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$2.00/JULY 16 - 22, 2012

Effort gears Bank seeks up to mount receiver for school levy Akron-based campaign lumber firms In lawsuit, Huntington Backers will seek help fears Empire ‘insolvency’

from businesses, but By MICHELLE PARK face a crowded ballot [email protected] The future of a group of lumber By TIMOTHY MAGAW companies based in Akron is unclear [email protected] after a judge ordered a receiver to take control of the companies amid The coalition that got behind allegations that a large amount of legislation to reform the operations the assets pledged as collateral for of the Cleveland Metropolitan School millions of dollars in bank debt either District is scrambling under a tight does not exist or may be at risk. deadline to put together a campaign In a lawsuit filed June 11 in Cuya- aimed at passing this November a hoga County Common Pleas Court, school operating levy for the first time STAN BULLARD attorneys for Huntington Bank re- in 16 years. Forest City Enterprises is considering converting to apartments the Halle Building, on Euclid Avenue in downtown Cleve- quested that a receiver be appointed The coalition of Mayor Frank land, shown here looking east on Euclid. to operate Empire Enterprises Inc., a Jackson, school district officials, the forest products and building materials Greater Cleveland Partnership and distribution holding company; its local foundations is on the verge of subsidiary, Empire Wholesale Lumber tapping a consulting firm to lead the Co., which has been in business for campaign. Firms already interviewed Halle Building could enter 63 years; and two other affiliated for the job are led by seasoned polit- entities. ical gurus Bill Burges, Alan Melamed “By all accounts, defendants are and Jeff Rusnak. unable to pay plaintiff amounts due downtown apartment mix to it, thereby creating a presumption of insolvency,” Huntington stated in its lawsuit. The filing said the bank By STAN BULLARD could be relegated to memory if the “reasonably believes that a signifi- Office space on [email protected] Cleveland-based developer pursues cant portion of the inventory and the idea. receivables defendants pledged to upper floors would The Halle Building in downtown Forest City is weighing converting plaintiff may not exist or may be in Cleveland, well-known thanks to part or most of the structure in the danger of being lost or materially be replaced by up “The Drew Carey Show” and a cele- PlayhouseSquare neighborhood to damaged.” Roman Jackson brated role as the former home of more than 200 apartments and “The immediate appointment of a Mr. Jingeling, may become apartments retaining its first floor as retail space, receiver is necessary as (Empire is) to 200 rental units under a plan Forest City Enterprises Also, GCP is gearing up to solicit according to a source who declined unable to pay their debts as they Inc. is considering. the business community to help foot to be identified because he is not See LUMBER Page 7 under nascent plan The former Halle department the bill for what advocates anticipate authorized to discuss the plan. store at 1228 Euclid Ave. is now an will be a $1 million effort. Although Forest City isn’t showing office building on its upper floors “Clearly we will ask business com- its hand, real estate observers agree INSIDE with retail space on the first floor munity to fund the campaign effort, the concept makes sense. Downtown and basement, but the office use See HALLE Page 6 and we’ll start that soon,” GCP UH continues to bolster president Joe Roman said. “But even its cancer program more importantly than that, because NEW PROJECTS ABOUND In addition to its $260 million this will be such a crowded and expen- A sample of planned or proposed May Co. Building: The Florida- at 1717 E. Ninth St., also for conver- Seidman Cancer Center, opened sive campaign field, we’ll work very apartment projects in downtown based owner, Morgan Reed Group, is sion to apartments. last year, University Hospitals has hard with our members to ensure Cleveland, a list to which the Halle studying whether to turn the empty Truman, Schofield buildings: A opened a new facility in Westlake their Cleveland-resident employees Building could be added. upper floors of the building on Public total of 76 apartments are proposed and is upgrading one in Geauga have the information necessary to Avenue Tower: A joint venture has Square into apartments. for the buildings, at 1020 Euclid Ave. County. PAGE 7 make an informed decision.” proposed to buy the long-stalled tower Hanna Annex: K&D Group of and 2000 E. Ninth St., respectively, Even John Kasich, Ohio’s Republican PLUS: condo project and turn it into 57 high- Willoughby announced plans to buy by their longtime owners, groups governor who worked with Cleveland’s end rentals. the building from the PlayhouseSquare associated with principals of CRM ■ Some Cleveland marketing Democratic mayor to move a bill Rosetta Building: MRN Ltd. plans Foundation for conversion of the office Real Estate Services of Cleveland. agencies are pitching themselves enabling the reform plan’s implemen- to spend $17 million to convert five building into 102 apartments. Plans for the Schofield Building continue as the perfect coach for sports tation through the Legislature, is floors to 85 market-rate apartments at East Ohio Gas Building: Reports to include a hotel. teams and organizations. PAGE 12 See LEVY Page 5 629 Euclid Ave. have K&D as the buyer of the building SOURCE: CRAIN’S REPORTING

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012 COMING NEXT WEEK IT’S A STEAL Auto thefts in Ohio in 2011 declined for the eighth straight year, but they went in the wrong 2012 Women of Note direction in the Cleveland and Akron markets and increased. New data show more than 6,600 cars were stolen last year in the Cleveland/Elyria/Mentor market, up 17.3% from We profile 15 of Northeast 2010, while Akron thefts rose 16.9% to 1,217. Relatively speaking, though, Ohio is not a 700 W. St. Clair Ave., Suite 310, high-auto theft state, with only the Cleveland and Toledo markets ranking in the top 100 Cleveland, OH 44113-1230 Ohio’s most prominent and nationwide in theft rate per 100,000 residents. Here’s the data for the six Ohio markets in Phone: (216) 522-1383 successful female busi- which at least 1,000 cars were stolen last year: Fax: (216) 694-4264 ness leaders, employed at www.crainscleveland.com 2011 2010 2011 thefts per 2011 Publisher/editorial director: some of Northeast Ohio’s City auto thefts auto thefts 100K pop. nat. rank Brian D. Tucker ([email protected]) biggest companies. Editor: Mark Dodosh ([email protected]) Cleveland/Elyria/Mentor 6,603 5,630 319.25 57 Managing editor: Scott Suttell ([email protected]) REGULAR FEATURES Columbus 4,223 4,445 227.23 104 Sections editor: Amy Ann Stoessel ([email protected]) Cincinnati/Middletown 3,039 3,404 144.53 207 Assistant editor: Big Issue ...... 9 Letter ...... 9 Joel Hammond ([email protected]) Classified ...... 18 List: Nursing homes..17 Toledo 1,784 1,722 274.35 79 Sports Editorial ...... 8 Personal View ...... 8 Senior reporter: Dayton 1,647 1,683 194.82 133 Stan Bullard ([email protected]) From the Publisher ..8 Reporters’ Notebook..19 Real estate and construction Reporters: Akron 1,217 1,041 173.51 164 Going Places ...... 11 The Week ...... 19 Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Ginger Christ ([email protected]) Manufacturing, marketing and retailing Research editor: Deborah W. Hillyer ([email protected]) 2012 Women of Note Honorees Cartoonist/illustrator: Rich Williams Marketing director: Virginia “GiGi” Benjamin, Partner and chair M. Joan McCarthy, President and owner Lori Grim ([email protected]) Marketing/Events manager: of the public law & finance group MJM Services Christian Hendricks ([email protected]) Calfee, Halter & Griswold LLP Assistant Events Manager: Jessica Snyder ([email protected]) Marketing and sales assistant : Erika Patrice Singleton ([email protected]) Anne Bitong, Executive director, Marsha Mockabee, President and chief Advertising sales manager: Nicole Mastrangelo ([email protected]) Akron Marathon Charitable Corporation executive officer, The Urban League of Senior account executive: Greater Cleveland Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsey Nordloh ([email protected]) Diane Downing, Senior vice president for Beth E. Mooney, Chairman and chief Office coordinator: corporate affairs, Huntington Bank executive officer, KeyCorp Toni Coleman ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Susan Frankel, Vice president, construction, Debbie Read, Managing partner Craig L. Mackey ([email protected]) Production assistant/video editor: Robert L. Stark Enterprises Incorporated Thompson Hine Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 Lori Franklin, Chief operating officer Mary Ann Shamis, Chief financial officer ([email protected]) OverDrive Paytime Credit: Todd Masura, 313-446-6097 ([email protected]) Audience development manager: Erin Miller ([email protected]) Marlene Herman, Owner and president, Ali Whitley, President Crain Communications Inc. AAMCO Transmission & Total Car Care Akron Area Board of Realtors Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer Awards luncheon William A. Morrow: Linda Syrek Kelly, Chief executive officer, Executive vice president/operations ABC the Tavern, XYZ the Tavern and Viaduct 8FEOFTEBZ
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Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Tracy Marek, Chief marketing officer and Outside Ohio: 1 year - $110, 2 year - $195. Single copy, senior vice president, Cleveland Cavaliers $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to custom- [email protected], or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other SUPPORTED BY: locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20120716-NEWS--3-NAT-CCI-CL_-- 7/13/2012 12:03 PM Page 1

JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Jobs coming to Medina-area auto supplier on what the company may do. ABOUT THE COMPANY SFS mum on topic, but Sharon Township meeting reflects plans According to a July 5 post on Akron.com, an expansion at SFS was More about SFS intecInc., By DAN SHINGLER said they have yet to see any project Stephen Hambley. “Nothing’s come discussed at a June 26 meeting of the which is expected to increase its [email protected] details. But several township and to the commissioners yet, but the Sharon Township board of trustees, employment level dramatically: county officials said they expect SFS, (Medina County) Economic Devel- but minutes of that meeting have yet What it makes: Cold-forged Medina County appears on the which makes cold-forged fasteners opment Corp. is working with to appear on the township’s website. fasteners and other parts for the verge of getting an employment and other parts for the automotive them, as well as Sharon Township The story said the trustees discussed automotive industry and other boost with a significant expansion industry and other customers, to and the Highland School District.” the matter, including SFS’ plans to commercial applications of one of its larger manufacturers, seek a renewal of its existing tax Bethany Dentler, executive director add 100 employees to the 73 workers Global headquarters: Switzerland the Sharon Township plant of SFS abatement and that they’re working of the Medina County Economic it employs now in Sharon Township. North American headquarters: intec Inc. to help the company expand locally. Development Corp., confirmed the One supplier of SFS, who asked to Wyomissing, Pa. SFS officials did not return three “At this point, we don’t have organization is “in the process of remain anonymous, said he was told Local plant: Sharon Township telephone calls to discuss the matter, any official communication on it,” working with (SFS),” but added that Current local employment: 73 and township and county officials said Medina County commissioner “it’s premature for me to comment” See JOBS Page 6

INSIGHT Banks’ ADA compliance at ATMs under scrutiny Institutions must provide access at machines for visually impaired; some named in lawsuits By MICHELLE PARK when audio components are used. [email protected] Dollar Bank, Huntington Bank and PNC Bank are three institu- New requirements for automated tions operating locally that have teller machine accessibility for the been named in civil rights com- blind took effect March 15, but plaints that, as of July 5, have been some Northeast Ohio banks and brought against 20 institutions by credit unions are not yet in com- the Pittsburgh law firm of Carlson pliance, while others have been Lynch Ltd. on behalf of a man who named as defendants in lawsuits is visually impaired. Dollar Bank has that allege they’ve failed to do filed a motion to dismiss, asserting what’s required with their ATMs. that Robert Jahoda’s claim that an Published in September 2010 ATM malfunctioned, leaving him and mandated as of mid-March of unable to use its voice guidance this year, new Americans with feature, is not the basis for an ADA Disabilities Act standards require claim. all of a financial institution’s ATMs, While many banks report they’ve with few exceptions, to have aux- been compliant with the new

JASON MILLER iliary aids and services, including mandates — some well before the Scott Roulston, managing director of Burdette Asset Management, in downtown Cleveland last week voice instructions, headphone ca- March 15 deadline — other insti- pabilities and privacy provisions, tutions continue to work toward such as the blacking out of screens See ATMs Page 12

PATIENT INVESTOR THE WEEK IN QUOTES Financial vet Scott Roulston looks to profit on life insurance policies “There is too much “Very few physicians By MICHELLE PARK die sooner than expected. Class B (office) space are out above the [email protected] Mr. Roulston, former CEO of in the market. That’s radar within the first rguably, the most investment research and man- what led us to apart- year. … (Dr. Carrie appealing part of the agement firm Roulston & Co., ments at Hanna Annex. Diulus is) building a pitch Scott D. Roulston which later became Fairport ... It’s better to repur- program, not just Asset Management, is now in the has been delivering pose to where the doing surgery there.” aroundA town is that his investment life settlements business. In that buyers are.” — Dr. Edward Benzel, chairman opportunity is one that isn’t tied line of business, investment funds of neurosurgery, Cleveland buy up people’s life insurance — Allen Wiant, vice president for Clinic. Page 13 to stock market zigzags or interest strategic development, Playhouse- rates. policies and pay on the premiums Square Real Estate Services. Page One The harder sell to some in- until those people die; the death vestors, at least initially, is that benefits then can be collected, they are betting on life expectancies investors hope, for a profit. FORTY UNDER 40 NOMINATIONS Burdette Asset Management, and will profit when people die, It’s time to dust off your portfolios To nominate someone via our web- and strut your stuff as Crain’s Cleveland site, go to “Features” on the toolbar and stand to profit more if people See ROULSTON Page 10 Business solicits candidates for the and click on “Forty Under 40,” where 2012 version of its annual Forty Under you’ll find the “How to Nominate” link. 40 section. Or, send background information of no HOW LIFE SETTLEMENT INVESTING WORKS In the Nov. 19 issue, Crain’s will more than a single page on your nomi- profile 40 individuals under the age of nee to editor Mark Dodosh via email at Investment funds, such as Burdette instead of maintaining them because cash to give to charity. 40 who already have made marks for [email protected] or via regular mail Asset Management of Kirtland Hills, they’re retiring and their companies no “Where it makes economic sense themselves in Northeast Ohio’s business at 700 W. St. Clair Ave., suite 310, can buy people’s life insurance and longer need key person life insurance for the seller is where they are getting and civic circles. Candidates can nomi- Cleveland 44113. pay premiums, collecting the benefits on them, said Scott Roulston, Bur- more from selling (the policy) than if nate themselves or can be nominated Please include the nominee’s date when those people die. What’s in it for dette’s managing director. Others do they just turned it in for the cash sur- by someone else. The only catch is and year of birth. Nominations must policyholders? so because their beneficiaries have render value from the life insurance that their birthdays must be on or after be received by the close of business They’re able to sell their policies passed away or because they want company itself,” Mr. Roulston said. Nov. 20, 1972. on Monday, Aug. 6. 20120716-NEWS--4-NAT-CCI-CL_-- 7/13/2012 2:33 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012 Port levy banks on suburbia

