Fitzgerald to Put His Stamp on Metrohealth

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FitzGerald to put his stamp on MetroHealth County boss faces new board appointments, CEO choice head on WHO’S COMING AND GOING? A look at MetroHealth’s trustees Appointed: 2005/Ends: 2016 By TIMOTHY MAGAW Over the next two years, Mr. he and other county officials will and when their terms expire: ■ John M. Moss [email protected] FitzGerald plans to replace three be, as he put it in an interview with ■ Polly H. Clemo Appointed: 2010/Ends: 2016 members whose terms are expiring Crain’s Cleveland Business, “con- Appointed: 1995/Ends: 2015 ■ Donna Kelly Rego A changing of the guard is in on the 10-member board of trustees sultative” partners in the nation- ■ Ronald Fountain, chairman Appointed: 1983/Ends: 2013 store for the leadership at the hard- for the county-subsidized health wide search for the replacement for Appointed: 1997/Ends: 2013 ■ J. B. Silvers pressed, 175-year-old MetroHealth system. Those appointments would MetroHealth CEO Mark Moran, ■ William Gaskill, vice chairman Appointed: 2011/Ends: 2017 System, and Cuyahoga County be on top of the two picks Mr. who announced last month he Appointed: 1980/Ends: 2012 ■ Charles Spain Jr. Executive Ed FitzGerald is likely to FitzGerald has made since taking would step down from the post once ■ Thomas M. McDonald Appointed: 1990/Ends: 2014 have his fingerprints all over the office last year. the board named his successor. Appointed: 2008/Ends: 2014 ■ Vanessa L. Whiting transition. Mr. FitzGerald also expects that See METRO Page 17 ■ Terry Monnolly Appointed: 2011/Ends: 2017 Former JumpStart aide joins chorus of nonprofit critics AxioMed co-founder takes issue with group’s board makeup, staffing

By CHUCK SODER [email protected]

A former employee of JumpStart Inc. has joined the critics of JumpStart. Chuck Birchall Jr., co-founder of AxioMed Spine Corp. of Garfield Heights, last week sent JumpStart a six-page-long list of criticisms and recommendations regarding how the Cleveland-based nonprofit that assists and invests in young companies could save money and provide better services to entre- JANET CENTURY PHOTOS preneurs. ABOVE: Karl West, director of the Cleveland Clinic’s Medical Device Solutions unit, runs the hospital system’s mechanical prototype shop. Mr. Birchall, who spent more than BELOW: Mr. West holds an aortic valve with calcification created by the shop’s Connex 3D printer. Birchall three years as an entrepreneur- in-residence at JumpStart before the By DAN SHINGLER nonprofit eliminated his position about a year ago, is one [email protected] of a handful of local entrepreneurs who have criticized THE JumpStart publicly over the past year. However, he is the urgeons and other doctors who See JUMPSTART Page 4 perform miracles get most of the limelight at the Cleveland Clinic, OTHER but in the basement of its main INSIDE Scampus, a crew of machinists, fabricators, engineers and researchers does impressive Westlake may change water works MR. FIX-IT work, too — though mostly on steel and Cleveland is butting heads with the western suburb as it plastic, as well as the occasional human considers leaving the city’s water system. PAGE 3 body part. Unknown to most, the world-renowned ALSO: Out of view of patients, hospital and research institution has a full ■ Energizer’s local unit is making more machine shop and other manufacturing- consumer products. PAGE 6 docs, Clinic shop allows related rooms housed below its medical ■ Cohen & Co. takes more space for buildings near University Circle. The shop growth. PAGE 7 for tool rehab, new idea gives the Clinic the ability not only to make, modify and repair tools for its own development See FIX Page 8

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JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Industrial INSIGHT Pressure real estate rising in vacancies Westlake inch down water war Office market, though, sees slight uptick Cleveland disputing

By STAN BULLARD west ’burb’s estimate [email protected] on costliness of exit Flat. Despite big events that ranged By JAY MILLER from the sale of the closed Chrysler [email protected] stamping plant in Twinsburg to companies gobbling up large chunks The city of Cleveland is raising the of space at the 200 Public Square stakes as it watches the city of Westlake office building in downtown Cleve- move to disconnect its water hose from land, that one word sums up the con- Cleveland’s spigot and re-connect to Avon Lake. dition of Northeast Ohio’s industrial THE UNIVERSITY OF AKRON Cleveland is casting doubt on the and office markets in 2011 versus The University of Akron plans to extend its public-private partnership strategy for upgrading its residence halls — financial and engineering estimates the 2010. like it did at its Exchange Street project, above — to its academic buildings. The interior of Leigh Hall western suburb is relying on to substan- Such is the picture gained from (below), a 1940s-era building, already has been renovated with state-of-the-art classrooms and equipment. Grubb & Ellis Co.’s just-released tiate its plan to switch water suppliers. report on those two markets. It’s also raising legal issues that, if For the first time in three years, sustained, would add substantially to the report shows, vacancy declined in Westlake’s cost of a move. Northeast Ohio’s industrial market, A departure would be a blow to to 11.9% as of year-end 2011 from DEVELOPMENT, Cleveland’s Division of Water, which 12.8% at the end of 2010. By contrast, has excess capacity in its system and is the vacancy rate of the office market working to overcome critical customer inched upward, to 21.9% at the end DESPITE DEBT service failures that angered public of 2011 from 21.6% a year earlier. officials and residents across the 70 Much of the progress on the communities it serves. industrial front came In lieu of borrowing, University of Akron hopes to expand recent Westlake has been mulling a switch INSIDE: A from a shrinkage of since at least 2008, when the city of closer look the market due to spate of public-private deals to continue on-campus momentum Cleveland announced a four-year rate at Grubb and demolition of mas- increase phase-in that would boost the Ellis statistics. sive old factories. By TIMOTHY MAGAW years given the school’s lofty debt cost of water 35%. In addition, its resi- Page 16 That space was all [email protected] load — about $425 million — and its dents have complained about botched empty, so it ac- desire to continue to build to accom- billing and poor repair service. counted for a sizable amount of the he University of Akron isn’t modate further enrollment growth. In a telephone interview last Wednes- 7% drop in vacant industrial space, going to let a steep pile of “We don’t want to lose that day, Jan. 4, Westlake Mayor Dennis to 36 million square feet at the end of debt stop the school from momentum, and we have others Clough said his city also would like 2011 from 39 million a year earlier. continuing to develop its trying to catch us because they see water mains replaced or rehabilitated However, due to the industrial Tcampus and the blighted areas our formula is working,” said Ted when Westlake makes major repairs of market’s massive size, Grubb & Ellis surrounding it, as it plans to use Curtis, the university’s vice president streets. He’s annoyed when a freshly reports the amount of rentable other people’s money to make cap- for capital planning and facilities. repaired street is torn up after a water industrial space was down a little ital investments happen. “There’s a point in borrowing where line breaks. Cleveland’s Division of less than 1%, to 301 million square The university has dabbled in the we still have the demand, but you run Water, like most utilities, is reluctant to feet from 303 million. public-private partnership arena in out of funds, so now we’re leaning replace equipment before the end of its A pickup in industrial property the past to finance capital projects, heavily toward public-private part- useful life. transactions last year along with the but administrators expect the number nerships.” The tentative plan is for Westlake to smaller size of the market combined of such deals to ramp up in coming See DEBT Page 7 buy water wholesale from Avon Lake. to reduce the vacancy rate, said Terry Westlake would handle billing and Coyne, executive vice president at maintenance on its own. Grubb & Ellis’ Cleveland office. Westlake’s consultant, HNTB Corp. “Manufacturing is still strong here,” of Kansas City, Mo., hasn’t offered a Mr. Coyne said, citing a plethora of new rate schedule for Westlake’s sale of buildings in the region bought by Avon Lake water to its residents. But when manufacturers to expand. asked if maintaining its own water “We’re not back to normal, but distribution system would result in getting close to it,” he said. “Banks rates higher than what Cleveland now are making real estate loans and charges, Mayor Clough said, “We don’t competing for real estate deals anticipate that.” again. Liquidity is like oxygen in this Westlake is relying on its consultant’s See VACANCIES Page 16 See WATER Page 6 THE WEEK IN QUOTES FEATURES Classified ...... 18 “The (Cleveland) “That’s really strong “They fail to consider “People really do get Editorial ...... 10 Clinic is really pushing growth in this what happens when stuck a lot. … They Going Places ...... 12 the envelope as far as profession.Virtually the honeymoon is don’t see what else is List: Northeast Ohio’s folding in prototype all of that growth is over.” possible.” Top SBA Lenders ...... 16 Personal View ...... 10 development and internal growth.We — Frank Manning, attorney, — Sunny K. Lurie, CEO of Manning & Manning Co. LPA in Beachwood-based Fast Focus product development didn’t do any big Mentor. Page 13 Careers. Page 14 CORRECTION activities into their acquisitions.” The Dec. 19 list of Largest Private commercialization — Randy Myeroff, president Schools reported incorrect high school and CEO, Cohen & Co. Page 7 enrollment numbers for Hawken effort.” School and Cuyahoga Valley Christ- ian Academy. The correct enrollment — Mark Coticchia, founder, numbers are 429 and 645, respectively. Red Wind Innovations. Page One 20120109-NEWS--4-NAT-CCI-CL_-- 1/6/2012 3:58 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012 Critic(s) works hard to make points By CHUCK SODER those posts, he sometimes would names, I guess my poor writing is [email protected] write that he agreed with previous easy to spot. In some instances it is comments that he made under because Cleveland.com will take If you’ve ever read negative another name, making it look like down a post and if written under a online comments about JumpStart multiple people held the same different name it will stay up. Other Inc., Mike Burkons may have had point of view. All three websites times it is to keep some anonymity. something to do with it. have removed at least some of Mr. The group we are trying to shed Mr. Burkons, a local entrepreneur Burkons’ comments. transparency on has a state-funded and an outspoken critic of Jump- Mr. Burkons also recruits other $13 million budget allotting much Start, is not the only member of the critics of JumpStart and encourages of it to support a large number of region’s business community to them to post comments on blogs and marketing and PR professionals as criticize the nonprofit online, but news stories about the organiza- well as interns. he easily is one of the most active. tion, which gets nearly half its money “Jumpstart’s marketing and PR Not all the comments are under from the state of Ohio. Some of those efforts used to be larger until those his own name, however. Mr. Burkons comments are anonymous, too. pesky anonymous bloggers publicly has admitted that he has anony- Mr. Burkons — who founded questioned if this was an effective mously posted critical comments Charitee Golf LLC, a small business use of our tax dollars. Here is a on CrainsCleveland.com, Cleveland in Shaker Heights that provides a solution … if Jumpstart gives us half of .com and Tech.MN, a technology video monitoring service designed the funds used to support their mar- blog in Minnesota, where Jump- to help golf courses award prizes to keting and PR efforts, I will always Start is helping economic develop- people who get a hole-in-one or post under Mike Burkons. With so ment groups create a plan to boost win a closest-to-the-pin contest — many resources dedicated towards entrepreneurship in that region. said he would respond to the posting defending and promoting them- He occasionally has used multiple issue only if Crain’s agreed to selves one would think they would THURSDAY, JANUARY 19, 2012 anonymous names to comment on include his entire quote. Here it is: address the content of the criticism a single news story or blog item. In “As for posting under different instead of the source?” ■ 11:30 am Registration • 12 Noon Lunch & Program JOE TAIT TERRY PLUTO Moderated By JOHN TELICH JumpStart: Board needs tech expertise continued from PAGE 3 Board makeup targeted “People have different interpre- first to have worked for JumpStart, tations on what it is to be an entre- which will receive from the state of JumpStart encouraged Mr. Birchall preneur,” said Mr. Weintraub, Ohio 43% of its $13.8 million budget to leave because it was planning to adding that JumpStart also wants have an affiliated organization, the Authors of... Joe Tait: It’s been a real ball. Book Signing for the fiscal year that ends next the board to reflect the broader June 30. Youngstown Business Incubator, Northeast Ohio community. For more info: www.ExecutiveCaterers.com and click on Corporate Club or call 440.449.0700 Mr. Birchall’s recommendations provide more services to informa- Many tech entrepreneurs don’t echo criticisms of JumpStart that tion technology companies on behalf want to join the board because they three area entrepreneurs made last of the nonprofit, Mr. Leach said. are too busy running businesses or April in a lengthy series of emails Mr. Birchall, who worked with IT because doing so would prevent they forwarded to business leaders companies at JumpStart, said he them from receiving money from and politicians throughout North- does not hold a grudge against the JumpStart, Mr. Leach said. east Ohio. For instance, Mr. Birchall organization, adding that the group said JumpStart should place more even helped him look for other Now’s the time technology entrepreneurs on its opportunities. He acknowledges in Mr. Birchall said JumpStart has Penske Logistics, board, spend less on marketing and his document that JumpStart also too many layers of management and on salaries for its management team, turned him down last year when he spends too much on marketing. The and revamp the way it measures its applied to receive an investment for organization has 46 employees, a supply chain management consulting firm, economic impact in Northeast Ohio. Sports Director Online LLC , a soft- including seven who work mainly has renewed its lease. Public criticism — which since ware company he started. outside the region as part of a busi- April has continued on blogs and in Besides helping start AxioMed, ness development effort supported the comment sections of online news Mr. Birchall was an executive at by federal grants. JumpStart has six stories, often in the form of anony- spinal implant maker AcroMed Corp. marketing positions. One employee IntelliCorp,Intellcorp, mous posts — hasn’t convinced Jump- of Cleveland, which was acquired works in marketing part time. a comprehensive pre-employment Start CEO Ray Leach to make signif- by DePuy Inc. for $325 million in “They have a bigger marketing a screeningcomprehensive service pre-employment for employers, icant changes to the organization. 