Hyland to Take on Debt to Pay Shareholders Planned $131M Dividend Distribution Signals Investor Confidence in Westlake Software Firm

20101213-NEWS--1-NAT-CCI-CL_-- 12/10/2010 1:17 PM Page 1

Vol. 31, No. 49 $1.50/DECEMBER 13 - 19, 2010

Hyland to take on debt to pay shareholders Planned $131M dividend distribution signals investor confidence in Westlake software firm

By CHUCK SODER credit rating reports issued by [email protected] Moody’s Investors Services and Standard & Poor’s Ratings Services. Hyland Software Inc. plans to Transactions in which a company take on $225 million in debt that it takes on debt to pay shareholders would use to fund a $131 million were rare during the worst of dividend payment to shareholders the economic downturn but have and to refinance existing loans. grown in popularity over the past The Westlake-based document few months, particularly among management software company companies owned by private equity plans to secure a $205 million firms. Thoma Bravo, a private equity senior secured term loan that would firm with offices in Chicago and San be due in 2016 as well as a $20 Francisco, bought a majority stake million secured revolving credit in Hyland Software in mid-2007. facility due in 2015, according to See HYLAND Page 22 INSIDE 12 Days of a Cleveland Christmas You need some serious cash to afford all the gifts of the 12 Days of Christmas, Cleveland-style. Following in the spirit of GETTING LOADED the annual PNC Christmas Price Index, we determine how much various Cleveland-centric gifts would cost you, from Browns tickets to rock stars and beer. Check out the Port officials take a shot at diverting some imported localized lyrics and our gift list on Page 3. liquor shipments from East Coast to Cleveland

By JAY MILLER A spokeswoman for the Ohio Nonprofits keep fingers [email protected] Division of Liquor Control said rohibition-era bootleg- her agency convened a meeting crossed through holidays gers used to “import” in Columbus on Oct. 20 to open Canadian whiskey from the discussion with spirits Organizations close in on fundraising goals importers about the feasibility across Lake Erie under By TIMOTHY MAGAW last few years to continue to loosen Pcover of darkness to speakeasies. of rerouting shipments of [email protected] over the holiday season. Many raise scotch, vodka and other a large chunk of their revenue — Now, the Cleveland-Cuya- The holiday months are a key some as much as 50% — during the hoga County Port Authority liquors. The shipments, now fundraising period for many of months around the holidays, and and International Longshore- received at East Coast ports, Northeast Ohio’s nonprofits and they’re ramping up their marketing could be sent up the St. charities, and so far this year, many efforts. men’s Association want to — but not all — say they’re on track “This is a very crucial time, and bring imported liquor from Lawrence Seaway to the docks to meet or exceed their targeted nonprofits are realizing they can’t of the Port of Cleveland. goals. just sit and wait for checks to come overseas into the Port of Cleve- Giving hasn’t rebounded to pre- in the mail in December,” said land in broad daylight. See LIQUOR Page 9 recession levels, but many nonprofits Kathy Bergh, program director for are counting on the fundraising vise the certificate of nonprofit and that hampered their efforts over the See GIVING Page 8

SPECIAL SECTION 49 6 SMALL BUSINESS

NEWSPAPER Entrepreneurs give back by donating a portion of

71486 01032 their revenues to charities ■ Page 13

0 PLUS: RAISES RISE ■ STONE CARVERS ■ TAX TIPS ■ & MORE 20101213-NEWS--2-NAT-CCI-CL_-- 12/10/2010 11:08 AM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010

CORRECTION COMING UP HOW WE SPEND IT A Dec. 6, Page 7 story misstated the Households in the Cleveland-Akron area spent an average of $45,844 on living percentage that independent This year’s expenses in 2009, a figure that’s 8% lower than the national average of $49,778. physicians must pay of their an- Book of Lists, The biggest area of expenditure was housing (including utilities), where the average nual cash collections to join the which publishes Northeast Ohio household spent $15,483, accounting for 33.8% of total house- 700 W. St. Clair Ave., Suite 310, Sisters of Charity Health Sys- hold spending. Northeast Ohioans allocate their dollars in eight major categories Cleveland, OH 44113-1230 tem’s physician alignment sub- Dec. 20, — representing 93% of household spending — in similar fashion to their counter- Phone: (216) 522-1383 Fax: (216) 694-4264 sidiary, Independent Physician features 44 parts nationwide, though more is spent here on health care and insurance: www.crainscleveland.com Solutions. Physician practices lists, including earning $600,000 or less must Share of household Share of household Publisher/editorial director: pay 7.75%, while those earning our Health Category Brian D. Tucker ([email protected]) expenditures in U.S. expenditures in NEO Editor: more than that must pay 6.75%. Care Directory, Mark Dodosh ([email protected]) and thousands Housing 34.2% 33.8% Managing editor: REGULAR FEATURES Scott Suttell ([email protected]) of contacts with area Transportation 16.3 15.3 Sections editor: Classified ...... 21-22 organizations. And on Amy Ann Stoessel ([email protected]) Food 12.9 12.5 Assistant editors: Joel Hammond ([email protected]) Editorial ...... 10 Jan. 3, Crain’s will publish Insurance and pensions 11.1 12.2 Going Places ...... 12 our 2011 Economic Sports Health care 6.1 7.1 Kathy Carr ([email protected]) Letters ...... 11 Outlook section that looks Marketing and food Entertainment 5.6 5.3 Senior reporter: List: Banks, savings at emerging sectors and Stan Bullard ([email protected]) Real estate and construction institutions...... 18, 20 issues in Northeast Ohio. SOURCE: U.S. BUREAU OF LABOR STATISTICS Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events Coordinator: Jessica Snyder ([email protected]) Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Side by side. Dirk Kruger ([email protected]) Nicole Mastrangelo ([email protected]) Dawn Donegan ([email protected]) Quarter by quarter. Business development manager & classified advertising: Year after year. Genny Donley ([email protected]) Office coordinator: Toni Coleman ([email protected]) Opportunity at every step. Production manager: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Kristen Wilson ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 $36,000,000 $42,000,000 $250,000,000 $400,000,000 $125,000,000 ([email protected]) Revolving Line of Credit Revolving Line of Credit Revolving Credit Facility Senior Notes Revolving Credit Facility Circulation manager: Erin Miller ([email protected]) and Term Loan and Term Loan Customer service manager: Lead Arranger and Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-877-824-9373 Administrative Agent Sole Lender Joint Lead Arranger Joint Bookrunner Sole Lead Arranger January 2010 March 2010 March 2010 April 2010 June 2010

Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary $200,000,000 $30,000,000 $350,000,000 $377,000,000 $110,000,000 Mary Kay Crain: Treasurer Increase and Extension of Senior Secured Revolver Revolving Credit Facility Revolving Line of Credit Revolving Line of Credit William A. Morrow: Senior Secured Revolver and Term Loan and Term Loan Executive vice president/operations and Term Loan Brian D. Tucker: Vice president Joint Lead Arranger and Joint Lead Arranger and Lead Arranger and Robert C. Adams: Administrative Agent Sole Senior Lender Syndication Agent Documentation Agent Syndication Agent Group vice president technology, circulation, manufacturing June 2010 June 2010 August 2010 September 2010 October 2010 Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: We’re committed to Ohio. That’s why we’re helping companies here navigate changing market cycles and create new Corporate circulation/audience development director opportunities for success. Our client managers are trusted partners who work with you to understand your business G.D. Crain Jr. and seamlessly deliver customized solutions based on your unique needs. From term loans through revolving credit Founder (1885-1973) Mrs. G.D. Crain Jr. lines, let us help increase your financial flexibility and drive operational efficiencies. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single Joseph DiRocco copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- 1.216.925.5396 partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, Detroit, Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136

Audit Bureau of Circulation

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2010 Bank of America Corporation. 20101213-NEWS--3-NAT-CCI-CL_-- 12/10/2010 1:39 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Contractors’ big worry still lack of work

INSIDE: Results of accounting firm school work,” said Roger Gingerich, Pending projects offer glimmer of hope for long-term construction Skoda Minotti’s annual survey of the partner-in-charge of Skoda Minotti’s real estate and construction group. By STAN BULLARD mary woe is more fundamental. That’s the verdict of the latest local construction industry. Page 19 “You’re starting to see (tax-strapped) [email protected] It’s a lack of work, and it trumps annual survey of Northeast Ohio’s municipalities cut back on capital all other anxieties — though some construction and real estate indus- business over the next year, far expenses,” he said. “In some cases, Concerns over rising health care big projects in the pipeline, such as tries by the Skoda Minotti accounting, outpacing tightened credit, which there is so much competition that expenses, taxes and other costs are the planned Cleveland casino and the business and financial advisory 16% cited as their chief woe. everyone is cutting everyone’s throat. less a worry for Northeast Ohio proposed medical mart/convention firm. It found 69% of the contractors “The only thing that people are It’s hard to make any money.” construction contractors than other center, are bolstering contractors’ who responded see a shortage of bidding on in Northeast Ohio is in business owners because their pri- long-term outlook. work as the biggest threat to their the health care industry and some See CONTRACTORS Page 19 12DAYSOFCLEVELANDCHRISTMAS Marathons’

Good lords-a-leaping: To buy your true love all the gifts in the “The Twelve Days of Christmas” economic — beginning with the partridge in a pear tree and ending with 12 drummers drumming — you’d need $23,439, or 9.2% more than last year, according to the 2010 PNC Christmas Price Index. impacts rise

The bank has priced the classic list for 27 years; this year, Crain’s Cleveland Business priced its with entries own. As it turns out, the list we penned costs much, much more, but anything for your true love — and to stimulate the economy — right? Feel free to sing along! — Michelle Park By JOEL HAMMOND [email protected] Walleye wiggling Ore boats sailing The Cleveland and Akron marathons are keeping stride with the COST: $274 COST: $300 million, to buy them new nationwide growth in running, and That’s 12 three-pounders from the lake at Operating the river-size boats, which can carry the region as a whole is benefiting. Rite Aid Cleveland Marathon offi- $7.60 a pound. 21,000 tons of cargo, costs $1,000 to $3,000 an cials last month said registrations for hour. its 2011 event — which includes a marathon, half marathon, 10K and Eleven pierogies frying kids race — were up 76% over the COST: $8 Slabs of steel same point last year. That’s a significant increase because overall partic- Most popular pierogi picks at one local COST: $2,500 ipation in 2010 rose 26% from 2009. vendor, Pierogi Palace at the West Side Mar- Assuming each slab weighs a ton. Race officials on a preliminarily ket: potato and cheese, loaded baked potato basis estimate 19,000 participants will be involved in next May’s festivities, and chicken paprikash. Browns tickets which would be a 21% increase from the 15,631 runners who raced in 2010. COST: $218 “The numbers are increasing Rock stars rocking Average ticket price is $54.51; being across the board,” said race director COST: $5 million if you book 10 Springsteens Ralph Staph. tackled by an inebriated tailgater will cost That jump includes a corresponding The Boss runs $500,000 per, while John Mayer you at least $5 more. rise in out-of-staters and people residing costs less at $300,000 an appearance, and Billy Joel outside Northeast Ohio, though race officials only could estimate those runs roughly $1 million. Malley’s sundaes figures. Non-Ohioans — including international runners — totaled COST: $12 See MARATHONS Page 11 Slyman’s slicing After all six scoops of gourmet vanilla and all COST: $81 7.5 ounces of hot fudge, redeem thyself with an Open wide: Each $9 corned beef sandwich adult membership to the The YMCA of Greater WEEK IN QUOTES packs 14 ounces on rye. Cleveland for $660 a year. “We seem to be able to Ales a-brewing Stadium Mustards hit the mark (each month), so I think COST: $20; cab ride home: $2.75 loading fee, plus $2.24 per mile COST: $6 thereafter Rather have two cases? If that amount of mustard we’re coming out of it. That’s if you pay for the individually sold Great Lakes wets your whistle, $64 buys you 24 bottles and ship- Our donors are starting bottles; buying two 6-packs would cost less per ale. ping. to increase giving or Either way, you’re further warranting the 21% year- come back from a over-year increase in Christmas Ale production. ... and a pigeon on Public Square break they’ve taken.” COST: $2, according to a pigeon dealer — Natalie Leek-Nelson, president Strudels baking and CEO of Providence House. ... or priceless or worthless, depending on your Page One COST: $84 point of view. Domestic homing pigeons, unlike the Each $12 strip at Lydia’s Hungarian Strudel feral ones we typically see, can sell for $10 to $8,000 Shop in Parma Heights is 18 inches filled with a bird. (Not a misprint. Racing the birds is apparently “I’m willing to help your choice of apple or cherry. quite lucrative.) you grow … as long as you’re willing to help SOURCES: CLASSIC SEAFOOD MARKET AND PIEROGI PALACE, WEST SIDE someone along the MARKET; CLEVELAND STATE UNIVERSITY WOLSTEIN CENTER; GREAT ALL THIS CAN BE YOURS IF THE PRICE LAKES BREWING CO.; ACE TAXI SERVICE, CLEVELAND; LYDIA’S HUNGARIAN way.” STRUDEL SHOP, PARMA HEIGHTS; LAKE CARRIERS’ ASSOCIATION, ROCKY RIVER; AMERICAN METAL MARKET; TEAM MARKETING REPORT; YMCA OF — Deb Mills-Scofield of Mills- — $305,003,205 — IS RIGHT GREATER CLEVELAND; GIANT EAGLE; KC KENNELS AND LOFTS, DAYTON. Scofield LLC of Oberlin. Page 13 20101213-NEWS--4-NAT-CCI-CL_-- 12/10/2010 3:09 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 Tech firm’s Wi-Fi antennas catch on quickly By CHUCK SODER wireless networks. encounter obstructions that alter [email protected] Hence, Novarum, which has their polarizations. The shape of the offices in Akron and California, is antennas also lets them pick up Wayne Gartin believes in MP using MP Antenna’s patented tech- signals in different places, said CEO Antenna’s products. nology as it builds out a Wi-Fi Joe Bliss. Not only is the chief operating network in Cleveland’s Ward 13, Projects such as the one in Cleve- officer of Novarum Inc. working to which includes much of the Old land represent just one area of install the North Ridgeville company’s Brooklyn neighborhood. The project opportunity for MP Antenna, Mr. antennas in the city of Cleveland and will provide free Wi-Fi to residents Bliss said. The company, founded in other large metropolitan areas, but and businesses and is expected to 2008, already sells several antennas, he uses an MP Antenna product to go live early next year. including the Trident, which consumers boost his Wi-Fi reception at home, too. “We think that these guys are can plug into a router to improve It’s easy to see why: MP Antenna’s going to give us measurably better Wi-Fi access in their homes. products provided a 20% larger performance,” Mr. Gartin said. MP Antenna also aims to win coverage area in tests Novarum ran The improvement is the result business from government agencies to determine what technology to of “multi-polarization” technology that help emergency responders use for one of its municipal Wi-Fi created by co-founder Jack Nilsson. communicate. For instance, the projects, said Mr. Gartin, whose The three-dimensional shape of state of Ohio is running tests on the company helps cities, companies the antennas allows them to pick up company’s antennas in an effort to and other groups design and install or transmit signals even if they improve its Multi-Agency Radio Communications System (MARCS), used by emergency responders from different agencies. Though still running tests, MARCS director Darryl Anderson said it appears the antenna will help the state eliminate gaps in its radio communications coverage. Mr. Ander- son said he would recommend MP Antenna products to other agencies if all goes well. “It seems like they have devised a better mousetrap,” he said. MP Antenna employs eight, though a manufacturing company Mr. Bliss owns, JBS Technologies Inc., provides MP Antenna with back-office services as well as space. Though only two years old, the company got a head start by acquiring Manatee Wireless, a descendant of a company Dr. Nilsson formed in 2003 to commer- cialize ham radio antennas. The company also got a boost in November 2009, when it reached a settlement with WiFi Plus Inc. of Brunswick, which Dr. Nilsson helped start, and a group of other companies and individuals that sell products based on some of MP Antenna’s intellectual property. The settlement allows the group to continue selling only the multi-polarized antennas already in their product lineup. Still, challenges remain. For instance, the group in June filed an appeal with the Medina County Court of Common Pleas, arguing over a con- tract that dictates how the license agreement is to be implemented. Plus, many people still see antennas as commodities, Mr. Bliss said. “Everybody thinks antennas are all the same,” he said. ■ IN BRIEF PRSA honors Crain’s custom publishing Fahlgren Mortine Public Relations won a silver award for its ACG Cleveland Advertorial, produced by Crain’s Cleveland Business Custom Publishing. The award was presented to the public relations firm on Friday, Dec. 3, at the eighth annual PRSA Cleveland Rocks Awards Luncheon at Windows on the River. The section appeared in Crain’s Jan. 18 edition.

