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%. ticket sales. Similarly, venues holding between Three council members, with the 250 and 500 people would receive a Team NEO tasks 30-year-old with playing matchmaker backing of local clubs, proposed an 50% exemption. ordinance last fall that would have “This is in line with what we had as state seeks to capitalize on sudden shale boom exempted venues holding 700 or been talking to council about for fewer concertgoers, that are also up See TAX Page 17 By DAN SHINGLER But Mr. Duritsky is playing to [email protected] win far more than a baseball THE WEEK IN QUOTES game, or even a pennant. As the p by three runs with “People will not pay “Roughly 75% of our two outs in the sev- point man for Team NEO’s enth inning, the relief efforts to recruit to Ohio com- the cleanup costs out work is for repeat pitcher takes the panies related to the oil and gas of their own pocket. customers.” Umound in Game Six. industry, he’s working on a — Mark Dent, vice president That’s money they significant pillar holding up the and general manager of Turner Whoever that pitcher is, he don’t have to spend if Construction Co.’s Cleveland probably knows how Jacob state’s economic development office. Page One hopes. And, with of the talk they go to a green- Duritsky feels — a little daunted, field.” a bit anxious and, if he’s as good about shale gas and oil being the lynchpin of Ohio’s rebound, — Joseph P. Koncelik, an envi- as the other players say he is, ronmental attorney with Frantz confident that he has the skills to expectations are plenty high. Ward LLP and a former director “No pressure, bud,” jokes Ned of the Ohio Environmental keep the momentum up and Protection Agency. Page One achieve victory for his team. See CLOSER Page 17

ABOUT JACOB DURITSKY “Once you get them to “It’s a two-way street. Age: 30 state’s growing oil and gas industry. College: Bachelor of arts in urban studies and Previously: After joining Team NEO in 2008, scan that code, you … We’re really a life- master of science in urban studies from Cleveland helped the group’s research efforts, including a can take them almost long partner with State University; currently pursuing Ph.D. in eco- big role in developing Team NEO’s Quarterly nomic development at CSU. Regional Economic Review. anywhere you want you.” Current role: Leading the efforts at Team Prior to Team NEO: Graduate and research to.” — Rick Sherlock, director of NEO, a regional business attraction and retention assistant for The Center for Public Management/ Cuyahoga Community College’s group, to lure to Ohio companies related to the Great Lakes Environmental Finance Center — Michael Schwabe, account Alumni & Friends Association. manager, thunder::tech, Page 15 Cleveland. Page 13 Risk management firm hopes prominent hire helps raise profile

By MICHELLE PARK Michael D. Davis, president and Mr. O’Brien, who has practiced him, and for good reason. He’s got a [email protected] CEO of the Risk International. in the risk and insurance field since good reputation.” “I think what we’re doing is well- 1989, left Oswald Sept. 1, 2010, after It appears Mr. O’Brien’s presence A little-known company in Fair- received by our clients,” Mr. Davis working there for a decade. He is paying off: Risk International al- lawn now has a well-known chair- said. “They stay with us. But we also wanted to pursue investments in ready has secured a new client since man to help grow it to recognizable. are a secret. private insurance businesses. he came aboard Jan. 1, and the com- David P. O’Brien, former president “There is a market out there for Unlike his final post at Oswald, pany is engaging in more meetings of Oswald Cos. in Cleveland, now is us, but we’ve just been hindered Mr. O’Brien is not involved in the with potential clients, Mr. Davis said. chairman of, and an investor in, either by our focus or our lack of day-to-day operations of Risk Inter- O’Brien Davis Risk International Services Inc., an experience in growing,” Mr. Davis national; Mr. Davis continues to Their No. 1 fan independent risk management continued. “We don’t have any run the company. Instead, Mr. awareness. Risk International started in 1986 consulting company that, although sales people. We’ve started here in O’Brien, who is not paid as chair- “He’s one of the top insurance as the risk management department 25 years old with four offices, is not the last three or four years experi- man, will offer guidance when he advice providers in town,” Mr. Davis of BFGoodrich Aerospace — now a familiar name to most. menting with sales classes, but can and is expected to produce for said. “There aren’t a lot of people (in Goodrich Corp. — and later was That situation will change, said there’s nothing like experience.” Risk International more brand the business) who haven’t heard of See HIRE Page 4 20120213-NEWS--4-NAT-CCI-CL_-- 2/10/2012 4:24 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012 2011 outpatient visits boost Metro The success of MetroHealth’s System continues expansion of urgent care outpatient operations is loosely tied with the growth of its insurance By TIMOTHY MAGAW paign,” included freeing up physi- offering, MetroHealth Select. [email protected] cians from administrative duties Enrollment in the program, which and adjusting scheduling models to in the past had been offered only to The MetroHealth System continues accommodate more patients. Cuyahoga County employees, nearly to muscle up its 16 outpatient loca- “The campaign was very well doubled this year to 4,406 enrollees. tions — a move that last year helped designed and very well executed,” said The plan had been extended to addi- prop up the financial results of the Dr. William Lewis, chairman of tional municipalities such as Olmsted Cuyahoga County-subsidized health the system’s market development Falls and Walton Hills but soon will system. campaign. “It did exactly what it be offered to Cleveland State Univer- In 2011, the system’s net patient was supposed to do.” sity employees, according to Phyllis revenues were about $705 million, Building on those successes, Marino, the system’s vice president or $24 million higher than the pre- MetroHealth this month started of marketing and communications. vious year’s $681 million. Officials offering urgent care services at its “We talked to a lot of groups, and said the increase was due, in part, to West Park location on West 150th they knew that the county was able to a 6.9% hike in outpatient visits. Street in Cleveland. Last year, the save a lot of money through us,” she said. While the system stomached a $2.7 system launched similar services MetroHealth’s most visible move million net loss for the year, a surge at its Broadway Health Center in in its quest to ramp up its outpatient in patient volumes, particularly in Cleveland’s Slavic Village. offerings perhaps was its announce- December, has system officials Moreover, MetroHealth plans to ment last fall it would build a 57,600- hopeful their strategies to bring in offer urgent care services this spring square-foot, $23 million health center more paying patients are working. at its health center off Chagrin in Middleburg Heights — the first of MetroHealth recently finished Boulevard near Interstate 271 in at least three similar health centers the tweaking its primary care operations Beachwood. system plans to build in Cuyahoga at its satellite clinics to bolster its “As we expand our patient popu- County. outpatient numbers and now is doing lation, urgent care becomes important Ms. Marino said the health system the same for its specialty service lines. because people get sick whenever anticipates announcing the location Some of those changes, which system they get sick,” Dr. Lewis said. “We’re of a similar project sometime this officials dubbed the “access cam- not able to schedule that.” year. ■

