20090209-NEWS--11-NAT-CCI-CL_-- 2/5/2009 2:36 PM Page 1

FEBRUARY 9-15, 2009 CRAIN’S CLEVELAND BUSINESS 11

INSIDE 12 BUSINESS FUNDING SOURCES ARE AVAILABLE. SMALL BUSINESS SKY’S THE SHORT TAKES LIMIT

Established ventures illustrate ■ RUBBED THE RIGHT WAY: Massage Envy, a national franchise, is potential in forced entrepreneurship slated to open its newest clinic at The Promenade at Crocker Park this Tuesday, Feb. 10. The business By JOEL HAMMOND workers — or at least represent offers monthly memberships similar to [email protected] another option. those offered at health clubs.“Our goal is Mike Berlin was laid off “Elective entrepreneurship to allow everyone to experience the ther- in 2000 from a web ayoff got you down? Want probably won’t be as prevalent as it apeutic and stress-relieving benefits of consulting firm, and better control over your would be in good times because massage therapy as often as needed,” founded BriteSkies LLC future? optimism fuels that,” said Steve said Brian Quinn, who owns the clinic with a laptop and It’s not a pipe dream, Millard, president and executive with Kevin Flynn. Other Cleveland-area some severance pay. L Massage Envy locations are in Beach- according to some Northeast Ohio director of the Council of Smaller Mr. Berlin is founder entrepreneurs who started their own Enterprises. “But coerced entrepre- wood, Fairlawn, Rocky River and and managing member ventures following a layoff. neurship will increase for folks who Strongsville. of the Cleveland-based With hundreds of thousands of are out of a job and need something software integration job losses nationwide, these so- to sustain their family. You’re going firm. called forced entrepreneurs can to find people move to entrepre- RUGGERO FATICA serve as models for displaced neurship who are being downsized.” See VENTURE Page 14

■ SPREADING GOODWILL: A new Goodwill retail store has opened at 10211 Northfield Road in the Ledge Road Plaza in Northfield Village. The 12,200-square-foot store features a job search station and community conference room. The store is open from 9 a.m. to 9 p.m. Monday through Saturday and from 10 a.m. to 6 p.m. Sunday.

■ COMING TOGETHER: Thomas Judge & Co. CPAs, Paul Pahoresky CPA and Lauric & Associates CPAs recently merged practices to form Judge, Lauric & Pahoresky CPAs. The result is a full-service public accounting firm providing accounting and tax services to individuals and companies. The seven-employee firm is located at 8952 Tyler Blvd., Mentor.

■ GOING WEST: Recruiting firm Amotec Inc. of Westlake has opened an office in Toledo. Amotec provides recruiting services in such industries as consumer, manufacturing, finance, aerospace, heavy equipment, automotive and food. Four employees were hired for the Toledo office, and there are plans to add additional staff in Toledo later this year.

■ AKRON OFFICE: Leimkuehler Inc., a Northeast Ohio provider of prosthetics and orthotics for more than 60 years, has opened an office in the Akron area, across from Summit Mall. Leimkuehler also has locations in Cleveland, North Royalton and Lyndhurst, as well as a mobile unit that travels to physician offices, hospitals, rehab facilities, nurs- ing homes and residences. 20090209-NEWS--12-NAT-CCI-CL_-- 2/5/2009 2:00 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 9-15, 2009 SMALL BUSINESS Specialized lending programs available despite credit crunch

targets specific industry sectors To qualify for Ag-Link, farms must have served in any U.S. military Institutions, state MARSHAPOWERS and provides financial support be for-profit with headquarters and branch, at any time in war or including $150 million for more than half of their operations in peace, the service-disabled, active sources support job advanced energy, $100 million for Ohio. Documentation is required to duty in transition or National Re- Ohio’s biomedical industry, $50 demonstrate need for the reduced serve and National Guard mem- creation, retention million for bioproducts, $250 interest rate, and the applicant may bers. million for the Higher Education request the reduction on up to ■ SBA Express loan: Maximum ven financially healthy Workforce Initiative, $400 million $100,000 of a loan. loan of $350,000, with a 50% companies are feeling the for public works, $120 million for At a federal level, the Small guarantee by the SBA with credit pinch in 2009, and it Historic Preservation Tax Credits Business Administration’s major a 36-hour turnaround. Use of will take several quarters to SMALL BUSINESS and $400 million for Clean Ohio. programs finally were funded and funding is the same as the SBA 7(a) Esee how President Barack Obama’s FINANCE The Ohio Treasury offers the are now more able to help small program. new economic stimulus package following programs to support busi- business. The Obama administra- will help small business. nesses that create and retain jobs: tion will more than likely look at Other sources of funding: In the meantime, here are existing business loans: Growth Capital ■ Ohio Enterprise Bond Fund: beefing up the SBA to help get ■ Venture capital funding: funding sources to consider: Corp., a community development The OEBF is available to eligible funding to small business. A bank V/C funding, in general, is ■ Credit unions: Credit unions corporation that provides the Small borrowers for the purpose of is required with SBA credit, so currently very tight. Fund groups are now filling an important credit Business Administration 504 and purchasing land, buildings and work with a bank that has a are reviewing their portfolio void —providing loans and lines Ohio Regional 166 loan programs, equipment that will create and specialist in SBA funding. companies, grading them A, B under $50,000 — as many banks recently has partnered with the retain jobs and further promote ■ SBA 7(a) loan guaranty: or C. Generally, if a company is concentrate on larger, less risky Community Reinvestment Fund, economic development. Eligible This program can be used for most graded an A or B, the fund will loans. Because credit unions are USA. This will allow Growth Capital borrowers include corporations, business purposes, including provide the company with follow- privately owned and do not have to offer more flexible funding to partnerships, sole proprietorships, startup, expansion, equipment up money. If the company is the high overhead of a bank, they borrowers. The CRF brings together limited liability companies or limited purchases, working capital, inven- graded a C, the company will be sometimes can offer loans with community development lenders liability partnerships engaged in tory or business-occupied real required to look elsewhere for new lower interest rates. In most cases, and socially motivated and market- the creation or retention of jobs in estate purchases. The program capital. you do not need to be a member of rate investors to increase the industrial, manufacturing, lowers fees to borrowers and their With only a handful of IPOs last the credit union to apply. amount of capital invested into commerce, research and develop- participating banks, with a maxi- year, and predictions are the same ■ Banks: Yes, banks are lending local communities. ment or distribution ventures. mum loan of $2 million, of which this year, the V/Cs are being but are using much stricter credit- The Ohio Department of Develop- ■ GrowNow: This program the SBA will guarantee up to $1.5 required to continue to support writing criteria, including more ment also offers programs covering a offers interest rate reduction on million to the bank. their portfolio companies instead cash infusion, higher loan-to-value full range of programs to support loans to small businesses that ■ SBA loan: of selling them off to earn their exit ratios, higher credit scores, business, including grants and create or retain jobs. The treasury This program offers financial strategy profits. ■ increased scrutiny of the company’s funding ranging from $2,500 for invests state funds with participating packages of up to $500,000 and business growth plans, stricter training to multimillion-dollar banks at below-market rates and with enhanced guarantee and Ms. Powers is CEO of Powers terms and covenants to ensure any infrastructure programs: the bank passes the interest rate interest rates. This is an excellent Financial Group Inc., which risk is mitigated out of the deal. ■ Ohio Bipartisan Job Stimulus savings (up to 3%) along to the finance program to consider if specializes in helping companies Don’t be surprised if you are asked Plan: This newer program still is small business. capital is needed to start or sustain secure financing for business loans, to move all your checking accounts being crafted and is sometimes ■ Agricultural Linked Deposit a business during and after you commercial real estate, mergers to their bank. difficult to navigate through the Program: Ag-Link offers interest have served our country. This ex- and acquisitions. marsha@powers- ■ Community reinvestment review process. The program rate reductions on loans to farmers. panded program is open to all who financial-group.com GRANDOPENINGS

