20101115-NEWS--1-NAT-CCI-CL_-- 11/12/2010 4:09 PM Page 1

Vol. 31, No. 45 $1.50/NOVEMBER 15 - 21, 2010

Fourth Frontier atop FitzGerald’s goals By JAY MILLER variety of programs and was the con- [email protected] County executive-elect outlines economic development strategy duit for $15 million in state and fed- eral economic development funds. Cuyahoga County executive-elect Frontier technology devel- bank as an incentive to These proposals mesh to a Ed FitzGerald won’t take office until opment program. He’s calling promote business expan- degree with ideas recommended by The next Frontier Jan. 1, but he’s already thinking it the Fourth Frontier and sion. a citizen-led county transition advi- Developing a $100 million venture about his relationship with the busi- he hopes it will have a $100 ■ Pursuing the elusive sory group in a report released last fund a la the Third Frontier, however, ness community and the impact his million kitty with which to goal of providing “one- September. That group suggested will depend on Mr. FitzGerald’s ability administration can have on business work. stop shopping” for busi- the county’s economic develop- to cut the cost of running county expansion in the region. ■ Assembling a group nesses seeking to expand ment efforts should be on a finan- government. In an interview with Crain’s, he of loaned executives who in or move into the county. cially larger scale than they are The county transition group said four items are at the top of his would consult with county FitzGerald The new county execu- currently. In 2009, according to its estimated that as much as $50 business to-do list: staff on economic develop- tive also has started to talk annual report, the county develop- million in savings could be found in ■ Creating a local equivalent of ment initiatives. about who will be on the new county ment department invested $8 the consolidation of county offices the state of ’s successful Third ■ Using the year-old county land economic development commission. million of county money through a See COUNTY Page 5

Colleges fret over Kasich’s education plan Next governor mum on budget blueprint

By TIMOTHY MAGAW [email protected]

Democratic Gov. made higher education a corner- stone of his administration over the last four years, but uncertainty sur- rounding Gov.-elect ’s plans for education has college offi- cials throughout champing at the bit for details. Mr. Kasich, a Republican, hasn’t released any particulars about his plans for higher education, and col- lege officials are careful in how they MARC GOLUB respond to the little they’ve heard. Joe and Debra Lukasik said they had trouble getting a loan to finance the opening of their third Subway store in a con- However, the potential fallout from course at Hopkins International Airport, so they pursued money online and secured a $300,000 loan. a looming $8 billion shortfall in the state’s next two-year budget, they say, is of paramount concern. “I don’t think it’s a concern about the new administration. It’s a concern MATCH.COM FOR MONEY See BUDGET Page 6 By MICHELLE PARK INSIDE [email protected] Shifting into high gear oe Lukasik’s search for a business loan in Ford Motor Co. is adding a New online sites pop up Northeast Ohio didn’t turn up a dime. second shift to the company’s After the local Subway franchise owner Brook Park engine plant, and auto that connect borrowers with and his loan consultant, Joe Wojtowicz, workers hope eventually to see a J were denied a loan by more than five third shift. Solid demand for Ford’s banks willing to issue loans local banks, Mr. Lukasik chose not to wait any EcoBoost engine is fueling the longer. He said he “robbed” his 401(k) of $100,000 added work. Read Dan Shingler’s to fund his third Subway shop, at Cleveland story on Page 3. See BANKS Page 53

SPECIAL SECTION 45 6 NEWSPAPER

71486 01032 This new section features a snapshot of individuals ■

0 leading NE Ohio into the future Page W-1 20101115-NEWS--2-NAT-CCI-CL_-- 11/12/2010 11:43 AM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010

CORRECTION COMING NEXT SLOW BUT STEADY A Nov. 8, Page One story incorrectly Ever so slowly, the grip of the recession is easing. Total compensation costs reported the number of letters Univer- WEEK for private industry workers rose 2% for the 12-month period that ended in sity Hospitals sent to independent September 2010, higher than the 1.2% increase for the 12-month period that medical providers inviting them to ended in September 2009, according to the U.S. Bureau of Labor Statistics. 700 W. St. Clair Ave., Suite 310, partner on the system’s accountable Among industry sectors, manufacturing workers fared best, with an increase of Cleveland, OH 44113-1230 care project. The number was 5,500. 2.9%. Here’s how the data break down: Phone: (216) 522-1383 Fax: (216) 694-4264 Percent change for 12 months ended September 2010, September 2009 www.crainscleveland.com REGULAR FEATURES A class of their own Publisher/editorial director: Industry Sept. 2010 Sept. 2009 Brian D. Tucker ([email protected]) Editor: Best of the Blogs ...... 55 Crain’s each year honors the Manufacturing 2.9% 1.1% Mark Dodosh ([email protected]) Managing editor: Big Issue ...... 10 achievements of individuals Trade/transportation/utilities 2.3 0.9 Scott Suttell ([email protected]) Classified ...... 52 throughout Northeast Ohio Financial activities 2.1 0.8 Sections editor: Editorial ...... 10 under age 40. This year’s Amy Ann Stoessel ([email protected]) Information 2.0 0.7 Assistant editors: Going Places ...... 12 group plays a critical role in Joel Hammond ([email protected]) Professional and business services 1.7 1.2 Sports Letter...... 11 the region’s business devel- Kathy Carr ([email protected]) Education and health services 1.5 2.1 Marketing and food Reporters’ Notebook....55 opment vision as it com- Senior reporter: The Week ...... 55 petes on the world stage. All private industry 2.0 1.2 Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Dirk Kruger ([email protected]) Nicole Mastrangelo ([email protected]) Dawn Donegan ([email protected]) Business development manager & classified advertising: Genny Donley ([email protected]) Office coordinator: :K\ Toni Coleman ([email protected]) Production manager: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Kristen Wilson ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 QRW" ([email protected]) Circulation manager: Erin Miller ([email protected]) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-877-824-9373

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Audit Bureau of Circulation © 2010 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 20101115-NEWS--3-NAT-CCI-CL_-- 11/12/2010 4:18 PM Page 1

NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Team NEO: ASTORY Leads up, OF STRIFE, SPIRIT final ‘I do’ Tiny Ashtabula County still tough village illustrates small towns’ struggles to Business attraction group sees survive tough economy 20% jump in interested companies By JAY MILLER By DAN SHINGLER [email protected] [email protected] There’s another sign of an improving economy to report — more companies are talking to Team NEO about RWELL — You might think bringing operations to Northeast Ohio. But it’s more of the nation’s housing crisis a “proceed with caution” signal than a green light. wouldn’t hit this peaceful New business leads for the nonprofit business attrac- tion group are up 20% over 2009, according to CEO Tom rural town, where 1,700 Waltermire. The numbers are back to the more robust Opeople live an hour east of Cleveland level of 2008. “We’ve got a big pipeline,” Mr. Waltermire said during a and a world away from real estate briefing with Crain’s editorial staff last Tuesday, Nov. 9. markets that bubble and burst. “But it’s tough to get them out the other end. Projects are But such is not the case. Orwell’s taking longer; people are cautious.” Mr. Waltermire talked about his organization’s efforts economy is closely linked with housing while unveiling its quarterly economic review, a look at and construction, and its people — how the Northeast Ohio economy is faring. That report’s information on jobs and business activity also shows including its industrious Amish resi- signs of improvement, with employment up and an dents — are hurting because of the improvement in gross regional product, a measure of the national and regional slump in home- dollar value of final goods and services produced in the See LEADS Page 8 building. “When the economy started taking INSIDE THE REPORT a slide, we slid with it,” Mayor Larry Inquiries from companies interested in establishing Bottoms said. or expanding operations here are up, according to business attraction group Team NEO. Other findings in The most recent hit was at Kraft- Team NEO’s quarterly economic review: Maid, which as recently as 2008 ■ the number of people employed in the third quarter was up employed 1,000 people in Orwell, DAN SHINGLER Jim Kule, owner of Valley Feed Mill Inc. in Orwell, said he’s negotiated payment 22,000 jobs over third quarter 2009; where it makes cabinets and other plans with his Amish customers in the past, but lately, he’s had to cut off some ■ employment is up 80,000 jobs since March 30, when See ORWELL Page 54 of those customers because of large unpaid accounts. fewer than 1.9 million people were employed; and ■ Northeast Ohio’s gross regional product, according to data from Economy.com, likely will be up 3.6% in 2010. THE WEEK IN QUOTES “Until you get on the “If I understand what Jobs roll off Ford Brook Park line ground and you really (Ohio governor-elect shut down Oct. 30. The last characteristics as a larger start going through ... John Kasich) is Second shift comes engine block from the V-8 engine, but with better foundry now is preserved at fuel efficiency. After selling and find how much saying, he knows that back as automaker the UAW’s union hall. well in some of Ford’s you can save through- higher education is That closing idled about popular automobiles, the uses new EcoBoost 300 workers when the company this year also out the system, I’m intuitive to the eco- foundry finally shut down, began putting the engine in engine more widely but so far all but 38 of them its most popular vehicle, reluctant to throw nomic recovery of our have new jobs waiting for Gammella the F-150 pickup. around numbers.” state.” By DAN SHINGLER them at the engine plant, That’s the chief reason [email protected] Mr. Gammella said. Those still out for the extra shift, said Ford spokes- — Ed FitzGerald, Cuyahoga — Luis Proenza, president, of work will have hiring rights and woman Marcey Evans. County executive-elect. Page University of Akron. Page One Ford Motor Co.’s new motor is likely be brought back if there are “We are adding employees at that One powering some job retention at the more increases in production, he plant to handle the volume demands company’s Brook Park engine works. said. we expect,” Ms. Evans said. The plant in December will begin In the meantime, Mr. Gammella In addition to anticipated “Many urban devel- “(The East Ninth a second shift, and auto workers said he still is lobbying hard to have demand for the EcoBoost in the hope eventually to get a third shift to Ford also use the Brook Park plant pickup, engine demand has been opment projects Street corridor) often produce engines around the clock. to produce four-cylinder engines. up because Ford’s sales generally “A lot of this will be dependent on He said he is optimistic that it will, have been increasing. The company simply would not get is viewed as a pass- consumer demand, but they (Ford) perhaps in 2011. announced its October sales were done without (tax through district. ... are saying for certain that a second Total employment at Ford’s up 19% from October 2009 and that shift is going in on Dec. 6,” United Brook Park facilities is about 600 its sales for the year through October increment financing).” We need to create Auto Workers Local 1250 president and will go up when the second were up 21% from the like period of — George Sarkis, a partner in vibrancy.” Mike Gammella said. shift starts in December, Mr. Gam- 2009. the Akron and Cleveland offices That shift will add around 200 jobs mella said. The F-150 has done even better of the Roetzel & Andress law — David Browning, managing to the engine plant and will help Mr. The plant has a hit with its Eco- and was the first vehicle, from any firm. Page 4 director of the Cleveland office of Gammella to keep employed some Boost engine, a six-cylinder model automaker, to notch sales of more the CB Richard Ellis real estate of his other union members who lost that uses advanced technology to than 400,000 units in 2010, according brokerage. Page 9 work when Ford’s adjacent foundry deliver nearly the same power to Ford. ■ 20101115-NEWS--4-NAT-CCI-CL_-- 11/12/2010 2:47 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010 Judge: Bank stuck with TIF

Charlotte-based bank. Economic development officials had feared Because repayment of the TIF bonds will reduce revenues from the effects of nullifying $6M bond repayment property, prospective buyers in a sheriff’s sale might offer lower prices By STAN BULLARD month rejected a major concession than they might have otherwise for [email protected] the lender sought in the Arcade the Arcade. And if Bank of America is case. Specifically, the bank tried to stuck with the Arcade to satisfy the Hyatt Regency Cleveland Arcade sidestep continuing the repayment debt — a frequent development offers an elegant setting for hotel of $6 million in tax increment these days in foreclosures — it would rooms, hat shops and eateries. But financing (TIF) bonds used to help need to make the TIF payments it for Bank of America, which has pay for a makeover of the century-old sought to shed. foreclosed on the property, the Arcade as a Hyatt. A filing by U.S. Bank attorneys, landmark Arcade promises a dose Bank of America wants to recoup who represented the trust that ser- of bitter pills. the last $14 million owed on a $33 vices the TIF bonds, argued that Although Cuyahoga County million first mortgage taken out Bank of America sought the court’s Common Pleas Court Judge Nancy by Arcade LLC, the Chicago-based OK to disregard the TIF repayments Margaret Russo has approved efforts partnership that owns the Arcade. purely to bolster the property’s value by Bank of America attorneys to However, the presence of the TIF at a sheriff’s sale. foreclose on the property, she last bonds complicates matters for the Bank of America spokeswoman Shirley Norton declined comment on the ruling. However, the ruling is a relief to economic development types. The city of Cleveland, for one, had supported U.S. Bank’s success- ful quest to keep the TIF intact. “TIF transactions play a unique and vital role in redevelopment of the community,” wrote Robert Bertovich, an assistant city law direc- tor, in a brief supporting U.S. Bank. U.S. Bank and the city argued TIF obligations supersede Bank of Amer- ica’s first mortgage. Shedding TIF payments could undercut future TIF deals in the region, the city argued. Bank of America attorneys had argued the TIF in this case was struc- tured so it set up the TIF’s repay- ment as a contract between the city of Cleveland and Cuyahoga County, which levies and collects property taxes. However, Judge Russo agreed with U.S. Bank and the city that repaying the TIF is a duty that goes with the property’s deed. The TIF payments increase yearly, from $15,000 annu- ally to as much as $850,000 in 2029, court records show. George Sarkis, a partner in the Akron and Cleveland offices of the Roetzel & Andress law firm who works in public finance and economic development, said the decision keeps intact a potent tool for revital- izing older urban areas. “Many urban development projects simply would not get done without TIFs,” Mr. Sarkis said. He noted that in his practice, many public authorities turn to TIFs It was the economy instead of property tax abatements to swing deals. Tax increment financing helps that slowed, fund a project’s cost by allowing the sale of TIF bonds that will be repaid not your ambitions. by additional future property tax receipts produced by the redevelop- ment or construction project. Judge Russo had ordered the fore- closure of the property last summer but left the TIF decision for later to give the parties more time to argue their positions. Bank of America filed the foreclosure case in 2009 after Arcade LLC, a joint venture of Related Midwest Cos. of Chicago and the Now’s the time to reinvest in your business. Pritzker family, failed to repay the ■ The Small Business Jobs and Credit Act gives you a new opportunity to jump-start your business’ loan when it came due. growth. Whether it’s buying new equipment, improving your working capital or reinforcing your overall finances, Fifth Third Business Bankers can help you take advantage of this new opportunity Volume 31, Number 45 Crain’s Cleveland Busi- ness (ISSN 0197-2375) is published weekly, except to reinvest in your business. Stop in your local Fifth Third Bank, call 1-877-833-6205, or visit 53.com, 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 and let’s get your business moving. week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing of- Loans subject to credit review and approval. Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. Fifth Third Bank. Member FDIC. fices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5

KSU, Fingerhut inch toward deal NORTHEAST OHIO REGIONAL SEWER DISTRICT SMALL BUSINESS Two sides make progress for a plan more modest in scope ample time to get the bonds to market and pace.” She noted that “no at a favorable interest rate through ENTERPRISE PROGRAM on university’s plan to specifics have been agreed to at this the federal Build America Bonds time.” program that expires at year’s end. make campus upgrades Paying for academic buildings The chancellor’s refusal to sign off with student fees is a rarity, as such on the plan, university officials said, fees typically are used by colleges to could threaten thousands of con- By TIMOTHY MAGAW pay for sports complexes and facili- struction jobs and could add as much [email protected] ties such as student unions. Kent as $57 million in interest costs if the State’s project includes upgrading sale of the bonds is delayed. ’s self- about 30 buildings across campus Rob Evans, a spokesman for the imposed deadline for the state’s that officials said have fallen into regents, said Mr. Fingerhut met approval to sell $210 million of disrepair over the years. with Kent State president Lester bonds for campus upgrades expired Mr. Fingerhut has said he is con- Lefton in mid-October and believes a week ago, but university and state cerned that allowing Kent State to “significant progress was made.” officials are pressing forward and impose an academic buildings fee Since then, the regents’ vice chan- hope to reach a compromise on a could lead other universities to do cellor for finance and the university’s plan that likely will be scaled back. the same, which ultimately could chief financial officer have been The university needs Eric Fingerhut, drive up costs for students — a meeting once or twice a week to chancellor of the Ohio Board of move that would go against the hash out the details. Regents, to sign off on the proposal. chancellor’s pillar of affordability in Mr. Evans said the regents However, Mr. Fingerhut hasn’t his 10-year strategic plan for higher haven’t seen an updated proposal Here’s the sign embraced Kent State’s plans to pay education in Ohio. He also has from Kent State, so he couldn’t back the bonds with revenue from a expressed concern over the cost of speculate on what the changes you’re looking for. series of new student fees. attending Kent State’s seven regional might include, but he expects the According to an e-mailed state- campuses. issue to be resolved soon. ment to Crain’s from Kent State Regardless, university officials “It shouldn’t be too much longer spokeswoman Emily Vincent, the have said they needed swift approval for us to get through it,” Mr. Evans university is now “assessing options from the regents in order to have said. ■ We’re expanding our small-business opportunities to provide economic benefits for the region and help local companies grow!

If your company is a small construction or County: Public-private partnership an aim engineering company or a provider of goods or professional services, we invite you to apply for continued from PAGE 1 “I’m not going to have an adminis- both Mr. Zanotti and Judy Rawson, our SBE program. mandated by the new county charter tration that’s made up just of the former mayor of Shaker that takes effect Jan. 1. But county people who are veterans of the Heights, are waiting to see how the revenue is sagging, and a potential public sector.” county economic development drop in state aid could force at least commission develops before giving APPLY & LEARN MORE at neorsd.org/sbe some of the savings to be spent on Hammer time the incoming county executive other county programs besides Mr. FitzGerald sees in the county their stamp of approval. The pair economic development. land bank an opportunity to assem- helped write the county charter that “I’m hoping we can hit that ble vacant parcels into developable created the new government. ($100 million number),” said Mr. industrial sites, urban farms and The new charter only says the FitzGerald, currently the mayor of parks. commission will have 15 members, Lakewood. “But it’s one of those “I want to see if that can be used each of whom will represent a ROUNDTABLE EVENT things that until you get on the as an incentive, or a tool, to pro- specific constituency, meet quar- ground and you really start going mote business expansion,” he said. terly and, along with the county Tax Planning and Insights through department by depart- The Cuyahoga County Land executive and director of develop- ment and function by function and Reutilization Corp. is a govern- ment, create and continually Change and Uncertainty find how much you can save ment-created nonprofit that can update a five-year strategic plan for throughout the system, I’m reluc- acquire vacant land and rehabili- county economic development. are the New Normal tant to throw around numbers.” tate or demolish foreclosed and The charter gives each of 14 With the Fourth Frontier, Mr. abandoned homes more quickly organizations the power to name FitzGerald would target county than traditional tax foreclosure. one member to the commission. investments to businesses that are Done strategically, the land bank Among the organizations with slots seeking to expand operations or can target its acquisitions so it can on the commission are the mayor that are ready to commercialize assemble parcels into developable of Cleveland, the Cuyahoga County products in development. And like sites, Mr. FitzGerald maintains. Mayors and Managers Association, the Third Frontier, the county Mr. FitzGerald’s idea of a single the Partnership, would set up a competitive process business development point of con- the Cleveland-Cuyahoga County for awarding money, rather than tact would help business owners, real Port Authority and the North Shore simply responding to requests for estate brokers and site selectors Federation of Labor. financing on a rolling basis. gain easy access to the incentives Ms. Rawson said she hopes the “I think the Third Frontier and infrastructure improvements new county executive will work works,” Mr. FitzGerald said. “I think available in the county. It also ide- with those appointing organiza- the concept is very sound, and if we ally would eliminate the bidding tions to populate the commission can create some budgetary capacity wars that often develop among with members with a broad range in the county’s budget to fund Cuyahoga County municipalities of skills and perspectives. Especially Wednesday, December 1, 2010 something like that, I think it could when businesses go shopping for important are people who will put 11:30 a.m. to Noon EST • Lunch be really effective.” incentives on their own. the interests of the entire county Noon to 1:00 p.m. EST • Roundtable Program To make the new government The idea was part of the transi- ahead of the interests of the organi- more professional, Mr. FitzGerald tion group’s recommendations and zations they represent. RSVP: Call 1.800.847.6424 or visit www.mcdonaldhopkins.com said he plans to create a loaned often has been discussed over the “I hope he will get together with executive program that would work years but never implemented. the appointing authorities to set ® with staff members in all parts of However, Martin Zanotti, one of the criteria and to have the necessary Attorneys on a Mission county government but would leaders of the county reform move- levels of professionalism and Your mission is our mission. We never lose sight of it. focus particularly on finding busi- ment and a former mayor of Parma collaboration and expertise so ness people to consult on economic Heights, said he believes that if Mr. they’re making their appointments development projects. FitzGerald has $100 million to dole with an eye to having a well-rounded “I want to make sure I have out, the county will be able to get commission,” she said. significant private-sector participa- support from the cities in the county. Matt Carroll, the city of Cleveland A business advisory and advocacy law firm® tion in the new government,” he “They haven’t had that hammer health department director who is said. in the past,” Mr. Zanotti said. leading the FitzGerald transition 600 , East, Suite 2100, Cleveland, OH 44114 Asked specifically about the kind Mr. Zanotti said he also likes Mr. team, said Mr. FitzGerald is talking 216.348.5400 of person who will be his director of FitzGerald’s plans for the land with all the appointing authorities. Carl J. Grassi Shawn M. Riley development, Mr. FitzGerald said bank. Mr. Carroll said he believes those President Cleveland Managing Member his search has begun but declined organizations are on the same page to identify any candidates. Casting a wide net as Mr. FitzGerald, “But I don’t think Chicago • Cleveland • Columbus • Detroit • West Palm Beach “We’re talking to people in the Beyond those specific early ini- he’ll try to dictate to them on who www.mcdonaldhopkins.com public and private sector,” he said. tiatives cited by Mr. FitzGerald, to appoint.” ■ 20101115-NEWS--6-NAT-CCI-CL_-- 11/12/2010 4:25 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010

Mr. Fingerhut, whose appoint- ment runs into the summer of 2012, Budget: New administration may ease regulations hasn’t stated publicly whether he intends to stay on through the rest of continued from PAGE 1 as governor, for instance, universities state’s higher education chancellor, drive the state’s economy. his term. In an e-mailed statement to about the (budget) situation we’re agreed to freeze tuition in exchange which elevated the post to a cabinet- The regents set various measures Crain’s, however, he said he looks in,” said Bruce Johnson, president of for stronger financial backing from level position. Gov. Strickland tapped to gauge their progress through forward to working with the incoming the Inter-University Council, a group the state. But in the current budget, a political ally — Eric Fingerhut — 2017, such as the number of degrees governor and noted, “We have made representing the state’s public uni- the governor permitted colleges to for the post, which carries a five-year awarded and the percentage of grad- good progress, but much more versities. raise tuition 3.5% to offset cuts in term. uates working in Ohio. remains to be done.” The budget dilemma has college state support. The move essentially politicized But with the election of Mr. Kasich, It’s likely that the overall goals of presidents bracing for cuts in their “This is a very austere economic the Board of Regents, which tradi- the future of that plan and Mr. the University System — boosting state subsidies, which represent climate,” said Luis Proenza, president tionally had been a “relatively neutral” Fingerhut’s role could hang in the enrollment and graduation rates, to roughly one-third of their individual of the University of Akron. “I would governing body, said Ronald balance. Mr. Kasich’s spokesman name two — won’t change. budgets. The Strickland administra- hope there would be some move- Abrams, president of the Ohio Asso- said it was “premature” to offer “I don’t see the strategic plan as tion already has delayed a $127.5 ment toward allowing each institu- ciation of Community Colleges. details about the governor-elect’s being a partisan issue,” said Morris million payment to colleges to patch tion the (financial) flexibility they Mr. Fingerhut led a movement to views of the chancellor’s strategic Beverage, president of Lakeland the state’s finances in the current might need, but in the context of that better align the state’s 14 public uni- plan or his role in the administra- Community College. “One of the cor- fiscal year, which ends June 30. affordability or access question.” versities and 23 community colleges tion, but Dr. Abrams noted that nerstones of that plan is to get more To put it simply, colleges want into a consortium known as the changes likely would come. Undoing the system? people in the higher education sys- more state money or the ability to University System of Ohio. In March “The new governor would be tem so more degrees can be earned.” raise tuition. It’s a delicate balance In March 2007, the Legislature 2008, Mr. Fingerhut introduced a 10- expected to put his people in place, The route to reaching those objec- state officials have faced for years. passed a law at Gov. Strickland’s year plan with the goal of making and those people would want to put tives, however, might shift to align In Gov. Strickland’s first two years urging allowing him to appoint the higher education a better vehicle to their brand on things,” he said. with Mr. Kasich’s vision for an educa- tion system with less bureaucracy and more money in the classroom. Just what that will look like, however, observers only can speculate. “I think the new governor will tinker with that somewhat,” Dr. Proenza said. “I expect there may be some differ- ences in how it will be expressed, but if I understand what he’s saying, he unlock knows that higher education is intu- itive to the economic recovery of our state.” Changing the course of the chan- cellor’s plan only a few years after its your inception poses some risk to the progress that has been made in higher education in Ohio, Dr. Abrams noted. Ohio’s shift to a performance-based financing formula, which considers company’s such factors as course and degree completion rather than enrollment in determining how much state support schools receive, has gained national attention, according to Dr. Abrams. potential “Any time you change direction midstream, you’re going to lose At KeyBank, our business bankers tailor some momentum,” he said. Loosening the regulations unique financing strategies to help you take Despite the uncertainties sur- your business wherever you want it to go. rounding the chancellor and the University System of Ohio, higher We help you get the funds to buy a new education observers expect a Repub- lican administration to be more building or renovate existing space, pay for receptive to easing some of the reg- ulations they say drive up costs. Mr. new equipment or upgrade technology. We Kasich, for example, has said he also help protect against fraud, manage would talk with higher education officials about rules and regulations your cash flow and make sure your payroll from which they’d like to be set free. Mr. Johnson noted that the Inter- is always accurate. University Council’s members primarily are concerned with reforming Whatever you need, we offer the kind of regulations that dictate the way colleges manage construction pro- straightforward advice to help take care of jects. Under state law, colleges and universities have a so-called “multi- all the things that matter most. ple prime requirement” where they must work directly with several contractors rather than with a single go to key.com/business chief contractor to manage construc- call 877-KEY2BIZ tion projects. Ronald Berkman, president of Cleveland State University, said his university is in the midst of a resi- dence hall construction project, and by law, the university is required to separately bid out every aspect of the project — such as plumbing, carpentry and excavation. “We always felt we could do it more effectively and more inexpen- sively” if the school could work through a single prime contractor, Dr. Berkman said. Mr. Johnson also noted that with the introduction of the University System of Ohio, there has been a “sense of centralized control” of the higher education system, which is something Mr. Kasich might Key.com is a registered service mark of KeyCorp. ©2010 KeyCorp. KeyBank is Member FDIC. approach differently given his plans to apply competitive business prin- ciples to state government. ■ 20101115-NEWS--7-NAT-CCI-CL_-- 11/12/2010 11:39 AM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010 Leads: Other local, national attraction groups see similar upticks

continued from PAGE 3 they simply may be adding capacity. past, Mr. Waltermire said, compa- because of lingering economic companies are more deliberate in 16 counties of Northeast Ohio that Rarely does Team NEO hear from nies come to Team NEO seeking uncertainty. making decisions, but he said once Team NEO serves. companies looking for a new cor- help to complete financing for their “We’re competing against inac- they do decide, they move quickly. Team NEO seeks out and hears porate headquarters. new plants and offices, and they tion,” Mr. Waltermire said. Vince Adamus, economic devel- from companies that think the time But while new leads are up, Mr. often are looking for that money “Our No. 1 competitor is a opment director for the city of is right to grow, a sentiment that Waltermire said, companies are taking from state or local governments. company deciding, ‘Uh, let’s not do Beachwood, also is seeing an accel- has been suppressed over the last longer to make final commitments. But even those companies that have it right now,’” Mr. Waltermire said. eration of activity. two years. These businesses may be That’s happening for multiple their financing lined up are holding “Our No. 2 competitor is, ‘Let’s go “Things are starting to percolate,” looking to expand geographically or reasons. More often than in the off on a relocation or expansion ahead, but let’s do it at home or at Mr. said. “People are starting to one of our existing sites.’” open up.” The No. 3 reason for not converting Jobs, output on the rise a qualified lead, Mr. Waltermire said, is losing the business to another state. Beyond its own metrics, Team NEO is reporting that total employ- We are not alone ment in the 16 Northeast Ohio In a typical year, Mr. Waltermire counties it tracks is up modestly, said, Team NEO receives inquiries according to data it buys from from 80 companies, with 10 compa- Moody’s economy.com. In the third nies committing to new operations quarter, the number of people in Northeast Ohio. Because some employed was up by 22,000 jobs companies take more than a year over the like quarter a year ago. from first contact to final commit- For the year, employment is up ment, it’s not accurate to translate 80,000 jobs since March 30, when those numbers into a batting average. employment reached its nadir. At Still, the organization is on track to that point, the number of people rebound from last year’s drop in employed in the region was less new leads, Mr. Waltermire said. than 1.9 million. At the end of the third The downside, though, is that the quarter, the number approached organization is working harder to get 1.95 million. those leads to convert into done deals. In line with those numbers, the Team NEO’s experience mirrors a unemployment rate dropped slightly, national trend. to 9.9% at the end of the third quarter “Overall, prospect activity is a from 10.2% three months earlier. little more brisk than it has been,” Using a forecast supplied by said Ron Starner, executive director economy.com, Team NEO reports of the Industrial that Northeast Ohio’s gross regional Council, a Norcross, Ga., association product in 2010 is projected to of corporate real estate decision increase by 3.6% after a disastrous makers. 2009 when the GRP dropped 6.1%. “At the midway point of the year, Economy.com estimates year-end Oscar T. we saw a pretty significant uptick,” GRP at nearly $170 billion, still well Oscar’s Anytime, Anywhere Shipping Mr. Starner said. off the high of $177 billion reached Mr. Starner also confirmed that in 2005. ■ UPCOMING EVENTS

The last in Crain’s Ideas at Dawn breakfast or call Christian Hendricks business breakfast series is set for at (216) 771-5182. Thursday morning, Nov. 18, at the Additionally, Crain’s annual Forty Ritz-Carlton Cleveland. Under 40 reception is Monday, Nov. “I just need to look at my ScoreBoard A panel will discuss planning a prof- 22. For more information on our ulti- itable exit strategy when selling your mate networking event, visit business. For more information, visit www.CrainsCleveland.com/ to know my business is moving in www.CrainsCleveland.com/ marketing/forty.html. the right direction.” Oscar’s business is moving along. Now he has ScoreBoard to make it move along faster. ScoreBoard can also help your business track all your credit card spending, monthly, quarterly, or yearly. Monitor your Jones Lang LaSalle and BrandMuscle® expenses by merchant or category and identify are companies you can trust for results any spending trends. And while you’re keeping score of your spending, you can also earn travel, merchandise or cash back rewards. Make sure your business is performing at its We are pleased to announce that Jones Lang LaSalle has peak. Make sure it has a ScoreBoard. been chosen as the real estate advisor to BrandMuscle. Visit your local branch or usbank.com/scoreboard

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NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Downtown planners seek to rebrand E. 9th corridor discussion. Leaders want former financial avenue The Huntington Building, which Optima bought last June, has known as mixed-use NineTwelve District 300,000 square feet of empty office space and stands to gain thousands By STAN BULLARD years ago in response to the growing more in the next few years. Namesake [email protected] vacancy problem on East Ninth. Mr. Huntington Bank plans to move to Pace also declined comment. Mr. 200 Public Square. If construction of civic groups Wiant’s return phone call to Crain’s East Ninth Neighborhood and stakeholders quietly are collab- Cleveland Business was missed. resumes, the Ernst & Young accounting orating on a strategy to recast the firm and Tucker Ellis & West law firm East Ninth Street corridor as the Wide open space will vacate Huntington for an office “NineTwelve District” in hopes of The Grubb & Ellis Co. brokerage tower near the . hiking the profile and fortunes of firm estimates East Ninth Street Other high vacancy buildings on the area formerly known as the north of Euclid is nearly 22% vacant, East Ninth include the former Amer- city’s Finance District. as of the end of September, with itrust Corp. headquarters building, Joseph Marinucci, president of two million square feet of empty the 1717 East Ninth St. building that the Downtown Cleveland Alliance, space in an area with nine million once served as headquarters of the a nonprofit that coordinates down- square feet of office space. former East Ohio Gas Co., and Key town security, sanitation and mar- Paul Westlake, managing partner Investment Center, 800 Superior keting efforts, on Nov. 4 declined to of the Westlake Reed Leskosky archi- Ave. discuss the plan in detail, saying he tecture firm, said he is involved in The latter’s former owner and others are still developing a the effort and that it “expresses surrendered it to the lender earlier consensus for the initiative. optimism rather than pessimism this year. However, Mr. Marinucci told a about where the district could go.” Even with its woes, the corridor meeting last month of the NAIOP He said he’s worked on studies of STAN BULLARD still houses thousands of employees th Northern Ohio real estate group vacant office and retail space and The proposed NineTwelve District would stretch from East 12 Street to East at PNC Center, the Anthony J. Cele- that the plan is to promote mixed the floor plates of existing buildings Ninth running east to west, and from the lakefront to Euclid Avenue running north brezze federal office building and uses of space to fill empty offices to help focus government attention to south. other skyscrapers along its length. along the corridor. A goal is to on the former finance district. East Ninth also passes Progressive create the kind of activity after busi- “It’s like multiple Terminal Towers Mr. Marinucci said publicly at about Optima’s plans for the Hunt- Field and ends at the Rock and Roll ness hours that has emerged on of vacant space,” Mr. Westlake said, NAIOP that he has met with Chaim ington Building in downtown Hall of Fame and Museum, the East Fourth Street and in the city’s referring to Cleveland’s iconic, 700- Schochet, investment executive for Cleveland. Mr. Schochet did not home of most of the city’s lakefront Warehouse District and Tremont foot office tower on Public Square Optima International of Miami, return two calls last week about the development efforts. ■ neighborhoods. The nascent NineTwelve District David Browning, managing director would stretch from East 12th Street of the Cleveland office of the CB to East Ninth running east to west, Richard Ellis real estate brokerage, and from the lakefront to Euclid said the plan is designed to “create Avenue running north to south. a brand for what we consider the That area is outside existing com- 2 core of downtown.” munity development corporation help inform “It often is viewed as a pass- areas, such as the Warehouse District, through district, which fails to con- Gateway Neighborhood and Play- sider the quality of organizations houseSquare. Is your portfolio positioned for potential and the people that are there,” Mr. Some of the plans under discus- Browning said. “We need to create sion include seeking city support for benefits from global opportunities? vibrancy and brand that shows street and park improvements and good things are happening there.” steps to encourage development of It may not be as well positioned as you think Mr. Browning declined to expand mixed-use properties. The latter is on the concept, which resulted from because more vacant office space efforts that he, Allen Wiant of Play- sits in the district than office-tenant houseSquare Real Estate Services expansion and new companies will COME TO OUR SEMINAR AND and developer Dick Pace began two ever fill. FIND OUT HOW MERRILL LYNCH CAN HELP YOU BENEFIT FROM THE WORLD OF GLOBAL INVESTING.