Volume 31, Number 49 Crain’s Cleveland Busi- ness (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 © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

REPRINT INFORMATION: 800-290-5460 Ext. 136 20101213-NEWS--5-NAT-CCI-CL_-- 12/10/2010 2:10 PM Page 1 20101213-NEWS--6-NAT-CCI-CL_-- 12/10/2010 2:46 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 As parent splits, little change at Moen Informal ban on earmarks By DAN SHINGLER go public or will be sold outright. Not that the move by Fortune [email protected] Moen will make up about $850 Brands to break up its business will could hurt college budgets million of the Home and Security be a negative for the region. When When Fortune Brands Inc. splits company’s annual sales of about the dust settles, Moen still will be By TIMOTHY MAGAW center, high-technology forensics lab up sometime in the second half of $3 billion, effectively contributing headquartered in North Olmsted [email protected] and resource center and the research 2011, faucet maker Moen will be the nearly 30% of the business to an and will be a big fish in a smaller and development of clean vehicle single biggest brand in a newly operation with 15 brands. corporate pond as part of a newly The state’s budget woes are a technology. independent public company that But there was little to no consid- independent company. constant source of concern for colleges “Every one of those projects will be formed from what is now the eration given to Moen serving as But the presence of another and universities in Northeast Ohio, encouraged young people (involved conglomerate’s Home and Security the headquarters of the new com- public company actually headquar- but a potential congressional ban with them) to consider staying (in division. pany when it’s spun off, Mr. Hine tered here would have been a better on earmarks — colloquially known Ohio),” Mr. LaGuardia said. “We But there’s no chance Moen’s said. That’s because the Home and thing, said economist Ned Hill, as “pork” — could cause a snag for want to keep them afterwards. The headquarters in North Olmsted will Security unit’s management and dean of Cleveland State University’s some of the schools’ burgeoning success we have also hopefully gen- become the new corporate head- headquarters structure already are Maxine Goodman Levin College of programs. erates business in the community.” quarters of that company, nor will up and running in Deerfield. Urban Affairs. The lawmaker-directed spending Over the last 10 years, Kent State much change for the folks at Moen, “It’s really business as usual,” Mr. “I’d rather have the headquarters items known as earmarks don’t University has received about $12 a Fortune Brands spokesman said. Hine said. of a company here than a division or account for a huge chunk of college million in congressional earmarks, “The business will remain head- There was seemingly no time branch, because the decisionmaking budgets, but a million dollars here according to Constance Hawke, its quartered here in Deerfield, Ill.,” for local economic development is here,” Dr. Hill said in an e-mail or a few hundred thousand dollars associate counsel and associate vice said Clarkson Hine, Fortune Brands’ officials to lobby the company to on the subject. there can go a long way in starting a president for federal relations. vice president of corporate com- consider a Cleveland-area headquar- As it is, Moen supports the local program, school officials say. That’s compared with about $20 munication. ters — nor was there much need, economy, including through the use A formal ban on earmarks failed million to $25 million the university Fortune Brands announced last said Tom Waltermire, CEO of Team of local contractors. Those compa- recently in the Senate. However, it’s receives each year in federally Wednesday, Dec. 8, that it plans to NEO, which markets the region to nies, too, are counting on their rela- still uncertain whether any legislation awarded competitive grants. split itself up. Instead of one site selectors and corporations tionship with Moen not changing containing earmarks can make it Ms. Hawke said the earmarks company selling $6.7 billion of considering a move or expansion. — and they’re glad for that. through Congress, given that generally went toward new initia- faucets, padlocks, cabinets, booze In the case of Moen, which “We have had an outstanding Republicans in the House agreed to tives lacking certain types of equip- and golf balls each year, it will once was led by Fortune Brands relationship with Moen for 20 years. a moratorium on them and Repub- ment and where there was no grant become three separate companies. CEO Bruce Carbonari, there’s no This change in the corporate struc- licans in the Senate could filibuster money available. Some of the projects Fortune Brands will remain as need to familiarize its parent with ture will not have any impact on any legislation containing the financed by earmarks include a liquor company, its Home and Northeast Ohio or its business com- our relationship, and we will oper- spending items that some suggest the university’s bio-safety training Security division that includes munity. ate as business as usual,” said Rob have become a symbol of waste in laboratory and 3D classroom, which Moen will be spun off into a sepa- “They don’t really need our help Falls, CEO of Falls Communica- government. allows researchers to study at the rate public company, and Titleist — it’s not like we have to tell them what tions in Cleveland, which handles U.S. Rep. Tim Ryan, D-Niles, who cellular level in three dimensions. golf ball maker Acushnet either will it’s like here,” Mr. Waltermire said. Moen’s public relations work. ■ has slated earmarks for several “We’ve never looked to earmarks universities and colleges in his as our sole-source funding for any district, recently told Crain’s that “for project,” Dr. Hawke said. all intents and purposes, earmarks are a thing of the past, at least for Looking elsewhere the next year or two.” Rep. Ryan said budgets for the Without this money, higher edu- National Science Foundation and cation institutions will need to look the National Institutes of Health elsewhere — competitive grants or have grown over the last few years, private partnerships — for the cash. and universities have competed for a larger chunk of that money. He The benefactors anticipates their budgets will shrink The University of Akron received over the next couple years, though, about $4 million in earmarks over as Congress looks to reduce spending. the last fiscal year, according to And with fewer, if any, earmarks, John LaGuardia, the university’s the scarcity of federal dollars could vice president for public affairs and hinder future research projects that development. Mr. LaGuardia said otherwise could create jobs. the university is awaiting word on The University of Akron’s Mr. several appropriations, but he noted LaGuardia said aside from federal what will happen when the next grant money, universities may need Congress is seated in January is any- to look for more private invest- body’s guess. ments from companies to help fund The university recently received a research projects. Regardless, Mr. $1.6 million earmark, placed by U.S. LaGuardia noted that Northeast Sen. Sherrod Brown, to help launch Ohio’s higher education institutions the school’s corrosion engineering are using the earmarked funds for program. It also received earmark “exceptional tasks that are relevant money for its polymer innovation to today’s society.” ■

Higher standards make better lawyers.®

Vorys, Sater, Seymour and Pease LLP Cleveland 216.479.6100 Akron 330.208.1000 www.vorys.com 20101213-NEWS--7-NAT-CCI-CL_-- 12/9/2010 8:55 AM Page 1

YOU FIRST. THE TECHNOLOGY FOLLOWS.

At Time Warner Cable Business Class, we take a somewhat atypical approach. First we learn all about your business. Once we truly understand how you work, we develop a best-in-class technology solution to help you be more efﬁcient. Our goal is to keep your business up and running, and you focused on running it. Call us today at 1.877.615.4332. Technology is best when it meets your needs.

1.877.615.4332 | TWCBC.COM

Internet | Phone | Cable TV | Ethernet

Products and services not available in all areas. Some restrictions apply. Time Warner Cable Business Class is a trademark of Time Warner Inc. Used under license. © 2010 Time Warner Cable, Inc. All rights reserved. 20101213-NEWS--8-NAT-CCI-CL_-- 12/10/2010 11:54 AM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 Giving: Nonprofits say fundraising efforts paying off continued from PAGE 1 According to a national survey by fundraising efforts for its fiscal year donors are starting to increase giving “We seem to be able to human services management at the Nonprofit Research Collabora- started strong in July, and she or come back from a break.” hit the mark (each Kent State University. tive, 36% of charities responding expects that trend to continue Still, Ms. Leek-Nelson said Prov- Those year-end donations — reported an increase in donations in through the holidays. The organiza- idence House has operated at a month), so I think we’re often a way for donors to shore up the first nine months of 2010 from tion, she said, has engaged prospec- 28% reduced budget for the last two coming out of it.” their last-minute income tax deduc- the like period in 2009, an improve- tive and existing donors with new years, and has made only 16 of its – Natalie Leek-Nelson, president tions — are expected to be on the ment from the 23% that saw e-mailed newsletters and a stronger 26 beds available for at-risk babies. and CEO, Providence House upswing for about 32% of the donations rise in the first nine presence on the Web and social media The revenue still isn’t there to state’s nonprofit organizations, months of 2008. Also, the number of sites such as Twitter and Facebook. restore what had been cut. according to a recent survey by charities reporting a decline in giving Ms. Leek-Nelson said she hopes ganization’s budget has become “vi- the Ohio Association of Nonprofit during that period this year fell to to raise 27% of Providence House’s Scaling back the mission able and sustainable.” Organizations. About 47% of the 37%, a decline from 2009’s 51%. revenue in December, and so far the Likewise, The City Mission The cuts mostly were done inter- respondents anticipate holiday “For the first time in a couple of group is on track to meet its goal. restructured its organization about nally by eliminating some full-time giving to remain steady, while 21% years, there’s some cautious opti- Also, 90% of the donated goods it a year and a half ago and cut its and part-time positions so as not to expect giving to decrease. mism about the nonprofit sector,” uses throughout the year are donated budget by 10% in anticipation of impact the City Mission’s outreach efforts. Still, the group cut back on its Emerging from a rut Ms. Bergh said. between Thanksgiving and Christmas. economic pressures that would Natalie Leek-Nelson, president “We seem to be able to hit the confront nonprofits, according to neighborhood ministry program, Nationwide, giving has started to and CEO of Providence House, said mark (each month), so I think we’re the group’s CEO, the Rev. Rich where anyone could ask the mission rebound, albeit slowly. the Cleveland crisis nursery’s coming out of it,” she said. “Our Trickel. Since then, he said, the or- for assistance. “I don’t think it’s ever minor when you can’t serve a group of people you used to serve, so we’re very sensitive to those things,” said Mark Charvat, the City Mission’s chief financial officer. About 45% to 48% of The City Mission’s annual budget stems from donations during October, November and December, Rev. Trickel said. So far this year, he noted, the organization is “slightly ahead” of last year in terms of income. “We’re satisfied in how things are going so far,” he said. Not everyone can say the same. Demand outpaces supply The Salvation Army of Northeast Ohio has seen a 15% decline in fundraising for this time of year compared with the like period in 2009, according to Stella Dilik, the organi- It’s 2:15 AM; do you know zation’s divisional development director. November donations had dipped slightly, which she attributed where your money is and whom it’s to the election season, but they started to rebound in December. It’s challenging, Ms. Dilik noted, hanging around with? because while donations have declined, the need for the Salvation Army’s services is increasing. “It comes down to the wire,” she said. “A lot of people will come out of the woodwork but need prompting right now. I feel confident that if we get the word out we’ll be able to meet the need of those coming to us.” In order to spur giving, Ms. Dilik said The Salvation Army has increased its direct-mail campaign. It’s also boosting its online presence and offering a service that allows people FirstMerit for total Treasury Management to donate through text messages. Great Treasury Management should be a 24/7/365 commitment. At FirstMerit, The Cleveland Foodbank nets about 50% of its yearly fundraising we have specialized and seasoned Treasury Management Ofﬁcers who will help you get the most out of goal in December alone, according your money by sweeping it, moving it, adjusting it and simply being proactive with it. We even have to Karen Pozna, the organization’s communication manager. The group a dedicated Treasury Management Call Center. Get FirstMerit and get more. hopes to raise $2.2 million this month and is on track to do so. Ms. Pozna noted that overall giving has increased ™ by about 40% over the last two years, More Bank For Your Business but the demand for the food bank’s services has risen by 50%. “It’s a kind of a double-edged sword because the need is continuing to increase. So, we’re doing our best to keep up with that need,” Ms. Pozna said. “I think the food bank has been doing very well and has been successful at fundraising, but we still need to do more because the need Call Maureen Murman, your local Treasury Management Representative, at 216-694-5637. has been increasing so much.” Though charitable giving slowly is firstmerit.com starting to grow, nonprofit professionals say it will take several years to recover in full from the recession. Regardless, Rev. Trickel of The City Mission is optimistic about giving this holiday season. “Cleveland is an incredibly generous town. Even for all of its difficulties and financial stresses it’s under, the people of Cleveland are very, very generous,” Rev. Trickel said. ■ 20101213-NEWS--9-NAT-CCI-CL_-- 12/10/2010 2:12 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 After ’09 dip, East Side IT outfit ramps up