1998. He also served as a part-time team than (AcroMed) had for a $100 chief financial officer for Cleveland- has signed a lease. Mr. Leach said one reason why is million company,” Mr. Birchall said. screening service for employers, because none of JumpStart’s finan- based eBlueprint Holdings LLC, Mr. Leach says JumpStart has We appreciatehas the signed participation a lease. of cial backers, including the state of helping sell the electronic blueprint grown only because the state and its company to American Reprographics Ryan C. Jeffers, LEED AP of CBRE. Ohio, have suggested it change other funders have asked it to do course. And the funders, he said, Co. for an undisclosed price in 2007. more, which includes getting the word We appreciate the participation of are making informed decisions. Mr. Birchall said if he could make out about JumpStart, affiliated groups According to Mr. Leach, Jump- one change at JumpStart he would that provide entrepreneurial services Ryan Jeffers of CB Richard Ellis Start regularly submits to the state add to its board more technology and the companies they serve. the number of hours its employees entrepreneurs, early stage tech in- JumpStart’s responsibilities may CapitalWorks, spend working with young tech- vestors and people with expertise in grow again this year: The Third a private equityCapital investment Works, funds firm, nology companies in the region, the the fields that are the group’s focus. Frontier program has increased by has signed a lease. number of dollars the group has “A good, solid board would address about 30% the amount of money it a private equity investment funds firm, invested in area startups and the all the other issues,” he said. will award through its Entrepre- We appreciatehas the signed participation a lease. of number of new dollars — be they in Mr. Leach and JumpStart chairman neurial Signature Program, which Jeffrey D. Cristal, SIOR and the form of sales, investments or Doug Weintraub, both of whom funds programs for entrepreneurs. David Hollister, Vice President grants — that those companies bring have started and sold companies of JumpStart, the hub through which We appreciate the participation of in after working with the nonprofit. their own, agree that only a few of all Northeast Ohio organizations re- of Grubb & Ellis. Jeffrey D. Cristal, SIOR of Grubb & Ellis. Similar organizations that receive the 21 people on JumpStart’s board ceive that money, is putting together money from Ohio’s Third Frontier have started technology companies. a grant application this month to economic development program There are a total of 10 entrepre- secure money from that program. submit the same information to the neurs on the board, when including And if anyone knows of a better Leased and managed by: state. The data play a big role in those who have formed companies way to serve entrepreneurs trying how private consultants rank grant in other industries. Three board to start technology companies, they’re requests those organizations sub- members are investors and eight welcome to become one of the mit to the Third Frontier, Mr. Leach are considered “functional experts” many groups that will join Jump- said. who provide advice in areas such as Start’s application, Mr. Leach said. Chagrin Highlands Ltd. is a joint venture “When scored against everyone finance, accounting and community “If they have an idea … if there development of The Richard E. Jacobs Group, Inc. and else in the state, we rank No. 1 and engagement, according to informa- was ever a time to bring it, it’s now,” have for the last five years,” he said. tion from the organization. he said. ■ For leasingScott information,Technologies, phone Inc. JRES’s John Klayman or Cindy Greiner at 440-871-4800 For leasing information, phone JRES’s www.ChagrinHighlands.com Volume 33, Number 2 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of John Klayman or Cindy Greiner at 440-871-4800 May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. Chagrin www.ChagrinHighlands.comHighlands Ltd. is a joint venture development of The Richard E. Jacobs Group LLC. and Scott Technologies, Inc. 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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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012 Energizer Westlake unit sees the light Water: Cost reports Company expands why Energizer, which already makes LED flashlights, decided from consultants differ consumer products to start developing more products that use the technology. continued from PAGE 3 “I know instances of LEDs, which are essentially estimate that it would cost between By CHUCK SODER computer chips that emit light, $17 million and $19 million to smaller systems con- [email protected] are more expensive than switch water service from Cleveland necting to larger suppliers. incandescent bulbs, but they to Avon Lake Municipal Utilities. I’ve not heard of going in The lighting products divi- also are more efficient and last However, Cleveland hired its own the other direction.” sion of Energizer Holdings Inc. longer. consultant, Arcadis US, an arm of has moved beyond flashlights. They are more versatile as Dutch consulting firm Arcadis NV, – Michael Arceneaux, deputy The big battery maker since well. For instance, Energizer’s and the results were quite different. executive director, Metropolitan last August has released several accent light looks like a new- Arcadis came back with a cost Water Agencies products designed to give the age lamp that uses four rectan- estimate of at least $47 million to company a foothold in a new gular plastic panels instead of a make the switch and an even higher water suppliers but backed off and market: lights designed to stay fabric lampshade. However, estimate if Cleveland were to argue decided to watch Westlake’s effort. in one place. there’s no bulb in the middle. successfully in court its interpreta- Now, he says, if Westlake makes the So far, the St. Louis-based Instead, light emits from the tion of the 21-year-old legal agree- move, “We could soon follow. We’ll company has released a desk panels themselves. The user ment between the two cities. look at any option.” lamp, an under-cabinet light, can turn the light on or off and “The more we looked at this, the Bay Village Mayor Debbie Suther- an accent light, two electric can control its intensity by more we were concerned about land rejects a switch for her candles and a nightlight. Each touching the base. the (switch of service Westlake) community but is concerned about one was developed by the com- “LED technology has enabled MARC GOLUB proposed,” said Cleveland chief potential added costs for her suburb’s pany’s research and development us to get into form factors and Energizer’s lighting products division operating officer Darnell Brown. He plumbing should Westlake reroute center in Westlake, which employs product designs that we never in Westlake is expanding its product said Westlake’s proposed plan “is its pipes, because the two cities’ about 400 people. thought of 10 years ago,” Mr. Mazzola line beyond its traditional line of flash- fraught with a number of risks to the water pipes are a maze of intercon- The lineup of consumer products said. lights. “LED technology has enabled us customer base it would serve.” nections. is just the beginning of Energizer’s The initiative also gives the com- to get into form factors and product The biggest difference between “I am not interested in making a foray into the stationary lighting pany the chance to capitalize on the designs that we never thought of 10 the HNTB and Arcadis analyses are move,” she said. “Cleveland is not market, according to Tony Mazzola, growing demand for LED products. years ago,” said director of technology the cost for a water storage system going to let them get out (without a director of technology for Energizer’s That demand is driven in part by the Tony Mazzola. and for the cost to reroute water legal fight). In this environment, I lighting products division. U.S. government and other coun- lines to suburbs around Westlake. don’t see an overall benefit to the “You will see more,” said Mr. tries that are passing regulations HNTB estimated those costs at $2.1 city of Bay Village.” Mazzola, who works in Westlake. of strategic ventures at Energizer. The limiting sales of incandescent bulbs, million and $3.7 million, respectively; Common ground? The move represents a big change company followed that up in 2010 by said Ms. Bannister, who is leading Arcadis put them, respectively, at for Energizer. The company — releasing through Target a nightlight the new product initiative. $11.2 million and $15.6 million. But there might be an option that which can trace its roots to 1896 — equipped with a motion sensor. Ms. Bannister said the company is Those higher figures, Mr. Brown both sides might find acceptable. commercialized the world’s first The six products that Energizer “very satisfied” with sales of the new said, would result in Westlake water “I would hope that the city of flashlight more than 100 years ago just released, which includes a dif- lineup so far, though she declined to rates at least 18% higher than the Westlake would be able to enter into and has sold them ever since. ferent nightlight, are available exclu- give sales figures. rate Cleveland now charges West- a wholesale purchase agreement It wasn’t until 2009, however, that sively through Amazon.com, though Energizer plans to learn from this lake residents. with Cleveland,” said Westlake city Energizer released its first stationary the company aims to sell them in first product launch and will expand While the two consultant studies councilman Edward Hack. That way, lighting products. First came a series stores eventually, Mr. Mazzola said. its lineup of stationary lighting prod- analyze costs and engineering Westlake would go ahead and set up of fixtures that ran on rechargeable They range in price from $15 to $80. ucts “based on what works,” Ms. options, part of the dispute stems its own water department to handle batteries, which are no longer being Each one uses light-emitting diode Bannister said. from the differing expectations of billing and maintenance but buy its manufactured but helped the com- technology, which has improved and “We have no interest in getting both sides. Westlake is an affluent water wholesale from Cleveland. pany “test the waters” in the space, become more affordable over the into this and getting out of it quickly,” community that expects premium Mr. Brown has said Cleveland ■ said Anne Bannister, general manager past several years. That’s a big reason she said. services. Cleveland’s Division of might agree to that setup. Water serves 1.5 million customers That solution would avoid a costly in 70 communities and must provide legal fight over exactly what costs a service that is affordable to all. Westlake would be responsible for if it were to leave the Cleveland system. Going against the flow The two cities are interpreting Westlake’s proposed move would differently a clause in their service go against the tide of a national agreement that may or may not trend, and mayors in neighboring require five years’ notice before cities are watching this rift to see Westlake can terminate the agree- how to best serve their own residents. ment. Neither Michael Arceneaux, deputy Mr. Brown said the five-year executive director of the Washing- notice clause continues in force; ton, D.C.-based Association of Mayor Clough said the city believes Metropolitan Water Agencies, nor the five-year notification require- Thomas Laughlin, editor of Water- ment ended 10 years after the 1990 works magazine, could recall a water service agreement was signed. similar situation. Both said the Cleveland also argues that trend in the water business is for a Westlake would be obligated to pay consolidation into larger systems, millions of dollars, as much as $39 not away from them. million, for what it calls stranded “I know instances of smaller sys- costs — the cost of water mains and tems connecting to larger suppliers,” pipes paid for with bonded debt that Mr. Arceneaux said. “I’ve not heard has not yet been fully recovered. of going in the other direction.” Bay Village’s Mayor Sutherland is The mayor of North Olmsted, watching that aspect as well. Kevin Kennedy, is watching the trail “I think there would be some Westlake is blazing so he can decide costs,” she said. “Why should we, Bay if his community should follow suit. Village, have to pay for the installa- In 2008, North Olmsted considered tion of (new lines) if Westlake wants “I TRUST NATIONWIDE® WITH MY a feasibility study for a switch of to pull out?” ■ EMPLOYEES’ BENEFITS.” — Dale Earnhardt Jr. GET DAILY NEWS ALERTS FROM CRAIN’S!