GO! BISTRO CORPORATE SECURITY & 1261 SOM Center Road INVESTIGATIONS (CSI) Mayfield Heights 44124 600 Superior Ave. East, Suite 1300 www.go-bistro.com Cleveland 44114 Go! Bistro is a casual restaurant www.csiinvestigators.com offering a variety of sandwiches, Headed by former Lakewood police of- salads, burgers, ribs, pastas, beer ficer Jeff Jerdonek, Corporate and wine. It is open 11 a.m. to 9 p.m. Security & Investigations in Cleveland Monday through Friday; 11:30 a.m. to works with law firms and corporations 9 p.m. Saturday; and it is closed on to provide a wide range of security Sunday. The restaurant’s owners are and investigation services. It is a new Larry and Cindy Moore. franchise that evolved from 440-684-6400 Gentile-Meinert & Associates Inc., [email protected] Larry and Cindy a professional investigation firm Moore opened Go! located in Pittsburgh. CSI started fran- Bistro on SOM chising in 2008, and Mr. BANCHEE AND RASKOL Center Road in Jerdonek’s office is one of four JEWELRY DESIGNS Mayfield Heights. recently opened and the only one The restaurant South Euclid in Ohio. serves salads, www.bancheeandraskol.com burgers, ribs, 440-937-3600 Banchee and Raskol Jewelry Designs pasta, beer and [email protected] was started by Ann Jackson as a wine. hobby to help others. “I started CENTURY making jewelry as I could not find any CINDY HALLE quality silent auction items for the wine list. The restaurant is under the Viva Spanish!, a new business that will 1501 Chagrin River Road many charities that I volunteer for,” Crain’s video direction of general manager Mike bring Spanish language programs to Gates Mills 44040 Ms. Jackson said. Each jewelry piece For a look at Grotto Wine Bar, Tomaselli, formerly of the Vue adults and children in businesses, Cindy Halle has opened a boutique designed by Ms. Jackson has a signa- visit the Multimedia section at Restaurant in Hudson. The Salerno schools and organizations. As the in Gates Mills, next to Sara’s Place, ture cat and angel charm. Banchee www.CrainsCleveland.com/ Restaurant Group was created in demand for practical Spanish language carrying Nina McLemore and other and Raskol Jewelry Designs, which Grotto. 2003 by chef/owner Fabio Salerno skills grows, Viva Spanish! aims to boutique items. Nina McLemore is derives its name from two stray cats and father Ricardo Salerno. Partners offer the training and tools necessary a New York line of women’s clothing, taken in by Ms. Jackson, are made now include James Fink and William to improve business operations, GROTTO WINE BAR and the Gates Mills location is a with gemstones such as Peruvian Salerno. customer service and communication first of its kind in the Cleveland opal, amazonite, blue topaz, rubies 13101 Shaker Square in critical situations. Lunch and Learn 216-751-WINE (9463) region. Hours are 11 a.m. to 4 p.m. and others. Ms. Jackson is former Cleveland 44120 programs are available to businesses Monday through Saturday or by regional director for Fashion Group www.grottoshakersquare.com interested in bringing Spanish to their appointment. International, former department chair- Grotto Wine Bar, in the heart of Shaker VIVA SPANISH! lunchrooms as a value-added benefit woman at the Virginia Marti College of Square, is a new venture by the for employees. Ms. Benitez-Reilly has 440-423-0300 Art and Design, and adjunct professor Salerno Restaurant Group, the owners 38033 Euclid Ave., T13 been conducting Spanish-language Willoughby 44094 in Ursuline College’s School of Fashion of Lago in Tremont and Gusto in Little programs in northern Ohio for 13 To submit a new business for grand www.vivaspanish.com Design. Italy. Grotto opens at 4:30 p.m. seven years. openings, e-mail sections editor Amy 216-381-1500 days a week, and it offers a small- Gladys Benitez-Reilly, co-owner of the 440-520-5619 Ann Stoessel at [email protected] [email protected] plate Italian menu and an international former Amigos & More, has launched [email protected] or call 216-771-5155. 20090209-NEWS--13-NAT-CCI-CL_-- 2/5/2009 3:37 PM Page 1

FEBRUARY 9-15, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 SMALL BUSINESS Altering loan terms, Limo services try to stay on a roll

