20101206-NEWS--1-NAT-CCI-CL_-- 12/3/2010 3:56 PM Page 1
Vol. 31, No. 48 $1.50/DECEMBER 6 - 12, 2010
Area public stocks outpace S&P
recessionary low point — and in the Index shows NE Ohio companies by far outperform broader market same week the S&P 500 did the same — your portfolio would have been HOW THE INDEX WORKS By DAN SHINGLER markets as a whole, and by plenty, up by 172.5% as of last Tuesday, Nov. [email protected] according to Lakefront Capital Part- 30. That jump compares to a gain of Bloomberg tracks the stock prices ners, a Cleveland-based investment only 74.5% for the S&P 500 during of 49 local public companies, known as Past results have no bearing on management firm that tracks the the same period, said Lakefront the Northeastern Ohio Index. future performance, as investment stocks of area companies. senior vice president and portfolio It weighs the stocks according to firms say. But if you had invested in Lakefront follows something called manager Brent Luce. price, so higher-priced companies carry Northeast Ohio’s public companies the Northeastern Ohio Index, a group Mr. Luce noted that some of the more weight. For instance, Lubrizol since U.S. stocks hit their low in of 49 companies that Bloomberg Corp. makes up 7.06% of the index, biggest companies in the region spring 2009, you’d be well ahead of tracks via an index that allows local helped boost the index’s return. with Motors Liquidation Co. at 0.01%. the broader markets. companies to be compared to the “The index is price-weighted, so Since they fell to their nadir in S&P 500 index. STAN BULLARD higher-priced stocks do have more INSIDE: Charting monthly prices of the March of last year, the stocks of the If you’d invested in those Cleve- The LS Brand Building, which the influence over the index performance,” Northeastern Ohio Index against the S&P region’s public companies in the land-area companies on March 9, Greater Cleveland Partnership is eyeing 500 Index. Page 22 aggregate have outperformed the 2009, the day the local index hit its See STOCKS Page 22 for its new headquarters. GCP favors Commercial real estate new HQ in appears to hit bottom Theater Office, industrial downsizing leads to more vacancies District By STAN BULLARD Ellis Co.’s forecast of Northeast Ohio’s office [email protected] and industrial markets at year-end. Vacancies produced by PNC Bank emptying a total of Move necessary with Uncle Sam may have declared the Great 374,000 square feet of office space at multi- Recession over, but the economic reckoning ple rental buildings throughout downtown temp casino on deck the downturn spurred battered Northeast Cleveland and the region’s suburbs, plus By JAY MILLER Ohio’s commercial real estate markets again other downsizings, will push regional office [email protected] this year. vacancies to 22% at the end of this year from That’s the picture afforded by Grubb & See BOTTOM Page 8 The Greater Cleveland Partnership has zeroed in on a new headquarters site for the city’s chamber of com- merce group. It’s in the Playhouse- TOTAL INDUSTRIAL VACANCIES Square district at 1240 Huron Road, two sources told Crain’s Cleveland 2010 estimate Year-end 2009 Business. With the move, GCP would part 12.4% 11.2% ways with Positively Cleveland, its MARC GOLUB shared services partner in the Higbee PNC Bank has brought many far-flung workers into its down- Building on Public Square. town PNC Center, at the expense of other bank properties. GCP and Positively Cleveland, the region’s convention and visitors DOWNTOWN OFFICE VACANCIES bureau, are moving to allow for a temporary casino to take over their 2010 estimate Year-end 2009 Year-end 2008 current space on the first two floors of the Higbee Building. 22.2% 21.1% 19.8% GCP and its sister organization, the Council of Smaller Enterprises, would move their roughly 100 SUBURBAN OFFICE VACANCIES employees to the top two floors of the 2010 estimate Year-end 2009 Year-end 2008 five-story building at 1240 Huron, MARC GOLUB which was constructed in 1905. It The closing of Chrysler’s Twinsburg Stamping plant has hurt the industrial real estate market. 21.8% 20.5% 18.8% will share the building with the Liggett Stashower advertising agency, which moved in 2009 to the first three floors of the building. ALSO INSIDE: Ferro Corp. eyes move from downtown to suburbs. Page 3 ■ Two container companies expand in Glenwillow. Page 7 GCP president Joe Roman declined See GCP Page 20
SPECIAL SECTION 48 6 LEGAL AFFAIRS
NEWSPAPER Area attorneys say requests for social media
71486 01032 policies rise with employee usage ■ Page 15
0 PLUS: LOCAL FIRMS GROWING ■ PATENT REFORM ■ & MORE 20101206-NEWS--2-NAT-CCI-CL_-- 12/3/2010 2:21 PM Page 1
2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 COMING NEXT WEEK SAFETY FIRST The number of occupational injuries and illness cases in the private sector that Giving becomes part of the business model involved days away from work fell nearly 11% in 2009 to 964,990 from nearly 1.1 million in 2008, according to the United States Bureau of Labor Statistics. Some small businesses incorporate It’s partly the result of the recession and fewer people working, but it’s also a 700 W. St. Clair Ave., Suite 310, philanthropy into their operations. We measure of a more service-based economy and better workplace safety prac- Cleveland, OH 44113-1230 tices. The government said 2009 was the first year since it began collecting Phone: (216) 522-1383 talk to those business owners about this data more than a decade ago that the number of cases fell below 1 million. Fax: (216) 694-4264 their motivations. Plus, we look at the www.crainscleveland.com outlook for raises at year’s end. Industry ’09 cases ’08 cases Change Publisher/editorial director: Brian D. Tucker ([email protected]) Health care/ Editor: CORRECTION REGULAR FEATURES social assistance 172,820 171,300 0.8% Mark Dodosh ([email protected]) Managing editor: A Nov. 22, Page One story Classified ...... 20 Manufacturing 127,240 164,940 -22.9 Scott Suttell ([email protected]) about Northeast Ohio companies’ Sections editor: Editorial ...... 10 Amy Ann Stoessel ([email protected]) accumulation of cash contained an Construction 92,540 120,240 -23.0 Going Places ...... 14 Assistant editors: incorrect cash balance for Lubrizol Transportation/ Joel Hammond ([email protected]) Corp. of Wickliffe. The company in Letters ...... 11 warehousing 90,700 104,120 -12.9 Sports the quarter ended Sept. 30 had a Kathy Carr ([email protected]) List: Commercial real Leisure/hospitality 87,740 86,190 1.8 Marketing and food cash balance of $918.2 million. A Senior reporter: chart accompanying the story had estate leases ...... 19 Total private industry 964,990 1,078,140 -10.5 Stan Bullard ([email protected]) correct figures. Reporters’ Notebook.....23 Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Delivering results. Research editor: Deborah W. Hillyer ([email protected]) Executing for financial sponsors and middle market clients Cartoonist/illustrator: Rich Williams Marketing/Events manager: across the capital markets. Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) September 2010 September 2010 August 2010 August 2010 Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Dirk Kruger ([email protected]) a portfolio company of has acquired a majority interest in Nicole Mastrangelo ([email protected]) $6 Million Dawn Donegan ([email protected]) has acquired a Series A Convertible Business development manager & majority interest in classified advertising: Preferred Stock Genny Donley ([email protected]) $775 Million Office coordinator: First Lien and Second Lein Toni Coleman ([email protected]) Senior Credit Facilities Senior Secured Production manager: Credit Facilities Craig L. Mackey ([email protected]) Exclusive Placement Agent Financial Advisor & Exclusive Production assistant/video editor: & Financial Advisor Sole Bookrunner Joint Bookrunner Sell-Side Advisor Steven Bennett ([email protected]) Graphic designer: Kristen Wilson ([email protected]) April 2010 April 2010 March 2010 October 2009 Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 has sold ® ([email protected]) has recapitalized has divested Circulation manager: has acquired Erin Miller ([email protected]) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) to 1-877-824-9373 $115 Million to Senior Secured $673 Million Credit Facilities Exclusive Exclusive Exclusive Crain Communications Inc. Joint Bookrunner Sell-Side Advisor Sell-Side Advisor Buy-Side Advisor Keith E. Crain: Chairman Rance Crain: President We know that successful, long-term business relationships depend upon delivering results for our clients. Merrilee Crain: Secretary Mary Kay Crain: Treasurer ® William A. Morrow: At KeyBanc Capital Markets, more than 500 professionals leverage extensive industry knowledge, equity and debt capital Executive vice president/operations markets expertise, and a leading merger and acquisition advisory practice to deliver strategic solutions that help our clients Brian D. Tucker: Vice president Robert C. Adams: capitalize on opportunities. Group vice president technology, circulation, manufacturing Today, the markets are volatile, but at KeyBanc Capital Markets our dedication to delivering results for clients remains constant. Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing For information on how KeyBanc Capital Markets can help you reach your business objectives, call Kathy Henry: Randy Paine, Co-Head of KeyBanc Capital Markets, at 216-689-4119, Corporate circulation/audience Doug Preiser, Co-Head of KeyBanc Capital Markets, at 216-689-5944 or development director G.D. Crain Jr. Paul Schneir, Managing Director and Group Head of Mergers & Acquisitions and Private Capital Group, Founder (1885-1973) at 216-689-4005. Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, Detroit, Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136
Audit Bureau KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., of Circulation Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. ©2010 KeyCorp ADL2403 20101206-NEWS--3-NAT-CCI-CL_-- 12/3/2010 3:48 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Another global firm mulls exit A TASTE OF from downtown Ferro Corp. said to have targeted Mayfield HOLIDAY Heights for relocation from East Ninth area
By STAN BULLARD CHEER [email protected]
Ferro Corp., which owns its own Many employers plan to host parties, corporate headquarters building at 1000 Lakeside Ave., is considering a but spending remains marginal move that may uproot 200 employees from downtown Cleveland’s East Ninth Street corridor. By MICHELLE PARK Mary Abood, spokeswoman for [email protected] Ferro, confirmed the global specialty chemicals maker is in search mode he deep freeze most employers put but so far has made no definite plans. “We are endeavoring to find space last year on their holiday party that would allow our 200 office spending is thawing, but only ever employees to work on a collaborative STAN BULLARD so slightly. basis,” Ms. Abood said in a voice T mail response to queries from The decision puts in play the Though caterers and party centers see Crain’s Cleveland Business. She did potential exit of Ferro at the same some reason for cheer, few companies are not return three calls with followup time that Eaton Corp. builds a head- questions. See FERRO Page 8 returning to their party hearty ways before 2009 — the recession-plagued year when many who serve up holiday parties saw their THE WEEK IN QUOTES biggest drop in business in a decade. Their “Does this mean the “The problem is once observations are backed by two surveys — local economy is it’s out there, it’s one local, the other national — that suggest the party scene this year will be no more doing well? You cannot gotten re-tweeted or robust than last year. say that.What it says forwarded to people. See PARTIES Page 21 is that companies You lose control very here are ... figuring out quickly.” what they do well and — Nancy Gillette, general counsel at the Ohio State Medical how to work the globe.” Association. Page 12 — Ned Hill, dean of Cleveland State University’s Maxine Good- man Levin College of Urban Affairs. Page One
“None of my clients “(Northeast Ohio spend their days companies) had to thinking of ways to pry find markets that into personal lives … were growing and It’s only when some- markets where they thing goes wrong.” could expand.” — Seth Briskin of Meyers, — Ward Bower, principal, Roman, Friedberg & Lewis in Altman Weil Inc. Page 15 Beachwood. Page 15
INSIGHT Small banks may pay price of freedom with financial reform
By MICHELLE PARK INSIDE: Consolidation among small [email protected] Some area institutions plan to resist acquisition amid consolidation banks expected to continue. Page 21
The way the president of the and costly financial regulation. number of them and because of the new or expanded regulations that part, of new disclosure and reporting Ohio Bankers League sees it, small It’s hard to say how much con- “greater challenges” and “greater have affected banks over the last requirements. banking is at a “crisis point” — and solidation might occur, said James pressures” they face. two years, Mr. Chessen said. “It’s going to be increasingly he’s far from alone in that belief. Chessen, chief economist for the The American Bankers Associa- The specifics of the new regula- difficult for community banks to Mike Van Buskirk is one of many American Bankers Association. How- tion estimates the Dodd-Frank Wall tions remain to be seen. However, try to do (what) they have in the bank industry insiders who predict ever, Mr. Chessen said it’s reason- Street Reform and Consumer bankers expect to deal with past,” said Dell Duncan, president a rising number of small banks will able to estimate 1,000 institutions Protection Act signed into law last the imposition of higher capital and CEO of Ohio Commerce Bank, cease to exist over the next couple will be merged over the next two or summer will create more than 5,000 requirements and changes that will a single-office bank in Beachwood years as institutions are sold or three years — most of them smaller pages of new regulations. Those decrease bank revenue and increase with $82 million in assets. merged in the face of mounting banks, because there is a large rules will come atop the 50-plus bank costs, the latter the result, in See BANKS Page 21 20101206-NEWS--4-NAT-CCI-CL_-- 12/3/2010 2:57 PM Page 1
