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$2.00/DECEMBER 16 - 22, 2013

Gas Natural under fire from PUCO ON THE WEB made public Nov. 13, the PUCO State utilities commission orders investigative audit of two Read the Public Utilities Commission raised questions about the true cor- porate separation of Northeast of Ohio’s order at: Ohio Natural Gas and Orwell Nat- subsidiaries of company that has ties to Osborne family tinyurl.com/ndg8eoz ural Gas from their affiliates, and By MICHELLE PARK LAZETTE vestigative audit of two subsidiaries which includes members of the the “inflated” fees the two sub- [email protected] of Gas Natural Inc. and all related well-known Osborne family of and Orwell Natural Gas Co., which sidiaries paid to an affiliate compa- companies, citing concerns about Mentor. are local distribution companies ny for natural gas purchases. Following what it termed an “un- the companies’ internal controls, The PUCO, which regulates in- that serve portions of Ohio — to The PUCO in its order said its precedented recommendation” by the propriety of their executive vestor-owned utilities in the state, pay civil forfeiture fines of $26,000 staff’s call for an investigation into its staff, the Public Utilities Com- compensation system and alleged also ordered the two subsidiaries — and $50,000, respectively. the management practices of the mission of Ohio has ordered an in- self-dealing by management, Northeast Ohio Natural Gas Corp. In a 65-page opinion and order See PUCO Page 7 Vitamix searching for overseas blend end blenders could find its next Strongsville move growth-driven property deals over- seas. could be just the Tony Ciepiel, chief operating of- ficer of the company, which brands start of expansion itself as Vitamix, said the domestic growth that prompted the latest ex- By STAN BULLARD pansions in Strongsville is smaller [email protected] on a percentage basis than its Vita-Mix Corp. of Olmsted Town- growth in international sales. Thus, DO YOU ship is stirring things up in the family-owned company expects Strongsville with plans to move to decide in mid-2014 where to es- about 120 employees next month to tablish operations for the first time the former MCPc building on Drake in Asia and Europe. KNOW Road, though the maker of high- See VITAMIX Page 5 THESE Retailers banking on FACES? late shopping sprees hype of Black Friday weekend; You should. Some Northeast Ohio among them are a lack of spending They are our 2013 Newsmakers. downtime between Thanksgiving Pages 11-16 companies attribute and Christmas, an increased focus on online shopping and unseason- so-so sales to late ably cold weather. But most expect sales to pick up in the remaining Thanksgiving season days before Christmas, and nation- al expectations are for this year’s By RACHEL ABBEY McCAFFERTY sales to exceed last year’s. [email protected] Steve Presser, owner of the Big Fun toy and collectible stores in For many people, the 2013 holi- Cleveland, Cleveland Heights and day shopping season hasn’t kicked Columbus, said crowds are usually into high gear as yet, but local retail- robust about two weeks before ers don’t sound too worried. Christmas. That hasn’t been the Store owners and managers cited case this year, which Mr. Presser at- a variety of possible reasons for a tributes to a trick of the calendar. slow start to December after the See RETAILERS Page 22

50 SPECIAL SECTION 7 PATENT POWER

NEWSPAPER Crain’s takes a look at some of Northeast Ohio’s Entire contents © 2013

74470 83781 most prolific innovators ■ Pages 17-21 by Crain Communications Inc. Vol. 34, No. 50 0 PLUS: PATENT POWER INDEX ■ MASTER INVENTORS ■ & MORE 20131216-NEWS--2-NAT-CCI-CL_-- 12/13/2013 4:50 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013 COMING NEXT WEEK WHERE THE JOBS ARE There were 3.9 million job openings in September, an increase of more than Learn more about all those local companies who could one day 8% from the like month of 2012, according to the latest monthly figures compiled by the U.S. Bureau of Labor Statistics. Most major job categories be your clients. Check out our annual Book of Lists next Monday. showed substantial increases in job openings; the exception was government, 700 W. St. Clair Ave., Suite 310, where there were fewer jobs available in September than a year ago. Cleveland, OH 44113-1230 Phone: (216) 522-1383 Corrections Fax: (216) 694-4264 ■ In the Dec. 9, page three profile ■ A profile of Akron Beacon Category Openings Sept. ’13 Openings Sept. ’12 Change www.crainscleveland.com of Market Garden Brewery brew- Journal reporter Bob Downing on Publisher/editorial director: master Andy Tveekrem, the name of page 17 of the Winter 2013-14 Shale Total 3,913,000 3,603,000 +8.6% John Campanelli ([email protected]) Editor: one of Sam McNulty’s bars on West magazine misstated the traffic to Mr. Trade/transp.* 735,000 648,000 +13.4% 25th Street in Cleveland was spelled Downing’s Ohio Utica Shale blog. It Mark Dodosh ([email protected]) Managing editor: incorrectly due to an editing error. The gets 10,000 to 17,000 page views Education, health 725,000 712,000 +1.8% Scott Suttell ([email protected]) correct name is the Bier Markt. per week. Professional 672,000 609,000 +10.3% Sections editor: Amy Ann Stoessel ([email protected]) REGULAR FEATURES Leisure, hospitality 494,000 378,000 +30.7% Assistant editor: Kevin Kleps ([email protected]) Government 382,000 387,000 -1.3% Classified ...... 22 Reporters’ Notebook....23 Sports Senior reporter: Manufacturing 252,000 242,000 +4.1% Editorial ...... 8 Tax Liens...... 10 Stan Bullard ([email protected]) From the Publisher ...... 8 Talk on the Web ...... 8 Construction 113,000 83,000 +36.1% Real estate and construction Reporters: Going Places ...... 10 What’s New...... 23 ■ Note: *Including utilities. Total includes services not shown separately. Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Rachel Abbey McCafferty ([email protected]) Manufacturing and energy Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Events manager: Jessica Snyder ([email protected]) Special events coordinator: Kim Hill ([email protected]) Marketing strategist : Michelle Sustar ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) John Banks ([email protected]) Michael Jansen ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Digital strategy director: Nancy Hanus ([email protected]) Audience development director: Eric Cedo ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Billing: Michele Ulman, 313-446-0353 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Chris Crain: Executive Vice President, Director of Strategic Operations Dave Kamis: Vice president/production & manufacturing Anthony DiPonio: Chief Information Officer Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)

Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125

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DECEMBER 16 - 22, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Parking spaces are at root of dispute

ground. County Council was conducting County officials fear shortage of places for vehicles because Project adviser Jeffrey Appel- an informational briefing with Mr. baum told Cuyahoga County Appelbaum that day and did not of problems that scrapped garage below planned Hilton hotel Council on Dec. 3 that the more take immediate action to approve complicated foundation will add $5 or reject the planned change. By JAY MILLER they have produced discord over mat foundation, which would have million to $7 million to its cost, but The lost parking spaces, howev- [email protected] how to resolve a parking dilemma provided sufficient depth below will not extend the completion date er, have thrown a wrench into the that impacts city, county and feder- grade for two levels of parking on of the hotel beyond its June 2016 cooperative agreement that lays Problems underground that al operations in downtown’s civic top of a steel-reinforced concrete target or increase the projected cost out various financing and opera- scotched a plan to put 280 parking core. pad several yards deep. But the of construction. He said the total tional responsibilities for the hotel spaces below the planned, $260 Cuyahoga County government complex geology of downtown cost of the hotel won’t rise because among the county, the city of million Hilton convention center and general contractor Turner Cleveland is forcing the county to the original budget anticipated the Cleveland and the Cleveland-Cuya- hotel on Cleveland’s Mall should Construction Co. had hoped to use a deep foundation technique possibility of the more expensive hoga County Port Authority. not delay the hotel’s opening, but build the hotel atop what is called a that drives supports 200 feet below foundation. See PARKING Page 6 Incubators are granted more leeway Six of state’s 11 Edison organizations pick option giving them cash to share By CHUCK SODER [email protected]

Officials from local business incubators no longer cringe when talking about the state of Ohio’s effort to make them give more of their money directly to the companies they serve. ON THE WEB Actually, more than To read more about half of them have volun- the 11 incubators in teered to give some of Ohio, go to the Third their grant money to their Frontier page on the client companies — part- state’s website. ly because the state of That page can be Ohio sweetened the pot found at: for doing so. tinyurl.com/kb7px2j State officials have re- JANET CENTURY tooled a plan that would have required incubators Dante Boccuzzi will open Next Door beside his signature restaurant, Dante, in Cleveland’s Tremont neighborhood financed through the Ohio Edison Technology In- cubators program to give a third of their state grant money directly to their client companies.Incubator officials immediately started complaining about the plan, so instead the state gave them two options: GETTING A TASTE FOR MORE The incubators could a.) apply for the same amount of state money they received last year, or b.) lose By KATHY AMES CARR “I’m very hands-on and work di- $100,000 for services and administrative costs but Notable Northeast Ohio [email protected] rectly with the chefs, so I like to gain $200,000 that they could give to companies in make sure my restaurants are with- the form grants, loans or investments. chefs are expanding their ante Boccuzzi says he in a 30-minute drive of my house,” See INCUBATORS Page 6 can’t imagine replicating said the Broadview Heights resident operations beyond region any of his fine-dining and owner of five restaurants, in- restaurants in other cluding his namesake Dante at 2247 Michael Symon plans to open six more Dmarkets because of his inability to Professor Ave. in Cleveland’s EDITOR’S NOTE INSIDE: B Spot locations in 2014, including five outside control regularly the consistency of Tremont neighborhood. This is Crain’s last standard editorial issue of 2013. Cleveland. Page 9 quality. See TASTE Page 9 The Book of Lists will be published on Dec. 23, and the next issue will be available on Jan. 6, 2014. THE WEEK IN QUOTES “There are a lot of laws “The high-net-worth “Last year was one of the most “The employees have gravitated that apply, and in entrepreneurs have a much rewarding years I’ve ever been toward him amazingly. He’s just some cases, the more complex situation, a part of. The fun part was getting started. There’s a lot of commission is not which gives us the ability to every day working with Chris great stuff on the horizon for going to agree with us. implement some financial (Antonetti, the Indians’ general MetroHealth. … By the way, he’s So we’re going to have strategies and use some manager) and his guys and the also a very good businessman. to address that and different financial tools that coaches. I landed in a spot Our results are proving that.” make adjustments.” we weren’t using for the where I was really — Thomas McDonald, MetroHealth’s board chairman, in regard to Newsmaker — Mark S. Yurick, a lawyer middle-class millionaires.” comfortable.” Dr. Akram Boutros, CEO, The MetroHealth representing Gas Natural Inc. — Mark M. Tepper, president, Strategic — Newsmaker Terry Francona, Cleveland System. Page 12 Page One Wealth Partners. Page 4 Indians manager. Page 12 20131216-NEWS--4-NAT-CCI-CL_-- 12/13/2013 3:27 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013 Advisory firm thinks bigger LEASED roughly 20 employees to three, cut- Strategic Wealth Partners adds staff, services ting ties with those who worked on a 683(5,25$9( CLEVELAND, OHIO commission basis because it chose By MICHELLE PARK LAZETTE 90 days, it added a certified public to go fee-only. That’s industry-speak [email protected] accountant, a vice president of oper- for earning fees for advice, not for ations and a marketing coordinator, products one sells to clients. With the goal of becoming a one- bringing its headcount to 13. And Then, in early 2012, Strategic stop shop for high-net-worth entre- Mr. Tepper said he plans to hire Wealth Partners began to shift its preneurs, Strategic Wealth Partners another five people in the first half of focus to prospecting for high-net- has tripled its square footage with a 2014, among them an attorney and worth entrepreneurs as clients. move to Independence as it adds someone with mergers and acquisi- “The high-net-worth entrepre- staff who can offer clients services tions experience. neurs have a much more complex Newmark Grubb Knight Frank beyond financial planning. These are the firm’s first employees situation, which gives us the ability is pleased to announce that we President Mark M. Tepper esti- to carry designations beyond finan- to implement some financial strate- cial planner, Mr. Tepper said. represented First Commonwealth Visit mates the firm has spent more than gies and use some different financial Bank, of Pennsylvania, in opening TerryCoyne.com $200,000 on furnishings and on con- “Our goal really is to become a tools that we weren’t using for the family office for high-net-worth entre- middle-class millionaires,” Mr. Tepper their ÀUVW2KLRORFDWLRQDW Or Call Terry at tracted work for its new quarters at Superior Avenue in Cleveland. 216.453.3001 5005 Rockside Road, Suite 1200, preneurs,” he said. “We’re looking to said. which measure 9,600 square feet. It bring in the different professionals Changes in recent years to the who could provide good advice for estate tax exemption and increases Terry Coyne and Kristy Hull 1350 Euclid Avenue, Suite 300 had occupied 3,200 square feet in Cleveland, Ohio 44115 those types of people.” represented the Tenant. the Seven Hills office it vacated when to income and capital gains taxes it moved Nov. 1. Rounding out the services Strategic also are part of the reason for the The wealth management firm, Wealth Partners provides also helps company’s retooling, he said. which Mr. Tepper says has $170 to ensure that even when investment “A lot has changed tax-wise over million of assets under management, returns aren’t rising, as in recessions, the course of the last few years,” he is hiring to fill that space. In the last for example, “clients find our ser- said. “It’s caused us to recognize that vices valuable,” he said. there’s an untapped opportunity This isn’t the first time the firm — there of us providing advice to these founded in 2003 — changed focus. individuals … before we even manage By early 2009, it had downsized from their investments.” ■ The gift that keeps on giving.

RACHEL ABBEY MCCAFFERTY Marian Cordos, a supervisor in the machine seals segment at SKF’s Highland Heights plant, shows students examples of what the company makes. SKF to invest in plant New lines of business under the plant’s roof by 2015. He would not share the cost of the invest- should lead to new jobs ments being made at the plant. The power transmission business By RACHEL ABBEY McCAFFERTY will supply small-volume custom [email protected] chain for products such as conveyor belts. The chain can be cut to length, SKF, a Swedish company that offers and SKF will keep material on hand services to industrial customers and so customers can expect a rapid makes products such as bearings turnaround, Mr. Zitney said. and seals, is investing in its plant in SKF’s solid oil business, which the Highland Heights. company is moving to Highland The plant, called a Solution Factory, Heights from Mexico, makes self- opened in August 2012 as the second lubricated bearings. The bearings such location for the company in the are used in equipment that operates United States, manager Edward Zit- in mines and other harsh environ- ney Jr. said. Today, it offers spindle ments, Mr. Zitney said. remanufacturing and custom seal These new businesses may lead to This holiday season, go the thoughtful, and lasting, route. Show your manufacturing, and opens its doors some hiring, but it will be incremental. for customers to use as a training Mr. Zitney expects to need a couple employees and your clients how much you care by giving them a gift facility or meeting place. new employees for the chain busi- Soon, the plant also will house a ness and another three to four for power transmission/custom chain the solid oil business, one of whom subscription to Northeast Ohio’s premier source of business news and business and will assemble and sell was recently hired. There are about solid oil, self-lubricated bearings. 40 people at the Highland Heights information. Discounted group subscriptions are now available. The bearings are an SKF product plant now and more than 46,000 SKF made elsewhere; this plant will mix employees worldwide. and pack the solid oil into the bearings. At 71,000 square feet — 40,000 Those operations should be up and square feet of which currently is Contact Eric Cedo running by year-end, Mr. Zitney dedicated to manufacturing — the Interested in purchasing a group subscription? said. SKF is being “very aggressive” Highland Heights location is large at 216.771.5229 or [email protected]. in terms of expanding this location, enough to accommodate growth. Mr. Zitney said, noting that he could “We have room for expansion,” see seven business areas running Mr. Zitney said. ■ 20131216-NEWS--5-NAT-CCI-CL_-- 12/13/2013 4:51 PM Page 1

DECEMBER 16 - 22, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5

GET DAILY NEWS ALERTS Register for free email alerts and Vitamix: Company is adding a third shift at plant receive: ■ The Morning Roundup: The continued from PAGE 1 “Vitamix is fortunate to clude a city job/payroll creation in- Mr. Ciepiel said the company’s day’s business news from Ohio’s daily Mr. Ciepiel would not be more be in the right place at centive grant; it calls for the city to fastest growth is outside the United papers specific on which countries Vitamix cut a check to Vitamix equal to 30% States, although the rate of increase may consider. the right time. The macro of the city income tax its workers is from a smaller base. About 22% ■ Breaking news alerts “Our domestic products will con- trends are driving pay after it adds 265 jobs in the sub- of the company’s products are sold ■ Daily headlines: Crain’s-produced tinue to be made in America, and a demand, such as the urb, or upwards of $45,600 yearly. to offshore customers; Vitamix news and blog items from the day large portion of our product com- The state of Ohio also extended job forecasts that figure may grow to ponents will continue to be made juicing and smoothie creation tax credits to Vitamix in more than 28% by 2018. ■ Dealmaker Alert: A weekly guide trend and the consumer’s on M&A trends and recent in the United States to protect our the past that will apply to the cur- In 2012, its domestic sales transactions in Ohio. intellectual property,” Mr. Ciepiel interest in eating rent expansion.Longer-term plans jumped 52% from levels of 2011 Published Wednesday. said. “But a portion of our distribu- healthier.” to add some operations outside the and in 2013 should rise by a compa- tion and a portion of the assembly United States were no surprise to rable percentage, Mr. Ciepiel said, ■ Health Care Report: A weekly might be elsewhere to create cost – Tony Ciepiel, chief operating Brent Painter, Strongsville econom- though privately held Vitamix does- guide to keep readers on top of savings on shipping costs for glob- officer, Vitamix ic development director. He said n’t disclose sales figures. changes in the health care industry. al customers.” Vitamix has been the target of at- from manufacturing to the company indicated it soon Published Tuesday. tack a recent TV ad campaign by a That decision may impact how warehousing. might add operations in another ■ Real Estate Report: A weekly competitor, Euro-Pro Operation much and where Vitamix grows do- To accommodate job growth and country as it discussed its interna- guide to real estate news. Published mestically. the additional shift at the Morgan tional growth. LLC of Newton, Mass., which brags Monday. Mr. Ciepiel brought up the possi- Court building, Mr. Ciepiel said Vi- Rather than a threat to jobs here, that its Ninja blender is $100 less ■ Small Business Report: A weekly bility of future expansion offshore tamix had to expand the parking lot Mr. Painter views the possibility as than the Vitamix residential guide to small business news. when he was asked if Vitamix was by 260 spaces. Members of the a plus because he has been told by blender. Published Thursday. considering growth options beyond company’s customer service and several manufacturers over the “When you are No. 1,” Mr. Strongsville, where the company Ciepiel said, “all your competitors ■ Shale and Energy Report: A information technology units will years that foreign sales and opera- recently won state and city incen- want to compare themselves to weekly guide to the energy industry. occupy the Drake Road property, tions bolster their domestic tives to expand employment in the you.” Published Friday. which only needed slight cosmetic strengths. suburb by 265 jobs. He was nonplussed by the ad, as improvements, Mr. Ciepiel said. The company will lose the city SIGN UP NOW AT: The incentives accompanied a he noted 78% of the people who Those employees could have and state incentives if it does not commitment by Vitamix to add buy a residential blender do re- CrainsCleveland.com/register moved sooner, but Vitamix is wait- continue to add or maintain jobs in jobs in the former MCPc building, search on the Internet, and Vitamix ing until the busy holiday season is Strongsville, Mr. Painter said, not- 21555 Drake Road, a space that had has a strong commercial following. over before making the transfers. ing, “We’re protected.” been available since the technolo- “Our facilities in Olmsted Town- This year, residential customers ac- Volume 34, Number 50 Crain’s Cleveland Busi- gy company MCPc moved to down- ship are very full,” Mr. Ciepiel said. Right place, right time count for 80% of its business, and ness (ISSN 0197-2375) is published weekly, except town Cleveland in 2011. The company has expanded its commercial customers make up for combined issues on the fourth week of December Vitamix is another case of a the rest, Mr. Ciepiel said. and fifth week of December at 700 West St. Clair Vitamix also is adding a third headquarters and operations at Ave., Suite 310, Cleveland, OH 44113-1230. Copy- shift and is starting to add the first 8615 Usher Road twice over the Northeast Ohio company quietly “Vitamix is fortunate to be in the right © 2013 by Crain Communications Inc. Periodi- of 145 more jobs through 2016 to past decade. The leased Morgan building stature in its industry sec- right place at the right time,” he cals postage paid at Cleveland, Ohio, and at addition- the work force it has in place at an tor since its founding in 1921. Its said. “The macro trends are driving al mailing offices. Price per copy: $2.00. Court property went into service POSTMASTER: Send address changes to Crain’s industrial building at 23221 earlier this year. president, Jodi Berg, is the fourth demand, such as the juicing and Cleveland Business, Circulation Department, 1155 Morgan Court in the city-owned generation of the family at the helm smoothie trend and the consumer’s Protective measures Gratiot Avenue, Detroit, Michigan 48207-2912. Strongsville Business and Technol- of the producer of blenders and re- interest in eating healthier to im- 1-877-824-9373. ogy Park. The company leased the The incentives Vitamix received lated products for both the residen- prove the vitality of their lives ■ REPRINT INFORMATION: 800-290-5460 Ext. 136 building last year for operations Dec. 3 to expand in Strongsville in- tial and commercial markets. through better diet.” 20131216-NEWS--6-NAT-CCI-CL_-- 12/13/2013 2:41 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013 Parking: County councilwoman says Huntington garage is ‘falling apart’

