Tax, Liquidity Concerns Play Role INSIDE by JOEL HAMMOND Mier League, the Top Soccer League Aug

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VOL. 33, NO. 30 $2.00/AUGUST 6 - 12, 2012

BROWNS SALE ANALYSIS: WHAT MOTIVATED RANDY LERNER? Offices at Burke first in plan for lakefront Geis Cos. will lease 20 acres, talk with tenant

By STAN BULLARD [email protected]

An office campus is in the works to become the first project out of the starting blocks in Mayor Frank Jack- son’s plans to make lakefront development a reality near Cleveland’s central business district. Geis Cos. of Streetsboro, a suburban contractor and developer that has developed a strong taste for city projects the last few years, is pursuing a plan to gain control of parts of Burke Lakefront Airport’s parking lot and western lakefront edge near the USS Cod submarine museum. Geis would use the land for an office building, and perhaps more construction in the future, near North DAVID RICHARD/ASSOCIATED PRESS Coast Harbor. Outgoing Cleveland Browns owner Randy Lerner (left) converses with president Mike Holmgren at practice in Berea on July 28, after news of a potential sale leaked. The Jackson administration this Wednesday, Aug. 8, will submit to Cleveland City Council legislation See BURKE Page 4 Tax, liquidity concerns play role INSIDE By JOEL HAMMOND mier League, the top soccer league Aug. 2, and that now faces a vote of Uncertainty over [email protected] in the world — it simply could be NFL owners. Retail center that Mr. Lerner never felt connected However, tax and estate planning redos popular capital gains rate, Randy Lerner might have been to the Browns after inheriting the considerations likely played a big Owners of older sick of the Cleveland Browns’ poor team from his late father, Al, in 2002. role in the decision, local invest- retail centers across potential for hefty on-field performance and fans’ crit- As is his way, Mr. Lerner may ment advisers and tax lawyers say. Northeast Ohio are icism of him. never say publicly what led him to In the Browns and Villa, Mr. investing in fixups in estate tax factor in Or, as suggested last week by his sell the Browns to Tennessee busi- Lerner owns two pricey assets; hopes of drawing new top executive at Aston Villa — Mr. nessman Jimmy Haslam III in a Forbes valued the Browns at $977 tenants. PAGE 3 Lerner’s team in the English Pre- deal they reached last Thursday, See BROWNS Page 25

Accrediting body again issues show-cause order for Chancellor U.

By TIMOTHY MAGAW Citing concerns with Chancellor’s itation could be a crippling blow February 2010 with a similar show- found that things in its view aren’t [email protected] leadership, financial health and the to Chancellor, as its students no cause order, but the university going swimmingly at Chancellor, quality of its academic programs, longer would be eligible for federal learned in March 2011 it would though university president Robert For the second time in the last the Higher Learning Commission financial aid. That outcome would remain accredited after a year-long Daugherty suggests otherwise. Mr. three years, Chancellor University in Chicago — the university’s cut off a critical revenue stream for review process. Three months later, Daugherty contends the latest is at risk of losing its accreditation, accrediting body — issued a “show- the institution. Chancellor moved from Cleveland’s show-cause order is a criticism of which if yanked could jeopardize cause” order in late June demanding The Higher Learning Commis- Midtown area to an office park in the for-profit education business in the future of the small, for-profit Chancellor prove it deserved con- sion slammed Chancellor, formerly Seven Hills off Rockside Road. general rather than an indictment college in Seven Hills. tinued accreditation. Losing accred- known as Myers University, in Now, the accrediting agency has See CHANCELLOR Page 26 30 7

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AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 At-home nat gas fuel race pits big vs. little

sell for $500 or less. The goal “An ARPA-E grant is Grant helps Eaton join fray, but well-known Dan Moore has head start is to bring out a working an enormously significant prototype that can be award. It’s very hard to get. By DAN SHINGLER into commercial success. Agency-Energy — mercifully best moved into manufacturing ... This is huge for us,” Mr. [email protected] It’s Eaton Corp. vs. Dan T. Moore known as ARPA-E — to develop an by the end of 2015. Herbst said. in the race to turn American homes inexpensive filling system that con- “The key reason that Mr. Moore agrees on that We might learn soon which is into natural gas filling stations, and sumers could hang on their garage ARPA-E came out with point. better at bringing innovation to folks in the natural gas industry are walls and use to refuel vehicles that this solicitation and this “We applied for that as market — a large international cor- cheering them on, even though they run on natural gas. program is really so they Moore well, but didn’t get it,” he poration with more resources at its might not care who wins. Under terms of the grant, Eaton can push widespread deploy- said, informed of Eaton’s disposal than some nations, or a Eaton is the new entry, announcing will use $3.4 million from ARPA-E ment of natural gas for passenger initiative while Mr. Moore was successful entrepreneur with a July 20 that it had won a coveted and $800,000 of its own research- cars in the U.S.,” said Eaton vice navigating a motorcycle from Su- nimble and adept organization and a grant from the U.S. Department of and-development money to develop president for government programs, dan to Egypt on one of his annual track record of turning imagination Energy’s Advanced Research Projects a home refueling station that can Chris Herbst. See FUEL Page 9

THE WEEK INSIGHT IN QUOTES “If buyers know your Investing family has been left with a pile of crap to clean in private up, you’re not going to get what it’s worth.” equity, with — Joseph G. Corsaro, Corsaro & Associates law firm in Westlake. Page One more perks “Every member of the Fund sponsors courting leadership team ... those with piles of cash would swear in a By MICHELLE PARK court of law, on the [email protected] Bible and the U.S. These are opportune times to be Constitution that this holding the cash that private equity institution is signifi- funds want. Most private equity fund sponsors cantly better than it that are out raising money this year CHUCK SODER know it’s an investor’s market. Just was when it (last) got A 275-seat Quaker Steak & Lube soon will open at the reimagined Lakewood Plaza. ask John M. Saada, a partner at Jones off show-cause.” Day who advises on private equity matters. — Robert Daugherty, president, Chancellor University. Page One “Most sponsors realize that it’s more important to get a fund closed SPICING UP SHOPPING than to argue with their investors,” “Last year,we were Mr. Saada said. New, existing owners of Northeast Ohio’s older retail centers Investors, or limited partners, are still kind of in growth receiving a greater share of the fees work to make them more alluring for customers that portfolio companies pay to fund mode. This year, it’s a sponsors, and they’re demanding — often successfully — that sponsors little more stagnant.” By STAN BULLARD delay collecting any profit as port- — William Gaskin, president of [email protected] the Precision Metalforming Associ- folio companies are sold until investors ation. Page 7 are paid back their investments. t Garfield Mall, its new According to Preqin, a provider owner, Glimcher Group of information for the alternative “The attorney won’t assets business, more than 1,870 of Pittsburgh, plans to private equity funds are seeking cap- pick up the phone dress up its façades, ital worldwide. Industry experts say addA new signs and rename it a combination of more funds pursuing and make the obnox- capital and fewer investors willing to ious collections phone Garfield Commons in a quest for put their money into them has led to tenants to cure a 16% vacancy friendlier terms for investors. call. … What’s impor- “When everyone’s pockets were rate at the 38-year-old shopping STEPHEN HERRON lined with cash … then Blackstone tant for them is man- Garfield Mall in Garfield Heights center. (the private equity behemoth) didn’t aging that relationship.” Garfield Heights Mayor Vic empty movie theater that closed really have to listen” to investors’ — Sam Shipley, chief information desires, said Tim Milanich, director officer, Ulmer & Berne. Page 9 Collova is overjoyed. He was 15 years ago.” of private investments for Case happy when a court-appointed What’s happening at Garfield Western Reserve University’s Office of Investments. Mall reflects a low-key revival in “In choosing to stay receiver repaved the pock- “In the past, they’d say, ‘Well, we marked parking lot while the Northeast Ohio’s shopping center have six people behind you that will behind when the property at 12532 Rockside Road trade. New owners, sometimes take” an investment on our terms, Mr. Milanich said. country is evolving went through a foreclosure pro- buying distressed assets, and That’s not the case any longer for toward a more uni- ceeding capped by Glimcher’s existing owners are undertaking many fund sponsors, also known as general partners. purchase. improvements at older retail fied America, the “You’re not going to see private leadership of the Boy “Its problem is age,” the mayor centers while developers plan equity firm managers building houses said of the 300,000-square-foot construction of new ones as the in Hawaii because of the management Scouts is doing young fees” they collect, Mr. Saada said. Scouts a disservice.” property. “It’s very popular, with business shakes off years of “You’ll see the general partners Marc’s and other tenants. Its downturn-induced ennui. — From a Personal View by See INVESTING Page 11 Ginger Casey. Page 10 biggest vacancy is probably the See SHOPPING Page 12 20120806-NEWS--4-NAT-CCI-CL_-- 8/3/2012 4:03 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 Burke: Offices could fuel other projects continued from PAGE 1 The plans rest on landing a big “(Geis Cos. is) developing authorizing the city’s Division of office tenant; a long shot would be Port Control to enter into a one-year Cuyahoga County, which is searching some exciting plans for option with Geis to lease 20 acres at for more than 200,000 square feet to the city property.” the airport’s west end closest to the replace its antiquated administra- – David Browning, managing harbor. tion building at Ontario Street and director, CBRE Group Ricky Smith, director of port Lakeside Avenue and to consolidate control, said the option to lease, which offices spread throughout downtown. Others are less upbeat. W. Dennis could be renewed for a second year, However, a lakefront headquarters Keating, a professor at the Maxine gives Geis the ability to negotiate would be removed from easy public Goodman Levin College of Urban with a prospective tenant interested access to county offices. Affairs at Cleveland State University, in the location. The option also gives The public will get an idea which said that when the mayor’s lake- the developer time to conduct plan- developers and property owners are front plan was adopted earlier this ning studies of the site and prepare likely to take their shots at bagging year, he greeted it with skepticism. plans for the project, Mr. Smith said. the county’s offices at a bidders’ “This seems a piecemeal plan, with “That option leaves the city the conference slated for tomorrow, parts accomplished by the city, the authority to entertain proposals Aug. 7. Bids will be due Sept. 14. port authority and the Cleveland from other developers if they come Rumbles about Geis undertaking Browns,” said Dr. Keating, who holds forward,” Mr. Smith said. “If Geis a waterfront plan are staples of a doctorate in regional planning. “I does not proceed, they will give the conversation at commercial real would have felt better if there were city the results of the studies, which estate gatherings. David Browning, a developer standing with the mayor would be helpful in continuing to managing director of CBRE Group who had a plan and financing when pursue development of the site.” Inc.’s Cleveland office, said Geis has the mayor announced it.” Mr. Smith said he does not know the previewed the plan with several big However, Dr. Keating acknowl- identity or size of Geis’ prospective office building tenants and he expects edged that piecemeal development tenant. to hear a formal announcement soon. beats stalled plans — if the pieces UPCOMING Mr. Smith said the city has made it “They are developing some exciting actually get done. Mr. Smith said clear that Mayor Jackson’s lakefront plans for the city property in and the mayor has emphasized that if EDITORIAL development plan — the latest in a around the Cod and the airport,” the business community does not series of lakefront plans presented Mr. Browning said. “There will be participate in the plan, it will not by Cleveland mayors over the last an opportunity to do large-scale become a reality. FEATURES three decades — would need private office development there.” participation to make it a reality. The They get things done Shades of Baltimore? city approached developers with the Greg Geis, who with his brother, OHIO MBA idea developing lakefront properties, Under Mayor Jackson’s lakefront Fred, operates Geis Cos., responded but none responded until Geis surfaced. plan, the area on the south side of to calls with an email saying, “We “Geis has a very strong track the Burke air terminal — dubbed look forward, pending council record and is committed to Cleveland” the “Burke Redevelopment District” approval, to helping in the redevel- GUIDE while also being native to the region, on city planning documents — opment of the Burke Redevelop- Mr. Smith said. “Geis has the capa- would include more than 500,000 ment District. We hope to aid the bility and shared our urgency to square feet of office space in four city and county in realizing the develop the lakefront. We feel they buildings of two to nine stories. The beginning of a long time dream that Issue date: August 27 are the right firm to pursue it.” buildings would be clustered in a is the waterfront development.” A downtown development source circular pattern around the inlet Geis Cos.’ skills as a contractor Ad deadline: August 16 who viewed the plans said they are housing the Cod. give the company an edge in getting preliminary and rely on details that Asked if the concept further divides things done versus other developers would be filled in after gaining a sub- the city’s downtown office market that rely on outside contractors, said stantial anchor for the project. into independent segments, Mr. the downtown development source, Browning argued that the plan uses who requested anonymity because the lakefront acreage to house a he is not authorized to discuss the substantial tenant that might not be Geis plan. accommodated elsewhere downtown. The Geis brothers also have That worker-rich tenant could seed earned their stripes in doing non- the development of restaurants and traditional development in the city. wine bars along East Ninth Street, In Cleveland’s Midtown neigh- Mr. Browning said. Under Mayor borhood, a partnership including Jackson’s plan, the Cleveland-Cuya- the Geis brothers, frequent partner hoga County Port Authority would James Doyle and the Coyne family develop the area surrounding the produced MidTown Tech Park, East Ninth Street Pier and water- which broke new ground by putting front museums, the Rock and Roll a suburban office-warehouse project Hall of Fame and Museum and in an older city commercial district. Great Lakes Science Center. They’ve recently unveiled plans to Resources. Mr. Browning speculated that if buy and renovate what would be a the plan had been in place earlier, third building that would be part of downtown might have stood a better the tech park. When companies need to know the value of their business chance at keeping Eaton Corp.’s Negotiating a deal for city-con- headquarters (the company is trolled land would make a lakefront or find ways to improve it, SS&G Parkland has the tools building a massive structure in project easier to finance than if the Beachwood) or landing American project required an outright land and experience to get it done with precision. Greetings Corp., which plans to leave purchase from an investor or private its longtime complex in Brooklyn owner. for a planned headquarters at Crocker However, having the quietly Park in Westlake. determined Mayor Jackson as its Mr. Smith, a Baltimore native, advocate may be the strongest card recalled that the Maryland city’s in Geis’ hand. At the topping off famed Inner Harbor project provided Combining The Parkland Group Inc.’s turnaround and management consulting experience with SS&G’s ceremony earlier this summer of it with a new level of prime, class A Ernst & Young Tower along the east business valuation, litigation, and forensic consulting expertise, SS&G Parkland’s expert services include: office space, which opened the door bank of the Cuyahoga River, the › bankruptcy and receiverships for other tenants to move into the mayor clearly was happy to show off › business valuation vacated area. the office building to naysayers who “That created a whole new set of › fraud detection and deterrence maintain that Cleveland lacks prospects for downtown office space waterfront development. Lakefront › corporate finance that set off a boom in the town,” Mr. projects would give him more am- › litigation consulting Smith said. munition to silence the critics. ■ › management consulting and strategy › turnarounds, workouts, and restructuring Volume 33, Number 30 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- SS&G Parkland: innovative expertise under one roof. bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, Learn more at www.SSandG.com/Parkland. OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877- 824-9373.

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AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Insurer Family Heritage Life to sell for $218 million state’s insurance regulations would “There are markets that Phone messages and an email Broadview Heights firm says publicly have required Family Heritage to to a Torchmark official were not incur a considerable expense, the we don’t currently have returned by Crain’s deadline last traded Torchmark can open new markets company’s leaders believed, so access to (and) Torch- Friday, Aug. 3. However, in a news Torchmark’s experience there will mark operates in both release announcing the acquisition, By MICHELLE PARK “We have a lot of growth opportu- be beneficial, he said. those markets.” Torchmark’s co-CEOs were quoted [email protected] nities in the markets that we serve, Torchmark’s other subsidiaries as saying that the transaction meets and we’ll continue to focus on operate independently, and the – Douglas Kelly, vice president the criteria they established several A Broadview Heights insurance those,” he said. “But there are markets company has told Family Heritage of marketing, Family Heritage years ago for acquisitions. company has agreed to be acquired that we don’t currently have access leaders to expect to do the same, Life Insurance “Family Heritage offers protection- for $218.5 million in a deal its local to (and) Torchmark operates in both Mr. Kelly said. Family Heritage’s oriented insurance to middle-income leaders expect will position the com- of those markets and should be able name and headquarters will stay, he people as it grows, Mr. Kelly said, “I families through a captive agency pany to expand sales into Canada to assist us in navigating our way said, and Torchmark is “anxious to wouldn’t expect a huge balloon of force that we believe we can help and its 50th state: New York. into those markets.” retain all of the employees and all of employment.” grow,” the release said. “The company Publicly traded Torchmark Corp.’s Both New York state and Canada the agents.” “We’ve managed to keep our has a track record of solid premium acquisition of Family Heritage Life are attractive because they offer Moving forward, Family Heritage employment growth lower than our growth and strong underwriting Insurance Co. of America is expected small town and rural markets, the may begin selling Torchmark prod- revenue growth through process margins with a business plan that to close in the fourth quarter. Founded types Family Heritage tends to serve, ucts, and vice versa, Mr. Kelly said. improvement and automation,” he incorporates a variable-cost marketing in 1989, Family Heritage employs Mr. Kelly said. Navigating New York While the company will add said. structure.” ■ slightly more than 100 people and is on track to do more than $200 million in revenue this year. Its acquisition was initiated because Family Heritage’s original parent company, Southwestern/Great Amer- ican Inc. of Nashville, Tenn., wanted liquidity and because Family Her- itage wanted a parent company that could support its growth aspirations, said Douglas Kelly, vice president of marketing for Family Heritage. McKinney, Texas-based Torch- mark appears to be a good fit, Mr. Kelly said, because it offers insurance products similar to those of Family Heritage and has strong credit ratings and multiple distribution channels. Family Heritage sells life insurance A. B. and supplemental health insurance, which is designed to help families cover indirect expenses of a major CAN YOUR BANK medical issue, including lost wages and transportation to medical care, SPOT THE DIFFERENCE? Mr. Kelly said. Its products are sold by 1,200 captive sales agents around the country, and it has more than 225,000 policies in force. Picture A represents a home improvement “We see a lot of benefits to the retailer, picture B a garden center. marriage,” Mr. Kelly said of the acquisition. Each has its own challenges and banking needs. Just like your business. HEALTH CARE DIRECTORY So why treat them the same? Crain’s Cleveland Business on At Fifth Third Bank, we look – and think – harder. Sept. 17 will publish its 15th Health Care Directory, a listing of compa- Because we’re curious to ﬁnd the right ideas to nies and organizations that provide help you run your business better. health care services in Northeast Ohio. Go to www.crainscleveland.com/ Ideas that enable you to collect payments section/hcd to view the Health Care on-site or online. Or solutions that may Directory. If your company or organization turn cash into working capital, fast. has never submitted information for the directory, send an email It’s an approach that’s as different as, requesting a survey to Deb Hillyer at say, an adjustable wrench and a [email protected]. The email must include company name, address, Lycoris squamigera. phone number and a contact name. Incomplete requests will not receive And you’ll ﬁnd it at Fifth Third Bank. a response. The deadline to submit a survey is Aug. 22. The directory will be divided into Learn more at 53.com/BusinessIdeas 20 categories: addiction services; associations and professional groups; biotechnology; dentists and dental groups; fitness and wellness; health insurance underwriters (only The curious bank. those companies listed as Health Insuring Corporations by the state of Ohio); home health; hospice; hospitals and hospital systems; laboratories; medical equipment and imaging; mental health; occupational health/occupational therapy; outpa- tient services; pharmaceuticals; physical therapy/rehabilitation; physicians and physician groups; Deposit and credit products provided through Fifth Third Bank. Member FDIC. Equal Housing Lender. © Fifth Third Bank 2012. prescription services; senior and long-term care services; and women’s health services. 20120806-NEWS--6-NAT-CCI-CL_-- 8/3/2012 3:59 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 Geis brothers among latest bidders for Acacia

