20120319-NEWS--1-NAT-CCI-CL_-- 3/16/2012 2:34 PM Page 1

$2.00/MARCH 19 - 25, 2012

INSIDE NorTech to play bigger shale role Interest in converting to natural gas cars grows and flexible electronics. on creating jobs related to advanced Group will prepare potential employees, In this case, however, it’s already energy. As fuel prices have continued to clear that eastern Ohio is about to Though evidence suggests that a rise, Northeast Ohio companies are push area companies to supply industry undergo a major increase in shale drilling bonanza is on the way, the pushing to develop an alternative gas drilling. Oil and gas companies oil and gas companies could end up using natural gas. PAGE 3 By CHUCK SODER boom, a move that represents a are scooping up land, drilling test wells buying parts and services from out- ALSO: [email protected] change of pace for NorTech. and making big statements about of-state companies, Mr. Karpinski ■ Merger activity The organization will continue how much money they’ll spend in said. And many of the new jobs could brisk among In NorTech’s eyes, shale gas pursuing its main focus, which is to Ohio over the next few decades. go to more experienced workers from credit unions counts as advanced energy. help nascent technology industries Even so, NorTech has a role to play, out of state, he said. locally and The economic development group take root in Northeast Ohio. The said vice president Dave Karpinski, NorTech can help solve those nationally. aims to help Northeast Ohio capi- industries to which it gives most of who heads the nonprofit’s Energy problems, he said. The nonprofit PAGE 3 talize on the anticipated shale gas its attention are advanced energy Enterprise initiative, which focuses See SHALE Page 22 PATENTED Kasich eyes APPROACH improved After 26 years, GE engineer’s work force 106 inventions — and counting — continue to impact company training Agencies, businesses By CHUCK SODER [email protected] collaborating better could solve problems n high school, Louis Nerone read a manual detailing how to By JAY MILLER [email protected] build devices using transistors made by the General Electric Co. Brian Sooy, president and creative IIt’s no wonder that he’s now the director of Sooy+Co of Elyria, under- stands better than most business- most prolific inventor at GE Lighting. people about work force development, Dr. Nerone received his 106th since his marketing and design firm has developed communications patent in December, 26 years after programs and websites for some of he began working for the East Lorain County’s economic develop- Cleveland-based division of GE. ment and job creation organizations. So he knows how tough it is for Almost all of his inventions are businesses, government job training designed to help regulate the flow agencies and colleges to make sure that students are learning the skills of electricity through all types of GE that will produce qualified employees light bulbs. for the jobs companies are trying to They can be found in GE light fill. Yet it still surprised him that there bulbs all around the world, but was a government program to help they’re not easy to see, given that him hire an unemployed web designer who only was lacking familiarity with they’re hidden in the base of lamp, a few key software programs his said Dr. Nerone, 61. company used. “The stuff that we work on in So he called the agency that admin- istered the program, The Employment here — you don’t even see it,” he Network, a Lorain County group that said last week from his lab at GE offers the unemployed help with JANET CENTURY job-search skills and helps employers Lighting’s Nela Park campus. GE Lighting engineer Louis Nerone has 106 patents to his name, one of which being an LED driver fill jobs. See PATENTS Page 21 (in his right hand and magnified) used in the light engine in his left hand. See TRAINING Page 20

SPECIAL SECTION 12 7 REAL ESTATE

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MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Merger opportunities grow for credit unions 2010, to 236 from 192. Prior to last COME TOGETHER Tight revenues, burden of regulatory compliance are fueling deals year, mergers were on the descent, falling in 2009 and 2010. The National Credit Union Administration By MICHELLE PARK with the other two continue. some of the small credit unions are Many, including Mr. Laurendeau, compiles data on credit union merger [email protected] All three of the credit unions beginning to feel defeated.” anticipate merger activity to continue activity; the data show a jump in 2011 approached Firefighters Community Many of those turning to mergers to grow. over 2010. (Ohio is in NCUA’s Region 3.) Ben Laurendeau has engaged in in recent months. are doing so because they lack Couple the merger activity with merger talks before, but never three “I can’t remember a time when options for leadership succession and the lack of new Ohio credit unions Year Nation Region 3 times in three months. I’ve ever been having three separate are struggling with unprofitability being chartered — only one has been Mr. Laurendeau, the president conversations all at the same time,” and the heavy cost of regulatory chartered by the state in nearly 20 2011 236 39 and CEO of Firefighters Community Mr. Laurendeau said. “It’s never compliance, industry insiders say. years — and it’s clear their numbers Credit Union in Cleveland, says happened for me.” At the same time, the low interest are falling. 2010 192 56 his institution is considering a trio His institution’s discussions are rate environment and low consumer From 2001 to 2011, the state’s 2009 237 63 of mergers. One was approved in only one indicator of increased demand have pinched revenues. number of credit unions dropped by February by his board and the other merger activity among credit unions Data from the National Credit 204, or more than 35%, to 377, 2008 278 62 institution’s board, and the deal in Ohio and nationwide. Union Administration reveal a 23% according to Callahan & Associates should close by midyear. Discussions Of the trend, he said, “I think increase in mergers in 2011 from See MERGERS Page 12 2007 251 55 THE WEEK IN QUOTES “No one group is FUEL SHIFT poised to do what needs to be done in SEEMS Ohio.” — NorTech vice president NATURAL Dave Karpinski, who leads the nonprofit’s Energy Enterprise initiative. Page One As gasoline prices rise, so does interest in fuel system conversion “As we went into new communities, it By DAN SHINGLER became difficult to [email protected] explain who we were. s the price of gasoline con- tinues to rise and the price of We had to first explain natural gas continues to fall, who we were not.” the argument for converting vehiclesA from one fuel to another is — Rich Frank, CEO of Guide- becoming more compelling and a few stone, which is rebranding itself Northeast Ohio entrepreneurs — as from its former name, Berea well as some established companies Children’s Home & Family Services. Page 10 — stand to benefit. “Natural gas is a game changer for high-mileage automobiles,” says Brad Trembath, president of NatGasCar “The crystal ball that LLC in Cleveland, a venture formed in was fogged over in 2008 by local entrepreneur Dan T. Moore to capitalize on fuel-system 2009 became clear.” conversions for vehicles. — Robert Garber, co-managing “An $80 fill-up with gasoline can be director of the Cresco brokerage reduced to $25 with natural gas,” Mr. in Independence. Page 15 Trembath said. “And because natural gas burns clean with 25% less carbon dioxide emissions, less greenhouse “You move to the gases are emitted into the atmosphere.” That’s pretty much the crux of the suburbs, and you’re argument for folks such as Mr. Trem- paying double taxes bath and Mr. Moore: Why wouldn’t anyone convert, they ask? plus you’ve got the They will, they are and they soon RUGGERO FATICA will do so in even larger numbers, said commute. Here, Brad Trembath, president of NatGasCar LLC in Cleveland, says natural gas as an alternative fuel for you’ve got everything cars is a “game changer.” He’s pictured here in the back of a converted truck with a gas cylinder. See NATURAL Page 11 around you.” — Georgene Crosby, a University Circle resident who took advan- tage of the Greater Circle Living program. Page 18 Software firm’s $5M investment timed perfectly CORRECTIONS By JAY MILLER Superior Ave. last July 28 as part of a [email protected] Kvamme visit, Silicon Valley ties assist LineStream familiarization tour of the state and ■ Lake Erie Monsters senior vice its emerging businesses. president and chief operating officer An impromptu visit to a local funding to aggressively grow our helping to land the investment. Shortly before Mr. Kvamme’s visit, Mike Ostrowski’s title was misstated company last summer by Gov. John team,” said company president David Mr. Kvamme is a former partner LineStream had signed a licensing in a March 12, Page 12 story on Kasich’s jobs guru paid a handsome Neundorfer. “The timing is absolutely in the Silicon Valley venture firm agreement with Texas Instruments the Monsters’ ticket prices rising. dividend last week. perfect for us to get this funding. Sequoia Capital who answered a Inc., a leading maker of control chips LineStream Technologies Inc., a We have new opportunities we’re call from his friend Gov. John used in motor control systems, that ■ A March 12, Page 3 story on young Cleveland industrial software exploring currently with major Kasich in January 2011 to come to would speed the company’s growth the practice known as “reshoring” firm, announced it landed a $5 mil- providers and the workload has Ohio to rebuild the state’s economic and with that, prompt a need for a misspelled the name of American lion, second-stage investment from been increased dramatically.” development effort as it shifted capital infusion. manufacturing advocate Harry U.S. Venture Partners, a Menlo Park, Mr. Neundorfer credits Mark from a state agency to a private “When we met with Mark Kvamme, Moser. Calif., venture capital firm. Kvamme, president and interim chief nonprofit. He visited LineStream’s we had (next-stage) target investors “We’re going to be using that investment officer of JobsOhio, with office at the Bloch Building at 2310 See LINESTREAM Page 8 20120319-NEWS--4-NAT-CCI-CL_-- 3/16/2012 10:04 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Get radical onventional thinking won’t save the children who live within the boundaries of the Cleve- land Metropolitan School District. It is going to take unconventional measures, Csuch as those proposed by Mayor Frank Jackson in his School Transformation Plan, for Cleveland to have a fighting chance at success in educating its young people. And the only way those measures can be put in place is if members of the General Assembly have the guts to approve legislation that would clear FROM THE PUBLISHER the way for their implementation. Cleveland’s mild-mannered mayor has donned his radical hat in promoting the transformation plan. The Democrat has done so at his political peril Kasich sticking with what’s worked because of the potential backlash from organized labor, which views the plan as an attack on age-old ast week, our government reporter, and it’s scheduled for a vote. Then, we’ll knitting, and staying with strategies that work rules that are standard fare for teachers in Jay Miller, delved into a nascent run it through our process.” seem to actually be helping, and that aren’t their collective bargaining agreements. movement to convert Ohio That was Linda Woggon, executive divisive. Good choice. into a so-called “right-to-work” vice president for governmental affairs Mayor Jackson is undeterred. So is Cleveland **** Lstate, a move that would prohibit forcing at the Ohio Chamber of Commerce. Joe EACH SPRING, WE PARTNER with schools CEO Eric Gordon, who told Crain’s the laws workers to pay union dues as a condi- Roman, head of the Greater Cleveland EDGE, a local economic development and work rules that apply to teachers “were created tion of employment. After last fall’s Partnership, the region’s chamber of organization, to honor the region’s mid- under a civil service paradigm.” The result of blistering defeat of a broad attack on commerce, told Jay that GCP hadn’t size companies that are creating value, decades of this model is a 275-page contract that government unions by the state even discussed the idea. wealth and jobs in Northeast Ohio. The shackles the district not only when it comes to Republican leadership, a small BRIAN Gov. Kasich, who was a vocal intent of the Crain’s Leading EDGE Awards personnel decisions, but also in putting together the conservative GOP faction did TUCKER leader in the anti-union effort is to applaud the companies that are the school calendar and figuring out transportation some polling that indicated sup- that was passed as Senate Bill 5 true drivers of our economy, and spread schedules. port for a right-to-work law here. but then defeated by Ohio voters the formula of their success to others. That might not be surprising, last November, seems disinter- Crain’s and EDGE are attempting to “The question I want to ask is, ‘Are these the work given the state’s broad base of ested in yet another fight with identify companies with revenues be- rules we need today?’” Mr. Gordon said. conservative, Republican voters. the state’s unions right now. tween $5 million and $750 million that Eliminating seniority as the sole criterion for Often, during the debate over When asked by Jay for a com- sell at least part of their goods or services determining which teachers must be let go first state workers’ unions, polling ment, the governor’s spokes- outside our region. They are not only when layoffs are necessary is but one aspect of the showed deep sentiment in favor woman, Connie Wehrkamp, creating jobs, but collectively are buying proposed plan. Mr. Gordon also would like to insti- of changing the overly generous wrote in an email: “Re-creating an enormous amount of supplies and ser- tute “differential compensation,” where the district benefits — especially the pension a jobs-friendly environment is essential vices from other businesses here. could give more pay to teachers who, for example, funding — in state workers’ contracts. to getting Ohio back on track. We’ve The intent of the Crain’s Leading work with special education students. However, that doesn’t translate to successfully cut taxes, torn down EDGE Awards is to honor these compa- Besides giving school officials greater collective business groups’ support, according to regulatory barriers to job creation and nies and show others how they have Jay’s reporting, and perhaps this quote replaced our antiquated economic succeeded. If you know of such a com- bargaining room, the plan would set aside a portion from his front-page story last week is development agency with a new, more pany, nominate them by visiting of levy proceeds for charter schools that are spon- the most telling: “We won’t even begin effective private sector corporation.” www.edgef.org. The nomination dead- sored by the district. Mayor Jackson sees this revenue- to take a look at it until it’s on the ballot In other words, we’re sticking to our line is the end of the month. ■ sharing arrangement as critical if the district is to get families of the 14,000 Cleveland schoolchildren who already attend charter schools to buy into a levy that THE BIG ISSUE the district wants to put on the ballot this fall to help deal with a $65 million deficit. Will Cuyahoga County’s new form of government help prevent the re-emergence of Dimora-style corruption? Among the other intriguing elements of the plan is the Transformation Alliance. It would be a group composed of parents, educators, business people and civic leaders who would evaluate district schools — as well as public and private charter schools — on common performance standards. It would recommend which schools should be supported and which should be closed or cut off from public money. However, the plan will go nowhere unless law- makers in Columbus become radicals, too, and back SAM THOMAS KARI SOLOMON MATT GUNN BRANDON KELLY legislation that would allow its implementation. Cleveland Cleveland Cleveland Bedford Democrats will need to act against convention by No. … You’re dealing with the It’s depending on a lot of No. ... They’re already having No. At the end of the day people voting for a bill that unions may not like, while frailties of the individual. The things. … The old saying is corruption-based issues. The are still going to be people. Republicans will need to support the cause of a person. You’d think that under absolute power corrupts Plain Dealer has already spotted You’ve got good people, big-city mayor who’s a Democrat. the old structure … that one of absolutely. As long as that can them with the board of revi- you’ve got bad people. … As they deliberate the measure in coming weeks, the two others (commissioners) be prevented I think the new sions. … One (board member) Business is no different. White they should keep in mind Mayor Jackson’s simple would know what’s going on form of government will was a Democrat even though collar crime happens every and would have interceded to succeed. she had to be a Republican for day. question: “Either this, or what?” The status quo isn’t arrest it. the job. working. Radical change must come. ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. 20120319-NEWS--5-NAT-CCI-CL_-- 3/16/2012 11:20 AM Page 1

MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5

PERSONAL VIEW Fracking concerns formed out of fear, despite facts 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 By SPENCER ABRAHAM Mr. Abraham is the former U.S. suggested that there is much to energy development continue to Phone: (216) 522-1383 Secretary of Energy and currently dread from the tightly regulated fan the flames of fear in Ohio. Shale Fax: (216) 694-4264 n Ohio today, fear of the unfa- chairman and CEO of Abraham & process of extracting oil and natural development is too exotic, they claim. www.crainscleveland.com miliar could stand in the way Roetzel, a Washington, D.C.-based gas liquids from Utica Shale. Even The regulations are too weak, the of progress, opportunity and the name for the drilling process opponents assert. We need Wash- Publisher/editorial director: public affairs firm and a joint venture Brian D. Tucker ([email protected]) continued economic recovery. conjures danger — horizontal ington and the EPA, rather than with the Roetzel & Andress law firm. Editor: IThanks to technological advance- hydraulic fracturing, or “fracking.” energy-producing states, to oversee Mark Dodosh ([email protected]) ments, a vast, resource-rich forma- Set aside the fear and rumors, for the entire process, they maintain. All Managing editor: tion far under Ohio’s surface now is touches the eastern sliver of Ohio a moment, and let’s consider the groundless fears, all aimed at halting Scott Suttell ([email protected]) being safely unlocked. The forma- — Utica Shale rests deep inside facts. Ohio sits above an immense devel-opment that creates jobs and Sections editor: tion, called Utica Shale, could hold Ohio’s border and represents an formation of minerals. Utica Shale strengthens our energy security. Amy Ann Stoessel ([email protected]) Assistant editor: untold billions of dollars in American incalculable economic opportunity is rich with oil and natural gas What has been the result of these Joel Hammond ([email protected]) oil and natural gas. for the state and its people. liquids. Safely recovering these two conflicting views? Public con- Sports Unlike the Marcellus Shale forma- What stands between Ohio and natural resources will bring much- fusion. Senior reporter: tion — which is located nearby in these great resources? Fear. needed economic activity and A January 2012 Quinnipiac Uni- Stan Bullard ([email protected]) states such as Pennsylvania and West Opponents of unconventional oil prosperity to Ohio and its people. versity poll captured the dissonance. Real estate and construction Virginia, is shallower, and only and natural gas development have Meanwhile, opponents of domestic See VIEW Page 6 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 director: Lori Grim ([email protected]) Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events coordinator: Jessica Snyder ([email protected]) Advertising sales manager: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Office coordinator: Toni Coleman ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Audience development manager: Erin Miller ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing

G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)

Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to custom- [email protected], or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20120319-NEWS--6-NAT-CCI-CL_-- 3/16/2012 1:25 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 Riverside Co. execs on PR offensive The Private Equity Growth Capital She ran into that brick wall Cast negatively by Council, an industry advocate, in herself when she tried within the February launched a multimillion- past year to recruit private equity Romney critics, they dollar effort called “Private Equity at executives to testify on behalf of a Work” to promote an image of bill to exempt private equity from detail industry success private equity practitioners as job certain regulation. creators who fix and expand the “I called a few firms in Virginia to By MICHELLE PARK companies they buy to generate see if they would be willing to send [email protected] returns for their investors. someone to testify, and the answer The image campaign is a direct was no,” Ms. Hendrickson said. Some Behaving like an ostrich during response to political attacks that firms expressed a concern that their these times won’t cut it, these exec- threaten the industry’s reputation, limited partners — that is, investors utives have decided. according to the organization. — might be uncomfortable with So, with criticism of the private Riverside has proven to be one of them doing so, she noted. equity industry at a high as the pres- the council’s “most active firms The reality is that the vast majority idential campaign progresses for Bain when it comes to telling the private of private equity firms are too busy Capital co-founder Mitt Romney, the equity story,” said Ken Spain, vice raising capital and otherwise con- top executives of The Riverside Co. president for public affairs and ducting their investments to get vocal, — this region’s most prolific private communications for the council. said Alex Jones, senior analyst and equity firm — are sticking their col- One of the first two companies press officer for Preqin, a provider of lective neck out to shed a positive profiled in a video case study series data and research on private equity light on their industry. is Riverside-owned Universal Smart- and other alternative investments. Leaders, including co-CEO Stewart Comp, a Washington, Pa., company “There are a few very high-profile Kohl and chief operating officer Pam that has added 142 new jobs since examples of ‘white knights’ for private Hendrickson, have appeared on being acquired by Riverside in 2007. equity. However, the vast majority national news shows and have penned Universal SmartComp is a nation- of private equity firms are too small, guest articles for various publications. wide physical medicine network lack the time and resources, or are The firm also plans to have about 20 solution in the workers’ compensa- otherwise disinclined to step into CEOs of Riverside portfolio companies tion industry. political matters,” Mr. Jones said. visit Capitol Hill in May, since they’ll A number of private equity players As of late, though, it does appear be in Washington, D.C., anyway for a have remained noticeably silent, that more are willing to talk, Ms. Riverside leadership summit. though, despite the surge of criticism Hendrickson noted. “It is hard to get the word out by those who paint the industry as a “We as an industry have got to get about the positive role of our industry greedy one that slashes jobs while the research done,” she said. if you have your head in the sand,” making off with investment returns. “We’ve got to have more facts,” Riverside spokesman Graham Hearns “We have been surprised at the according to Ms. Hendrickson. said. “I think we’re unique in that reticence of many of our brethren to “We’ve got to be out there talking we’re trumpeting the success of get out and talk about the good things about the good things, about what private equity.” that they do,” Ms. Hendrickson said. we do, what the purpose is.” ■

View: Shale potential outweighs unknown continued from PAGE 5 although 72% say they would like to Association, and not a single case of Ohioans said the economic benefits slow deep shale gas drilling until fur- drinking water contamination can of shale development outweigh envi- ther studies can examine the effects. be attributed to fracturing. It is a ronmental concerns, 64% to 29%, What’s at stake economically? A lot. record to applaud and maintain. The Ohio Department of Natural Gov. John Kasich has chosen to Resources conservatively estimates exercise caution while remaining that between 1.3 billion and 5.5 fiercely pro-economic development billion barrels of oil and between 3.8 in his Utica Shale-related policies. It trillion and 15.7 trillion cubic feet of is a path that Ohio legislators would natural gas could come from Ohio’s be wise to follow. As the governor Utica Shale. The oil and gas industry forcefully articulated in his State of RTA is helping says this development could create the State address: “We cannot let more than 200,000 jobs and generate our fears outweigh the potential.” nearly a half-billion dollars in new He is absolutely right. state revenues. Delaying development of Utica Sherwin-Williams Local communities would benefit Shale indefinitely, or even temporarily, from development as well, as millions serves no purpose other than to put of dollars are pumped into their Ohio behind other energy-producing economies for infrastructure devel- states and to postpone economic paint the town green. opment. It’s a cascading, private-sec- renewal. Legislative leaders in Colum- tor-driven economic stimulus that bus have a responsibility to advance touches a robust supply chain fueled common sense policies aimed at by small- and medium-size businesses. protecting the environment while While shale development — like providing a regulatory pathway for the virtually every other industrial industry to move confidently forward. process — does indeed carry some Ohio legislators face a choice this risk, the relevant thing to keep in spring as they consider critical mind is that hydraulic fracturing has legislation to determine the fate of RTA’s Ready to Ride Program has made it easier than ever for been successfully and safely employed Utica Shale development: They can Sherwin-Williams employees to reduce their carbon footprints and in the United States for more than 60 give into fear, or they can side with years. In that time, some 80,000 wells progress, private-sector job creation, save money by riding RTA to work. It features: have been fractured in Ohio alone, expanded opportunity for all and a according to the Ohio Oil and Gas nation that is more energy secure. ■ Two Free Work Personal Trip Week Passes Transit Planner Assistant

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 Cliffs’ dividend hike signals shift LineStream: Tech firm

recent years. For instance, Cliffs concerns on the street was that there After big acquisitions last year paid $4.9 billion to acquire may be a lack of discipline after is gaining momentum Consolidated Thompson Iron Mines some of the deals that have been of past, company now in Canada. That deal was preceded done. Essentially, what they’re saying continued from PAGE 3 tion, often dramatically. in 2010 by the $757 million pur- is that you don’t have to worry on our whiteboard,” Mr. Neundorfer It got its first funding in 2008 from will focus on boosting chase of West Virginia-based INR about that.” recalled in an interview last week. Cleveland-based Early Stage Part- existing business lines Energy and an $88 million buyout of Cliffs told analysts it will pay “And he was looking over my shoulder ners and was able to pilot its prod- its partners in Newfoundland’s down $1 billion in debt over the and saw the list of targets we hadn’t ucts at a Parker Hannifin Corp. Wabush Mines. next five years and have $700 million been introduced to — it’s incredibly hose-extrusion plant in Ravenna, By DAN SHINGLER Those three deals were keys to in cash at the end of 2012. Mr. Mac- important when you’re raising where its software reduced power [email protected] Cliffs building up its reserves of iron Gregor approves of the strategy. money to find a prime introduction consumption by more than 50%. ore, coal and other steelmaking “If they’d have had a call and from a credible source. Mr. Neundorfer said he sees an Shareholders in Cliffs Natural materials. They have given the instead of a big dividend increase “That following week he intro- opportunity to grow the company’s Resources Inc. last week received a company plenty to chew on for the they had said, ‘We have another big duced us to all three companies we business with Texas Instruments, cash gift in the form of a huge dividend foreseeable future, Cliffs CEO acquisition’ … I think you’d have seen had on that list,” he said. One of those and then grow beyond that. increase, and the change in philosophy Joseph Carrabba told analysts in a that stock go down by $5, instead of companies was U.S. Venture Partners. “Anything that’s automated and behind that increase might keep March 14 conference call. up $5,” Mr. MacGregor said. Mr. Kvamme had a self-deprecating controlled, our products can add paying off for shareholders going “Large scale M&A is no longer our But it appears Cliffs and its remark at the ready when asked value there,” Mr. Neundorfer said. forward if the company and analysts priority,” Mr. Carrabba told analysts investors are on the same page, as about the LineStream visit. The transformative value of are correct. in a call that was more an institu- Mr. Carrabba told analysts the com- “Every once in a while I do what I LineStream’s software is reflected in The Cleveland company with a tional love fest than it was a grilling pany has achieved the scale and say I’m going to do,” he said with a the company being nominated for a global business that supplies steel about strategic rationale. At least diversity it needed with its acquisi- laugh in a phone conversation as he startup of the year award in the 2012 mills with iron ore, coal and other raw three analysts personally thanked tions and now is focused on total traveled to Gallipolis to meet with UBM Electronics ACE Awards con- materials told shareholders they’ll be Mr. Carrabba for boosting the divi- shareholder return, including further leaders of a company there. “I made test. The winners of that contest, getting not the usual 28 cents per dend. increasing dividend payouts. three or four introductions and sponsored by UBM Electronics, will share in quarterly dividends, but 62.5 Mr. Carrabba said he and Cliffs’ In the meantime, the company’s everyone was interested and U.S. be announced March 27. cents per share, or $2.50 per year, management team will focus on new high yield should help buoy its Venture Partners got to the finish line.” Mr. Neundorfer said he expects beginning June 1. That’s an increase improving the performance of their stock price, and perhaps quash talk Ready for takeoff? the company to double its staff of of 123%. existing operations, especially its of another company attempting to five by the end of this year and Even after Cliffs’ stock price jumped North American coal operations, buy Cliffs, Mr. MacGregor said. LineStream was founded in 2008 double again by the end of 2013. $4.64 per share on March 14, the day which have been one of the company’s (Though he, for one, didn’t believe to take advantage of technology LineStream recently moved from after the announcement, to $69.55 greatest challenges over the last that was a threat recently anyway.) developed by Zhiqiang Gao, associ- the Bloch Building to the Western Re- per share, the new dividend rate still year as that industry has been rela- And it might be tough for some- ate professor and director of the serve Building at 1468 West 9th St. in left the stock with a yield of 3.6% — a tively flat. one else to make more from Cliffs’ Applied Control Research Lab at the Warehouse District. little more than the current yield on That’s exactly what analysts and assets than the company can on its Cleveland State University. Line- “These are the kinds of companies 30-year U.S. Treasury bonds. investors wanted to hear, said David own, as Cliffs is well run, he said. Stream writes software that can be we want to have in Cleveland and Cliffs also told shareholders to MacGregor, president of Longbow “It’s really an attractive balance added to the controls of existing Ohio,” Mr. Kvamme said. “If these expect a new era at the company, Research in Independence, who between earnings growth and cash electric motor-powered equipment guys take off, they’ll take off very which will focus on growing its existing follows Cliffs. flow,” Mr. MacGregor said. “With — everything from washing machines quickly and help create a real business lines and will take a break “This is a big positive for Cliffs,” most companies you just get one or to automated industrial equipment ecosystem (for venture capital de- from making the big acquisitions of Mr. MacGregor said. “One of the the other, but not both.” ■ — and can reduce power consump- velopment) for us.” ■ 20120319-NEWS--9-NAT-CCI-CL_-- 3/16/2012 12:13 PM Page 1