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JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 To house new hires, Cohen to expand at U.S. Bank building

times in the past two or three years, Cleveland firm focused on tax, Accounting firm applies new ‘touch’; revenue growth outpaces others ‘You guys are everywhere.’” financial and estate planning for Also, the firm four or five years affluent families, in a deal that By MICHELLE PARK To handle the new and furniture for it, are pro- ago moved away from exclusively added a couple people and a “little [email protected] staffers and to better accom- jected to cost about $1.5 charging by the hour, improving client business,” Mr. Myeroff said. modate current employees million. The company’s satisfaction and affording the firm a He is confident Cohen will make Cohen & Co. needed more space — some of whom are current lease expires in competitive advantage when it bids for more than one acquisition over the before its current growth spurt. working in cubicles, but 2013, but the firm will new work, Mr. Myeroff said. next several years. By next June, the regional would have offices if there commit to its downtown Year-over-year revenue growth of “We think that there are some great accounting firm expects to add 45 to was space — Cohen & Co. location for another 10 14% is pretty exceptional, said firms in the region where the math 50 employees, which would be an is finalizing an agreement years, Mr. Myeroff said. Clarke Price, president and CEO of will be one plus one will be some- increase of about 20% from its existing for more space at its Cleve- Myeroff Cohen executives expect The Ohio Society of CPAs in Dublin. thing much larger than 2,” he said. staff of 230, said president and CEO land headquarters in the to conclude the current “That’s a growth rate that is out- Is the aim to build Cohen into a Randy Myeroff. U.S. Bank building. The plan is to fiscal year, which ends Jan. 31, 2012, stripping the majority of firms,” Mr. super-regional firm — a firm with The firm already has extended occupy a total of 38,000 square feet, with revenues 14% higher than those Price said. “A lot of firms are saying 1,000 or more employees? offers to the new hires, and it’s pos- up about 65% from 23,000 square in the previous fiscal year. That growth they’ve had very good years, but there “No, no, no, absolutely not,” Mr. sible another five to 10 will be hired feet at present, Mr. Myeroff said. is evenly divided among the firm’s tax, are also a lot of firms that are saying, Myeroff said. “We love servicing the by June, too, Mr. Myeroff said. Renovations to the additional space, attest and consulting services. ‘Boy, it’s really tough out there.’” middle market. We love servicing “That’s really strong growth in this Mr. Price doesn’t discount the private companies.” profession,” he said. “Virtually all of impact a strategy requiring everyone About 75% of the company’s new that growth is internal growth. We to have “touches” can have. hires are young professionals, while didn’t do any big acquisitions.” “This is a highly competitive 25% are experienced lateral hires, Debt: ‘You guys are everywhere’ business and a very difficult envi- including Pete Constantino, who Rating agencies keep ronment and a firm that says, ‘We recently joined Cohen from Ciuni & Mr. Myeroff said Cohen positioned are going to reinforce to our clients Panichi, a smaller firm where he watchful eye on finances itself for the growth it’s posting today and others the personality of our worked for more than 25 years. via a “culture” instituted seven or eight firm,’ I think (that) is a very strong Asked why he joined Cohen, Mr. continued from PAGE 3 The school’s plan to revamp some years ago. He said the firm began marketing strategy that could lead Constantino said, “It’s just getting Until now, public-private partner- of its academic buildings via lease requiring all its employees to have a to that sort of growth,” he said. harder and harder for smaller firms to keep adding services. A lot of the ships involving the university had arrangements with private developers certain number of “touches,” which No plans to supersize been reserved for student housing. is a far cry from that of its main rival, range from meetings with clients to clients I was dealing with were grow- The university, for example, in 2004 Kent State University, which looked writing an article and public speaking. Not all of Cohen’s growth has ing, and I could see they needed developed a $22 million residential to finance the overhaul of a number “The growth we see today is really come from existing operations. added services.” complex with Signet Enterprises, an of its academic buildings through a a result of that discipline,” Mr. Myeroff Cohen in November opened an There’s more specialization at Akron-based developer. Likewise, $210 million bond sale that would said. “It’s a result of all of our people office in Milwaukee, bringing its Cohen, he said, and its Florida offices Signet is building a $35 million, 520- be repaid by a slew of student fees. being committed in terms of raising total offices to nine, and last February afford him proximity to clients who ■ bed residence hall on 1.2 acres of That bond sale, which has been the bar. We have been told more acquired The Lipson Group Inc., a live there part time or year round. University of Akron property on stonewalled by state lawmakers Grant Street. who are concerned about rising col- This time, however, the university lege costs for students, would have is courting developers to create new added significantly to Kent State’s academic buildings because several debt load, which sits at about $326 Thursday, April 19, 2012 of the school’s current teaching facil- million. 7:00 - 8:00 a.m. • Breakfast & Networking ities are nearing the end of their Though the University of Akron is 8:00 - 9:30 a.m. • Panel Discussion useful lives — a problem facing many shying away from the bond market The Ritz-Carlton, Cleveland of the region’s colleges and universi- for now, it’s still keeping a watchful ties. Mr. Curtis said such buildings eye on its debt obligations. So is would be financed and constructed Moody’s Investors Service, which has by outside developers on University cautioned the University of Akron in of Akron property and leased back to recent years about its mounting debt. the school over 20 or 30 years. Last spring, the credit rating agency OHIO SHALE BOOM Though he couldn’t provide de- noted that the chances of a rating up- tails about the prospective partner- grade were unlikely in the near term ships, Mr. Curtis said such arrange- and that more borrowing could push ments are the best way to continue the university’s rating downward. Tapping new profits muscling up the urban campus to attract students without risking the The old double-edged sword university’s fiscal health. While Fitch Ratings assigned the When Mr. Curtis arrived in 1998, University of Akron a stable outlook, Shale energy producers project a $200 billion Ohio investment over the next 20 years. enrollment at the University of Akron the school is the only public univer- hovered around 21,000. Last fall, sity rated by Moody’s that carries a Is your companympany prepared to capitalize? enrollment was 29,699 — an increase negative outlook. The University of he attributes to the campus’s dra- Cincinnati and Ohio State University, matic facelift over the last decade. the two universities carrying more DISCUSSION: “What I like to say is that we’ve debt than the University of Akron, developed a new architectural wel- both are assigned stable outlooks. • Current industry status come mat,” Mr. Curtis said about the Also, the Ohio Board of Regents, school’s capital investments. which assigns a score determining • Supplier and investment opportunitiespportunities A decade of debt the fiscal health of each public higher education institution, assigned • Financing and real estate needseeds Under the watch of president Luis the university one of the lowest • Federal and state regulationsns Proenza, the University of Akron scores among four-year colleges and has added 21 new buildings, under- universities — a 3.3 out of 5 for fis- • Long-term outlook taken 18 major additions or renova- cal 2010. That score ties the school tions and created 34 acres of green with the University of Cincinnati space — all at a staggering cost of and makes Central State University $626 million. in Wilberforce as the only institu- While those lofty investments have tion worse off than Akron. SPONSORED BY transformed the campus, they’ve also State officials still are hammering placed the university among the most out the final numbers for fiscal 2011, debt-laden in the state, according to which ended June 30, but University the most recent figures available of Akron officials expect their fiscal from the Ohio Board of Regents. health score to rise modestly to 3.6. The university’s debt load is the “We are on the high end relative to main driver in the school’s pursuit other universities in Ohio” in terms of of creative arrangements with devel- how much debt the school carries, opers to continue the campus over- said David Cummins, the University haul because, as Dr. Proenza put it, of Akron vice president for finance there’s still plenty to be done. and administration and chief finan- “I don’t see a point where we’ll cial officer. “You have to be careful. stand still,” he said, “but how fast It’s a double-edged sword. You can we’ll develop (new buildings) de- use debt in a way to significantly pends on the rate of growth for the transform the campus, but you have www.CrainsCleveland.com/breakfast university.” to manage it well.” ■ 20120109-NEWS--8-NAT-CCI-CL_-- 1/5/2012 4:06 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012

RETAIL AND OFFICE SPACE AVAILABLE Export to Nigeria? Yep, it’s safe the actions of a few, he said. helps businesses determine their North Olmsted group “We want Nigeria to be known for best overseas markets, and also pro- the good things,” said Mr. Kareem, vides legitimacy checks on buyers, aims for better access a native of Nigeria and the owner which helps to guard against the of two North Olmsted companies, scams that have contributed to to African country Biotronics Inc. and Tech-Consultants Nigeria’s notoriety. .org. “We think it’s a great thing,” Ms. known for scammers Launched last March, the chamber Whitney, office director at the has received calls from U.S. busi- Commercial Service, said of the By MICHELLE PARK nesses as far south as Florida, Nigeria-USA chamber. “Nigeria is a [email protected] according to Mr. Kareem, who said great country to export to.” an Atlanta business owner attended As with any country, though, A North Olmsted group is bent on the chamber’s International Trade Nigeria is not right for all compa- 6)2I¿FHRQWKHQG)ORRU boosting exports between here and & Investment Summit at Quicken nies. It’s particularly lucrative for RESERVE SQUARE 6)5HWDLORQ(DVWWK6WUHHW Nigeria. Loans Arena last month. companies in the oil and gas industry 1701 East 12th Street 6)DQG6)5HWDLO The Nigeria-USA Chamber of This summer, the chamber will — something Pipe Line Develop- RQWK6WUHHW Downtown Cleveland Commerce aims to help American host a week-long program in Nigeria ment Co. in Westlake knows first- 1HZO\8SGDWHGDQG5HQRYDWHG businesses sift through trade issues that will conclude with a reverse hand. www.reserve-square.com ,QGRRU3DUNLQJ'U\&OHDQHU0DUNHW and identify business opportunities trade mission, through which a The company, which makes repair &DU5HQWDO5HVWDXUDQWV in the African country, and vice versa. group of Nigerian business people products for pipelines, has been &217$&7 “Whenever people hear the word, will travel to the United States for exporting to Nigeria since 1984, *)&R\OH,,,6,25 ‘Nigeria,’ all they ever think about matchmaking with companies here. with up to $4 million of product %HQQHWW-0RUULVRQ&&,0 are the negative things that come out Susan Whitney said she and her exported there annually, said Kim 3KRQH ZZZRVWHQGRUIPRUULVFRP of Nigeria — scams, insurance,” said staff at the U.S. Commercial Service Smith, marketing manager. Lee O. Kareem, chamber president in Cleveland, an agency of the U.S. “It’s a great place to do business, and CEO and one of the group’s five Department of Commerce, support but first you must do your home- founding members. But those are the local effort. Her organization work,” Ms. Smith said. ■ HR Academy Webinars Fix: Shop offers Clinic many advantages Sponsored by the Ohio Chamber of Commerce Interactive webinars from the Ohio Chamber provide an opportunity continued from PAGE 1 sclerosis but also to design better impart. While an auto supplier prosthetic devices. The modeling might have a robot compressing a to learn and discuss important human resource issues with top experts doctors, but also to take doctors’ ideas and turn them into new med- system even conducts analyses on shock absorber hundreds of thou- from the comfort of your desk. This program has been submitted to ical devices. the throwing motion of baseball sands of times to test its perfor- the HR Certification Institute for review and also to the Ohio Supreme “We are a design group that inte- pitchers and golfers’ swings. mance, the Clinic’s robot flexes an Court for CLE credits. Whether you are a human resources professional grates and works with the physicians In another lab, researchers and artificial joint over and over again or business manager, these webinars will help you further develop to develop their ideas — and not engineers work with a special for the same reason. metal called Nitinol, a relatively new And, of course, there’s the your HR expertise and abilities. just physicians, but anyone within the Clinic,” said Karl West, director alloy that has amazing abilities when machine shop, where Mr. Shawan Upcoming topics include: of the Clinic’s Medical Device Solu- it comes to elasticity and shape and his crew of eight work on a tions unit. memory. The metal is non-reactive little bit of everything, from producing January 11, 10 to 11:30 a.m. – Think Before You Click – Strategies for For example, a Clinic surgeon with body tissues and extremely tools and fixtures for the Clinic’s Managing Social Media in the Workplace. CLE approved. recently came up with an idea for a flexible, but it’s also “springy,” Clinic use on its own patients to manufac- January 25, 10 to 11:30 a.m. – Wage and Hour 101. CLE approved. new stent that could be used in researchers say, and that quality turing the bits and parts that allow heart surgery. Taking the technical makes it perfect for devices such as the other parts of the Medical February 8, 10 to 11:30 a.m. – NLRB – Employer Free Speech and How the equivalent of a cocktail-napkin cardiovascular stents, in which it’s Device Solutions unit to function. NLRB/NLRA Applies to Nonunion Employees. CLE pending. design, Mr. West and his staff turned used to make a flexible frame to The payoff for the Clinic takes To register go to www.ohiochamber.com or contact it into three-dimensional drawings hold open blood vessels. many forms. Immediate access to and, eventually, a stent that the Next door, a computer bio- repair and fabrication work for Michelle Donovan [email protected] Clinic can use internally and possi- modeling lab would look familiar to medical tools and devices is a or 614-228-4201 bly can market to other hospitals anyone who has used a computer- benefit that’s tough to value in dollars; and surgeons, Mr. West said. aided design (CAD) system, except other efforts within the unit provide Over in the machine shop, machin- the Clinic uses its system to work with the Clinic with more direct financial ists such as Anthony Shawan work more than just metal and plastic. and strategic benefits, such as new on prototypes for new devices, For instance, technicians can patents and research grants. For though they also do more mundane work up a three-dimensional model instance, some of the Clinic’s work work that is just as critical to patient of a human heart, complete with on Nitinol is financed by a $3 million outcomes, if not more so. the plaque that’s found in the blood grant from Ohio’s Third Frontier “Sometimes, things break during vessels via medical imaging tech- program. nology. Mr. West said they then can surgery,” Mr. Shawan said. On more Setting the pace than one occasion, Mr. Shawan said, print out their model using a 3-D he has repaired or altered a printer. The result is a life-size The existence of a hospital-based surgeon’s tool while an operation model of a patient’s heart, with the operation with all the research, was under way — a task that plaque a surgeon needs to remove design, testing and fabrication requires a faster turnaround than highlighted in a different color than capabilities that a medical device even the most efficient automakers the healthy tissue. manufacturer might have is a smart demand of their suppliers. “They know it, because they see strategy for the Clinic, said Mark “We’ve done stuff in less than it in 3-D before they even go in (for Coticchia, founder of Red Wind half an hour, including machining surgery),” Mr. West said. Innovations, a Cleveland firm that advises universities, hospitals and and sterilization. We’re literally Parts put to work running,” Mr. Shawan said. others on economic development In another section of the unit, opportunities centered around A model of efficiency researchers test artificial joints, medical technologies. All told, 32 people work in Mr. spinal implants and other mechan- As the former vice president of West’s unit. They’re a mix of ical devices that go into the human research for Case Western Reserve seasoned machine shop veterans body. Those devices must be tested University, Mr. Coticchia adminis- and tech-savvy, fresh-faced college the same way auto parts are tested, tered federal grants from the graduates, and they perform an which means they must be put National Institutes of Health, equally diverse set of tasks. through wear and tear as close as including some that went to the In one room, subjects with reflec- possible to what they would be sub- Clinic, and he’s familiar with the tive markers at strategic points on jected to in the real world. scope of activities in which the their bodies provide data for a “gait In the realm of prosthetics and Clinic engages. lab,” where computers take the implants, such work is messy. “The Clinic is really pushing the information and technicians track Technicians spend a good deal of envelope as far as folding in proto- and model a patient’s movements. their time preparing real human type development and product Using computer modeling, the lab feet, shoulders and other cadaver development activities into their works with patients suffering from parts so they can have the devices commercialization effort,” Mr. neurological conditions or with attached to them and then be Coticchia said. “I’m not aware of amputees. It not only helps to driven by robots to mimic the any other hospital entity that’s taken research conditions such as multiple stresses a live human body would it as far as the Clinic has.” ■ 20120109-NEWS--9-NAT-CCI-CL_-- 1/6/2012 2:34 PM Page 1 20120109-NEWS--10-NAT-CCI-CL_-- 1/5/2012 4:17 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Real deal he new year is a great time for investors to assess which assets to keep in their portfolios and which ones to dump. It’s good to know Tthat Cuyahoga County finally appears ready to go through the same process with the dozens of buildings that it owns and leases to house its personnel. For years, members of the old county Board of Commissioners talked about consolidating in fewer buildings the offices that various departments of county government occupy. However, that’s about FROM THE PUBLISHER as far as the commissioners ever got — oh, except for their questionable purchase in 2005 of the old Ameritrust headquarters in downtown Cleveland. You About time to let Cordray do his job know, the complex with the empty, 28-story office tower, the floors of which are too small to house egular readers of this column know we will never again be led to the too much unchecked power to an indi- efficiently a multi-story tenant such as the county. know I often criticize the antics brink of wholesale financial collapse by vidual. Most have no problem with Mr. A dubious and costly move, that one — the kind that foul the political systems in a few greedy individuals and financial Cordray, understanding his reputation our city, region, state and nation. institutions. That’s what inspired the as a solid attorney general and public that contributed to voters finally giving the boot to RIt’s often based on my concern that we law creating the Consumer Financial servant. the old guard of county leadership by creating a new have too many people in office because Protection Bureau — the agency Mr. But because they couldn’t muster the form of government based on a single executive and it’s their job and not that public service Cordray was picked to lead — in the first votes to change what the law made pos- an 11-member council. is their calling. place. sible, they’ve been conducting phony Now, only a year after assuming office, county That said, I found President It doesn’t take a financial “sessions” of the Senate in which a Executive Ed FitzGerald and council members have Obama’s visit here last week BRIAN engineer to understand that handful of members appear in order to set the table for a serious reduction in the county’s gave me a moment to reflect on TUCKER widespread mortgage fraud sound a gavel and then end the session real estate costs thanks to a third-party evaluation politics in a more complicated was perpetrated by cheats and minutes, if not seconds, later. The goal is of the government’s space needs. sense. then magnified by financial to stop the president from making an Clearly, this was a campaign institutions eager to turn massive appointment during the typical holiday Allegro Realty Advisors Ltd. late last month deliv- trip, with the president appearing numbers of home mortgages — recess. ered to county officials a report that indicates the at a rally at Shaker Heights many of them held by folks who They have some valid concerns, but county could save $91 million by exiting 22 buildings, High with Richard Cordray, his were never qualified to borrow the place to have dealt with them was or one-third of the properties it now occupies. As choice for America’s first at such levels — into tradeable during the legislative sessions around part of its report, Allegro recommended the county consumer-finance watchdog securities. the Dodd-Frank Act that created this sell both its 57-year-old administration building, and a native son (and former Now, cities such as Cleveland agency, not now. Dodd-Frank was an which sits across from the under-construction Ohio attorney general). Using the power and Detroit are wasting money they attempt to avoid future crises, much like Cleveland Medical Mart and Convention Center, of a “recess appointment,” the president can’t spare in an effort to tear down fore- the Glass-Steagall Act of 1933, enacted installed Mr. Cordray, who’s been kept closed and abandoned houses in order after the Great Depression. and the aforementioned Ameritrust complex, which from starting his work by Republicans in to save deteriorating neighborhoods. So the courts now will decide the was deemed to be unfit to serve as the county’s new the Senate upset with the composition of Congress passed this law creating the issue, and it won’t likely be resolved HQ after $40 million was sunk into the property. the agency he’ll be leading. consumer finance protection agency, soon. In the meantime, here’s hoping Any consolidation of the county’s operations This is where it gets complicated. but Republicans in the Senate don’t like that Mr. Cordray is able to do the work likely will take years to execute. However, the return First, it’s clear Americans need to how it was structured, claiming it gives for which he is so sorely needed. ■ on investment for the $220,000 the county paid Allegro for its report could be tremendous — and makes an outsider wonder why county leaders of the PERSONAL VIEW past never undertook such a comprehensive review. Thankfully, the old regime is gone and the new leadership that has replaced it is transfixed on Prioritize value, not volume, in health care bringing down the cost of government rather than By DR. TIM KOWALSKI Dr. Kowalski is chief medical officer of that too frequently don’t deliver the lining landlords’ pockets with county dollars. It Progressive Insurance and president of the value and outcomes we need. We want continues to be a change for the better that’s off to a usinesses that produce paint or Health Action Council Quality Forum. care that focuses on health, not sickness; promising start in 2012. provide legal services never that is safe and coordinated; that is laser- planned to be at the nexus of for employers’ health insurance purchases, focused on the needs of our employees efforts to fix a health care system fashioned employers’ foundational role and their families; and that optimizes the Bin need of a makeover. But as employers, in our health system. vitality of our workers and their focus on Good for GAR that’s where we find ourselves. As the For most members of Health Action their jobs. And we want this at a price that biggest purchasers of private health Council Ohio, the region’s business group doesn’t continue to blunt the economic ob Briggs will be a tough act to follow after insurance, we’ve got a big stake in making on health for self-insured public and vitality of our employees’ families and 15 years as president of the GAR Foundation. health care work like we all want it to. private employers, the business of pro- Northeast Ohio. However, the baton of leadership is passing Economists will tell you that Americans’ viding efficient and effective health care Employers have tried to tackle the cost into capable hands with the ascension of reliance on employer-sponsored health is not a core competency. But as Harvard issue for more than 20 years. We spurred R insurance was an accident of history. It University’s Dr. David Blumenthal so health plans to create managed care in Christine Amer Mayer as head of the Akron-based began with wage controls imposed in plainly put it in a 2006 paper published the early 1990s; to pay physicians for foundation. 1942, as the country was consumed by in the New England Journal of Medicine care that meets benchmarks for quality; We tip our hat to Mr. Briggs, who also has been a war production. Because fringe benefits on the development of our employer- and to contract with so-called ‘disease force behind the collaborative foundation initiative were exempted from government caps, based system, “He who pays the piper management’ vendors with call centers known as The Fund for Our Economic Future, and employers started offering health insur- calls the tune.” that dial up enrollees who are pegged to wish success to Ms. Amer Mayer. ance to compete for scarce labor. Other As employers, we know we’re paying be at risk of an avoidable hospitalization, arcane developments, including subsidies ever-rising health care costs for services See VIEW Page 11 20120109-NEWS--11-NAT-CCI-CL_-- 1/5/2012 3:43 PM Page 1

JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

THE BIG ISSUE Are you more or less excited about voting in this year’s presidential election than you were in 2008, and why?

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com

Publisher/editorial director: Brian D. Tucker ([email protected]) Editor: Mark Dodosh ([email protected]) Managing editor: Scott Suttell ([email protected]) Sections editor: Amy Ann Stoessel ([email protected]) CAROL QUIGLEY MARY BORUCKI SHELBY CREAGER NORENE VAN LEER Assistant editors: Lyndhurst Strongsville Cleveland Shaker Heights Joel Hammond ([email protected]) Sports I’m less excited because I don’t think No, (less excited) because the I guess I’m less excited — because I’m more nervous about voting Kathy Carr ([email protected]) my choices are ... so far, I’m not candidates suck. Get somebody in the last election was my first year because I would hope that we have Marketing and food impressed, that’s all. there who’s going to do something voting in a presidential election. Also, the same amount of drive to get Senior reporter: for the country and not give all the last time everyone was very excited people out to vote like we did in Stan Bullard ([email protected]) money away. about change. There was obviously a 2008. I don’t want to see it go down; Real estate and construction Reporters: huge marketing campaign making us I want to see voter participation go Jay Miller ([email protected]) more excited about change, but up. Government there was a lot more hope that there Chuck Soder ([email protected]) was going to be major change. Technology Dan Shingler ([email protected]) Manufacturing ➤➤ Tim Magaw ([email protected]) Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Brunswick outfit hopes tiny parts lead to big things Cartoonist/illustrator: Rich Williams Marketing/Events manager: department, who has worked with customers, but one of the parts he Christian Hendricks ([email protected]) Precision Made Products’ new metal injection Mr. Daneshvar, has lauded the new recently displayed was for use in Marketing/Events coordinator: molding method has potential in med device field process for its engineering flexibility. endoscopes, and he confirmed the Jessica Snyder ([email protected]) A reduction in shrinkage allows customer for it was Mentor-based Advertising sales director: Precision Made to produce parts to US Endoscopy. Mike Malley ([email protected]) By DAN SHINGLER manufacturers mold plastic. Once tighter tolerances than companies US Endoscopy has been in high- Account executives: Adam Mandell ([email protected]) [email protected] parts are cast they are put into high- using other MIM methods, Mr. growth mode in recent years, and Nicole Mastrangelo ([email protected]) temperature ovens for a process Daneshvar said. The ability to always is looking for better ways to Dawn Donegan ([email protected]) Majid Daneshvar’s efforts to called sintering, in which the metal co-sinter parts, on the other hand, make its products, said its chief build a medical device company in particles fuse together to form a opens up the possibility of producing operating officer, Tony Siracusa. Office coordinator: Toni Coleman ([email protected]) Brunswick are bearing fruit, the precise and durable part. It can be parts that were either too expensive Mr. Siracusa said it’s too soon to inventor says, as he hires people done with steel, titanium or a host to make with other methods, or say how well Mr. Daneshvar’s parts Digital strategy and development manager: and works his way into supply chains of other metals. which couldn’t be made at all. will work for his products — the two Stephen Herron ([email protected]) with his metal injection molding Metal injection molding isn’t For example, Precision Made can companies still are working on technology. new, but Mr. Daneshvar said he has make a tiny metal part with chan- development. But the technology’s Web/Print production director: Craig L. Mackey ([email protected]) “Our name is starting to get developed a formula and process nels, reservoirs or other engineered promise was enough to spark US Production assistant/video editor: around,” Mr. Daneshvar said. that enable him to do it differently spaces inside, where it would be Endoscopy’s interest, especially Steven Bennett ([email protected]) Mr. Daneshvar’s company, Preci- and better than his competitors. impossible to do traditional ma- because it was coming from a local Graphic designer: sion Made Products, is still small — More specifically, he said, he can chining. It does so by casting two company, Mr. Siracusa said. Lauren M. Rafferty ([email protected]) only 18 employees — but he said it’s make parts that don’t shrink as parts with half of the desired chan- “We are working with Majid to growing and that its technology has much as other MIM parts during nels and cavities in each one, Mr. leverage their technology into our Billing: Susan Jaranowski, 313-446-6024 the capability to make a big splash the sintering process. And, he said, Daneshvar said. When they are small but precise components,” Mr. ([email protected]) with tiny parts, especially in the field he can take two “green” parts sintered into a single piece, that Siracusa said. “We always strive Credit: of medical devices. Mr. Daneshvar, straight from the molds, put them part then has those features on the to partner with our local suppliers Todd Masura, 313-446-6097 a polymer chemist by training, said in the oven together, and sinter inside. first.” ([email protected]) he has come up with advances in them into one, seamless part. Mr. Daneshvar greets visitors with Mr. Daneshvar not only would Audience development manager: the field of metal injection molding The technology was impressive a plethora of parts, some of them so like to count US Endoscopy among Erin Miller ([email protected]) that allow him to do things his enough that Precision Made Prod- tiny they easily fit on a fingernail, his customers, but would like to competitors can’t. ucts early this year won a National demonstrating how the process can emulate the company outright, he Crain Communications Inc. Metal injection molding, known Science Foundation grant for make components for equipment said, noting that he, too, would like Keith E. Crain: Chairman as MIM, involves mixing powdered $150,000 to further develop it. ranging from firearms to dental to identify and make complete Rance Crain: President metals with other agents, such as a Jim McGuffin-Cawley, chairman of instruments. products that he can bring to market. Merrilee Crain: Secretary polymer, and then molding the Case Western Reserve University’s Mr. Daneshvar is tight-lipped “I don’t want to just make parts Mary Kay Crain: Treasurer mixture into shapes the way other Materials Science and Engineering about both his processes and his for others, he said. ■ William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing View: Funding available for new health care model Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing continued from PAGE 10 program that could bring $40 with an organization called Better the attention of the U.S. Secretary among other approaches, all with million to $60 million annually to Health Greater Cleveland, a regional of Health and Human Services, the G.D. Crain Jr. Founder (1885-1973) varying degrees of success. the region. These federal dollars, alliance of purchasers, payers and federal agency that oversees federal Mrs. G.D. Crain Jr. Still, we have continued to pay from the Center for Medicare and providers that has led the effort to health care programs. Chairman (1911-1996) for volume rather than value — Medicaid Innovation, would help coordinate with health plans that How can you help us harmonize Subscriptions: In Ohio: 1 year - $64, 2 year - $110. something we typically avoid in capitalize implementation of the do business in Northeast Ohio. our tune? Write your health plan to Outside Ohio: 1 year - $110, 2 year - $195. Single copy, other facets of our businesses. Patient Centered Medical Home, a Thanks to Better Health’s estab- tell them that you expect their $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send Rarely have we joined forces to use health care delivery model that in lished programs, we have the infra- support for Northeast Ohio in its correspondence to Audience Development Department, our purchasing weight to impact a other communities has reduced structure we need to succeed. Better Comprehensive Primary Care Ini- Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to custom- single health care market. Now, 70 cost and improved care for patients Health reaches more than 500 tiative proposal. Together, we can [email protected], or call 877-812-1588 years after employers first took on of primary care practices. primary care providers in 50 prac- reward value over volume, quality (in the U.S. and Canada) or (313) 446-0450 (all other health insurance, we have a unique As employers, we’ll be able to tices of 10 health systems, which outcomes over treatment of inci- locations), or fax 313-446-6777. opportunity to come together and leverage federal dollars to get the have demonstrated improvement dents and provide optimal vitality Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau call the tune in Northeast Ohio. health care we want and the value in care and outcomes for more than for our employees and our commu- of Circulation By Jan. 17, 2012, Northeast Ohio that will benefit our companies, 120,000 people with chronic condi- nities in Northeast Ohio. We can will be nominated by virtually all our employees and the regional tions. Its leadership in health infor- use our accidental influence in the region’s health plans to be economy. mation technology — an essential health care to purposefully chart a selected as one of a handful of com- To respond to this opportunity, tool in providing coordinated and future of better health and lower munities to participate in a federal we have been working together and patient-focused care — has drawn costs. ■ 20120109-NEWS--12-NAT-CCI-CL_-- 1/5/2012 1:45 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012