and city dwellers for a lakefront play- County residents to ANALYSIS ground. The Port Authority’s tax levy, decide fate of city- to the full port board that the agency currently a modest 0.13 mills, has ask county voters for an increase of been unchanged for 45 years. Lately focused tax increase more than 400% in the levy the it has been costing taxpayers about agency traditionally uses to maintain $3.50 for every $100,000 of real estate its docks, Matt Carroll, chief of staff By JAY MILLER value. to Cuyahoga County executive Ed [email protected] The proposed levy increase is to FitzGerald, offered the support of his 0.67 mills, raising the cost to about boss for the levy and the expanded Just how thoroughly do suburban- $20 for every $100,000 of property role of the Port Authority. ites embrace the notion that the value. The new levy would boost Mr. Carroll said the question Mr. health and vitality of the region’s revenue to the Port Authority from FitzGerald most often fields at town core city is critical to the future of about $3.25 million a year to about hall meetings around the county is Northeast Ohio? $18 million a year, or $90 million when the lakefront will be opened And perhaps more importantly, over the five-year life of the levy. up for greater public access. how willing are they to pay to maintain Filling the cracks and restore that health and vitality? Footing the bill Cuyahoga County residents may The biggest portion of the new A principal reason for expanding answer those questions in November: levy money, $43 million over five financial responsibility countywide The Cleveland-Cuyahoga County years, would be spent to stabilize for the waterways is demographic. In Port Authority intends to put a greatly sections of the Cuyahoga River 1950, Cleveland’s population was increased tax levy on the ballot. where the riverfront threatens to 2013 914,808, while the rest of the county erode the shipping channel. The plan is for the Port Authority had 475,724 people. The 2010 census THE to use a substantial majority of the The greatest threat, and most showed the city with 496,815 people, expensive repair, would occur at $90 million the levy would raise over while the suburbs were home to five years for a variety of waterfront Irishtown Bend below West 25th 883,307. infrastructure improvements along Street near the West Side Market. BOOK OF In 1950, the city, with 66% of the Lake Erie and the Cuyahoga River — There, Riverbed Road is closed county’s population, could afford to all in the city of Cleveland. because of a widening crack that is support what were regional amenities This notion of the importance threatening to send pavement into on its own. The money suburbanites of the central city to the vitality and the river. spent downtown at the city’s depart- future of Northeast Ohio has been It’s a repair the financially strapped ment stores, restaurants and theaters gathering steam for nearly a decade. city of Cleveland has been unable to turned into paychecks for city resi- It stems partially from a recognition fund for years. Stabilizing the hillside dents and taxes for the city treasury. LISTS that economies are regional, not local, and repairing the road would allow That’s no longer the case, with and it’s also an acknowledgement a hiking trail that begins in the only 31% of county residents living by suburbanites that they want the Cuyahoga Valley National Park to NE OHIO’S MOST VALUABLE in the central city. Now, most of the social, cultural and recreational find its way to the lakefront at BUSINESS DATA. paychecks go to suburbanites and amenities that are found only at the Whiskey Island, a destination sought the city gets only a portion of the tax urban core. They like the restau- by the region’s avid hikers. revenue. BOOK YOUR AD NOW. rants, nightclubs and theaters they Another big chunk of the money, It’s also a reality that the shift of find downtown and in neighbor- about $12.5 million, would cover 400,000 people from the city to the hoods such as University Circle, 25% to 35% of the cost of the dredging Reserve your space in Cleveland’s most comprehensive book of business data: county took with it people who had Tremont, Ohio City and Detroit- that keeps the shipping channel on Contact Nicole Mastrangelo: 216-771-5158 or [email protected] higher incomes and paid more prop- Shoreway. the Cuyahoga River navigable by big erty taxes than those left behind in At a meeting last Thursday, July lake freighters. The federal govern- the city. 12, when a committee recommended ment used to pay all that cost, but Can you spare a $20? Congress decreed in the mid-2000s that local communities eventually One element that will be used to would pay a portion, too. justify the added expense to voters is The legislators didn’t care who the plan to use $25 million of the levy paid the local match, and the city, The operating assets of money to build a long-sought pedes- county and Port Authority have trian bridge from the Mall overlook- struggled to find the money in their ing Lake Erie down to the museums existing budgets. Without dredging, and Cleveland Browns Stadium on the river could become too shallow the lakefront. The city, the county for freighters that carry iron ore to and the Port Authority all expect that the ArcelorMittal steel mill, threat- bridge to spur further development, ening jobs held by both city and satisfying the desire of suburbanites county residents. ■ Avon Lake, OH have been acquired by Osborne sells shares to pay down debt

Mentor business- ON THE WEB Story from consisted solely man Richard Osborne www.crainscleveland.com of the sale of Mr. apparently is closer Osborne’s shares. to paying off his lender in an Erie, Mr. Osborne’s son and business Coleman Cable, Inc. Pa., bankruptcy case, thanks to his partner, Gregory Osborne, previously successful July 12 sales of stock in told Crain’s that, assuming the over- Waukegan, IL. Gas Natural Inc. allotment sale was completed, the After previously selling 700,000 $8 million would be used to pay MelCap Partners initiated the transaction, assisted in the negotiations, and served as shares of the natural gas marketing down debt in the Erie bankruptcy exclusive financial advisor to Watteredge, Inc. company’s stock for a little more case, which involved three other than $7 million, Mr. Osborne last Osborne-owned companies. Those Thursday finished selling another companies — the John D. Oil and 100,000 shares when the company Gas Co., Oz Gas Ltd. and Great We had a very positive experience working with MelCap Partners. Their expertise and closed an over-allotment option on Plains Exploration LLC — owe knowledge was a tremendous help in the selection of a buyer that met our goals and a secondary offering of its common roughly $30 million to Charter One, “expectations. MelCap did an excellent job of keeping the process moving smoothly and stock. That offering, the first phase the Cleveland-based bank subsidiary on an agreed upon timeline. Their professionalism and ability to deliver successful results of which was completed on July 2, of RBS Citizens N.A. made MelCap the right choice for us. Mr. Joseph P. Langhenry – President, Watteredge

” Volume 33, Number 27 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, 1684 Medina Road, Suite 102 the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, Medina, Ohio 44256 OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s p 330-239-1990 / f 330-239-1991 Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877- www.melcap.co 824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20120716-NEWS--5-NAT-CCI-CL_-- 7/13/2012 12:03 PM Page 1

JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5

Levy: ON THE WEB Story from Time is short to mobilize support for issue www.CrainsCleveland.com. continued from PAGE 1 levy dollars, the potential for longer “We know what we need, and we’ve poised to support the levy. His school days, a pay structure where Barberton spokesman, Rob Nichols, said, “If teachers are rewarded for perfor- made that clear. ... The district has to do the governor lived in Cleveland, he mance, and the creation of a what it needs to do, but we hope they would vote for it, and the governor public-private watchdog panel that consider our request.” firm acquires will give the mayor whatever help would weigh in on which charter – John Zitzner, president, Friends of Breakthrough, he needs.” school operators could set up shop the fundraising arm of Breakthrough Schools, the in Mexico Mayor Jackson wouldn’t go as far in the city. charter school partner of the Cleveland Metropolitan Preferred Compounding in to say the reform package would Time is of the essence School District lose its legs without additional Barberton, a supplier of taxpayer support. However, he did Levy supporters must contend power.” Among those groups that would proprietary and custom acknowledge in an interview with with a narrow window leading up When asked whether the tight benefit from approval of a levy mixed rubber compounds, said Crain’s the levy’s fate would deter- to the Nov. 6 election in which to time frame was a disadvantage, would be Breakthrough Schools, it’s expanding south of the border mine whether “we can use those organize and make their pitch to GCP’s Mr. Roman cited the shortest the district’s chosen charter school by acquisition. tools in the most effective way so voters. Election Day already is less successful campaign in which his partner. The group plans to orga- Company executives said there is an impact.” than four months away, and the organization had been involved — nize its students’ parents in support they have purchased for an “There is no question about the period to convince many voters is the six-week effort in 1990 to pass a of the levy, said John Zitzner, pres- undisclosed price JevsaMex, the need,” the mayor said in reference even shorter given the early-voting sin tax to support the Gateway ident of Friends of Breakthrough, Mexican compounding operation to the cash-strapped district, which opportunities that begin in Octo- baseball/arena complex downtown the fundraising and advocacy arm of Iacp Jevsa of Barcelona, is staring down a $65 million ber. — as proof of his group’s ability to of the charter school network. Spain. JevasMex’s 66,000 budget deficit. “The question is, will Wendy Leatherberry, a local mobilize voters. Breakthrough receives state and square-foot plant is in the city of (voters) support paying for that political consultant who has served “I think it’s achievable because federal dollars for its operations, San Luis Potosi in central Mexico. need?” on the Cleveland Heights-University we’ve got a great team coming to though significantly less than the The plant is operating and The district unsuccessfully Heights school board and worked the table,” Mr. Roman said. “It’s not Cleveland public schools. Mr. JevsaMex’s former customers sought more levy dollars in the on levy campaigns in the past, said as if this team is suddenly going Zitzner said the group comes up in Mexico now are served by mid-2000s, but supporters argue while more time for wooing voters to wake when the school board $3,000 short to cover the total cost Preferred Compounding de the sweeping reform legislation always is preferable, the levy cam- decides to put something on the of educating each one of its stu- Mexico. signed this month by Gov. Kasich paign coinciding with a presidential ballot.” dents. While that gap is expected to “For several years we’ve heard offers a foundation unlike they’ve election could be a blessing. shrink to $2,000 per child in the from our U.S.-based customers had in the past on which to base In off election years, Ms. Leather- Details are at hand coming years as the organization that they want us to fill their their pitch. For one, they said it berry said, local campaigns need to While he wouldn’t share grows, the hope is the potential needs for high-quality custom demonstrates the district is serious spend an enormous amount of specifics, Mr. Gordon said the dis- levy dollars could help bridge that compounds in Mexico,” Pre- about righting its ship. time identifying and mobilizing trict’s board is “closing in” on the gap. ferred Compounding CEO Ken “It really is about having a plan in voters. size of the levy it plans to send to “We know what we need, and Bloom said in a statement. place that voters can depend on for “In a presidential year, to some voters and how much of it would be we’ve made that clear to Eric (Gordon) Scott Lieberman, who will different ways of getting better extent at least, you can anticipate doled out to high-performing char- and the other folks, but beyond that manage the Mexican plant, said results with their tax dollars,” said that other forces have done that ter schools partnering with the it’s not really our decision,” Mr. the acquisition “gives us an Cleveland schools CEO Eric Gordon. for you,” Ms. Leatherberry said. “I district. The district must submit its Zitzner said. “Eric’s got a big deficit operating mixing facility and a Key provisions of the legislation would anticipate that other cam- request to place a levy on the ballot himself. The district has to do what trained work force in the heart of include the ability for high-per- paigns will be willing to assist in to the Cuyahoga County Board of it needs to do, but we hope they Mexico’s industrial area.” forming charter schools to share some fashion of sharing the foot Elections no later than Aug. 8. consider our request.” ■

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012 Halle: Office vacancies remain high Jobs: Officials place high continued from PAGE 1 Increasingly, those buyers are its existing projects, as at its Staple- Cleveland apartment occupancy is apartment renters, as opposed to ton mixed-use project at the site of value on manufacturing a sky-high 96%, according to the companies that want office space. the former airport of that name in Downtown Cleveland Alliance. Mr. Wiant said he has no direct Denver. continued from PAGE 3 “They’re the largest Waiting lists are common. Young knowledge of Forest City’s plan and Last month, Forest City executives by SFS that the company’s payroll professionals who favor downtown does not doubt the market dynamics and others gathered in Parma for a could swell to 300 after the expan- company in the town- living are pursuing rental units fer- for the shift. The Halle Building also ceremonial ribbon-cutting at its sion. However, Ms. Dentler cautioned ship, and they’re good vently. would benefit from Playhouse- Hummingbird Pointe Apartments, a against pinning hopes on such a local neighbors.” Conversely, high vacancy rates Square’s amenities. However, he new name for the former Parma- high number, which she deemed dog downtown office buildings, wonders if the building would adapt town Towers, where it totally reno- – Ray Lurtz, trustee, Sharon “questionable.” Township particularly properties that do not well to apartments because of its vated the late 1960s-vintage prop- In a July 12 telephone conversa- fit in the most desired, or Class A, large floor sizes. erty. The project included a new, tion with Crain’s, Sharon Township category. Overall, downtown had a There is precedent downtown for 14,000-square-foot amenity center trustee Ray Lurtz declined to put a facility here … years ago,” Ms. 23% office vacancy rate as of last such a conversion. A former depart- with a 300-person ballroom for number on the potential increase in Dentler said. Wednesday, June 11, according to ment store that turned into an private events, indoor and outdoor employment and said trustees are In Sharon Township, SFS is a big online realty data firm CoStar. In an office building at 668 Euclid Ave. pools and a fitness center. still waiting for details. deal, even though its payroll might office market of 34 million square became the Residences at 668, where The building at 6871 Ames Road “That hasn’t been presented to us be too small to make an impact in a feet, CoStar says nearly 7 million the apartments created by K&D offers more than 200 apartments — formally,” Mr. Lurtz said, when asked larger community. square feet sits empty. have been full since a 2010 opening. including scarce three-bedroom about the expansion and related tax “They’re the largest company in CoStar reports about 210,000 Besides, Mr. Wiant said, “If any- units — in a neighborhood where abatement request. “We’re not sure the township, and they’re good local square feet is available in the one knows how to do it, it’s Forest Forest City has nearly 1,000 addi- what the deal is yet.” neighbors,” Mr. Lurtz said of the 383,000-square-foot building that City.” tional units in three other buildings. However, the township is expecting company, which is headquartered Ralph McGreevy, executive vice Forest City converted from a depart- They have the know-how a request to be made, Mr. Lurtz in Switzerland. ment store to offices in 1986. president of the Northeast Ohio said. SFS this year will reach the end SFS does not break out revenues Forest City spokesman Jeff Linton Apartment Association trade group, Where the buyers are of a 15-year township tax abate- for its business units. However, SFS said the company does not comment said the rebranding and updating at ment, Mr. Lurtz said. Assuming the had sales worldwide of about $720 Allen Wiant, vice president for on potential projects unless it is ready Hummingbird is a good sign. company makes a formal request, million in 2011 and more than 3,300 strategic development at Playhouse- to roll on them, in part because pro- “Any time Forest City spends the final decision on a new abate- employees, according to its website. Square Real Estate Services, said the jects it chooses to pursue undergo a money in Cleveland, it’s a good ment would be made by the county The Swiss company on its website foundation that operates restored thorough internal review process. thing,” Mr. McGreevy said, though board of commissioners, with input lists five salesmen for its Medina theaters and several buildings in Forest City executives talk regu- he also has not heard about a Halle from Sharon Township, he said. County operation and states that four the city’s Theater District weighed larly on conference calls about the retrofit. of them work in automotive products. concerns similar to those of the company’s apartment portfolio. Despite the substantial Parma A good, and big, neighbor The automotive sector has been Halle Building’s owner when it The developer recently opened the investment, Forest City in recent Local government officials every- one of the strongest sectors of the decided last year to shed the Hanna tallest residential building in the times primarily has disposed of where put a high value on manufac- state and national economy since Annex Building to K&D Group for a Western Hemisphere, known by assets in the Cleveland market. In turing jobs these days. That’s in part the end of the last recession. Sales of planned conversion to apartments. its address as 8 Spruce St., in Man- the last 12 months, it deeded the because they provide relatively high U.S. autos dipped to fewer than 10 Hanna Annex stretches south to hattan. It also has rehabilitated old former Chase office tower at Tower wages to workers who likely could million units a year in 2009, but they th Prospect Avenue on East 14 Street buildings to apartments — the pro- City Center and sold the Ritz-Carlton not garner them in other sectors, since have climbed, and cars were from the Hanna Building, 1501 Euclid jects range from a former tobacco Cleveland Hotel and land at Tower while also providing a spinoff effect selling at an annual rate of more Ave. warehouse, now Lucky Strike Lofts, City to affiliates of casino operator that supports other suppliers and than 14 million vehicles in June. “There is too much Class B at Tobacco Row in Richmond, Va., Rock Ohio Caesars Inc. area businesses. Many automakers posted sales (office) space in the market,” Mr. to the former U.S. Public Health Forest City lists several cities “We’re very fortunate that they gains of 20% or more last month Wiant said. “That’s what led us Service Hospital that became apart- such as New York, Washington, did choose our area for a significant compared with their June 2011 to apartments at Hanna Annex. ments at the Presidio military D.C. and Los Angeles as its target North American manufacturing sales. ■ Throughout downtown, we have to complex, now a national park. markets because they offer high rationalize the amount of office Forest City also has sold hundreds rents, population growth and high space we have. It’s better to repur- of apartments the past few years barriers to entry — pluses that COMING UP pose to where the buyers are.” and is pursuing new apartments at Cleveland lacks. ■ Women of Note reception set for July 25

There still is time to register for — being held at LaCentre in West- the 2012 Crain’s Cleveland Business lake and presented by CBiz — Women of Note awards luncheon, including how to register, visit http:// set for next Wednesday, July 25. www.crainscleveland.com/section/ Crain’s each year honors 15 WON. standout female business leaders in There, you also can find a list of Cleveland; this year’s profiles will run this year’s honorees, a short video in the newspaper next Monday, July preview of their stories, coverage of 23. past events and stories about past Accuracy. For more information on the event honorees. When you’re facing a challenge and must separate fact from fiction, there is no room for shades of grey. SS&G Parkland has STRONGSVILLE the tools and experience to identify what’s black and white. BUSINESS & TECHNOLOGY PARK

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JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 UH continues to beef up fast-growing cancer program