continued from PAGE 3 opened in 2016, the county admin- which dates to the mid-1970s. While $150 million in bonds and istration would occupy its new Mr. Appelbaum went on to say a county investment of $83 million headquarters building at East Ninth that Hilton, the designated hotel will provide the bulk of the money Street and Prospect Avenue and operator, was satisfied with the up- for the project, the city has pledged would move hundreds of county dated parking plan. $8 million and will offer tax incre- employees out of the area. In the “Most urban hotels do not hav- ment financing, which would direct process, it would free up 500 spaces ing parking underground. Most tax dollars on the increase in value in the county-owned Huntington convention center hotels in other 75 YEARS Park Garage for use by hotel guests. cities don’t have attached parking,” of the property to the project. The Port Authority will be the property That satisfied City Council, but, it he told County Council. “Drive-up owner of record, because neither turned out, not County Council. parking in an urban hotel may be Leadership across the street or someplace the city nor county believes they Not so fast, sir have statutory authority to own a else.” hotel. As Mr. Appelbaum finished ex- But that didn’t mollify council Knowledge When the joint financing and op- plaining the foundation and park- members. erating agreement came before ing changes to County Council A push for something new Cleveland City Council for approval members Dec. 3 and was moving Experience this fall, some council members on to other details of the hotel pro- “I can tell you right now, Hunt- wanted assurances that visitors to ject, he was interrupted by council ington is not the answer; for 20 216.861.7200 | www.ostendorf-morris.com City Hall and the nearby Federal president C. Ellen Connolly. years it’s been leaking from the roof Building, convention center and “I just want to cut you off right to the third- floor basement,” said the city-county Justice Center will here and talk about this Huntington councilman Michael Gallagher. be able to find places to park. garage,” Ms. Connolly said. “The “The big plan here should be a big Councilman Anthony Brancatelli, Huntington Park Garage needs a lot parking place attached by a walk- who chairs the community and of work. It is nearly crumbling; it’s way to the north of the (railroad) economic development committee, like falling apart.” tracks.” told Crain’s the deal council ap- Ms. Connolly added that she was Mr. Gallagher was referring to a proved accepted the 260 spaces concerned about whether there plan by the city and county to an- within the hotel as meeting the would be enough room in that chor a pedestrian bridge spanning council’s requirement. garage for people using the Justice from the north edge of the Mall But when the construction plans Center. across railroad tracks and the changed, Mr. Brancatelli and City Mr. Appelbaum countered that Shoreway to the Rock and Roll Hall Council insisted on a provision in improvements to the county garage of Fame and Museum with a park- the cooperative agreement that the are beyond the scope of the hotel ing garage of at least 700 space county had to find no less than 500 project and are the responsibility of alongside the Amtrak station. spaces available to hotel patrons the county. In fact, earlier this year, Mr. Appelbaum said he will con- A Veteran-Owned Small Business within 1,000 feet of the hotel. County Council approved spending tinue to work toward a solution. Mr. Appelbaum had anticipated $1 million to repair cracked con- “We’re going to come up with the need for an alternative and told crete, expansion joints and other other solutions for parking,” he City Council that before the hotel deterioration of the structure, said. “We have to solve for it.” ■ Core Services Creditors’ Rights • Collections • Receivables Management • Bankruptcy

Markets Served Incubators: State pushing Edison groups Business • Finance • Education • Government to ensure startups graduate in good time Ethical, Professional, Excellent Service continued from PAGE 3 turned down the extra cash in order original plan and had sought to be The extra cash was enough of an to keep their operating dollars. exempt from the requirement to Please visit our website www.tmslaw.net incentive to lure six of the 11 Edison They included BioEnterprise Corp. give part of their state money to incubators to choose the second in Cleveland and the Great Lakes client companies. 888-364-7072 option; among them are Magnet, a Innovation & Development Enter- “We asked them to make it an manufacturing-oriented incubator prise (GLIDE) in Elyria, each of option, and fortunately, they did 25651 Detroit Rd, Suite 203, Westlake, OH 44145 in Cleveland, the Youngstown Busi- which received $350,000 grants that,” Mr. Cocco said. ness Incubator and the Braintree from the Third Frontier Commis- Companies that receive money Business Development Center in sion last week, as well as the Akron from an Edison incubator should be Mansfield. Global Business Accelerator, which moving to the point where they no Last week, they each were award- got $500,000 because it houses longer need subsidized office space ed $450,000 grants from the Ohio more businesses. and other incubator services, said Dr. Chagnon, who helps manage the Third Frontier economic develop- The option ‘a’ crowd ment program, which recently be- Third Frontier program. The extra gan managing the Edison incuba- Some incubators that chose op- capital provided by option “b” tors.Officials from both the tion “a” preferred the operating should help companies can gradu- Youngstown and Mansfield incuba- dollars because they already have ate from their incubators, he said. Offering Agressive Financing tors voiced concern about the orig- access to investment capital and The state is pushing the Edison inal plan when Crain’s spoke with other sources of financing for their incubators to make sure their client Up to $10 Million them last April. Even so, they both companies, said Norm Chagnon, companies graduate in a reason- ended up choosing option “b.” deputy chief of the state’s Office of able amount of time by grading the They liked that option “b” pro- Technology Investments. incubators on that measure when Investment Real Estate Over 70 Credit Union Partners vided them with more cash overall. Among them was GLIDE. The in- they apply for grant money, Dr. Owner Occupied Facilities We help credit unions deliver Plus, both incubators already give cubator has a close relationship Chagnon said. exceptional financing options for out small grants and loans, so it will with the Lorain County Communi- What’s a reasonable amount of be a natural transition for them to ty College Foundation’s Innovation time? In April, state officials said Business Term Loans your local business! start offering larger amounts of cap- Fund, which gives grants to star- roughly three to five years. Last ital to more mature startups. tups. That fund has at least a few week, Dr. Chagnon said the state is SBA 7(a) and 504 440-526-8700 “Actually, I think it was probably million dollars at its disposal, so trying to be flexible on that front, [email protected] a good idea,” said Bob Leach, who adding another $200,000 wouldn’t given that different incubators is director of operations at Brain- have a large impact, said GLIDE co- serve different types of startups. Contact Jonathan for more information! tree and chairman of the Edison director Dennis Cocco. The operat- “The time it’s going to take to in- Technology Incubator Directors ing dollars are more important to cubate a software, IT company is Collaborative. GLIDE, which was among the incu- going to be very different from a Five of the 11 Edison incubators bators that were unhappy with the biotech company,” he said. ■

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DECEMBER 16 - 22, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 PUCO: Richard Osborne says he sold stock to pay back FirstMerit continued from PAGE 1 “Most companies just through its distribution. benefit” to customers, the commis- ber public offering sold more than companies “is, in fact, an unprece- The PUCO retrospectively re- sion staff said. 1 million of his 1.4 million Gas Nat- dented recommendation; however, manage the businesses. views company purchases of natur- In its latest order, the PUCO said ural shares for $10 apiece, and Mr. it comes following a series of ex- They’re not interested in al gas on an annual basis. The pur- the two companies failed to prove Smith sold 47,244 of his 50,457 tremely frustrating audits of the growing, they’re not pose of such gas cost recovery their request-for-proposals process shares for the same price. companies, rife with self-dealing interested in serving new reviews is to reconcile the differ- “was reasonable and appropriate,” Mr. Osborne said last week that that demonstrates a remarkable ences, if any, between the amount and directed the companies “to im- he sold his stock because FirstMer- lack of control.” customers.” companies paid for natural gas and mediately commence a new RFP it Bank called a $9.5 million loan he “The companies management – Richard M. Osborne, president the amount the companies’ cus- process with assistance from staff and had used to buy stock and land. He (sic) has demonstrated an alarming and CEO, Gas Natural tomers paid for natural gas. OCC (Ohio Consumers’ Counsel).” said he used the proceeds of the lack of regard for the best interests Back in 2010, as a result of gas The companies, though, had an sale to pay back the loan. of its customer and has put the in- and “it’s not necessarily rare for em- cost recovery audit cases involving expert witness testify that the prices “In no way did I want to sell my terest of ownership ahead of cus- ployees of smaller businesses to the companies, the PUCO and paid to John D. Oil and Gas Market- stock,” he said. tomers,” it added. multi-task.” That said, the compa- Northeast and Orwell reached a ing Co. were prudent, attorney Mr. Gas Natural stock closed at Besides levying punitive fines, the nies are working to “address their stipulation to resolve certain issues, Yurick said. $10.04 on Nov. 1 and $8.01 last corporate makeup,” Mr. Yurick Thursday, Dec. 12. PUCO found the premiums for gas including concerns about related- Suit questions stock sales purchases that Northeast and Or- said. party transactions. Mr. Osborne said Gas Natural well paid to another affiliate com- The commission’s order also cit- Part of that stipulation was that Last week, a shareholder of Gas has acted in the best interests of its pany — John D. Oil and Gas Mar- ed problems with auditing safe- the companies would terminate Natural sued Richard M. Osborne, shareholders and customers. It has keting Co. — were “excessive” and guards and noted its staff cited evi- contracts with their affiliate, John its CFO Mr. Smith and others, alleg- paid a dividend for several years, he ordered that the companies credit dence that the companies bought D. Oil and Gas Marketing Co., and ing the company’s executives un- said, and the companies are com- their customers’ future bills be- and were paying for a Cadillac Es- that Gas Natural would work to de- justly have enriched themselves for mitted to continuing to put their cause “the companies failed to calade for one of Mr. Osborne’s velop and implement a request-for- years, including just recently. profits into the ground to expand demonstrate that their purchasing sons who was not an employee. Ac- proposal process for the gas pur- “Knowing that trouble was immi- pipeline and service to people in policies and procedures were fair, cording to the order, “the account- chases of Northeast and Orwell. nent, defendants Richard Osborne rural Ohio. just, and reasonable or that they re- ing treatment was corrected by According to the PUCO, the com- … and Thomas J. Smith abused “Most companies just manage sulted in minimum gas prices.” The making that individual an employ- panies completed their request-for- their possession of this non-public the businesses,” he said. “They’re adjustments total roughly $580,000 ee of the companies.” proposals process 13 months after information by unloading a mas- not interested in growing, they’re for Northeast and $220,000 for Or- “The commission finds that the the agreed-upon deadline of Nov. 1, sive amount of stock less than two not interested in serving new cus- well, though they will be recalculat- fact that these allegations were not 2011, and Gas Natural ultimately weeks before the 2013 order was tomers. (They’re) interested in ed because the PUCO staff audited disputed by the companies raises selected John D. Oil and Gas Mar- published,” alleges the lawsuit filed managing businesses so they can beyond the prescribed audit period. additional questions about the keting Co., which submitted the Dec. 10 in U.S. District Court in maximize the profit. We’re going “We are concerned that the evi- judgment of the current manage- only bid. The companies’ use of the Cleveland on behalf of Richard J. into new areas every month. These dence shows a pattern of behavior ment of the companies,” the order affiliate for gas procurement “re- Wickham. are people using propane or fuel oil, favoring affiliates of the companies said. sulted in increased costs and little Mr. Osborne in an early Novem- and we’re saving them 50%.” ■ and appearing not at arms-length,” Mr. Yurick said he “respectfully” the order stated. disagrees with the fines levied by The PUCO intends to move “ex- the PUCO and has a “qualm” with peditiously” with the audit, accord- the commission’s statement that ing to the order. the companies didn’t refute some of In the meantime, an attorney for the allegations. three of Gas Natural’s subsidiaries “The commission allowed some said last week he would file a mo- former employees to be subpoe- tion for rehearing, asking the PUCO naed and testify and make allega- to reconsider various points. tions … (and) I wasn’t permitted to “Have there been times that the depose those people or conduct any commission hasn’t agreed with the discovery,” he said. “I don’t know companies’ interpretation of a reg- how I’m supposed to prepare evi- ulatory provision? Yeah, but that’s dence to dispute evidence that I not rare,” said Mark S. Yurick, a don’t know.” partner in the utilities practice of Asked about the findings con- Taft Stettinius & Hollister in Colum- tained in the order and the impend- bus. “There are a lot of laws that ap- ing investigative audit, Richard Os- ply and in some cases, the commis- borne said in an interview last sion is not going to agree with us. So Monday, Dec. 9, that the PUCO is we’re going to have to address that “wrong” in raising concerns about and make adjustments. the practices of the companies. He “I do believe that my clients try to said his son, Richard Jr., used the act in the best interest of their cus- Escalade for environmental work he tomers and try to scrupulously act did for the companies. in accordance with the law,” Mr. Mr. Osborne’s other son, Gregory Yurick said. J. Osborne, in late November was Given that there’s a 30-day peri- promoted to president and chief op- od for filing an appeal, the compa- erating officer of Gas Natural, replac- nies’ deadline for doing so was last ing Kevin J. Degenstein. In a news re- Friday, Dec. 13. No such application lease, Gas Natural’s vice chairman had been filed as of Crain’s deadline W.E. “Gene” Argo said the company Friday. is consolidating its management, ac- An eye on corporate makeup counting and administrative opera- tions in its Mentor offices. Gas Natural, led by president and Richard Osborne said neither the CEO Richard M. Osborne, operates management change nor the pend- local distribution companies in sev- ing retirement of chief financial of- en states and serves roughly 74,000 ficer Thomas J. Smith, announced customers, according to public fil- in early December, is related to the ings. It counts nine natural gas util- PUCO’s order. ity subsidiaries, including Northeast Asked to respond to the PUCO Serving the community for over 20 years. and Orwell. questioning whether Northeast and As of June 2012, Northeast Ohio Orwell are “sufficiently responsible Natural Gas served about 14,100 and capable to continue to manage At SummaCare, our goal is to provide you with residential and 1,060 commercial a public utility in accordance with customers, and Orwell served 7,230 acceptable business practices,” Mr. the resources and tools you need to choose residential and 860 commercial Osborne replied, “Heck yes, we’re health insurance coverage that is right for customers, according to the PUCO. capable. I’ve managed companies you, your family and your budget. As changes The PUCO order said it is con- all my life.” happen with healthcare reform, know that cerned about evidence that shows Go-around over bidding senior management of the regulated SummaCare is evolving to meet your needs. companies “were paid by other re- Another mandate of the PUCO lated companies for which they have order requires that Northeast Ohio no functional duties.” It said some Natural Gas and Orwell Natural Gas Contact your independent insurance agent or visit employees “held senior positional ti- again conduct a bidding process for www.summacare.com/healthcarereform. tles, yet had no knowledge of the the purchase of gas. fiduciary duties and responsibilities Local distribution companies are associated with those titles.” not allowed by law to make a profit But, Mr. Yurick said, these are on the purchase and resale of natur- smaller companies with small staffs, al gas. They are to earn their profits 20131216-NEWS--8-NAT-CCI-CL_-- 12/13/2013 10:54 AM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013