Hire: Chairman sees 10 to 20 new jobs

continued from PAGE 3 ranking of the 10 largest independent out the ESOP and form a new parent spun off into its own company. Today, U.S. risk management consultants. company, Risk International Hold- it employs 26 and serves more than (Business Insurance is a sister publi- ings Inc., Mr. Davis said. 30 clients. cation of Crain’s Cleveland Business.) “I think that they saw this as an The company, which operates The bulk of the firm’s work is advis- opportunity to raise capital to make other offices in Charlotte, N.C., Sin- ing and consulting clients on how other investments and to really take gapore and London, posts revenues they should cover property and casu- the company forward,” Mr. O’Brien of $4 million to $8 million annually, alty exposures — fires, floods, law- said. “I was flattered to be asked. As depending on the year, Mr. Davis suits and credit losses, to name a few. I told them, I’ve been their No. 1 fan said. Its revenues earned it the No. 3 Mr. O’Brien would not disclose how for a long, long time.” spot in the Business Insurance 2011 much he’s invested in Risk Interna- tional, as did Mr. Davis. Neither Spread the word owns a controlling interest, though Mr. Davis’ goal is to see in the next their pieces are “substantial,” Mr. three to five years any sampling of Davis said. CEOs, chief financial officers and “I think that specialty niche general counsels — client or not —
 insurance businesses have great know Risk International by name. ® potential in the future,” Mr. O’Brien And while the company’s goal is
  said. “There are more and more risk growth, it doesn’t want to grow out A DIVISION OF CUYAHOGA COMMUNITY COLLEGE issues that CEOs and CFOs are of control. Mr. Davis said he’d like looking for help and advice on, (and) to see the company experience there are not many places they can growth that merits hiring between turn to.” 10 and 20 people over the next year. It took some time to enable Mr. He also wants Risk International to O’Brien to invest: Risk International reach $10 million in revenues in the — with the consenting vote of its next several years. employees — did away with the New locations are possible, Mr. employee stock ownership plan Davis added, noting Chicago and that had existed since 2002 so that a Pittsburgh are likely places. Corporate College Presents group of investors, including Mr. “It’ll happen,” he said. “It’s just a O’Brien and Mr. Davis, could buy question of when.” ■

SALT • SALT • SALT • Water Softener Tuesday, March 27 e 7:30 a.m. - 4:30 p.m. • Industrial • Ice Melt • Food Cost: $395 (includes lunch) e CRN: #18446 Call For Pricing!! Minimum Delivery: Bring your business challenges and we will show you a clear, simplified way of looking at 1Pallet the problems and seeing what’s probably already right in front of you – easy, effective solutions. With Disney Institute, you can learn to think differently. Are you ready? 1-800-547-1538 Communicate a compelling vision e Select and hire right-fit employees Salt Distributors Since 1966 Develop a service philosophy e Retain customers for life Create a collaborative culture Volume 33, Number 7 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- Limited seating. Register today. bined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, © Disney the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Corporate College, 4400 Richmond Rd., Warrensville Hts., OH 44128 Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877- O Oììeììwww.corporatecollege.com/disney 824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20120213-NEWS--5-NAT-CCI-CL_-- 2/9/2012 11:36 AM Page 1 20120213-NEWS--6-NAT-CCI-CL_-- 2/10/2012 4:21 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012

spectacular, very cool experience.” Located in the circa-1933 U.S. Post Area companies leave Office and Federal Courthouse, the 41,000-square-foot museum includes TUESDAY, FEBRUARY 21, 2012 about 17,000 square feet of exhibi- mark on Vegas Mob site tion space on three floors, and will 11:30 am Registration • 12 Noon Lunch & Program house artifacts detailing Mob history JOEL PERESMAN TERRY STEWART as well as law enforcement’s role in Moderated By By AMY ANN STOESSEL sary of the St. Valentine’s Day working to eradicate it. LEE JORDAN [email protected] Massacre in Chicago, considered The building itself is on the one of the most significant days in National Register of Historic Places, Two Northeast Ohio firms have Mob history. and its courtroom is famous as the ties to The Mob — but in a good way. Paul Westlake, managing principal site of hearings held in the 1950s to Cleveland architect Westlake Reed of Westlake Reed Leskosky, which expose and control organized crime. Leskosky and content developer specializes in historic preservation “The story of the Mob is a story Barrie Projects both were involved work, said his firm’s Cleveland and of America,” said Kathleen Coakley in the construction and design of Phoenix offices have been working Barrie of Barrie Projects. “Through the new National Museum of Orga- on the project for about five years. the interpretive program of The Mob For more info: www.ExecutiveCaterers.com and click on Corporate Club or call 440.449.0700 nized Crime and Law Enforcement “It’s incredible, just to see it come Museum, visitors will understand in Las Vegas. together,” Mr. Westlake said last where the connections are, how The $42 million downtown museum week from Las Vegas, where he was organized crime, Mob activity, and opens to the public this Tuesday, for the museum’s opening festivi- law enforcement ran parallel and Feb. 14 — fittingly the 83rd anniver- ties. “I think it’s going to be a very then collided at certain points.” ■