By TIMOTHY MAGAW Seidman Cancer Center. we provide, we’ve seen remarkable volumes, for example, were up 34% continue to invest in this program [email protected] While University Hospitals’ 120- growth in the program.” year-over-year at the Seidman Cancer because it’s important to the com- bed Seidman cancer hospital on UH’s latest cancer treatment site Center location at University munity and important to attracting University Hospitals’ cancer Euclid Avenue in Cleveland was the — and 10th in all — is a 13,100- Hospitals’ Firelands Medical Center physicians to their facilities rather program got a big boost when the largest statement of UH’s commit- square-foot space in Westlake at St. affiliate in Sandusky. than the system down the road,” health system opened its $260 million ment to its cancer program, the John Medical Center, which Uni- University Hospitals officials said Mr. Ryan, referring to the Cleve- cancer hospital last year, and UH health system continues to muscle versity Hospitals co-owns with the wouldn’t disclose where the health land Clinic. hasn’t slowed in pumping millions up its cancer treatment centers and Sisters of Charity Health System. system might set up additional Dr. Levitan said University Hos- of dollars into what it perceives as to attract top-tier physicians. UH also is in the midst of a $5.5 ambulatory sites for UH’s cancer pitals already lured several high- one of its strongest and fastest- “There is an aging population in million upgrade at its Geauga Med- program, but indicated more could profile doctors thanks to the invest- growing service lines. Northeast Ohio, and the number of ical Center in Claridon Township, be established in the future. ments in the cancer program. UH’s cancer program has seen a patients with cancer is increasing,” where it will add radiation capabil- “If we’re asked to look at other Recent hires include Dr. Lyndsay four-fold increase in the number of Dr. Levitan said. “That certainly ities to its existing oncology services. opportunities for collaboration in Harris, who has worked at Harvard, new patients over the last decade — impacts the number of patients Moreover, UH is investing $30 other geographic areas, we are open Yale and Duke universities, to head with, on average, about 8,000 new coming to us. Because of the conve- million in a new proton therapy to those discussions,” Dr. Levitan UH’s breast cancer program; Dr. cancer patients pouring into the nience factor of our locations and the center at the main cancer hospital, said. “We have extended more widely Goutham Narla from Mount Sinai system each year, according to Dr. investments we’ve made in broad- which system officials say will make in the last few years. We are certainly School of Medicine in New York as Nathan Levitan, president of UH ening and deepening the services University Hospitals one of the few open to having more discussions as a research scholar who specializes providers in the country to offer the we’re approached.” in identifying cancer-causing genes new form of radiation treatment. and developing drugs to target A draw for top talent them; Dr. Marcos de Lima from the More likely in store UH’s push further into the region MD Anderson Cancer Center in University Hospitals CEO Tom isn’t unusual, considering health Houston to lead the bone marrow Lumber: Lawsuit centered Zenty reported this spring during care in general is shifting toward transplant program; and Dr. David his annual State of the System more community-based locations, Mansur from Siteman Cancer Cen- address on the continued growth according to Bill Ryan, president ter in St. Louis to serve as medical on inaccessible inventory of the health system’s cancer pro- and CEO of the Center for Health director of the new proton center. gram, noting that discharges and new Affairs, an advocacy group for local “Top physicians in country are continued from PAGE 1 the amount Empire could borrow. patients at the new cancer hospital hospitals. certainly interested in the environ- become due,” Huntington’s filing Despite that notice, Huntington so far this year exceeded projections. “UH has always been regarded as ment and quality of care, the read. Huntington also alleged that alleged in its lawsuit, Empire sub- Also, patient volumes at many of a very good hospital for the treat- technology and tools, and certainly the defendants “have failed to detect mitted a borrowing base certificate the program’s satellite locations ment of cancer, particularly certain also interested in the sophistication a multi-million dollar fraud with in which Empire continued to claim throughout Northern Ohio also were kinds of cancer, so I think what it of their colleagues,” Dr. Levitan respect to accounts and inventory the inventory and accounts receiv- ahead of projections. First-quarter basically says is that they’re going to said. ■ pledged to (Huntington) as collateral, able as eligible for calculating its resulting in an advance to defendants ability to borrow. It also filed a draw from plaintiff exceeding defendants’ request for more than $560,000 on borrowing base by approximately $6 or about June 6, Huntington stated million.” in court papers. In an atypically fast, next- In response, Huntington said in day turnaround, Judge Richard J. its lawsuit, the bank sent Empire a McMonagle granted on June 12 the notice of over advance and a demand bank’s emergency motion for for payment. Empire has not paid appointment of a receiver. Huntington as demanded, its law- According to court records, the suit alleges. receiver — Tim L. Collins, a partner In all, Huntington claims Empire at the Cleveland law firm of Collins & owes it more than $19.4 million. Scanlon LLP — is to operate Empire until its operations are restructured Investigation in progress or stabilized, until a buyer or other Asked if Empire lied about the source of capital is secured to repay assets it possessed or lost those the company’s debt, or until its assets assets, Mr. Collins replied, “We’re are liquidated to repay its debts. investigating, and we’re not in a position to comment.” Oh, Canada An ongoing investigation by Mr. Huntington’s filing states the Collins will attempt to root out what bank and Empire agreed in August happened at Empire, what happened 2010 to a $30 million revolving credit involving the Canada company, loan. It further states that Empire on what losses Empire has incurred June 4 and June 5 of this year dis- and whether there are sources of closed to the bank that more than recovery, he said. As of last Wednes- $8 million of inventory serving as day, July 11, no criminal charges GO BEHIND CLOSED DOORS TO SEE bank collateral was being held at or have been filed related to the al- was in transit to a location owned leged fraud, Mr. Collins said. by a company in Canada called Boix A Huntington spokesman said bank CLEVELAND’S Le Roux, and that the inventory no officials would not comment. longer was accessible. Empire Wholesale Lumber was To complicate matters further, founded in 1949, according to state MOST UNIQUE HOMES the lawsuit states that Empire offi- records. According to Mr. Collins, Hidden in a skyscraper. Irish pubs. Exquisite cials also notified Huntington that a the company laid off two weeks ago receiver had been appointed by a five people who bought and sold gardens. Crain’s new video series, House Calls, court in Quebec to take control of lumber for it, leaving 23 staff mem- takes you inside the architectural and interior the assets of Boix Le Roux at the bers who perform those functions. demand of a Boix Le Roux creditor. Those layoffs were not the result of design standouts of our region that are Besides the hang-up with the any alleged fraud, Mr. Collins said. otherwise open only by private invite. inventory, Huntington said Empire Altogether, including senior man- informed the bank that $2.1 million agement and clerical staff, Empire of accounts receivable due to Empire Wholesale Lumber employs about VIEW: from Lumber Services — a company 40 people, he said. related to Boix Le Roux — was no Mr. Collins said the company also www.CrainsCleveland.com/HouseCalls longer collectible based on Empire’s recently closed its office in Portland, understanding that Lumber Services Ore., which leaves it with 10 offices. had closed indefinitely. Mr. Collins said he could not divulge In addition, the lawsuit states that the company’s assets and liabilities. Empire officials told Huntington the The company’s survival depends sole employee responsible for com- on whether there is someone who munications with Boix Le Roux and wishes to buy Empire, he said, noting Lumber Services recently committed that discussions with prospective suicide. purchasers have taken place. Mr. According to the filing, Huntington Collins said another option is for the officials on or about June 5 advised owners of the company to resolve Empire that the inventory and Empire’s issues with Huntington, accounts receivable in question no which could involve a refinancing of longer could be used in calculating its debt. ■ 20120716-NEWS--8-NAT-CCI-CL_-- 7/12/2012 4:26 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Fly right ivic leaders could have hit the panic button in spring 2010 when United Airlines and Continental Airlines announced their plans Cto merge. Instead, the Greater Cleveland Partnership laid plans to make a business case for retaining the Cleveland hub operation of the combined airline, in part by encouraging business travelers in particular to fly United. Two years later, United appears to like what it is seeing. “The hub is in a far better place than it would FROM THE PUBLISHER have been without the efforts of the team in Cleve- land,” United senior vice president/network Greg Hart told Crain’s reporter Jay Miller for a Page One Political season already is heating up story late last month. GCP deserves credit for mobilizing the troops o, how do you think our country’s camps as well as their surrogate groups. the country and telling them that the with its “United for Cleveland’s Hub” campaign, secretary of state is feeling these It’s hard to believe that the undecideds best candidate to take care of the inter- which talks up the benefits of an airline hub opera- days about her “Shame on you, are being swayed much by the vitriol in ests of the African-American community tion to the region’s economic competitiveness. But Barack Obama” quote? the ads. is him? Did he really think that there SI know, politics is a weird business But rancor is what we have come wouldn’t be enough boos and bad com- the real heroes are the businesses that are letting and candidates say whatever might be to expect from candidates and their ments to be picked up by the TV camera their employees use United even when ticket prices “moving the needle” at the time, but it’s campaign consultants. And as much as I crews? on other air carriers are cheaper. hard to believe then-Sen. Hillary Clinton think it’s getting worse, the reality is that He’s at the national meeting of an Just as United doesn’t want to operate a hub that ever could have imagined that it’s probably been ever thus; it’s organization created and maintained isn’t consistently profitable, the companies that buy the guy she was lambasting in BRIAN just that the huge amounts of for the betterment of the black citizens the tickets for their employees to fly from city to city the 2008 presidential primary TUCKER money pouring into the swing of this country, many of whom still must be conscious of their bottom lines, too. A hit to battle would end up being her states make us even more aware. support this nation’s first president of their travel accounts isn’t a blessed event. Nonethe- boss. I doubt that the South Dakota African-American descent, and he says So now, we in this swing TV markets are getting the that? less, many businesses recognize that in order to state of swing states are being same dose of this nonsense. Now, Mitt Romney is a smart guy. And enjoy for years to come the higher level of service bombarded by that television And when it’s not some I’m sure he has a bevy of very smart that a hub operation brings, they may need to suffer ad from the Mitt Romney inventive strategist digging up a people working on his campaign staff. some short-term pain to their wallets. campaign accusing President filmed quote like the above- And I’m just as certain he has hired very GCP president Joe Roman said his chamber of Obama of being untrustworthy. mentioned “shame on you” bright campaign strategists. commerce group’s anecdotal experience “would And my guess is that the ad is tidbit, it’s the candidates them- That speech was vetted. Words can be suggest we’ve got several hundred companies” that resonating with enough people and selves in a scratch-your-head moment. very powerful, and these were chosen are allowing employees to choose United over making enough of an impact that we’ll Witness last week’s appearance by Mr. carefully. But for the life of me, I just keep seeing it for a while. Romney at the national meeting of the can’t understand what they though this cheaper flying options. That’s great. Lucky us. NAACP. would do to help their candidate. It’s even better that United is noticing, and is I cannot recall a presidential election What on earth was he thinking? Was I’m trying to imagine Mr. Romney making its own push to keep customers coming to in which we saw such a barrage of TV ads he thinking? rehearsing this speech. Do you think its Cleveland hub. so early and with so much repetition. I mean, standing before a gathering of they had mock audience members there The airline is working to sign up companies in Money is being spent like water by both influential black delegates from around cheering? ■ Northeast Ohio to its RewardOne and PerksPlus programs, the corporate equivalent of frequent flyer reward programs. And of the companies United’s PERSONAL VIEW sales staff has contacted, “we’re pretty pleased with our performance,” said Evan Koppel, the airline’s regional sales manager in Cleveland. Buy lemonade, inspire an entrepreneur Contrast the positive, purposeful approach that GCP and the business community took to retaining By DEBORAH D. HOOVER Ms. Hoover is president and CEO of the bolts of launching a successful lemonade the Cleveland hub to the combative stance taken Burton D. Morgan Foundation. stand. By so doing, we hope to plant the toward United and Continental in May 2010 by U.S. t’s a familiar rule of thumb that large seeds for later business successes. Rep. Dennis Kucinich. enterprises often spring from the product development, cost of materials, After visiting stands from East Cleve- Rep. Kucinich back then essentially threatened most humble beginnings. labor availability and, of course, that all- land to Hudson to South Akron, our staff Ford Motor Co. got its start with important factor, location. Doing it well, came away renewed in our belief that the the two airlines’ plans to combine by stating that I the restless tinkering of an apprentice and counting up one’s profits, helps program is achieving everything we had the Clayton Antitrust Act “makes it very clear that if machinist named Henry Ford, who went whet the appetite for more. hoped and more. any of the parties inflicts substantial economic on to pioneer mass production. Sam All of which is why The Burton D. At one stand in the small town of harm (on a community), that can be a reason to Walton grew his giant global retailing Morgan Foundation — named for our Salem, Ohio, we watched as 7-year-old deny a merger.” As we stated in this space at the empire, Wal-Mart, from a single cramped own Northeast Ohio entrepreneurial Cordelia, barely 4 feet tall, worked her time, the congressman opted for heated rhetoric to five-and-dime emporium on the public success story, the late Mr. Morgan of stand (along with her mom) at a modest intimidate the airlines when the better route was square in a dusty little Arkansas town. Morgan Adhesives and so many other farmer’s market. The second grader left to be cool and to accentuate the positive in the In similar fashion, more than one For- successful enterprises — supported little to chance. She offered four flavors tune 500 CEO has attributed their first Lemonade Day in dozens of locations of lemonade, and her stand was brightly long-running relationship between Cleveland and crucial lessons in business to their child- across the region this year. Working with festooned with hand-drawn signs. If that Continental. hood experience of running their own many area schools and organizations, we wasn’t enough to beckon passers-by to GCP took the high road, and Cleveland stands to lemonade stands. And why not? In its helped cover the costs of an innovative stop, Cordelia made sure to make eye be better for it. own modest way, running a good national program that helps kids and contact and chat them up. lemonade stand requires thinking about their adult sponsors learn the nuts and See VIEW Page 9 20120716-NEWS--9-NAT-CCI-CL_-- 7/12/2012 4:25 PM Page 1

JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

LETTERS THE BIG ISSUE IB classes fall short; try Would you allow an energy company to drill for natural gas on your land? post-secondary instead