By CHUCK SODER with companies that make tools for That partnership helped Paragon [email protected] building web sites and promoting Consulting establish itself as a “pre- its ability to develop software for eminent player” when it comes to A harrowing 2009 helped both smart phones and other hand- creating complex, interactive web Paragon Consulting Inc. laid the held devices. It also won more busi- sites, Mr. Atwood said. The company groundwork for what could be its ness from health care providers, also is in a partnership with another best year ever. Mr. Atwood said. web content management software The custom software develop- Because of those efforts, Paragon maker, Bridgeline Software Inc., ment firm plans to double the size Consulting this year expects to and it has built web sites using Mi- of its staff during the first three recover almost all the sales it lost crosoft SharePoint and other tools. months of 2011, said CEO Mark in 2009. And not only are old cus- Sitecore also helped Paragon Atwood. The company, which tomers spending again, but some Consulting find clients outside employs 18 today, also is looking for are spending more than they nor- Northeast Ohio. It recommended an East Side office that would be mally would because they delayed the Mayfield Heights firm to an twice as big as its 3,500-square-foot many projects, Mr. Atwood said. Atlanta-based startup developing a headquarters in Mayfield Heights. “For us it’s going to come back web site to help businesses prepare The pipeline of work at Paragon larger than it was,” he said. for and respond to crises. That job Consulting is “as full as it’s ever been,” Paragon Consulting already had gave Paragon Consulting the confi- Mr. Atwood said. The company the ability to develop mobile soft- dence to do more work remotely, sought new customers when times ware, but it started promoting it in Mr. Atwood said. got tough, and now old customers 2009 as a way to rise “above the Paragon Consulting did more are spending again. noise of all the IT consulting than build a web site for Preparis “Suddenly, we have both,” he said. companies out there doing custom Inc. — it helped the startup figure out Liquor: Paragon Consulting needs 20 applications,” Mr. Atwood said. how to build it right, said Dan Kehoe, Port Authority more people just to handle the Paragon Consulting also took a chief technical officer for the Atlanta projects it has on hand, Mr. Atwood step toward broadening its customer company. Paragon Consulting’s said, adding that he expects sales base when it formed a partnership willingness to learn about the busi- aims to boost capability to double in 2011. He declined to with Sitecore, a company that ness and build a web site to match disclose specific revenue figures. makes software that developers use its needs was a big reason the com- continued from PAGE 1 the pendulum is swinging back. The growth marks a major reversal to build web sites for businesses. pany impressed Preparis during the “It was a good exchange,” said David Gutheil, the Port Authority’s from 2009, when sales fell 40%. The Sitecore, with its U.S. headquarters interview process, Mr. Kehoe said. Port Authority president William new vice president for maritime company responded by seeking in the San Francisco area, eventually “The way Paragon approached it Friedman. “There seemed to be and logistics, said the agency is more customers outside of North- started referring clients to Paragon was, ‘Let’s understand before we start some interest in the concept.” looking for niche markets to grow east Ohio, developing partnerships Consulting. talking about ourselves,’” he said. ■ To make the idea work, European the Port of Cleveland. exporters need to be convinced that Sea lanes from Asia to either U.S. shipping to Cleveland is no more coast carry the heaviest traffic, and costly or time-consuming than keeping the cargo on a boat to shipping through a port such as Cleveland would be slower than Baltimore or Norfolk, Va., and that a trucking Asian cargo to Cleveland shipper likely would be available to from an East Coast port. But, Mr. carry the cargo to an East Coast port Gutheil said, it’s actually faster to in the winter months, when the move cargo from European and seaway is closed. even Mediterranean ports down the The longshoremen’s union for St. Lawrence than to drop it in New many years has been pressing York and haul it west by truck or rail. the Port Authority to expand its That’s why targeting European maritime operations to make more liquor imports makes sense. Mr. work for local stevedores. Now, with Gutheil said importers now bring a new maritime leader recently their U.S. cargoes to a single location hired, the Port Authority is focusing on the East Coast in trailer-size on expanding business along the containers. The cargo is moved to a Cleveland waterfront. warehouse and broken down into John Baker, president of the truckloads for shipping across the Cleveland-based Great Lakes District country. Council of the International Long- Spirit-ed discussion shoremen’s Association, said he was optimistic the Port Authority To ship directly, European under Mr. Friedman — who has distillers instead would move their been on the job less than a year — Ohio-bound containers on ships will work to rebuild the flow of destined for Montreal. cargo through the Port of Cleveland. Because the large container He said bringing in the liquor trade vessels are too big to move through is a good place to start. the seaway locks, containers des- Recounting part of the discussion tined for Cleveland would be put on at the Columbus meeting, Mr. Baker the Dutch Runner at Montreal and said, “Some of the local (importers) shipped up the seaway. Mr. Baker said, ‘Where have you been all our said a ship such as the Dutch Runner lives?’” can carry about 700 containers, and Mr. Baker said he even envisions his research suggests Ohio imports Cleveland as the dropoff point for the equivalent of 2,200 containers of liquor shipments to many Midwest liquor a year. states around the Great Lakes. Robinson Cooper, vice president and general manager of Cleveland- Right time, right place based Southern Wine & Spirits of Direct shipping to Cleveland makes Ohio, said several of his executives sense now because of efforts by a attended the meeting in Columbus. Burlington, Ontario, shipping com- While he isn’t ready to embrace the pany to operate regular cargo service idea, Mr. Cooper said he’s willing to between Cleveland and Montreal. listen further. The company, Great Lakes Feeder “It’s very interesting,” he said. Lines, announced in October that it “We’re waiting for more informa- would make Cleveland the U.S. base tion from them (about costs).” for its ship, the Dutch Runner, and Mr. Gutheil said he is working up the company is preparing to begin cost and transit time comparisons operations next spring. to present to the liquor companies, Meanwhile, Mr. Friedman is but he believes shipping through the paying more attention to rebuilding Port of Cleveland can be competitive. dock traffic. Mr. Baker said a second meeting For many years, the Port Authority, is scheduled for mid-January, because of its ability to issue tax- though the change of administra- exempt bonds, viewed itself as a tions in Columbus has him a little sort of public investment firm. With unsure about the meeting’s likeli- the hiring of a new maritime director, hood. ■ 20101213-NEWS--10-NAT-CCI-CL_-- 12/9/2010 4:34 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Caucus? No e respect Stuart Garson, chairman of the Cuyahoga County Democratic Party and a skillful attorney. However, we object to Mr. Garson equatingW a private meeting of select members of the new county council to a party caucus. The comparison insults citizens who voted last year for reform of county government because they were fed up with all its behind-the-scenes wheeling and dealing. Our friend Bill Wills, morning drive-time host at FROM THE PUBLISHER WTAM-AM 1100, last Wednesday conducted a revealing interview with C. Ellen Connally — the woman whom attendees of the Dec. 3 private meeting settled upon as their choice for council Winter wonderland creates wonder president — that exposed the gathering in the home tandard journalism advice handed building and the old post office. I and only glimpse of a police officer. of fellow council member-elect Julian Rogers for to young reporters by seasoned watched a uniformed police officer, bundled As I finally made it to the corner of what it was, and what it was not. editors over the years always has in winter clothes, safety vest and goggles, Carnegie and Ontario, I saw a cruiser, It wasn’t an exercise in good government. included a warning against using stand outside for several minutes watching lights flashing, blocking the on ramp. Sa direct quote for your first paragraph. the cars and their #$*% drivers block the The officer simply was sitting in the car, It was an exercise in politics and power. If you haven’t heard the interview, we highly But, man, sometimes they’re so darned Huron Road intersection ahead of me, in offering no advice to motorists trying to good, it’s very tempting. both directions. get on the Inner Belt, our multi-highway recommend visiting the WTAM web site and I suppose this belongs in that At the stroke of 5 p.m., that officer bypass/bridge. clicking on the “Wills & Snyder In The Morning” “stranger than fiction” category, but walked into the intersection and began The only way I got any advice was by page under “Shows.” You’ll find it there. here’s an entertaining little to help clear things. Now, I rolling down my window and asking. In the interview, Ms. Connally is evasive and tidbit, courtesy of The Plain BRIAN don’t care if he was on the city’s The officer cracked her window and gave stumbles over her own words multiple times as Mr. Dealer’s post-blizzard story last TUCKER clock or working for Forest City, me some directions, and I was on my Wills poses simple, straightforward questions about Thursday: the owner and redeveloper of way. But do you think she could have how and why the meeting took place. Here is a “Sgt. Sammy Morris, spokes- the post office. The fact was been doing that outside and actually sample of their exchange: man for the Cleveland Police he watched this maddening trying to help some very stressed-out Early in the interview, Ms. Connally draws an Department, said that there turmoil unfold and did nothing downtown workers? analogy between the Dec. 3 meeting and the Repub- were no reports of any major until what I can only presume All day long on Wednesday, down- accidents and that 22 traffic was his official shift starting town looked like the middle of a Christmas lican Party caucus in Washington in which John controllers were on city streets time. snowglobe. It was beautiful, and I Boehner was chosen as the next speaker of the House. directing drivers.” Now, if I’m wrong, I’ll apolo- assume the folks just a few short blocks “So you would call it a caucus?,” Mr. Wills asks. That is just plain hilarious. gize in this space, and I’ll do it away at City Hall were seeing the same “Yes,” Ms. Connally replies. Here were my two experiences with without the same non-apology apology weather conditions. Why on earth did “Why weren’t … were all Democrats invited?” Mr. “traffic controllers” as I made my one- offered by the young man who mouthed they not have “traffic controllers” at all Wills asks. hour, six-block drive from our Ware- off to a patrolman at bar closing time in the key downtown intersections? What At which point, Ms. Connally begins to hem and house District offices to the Inner Belt the Warehouse District, but that’s a would happen if we had to do an emer- haw, aware that Chuck Germana — a Democratic Freeway. whole ’nother story. gency evacuation? contender for the council president’s post who First, after about a half-hour drive the Now, back to my sojourn Wednesday Hope, I guess. But as the old cliché first three blocks, I sat in my car on that night as I tried to make a 6 p.m. volun- proves again and again, hope is not the enjoys Republican support — wasn’t invited to the short block between the state office teer board meeting (ha!), and my next best strategy. ■ meeting. “Well, it was — it wasn’t — originally supposed … the people who showed up. I didn’t call this meet- THE BIG ISSUE ing. I really didn’t even know who was going to show up,” Ms. Connally says. Do you ever make comments on Facebook or in another social media outlet about your company, boss or co-workers? “OK, let’s start this way,” Mr. Wills says. “Who called the meeting?” “You know, I don’t, I don’t really remember,” Ms. Connally says. “I got a call and I decided to go over to Julian’s house.” These guarded responses pop up throughout the interview. So do comments by Ms. Connally that express frustration with the public and media response to the meeting. “Everybody is so hung up about this,” she states at one point. And later: “I think that this thing has been blown all out of proportion.” SUSANN GEITHNER ERICA HOLMAN DAVID KOVATCH STEVE AUSTIN No, it hasn’t — not in a county still embroiled in an extensive corruption investigation that has shaken Lakewood Lyndhurst Westlake Medina people’s faith in the motives of elected officials. No. I just don’t think it’s appro- Yes, absolutely: inside jokes No. You never know who’s I am on the Twitters, and we Even against this backdrop, some of the county’s priate. I tend to keep my social and just commiserating with watching it, never know who’s do occasionally say things. We life and my business life sepa- each other. reading it. make comments about deci- new leaders, blinded by their own ambitions, can’t rate, and I think a lot of people sions the company makes, but see that voters want a new day in government. They should rather do that. it’s all obfuscated. Names of need to remove the scales from their eyes, and the innocent are changed. quickly. ➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. 20101213-NEWS--11-NAT-CCI-CL_-- 12/9/2010 3:29 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

LETTERS Tired of Being Screwed? U.S. must preserve more than security Then stop hiring fly-by-night “roofing contractors” whose only office address is wherever their pick-up truck happens ■ I am writing in response to the what true investigators do — estab- outrageously ill-conceived. last three paragraphs in Brian Tucker’s lish a criminal profile based on the Our new county council members to be parked at the time! Nov. 22 commentary regarding his evidence and intelligence they obtain. must shed their old partisan ways. The no-insurance, irresponsible operators are driving the few thoughts on airport full-body scan- Why does every man, woman and They are not working for their districts. remaining honest roofing contractors out of business. Unless ners. child (of every age and physical ability) They are not working for them- the consumer gets wiser, ultimately there will be no one It is a slippery slope we are treading have to go through a demeaning selves and their political futures. by allowing the invasive full body body scan or pat down? As you have They are working for us, the citizens responsible left! We are looking for a few wise consumers. scans and pat downs. Has modesty surely already read or heard, TSA of Cuyahoga County. They should ask If you fit the bill, call and respect for basic human dignity officials have admitted these “safety” themselves: Is each decision in the completely gone out the window? procedures cannot possibly catch best interests of the county as a whole? 216•881•1999 Aside from modesty, of which every possible hidden weapon. And to We want a less costly and more www.careyroofing.com this world is sorely lacking, these where does that next lead us? efficient government for the entire founded in 1946 “security” procedures are quickly This is not about safety. It is county. Hiring practices in particu- CAREY Roofing Corp. MEMBER: National Roofing Contractors Association turning this nation into a totalitarian about control and trying to cover lar should be oriented toward state. Has no one learned anything up the ineptitude of those who getting the best talent at the right from history? should have the intelligence, yet fail price. Open postings and a profes- The old saw that those who fail to to act on it. Just as punishing the sional human resources depart- learn from history are doomed to entire class for the disruptive ment are essential. repeat it bears remembering. It behavior of one student does not Efficiencies from technology are was not that long ago that Hitler’s truly deter the errant child, punishing sadly lacking in the auditor’s office Germany and Stalin’s Russia (and an entire nation does not do and probably other areas as well. the forced starvation of Ukraine) anything to stop a terrorist. Real improvements can be made reduced their citizens to pawns by As one local newspaper colum- that will reduce the cost of govern- stripping away their basic rights. If nist noted, we are turning into a ment and ultimately provide better one knows even the basics of what nation of sheep. And we, like sheep, service to the citizens. happened to the Jews, as well as are quickly going astray. We expect and demand a more those caught helping to save Jews, thoughtful and open process in they know that all those sent to the Kathleen Egan every area. Frankly, selflessness is gas chambers were stripped, literally, Cuyahoga Falls what we seek, and it’s a commodity of their dignity. that is very hard to find. Why, then, are we not demanding Transparency is key Our only chance is in front of us. that those in charge of intelligence Please, council members, give us do their job? In other words, do your ■Have we learned nothing from over new and better government, not job and target those who are truly two years of corruption proceedings the same old stuff. attempting to do wrong. Profile! in Cuyahoga County government? And I do not mean racial or A private meeting to select the new Jeff Sherman ethnic profiling. I am referring to president of county council was Highland Heights

Marathons: Participation up nationally

continued from PAGE 3 2,800 this year and typically make CreatingValue. up 18% to 24% of registrants. In-state runners from outside Northeast Ohio totaled around 3,000 in 2010 and usually account for about 20% of registrants. These out-of-towners are valued because they’re most likely to stay in a hotel, buy dinner at a Cleveland restaurant or take in a post-race show at Playhouse- Square. The Cleveland event’s economic impact has risen accordingly, said PHOTO COURTESY OF THE RITE AID CLEVELAND MARATHON Highland PR vice president Leigh Runners line up at the start of May’s Rite Aid Cleveland Marathon. Greenfelder, whose firm works with the Cleveland marathon. Ms. thon, too, has seen a rise in partici- a distance running wire service, Greenfelder said Forward Analytics, pation; an economic impact study participation in 200 established a Pittsburgh-based market research conducted by University of Akron road races in 2009 rose a collective outfit, in 2007 estimated the event’s economics professor Shawn Rohlin 11% over 2008, with 168 of those impact at $11.8 million, when 9,000 and a group of five students and races reporting increases. runners participated. In 2004, with obtained by Crain’s shows 11,051 The Rock ‘n’ Roll Las Vegas about 6,000 runners, the impact runners took part in the September Half Marathon recorded the biggest was estimated at $6.8 million. event. That was up 4.6% from 10,566 jump in the group studied, at Cleveland race officials figure the last year and up 21% from 9,100 in 132%, or 10,199 runners, while par- 2010 event’s impact at $15 million, 2008. (Race officials, in declining to ticipation in the Los Angeles Mara- though that may be conservative, release the report, cautioned the thon dropped by 18%, or 3,119 Ms. Greenfelder said. From 2004 to data still were preliminary.) runners. 2007, participation jumped 50% Of those 11,051, 5,085 were In many places, including Cleve- and impact 74%; from 2007 to 2010, non-local — outside Portage and land, the rise in participation has What do participation jumped 72%, but the Summit counties — and that group led to the placement of caps on the impact growth estimate only regis- contributed $1.99 million in total number of participants in individual You ters a 27% increase. spending impact. The event as a races in order to give runners room Value? “We didn’t want to overstate whole had an impact of $4 million. to maneuver. without a full study,” Ms. Green- “It lifts the community, not only At the 2010 Rite Aid race, the felder said. economically but also its spirit,” half-marathon and 10K races were And while convention and visitors said Gregg Mervis, vice president capped at 6,000 and the marathon at Maybe it’s advice from a tax professional year-round, bureau Positively Cleveland hasn’t of the Akron/Summit County Con- 3,000; officials are pondering how or having personal advisors who are experts in your industry. researched the marathon’s effect vention and Visitors Bureau and an to cap the races with the previously downtown, vice president of mar- Akron marathon finisher. It gives mentioned higher registration esti- Perhaps it’s access to tools to help your business succeed. keting Tamera Brown said hotels us an overall good feeling, and mate. Much will depend on final and other businesses benefit greatly. impacts our residents’ health.” course approval; there currently are We Value that too. “Even locals opt to stay down- The local jump in running partic- two proposals. town for an earlier start and patronize ipation mirrors a nationwide trend, “It’s hard to fit 9,000 people in local businesses,” she said. perhaps attributable to a growing Tremont all at the same time at the focus on healthy lifestyles and Good vibrations beginning of the race, due to road or wellness. According to an analysis size and parked cars,” Ms. Green- 216.241.3272 www.meadenmoore.com The Road Runner Akron Mara- conducted by Race Results Weekly, felder cited as an example. ■ 20101213-NEWS--12-NAT-CCI-CL_-- 12/9/2010 8:55 AM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010