MARCH 19 -25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 SEC official: Some private Health reforms driving up costs

have risen in excess of 5% since 2010. Almost 37% said the rule elimi- funds need not register And new data show To offset those rising expenses, nating annual and lifetime coverage that companies expect 62% of responding employers said limits for “essential health benefits” Agency’s myriad protections unnecessary for they expect their peers to raise was responsible for their increases. their peers to increase employee contributions for health Despite the increased costs, 57% sophisticated investors, commissioner says care coverage. About 56% said they of responding employers said they employee contributions expect other employers to increase plan to expand their group health By MARK SCHOEFF JR. to $100 million in assets under their plans’ deductibles and copay- plans to comply with health care Investment News management will switch from SEC ments, while 51% said they think reform requirements. to state registration by this summer. By MATT DUNNING employers will shift more of the cost About two-thirds said it was Just as a new regulation requiring Even as the net number of advisers Business Insurance burden for dependent care to their unlikely that they would reduce private investment funds to register under the commission’s watch workers. financial support for other employee with the U.S. Securities and Exchange declines, the assets under manage- While most employers have not “Now that the health care reform benefits, such as dental, disability Commission is about to go into ment that SEC-registered advisers yet calculated the financial impact of act has entered the implementation and life insurance, while just 27% effect, an agency official said the control will increase from $43 tril- compliance with the Patient Protec- phase, the costs and benefits asso- said they likely would cut back regulator should consider lifting lion to about $47 trillion, according tion and Affordable Care Act, some ciated with the act are coming into on contributions to tax-qualified the mandate on some managers to Mr. Plaze. The upward trend is estimate that compliance with the greater focus for employers,” said employee benefits such as pensions because they cater to sophisticated based in part on the size and law has driven their group health Jay Kirschbaum, practice leader for and 401(k) accounts. investors. complexity of the private funds. costs up by as much as 5%, according Willis Human Capital Practice, in a “Respondents also indicated the SEC commissioner Daniel Gal- Mr. Gallagher said the funds are to a Willis Group Holdings P.L.C. statement. new requirements will force them lagher said this month that the an important mechanism for raising survey released this month. “The survey suggests employers to think about their benefits in a agency should offer exemptive relief capital and contributing to economic The survey, conducted in December realize that costs of providing med- strategic manner and as part of the to some of the private equity and growth. by Willis’ New York-based Human ical benefits will increase and that total rewards they use to attract, hedge funds that the SEC will over- “Capital formation leads to job Capital Practice division, indicated they will likely have to pass those retain and motivate employees,” see beginning March 30. The large, creation, which we could use right that only 27% of responding employers costs on to their employees,” he said. Mr. Kirschbaum said. opaque funds were put under the now,” Mr. Gallagher said. “The have determined what it has cost Among companies that had More than 2,300 employers SEC’s purview by the Dodd-Frank commission cannot and should not their company to comply with the measured the cost of compliance responded to the survey, with 69% financial reform law as a way to attempt to eliminate risk taking.” health care reform law in the two with the health care reforms, a little reporting fewer than 500 full-time better monitor systemic risk in the years since its implementation. more than half said the cost increases employees, Willis said. ■ financial system. The issue of compliance Among those employers, more had been driven primarily by a In remarks to the Investment Later in his speech, Mr. Gallagher than 55% said their total health care provision of the health care reform Matt Dunning is an associate editor Adviser Association compliance said the SEC should “find a way to costs had risen at least 2% as a direct law requiring employers to offer with Business Insurance, a sister conference in Arlington, Va., Mr. provide more clarity” to the issue of result of the reforms. More than 15% coverage to employees’ adult chil- publication of Crain’s Cleveland Gallagher argued that SEC registra- the liability of compliance officers of those employers said their costs dren up to age 26. Business. tion would raise costs for the private for their firms’ actions. funds, investors in which often are In January, the agency dismissed high-net-worth individuals and are a case revolving around whether the market-savvy. general counsel of a broker-dealer “To regulate as if all investors are alike ... would be simplistic and counterproductive.” – Daniel Gallagher, commissioner, U.S. Securities and Exchange Commission

“Not all investors need the full should have fired a rogue broker protection of securities laws,” said rather than recommend that the Mr. Gallagher, a Republican com- broker’s supervisors do so. The bro- missioner. “To regulate as if all ker’s managers failed to discipline investors are alike … would be the broker, who was later convicted simplistic and counterproductive. of securities fraud. This expansion of our regulatory The SEC did not resolve whether reach will not serve to protect retail legal and compliance officials are investors.” supervisors, as an SEC administra- However, an SEC staff member tive law judge ruled in the case. That who spoke later at the Investment judge also found that the broker’s Adviser Association conference general counsel had done every- cautioned that private funds thing he could to address the firm’s shouldn’t count on the SEC turning situation. them loose. Mr. Gallagher, who was forced by Robert Plaze, deputy director of the SEC to recuse himself from the the SEC’s Division of Investment January case because of work his Management, said the filing dead- previous law firm had done, said line was Feb. 14, which puts it “late compliance personnel should not in the day” for private funds to be deemed supervisors. The added appeal their registration. liability may force them to stay in “I would not anticipate broad “dark corners” of a firm rather than exemptive relief at this point,” Mr. lead a “culture of compliance. Plaze said. “If there are any changes “This creates a dangerous in the area, it will be done in dilemma,” Mr. Gallagher said. “We Congress.” must strive to ensure that the supervisor liability never deters Funds sign up legal or compliance personnel from About 1,250 private funds have diving into the firm’s real-world registered with the agency since legal and compliance problems.” ■ January, about 300 more than antic- ipated, according to Mr. Plaze. As Mark Schoeff Jr. is a reporter with the SEC takes them on, about 3,000 Investment News, a sister publica- investment advisers with $25 million tion of Crain’s Cleveland Business. UPCOMING EVENTS NorTech Innovation Awards

Crain’s annual reception honoring www.crainscleveland.com/section/ some of Northeast Ohio’s most NORTECH_tickets. The deadline to promising technology companies sign up is this Wednesday, March 21, and their innovations is this at noon. Thursday, March 22, at LaCentre in For more information, call Jessica Westlake. D. Snyder at 216-771-5388 or email To purchase tickets, visit her at [email protected]. 20120319-NEWS--10-NAT-CCI-CL_-- 3/15/2012 4:03 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 After scrambling in ’11, Indians alter promotions plan

By JOEL HAMMOND cations. desired quick turnaround. Mr. Dan- But the team isn’t pocketing THE LUCKY 15K [email protected] Take, for instance, the Indians’ burg said the team, which places its the savings on promotional items. Shin-Soo Choo T-shirt giveaway last giveaway orders at least six months Instead, it has beefed up its “rally The Indians in 2012 will limit The Cleveland Indians’ feel-good May 21, during a Saturday afternoon in advance, didn’t order 40,000 T- alley” schedule. Those gatherings, most of their giveaways to the promotional schedule turned into, home game against the Cincinnati shirts right off the bat because if the on Eagle Avenue between Progres- first 15,000 fans through at times, a nightmare in 2011 — an Reds. The Indians, using attendance crowd numbered only 21,000, storage sive Field’s left-field bleachers and Progressive Field’s gates. A list experience that has altered signifi- forecasting models in October 2010, would become an issue. The Indians the parking garage just to the north, of those limited giveaways: cantly how the team constructed its ordered 21,000 Choo T-shirts. faced a similar issue with a Bob Feller feature live music and less expensive ■ April 7: player calendar 2012 promotions. The Indians, it turned out, were bronze statue giveaway last July 4. stadium food. The Indians have ■ May 5: Chris Perez jersey Gone are the days of giveaways 27-15 at that point and leading the Even during last season the team increased the number of rally alleys ■ available to every fan that walks American League Central Division began to take steps to address the to 14 from three. May 20: Joe Carter bobblehead through Progressive Field’s gates. by six games, and fans were issue. This year, then, giveaways — The Indians also will spend more ■ May 28: Justin Masterson jersey Most of the team’s giveaways — responding. Add in that the team’s such as bobbleheads featuring on their three concerts this summer ■ June 3: Carlos Baerga bobble- including five bobbleheads, four games against the Reds traditionally former players Joe Carter, Carlos after reallocating some giveaway head jerseys, a T-shirt and a player calen- have been some of the year’s best Baerga, Sandy Alomar and Gaylord funds. Mr. Danburg explained why. ■ June 17: Carlos Santana jersey dar — now will be available to the attended, and a promotional disaster Perry, and current shortstop As- “While we may reach only 15,000 ■ June 18: Asdrubal Cabrera first 15,000 fans to arrive at the ball- ensued. The Tribe had to issue drubal Cabrera, and jerseys featuring fans with specific giveaways, we’re bobblehead park. 20,000 rain checks for Choo T-shirts, Chris Perez, Justin Masterson, Carlos able to increase the quality and ■ June 20: Indians T-shirt In 2011, those for-everyone give- which now would take another nine Santana and former pitcher Charlie frequency of higher perceived value ■ aways, meant to drive attendance to 12 weeks to arrive. Those who Nagy — will be limited to the first items such as the bobblehead and July 4: Sandy Alomar Jr. bob- and subsequently provide a revenue didn’t receive those shirts promptly 15,000 fans. Mr. Danburg said jersey series in 2012,” Mr. Danburg blehead ■ boost, instead cost the Indians were an unpleasant lot. getting fans into the ballpark earlier said. “We’re also able to re-allocate July 22: Charlie Nagy jersey hundreds of thousands of dollars, More problematic, the unit price will be a nice perk, but the main im- promotional resources to impact all ■ Aug. 12: Gaylord Perry bob- according to Curtis Danburg, the for each T-shirt doubled, according petus behind the decision was more fans with increased experiential blehead team’s senior director of communi- to Mr. Danburg, because of the cost certainty on the team’s end. promotions.” ■

With growing footprint, list of services, Berea nonprofit rebrands

By TIMOTHY MAGAW CEO, said should help the nonprofit organization in August plans to open The group also is in the midst of look at smaller behavioral health [email protected] more easily expand into new mar- a charter school, Stepstone Academy, developing a three-year strategic organizations “who are looking for kets and overcome the perception in Cleveland’s Central neighbor- plan, Mr. Zentkovich said. It’s somebody to give them economy of For a growing nonprofit that that it’s only located in Berea. hood. The school is being devel- looking at other nonprofit agencies scale.” operates across the state and offers “As we went into new communi- oped with the help of Perry White, throughout the state with similar Aside from offering residential more services than just residential ties, it became difficult to explain who founded the Citizens Academy missions with which it could treatment and group home options treatment, Rich Frank said his who we were,” he said. “We had to charter school in Cleveland in 1999. potentially affiliate or even acquire. for at-risk youth, the organization group’s moniker, Berea Children’s first explain who we were not.” “It’s a long-term strategic view in “I think the organization, the offers an array of community-based Home & Family Services, simply no The name change comes at a the sense that there’s a deep-held board and everyone else is excited services such as counseling, men- longer made sense. pivotal time for the nearly 150- belief that to solve the problems about what this means for us,” he toring and work force development That’s why the organization, year-old organization as it looks to of kids with behavioral needs, we said. “We’re leveraging 150 years of programs. which employs about 1,000 people expand its footprint across the state need to start earlier,” said David legacy the organization has built Most recently, the group affiliated and offers behavioral health and — both geographically and in the Zentkovich, chairman of Guide- and are really excited about rolling with Seeds of Literacy, an organi- other services in 22 counties, is number of services it provides. stone’s board of directors. “Educa- it out into different markets.” zation based on the West Side of rebranding itself as Guidestone — To augment its programs and tion is a key way to break that While he couldn’t offer specific the city that offers GED tutoring a name that Mr. Frank, the group’s bridge any education gaps, the cycle.” details, Mr. Frank said the idea is to and testing. ■

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MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 Natural: Area companies benefit from industry United will

continued from PAGE 3 minivan, the Dodge Avenger, the human nature,” Mr. Battaglia said. Mr. Moore, who noted that his Chrysler 200, the Volkswagen Routan decrease company has seen interest in the and the Dodge Journey as vehicles Spread the work vehicles climb right alongside gaso- for which NatGasCar’s systems are Companies such as NatGasCar line prices in recent months. approved so far, Mr. Moore said. and CNG-One aren’t just making capacity To date, NatGasCar has converted Mr. Moore, among others, thinks money for themselves, because more than 100 vehicles — most of companies that own and operate they also use local suppliers for them minivans used as taxis — fleets will be best suited to benefit many of the parts and fittings that By CRAIN’S CHICAGO BUSINESS from gasoline to compressed natural from the first wave of natural gas go into their conversion systems. gas, or “CNG” as it’s known in the vehicles. They’ll also have a leg up For instance, CNG-One partners United Airlines said it will reduce industry. on consumers because fleet owners with SSP Inc. in Twinsburg for capacity further in the face of higher But it’s only getting started, Mr. can operate their own CNG filling many of its fittings and buys its fuel prices, which are causing airlines Trembath said. His boss, Mr. stations, while few commercial gas metal boxes and cladding from to raise fares. Moore, said he expects 2012 to be a stations have yet to offer the fuel. Wrayco Industries in Stow. The number of seats will be down landmark year for his fledgling Mr. Moore has an answer to that The work from natural gas vehicles 0.5% to 1.5% this year, United Conti- company. as well: He’s working on a home likely is just beginning for North- nental Holdings Inc. CEO Jeffery “We’ll make a profit this year,” fueling station that consumers east Ohio companies. When the Smisek said last Tuesday, March 13. Mr. Moore predicts. could install in their garages and infrastructure to fuel CNG vehicles Previously, United expected capacity NatGasCar is taking an expensive could use to fill up their own vehicles is installed, it not only will be a to be about flat. approach to the industry, but one from their home gas lines. huge boon to the companies doing “As you raise fares, you burn off a that Mr. Moore says is necessary to conversions, but local companies certain amount of demand,” Mr. succeed, especially with original- A different road such as Chart Industries Inc. in Smisek told investors at a J.P. Morgan equipment automakers. There is another path to com- FILE PHOTO/JASON MILLER Garfield Heights will benefit. Chase & Co. transportation confer- It must win U.S. Environmental mercializing CNG vehicles, though, Dan T. Moore, who founded NatGas- Chart already sells equipment ence in New York. “As we see changes Protection Agency approval for and in Hudson, entrepreneurs Car LLC, said winning U.S. Environ- used to process natural gas and to in demand caused by changes in each vehicle type for which it Michael Battaglia and partner Nabil mental Protection Agency approval refine it into other raw materials, fares, we’re going to be responsive ... makes a CNG system — a process Sahlani are trying to take it with a will be key for the company. That OK but it makes a lot of products that so we can focus on making money.” Mr. Moore said costs from $100,000 company they’ve formed called will allow it to market its system to will be used in the CNG fueling Fares are up about 4% on average to $150,000 per vehicle model. But, CNG-One. companies that buy fleets. business, said Chart’s chief finan- across the industry so far this year, he said, not only does winning the The two are focused on more cial officer, Michael Biehl. according to Dallas-based FareCom- EPA’s blessing enable him to market general conversions than NatGas- into its permanent digs last fall, and “Our Distribution & Storage pare. Fuel prices have risen 5% this his system to companies buying Car, and they offer to convert any Mr. Battaglia says the interest of (D&S) business sells storage tanks year. fleets of new vehicles, but it also vehicle, generally for between $6,000 fleet owners has been strong since and dispensing equipment for the United’s CEO said he’s eagerly allows him to market to automakers. and $7,000 each. gasoline prices started rising. So LNG fuel stations, which are in the awaiting delivery later this year of Becoming a primary supplier of But because they don’t have EPA even though CNG-One only has process of being built out across the five Boeing 787s, which use less fuel CNG systems to a Detroit 3 auto- approval for new vehicles, they’re converted about a dozen vehicles U.S.,” Mr. Biehl said in an email to and fly as far as 777s and 747s but maker would turn NatGasCar into a consigned to working only with this year, Mr. Battaglia said he’s as Crain’s. offer less capacity. The aircraft, major company quickly, Mr. Moore used vehicles; new fleets and OEMs confident as ever that the company “This represents a very large which have been touted as featuring said. are off limits. will meet its goal of doing 188 vehi- opportunity for us in the U.S., as it a more comfortable environment for So far, NatGasCar is capturing It has been a bit of a bumpy road, cle conversions over the next 12 has been for Chart in China,” Mr. passengers, are expected to be in high headlines in the fuel and commer- Mr. Battaglia concedes, in terms of months. Biehl wrote. “Our D&S business will demand from fliers, which could bring cial vehicle markets as it receives convincing the everyday consumer Fleet owners have been coming also supply LNG (liquefied natural United more revenue. approval for more vehicle systems. to convert their vehicles the way he to him since gas prices went above gas) truck mounted tanks and trailers “It is a spectacular airplane, a Last Monday, March 12, for instance, had hoped. $3.50 a gallon, Mr. Battaglia said, to haul LNG to the stations in the game-changing airplane — one that the EPA approved the company’s “I totally misjudged what the and every time gasoline prices go future, and our E&C business can customers want to fly,” Mr. Smisek conversion system for Dodge Ram public perception would be,” Mr. up he hears from more of them. supply (equipment used) to liquefy said. “We hope to revenue-manage pickup trucks. The pickups join Battaglia admits. “People we talked to a year pipeline gas for LNG supply to the that plane differently than we manage the Chrysler Town and Country But the company only moved ago, now they’re interested — it’s fuel stations.” ■ the rest of our fleet.” ■