■ After reading the article “IB curric- the meaning of the phrase “caveat ula rigorous — and expensive” in the emptor.” June 18 edition of Crain’s Cleveland Business, as a parent of an IB graduate, John Cunniff I have a word of advice to any student Akron considering entering an IB program — don’t. Community should fund The International Baccalaureate (IB) program is often promoted as a health care for all citizens JOSEPH GAUNTNER CHRIS JUNGJOHANN CALVIN CASEY COM DUFFY step above Advanced Placement Cleveland Broadview Heights Cleveland Rocky River (AP) classes in rigor and benefit for ■I am an avid reader of Brian Tucker’s those who complete the courses. “From the Publisher” commentary, No. My lot is 130 feet by Hell no. We don’t know I wouldn’t because of all No. I’d have to know a lot The article here was no exception. and just wanted to put my two cents’ 50 feet. I’d be concerned what the repercussions the damage it could do. more about it and see Unfortunately, reality does not meet worth in regarding the July 9 column, about it being in a neigh- are. We don’t know what what the environmental the IB rhetoric. “Health care model still not healthy.” borhood where people chemicals can potentially impact would be. Also, it First, while an IB course of studies Mr. Tucker states, “It’s clear we live. spill. Or if the there is a could lower my property is difficult, that does not necessarily cannot afford the current model, leak, what would happen? value — or increase it. equate with academic rigor. which has been built upon the A great deal of the work required shoulders of employers across the ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. of IB students is little more than land.” large quantities of “busy work,” with Employers may shoulder health an academic value that is in no way care plan selection and design; proportionate to the effort required. however, the costs of the plans are Additionally, while some colleges ultimately paid for by employees. View: Spark kids’ entrepreneurial spirit and universities will offer credit for Every job I have ever applied for successful completion of IB courses, had the health and prescription plan continued from PAGE 8 next generation of wealth creation. community will think about taking many do not. along with other health options such By day’s end, she had cleared During a recent presentation in an active role in inspiring the next Most students do not choose their as dental and optical included in $150, or three times her goal. Akron, Jim Clifton, president and generation of entrepreneurs. college or university based on whether the “total compensation package.” Why do so many people patronize CEO of the Gallup organization, How? or not the institution offers credit I believe it would be reasonable to these stands? Is it always because noted that, to spark the next stage Consider volunteering for Junior for IB programs. In any case, they say that health care plans have been they’re thirsty? Career expert Pete of economic growth in America, Achievement in an eighth-grade usually do not choose a college until the result of ongoing labor negotiations Liebman, who ran a lemonade stand we’ll need about 2 million startups classroom next fall. Or perhaps late in their junior year, if not during and competition among employers of his own as a kid, attributes it to a year. The current number is only mentor the business club at a local their senior year. By then, they already who are after the best talent, and are something else — “something I call about one-fifth of that. high school. Or encourage your will have made the decision about not some form of generosity from The Lemonade Stand Principle, That’s where such programs as school district to participate in whether they will enter a high school employers. which states that older people like Lemonade Day come in. In America, Lemonade Day 2013 next spring. IB program. One aspect of the Affordable Care to help younger people who are we now have about 15 million kids in There are so many ways to help Those students who decide that Act that could be a major benefit ambitious and enthusiastic.” I think middle school and about 15 million the next generation experience the their education would be best fur- to employers and employees is he’s right about that. more in high school. As students thrill of starting and managing a thered at a school that does not give the pooling efforts of each state to But it will take much more collec- delight in their summer activities business. And, of course, the next credit for IB work would certainly provide affordable and competitive tive effort than that if this country is and look forward to the next school time you pass a lemonade stand, be have been better served in AP classes. plans. to have any hope of hatching the year, we hope that the adults in our sure to stop and buy a glass. ■ Furthermore, the open secret about These efforts should result in college credit offered for IB courses lower overall plan costs, either paid (and to a lesser extent, AP courses) for by employers or employees. This is that even in universities that do is the usual result of pooling and provide credit for these programs, cost sharing to obtain purchasing many times credit is given only for power. the very highest of scores. Health care should be viewed in While I saw no evidence of Marxist light of the model involved in funding indoctrination in the IB courses, I public schools. In that system, every- did see firsthand that inconvenient one pays or contributes regardless of facts and conclusions drawn in an IB whether they have children in the essay that are not politically popular system; the result and goal is educated with the graders in Geneva, Switzer- and productive citizens in the work land, will be punished in the grade force. given. As for who pays the bill, a wealthy While I have no doubt that person living in a $1 million home understanding other cultures is use- pays more in property taxes than, ful, if not vital, in today’s world, a say, the guy in a $100,000 home. But thorough knowledge of one’s own that is how most public programs country’s history and a recognition are; life isn’t always fair. and acceptance of its values should Wasn’t one of the founding princi- not be punished. Students should ples of our country that from many not feel a need to apologize for being we should be one? We need to Americans. restore our sense of community Those students who want both a and pride of accomplishment as a challenging course of studies and community. Something like the college credit for their efforts are far needs of the many outweigh the better served in a post-secondary needs of the one. program in which college courses Together we are strong as a nation, are actually taken and for which the a state, a county, or a city. A strong student receives both high school community pulling together for the and college credit. College credit good of all will always move forward. gained in this way is far more widely However, a community pulling itself recognized than IB or even AP credit apart will fail as a house divided for the simple reason that it isn’t just against itself. equivalent to college credit; it is college The Affordable Care Act is not credit. perfect, just like the framers of the The most telling part of the article law are not perfect. However, the was the quote from one educator political powers of this country that IB was “sort of a way to say we’re should pull together, discuss, reshape, ByBy ggoingoioingg mmoreoro e plpplaces,aca eses, mommorerer ooftenoften,ftftenen CLECL CLELE keepske keepseeps bubusiness businesssis neesss travelers,t travelers,raveveleersr , serious.” In other words, it’s a mar- and provide for the health, safety likeliikee Mark,MBill,ara kk,moving oneonen sstep tefasterep ahaahead. eae(andad.d. (okay,( well,okokayay ,blurrier) manymam nyny feetfee ethant ahead.ah eaever.ad.d AndA ndn aabove.)bob veve.)) keting tool for the product they are and welfare of all Americans, not just their own special interests. selling — their school’s diploma. www.clevelandairport.comwwww.w clc evevellana dadairpoortrt.ccomm Here’s one final piece of advice for students that will serve them well Loren Sengstock beyond the SAT exam — understand Twinsburg 20120716-NEWS--10-NAT-CCI-CL_-- 7/12/2012 3:52 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012 Roulston: Some ‘uncomfortable’ with investment strategy

continued from PAGE 3 “It is now a regulated industry. When it wasn’t regulated, I think a lot of people appro- settlements business. The greatest the Kirtland Hills investment firm is that the longer an insured person for which Mr. Roulston is managing priately were very nervous about investing in this market.” lives, the longer a purchaser such director, may be the only one in – Scott Roulston, managing director, Burdette Asset Management as Burdette is paying premiums on Cleveland dedicated exclusively to the policy it bought. life settlements. Mr. Roulston says and take the risk.’” buyers are represented by licensed when you hear of life insurance — “You have to be very good at Burdette has attracted some local closing agents called providers. trying to profit from people’s deaths,” underwriting to mitigate that risk,” endowments and foundations, as A relative of viaticals “That’s one of the reasons why said the institutional investor, who Mr. Roulston said. well as high-net-worth individuals Though he’s worked in the invest- we decided to start BAM, because it asked not to be identified. “That Other risks include an inability to and registered investment advisers, ment business since 1982, Mr. is now a regulated industry,” Mr. makes it a little (bit of an) uncom- find sellers, though Mr. Roulston mostly from Northeast Ohio. How- Roulston didn’t know life settlements Roulston said of Burdette Asset fortable type of investment to con- said there currently is an abundant ever, he would not identify his existed until Burdette founder Dett Management. “When it wasn’t sider.” supply of sellers and a limited investors, citing client agreements. Hunter approached him in 2010. regulated, I think a lot of people As for people who are insured, amount of capital investing in life Burdette opened last year and The life settlements business is appropriately were very nervous Oswald’s Mr. Judd said there are settlements. The supply of policies did an initial close of its first fund not new, but it is more regulated about investing in this market.” some “who are not necessarily should increase as the population on June 29. The anticipated size of than it ever was, said Mr. Roulston Unlike viaticals, life settlements comfortable with someone holding ages, but so should demand for the fund is $50 million when fully and others involved in the field. It involve policyholders who are not a life insurance policy on their life.” them, Mr. Roulston predicted, and funded. Documents that would emerged as an offshoot of the terminally ill but generally have a Tom Strauchon, managing director that situation could compel firms reveal how much Burdette has raised viatical settlement business that life expectancy of less than 12 years. for private client services for Akron- such as Burdette to pay more for so far were not publicly available as developed in the 1980s as a source Typically, the insured is at least 70 based Sequoia Financial Group policies, driving returns lower. of last Wednesday, July 11. of life insurance liquidity for AIDS years old and may have health LLC, said many clients feel uncom- A spokesman for The American This month, Burdette began patients and other terminally ill impairments. Medical records must fortable that investors who buy Council of Life Insurers said the buying up, one by one, life insur- policyholders. be made available to enable under- their policies will know who they trade association doesn’t have data ance policies that policyholders no That early form of the business writers to project life expectancy. are and may not have their best on whether funds investing in life longer want or need. was an ugly “circus,” according to Mr. Roulston wouldn’t disclose interests at heart. settlements are increasing and Policyholders may opt to sell Dell Judd, senior vice president of the details of how Burdette picks “The people who are buying doesn’t know of any person or their policies instead of maintaining Oswald Cos., a Cleveland-based policies because he considers it to have a disincentive to see me live to organization that tracks them. them themselves because they’re insurance brokerage. be proprietary. my full life expectancy,” or so the The spokesman said the council’s retiring and their companies no “They were really capitalizing thinking goes, Mr. Strauchon said. board adopted in 2010 a statement longer need key person life insur- and taking advantage of people in The ‘ick’ factor “If you close your eyes and think urging policymakers to ban the ance on them, Mr. Roulston said. desperate situations who had Life settlements aren’t common. about the darkest side of this … securitization, or bundling, of life Others do so because their bene- AIDS,” Mr. Judd said of the policy And for some investors and people I’d tell you, you don’t want Tony insurance settlements because it ficiaries have passed away or buyers. “The industry has become with life insurance, the premise feels Soprano to be the guy buying your believes such bundling would expose because they want cash to give to more regulated and far more civi- a bit “icky,” he acknowledged. life insurance policy — you catch senior citizens and investors to charity. lized in the last 10 years.” One person who manages a pool my drift?” increased risk of fraud. “Where it makes economic sense Mr. Judd is a state-licensed broker of institutional capital locally said Mr. Roulston said personal infor- The spokesman noted that the for the seller is where they are getting who represents people who want two or three firms, including Mr. mation and medical records are council opposes securitization of more from selling (the policy) than to sell their life insurance policies. Roulston’s, have approached the shared with life settlements buyers, life settlements, not life settlements if they just turned it in for the cash His licensure is one example of the manager’s fund in recent months but the confidentiality of the infor- per se. The concern, the spokesman surrender value from the life insur- increased regulation of the business. about investing in life settlements. mation is protected by the Health said, is that if life insurance policies ance company itself,” Mr. Roulston Life settlements brokers began to While it’s attractive to invest in Insurance Portability and Account- are securitized, promoters of such said. need such licensing just a few years something that isn’t connected to ability Act, or HIPAA. arrangements will need to find a “There’s no coercion involved,” ago. equities or economic growth, the sufficient volume of policies to he added. “It happens when some- Both sides in the life settlements institutional investor said the fund Death is sure; payoff isn’t build their inventories, creating a body has a legitimate desire to sell transaction now have advocates in has declined to invest in life settle- Though the payoff from an invest- big incentive for the writing of their policy and an investor on the place: Sellers are represented by ments. ment tied to death may seem like a insurance policies just to sell them other side says, ‘I’m willing to invest brokers such as Mr. Judd, and the “I think there’s a little reluctance sure thing, there are risks to the life in the secondary market. ■

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JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

Mary Jo Feighan Inc. GOING PLACES TAX LIENS 6300 Somerset Drive, North Olmsted The Internal Revenue Service filed tax ID: 34-1947773 JOB CHANGES Crossroads Reo Inc. liens against the following businesses Date filed: May 8, 2012 17149 S. Park Center, Strongsville in the Cuyahoga County Recorder’s Type: Employer’s withholding, CONSULTING ID: 13-4324891 Office. The IRS files a tax lien to unemployment Date filed: May 3, 2012 CENTRIC CONSULTING: Rahul protect the interests of the federal Amount: $23,798 Type: Employer’s annual Pavanan to business analyst. government. The lien is a public federal tax return P A G Enterprises LLC notice to creditors that the govern- FINANCE Amount: $32,650 10637 Glen Forest Trail, Brecksville ment has a claim against a company’s ID: 30-0057522 FIRST PLACE BANK: Louis J. Monte Polish Mitchell property. Liens reported here are Leonard and Susan Fuchs Date filed: May 15, 2012 Dunham to CEO. $5,000 and higher. Dates listed are Mizrachi School Type: Employer’s withholding, FIRSTMERIT CORP.: Jay M. CLEVELAND HEARING & SPEECH the dates the documents were filed in 26600 Shaker Blvd., Beachwood corporate income, employer’s annual Dobkowski to vice president and CENTER: David J. Abood (Accenture) the Recorder’s Office. ID: 34-1400924 federal tax return director, commercial marketing to president; Daniel T. Brezovec to Date filed: May 8, 2012 Amount: $23,205 channel management; W. Robert vice president; Steven J. Shore to LIENS FILED Type: Employer’s withholding Manning Jr. to senior vice president secretary; Mark A. Quarm to Amount: $31,855 Quality Care Residential Homes Inc. MMK Group Inc. 9402 Rosewood Ave., Cleveland and director of operations. treasurer; Grover C. Gilmore to th immediate past president. P.O. Box 445, North Olmsted S&B West 35 Investors LLC ID: 75-3189085 HUNTINGTON: Michael Monte to ID: 20-2945521 P.O. Box 181487, Cleveland Date filed: May 15, 2012 senior banker, health care. CLEVELAND METROPOLITAN BAR Date filed: May 15, 2012 ID: 26-3418940 Type: Employer’s withholding, THIRD FEDERAL SAVINGS & LOAN ASSOCIATION: Carter E. Strang Type: Employer’s withholding Date filed: May 15, 2012 unemployment ASSOCIATION: Meredith S. Weil to (Tucker Ellis LLP) to president; Amount: $62,296 Type: Partnership income Amount: $22,648 chief operating officer. Jonathan B. Leiken to president-elect; Amount: $30,810 Bruce G. Hearey to vice president. Ace Heating and Lakewood Pizza Inc. WESTFIELD BANK: Jeffrey Honaker Air Conditioning Co. Johnnys Tavern & Restaurant Inc. 16210 Detroit Ave., Lakewood to senior vice president, market leader. COMMUNITY HEALTH VENTURES INC.: Charles Billow (The Billow Co.) 45654 Broadale Road, Cleveland 3164 Fulton Road, Cleveland ID: 20-1130641 to chairman. ID: 34-1863584 ID: 34-1571273 Date filed: May 10, 2012 FINANCIAL SERVICE Date filed: May 3, 2012 Date filed: May 15, 2012 Type: Employer’s withholding, BROCKMAN, COATS, GEDELIAN & HOSPICE CARE OHIO: Rev. Sandy Type: Employer’s withholding Type: Employer’s withholding unemployment CO.: Kristian Doty to tax associate. Selby (Furnace Mission) to chair. Amount: $36,213 Amount: $30,062 Amount: $22,488 KBS CAPITAL MARKETS GROUP: NATIONAL ASSOCIATION FOR Ohio Natural Stone LLC Friar Enterprises Inc. Rybak & Associates Inc. Luke A. Bobey to regional vice SPORT AND PHYSICAL EDUCATION: 760 W. Bagley Road, Berea 3435 Brookpark Road, Parma 21821 Libby Road, Suite 102, Bedford president, Ohio River region. Stephen Mitchell (Kent State Univer- sity) to president-elect. ID: 30-0260193 ID: 34-1242259 ID: 03-0514289 WELLS FARGO ADVISORS: Scott Date filed: May 3, 2012 Date filed: May 3, 2012 Date filed: May 15, 2012 Polish to branch manager, Mentor. PARTNERS PHYSICIAN GROUP: Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Michael Gallucci (The Cornerstone Amount: $33,133 Amount: $28,345 Amount: $22,475 NONPROFIT Co.) to chairman; Elliot B. Davidson MALTZ MUSEUM OF JEWISH to vice chairman. HERITAGE: Lynda A. Bender to ST. AUGUSTINE HEALTH MIN- executive director. ISTRIES: Karen McCarthy (Meaden & Moore Ltd.) to chair; Edward Hack TECHNOLOGY to vice chair; Linda Sheehan to sec- NET ACTIVITY INC.: Sonny Kumar retary; Charles Slone to treasurer. to business consultant. ST. AUGUSTINE SERVICES CORP.: PARAGON CONSULTING: Carmen Naso to chair; F. Barry Shashanka Nalanagula to developer. Keefe to vice chair; Nancy Bouhall to secretary; J. Thomas Hannon to BOARDS treasurer. AKRON GENERAL FOUNDATION: AWARDS Mark Mosley (Huntington Wealth Advisors) to chairman; Richard ROSE-MARY CENTER: Steven M. Harris to vice chairman. Rini (Bank of America/Merrill Lynch Wealth Management) received the AKRON GENERAL HEALTH SYSTEM: 2012 Angel Award. Mark Lerner (GoJo Industries) to chair- man; William Babcox to vice chairman. RETIREMENT AKRON GENERAL HOSPITALS: William Frantz (Sandridge Food THIRD FEDERAL SAVINGS & LOAN Corp.) to chairman; Theresa Carter ASSOCIATION: John P. Ringenbach, to vice chairman. chief operating officer, after 20 years AKRON GENERAL PARTNERS: of service. Anthony Tricomi (PFI Displays Inc.) to chairman; J. Bret Treier to vice Send information for Going Places to chairman. [email protected].