MORE CUSTOM REAL ESTATE SOLUTIONS ON THE WEB Story from Credit unions take business www.CrainsCleveland.com. Greg West Negotiated a Radisphere SALE/LEASE back on two lending fight to Washington manufacturing facilities. raises another Limit is too stringent, they tell legislators $10 million By MICHELLE PARK of their assets and has been at that [email protected] level since 1998. Critics argue that Radisphere National the limit inhibits business lending Radiology Group Inc. Three Northeast Ohio credit union when businesses need it most and has raised another $10 executives traveled to Capitol Hill last deters credit unions from seriously million. week to encourage their lawmakers pursuing business lending activities. Three investors provided to back legislation that would enable “There’s no reason to invest in the equity financing, according 9DOOH\9LHZ2KLR &X\DKRJD+HLJKWV2KLR credit unions to do more business ‘machinery’ — in our case, software to a document Radisphere lending. and personnel as well as office space filed on Feb. 6 with the U.S. /HW*UHJ:HVWKHOS\RXZLWK\RXU It’s not the first time local execu- — if I’m only going to be able to make Securities and Exchange Com- tives and representatives from the a couple loans and then, boom, mission. FRPSDQ\¶VUHDOHVWDWHGHPDQGV Ohio Credit Union League traveled reach my cap,” Paul Snyder, one of The company — which is to Washington, D.C., for this pur- those who went to Washington, based in Westport, Conn., *UHJRU\%:HVW though its largest office in is 9LFH3UHVLGHQW pose. This time, though, small busi- D.C., last Wednesday, Feb. 8, said 'LUHFW ness representatives came, too. afterward. Beachwood — aims to raise The issue at hand: Credit unions’ Mr. Snyder is vice president of another $5 million before closing ZZZRVWHQGRUIPRUULVFRP 0DLQ business lending is limited to 12.25% marketing for CSE Federal Credit the investment round, the Union in Canton, which is planning document states. a fourth branch but is not expanding A company official declined to its business lending or related staff provide additional details. because of the cap, Mr. Snyder said. Radisphere, founded in 2001, Proposed legislation would increase provides remote and on-site the cap to 27.5% of assets. radiology services to community Only a handful of the more than hospitals. 100 credit unions in Ohio that lend The company has raised $50 to businesses are close to or quickly million in financing over the past approaching the cap, according to three years. It closed a $27.5 the Ohio Credit Union League. million round in November 2010 MARCUS & MILLICHAP CLEVELAND PROUDLY The current proposed legislation and a $12.5 million round in has twice as many co-sponsors this August 2009. HONORS THE TOP PRODUCERS FOR 2011 go-around than last, credit union — Chuck Soder executives said. ■

Michael Barron Dan Burkons Scott Wiles Craig Fuller Josh Wintermute

National Coverage – Local Expertise has been acquired by How Can We Support Your Strategy in 2012?

To Access the Investment Market, Contact the Market Leader.

Michael L. Glass The undersigned acted as exclusive financial advisor to Vice President/Regional Manager AESCO Electronics, Inc. in this transaction Cleveland Office (216) 264-2000

5005 Rockside Road, Suite 1100 P A R T N E R S L L C Cleveland, OH 44131 For more information, please call (216) 589-0900 or visit www.wesrespartners.com Offices Nationwide www.MarcusMillichap.com 20120213-NEWS--7-NAT-CCI-CL_-- 2/9/2012 3:32 PM Page 1

FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 University of Akron considering renovations to arena