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 Mergers: Current climate difficult for smaller credit unions continued from PAGE 3 First Class to expand into Lorain an eight-employee Lorain County to continue in 2012 because the another, it’s more likely that their Inc., a firm that provides analytics County and to offer services and institution that has experienced economy continues to improve and members will continue doing to the credit union industry. Nation- products to the merging institution’s negative profitability and a lack of because “more and more small business with a credit union, Mr. wide, the number dropped by 3,115, members. board volunteers, and a Cuyahoga credit unions are finding it difficult Laurendeau said. or 30%, to 7,240 credit unions. Firefighters Community’s Mr. County credit union that also has to survive. He’s also hopeful that those credit Laurendeau declined to identify the suffered consecutive years of net “Some small credit unions in union members who may have In the pipeline three credit unions he’s talking losses, Mr. Laurendeau said. this very sophisticated marketplace used their small credit union’s Several credit union merger talks with, but he said each approached really have a difficult time meeting accounts passively could begin are ongoing in Northeast Ohio. him and is relatively small, roughly ‘Fighting for survival’ the needs of their members or at- using a larger credit union’s wider Eaton Family Credit Union in $10 million to $15 million in assets. Unless they are liquidated, credit tracting new members,” she said. array of offerings more actively. Euclid has completed five mergers In contrast, Firefighters Community’s unions are not acquired; they are John R. Martin, president and Members of credit unions lose in the last five years and is in talks assets total about $180 million. merged. That’s because credit unions CEO of Emerald Group Credit Union some element of exclusivity when with another, initiated by regulators “It’s just really tough to make are owned by their members. A vote in Garfield Heights, notes that many mergers occur, industry insiders concerned about the smaller credit money as a small credit union,” Mr. by the membership of the nonsur- younger adults “don’t know what a acknowledged. union’s struggle to grow and its Laurendeau said. “I think the low viving institution is required unless credit union is.” Many credit union “The sad thing is losing the mom- leadership void, said Mike Losneck, interest rates right now make it regulators are forcing their hand. leaders, too, are getting older and and-pop credit unions,” said David CEO of Eaton Family. The institu- really tough.” Debbie Matz, chairman of the “have lost their zest for innovation,” K. Lawhun, CEO of Steel Valley Fed- tion to be merged has $2 million in The merger that has been NCUA, which must approve any he said. eral Credit Union in Cleveland. “It’s assets and recently lost board approved involves a Cleveland credit merger involving a federally insured sad because it’s the small credit members, he said. union that has experienced several credit union, cites economic improve- Keeping it in the family unions that know you personally. Talks began in early summer years of unprofitability, Mr. Lauren- ment as a primary factor for the Rose Bartolomucci is reaping the You know the member, you know 2011, and Mr. Losneck expects the deau said. In addition, the institu- uptick in mergers in 2011. benefits of a merger. their family. You’re not just a number. merger to wrap up by June. He would tion’s manager was set to retire in “When the economy is down, I When the institution she led, You’re someone.” not identify the smaller institution. early 2012. think credit unions are just fighting Telecommunity Credit Union, merged Steel Valley Federal itself com- Ohio’s First Class Credit Union in “I think it’s seen by my board as for survival,” she said. into Towpath Credit Union of pleted a merger in October 2011, Cleveland only has paperwork left a healthy growth opportunity,” he Recently released year-end data Fairlawn in June 2011, the combined when it absorbed Brook Park to complete for its coming merger said. reveal that many credit unions institution was able to consolidate Municipal Employees Federal Credit with the one-employee Lorain He and his board are confident improved their performance in its vendors and manage expenses Union, which had roughly $1 million County Postal Employees Credit that the members of the smaller 2011 compared with the prior year; better, said Ms. Bartolomucci, who in assets. That grew Steel Valley to $35 Union in Elyria, said Jeff Spada, credit unions Firefighters Commu- their assets, return on assets and succeeded the president and CEO million in assets, Mr. Lawhun said. general manager of Ohio’s First nity absorbs will be hungry for the membership numbers increased of Towpath in January. When small credit unions choose Class. The deal should close May 1. wider menu of services and products while delinquencies and charge-offs Though she’s not seeing height- larger merger partners, though, their Mr. Spada’s board felt the merger Firefighters will market to them. dropped, Ms. Matz said. ened profitability yet, Towpath is members typically have something made sense because it allows Ohio’s The other merger possibilities are She expects the uptick in mergers able to allocate such savings to fund to gain, particularly access to expanded other improvements, such as products and services, such as technology, she said. And whereas credit cards, certain loan types, and Telecommunity couldn’t afford to mobile and online banking. build a team that included business “(The merger activity) is good in development and marketing profes- that we’ll have stronger credit unions sionals, the combined institution that are serving more members and can and has. have the capability of providing a “Separately, we couldn’t get to wider range of service,” the NCUA’s that point, but together, we had the Ms. Matz said. “But I think it means Where skilled, knowledgeable staff to do there will be fewer credit unions that,” Ms. Bartolomucci said. and decreased competition in cer- can I get a What are best When a credit union merges with tain marketplaces.” ■ sample job practices for description? employee on- CardioInsight raises $7.5 million boarding? CardioInsight ON THE WEB Story from CardioInsight Technologies Inc. of www.CrainsCleveland.com. now is focusing Cleveland has closed on securing U.S. a $7.5 million investment round that Food and Drug Administration What do I need it will use to speed up testing and clearance to sell the system in the commercialization of its first United States and demonstrating its to include in product, which produces 3-D maps value, Mr. Mendelsohn said. of the heart as it beats. The ECVUE system uses a vest my employee Where can The money was provided by a mix that gathers electrical data from the of new and existing investors, said body. With the help of specialized handbook? I get local Kevin Mendelsohn, vice president of software, those data are combined finance and corporate development. with images from a CT scanner to compensationco The company received the Euro- produce maps of the heart’s electrical pean Union’s CE Mark certification activity. The maps are meant to help data? in November. Three hospitals in health care providers more accu- Where England, France and Germany are rately guide treatments to areas of Does this already using the ECVUE system on the heart that are not beating prop- should we patients. erly. post our new qualify under job opening? FMLA? Tired of Being Screwed? Then stop hiring fly-by-night “roofing contractors” whose only office address is wherever their pick-up truck happens to be parked at the time! The no-insurance, irresponsible operators are driving the few Yeah, we can answer that. remaining honest roofing contractors out of business. Unless www.ercnet.org/answers | 440/684-9700 the consumer gets wiser, ultimately there will be no one responsible left! We are looking for a few wise consumers. If you fit the bill, call

216•881•1999 www.careyroofing.com CAREY founded in 1946 Roofing Corp. MEMBER: National Roofing Contractors Association 20120319-NEWS--13-NAT-CCI-CL_-- 3/16/2012 11:25 AM Page 1

MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13

6100 Rockside Woods Blvd., Date filed: Feb. 9, 2009 Hard Rock Crushing Ltd. Suite 350, Independence Date released: Jan. 10, 2012 TAX LIENS 30817 Schwartz Road, Westlake ID: 34-1573403 Type: Employer’s withholding, The Internal Revenue Service filed tax ID: 03-0546173 First Fruits Child Care Center LLC Date filed: Aug. 4, 2011 unemployment, corporate income liens against the following businesses Date filed: Jan. 18, 2012 21877 Euclid Ave., Euclid Date released: Jan. 10, 2012 Amount: $134,350 in the Cuyahoga County Recorder’s Type: Unemployment ID: 20-5120191 Type: Employer’s withholding Office. The IRS files a tax lien to protect Amount: $7,908 John King Tire & Automotive Inc. Date filed: Jan. 24, 2012 Amount: $1,266,034 the interests of the federal government. 5295 Pearl Road, Parma Type: Employer’s withholding Protem Homecare LLC The lien is a public notice to creditors Anthony Forde DDS Inc. ID: 36-4496357 Amount: $11,821 3530 Warrensville Center Road, that the government has a claim Suite 200, Shaker Heights 6820 Ridge Road, Suite 101, Parma Date filed: Sept. 26, 2011 against a company’s property. Liens Al Ihsan School Inc. ID: 20-3836346 ID: 34-1346657 Date released: Jan. 10, 2012 reported here are $5,000 and higher. 4600 Rocky River Drive, Cleveland Date filed: Jan. 20, 2012 Date filed: Nov. 22, 2011 Type: Employer’s withholding Dates listed are the dates the docu- ID: 34-1961620 Type: Unemployment Date released: Jan. 19, 2012 Amount: $5,240 ments were filed in the Recorder’s Date filed: Jan. 20, 2012 Amount: $7,588 Type: Employer’s withholding Amount: $14,278 Ohio Sauce Corp. Office. Type: Employer’s withholding, Hot Sauce Williams unemployment Pizza Dude Ltd. 25431 Hall Drive, Westlake Bad Boy Beepers Inc. 12310 Superior Ave., Cleveland LIENS FILED Amount: $11,751 th ID: 27-1253286 36025 W. 25 St., Cleveland ID: 34-1286996 Town N Country Pet Hospital Inc. Can-Am Cement Date filed: Jan. 10, 2012 ID: 34-1689175 Date filed: Nov. 3, 2011 21207 Chagrin Blvd., Beachwood P.O. Box 81965, Cleveland Type: Employer’s withholding Date filed: June 4, 2002 Date released: Jan. 4, 2012 ID: 31-1489049 ID: 80-0024155 Amount: $7,250 Date released: Jan. 18, 2012 Type: Employer’s withholding, Date filed: Jan. 24, 2012 Date filed: Jan. 4, 2012 Type: Employer’s withholding unemployment N F Industries Inc. Type: Employer’s withholding Type: Employer’s withholding Amount: $50,607 Amount: $31,910 P.O. Box 31354, Independence Amount: $13,203 Amount: $11,502 ID: 20-1561604 Bidder Transport Inc. Date filed: Jan. 31, 2012 18401 Maple Heights Blvd., Varrsity Constructors LLC R & M Stateline Ltd. GET DAILY NEWS ALERTS 23209 Miles Road, Suite A, Cleveland 32125 Solon Road, Solon Type: Failure to file complete return Maple Heights ID: 20-5305272 ID: 30-0690025 Amount: $5,910 ID: 34-1554376 FROM CRAIN’S! Date filed: May 12, 2010 Date filed: Jan. 10, 2012 Date filed: Jan. 24, 2012 Register for free e-mail alerts Markiewicz Automotive LLC Date released: Jan. 24, 2012 Type: Employer’s withholding, failure Type: Employer’s withholding 5081 Warrensville Center Road, and receive: to file complete return Amount: $10,074 Type: Employer’s withholding, failure Maple Heights ■ Amount: $12,776 to file complete return The Morning Roundup: The Sam-Tom Inc., Royce ID: 26-3591657 Amount: $16,319 day’s business news Date filed: Jan. 24, 2012 Climate Comfort Service Co. Security Services ■ Breaking news alerts: When Type: Employer’s withholding, employer’s Borowski Enterprises Inc. 6111 Carey Drive, Suite 2, Valley View 3740 Euclid Ave., Cleveland major news happens, you’ll know ID: 90-0496670 ID: 34-1965620 annual federal tax return 5731 Turney Road, Garfield Heights ■ Date filed: Jan. 20, 2012 Date filed: Jan. 18, 2012 Amount: $5,313 ID: 26-3319420 Daily headlines: Crain’s- produced news and blog items Type: Employer’s withholding Type: Unemployment St. Clair Automotive LLC Date filed: Sept. 28, 2010 ■ Amount: $12,760 Amount: $8,660 21100 Saint Clair Ave., Euclid Date released: Jan. 31, 2012 Small Business report: A Type: Employer’s withholding, weekly guide to small business Quick Employment LLC Integrity Waterproofing Inc. ID: 34-1910628 Date filed: Jan. 2, 2012 unemployment news P.O. Box 93722, Cleveland 1334 Summit Ave., Lakewood Amount: $5,634 ID: 04-3788598 ID: 20-2221560 Type: Employer’s withholding SIGN UP NOW AT: Date filed: Jan. 10, 2012 Date filed: Jan. 18, 2012 Amount: $5,003 CB Software Systems Inc. CrainsCleveland.com/register Type: Employer’s withholding, Type: Employer’s withholding, LIENS RELEASED 20600 Chagrin Blvd., Suite 1110, ■ Crain’s on Twitter: unemployment corporate income Shaker Heights @CrainsCleveland Amount: $12,002 Amount: $8,066 Action Staffing Personnel ID: 34-1650560 20120319-NEWS--14-NAT-CCI-CL_-- 3/15/2012 10:05 AM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012

