20111205-NEWS--1-NAT-CCI-CL_-- 12/2/2011 4:37 PM Page 1

$2.00/DECEMBER 5 - 11, 2011

INSIDE In construction, boom and bust Akron General does well in wellness construction trades experiencing a Some find work plentiful on local projects; others look elsewhere boom time along with the cadre of The health system is partnering national and local subcontractors with a nearby developer to replicate its successful health and wellness By STAN BULLARD since 2006, there is more work than unit apartment building to a condo- that employ those workers. Yet centers. PAGE 5 [email protected] the 892 members of Ironworkers minium hotel in San Lorenzo, Calif. other contractors are searching for Local 17 can handle, said Timothy “I’m doing it to keep the guys work, with some hitting the road to ALSO INSIDE: As steel thrusts skyward at con- McCarthy, business of the busy,” vice president Doug Leohr find it. ■ Downtown struction megaprojects in down- union local that serves Northeast said in explaining Pride One’s The push from the megaprojects Cleveland’s town Cleveland such as the Medical Ohio. cross-country stretch. is giving the building business in the Embassy Suites Mart and Convention Center and Meanwhile, headed out of town Welcome to the two sides of Cleveland area a much-needed hotel is in foreclosure. PAGE 4 Ernst & Young Tower, ironworkers for work is Pride One Construction Northeast Ohio’s construction mar- boost, but the picture is incomplete. ■ Electronic recycling is big are coming here for jobs from Los Inc. of Medina, which plans to ket. The state’s October jobs report shows business for Cleveland company. Angeles, Las Vegas and Buffalo. provide construction management Multimillion-dollar projects in regional employment is languishing PAGE 9 That’s because, for the first time services for the conversion of a 12- downtown Cleveland have several See CONSTRUCTION Page 7 Oil, gas reps warn Ohio to TROUBLE IN MLB limit taxes TALENT SEARCH Big bonuses for top young players have been the on industry ammo of choice for small-market baseball teams. Revenue forecast rosy; New rules eliminate that weapon from the arsenal.

future worries drillers By JOEL HAMMOND [email protected] By DAN SHINGLER [email protected] ong removed from the glory days of the mid- and late ’90s, the Ohio’s burgeoning oil and gas in recent years have made building their business should add tons of money farm system the heart of their strategy for to state and local tax coffers in the Lbuilding a successful franchise. coming years. But industry repre- ’s new collective sentatives caution public officials bargaining agreement, though, stands not to squeeze the golden goose too to make the strategy — also ANALYSIS hard with taxes unless the state employed by other small-market wants to risk seeing investment in teams — a lot tougher to pull off. their business go elsewhere. The new deal, introduced before Thanksgiving, “If you do that, you’ll see capital will penalize teams that spend more on draft start to drift away,” said Jerry James, choices than MLB-recommended bonus alloca- president of Artex Oil Co. in Marietta tions that vary based on records from the prior and current president of the Ohio Oil year. They’ll be dinged in the wallet, but most and Gas Association. importantly for the Indians and others, they’ll The association recently analyzed also lose draft picks. how drilling and exploration in the Because small-market teams traditionally Utica shale beds, which lie beneath See INDIANS Page 8 the eastern half of Ohio, will impact the state in taxes. It estimates the industry likely will generate $1.05 billion in additional annual tax rev- WATCH YOUR WALLET enue by 2015. That money would Major League Baseball now will over: 75% tax and a loss of a first- come in the form of commercial penalize teams for spending round pick activity taxes, income taxes and sales over draft bonus allocations, at ■ Between 10.1% and 15%: taxes — paid by companies in related times severely. The details: 100% tax and the loss of first- and industries, too — as well as so-called ■ Up to 5% over the recom- second-round picks “severance taxes” collected specifi- mendation: 75% tax ■ Over 15%: 100% and the loss cally on oil and gas taken from the ■ Between 5.1% and 10% of two first-round picks state. See TAXES Page 20

SPECIAL SECTION 49 6 LEGAL AFFAIRS

NEWSPAPER Take a tour of a Cleveland law firm’s new digs, at Entire contents © 2011

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011

‘WHO TO WATCH’ CORRECTION LEADERS OF THE PACK Only 19 of Ohio’s 88 counties had October unemployment rates below ■ A Nov. 21 Forty Under 40 story had NOMINATIONS 8%, and five of them are in Northeast Ohio. Geauga County had the the wrong high school for Greater Cleve- state’s lowest jobless rate, at 5.4%. There are 21 counties with jobless We’re looking for technology up-and- land Automobile Dealers’ Association rates above 10% and a total of 42 where the rate exceeds the state comers for “Who to Watch: Technolo- president Lou Vitantonio. He attended 700 W. St. Clair Ave., Suite 310, average of 9%. Here’s how all seven counties of Northeast Ohio stack Cleveland, OH 44113-1230 gy,” slated for publication Jan. 16. Walsh Jesuit High School. Also, the up against their counterparts: Phone: (216) 522-1383 If you think you know who will be association has 250 members when Fax: (216) 694-4264 among those leading the Northeast counted as individual dealerships, as County Oct. unemployment Statewide rank www.crainscleveland.com Ohio tech scene of the future, drop an opposed to individual owners who can email to sections editor Amy Ann own more than one dealership. Geauga 5.4% 1 Publisher/editorial director: Stoessel, [email protected], or call Brian D. Tucker ([email protected]) Editor: 216-771-5155. Please send in your Lake 5.9 3 (tied) REGULAR FEATURES Mark Dodosh ([email protected]) suggestions by Friday, Dec. 16. Medina 5.9 3 (tied) Managing editor: There are no hard and fast requirements Classified ...... 22 Scott Suttell ([email protected]) for this section, other than the candi- Editorial ...... 10 Cuyahoga 7.4 11 Sections editor: date needs to exhibit the kind of poten- Amy Ann Stoessel ([email protected]) Portage 7.9 18 tial that makes him or her someone to Going Places ...... 12 Assistant editors: watch in the field of technology. Letters ...... 11-12 Summit 8.1 21 Joel Hammond ([email protected]) Mark your calendars for future sec- List: Largest office Sports tions: “Who to Watch: Finance” (April Lorain 8.5 32 Kathy Carr ([email protected]) 23); “Who to Watch: Health Care” (July leases ...... 19 Marketing and food 16); and “Who to Watch: Law” (Nov. 26). Reporters’ Notebook ...... 23 SOURCE: OHIO DEPARTMENT OF JOB AND FAMILY SERVICES Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected])

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DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Small retailers upbeat after Black Friday Some local outfits report robust spending, but observers skeptical of staying power

By MICHELLE PARK INSIDE: A look at consumers’ [email protected] holiday shopping intentions. Page 21

A busy Thanksgiving shopping are weary of keeping their wallets weekend has many Northeast Ohio shut. retail merchants dreaming of a “I think some people who were greener Christmas, though others not spending … are tired of the are skeptical the sales momentum money diet,” said Bonnie Chernikoff, will last. who owns Bonnie’s Goubaud at Several area businesses and Eton Chagrin Boulevard in Wood- shopping centers say their early mere, where sales on Black Friday sales and traffic trumped those of and the following Saturday were up JANET CENTURY last year and even reached pre- about 6% over last year and up 14% Myra Golden has benefited from OneCommunity’s computer training program and has formed a consulting company that recessionary levels — something over 2009. “They’re just saying, ‘OK, works to help low-income parents receive public money for child care. Ms. Golden still takes a word processing class and some view as a harbinger of a better I’m done.’” an advanced computer class at the Ashbury Senior Computer Community Center in Cleveland. full shopping season. Ms. Chernikoff’s women’s apparel American consumers, they say, See RETAILERS Page 21 THE WEEK IN QUOTES COMPUTER PROGRAM “Our job is to take the “As you see more and structure and find a more of the govern- LOOKS FOR POWER way to win. Owners ment, the corporations, and players create the going green, they are Area nonprofit aims to solicit community support to maintain system, and our job now thinking, ‘Hey, technology training program for low-income residents is to win within the where do we send our system.” computers, our elec- — Mark Shapiro, president, tronics, for recycling?’” By CHUCK SODER to a phone survey conducted by Cleveland Indians. Page One [email protected] — Craig Silverstein, founder, E- the program’s organizers. Scrap Solutions. Page 9 efore the Connect Your Now Connect Your Community aims to win similar support from Community computer “What we’re doing, “Being managing training program runs businesses, school districts and out of federal stimulus nonprofits, according to Bill Calla- the investment we’re partner is a lot easier Bmoney, it would be well served to han, executive director of the pro- making, is not only when everybody’s find partner organizations that gram for Cleveland-based One- good for our law firm making plenty of like the program as much as its Community, which is organizing but the city of Cleve- money. … When money graduates do. computer training programs in land.” gets tight, minor issues Ohio and four other states. Nearly all of the Cleveland-area — Brent D. Ballard, managing become major, and residents who took the training Doing so will go a long way partner, Calfee, Halter & Gris- wold LLP. Page 13 major issues become courses and subsequently got a toward supporting the courses reasonably fast Internet connec- when federal stimulus dollars life-threatening.” out next year, Mr. Callahan said. — Eric Seeger, principal with tion say they would recommend Newtown Square, Pa.-based the program to a friend, according See COMPUTER Page 21 Altman Weil Inc. Page 13 Beachwood eyes key commercial connection

district to the newer Chagrin High- the rezoning through. Chagrin Highlands, lands just to the south, where a new Beachwood had been one of the hospital has opened and Eaton Corp.’s region’s leading beneficiaries of the Commerce Park link world headquarters is going up. decades-long growth of suburban At the same time, however, the office development that began in part of larger strategy city lost a new hotel planned for the 1960s, but has spent nearly a Chagrin Boulevard when develop- year figuring out how to remake it- By JAY MILLER ers on Nov. 23 withdrew a rezoning self in the current slow-growth era. [email protected] bid for land at Chagrin Boulevard The city brought the community’s and Richmond Road. A citizens economic development effort in- Beachwood is marking its re-entry group had objected to putting an house two years ago, ending its into the economic development Aloft hotel and attached restaurants longstanding financial support of a business with a move forward and a onto property currently zoned for business attraction and retention step back. an office building, and Mayor Merle program run by the Beachwood The move forward is a plan to link Gorden didn’t have the support of Chamber of Commerce. But after the aging Commerce Park business Beachwood City Council to push See BEACHWOOD Page 22 20111205-NEWS--4-NAT-CCI-CL_-- 12/2/2011 2:46 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 K&D Group says foreclosure logical route for Embassy hotel

By STAN BULLARD [email protected]

The gains Cleveland hotel opera- tors hope to see once the Medical Mart and Convention Center and Horseshoe Casino Cleveland are up and running downtown won’t come soon enough for the Embassy Suites at Reserve Square, which is the sub- ject of a foreclosure proceeding. Wells Fargo Bank of San Francisco filed suit Nov. 22 in Cuyahoga County Common Pleas Court to foreclose against Hotel at Reserve Square Ltd., a partnership led by K&D Group, after it defaulted on a $9.5 million mortgage the lender handles on the 268-room hotel at 1701 E. 12th St. K&D CEO Doug Price said the foreclosure followed an attempt by The Embassy the apartment owner and developer Suites at Reserve to restructure the loan to a smaller Square in down- figure that cash flow from the hotel town Cleveland is can support. K&D owns the largest the subject of a portfolio of apartments in Northeast foreclosure pro- Ohio with more than 9,000 units. ceeding. “We’re committed to the hotel,” STAN BULLARD Mr. Price said last Wednesday, Nov. 30. “The hotel business has not been not improve enough to change the performing the market as a whole. the best in Cleveland. It’s getting hotel’s outlook. better, but the hotel has not been However, not everyone agrees ‘Everything’s possible’ able to meet its mortgage obliga- with Mr. Price’s assessment. The Mr. Price noted he isn’t alone in tions. Unfortunately, you can’t pick foreclosure news surprised David his hotel woes, as Chicago-based LR up a phone and talk to a lender, and Sangree, president of the Hotel & Development Co.’s Old Arcade and this is the process you have to go Leisure Advisors consultancy in Hyatt Regency also are undergoing through.” Lakewood. foreclosure and drew no bidders at Mr. Price can’t talk to the original “Embassy Suites is doing better a September sheriff’s sale. lender because the loan was sold than some of its competitors,” Mr. More optimistic about the hotel into the mortgage bond market. Sangree said. market’s future than Mr. Price is K&D is among several Northeast Mr. Sangree said the outcome Gary McGauley, general manager of Ohio real estate owners trying for was unexpected as K&D bought the Cleveland Renaissance Hotel, such loan revisions. Embassy Suites at a low price, about who said businesses increasingly K&D decided to try to restructure $5 million in 2005, according to are spending money on meetings; the loan by defaulting on it, rather Cuyahoga County land records. his hotel’s 2012 bookings are well than carry it, Mr. Price said. The However, Mr. Price said K&D ahead of where bookings for 2011 Wells Fargo lawsuit said the lender pumped another $5 million into were at this time last year. has not received monthly loan pay- renovating the property, which pro- Moreover, Mr. McGauley said he ments of nearly $60,000 since Janu- duced the $9.5 million loan. expects Cleveland to regain its place ary. That delinquency triggered the Mr. Sangree said he expects as a stop for statewide conventions default and the foreclosure case now Cleveland’s hotel business to get a that rotate through major Ohio assigned to Judge John O’Donnell. boost from the new convention cities after the new convention cen- Mr. Price said the apartments at center and casino, but he has not ter opens in 2013. The old conven- Reserve Square that K&D owns in a quantified its size. tion center’s obsolescence cost the separate company are full and have Statistics from lodging data city its place in the lineup years ago. never performed better. The hotel’s source STR/HotelNewsNow.com Mr. Price said although K&D performance is improving, but Mr. show the downtown hotel market is wants to retain the Embassy Suites, Price said, but it “doesn’t make sense emerging from the 2008 downturn. it plans to focus on its core apart- to continue to feed it. On a year-to-date basis through ment business and is hunting an- “Business in 2010 was not good, October, the most recent period other downtown property. 2011 was a little better and 2012 will available, occupancy is up this year Judge O’Donnell has scheduled a be a little better,” he said. The hotel to 62% from 60% in last year’s like hearing today, Dec. 5, on a Wells outperforms the downtown and period. However, average daily room Fargo motion to appoint a receiver. regional market, according to Mr. rates dipped almost 1% this year, to Mr. Price said that matters little; What IF your law firm Price, but it is “still under water.” $108.80 from last year’s $109.79. Hilton Hotels Corp. already man- provided Insight for the Both the occupancy and room ages the property. A brighter future? rates remain below the market’s last Meghan O’Dell, a Troy, Mich., at- challenges at hand and Even when the new Medical Mart peaks of 63% and $118.77, respec- torney for Wells Fargo, said its suit Foresight for the issues and Convention Center opens in tively, that were hit in October 2007. speaks for itself. Asked if K&D could on the horizon? 2013 and the casino opens next However, STR data show the down- win a principal reduction, she said, spring, Mr. Price said the market will town Cleveland hotel market is out- “Everything’s possible.” ■

president for CBiz Payroll Services, Small Business Employment Index inches up said the latest index indicated “mild growth in employment, consistent The November Small Business ON THE WEB Story from with our expectations that low Employment Index issued by the www.CrainsCleveland.com. levels of hiring would take place as CBiz Payroll Services unit of CBiz we approach the holiday season.” Inc. showed improvement from the 300 or fewer employees, increased The data show 23% reported a previous month. by 0.35% last month, after posting a decrease in employee headcount Carl J. Grassi Shawn M. Riley The index, which is a barometer for decrease of 1.28% in October. while 24% and 53% maintained their President Cleveland Managing Member hiring trends among companies with Philip Noftsinger, business unit number of employees. McDonald Hopkins LLC 600 Superior Avenue, East, Suite 2100 Cleveland, OH 44114 • 216.348.5400 Volume 32, Number 49 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH www.mcdonaldhopkins.com 44113-1230. Copyright © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824- Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach 9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20111205-NEWS--5-NAT-CCI-CL_-- 12/2/2011 2:42 PM Page 1

DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Akron General planning to replicate health, wellness centers A fit bottom line center in Green, which is expected System will pair with to open early next year. The $32 Akron General’s health and fitness million project will include radiology neighboring developer centers integrate rehab and general and lab services, sports medicine, fitness work in the same setting. physical therapy and the medically By TIMOTHY MAGAW Once patients are done with their based fitness center. Akron General [email protected] rehabilitation work, the hope is contracted with Rendina Cos., a real they’ll stick with the fitness center estate firm in Jupiter, Fla., to develop More companies in recent years and perhaps buy a membership. the health center. have flocked to wellness programs An Akron General spokesman The joint venture sees health as a way of keeping their employee wouldn’t provide specific numbers, systems, higher education institu- health care costs down, but officials but said the Bath Township center, tions and communities as among RENDERING PROVIDED at Akron General Health System with 9,000 paying members, has the potential clients of the wellness What Akron General Health System’s new health center in Green will look like. say they embraced the “wellness” had net profits that have ranged enterprise. Akron General officials concept well before it was en vogue. between 20% and 25% of annual say they’ve already received calls “This whole idea has generated a president of health and wellness. Now, the health system wants revenue over the last six years. Offi- from dozens of interested parties lot of interest across the country “We believe over the next 10 to cash in on its wellness enterprise, cials expect the center in Stow, with nationwide, while others have visited because it addresses a lot needs for years, every health care organiza- as it looks to commercialize its 4,000 members, to perform similarly. Northeast Ohio to tour its existing health systems and communities to tion in the country will have this approach to keeping folks healthy by The health system is building a health and wellness centers to improve their health,” said Dr. type of facility and program,” Dr. embarking on a new joint venture — similar 98,000-square-foot health see what they might be able to build. Doug Ribley, Akron General’s vice Ribley said. ■ dubbed Integrative Health Partners — with a local developer to create sprawling new health and fitness centers across the country. The idea behind Akron General’s foray with Signet Enterprises, a real estate developer based in Akron, is to replicate the success of the health and fitness centers Akron General operates in Bath Township and Stow. Hospital officials say those centers have provided a solid revenue stream since they were built in 1996 and 2007, respectively.

“This whole idea has generated a lot of interest across the country because it addresses a lot of needs.” – Dr. Doug Ribley, vice president of health and wellness, Akron General Health System

“These projects are very capital intensive, but we know there’s a return on investment by keeping people healthy,” said Akron General CEO Vince McCorkle. Mr. McCorkle said the new enter- prise stands as a potential source of revenue for the health system as it faces declining reimbursements from private and government insur- ance payers. However, he couldn’t predict how much revenue the joint venture could produce given that each of the possible projects would vary in size and scope. Signet chairman Tony Manna, whose firm will underwrite and manage the future construction pro- jects, said the idea behind the joint venture is to keep people out of the hospital, which ultimately should drive down health care costs. “It’s clear Akron General is being aggressive and thinking outside of the box,” said Mr. Manna, whose firm has been involved in health care building projects nationwide. Those projects include Summa Health System’s $25 million health center at Lake Medina as well as proton beam cancer therapy centers in California, Georgia and Maryland. COMING UP Final 2011 business breakfast Wednesday Crain’s on Wednesday, Dec. 7, will wrap up its 2011 Ideas at Dawn business breakfast series with a panel discussion on best practices for “Hiring Rock Star Talent.” For more information or to register, visit www.Crains Cleveland.com/breakfast or call Jessica Snyder at (216) 771-5388. 20111205-NEWS--6-NAT-CCI-CL_-- 12/2/2011 3:36 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011

load or requiring them to reengineer Northeast Ohio, opened its eight lo- Brecksville unveiled new product BRIGHT SPOTS their existing bibliographic databases cation last week, at 7735 Market- packaging and an updated logo for and websites.” place Drive in Bainbridge. Messrs. its ProgressBook Suite of student, Bright Spots is a periodic feature in The Akron/Summit bureau pro- Drs. Zeng and Gracy are develop- Kowit and Essreg represented the classroom and district management Crain’s, highlighting positive business motes Summit County as a destina- ing prototype tools “to help libraries landlord on the 3,155-square-foot web solutions used by K-12 public news in Northeast Ohio. To submit tion for business and recreational and museums connect to the unfa- lease. school districts, private schools, information, please e-mail Scott Suttell travel. It also manages the John miliar data and metadata resources Sally Beauty Supply has a 2,000- charters and education service cen- at [email protected]. S. Knight Center and Greystone in the LOD world,” according to Kent square-foot store in the works ters. Hall. State. for the first quarter of 2012 at In 2002, ProgressBook started ■ The Akron/Summit Conven- “In this project, Dr. Zeng and I will Bruns-wick Marketplace on Cen- as a single, tion & Visitors Bureau said it ■ Two faculty members at Kent be aligning metadata terms from ter Road in web-based received six industry awards for State University’s School of Library different and diverse namespaces, Brunswick. grade book various initiatives in and Information Science received which means that we will be analyzing Tori Nook application 2011. a National Leadership Grant semantic relationships among many exclusively used by From the Ohio totaling $219,386 from the federal different metadata schemas to iden- represents a handful Association of Con- Institute of Museum and Library tify areas of overlap and degrees of Sally Beauty of school vention & Visitors Services. similarity,” Dr. Gracy said in a state- Supply districts for Bureaus it received Prof. Marcia Lei Zeng and assis- ment. throughout Northeast Ohio. teachers to move hard-copy grade a first-place Middy tant Prof. Karen Gracy will use the EdisonLearning, a charter books to the web. Since then, Soft- Award for its funds to help improve access ■ Kowit & Passov Real school, will open a new Cleveland ware Answers said ProgressBook has website, www.akron to digital resources Estate Group announced location at 3167 Fulton Road in been expanded through in-house .travel, and two sec- through what is several new deals in Lin’s Omni Square. Amy Doroba software development, product ac- ond-place awards for known as “linked Northeast Ohio. and Jim Wolf represented the land- quisition and with business part- the “Greater Akron open data,” or LOD. Laz Cazuelas Ex- lord on the 7,000-square-foot lease. nerships. ProgressBook now is used Video Tour” and a social “With linked press, a Mexican Comprehensive Pain Manage- by more than 800 school districts. marketing event/campaign called data technologies, takeout restaurant ment Centers bought a 12,800- Paul Chaffee, CEO and chief “Summit Up!” libraries can effi- with four locations square-foot, freestanding office financial officer of Software Answers, The Ohio Travel Association pre- ciently reach a much in North Carolina, building at 1560 Corporate Woods said the repackaging and rebranding sented the Akron/Summit bureau wider range and more Florida and Ohio, will Parkway in Green. initiative “is a direct result of the with a citation of excellence for the diverse data universe, open a fifth location in It will move there in January from continued growth of our company “Greater Akron Video Tour.” and more effectively March at 7205 North Aurora Road 3593 S. Arlington St. in Akron. The and product offering, as well as a Finally, the Ohio Society of Asso- provide services to their users,” Dr. in Bainbridge, in Marketplace at company has seven locations in desire to refresh the look of our ciation Executives awarded the Zeng said in a statement. Four Corners. Brad Kowit and Medina, Portage and Summit coun- products.” Akron/Summit organization a first- “Libraries can enhance their Chuck Essreg represented the ties. Michael Weiss represented the Solon marketing firm Gold- place Achievement Award for existing digital collections and ser- landlord on the 1,079-square-foot buyer. stein Group Communications was “Summit Up!” and a Merit Award vices with linked data technologies lease. hired to develop the new brand for the 2011-2012 Akron/Summit and LOD resources without signifi- Asian Sun Martial Arts, a martial ■ Software Answers Inc. of identity. Visitors Guide. cantly increasing the library’s work- arts school with sites throughout New STEM school in Rootstown appealing to rural population By TIMOTHY MAGAW “There are a lot careers [email protected] in the health care field ... THIS IS MY Would-be physicians and phar- and these (rural) stu- macists won’t be the only students dents are not exposed to inhabiting the Northeast Ohio Med- enough of them.” CONFERENCE ical University’s Rootstown campus next fall. Expect a throng of high – Stephanie Lammlein, director, school freshmen as well. Bio-Med Science Academy The medical school, formerly ROOM would be located during its first known as NEOUCOM, will house the region’s first rural STEM high year on the NEOMED campus. How- As a lawyer, you want order in your life.Cox Business school, Bio-Med Science Academy. ever, the plan is to move the school VoiceManagerSM lets you forward and manage your calls to any The school, sponsored by the Root- to the university’s new wellness and phone and from any internet connection. Call the Cox Business stown Local School District, will place education complex, slated to open team at 1-877-903-7885 or visit us at www.CoxBizLegal.com a heavy emphasis on science, tech- in 2013, as part of a $76 million for more information. nology, engineering, math (STEM) campus upgrade announced earlier and — in this case — medicine. this fall. The school, which will run year- Kathleen Ruff, NEOMED’s vice MY PHONE AND LAPTOP ARE MY ASSISTANTS round, is looking to recruit 60 fresh- president for external affairs and men for its August 2012 opening. special assistant to the president, Most of the students will be from rural said the university saw the STEM communities in Portage County. school as another opportunity to Beyond the first year, the hope is to recruit more students to the med- recruit 100 additional students each ical school and to reach students year, said Stephanie Lammlein, who otherwise wouldn’t receive the director of the new school. specialized approach to education. “There are a lot of careers in the “As we were looking how we can health care field, biosciences and address some of the health work engineering, and these (rural) stu- force shortages, one of the things dents are not exposed to enough of we realized we needed to do was go them,” Ms. Lammlein said. “I want backwards to begin to influence to open their eyes to this world.” kids at a much younger age,” Ms. Officials still are hammering out Ruff said. “This is one of the ways the details of where the school we can do that.” ■

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DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Construction: Contractors find specializing helps draw business continued from PAGE 1 Construction Co. unit of Streets- “Optimism hit bottom in 2010 and has started to Cleveland Building Trades Council, in the construction, mining and boro-based Geis Cos., said his com- said his membership will have a logging category; it was down nearly pany’s focus on heavy-duty indus- come back. There is some optimism, though not strong better holiday this year thanks to 7% in the Cleveland-Elyria-Mentor trial real estate projects is bearing optimism.” the current work. He’s confident Metropolitan Statistical Area, to fresh fruit as resurgent manufacturers – Roger Gingerich, partner-in-charge of the real estate and construction more work is ahead, such as the 31,100 workers this October from buy empty industrial buildings at group, Skoda Minotti planned American Greetings Corp. 33,300 in October 2010. However, bargain prices and retrofit them for headquarters in Westlake, and employment in that category in the their use. other projects in downtown Cleve- Akron MSA nudged into positive “A lot of people are knocking on outside Ohio this year. government-subsidized affordable land spawned by the under-con- territory with a 14% increase to 13,600 our door again, although the market Likewise, Adelbert “Chip” housing for low-income residents. struction convention center and jobs from 11,900 in October 2010. is tough for contractors in general,” Marous, CEO of Marous Brothers However, Mr. Marous said, the casino. Cleveland economist George Mr. Martin said. Construction Co. in Willoughby, devastation in the construction Marous already has one of the Zeller and others find it easy to cite Mr. Martin said Geis did as many said the company added a dozen business means his company does first of the latter project: the $64 the biggest cause of the construction retrofit projects for clients as it did employees to its 124-person core business differently, such as cutting million renovation of the former market’s struggles. higher-profile new construction payroll and kept busy by following checks directly to suppliers to Crowne Plaza hotel across East “We were in this huge recession projects, including work for sister clients to cities such as Washing- protect itself for material costs in Sixth Street from the convention because of the housing bubble company Geis Development, which ton, D.C. Marous also pursued a case subcontractors fail. center. The hotel will become a bursting,” Mr. Zeller said. “Residen- accounts for about 35% of his unit’s diverse workload that ranges from Union leaders are more opti- Westin under its new owners, a tial construction remains miserable.” workload. It also is following clients installing drywall at the Horseshoe mistic than business types. joint venture of Sage Hospitality Construction of single-family out of town; 60% of its work was Casino Cleveland to building Terry Joyce, president of the and Optima Management Co. ■ homes requires more workers, often nonunion, for fewer dollars than big commercial projects. ‘Back to where we started’ Both sides of the picture are clear for Mr. Leohr of Pride One. When the housing downturn hit in Datacore 2005, Pride One was building and selling about 80 homes a year. Now Consulting, LLC Pride One no longer builds single- family homes, leaving that business to national home builders. Instead, Pride One pursues small commercial construction work to sustain a staff that numbers 13 now compared with 30 in 2005. Though business for many still isn’t robust, the uptick in construction has produced some improvement in the region’s building business. The word “optimistic” is back in use, though universally prefaced by “guardedly.” Bright Solutions Roger Gingerich, partner-in-charge of the real estate and construction group at Skoda Minotti CPAs, Busi- Headquartered in Cleveland, Ohio Datacore Consulting is ness & Financial Advisors in May- a premier Managed Service Provider for an array of I.T. field Village, said optimism levels among the region’s construction Services. Our focus is on Organizations with 5 to 99 contractors are back to where they Network Servers, which allows us to create solutions, were in 2008, before the devastating downturn struck. which empower your organization with the tools to “Optimism hit bottom in 2010 and compete and win in today’s highly competitive global has started to come back,” Mr. Gingerich said. “There is some opti- marketplace. mism, though not strong optimism.” Mr. Gingerich’s pulse-taking is in %\IRFXVLQJVSHFLÀFDOO\RQVROXWLRQVGHVLJQHGIRUWKLV the form of Skoda Minotti’s 4-year- old survey of trends in the construc- market we are able to create and implement enterprise tion industry. level solutions on a limited budget. As a leading service “The bleak outlook is gone and we’re back to where we started,” Mr. provider of network engineering, software and hardware Gingerich said. This year, 38% of the solutions; from software development and database more than 100 contractors returning Skoda Minotti’s survey said they engineering to project management and network believe there will be more opportu- solutions, we provide complete solutions that get results. nities in the future; that’s the same percentage as in 2008, and it’s up from 27% and 23% in 2009 and 2010, respectively. However, the No. 1 concern is Dataguard Server Virtualization Network Monitoring unchanged: a lack of work going forward. Serverguard Desktop Virtualization Cabling & Infrastructure “Several contractors are busy, but many worry about their lack of back- Cloud Services Software Development Help Desk log for the future,” Mr. Gingerich said. Jeffrey Gliebe, CEO of Krill Construction Co. in Cleveland, illus- trates the point. Mr. Gliebe said he is We’re proud to be on the distinguished list of Weatherhead 100 guardedly optimistic because, after Winners. Datacore would like to sincerely thank our clients years of discussion, many of the big local projects such as the convention for allowing us the privilege of serving their technology needs. center are under way, although it’s hard to see what sector will fuel broad future growth. Who’s knocking at the door? 5755 Granger Rd., Suite 777 Big local contractors say two ways Independence, Ohio 44131 they are finding business is by www.datacoreonline.com looking for it out of town or by Toll Free: 800.244.4241 pursuing specialties. Jeff Martin, president of the Geis Phone: 216.398.8499 20111205-NEWS--8-NAT-CCI-CL_-- 12/2/2011 2:03 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011