“demolition and construction of a Those recommendations could “For us, it’s the fan amenities School seeking to upgrade seating, improve new arena” if renovation and/or include demolition of the “JAR,” as piece,” Mr. Bach said. “But it’s also, expansion was not “practicable.” it’s affectionately known. what can be done with the space we sight lines and entryway at 28-year-old JAR A University of Akron Department “If the feasibility study were to have?” of Purchasing website shows that indicate the renovation costs were The 125,538-square-foot JAR, By JOEL HAMMOND architect/engineer for “improvements Kansas City-based Populous is the too excessive, then we’d have to which seats 5,500 for basketball, [email protected] at James A. Rhodes” arena. The “Recommended Award Architect” consider demolition and recon- was completed in 1983 as part of a upgrades would include improved for the project. Populous, formerly struction,” Mr. Pearson said. $20.5 million project. According to The University of Akron is con- sight lines, seating revisions, the HOK Sport, designed Jacobs Field Akron’s men’s basketball team the school’s athletics website, the sidering the renovation — or, if that addition of premium seating and — now Progressive Field — in the once again is atop the Mid-American arena was renovated in 2002, with a proves financially unworkable, the improved concessions, ticketing early 1990s and has consulted with Conference, at 9-1 in league play $1.1 million project that included demolition — of its 28-year-old and team facilities. the Cleveland Indians on a recent and 17-7 overall after last Wednesday a new playing surface and video basketball venue, James A. Rhodes The university’s solicitation noted effort to re-envision some of the night’s action. The team has made display. Last summer, team lounges Arena. that solutions to meeting its needs ballpark’s under-used areas, such five postseason appearances in and a new weight room were The university has distributed a “may include renovation and as its luxury suites. the last six years, including two installed. “Request for Qualifications” for an expansion of the existing arena” or Populous lists nine other Major trips to the NCAA tournament. The The project would be the latest in League Baseball stadiums on its Zips lost in the first round each a line of athletic facilities improve- résumé, along with three NBA time. ments by Mid-American Confer- arenas and five NFL stadiums. The Zips average 3,352 fans per ence schools. Akron in 2009 opened Spokeswoman Gina Stingley did game, fifth-best in the 12-team its $61.6 million InfoCision Stadium, not return two calls and an email league. Last season, they drew 2,821 and Kent State in 2008 completed a Cleanup: Potential loan seeking comment. per game, also fifth in the league. $10 million upgrade at its Dix Stadium. David Pearson, the university’s Athletic spokesman Gregg Bach Bowling Green State University associate vice president of capital said his department’s wish list last November opened the doors to structure is concerning planning and architectural services, includes a more accommodating its $36 million Stroh Center, for said the school and Populous are entrance to the arena, an area basketball, volleyball and other continued from PAGE 1 Miceli Dairy Products Inc., used a conducting a feasibility study that currently very cramped, especially campus events, while the University agency. Mark Kvamme, who heads $3 million Clean Ohio grant to cover likely will not be finished until June. for big games such as those against of Toledo in February 2010 opened JobsOhio, said at the time that $43 much of the cost of a $4 million The company will take recommen- neighbor Kent State University. He a $9 million indoor training facility. million of the roughly $100 million cleanup that allowed it to expand its dations both from the capital plan- also said better seating, especially Ball State University, in Muncie, Ind., JobsOhio hopes to have available factory on Cleveland’s East Side. ning department and the athletic in the general admission areas and Northern Illinois University, in for economic development annually “If they had to get a $3 million department on needs and require- where currently there are wooden De Kalb, Ill., in 2007 completed $13 will be targeted to brownfield loan and pay that back, that project ments, then make recommenda- benches, is on the department’s million and $14 million projects, cleanup projects. would have never gone forward,” he tions. radar. respectively. ■ That announcement buoyed local said. “They might have left the city economic development officials for a greenfield (in the country).” and site selection professionals. However, the state has stopped Concern in Cleveland accepting applications for Clean Tracey Nichols, Cleveland’s Ohio money as it migrates the pro- director of economic development, gram to JobsOhio and creates new fears the state under new rules will criteria for it. reject applications that can’t identify “At this point, how the revitaliza- a specific new property owner with tion program will function is under plans to clean up and redevelop a discussion,” Laura Jones, JobsOhio’s property. The city often has used communications director, said last Clean Ohio money to clean up Wednesday, Feb. 8. “We’ve stopped properties without committed end taking (Clean Ohio) applications users so that the properties would and it will be reactivated under be ready for use when prospective JobsOhio on July 1.” buyers or developers come along. Counting the cost “Most companies aren’t going to say, ‘I love that site and I’ll wait two Joseph P. Koncelik, an environ- or three years until you’re done mental attorney with Frantz Ward cleaning it up,’” Ms. Nichols said. LLP of Cleveland and a former The city of Cleveland has made director of the Ohio Environmental particular use of what are called Protection Agency under Gov. Bob assessment grants. That money, up Taft, said he is concerned about the to $300,000 per project, has been interruption in the application available to pay for the testing process. required to identify what, if any, “We’ll lose momentum built up over the last decade. I can’t tell clients if there will be money available for assessments.” – Joseph P. Koncelik, environmental attorney, Frantz Ward LLP