Investor ups stake in LNB Bancorp Thursday, November 18, 2010 12:30 P.M. lunch & 6:30 P.M. dinner Investor Umberto ON THE WEB Story from strategies, a P. Fedeli again is www.CrainsCleveland.com. merger with Marriott Cleveland East urging those who another bank 26300 Harvard Road govern and manage Lorain National included. Cleveland, OH 44122 Bank to improve the bank’s perfor- There is nothing that can help or mance and seize growth hurt a bank more than Speakers: Is it time to increase your exposure to global opportunities. credit quality, Mr. Fedeli Peter Dougherty, CFM In a filing last Wednes- said in an interview last investment opportunities? Vice President day, Nov. 10, with the week. He said improving Merrill Lynch believes that investors seeking Advisor Securities and Exchange credit quality should be growth may want to consider looking beyond U.S. Brian Young, CFP® Commission, Mr. Fedeli LNB’s No. 1 priority, and companies. By investing globally, you could benefit asserted that the bank’s he noted work in that di- Vice President parent company, LNB Ban- rection has begun, as the from increased potential for return, reduced portfolio Wealth Management Advisor risk levels and broader diversification to assets that corp Inc., must continue to company in its third-quar- Space is limited. improve credit quality sub- Fedeli ter earnings release in do not move in tandem with U.S. investments. stantially and to decrease costs. October stated that its non-perform- Call Jennifer Nowak at (440) 542-6140 Our informative seminar, “Seizing Opportunities in Mr. Fedeli, president and CEO of ing assets were down from the sec- or e-mail [email protected] to Today’s Global Markets,” will help you: The Fedeli Group, an insurance ond quarter. reserve your place today. brokerage in Independence, and a The nonperforming assets, Q Understand opportunities for growth— longtime investor in local banks, however, were up from a year earlier. at home and abroad shared several recommendations in As of Sept. 30, they totaled $45.8 a filing he said was required after he million, or 3.96% of total assets, Q Think strategically about your current asset increased his stake in the company compared with $43 million, or allocation another one percentage point, to 3.65% of total assets, as of Sept. Q Consider a greater allocation to global 6.1%, or 474,985 shares. In the 30, 2009. Mr. Fedeli also urged investments past 60 days, Mr. Fedeli purchased LNB Bancorp to grow revenue by Q Take advantage of potential market opportunities 65,404 shares for an aggregate adding quality loans to its books purchase price of $307,486. and increasing its deposits. There Global investing poses special risks, including foreign taxation, currency fluctuation, risk associated with possible differences in financial standards, and In July, Mr. Fedeli made other are few community banks left in other monetary and political risks. Diversification is an investment strategy that spreads a portfolio’s investments—and, therefore, risks—among different recommendations to the company Northeast Ohio, he said, and Lorain asset types, market sectors, industries and individual securities. Diversification can help protect the portfolio’s overall value if the value of one security type, sector or security drops sharply. Asset allocation, diversification and rebalancing do not protect against loss or guarantee a profit in declining in a filing required after he’d National Bank can take advantage markets. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) acquired a stake in LNB of more by growing relationships. and other subsidiaries of Bank of America Corporation. Investment products: than 5%. He suggested then that “The best thing they can do is Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value the company reduce the size of its significantly improve performance,” MLPF&S is a registered broker-dealer, member Securities Investor Protection Corporation (SIPC) and a wholly owned subsidiary of Bank of America board and explore long-term growth Mr. Fedeli said. Corporation. © 2010 Bank of America Corporation. All rights reserved. 20101115-NEWS--10-NAT-CCI-CL_-- 11/11/2010 4:38 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Get it? e wish Joseph Regano was right. However, we believe he is not. Mr. Regano is superintendent of the Solon City Schools, and he was quoted lastW week in a Plain Dealer story that looked at the financial disarray of public education in Ohio. Aware of the rejection by voters of operating levies in many districts, Mr. Regano predicted that school systems will continue to make sacrifices to appease voters who themselves have been victims of job FROM THE PUBLISHER losses and pay cuts. “We all get it,” Mr. Regano is quoted as saying. “You’ll see changes that will reflect what’s happening in the private sector.” Rail system fight is a road to nowhere We’re not so sure. The basis of our belief is largely anecdotal. However, ome day, I want to hear a politi- our two states, newly elected GOP gover- Ray LaHood. In a letter to the governor- cian — other than George nors are opposed to these mandated elect, the cabinet member said that $400 we know of too many teachers’ unions that dig in Voinovich — speak about spending “high-speed rail” boondoggles. million must be spent on Ohio’s part of their heels when their school boards during contract the public money as if it was his The new governors don’t believe in the planned upgrades to the nation’s rail talks push for employees to cover more of their Sown. the efficacy of railroad projects that have systems. In other words, “even though medical expenses. The same is true when they’re And for those of you familiar with our little chance for long-term success with- this is your money, we’ll be the judge as asked to reduce their authorized sick days so that former mayor, governor and (soon-to- out ongoing operating subsidies from to how it will be spent.” their districts don’t need to hire as many substitute be-former) U.S. senator, you know that states ill-equipped to add more to their They dangle the prospect of thou- teachers, or to be paid no longer for the sick days means being very cautious. Sen. plates of unfunded mandates. sands of construction jobs. Who cares, if they don’t use. Voinovich, while he was in his BRIAN And let’s face it — that’s what it doesn’t change the way we travel We can’t imagine the howling that would take previous offices, reminded us TUCKER the “3C” program to improve (which it won’t) and then saddles us with place if school boards were able to unilaterally cut regularly of the “need to do service between Cleveland, a service that must be subsidized by more with less,” and intends to Columbus and Cincinnati is. ever-stressed state coffers (which it will)? the pay of their salaried employees — something return to his modest home in Even in densely populated Gov. Strickland, the now-lame duck, extremely common in the private sector during the as he begins the areas such as England, which says the state will continue with a $25 economic slump. And heaven forbid someone next chapter in his life. never had a postwar highway million phase of engineering and design touch public education’s sacred “35 and out” retire- So I understand that Obama construction explosion and as long as he’s governor. How many ment bonanza, where teachers and administrators administration officials don’t whose residents still live in more century-old sewers must cave in can walk away from their jobs in their late 50s and want newly elected Republican densely concentrated areas, and cripple a downtown? How many still receive a check equal to a fat majority of their governors throwing wrenches trains don’t run without subsi- bridges must collapse? former pay. That’s an unheard-of possibility for into their plans for the stimulus programs dies. In Ohio, the same fate awaits. I have to admit that a stimulus spending most of the taxpayers who ultimately are the source designed to lead us into an economic re- John Kasich, Ohio’s governor-elect, program seemed to be a good idea when covery, especially if the crowing is more asked the Obama administration for per- the world’s economy was dangling by a of the money that goes into the State Teachers about scoring political points in antici- mission to use the $400 million approved thread. But why couldn’t we be spending Retirement System of Ohio. pation of the next presidential election. for railroad improvements instead for that money on things that are in dire It’s too bad financially strapped school districts That said, I’m having problems with other needed transportation infrastruc- need of fixing, rather than on a social can’t file for Chapter 11 bankruptcy protection like this nonsense going on between Wash- ture projects in the Buckeye State. experiment disguised as a part of some private companies can. They’d be able to go ington and Wisconsin, and now Ohio. In No way, said Transportation Secretary ill-conceived “energy policy”? ■ through reorganization proceedings that would free them from contracts with terms that are unsustain- able in an economic environment where the state THE BIG ISSUE can’t serve as a backstop because it, too, is broke. Repeated rejection of operating levies statewide Where should the federal government make cuts if it needs to decrease its spending? hasn’t produced the radical change in educator compensation that many taxpayers apparently want to see. However, the ludicrous nature of their retire- ment benefits just may hit educators in the face once they become more aware of how badly the State Teachers Retirement System is underfunded. Before the recession, the number of years it would have taken to pay off the retirement system’s accrued unfunded pension liabilities stood at 41.2 — well above the 30-year statutory maximum set by the state. But, because of the hits the recession dealt TASSO PARIS SHELINA HATCHER DENNIS ROBERTS MARTIN FAEHNER to the pension fund’s investments, the system’s unfunded liability from July 2008 to July 2009 nearly Pepper Pike Cleveland Mayfield Heights Strongsville doubled to $36.6 billion and the period to fund that That’s a tough question, but I I would say roads. Because Programs that are deemed I would cut congressional liability was deemed to be “infinite.” The latter means would have to go with military Medicare? No. Social Security? inefficient. I can’t say cutting salaries by about 10%. I costs. I think we’re over-spending No. Education? Definitely not. by category makes sense. I haven’t had a raise in three that unless changes to the plan are made, the on the military and I think we I hate to say that, but I think think a lot of the categories you years. I still have a job, but I pension fund eventually will be unable to pay benefits. need to get our boys back the other things are more probably need. But I’ll bet you haven’t had a raise in three We hate to think it will take a serious threat to their home where they’ll be safe. important. there are inefficiencies buried years. And the same thing for retirement for educators to get the need to take a And the quicker the better. in many of the programs. the rest of the federal employees. realistic look at their compensation. But if it is, so be it. ➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. 20101115-NEWS--11-NAT-CCI-CL_-- 11/11/2010 3:38 PM Page 1

NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

parks. In April, Crain’s wrote about does anything need to be done? SPORTSBIZ ON THE WEB For a daily the Indians seeking ideas from Should college athletes be free recap of SportsBiz news architectural firms for changes to agents and college athletics be run To submit Northeast Ohio-related are very high that the parties will in Cleveland, log on to . Where do you like a free market? sports business news, send an e-mail settle the Bentley case rather than go www.CrainsCleveland.com. see opportunity for them inside the Jim Juliano: Your questions deal to assistant editor Joel Hammond at to trial, but we will have to see how it stadium? with a combination of ethical and [email protected]. Follow him plays out. Jim Juliano: The Tribe will be economic pressures that will require at www.twitter.com the NBA and NFL? playing its 18th season at Progressive coordination among several interest /joelhammond. SportsBiz: You’ve written Jim Juliano: My crystal ball says that Field. It remains a premier ballpark groups. and research extensively lockouts in both the NBA and NFL for baseball. The NCAA has jurisdiction over In the latest installment naming rights deals; if are quite possible. Both sides are First of all, it may be time for some the college players, but not profes- of a weekly Q&A that runs Browns owner Randy Lerner setting aside war chests for a long new paint and redecorating. There is sional agents. The players unions on the SportsBiz blog at ever entertained offers, battle. However, there are several no substitute for a clean and shiny have jurisdiction over the agents, but CrainsCleveland.com, Jim would he get good ones? forces at work that would push the ballpark experience. not the college players. The leagues Juliano, a sports law expert Would it be a local company? parties toward a settlement without Going a bit further, there is a trend have the ability to bargain with the at Cleveland law firm Nicola, How much money would it a lockout. toward enhancing the digital media players unions, but not the agents. Gudbranson & Cooper, Juliano net the team? The players unions and the team for spectators. For example, one The team owners have the power to tackles some of the hot Jim Juliano: Many factors owners have invested a great theory is that the fan experience hire or not hire a college player for topics in sports business today. affect the terms and conditions of a amount of time, effort and money in watching a game on TV is so good any reason, but the player’s athletic naming rights agreement, such as developing the goodwill of the fan that fans are staying away from live ability likely will trump behavior SportsBiz: The Browns have settled the perception of the success of base. games. So in reaction the Indians problems. with former wide receiver Joe Jure- the team in the future, the current The risk of alienating the fan base, may want to think about streaming No one entity has the ability to vicius on a staph infection lawsuit; economy and future outlook, the even for a short time, would be very current information to the fans who control the entire system. If it were LeCharles Bentley since has sued. local and national media coverage of high in the event of a lockout in have handheld devices. possible to coordinate and line up Will there be a similar outcome? Do the team and the stadium, and the either league. But, fans will get over If MLB will permit it, the Indians the interests of all of these entities, a other cases of staph across the team’s presence in digital media. A it. Ultimately, both the players could stream audio commentary, comprehensive revision of rules league help the Browns? local company that has a national unions and the team owners reap instant statistics and video replays might be possible, but this is unlikely Jim Juliano: Each case is different. A profile would be ideal. Mr. Lerner great benefits from not only direct so that a fan at the game will have to happen. suit of this nature involves two main should have a number of prospects fan revenues (such as ticket sales) much more information than Personally, I think that college questions: liability and damages. if he so chooses. It is likely that the but also media rights and digital appears on the scoreboard. athletes should remain amateur and Both are open legal questions that deal would net several millions of media revenues. The negotiators not be permitted to earn compensa- the parties may have to litigate dollars per year over the next five or work hard, and the parties will come SportsBiz: Auburn’s Cam Newton is tion for their services. through the court system. Very few 10 years. to an agreement eventually, but a the latest college athlete rumored Others will disagree, and a cases go to trial these days. The court lockout in either league would not be to have some unscrupulous deal- number of valid arguments are dockets are full, the high expense of SportsBiz: Crain’s wrote recently a surprise. ings. Is there anything that can be already in play. For the time being, litigation faces both parties and the about the effects on downtown done to stop what seems like a we are going to be living with the lawyers will be working hard to clarify Cleveland of potential pro sports SportsBiz: You wrote in the spring parade of eligibility issues stem- case by case enforcement that has the facts and legal issues. Chances lockouts. How likely are lockouts in of finding hidden dollars at ball- ming from contact with agents? Or, been highlighted recently. LETTER New county government must foster collaboration ■ As the new county administration tions such as the Cuyahoga County takes office in January 2011, its ability Mayors and City Mangers Associa- to collaborate with the myriad of tion, finance officers, service direc- local and regional government enti- tors, police chiefs associations and ties will, to a great extent, determine many more. Often, these associa- whether or not it succeeds as a force tions have spawned collaborations for positive change. that have had a significant and posi- While the word “ugly” may be too tive impact on the services they strong, one hardly can deny that provide. politics in this region is far from pret- Over the past year, the County ty and intergovernmental collabora- Reform Commission has sought tion is stuck in this environment. Yet ideas from hundreds of citizens with all the media coverage of who have volunteered to serve on corruption in county government, it committees and work groups that is easy to forget that the vast majority collaborated to provide a host of rec- of public servants in Northeast Ohio ommendations to the new adminis- are both ethical and competent. tration. It will be a challenge for the new These work groups included citi- county administration to bridge the zens, county employees, local gov- credibility gap that currently exists. ernment officials, academics and the However, this challenge also presents private sector. I had the opportunity an opportunity for the new leader- to serve on one of these work groups. ship to collaborate with local and Involving the citizens in reforming regional entities to facilitate eco- the county is a two-edged sword. It nomic recovery in Northeast Ohio. will be essential for the administra- Speaking at the First Unitarian tion to immediately collaborate with Church’s Community Forum, these folks and implement their Pepper Pike Mayor Bruce Akers said recommendations to the extent that Northeast Ohio communities practical and assure the people who spend too much time competing gave generously of their time, energy against one another in the name of and talent that they were taken economic development. There are seriously. Anything less will be more than 55 autonomous cities and correctly perceived as “business as villages in Cuyahoga County. The usual.” administrative cost of these admin- istrations suggests that “economies Tom Cozzens of scale” could be achieved through Director effective collaboration resulting Unger International Center for in improved operating efficiency, Local Government Leadership reduced operating costs, increased Maxine Goodman Levin College of expertise and improved services to Urban Affairs residents. Cleveland State University “These fragmented communities cannot compete in a global economy,” Mayor Akers said. “We’ve got to lose WRITE TO US this ‘winner take all’ mentality.” Send your letters to: Mark Dodosh, Collaboration is not new to editor, Crain’s Cleveland Business, government. Government officials 700 W. St. Clair Ave., Suite 310, have been collaborating for years as Cleveland, OH 44113-1230 members of professional associa- e-mail: [email protected] 20101115-NEWS--12-NAT-CCI-CL_-- 11/10/2010 2:26 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010

HUDSON FINANCIAL ADVISORS INC.: Pike to partner. GOING PLACES Janice Cackowski to office manager. JOSEPH B. JEROME AND ASSOCI- JOB CHANGES UNIVERSITY OF AKRON: Chand MCMANUS, DOSEN & CO.: Bryan ATES: Andrew T. Czarzasty to Midha to dean, Buchtel College of M. McManus to staff accountant. associate. DISTRIBUTION Arts and Sciences. SS&G: Jesse Ewing to graphic WESTON HURD LLP: Brandon M. designer; Nannette Robison to Fairless to associate. APPLIED INDUSTRIAL TECHNOLO- ENGINEERING senior associate; Deborah Troyan to GIES: James A. Jeffiers to area vice administrative assistant. MANUFACTURING president, Midwest area. TIPTON DESIGN AND ENGINEERING: Jeffiers Boyle Pike Richard Roman to director of SS&G HEALTHCARE SERVICES GOLDSMITH & EGGLETON INC.: sales. LLC: Brenda Schnitz to medical Brian Hill to director of materials. Martin Kern to sales representatives; EDUCATION Monica Gasbarre to vendor develop- billing specialist. GRAFTECH INTERNATIONAL: CUYAHOGA COMMUNITY COLLEGE: ment specialist; Cynthia Cansky, FINANCE WALTHALL, DRAKE & WALLACE Quinn Coburn to vice president, John W. Marr Jr. to dean of academic Tyler Ford and Heather Gaski to ac- HOME SAVINGS BANK: Colin Boyle LLP: Bruce Bechhold, Bob Sustar, corporate treasury. affairs. counts receivable specialists; Linda to assistant vice president. Debbie Fellenstein and Adam Deal. LAKE ERIE COLLEGE: Brian Dirk to Hendricks to business development NONPROFIT administrative assistant; Alin Brinda to chief financial officer and associate FINANCIAL SERVICE HEALTH CARE vice president for finance; Christopher MAY DUGAN CENTER: Blanca AX developer; Rebecca Lapka to Harris to dean of admissions and CROWE HORWATH LLP: Rebecca KENDAL NORTHERN OHIO: Ellen Figueroa to director of operations. marketing services client manager; financial aid; Susan Licate to director Brugler to manager, performance Pacholski to senior independence Lindsey Clymer to marketing specialist; of alumni and public relations; Ruta business unit. administrator. SERVICE Nicole Petras to ecommerce coordi- Greiner to graphics manager; Billie DEIMLING FORBES & ASSOCIATES PROFORMA: Ed Hainrihar to director nator; Matthew Webber and Jason DiLella to coordinator of admissions INC.: Michael J. Elliott to senior LEGAL of vendor development; Dean Manzetti Clark to conversion specialists; Mira marketing and recruitment events. accountant. GALLAGHER SHARP: Michael J. to director of training; Amy Fulton and Barry to lead analyst; Lucie Wailani to new owner development administrative assistant; Thomas Boisvert to data- base specialist. TECHNOLOGY EMERALD CONSULTING GROUP: Chris O’Neil to managing partner.

BOARDS AMERICAN BOARD OF CRIMINAL Piling the family into the car and driving LAWYERS: Gerald S. Gold (Gold & Pyle LPA) to president. to the Grand Canyon? Am I wrong to think IDEASTREAM: Robert C. Smith (Spero Smith Investment Advisors) to chair; you’re supposed to relax on vacation? Edward P. Campbell to immediate past chair; Larry Pollock to treasurer; William R. Stewart to secretary.

AWARDS AMERICAN COLLEGE OF DENTISTS: Ed Hills, D.D.S., (MetroHealth System) was named a fellow. INTERNATIONAL COMMUNITY COR- RECTIONS ASSOCIATION: James J. Lawrence (Oriana House Inc.) received the 2010 Margaret Mead Award. MINORITY BUSINESS SOLUTIONS INC.: Hilton O. Smith (Turner Construction Co.) received the Trailblazer Award. NORTHEAST OHIO HISPANIC CHAMBER OF COMMERCE: Ruth Ramos and Tameka L. Taylor (Compass Consulting Services LLC) received the 2010 Female Entrepre- neur of the Year Award. SHOES AND CLOTHES FOR KIDS: Theresa Corey Bishop (Dominion) received the 2010 Morrie Sayre Founder’s Award for Outstanding Volunteerism.

Send information for Going Places to [email protected].

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From college presidents to Here’s just a snapshot of some CEOs, there are many people of those who are helping to lead who make Northeast Ohio tick. the region into the future.

DAVID ABBOTT tion; member, Akron Tomorrow years, we’ve invested heavily in new History building we can do,” Dr. Berkman said In the news: “FedEx is honored it was technology to support advancements in Cleveland this past spring. Dr. Berkman at the Executive director asked to support for the rescue and digital media,” Mr. Alexander said in a Age: 53 time said university leaders were The George Gund Foundation relocation of the endangered logger- company release about its second Type of organi- creating a 10-year campus plan that Cleveland head sea turtle eggs and will provide consecutive Leading EDGE award in zation: Nonprofit will include multiuse housing and Age: 58 transportation in our unique air-ride May. The company said at the time that Involvement: possibly new classrooms, as well as Type of organization: Nonprofit suspension, temperature-controlled the sluggish economy actually helped Greater Ohio updated labs and research space. Involvement (professional/civic): vehicles to provide a safe and secure contribute to a more than 30% increase Policy Center; Chairman, Fund transportation environment,” said Ms. in revenue last year as BrandMuscle council, Sustain- DANIEL E. BERRY for Our Economic Albanese, in a July 11 Summit County helped other companies cut costs. able Cleveland 2019; Doan Brook Future; board Citizens Voice story about volunteers Watershed Partnership; Cleveland President, CEO member, Ohio relocating hundreds of sea turtle nests ART ANTON EcoVillage; Northeast Ohio Ecosystem MAGNET (Manufacturing Advocacy Grantmakers away from oil-polluted beaches to Consortium & Growth Network) Forum; Group Plan Florida’s east coast. President, CEO In the news: “The most successful and Cleveland Commission Swagelok Company innovative businesses pay attention to Age: 62 (appointed by ANTHONY J. ALEXANDER Solon the triple bottom line,” Mr. Beach said Type of organization: Economic Cleveland Mayor Age: 53 in September as keynote speaker of development, manufacturing Frank Jackson); President, CEO, board member Type of organization: Manufacturing Crain’s second annual Emerald Awards. Involvement: Board member, chairman, Planning and Urban Design FirstEnergy Corp. Involvement: Board member, Forest The triple bottom line he is referring to NewBridge Cleveland Center for Arts Working Group Akron City Enterprises is people, planet and profits. and Technology In the news: In 2010, the George Age: 59 Inc., The Sherwin- and Vocational Gund Foundation committed $2.5 Type of organization: Utilities Williams Co., JODI BERG Guidance million to help launch the Cleveland Involvement: Board member, Edison Olympic Steel Inc. Services; President Schools transformation plan. The Electric Institute, and University member, Society Vitamix Corp. foundation anticipates providing an the Association of Hospitals; board of Manufacturing Olmsted Township additional $4 million in the second and Edison Illuminating chairman, Magnet Engineers Age: 45 third years of the plan. Companies, the In the news: In the news: Mr. Nuclear Energy Though normally Type of organization: Manufacturing Berry always has MONTE AHUJA Institute, the quiet about his Involvement: Member, North American been active in Institute of Nuclear own company, Mr. Anton often is in the Association of high-profile organizations around North- Chairman, Power Operations news as a supporter of manufacturing, Food Equipment east Ohio, including as an executive University Hospitals Health System and the Ohio including this past June when he gave Manufacturers; vice president for the Greater Cleveland Cleveland Electric Utility the keynote address at the annual Women’s Food- Partnership. Most recently, he was in Age: 64 Institute meeting of Cleveland-based Wire-Net, a service Forum; the news in April for taking over as CEO Type of organization: Health care In the news: Mr. Alexander has manufacturing advocacy group. Housewares of Magnet. Involvement: Founder, board member, pursued myriad state approvals for the Export Council of Transtar Industries $4.4 billion merger with Allegheny REBECCA BAGLEY North America; ANNE E. BOMAR Inc.; United Way Energy Corp. of Pittsburgh. Mr. Direct Marketing President, CEO Senior vice president, general Greater Cleveland Alexander said in September that the Association; Inter- NorTech manager In the news: Mr. merger will “grow our customer base, national Foodservice Manufacturing Cleveland Dominion East Ohio Ahuja’s generosity service area and utility assets; enhance Association Age: 38 Age: 47 to University and strengthen our generating fleet; In the news: Vitamix was one of 22 Type of organization: Economic Type of organization: Utilities Hospitals helped and create significant benefits for our companies nationwide in 2010 to development Involvement: Board member, American spawn the under- shareholders, customers and employees.” receive the Presidential “E” Award for construction 144- Involvement: BioEnterprise; advisory contributions to growing U.S. exports. Red Cross of bed Ahuja Medical council, Sustain- The award is the highest U.S. government Greater Cleveland; Center in Beachwood. His family’s $30 PHILIP ALEXANDER able Cleveland honor for increasing exports. By 2009, co-chair, eastern 2019; OneCom- market region, the million gift in 2006 is one of the largest CEO 30% of the blender maker’s business munity; Wright 2010 United Way in the hospital system’s history. BrandMuscle Inc. was in exports, and international sales Center for campaign, Greater Beachwood had increased sixfold since 2005. Sensor Systems Cleveland; 2011 VIRGINIA ALBANESE Age: 52 Engineering; 2011 class, Leadership Type of organization: Media/marketing President, CEO class, Leadership RONALD M. Cleveland Involvement: Visiting committee, Case FedEx Custom Critical Cleveland In the news: A Western Reserve BERKMAN Green In the news: lawyer, she’s a veteran in energy University Weather- Age: 47 Hired last July to lead the technology President regulation, including nine years spent in head School of Type of organization: Shipping advocacy group, Ms. Bagley in May set Cleveland State Washington, D.C., practicing before the Management; services a new course for the organization, one University Federal Energy Regulatory Commission. advisory board, Involvement: that’s more focused on technologies Cleveland master’s in engi- Chair, Greater related to electric vehicles, storing Age: 63 neering and ROBERT W. Akron Chamber of electricity, controlling its distribution Type of organi- management Commerce; board and turning waste into energy. zation: Education BRIGGS member, The program, offered Involvement: Board member, Bio- Boys and Girls jointly by CWRU’s DAVID BEACH Enterprise, Greater Cleveland Partner- President Club of The engineering and management schools; ship, NorTech, Rock and Roll Hall of GAR Foundation Western Reserve, board member, Northeast Ohio Director Fame and Museum and United Way Akron Akron Children’s Software Association GreenCityBlueLake Institute of In the news: “We’re not going to build Age: 69 Hospital and Akron Community Founda- In the news: “Over the last several The Cleveland Museum of Natural for building’s sake, but there’s more continued on PAGE W-2 20101115-NEWS--14-NAT-CCI-CL_-- 11/10/2010 2:27 PM Page 1

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Type of organization: Nonprofit get tough on China for unfair trade In the news: Mr. Calabrese fought to Alliance; Workforce Institute of Lorain ship, the Rock Involvement: Chair, John S. and practices. “A significant amount of job avoid RTA fare increases as the County; Team Lorain County and Roll Hall of James L. Knight Foundation; board losses are caused by unfair trade, and system’s revenue declined. “Our priority In the news: “Utilizing the technologies Fame and Museum member, FirstMerit Corp., Fund for Our government is just catching up,” Sen. is to maintain both jobs and transit available has been vital to accommo- and University Economic Future, Invent Now Inc. Brown told Crain’s. “The public has service,” Mr. Calabrese said in March dating the demand,” said Dr. Church Hospitals Health In the news: Last year, the GAR known that China’s been gaming the during negotiations. “We seriously this summer referring to student System Foundation — an Akron-based nonprofit system for years.” question what the union’s priorities enrollment. LCCC had plans to add In the news: that supports institutions around are.” (The contract remains unresolved.) this fall eight modular classrooms, Aside from Summit County — awarded more than MARC S. BYRNES which can hold up to 30 students announcing $4.5 million in grants to nearly 100 each. At the time, Dr. Church said earnings and other corporate develop- Chairman, CEO JOSEPH A. CARRABBA nonprofits in the region. The group’s LCCC is built for about 6,600 students, ments, Mr. Connor is most visible Oswald Companies priorities include education, health and Chairman, president, CEO about half the number enrolled. and often seems most comfortable Cleveland social services, arts and arts education, Cliffs Natural Resources Inc. unveiling the company’s new tech- Age: 56 civic enhancement and nonprofit Cleveland nologies, such as this year when it Type of organization: Insurance PAUL CLARK enhancement. Age: 58 unveiled its first “graffiti-proof” coating. Involvement: Type of organization: Mining, natural Regional president, Northern Ohio Chair, Cleveland resources PNC Group Inc. DON BROWN Leadership WILLIAM CONSIDINE Involvement: Board member, Cleveland Center; director, CEO Newmont Mining Age: 57 President, CEO donor chair, exec- Arteriocyte Inc. Corp., Denver, Type of organization: Banking Akron Children’s Hospital utive committee Cleveland Colo.; University Involvement: Board member, Akron member, United Age: 47 Hospitals; and Baldwin-Wallace Age: 63 Way of Greater Type of organization: Technology KeyCorp College, Great Type of organization: Health care Cleveland; execu- Involvement: Ohio Venture Association; In the news: Lakes Science Involvement: Austen BioInnovation tive committee of BioOhio Cliffs has grown Center, Playhouse- Institute in Akron; the board, 50 In the news: The rapidly in recent Square Founda- Ohio Children’s Club; Bellefaire JCB company, which years, increasing tion, University Hospital Associa- In the news: “Like Batman and Robin, employs more revenues from Circle Inc. and tion; National they’re a great duo,” Mr. Byrnes said than 70 people, $1.2 billion in 2004 — when it still University Hospi- Association of in September as he discussed with about half of was known as Cleveland-Cliffs Inc. — tals Health Children’s Hospi- Crain’s his naming two presidents of whom are in to what is expected to be more than System tals and Related the company instead of one. The Cleveland, in $4 billion this year. Closing $1 In the news: In September, Mr. Clark Institutions; Akron presidents are to lead Oswald’s 230- October held an billion in acquisitions this year also offered insight into PNC’s commitment Tomorrow; Team plus employee-owners in efforts to open house kept the Cliffs name in headlines. in 2003 to a 10-year, $100 million NEO showing off its new 10,000-square-foot increase revenues and improve effort to improve early childhood In the news: Mr. Considine is leading headquarters in the Baker Electric operational efficiencies, he said. education. “In our industry, we’re only the charge at the hospital to forge Building. ROY A. as good as the communities we partnerships and expand the hospital’s JOSEPH serve,” he said. “We have to do things footprint throughout Northeast Ohio. CHURCH The hospital is in the midst of a SHERROD CALABRESE for the future.” BROWN President strategic planning process to boost its CEO, general Lorain County CHRIS COBURN revenue and patient roster, as well as to further integrate its 80 locations. Senator, manager Community Executive director Democrat Greater Cleve- College Innovations U.S. Senate land Regional Elyria Cleveland PATRICK AND Avon Transit Authority Age: 64 Age: 53 DANIEL CONWAY Age: 58 Cleveland Type of organization: Education Type of organization: Technology Type of organi- Age: 58 Involvement: Co-chair, Ohio Board Involvement: Vice chair, Cuyahoga Co-owners zation: Government Type of organization: Transportation of Regents’ Articulation and Transfer Arts and Culture; Great Lakes Brewing Co. Involvement: Faith & Politics Institute, Involvement: American Public Council; vice chair, Northeast Ohio board member, Ohio City Boy Scouts of America Transportation Association; United Council on Higher Education; funders’ The City Club of Age: Patrick, 62; Daniel, 49 In the news: The Democratic Way; The Old Stone Education Center; steering committee, Fund for Our Cleveland, Third Type of organization: Food and senator has been leading an effort to Downtown Cleveland Alliance Economic Future; co-chair, Innovation Frontier Advisory beverage Board, BioEnter- Involvement: Variety of environmental prise Corp. and and social Intelect Medical organizations Inc. throughout In the news: Northeast Ohio Cleveland Clinic Innovations to date In the news: has helped the Clinic turn 33 ideas into “We’ve been spinoff companies and others produce careful and licensing revenue. patient. We don’t want to compro- JOHN COLM mise our quality. I’d say that’s a President good strategy Wire-Net after two decades,” Hunting Valley $3,295,000 Waite Hill $1,895,000 Cleveland said Patrick Absolutely the most exquisite property imaginable. Extraordinary stone and Magnificent estate sited on 12 glorious acres abutting 20 acres of land conser- Age: 57 cedar county manor home with exceptional quality and attention to detail. vancy. Gracious southern inspired colonial manor lovingly updated and Conway (top Type of organization: Economic Beautiful decor, 1st floor master suite with sitting room. Outstanding finished with extraordinary materials and attention to detail. Grand entrance photo), regarding development kitchen, magnificent moldings and layout. Covered porch with stone foyer, spectacular walnut floors, extraordinary dream kitchen with octagonal the brewery’s fireplace, walk-out lower level to in-ground pool. glass walled morning room. Spectacular Family room with walnut built-ins. Involvement: Board of directors, careful expansion Cleveland Citywide strategy over the Development last 22 years. The Corp. brewery is undergoing a $6 million In the news: This equipment expansion. summer, Mr. Colm spoke about the type of DR. DELOS “TOBY” manufacturing businesses that COSGROVE were adding jobs President, CEO Hunting Valley $1,995,000 Pepper Pike $1,185,000 at the time: “Metal fabricating, forging, Cleveland Clinic The Best Value in Hunting Valley. Magnificent Stone & Stucco Tuscan Spectacular 4 year old transitional stone and cedar country house sited on a some consumer goods companies, Cleveland Manor Set in A Storybook Setting with Magnificent Valley Views, Fabulous magnificent wooded lot with glorious views. Featured in J Style magazine manufacturing reps, steel processing Interior & Finishes, Gorgeous Kitchen, Private Master Retreat with Porch this one of a kind home will take your breath away! Elegantly decorated and Age: 70 Library & His & Her Dressing Rooms, Extraordinary Quality & Attention to finished with the finest materials, this luxurious home has a 1st floor master — this is really broad based and it’s Type of organization: Health care Detail, Walk-out Lower Level w/Cabana Bath for Pool, Tennis Court. suite with gorgeous glamour bath, state of the art gourmet kitchen. everything from people bringing back Involvement: The Greater Cleveland a few folks to a dozen or dozens in Partnership; Ohio When buying or selling your home. some cases.” Business Round- Check out table; Presidents Just ASK CHRIS CONNOR Council; Center all of Adam’s for Health Affairs; Adam S. Kaufman CEO, chairman listings at Sherwin-Williams Co. Cuyahoga Com- 216.831.7370 Cleveland munity College www.justaskadam.com Age: 55 In the news: The Company Top Producer Type of organization: Coatings, Cleveland Clinic is related products in the midst of a Pepper Pike Office: 28879 Chagrin Blvd., Woodmere, OH 44122 Involvement: Board member, Eaton $1.2 billion plan to expand its reach Corp., the Greater Cleveland Partner- continued on NEXT PAGE ➤ 20101115-NEWS--15-NAT-CCI-CL_-- 11/10/2010 2:26 PM Page 1