By STAN BULLARD board has not selected an offer and venture involving the Geis brothers Barry Fader, Visconsi’s senior [email protected] communicated it to its members. of Streetsboro and a separate offer vice president of business develop- 700 W. St. Clair Ave., Suite 310, Competition for the parcel has from Visconsi. Mr. Carr said those ment, declined comment. Messrs. Cleveland, OH 44113-1230 Real estate developers are playing increased since the club’s member- bids are in the $15 million to $16 Fader and Doyle declined to disclose Phone: (216) 522-1383 another round in their quest to land ship in June spurned a $12 million million range. the size of their offers for the bucolic Fax: (216) 694-4264 Acacia Country Club in Lyndhurst bid from Visconsi Cos., a Pepper A nonprofit also is in the bidding, golf course. www.crainscleveland.com as a potential development site. Pike shopping center developer. Mr. Carr said. Acacia offers a land-rich devel- Publisher/editorial director: Charles Longo, Acacia president, Though Mr. Longo wouldn’t name James Doyle, who shares an office opment opportunity in the monied, Brian D. Tucker ([email protected]) confirmed that the club has received names, Leonard Carr — Mayfield with builders Greg and Fred Geis, built-up eastern suburbs. Moreover, Editor: bids from three suitors for the 160- Heights law director and, until confirmed the trio has submitted a the 1921-vintage country club sit Mark Dodosh ([email protected]) acre property at 26899 Cedar Road. recently, an Acacia member, who bid for Acacia through Hemisphere across the street from Beachwood Managing editor: Scott Suttell ([email protected]) However, he declined to disclose sued the club over its land deals — Development Co. Mr. Doyle declined Place Mall and the Legacy Village Sections editor: the amounts of the offers or to and another source who requested to discuss the firm’s plans if it lands lifestyle center, two of the region’s Amy Ann Stoessel ([email protected]) identify bidders because the club’s anonymity said the bids include a the property. premier retail centers. ■ Assistant editor: Joel Hammond ([email protected]) Sports Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: After raising $10M, local oil and gas group bankrupt Jay Miller ([email protected]) Government By MICHELLE PARK Preferred Well Management Co. streams and almost no cash on hand,” the Securities Act. Chuck Soder ([email protected]) [email protected] “That was a more efficient way to according to the SEC’s lawsuit. That During the same period that the Technology Dan Shingler ([email protected]) administer the financial affairs of suit charges that Mr. Bodanza made later promissory notes were sold, Energy, steel and automotive A local group of oil and gas com- the companies,” Mr. May said. “We fraudulent misrepresentations and Preferred Financial Holdings suffered Tim Magaw ([email protected]) panies that raised nearly $10 million are hopeful that we can achieve sig- omissions in offering and selling through losses from its operating Health care and education from investors has filed for bank- nificant revenues to distribute to Preferred securities. subsidiaries of $1 million in 2007, Michelle Park ([email protected]) ruptcy and has consented to a the investors.” In a consent order approved by $2.2 million in 2008, $1.8 million in Finance Ginger Christ ([email protected]) judgment from the Securities and Most of the companies’ investors U.S. District Court Judge Christopher 2009 and $1.3 million in 2010, the Manufacturing, marketing and retailing Exchange Commission that requires are Northeast Ohioans, Mr. May said. A. Boyko last Tuesday, July 31, Mr. lawsuit said. Research editor: it to pay $4.5 million to the SEC. The companies will be wound down Bodanza and the companies agreed “Bodanza nonetheless depicted Deborah W. Hillyer ([email protected]) Preferred Financial Holdings to collect as much value as possible to the SEC’s final judgment without Preferred Holdings’ oil and gas Cartoonist/illustrator: Rich Williams Co. of Cuyahoga Heights, its four for their assets, which include leases admitting or denying the allegations operations in a positive light and Marketing director: subsidiaries and the companies’ on land in Tennessee, interests in of the SEC’s complaint. failed to disclose to most investors Lori Grim ([email protected]) founder and former chief financial producing wells and some equip- Mr. Bodanza, who previously that the company had suffered Marketing/Events manager: officer, Michael A. Bodanza, were ment, Mr. May said. worked as an investment adviser, is significant losses from 2007 through Christian Hendricks ([email protected]) sued by the SEC on July 27. The The SEC in its lawsuit against Pre- liable for $410,207, all but $154,000 2010,” the SEC alleged. Assistant Events Manager: Jessica Snyder ([email protected]) same day, the companies filed for ferred Financial Holdings paints a of which was waived based on his Errors of omission alleged Marketing and sales assistant : Chapter 11 protection from credi- picture of an energy exploration statement of financial condition dated Erika Patrice Singleton ([email protected]) tors in the U.S. Bankruptcy Court company that did little exploring. March 1. The Preferred Financial The lawsuit stated that Mr. Advertising sales manager: for the Northern District of Ohio. According to the suit, irreparable Holdings companies are to pay the Bodanza failed to disclose to Nicole Mastrangelo ([email protected]) The bankruptcy was filed in co- damage to the only operating SEC $4.48 million plus prejudgment investors that Preferred Financial Senior account executive: operation with and the full knowl- drilling rig owned by Preferred interest in the amount of $268,143. Holdings in early 2008 removed its Adam Mandell ([email protected]) Account executives: edge of the SEC, said Karl May, lead Drilling severed the only revenue After it collects the money, the chief operating officer, who was a Dawn Donegan ([email protected]) counsel for Mr. Bodanza and the stream the subsidiary had. SEC may propose a plan to distribute founding member of the company, Andy Hollander ([email protected]) companies, which include the Preferred Financial Holdings has the funds, subject to the court’s and sued him for causing the com- Lindsey Nordloh ([email protected]) subsidiaries: Preferred Drilling Co., about $2.5 million in assets but $7.4 approval. If the SEC determines that pany to suffer damages of $3 million Office coordinator: Preferred Financial Investment Co., million in liabilities, “very few on the money will not be distributed, to $4 million. The SEC also said the Toni Coleman ([email protected]) Preferred Financial Leasing Co. and going operations, limited income the funds would be sent to the U.S. company didn’t reveal that the only Digital strategy and development Department of the Treasury. drilling rig held by the drilling manager: subsidiary suffered an irreparable Stephen Herron ([email protected]) How it began breakdown in August 2008. Web/Print production director: THROUGH SEPTEMBERGRAND 3 According to the SEC’s lawsuit, In addition, the SEC said Mr. Bo- Craig L. Mackey ([email protected]) Preferred Financial Holdings was danza failed to disclose to at least Production assistant/video editor: OPENING Steven Bennett ([email protected]) formed in 2006 to engage in oil and three individuals who bought SAVE 15% gas exploration, drilling and leasing promissory notes in 2010 that the Graphic designer: through operating subsidiaries. Be- proceeds would be used to make Lauren M. Rafferty ([email protected]) tween November 2006 and June payments to other investors. Billing: 2007, Mr. Bodanza sold $1.4 million Preferred Financial Holdings has Susan Jaranowski, 313-446-6024 ([email protected]) RD in equity membership units and failed to repay most of the investors Credit: $1.79 million in promissory notes to whose promissory notes have come Todd Masura, 313-446-6097 25 different investors, the suit said. due and is unable to pay the re- ([email protected]) Almost immediately after the maining investors, the lawsuit said. Crain Communications Inc. completion of the initial offering, The company has paid only $2.3 Preferred Financial Holdings faced million in principal and interest to Keith E. Crain: Chairman a cash shortage, the lawsuit said, and the later note investors. Rance Crain: President without consulting outside advisers, Also according to the suit, Pre- Merrilee Crain: Secretary Mr. Bodanza decided to sell promis- ferred Holdings in February 2011 Mary Kay Crain: Treasurer sory notes similar to those sold during sent investors a “status report” that William A. Morrow: Executive vice president/operations the initial offering. mentioned some of its setbacks and Brian D. Tucker: Vice president Between June 2007 and August problems and disclosed that the Robert C. Adams: NEW STORE NOW OPEN AT 2010, Mr. Bodanza raised at least company needed to pursue addi- Group vice president $6.76 million from at least 61 in- tional sources of financing in order technology, circulation, manufacturing vestors through the sale of unregis- to continue operations. It also dis- Paul Dalpiaz: Chief Information Officer ETON-CHAGRIN SHOPPING CENTER tered promissory notes, according closed the existence of an SEC in- Dave Kamis: to the suit, which also noted that vestigation and Mr. Bodanza’s res- Vice president/production & manufacturing 28699 CHAGRIN BOULEVARD most of the later investors did not ignation as CFO pending resolution G.D. Crain Jr. qualify as accredited investors under of the investigation. ■ Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)

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AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Area companies warily watch Europe as manufacturing slows

to further its research-and-develop- CEO of RPM, said in a July 23 earnings Those with customers there adjust terms, look to healthier economies ment efforts. conference call. So far, Mr. Gingo said, the problems “We are beginning to see declines By GINGER CHRIST continued business. in countries outside of the euro A. Schulman is seeing in Europe in sales and earnings across some [email protected] The company is working with zone, namely in South America. Mr. “have yet to translate into the Amer- of our European operations,” Mr. European customers on cash flow Schauer said there is opportunity icas or into Asia.” But that doesn’t Sullivan said. “This is compounded Northeast Ohio manufacturers issues and even is taking on some for growth in places such as Venezuela, mean they could not. by the continuing deterioration of are feeling ripple effects from financial risk in providing product where the company already does “Are we worried? Yes, of course the euro versus the U.S. dollar.” economic troubles in Europe, woes months before anticipated delivery limited business. we are,” Mr. Gingo said. However, RPM’s presence largely that appear to be contributing to an and payment dates, said Robert in northern Europe and not the overall slowdown in the U.S. man- Schauer, PMI president. That way, Worried? Of course It’s a small world more volatile southern countries, ufacturing sector. customers that don’t have cash For A. Schulman Inc., an Akron- The impact of the euro zone on such as Greece, has proven to be an Although the sector still is in upfront still can receive their orders based supplier of plastics resins, the local manufacturing isn’t isolated to advantage, Russell Gordon, chief expansion mode, growth in U.S. in time for use on their ships. European slowdown has meant a one or two companies. financial officer and vice president manufacturing slowed in June to its Mr. Schauer said such greater reliance on Ameri- In their most recent quarterly of RPM, said in the earnings confer- weakest rate in 37 months, according flexibility is invaluable in the can and Asian markets. earnings reports, both RPM ence call. to the JPMorgan Global Manufac- underwater cable industry, A. Schulman typically International Inc. and turing Purchasing Manufacturing which has a seasonal win- generates two-thirds of its Eaton Corp. identified the ‘A little more stagnant’ Index. dow for monitoring. sales in Europe. European slowdown as a William Gaskin, president The index — a survey of 10,000 Those efforts, coupled “Europe is slow,” said contributor to weaker sales. of the Precision Metal- purchasing executives — also with cutting costs, are de- Joseph Gingo, CEO and “The big theme here is, forming Association, a trade showed that global manufacturing signed to show customers president of A. Schulman. ‘U.S. market stays strong.’ association in Independence, hit a three-year low and contracted value and earn their con- “It’s affecting manufactur- Non-U.S. markets, not much said economic activity in for the first time since last November. tinued business through, Gingo ing. It’s affecting many of a recovery expected this his industry has slowed but Cutler It’s a slowdown largely attributed to and hopefully after, the things.” year,” Alexander “Sandy” isn’t a concern. weakness in the euro zone. European economic slowdown. A. Schulman’s sales during the Cutler, Eaton chairman and CEO, “Last year, we were still kind of in Local companies with customers “You have to be a little bit nimble third quarter, which ended May 31, said in a July 23 earnings conference growth mode. This year, it’s a little in the troubled European market and agile. You have to be much fell 6.8% from the comparable call. more stagnant,” Mr. Gaskin said. say they have been forced to look more forward-thinking,” Mr. Schauer quarter in 2011. The company While Eaton’s net income in the PMA’s July Business Conditions to other geographic areas for prof- said. attributed the decline to a 7% second quarter rose 14% from a Report, a survey of 129 metalforming itability. Even so, PMI’s global business decrease in unit volume and $23.5 year earlier, its sales slipped 0.5%. companies, showed mixed results. PMI Industries Inc., a Cleveland- sales are down 20% from its tradi- million in negative effects of foreign “The uncertainty in Europe, as While 19% of participants (up from based manufacturer of underwater tional levels, a decline that started currency translation. well as slower economic growth 11% in June) said they expected cable assemblies for seismic vessels, last October. “Fortunately, we’re not in southern rates in China, India and Brazil, economic activity to improve in the sends on average two-thirds of its Apart from devoting more atten- Europe. We’re in northern Europe. resulted in weakness in a number of next three months, 36% (up from 32% goods overseas. It doesn’t have any tion to its European customers, PMI We’re in the strongest parts of a our end markets,” Mr. Cutler noted in June) believed activity would fall. customers in Ohio; its closest U.S. also is shoring up its sales with weak Europe,” Mr. Gingo said. in Eaton’s second-quarter earnings Likewise, 26% of companies (down client is in Pittsburgh. increased business with the U.S. The company mostly operates in release. from 31% in June) expected to see Thus, to keep sales afloat, PMI Navy. northern European countries such At RPM, European sales represent an increase in orders in the coming has become more flexible with Other plans for drumming up as Germany, where in June it even about 20% of the company’s total months, while 34% anticipated a European customers to secure their sales involve looking for customers opened a global innovation center sales, Frank Sullivan, chairman and decrease (up from 33% in June). ■