PUBLISHER/EDITORIAL DIRECTOR: John Campanelli ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION A fine mess d FitzGerald and Eric Kearney may have combined to cheat Ohio voters out of a legit- imate race next year for the governor’s seat. E Incumbency already gave John Kasich an edge, though there are issues where the Republican standard-bearer is vulnerable. The Ohio Democrat- ic Party must figure out, and quickly, whether Mr. FitzGerald still is the one to exploit those weakness- es, or whether it needs to find a different candidate to mount a serious challenge to the governor. It was state Sen. Kearney who took the bullet last FROM THE PUBLISHER Tuesday when he announced that his three-week stint as Mr. FitzGerald’s running mate was over and that he wouldn’t be seeking the lieutenant gover- The Cleveland advantage: Helping hands nor’s post. However, Mr. FitzGerald and Sen. Kear- ney both share blame for the fine mess they created s I’m settling into the publish- somewhere at 6:45 a.m.? Not unless it’s individuals mobilized. Most helped at the top of the Democratic ticket. er’s chair here at Crain’s Cleve- an after-after party. without compensation — and without Sen. Kearney is a solid legislator. However, his land Business, I’m learning Second, you guys know how to net- knowing the identity of the company in- work. I’ve seen connections terested in moving here. For all they failure soon after joining the ticket to be forthcom- about Cleveland from aA whole different vantage JOHN established, cards exchanged knew, they could have been recruiting a ing about the extent of back taxes owed by himself, point. CAMPANELLI and emails promised during a competitor. It didn’t seem to matter. his wife and the newspaper publishing business in When I was a reporter at two-minute break at a confer- Sherwin-Williams CEO Chris Connor ence. No joke. It’s a thing of penned a letter extolling the region, Ernst which they were involved left a singular thought in The Plain Dealer, it was more beauty the way professionals & Young and Jones Day provided office voters’ minds: “We pay our taxes; this guy doesn’t.” street level. I interviewed peo- connect with each other space and more than a dozen other com- It isn’t clear whether the FitzGerald team didn’t ple as they rode buses. I talked around here. panies delivered consulting services, data to folks in libraries. I visited dig deep enough into Sen. Kearney’s finances or That’s not to say newspaper and research on real estate, staffing, de- whether it minimized the expected impact of the them in their living rooms. journalists don’t take advan- mographics, incentives and more. senator’s tax troubles, which were not a big deal in Now I’m meeting people in tage of their business cards, “It’s what makes and differentiates the his last run for a Statehouse seat. Either way, voters conference rooms, nice offices too. They do, using them as economic development partners in and at networking events. In have been left to question the judgment of a guber- bookmarks, the back of them Greater Cleveland from others,” GCP’s addition to the general im- natorial candidate who would pick a running mate as to-do lists and the corners Deb Janik told Crain’s reporter Jay Miller. provement in the surroundings (and of them to remove roast beef from be- It’s not just corporate stuff, either. Not with any kind of tax baggage in tow. quality of haircuts), I’m noticing some tween their teeth. too long ago, I asked a local chef why our Within an hour of the announcement that Sen. other interesting differences. But perhaps the most significant dif- relatively small city had become such a Kearney was leaving the race, the Ohio Republican First off, you guys get up early. ference is the way Cleveland business great restaurant town. His answer, with- Party beat on Mr. FitzGerald with both fists. For some godforsaken reason, 7 a.m. people, especially the leadership, help out hesitation, was that in Cleveland the “We have learned a lot about FitzGerald and his meetings are not unusual. We had a great each other. chefs work to support, not destroy, each priorities throughout this entire episode,” party sustainability breakfast last week at Cleve- Last week, we published a Page One other. That’s not the case in other cities. spokesman Chris Schrimpf said in a one-paragraph land State, and people — not just a couple, story on the amazing behind-the-scenes I’ve seen it, too. Almost everyone I’ve but dozens of people — were there at 6:45 news release. “His lack of judgment and honesty cooperation it took to lure Nestle’s Pizza met has asked what they can do to help a.m. Not only that, they looked awake, like Division to town. With Team NEO and me in my new job. It’s inspiring me to will haunt him for the remainder of this campaign.” they had already breezed through five the Greater Cleveland Partnership lead- wake up early, get on the treadmill … Mr. Schrimpf would end his statement with this miles on the treadmill. ing the way, more than two dozen local and pass out a few business cards to the haymaker: “If anyone should leave this race, it’s Get a daily newspaper journalist businesses, colleges, recruiting firms and folks on the ellipticals. ■ FitzGerald, who is clearly not prepared for statewide office.” Mr. FitzGerald is still a year away from wrapping TALK ON THE WEB up just his first term as Cuyahoga County executive. Re: 87.7-FM format change penalty case with the U.S. Department of over printers’ proofs. Even so, we’re not ready to cast him as a member of Commerce in October for several appar- — David O’Loughlin ■ the “not ready for primetime players” on the Such a shame. This news confirmed ent violations of the Export Administra- statewide stage. He has been an effective adminis- my decision to subscribe to XM radio. — tion Regulations. Onward and upward! Re: Renewable energy’s trator and has helped put the corruption-filled years Robert Parker — Jon Yormick advantages ■ As a now FORMER listener to 87.7, of county government behind it. The skill he has ■ this is an EPIC FAIL. Another tricky issue is in decipher- displayed in that job would translate well to the It’s great they are finally accommodat- Re: Cuyahoga County’s deal ing what value to put on “premature” state level. ing Hispanic listeners, but to kill the only with MMPI deaths. Premature by how much? A day? However, as Mr. FitzGerald acknowledged last decent radio station in Cleveland is a ■ This is the guy (Cuyahoga County A year? 466 premature deaths per year in week in an interview with The Columbus Dispatch, crime. It was bad enough when they let Executive Ed FitzGerald) who is attempt- Cleveland is, at first blush, breathtaking, the negative publicity surrounding the ticket “had go Archie Berwick, who was the best ing to run the state. Ohio will be follow- and enough to end all debate over the morning DJ Cleveland has seen in ing Detroit if that happens. Amazing. value proposition of distributed genera- gotten to the point where it was just drowning out tion. But we do need to be careful in how any other discussion we wanted to have.” Whether decades, but bringing back Dan Stans- — Allan Wood bury to afternoons eased the pain a bit. ■ Divorces are expensive. I hope we interpret this sort of data. — Andrew he now is the one to bring the discussion back to You tricked us all into becoming loyal SMG’s deal is incentive driven. Thomas ■ what Sen. Kearney called “the vital issues facing listeners and have just let down probably — Robert Salmon Agreed, Andrew. That is one of the Ohio” is the question the state’s Democratic leaders most of us. Good luck holding on to tricks. Another is the fact that more peo- must answer. sponsors. — Lisa Empkey Re: Amsdell development ple mean more environmental degrada- Ohioans deserve a competitive, issues-base race tion. I think the consideration of a free- downtown standing fact such as better air quality is for the office Gov. Kasich holds. It will be extremely Re: GrafTech’s Orion ■ Financial printer Judson-Brooks more agreeable than the somewhat neb- disappointing if the Ohio Democratic Party can’t spacecraft contract (now owned by Donnelly) previously oc- ulous concept of “lives saved,” which … deliver one. ■ It is good to read a positive story cupied one of the buildings. I have many is affected in varying ways by a complex about GrafTech after it settled a civil fond memories of spending late nights set of influences. — John Dzwonczyk 20131216-NEWS--9-NAT-CCI-CL_-- 12/12/2013 3:39 PM Page 1

DECEMBER 16 - 22, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Taste: New path brings new challenges Smart space continued from PAGE 3 But once he opens Next Door in early 2014 — which, as the name from any angle. implies, will be next to Dante — the globally experienced chef will focus on developing a fast-casual Italian concept that could be replicated in airports and suburban shopping destinations. “There’s not a lot of babysitting with fast-casual franchises since they follow the same standards,” he said. Mr. Boccuzzi is among a handful of recognizable names — including Michael Symon, Rocco Whalen and Matt Fish — who are expanding their eateries or ancillary products into markets beyond Northeast Ohio, thereby building a broader Galleria & Tower @ Erieview JANET CENTURY business presence. Dante Boccuzzi, left, goes over plans for his new Tremont restaurant, Next Door, Thanks to the Food Network, social with Tom Marenchek, center, of Ace Fixtures and general contractor Tim media and exposure in leading indus- Interested in leasing the best views in Cleveland? Jeffries. 1301 E. Ninth St. try publications, the Cleveland-based Contact: David C. Wagner - 216.360.0009 lieves Northeast Ohio still has the Cleveland, OH proprietors already are familiar HannaChartwell.com names among their target markets, potential for a couple more Melt lo- said Bonnie Riggs, a restaurant indus- Burgers that cations, along with more outposts try analyst for NPD Group, a global throughout Columbus and beyond. market research firm in New York. hit the spot Kings of the keyboard Because of that increased aware- ness, customers are energized Celebrity chef Michael Symon Driftwood Restaurant Group, a when chefs from food-centric cities plans to open in 2014 six more B partnership of seasoned restaura- such as Cleveland are investing in Spots, beyond the locations in teur Scott Kuhn and celebrity chef their communities, thus easing the Westlake, Woodmere and Chris Hodgson, so far only operates barrier of new market entry. Strongsville and three entertain- one out-of-state eatery, Allegheny “We all love to try new things,” ment/sports venues in downtown Grille in Foxburg, Pa., Mr. Kuhn has Ms. Riggs said. Cleveland. Targeted cities are found the remote venture along the Yet despite that brand familiari- Detroit, Columbus, Pittsburgh, Allegheny River requires constant ty, forging a new path beyond one’s Washington, D.C., Las Vegas and communication. home base comes with its own set Cleveland, involving a mix of “A restaurant takes on the person- of considerations and challenges. airport, hotel, casino and street ality of the person running it,” he said. “If you don’t have a direct pres- PR offensive in Charlotte restaurants, according to Doug Petkovic, a business partner of ence in the space, it takes a whole lot Rocco Whalen, chef and owner of Michael Symon Restaurants. Mr. of emails and teleconferences to keep Fahrenheit as well as Rosie & Roc- Symon in 2012 opened Bar your fingers on the business.” co’s, a quick-service Italian concept Symon at Pittsburgh International A member of company manage- found at Horseshoe Cleveland Casi- Airport. — Kathy Ames Carr ment also makes the two-hour dri- no, Quicken Loans Arena and ve weekly to oversee operations. FirstEnergy Stadium, said he was Meanwhile, the restaurant group Save the date: approached by developers of a 22- land river water. that already operates Hodge’s, story luxury high-rise in Charlotte “It has more stuff from the Washington Place Bistro, 87 West to ice the top of that building with Earth’s crust, so the chemical com- and four other eateries in the Cleve- Thursday, February 20, 2014 an 8,000-square-foot Fahrenheit. position is different,” Mr. Cole said. land area has opened within the Mr. Whalen said he thinks his ex- Mr. Cole’s long-term goal — in last year two PlayhouseSquare Executive Caterers at Landerhaven posure as a result of his 2012 partic- partnership with a restaurant group eateries — Cibreo and Rothschild ipation on the Food Network’s “Fat he declined to identify — is to ex- Farms — with plans to increase its Chef” may have played a role in the pand into Washington, California, presence in that downtown district. developers’ interest. But even with Colorado and Texas. It also is casting a wider net with a that visibility, Mr. Whalen recently “We’d also like to see our beer 2014 opening of restaurants in hired a public relations firm for the packaged in cans for West Coast DoubleTree by Hilton hotels in first time in his career to market his distribution,” he said. Beachwood and Westlake. new restaurant. Meanwhile, he’s looking to fur- Mr. Kuhn has said he believes the “When I purchased the lease … ther Fat Head’s local market pene- deal with Twin Tier Hospitality, a on Professor (Avenue in Tremont) tration, and is scouting Ohio City Pennsylvania-based hotel operator Venue sponsor and opened Fahrenheit early in for a brewpub expansion. that runs the two DoubleTree prop- erties, presents opportunities 2002, I had no idea what public re- Melt keeps on truckin’ lations were. I self-promoted,” Mr. throughout Ohio and beyond for Whalen said. Matt Fish’s fifth Melt Bar and more restaurants. Though Mr. Whalen plans regular Grilled opened just last month in Sawyer serves up vinegar trips to oversee the Charlotte opera- Columbus — the first foray outside tion, the chef emphasizes his roots Northeast Ohio for his eclectic Jonathon Sawyer, who has are in Cleveland. He said he even is grilled cheese restaurants. gained national attention for his considering relocating Fahrenheit “Moving to Columbus will help Greenhouse Tavern on East Fourth downtown and reimagining the us prove that the brand is not just a Street in downtown Cleveland be- Tremont location, much as Michael local success,” he said. cause of its emphasis on locally Symon did with Lola and Lolita. However, Mr. Fish said has no sourced ingredients and his sus- immediate plans to open another tainability practices, is taking a dif- Testing the water, literally Melt, noting that shipping ingredi- ferent road to market expansion. Matt Cole, owner of Fat Head’s ents two hours south adds a new The November launch of Tavern Brewery at 24581 Lorain Road in challenge to his business. Vinegar Co. in partnership with North Olmsted, moved this month Nearly all the menu items — Columbus-based Middle West Spir- out to Portland, Ore., for five months from the bread and sandwich its invigorates the chef’s hobby of to open by mid-summer a second dressings to sauces and soups — making hand-crafted, barrel-aged brewpub at that craft beer mecca. are made from scratch at Melt’s vinegars. Those products either are “Why not? We’re a very hop-for- commissary in Cleveland’s Mid- or will be available in select locations ward brewery, and 30% of the world’s town neighborhood, then are deliv- in Boston, Chicago, Houston, Los hops are harvested from Washington ered to its four Cleveland-area loca- Angeles, New York and other cities. and Oregon,” Mr. Cole said. tions. Mr. Fish had to add a second “Our target client base is food- Once that brewpub is open, Mr. delivery truck once the Columbus minded cities,” Mr. Sawyer said. Cole said, he will make the cross- store opened; shipments began at Initial production calls for about Advertising & sponsorship opportunities country commute from Cleveland four times a week but now are six 30,000 bottles annually, with a 30% to Portland one week a month for a times a week to ensure enough to 50% increase over the next cou- year. A myriad of factors — from products are on hand. ple years, he said. Contact Michelle Sustar at regulations to understanding con- “We want to make sure all “Our goal is 100,000 bottles a sumer expectations — accompany recipes are made at our commis- year, but we’re moving slowly,” Mr. 216-771-5371 or [email protected] the growth learning curve. So does sary so we have that consistency at Sawyer said. “It takes months to adjusting beer recipes to the Port- each Melt,” said Mr. Fish, who be- make vinegar.” ■ 20131216-NEWS--10-NAT-CCI-CL_-- 12/12/2013 3:40 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013

TAX LIENS

The Internal Revenue Service filed tax unemployment Clifford Thomas DDS Inc. liens against the following businesses Amount: $8,031 in the Cuyahoga County Recorder’s 14601 Detroit Ave., Lakewood Office. The IRS files a tax lien to Flashnotes Biz ID: 34-1742888 protect the interests of the federal 5257 Millwood Drive, Broadview Date filed: Oct. 5, 2010 Heights Date released: Nov. 5, 2013 government. The lien is a public Anzevino Solove Daley Buyarski notice to creditors that the ID: 27-2183536 Type: Employer’s withholding government has a claim against a Date filed: Nov. 5, 2013 Amount: $8,821 company’s property. Liens reported Type: Partnership income Amount: $6,435 Emerald Painting here are $5,000 and higher. Dates & Decorating Inc. listed are the dates the documents Quest Technology Systems Inc. 496 E. 200 St., Euclid were filed in the Recorder’s Office. 4536 Pearl Road, Cleveland ID: 34-1846730 Apple Construction ID: 34-1782662 Date filed: May 22, 2012 2893 Euclid Heights Blvd., Cleveland Date filed: Nov. 5, 2013 Date released: Nov. 5, 2013 Type: Employer’s withholding, Type: Employer’s withholding Heights Masica Kumar Stamler Nordquest ID: 34-1745285 corporate income Amount: $10,978 Amount: $6,002 Date filed: Nov. 5, 2013 Giant Petroleum Inc. Type: Employer’s withholding Wilhelm Dance Co. 12436 Euclid Ave., Cleveland GOING PLACES Amount: $10,700 19555 Center Ridge Road, Rocky ID: 26-3516983 El & Beriha Corp. TA JJ’s Food River Date filed: Dec. 16, 2011 JOB CHANGES Krutkiewicz to health & Deli ID: 26-0569114 Date released: Nov. 5, 2013 management coordinator. 4282 W. 130 St., Cleveland Date filed: Nov. 5, 2013 Type: Unemployment, employer’s AUTOMOTIVE Type: Failure to file complete return annual federal tax return LEGAL ID: 34-1874840 COLLECTION AUTO GROUP: Amount: $5,745 Amount: $24,035 Date filed: Nov. 5, 2013 Dennis Lafferty to vice president, JONES DAY: Justin Herdman to of Type: Employer’s withholding, LIENS RELEASED Heights Laundry strategic operations and community counsel. unemployment & Dry Cleaning Inc. relations. WELTMAN, WEINBERG & REIS Amount: $8,552 Accounting Services 2 5596 Mayfield Road, Lyndhurst CO.: Courtney J. Blowers to All Care Transportation LLC 1285 W. Ninth St., Cleveland ID: 34-0823743 CONSULTING associate. 13117 Cedar Road, Cleveland ID: 26-3550329 Date filed: June 26, 2013 TRINITY PENSION Heights Date filed: Nov. 30, 2011 Date released: Nov. 5, 2013 CONSULTANTS: Gary Geiger to MANUFACTURING ID: 30-0555942 Date released: Nov. 5, 2013 Type: Employer’s withholding, defined benefit rtelationship FEDERAL METAL CO.: Michael Date filed: Nov. 5, 2013 Type: Employer’s withholding unemployment manager. Buyarski to COO. Type: Employer’s withholding, Amount: $24,318 Amount: $18,267 EDUCATION REAL ESTATE BEAUMONT SCHOOL: Molly GERSPACHER REAL ESTATE Drake to public relations and GROUP: Steve Masica to real marketing manager; Stephanie estate agent and consultant. Luck DeLuca to recruitment and TRANSACTION REALTY: J.B. admissions associate. Spencer and Randy Cramer to Save the date sales associates. ENGINEERING Tuesday, CT CONSULTANTS INC.: Gene RETAIL April 15, 2014 Arters to engineer 4. SPECIALTY FITNESS EQUIPMENT: Chuck Herman to managing EVENTS partner. EXPERIENT: Dawn D. Rockas to TODAY’S BUSINESS PRODUCTS: strategic sales executive, association Rachel James to furniture market. operations manager. FINANCE TECHNICAL PNC FINANCIAL SERVICES C.TRAC: Brooke Winslow to CIO GROUP INC.: Dina A. Anzevino to OF THE YEAR marketing specialist; Jennifer Grove vice president, team director, PNC to account director. Wealth Management. PARK PLACE TECHNOLOGIES: Ken Barhoover to director, FINANCIAL SERVICE interactive marketing; Pattie Kilroy AXA ADVISORS: Alex Solove and to vice president, channel Melissa Daley to financial profes- development; Jackie Canter to man- 2014 sionals, Retirement Benefits Group. ager, pricing and contracts. CIUNI & PANICHI INC.: Silvia McClellan to staff accountant. AWARDS LANDING POINT FINANCIAL AKRON COUNCIL OF NOW ACCEPTING NOMINATIONS GROUP: Susan S. Vasu to practice ENGINEERING AND SCIENTIFIC manager. SOCIETIES: Satyendra Kumar MCGLADREY LLP: Matt Garvey, (Kent State University) received the Jessica Hartman and Paul Nadin Distinguished Award of Council. PRESENTED BY to assurance directors; Steve AMERICAN HEART ASSOCIATION: Ansberry, John Guyer and Jonathan Stamler, M.D. (University Amolika Phadke to assurance Hospitals Case Medical Center) managers. received the 2013 Distinguished SKODA MINOTTI: Sean Burris to Scientist Award. art director, strategic marketing MIDWEST CARE ALLIANCE: Mary services group. Ellen Yeager (Akron General Hospice of Visiting Nurse Service For nomination inquiries email INSURANCE volunteer) received the Volunteers are the Heart of Hospice Award. OSWALD COS.: Heather Casselberry, Mary Fessler and PRACTICE MANAGEMENT at Denise Lamb to client service INSTITUTE: Dennis Nordquest Kim Hill [email protected] administrators; Susan Loy to ERC (Akron General) received the health data management specialist; 2012-2013 Outstanding National or visit Meghan George to senior client ser- Host Client Award. vice administrator; Natalie Yakunich to ERC health wellness RETIREMENT CrainsCleveland.com/CIO representative; Lisa Michalk to ERC WELTMAN, WEINBERG & REIS health wellness consultant; Mitchell CO.: Alan H. Weinberg, after 40 Berman and James Patterson to years of service. benefit counselors; Nicole Pawlows- Deadline: February 3, 2014 ki to health management consultant; Robin Kish to senior health manage- Send information for Going Places ment consultant; Pamela to [email protected]. 20131216-NEWS--11-NAT-CCI-CL_-- 12/12/2013 4:15 PM Page 1

2013NEWSMAKERS

look back at the headlines of 2013 offers a mix of good turnaround and revival became more common. news — and well, not so good news. Long talked-about Then, of course, there were the not-so-flattering stories linked developments such as the Global Center for Health to the leaders of some of region’s top organizations. Innovation, Convention Center and work to the In this section, we take a look at some of those who helped shape AmeritrustA complex became a reality, and a mentality of the headlines of the past year — for the better or the worse.