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and to some has become a symbol of this transaction are expected to exceed stop playing defense,” said Mr. Cutler in its first two startups in April. Plain Dealer reported in late October. “I all things right about health care — a $50 million per year and be immediately regards to the region. Mr. Cutler was have long held the opinion that this is feeling exemplified when President accretive to Park-Ohio’s earnings.” one of 30 “difference-makers” profiled STEVEN M. DETTELBACH something we ought to be doing,” he came to town last year as part of Crain’s 30th anniversary. U.S. Attorney for the Northern was quoted as saying. to highlight the system during his push ALEXANDER District of Ohio for health care reform. A. RAY U.S. Justice Department FRANK L. “SANDY” DALTON Cleveland DOUGLAS JIM COSSLER CUTLER Age: 44 President, CEO Type of organization: Government CEO, chief evangelist President, CEO CEO, chairman PartsSource Inc. Involvement: (Mr. Dettelbach had to Youngstown Business Incubator Austen BioInno- Eaton Corp. Aurora resign from all Youngstown vation Institute in Cleveland Age: 54 boards as part of Age: 55 Akron Age: 59 Type of organi- his job so as to Type of organization: Economic Akron Type of organi- zation: Medical prevent conflicts development Age: 67 zation: Manufacturing parts supplier of interest, Involvement: Advisory council, Type of organization: Technology Involvement: Board member, DuPont, Involvement: Chairman, Medical according to a Youngstown State (collaboration) KeyCorp, the Greater Cleveland Part- Growth Fund and the Dalton Family spokesman.) University S.T.E.M. Involvement: Board member, Multiple nership, United Way Services of Greater Foundation; board member, Northern In the news: College; advisory Myeloma Research Foundation and Cleveland, the Electrical Manufacturers Ohio Red Cross and Team NEO; Mr. Dettelbach council, Hiram Ewing Marion Kauffman Foundation Club and the Musical Arts Association. member, Hudson Community Chapel recently announced College Center for In the news: The state of Ohio in July In the news: “Our region needs a real- In the news: In addition to leading one he wants local companies to pledge to Integrated Entre- named the institute its “Hub of Innova- istic plan for winning, and needs to have of Northeast Ohio’s fastest growing fight corruption and stand up to preneurship; tion and Opportunity” that will focus on the guts and fortitude to stick to the plan companies, Mr. Dalton helped form the dishonest public officials who seek advisory board, biomaterials commercialization. — we need to get back on offense and Medical Growth Fund, which invested in bribes in the course of business, The continued on PAGE W-4 The University of Akron School of Computer Science; board of visitors, Slippery Rock University Department of Computer Science; advisory board, Western Reserve Public Media In the news: “We want our best and brightest to leave Youngstown. ... We want them to go to Seattle or or wherever, and then come back and share everything they learned,” Mr. Cossler was quoted as saying in a May 2010 Inc. magazine article titled “Semper Youngstown: Youngstown, Ohio, of all places, is attempting to reinvent itself as a technology center.” MARK E. COTICCHIA Vice president for economic development, Research and Technology Management Case Western Reserve University Cleveland Age: 53 Type of organization: Technology Involvement: Board member, Bio- Enterprise and JumpStart; advisory board member, NorTech; former senior economic development adviser, University System of Ohio; international expert, United Nations World Intellectual Property Organization In the news: A university news release in April announced that Case Western Reserve University had continued its leadership role among Ohio hospitals, universities and research institutes by collecting $35.3 million in licensing revenues over a recent three-year period. Mr. Coticchia said the success was predicated largely upon university leadership realizing the needs and opportunities tied to sound commercial- ization of cutting-edge research. ED CRAWFORD CEO, chairman Park-Ohio Holdings Corp. Mayfield Heights Age: 70 Type of organization: Manufacturing Involvement: Involved in efforts to restore the Irish Cultural Garden in Cleveland’s , including bringing in a 13,000-pound granite fountain that replicates the one at St. Patrick’s Cathedral in Ireland In the news: “We are pleased to add to our Supply Technologies business an outstanding leadership team and a new list of customers representing some of the elite manufacturers in North America,” Mr. Crawford said in a state- ment this fall when a Park-Ohio Holdings Corp. subsidiary acquired Assembly Component Systems, a unit of Lawson Products Inc. “Annual revenues from 20101115-NEWS--16-NAT-CCI-CL_-- 11/11/2010 11:13 AM Page 1

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RICHARD W. DURST ship Award from the Greater Cleveland Technology bar-crowd rowdiness in the Warehouse the press as a proponent of business Partnership. The award recognizes In the news: The modest economic District because he does not want to sustainability. This year he also was President those who foster successful public- revival of 2010 brought life back to the see it go into a Flats-like downspin. in the news when he helped sell a Baldwin-Wallace College private initiatives in the region. It’s named Cleveland plant. When no steel was Best known the last few years for controlling interest in Fairmount to Berea after Mr. Shatten, a much-admired being made in summer 2009, the plant out-of-town projects, he is currently New York-based private-equity Age: 65 figure who has been given credit for had fewer than 270 people. By summer pursuing multiple projects in the city of investors for an undisclosed sum. Type of organization: Education catalyzing the rebuilding efforts of 2010, employment at the plant was Cleveland. Involvement: Board member, Play- Cleveland in the 1980s and 1990s. back around 1,100. DAVID FRANKLIN houseSquare and ERIC D. FINGERHUT The Presidents UMBERTO P. FEDELI JOSE FELICIANO Executive director Chancellor Council; past President, CEO Chairman president, Interna- Ohio Board of Regents Cleveland The Fedeli Group Hispanic Roundtable of Cleveland Columbus Age: 49 tional Organization Independence Cleveland of Designers, Age: 51 Type of organization: Cultural institu- Age: 50 Age: 60 Type of organization: Education tion Theatre Architects Type of organization: Insurance Type of organization: Nonprofit and Technology; Involvement: President, board of Involvement: N/A Involvement: Director, chairman of Involvement: Greater Cleveland Part- directors, Congre- In the news: Mr. past executive government nership; a White director, Interna- gation Agudas Franklin took over relations, member House fellow; past Achim, Columbus; the job Sept. 20 tional Council of Fine Arts Deans; past of the executive president, Cleveland president, United State Institute for board member, after serving as committee, Bar Association; Gross Schechter deputy director of Theatre Technology Cleveland Clinic founder and In the news: Baldwin-Wallace was a Day School the National Foundation; chairman, Hispanic In the news: Mr. Gallery of Canada. winner in this year’s Crain’s Emerald trustee, Catholic Roundtable Awards program, which honors Fingerhut has His big task: Diocese of Cleve- In the news: Mr. touted efficiency complete a $350 companies and organizations for their land Foundation; Feliciano, also a sustainability efforts. “Baldwin-Wallace as part of his million renovation director, Park View partner at Baker strategic plan for higher education in and expansion project designed to College’s focus on sustainability is not Federal Savings & Hostetler, in February was appointed directed to any particular product, Ohio. “We’re never going to be done improve the installation and interpreta- Bank to the executive committee of the … It’s just like every private business tion of the museum’s collection and to process or service, but seeks to be as In the news: “I’m happy to be a happy, Transition Advisory Group, a part of the comprehensive and institutional as that needs to continuously become enhance the experience of its visitors. passive investor, but I also have never Issue 6 effort to reform Cuyahoga more productive to increase profits possible,” according to its nomination had a problem with doing the right County government. for the award. and sales,” he said this fall about the JEFFREY FRIEDMAN thing for the right reason,” Mr. Fedeli state’s 14 public colleges and told Crain’s in August as he discussed JOHN FERCHILL Chairman, president, CEO ART J. FALCO universities consolidating some of his assertion that LNB Bancorp Inc., in Chairman, CEO their administrative services. Associated Estates Realty Corp. President, CEO which he’d acquired a more than 5% The Ferchill Group Richmond Heights PlayhouseSquare Foundation stake, should reduce its number of Cleveland ED FITZGERALD Age: 59 board members and take other action. Type of organization: Real estate Cleveland Age: 68 County executive-elect Age: 57 Type of organization: Real estate Involvement: Executive committee, TERRY FEDOR Cuyahoga County board member, Type of organization: Cultural institu- Involvement: Chairman, board of Cleveland tion/real estate Vice president, directors, Down- Greater Cleveland Age: 42 Sports Commis- Involvement: Board member, Positively general manager town Cleveland Type of organization: Government Cleveland, the ArcelorMittal Alliance; member, sion; member, Involvement: N/A National Associa- Downtown Cleve- Cleveland Downtown Cleve- In the news: On land Alliance, the Cleveland land Improvement tion of Real Estate Nov. 2, Mr. Investment Union Club and the Age: 46 Corp.; past chair- FitzGerald, a PlayhouseSquare Type of organi- man, Greater Trusts, National Democrat and Multi-Housing District Develop- zation: Manufac- Cleveland Sports Lakewood mayor, ment Corp. turing (steel) Commission and Council, Urban won the race for Land Institute, World Presidents’ In the news: Mr. Involvement: Ohio Steel Council Ohio Canal Corridor the new Cuya- Falco last March (governor-appointed member); board In the news: Mr. Ferchill said this Organization hoga County In the news: The real estate invest- received the member, Greater Cleveland Partnership spring he became chair of Downtown executive posi- Richard A. Shatten Professional Leader- and the Association for Iron & Steel Cleveland Alliance to do battle over ment trust acquired apartment tion. He and the complexes this year in Dallas, Texas, county’s new 11-member council will and Ashburn, Va., and it began be sworn in on Jan. 1. development of a 242-unit apartment community in a joint venture in MARK FLEINER Nashville, Tenn. CEO Rolls-Royce Fuel Cell Systems WILLIAM FRIEDMAN (U.S.) Inc. President North Canton Cleveland-Cuyahoga County Port Age: 44 Authority Type of organization: Technology Cleveland Innovating Involvement: Board member, Canton Age: 49 Regional Chamber Type of organization: Government to prepare tomorrow’s of Commerce Involvement: American Association of In the news: The Port Authorities, subsidiary of the American Great business leaders English jet engine Lakes Port Asso- maker in 2009 ciation received a $3 In the news: For more than 30 years, Baldwin-Wallace million grant to Since being help finance named in May as College’s practical MBA has provided northeast expansion of its president of the headquarters at Stark State College. public agency, Mr. Ohio businesses with dynamic leadership. That area has become a focal point Friedman has for Ohio’s fuel cell industry. Today, the College continues to expand its worked to expand the maritime CHARLES FOWLER operations of the . offerings to meet emerging challenges: President, CEO HIROYUKI Fairmount Minerals ■ MBA in Healthcare Management Chardon FUJITA Age: 65 Founder, Type of organization: Mining/natural president, CEO ■ Ohio’s first MBA in Sustainability resources Quality Electro- Involvement: Board of trustees, dynamics LLC; Case Western eQED, LLC ■ MBA in Management in a hybrid (online) Reserve University; Mayfield Village board member, Age: 44 format, beginning in Fall 2011 Geauga County Type of organization: Manufacturing YMCA, DDC Clinic (medical devices) Learn more at www.bw.edu/mba for Special Needs Involvement: Adjunct professor of Children and the physics and radiology, Case Western or call 440-826-2392. Alzheimer’s Asso- Reserve University; advisory board ciation member, Inamori International Center In the news: Mr. Fowler often appears in public and in continued on NEXT PAGE ➤ 20101115-NEWS--17-NAT-CCI-CL_-- 11/11/2010 11:13 AM Page 1

NOVEMBER 15-21, 2010 CRAIN’S CLEVELAND BUSINESS W-5

of Ethics and Excellence, CWRU; DR. JAY A. GERSHEN DAN GILBERT before the Miami Heat ever do. Type of organi- adjunct professor, School of Information zation: Manufac- Technology and Electrical Engineering, President Owner, , DAVID GILBERT turing The University of Queensland; Interna- Northeastern Ohio Universities Rock Ventures LLC President, CEO Involvement: tional Society for Magnetic Resonance Colleges of Medicine and Pharmacy Cleveland Greater Cleveland Sports Board member, in Medicine; Japan Society for Magnetic Rootstown Age: 48 Commission/Positively Cleveland Veyance Tech- Resonance in Medicine Age: 64 Type of organization: Sports Cleveland nologies, Purcell In the news: Dr. Fujita expects Quality Type of organization: Education Involvement: Cleveland Clinic; Group Age: 43 Tire & Rubber Electrodynamics to gain more than it Involvement: Board of directors, Plan Commission Type of organization: Co., Akron will lose from health reform. He told Research! America, (appointed by Tourism/event attraction Tomorrow, The Crain’s in March that he expects sales Sullivan Alliance Cleveland Mayor Involvement: Vice chair, International University of Akron Foundation, United of the coils it makes for magnetic to Transform Frank Jackson); Children’s Way Services resonance imaging machines to America’s Health Children’s Hospi- Games; Jewish In the news: “I continue to try to increase as more people get health Professions and tal Foundation, an Community Feder- reduce my dependency on automo- insurance, but he doesn’t believe the Austen BioInnova- affiliate of the ation; Park Syna- tive,” said Mr. Gingo this March. “Let product will be taxed because it goes tion Institute in Washington D.C.- gogue; Cleveland me be clear: I want to stay in automo- inside other machines. Akron; board of based Children’s State Athletics tive, but I want to reduce my depen- LYLE G. GANSKE trustees, National Medical In the news: Mr. dency on it.” A. Schulman Inc. at the NorTech and Center; Children’s Tumor Foundation; Gilbert will serve time had announced two acquisitions Greater Akron Chamber NBA Board of Governors in the previous four months. Partner-in-charge as the chief In the news: “The current name no In the news: Mr. Gilbert, in receiving Jones Day executive in the longer reflects who we are as a last month the Ruth Ratner Miller MARC GLASSMAN Cleveland “coordinated alliance” of the sports university. In addition to a College of Award for contributions to downtown Owner Age: 51 commission and Positively Cleveland, Medicine and a College of Pharmacy, Cleveland, announced he was bringing Marc’s Deep Discount Stores Type of organization: Law the region’s convention and visitors we also added a College of Graduate his Bizdom U — an entrepreneurial City: Cleveland Involvement: Board member, Altra bureau. Additionally, he will serve on a Studies last year. … We are a strong incubator already successful in Detroit Age: N/A Holdings Inc., leadership team for the 2014 Gay Games. institution with a health sciences — to Cleveland in 2011. Mr. Gilbert, Type of organization: Retail Rock and Roll Hall curriculum and we want a strong who also is behind the development of Involvement: N/A of Fame and JOSEPH GINGO name that reflects who we are and a casino in Cleveland, made national In the news: Notorious for being Museum and who we serve,” said Dr. Gershen this headlines this summer when, after Chairman, president, CEO media shy, Marc Glassman recently Greater Cleveland summer in announcing NEOUCOM’s LeBron James announced he was A. Schulman Inc. has taken to Twitter with posts like: Partnership (exec- intention to change its name to North- leaving Cleveland, he fired off a letter Fairlawn “Come to ‘Marc’s Feed the Children utive committee east Ohio Medical University. pledging to win a championship Age: 65 continued on PAGE W-6 and co-chair, Commission on Economic Inclu- sion); executive committee, Resilience Capital Partners; member, Ohio Business Roundtable In the news: A Crain’s report in June 2009 detailed how Jones Day’s profile was growing larger as its bankruptcy and restructuring work expanded to firms such as Lehman Bros. and Chrysler. “We’re very excited to be involved in this,” Mr. Ganske said at the time. “Bankruptcy gets a lot of attention.” STUART GARSON Attorney, party chairman Cuyahoga County Democratic Party Moreland Hills Age: 61 Type of organization: Political party Involvement: Ohio Academy of Trial Lawyers, Cleveland Jewish News, Moreland Hills Planning Commission In the news: Mr. Garson is working to rebuild the reputation of the county’s Democratic party, amid a government scandal that has rocked the region. FRED AND GREG GEIS Co-owners, Geis Cos. Members, Hemingway Develop- ment Inc. Big savings on a small Cleveland Age: Fred, 51; Greg, 42 Type of organization: Real estate Involvement: Fred Geis, MidTown business health plan. Cleveland Inc.; Cleveland Botanical Gardens; Erwin & Katherine Geis Foundation; member, U.S. and Greater Cleveland Green Building Coalitions. Greg Geis, member, NAIOP In the news: With partners, Fred and Greg Geis have Save Up To 10% On Your Health Insurance Premium In Just 10 Minutes.* been pursuing development of A quick quote from COSE is the easiest way to find the right plan at the right price. the MidTown Tech- Just ask the thousands of businesses who’ve already nology Park, an office/lab complex saved. So, let us help you find a quality health on Euclid Avenue, among other city insurance plan that could help you save big. projects. At a recent real estate trade meeting, Fred Geis said, “I’ve been spending more time with Mayor Jack- Visit cose.org/helpnow or call 216-245-1513 today to save. son than with my girlfriend.” The family- owned Geis Cos. has been the NAIOP * Does not apply to businesses currently enrolled in Medical Mutual of Ohio. 10% discount is not guaranteed. All cases subject to underwriting. trade group’s industrial developer of the year seven times, including in 2010. 20101115-NEWS--18-NAT-CCI-CL_-- 11/11/2010 11:14 AM Page 1

W-6 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

Campaign’ Monday, October 11 at MARCIE GOODMAN Energy Association; sponsorship PAUL G. GREIG Rock and Roll Hall of Fame and Museum 8:00 am until Thursday, November committee chairman, Bedford Heights In the news: Mr. Hall is part of a group 25” and “Want your groceries delivered Executive director Funtown Playground; United Way; devel- Chairman, president, CEO of county reform advocates pushing for right to your kitchen?? Go to www.marcs Cleveland International Film opment committee, Juvenile Diabetes FirstMerit Corp. diversity in county hiring and contracting .com & make a list, then send a friend Festival Research Foundation International Akron in the new county government. or family member to get them!” Cleveland In the news: Mr. Grabner and his Age: 54 Age: 55 company have been in the news quite Type of organization: Banking JAMES HAMBRICK ANNE GOODMAN Type of organization: Nonprofit/arts frequently over the last couple of years, Involvement: Board member, Greater Involvement: N/A most notably for Cardinal’s work in selling Cleveland Sports President, CEO President, CEO In the news: What into the wind power generation industry. Commission, Lubrizol Corp. Cleveland Foodbank recession? The President Barack Obama has used Musical Arts Asso- Wickliffe Cleveland 34th Cleveland Cardinal as a site for speeches because ciation and Akron Age: 55 Age: 44 International Film of its efforts in the wind industry. Tomorrow; Type of organization: Chemicals Type of organization: Nonprofit Festival in March co-chairman, Involvement: Board member, Hospice Involvement: Feeding America, the 2010 drew a ALBERT GREEN American Bankers of Western Nation’s Foodbank record 71,554 Council; member, Reserve, University Network; Ohio people, a 7% CEO board of governors, Hospital Health Association of increase from Kent Displays Inc. Firestone Country Systems, Greater Second Harvest 2009. It screened Kent Club Cleveland Partner- Food Banks; 153 feature films and 152 short Age: 45 In the news: Akron-based FirstMerit ship, Northeast Western Reserve subjects from 84 countries. Attendance Type of organization: Manufacturing has made a trio of bank acquisitions in Ohio Council on Academy; The at the event has doubled in the last (liquid crystal displays) the Chicago market over the last year, Higher Education Council of seven years. Involvement: Society of Information and Mr. Greig said the company will and the Cleveland Economic Displays; Kent continue to look for opportunities in the Museum of Natural Opportunities of JOHN Chamber of Windy City and throughout the Midwest. History Greater Cleveland; Cuyahoga County Commerce; board “There’s absolutely no reason to think In the news: In October, Mr. Hambrick FEMA Emergency Food and Shelter GRABNER member, Flex- that we’re done at this point in time,” he gave analysts a fairly bullish outlook on board President matters; adviser, said. both the economy and Lubrizol, setting In the news: At the urging of Cuyahoga Cardinal President Obama’s a public goal of increasing the company’s County officials, Ms. Goodman and Fasteners Export Council; JAMES GRIFFITH earnings by 80% between 2009 and leaders from the Hunger Network of Bedford Heights adjunct professor, 2013. Greater Cleveland this year began Age: 57 Kent State Univer- President, CEO working more closely in order to Type of sity Timken Co. HOWARD “HOBY” HANNA IV further stretch the funding the groups organization: Manufacturing In the news: Kent Displays in January Canton Age: 56 President receive from the county. Both have Involvement: Board member, released a liquid crystal-based electronic Howard Hanna Ohio seen increased demands for the membership chairman, the Industrial message pad, the first of many products Type of organization: Manufacturing Involvement: President, World Bearing Cleveland services they provide Northeast Ohio Fasteners Institute; board member, that the company aims to make using Age: 38 communities. finance committee, American Wind its roll-to-roll display manufacturing line. Association; vice president, Manage- Type of organization: Real estate ment Executives’ Involvement: Board member, Trulia Society; board advisory board, Northern Ohio Regional member, US-China Multiple Listings Service and North Business Council, Coast Community Homes; member, Goodrich Corp. Greater Cleveland Partnership and and the Manufac- Cleveland Clinic Children’s Hospital turing Advocacy In the news: On this year’s home-sale and Growth market, Mr. Hanna said: “You have par- Network ents telling their kids that maybe they In the news: This summer, Timken should move into that first house or announced it planned to invest about move up. People with kids in their 30s $50 million in its steel operations in are constantly saying, ‘When I was your Canton. At the time, Timken said its age, we had runaway interest rates.’” Steel Group has had a “significant increase in demand across all markets, HOLLY and 2010 sales are expected to increase by 70% to 80% compared to HARLAN 2009.” Founder, president Entrepreneurs BRIAN HALL for Sustainability CEO, president Cleveland Industrial Inventory Solutions LLC Age: 50 Cleveland Type of organization: Nonprofit Age: N/A Involvement: Stewardship council, Type of organization: Transportation Sustainable Cleveland 2019; Design Lab Involvement: Presidents Council; Advisory Board, Cuyahoga Community Commission on Economic Inclusion; continued on NEXT PAGE ➤ What’s she building? Her future. At Hawken, our early childhood classrooms are filled with exploration, adventure and a joyful sense of discovery. That’s because a lesson plan for academic, social and emotional growth includes an additional goal: to develop a love of learning – a foundation for school and for life. The beginning is everything. Get Ready. | HAWKEN.EDU

Please join us for our Early Childhood Parent Visitation Thursday, December 9, 2010 PS-PK-K | 8:45a.m.–10:30a.m. | Lyndhurst Campus RSVP today! [email protected]

COED PRESCHOOL – GRADE 12 Preschool to Grade 8 Grades 9–12 Lyndhurst Campus | 440.423.2950 Gates Mills Campus | 440.423.2955 20101115-NEWS--19-NAT-CCI-CL_-- 11/11/2010 11:15 AM Page 1

NOVEMBER 15-21, 2010 CRAIN’S CLEVELAND BUSINESS W-7

College; advisory committee, Green- Age: 58 Type of organi- CEO Cleveland CityBlueLake Institute; advisory board, Type of organi- zation: Real Hyland Soft- Age: 64 Generation Foundation zation: Supplier estate ware Inc. Type of In the news: Well-known for her various (aircraft parts) Involvement: Westlake organization: sustainability initiatives and efforts, Ms. Involvement: Board member, Age: 39 Government Harlan’s organization introduces Trustee, Case U-Store-It Trust Type of organi- Involvement: companies — now with more than Western Reserve Inc., Cleveland; zation: Tech- Mayors Against 5,000 in its network — to sustainable University; board International nology (software) Illegal Guns operations. She was named Crain’s of directors, Council of Shop- Involvement: Coalition “Green Lantern” award winner at the Polypore Inc. ping Centers trade group; Colgate Uni- Advisory board member, The Ohio In the news: In the midst of a plan to 2009 Emerald Awards. In the news: TransDigm has been an versity; Hawken School; and Neuro- Foundation of Independent Colleges; restructure city government, Mayor aggressive acquirer over the last logical Institute, Cleveland Clinic board member, United Way of Greater Jackson most recently has been KING HILL couple years. In September, it inked a In the news: Mr. Hurwitz took time Cleveland fighting to keep open the trauma definitive agreement to acquire out from DDR’s push to clean up its In the news: The region’s largest center at Huron Hospital. Founder McKechnie Aerospace Holdings Inc., a balance sheet and complete record software company by employment DigiKnow privately owned supplier of aerospace volumes of leases to fill empty space recently bought two companies, JOE KANFER Cleveland products, for $1.27 billion in cash. to tell a local ICSC meeting last spring putting its headcount above 1,000. “I Age: 52 CEO that the last few years were a great think it matters to the region to have a Gojo Industries Type of organization: Media/marketing DANIEL HURWITZ time to be a young person in the success story,” Mr. Hyland said. Involvement: Member, Kent State Akron CEO, president business. That’s Age: N/A University National because, “Half the rules are new.” FRANK JACKSON Alumni Board; past Developers Diversified Realty Corp. Type of organization: Manufacturing president, American Beachwood Mayor Involvement: N/A Advertising Feder- Age: 46 A.J. HYLAND City of Cleveland continued on PAGE W-8 ation/Cleveland In the news: “People who want to use mobile technology and mobile marketing will look for a company that specializes in it,” said Mr. Hill in an April 12 Crain’s A SECOND OPINION SAVED US story on DigiKnow’s development of a mobile web site and iPhone application for Nestle’s Carnation brand of cooking milks. * MICHAEL F. HILTON CEO Nordson Corp. Westlake Age: 56 Type of organization: Manufacturing (precision dispensing equipment) Involvement: Co-chair, SEMI ISS committee and member of the association’s North American TIMES ARE TOUGH, BUT WE’RE STILL GOING, and a Citizens Bank Second Opinion helped us get there. After Advisory Board; member, Manufac- examining every aspect of our business, a Citizens Banker found ways we could save more money, be more turers Alliance/ efficient – for our business and personal accounts. MAPI GM Council, American Institute of Chemical Make time to meet with a Citizens Banker. To schedule your Citizens Bank Second Opinion, CALL 800-946-2264 Engineers and National Investor Rela- or go online to CITIZENSBANKING.COM/OPINION. tions Institute In the news: Nordson this month closed its acquisition of St. Paul, Minn.- based Micromedics Inc., a deal that extends Nordson’s reach in precision dispensing technology and adds to its capabilities in the fast-growing medical device and life sciences markets. MIKE HOLMGREN President Cleveland Age: 62 Type of organization: Sports Involvement: Medical Teams Interna- tional, Salvation Army, Hunger Relief, breast cancer awareness In the news: Mr. Holmgren, who took two NFL teams (Green Bay, Seattle) to the Super Bowl as a head coach, was hired in December by Browns owner Randy Lerner and given full authority. Since the season started, he’s remained in the background in an effort not to undermine coach Eric Mangini, but his presence — from a crackdown on lewd behavior in tailgate lots and in the stadium to questions about his return to the sideline — looms large. W. NICHOLAS HOWLEY * Results may vary depending on your business situation. Chairman, CEO TransDigm Group Cleveland 20101115-NEWS--20-NAT-CCI-CL_-- 11/11/2010 11:15 AM Page 1

W-8 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

In the news: This fall, GoJo Industries (medical U.S. representa- Ohio offices into new space in down- has generated $267 million in economic said it reacquired the Purell hand devices) tive, Democrat, town Cleveland. activity and helped support 664 jobs sanitizer brand from Johnson & Involvement: 10th District here over the past four years. Mr. Johnson’s consumer products division. Letter Winners M U.S. House of STEVE LATOURETTE Leach and his team continued investing “This transaction enables GoJo to Club, University of Representatives throughout the year: They registered expand the Purell product line to Michigan; associate Cleveland U.S. representative, Republican, their highest fiscal-year total of invest- include effective hand hygiene solutions member, American Age: 64 14th District ments at 13. for every setting — at home, at work Society for Type of organi- U.S. House of Representatives and on the go,” Mr. Kanfer said. GoJo Gastrointestinal zation: Government Bainbridge LESTER A. LEFTON invented the Purell brand in 1988 and Endoscopy Involvement: International Alliance of Age: 56 President sold it in 2004. In the news: U.S. Endoscopy, a Theatrical Stage Employees Type of organization: Government Kent State University company that designs and manufac- In the news: U.S. Rep. Kucinich’s Involvement: U.S. Holocaust Memorial Kent tures products for clinicians in the field latest skirmishes include efforts to Council DOUGLAS KATZ Age: 64 of endoscopy, is continuing to pursue protect homeowners facing foreclosure In the news: U.S. Type of organization: Education Chef, owner expansion plans in Mentor and has and support of a discount for all-electric Rep. LaTourette Involvement: NorTech; Greater Akron Fire, Food & Drink narrowed options to a few facilities homeowners served by FirstEnergy. On asked President Chamber; Western Shaker Heights within close proximity to the company’s Nov. 2, he won re-election to his eighth Obama to inter- Reserve Public Age: 40 main campus. term in Congress. vene to keep Media; Musical Type of organization: Food and General Motors Arts Association of beverage dealerships, RICHARD J. KRAMER CHRIS KUENNE the Cleveland Involvement: President, Cleveland scheduled for Orchestra; Com- Independents; CEO Chairman, CEO closing, open until mission on Effec- board member, Goodyear Tire & Rubber Co. Rosetta an investigation is completed. On Nov. tive Leadership, Positively Cleve- Akron Princeton, N.J. 2, he won re-election to his ninth term American Council land; ambassador, Age: 47 Age: 48 in Congress. Monterey Bay Type of organization: Manufacturing Type of organization: Media/marketing on Education Aquarium Seafood Involvement: Board of directors, Involvement: Board member, The RAY LEACH In the news: “This is transformational, Watch, California Summa Foundation, Princeton Commu- a really extraordinary makeover of the city,” Mr. Lefton said in regard to a five- In the news: “At Akron Tomorrow, nity Foundation CEO year, $300 million plan announced in Fire, we will continue John Carroll Uni- and the Princeton JumpStart Inc. January to transform the city of Kent to serve our loyal versity, the Rubber Junior School Cleveland and the university into more attractive, Cleveland customers food that is Manufacturers In the news: Age: 44 user-friendly places. nationally recognized year after year Association and Acquisitions have Type of organi- (including a top dining destination named Walsh Jesuit High helped Rosetta zation: Nonprofit by Travel + Leisure and one of the School LLC grow to more (business develop- FRANK nation’s best brunches named by O, In the news: than 1,000 people ment) LINSALATA Oprah’s magazine),” Mr. Katz said this Mr. Kramer was from about 600 in July 2008, when it Involvement: American Red Cross, summer. elected chairman of the board effective bought Brulant Inc. of Beachwood. Northeast Ohio; Ohio Venture Associa- Chairman, Oct. 1, succeeding Robert J. Keegan, Rosetta has added about 50 people to tion; Northeast Ohio venture capital founder GULAM KHAN who stepped down as chairman and a its Northeast Ohio staff since buying task force; public policy committee, Linsalata Capital CEO, co-chairman director and retired from the Akron- Brulant, bringing the company’s local National Association of Seed and Partners U.S. Endoscopy based tiremaker after seven years at staff to about 400. The company is Venture Funds; founding chair, Regional Mayfield Heights Mentor the helm. positioned to expand its presence in Innovation Acceleration Network Age: 67 Age: 43 the region further now that it is consoli- In the news: A Cleveland State study Type of organization: Private equity Type of organization: Manufacturing DENNIS KUCINICH dating its three previous Northeast released in April found that JumpStart continued on PAGE W-10 FEM;H E< 7JJEHD;O5 O;I$

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W-10 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

Involvement: Trustee, past board center management KEVIN MCMULLEN Development Board Type of organi- chair, Case Western Reserve University; Involvement: American Society of In the news: Mr. McQueen took over as zation: Business emeritus trustee, Laurel School Association Executives; Irish American Chairman, CEO CEO after the retirement of the airport’s service, advocacy In the news: Speaking to how the pri- Charitable Fund; Stella Maris Mission; Omnova Solutions Inc. longtime leader, the late Fred Krum, in Involvement: vate equity business began in Cleveland visiting committee, Maxine Goodman Fairlawn time to oversee CAK 2018, a 10-year, National Small before the term “private equity” even Levin College of Urban Affairs, Cleve- Age: 50 $110 million capital improvement Business Associa- existed, Jim Marra, who works within land State University Type of organization: Specialty program. Also, late this year, South- tion; Presidents the field, remarked to Crain’s in In the news: MMPI Inc., the Chicago- chemicals west Airlines agreed to acquire AirTran Council Founda- January: “It started with Frank Linsalata, based developer behind the Medical Involvement: Board of directors, Holdings Inc., which operates about a tion; United Way of David Morgenthaler and those early Mart & Convention Center, said it has Steris Corp.; third of the daily departures from Greater Cleveland; Chamber of Com- private equity guys in the late ’70s and received its 40th signed letter of intent trustee, Akron Akron-Canton Airport. The full impact of merce Executives of Ohio; Community early ’80s.” Mr. Marra went on to call from a tenant for permanent showroom Tomorrow and the plan on Akron-Canton is unclear. Partnership for Arts and Culture them “pretty smart guys with a vision of space in the medical mart. MMPI said it Ideastream In the news: Mr. Millard and COSE what private equity could do.” also has 16 letters of intent for confer- In the news: In HENRY L. MEYER III have continued to be a sounding board ences, conventions and trade shows at and advisers for their members, as the September, Omnova Chairman, CEO RAMON LUGO III the complex. announced it had recession has hit small businesses KeyCorp hard. Most notably, the organization was Director entered into an Cleveland agreement to buy outspoken on the potential negative NASA Age: 60 effects of President Barack Obama’s Brook Park France’s Eliokem Type of organization: Banking chemical company for $310 million. health care reform bill, though eventual Age: 53 Involvement: Board member, United tax credits can help COSE’s members. Type of organization: Government “This acquisition will transform Omnova Continental Hold- Involvement: Board member, Greater Solutions into a much larger, more ings, University Cleveland Partner- diverse specialty chemical and functional Hospitals Health DONALD ship and NorTech surfaces company with significantly System, Greater In the news: “This enhanced global capability,” Mr. Cleveland Partner- MISHEFF congressional McMullen said. “It is an excellent fit with ship and Northern Omnova’s strategy to grow in existing Northeast direction is good ARI, JORI AND RICK MARON Ohio Council on Ohio managing news for Glenn markets, penetrate new adjacent Higher Education; Partners markets and globalize our company.” partner and Ohio,” Mr. member, Federal Ernst & Young Lugo said this fall MRN Ltd. Advisory Council Cleveland Cleveland regarding the RICHARD of the Federal Reserve System Age: 54 NASA budget Age: Ari, 32; Jori, 29; Rick, 62 In the news: In reporting last month Type of organization: Real estate Type of organization: Financial Congress passed in October. MCQUEEN KeyCorp’s second straight profitable services Involvement: Ari Maron, board quarter, Mr. Meyer praised company member, Downtown Cleveland Alliance CEO, president Involvement: Chairman, Tri-C Founda- employees who “have remained focused tion; board chairman, Firestone Country DENNIS and ParkWorks. Akron-Canton on serving our clients through what has In the news: Best known for its East Airport Club; chair, finance and audit committee, MADDEN been the most challenging economic PlayhouseSquare Foundation; chair, Fourth Street neighborhood in down- Plain Township period in decades.” Executive director town, MRN this year finished the Block Age: 51 finance committee, Team NEO; finance Cleveland Med- Building, a $5 million project that is its Type of organization: Transportation chair, Group Plan Commission ical Mart & Con- last large building rehab on East Fourth Involvement: Advisory board, Walsh STEVE MILLARD (appointed by Mayor Jackson) vention Center between Euclid and Prospect avenues. University; board of trustees, Greater President, executive director In the news: Last March, Mr. Misheff Cleveland New projects are taking MRN to Ohio Akron Chamber; Akron/Summit County Council of Smaller Enterprises was honored by the Greater Akron Age: 54 City’s Market Square and University Convention and Visitors Bureau; Canton Cleveland Chamber as the sixth recipient of the H. Type of organization: Convention Circle. Regional Chamber of Commerce; Stark Age: 42 continued on NEXT PAGE ➤

Committed to People, Planet and Prosperity

Fairmount Minerals is committed to exceeding customers’ expectations while fulfilling our economic, social and environmental responsibilities. We work to ensure that our actions positively impact all three pillars of our sustainability focus: People, Planet, Prosperity.