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 Cloud support demand fuels Paragrid GOING PLACES JOB CHANGES IT outfit hiring regional “Paragrid has always been there for us when we needed them day or night.” ARCHITECTURE salespeople, seeking KA ARCHITECTURE: Robert A. – Jason Church, chief information officer, NRP Group LLC Weeks to vice president, business more space in Cleveland development. don’t start pedaling fast enough, it’s Paragrid in June moved into By CHUCK SODER just going to go right underneath 2,000 square feet of temporary CONSTRUCTION [email protected] you,” he said. office space on Rockside Road in Weeks Laird Lipinski GILBANE BUILDING CO.: Thomas Paragrid over the past six months Independence because staying in its Laird to executive vice president. Ryan Berg said he and his col- has pushed to build its sales team. previous location, a 6,500-square- leagues at Paragrid Inc. have decided The company since then has hired foot office in Tyler Village, in Cleve- to “quit being wusses.” five sales people focused on the land’s Midtown neighborhood, EDUCATION The company, Cleveland, Columbus, Cincinnati, would have meant extending its sub- KENT STATE UNIVERSITY: Tomas which provides Chicago and Detroit areas, Mr. lease by three years. The company A. Lipinski to director, School of data hosting ser- Berg said, though Paragrid is in the now is looking for roughly 7,000 to Library and Information Science. vices and helps process of replacing two of the 8,000 square feet in Midtown or NORTHEAST OHIO MEDICAL companies set recent hires. One quit and one was downtown Cleveland, with the option UNIVERSITY: Charles T. Taylor to Taylor Dussault Matthews up their desktop fired for performance issues, he of expanding further. dean, College of Pharmacy. computer systems said, acknowledging the challenge Paragrid has helped real estate so that almost all that comes with hiring and managing services firm NRP Group LLC of FINANCIAL SERVICE computing func- remote employees. Garfield Heights cut its data storage Berg tions take place Mr. Berg said he expects 2012 costs by updating the company’s GREAT LAKES FINANCIAL GROUP: in a data center, sales to exceed $5 million, which data storage network, said Jason Chad Nykiel to financial analyst. has more than doubled the size of its would be a significant increase over Church, chief information officer NORTH POINT PORTFOLIO staff since early 2011 and is looking last year’s sales, which he would not for NRP Group. Paragrid also MANAGERS: Lisa Kwiecien to to double again over the next year. disclose. Paragrid has been prof- helped NRP convert more than 200 portfolio assistant. Paragrid, which employs 22, has itable since it was founded in 2009, personal computers into virtual PRICE FOR PROFIT: Ben Dussault Myers Megerian Krieger expanded quickly to take advantage Mr. Berg said, but the company has desktops, which has let the company to associate; Carol Matthews to of the growing demand for desktop had an easier time of late attracting manage the machines from afar, administrative coordinator. virtualization and cloud computing customers, who now sometimes said Mr. Church, who praised Para- PWC: Gregg Muresan and Michael services, which is a term for services call Paragrid before the company grid’s service. Olecki to tax partners; Michael Pratt delivered via the Internet, said Mr. calls them. “Paragrid has always been there and James Will to assurance partners; Berg, Paragrid’s president. “We finally said, ‘You know, this for us when we needed them day or Jeff Briner to advisory principal. “It’s like a surfer on a wave. If you is working,’” he said. night,” he said. ■ SS&G: Tony Rispoli to director, business development. WELLS FARGO ADVISORS: Ryan Angell Kim Baer Myers to financial adviser. WESTERN RESERVE PARTNERS: Kuzmick to assistant editor, Motorcycle Andrew C. Foster to analyst. & Powersports News, and associate editor, BodyShop Business. HEALTH CARE NONPROFIT CASE WESTERN RESERVE UNI- VERSITY SCHOOL OF MEDICINE HANNA PERKINS CENTER FOR AND UNIVERSITY HOSPITALS CHILD DEVELOPMENT: Karen CASE MEDICAL CENTER: Dr. Cliff Baer to CEO. A. Megerian to chairman, Department LEGAL AID SOCIETY OF CLEVE- of Otolaryngology. LAND: Kari White to supervising SOUTHWEST GENERAL HEALTH attorney for intake and the Volunteer CENTER: Richard W. Kondas to Lawyers Program; Mary Beth Mc- clinical manager, Urgicare Centers. Conville to senior attorney for intake and the Volunteer Lawyers Program; INSURANCE Megan Sprecher to senior attorney and project leader, Community Advo- CHICAGO TITLE INSURANCE CO.: cacy Program. Adair Krieger to national commercial service coordinator. STAFFING MEDICAL MUTUAL: Tom Dewey to PRINCETONONE: Kalee Vectirelis director, financial analysis and cost to recruiting coordinator and and budget. researcher. LOGISTICS TECHNOLOGY JARRETT LOGISTICS SYSTEMS BRITESKIES: Larry Jansen to INC.: Matt Angell to vice president, iSeries senior developer; Heather logistics operations. Maryo to senior solutions manager; Prathyusha Takkillapati to junior MANUFACTURING WebSphere commerce developer. EATON CORP.: Jen Molnar to director, Eaton Business Excellence BOARDS Assessment Program; Chuck Jenkins to corporate director of safety. WILLIAM K. THOMAS INN OF G.W. BECKER INC.: Art Goforth to COURT, A CLEVELAND CHAPTER regional sales manager. OF THE AMERICAN INNS OF COURT: Philip S. Kushner (Kushner MOEN INC.: Ji Kim to director, global & Hamed LPA) to president; Avery design. Friedman to president-elect; Colleen SAMUEL, SON & CO.: Rick Snyder A. Mountcastle to secretary treasurer; to vice president and general manager, Adam Fried and Tariq M. Naeem to USA Pickling Operations. membership chairs; Sandhya Gupta and Adrienne Kirshner to program MARKETING chairs; Marlon A. Primes and Greg AKHIA: Chris Jackson to creative Scott to members-at-large; Christine director; Nick Pfahler to senior art T. McMonagle to counselor; Joan director; Linda Fantone and Matt Synenberg to past president. Rumer to art directors; Isabelle WIRE-NET: Mark Dawson (Cleveland Jones to copywriter and concept Steel Tool Co.) to chairman; Tim developer; Brianna Kelly to designer; Rosengarten to vice chairman; Larry Niki Forner to associate art director. Fulton to secretary/treasurer.

MEDIA Send information for Going Places to BABCOX MEDIA INC.: Gina [email protected]. 20120806-NEWS--9-NAT-CCI-CL_-- 8/2/2012 4:24 PM Page 1

AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Ulmer software aids bill collection; other firms buy in

By MICHELLE PARK round up past-due revenues, but it’s collections by the average length of a client’s balance outstanding has 75-lawyer Brownlee firm. “Maybe, [email protected] reeling in a new revenue stream for time it takes for the firm to collect exceeded $10,000 and more than 60 sometimes, they just trust the the law firm, too. cash owed it. In October 2009, the days past due, Mr. Shipley said. client’s going to come up with the If your attorney seems more “Back starting in 2009, firms were average was 92 days. By Dec. 31 of That’s customizable, though, he noted. money. Then, two months turns aware of that hefty balance you owe really having problems with cash the same year, the period decreased “We don’t want to pester into four months, and four months his firm each time you call, you flow because clients weren’t paying to 86 days, and by year-end 2010, it clients,” he said. turns into a year. So this program might thank — though that may not their bills,” said Sam Shipley, Ulmer dropped to 76. At year-end 2011, it Ulmer & Berne in December can refresh their memory. Hopefully, be your word — Ulmer & Berne LLP. & Berne’s chief information officer. stood at 64, where it remains. 2010 incorporated a subsidiary called we can bring in the money that we The Cleveland-based law firm To address the problem, Ulmer & That steady progression means Bridgeview Technologies to sell the lost (wrote off) in the past.” developed and now is selling to its Berne’s information technology the firm has carved a whole month software. Cole Valley Software, an Mr. Shipley declined to say how brethren a patent-pending software team developed the Client Relation- off its collections cycle, which af- Idaho company and vendor of Ulmer much Ulmer & Berne charges for that displays on an attorney’s ship Console and introduced it fords it more cash on hand to finance & Berne, is selling it on its behalf. the technology, but Mr. Moss called computer screen a small pop-up of internally in November 2009. The growth and to pay its own bills, Mr. The patent for the technology the price “reasonable.” He said his client information — including aim was to prompt attorneys to Shipley said. was filed in 2010, and Ulmer & firm invested less than $10,000, but past-due amounts — when a client address more frequently debts owed “Our firm has met budget goals Berne began marketing it to other expects to collect hundreds of calls. It even pops up with the data during client-initiated calls. for three years in a row,” he noted. firms in 2011. thousands of dollars it might not before the second ring. “The attorney won’t pick up the Brownlee LLP, a Canadian law have before. Conceived to improve Ulmer & phone and make the obnoxious Selective memory firm, bought the system a few Today, the technology’s pop-ups Berne’s own account collection rates, collections phone call … because Ulmer & Berne’s technology does months ago and is integrating it only appear when money is owed. the technology — called Client what’s important for them is man- not present information to attorneys with its phone system. But Ulmer & Berne plans by the Relationship Console — has proven aging that relationship so they will all the time: If there isn’t relevant “The lawyers are so caught up fourth quarter to add the capability compelling to six other firms that get follow-up work,” Mr. Shipley said. information or action that needs to doing their own work that they that, among other things, can alert have paid Ulmer & Berne for its use The numbers show the technology be taken, no pop-up appears. Plus, don’t really pay attention to their attorneys to cross-selling opportu- and installation. So, not only is the is working, Mr. Shipley said. accounts receivable data for Ulmer accounts receivable,” said Stephen nities or to court rulings they should technology helping Ulmer & Berne Ulmer & Berne measures its & Berne lawyers only pops up after J. Moss, system administrator of the share with certain clients. ■

— he even finds some validation in it. The American Gas Association, not is focused on the right challenges at “Having Eaton get in the business known for encouraging govern- the right time,” AGA president and Fuel: Market for natural is just one more piece of recogni- ment involvement in business mat- CEO Dave McCurdy said. “Their tion that natural gas is the way the ters generally, applauded the recent leadership can motivate the kind of (auto) industry is going to go,” Mr. round of ARPA-E expenditures that game-changing innovations that gas cars still in neutral Moore said. included the Eaton grant. will help us displace foreign oil with The gas industry hopes that’s true. “The new ARPA-E MOVE program clean, domestic natural gas.” ■ continued from PAGE 3 the refueling system is perfected, two-wheeled adventures. Eaton likely will invest more money What Mr. Moore does have is a to bring the system to production — head start. For three years he’s been but it also will be gaining valuable working to develop a home refueling intellectual property along the way, station at a price point accessible to Mr. Herbst predicts. That know-how consumers — something less than might come in handy if the natural the roughly $5,000 that current gas vehicle business grows the way models cost. Most of that work has many observers expect and the way been through his Cleveland company, the gas industry and the govern- NatGasCar. ment hopes. “The whole purpose behind this Pressure-packed challenge is to develop that intellectual prop- The holy grail for both Eaton and erty,” Mr. Herbst said. NatGasCar is the creation of a small Mr. Moore is also confident. unit, about the size of a large back- Eaton’s $500 price point is lower pack and weighing less than 50 than what he’d been aiming for so pounds, that can hang on a garage far, but he’s also working on a time- wall and can be connected to a home line that would bring his product to gas line. Essentially a compressor, market ahead of Eaton, he said. it’s job would be to take the low Eaton and Mr. Moore say the pressure gas provided by a home gas refueling systems must be safe, reli- line and compress it to a few thou- able, quiet and easy to use and that sand pounds of pressure per square there are technological hurdles yet inch (PSI) so that it could be injected to clear for both development groups. into a vehicle powered by natural gas. “I think we’re a ways away still,” Both Eaton and Mr. Moore are Mr. Moore said. “But I’d like to think convinced that the market for that we’re closer than they are.” natural gas vehicles is set to take off. Mr. Moore is no stranger to prod- So far, it barely has scratched the uct development. A longtime entre- surface, Mr. Herbst said, accounting preneur in traditional industries, for only 13 million vehicles world- such as automotive supply, he more wide and about 120,000 in the United recently has become known for States, with most of those in com- developing products such as better mercial fleets rather than in resi- helmets for athletes and soldiers dential garages. and better armor for U.S. military The energy and automotive vehicles. He isn’t afraid to get his industries face a classic chicken- hands dirty, or blow things up, to and-egg dilemma. Without easy access get a product to market. to fuel, consumers are not likely to On the other hand, Mr. Moore demand natural gas cars and said he realizes Eaton is in a whole automakers aren’t excited about other dimension in terms of size producing them. Likewise, without and resources, and that he’d be large numbers of natural gas vehi- foolish not to respect a company with cles on the road, retail fueling sta- the technological abilities of Eaton. tions aren’t likely to be built. “Eaton’s a very strong company But, with cars able to run on nat- and a very big company — run by a ural gas for half the cost of gasoline very good person (CEO Alexander or less, most observers think the Cutler), and I have a lot of respect henhouse will explode if the problem for them,” Mr. Moore said. can be solved. So Mr. Moore and “But I also have a lot of respect for Eaton both hope to design and build what we’re doing,” he said. the first chickens to get things going. Goliath gives affirmation The race is on So far, Mr. Moore isn’t being out- Eaton is putting staff from its spent. He already has invested more Innovation Center in Southfield, than the $3.4 million Eaton is Mich., as well as its advanced receiving as a grant, he said. hydraulics team from Minnesota on And as for battling Goliath, Mr. the project, Mr. Herbst said. Once Moore said he’s fine with that, too 20120806-NEWS--10-NAT-CCI-CL_-- 8/2/2012 4:14 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Loss No. 1 aiju Shah not only is extremely bright, but the only CEO that BioEnterprise Corp. has ever known also has an excellent, self-dep- Brecating sense of humor. After Mr. Shah announced last month that he would be leaving BioEnterprise to run a new drug development company in Cleveland, a well-wisher who congratulated him on his new job said the nonprofit would have big shoes to fill in replacing him. Mr. Shah responded by saying he only wears a size 9. FROM THE PUBLISHER Ah, but the footprints Mr. Shah will leave behind once he exits BioEnterprise are of a guy with shoes the size of Shaquille O’Neal’s. That’s why we don’t envy the BioEnterprise board in finding someone Mad as hell? You’d better believe it who’ll lead the organization with the same purpose for the battle with the arch-conservative common ground.” and zeal as Mr. Shah. emember Howard Beale, the TV newsman in the 1976 film Tea Party faction that has infected the Rep. Marcia Fudge, the Warrensville Prior to 2000, Cleveland wasn’t in the conversation “Network” who cascaded into GOP. He reminds me of the Jeff Daniels Heights Democrat whose district sits when talk turned to cities that attract venture capital craziness with his on-air rant? character in the new HBO series, “The next to his, told our editorial board a few investment. A prime reason BioEnterprise was given RHe urged his viewers to go to their Newsroom.” Except, of course, that part months ago how much she appreciated life in mid-2002 was to help connect local, early stage windows, open them up and scream — about having women throw drinks in his lawmakers who could work with the companies that were developing medical devices and as he did more than once while pleading face. other side for common good. Last week, bioscience technologies with venture capital firms. with folks to turn off their televisions — You see, Steve LaTourette has indeed she lamented the departure of a respected Mr. Shah became the trusted intermediary who “I’m as mad as hell and I’m not been a thinking-man’s Repub- colleague from the Ohio delegation. made many of those connections happen. He was gonna take it anymore!” BRIAN lican, and has prided himself in “We need more people like Steve who That’s me. working with his colleagues are gracious and willing to reach across instrumental in putting Cleveland on the map in the TUCKER Right now. from both parties to get real the aisle,” she told The Plain Dealer last venture capital world because he introduced the And it’s because of Steve things accomplished for us. week. “I will miss his wit and ability to monied interests to promising companies they LaTourette. And now, soured by the get things done.” found to be good investments. Wait, now don’t get me wrong. parochial, narrow-minded, acer- Remember the so-called “Grand Com- Success has bred more success over the last I think highly of the soon-to- bic chaos that reigns on Capitol promise” that was being cooked up by decade. Just last week, BioEnterprise released its retire congressman from Greater Hill, he has called it quits, President Obama and House Speaker latest Midwest Health Care Venture Investment Cleveland’s far eastern commu- joining the likes of Maine’s John Boehner? The two sides would Report, which showed Midwest health care startups nities. He made a name for highly respected, longtime U.S. agree to both tax increases and entitle- Sen. Olympia Snowe and other ment reductions to help bring this received $491 million in investments in the first half himself prosecuting that crazed Mormon cult of killers, and then served moderates who despise the “never-com- nation out of its plunge into debt. of 2012 — the highest six-month total in five years. A Northeast Ohio well in the U.S. House of promise” mentality that has infected our Couldn’t do it because the Tea Party total of 33 Cleveland-area companies grabbed $83.6 Representatives for most of the past two political discourse. despises tax increases. Moderates such million of that amount, or 17% of the region’s haul. decades. He was a Republican who also “For a long time now, words like ‘com- as Steve LaTourette threw up their Only Minneapolis has topped Cleveland as a thoughtfully represented the old-line promise’ have been considered to be hands, or worse, quit. And guess who venture capital magnet in the Midwest over the last Democrats in his district. dirty words,” he said last week while gets left behind? Reasonable Americans seven years. That’s impressive, but we’d argue that He was a moderate and proud to work announcing his intention to retire. He who expect their elected officials to lead Cleveland for the foreseeable future needs a strong with the folks across the aisle to get said he always had believed strongly that us out of this mess, rather than wallow in it. ■ biotech advocate in the mold of Mr. Shah to keep things done for us. He didn’t much care “the art of being a legislator is finding I’m mad as hell. How about you? that trend going. We wish the BioEnterprise board well in choosing a new champion for the region. PERSONAL VIEW Loss No. 2 Support for anti-gay scouts is surprising teve LaTourette is part of a vanishing breed in By GINGER CASEY Ms. Casey is a journalist who lives in side them, they may even report to them. Congress — a lawmaker who doesn’t put Bratenahl. I would guess that all of these companies party affiliation ahead of common sense he decision by the Boy Scouts of and institutions have hiring and work when approaching his job. Now, the wear and America to continue their policy of awareness of the value of diversity in policies that prohibit discrimination S discrimination against gay youth their work force. ExxonMobil is also a big based on sexual orientation — yet here tear that comes with occasionally breaking party and leadership is tremendously sponsor, as is General Electric and Boeing. they are, working with and supporting ranks apparently has become too much for Rep. Tdisappointing. an organization that openly and actively Closer to home, a look online at the LaTourette, who last week announced he won’t seek National scout leadership obviously Greater Cleveland Council’s 2011 annual discriminates against gay youth. th a 10 term in the U.S. House of Representatives. decided to dig in on their policy because report reveals an astounding number of Most of these companies are also part It was Rep. LaTourette and Squire Sanders partner their coffers are full enough to withstand leaders from our community represented of the Greater Cleveland Partnership’s Fred Nance who in 2005 led the successful effort to the departure of those who oppose their on the Boy Scout council and board. diversity and inclusion initiative. This is save the Cleveland office of the Defense Finance anti-gay stance. Boldly, they are not going Senior executives from most of North- also disappointing. and Accounting Service. The collaboration and hard to change. east Ohio’s most successful public compa- What I find equally distressing is the work that were necessary to salvage the DFAS center So where is the money coming from? nies, largest banks, law firms, universities support provided by the United Way of According to the Christian Science Mon- against all odds are indicative of the traits Rep. and hospitals participate on the board Greater Cleveland, which many view as itor, Mormon churches sponsor some and support the scouts with corporate the conscience of our community. Not LaTourette brought to his job in Congress. 23% of BSA troops. AT&T is a huge sponsor, and personal money. only does it directly support the Boy Washington and Northeast Ohio will be the poorer despite having the first corporate gay All of these community leaders interact Scouts, but it allows the agency to be a for his exit. and lesbian employee resource group in with gays and lesbians on a daily basis; pass-through portal for others to support the nation, formed in 1987 to expand they supervise them, they work along- See VIEW Page 11 20120806-NEWS--11-NAT-CCI-CL_-- 8/2/2012 4:21 PM Page 1

AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 THE BIG ISSUE View: Boy Scouts often If you had the money, would you invest in the Cleveland Browns? shape youngsters’ views continued from PAGE 10 The University of Alabama was a the Scouts as well. great school back in the 1950s but In recent years, the United Way became greater when it opened its has increased its support despite doors to all Americans. Even the the fact that the Boy Scouts continue U.S. military, one of the most archaic to discriminate against the very institutions we have, finally got it at-risk youth the United Way claims right and eliminated its “don’t ask, it is trying to protect. Their website don’t tell” policy, realizing that the states that it supports the Boy Scouts services need good leaders and sol- ARTHUR BERRY JR. JORDAN GREYTAK TRISHA RAYMOND JASON WORTMAN because the group “encourages diers from all walks of life. Cleveland Parma Cleveland Cleveland youth to develop good habits and In choosing to stay behind when attitudes of good citizenship.” the country is evolving toward a I’m a football fan, a sports I actually doubt that I I would invest in what is No, I wouldn’t. I wouldn’t see the return on it. I Certainly, they do not believe that more unified America, the leader- fan and a Browns fan. would. I’d probably invest around the Cleveland discrimination is good citizenship. ship of the Boy Scouts is doing Yeah, I’d invest in it. more money into the film Browns because ... there’s wouldn’t invest in any sports team. Now that the Boy Scouts have made young Scouts a disservice. They will industry here in Cleveland just a lot of stuff that can it clear that they are not interested not be prepared for the world that because that’s a growing be built up within the com- in changing — not now, not ever — awaits them. And the companies market. munity right around maybe the United Way should and agencies that support the Boy Browns stadium. consider changing its policy before Scouts’ continued discrimination ➤➤ their next fundraising campaign. are not being honest as they try to Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. It does not take a rocket scientist have it both ways — supporting a to see how the Boy Scouts’ anti-gay group that tells gay youth they are position can lead to bullying or worse. not welcome, while at the same time Take a look at the Westboro Baptist telling the rest of us how gay-friendly Investing: Church of Kansas City, which and inclusive they are. Funds fear revenue losses conducts inflammatory anti-gay The Scouts do not have to change protests outside the funerals of if they do not want to; that’s the continued from PAGE 3 problem of their own, suddenly, they its investors because there’s more soldiers — the very soldiers who beauty of America. Divergent points making a little less than they did in vote to say, ‘OK, let’s stop.’ There knowledge among investors and fund died defending, in part, their right of view are protected under the their heyday.” could be unintended situations that sponsors of the various situations to free speech. In McConnelsville, Constitution. They are, after all, a Resilience Capital Partners in Beach- allow that to trigger, and it really that can arise, he said. Ohio, someone killed a gay man’s private organization and can make wood, which last month announced wasn’t in the best interest of the Some observers say more favor- eight horses last year, locking the their own rules. the closing in May of a $222.5 million majority of the (limited partners), able terms for investors are a lasting barn and spray-painting, “fags are However, as citizens, shareholders fund, is sharing with investors in this but it still could happen.” change. Others predict the pendu- freaks” and “burn in hell” across the and taxpayers, we can stand up and fund a greater percentage of the fees Operators of private equity funds lum eventually will swing back sides of the building before burning refuse to allow our money to go to that the portfolio companies will pay are bracing for the loss of revenues somewhere in the middle. it to the ground. supporting their policy and holding to it for buying and advising the they’re negotiating away, said a “I don’t think it’s permanent at The Boy Scouts of America claims their meetings in public schools, companies, said Bassem A. Mansour, spokesperson for one local private all,” Jones Day’s Mr. Saada said. “The to provide “the nation’s foremost libraries and recreation centers. co-CEO of the private equity firm. He equity firm, who asked not to be more demand (to invest in private youth program of character devel- We can refuse to support the com- characterized the increase as moderate. identified because the firm is raising equity), the better leverage the gen- opment and values-based leader- panies and institutions that support Linsalata Capital Partners in May- money. eral partners will ultimately have. ship training.” By keeping certain boys the Boy Scouts’ discrimination. And field Heights closed on its sixth fund “We’re being very thoughtful, trying (When) there’s more money out out, what they are really doing is we can refuse to support a United in June. According to Eric V. Bacon, to figure out where we can be more there, they can be choosier and can contributing to the dark vacuum of Way that continues to fund the co-president and senior managing efficient,” the spokesperson said. negotiate.” ignorance, encouraging young Scouts Scouts, while at the same time, director, Linsalata held steady on its The spokesperson said those effi- For that very reason, some funds to discriminate, an attitude many telling us that they care about the management fee, but is sharing ciency measures already have involved haven’t extended friendlier terms will carry into the future workplace. needs of families and children. ■ “modestly” more of the transaction and combining certain positions. at all. Mr. Saada said hugely suc- advisory fees paid to it by portfolio cessful West Coast venture capital companies. Haves and have nots funds have no shortage of in- “We’re retaining less and less for Many attribute the increased vestors vying to invest in their next ourselves,” Mr. Bacon said. popularity of investor-friendly terms funds. Thus, they still can dictate The Health Care Reform But wait, there’s more to the publication in 2009 of desired terms and charge higher manage- best practices by the Institutional ment fees. Besides sharing more of the fees Limited Partners Association, a Mr. Milanich of Case Western Challenge paid to it by its portfolio companies, trade association of investors. Reserve University agreed. Resilience Capital Partners is one of Mr. Bacon said the changes also “If you’re a really good venture, We have the team for that. a number of private equity firms are the result of the maturation of you can do whatever the hell you nationwide agreeing to an arrange- the private equity business. The want,” he said. “If you’re not a When the Supreme Court upheld the ment called the European waterfall, terms of every new fund Linsalata ‘have,’ for the most part, you’re Mr. Mansour said. has raised over more than 20 years bending over backward today just Affordable Care Act, businesses Under such arrangements, fund have been increasingly favorable to to get funded.” ■ were left with many questions. sponsors agree not to collect any returns for themselves until all the Our health care reform team is capital the fund has drawn down helping clients navigate this from its investors, plus any specified complex law. returns, have been paid. The practice STATE-OF-THE-ART CONSTSRUCTION means fund sponsors must wait longer 1261 HIGHLAND RD., MACEDONIA to receive their share of any profit. Some fund sponsors also are extending better terms to parties that invest before a fund’s first close Health Care Reform to attract early participation — Visit our website to read our Summary and view our Webcast: What does the understandable, given that the time Affordable Care Act decision mean for your business? it takes to raise a fund has doubled in the last couple years, industry insiders report. Another change giving Linsalata’s Mr. Bacon pause is that fund sponsors more often are setting lower thresh- olds at which limited partners can stop providing funds for their agreed- upon commitments. The percentage 6)$YDLOEOHIRU/HDVH &KULV+RQGOLN of “yes” votes required to approve 6)'LVWULEXWLRQ)DFLOLW\ such an action decreased in Linsalata’s FKULVKRQGOLN#RPFOHFRP &ODVV$)OH[:DUHKRXVH McDonald Hopkins LLC newest fund, meaning fewer votes 0LFKDHO-2FFKLRQHUR 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 are necessary, Mr. Bacon said. ¶¶&HLOLQJ+HLJKW PLFKDHORFFKLRQHUR#RPFOHFRP Carl J. Grassi Shawn M. Riley “I find that (trend) a little worri- 'RFNV'ULYH,QV¶[¶ President Cleveland Managing Member some,” he said. “If you got into the ¶[¶&ROXPQ6SDFLQJ situation that we were in three years (6)56SULQNOHU6\VWHP Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach ago where the entire financial situa- &DU6SDFHV7UDLOHU6SDFHV ZZZRVWHQGRUIPRUULVFRP tion was melting down … if (the mcdonaldhopkins.com investing parties) were to have a 20120806-NEWS--12-NAT-CCI-CL_-- 8/2/2012 4:24 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012

Fairview Park TAX LIENS ID: 26-4096787 Date filed: May 10, 20112 Shopping: Owners see The Internal Revenue Service filed tax ID: 34-1881664 Type: Employer’s withholding liens against the following businesses Date filed: May 8, 2012 Amount: $11,545 in the Cuyahoga County Recorder’s Type: Employer’s withholding increased tenant activity Office. The IRS files a tax lien to Amount: $17,730 Emerald Painting protect the interests of the federal & Decorating Inc. continued from PAGE 3 parking lot borders and serves a government. The lien is a public Ralph Siegenthaler Inc. th 496 E. 200 St., Euclid The rejuvenation of older centers public park on its northern side, so notice to creditors that the government 5584 Mayfield Road, Lyndhurst ID: 34-1846730 from Lakewood to Solon epitomizes even that side is part of the $3 million has a claim against a company’s ID: 34-1292394 Date filed: May 22, 2012 retail’s reawakening the best. They’re makeover. property. Liens reported here are Date filed: May 22, 2012 Type: Employer’s withholding located in heavily developed areas Mr. Levey said his firm has done $5,000 and higher. Dates listed are Type: Employer’s withholding Amount: $10,978 with well-established demographics. other acquisitions and renovations the dates the documents were filed in Amount: $17,132 First Choice Homecare Inc. They are far afield from the last in its 30-year history and has found the Recorder’s Office. Carol D Hill and Associates Inc. 601 Towpath Trail, Suite C, decade’s rush to the region’s outer that every one is unique due to its 55 Public Square, Cleveland Broadview Heights suburbs as retailers chased the location, layout and tenant mix. LIENS FILED ID: 34-1567772 ID: 34-1876809 housing boom’s new rooftops. Lakewood Plaza filled the bill for the Date filed: May 22, 2012 Merritt Medical Inc. Date filed: May 22, 2012 The makeovers show how modest firm to buy the property for $2 mil- Type: Employer’s withholding, failure 4572 Renaissance Parkway, Suite A, Type: Employer’s withholding improvements — still typically lion because of market conditions to file complete return Warrensville Heights Amount: $10,228 costing millions — may hike prof- nationally and regionally. Amount: $16,801 ID: 34-1532282 itability of older centers as owners “Land (for new centers) is hard to Date filed: May 18, 2012 Corporate Installation capture resurgent tenant interest. find and hard to interest new tenants Greenwich Partners LLC Bruce Haney, managing partner in. Financing is hard to get,” Mr. Type: Employer’s withholding, 17000 St. Clair Ave., Cleveland Specialists Co. LLC unemployment 2500 Brookpark Road, Suite 211, of the Pittsburgh-based Echo Realty Levey said. “Retail in general in ID: 27-2941122 shopping center development con- some areas is very mature and satu- Amount: $22,251 Date filed: May 24, 2012 Cleveland ID: 26-3821506 cern, said his company’s multimil- rated. But there are pockets where Type: Employer’s withholding lion-dollar redo of Solar Shopping older retail can be renovated.” Hal-Mark Associates Inc. Amount: $14,334 Date filed: May 24, 2012 ETS Travel Type: Employer’s withholding, Center, 6509 SOM Center Road, as Levey was attracted to Lakewood 9697 Brookpark Road, Parma Markiewicz Automotive LLC unemployment Solon Village reflects the times. Plaza because it’s located in the ID: 34-1770173 5081 Warrensville Center Road, Amount: $10,008 “From smaller tenants, there is middle of the densely populated Date filed: May 18, 2012 Maple Heights a reawakening of interest as the suburb at a highly visible location Type: Employer’s withholding, ID: 26-3591657 Leonardos Bridal economy improves. There is very, across from Lakewood Public Library. unemployment, corporate income Date filed: May 24, 2012 & Formal Boutique very strong appetite for new space,” Likewise, Garfield Mall attracted Amount: $19,653 Type: Employer’s withholding 19111 Detroit Road, Rocky River Mr. Haney said. “However, it’s very, Glimcher because of the strong Amount: $12,080 ID: 26-3613084 very hard to develop ground-up real demographics and access to Gar- Signature Interiors Inc. Date filed: May 8, 2012 estate for many reasons. The field Heights neighborhoods and its 13275 Strathmore Drive, MJV Asset Management Inc. Type: Employer’s withholding anchor tenants are not there. More- history as a shopping location, Valley View 3895 W. 214th St., Amount: $9,432 over, given the compression of rental Craig Polard, Glimcher leasing rates due to the overall economy, it director, said in a news release issued is hard to get deals to pencil. So, after the firm bought the center. you’ll see a lot more deals done where The distressed mall also traded at you can buy an existing center at a a mouth-watering discount. Glim- reasonable price.” cher — a different firm from pub- Echo Realty, an independent licly traded Glimcher Realty Trust of company that has several principals Columbus — paid $5.7 million June of the Giant Eagle supermarket chain 13 for a property valued at almost as part of its ownership, is under- $11 million for property tax purposes. taking the Solon project to replace a Small but significant dated, 55,000-square-foot Giant Eagle with a new, 99,000-square- Keith Hamulak, a senior associate foot store. Moreover, it will be a at CBRE Group Inc.’s Cleveland Market District store, which boasts office, said shopping center owners upscale offerings amid a design on one hand are reacting to record- with more expensive finishes. low interest rates and on the other “Giant Eagle brought this to our to a resurgence in leasing activity attention. They loved Solon and had after a four-year drought. a store that is very old and under- “Activity is significantly better,” sized for the Solon area,” Mr. Haney Mr. Hamulak said. “Tenants have said. “It so happened, the existing been coming in and kicking the tires center could be redesigned to (on new locations) for the last four YOUR BUSINESS accommodate the new store.” years. Now it looks like they are Echo Realty bought Solon Square ready to come in and execute deals IS MOVING FAST. May 8 from its long-term owner, for small- and medium-sized spaces.” Solar Center Ltd., for $7 million and He noted that stores of 100,000 began construction three days later. square feet and larger that spawned CAN YOUR PHONE AND Echo Realty will move some of its so much development action the INTERNET KEEP UP? tenants to another part of the past decade have been quiet until shopping center while it rebuilds two recent projects. one wing, and it will construct an However, a Walmart Super 11,000-square-foot building for other Center is slated for construction in tenants, Mr. Haney said. South Euclid at Oakwood Commons Get award-recognized service and 24/7 support with feature-rich Cox Business InternetSM and Cox Business “We’re able to retain more than a this year. Levey & Co. also wants to half-dozen tenants who have long- replace a Walmart now in Fairlawn VoiceManagerSM to keep your business running smoothly. We’re the only service that’s at your service. established businesses in Solon and at its own project in Copley Town- add retailers who want to get into ship in a deal fraught with neighborhood opposition. Limited-Time that market,” Mr. Haney said. A just-completed CBRE survey SPECIAL COX BUSINESS BUNDLE Right time, place, price OFFER reports retail vacancy in Northeast About 26 miles away at 15412 Ohio dropped two percentage points Detroit Ave. in Lakewood, Levey & over the last year to 10.3%. It’s a Co. of Akron is involved in a massive modest change but snaps long-term ADD BUSINESS INTERNET AND PHONE FOR re-engineering of the 1950s-vintage rising vacancies and shows the ability ONLY $69.99 PER MONTH, PLUS FREE Lakewood Plaza that CEO Larry of the region to begin absorbing Levey jokes dates to 1776. space despite empty big box spaces. INSTALLATION.* A 275-seat Quaker Steak & Lube However, the improvements are restaurant soon will occupy part of uneven. Some areas have higher a retail center that was a top Lake- vacancy than others, with Middle- “Highest Customer Satisfaction among Data Service wood hangout when it boasted a burg Heights and Rocky River at Providers for Small/Midsize Businesses” long-defunct Manners Big Boy 15%, Elyria at 16% and Bedford at restaurant. The 12-year-old Discount 24%. Activity also is concentrated at 1.866.791.2688 | coxbusiness.com/save Drug Mart in the center also is un- the utilitarian or low end of the dergoing expansion and updating. market, CBRE notes, among grocery *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 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 “This is an exciting project that stores and off-price discounters. 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 will extensively change the street- “This is nominal activity relative 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. scape,” Mr. Levey said, noting up- to what we have experienced histor- 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- dates to the exterior of the property ically. A few of these should have encesmay vary. Visit jdpower.com. will constitute a “360-degree reno- been done years ago,” Mr. Hamulak vation.” He’s not kidding: The center’s said. “But it’s happening.” ■ 20120806-NEWS--13-NAT-CCI-CL_-- 8/2/2012 4:13 PM Page 1

From training programs and employee human resources, Invacare Corp.; Tom human resources. (See story below.) engagement to health care and wellness Tomasula, HR partner, Engineered Judges for the Lifetime Achievement benefits, today’s human resources pro- Polymers and LifeScience Polymers, Award were 2011 recipients of Archer fessionals must be masters at navigating Lubrizol Corp.; Stephen Malia, retired Awards: Michelle Meers, director of all levels and nuances of the work force. senior vice president and chief human human resources, PlayhouseSquare; For the second year, Crain’s Cleveland resources officer, Owens-Illinois; Regi- Zachary Simon, director of global exec- Business is honoring with its Archer Awards nald Stover, vice president, people and utive talent acquisition, Eaton Corp.; the work of Northeast Ohio’s HR experts. talent development, Fairmount Miner- Christopher Mauer, executive vice In all, 18 finalists were selected, with als; and Tim Alberts, vice president of president and director of human judges taking into consideration a human resources, Kaiser Permanente. resources, FirstMerit Bank; and Bill variety of qualities, including leadership, Winners will be announced at an Busby, vice president of sales and best practices, achievements and com- event from 5:30 p.m. to 8:30 p.m. Aug. marketing and former vice president of munity involvement. 14 at the InterContinental Hotel, HR, US Endoscopy. Judges were Sandi Guy, divisional Cleveland. For information about the Archer director of human resources, CBiz; Phil Also at the event, a Lifetime Achieve- Awards event and to purchase tickets, Goldstein, vice president, human re- ment Award will be presented to go to www.CrainsCleveland.com/ sources, American Greetings Corp.; Pa- Thomas E. Hopkins, The Sherwin- archertix or contact Erika Singleton at tricia Stumpp, senior vice president, Williams Co. senior vice president of 216-771-5371 or [email protected].