So, he did not figure that he was while beneficial, may Firms ride out tough taking a leap of faith when in 2006 he opened Unique Limousine Service times, bring specialty Co., Medina. He fully expected that have tax implications his enthusiasm for his vehicles would offerings to the road prove contagious, bringing him a n today’s business environment, steady stream of customers. it sometimes becomes necessary CARLGRASSI By HARRIET TRAMER He remembers all of his clients to come to an alternative pay- [email protected] fondly but there are a few that stick ment arrangement with a lender. in his mind. There was the young PHOTO PROVIDED IWhile such arrangements can pro- t’s not just about getting there; woman who arranged to have her Rockin’ Cleveland’s Sinatra limo bus vide relief, business owners need to it’s about how you get there. and her boyfriend driven to a Canton rib house for his 21st birth- be aware these types of renegotia- At least that’s what some local with one vehicle, currently has day in a Rolls Royce. Then, there tions can result in the realization of limousine firms are hoping for in plans to put their seventh vehicle taxable income. Ithis age of cost cutbacks. In fact, was the bride who whipped out her on the road. computer in the car and proceeded While the business and financial some in Northeast Ohio are The firm’s custom-built buses TAX TIPS to write out a seating chart for the benefits of reducing an obligation offering expanded services, going each have stereo systems, plus bars reception. generally will outweigh any negative well beyond the typical black stretch that can be hidden for children’s ments in certain types of business “I won’t let people smoke or drink tax impact, business owners should limousine. events. Rockin’ Cleveland even offers real property or from a renegotiation in my cars,” Mr. Courtney said. “And keep these tax issues in mind. “If you target a certain clientele good times before the real partying of debt associated with a principal I won’t be bargained down from my Borrowing money is, of course, a that wants to celebrate, you should begins: For $10 buses will transport residence. price of $150 an hour for the 1958 car nontaxable event because of the make your product part of their students from local colleges to down- The exclusion of COD income is and $125 for the others, with three borrower’s ultimate obligation to celebrating,” said Wayne Bergman, town Cleveland. Riders who are not a complete “free pass.” Any COD hours being the minimum, but that repay the amount of the loan. If the president of Woodmere-based of age also get free entrance to local excluded from income under any of does not seem to stop people from loan is “forgiven,” in whole or in part, ActionCOACH Business Coaching, bars. the exceptions noted above will wanting the service.” however, the borrower normally will which advises small businesses. “The buses are a party on wheels, result in a reduction of certain tax pay tax on such amount as cancella- But Ron Sorci, president of the and they are each named after a Economizing attributes of the business, ranging tion of indebtedness, or COD, income. National Limousine Association, a musician and have this artists’ name from loss of carryforwards to the tax But Joel Libava, whose family has While paying tax on COD income trade group, said people aren’t doing on the side,” Mr. Mrozek said. “The basis of assets. owned Beachwood-based Franchise may be a better alternative than the a lot of celebrating right now. Hendrix bus is purple as a tribute to These tax attribute reductions gen- Selection Specialists Inc., said at this continuing obligation to repay the “The recession has negatively his ‘Purple Haze.’ The Sinatra erally will not have a tax impact until point people might be looking for full amount of the loan, there are affected our industry. There have bus is more for upscale corporate future years, so it is generally a better something “toned down” in limou- several elements of COD income that been severe budget cuts among events or weddings.” decision to exclude the COD income sine services as they begin accepting make it a relatively high price to pay. major industries as it relates to Larry Courtney admits that he is a today and address the tax conse- a simpler lifestyle. First, COD income is taxed as ordi- ground transportations,” he said. car nut who remains endlessly quences associated with the attribute “This might not be the time when nary income, meaning individuals “Many businesses have scaled back enthusiastic about his vintage cars: a reduction at some point in the future. they are looking for anything too will pay tax at their highest marginal considerably at their transportation 1958 Rolls Royce, a 1969 Rolls Royce, Business owners who operate their far outside the tried and true,” he tax rates. Second, the forgiveness of expenses. I would say the percentage a 1962 Lincoln Continental and a businesses as partnerships or limited said. ■ the loan generally does not make decrease varies from city to city. We 1976 Cadillac. cash available to pay these taxes. liability companies need to be very have heard anywhere from 10% to A much more common COD issue careful when dealing with these rules. 40% during 2008.” arises in situations where the debt is Since these types of entities pass Indeed, Bill Haines, a manager not forgiven but the terms of indebt- through their income to their owners, with Butterflies Inc. Limo & Balloons edness are modified. Modification of the COD income is therefore taxed at of Willoughby, said his revenue was a loan can take many forms, including the owner, not the entity, level. down 10% to 14% in 2008 from the a reduction in interest rate, an exten- Problems can arise with pass- 2007 figure. It would have been lower sion of the loan term and a deferral of through entities because the most due to economic pressures, but scheduled payments. common exceptions to recognition of people are continuing to spend From the IRS’s standpoint, these COD income — the bankruptcy money on weddings. modifications need to be tested to exception and the insolvency excep- “Things are really great for us see if they are considered “substan- tion — are tested at the owner level when people want both balloons and tial.” If a modification is deemed to and not the business level. limousines for a wedding,” Mr. be substantial, the modification is The fact that an LLC, which has Haines said. “These days, a lot of treated as though the taxpayer recognized COD income, is in bank- people will do without balloons, exchanged the old debt obligation for ruptcy or insolvent does not prevent figuring they are not absolutely es- a new debt obligation, and COD the owners from recognizing such sential, but they still want limousines. income can result to the borrower. income unless the owners themselves They absolutely will not give that up.” The regulations provide certain are in bankruptcy or are insolvent. safe harbors for modifications that In the end, this distinction, along Full speed ahead are not considered substantial for with the other factors discussed For Roman Mrozek and his two purposes of these rules. The safe above, must be taken into account business partners, Christopher harbor rules are fairly generous when when planning for the renegotiation Kittinger and Travis Sholley, however, ■ it comes to extensions of maturity of any indebtedness. the transportation business is driving dates; as long as the extension does forward. not exceed the lesser of two years or Mr. Grassi is a member and presi- The trio, which started Rockin’ 50% of the original maturity, this kind dent of McDonald Hopkins LLC. Cleveland Party Bus Service in 2004 of modification will not be consid- ered a substantial modification. On the other hand, relatively small changes in the interest rate (25 basis points) will generally be deemed to HOW MUCH IS YOUR TIME WORTH? be substantial. If the loan modifica- tions are in excess of what is allowed by these safe harbor rules, COD income will likely result. There are numerous situations in which a taxpayer will not be required to pay tax on what otherwise would be COD income. For instance, tax- payers who have debt discharged pursuant to bankruptcy proceedings do not pay tax on COD income that Let us cater to you. Our expertly flown King Air 200 aircraft are ready to arises during the bankruptcy process. meet all of your charter needs in style and comfort. Call or e-mail us today Similarly, taxpayers who are insol- for a free quote. (800) 579-9333 or [email protected] vent do not pay tax on COD income to the extent of the insolvency Serving Burke-Lakefront, Cuyahoga County, Cleveland-Hopkins, even if they are not in bankruptcy. Akron-Canton, and Lorain County Airports. Other exceptions are provided for specific types of transactions, such as , INC. where the COD results from invest- "Getting you there safely for three generations" 20090209-NEWS--14-NAT-CCI-CL_-- 2/5/2009 2:58 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 9-15, 2009 SMALL BUSINESS