We practice sustainability in ways that include:

t Being a leader in education and communication t Investing our time, talents and treasure to enhance our communities, locally and globally t Promoting and supporting a healthy balance between community involvement, work and family

Fairmount Minerals, headquartered in Chardon, Ohio, is one of the world’s largest producers of industrial sand and coated sand products in North America.

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NOVEMBER 15-21, 2010 CRAIN’S CLEVELAND BUSINESS W-11

Peter Burg Economic Development James J. Maiwurm, chairman of Squire GE Lighting In the news: Concerned about the of the Cleveland Leadership Award, named in honor of Sanders, said in a statement after the Cleveland impact on small businesses of tighter Public Library; the late CEO of FirstEnergy Corp. NFL team named Mr. Nance general Age: 43 bank lending standards, the Cleveland Northeast Ohio counsel in December 2009. “We fully Type of organization: Manufacturing Fed under Ms. Pianalto’s direction this CEO Roundtable; A. MALACHI MIXON understand why the Browns want to Involvement: Board of governors, year conducted an outreach program founding member, draw on Fred’s experience and judg- treasurer, execu- to hear about the problem from small International Digital Chairman ment, for the firm has done the same tive committee, business owners and community Publishing Forum; Invacare Corp. thing over the years.” National Electrical bankers. member, American Elyria Manufacturing Library Association, Age: 70 Association; board DON PLUSQUELLIC Park Synagogue Type of organization: Manufacturing STEPHEN D. NEWLIN member, United In the news: OverDrive in October (home health care) Mayor Chairman, president, CEO Way of Greater received a “major investment” from a Involvement: Board member, Sherwin- City of Akron PolyOne Corp. Cleveland and the New York private equity firm that was Williams Co., Park- Akron Avon Lake Greater Cleveland impressed by the company’s past Ohio Holdings Age: 61 Age: 57 Partnership growth and wants to capitalize on its Corp. and Primus Type of organization: Government Type of organization: Specialized In the news: Mr. Petras has most focus on digital media, an increasingly Venture Partners Involvement: polymer materials, solutions, services recently been touting GE’s latest devel- hot market. In the news: Mr. Mayors for Peace Involvement: Board of directors, opments with regards to LED lighting, Mixon is recovering In the news: Great Lakes including announcing new products and from a stroke that Unsuccessfully LUIS M. Science Center; agreements with companies such as caused him to led an effort in Ohio Business Walmart, which have pledged to begin PROENZA temporarily step November to pass Roundtable; using the bulbs. aside as chairman a charter amend- President Triangle Fraternity and CEO of Invacare. He has returned ment that would University of Men of the Century to his role as chairman and is set to SANDRA allow the city of Akron In the news: “We decide by the end of this year as to Akron to divert Akron used to go after PIANALTO whether he will return as CEO. $13 million in income tax revenue from Age: 65 volume. But that’s President, CEO school construction to safety forces Type of organi- not our game Federal Reserve and snow removal. The amendment zation: Education DAN T. MOORE III anymore,” Mr. Newlin told Plastics Bank of Cleve- failed 55% to 45%. Involvement: Executive Committee, President News in late October, speaking about land manufacturing competitive steering Dan T. Moore Cos. the way the company had made tough Cleveland STEVE POTASH committee, Council on Competitiveness; Cleveland choices in 2009, closing an Ontario Age: 56 Council on Foreign Relations; Govern- Age: 70 plant, cutting nearly 400 jobs company- Type of organization: Banking President, CEO ment-University-Industry Research Type of organization: R&D, wide and refocusing on customer needs. Involvement: Vice chairman, Greater OverDrive Inc. Roundtable, National Academy of acquisition entity, business incubator Cleveland Partnership; board member, Valley View Science; program advisory board, Involvement: Board of directors, THE REV. ROBERT L. The Cleveland Foundation, Rock and Age: 58 National Institute of Standards and Hawk Corp., Roll Hall of Fame and Museum and Type of organization: Digital media Invacare Corp. and NIEHOFF University Hospitals Involvement: Board member, Friends continued on PAGE W-12 Park-Ohio Industries President Inc.; board of John Carroll University trustees, Cleve- University Heights land Clinic Founda- Age: 57 tion and Cleveland Type of organization: Education State University Involvement: Board of directors, In the news: Mr. Georgetown University; board of Moore was on a trustees, Saint cross-country motorcycle trip in Febru- Louis University ary when he was in Santiago, Chile, and Regis during a magnitude 8.8 earthquake, one University; execu- of the largest quakes ever recorded. tive committee, Association of MARK MORAN Jesuit Colleges CEO and Universities; MetroHealth Medical Center National Leader- Cleveland ship Roundtable Age: 55 on Church Management Type of organization: Health care In the news: “The fundraising Involvement: United Way of Greater numbers for us were up for the Cleveland second year in a row,” the Rev. In the news: Mr. Niehoff said this summer. “It’s been Moran has helped both in dollars and participation rates. guide MetroHealth Every fundraising category is up.” from the pits of a bribery scandal DR. STEVEN NISSEN and helped turn Cardiologist around the county- Cleveland Clinic subsidized health Cleveland system’s finances. Age: 62 Through measured approaches, Mr. Type of organization: Health care Moran eliminated the red ink from the Involvement: Academic council, Cleve- hospital’s books. Just last week, three land Clinic Founda- bond-rating agencies have issued or tion; Associations maintained positive ratings for the of Professors of MetroHealth System. Cardiology; Asso- ciation of American FREDERICK R. NANCE Physicians; presi- Regional managing partner, dent, chairman, Squire, Sanders & Dempsey LLP American College General counsel, Cleveland Browns of Cardiology; Cleveland member, Cardio- Age: 57 vascular Renal Drugs Advisory Type of organization: Law Committee, U.S. Food & Drug Involvement: Trustee, Cleveland Clinic; Administration director, RPM In the news: Dr. Nissen, a renowned International Inc.; cardiologist, essentially blew the lid on trustee, Cleveland the controversial diabetes drug Avandia Foundation; and suggested in a study that the drug trustee, executive raised the risk of heart attacks. The committee mem- U.S. Food and Drug Administration ber, Greater Cleve- considered banning the drug, but it land Partnership; since has been restricted for use in president, 50 Club patients unable to control their blood of Cleveland sugar with other medications. In the news: “If we have to share Fred, we are glad it is with a family and orga- MICHAEL PETRAS nization as important to the Cleveland area as the Lerners and the Browns,” President, CEO 20101115-NEWS--24-NAT-CCI-CL_-- 11/10/2010 2:58 PM Page 1

W-12 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

Technology; Akron Tomorrow Museum of Natural History, LogicBay cash dividend of $1 per common In the news: “We’ve been able to Corp., Nacco Materials Handling Group, share, Mr. Renwick said in a statement Salt for Ice Control recruit exceptional individuals who Neuros Medical Inc. and OnShift Inc. in late October: “The combination of might not have come in a better In the news: A Crain’s story in early strong operating and investment Bag and Bulk market,” Dr. Proenza said this spring in March found the angel fund Mr. Rankin results has increased our capital to a noting that the recession benefited the helps oversee had been steadily busy, level that allows us to pay the dividend • Halite Big Savings on University of Akron, which hired 110 with investments in nine companies at this time.” Truckload Orders! new and replacement faculty members over the previous nine months. • JiffyMelt since August 2008. RONN RICHARD Minimum Delivery = 1 Pallet • Calcium CHARLES RATNER The Cleveland Foundation Chloride Forklift Delivery Available DAVID PUGH President, CEO CEO Chairman, CEO Cleveland John S. Grimm, Inc. 1-800-547-1538 Forest City Enterprises Inc. Age: 54 Applied Industrial Technologies Cleveland Authorized Dealer Cleveland Type of organization: Nonprofit Age: 69 Involvement: Age: 62 Type of organization: Real estate Type of organization: Distributor, Board member, Involvement: Member, past board Council on Founda- industrial products and services chairman, Cleveland Foundation, Involvement: Board member, Hexcel tions, Finca Vigía The Sky Quest Travel Experience: Greater Cleveland (dedicated to pre- • A flight that departs on your schedule Corp. and R.W. Partnership, Beckett Corp.; serving Ernest LLC • No lines, no waiting, no carrier delays Jewish Community Hemingway’s home AIR CHARTER SERVICE • An aircraft and crew you know and trust visiting committee, Federation of AIRCRAFT MANAGEMENT in Cuba), • Personalized concierge service to handle all your trip details Fenn College of Cleveland and Engineering, Living Cities and SAFETY • SERVICE • CONVENIENCE United Way; Cleveland State Ohio Grantmakers board member, Forum; National Leadership Council, In the news: American Applied Industrial Rainbow Babies & Children’s Hospital Greetings Corp. In the news: Mr. Richard was named Technologies in In the news: The October reported to the list of the 50 most influential past two years, Mr. Ratner focused his nonprofit leaders in the United States Cleveland’s Premier Air Charter Company a big increase in its fiscal first-quarter organization on trimming debt and earnings and has raised its earnings by Nonprofit Times. The publication 216-362-9904 • [email protected] • WWW.FLYSKYQUEST.COM expenses in the recession and realty said that Mr. Richard’s “experience in guidance for all of fiscal 2011. “Our credit crunch. His goal in a phrase: be sales showed steady growth over biotech and international relations is a survivor. Forest City has started pulling together government, nonprofit prior-year comparables throughout the construction of the arena at its massive quarter on the basis of increased and for-profit leaders. As the state’s Atlantic Yards development in Brooklyn, volunteer ‘infrastructure czar,’ and with demand from the majority of our N.Y., and leased a site to Cleveland industrial segments,” Mr. Pugh said. the foundation’s cash, he has regional casino operators near Tower City and national clout.” “We see this level of demand continuing Center. for the foreseeable future.” GLENN M. JOSEPH CLAIBORNE ROMAN R. “CLAY” RENWICK President, CEO President, CEO RANKIN The Progressive Greater Cleve- land Partnership AIR CHARTER SERVICE Managing Corp. AIRCRAFT MANAGEMENT member Mayfield Village Cleveland North Coast Age: 55 Age: 54 Angel Fund Type of organi- Type of organi- Mayfield Heights zation: Insurance zation: Nonprofit Age: 60 Involvement: N/A Involvement: Cleveland Metropolitan Type of organization: Early stage In the news: Speaking about the return Bar Association; Ohio Business Devel- angel investment fund of about $660 million to company opment Coalition; Partners for Livable Congratulations Involvement: Board member, Cleveland shareholders through an extraordinary continued on PAGE W-14 to Howard Hanna, IV on being named to Crain’s Cleveland Business “Who’s Who in Northeast Ohio Business”!

We applaud you, Hoby Hanna, for this accomplishment and salute you for your commitment to excellence and outstanding service Inspiring minds, transforming lives, to our community. AND a great value Your spirit, drive and dedication sEmployers hire our students: Within 6 months of graduation, 97% of has made our company what it is today! our students are either working full-time, in graduate school, or fulfilling a commitment to a year of service. Thank you and heartfelt congratulations, sLeaders come from John Carroll: 500 Ohio companies are owned or Your Howard Hanna Real Estate Family operated by our alumni. sRecognized value: Student success and generous financial aid earn JCU a top regional spot in the U.S. News and World Report “Best Colleges, Best Values” comparison. The John Carroll experience is more than the quickest path to a degree or getting that first job. We inspire and prepare our students to engage the world as creative, innovative, and ethical leaders in the workplace and throughout their lives. www.howardhanna.com www.jcu.edu/success 20101115-NEWS--25-NAT-CCI-CL_-- 11/10/2010 2:25 PM Page 1

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W-14 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

Communities; Positively Cleveland; Cleveland development of the East Side neighbor- In the news: The JOSEPH M. SCAMINACE Rock and Roll Hall of Fame and Museum Age: 42 hood of cultural, educational and health company this In the news: Mr. Roman and the Type of organi- care institutions. Most recently, it was spring announced CEO Greater Cleveland Partnership worked zation: Nonprofit announced that a Courtyard at Marriott plans to move 240 OM Group to reassure the community that air Involvement: hotel would be built in the area. positions to Mentor Solon service to the city would not be curtailed Holden Parks from Erie, Pa. The Age: 55 when it was suggested that Continental Trust; CEOs for WALTER ROSEBROUGH move is part of the Type of organization: Specialty Airlines might severely cut its service in Cities; American CEO sterilization prod- chemicals, materials the Cleveland market. Planning Associa- Steris Corp. ucts company’s Involvement: Cleveland Clinic tion; Positively Cleveland; Friends of Mentor ongoing effort to increase efficiencies Foundation, CHRISTOPHER RONAYNE Cleveland School of the Arts Age: 56 across its global operations. Parker-Hannifin President In the news: Inc. is a Type of organization: Manufacturing Corp., Boler Co. University Circle Inc. nonprofit charged with promoting the Involvement: Joerns Healthcare SCOT M. ROURKE In the news: In February, OM Founding president, CEO Group moved to OneCommunity acquire the Cleveland advanced battery Age: 41 subsidiary of Type of organization: Nonprofit (infor- EaglePicher Corp. mation technology) for $172 million. “The proposed Involvement: Board trustee, Great acquisition of EaglePicher is a logical Lakes Science extension of our portable power plat- Center; immediate form and is another excellent example past board presi- of the type of acquisition we seek to dent, Friends of transform our business model,” Mr. Cleveland School Scaminace said at the time. of Arts; board director, Vox ROBERT N. SCHMIDT Mobile; advisory board, PreEmptive Chairman, CEO Solutions; children’s Cleveland Medical Devices Inc.; indoor and outdoor soccer coach Orbital Research Inc.; NeuroWave Systems Inc.; and Flocel Inc. In the news: OneCommunity announced Cleveland area in March that it received $18.7 million Age: 62 in stimulus money to provide Internet Type of organization: Orbital develops training to low-income people in Akron, control systems, electronic devices SBA lending options Cleveland and other areas. It planned to and medical devices; the other teach participants how to use the companies all develop medical devices Internet in productive ways, such as Involvement: Board member, National applying for jobs, and how to afford Small Business for small businesses Internet access over the long term. Association, Small Business Tech- EUGENE T.W. SANDERS nology Council; advisory board just got better. CEO member, biomed- Cleveland Metropolitan School ical engineering District departments at Cleveland the University of Age: 53 Southern California Type of organization: Education and Washington University in St. Louis; Involvement: Member of several associate fellow, American Institute of boards including Aeronautics and Astronautics the Cleveland In the news: On a medical device tax Museum of Art, in the health care bill President Obama All across Cleveland, small business lending Rock and Roll Hall signed in March: “Taxing those growing of Fame, United companies is like taking away food from is a #1 priority for us. Way and the Great a teenager. From a growing child.” Lakes Science Center BAIJU SHAH Increased loan limits In the news: “This As America’s premier SBA lender, U.S. Bank is pleased to announce our full commitment to recently is the most President comprehensive reform initiative placed BioEnterprise Corp. enacted Federal legislation affecting small businesses. As a result of this legislation, the SBA 7(a) loan before the business leaders in a gener- Cleveland program has permanently increased from $2 million to $5 million; and the 504 program loan limits have ation,” Dr. Sanders recently said. The Age: 39 been increased to accommodate transactions up to $12.5 million. As a result, small businesses now CEO of the Cleveland Metropolitan Type of organization: Health care School District is hoping to raise as business accelerator have more opportunities for expansion, acquisition and refinance. much as $12 million from the business Involvement: Cleveland International community to help finance his five-year, Fund, TiE-Ohio Limited time loan fee waiver $72 million transformation plan to re- (The International make the struggling school district. Entrepreneurs), This new legislation allows for the waiver of SBA fees on both 7(a) and 504 loans until December 31, Global Cleveland, 2010*. This temporary SBA fee waiver could save small businesses as much as $166,250 on new JONATHON SAWYER Summer on the SBA loans – this is a limited time opportunity, so time is of the essence! Cuyahoga, Great Chef, owner Lakes Science The Greenhouse Tavern Center We invite you to discover what more than 30,000 small businesses already know – that U.S. Bank is Cleveland In the news: very much in the SBA business and ready to lend. Contact a U.S. Bank SBA Division loan expert today Age: 30 BioEnterprise Type of organization: Food and for a no-obligation consultation. reported that Northeast Ohio health beverage care companies raised $77.6 million in Involvement: Slow Foods; Downtown venture capital through the first three Cleveland Alliance; quarters of the year, which is up from Culinary Vegetable 2009, but down from 2008. “The Institute; duck momentum is once again with us,” Mr. advisory board, Shah said. Romona Davis Maple Leaf Farms; 440-717-1226 Green Building MARK Coalition SHAPIRO In the news: “I currently have nine President kinds (of vinegar) Cleveland that are fermenting, from straight red Indians wine to one with late-harvest Riesling. Cleveland On top of that, there are five kinds that Age: 43 we’re finishing in new-American-oak Type of organi- usbank.com barrels,” said Mr. Sawyer in a profile on zation: Sports Member FDIC. ©2010, U.S. Bancorp, U.S. Bank National Association. *The U.S. Small Business Administration (SBA) estimates that it will be able to eliminate upfront Guaranty Food & Wine magazine’s web site. The Involvement: Center for Families and fees on loans approved through 12/31/2010 or until funding expires. Financing maximums and terms are determined by borrower qualification and use of funds. magazine named him one of this year’s Children best new chefs. continued on NEXT PAGE ➤ 20101115-NEWS--27-NAT-CCI-CL_-- 11/10/2010 2:37 PM Page 1

NOVEMBER 15-21, 2010 CRAIN’S CLEVELAND BUSINESS W-15

In the news: Promoted after the Cleveland Clinic . Her priorities closely align with mittee, Greater Cleveland Partnership; Spitzer Manage- season to team president, Mr. Shapiro Cleveland the paper’s mission of continuing chairman, investment committee, Ohio ment Inc. was the youngest man named to Major Age: 60 watchdog reporting and emphasizing Bureau of Workers’ Compensation Elyria League Baseball Commissioner Bud Type of organi- local coverage,” said Plain Dealer In the news: As part of a transition Age: N/A Selig’s Special Committee for On-Field zation: Health president and publisher Terrance C.Z. in leadership at the Cleveland-Cuyahoga Type of organi- Matters, charged with improving care Egger, on Ms. Simmons’ recent promo- County Port Authority that began with zation: Automo- baseball’s on-field product. (Think Involvement: tion from managing editor to editor. the resignation in November 2009 of tive instant replay, pace of play, etc.) Tolera Therapeutics CEO Adam Wasserman, Mr. Smith Involvement: N/A Inc.; Center for RICKY SMITH succeeded Richard Knoth as vice In the news: Mr. Stem Cell and Regenerative Medicine chairman of the port board last March. Spitzer played a leadership role in the CRAIG SHULAR Director at Case Western Reserve University; effort to set up an arbitration process Chairman, CEO Cleveland Airport System Teraphysics Corp.; Composite Tissue for auto dealers being cut by Chrysler GrafTech International Ltd. Cleveland BARBARA R. SNYDER Allotransplantation Advisory Council, and GM. In Spitzer’s case, the 18-store Parma Age: 48 American Society of Transplantation; President chain wound up with four fewer stores. Age: 58 Type of organization: Government, American Society for Reconstructive Case Western Reserve University But Mr. Spitzer expects to gain two Type of organization: Manufacturer transportation Transplantation Cleveland more stores in locations outside (graphite, carbon products) Involvement: American Association of In the news: Dr. Siemionow made Age: 55 Cleveland this year. Involvement: Board member, Brush Airport Executives, headlines around the world when she Type of organization: Education Engineered Airport Council led a team in performing the first Involvement: Third Frontier advisory Materials Inc., International, Airport MARC STEFANSKI successful face transplant in the United board; board of Junior Achieve- Minority Advisory States. directors, KeyCorp; Chairman, CEO ment of Northern Council, Leader- board of directors, Third Federal Savings and Loan Ohio, Boys & Girls ship Cleveland Greater Cleveland Association Club of Northern DEBRA ADAMS SIMMONS In the news: Mr. Partnership; Cleveland Ohio; member, Smith spearheaded Council for Higher Age: 56 Editor Blue Coats; leads the redesign of Education Accredi- Type of organization: Banking GrafTech partner- the concession tation; American Involvement: No outside boards Cleveland ship with East program at Cleveland Hopkins Interna- Law Institute In the news: Last Age: 46 Tech High School tional Airport and led the response to In the news: “We August, Mr. Type of organization: Media In the news: “As part of our growth the merger of Continental and United think we have very strong programs in Stefanski told The Involvement: Member, board of direc- strategy, GrafTech has been committed airlines. the arts and humanities but they have Plain Dealer he tors, executive to applying our core competencies in not been as visible as we think they had no idea why committee, graphite and carbon solutions to rapidly ROBERT C. deserve to be,” said president Snyder the federal Office Associated Press growing industries such as solar and in March after the university partnered of Thrift Supervi- Managing Editors; SMITH energy production,” Mr. Shular said in with The Temple-Tifereth Israel to use a sion told Third member, American President, CEO response to his company receiving a University Circle building as the home Federal to stop Society of News Spero-Smith $1.15 million grant from the U.S. of its performing arts programs. paying its dividend Editors; vice chair- Investment Department of Energy to construct a Renamed the Milton and Tamar Maltz and to suspend approving new home woman, board of Advisers Inc. high-efficiency thermal storage system Center for Performing Arts at The equity lines of credit. “If we knew what directors, Athena Beachwood for solar power plants. Temple-Tifereth Israel, CWRU had plans the rules are, that’d be great,” he told International; vice Age: 57 to spend $25.6 million to renovate the the newspaper. “The rules of the game chair, board of directors, Center for Type of organization: Financial services DR. MARIA SIEMIONOW 86-year-old building. are changing and we don’t know what Non-Profit Excellence; chairwoman, Involvement: Board chairman, ideas- they are.” Professor of surgery, director of board of directors, Youth Excellence tream and Ohio Northern University; vice plastic surgery research, Performing Arts Workshop chairman, Cleveland-Cuyahoga County ALAN SPITZER head of microsurgery training In the news: “Debra was a natural Port Authority; chairman, finance com- Chairman, CEO continued on PAGE W-16

Globally recognized Nationally ranked Locally vital

Kent State University is the region’s leading public university

• Ranked as one of the top 200 universities in the world, by Times Higher Education, London • Named to the top tier of the Best Colleges in the nation by U.S. News & World Report • Generated 1.96 billion in added income to the Northeast Ohio economy • Ohio’s second largest public university • Nearly 200,000 alumni worldwide • Celebrating more than 100 years of excellence in action

Excellence in Action

www.kent.edu 20101115-NEWS--28-NAT-CCI-CL_-- 11/10/2010 3:18 PM Page 1

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TERRY (welding) Involvement: portion of ’s ATM network. $350,000 to the Akron Community Involvement: Mentor Rotary; Foundation for establishing a digital STEWART Manufacturers Mentor Chamber MICHAEL SYMON media academy aimed at training President, CEO Alliance/MAPI of Commerce; Chef, owner, Lola, Lolita and B Spot citizen journalists. Rock and Roll Presidents Council; board of directors, Celebrity chef, Food Network Hall of Fame and member, Gas and United Way of Cleveland/New York JERRY SUE THORNTON Museum Welding Distribu- Lake County; Age: 41 President Cleveland tors Association; Alliance for Type of organization: Food/beverage Cuyahoga Community College Age: 64 board of governors, Working Together, Involvement: Autism Speaks Cleveland Type of National Electrical Manufacturers Lakeland Community College; Gyro Club In the news: “The beef cheek pierogi Age: 63 organization: Cultural institution Association; American Lung Association; of Painesville is still one of our Type of organization: Education Involvement: Board, Rhythm & Blues Juvenile Diabetes Research Foundation In the news: In 2010, Mr. Sustar has best dishes. Lola Involvement: United Way Services of Foundation, Philadelphia; Cleveland Film In the news: SmartMoney.com recently been recognized with the United Way of exploded. Never in Greater Cleveland; Commission, Positively Cleveland and included Lincoln in a feature on three Lake County Gus Gehring award, the my wildest Rock & Roll Hall of The Diversity Center of Northeast Ohio. big companies thriving without layoffs. NEO Success award and the Greater dreams, even Fame and Museum; In the news: The New York-based The web site noted that Lincoln guaran- Western Reserve Council, Boy Scouts based on (sales) Greater Cleveland Rock and Roll Hall of Fame Foundation, tees employment for workers with at of America Spurgeon award. projections, did we Partnership; Play- formed 10 years prior to the Cleveland least three years of continuous service think we’d be so houseSquare museum’s opening, made a $5 million and satisfactory performance. BETTY busy,” said Mr. Foundation; Cleve- gift to the Rock Hall to establish the SUTTON Symon in Crain’s land Museum of Art institution’s first significant endowment. FRANK C. SULLIVAN 30th anniversary issue, about the 1997 In the news: “I Chairman, CEO U.S. representa- opening of Lola, now Lolita, in Tremont. think community THOMAS J. STRAUSS RPM International Inc. tive, Democrat, colleges are dream catchers. … A lot of Medina 13th District JASON THERRIEN people have dreams and things they President, CEO Age: 49 U.S. House of would like to do but, without a college Summa Health System Type of organization: Specialty Representatives President education, they can’t do them,” she said Akron coatings Copley thunder::tech in Crain’s 30th anniversary section. Age: 58 Involvement: Board member, The Age: 57 Cleveland Type of organization: Health care Timken Co., U.S. Type of organization: Government Age: 31 MIKE TRIVISONNO Involvement: Greater Akron Chamber, Chamber of Com- Involvement: N/A Type of organization: Media/marketing Akron Tomorrow, Radio show host merce, The Cleve- In the news: She was the architect of Involvement: Board member, E CITY; Austen BioInnova- WTAM-AM, 1100 land Foundation, the “cash for clunkers” auto rebate marketing com- tion Institute in Independence the Rock and Roll program. On Nov. 2, she won re-election mittee member, Akron, Habitat for Age: N/A Hall of Fame and to her third term in Congress. John Carroll Humanity in Type of organization: Media Museum, National University Entre- Summit County, Involvement: Linda Trivisonno endow- Paint & Coatings preneurs Associa- Premier Inc. THOMAS ment fund, Ireland Association tion; Positively In the news: SWIDARSKI Cancer Center, In the news: Mr. Cleveland; Mid- Summa Health University Hospitals Sullivan is most often found in news Town Cleveland System is President, CEO In the news: stories announcing developments at In the news: integrating its community hospitals and Diebold Inc. “His success is RPM, including earnings, the continua- Thunder::tech has expanding its physician network, Green due to the fact he tion of the company’s long-standing added this year six people to its staff, installing new technology and testing Age: 51 grew up in Cleve- dividend and acquisitions, such as bringing to 22 its current employment new reimbursement models through its Type of organi- land,” said media RPM’s June acquisition of Hummervoll, number. The firm also this year entered insurance subsidiary SummaCare. zation: Integrated analyst John Gor- a Norwegian flooring manufacturer. self-service delivery systems the Chicago and markets. man, in a Sept. 22 JOHN M. STROPKI Involvement: N/A Scene profile on Mr. Trivisonno. “He was ROGER SUSTAR In the news: Diebold this year JENNIFER the average guy in the street. He was Chairman, CEO President announced a multiyear agreement to THOMAS an opinionated guy. And the personality Lincoln Electric Co. Fredon Corp. provide automated teller machine just worked. ... With no experience, he Euclid Mentor services for ZAO Citibank, Citibank’s Program director, parlayed being a caller to a show to Age: 59 Age: 67 subsidiary in Russia. The company is Akron John S. become one of the biggest radio per- Type of organization: Manufacturing Type of organization: Manufacturing providing ATM outsourcing services for a and James L. sonalities in the .” Knight Foundation THOMAS N. TYRRELL Akron Managing director Age: 46 Collaborx LLC RICHARD C. HABER Type of organization: Nonprofit Richfield Involvement: University Park Alliance; Age: 65 NAMED 2011 LAWYER OF THE YEAR Akron’s biomedical corridor; Austen Type of organization: Identifies, Bioinnovation Institute in Akron assists for-profit, nonprofit collaboration In the news: The Knight Foundation Richard C. Haber, a founding partner of Haber Polk Kabat, LLP, Involvement: Chairman, Cuyahoga has continued its focus on journalism, Valley National Park Association Trails has been recognized by Best Lawyers® as the 2011 Lawyer of donating $63,000 to the Cleveland Forever Legacy Leadership Team; vice the Year in the area of Labor and Employment Law in Cleve- Foundation as part of $3.14 million in chairman, GLIDE Innovation Fund; land, Ohio. This prestigious honor is only granted to a single grants for the Knight Community Infor- board member, Glengary LLC, Lorain mation Challenge; it also gave lawyer in each specialty in each community. continued on NEXT PAGE ➤

In addition to being recognized as 2011 Lawyer of the Year, Mr. Haber also has been recognized by Super Lawyers magazine, for the seventh year in a row, as a “Super Lawyer” in the field of Employment and Labor law, an honor bestowed upon the top 5% of Ohio attorneys who have been practicing for at least 5 years. As well, in 2010, Mr. Haber also was named one of the top 100 lawyers in the State of Ohio by Super Lawyers magazine and listed in the 2010 edition of The Best Lawyers in America published by Best Lawyers® in conjunction with U.S. News Media Group as well as the 2010 edition of Cleveland’s Best Lawyers. In 2009 and again in 2010, Mr. Haber also was chosen as a “Leading Lawyer” in the area of Labor and Employ- ment by Inside Business magazine.