LIFETIME ACHIEVEMENT AWARD FINALISTS Thomas E. “He’s as good with the board of directors as he is with Jacquelyn Bell with college professors and accounting the people out in the field.” departments. Doing so not only has Hopkins helped guide students to Ciuni & – Nancy Rodeno, vice president of organizational effectiveness, Human resources coordinator Panichi, but it also has allowed the Senior vice president The Sherwin-Williams Co. company to weigh in on the cur- CIUNI & PANICHI INC. riculum at those schools in an effort of human resources counselor, Mr. Hopkins began as company will be our management to better prepare students, the an intern with Sherwin-Williams, training program, which he really FROM THE NOMINATION: Anthony nomination said. THE SHERWIN-WILLIAMS CO. where he has gone on to spend was the father of,” said Christo- Constantine can appreciate Jacquelyn For existing employees, Ms. Bell his entire career in human pher Connor, chairman and CEO Bell’s professionalism, having gone implemented the company’s well- right, compassionate, ca- resources. of Sherwin-Williams. “It’s really through her employee intake ness program, family events and a pable. Trusted, respected, “He makes the investment to created the leadership that runs the process. dining program for employees who humble. really get to know and connect company today. ... Mr. Constan- work late. Such efforts have helped Those are all words with people,” said Ms. Rodeno, “Tom made working in a paint tine, who is increase the tenure of the average Bused by Nancy Rodeno, vice who also noted Mr. Hopkins’ work store a job that required a college senior manager Ciuni & Panichi employee by more president of organizational effec- for the human resources profes- education, and it’s really differen- at accounting firm than 30%, the nomination said. tiveness, The Sherwin-Williams sion as a whole. “He’s as good with tiated our company dramatically Ciuni & Panichi She’s a fan of teamwork: Ms. Bell Co., to describe the board of directors as he is with from our competitors.” in Beachwood, often will put teams together to her boss and the people out in the field.” It’s an accomplishment of said as part of manage big tasks. She helps guide friend, Thomas Indeed, Mr. Hopkins has been which Mr. Hopkins is proud; he the nomination them through the process but allows E. Hopkins. helping to lead work force devel- even points to the company’s chief that Ms. Bell is the them to make their own decisions. Mr. Hopkins, opment, training and diversity operating officer, John G. Morikis, most impressive human resources Ms. Bell also has a good rapport senior vice presi- efforts at the 38,000-employee as one of those who started out in professional with whom he has with a lot of people at the company, dent of human Cleveland-based paint maker for the training program. worked. which has helped her play key roles resources at the past 31 years. Still, he is not apt to take full “Jacki treats everyone with respect in several initiatives. For instance, Sherwin- One of Mr. Hopkins’ most no- credit for the culture and compa- and makes them feel welcome,” she did a lot to get people energized Williams, is the table initiatives is the company’s ny that Sherwin-Williams is Mr. Constantine stated in the nomi- about an effort to improve the “soft recipient of this year’s Lifetime management training program, today. nation. “She is a wonderful ambas- skills” of company employees, the Achievement Award, selected for which recruits college graduates He points to those around him, sador for the firm and a true leader.” nomination said. the honor by a panel of 2011 and actively works to create a especially other members of the In nearly six years with Ciuni & “Jacki’s unique personality Archer Awards winners. talent pipeline. executive team, including Mr. Panichi, Ms. Bell has done a lot to makes her a good bridge between “This is a guy with an incredibly It’s a model that has been Connor, who he has known for ensure that the company hires management and staff,” the nomi- good heart,” said Ms. Rodeno, who expanded throughout the compa- years. good employees and that they are nation said. was hired by Mr. Hopkins. “A great ny, building in part off the idea “We are a very relationship- healthy, productive and happy, She’s involved in the Boys and blend of intellectual and emotion- that running a paint store is a intense organization,” Mr. according to the nomination. Girls Club, the Society for Human al intelligence.” course in running a business. Hopkins said. “We’re not a plug- On the recruiting side, she has Resources and the Solon and After first working as a juvenile “Tom’s incredible legacy for the and-play organization.” worked to build close relationships Beachwood chambers of commerce. 20120806-NEWS--14-NAT-CCI-CL_-- 8/2/2012 1:57 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS ARCHER AWARDS AUGUST 6 - 12, 2012

Suzanne “(She is) one of three Kathy Braun leaders who pulled Bloomfield together our entire shift Human resources manager Human resources/ in culture and relations PROFORMA equal opportunity director management.” – K. Michael Benz, retired FROM THE NOMINATION: Kathy UNITED WAY OF GREATER CLEVELAND president and CEO, United Way Braun is charged with an unenviable of Greater Cleveland task: making sure employees at FROM THE NOMINATION: It’s 750 independent Proforma offices easy to see what Suzanne Bloomfield colleagues and outside HR profes- nationwide — a nearly 50% values in an employee. sionals to develop a customer increase in employees since her She likes relations management program arrival at the company five years ethical people. designed to help employees ago — all are representing the Inde- Technical people. improve how they engage with pendence company in the same People who can donors, volunteers and other people professional manner. communicate, connected to the United Way. Proforma franchisees offer graphic build relation- In addition to her human resources communication solutions through ships and solve duties, Ms. Bloomfield also manages commercial printing, promotional problems. She the insurance plan that the United products and other services. likes people who Way offers to qualified nonprofits The company “demands a talented focus on serving in Greater Cleveland. She’s working customers and achieving goals, with a consultant and the plan’s both long and short term. vendors to develop wellness initia- Those are the seven core compe- tives designed for employees of Charmaine Brown tencies by which new hires and those nonprofits. existing employees are judged at In a letter attached to the nomi- Director of diversity the United Way of Greater Cleve- nation, K. Michael Benz, who until and inclusion land. recently was president and CEO of The core competency system — the United Way of Greater Cleve- FOREST CITY ENTERPRISES which has been adopted by other land, stated that Ms. Bloomfield United Way organizations, too — has done a lot to make sure the FROM THE NOMINATION: Char- isn’t the only initiative she’s taken nonprofit is more intensely focused maine Brown’s role at real estate on since becoming director of on its customers and its donors. developer Forest City, the 15th- human resources for the local orga- He described her as “one of three largest public nization. leaders who pulled together our company in Ms. Bloomfield also worked with entire shift in culture and relations Northeast Ohio, management.” according to Outside of work, Ms. Bloomfield Crain’s research, teaches a class at Cleveland State has led to University designed to help human numerous new resources professionals win “Pro- initiatives at the fessional in Human Resources” company. certification from the Society for For the first Human Resource Management. time, Forest City has a diversity She also serves on the board of component to its formal strategic ERC, a human resources services plan, with Ms. Brown, after com- organization in Mayfield Village. missioning consultant help from Her input on the board is highly Diversity Inc., implementing diver- valued, according to ERC president sity metrics and initiatives that have Pat Perry. been embraced by the company’s “She is well respected by her top leaders. peers as knowledgeable, ethical and “She is a sought-after confidant extremely hard working,” he said in on a variety of issues from employee the nomination. concerns to leadership advice, by

ment System was devel- Cindy Torres oped to enable partners to Essell track their attainment of the competencies, and the Associate director, HR pro is developing a new training curriculum Your true colors are seen in professional develop- for the firm based on the ment and diversity competency model. She also coordinates the your dedication to us. THOMPSON HINE LLP Partnering Committee, which is a group of non-partner lawyers FROM THE NOMINATION: Cindy from all Thompson Hine offices Torres Essell has been more than that convenes quarterly to discuss competent in making sure lawyers key issues and concerns and helps at Thompson Hine are more than the firm identify ways to address competent as they advance them. throughout the law firm. Her work in the diversity area Congratulations Tom, She led the development and enabled Thompson Hine to be on receiving an award that implementation of the firm’s recognized as an inaugural “competency model,” which recipient of the Diversity & Inclu- recognizes how much you’ve “describes the observable perfor- sion Trailblazer Award presented given all of us over the years. mance expectations of all of our by the Cleveland Metropolitan lawyers below the partner level,” Bar Association. From your colleagues at Sher- according to the nomination. The award is given to a law firm win-Williams. Before lawyers are promoted, or corporate legal department that “they must demonstrate that they “contributes to an inclusive cul- have the knowledge, values, atti- ture for its work force, with its Tom Hopkins tudes and skills required to practice clients and/or within the commu- Recipient, Archer Lifetime law competently,” the nomination nity,” the nomination said. Achievement Award stated. A major factor in receiving the Non-partner lawyers are slotted award was the associate director’s at one of three levels — associate, work in launching a partnership mid-level associate or senior asso- with Forest City Enterprises Inc. ciate — and are assigned a corre- and the Commission on Econom- sponding set of competencies to ic Inclusion that provides execu- meet before they’re considered to tives “with the information and move to the next level. tools that can help them drive With the help of the firm’s in- diversity within their own organi- house IT staff, a Learning Manage- zations.” 20120806-NEWS--15-NAT-CCI-CL_-- 8/2/2012 2:09 PM Page 1

AUGUST 6 - 12, 2012 ARCHER AWARDS CRAIN’S CLEVELAND BUSINESS 15

and dedicated staff to en- both within and among sure its franchise owners’ departments that needed needs are consistently to be broken down to ensure met,” the nomination said. smoother functioning,” “Communicating the Ms. Braun was quoted as importance of this philos- saying in the nomination. ophy begins with a poten- In addition, Ms. Braun tial employee’s first has used her talents to contact with Proforma — in spearhead Proforma’s many cases, Kathy Braun,” it said. charitable campaigns. With Proforma’s overall growth Employees have embraced the came an expansion of its human Adopt-A-Family program and have resources department, through helped provide hot breakfasts to the which Ms. Braun implemented homeless at the West Side Catholic new standards in performance Center. Ms. Braun also leads Profor- evaluation, management diversity, ma outside its local area with internal and external communica- creative drives to support the troops. tion expectations, and coaching “Energetic and always ready plans. Those efforts resulted in a with a smile, Kathy makes you 45% decrease in the company’s want to work for Proforma — and turnover rate. to perform well while working “Communication barriers existed there,” the nomination said.

everyone from line workers to Development Council, Family senior executives,” said Forest City Connections and Milestones executive vice president Andrew Autism Organization. Passen in the nomination. She also is a member of the But Ms. Brown also serves Forest United Way of Greater Cleveland’s City and the region at large in the Human Resource Advisory public arena. She has been an ad Committee and assists the Consor- hoc leader with the Greater Cleve- tium of African American Organi- land Partnership’s Commission on zations, or CAAO, an umbrella Economic Inclusion, while also consulting organization for black pushing an effort to bring C-suite professional organizations in leaders together to “identify Northeast Ohio. actionable initiatives for enhancing She has urged Forest City the business community’s employees to donate meeting commitment to diversity,” the opportunities for an annual CAAO nomination said. auction, according to William Ms. Brown, who’s been with Holdipp Jr., the manager of research Forest City for eight years, also sits and member services at CAAO. on the board of and chairs the “She is a true gem in this com- human resource committee for the munity,” he wrote in the nomina- Northern Ohio Minority Supplier tion.

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Risk. Reinsurance. Human Resources. Empower Results™ 20120806-NEWS--16-NAT-CCI-CL_-- 8/2/2012 2:00 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS ARCHER AWARDS AUGUST 6 - 12, 2012

Ohio Software Associa- munity. She chairs the and a role answering directly to the Krista Frazier tion’s Best of Tech Awards. firm’s efforts for good Amy French CEO of the provider of software Human resources specialist With respect to current works — called its Pivots Director of marketing and used by original equipment manu- associates, Mrs. Frazier Program — and spent her facturers to sell wares to the broader BRANDMUSCLE INC. selected and customized a own time promoting a human resources marketplace. learning, performance bike ride for Ronald Described as charismatic, poised FROM THE NOMINATION: Krista and succession planning McDonald House and OECONNECTION LLC and a clear communicator, Ms. Frazier epitomizes what talented management system soft- working with South Euclid French serves as the human re- human resources pros are all about: ware that helps develop schools on a drive for FROM THE NOMINATION: Amy sources director for the 240-person helping new employees acclimate emerging leaders and improve areas school supplies for needy children. French’s skills as a manager Richfield company where she has and grow productively within of weakness among new hires. All of that is quite a track record prompted her appointment to a worked for eight years. She has BrandMuscle, a Beachwood com- As BrandMuscle is quick to adopt for the University of Colorado second job as been in employee benefits for 20. pany that sells software that allows new technology, she capitalized on graduate who joined 150-person OEConnection’s Paul Johnson, OEConnection’s companies to customize marketing the “cool” factor of the system to BrandMuscle less than two years director of senior vice president for sales and materials for a local audience. garner its acceptance at the firm, ago and has been in the human marketing as service, said in a letter supporting One of her tasks was to quickly according to the nomination. She resources field for less than six. well as director Ms. French’s nomination that, create a program to greet new hires also coaches managers on employee Mrs. Frazier also has participated of human “Unlike many HR professionals, she and apprentices, called “on-boarding” reviews, and she even has launched in BrandMuscle’s outside events resources. works with us to stay focused on in human resources parlance. She a business book club at the firm to and an industry forum on behalf of “Her natural what we can do, not what we created a presentation and resource help new managers improve their the company. ability to lead” should be doing.” package for new hires dubbed the knowledge of employee matters “She represents our company in was one of many Colleagues describe the Allegheny BrandBuddy program. The intern and to hone their coaching skills. an impeccably professional way,” the reasons the nomination cited for College graduate as a guardian of variation, called Brand-Apprentice, Another of Mrs. Frazier’s tasks nomination said, “and her energy her gaining control of a second the firm’s culture, working to create won second place in the Northeast connects the company to the com- is enthusiastic and contagious.” function, which needed stability, a place where people want to work and grow. That was demonstrated last year when she partnered the OEConnec- tion management with an outside consultant to create a competency- based recruiting and retention Have You Heard? program. The effort compares the Elise Hara There’s a New Pub Scene Director of human resources in Beachwood this summer… and employment counsel CUYAHOGA COUNTY

FROM THE NOMINATION: Cuyahoga County in 2011 experienced marked change when a new government was put in place, and an experienced human resources professional was needed to make sense of the sprawling changes coming down the pike. That’s where Elise Hara fits into the equation. Prior to Ms. Hara’s hiring, not a single human resources professional on the county’s payroll was certi- fied. But believing in the value of an experienced team, Ms. Hara incen- tivized her staff with pay increases if they obtained the proper certifications. “She believes that the first step to improving morale at the county

Patty Hartmann Director of corporate learning and development Turkey Reuben MEDICAL MUTUAL OF OHIO FROM THE NOMINATION: Patty Hartmann, who has been a human resources professional for 25 years, believes in developing staff …and would you believe it’s on the Menorah Park Campus? Now residents, their family, and friends have a fun, at all levels of Medical Mutual familiar place where everybody knows their names; Pubs located at R.H. Myers Apartments and Wiggins Place. of Ohio’s 2,600- Experience a new beat in the heart of the community, where friends meet, and people gather to celebrate, employee organization. play cards or watch a game; a place to enjoy a cold frothy mug of beer and time-honored pub foods. From current If this isn’t what you expect from Senior Living, then its time to adjust your expectations. and new employees to For more information about our services (or the Turkey Reuben), call 216-831-6500. current and emerging leaders, Ms. Hartmann’s efforts have been critical to ensuring the right talents are in place to meet the company’s future business challenges. R.H. MYERS APARTMENTS | WIGGINS PLACE | STONE GARDENS | MENORAH PARK NURSING HOME | MARCUS POST-HOSPITAL REHAB CENTER “With the advent of health care 20120806-NEWS--17-NAT-CCI-CL_-- 8/2/2012 2:11 PM Page 1

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abilities of job and promotion At any given time, there and face-to-face net- The aim is to grow the program to candidates to skills the company Robert Hatta are more than 70 open working events and under- 40 to 60 mentors by year-end. decided are needed by the most Vice president of jobs at JumpStart portfolio writes HR-related costs, Outside his JumpStart role, Mr. successful of its managers. companies, and Mr. Hatta including recruiters’ fees Hatta is a board member of Global Moreover, for associates to keep entrepreneurial talent and his team use a combi- and moving expenses. Cleveland, an organization focused growing, Ms. French led the creation nation of social media and “If it comes down to a on attracting and welcoming new- of Career Development Month, JUMPSTART INC. conventional recruitment few thousand dollars that comers and boomerangers and during which workers meet with procedures to connect make the difference on connecting them economically their supervisors to determine ways FROM THE NOMINATION: With businesses and potential whether a client can hire and socially to opportunities to improve and gain promotion Robert Hatta in the driver’s seat, hires. somebody in Florida who needs throughout Greater Cleveland. potentials. startup companies with Chevy In the 2 ½ years he’s been with relocation assistance, to finding Through that position, he supports Another part of her job is over- budgets can enjoy Cadillac-quality JumpStart, Mr. Hatta and his team somebody who’s not as good in and promotes networking events. seeing community participation. human resources services. have helped place 200 employees the position but is here locally, we His other involvements have She helped coordinate the formation Mr. Hatta and his team serve as at portfolio companies. want to remove those barriers,” included acting as a judge for the of an annual computer programming HR consultants to JumpStart Inc.’s “He has taken on the challenge the nomination quoted Mr. Hatta LaunchTown Entrepreneurship contest at Baldwin Wallace Univer- portfolio companies, whose HR with gusto and has put several key as saying. Awards, an idea competition, and sity, a program that OEConnection departments “are practically programs in place … that are of Mr. Hatta also recently imple- actively promoting the first online sponsors. She also helped plan and nonexistent,” the nomination said. measurable benefit to our clients,” mented a formalized mentoring Cleveland BioMedical Job Fair, a coordinate the company’s first They solicit, screen and interview said Lynn-Ann Gries, JumpStart program that positions more than five-day, online-only event that companywide community engage- talent for free or at dramatically chief investment officer and co- 20 established individuals from drove thousands of applicants to ment program, where employees discounted rates and also teach founder, in the nomination. successful regional companies to the many tech-oriented jobs avail- donated an afternoon to local char- companies to follow best practices. His team also organizes workshops mentor earlier-stage companies. able in the region. itable programs. “Amy’s approach to leadership is simple: She provides clear direction developed that focus on That appears to be paying off: and communication as well as a Jamie “Jamie’s devotion to HR topics, such as legality Menorah Park enjoyed a low 6% (the) customer service great deal of autonomy for each Herbst and hiring, handling turnover rate among full-time staff associate to grow his/her career,” disciplinary issues and last year — “remarkable for a training and interviewing the nomination said. “She empowers Director of human trends in recruitment and senior living campus,” where the program ... marks her her team to do their job how they retention.” industry average is 40% to 50%, best see fit.” resources as a step above her Ms. Herbst also the nomination said. peers.” MENORAH PARK CENTER instituted management Reaching beyond Menorah roundtables that meet Park’s four walls, Ms. Herbst – Nomination for Jamie Herbst starts by providing professional and FOR SENIOR LIVING monthly to discuss critical man- encourages the staff to give, and expert HR support,” the nomination agement topics. As such, “the has taken a leadership role in for Rainbow program for Rainbow stated. FROM THE NOMINATION: Under managers at Menorah Park are charitable campaigns for the Babies and Children’s Hospitals. Ms. Hara also was responsible for Jamie Herbst, the focus on superb trained to treat people well,” the Jewish and general communities, She also initiated the Ohio State revamping much of the human customer service skills isn’t a one- nomination said. facilitating, for example, the Week versus Michigan food drive. resources team, with more than time hiring consideration. Rather, 30% of her 62-person staff being it’s a biweekly lesson. new hires. The new staff members, Ms. Herbst implemented 12 according to the nomination, were years ago and maintains to this day hired “because of their level of a customer service training program expertise, education and field for staff that has enabled Menorah specific certifications.” Park Center for Senior Living to Moreover, under Ms. Hara’s consistently achieve the highest leadership, the human resources customer service rankings from not team organized the county’s first only clients, but third parties as mandatory supervisory training, well. which is conducted quarterly to Every two weeks, the entire orga- ensure consistent messages and nization receives formal customer directions are delivered across the service training, for which Ms. Congratulations county’s various departments. Herbst coordinates a staff of 40 to Charmaine Brown and all the ﬁnalists “To date, the sessions have trainers and develops new lesson served as the building blocks to a plans. for The 2012 Archer Awards. unified evaluation process, clearer “Jamie’s devotion to (the) communication skills and education customer service training and inter- on the implementation of various viewing program … marks her as a policy changes,” the nomination said. step above her peers,” the nomina- Additionally, because of County tion said. Executive Ed FitzGerald’s plans to “She does not see her focus as regionalize services throughout the solely inspiring and mentoring county, he asked Ms. Hara to offer other HR professionals, but anyone her team’s services to mayors with a key position at Menorah throughout the county who don’t Park,” it continued. “There is always have the resources to hire a full- a caring component built into the time human resources staff. regular workshops that Jamie has