4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 More hyperlocal media enter fray Despite obstacles in drawing dollars, startup sites make way to area By JAY MILLER NEW KIDS ON THE BLOCK at The Plain Dealer, and Susan Ruiz [email protected] Patton, another PD alum, are Patch’s National and local companies regional editors for Northeast Ohio. Media companies new and old, are starting hyperlocal web sites Mr. Dubail said the Northeast large and small are beginning to battle aimed at drawing ad dollars Ohio sites will run from Avon in the across Northeast Ohio for ad dollars that have left newspapers. A west to Mentor in the east and as far that have fled newspapers for the sampling: south as Massillon and North Internet. ■ Patch.com: AOL Inc. says it Canton. Patch’s communities, and The combatants are the hyper- will spend $50 million by the end of hyperlocal web sites in general, locals — web sites that focus on small 2010 to start 500 hyperlocal sites. focus on a single community, usually populations such as a single suburb ■ Yahoo.com: It launched early defined by municipal boundaries. or maybe even a neighborhood. last month test hyperlocal sites in Mr. Dubail and Ms. Patton are They come in a range of business California, Michigan and New York hiring local editors for sites covering models, from local nonprofits to through Yahoo Local. Avon Lake, Beachwood, Cleveland giant national media companies. ■ Outside.in: CNN owns this Heights, Kent, Shaker Heights, Stow Designs, too, vary from the creative New York City business, which and Twinsburg. Patch also plans a and splashy to rigid templates to mainly aggregates news. site for the communities that comprise more prosaic online adaptations of the Mayfield City School District — small-town newspapers. Gates Mills, Highland Heights, May- Salt for Ice Control Their common link is that they and carry some locally produced field Heights and Mayfield Village. share a focus on content unique to content for metropolitan areas. Out- Patch’s goal, said president Bag and Bulk each small community — stories on side.in, a New York City hyperlocal Warren Webster, is to “engage the town council meetings, high school business owned by the CNN cable audience and connect that audience • Halite Big Savings on sports and features on local people network and a group of investors, to advertisers.” Its local sites at some Truckload Orders! and businesses. They include exten- claims to serve nearly 58,000 neigh- point will have advertising managers, • JiffyMelt sive event calendars and usually borhoods, though its web sites are but Mr. Dubail said for now the sites • Calcium Minimum Delivery = 1 Pallet directories of local businesses. more news aggregators than producers in this market will carry a mix of Chloride Forklift Delivery Available The hyperlocals seek a piece of of original content. local and national advertising. what online media seers believe could Daily newspapers, including The “We do not have a sales team John S. Grimm, Inc. 1-800-547-1538 be billions of dollars spent by local New York Times, The Washington locally, but that will happen eventu- Authorized Dealer advertisers. Borrell and Associates, a Post and The Plain Dealer’s online ally,” he said. Williamsburg, Va., media research partner also are moving into the One online media editor who firm, estimates the local online hyperlocal space. Cleveland.com, requested anonymity because he isn’t advertising market will reach $16 which carries news from The Plain authorized to speak for his company billion in 2010. Borrell also believes Dealer and the Sun newspapers, said Patch in his view “is taking a ’90s the market for local mobile advertising, quietly has launched 70 local sites approach” to building its business. estimated at $285 million in 2009, using PD and Sun news and plans to “Throw money, a lot of money, at Andrew Hopper Joins will grow to $4.7 billion by 2014. expand those sites. something and get it to work and First Place Bank Newspapers, the theory goes, are Some of the best sites so far are then sell advertising,” the editor said. fading away, leaving butchers, restau- homegrown, including the Heights Differing missions rants, auto dealers and maybe even Observer, which targets Cleveland Commercial Banking Team banks with fewer ways to reach people Heights and University Heights. Mr. Dubail said unlike many who want to do business close to home. Similar community efforts exist in a current hyperlocal sites, which often The question, however, is whether number of Northeast Ohio commu- are run by nonprofit organizations local media that target geographic nities, including Lakewood, Parma using volunteers in the community, Andrew Hopper has joined regions of less than 100,000 people are and the Collinwood neighborhood Patch sites will be produced by pro- First Place Bank as Vice an effective ad medium in the digital age. of Cleveland. fessional journalists. Many in the media business believe “The whole idea of Patch is that President and Commercial they can be. Many others do not. But can they make money? it’s done by people with professional news experience or at least they’ve Relationship Manager, Patchwork of sites While the ad dollars the firms Commercial Banking. creating hyperlocal content see are been to journalism school,” Mr. The 800-pound gorilla that is soon real, there is a question about Dubail said. to enter the Northeast Ohio market whether small-market media can The Heights Observer — which Hopper has 13 years of is Patch.com, a unit of AOL Inc., a win a large enough share of those also has a print publication — is the web services company that used to dollars to be successful. kind of hyperlocal site to which Mr. experience in providing be America Online, an Internet ser- “Local or regional or national is Dubail refers. business banking services to his vice provider. It was spun off last almost irrelevant” online, said King Bob Rosenbaum, chair of the clients, having held managerial year from Time Warner Inc. and has Hill, president of DigiKnow Inc., a Observer’s advisory committee, said Andrew Hopper been recasting itself as an indepen- Cleveland digital marketing agency. unlike a for-profit hyperlocal opera- positions at other Northeast dent company. “For someone to say they’re targeting tion, the Observer’s primary goal is Ohio financial institutions. AOL bought Patch in June 2009, local spaces is irrelevant; the Internet not to make money. when it had five hyperlocal sites in has no boundaries.” “Our mission isn’t to create a self- Connecticut and New Jersey. In Even Gordon Borrell, president of sustaining model for hyperlocal “Andy is a great addition to our commercial August, AOL officials said the com- Borrell Associates, is skeptical that a journalism,” he said. “Our mission is banking team,” said Kenton Thompson, North pany by the end of 2010 would spend hyperlocal audience can be a valu- to foster community engagement, $50 million on Patch in hopes of able media buy. increase the level of participation by Coast Regional President. “With his strong operating 500 sites by the end of the “Here’s the problem: The hyper- members of the community and commitment to his clients, well-rounded year and more in 2011. local content everyone focuses on make sure that it can pay for itself.” Patch already has 390 sites up and is news,” Mr. Borrell recently told In between those two ends of the financial services expertise, and involved running in 18 states and the District Brandweek magazine. “But advertisers spectrum is Cleveland.com, the experience with the Cleveland area business of Columbia and plans to go live with are not looking for content; they’re online platform for The Plain Dealer community, he’s a perfect fit with our brand of the first of 24 sites in Northeast Ohio looking for an audience and certain and the Sun newspapers. Advance in the weeks ahead. The home page (consumer) characteristics. Publications Inc. of Staten Island, business community banking.” of the Patch web site lists three “I still have worries about sites like N.Y, owns all three. Northeast Ohio communities as Patch.com or other hyperlocal news Cleveland.com’s 70 locals sites are Hopper is a graduate of The Ohio State coming soon — Avon, Cuyahoga sites attracting much less valuable just a start. It expects eventually to Falls and Lakewood. audiences (for advertisers),” he said. have sites for all the communities in University and is a member of Rotary Other national media organiza- That attitude isn’t stopping media its market area. International. He can be reached at tions, such as online media giant from entering the fray in Northeast “We’re expanding it so each Yahoo Inc., also are jumping into the Ohio, it appears. community in Greater Cleveland will 216-288-1174. hyperlocal arena. Patch already is hiring editors for have a local home page,” said Denise Yahoo in early November launched its foray into Northeast Ohio. Polverine, Cleveland.com’s editor-in- test sites in California, Michigan and chief. She added, “We’re giving them New York through its existing Yahoo News vets resurface news and information for their com- Local portals that aggregate news Jean Dubail, former online editor munities.” ■
® Volume 31, Number 48 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH www.firstplacebank.com 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.
REPRINT INFORMATION: 800-290-5460 Ext. 136 20101206-NEWS--5-NAT-CCI-CL_-- 12/3/2010 2:13 PM Page 1 20101206-NEWS--6-NAT-CCI-CL_-- 12/3/2010 4:28 PM Page 1
6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 IT execs optimistic on student skills Report: Private equity Board of regional leaders makes progress on amount of IT talent in Northeast Ohio. firm to acquire Transtar facilitating opportunities for recent graduates “The RITE board members are just as committed today as they were a Mayfield Heights-based interest in Transtar in 2005 from By CHUCK SODER “We’ve got a decent year ago,” Dr. Shanahan said. “I founder Monte Ahuja, who retained [email protected] don’t know how to explain that.” a stake in the company. cross-section of people The need for developing more IT Linsalata Capital first Friedman Fleischer has confirmed Jim Shanahan has faith that the committed to making talent, a problem often discussed in bought transmission the acquisition of Transtar, according executives who make up the this work.” Northeast Ohio’s tech community, to LBO Wire. A call placed to the Regional Information Technology was documented in a 2008 study parts maker in 2005 California firm last Friday morning – Tom Lucas, chief information by NorTech, a technology-focused was not returned. Engagement Board will do more officer, Sherwin-Williams Co. than just talk. economic development group based A San Francisco private LBO Wire reported that Why? Because of the way they in Cleveland. Just 20% of companies equity firm is acquiring the deal involves the use of talk. their IT course offerings using a with IT employees in Northeast Ohio transmission parts maker “a proposed $249 million “From the day they showed up, British system for classifying IT skill offer IT internships, according to the and distributor Transtar first-lien term loan and a they just kind of took over the sets. The University of Akron and study, which indicated fresh IT grad- Industries Inc. from Lin- proposed $135 million discussion,” said Dr. Shanahan, Stark State College are next to uates often lack the work experience salata Capital Partners Inc., second-lien term loan, director of the Entrepreneurship undergo the analysis. many companies demand. according to a story posted along with an undisclosed Innovation Institute at Lorain A second committee will focus on Among the engagement board’s on LBO Wire. amount of equity from County Community College. increasing the number of IT intern- members are executives from the The buyer is Friedman Ahuja Friedman Fleischer.” For the past 18 months, 12 high- ships in Northeast Ohio, while a Cleveland Clinic, Sherwin-Williams Fleischer & Lowe LLC, Friedman Fleischer’s web level IT executives from across the third committee will create a plan to Co., Eaton Corp. and J.M. Smucker according to the LBO Wire story, site describes it as a private equity region have been meeting monthly convince students to pursue IT Co., as well as smaller, IT-focused which is based on information from firm “focused on partnering with to figure out how to increase the majors in college. firms such as software provider Standard & Poor’s Ratings Service. management to create value in quality and quantity of IT students Dr. Shanahan expects all three e-Ventus Corp. and data center A spokeswoman for Transtar, middle-market companies.” graduating from Northeast Ohio committees to recommend further operator BlueBridge Networks LLC, which is based in Walton Hills, last S&P assigned Transtar a B-plus colleges. action by June, which is when a both of Cleveland. The group also Friday declined comment on corporate credit rating, according to The board, which includes exec- one-year, $287,000 grant from the includes the University of Akron, the LBO Wire story. She would not the LBO Wire story. The company’s utives from some of the region’s Ohio Board of Regents that funds which collaborates with the board as confirm the transaction, saying three ratings benefit from its “good free largest corporations, already has the board’s work is set to run out. both an IT employer and an educa- times in a brief conversation, “We cash flow prospects because of low made progress, said Dr. Shanahan, Companies on the engagement tional institution. have no comment at this time.” capital spending,” LBO Wire stated, who helped organize the group as board also contribute money to pay It takes a lot to make change A call to Linsalata was referred to citing S&P. part of a broader initiative called for the services of a part-time pro- happen, but this group has what it one of the firm’s principals, Michael LBO Wire also noted that Transtar’s the Ohio Skills Bank. The statewide ject manager. takes to do it, said board member J. Faremouth, who serves on the margins “are stronger than many of effort is intended to make sure By June, the group will know “just Tom Lucas, chief information officer Transtar oversight team for the May- its peers thanks to its diversified colleges are teaching the skills busi- how important it is to sustain this,” for Sherwin-Williams. field Heights private equity firm. Mr. lines of products and services.” nesses need. Dr. Shanahan said. He expects the “We’ve got a decent cross-section Faremouth was said to be on a tele- Crain’s in its most recent list of Members of one of the engage- engagement board to continue of people committed to making this phone call and did not subsequent- Northeast Ohio’s largest privately ment board’s three committees are working after the grant money expires, work,” said Mr. Lucas, who is chair of ly return a message seeking com- held companies, published June 14, helping officials from LCCC and however, because its members are the committee working to help col- ment on the deal. reported that Transtar had revenue Baldwin-Wallace College analyze so passionate about increasing the leges evaluate their course offerings. ■ Linsalata acquired a majority of $450 million in 2009. ■
A CALFEE ATTORNEY knows that industry expertise is the key to valuable counsel.
We work hard every day to earn the title of trusted advisor. By immersing ourselves in your industry, we can better understand the complexities and nuances of your organization. This commitment allows a Calfee attorney to offer true value: interpreting the law to help you achieve your business objectives.
Calfee, Halter & Griswold LLP w w w . c a l f e e . c o m 20101206-NEWS--7-NAT-CCI-CL_-- 12/3/2010 3:47 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Sisters of Charity offers independent docs access to resources
By TIMOTHY MAGAW The goal of the new organization Sisters of Charity’s Cuyahoga Physi- purchase price for the electronic billions of dollars in federal incen- [email protected] is to create a haven for independent cian Network, which is a group of 30 medical records system as well as a tives for modernizing medical files. doctors and to foster collaboration doctors directly employed by the $200 monthly technology fee. Many doctors believe they must The Sisters of Charity Health System among those who share in the health system. Among the core services included join a hospital system in order to has launched a for-profit subsidiary health system’s faith-based mission, Beyond Northeast Ohio, the new in the arrangement are payment survive, but Dr. Hall said a healthy that looks to create ties with local Mr. Alvarez said. Any excess rev- group also is looking to align with processing, account reconciliation, number of physicians in the region independent physicians by giving enue generated by the subsidiary independent physicians in Columbia, payroll and general accounting. would prefer to remain autonomous. them tools to better run their prac- would be reinvested in the company S.C., where Sisters of Charity also “It’s a matter of enjoying being tices while allowing them to stay to better serve the physicians, he owns a hospital. Still the boss your own boss and all the benefits independent. added. “We want to make this available Dr. Gregory Hall, a primary care that go along with that,” Dr. Hall said. Rather than buy the practices of “This is not intended to be a huge to everyone who feels this is right physician in Cleveland and one of Mark Wiedt, president and chief some of the roughly 4,000 indepen- revenue generator for the system,” for them,” Mr. Alvarez said. the first members of the new orga- operating officer of Independent dent doctors in Northeast Ohio and Mr. Alvarez said. To align with the system, physi- nization, said it’s increasingly diffi- Physicians Solutions, echoed Dr. make them employees of the health Mr. Alvarez said he and his cians must pay a percentage of their cult for independent doctors to Hall’s sentiments. He said the system, the Sisters of Charity have colleagues plan to pursue as many cash collections to Independent survive in the evolving health care for-profit company will allow the set up an alternate arrangement. For of the region’s independent physi- Physicians Solutions; that percent- market because of the impending back-end operations of independent a fee, the subsidiary — known as cians as possible, but the aim is to age amounts to 7.75% for those mandates of federal health care physicians to be more efficient and Independent Physician Solutions — have more than 80 doctors signed earning more than $600,000 a year reform. Installing the electronic ultimately will save them money. offers physicians resources such as on by the end of next year. The and 6.75% for those earning less. medical record system, for instance, “Those things take them away access to an electronic medical arrangement is separate from the Practices also will pay a $9,000 will give physicians a slice of from their patients,” Mr. Wiedt said. ■ records system and managed care contracting services. The arrangement also allows physicians to invest in the for-profit company, said Orlando Alvarez Jr., the system’s senior vice president for physician alignment and CEO of the new organization. Mr. Alvarez said the Sisters of Charity made a “multi- million-dollar” investment in the startup, but he would not disclose the amount.