ED FITZGERALD TIMELINES GEIS BROTHERS TIMELINE ■ FRANK JACKSON Geis Cos. Jan. 22: Cuyahoga County Council rati- FRANK JACKSON ■ June 5: With Cuyahoga County Execu- fies Cuyahoga County Executive Ed FitzGer- By STAN BULLARD tive FitzGerald, Mayor Jackson announces an ald’s proposal to sell the old five-building cor- Cuyahoga County [email protected] agreement to jointly commit $350 million to porate headquarters of Ameritrust Corp. to City of Cleveland redevelop downtown Cleveland. affiliates of Geis Cos. for $27 million. The ■ June 11: Mayor Jackson announces oving “at the speed of Geis” is an Geis brothers agree to build a new headquar- By JAY MILLER inside joke among associates at ters for the county on the Prospect Avenue [email protected] disciplinary action for 11 police sergeants and supervisors for their roles in the police chase the Streetsboro-based real estate side of the site. The plan calls for the 29-sto- Nov. 29, 2012, that ended in the fatal development and construction ry former corporate headquarters and two at- n June 5, Cuyahoga County Execu- Mfirm. Northeast Ohio witnessed it in 2013. shooting of two fleeing suspects. tached buildings to become a mixed-use tive Ed FitzGerald and Cleveland ■ In less than a year, the apartment, hotel and retail complex. Mayor Frank Jackson stood togeth- Sept. 30: The Jackson administration tells city council it will be asking Westlake company took the Amer- ■ March 14: Cleveland-Cuyahoga County er behind a podium on Lakeside itrust complex, which in- Port Authority’s board of directors authorizes OAvenue, in the line of homeowners for $291 a quarter for five years cludes a 29-story office the sale of $90 million in tax-exempt bonds to sight from both Mr. to cover the cost of Westlake’s plan to start buying its water from the Avon Lake system. tower that had stood finance the construction of a new county FitzGerald’s office in the empty for two decades, headquarters building. county administration Westlake would eventually sue Cleveland to block the charge. and began reshaping it ■ April 9: Demolition of two buildings on building and Mayor Jack- ■ as a $250 million real es- Prospect Avenue begins to create the site for son’s office at Cleveland Nov. 5: Mayor Jackson wins election to a third term as mayor of Cleveland. tate development pro- the new county headquarters building. City Hall. ■ ject. Two buildings on its Fred Geis ■ May 14: Members of the Greater Cleve- They were there to an- Nov. 19: He announces an agreement to commit $2 million a year for the next 15 Prospect Avenue side land Mortgage Bankers Association trade nounce an agreement to were razed. In their place group hear that Geis will call the apartment pool their resources on a FitzGerald years toward the Browns’ plan for a $120 million upgrade of FirstEnergy Stadium. stands by year’s end an and hotel portions of the former Ameritrust $350 million downtown eight-story structural ED FITZGERALD tower “The M on 9th,” which the company lat- redevelopment plan that frame that will become ■ Feb. 19: In his State of the County ad- er shortened to “The M.” would link Public Square Cuyahoga County’s new ■ dress, Mr. FitzGerald reveals a plan to bring a Sept. 13: Heinen’s announces it will in- to the Lake Erie water- headquarters. In the major exhibition to Cleveland — reminiscent stall a grocery store in the old Ameritrust ro- front. meantime, a Heinen’s of the Great Lakes Exposition of 1936 — that tunda and on the first floor of the adjoining It was one of 2013’s grocery store was would showcase the community’s accomplish- Swetland Building, 1010 Euclid Ave. biggest news stories. It snagged for the com- Greg Geis ■ Oct. 4: Geis announces the 156-room was an opportunity for a ments in areas such as medicine, health care, plex’s landmark rotunda. hotel will be named the Metropolitan and will political leader to bask in music and the performing arts. The 29-story tower and adjoining Swetland be part of Marriott International’s “Autograph the warm glow of public ■ April 24: Mr. FitzGerald makes his long- Jackson Building, 1010 Euclid Ave., were gutted to Collection.” praise for his or her lead- expected announcement that he will run for make way to become a hotel, apartments, ■ Nov. 21: The port authority board OKs ership and vision. governor in 2014. offices and restaurants. the sale of $57 million in tax-exempt revenue For any other two politicians, especially ■ May 31: He presides over the opening As hard as it is to believe — especially in bonds to finance the hotel and apartment sec- two facing election campaigns as these two of the $465 million Cleveland Convention Cen- downtown Cleveland where projects often tions of The 9. were — Mayor Jackson was seeking re-elec- ter and Global Center for Health Innovation. ■ June 5: With Mayor Jackson, he an- linger for years — the starting gun for all tion to a third term as mayor and Mr. FitzGer- that work went off last January, when ald has his eyes on the governor’s office — nounces an agreement to jointly commit $350 watch, became a regional powerhouse in million to redevelop Downtown Cleveland. brothers Greg and Fred Geis won a bidding the suburbs years before they climbed into there might not have been enough of a warm process for the county-owned site. They glow to share. But for this pair, standing to- ■ Dec. 10: The FitzGerald for Governor the market inside Cleveland’s city limits. then sold the county on using part of the gether has had its rewards for the benefit of 2014 campaign announces that state Sen. In the same way the old bank skyscraper site for a leased building for the county’s the overlapping communities they serve. Eric Kearney will not run for lieutenant gover- stands out on the city’s skyline, the Geis own proposed headquarters. It shouldn’t be surprising that the mayor nor in 2014 after details of the senator’s tax Cos. and its owners are in the spotlight to Such a megaproject typically takes two of the region’s largest city and the head of problems festered in the two weeks since Mr. produce in 2014. They have to deliver the years for architects and engineers simply to the state’s largest county would make this FitzGerald announced him as his running county building July 15. They also have set design, much less turn it almost immedi- year’s list of top newsmakers, even without mate. Mr. FitzGerald said he will not name a their own public deadline to open the M in ately into a massive construction job. a blockbuster joint announcement. replacement until next year. the fall. Tom Yablonsky, vice president of Down- What is perhaps surprising, though, is town Cleveland Alliance, said the Geis team how often they cropped up in the same Bank that is raising money for rehabilitating quickly grasped how valuable state and fed- What they said news stories throughout the year. or demolishing vacant and abandoned prop- eral historic tax credits were to the project ■ It’s a reflection of the growing realization erties in the city and the suburbs. Fred Geis, May 20, Crain’s: “It’s going when he met with them as they prepared that they represent constituencies that need The two shared another podium in June, to be a circus.” (Talking about more than their bid to the county for the site in late each other. For Cleveland, it’s a matter of at the opening of the new Cleveland Con- 1,000 workers on the site daily at the peak linking up with a financially stronger part- vention Center and Global Center for 2012. The final project was conceived so it of construction of the $250 million Amer- ner in the face of a declining city tax base as Health Innovation and they appeared side maximized those and other financial incen- itrust project) tives, he said, noting their process “is fast population drops and homes are aban- by side when they welcomed President What others are saying doned. For Mr. FitzGerald, it’s an acknowl- Obama to the city in November. but not haphazard.” edgement that the central city is critical to Naturally, each made news separately. The performance brings to mind the say- ■ John Ferchill, CEO, Ferchill Group, the continued vitality of the suburbs, which And for the most part, the news they made ing about how years of preparation breeds Cleveland: “I think there was a lot of is his exclusive constituency. together has been well received — what instant success. lamenting when they got the Cuyahoga In addition to the redevelopment of they did separately, not so much. John Ferchill, the national real estate de- County deal. It’s obvious (now) that they downtown, the administrations of Messrs. Mr. FitzGerald most recently found him- veloper based here who is friends with Fred were the right choice.” Jackson and FitzGerald are working togeth- self in the headlines when the man he chose Geis, said, “They pushed the envelope to a ■ Tom Yablonsky, vice president, Down- er to back an extension of the sin tax on al- as a running mate in his run for governor, level I never thought they would get. I don’t town Cleveland Alliance and executive di- coholic beverages and tobacco products state Sen. Eric Kearney, flamed out after it think anyone realized these guys did a lot of rector of Historic Gateway Neighborhood that finances the Gateway sports complex was discovered he and his wife owed nearly big stuff before. It just wasn’t downtown. and Historic Warehouse District Develop- and FirstEnergy Stadium. $1 million in back taxes. They hired some very good people for their ment Corp.: “A lot of people talk and don’t The pair also support plans for a new He also struggled this year in his relation- team, brought them in and learned what do. They clearly do. A lot of (real estate de- roadway through Cleveland’s East Side — ship with the county council, which is be- they had to do.” velopers) structure deals so that they don’t the Opportunity Corridor. ginning to assert its independence three Credit some of that skill to both brothers own the property if all the pieces don’t Additionally, both administrations are part years after its creation. growing up in a family-owned construction come together; we saw Geis buy the proper- of a consortium with the Cuyahoga Land See FITZGERALD AND JACKSON Page 14 and development firm which, under their ty and then move forward.” 20131216-NEWS--12-NAT-CCI-CL_-- 12/12/2013 2:32 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS 2013NEWSMAKERS DECEMBER 16 - 22, 2013

reboot of sorts at the health sys- DR. AKRAM tem. He hasn’t been shy in reach- TIMELINE JENNIFFER TIMELINE BOUTROS ing out to those who had felt ■ May 8: Dr. Boutros is named DECKARD ■ Jan. 23: While Ms. Deckard is neglected by MetroHealth’s MetroHealth’s next CEO. He was the still president, Fairmount opens a The MetroHealth System administration in recent years, health system’s second choice, as Fairmount Minerals new terminal to deliver proppant such as its employee union. the board’s first choice, Dr. John sand to oil and gas drillers in the Uti- By TIMOTHY MAGAW By DAN SHINGLER MetroHealth’s leaders had been Brennan, backed out of the job. ca and Marcellus shale plays, follow- [email protected] [email protected] criticized in recent years for what ■ June 1: Dr. Boutros takes over ing up on its previous growth in the some observers considered unwar- as CEO of MetroHealth and later hydraulic fracking industry. he final months of 2012 hat else can you say — ranted administrative bonuses, fi- that month unveils his strategic plan ■ May 14: Fairmount’s Santrol proved difficult for The it was a big year for Jen- nancial mismanagement and poor for the health system. unit acquires new technology that Metro- niffer Deckard and the public relations. So far in his rela- ■ July 11: MetroHealth opens a helps sand to float in hydraulic frac- Health tively short tenure, Dr. Boutros has com- turing fluid — a potentially important $23 million health center in panyW she now TSystem. made advancements in all those ar- Middleburg Heights. development for shale gas and oil The man who runs, Chester- eas. He has reworked the health sys- ■ Oct. 22: MetroHealth drilling. promised to take land-based Fair- ■ tem’s administrative bonus struc- announces plans for a sprawling May 30: Ms. Deckard is over as CEO mount Minerals. ture, launched an initiative aimed at health center straddling the suburbs named CEO of Fairmount Minerals backed out of Fairmount’s Ltd., succeeding longtime chief improving patient experience and of Brecksville and Broadview Heights. the job just taken a hard look at its books. been on a tear executive Chuck Fowler. weeks after ac- Of course, Dr. Boutros’ outgoing ever since oil ■ June 26: Fairmount’s Santrol cepting the offer. The health sys- and gregarious personality only their clinical outcomes, their poor and gas drillers unit acquires a major operation from tem scrambled to appoint an in- will get him so far. Keeping Metro- service and are usually financially discovered that Northern White Sand Mine in terim leader as Mark Moran Health in the black has always weak. What are we going to be they could extract more of the stuff Minnesota. they were after if they pumped wa- quietly exited the CEO post more been a challenge, as many of its known for? Just the opposite.” ■ July 24: Fairmount acquires ter and some other stuff deep into than a year after he announced his patients are uninsured and unable additional major assets, including What others are saying subterranean shale deposits to intention to step down. to pay their bills. Its main campus sand-mining operations, resin-coat- bust up the rock. Enter Dr. Akram Boutros, a for- needs a major facelift — one that ■ Thomas McDonald, Metro- ing plants and shipping terminals in Some of that other stuff is the could cost as much as $650 million Health’s board chairman: “The a transaction with FTS International. mer health care consultant ap- very sand that Fairmount mines, — and the health system must find employees have gravitated toward pointed as MetroHealth’s next and the company has grown in the money to pay for it. Dr. him amazingly. He’s just getting taken upon itself to become an in- CEO last May. It didn’t take long lockstep with the nation’s horizon- started. There’s a lot of great stuff dustry leader in the area of sustain- for Dr. Boutros to make his pres- Boutros also must have the busi- tal drilling and hydraulic fractur- on the horizon for MetroHealth. ability and social responsibility. ence known at the hospital or ness acumen to ensure that the ing, or “fracking” industry. Fair- We’re excited and energized … By All with Ms. Deckard at the throughout Cuyahoga County. health system’s strategy to build mount, a private company, does wheel and now fully in charge of While he was the health system’s freestanding health centers the way, he’s also a very good not reveal its revenues, but it’s the helm. second choice for the job, Dr. throughout the county takes hold. businessman. Our results are widely believed that the company Little wonder her predecessor as Boutros embraced the role as if he Dr. Boutros has conceded that proving that.” now brings in a billion dollars a ■ CEO, Chuck Fowler, and the com- was destined for it. MetroHealth might not meet every Ed FitzGerald, Cuyahoga year from its frack-sand sales. pany’s board has put its trust in The particularly blunt Dr. goal it sets for itself, and he’s OK County executive: “We are part- Ms. Deckard is both riding and Ms. Deckard’s leadership. Boutros talks a big game. He with that. nering with Dr. Boutros and guiding that growth. stresses often that MetroHealth “How motivating is it for the team MetroHealth on a first-of- its-kind After serving as president of What she said should be known as one of the when you’re all working on some- partnership to provide a Fairmount for the past two years, ■ best health care providers in the thing and you don’t make it?” Dr. HealthSpot station for our em- she was named in May to be the Upon announcing Fair- country, not as the financially Boutros said in an interview earlier ployees to virtually seek medical company’s CEO. No small accom- mount’s sustainable development stressed hospital subsidized by this year with Crain’s. “The greatest care from a physician. In working plishment, especially in a mining progress in August: “With the Cuyahoga County taxpayers. athletes have only performed extra- with Dr. Boutros on this project, I industry not exactly known for amount of talent within Fairmount Rarely is he found in the C-suite at ordinary feats after failures.” witnessed the new energy and vi- having a multitude of top female Minerals and with our commit- ment to ongoing conversations MetroHealth’s main campus off What he said sion that he brings to the Metro- executives. West 25th Street in Cleveland. In- Health System, and I believe he Fairmount, however, appears to with our stakeholders, we have stead, he’s routinely mingling with ■ In an interview last summer will take Metro to the next level of be more progressive than most. limitless potential for growth and patients and employees. with Crain’s about his vision for health care. We are looking for- Not only has it put Ms. Deckard in innovation.” While he has been on the job for MetroHealth: “Most public health ward to continuing our partner- its top post, but under her leader- What others are saying less than a year, Dr. Boutros has systems in the nation are severely ship with Dr. Boutros and the ship the company is a leader both ■ been responsible for a cultural criticized for their bureaucracy, MetroHealth System.” technologically and socially. Outgoing Fairmount CEO Not content to merely sell plain Chuck Fowler in announcing Ms. sand, Fairmount has found ways to Deckard’s promotion as his succes- improve its product. Special coat- sor: “I am extremely confident that ings and treatments make the sand under Jenniffer’s leadership Fair- tougher and better able to hold mount will continue to grow as a re- open cracks in the shale where it is sult of her continuing emphasis on used. Still more advanced process- technical and commercial develop- es allow that coated sand to sus- ments, acquisitions and organic ex- pend in solution, rather than sink, pansions, while emphasizing the which also increases its efficacy for strength of Fairmount’s dedication shale drillers. to the keys of Sustainability, the three In the meantime, Fairmount has P’s: People, Planet and Prosperity.”

regular-season Expertise Pays Off TERRY FRANCONA games, and they Cleveland Indians needed every For more than 80 years, we have helped middle one in order to THYRL[JVTWHUPLZHJOPL]LÄUHUJPHSZ\JJLZZ By KEVIN KLEPS beat out the [email protected] Texas Rangers -PUHUJPHS[H_0;HUKVYNHUPaH[PVUHSK\LKPSPNLUJL and Tampa Bay he Cleveland Indians Rays in the race 7\YJOHZLHJJV\U[PUNJVUZ\S[H[PVU had five losing streaks of for the American ;H_Z[Y\J[\YPUN at least five games in League’s two wild-card berths. The + Risk assessment/risk mitigation 2013. Tribe finished the regular season TEach time, they bounced back in 92-70, a 24-win improvement from (\KP[[H_HUKHK]PZVY`ZLY]PJLZ their first season under manager 2012 that matched the 1986 Indi- 3L[V\YRUV^SLKNLL_WLYPLUJLHUKL_WLY[PZLILHU Terry Francona, who was hired in ans for the biggest season-to-sea- October 2012 and led the Boston son leap in franchise history. HZZL[[V`V\YJVTWHU`»ZVWLYH[PVUZTHUHNLTLU[ Red Sox to World Series champi- The Indians’ playoff trip was a HUKZOHYLOVSKLYZ onships in 2004 and 2007. brief one. They lost 4-0 to the Rays The resilience was never more in the AL wild-card game at sold- evident than after the Tribe fol- out Progressive Field on Oct. 2. lowed a five-game losing streak to But a positive tone has been set end August by going 21-6 in Sep- by Mr. Francona, who is signed tember and clinching their first through the 2016 season. postseason berth since 2007. “I think we all get down when “That’s such a separator for him,” we’re not playing well,” Mr. Fran- Indians president Mark Shapiro said cona said. “What’s important is Cleveland | 216.363.0100 of his manager’s ability to keep the how you react to it — whether you Canton | 330.966.9400 Tribe on track. “He has a clear sense feel sorry for yourself or try to find Elyria | 440.323.3200 of urgency and expects to win every a way to dig out of it. You try to Business Advisors and game. But when you don’t win, he surround yourself with people you Certified Public Accountants maloneynovotny.com respects how hard it is, and is sup- trust — people you can lean on portive of the players and is on to when times get tough.” the next day.” The Indians won their final 10 See FRANCONA Page 13 20131216-NEWS--13-NAT-CCI-CL_-- 12/12/2013 3:39 PM Page 1