The penalties for going over those allocations, though, are severe. Over- Indians: Competing in free agency not in team’s plan ages will be taxed 75% for bonuses up to 5% over the recommendation; continued from PAGE 1 national market and the simple White and Drew Pomeranz, for Putting the hammer down 75% and a loss of a first-round pick spend the most on draft bonuses as matter of avoiding a work stoppage. starter Ubaldo Jimenez and the $21 for overages between 5.1% and 10% a way to compensate for their gen- “Our job is to take the structure million left on his deal. Previously, teams adhered — above the recommendation; 100% eral inability to compete for pricey and find a way to win,” Mr. Shapiro They brought back the often- sort of — to a bonus slotting system and the loss of first- and second- free agents against top-grossing said in an interview last Thursday, injured Grady Sizemore on a one-year recommended by MLB, but there round picks for an overage of 10.1% teams such as the New York Yan- Dec. 1, with Crain’s. “Owners and contract that could reach $9 mil- were no penalties for exceeding the to 15%; and 100% and the loss of two kees and , they likely players create the system, and our lion. They traded with the Atlanta slot, just a stern glare. For instance: first-rounders for overages of 15% or would be hurt the most by the job is to win within the system.” Braves for starter Derek Lowe, and The Indians by far exceeded the slot more. new system. However, those clubs The pending change in the rules will pay $5 million of his $15 million recommendation when they drafted Doing the math, the team with the remain guarded in talking about it for spending on players in base- salary. Lakewood Saint Edward product highest bonus allocation — the — a situation baseball observers ball’s annual amateur draft comes With anticipated raises to the Alex Lavisky in the eighth round in Houston Astros in next summer’s chalk up to the power of big clubs as the Indians’ front office execu- team’s top young players through 2010 and paid the a $1 mil- draft — will start losing draft picks in running the game. tives in recent months have made the arbitration process, the Indians’ lion bonus. The MLB-suggested when they reach $12.09 million in Consider the measured response good on a promise they’ve stated payroll could jump back to the $70 amount for Lavisky was $150,000. bonuses. Six teams spent $11.5 of Indians president Mark Shapiro repeatedly throughout the team’s million range from $49 million last Under the new agreement’s million or more on bonuses last year, to the new agreement: He cites the dry spell — that they will spend season. terms, teams depending on where with the Pittsburgh Pirates leading positives, including a competitive money when the time is right. It’s ironic, then, that with the they pick would have from $4.5 mil- the way at more than $17 million; the balance lottery for small-market, In a trade with the Colorado Indians following through on their lion to $11.5 million allocated for top three spending teams spent over low-revenue teams, the potential Rockies, the Tribe last July dumped spending promise, Major League draft bonuses for players selected $14 million. for greater competition in the inter- its top two pitching prospects, Alex Baseball wants to rein them in. in the first 10 rounds. The Indians spent $8.2 million on draft bonuses this past summer, drafting from the eighth spot; the with the critically acclaimed exhibition Indians spent $9.4 million in 2010. Presented in conjunction The Indians will draft in the middle of the first round next year after finishing 80-82 last season; the team’s bonus allocation, then, likely will come in around $8 million. The picks are the thing The Indians remain unwilling and unable to compete with the league’s top spenders in free agency, so the draft remains the team’s best way to stockpile top talent (and, in the case of the Jimenez trade, turn that talent into proven major-leaguers). Thus, while it’s likely the Indians begrudg- ingly would stomach the extra couple million in taxes if the team went over the league’s recommendation, it appears from comments by Mr. Shapiro that they’re unwilling to forfeit the draft picks the new rules would force them to lose. “That’s true for every team,” said Mr. Shapiro, who predicted no teams would spend over their slots and thus pay the draft penalties. “Picks are of greater consequence.” Michael Weiner, executive director of the Major League Baseball Players Association, told ESPN.com in a Q&A that the union “had heard from general managers and other people in baseball operations … that they weren’t in favor of some of the pro- posals.” How, then, did the deal get pushed through? According to Mr. Weiner, the league “said that what (it was) trying to achieve was competi- tive balance.

Organized by the Cleveland Museum of Art with the “We questioned them, really at THROUGH Nanjing Museum. Heaven and Earth Glowing Red, every turn, on whether their proposals Chinese Art in an JANUARY 8, 2012 1964. Nanjing Museum. would achieve those goals,” Mr. Weiner Presenting sponsor: told ESPN.com. “We did question Age of Revolution whether restricting the ability of low- Baker Hostetler finish clubs in any fashion to spend ClevelandArt.org on the draft really was (good for) 1-888-CMA-0033 Additional support from: competitive balance.” Mr. Shapiro would not comment FU BAOSHI on whether the Indians were one of the teams that opposed these draft penalties, saying only that he was involved in the discussions at inter- TWO PERSPECTIVES ON CONTEMPORATRY CHINESE ART mittent times and had no presence THE ART OF REINVENTION: in the final negotiations between the Wednesday, November 30, Internationally known discusses his use of The partners of Squire, Sanders & Dempsey LLP are the proud sponsors of this second in a series league’s labor committee and the 6:30 p.m., Recital Hall. artist Ji Yunfei and Paola traditional Chinese painting of four lectures established to honor James H. players’ union. But rest assured, the CHINA, OHIO AND THE NEW GLOBAL DempseyECONOMY Jr.’s distinguished career at the firm Indians and other small-market, Morsiani, Curator of media to express contem- and his devotion and service to the Cleveland Wednesday, January 4, 2012, With opening address Discover how understanding organizationsMuseum of Art. have signifi- dependent-on-the-draft clubs led Contemporary Art, offer porary ideas. By contrast, the charge against the changes. 9:30 a.m.-12:30 p.m. from Ambassador James China can inform an inter- cant ties with China convene And yet those teams still are hesi- diverseKeith, and perspectives keynote address on Paolanational Morsiani business considers agenda in a dialogue to explore how tant to criticize the deal. Dayton Moore, general manager trendsfrom Alexander and new M. directionsCutler, Chinesefor Cleveland artists and who beyond. are A Cleveland can benefit from in the contemporary work part of the contemporary of the Kansas City Royals — which President and CEO of Eaton distinguished panel of re- China’s emergence as one of spent the third-most on draft bonuses of Chinese artists. Ji Yunfei avant-garde. in 2011, at just over $14 million — Corporation. gional and national business, the world’s leading economies. told The Kansas City Star, “We really academic, journalism, and believe that whatever the rules are, government leaders whose FREE, reservations required. we have to adapt to them and be successful within the confines of the structure.” ■ 20111205-NEWS--9-NAT-CCI-CL_-- 12/1/2011 2:44 PM Page 1

DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Ratner sees solution to Tech prevalence helps e-recycler Cleveland company takes advantage of focus “(Electronics recycling is) NYC housing shortage in clearly an industry that’s on ‘green’ practices, handles old electronics growing now and has even more room for modular construction By MICHELLE PARK Mr. Silverstein said of E-Scrap’s additional growth.” [email protected] growth. “I don’t believe we’re slowing By THERESA AGOVINO the soured economy. How- down at all.” – Kevin Lawlor, spokesman, Insti- Crain’s New York Business ever, the $4.9 billion pro- Thanks to the ubiquitous use of He anticipates the company will tute of Scrap Recycling Industries ject’s signature element, electronics and the spread of the add at least 10 employees in the Developer Bruce Ratner the arena that will be the green movement, E-Scrap Solutions coming year. Plus, he expects to E-Scrap’s clients include a couple thinks he has found a solu- home of the Nets basket- of Cleveland is logging substantial open a second recycling and pro- hundred local schools, companies in tion to the city’s vexing ball team of the NBA, is growth. cessing center in another state by Northeast Ohio and nationwide, and housing shortage and wants under way and should be E-Scrap, a computer and elec- the second quarter of 2012. government entities. In addition, E- to showcase the answer at completed next fall. tronics recycling company, said its The entire electronics recycling Scrap hosts roundups where residen- his massive Atlantic Yards Ratner The surrounding resi- staff has more than doubled since sector has grown dramatically in tial users can drop off electronics. project in Brooklyn, N.Y. dential buildings are slated January to 28 employees from 13. It recent years. According to a recent Most of the company’s new hires The CEO of Forest City Ratner — to be built using modular units that also has increased its physical space report by International Data Corp. are people who work on the disas- an arm of Cleveland real estate are constructed offsite, then fitted at 7510 Bittern Ave. on the city’s East of Framingham, Mass., the sector sembly line, where they take apart giant Forest City Enterprises Inc. — into the steel that serves as the Side to 65,000 square feet from 43,000, employed more than 30,000 full-time computers and other items, Mr. wants to construct 15 apartment tower’s frames. The process has been said Craig Silverstein, who founded workers in 2010, up from 6,000 in Silverstein said. towers planned for the 22-acre site widely used in a variety of projects, the company in January 2007. 2002, and collected and processed The volume of materials brought by using modular construction, but never on a structure as tall as E-Scrap obtains materials, such domestically more than 3.5 million in for recycling or reuse is up 25% to claiming it will shave about 20% off the one planned by Forest City. as cell phones, televisions, computers tons of end-of-life electronics last 30% in 2011 from last year, he noted, the construction costs. He said he Designing a bracing system to and monitors, and sells them for scrap year, up from 600,000 tons in 2002. and revenues are up about 25%. The hopes to start assembling and con- protect against wind and other or to dealers that refurbish them for “It’s clearly an industry that’s privately held company does not dis- structing the first test case — a 32- forces has been a challenge. Forest reuse. growing now and has even more close revenue figures. story, 350-unit residential building City said it believes it has overcome “As you see more and more of the room for additional growth,” said A good portion of the company’s stacked on the corner of Flatbush the problem in collaboration with government, the corporations, going Kevin Lawlor, spokesman for the growth, Mr. Silverstein noted, occurred Avenue and Dean Street — this spring. SHoP Architects, Arup structural green, they are now thinking, ‘Hey, Institute of Scrap Recycling Indus- after E-Scrap attained two industry “We could build 20% more engineers and XSite Modular. where do we send our computers, tries, which represents recyclers. certifications this year. housing this way,” Mr. Ratner said. If Forest City reaches a union deal our electronics, for recycling?’” Mr. “People are purchasing and using “Some companies will not deal “This could be positive for the city.” and finds financing, it intends to Silverstein said. more electronic products, and given with you unless you are certified,” he Mr. Ratner faces numerous chal- make the modules in a factory in the “I’m definitely not surprised,” that, they’re recycling them more.” said. ■ lenges. He must reach a deal with city, said MaryAnne Gilmartin, various building trade unions in executive vice president at Forest which they’d agree to the lower City. If the idea of building this way labor costs that modular construction takes off, the factory could create promises. His company also still modules for other developers, cre- needs to obtain financing. ating even more jobs. Thursday - January 12, 2012 “At this point, we are pursing the In modular building, roughly 60% 7:00 - 8:00 a.m. • Breakfast & Networking prefabricated model,” Mr. Ratner of the construction is done in a 8:00 - 9:30 a.m. • Panel Discussion insisted, adding that Forest City has factory. That means less conges- The Ritz-Carlton, Cleveland been working on this approach for tion, noise and pollution around the more than two years. building site, Ms. Gilmartin noted. New building, more jobs A naysayer isn’t convinced Union officials also hope a deal A factory also can be a safer envi- ADVISORY BOARDS: can be struck. ronment for construction workers A POWERFUL, COST-EFFECTIVE “We are in the process of at- as they toil inside on the ground tempting to reach an agreement on rather than outside. Still, not every- modular construction that will work one is convinced this style of con- WAY TO STRENGTHEN YOUR BUSINESS for the building trades and Forest struction will be safe for residents. City in an effort to create permanent “Past experience has shown that employment opportunities for our designing a ‘bracing system’ for members,” said Gary LaBarbera, prefabricated steel buildings to pro- TOPICS president of the Building and Con- tect against storms has been chal- struction Trades Council. lenging,” said City Councilwoman Construction of the site has been Letitia James, a longtime Atlantic • Choosing the right people – identify, • Advisory board operations: structure, delayed for years by lawsuits and Yards foe. ■ recruit, compensate schedule, accountability • Developing the board’s purpose and goals • Learn the details of a 27-year advisory Area Verizon retailer eyes board success story bigger national profile By MICHELLE PARK of achieving national status is being SPONSORED BY: [email protected] one of the first agents to sell Verizon’s newest products. Determined to become one of The company, which conserva- Verizon Wireless’ top national agents, tively expects $40 million in sales an Independence-based chain of companywide this year, expanded Verizon retailers has spent this year quickly during 2011 into new mar- expanding aggressively, and expects kets, including central Pennsylvania to do the same next year. and Detroit, a city where it now The Wireless Center has increased operates a handful of locations. its number of locations to 34 in By the end of 2012, the company Northeast Ohio, up from 27 a year intends to open another 15 to 20 ago. Across its five-state footprint, locations in Northeast Ohio, either which includes Michigan, Kentucky, by acquiring other dealers’ locations Pennsylvania and West Virginia, the or by simple expansion, Mr. Hasan chain counts 60 locations, up from said. 40 a year ago. Already, The Wireless Center is Eight more locations are slated to one of Verizon’s larger premium open yet this year. authorized retailers, according to “We want to get a national Tony DePinto, district manager for contract,” said Junaid Hasan, one Verizon Wireless, Northeast Ohio. REGISTRATION INFORMATION: of The Wireless Center’s three “There are a few that are growing www.CrainsCleveland.com/Breakfast founders. “We want to be considered rapidly, and they are one of them,” not a regional player, but a national he said. “They just do a great job for us. player.” He noted that an advantage I can’t say enough about them.” ■ 20111205-NEWS--10-NAT-CCI-CL_-- 12/1/2011 4:21 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Fresh start new year is just around the corner. It’s a perfect time for a wounded Republican Party to get back in the good graces of Ohio voters by resolving to eliminate a gaggle of taxA breaks that do little but deprive the state of needed revenue to balance its budget. It’s unfortunate that Gov. John Kasich and the Republican-controlled Legislature haven’t attacked unnecessary tax loopholes with the same zeal they showed in taking on public employee unions over FROM THE PUBLISHER the state’s collective bargaining rules. Voters last month rebuked the governor and his colleagues for passing Senate Bill 5 as they repealed with 61% of the vote the law that whacked the collective Read this week’s paper? Kasich hasn’t bargaining rights of public employees. Here is an opportunity to regain some of that lost goodwill. he Honorable John Kasich don’t take that as an affront. My opinion, you hinted at in your remarks. Republicans don’t need to look hard to start the Riffe Center after all, is worth about as much as yours, “I have found my life’s a lot better if I process. As we first noted in this space in mid-April, Columbus, Ohio and it all depends on who’s doing the don’t get aggravated by what I read in the the state’s own Tax Expenditure Report provides a reading or listening, right? newspaper,” you said, and elaborated by TDEAR GOV. KASICH: Since you’ve been elected, much has saying that you read some stories and list of 128 “tax expenditures” — tax breaks that take been said and written about your shoot- “things I need to know about.” I’m guess- the form of exemptions, deductions and credits You and I haven’t met yet, which is from-the-hip style, and it certainly can ing many of those are these positive sto- and collectively add up to more than $7 billion in unfortunate, given the fact that your have its drawbacks. I, for one, find it ries and editorials, including ones from revenue that the state forgoes each year. Cleveland office is a short two refreshing to have a governor Crain’s, that your staff distributes to me- These tax breaks go on and on, without a formal blocks from ours. Perhaps one BRIAN who doesn’t carefully weigh dia across the state. review as to whether individual breaks produce of these days you’ll meet with TUCKER every word, worried about that I’m guessing that you think those enough economic benefit to merit their existence. our editorial board for a discus- hour’s poll results. stories and editorials that support your Even business interests agree that it shouldn’t be sion of issues important to the And while the jury’s still out, I view and praise your administration are this way. business community in North- think your idea about privatizing OK to read. It’s just those critical ones A year ago, the Ohio Chamber of Commerce and east Ohio. economic redevelopment could that are so darned annoying. It is a sincere invitation, and I have a great upside for our state, While I hope you and your team are the state’s eight largest metropolitan chamber of extend it with the full knowledge and Mark Kvamme certainly wildly successful, I worry about folks who commerce groups (including the Greater Cleveland that you don’t seem to much seems to have been a great say they don’t read newspapers because Partnership) issued a report titled, “Redesigning value the work done at newspa- “get” for your administration. they don’t want to get “aggravated.” We Ohio: Transforming Government into a 21st Century pers, at least according to some Now, back to your speech at need a governor keenly attuned to Institution.” Included in the report’s valuable comments you made last week at a the Columbus College of Art & Design, what’s happening around this state, and contents is a recommendation to implement a speech. I don’t know if you lump busi- during which you shared the fact that reading newspapers could be the easiest regular and comprehensive tax expenditure review ness newspapers into this group or not, you “rarely read a newspaper.” Granted, and most effective way to achieve that. to determine which tax breaks are worth the cost of but that’s beside the point, really. We’d you’re not alone in that regard. Profes- Perhaps at one of the most critical retaining and which are not. still like to meet. sional athletes and coaches have for junctures in its history, Ohio needs citi- I’m sure that if you don’t read newspa- years been claiming they don’t read crit- zens who are well-informed, and reading As the report notes, tax breaks can be valuable pers, then you pay even less attention to ical stories written about them. It makes your local newspapers is part of that economic development tools, provided they yield columnists like me. And believe me, I them more comfortable, which is what process, even when they criticize you. ■ increased investment and employment in the state. An example is the Ohio Motion Picture Tax Credit, which significantly has increased the number of THE BIG ISSUE films made in Ohio and the jobs associated with them. A new study says the average American today is nearly 20 pounds heavier than the average American in 1990. On the flip side, we must ask whether it’s worth- Should government have a role in getting people into shape? while for the state to bypass an estimated $211 million in revenue in the current fiscal year by exempting the first $1 million of a business’s annual taxable gross receipts from Ohio’s already-low commercial activity tax rate. Instead, each taxpayer pays just $150 on the first $1 million. Reducing the number of tax breaks makes for sensible tax policy. That’s because the fewer exemp- tions that exist, the greater the ability of the state to spread out the tax burden in a way that could lower rates for all businesses. DUSTY PRALL ELIZABETH KELLY EMILY HONSA HICKS TOM KOREK Ohio Republicans could seize the political upper Lakewood Medina Cleveland Olmsted Falls hand going into the 2012 elections if they were to No. I think the government The government does have a There’s a failure of education, No. There’s already too much make the elimination of various business tax breaks should stay as far out of it as role, but at bottom it is an (especially) at the lowest government influence in our a key part of their agenda next year. Some of the possible. … It becomes (a issue of personal responsibility. income levels. … (Education lives. … But I think it is a matter) of individual health care We have a responsibility to and) subsidies should be major issue. We have to police largest business groups in the state have given them issues. ourselves, our family and our tailored to nutritious food. ourselves, so to speak. the cover to do so. They should take advantage of communities to eat properly There are opportunities for this opportunity for a fresh start while they still have and to exercise adequately. government to be involved. it. ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. 20111205-NEWS--11-NAT-CCI-CL_-- 12/1/2011 12:53 PM Page 1

DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 Fudge, other pols have compromised ■ Following the failure of the con- Spending increased because of the gressional super committee to find LETTERS wars in Iraq and Afghanistan ($2.3 solutions to our federal deficit, Brian trillion), the economic stimulus ($1.7 Tucker in his Nov. 28 commentary He also encouraged readers to trillion including TARP and the Spend stated, “Right now, none of them — contact the rest of the congressional recent payroll tax cuts) and President NEW YEAR’S EVE except for Rep. LaTourette — has delegation representing Northern Bush’s Medicare prescription drug had the courage to say that it’s time Ohio to “demand that they start program ($600 billion). We did not with LONI LOVE to compromise and do what’s right,” acting like responsible adults who raise taxes to pay for our new spending from the a reference to Steve LaTourette’s care more about their constituents and we did not cut spending to pay “Chelsea Lately Show” renounced pledge to Grover Norquist than they do about their powerful for the tax cuts. to never raise taxes. Washington positions.” He specifi- Were these good investments? In If courage is measured in compro- cally named U.S. Reps. Marcia Fudge, my opinion the recent stimulus Dinner & Show mise, Mr. Tucker completely over- Dennis Kucinich, Betty Sutton, spending was a very good investment. Packages Available looked or was unaware that Rep. Marcy Kaptur and Jim Renacci. It prevented a depression despite Marcia Fudge has called for compro- I totally endorse Mr. Tucker’s praise precipitating economic conditions Call the Club for Details mise and recognized the need for it of Steve LaTourette, and I called his that were worse than those of the 216-696-IMPROV(4677) — before the column was written. office to thank him. The last thing we Great Depression; shifted our GDP www.clevelandimprov.com Let me share with your readers need is to have our members of Con- from declining at a 6% annual rate to some of the statements she made in gress pandering to the demands of increasing at a 2% annual rate; dou- a recent radio interview: lobbyists over the needs of their con- bled the value of the stock market; “When you are in a legislature, the stituents. stopped job losses that reached a whole thing is the art of compromise. However, I take issue with Mr. high of 800,000 jobs per month; and DEVELOPMENT OPPORTUNITY If you are unwilling to compromise, Tucker lumping all the other dele- stimulated an average of 100,000 you are really not doing justice to gates into the same basket. Of the new private-sector jobs per month WEST 9TH STREET PARKING LOT - FOR SALE your position. group he listed, Jim Renacci is the for nearly two years. “Two-thirds of the American only one who signed Grover Where should we focus our atten- people — that being Republicans and Norquist’s pledge ... and he did it this tion going forward to reduce the Democrats alike — want a balanced year. Readers should call him at 202- deficit? Economists project that 52% approach to balancing the budget. 225-3876 and tell him to renounce of our long-term spending will be on Which means looking at the revenue his pledge to lobbyists. Medicare and Medicaid, 20% will be side and looking at the deficit side, I have been following the work of on Social Security and 28% will be on but nobody wants to do that. the other representatives, and I don’t everything else, assuming we don’t “I talk to a lot of people just to find see them kowtowing to “Washington get involved in any more wars. As such, out where we can find some com- positions” as Mr. Tucker suggests. I we need to control the costs of Medi- mon ground.” see them fighting for the programs care, Medicaid and Social Security. Still not convinced? their constituents tell them they want How can we do that? Helping “I mean, we all have what we call supported. So, your readers need to people improve their health may be our sacred cows. Everybody has them. call them to clarify which programs the best way to control these costs, But at some point we have to be able to support and which ones to oppose. and improving lifestyle practices ‡ *UHDW/RFDWLRQLQWKH:DUHKRXVH )RUPRUHLQIRUPDWLRQ to find something that is going to may be the most effective way to Quite frankly, the domestic discre- (QWHUWDLQPHQW'LVWULFWRI'RZQWRZQ 'DYLG32¶1HLOO0&56,25 move us forward.” tionary programs that get the most improve health. In fact, 70% of &OHYHODQG 7KRPDV.*XVWDIVRQ The congresswoman said and attention don’t matter very much chronic diseases (such as cancer, ‡ )URQWDJHRQ:HVWWKDQG:HVWWK  believes all of those things. She has heart disease and diabetes) are from a budget deficit perspective 6WUHHWV $UWKXU$/DZUHQFH reached across the aisle numerous and they already have been cut caused by tobacco, lack of exercise ‡ $SSUR[LPDWHO\$FUHV  times in her first two terms. significantly. These include all ear- and poor nutrition. ‡ 7RWDO3DUNLQJ&DVK)ORZLQJ In July, she successfully worked marks, and most of the budgets of Chronic diseases account for 75% ‡ ,QYHVWPHQW2SSRUWXQLW\ with Republicans to win approval of the Departments of Agriculture, Edu- of all medical costs, 83% of Medicaid www.ostendorf-morris.com the Schiff-Fudge-Bass Amendment cation, Energy, Health and Human costs and 96% of Medicare costs. If to the Energy and Water Appropria- Services (excluding Medicare and See LETTERS Page 12 tions bill. This measure boosts Medicaid), Housing and Urban funding for ARPA-E (Advance Research Development, and Justice, as well as Projects Agency-Energy). Modeled the Environmental Protection Agency after the highly successful defense and the National Aeronautics and program, DARPA, the ARPA-E initia- Space Administration. tive will enable companies and aca- Since 1960, domestic discre- So much is changing around us... demic researchers to pursue high- tionary spending has ranged from risk/high-reward research on energy. 3.2% to 5.2% of total federal govern- Is it time for YOU to make a change? The boost in funding was appro- ment spending. They are projected priately offset with cuts elsewhere in to account for 4.3% in 2011, drop to the federal budget and will reverber- 3.2% by 2014, and reach a new It’s time to consider if you’re getting the service you need… ate directly in our local economy record low of 2.8% in 2016. the service you deserve from your CPA firm. with projects under way or being To put this in perspective, 24% of sought by local partners such as our federal budget was spent on mil- Case Western Reserve University. itary in 2010, not including veterans’ Maloney + Novotny, one of Ohio’s largest and fastest growing certified Mr. Tucker’s column missed the benefits. Should we keep cutting public accounting firms, will take the time to fully understand your mark regarding Congresswoman discretionary programs? In my Fudge. Mr. Tucker is correct — com- opinion, the answer is no, for the needs. We celebrate more than 80 years of offering expertise, tools, promise is urgently needed to move most part. We need to make sure our this nation forward. So is a policy to spending is limited to programs that resources and exceptional service clients deserve. responsibly address the fact that are efficiently managed and producing approximately five Americans are outcomes we value, but we should looking for work for each available avoid most cuts that will result in job It’s time. job. The complex issues facing our loss or harm our still-fragile econo- nation require someone willing to my in any way. look at all sides. She’s demonstrated Our current deficit is caused by that over time, with no pledge to two basic problems: During the past back off from now when the going 10 years, federal spending has been gets tough. increasing and tax revenues have Belinda Prinz been decreasing. Historically, tax Communications director revenues and spending have been U.S. Rep. Marcia L. Fudge about 20% of gross domestic product Cleveland 216.363.0100 (GDP), but in 2011, tax receipts are Canton 330.966.9400 Cutting deficit may start expected to be only 14.4% (the low- est of any major nation in the world) Elyria 440.323.3200 with healthier lifestyles while spending is expected to reach maloneynovotny.com ■ In Brian Tucker’s Nov. 28 commen- 24.1%. So, we are literally spending tary headlined, “A pox on the cow- 67% more than we are taking in. ards in Washington,” he congratulated Tax revenues dropped because of U.S. Rep. Steve LaTourette for the Bush-era tax rate cuts, and declaring that he would no longer because the people who had lower feel compelled to abide by Grover earnings during the recession paid Norquist’s “no new tax pledge” as he lower taxes. These two factors cost works to develop solutions to our about $3.2 trillion and $3.9 trillion current federal fiscal crisis. respectively. 20111205-NEWS--12-NAT-CCI-CL_-- 12/2/2011 8:37 AM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011

GOING PLACES JOB CHANGES to partner; Mark J. Scarpitti and Kimberly K. Wyss to members; DISTRIBUTION Danielle A. Higgins to associate. ROSCOE MEDICAL: Daniel A. MANUFACTURING Radish to CFO. BRENNAN INDUSTRIES: Matt Stahr Dannemiller Petersen Trouten EDUCATION to customer service manager. NORTHEAST OHIO MEDICAL MOEN INC.: Andrea Conroy to UNIVERSITY: Fayez F. Safadi to director of marketing, Retail Business professor, Department of Anatomy Unit. and Neurobiology and Ohio Research Scholar. NONPROFIT AIDS FUNDING COLLABORATIVE: FINANCE Melissa Federman to director. FIFTH THIRD BANK, NORTHEASTERN CLEVELAND HEARING & SPEECH Anderson Meyer Pulliam OHIO: David Dannemiller to senior CENTER: Dr. Maria O’Neil commercial banker. Ruddock to coordinator, Training and Outreach Services; Jinai Amos to FINANCIAL SERVICE development associate; Katie L. MCMANAMON & CO.: Daisy Yu to Richlick to development coordinator; associate. Eugene Carroll to billing specialist; Roberta Peterson to outreach WESTERN RESERVE PARTNERS specialist; Raisa Santana to data LLC: James R. Petersen and specialist; Jill Hazelbaker to speech- Thuermer Zaidan Gerney Alexander J. Trouten to analysts. language pathologist. HEALTH CARE THE HOLDEN ARBORETUM: Stephen Sedam to senior director of UNIVERSITY HOSPITALS: Dr. development. Michael R. Anderson to chief The Sky Quest Travel Experience: SHAKER HEIGHTS PUBLIC LIBRARY: medical officer, UH Case Medical ◆ Maureen Nicholas Brodar to youth Relaxing travel with no waiting in lines, no carrier delays Center and UH Rainbow Babies & AIR CHARTER SERVICE ◆ services manager. AIRCRAFT MANAGEMENT A flight that departs on YOUR schedule Children’s Hospital. ◆ A private aircraft with a crew you know and trust SERVICE ◆ Substantial savings over jet card programs HOSPITALITY Scarpitti Wyss Higgins ANDERSON BIRO LLC: Kent Bondi ◆ One-way flights available with NO repositioning fee THE GREENHOUSE TAVERN: Matt to director, Credit and Collections Danko to pastry chef. SAFETY ◆ SERVICE ◆ CONVENIENCE Division. INSURANCE S&P DATA LLC: Charisse Sayles to human resources director, North HOFFMAN GROUP: Amy F. Shupe America. to marketing coordinator. TECHNOLOGY LEGAL PARAGON CONSULTING INC.: BENESCH: Michael J. Meyer, Stahr Federman Sedam Anne Smith to office administrator; Northern Ohio’s Premier Air Charter Company LaVonne E. Pulliam, John J. Northern Ohio’s Premier Air Charter Company Nicole Kuzius to quality assurance Thuermer and Megan C. Zaidan to consultant; Mark Merritt to network associates. 216-362-9904 www.FlySkyQuest.com [email protected] support technician; Barb Anthony DAY KETTERER: Blake R. Gerney and Adam Rock to developers.