Two container Side by side. outfits finish Quarter by quarter. big expansion Year after year. in Glenwillow Opportunity at every step. By STAN BULLARD [email protected]
Cleveland Steel Container Corp. and sister company North Pak Container are the latest examples of industrial concerns expanding despite the real estate downturn. $36,000,000 $42,000,000 $250,000,000 $400,000,000 $125,000,000 The two are scheduled to set up Revolving Line of Credit Revolving Line of Credit Revolving Credit Facility Senior Notes Revolving Credit Facility shop today, Dec. 6, in about 100,000 and Term Loan and Term Loan square feet of a new industrial Lead Arranger and office/warehouse property at 30310 Administrative Agent Sole Lender Joint Lead Arranger Joint Bookrunner Sole Lead Arranger Emerald Valley Parkway in Glenwillow. The space represents a 47% expan- January 2010 March 2010 March 2010 April 2010 June 2010 sion from the companies’ prior Twinsburg location, where they occupied 68,000 square feet. Dennis Puening, chief financial officer for the container companies, said they needed more space because they have continued to grow through $200,000,000 $30,000,000 $350,000,000 $377,000,000 $110,000,000 the downturn through increased sales Increase and Extension of Senior Secured Revolver Revolving Credit Facility Revolving Line of Credit Revolving Line of Credit Senior Secured Revolver and Term Loan and Term Loan to existing customers and new ones. and Term Loan Joint Lead Arranger and Joint Lead Arranger and He declined to disclose revenues. Lead Arranger and Cleveland Steel makes steel con- Administrative Agent Sole Senior Lender Syndication Agent Documentation Agent Syndication Agent tainers of 7.5 gallons or less and June 2010 June 2010 August 2010 September 2010 October 2010 North Pak distributes Cleveland Steel pails and other products. They together employ about 50 people. James Klements represented Con- We’re committed to Ohio. That’s why we’re helping companies here navigate changing market cycles and create new tainer Steel and North Pak in their opportunities for success. Our client managers are trusted partners who work with you to understand your business site search with colleague Gerald Medinger of brokerage Weber Wood and seamlessly deliver customized solutions based on your unique needs. From term loans through revolving credit Medinger/Corfac International. He lines, let us help increase your financial flexibility and drive operational efficiencies. said the companies considered mul- tiple locations and construction of a Joseph DiRocco new building before settling on the lease at the new, 182,000-square- 1.216.925.5396 foot building in Glenwillow devel- oped by Premier Development Part- ners of Cleveland. Glenwillow Mayor Mark Cegelka said he was glad the companies moved to his village, but worked “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment with them only after satisfying him- Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered self that they had exhausted options by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2010 Bank of America Corporation. for remaining in Twinsburg. ■ 20101206-NEWS--8-NAT-CCI-CL_-- 12/3/2010 3:48 PM Page 1
8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 Bottom: Vacancies provide tenants leverage to make deals
continued from PAGE 1 to the northwest industrial market, vacancy climbed to 21.8% this year difficulty scraping together cash for Coyne sees the situation as a tale of 20.5% at the end of 2009. which follows Interstate 90 west to from 19.8% in 2009. renovations to their offices. two markets. Meanwhile, the shutdown of Lorain County and is plagued by In better times, vacancy often rose In only one office market can Newer buildings with 30-foot tall Chrysler Corp.’s 2 million-square- vacancy at Ford Motor Co.’s former due to completion of new rental landlords be selective, and that is ceilings are in demand so much foot Twinsburg stamping plant was Lorain assembly plant, which office buildings, but they were not the eastern suburbs, Mr. Saltzman that landlords are exacting higher the largest of the plant and ware- closed three years ago. much of a factor due to the third said. Thanks to the dominance of rents for many of them than a year house closings that will increase As for Northeast Ohio’s office year of the commercial real estate locally owned companies based in ago, while older buildings with 19- industrial vacancy to 12.4% as of market, Jeff Cristal, director of the credit crunch, which has made the eastern suburbs, the vacancy foot ceilings go begging until the Dec. 31 from 11.2% a year ago. The Cleveland office unit of Grubb & speculative development difficult. rate there is 19.8% this year, down right prospect comes along. impact of emptying the massive Ellis, sounds like his counterpart With Eaton Corp. constructing a from 19.25% last year. Much of this year’s industrial Chrysler plant, where Maynards Mr. Coyne in saying he believes it new headquarters in Beachwood, The eastern suburbs were the only activity was in new warehouse Industries Inc. of Toronto this fall has “hit bottom.” That’s largely about 300,000 square feet of rental market with substantial new rental buildings completed in 2007 and sold off equipment, was muted by because the long-awaited office office space downtown will be shed office space as Developers Diversi- 2008, Mr. Coyne said. After arriving the 300 million-square-foot market consolidation by PNC of former in 2012. fied Realty Corp.’s headquarters just in time for the recession, build- size of Northeast Ohio’s industrial National City Corp. offices hit the addition in Beachwood included ings such as Diamond Center One market. market this year. Tenants call the shots extra space for future expansion by in Glenwillow Village languished “It’s a blip on the screen,” said Statistics support Mr. Cristal’s The result of all the vacant space the real estate investment trust, until this year. Terry Coyne, director of Grubb & view, as the region shed office space is predictable. which made that space available to Another sign of resurgent demand Ellis Co.’s industrial unit, who sees at a slower pace in 2010 than in “It’s a tenant’s market,” said the rental market this year. Most of was in industrial construction, the better times ahead. 2009. The volume of vacant space William Saltzman, a Grubb & Ellis that space rented up, but it created most active area aside from corpo- “We’ve clearly hit bottom, and downtown increased 6% to 4.8 vice president. Tenants who seek other vacancies in the submarket. rate build-to-suit structures. More there is so much activity in the mar- million square feet this year from better office space may find it a The western suburbs remain the than 1 million square feet of indus- ket we’re on the way up,” Mr. 4.6 million square feet in 2009, good time to move up, he said. weakest office market, with a 27% trial space was added this year, Coyne said. when the volume of vacant space Or, it may be a good time to vacancy rate this year, up from 23% more than double last year’s figure, The fallout of Chrysler’s bank- rose 9% from 4.1 million square feet renew leases at existing offices last year, largely due to difficulties Grubb & Ellis reported. However, ruptcy-empowered restructuring in in 2008. while landlords worry about the for older buildings on Center Ridge half that action came in a handful Northeast Ohio was more profound Downtown vacancy hit 22% this future, Mr. Cristal noted. Road in Westlake and Rocky River. of large buildings of more than in the southeast industrial submar- year, up from 21% a year ago. “Landlords will do everything The south suburban market, which 100,000 square feet. ket, which follows Interstate 271 In the suburbs, the volume of they can to retain tenants over the follows Interstate 77 south, saw A dour 2010 aside, Grubb & Ellis through Twinsburg, as vacancy vacant office space rose 11% to 3.8 next 18 months,” he said. vacancy climb to almost 23% this brokers look for improvements in there rose to 13.8% this year from million square feet from 3.4 million However, tenants often must year from 20% last year. the coming year. 11% a year-ago. However, it’s not square feet in 2009, when vacant look to find situations where existing The reason? the region’s weakest industrial space was up 14% from 3 million suites work for them, Mr. Cristal ‘Crazy busy with prospects’ “We’re all crazy busy with submarket. That distinction belongs square feet in 2008. Suburban said, as some landlords have had On the industrial front, Mr. prospects,” Mr. Saltzman said. ■
Perfect for gift-giving and Ferro: Exit would be next employee incentives blow to financial district continued from PAGE 3 Nine12 District. The goal would be to quarters in Beachwood to replace encourage the conversion of empty this holiday season its longtime corporate home in the office space along the corridor to namesake Eaton Center, two blocks mixed-use residential and retail southeast of Ferro on East 12th Street. space and to take steps to enliven Real estate insiders who asked the street atmosphere. not to be identified say Ferro may not have made a decision, but it’s so far Mayfield’s tax advantage along that its site search is focused Joseph Marinucci, president and on the former Novelis Corp. regional CEO of the nonprofit Downtown headquarters, 6060 Parkland Boule- Cleveland Alliance, said he has vard in Mayfield Heights. discussed Ferro’s site search with Novelis, an aluminum sheet and the company and its real estate foil producer, is reviewing several representatives. He declined to say options for how to handle the several whether remaining downtown is an years remaining on its Mayfield option for Ferro. Heights lease, said company spokes- “Ferro is a very important com- man Charles Belbin. He declined to pany to us,” Mr. Marinucci said. “It “Ferro is a very important company to us. It has a long history in Cleveland and in downtown Cleveland.” – Joseph Marinucci, president and CEO, Downtown Cleveland Alliance
elaborate on any specifics. has a long history in Cleveland and Novelis this summer completed in downtown Cleveland. I’m always the consolidation of its former trying to retain companies in down- regional headquarters from Mayfield town Cleveland.” ...and treat yourself to Heights to its U.S. headquarters in Mayfield Heights Mayor Greg Atlanta. Novelis has 40 employees Costabile said he has not had any left in Mayfield Heights, but will contact with Ferro, but the former have no office presence there by Novelis space has had several com- next March 31, Mr. Belbin said. panies look at it recently. A sublease typically may provide The space was renovated in 2005, a bargain for a new tenant because Mayor Costabile said, so the deci- the original tenant may subsidize sion by Novelis to consolidate its re- some of the rent to reduce the cost gional office with its national office of space it no longer needs. Davis was a particular shock. Mayor Development Group of Solon owns Costabile noted that the 1% income and developed the building at 6060 tax rate in Mayfield Heights is an in- Parkland. Owner Jeff Davis did not centive in its own right. Cleveland’s Purchasing gift cards through Giant Eagle return two calls on the fate of the municipal income tax rate is 2%. Novelis space. Ferro has owned the 45,000- is a smart way to simplify your life – when If Ferro exits its East Ninth Street square-foot building at the corner home, it would aggravate a vacancy of Lakeside and East Ninth Street you buy popular retailer gift cards, problem along Cleveland’s former since Jan. 31, 1989, according to financial district that has prompted Cuyahoga County land records. It you can earn fuelperks!, which save you money on gas. the Downtown Cleveland Alliance sits in the shadow of the North and real estate interests to formu- Point, AT&T and Celebrezze Federal GiantEagle.com late plans to promote it as the Building office towers. ■ 20101206-NEWS--9-NAT-CCI-CL_-- 12/3/2010 2:47 PM Page 1 20101206-NEWS--10-NAT-CCI-CL_-- 12/2/2010 4:17 PM Page 1
10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010
PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Boxed in overnor-elect John Kasich campaigned on the inability of current Gov. Ted Strickland to hold on to jobs in Ohio over the last four years. American Greetings Corp. will put GMr. Kasich to an interesting test to find out just how far he’s willing to go to persuade a big employer to remain in the Buckeye State once it starts talking about moving away. Companies across Ohio will be watching to see the precedent Mr. Kasich sets in his handling of the FROM THE PUBLISHER situation at American Greetings, which has raised the prospect of shipping its headquarters to the Chicago area. The greeting card company and the 2,000 jobs now at its headquarters in suburban Gilbert should put heat on the NBA Brooklyn aren’t out the door yet, and even if it does relocate, it may opt for a new home in one of four ell, don’t you feel better has enough evidence to force NBA Com- game by saying: “Kiss my (fill in this blank Cleveland-area suburbs instead. now? The Player Who missioner David Stern to take action.” yourself). It’s going to be a fun night.” But by indicating that it could leave the state Must Not Be Named has I don’t know if that’s true or not, but I Now, I don’t know Bud Hagy, but I come and gone. Cleveland hope it is. Dan Gilbert seems to me to be hope his evening was worth the 10 grand altogether — and that it will make its decision isW still in one piece, as are the region’s a determined guy, and I believe the he turned down. Not sure I would have known by the end of its fiscal year in late February pro basketball fans. league and its commissioner have done made that choice, but then, I wouldn’t — American Greetings has managed to put Mr. As I wrote this Thursday, in the midst of little to control this player manipulation, have owned those seats in the first place. Kasich in a box. The incoming governor won’t want the kind of media onslaught that left me something that’s being speculated is in * * * * the stigma of losing a large employer within the first longing for the recent political the works by other NBA players AND FINALLY, AS IF the bankers don’t few weeks of his term. Still, he also must be mindful commercials, no one knew how BRIAN angling to join new teams with have enough challenges from a public that whatever aid he extends to American Greetings those in Quicken Loans Arena TUCKER pre-selected free agent partners. that blames them for our economic woes in the way of low-interest loans, tax breaks and would react when LeBron James The Cavaliers are right to and business owners who castigate them outright grants of state money only may encourage returned as a hated member of investigate. All fans should for holding onto their money and refusing other companies to use the “we may take our jobs the Miami Heat. know whether Pat Riley was to make loans. Now comes news of this What we did know, however, involved in this, as well as Fifth Third Bank settlement. elsewhere” gambit to extract fat giveaways from the is that the Cavaliers organiza- Heat superstar Dwayne Wade. Without admitting guilt, the Cincin- state. And these companies are sure to cite American tion had begun its own legal Meanwhile, I hope our local nati-based bank — Ohio’s biggest — last Greetings as the standard by which they’ll judge the investigation into how this fans support our local team, as week agreed to pay $10 million in fines state’s generosity. whole thing transpired with the a first-class organization and a over claims it was manipulating the In our role as a cheerleader for Northeast Ohio, team’s former star joining solid coach build for success in order in which it posted debits in order we want to see the state draw on its arsenal of former Toronto standout Chris Bosh in our new, “superstar-less” reality. to create more overdraft fines. economic incentives to keep American Greetings jumping to the Heat to chase a ring. That would suit Northeast Ohio fine. You can be sure that Fifth Third and here. However, we also recognize governments The Akron Beacon Journal, in a story * * * * all other Ohio banks are scrambling to only can go so far in accommodating employers that almost seemed dwarfed by all the THAT SAME ISSUE of the Akron make sure this doesn’t happen (or con- before it no longer pays for them to retain these other pre-game nonsense, referred to a newspaper contained this quote from tinue to happen) again. We need banks Yahoo! Sports story that used unidenti- Cavs ticket owner Bud Hagy, who to be healthy, and to start to loan to busi- prized possessions and the jobs they provide. fied sources who claimed Cavs owner claimed he turned down $10,000 for his ness again ASAP if we’re going to get the The best scenario would be for American Greet- Dan Gilbert vowed “not to stop until he four courtside seats for last Thursday’s economic recovery fully engaged. ■ ings and officials at the state and local levels to find a middle ground that is livable for the company and the government bodies involved. We hope a spirit THE BIG ISSUE of compromise is present as representatives of all sides discuss how to retain a valued employer and Does the WikiLeaks release of classified government documents, many revealing foreign affairs secrets, provide a solid corporate citizen in our region. good look at what the U.S. government is doing, or does it unnecessarily harm our relationships abroad? Love story ou could say the $42 million gift that Jane and Lee Seidman are giving to University Hospitals for the new cancer center that will be named in their honor all began with a Simca.Y Car buffs may be the only people who remember the European automobile, but it was a Simca deal- NATHAN LILLY BILL SMIRNOFF NORM SIRIANNI TRACY WARD ership that gave Mr. Seidman his start in the car Cleveland Cleveland Chicago Cleveland business. Fifty-one years and 36 franchises later — I think it’s going to cause mass That’s a tough question. … Do Put them in jail. It’s damaging It can cause harm. You need as Mr. Seidman modestly summarizes on his busi- hysteria. … Anybody can get we have to know everything relationships with other to keep things in the industry ness card — the founder of the Motorcars Group this information, really? the government’s doing? I don’t countries. private. and his wife continue to share their wealth with the know. community they love. We applaud these Cleveland natives for their ongoing generosity to the city they still call home. ➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. 20101206-NEWS--11-NAT-CCI-CL_-- 12/2/2010 2:21 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 Clark Reliance acquires Texas outfit wanted. Strongsville company now has an entrance into As for Oil Filtration, it needed the resources of a larger company to mining with filtration system for excavation continue growing, said co-founder and president Duke Cooper. Mr. By DAN SHINGLER and instrumentation equipment for Cooper and his partners started Oil [email protected] users that include petroleum refiner- Filtration 11 years ago from his ies. Oil Filtration makes a filtration garage, he said, and since have Clark Reliance Corp. of Strongsville system used on-site at mines and grown it into a 32-person operation. has bought Texas-based Oil Filtra- major excavation projects. The Mr. Cooper said he will remain tion Systems for an undisclosed sum, system filters fuel and lubrication with the company and continue to the two companies announced oils used by heavy machinery. head Oil Filtration as a division of today, Dec. 6. “They’re biggest penetration has Clark Reliance. Richard Solon, president and probably been in mining,” Mr. Neither of the private companies CEO of Clark Reliance, said his Solon said. “They really weren’t a discloses sales, but with more than company bought Oil Filtration competitor of ours at all.” 230 employees, Clark Reliance is because the Texas business has The transaction gives Clark much larger than Oil Filtration. Mr. technology that complements tech- Reliance an entry into the mining Solon said his company easily could nology Clark Reliance already has market. It also provides technology do another similar-size transaction, and should speed its entry into new it can offer to existing customers if the opportunity presented itself, markets. and gives it a real presence in Texas and would like to complete one or Clark Reliance makes filtration — something the company long has two such deals each year. ■