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012 Area marketers pitch assists to sports teams, organizations

By JOEL HAMMOND small businesses. We have experts platform offers them a much revenue; the NBA Players Association; ton Building, 812 Huron Road, where [email protected] in digital marketing, and by having greater vision of who the customer an expanded relationship with News Home Team has an office. Mr. Ryz- those resources, can go in and is and what they want.” Corp. to include its Fox networks; nar plans to add up to five employ- Pro sports teams may have some apply all the best practices.” and IMG College, an arm of global ees once the move is complete to of the most recognizable brands in Fathom already has signed on Some sizzle at Phizzle marketing giant IMG that special- handle sales and creative duties. the world, but often their staffs more the Columbus Crew of Major League Meanwhile, the Cleveland office izes in college media rights and other How does he pitch potential clients? closely resemble those of small or Soccer and the NFL’s New York of San Francisco-based Phizzle is facets of college sports marketing. “I had a vendor ask me, ‘Why do I midsize businesses. Giants. For those clients, Mr. Kessen starting to see the fruits of its labor “We’re able to leverage digital assets need to use you? I have Twitter, I So, while they employ ticket sales and Fathom offer, among other since it was established last Novem- with teams’ in-house marketing,” use Facebook,” he said. “I say, ‘You and marketing staffs, they may not things, tips on search engine opti- ber by three former Cavaliers exec- said Mr. Ryznar, Phizzle’s vice pres- also can balance your checkbook, be able to fully handle in-house the mization — the practice of enhancing utives. Phizzle specializes in providing ident of marketing. but you also have an accounting growing number of ways to analyze one’s results on search engines sports teams and organizations with Phizzle has moved into the Cax- team.” ■ their sales practices and look for such as Google or Microsoft’s Bing mobile marketing services — text new revenue possibilities. — and re-target marketing. An messages and content delivered on That’s where some Northeast example of the latter is when a fan smart phones or tablet computers Ohio marketing agencies are making looks for Giants-Jets tickets on — inside and outside of arenas. inroads. Giants.com or StubHub and, upon Jeff Ryznar, formerly the Cava- ATMs: Compliance adds cost Fathom Online Marketing, the leaving those sites, sees an ad on, liers’ director of strategic marketing, second-largest marketing firm in say, Yahoo for Giants-Jets tickets. said the company’s legwork now is continued from PAGE 3 “While the new ADA requirements Northeast Ohio according to Crain’s In addition, Fathom tracks paying dividends: Given its start last compliance, though not all would will better serve a certain segment research published last year, in customers’ clicks through emails it fall, Mr. Ryznar said few teams were say so on the record. of our population, I question the January hired former Cleveland sends on behalf of its clients. When looking for new providers or new At Cortland Savings and Banking overall impact on consumers,” Mr. Cavaliers analytics and relationship that same Giants fan receives an technologies, with three of the big Co., which operates in five Ohio Martin said. marketing executive Steve Kessen email from the team with a ticket four sports leagues in season; teams counties, including Geauga and So does Weltman Weinberg’s Mr. to head its sports marketing prac- offer, Fathom analyzes clicking typically adopt any new business Portage, seven ATMs have been Rutkowski, who knows of at least tice. Mr. Kessen joined Fathom from habits and what ultimately was the methods during the offseason. made compliant, but the bank awaits one other institution in Toledo TeamWork Online, a recruiting ser- cause of losing a potential sale after Now, though, in addition to the new, compliant machines for three that’s pulling its automated teller vice for professionals in the sports an email recipient leaves the site. Cavaliers and other teams that use branches, which should arrive within machine. business. “We’re helping teams make more Phizzle’s services, Mr. Ryznar said the next 30 days, said Jim Gasior, “The overall irony is what bugs “Usually, there’s one person data-driven decisions,” Mr. Kessen the company has partnered with president and CEO. me,” he said. “This is a statute that’s doing (marketing analytics) for an said. “Our purpose is to drive sales, Cleveland-based Home Team Mar- “It’s not an easy change to make,” supposed to increase access, and it’s organization trying to reach $50 and the way teams traditionally keting, which pairs 10,000 high Mr. Gasior said, adding it’s also having the opposite effect. If there million or $100 million in revenues,” have done that is with an army of schools nationwide with big adver- one that increases costs without are fewer machines today prior to said Mr. Kessen, 29. “Teams are inside sales people. Our analytics tisers, giving those schools added increasing revenues. this going into effect, then I would “There are so many areas of consider that to be an epic failure.” regulation, not to make an excuse,” Happy camper Mr. Gasior said. “I don’t have enough resources to allocate to the normal One party that isn’t lamenting the day-to-day stuff, let alone the change is Green-based Diebold compliance requirements (and) the Inc., one of the world’s largest ATM examinations.” makers. Diebold saw its first-quar- Robert Rutkowski, an attorney ter results benefit from accelerated who advises credit unions, has had ATM installations related to the ADA some clients ask him: Do we really requirement deadline, a spokes- have to comply with this? woman said. It’s anticipated some “We tell them, ‘Yeah, it’s serious ADA-related activity will continue as a heart attack and you should through the middle of the year. have already been in compliance,’” Executives with Diebold would not said Mr. Rutkowski, managing part- specify how much sales increased ner of the credit union department or whether it’s true that there’s a of Weltman, Weinberg & Reis Co. backlog of ATM orders. (Bankers LPA in Brooklyn Heights. “But that say there is.) Banks owned nearly costs money, and my clients — 125,000 Diebold ATMs in North nonprofit cooperatives — don’t America as of last December. always have the funds.” In some cases, ATMs have needed software changes to provide the Pay up, or pull out YOUR BUSINESS visually impaired with voice guidance; Addressing the new ADA regula- in other cases, hardware upgrades IS MOVING FAST. tions isn’t cheap. were necessary, said Dean D. Stewart, Firefighters Community Credit Diebold’s senior director of self-ser- CAN YOUR PHONE AND Union spent more than $67,000 to vice product management. upgrade two of its four ATMs and The law is the law INTERNET KEEP UP? to replace the other two months before it was required, said Ben Asked whether he’s concerned Laurendeau, president and CEO. that Cortland could become the next And even though it bought used target of the growing string of civil machines to keep its costs down, rights lawsuits, Mr. Gasior replied, Get award-recognized service and 24/7 support with feature-rich Cox Business InternetSM and Cox Business Unity Catholic Federal Credit “I would be concerned if we were Union still spent more than $50,000 doing nothing. (But) we’ve ordered VoiceManagerSM to keep your business running smoothly. We’re the only service that’s at your service. on two ATMs and their installation the machines, we’ve started the in November, according to Tamlyn installation process. Our position Straight-Schervish, president and would be, ‘Hey, look, we’re working Limited-Time SPECIAL COX BUSINESS BUNDLE CEO of the credit union in Parma. on this. By the end of this year, we OFFER Cortland expects to spend a total will have every machine converted of $102,000 to bring its ATM to meet the requirements.’” network into compliance. Mr. Gasior While they may not say it on the is among those who predict such record, it’s clear many bank and ADD BUSINESS INTERNET AND PHONE FOR added expenses will spur institu- credit union leaders feel Carlson ONLY $69.99 PER MONTH, PLUS FREE tions to charge more ATM fees, Lynch, the law firm that’s suing though he said none are planned at institutions for noncompliance, is INSTALLATION.* present at Cortland. on a witch hunt. Emerald Group Credit Union in But Bruce Carlson, a founding Garfield Heights is taking a more partner of the firm, countered that “Highest Customer Satisfaction among Data Service extreme step. It plans to remove this bankers have not been blindsided Providers for Small/Midsize Businesses” week its ATMs from two local high by these requirements. Dialogue schools because “we cannot afford about coming requirements had 1.866.791.2688 | coxbusiness.com/save to invest thousands of dollars into been taking place for years, and they had a yearlong grace period to *Offer valid until 9/30/2012 to new commercial subscribers of Cox Business InternetSM and Cox Business VoiceManagerSM in Cox Ohio serviceable locations. Minimum 2-year service contract required. Offer includes monthly service fees for 24 months of Cox Business new equipment that is installed Internet with download/upload speeds of up to 10.0Mbps/2.0Mbps and 1 Voice Manager Anywhere Line. Phone offer may be extended on up to 7 additional VoiceManager Anywhere lines. Offer includes Free Standard Installation. Offer does not include non-standard and maintained in low volume loca- get up to speed, he said. installation, construction, inside wiring, usage, equipment, applicable taxes, surcharges or fees. Telephone modem equipment is required. Modem uses electrical power to operate and has backup battery power provided by Cox if electricity is interrupted. Telephone service, including access to e911 service, will not be available during an extended power outage or if modem is moved or inoperable. Telephone services are provided by Cox Ohio Telcom, LLC. Cox cannot guarantee uninterrupted or error-free Internet service or the tions,” said John R. Martin, presi- “Compliance means compli- speed of your service. Actual speeds vary. Rates and bandwidth options vary and are subject to change. Discounts are not valid in combination with or in addition to other promotions and cannot be applied to any other Cox account. Services not available in all areas. Other restrictions apply. ©2012 CoxCom, LLC., d/b/a Cox Communications Ohio. All rights reserved. dent and CEO. ance,” he said. “This is an issue that Cox Business received the highest numerical score among small/midsize business data service providers in the proprietary J.D. Power and Associates 2012 Major Provider Business Telecommunications Data Services Study.SM Study based on 5,143 total responses measuring eight providers and measures opinions of small/midsize businesses (companies with two to 499 employees). Proprietary study results are based on experiences and perceptions of businesses surveyed in October 2011 and February 2012. Your experi- The credit union operated the is a very high-priority issue for the encesmay vary. Visit jdpower.com. ATMs there for three years, serving blind community and has been for students and staff. a very long time.” ■ 20120716-NEWS--13-NAT-CCI-CL_-- 7/12/2012 3:41 PM Page 1

ortheast Ohio is a health care themselves as future leaders in their mecca, so it’s a daunting task fields, or who may be more established to pick just a handful of pro- but in new and transformative roles. fessionals to watch. We also ask others working within NIn this section, we offer a cross section health care to weigh in on the many of just some those who are positioning challenges facing the sector in the future.

WHO IN TOWATCH HEALTH CARE

DR. JENNIFER BAILIT and has served the state de- weeks in nonmedical situa- partment of health on tions, an effort that reduced WHAT THE HEALTH CARE Interim director, women and perinatal quality mea- those births by 60%. COMMUNITY IS SAYING children’s patient care unit; sures. In 2011, she joined Now, the OPQC is with U.S. Sen. Sherrod extending that program perinatal executive director moving from a model of “sick care” Brown in an effort to into the other 80 hospitals BILL RYAN MetroHealth Medical Center for illnesses to a model of care for protest drug maker KV statewide that deliver acute and chronic illnesses, as well r. Jennifer Bailit, a Pharmaceutical’s decision babies, in addition to President and as health promotion and wellness. maternal-fetal medicine to raise the price of Makena working to increase the CEO Health care leaders of tomorrow specialist, has made it — a drug designed to prevent pre- usage of antenatal steroids, accord- The Center for need to augment and refocus their her career’s work to mature birth in women who have ing to Dr. Michele Walsh, director Health Affairs current modes of leadership to be Ddecrease the rate of preterm births had at least one previous preterm of neonatology at University Hospi- ahead of this shift. Tomorrow’s in Ohio and nationwide. birth — to $1,500 per injection. tals who also works on the OPQC. What types of health care leaders will concen- The Connecticut native earned Their effort included lobbying Antenatal steroids, given to attributes will trate our beacons of leadership a bachelor’s degree in political the Federal Trade Commission to women who will deliver before 32 be needed in tomorrow’s health toward transformational leader- science at Brown University, but open an antitrust investigation, and weeks, helps prevent strokes in care leaders? ship. In leading through transfor- said that while assessing what she KV eventually lowered the price. preterm babies and matures their From the perspective of running mational leadership, the attributes wanted to become, she knew she Previously, Dr. Bailit and Metro- lungs in order to decrease those a hospital, the biggest skill needed that we will need are: the ability to was interested in social and justice Health played roles in the National children’s time on ventilators. in tomorrow’s leaders is the ability define the vision during this time issues. Institutes of Health’s study of Dr. Walsh said Dr. Bailit pos- to create relationships with the of shift; capability to set the direc- “I had to decide whether I wanted Makena, writing the article that sesses the knowledge and savvy of physicians that serve that hospital. tion; skills to serve as agents of to work on those issues as an aca- summarized the trial, which obstetrics and the public policy Building that relationship (and) change; creativity to respond demic or go out in the real world showed that Makena was effective perspective, as evidenced by her continuing to go out and find innovatively to implementation and address them,” Dr. Bailit said. in preventing preterm birth. work with Sen. Brown, to succeed physicians for your particular tactics and issues; and the willing- She opted for the latter, though And in 2008, according to Metro, in her advocacy role. hospital is going to be key. Hospi- ness to be accountable to a multi- she puts her poli sci degree to work. she led an initiative at 20 top Ohio “She has been a remarkable tals will have to be responsible for tude of diverse constituents, Dr. Bailit is a member of the hospitals that encouraged doctors change agent,” Dr. Walsh said. care that happens outside their including embracing new models Ohio Perinatal Quality Collaborative to stop inducing birth before 39 — Joel Hammond own four walls. As we go into this and methods for communication. accountable-care approach and We as leaders will continue our pay-for-performance models, passion for patient care, while we hospital executives will have to broaden this passion to include thopedic work more inter- figure out a way to integrate into the DR. CARRIE DIULUS MARY DOLANSKY health promotion and wellness. action with patients. primary care systems in the com- What are some of the most Finally, after completing munity and make those doctors Spine surgeon Director, Robert Wood Johnson significant challenges going a six-year orthopedic feel like part of the team as well. Medina Hospital, Foundation’s Quality and Safety forward? residency at the Cleveland What are some of the most Cleveland Clinic Education for Nurses program; The most significant challenge Clinic and three years in significant challenges going associate professor as we move forward is the need he’s a rookie, but fellowship at the San Fran- forward? Case Western Reserve University for a cultural change resulting in Dr. Carrie Diulus is cisco Spine Institute, Dr. I think the biggest challenge is innovative models for wellness and building a spinal Diulus began practicing at ike most people in the shifting from a health care system health care delivery. Our current practice at the Cleveland the Cleveland Clinic in July 2011. nursing profession, Mary that primarily fixes you when health care delivery has been SClinic’s Medina Hospital that’s What she has done since is help Dolansky is in it because she you’re sick to one that puts more described as a “sick care system.” commanding even the veterans’ to build the new Orthopaedic and wants to help people. emphasis on keeping you well. Our current delivery is responsive attention. Spine Center at Medina Hospital. LThe daughter of a nurse and the That’s a very different approach to and excellent in caring for individ- “Very few physicians are out “We have been working hard to sister of another, Dr. Dolansky — health care than what we’ve had in uals who are ill, those seeking care above the radar within the first develop a multidisciplinary spine she has a Ph.D. in nursing — wants this country for the last 100-some for primarily acute medical issues. year,” said Dr. Edward Benzel, center here,” she said, citing how to help other years. It’s a whole different approach Recognizing now that health care chairman of neurosurgery for the the center brings together sur- nurses, as well as that challenges the basic financial must be a system, synergistic and Cleveland Clinic, who has prac- geons like her and those in their patients models and care delivery models innovative health systems and ticed for more than 30 years and is neurology, physical therapy, pain and the entire that exist today. From a fundamental initiatives for care and wellness need a mentor for Dr. Diulus, a spine management and nutrition coun- profession, by perspective, that’s the biggest to be created and implemented to surgeon. “She’s building a pro- seling. “That’s been a focus of the making nursing challenge. rethink and retool health care gram, not just doing surgery there. program here — looking at patients better. delivery. We have made some “It is a male-dominated field, not just from a surgical standpoint.” That is why JANINE significant progress, as we begin to both orthopedics and neuro- The program serves two primary she doesn’t create and implement for this move surgery. However, that’s changing,” patient populations: older people spend much JANOSKY from acute care or “sick care” and Dr. Benzel said. “It’s people like with degenerative neck and back time with patients these days, but toward maintaining ongoing Carrie who are helping to effect conditions, and younger people oodles of it with other nurses in her Vice president patient health. These primarily that change.” with sports-related injuries. role as director of the Robert Wood and head of the include growing and strengthening While Dr. Diulus, 38, knew early Dr. Diulus has proven to be “a Johnson Foundation’s Quality Center for our acute care delivery while on that she wanted to be a doctor — great glue to bring together and and Safety Education for Nurses Community expanding access to care and she got her first microscope when hold together team members,” program at Case Western Reserve Health services, developing patient educa- she was 5 and worked as a medical Dr. Benzel said. University, where she also is an Improvement tion and self-management for assistant through her college years “Even though she’s a relative associate professor. Austen BioInnovation chronic disease, incorporating — she didn’t always aspire to prac- rookie, she’s rapidly developing a To do the work she’s doing today, Institute in Akron interprofessional health teams, tice this type of medicine. strong reputation for being a physi- Dr. Dolansky gave up a 15-year What types of attributes will be and empowerment initiatives to Indeed, she only changed to cian who cares, who does the right career in direct patient care in 1999. needed in tomorrow’s health care facilitate health promotion and orthopedic surgery after a 2001 thing,” Dr. Benzel said. “You can feel “I believe that’s what I need to leaders? wellness, as well as new financial knee injury derailed her running the love for Carrie. It’s palpable. be in to lead the change,” she said, Health care in the United States models and organizational restruc- and cycling career. Even after Employees have enough confidence referring to her crusade to improve is on the cusp of a significant shift, turing. investing three years in a pathology in her as a young physician to have the profession. “It’s hard to lead residency, Dr. Diulus made the de- their spouses see her. Feedback change from the front line.” cision to switch, in part, because regarding patient satisfaction is very Today, she is the person many she knew she would enjoy in or- high. — Michelle Park See DOLANSKY Page 16 INSIDE: Answers from other Northeast Ohio health care leaders. Page 16 20120716-NEWS--14-NAT-CCI-CL_-- 7/12/2012 3:43 PM Page 1