“Patty understands the need to help the company manage large-scale change and ensure employee engagement throughout the changing times.” – Nomination form for Patty Hartmann

reform, the need to retain current Ms. Hartmann has introduced knowledge and talent is critical programs at all levels to ensure as is the need to ensure the devel- every employee has the tools opment of new skills and behaviors needed to succeed. Some of that are necessary to compete in Ms. Hartmann’s other efforts new markets,” the nomination include developing a process for said. “Accordingly, Patty under- succession planning in order to stands the need to help the com- ensure the ongoing development pany manage large-scale change of leadership skills within the and ensure employee engagement company. throughout the changing times.” Additionally, she spearheaded As part of her efforts, Ms. Hart- the development of a new program mann designed mandatory training to identify and develop entry-level for the company’s leaders to help talent for critical business needs them understand the impact of a within the company. respectful workplace on employee Beyond Medical Mutual, Ms. engagement. This was followed Hartmann is involved with the with open training for all employees Westlake schools’ PTA program to help them understand how a and the St. Clarence Catholic www.forestcity.net respectful culture leads to a Church in North Olmsted. This positive work environment and year, she also received the YWCA company success. Women of Excellence Award. 20120806-NEWS--18-NAT-CCI-CL_-- 8/2/2012 2:34 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS ARCHER AWARDS AUGUST 6 - 12, 2012

ment programs. Ludwig has served as an anchor, candidates who fit in well with talent in the Czech Republic, Italy Mark Ludwig “His innovative ideas helping the company’s leaders Chart Industries’ culture. He has and China, among other coun- Vice president have continued to keep the understand employees’ needs and helped the company hire several tries. company on the leading clearly communicate through executives, including one director, In his time at Chart, Mr. Ludwig of global risk manage- edge,” the nomination transitions. one executive vice president and co-founded the company’s Opera- ment and process said. “Mark has demonstrated his four vice presidents. He also tional Excellence Team, a group of “There is great support abilities in good times and bad,” brought in the Lominger system of operations, quality, accounting improvement; assistant for the initiatives he leads the nomination said. “More than hiring, a structured approach that and human resources personnel secretary because people trust that once, Chart’s business conditions uses pre-set questions. working to make Chart leaner. He Mark has set clear goals, ones that dictated the need for layoffs. Mr. Ludwig’s skill at attracting also introduced the company’s CHART INDUSTRIES INC. are in alignment with the company’s Mark did not shy away from these employees also is evident during Healthy Living Program, which priorities, and has vetted the strat- difficult assignments. He told acquisitions, of which Chart uses a results-based system to FROM THE NOMINATION: For egy proposed to reach these people straight, did not sugar- Industries has had 11 in the past promote employee wellness, and the past decade, Mark Ludwig has goals.” coat, yet did so respectfully and six years. He always flies to the he played a big role in Chart’s shaped Garfield Heights-based Chart Industries has undergone fairly.” sites of the acquired companies to decision during its lean years to Chart Industries Inc.’s benefits, a number of changes in the past Mr. Ludwig is known for his speed up the integration process freeze its defined benefit plan and incentives, training and develop- 10 years, and along the way Mr. ability to identify management and has succeeded in attracting focus instead on its 401(k) plan.

Clayton Morris human resources,” the nomina- During his time with “He set a standard as In Streetsboro, where he has tion said. “If he did not, he would the city of Twinsburg, Mr. the police department worked since December 2011, Mr. Director of human resources not take on these additional activi- Morris helped the city worked through the inves- Morris has saved the city $75,000 ties beyond his key role with the deal with the closing of tigation and trial,” the by negotiating union contracts CITY OF TWINSBURG city of Twinsburg.” the Chrysler Stamping nomination said. “As you in-house and saved $160,000 in Mr. Morris in 2007 joined the Plant. He played a key role can imagine, those were this year’s premium without FROM THE NOMINATION: city of Twinsburg and since then in adopting wage conces- dark days at city hall and reducing the benefit plans for Clayton Morris serves not only as has brought all eight collective sions, instituting staffing Clay was on hand to employees. director of human resources for bargaining negotiations in-house, freezes and passing an arrange counseling and Apart from his work for Twins- the city of Twinsburg but also fills a move that saved the city thou- income tax ballot initiative to help attend to any need, whether in city burg, Streetsboro and other area the same role for the city of sands of dollars; and he has the city handle the reduced hall or in our extended grieving communities, Mr. Morris is on the Streetsboro. On top of that, he is helped the city find ways to main- income. community.” state Society for Human Resource the equal employment opportunity tain service to the community Mr. Morris also stepped up in Mr. Morris also has formalized Management committee, is a officer for the village of Woodmere amid a 12% decrease in revenue, 2008 after Twinsburg lost a police the use of assessment processes in coach for the Stow Soccer Club and has served as a consultant for which he accomplished by getting officer in the line of duty and the Twinsburg police department and has served as an assistant other area communities. department heads to look at labor worked to help the police and fire and has put in an automated scout master for the Boy Scouts of “Clayton truly lives and breathes costs strategically. departments after the tragedy. application process. America.

between members of the leadership Jenna Nightingale team who spend most of their time working remotely as a group. Human resource manager Ms. Nightingale’s next push was to bring in group coaching for Nestlé NESTLÉ RESEARCH leaders. She herself went through a AND DEVELOPMENT women’s coaching program. “This was not only for her own FROM THE NOMINATION: Jenna professional development, but to Nightingale only has worked at be an active example of the benefits Nestlé Research and Development of self-assessment and coaching. for two years, but Following her lead, her entire she’s already management team completed 360 made an impact evaluations and are in the process at the company, of identifying individual coaching especially through opportunities,” the nomination said. succession plan- Ms. Nightingale also works ning initiatives, to promote Nestlé in the commu- diversity advocacy nity. She created an internship and employee- program, developed relationships coaching pro- with universities and with high grams. schools to promote interest in “Her down-to-earth approach to science education, and organizes working with people helps them to company-sponsored volunteer get past resistance to change and programs for Nestlé staff, the has earned her the trust of staff at nomination said. all levels of the organization,” the “It can be a challenge to drive nomination said. these kinds of changes through an Working with employees who organization as the sole represen- often have little contact with the tative of HR in the company and it parent company, one of Ms. is a testament to Jenna’s leader- Nightingale’s first initiatives was ship that she has come so far is the implementation of off-site such a short amount of time,” the team meetings to build cohesion nomination said.

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Stamy Paul opment and shared equipment could be achievement,” the nomi- updated and maintained, 2012 EVENT Executive director, human nation said. “Working Ms. Paul shifted some with her partners on the resources from production resources Ben Venue executive team, to training and to avoid she has essentially top- losing valuable talent. BEN VENUE LABORATORIES INC. (A graded the personnel and “Stamy has been an in- BOEHRINGER INGELHEIM COMPANY) transformed the entire tegral member in the de- landscape of the company, velopment of our Site FROM THE NOMINATION: although the evolution continues.” Strategy. Our business has faced Stamy Paul’s career as a human Ms. Paul earns high marks for her significant financial and regulato- resources professional began at ability to attract and develop top ry challenges and the only way to Eaton Corp., where she served for scientific and production talent respond and overcome these chal- more than six years. It then took with a new systematic approach to lenges is to re-ground our Site her to Avery Dennison Corp. and recruiting. Over the past four years, Strategy on our strongest asset — finally to Ben Venue Laboratories. the company has hired more than our people,” George Doyle, Ben She joined Ben Venue at a time 600 employees using Ms. Paul’s Venue president and CEO, wrote in when the company was facing big talent acquisition strategies. a recommendation accompanying challenges, including the threat of Under her leadership, Ben Venue Ms. Paul’s nomination. an FDA warning on its product. also revamped its benefits strategy, “She has also been a clear leader “Ben Venue’s leadership solicited including the introduction of in developing strategic plans for Stamy’s help in an effort to trans- domestic partner benefits. our desired Culture Change: a cul- form the company culture from When an internal review resulted ture of mutual respect, diversity, command and control manage- in a voluntary work stoppage at the employee engagement and perfor- ment to one of engagement, devel- company’s Bedford facility, so that mance,” the nomination said.

FILE PHOTO/HAL STATA degree in psychology and a that employees have in the success Attendees prepare for the presentation of last year’s Archer Awards. This year’s Daniel S. master’s degree in public of our growing organization, and event will be held at the InterContinental Hotel, Cleveland. administration from Ohio the foundation they provide for our Serbin State University. He also future success. The 2012 Crain’s Cleveland Busi- more information or to register for this Executive vice president, earned a law degree from “Every day, Dan exhibits the per- ness Archer Awards reception, pre- year’s event, call Erika Singleton Cleveland Marshall sonal traits that we look for in our sented by Howard & O’Brien Executive at 216-771-5371, or email her at human resources College of Law. employees,” he wrote. “He is open Search, will be held next Tuesday, [email protected]. He joined the company and friendly, humble in success, Aug. 14, at the InterContinental Hotel, To view coverage of last year’s PARKER HANNIFIN CORP. in 1980 and held a number conveys genuine caring for others Cleveland. inaugural Archer Awards class, visit of human resources positions until ... and (is) innovative in developing Tickets still are on sale and will be http://www.crainscleveland.com/ FROM THE NOMINATION: he was named vice president of programs that advance our goals.” available until this Friday, Aug. 10. For section/ARCHER_Event. Much of Daniel S. Serbin’s focus at human resources in 2005. He was Parker Hannifin Corp. is on the elevated to his current position in concept of employee empower- 2011. ment. Parker’s diversity strategy also According to the nomination, has been a focus for Mr. Serbin. He Mr. Serbin is leading teams at assembled a global team to spell Parker “to define Employee out the business case for inclusion Empowerment as a business differ- and diversity, initiated a formal entiator that creates a competitive training program and established advantage for us by reflecting our key metrics for inclusion and unique values, promoting a struc- diversity. tured approach to teamwork, Talent attraction and retention recognizing the contribution of all also are under Mr. Serbin’s employees, and holding us umbrella. As such, he has built the accountable for results.” The company’s efforts to attract and teams are being created and retain talented technology workers, trained at Parker facilities across especially in growing markets such the world. as India and China. In January, Mr. Serbin led an Additionally, Mr. Serbin has effort to survey the company’s focused on managing the company’s 60,000 employees to measure health care benefits, developing employee perceptions of both wellness and preventive medicine empowerment and engagement. programs. More than 86% of Parker’s work In a letter accompanying the force responded to the survey, nomination, Parker Hannifin which was administered world- chairman, president and CEO wide and translated into 30 Donald E. Washkewicz said Mr. languages. Serbin “truly understands and Mr. Serbin earned a bachelor’s actively advocates for the value 20120806-NEWS--20-NAT-CCI-CL_-- 8/2/2012 3:05 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS ARCHER AWARDS AUGUST 6 - 12, 2012

into today’s entity employing Diane Shields 2,700 workers. “Diane is viewed as Vice president, human a thought leader and resources frequently sought out as a mentor in developing BENDIX COMMERCIAL talent for Knorr-Bremse VEHICLE SYSTEMS LLC; Group,” wrote Marc Pas- KNORR-BREMSE GROUP towsky, vice president for corporate human relations at FROM THE NOMINATION: Her Knorr-Bremse. “She has truly been colleagues at the headquarters of a key member in transforming Knorr-Bremse Group — an inter- Knorr-Bremse into a global organi- national maker of braking systems zation from a personnel standpoint.” for rail and commercial vehicles Among other best practices, Ms. based in Munich, Germany — say Shields has championed building a Diane Shields is a thought leader. culture of wellness at Bendix. She Back home in Elyria, her boss also launched an engineering at the headquarters of Bendix development program to build the Commercial Vehicles Systems LLC, company’s talent pool. The industry which is the North American is forecasting a severe shortage of affiliate of Knorr-Bremse, agrees. engineers in the next few years. “Diane is an outstanding human “Always thoughtful and engaging, resources and business leader,” Diane counts among her strengths “Diane counts among her strengths ... the instinctive ability to build teams and bridge gaps whether across the ocean or across the hall.” – Nomination form for Diane Shields

Joseph J. McAleese, Bendix’s presi- an innate ability to build and main- dent and CEO, wrote in support of tain strong relationships ... and the Ms. Shields’ nomination. “She is instinctive ability to build teams constantly focused on ensuring and bridge gaps whether across our organization is being devel- the ocean or across the hall,” the oped to execute our strategic plans nomination said. from a people, structure and “She’s pragmatic, she’s intelli- process standpoint.” gent, and she possesses a keen Ms. Shields, who has worked strategic insight that enables her to for Bendix for more than 15 years, align and engage the projects and Health & Life Insurance has managed the personnel-side services necessary to effectively © 2012 Medical Mutual of Ohio transition of Bendix Commercial anticipate and proactively address Vehicle Systems from a subsidiary the needs of an ever-changing of Honeywell International Inc. business.”

Congratulations to the 2012 class of Archer Award finalists!