Fudge’s contributions reach many areas
■ The Crain’s compilation of Who’s our community. Who in Northeast Ohio in your Nov. LETTERS For individuals, misclassification 22 issue is missing an important often results in wage theft, because contributor in the public sector. As Awareness Month. By the way, she true independent contractors are the communications director to introduced it before First Lady not entitled to minimum wage and Congresswoman Marcia L. Fudge, I Michelle Obama came up with her overtime pay. would like to point out some things “Let’s Move” campaign. The House The National Employment Law about Rep. Fudge’s impact on the approved Rep. Fudge’s resolution Project did a study in 2009 of region that should put her on your with overwhelming bipartisan support. low-wage workers in Chicago, New radar. It galvanized community and York City and Los Angeles. It found The congresswoman is the ranking medical resources nationwide and that 26% of the workers were paid Ohio Democrat on the Science Com- led to creation of a national council less than the minimum wage in the mittee, the committee that controls of groups such as the YMCA that previous work week. Of the workers NASA’s budget. In that capacity, she continues to focus on the epidemic who worked more than 40 hours in was instrumental in obtaining a of child obesity. the previous work week, 76% were three-year moratorium on job cuts, The congresswoman was instru- not paid the required overtime rate. protecting the jobs of hundreds of mental in bringing National Science More than likely, some of these employees at NASA Glenn Research Foundation and House Science workers did not receive the minimum Center in Cleveland in the most Committee staff to Cleveland for a wage or overtime pay because they recent reauthorization bill. Technology Transfer workshop in had been misclassified. She was directly involved in striking August. Misclassification happens at all down an amendment that precluded The event attracted people from levels and in a variety of industries. all states except Texas and Florida nearly a hundred startups and estab- Misclassification particularly harms from having a shot at landing a lished companies eager for informa- low-income workers, who may be retired Shuttle Orbiter. Ohio now is tion that could help them grow. unable to pay rent, utilities, medical in the running. The congresswoman Sherwin-Williams Co. has $2 million bills and other necessary expenses and her staff worked very hard to it would not otherwise have had because they are not receiving the make this happen. (through her efforts) to conduct proper pay. In addition, workers are The congresswoman brought home research in “PaintShield,” a coating often hit with huge tax burdens $10 million in appropriations to her technology. This is a cost-effective, because an employer has not been district in the 2010 fiscal year. Almost dual-use (military and civilian) inte- withholding taxes. Thus, misclassifi- every major public institution and rior paint platform that will render cation can be linked to growing employer in Cuyahoga County is microbiological threats harmless poverty in Northeast Ohio. based in the 11th District, which upon contact. The appropriation In the community, misclassifica- includes downtown Cleveland, Mid- also is funding other R&D programs tion harms employers who are The ultimate measure town Corridor, University Circle, the (money to support jobs) at the Sherwin- playing by the rules. They cannot Cleveland Clinic, University Hospitals, Williams R&D facility in Cleveland. fairly compete against contractors John Carroll University, Case Western Finally, I would point out Ms. who enjoy an unfair cost savings of client loyalty University, Cleveland State Univer- Fudge received a higher level of from not having to pay workers’ sity and two out of three campuses support from voters (82%) than any compensation premiums, unem- of Cuyahoga Community College. other member of Congress in the ployment tax and overtime. She has directed appropriations to region, probably the state of Ohio. And — as stated briefly in the story benefit almost all of those entities I offer this for your consideration. — misclassification robs state and The Harvard Business Review says the best measure mentioned. You may not find the congress- local governments of revenue to of client loyalty is the Net Promoter Score (NPS). It’s As an example, $1.5 million was woman frequently in the headlines, which they are entitled. Government a way to understand how many companies are your “promoters,” awarded to a startup biotechnology but please know she gets things entities are losing millions of dollars not just past clients. Average companies have scores below 10. company Arteriocyte, which is devel- done for the people and employers to dishonest employers who defraud “Gold standard” companies have scores in the 70’s. oping advanced cellular therapies to in her district. the system for their own gain. improve healing of battlefield injuries In a time when Ohio has signifi- The Watkins Survey* interviewed 200+ corporate real estate Belinda Prinz for our troops. Rep. Fudge was cant budgetary problems and decision makers about their real estate service providers. Communications director instrumental in providing increased increased poverty, we cannot afford Jones Lang LaSalle was rated #1. Even better, our clients Office of Congresswoman Marcia funding for work force development to give employers who misclassify gave us an NPS of 72.1 - a “gold standard” score. In fact, L. Fudge training funds, directed through the workers a free pass. our overall NPS was double that of our closest competitor. county. On the Education and Labor Workers also suffer from Katie Laskey-Donovan Call a Jones Lang LaSalle real estate expert today. See for Committee as well as the Science Staff attorney yourself where we rank. Committee, Rep. Fudge has been a misclassification The Legal Aid Society of Cleveland ■ strong advocate for increased funding The Nov. 29, Page 3 story on the Robert J. Roe, SIOR | tel + 1 216 861 7171 for STEM (science, technology, government’s increased scrutiny of engineering and math) education for employers that misrepresent employees WRITE TO US under-represented students, namely as independent contractors focused Send your letters to: Mark Dodosh, girls, Hispanics and African-Ameri- much on the cost of misclassifica- editor, Crain’s Cleveland Business, *Source: Watkins Research Group, Inc. 2009 Business Development cans. tion to employers. More could have 700 W. St. Clair Ave., Suite 310, Opportunities Survey for Corporate Real Estate Services Providers. In her first full term, Rep. Fudge been said about the cost of misclas- Cleveland, OH 44113-1230 Used with permission of Watkins Research Group. introduced the first Childhood Obesity sification on individual workers and e-mail: [email protected]
NPS_11_30_2010.indd 1 11/30/2010 3:02:41 PM 20101206-NEWS--12-NAT-CCI-CL_-- 12/2/2010 2:20 PM Page 1
12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 Physicians’ use of social media rises, raises ethical questions
followed suit and issued know about the frustrations we go state medical association recommends During one of their first meetings, Litigation possible similar guidelines a month through,” Dr. Sevilla said. physicians create a professional page medical students are reminded of if docs’ activity later. Once he discovered that nothing for patients to join rather than “friend” their emerging identities as members The guidelines note that on the Internet is truly anonymous them on their private web sites. Dr. of the medical profession, said were to go awry sloshing into social media with the ability to trace IP addresses, Sevilla, however, said he’d accept Kathy Cole-Kelly, a professor of comes with risks by opening he halted the practice and re-tooled friend requests from his patients, family medicine and director of By TIMOTHY MAGAW the doors for liability and the idea behind the blog. He started albeit selectively, just like he chooses communication and medicine at [email protected] privacy concerns, and if to focus more on trends and using his friends outside the office. Case Western Reserve. Sevilla those lines are crossed, the blog to network with other “I’m in a small-town America,” he Ms. Cole-Kelly noted that once Dr. Michael Sevilla con- doctors could face litiga- physicians. said. “Doctors have been friends of students start working with patients, siders himself the least-anonymous tion or even jail time. And once Those anonymous blogs, however, patients even before there was the they might be inclined to post about doctor out there. something is on the web, there’s no are still out there. One run by “a few Internet. It’s not unique to social their experiences on Facebook or That might come as a surprise turning back, according to Nancy cantankerous American physi- media.” Twitter, so it’s important to remind considering Dr. Sevilla — a private Gillette, general counsel at the state cians,” for example, recently posted Dr. Boris Vinogradsky, a Cleve- them early on about the confiden- practice family physician in Salem, medical association. what they claim is a patient chart land-area private practice surgeon, tiality issues that could arise. east of Alliance — operates the “The foremost thing is that the (with the patient’s name changed to said his Facebook page hasn’t “That’s why we’re planting the “Doctor Anonymous” blog, where he damage is already done,” Ms. Mickey J. Mouse) to demonstrate presented any problems as it relates seeds at the very beginning of their highlights medical trends, industry Gillette said. “You need to think about their frustrations with new electronic to patient confidentiality. If a patient careers. That’s something they should news and the impact social media not doing those impulsive things to medical records systems. were to pose a medical question, he be mindful of at day one of medical can have on the medical field. begin with. The problem is once it’s Ms. Gillette said a thorny issue for would urge them to call his private school,” Ms. Cole-Kelly said. “Physicians do have a story to out there, it’s gotten re-tweeted doctors is whether they should number to discuss the matter in At Northeastern Ohio Universities tell,” Dr. Sevilla said. “And that’s why or forwarded to people. You lose respond to medical inquiries on blogs order not to cross any ethical or Colleges of Medicine and Pharmacy a lot of them are using (social media) control very quickly.” or other web platforms. If a patient legal boundaries. in Rootstown, faculty members to get their voice out there.” posts on his or her physician’s Dr. Vinogradsky’s blog — “Russian constantly remind their students of Social media have impacted most Best practices Facebook wall, for instance, and the Surgeon in America” — also carries the professional standards to which business sectors. But the emergence When Dr. Sevilla started his blog physician responds, an electronic a disclaimer stating any informa- they must adhere, said Dr. Elisabeth of Twitter, Facebook, blogs and in June 2006, it was — at least to his record of an exchange has been tion obtained from the blog is not a Young, the school’s associate dean other sites in the medical field has knowledge — anonymous. For about created that could be viewed as a substitute for an evaluation by a for academic affairs. Dr. Young, a spawned so much interest that the six months, he posted about experi- physician-patient relationship. health care professional. He empha- practicing physician, said it’s Ohio State Medical Association in ences with patients and the tribula- Those conversations, Ms. Gillette sized that no personal information important for medical students to October issued guidelines to help tions that come along with being a noted, should be between a physi- about his patients is “ever, ever understand the importance of not medical providers navigate the family physician. cian and the patient — not a person’s discussed in public.” discussing patients when they’re in murky ethical waters of social media. “I wanted to let the public know entire social network. As a founder of the Russian a personal environment — whether The American Medical Association what it’s like to be a doctor and to To avoid such encounters, the American Medical Association, Dr. that’s on Twitter, Facebook or, for Vinogradsky also has used Face- instance, a football game. book, his blog and other social Meanwhile, Dr. Sevilla has taken networks to connect with other social media on as his cause. Russian medical professionals who Recently, he spoke at a conference The more things change, are looking for advice about where in Hershey, Pa., where he addressed to go or who to ask about practicing what role social media can play in the more they stay the same. medicine in America. family medicine. Doctors have a “This social network really helps story to tell, the self-ascribed social a lot of people who are here in various media enthusiast noted. parts of the country who want to get As for Dr. Sevilla’s story? He still back to practicing medicine who has fun at his job. have all sorts of questions,” Dr. “When you talk to a lot of docs, a Vinogradsky said. lot of them are angry and frustrated, which I understand because we A lesson learned CM have an imperfect medical system Medical students at Case Western in United States,” Dr. Sevilla said. “I Reserve University’s School of want to portray that even though I Medicine are immersed in the issues have frustrations in my job, I still surrounding social media and health love what I do and I love seeing pa- care during their first days on campus. tients.” ■
We’ve changed our name. GET DAILY NEWS ALERTS FROM CRAIN’S! Clanco Management Corp. is now known as Register for free e-mail alerts and major news happens, you’ll know receive: CM Wealth Advisors. ■ Daily headlines: A collection of ■ The Morning Roundup: A col- Crain’s-produced news and blog lection of the day’s business news items from the day But the more things change, the more they stay the same. from Ohio’s daily papers ■ e!Cleveland: A weekly guide to ■ Breaking news alerts: When arts and leisure in Northeast Ohio Our new name refl ects our broadened capabilities, product offerings, SIGN UP NOW AT: client base and focus. But behind the new name are the same CrainsCleveland.com/register experienced partners who provide exceptional personal attention, objective counsel and custom solutions focused on growing and preserving real wealth.
CONTACT ONE OF OUR PARTNERS TO SEE WHAT WE CAN DO FOR YOU Tired of Being Screwed? Then stop hiring fly-by-night “roofing contractors” whose James W. Wert 216.831.4104 only office address is wherever their pick-up truck happens A. Chace Anderson 216.831.4106 to be parked at the time! John Paul Batt 216.831.4108 The no-insurance, irresponsible operators are driving the few Douglas J. Smorag 216.831.4105 remaining honest roofing contractors out of business. Unless the consumer gets wiser, ultimately there will be no one responsible left! We are looking for a few wise consumers. CM Wealth Advisors is a wealth management and investment If you fit the bill, call advisory firm. It serves a limited number of high net worth individuals and families, as well as foundations and endowments. 216•881•1999 www.careyroofing.com 216.831.9667 www.CMWealthAdvisors.com CAREY founded in 1946 Roofing Corp. MEMBER: National Roofing Contractors Association 20101206-NEWS--13-NAT-CCI-CL_-- 12/3/2010 2:51 PM Page 1 20101206-NEWS--14-NAT-CCI-CL_-- 12/3/2010 2:54 PM Page 1
14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010
GOING PLACES HEALTH CARE MANUFACTURING MOSKEY DENTAL LAB: Michael EATON CORP.: Julie Scheck GROUP INC. — HAWTHORN: David JOB CHANGES Lerch to prosthetics manager. Freigang to vice president, IT D. Legeay and Steven M. Appledorn operational excellence. EDUCATION to senior vice presidents and senior PARMA HOSPITAL: Dr. Ara Kallibjian to medical director, Wound Center. URBAN COMMUNITY SCHOOL: investment advisers; Bradley D. RW BECKETT CORP.: John Bohan Tom Gill to director of development. Knapp to vice president, investment SUMMA PHYSICIANS INC.: Dr. to vice president of business develop- adviser; Michael J. Monroe to vice Jay C. Williamson to chief medical ment; Brad Moore to marketing Lerch Kallibjian Williamson FINANCE president, senior wealth strategist. officer. manager; Tony Kulig to marketing coordinator. FIFTH THIRD BANK, NORTHEASTERN REA & ASSOCIATES INC.: Jeremy Senften to senior manager; Dan LEGAL OHIO: Bill Burke to vice president, MARKETING treasury management sales manager; Bialek and Kyle Johnston to senior BUCKINGHAM, DOOLITTLE & Kimberley Hoffman to vice presi- accountants. BURROUGHS LLP: Neil Bhagat to STEVENS STRATEGIC COMMUNI- dent, treasury management officer; RETIREMENT SOLUTIONS: Korey associate. CATIONS: Steve Toth to senior art Bill Jaconette to vice president, Leonhard to associate financial ROETZEL & ANDRESS: Michael J. director; David Toth to senior web director of private banking. consultant. Carey to associate. programmer. WYSE: Julie Telesz, Linda TUCKER ELLIS & WEST: Juliana Bhagat Carey Crist FINANCIAL SERVICE GOVERNMENT Crist, Erica James, Corena Bremkamp, Steve Lageson and Lane Strauss to vice presidents. BANK OF AMERICA MERRILL OHIO REHABILITATION SERVICES Larimer, Chelsea Mikula and LYNCH: Jon E. Lawrence to COMMISSION: Steven Kyman and Drew Odum to associates. associate director. Adra Smith to consumer support ULMER & BERNE LLP: Matthew T. REAL ESTATE PNC FINANCIAL SERVICES advocates. Wholey to associate. CB RICHARD ELLIS: Eric Verh to
James Larimer Mikula
Odum Freigang Telesz
Bremkamp Lageson Strauss
director of project management. KOWIT & PASSOV REAL ESTATE GROUP: Michael Weiss to retail sales agent. BOARDS ASSOCIATION OF CORPORATE COUNSEL-AMERICA, NORTHEAST OHIO CHAPTER: Woodrow Ban (PolyOne Corp.) to president; Natalie L. Peterson to vice president; Eliza- beth A. Rader to secretary; John D. Moran to treasurer.
Send information for Going Places to [email protected].