“Being in an area that’s not dynamic is frustrating,” Mr. Libava Venture: Students consider entrepreneurship route said. “People are not moving here; people are moving away. It’s frus- continued from PAGE 11 marchFIRST, started BriteSkies with can be a negative. trating that we live in a fairly conserv- That move won’t come easy, of the four-week severance he received “Ironically, there may be For example, gone are the days of ative area that needs help.” course, but it can be done, said and the laptop and domain name turning off your cell phone when more stability in this line Even at school Mark Hauserman, executive he then bought. of work.” you get home, said Kristy Amy, director of John Carroll University’s “If you’re great at what you do, president and founder of OnMark In a unique twist, even college Entrepreneurs Association. that doesn’t mean you’ll have a – Patricia Klavora Solutions, an e-marketing company students are being forced to consider Mr. Hauserman, who dismisses good business,” Mr. Berlin said. owner, Marketing 360 Group LLC in Westlake. all their options, including entrepre- the notion that 80% of startups go “Technical expertise is not business She started the company after she neurship, said Julie Messing, director out of business within a year, said acumen. I had to go from a computer as a major benefit. Ms. Winick’s was laid off while pregnant with her of Kent State University’s Center of the key is to develop a business guy to a business owner.” department was eliminated, and second child, and she has since had Excellence for Entrepreneurship and model that reaches a revenue- a third. Taking the good with the bad although she was offered a job in a Business Innovation. generating stage quickly. different area of the company, it “There’s no such thing as mater- Ms. Messing said students are How to do that? Fear never registered for Patricia would have meant a commute that nity leave when you work for your- seeing job opportunities dwindle by “You can’t start from scratch,” Klavora, the owner of Cleveland- was 45 minutes longer and a 40% self,” Ms. Amy said. “If you want to the day, and pay for existing jobs is said Ron Finklestein, president and based Marketing 360 Group LLC, pay cut, she said. keep the business going, you have not in line with what they want. CEO of Akron-based business and who said she has found more stability In the end, Ms. Winick, whose to keep working.” “Typically, students are here to executive coach company Akris LLC in her new role — providing small company audits businesses’ utility The same outside forces that learn about entrepreneurship, then who in 2001 was laid off from Xerox and midsize businesses with and telecommunications bills, resulted in entrepreneurial candi- plan on joining the work force for Connect in Garfield Heights. “You marketing assistance. Ms. Klavora said she was lured by the idea of dates’ job losses can also play a role five years to gain experience, learn have to partner with or seek out was laid off in 2005 from her making her hard work and long in startups’ success or lack thereof, protocol and build their network,” someone with institutional knowl- marketing specialist position hours pay off for herself, not a struggle Joel Libava fights. Ms. Messing said. “Instead, they’re edge, so you can short-circuit the at FirstEnergy Corp. another company. Mr. Libava, the president of looking at this as a potential opportu- learning curve.” “I’d already lost my job; how “Loyalty’s a one-way street,” Ms. Cleveland-based Franchise Selec- nity.” There’s also an attitude shift, said much worse could the fear get?” Ms. Winick said. “The timing was right; I tions Specialists Inc., said he has John Carroll’s Mr. Hauserman said both Mr. Finklestein and Mike Klavora asked. “It’s up to me to get needed to control my own destiny. I long bemoaned the region’s stagna- some consider entrepreneurship Berlin, founder and managing the business, and you never lose it directly benefit from what I do. I can tion. Typical of many entrepreneurs because of their parents’ troubles. member of BriteSkies LLC, a down- all at once. Ironically, there may be make my own schedule and decide whose roles require them to create “Kids have parents getting laid off town Cleveland-based software inte- more stability in this line of work.” who I want to work with.” their own businesses, Mr. Libava from National City, and they worry” gration outfit. Linda Winick, who started Cost While the control that comes with said clients aren’t always beating Mr. Hauserman said. “They’re seeing Mr. Berlin, laid off in 2000 from Control Consultants in 2008 after 13 forced entrepreneurship can be a down his door, especially in the it as a lot of work, but they want to Internet consulting company years at AT&T, touted that control positive, the responsibility involved Cleveland area. work for themselves.” ■ THEINTERVIEW AL PLASTOW decisions on IT purchases tend to be Founder unfamiliar with technology. The Business Technology “There is a disconnect between IT Consumer Network people … and the business side of the enterprise,” said Mr. Plastow, By AMY ANN STOESSEL who estimates that more than 20% of [email protected] most firms’ IT budgets are spent unnecessarily. hen Al Plastow was The Business Technology Con- working as a sumer Network is a partner business con- in The Consortium for sultant, he was Technology Portfolio Man- amazedW at how much tech- agement Excellence, an al- nology was mismanaged — liance that includes the at businesses of all sizes. Kent State University Col- “The unnecessary spend- lege of Technology and the ing was just astounding,” Manufacturing Technology said Mr. Plastow, who in Small Business Develop- Plastow 2006 founded The Business ment Center at Kent State. Technology Consumer The vendor-neutral consortium’s Network, an IT asset management efforts will include research and training and consulting firm based in classes that focus on business- University Heights. process and life-cycle solutions to The biggest problem, according to technology management problems. Mr. Plastow, is that those who make Mr. Plastow has a master’s degree from Kent State. He is the author of “Modern Pirates: Protect Your Com- pany from the Software Police,” pub- With the lished in 2006. Creative He recently answered some ques- involvement of our tions regarding how a small business business leaders like you, can best manage its technology. Thinkers Cuyahoga County’s Invest in Children busıness ■ What is IT asset management? can continue to make great strides in providing IT asset management is to maintain is growing complete business-value control of services that help young children grow up to all the technology goods and services Needed be employees, board members, investors and leaders the company uses across their entire who will advance our region with intelligence, confidence yours life cycle. … The key to that state- To help local and innovation. ment is business control, not techni- businesses prosper. cal control. Again, technology people By focusing our energies exclusively on children during by leveraging your in general … it’s not their job to their most formative years, we’ve become a solution-oriented technology investment negotiate contracts. … A lot of their model that cities nationwide are following — and that you job is to keep the equipment up and running. So this is a business process. What a big difference can feel good about supporting. Find out the answers to these questions by going to www.Crains a child can make to our future! Cleveland.com/Plastow: ■ What is the biggest mistake Become a part of something big. made in terms of IT management? ■ Why is IT asset management 216.698.2586 important for a small business? InvestinChildren.CuyahogaCounty.us ■ 1-800-ASK-CBIZ What are some of the top ways a (275-2249) small business could save money through IT asset management? www.cbiz.com ■ What are some of the top issues in IT asset management today? 20090209-NEWS--15-NAT-CCI-CL_-- 2/4/2009 11:19 AM Page 1

FEBRUARY 9-15, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 LARGEST AIRLINES SERVING CLEVELAND

RANKED BY NUMBER OF ENPLANED PASSENGERS (1)

Enplaned Enplaned air freight Enplaned air mail passengers (in pounds) (in pounds) Airline Percent Percent Percent Rank Web site 2008 2007 change 2008 2007 change 2008 2007 change Landings Reservations number

Continental Airlines 1,760,602 1,861,267 -5.4% 6,204,485 7,943,063 -21.9% 2,142,953 3,093,305 -30.7% 15,438 (800) 525-0280 1 www.continental.com

Continental Express 1,046,544 1,399,743 -25.2% 306,701 557,567 -45.0% 2,585 2,542 1.7% 28,590 (800) 525-0280 2 www.continental.com

Chautauqua-Continental 587,090 279,148 110.3% 768 0 NA 1 0 NA 16,003 (800) 525-0280 3 www.flychautauqua.com

Southwest Airlines 563,281 587,009 -4.0% 852,677 1,029,871 -17.2% 0 0 NA 5,915 (800) 435-9792 4 www.southwest.com

Continental Connection 303,527 214,659 41.4% 0 0 NA 0 0 NA 15,006 (800) 525-0280 5 www.continental.com

American Eagle 187,911 231,341 -18.8% 15,431 21,566 -28.4% 57 0 NA 4,280 (800) 433-7300 6 www.aa.com

United Airlines 152,480 150,311 1.4% 239,318 121,930 96.3% 0 0 NA 1,546 (800) 241-6522 7 www.united.com

Republic-US Airways 97,871 40,371 142.4% 2,492 1,768 41.0% 0 0 NA 1,560 (800) 428-4322 8 www.usairways.com

US Airways 90,919 75,140 21.0% 66,710 109,813 -39.3% 251,455 257,770 -2.4% 957 (800) 428-4322 9 www.usairways.com

Pinnacle-Northwest Airlink 89,040 98,057 -9.2% 49,773 46,066 8.0% 0 0 NA 2,321 (800) 225-2525 10 www.nwa.com

Atlantic Southeast-Delta Connection 82,415 64,080 28.6% 15,787 0 NA 5 0 NA 1,711 (800) 221-1212 11 www.flyasa.com

USA 3000 81,273 93,246 -12.8% 0 0 NA 0 0 NA 722 (877) 872-3000 12 www.usa3000.com

Delta 60,093 83,536 -28.1% 69,354 225,000 -69.2% 0 0 NA 534 (800) 221-1212 13 www.delta.com

Mesa-United 59,961 72,940 -17.8% 0 0 NA 0 0 NA 1,460 (800) 637-2247 14 www.united.com