“We’ll lose momentum built up contamination exists on a property over the last decade,” said Mr. Kon- and to obtain an estimate of what celik, who helps client businesses the cleanup will cost. State money navigate the purchase of brownfield for the actual cleanup would come properties. “I can’t tell clients if from what is called the Clean Ohio there will be money available for Revitalization Fund, where grants assessments.” are capped at $3 million. More troubling to economic “We do a lot of assessments and development professionals, though, we may only have a developer” that is the potential impact of changes is interested but not committed to that may be forthcoming in the a site, Ms. Nichols said. “They first Clean Ohio program. want to know, ‘Is it a brownfield or JobsOhio, as described by Gov. isn’t it a brownfield?’ before they Kasich and Mr. Kvamme, would commit any money.” focus on issuing loans rather than The Clean Ohio program has grants and would select projects it been “a vitally important tool and will finance based on a clear and the city has taken great advantage of relatively short-term return on the it,” Ms. Nichols said, noting that state’s investment. Cleveland has won $27 million of Mr. Koncelik is worried that the Clean Ohio money since 2003. Clean Ohio program under JobsOhio “In the city of Cleveland, like only will offer loans and not grants. most urban areas, every single piece “People will not pay the cleanup of property that is zoned commer- costs out of their own pocket,” he cial or industrial has been used at said. “That’s money they don’t have least once,” she said. “So we have to spend if they go to a greenfield.” no greenfields in a zoned commer- Mr. Koncelik said one of his clients, cial area.” ■ 20120213-NEWS--8-NAT-CCI-CL_-- 2/9/2012 4:17 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION So-so so far n his first year as Ohio’s governor, John Kasich was no Ted Strickland. However, he was no Ed FitzGerald, either. Gov. Kasich took a state that by 2010 was Istumbling under former Gov. Strickland and set it on its feet. He rightly could proclaim last Tuesday in his State of the State address, “We’re alive again, we’re out of the ditch.” His team devised a plan for addressing an $8 billion budget deficit that stared the state in the face. Part of that plan involved what the governor described FROM THE PUBLISHER as “reforming and reshaping” government. The crowning reform achievement in Gov. Kasich’s first year was standing up to Ohio’s nursing Shatten’s legacy defies time’s passage home interests, which long had feasted from the state’s Medicaid trough. His administration put an en years ago today, I lost a good work that became the cornerstone of our start their own form of business-fueled emphasis instead on reimbursements for home friend. Worse, we lost one of the city’s first steps toward recovery in the economic redevelopment. health care, which has saved significant dollars. few people I’ve encountered in early ’80s. His report recommended the “Brilliant” was the common adjective However, a big reason Gov. Kasich could boast my decades here that I could creation of a CEO-only volunteer group used to describe Richard by those fortu- Tdescribe as a visionary. that could help redevelop our city and nate enough to know him. I recall our last week that he and the Republican-controlled Legislature were able to eliminate a huge budget Richard Shatten died at 46 from an region. That became Cleveland Tomorrow, regular lunch and breakfast meetings as gap without a tax increase is because they pushed a inoperable brain tumor. He left behind and for many years Richard served as its bites of food and intermittent sips of lot of the state’s problem down to the local level. his beloved wife and two daughters, and executive director. coffee punctuated by a rapid-fire stream a hole in our collective heart and mind I will never forget the first time I met of observations and ideas. Just as much Elected officials in Columbus last summer reduced that never could be filled ade- Richard. We were at a Cleveland as his intellect, I enjoyed his wit and that state support to cities and school districts. Local quately. BRIAN Tomorrow news conference in half-smile that always had an ever-so- leaders were left to deal with their budget chal- His was the ultimate story of TUCKER the offices of Eaton Corp., whose slightly hint of mischievousness about it. lenges, though the governor promised to help them brain gain, as Richard came back then-CEO, Del de Windt, served He left Cleveland Tomorrow to head on the expense side of the ledger. How? By passing home after earning his under- as the group’s chair. True to the Mandel family trust’s philanthropic a bill that would cap what public employers must graduate and graduate degrees form, Richard stayed in the efforts and also joined the Center for pay in the way of pension and benefit costs under from Harvard. He landed, quite background. He never sought Regional Economic Issues, a regional collective bargaining agreements with their union- logically, at the Cleveland office the limelight, and he was in my think tank, at Case Western Reserve ized employees. of consulting giant McKinsey & estimation the ultimate ser- University’s Weatherhead School of vant-leader. Management. Both organizations were Here is where Gov. Kasich and Mr. FitzGerald — Co. In a story in Crain’s in 2000, Richard described the Cleve- In 2010, Crain’s published its made better by his involvement. two reformers — part company. land to which he returned. 30th anniversary edition, high- I believe if he were alive today, Richard Mr. FitzGerald took a measured approach to “This was a community that wasn’t lighting several people who reshaped would be both encouraged and troubled pursuing his agenda in Year One as Cuyahoga about renewal,” he told us. “There wasn’t our region. Of course, Richard’s profile by what he sees in our city and region. County’s first solo executive. His team worked hard a strategy. And there wasn’t hope.” was included. Jay Miller, one of our Much as he urged the folks in Syracuse, to create an open and efficient government as it But not for long. Richard was part of veteran reporters, wrote about how busi- he might tell our leaders to work together sought to restore the public’s trust amid a federal the McKinsey team dedicated to helping ness and civic leaders in Syracuse, N.Y., to make our city the capital of the region, corruption investigation in Cuyahoga County. Mr. Cleveland pull itself up by the boot- still were praising Richard three years and our region the driving force in the ■ FitzGerald waited until his administration had straps. He did much of the consulting after he first traveled there to help them next stage of Ohio history. earned its stripes before he unveiled his master plan two weeks ago to make the county a central provider of services to cities within its borders. LETTERS In short, Mr. FitzGerald underpromised and overdelivered. Gov. Kasich, by contrast, overpromised and underdelivered. Local taxes already collected effectively In his first State of the State address last March, Gov. Kasich said, “If you think you’ve seen a lot of ■ This letter is in response to the Feb. collaboration accomplished through refund requests in a timely fashion. change in the first seven weeks, you ain’t seen 6 letter to the editor, “State hurt by shared services. Between the two agencies, Local communities currently collabo- nothing yet. We’re going to transform this state.” disparate tax collection methods,” by 246 municipalities participate. These rate with the regional collection agencies William C. Ferry. agencies have more than 40 years of to provide efficient service in collection, But when it came to the transformational issue of The primary source of funding for expertise in collection of municipal reporting and compliance efforts. This is collective bargaining reform, the governor and his Ohio municipalities is the local income income taxes. critical for budgeting, forecasting and cohorts blew it. They passed a bill so odious that tax. Cities and villages depend on this tax Municipalities currently receive their revenue sharing with schools or busi- Ohioans killed it last fall in a referendum by a 61%- revenue to provide basic local services. tax collections on a monthly or semi- nesses. Local leaders strongly believe that to-39% vote. With recent dramatic reductions in the monthly basis. The state distributes the a state-centralized collection process Gov. Kasich uttered not one word about collective state’s Local Government Fund and the School Municipal Income tax and other will not provide even near the level of bargaining in his 85 minutes on stage last week. virtual elimination of property tax state-collected taxes on a quarterly basis. service. Whether the omission signifies that reform is dead replacement funds, these local municipal This will result in many municipalities Through a variety of tested methods or whether he’s simply waiting before readdressing income taxes have become more vital. issuing short-term debt while waiting to including non-filer subpoena programs, the issue, only time will reveal. In the meantime, he Municipalities collect these local taxes collect income tax. non-payer small claims and civil case in an efficient and effective manner. While As a result of years of expertise, work, and IRS data to pursue non-filers deserves credit for putting the derailed train that some still “self collect,” many municipal- regional collection agencies currently and under-reporters, local governments was Ohio government back on the tracks. It’s too ities participate in regional tax collection provide immediate access to records. have worked to institute effective bad he didn’t heed the warning signals that his agencies. The Regional Income Tax The state will likely not be equipped to compliance efforts. The state’s track engine was going way too fast. Agency and the Central Collection Agency provide municipalities copies of paper record in this regard is average at best. are two excellent examples of regional returns, W-2s, supporting schedules and See LETTERS Page 9 20120213-NEWS--9-NAT-CCI-CL_-- 2/9/2012 3:00 PM Page 1

FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 THE BIG ISSUE Student loan struggles Do you agree with Gov. John Kasich’s assessment that the state of Ohio is “alive again” and “out of the ditch?” could be ‘next debt bomb’ By LIZ SKINNER Obama is proposing a plan to offer Investment News incentives to colleges and states to make higher education more afford- More Americans are seeking help able, including reforms that would to pay off their share of the nation’s boost campus-based federal aid at $1 trillion in student loans, setting schools with policies that aim to up a debt crunch reminiscent of the keep tuition costs under control. nation’s debilitating mortgage crisis, Bankruptcy attorneys report lawyers say. anecdotally that they see more In a survey of bankruptcy attorneys, consumers seeking help with their about half reported a substantial unmanageable student loan burden increase in the past three to four years and finding little relief. Those JOSEPH BILEK DAVE CLAWSON PATRICIA DIFRANCO LAWRENCE BUTLER in potential clients with student conditions are disturbingly similar Doylestown Cleveland Highland Heights Cleveland loan debt. What’s more, fully 95% of to what they saw before the nation’s I don’t think that. The Not entirely. I’d say we’re I feel more optimistic, at I would agree to some the lawyers said few of these debtors foreclosure crisis. Because they are market is still depressed. starting to get out of the least about Cleveland. … I extent. We’ve got some have a chance of seeing their loans repaying student loans, these They’re demolishing ditch, but we’re not nearly feel Cleveland is growing. good sources of monies discharged by the courts or lenders, debtors won’t be able to “engage in houses. There are people out yet. There’s lots of construction coming our way now, the National Association of Con- the consumer spending” that the that are homeless. and development. especially with the casino. sumer Bankruptcy Attorneys said. economy needs to grow, said John “This could very well be the next Rao, vice president of National Asso- debt bomb for the U.S. economy,” ciation of Consumer Bankruptcy ➤➤ said William Brewer, president of Attorneys and an attorney with the Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com. the association. “Students and workers National Consumer Law Center. seeking retraining are borrowing Student loans “will be a drag on extraordinary amounts of money the economy for the foreseeable through federal and private loan future,” Mr. Rao said. LETTERS programs to help cover the rising The student loan default rate rose continued from PAGE 8 Collection, administration, auditing hazardous to health, producing all cost of college and training.” to nearly 9% for a two-year period Unpaid balances perpetually exist and constituent services on the sorts of evil consequences, and second- College seniors who graduated in that ended in 2010, up from 7% the with deregulated utility companies local level have worked. In addition, hand smoke is harmful even to non- 2010 with student loans owed an previous period. and School District Income Tax efforts to centralize these services smokers. I venture members of the average $25,250, a 5% increase from Federal student loans provide collections. put local governments at enormous arts community would agree, because 2009 graduates. Parents of 2010 borrowers a fixed, low-interest rate The state of Ohio has already risk. Each community has established smoking is forbidden at all their graduates owed an average of with low fees and multiple repayment created the Ohio Business Gateway, tax rates, credit rates and credit venues. Yet the arts community is $34,000, the association said, based options. However, most bankruptcy which provides businesses the limits based on specific needs to apparently banking on thousands of on an Institute for College Access courts are “very restrictive” in deter- ability to file and pay municipal that community. Attempts to stan- addicted smokers to keep on ruining and Success report. mining whether a student borrower income taxes by submitting one dardize tax rates and credit limits their health so the arts community What’s more, the number of qualifies for a discharge, and there return and one payment through the would fiscally paralyze many of our can draw funding from smokers’ parents forced to go into debt to help is no statute of limitations for the gateway. However, most businesses communities. addiction. pay for their kids’ schooling also is government to pursue debtors, Mr. increasing. In 2010, about 17% of Rao said. continue to file locally. Mayor Georgine Welo Does this strike anyone else as the parents with students graduating Bankruptcy attorneys would like Less than 4% of business forms South Euclid macabre? Hypocritical? Cynical? Elitist? from college that year took out to see student loan debts be eligible directed to the Regional Income Tax President Bizarre? Schizophrenic? A morally loans. In 1993, only 5.6% did so. for discharge through bankruptcy Agency and less than 2% of those Cuyahoga County Mayors and corrupt policy? Americans owe more on student proceedings, which was the case directed with the Central Collection Managers Association Agency are filed through the Ohio Michael B. Smith loans than credit cards, according before congressional changes begin- Business Gateway. Akron to government data. President Barack ning in 1976. ■ Technical problems with the ‘Elitist’ arts tax Ohio Business Gateway files have ■ Your Jan. 23 issue featured a Page caused delays in the processing of tax One story on the desire of arts orga- returns and delays in the distribu- nizations to continue to draw financial tion of tax dollars to municipalities. support from the “sin tax” on ciga- Ohio Business Gateway cannot rettes. I believe a tax on cigarettes accept reconciliations of income tax also was used to build a new football withheld, W-2 bulk withholding stadium on the lakefront (which uploads, filings from sole propri- would be nice, if anything worth- etorships, consolidated filers, busi- while happened there). nesses not using apportionment, Is there a moral dilemma with pass-through entities reporting income arts organizations wanting money Stick. on behalf of partners or shareholders, from a cigarette tax? and short-year returns. Smoking is supposed to be Without the Sticky. “ It was just www.uakron.edu/innovation one simple question. ‘ Can you help me?’” Kirk Zehnder President and CEO Earnest Machine 95 employees