ON THE WEB Story from www.CrainsCleveland.com. Voinovich aide joins Huntington
Diane M. Downing, who has served as district director in Cleveland for retiring U.S. Sen. George Voinovich, has joined Huntington Bank’s Greater Cleveland office as senior vice president and regional manager of corporate affairs. Ms. Downing will develop strategies to expand the bank’s community involvement. She will report directly to Dan Walsh, Huntington regional president of the Greater Cleveland market. Mr. Walsh said Ms. Downing “has the kind of exceptional ex- perience we need to expand our outreach to the community in terms of dollars invested as well as volunteer opportunities for our colleagues.” 20101206-NEWS--15-NAT-CCI-CL_-- 12/2/2010 3:32 PM Page 1
DECEMBER 6 - 12, 2010 CRAIN’S CLEVELAND BUSINESS 15
INSIDE 16 ADVISER: MULL ASPECTS OF PURSUING LITIGATION. LEGAL AFFAIRS Some law firms add to ranks, footprints Mergers help to extend reach, grow new markets
By MICHELLE PARK [email protected]
hough recent years have been a time of unchanged or shrinking staff size for many law firms, some in TNortheast Ohio have spent this year striking merger deals that both increase their numbers and expand their footprints. The players include Squire, Sanders & Dempsey LLP, which announced this fall its largest merger to date with Hammonds LLP, a United Kingdom firm, and Benesch Friedlander Coplan & Aronoff LLP, which closed a deal in March to expand into Indianapolis. The activity here is reflective of an overall pickup in law firm mergers across the country, said Ward Bower, a principal of Altman Weil Inc., a Newtown Square, Pa., legal management consulting firm. Altman Weil counted an average of eight mergers during each of the first three quarters of the year. Six weeks into the fourth quarter, how- ever, it already counted nine, and SOCIAL MEDIA’S Mr. Bower expects that number to increase to 12 or 15 by year’s end. As of mid-November, Altman Weil counted 33 mergers this year, down from 53 in 2009 and roughly TANGLED WEB 60 in 2008 and roughly 70 in 2007. The firm expects more than 40 mergers to occur next year and Recent action over worker’s Facebook post about manager possibly more than 50 in 2012, Mr. Bower said. shines light on issue of employees’ actions in cyberspace “It costs money to do mergers. You’ve got to invest a lot of time and money in getting them done,” By MICHELLE PARK attorney with Walter & Haverfield LLP he explained. “During the recession, [email protected] in Cleveland. nobody wanted to be spending any In a recent example that’s gained a more cash. hey are sites where people lot of attention, the Hartford, Conn., “I think that firms are beginning “like” and “tweet” things, post office of the National Labor Relations to have some confidence,” Mr. photographs and more. Board on Oct. 27 alleged that an Bower said. “Now they’re back to However, in recent years, ambulance service illegally terminated implementing their strategy, which TFacebook, Twitter and other social media an employee who posted negative might involve geographic growth.” used by many as a means for personal comments about her supervisor on her Lateral hiring has shown signs of expression have come under the Facebook page. life, too, but the industry is seeing watchful eye of employers. The unfair labor practice complaint more inorganic growth — that from Northeast Ohio attorneys say they has called into question the right of an merger or takeover — than organic are drafting more social networking employer to control what employees growth from increased output, Mr. policies than ever before. Some of these say on social media — at least the Bower said. One reason: Organic policies restrict employees from acting matters they discuss among them- growth is more expensive. as company representatives online. selves — and underscores the impor- Growth spurts Others prohibit workers from defaming tance of careful policy-making. a company or releasing trade secrets The deal between Squire and other confidential information. First response Sanders, which has its main admin- “It seems like every week there’s The National Labor Relations Board istrative offices in Cleveland, and another news report of an employee’s action against American Medical Hammonds LLP will become effective Facebook posting getting that employee Response of Connecticut Inc. is the Jan. 1. The merger will create a firm in trouble,” said Susan Anderson, an See POLICY Page 17 of 1,275 lawyers in 37 offices in 17 countries. Squire Sanders currently See HIRE Page 16 20101206-NEWS--16-NAT-CCI-CL_-- 12/2/2010 3:32 PM Page 1
16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 LEGAL AFFAIRS
country began cutting that number Hire: Industry consolidating to manage their legal work more effectively and to control costs. Evaluate legitimacy Michael Ungar, president of the continued from PAGE 15 “Frankly, it’s a growth market, Cleveland Metropolitan Bar Associ- has 800 lawyers in 32 offices and 15 and Cleveland to this point has ation and partner with Ulmer & countries. been less of a growth market,” Mr. Berne LLP, also believes the growth of pursuing lawsuit The merger was attractive, said Kaplan said. “Chicago makes a lot of of local firms is due, in part, to the Squire Sanders chairman Jim Mai- sense. It’s close and we have clients stability and maturity of firms here. wurm, because Hammonds has that are pulling us there anyway.” People, he noted, are seeking stability. similar practice strengths and a Some firms also have posted “They look out and see some of the with another party footprint in the United Kingdom moderate growth via lateral hiring. instability that has reigned supreme and other areas of Western Europe Walter & Haverfield LLP has throughout the legal profession — places where Squire Sanders grown by about 10% a year over these past few years, and they look Scrutinize all claims to protect business wanted to be stronger. the last two years, said Ralph Cas- at the Cleveland firms and they say, An increasingly globalized world carilla, managing partner. The ‘Here’s some stability,’” he said. itigation can be unpre- is one driver of Squire Sanders’ Cleveland firm hired four attorneys Recent deals, Mr. Ungar asserted, dictable, expensive and KIMBERLYMOSES mergers, the last of which occurred in 2009 and five this year and now make it clear that law firms and distracting. And companies in 2005 with a firm with offices in employs a total of 54 attorneys. lawyers are sizing up Cleveland firms more often than not play the Florida and Latin America, Mr. Another midsize firm, Hahn as “good, solid, stable, well-run law Lrole of the “big bad defendant.” Maiwurm said. Loeser & Parks LLP, has added 6,000 firms with storied histories.” Given the general negative The firm will continue to have square feet to its Cleveland office in “That’s a good thing for Cleve- context, it is not surprising that Cleveland serve as a “nerve center of anticipation of growth and plans to land,” he said. business owners and in-house a much larger law firm,” Mr. Mai- more than double the size of its Fort Merits to merging attorneys have an overall disdain wurm said. He said he does not Myers, Fla., office when it moves the for the litigation process. expect the combination to have a Florida location in the second While mergers such as Squire Unfortunately, this natural aversion ADVISER negative impact on the firm’s quarter of 2011, said Larry Oscar, Sanders’ don’t necessarily mean has led countless companies to aban- employment in Northeast Ohio, CEO and managing partner. more lawyers are working in Cleve- don valid claims that may help them the litigation. but said he’s unsure of plans for Since January 2009, Hahn Loeser land, it’s positive for the region recover money, property or otherwise ■ Who is your defendant? At the future hiring here. has hired 43 people, including 20 when firms with a local presence advance their business interests. beginning, consider whether your Cleveland-headquartered Benesch attorneys. Twenty-three of the 43 thrive, Mr. Ungar said. Of course, not even all legitimate defendant is personally collectible Friedlander Coplan & Aronoff LLP were hired in and around Cleve- “There’s Cleveland DNA in firms claims ought to be pursued, but they and any potential recovery can be also expanded its footprint land and Akron, Mr. Oscar said. like Squire Sanders, Jones Day, Baker should be scrutinized carefully and covered by insurance. If the defen- through a combination with the Hostetler, so when they expand on Dissecting the growth treated as company assets through- dant has no money or property, any 43-person Dann Pecar Newman & a worldwide platform it’s good for out the decision-making process. resulting judgment will be worth- Kleiman in Indiana. Historically, Northeast Ohio them, and it’s good for the Cleve- The failure to do so could be tanta- less. Literally. The merger proceeded because firms have expanded geographically land legal community, generally,” mount to leaving money on the table. In addition to assessing the col- Benesch saw a “cultural fit” in the because the region was recognized he said. “It puts us on the map.” So who decides when it’s appro- lectability of the defendant, be sure core areas in which it wants to decades ago as a market that was Mr. Ungar and others say they priate to sue a vendor or service to assess whether the defendant is grow, including litigation and real unlikely to grow, Mr. Bower said. won’t be surprised to witness more provider who has done the company likely to assert a counterclaim, as well estate, said Ira Kaplan, “They had to grow elsewhere,” mergers and more acquisitions by wrong? While business owners gen- as if the defendant is likely to sue Benesch managing partner. Mr. Bower said. “They had to find Cleveland-based firms next year. erally make the ultimate decision, your company if you don’t file first. Benesch also expanded earlier markets that were growing and mar- Based on “work in the pipeline,” in-house attorneys or outside coun- In considering whether your law- this year into White Plains, N.Y., kets where they could expand.” Mr. Cascarilla is confident Walter & sel can help with analyzing the po- suit might draw a counterclaim, where it hired two attorneys and Another driver of recent merger Haverfield will continue to grow. tential impact that litigation will consider whether the counterclaim opened a small office, Mr. Kaplan activity, he explained, is the con- And Mr. Maiwurm of Squire have on the company. would be legitimate or simply a said. It currently is “taking a very solidation of legal work by clients. Sanders said the firm continues to Using a general framework of bargaining chip to facilitate a settle- hard look” at Chicago and is in Beginning roughly five years ago, look for opportunities. questions, you can better assess ment. preliminary discussions with more firms that may have used a hun- “This is not a finished product,” which claims are best resolved You and your counsel usually can ■ than one firm there. dred different law firms across the he said. “Probably will never be.” through litigation. It also can help figure out what type of counter- make your case to your executives. claim is most likely, as well as how The following highlights some defensible it is likely to be. key considerations in evaluating If the defendant is likely to sue, whether to pursue claims through consider filing first in order to control litigation. the jurisdiction and venue. And do PROFESSIONAL. ■ Are you likely to win? Simple not underestimate the positive as it sounds, first ask, “Is this a public relations that you may get winnable case?” If you do not from being the plaintiff. In an effort to address the increasing legal challenges believe your company is likely to Like it or not, if your company is facing financial professionals, Reminger has developed the win, do not file suit. the plaintiff, you are more likely to Filing a lawsuit that you recog- be viewed as the entity that was Financial Services Professional Liability Practice Group. nize from the get-go to be a roll of wronged. We handle the unique set of liability challenges facing the dice may not necessarily be a ■ Tell your executives what to financial institutions, accountants, broker/dealers, good investment. expect from the litigation process. registered representatives, investment advisors A proper feasibility analysis will Litigation has its ups and downs. and insurance agents. require an up-front investment in Explain to your company’s executives legal research and pre-suit investi- that every day will not be a good day. Services include counseling regarding professional gation. Some information gathered during The good news is that competent discovery is going to be favorable standards, business and professional ethics, outside litigation counsel can for your case and some may not. firm mergers and dissolutions. We also provide Andrew J. Dorman conduct this research and use it to Your company will receive good representation in litigation before state and prepare a complaint if the decision discovery and motion practice rul- federal courts, FINRA and other regulatory agencies. Financial Services Professional is made to file. ings, and likely some less favorable. Liability Practice Chair ■ Does the potential recovery Your executives should under- Contact Andrew Dorman with any questions you might 216.430.2169 exceed the expected expense of stand that litigation is going to have have pertaining to your professional liability. [email protected] litigation? As a general rule, litiga- intermediate roadblocks, but that tion is not well advised when the it is the long-term outcome that recovery costs are likely to exceed matters. Do not let management the recovery itself. believe that interim setbacks mean There are situations, however, that the litigation was a mistake. when this rule should be disregarded. Sometimes it makes good busi- For example, if the purpose is to ness sense to sue. But the determi- preserve a company practice, such nation should only be made after as enforcing non-competition careful consideration and following agreements or to protect an asset in a detailed discussion with your the case of patent infringement, company’s management. then the fact that the potential Careful analysis of the strengths monetary recovery is less than the of your case, the potential recovery likely costs is of less consequence. and impact on the company and its Results. Period. If the conduct at issue is some- stakeholders will facilitate whether www.reminger.com thing your company cannot ignore, it is in your company’s best interest then the amount of the potential to pursue its claim. ■ "LSPOt$JODJOOBUJtCleveland t$PMVNCVTt'U.JUDIFMMt-FYJOHUPOt-PVJTWJMMFt4BOEVTLZt5PMFEPt:PVOHTUPXO recovery becomes less critical. Consider whether there are interests, Kimberly Moses is a litigation partner other than monetary, that justify at Calfee, Halter & Griswold LLP. 20101206-NEWS--17-NAT-CCI-CL_-- 12/3/2010 2:21 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 LEGAL AFFAIRS Policy: Employers drafting guidelines Lawyers boost efforts to continued from PAGE 15 Choosing to monitor “Clearly you don’t want employees first formal complaint by the federal to be defaming you in the public,” ease ex-cons into society agency to pertain to Facebook, The marketing team of The he said. “That being said, it’s a very said board spokeswoman Nancy Cleveland Clinic does monitor fine line between free expression Cleeland. sites such as Facebook and Twitter and causing harm and damage to a By AMY ANN STOESSEL Assistance Program, a partnership According to the complaint, daily, but it monitors its own web company’s reputation.” [email protected] program of the Cleveland Metropol- when the female employee was pages, not employees’ individual SS&G, an accounting firm head- itan Bar Association’s Committee to asked by her supervisor to prepare accounts, said Paul Matsen, chief quartered in Cleveland, soon will o driver’s license. An Aid the Homeless and the Northeast an investigative report concerning marketing and communications introduce a new policy on blogging incorrect background Ohio Coalition for the Homeless. a customer complaint about her officer. Additionally, the Clinic and personal web sites, said Rebecca check. Bankruptcy. Julianne Kurdila, a chief assistant work, she asked for and was uses a third-party company to help Osborne, director of human There are all sorts of director of law for the City of denied union representation. it monitor the blogosphere. resources. With the help of lawyers, Ncomplications that might be faced Cleveland and chair of the bar asso- Later that day, the employee Mr. Matsen said the Clinic has the firm added the policy because by those re-entering society after ciation’s Justice For All committee, posted remarks on her Facebook not had problems with any of its it was updating its handbook and incarceration. said the new pro bono program was account — including one that 42,000 employees making negative because it thought it prudent to Some Northeast Ohio lawyers, initiated after the Justice For All implied her supervisor was a posts about co-workers or the provide employees guidance. however, have stepped up in recent committee was approached by the psychiatric patient — that then Clinic itself. The top priority in its The policy, which is to go into months to offer their assistance to Cleveland nonprofit Towards drew supportive responses from monitoring is patient privacy, Mr. effect about mid-December, asks those facing what often can be a Employment with a request to get her co-workers, Ms. Cleeland said. Matsen said, noting the Clinic has that those who identify themselves rocky transition back to society from more lawyers involved with issues The employee, Dawnmarie not had a problem with inappro- as SS&G employees on online social the criminal justice system. surrounding re-entry. Souza, was terminated in late 2009 priate posts about patients either. sites make it clear that the views on “They’re facing lots and lots of Ultimately, Ms. Kurdila said the for her postings because they vio- Charles Billington, an attorney their pages are theirs only. Addi- obstacles,” said Brian Lamb, a aim of the clinics is to assist with lated the company’s Internet poli- for Vorys, Sater, Seymour and tionally, it prohibits employees partner at Thompson Hine. “If you the legal obstacles facing the cies, the complaint states. Pease LLP, said he sees clients from disclosing confidential or can remove the legal ones, you are re-entry population such as finan- The regional National Labor monitoring sites to protect copy- proprietary information and from drastically improving their cial, child support and expunge- Relations Board office found that the rights and control the use of com- making defamatory or discrimina- chances of success.” ment issues. But, she noted, “We woman’s Facebook posts were pro- pany names and logos. He said he tory statements about SS&G To that end, the Cleveland are just one spoke in the wheel.” tected under federal law that allows also is aware of local examples in employees, partners and clients. Metropolitan Bar Association has Concurrent to the clinics, employees to discuss the terms and which employees were disciplined Some attorneys were hesitant to started hosting pro bono advice Thompson Hine’s Mr. Lamb also is conditions of their employment with after they called in “dead sick” and opine on the recent complaint issued clinics at the North Star Neighbor- behind a more grassroots effort co-workers. The complaint requests later revealed the contrary online. by the National Labor Relations hood Reentry Resource Center, known as the Cleveland Lawyers’ the employer be required to pay Ms. One risk in employers monitoring Board, noting that no final decision which is operated by the Oriana Initiative on Reentry. Souza interest on any back pay and Facebook and the like is that online has been made. A regional hearing House on East 55th Street in Cleveland. Mr. Lamb, who is on the board of other awards. pages can be created by anyone in on the case is scheduled for Jan. 25. In all, nearly 60 people have Towards Employment, has brought Asked if he’s had clients who’ve anyone’s name, said Jason Morris, Though it’s unclear what the been seen during four intake together about 25 attorneys to fur- clashed with employees over social president of EmployeeScreenIQ, a outcome will be, Ms. Anderson said clinics, with more than 15 coming ther tackle re-entry issues. media, Seth Briskin of Meyers, Cleveland-headquartered employ- employers need to scrutinize their to the first one in August. Sessions In addition to volunteering to Roman, Friedberg & Lewis in ment screening firm. social networking policies now. are scheduled through July, and staff the advice clinics, Mr. Lamb Beachwood said one Northeast Also, Mr. Morris noted, cracking “This is a very fluid area of law the clinics on average have been and his initiative have hopes for an Ohio client discovered last spring down on employees for what they right now,” she said. “The best step staffed with two to three attorneys employer awareness seminar in that an employee not only identi- say on social networking sites — for employers is to make sure they and one law student. the spring and are aiming to set up fied on her Facebook page the com- beyond possibly drawing the atten- do have policies in place, but to The North Star advice clinics, a system that would enable ex- pany she worked for, but included tion of the National Labor Relations be cognizant of the fact that with which are targeted toward those offenders to review their own information on “very adult, erotic Board — can prove to be “a major each day there could be changes with re-entry issues, were modeled background checks for errors. activities” she participated in, PR nightmare” for companies. that affect the content of those after those already held through the “The main thing we’re doing is ■ ■ complete with “racy pictures.” Putting it into policy policies.” Cleveland Homeless Legal trying to collaborate,” he said. “It had come back to (the company) from a customer, and it Mr. Briskin said he’s drafted did not look good,” he said. probably a dozen policies this year The company, which Mr. Briskin that tackle social media; other declined to identify, asked the local attorneys cited similar woman to remove the company numbers. Many say the policies Go for it. We’ve got your back. mention. The woman obliged and often require employees to follow continues to work there. other company policies while on “None of my clients spend their social media, for example, not At Roetzel, our attorneys are like our clients - entrepreneurial, days thinking of ways to pry into harassing or intimidating others. innovative and results-oriented. Just ask Lewis Adkins, Jr. personal lives,” he said. “It’s only However, employers may not when something goes wrong, or restrict employees’ ability to discuss when they hear something, that they the terms and conditions of their will look into it.” work, Mr. Briskin emphasized.