WHO IN 14 CRAIN’S CLEVELAND BUSINESS TO WATCH HEALTH CARE JULY 16 - 22, 2012

DR. JORGE GARCIA- tor performing Mohs mi- ceive an appointment with- AL HAWKINS to other biomedical com- crographic surgery, a spe- in 72 hours. The goal is to panies in Northeast Ohio. ZUAZAGA cialized surgery for skin detect skin cancer early and CEO When BioEnterprise cancer patients, full time. potentially save lives. Milo Biotechnology LLC recruited him to move Founder “People would have to Dr. Garcia-Zuazaga also Part-time CEO-in- back home from Boston, Apex Dermatology wait two to three months. speaks at senior centers, Residence they told him that his and Skin Surgery Center When you have skin can- offers free skin cancer BioEnterprise Corp. main job would be to find cer, you want to get this screenings and participates a technology, turn it into a r. Jorge Garcia-Zuazaga’s taken care of,” he said. “I in national presentations. l Hawkins is fol- company and leave the flight into the Cleveland tried to bridge the gap.” Dr. Kevin Cooper, professor and lowing a fairly simple Cleveland-based nonprofit to focus medical scene is not a At the time, Dr. Garcia-Zuazaga chairman of the department of career path. on building the business, which typical one. had just earned his MBA from Case dermatology at University Hospitals After his job is done at he’ll eventually do if Milo Biotech- DBorn in Puerto Rico and raised Western Reserve University and was Case Medical Center and Case MiloA Biotechnology LLC, he’ll start nology can raise venture capital. in Venezuela, Dr. Garcia-Zuazaga willing to risk of self employment. Western Reserve University, liked another company. Then another Mr. Hawkins was amazed that first served as a flight surgeon for “My parents, growing up in Dr. Garcia-Zuazaga enough that he and another. someone would pay him to hunt for the U.S. Marines before transitioning Puerto Rico, had businesses. hired him twice — first as a resident “I don’t want to be doing any- a company to start. He also liked the to the institutional side of medicine. Maybe it’s in my genes,” he said. and later as a faculty member. thing else,” he said “I like creating idea of being able to help the region After serving as director of Mohs Apex Dermatology and Skin “I think he has leadership capacity new companies.” he came from rebuild its economy. surgery at University Hospitals’ Surgery Center in Concord now and he’s very engaging and charis- Today, Mr. Hawkins is both CEO “That’s a long-term goal,” he Westlake Health Center for three employs five people. matic and smart and capable,” at Milo Biotechnology, a startup said. “I will be here until I die.” years, last year he moved his derma- At Apex, he started the Spot said Dr. Cooper. “He could be a testing a treatment for muscular A native of Columbia Station, tology practice —and his family — Check program, which ensures any- significant leader and mentor; dystrophy, and a part-time CEO- Mr. Hawkins graduated from Lake to Concord because he saw a need. one with a new mole or a skin spot there’s nothing holding him back.” in-Residence at BioEnterprise Ridge Academy in nearby North Lake County did not have a doc- that’s changing or bleeding will re- — Ginger Christ Corp., where he provides assistance Ridgeville before earning a bachelor’s

JOE GIUFFRIDA Not only did he play an division, the precursor to Great KYLE GUSTAFSON “People come in with a bunch of instrumental role in Lakes NeuroTechnologies. medications and somebody has to President forming the company, The spinoff employs 20 people Assistant professor of pharmacy accurately assess whether what Great Lakes which in 2010 spun off and brought in about $8 million in practice they are taking is right or wrong” NeuroTechnologies Inc. from Cleveland Medical grant funding over the last 12 Northeast Ohio Medical University and then follow their hospital stay Devices Inc., but he also months, Dr. Giuffrida said. He College of Pharmacy and the administration of new t was during a senior helped develop the prod- would not give revenue figures for Clinical pharmacist medications and their impact on design class at Case ucts, said Bob Schmidt, the company but said sales are Southwest General Hospital the hospital visit, Dr. Gustafson Western Reserve who is chairman and divided about evenly between the said. “Then we have to make sure University that Dr. Joe Giuffrida majority owner of both companies. company’s two main product lines. yle Gustafson, an assistant they leave (the hospital) with the Irealized he was studying the right Mr. Schmidt described Dr. Giuffrida The Kinesia-brand movement disor- right medications.” professor of pharmacy subject. as “a guy who makes things happen.” der monitoring system is designed practice at the Northeast Dr. Gustafson said Southwest’s There, he saw a patient who had While studying at CWRU — to provide a better way for doctors to Ohio Medical University medical reconciliation program lost all use of his limbs open and where he earned a bachelor’s, estimate how much medication a KCollege of Pharmacy and a clinical uses pharmacists rather than the close one of his hands. He just master’s and doctorate in biomed- patient needs and for drug compa- pharmacist at Southwest General nurses, who traditionally would needed the help of a few electrodes, ical engineering — Dr. Giuffrida nies to measure how well their prod- Hospital, wants to make sure his gather this information, because which were rigged to stimulate his conducted research related to ucts work. The BioRadio is used by patients get the best care possible. pharmacists are better able to hand muscles when he moved his functional electrical stimulation researchers and educators to moni- And a key way focus on potential medical interac- shoulder. and even worked with the patient tor bodily signals such as brain, he helps them tion problems. “Once I saw that, I was completely he saw as an undergraduate. He heart and muscle activity. avoid medica- In addition to reducing errors, hooked on biomedical engineering,” also worked as an engineer for The Hinckley resident enjoys tion-related he said, medication reconciliation he said. home medical products maker making wine, riding his 2006 problems while also can save the hospital money Today, Dr. Giuffrida is president Invacare Corp. of Elyria and Cleve- Honda Shadow, playing golf and they’re in the by avoiding patient complications. of Great Lakes NeuroTechnologies land Medical Devices, where he rooting for Cleveland sports teams. hospital is his “That entire process is very Inc., which develops devices designed eventually became vice president “I’m determined to never leave work to improve difficult,” Dr. Gustafson said. “It is to monitor the symptoms of motion and general manager of the com- until one of my sports teams win,” the way their very difficult for every hospital in disorders and various bodily signals. pany’s movement disorders he said. — Chuck Soder prescriptions are the country, and nobody has monitored. figured out how to do it right.” To that end, Dr. Gustafson is He’s trying to do it right. developing a program of medication He also is working on putting a reconciliation for patients at pharmacist in the emergency room Southwest. The program is designed to be an information resource for to minimize the risk that newly the doctors and nurses there. admitted patients will have problems David Ferris, Southwest’s with prescription interactions. pharmacy clinical manager, said The U.S. government’s Agency Dr. Gustafson “even goes the extra for Healthcare Research and step and calls up (patients’) local Quality describes reconciliation as pharmacist or their primary care Be Well Solutions Congratulates: the process of reviewing a patient’s physician or family members to try complete medication regimen at to determine what drugs the the time of admission and com- patient is taking.” paring, tracking and reviewing any Dr. Ferris also noted that Dr. Automated Packaging Systems new medications that may be Gustafson greatly has improved prescribed in the hospital or upon the quality and choice of antibiotics discharge. The agency believes half used to fight infectious diseases in of hospital admissions have one or patients and spends time in the Clark-Reliance more medication conflicts at the hospital’s intensive care unit to time of admission. monitor medications. — Jay Miller Hyland Software Reminger Attorneys at Law Does your business or medical practice need up to Tucker Ellis

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WHO IN JULY 16 - 22, 2012 TO WATCH HEALTH CARE CRAIN’S CLEVELAND BUSINESS 15

degree in economics from Emory new ventures at Boston University, TIQUE OEFLEIN as a registered nurse in a immediately. She had an University in Atlanta in 1996. where he helped faculty start neonatal intensive care unit ability to communicate Although he spent some time companies and managed the uni- Nurse practitioner; team leader, before earning in 2010 her with people at all levels, working for an insurance company, versity’s business incubator and palliative care unit master’s degree from from patients to physicians. he never was keen on joining a venture capital fund. Hospice of the Western Reserve Ursuline College. Ms. Bartel said since Mrs. major corporation. That attitude Mr. Hawkins is an intelligent, “I always was craving Oeflein was promoted to was reinforced by a professor he creative and thorough person, said ique Oeflein, a nurse someone to help me with team leader six months had while studying for his MBA at the Bill Leimkuehler, chief operating practitioner at Hospice of the little symptoms that ago, she has gotten in- University of Wisconsin-Madison. officer of medical device maker the Western Reserve, came up,” Mrs. Oeflein volved in national projects “He made it seem like it was OK Biolectrics LLC of Elyria. He noted knows firsthand how said. “Learning about palliative and even is reviewing chapters in a to not want to work for a big com- how Mr. Hawkins looked at all Timportant palliative care is for care was exactly that person to me.” book on core curriculum for ad- pany,” he said. sorts of technologies before settling patients with life-limiting illnesses. Now, only two years into her vanced practice and hospice nurses. There, he helped write business on Milo Biotechnology’s muscular The mother of an autistic child, time with Hospice, Mrs. Oeflein is “I can only imagine in a year’s plans for professors trying to turn dystrophy therapy. Mrs. Oeflein always wanted to have the team leader of the organization’s time where she’ll be in palliative ideas into products, which led him “He’ll analyze a problem many someone to turn to with questions palliative care unit — Western care,” Ms. Bartel said. and a partner to found Agave Group times over and find an optimal about symptoms or for advocacy, Reserve Navigator, which incorpo- Mrs. Oeflein isn’t short on ideas New Venture Consulting, which fo- solution before acting,” he said. physician referrals and guidance. rates social work into palliative for the future. She said she would cused on startups and investors. He lives in Cleveland Heights with As a nurse practitioner in care. She oversees 10 advanced like to establish a partnership They also founded TFX Bioscience, his wife, Jill, and their 4-year-old Hospice’s palliative care unit, Mrs. practice nurses and is in charge of between Hospice and local inpa- but the startup’s technology — son, Leo. He enjoys hiking in the Oeflein now is that person. She the medical side of the program. tient palliative care services. which was meant to fight bioterror ravine that separates the suburb works to augment the care provided Judy Bartel, chief clinical officer at “It’s a nice communication be- pathogens and protect plants from from Shaker Heights and playing by primary physicians, helping man- Hospice and the person who hired tween the hospital stay and the disease — didn’t work as expected. pingpong in his basement. age patients’ symptoms and pain. Mrs. Oeflein, said Mrs. Oeflein’s home environment. It’s good health In 2007, he became director of — Chuck Soder Mrs. Oeflein for 10 years worked leadership abilities were apparent care,” she said. — Ginger Christ

DAMIAN A. HENRI Associate; design leader, Simulation Based Learning Environment Architecture Bostwick Design Partnership

arents and teachers at Solon High School thought that Damian Henri would pursue WHEREVER YOU ARE, a career in theater or music, Pparticularly since he started working summers at the former Sea World of Ohio in sound and lighting. However, he puts those talents to work today on YOU’RE CLOSE TO GREAT CARE. a far different stage. He is involved in the rapidly evolving niche of designing simu- lation centers for health education, which provide hospital and surgical environments for high-tech mannequins that are increasingly popular in training next generations of health care practitioners. A recent assignment involved Mr. Henri in the multimillion-dollar surgical simulation center at the Cleveland Clinic’s Cole Eye Institute. Other recent projects include nursing skills labs at Cuyahoga Community College’s East and Metro campuses and for the Ohio State University College of Medicine. He also will present a poster on simulation-based learning environ- ments at the International Confer- ence and Idea Marketplace for the Society for College and University Planning, and he will be a speaker at the annual International Nursing Simulation/Learning Resource Center Conference. He has spoken at six other conferences since 2010. Work combining the technical requirements of doctors and uni- versity researchers particularly suits The nationally recognized care and expertise of Mr. Henri. While studying architec- ture at Carnegie Mellon University, The MetroHealth System is available at 17 convenient locations, he also earned a minor in physics. That exposure gives him insight from Beachwood to Westlake and from Cleveland to Strongsville. into what colleges and medical So you never have to go a long way to make a great comeback. schools seek in their lab buildings or simulation centers. Robert Bostwick, president and For a physician near you, please call 216-778-7878 design director at the firm, said Mr. Henri’s science experience helps him grasp issues his clients are working or visit metrohealth.org. on and his theater background allows him to articulate their needs. Mr. Henri still enjoys music and theater, but on a personal basis. He met his wife, Laura, while they did a show in Euclid and last year they per- formed in Chagrin Valley Little The- ater’s production of “Rocky Horror Picture Show.” — Stan Bullard 20120716-NEWS--16-NAT-CCI-CL_-- 7/13/2012 12:04 PM Page 1