INTERESTED? CALL TODAY, 440 575-7000 ~OR~ FOR MORE FROM OTHER COMPANIES VISIT WWW.SALESCONCEPTSINC.COM SELL MORE. 20120213-NEWS--10-NAT-CCI-CL_-- 2/10/2012 5:02 PM Page 1 20120213-NEWS--11-NAT-CCI-CL_-- 2/10/2012 5:03 PM Page 1 20120213-NEWS--12-NAT-CCI-CL_-- 2/9/2012 3:08 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012

GOING PLACES JOB CHANGES Melissa Beaver to tax associate; Amy S. McDonald to office adminis- ARCHITECTURE tration and marketing. S. ROSE CO.: Debbie Coakley to KPMG LLP: Susan McBride to director of architecture and design principal. relations. TRINITY PENSION CONSULTANTS: McBride Chojnacki Sotera Adam Warren to director, finance FINANCE and operations. FEDERAL RESERVE BANK OF CLEVELAND: Jason Tarnowski to LEGAL assistant vice president, supervision BAKER & HOSTETLER LLP: and regulation; Carolyn Williams to Michael K. Gall, David E. Kitchen, assistant vice president, law enforce- Patrick T. Lewis and David F. ment. Proano to partners. OHIO COMMERCE BANK: Valerie DREYFUSS WILLIAMS & ASSOCIATES Kerstetter Coakley Glaser A. Lehman to loan quality specialist. LPA: Benjamin G. Chojnacki to associate. FINANCIAL SERVICE MCCARTHY, LEBIT, CRYSTAL & BCG & CO.: J. Dustin Sheppard to LIFFMAN CO. LPA: Jim Schuster tax manager; Pam Wright to senior to principal; Kaitlyn D. Arthurs to manager; Ben Austin to senior asso- associate. ciate; Brian Schreffler and Jason WESTON HURD LLP: Mary C. Winchell to supervisors; Dustin Sotera to partner. Bormet to tax para-professional; Spencer Mullin Smith Katie Mayes to associate. MANUFACTURING FIRSTCREDIT INC.: Mike Tanker CHART INDUSTRIES: Brent Philo to TECHNOLOGY to collections manager; Michelle vice president of taxation. Lingenhoel to client support and AZTEK: Brent Ponstingle and commercial insurance billing specialists; MARKETING Martin Gray to business development; Elliott Taylor, Kim Morehead, Tori Woods to content strategist; SONNHALTER: Rachel Kerstetter Francis Lane-Jackson and Chelsea Nedim Nisic to interactive marketing to public relations engineer. Bernard to patient account managers. specialist; Christine Hall to inside sales manager. J. HONSBERGER & CO. CPAs: NONPROFIT BCG SYSTEMS INC.: Cliff Wallace LEADERSHIP LAKE COUNTY: to manager, development services; Jessie G. Baginski to executive Geoff Whidden to manager, networking director. services; Josh Branch to supervisor, UNIVERSITY SETTLEMENT: Derrick networking services. S. Fulton to executive director. MCPC INC.: Shawn O’Leary to account manager. REAL ESTATE POLYCOM INC.: Joanne Montz to CBRE INC.: Conor Coakley to senior enterprise account executive, associate. Ohio. In business, SERVICE BOARDS HUMAN ARC: Robert W. Glaser ROCKY RIVER CHAMBER OF every connection matters. to senior executive vice president, COMMERCE: Paul Hvizda (Admiral operations; Jill Spencer to executive Products) to chairman; Cliff Obrock, vice president, business development Bill Ferry, Debra Bernard and and client relations; Stephen J. Ellen Todia to vice chairmen; Mike Mullin to corporate director, marketing Trifiletti to treasurer; Rusty Deane EVERY UPLOAD. and product development; John Smith to secretary. to director, quality and continuous improvement. AWARDS EVERY DOWNLOAD. KELLY SERVICES INC.: Abby Barritt INSTITUTE OF REAL ESTATE to partnered staffing coordinator; MANAGEMENT, NORTHERN OHIO Anita Kacher to staffing supervisor. CHAPTER: Brant Smith (Lake Erie PARTNERSHIP LLC: Scott Frederick Real Estate Co.) received the 2011 to marketing director. Certified Property Manager of the Year PRINCETONONE: Mike Rocky to Award. senior manager. WIZARD OF AHS: Stephanie Stiggers- Send information for Going Places to Smith to vice president, sales. [email protected].