DECEMBER 16 - 22, 2013 2013NEWSMAKERS CRAIN’S CLEVELAND BUSINESS 13

had deleted emails during his fir- stadium that will include massive DAVID FRANKLIN ing of an assistant curator. Dr. TIMELINE JIMMY HASLAM new scoreboards in each end zone, Franklin filed a lawsuit and subse- LED video boards, a new audio sys- Formerly of the ■ Oct. 21: Dr. Franklin an- Cleveland Browns quently was rehired by the Nation- tem, new escalators and several nounces his resignation as director Cleveland Museum of Art al Gallery, though the episode in- other improvements. of the Cleveland Museum of Art, ef- By KEVIN KLEPS volved what The New York Times During that time, Mr. Haslam By SCOTT SUTTELL fective immediately. The announce- [email protected] characterized as “the release of a wasn’t as publicly visible in North- [email protected] ment does not state a reason. series of unusually vitriolic internal east Ohio as he had been in the ■ Oct. 22: Commenters on n the same day, Nov. 25, email messages.” (Dr. Franklin months after buying the Browns for avid Franklin came to the Cleveland.com and Scene’s website that Cleveland City Coun- said in 2010 when he was hired in $1 billion from Randy Lerner in 2012. Cleve- begin talking about an affair Dr. cil agreed to the financing The reason: Mr. Haslam’s other land Cleveland that the allegations Franklin had with a museum employ- plan for about the emails were never sub- Oa two-year, $120 business — Pilot Flying J — was Muse- ee who subsequently committed under fire for cheating trucking Dum of Art in Sep- stantiated.) million upgrade suicide. Scene that evening posts a companies out of rebates. tember 2010 Dr. Franklin’s departure came as story about the affair but does not to FirstEnergy Seven Pilot employees have en- with a hint of the museum was putting the fin- name the woman, who later is Stadium, Cleve- tered guilty pleas in the wide-rang- controversy in ishing touches on a $350 million identified as Christina Gaston. Ms. land Browns ing probe. An FBI affidavit that was his past. He left expansion project that has re- Gaston committed suicide in late owner Jimmy unsealed in April alleged that Mr. the museum in late October amid ceived raves in the art and archi- April. Haslam was Haslam knew about the fraud — a full-blown scandal that involved tectural worlds. ■ Oct. 23: Mr. Kestner, a Cleve- tending to other matters. which the Browns’ owner has the suicide of a woman with whom Museum trustee Fred Bidwell is land lawyer and chairman of the In Little Rock, Ark., a federal strongly denied. he had an serving as interim director until a museum board, confirms that an judge approved an $84.9 million Mr. Haslam repeatedly has said extramarital affair. new director is in place. The retired settlement that will be paid to 5,500 extramarital affair with a museum he has no plans to sell the team, and advertising executive and his wife, trucking companies that were vic- The museum on Oct. 21 an- employee led to Dr. Franklin’s resig- his hire of Joe Banner to manage the nounced that Dr. Franklin, an ex- Laura, have a longstanding com- nation. (Mr. Kestner later clarified tims of a rebate scam by Pilot Flying mitment to the arts. Most recently, Browns’ day-to-day operations has pert in Italian Renaissance art, was that it was lies about the affair that J, Mr. Haslam’s Knoxville, Tenn.- seemed to be a wise move. resigning from the job “effective im- the Fred and Laura Ruth Bidwell led to the resignation.) based family truck stop empire. Foundation opened Transformer ■ It was Mr. Banner who spoke for mediately.” It did not specify a rea- Nov. 12: The museum cancels You could say Mr. Haslam has the Browns at a press conference son for his departure, but noted that Station, an arts and exhibition “Exporting Florence: Donatello to had an up-and-down year. space in Ohio City. at City Hall on Nov. 19 in which it he would be “retained as a consul- Michelangelo,” a major international His Browns again have struggled was announced that the city had tant for a period of time in order to What he said loan exhibition that Dr. Franklin had on the field, but off of it they have agreed to kick in $2 million a year insure an orderly transition.” been planning for a fall 2014 opening. ■ thrived. for the next 15 years to help fund The transition was anything but Dr. Franklin in a statement on ■ Nov. 22: Dr. Franklin’s consult- In mid-January, FirstEnergy Oct. 21, the day he resigned: “Over the stadium upgrade. orderly. ing at the museum ends with the ter- Corp. and the Browns agreed to a the past few months, I have con- Mr. Banner also stated the team’s Commenters on stories posted on mination of a non-renewable contract. 17-year, $102 million deal for sta- cluded that it’s time to spend more case before City Council six days lat- Cleveland.com, Clevescene.com and dium naming rights. time on research and writing.” (Mr. er, when the stadium financing plan elsewhere quickly filled in their own doing it right, one person or two In the months that followed, the Franklin to date has not commented came under fire from five members reason for Dr. Franklin’s sudden de- people or a small group of people Browns and Cleveland Mayor Frank publicly about his resignation or the of council in the hours before it was parture — an affair he had with a can’t affect a world-class organiza- Jackson agreed to fund the nine-fig- circumstances surrounding it.) approved by a 13-5 margin. museum employee who had com- tion.” ure upgrade to the 15-year-old See HASLAM Page 14 mitted suicide in the spring. Scene What others are saying soon posted a story about the mat- ■ ter, and by Oct. 23, R. Steven Kestner, R. Steven Kestner, board a Cleveland lawyer and chairman of chairman, Cleveland Museum of the museum board, confirmed to Art, in a Nov. 13 Plain Dealer in- The Plain Dealer that it was an affair terview: “I don’t think you can that led to Dr. Franklin’s resignation have someone in charge of your (Mr. Kestner later clarified that it was organization that you can’t trust.” ■ lies about the affair that led to the Mike Benz, an executive in res- resignation.) idence in development for Cuya- The unseemly episode contin- hoga Community College who has ued a pattern of sudden depar- been involved for decades in Cleve- tures in the career of Dr. Franklin. land’s nonprofit community: “At In mid-2008, Dr. Franklin was the end of the day, world-class insti- dismissed as deputy director and tutions and organizations usually chief curator of the National have world-class leaders, both vol- Gallery of Canada after museum unteers and staff, and frankly you lawyers concluded he improperly can have an interruption. If you’re MetroHealth Select offers self-funded employers an innovative, health network option with: TIMELINE Francona ] Quality healthcare continued from PAGE 12 ■ April 8: Mr. Francona amuses The Indians will face more ad- reporters before the Indians’ home ]Expert physicians versity in 2014 after the free-agent opener against the New York Yan- departures of starting pitcher Scott kees by telling them he got lost ]Significant savings Kazmir and key relief pitcher Joe “three times” during a two-block Smith, along with the likely exit of walk from his downtown apartment ]17 convenient locations starting pitcher Ubaldo Jimenez. to Progressive Field. Cleveland has “You don’t know how you’re go- “the nicest people I’ve ever met,” ]Wellness services ing to do,” Mr. Francona said. Mr. Francona says. “There are no guarantees. We just ■ Sept. 29: The Indians clinch wanted a chance. Once you start their first postseason berth since playing well, you gain confidence, 2007 with a 5-1 win in the regular- and that’s what happened last season finale at Minnesota. The year. Now we need to use it to our Tribe is the first team to win its final advantage.” 10 regular-season contests since the 1971 Baltimore Orioles closed What he said with 11 straight victories. ■ ■ In a Dec. 10 interview with Oct. 2: The Indians fall to Tam- Crain’s Cleveland Business: “Last pa Bay in the American League wild- year was one of the most reward- card game, ending their season. ■ ing years I’ve ever been a part of. Nov. 12: Mr. Francona is The fun part was every day work- named the American League Manag- ing with Chris (Antonetti, the Indi- er of the Year, receiving 16 of 30 ans’ general manager) and his guys first-place votes. He edges friend and the coaches. I landed in a spot and Red Sox manager John Farrell, where I was really comfortable. I a former Indians player and execu- Contact MetroHealth today at 216-778-7362, knew I was taking the job for the tive, in the voting. right reasons.” or email [email protected] ■ In the same interview, on his ness on Dec. 5: “It’s interesting. You love for baseball: “It’s all I’ve ever take a guy you’ve known for 15 Visit metrohealth.org/select for more information. done and all I’ll ever do. I get excit- years and knew he would impart ed to go to work every day. What a positive energy and would form blessing that is. I would do this job good relationships with our players. for a lot less than what they’re pay- Those were givens. What maybe ing me. Chris knows that.” Chris (Antonetti) and I didn’t real- ize was how competitive he is, how What others are saying prepared he is and how he was able ■ Indians president Mark to strike a balance between urgency Shapiro, to Crain’s Cleveland Busi- and moving on to the next day.” 20131216-NEWS--14-NAT-CCI-CL_-- 12/12/2013 3:47 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS 2013NEWSMAKERS DECEMBER 16 - 22, 2013

“It’s been fun to just watch her TIMELINE ANDREA HOGBEN continue to grow,” Mr. Egger said. FitzGerald and Jackson Northeast Ohio Plain Dealer Publishing is ■ April 4: The Plain Dealer an- Media Group owned by Advance Publications nounced the creation of the North- continued from PAGE 11 What Mayor Jackson said Inc., which has been making simi- east Ohio Media Group, naming An- The council passed a budget ■ Oct. 7 meeting with the lar cuts at the papers it owns drea Hogben president and unveiling larger than he had proposed and By RACHEL ABBEY McCAFFERTY Crain’s editorial board: “I firmly across the country as it pushes the plans to reduce home delivery to members have been raising ques- [email protected] believe that if you’re put in a posi- publications toward a focus on on- three days a week. tions about the new hotel planned tion of making a decision and your line media instead of print. The ■ July 31: The Plain Dealer Pub- for the Mall adjacent to the new his summer, the size of the focus of what is right for where you Plain Dealer fared a bit better than lishing Co. officially let go editorial Convention Center complex. staff of Cleveland’s daily are and who you’re serving, then some Advance papers, which only staff at the Sun Newspapers and Mr. Jackson, not surprisingly, newspaper was drastically nine out of 10 times that public of- print a few days a week, if at all. The Plain Dealer. The job cuts at was successful in his bid for a reduced ficial will make the right decision.” Tand its cus- The official plan for The Plain The Plain Dealer, coupled with volun- third, and probably last, term as tomers lost regu- Dealer was announced in April, tary resignations, added up to about the city’s mayor. But he spent long What others are saying about lar home deliv- causing concern and criticism from one-third of the newsroom. hours in 2013 fighting fires in sev- the mayor readers and advertisers alike. ■ Aug. 5: The scaled-back home eral city departments. ery as the ■ The company made some con- delivery of The Plain Dealer began. In June, Mayor Jackson an- Cuyahoga County Executive company moved FitzGerald, June 5, in a comment toward a focus cessions in the months that fol- Customers can still receive the pa- nounced disciplinary action for 11 lowed, expanding home delivery per at home four days a week, police sergeants and supervisors for to a Crain’s reporter: “One thing on digital media. the mayor and I have in common Since then, plans from three days to four, rather than the originally planned their roles in the police chase Nov. adding Saturday after hearing three, and individual copies of the 29, 2012, that ended in the fatal is we’re direct, we’re honest with Andrea Hogben has been operat- each other and we agree on the ing for the most part behind the pushback from auto dealers, a big paper are available at retail loca- shooting of two fleeing suspects. source of advertising, Ms. Hogben tions seven days a week. Dozens more officers still face disci- general direction of things.” scenes in her first months as presi- ■ told Crain’s in July. plinary charges in the fatal chase. Mayoral opponent Ken Lanci, dent of The Plain Dealer Publish- Sept. 24, in comments to Crain’s: ing Co.’s new digital arm, the “The response was loud and He also reorganized the city’s wa- clear, so we adjusted the strategy,” What she said ter department, hiring a new public “He has failed miserably on every- Northeast Ohio Media Group. thing. He makes the same state- she wrote at that time. ■ Recent email to Crain’s: utilities director in March in the face The Northeast Ohio Media ments about schools, safety and The media organization’s “The focus of the Northeast Ohio of problems untangling customer Group is in charge of the opera- jobs. And he’s done nothing.” tions for Cleveland.com and the unionized editorial workers still Media Group is to do great jour- billing problems. In part because of Sun News. The company also over- are employed by Plain Dealer Pub- nalism, do great work for our the billing problems, Westlake was What Mr. FitzGerald said sees multimedia ad sales and mar- lishing, while the nonunionized business partners, and do great mulling a plan to cut its ties with ■ Oct. 8 ribbon-cutting for the keting for The Plain Dealer, Cleve- editorial employees are under the work in the community. In that Cleveland’s water service and start Global Center: “We’re turning the land.com and the Sun News, oversight of Ms. Hogben’s group. respect, nothing has changed. buying water for its residents from page and starting a new chapter in which consists of 11 community Employees in both companies Our core competencies are pro- the Avon Lake system. That set off a Cleveland history. This will be a papers, and its staff contributes took a hit this summer as The Plain viding quality news and informa- Cleveland plan to charge Westlake catalyst economic and community editorial content for all three. Dealer laid off about 45 members of tion to Northeast Ohio and con- property owners for the cost of the improvement.” Before taking the reins of the its editorial staff, and Sun Newspa- necting our local businesses with suburb’s uncoupling, which trig- Northeast Ohio Media Group, Ms. pers let go about 20 employees, consumers. But certainly a lot gered a lawsuit by Westlake to block What others are saying about Hogben was The Plain Dealer’s se- Cleveland.com reported at the end has changed in how we accom- the separation charges. Mr. FitzGerald of July. When combined with resig- Then, Mayor Jackson was embar- nior vice president of sales and plish those things.” ■ marketing, a position in which she nations that means about one- rassed after he hired a new fire chief U.S. Rep. Marcia Fudge, Nov. was not in charge of editorial con- third of The Plain Dealer’s news- in January to clean up a problem 29, in endorsing Mr. FitzGerald in tent. She has been with the com- room left this summer. What others are saying with payroll recordkeeping that saw his race for governor: “Ed has firefighters illegally swapping shifts shown forward-looking leadership pany for almost 20 years, mostly Anup Kumar, an assistant pro- ■ Terry Egger, chairman, The with other firefighters. that puts a premium on equal op- working in advertising, marketing fessor of communications at Plain Dealer Publishing Co.: “The But it turned out that the new portunity and investing in our chil- and operations. Cleveland State University and a job is not bigger than her.” chief, Daryl McGinnis, soon had to dren, and I’m happy to endorse Terry Egger, chairman of Plain board member at the Society of ■ Marianne Crosley, presi- Dealer Publishing, didn’t sound Professional Journalists and Eye be reprimanded for mistreating a him for governor.” dent and CEO, Cleveland Lead- colleague and then, in August, it ■ Chris Schrimpf, Ohio Repub- concerned about the additional on Ohio, said that in a business ership Center (Ms. Hogben was responsibility. Ms. Hogben’s be- sense, the transition to more digi- was discovered that he had failed lican Party spokesman, in a state- in the 2012 Leadership Cleve- to keep up with his continuing ed- ment Dec. 10, following state Sen. coming more active in the com- tal media has been a smooth one. land class): “I expect her to be munity, he said, and she knows But the cuts in staff are cause for ucation requirements. Mr. McGin- Eric Kearney’s announcement highly responsible in how she the market and the customer base, concern, he said, noting what he nis was relieved of duty and retired that he would not be Mr. FitzGer- disseminates the news … (and) having spent her entire career says is decreased and less in-depth before the end of August. ald’s running mate: “We have willing to make course correc- here. She has an extremely broad coverage. Two weeks after his successful learned a lot about FitzGerald and tions along the way to make sure skill set, he said, and she’s focused “I’m a little bit concerned about re-election, Mayor Jackson an- his priorities throughout this en- she’s traveling the right path.” on success. the journalism,” he said. nounced that the city would com- tire episode. His lack of judgment mit $2 million a year for the next and honesty will haunt him for the 15 years to help cover the cost of remainder of this campaign. If new scoreboards and other facets anyone should leave this race, it’s of the Cleveland Browns upgrade FitzGerald who is clearly not pre- of FirstEnergy Stadium. pared for statewide office.”

needs our leadership, it’s right Haslam now.” continued from PAGE 13 What others are saying Construction is expected to ■ Joe Banner, Browns CEO, to begin shortly after the 2013 season the media on July 24, the day be- ends on Dec. 29. fore the start of the team’s training camp: “Jimmy is here and incredi- What he said bly supportive and a huge asset to ■ To reporters on April 19, one us. I think he’s made it clear and day after federal authorities re- I’ve tried to make it clear without leased an affidavit that linked him any ambiguity at all that he’s not to the corporate fraud scheme: going to sell the team. But I under- “Candidly, I haven’t done any- stand why until that actually hap- thing wrong, No. 1. And No. 2, if pens and this thing plays itself out there’s ever a time the company that it’s a legitimate question.”

TIMELINE ■ Feb. 11: Less than six months reports that the Browns have selected after hiring former PepsiCo president Los Angeles-based architect Gensler John Compton to run Pilot Flying J, to “design a major renovation” to Mr. Haslam announces he is return- FirstEnergy Stadium. The Browns con- Defining Cleveland’s skyline ing to the role of CEO. firm the report, and two weeks later, ■ April 15: Agents from the FBI detail their vast fan experience and Thank you, Commonwealth REIT, for your commitment to the and IRS raid Pilot’s headquarters in stadium improvement initiatives. Knoxville, Tenn. ■ Nov. 25: A federal judge in city of Cleveland and your ongoing confidence in Jones Lang LaSalle ■ May 29: Two Pilot employees Arkansas approves an $84.9 million at North Point Tower. — regional sales director Arnold settlement involving 5,500 trucking Ralenkotter and regional accounts companies that were cheated out of representative Ashley Smith Judd — promised rebates by Pilot. A few jll.com/cleveland plead guilty to federal charges of hours later, Cleveland City Council For a copy of our Cleveland Skyline Review, email [email protected]. conspiracy to commit mail fraud. signs off on the $120 million stadium They are the first of seven employ- financing agreement that was ham- Leasing – Sales – Management – Office – Industrial ees to enter guilty pleas to date. mered out by the Browns and Cleve- ■ July 15: Sports Business Daily land Mayor Frank Jackson. 20131216-NEWS--15-NAT-CCI-CL_-- 12/12/2013 3:50 PM Page 1

CRAIN’S CLEVELAND BUSINESS MAKES CONNECTIONS CONGRATULATIONS TO OUR 2013 PROGRAM ALUMNI

- Akron Surface Technologies, Inc. - SNS Nano Fiber Technology, LLC - CODONICS Inc. - Nottingham Spirk/CardioInsight - Cleveland HeartLab - quasar energy group - NASA Glenn Research Center/Ohio Aerospace Institute

- Jane Alexander, The Cleveland Museum of Art - Mark Danczak, Cohen & Co. - Miguel Zubizarreta, Hyland Software Inc. - Terri Rini Barber, Southwest General - Ester Potash, Olympic Steel Inc. - Don Shadrake, The Reserves Network - George Mehok, Safeguard Properties

- Mary Didonato, Medical Office of Dr. Sandra Hazra - Dr. Michael Lederman, UH Case Medical Center - Cynthia Moore-Hardy, Lake Health - Catherine Koppelman, UH Case Medical Center - Daniel Storey, The Village at Marymount - Kevin Goodman, Leukemia & Lymphoma Society - Lee E. Elmore, North Coast Health Ministry - Dr. Philip Tomsik, North Coast Health Ministry - Dr. Scott Sedlacek, The Eye Place - Pamela Hetrick, UH MacDonald Women’s Hospital - Dr. Wael Barsoum, Cleveland Clinic - Gary Mahoney, The Visiting Nurse Association of Ohio - Barbara Ruhlman, University Hospitals - Meghann Featherstun, UH Accountable Care Organization - Bob Juzenas, Hospice of the Western Reserve - Janine E. Janosky, Austen BioInnovation Instutite in Akron - Dr. Goutham Narla, UH Case Medical Center

- Independence Excavating Inc. - Noble Davis Consulting Inc. - Oswald Companies - Geauga County - Medical Mutual of Ohio

- Ingrid Angel, El Barrio - Marcia Fudge, U.S. Representative, Congressional Black Caucus - Colleen Arthur, Lockheed Martin Akron - Marcie Goodman, Cleveland International Film Festival - Rebecca Bagley, NorTech - Sharon Sobol Jordan, The Centers for Families and Children - Jacqueline Forestall, Alego Health - SueAnn Naso, Staffing Solutions - Bethany Pugh, The PFM Group - Susan V. Juris, University Hospitals Ahuja Medical Center - Jan Roller, Davis & Young - Jeanette Preston, Smithers Quality Assessments - Joy Roller, Global Cleveland - Denise San Antonio Zeman, Saint Luke’s Foundation - Sharon Toerek, Licata & Toerek - Diana Richards, Vacuum Systems International Inc.