Haber Polk Kabat, LLP represents clients in all aspects of labor and employment litigation as well as complex civil litigation. … in people … in our community … in responsibility Since it was founded on August 1, 2005, every partner of the firm also has been recognized by Super Lawyers magazine as among the “top attorneys” in their field of practice. The Middlefield Banking Company ÜÜÜ°“ˆ``iwi`L>˜Ž°Vœ“ÊÊUÊÊnnn‡n䣇£ÈÈÈ To learn more about Haber Polk Kabat, LLP, Middlefield | Chardon | Newbury | Orwell | Mantua | Garrettsville | Cortland visit http://www.haberpolk.com. 20101115-NEWS--29-NAT-CCI-CL_-- 11/10/2010 3:18 PM Page 1

NOVEMBER 15-21, 2010 CRAIN’S CLEVELAND BUSINESS W-17

County Community cine, Alliance for Regenerative Medicine; hoping a positive economic outlook College Founda- board member, Biotechnology Industry that the nonprofit released in August tion and NorTech Organization; Greater Cleveland makes his job — attracting big employ- Home Healthcare In the news: Partnership Mid-Market Involvement ers to the area — a little easier. That Selected in May by Committee outlook showed that Cleveland hadn’t Crain’s as one of In the news: The company’s adult fallen nearly as far behind in this reces- Northeast Ohio’s stem cell therapy MultiStem, designed sion as it did in 1981. “We’re trying to biggest difference- to treat a variety of diseases, has establish the idea that the economy Here’s what our makers over the shown positive results in an early here is better than they thought,” Mr. last 30 years, Mr. Tyrrell stated in his clinical trial. Waltermire told Crain’s in August. profile: “Money is nice, but if someone patients are saying... comes up 15 years later and says, PAUL VOLPE DONALD E. WASHKEWICZ ‘You’re the best person I’ve ever worked for’ — that’s what it’s all about.” Founding principal, president Chairman, CEO, president City Architecture Parker Hannifin Corp. MICHAEL N. UNGAR Cleveland Cleveland “The VNA Age: 59 Age: 60 Partner and chair of the litigation Type of organization: Architecture Type of organization: Manufacturing department, Ulmer & Berne LLP Involvement: Board member, Cleve- Involvement: Board member, Greater is terrific.” President, Cleveland Metropolitan land Restoration Cleveland Partner- Bar Association Society, Intermu- ship and MAPI Cleveland seum Conservation Manufacturers Age: 51 Association, Mid- Alliance; education Type of organization: Law Town Cleveland, committee, “The personal attention Involvement: Chair, planning committee, and Alta House; National Fluid Cleveland Heights planning role for Power Association; In the news: The brownfield redevel- member, National the nurse gave me bar association opment, Cleveland Association of has a duty, Mr. Opportunity Corridor Manufacturers Ungar told Crain’s plan; assorted regional planning efforts In the news: According to an analysis was invaluable.” in June, to encour- In the news: City Architecture’s design published in October by The Wall Street age the “best and for the city of Cleveland’s new Journal, at Parker “profit more than brightest” candi- Collinwood Recreation Center incorpo- quadrupled from a year earlier to dates to pursue rates structural steel of old big box $222.2 million in the company’s fiscal careers on the stores on the site as part of the new quarter ended June 30 … But sales “They care, and bench. He created a Judicial Excellence building. grew only 25% to $2.8 billion. The Task Force, charged with spurring profit surge was aided by all types of more competition for judge positions. TOM cost cutting.” it means a lot.” GIL VAN WALTERMIRE ZEV WEISS BOKKELEN CEO Team NEO CEO CEO Cleveland American Athersys Inc. Age: 61 Greetings “They have added Cleveland Type of organi- Brooklyn Age: 49 zation: Economic Age: 44 Type of organiza- development Type of organiza- years to my life.” tion: Medical thera- Involvement: Third Frontier Advisory tion: Consumer pies developer Board; Business Volunteers Unlimited; products/services Involvement: Chairman, Center for Musical Arts Association; Presidents’ Involvement: Yeshiva University Stem Cells and Regenerative Medicine/ Council In the news: “While we continue to National Center for Regenerative Medi- In the news: Mr. Waltermire is continued on PAGE W-18

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W-18 CRAIN’S CLEVELAND BUSINESS NOVEMBER 15-21, 2010

see an erratic recovery in the economy ED WESTON In the news: The and its effect on our top line, our team family-owned has executed well on cost containment Director Wolstein Group and and that execution has directly led to Great Lakes Wind Network partner Fairmount healthy cash flow,” said Mr. Weiss in a Cleveland Properties of statement that was posted as part of a Age: 58 Cleveland pushed Sept. 29 Crain’s earnings report on the Type of organization: Manufacturer to assemble a new company. network financing package Involvement: N/A for the $250 FRANZ WELSER-MÖST In the news: The group, an arm of million Flats East Bank Neighborhood manufacturing advocacy organization Music director and Ernst & Young Tower office Magnet, is charged with leading the building. way for Northeast Ohio companies to Cleveland supply the expanding wind market. Age: 50 THOMAS F. ZENTY III Type of organization: Cultural institution BRAD WHITEHEAD CEO Involvement: General music director, University Hospitals Vienna State Opera President Cleveland In the news: The Fund for Our Economic Future Age: 54 orchestra, with the Cleveland Type of organization: Health care help of a $20 mil- Age: 50 Involvement: American Hospital Asso- lion grant from the Type of organization: Nonprofit ciation; Greater Milton and Tamar Involvement: Brookings Metropolitan Cleveland Partner- Maltz Family Foun- Advisory Council, ship; the Urban dation, is launch- Cleveland State League; BioEnter- ing an initiative to University Levin prise; Cuyahoga get more young School Visiting Community Col- audience members to . Committee, River- lege Foundation Gate Development In the news: Uni- PAUL WESTLAKE Committee versity Hospitals is In the news: Managing partner in the midst of a The effort to land Westlake Reed Leskosky $1.2 billion renovation and construction a $4.25 million Cleveland project, which brought the region’s first grant from the federal U.S. Sustainable Age: 58 freestanding cancer hospital to Case Communities Program was led by the Type of organization: Architecture Medical Center and is creating the 144- Fund for Our Economic Future and its Involvement: Board chairman, Cleve- bed Ahuja Medical Center in Beachwood. member institutions. land Arts Prize; board member, HOW THEY WERE Musical Arts SCOTT Association and WOLSTEIN SELECTED Maltz Museum of President, Wolstein Group There were no specific criteria used in Jewish Heritage; Executive chairman, selecting the “Who’s Who: 150 Names member, U.S. Developers Diversified Realty Corp. to Know,” nor were they chosen through General Services Beachwood a selection or nomination process. Administration Age: 58 Rather, the editorial staff collectively National Peer Type of organization: Real estate gathered the names, taking into consid- Review Committee and Cleveland Clinic Involvement: Board member, National eration each person’s role in Northeast Arts in Medicine Institute Association of Real Estate Investment Ohio and that of their organization. An In the news: Building Information Trusts and Real Estate Roundtable effort also was made to include a range Modeling software and other technology national trade groups, Case Western of people, businesses and industries. “will separate the winners and the Reserve University, Greater Cleveland For space considerations, professional losers” in the architecture business, Partnership and Cleveland Development and civic organization involvement was Mr. Westlake said. Advisors limited to five listings per person.

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S-2 November 15-21, 2010 ESTATE PLANNING Advertisement TABLEOFCONTENTS Help us connect people to the wonders of the universe Overview and trends Charitable giving Business succession BETHEFUTURE S-3 Estate plan S-8 Philanthropy S-13 Ownership transfer checkup To learn more about estate planning and life income gifts to the Life insurance S-14 Other stakeholders Museum, contact Sheryl Hoffman, Director of Major & Planned S-3 Ohio Legacy Trust S-9 Donor-advised funds Gifts at (216) 231-4600, ext. 3310 or [email protected] S-4 Changes in the law Retirement plans www.cmnh.org Three-part plan S-6 Family gifting S-15 Taxes S-10 Gift annuities Roth IRAs Best practices Lead trusts S-16 Tr usteed IRAs S-6 Fiduciary S-11 The responsibilities rewards of giving S-7 Choosing a lawyer Education S-12 Dynasty trusts Proper asset titling S-16 Funding options Choosing trustees GRATs S-8 S-13 S-17 529 plans Help elderly Related topics S-17 relatives craft estate plan S-18 International estate planning Fine art appraisals S-19 Split-dollar plans Insurance assets

PRESIDENT’S LETTER Uncertainty presents opportunity

he Estate Planning Since the Council’s planning advice as part of the Council of Cleve- Estate Planning Section planning process. land, in conjunc- last appeared in November The Estate Planning Council tion with Crain’s 2009, the financial world of Cleveland is composed of a TCleveland Business, is in which we live continues diverse array of more than 440 Real Estate/Construction pleased to present the to change. A change in professionals working in the Greater annual Estate Planning estate and gift tax laws Cleveland area, including attor- Section. It is the council’s looms and domestic neys, accountants, bankers and John Funk, Director of goal to offer the commu- RADD RIEBE economic performance trust officers, financial planners, Real Estate Practice nity valuable information remains sluggish. insurance agents, appraisers and related to financial, retirement, Despite uncertainty, the need representatives from charitable insurance, business succession, and for the preservation of assets built organizations. Our members are Property is as unique as its owner. Our estate and charitable planning. over a lifetime for the benefit of ready to provide you with clients benefit from our depth of industry The articles and commentary on family, heirs or charities is ongoing. thoughtful, tax-effective and value- knowledge and our commitment to offering personal- the pages that follow have been Evaluating how your personal based planning. Our Council’s provided by some of Northeast objectives for leaving a legacy web site (www.epccleveland.org) ized attention and insightful solutions. The knowledge Ohio’s most experienced profes- have been affected by the change can be a useful resource to locate of a trusted advisor can make the difference between a sionals in these fields. in laws and market conditions professionals to assist you with strong or shaky foundation. Estate planning is one of the should include consulting with all of your planning needs. most overlooked areas of personal professionals to advise you on We are pleased to be able to The Maloney + Novotny Real Estate Practice combines financial management. It is the methods, techniques and share the insights and commentary a wealth of experience with a passion for understand- estimated that more than 120 documents available to meet of our members and other area million Americans do not have your goals. If you are concerned practitioners with you in this ing the ever-changing landscape involved in property up-to-date estate plans to protect about transitioning a family- annual publication. We hope that development, ownership and management. themselves or their families in owned business, planning for you will find the information the event of sickness, accident or retirement, creating a legacy for insightful, helpful and valuable. ■ untimely death. Each year, this your family, or fulfilling philan- costs wasted dollars and hours of thropic goals, the articles in this Radd L. Riebe is president of the Estate hardship which can be materially section will address these issues Planning Council of Cleveland and a minimized with advanced plan- and the benefits of receiving managing director at Stout Risius Ross, ning and action. comprehensive tax and estate Inc. in Cleveland.

SPECIAL NOTE + Business Advisors and Certified Public Accountants Consult an attorney and financial advisers to evaluate individual + Cleveland 216.363.0100 estate planning needs. Canton 330.966.9400 IRS CIRCULAR 230 DISCLOSURE: Elyria 440.323.3200 To ensure compliance with IRS maloneynovotny.com requirements, we inform you that this communication (including any attach- ments) was not intended or written to be used, and cannot be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing or recom- mending to another party any transac- tion or matter discussed herein. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--33-NAT-CCI-CL_-- 11/10/2010 10:16 AM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-3 OVERVIEW AND TRENDS Protect asset health by giving estate plan a checkup

hether you consider to become quite com- (financial) power of should look at the effect of related existing plan may be open to yourself rich or poor, plex,” said Joseph M. attorney, health care issues such as the desirability of interpretations that could lead to when you die you Mentrek of Meaden & power of attorney and a life insurance, disability or long- a vastly different result from will leave behind Moore. “So even if you living will (if desired). term care insurance, as well as what you originally anticipated. Wassets. Your estate might include already have an estate plan, More complex family or the impact of pre-nuptial or buy- There may never be a better cash and investments, real estate, it is imperative that you financial situations may sell agreements, or other docu- time to schedule a checkup with tangible personal property, or revisit that plan to ensure require the use of a trust ments that affect your assets. your planner. The time you even an interest in an operating that it remains relevant.” or series of trusts to effec- The uncertainty regarding spend will give you peace of business. At its most basic level, Just like an annual visit JOSEPH tively accomplish your federal estate tax laws makes mind, knowing that your an estate plan determines how to your physician, a peri- MENTREK goals. An estate plan matters even more challenging. financial affairs are in order and your assets will be distributed to odic review of your estate checkup involves a thor- And in an election year, it is that you have adequately and your heirs after you die. plan can either reinforce that all ough review of all of these docu- anyone’s guess as to what, if any, appropriately provided for your “An estate plan isn’t just about is well, or it can uncover the need ments and determining whether action Congress will take. family. ■ assets, it is also about people. for additional attention to return the plan matches your wishes. Many older plans may not And when you add taxes to the your plan to a healthy state. In addition to the implemen- have been drafted with this veri- Joseph Mentrek is vice president with mix, a process that could have A basic estate plan should include tation or review of your docu- table roller coaster in mind. Meaden & Moore Financial Services. been fairly simple has the tendency a valid will, durable general ments, your estate plan checkup Consequently, the terms of your Contact him at 216-928-5343. Proposed THE ESTATE PLANNING COUNCIL trust statute OF CLEVELAND President Vice President Secretary Treasurer Program Chair Immediate Past President targets asset Radd L. Riebe Lisa H. Michel Marie L. Monago Beth M. Korth Jennifer A. Savage Erica E. McGregor

protection Tanzie D. Adams Jeannemarie DiPadova Robert S. Horbaly Larry E. McCoy Scott C. Silverman Kelly G. Adelman Nick DiSanto James M. Horkey Daniel J. McGuire Sandra M. Skocir Charles F. Adler, III Lynda Doland Brent R. Horvath Joseph M. Mentrek Mark A. Skvoretz he Ohio Legacy Trust Richard A. Ahrens Kara Downing Michael J. Horvitz Mark A. Mihalik Michael J. Sliman Committee, a committee Thomas D. Anderson Timothy Doyle Stuart M. Horwitz Lawrence Mihevic John M. Slivka of the Ohio State Bar Asso- Graham T. Andrews Emily A. Drake George A. Jacobs Charles M. Miller Martha B. Sluka ciation, is seeking legisla- Oakley V. Andrews William A. Duncan Paula Jagelewski Richard S. Milligan N. Lindsey Smith Gordon A. Anhold James R. Dunn Christopher P. Jakyma William M. Mills Cristin Snodgrass Ttion in Ohio that would allow the Gary S. Archdeacon Catherine S. Eclavea Barbara Bellin Janovitz Daniel F. Miltner Michael L. Solomon creation of asset protection trusts. Kemper D. Arnold Howard B. Edelstein Robert B. Jensen Wayne D. Minich Michael T. Sommerfeld ■ What is asset protection? Rosanne J. Aumiller Elaine Beth Eisner Theodore T. Jones Ginger F. Mlakar Richard T. Spotz, Jr. James S. Aussem Michael E. Ernewein James O. Judd M. Elizabeth Monihan William L Spring Asset protection planning is simply P. Thomas Austin Patrick J. Ertle Matthew F. Kadish Michael J. Monroe M. Randal Stancik the rearranging of someone’s Charles J. Avarello Christopher M. Essig Stephen L. Kadish Kenneth R. Morgan Cindy L. Steeb assets to minimize the chance of Molly Balunek Heather R. Ettinger Ronald L. Kahn Philip G. Moshier Kimberly Stein loss from future litigation claims. Peter Balunek Susan M. Evans Joseph W. Kampman Susan C. Murphy Laurie G. Steiner ■ Alexander D. Barclay Darren A. Ewaska Karen J. Kannenberg Hoyt C. Murray Saul Stephens Why does Ohio need this? To Lawrence C. Barrett Frank Fantozzi Amy A. Kapostasy Norman T. Musial E. Roger Stewart date, 11 states have adopted asset Russell Bauman Charles E. Federanich Kimon P. Karas Christine Myers John M. Stickney protection trust legislation. Ohio Stephen Baumgarten William C. Ferry William E. Karnatz, Sr. Jodi Marie Nead Thomas M. Stickney residents are establishing trusts in Edward J. Bell J. Paul Fidler William E. Karnatz, Jr. Lisa Wheeler Neely Robin R. Stiller Michael D. Benson Julie A. Fischer Bernard L. Karr Robert Nemeth Robert H. Stock these states and relocating them- Gina Marie Bevack Mary Kay Flaherty Howard Kass Michael T. Novak Thomas B. Strauchon selves and their assets to those Mohammed J. Bidar Robert E. Fleck Edmund G. Kauntz Stephen M. Nowak John E. Sullivan, III states in order to take full advan- Gary B. Bilchik Kimberly A. Florcosky Theresa M. Kean Anthony J. Nuccio Linda DelaCourt Summers tage of those states’ laws. John J. Bindas Robert B. Ford John D. Kedzior Eric A. Nye Scott Swartz ■ James A. Blue Judson Forner Michele Keith Michael J. O'Brien Joseph N. Swiderski What are the provisions of Alane Boffa Kevin J. Forney Lesley Keller Lacie L. O'Daire Natalie Bell Takacs the statute? The act enables a Jason Bogniard Patricia L. Fries Lisa M. Kerr Linda M. Olejko Yeshwant K. Tamaskar person to establish an irrevocable Daniel L. Bonder William H. Fulton Veena Khanna Lauren Anne Olsen John R. Telich, Sr. Christ Boukis Naomi D. Ganoe Dorothea J. Kingsbury Leslie A. O'Malley Mark M. Tepper trust, place assets into that trust and Laura Bozell Beverly Gans Richard B. Kiplinger Charles J. O'Toole Barbara Ann Theofilos still benefit from those assets Caprice H. Bragg Stacey M. Gardella Raymond G. Klinc Jodi L. Penwell Donald A. Thompson through the actions of one or Herbert L. Braverman Stephen H. Gariepy Paul S. Klug Michael D. Pepe Donna Thrane more trustees. Christopher P. Bray Rao K. Garuda Victor G. Kmetich Dominic V. Perry Philip Tobin James R. Bright Richard Gary Erik R. Kneip Alex S. Petrus Thomas L. Tobin The person establishing the Susan Brooks James E. Gaydosh Daniel R. Kohler Craig S. Petti Eric Tolbert trust must create an affidavit and Don P. Brown Christopher Geiss James R. Komos Daniel W. Phillips Floyd A. Trouten, III aver in it that the transfer will C. Richard Brubaker Thomas M. Genco Thomas H. Konkoly Thomas Pillari Mark A. Trubiano not render the person insolvent, Robert M. Brucken Arthur E. Gibbs, III William H. Koptis Gregory M. Pinter John R. Tullio, Jr. Armond D. Budish Thomas C. Gilchrist Harvey Kotler John W. Pinter Diann Vajskop defraud his creditors, or be done Martin J. Burke, Jr. Stephanie M. Glavinos Roy A. Krall Douglas A. Piper Robert A. Valente prior to filing for bankruptcy. The Eileen M. Burkhart Catherine Klima Gletherow Frank C. Krasovec, Jr. Candace M. Pollock Missia H. Vaselaney person must identify pending or J. Donald Cairns Ronald J. Gogul Peter G. Kratt Mary Ellen Potter Joseph Frank Verciglio threatened court actions. Peter H. Calfee James A. Goldsmith Eugene A. Kratus Douglas Price Catherine Veres Carl Camillo Susan S. Goldstein Thomas W. Krause Maria E. Quinn Anthony Viola A qualified trustee must serve Nancy H. Canary Tom S. Goodman Bruce A. Kretch Susan Racey Mary Eileen Vitale during administration of the trust. William G. Caster Scott Goyetche James B. Krost Jeffrey H. Reitzes Michael A. Walczak The trustee cannot be the person Sal A. Catalano Alexandra Gray Deviani Kuhar Linda M. Rich Kimberly A. K. Walrod James R. Chriszt Karen Greco Craig A. Kukla R. Andrew Richner Robert W. Wasacz establishing the trust but can be an Trevor R. Chuna Marianne Grega Thomas J. LaFond Elton H. Riemer Neil R. Waxman Ohio resident or an entity autho- Mark A. Ciulla Sally Gries William P. Lange Kathleen K. Riley Ronald F. Wayne rized to act as trustee in Ohio. R. Michael Cole Nancy Hancock Griffith Gary E. Lanzen Michael G. Riley Michael L. Wear The person establishing the Warren Coleman Charles M. Grimm Donald Laubacher Frank M. Rizzo Stephen D. Webster Andrew R. Connors Alan Gross Daniel J. Lauletta Lisa Roberts-Mamone David G. Weibel trust can retain certain rights Jeffrey P. Consolo James P. Gruber Herbert B. Levine Kenneth L. Rogat Paul A. Weick without those rights being David E. Cook Timothy R. Haber Wendy S. Lewis James D. Roseman Jeffry L. Weiler construed as having retained the James I. W. Corcoran Patrick A. Hammer Keith M. Lichtcsien Carrie A. Rosko Richard Weinberg power to revoke the trust. Heather A. Cornell Ronald F. Hanson James Lineweaver Edmund W. Rothschild Katherine E. Wensink Christy Corrao Dana G. Hastings David F. Long Larry Rothstein Elizabeth Wettach-Ganocy The statute describes how and Greg S. Cowan Douglas R. Hastings Ted S. Lorenzen Rennie C. Rutman Marcia J. Wexberg under what circumstances credi- Steven Cox Lawrence H. Hatch Sandra C. Lucas Patrick J. Saccogna Terrence B. Whalen tors have access to the assets in Thomas H. Craft Robert A. Hauptman Charles S. Lurie Robert Sanders Sharon Kai Whitacre the trust. Jean M. Cullen Janet W. Havener Robert M. Lustig Ronald S. Schickler Geoffrey B.C. Williams M. Patricia Culler Albert G. Hehr, III Matthew J. D. Lynch Bradley Schlang LeeDaun Williams The proposed statute draws Rand M. Curtiss Theodore N. Hellmuth James M. Mackey Dennis F. Schwartz Teresa M. Wisniewski from the best of the other states’ Cheryl A. D'Amico Kimberly Heman David S. Maher Vassie Scott, Jr. Nelson J. Wittenmyer laws and will allow Ohio to retain Jason S. Damicone James M. Henretta Stanley J. Majkrzak June A. Seech Matthew D. Wojtowicz ■ Stephen M. Darlington James R. Hickey Laura Malone John S. Seich Alan E. Yanowitz good citizens and their assets. Doris A. Seifert Day Mark W. Hicks Karen T. Manning Sally Sharaba James D. Yurman Holly N. Denham Jean M. Hillman Wentworth J. Marshall, Jr. Andrea M. Shea Jeffrey M. Zabor Joanne E. Hindel is chair of the OSBA Rebecca Dent Joanne Hindel Melissa L. Marvin Stanley E. Shearer Michael J. Zeleznik Legacy Trust Committee and vice presi- Thomas A. DeWerth Kenneth G. Hochman Douglas Mathey John F. Shelley David M. Zolt Carina S. Diamond Mark L. Hoffman Michael W. Matile Lea R. Sheptak Jack Zugay dent and senior personal trust officer for David S. Dickenson, II Doris Hogan Mark J. McCandless Nick Shofar Shawn D. Zurat Fifth Third Bank. Contact her at James G. Dickinson Ronald D. Holman Nancy McCann Roger L. Shumaker Gary A. Zwick 216-274-5633 or e-mail Gary L. Dinner Harold L. Hom Karen M. McCarthy Dennis J. Siciliano Donald F. Zwilling [email protected]. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--34-NAT-CCI-CL_-- 11/10/2010 10:20 AM Page 1

S-4 November 15-21, 2010 ESTATE PLANNING Advertisement OVERVIEW AND TRENDS The Trusted Advisors' Choice for Donor Advised Funds Congress’ inaction creates

True independence for your charitable estate planning. a need for estate planning Open investment architecture. ast year at this time, the those with a net worth less than that the entities’ governing docu- possibility remained that $3.5 million still was necessary to ments and the owners’ personal Expertise with non-publicly Congress would act to pre- avoid the 7% Ohio estate tax and estate plan documents (and any traded assests. vent the 2011 resurrection the other non-tax negative conse- redemption agreements) are Lof a much lower federal estate tax quences that come with a lack of coordinated and carefully crafted Unlimited succession. exemption and a much higher estate planning. For many, no to permit qualification under federal estate tax rate. No such estate planning was required to Section 6166 of the Internal action was taken, and none is prevent the imposition of the Revenue Code (IRC). American Endowment Foundation likely before Jan. 1. Thus, many FET (which was levied at a maxi- This will enable FET deferral who did not need to implement mum rate of 45%). As of Jan. 1, for up to nearly 15 years, and 1-888-440-4233 I www.AEFonline.org estate plans in prior years may that will no longer be the case. under Section 303 of the IRC for need to do so to avoid the impo- Who needs to seriously consider potentially income tax free (or at sition of a combined federal and implementing an estate plan in least capital gain treatment of) state estate tax at a rate that 2011? movements of cash from the could exceed 60%. ■ Those who live in Ohio companies to the estates of the In 2009, couples or individuals (individuals or couples) with a deceased owners irrespective of with a net worth of $3.5 million net worth exceeding $338,333; the owners’ basis in the interests or less generally could pass assets and individuals or couples (irre- before death and/or the existence to heirs free of federal estate tax spective of domicile) with a net of retained earnings. For over 104 years, Cleveland (FET) even if they did no estate worth exceeding $1 million. ■ Those with wealth in excess Sight Center has been assisting planning. While there would ■ Owners of interests in close- of their projected needs, who individuals with vision loss and likely still be Ohio estate tax (the ly-held businesses who need to may wish to reconsider gifting. ■ their families, which would exemption remains $338,333), plan for liquidity to pay the Those who need to engage in the highest marginal Ohio increased estate tax that will be estate planning to address non-tax- not be possible without the estate tax rate remains 7%. Thus, due at death. related yet potentially very costly generous philanthropic although estate planning among This should involve ensuring See CONGRESS Page S-20 support of our community. If you would like more information about how a planned gift can assist our clients to live, work, and play more safely and independently, please call Cleveland Sight Center at Year of the lifetime gift KEY SCENARIOS 216-791-8118 or visit ClevelandSightCenter.org. THAT COULD Our Mission: ard to believe, 2010 is goals with no certainty as to the IMPACT PLANS To empower people with vision loss to three-quarters over, yet tax consequences of any planning the federal gift and estate step. Still, interesting develop- ■ realize their full potential, and to shape tax picture is no clearer ments have occurred in this Although unlikely, Congress the community’s vision of that potential. Hthan it was last New Year’s Eve. As unprecedented environment. could reinstate an estate tax a result of Congressional inaction, For the past 10 years of federal retroactive to Jan. 1, 2010, at 216-791-8118 • ClevelandSightCenter.org estate planners have been forced estate tax phase-out, business a 55% tax rate for assets in to find ways to navigate in dense owners interested in passing on excess of $1 million. If a retroac- 1909 East 101st Street in University Circle fog — to achieve their clients’ the business to the next genera- tive tax is enacted, the courts tion were generally reluctant to will need to determine whether make gifts to family members, the tax is constitutional, further particularly those that would delaying the known tax conse- require payment of gift tax. But if quences for 2010 decedents. Go for it. We’ve got your back. anything is certain, it is that the ■ With the estate tax on hiatus federal estate tax repeal will last, in 2010, estate assets of 2010 at most, only decedents do not receive a fully At Roetzel, we view the world like our clients do - with an entrepreneurial, one more calen- automatic stepped-up cost innovative and results-oriented mindset. Just ask Steve Cox. dar quarter. The basis. Determining the cost short odds are basis going forward may be on a re-enact- difficult and confusing. ment of the ■ The cumulative aggregate $3.5 million exemption for taxable gifts is applicable estate $1 million through 2010. Gifts in tax exemption excess of the cumulative exemp- PATRICIA and 45% estate tion are taxed at 35%, excluding PACENTA tax rate. By con- gifts up to $13,000 per recipient. trast, this year’s ■ An extension of the 2001 gift tax rate is only 35%. Even if and 2003 tax cuts is likely for the that rate is increased retroactively, middle class. An extension of the transferring the family business to tax cuts for taxpayers in the top the next generation during the income tax bracket is undecided. owner’s life — even at the cost of gift ■ The top income tax rate of tax — now may be compelling. 39.6% will be reinstated on Although legislation restricting Jan. 1, 2011, long-term capital valuation discounts for transfers gain rates will rise to 20% and of closely held businesses has been dividends will be taxed at the top introduced, it appears to have ordinary income rate (instead of little traction at present. Minority the long-term capital gains rate). Our Estate Planning Group focuses on maximizing opportunities and minimizing risks ownership valuation discounts The Obama administration’s continue to be upheld by the budget calls for taxing both divi- so you can focus on your business. Our Estate Planning team members, including courts. A low growth, low interest dends and long-term capital .JDLFZ1PF,&SJLB)BVQU, &E)FSUFOTUFJO and 4UFWF$PY, have your back. rate economic climate is excellent gains at 20%. Some suggest for structuring gifts and/or sales of there will be a compromise. ■ To learn more, call Steve directly at 330.849.6714 minority business interests. Since Additional taxes will be . estate tax repeal after 2010 is but a imposed in 2013 on high-income or visit ralaw.com/estate_planning dim dream, strong incentive exists people by The Patient Protection to take advantage of the current and Affordable Care Act of 2010. environment for lifetime gifts. Linda M. Olejko, CFP is vice presi- Patricia Pacenta is shareholder, Trusts dent, Business Development at and Estates, Buckingham, Doolittle & Glenmede. Contact her at 216-514- NEW YORK 8"4)*/(50/ %$t t$-&7&-"/%t$0-6.#64t",30/t$*/$*//"5* Burroughs, LLP. Contact her at 330-376- 7876 or [email protected]. 50-&%0t'035.:&34t/"1-&4t03-"/%0t5"--")"44&&t'035-"6%&3%"-& 5000 or e-mail [email protected]. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--35-NAT-CCI-CL_-- 11/9/2010 3:39 PM Page 1 20101115-NEWS--36-NAT-CCI-CL_-- 11/9/2010 3:39 PM Page 1

S-6 November 15-21, 2010 ESTATE PLANNING Advertisement OVERVIEW BEST PRACTICES The best of times to make gifts Trustees must adhere

ith a nod to Victor ifest themselves in the pursuit of taxes payable in 2010 could be to strict fiduciary duties Hugo’s “A Tale of additional taxes. More tax dollars less than half of those for the same Two Cities,” the re- will be sought through rate increases transaction in 2011, if the worst- he Uniform Prudent policy last longer than the life cent economic woes and rule changes. One of those case scenario from Congress Investor Act (UPIA) expectancy of the insured? Should Wagain emphasize the “it was the best rule changes calls for cutting or unfolds. instructs trustees on the it be a paid-up policy or will the of times, it was the worst of times” eliminating valuation discounts Rarely do conditions align to duties they must perform trust expect to pay premiums on dichotomy, making now an ideal (frequently 25%-45% under create the perfect storm for tax- Tto meet the fiduciary duties they the policy for a number of years? time to consider tax efficient current law) payers to make assume once they become a ■ Implement the strategy family gift opportunities: for intra-family transfers of inter- trustee for a trust. with the appropriate products. transfers. If such ests to family When trusts contain a variety Once the objectives and terms of LOW INTEREST RATES AND legislation is members, but of investments or when they the trust are understood, what LOW ASSET VALUES. Interest enacted, the cost 2010 appears to contain assets worth a large assets should the trust own to meet rates and asset values have not to families making be one of those amount of money, these duties them? recovered from their pre-reces- gifts to heirs will times. can seem time-consuming and ■ Regularly review policies sion levels. In particular, real increase substan- If one is con- complicated. and investments and make estate values remain severely tially. vinced that the Each state has laws that estab- changes as needed. This process down in value. The Federal future will bring lish the standards trustees must should be documented. Reserve’s monetary policies and TAX RATES higher tax rates, follow. A trustee who doesn’t The UPIA allows a trustee to general economic sluggishness INCREASE NEXT YEAR: Gift tax new limitations on discounts for meet these standards can be held delegate investment and manage- contribute to these conditions. rates are scheduled to increase family transfers and economic personally responsible for trust ment functions to an objective When these conditions will from a top rate today of 35% to recovery, the opportunity losses. To maximize benefits for third-party professional. The reverse is unknown, but the 55% in 2011. A taxable gift of a presented this year to take advan- the trust beneficiaries, and to trustee is not liable for the deci- correct answer is a multimillion- $1 million asset transferred to tage of low tax rates and low reduce personal liability for trust sions or actions of that profes- dollar one for family gifts. children in 2010 might be valued values is not likely to be repeated losses, trustees need to: sional, but is still responsible for for gift tax purposes at $650,000 anytime soon. ■ ■ Understand the objectives periodically reviewing any third- VALUATION DISCOUNTS (after discount) and incur gift and terms of the trust. Are the party’s performance. AVAILABLE: The environment taxes at 35% ($227,500). That Radd Riebe is managing director of the trust assets designed to provide Attorneys, trust officers and for valuation discounts is subject same gift in 2011 may be valued Valuation and Financial Opinions Group for estate liquidity, contribute to non-professional trustees can to proposals circulating in Con- at $1 million (assuming discounts at Stout Risius Ross, Inc., Cleveland. a charitable organization or benefit by working with a trust gress. The past spendthrift ways are prohibited by law) with a tax Contact him at 216-373-2998 or visit perhaps care for a disabled child? adviser who specializes in a of Congress are expected to man- rate of 55% ($550,000). The gift www.srr.com. ■ Develop a reasonable specific asset — for example, life investment strategy. How much insurance. This trust adviser will financial risk is the trust willing bring industry-specific knowledge to take to reach its goals? and experience to the case to ■ University Hospitals Makes the Difference. Adopt a written management help ensure the trust is managed statement. If the trust contains properly and according to the a life insurance policy, this law. ■ becomes a policy management statement and describes what type Mike Pepe, CLU, is founder of The TOLI Fergus Family Gift Benefits Maternal-Fetal Care of coverage is expected. Should the Group. Contact him at 216-325-1686.

ADVISORS TO INDIVIDUALS AND BUSINESSES ON THE PRESERVATION, PROTECTION AND RESOLUTION OF MATTERS INVOLVING: Estate and Trust Administration Guardianships Estate Planning Adoptions Succession Planning Probate and Trust Litigation

Mary and Terry Fergus and Family

Terry Fergus and family wanted to honor wife and mother Mary Fergus for her many years of dedication as a neonatal nurse. Their generous gift created the Mary D. Fergus Endowed Chair in Maternal-Fetal Medicine that Angela G. Karen A. Jerrold L. Jeanne V. Gary W. Roy A. will advance care for high-risk pregnancies at University Hospitals. Carlin Davey Goldstein Gordon Johnson Krall

“It is a great pleasure to give a gift in honor of my wife, Mary, for her many years of dedication, caring for the sickest of babies,” said Mr. Fergus.

At University Hospitals, the Diamond Legacy Society recognizes and celebrates individuals, like Mary and Terry Fergus, who leave a meaningful legacy for future generations. Eugene A. Samuel J. Shawn W. Paul Y. Joseph B. Kratus Lauricia III Maestle Shapiro Swartz Contact a UH gift planning professional to work with you and your advisor in customizing a gift plan to create your own personal legacy at University Hospitals. Call 216-983-2200 or visit uhgiving.org.

The Tower at Erieview 10 West Broad Street, Suite 2400 1301 East 9th Street, Suite 1900 Columbus, Ohio 43215-3469 Cleveland, Ohio 44114-1862 TELsFAX TELsFAX

670 West Market Street 24100 Chagrin Boulevard, Suite 200 Akron, Ohio 44303-1414 Beachwood, Ohio 44122 TELsFAX TELsFAX

Crain’s Cleveland Business Custom Publishing 20101115-NEWS--37-NAT-CCI-CL_-- 11/9/2010 3:40 PM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-7 BEST PRACTICES

Poor asset CHECKLIST How to choose a good attorney titling can Tips for avoiding asset he federal estate and gift concerns and questions in detail, ■ Works for a law firm that titling mistakes: tax system has changed without fear of incurring addi- values estate planning. Some law ■ Ask your financial adviser dramatically over the past tional legal fees. firms minimize the value of estate foil legacy to provide a summary detailing year. While it is unknown ■ Offers to meet you planning because it may not Twhat the tax system will be in 2011 outside of the office. Talking bring in the attention or money the transfer of your assets at he first step in any estate your death based on how your and beyond, this year offers about dying is difficult, and other specialized areas of the law plan is having one, but assets are currently titled so you opportunities to reduce taxes that discussing personal aspects of garner. Your attorney should even the most detailed of can determine what changes may not exist in the future. your life in an office setting can work at a firm that values the plans may be completely may be needed. While your estate planning be uncomfortable. Your attorney importance of estate planning Tbypassed if the assets included in attorney must have a thorough should be willing to meet you at and estate planning clients. ■ Choose advisers with ■ Maintains a relationship it are not titled properly. whom you are comfortable, and knowledge of complicated tax your home or in another setting with you after your documents It is important for individuals to then be open and honest about and related laws, and be an artful that is comfortable for you. ■ Finds the personal side of are prepared. understand that a will controls your wishes and the details of drafter of documents, the attor- Your attorney estate planning rewarding and only the disposition of assets held all of your accounts. Select ney’s personal attributes are just should keep you informed of takes pride in his or her work. in their individual name. advisers who will be objective as important. You should be significant changes in the law Assets that pass by contract, and not driven by commission. comfortable having a thoughtful Some attorneys get bored preparing and remind you to review your such as life insurance or retire- discussion about the personal wills and trusts for hundreds of documents periodically. Good ■ ment accounts, are controlled by Ensure your financial adviser aspects of your life with your clients each year. Good estate estate planners value the rela- the beneficiary designation, not a is working closely with your attorney. Consider whether your planning attorneys provide their tionships they maintain with provision in the will. Therefore, attorney and accountant, and attorney: clients with excellent service their clients over many years. knowing what your assets are, that all are fully informed of your ■ Really cares about your because they find the personal ■ Estate planning involves how they are titled and following wishes and plans. concerns. For you to feel relationships they develop reward- listening, giving advice and through to ensure correct titling is ■ Regularly revisit all aspects comfortable discussing personal ing and often become the estate helping clients make the correct critical to your legacy. of your estate plan, including the issues, you should feel that your planner for several generations choices for their unique circum- Avoid these common titling titling of assets. Any life-changing attorney is truly interested in and related members of the same stances. Being a good estate planner mistakes: event or tax law change should helping you. A good estate family. requires more than having a be a trigger. planner must care about the ■ Is a good listener. Your thorough knowledge of tax laws ■ Joint and survivorship client and empathize with the attorney must truly understand and being skilled at drafting doc- assets. At death, these assets pass client’s concerns. not only the information you uments. It involves compassion, by contract to the surviving owner. care of a second spouse as well ■ Provides a fixed-fee option. convey but also the concerns and empathy and understanding. We often see a client who has a as the children from a prior Clients often get nervous about questions you express. Successful You should be confident that joint account with a caretaker marriage. However, if assets are contacting their attorney too estate planning may require you your estate planner possesses all child. Unfortunately, many clients titled in joint and survivorship often. They fear that “the clock is to think about your relationships of these attributes. ■ do not realize that this means that form with the second spouse, the ticking” and they will be charged and attitude toward money in a those assets pass only to that one children from the prior marriage extra if they ask questions. Paying way that you never have before; Barbara Bellin Janovitz is chair of child at the client’s death. can be effectively disinherited. a fixed fee to prepare your basic and your attorney should be Reminger Co., LPA’s Estate Planning As drafted, the estate plan may This unfortunate scenario can lead estate documents allows you to sensitive to your issues and help Group. Contact her at 216-430-2178 provide a detailed plan for taking See TITLING Page S-20 discuss your estate planning you address them. or [email protected].