Comair-Delta Connection 52,283 48,660 7.4% 1,372 2,070 -33.7% 0 4 -100.0% 1,511 (800) 221-1212 15 www.delta.com

Northwest Airlines 46,581 89,705 -48.1% 76,506 174,648 -56.2% 0 0 NA 826 (800) 225-2525 16 www.nwa.com

Mesaba-Northwest Airlink 44,519 0 NA 13,103 0 NA 30 0 NA 1,148 (800) 225-2525 17 www.mesaba.com

SkyWest-United 41,228 64,965 -36.5% 0 618 -100.0% 0 0 NA 715 (800) 241-6522 18 www.united.com

Air Wisconsin 38,675 46,508 -16.8% 1,778 5,309 -66.5% 1 33 -97.0% 1,085 (800) 241-6522 19 www.airwis.com

Chautauqua-Delta 30,996 37,569 -17.5% 0 0 NA 0 0 NA 916 (800) 221-1212 20 www.flychautauqua.com

Mesa-US Airways 25,087 50,665 -50.5% 1,767 2,001 -11.7% 16 0 NA 444 (800) 428-4322 21 www.mesa-air.com

Midwest Connect 22,273 26,603 -16.3% 2,026 2,153 -5.9% 2 615 -99.7% 1,051 (800) 452-2022 22 www.midwestairlines.com

Skywest-Delta 14,515 10,751 35.0% 1,164 618 88.3% 0 0 NA 264 (800) 221-1212 23 www.skywest.com

Air Canada/Jazz Air 14,242 14,567 -2.2% 0 0 NA 0 0 NA 857 (800) 247-2262 24 www.flyjazz.ca

Colgan Air-Continental 12,269 0 NA 0 0 NA 0 0 NA 203 (800) 523-3273 25 www.colganair.com

PSA Airlines-US Airways 9,111 42,234 -78.4% 147 4,684 -96.9% 0 12,262 -100.0% 165 (800) 428-4322 26 www.usairways.com Information is from the Cleveland Airport System Statistical Report, December 2008. The Book of Lists and enhanced versions of most lists, with more companies, are available RESEARCHED BY Deborah W. Hillyer and to purchase at www.crainscleveland.com. Kim Ratliff-Null (1) Serving Cleveland Hopkins International Airport. LARGEST AIRLINES SERVING AKRON-CANTON RANKED BY NUMBER OF ENPLANED PASSENGERS

Airline Enplaned passengers Rank Web site 2008 2007 Percent change Most frequent destinations Reservations number Station manager AirTran Airways 335,372 316,232 6.1% Atlanta, Boston, New York City, Orlando and Tampa (800) 247-8726 Lin Alida 1 www.airtran.com Delta Connection 137,730 151,237 -8.9% Atlanta and Orlando (800) 354-9822 Paul Kaparoff 2 www.delta.com US Airways Express 91,507 73,211 25.0% Washington, D.C., Charlotte and Philadelphia (800) 428-4322 Dave Wyatt 3 www.usairways.com Frontier 83,633 73,711 13.5% Denver (800) 432-1359 Cass Tyson 4 www.frontierairlines.com Northwest Airlink 46,083 40,532 13.7% Detroit (800) 225-2525 Paul Potemski 5 www.nwa.com 37,168 38,179 -2.6% Chicago (800) 241-6522 Paul Kaparoff 6 www.united.com Source: Information is from the Akron-Canton Airport. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are RESEARCHED BY Deborah W. Hillyer and complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. The Book of Lists and enhanced versions of Kim Ratliff-Null most lists, with more companies, are available to purchase at www.crainscleveland.com. 20090209-NEWS--16-NAT-CCI-CL_-- 2/5/2009 2:57 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 9-15, 2009

Don Schwaller - Classified Manager 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 COMMERCIAL SPACE OFFICE SPACE www.colliersom.com COLLIERS 216.861.7200 OSTENDORF-MORRIS New Solon OFFICE INDUSTRIAL Office Building 30675 Solon Rd. Cleveland: Warehouse District office space for lease, 600-4,500 SF available, great Bainbridge: Office/warehouse building available for sale, 27,109 SF on 3.25 views, self-contained 7th floor available - Bennett Morrison x 5097 acres, 3,700 SF of office, drive-thru - Michael Occhionero x 5291 1st floor 1,107 sq. ft. Mentor: 4,500 SF facility for sale, 1,600 SF for lease on .33 acres, surface Parma: 13,011 SF freestanding building for sale on 2 acres, 3,600 SF of office 2nd floor 3,790 sq. ft. parking, single-story building, located just south of Route 2 -Greg West x 5379 space, 40 parking spaces, 2 docks - Brian Lenahan x 5380 or divided 1,472 sq. ft. & 2,318 sq. ft. with elevator. LAND Cleveland: 16,190 SF building for sale, 4,060 SF office area on 1.3 acres, dock, Cleveland: Euclid Avenue, 2.38 acres available, located along Euclid Corridor Health 7 drive-ins, walk-in refrigerator/freezer, make offer! - Dan Schiau x 5338 Call Dinallo-Wittrup & Associates Line, public transit-friendly - Pete Farina x 5262 Cleveland: 109,000 SF industrial user/investor complex for sale near Hopkins 440-349-4664 Lakewood: Detroit Avenue., .71 acres available, zoned C3 - commercial/general Airport, good cash flow! - Joseph J. Martanovic x 5434 business, utilities to site, commercial investment opportunity - Pete Farina x 5262 North Royalton: 79,942 SF for sale or lease, units available 1,800 SF and up, RETAIL SPACE INDUSTRIAL/FLEX Platinum Park Plaza, new multi-tenant complex - Kevin Kuczynski x 5684 Macedonia: Total 45,781 SF office/warehouse space for sale or lease, divisible units, Independence: For lease: 24,000 SF with 5,000 SF office, Granger Rd, 1 drive-in, Chagrin Blvd. 16’ ceiling height, insulated energy efficient - Chris Hondlik x 5686 4 docks, 16’ clear ceilings, access to I-77/I-480 - Brian Lenahan x 5380 Across from Eaton Square Approx. 3,000 Sq. Ft. Occupancy Feb. 2009 List your Industrial, Call Sharon ATTENTION REALTORS: 216-956-6818 • 216-464-1422 commercial or Now is a great time to promote your REAL ESTATE Retail Space Here! Luxury Properties to high-end prospects SERVICES AND receive reduced rates on Loading Dock Services Crain’s Cleveland Business’ classifieds will help you fill that space.. your advertising. Service, Maintenance and Sales of Dock Levelers, Bumpers, Seals, Truck Restraints and Contact Don Schwaller at 216.771-5172 Call Don Schwaller at (216) 771-5172 or Metal Stairs. Free Inspections e-mail [email protected] for more details. and Estimates. [email protected] 800-34-DOCKS / 440-729-0380 CLASSIFIED PUBLIC NOTICE BUSINESS SERVICES

