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Leaders Fear Stalled Cleanup Cash INSIDE 20120213-NEWS--1-NAT-CCI-CL_-- 2/10/2012 4:55 PM Page 1 $2.00/FEBRUARY 13 - 19, 2012 INSIDE Leaders fear stalled cleanup cash A new tune in battle over admissions taxes loans made by the Clean Ohio fund Local officials worry over state’s new criteria for brownfield fund help make these properties attractive Cleveland Mayor Frank Jackson to a new or expanding business that introduces a new plan to tax the By JAY MILLER may govern access to its dollars in Agency. would pass up a purchase if the city’s music venues, where club [email protected] the future. Cities use Clean Ohio money to company had to bear the cost of owners have been trying to ease The program is on hold until the test for and remove hazardous waste cleaning up a property, as required the tax burdens they face. PAGE 3 The Clean Ohio Fund, a state Kasich administration parcels out at what are called brownfields. Espe- under environmental laws. ALSO: loan and grant program created to responsibility for the state’s economic cially in older cities, it’s a critical Gov. John Kasich and his economic Meet Team NEO’s point help cities clean up environmentally development programs between phase in bring in new businesses to development team announced last man for the oil and gas contaminated properties, is stuck the new JobsOhio economic devel- a community. month that they have begun to lay boom. in limbo in Columbus. And that is opment nonprofit and the remains Brownfields are older factories, out the division of duties between PAGE 3 causing anxiety among local offi- of the former Ohio Department of gas stations, dry cleaners and any- JobsOhio and the new development cials who hope to tap into the fund Development that is evolving into where chemicals may have washed but are worried about the rules that the state Development Services into the soil. The grants or low-cost See CLEANUP Page 7 Indictment pokes holes in story of Zai’s success As businessman rose, some who dealt with him describe unease By JAY MILLER [email protected] In 2008, The Cleveland Group of Companies — the company at the lead in A. Eddy Zai’s business domain — was awarded the top spot on the Weatherhead 100, a prestigious list of the region’s fastest-growing compa- JANET CENTURY nies. Mark Dent, the general manager of Turner Construction Co.’s Cleveland office, at the site of Cleveland’s medical mart and convention center downtown. The com- The list was based on five years pany has 106 full-time professional employees, up from 45 in 2008. of sales verified by the nominated com- pany’s accounting By STAN BULLARD firm, and to win the [email protected] top spot, Cleveland WHEN th Group was able to ix work stations on the Hanna Building’s 14 show 8,026% sales floor sit empty in the dark, as has been the growth from 2003 to case for a half-year at Turner Construction 2007. NEEDED, Co.’s Cleveland office. But it isn’t for a lack Sof work at the giant construction firm. Zai In a December 2008 article in Inside Instead, the cubicles serve as a swing area where Business that was part of the maga- TURNER Turner’s field employees land between construc- zine’s Weatherhead 100 section, Mr. tion jobs. All Turner’s local field staff is now on job Zai described how fast the company’s sites in Northeast Ohio that range from the $465 growth had become by 2007. million Medical Mart and Convention Center in “We spent more than $100,000 TURNS IT ON downtown Cleveland to a multimillion-dollar job overnight (on equipment) to become replacing the high school in Westlake. a big player” in the public construc- Veteran construction company Turner’s empty desks are testimony to the tion business after winning several Dallas-based contractor’s ability to carry and shift key contracts, Mr. Zai said in a story credits mobility in meeting personnel as local markets and specialized projects that recounted his rapid rise in local ebb and flow. See ZAI Page 18 needs of newest big projects See TURNER Page 17 SPECIAL SECTION 07 7 SMALL BUSINESS NEWSPAPER Popular QR codes offer companies another Entire contents © 2012 74470 83781 messaging tool — if executed properly ■ Page 13 by Crain Communications Inc. Vol. 33, No. 7 0 PLUS: TAX TIPS ■ ADVISER ■ GETTING AHEAD ■ & MORE 20120213-NEWS--2-NAT-CCI-CL_-- 2/10/2012 3:22 PM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012 COMING NEXT WEEK HEALTHY DEMAND FOR HEALTH CARE JOBS Nonagricultural wage and salary employment in the United States should rise 15.2% this Where’s that food from? decade, to 150.2 million by 2020 from 130.4 million in 2010, according to estimates from the U.S. Bureau of Labor Statistics. The health care and social assistance sector is projected In our Meeting and Event to gain the most jobs, followed by professional and business services. The federal govern- 700 W. St. Clair Ave., Suite 310, Planner section, we analyze ment sector is projected to lose the most jobs. Here are data for the five sectors projected Cleveland, OH 44113-1230 to gain the most jobs and the three that are expected to fare the worst: Phone: (216) 522-1383 how the locally sourced food Fax: (216) 694-4264 craze is impacting caterers. Industry Net job change, 2010-20 Annual growth rate www.crainscleveland.com Plus, the Cleveland aquarium Health care/social assistance 5.64 million 3.0% Publisher/editorial director: Brian D. Tucker ([email protected]) is a hot draw for events. Professional business services 3.81 million 2.1 Editor: Mark Dodosh ([email protected]) Construction 1.84 million 2.9 Managing editor: Retail/trade 1.77 million 1.2 Scott Suttell ([email protected]) REGULAR FEATURES Sections editor: State and local government 1.64 million 0.8 Amy Ann Stoessel ([email protected]) Best of the Blogs ..19 Letters....................8 Assistant editors: Utilities -35,700 -0.7 Joel Hammond ([email protected]) Classified..............18 List: Largest 2011 NEO Sports Manufacturing -73,100 -0.1 Editorial ..................8 philanthropic gifts..16 Kathy Carr ([email protected]) Federal government -372,000 -1.3 Marketing and food From the Publisher..8 The Week..............19 Senior reporter: Going Places ........12 What’s New ..........19 SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV 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]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events coordinator: Jessica Snyder ([email protected]) Advertising sales manager: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Office coordinator: Toni Coleman ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Audience development manager: Erin Miller ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to custom- [email protected], or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20120213-NEWS--3-NAT-CCI-CL_-- 2/10/2012 4:20 PM Page 1 FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Jackson details plan to quell ticket tax fight Mayor’s proposal would offer discounts based on size; club owners still wary of harm done By TIMOTHY MAGAW to date on their back taxes, from [email protected] paying future admissions taxes. The issue blew up last year as the city Cleveland’s music clubs are turning started to aggressively hound venues up the volume in their fight to be to pay up their back taxes. freed of the city’s admission tax, but “If this (new proposal) is accepted, a new proposal from Mayor Frank then it’s over with,” Mayor Jackson Jackson wouldn’t let griping venues said in an interview with Crain’s completely off the hook. Cleveland Business. “We believe this Early last week, just days before a proposal is in line with what we had swarm of concerts took place across been talking about up until that the city to rally against the admis- other ordinance was introduced.” KEITH BERR PRODUCTIONS sions tax, Mayor Jackson’s office Under the mayor’s proposal, 75% Team NEO’s Jacob Duritsky quietly shipped a proposal to Cleve- of the total ticket sales by venues land City Council that, if approved, holding 250 or fewer people would would offer venues with capacities be exempt from the city’s admissions of 500 or fewer people varying tax, with the remaining balances CALLING ON ITS CLOSER breaks on the 8% tax levied on total being taxed at the existing 8%.
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