Type: Employer’s withholding TAX LIENS Amount: $21,604 GOING PLACES The Internal Revenue Service filed tax Date filed: Oct. 29, 2010 Power Alarm Inc. JOB CHANGES liens against the following businesses Type: Employer’s withholding 25086 Lakeland Blvd., Euclid in the Cuyahoga County Recorder’s Amount: $29,810 ID: 34-1344538 EDUCATION Office, to protect the interests of the Date filed: Oct. 13, 2010 Beta Strategy Group Ltd. federal government. The lien is a notice Type: Employer’s withholding URSULINE COLLEGE: Matthew 33 River St., Chagrin Falls to creditors that the government has a Amount: $21,223 McCaffrey to director of undergraduate Downing Rosenfeld Daberko claim against a company’s property. ID: 20-4359850 admission; Melissa Waclawik to Date filed: Oct. 29, 2010 Mutt Hutt Ltd. director of graduate admission. Dates listed are the dates the documents Dr. Elia Pestana Knight to Division were filed in the Recorder’s Office. Type: Employer’s withholding 2603 Scranton Road, Cleveland Amount: $26,855 ID: 71-0983025 FINANCE of Pediatric Epilepsy. Date filed: Oct. 19, 2010 LIENS FILED Ran-Dan Transport Inc. CFBANK: Kemper C. Allison to vice Type: Employer’s withholding, INSURANCE Double Moose Management Co., 2506 Grovewood Ave., Parma president, commerical banking; Keith employer’s annual federal tax return BRITTON-GALLAGHER: Tim Krenn Moosehead Hook & Ladder No. 3 ID: 92-0184993 D. Anderson to credit officer. Amount: $19,725 to employee benefits producer. 7989 Columbia Road, Olmsted Falls Date filed: Oct. 29, 2010 FIRSTMERIT CORP.: Julie Clemo Type: Employer’s withholding ID: 26-2147968 Stec Construction LLC Tutkovics to senior vice president, LEGAL Date filed: Oct. 19, 2010 Amount: $23,116 6507 Luelda Ave., Parma chief marketing officer; Jason Gendics Type: Employer’s withholding ID: 57-1175189 to director of retail banking, Ohio. GALLAGHER SHARP: Shane A. Charles P. Braman & Co. Amount: $41,865 Date filed: Oct. 19, 2010 Lawson to associate. 23300 Chagrin Blvd., Suite 102, HUNTINGTON BANK: Diane M. Type: Employer’s withholding, First Choice Homecare Inc. Beachwood Downing to senior vice president, REMINGER CO. LPA: Bethanie E. unemployment, civil penalty assessment 601 Towpath Trail, Suite C, ID: 34-0877051 regional manager of corporate affairs. Ricketts, Rafael P. McLaughlin and Amount: $19,303 Nick R. Catanzarite to partners; Broadview Heights Date filed: Oct. 19, 2010 OHIO COMMERCIAL BANK: Gregg Anthony M. Catanzarite to co-chair, ID: 34-1876809 Type: Employer’s withholding, Arco Comfort Air LLC Paliokas to senior credit analyst. Construction Design and Liability Date filed: Oct. 19, 2010 corporate income 22053 Aurora Road, Bedford Heights Practice Group. Type: Employer’s withholding Amount: $22,083 ID: 14-1867200 FINANCIAL SERVICE Amount: $31,586 Diamond Billiards & Spas Inc. Date filed: Oct. 19, 2010 LINSALATA CAPITAL PARTNERS: Type: Employer’s withholding, MANUFACTURING Watsons Funeral Home Inc. 8003 Brookpark Road, Parma James V. Guddy to vice president. unemployment SWAGELOK CO.: Edward Bayer to 10913 Superior Ave., Cleveland ID: 38-3661275 Amount: $17,211 PRICEWATERHOUSECOOPERS: director, sustainability. ID: 34-0755005 Date filed: Oct. 13, 2010 Erik Rosenfeld to partner. Date filed: Oct. 15, 2010 Type: Employer’s withholding Ohio Sauce Corp., SKODA MINOTTI: Ted R. Ginsburg NONPROFIT Type: Employer’s withholding Amount: $21,653 Hot Sauce Williams to principal, compensation and benefits Amount: $29,837 12310 Superior Ave., Cleveland CLEVELAND INSTITUTE OF CSF Enterprises advisory services group. ID: 34-1286996 MUSIC: Lorraine Schuchart to Johnny & Co. Bar and Grille LLC 29 S. Main St., Chagrin Falls Date filed: Oct. 5, 2010 SS&G: Kelly Pulling to associate. director of marketing and communica- 18029 Euclid Ave., Cleveland ID: 59-3824639 Type: Employer’s withholding SS&G HEALTHCARE SERVICES tions. ID: 20-4383154 Date filed: Oct. 7, 2010 Amount: $16,786 LLC: Jonathan Steiner to financial TEAM NORTHEAST OHIO: Christine analyst. Nelson to vice president, business Kid Nation Inc. attraction; Jacob Duritsky to 1413-1419 Hayden Ave., East Cleveland HEALTH CARE director, business attraction. ID: 74-3237201 HEALTH DESIGN PLUS: Kathleen Andrew Hopper Joins Date filed: Oct. 29, 2010 SERVICE Type: Employer’s withholding, Daberko to account manager. unemployment UNIVERSITY HOSPITALS RAINBOW CASNET: Terry Fischer to First Place Bank Amount: $16,590 BABIES & CHILDREN’S HOSPITAL: president, chief operating officer. CLEVELAND METROPARKS ZOO: Commercial Banking Team Dr. Mike Selig to veterinarian, The Sarah Allison Steffee Center for Zoological Medicine. Andrew Hopper has joined BOARDS First Place Bank as Vice Mission Outstanding! KENT STATE UNIVERSITY President and Commercial FOUNDATION: Linda Neiheiser to Relationship Manager, secretary. Commercial Banking. MAYFIELD AREA CHAMBER OF COMMERCE: John D. Swartz to president; Donna Leseman to Hopper has 13 years of vice president; Bruce Bechhold to experience in providing treasurer; Mary Jo Vleck to secretary. business banking services to his Andrew Hopper clients, having held managerial AWARDS positions at other Northeast THE AMERICAN ACADEMY OF Ohio financial institutions. NURSING: Carol Sedlak (Kent State University) was named an academy fellow. “Andy is a great addition to our commercial OHIO STATE BAR FOUNDATION: banking team,” said Kenton Thompson, North David C. Weiner (Squire, Sanders & Coast Regional President. “With his strong Dempsey LLP) received the 2010 Would you describe your law firm as outstanding? Honorary Life Fellowship Award. commitment to his clients, well-rounded It could happen. financial services expertise, and involved Send information for Going Places to experience with the Cleveland area business The attorneys at McDonald Hopkins are [email protected]. community, he’s a perfect fit with our brand of on a mission to provide outstanding legal services to every client. business community banking.” GET DAILY NEWS ALERTS ® FROM CRAIN’S! Hopper is a graduate of The Ohio State Attorneys on a Mission Your mission is our mission. We never lose sight of it. Register for free e-mail alerts University and is a member of Rotary and receive: International. He can be reached at ■ The Morning Roundup: A 216-288-1174. collection of the day’s business news from Ohio’s daily papers A business advisory and advocacy law firm® ■ Breaking news alerts: When 600 Superior Avenue, East, Suite 2100, Cleveland, OH 44114 major news happens, you’ll know 216.348.5400 ■ Daily headlines: A collection Carl J. Grassi Shawn M. Riley of Crain’s-produced news and ® President Cleveland Managing Member blog items from the day ■ e!Cleveland: A weekly guide www.firstplacebank.com Chicago • Cleveland • Columbus • Detroit • West Palm Beach to arts and leisure in Northeast www.mcdonaldhopkins.com Ohio 20101213-NEWS--13-NAT-CCI-CL_-- 12/9/2010 3:29 PM Page 1

DECEMBER 13 - 19, 2010 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 17 TAX TIPS: NOW MAY BE THE TIME TO LOOK AT S CORP STATUS. SMALL BUSINESS GIVING BACK NOW PART OF THE PLAN Entrepreneurs make philanthropy a focus, find donations make companies more successful long-term

By AMY ANN STOESSEL [email protected]

ave Rzepka not only feels strongly about giving back to the community, he wants people to have a choice Dwhen it comes to where their money is donated. That’s why when he started Beecology about two years ago to sell handcrafted natural skin care and hair products, he and his wife, Amy, not only committed to donate 10% of their net profits to charity, they created a charity web site, www.sweetyear.org. Each of the products sold by the Bedford Heights company online and at boutiques and farmers’ markets carries a unique code on its packaging, which then can be input by a customer at the Sweet Year web site. Customers can choose from a list of organizations online — which includes such groups as the American Diabetes Association, Autism Speaks and Susan G. Komen for the Cure — to help JANET CENTURY determine where donations from Bedford Heights-based Beecology, run by Amy and Dave Rzepka, has committed to donate 10% of its net profits. Its charity web site allows customers to direct donations to certain organizations. See GIVING Page 16

2011 WAGE PLANS Number of raises grows, but still below pre-recession Northeast Ohio companies responding to a survey by Employers Resource Council are projecting an average Those lacking resources to increase salaries look for other ways to reward employee performance salary increase of 2.8% for 2011. How that compares to previous years: By TIMOTHY MAGAW “If they do the work that is was before the recession. about 93% planned to give pay [email protected] above expectation, they get a For instance, of area businesses increases. Year Wage adjustment raise,” said Mr. Glover, the presi- with fewer than 50 employees, The raises, of course, won’t be f an employee of Chuck dent of LMI Family Group, a about 73% plan to give raises this anything Google-like in nature — 2010 2.7% Glover’s performs well and Mentor-based management and year, according to a recent survey the search engine giant recently 2009 3.1 exceeds expectations, that construction company. “They by the Employers Resource gave each of its 20,000 employees person will get a raise. It’s that know that because they do what Council, a nonprofit human a $1,000 holiday bonus and a 2008 3.4 Isimple. they’re supposed to do. That’s resources organization based in whopping 10% raise. Pay hikes at 2007 3.5 Last year, a select number were how it’s always been.” Mayfield Village. small businesses in Northeast lucky enough to get a pay bump, The number of small businesses That’s up from 53% of small Ohio are expected to be around 2006 3.4 but this year most — if not all — of in the region giving their employees businesses that planned to give 2.8%, about on par with the 2005 3.4 his about 20 employees will get a raises appears to be on the rise, raises last year, but still far below national average. 2004 3.6 3% to 5% pay hike. though it’s still far below what it pre-recession levels in 2007 when See RAISES Page 15 20101213-NEWS--14-NAT-CCI-CL_-- 12/9/2010 2:13 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 SMALL BUSINESS Demand for retro hand carving set in stone GRAND OPENINGS Area fabricators continue to serve specialized market By KATHY AMES CARR [email protected]

hris Pascoe watched a Harry Potter movie recently and was transfixed by JUST DOGS! GOURMET something other than the Chris Pascoe, Caction. the owner of 30323 Detroit Road As he watched Harry and his Tri-R-Stone in Crocker Park Promenade friends running atop cloisters at the Garfield Heights, Westlake 44145 Gloucester Cathedral in England, in early Decem- www.justdogsgourmet.com he muttered to himself, “Man, that ber shipped this Just Dogs! Gourmet, a nationally looks familiar.” 35-foot-by-22- franchised company, is a bakery for The jolt of realization hit. foot stone front canines that offers an assortment of Mr. Pascoe worked on restoring for an out-of- fresh-baked, hand-cut, all-natural dog that 900-year-old cathedral early in state residential snacks. Locally owned by Lori Aldrich, his stone-carving career, when he client. Just Dogs! Gourmet makes its snacks was 15 and didn’t know what he JASON MILLER fresh daily, and they are available in a was going to do with his life. variety of shapes, sizes and flavors. “But when I picked up a mallet years, rather than created last in stone carving, which is the stone carving master, and he said In addition to edibles, Just Dogs! and chisel, I had one of those month,” said the formally trained equivalent of a journeyman’s the construction market about 20 Gourmet offers an array of acces- moments. I knew I was going to Mr. Pascoe. certificate. years ago shifted from using wood sories, such as supplements and “We learned the whole aspect of to more granite, quarry and other shampoos. make a career out of this,” he said. Stepping stones And 30 some years later, Mr. the construction industry, from types of natural stone. 440-808-9663 Pascoe — along with a few other Years of education and manpower stone carving to construction to “We get about 50% of our Northeast Ohio artists — still are preceded the opening about a year architecture and civil engineering,” commissions from stone,” he said. practicing the old-world craft of and a half ago of Mr. Pascoe’s he said. “A lot of fabricators and Mr. Koehn, for example, is CLOSED LOOP LLC carving natural stone by hand, business, Garfield Heights-based masons here are self-taught because working on carving by hand 16201 Parkland Drive eschewing big machines for sweat Tri-R-Stone. the skills have been lost. It’s sad.” special script, one-foot stone Cleveland 44120 and chisel to produce customized Mr. Pascoe went to Bath Technical Fellow stone carver Nick Fairplay lettering for the University Hospi- www.closedloop-cle.com work. College in England and earned in 1991 lured Mr. Pascoe to the tals Case Medical Center’s cancer Closed Loop LLC is a five-person “The key is for the structure to through the City & Guilds of London United States, where they worked center at University Circle. team of professionals from varying look like it has been there for 100 Institute a five-year apprenticeship on a five-year restoration of the Bob O’Brien, of Warrensville backgrounds that work with companies Cathedral of St. John the Divine in Heights-based O’Brien Cut Stone, to identify and implement sustainable New York with a team of 21 stone said his fourth-generation family business strategies. The group’s aim carvers and cutters from throughout business does minimal stone is to take the concept of sustainability the world. carving jobs — mostly finishing and make it part of the business or Family ties and access to natural work by hand — because there’s organization. NORTHEAST OHIO REGIONAL SEWER DISTRICT stone brought him in 1996 to North- not a large demand for “true stone east Ohio, and since then he has carving work.” 440-821-5022 SMALL BUSINESS developed the stone-carving divi- “It can be cost prohibitive,” he [email protected] sions for various businesses such said. ENTERPRISE PROGRAM as Vermilion-based Cleveland Meanwhile, Mr. Pascoe worked BLACKROCK PARTNERS Quarries. this past summer with Baldwin- He went out on his own, with Wallace College to renovate the 635 W. Lakeside Ave. No. 202 the help of two private investors, to front of Strosacker Hall, the college’s Cleveland 44113 set up in April 2009 his own shop union, with sandstone. www.blackrocklp.com while working on a 35-foot-by-22- He also is teaming up with Mr. A boutique real estate firm, BlackRock foot stone front for an out-of-state Fairplay, who now is an architec- Partners specializes in the brokerage, residential client, a project that tural sculptor at Oberlin-based marketing and development of took him nine months to complete. Fairplay Stonecarvers LLC, to downtown residential and commercial The project required 900 cubic produce a line of hand-carved real estate. Co-founders Jon Mavrakis feet of cut stone and costs were in stone fireplaces that meld modern and Nick Petrakis are joined by the six-figure range, though Mr. American design with traditional partner Nicholas A. Zarnas, former Pascoe declined to elaborate since architectural detailing. chairman of Grubb and Ellis Co. his client prefers to remain private The cost of a project like this Investment Services Group, who has about his expenditures. varies greatly, according to materials focused the last decade on the reuse In fact, clients such as Mr. Pascoe’s involved and client preferences, of existing downtown Cleveland build- tend to be discriminating about but Mr. Pascoe said a hand-carved ings to create high-end, customized, structural and landscape work, natural stone fireplace can cost multi-story residential properties. opting for the unique skills that anywhere $2,000 to $40,000. Typi- Messrs. Mavrakis and Petrakis also Here’s the sign stone carvers bring to the table. cally, a slab costs $36 per cubic have been integrally involved in high- Doug Brown, co-owner and foot to $50 per cubic foot. profile downtown Cleveland residential you’re looking for. design salesman for Chagrin Falls- Mr. Pascoe in March collaborated real estate projects. They helped based Naturescape Inc., said his with the Ohio Landscape Associa- facilitate marketing, sales, construction business is predicated on perfection tion to teach about 40 area land- and financing for the 14-story Pinnacle because the landscape and design scape artists and other contractors Project. They also helped lead the firm’s clients prefer high-end, the proper techniques in stone conversion of the work-live building unusual landscape products. carving during two sold-out clinics. known as the Cloak Factory into 26 We’re expanding our small-business “Chris does a lot of blue stone opportunities to provide economic beneﬁts for “Chris is excited about sharing condominiums and offices. outdoor kitchens for me,” he said. his old-world craft,” said Sandy the region and help local companies grow! “If I need a unique piece, Chris will Munley, executive director of the Phone 216-245-3343 do it.” Ohio Landscape Association. “He’s Fax 216-861-2969 If your company is a small construction or Mr. Brown said masons like Mr. brilliant in what he’s doing and Pascoe are valuable because stone wants to be sure the craft doesn’t To submit a new business, send the engineering company or a provider of goods or can’t be completely carved with professional services, we invite you to apply for die. And he wants people to learn following information by e-mail to machines; only the hand and chisel how to do it the right way.” Amy Ann Stoessel at astoessel@ our SBE program. can precisely carve out grooves Mr. Pascoe is planning to crain.com: business name; address; and designs, if done the proper continue conducting the seminars city and ZIP; web site; brief way. this spring; ultimately, he hopes to description of business; business Carving out a niche formally parlay those skills to phone number; business fax APPLY & LEARN MORE at neorsd.org/sbe would-be apprentices. number; business e-mail address; Norbert Koehn of South Euclid- “My hope is to teach young lads and date that business opened. Call based Koehn Sculptors also is a here one day,” Mr. Pascoe said. ■ 216-771-5155 with questions. 20101213-NEWS--15-NAT-CCI-CL_-- 12/10/2010 2:11 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 SMALL BUSINESS WAGE ADJUSTMENT BY SECTOR Raises: Morale can suffer in long slump How Employers Resource Council survey respondents said they’d adjust employee salaries, broken down by industry: continued from PAGE 13 ice cream every Friday. of a pay bump aren’t likely to leave Sector 2011 adjustment 2010 adjustment Mr. Glover said the pay increases “People want to know their work the company because the economy are about making sure he can and their time is appreciated,” Ms. is still recovering. Non-union production, service 2.7% 2.6% provide his employees the resources Chermonte said. “How a company treats its to live comfortably. In his estimation, Still, Dr. Long said many busi- employees during tough times has Union production, service 2.7 2.7 the cost of living is increasing, nesses are still choosing to forego a lasting impact,” Dr. Long said. Clerical/technical 2.8 2.6 contrary to what some analysts pay increases simply because the “Employees know if a company is might suggest. job market is so tight. It’s a short- doing well. ... If they don’t give Supervisory/professional 2.8 2.7 “You don’t see that going to the sighted view, Dr. Long said, but raises, it could have a detrimental grocery store,” Mr. Glover said. employees disheartened by a lack effect on employee morale.” ■ Executives 2.9 3.0 “You don’t see that going to meat store or local places you’re buying things. The costs are still going up. Employees still have to pay more to live.” Paul Roetzer, president of PR 20/20, said he expects that the nine employees in his Cleveland-based public relations and marketing agency will receive somewhere between a 5% and 10% pay increase. Because PR 20/20 has experienced significant growth over the last five years, Mr. Roetzer said the firm has been able to continue giving raises. “Our largest investment is in our talent, so our base compensation packages are designed to be at or above average in our industry,” Mr. Roetzer said. Meanwhile, Lori Long, associate professor of human resources at Baldwin-Wallace College, noted that if employers are looking to give pay increases based on performance, they need to ensure there is a significant enough pay bump between the highest and lowest performers.