Add Your Company Logo To Kent aims for versatile tech specialists Contact Keeper Products Robert Walker, the school’s director, Dr. Walker maintains Kent State Digital sciences school said the idea is to teach students is the first school in the country to how a variety of cultures, ethnic offer such degrees, noting the master’s combines disciplines groups and business organizations degree would be of particular value use technology differently and how to computer science graduates By TIMOTHY MAGAW they can solve problems in those looking to apply more appropriately [email protected] settings. their technical and critical thinking “(Students) need to be exposed to skills in the business world. Kent State University is looking different types of people and be Also, because the new digital to mold an army of digital super exposed to how they think,” said Dr. sciences school is made up of the employees with the creation of a Walker, also a professor of computer university’s existing resources, Kent new academic unit that’s a mashup science. “Putting them in a bubble State hasn’t had to invest in hiring of offerings from various disciplines. and not letting them talk to people faculty to get the program off the Dubbed the School of Digital who don’t look or think like them ground. Sciences, the academic unit that isn’t going to be very useful.” “The thing that’s amazing about launched last fall combines courses Dr. Walker said a central piece of this from an academic perspective from computer science, visual com- the program is its bachelor’s and is that we’ve torn down a lot of silos to munication design, journalism and master’s degrees in enterprise make this happen,” said Dr. Stanley communications to give students a architecture — a business concept Wearden, dean of Kent State’s Col- broad understanding of the digital that focuses on how to use informa- lege of Communication and Infor- contactkeeper.com 440-498-7200 sciences. tion technology to enhance collab- mation. “It’s great to see how faculty Exactly what “digital sciences” oration and efficiency throughout can work together and students can Keep Business Cards means still is a bit amorphous, but an organization. draw on all these disciplines.” ■ and Notes Together GOING PLACES JOB CHANGES Jennifer Ashbee to senior billing managers; Jessica Roe to senior EDUCATION credentialing specialist; Jennifer Dimassa to coder II; Amanda Still- MUSIC SETTLEMENT: Theresa A. man, Joan Bible, Barbara Hutzell, Schneider to manager of annual giving. Karen McArthur, Beverly Klimas, Krajnak Puskas Juris NOTRE DAME-CATHEDRAL LATIN Kristine Woodcock, Bonnie Esh- SCHOOL: Keven S. Krajnak to baugh, Linda Anderson, Caroline major gifts officer. Urgo-Licursi, Lynnette Szabat, UNIVERSITY OF AKRON: Judit Christina Gasser, Ranita Mitchell, Puskas to the Austin Chemical Co. Christina Mathis, Renee Genet, Chair holder, College of Engineering. Denise McCartney, Samantha Laslo, Diane Clare, Shelli Kelling, ENGINEERING Doreen Meredith, Sue Panek, URS CORP.: Brandon Davis to Heather Hoza, Susie Gatian, director, industrial manufacturing, Jeanette Danczak, Virginia Neff, Godios Bautista Evans Industrial Process Group. Jennifer Matozel and Wendy Herchek to senior billing specialists. FINANCE GOVERNMENT CHASE: Chet Shedloski to vice president and banker for community CITY OF CLEVELAND: James development real estate lending, DeRosa to commissioner of real estate. Ohio, Kentucky and West Virginia. HEALTH CARE FIRSTMERIT CORP.: Joseph J. if you are paying more than Varckette and Brian E. Wells to UNIVERSITY HOSPITALS AHUJA Sponseller Sanek Kaminskas vice presidents, business banking. MEDICAL CENTER: Susan V. Juris to president. $10 per foot, you are overpaying. of advocacy; Julie Robie to managing FINANCIAL SERVICE attorney, consumer practice; Anne BRUNER-COX LLP: Laura A. King LEGAL Sweeney to managing attorney, to tax director; Tamara A. Lukes to BELKIN GARFIELD LLC: William K. community engagement. assurance services supervisor; Smith to of counsel. WESTERN RESERVE HISTORICAL Robert M. Ryan to tax manager; GALLAGHER SHARP: Jeremy V. SOCIETY: Clio to digital curator. Erin M. Simone and Francis A. Farrell and Justin L. Monday to Turocy to assurance services senior associates. UTILITY associates; Jason A. Wahl to tax MEYERS, ROMAN, FRIEDBERG & supervisor; Heather L. Ackermann FIRSTENERGY NUCLEAR OPER- LEWIS: Steven P. Dlott to partner. and Kyle A. Bowers to assurance ATING CO.: Vito A. Kaminskas to services associates; Jesse P. Kepple SHIFRIN NEWMAN SMITH INC.: site vice president, Perry Nuclear and Manbir Sidhu to tax associates. Christopher N. Godios to partner. Power Plant. CORRIGAN KRAUSE: Michael D. TAFT STETTINIUS & HOLLISTER Toncar to controller; Samantha LLP: Philip R. Bautista to partner. BOARDS VanArnhem to firm administrator; THOMPSON HINE LLP: Deborah ASSOCIATION OF FUNDRAISING Patrick J. Lang to associate. Z. Read to managing partner. PROFESSIONALS, CLEVELAND PEASE & ASSOCIATES INC.: CHAPTER: Beth Brown (Kimball Jennifer Barnes to partner; Tina MARKETING Consulting LLC) to president; Tim Moore to vice president, operations; ADCOM COMMUNICATIONS INC.: McCormick to president-elect; Matt McGowan, Joe Rokas and Caroline Evans to associate art Sharon Martin to secretary/treasurer; Kathleen Moran to supervisors; Will director; David Sponseller to senior Paul Pawlaczyk, Marge Zellmer, Fugate, Dan McGoun, Jessica digital production artist; Daniel George Graham and Jerry Jindra Sokol, Daniel Papadelis and Lauren Sanek to assistant account executive. to vice presidents; Carol Carbary to Yurcak to senior accountants; immediate past president. Allison Parsons to office manager. DONER: Gretchen Hentemann to • downtown youngstown vice president, brand leader. NATIONAL CENTER FOR CREATIVE RETIREMENT SOLUTIONS: Joyce AGING: Linda Noelker (Benjamin HITCHCOCK FLEMING & ASSOCI- • walking distance to university Filipiak to associate financial consul- Rose Institute on Aging) to president. and courts tant. ATES: Kelly Wanstrath to senior research manager; Lauren Reed to • central business district SS&G HEALTHCARE SERVICES senior account planner; Jennifer AWARDS • on-site fiber-optics available LLC: Erline C. Franks to associate Keenan to agency administrator. director; Andrea Driscoll, Cheryl L. AMERICAN INSTITUTE FOR KAREN SKUNTA & CO.: Jennifer • naming rights now available Chianello, Robert Hague and Sonda MEDICAL AND BIOLOGICAL Teeter to client services and business brokers protected Kunzi to senior managers; Jan ENGINEERING: Liming Dai (Case manager. Lasker, Kimberly Ivery, Linda Western Reserve University) was Falkenstein and Tamiya Williams named a Fellow. (330) 480-0804 to senior consultants; Larry Bitting NONPROFIT downtown youngstown, ohio and Mark Parmelee to IT senior LEGAL AID SOCIETY OF CLEVE- Send information for Going Places to associates; Arlene Kelly and LAND: Tom Mlakar to deputy director [email protected]. 20120109-NEWS--13-NAT-CCI-CL_-- 1/5/2012 2:21 PM Page 1

JANUARY 9 - 15, 2012 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 14 TAX TIPS: STATES EYEING REVENUE FROM CLOUD. SMALL BUSINESS INBRIEF

■ ARE YOU GETTING AHEAD?: On Page 14 this week, we’re debuting a new feature called “Getting Ahead,” which will run in each month’s Small Business section. Targeted to early and mid-career professionals and others in career transition, the goal is to provide a regular source of information for those interested in taking the next step to advance their professional and personal standing within the community. (There may even be a little insight for those who are more established.) Each feature will include a story, such as this month’s on how to form and cultivate a relationship with a mentor; a Q & A with a leader; and sources for building one’s network both online and in person. If you have suggestions for future Getting Ahead stories, Q & A subjects or networking opportunities, please email sections editor Amy Ann Stoessel at [email protected] or call 216-771-5155.

■ ADVISER UPDATE: In an adviser column in the Dec. 12 Small Business section of Crain’s Cleveland Business, James Kurek, a partner at Fisher & Phillips’ RUGGERO FATICA PHOTOS Cleveland office, Kevin Busta (left) and Michael Carreras have teamed to run a business, Kevin Busta LLC, that sells Mr. Busta’s industrial-style artwork. Mr. Carreras serves as the indicated that the company’s CEO. National Labor Relations Board would require all employers to Kurek post a Notice of THE TROUBLE WITH TEAMS Employee Rights, effective Jan. 31. This poster By CHUCK SODER each other, Mr. Manning said. states that employees have the right to [email protected] Business partnerships fraught with potential However, if one partner has a act together to improve wages and low tolerance for working long working conditions, form, join and ttorney Frank Manning pitfalls, but can work with proper planning hours or taking risks, the other assist a union, bargain collectively and spent the morning of should hire that person as an refrain from these activities. It also Dec. 2 in two meetings employee, he said. provides examples of unlawful conduct. with two unrelated “Being an owner of a business Since the column’s publication, the clients.A Both of them were trying is a lifestyle, and being an NLRB has moved the compliance date to get rid of their business partners. employee is a job,” he said. to April 30. The NLRB stated that the Over the past 20 years, meet- Even assuming both potential regulation was pushed back to April to ings such as those have helped partners have complementary allow for enhanced education and turn Mr. Manning into a big skills and a similar commitment outreach to employers, particularly skeptic of business partnerships. to the business, Mr. Manning those who operate small and medium- It isn’t that they can’t work. said, they still need to take a few sized businesses. This rule applies to Partners who complement one more steps: They should define all private-sector employers subject to another and plan ahead can their roles, decide how much the National Labor Relations Act, achieve a lot together — and time each person will put into excluding agriculture, railroad and even remain friends, according the business and create a buy- airline employers. to Mr. Manning and a few other sell agreement. Should one part- local business people. ner want to buy out the other, However, loads of people dive the agreement would spell out into partnerships without much the terms of the deal. ■ A NEW FINAL RESTING PLACE: planning, said Mr. Manning, Creating such an agreement Marlene Medley of Bay Village has who focuses mainly on business ahead of time is easier than purchased a franchise of the Eternal law at Manning & Manning Co. hammering out a deal between Ascent Society, the first of its kind in LPA in Mentor. two bickering partners, Mr. the Cleveland area. The business, The partners usually like each The duo opened a storefront in Tremont in September. Manning said. which is based in Crystal River, Fla., other, though. At least in the begin- “If you haven’t done that — and offers a patented process for the ning. most people don’t — it is so costly scattering of cremated remains by “They fail to consider what have complementary skills that less conflict, he said, because the to pry things apart,” he said. releasing them in a giant balloon with a happens when the honeymoon is could benefit the business. lender won’t try to weigh in on Learning from his mistakes 5-foot diameter. The biodegradable over,” said Mr. Manning, who him- The third reason is the only good day-to-day business decisions. balloon is inflated with helium, which is self has been part of both good and one, in Mr. Manning’s eyes. Even if the company goes out of Andy Halko admits he made big released after a private family service. bad business partnerships. Even the second is questionable: business, the lender will be happy mistakes when he decided to go During the balloon’s ascent it expands Mr. Manning said people tend to If someone needs money to start a as long as the borrower finds into business with a college friend and, at a height of almost 6 miles, it go into business together for one of business, Mr. Manning said, the another way to make payments, he in 2002. freezes and fractures, scattering the three reasons: They like each other; person first should try to borrow it, said. The two men each threw in a ashes. one person wants to build a company either from a bank or from someone By contrast, partners with little bit of money to start a web and the other has money; or they they know. That method produces complementary skills may need See TEAMS Page 15 20120109-NEWS--14-NAT-CCI-CL_-- 1/5/2012 2:21 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012 SMALL BUSINESS GETTINGAHEAD Your monthly guide to getting to the next level in your career. Cloud’s tax implications Building relationships: The mentor-mentee bond could weaken benefits By AMY ANN STOESSEL even other industries. They should begin a mentoring program was State authorities analyzing newer technology [email protected] be accessible, knowledgeable, the result of a survey the group responsible and optimistic. conducted in late 2010. mall business owners may be PETERDEMARCO inding a mentor is all about She did offer one exception: “We wanted to connect pairs intrigued by the possible building connections — Stay away from the boss. that otherwise might not have benefits of moving their now and for the future. Once a potential adviser has been crossed paths,” said Mr. Lynch, computer-related activities “It’s nice to have someone identified, Dr. Lurie suggests whose program currently links 13 Sinto “the cloud,” but they should be Fin your corner,” said Sunny K. reaching out with a casual, brief experienced nonprofit professionals aware that tax authorities are Lurie, the CEO of Beachwood- introduction, asking questions about with 18 young professionals. intrigued by the possibilities based Fast Focus Careers, who has their field, eventually broaching the The pairings are expected to around taxing in the cloud as well. been in the career training and possibility of furthering the rela- meet once a month for at least 60 Tax authorities at all levels are on coaching arena for 20 years. She tionship. For example, such a propo- minutes. “We’re hoping the rela- a constant hunt for creative new TAX TIPS started her business in 2007, and sition could be phrased this way: tionships formed persist,” he said. ways to generate tax revenue to today helps people at all levels, “I was interested to see if you can Meanwhile, Nicole M. Capretta, cover disturbing shortfalls in fiscal especially those looking to make a act as an adviser for me periodically.” a second-year student at Cleveland budgets. State tax authorities in user of the service, and to the busi- career change. Finally, define clear-cut expec- State University’s Cleveland-Mar- particular are showing an increasing ness and occupancy tax imposed “I think it will stretch your ability tations for the relationship, and shall College of Law, already has interest in how they might be able on the provider. to work through a challenge,” said keep in mind the setup should be discussed the ups and downs of to stake a claim to tax revenue by SaaS enables a consumer to Dr. Lurie of having a mentor. a two-way street, with the mentor the interviewing process with her looking at cloud-related activities access the provider’s software “People really do get stuck a lot … receiving some sort of benefit as mentor through the Women in as taxable transactions. through various client devices, so they don’t see what else is possible.” well, Dr. Lurie stressed. Law section of the Cleveland The range and breadth of inter- SaaS providers located in Washington Instead of zeroing in on finding This fall, two Northeast Ohio Metropolitan Bar Association. pretations that are beginning to will be collecting and remitting one perfect mentor (although, she professional organizations kicked Developed in response to input emerge suggest state tax authorities taxes related to those services. said if you can find one, great), Dr. off mentorship programs to make from the region’s law schools, the haven’t yet sewn together a strong Missouri and New York have taken Lurie suggests finding multiple it easier to build such relationships Women in Law section’s program case for how to tax whatever is different views on how to treat the “advisers” — a “mini team” so to — the Women in Law section of connects law students with mentors happening in the cloud. But they’re sale of software hosted on out-of- speak. The simple change in termi- the Cleveland Metropolitan Bar in Northeast Ohio’s legal commu- working on it. state servers. In Missouri, such a nology suggests less responsibility, Association and the Cleveland nity. The program, which started The cloud is a cutting-edge, sale is not subject to sales tax when and having more than one coun- chapter of the Young Nonprofit in October, pairs 22 students, such rapidly evolving method of managing accessed from an in-state location. selor offers access to a broader Professionals Network. as Ms. Capretta, with mentors. business information. Essentially, In New York, SaaS hosted on range of skill sets and perspectives. “Our main role was simply to make “It’s nice hearing from her what cloud computing enables unrelated out-of-state servers are subject to Dr. Lurie recommends having the connections,” said John Lynch, they’re going through,” said Ms. businesses to share computer tax in New York, if the software is advisers both from inside one’s chairman of YNPN Cleveland’s pro- Capretta’s mentor, Nicole J. resources by becoming networked accessed from inside the state. workplace and from outside fessional development committee. Quathamer, who is co-chair of the in an Internet-like way. New York also contends that SaaS sources, such as professional asso- Mr. Lynch, who works as a Women in Law section and a part- Small business in particular can falls within its definition of “tangible ciations, college alumni groups, volunteer engagement specialist at ner in Porter Wright Morris & benefit from cloud computing by personal property” because the previous employers, business the Center for Families and Children Arthur LLP’s litigation department. gaining access to applications, customer gains possession and use ■ owners, online communities or in Cleveland, said the decision to “It’s a reality check.” servers, storage, networks and ser- of the software. vices that otherwise would be highly In Massachusetts, on the other FOLLOW THE LEADER: A Q&A impractical or entirely unaffordable. hand, officials have concluded in at TAMI BROWN ■ Who do you admire Rather than making it look like you Small business owners can be assured Ohio is paying General manager and why? My parents, Pat don’t have answers, it alerts others close attention to what other states are doing. Greater Cleveland Aquarium and Dave Lash. They have to the fact that you are thinking been married for nearly 50 and gathering information to ne could say that years and they still hold make better decisions and solve The cloud can give a small busi- least one case that the customer’s Tami Brown is hands and laugh together. problems. ness owner easy access to expanded ability to access software through Northeast Ohio’s They have been through ■ Favorite nonwork activity? resources while reducing or elimi- SaaS is more akin to receiving a newest big fish. some absolutely crazy stuff Visiting the other wonderful attrac- nating the need to maintain expen- service than receiving a product. OAs general manager of in their lives, but have tions in the region and eating at sive, hard-to-handle technology As another example, Texas the Greater Cleveland Aquarium, never lost their focus on family our independent restaurants. and equipment. recently amended its sales and use which is slated to open to the pub- and friends and bringing love and ■ What most surprises you As state tax authorities have tax regulation to state that any lic on Jan. 21, Ms. Brown has been fun into the lives of the people about the path your career has studied the evolution, they are retailer that owns or uses tangible leading the startup of Cleveland’s around them. taken? My goal since high school exploring how cloud activity can be personal property located in the newest attraction since September. ■ What skill do you wish you was to work in the arts and cultural taxed. They already have ventured state is considered to be doing Ms. Brown admits she’s learned had? The ability to say “no” more field. When I first graduated, despite down the path of how to assert business in the state and therefore a lot when it comes to fish, but often and more strategically. At a more interviews than I like to their tax authority, or nexus, over is required to collect and remit she’s not swimming in completely meeting a few years ago, I had the think about, I could not land a job transactions that cross state borders sales and use taxes. uncharted territory in terms of opportunity to hear the former and ended up at an advertising in new and creative ways as a result Even though a July 2011 ruling promoting tourist spots. CEO of Continental Airlines speak. agency. While there, I volunteered of technology. issued by the Texas comptroller She most recently served as vice Someone asked a question and he for the pro bono account for the It was a long haul for states to indicated such activities were not president of marketing for Positively responded, “I know you want the Institute of Contemporary Art. If it wiggle in on Internet-based trans- subject to sales tax, the state is Cleveland, and she has a back- answer to be ‘yes,’ but it’s not, and hadn’t been for that “off my career actions and ensure their share of starting to look at these activities. ground that includes time at the here’s why.” I loved it, and have choice” job at the ad agency, I sales and use taxes on such activity. The amendment specifies that a Western Reserve Historical Society tried to model my “no’s” off of that would not have been hired at the Today, it’s routine for customers computer service or software would and the Cleveland Museum of Art. response. I am getting better, but Cleveland Museum of Art as their to pay sales tax on Internet transac- be included in the view of what ■ Daily must-read? Crain’s still not where I should be. And first advertising staff member. tions at the time of purchase. Now, constitutes tangible personal prop- Morning Roundup and Daily singing. I really wish I could make Though my career path has not tax authorities are wondering how erty, therefore a business using Headlines. (Seriously.) Also, the a beautiful sound when I sing. been straight, the cumulative sales and use taxes, or possibly SaaS that’s hosted in Texas may be daily sales report for the aquarium ■ Career advice you wish experience I have gained from the even income tax, can be asserted considered to be doing business in and a wonderful cartoon called someone would have given you? “side step” career positions has over cloud-based activity. that state. Frazz in The Plain Dealer. Never hesitate to ask questions. been invaluable. So far, Ohio hasn’t made signifi- With such varying interpretations cant inroads on whether, when and materializing, it will be a long path BUILDING YOUR NETWORK how to tax cloud-based activity, but through regulatory and judicial small business owners can be assured activity for the taxation of cloud Get involved and stay informed Contact: Greg Renkas, 216-436- help high-achieving high school students Ohio is paying close attention to activities to become clear. by building your network online 2208, or grenkas@unitedwaycleve- from low-income families accomplish what other states are doing. But small business owners and in person. land.org. academic excellence. Volunteers go to There are generally three service venturing into the cloud should be ■ Check out United Way of Web: www.unitedwaycleveland.org Minds Matter on Saturdays during the models with cloud computing: Soft- aware that tax consequences are Greater Cleveland’s Young /youngleaders school year to help students improve ware as a Service (SaaS), Platform sure to follow eventually. ■ Leaders. It’s a group of professionals ■ While you’re in the spirit of giving their academic skills, gain acceptance as a Service (PaaS) and Infrastruc- in their 20s and 30s who want to work back, consider looking into Minds to leading college summer programs ture as a Service (IaaS). Mr. DeMarco is vice president and to make our community better Matter. Minds Matter of Cleveland and eventually gain admission to a Washington, for example, updated director of tax services for the through philanthropy, volunteerism is part of the national Minds Matter four-year university. its tax rules to say that any SaaS regional accounting and business and advocacy through United Way of organization that’s in its fourth year Contact: [email protected] would be subject to both sales and consulting firm of Meaden & Moore, Greater Cleveland. locally. Young professional volunteers Web: http://mindsmattercleveland.org use tax, which is imposed on the headquartered in Cleveland. 20120109-NEWS--15-NAT-CCI-CL_-- 1/6/2012 1:08 PM Page 1

JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 SMALL BUSINESS

you still be motivated? Some of the issues we ask poten- It may not be time to sell, but time to plan exit tial sellers to think about are valua- tions of their company, required sk anyone how to make your past success. achieve the maximum value for future income needs and what money in the stock market Unfortunately, you are looking MITCHELLFRANKEL their company in a sale. investment vehicles (stocks, bonds, and you’ll get the same to sell at a time when earnings and Remember, as the economy etc.) they will use to provide the cliché answer: “Buy low sales growth are reduced and recovers, you, like many owners, income replacement. andA sell high.” Or for the past few when buyers are looking to con- will have forgotten the gloomy days With the information, a good months, “Sell high and buy low.” serve cash, reduce risks and pick of the past and will be caught up in financial adviser can help an owner The popularity of the statement up companies cheaply. the euphoria of increased sales and project if the time is right to sell and is driven by its truth, yet it is rarely The reasons that entrepreneurs growth once again. whether their sale will provide practiced by anyone other than the become sellers can be numerous. You forget the reason why you them with the funds they need to ultra-disciplined investor. They range from retirement and wanted to be a seller. Instead of accomplish their goals. Greed, more often than not, gets succession planning to fatigue to di- ADVISER seeing a recovering business as an Before becoming a seller, espe- in the way of a profitable sale of a versification of assets and risk opportunity to cash in on your cially if you are looking for it to stock, as it does the profitable sale reduction. adviser and business broker or in- efforts, you again focus on the here mean retirement, it is a good idea of a company by an entrepreneur. No matter the reason, if an vestment banker) and plan for the and now, forgetting what just was. to review your plans and needs with If you are a typical entrepreneur, owner is looking to make a transi- future disposition of the business. As an entrepreneur, the only a good financial adviser. ■ you have spent years creating your tion, the best thing to do is to plan This means that many owners of thing more difficult than figuring company, pouring thousands of two to three years in advance and middle-market companies who feel out when to sell is figuring out Mr. Frankel, chartered retirement hours over many long days, nights be a proactive seller when your they are ready to hand the reins to whether you are a seller. planning counselor (CRPC), is a and weekends into your efforts. company is on the upward swing. someone else or who wish to diversi- Determining whether one wants financial adviser with Lakeside When things are going well, you The time may not be right to fy their holdings should be looking to to sell their company requires Wealth Management Group of Wells are happy to continue your efforts make a good deal and achieve a high sell their companies in the coming significant self-analysis. Are you Fargo Advisors LLC in Pepper Pike. and take advantage of the fruits of multiple of earnings (if there are any recovery. ready to cede control? Are you Prior to joining Wells Fargo Advisors, your labor. When things turn down earnings any longer), but it is the With the improving economy as ready to retire? Mr. Frankel was a merger and acqui- as they have recently, like many right time to start planning an exit. wind at their backs, they will be How will you replace your pay- sition adviser to small to midsize cor- owners, maybe you are looking to Now is the time to assemble a able to show the growth and check? Do you wish to continue un- porations. Wells Fargo Advisors LLC is sell with the hope of cashing in on team (lawyer, accountant, financial project future growth in order to der the ownership of another? Will not a legal or tax adviser.

land, and an MBA student at Case the bad one, though: In the 1990s, Western Reserve University. he and a few friends decided to Teams: Defined roles, ownership key Mr. Manning knows that business buy a rental property, fix it up and partnerships can work. For instance, sell it. They laid just one ground continued from PAGE 13 ensures that votes on big decisions Kevin Busta and Michael Carreras he started his law firm with his rule: Everyone had to show up on development firm called Insivia don’t get stuck in a 50-50 stalemate. is going well, according to Mr. wife, though she eventually went certain days to work. just after graduating from John Bob Chalfant agrees that one Carreras, who is managing the into banking because she didn’t That agreement wasn’t enough. Carroll University. Soon thereafter, partner needs to own a majority business side of a company they like the business of law. Plus, he Soon, they were fighting over who they started “stepping on each stake: 50.1% is enough to do the trick. started to sell Mr. Busta’s industrial- and a client who previously had was pulling their weight. They did others’ toes” because they both That setup sometimes can frustrate style artwork and furnishings to a been in a rocky business partner- get their money back when they did a little bit of everything instead the partner with the minority stake, broader audience. ship together started the Five Star sold the property, but it wasn’t of taking on separate roles within but he or she will get over it, said After reading about Mr. Busta’s Dive Bar & Grill in Willoughby. worth the effort and the strain it the company, Mr. Halko said. Mr. Chalfant, director of the Fitz- work in Crain’s Cleveland Business They sold the bar for a profit two put on their friendships, Mr. Plus, they started disagreeing gerald Institute for Entrepreneurial two years ago, Mr. Carreras started years ago, after which it became an Manning said. over issues such as the services Studies at the University of Akron. buying his artwork and built a Irish pub called Croagh Patrick. “We all agreed we would never they should offer and the customers “The person already agreed friendship with Mr. Busta. They Those good partnerships go into business with one another they should pursue, which “signif- that, if we have a tie, you win,” Mr. soon began to discuss the idea of haven’t helped Mr. Manning forget again,” he said. ■ icantly slowed” the growth of the Chalfant said. creating a formal company, with company, he said. On occasion, Mr. Chalfant has Mr. Carreras serving as CEO and After a few years, Mr. Halko encouraged his students to go into opening a storefront where Mr. bought out his partner’s portion of business together. When he learned Busta could display his work. the company, which today employs he had one student who wanted to Kevin Busta LLC opened a store 14 people in Cleveland. He advises start a dance studio and another in Tremont in September. SMALL Business is others thinking about taking on a who wanted to start a dance clothing Mr. Carreras said the partnership business partner to define their store, he suggested they combine should work because he and Mr. roles clearly and to create a buy- their ideas into one business. Busta have clearly defined roles, sell agreement ahead of time. “It’s just so synergetic,” said Mr. communicate well and spent a “You have to go into it with an Chalfant, who has held management year discussing the plan before understanding that it may end,” positions at several companies, most pulling the trigger. Big to Us! he said. recently serving as CEO of The “You need to build up that trust Mr. Halko also says that, if the MetalWood Bat Co. in Eleanor, W. Va. in each other and make sure that business has just two owners, one each person is committed,” said The Middlefield Banking Company built our business A work of art should own at least a slight majority Mr. Carreras, who is an account on helping small business. We will treat you with of the company’s stock, which So far, the partnership between executive at WJW-TV, Fox 8 Cleve- dignity and fairness, and give you the consideration you deserve. Come over to a Community Bank Common threads fuel collaboration on popup that delivers: UÊ 6>ÀiÌÞÊvÊ >ÃÞÊ iV}Ê"«ÌÃ n many ways, Steven Tatar and landlord-tenant relationship. Michael Ozan are cut from the For Mr. Ozan, it was a chance to UÊ iÀV>Ê>ÃÊ>`ÊiÃÊvÊ Ài`Ì same cloth, and sometimes further the work his agency already UÊ ,i>Ê ÃÌ>ÌiÊEÊ µÕ«iÌÊ>Ã that’s just what it takes to start was doing for Ohio City Inc., which Iweaving together a partnership. recently adopted the Twist-inspired UÊ >«Ì>Ê«ÀÛiiÌÊ>Ã Both are energetic business owners branding of being an artisan UÊ ÛiÃÌiÌÊ-ÕÌÃ and entrepreneurs. Each shares an neighborhood. interest in history. Both are passion- It also offered his creative team the ate about supporting the creative chance to be involved in a product energy building around Ohio City. offering and to try out a large and So it’s not surprising to see the Michael Ozan from Twist Creative and lofty promotion effort: a billboard The Middlefield two join forces in support of a Steven Tatar from Ohio Knitting Mills. that was dressed up in a 24-foot Banking Company common business and development sweater made of vintage OKM knits effort — a collaboration that mani- The popup, which was located in (for which the money that would www.middlefieldbank.com fested itself this holiday season as the storefront space of Twist’s offices, have been rent was reinvested). the Ohio Knitting Mills popup shop was a temporary retail site for Mr. Messrs. Tatar and Ozan say the 888-801-1666 on West 28th Street in Ohio City. Tatar’s archive of virgin vintage end of the popup will not be the end Main Office 888-801-1666 | West 440-632-1666 | Chardon 440-286-1222 “We were kind of each other’s knitwear from Ohio Knitting Mills, a working together. Mr. Tatar even sees Garrettsville 330-527-2121 | Mantua 330-274-0881 | Orwell 440-437-7200 missing piece,” said Mr. Ozan, pres- company that for 76 years produced manufacturing in textiles as a poten- Newbury 440-564-7000 | Cortland 330-637-3208 ident and chief creative officer of clothing from its Cleveland factory tial next step: “There’s a very wide Twist Creative Inc., a brand strategy for department stores and labels. but specific niche that Cleveland can and design firm. But the setup was far more than a step into.” — Amy Ann Stoessel 20120109-NEWS--16-NAT-CCI-CL_-- 1/6/2012 1:50 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012