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Tom Tercek “Tom has excelled as a team player, is willing 2011 WINNERS Director of global to teach and mentor benefits others ...” THE LUBRIZOL CORP. – Barb Belovich, executive director, Health Action Council FROM THE NOMINATION: Given the centrality of health care and with health and wellness issues. wellness issues in today’s corporate In 1997, Mr. Tercek began working HR environment, it makes sense with what then was known as the the program Health Action Council of Northeast Tom Tercek Ohio. During his eight years of devised for his service as board chair, he helped company is transform the group into the Health called Lubrizol Action Council Ohio, a statewide Essentials. group with nearly 200 employer But this is no members. The nonprofit serves as a standard well- voice for Ohio employers that offer ness program. health benefits and wellness services. A group of 2011 “Tom’s vision Barb Belovich, executive director Archer Award is to develop multiple approaches to of the Health Action Council, said finalists and integrate the many aspects of an em- in the nomination that Mr. Tercek winners gather ployee’s life into balance with their leads by example. on stage after work,” the nomination stated. “His “Tom has excelled as a team last year’s event. approach integrates employee player, is willing to teach and FILE PHOTO/HAL STATA health, safety, family, career, and mentor others, is attentive to detail social and financial needs into a and committed to timeliness and is HR EXECUTIVE OF THE YEAR, INNOVATION RISING STAR, NONPROFIT balanced program to support the consistently producing quality work PUBLIC COMPANY Lori Hedrick, vice president of Lauren Rudman, human resources individual and is a strong influence as chair of the (Health Action Coun- Steve Becker, senior vice president human resources, Marcus Thomas performance specialist, Greater Cleve- on our culture as the accountable cil) Group Purchasing Committee,” of human resources, Sterling Jewelers LLC land Regional Transit Authority caring energizes employees and ap- Ms. Belovich said in the nomination. HR EXECUTIVE OF THE YEAR, INNOVATION RISING STAR, PUBLIC COMPANY peals to their values.” The council is in the midst of a PRIVATE COMPANY Zachary Simon, director of global To connect with the scientific procurement process for a pharmacy Tina Myles, InfoCision Manage- Leonora Yurichak, corporate executive talent acquisition, Eaton human resources manager, CBiz Inc. community — Wickliffe-based benefit manager for 93 member ment Corp. Corp. Lubrizol is a maker of specialty employers worth more than $600 HR EXECUTIVE OF THE YEAR, chemicals — Mr. Tercek branded million annually. CITIZENSHIP AWARD NONPROFIT INNOVATION Lubrizol Essentials “with a ‘molecule’ “This is the fourth three-year Daniel Blain, senior vice president, Michelle Meers, director of human Patricia Stumpp, senior vice presi- formed by health, safety, family, contract for which (Mr. Tercek) has Jewish Federation of Cleveland resources, PlayhouseSquare Foundation dent of human resources, Invacare career, social and financial ‘elements,’” led the process, each time refining Corp. according to the nomination. and improving the approach, INNOVATION LIFETIME ACHIEVEMENT Mr. Tercek is a 23-year Lubrizol teaching new employer members in Bill Busby, vice president of sales RISING STAR, PRIVATE COMPANY Christopher Mauer, executive veteran who has a long-term relation- our growing program along the and marketing/former vice president Megan Busovicki, human vice president and director of human ship with a key nonprofit that deals way,” she said in the nomination. of human resources, US Endoscopy resources manager, AdvoCare Group resources, FirstMerit Bank 20120806-NEWS--22-NAT-CCI-CL_-- 8/3/2012 1:42 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 LARGEST LAW FIRMS

RANKED BY NUMBER OF LOCAL ATTORNEYS(1)

Firm Salary for Local address Local Female Minority Of Worldwide associate hired Top local executive Rank Phone/Website attorneys Partners partners partners Associates counsel Staff attorneys from law school Offices Title

Jones Day 1 North Point, 901 Lakeside Ave., Cleveland 44114-1190 205 68 8 1 97 40 681 2,400 $145,000 37 Christopher M. Kelly (216) 586-3939/www.jonesday.com Cleveland partner-in-charge Baker Hostetler(2) R. Steven Kestner, national 2 1900 E. Ninth St., Suite 3200, Cleveland 44114 193 103 21 3 39 14 415 822 $135,000 11 executive partner; Hewitt B. Shaw, (216) 621-0200/www.bakerlaw.com Cleveland office managing partner Calfee, Halter & Griswold LLP Brent D. Ballard, managing 3 The Calfee Building, 1405 E. Sixth St., Cleveland 44114 138 77 16 1 29 15 274 155 NA 2 partner; Thomas F. McKee, (216) 622-8200/www.calfee.com chairman

Thompson Hine LLP Deborah Z. Read, managing 4 127 Public Square, Suite 3900, Cleveland 44114 128 63 17 2 47 18 314 360 $120,000 7 partner; James B. Aronoff, partner- (216) 566-5500/www.thompsonhine.com in-charge

Squire Sanders (US) LLP(3) Frederick R. Nance, regional managing partner; David S. 5 127 Public Square, Suite 4900, Cleveland 44114 126 64 14 5 41 21 351 1,346 $130,000 37 Goodman, (216) 479-8500/www.squiresanders.com Cleveland managing partner Tucker Ellis LLP 6 925 Euclid Ave., Suite 1150, Cleveland 44115 109 47 6 2 28 34 242 154 NA 5 Joseph Morford (216) 592-5000/www.tuckerellis.com managing partner Ulmer & Berne LLP 7 1660 W. Second St., Suite 1100, Cleveland 44113 103 61 10 2 32 10 259 187 NA 4 Kip Reader (216) 583-7000/www.ulmer.com managing partner Benesch, Friedlander, Coplan & Aronoff LLP 8 200 Public Square, Suite 2300, Cleveland 44114 99 54 6 2 39 5 236 165 $105,000 7 Ira C. Kaplan (216) 363-4500/www.beneschlaw.com managing partner Hahn Loeser & Parks LLP Lawrence E. Oscar, managing 9 200 Public Square, Suite 2800, Cleveland 44114 96 53 8 3 29 14 191 129 $110,000 7 partner, CEO; Allan S. Kopit, (216) 621-0150/www.hahnlaw.com partner-in-charge, Cleveland office Reminger Co. LPA 10 101 Prospect Ave. W., Suite 1400, Cleveland 44115 83 66 14 3 13 4 192 123 NA 10 Stephen E. Walters (216) 687-1311/www.reminger.com CEO, president Roetzel & Andress 1375 E. Ninth St., One Cleveland Center, 9th Floor, Cleveland Bradley A. Wright, Akron partner-in- 10 44114 83 55 15 2 28 0 207 206 NA 13 charge; Douglas E. Spiker, (216) 623-0150/www.ralaw.com Cleveland partner-in-charge McDonald Hopkins LLC Carl J. Grassi, president 12 600 Superior Ave., E., Suite 2100, Cleveland 44114 77 49 4 1 22 6 154 136 NA 6 Shawn M. Riley, (216) 348-5400/www.mcdonaldhopkins.com managing partner, Cleveland Brouse McDowell LPA Marc B. Merklin, managing partner; 13 388 S. Main St., Suite 500, Akron 44311 70 49 17 0 16 5 126 70 $83,000 3 Joseph T. Dattilo, partner-in- (330) 535-5711/www.brouse.com charge, Cleveland Frantz Ward LLP 14 2500 Key Center, Cleveland 44114 67 37 6 1 22 5 120 67 $115,000 1 Partnership (216) 515-1660/www.frantzward.com

Buckingham, Doolittle & Burroughs LLP John P. Slagter 15 1375 E. Ninth St., Suite 1700, Cleveland 44114 60 44 9 2 11 5 129 74 NA 4 managing partner, (216) 621-5300/www.bdblaw.com president Gallagher Sharp 16 1501 Euclid Ave., 6th floor, Cleveland 44115 52 34 8 2 16 2 104 56 NA 3 Thomas E. Dover (216) 241-5310/www.gallaghersharp.com managing partner Taft Stettinius & Hollister LLP Stephen M. O'Bryan 16 200 Public Square, Suite 3500, Cleveland 44114 52 33 4 2 10 7 92 325 $105,000 7 partner-in-charge, (216) 241-2838/www.taftlaw.com Cleveland Weston Hurd LLP 18 1301 E. Ninth St., Suite 1900, Cleveland 44114 51 38 7 1 5 8 89 62 NA 3 Carolyn M. Cappel (216) 241-6602/www.westonhurd.com managing partner Walter & Haverfield LLP 19 1301 E. Ninth St., Suite 3500, Cleveland 44114-1821 50 34 4 0 13 3 98 50 NA 1 Ralph E. Cascarilla (216) 781-1212/www.walterhav.com managing partner Krugliak, Wilkins, Griffiths & Dougherty Co. LPA 20 4775 Munson St. N.W., Canton 44718 47 36 4 NA 11 NA 90 47 NA 5 Terry A. Moore (330) 497-0700/www.kwgd.com managing director

Vorys, Sater, Seymour and Pease LLP F. Daniel Balmert, managing partner, Akron; Anthony J. 20 1375 E. Ninth St., Suite 2100, Cleveland 44114 47 19 2 0 14 6 75 360 $120,000 6 O'Malley, managing partner, (216) 479-6100/www.vorys.com Cleveland Weltman, Weinberg & Reis Co. LPA Alan H. Weinberg, managing 22 323 W. Lakeside Ave., Suite 200, Cleveland 44113 44 16 6 1 28 0 610 115 NA 10 partner; Bob Weltman, senior (216) 685-1000/www.weltman.com partner Critchfield, Critchfield & Johnston Ltd. 23 225 N. Market St., Wooster 44691 41 26 5 0 8 2 89 41 $50,000 4 Daniel H. Plumly (330) 264-4444/www.ccj.com managing member Day Ketterer Ltd., Attorneys at Law 24 200 Market Ave., Suite 300, Canton 44702 40 31 4 0 7 2 73 40 NA 3 Robert E. Roland (330) 455-0173/www.day-ketterer.com managing attorney Fay Sharpe LLP 24 1228 Euclid Ave., 5th floor, Cleveland 44115 40 21 4 1 15 4 87 40 $95,000 1 Management Committee (216) 363-9000/www.faysharpe.com Kohrman Jackson & Krantz PLL 26 1375 E. Ninth St., 20th floor, Cleveland 44114 37 24 6 0 11 2 62 37 $87,500 2 Marc C. Krantz (216) 696-8700/www.kjk.com managing partner Brennan, Manna & Diamond Lee S. Walko 27 75 E. Market St., Akron 44308 36 21 2 1 14 1 68 53 NA 4 Matthew A. Heinle (330) 253-5060/www.bmdllc.com co-managing members Pearne & Gordon LLP 27 1801 E. Ninth St., Suite 1200, Cleveland 44114 36 13 1 1 18 4 71 36 NA 1 (216) 579-1700/pearne.com 20120806-NEWS--23-NAT-CCI-CL_-- 8/3/2012 1:42 PM Page 1

AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23

Buckley King LPA 29 600 Superior Ave., 1400 Fifth Third Center, Cleveland 44114 31 17 7 3 12 2 62 56 NA 7 Brent M. Buckley (216) 363-1400/www.buckleyking.com managing partner Cavitch Familo & Durkin 29 1300 E. Ninth St., 20th floor, Cleveland 44114 31 20 0 2 9 2 53 31 NA 2 Michael C. Cohan (216) 621-7860/www.cavitch.com president McCarthy, Lebit, Crystal & Liffman Co. LPA 29 101 W. Prospect Ave., Suite 1800, Cleveland 44115 31 18 2 0 6 7 59 31 NA 1 Kenneth B. Liffman (216) 696-1422/www.mccarthylebit.com managing principal Wegman, Hessler & Vanderburg 29 6055 Rockside Woods, Suite 200, Independence 44131 31 16 2 0 13 3 58 31 NA 1 Keith A. Vanderburg (216) 642-3342/www.wegmanlaw.com managing partner Mazanec, Raskin & Ryder Co. LPA 33 34305 Solon Road, Cleveland 44139 29 9 0 0 20 1 67 30 NA 2 Joseph F. Nicholas (440) 248-7906/www.mrrlaw.com managing partner Wickens, Herzer, Panza, Cook & Batista Co. 33 35765 Chester Road, Avon 44011 29 14 1 0 12 3 72 29 NA 2 Matthew W. Nakon (440) 695-8000/www.wickenslaw.com president, CEO Davis & Young Thomas W. Wright 35 1200 Fifth Third Center, 600 Superior Ave., E., Cleveland 44114 28 19 3 0 5 4 58 28 NA 4 president, (216) 348-1700/www.davisyoung.com managing partner Dworken & Bernstein Co. LPA 35 60 South Park Place, Painesville 44077 28 12 1 1 13 1 67 28 NA 2 Howard S. Rabb (440) 352-3391/www.dworkenlaw.com managing partner Littler Mendelson P.C. 35 1100 Superior Ave., 20th Floor, Cleveland 44114 28 20 7 1 6 2 61 925 NA 56 Sue Marie Douglas (216) 696-7600/www.littler.com office managing shareholder Porter Wright Morris & Arthur LLP 38 925 Euclid Ave., Suite 1700, Cleveland 44115 27 17 7 0 9 1 42 262 $110,000 6 Hugh E. McKay (216) 443-9000/www.porterwright.com partner-in-charge Stark & Knoll Co. LPA 38 3475 Ridgewood Road, Akron 44333 27 19 1 0 6 27 42 27 NA 1 John K. Krajewski (330) 376-3300/www.stark-knoll.com managing partner Javitch Block & Rathbone LLC Bruce A. Block 40 1100 Superior Ave., 19th floor, Cleveland 44114 26 11 3 1 15 1 282 53 NA 8 Joel H. Rathbone (216) 623-0000/www.jbandr.com co-managing partners Tarolli, Sundheim, Covell & Tummino LLP 40 1300 E. Ninth St., Suite 1700, Cleveland 44114 26 NA NA NA NA NA NA NA NA 1 Management Committee (216) 621-2234/www.tarolli.com Roderick Linton Belfance LLP 42 One Cascade Plaza, 15th Floor, Akron 44308 24 10 1 0 10 4 20 NA NA 1 Kay Belfance (330) 434-3000/www.rlbllp.com partner Sutter O'Connell 42 1301 E. Ninth St., Suite 3600, Cleveland 44114 24 10 4 1 14 0 65 26 $80,000 2 Lawrence A. Sutter (216) 928-2200/www.sutter-law.com managing partner continued on PAGE 24

Merging tradition with today For 109 years, our law firm has played a vital role in the story of Cleveland. As we put our name on a downtown landmark, a new chapter is beginning.

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24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 LARGEST LAW FIRMS

RANKED BY NUMBER OF LOCAL ATTORNEYS(1)

Meyers, Roman, Friedberg and Lewis 44 28601 Chagrin Blvd., Suite 500, Cleveland 44122 22 NA NA NA NA NA 44 NA NA NA Peter Turner (216) 831-0042/www.meyersroman.com managing partner Turocy & Watson LLP 44 127 Public Square, Key Tower, 57th floor, Cleveland 44114 22 6 2 2 15 1 40 22 NA 2 Gregory Turocy (216) 696-8730/www.thepatentattorneys.com managing partner Nicola, Gudbranson & Cooper LLC 46 25 W. Prospect Ave., Suite 1400, Cleveland 44115-1048 21 NA NA NA 6 2 17 21 NA 1 Management Committee (216) 621-7227/www.nicola.com Ziegler Metzger LLP Richard T. Spotz Jr. 46 925 Euclid Ave., Suite 2020, Cleveland 44115 21 8 0 0 12 1 35 21 NA 3 (216) 781-5470/www.zieglermetzger.com managing partner Zashin & Rich Co. LPA Andrew A. Zashin 48 55 Public Square, 4th floor, Cleveland 44113 20 2 0 0 16 2 37 21 NA 2 Stephen S. Zashin (216) 696-4441/www.zrlaw.com co-managing partners Fisher & Phillips LLP 49 9150 S. Hills Blvd., Cleveland 44147 19 12 1 0 5 2 35 275 NA 27 Steven M. Nobil (440) 838-8800/www.laborlawyers.com managing partner Schneider, Smeltz, Ranney & LaFond PLL 50 1111 Superior Ave., Suite 1000, Cleveland 44114 17 10 1 0 5 2 32 17 NA 1 James D. Vail (216) 696-4200/www.ssrl.com managing partner Seeley, Savidge, Ebert & Gourash Co. LPA Gary Andrew Ebert 50 26600 Detroit Ave., Cleveland 44145 17 7 1 0 0 1 30 17 NA 1 (216) 566-8200/www.sseg-law.com administrative partner Bonezzi Switzer Murphy Polito & Hupp Co. LPA Steven J. Hupp 52 1300 E. Ninth St., Suite 1950, Cleveland 44114 16 12 1 0 4 0 39 16 $55,000 2 (216) 875-2767/www.bsmph.com managing director Kelley & Ferraro LLP 52 127 Public Square, Suite 2200, Cleveland 44114 16 6 0 0 10 0 74 16 NA 1 James L. Ferraro (216) 575-0777/www.kelley-ferraro.com managing partner McGlinchey Stafford PLLC Mark Edelman, managing member, 52 25550 Chagrin Blvd., Suite 406, Cleveland 44122 16 5 1 0 5 5 28 171 NA 10 Cleveland office; Rodolfo J. Aguilar (216) 378-9905/www.mcglinchey.com Jr., managing member, firm Carlisle, McNellie, Rini, Kramer & Ulrich Co. LPA 55 24755 Chagrin Blvd., Suite 200, Cleveland 44122 15 5 1 0 10 0 82 16 $60,000 2 Management Committee (216) 360-7200/www.carlisle-law.com Stumphauzer | O'Toole Dennis M. O'Toole 55 5455 Detroit Road, Sheffield Village 44054 15 6 0 0 9 0 29 15 $75,000 1 (440) 930-4001/www.sheffieldlaw.com senior partner

RESEARCHED BY Deborah W. Hillyer Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Numbers as of June 1, 2012. (2) Starting salary for associates includes a $5,000 stipend. (3) $130,000 starting salary plus $9,000 stipend.