WHO IN 16 CRAIN’S CLEVELAND BUSINESS TO WATCH HEALTH CARE JULY 16 - 22, 2012

DR. JONATHAN cian scientist,” he said. “It’s their job to help try to WHAT THE HEALTH CARE COMMUNITY IS SAYING STAMLER change the standard of Director, UH Discovery care to provide cutting- RICK CHIRICOSTA have much lower investment Stay humble. Be a continuous Institute edge new technologies returns ... learner. Be a cheerleader for your University Hospitals that move the needle.” President and CEO organization and your people. ... Dr. Stamler’s latest task Medical Mutual of Ohio TOM CAMPANELLA But all health care leaders face aving co-founded at University Hospitals is tough challenges in an era when five drug compa- leading the UH Discovery What types of attributes will be Associate professor and director health care is rapidly changing. nies and made several Institute, the research arm of the needed in tomorrow’s leaders? of the health care MBA program Tomorrow’s leaders will need to medical breakthroughs, health system’s $250 million drug In order to be successful, tomor- Baldwin Wallace University be open to new ways to do business HDr. Jonathan Stamler’s career has development initiative known as row’s health insurance industry and new been nothing short of prolific. But the Harrington Project for Discov- leaders will need to be able to What types of attributes will be funding models, his latest venture at University ery & Development. drive change throughout their or- needed in tomorrow’s health care such as Hospitals has the potential to be, as The project is expected to help ganizations as leaders? accountable he characterized it, a game changer. bridge a gap that experts in the the old model Given the overall financial chal- care organiza- After a 16-year career at Duke biosciences field have referred to as of risk selection lenges that the health care stake- tions. Those not University, Dr. Stamler joined Uni- the “valley of death” — the point in becomes anti- holders will be experiencing, it is willing to adapt versity Hospitals in 2010 to direct the development of a new drug at quated with the critical that health care leaders and embrace its fledgling Institute for Transfor- which it isn’t far enough along to at- implementa- have the ability to navigate these change will do a mative Molecular Medicine — a role tract outside investment to fuel the tion of the challenging wa- disservice to developed, in a sense, to create path to commercialization. Affordable Care ters. The core their organizations. Collaboration opportunities for physician scien- “The nice thing about the Har- Act (ACA). They attributes that is and will continue to be key. The tists at University Hospitals and rington project is it’s a national re- will need to un- health care Austen BioInnovation Institute in Case Western Reserve University. sponse to the problem,” Dr. Stam- derstand data analytics, value- leaders will Akron is a great example of the Physician scientists, he said, set ler said. based benefit design and know need to have good that comes when hospitals, apart academic medical centers Dr. Daniel Simon, director of the how to develop models that lead include the universities and others work such as UH Case Medical Center University Hospitals Harrington to favorable outcomes and lower following: the together. It’s good for each from their smaller counterparts. Heart & Vascular Institute and health care costs in the long run. ... vision to know organization, the region and, most “When it comes down to it, it’s chief of the division of cardiovas- Successful leaders in the health what is needed important, the patients we serve. not just level of care (academic cular medicine, first worked along- insurance industry will figure out to be successful in the new health At the end of the day, the success- medical centers) provide, but the side Dr. Stamler in the 1980s while how to do more with less, as care marketplace, the ability to at- ful health care leader is the one belief the patient has that the training at Harvard. administrative and product tract and develop outstanding who stays true to his or her physicians there have a level of “Jonathan has the combination distribution costs are limited leaders at all levels of the organiza- organization’s mission and keeps knowledge that is different and of questioning dogma and looking under the ACA. ... tion, and the integrity, passion and it alive and relevant for the next that they have something up their at things in a slightly different What are some of the most sig- ability to inspire an organization to generation. sleeve if there are problems,” said way,” Dr. Simon said. “In short, in nificant challenges going forward? adapt to and succeed in this new What are some of the most sig- Dr. Stamler, a trained cardiologist that package, you could clearly Health insurance already is value-based health care environment. nificant challenges going forward? and pulmonologist. identify there’s genius in there. unaffordable to many, and costs What are some of the most sig- The whole country has been “That something up their sleeve There are very few people you are expected to continue to rise nificant challenges going forward? debating health care lately, with is really the purview of the physi- meet like that.” — Timothy Magaw due to a number of factors. First The primary funding sources for many Americans glued to their and foremost, all insurers will be health care are Medicare, Medic- televisions and computers June 28 subject to additional fees and taxes, aid and employers. All three for the Supreme Court’s ruling on DOLANSKY “She builds teams that have the which will have to be passed on to funding sources are under severe the Affordable Health Care Act. skills and passion for improving the policyholders. ... The elimination financial stress, especially Medicare The ruling was followed by a wide continued from PAGE 13 care for patients.” of underwriting and pre-existing and Medicaid, which will result in range of commentary, from organizations turn to when they When she was a practicing nurse, condition limitations is a good major financial challenges for the thoughtful analysis to partisan want to improve. For the past eight Dr. Dolansky saw too many mistakes, thing from a social standpoint, but health care stakeholders. Reim- applause and jeers. But it is time to years, she has taught a course at often because of flawed systems, it is uncertain as to whether the bursement to health care providers move forward. It is not a perfect CWRU on continual quality improve- policies and training procedures. To- law will be effective at controlling of service increasingly will be risk- piece of legislation, but is a step in ment, with students who are nurses, day, she helps students and practi- anti-selection, or individuals sign- based (bundled payments, capita- the right direction. naturally, but also legal professionals, tioners wrestle with those same is- ing up for insurance only after a tion, etc.) vs. the current fee-for- The legislation’s strength is its administrators, medical students sues, as well as a slew of others being medical condition needing treat- service environment, which will emphasis on patient protection, and public health officials. brought on by things such as new ment is identified. ... Health insur- require a transformation of how but much more needs to be done. In addition, she works closely privacy laws and a rush toward ers will struggle if their premium and what services will be provided, After years of adaptations, America’s with and mentors individual nurses technology. increases are not permitted to and in turn have a rippling effect health care infrastructure is way and students, including four nurses The profession and the health care keep pace with the underlying on the entire health care industry. too complex and needs to be currently working for the veterans arena in which it operates are both health care cost increases. While Finally, the empowered, financially simplified. Patients need greater administration and 15 students improving on all fronts, she said, the mandate is designed to help engaged consumers, as a result of control of their health care pursuing their doctorate degrees in though there’s still more work to do. mitigate this problem, in the early higher deductibles, etc., with decisions, and we need to focus nursing from CWRU. Dr. Dolansky’s journey has taken years the amount of the penalty is increased access to user-friendly on prevention and primary care. Her own post-graduate education her to Case Western Reserve after so small that it will be ineffective cost and quality information, will Treatment of chronic illness has has allowed Dr. Dolansky to tackle having served in quality improve- at attracting the best risks to the provide additional pressure on the led to an explosion in health care big challenges in her field. Her suc- ment roles at University Hospitals insured pool. This problem is health care stakeholders to meet costs, yet so many of these condi- cess in doing just that has made her and the MetroHealth System. Ulti- compounded by the fact that the their value-based expectations. .... tions are preventable through a sought-after commodity, said mately, she hopes to continue to rating factor based on age will be better diet and lifestyle choices. Shirley Moore, professor and asso- work on quality improvements at a limited in the future to no more WILLIAM CONSIDINE We have lots of science on our side ciate dean for research at Case national level. than 3 to 1, which is going to have to establish metrics to measure the Western Reserve’s Frances Payne Given her success so far, it’s tough the effect of significantly raising President and CEO return of investment on our health Bolton School of Nursing. to bet against her. At age 50, Dr. premiums for younger, healthier Akron Children’s Hospital care dollars. Two great places to “Mary is probably most known Dolansky figures she’s still got some people, which will further reduce start would be setting metrics on for her skills at promoting collabo- time to work on the continued the likelihood of their purchasing What types of attributes will be reducing the prevalence of child- rations — among different profes- improvement of her profession. insurance coverage. On top of needed in tomorrow’s leaders? hood obesity and lowering infant sional groups, among health care “I’ve got 20 more years — I’m those issues, the current interest If you are fortunate to become mortality rates. An adage no one agencies and among learning insti- really excited about that,” she said. rate environment is an additional part of a children’s hospital family, argues with is: Children are our tutions,” she said of her colleague. — Dan Shingler challenge as health insurers will really do consider it a privilege. future.

St. Vincent Charity Medical Center among other things, three North- University last month agreed to ALSO KEEP AN EYE ON ... and the Sullivan Alliance to Trans- east Ohio health care systems in develop a Northeast Ohio regional form America’s Health Professions. June 2011 launched the for-profit extension campus of OU’s medical SCOTT SEIDELMANN NEOMED-CSU URBAN Students will be paired with a Community Health Collaborative. school that will be on the Clinic’s single site throughout their four- Currently involved are those South Pointe Hospital campus. It’s CEO PRIMARY CARE INITIATIVE year medical school experience, founding members: EMH Health- no small undertaking, carrying a Radisphere National Radiology Group allowing them, as initiative leaders care, Parma Community General price tag of $49.1 million. OU’s Northeast Ohio Medical Univer- put it, “to get to know the people Hospital and Southwest General $36 million commitment will Radisphere National Radiology sity and Cleveland State University of a particular neighborhood well Health System. “This collaborative provide support for building Group, which provides remote and in May launched the NEOMED- and increasing the likelihood the allows us to remain autonomous, renovations as well as faculty, staff on-site radiology services to com- CSU Urban Primary Care Initia- student will return post-residency remain responsive to our commu- and operations to provide medical munity hospitals, raised about $80 tive, aimed at identifying local to practice within that area and to nity, and to achieve the critical education. Cleveland Clinic’s million in financing over the last minority high school students serve those residents.” mass necessary for future success,” contribution of $13.1 million five years. The growing company interested in medical careers and said Dr. Don Sheldon, president includes capital improvements recently moved from Commerce placing them on an education COMMUNITY HEALTH and CEO of EMH Healthcare. and renovations to the building, Park to a new location on Park East track with a focus on primary urban COLLABORATIVE staff and operational support, as Drive in Beachwood. Also, its rev- care. NEOMED president Dr. Jay A. CLEVELAND CLINIC, OHIO well as medical education support. enue for the first five months of Gershen and CSU president With the aim of achieving better UNIVERSITY PARTNERSHIP The first class of 32 medical students 2012 increased 36% over the like Ronald M. Berkman recruited the economies of scale in terms of is scheduled to begin in July of period in 2011. support of organizations such as purchasing and physician retention, The Cleveland Clinic and Ohio 2015. 20120716-NEWS--17-NAT-CCI-CL_-- 7/12/2012 2:09 PM Page 1

JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 LARGEST NURSING HOMES

RANKED BY NUMBER OF CERTIFIED BEDS(1)

Name Medicare Address Certified provider Net patient Net income/ # of FTE Type of Rank Phone/website beds number Assets ($) revenue ($) (loss) $ employees Cost report date ownership Administrator

Menorah Park Center for Senior Living voluntary 1 27100 Cedar Road, Beachwood 44122 360 365094 11,051,829 47,921,595 (665,014) 475.0 June 30, 2010 nonprofit, Steven Raichilson (216) 831-6500/www.menorahpark.org church Park East Care and Rehabilitation 2 3800 Park East Drive, Beachwood 44122 274 365810 5,550,632 21,267,977 (992,900) 232.0 Dec. 31, 2010 proprietary, Bernard Centa (216) 831-4303/www.sunbridgehealthcare.com corporation Montefiore 3 One David N. Myers Parkway, Beachwood 44122 268 365046 33,574,950 27,088,501 (305,172) 329.9 June 30, 2010 voluntary Lauren B. Rock (216) 360-9080/www.montefiorecare.org nonprofit West Bay Care and Rehabilitation 4 27601 Westchester Parkway, Westlake 44145 259 365451 4,560,174 16,477,626 (219,721) 189.0 Dec. 31, 2010 proprietary, Karen Williams (440) 871-5900/www.sunbridgehealthcare.com corporation St. Augustine Manor voluntary 5 7801 Detroit Ave., Cleveland 44102 248 365883 8,495,784 19,702,162 (480,215) 159.3 Dec. 31, 2010 nonprofit, Andrew Koha (216) 634-7400/http://staugustinemanor.org church Center for Clinical Care 6 8800 Carnegie Ave., Cleveland 44106 220 365948 2,081,691 7,341,122 (1,475,700) 108.2 Dec. 31, 2010 proprietary, Monica Williams (216) 229-3300 corporation Broadview Nursing Home 7 5520 Broadview Road, Cleveland 44134 218 365757 2,090,246 17,044,502 322,567 204.8 Dec. 31, 2010 proprietary, Isaac Lifschutz (216) 749-4010/www.broadviewmulticare.com corporation ManorCare Rocky River 8 4102 Rocky River Drive, Cleveland 44135 209 365392 16,181,541 11,697,609 21,484 151.9 May 31, 2011 proprietary, Jody McConnell (216) 251-3300/www.hcr-manorcare.com other Willow Park Skilled Nursing & Rehab.Center 8 18810 Harvard Ave., Cleveland 44122 209 365828 2,475,659 11,663,526 10,712 162.5 Dec. 31, 2010 proprietary, Terri Plush (216) 752-3600/www.atriumlivingcenters.com other University Manor 10 2186 Ambleside Road, Cleveland 44106 208 365832 1,916,952 9,169,157 130,858 128.3 Dec. 31, 2010 proprietary, Matthew Johnson (216) 721-1400 corporation Carington Park 11 2217 West Ave., Ashtabula 44004 207 365286 9,282,138 13,023,079 1,906,087 166.6 Dec. 31, 2010 proprietary, Kelly Johnson (440) 964-8446/www.carington.com corporation St. Luke Lutheran Community-North Canton voluntary 12 220 Applegrove St. NE, North Canton 44720 202 365521 15,573,599 16,077,073 1,394,479 244.0 Dec. 31, 2010 nonprofit, Evelyn Moore (330) 499-8341/www.stlukelutherancommunity.org church Andover Village Retirement Community 13 486 S. Main St., Andover 44003 200 365411 2,486,846 10,680,187 (333,947) 133.0 Dec. 31, 2010 proprietary, Phillipp Panno (440) 293-5416/www.andovervillageretirement.com partnership Hanover House Nursing and Rehabilitation Center 13 435 Avis Ave. NW, Massillon 44646 200 365292 2,165,558 13,424,896 195,005 164.0 Aug. 31, 2010 proprietary, Miranda Biglin (330) 837-1741/www.communicarehealth.com corporation ManorCare Euclid Beach 13 16101 Euclid Beach Blvd., Cleveland 44110 200 365594 16,199,736 11,244,679 463,153 143.4 May 31, 2011 proprietary, Joe Wilson (216) 486-2300/www.hcr-manorcare.com other Omni Manor 13 3245 Vestal Road, Youngstown 44509 200 365433 13,789,657 11,893,837 334,337 195.0 Dec. 31, 2010 proprietary, Paul Fabian (330) 793-5648/www.windsorhouseinc.com corporation Pleasant Lake Villa 17 7260 Ridge Road, Parma 44129 199 365706 3,582,481 19,035,137 756,206 242.8 Dec. 31, 2010 proprietary, James J. Taylor (440) 842-2273/www.lhshealth.com corporation Crandall Medical Center 18 800 S. 15th St., Sebring 44672 198 365574 4,828,812 14,912,613 69,595 234.3 Dec. 31, 2010 voluntary Robert Cameron (330) 938-6126/www.copelandoaks.com nonprofit Golden Living Center at Western Reserve 18 9685 Chillicothe Road, Kirtland 44094 198 365290 2,082,310 11,595,300 731,500 82.0 Dec. 31, 2010 proprietary, Amanda Eberhart (440) 256-8100/www.goldenlivingcenters.com corporation Greenbrier Senior Living Community 20 6455 Pearl Road, Parma Heights 44130 194 365192 2,302,302 13,598,588 (36,989) 167.5 March 31, 2011 proprietary, Jill Burke (440) 888-5900/www.communicarehealth.com corporation Lutheran Home Inc. 21 2116 Dover Center Road, Westlake 44145 192 365020 42,316,713 18,269,593 (317,168) 204.1 Dec. 31, 2010 proprietary, Janet M. Harst (440) 871-0090/www.concordreserve.org corporation Kindred Transitional Care and Rehabilitation - The Greens 22 1575 Brainard Road, Lyndhurst 44124 190 366114 14,934,151 16,818,185 (390,849) 168.3 June 30, 2011 proprietary, NA (440) 460-1000/www.kindredhealthcare.com corporation Wickliffe Country Place 23 1919 Bishop Road, Wickliffe 44092 188 365381 3,695,238 14,219,637 795,850 198.6 Dec. 31, 2010 proprietary, Deborah Farris (440) 944-9400/www.lhshealth.com corporation Lake Pointe Health Center 24 3364 Kolbe Road, Lorain 44053 182 365623 2,168,066 12,210,307 (221,408) 148.3 May 31, 2011 proprietary, Cathy Myers (440) 282-2244/www.communicarehealth.com corporation Briarfield at the Ridge 25 3379 Main St., Mineral Ridge 44440 180 365823 13,177,055 10,884,204 (84,782) 142.0 Dec. 31, 2010 proprietary, Stacey Bettura (330) 652-9901/www.briarfield.net partnership Suburban Pavilion 25 20265 Emery Road, North Randall 44128 180 365215 2,478,910 13,755,723 453,742 145.1 Aug. 31, 2010 proprietary, Mark Grippi (216) 475-8880/www.communicarehealth.com corporation Wyant Woods Care Center 25 200 Wyant Road, Akron 44313 180 365779 1,960,681 13,220,961 532,704 154.2 March 31, 2011 proprietary, Judy Dennis (330) 836-7953/www.communicarehealth.com corporation Pleasantview Care Center 28 7377 Ridge Road, Parma 44129 179 365084 782,222 15,762,013 231,005 186.2 Dec. 31, 2010 proprietary, David Farkas (440) 845-0200/www.pleasantview-care-center.com corporation ManorCare North Olmsted 29 23225 Lorain Road, North Olmsted 44070 178 365310 12,746,706 13,783,942 1,137,530 169.3 May 31, 2011 proprietary, Daniel Zawadzki (440) 779-6900/www.hcr-manorcare.com other Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our RESEARCHED BY Deborah W. Hillyer lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Information is from SNFData Resources LLC, www.snfdata.com and the nursing homes. To purchase this list and other published lists in PDF and Excel formats WWW.CRAINSCLEVELAND.COM/LISTS 20120716-NEWS--18-NAT-CCI-CL_-- 7/12/2012 4:00 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 16 - 22, 2012