THE SAME GAME NORTHEAST OHIO’S TOP According to statistics from Grubb & Ellis, vacancy rates in Northeast Ohio’s office market inched up while the industrial rate trended downward. SBA LENDERS Office 2011 2010 2009 2008 2007 Downtown 22.19% 21.74% 21.05% 19.84% 20.11% RANKED BY DOLLAR VALUE OF 7 (A) LOANS IN FISCAL 2011 Suburbs 21.48 21.43 19.72 17.56 17.16 Total market 21.88 21.60 20.46 18.82 18.81 Dollar value of This Company name Dollar value of approved approved loans fiscal Number of loans year Headquarters loans fiscal 2011 2010 % change fiscal 2011 1 Huntington National Bank 82,357,400 54,599,300 50.8% 681 Vacancies: 2013 office Columbus KeyBank NA 2 Cleveland 31,495,900 10,521,000 199.4% 101 Fifth Third Bank market likely better 3 Cincinnati 17,985,300 12,197,500 47.5% 36 continued from PAGE 3 4 U.S. Bank NA 14,570,400 1,903,500 665.5% 28 Industrial 2011 2010 Columbus market — people can breathe and relax.” Downtown 9.73% 10.45% 5 JPMorgan Chase & Co. 14,180,200 10,902,800 30.1% 84 New York It didn’t hurt the industrial market Northeast 12.01 12.03 that nearly 2 million square feet were 6 Lorain National Bank 13,057,300 6,142,900 112.6% 31 Lorain demolished in Twinsburg alone as Southeast 11.34 13.99 Scannell Properties and DiGeronimo 7 FirstMerit Bank NA 7,847,200 4,080,300 92.3% 43 Akron Cos. tore down much of the Chrysler South Central 12.02 11.12 plant after finalizing its purchase. 8 Live Oak Banking Co. 6,647,000 ———— ———— 8 Southwest 13.07 14.43 Wilmington, N.C. Plans call for rebuilding on that land Ohio Commerce Bank as well as on empty land and parking Northwest 19.03 17.82 9 Beachwood 6,460,000 4,248,500 52.1% 11 lots at the plant site. Total market 11.90 12.80 First National Bank 10 Orrville 5,820,000 1,325,000 339.2% 8 On the office front … The vacancy numbers were not as to hire and have to look at more 11 PNC Bank 5,542,800 3,610,800 53.5% 19 Pittsburgh favorable in the office market. In space.” downtown Cleveland, vacancy edged This time next year, the office 12 Charter One 5,125,000 3,686,500 39.0% 63 Providence, R.I. up to 22.19% at year end from 21.74% market will be in far better shape, at the end of 2010. The uptick was Mr. Cristal predicts, because some of 13 Westfield Bank FSB 4,855,000 3,428,400 41.6% 10 Westfield Center even smaller in the suburbs, to 21.48% the big deals of 2011 will increase from 21.43%. occupancy as more tenants move 14 mBank 4,788,900 ———— ———— 1 Manistique, Mich. However, those numbers do not into their space. tell the whole story, notes Jeff Cristal, For example, plans by AmTrust 15 Community South Bank 4,581,000 ———— ———— 2 Parsons, Tenn. senior vice president at Grubb & Financial Corp. to move more than Ellis and head of its office unit. He 300 jobs to the 800 Superior Ave. 16 Consumers National Bank 4,570,600 2,147,100 112.9% 13 Minerva said absorption — a little-reported building in downtown Cleveland real estate statistic that measures the from Seven Hills and to add as many 17 Home Savings & Loan Co. 4,255,200 ———— ———— 10 Youngstown change in occupied space in the as 500 jobs in the future do not show market — climbed 246,315 square up yet in the Grubb & Ellis occupancy 18 Park View Federal Savings Bank 3,946,000 ———— ———— 5 Solon feet in 2011 over 2010, the first time figures. An AmTrust affiliate bought the regional office market posted a the largely vacant building last 19 First Colorado National Bank 3,800,000 1,800,000 111.1% 2 Paonia, Colo. positive absorption figure since the August but will not be in the space end of 2008. until later this year. 20 North American Banking Co. 3,710,000 ———— ———— 1 Roseville, Minn. Credit the weak economy for de- Even so, Mr. Cristal feels a new priving the office market of greater tempo in the office market. 21 Grow America Fund Inc. 3,558,000 4,871,000 -27.0% 5 New York, N.Y. absorption gains, although they beat “There is a buzz downtown like I the bad breaks of the past few years. have not heard in many years,” he 22 Portage Community Bank 3,531,200 1,298,800 171.9% 15 Ravenna “You can only sit on the sidelines said. for so long,” Mr. Cristal said. “I’m That beats the gnashing of teeth 23 First Financial Bank NA 3,528,500 420,200 739.7% 3 Hamilton hearing business owners and opera- and hand-wringing punctuating so tors say they’re busy now. I’ve not much bad news in the office market 24 State Bank and Trust Co. 3,431,700 ———— ———— 4 Defiance heard that for a few years. More have since 2008. ■ Cortland Savings and Banking Co. 25 Cortland 3,130,000 200,000 1,465.0% 2 Western Reserve Bank 26 Medina 2,697,800 661,000 308.1% 9 27 Citizens Bank 2,412,200 3,098,100 -22.1% 13 Packaging specialist in Flint, Mich. First Place Bank 28 Warren 2,080,000 4,902,000 -57.6% 2 Wells Fargo Bank NA Wadsworth buys Pa. firm 29 Sioux Falls 1,975,100 630,000 213.5% 4 Genoa Banking Co. 30 Genoa 1,675,000 2,309,000 -27.5% 9 Acquired company specializes in thermoforming Newtek Small Business Finance Inc. 31 New York 1,610,800 ———— ———— 2 By FRANK ESPOSITO bought controlling interest in the Plastics News company in early 2010. Rohrer Baytree National Bank & Trust Co. 32 Lake Forest, Ill. 1,600,000 ———— ———— 1 makes thermoformed blister pack- In a deal that it said will strengthen aging as well as paper cardstock for Home Loan Investment Bank FSB 33 Warwick, R.I. 1,475,000 ———— ———— 1 its position in the visual packaging blister packs and folding paper market, Rohrer Corp. in Wadsworth cartons. ShoreView owns four other RidgeStone Bank 34 Brookfield, Wis. 1,410,000 ———— ———— 2 has purchased Buckell Plastic Co. of plastic-related businesses. Lewistown, Pa., for an undisclosed Rohrer reported thermoforming First Western SBLC Inc. 35 Dallas 1,400,000 1,965,000 -28.8% 1 price. sales of almost $21 million for the Buckell “is a well-run company year ended last May 31, while Ther- Lake National Bank 36 Mentor 1,323,300 470,000 181.6% 7 with products and customers that moforming accounted for about complement our current book of 28% of the company’s total sales. Waterford Bank NA 37 Toledo 1,200,000 958,500 25.2% 1 business,” Rohrer president and CEO Rohrer employs about 100 in its Scot Adkins said in a news release. thermoforming operations. American Business Lending Inc. 38 Dallas 1,070,000 ———— ———— 1 Buckell has annual sales of about Buckell had been owned by the $3.5 million. Its 50,000-square-foot Schell family. Clarence Schell First National Bank of Pennsylvania 39 Greenville, Pa. 1,069,000 345,000 209.9% 7 Lewistown plant, which makes founded the firm in Lancaster, Pa., thermoformed plastic packaging for in 1964. Buckell moved to Lewistown CFBank 40 Fairlawn 1,009,000 5,449,000 -81.5% 2 the medical, food and retail markets, in 1990. Brian Schell, Clarence’s son, will join Rohrer plants in Wadsworth; now serves as president of the firm. ■ This list was compiled from information provided by the Cleveland District office of the SBA for fiscal Researched by Deborah years ended 9/30/2011 and 9/30/2010. The Cleveland District covers 28 northern Ohio counties. W. Hillyer Buford, Ga.; and Huntley, Ill. Crain's Cleveland Business does not independently verify the information. We welcome all responses to This marks the first deal for Frank Esposito is a senior reporter our lists and will include omitted information or clarifications in coming issues. Rohrer since private equity firm with Plastics News, a sister publi- ShoreView Industries of Minneapolis cation of Crain’s Cleveland Business. 20120109-NEWS--17-NAT-CCI-CL_-- 1/6/2012 3:27 PM Page 1

JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Metro: Changes could impact hospital system’s construction plans continued from PAGE 1 — William Gaskill, Ronald Fountain “I don’t think (the MetroHealth CEO decision) should be the county’s safety-net hospital for “I don’t think it would be an exag- and Donna Kelly Rego — will have made without input from the county.” those who can’t afford medical care. geration to say appointing the next served an average of 26 years by A big unknown is how any CEO is the most important decision the time their final six-year terms – Ed FitzGerald, Cuyahoga County Executive changes in leadership will affect that this board is maybe ever going expire. plans unveiled late last year by Mr. to make because the institution is at Dr. Fountain, the board’s chair- been criticized in recent months for her language as Mr. FitzGerald Moran to expand MetroHealth’s a turning point and health care in man who will have served 16 years the amount of money it has about what the level of the county’s presence by constructing at least America is in transition,” Mr. as a trustee when his term expires pumped into consulting contracts. involvement should be in Metro- three suburban health centers — Health’s CEO search. She instead FitzGerald said. “We have to find a in 2013, echoed Mr. FitzGerald’s … and in with the new the first planned for Middleburg really talented candidate to take on sentiment. noted that the council vets and signs Heights — and undertaking other that challenge.” “There needs to be a cross- MetroHealth officials are putting off on the county executive’s Metro- measures to lure more insured The impending leadership changes section of people on this board who together a search committee to vet Health board appointments and is patients to the system. come at a time when MetroHealth don’t serve long, long terms,” Dr. potential candidates to take over for confident the board will make a good Thomas Campanella, director of faces mounting financial uncertainty Fountain said. “I said this to Ed Mr. Moran, who earns an annual decision in naming the next CEO. Baldwin-Wallace College’s health given the 35% increase in uncom- FitzGerald. One term is probably base salary of $550,000 with up to “I don’t know we have much more care MBA program, indicated the pensated care the system has stom- not quite enough, but two terms is $150,000 in incentives. to do with it than that,” she said. impact of any changes remains to ached since 2008, when Mr. Moran plenty.” Mr. FitzGerald wouldn’t specify County Councilman Dave be seen. took the helm. Mr. FitzGerald already has made how he or members of the 11- Greenspan, who has been critical of “If it’s already a really solid orga- To avoid $6.3 million in projected an impact on the MetroHealth board member county council should be MetroHealth’s operations, likewise nization with a solid profit margin, operating losses in 2011 and another with the appointments of J.B. Silvers involved in the CEO selection said council should have “zero you can weather those leadership $21.1 million in 2012, MetroHealth and Vanessa Whiting, and poten- process, other than to say it should involvement, in my opinion” in the changes,” Mr. Campanella said. last Nov. 3 announced a number of tially could change the entire board be an exhaustive and public search selection of the next CEO, as dictated “But as we all know, Metro’s chal- cost-cutting moves, including 104 if he runs for and wins a second with consistent communication among by state law. lenges are going to be even greater layoffs and the elimination of 151 term as county executive. all parties. He did note, however, “To that extent, their indepen- given the population it serves.” vacant positions. It also is in the “If Ed can continue to provide that Mr. Silvers and Ms. Whiting dent board should independently Dr. Fountain said MetroHealth’s process of eliminating another 83 people like that in terms of leader- will be on the search committee. select their CEO,” Mr. Greenspan leadership is bound to change and jobs during the first half of this year, ship on the board, it would be a “I think we’ll continue to monitor said. “To the extent council provides the model for how to guide the in part through attrition. different board,” Dr. Fountain said. the way it’s working,” Mr. FitzGerald funding, I believe we have the right health system toward a sustainable said. “We’re a major stakeholder in and obligation to ensure the funding future might change, too. But, he Out with the old … “With picks like that, it’ll simply be amazing in the future.” the whole system. I don’t think a is appropriated as we have condi- added, “the outcome doesn’t While Mr. Moran has been the Mr. FitzGerald said Dr. Silvers, decision that crucial should be made tioned it.” change, which is continuing to most visible figure at the institution the former CEO of QualChoice — a without input from the county.” The county in 2011 provided a serve the mission of the institu- for the last four years, the health health plan and insurance company County Council President C. $36 million subsidy to Metro- tion,” that being to care for the system’s board of trustees has been — who now teaches at Case West- Ellen Connally wasn’t as pointed in Health, which is considered to be county’s indigent population. ■ composed of many of the same ern Reserve University, and Ms. faces for decades — an arrange- Whiting, a tax and real estate attor- ment Mr. FitzGerald said was “not ney from Cleveland Heights, diver- ideal.” sified the board’s skill sets in order Mr. FitzGerald made clear in his to address the lofty issues facing the interview with Crain’s he wants to system. Those include its aging inject new blood into the board, main campus on West 25th Street which oversees MetroHealth’s and how to cope with the financial operations and signs off on the repercussions of federal health care health system’s budget, consulting reform. Where work and spending on major capital Mr. FitzGerald said other new investments. appointees would elevate the board’s can I get a The three board members whose scrutiny of how public dollars are What are best terms expire over the next two years spent by the system, which has sample job practices for description? employee on- Back to the Future boarding? Business succession What do I need and estate planning to include in for 2013 starts now my employee Where can handbook? I get local compensationco data? ROUNDTABLE Where Does this should we EVENT qualify under Thursday, post our new January 26, 2012 job opening? FMLA? 11:30 a.m. to Noon EST – Lunch & Networking Noon to 1:00 p.m. EST – Roundtable Program Location: McDonald Hopkins, Fifth Third Building 600 Superior Avenue East, Suite 2100 • Downtown Cleveland RSVP: Call 216.348.5400 or visit www.mcdonaldhopkins.com Yeah, we can answer that. www.ercnet.org/answers | 440/684-9700