BOARDS ASSOCIATION OF CORPORATE Thank you to the sponsors of the COUNSEL — AMERICA, NORTH- Brodar Bondi Shifrin EAST OHIO CHAPTER: Elizabeth A. Rader (Cleveland Clinic Foundation) to president, president-elect. 2011 DAVID A. BOWERS president; David G. Slezak to vice president; Dena Kobasic to secre- AWARDS ECONOMIC FORECAST tary; John D. Moran to treasurer. CJN FOUNDATION: Susan C. ASSOCIATION OF INDIAN PHYSI- Levine to president; Gayle I. Horwitz CIANS OF NORTHERN OHIO: Dr. LUNCHEON Featuring Sam Thomas, PhD and Eric Rubin to vice presidents; Arun Gupta (South Pointe Hospital) John B. Hexter to secretary; Alan received the Distinguished Physician Yanowitz to treasurer. of the Year Award. CLEVELAND INSTITUTE OF ART: NATIONAL ACADEMY OF HUMAN Michael Schwartz to vice chair and RESOURCES: Joseph B. Ruocco chair-elect. (Goodyear Tire & Rubber Co.) was LEAD SPONSOR: NATIONAL ORGANIZATION OF named a Distinguished Fellow. SOCIAL SECURITY CLAIMANTS’ REPRESENTATIVES: Debra S. Send information for Going Places to Shifrin (Shifrin Newman Smith) to vice [email protected].

GOLD SPONSOR: LETTERS

continued from PAGE 11 our tax system to make sure we we improve health, we not only collect enough taxes to cover the reduce the cost of Medi-care and costs of whatever we decide is most Medicaid, we also increase the important for our nation. number of years people are able to I am willing to pay more taxes to work so they do not need to retire do that, and I think most citizens early. This increases tax receipts are as well. paid to Social Security and decreases the number of years people collect Michael P. O’Donnell Social Security. Editor in chief To increase physical activity, American Journal of Health Pro- improve nutritious eating and motion reduce tobacco use, we need to improve access to affordable nutri- WRITE TO US tious foods, provide places and time Send your letters to: weatherhead.case.edu for people to be physically active Mark Dodosh, editor, and help people quit smoking or Crain’s Cleveland Business never start. We also need to reform e-mail: [email protected] 20111205-NEWS--13-NAT-CCI-CL_-- 12/1/2011 2:15 PM Page 1

DECEMBER 5 - 11, 2011 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 16 IN SOME CASES, PARALEGAL HIRING ON THE RISE. LEGAL AFFAIRS

The renovated Calfee Building was home to East Ohio Gas Co. in 1916. CALFEE BUILDING ON HISTORY Law firm set to move into renovated structure that first opened in 1916 as home to East Ohio Gas

By AMY ANN STOESSEL But the attorney’s personal version of [email protected] reality TV soon will be coming to an end. Calfee’s nearly 300 employees are slated here have been times when to move into the renovated space at the Brent D. Ballard, managing part- end of this month, occupying 100% of ner of Calfee, Halter & Griswold the 115,000-square-foot building, which LLP, has felt like he was living will carry the law firm’s name. Tout an episode of “This Old House.” Located at East Sixth Street and Rock- “Every time you open a wall, there’s well Avenue, the historic seven-floor something that needs to be done,” Mr. structure that originally was constructed Ballard said during a recent tour of the for the East Ohio Gas Co. had in recent circa-1916 building that soon will be years fallen into a state of disrepair and home to the law firm’s downtown Cleve- neglect. What once served as East Ohio’s land offices. See CALFEE Page 17

ABOVE: Brent D. Ballard, managing partner of Calfee, Halter & Griswold LLP, says the new Calfee Building represents an investment both in the firm and in downtown Cleve- land. LEFT: As part of the renovations, what once was used as a parking garage is undergoing a transformation back into a lobby. JANET CENTURY PHOTOS/ RENDERINGS AND PHOTOS PROVIDED Managing partner title harder to define in a few words

By MICHELLE PARK legal consulting firm that conducted [email protected] Leaders’ roles expand as organizations adjust to new industry realities the survey. “When money gets tight, minor issues become major, ra C. Kaplan thought he had Aronoff LLP characterizes his He and other managing partners continuing growth in profitability and major issues become life- the wind at his back when he debut as “walking into a tsunami.” continue to grapple with added and the retirement and succession threatening.” became managing partner of a Months after Mr. Kaplan became pressures. of Baby Boom lawyers. Today’s firm leaders are ques- local law firm in January 2008. the attorney responsible for run- A survey conducted in April and “Being managing partner is a lot tioning their service delivery models IBusiness had boomed the year ning the firm while maintaining a May revealed that law firm managing easier when everybody’s making and seeking ways to improve effi- before. book of business, The Great Reces- partners and chairs across the plenty of money,” said Eric Seeger, ciency, Mr. Seeger explained. In retrospect, the leader of sion began, hurtling challenges at country are concerned about pricing a principal with Newtown Square, Perhaps this is a sign of how Benesch, Friedlander, Coplan & him he hadn’t anticipated. pressures, erosion of demand, Pa.-based Altman Weil Inc., the See PARTNERS Page 18 20111205-NEWS--14-NAT-CCI-CL_-- 12/1/2011 1:08 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 LEGAL AFFAIRS

What do you look for in a law firm? Patent law now focuses on first to file vs. first to invent n Sept. 16, President MICHAELDIAMANT A petitioner will be required to Barack Obama signed the show that it is “more likely than Leahy-Smith America not” that at least one claim is Invents Act, or AIA, the unpatentable. Post-grant review Omost comprehensive overhaul to proceedings will take effect one year the United States patent system after enactment and apply to patents since 1836, to encourage invention filed 18 months after enactment. and create jobs. In subsequent U.S. Patent and Trademark Office or litigation Here are some highlights of the ADVISER proceedings, the petitioner will be new law: stopped from raising invalidity arguments that were raised or First to file replaces reasonably could have been raised first to invent the application filing date, instead of the date of invention, and it will in prior post-grant and inter partes Under the America Invents Act, include public use or sale in and review proceedings. the U.S. patent system is changed outside the United States. Litigation-related provisions from a first-to-invent to first-inven- The prior art status of a U.S. tor-to-file system, which is similar patent or patent application While a patent application still to most foreign jurisdictions. claiming the benefit of a previously must disclose the best mode of use, Strong leadership. However, there is a one-year filed foreign patent application will failure to disclose the best mode is grace period for public disclosures be determined from the foreign no longer a basis to claim invalidity. made by the inventor or by some- priority date and not the U.S. filing Individuals may no longer bring one who obtained the subject date. false marking claims without proof matter from the inventor. (Effective Determining whether an inven- of actual damages. The recovery of for patent applications and patents tion is obvious will be analyzed as $500 per article is limited to the Competing in today’s business climate can feel like you’re in the jungle. issued 18 months after enactment.) of the effective application filing U.S. government. Interference proceedings eventu- Inventors may “virtually mark” To survive, you need experienced advisors with the necessary legal skills and date and not the date of invention. ally will be replaced by derivation products with the word “patent” or leadership to help guide you through even the toughest business challenges. proceedings, with the current sys- Third-party challenges “pat.” and a publicly available Inter- For nearly 80 years, Walter Haverfield attorneys have taken pride in providing tem remaining available for certain Currently, third parties may re- net address associating the patented creative solutions that allow our clients to minimize risk while maximizing legacy patents and applications. quest an issued patent be re-exam- article with a patent number. their business opportunities. Derivation proceedings can be ined by requesting ex parte (limited Failure by an accused infringer to If this doesn’t sound like your current law firm, perhaps it’s time to start initiated by inventors who believe participation by the requestor) or obtain the advice of counsel with that a published application or inter partes (greater participation respect to any allegedly infringed looking for a new one. patent covers an invention that was by the requestor) re-examination. patent or to present such advice derived from their own work. A Under the AIA, third parties will at trial may no longer be used to newly formed Patent Trial and have more opportunities to partici- prove either willfulness or intent to Cleveland | 216.781.1212 | www.walterhav.com Appeal Board will hear the argu- pate during the examination induce infringement. ments. process and after issuance. Different accused infringers of Publicly known information, or During examination, a third party the same patent, making different prior art, will be measured against may submit prior art, along with an products, no longer can be joined explanation of its relevance to a in the same lawsuit. pending application. Miscellaneous provisions After issuance, a third party will have two new post-issuance review The USPTO may set its own fees proceedings at its disposal effective necessary for recovering its operating Four reasons why we one year after the enactment of the expenses, which will result in a 15% AIA: increase in many fees charged to ■ A new inter partes review pro- applicants. are simply the best. ceeding will require a third party to Within 10 days of enactment of request a re-examination of an the AIA, for a $4,800 fee, applicants Reminger is proud to announce that four of our partners issued patent by showing a reason- may request for expedited exami- able likelihood of prevailing as to nation of a filed application in have been honored as Cleveland 2012 Lawyers of the Year by Best Lawyers®: the invalidity of at least one claim. which a final determination of Third parties requesting ex parte patentability is made within one Kenneth P. Abbarno re-examination still will only have year of filing their application. 2012 Cleveland Transportation Law Lawyer of the Year to present a substantial new ques- tion of patentability. These are only some of the provi- ■ A post-grant review proceeding, sions of the America Invents Act. Mario C. Ciano which must be filed within nine Understanding all of the changes 2012 Cleveland Personal Injury Litigation - Defendants Lawyer of the Year months of a patent’s date of issuance, and implications requires a far may be based upon several more detailed analysis. ■ George S. Coakley grounds, including anticipation 2012 Cleveland Professional Malpractice Law - Defendants Lawyer of the Year and obviousness. Mr. Diamant is a partner in the The new proceeding also may Cleveland office of Taft Stettinius & consider any failure to satisfy the Hollister LLP. Also contributing to Leon A. Weiss enablement and written descrip- the article was Stephen F. Rost, an Akron 2012 Cleveland Litigation - Trusts & Estates Lawyer of the Year tion requirements for filing a U.S. associate in the firm’s Indianapolis Cincinnati patent application. office. Cleveland Columbus Sandusky GET DAILY NEWS ALERTS FROM CRAIN’S! Toledo Register for free e-mail alerts and ■ Small Business Report: A Youngstown Abbarno Ciano Coakley Weiss receive: weekly guide to small business Ft. Mitchell ■ The Morning Roundup: A col- news Lexington lection of the day’s business news SIGN UP NOW AT: Louisville from Ohio’s daily papers CrainsCleveland.com/register ■ Breaking news alerts: When ■ 216.687.1311 major news happens, you’ll know Crain’s on Twitter: @CrainsCleveland ■ Daily headlines: A collection of Crain’s-produced news and blog ■ Crain’s on Facebook: Reminger.com Results. Period. items from the day Facebook.com/CrainsCleveland 20111205-NEWS--15-NAT-CCI-CL_-- 12/1/2011 12:59 PM Page 1

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 LEGAL AFFAIRS Firms cite economic reasons for rise in paralegal use

By MICHELLE PARK recruiting fits that pattern,” said partments. Rodgers, the principal who over- they’re hiring more paralegals. And [email protected] Dennis J. Foster, president of Major Most of the postings to Ursuline’s sees paralegals in the firm’s Cleve- Squire Sanders’ Mr. Rodgers notes Legal Services. “Smaller firms network have come from corpora- land litigation department, can’t that paralegals are working hand in mid the gloomy reports tend to charge less, so their firms tions, Ms. Brown said, though she say there’s been a marked increase hand with attorneys. about fewer job prospects benefit during a tough economy.” declined to identify them. in their number in the recent year. “What a first-year (associate) for recent law school Employment of paralegals and Cleveland law firm Tucker Ellis He, too, cited cost as a motivator. might have been doing can now grads comes a sunny fore- legal assistants is projected to grow & West LLP has been growing its “You may have in the past used perhaps be done by a paralegal, castA for another law profession: 28% from 2008 to 2018, much faster paralegal ranks probably 10% year (paralegals) for organizational pur- and a younger associate can turn to The hiring of paralegals is up and than the average for all occupations, over year for a few years, according poses. Now, they’re being asked to other things instead of spending projected to stay that way. according to the U.S. Department to managing partner Joe Morford. bring different skills to the legal time and client resources on some- Ursuline College in Pepper Pike of Labor’s Bureau of Labor Statistics. Today, the firm employs 35 parale- environment,” Mr. Rodgers said. thing that can be done by a skilled has seen a moderate increase in “Employers are trying to reduce gals and 105 lawyers in Cleveland “They’re on the cutting edge of paralegal,” Mr. Rodgers said. the number of paralegal jobs costs and increase the availability — “a big ratio,” Mr. Morford says. technology.” In the short term, lawyers may employers are advertising to its list and efficiency of legal services by Client demands are a big reason need to work to figure out where in of students and alumni, said Anne hiring paralegals to perform tasks for that situation, he said. Putting the ‘e’ in paralegals the legal service delivery chain they Murphy Brown, assistant professor once done by lawyers,” the BLS “Times are tough for companies, Employers today expect more can add the most value as they del- and director of the school’s legal reported in its 2010-2011 Occupa- and they want efficiency from their experience, particularly in technol- egate more tasks to paralegals, said studies program. tional Outlook Handbook. outside counsel, and paralegals ogy such as e-discovery, from para- James Wilber, a principal with legal “It’s been very encouraging,” “Demand for paralegals also is can help us provide that,” Mr. legals, Ursuline’s Ms. Brown said. consulting firm, Altman Weil Inc. Ms. Brown said, noting how re- expected to grow as an expanding Morford said. “The clients are Most also are seeking candidates Lawyers no longer may be paid for cruitment of paralegals had slowed population increasingly requires more concerned with cost control with bachelor’s degrees who’ve content and process, but for coun- when the economy tanked in 2008. legal services, especially in areas than they ever have been before.” been trained by programs approved seling and advocacy only, he said. Major Legal Services LLC in Cleve- such as intellectual property, Also, Tucker Ellis has ramped up by the American Bar Association. land has observed a similar trend. health care, international law, the nationwide litigation it’s doing To that end, Ursuline College’s ‘Efficiency means everything’ Though the legal executive search elder issues, criminal law, and out of Cleveland, and that means program became ABA-approved in Mr. Wilber isn’t saying it’s going firm does not keep hard statistics environmental law.” more need for paralegals, he said. 2007, and two years ago added an to happen quickly, but he believes on paralegal job searches, it has “I think, across the board in the advanced legal technology class to the legal profession is on the brink received calls from in-house legal What clients want legal industry, there’s a lot more its curriculum. of a new surge in the use of parale- departments seeking to increase The increased use of paralegals respect for the paralegal position “The paralegals that are coming gals. He cites, as others do, the their paralegal staffs, said Deborah — who often are tasked with gath- than may have existed decades into the field need to know how to intense focus on legal expenses by Peters, director of recruiting. In ering and summarizing a variety of ago,” Mr. Morford said. “When the use this stuff,” Ms. Brown said. clients and changes to the law firm addition, smaller law firms have documents — is not occurring economy was starting to turn, Some argue the increased use business model. been hiring paralegals to assist with everywhere in Northeast Ohio: A people started turning to paralegals of paralegals is more bad news for As more attorneys make the work that may have been handled number of area law firms reported and saw the terrific work that they recent law school graduates, but move away from the traditional bill- previously by junior attorneys. their paralegal use has not spiked. could do for them.” Ms. Brown doubts it. able hour to fixed fees, “efficiency “During recessions, corporations However, many local law profes- Squire, Sanders & Dempsey is “It’s not the same job,” she said. means everything to make a profit,” tend to retain more (legal) work in- sionals are seeing increased para- using paralegals for more than it Leaders at Tucker Ellis say they’re Mr. Wilber said. house, so the increase in corporate legal hiring by in-house legal de- has in the past, though Joe not hiring fewer lawyers because He cites, as an example, his current