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.

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Crain’s Cleveland Business Custom Publishing 20101115-NEWS--38-NAT-CCI-CL_-- 11/10/2010 10:33 AM Page 1

S-8 November 15-21, 2010 ESTATE PLANNING Advertisement BEST PRACTICES Selecting trustee key to success NY CS 6341062 BC007 07/10 Stephen Baumgarten, CFA hoosing a trustee is the best judgment in deciding when INDIVIDUAL. An individual Senior Vice President single most important

GP10-01505P-N06/10 and how to distribute the assets. trustee often has personal knowl- Wealth Advisor decision most people will Factors to consider in choosing edge of the grantor’s purposes in 24400 Chagrin Blvd., Suite 300 make in creating their a trustee are: size and duration of creating the trust. Individuals, how- Cestate plans. An incompetent or the trust; needs of the beneficia- ever, may not be able to fulfill the Beachwood, OH 44122 216-292-9046 uninterested trustee can ruin ries; assets expected to be held; duties because of death, disability or even the best plans. the relationships among the retirement. Individual trustees have © 2010 Morgan Stanley Smith Barney LLC. Member SIPC. “After 34 years of advising trustee and the beneficiaries; and to call upon the services of invest- clients on their estate plans,” said the tax consequences. Only cor- ment professionals and accoun- Jim Dickinson, a board certified porations that have been granted tants to fulfill their obligations. specialist in estate planning, pro- trust authority by a state can CO-TRUSTEES. Many of these bate and trust law, “I am still serve as a trustee. There are gener- advantages and problems can be Advanced Life Insurance unable to name the ideal trustee. ally no restrictions on an individ- managed through the use of indi- Each situation must be analyzed ual serving as trustee. vidual and corporate co-trustees. For Estate & Business Planning based upon a number of factors.” CORPORATE. Choosing a An individual can be named as A trustee must have the ability corporate trustee has several trust adviser and be given the to assemble and to manage a advantages: professional exper- authority to veto or direct invest- prudent, well-diversified portfolio tise, continuity, impartiality and ments, vote the shares of closely- With appreciation and in support of assets that will serve the needs accountability. The problem with held stock or give approval to dis- of the trust beneficiaries; must choosing a corporate trustee is cretionary distributions to of the Estate Planning Council of send periodic reports to the bene- cost, high employee turnover and beneficiaries. ■ ficiaries; and file state and federal takeovers. A corporate trustee Cleveland and the professional income tax returns. The trustee will may lack the ability to deal with James G. Dickinson is a partner with follow the instructions contained closely held business interests, Cavitch, Familo & Durkin. Contact him at advisory community in the trust agreement and use its real estate and other special assets. 216-621-7860 or [email protected].

Insurance Management Consultants CHARITABLE GIVING VEHICLES 159 Blvd., Ste. 260 Cleveland, Ohio 44145 (440) 801-1800 • Fax (440) 801-1900 Many options can help Michael Benson, Larry Rothstein, CLU, ChFC CLU www.imcwealth.com Managing Partner Partner achieve estate goals Securities Offered Through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC Insurance Management Consultants, LLC is independently owned and operated. © 2010 Insurance Management Consultants, LLC. iving through estate plans or life income gifts may be suitable for indi- THE BENEFITS Life insurance viduals who would like Individuals of all ages Gto support a charity, but need should explore the poten- can benefit your income from their assets during tial benefits of various their lifetime. estate planning strategies charity of choice ASSET The most common form of a to determine which tools PROTECTION planned gift is a bequest con- best fit their needs. Bene- tained in a person’s will or revoca- ost consider life insur- fits vary, and many gifts ance a way to protect ble living trust. General bequests can do the following: MERGERS & leave funds or property to a charity the family should the ACQUISITIONS without designating its use. insured pass away; but ■ Mlife insurance can be an effective Other bequest types may direct a Provide regular payments percentage of a person’s estate to for you and/or your spouse or way to make a charitable gift. REAL ESTATE charity or allow for the charity to other beneficiary; With the return of some form Estate Planning TRANSACTIONS receive residual funds after pay- ■ Reduce your taxes through of estate tax next year, many are ment of debts, taxes or adminis- charitable income tax deduction; acting now to remove assets from tration fees. ■ Reduce or avoid capital their estate to minimize the antici- BANKING/ pated impact. Wills & Trusts CREDITORS If you want to receive numerous gains taxes; or RIGHTS tax and financial benefits by creating ■ Save estate and gift taxes. Life insurance is one such asset a life income gift, you may want that is included in the taxable to explore creating a charitable estate if the insured is the policy owner at the time of death. To Corporate Succession CIVIL gift annuity or a charitable depending on the donor’s age. LITIGATION remainder trust. avoid estate tax, an individual with charitable intent could Planning When a donor makes an irrevo- CHARITABLE REMAINDER cable contribution of assets to consider arranging a gift of life TAX & TRUSTS allow donors to receive insurance now. BUSINESS fund the trust or annuity, he or income tax deductions and escape she will receive an immediate There are two basic approaches capital gains taxes. to using life insurance as a charita- Asset Protection income tax deduction for part The assets can be invested to of the contribution’s value and ble gift: Make a gift of an existing TRUSTS earn a lower rate of return when policy or establish a new one. income for life or a term between the donor is younger and later can one to 20 years. When the trust or A gift of an existing policy be shifted to earn a higher rate, should be considered when the Probate & Trust SUCCESSION & annuity ends, the remaining assets providing more income in the policy is no longer needed for its ESTATE go to the designated charity. donor’s later years. Administration PLANNING original purpose. The simplest way GIFT ANNUITIES provide Charitable lead trusts make an to make this gift is to name the older donors who give cash, agreed payment to the charity for organization receiving the gift as a specific term of years or lifetime. QUALIFIED securities, real estate or personal charitable beneficiary and assign Special Needs Planning PLANS property with fixed annual Thereafter, the assets are either ownership to it. payments that start at a time spec- returned to the person who A donor also could establish a ified by the donor. Gift annuities created the trust (who is eligible new life insurance policy. In Ohio, PROBATE are beneficial to donors who want to receive an income tax deduc- a donor first should establish the to receive income from assets that tion when the trust is created or policy in his or her name and have risen sharply in value, such passed on to children) or a desig- designate the charity as the as stock. nated heir. Applicable estate or beneficiary before transferring The charity will guarantee the gift taxes on the value of the ownership. Once the policy is in donor a fixed annual income for gift to the child or other heir place, ownership can be changed are reduced or completely elimi- ■ the rest of his or her life and assist ■ to the charity. Twentieth Floor1300 T 216.621.7860 the donor in avoiding capital nated. East Ninth Street F 216.621.3415 gains tax. The donor also receives Anne Corrette is manager of Gift Planning Cleveland, Ohio 44114 W www.cavitch.com an income tax break on a portion Advancement Department, Diabetes Services at Cleveland Clinic. Contact her of the earnings from an annuity, Association of Greater Cleveland. at 216-444-1251. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--39-NAT-CCI-CL_-- 11/9/2010 3:50 PM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-9 CHARITABLE GIVING VEHICLES

market instead of cost basis. Donor-advised funds boost charitable benefits Donors typically establish a donor-advised fund to act as a or most families, every Donor-advised funds are like a charitable tremendous flexibility in sup- multigenerational family fund for holiday season is the same porting his or her favorite chari- their charitable giving. The account — turkey, trimmings, family investment account. table interests, while enjoying can be personalized with a family and charity. According to the best tax benefits available.” name (e.g., “The Smith Family FThe Giving USA Foundation, “pre-fund” multiple years of giving charities. Donor-advised funds Donor-advised funds are an Foundation”), involve family Americans gave more than $227 while receiving a tax benefit of a can be established with an initial excellent alternative to a family members in recommending grants, billion to charity last year, mostly significant charitable gift in a year gift as low as $10,000. creating a private foundation. and name successor advisers. in the form of cash. that it may really be beneficial. “Although much of America’s They are becoming the fastest- Depending on the sponsoring While that can be the quickest Donor-advised funds are like a wealth is comprised of appreciated growing form of family philan- organization, the fund can last and easiest gift, too few donors charitable investment account. assets, both liquid and less-liquid, thropy because they can be used into perpetuity. Both the invest- consider the tax advantages of Appreciated assets, such as few Americans consider donating by families that don’t have exor- ments and the charities can be contributing assets such as pub- marketable securities, can be such assets,” said Phil Tobin, bitant wealth. Other advantages changed at any time to ensure the licly traded securities, closely contributed free of capital gains chairman and CEO of American can include the ease in establishing most charitable growth and the held stock or real estate. By giving tax, allowing the full gift to be Endowment Foundation. “Giving a fund, the lack of administrative changing charitable desires of the such assets into a donor-advised used over an extended period of appreciated assets to a donor- burden, greater privacy and a family. fund, a donor can essentially time for grants to numerous advised fund gives the donor greater charitable deduction of See DONOR Page S-20

Implement a three-part investments | trust | banking estate plan t’s time to put your af- fairs in order.” Usually, this intimidating phrase means it’s time to pre- pare“I a will, or to dictate how our assets will be handled after death. While these arrangements are important, successful estate plan- ning involves more than finances. An effective estate plan should include three essential elements: a financial plan, an advance care plan and an ethical will. Taking the time to create a three-part estate plan can have a tremendous impact on quality of does your life, particularly if you or a loved one is facing a serious illness. Each aspect of estate planning offers a time for reflection and celebration. financial advisor FINANCIAL PLAN: Financial planning is primarily asset distribu- tion and requires specialized legal and financial assistance. Wills and know the score? trusts allow us to continue to care for the people and charitable orga- nizations that we value most and ensure that our lifelong legacy of A well-planned financial life has all the complexity – and the fluidity – of a hard work will live on. It is vital to appoint a trusted financial power symphony orchestra. of attorney who will make deci- sions on your behalf, if needed. Property inheritance issues can Real life is complicated. People come to Key Private Bank for the simplified be loaded with emotion, but it is often easier to have the “money sophistication we bring to their financial lives. talk” with family and friends than to have the “what if” talk. Our team can help you achieve what matters most to you, delivering strategic ADVANCE CARE: Your advanced care plan focuses on the advice and objective wealth management solutions based on a fiduciary standard medical “what ifs” that can occur of care that puts your interests before our own. at the end of life. “What if I get an infection? Do I want antibiotics?” “What if I can’t swallow? Do I Your finances, your life – in tune, on key – for generations. want intravenous nutrition?” These are difficult questions. But imagine how difficult it would be for your family and friends to go to keyprivatebank.com answer them for you during a medical crisis. Would they agree call Louisa Guthrie, Key Private Bank Executive at 216-828-7877 on your course of treatment? The greatest gift you can give your loved ones is to relieve them of the burden of making uninformed choices on your behalf. Your advanced care plan should Bank and trust products from KeyBank National Association, Member FDIC and Equal Housing Lender. Investment products are: include a living will declaration as NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT well as a health care power of • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY attorney. These documents will be consulted only if you can’t Key.com is a federally registered service mark of KeyCorp. ©2010 KeyCorp. KeyBank is Member FDIC. ADL2139 communicate your wishes. Creating an advance care plan takes effort and the courage to have See HOSPICE Page S-20 Crain’s Cleveland Business Custom Publishing 20101115-NEWS--40-NAT-CCI-CL_-- 11/10/2010 8:58 AM Page 1

S-10 November 15-21, 2010 ESTATE PLANNING Advertisement CHARITABLE GIVING VEHICLES Congratulations to Generate income HOW DOES AN M. Patricia Culler ANNUITY WORK? Hahn Loeser & Parks, LLP from other sources A charitable annuity allows individuals to support a charity on receiving the Cash one way to fund gift annuities while receiving a cash reward 2010 Distinguished Estate Planner Award for years to come. It is a great way to give a donation and pay from Charitable Gift Annuity payments starting immediately. yourself back over time, while THE ESTATE PLANNING COUNCIL OF CLEVELAND (CGA) gives you fixed and Many people wish to support reducing your tax bill. For attractive pay- those in need but are example: ments for life, uncomfortable parting Aregardless of changes in in- with a large sum of cash Mary, 68, provides a one-time in today’s economy, even terest rates. More impor- cash donation of $5,000 to the if the income generated tantly, it provides a way charity of her choice. Her annuity We’ll help you from it would increase. to make a meaningful, en- rate of return, determined by the Here are a few creative get there. during gift to a nonprofit American Council of Gift Annuities ways to fund a CGA: organization. A CGA may based on her age, gift amount No matter what be right for you if: JAMES and other factors, is 5.5%. The ■ REAL ESTATE: The You want to support HICKEY rate is fixed over her lifetime. charitable cause you mere thought of market- a charitable organization. Her tax deduction the first year support, we invite ■ ing and selling a home, vacation You want income that is un- is $1,847. property or other holdings during you to visit our website affected by changes in the economy. She will receive $275 every ■ a lagging real estate market can be for free planned giving You want to maintain, and year ($180 tax-free, $95 ordinary exhausting. An alternative to education. possibly increase, income received income). selling the property would be to from your assets. “Annuities provide a competi- ■ use it to fund a CGA. Organiza- You want income tax relief tive and reliable rate of return tions may set CGA rates on a case- www.oprsfoundation.org/legacy this year. and allow donors to support their by-case basis for gifts of real estate, Access a library of planned giving essentials favorite charities at the same time,” relative to the anticipated risk and HOW IT WORKS: Through a said Kerry A. Mink, development Calculate your potential benefits expense to the organization for simple contract, you agree to manager of the Benjamin Rose holding and selling the property. Discover the rewards of life income gifts donate cash, stocks or other assets Institute. to a charitable organization. In Learn how to create a legacy for your cause return, the organization agrees to LIFE INSURANCE: If you own *Calculations are for illustrative pay you (and someone else, if you an insurance policy that you no purposes and should not be (no log in necessary) choose) a fixed amount each year longer need, use this “hidden asset” considered legal, accounting or for the rest of your life. to fund a CGA and turn this policy other professional advice. Actual Your Partner in Legacy Planning CGA payments are partially tax- into income. benefits may vary depending on the Provided as a public service of the Ohio Presbyterian Retirement Services free. The contract pays a set amount timing of the gift. Foundation. For more information about our work in northeast Ohio supporting for one or two lives, and provides STOCKS: When appreciated Breckenridge Village and Senior Independence, please call Jim Hickey at (440) 942-4342. current and future savings on stocks are used to fund a CGA, income taxes. If you prefer, you you gain a charitable tax deduc- Kerry A. Mink, Esq., is development may defer payments. Because rates tion while amortizing capital manager of the Benjamin Rose are based on age, the future annual gains taxes on the appreciation Institute. Contact her at 216-373- payout rate can be considerably over your life expectancy. This 1607. higher than the rate of annuity See CHARITABLE Page S-20 3URWHFWLQJ\RXU CLTs ideal DVVHWVLQDGLIILFXOW in current HFRQRP\ climate haritable lead trusts (CLTs) are excellent estate and tax-planning tools for individuals with large Cestates who wish to maximize wealth transfer to their heirs and make a generous gift to their favorite charity. By taking advantage of current market conditions, or appreciation of those assets, In addition, asset values should including low interest rates and are distributed to the donor’s recover over the coming years. depressed asset values, CLTs help heirs. The growth in trust assets is likely donors make lemonade CLTs are best suited for to outpace the low IRS “hurdle” out of the “lemon” donors who can afford to rate, and this value will pass economy. set aside a portion of tax-free to the donor’s heirs. 2XUDZDUGZLQQLQJ7UXVWV (VWDWHV Charitable lead trusts their assets for a certain Proposed federal estate tax DWWRUQH\VEULQJRYHU\HDUVRI are irrevocable trusts number of years. Donors changes could mean that estab- established either during are able to use these lishing a CLT is an even more LQWHJULW\DQGFRPELQHGH[SHULHQFH the donor’s life or upon trusts to remove wealth attractive estate and tax-planning WRWKHWDEOH death to benefit both from their estates and tool. Congress allowed federal charitable and non-chari- pass it tax-free to their estate taxes to lapse in 2010. How- table beneficiaries. Upon PATRICIA heirs. CLTs also are ideal ever, this is a short-term reprieve. Trusts & Estates creation, the donor trans- FRIES for donors who have Congress may reinstate estate taxes fers assets into the trust. assets, such as securities at the former levels or change the Probate & Trust Litigation Thereafter, the donor’s or real estate, that are expected to rules. Even if Congress takes no chosen charitable organization(s) increase in value over the term of action, estate taxes will automati- Succession Planning receives “lead” distributions (fixed the trust. cally return — at more burden- or percentage) each year for either Thanks to current market some levels — on Jan. 1. Charita- the donor’s life or a term of years. conditions, it is a great time to ble lead trusts and other estate These annual gifts from the trust establish a charitable lead trust. planning strategies will be more -DPHV$*ROGVPLWK can be designated to support the The IRS has lowered its special important than ever. ■  donor’s chosen program or capital MJROGVPLWK#XOPHUFRP rate used to predict how much project and, if done during life, the assets will grow while in trust. Patricia Fries is the senior gift planning www.ulmer.com can have an immediate and trans- This special “hurdle” rate has officer for University Hospitals, including formative impact. been at historic lows (2% in both the main campus and the commu- &OHYHODQG&ROXPEXV&LQFLQQDWL&KLFDJR At the end of the trust term, the October), which makes charitable nity hospitals. Contact her at 216-844- trust assets, including the growth lead trusts very attractive. 0430. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--41-NAT-CCI-CL_-- 11/9/2010 3:50 PM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-11 CHARITABLE GIVING VEHICLES Gifting to charity can leave a lasting legacy

he decision to create a rative fashion helps to ensure legacy gift — be it a chari- that their gift — and the method table trust, a bequest of of the gift — accomplishes their TIPS FOR SELECTING A CHARITY cash or transfer of tangible goals. Tproperty, naming an organization It is also important to have Selecting a nonprofit to provide for a specific project, a donors work with their attorneys as a beneficiary in a retirement include in your estate plan certain term of years or other and financial planners in a account or life insurance policy, is a personal experience. designated purpose, you should collaborative manner, which or establishing a charitable gift When selecting charities, I meet with the charity to be sure it often can lead to greater gifts annuity — is an important mile- highly recommend that can carry out your wishes and that and greater satisfaction for the stone. donors consider: your estate plans and MOU donors. A legacy gift not only speaks to ■ Do you want your gift to specifically reflect your wishes. Making a legacy gift is an the donor’s commitment to an be revocable or irrevocable? ■ Is the charity able to accept important life statement, one organization, but also illustrates ■ How well do you know your gift if you are donating tangible that should be personally the donor’s philosophy about the charity or charities? property? For example, leaving a rewarding and deeply gratifying. living, giving and his or her ■ How well does its mis- house to an organization that Often, nonprofit staff learns hopes for future generations. sion align with your values does not have the capacity to about a bequest gift only after a Considering what is best for and goals in life? maintain the property or to sell the donor has died. both the individuals making the ■ Do you have an established small gift — or a large gift? Or is it property immediately may actually By working with the gift, as well as the organization, is relationship with the charity? a small organization to which you be more of a liability than a gift. organization in advance, donors a key element in establishing a ■ What do you know about plan to leave a large gift — or a Make sure your gift is something can ensure their wishes are planned gift. the longevity/sustainability of the small gift? The size and capacity your charity can accept and from fulfilled — and it gives the While some donors have the charity? of the organization may be greatly which it can benefit. organization the opportunity means to immediately create a ■ How well has it handled its impacted by your gift. Can it carry ■ Do you want to make provi- to express how important these trust, others may only be able to finances? out your desires? sions if the charity’s program no gifts are to the sustainability of attain their philanthropic dreams ■ How well is it meeting its ■ Do you want your gift to go to longer exists? Do you want the the organization and ensuring its in increments. Some may be mission? a specific purpose within the charity, charity to designate the funds to a mission. ■ interested in earned income ■ What impact do you think your or would you prefer the charity similar program or problem it is during their lifetime, while others gift will have? Is it a large institu- determine how to best use your now undertaking? Sheryl Hoffman is director of Govern- may be interested in providing tion to which you plan to leave a gift? If you would like your gift to — Sheryl Hoffman for a loved one — as well as a ment Relations, Major & Planned Gifts charity. for the Cleveland Museum of Natural The ability to work with History. Contact her at 216-231-4600 donors in a creative and collabo- ext. 3310 or visit www.cmnh.org. MY BENESCH MY TEAM What good are we doing? Live for today. Plan for tomorrow. “In the quiet hours when we are lege of working with someone alone and there is nobody to tell us who is just as thrilled with the what fine fellows we are, we come rate of her charitable gift annuity For all the time and effort you’ve put into sometimes upon a moment in which as she is with knowing that her building your wealth, you deserve peace of we wonder, not how much money donation will ultimately support we are earning, nor how famous we fishing in , Gary B. Bilchik, Partner mind in return. The kind that comes from have become, but what good we are which was a passion of her late Co-Chair, Estate Planning and knowing your assets are protected, your wealth doing.” husband. Probate Practice Group will be distributed as you wish, and your future — A.A. Milne I also have had the opportunity Licensed to practice law to work with multiple genera- in Ohio and Florida is as secure as you can make it. here are many ways to tions of one family to create make estate plans, and an endowed program that perpet- Whether you need to build an estate plan from many charitable planning uates the beliefs of its family scratch, or ensure your current plan is in sync techniques to consider matriarch. with today’s rapidly changing laws, our Twhen determining the best way Northeast Ohio’s long-standing to include a gift as part of an tradition of making the quality of attorneys can help. We have the specialized estate plan. life a priority has allowed non- knowledge and experience to manage all However, before that process profit organizations to effectively aspects of your estate. begins, one or more organizations fulfill their mission throughout need to be identified as gift the region. Deviani M. Kuhar, Partner Have you considered how taxes will impact recipients, which often is easier Through listening to the Co-Chair, Estate Planning & your wealth? Do you have a business said than done. For some people, people we are working with and Probate Practice Group it is a clear choice; others need providing research assistance, we Licensed to practice law succession plan in place? Are you sure that guidance and direction from their have the unique opportunity to in Ohio your assets have been aligned properly with advisers. help them impro ve and preserve your estate plan? Have you planned for Anyone connected to the gift the quality of life throughout planning process knows how greater Cleveland. ■ charitable gifts…long-term care…incapacity? meaningful it is to help someone establish a planned gift. In many Karen J. Kannenberg, CFRE, is manager We can assist in these areas and help you cases, planned gifts fulfill finan- of Gift and Donor Development for manage your assets in ways that will minimize cial and emotional needs. Cleveland Metroparks. Contact her at the probate administration process. For example, I have the privi- 216-635-3217. Live for today…plan for tomorrow. Nick D. Shofar, Associate, Talk to us about how to get started. Estate Planning and IS AN ESOP RIGHT FOR Probate Practice Group, Licensed to practice law YOUR COMPANY? in Ohio Find out by contacting our 25 years ESOP experts today. Ray Lampner [email protected]

Doug Mathey Caring People. Shaping Futures. [email protected] certified public accounting Cleveland | Columbus | Indianapolis | Philadelphia | Shanghai | White Plains | Wilmington | www.beneschlaw.com and IT consulting firm www.bcgcompany.com Crain’s Cleveland Business Custom Publishing 20101115-NEWS--42-NAT-CCI-CL_-- 11/10/2010 10:41 AM Page 1

S-12 November 15-21, 2010 ESTATE PLANNING Advertisement CHARITABLE GIVING VEHICLES

Tired of paying for trades Dynasty trusts a valuable instead of guidance? vehicle, even sans estate tax hen the repeal of Most estate planners between the couple, leading to mari- federal estate tax first tal discord. If the assets are in a became a possibility, would agree that some trust, even if the beneficiary is the  FeeǦonly,independent, one of my partners form of federal estate trustee or co-trustee, the beneficiary objectiveinvestmentadvice Wsaid to me, “Don’t worry about can make his or her deceased par- tax will exist. your career. The golden age of ents or the trust the “bad guy.” In Š‡ ƒ‹”™ƒ›•—‹Ž†‹‰ trusts was long before there ever the case of an heir who is single or ͵͸Ͳͳ ”‡‡‘ƒ†ǡ—‹–‡ͳͲʹ was an estate tax.” greater concern for many clients. divorced and contemplating mar- Ž‡˜‡Žƒ†ǡ  ͶͶͳʹʹǦͷ͹ͳͻ Most estate planners would Although it is difficult to achieve riage, a dynasty trust may alleviate ʹͳ͸ǤͶ͸ͶǤ͸ʹ͸͸ agree that some form of federal asset protection planning for the need for a prenuptial agree- ™™™Ǥ•’‡”‘•‹–ŠǤ ‘  estate tax will continue to exist; oneself, it is relatively simple to ment, where the beneficiary’s own however, the possibility of an make one’s children or other heirs assets are not significant. estate tax repeal has led many to creditor-proof by using a dynasty focus on the non-tax benefits of trust. In many cases, the trust can BLOODLINE: Many clients Secure Your Future and Leave various estate planning tech- be structured to allow a beneficiary express the desire that their wealth niques, including dynasty trusts. to act as his or her own trustee stay in the family. A typical pat- A Legacy of Learning and Living Dynasty trusts can provide at and still receive this benefit. tern is for the trust to be held for least three distinct benefits: the benefit of the grantor’s child Your planned gift to the Diabetes Associa- DIVORCE/REMARRIAGE during his or her lifetime; and tion of Greater Cleveland (DAGC) will ASSET PROTECTION: Gener- PROTECTION: Under most then, at his or her death, for the ensure that current and future generations ally, throughout the United States, circumstances, a dynasty trust can trust to be held or distributed to the child’s lineal descendants. If of children, youth and adults living with it has been the rule that a self- be used to protect a beneficiary settled trust (a trust that provides from a divorcing spouse. Although the child has no children, a diabetes in Northeast Ohio receive the a beneficial interest to the grantor inheritances are separate property dynasty trust allows a parent to education and support they need to learn of the trust) may be reached by (non-marital property), assets that provide for his or her child but more, take charge, and live well with the the grantor’s creditors. Some states are co-mingled may lose their abil- still control the ultimate distribu- ■ disease. One hundred percent of your like Alaska and Delaware allow the ity to be identified. Many times tion of the assets. investment stays right here in our community to improve the quality of creation of self-settled trusts that the client will want an heir to are creditor-proof. Ohio has keep his or her non-marital prop- Missia H. Vaselaney is a partner with life for your friends and family members with diabetes. proposed similar legislation. As our erty separate; but in reality, that Taft Stettinius & Hollister LLP. Contact her at 216-706-3956 or mvaselaney To learn how DAGC can help you meet your financial and philanthropic society has become more litigious, may be difficult. The separation of asset protection has become a property may create a wedge @taftlaw.com. goals, contact Helen Dumski, President & CEO at (216) 591-0800 or visit www.dagc.org. Bloodline trusts protect family, goals

oo often people focus only prepared. Even if your child provides in on tax planning when Although federal or state estate his will that the inherited assets they have their estate tax planning is important, non- pass to the children, the in-law planning documents tax issues can be just as impor- still would have a right to receive T tant. How do you ensure that a portion of the probate estate. your estate passes to your chil- However, a bloodline trust dren and is protected from their provides that the assets are held creditors or a divorce? How do in trust for the life of your child you make sure your estate and eventually pass directly to BVSbVW\UaeSR]T]` ultimately passes to your grand- your grandchildren on the death children and not to your son- or of your child. daughter-in-law? Your child still will have access The bloodline trust is a tool to the money in the trust and can that can make sure these goals are even be the trustee. satisfied. However, if assets are held in A typical trust might provide trust for a child, the assets will that upon the death of the not be subject to most creditor parents the assets in the trust pay claims (except the IRS, the state out to the children when they of Ohio and child support) — reach certain ages. Once the including alimony payments. money is distributed out of the More importantly, the trust trust to the children, it could be will provide that upon your subject to creditor or divorce child’s death the assets must go claims. to your grandchild and not to Also, on the death of the child, your son- or daughter-in-law. the child’s estate plan probably The bloodline trust also can be B@CABA3@D713A provides that the son- or daughter- used in business succession plan- /a O QZWS\b ]T bVS 4WTbV BVW`R >`WdObS 0O\Y g]c¸ZZ VOdS OQQSaa b] O eWRS `O\US ]T in-law inherits your money. If ning to make sure that the busi- ■ ¿\O\QWOZ a]ZcbW]\a b] VSZ^ g]c `SOQV g]c` U]OZa O\R [OfW[WhS g]c` OaaSba´T`][ your son- or daughter-in-law ness remains in the family. eSOZbV^ZO\\W\UO\Rb`cabaS`dWQSab]W\dSab[S\baS`dWQSaO\RQ]\acZbW\U0cbbVOb¸a spends the money or remarries and leaves it to the new spouse, Mike Solomon is a partner with Budish, \]bOZZeS]TTS`ESY\]ebVObbVSQ][^ZSfWbWSa]TbVS¿\O\QWOZe]`ZRQO\a][SbW[Sa this money may never reach Solomon, Steiner & Peck, Ltd. Contact PS O ZWbbZS ]dS`eVSZ[W\U BVOb¸a eVg eS ^`]dWRS g]c eWbV O bSO[ ]T RSRWQObSR your grandchild. him at 216-245-0185. W\dSab[S\b ^`]TSaaW]\OZa eV] eWZZ VSZ^ g]c RSdSZ]^ O aW[^ZW¿SR ¿\O\QWOZ ^ZO\ bVOb¸aP]bVSOagb][O\OUSO\RSOagb]c\RS`abO\RB]O``O\USOQ]\acZbObW]\eWbV 4WTbVBVW`R>`WdObS0O\Y/RdWa]`4`O\Y@Whh]QOZZ $ %"#!$$ Budish, Solomon, Steiner & Peck, Ltd. Attorneys at Law Elder law, estate planning, business law, real estate, taxation, pension and profit sharing, succession planning, probate, 4WTbV BVW`R >`WdObS 0O\Y Wa O RWdWaW]\ ]T 4WTbV BVW`R 0O\Y ]TTS`W\U PO\YW\U W\dSab[S\b O\R W\ac`O\QS^`]RcQbaO\RaS`dWQSa4WTbVBVW`R0O\Q]`^^`]dWRSaOQQSaa b] W\dSab[S\ba O\R government benefits, health care and litigation. W\dSab[S\b aS`dWQSa bV`]cUV dO`W]ca acPaWRWO`WSa 7\dSab[S\ba O\R 7\dSab[S\b AS`dWQSa( Armond D. Budish • Michael L. Solomon /`S<]b42717\ac`SR =TTS`<]0O\Y5cO`O\bSS ;Og:]aSDOZcS Jennifer E. Peck • Laurie G. Steiner • Stanley M. Fisher /`S<]b7\ac`SR0g/\g4SRS`OZ5]dS`\[S\b/US\Qg /`S<]b/2S^]aWb 23240 Chagrin Boulevard, Suite 450 ■ Beachwood, Ohio 44122-5404 7\ac`O\QS^`]RcQba[ORSOdOWZOPZSbV`]cUV4WTbVBVW`R7\ac`O\QS/US\Qg7\Q Phone: (216) 765-0123 ■ Fax: (216) 595-2787 [email protected] ■ www.budishandsolomon.com

Crain’s Cleveland Business Custom Publishing 20101115-NEWS--43-NAT-CCI-CL_-- 11/9/2010 3:52 PM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-13 CHARITABLE GIVING VEHICLES BUSINESS SUCCESSION PLANNING Formulate solid strategy before transferring company ownership