- Debra Lyons, Westfield Group - Nicolette Kynkor, FedEx Custom Critical - Sam Maniar, Jo-Ann Fabric and Craft Stores - Carla Fitzpatrick, The Pattie Group - Kate Lawrence, MetroHealth System - Jeanette Saunders, Cleveland Airport System - Diane Giorgi, Reminger Co. LPA - Shana Zollar, Dwellworks - Tom Maxwell, Fifth Third Bank - Susie Barragate, Vocational Guidance Services

- Terry Bichsel, FirstMerit Corp. - Dianne Brehm, United Way of Greater Lorain County - Mark Belgya, The J.M. Smucker Co. - Susan Carlson, ASMGi - Julie McGraw, National Interstate - Richard Marabito, Olympic Steel - Loree Connors, Vitamix Corp. - Wade Steen, Cuyahoga County - Michael Stanek, Hunt Imaging LLC - Marlene Tehi, Evolution Capital Partners

- Frederick Stueber, LIncoln Electric - Douglas Kordel, Proforma - Nadine Ezzie, Broadvox - Kim Bixenstine, University Hospitals - Geri Presti, Forest City Enterprises - Marilyn Tobocman, Ohio Attorney General’s Office

- Christopher A. Bayham, AssuraMed - Will Lazzaro, Dakota Software - Lynlee Altman, Pinnacle Construction and Devlopment Group - Anne Bitong, Akron Marathon - Jonathan Levoy, Alego Health - Bridget Meehan Brennan, United States Attorney’s Office - Matt Brakey, Brakey Energy - Shannon I. Lyons, LaunchHouse Northern District of Ohio - Tim Brokaw, Brokaw Inc. - Cary Majors, Steris Corp. - Michael Foran, Market Garden Brewery, Nano Brew, Bar Cento, - Tessa Burg, SparkBase Inc. - Drew Martin, PNC Bier Markt, Speakeasy - Dan Burkons, Marcus & Millichap - Brian Muskoff, IBM - Troy Gerspacher, Gerspacher Real Estate Group - Ken Burns, TinyCircuits - Scott Orr, Gilbane Building Co. - Julie Maurer, Echogen Power Systems, SilverLine Consulting - Dan Charney, Direct Recruiters Inc. - Laura Passerallo, Fifth Third Bank - Marty McGann, Greater Cleveland Partnership - J. Brandon Davis, URS Corp. - Rico Pietro, Cresco Real Estate - Jeff Pacini, Greater Cleveland Sports Commission - Jacob Duritsky, Team NEO - Kim Wilson, Slate Rock Safety LLC - Stella Paparizos Dilik, The Salvation Army of Greater Cleveland - Rob Heiser, Segmint Inc. - David Sawicki, Cleveland Construction Inc. - Tony Rospert, Thompson Hine LLP, Cornucopia Inc. - Chris Salata, Fairmount Properties - Jay Masurekar, KeyBanc Capital Markets - Andrew Samtoy, Civic Commons ideastream - Marybeth Shamrock, KPMG LLP - Sarah Forrer, Main Street Cupcakes - Fattar Thomas, Delaware North SportService - Ryan White, Price for Profit - Victor Ruiz, Esperanza Inc. - Keith Williams, Good Karma Broadcasting, ESPN Cleveland

Denotes a 2013 Lifetime Achievement Award Recipient DON’T MISS YOUR CHANCE TO CONNECT IN 2014 CRAINSCLEVELAND.COM/EVENTS 20131216-NEWS--16-NAT-CCI-CL_-- 12/12/2013 2:32 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS 2013NEWSMAKERS DECEMBER 16 - 22, 2013

“to cover up and distract from his LAWRENCE unsatisfactory performance.” TIMELINE IVAN SCHWARZ TIMELINE The back-and-forth between ■ Oct. 23: Raymond Ku, a Case Greater Cleveland Film ■ March 5: Media outlets report MITCHELL Messrs. Ku and Mitchell and the uni- Western Reserve law school profes- Cleveland lured the movie “Draft Day” versity has made headlines in multi- Commission Case Western Reserve sor and former associate dean, files away from Buffalo, with help from the ple media outlets, including the legal a lawsuit in Cuyahoga County Com- By CHUCK SODER Ohio Motion Picture Tax Credit. As a University site, Above the Law. It remains to be mon Pleas Court, alleging that the [email protected] result, the movie will focus on the seen what impact, if any, the mael- By MICHELLE PARK LAZETTE dean and the university retaliated Browns instead of the Bills. strom has on the recruitment of stu- [email protected] against him after he reported to vari- ocal historians may look ■ May 31: The city of Cleveland dents at a time when applications ous university officials that Mr. back and say Northeast closes the West Shoreway for “Cap- are on the decline. Mitchell potentially had sexually ha- he headline of the June 20, Ohio’s movie industry tain America: The Winter Soldier.” Many say the matters at hand will rassed women. The same day, the 2011, Crain’s Cleveland didn’t really get started People on the West Side start com- Business story announced: prove to be a short-term distraction university responds, stating, in part: Luntil 2013. plaining about their commutes. “He’s for the law school. But it’s also clear “This situation is categorically not an By far, 2013 ■ June 15: The West Shoreway Tbringing order.” in online comments that there are instance of retaliation.” has been the reopens. It was the news concerns for its reputation. ■ Nov. 6: Mr. Mitchell announces biggest year for ■ Nov. 8: Online rumors suggest that many at “Let’s see how the annual he is taking a temporary leave of ab- movies in the that filming of a “Ghostbusters” se- Case Western Re- fundraisers explain this to already sence as the university conducts an area since the serve University pissed off law school alums [sic],” independent review related to the al- Greater Cleve- quel could come to Cleveland. Mr. School of Law one commenter wrote, responding legations of Mr. Ku’s lawsuit. land Film Com- Schwarz says he cannot comment. had welcomed. to a Nov. 6 Cleveland Scene story ■ Nov. 14: Case Western Re- mission was founded in 1998. Since After 2½ years about Mr. Mitchell’s leave of ab- serve names Jessica Berg and May, the region has hosted shoots There are downsides. For the during which leadership was in a sence. So much for Case Western’s Michael Scharf — two people it de- “back to back to back,” said com- “Captain America” sequel, the city state of transition, the school had a reputation, another lamented. scribes as “renowned scholars” — mission president Ivan Schwarz. shut down the West Shoreway for new dean, Lawrence E. Mitchell, That reputation, though, is a to lead the university’s law school There are two reasons: two weeks, causing traffic jams and who said he was determined to stay good one, asserted John Carey, while Mr. Mitchell is away. ■ The state of Ohio in 2012 vot- bickering. Mr. Schwarz said it was awhile. An expected seven to 10 chancellor of the Ohio Board of ■ Nov. 27: Cuyahoga County ed to raise the cap on the Ohio worth it, but even Chris Evans, who years, in his words. Regents, which oversees colleges Judge Peter J. Corrigan denies a Motion Picture Tax Credit to $20 plays “Captain America,” apologized It’s another 2½ years later, and and universities in Ohio. motion Mr. Mitchell’s attorneys filed million per year from $10 million. on Twitter for “screwing up” traffic. Mr. Mitchell is not presently at the “Case Western in general is a on Nov. 7 to strike “certain immater- The cap had put a serious crimp in Then there’s the tax credit itself. It helm of the law school. He has tak- very highly respected university, ial, impertinent and scandalous alle- the state’s still-developing movie brings $1.20 into Ohio for every tax en a temporary leave of absence and they’re very important to the gations and materials” from Mr. Ku’s industry: Producers wanting to dollar spent, according to a March after he was sued by Raymond Ku, state,” he said. “The law school is complaints. The same court record shoot in Ohio sucked up all $10 2012 Cleveland State University a professor at the school. important because of the gradu- also notes, “Parties indicated that million in the first 15 days of fiscal study paid for by the film commis- Mr. Ku’s Oct. 23 lawsuit alleges ates it produces. no further media releases will be year 2012, which started in July sion. But the credit doesn’t pay for that Mr. Mitchell and the university “No one can avoid being sued necessary.” 2011, Mr. Schwarz said. itself in tax revenue: The study said ■ retaliated against him for reporting completely,” Mr. Carey added. Northeast Ohio started to win 27 films shot over a three-year peri- potential sexual harassment of “You have to handle yourself in a reach, and developed and imple- repeat business from movie makers. od received $28.3 million in credits women by the dean. His com- professional way and manage mented an innovative new curricu- For instance, “Captain America: The but generated just $5.9 million in plaints present some scandalous around it.” lum. The momentum is just begin- Winter Soldier” — the biggest, most new local and state taxes. expensive movie shot in the region The benefits to Northeast Ohio allegations, among them that the What he said ning. I look forward to continuing dean joked to CWRU faculty mem- our work together.” this past year — might not have will increase, however, if the re- ■ Nov. 6, email to law school fac- come to Cleveland if the city hadn’t gion can build a sustainable film bers that a CWRU graduate student What others are saying “wasn’t good for anything but ulty, students and staff: “I am con- already gotten its foot in the door in industry that employs lots of local 2011 when it hosted “The Avengers,” keeping the bed warm,” and that fident that this review will be done ■ John Carey, chancellor, Ohio residents, Mr. Schwarz said. another movie made by Marvel Stu- Mr. Mitchell propositioned a stu- expeditiously and that this review, Board of Regents: “As long as the dios, Mr. Schwarz said. What he said dent for a “threesome.” again, will affirm that neither I nor university is forthcoming with in- The same phenomenon could’ve ■ On the film commission’s Through his attorneys, Mr. the university have done anything formation about the controversy helped the region attract a few other early stage plan to start a media Mitchell has asserted that Mr. Ku’s wrong or improper. I am also con- and presents it in a credible way, I productions shot locally in 2013. technology campus in Northeast “irrelevant and salacious allega- fident that it will put this behind us. don’t think it has any long-term Two executives who worked on Ohio: “I want to make people see tions” are an outlet for the profes- I intend to take full advantage of the impact. It would be a distraction “Draft Day,” a football movie Cleveland as a center of excellence sor’s disappointment about vying legal process to seek justice. We but I don’t think it means that the starring Kevin Costner and Jennifer for global filmmaking.” for, and losing, a deanship posi- have dramatically improved admis- students aren’t going to get the ed- sions efforts, broadened our global ucation that they need.” Garner, had worked on other movies What others are saying tion that went to Mr. Mitchell and shot in town since the film tax credit went into effect in the state’s 2010 ■ Carrie Carpenter, vice chair, fiscal year. Plus, the producer of Greater Cleveland Film Commis- “Miss Meadows,” a Katie Holmes sion: “He has worked very closely comedy that started shooting in with local government, especially Cleveland this past August, is in the city hall, to make this a very film- process of shooting a horror movie friendly environment.” called “Fear Clinic” in Medina. ■ June 17, Plain Dealer editori- Mr. Schwarz played a large role in al: “Our long regional nightmare is getting the region to this point. He over. The West Shoreway is open replaced film commission founder again. … The ‘Captain America’ Chris Carmody in 2007 and spent crew is still in the area, bringing Peer-Reviewed. much of the next few years pushing creative disruption to other lives. the state to pass the tax credit. He’s But at least it gives Clevelanders got lots of contacts, having spent something new and interesting to Rated. Recognized. more than 25 years in the business. gripe about.” Porter Wright salutes all attorneys selected by their colleagues for inclusion in The Best Lawyers in America©, including seven of our Cleveland-based attorneys.

Michael A. Ellis Leo M. Spellacy, Jr. Donald J. Fisher Tracey L. Turnbull Phillip E. Langer William R. Weir Hugh E. McKay

The Best Lawyers in America© 2014. Copyright 2013 by Woodward/White, Inc., Aiken, SC We earn our stripes. porterwright.com

Cincinnati | Cleveland | Columbus | Dayton | Naples | Washington, D.C. 20131216-NEWS--17-NAT-CCI-CL_-- 12/13/2013 10:43 AM Page 1

DECEMBER 16 - 22, 2013 CRAIN’S CLEVELAND BUSINESS 17

INSIDE 19, 21: A LOOK AT THREE PROLIFIC LOCAL INVENTORS PATENT POWER Creating ways to make an impact Nottingham Spirk says 70-20-10 rule can help companies develop innovations

By CHUCK SODER [email protected]

Struggling to come up with the next big thing? Maybe you need a STRONG IDEAS few pointers from Nottingham Spirk. The Cleveland-based product design company has nearly 1,000 U.S. and international patents covering all sorts of consumer START HERE products. Among them: The pop- ular Spinbrush electric tooth- brush, the Swiffer SweeperVac And they don’t necessarily come from and the Twist & Pour paint con- tainer used by Sherwin-Williams. big corporations, as small businesses Co-founder John Nottingham himself is listed as lead inventor dominate Crain’s Patent Power Index on more than 90 U.S. patents. So here are some tips from him and obert Yeggy is thorough. The Medina man searched through his son, Bill, who is a director in 2,000 patents before he and fellow scientist Vito Altavilla filed the company’s new business de- their own patent to protect VARY velopment and design manage- Petrochem’s first chemical compound, ment areas. Rwhich separates oil from sand and other materials. See IMPACT Page 19 Dr. Yeggy printed the other patents out and ini- tialed all the pages, which ended up filling both the trunk and the backseat of a car. He often wrote com- ments on them to make sure his patent attorneys knew why the compound he and Mr. Altavilla creat- ON THE WEB ed was different from the compounds described in In reporter Chuck Soder’s Tech Yeggy the other patents. Talk podcast, Bill and John Thus, it makes sense that their INSIDE: Patent Power Index. Page 18 Nottingham of Nottingham Spirk tiny, Brooklyn-based company is discuss what companies need to do ranked third on the Crain’s Cleveland Business Patent Power Index. to create the next big thing The index is meant to showcase local companies that produce high- — before someone else does. quality patents. It relies on the Ocean Tomo Rating System, which ana- Listen at: lyzes more than 50 factors to determine whether any given patent is like- www.crainscleveland.com/ ly to be renewed and commercialized. For instance, renewal rates tend section/AUDIO to be higher for patents containing more references to older patents and more claims, which describe the aspects of an invention that supposed- ly make it unique. Thus, those patents score higher. See IDEAS Page 18

STORY BY CHUCK SODER [email protected] | Twitter: @ChuckSoder

STEVE BENNETT

This illustration shows an image of an actual United States patent. 20131216-NEWS--18-NAT-CCI-CL_-- 12/13/2013 10:43 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS PATENT POWER DECEMBER 16 - 22, 2013

THE PATENT Ideas: Scores help indicate different strategies POWER INDEX The following Northeast Ohio compa- continued from PAGE 17 nies produce high-quality patents — at The nine patents VARY least according to the Ocean Tomo Rat- Petrochem received from 2010 ing System. The formula scores patents through 2012 apparently are quite based on more than 50 factors de- good: They earned a quality score signed to predict whether a patent will of 158.4 on the rating system, be renewed and commercialized. To be which was developed by Ocean included, a company had to receive at Tomo LLC, an intellectual proper- least three patents from 2010 through ty services firm in Chicago. 2012. A score of 100 represents a All companies on the Patent patent of average quality. The number Power Index received at least three of patents issued are from 2010-2012. patents from 2010 through 2012, Average patent score Number but the index otherwise ignores of patents the number of patents that com- x-Responsive Innovations, Akron 3 panies hold — we rank Ohio com- panies by that standard in the list 173.3 on page 20. That list is led by big companies, but only one major NOx II Ltd., Stow 8 corporation, ATM maker Diebold Inc., cracked the Patent Power top 167.1 10. The Patent Power Index is dom- VARY Petrochem LLC, Brooklyn 9 inated by small businesses. For in- 158.4 stance, Responsive Innovations LLC — which serves as the hard- ware division of a sister company, Diebold Inc., North Canton 118 Turning Technologies in 154.0 Youngstown, a provider of audi- ence response technology — re- ceived just three patents from 2010 Akron Polymer Systems, Akron 4 to 2012. But those patents earned MCKINLEY WILEY 144.1 a combined score of 173.3. Robert Yeggy, right, searched through 2,000 patents before he and fellow scientist Vito Altavilla filed their own patent By comparison, Rockwell Au- to protect VARY Petrochem’s first chemical compound. tomation’s local offices received RSB Spine LLC, Cleveland 3 with an innovative process, you 427 patents from 2010 to 2012, “If your technology is going to be 143.9 more than any other business in might be able to protect the chem- obsolete in a year, do you really want ical by keeping the process behind Northeast Ohio, according to the to get a patent?” list on page 20. But the manufac- closed doors, he said. Alpha Security Products Inc., 3 turing technology company’s – Craig Nard, intellectual property attorney and Trade secrets have their bene- North Canton fits. They can last as long as the in- quality score is only in the middle director of the Center for Law, Technology and the 143.1 of the pack: It hovered close to 100, Arts at Case Western Reserve University vention is kept a secret — the the average score for all industries, recipe for Coca-Cola is a common example — and the inventor does- in all three years. “If your technology is going to Rockwell for patent infringement, y-Athersys Inc., Cleveland 7 n’t need to go to through the trou- The gap in quality scores be- be obsolete in a year, do you really the Milwaukee-based company ble and expense of securing a 140.9 tween big and small businesses want to get a patent?” Mr. Nard could go through its arsenal of patent. shows one way they approach said. patents and file a lawsuit of its The median cost to prepare and Enpress LLC of Eastlake 4 patent strategy differently. Small On the other hand, that 20-year own. Then nobody wins. file a basic patent is $6,500, a price companies don’t have the money monopoly is crucial for many “Hence, the two companies 140.5 that goes up to $10,000 for a more to patent whatever they want, so medical device and drug compa- aren’t going to sue each other,” he complex patent, according to a they aim to make the most of the nies, given how much time and said. 2013 survey by the American Intel- Orbital Research Inc. of Cleveland 16 few they do file, according to Jack money they spend developing It’s no accident that Rockwell lectual Property Law Association. Malackowski, CEO of Ocean their products and winning ap- receives so many patents. 140.3 The median cost to defend a Tomo. proval from federal regulators. The producer of manufacturing patent in court is $700,000 for cas- “They can only afford to keep Patents are especially important automation technology — with es with less than $1 million at risk, Diebold Self-Service Systems 175 the few crown jewels,” Mr. for new medical technology com- offices in Mayfield Heights, a median figure that rises to $5.5 division, North Canton Malackowski said. panies, Mr. Nard said. They’ll of- Twinsburg and Warrensville million for cases with more than VARY Petrochem’s first patent ten need patents if they want to Heights — gives cash awards to 139.9 $25 million at stake, according to met that criteria. Dr. Yeggy worked raise money from investors or be inventors when it files for a patent the survey. so hard to secure it because the acquired by a larger business, he on one of their inventions. Inven- Still, Brian Kolkowski errs on the Freedom Health LLC, Aurora 6 company’s entire business was go- said. Plus, those startups that take tors receive another bonus when side of filing patents. He’s execu- ing to be based around that chem- a single product to market on their patents are granted. Then they’re 139.8 tive vice president and general ical compound. And the effort paid own need to do everything they recognized at a banquet where counsel for several companies off — they got the patent without can to protect it, whereas big com- the CEO hands them their founded by entrepreneur Bob Promerus LLC, Brecksville 18 much trouble. panies with tons of products, such patents, said Mr. Hall, who also is Schmidt, including Orbital Re- “That was a big day in our lives,” as medical device giant Medtronic a distinguished engineering fel- 138.5 search Inc., No. 10 on the Patent he said. Inc., “can absorb more risk in low at Rockwell and is named on some ways,” Mr. Nard said. more than 90 patents (read more Power Index, and Cleveland Med- Ohio Aerospace Institute, 7 Should we, or shouldn’t we? Even so, big companies natural- about him on page 21). ical Devices, No. 18. Companies that prosecute Brook Park Some industry sectors ranked ly file for way more patents than “It’s elevated to a very high lev- someone for stealing a trade secret higher on the Patent Power Index small ones. Consumer products gi- el,” he said of the patenting 133.1 won’t get far if they don’t take rea- than others. For instance, the top ant Procter & Gamble of Cincin- process. “We look for them, we en- nati, the third-largest business in courage them and we reward you sonable steps to keep the secret 20 spots included four medical Arisdyne Systems Inc., Cleveland 5 technology developers, but no Ohio by sales, received 1,076 for them.” under wraps, Mr. Kolkowski said. software company shows up until patents from 2010 to 2012. That’s But Rockwell doesn’t patent That means hiding inventions 129.3 No. 22, a spot occupied by Cardi- twice as many as any other busi- everything, Mr. Hall said. The from many of your own employees ness in the state. company will file for a patent only and requiring the rest to sign non- nalCommerce Corp. The Mentor The remainder of the top 30 if the invention is novel, if it could disclosure agreements, which can company makes software for se- OrthHelix Surgical Designs Inc., Armed to the teeth be reverse engineered by a com- be a pain if your employees are as curing online purchases. Medina, 128.5 (14 patents issued); Big companies use patents dif- petitor and if it could have a signif- curious as those at Orbital Re- Those two sectors approach Avery Dennison Corp., Mentor, 125.3 ferently than their smaller coun- icant financial impact on the busi- search and CleveMed. patents differently, according to (3); Cleveland Medical Devices Inc., terparts. For example, Rockwell is ness, Mr. Hall said. “All the scientists and engineers Craig Nard, an intellectual proper- Cleveland, 124.9 (8); Ohio Gratings Inc., one of many large corporations He equated inventions to rocks want to know what the others are ty attorney who is director of the Canton, 124.7 (6); Woodpeckers Inc., that use a “mutually assured de- in a stream. working on,” he said. Center for Law, Technology and North Royalton, 123.7 (7); Service Pro struction” strategy to defend “You want to patent the boul- Regardless of how it’s done, pro- the Arts at Case Western Reserve Monitoring, LLC, Milan, 123.6 (5); ders and not the pebbles,” he said. tecting intellectual property University. themselves from patent infringe- Beckett Gas Inc., North Ridgeville, should be a top priority, especially Software products come and go, ment lawsuits, according to Ken 123.2 (6); CardinalCommerce Corp., Keeping secrets instead in an age where a company’s ideas so it doesn’t always make sense to Hall, vice president of advanced Mentor, 123.0 (11); Kent Displays Inc., file for a patent, which offers 20 technology at the company. What about those inventions and knowledge often are worth Kent, 122.3 (12); Mac Trailer years of protection, Mr. Nard said. Rockwell, he said, probably has that can’t be reverse engineered? more than its physical assets, Mr. Manufacturing Inc., Alliance, 132.3 (11) For software companies, being developed a few technologies that It’s often smarter to skip the patent Nard said. ■ Source: Ocean Tomo LLC; first to market and creating a violate patents held by competi- and protect those inventions as “The more sophisticated com- x-affiliate of Turning Technologies; strong brand is often more impor- tors, but the same is true in re- trade secrets, Mr. Nard said. For panies, they understand it’s a y-patents held by ABT Holding Co. tant, he said. verse. So if a competitor sued instance, if a chemical was created board room issue,” he said. ■ 20131216-NEWS--19-NAT-CCI-CL_-- 12/13/2013 12:47 PM Page 1