Contact: Toni Coleman Copy Deadline: Wednesdays @ 2:00 p.m. Phone: (216) 522-1383 All Ads Pre-Paid: Check or Credit Card Fax: (216) 694-4264 E-mail: [email protected] REAL ESTATE AUCTIONS INVESTMENT OPPORTUNITY REAL ESTATE AUCTION / JULY 31 PUBLIC AUCTION 23 Acres, Incredible Retail Investment/Development Opportunity! Guernsey County Tuesday, September 11th @ 3PM Mineral Rights, Bonus, Surface Rights. I-77 and 541. LAKECREST 232,283 sq ft Former Lumberyard, $235,000. TOWN Cleveland Ohio 440-526-4500 CENTER 8680 sq ft-2.47 Acres Truck Repair Facility - Tenant Occupied, Wickliffe Ohio FOR RENT US-250, Sandusky, 110,330 sq ft Industrial Bldg. 2,100 Sq. Ft. Penthouse OH 44870 Great Lake View. 3 Bdrm/2 Bath Tenant Occupied, Wickliffe Ohio In-suite Washer/Dryer. Underground parking and much more! SHERIFF’S SALE 50 Parcels of Vacant Industrial Land Call today. TO BE SOLD BY ORDER OF THE ERIE COUNTY COURT OF Wickliffe Ohio 216-228-7761 17600 Detroit, Lakewood COMMON PLEAS CASE NO. 2011CV0374 66,490 sq ft-6.24 Acres Industrial www.RentCastlewood.com Located in Sandusky, OH - ranked one of the top vacation destinations in America. Some of the stron- gest traffic counts and demographics imaginable. Just 1 hour west of Cleveland and East of Toledo. Building -Tenant Occupied LAND 3 PARCELS OFFERED INDIVIDUALLY Warren Michigan Parcel 1: Fully Improved 2.2 Parcel 2: Fully Improved 7.5 Acres Parcel 3: Fully Improved 29 Acres 597 Acres Raw Land Alturas California Outstanding Lot Acres ground leased to newly with 5,000 S.F. building leased zoned PUD for a variety of possible Macedonia, approx. 1/2 acre constructed Aldi Supermarket to Sherwin Williams Paints with uses. Includes streets, sewer, water, For information and bid packages lot in prime location, beautiful with multiple extensions multiple extensions & renewals. and storm water retention system. Williams & Lipton Company view, close to recreation, & renewals. Current rent is Extra acreage for expansion. Fully signalized intersection at shopping, interstates etc. $90,000 +/- per year. Current rent is $82,620 +/- per year. US-250 and Dewitt. www.williamsandlipton.com Ready to build. 80's. PUBLISHED RESERVE PUBLISHED RESERVE PUBLISHED RESERVE License #2007000129 440-655-3647 PRICE: $650,000 PRICE: $1,780,000 PRICE: $1,400,000 (2/3rds Sheriff’s Appraised Value) (2/3rds Sheriff’s Appraised Value) (2/3rds Sheriff’s Appraised Value) On-Site Inspections: 12:00 Noon to 2:00 P.M., Thursdays, July 12, 19 & 26 For daily on-line LUXURY PROPERTIES For Brochure & Terms of Sale call Mark Abood or Mike Berland 216-360-0009 updates, sign up @ Chartwell Group, LLC · Chartwell Auctions, LLC CrainsCleveland.com/Daily Michael Berland, Court Appointed Auctioneer · www.chartwellauctions.com LUXURY Court ordered Land Auction OFFICE SPACE PROPERTY Tues July 24 @ 1 pm. Minimum opening bid is $250,000. Previously FOR SALE slated for 128 residential condo units. Parcel # 003-18B-07-268 is 14.89 acres with 738.44 feet of frontage on Skyview Dr. Located in Brunswick DOWNTOWN OFFICES List your high-end city. Parcel # 001-02B-01-016 is 0.96 acres and has 106.5 feet of frontage Find out why: 120 + Leases signed in the past 12 months in the real estate here for Superior Building and City Club Building on Boston Rd just East of 42. Auction will take place at the Forest Hills great high-end Rec Center on Skyview. See the Auction website for full details. *Included in Rate for 2000 s.f. + tenants: Additional Amenities: www.OhioRealEstateAuctions.com Internet Bandwidth In building restaurants, barbershop, boutique exposure. 1 Storage room 24 hour electronic access Auctioneers Jeff Bub and Barry Baker 877-Bid-Ohio Discounted Parking On site management Exterior Signage (Superior Building Only) Building Greeter/Doorman Smaller Offices and Suites Also Available To Advertise your Luxury Property Superior Building City Club Building 815 Superior Ave. 850 Euclid Ave. contact

Contact: Abram Schwarz *Some restrictions apply Owner Operated Parking Garage Nearby Toni Coleman at E-MAIL US YOUR AD... 216-255-3913 or [email protected] (216) 771-55172 [email protected] CLASSIFIED FOR BUSINESS SALE SERVICES Looking for Brains? JOB NOT FOR THE BIG BOYS WANTED: Stys Inc. Since 1962 FLYNN CALL CRAIN’S SEEKERS: Used 5 Stretch Wrap Machines ENVIRONMENTAL Your $3,500 to $5,500. We now post Pallet Racking, Forklifts, Scissor Lifts, For Assessments subscription to Metal Working Machinery. To place your (800) 690-9409 Crain’s Cleveland POSITIONS WANTED STYS 216-641-7897 www.flynnenvironmental.com Crain’s Cleveland Business in the Business Executive Recruiter ad Classified section of ATTENTION To sign up CrainsCleveland.com Call Toni Coleman at BUSINESS SERVICE OWNERS! call toll-free at 1-877-824-9373 at 216-522-1383 NO CHARGE. Submit your business card to or on-line @ ___ (Up to 150 words) promote your service. CrainsCleveland.com Click on Where to find your professional! E-Mail info to To find out more, contact “Subscribe Now.” Confidential box numbers available [email protected] Toni Coleman at 216.522.1383 @ $35 per ad. 20120716-NEWS--19-NAT-CCI-CL_-- 7/13/2012 3:20 PM Page 1

JULY 16 - 22, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS

So, how healthy were the people tested at building along the lakefront that Ariel Ven- JULY 9 - 15 This marketing gets to the conference? Of 335 samples analyzed, tures LLC, a finance and tax advisory firm, the heart of the matter 41% had high cholesterol or low “good” cho- and its founding partner, Radhika Reddy, The big story: The Cleveland-Cuyahoga lesterol levels, 28% appeared to have hard- have renovated to be a center for interna- ■ Talking about myeloperoxidase isn’t the County Port Authority is planning to ask voters to ening of the arteries and 12% had high MPO tional businesses. best way to get people’s attention. Even if approve a big increase in the Port Authority’s tax levels. About half the people with high MPO At both events, Mr. Cimperman took to you abbreviate it to “MPO.” levy. The increase would raise a levels had normal cholesterol levels. — the microphone with a cherubic Daniel Thus, Cleveland HeartLab LLC, one of property owner’s annual taxes Chuck Soder clinging to his side. Northeast Ohio’s fastest-growing biomed- from $3.50 per $100,000 of “I brought along my chief of staff,” he told ical companies, has revamped the way it assessed value to $20, a 471% both audiences as he began his remarks. — markets its flagship medical test. increase. The levy would Proof that you’re never Jay Miller Now the Cleveland company encourages bring in about $18 million, or people to get “it” — inflammation testing — too young for politics $90 million over the five-year to see if they are at risk of suffering a heart ■ Cleveland City Councilman Joe Cimper- life of the levy. If voters approve You may not have heard attack. The blood test looks for MPO man spends Thursdays with his infant son, the November levy, the Port Authority will take enzymes that are produced as a result of Daniel. the last on this project on an expanded role in developing and main- inflammation in a person’s blood vessels, That included last ■ The looming end of litigation over Avenue taining public access to the waterfront. See story which can cause a heart attack. Thursday, July 12, when Tower in downtown Cleveland with its sale on page 4. The new tactic worked pretty well during he showed up at two to investors does not end efforts by Cleve- a test run in April at the TEDMED 2012 con- public events carrying land-based homebuilder Nathan Zaremba In the pipeline: Hilcorp Energy Co. and ference in Washington, D.C. There, more a backpack of diapers to develop his Avenue District plan on East NiSource Gas Transmission and Storage, both than 500 people had Cleveland HeartLab and other supplies 12th Street. of Houston, plan to build a large natural gas pro- check their blood for MPO and other bio- over his suit jacket — Mr. Zaremba will market and finish three cessing plant and pipeline system in Northeast markers that suggest whether they are at risk along with a curly- unsold townhouses in the district near East Ohio and western Pennsylvania. The project is of suffering a heart attack or stroke. haired blond baby in his 12th and Lindazzo Avenue. He even may slated to come online in late 2013, when it will Hundreds of people at the event were arms. build more units there on sites controlled by be able to process 200 million cubic feet of gas wearing stickers that read “I got it,” CEO Not only did Daniel not raise a fuss at ei- Fifth Third Bank. per day, fed to it by 50 miles of 20-inch pipeline Jake Orville said. ther event, he turned out to be a great ice- So says attorney Daniel Lindner, who that will be constructed for the project. A total “This is really helping us make our story breaker for his father. represented Mr. Zaremba on both properties. price tag was not disclosed, nor was the location sticky,” he said. In the morning, Mr. Cimperman appeared Fifth Third had sued to recoup its land and of the plant, which would process “wet gas” Cleveland HeartLab can run a total of 103 at a committee meeting of the Cleveland- townhouse loan in a May 7, 2010, case in and remove from it valuable liquids used in the tests on blood samples that they receive Cuyahoga County Port Authority to offer his Cuyahoga County Common Pleas Court and manufacturing of plastics and petrochemicals. from doctors, but it’s the MPO test, which support for the agency’s plan to put a prop- a related Medina County case. The Medina was developed by the Cleveland Clinic, that erty tax increase on the Nov. 6 ballot; the County case was settled July 5. The Cuyahoga Merchant services: A publicly traded holding has helped the company attract attention. increase is designed to clean up and enliven case remains open for administration. company plans to buy Electronic Merchant Several studies have shown that patients the Cleveland waterfront. (Read more on Mr. Lindner stopped short of calling the Systems of Independence in a cash-and-stock with high MPO levels are at greater risk of a page 4.) bank and Mr. Zaremba partners, noting, deal that could exceed $100 million in value. The heart attack, even if they don’t have high That afternoon, he attended the ribbon “Let’s just say their interests are aligned.” — acquisition should accelerate the local company’s cholesterol or high blood pressure. cutting at Ariel International Center, a Stan Bullard growth, said Bipin Shah, chairman and CEO of the holding company, Universal Business Payment Solutions Acquisition Corp. of Chester County, Pa. Electronic Merchant Systems is a 250-employee WHAT’S NEW BEST OF THE BLOGS business that resells payment card processing services and provides services related to elec- Excerpts from recent blog entries on with the proliferation of local incubators tronic transactions. CrainsCleveland.com. and other support networks, has freed entre- preneurs all over the country to innovate, It’s high time: The end of litigation limbo is Going postal has and take risks, without losing their shirt.” in sight for the Avenue Tower condominium a new meaning In its snapshot of Cleveland, FastCompany project at the corner of East 12th Street and St. .com called attention to “a salient, if under- Clair Avenue in Cleveland. Cuyahoga County ■ The Postal Service’s financial woes are celebrated, fact of Cleveland’s talent pool: Common Pleas Judge John O’Donnell issued causing problems for all sorts of companies, The city has a plethora of middle-aged workers a journal entry foreclosing on the property and including Novex Systems LLC in Valley View. with great ideas and experience in spades.” authorizing a settlement between Avenue District With service cuts happening now and more John Dearborn, president of developer Nathan Zaremba and multiple lenders. on the way, The New York Times Cleveland-based JumpStart Inc., The pact calls for a sale to an investor group that THE COMPANY: Kent Elastomer said Postal Service customers said the average tech-job appli- will operate the 57 unsold condominiums at the Products Inc., Kent already are bemoaning delays. cant here is in his or her mid- 10-story tower as rental apartments. Among them is Novex Systems, 40s and comes from traditional THE PRODUCT: Pro-Free tubing which sends out thousands of industry. “Older workers bring not Mine, all mine: Cliffs Natural Resources Inc. utility bills and fundraising letters just experience with them, they bring a said its Cliffs Australia Coal Pty subsidiary Kent Elastomer, a maker of both non-latex for nonprofit groups and “lost a whole network of people,” he said. agreed to sell its 45% economic interest in the and natural rubber latex tubing, has released major client after bills arrived three weeks Sonoma joint venture coal mine in Queensland, its line of Pro-Free non-latex tubing as a stock after they were mailed,” The Times said. Here’s a project Australia, to QCoal Sonoma Pty. Cliffs expects to product for use in the medical and food-and- Michael Wheeler, Novex’s vice president, with some pop collect about $141 million Australian dollars, equal beverage sectors. told the paper that a utility company that had ■ to $145 million U.S. dollars, in the transaction. The tubing feels soft to the touch and is been a client for more than 25 years pulled TheAtlanticCities.com called attention to The assets to be sold include Cliffs’ interests in “ideal for latex-sensitive applications where its account because of late deliveries. the Pop Up Rockwell project, a week-long the Sonoma mine along with its ownership of an natural rubber latex is not an option,” the In March, “Novex had sent out water and installation in downtown Cleveland. affiliated wash plant. company says. It’s comprised of a low- sewer bills for the utility through first-class “What do Cleveland bike advocates, durometer TPE blend that is “designed to mail to customers in Nevada,” according to Homeland Security officials, and the admin- Go with the flow: A U.S. Army unit awarded provide the same high level of performance The Times. “The company expected the bills istrators of the Northern Ohio Regional a $250,000 grant to a research partnership that offered by Kent’s natural rubber latex tubing,” to arrive within a few days. But because of Sewer District have in common?,” the website will test the effectiveness of a urine management according to Kent Elastomer. problems at a Reno, Nev., processing center, asked. They “all agree on the promise” of the technology developed by a startup in Concord. Pro-Free joins the company’s existing line it was as long as three weeks before the bills Pop Up Rockwell project that ran April 21- The startup, Future Path Medical Holding Co., will of Free-Band latex-free tourniquets. Tubing is were delivered.” 27 and transformed five blocks of downtown share the grant money with its research partners, available in four standard sizes and pack- As Mr. Wheeler noted, “Our client decided Cleveland “by the addition of a protected the Dwight David Eisenhower Army Medical aged in 50-foot continuous lengths in a poly- to go with a company closer to their delivery two-way cycle track, benches surrounded Center in Georgia and the Center for Telehealth lined, re-shippable carton, the company says. areas to make sure the mail got delivered on by flowers and grasses, and transit waiting at Georgia Health Sciences University. Benefits of the Pro-Free line “include its time.” stations complete with Wi-Fi.” biocompatibility (and) the ability to be sterilized, Bike advocates liked the cycle track, while This and that: Kent State University con- as well as complying with all current and A backhanded compliment, sewer officials “liked the way the plantings cluded the largest fundraising campaign in its required regulations,” according to Kent Elas- could trap and filter stormwater.” And a history by raising $265 million, surpassing its tomer. but a nice one nonetheless Homeland Security official “was thrilled by original goal by $15 million. … The Ohio Manu- The company says all orders are shipped ■ Some innovative businesses and ideas the atmosphere of safety the pop-up street facturing Institute received a $150,000 grant from stock within three business days. “are springing up in the least likely places,” created, by slowing traffic and attracting from the Ohio Department of Development. For information, visit www.KentElastomer FastCompany.com said, and Cleveland is pedestrians to stop, sit and provide what he The institute will develop a process to help Ohio .com. one of the cities where that’s happening. calls ‘natural surveillance.’” manufacturers to access technical services offered “The Internet has lifted the cost and The project was designed by grad stu- by public and private resources in the state. Send information about new products to man- geographic barriers of starting a business,” dents from Kent State University’s Cleve- aging editor Scott Suttell at [email protected]. according to the website. “That, combined land Urban Design Collaborative. 20120716-NEWS--20-NAT-CCI-CL_-- 7/12/2012 2:10 PM Page 1

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