PlayhouseSquare Real Estate Services is pleased to have
Our Northeast Ohio team of attorneys focuses on maximizing opportunities and minimizing risks so you can focus on your business. Team members Roger Stevenson, 4IBOF'BSPMJOP, continue their tenancy in the Hanna Building .FHBO'BVTU, George Rooney, Jr. and -FXJT"ELJOT +S have your back.
Thank you for your continuing To learn more, call Lewis directly at 216.615.4842 commitment to our neighborhood. or visit ralaw.com.
REAL ESTATE SERVICES
1501 Euclid Avenue, Cleveland, OH 44115 NEW YORK 216-623-6606 PlayhouseSquareRealEstate.com 8"4)*/(50/ %$t t$-&7&-"/%t$0-6.#64t",30/t$*/$*//"5* 50-&%0t'035.:&34t/"1-&4t03-"/%0t5"--")"44&&t'035-"6%&3%"-& 20101206-NEWS--18-NAT-CCI-CL_-- 12/3/2010 2:22 PM Page 1
18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 LEGAL AFFAIRS Patent reform may have ‘no clear-cut winner’ Reform Act of 2010, currently in That’s not to say each company in But some worry rules the Senate — is telling. Northeast Ohio will be affected the “We have all kinds of ideas all the time, but it we filed may stall advancement, “It’s going to make getting a same way. Area patent attorneys say them all, we’d go broke.” patent incredibly more expensive, there is no one-size-fits-all effect. add more costs to process and once you have the patent, it’s “There is no clear-cut winner,” – William Whittenberger going to be worthless,” said Mr. said David Cupar, the co-chair of president, Catacel Corp. Schmidt, who said the patents he the intellectual property practice By JOEL HAMMOND has obtained have cost anywhere at McDonald Hopkins LLC. “The A little more certainty lost profits,” he said. On the other hand, proving com- [email protected] from $10,000 to $50,000. No. 1 objective is to harmonize The legislation, backed by a petitive injury also may help root out But that figure would rise under laws with the rest of the world.” bipartisan group of 25 senators, claims by non-practicing entities, or y no means does Bob the proposed legislation, which But the increasing costs of doing including U.S. Sen. Sherrod Brown what Ms. Dortenzo calls the “ambu- Schmidt, the chairman of a offers more road blocks, Mr. business also concern William of Avon, likely will not move much lance chasers” of intellectual proper- group of Northeast Ohio Schmidt said. The legislation Whittenberger, the president of from its spot in the Senate during ty law. She said those firms don’t medical device companies, provides a more formal opposition Garrettsville-based Catacel Corp., the current lame-duck session. That Bthink the United States’ existing produce anything; instead, they ob- period, more commonly known as which makes heat-exchanging doesn’t mean it won’t eventually pass, tain patents and file lawsuits against patent laws are perfect. post-grant review. That process, materials and catalyst supports though. Mr. Cupar said, similar to anyone who comes near them. Obtaining a patent is an arduous, which takes place after a patent is that enable breakthroughs in pro- prior legislation, this bill likely will That competitive injury require- time-consuming process, one that granted, allows challenges from duction and energy efficiency. The pass at some point over the next ment also would apply to false for Mr. Schmidt’s companies — competitors or, as Mr. Schmidt company owns 22 issued patents two-year congressional term. marking, another focal point of the including Cleveland Medical fears, anyone — foreign govern- and has more than 20 others pending Mr. Cupar and other Northeast reform act. Devices, Orbital Research Inc., ments, large corporations — looking in the U.S. Patent Office. Ohio patent attorneys, who agree Currently under the false NeuroWave Systems and Flocel Inc. to increase a patent holder’s costs. “I have to make sure it’s worth the the process is costly, point to marking statute, anyone — not just — has taken as long as six years. Post-grant review takes place cost of filing the patent,” he said. greater predictability provided by competitors, but any Joe Jones or Mr. Schmidt said he owns 40 after an earlier review, often referred “We have all kinds of ideas all the the proposed changes. Jane Smith — can sue for false patents, with another 60 working to as issuance of prior art, that cur- time, but if we filed them all, we’d go “Patent cases have become very marking, meaning someone can their way through the U.S. Patent rently is in place and will remain. broke.” expensive, and protecting resources find a dozen pairs of headphones, Office, many of which have been All that, Mr. Schmidt says, will “(The current rules are) a bit of a and research and development has each marked with a “This product there upwards of six years. prevent companies like his from morass. There are a lot of patents become an unpredictable process,” is covered by Patent Y” disclaimer, Mr. Schmidt’s vehement opposi- obtaining the angel and venture out there. You can spend an awful said Josh Ryland, a partner in the and then seek $500 per occurrence tion, then, to pending patent capital funding necessary to move lot of time searching, and get scared intellectual property and patent if that patent no longer is valid. reform legislation — the Patent forward with their next idea. to death.” litigation groups in the Cleveland “Many lawyers are going through office of Taft Stettinius & Hollister Walmart shelves and finding LLP. “In the time since the last over- things with expired patents, then haul, we’ve had game-changing suing,” Ms. Dortenzo said. “This technology, and we need to put the would put parameters on that. Not proper incentives on protecting it.” just anyone would be able to sue.” Damages have garnered a lot of attention in this reform bill. Proof Leave the money of willful infringement now would be necessary for enhanced damage One area on which many will be awards, limiting the amount par- keeping an eye is appropriations of ties alleging patent infringement the United States Patent Office’s could seek without justification. funding, now in limbo because of The legislation won’t cap damages, Republicans’ new control of U.S. so if a company can prove a House of Representatives. massive competitive injury, it’s Ms. Dortenzo wonders if Repub- entitled to what a jury awards. licans, battling with President “You’re going to have to prove lost Obama, will restrict his ability to profits, not just throw numbers out reappropriate to the general fund there,” said Megan Dortenzo, the excess funds in the patent office. intellectual property group prac- That would be music to Mr. tice leader at Thompson Hine LLP. Schmidt’s ears. But proving that competitive “They’re taking money out of this injury, and its scale, is another area wealth creation mechanism and that concerns Mr. Schmidt. using it to pay for wars and Social “I’ve spent $250,000 to $500,000 Security,” he said. “The office is un- on a patent, and now I have to derpaid, there are not enough exam- spend thousands more on an iners. The fees I pay for a patent attorney at $400 an hour to prove amount to an invention tax.” ■ BUSINESS. Commercial Banking is our business.
LIBERTYLIBERTY BANK,BANK, N.A.N.A.
MEMBER FDIC BEACHWOOD HQ 216.359.5500 Building our bank one quality relationship at a time. 20101206-NEWS--19-NAT-CCI-CL_-- 12/3/2010 8:24 AM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 LARGEST OFFICE LEASES RANKED BY SQUARE FEET
Address Rank Building City, Zip Square feet Tenant Tenant representative Landlord representative 1403 E. Sixth St. 1 Calfee Building Cleveland, 44113 115,417 Calfee, Halter & Griswold LLP The Gatto Group Inc. NA 4125 Highlander Parkway 2 Stonegate Corporate Center I Richfield, 44286 83,370 Cisco Jones Lang LaSalle NA 629 Euclid Ave. 3 Rosetta Center Cleveland, 44114 80,713 Rosetta Grubb & Ellis NA 800 Superior Ave. 4 KeyBank Center Cleveland, 44114 55,523 KeyBank Jones Lang LaSalle NA 5 3656 Massillon Road Uniontown, 44685 52,000 InfoCision Management Corp. NAI Cummins NAI Cummins 6 6225 Oaktree Blvd. Independence, 44131 41,442 Goodrich Corp. Ostendorf-Morris Co. Ostendorf-Morris Co. Partners National Real Estate 7 1925 Enterprise Parkway Twinsburg, 44087 37,450 Windstream Communications Inc. Group Grubb & Ellis 1660 W. Second St. 8 Skylight Office Tower Cleveland, 44113 34,100 GSA Studley CB Richard Ellis 4800 E. 131 St. 9 Pioneer Building Garfield Heights, 44125 34,055 Solid Waste Management Cuyahoga County NA Dalad Realty 1001 Lakeside Ave. 10 North Point Tower Cleveland, 44114 32,900 CGI Technology & Solutions Inc. CB Richard Ellis CB Richard Ellis 11 29000 Aurora Road Solon, 44139 32,500 Cleveland Clinic Foundation CB Richard Ellis Midwest Real Estate 12 4600 Northfield Road North Randall, 44128 30,000 NA NA Seiger Realty 1367 E. Sixth St. 13 Lincoln Building Cleveland, 44114 29,683 Oswald Cos. Jones Lang LaSalle NA 6100 Oak Tree Blvd. 14 Park Center Plaza I Independence, 44131 28,300 U.S. General Services Administration Jones Lang LaSalle CB Richard Ellis 388 S. Main St. 15 AES Business Campus Akron, 44311 27,275 Pathways to Success NA Schipper Group Ltd. 16 2500 Enterprise Pkwy. Twinsburg, 44087 26,128 Experient Ostendorf-Morris Co. Chartwell Group 17 8249 Mohawk Drive Strongsville, 44136 25,200 Enterprise Rent-A-Car CB Richard Ellis Carnegie Development 1701 E. 12th St. 18 Reserve Square Cleveland, 44114 25,000 Southwestern Acquisition LLC NA Ostendorf-Morris Co. 3401 Enterprise Parkway 19 Enterprise Place Beachwood, 44122 24,413 University of Phoenix Allegro Realty Advisors Ltd. Goldberg Cos. 6770 W. Snowville Road 20 Southpointe Corporate Center Brecksville, 44141 23,541 NVR Mortgage Finance Inc. Jones Lang LaSalle Dalad Realty 1500 W. Third St. 21 MK Ferguson Plaza Cleveland, 44115 22,434 SP Data LLC Grubb & Ellis CB Richard Ellis 1468 W. Ninth St. 22 Western Reserve Building Cleveland, 44113 22,038 KA Inc. Allegro Realty Advisors Ltd. NA 6095 Parkland Blvd. 23 Eastpoint II mayfield heights, 44124 21,869 The Austin Co. Jones Lang LaSalle NA 6050 Oak Tree Blvd. 24 Park Center Plaza III Independence, 44131 21,549 Farmers Insurance Jones Lang LaSalle CB Richard Ellis 24701 Euclid Ave. 25 Euclid Building Euclid, 44117 21,200 University Hospitals NA CB Richard Ellis 1301 E. Ninth St. 26 Tower at Erieview Cleveland, 44114 20,736 Wells Fargo Jones Lang LaSalle NA 6060 Rockside Woods Blvd. 27 Spectrum Building Independence, 44131 19,997 The Cleveland Clinic NA Dalad Realty 1375 E. Ninth St. 28 One Cleveland Center Cleveland, 44114 19,855 Attevo Inc. Jones Lang LaSalle CB Richard Ellis 1375 E. Ninth St. 29 One Cleveland Center Cleveland, 44114 19,270 Mannion & Gray Co. Chartwell Group LLC Gatto Group Inc. 5005 Rockside Road Bureau of Alcohol, Tobacco, Firearms and 30 Crown Centre 1 Independence, 44131 18,902 Explosives Jones Lang LaSalle Cresco Real Estate 14955 Sprague Road Pinnacle Real Estate 31 Sprague Center Strongsville, 44136 18,800 National Automotive Experts Services CB Richard Ellis 23905 Mercantile Road 32 Aclara Beachwood, 44122 18,695 Tremco Ostendorf-Morris Co. Ostendorf-Morris Co. 1367 E. Sixth St. 33 Lincoln Building Cleveland, 44114 18,000 The Renaissance Group Breen & Co. Breen & Co. 1525 Rockwell Ave. 34 Cleveland Technology Center Cleveland, 44114 16,800 XO Communications Jones Lang LaSalle NA 35 700 Beta Drive Mayfield Village, 44143 16,181 Health 360 Group LLC Grubb & Ellis NA 28601 Chagrin Blvd. 36 Eton Tower Woodmere, 44122 15,472 Meyers, Roman, Friedberg and Lewis LPA Ostendorf-Morris Co. NA 9885 Rockside Road 37 Highpointe Corporate Park Valley View, 44125 15,240 M & S Media Inc. Acadia Holdings Grubb & Ellis 1366-1370 Market Ave. N. 38 Webster Square Canton, 44714 15,136 Stark County Community Action Agency NA REM Commercial 3634 Euclid Ave. 39 Midtown Square Cleveland, 44115 15,043 Cleveland Center for Arts and Technology NA Ostendorf-Morris Co. 40 8001 E. Pleasant Valley Road Independence, 44131 14,000 NA NA NA 25111-25221 Country Club Blvd. 41 Great Northern Tech I North Olmsted, 44070 13,267 First Data Jones Lang LaSalle Amicus Holdings Ltd. 42 5700 Darrow Road Hudson, 44236 13,210 Beauty Systems Group LLC The King Group Davis Development 24701 Euclid Ave. 43 Euclid Building Cleveland, 44117 12,800 University Hospitals Grubb & Ellis CB Richard Ellis Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our RESEARCHED BY Deborah W. Hillyer lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. Source: Information provided by CoStar Group Inc. www.costar.com and the tenant and landlord representatives. Information is for Cuyahoga, Geauga, Lake, Lorain, Mahoning, Medina, Portage, Stark and Summit counties for Oct. 1, 2009, through Sept. 30, 2010 and includes new leases. 20101206-NEWS--20-NAT-CCI-CL_-- 12/3/2010 2:21 PM Page 1
20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010
ON THE WEB Story from GCP: Visitors bureau’s future locale unclear www.CrainsCleveland.com.