manager, configuration management. GOING PLACES MARKETING BROKAW: Troy Walker to director financial consultant. BOARDS JOB CHANGES of retail strategy and business devel- SKODA MINOTTI: Jill Medovich opment. ESPERANZA INC.: Felicia Soto (JP- CONSTRUCTION and Dianne Moore to tax preparers. HIGHLAND PUBLIC RELATIONS: MorganChase) to president; Maria L. RUHLIN CO.: Carey McCullough to WINER+BEVILACQUA INC.: Brent Alan Ashby to senior account Haller to first vice president; Maribel site safety specialist; Lana Malone R. Thompson to partner. executive; Dan Kearsey to graphic Verdon to second vice president; to executive assistant; Megan designer. Anibal Estremera to treasurer; McCullough Malone Hance Hance to financial manager; Tom Ginny Whipkey to secretary. HOSPITALITY STUDIOTHINK: Christin Miller to Hill to superintendent. GATEWAY HOSPITALITY GROUP: account coordinator. EXTENDED HOUSING: Richard George Iannacone to regional Tibbits (RMT Properties) to president; EDUCATION director, operations and development. REAL ESTATE Judy Parmenter to vice president; BALDWIN-WALLACE COLLEGE: John Konrad to treasurer; Ellen ALLEGRO REALTY ADVISORS LTD.: Susan Van Vorst to director, Forbus to secretary. INSURANCE Matthew J. Sattler to associate, Conservatory of Music. FIELDSTONE FARM THERAPEUTIC USI INSURANCE MIDWEST: Kate strategic advisory consulting. NOTRE DAME-CATHEDRAL LATIN RIDING CENTER: Tom Rathbone Bang to president, employee bene- CBRE: Brandon Barnett to transac- SCHOOL: Elizabeth Maier to to president; Elizabeth Juliano to fits; Bill Ryan to chair, Cleveland tion manager, global corporate services. Hill Van Vorst Maier director, alumni relations and annual office. chair. giving. FIRST CATHOLIC SLOVAK LADIES SERVICE LEGAL ASSOCIATION: Cynthia M. Maleski FINANCE INFOCISION MANAGEMENT to president; Sue Ann M. Seich to ICE MILLER: Jonathon Groza to CORP.: Deloris DeHart to director, secretary; Stephen C. Hudak to FEDERAL RESERVE BANK OF associate. CLEVELAND: Susan Steinbrick to new employee training. treasurer. WELTMAN, WEINBERG & REIS senior vice president and CFO. KELLY SERVICES INC.: Diana CO. LPA: Tina Esker to national Comstock to partnered staffing AWARDS FINANCIAL SERVICE manager, bankruptcy operations. manager. AMERICAN INSTITUTE OF Groza Miller Sattler PARTY411 EVENTS: Julie Felder to GREAT LAKES FINANCIAL MANUFACTURING ARCHITECTS: Monica Green vice president, corporate and private GROUP: David Peterson to financial (Westlake Reed Leskosky) was named Jordan (Center for Families and analyst; Daniele Betliskey to servicing RPM INTERNATIONAL INC.: events. Russell L. Gordon to vice president, a fellow. Children) received the 2012 Women analyst; Tina Vespucci to marketing of Achievement Awards; Barbara director. CFO; Keith R. Smiley to vice TECHNOLOGY YWCA GREATER CLEVELAND: president of finance and controller; Debra Adams Simmons (The Plain Danforth (Ratliff and Taylor) received PINNACLE FINANCIAL GROUP Matthew T. Ratajczak to vice presi- CYGEM INTEGRATED TECHNOLOGY Dealer), Nan Cohen (Creekside a Lifetime Achievement Award. INC.: Brian Stulak to principal. dent of global taxes and treasurer; SOLUTIONS: Lisa Caudill to director Financial Advisors), Diane Downing RETIREMENT SOLUTIONS: Barry M. Slifstein to vice president, of operations. (Huntington National Bank), Lisa Rose Send information for Going Places to Zachary Messinger to associate investor relations and planning. OECONNECTION: Chris Parks to (Dix & Eaton Inc.) and Sharon Sobol [email protected]. Park-Ohio acquires Mich. manufacturer for $97.5M

Park-Ohio Holdings Corp. an- to earnings immediately. nounced a planned acquisition and In commenting on the deal, Park- Need Technology Help? reported a big increase in fourth- Ohio chairman and CEO Edward F. quarter earnings. Crawford said the planned acquisi- Try Cox Business Tech Solutions for 30 Days The diversified manufacturing tion “will allow our Supply Technolo- Free and logistics company said its Park- gies business to expand its product Ohio Industries unit has agreed to offerings to existing and new indus- acquire Fluid Routing Solutions Inc., trial customers worldwide. a Southfield, Mich.-based manufac- “Additionally, the FRS leadership turer of industrial hose products and position in fuel filler assemblies will fuel filler and hydraulic fluid assem- complement and augment our rela- blies, in an all-cash transaction tionship with OEM and aftermarket valued at $97.5 million. automotive customers,” he said. Park-Ohio said Fluid Routing The transaction is expected to close Solutions sells to automotive and by March 30, subject to the expira- industrial customers throughout tion of waiting periods and the receipt North America, Europe and Asia. of approvals under the Hart-Scott- The company has more than 950 Rodino Antitrust Improvements Act. employees and five production Separately, Park-Ohio announced operations in Florida, Michigan, Ohio, that its fourth-quarter earnings Tennessee and the Czech Republic. climbed to $18.9 million, or $1.58 Park-Ohio said Fluid Routing per diluted share, from $3.5 million, Solutions had revenues of about or 30 cents a share, in the fourth $190 million for the trailing 12 months quarter of 2010.

that ended Jan. 31, 2012. Park-Ohio Sales at Park-Ohio rose 6.3%, to

said the transaction will be accretive $234.6 million from $220.5 million. ■ PROBLEM FIXED PROBLEMPPRROBLBLEM FIX FIXEDED

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MARCH 19 - 25, 2012 CRAIN’S CLEVELAND BUSINESS 15

INSIDE

16 RESIDENTIAL DEVELOPERS BUILD WITH GREEN IN MIND. REAL ESTATE TAKING ACTION IN AKRON Leaders aim to help University Park area catch up to rest of downtown’s revitalization

By STAN BULLARD [email protected]

n the center of Akron, the watery remains of the Ohio Canal and a steep hill have played a defining role in the city’s growth since the I19th century. On one side is downtown Akron. On the other is an area now dubbed University Park, which encom- passes 50 blocks bounded by Broadway, Arlington and East Market streets and Interstate 76. With downtown Akron enjoying a buzz thanks to redevelopment projects from Canal Park to Quaker Square, civic leaders are adding University Park to their gaze. University Park has many pluses but lacks the commercial and resi- dential redevelopment of downtown; just one new commercial project of scale rose in University Park during the last realty boom. Spicer Village, a multimillion-dollar mixed-use project with retail and residential units, was the sole urban head-turner. Reversing that trend with new commercial and residential properties is the task of the University Park Alliance, a public-private partnership See AKRON Page 17

WHAT IS THE ALLIANCE?

University Park Alliance is charged four mixed-use projects already are in with developing new commercial and the works. The group’s wish list residential properties in the University includes 803 residential units, at least JANET CENTURY Park area of downtown Akron, which one hotel, and nearly 113,000 square Eric Johnson, who leads Akron’s University Park Alliance, in front of boards representing four redevelopment districts in encompasses about 50 blocks. feet of retail space and 260,000 UPA’s master plan. In the foreground is a part of a fence by renowned University Park artist Don Drumm. Leader Eric Anthony Johnson said square feet of office space. Commercial brokers optimistic as property markets improve

lights went out. But when things that property is trading again — Property trading hands more frequently in industrial, apartment sectors picked up, they picked up quickly.” and with it, commissions, though Part of the activity level came they may be smaller for each deal By STAN BULLARD heavy debt loads after rents dropped stagnation of 2009 that ebbed in back last year when lenders devel- than in the past. A typical thread [email protected] due to the recession — the slow, 2010 and by 2011, the improving oped an appetite for commercial from the past is missing now: Few and now quickening, revival of market was no longer a fluke. properties, although they remain firms discuss working with com- ike old friends surfacing property markets has lifted the “The crystal ball that was fogged picky eaters. mercial real estate developers, who from the past, some familiar outlook for the region’s brokerages. over in 2009 became clear,” Mr. The strongest part of the brokerage are more focused on survival than phrases crop up when you “We’re pretty busy,” said Robert Garber said. As companies closed market is enjoyed by firms with developing projects except for ask owners and operators of Garber, co-managing director of or grew to replace defunct com- substantial practices serving apartments. LNortheast Ohio commercial bro- the Cresco brokerage in Indepen- petitors, he said, “The business (for industrial clients, where leasing “Developers are gun-shy,” Mr. kerages to describe their businesses: dence. “Deals are getting made. brokers) came back.” is stronger than sales. Next are Garber said. “I don’t think there is busy, had a good year, expect a We handle a lot of multitenant Michael Glass, the Cleveland- apartment sales due to high occu- a ton of product on the drawing better one, optimistic, even bullish. business, and that is keeping gas based regional manager for the pancies and rent growth. Office boards.” Although woes remain plentiful in the tank.” Cleveland and Columbus offices of and retail sectors trail the pack. That means space users dominate in the commercial realty world — The yardstick is clear: first, there Marcus & Millichap, describes the the business. Several brokerages particularly as many property was the limbo that followed the downturn as “being in the shower Changing focuses say they have managed to put owners and developers shoulder 2008 banking crisis, then the when the water went off and the For brokerages, the key thing is See BROKERS Page 17 20120319-NEWS--16-NAT-CCI-CL_-- 3/15/2012 12:26 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012

www.BellwetherCap.com REAL ESTATE Vision. Knowledge. People.

The 100-acre Lakes of Orange in With a portfolio exceeding $4.2 billion, we Orange Village are a boutique-style commercial real estate will feature a firm focused on financing income properties one-acre lake, including Multifamily, Industrial, Retail, Office, gazebo, stream Hospitality, Self-Storage, and Parking Facilities. and trail. In fact, we offer the deepest pool of lending PHOTO PROVIDED relationships within in Ohio including FHA, Freddie Mac, Life Insurance Companies, FNMA, CMBS Lenders and Banks. Vision. Knowledge. People. Developers build with green in mind FOR MORE INFORMATION, CONTACT:

Jim Doyle, Jr., Principal, Director Ross Halloran, Senior Vice President midst of developing the nearly are asking for green features, 216-820-4502 | [email protected] 216-820-4528 | [email protected] Planned Lakes of Orange 100-acre Lakes of Orange site into including appliances, water-saving development to include a green development with 156 toilets and other smaller-ticket homes and a 30-acre conservation items. 30-acre conservation area with a one-acre lake, gazebo, “There is so much emphasis on stream and walking trail. green now, if (homeowners) are at area, green residences Kertes president Randy Kertesz all thinking green, they’ll be asking said his company is “shovel ready” for green — but it’s not a top By KIMBERLY BONVISSUTO and taking reservations, anticipating priority for them,” Mrs. Sexton [email protected] breaking ground before the end of said, adding that homebuyers are this year. focused on finding a home they ustainable luxury. Mr. Kertesz said what makes his comfortably can afford. Lakes of Orange development Not only is that the tagline Planting the seeds for the planned Lakes of unique to Ohio is that the homes Orange community in won’t be the only things built to the Meanwhile, municipalities and SOrange Village, it’s an example of National Green Building Standard, cities are creating the framework the way some residential building is a rating system developed by the for encouraging green residential trending in Northeast Ohio and National Association of Home building within their communities. around the nation. Builders; the land will be developed Orange Village, for one, imple- Many builders and developers in a sustainable way as well. mented a voluntary sustainable who survived the economic downturn Underground improvements building award program — the of the past few years are embracing and paving are designed to protect Orange Goes Green Certification green technologies and standards, the land’s natural features, including Program — that provides guidelines especially as they encounter a wildlife, water streams and tree and sets standards for builders and more sophisticated and educated root systems. developers. Building commissioner consumer looking for affordable In the market Louis Hovancsek said three builders, green living. including Kertes, are working on “They want to know the efficiency Mr. Kertesz, who holds the complying with the certification. of the furnace, the type of hot water Certified Green Professional desig- Jud Kline, senior director of heater, and they are fully aware of nation from the National Associa- Herschman Architects in War- the plumbing system,” said Enzo tion of Home Builders and is a rensville Heights and president of Perfetto, owner of Enzoco Homes LEED (Leadership in Energy and AIA Ohio, a society of the American LLC of Munson Township and Environmental Design)-accredited Institute of Architects, said the president of the Home Builders professional, anticipates two to Orange Goes Green initiative grew Association (HBA) of Greater three phases in his development. out of an amalgamation of various Cleveland. “They are coming to the He said building to green standards green building standards run table knowing how to have a good, adds $5,000 to $10,000 for the average through the local community’s intelligent dialogue.” home. value system. In part to appeal to this type of The lots in Phase I will go for “Buildings contribute about 60% homebuyer, Cleveland-based $125,000 to the upper $150,000s, to the carbon footprint,” Mr. Kline Kertes Enterprises Inc. is in the while housing prices will start in said. “If we’re going to reduce that the low- to mid-$400,000 range. contribution, we have to really The Home Builders Associa- focus on building.” tion’s Mr. Perfetto said the green Mr. Kline’s firm, Herschman building trend in Northeast Ohio Architects, also has experience was helped along by the foreclosure working with another Northeast crisis. He said the efficiencies Ohio city on residential green available in new home construction building standards. — much of it green technology — It was hired by South Euclid to far outweigh the initial savings of coordinate the green strategy for buying a foreclosed or vacant the city’s Green Neighborhood home, or benefiting from a short Initiative, financed by competitive sale. grant funds from the U.S. Depart- “Consumers are finally realizing ment of Housing and Urban that if I buy an existing home I can Development’s Neighborhood throw in new carpet, but I’m still Stabilization Program and the First dealing with the old windows, Suburbs Development Council’s furnace and insulation,” Mr. Vacant Residential Property Fund. Perfetto said, adding that most That program has two main builders have an encouraging sales components — the purchase, outlook going into 2012. rehab and resale of vacant, fore- Jean Sexton, executive officer of closed and abandoned homes, and the North Coast Building Industry the creation of community gardens Association based in Lorain County, and green space. said while higher-end homes may The initiative rehabilitates homes incorporate the benefits of green under green building methods and building, builders marketing universal design features. The city homes in the $200,000 or lower is about halfway toward its goal of price range aren’t going green. buying 10 homes to rehab; three of She noted that buyers in that the homes have been sold and lower price range aren’t looking for profits were funneled back into the a LEED-certified home, but they program for future purchases. ■ 20120319-NEWS--17-NAT-CCI-CL_-- 3/16/2012 10:29 AM Page 1

MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 REAL ESTATE

Steve Strnisha, a finance expert who specializes in complex urban Akron: Realty partner could open financial doors projects and is now a senior executive with the Cleveland continued from PAGE 15 to outline site-specific projects is the city beyond UPA borders. capability for it. Here is KUD, which International Fund, which provides that UPA and potential developers organized as a community devel- A little bit of help has financing relationships and can international investors with U.S. opment corporation that can own may want to acquire additional provide guarantees that will help financing opportunities, said the and redevelop property. land to the sites. Despite this generally being one secure financing.” KUD association would open UPA’s staff leader is Eric Anthony Dr. Johnson said one reason he of the least opportune times to For KUD, the Akron alliance lenders’ doors. Johnson, a New Orleans native with made Akron his next stop after launch realty programs of scope, offered an opportunity to work “A construction cost and guarantee a doctorate in urban affairs and Cleveland after touring the UPA Dr. Johnson and his staff are collaboratively to produce projects is absolutely critical to any project public policy and a résumé ranging geography was the makeup of its undertaking no little plans. which may involve local developers of scale from a lenders’ perspec- from economic development in the 17-member board. UPA has selected as its realty and others, said Tom Winter, KUD tive,” Mr. Strnisha said. “It shows city of Charlotte, N.C., to the realty Not only does it include Akron development partner KUD Inter- senior vice president. He said KUD there is a commitment to bring in manager for the aborted lakefront Mayor Donald Plusquellic and national LLC, a United States real is looking at ground-up construction a project at a given price. You development plan of the Cleveland- Summit County Executive Russell estate development arm of the for the four opportunities Dr. Johnson don’t want to have to go to the Cuyahoga County Port Authority. M. Pry, but Thomas Strauss, Summa Japanese construction and realty discussed, and some enlist local firms. developer or the developer’s part- Rather than head to the Sun Belt Health System’s president and conglomerate Kajima Corp., a Japan- At least one expert sees the KUD role ners to come in with more money if after Cleveland abandoned that CEO, Luis Proenza, president of ese concern that is one of the world’s as vital to the nascent efforts of UPA. it’s needed.” ■ plan, Dr. Johnson landed at UPA the University of Akron and others largest builders and developers. where he is again orchestrating a also are involved. Summa and the Dr. Johnson said KUD will help big urban development drive. University of Akron both are within UPA advance its agenda on many UPA’s turf. levels. At the get-go last month, Big plans “Communities that are organized KUD signing on helped UPA 9000 SWEET VALLEY DRIVE Just over 14 months after Dr. to reduce fragmentation will flourish broadcast through the media its Johnson came on board, significant in the future,” Dr. Johnson said. plans worldwide. News of the steps are in place to set the table for “Resources are too limited for association last October meant redevelopment, and four projects them otherwise.” mentions of the 50-block UPA that are part of a longer-term master David Lieberth, deputy mayor of plan ran in cities from New York to plan already are moving forward. Akron, said UPA’s plans are designed Chicago and Tokyo to Mumbai. Beyond describing them as so they capitalize on opportunities Part of it also is clout: KUD’s parent “mixed-use” projects — usually for both downtown and the UPA is a billion-dollar construction mixes of retail, office and residential despite the geography separating concern active in 20 countries. uses in one property — at four the two. Moreover, University of Dr. Johnson said KUD will offer undisclosed locations, Dr. Johnson Akron actions — from buying the up a project manager to assist UPA would offer no more detail. old Polsky’s department store in on each development project, and He does point to the wish list, the ’80s to fueling demand for new it will supplement the alliance’s though, for the four projects, student-focused housing downtown limited staff of six. Moreover, KUD which UPA wants up by 2016 — — have helped bridge the gap will provide financing and con- 803 residential units, at least one between the two. struction guarantees for projects hotel and nearly 113,000 square Mr. Lieberth said Mayor UPA undertakes in its district. ‡ $9$,/$%/()256$/( )RUPRUHLQIRUPDWLRQFRQWDFW feet of retail and 260,000 square Plusquellic, who was in China last “A local developer may have a ‡ 6))UHHVWDQGLQJ%XLOGLQJLQ -26(3+-0$57$129,&  feet of office space. week, supported the UPA plan with nice plan for a project,” he said, 9DOOH\9LHZ MRVHSKPDUWDQRYLF#RPFOHFRP One reason Dr. Johnson declines a big condition: It had to impact “but may not have the financing ‡ $FUHV ‡ 'RFN'ULYH,Q'RRUV ‡ ¶&OHDU+HLJKW&DU3DUNLQJ ‡ (DV\$FFHVVWR5RFNVLGH5RDG Brokers: Receivership work has helped ZZZRVWHQGRUIPRUULVFRP

continued from PAGE 15 rate services practice was Ostendorf- together record years — primarily Morris’s busiest segment, Mr. Coyle by their agents slugging it out harder said, with 11 people pursuing deals than in the past, Cresco and Marcus internationally last year and just & Millichap among them. More added one agent, a prior intern. typical is the way Geoffrey Coyle, At Chartwell Group of Cleveland, managing director of the Ostendorf- traditional work representing Morris Co. brokerage, puts it. tenants has been supplemented by “We made money in 2010 and an aggressive auction practice so made more in 2011,” Mr. Coyle said, that all 15 of its agents are trained in though he declined to disclose auctions or supporting them. David revenue figures. “I attribute that to Wagner, Chartwell’s co-managing the changed market, low interest director, said of the head of its rates and hard-working brokers.” auction unit, “We give Gordon David Browning, managing Greene big hugs every day.” Real Estate/Construction director of the Cleveland-Akron Another niche reflecting the down- offices of CBRE, said he is “bullish turn is receivership work, managing Property is as unique as its owner. Our clients benefit from our depth of about 2012.” properties for the courts or lenders industry knowledge and our commitment to offering personalized attention That says a lot because the and perhaps disposing of them. office’s revenue climbed 10% in Chartwell, Mr. Wagner said, strongly and insightful solutions. The knowledge of a trusted advisor can make the 2011, and brokerage revenue alone pursues such game; in 2005, the difference between a strong or shaky foundation. climbed 20% the same year. He brokerage did three receivership anticipates another gain this year assignments a year. Now it has 14. The Maloney + Novotny Real Estate Practice combines a wealth of experience and expects an improving market Connecting the dots with a passion for understanding the ever-changing landscape involved in to “lift all boats” in the industry. property development, ownership and management. CBRE has shifted focus from While renewed lending helped commission-oriented transactional business, Marcus & Millichap’s Mr. work to being a service provider. Glass said the passage of time For example, it manages some helped the firm, which specializes 13 million square feet of office space strictly in buying and selling com- in Northeast Ohio and does a variety mercial properties and eschews of work for corporations. That leasing or management. He said ■ Cleveland 216.363.0100 meant half the business in the office his 15 agents here — soon to be 16 ■ Canton 330.966.9400 in 2011 was contractual — and — survived through tenacity and

recurring business — and just 50% “staying engaged” with prospects. ■ Elyria 440.323.3200 due to commissions. NAI Daus, the 12-agent Beach- + Business Advisors and Certified Public Accountants maloneynovotny.com Different strategies also are bearing wood brokerage, also hopes to add fruit. Corporate service practices, as many as five agents this year. which provide corporations one-stop Despite that, most brokers expect shopping for their real estate needs, their overall ranks to thin in a com- are on the grow and put local mission-based, shrinking industry brokers afield in Europe and Asia. requiring ever-new tech skills. In CBRE’s case, its corporate “Not everyone,” Mr. Glass said, services practice just added its fifth “has been able to connect all the person here. Meanwhile, the corpo- dots.” ■ 20120319-NEWS--18-NAT-CCI-CL_-- 3/16/2012 10:04 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 REAL ESTATE Incentives designed to bring residents to University Circle the participation rules to open up Group, is a Florida-based developer As more housing options are added, Greater Circle Living relaunch planned the program to more employees who has been bullish on Cleveland from the area’s institutions,” she since his first development here in By CHRISSY KADLECK couple individuals ask me about this University Circle. Those people can said. “With so many new housing the 1990s. His company developed [email protected] and I tell them, ‘You work for this qualify for a $5,000 forgivable home projects in the finishing stages in Park Lane Villa, 96 luxury apart- hospital, right? You move to the sub- loan. Employees of anchor institu- the Greater University Circle area ments that opened in University eorgene Crosby never had urbs, and you’re paying double tions, such as CWRU, the Clinic or right now, excitement about living Circle in 2008, and in June will open to be sold on University taxes plus you’ve got the commute. University Hospitals, are eligible for there is growing, and it’s a great Circle East in East Cleveland, just Circle. Here, you’ve got everything around up to $15,000 for a home purchase. time to relaunch the program.” eight-tenths of a mile from the A lifelong resident of you — you’re close to the hospital, It is marketed by University John Wheeler, senior vice president entrance of University Hospitals. GCleveland, she loved the museums, the museums, you’ve got Severance Circle Inc., administered by Fairfax of administration at Case Western “Cleveland is booming, period,” and Severance Hall, and she was Hall,’” she said. Renaissance Development Corp. Reserve University, said while not he said. “There is no asterisk after the go-to person for her colleagues Ms. Crosby is one of 20 full-time and targets seven neighborhoods: as many employees have taken that statement. We did a study last at University Hospitals when they employees at University Hospitals Glenville, East Cleveland, Little advantage of the program as they year with UCI … and it determined needed suggestions on where to who have taken advantage of the Italy, Fairfax, Buckeye-Shaker, had hoped, they will continue to there is pent-up demand for an take people visiting the city. Greater Circle Living program Hough and University Circle. support Greater Circle Living. additional 750 rental units to be It wasn’t until September 2008, through the end of 2011, said Denise Wyonette Cheairs, program Since the program’s inception, built in University Circle, you could though, that the then-57-year-old Siddiq, benefits specialist at Univer- administrator of the Greater Circle 26 CWRU employees have partici- fill them up.” bought into urban living, purchasing sity Hospitals. There have been 10 Living Program, declined to reveal pated, resulting in seven home He said the Greater Circle Living a three-bedroom home in Wood- home purchases, three exterior total participation numbers of the purchases, six home improvement/ program is attractive to developers haven, a Zaremba development in renovations and seven rental grants. program in advance of a relaunch exterior repairs and 13 rentals. and tenants looking to sign a lease. He expects 90% of the new tenants the Fairfax neighborhood. “It is an excellent benefit; those of the program that is expected to Development abounds As luck would have it, her new are 10 people who purchased happen in June or July. at Circle East will take advantage of home was in one of seven target homes who may not have been able “All of our partners believe that Chris Ronayne, president at the rental assistance option. University Circle Inc., said, “At the neighborhoods of the Greater Circle to without the help of University the program has been successful, and Better with time Living program, which launched Hospitals, so I am ecstatic about that’s why we are doing a relaunch end of the day, Greater Circle only months prior to her purchase those numbers,” she said. “Do we and improve upon it,” she said. Living is a selling point for us to Lynn Ross, executive director for and is designed to improve access want them to grow? Absolutely. Ms. Cheairs said she believes the revitalize urban neighborhoods by the ULI Terwilliger Center for to affordable housing for the 50,000 And we are always looking at ways program has been successful putting our monies where our Housing, which is based in Wash- employees in University Circle. to market the program to our helping people move to the area and mouth is. This program has helped ington, D.C., said live-near-your- The housing program, created employees so we can get even more in attracting new developments. us revitalize neighborhoods but it work programs have been gaining by a coalition of philanthropic, participation.” “The Greater Circle Living has also helped us make a market popularity since the 1990s. public and private partners in the program kicked off right before the for the developers to invest.” Ms. Ross said the Greater Circle Circle, offers financial incentives Relaunch in the works downturn in the real estate market. He said there are 180 new units Living program is exciting because it to invest in the surrounding neigh- The program is funded by the So while we’ve had dozens of of apartments that will be available includes a rental component, which borhoods with forgivable loans for Cleveland Foundation, the Kent H. participants from all of the anchor in the next four months. The three often is not included. She said the home purchases, rental assistance Smith Charitable Trust and the institutions, we’d like to see more projects include: Uptown, 101 programs can be effective in stabi- and exterior home renovations. Surdna Foundation, as well as people take advantage of the modern apartments at Euclid lizing work forces and neighbor- Ms. Crosby’s well-timed purchase anchor institutions such as Case program,” said India Pierce Lee, Avenue and Mayfield Road, hoods, but can take five to seven netted her an unexpected $15,000 Western Reserve University, Cleve- program director for neighborhoods, anchored by MOCA Cleveland and years to achieve “concrete results.” in forgivable loans as long as she land Clinic, Cleveland Museum of housing and community develop- the Cleveland Museum of Art; “It is typically a slow build,” she continues to live in the home and Art, Judson at University Circle ment at the Cleveland Foundation, Hazel 8, which will be about 60 said. “These aren’t programs where work in University Circle for five and University Hospitals. in an email statement. luxury apartments; and Circle East, there is a quick fix for communities years after the loan’s closing. Greater Circle Living is open to “With that in mind, the Cleveland 20 new townhome-style apartments or where you are going to see results “I would recommend this pro- full-time employees of any of the Foundation is working with our by developer Wesley Finch. the next year, what you see are gram to anyone, and I have had a 35-plus nonprofit institutions in partners to encourage changes to Mr. Finch, chairman of The Finch results over time.” ■

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Cleveland, OH Chardon, OH Apartments Shopping Center 64 Units 37,813 SF $1,600,000 $5,500,000 Agent: Ben Baker Agents: Scott Wiles, Craig Fuller, Erin Patton To Access the Investment Market, Contact the Market Leader. Results. Period. Michael L. Glass Vice President/Regional Manager Reminger.com - 216.687.1311 Cleveland Office (216) 264-2050 [email protected] Offices Nationwide www.MarcusMillichap.com Akron | Cincinnati | Cleveland | Columbus | Sandusky | Toledo | Youngstown | Ft. Mitchell | Lexington | Louisville 20120319-NEWS--19-NAT-CCI-CL_-- 3/16/2012 10:05 AM Page 1

MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 SHOPPING CENTERS RANKED BY TOTAL RETAIL AREA

Shopping center Address Total retail area Total number Year Leasing agent Rank Phone/Website (square feet) of stores(1) Anchor tenants opened Owner Phone number Westfield SouthPark 1 I-71 & Route 82, Strongsville 44136 1,626,198 189 Dillard's, Sears, JCPenney, Macy's, Kohl's, 1996 Westfield Corp. Teri Robson (440) 238-9000/www.westfield.com/southpark Dick's Sporting Goods, Cinemark Theatres (440) 734-6304 Eastwood Mall 2 5555 Youngstown-Warren Road, Niles 44446 1,459,168 210 JCPenney, Macy's, Dillard's, Target, Sears, 1969 The Cafaro Co. Mark Marini (330) 652-6980/www.cafarocompany.com Old Navy, food court, Ollie's, DFW (330) 747-2661 Westfield Great Northern 3 4954 Great Northern Mall, North Olmsted 44070 1,228,969 143 Dillard's, JCPenney, Macy's, Sears, Dick's 1976 Westfield Corp. Marjorie Shaw (440) 734-6304/www.westfield.com/greatnorthern Sporting Goods (440) 734-6304 Great Lakes Mall 4 7850 Mentor Ave., Mentor 44060 1,202,370 146 Dillard's, JCPenney, Macy's, Sears 1961 Simon Property Pervis Bearden (440) 255-6900/www.shopgreatlakesmall.com Group Inc. (317) 263-7608 Southern Park Mall 5 7401 Market St., Youngstown 44512 1,156,635 120 Dillard's, JCPenney, Macy's, Sears, 1970 Simon Property Jeff Rudd (330) 758-4511 /www.simon.com Tinseltown Cinema Group Inc. (317) 685-7339 Midway Mall 6 3343 Midway Mall, Elyria 44035 1,105,000 141 Best Buy, JCPenney, Macy's, Sears, Staples 1967 NA Gary McEnteer (440) 324-6610/www.midwaymallshopping.com (440) 324-6763 Sandusky Mall Complex JCPenney, Macy's, Sears, Elder-Beerman, 7 4314 Milan Road, Sandusky 44870 1,093,871 113 T.J.Maxx, Best Buy, Old Navy, Dick's Sporting 1976 The Cafaro Co. Mark Marini (419) 626-8575/www.cafarocompany.com Goods, Target, Cinemark (330) 747-2661 Crocker Park Carla Lally, (216) 8 Crocker & Detroit Roads, Westlake 44145 1,000,000 NA Dick's Sporting Goods, Barnes & Noble, H&M, 2004 Crocker Park LLC 292-0248; Jeremy Bates, (216) 464-2860/www.crockerpark.com Urban Outfitters, Arhaus (216) 292-0239 Parmatown Mall 9 7899 W. Ridgewood Drive, Parma 44129 992,000 149 Macy's, JCPenney, Walmart, Dick's Sporting 1960 Parmatown One LLC David Krone (440) 885-2090/www.parmatown.com Goods (216) 464-5900 x235 Beachwood Place 10 26300 Cedar Road, Beachwood 44122 975,000 99 Dillard's, Saks Fifth Avenue, Nordstrom 1978 General Growth Rob Clarke (216) 464-9460/www.beachwoodplace.com Properties Richmond Town Square 11 691 Richmond Road, Richmond Heights 44143 877,450 83 JCPenney, Regal Cinemas, Macy's, Sears 1966 Simon Property Tony Pestyk (440) 449-3200 /www.shoprichmondtownsquare.com Group Inc. (440) 449-3201 Chapel Hill Mall 12 2000 Brittain Road, Suite 830, Akron 44310 838,092 98 JCPenney, Macy's, Sears 1966 CBL & Associates Sherry Rawson (330) 633-7100/www.chapelhillmall.com Properties Inc. (423) 553-8735 Ashtabula Towne Square(2) 13 3315 N. Ridge Road E, Ashtabula 44004 827,075 84 Sears, JCPenney, Kmart 1992 Cabot Investment Rudy McCarthy (440) 998-2020/www.ashtabulatownesquare.com Properties LLC (814) 532-6112 The Strip Carla Lally, (216) 14 I-77 & Portage Road, North Canton 44720 800,000 30 Lowe's, Walmart, Giant Eagle, Best Buy, 1996 The Strip Delaware 464-2860; Lidia Richani, (216) 464-2860/www.starkenterprises.com Books A Million, Bed Bath & Beyond LLC (216) 292-0265 Westfield Belden Village 15 4230 Belden Village St. NW, Canton 44718 798,893 100 Dillard's, Sears, Macy's 1970 Westfield Corp. Hunter Lawrence (330) 494-8815/http://westfield.com/beldenvillage (440) 734-6304 Southgate USA Shopping Center Home Depot, Giant Eagle, Southgate Bowling 16 20950 Libby Road, Maple Heights 44137 788,130 75 Lanes, Cuyahoga County Department of 1955 SG USA Ltd. Tim Soeder (216) 663-3850/www.southgateusa.com Human Services (330) 374-6350 Summit Mall Tim A Hill, (330) 867-6997; 17 3265 W. Market St., Akron 44333 766,324 120 Dillard's Men and Home, Dillard's Women, 1965 Simon Property Pervis Bearden, (317) (330) 867-6997/www.simon.com Macy's Group Inc. 263-7608 Crossings at Golden Link 18 Aurora Road & state Route 8, Macedonia 44056 725,000 NA Target, Lowe's, Giant Eagle, Great Escape 2004 RLP Group NA (216) 464-5900/www.thekronegroup.com Southland Shopping Center Giant Eagle, Burlington Coat Factory, Marc's, 19 Pearl Road & W. 130th St., Middleburg Heights 44130 700,369 38 BJ's Wholesale Club, Jo-Ann Fabric and Craft, 1950 Brixmor Property Ron McGehee (888) 457-2877/www.brixmor.com Marshalls, Office Max, Petco Group (513) 341-1317 Steelyard Commons 20 3447 Steelyard Drive, Cleveland 44109 696,142 36 Walmart Supercenter, The Home Depot, 2007 First Interstate Randy Goodman (216) 381-2900/www.first-interstate.com Target, Best Buy Properties Ltd. (216) 381-8200 The Cascades of Brimfield Walmart Supercenter, Lowe's, Kohl's, 21 3975 Cascades Blvd., Kent 44240 650,000 25 Marshall's, Applebee's, Dollar Tree, Home 2006 3D Cascades LLC Carla Massara (216) 896-5609/www.kowitpassov.com Savings & Loan (216) 896-5609 University Square 21 Warrensville Ctr. Rd. & Cedar Ave., University Hts. 44118 650,000 10 Target, Macy's, Jo-Ann Superstore, Pier I, 2003 Inland US Brian Dorr (216) 297-9510/www.inlandgroup.com T.J.Maxx & More Management LLC (216) 297-9510 Severance Town Center Pine Tree 23 3640 Mayfield Road, Cleveland Heights 44118 633,000 32 Walmart, Home Depot, Dave's Markets, Regal 1963 Commercial Realty Randy Markowitz (216) 381-5762/www.pinetreecommercial.com Cinemas LLC (216) 496-4445 Avon Commons 24 35974 Detroit Road, Avon 44011 631,646 40 Heinen's, Home Depot, Kohl's, Target, Costco 2000 First Interstate Steve Altemare (216) 381-2900/www.first-interstate.com Properties Ltd. (216) 381-8200 Great Northern Plazas Home Depot, Marc's, Jo-Ann Fabric and Craft, 25 25859 Great Northern Shopping Center, North Olmsted 44070 627,060 NA Best Buy, Bed Bath & Beyond, K & G NA DDR Corp. Rob McGovern (216) 755-5500/www.ddr.com Menswear, DSW, PetSmart, Big Lots (216) 755-6435 Legacy Village 26 25001 Cedar Road, Lyndhurst 44124 595,942 56 Dick's Sporting Goods, Giant Eagle, Crate and 2003 Legacy Village Marcie B. Gilmore (216) 382-3871/www.legacy-village.com Barrel, Nordstrom Rack Investors LLC (216) 381-2900 Belden Park Crossings Target, Kohl's, Dick's Sporting Goods, Value 27 5496 Dressler Road, North Canton 44720 593,610 NA City Furniture, Jo-Ann Fabric and Craft, DSW, 1997 DDR Corp. Rob McGovern (216) 755-5500/www.ddr.com hhgregg, PetSmart (216) 755-6435 Marketplace at Four Corners Kohl's, Marshalls, Walmart Supercenter, 28 Aurora Road & Marketplace Drive, Bainbridge 44202 579,488 NA Babies R Us, Famous Footwear, Michaels, 2002 MPG Property Group Brad Kowit (561) 629-5520/www.mpgpropertygroup.com Dick's Sporting Goods, Big Lots (216) 514-5100 Ridge Park Square 29 I-480 and Ridge Road, Brooklyn 44144 563,672 46 Lowe's, Marc's, T.J.Maxx, AMC Theatre, Bed 1987 Ridge Park Square Shannon P. Blackwell (216) 464-5255/www.zeislermorgan.com Bath & Beyond, Michaels LLC (216) 464-5256 Macedonia Commons 30 8210 Macedonia Commons Blvd., Macedonia 44056 543,987 NA Walmart, Home Depot, Kohl's, Hobby Lobby, 1994 DDR Corp. Peter LaRose (216) 755-5500/www.ddr.com Cinemark 15, PetSmart, Champs Sports (216) 755-6580 Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Information may be from www.costar.com. (2) Information is from www.costar.com and/or shopping center and management company websites. 20120319-NEWS--20-NAT-CCI-CL_-- 3/16/2012 1:45 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 19 - 25, 2012 Training: Governor’s ideal programs driven by demand

continued from PAGE 1 for 2012, an effort to encourage want from government educational involved. “We can fill our lower- “We found we could get reimburse- businesses and public job-training and work force programs. “Oftentimes, we’re all so busy level jobs in this economy. ment for on-the-job training,” Mr. agencies to work together to have That plan reviews nearly every doing what we have to do that we Where we do need the Sooy said. A federal On-the-Job the right educational programs in aspect of the education and training don’t spend the time doing what Training National Emergency Grant place when the demand for training process, from kindergarten through we really need to do,” said Kevin focus from government, would cover the cost of training arrives. workplace training programs for Goodman, a partner and managing it’s on capacity and the new hire. “That was great for the unemployed. At the same time, director of business development education.” us because he did need some addi- Programs under review the governor created the Executive at BlueBridge Networks LLC, a tional skills.” In his “Mid-Biennium Review” Workforce Board, which will bring Cleveland firm that provides data – Judy Murphy, vice president of human resources, Southwest Many, including Gov. John Kasich, released last week, the governor businesspeople into the state work center services. “Oftentimes affecting General Health Center believe the state’s educational included a pledge to bring the state’s force planning process to help change is only lip service because system and job-training programs 77 work force programs — now create a unified job training budget people are busy.” haven’t been as successful as they scattered across 13 state agencies and measure the success of state Mr. Goodman is a member of the officers who are working to close the need to be in turning out job candi- — under one umbrella in the programs. board of the Regional Information gap between the low supply and high dates with the skills desired by governor’s new Office of Workforce The governor believes the state Technology Engagement, or RITE, demand for IT workers in Northeast businesses. Transformation. The goal is to be needs to hear more from employers Board, a nonprofit group created in Ohio. So Gov. Kasich is making a trans- more demand-driven, which is about what they need, and while it 2009 of business information tech- “This particular group shows a formation of the state’s work force government-speak for doing a better hasn’t been easy, the business nology leaders. Many members are serious commitment on the part of development programs a top priority job of listening to what businesses community is beginning to get more chief information or chief technology employers like Cleveland Clinic and Eaton Corp. to make (talent) available here” in Northeast Ohio, Mr. Goodman said. “We’re synced with what the state is doing,” said Courtney DeOreo, the RITE Board’s project administrator. But she said her group sees a need for the state to go beyond its short- term interest in how many people are being trained, to determine what is the capacity to train according to the needs of the employers and whether or not people are getting jobs related to their training. “We’re also looking holistically at the emerging work force,” she said. “(Employers) want the candidate with the blend of technical and lead- ership skills.” Beyond IT

The health care industry also is getting better organized and raising its voice. A group of health systems in the region in 2008 created the Northeast Ohio Health Science and Innovation Coalition to focus their work on improving the health care work force. Members include Cleveland Clinic, Louis Stokes Cleveland VA Medical Center, MetroHealth System, Southwest General Health Center, Summa Health System and Univer- sity Hospitals. This group, too, is encouraged by what Gov. Kasich is trying to do. “We see a place (for our employers) at the governor’s Executive Workforce Board,” said Allison Motz, executive director of the organization. “We hope it’s really employer-driven.” Ms. Motz said the hospitals see their greatest need as finding training dollars to move people now in entry- level jobs up the ladder, freeing those lower-level jobs up for people currently unemployed but who are ready for a first job in a hospital. There also is a big need in health care to fill the pipeline with people trained to be nurses. Judy Murphy, vice president of human resources at Southwest General Health Center in Middleburg Heights, pointed to the Clinic’s announcement last week of a job fair because it needs to hire 600 regis- tered nurses. “We can fill our lower-level jobs in this economy,” she said. “Where we do need the focus from government, it’s on capacity and education.” She said the region and state need more nursing programs, whether they are two-year or bachelor’s degree programs. “This isn’t a new problem,” she said. “We had a little bit of a reprieve because many of the baby boomers didn’t retire because of the economy. But as the economy picks up and people retire, it will surface again as a huge problem.” ■ 20120319-NEWS--21-NAT-CCI-CL_-- 3/16/2012 2:34 PM Page 1

MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 WXZ after Patents: Engineer guides next generation of inventor

continued from PAGE 1 fascinated him, even though Dr. neer who started working at GE His stack of patents likely will East Side Even so, his innovations have Nerone, then a student at St. Edward Lighting as an intern three years ago. continue to grow, but not by leaps made a huge impact on GE Lighting. High School, didn’t understand the Dr. Nerone gives her guidance on and bounds: Dr. Nerone is on the For instance, many of GE’s linear principles behind them. how to approach problems but verge of retiring — sort of. He plans RTA site fluorescent lamps still use the Ultra- It’s important, he said, that kids doesn’t solve them for her, she said, to start working just two or three Max-brand ballast that Dr. Nerone are given a chance to work on projects adding that he has taught her there days a week starting in May, just developed more than a decade ago. like the ones he did in Cub Scouts. is always a way to make a product after he turns 62. By STAN BULLARD The ballast contains an instant-start “You have to get them interested better, even if nothing appears to Afterward, Dr. Nerone, who lives [email protected] device adapted from technology used to the point where they have to know be wrong with it. in Brecksville with his wife, Stephanie, by GE’s compact fluorescent bulbs. how something works,” said Dr. “He’s a great teacher and a great will have more time to read books Residential and commercial That product, released in 2002, Nerone, who earned his bachelor’s, mentor, not to mention a great on his Nook and use his rowing builder WXZ Development Inc. of was more efficient, cheaper and had master’s and doctorate degrees in innovator,” Ms. Scheidegger said. machine, which he bought after back Fairview Park soon might land more fewer technical problems than electrical engineering from Cleve- Dr. Nerone, who also teaches a problems forced him to stop running. land for another project in Cleve- ballasts used in GE’s previous linear land State University. power electronics class at Cleveland But he’s not ready to retire for land’s University Circle. fluorescent ballasts, which it was State, said other people’s names are real just yet, he said, alluding to the The board of the Greater Cleveland buying from another company. Dimming the lights at age 62 listed alongside his on more than many lighting challenges he still Regional Transit Authority on Tues- A few years earlier, he developed a He does his part to educate the half of his patents, though he noted wants to solve. day, March 20, is scheduled to review new transistor for GE’s lineup of CFLs. next generation of engineers, said that he led many of the teams that “There’s no shortage of problems,” a request to sell a vacant, nearly half- The transistor not only cost less than Nina Scheidegger, an electrical engi- earned them. he said. ■ acre site at 1641 E. 118th St. to WXZ. the old one, but it was smaller and Board action will depend on if the was designed in a way that would proposed sale is approved in an stop it from shorting out. Almost all executive session for real estate prior GE-brand CFLs today use a variation to the board meeting, according to of the technology, he said. RTA spokeswoman Mary McCahon. Dr. Nerone, who describes himself The site was used long ago as a bus as an introvert, said he loves being turnaround and layover site. It’s one able to improve products that pro- of many sites that RTA wants to shed vide light — something that people because they no longer are needed, everywhere need. Ms. McCahon said. “Lighting is a very noble thing to James Wymer, CEO of WXZ, do,” he said. confirmed in an email last Friday, March 16, that WXZ is pursuing the Pack mentality parcel. He wrote that the developer sees it as a way to “continue our Like many engineers, Dr. Nerone Circle 118 strategy.” Circle 118 is WXZ’s said he spent much of his childhood industrial-designed condo and rental tearing things apart to see how they development further south at East work. But he wasn’t born with the 118th and Euclid Avenue. tinkering bug. Mr. Wymer declined to discuss The Cleveland native said it was specific plans until after RTA acts. his experience in Cub Scouts that Ms. McCahon said RTA under- sparked his curiosity in technology. stands WXZ plans a development of Every month, he and his fellow apartments and condos as part of a Scouts would get together at one of mixed-use project. their homes to work on projects. Chris Ronayne, president of Uni- Maybe they’d build model airplanes versity Circle Inc., which oversees or make ash trays out of clay, Dr. development plans and management Nerone said, laughing about how of the area, said UCI wants to see the that would never be allowed today. site developed and encouraged RTA to But it was when they built simple sell it when it decided it was of no use. crystal radios that his interest in “We see it as a high-density residen- engineering really took hold. He was tial development with as many as 20 amazed that by assembling a few units,” Mr. Ronayne said. “It would simple parts he could listen to the meet demand of graduate students, radio through a pair of headphones faculty and eds and meds workers in the garage of his home on West for housing near work at the circle.” 114th Street. Such a project would cost more than “I could pick up three or four $2.5 million to develop using industry stations with it,” he said. “I had to estimates for a project of that scope. ground the thing to the water pipe.” RTA declined to say how much the That interest in radios evolved developer agreed to pay for the prop- into an interest in transistor ampli- erty, but RTA’s website and an online fiers, which in turn led him to a GE listing on LoopNet say the parcel car- manual describing how to use the ries an asking price of $165,000. ■ company’s transistors. The diagrams