DECEMBER 16 - 22, 2013 PATENT POWER CRAIN’S CLEVELAND BUSINESS 19 MASTER INVENTOR Silly concepts can bring good results

When Andrew Bell is stuck on a Mentioning a completely ridicu- tough problem at material technol- lous idea can prompt people to ogy developer Promerus explore new ideas, Dr. Bell LLC, he thinks back to an said. For instance, two episode of “M*A*S*H” in years ago, Promerus was which everybody in the mo- trying to figure out how to bile medical unit is playing isolate a valuable molecule poker. through a chemical reac- They’re all losing to Maj. tion that turned the mole- Charles Emerson Winches- cule into a gas. The prob- ter III — until he steps out lem was, that gas still for a break. While venting Bell contained impurities. their frustration, Hawkeye To purify it with a typical Pierce and the others accidentally distillation tube, they’d need to discover Maj. Winchester’s tell: He build one through the roof — an whistles louder when he’s bluffing. idea that Dr. Bell jokingly suggested. Then they clean him out. Then his colleague offered a better Sometimes if a technical discus- idea: Pack a shorter distillation tube sion moves in the right direction, with metal mesh, which can help the answer to a problem becomes pull impurities out of a gas. It obvious, said Dr. Bell, chief operat- worked, both in the laboratory and ing officer at Promerus. The in a larger pilot plant. Brecksville company, a developer of Ideas that seem silly can break JANET CENTURY polymers for semiconductors and down barriers, Dr. Bell said. Some- Bruce Banks stands next to an atomic oxygen beam system he helped develop at NASA Glenn Research Center. other electronic products, ranked times they work, he said, but if not No. 13 on the Crain’s Patent Power they can inspire ideas that aren’t so panels would be so badly damaged system, singling out Marko Brdar, Index, which rates local companies ludicrous — even if the first person BRUCE BANKS by atomic oxygen floating in low who later spent a few years doing based on the quality of their says, “We shouldn’t be doing that.” Earth orbit that they’d need to be research at NASA Glenn. NASA Glenn patents. (Check out the story that “Then someone goes, ‘I think he’s replaced every year. Some of Mr. Banks’ inventions Research Center starts on page 17 for details on how right, we should try this,’” he said. That technology has flown on work on Earth, too. For instance, he the index was compiled.) — Chuck Soder ack in high school, Bruce Russia’s Mir space station, the In- developed a way to use atomic oxy- Banks tied pogo sticks to ternational Space Station and other gen to restore paintings, which is his legs to see if it would spacecraft, said Mr. Banks, who something NASA Glenn now does help him run faster. spent 22 years as chief of the elec- regularly. Plus, he and Tom Stueber, ON THE WEB Patents mean the world to some companies. BThe experiment proved just one tro-physics branch at NASA Glenn an electrical engineer at NASA Glenn, To others, not so much. Learn more about the strategies thing: His girlfriend Judy, who is and continues to work at the center developed a piece of software that different businesses and industries employ to protect now his wife, is extremely tolerant. as a senior physicist for SAIC, a designed to help people make vari- their intellectual property: Check out reporter Chuck “‘What are you doing?’” he said, Virginia-based NASA contractor. ous business and technical decisions. Soder’s Tech Talk podcast with IP attorney Craig Nard, who imitating her as she stopped in to The ion thruster technology he “That’s been used for some very is director of the Center for Law Technology and the Arts at Case visit. helped develop in the 1970s also important decisions at NASA,” Mr. Western Reserve University. Listen at: “‘Oh, making pogo stick legs,’” he has done a lot of flying. The tech- Banks said, adding that he’s a www.crainscleveland.com/section/AUDIO responded, laughing about the nology has been used to propel at member of the Kiwanis Club of memory. least 33 satellites and two space- Olmsted Falls, which has used the Mr. Banks — who has conducted craft, Deep Space 1 and Dawn. The software to help pick who would get research at NASA Glenn Research latter just visited the asteroid Vesta scholarships. Center since 1966 — admits that and now is headed to Ceres, a dwarf Mr. Banks also is the proud most of his ideas go nowhere. But planet between Mars and Jupiter. inventor of a system he uses to he’s had tons of them over the Mr. Banks, who holds 38 U.S. and remember ideas that come to him years. international patents, got some of his in the middle of the night. It con- Some have been out-of-this- interest in science from his sists of a notepad installed under world successes. For instance, father, who had a large tool collection the headboard of his bed and a pen NASA estimates Mr. Banks’ method in his basement and regularly took with a light on it. of coating solar panels on satellites his son on industrial plant tours. “When you’ve got something has created more than $15 billion in The 71-year-old Mr. Banks also good, you’ve got to preserve it so value for the U.S. government. had great science teachers during you don’t lose it,” he said. Without the glass coating, the his days in the Rocky River school — Chuck Soder

Impact: ‘Mothership’ can be distraction

continued from PAGE 17 means separate budgets and sepa- First, you can’t focus 100% of rate development teams. It’s best if your research and development those teams are in different rooms efforts on your core product lines. or even different buildings, Bill Not- Nottingham Spirk suggests compa- tingham said. nies follow the same rule Google “You have to create this division uses: 70% of your product develop- that’s not going to get distracted or ment efforts should be focused on pulled away by the mothership,” he your core business, 20% should B. Nottingham J. Nottingham said. look at adjacent opportunities and But even then, developing dis- 10% should consider areas that are man Kodak should have focused ruptive technology isn’t easy. “going to disrupt your business,” as 20% of its development efforts on For instance, Barnes & Noble John Nottingham put it. digital products, which would have developed the Nook, one of many If your company doesn’t create been a great example of an adjacent electronic readers disrupting the that new disruptive product, some- opportunity back when print pho- book business. Nook has its own one else will, Mr. Nottingham said. tography ruled the industry. team in Silicon Valley, far from the “If you focus on it (your core As for the other 10%? Maybe the book retailer’s New York headquar- business) 100% and not do the next company could have developed ters. Still, the tablet is struggling to big thing, you’re going to lose the something such as Instagram, Bill complete with Apple’s iPad and 100%,” he said. Nottingham said. Facebook recently Amazon’s Kindle. But Bill Notting- If Eastman Kodak Co. had fol- bought Instagram for about $1 bil- ham doesn’t expect Barnes & Noble lowed the 70-20-10 rule, the com- lion. to end up like its now-defunct rival, pany might not have been hurt so Established companies need to Borders. badly by the rise of digital photog- make a serious commitment to the “I still think Barnes & Noble will raphy, they said. Years ago, East- 10% and the 20%, they said. That succeed if they keep going,” he said. ■ 20131216-NEWS--20-NAT-CCI-CL_-- 12/13/2013 2:41 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS PATENT POWER DECEMBER 16 - 22, 2013 OHIO COMPANY PATENTS RANKED BY TOTAL PATENTS ISSUED 2010-2012

Total Total Total Total Total Total Company/City Total patents patents patents patents Company/City Total patents patents patents patents Rank Website 2010-2012 2012 2011 2010 Rank Website 2010-2012 2012 2011 2010 Devicor Medical Products Inc. Procter & Gamble Co./Cincinnati 21 /Cincinnati 44 12 21 11 1 www.pg.com 1,076 401 335 340 www.devicormedical.com University of Cincinnati Ethicon Endo-Surgery Inc./Cincinnati 21 /Cincinnati 44 11 17 16 2 www.ethicon.com 516 181 150 185 www.uc.edu University of Akron Rockwell Automation Technologies Inc./Mayfield 23 /Akron 42 21 11 10 3 Heights 427 121 150 156 www.uakron.edu www.rockwellautomation.com Liebert Corp. 24 /Columbus 40 12 20 8 Eaton www.emersonnetworkpower.com 4 /Cleveland 385 136 123 126 www.eaton.com Imaging Systems Technology Inc. 25 /Toledo 37 18 9 10 PPG Industries Ohio Inc. www.teamist.com 5 /Cleveland 237 74 77 86 www.ppg.com Bendix Commercial Vehicle Systems LLC 26 /Elyria 35 14 7 14 Goodyear Tire & Rubber Co. www.bendix.com 6 /Akron 205 59 74 72 www.goodyear.com Gojo Industries Inc. 26 /Akron 35 24 8 3 Diebold Self-Service Systems, division of www.gojo.com 7 Diebold Inc./North Canton 175 56 68 51 Invacare Corp./Elyria www.diebold.com 28 www.invacare.com 33 18 13 2 Teradata US Inc. 8 /Dayton 163 48 48 67 Kent State University/Kent www.teradata.com 28 www.kent.edu 33 12 8 13 Parker Hannifin Corp. 9 /Cleveland 138 54 36 48 Ferro Corp./Mayfield Heights www.parker.com 30 www.ferro.com 31 11 7 13 Nordson Corp. 10 /Westlake 126 52 34 40 Nanotek Instruments Inc./Dayton www.nordson.com 30 http://nanotekinstruments.com 31 15 6 10 Diebold Inc. 11 /North Canton 118 35 41 42 PolyOne Corp./Avon Lake www.diebold.com 32 www.polyone.com 30 8 10 12 Case Western Reserve University 12 /Cleveland 105 47 33 25 Lubrizol Advanced Materials Inc./Cleveland www.case.edu 33 www.lubrizol.com 29 13 14 2 Cleveland Clinic Foundation 13 /Cleveland 90 45 44 1 Velocys Inc./Plain City http://my.clevelandclinic.org 33 www.velocys.com 29 11 12 6 Electrolux Home Products Inc. 14 /Cleveland 78 18 41 19 American Greetings Corp./Cleveland www.electroluxappliances.com 35 www.americangreetings.com 28 18 7 3 Lubrizol Corp. 15 /Wickliffe 74 23 20 31 Veyance Technologies Inc./Fairlawn www.lubrizol.com 35 www.goodyearep.com 28 8 9 11 Emerson Climate Technologies Inc. 16 /Sidney 71 18 33 20 Timken Co./Canton www.emersonclimate.com 37 www.timken.com 27 9 6 12 Owens Corning Intellectual Capital LLC 17 /Toledo 70 29 24 17 GrafTech International Holdings Inc./Lakewood www.owenscorning.com 38 www.graftechaet.com 26 2 12 12 Ohio State University Research Ohio University/Athens 18 Foundation/Columbus 67 21 27 19 38 www.ohio.edu 26 8 11 7 http://orc.osu.edu University of Dayton/Dayton Ohio State University/Columbus 38 www.udayton.edu 26 8 7 11 19 http://orc.osu.edu 52 23 15 14 RESEARCHED BY American Sterilizer Co./Mentor Source: Ocean Tomo LLC. 20 www.steris.com 49 10 22 17 Deborah W. Hillyer

Prolific Cleveland Clinic innovator passes away

By TIMOTHY MAGAW [email protected]

Dr. Roy Greenberg — one of the Cleveland Clinic's most prolific in- novators — died Dec. 7 at his home on Lake Erie after a battle with can- cer. He was 49. Dr. Greenberg, who was born in Ithaca, N.Y., had been with the health system since 1999. He was known as a pioneer in the field of treating complex aortic disease and held more than 50 patents.

ON THE WEB Story from: www.crainscleveland.com Dr. Roy Greenberg Clinic cardiologist who researched imaging of arterial blockages. Dr. Greenberg helped create a 3D Dr. Greenberg earned his bache- navigation technology that lowers lor's degree at Cornell University and exposure to radiation. He also devel- his medical degree from the Univer- oped a modeling technology for 3D sity of Cincinnati. He trained in gen- printing that can create custom en- eral and vascular surgery at the Uni- dovascular grafts. His work has been versity of Rochester Medical Center, credited with a dramatic reduction where he met his wife, Alicia Fan- in mortality for endovascular aortic ning. After they completed their repair patients over the last decade. training, they both joined the Clinic. In 2012, the Clinic awarded Dr. Dr. Greenberg has two children: Greenberg its Sones Innovation Zachary, 11, and Lucas, 10. Award, which recognizes an indi- A memorial service will be held vidual's efforts in advancing med- Jan. 11, 2014 at 1:00 p.m. at the In- ical innovation. The award is terContinental Hotel on Carnegie named for Dr. F. Mason Sones, a Avenue. ■ 20131216-NEWS--21-NAT-CCI-CL_-- 12/13/2013 12:48 PM Page 1

DECEMBER 16 - 22, 2013 PATENT POWER CRAIN’S CLEVELAND BUSINESS 21 MASTER INVENTORS PAUL SANDSTROM Goodyear Tire & Rubber Co. oodyear Tire & Rubber Co. should be glad Paul Sandstrom didn’t like his electrical engineering classes in college. GIf he hadn’t switched his major to chem- istry, there would be a serious hole in the Akron tire maker’s patent portfolio. That is, unless they managed to find some- one else who would go on to be the lead inventor on more than 280 U.S. patents. In addition to those patents — which make Mr. Sandstrom the most prolific inventor in Northeast Ohio over the past 40 years — he has his name on a total of nearly 1,400 U.S. and international patents that Goodyear has filed since he was hired in 1967. “My first thought after I use it for a while is, ‘You know, they could make it better.’ ” – Paul Sandstrom, polymer chemist, Goodyear Tire & Rubber Co., on how he wants to tinker with products he uses

Several of those patents cover the DuraWall technology Mr. Sandstrom helped develop to strengthen the sidewall of Goodyear’s Wran- gler tires more than 10 years ago. The chemi- cal compound helps prevent rocks from pen- etrating the sidewall. If a crack does form, the compound prevents it from spreading, Mr. Sandstrom said. More recently, he helped develop the tread MCKINLEY WILEY Paul Sandstrom of Goodyear Tire & Rubber Co. is the most prolific inventor in Northeast Ohio over the past 40 years. on Goodyear’s Assurance Fuel Max tires, which won a Best of What’s New award from cal engineering major at Youngstown State he spends four to six hours a week mentoring which he admits isn’t good for his sleep Popular Science in 2009. University, the classes were too abstract, so new polymer chemists and compounders at schedule. And he involuntarily finds himself “You name it, I probably worked on it,” he he switched to chemistry. He lived at home Goodyear. thinking about how to improve products he said. and worked 40 hours a week during college to So why has he stayed with the company for uses at his home in Akron, where he lives with Growing up in Boardman, Mr. Sandstrom pay his tuition. 46 years? his wife, Marcia. owned multiple chemistry sets that he used Since then, the 70-year-old Mr. Sandstrom He enjoys his work. Mr. Sandstrom always “My first thought after I use it for a while is, to conduct experiments in his parents’ base- has earned his master’s degree in polymer is thinking about how to develop new tech- ‘You know, they could make it better,’ ” he ment. Though he started college as an electri- science from the University of Akron. Today, nologies, even in the middle of the night, said with a laugh. — Chuck Soder

KEN HALL MOST PROLIFIC INVENTORS These are Northeast Ohio’s most prolific inventors from the past 40 years, Rockwell Automation ranked by the number of U.S. patents that list them as the lead inventor: here are about 85 boxes Patents Companies stacked in the corner of Paul H. Sandstrom 280 Goodyear Tire & Rubber Co. Ken Hall’s office. Each con- Adel F. Halasa 224 Goodyear Tire & Rubber Co. tains one of his patents, Lawson G. Wideman 156 Goodyear Tire & Rubber Co. Tengraved in metal on a wooden Wen-Liang Hsu 139 Goodyear Tire & Rubber Co. plaque. John M. Davenport 115 GE Lighting, Energy Focus Inc. Clearly, he can’t hang them all Louis R. Nerone 113 GE Lighting up. Robert K. Grasselli 112 Standard Oil Co. Mr. Hall has spent 20 years help- David F. Lawson 93 Bridgestone Corp. ing Rockwell Automation develop John R. Nottingham 91 Nottingham Spirk technology used to automate man- Dane K. Parker 87 Goodyear Tire & Rubber Co. ufacturing processes. Many of his John T. Lai 82 Goodrich Corp., Lubrizol Corp., Noveon IP Holdings inventions are related to the inte- Richard L. Hansler 77 GE Lighting, Federal Sign, American Sterilizer Corp. grated circuits used to control Frederick Lederman 77 General Motors Corp. machinery. It would be tough to Craig M. Saunders 68 Royal Appliance Manufacturing, Nottingham Spirk find a Rockwell integrated circuit Russell W. Koch 67 Bridgestone Corp. that he didn’t help create. Aubert Y. Coran 66 Advanced Elastomer Systems, “I’ve been doing this for a long Flexsys America, Monsanto Co. time,” he said. Wilfrid G. Shaw 66 Standard Oil Co. Mr. Hall is vice president of archi- Richard M. Lange 62 Lubrizol Corp., Noveon IP Holdings tecture in Rockwell’s advanced Richard O. Ratzel 60 Ranpak Corp. technology group, which is tasked Raman Patel 59 Advanced Elastomer Systems with making big breakthroughs, even if their work doesn’t pay off for backup controller the updates it After graduating with a degree in five to 10 years. would need, should the backup electrical engineering from Cleve- A patent Mr. Hall secured in 2008 need to take over. The new system land State University in 1974, Mr. should pay off soon. He led the is faster and cheaper than the cus- Hall spent a few years at Keithley development of a technology that tom communication systems Rock- Instruments Inc. in Solon before should improve the backup system well had been using, he said. joining Allen-Bradley LLC, which is Rockwell is incorporating into its The 62-year-old Mr. Hall said he now part of Rockwell, in 1981. In next generation of redundant indus- was “always building something” the mid-1980s, however, he spent a trial controllers, which are used to while growing up. He was an few years at other companies and run oil rigs and other machines that apprentice of sorts to his father, even ended up using some of the can’t afford to stop running. who had a workshop and worked automation products he designed Mr. Hall and colleague Ronald frequently on their home in at Allen-Bradley, “which was a Schultz repurposed a memory Willoughby Hills. In his youth, Mr. humbling experience,” he said. management unit that normally is Hall also launched his own amateur He’s also humble about all the used to help a computer move infor- radio station, building his own patents in his office. He mentioned mation from its working memory transmitter and antennas. He still that he didn’t earn them alone. (RAM) onto a hard disk and back has ham radio gear at his home in “There are very few patents I JANET CENTURY again. Instead, they used the unit to Hudson, where he lives with his have where I am the only inventor,” Ken Hall has a hand in developing almost all of Rockwell’s integrated circuits. help an industrial controller feed a wife, Constance. he said. — Chuck Soder 20131216-NEWS--22-NAT-CCI-CL_-- 12/13/2013 12:50 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 16 - 22, 2013