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AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25 Browns: Sports franchise values continue to grow

continued from PAGE 1 ON THE WEB: Catch Crain’s Joel million in its latest valuations of Hammond discussing the sale on NFL teams, while Villa’s value was 92.3 The Fan. http://tinyurl.com/ put at $240 million in the magazine’s d77v6wh last soccer team rankings, in 2009. But, “being cash rich (and) asset “If buyers know your family has rich are two very different things,” been left with a pile of crap to clean said Jeff Malbasa, chief operating up, you’re not going to get what it’s officer at Spero-Smith Investment worth,” said Joseph G. Corsaro, who Advisers Inc., a wealth and asset specializes in tax law at his law firm, management advisory firm in Corsaro & Associates in Westlake. Beachwood. There also is uncertainty sur- “Whether it’s you, me or Randy rounding the immediate future of Lerner, you have to concentrate on capital gains taxes, which were part short-term liquidity,” Mr. Malbasa of President George W. Bush’s wide- said, “and that’s even more the case ranging cuts in his first term. That in an uncertain estate and tax envi- rate cut, to 15%, was extended by ronment.” President Barack Obama for 2012, Memories of Art Modell but by all accounts, the capital gains rate will jump at least to 20%, with Investment advisers say the most another 3.8% hike coming as part of pressing need for liquidity for Mr. President Obama’s plan to fund Lerner and any high-net-worth Medicaid. individual relates to estate taxes, a Depending upon November’s matter made more important for presidential election, some advisers the divorced Mr. Lerner. are warning clients that rate could If Mr. Lerner, whose net worth go even higher, no matter who’s approaches $1 billion, according to elected; some fear a jump to as high Forbes, were married, he might be as 35%. more willing to wait to sell the team, For Mr. Lerner, whose father as he would leave it to his spouse invested $530 million to buy the new upon death, delaying an estate Browns franchise in 1999, the differ- tax bill of $350 million or so. But ence between a 15% capital gains because the 50-year-old is divorced, tax and a 23.8% rate could mean a JAY LAPRETE/THE ASSOCIATED PRESS his family would inherit his assets $41.3 million hit on a $1 billion sale, New Browns owner Jimmy Haslam speaks Friday at Browns headquarters in Berea. and be forced to pay that tax within the reported value of the deal. In the nine months of his death. case of a jump to 35% in the capital Jacksonville Jaguars for $760 million, because of the team’s planned move many teams in football for sale,” It’s not uncommon for estate gains tax, Mr. Lerner could take a hit which was above the team’s $725 to San Francisco. The Grizzlies were said Mr. Rapkoch, who noted that planning and liquidity issues to of $94 million above what he’d pay million valuation from Forbes. bought by a Silicon Valley entrepre- the median ownership tenure in the come into play in sports ownership, at 15% if he were to wait until 2013 (Teams roundly reject the maga- neur for $350 million, or about $80 NFL is 20 years. as evidenced by the experience of or beyond to sell. zine’s valuations, reasoning that million more than Forbes’ projection. Mr. Rapkoch said Mr. Lerner the late Art Modell, the man who Mr. Haslam will pay Mr. Lerner the magazine only can estimate However, the NFL remains the “either wanted to sell for his own moved the original Cleveland Browns $700 million upon completion of without access to their books.) gold standard for sports leagues, reasons, or he was presented an offer in 1996 to Baltimore. the deal and another $300 million In the NBA, the Memphis Griz- which is why teams with mediocre that was too good to turn down.” Mr. Modell owned 50% of the at a later date; media outlets have zlies, Golden State Warriors and records such as the Browns still can “If an NFL team comes up for Browns and had an interest in reported that the second payment Detroit Pistons all sold for over fetch big dollars. sale, you’re talking about the top Stadium Corp., the entity that leased will come on the fourth anniversary Forbes’ valuations, though the deal “The circumstances are unique league,” Mr. Rapkoch said. “There’s Cleveland Municipal Stadium from of the deal. for the Warriors came at a premium to each situation, but there aren’t high demand.” ■ the city of Cleveland and managed it for Indians and Browns games. Demand outpaces supply Most of Mr. Modell’s assets were Mr. Haslam, president of Pilot tied up in the Browns. Corp., which manages truck stops But instead of selling all or part of nationwide, is paying an amount his stake in the team to address his about 2% above Forbes’ valuation if need for cash, the then-71-year-old media reports of the deal’s value are Mr. Modell took a reported $50 correct. It generally is regarded as a million relocation bonus from the good price for Mr. Lerner, with the state of Maryland. After the move, Browns playing in the 17th-largest he would sell the team in stages to media market in the country and businessman Steve Bisciotti. with its well-known struggles. Mr. Modell was trying to help his But even with securing a slight family avoid the problem faced premium in his deal, Mr. Lerner by the heirs of former Cincinnati appears in a hurry to sell a franchise Bengals co-owner Paul Brown. Mr. in a league where team values keep Brown’s estate was left with a $36 climbing. million judgment from the Internal The NFL, after all, is rolling in Revenue Service after the team’s dough, thanks to ever-increasing patriarch died in 1995. national TV money: Last September, Avoiding a pile of crap ESPN agreed to a new “Monday Night Football” deal that included a There is an estate tax deferral 73% increase in payments to the option for those whose assets are in league, to $1.9 billion a year. And in closely held businesses, such as pro December, the NFL signed new sports teams, according to Jeff Perl- contracts with NBC, CBS and Fox muter, an estate planning specialist that collectively will pay the league at Cleveland law firm Frantz Ward about $4.25 billion a year, a 6% LLP. If Mr. Lerner were to die while to 7% jump over those networks’ still the Browns’ owner, whoever previous deals. inherited the team could defer the Because the TV money continues first payment for five years and have to expand, there is a limited supply 10 years to pay the estate tax bill, of teams on the market; there’s also Mr. Perlmuter said. plenty of demand for them due to While a sale now won’t help Mr. potential investors sitting on cash, Lerner avoid a scheduled jump in according to Michael Rapkoch, the federal estate tax to 55% from president and founder of Sports 35% next year, it will give him and Value Consulting LLC, a company his family the necessary liquidity to in Addison, Texas, that provides avoid a fire sale transaction, where sports team valuation and advisory potential buyers know the Lerner services in all four major leagues. family must unload the team to And across those leagues, the meet its tax obligations should he sales that do occur continue to out- unexpectedly die. In turn, those pace projections. Illinois business- buyers could offer less for the franchise. man Shahid Khan bought the NFL’s 20120806-NEWS--26-NAT-CCI-CL_-- 8/3/2012 1:43 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 6 - 12, 2012 Chancellor: Executives say school’s financials remain strong

continued from PAGE 1 self-sufficiency, enrollment, student scores institutions on a sliding scale emic offerings is on the upswing. helm. Prior his arrival, both Bob of his school’s operations. retention and strategic planning. from a negative 1.0 to a positive 3.0. He indicated the school’s course- Barker, a former University of Mr. Daugherty said the Depart- work offers, for example, a more Phoenix executive, and George Kidd, “Every member of the leadership Peers weigh in team and the board of trustees would ment of Education’s scoring doesn’t personalized approach to students former president of Tiffin University, swear in a court of law, on the Bible Prior to the issuance of the show- take into account revenue generated than in the past. held stints running the college. cause order, a group of peer reviewers from licensing fees or the sale of Messrs. Daugherty and Kerr said and the U.S. Constitution that this What’s next institution is significantly better from other academic institutions property, such as the sale last year Chancellor rather would spend its than it was when it got off show- visited Chancellor in order to for $7 million of Chancellor’s former By early September, Chancellor time working on projects that cause” last time, Mr. Daugherty said. advise the commission on whether online MBA program bearing the must make its pitch for continued benefit students than employ the Higher Learning Commission the university deserved continued name of retired General Electric accreditation by means of a report manpower needed to satisfy the officials wouldn’t comment beyond accreditation. CEO Jack Welch to Virginia-based detailing how it has ameliorated commission’s demands. Still, the what’s stated in the show-cause order, Mr. Daugherty claims the Higher Strayer Education Inc. Mr. Daugh- the Higher Learning Commission’s university plans to charge ahead which Chancellor — as required by Learning Commission’s board went erty said last week that Chancellor concerns. Commission officials will with its strategic plan. the accrediting agency — must against the peer reviewers’ recom- is on track to be financially self- visit the university the following The university this September display on its website. However, the mendations — “a pretty serious sustaining from its operations by month, with its board expected to plans to launch its new MBA pro- order — a link to which is found thing to overturn,” he added. Mr. December. make a final ruling in February. gram, which has been in develop- under a “Public Disclosure Notice” Daugherty, however, wouldn’t Chancellor’s enrollment, according “I’m not sure it’s a setback,” Mr. ment since the Jack Welch program in small type at the very bottom of share the peer reviewers’ report with to Higher Learning Commission Daugherty said when the term was was sold to Strayer last November. Chancellor’s home page — offers a a Crain’s reporter on advice of legal data last updated in April, includes used by a reporter to describe the While only about 10% of the roughly critical, albeit vague, review of the counsel, citing potential litigation. 105 full-time undergraduate and 28 latest show-cause order. “We’ve 250 students enrolled in the Jack college’s operations. According to Mr. Daugherty, full-time graduate students. The been here before, and I’m confi- Welch program stuck with Chan- The commission, for one, expressed Chancellor’s financial status is university also boasts 215 part-time dent we’ll get through it again.” cellor, Mr. Kerr said it was still too concern regarding Chancellor’s strong — a finding he said is undergraduate and 175 part-time The Higher Learning Commission soon to tell whether the loss of the ability to operate with “integrity to affirmed in the peer reviewers’ graduate students. placed Chancellor on probation in MBA program that many people ensure the fulfillment of its mission” report. He said the U.S. Department On the academic front, Chancellor 2009, and the university slipped to had seen as Chancellor’s lifeline would because of “issues related to con- of Education recently assigned the provost Steve Kerr, a former GE the more serious show-cause status be a detriment to the university. flict of interest.” When asked why institution a fiscal health score of executive hired in 2009 to help early the following year. “We are very proud of the the commission would make such 1.78, whereas anything above a 1.5, develop the school’s business cur- Mr. Daugherty came on board at changes we’ve made,” Mr. Kerr a charge, Chancellor’s Mr. Daugh- according to a description on the riculum, argued in an interview last Chancellor amid those troubles in said. “We inherited a bad situation erty said, “I honestly have no idea.” department’s website, “indicates week that despite the Higher the summer of 2010 following a and I think since then it’s not just Moreover, the commission cited the institution is considered finan- Learning Commission’s assertions, series of leadership changes made happy talk, but there are higher issues related to Chancellor’s financial cially responsible.” The government the quality of the university’s acad- it unclear who was at the university’s standards.” ■

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AUGUST 6 - 12, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Printing plant news becomes effective Aug. 11 if no appeal is will start voting on awards at the end of the JULY 30 - AUGUST 5 filed. — Jay Miller second day. that’s worth printing Asked via email what prompted him to The big story: The Lerner family era of Cleve- propose the cap, Mr. Langos said he wants ■ The Cuyahoga County Board of Revision, land Browns ownership is nearing an end. Browns Managing the to ensure taxpayer money is spent efficiently. which hears challenges to the assessments owner Randy Lerner reached a deal last week to “This is not about the amount (being for tax purposes of property values in the managers’ costs sell the team to Jimmy Haslam, president of spent on the Entrepreneurial Signature county, has found its actions in the news in ■ The Ohio Third Frontier Commission Knoxville, Tenn.-based Pilot Corp., for about $1 Program) but more about the amount being recent months. wants to make sure JumpStart Inc. of Cleve- billion. Mr. Haslam will need to divest his minor- focused and targeted in specific areas,” said But one action probably won’t get much land and the other five nonprofits that form ity stake in the Pittsburgh Steelers to take own- Mr. Langos, who also is chief operating coverage. That’s the big, $13.3 million the nucleus of the state’s ership of the Browns. NFL owners still need to officer of Teradata Corp., a data analytics reduction in value of The Entrepreneurial Signa- approve the sale. See related story, Page One company in Dayton. — Chuck Soder Plain Dealer publishing ture Program aren’t Best in years: Biomedical companies in plant on Tiedeman Road spending too much on Northeast Ohio are raising more venture capital in Brooklyn. management and other ArcelorMittal extends than they have since 2007. During the first half Cuyahoga County fiscal administrative expenses. officer Wade Steen made The commission is a hand to the lakes of 2012, 33 Cleveland-area companies ■ raised a total of $83.6 million in that observation to a gathering salary data One of the last chances to see Steven venture capital, according to the group of public officials at from the six nonprofits LaTourette — at least as a congressman — Midwest Health Care Venture a meeting last Thursday and asking them to say might be today, Aug. 6, when the Geauga Investment Report, released by of the First Suburbs Con- which positions on their County Republican headlines an event to BioEnterprise Corp. By com- sortium. Mr. Steen was staff are mainly adminis- announce $8.2 million in grants for Great parison, 18 companies raised reporting to the suburban public officials trative and which are focused primarily on Lakes restoration projects. $50.2 million during the first who are part of the consortium on the recent providing assistance to entrepreneurs, Rep. LaTourette will be joined by officials half of 2011. In the first half county property re-valuation and the workings which is the program’s goal. from steelmaker ArcelorMittal and govern- of 2010, 17 companies raised of the fiscal office, which includes the Board During the commission’s July meeting, ment agencies involved in managing the $36.7 million. The dollar figure is rising partly of Revision. commissioner Bruce Langos suggested lakes. because many biomedical companies in North- He told the group that 2012 re-valuation those costs be capped if they are too high. ArcelorMittal, the private financier of the east Ohio no longer are early-stage startups, said is showing property values beginning to rise The commission is in the process of grants, says the money will be used to fund BioEnterprise president Baiju Shah. again in their communities. But he added re-evaluating the Entrepreneurial Signature 34 projects, including four in Ohio, aimed at that most can expect some tax revenue loss Program, one of the bigger initiatives within preserving the lakes’ ecology. Power tower: The July 31 sale of the 57 from the Board of Revision decisions and he the Third Frontier, a broader technology- Various government agencies that are remaining Avenue Tower condominiums for cited the PD reduction in particular. focused economic development program. working on the projects are expected to $6.9 million marked the resolution of most of the According to the online Board of Revision In June, commission members decided to match those dollars, creating more than $16 litigation over construction of the tower at down- complaint file, Plain Dealer Publishing Co. delay a vote that would have provided $40 million in total project funds, ArcelorMittal town Cleveland’s Avenue District. The move won a $13,317,200 reduction in the value of million in grants to fund the six nonprofits said in announcing the initiative. puts the condo units on the market as upscale its printing plant, to $46,841,200 from and other organizations that they work with The event is slated for 10 a.m. at the Lake apartments. Zaremba Management of Fairview $60,158,400, which equates to a 22% drop. for two years. They’ll take a two-day retreat Erie Bluffs Park in Perry Township. — Dan Park will manage the property, now owned by a The decision was recorded July 11 and to discuss the program later this month and Shingler group including developers Tony Panzica, Fred Geis and Timothy Zaremba. MILESTONE BEST OF THE BLOGS Innovative approach: The Cleveland Clinic tapped ProMedica, a Toledo-based health system Excerpts from recent blog entries on platform? Mashable.com, a leading tech that operates 11 hospitals, as the latest member CrainsCleveland.com. website, suggests you make sure the feed of its growing Innovation Alliance — a collabo- from a magazine with business operations rative effort designed to lead to the commercial- This place is going to in Geauga County is at the top of your list. ization of medical technologies. ProMedica is the dogs, and it helps The website offered 25 suggestions for the third health system to join the effort, which Twitter accounts “that will increase your ■ is steered by Cleveland Clinic Innovations, the An Akron restaurant is among what The general knowledge of a wide range of topics: business development arm of the Clinic. Wall Street Journal called “a smattering of science, technology, human rights, the upscale restaurants” that are expanding to environment and more.” Ranked in the No. Hitting on all cylinders: A California man- let dog owners dine al fresco with their pets. 1 position is @mental_floss, an extension ufacturer’s relocation to Mentor will bring the “Restaurants generally take underutilized of mental_floss magazine. The magazine, area 100 full-time jobs. JE Pistons, a maker of outdoor patio space where owners can dine bought last year by British-born magazine with their dogs,” The Journal reported. publisher Felix Dennis, has business opera- high-performance forged pistons that is owned THE COMPANY: The Ohio Blow by Performance Motorsports Inc., plans to “Some have separate menus tions led by a Geauga County couple, Toby move to the site of Wiseco Piston Inc., a Mentor- Pipe Co., Cleveland with special entrees for dogs: and Melanie Maloney. anything from lamb stir fry Mashable.com said the account is “perfect based unit of Performance Motorsports that THE OCCASION: Its 80th anniversary makes forged aluminum pistons. With the con- to meat loaf to scrambled for knowledge junkies,” helping them learn solidation, an additional $3.5 million in annual eggs with bacon bits. “little-known facts across many topics, The company, founded in 1932 in the city When the pooch needs whether pop culture, sports or science.” payroll will be generated and $12.4 million in it still calls home, increasingly is a citizen of existing payroll will be retained in Mentor. to take a bathroom break, The magazine is in good company. Among the world, too. space is provided at the side or the Twitter feeds on the list are those for Ed Fakeris, president and CEO of Ohio Effort pays off: After three months of nego- behind the restaurant, com- NASA, Melinda Gates and the Massachu- Blow Pipe, said 2011 “was a record year for tiations, the United Steelworkers union reached plete with waste pickup bags.” setts Institute of Technology. sales volume due to our record export D’Agnese’s at White Pond, a tentative agreement on a new four-year con- sales,” and 2012 “continues on with strong tract with Veyance Technologies Inc. in Fair- a restaurant in Akron, spent three years getting A long winning sales and exporting to China, Vietnam, its dog menu off the ground. lawn. The union said the settlement covers Malaysia, and throughout South America.” streak is in jeopardy workers at four U.S. locations. It came a few days “The restaurant’s first application to Ohio Blow Pipe engineers, fabricates and ■ after members voted to authorize a strike against allow animals on the patio was denied three “It’s ugly out there and it could go worse.” installs custom air conveying systems, as years ago because it didn’t comply with That’s how Reuters described the outlook the maker of auto parts and rubber engineered well as dust and oil mist collection systems, products. Members still must ratify the contract. health codes,” according to The Journal. for third-quarter U.S. corporate earnings, for a variety of uses, including production of “Recently, a separate entrance for dogs was in a story that included comments from cans, corrugated boxes and folding cartons; This and that: The General Services added ... because animals are forbidden Edward Hemmelgarn, founder and chief document destruction; printing, paper and from walking through the restaurant.” investment officer of Shaker Investments in Administration, the federal government’s pur- bindery services; and recycling. chasing and property arm, is auctioning two But restaurant owner Joe Gallagher got Beachwood. The company’s patented AirScreen system the permit to serve dog fare in June. He lists “Third-quarter earnings of Standard & low-rise buildings on the campus of NASA Glenn is found in beverage, food and aerosol can Research Center. GSA has launched the bidding ingredients such as locally grown corn, Poor’s 500 companies are now expected to manufacturing plants worldwide. organic chicken, wild rice and stone-ground fall 0.1% from a year ago, a sharp revision from at an attention-getting $200,000 — a swell price “We integrate all of the scrap-generating for two buildings totaling 200,00 square feet, on oats on a biscuit-shaped dog-food menu. the July 1 forecast of 3.1% growth,” Reuters production equipment that forms and trims Already, he estimated a 25% increase in reported. That would be the first decline in nearly 10 acres. … More proof of Cleveland’s the cans … and convey the scrap with our chops as a running town arrived last week as revenue from about 40 dogs a week. earnings since the third quarter of 2009. air conveying and separating technology “We’re looking at really slow growth,” Mr. Positively Cleveland, Competitor Group Inc. from the manufacturing process away from and the Rock and Roll Hall of Fame and Museum If you want to add brain Hemmelgarn told the news service. He these machines,” according to a statement added, “Any company that does any over- announced the first Rock ‘n’ Roll Cleveland Half from Mr. Fakeris. power, swim in this stream Marathon will take place Oct. 5, 2013. seas business is citing the fact that the rise For information, visit www.OBPairSystems ■ Looking for some smart Twitter accounts in the dollar, especially against the euro, has .com. to add to your stream from the microblogging hurt their revenue and earnings.” 20120806-NEWS--28-NAT-CCI-CL_-- 8/3/2012 4:14 PM Page 1