“How a company treats its employees during tough times has a lasting impact.” – Lori Long associate professor of human resources, Baldwin-Wallace College

For instance, if high performers earned a 3% pay increase while low performers earned a 2% bump, there isn’t much of an incentive to perform well, she noted. Dr. Long said that small businesses tend not to have the resources to create a strong performance management system, but she said it is important to have a point person — whether that’s a human resources professional or perhaps a lead office manager — to oversee pay increases and performance reviews. “Smaller businesses need to be more cautious and have a central person responsible for that process,” she said. If the cash isn’t there Susan Chermonte, a human resources specialist at the Employers Resource Council, said she’s fielded calls from area businesses that don’t have the resources to offer pay boosts but are looking for ways to reward their employees. She said a lot of employees don’t feel appreciated, so even sending them a handwritten note thanking them for their hard work and apol- ogizing for not being able to offer a pay increase or bonus could pay off. Other suggestions, Ms. Chermonte noted, include offering more vacation time, celebrating anniver- saries and birthdays or providing some sort of treat such as bagels or 20101213-NEWS--16-NAT-CCI-CL_-- 12/9/2010 3:07 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 SMALL BUSINESS Giving: Partnerships help spread word about nonprofits’ causes

continued from PAGE 13 One such entrepreneur is Deb “I’m willing to help you grow … making money off them,” she said. about The Gathering Place, said Ms. Beecology should be made. Mills-Scofield, who has made as long as you’re willing to help “It’s really a win-win model.” Darmstadter. Mr. Rzepka is far from alone in philanthropy a central part of the someone along the way,” said Ms. During The Gathering Place’s One of the small businesses his philanthropic efforts among way she conducts business. Mills-Scofield, who also donates 10% last fiscal year, which ended June lending support to The Gathering the small business community. So much so, it’s the policy of her of her personal income to charity. 30, 6.7% of the organization’s Place is VanityLab Salon Spa Shop Oberlin-based consulting practice, donated revenue came from According to a study released last A win-win in Westlake, which recently added an month by Ernst & Young and the Mills-Scofield LLC, that any client external fundraisers, which include onsite local artisan jewelry collection Fidelity Charitable Gift Fund, 89% of the firm must match and donate Beth Darmstadter, director of small businesses. That number under the name Sparkle Jewelry. of entrepreneurs donate money, 10% of Ms. Mills-Scofield’s development for The Gathering was more than double what had Sparkle features the work of more both personally and through their consultancy fee. Clients can give Place, a cancer wellness and been anticipated, and the hope is than 50 local artists, and a portion companies. to the cause of their choice, and support center with locations in that it will exceed those levels of the proceeds, along with a match In fact, 62% feel that giving back some donate more than is asked. Westlake and Beachwood, said during the current fiscal year. from Sparkle, support an area non- makes their companies more Mills-Scofield client giving this there are many benefits derived Of course, the benefits are not profit. Contributions currently are successful in the long run, and year has amounted to $12,000, from partnerships between small just monetary. benefiting The Gathering Place. 26% even incorporate philanthropy plus in-kind donations. Over the businesses and nonprofits. “The more we have relationships VanityLab owner Angie Hofelich into their companies’ business past nine years, cash and in-kind “People want to give back to with community businesses, the said sometimes it can be a challenge plans. donations have totaled $250,000. companies that are not just more they help spread the word” to juggle the many requests for donations. “They all think you just have extra money to give,” she said. While she might respond to such requests with in-kind donations such as makeover passes, Ms. Hofelich tends to focus her efforts A SECOND OPINION SAVED US on specific local organizations like The Gathering Place or the North- east Ohio Society for the Prevention of Cruelty to Animals, to which * VanityLab already has donated $5,000 to $6,000. “Find something that you believe in and have an organized approach,” she said. “Give what you can give.” Every little bit counts For entrepreneurs like Valerie Mayen — best known by some for her appearance on Season 8 of “Project Runway” — it’s no doubt a challenge to nurture a young business while staying committed to philanthropy. TIMES ARE TOUGH, BUT WE’RE STILL GOING, and a Citizens Bank Second Opinion helped us get there. After But “doing well by doing good” is a mantra that Ms. Mayen takes to examining every aspect of our business, a Citizens Banker found ways we could save more money, be more heart. The designer — who currently efﬁcient – for our business and personal accounts. lives and works in a 2,000-square- foot loft space in Cleveland — has made the commitment to donate 5% Make time to meet with a Citizens Banker. To schedule your Citizens Bank Second Opinion, CALL 800-946-2264 of the profits from Yellowcake, her or go online to CITIZENSBANKING.COM/OPINION. fashion line. She likes to base her donations on need, going to causes such as the City Mission and those that fight hunger and homelessness. “The need is now … the growth of my business isn’t as pressing,” she said. “I’m still able to pay my bills; I’m still able to eat; I’m still able to enjoy my life.” Ms. Mayen gives anywhere from $120 to $300 a month when sales are consistent. Certainly, she said she would like to eventually be able give more as her business grows. Gina and Ed Trebets of Chester- land — who recently launched their own wine label, Muddy Paw — also included a plan to give back when developing the concept for their product, inspired by their 8-year-old rescue dog and 1-year-old yellow Lab. A portion of the wines’ proceeds — currently at least $1 from each bottle — benefit the Geauga County Humane Society Rescue Village, an organization that Ms. Trebets said does not euthanize and that accepts all types of animals. There’s a business benefit, too, the Trebets admit. People who love animals are drawn to the label and the cause. “It’s rewarding to be able to see your profits and hard work go to good,” Ms. Trebets said. Ms. Darmstadter of The Gathering Place couldn’t agree more on the positive effect that small businesses * Results may vary depending on your business situation. can have. “No matter how small you are, it all comes together to do big things,” she said. ■ 20101213-NEWS--17-NAT-CCI-CL_-- 12/10/2010 11:04 AM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 SMALL BUSINESS If dividends are on tap, consider switch to S corp

the appreciation, $7 million, is Many observers might assume Distribution taxes higher in other structure CARLGRASSI taxed only once, even if the proceeds that the IRS challenge might be from the sale are distributed to the successful. After all, the best ith the beginning of a distributions are made from the C shareholders. valuation of any business is the new year around the corporation since distributions will Most taxpayers and advisers amount a third party would pay. corner, business owners generate a second level of tax to be assume that a significant period of The tax court found that while who operate their paid by the shareholders. time must pass between the S the sale price in November was businessesW as C corporations will This is bad enough under current election and a subsequent sale to probative of the value, it did not begin thinking about whether 2011 law that sets dividend rates at 15%, have appreciation taxed only once automatically set the value as of is the year to make an election to but the scheduled tax increases as in the above example. Jan. 1, and determined that the have the business taxed as an S would make dividends taxable at TAX TIPS A recent tax court case held that correct value was $3.7 million. corporation. ordinary income rates — scheduled a significant amount of apprecia- The company therefore saved This decision has special impor- to increase to a maximum 39.6% a period of time, generally 10 years, tion can occur after an S election is taxes on $1.5 million of gain even tance for 2011, with the specter of rate. following the S election if such made, even if the election is made though the S election was made in corporate dividends being taxed at Regardless of whether these assets (including goodwill) were in the same year as the sale. the year of the sale. One lesson of almost 40% for higher income worst-case scenario tax rates appreciated at the time of the S In this case, the corporation’s this case is to document value at taxpayers. become reality, businesses that election. The amount of gain accountant appraised the value of the time of the S election with a S corporation distributions distribute cash to their shareholders subject to the BIG tax is limited to the corporation at $2.6 million at reliable independent appraisal. generally are not taxed — a signifi- should seriously consider the the gain built into the assets at the about the same time an S election Of course, there are very specific cant tax savings for businesses that alternatives to being structured as C time of the S election. was made on Jan. 1, 2000. requirements that must be satis- make cash distributions. corporations. This is especially true For example, assume that in 2004 In November of that same year, fied for a business to qualify to C corporations can be tax efficient in the case of a corporation in the a C corporation purchased property the company sold for $5.2 million. make an S election, but many in years that dividends are not paid. year it sells all of its assets. for $1 million that appreciated to a The taxpayer asserted that the closely held businesses will satisfy In fact, tax rates for C corporations Business owners often are reluc- value of $3 million in 2005. An S value of the company at the time these requirements. This is a good may be less than the rates for S tant to make an S election if a sale election is made in 2005, and over of the S election (and therefore the time to review those requirements corporations because S corporation of the business is possible in the the next five years, the property amount of built-in gain) was $2.6 and consider or reconsider the S income is taxed to the individual near future because it is “too late” appreciates to $10 million. million. election. ■ shareholders, and individual tax to avoid the built-in gains (“BIG”) When the property is sold in The IRS challenged this valuation, rates are more likely to rise next tax. 2010, the BIG tax only is applicable asserting that the value at the time Mr. Grassi is a member and year. S corporations pay a corporate to the $2 million in appreciation of the S election was $5.2 million, president of McDonald Hopkins This possible efficiency is lost if level of tax if assets are sold during from 2004 to 2005. The balance of which was the recent purchase price. LLC.

SHORT TAKES

■ KIDS STUFF: Hazel Tree Interiors Together franchise last month in Gates in Akron, owned by Karen Starr and Mills at 1540 Chagrin River Road. Fit- her husband Jon Haidet, has added a ness Together is a fitness studio dedi- new line, called Hazel Tree Kids, cated to one-on-one personal training. which will feature children’s furniture The group previously opened Fitness and toys made or redesigned by local Together franchises in Chagrin Falls, artisans. Several of the artists already Solon, Hudson and Rocky River. seen in Hazel Tree now have put their spin on pieces for use in children’s ■ ADDING TO THEIR RANKS: Redi- rooms, such as nightstands, rocking Go Food Marts in Lake County has chairs and bookshelves. added a ninth store to its brand. The new store was formerly Poppa C ■ A GEM: Howard’s Jewelry Center Sunoco, and it is owned by Andrew last month opened its fourth location and Carolyn Cianfaglione. The in the Great Lakes Mall in Mentor. In RediGo brand was formed in 2007 so business for almost three decades, its store owners could share an Howard’s, founded by Howard advertising program and leverage Hurwitz, also has locations in Maple other benefits from working as a group. Heights, Mayfield Heights and Parma Heights. In addition to offering new ■ SET IN STONE: S.B. Stone and jewelry and like-new jewelry for sale, Co., a consulting firm that is more Howard’s also accepts jewelry for than 30 years old, has changed its trade-in or as collateral. name to Stone Crossing Solutions and has moved offices within Indepen- ■ NEW LOCATION: Season’s Prac- dence to accommodate staff growth. tice, a health and wellness practice The company has 40 employees and for women, has opened a second works with 45 independent contractors. location at 30638 Center Ridge Road President John Vojtush said the Inspiring minds, transforming lives, in Westlake. At the new Westlake company will be adding 25 more location, Season’s Practice will offer employees in the next three to six cosmetic services including Botox non- months and more independent con- AND a great value surgical treatment; dermal fillers; per- tractors. The company is a strategic manent makeup; laser skin rejuvena- business solutions provider focusing Employers hire our students: Within 6 months of graduation, 97% tion; and other services. Season’s on the areas of custom application s Practice’s other location is in Middle- development; agile and lean software of our students are either working full-time, in graduate school, or burg Heights, where it offers psycho- development; staff augmentation; fulfilling a commitment to a year of service. logical/emotional services. network infrastructure; hardware/soft- Leaders come from John Carroll: 500 Ohio companies are owned ware installation and implementation; s ■ DO YOU COPY?: A new Canon and business strategy consulting. or operated by our alumni. Business Solutions office has opened Recognized value: Student success and generous financial aid ■ s in Independence. The Cleveland-area IDEA EXCHANGE: The Entrepre- earn JCU a top regional spot in the U.S. News and World Report office, which will serve as a sales and neur’s Idea Exchange is still going service hub, is part of Canon Business strong since its founding in March, “Best Colleges, Best Values” comparison. Solutions’ larger growth strategy; it is according to organizer Corrine one of 15 offices that opened in metro- Beller. The program is for any person politan areas this past year. Canon with a business idea, at any level of The John Carroll experience is more than the quickest path to a Business Solutions currently serves development. A featured speaker has degree or getting that first job. We inspire and prepare our students nine counties with plans to expand in been added to the format, which also to engage the world as creative, innovative, and ethical leaders in the 2011 throughout Ohio and surrounding includes informal discussions facilitat- workplace and throughout their lives. areas. The new office will employ 11 ed by seasoned entrepreneurs and with plans to double that figure in 2011. professionals in a small-group setting. Meetings, which are the third Thursday ■ WORKING OUT: Brothers-in-law of odd-numbered months, are held at Brad Newcomb, Jonathan Slain and the University of Akron’s College of www.jcu.edu/success Michael Hall opened their fifth Fitness Business Administration. 20101213-NEWS--18-NAT-CCI-CL_-- 12/9/2010 8:57 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 BANKS IN NORTHEAST OHIO

RANKED BY DEPOSITS(1)