McDonald Hopkins LLC 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 Carl J. Grassi Shawn M. Riley President Cleveland Managing Member

Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach 20120109-NEWS--18-NAT-CCI-CL_-- 1/6/2012 3:23 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 9 - 15, 2012 Positive jobs report has some analysts rethinking 2012 outlooks

By JEFF BENJAMIN market strategist at Cetera Finan- from a revised November figure of that came in above expectations responsibility and a broader recov- InvestmentNews cial Group Inc. “This seems like 8.7%, the unemployment rate is at and data from the Institute for Sup- ery, said Brien O’Brien, chairman nothing but good news about the its lowest point since February 2009. ply Management showing increased and CEO of Advisory Research Inc.. Last Friday’s U.S. jobs report, which economy.” “This is a cap to a really good business activity, Mr. Lamkin is ready “The deleveraging of municipal- showed that more than 200,000 The report from the Bureau of week,” said Mark Lamkin, president to move money into stocks. ities, states and the federal govern- jobs were created in December and Labor Statistics showed broad- and chief executive of Lamkin “Until (last) Monday, we were ment is being accomplished in part pushed the nation’s unemployment based job growth, with the only job Wealth Management, a $225 mil- 80% in cash, but we’re now 50% by the shrinking employment levels rate to its lowest level in nearly two losses last month coming from the lion advisory firm. “If this continues, invested and on Monday, we’ll be in those areas,” he said. ■ years, has some financial market government sector. But even that it could get Obama re-elected.” adjusting that to 70%,” he said. watchers rethinking their outlook figure — showing 12,000 government It already has Mr. Lamkin rejig- While the loss of government Jeff Benjamin is a senior editor for the year ahead. jobs cut — reflects a slowing trend. gering his investment strategy. Citing jobs does have a negative effect on with InvestmentNews, a sister “I don’t know what the heck’s With the unemployment rate for improved consumer sentiment, the unemployment rate, it also publication of Crain’s Cleveland going on here,” said Brian Gendreau, December measured at 8.5%, down December retail sales increases represents a direction toward fiscal Business.

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JANUARY 9 - 15, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Bankruptcies are down, restricted, rendering many people unable to more promotions this season, according to JANUARY 2 – 8 take on debts from which they later might a network spokeswoman. — Joel Hammond but don’t pop the bubbly need absolved, said Alan C. Hochheiser, ■ A drop in bankruptcy filings in all of 2011 managing partner in bankruptcy for Welt- The big story: Macy’s Inc. soon will be A testy battle from levels of 2010 in Cleveland and Akron man, Weinberg & Reis Co. LPA in Cleveland. pulling out of Parmatown Mall, leaving the sub- may inspire optimistic thoughts, but bank- — Michelle Park in TV land urban shopping center with a massive hole to ruptcy experts are echoing what they told ■ There is a war of words being fought in the fill. The store at Parmatown is among five Macy’s Crain’s last May: Bankruptcies aren’t falling ether over Northeast Ohio. stores across the country that the Cincinnati- Missed this deal? because the economy is improving. Ohio Media Watch, an industry blog, is based retailer said it will be closing early this “There is no silver bullet to our economy,” Well, keep watching following a flurry of increasingly testy FCC spring. It is the only store in Ohio that will close. said John K. Lane, managing director and ■ For the low, low price of tuning into Fox filings by the owners of local television sta- The Macy’s store at Parmatown opened in 1960, CEO of Inglewood Associates LLC, a local Sports Ohio for the Cleveland Cavaliers’ tions WJW-TV, Channel 8, and WBNX-TV, when it was part of May Department Stores Co., turnaround and workout firm. “We are not game at Toronto last Wednesday night, Cavs Channel 55. It’s over a request by WJW’s and consists of 288,000 square feet of retail going to wake up to the dawn of a new day. fans could have gotten a free ticket to the owner, a subsidiary of Oak Hill Capital Part- space. The company said it will try to find the This is going to be a tough, gradual climb team’s Friday, Jan. 20, game against the ners, to move the station’s signal to a different store’s 94 employees opportunities at other back up the mountain.” Chicago Bulls at Quicken Loans Arena. frequency, one it occupied in the past. The stores it is keeping open. Total bankruptcy filings, including And many did. The latest installment of change would eliminate some areas where It’s a gas: Chesapeake Energy Corp. completed consumer and commercial cases, tumbled the “Box Office Buyout” promotion of the its signal is hard to pick up over the air since a previously announced joint venture agreement year over year by 14% in Cleveland, 21% team and regional sports network featured broadcasting went digital in 2009. with a subsidiary of Total S.A., under which in Akron and 19% across the entire an in-game special offer giving every WJW’s petition before the FCC included a Total acquired for $2.3 billion an undivided 25% Northern District of Ohio of the U.S. ticket buyer a second ticket for log of more than 300 complaints since June interest in 619,000 acres in what Chesapeake Bankruptcy Court, which also includes free, courtesy of FSO. Cavs 2009 from people who’ve had trouble described as “the liquids-rich area of the Utica Canton, Youngstown and Toledo. spokesman Tad Carper said picking up the station. But Winston Broad- Shale.” Of the joint venture acreage, about Bankruptcy filings in the entire the promotion, which the casting, owner of WBNX, filed an objection, 542,000 acres were contributed by Chesapeake district totaled 30,828 — their lowest parties ran a few times last saying the switched signal would interfere and 77,000 acres were contributed by Houston- point since 2008, when they num- season, typically generated with its signal and that the petition was only based EnerVest Ltd. and its affiliates. The joint bered 31,180. “a couple hundred tickets,” a cost-saving measure. venture area covers all or a portion of 10 counties Bankruptcy professionals say filings are but this one produced more than 850 tickets Winston said WJW could solve the problem in eastern Ohio. dropping because many people and busi- sold, with another 850 distributed for the by raising its signal strength at its current nesses cannot afford the costs of bankruptcy, promotion. frequency. That annoyed WJW, which in a and because others don’t expect to see the It’s the latest in what likely will be a long Dec. 12 filing scoffed at its competitor. light of day if they enter the bankruptcy line of promotions this season as the Cavs It said WBNX “offers viewers zero local tunnel. They also say most of the companies deal with a flagging fan base. Last week, the news or public affairs programming. Put that could survive bankruptcy took the leap Cavaliers offered a beer tasting included bluntly, it really matters if viewers through- Taking stock of the situation: Directors before 2011. with a ticket purchase to Tuesday night’s out the Cleveland market can’t reliably tune of American Greetings Corp., which saw its As for why consumer bankruptcies in win over Charlotte. The Cavs listed official into WJW over-the-air; a few WBNX viewers’ stock price battered recently by disappointing particular are down, attorneys cited slowed attendance as 14,173 for that game, or just inability to watch reruns of ‘The People’s quarterly results, authorized the repurchase foreclosures and increased loan modifica- under 69% of capacity. Court’ and ‘Frasier’ is considerably less im- of up to $75 million of the company’s Class A tions. In addition, access to credit has been The team and FSO would partner on two portant.” — Jay Miller common shares. In late December, investors sent American Greetings’ stock down 21% in a single day after posting weak operating margins. WHAT’S NEW BEST OF THE BLOGS On Jan. 4, the stock ended the day at $12.50 a share, down nearly 50% from its 52-week high of Excerpts from recent blog entries on The Federal Reserve Bank of Cleveland is $24.84. American Greetings said there is no set CrainsCleveland.com. offering high school juniors and seniors a expiration date for the repurchase program. chance to win prizes by entering the bank’s Abramoff’s comeback 2012 Creative Writing Contest called “Eco- New in the neighborhood: Ferro Corp.’s nomics on TV.” former headquarters in downtown Cleveland is sets off her gag reflex Students “can submit an essay, poem, play, in new hands long associated with Cleveland ■ It’s only Jan. 3, but we already have a or short story explaining how basic eco- business after the building’s sale to Parkwood candidate for Northeast Ohio quote of the nomic concepts impact the TV show’s plot,” Corp., an investment firm formed by the Mandel year, courtesy of a Bloomberg story about the Cleveland Fed said. brothers, who built and sold the former Premier the re-emergence of convicted felon Jack The deadline for submissions is Feb. 27, Industrial Corp. in the city’s Midtown neighbor- Abramoff in public life. 2012. The top prize is a $500 cash gift card. hood. Parkwood paid $2.3 million for the 44,000- COMPANY: Molar Bond LLC, Bloomberg reported that mandatory Kids, start looking closely at the economic square-foot office building at 1000 Lakeside Ave. ethics training this year for the 138 members concepts on display in “Jersey Shore.” (No joke. Morton L. Mandel, Parkwood CEO, said the firm Auburn Township of the Kentucky legislature features a That would be a good one to write about.) would move its 51 employees to the building PRODUCT: OralEnlight lecture by Abramoff, who in 2006 was con- in a few months after it modernizes the 1965- victed for his role in Washington’s biggest If the gambling doesn’t vintage structure. lobbying corruption scandal. He will be get you, the taxes will Molar Bond, a startup formed by Ken paid $5,000 plus travel expenses for an hour Good chemistry: OM Group Inc. said it Lawrence, DDS, and manufacturing industry of his thoughts. ■ We avoid clichés like the plague here at bought Rahu Catalytics Ltd., the developer of veteran Mike Tur, promises its new product Some lobbyists “say they are livid about Crain’s Cleveland Business, so you won’t what OM Group described as “a unique iron-lig- will help orthodontists see molars in a new light. Abramoff’s return to the spotlight, saying he find us calling something a “good news/bad and based chemistry” for use in environmentally The OralEnlight device is designed to make only further impugns the reputation of a news” story. But a recent piece from Reuters friendly coatings, composites and inks. The it easier for orthodontists to see teeth in the profession that rates lower in Gallup public might be described no other way for gam- seller was Unilever Ventures and Management, back of the mouth and to obtain proper iso- opinion surveys than car sales and telemar- blers living in Ohio. the European venture capital arm of consumer lation; think of it as a fitted mouth flashlight. keting,” Bloomberg reports. “In the waning days of 2011, the federal products giant Unilever. OM Group said the The company says it offers total posterior Elizabeth Bartz, president of State and government has handed gamblers two transaction includes all related intellectual illumination, shadow-free light and a Federal Communications Inc. in Akron, gifts,” the news service noted. “The Justice property rights and master patents, as well as all rechargeable battery pack. It’s made from said Abramoff’s public appearances “make Department cleared the way for states to manufacturing and supply agreements. The FDA-approved plastic and components. me want to gag.” (State and Federal Com- start legalizing online poker and other Cleveland-based producer of specialty chemi- Dr. Lawrence, an orthodontist and an munications helps compa- online betting games. And the cals did not disclose terms of the transaction. assistant clinical professor at Case Western nies and organizations com- IRS agreed to a tax court deci- Reserve University, designed OralEnlight in ply with their political sion that will allow profession- This and that: Sandusky-based amusement response to complaints from residents that contributions, state lobbying al gamblers to take big tax park operator Cedar Fair L.P. said attendance at they had a hard time obtaining proper molar and procurement activities.) losses.” its 17 locations totaled 23.4 million guests in bracket position due to the difficulty of seeing “Certainly you want to give But Russell Fox, a Las Vegas 2011, up 2.6%, or approximately 590,000 visits, far inside the mouth. people a chance to rehabili- tax expert who prepares the from the company’s record attendance of 22.8 To produce the product, he teamed with tate themselves,” she told returns of poker aficionados, million in 2010. … Mining company Cliffs Nat- Mr. Tur, a longtime friend, who heads the Bloomberg. “But is Jack horse bettors, slots players and ural Resources Inc. reached an agreement to sell Cleveland office of a family-owned manufac- Abramoff rehabilitated? I don’t more said Ohio is not kind to for an undisclosed price its previously discontin- turing company called Roboworld. think so.” gamblers. ued renewaFUEL biomass production plant in The device was designed with the assis- “Some states disallow gambling losses, or Michigan. The buyer is RNFL Acquisition LLC, tance of The Technology House in Solon. It subject them to their state’s alternative an acquisition entity created by an investor Might as well put that TV is injection molded at GSH Industries in minimum tax rules,” Reuters reported. “If group that includes renewaFUEL’s minority Strongsville and assembled in Mentor, where viewing to good use you’ve got gambling income and losses, you partners. Dr. Lawrence has an orthodontics practice. ■ Here’s a fun assignment for your TV- probably don’t want to be from Hawaii, For information, visit www.OralEnlight.com. watching high school student. New York, Ohio, Wisconsin.” 20120109-NEWS--20-NAT-CCI-CL_-- 1/6/2012 2:54 PM Page 1