PUBLIC NOTICE DON’T ASSUME YOUR UTILITY BILLS ARE CORRECT. LET US HELP RETURN $$$ TO YOUR BOTTOM LINE. REQUEST FOR PROPOSALS (RFP 13641) An astonishing 80% of all utility and telecom billing is inaccurate. But the mistakes are difficult to detect, so most bills are routinely overpaid The Cuyahoga County Office of Human Resources is now solicit- without question. ing proposals from agencies and organizations interested in provid- Put our 17 years experience in finding errors, overcharges and cost ing a Professional Healthcare Consultant for specifications develop- saving opportunities to work. Our auditing services are contingency ment to Cuyahoga County. fee-based, so WE GET PAID ONLY IF WE SAVE YOU MONEY. COST CONTROL CONSULTANTS A pre-proposal conference is scheduled for Tuesday, February 17, 216-534-9933 / www.cost-control-consultants.com 2009 at 2:00 p.m. at BOCC Chambers, 1219 Ontario Street, Cleve- land, OH 44114. Copies of the proposal specifications are available from the Office of Procurement and Diversity. [Phone: (216) 443- BUSINESSES 7200]. Specifications will not be made available at the conference. FOR SALE Completed proposals must be submitted to the Office of Procure- ment and Diversity, 112 Hamilton Court, Cleveland, Ohio 44114, For Sale ATTENTION no later than 11:00 a.m. on March 3, 2009. Adult care facility, NE Ohio Excellent opportunity, BUSINESS SERVICE OWNERS! turn key operation. We confidentially By Order Of The Board Of County Commissioners Of Cuyahoga sell businesses. Submit your business card to County Call 440.225.4636 promote your service and receive a for info. * Sell-Side Representation * SUBSTANTIAL DISCOUNT JIMMY DIMORA TIMOTHY F. HAGAN * Exit Planning Services * PETER LAWSON JONES off your ad price. * Business Valuations * Lenora M. Lockett, Director DON’T To find out more, contact * Acquisition Searches for Don Schwaller at 216.771.5172 Office of Procurement & Diversity FORGET: Businesses & Individuals * Publish in the Crain’s Cleveland Business the week of February 9, Crain’s Cleveland Business Confidential Business Sale, Inc. on-line @ 2009 Looking for brains? CrainsCleveland.com 216-739-0272 This notice may also be viewed at the following Cuyahoga County For all the latest business ConfidentialBusinessSale.com news...online Internet Web Site: http://www.opd.cuyahogacounty.us by clicking CALL CRAIN’S Experience. Trust. Success. on the current legal notices section. A list of open bids will appear Call Don Schwaller for NEW Special on the next screen. Click on the bid due date to view the legal no- Executive Recruitment rates! tice. (216) 771-5172 WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-888-909-9111 or on-line @ CrainsCleveland.com Click on “Subscribe Now.” 20090209-NEWS--17-NAT-CCI-CL_-- 2/6/2009 4:50 PM Page 1

FEBRUARY 9-15, 2009 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Mall: Project’s cost bottom line The Breen & Co. continued from PAGE 1 down the costs as far as they commissioners to review the engi- real estate reporting that a site in the Flats on believed they could, Mr. O’Neal neering studies and to take more brokerage has the lakefront had been chosen as a said. In the end, the best price on borings to verify the soundness of filed a lawsuit backup to the Mall site “is completely the Mall site was $422 million; at the existing foundation, Mr. O’Neal against Werner erroneous.” The Plain Dealer reported Tower City, it was $530 million, a said. Minshall’s Tower last Thursday that the Flats site is the $108 million difference. The second savings was a at Erieview and “fallback” site should engineering An earlier cost comparison spon- decision to use 80-year-old Public Galleria in problems scuttle plans for the Mall sored by the Greater Cleveland Part- Auditorium on the Mall for a Cleveland. The site. nership business group and released convention center ballroom. That, lawsuit alleges David O’Neal, chairman of Conven- last August estimated it would cost Mr. O’Neal said, saved $40 million. there are tional Wisdom, a consultancy in $583 million to build on the Mall The problems with the Tower $156,000 in Ocoee, Fla., that specializes in compared with $536 million at City site were its topography, the unpaid convention center planning and was Tower City. Both were more than the difficulty of creating enough commissions. retained by the county commissioner, $490 million tax revenue estimate set efficient loading dock space for FILE PHOTO/ told Crain’s last Friday, Feb. 6, that by GCP for the project. exhibitors to move their equipment RUGGERO FATICA cost is the overriding issue in the As a result, Merchandise Mart in and out and the need to relocate selection process. Properties and Conventional Wisdom Tower City parking spaces, Mr. “There is only one site you can sharpened their pencils and found O’Neal said. Lawsuit: Minshall touts afford,” Mr. O’Neal said, referring ways to cut costs at both sites, Mr. A lakefront complex near the to the Mall site. “There was only O’Neal said.It had the most success at stalled Flats East Bank mixed-use one site we could make work.” the Mall location, finding two ways to project of The Wolstein Group real Mr. O’Neal said Merchandise cut the price tag significantly. The estate concern is estimated to cost tower’s aesthetic appeal Mart Properties and Conventional first was an engineering decision that $367 million. However, that site has Wisdom made 14 side-by-side they could re-use the foundation of big drawbacks, Mr. O’Neal said. continued from PAGE 3 ownership, the 760,000-square-foot comparisons of the Mall site and a the current convention center. “It’s the cheapest to build, but it mergers include the Kahn Kleinman Tower at Erieview was 40% empty, competing site behind the Tower Mr. O’Neal said his partner, doesn’t have the other amenities,” law firm and the Lesco Inc. turf main- Mr. Minshall said, and now it is City Center complex of Forest City architect Richard Schmidt, has such as a critical mass of hotel tenance firm, a total of four floors of 25%. Chartwell Group in December Enterprises Inc., looking for ways to followed the engineering studies space and restaurants within a 10- office space. assumed Tower at Erieview’s leasing. trim project costs. and is confident that re-using the minute walk, Mr. O’Neal said. On the plus side, the owner has Mr. Minshall’s optimism stems “MMPI knew that if they didn’t existing foundation will work. The Mr. O’Neal said the Flats site also transformed much of two floors of from securing financing for the com- come up with something that was foundation holds back a water table is the riskiest of the three locations. empty retail space in Galleria with plex for eight more years, a new within the budget, the whole project under the convention center prop- “It’s the site for the next 25 years — Dollar Bank’s Cleveland regional heating and cooling system, and a was doomed,” Mr. O’Neal said. erty. Osborn Engineering Co. of if you had development exploding office and a bank branch as well as big block of 104,000 square feet of By December, they had whittled Cleveland has been hired by the around it,” Mr. O’Neal said. ■ the Cleveland Bar Association’s office contiguous office space with lake and conference space, plus a sprin- views. That space may gain the tower kling of local retailers. consideration as big blocks of offices Mr. Minshall says the complex is for large tenants are scarce in top-end better off now than before he arrived. buildings. Two key competitors — the GROUNDBREAKING INNOVATION. “People thought Galleria was 1100 Superior and Penton Media closed. It’s not,” Mr. Minshall said. “It buildings — have less vacancy. took three tries before we got the As for Galleria, Mr. Minshall refuses WORLD-CLASS TECHNOLOGY. Galleria right as an event center and to discuss its vacancy rate. Ironically, office space. While I am not happy, Galleria since Jan. 1 closes Saturdays while we have stresses, we have a hell except for appointments. That “saves FOUNDED IN NORTHEAST OHIO. of an opportunity here.” a bunch of money,” he said. “You At the outset of Erieview Land’s have to be realistic.” ■ The Northeast Ohio Technology Coalition, NorTech, in partnership with Fair: Retailers find value in Crain’s Cleveland Business, present the 2009 NorTech less expensive, classic toys Innovation Awards.