continued from PAGE 1 Mr. Gilbert said the two domain of Cleveland Cavaliers In recent months, talk in the real to discuss his organiza- organizations have not yet owner Dan Gilbert, is exploring the estate community was that GCP K&D Group tion’s new home until a chosen a new headquar- idea of opening what’s called a would end up in the Playhouse- final deal is signed, but two ters but should resolve “Phase I casino” in the lower levels Square area, though some hoped sources said the group their plans early next of the Higbee Building to bring the organization would end up brings on CFO intends to move to what is year. Positively Cleveland gambling to Cleveland as quickly closer to the East Ninth Street and K&D Group, the apartment now called the LS Brand has about 35 employees as possible. Design work is under Euclid Avenue area, where it could and hotel developer based Building. The sources, one and the sports commis- way for a permanent casino have kicked off revitalization of in Willoughby, named Steven in the real estate business, GCP president sion employs 11 in an building, or Phase II, along the that part of downtown. Osgood, a financial executive with the other associated with Joe Roman office in Terminal Tower Cuyahoga River behind Tower City Last May, Mr. Roman said he strong banking relationships and one of the organizations on Public Square. Center. was notified by Forest City Enter- public company experience, to a involved in the shuffle, asked not to The ground-floor space in the The permanent building is not prises Inc., his Higbee Building newly created position as its chief be indentified because of their Higbee Building that Positively expected to be completed until landlord, that he should start looking financial officer. proximity to the deal. Cleveland occupies has provided a 2013. A temporary casino in the for new space. K&D CEO Douglas Price said the Positively Cleveland will move highly visible location for its tourist existing Higbee Building would be GCP and Positively Cleveland company has no current plans to go separately and will share space center. It likely will be looking for able to open sooner. moved in 2007 into the Higbee public. However, he said Mr. Osgood with the Greater Cleveland Sports space that offers the same visibility While Mr. Gilbert hasn’t com- Building from Terminal Tower. has experience guiding companies Commission. On Jan. 1, sports and foot traffic. mitted to the Phase I casino, Rock Forest City also owns Terminal through initial public offerings that commission president David Ventures spokeswoman Jennifer Tower and Tower City Center. ■ A casino cometh could be valuable if forming a real Gilbert will add the presidency of Kulczycki said the company “is still estate investment trust becomes Positively Cleveland to his business Cleveland casino developer moving forward in its assessment Senior reporter Stan Bullard con- part of K&D’s plans. — Stan Bullard card. Rock Ventures LLC, a part of the of the opportunity.” tributed to this story.
Contact: Genny Donley Copy Deadline: Wednesdays @ 2:00 p.m. Phone: (216) 771-5172 All Ads Pre-Paid: Check or Credit Card Fax: (216) 694-4264 E-mail: [email protected] REAL ESTATE AUCTION OFFICE SPACE FOR SALE
For Sale Rocky River FOR LEASE Water Park, Go-Cart and Mini Real Estate Auction Beachcliff Area RESTAURANT/BAR/RETAIL December 15, 2010, 11:00 AM LEASE - ROCKY RIVER Golf Complex - Port Clinton, Ohio Ashland Lakes - Court Ordered Sale between Detroit & Lake This 33 acre site contains four pools with several water features, a mini Auction Site: golf course, Bumper Boat pond and Go-Cart Track. The property contains 440-333-0000 EXT.777 five outbuildings that house arcade games, kitchen facilities, office, 170 Summerset Dr., Ashland OH locker rooms and storage. All equipment and fixtures are still intact and • 130 Total sell with the property. There are 17 acres of the site that are available for Classified Ads future expansion. Many upgrades and maintenance items were done in Acres Newer A1, 18800 sq ft, 60+parking 440-333-0000x777 WORK! 2010 and the park is in operating condition. This is a great opportunity to • 5 Parcels purchase a turn-key business in the vacation heartland of Lake Erie, •(8) Brick Marblehead and Catawba Island at a fraction of the cost to build. Triplexes ATTENTION: For additional information or to view this property: • Lakes, Barn Get your Classified /Real Estate Ad in Crain’s Big Year End Contact Dean Miller at 419-483-7340 • Single Family Book of Lists Double Issue! Homes List your Industrial, commercial Visit Our Web Site For Details • Issue Date : 12/20/2010 • Deadline Date: Mon. 12/13 @ Noon or Retail Space Here! Bambeck Auctioneers Inc. www.bambeck.com Contact Genny Donley @ 216.771.5172 Contact Genny Donley at 216.771-5172 CLASSIFIED BUSINESS SERVICES SUSTAINABILITY Order your holiday Centerline Drafting Service Landerhaven ATTENTION turkey now – Solid Modeling, Design & Drafting BUSINESS SERVICE OWNERS! Solid chocolate, of course! Floral + Decor Attn: CEOs & CFOs Serving Small Business on an Brandt’s Candies as needed basis since 1995 Available Submit your business card to promote your service and Tired of high Homemade Hand Dipped Chocolates receive a SUBSTANTIAL DISCOUNT off your ad price. 330-225-6053 440.449.0700 electric bills? 1238 Lost Nation Road, Willoughby, OH 44094 440-942-1016 ~ www.brandtscandies.com www.CenterlineDraftingService.com ExecutiveCaterers.com To find out more, contact Genny Donley at 216.771.5172 Save 50-70% on your lighting energy costs FLYNN Crain’s Executive Recruiter GUARANTEED! ENVIRONMENTAL s FREE no-risk analysis For Assessments s No disruption to your (800) 690-9409 BIZDOM U operation Bizdom U, the nationally recognized entrepreneurship s 40K sq. ft. minimum www.flynnenvironmental.com boot camp founded by Dan Gilbert has announced it will open Looking for brains? s Payback in 12-24 months in downtown Cleveland. Tremendous opportunity to play a key role in a dynamic entrepreneurial nonprofit training program. BUSINESS Now hiring well-qualified individuals to join our Bizdom Cleve- CALL CRAIN’S FOR SALE land leadership team for the following positions: • Training Leader • Recruiter • Administrative Coordinator Call Genny Donley for NEW Special Selling A Business? For more information and to apply, go to www.bizdom.com/apply Executive Recruitment rates! Why wait? Call today! Ohio Business Brokers Assoc. 330-931-3905 WWW.OBBA.ORG www.ROI-Energy.com Find hundreds of businesses. (216) 771-5172 Find a good broker to help. Buying A Business? 20101206-NEWS--21-NAT-CCI-CL_-- 12/3/2010 3:59 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21
Banks: Regulations often can be suffocating Small bank
continued from PAGE 3 Ohio’s smaller banks indicate they’re ern Reserve Bank, Mr. McKeon said, $900 million. consolidation “If you’re not making money today, not about to give up their indepen- noting he has no interest in deals, Banks that provide the services chances are with financial reform dence. particularly after the bank’s stock customers demand and that diver- now tradition … it’s unlikely you’re going to be “was just hammered” and is now sify their offerings can take on larger Sell? ‘No, thanks’ The expected consolidation of able to make it work tomorrow,” nearly $10 a share from $32 in May institutions just as a small choco- smaller banks amid tighter Mr. Duncan said. “I think that, real- During the past three or four 2007. He also has no plans to hire latier such as Malley’s can compete industry regulation would be in istically, some of the community months, Western Reserve Bank, a more people to handle the new with Godiva, said Mr. Fedeli, who keeping with an ongoing trend. banks are going to come to the bank with $200 million in assets regulation; instead, he said, “we also is a Park View board member. In December 1992, the conclusion: ‘Let’s put a for-sale sign and locations in Brecksville and will have to learn it.” Those that don’t will be “dinosaurs,” Federal Deposit Insurance Corp. up.’” Medina, has been asked by three he said — “potential targets for A freeze likely to thaw collected data from more than One challenge affecting small investment banking entities to dis- other banks to pick up market 13,800 banks nationwide — banks disproportionately is the cuss merger opportunities, said Ed Portage Community Bank does share” or “statistics” of bank failure. nearly double the 7,760 institu- manpower it could take to navigate McKeon, president and CEO. Each plan to hire staff to handle new Some local bankers see opportu- tions reporting as of Sept. 30 this a more heavily regulated industry. time he’s brought such requests to compliance demands. After a two- nity amid the challenges. year. Those numbers included Whereas large banks have dozens the board, Mr. McKeon said, “Our year hiring freeze, the bank already Mr. Duncan of Ohio Commerce 453 Ohio banks in December of compliance officers to grapple response has been: ‘No, thanks.’ has reassigned some duties to Bank predicts as smaller banks are 1992 and 240 Ohio banks in with new regulations, smaller “(The media) all say the same “leverage the people we’ve got,” acquired and larger banks institute September of this year. banks don’t, Mr. Chessen said. thing, that the community banks and Mr. Coe anticipates hiring up fees to make up lost income, business Much of the consolidation was Take Portage Community Bank, are in trouble with more regula- to five people over the next three owners will look to bank elsewhere. the result of change in the mid- a two-branch bank with $250 tion,” Mr. McKeon said. “Look, years. Larger banks likely won’t “We’re looking forward to the 1990s that allowed interstate million in assets. It reported to the we’ll figure out a way to do it. … I need to increase their staffs by 10% merger and acquisition activity,” he banking, said James Chessen, Federal Deposit Insurance Corp. just don’t know how.” like his bank, he noted. said. “Certain customers (will) look chief economist for the Ameri- that it employed 48 full-time equiv- The disappearance of some Yet despite what likely will be a for alternatives, and that’s what we can Bankers Association. alent employees as of Sept. 30. One small banks may be influenced less higher cost of doing business, are: an alternative.” Mike Van Buskirk, president of staffer is a compliance officer, CEO by rising costs and more by rising Portage Community Bank isn’t Community banks can capitalize the Ohio Bankers League, cites Rick Coe said, though he noted that frustration among managers and looking to merge with another on the displacement going on, another reason: the way banks other employees, including branch board members with the mechanics bank, Mr. Coe noted.“We can see agreed Daniel E. Klimas, president have been “buried with layer managers and mortgage originators, of running the business, according the changes, we can see those costs, and CEO of Lorain National Bank after layer after layer of uncoor- share in the compliance responsi- to Mr. McKeon. He said he now but as long as we continue to have and its parent, LNB Bancorp Inc. dinated, often redundant, often bility. spends two to three times the our eye on the customer, we will be Lorain National, Mr. Klimas said, is contradictory regulation.” Charlie Crowley, managing direc- amount of time he once did dealing able to weather that through,” Mr. “certainly willing to look at oppor- Merger-and-acquisition activity tor of Paragon Capital Group LLC., with regulation and regulators. His Coe predicted. “There’s a need for tunities to acquire other organiza- among banks and thrifts has an investment banking firm in aggravation level, he admits, is “off community banks, and I don’t tions” as long as such actions make been lower since 2008 than it Mayfield Heights that provides the charts.” think that will ever change.” sense for the bank’s shareholders. was between 2000 and 2007, merger advisory services to banks, “Like most small bankers, I am Longtime bank investor Umberto Mr. Klimas is one of many who when an average of 262 deals said most small banks “were not really running a bank for the P. Fedeli agreed. hope regulators will tailor new were announced per year, victims of the financial meltdown customers and the shareholders,” regulations to the risk and size of Dinosaurs won’t survive according to research firm SNL — they were not causes of it.” he said. “I’m running a bank for the institutions. Financial. The data reveals that “And yet now they’re all paying regulations and regulators. “Small banks that do a good job “It’s much more difficult to 144 deals were announced in the price” of the giant banks’ indis- “After a while, when you spend a with products, services ... will not implement (regulations) that way 2008, 120 in 2009 and 159 as cretions, said Mr. Crowley, who higher and higher percentage of be a thing of the past,” predicted than to create a generic solution of Nov. 23, 2010. noted that in addition to higher your time dealing with this stuff … Mr. Fedeli, who said he is the single and apply it across the board,” Mr. Insiders predict M&A activity compliance costs, there also are many bankers and boards say, ‘You largest shareholder in the parent Klimas acknowledged. “But we’re won’t pick up here, at least ini- higher FDIC insurance premiums know what? Life’s too short. Let’s companies of Lorain National hopeful there will be a thoughtful tially, because the region isn’t to be paid. sell the bank. Let’s merge it,’” Mr. Bank, with assets of more than $1.1 approach to implementing the home to as many small banks Despite these potential hurdles, McKeon said. billion, and Park View Federal (Dodd-Frank) bill based on each of as other parts of the country. executives of some of Northeast There are no such plans for West- Savings Bank, with assets of nearly our unique situations.” ■
and you’re looking at cutting costs, nies’ plans is evident to Ms. Lessick Parties: Lavish bonanzas a thing of the past guess what? Holiday parties and of The Corner Alley, who estimated things that aren’t absolutely crucial 75% of party budgets remain about to the business are things that get half what they were in better continued from PAGE 3 cut,” Mr. Clarke said. economic years. Some companies have nixed the open bar and no Nick Borelli, marketing director of The surveys say … Executive Caterers at Landerhaven, longer are inviting employees to said the big event center in Mayfield Of the 136 Northeast Ohio bring spouses and guests, she said. Heights is seeing a 20% year-over- employers responding to the Holi- Mr. Borelli of Executive Caterers year increase in the number of day Practices Survey conducted by likewise sees the spending shift. He corporate holiday parties booked. the Employers Resource Council said the “whole crazy seafood buffet But while some companies that (ERC) in Mayfield Village, 71% said with — you name it — lobster, crab bowed out last year are back in party- they are planning holiday parties legs, shrimp all over the place” — is planning mode, few gatherings will this year, off slightly from 73% in being replaced by plated dinners of be ostentatious. 2009. Among those respondents, beef and chicken. Perhaps, then, Great “I don’t think that putting on the 61% said they were budgeting the Lakes Brewing Co. is an anomaly. lavish party for the employee is same for their parties as last year, It’s not just that Cleveland’s best- going to be the case ever again,” Mr. while 5% said they were budgeting known microbrewer has continued Borelli said. “If you didn’t give every- less and an equal percentage said its off-site holiday parties for its 140- one a raise (and) then you have that they were budgeting more. person staff; it also has maintained, party … every drink they have, every That’s better than 2009, when if not increased, its party budget, steak they have, they think to them- 36% said they were budgeting the which totals thousands of dollars, selves, ‘This could have been my same, 35% said less and 2% said and continues to give year-end raise. This could have been the more. The 2010 survey by the New bonuses, too, said Michelle Belviso, person we let go.’” York executive search firm Amrop human resources generalist. While Mary Lessick does not Battalia Winston revealed the “We have been successfully anticipate a better year than 2008, “worst holiday party slump” in the growing our business over the the director of sales and marketing national survey’s 22-year history. course of the last several years for The Corner Alley expects to do Conducted in September and October, despite the economy,” Ms. Belviso more in sales this year than in 2009 Both Mr. Borelli and Ms. Lessick families — and even the community the survey was answered by 103 said. “(The party) allows everybody despite fewer bookings at the popu- also noted this trend: It’s early De- — to enjoy cider, cookies and Santa of “America’s leading businesses,” to celebrate a year well done.” lar bowling alley and banquet hall in cember, and the phone still is ringing. Claus on Dec. 12 at its corporate according to a company release. Panther Expedited Services also downtown Cleveland’s East Fourth “Now I think companies wait for offices. Seventy-nine percent of busi- has continued to reward employees neighborhood. their second- and third-quarter “Obviously the economy is better, nesses were planning some type of with performance-based bonuses, Ms. Lessick said the number of reports to come out, and then in the and our performance is better,” said holiday celebration — down from Mr. Clarke noted. company parties booked thus far for fourth quarter they decide if they Andrew Clarke, president and CEO 81% in both 2009 and 2008. Like the This was the first year the ERC December is roughly half the 260- have the money to spend,” Ms. Lessick of Panther, which moves freight by local survey, the national survey included in its survey a question plus in December 2008 and is 50 said. Such last-minute planning was air, ocean and ground. “The type of found 61% of the companies that about bonuses, said Marty Mordarski, fewer than last year’s 172. However, unheard of in years past, she noted. party that we’re having is certainly host parties will do so at the same director of research and member- she said some companies have made After suspending its holiday party reflective (of the times). It’s not like level as past years. ship. Thirty-two percent of employers in 2008 and 2009, Panther Expedited it’s 2006, 2007, and everyone’s responding said they’re planning to pricier menu selections than they The party isn’t over for all dared to last year, which will boost Services in Seville is inviting its having rather lavish holiday parties. give employees bonuses this year at revenue. more than 300 employees and their “When the economy is rougher The recession’s blow to compa- an average amount of $712. ■ 20101206-NEWS--22-NAT-CCI-CL_-- 12/3/2010 2:20 PM Page 1