Northeast Ohio Name deposits (millions) Employees Address (companywide) Rank Phone/Web site 6-30-2010 6-30-2009 % change Offices 6-30-2010 Holding company Top local executive KeyBank NA Henry L. Meyer III 1 127 Public Square, Cleveland 44114 $13,395.3 $14,896.6 -10.1% 120 15,517 KeyCorp chairman, CEO (216) 689-3000/www.keybank.com Cleveland KeyCorp PNC Bank 2 1900 E. Ninth St., Cleveland 44114 $8,767.3 $23,798.4 -63.2% 159 48,939 PNC Financial Services Group Inc. Paul Clark (216) 222-2000/www.pnc.com Pittsburgh regional president Huntington National Bank Daniel P. Walsh Jr. 3 917 Euclid Ave., Cleveland 44115 $8,171.1 $7,675.1 6.5% 136 10,045 Huntington Bancshares Inc. president (800) 480-2265/www.huntington.com Columbus Greater Cleveland region FirstMerit Bank NA 4 106 S. Main St., Akron 44308 $7,136.0 $6,757.2 5.6% 125 3,095 FirstMerit Corp. Paul G. Greig (888) 384-6388/www.firstmerit.com Akron chairman, CEO Charter One Kenneth E. Marblestone 5 1215 Superior Ave., Cleveland 44114 $6,941.5 $6,561.1 5.8% 111 16,352 Royal Bank of Scotland Group PLC president (216) 566-5300/www.charteronebank.com Edinburgh, Scotland Ohio region JPMorgan Chase & Co. James M. Malz 6 1300 E. Ninth St., Cleveland 44114 $4,791.4 $4,653.5 3.0% 97 173,596 JPMorgan Chase & Co. president (877) 226-5663/www.chase.com New York Northeast Ohio market Fifth Third Bank Todd F. Clossin, regional 7 600 Superior Ave. E, Cleveland 44114 $4,402.7 $4,360.4 1.0% 86 20,479 Fifth Third Bancorp president and CEO, Fifth Third (216) 274-5300/www.53.com Cincinnati Bank, Northeastern Ohio U.S. Bank NA Kurt C. Treu 8 1350 Euclid Ave., Cleveland 44115 $2,057.0 $1,970.9 4.4% 111 57,128 U.S. Bancorp president (216) 623-9300/www.usbank.com Minneapolis U.S. Bank, Cleveland Lorain National Bank 9 457 Broadway Ave., Lorain 44052 $975.4 $1,040.8 -6.3% 20 273 LNB Bancorp Inc. Daniel E. Klimas (440) 244-6000/www.4lnb.com Lorain president, CEO The Farmers National Bank of Canfield 10 20 S. Broad St., Canfield 44406 $635.8 $593.1 7.2% 13 265 Farmers National Banc Corp. John S. Gulas (330) 533-3341/www.fnbcanfield.com Canfield president, CEO Citizens Banking Co. 11 100 E. Water St., Sandusky 44870 $529.7 $508.9 4.1% 12 287 First Citizens Banc Corp. James O. Miller (419) 625-4121/www.citizensbankco.com Sandusky president, CEO Middlefield Banking Co. 12 15985 E. High St., Middlefield 44062 $475.8 $361.0 31.8% 8 91 Middlefield Banc Corp. Thomas G. Caldwell (440) 632-1666/www.middlefieldbank.com Middlefield president, CEO Citizens Bank 13 One Citizens Banking Center, Flint, Mich. 48502 $375.7 $371.9 1.0% 14 1,985 Citizens Republic Bancorp Inc. Jamie Lynch (800) 676-6276/www.citizensbanking.com Flint, Mich. Ohio district president Cortland Savings and Banking Co. 14 194 W. Main St., Cortland 44410 $371.2 $387.1 -4.1% 14 146 Cortland Bancorp James M. Gasior (330) 637-8040/www.cortland-banks.com Cortland president, CEO First National Bank 15 112 W. Market St., Orrville 44667 $311.7 $283.6 9.9% 14 104 National Bancshares Corp. David C. Vernon (330) 682-1010/www.fnborrville.com Orrville president, CEO First National Bank of Pennsylvania 16 166 Main St., Greenville 16125 $283.5 $259.5 9.2% 11 2,125 F.N.B. Corp. Stephen J. Gurgovits (800) 494-2265/www.fnb-online.com Hermitage, Pa. president, CEO Andover Bank 17 19 Public Square, Andover 44003 $253.9 $232.5 9.2% 8 91 Andover Bancorp Inc. Martin R. Cole (440) 293-7605/www.andoverbankohio.com Andover president, CEO Liberty Bank NA 18 2351 Edison Blvd., Twinsburg 44087 $223.0 $142.8 56.1% 3 47 NA William A. Valerian (330) 425-3033/www.libertybankna.com chairman, president, CEO Portage Community Bank 19 1311 E. Main St., Ravenna 44266 $194.8 $182.4 6.8% 2 48 Portage Bancshares Inc. Richard J. Coe (330) 296-8090/www.pcbbank.com Ravenna CEO Farmers Savings Bank 20 111 W. Main St., Spencer 44275 $186.6 $169.0 10.4% 2 29 NA Thomas W. Lee (330) 648-2441/www.fsb-spencer.com president, CEO Western Reserve Bank 21 4015 Medina Road, Medina 44258 $185.7 $173.3 7.2% 3 35 Western Reserve Bancorp Inc. Edward J. McKeon (330) 764-3131/www.westernreservebank.com Medina president, CEO Independence Bank 22 4401 Rockside Road, Independence 44131 $144.8 $134.2 7.9% 1 23 Independence Banccorp Christopher Mack (216) 447-1444 Independence president Premier Bank and Trust(2) 23 6141 Whipple Ave. NW, North Canton 44720 $139.2 $157.4 -11.6% 4 57 Ohio Legacy Corp. Rick L. Hull (330) 478-1000/www.mypremierbankandtrust.com North Canton president, CEO Buckeye Community Bank 24 105 Sheffield Center, Lorain 44055 $133.6 $128.9 3.7% 1 26 Buckeye Bancshares Inc. Bruce E. Stevens (440) 233-8800/www.buckeyebank.com Lorain president, CEO Consumers National Bank 25 614 E. Lincoln Way, Minerva 44657 $116.6 $113.3 2.8% 5 103 Consumers Bancorp Inc. Ralph J. Lober II (330) 868-7701/www.consumersbank.com Minerva president, CEO Sutton Bank 26 3 S. Main St., Attica 44807 $112.6 $105.4 6.8% 6 98 Sutton Bancshares Inc. Eric A. Gillett (419) 426-3641/www.suttonbank.com Attica, Ohio vice chairman, CEO Croghan Colonial Bank 27 323 Croghan St., Fremont 43420 $83.0 $78.3 6.0% 3 149 Croghan Bancshares Inc. Rick M. Robertson (419) 332-7301/www.croghan.com Fremont, Ohio president, CEO Lake National Bank 28 7402 Center St., Mentor 44060 $82.4 $81.2 1.6% 1 18 NA Richard T. Flenner Jr. (440) 205-8100/www.lakenationalbank.com president, CEO Apple Creek Banking Co. 29 21 E. Main St., Apple Creek 44606 $75.4 $73.9 2.0% 6 40 Apple Creek Banc Corp. Kurt Kline (330) 698-5003/www.applecreekbank.com Apple Creek CEO The First National Bank of Bellevue 30 120 North St., Bellevue 44811 $71.7 $69.3 3.5% 2 41 First Bancshares Inc. Dean J. Miller (419) 483-7340/www.fnblifetime.com Bellevue president, CEO The Park National Bank 31 50 N. Third St., Newark 43058 $68.0 $66.5 2.3% 3 1,774 Park National Corp. Dan DeLawder (740) 349-8451/www.parknationalbank.com Newark, Ohio chairman, CEO

See LIST Page 20 20101213-NEWS--19-NAT-CCI-CL_-- 12/10/2010 2:13 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

ON THE WEB Story from Contractors: Builders cite financing difficulties www.CrainsCleveland.com. continued from PAGE 3 require more financial information AN UPHILL CLIMB Mr. Gingerich said there is more than before. Former VP at optimism afoot because financing Financing also is a big issue for Skoda Minotti’s annual survey of construction contractors and the real estate woes have eased a little and commercial property owners and industry shows continued challenges. Akron General megaprojects are on the horizon. developers. Have you had more or fewer opportunities this year? But making it to tomorrow is the Asked in the survey to list the back as boss more immediate concern. To cope, sources they use for new develop- 2010 2009 2008 contractors are seeking more work ment and acquisitions, 50% of the Akron General Health outside the area and are pursuing respondents cite private equity, More opportunities 32% 27% 39% System announced the smaller projects. 40% say seller financing and 38% Fewer opportunities 43 49 36 return of Alan Papa, who Hamilton Biggar, vice president say regional banks. The most signif- will take over as president of its of Cleveland-based Drake Construc- icant obstacle to getting a deal done 511-bed medical center in tion Co., said the downturn has is credit, according to 42% of the Over the last year, has your ability What is the biggest threat to your downtown Akron. changed the general contractor’s respondents. However, 60% say to obtain financing ... business over next 12 months? Mr. Papa, who will begin his willingness to take on out-of-town they the credit market will loosen new role Jan. 31, comes from work. up in the coming year. responses responses Mt. Carmel-West, a Trinity Health “It used to be we worked out of hospital in the Columbus area, town within an hour-and-a-half Big projects to the rescue? Decreased slightly 40% Lack of work 69% where he served as president drive. Now we’re in the car seven Relief for construction contrac- Decreased significantly 25 Tightening credit 16 and chief operating officer since hours, often going to places without tors, if not developers, may loom on 2007. He will replace Dr. Jack air service,” Mr. Biggar said. the horizon in downtown Cleveland Increased 9 Material costs 3 Mitstifer, who has served in an Half of Drake’s work now is when construction begins on the interim role as Akron General’s outside Northeast Ohio, mostly medical mart and convention center, Stayed the same 26 Other 12 president of inpatient services involving retail properties and the casino and the Flats East Bank since March 2009. federally financed renovations of Neighborhood and its Ernst & Real estate owners/developers: Real estate owners/developers: Prior to his work at Mt. affordable and low-income housing Young Tower office building. Are you seeing decreasing rents in How do you plan to manage Carmel-West, Mr. Papa served complexes dating from the 1970s. Mr. Biggar said those big-ticket the market? increased vacancies if they occur? for more than eight years as “Much of the traditional work has jobs will occupy large contractors Akron General Health System’s dried up,” Mr. Biggar said. and free up opportunities for smaller responses responses senior vice president for network For instance, outfitting offices for contractors for projects in the range Significant decrease 37% services and operations. tenants moving into new space was of $20 million and below. Lower rents 68% Mr. Papa holds degrees from a steady source of business at one Dominic Ozanne, CEO of Ozanne Increase marketing 47 Slight decrease 46 Youngstown and Cleveland state time. Construction Co., said he’s confident universities. — Timothy Magaw “Now they’re going with a little the megaprojects will stabilize Other cash sources 39 No decrease 17 paint and new carpet,” Mr. Biggar much of the construction market. said. “Cleveland does not follow any- Building contractors and subcon- one else’s script,” Mr. Ozanne said. tractors also are coping by going “In terms of downtown, I’m very after smaller jobs than in the past. optimistic about what I see the Skoda Minotti reports 54% of next few years. The convention contractors are bidding on smaller center and casino will get the motor jobs than a year ago, while 26% are running for other projects.” staying in the same project range In Ozanne’s case, a variety of and 20% are seeking larger jobs. public works projects such as a jail in New Orleans and corporate Money matters matter assignments such as the new Nord- Builders are hurting because son Corp. headquarters in Westlake they’ve been hit by a financing contributed to a good year in 2010. double whammy: Tight real estate “We look forward to seeing these lending standards not only have projects moved ahead and to stay in shrunk their pool of available the game a few more years” despite business as developers scrounge for the current challenges, Mr. Ozanne money, but contractors also face said. more trouble financing their Overall, Skoda Minotti’s Mr. companies’ operations. Gingerich said, the tenor of this Two years after a financial crisis year’s outlook is more positive than rocked the country, 40% say their last year’s. ability to obtain financing was “We believe we are reaching the down slightly this year, and 25% bottom,” Mr. Gingerich said, though said it decreased significantly. One he added, “Reaching some form of thing that’s up, though, is that 72% normalcy will be a long, winding of the contractors report lenders road.” ■

Business Lending Made Easy! 9ÕÊ >ÛiÊ>ÊvÀi`ÊÊÌ iÊL>}ÊLÕÃiÃÃ°Ê7i½ÀiÊi`}ÊvÀÊV>«Ì>Ê «ÀÛiiÌ]ÊÛiÌÀÞ]ÊÀi>ÊiÃÌ>Ìi]Ê}ÀÜÌ °Ê Ì>VÌÊiÊvÊÕÀÊ iÀV>Ê i`}Ê/i>Ê>`ÊÃiiÊÜ ÞÊÜi½ÀiÊÌ iÊ °

WELCOME TO The Middleﬁeld Banking Company 888-801-1666 www.middleﬁeldbank.com

>À`ÊÊ{{äÓnÈ£ÓÓÓÊUÊ iÜLÕÀÞÊÊ{{äxÈ{ÇäääÊUÊ >Ê"vwViÊÊnnnnä££ÈÈÈÊUÊ7iÃÌÊÊ{{äÈÎÓ£ÈÈÈ "ÀÜiÊÊ{{ä{ÎÇÇÓääÊUÊ >ÌÕ>ÊÊÎÎäÓÇ{änn£ÊUÊ>ÀÀiÌÌÃÛiÊÊÎÎäxÓÇÓ£Ó£ÊUÊ ÀÌ>`ÊÎÎäÈÎÇÎÓän 20101213-NEWS--20-NAT-CCI-CL_-- 12/9/2010 8:57 AM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010 BANKS IN NORTHEAST OHIO

RANKED BY DEPOSITS(1)

Northeast Ohio Name deposits (millions) Employees Address (companywide) Rank Phone/Web site 6-30-2010 6-30-2009 % change Offices 6-30-2010 Holding company Top local executive Ohio Commerce Bank 32 24400 Chagrin Blvd., Beachwood 44122 $63.5 $49.2 29.0% 1 17 NA Dell R. Duncan (216) 910-0550/www.ohiocommercebank.com president, CEO Farmers State Bank Community Independent Bancorp 33 11 S. Main St., West Salem 44287 $61.8 $56.3 9.9% 5 36 Inc. Marlene Barkheimer (419) 853-4631/https://farmersstate-oh.com West Salem president, CEO The Bank of Magnolia Co. 34 122 N. Main St., Magnolia 44643 $59.1 $59.7 -1.0% 3 23 Magnolia Bancorp Inc. Kevin Greer (330) 866-9392/www.bankofmagnolia.com Magnolia president Commercial & Savings Bank 35 91 N. Clay St., Millersburg 44654 $34.9 $27.3 27.6% 4 143 CSB Bancorp Inc. Rick L. Ginther (330) 674-9015/www.csb1.com Millersburg president, CEO National Bank and Trust Co.(3) NB&T Financial Group Inc. 36 5603 Ridge Road, Parma 44129 $17.9 NA NA 1 231 Employee Stock Ownership Plan John J. Limbert (440) 884-1112/www.nbtdirect.com Wilmington president, CEO Woodforest National Bank 37 13301 E. Freeway Drive, Houston 77015 $13.8 $10.5 31.8% 17 3,765 Woodforest Financial Group Inc. Robert E. Marling Jr. (877) 968-7962/www.woodforest.com Houston, Texas CEO Source: Federal Deposit Insurance Corp., www.fdic.gov, Summary of Deposits reports. Crain's Cleveland Business does not independently verify the information and there is no RESEARCHED BY Deborah W. Hillyer guarantee these 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) Banks with deposits in Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties are included in this list. Only deposits from those counties are used for the NE Ohio deposit numbers. (2) Formerly Ohio Legacy Bank NA. (3) Formerly American National Bank. LARGEST SAVINGS INSTITUTIONS

RANKED BY NORTHEAST OHIO DEPOSITS(1)

Deposits Non-performing loans Company name 2010 entire % of gross Net Headquarters address market share Total assets $ millions loans income Top local executive Rank Phone/web site 6-30-2010 6-30-2009 % change %(2) ($millions) 6-30-2010 6-30-2010 ($millions) Title Third Federal Savings & Loan Assn. 1 7007 Broadway Ave., Cleveland 44105 $6,281.2 $6,191.4 1.5% 7.5 $10,894.3 $227.1 2.5% $12.9 Marc A. Stefanski (216) 441-6000/www.thirdfederal.com chairman, president, CEO Ohio Savings Bank, A Division of New York Community Bank(3) Robert J. Tolomer 2 1801 E. Ninth St., Cleveland 44114 $2,438.7 $3,502.2 -30.4% 2.9 $39,788.7 $851.8 3.1% $266.3 executive vice president, officer-in- (216) 588-4100/www.amtrust.com charge First Place Bank 3 P.O. Box 551, Warren 44482 $1,838.6 $1,764.1 4.2% 2.2 $3,152.6 $91.5 3.6% ($25.5) Steven R. Lewis (330) 373-1221/www.firstplace.net CEO Dollar Bank FSB 4 1301 E. Ninth St., Cleveland 44114 $1,595.8 $1,460.7 9.3% 1.9 $5,746.1 $47.5 1.1% $22.4 Andrew D. Devonshire (216) 736-8900/www.dollarbank.com president, Ohio banking region Home Savings & Loan Co. 5 275 Federal Plaza W., Youngstown 44503 $1,243.9 $1,335.1 -6.8% 1.5 $2,314.9 $155.1 8.5% ($9.5) Douglas M. McKay (330) 742-0500/www.homesavings.com chairman, president, CEO First Federal Savings & Loan Assoc. 6 14806 Detroit Ave., Lakewood 44107 $1,001.1 $952.5 5.1% 1.2 $1,237.6 $17.0 1.8% $0.4 Gary R. Fix (216) 221-7300/www.ffl.net president, CEO, managing officer Park View Federal Savings Bank 7 30000 Aurora Road, Solon 44139 $695.7 $764.5 -9.0% 0.8 $867.5 $69.1 11.3% ($7.4) Robert J. King Jr. (440) 914-3900/www.parkviewfederal.com president, CEO Westfield Bank FSB 8 Two Park Circle, Westfield Center 44251 $351.8 $296.3 18.7% 0.4 $500.5 $4.5 1.3% $1.2 Jon W. Park (800) 368-8930/www.westfield-bank.com president First Federal S&L Assn. of Lorain 9 3721 Oberlin Ave., Lorain 44053 $349.7 $321.6 8.7% 0.4 $450.4 $13.2 3.4% $0.5 John R. Malanowski (440) 282-6188/www.firstfedlorain.com president, COO Wayne Savings Community Bank 10 151 N. Market St., Wooster 44691 $291.7 $284.4 2.6% 0.4 $407.5 $3.9 1.6% $1.1 Phillip E. Becker (330) 264-5767/www.waynesavings.com president, CEO Geauga Savings Bank 11 10800 Kinsman Road, Newbury 44065 $253.8 $261.8 -3.1% 0.3 $432.8 $26.5 9.4% $0.1 Allen Lencioni Sr. (440) 564-9441/www.geaugasavings.com president, CEO