There are many tactics that Management. How will Succession triggers. What business owners can employ as management be affected by events will put the plan into they craft a carefully considered 3the new owner? Will the 7action? succession plan. Regardless of the new owner manage the business, choice of planning tools, consider or will there be owners who are Equity. How and when the following to pave the way for not managers? Will you lose will the new owners receive a successful transition: quality managers because they 8equity in the company? Is it are not part of the ownership an all-or-nothing situation? Do Succession of ownership. group? How will the change they earn or purchase equity over Who will take over, and how affect employees? time? How much equity is the 1will they pay for the added current owner willing to part stake in the company? What roles Control vs. ownership. with now and later? will the spouse and any children Some ownership interests play in the succession, if at all? If 4have a control component Realistic valuations. What a child will not be active in and others do not, such as voting you think your company is Grantor retained ownership and management, vs. non-voting ownership interests. 9worth — and its true worth how will (or will) they be provided — may not match up. Make sure for? Business succession planning Plan review. How often the succession plan is based on annuity trusts: heads can bring family dynamics into do you need to review a the realistic value of the company. play — and those dynamics 5succession plan? If one is put cannot be discounted. in place, what flexibility do you Vision. What is the you win, tails you tie want to retain for changes? goal for all involved? Age of interested parties. 10 Rates should motivate investors Sometimes you know who Tax issues. Upon ownership 2is likely to die first. What transfer, what income, gift James Goldsmith is a partner and chair rantor retained annuity of the hurdle rate, the increase in happens in the event that your 6and/or estate tax ramifica- of the Trusts & Estates Group for Ulmer trusts (GRATs) are used value is passed to the beneficia- appointed successor passes away tions come into play? Who should & Berne LLP. Contact him at 216-583- to make future gifts of ries free of gift tax. Therefore, before you? bear the burden of such taxes? 7114 or [email protected]. appreciating property to assets likely to appreciate at a rate Gfamily and friends on a virtually higher than the hurdle rate are tax-free basis. The current ideal for use with GRATs. historically low interest However, there is a rates make GRATs more catch. If the transferor dies attractive than ever. during the GRAT term, GRATs are irrevocable the value of the remainder trusts where assets are interest in the trust is transferred. In exchange included in the transferor’s for the assets, the trans- taxable estate. To mini- feror receives an annuity mize the risk that the that pays back a fixed STEVEN COX assets will be taxed in the amount each year. The transferor’s estate, multi- transferor sets the annuity ple short-term GRATs are often amount and the length of time used. (or term) of the trust. When structured correctly, The transferor pays a gift tax GRATs offer little risk. If the assets on the current fair market value in the GRAT do not appreciate at of the trust assets, minus the a rate that exceeds the hurdle rate, value of the grantor’s retained the GRAT fails, but the transferor annuity interest. If the GRAT is receives all of the assets trans- structured so that the value of the ferred to the GRAT in the form of retained annuity is equal to the annuity payments. If the transferor value of the property transferred, does not survive the annuity there is no gift tax consequence. term, the GRAT fails at least in GRATs structured this way are part, but again, the transferor (or called “zeroed-out” GRATs. the transferor’s estate) is no worse When zeroing out a GRAT, off from a tax perspective than if the annuity amount is calculated the GRAT had never been created. using a rate set by the IRS (the Soon, this strategy may be too section 7520 rate) for the month good to be true. Changes to the 3KLODQWKURS\ of the transfer. The “hurdle rate” Internal Revenue Code may is the assumed rate of return for reduce the benefits of GRATs by the assets. For October, the hurdle requiring a minimum remainder 6XSSRUWLQJWKH)XWXUHRI0HGLFLQH rate was 2%, which tied the interest and a longer term. Because lowest rate in history. it is expected that any legislation The annuity amount is paid to would exclude existing GRATs, the transferor during the term of the opportunities exist and should be 3KLODQWKURS\KDVKHOSHG&OHYHODQG&OLQLF 7RVSHDNZLWKDPHPEHURI GRAT, and any property remaining seized quickly. ■ in the trust at the end of the EHFRPHDZRUOGOHDGHULQKHDOWKFDUH &OHYHODQG&OLQLF·VJLIWSODQQLQJ GRAT term passes to the benefi- Steven St. L. Cox is a partner with Roetzel %\VXSSRUWLQJWKHEHVWPLQGVWKHPRVW WHDPFDOO ciaries gift tax-free. If the GRAT & Andress. Contact him at 330-849- VRSKLVWLFDWHGWHFKQRORJ\DQGWKHÀQHVW YLVLWFOHYHODQGFOLQLFRUJJLYLQJRU assets produce a return in excess 6714 or [email protected]. IDFLOLWLHV\RXDQG\RXUFOLHQWVKHOSXV HPDLOJLIWSODQQLQJ#FFIRUJ UHDOL]HRXUJRDOVRILPSURYLQJPHGLFLQH DQGFRQTXHULQJGLVHDVHLQDFDOPDQG Experienced Estate Planners KHDOLQJHQYLURQPHQW

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Crain’s Cleveland Business Custom Publishing 20101115-NEWS--44-NAT-CCI-CL_-- 11/10/2010 10:46 AM Page 1

S-14 November 15-21, 2010 ESTATE PLANNING Advertisement BUSINESS SUCCESSION PLANNING Employee ownership plan may be viable exit strategy

hen considering the options relating to transitioning out of your business, an WEmployee Stock Ownership Plan (ESOP) should be in the running. An ESOP allows employees to become owners in the company. Below are answers to the common questions and concerns when considering an ESOP:

Q: I am only looking to diversify my holding and am not interested in selling the entire company. Is an ESOP still a possibility? Nature ... a gift to preserve! A: An ESOP can be used to buy a percentage or all of the shares of tional gains will increase the value employer contributions to the the privately held company. There of the company — and they share ESOP are tax deductible (subject to You can preserve the future in that increase. Training employees percentage limitations) and divi- of Cleveland Metroparks. are fiduciary responsibilities, and a formal business valuation will on the benefits and future poten- dends paid on ESOP-held stock The Emerald Necklace need to be prepared to confirm tial stock buyouts at retirement is may be deductible. extremely important. Endowment Fund of Cleveland the purchase price. If the transac- Q: How do I know if an ESOP Metroparks has been established tion involves less than 50% of the voting stock of the company, a Q: Is there a way to defer the makes sense for my company? within The Cleveland Foundation tax associated with the sale? A: Although an ESOP can be a to protect and preserve the minority interest discount will need to be considered. A: If the ESOP acquires shares in very useful vehicle, it comes with "Emerald Necklace" a “C” Corporation, the tax associ- a complex set of rules. However, for generations to come. Q: What can I do to ensure my ated with the sale may be deferred ESOPs create an ownership culture employees continue their employ- using a Section 1042 Rollover. The within a closely-held business, ment after I exit my business? rollover can defer income tax which is important for the A: A concern of many owners is permanently, and allows the longevity of the company. Make that they will sell the company owner to hold the reinvested share sure you are aware of the com- and the new owner will drastically until death and receive a basis plexities and do research and due change the operations. Although step-up at the time of the transfer diligence prior to making this the company needs to be run of the replacement property to the commitment. The first step is a For more information on how you can intelligently and efficiently, it is heirs. As long as the ESOP acquires feasibility study that should be preserve and protect Cleveland Metroparks, now owned by the employees you at least a 30% interest in each class prepared by an expert that has call Karen Kannenberg, CFRE, hired. If the ESOP is rolled out of outstanding stock, the seller may experience with ESOPs. at 216-635-3217 or visit properly, you will hopefully see a reinvest the sale proceeds into ESOPs are often the most clevelandmetroparks.com qualified replacement property. advantageous way an owner can and click "get involved." cultural change within the company once employees fully realize addi- Qualified replacement property achieve liquidity and gain from would include stocks and bonds of favorable tax deferrals. Setting up domestic operating companies. an ESOP requires a well-planned “S” Corporations have less tax strategy designed around favorable tax benefits (such as no meeting the owner’s goals for the section 1042 rollover or dividend company and his or her future. ■ deduction); however, shares of the ,V

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ZZZEGEODZFRP Laura Lee Martin (216) 383-3716; or email [email protected]. Hospice Connect: 800-707-8921 | hospicewr.org $NURQ‡%RFD5DWRQ‡&DQWRQ‡&OHYHODQG Crain’s Cleveland Business Custom Publishing 20101115-NEWS--45-NAT-CCI-CL_-- 11/9/2010 3:52 PM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-15 RETIREMENT PLANS

Prudent planning that takes into consideration all Window closing on Roth conversions of your estate planning goals can minimize the 2010 presents conversion now, the money dent Barack Obama signed the impact of estate and income taxes on your heirs. transferred to the Roth IRA grows Small Business Jobs Act of 2010. tax-free in the same manner as a The law includes a provision that chance to spread traditional IRA. The tradeoff is allows participants in 401(k), out taxes on IRA that distributions to you and 403(b) and 457(b) plans to con- your beneficiaries are tax-free. vert eligible account balances to a For example, if your money Roth account within the same Review retirement he end of 2010 is fast remains in the Roth IRA for more plan. Participants no longer will approaching, and with it years (unlike traditional IRAs, be required to remove the money the end of the opportunity Roth IRAs do not require distribu- and roll the funds over to an IRA. to make a Roth IRA tions to begin at age 70½), you To facilitate an in-plan conver- plans to minimize Tconversion and spread the tax could double or triple today’s value sion the plan must already have a over 2011 and 2012. The income while paying tax only on its value Roth contribution feature. Plans limits on who is eligible to convert at the time of conversion. that do not accept Roth contribu- to a Roth IRA were lifted effective A special rule applies for 2010 tions would have to be amended tax consequences conversions in which the tax is to add this feature. Jan. 1, 2010. Anyone, no matter how much deferred and the taxable income Additionally, to make an raditional IRAs and quali- vorable consequences because the their income is, can make a con- is split between 2011 and 2012. in-plan conversion the partici- fied plans like 401(k)s entire balance of your retirement version. The decision to convert is The conversion must be made by pant must have had a distributable and 403(b)s can be great plan may have to be distributed to whether it is better to pay tax on Dec. 31, 2010. event under the plans terms. retirement planning tools. your estate or to your beneficiaries your IRA today or when you actu- You can decide whether to pay A plan sponsor may decide to THowever, the benefits to your within the first five years of death. ally withdraw the funds in the the tax on your 2010 return or expand its distribution options, heirs can be greatly reduced when future. spread it out over 2011 and 2012, such as adding an in-service you consider the potential estate CONVERSIONS: If you believe Income tax is not the only by the due date (with extensions) distribution feature to allow and income tax consequences of there is a significant chance that issue, however; if structured prop- of your 2010 tax return. After participants to take advantage of retirement assets at your death. you would not need funds from erly, the conversion can be used to 2010, the ability to spread the tax this new provision. ■ Whereas assets held in a the IRA to meet your living transfer wealth to your heirs. is no longer available. personal brokerage account expenses, consider converting at Why would you want to pay tax David O. Reyes, CPA, is shareholder receive a “step-up” in basis at least some part of your IRA to a today rather than at retirement? NEW OPPORTUNITIES: A with Maloney & Novotny, LLC. Contact your death that can minimize the Roth IRA. You will have to Generally distributions from a new wrinkle to Roth conversions him at 216-363-0100 or e-mail potential capital gains tax conse- include the taxable portion of Roth IRA are tax-free. By making a was added Sept. 27, when Presi- [email protected]. quences to heirs, retirement any conversion amount on your plan assets retain their ordinary income tax return, but it will income tax implications. Prudent generally provide for tax-free planning that considers all of withdrawals to your beneficiaries. your estate planning goals can minimize the impact of estate INSURANCE: Recouping dollars and income taxes on your heirs. lost to income or estate taxes through insurance requires the BENEFICIARIES: Who you use of more expensive permanent name as the IRA beneficiary will insurance since it needs to stay in determine the estate tax conse- effect throughout your life. quences and how long income Survivorship, or second-to-die, taxes can be deferred. insurance is best to cover the Designating a younger genera- lives of a married couple. Insur- tion as beneficiaries of your tradi- ance benefits you the most if you tional IRA (if financially able to both die prematurely and only bypass spouse) allows them to paid a few premiums. stretch the minimum distribu- “Some people are shocked to tions (and the income tax conse- hear how much of their IRA quences) over their lifetimes. assets could be lost to estate and If you intend to leave money to income taxes at death,” says Kara charity, consider naming it as your Downing, portfolio manager at IRA beneficiary since the bequest Spero-Smith Investment Advisers, may qualify for an estate tax Inc. “But with proper planning, exemption and pass to the charity you can minimize their impact.” ■ income-tax free. Failing to desig- nate a beneficiary or not updating Matthew S. Olver, CFP, is senior VP of the designation when a beneficiary Spero-Smith Investment Advisers, Inc. predeceases you could have unfa- Contact him at 800-794-7545. Financial advisors help you protect your wealth. Supporting and Realizing Value We can help you preserve your legacy.

A donor advised fund is an exciting opportunity to engage your family in philanthropy. Making your grant recommendations a family project teaches children and grandchildren the value of giving to community and presents Trust and Estate Advisory Services an occasion to learn more about the needs of those who have less, and about the valuable organizations that serve those needs. There is no better ■ ■ Business Valuation ■ ■ Sale Advisory and Succession Planning way to ensure your values are passed on than by demonstrating those ■ ■ Discount Studies (FLP/LLC) values through conversations about philanthropy. Establish a donor advised ■ ■ Expert Testimony fund with the Jewish Federation and see how, together as a family, you can ■ ■ Real Estate Appraisal help make the world a better place.

25701 Science Park Drive · Cleveland, Ohio 44122 216.593.2900 · www.jewishcleveland.org Radd L. Riebe, JD, ASA ■ 216.373.2998 ■ [email protected] 5234 www.srr.com

Crain’s Cleveland Business Custom Publishing 20101115-NEWS--46-NAT-CCI-CL_-- 11/9/2010 3:53 PM Page 1

S-16 November 15-21, 2010 ESTATE PLANNING Advertisement RETIREMENT PLANS Trusteed IRA can skirt issues often associated with stretch IRAs

any financial and tax stretch opportunity. Unfortunately, in a manner appropriate to a bene- advisers have touted many trusts do not qualify for the ficiary’s needs. the glory of tax de- longest “stretch” income tax A trusteed IRA also can allow ferred compounding deferral. A trust that is ideal for an owner to control who the Mwith “stretch” IRA planning. ordinary estate planning may be beneficiary is allowed to appoint A “stretch” IRA simply means inappropriate to hold retirement as his or her beneficiary, allowing that a beneficiary has the option to plan or IRA assets. If the trust does a hard-earned retirement legacy defer withdrawals over the maxi- not meet IRS guidelines, the IRA to stay in the owner’s family. This mum amount of time permitted may have to be distributed within can be ideal for second-marriage under IRS distribution tables. as soon as five years after death. and blended-family situations. The problem with these TRUSTEED IRA SOLUTION: A Unfortunately, only a handful projections is that beneficiaries trusteed IRA can combine the tax of providers offer a sophisticated frequently waste this opportunity benefits of an IRA with the estate trusteed IRA solution. Trusteed and withdraw more than this — planning benefits of a trust. IRAs are ideal for those with often the entire amount — after Using this strategy, an IRA owner, rollover-eligible profit sharing, the IRA owner’s death. working with his or her estate 401(k), 403(b) or Keogh plans or How many 18-year-olds inher- planning attorney, customizes any IRAs larger than $500,000, iting a $1 million IRA would the beneficiary designation to who want to ensure the strongest spend 1/65 (percentage based on match the family situation. This tax deferral and asset protection 65-year life expectancy) or flexibility allows an owner to for their beneficiaries. ■ $13,485 in the first year? The encourage continued tax deferral “stretch” becomes a “blowout,” by limiting a beneficiary to the Thomas A. Danford is vice president of and the long-term projections minimum required distributions, Key Private Bank. Daniel F. Miltner, CFP, become more myth than reality. but with trustee discretion to go is senior vice president of Key Private Naming a separate trust as ben- beyond this for reasons estab- Bank. Contact Miltner at 440-788-4490 eficiary can prevent the benefi- lished by the owner. This ensures or [email protected], or ciary from squandering the the “stretch out” actually happens visit www.keyprivatebank.com.

EDUCATION Alleviate education sticker shock he total cost of a four-year not even include the cost benefit only one or a degree for someone born of the increasingly group of beneficiaries. this year could be more mandatory graduate Depending on its struc- than $300,000. This pro- degree. Parents are faced ture, contributions can Tjection, in conjunction with the with the daunting ques- qualify for the gift tax current economy, is enough to tion of how to finance annual exclusion, which is make any parent panic — and does such an undertaking, currently $13,000 ($26,000 especially when they may for a married couple) per still be paying off their CRISTIN beneficiary per year. own college loans. Fortu- SNODGRASS The terms of the trust nately, there are a number can vary the timing of of options, especially if planning distributions and the purposes begins early. for which they can be made, allowing for greater flexibility in 529 PLANS: One of the most the future use of the trust assets. Are you on track prevalent college funding tools is However, assets will not accumulate the 529 plan, which is a state- on a pre-tax basis, and depending sponsored investment vehicle. on the trust’s structure, either the The primary benefits include trust, the beneficiary or the grantor with your financial plan? tax-free growth while the account will be liable for the income tax. accumulates and the ability to make tax-free withdrawals from COVERDELL EDUCATIONAL Come talk with one of our the account for qualified higher SAVINGS ACCOUNT: Contribu- education expenses. Such expenses tions are limited to $2,000 per 50 professionals about: include tuition, books, fees, student per year and may not be supplies and, in some cases, room made after the beneficiary reaches – financial planning and board, at any eligible educa- age 18. The account grows tax free, tional institution in the country. and distributions for qualified – investment planning Any other withdrawal from the expenses at eligible educational plan is subject to a 10% penalty institutions are also tax free. It – insurance in ordinary income taxes (at the may be used for primary and – group health recipient’s rate) on the earnings secondary education as well as portion of the withdrawal. higher education, but benefits – qualified retirement plans may sunset for ESAs as of 2011 IRREVOCABLE TRUSTS: unless Congress acts. Call Jeremy Newton today at (440)683-9200 Irrevocable trusts can be set up to See STICKER Page S-20 www.cedarbrookfinancial.com

Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory Services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisor. Cedar Brook Financial Partners LLC and Securities America companies are not affiliated.

Crain’s Cleveland Business Custom Publishing 20101115-NEWS--47-NAT-CCI-CL_-- 11/10/2010 10:48 AM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-17 EDUCATION Walthall, Drake & Wallace LLP 529 accounts provide CERTIFIED PUBLIC ACCOUNTANTS Call our financial planning group specialists. savings benefits Our experts can help you with these services: • Cash Flow Management • Estate Administration s we approach the fourth The account owner can change • Charitable Gift Planning • Estate Planning quarter of 2010, we are the beneficiary or roll over the confronted with much funds to another plan for the • Divorce Planning • Retirement Planning uncertainty as to the same or a different • Education Planning • Risk Management Afuture of the federal estate tax. beneficiary without • Elder Care Planning • Tax Planning This quandary has led me to seek income tax conse- quences. Addition- solutions that address my clients’ 6300 Rockside Road Suite 100 Independence OH 44131 estate planning goals but also pro- ally, there are no vide the flexibility to respond to income limits on $130,000 to changes that may occur after the contributions. each 529 account 216-573-2330 walthall.com new law is settled. One of the least under- during one year or on one One strategy is the gift and stood benefits of 529 plans occasion. estate tax treatment of 529 saving is the account owner’s ability Assets in a 529 plan could accounts. to maintain control over the impact the beneficiary’s ability to There are two basic distinct accounts. qualify for grants and student aid. types of 529 plans: tuition prepay- This is possible because Investors should consider the ment plans, and college savings funding a 529 account is deemed investment objectives, risks, and investment plans. In addition a “gift” to the designated benefi- charges and expenses associated to growing free of federal and state ciary of the account even though with 529 plans carefully before annual taxation, 529 accounts can such beneficiary never has any investing. be spent free of federal and state right or entitlement to control However, few strategies seem to taxes for qualified educational over or legal interest in such offer as much control and bene- expenses; and the laws setting up account. fits, and in these uncertain times many plans offer account protec- Individuals are allowed to this may prove to be uniquely tion from creditors. access four future years of their valuable for many. ■ Although contributors don’t annual exclusion, currently receive a federal income tax $13,000, to utilize five years at once Contact Colin O. Anderson of Vantage deduction for the contribution, — meaning an individual could Financial Group at 216-642-8037 or the earnings aren’t taxed while contribute $65,000 and joint tax e-mail [email protected]. the funds are in the program. return filers could contribute Resources provided by Chris Stack, Esq.

FOLLOW CRAIN’S ONLINE FAMILY CONSIDERATIONS LEGACY ■ Crain’s on Twitter: Preserving the past, enriching the present, inspiring the future @CrainsCleveland ■ Crain’s on Facebook: Ensure right plan is in Facebook.com/CrainsCleveland Let us help create your legacy. ■ For up-to-date news: Contact Executive Director Stephen W. Madewell at 440-639-7275. place for elderly relatives www.CrainsCleveland.com Encourage discussions early on

any of us struggle (a current tax return will help every day to make with this). certain we are finan- A downloadable Excel file to What do cially sound and have document this information, as well Mour estates in order. What about as other worksheets, is available Mom and Dad? Or Aunt Mary? at www.walthall.com/practice Many elderly are depending on _groups/financial_planning. You value? the 55-plus generation for guid- Reviewing these documents is Estate Planning ance and/or care. your next step. It is important to Over the years, I followed understand what your relatives the philosophy that if I needed want you to know, and what they Retirement Planning to review my financial items or don’t. If you are the executor/ permanent documents, I knew executrix, it is advisable to under- that my mom and dad also stand the estate situation along Tax Planning needed to review theirs. Discus- with any undocumented wishes. sions with elderly relatives always should begin sooner rather than Forgotten tasks Business Succession later. It is much easier to talk An often overlooked task is the about life-changing decisions review of the Medicare Part D Planning when there is no pressure to do so. option for prescription drugs. These plans change annually, and as What documents to consider a result, the options must be The first step to begin the reviewed annually. The program process is to gather copies of all at www.medicare.gov allows you permanent documents. You to maintain and save a list of should gather: medications, and review and choose Whether it’s retiring in comfort, educating your children or grandchildren the most suitable plan. Adding ■ Wills and trusts this decision to the energy choice or helping your loved ones, being able to live those values and fulfill your ■ Powers of attorney decisions, the elderly are justified dreams lies in setting goals and carefully planning a course of action. ■ Advance directives in feeling overwhelmed. Call 216.241.3272 to talk to a Meaden & Moore professional about ■ Living will Although deathbed planning can protecting what you value. be done, do you want to use your ■ Durable power of attorney final moments with your loved ones for health care to address financial questions? ■ ■ Insurance policies ■ Basis of any assets they may Cindy Kula, CPA/PFS, CFP, is director of tax services and chairperson of the have inherited financial planning group, Walthall, ■ A list of all advisers and Drake & Wallace LLP CPAs. Visit meadenmoore.com phone numbers www.walthall.com/news for more ■ A list of all assets and liabilities information and upcoming seminars. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--48-NAT-CCI-CL_-- 11/9/2010 3:54 PM Page 1

S-18 November 15-21, 2010 ESTATE PLANNING Advertisement

OHIO and FLORIDA ESTATE PLANNING and PROBATE International estate planning

Nancy H. Canary, Esq. requires special considerations

CLEVELAND, OH - P: 216/226/7466 F: 216/226/7426 n today’s international countries, in most cases a remove and replace the trustee business community, jurisdiction on the should the need arise. PALM BEACH, FL - P: 561/833/5900 F: 561/833/5951 foreign business Organisation for Eco- The protector could be a senior owners and execu- nomic Co-Operation and family member, a family adviser E-mail: [email protected] Itives often diversify their Development’s “white or a close family friend who business activities and list”— those countries knows the family members and investments globally. that have substantially would be expected to act in the These individuals implemented the inter- family’s best interests. should have a compre- JEFFREY national standard for the Another approach is to establish hensive personal estate LEVIN exchange of information a “family council,” which could GIVING. plan for their worldwide among tax authorities — function as a collective protector. assets. An overall plan would, at is preferred. Finally, in appropriate situations Meet Barbara Bellin Janovitz. the appropriate time, control the The selection of a knowledge- and jurisdictions, the family could In addition to being the Chair transfer of those assets to family able and experienced corporate establish a private trust company, of the Estate Planning Group members or charities with mini- fiduciary to administer the estate controlled by the family, to serve mal, if any, transfer tax costs, plan is also crucial. as the corporate trustee. at Reminger, Barbara also gives depending on the jurisdictions Customization of a discre- The formation, funding and freely of her time on behalf of involved. tionary foreign trust can be administration of these foreign vital causes in our community Among the tools frequently accomplished in several ways. discretionary entities can be like the Cleveland Clinic Taussig used to accomplish estate- Depending on the controlling tax complicated and involve the Cancer Institute, the Golden Age planning goals are foreign discre- laws, one or more beneficiaries commercial and tax laws and Centers of Greater Cleveland tionary trusts and foundations. could be given a general, limited treaties of several countries. Expe- and the Different Needz Barbara Bellin Janovitz From a U.S. tax standpoint, these or special power of appointment rienced international legal and Foundation. Barbara’s talents 216.430.2178 entities are often viewed as over some or all of the trust tax counsel should be consulted and spirit benefit her clients and [email protected] potentially abusive and are not income and corpus. in advance to assist with the our community every day. favored by the IRS. Such a power would allow ben- implementation of a comprehen- For non-U.S. citizens and resi- eficiaries to exercise a significant sive plan with the least amount dents, they can be “customized” for degree of control over the trust of tax and transfer costs. each particular client and family independent of the authority Finally, the international estate situation and, more importantly, exercised by the trustee. In some plan needs to be reviewed period- permit significant flexibility in cases, especially where a U.S. citi- ically and, where necessary, their administration. In this case, zen or resident could be a current revised to address changes in the the selection of the appropriate or future beneficiary, such broad laws of the relevant jurisdictions, Results. Period. corporate fiduciary and the juris- powers may not be advisable and the composition of the family www.reminger.com diction for the foreign entity is limitations should be considered. and the countries of their resi- extremely important. In those cases, a trust protector dence and domicile. ■ Today, with increased interna- could be designated to provide tional emphasis on financial oversight of and guidance for the Jeffrey S. Levin is a partner with Squire, transparency and the exchange trustee. In addition, the protector Sanders & Dempsey LLP Contact him at of tax information between could be given the authority to 212-872-9840.

FINE ART, COLLECTIBLES AND THE FEDERAL ESTATE TAX Safeguard against tax implications

ollectors of fine art and other collectibles should ■ Fakes in your collection will be OUR INDEPENDENCE prepare for the return of Art and collectibles assumed to be authentic and will be the federal estate tax by may now comprise valued as such by most appraisers. IS YOUR PEACE OF MIND Cobtaining a current appraisal of a much larger portion their collections. of your taxable ■ If the title and ownership of the :HDUH*OHQPHGH³ZH·UHVWURQJÀQDQFLDOO\VRXQGDQG Premier quality fine art and estate. work is in question, the item has no SURXGO\LQGHSHQGHQW$QGZHLQWHQGWRVWD\WKDWZD\ collectibles not only have main- value for estate or tax purposes. tained their value, but many may %HLQJSULYDWHO\RZQHGSODFHVXVLQDSRVLWLRQRIVWUHQJWK have increased significantly during 8QOLNH SXEOLFO\ KHOG FRPSDQLHV ZH DUH QRW GULYHQ WR these economically troubled times. Fakes in your collection will be a public market. Select an appraiser FKDVHVKRUWWHUPSURÀWV,QVWHDGLQGHSHQGHQFHJLYHVXVD As a result, art and collectibles may assumed to be authentic and will who is an expert in the area of VHFXUHORQJWHUPRXWORRN2XUDFKLHYHPHQWLVPHDVXUHG comprise a much larger portion of be valued as such by most appraisers. prior theft, stolen property, own- your taxable estate. VROHO\E\KRZZHPDQDJHZHDOWKIURPRQHJHQHUDWLRQWR As fakes, they may be worth 10% ership rights, and performs due The time is right to obtain a or less of the value of the authentic diligence in this field. WKHQH[W current fair market value appraisal work. You will have paid federal To assure the highest quality of your collection and to schedule )RXQGHG DV D WUXVW FRPSDQ\ PRUH WKDQ  \HDUV DJR estate tax on a “phantom value.” professional appraisal, and to a meeting with your estate plan- Most appraisers are not able to avoid any personal liability from ZH·YHJXLGHGIDPLOLHVIDPLO\RIÀFHVDQGHQGRZPHQWV ners to review your plan. Signifi- obtain proper authentication. the appraiser selection process, DQG IRXQGDWLRQV ZLWK WLPHWHVWHG DGYLFH DQG cant changes may be essential to When such items are subsequently choose only an IRS-qualified VRSKLVWLFDWHGLQYHVWPHQWPDQDJHPHQW7RGD\ZHKDYH maximize estate tax savings and offered for sale or donation and appraiser who is a certified member PRUH WKDQ  ELOOLRQ LQ DVVHWV XQGHU PDQDJHPHQW IRU meet personal objectives. authentication will be required, the of the American Society of FOLHQWVDFURVVWKHFRXQWU\DQGDEURDG In a recent appraisal update we work will be found to be fake and Appraisers (ASA), Appraisers Asso- performed to evaluate a 5-year-old of little or no value. ciation of America (AAA) and 7R ZRUN ZLWK D SDUWQHU GHGLFDWHG WR LQVSLULQJ WUXVW ³ appraisal, we discovered that a pair Likewise, collectibles may have International Society of Appraisers FRPHWR*OHQPHGH of Art Deco American bronze been stolen in the past. That (ISA). Verify that the appraiser sculptures had increased in value means that the collector has “hot selected carries at least $1 million from $85,000 to $850,000 each property” to which he or she does in Errors and Omissions insur- over the five-year period. In light not have any legal rights. ance, which is your backstop in of the possibility of such signifi- If the collector’s title and own- the event of a serious appraisal cant increases in value, a prompt ership of the work is in question, valuation error. ■ appraisal update is essential. the item has no value for estate or An additional reason for sched- tax purposes. If the issue of prior James Corcoran’s appraisals are certified uling an appraisal now is to obtain theft is not addressed by the by AAA, ASA and ISA. For over 30 years *OHQPHGH·VVHUYLFHVDUHEHVWVXLWHGIRUWKRVHZLWKPLOOLRQRUPRUHWRLQYHVW authentication of high value items. appraiser, the appraisal will mis- his firm, Corcoran Appraisal Group, has 3OHDVHFDOO/LQGD2OHMNRIRUDSHUVRQDOFRQYHUVDWLRQ In my experience, most major lead the collector and result in maintained substantial Errors and Omis- __OLQGDROHMNR#JOHQPHGHFRP collections contain one or more potentially serious economic harm sions insurance coverage with St. Paul items that are fake. when the work finally surfaces in Insurance Company. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--49-NAT-CCI-CL_-- 11/10/2010 10:03 AM Page 1

Advertisement ESTATE PLANNING November 15-21, 2010 S-19 INSURANCE PLANS Split-dollar plans can be costly

plit-dollar life insurance the new rules make the cash given that few plans ever consid- plans had frequently been value fully taxable as ordinary ered repayment, and poor policy used to fund estate tax income. Furthermore, if the policy performance has even impacted The TOLI Group’s sole focus is the creation of the greatest possible benefit for trust liquidity until the IRS is held in a trust, it may also be plans that did anticipate repay- grantors and beneficiaries, while reducing risk and providing fiduciary prudence for Sissued new rules in 2002. Many considered a taxable gift. ment or “rollout.” Sometimes a both professional and non-professional trustees. We have developed a unique pro- people still have not addressed One exit strategy is to change Grantor Retained Annuity Trust cess that attempts to ensure, on an annual basis that the assests being protected in the trust are well managed and on track to deliver their intended purpose. these tax implications, and this from the EBC approach to a can be used to interject cash into could have detrimental effects for “loan regime” and instead pay an ILIT, and this then can be themselves and their families. annual interest costs, which are used to repay the company. Most of these plans created a presently very low. This would Usually life insurance is an sharing of the costs and benefits potentially remove the taint of integral part of the estate plan. between a business owner’s future taxation upon plan termi- Therefore, a proper analysis of company and his or her insur- nation. If ongoing premiums are the split-dollar agreement, the ance trust (ILIT). Under the new still due, you can continue loaning life insurance policy and the rules, participants may be able to the premium, which also will overall wealth transfer plan is continue using the low economic increase annual loan interest costs. essential to developing an appro- benefit cost (EBC) to measure the Alternatively, you can freeze the priate split-dollar exit strategy. ■ benefit, but as one gets older loan and fund future premiums these costs can become astro- with third-party premium financing Larry Rothstein, CLU, is a partner with nomical. If this plan is eventually or an enhanced gifting strategy. Insurance Management Consultants, terminated by repaying all premium Funding the repayment to the LLC. Contact him at 440-801-1800 or advances back to the company, company may also be a challenge [email protected].