continued from PAGE 3 reluctant to try new merchandise. Join us as we honor the region’s remarkable Michael Ziegenhagen, owner of the “They’re going to go narrow and organizations that are setting new world standards five-store Playmatters chain, said deep in the stuff that’s working for for technological advancement from right here in even in a retail crunch, visiting Toy them,” he said. “They’re a little Northeast Ohio. Fair is an “indispensable journey” more apprehensive about the trial- that’s crucial to shaping his year. and-error thing.” Indeed, he said that in this environ- Pricing also will be an issue. WEDNESDAY ment, there are some advantages to Lisa Brody, public relations man- being the little guy. ager at Cleveland-based Creativity for While mass merchants such as Kids, said she hopes consumers’ FEBRUARY 18 Wal-Mart make big purchasing thriftiness will translate into a sales decisions about 15 months before boost in the company’s art-and-craft @ WINDOWS ON THE RIVER the holiday season, smaller buyers kits. The company also is aiming for a can do their homework at Toy Fair wider market by expanding its and then sit tight. preschool line and offering new toys In partnership with: “Independent retailers can hold aimed specifically at boys. Featuring off a really long time,” Mr. Ziegen- Jeff Bush, senior vice president of Keynote Speaker hagen said. “We can hold off buying Middlefield Duncan Toys, said while Ohio Congressman decisions until October. We don’t he’s seen lower attendance at trade make our inventory investment shows, Duncan sales are up by a Tim Ryan right up front.” double-digit percentage, in part Based on consumers’ wants in a because only serious buyers are down economy, Mr. Ziegenhagen attending. Mr. Bush also said in a Sponsored by: presented a list of what buyers are tough economy, makers of classic, seeking this year. simpler toys — such as Duncan’s Single tickets are $60 and corporate tables of ten are $540. “Give me an overall product that yo-yos and tops — tend to benefit. All tickets must be purchased in advance by visiting: has lots of features, has durability, However, Dotti Franks, vice presi- and is not going to cause disappoint- dent of marketing communication WWW.REGONLINE.COM/NORTECH2009 ment because of breakage, and give for Streetsboro-based Step2 Co., me what I consider fair retail,” Mr. noted that consumers also are after For more information, please contact Laura Franks at Ziegenhagen said. value beyond the price tag. 216-771-5388 or [email protected] Toymakers anticipate a demand- “They’re looking for the highest ing, competitive atmosphere. quality they can get for the best 7KLV\HDU·VÀQDOLVWVDQGDGGLWLRQDOHYHQW Kim Hammeren, director of special money, to have something that’s projects at Twinsburg’s K&M Interna- going to last through two or three information can be viewed at: tional, a distributor of nature-themed children, and then be passed on to WWW.CRAINSCLEVELAND.COM/MARKETING/NORTECHIA.HTML and plush toys, says retailers are wait- cousins and nieces and nephews,” ing longer to file reorders and are she said. ■ 20090209-NEWS--18-NAT-CCI-CL_-- 2/5/2009 3:56 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 9-15, 2009 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Ocean’s Eleven it’s not; brokerage will help him adapt to the market FEBRUARY 2 - 8 slowdown and handle some of the 11 listings Eleven River it plans to be he took to the firm. The big story: PNC Financial Services Group, With names such as Weston, Geis and ■ A residential project of modernist design the new owner of National City Corp., plans to Cresco on his resume, Mr. Wolf, 53, has 30 is on the drawing boards for the west side of eliminate 5,800 positions — 10% of its work force years in the region’s real estate business and the Rocky River. of more than 59,000 — as it contends with the even deeper roots. His grandfather, James Developer Andrew Brickman and the same recession. PNC said it expects to complete the cuts B. Wolf, ran National City’s realty unit group of partners that plans to build the 27 by 2011 to help save $1.2 billion annually. The Pitts- during the (first) Depression and was a Coltman townhouse project in Cleveland’s burgh-based bank reported a fourth-quarter loss name partner at Cragin, Morris & Wolf. Little Italy neighborhood also is proposing to of $248 million, or 77 cents per share, compared PHOTO PROVIDED Those partners started other brokerages, build 11 luxury townhouses in Rocky River with a profit of $178 million, or 52 cents per share, An artist’s rendering of a proposed 11-town- such as today’s Ostendorf-Morris Colliers that will resemble concrete cubes. in the like period last year. house complex in Rocky River. and the old Cragin Lang. — Stan Bullard “I wanted this project to make an archi- More tough times: Lincoln Electric Holdings tecturally significant statement in this desir- the economy.” — Stan Bullard Inc. announced cost-cutting decisions that include able location,” Mr. Brickman said in refer- A small incentive for reductions in staff, reductions in work hours and ring to Lakewood architect Scott Dimit’s communities to collaborate suspending the company’s match of contributions design for the townhouses. This Wolf finds ■ by employees to their 401(k) plans. The maker of Through Riverdale Partners LLC, the a new den Kent State University has received two welding equipment said it’s offering a voluntary developers own the 1.2-acre site near the grants totaling $500,000 to help promote, ■ separation program to all its 2,900 Cleveland Bridge Building in Rocky River. The project, Diversify, diversify, diversify. generate and fund ideas for collaboration bonus-eligible employees, regardless of years of known as Eleven River, will be up for final That mantra for coping with tumultuous among local municipalities. service. Lincoln Electric said the combination of approval Feb. 17 at Rocky River City Hall. times has taken another twist at the Kowit & The grants are from the Fund for Our ongoing programs and the actions announced last Construction financing — a deal killer for Passov real estate brokerage of Warrensville Economic Future, a consortium of founda- week should result in a reduction of more than 10% many plans — is in place, according to Mr. Heights. Longtime industrial broker and tions, companies, individuals and govern- in its global work force, with an annualized savings Brickman and land records. builder Jim Wolf just joined the firm to ments working to drive economic growth. of about $50 million. Despite a dreadful economy and housing launch an industrial unit there. The main project is dubbed a Call to market, Mr. Brickman said he plans to start Dennis Burnside, Kowit & Passov director Action, which is financed by a $300,000 Do you see a theme here?: Applied Indus- the project soon because it offers a special of office leasing, said the brokerage hopes grant, said Patricia Book, vice president for trial Technologies Inc. of Cleveland last week site, including boat docks near Lake Erie. Mr. Wolf can establish a beachhead in the regional development at Kent State. That confirmed it laid off 10% of its headquarters The glass-fronted, 3,300-square-foot units industrial market the same way that the firm grant will fund up to three projects submitted staff, or 34 full-time employees, in reaction to will cost more than $600,000. added an office unit in 2004 that now by local municipalities to pool resources to slumping demand in the recession. The local Though two other Rocky River condo- consists of six agents. The office drive diver- save money and be more efficient, Dr. Book cuts were part of a companywide reduction in minium developments have sputtered and sified the firm from a retail brokerage base said. A request for proposals likely will be which Applied, a distributor of bearings and 127 homes in a similar price range are for — a prescient move given today’s troubled launched this spring. industrial parts, laid off about 175 workers. The sale within a mile, Kory Koran, Rocky River retail real estate market. The second grant totaling $200,000 will reductions represent about 4% of Applied’s director of economic and community devel- After operating on his own for five years, help Kent State promote the program to the national work force of 4,300. The cuts have been opment, said the scarce riverfront site Mr. Wolf said he was “tired of working by public and to municipalities within a 16- taking place since December; the layoffs in means Eleven River’s “real competition is himself.” He believes hooking up with a county area. — Shannon Mortland Cleveland occurred the week of Jan. 26.