CFBank Eloise Mackus Therese A. Liutkus 12 2723 Smith Road, Fairlawn 44333 $131.6 $122.0 7.8% 0.2 $273.3 $7.7 3.4% ($5.3) interim CEO (330) 666-7979/www.cfbankonline.com president, CFO Century Bank(4) 13 1640 Snow Road, Parma 44134 $122.6 $124.9 -1.8% 0.2 $129.5 $2.9 3.3% ($1.0) Jeffrey J. Calabrese (216) 351-7000/www.centurybankoh.com president, CEO Home Savings Bank 14 142 N. Water St., Kent 44240 $113.8 $103.5 9.9% 0.1 $138.1 $2.0 1.9% $0.3 Howard T. Boyle II (330) 673-9827/www.homesavingsbnk.com president, CEO North Akron Savings Bank 15 158 E. Cuyahoga Falls Ave., Akron 44310 $111.6 $108.1 3.2% 0.1 $159.2 $2.5 2.2% $0.2 Stephen D. Hailer (330) 434-9137/www.northakronsavingsbank.com president, CEO Conneaut Savings Bank 16 305 Main St., Conneaut 44030 $75.3 $64.6 16.5% 0.1 $88.5 $0.8 1.5% $0.1 Philip Heffelfinger (440) 599-8121 /www.conneautsavings.com president, CEO Valley Savings Bank 17 140 Portage Trail, Cuyahoga Falls 44222 $71.4 $67.8 5.3% 0.1 $107.5 $0.1 0.1% $0.5 Ann Durr (330) 923-0454/www.valleysavingsbank.com president, COO Source: Highline Financial LLC. NA=Not available. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete RESEARCHED BY Deborah W. Hillyer or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. (1) Deposit information includes branches located in Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties, as of June 30, 2010, and June 30, 2009. All other numerical data is institution-wide as of June 30, 2010. (2) Includes all financial institutions in the 15 county coverage area. (3) Formerly AmTrust Bank, purchased by New York Community Bank, Dec. 4, 2009. (4) First Federal of Lakewood has signed an agreement to acquire Century Bank. The deal is expected to close in December. 20101213-NEWS--21-NAT-CCI-CL_-- 12/9/2010 4:21 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

Contact: Genny Donley Copy Deadline: Wednesdays @ 2:00 p.m. Phone: (216) 771-5172 All Ads Pre-Paid: Check or Credit Card Fax: (216) 694-4264 E-mail: [email protected] REAL ESTATE LEGAL NOTICES NOTICE TO VENDORS NOTICE TO BIDDERS LEGAL NOTICE Notice is hereby given that sealed proposals will be received in the Board Notice is hereby given that sealed proposals will be received in the Board of County Commissioners Office of Procurement & Diversity, Room 110, of County Commissioners Office of Procurement & Diversity, Room 110, OHIO TURNPIKE COMMISSION County Administration Building, 1219 Ontario Street, Cleveland, Ohio County Administration Building, 1219 Ontario Street, Cleveland, Ohio 682 Prospect Street 44113 until 11:00 A.M. local time on January 14, 2011 for lease of office 44113 until 11:00 A.M., (Local Time) on: space for a Public Safety Service Center (PSSC) for the period June 01, 2011 Berea, Ohio 44017 to May 31, 2016. January 25, 2011 for: The sale of County-owned property no longer (440) 234-2081 needed for public use: Permanent Parcel Nos. 110-04-005 to 007, 60 to Required geographic locations: The space must be in an area bounded 63, 80 to 82 and 117 to 124 located at 12212 St. Clair Avenue, REQUEST FOR PROPOSALS approximately by: Cleveland, Ohio, as per County Requisition No. CT-10-18993. Any CONSULTING SERVICES RELATED TO questions concerning the property may be directed to the Real Estate The PSSC must be constructed within Cuyahoga County, in a location THE OHIO TURNPIKE COMMISSION’S Division, at (216) 698-2517. that will minimize the effects of any local hazards (hazmat routes, rail PROPERTY AND CASUALTY INSURANCE PROGRAM lines, airports, high band snow areas, areas of flooding, high voltage The official closing time shall be determined by the wall clock located The Ohio Turnpike Commission (“Commission”) has issued a Request for power lines), cannot be in a 100-year flood plain nor will it change or in the Office of Procurement & Diversity, Room 110, County Proposals (“RFP”) for Consulting Services Related to the Ohio Turnpike alter listed or nationally designated historic sites or structures. Ease-of- Administration Building, 1219 Ontario Street, Cleveland, Ohio 44113. Commission’s Property and Casualty Insurance Program, with services to access for public officials is essential. Close proximity to government Late bids will be returned unopened. commence in late January 2011 as described in the RFP Specifications. offices and non-hazmat route highways for easy access by agency representatives and elected officials should be demonstrated in respons- Specification and proposal blanks may be obtained at the Office of One (1) original and three (3) copies of sealed proposals will be es. A set back from public rights-of-way shall be a minimum of 200 Procurement & Diversity (Same Address). Interested bidders may visit received at the Commission’s offices, 682 Prospect Street, Berea, OH yards. the site (12212 St. Clair Avenue, Cleveland, Ohio) for a walk-thru on 44017, c/o the Purchasing Department, until 2:00 P.M. (E.S.T.), Tuesday, January 11, 2011 at 11:00 AM. January 6, 2011. The official closing time shall be determined by the wall clock located in the Office of Procurement & Diversity. (SAME ADDRESS) Each purchase offer bid must be accompanied by a “Certified Check”, THE FIRM SELECTED AS THE CONSULTANT UNDER THIS Late proposals will be returned unopened. “Cashier’s Check” or “Money order” drawn on a solvent bank or Savings RFP WILL BE PRECLUDED FROM BIDDING ON THE and Loan Association, payable to the Treasurer of Cuyahoga County, COMMISSION’S PROPERTY AND CASUALTY INSURANCE There will be a Pre-proposal Conference on December 29, 2010 at 10:00 Ohio, in a sum equal to 5% of the amount bid, conditioned that if such bid PROGRAM. CONSULTANTS, WITH THEIR RESPONSES TO A.M. local time at The Department of Central Services, 2nd floor confer- is accepted, the bidder shall proceed with the purchase. The balance of the THIS RFP, MUST ALSO DISCLOSE TO THE COMMISSION ANY ence room, 1642 Lakeside Avenue, Cleveland, OH 44114. IT IS STRONG- amount bid is due from the successful bidder within sixty (60) days after POTENTIAL CONFLICTS OF INTEREST OR BUSINESS LY RECOMMENDED THAT INTERESTED VENDORS ATTEND. award by the Board of County Commissioners. AFFILIATIONS WITH OTHER INSURANCE BROKERS AND/OR CARRIERS. Specifications and proposal blanks may be obtained at the Board of The above described parcel and interest to the conveyed will be by County Commissioners Office of Procurement & Diversity. (SAME Quit-Claim Deed. The RFP is on file and available from the Purchasing Department at (440) ADDRESS) Questions may be addressed to Mr. John Myers, Real Es- 234-2081. This document will be forwarded upon request and without tate Manager at 216.698.2517. The Board of County Commissioners reserves the right to accept or reject any or all bids. charge to any interested, prospective Responding Insurance Consultants. Payment will only be made upon approval of the Board of County All inquiries concerning this RFP must be submitted in writing to Kevin Commissioners and payments will be warrants issued by the County By order of the Board of County Commissioners of Cuyahoga County. Golick, Purchasing Manager, via email to [email protected], Auditor upon notification from the Commissioners. Jimmy Dimora Timothy F. Hagan Peter Lawson Jones or facsimile [fax number (440) 234-0232], with the Inquiry Period ending at the close of business 5:00 P.M. (E.S.T.) on December 28, 2010. The Board of County Commissioners reserves the right to accept or reject Lenora Lockett, Director, Office of Procurement & Diversity any proposals or any part or all parts of any proposal submitted, and waive The Commission reserves the right to require Responding Insurance all technicalities. Publish in Crain’s Cleveland Business Consultants to submit additional written or oral clarifications to their December 13, 2010 and December 20, 2010 Proposals. Each proposal must state in full the name and address of each person, firm or corporation interested in the proposal submitted. This notice may also be viewed at the following Cuyahoga County The Commission further reserves the right to reject any and all Proposals Internet Web Site: www.opd.cuyahogacounty.us by clicking on the show and to waive irregularities and defects. The Commission will notify the By order of the Board of County Commissioners of Cuyahoga County. events tab and the bid due date month. A list of open bids will appear on Successful Insurance Consultant as soon as practicable after the receipt Jimmy Dimora Timothy F. Hagan Peter Lawson Jones the next screen. and review of Proposals. Lenora Lockett, Director, Office of Procurement & Diversity OHIO TURNPIKE COMMISSION

Advertise in Crain’s Cleveland Business on December 13, 2010 and Published in Crain’s Cleveland Business December 13, 2010 December 20, 2010 ATTENTION REALTORS: Now is a great time to promote your Luxury Properties to high-end prospects NOTICE TO VENDORS NOTICE TO BIDDERS Notice is hereby given that sealed proposals will be received in the Board Notice is hereby given that sealed proposals will be received in the Board AND receive reduced rates on of County Commissioners Office of Procurement & Diversity, Room 110, of County Commissioners Office of Procurement & Diversity, Room 110, your advertising. County Administration Building, 1219 Ontario Street, Cleveland, Ohio County Administration Building, 1219 Ontario Street, Cleveland, Ohio 44113 until 11:00 A.M. local time on February 28, 2011 for lease of 44113 until 11:00 A.M., (Local Time) on: office space for Departments of Senior & Adult Services, Child Support Call Genny Donley at (216) 771-5172 or Enforcement Agency & Department of Development for the period January 25, 2011 for: The lease of County-owned property no longer October1, 2011 thru September 30, 2016. needed for public use: Permanent Parcel Nos. 101-09-027 located at 1264 e-mail [email protected] for more details. Required geographic locations & 1276 W. Third Street, Cleveland, Ohio, as per County Requisition : The space must be in an area bounded by: No. CT-10-18978. Any questions concerning the property may be directed to the Real Estate Division, at (216) 698-2517. North: Lake Erie East: E. 55th St South: Carnegie Ave West: W. 65th St The official closing time shall be determined by the wall clock located Crain’s Cleveland Business in the Office of Procurement & Diversity, Room 110, County The official closing time shall be determined by the wall clock located in Administration Building, 1219 Ontario Street, Cleveland, Ohio 44113. the Office of Procurement & Diversity. (SAME ADDRESS) Late bids will be returned unopened. Online Property Search Late proposals will be returned unopened. There will be a Pre-proposal Conference on January 11, 2011 at 10:00 AM Specification and proposal blanks may be obtained at the Office of Powered by LoopNet, at 1701 E. 12th St., Senior & Adult Offices – Lower Level Conference Procurement & Diversity (Same Address). Interested bidders may visit Room. IT IS STRONGLY RECOMMENDED THAT INTERESTED the site (1264 & 1276 W. Third Street, Cleveland, Ohio) for a No. 1 in Commercial Real Estate online VENDORS ATTEND. walk-thru on Tuesday, January 11, 2011 at 2:00 PM. Specifications and proposal blanks may be obtained at the Board of The Board of County Commissioners reserves the right to accept or reject Looking for property? County Commissioners Office of Procurement & Diversity. (SAME any or all bids. Search thousands of local listings ADDRESS) Payment will only be made upon approval of the Board of County By order of the Board of County Commissioners of Cuyahoga County. Selling or leasing a property? Commissioners and payments will be warrants issued by the County Jimmy Dimora Timothy F. Hagan Peter Lawson Jones Auditor upon notification from the Commissioners. Get your property featured through Crain’s Lenora Lockett, Director, Office of Procurement & Diversity The Board of County Commissioners reserves the right to accept or reject any proposals or any part or all parts of any proposal submitted, and waive Publish in Crain’s Cleveland Business www.CrainsCleveland.com/LoopNet all technicalities. December 6, 2010 and December 13, 2010 Each proposal must state in full the name and address of each person, firm or corporation interested in the proposal submitted. This notice may also be viewed at the following Cuyahoga County For advertising opportunities Internet Web Site: www.opd.cuyahogacounty.us by clicking on the show By order of the Board of County Commissioners of Cuyahoga County. events tab and the bid due date month. A list of open bids will appear on contact Genny Donley Jimmy Dimora Timothy F. Hagan Peter Lawson Jones the next screen. [email protected] Lenora Lockett, Director, Office of Procurement & Diversity Prepared By: Wanda Graves, Real Estate Division (DS) Advertise in Crain’s Cleveland Business on December 13, 2010 and 216-771-5172 December 20, 2010 CLASSIFIED CONTINUED ON NEXT PAGE >>>>> WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.” 20101213-NEWS--22-NAT-CCI-CL_-- 12/10/2010 1:17 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010