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Calfee: The Right Move 1405 East Sixth Street, Cleveland, OH 44114 | calfee.com 20111205-NEWS--17-NAT-CCI-CL_-- 12/1/2011 12:57 PM Page 1

DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 LEGAL AFFAIRS Calfee: Energy efficiency features integrated

continued from PAGE 13 showroom for gas appliances was even being used as a parking garage. “You could see what that lobby used to be like,” said architect Bob Porter of his first impressions of the building. Mr. Porter’s firm, Vocon Inc., is designing Calfee’s space.

The building, on the National JANET CENTURY PHOTOS Register of Historic Places, also ABOVE, RIGHT: Calfee law firm employees soon will move into the new Calfee Build- served as home to a number of other ing at East Sixth Street and Rockwell Avenue, which is undergoing major reno- businesses, including KWY radio vations, as managing partner Brent D. Ballard demonstrates. and WKYC-TV, Channel 3, before going dark after a failed attempt to we’re standing.” center, he sees the building as the put condominiums in the building. Not only is the managing partner perfect place for his law firm. Vacant since the early 2000s, the excited to be close to projects such “It sort of fits us like a glove, now structure now has a more certain fu- as the medical mart and convention and in the future,” he said. ■ ture; Calfee has signed a 20-year lease with options for additional years. “What we’re doing, the investment we’re making, is not only good for our law firm but the city of Cleve- land,” said Mr. Ballard, who did not disclose Calfee’s costs for the renova- tions, which started in summer 2010. MY BENESCH Making it work The newly named Calfee Building — for which the developer is Steve Calabrese and the structure’s archi- tect is Sandvick Architects — ulti- mately is a mix of old and new. “Technology companies “People work differently today,” Mr. Ballard said. “We’re able to face unique legal issues. drop into this historic structure a 21st-century law firm.” Thankfully, we don’t face The building features smaller them alone.” individual offices (even for the firm’s partners), with more emphasis MIKE BRODERICK placed on open spaces for informal Co-founder & CEO gatherings and meeting with others. Turning Technologies “This really is about the way lawyers are working,” Mr. Ballard said. “This is about firing people up.” It’s an office design that is catching up to the legal industry, according to Mr. Porter. “The trend is more work gets done when we collabo- rate with other people,” he said. Historic tax credits were used for the project, which means there were added stipulations to the design. For example, all aspects of the two- story atrium’s historic shell needed to remain visible, meaning ceiling- to-floor walls could not be used in the wide open space. The solution: glass dividers, some of which can be made temporarily opaque for privacy purposes. Also now located within the parking-garage-turned-lobby are a fountain, seating and reception area. Conference rooms and a food service section, including café-style booths MY TEAM Cleveland and seating as well as space set aside for a market, are on the upper level. Calfee also has incorporated Columbus According to Inc. magazine, Turning Technologies is the fastest-growing privately other amenities such as an exercise room and rooftop garden. “Ulti- held software company in the nation. They also top the Weatherhead 100 list. In Indianapolis mately you want people to be less than seven years, Turning Technologies has grown to 110 employees with healthier,” Mr. Ballard said. distribution in 84 countries, which presents some interesting legal challenges. Plans are in place to apply for gold Philadelphia level Leadership in Energy and En- That’s why they trust Benesch as their general counsel. Our team approach gives vironmental Design (LEED) certifi- cation, standards that are particu- Shanghai Turning Technologies access to legal experts with a wide array of specialties ranging larly challenging given the age of the from global IP protection and human resources to mergers and acquisitions. building, according to Mr. Porter. White Plains Green features include water- conserving fixtures, efficient lighting To learn more about our relationship with Turning Technologies, visit controls and a white roof, which Wilmington beneschlaw.com/myteam reduces heat gain and will lessen the building’s overall energy usage. www.beneschlaw.com Cleveland pride For Mr. Ballard, a native of Northeast Ohio, the project is nothing short of a labor of love. “We’re really part of the revital- Featured attorneys (left-right): GREGG EISENBERG, CHRISTOPHER REUSCHER, ROSS J. KIRCHICK, MARK AVSEC, BRYAN SCHWARTZ, ization of downtown Cleveland,” he STEVE AUVIL, M. CASEY KUCHARSON, RICK TRACANNA, BRYAN JAKETIC and JOSEPH GROSS. said. “Look at all the things that are © 2011 Benesch Friedlander Coplan & Aronoff LLP happening a block from where 20111205-NEWS--18-NAT-CCI-CL_-- 12/1/2011 12:58 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 LEGAL AFFAIRS Partners: Time management one of biggest challenges continued from PAGE 13 “You can’t be complacent. ... It’s a constant effort to try returned to finish initial drafts. collaboration. daunting leading a firm is today: “It was classic, it really was,” Mr. Today, as he enters his fifth year Altman Weil is working with a num- to be better tomorrow than we are today.” Aronoff said of the day’s “multi- as managing partner, Mr. Kaplan is ber of firms that need to transition – Ira Kaplan (below), managing partner, ring circus.” proud of the way Benesch is imple- to the next managing partner but Benesch, Friedlander, Coplan & Aronoff LLP “The biggest challenge is time menting its strategic plan. He are having difficulty finding candi- and time management,” said Mr. notes, for example, how the firm dates willing to do the job, Mr. Aronoff, who oversees approxi- closed a merger with an Indi- Seeger said. mately 330 people in Thompson anapolis firm in March 2010 and Hine’s largest office, including 130 has completed a lot of lateral ‘Multi-ring circus’ lawyers. “From my perspective, to hiring that has been accretive to Even in better economic times, manage an office of our size, to do the firm. the role is a challenge. At the same it right, is effectively a full-time “I think it’s exciting because you time managing partners are tasked job. To practice and serve the can make a difference in your busi- with running a firm, they also serve clients that I serve in a way that I ness,” Mr. Kaplan said of being clients. would like could also be a full-time managing partner. James Aronoff cites Oct. 28 as a job. So the biggest challenge has “The job’s not done by any prime example. Mr. Aronoff, who been figuring out where to find means,” he added. “Never. You became partner-in-charge (or that balance.” can’t be complacent about how local managing partner) in Cleve- Naturally, a managing partner you run your business. It’s a land for Thompson Hine LLP ends up spending less time on constant effort to try to be better on Jan. 1, had spent months, client matters. tomorrow than we are today.” probably a year, planning the firm’s “You really don’t have a choice,” annual lawyers meeting in the city. said Mr. Kaplan, who oversees A penny for her thoughts Mayor Frank Jackson was sched- seven Benesch offices and approxi- For Anne L. Meyers, the job is uled to greet some 350 people at 4 mately 350 staff and attorneys. done. p.m. that Friday. As Mr. Kaplan’s days have Ms. Meyers shed her managing RUGGERO FATICA The phone rang at 1. A local com- involved more travel and strategic partner title in September after 17 pany had just finished negotiating planning, other partners have years of leading the small firm she the terms of the sale of a couple uments by Saturday morning. ple minutes to spare, arrived to assumed added responsibilities founded, Meyers, Roman, Fried- properties it had developed and Mr. Aronoff gathered a team to greet the mayor and introduce him and stepped into relationships berg & Lewis in Woodmere. would need a draft of the deal doc- handle the matter and, with a cou- to the lawyers. Later, Mr. Aronoff with firm clients, he said. It has been an interesting transi- tion to no longer be responsible for Never-ending job what needs to happen, she said. Orchestra leader and team Indeed, a friend gave her a piggy psychologist are two descriptions bank, and Ms. Meyers inserts Larry Oscar gives the job he, too, coins when she’s not minding her performs. business. She put in a handful of Mr. Oscar, who’s CEO (in quarters the first week alone, she Go for it. We’ve got your back. essence, managing partner) of admitted. Hahn Loeser & Parks LLP in Cleve- But don’t let her piggy-bank land, measures his success, in part, deposits fool you: This former in the growing number of projects managing partner is glad not to At Roetzel, our attorneys are like our clients - entrepreneurial, the firm, which employs 267, is wear that hat anymore. being hired to handle. “I now have the benefit of being innovative and results oriented. Just ask Doug Spiker. “Those things don’t happen able to practice law … without without tremendous amounts of having to carry the weight of teamwork,” he said. the day-to-day and the ongoing Mr. Kaplan accepted the reins of responsibility to manage the firm,” Benesch with the goal of helping it she said. reach the “next plateau” through Her successor, Peter Turner, growth and “hopefully effective has found his first three months on management.” the job “extremely demanding,” The firm was among many to particularly mastering the juggling reduce its spending and to cut staff act between managing his law and compensation after the eco- practice and the firm. He doesn’t nomic downturn. take for granted that Ms. Meyers is “That was not fun,” he said. “A around, and consults with her lot of really wonderful people … probably weekly, he said. were affected in not a good way.” “She formed the firm and has Another challenge to the job, been managing it since 1995,” Mr. Mr. Aronoff said, is managing Turner said. “So she’s been there, dozens of partners, many of done that. whom, if not all, want a say in “There’s a lot to be done,” he decision-making. To tackle the added. “It’s a learning experience. challenge, he has worked to I’ve got a lot to learn; I know improve communication and that.” ■

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DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 LARGEST OFFICE LEASES RANKED BY SQUARE FEET