FlashStarts business accelerator invests in startup Retailers: Business should RegulatoryBinder is the ON THE WEB Story from The company will use the in- second startup to receive an www.crainscleveland.com vestment to hire more employ- investment from the Flash- ees experienced in customer pick up during ‘crunch time’ Starts business accelerator in downtown Cleve- support, quality management, sales, software land. development and clinical research. continued from PAGE 1 WHAT THEY’RE SAYING ABOUT The company has raised $425,000 from a Founder Rick Arlow was studying for de- In recent years, shoppers have had about THE HOLIDAY SHOPPING SEASON total of nine investors, with FlashStarts con- grees as both an M.D. and a Ph.D but decided a week between Thanksgiving and the start tributing the largest amount, according to infor- instead “to start RegulatoryBinder after witness- of December to reboot their wallets, Mr. “The calendar really has mation from a FlashStarts news release and a ing hospitals waste valuable resources manag- Presser said. This year, the calendar turned document filed with the U.S. Securities and Ex- ing rooms of paper documents and shut down to December before the end of the Black Fri- wreaked havoc on the change Commission. studies due to paper-based deviations,” the re- day weekend. It happens about every seven shoppers’ psyche.” RegulatoryBinder has developed software lease stated. years, but it never fails to throw people out – Steve Presser, owner, Big Fun used to organize documents related to clinical FlashStarts previously made a follow-on in- of step, he said. trials. The U.S. Food and Drug Administration vestment in Crowdentials, a company that aims “The calendar really has wreaked havoc has told the company it meets the agency’s to help connect other startups with investors on the shoppers’ psyche,” Mr. Presser said. “People are just taking their standards for electronic documentation. and vice versa. — Chuck Soder Candra Squire, owner of Salty Not Sweet time.” in Cleveland’s Ohio City neighborhood, said sales for the homemade contemporary craft – Candra Squire, owner, Salty Not Sweet and home goods store have been up for 2013 versus 2012, which makes the drop in sales “It’s Christmas. We call it so far in December all the more surprising. Sales this month are down about 22% from crunch time.” this point in December 2012, she said. Last – Andy Selesnik, marketing director, year, Black Friday seemed to kick off the SouthPark Mall REAL ESTATE nonstop shopping, but that has not been the case in 2013. “I have a good feeling about Phone: (216) 522-1383 Fax: (216) 694-4264 “People are just taking their time,” Ms. Squire said. this holiday season.” And it’s not just independent shops seeing Contact: Denise Donaldson E-mail: [email protected] – Suzanne DeGaetano, co-owner a so-so start to the season. and manager, Mac’s Backs-Books Andy Selesnik, marketing director for on Coventry REAL ESTATE List your auction, Industrial, SouthPark Mall in Strongsville, said the mall SERVICES had a very good Black Friday in terms of traf- luxury, commercial or fic through the door — up 20% over 2012 — staff members at Big Fun, Visible Voice FORT MYERS, FLORIDA but traffic has been pretty flat for the start of Books in Cleveland and home furnishings REAL ESTATE retail space Here! December compared with last year. and personal accessories store City Buddha You could be golfing or Mr. Selesknik said he expects people soon in Cleveland Heights all mentioned online boating right now. Crain’s Cleveland Business’ classifieds will help you will panic a bit and start their shopping in shopping as a priority for 2014. Jeff Hathy, Realtor fill that space. earnest. He said the stores at SouthPark are Larry Collins, owner of City Buddha, said Jones & Co. Realty preparing for the final weeks of the season by there have been “tumbleweeds in the 239-322-6970 or [email protected] Contact Denise Donaldson at 216.522-1383 adding stock, since Black Friday sales streets” this season, adding that it has been cleaned them out. a disappointing year for his store. Besides in- “It’s Christmas. We call it crunch time,” he creasing his store’s presence online in 2014, said. he plans to put a stronger focus on his Great expectations, sort of wholesale business to other shop owners. Big Fun’s Mr. Presser expects customers Across the country, more people set out to to turn out in force during the final weeks of shop during Thanksgiving weekend than the season and said the retailer will see im- they did last year — an estimated 141 mil- proved sales in 2013. Even so, he’s looking CLASSIFIED lion unique shoppers in 2013 compared with for ways to diversify his business and expand 139 million in 2012 — but customers spent a his online offerings. little less on average, according to the Na- “If you’re not flexible, you’re going to re- BUSINESS SERVICES tional Retail Federation. ally suffer in a down economy,” he said. On average, customers spent or planned C. W. JENNINGS INDUSTRIAL EXCHANGE to spend $407.02 from that Thursday- Activity report Global Expansion Consulting FLYNN through-Sunday period, or $16.53 less than Still, it hasn’t been a disappointing early Construction • Acquisitions ENVIRONMENTAL during the like period in 2012. Aggressive season for everyone. For instance, Details discounts and pre-holiday shopping could Exporting • Financing For Assessments Accessory Gallery at Eton Chagrin Boulevard have contributed to the decline in spending, in Woodmere is seeing a great start to the (800) 690-9409 the association said. But for all of November (855) 707-1944 www.flynnenvironmental.com holidays, said manager Bridget Farkas. and December, the federation projects sales The boutiques at Eton have a loyal cus- will increase 3.9% from 2012. BUSINESS OPPOPRTUNITY BUSINESS SERVICE tomer base, one that is a bit more mature The Columbus-based Ohio Council of Re- and well-off than a typical mall, Ms. Farkas OWNERS! tail Merchants also expects a slight increase said. She couldn’t share specific details on Long established Banquet & Event Center/Catering Submit your business card to in holiday spending this year, predicting an sales numbers, but said traffic consistently Business For Sale promote your service.. increase of 3.5% in sales across the state has been steady or up. Part of that increased Newly renovated leased facility includes fully equipped kitchen, furniture, fix- compared with 2012, said president and traffic could be spillover from the recently tures, etc. Guaranteed future bookings. D-5 liquor license negotiable. Excellent To find out more, contact CEO Gordon Gough. The council represents added Apple and Tiffany & Co.’s stores at location near I-480 & Ridge Rd. Buyer must sign confidentiality agreement. Denise Donaldson at about 5,400 retailers. Eton, Ms. Farkas said. Call for details, 216-390-2082. Prudential Select Properties. 216.522.1383 An increase in salaries and wages and a re- There also hasn’t been any slowdown at covering housing market in Ohio, along with the downtown location of CLE Clothing Co., declining fuel prices and increasing stock said merchandiser Jillian Doskocil. The store prices, gave the council reason for optimism, opened in November 2011 and has been get- Crain’s Executive Recruiter Mr. Gough said. ting busier every year. Ms. Doskocil said she Onward online thinks part of the improvement is because more people know about the shop, and the Suzanne DeGaetano, co-owner and man- rest is due to a busier downtown. Many cus- To place your ager at Mac’s Backs-Books on Coventry in tomers discover the shop while doing some- Cleveland Heights, expects sales at her store to thing else nearby. Crain’s Cleveland pick up at the end of the season. Sales for Black For concerned business owners, activity Friday weekend were up compared with 2012, around their stores might be a key. Chris Business Ms. DeGaetano said, but the first dozen days Sorensen, owner of Crafty Goodness in Lake- of December at the seller of new and used wood, said she saw sales start to pick up af- Stark State College is the largest institution of higher learning in Executive books were slower for a variety of reasons, in- ter the city’s Light Up Lakewood event Dec. Stark County, and is the fourth largest of Ohio’s 23 public two-year cluding the unseasonably cold weather. 7. Ms. DeGaetano of Mac’s Backs-Books ear- colleges in the University System of Ohio. Recruiter ad Ms. DeGaetano noted that people also ly last week hoped Coventry’s holiday festi- We’re looking for a talented, enthusiastic individual to join us in were bombarded with Cyber Monday deals val, scheduled for Saturday, Dec. 14, would the following position: this year and responded to those offers. kick off the crunch season. Mac’s Backs offers online shopping, but it • Executive Director of Workforce and Economic Development Call Overall, Ms. DeGaetano is optimistic sales didn’t do anything special for Cyber Mon- will increase in the final few weeks of 2013, To learn more about the specific description and required Denise Donaldson day. However, the store could take advan- providing a fitting end to a year in which qualifications for this position and/or to apply, please visit: tage of that hype in the future, Ms. DeGae- sales are up an estimated 5% to 10% from www.starkstate.edu/employment. at 216-522-1383 tano said. levels of 2012. EOE She isn’t alone in considering a bigger on- “I have a good feeling about this holiday line push in the future. Management and season,” she said. ■ 20131216-NEWS--23-NAT-CCI-CL_-- 12/13/2013 5:01 PM Page 1

DECEMBER 16 - 22, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Longer ‘Fishing Without Nets’ Christmas” from director Joe Swanberg, re- a new pub. DECEMBER 9 - 15 united with Anna Kendrick, one of the stars A 120-seat restaurant and bar is in the could land Sundance award of this year’s acclaimed “Drinking Buddies.” works in one-time office space in the hotel The big story: State Sen. Eric Kearney will ■ The holidays came a little early for video — Scott Suttell that has its own storefront entrance on Huron, not be the running mate next year for Democratic and event production company Think Me- according to Scott Schmelzer, general man- gubernatorial candidate Ed FitzGerald. Sen. dia Studios of Cleveland, which has earned ager of the hotel for Marshall Hotels & A patented technique Resorts Inc. of Salisbury, Md. The operation Kearney announced his withdrawal from the a spot for its film “Fishing Without Nets” in will open Jan. 20 and will offer breakfast, ticket amid ongoing media coverage of the tax the main U.S. Dramatic Competition of the for pilfering patent art lunch and dinner seven days a week, he debts of the senator and his wife. “It’s undeni- Sundance Film Festival, which will be held ■I have committed intellectual property theft. said. It will stay open as late as 2 a.m. able that this has come to be a distraction from Jan. 16-26, 2014, in Park City, Utah. Check out the illustration on page 17, the Mr. Schmelzer would not disclose the “Fishing Without Nets,” directed by Cut- beginning of this week’s Patent Power a discussion of the vital issues facing Ohio, and budget for converting the space to a pub, section. You’ll notice that the background the choice voters must make in this election,” ter Hodierne, is a story of pirates in Somalia but described it as “substantial.” Designs by Sen. Kearney said. told from the perspective of a struggling, resembles the cover of an actual patent. mbi | k2m Architecture Inc. of Cleveland call young Somali fisherman. It’s cast largely Well, we didn’t need to go online and pay for installing movable window walls at the Keeping it local: Avtron Aersopace Inc., a de- with Somali refugees found on the streets of for a stock photo of a patent — who Huron entrance; concrete floors and weath- signer and producer of aircraft component test Mombasa, Kenya, as well as former wants to do that? Instead, I told my ered brick walls will give it an industrial technology that is based in Independence, hostages and the pirates themselves. wife, Laura, to take one from her dad, design. — Stan Bullard changed hands between private equity firms Production began last Richard “Dick” West, who has with Cleveland ties. Morgenthaler Private Equity, fall and wrapped in acquired a handful of patents over based in Cleveland and Boston, sold Avtron January. the years. He runs West Roofing Sys- Hiram College gets state Aerospace to CapitalWorks, a private equity firm A short version tems and West Development Group, green to go greener both of which are based in LaGrange. in Cleveland. Avtron Aerospace was one of three of “Fishing With- ■ The Ohio Development Services Agency The one my wife “stole” is a patent for companies owned by Avtron Holdings LLC, out Nets” previ- has loaned Hiram College about $5 million which Morgenthaler acquired in November 2007. ously won Sundance’s Grand Jury Prize. what is essentially a roofing robot. It rolls to assist the private college in Portage County The other two companies were sold previously. That version’s success led Think Media Stu- back and forth across a flat roof, spraying with its sustainability efforts. dios to make the full-length film with Vice, a foam along the way. West Roofing uses the The low-interest, 15-year loan is expected Changing the channel: A little more than a youth-focused media company. robots for its own purposes, and it sells to help the school cut its yearly carbon dioxide year after its launch, 87.7 Cleveland Sound will “Proud as we are of our work for local and them as well. You can have one, too. Just emissions by about 5,000 metric tons and swap its alternative rock format for a Hispanic national companies, its gratifying to be part make that $17,000 check out to me — I’ll cut its energy costs almost in half. The college one. On Jan. 1, the primarily Spanish language of a project that has the potential to reach a take care of it. — Chuck Soder plans to improve its lighting and air systems, station, La Mega 87.7 Latino and Proud, will go worldwide audience,” said Brian Glazen, install new windows and add new low-flow live, said Tom Wilson, whose Murray Hill owner and producer for Think Media Stu- What’s the hubbub? sinks and shower heads that will allow Broadcasting is partnering with Cincinnati- dios, in a statement about the film’s inclu- Hiram to reduce and track water usage. based TSJ Media to introduce the format to this sion at Sundance. A pub at the Radisson The loan is through the state’s Energy market. Cleveland Sound will remain at its cur- “Fishing Without Nets” will be up against ■ Limited-service hotels that eschew food Loan Fund, which offers low-interest rent location in The Agora, but it probably won’t some heavy hitters. Among them: “God’s and beverage services are a big part of the financing to businesses, manufacturers, retain its current on-air talent, Mr. Wilson said. Pocket,” directed by John Slattery of “Mad lodging business, but the operator of the public entities and nonprofits for energy- Men” and starring Academy Award-winner Radisson Cleveland Gateway, 651 Huron efficiency and advanced energy projects. End of the line: Chris Warren, the city of Philip Seymour Hoffman; and “Happy Road, is preparing to go the other way with — Timothy Magaw Cleveland’s chief of regional development, is retiring. Mr. Warren oversaw the city’s community devel- WHAT’S NEW BEST OF THE BLOGS opment, economic develop- ment and city planning Excerpts from recent blog entries on They go together … departments, will serve for CrainsCleveland.com. six months as a consultant to ■ This may not qualify as groundbreaking the city on lakefront develop- Money to burn news, but it appears ment — an effort he has Clevelanders are very fond ■ Cleveland is a hotbed for anti-Obamacare of beer and pizza. spearheaded during his six- Warren and-a-half years with the ad money. A study from Infogroup administration of Mayor Frank Jackson. Mr. War- Kantar Media produced an interactive Targeting Solutions of Om- ren, 63, was the first person to hold the position. map that shows which markets are attract- aha found that the cities ing the most dollars in advertising that takes with the most pizza restau- Healthy start: Cleveland State University aim at the Affordable Care Act and the per- rants per capita also tend to broke ground on a $45 million health sciences formance of Healthcare.gov. have the greatest number of building that’s expected to open in June 2015. COMPANY: Osborn, Cleveland The map measures the amount of money bars. The 100,000-square-foot building at Euclid Av- spent on Obamacare attack ads and the Cleveland, for instance, enue and East 22nd Street will house CSU pro- percentage of uninsured people in each was No. 4 in pizza establish- grams offered by the School of Nursing and the PRODUCT: New line of ceramic media market. Slate.com noted that “al- ments, with 6.7 per 10,000 School of Health Sciences, as well as the Cleve- filament ATB brushes most all of the money has been funneled people. It was No. 3 in bars, land cohort of Northeast Ohio Medical Univer- into markets where a high proportion — at at 11.5 per 10,000 people. sity programs within NEOMED’s College of Osborn says its new line of brushes is least 15% — of the population is unin- The top pizza city: Orlando, at 10.3 per Medicine, College of Pharmacy and College of designed for use on alloys employed in sured.” 10,000 residents. The top bar city was Pitts- Graduate Studies. It will be the home of the aerospace and high-technology industries Topping the list was Charlotte, with burgh, at 11.8 per 10,000 people. $710,860 in spending to date on ads against NEOMED-CSU Partnership for Urban Health. where precision deburring is required. Obamacare. In that market, 23% of citizens NEOMED will enter a 25-year lease to occupy The company, a supplier of surface treat- are uninsured. Looking good about 20% of the building. ment products and finishing tools for indus- trial and commercial applications such as Cleveland was No. 2, with $703,140 in ad ■ Beauty probably isn’t high on the list of spending. About 17% of this area’s residents Ready to Rolls: Look for new Rolls-Royce metal finishing and surface polishing, calls reasons people choose to attend a business are uninsured, according to Kantar Media. cars to roll into North Olmsted as Collection ceramic filament brushes “a proven problem school. But it doesn’t hurt, and a ranking Auto Group owner Bernie Moreno adds to his solver for titanium turbine engine compo- of the “50 most beautiful business schools chain of dealerships. Mr. Moreno said starting nents.” Sticking to their business in the world,” from TopManagement- ATB ceramic brushes “diminish burrs on today, Dec. 16, the Rolls dealership will be ■ CNBC “Mad Money” talker Jim Cramer Degrees.com, gave Case Western Reserve the toughest materials,” the company says. housed with Collection’s Aston Martin show- had some kind words about Cleveland- University’s Weatherhead School of Man- Their design “allows for faster run times, room at 28300 Lorain Road. That location will be based KeyCorp in a recent discussion about agement something to brag about. higher output and precision deburring and its home for the next 12 to 18 months until a the Volcker Rule — the long-planned ban Weatherhead ranked 35th on the list of polishing.” nearby building Mr. Moreno owns is ready for on certain kinds of speculative trading at schools that are “as aesthetically pleasing on the Rolls dealership. The dealership will operate The new line includes master wheels; investment banks. the outside as they are innovative on the in- under the Rolls Royce of Cleveland name. aggressive composite wheels; flexible com- Mr. Kramer said most bank CEOs expect- side,” the website noted. posite wheels; ringlocks; bridled end brush- ed a tough version of the rule. Weatherhead’s Peter B. Lewis Building Heading west: Cleveland law firm Walter | es; and uni-lock quick change tools. He said he would short well-known “brings to mind the titanium-clad Guggen- Haverfield opened the only office it has had in “The new line of ATB ceramic brushes banks still involved in trading that would be heim Museum in Bilbao, Spain, another recent times outside downtown Cleveland; it’s in enable manufacturers to be innovative and banned under the rule. iconic (Frank) Gehry creation,” according to Lorain County, where the firm sees opportuni- competitive,” said Jeff Naymik, marketing “If you’re a bank and you’re still doing the ranking. “In contrast, the building’s in- ties for growing its corporate and school district manager at Osborn, in a news release. this stuff, I’m shorting you” against smaller, terior is cleaner and more minimal than the work. The new location, in the Avon Pointe Osborn, which celebrated its 125th an- regional banks such as KeyCorp, Mr. imposing exterior, and it features some office park in Avon, is staffed with three attor- niversary in 2012, has operations in 15 coun- Cramer said. “Do you think Key does any of small, intimate spaces that encourage stu- neys and is led by Kenneth S. Stumphauzer. tries. The unit of Jason Inc. carries more than this stuff? You know what Key does? They dents to work together and even get to know 10,000 standard products. lend.” each other.” 20131216-NEWS--24-NAT-CCI-CL_-- 12/13/2013 10:47 AM Page 1

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