22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 6 - 12, 2010 Stocks: Many companies’ prices stay true to cyclical nature continued from PAGE 1 BIG BOOSTS Mr. Luce said. For example, specialty chemical The Northeastern Ohio Index is weighted, so the area public companies whose maker Lubrizol Corp. saw its stock stock prices are highest have the biggest impact. Here’s four: price as of last Tuesday rise by 320% Nov. 30, March 9, since March 9, 2009, while Nacco Company Weight Change Industries Inc., a supplier of lift ’10 price ’09 price trucks and coal, realized an increase Lubrizol Corp. 7.06% $104.56 $24.89 320% of 611% over the same period. Those companies, as well as diversified Nacco Industries Inc. 6.60 92.61 13.03 611 manufacturers Eaton Corp. and Eaton Corp. 6.48 96.40 28.59 237 Parker Hannifin Corp., boosted the index because they had big gains Parker Hannifin Corp. 5.43 80.23 27.01 197 and were heavily weighted in the index, Mr. Luce said. in Bath. “They tend to get hurt the also bouncing back more.” most in a downturn, especially Nonetheless, most of these same Bouncing the region’s way when that downturn is because of companies now have come close to, The index probably does not owe concerns about economic growth. and in some cases have eclipsed, their its recent success to Northeast Ohio Conversely, they tend to benefit the pre-recession price levels. For exam- CEOs being any smarter than their most when those fears are allayed.” ple, Nordson Corp., a maker of auto- counterparts elsewhere. It’s more a That tendency has been true so mated spraying equipment, recently matter of the economic sectors in far for local manufacturing companies topped $80 a share — more than $5 which those companies are engaged, that lost half or more of their market a share above any price it fetched Maxine Goodman Levin College of or the fortunes of the many smaller, said Mr. Luce and others. value in the months leading up to before the economic downturn. Urban Affairs. often more parochial companies Public companies in Northeast March 2009. But the beatdown they “What we’ve got is a portfolio of that make up the local economy. Ohio tend to be involved in industrial took in the panic of 2008 also posi- Happy to be over-weighted local stocks (that) represents our “Does this mean the local economy production, or the production of tioned them to bounce back, said Those companies, and the index economy, so it’s over-weighted toward is doing well? You cannot say that,” industrial raw materials, both of Ken Mayland, president of ClearView they support, have done well in the industrials and materials,” Dr. Hill Dr. Hill said. “What it says is compa- which are sectors that have done Economics in Pepper Pike. recovery because manufacturing said. “Seventy percent of what is in this nies here are globally integrated well during the recovery so far. “Some of these companies were and raw material companies have index is industrial and materials.” and they’re figuring out what they “Most of the companies in the $2 stocks, and then they were $8 been two of the sectors that have Dr. Hill also noted that many of do well and how to work the globe.” index tend to be, or are, cyclical stocks,” Dr. Mayland said. “They shown the strongest rebound from the area’s public companies, espe- The region still benefits from companies,” said Mark Oelschlager, went down more going into the the recovery thus far, said Ned Hill, cially its industrial companies, do a companies with strong stock prices, portfolio manager for Oak Associates troubles, so it’s natural that they’re dean of Cleveland State University’s good deal of their business over- though, because they are less likely seas. Consequently, they’ve been to be bought out, Dr. Hill said. able to take advantage of stronger The future should hold more of growth in markets such as China, the same, experts say. which came out of the recession “I think they’re still coming back,” stronger than the United States. Mr. Oelschlager said. “There’s still However, that reality also means some skepticism out there about the stock prices of these companies economic growth, but in the past have little to no bearing on the state few weeks we’ve gotten some good of the economy in Northeast Ohio news about the economy.” ■
Doing our part to keep our Great Lake great.
The Northeast Ohio Regional Sewer District is proud to protect public health and our environment.
Learn more at wheredoesitgo.org 20101206-NEWS--23-NAT-CCI-CL_-- 12/3/2010 4:33 PM Page 1
DECEMBER 6 - 12, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Providence House bids The system paid off when the Greater More O-M alums NOVEMBER 29 - DECEMBER 5 Cleveland Sports Commission used it for its to make auction more fun Sports Awards Banquet last January, said find new havens The big story: University Hospitals kicked off ■Donors no longer will need to walk the length Janet Kuiper, executive assistant with the ■ Three more former Ostendorf-Morris Co. the public phase of a $1 billion fundraising effort of a football field to check out the items up commission. Though Ms. Kuiper couldn’t agents are hitching their futures to different with the announcement of a $42 million gift from for bid at Providence House’s annual Deck say how much of an increase in revenue real estate brokerages, bringing to five this Lee Seidman, founder of The Motorcars Group, the Halls fundraiser. it generated, it worked well enough to year the number of agents exiting the vener- and his wife, Jane Instead, they’ll use handheld devices to convince the commission to use it again for able Cleveland brokerage. Seidman. The gift is bid on an estimated 200 items Providence next year’s banquet in February. Signing on with the Cleveland office of CB the largest in the health House is selling through a silent “We were very happy with it,” Ms. Kuiper Richard Ellis are Barry Holtzer as vice system’s 144-year his- auction at the event, which said. — Chuck Soder president for corporate services and Jesse tory. University Hospi- takes place this Tuesday, Grant as an associate. Both men worked in tals CEO Thomas F. Dec. 7, in the AT&T City Watch out for that cliff, corporate services at O-M, with Mr. Holtzer Zenty III said the sys- View Club Lounge at serving as its industrial department head. PHOTO PROVIDED investment strategist warns tem’s new, $260 million Cleveland Browns Meantime, Connor Coakley has joined Lee and Jane Siedman cancer hospital at the Stadium. ■ Run with the lemmings, but only to a Grubb & Ellis Co.’s Cleveland office unit as UH Case Medical Center campus would be The technology point, Bruce McCain told a crowd last Friday an associate vice president from O-M. named after the Seidmans. The 375,000-square- should lead to during Key Private Bank’s Economic and Mr. Holtzer said O-M’s recent decision to foot, 150-bed facility — branded as the Jane and more bids because donors can Market Outlook presentation. drop its Colliers International affiliation to Lee Seidman Cancer Center — is scheduled to scan items quickly and they receive Growth is sluggish, inflation is a concern handle out-of-town brokerage assignments open next spring. See editorial, Page 10. alerts when someone outbids them, said and public confidence is low, all of which made the move to CB attractive because of Providence House president Natalie Leek- mean investors face significant challenges, its network of offices around the globe. All clear: Leaders of the city of Cleveland and Nelson. The organization expects the system said Mr. McCain, the bank’s chief invest- Also joining CB’s Northeast Ohio staff in Cuyahoga County signed the agreement that will to drive up silent auction revenue by 25%, ment strategist. More than 50 people a new position as director of project clear the way for construction to begin on the which will help pay for the emergency attended the event at the Cleveland Botanical management is Eric Verh, previously senior new convention center and medical mart on the services it provides to children at risk of Garden. project manager of construction at the Mall downtown. Under the agreement, the abuse or neglect, Ms. Leek-Nelson said. “The reality is, we can’t escape the Cuyahoga Metropolitan Housing Authority. county will pay the city $20 million for use of the Plus, it will make the event more enjoy- fear around us,” Mr. McCain said. “We all Mr. Verh has a long commercial construc- space under the Mall and will pay the cost of able for the 800-plus attendees who in past feel it. When fear is at its peak, so, too, are tion background, including a stint as vice tearing down a 1964 addition to the adjoining years spent a lot of time walking the length prices at their most opportunistic level. The president of development for Chelm Prop- Public Auditorium. The city agreed to use part of the lounge, she said. world is not going to end. Run with the erties Inc. of Solon. of that money to renovate Public Auditorium so “Lines were forming. People were getting lemmings, but peel off before they go over David Browning, CB managing director, it may be used in conjunction with the conven- frustrated,” she added. the cliff.” said Messrs. Holtzer and Grant will broaden tion center. The county also agreed to raise its Providence House expects to pay about Watch how the “lemmings” invest in gold, the firm’s corporate services focus. He bed tax 1% and to use the money the increase $13,000 to use the system, developed by he remarked, but also know that the rapid added that Mr. Verh gives CB the ability to generates to market the convention center. BidPal Networks of Indianapolis. However, price appreciation that occurs when people add construction services for clients that AT&T is throwing in $10,000 to sponsor the flock to an investment will come to an end need office renovation and other building Difference of opinion: Kent State University’s system, which is expected to more than pay and prices can drop quickly. — Michelle services as part of their purchase or lease $250 million campus renovation and construction for itself anyway, Ms. Leek-Nelson said. Park transactions. — Stan Bullard plan hit a wall — at least for now — as the university and the Ohio Board of Regents couldn’t agree on a method for financing the bulk of the plan. Kent State president Lester Lefton said the WHAT’S NEW BEST OF THE BLOGS university remains committed to the construc- Excerpts from blog entries Personal finance web site WalletPop.com tion initiative. The cost and the timetable could on CrainsCleveland.com. reported that Bankrate’s 2010 Checking change, he said, though the university is waiting Study examined ATM fees nationwide and to make any further decisions until officials have In tough times, a bit of social found Clevelanders, on average, pay the a better idea of what a future state budget holds lowest ATM fees, at $1.83 per transaction. for higher education in Ohio. The governor must enterprise wins praise The national average is $2.33. The highest present a budget to the Legislature by March. ■ You had to make it through some conde- ATM fees are in Seattle, where bank customers pay an average fee of $2.69. An Actual deal: TransDigm Group Inc. scension to get there, but a recent New York We’re all paying more for the privilege of entered into a definitive agreement to acquire Times story about innovations in the economy using ATMs. Bankrate reported ATM fees the Actuation Business of Telair International included kind words for Evergreen Cooper- this year are up 5% from 2009. Inc., a subsidiary of Teleflex Inc., for about $94 atives in Cleveland. million in cash. Actuation is located in Simi Valley, The piece began with the notion that we Calif., and makes electromechanical products can’t shop our way out of economic doldrums For some, the recession and other components for commercial and COMPANY: Goodyear Tire & Rubber and then asked several academics to iden- is a growth opportunity military aircraft. Actuation expects revenues in tify promising, growth-oriented initiatives Co., Akron ■ 2010 of about $25 million, two-thirds of which taking place nationwide. The Federal Reserve has diminished expec- should come from the commercial aerospace PRODUCT: Ultra Grip Ice WRT tire Gar Alperovitz, a professor at the University tations for the economy, but that’s not market and the rest from the defense market. of Maryland, told The Times that local affecting growth prospects for megachurches. Northeast Ohio has avoided significant About two-thirds of its revenues come from co-operatives sprouting around the coun- More than 80% of such churches — those snow so far, but it’s early, and you know it’s aftermarket sales. try are employee-owned and are getting off the with congregations of 2,000 or more — saw coming. Goodyear’s new tire is designed for ground with private and founda- more attendees this year, while Numbers guys: Parker Hannifin Corp. those moments when roads go from dry to tion money. just 9% reported lower atten- announced a change in its CFO post. Timothy K. wet to icy in a matter of hours. “Many of his favorite examples dance, according to the “2010 Pistell, executive vice president of finance and The tiremaker says the Ultra Grip Ice WRT are found in Cleveland, of all places Large Church Economic Outlook administration and chief financial officer, plans is the company’s first dedicated winter tire — like the Evergreen Cooperative Report.” to retire next March 31 after 41 years with the for SUV and light-truck vehicle segments. The Laundry, an employee-owned David Fletcher, executive company. Jon P. Marten, who has been vice tire has what Goodyear calls “Winter Reactive firm that provides laundry ser- pastor at The Chapel of Akron, president and controller since August 2008, Technology,” a combination of features “that vices to hospitals,” The Times said in the report that the reces- replaces Mr. Pistell in the two posts effective work together to help provide a balance of said. (Of course the paper had to sion has had a positive impact on immediately. Mr. Pistell retains an executive VP starting, stopping and turning action in a throw in that “of all places” phrase, churches. “The recession is help- title during a transition period. variety of weather conditions.” as if it’s impossible to conceive of good ing us focus on what we really need and Goodyear says other features of the Winter ideas from here.) want to do,” Pastor Fletcher said. Team players: Beth Mooney has yet to Reactive Technology are two- and three- Prof. Alperovitz is tracking enterprises assume the CEO post at KeyCorp, but she already dimensional tread blades, a directional tread such as the cooperative laundry on a web She had banking in her is setting up her management team. KeyCorp design and a “winter grip compound.” The site, Community-Wealth.org. He said he blood from the start said Christopher M. Gorman was named presi- Ultra Grip Ice WRT comprises two distinctive sees in these companies “the stirrings of a ■ dent of Key Corporate Bank and William R. tread designs — one for light-truck uses and movement animated by the cold reality that Forbes.com ran a Q&A with KeyBank’s Koehler was named president of Key Commu- another for SUV/crossover vehicles. neither the government nor private enter- Maria Coyne, founder of the Key4Women nity Bank. Both men will report to Ms. Mooney, The new tire line is offered in 16 sizes. It’s prise is on the verge of large-scale hiring,” business initiative, and from what she says, who is president and chief operating officer of available for vehicles including the Acura according to the newspaper. it’s obvious Ms. Coyne has followed the KeyCorp but will assume the CEO post upon MDX, Jeep Grand Cherokee, Toyota 4Runner, right career path. Henry Meyer’s retirement next May. Honda Pilot, Dodge Ram and Chevrolet Sub- Cleveland’s the place to be Banking is a longtime passion for Ms. urban. Coyne. The telling anecdote: While child- To keep up with local business news as it For information, visit www.GoodyearTires if you hate ATM fees hood friends played with dolls, she played happens, visit www.CrainsCleveland.com. .com. ■ Here are some data to make you glad you bank teller, using play money from her Mo- live here every time you visit an ATM. nopoly set. 20101206-NEWS--24-NAT-CCI-CL_-- 12/3/2010 8:20 AM Page 1
%FDPSBUFZPVSHBSBHFGPSUIF)PMJEBZT
XXXDPMMFDUJPOBVUPHSPVQDPN