Address Rank Building City, Zip Square feet Tenant Tenant representative Landlord representative 3355 Richmond Road 1 Corporate Park of Beachwood Beachwood, 44122 103,300 Adecco USA Inc. Ostendorf-Morris Co. US1 Real Estate 2 1100 Cherry Ave. SE Canton, 44707 100,000 The Timken Co. Allegro Realty Advisors Ltd. Ohio Realty Advisors 1801 Superior Ave. 3 The Plain Dealer Building Cleveland, 44114 97,684 MCPc Inc. Allegro Realty Advisors Ltd. Cresco Real Estate 4 200 Public Square Cleveland, 44114 71,000 Cliffs Natural Resources Inc. Jones Lang LaSalle Grubb & Ellis 6060 Parkland Blvd. 5 Parkland 2 Mayfield Heights, 44124 63,044 Ferro Corp. Ostendorf-Morris Co. NA PlayhouseSquare Real Estate 6 1240 Huron Road Cleveland, 44115 60,000 Greater Cleveland Partnership and COSE NA Service 7 4781 Richmond Road Warrensville Heights, 44128 42,922 Marcus Thomas LLC Grubb & Ellis NA 8 47 N. Main St. Akron, 44308 42,868 Austen BioInnovation Institute of Akron Allegro Realty Advisors Ltd. NA 9 S. Water St. & Erie St. Kent, 44240 42,756 Ametek Inc. CB Richard Ellis NA 1350 Euclid Ave. 10 US Bank Centre Cleveland, 44115 34,247 U.S. Government Studley Grubb & Ellis 11 6400 Rockside Road Independence, 44131 33,840 Miami Jacobs Career College NA Omni 1375 E. Ninth St. 12 One Cleveland Center Cleveland, 44114 32,527 Vorys, Sater, Seymour and Pease LLP Allegro Realty Advisors Ltd. NA 3875 Embassy Parkway 13 The Waterford Fairlawn 31,879 NA NA Munsell Realty Advisors Inc. 9199 Market Place United Food and Commercial Workers Union, 14 Market Place Broadview Heights, 44147 29,040 Local No. 880 Realty Professionals Dalad Realty 1660 W. Second St. 15 Skylight Office Tower Cleveland, 44113 28,278 SSA- Office of Disability Adjudication and Review NA CB Richard Ellis 190 Montrose West Ave. 16 Cross Pointe Akron, 44321 27,500 Bryant & Stratton College Cresco Real Estate Titan Realty Group LLC 17 4875 Higbee Ave. Canton, 44718 25,422 NA NA CB Richard Ellis Luttner Real Estate Investment 18 124 E. Hines Hill Road Hudson, 44236 25,000 Paychex NA Services 25777 Detroit Road 18 La Centre Westlake, 44145 25,000 R.E. Warner & Associates Inc. Jones Lang LaSalle NA 6050 Oak Tree Blvd. 18 Park Center Plaza III Independence, 44131 25,000 Farmers Insurance Jones Lang LaSalle NA 23240 Chagrin Blvd. 21 Commerce Park IV Beachwood, 44122 24,881 Howard Wershbale & Co. Jones Lang LaSalle NA 18780 E. Bagley Road Crescendo Commercial Realty 22 Southwest General Middleburg Medical Center Middleburg Heights, 44130 24,674 Southwest General Health Center NA LLC 23 700 Graham Road Cuyahoga Falls, 44221 24,655 Metropolitan Regional Service Council Dalad Realty Dalad Realty 3875 Embassy Parkway 24 The Waterford Akron, 44333 24,344 Virtual Hold Technology Grubb & Ellis John Dellagnese & Associates 300 Tuscarawas St. W. 25 City Center Tower Canton, 44702 24,000 Dollar Bank NA Tri-State Realty 244 LP 1621 Euclid Ave., Suite 610 26 Keith Building Cleveland, 44115 22,383 Global Crossings NA Ostendorf-Morris Co. 27 24950 Country Club Blvd. North Olmsted, 44070 22,126 Cargill Inc. CB Richard Ellis CB Richard Ellis 6000 Lombardo Centre, Suite 200 28 The Genesis Building Seven Hills, 44131 21,507 Chancellor University Cresco Real Estate Dalad Group 222 S. Main St. 29 O'Neil's Building Akron, 44308 20,848 Arcadis U.S. Inc. Jones Lang LaSalle Jones Lang LaSalle 1400 W. 25th St. 30 Massimo D'Milano Building Cleveland, 44113 20,000 Walsh Construction Grubb & Ellis Grubb & Ellis 5900 Landerbrook Drive 31 Landerbrook Corporate Center One Mayfield Heights, 44124 18,650 ABA Insurance NA The King Group 1255 Euclid Ave., Suite 300 32 Sterling Building Cleveland, 44115 18,613 Towards Employment NA Ostendorf-Morris Co. 33 4141 Rockside Road Independence, 44131 17,544 DeVry University NA The King Group 5005 Rockside Road 34 Crown Centre 1 Independence, 44131 16,867 Hewitt Associates NA Cresco Real Estate 2000 Auburn Drive Jacobs Real Estate Services 35 One Chagrin Highlands Beachwood, 44122 16,271 RAV Financial Services LLC NA LLC 3700 Embassy Parkway 36 Embassy Corporate Park Fairlawn, 44333 15,600 NA NA Munsell Realty Advisors Inc. 24651 Center Ridge Road 37 Point 6 Westlake, 44145 15,288 NA NA CB Richard Ellis 38 400 Third St. SE Canton, 44702 14,498 Chesapeake Energy Corp. Cresco Real Estate REM Commercial Mercantile Property 39 23293 Commerce Park Beachwood, 44122 14,170 NA NA Management 20800 Harvard Road 40 One Harvard Crossing Highland Hills, 44122 14,035 Carsource NA The King Group 3320 W. Market St. 41 Summit Park Square, Bldg. A Fairlawn, 44333 13,579 NA NA Dan Marchetta Realty Inc. 65-75 Erieview Plaza 42 Erieview Plaza Cleveland, 44114 13,184 City of Cleveland, Department of Health NA Cresco Real Estate 1375 E. Ninth St. 43 One Cleveland Center Cleveland, 44114 12,973 Mobile Hyperbaric Centers LLC CB Richard Ellis Gatto Group Inc. 24651 Center Ridge Road 44 King James Office Park, Point VI Westlake, 44145 12,928 Premier Physicians Center Ostendorf-Morris CB Richard Ellis Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our RESEARCHED BY Deborah W. Hillyer lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. Source: Information provided by CoStar Group Inc. www.costar.com and the tenant and landlord representatives. Information is for Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties for Oct. 1, 2010, through Sept. 30, 2011 and includes new leases. 20111205-NEWS--20-NAT-CCI-CL_-- 12/2/2011 2:01 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 Taxes: Drillers fear adjustment in budget shortfall 401(k) auto continued from PAGE 1 tion in Colorado to as high as 7.5% “Eventually, because profits are small and fleeting, enroll option About $670 million of the increased in Texas and 8% in Kansas, Com- they kill the goose that could lay the golden eggs.” receipts would go to the state itself. monwealth found. Another $129 million would go to For comparison purposes, Ohio’s – Jerry James, president, Artex Oil Co.; Ohio’s counties, while municipali- flat fee of 2.5 cents per MCF works president, Ohio Oil and Gas Association increases ties would see an estimated $255 out to be about 7.5% of the roughly million in additional revenues. $3.30 per MCF that Ohio producers that could lay the golden eggs,” Mr. Already, though, some state legisla- The association did not estimate currently receive when they sell James said. tors are considering a law banning participation what it thinks drillers’ total tax con- their gas, according to Mr. James. There likely will be calls for higher local communities from entering tribution will be, just the amount of But the current sale price of that gas taxes on the industry, though, and such agreements, said Ms. Mills, Rate jumps to 82% at new taxes it estimates will be gener- is quite low, he said, and if the price some observers already say drillers whose assertion is backed in recent ated by work in the Utica shale. It eventually goes up as drillers hope, should pay more in taxes to operate news items on the situation in firms that offer feature engaged economist Jack Kleinhenz, Ohio’s take remains the same — in the state. Among them is Teresa Jefferson County. president of Kleinhenz & Associates and thus decreases as a percentage Mills, founder of the Buckeye Envi- By JERRY GEISEL in Cleveland Heights, to make the of drillers’ revenues. ronmental Network and currently Blackmail, or not? Business Insurance estimates. If gas were to go to $4.50 per the Ohio children’s health organizer The industry isn’t opposed to “It’s not small potatoes,” Mr. James MCF, which still is a low price by for the Center for Health, Environ- paying its fair share, Mr. James said, Adding an automatic enrollment asserts, noting that total state, historical standards, Ohio’s tax would ment and Justice in Columbus. but is concerned when it hears feature to 401(k) plans can have a county and local government tax amount to about 5.6% of a driller’s Ms. Mills said she fears the comments such as those expressed significant impact on plan participa- receipts in Ohio could grow by 4% revenue from gas sales. Before the industry already is gathering its by Ms. Mills. tion, according to a new analysis. by 2015, just from the Utica shale shale gas boom reduced the price forces to escape paying for damage For every dollar a driller now On average, 82% of employees activity. Total tax revenues taken in for natural gas in 2009, drillers were to roads and other infrastructure makes in revenue, Mr. James said, whose employers have an automatic by all state and local government getting about $8 per MCF — and at near the operations. The damage is about 75 cents goes toward con- enrollment feature participate in entities in Ohio was about $23.8 that price, Ohio’s severance tax would caused largely by the truck traffic struction and drilling of the well, and 401(k) plans compared with an billion in 2010, according to the be only 3.1% of their revenues. required to conduct a hydraulic another 12 to 15 cents is paid in average participation rate of 55% for association. Right now, Ohio is offering fracturing operation, which involved royalties to the owner of the land plans without the feature, according On top of the taxes that all busi- drillers a fair deal, according to Mr. drilling into deep shale beds and where the drilling takes place. After to the Fidelity Investments analysis. nesses pay, Ohio currently taxes James, and that’s one reason they breaking them up with hydraulic paying taxes that already are in The difference in plan participation natural gas that’s extracted from are eager to develop the state’s pressure to release gas and oil. Each place, drillers make only about six rates is especially striking among anywhere in the state with a sever- shale gas deposits. well that extracts oil and gas via cents in profit for each dollar of gas younger employees. The average ance tax, which other producing “The state’s current tax and fee so-called “fracking” requires hauling they sell, he said. If those profit participation rate among eligible states also have in place. In Ohio, structure is very fair and ensures up to 1,000 tanker trucks of water, margins decrease further, drillers employees ages 20 to 24 is 76% in the tax is a flat fee — 2.5 cents for that Ohio can compete with other according to industry data, and may go elsewhere, he said. plans with automatic enrollment, every thousand cubic feet (MCF) of oil-and-gas producing regions many rural road systems weren’t Ms. Mills doesn’t buy that argu- compared with 20% in plans without gas that is produced, according to worldwide,” Mr. James said. designed to handle such loads, Ms. ment. The gas under Ohio won’t go automatic enrollment. Heidi Hetzel-Evans, spokeswoman At the same time, more employers A tempting goose Mills said. away, even if drillers do leave. So the for the state’s Division of Oil and “Should they be taxed more? Yes, state should be less afraid of taxing are embracing automatic enroll- Gas Resources Management. However, oil and gas producers and some of that money should go this industry than it is of taxing others, ment. According to data from the worry that Ohio legislators will turn to the affected local communities such as manufacturing, she said. This year, 21% of 401(k) plans that Commonwealth Foundation, a free- to them for more revenue by taxing that are going to be hit and have no “Of course they’re going to say Boston-based Fidelity administers market think tank that has been them more heavily in the future, funding for (road) repairs,” Ms. that,” Ms. Mills said. “They’re saying offer automatic enrollment, up from fighting higher taxation of shale gas especially if the state faces budget Mills said. the same thing in Pennsylvania: ‘If just 2% five years ago, according to in Pennsylvania, most other states shortfalls like it has in recent years. Ms. Mills said some areas, such you don’t let us do this, we’re going the Fidelity analysis, which is based tend to have severance taxes that Squeezing producers in that man- as Jefferson County in Ohio, near to take our rigs out of your commu- on plans its administers for about are expressed as a percentage of ner could turn out to be counter- Steubenville, have forced gas com- nity.’ … That’s just blackmail.” 11.7 million participants. Among the what the driller receives when it productive, according to Mr. James. panies to enter road-use agree- Mr. James said it isn’t blackmail; largest plans — those with at least sells the gas. Those taxes range “Eventually, because profits are ments that require drillers to repair it’s simple economics. 50,000 participants — 63% offer from as low as 2% for some produc- small and fleeting, they kill the goose and maintain the roads they use. Ohio’s shale gas is a major find, automatic enrollment, up from but it’s far from the only one in the 12.5% in 2006. United States, let alone the world. Under such programs, employees And most of the companies grabbing who don’t choose one way or another up leases in Ohio are big producers are automatically enrolled unless — the kinds of companies that they specifically object. have the resources and abilities not Automatic enrollment was given a just to pack up and move to Pennsyl- big boost in 2006 when Congress vania, but to move to Arkansas, passed legislation removing certain Montana or even other countries roadblocks that discouraged em- such as Brazil, or on the continent of ployers from offering the feature, Africa. while later Labor Department rules “It’s already a tough business to gave employers offering automatic make money in,” Mr. James said. “If enrollment programs protection We’ve put together you raise taxes, you decrease invest- from fiduciary liability if they met ment.” ■ certain requirements. ■ a winning combination. 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DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

WEEKEND OUTLOOK The National Retail Federation commissioned a nationwide survey to gauge shop- Computer: Students praise program pers’ holiday shopping attitudes, and found a record 226 million shoppers visited stores and websites over Black Friday weekend, up nearly 7% from 212 million continued from PAGE 3 parents, Mr. Callahan said. In some tions she focused on now are han- last year. More findings: OneCommunity in March 2010 cities, participating organizations dled at the state level. The simple Have you or will you go holiday shopping this Thanksgiving weekend? received $18.7 million from the have worked with businesses, col- computer skills she gained at that American Recovery and Reinvest- leges, government agencies and job wouldn’t be enough to do the 2011 2010 2009 ment Act of 2009 to help organiza- other nonprofits interested in training work she does now. tions in eight cities ramp up efforts their employees and others with “When you get up to date with Yes 56% 53% 52.1% to help people on low incomes learn whom they work. technology, it really does increase to use a computer and help them “There’s a value to (the employers) your confidence,” Ms. Golden said. No 44 47 47.9 find a way to afford Internet access. as well as a value to their employees,” All survey respondents were Participating organizations pro- he said. drawn from a list of 1,800 graduates vided those services on a smaller of the Cleveland Housing Network’s scale before the stimulus dollars Golden opportunity training program, all of whom had Retailers: Shoppers arrived and will continue to do so About 98% of the 624 program Internet connections as of June 30. once the money is spent, Mr. Calla- graduates who completed the About 1,500 had entered the Cleve- han said. phone survey said they would rec- land Housing Network’s program However, if training providers ommend the program to a friend. by that date, including many who cross off holiday list, can get partner organizations to Nearly half of the respondents said did not get Internet access and share some of the costs, they could they entered the Cleveland Housing some who did not complete the prevent their programs from Network’s training program partly training, Mr. Callahan said. buy for themselves shrinking too much, he said, noting to expand their job opportunities. He noted that OneCommunity that Cleveland-area organizations Of that group, 44% since have recently reached an agreement are training about three times as found a new job, received a promo- with a nonprofit called Mobile continued from PAGE 3 snow to get to them, as the weekend many people as they were before tion, entered work training pro- Citizen that would give all Connect and accessories boutique was one was atypically warm. the stimulus money arrived. grams or started a business. Your Community participants the of an “overwhelming” number of Ms. Dunn is among the optimistic “Nobody involved wants or intends Myra Golden falls into that group. option to buy a low-cost computer stores at Eton that recorded better who believe better sales during the to go back to where they were at,” After graduating, Ms. Golden and a year of cellular Internet ser- sales this year over last, said Aryn Thanksgiving weekend will mean he said. formed a consulting company that vice for $120 to $160. Derryberry, Eton’s general manager. higher sales throughout the season. For instance, the Cleveland works with a local nonprofit, helping People who take the courses like About half of the 48 shops and “I am seeing more people pur- Housing Network, which provides low- income parents receive public them because they understand they restaurants there are locally owned. chasing for themselves, and that has training to Cleveland-area resi- money for child care. Ms. Golden need to know how to use a computer, Likewise, traffic during Black not been as frequent or as common dents, has been talking to the recently retired from Cuyahoga given that it’s hard to apply for jobs Friday and the following Saturday at in the past few years,” she said. “If Cleveland Metropolitan School Dis- County’s Employment and Family without one, Mr. Callahan said. Legacy Village “definitely felt people are purchasing, rather than trict about incorporating the courses Services Department because some “It’s the everything machine,” he pre-recessionary,” said Marcie B. just going and buying for others, into the district’s programming for of the early childhood-related func- said. ■ Gilmore, the lifestyle center’s gen- that’s a pretty big indicator that eral manager. Fourteen of its 56 re- things are looking up for them.” tailers are locally owned, she noted. Another indicator, she added, is “I don’t think I talked to a single the customers she saw were more retailer … that said their traffic was relaxed, staying and talking longer, down,” Ms. Gilmore said. rather than displaying the “buy and Legacy Village has been open for leave mentality.” eight Thanksgiving weekends, and this year’s traffic probably cracks On the other hand … the top two or three, she noted. Stephen Hotchkiss isn’t con- “I think consumers’ confidence is vinced. up,” Ms. Gilmore said. An assistant professor of interna- Nationwide, the amount of money tional business at Notre Dame Col- spent — $52.4 billion — and the lege in South Euclid, Mr. Hotchkiss number of consumers shopping predicts seasonal spending will be this Thanksgiving weekend were the up only marginally when all is said highest since the National Retail Fed- and done. He cited “very high” con- eration began tracking the figures in sumer debt, “very low” personal sav- 2005, said the group’s spokes- ings, the spottiness of new employ- woman, Kathy Grannis. However, ment opportunities and the federal the National Retail Federation does government’s political indecision. not break out whether shoppers Jagdip Singh also is skeptical. patronize large or small retailers. “By all accounts, the Thanksgiving Barking up the right tree weekend sales numbers have raised hopes and renewed national opti- Several Cleveland-area business mism,” said Mr. Singh, the H. Clark owners said 2011 is a better year to Ford professor of marketing at Case be a small retailer, thanks in part to Western Reserve University’s the mass advertising of Small Busi- Weatherhead School of Manage- ness Saturday, an effort launched ment. “Yet, they represent an unex- last year by American Express. plainable and, largely unsustain- The Furry Nation, a Lakewood able, consumer exuberance that shop that sells pet supplies and fails to fit other economic data.” American-made toys for cats and Several economic challenges still dogs, doubled the sales on Small loom, he said, citing Congress’ chal- Business Saturday that it normally lenge to balance the budget and does on a “good Saturday,” and elevated unemployment. probably did 125% of what sales are on “In my mind, the jury is out if the an average Saturday, said owner Kat shift in consumer confidence is Berger. In contrast, last year was not going to be lasting,” he said. “We need terribly successful, Ms. Berger said. to see more data over time (that’s) And Revive, which sells fair trade not driven by deep discounting.” items including handcrafted apparel, The retail practice of Deloitte, over the Thanksgiving weekend one of the Big Four accounting recorded about 75% more sales firms, forecasts that total holiday year-over-year at its Cleveland spending will be up a moderate Heights shop, while its Legacy 2.5% to 3% nationwide from last Village location did fewer sales on year. According to the firm’s survey Black Friday and about the same on of holiday spending, 36% of Ohio Saturday and Sunday. respondents plan to spend less on Owner and director Lisa Dunn the holidays than last year, 53% said found it “fascinating,” as the Legacy they would spend the same and Village location regularly outper- 11% said they would spend more. forms the other store on those days. Among the 36% of Ohioans who Some customers preferred the inti- say they’ll spend less, the top reason mate, non-mall experience, she said. cited was higher food prices (66%), Another thing Ms. Dunn and other followed by higher gas prices (55%), business owners credit for their early concern about the economy (52%) holiday success: Shoppers didn’t and a worse household financial sit- need to go dashing through the uation (51%). ■ 20111205-NEWS--22-NAT-CCI-CL_-- 12/2/2011 1:40 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 5 - 11, 2011 Beachwood: Cohesive economic development strategy in works continued from PAGE 3 “Am I disappointed? Probably,” “We are developing a meeting, which is today, Dec. 5, the and warehousing, but has become seeing the cost of in-house economic he said. “We know we have to do cer- purchase of a building at 23456 home to training facilities, schools development soar to $500,000 a year, tain things to attract development.” plan. We know it’s going Mercantile Blvd. for $1.5 million. and other nonindustrial uses to the which included overseeing a busi- to cost money to make The city intends to tear down the point where 15% of the land area Ready to spend? ness incubator program, Beachwood money.” building to make way for a road that is in the hands of tax-exempt or decided it couldn’t afford the effort. Beachwood has two consultant would connect Commerce Park to government agencies, according to – Saul Eisen, council member, The city lost its economic devel- reports in hand — one on developing City of Beachwood Chagrin Highlands. The city believes the city’s Commerce Park study. In opment director, Vincent Adamus, a strategy for Commerce Park and a physical connection between the addition, Mayor Gorden estimated last March, and closed the incuba- the other the first step in developing two adjacent business districts will that Commerce Park has a vacancy tor a year ago. It since has commis- a master plan for marketing the city stock and improving traffic, espe- help it redevelop and market the older rate approaching 30%. sioned two consultant studies to for business attraction and reten- cially along the Chagrin Boulevard area. The Commerce Park study, pro- help the city develop a strategy for tion. The mayor and a fractious city corridor. The difficulty of moving traffic “We know that as new businesses duced by Oxbow Engineering Inc. of going forward. It hired Brad Sellers council now must come up with through areas where residential streets open up in Chagrin Highlands we’ve Painesville, noted that buildings in to oversee its economic develop- that master plan. intersect with Chagrin and Rich- had inquiries for office space” in the 200-acre district are approaching ment plans on an interim basis, but How much division exists among mond Road was a factor in organized Beachwood, Mayor Gorden said last obsolescence and need either Mr. Sellers, now mayor-elect of city leaders is unclear. The council resident opposition to the new hotel. Wednesday. “We have space avail- extensive remodeling or demolition Warrensville Heights, will leave at never took a formal vote on the “We are developing a plan,” Mr. able.” to make way for more attractive the end of the month. hotel rezoning. However, veteran Eisen said. “We know it’s going to new properties. Mayor Gorden said a search is council member Saul Eisen said last cost money to make money.” In need of an update The city also is considering allowing under way for staff to replace Mr. Wednesday, Nov. 30, that he had In October, a team of consultants The Ahuja Medical Center of Uni- office buildings in the northwest Adamus, now vice president of real the four votes needed on the seven- led by Columbus-based SZD White- versity Hospitals opened in Chagrin corner of Commerce Park to be estate and business development at member council to block the rezoning board advised the city to consider Highlands earlier this year. Mayor replaced by a residential or mixed-use the Greater Cleveland Partnership supported by the mayor. offering grants or tax credits to Gorden said he expects the hospital project. In September, three office business advocacy group. Hotel developer Scott Berkowitz companies that add jobs. They also and the planned opening in late buildings facing foreclosure — Com- The mayor said the decision of told Crain’s last Thursday, Dec. 1, suggested creating a tax increment 2012 of Eaton’s headquarters will merce Park I, II and III — were developers to scuttle plans for a that he will pursue other locations financing program that would redi- attract new businesses to the city. bought for $4.1 million by a devel- 135-room, $12 million Aloft hotel in the eastern suburbs for the hotel. rect new property tax revenue to But Commerce Park needs sprucing opment group that includes NRP was a disappointment, and he Mr. Eisen said he believes busi- pay for property or infrastructure up to complement Chagrin High- Group LLC, a Garfield Heights acknowledged the city needs to do ness retention and attraction need improvements. lands. developer known for its residential a better job of planning to attract to be near the top of the city’s priori- For its first step, city council is Commerce Park once was an area projects. No plans have been an- new development. ties, along with bolstering the housing expected to approve at its next dominated by light manufacturing nounced for the complex. ■