participants while the number of partici- tions — that could be liquidated within IN BRIEF pants in (defined contribution) plans one month was 99.6%, Moody’s said. continues to go up.” — Doug Including restricted cash, the median Hyland: Dividend recaps Corporate retirement Halonen, Pensions & Investments slipped to 90%. plans on the upswing Of those surveyed, slightly less than ■ KEEP ON ROLLING: half, 46%, had alternative in- become more common Third-quarter asset levels rise Robert J. Keegan, former vestments such as hedge from previous quarter chairman, president and CEO funds or private equity, continued from PAGE 1 Microsoft, Oracle and IBM. Hyland U.S. corporate retirement plans had of Goodyear Tire & Rubber Moody’s said. Hedge funds Another Thoma Bravo company, Software had revenues of about combined assets of $5.661 trillion as Co., has been elected to Xerox and private equity can lock up Flexera Software Inc. of Chicago, is $155 million in the 12 months that of Sept. 30, up 6.5% from three Corp.’s board of directors. cash by limiting how quickly executing a dividend recapitaliza- ended Sept. 30. months earlier, according to the “Bob brings to the Xerox investors may pull out. Such tion deal as well. It aims to raise Federal Reserve’s Flow of Funds report board a proven track record investments add stress to $215 million, $90 million of which Reasons for recaps issued last week. of business success,” said balance sheets for borrowers will go to shareholders. Software firms often can handle The third-quarter increase reversed a Xerox chairman and CEO Keegan with debt sold to short-term A principal from Thoma Bravo extra debt given their reduced need decline of 6.8% in the previous quarter. Ursula Burns. “His leadership experi- investors that abruptly may demand re- declined to comment on the divi- for capital, said Terence Tchen, Corporate defined benefit plan ence, respected financial and business payment. — Melanie Evans, Modern dend recapitalization plan for Hyland managing director of Houlihan assets totaled $2.154 trillion as of acumen and global expertise will serve Healthcare Software. A spokeswoman from the Lokey, a Los Angeles-based invest- Sept. 30, up 5% from the previous Xerox and our shareholders well, and Westlake company who spoke with ment bank. quarter. Total assets in corporate will complement the strong talent of ■ TRASH TALK: About 31% of Crain’s on Dec. 3 did not call back or “For that type of company, defined contribution plans were $3.507 our board of directors.” bottled water and water cooler bottles respond to two follow-up phone putting on some type of leverage isn’t trillion, up 7.5%. Mr. Keegan, 63, served as Akron- were recycled in 2009, according to messages and an e-mail sent last unreasonable,” Mr. Tchen said. The value of equities in corporate based Goodyear’s president and CEO the National Association for PET week. Dividend recap deals also can sig- defined benefit plans was $750 billion, from January 2003 to April of this year Container Resources and the Interna- Such deals are becoming more nify that investors have confidence up 6.8%, while the value of bonds was and as chairman from July 2003 to tional Bottled Water Association. common because they give invest- in a given company’s ability to grow $364 billion, up 2.8%. October of this year. Prior to joining Although recycling rates have doubled ment firms — which often couldn’t in value, Mr. Tchen said. In corporate defined contribution Goodyear in 2000 as chief operating since 2005, the rate is only a slight sell companies for a good price “They’re saying, ‘Now is not the plans, the value of equities was $1.082 officer, he was president of the increase from 2008, when 30.9% of during the recession — a quick way time we’ll get the biggest bang for trillion, up 11%, while the value of consumer imaging business at East- the containers were recycled, the orga- to return cash to investors, according our buck in terms of a sale or an bonds was $105 billion, down 2.8%. man Kodak Co. nizations said in their reports, “2009 to two experts who spoke with exit,’” he said. Corporate defined benefit plans saw Mr. Keegan received a bachelor of Post Consumer PET Bottle Bale Com- Crain’s. They added that some A dividend recap deal also can outflows of $21.5 billion for the quarter, science degree in mathematics from position Analysis” and “2009 Report on companies are executing dividend indicate that a company is among while corporate defined contribution LeMoyne College in Syracuse, N.Y., PET Water Bottle Recycling.” (PET recaps now in case Congress chooses the stronger businesses in the port- plans had inflows of $52.5 billion. and an MBA in finance from the Univer- stands for polyethylene terephthalate, a not to renew Bush-era laws that folio of its majority owner, said Alan Total assets in state and local sity of Rochester, where he currently is plastic resin and a form of polyester.) reduced tax rates on dividends and Wink, a director with accounting government retirement funds as of on the board of trustees. Mr. Keegan The usage of recycled PET resin has capital gains. firm EisnerAmper LLP of New York. Sept. 30 were $2.729 trillion, up 6.9%, also is a board member of the Autism increased 37% as well, the organiza- The deal would burden Hyland “It might be one of the invest- while the federal government’s retire- Family Foundation of Northeast Ohio. tions said. Software with more debt, but the ments in their portfolio that, ment fund assets totaled $1.336 tril- — Tire Business “Recycling rates for bottled water company should be able to handle because of its performance, allows lion, up 1.9%. containers had a modest but positive it, according to the Moody’s and them to take money out,” Mr. Wink “The overall growth of pension ■ HEALTHY CASH AMOUNTS: increase in 2009; steady as we go,” S&P reports. said. assets was due to the positive returns Hospitals and health systems surveyed said Tom Lauria, vice president of com- Moody’s reiterated Hyland Soft- Dividend recaps can be an in equity markets during the third quar- by Moody’s Investors Service could munications at the International Bottled ware’s B2 credit rating, and S&P “attractive alternative” for owners, ter,” Craig Copeland, senior research convert nearly all their investments into Water Association. reiterated its B+ credit rating. Both especially in a poor market for selling associate for the Employee Benefit cash within one month, according to a “The doubling of the recycling rates companies gave Hyland Software a companies, Mr. Wink said. Still, the Research Institute, said in an interview. newly released report. for bottled water containers over the “stable” outlook, citing its solid cash increased debt load could prove Mr. Copeland said defined contribu- The ratings agency analyzed invest- past five years is encouraging but also flow as well as its success in expanding troublesome if the company’s profits tion plans “had positive net contribu- ment and short-term debt portfolios for a reminder that more needs to be done its product lineup and sales chan- start slipping, he said. tions for the quarter, while (defined more than 300 nonprofit hospitals and to expand recycling efforts and collec- nels through acquisitions. “If their performance deterio- benefit) plans had negative net contri- health systems. Their median percentage tion methods across the country,” he They noted, however, that the rates and they have more debt on butions because (defined benefit) plans of unrestricted cash and investments said. — Amanda Smith-Teutsch, company faces competition from their balance sheet, that’s not a have a declining number of active — or cash not tied up by donor restric- Waste & Recycling News much larger companies, including good thing,” he said. ■ REAL ESTATE CLASSIFIED REAL ESTATE FOR SALE AUCTION BUSINESS SERVICES Water Park, Go-Cart and Mini Real Estate Auction SUSTAINABILITY Centerline Drafting Service FLYNN Solid Modeling, Design & Drafting Golf Complex - Port Clinton, Ohio December 15, 2010, 11:00 AM Serving Small Business on an Attn: CEOs & CFOs ENVIRONMENTAL as needed basis since 1995 This 33 acre site contains four pools with several water features, a mini Ashland Lakes - Court Ordered Sale Tired of high For Assessments golf course, Bumper Boat pond and Go-Cart Track. The property contains Auction Site: (800) 690-9409 330-225-6053 five outbuildings that house arcade games, kitchen facilities, office, electric bills? 170 Summerset Dr., Ashland OH www.flynnenvironmental.com www.CenterlineDraftingService.com locker rooms and storage. All equipment and fixtures are still intact and Save 50-70% sell with the property. There are 17 acres of the site that are available for • 130 Total on your lighting future expansion. Many upgrades and maintenance items were done in 2010 and the park is in operating condition. This is a great opportunity to Acres energy costs purchase a turn-key business in the vacation heartland of Lake Erie, • 5 Parcels GUARANTEED! Crain’s Executive Recruiter Marblehead and Catawba Island at a fraction of the cost to build. •(8) Brick s FREE no-risk analysis Triplexes s No disruption to your BIZDOM U For additional information or to view this property: operation • Lakes, Barn Bizdom U, the nationally recognized entrepreneurship Contact Dean Miller at 419-483-7340 s 40K sq. ft. minimum boot camp founded by Dan Gilbert has announced it will open • Single Family s Payback in 12-24 months in downtown Cleveland. Tremendous opportunity to play a key role in a dynamic entrepreneurial training program. Now hiring Homes well-qualified individuals to join our Bizdom Cleveland leader- E-MAIL US YOUR AD... Visit Our Web Site For Details ship team for the following positions: [email protected] Bambeck Auctioneers Inc. • Training Leader • Recruiter • Administrative Coordinator www.bambeck.com For more information and to apply, go to www.bizdom.com/apply Why wait? Call today! OFFICE SPACE 330-931-3905 www.ROI-Energy.com For Sale Rocky River FOR LEASE Beachcliff Area RESTAURANT/BAR/RETAIL LEASE - ROCKY RIVER Landerhaven between Detroit & Lake Ask About Crain Communications, Inc. has two positions open in their 440-333-0000 EXT.777 New Year's Eve 440.449.0700 Cleveland and Akron offices. ExecutiveCaterers.com For more info, go to: Classified Ads www.crainscleveland.com/crainjobs Newer A1, 18800 sq ft, 60+parking 440-333-0000x777 WORK! 20101213-NEWS--23-NAT-CCI-CL_-- 12/10/2010 2:32 PM Page 1

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Wheeling and dealing the university’s advertising manager. “He’s United States as a result of The Dodd-Frank DECEMBER 6 - 12 become quite the professional actor, Wall Street Reform and Consumer Protec- in his own backyard but he’s not really acting — he’s being tion Act, a Jones Day partner recently The big story: Fortune Brands decided that ■ Jergens Inc. CEO Jack Schron has been himself.” explained to bankers and regulators in it might not be the best idea for one company to doing business everywhere from China to Ms. Meek said the ad will air in the Cleve- Beijing. sell products as unrelated as Titleist golf balls, Europe in recent years. But his company, land market during the Feb. 6 nationally Brett Barragate, who splits his time Moen faucets and Jim Beam liquor. It plans to which makes vises, specialty fasteners and televised football game. She wouldn’t elab- between the firm’s Cleveland and New York break the company into three separate businesses. other industrial tools, didn’t need to look far orate on details, but said the ad would play offices, traveled to China for two days to “We see the potential for even greater value by for its latest acquisition. off the same “energy” theme the speak to the China Banking Regulatory separating our businesses into focused compa- “They were about 800 yards university has touted over the last Commission about Dodd-Frank’s foreign nies at a time when they have emerged from the down the road,” Mr. Schron said, five years. In recent ads, Dr. Proenza implications. Bob Graves, who co-heads economic downturn in such strong positions,” referring to the business he just has been shown handling a glowing the Jones Day banking and finance practice, said Fortune Brands CEO Bruce Carbonari, who bought from George Whalley Co., orb of sorts to symbolize the energy accompanied him. rose through the ranks of the company, in part, which is a few doors down South at the university. The regulation creates opportunities for by serving as CEO of Moen and Fortune Brands’ Waterloo Road from his own Ms. Meek would not disclose the foreign banks, too, as U.S. banks likely will Home and Hardware division prior to 2007. quarters on Cleveland’s East Side. cost of the producing the ad or of shed and sell certain businesses because of Moen’s operations are based in North Olmsted. Like Jergens, George Whalley airing it because the school still increased constraints, Mr. Barragate said. also distributes industrial tools. Proenza is involved with production and Chinese bankers were far more versed in Partner in charge: Dennis M. Lafferty, a Jergens has purchased the assets of negotiations. Dodd-Frank than Mr. Barragate expected longtime leader in civic circles, joined Cleveland its industrial distribution business, which The University of Akron’s nearby rival, them to be. State University’s Division of primarily serves Northeast Ohio manufac- Kent State University, launched a “They had been following it as close as University Advancement as tures, Mr. Schron said. million-dollar marketing campaign this fall anyone in the United States,” he said. an executive-in-residence. Mr. George Whalley, with about 30 employees, with a series of new TV commercials. How- China’s “significant banks” do business Lafferty will be responsible will continue to sell and distribute its ever, Tom Neumann, Kent State’s associate lending and investing via branches in New for developing partnerships specialized cutting tools. vice president of university communica- York, Mr. Barragate said, and Chinese insti- between the university and Neither company disclosed revenues or tions and marketing, said the university had tutions have stated openly that they intend various stakeholders and for the sale price when the transaction was no plans to go head to head with the Akron to increase their investment in the United fostering relationships between announced last Thursday, Dec. 9. — Dan Zips on Super Bowl Sunday. States. Cleveland State and the busi- Shingler “We don’t anticipate doing any ad buys Unlike many here, Chinese bankers Lafferty ness community. He spent for the Super Bowl,” Mr. Neumann said. — seemed less judgmental about Dodd-Frank, the past 23 years with the Another Super Bowl, Timothy Magaw he said. Theirs is a practical approach, he Cleveland office of the Jones Day law firm, where said, an attempt to understand what Dodd- he was executive assistant to the managing partner another U. of Akron ad Jones Day lawyer translates Frank is and how it affects them. and office administrator. ■ The University of Akron is wrapping up its Dodd-Frank for the Chinese The China Banking Regulatory Commis- 13th Super Bowl commercial, and once again sion asked Mr. Barragate to speak, he said, New life: Premier Ventures LLC, an investor it’s starring the university’s president, Luis ■ Foreign financial institutions with noting a man who attended law school with group based in Irvine, Calif., is the new owner of Proenza. branches in the United States potentially a Jones Day partner now works for the the mostly closed Rolling Acres Mall in Akron “He’s really good at that,” said Lori Meek, will be exposed to greater regulation by the commission. — Michelle Park and plans to continue its conversion to a mixed- use property. Premier Ventures paid $3 million for the mall’s 600,000-square-foot common area. The seller was CB 225 LLC, an investor based in WHAT’S NEW BEST OF THE BLOGS Beverly Hills, Calif., that acquired the property was viewed 5.19 million times in the 27 days for $1.7 million in July 2006. Excerpts from blog entries on CrainsCleveland.com. after its release, while parodies were viewed 5.86 million times. The company found a Busy year: The Riverside Co. announced the similar pattern with a Tiger Woods Nike ad pending sale of a company in Waco, Texas, for Learned Owl owner pleased aimed at rehabilitating the golfer’s image. about $150 million in a deal that is expected to as e-book venture takes flight Ads like these are “a necessary step in the close by year’s end and should produce a return ■ rehabilitation of an athlete whose reputa- of $3 for every dollar invested by the global Count Liz Murphy, owner of the Learned tion has been damaged,” said Matt Cutler, private equity firm. The sale of The Dwyer Owl Book Shop in Hudson, among those chief marketing officer of Visible Measures. Group to TZP Group LLC, a private equity firm eager to see what Google Inc. can do for the Nancy Mauro, a former associate creative in New York City, will be Riverside’s ninth sale, e-book world. director for McCann Erickson, told The Times, or exit, of the year. Riverside bought Dwyer, a Google last week unveiled the Google “Even if the benefits aren’t immediate for holding company of seven franchise businesses eBookstore, which could shake up the way the athlete, they’re designed to be, in time focused on residential and commercial services, COMPANY: Audio-Technica, Stow digital books are sold. In a story that ran — and you can bet the creative team is for $54.5 million in 2003. prior to the e-store’s unveiling, The Wall PRODUCTS: QuietPoint noise- Street Journal said Google “hopes to upend benefiting from the tidal wave of interest.” Compound interest: Preferred Compounding canceling headphones the existing e-book market by offering an of Barberton was purchased by a group consisting open, ‘read anywhere’ model that is different Manufacturers may shift of some of its own executives and a Dallas-based Audio-Technica has introduced some high- from many competitors.” down a notch after stellar ’10 private equity firm, Wingate Partners. Preferred tech headphones that won’t break a holiday Users are able to buy books directly from ■ Compounding produces custom rubber com- shopper’s budget. Google or from multiple online retailers — Peter Klein, senior portfolio manager at pounds for molders, extruders and other manu- Both the over-ear ATH-ANC27 ($99.95) including independent bookstores — and Fifth Third Asset Management in Cleveland, facturers and has about 200 employees. Terms and the on-ear ATH-ANC25 ($79.95) combine add them to an online library was among the experts quoted were not disclosed. The sale marks the second “combine immersive sound with long-wearing tied to a Google account. in a Reuters story that said time Watermill has bought and then sold a con- comfort and make high-quality active noise- Independent booksellers will manufacturers likely will face a trolling interest in Preferred Compounding. It canceling technology more affordable than be able to install Google tech- slower-paced 2011 than their was the company’s majority owner from 1996 to ever,” Audio-Technica says. nology on their web sites so they relatively robust 2010. 1999, before buying the company again in 2001. The ATH-ANC27 over-ear model has up to can sell e-books and receive a “Profit margins across the 85% active noise-cancellation, and the ATH- percentage of revenue. sector swelled this year as School funding: The Charter School Growth ANC25 offers up to 80% active noise-cancel- “If I don’t change with what companies that cut costs to the Fund, a national nonprofit venture capital fund, lation, the company says. Both headphones is going on, I am going to be bone during the brutal reces- is putting $2 million into Breakthrough Charter feature technology that detects environmen- behind,” said Ms. Murphy, owner of the sion experienced a rebound in sales that Schools, a local charter management organiza- tal noise and applies a corresponding sound- Learned Owl (a terrific store, by the way), helped the Standard & Poor’s capital goods tion, to help open four new schools in Cleveland. canceling signal, according to Audio-Technica. who is eager to see what Google will enable. industry index to rise about 14%, more than By August 2011, Breakthrough plans to open two They also “incorporate high-efficiency dri- “People are getting e-books but they aren’t twice the gains of the broader U.S. stock new charter schools — Citizens Leadership vers, ergonomically designed earpieces and getting them from me.” market,” Reuters reported. Academy and Near West Intergenerational other refinements to deliver clear sound with Analysts still expects profits to rise next School — with the support of the money, which impactful bass, richly detailed midrange and They might be mocking, but year, but at a slower pace than in 2010. As represents a combination of low-interest loans treble and precise imaging.” at least they’re watching one analyst said, “The comparisons are go- and grants to be fulfilled over the next four years. Both models have a detachable cord, ing to be getting a lot tougher going forward.” ■ Two more schools are planned for the following enabling their use as cordless noise- Parodies of LeBron James’ “What Should Reuters said some investors see declining year. Breakthrough runs four charter schools. canceling headphones. I Do?” Nike ad continue to outpace the real margins as inevitable, as companies will For information, visit www.Audio-Technica.com. thing in online viewership, but that’s not need to add staff after cutting their opera- To keep up with local business news as it such a bad thing, according to a short piece tions dramatically during the recession. happens, visit www.CrainsCleveland.com. Send information about new products to in The New York Times. “They’re going to have to start hiring people, managing editor Scott Suttell at Visible Measures, an online video mea- so their personnel costs will start going up,” [email protected]. surement company, reported the Nike ad said Fifth Third’s Mr. Klein. 20101213-NEWS--24-NAT-CCI-CL_-- 12/10/2010 2:17 PM Page 1