Insurance is a critical GET DAILY NEWS ALERTS FROM CRAIN’S! piece of the asset plan Register for free e-mail alerts and receive: ■ The Morning Roundup: A verlooking out” covers select collection of the day’s business insurance assets employees. Business news from Ohio’s daily papers may be like overhead coverage pays driving at night for ongoing non-owner ■ Breaking news alerts: When Owithout headlights. Swallow costs. Buy/sell funding major news happens, you’ll know pays a benefit agreed to hard, grip the wheel tight, ■ Daily headlines: A collection of between partners when and hope there isn’t a Crain’s-produced news and blogs sharp curve in the road. one becomes disabled. ■ The risk management HOWARD ■ Life insurance can e!Cleveland: A guide to arts portion of your portfolio SLATER be a portfolio diversifier and leisure in Northeast Ohio is arguably the critical unlike any other. Appli- SIGN UP NOW AT: Securities offered through ValMark Securities, Inc. Member FINRA, SIPC. 130 Springside Drive, Suite 300, Akron, cations are similar to disability OH 44333 800.765.5201. Investment Advisory Services offered through ValMark Advisers, Inc., a SEC-registered piece of a balanced estate plan. investment advisor. The TOLI Group is a separate entity from ValMark Securities, Inc. and ValMark Advisers, Inc. Understanding the characteristics coverage and then some. Its most CrainsCleveland.com/register of these assets and how to utilize important characteristic is terrific them can put you in a position to leverage. One dollar in premium maximize your estate. Here are some buys multiple times in coverage. insurance products to consider: A life insurance policy with a ■ Disability coverage protects guaranteed death benefit is perfect your ability to generate income. for gifting. Life insurance can be Individuals can purchase a disability used to replace what will be lost Taft celebrates its 125th 2010 policy with the highest level of in taxes and long-term care costs. coverage. These individual poli- Purchasing a policy at a younger cies can offer flexibility such as age can ensure future insurability Advent of personal computing 1974 increasing future coverage with- and secure credit. Insurance guar- out medical underwriting and antees are only as good as the may have tax-free benefits. Pur- paying ability of the carrier, so Cleveland Cavaliers enter the NBA 1970 chasing an individual disability informed choices mean smart policy prior to securing employer- diversification and wealth transfer. offered group coverage is wise be- ■ Coming to grips with mortal- Astronauts walk on the moon 1969 cause of coordination of coverage ity may be an emotional hurdle. and the ability to maximize bene- Long-term care (LTC) insurance Mack Swigert authors Taft-Hartley Labor Act 1947 fits. Business owners can choose protects against rising costs that many applications. Key person accompany our last years of life, coverage protects vital employees potentially preserving a sizable Robert A. Taft elected to U.S. Senate 1939 and can be offered as part of a portion of your estate. Traditional retention package. Group “carve See INSURANCE Page S-20 Elliott Ness becomes Safety Director of Cleveland 1935 CORCORAN Firm is founded 1885 Appraisal Group Celebrating 125 Years of Innovation and Leadership. The Personal Property Appraisal Experts Grounded in experience while focused on the future, Taft is proud to have served our clients and • Insurance • Estate/Donation • Sales Consultations the communities where we live and work through the many milestones that have shaped us all over the years. Find out how our unique perspective, James Corcoran, JD, AAA, ASA, ISA collaborative style and 125 years of serving leading Celebrating 125 Years Cleveland’s Only Certified Appraisers for over 35 years companies in all areas of business has given us Northeast Ohio’s only fully IRS Qualified Appraisers something to celebrate. Taft Stettinius & Hollister LLP for Donation Appraisals of Fine Art, Antiques, etc. www.taftlaw.com

216-767-0770 ÓääÊ*ÕLˆVÊ-µÕ>Ài]Ê-ՈÌiÊÎxää]Ê iÛi>˜`]Ê"Ê{{££{‡ÓÎäÓÊUÊ*\ʭӣȮÊÓ{£‡ÓnÎn 12610 Larchmere Blvd. • Cleveland, Ohio 44120 Business and Finance U Litigation U Labor and Employment U Business Restructuring, Bankruptcy and Creditor Rights www.corcoranagi.com • [email protected] i>Ì Ê>˜`ʈviÊ-Vˆi˜ViÃÊUʘÌiiVÌÕ>Ê*Àœ«iÀÌÞÊU Tax U Private Client U Environmental Law U Real Estate Crain’s Cleveland Business Custom Publishing 20101115-NEWS--50-NAT-CCI-CL_-- 11/12/2010 11:40 AM Page 1

S-20 November 15-21, 2010 ESTATE PLANNING Advertisement

give. Any gift in any format is al- the legacy intended for their family ■ Tax implications. Titling of DONOR ways appreciated and always need- TITLING may be inadvertently subject to assets can affect which beneficia- ed by a great number of organiza- federal estate tax, with up to 55% ries bear the tax burden when you Continued from Page S-9 tions. However, if you are looking Continued from Page S-7 potentially going to the government. are gone. Discuss with your estate Charitable giving can be quite to be more strategic, maximize to costly and unnecessary litigation. ■ Old documents. Our vault is planning attorney the use of a tax personal. A donor-advised fund your benefits and create a legacy, ■ Estate tax. Beginning Jan. 1, filled with documents, many of apportionment clause so that the enables you to select recognition donor-advised funds may be 2011, each individual will have a which are old insurance trusts that burden of tax payments is directed or privacy as desired, based upon worth exploring. ■ $1 million exemption from the have never been revoked. A client where you want it. ■ the needs of your family. federal estate tax, making the titling may create new documents but Not everyone may have assets Laura Malone is director of gift planning of property even more important. fail to revoke old ones, leaving Anne Carnahan is a vice president and other than cash to give, and there with the American Endowment Founda- For higher net worth couples, each policy proceeds paying to the old senior trust adviser with PNC Wealth always will be families that are tion, an IRS-recognized, 501(c)(3) pub- spouse should have sufficient assets plan. It can result in a trust funded Management. Contact her at 216-222- going to feel more comfortable lic charity and independent sponsor of in his or her own name to fully with insurance proceeds that 2894. Nicole Bornhorst is a vice president gifting with cash they have on donor advised funds. Contact her at 877- utilize each exemption. If all assets no longer pay in the manner and senior wealth planner for PNC Wealth hand at the time they are ready to 599-8903 or visit www.aefonline.org. are in joint and survivorship form, intended. Management. Contact her at 216-222-9038.

documents, a probate court will are not subject to gift tax, and can CONGRESS select the guardian. STICKER be made in addition to any annual INSURANCE ■ Protecting inheritances from exclusion gift without using any of Continued from Page S-4 certain creditors and creditors of Continued from Page S-16 the donor’s $1 million gift tax life- Continued from Page S-19 issues such as: beneficiaries (including divorcing UNIFORM TRANSFERS TO time credit. This option can be ad- LTC insurance can be purchased by ■ Avoiding the publicity, time spouses, in-laws and judgment MINORS ACCOUNT: With this vantageous for someone trying to an individual, business partnership and cost otherwise engendered by creditors). account, the minor is the deemed reduce the size of their taxable estate. or employer-paid contributory the need for a probate court to ■ Allowing for the management owner and the custodian controls Other funding methods include arrangement. Policies are generally become involved in one’s affairs of assets for the benefit of benefi- the property until the minor reaches prepaid tuition plans, and tuition structured as reimbursement or upon incapacity or death. (Note: ciaries beyond their 21st birthday. the legal age. Distributions must be and gift annuities. With all funding indemnification type. You may Contrary to popular belief, a spouse Without the requisite documents, made for the minor’s benefit, methods, consider the effect on not have the asset base to self- cannot automatically handle the most inheritances must be distrib- which includes education. financial aid availability. ■ insure. Various hybrid products affairs of an incapacitated spouse uted in full by the time a benefi- DIRECT PAYMENTS: Another offer solutions such as life insur- unless certain estate plan docu- ciary turns 21. ■ funding route is direct payment to Cristin R. Snodgrass is an attorney in ance contracts with long-term care ments have been executed.) the educational institution. Calfee, Halter & Griswold LLP’s Estate provisions. Review the policy with ■ Selecting the person who will Rennie Rutman is counsel at Tucker Ellis This can be done by someone and Succession Planning practice. your agent or adviser to under- act as the guardian of minor chil- & West LLP. Contact her at 216-696- other than the parents. Direct pay- Contact her at 216-622-8503 or stand benefits and limitations. dren. Without proper estate plan 4749. ments, for tuition and fees only, [email protected]. Various hybrid contracts offer solutions such as life insurance STICKER CHARITABLE contracts. Continued from Page S-10 works even if your stocks have lost ■ value but are still worth more Changes to health-care than when you first purchased insurance means choices are critical. them. You can sell the devalued Companies may now offer stocks and donate the proceeds to- consumer-driven health plans ward a CGA, claiming a loss on combining high-deductible health your taxes while receiving a chari- insurance plans with tax-advan- table deduction and gaining in- taged health savings accounts come for life. (HSAs). Tax-advantaged HSAs Ask your favorite charitable allow you to deposit tax-deductible organization to discuss options funds into an account to pay that may be right for you. ■ for current health care needs and save for future bills. It’s James R. Hickey, CFRE, CAP, is gift like an IRA account for medical planning director for the OPRS Founda- expenses. tion. Contact him at 440-942-4342, Put away the max amount, use x1506. cash flow to pay medical bills, and the HSA grows tax-free to cover medical costs in retirement. In an era of diminished consumer control, this is appealing if you HOSPICE have time to manage it. If eligible for Medicare, don’t procrastinate. Continued from Page S-9 Using resources like pharmacies, difficult “what if” conversations. medical providers and AARP help ETHICAL WILL: Many ethical make appropriate choices. wills are simple letters; some are ■ Property/casualty insurance video journals; others are gathered protects material assets. Smart as scrapbook-style assemblages. choices could save hundreds a Each is a journey through a life- year, thousands over a lifetime. time —records of love, wishes and Applications are diverse, ranging gratitude. We all have stories that from car, home and renters to should become part of a collective collectibles, art and jewelry. Don’t memory. Your ethical will is an be a victim of the vexing claims irreplaceable inheritance. process. Inventory your valuables From the child putting his first using photos, video and indepen- dollar into a savings account to dent appraisals. the newlyweds preparing to buy Workers compensation, busi- their first house, our society places ness income/interruption losses, great value in planning for the fu- excess liability and identity theft ture. But few of us feel comfort- losses are other asset protection able discussing how we wish to be coverages. Always check the financial remembered or what we hope for strength of the carrier before pur- in that final human experience, chasing. Choose wisely, rest easy. ■ our dying. Each of us has a unique legacy to share. With good planning, we Howard Slater is a founding partner and can pass it on. ■ financial planner of Cedar Brook Finan- cial Partners, LLC. Securities offered David A. Simpson, LSW, is CEO of through Securities America, Inc. For more Hospice of the Western Reserve. information, contact Laura Sheridan at Contact him at 216-383-2222 or visit 216-548-6780 or e-mail laura www.hospicewr.org/legacy. @vivalabrand.com. Crain’s Cleveland Business Custom Publishing 20101115-NEWS--51-NAT-CCI-CL_-- 11/12/2010 2:57 PM Page 1

NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 51

in early 2009. She was working as a Why you might be interested:If Adelbert Road, Cleveland E!CLEVELAND freelance journalist in Iran when you’re a musical adventurer with When: Thursday, Nov. 18, through she was arrested and charged with global tastes. Pink Martini, a delight- Sunday, Nov. 21 Every Thursday, Crain’s sends to Apollo’s Fire “set sparks flying with espionage. Ms. Saberi denied the ful 12-piece instrumental group from Why you might be interested: If more than 20,000 readers an arts and sparkling chaconnes, as well as charges but was sentenced to an Portland, Ore., “enthusiastically you want to brush up on your Greek leisure e-mail called e!Cleveland. Vivaldi’s fiery Concerto for Four eight-year prison term. Eventually, performs every genre of music from mythology. The theater department The e-mail highlights at least 10 Violins and the wild La Folia (“Mad- her sentence was reduced and Ms. jazz and Latino rhythms, Japanese at Case Western Reserve University events worth your time outside ness”).” This trans-Atlantic collabo- Saberi was released in May 2009. In pop, disco, French cabaret and tackles the tale of Orpheus and his work. We’re fortunate in Northeast ration heads to Europe following her book, “Between Two Worlds: movie themes to old-school classic,” descent to Hades to rescue his love Ohio to have a vibrant these Northeast Ohio My Life and Captivity in Iran,” Ms. PlayhouseSquare says. If Wikipedia Eurydice, in a work re-imagined by arts community, and performances. Saberi tells the story of her arrest, is to be trusted, Pink Martini’s highly regarded playwright Sarah each edition of the On the web: www captivity and release, and shares Thomas Lauderdale has described Ruhl. This modern version of the e-mail features a .apollosfire.org the struggles and courage of her the band’s sound as “music of the ancient Greek fable is told from the mix of local music, cellmates who inspired her along world without being world music. If perspective of Eurydice herself theater, dance, film and other activities. Scary story the way. the United Nations had a house “and centers on what she learns of To sign up for this and all our Event: Speech by author Roxana On the web: www.NotreDame band in 1962, hopefully Pink Martini love, loss and the power of memory e-mails, visit www.CrainsCleveland Saberi College.edu would be that band.” during her time in the Under- .com and click the “Register for Venue: Abrahamic Center, Notre On the web: www.Playhouse world,” Case says. In Ms. Ruhl’s Crain’s alerts” icon at the top left of Dame College, South Euclid Square.org notes for the play, she says Eurydice the home page. It’s free. When: Wednesday, Nov. 17, at 7 p.m. Toast of the town and Orpheus “should be played as If you have events you’d like us to Why you might be interested: If Event: Performance by Pink Martini though they are a little too young consider for inclusion in future you’re riveted by tales of injustice. Venue: Palace Theater, Playhouse- Erudite theater and a little too in love.” editions of the e-mail, send informa- Ms. Saberi, an Iranian-American, Square Event: “Eurydice” On the web: http://theater.case tion to managing editor Scott Suttell spent 100 days in an Iranian jail cell When: Thursday, Nov. 18, at 7:30 p.m. Venue: Eldred Theater, 2070 .edu/season.php at [email protected]. Here’s a taste of what makes it into the e-mail each week: State of the Hart Event: “Frederick Hart: A Collec- WWW.DOLLARBANKBIZ.COM tion of Important Works” Venue: Contessa Gallery, , 24667 Cedar Road, Lyndhurst When: Now through Dec. 31 Why you might be interested: If you like your art dramatic. Officials “ at Contessa say Mr. Hart, who lived from 1943 to 1999, created sculpture that is “timeless, important and enduring. It strives to restore whole- IT’S NOT THE ness and beauty of authentic human- ness and bring emotional and moral health, dignity and integrity to the human form and the mystery of the human spirit.” Sweeping terms, but not undeserved for an artist whose work is both traditional in representing human figures but radical in its sensuality and innovating in its SIZE OF THE materials. On the web: www.ContessaGallery .com The fur will fly Event: “Extreme Mammals” Venue: Cleveland Museum of Natural History BANK, IT’S THE When: Now through April 17, 2011 Why you might be interested: If you can appreciate some evolutionary development that’s way outside the box. “Extreme Mammals: The Biggest, Smallest and Most Amazing Mammals of All Time,” looks at some strange cases — a mammal so small that it QUALITY OF THE could stand on the tip of a pencil eraser, an armadillo with horns and a whale with legs among them. Most of these creatures are so unfamiliar to us that there are no common names for them. Their bizarre characteris- tics “provide a fascinating entrée into the world of adaptations, evolu- tion and phylogeny over millions of SOLUTION.” years,” the museum says. On the web: www.cmnh.org Ever feel like your big bank is thinking small about your business? If you want someone who’s willing to work Get ready for the road harder to make things happen, talk to Dollar Bank. As a mutual bank, we’re independent like you. No one knows Event: “Fire and Folly” better that a growing business requires a personal commitment to results. READY FOR A BANK THAT TAKES Venue: First United Methodist Church, Akron, and St. Paul’s Epis- YOU SERIOUSLY? LET’S TALK @ 216.736.8938 copal Church, Cleveland Heights When: Tuesday, Nov. 16, at 7:30 p.m. (Akron); Thursday, Nov. 18, at 7:30 p.m., and Friday, Nov. 19, at 8 CORPORATE BANKING Q BUSINESS BANKING Q TREASURY MANAGEMENT Q COMMERCIAL REAL ESTATE Q p.m. (Cleveland Heights) Why you might be interested: If you want to check out a Northeast Ohio export. Soprano Sophie Dane- man and Apollo’s Fire music direc- tor Jeannette Sorrell “bring feminine passion to works inspired by the ancient tales of love and loss,” according to the baroque orchestra. Ms. Daneman “evokes the heroines of antiquity in arias by Handel and Equal Housing Lender. Member FDIC. Copyright © 2010, Dollar Bank, Federal Savings Bank. BUS716_10 Rameau,” while Ms. Sorrell and 20101115-NEWS--52-NAT-CCI-CL_-- 11/12/2010 11:47 AM Page 1

52 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010

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NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 53

“The Internet’s been a wonderful development for everybody, but Banks: Lenders broaden borrower reach particularly small businesses,” Mr. Keating said. “It shouldn’t surprise us that it’s (being used for) finding continued from PAGE 1 in securing loans, the former banking MONEY STILL IS CHANGING HANDS credit. They’re finding their customers Hopkins International Airport, while professional logged online. there, they’re finding their suppliers Mr. Wojtowicz continued the hunt Through a Google search, Mr. In what may seem an odd twist, last year. KeyBank estimated an there — ‘OK, let me see, where I can for money. Graves discovered a site, Lending Internet sites such as BoeFly and increase of 220% over the same get the best deal on credit?’ This time around, the consultant Club, and 10 days after he applied for the Ohio Business Lending Clear- period — a jump that is largely the “Next year,” Mr. Keating predicted, took a different tack. He placed the a loan, he’d received an infusion of inghouse that connect banks and result of how much activity had “this will be old news.” request for a loan before banks hun- $4,750 into his bank account. Mr. borrowers support and contradict slowed in 2009 when “everybody was dreds of miles away — without trav- Graves acknowledged the 16% interest the perception that banks aren’t hunkered down in survival mode,” Already a convert eling a mile. In mid-October, Mr. rate is about what he’d pay on a lending to small businesses. said Matthew R. Wyner, senior vice The Subway shop owner, Mr. Lukasik closed on a $300,000 loan credit card, but noted that credit On the one hand, there are bor- president and business banking Lukasik, and his wife Debra have with a Chicago bank in a deal struck card rates can fluctuate. The new rowers such as local Subway fran- executive for Northeast Ohio. found more than one purpose on BoeFly, a new Internet site. snowplow he bought probably chise owner Joe Lukasik who say “We’re definitely seeing people get for the loan they secured with First Mr. Wojtowicz has dealt in small increased the workload capacity of they turned to an Internet matchmaker off the sidelines,” Mr. Wyner said, Capital Bank in Chicago, a division business lending for more than 30 his four-man company 25% to 30%, because they’d been denied by local though not to pre-recession levels. of First Colorado National Bank. years and said it never has been as he said. banks. On the other hand, the pres- The Federal Reserve Board’s They’ve paid bills for the build-out tough or time-consuming to obtain a Mr. Graves is among a rising number ence of banks that are seeking most recent Senior Loan Officer and equipment for their newest business loan as in recent years. That of business people using the Internet borrowers online proves some are Opinion Survey on Bank Lending location, which opened in November situation makes it necessary to shop to secure loans, according to activity lending. Practices in July was the first to 2009, and also reconsolidated their loans to as large an audience as pos- reported by such matchmaking sites. According to bank spokespeople, show an easing of standards on business debt, decreasing six monthly sible, and the Internet, he said, is an Launched last March, BoeFly has Huntington Bank has increased its small business loans since late 2006 payments to one. The result: lower increasingly useful tool for doing so. had posted on its site $592 million business lending in the Cleveland — “a modest unwinding of the wide- interest rates that have freed up The state of Ohio apparently in financing requests, including market by 30% in the first three spread tightening that occurred over $6,000 to $8,000 in cash flow a agrees. requests totaling more than $20 quarters of 2010 over the like period the past few years,” it read. month, Mr. Lukasik said. According to James Raussen, million by borrowers and loan brokers Mr. Lukasik said he and his wife director of insurance and financial in Ohio, said Mike Rozman, execu- always are looking for new franchise development for the state Depart- tive vice president of BoeFly. The site massively inefficient,” he said. records pulled multiple times, opportunities. The next time they ment of Development, Ohio last does not track actual loans made. Lenders employed an “army of which can hurt credit scores. seek a business loan, he noted without month became the first state to offer Internet matchmaking “is brand development officers in order to To Raymond Keating, chief econ- hesitation, they’ll log online to find one. an online match service for lenders new in business lending, but really, find borrowers,” Mr. Rozman said, omist for the Small Business and “Unfortunately, sometimes your and borrowers. The program launched we’re picking an idea that’s played while borrowers sometimes knocked Entrepreneurship Council, which is local banks don’t understand your Oct. 7. across other industries very well,” on many doors without obtaining based outside Washington, D.C., business,” Mr. Lukasik said. “You Though the Internet is now Mr. Rozman noted, citing online the money they need. All the while, the use of the Internet is a natural have more options going through regarded as a nontraditional channel dating sites and personal mortgage potential borrowers had their credit progression. the Internet, by far.” ■ for securing business loans, Mr. sites, such as LendingTree. Raussen, Mr. Wojtowicz and others BoeFly focuses exclusively on predict it won’t be for long. business lending. It allows borrow- ‘A new era’ ers to post requests for financing for a one-time, $99 fee, Mr. Rozman Ohio’s free web site is called the said. BoeFly then uses lender prefer- Ohio Business Lending Clearing- ences to match requests with house, and already — just five weeks lenders, which include banks and after its launch — the site has non-bank financiers. recorded nearly 2,400 hits, Mr. Lending Club, which began in Raussen said. Of those who visited May 2007, and another site called the site, more than 400 potential Prosper are different in that they borrowers created profiles for connect business owners with indi- lenders to read, and of those, 88 were vidual investors, not institutions. selected by lenders for full review of Lending Club said 945 business credit scores, tax returns and collat- loans totaling nearly $11.3 million eral, among other things. had been arranged through the site No loans have yet been made as of Nov. 5. Of those, 26 loans totaling through the clearinghouse, Mr. nearly $400,000 were made to Raussen said. However, the site has borrowers in Ohio — 10 of them this enlisted some larger lenders, including year, Lending Club spokesman Nate KeyBank, Fifth Third and Huntington, Purpura said. and Mr. Raussen said some credit Prosper reported its site since unions also have expressed interest. 2007 has facilitated $20 million in Stories of small business credit small business loans, including struggles were the genesis of the $557,000 lent to Ohio borrowers. state’s new web site, Mr. Raussen said, noting the state has received Old news? Not yet, but soon numerous letters from business Though he said he can’t cite data owners who’ve faced lending chal- that demonstrate it, William Dennis, lenges. senior research fellow with the “This is what’s so exciting about National Federation of Independent this: It allows a small business a larger Business Research Foundation, said audience quickly and efficiently, and he’s heard anecdotally and read in it doesn’t take away from the day-to- academic literature that more busi- day operations of trying to grow and nesses are using the Internet to find expand their business,” he said. the money they need. Mr. Raussen said lenders also like An NFIB Research Foundation it because it’s simple. survey of more than 750 employers “They’re getting an opportunity to revealed in 2006 that 15% of busi- meet new businesses that normally ness owners had applied for credit they may not have exposure to,” Mr. online, but the data offer only a Raussen said. snapshot and the question hasn’t “We got to make it easier for busi- been asked since, Mr. Dennis said. nesses,” he said. “That’s the bottom The growth of online lending line. This is a new era.” marketplaces poses some issues, Mr. Matchmaker, matchmaker Dennis said. For one, long- distance lending limits a bank’s ability Dionte Graves didn’t bother to assess the quality of certain collat- applying to local banks when he eral, such as real estate. He and needed money last fall for new others stressed the need for small snowplow equipment to expand his businesses and lenders to do their Beachwood business, AMG Manage- due diligence. ment Solutions LLC, which main- Many agree, though, that the use tains foreclosed properties. of the Internet will go mainstream. Knowing he needed only a couple Mr. Rozman of BoeFly said he thousand dollars and wanting to believes the activity his site is seeing avoid both the documentation a is a reaction not only to the lending bank would require and the troubles crunch but also to a systemic problem. he’d heard others were experiencing “The old way of doing things was 20101115-NEWS--54-NAT-CCI-CL_-- 11/12/2010 2:48 PM Page 1

54 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 15-21, 2010 Orwell: Area’s Amish suffering, too

continued from PAGE 3 tions to shut down in and around is hitting parts of the Orwell economy materials for homebuilders. But the Orwell in recent years, said Jack Scott, that often were insulated from the housing bust has led to layoffs at whose family has run the town’s recessions of the past. the KraftMaid plant, including 145 General Motors dealership since his The Amish in particular have felt announced at the end of last month. grandfather opened it in the 1930s. its pain, because nearly everything Today, KraftMaid employs 450 at There was K.D. Manufacturing — the Amish do — outside of farming its Orwell plant, Mayor Bottoms said. a John Deere supplier — that went for their own needs — revolves That decline is a big factor in the out of business three years ago, taking around construction, said Kevin town’s annual income tax receipts 200 jobs with it. The Champion Mitchell, branch manager for The being lopped down to an expected Steel mill closed a couple years Middlefield Banking Co. in Orwell. $650,000 this year from nearly $1.2 earlier, idling more than 100 workers. Mr. Mitchell said most Amish million in 2008. Mr. Scott also has seen other auto either are carpenters, work in other To make ends meet, Mayor dealers shut down, though that was construction trades, make cabinets Bottoms said the village has cut just many years ago. or run lumber operations, and all about every expense except its “There used to be four car dealers those fields are tied to home police patrols, and even there, officers in town. Now we’re the only one,” building. now must make do without a clerk he said. Many are doing whatever they carpenters and other craftsmen who “They’re going to Pittsburgh, even and handle paperwork themselves. can to keep working, which often used to find work locally, or perhaps Cincinnati. It’s crazy,” Mr. Mitchell But KraftMaid was just the latest Pain for the Amish means traveling great distances to in Cleveland, now must go else- said. in a string of manufacturing opera- This time, though, the downturn job sites, Mr. Mitchell said. Amish where. For non-Amish — known as Yankees in Amish parts — driving the vans that take the Amish to and from their work sites has become a job classification in and of itself as a result of the increased distances they must go, Mr. Mitchell said. While the Amish are more self- sufficient than most people, they still are a huge part of the local economy, and they’re becoming more so as more Amish move to the area and buy land. Mr. Mitchell said half or more of his bank branch’s business is with the Amish, who borrow money for purposes such as new buggies and sawmill equipment. So, when the Amish suffer, so do other local businesses. “We’ve realized the fact that the Amish are hurting more here, too,” China just called said Jim Kule, owner of Valley Feed Mill Inc. in Orwell. Mr. Kule said he often delivers the and you sold them your company Amish their feed and other supplies when they aren’t around to pay for it, and he gives them credit and collects for three yuan and a hot dog. later. But lately, Mr. Kule said he’s had to cut off some of his Amish customers because the amounts outstanding on their accounts were (oops) growing too large. “So many are carpenters or construction workers,” Mr. Kule said. “They’re not working right now, so they owe us a lot of money.” Been there before It’s not that the Amish aren’t the hard-working people most outsiders take them to be. Indeed, Mr. Mitchell said there’s a distinct difference FirstMerit for Better International Services between an Amish borrower and most Yankee borrowers when a loan Our international bankers guide you through transactions, avoid pitfalls goes bad. and maximize your international opportunities. China is just one important example of our global “When the Amish can’t pay, they come to you,” not the other way experience. For 165 years we’ve been increasing the opportunities for our business around, he said. partners in the communities we call home. We may even have a dinner recommendation And no one expects the Amish to stay down — they’ll bounce back in Beijing. Get FirstMerit and get more. faster than most if the housing market comes back, because of their ™ skill levels and work ethic, most in More Bank For Your Business Orwell predict. As for the town itself, it won’t get to the point where it has four car dealerships again, but most in Orwell predict they’ll get through the recession. Mr. Scott said sales of his GM dealership, though still down from 2008, have picked up considerably from last year. He figures his son, Call Chris Pilkington, Manager of Foreign Exchange and International Sales, George, will be the fourth generation to be able to run the dealership. at 614-429-7440. “I don’t know if there will be a fifth, though,” he said. firstmerit.com Mayor Bottoms said Orwell is facing a tough time, but no more than some other places. Its people are resilient and will pull through, he said. “We’re hanging in there,” he said. “We don’t have a choice.” ■ 20101115-NEWS--55-NAT-CCI-CL_-- 11/12/2010 3:38 PM Page 1

NOVEMBER 15-21, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 55 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Police weed out pot Wall Street Reform and Consumer Protec- NOVEMBER 8 - 14 tion Act that became law in July. — Dan ‘grow house’ in Flats Shingler The big story: United Continental Holdings ■ Cleveland police allege that a Inc. CEO Jeff Smisek delivered a message to the building on the 2300 block of Akron, Kent make grade of business community of Cleveland with warmth Scranton Avenue in the Flats and affection for the city, which has had a long served another business purpose affordable college towns relationship as a hub for the pre-merger Conti- besides a new home for a heating ■ Though their football records aren’t nental Airlines. But Mr. Smisek’s underlying and air conditioning business something to gloat about, Kent State message was clear: If the hub here doesn’t make and an old furnace salvage yard University and University of Akron students money, Cleveland won’t be a hub any longer. that Tim West told Crain’s about have one reason to smile: They live in two of Speaking at a Jones Day luncheon, Mr. Smisek in an Oct. 11 story on the future the most affordable college towns in the said several times, “We are committed to Cleveland.” of the Flats. country, according to a recent study. The key for Cleveland, he said, “is to have a level of Cleveland police said in a Coldwell Banker Real Estate, a worldwide business travel so that we can have either con- news release last Friday that real estate firm, reported that Akron and sistent profitability or have that hub’s profitability officers armed with search warrants had ditioning business. — Stan Bullard Kent are two of the top 10 most affordable in a clear line of sight (ahead).” Mr. Smisek removed 1,000 suspected marijuana plants housing markets near colleges, according to added, “Every hub needs to earn its value every day.” and indoor gardening equipment from the Some frank talk about a study of 120 Football Bowl Subdivision 2300 block of Scranton Avenue. That’s the schools. The average home listing in Akron Out with the scalpel: The Cleveland Clinic site of the building Mr. West and brother Dodd-Frank reform act was $139,711, while Kent’s was $153,662, notified employees of plans to eliminate about Todd bought for $110,000 earlier this year. ■ Well, someone, at least, is reading those according to the study. 200 positions across the entire health system. Cleveland and Westlake police, who par- laws that Washington is passing. Businesses Those prices are a far cry from the most The move comes as the Clinic looks to consoli- ticipated in the investigation, also searched have some new federal rules to contend expensive markets, the steepest being Palo date more of its services and create “centers of the Westlake homes of the brothers. Both with when it comes to dealing with their Alto, Calif., near Stanford University, where excellence” across the health system. The per- men were arrested Nov. 5, charged with shareholders, and Jeff Morgan, CEO of the the average home listing reaches more than sonnel cuts include both administrative and alleged cultivation of marijuana, and National Investor Relations Institute in $1.3 million. The most affordable market is clinical staff. Clinic spokeswoman Eileen Sheil released Nov. 8 on bond, according to court Washington, D.C., is coming to Cleveland to near Ball State University in Muncie, Ind., said employees who are laid off will have “sub- records. Cleveland police said they plan to explain some of them. where the average listing is $105,115. stantial time” to apply for the several hundred present additional information to the Cuya- Sherwin-Williams Co. is sponsoring Mr. The study also revealed that many stu- jobs currently open at either the Clinic’s main hoga County Grand Jury. Morgan’s visit so he can talk to local investor dents’ parents are buying houses for their campus or its nine regional hospitals. Cleveland police said they also seized relations officials and other executives children while they attend college rather “thousands of dollars” at the alleged “grow about new regulations that affect executive than spending money on rent or dorm fees. Howdy, partner: Squire, Sanders & Dempsey house.” It just goes to prove there is money compensation; the rules include some that And despite the real estate downturn, 73% LLP and Hammonds LLP of the United Kingdom in the Flats. The discovery also may explain give shareholders a larger voice in such of Coldwell Banker’s real estate agents will merge effective Jan. 1. The combined firm why Tim West worried about burglars matters. reported seeing a significant number of will have 1,275 lawyers in 37 offices and 17 coun- hitting the structure when interviewed by Mr. Morgan will be in town this Tuesday, investors buying homes near college tries. Squire Sanders chairman James J. Crain’s about the duo’s planned use of the Nov. 16, and much of his talk will center on campuses and renting them to people in the Maiwurm will be global chief executive and old factory for their Any Heating & Air Con- changes brought on by the Dodd-Frank community. — Timothy Magaw chairman. Peter Crossley, managing partner of Hammonds, will be managing partner for Europe. The combined firm will operate under the Squire Sanders name except in countries where WHAT’S NEW BEST OF THE BLOGS Hammonds already operates. In those markets, it will use the name Squire Sanders Hammond. Excerpts from blog entries file federal employees,” The Post reported. on CrainsCleveland.com. The general public and federal employees Closing the book: The recession and changes will be able to vote on the four top ideas in in the way consumers read and buy books led to a an online poll. The worker who submitted Chapter 11 bankruptcy filing by the Joseph-Beth Dems and the GOP can agree the winning idea will meet with President Group and a plan to close on this: We’re glad it’s over Barack Obama, who then plans to include the bookseller’s 26,000- the winning idea in his proposed fiscal ■ If you felt assaulted by political ads prior square-foot store at Legacy 2012 budget, the newspaper reports. to the election, well, you were. Village in Lyndhurst. Neil Paul Behe, a paralegal specialist for the Media Life magazine last week passed Van Uum, owner of Department of Homeland Security in along data from Nielsen that show a record Cincinnati-based Joseph- Cleveland, suggested the department number of ads aired during Beth, said the bankruptcy “should advertise property October, even more than in filing was caused by the seized by U.S. Customs and COMPANY: Waltco Lift Corp., 2008, a presidential election economic downturn cou- Border Protection online in- year. pled with a move by Tallmadge stead of in newspapers, sav- “Nielsen estimates that 1.48 many buyers to elec- ing the agency both time PRODUCT: Heavy-duty, level-ride million political ads aired tronic books readable and money.” on television last month, on devices. Inventory liqui- HLF liftgate model Mr. Behe said his office has more than the 1.41 million dation sales will begin at the Legacy Village store more than 900 cases of seized Waltco, a designer, manufacturer and that aired in the same month this week and will continue until the store closes in property waiting in storage to marketer of hydraulic liftgates for trucks and two years ago, when John December. be processed and advertised. trailers, says the new HLF liftgate offers a McCain and Barack Obama Voting on Mr. Behe’s idea and the three simpler design from the company’s previous were running for president,” the magazine End of the line: Timken Co. said Michael C. others will be done at www.SaveAward.gov. LPF model and maximizes performance for a reported. Arnold, executive vice president and president variety of truck and trailer uses. Ohioans were subjected to more political of the company’s Bearings and Power Trans- In D.C., Forest City heeds The HLF series also offers “ease of instal- ads than any other state. mission Group, intends to leave Timken at the lation, as well as a lower cost of maintenance Nielsen figures showed that Cleveland lessons of past 30 years end of the year. Chicago-based Ryerson, a pri- and operation, which translates to a higher and Columbus ranked first and second in ■ vately held processor and distributor of Forest City Enterprises Inc.’s big Wash- return on investment,” Waltco says. terms of percentage of total ads that were metals in North America, named Mr. Arnold, 54, ington, D.C., project called The Yards was The company says the HLF model increases political, both exceeding 23%. as its president and CEO effective Jan. 10. Mr. mentioned in a fascinating Slate.com feature lift capacity to 5,000 pounds and offers a Arnold officially will retire from Timken on Dec. on how improvements in urban design are larger standard aluminum platform — 60 31 after more than 31 years with the company. Talk is cheap, but his making cities denser and more vibrant. inches deep by 84 inches wide. A heavier, The feature is adapted from a new book, standard 3/8-inch bed extension offers idea is a money saver Swing for the fences: Radio Systems Corp. “Makeshift Metropolis: Ideas about Cities,” greater strength, Waltco says, and a simpli- ■ of Knoxville, Tenn., the maker of Invisible Fence Cost-cutting — or at least talk of it — is all by Witold Rybczynski. fied parallel arm eliminates the previous model’s brand pet products, bought JGB Distributing the rage in the federal government these In text that accompanies a slideshow, Mr. sliding parallel arm and springs, which makes Inc. of Chesterland, the largest distributor of days, and a Cleveland resident is making a Rybczynski wrote that Forest City’s D.C. pro- installation simpler. those products. Terms weren’t disclosed. Bill major contribution to the discussion. ject “demonstrates what we have learned The new model also boasts grease fittings Miltz, CEO of the 85-employee JGB Distributing, The Washington Post reported that the about urban redevelopment in the last three and maintenance-free bearings at all major will remain in that position as the company White House last week started touting four decades: Density promotes urban vitality; hinge points. becomes part of Radio Systems. JGB provides money-saving ideas proposed by federal mixing residences and offices creates diversi- For information, visit www.Waltco.com. Invisible Fence products and services to more workers. ty; recycling historic buildings … helps to than 105 dealers in 22 states and 11 Canadian “The four ideas, gleaned from about make an authentic sense of place; it’s better to Send information about new products provinces and territories. 18,000 submissions, are part of the second place urban amenities such as shopping, a to managing editor Scott Suttell at annual White House Save Award, a contest marina and a waterside park in close proxim- [email protected]. that seeks cost-cutting ideas from rank-and- ity; and it’s fine to mix different functions.” 20101115-NEWS--56-NAT-CCI-CL_-- 11/12/2010 11:41 AM Page 1

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