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DECEMBER 5 - 11, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Fast money, encourage hospitals to find ways to reduce NOVEMBER 28 – DECEMBER 4 unnecessary and costly emergency room and more of it visits. ■ MetroHealth has done similar work with The big story: Shale gas development is Running in Cleveland just became a little its heap of uninsured patients through its pumping more money into Northeast Ohio, as more profitable. “partners in care” program, where each Houston-based VAM USA announced it will Prize money at the Rite Aid Cleveland patient is assigned a medical team to spend $57 million to build a steel finishing mill Marathon will increase for next May’s race help manage his or her care. — Timothy in Youngstown. The company said the new mill and its sister 10-kilometer event, organizers Magaw would be attached to a $650 million tubular steel said last week. It will rise to $3,000 for the PHOTO PROVIDED mill V&M Star is building in Youngstown. VAM men’s and women’s marathon winners — up from $2,000 apiece last May — and Runners start the 2010 Rite Aid Cleveland said its finishing mill would open in phases, Marathon in downtown Cleveland. beginning in the middle of 2012, and would $2,000 for the men’s and women’s 10K win- What’s fowl is fair encompass 200,000 square feet. The company ners — up from $1,500 each. in Beachwood The men’s marathon winner will receive repeatedly came to MetroHealth’s emer- said it expects to hire 100 people for the plant, ■ an extra $3,000 if he breaks 2 minutes 20 gency room for non-emergency conditions. There’s no better model of modern which is to be fully online by the end of 2013. The Using a team of case managers, managed suburbia then Beachwood — good schools, larger V&M Star plant, about a million square feet seconds, and the women’s winner will earn the same bonus if she beats 2:40. Course care representatives and primary care docs to well-kept homes, plentiful nearby shopping in size, is expected to open by the end of next design a specific care plan for each patient, and chicken coops. year and employ as many as 400 people. records are 2:10:29 and 2:30:15, respectively. “The increase in prize money should the health system was able to reduce the Chickens? number of emergency room visits for the Yes, and now, maybe a goat or two. A race for deals: SuperTrapp Industries draw more elite runners in our marathon pilot group by 36%. “We have a number of chicken coops announced its second acquisition in a little over and 10K events and make for an even more Dr. Alice Stollenwerk Petrulis, Metro- around, believe it or not,” said longtime a month by unveiling its purchase of Fluidyne exciting finish line,” executive director Jack Health’s medical director for case manage- Beachwood City Council member Saul Powersports Inc. of San Bernardino, Calif. Staph said in a news release. ment, said the health system was able to Eisen. SuperTrapp, a maker of performance exhausts Participation rose to 18,300 runners in better coordinate patient care by essentially City council has been reviewing its long- for automotive and recreational vehicles, bought May, and race officials report registrations hounding patients to follow up with primary standing farm animal ordinance that allows Fluidyne, which it will operate as a subsidiary already are up 30% over this time last year. care doctors. chickens on lots greater than one acre, in called FPS Racing, for an undisclosed sum. FPS — Joel Hammond The effort was so successful that Metro- response to a resident who would like to add manufactures high-performance radiators, oil Health has expanded the program to as a goat to her flock of chickens. coolers and accessories for dirt bikes, ATVs and many as 50 emergency room regulars, Dr. Mr. Eisen said it’s never been a real prob- other off-road vehicles. On Oct. 27, SuperTrapp A payoff for hounding Petrulis said. The hope, she said, is to share lem, though he does recall a complaint he acquired JayBrake, a Springville, N.Y.-based patients at MetroHealth MetroHealth’s model with other hospitals in fielded from a Cedar Road resident who manufacturer of custom hand and foot controls ■ MetroHealth is getting more hands-on the city and across the state. angrily reported that a neighbor’s rooster for Harley Davidson and other high-end motor- with Medicaid patients who use its emer- “As a single system, it’s getting to be a big was perched on his porch. The city asked cycles. gency room a tad too frequently, and the load, but what it tells me is that intensive the resident to move the coop further away Making us hungry: A local food truck effort appears to be paying off for the hospital case management works,” Dr. Petrulis said. from the neighbor’s house. pioneer and an established area restaurateur are that is subsidized by Cuyahoga County. The original pilot project was spurred “Now, there’s no problem, except it might shifting the mobile street fare concept into a As part of an 18-month pilot project, the by a statewide initiative by the Ohio cock-a-doodle-do at 5:30 in the morning,” 6,400-square-foot bricks-and-mortar site in health system targeted 15 patients who Department of Job and Family Services to Mr. Eisen said. — Jay Miller downtown Cleveland that’s scheduled to open by the end of March. Chef Chris Hodg- WHAT’S NEW BEST OF THE BLOGS son, of food trucks Hodge Podge and Dim and Den Sum, Excerpts from recent blog entries on that FlashNotes, an online marketplace for and Scott Kuhn, owner of CrainsCleveland.com. college students to buy and sell their course Washington Place Bistro & notes, is moving from Cleveland to Cam- Inn and three other restau- But mom, it was only bridge, Mass., as it finalizes its first major fi- rants, are opening Hodge’s in COMPANY: nancing round, led by Atlas Ventures. Hodgson the space occupied by the Ridgid dinner and a movie FlashNotes expects to move into the At- French eatery Zinc, 668 Euclid Tool Co., ■ By now it’s no surprise to learn that many las offices in the next two weeks, its co- Ave., which is within shouting distance of East Elyria young adults have moved back in with their founder and chief operating officer, Dave Fourth Street. The restaurant will employ about parents due to the severity of the recession. Petruziello, told the Business Journal. 50 individuals. Zinc is scheduled to close at the PRODUCT: Indeed, one in four people age 18 to 24 did Along with the Atlas backing, Boston’s end of December. TriStand just that during the downturn, according to density of colleges is a big draw, he told the Pew Research survey data cited in a Wall newspaper. Ready to roll: Forest City Enterprises Inc. chain vise Street Journal story. FlashNotes allows students to upload said its Forest City Real Estate Asset Services Model Beyond numbers, though, the story offers their notes, often in PDF format, and set unit was selected by the Georgia Department of 460-12 practical advice for parents, their own prices, the news- Transportation to lead a project team in the as well as a helpful anec- paper reported. The com- development of a multimodal transportation dote from a suburban pany keeps 20% of the sale hub in downtown Atlanta. Forest City is partnering The company says it has expanded its line of portable TriStand chain vises with the Cleveland family. price and the student takes in the project with Cousins Properties Inc. and “While living at home the rest. Mr. Petruziello told The Integral Group, both based in Atlanta. introduction of the Model 460-12. Ridgid’s TriStand vises are intended to hold makes financial sense the Business Journal that it Forest City will be responsible for fee-based for cash-strapped twenty- launched last spring and master planning for the project, which will be PVC, steel and copper pipes. The Model 460- 12 has a 12-inch jaw and an extended chain somethings, it’s important focused on four universi- developed on a 119-acre site in the city. The for parents to establish that ties, but students from Cleveland-based real estate giant said specific to grip pipe diameters ranging from ½ to 12 inches. it’s not an open-ended another 40 colleges have responsibilities will include coordinating plan- arrangement,” The Journal said. started using the marketplace since then. ning, engineering and architectural activities. The chain vises are durable and are de- signed for rugged jobsites. Ridgid says the The Journal said Jon Marshall, 23, moved back in with his parents in a Cleveland The blot thickens in Priming the pump: The state of Ohio began base is optimized to provide more working area, with the pipe benders located at the suburb after graduating from college in accepting applications for InvestOhio, its new May, to money for graduate school. Cleveland and beyond small business job creation tax credit program. rear of the base for bending or adjusting ■ pipe. The large vise base also overhangs the “His parents don’t expect him to pay rent or “Blotting” is all the rage in Cleveland and InvestOhio offers a 10% state income tax credit household expenses, but he must put aside other older cities. on cash investments in qualifying small front legs to allow for clear tool swing. The 460-12 and the updated Model 460-6 about $20,000 of his salary at an architec- TheAtlantic Cities.com reported that businesses of up to $10 million. To qualify, the ture firm,” the newspaper reported. across troubled Midwestern cities, “home- investment must add to an existing business. It vise feature an integrated ground lug that provides a conductive surface to connect the His parents have access to his bank owners in failing neighborhoods are snap- cannot be used for the purchase of the entire account to make sure his saving stays on ping up adjacent vacant lots for their own business or for an asset acquisition. weld ground, and a jack screw to help stabi- lize the unit during use, Ridgid says. Both are track. Mr. Marshall told The Journal that use, creating block-lots, or blots.” when he goes out and spends more money Blotting “is an opportunistic response to In the mood to expand: Ambiance Inc. is self-hooking for pipe up to 4 inches. “The portable 460-6 and 460-12 TriStand than usual, “I have my mom the next morning urban decline that has been around for spreading the love to Columbus. The Cleveland- asking me why I spent so much.” decades,” the website said. based retailer of women’s intimate apparel this chain vises provide a variety of features that are designed with tough welding, threading In Chicago the price for most blots is month will open its eighth location, at 175 E. $1,000, while in Cleveland lots “go for as Campus View Blvd., just north of Interstate 71 off and grooving demands in mind,” says Larry Here today, gone Feskanich, product manager, pipe tools at little as $1,” according to the website. A state Route 23 in Columbus. It currently has four in a couple weeks spokeswoman for Cleveland’s Community stores in the Cleveland area and one each in the Ridgid. ■ For information, visit www.Ridgid.com. A promising Cleveland startup will be Development Department had no readily Akron, Canton and Youngstown markets. gone in a flash. available data on blotting but said the prac- The Boston Business Journal reported tice had been increasing. 20111205-NEWS--24-NAT-CCI-CL_-- 12/1/2011 12:59 PM Page 1

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