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Volume 33, Number 12 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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laborate. NorTech eventually might nia handled its shale gas drilling Shale: push for environmental regulations boom, which started earlier. Group already focused on clean water that would provide opportunities for One person they talked to was those companies, Dr. Clayton added. Steve Forde, vice president of policy continued from PAGE 1 underground shale rock formations. the market for such technologies, as The nonprofit also might draft and communications for the Mar- also plans to help area companies Plus, the rising interest in shale gas well as the competitive landscape. a road map designed to help the cellus Shale Coalition of Canons- that are developing technologies is one reason why NorTech has The road map will focus on tech- region capitalize on the demand for burg, Pa. related to shale gas. increased its focus on clean water nologies that can clean water tainted technologies related to extracting and The Youngstown native said it is “No one group is poised to do what technologies, said vice president by industrial processes and those processing shale gas, Mr. Karpinski “critical” that Ohio prepare its needs to be done in Ohio,” he said. Byron Clayton, who leads NorTech’s that can help manage storm water, said. There are opportunities for firms work force and supply chain for the effort to build a flexible electronics said Dr. Clayton, who added that Drawing the roadmap that make advanced materials and in- upcoming increase in shale gas cluster in Northeast Ohio. Oil and gas the focus on water technologies dustrial control systems, he said. drilling. Pennsylvania could have NorTech’s shale-related work companies use a high-pressure came about partly because of rising done a better job on the work force already has begun. The organization mixture that typically consists of regional interest in protecting and Learn from experience front, he said: The group last year is one of several working with Jobs water, sand and chemical additives to maximizing the use of Northeast For now, though, the main goal of did a survey showing that seven of 10 Ohio — a nonprofit that last year took fracture shale rock formations and Ohio’s abundant freshwater resources. NorTech’s shale gas effort is to help shale gas jobs in the state are filled over many of the state’s economic extract the gas. Most of the water that The road map isn’t done, but Dr. local suppliers and workers benefit by people from Pennsylvania. The development duties — to find ways comes out during and after the Clayton said he already knows of from the anticipated drilling boom, ratio was much lower back in 2008, to help Ohio companies provide the process is treated by companies like many local companies and organi- which could generate anywhere from he estimated, adding that he didn’t products and services that the oil and ABSMaterials Inc. of Wooster. zations with expertise in cleaning 20,000 to 200,000 jobs over the next have figures for previous years. gas companies will need. NorTech is in the process of water.“We know about cleaning up few years, depending on the study. Likewise, if Ohio wants to get the NorTech has started facilitating putting together a road map that industrial waste out of water,” he said. For instance, on behalf of Jobs- most out of the anticipated shale meetings with colleges and career will detail which companies and Once the road map is complete, Ohio, NorTech last week led a group gas boom, it will need to get orga- centers interested in educating peo- organizations in the region already NorTech will organize a series of of several organizations to Washing- nized, Mr. Karpinski said. ple to fill jobs related to shale gas, a have expertise related to clean water meetings between stakeholders to ton County, Pennsylvania, to talk to “It’s not just going to happen,” he name for the gases trapped below technologies, and it will describe inform them and get them to col- people there about how Pennsylva- said. ■

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MARCH 19 - 25, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Ohio tax laggards put filed through the Ohio Business Gateway. who, like Mr. Cachat, works from home. MARCH 12 – 18 For more information, visit www.tax.ohio Now, as the company’s vice president of amnesty offer to good use .gov. —Michelle Park business development, Mr. Cachat said he’s The big story: Existing investors in ViewRay ■ Between Oct. 1, when the state rolled out happy to be part of a capable executive team Inc. pumped another $16 million into the med- its first use tax amnesty program, and March Overseas investors don’t see as opposed to trying to start a company ical imaging company based in Oakwood Village 14, more than 900 use tax amnesty returns from scratch. to help it accelerate sales of its first product have been filed for liabilities totaling nearly value in financing Silico “I used to have to do all this by myself,” he later this year. ViewRay will use the money to $5.5 million, a Crain’s inquiry to the Ohio ■ If only he spoke Taiwanese. said. — Chuck Soder hire people in sales, marketing and service posi- Department of Taxation revealed. Silico Corp. founder John Cachat said he tions. Although one customer already is using Asked whether that’s more, less or about shut down the small business process soft- She’s trying to be a ViewRay’s MRI-guided radiation therapy system what the state expected, department ware company last fall after the company’s for research purposes, the company is preparing spokesman Gary Gudmundson replied that Taiwanese investors had a change of heart. credit to aggregators for a broader product launch. ViewRay is waiting the state had no expectation as to how many The investors originally wanted to finance ■ Many credit union executives begin their for the U.S. Food and Drug Administration to taxpayers would come forward. the Cleveland company — which aggressively days scanning various sources for industry give it approval to sell its system for use on “Unlike other amnesty programs, the competed with IQS Inc. of North Olmsted, news, but emails often are deleted and links patients. primary purpose of consumers’ use tax a business process software company not followed, meaning the information amnesty was to educate the business Mr. Cachat founded in 1988 — partly doesn’t reach its intended audience. Money talks: KeyCorp said its board autho- owners,” he said. “No revenue target was because doing so would have helped Tammy Holtzmeier would know: She’s rized a common stock repurchase program that established.” one of them get a visa to live in the the former CEO of a federally chartered clears the way for the company to buy back up Use tax is owed by Ohio indi- United States. credit union in Toledo. So Ms. Holtzmeier to $344 million of its shares. The banking com- viduals and businesses when When they lost interest has built something she believes will do a pany also announced it will evaluate an increase they do not pay sales tax on a in the visa, however, they better job of keeping executives in the loop. in the company’s quarterly common stock divi- taxable product or service. lost interest in financing CUhomepage, slated to launch in mid- dend at its regular meeting in May. Both actions Most of the 915 use tax Silico, Mr. Cachat said, April, is an aggregator of news and informa- were part of the company’s capital plan, which amnesty returns were filed elec- noting that he might’ve tion that concerns both credit unions and was submitted to the Federal Reserve. The Fed tronically, though roughly 85 paper applica- been able to convince them to stay with the banks. In essence, it pulls into one place has notified KeyCorp that it has no objections to tions were received. The man keying in company if he spoke their language. many of the pieces people use to consume the capital actions described in the plan. those paper reports said that a number of Silico had five employees in September industry news, such as publications and wid- the businesses filing are medical in nature, 2011. He shut it down shortly thereafter. gets. The site also will create content. Hire power: Cleveland Clinic will play host to including dental and medical practices and Mr. Cachat said he could have kept the “The problem that I observed was that in a nursing job fair later this month in an effort to veterinarians, Mr. Gudmundson said. company open, but he chose instead to banking, we tend to look to our left and fill current positions and “proactively (prepare) Of course, that’s a small sample of the pursue another opportunity: The CEO of look to our right and keep a very small circle for the changing landscape of the health care returns received, he noted. KeyedIn Solutions Inc. of Minneapolis for the publications that we read,” Ms. industry.” The Clinic plans to hire 600 nurses Some amnesty filers have paid their liabil- reached out to him to see if he’d be interested Holtzmeier said. “Bankers tend to read over the three-day event, March 28-30 at Cleve- ities up front, while others have arranged for in joining the company, a 1-year-old busi- banking publications, and that’s it.” land Browns Stadium. The hospital system said payment plans, Mr. Gudmundson said. ness process software and consulting firm The site is in beta stage, and more than in a news release that candidates — who must be The use tax amnesty program continues with about 60 employees. Among them is 200 testers are using it, she said. It’s devel- certified registered nurses — can apply for up to through May 1, 2013. Applications may be chief financial officer Karen Adame of Medina, oped out of Westlake. — Michelle Park three positions within the system and, if qualified, will receive contingent offers by the event’s close.

A fresh look: Kent State University plans to MILESTONE BEST OF THE BLOGS give its main campus in Kent a facelift, though the plan is a scaled-back version of a previous THE COMPANY: Walter & Haver- Excerpts from recent blog entries on Among the best-known players in the proposal that stalled because of a lack of support field LLP CrainsCleveland.com. Midwest is the CLE Clothing Co., at 342 for a student fee that would have financed much Euclid Ave., whose shirts and other gear aim of it. University trustees authorized the issuance THE OCCASION: Its 80th anniversary to instill pride in Clevelanders. of $170 million in general receipt bonds — about Another good reason “Its collection, sold online and in two $40 million less than the bond sale originally One of downtown Cleveland’s longtime to call NE Ohio home stores, includes its basic CLE T-shirt as well institutions, Walter & Haverfield LLP, this year as men’s briefs with the Ohio map,” proposed in late 2009 — to finance the construction ■ initiative. A student fee is not part of the new plan. marks eight decades of practicing law in Ohioans pay among the lowest auto TheAtlanticCities.com reported. Northeast Ohio. insurance rates in the country. A slideshow listing some of the site’s Ready for R&D: Parker Hannifin Corp.’s In 1932, recent law school graduates Paul Forbes.com noted that a just-released favorite T-shirts included one from CLE Parflex Division in Ravenna could receive a $2.3 W. Walter and D. Rusk Haverfield met at an study from Insure.com finds Ohioans on Clothing that lists city names in striking million state grant that it would use to consoli- Ohio Bar Association meeting. Soon after, average pay $1,099 a year to insure their typeface: London, Paris, Cleveland, New date the division’s research and development in they joined fellow attorney Joseph Poe to cars, the seventh-lowest rate nation- York, Barcelona. the city. The Ohio Third Frontier Commission open Walter, Haverfield and Poe in the wide. (Maine is cheapest, at $889.) Another shirt featured in the will award the money if Parker Hannifin makes Leader Building. Louisiana residents pay the slideshow, from Jupmode in Toledo, an official commitment to move forward with The firm became involved in municipal, most, at $2,536 a year. contained the following simple, but plans to create the Parflex Advanced Polymer county, state and national government law The website reported that while effective message: “You will do Research and Manufacturing Innovation Center. work — a practice that car insurance costs “are largely better in Toledo.” Parker Hannifin estimates that the consolidation remains strong to this day, based on a motorist’s driving would create 34 jobs in Ohio and retain 304. with representation of record and personal profile, annual It’s fair to call this numerous municipalities miles driven and what he or she a pretty good decade A deal that produces smiles: The Riverside growing steadily since drives, all else being equal car insurance ■ Co. acquired DentalPlans the early 1940s. By this rates will vary from one state to another for If it weren’t for Apple, Cliffs Natural Re- .com, a direct-to-consumer time, the firm also had a variety of socio-political reasons.” sources Inc. would have been the fastest-ris- marketing and e-com- begun its labor law repre- Amy Danise, editorial director of ing stock of the last 10 years. merce platform for dental sentation, another long- Insure.com, told Forbes.com these factors TheStreet.com said Cliffs, a coal and iron savings plans. Terms were standing practice group. Cascarilla include a state’s insurance regulations, the ore mining company, has seen its stock rise not disclosed. DentalPlans At the start of World level of competition among carriers, and 3,150% in the past decade, good for second .com, based in Plantation, War II, Mr. Poe left the firm, resulting in a severe weather that can produce above- place on the list. Only Apple, with a 4,900% Fla., provides online tools name change to Walter & Haverfield. In the average claims. increase, has been better for investors. that help consumers select the best savings 1950s, the firm moved from the Leader TheStreet.com noted that Cliffs’ stock plans for them. Building to the Terminal Tower. Cleveland makes price “has struggled over the past year as During the 1960s, it made another name a fashion statement demand for steel and iron ore in China has This and that: Investment management firm change — to Walter, Haverfield, Buescher & moderated. More recently, iron ore prices ■ Apollo Global Management LLC agreed to Chockley — to recognize the contributions T-shirts increasingly are becoming expres- have declined, which doesn’t bode well for acquire indoor water park operator Great Wolf of Loyal V. Buescher and F. Wilson Chockley sions of urban pride, according to a story margins.” Resorts Inc., which has properties in Sandusky Jr. It grew steadily, and by the end of the from TheAtlanticCities.com, and both However, it said recent policy actions in and Mason, Ohio, near Cincinnati, for about 1990s, it had more than 50 attorneys. Cleveland and Toledo are major participants. China — particularly lowering the required $700 million. … Positively Cleveland and other In 1992, both of the original founding “From Buffalo to Austin, Boston to reserve ratio for banks — “have been civic groups are about to unveil a plan aimed at namesake partners died, and as a tribute, Detroit, there are dozens of T-shirt compa- encouraging, and some think steel demand strengthening Cleveland as a tourism destina- the firm name reverted back to Walter & nies selling slogan-decorated apparel that is nearing a bottom.” The website also cited tion. The Destination Cleveland Travel + Haverfield. Today, under the leadership of appeals both to locals and to people who’ve a Merrill Lynch report stating that the Chi- Tourism Outcomes Launch will take place managing partner Ralph Cascarilla, Walter & moved away,” the story noted. nese government “could soon announce March 27 at the House of Blues. Haverfield has a roster of 50 attorneys in But beyond showing support, urban water infrastructure projects, rail expansions, offices at The Tower at Erieview. T-shirts also have become a ticket to entre- nuclear plants, and other energy-related For information, visit www.WalterHav.com. preneurship. projects” — all of which are steel-intensive. 20120319-NEWS--24-NAT-CCI-CL_-- 3/16/2012 1:43 PM Page 1