Around the block: Real estate brokers and investors Brad Kowit and Steve Passov are the new WHAT’S NEW CHOICE BITS owners of the block on the south side of Detroit Excerpts from recent Editor’s Choice news is bad news. Avenue between Warren Road and St. Charles blog entries on CrainsCleveland.com. The Cleveland Jewish News announced it Avenue that includes Lakewood’s INA Building. has reduced its work force “because of the It’s the first big West Side office purchase for worsening local and national economic the operators of the Kowit & Passov real estate Some businesses are situation.” Publisher Michael Bennett said in brokerage, who also are carving a niche for them- cobbling together gains a letter to readers that six full-time positions selves as property owners. The duo leads an were reduced to part-time effective Feb. 1 and ■ investor group that paid $3.68 million for the It turns out not everyone is down at the three positions — two full time and one part INA Building, 14701 Detroit Ave., the adjoining heels these days. time — were eliminated effective Feb. 15. Lakewood Professional Center building and an The Wall Street Journal on Feb. “We regret having to take these steps, and attached 300-car parking garage. 2 reported that while the reces- are sorry for the impact on individuals and sion “is battering big swaths of families,” Mr. Bennett wrote. “However, as it Professional split: The Breen & Co. office the U.S. economy, it (has) given became clear that advertising revenue is real estate brokerage filed a foreclosure suit a new lease on life to the tiny likely to decrease as much as 20% or against Werner Minshall’s shoe-repair industry, which more this year, we had no choice 40-story Tower at Erieview has been shrinking for decades. other than to cut expenses and Galleria in downtown THE COMPANY: Nutek, Chagrin Falls Nationwide, cobblers and quickly.” Cleveland as a means to THE PRODUCT: Bolt Off, LubFix their suppliers report markedly He said the newspaper, collect about $156,000 in higher revenues than a year which has a circulation of commissions the lawsuit and Shield It lubricants ago, as newly frugal Americans 12,500 and a readership of states are unpaid. Under Nutek founders Cathy Horton and Kim opt to repair their shoes rather than more than 45,000, receives Ohio’s brokerage lien law, Novotney say the soy-based household lubri- replace them.” nearly 90% of its revenue from a broker can sue for fore- cants are the kind of “smart green” products One business benefiting from consumers’ advertising sales. closure to force a building that should appeal to consumers concerned penny-pinching is Woodmere’s Chagrin Elsewhere in Ohio, The Associated Press owner into a sheriff’s sale to about the environment. Shoe Leather & Luggage Repair; owner Alex reported that three newspapers in the collect commissions. Cleve- FILE PHOTO/ They already appeal to Home Depot, which Romanov said sales are up 25% from last year. southwestern part of the state are halting land-based Breen & Co. filed RUGGERO FATICA the Nutek principals said has agreed to stock “We fix everything except broken rela- publication of Tuesday editions because of the foreclosure action in Werner Minshall Bolt Off, LubFix and Shield It. The products tionships,” said Mr. Romanov, 52. “Nobody the weak economy. Cuyahoga County Court of debuted in Home Depot last month in a store wants to do the job anymore.” “The Troy Daily News, Piqua Daily Call Common Pleas. Mr. Minshall, the Cleveland in Atlanta. That apparently includes his 25-year-old and The Sidney Daily News will begin the native who runs Minshall Stewart Properties of Nutek “brings a new perspective to a son, Ilya. new schedule next week,” according to the Bethesda, Md., said he plans to pay the commis- category traditionally dominated by petroleum- “Uninterested in learning to repair shoes, AP. “The Troy newspaper will print six sions by today, Feb. 9. See related story, Page 3. based products and incumbent technologies the junior Mr. Romanov in 2006 started an days a week, continuing the Miami Valley Corr strategy: Corrpro Cos., a Medina- that have not changed in 40 years,” the online extension of his father’s business,” Sunday News on Sundays. The Piqua and based provider of corrosion-control equipment company says. The Journal noted. “The business, American Sidney newspapers don’t have Sunday and services, signed a definitive agreement to be Bolt Off helps to reduce the frictions that Heelers.com, receives about 100 pairs of editions and will print five days a week.” acquired by Insituform Technologies Inc., a make nuts, bolts and other similar things shoes a week by mail from customers Frank Beeson, group pub- producer of sanitary sewer pipe based in hard to move. LubFix is a multipurpose lubri- around the country; they’re serviced by his lisher for Brown Publishing Chesterfield, Mo. Corrpro put the value of the cant for squeaks and creaks. Shield It is a dry father’s shop. The mail-in model works, Co. of suburban Cincinnati, transaction at $91 million. Corrpro estimates lube that protects surfaces from friction even says Ilya, because ‘people live in places that said the move will help each share outstanding of Corrpro common under tough climate conditions. don’t have a shoe cobbler anymore.’” avoid newsroom layoffs. stock will be converted into cash at $1.44 a share. For information, visit cathyhorton.com/ The newspapers’ combined Businesses/Nutek/tabid/438/Default.aspx. Heard the news today? total work force has been To keep up with local business news as it Oh boy, it’s tough reduced by about 10% by happens, visit www.CrainsCleveland.com. Send new product information to managing layoffs in recent months, editor Scott Suttell at [email protected]. ■ In the news business these days, the only the AP reported. 20090209-NEWS--19-NAT-CCI-CL_-- 2/4/2009 9:25 AM Page 1

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2009 Land Rover LR2 HSE THE LEGEND IS BUILT RIGHT IN. Exhilarating power and torque from the 3.2-litre inline 6 and six-speed automatic transmission with CommandShift® manual control get you wherever quickly. And even in the most challenging on-road or off-road situations, patented Terrain ResponseTM makes sure you come back. Advanced safety and handling technologies. And first-class cabin features ensure you’ll be able to get anywhere with style and comfort. STARTING AT $33,900 EPA rating, highway: 22 mpg* LAND ROVER SOLON 6137 KRUSE DR.• SOLON • 1-866-210-6707 www.landroversolon.com White with Tan Tufted Leather Seats,Maserati Multimedia Business Center (Two rear 10.4” LCD * Mileage may vary with options, driving conditions, driving habits, the vehicle condition, speed and trip length. EPA-estimated 15 mpg city. Stock # L01637 monitors in the back of the driver and passenger seats, CD/DVD/MP3 player,AV aux plugs, I- Pod docking station and two USB ports.Two wireless headphones, foldable keyboard via blue- tooth, 80 Gb hard drive, Microsoft XP,modem for wireless internet connection)

DESIGNED FOR THE EXTRAORDINARY MASERATI OF CLEVELAND 6137 KRUSE DR. • SOLON • 1-866-210-6707 www.maseratiofcleveland.com davis automotive group inc. 6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com

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