Get BRIGHT SPOTS

Business Bright Spots is a periodic feature in graduate of Butler University who Voice & Internet Crain’s highlighting positive business has worked at Goelzer Investment for only developments. Submit information to Banking in Indianapolis and at Scott Suttell at [email protected] GBQ Partners in Columbus. ■ Improv Electronics, the con- ■ Investment banking sumer products subsidiary of Kent firm Western Reserve Displays Inc. of Kent, reported it $79 Partners of Cleveland attracted lots of attention at the per month!* has launched a new unit, International Consumer Electronics Western Reserve Valu- Show in Las Vegas last month. WE’RE THERE, BECAUSE EVERY CONNECTION MATTERS. ation Services LLC, which The company had five hands-on is based in Columbus. demonstration stations for Boogie We’re there with reliable Cox Business Internet,SM VoiceManager and TV. The new unit “will focus Board e-writers during CES, which Because every connection matters, and so does your bottom line. exclusively on offering valuation ran Jan. 10-13. Boogie Boards are services and financial opinions electronic alternatives to paper and Call 1-866-791-2688 or visit us at coxbusiness.com and connect with Cox today. relating to corporate finance trans- pens that use the company’s “Reflex actions, corporate tax planning and No Power LCDs” as their writing

*Offer valid until 4/1/12 to new commercial subscribers of Cox Business InternetSM and/or Cox Business VoiceManagerSM serviceable locations. Minimum 2-year service contract required. Offer includes compliance, succession planning and drawing surface. monthly service fees for the first 24 months of Cox Business Internet with download/upload speeds of 6 Mbps/2 Mbps, 1 Cox Business Basic VoiceManager with Cox Service Assurance Plan and Unlimited Long Distance). Discounted Phone line, Cox Service Assurance and Unlimited calling plan may be extended up to 8 lines (excludes usage, long distance, Voice Mail and features). Offer does not include and wealth preservation, employee Dr. Albert Green, CEO of Kent installation, construction, inside wiring, usage, equipment, applicable taxes, surcharges or fees. Telephone modem equipment is required. Modem uses electrical power to operate and has backup battery Displays/Improv Electronics, said power provided by Cox if electricity is interrupted. Telephone service, including access to e911 service, will not be available during an extended power outage or if modem is moved or inoperable. Telephone stock ownership plans, financial services are provided by Cox Connecticut Telcom, LLC. Cox cannot guarantee uninterrupted or error-free Internet service or the speed of your service. Actual speeds vary. Rates and bandwidth options vary reporting and portfolio/fund valua- more than 10,000 media members and are subject to change. Discounts are not valid in combination with or in addition to other promotions and cannot be applied to any other Cox account. Services not available in all areas. Other restrictions apply. ©2012 CoxCom, Inc., d/b/a Cox Communications New England. All rights reserved. tions,” Western Reserve Partners said. worldwide “requested or reviewed the The unit will be led by Robert M. Boogie Board e-writer online press Stutz II, managing director. He’s a kit distributed through the event.” 20120213-NEWS--13-NAT-CCI-CL_-- 2/9/2012 3:00 PM Page 1

FEBRUARY 13 - 19, 2012 CRAIN’S CLEVELAND BUSINESS 13

INSIDE 14 TAX TIPS: IRS CLARIFIES REPAIR DEDUCTIONS. SMALL BUSINESS IN BRIEF ■ HITTING THE BOOKS: Pat A QUICK CALL TO ACTION O’Donnell, who has more than 12 years of experience in higher education, has started a nonprofit in Mentor that works with families and students to If executed properly, popular improve college success and afford- ability. Higher Education Consumers QR codes offer companies Resource LLC, www.highereducation consumersresource.org, offers the another messaging tool following products and services: Free Application for Federal Student Aid preparation; cost of attendance advising; By CHUCK SODER scholarship search and support; test [email protected] preparation; tutoring; special services for nursing students; career and f J. Paige Boyer sees a QR code, degree selection assessments; and there’s a good chance she’ll scan it services for the re-entry college with her smart phone just to see student. what will happen. ISometimes, though, what happens isn’t all that great. For instance, a lot of ■ LOOKIN’ GOOD: La Look Skin- QR codes — more formally known as care & Makeup Boutique, owned by quick response codes — will send her to Martha Vucsko, has opened in a website that looks bad on a small Chagrin Falls’ Step North development screen. Or she’ll end up on a company’s on North Main Street. La Look’s services home page when she wanted something include age-defying and multiderm facials, more specific. body treatments and massages, a She’s also seen QR codes that she waxing bar, makeup applications, mani- didn’t scan at all because they were in a cures and pedicures, personal training bad location — like the time she saw and airbrush tanning. Additionally, a one on the side of a building, down by range of boutique products are sold, the sidewalk — or because they were including brands such as Vagheggi, printed on a material that made it hard Principessa Beauty, The Balm and for her phone to recognize the code. LaLicious. Boutique hours are 9 a.m. Even so, Ms. Boyer, a social media to 6 p.m. Tuesday; 9 a.m. to 8 p.m. specialist at Goldstein Group Communi- Wednesday and Thursday; 9 a.m. to 6 cations Inc. in Solon, can’t help but love p.m. Friday; and 9 a.m. to 4 p.m. those little squares. When done right, Saturday. she can scan one and spring into digital action: Buy a product, get a coupon, watch a video, donate money, etc. ■ NOTHING TO BARK AT: Inn the Any business or organization thinking Scan me for more Crain’s small business coverage! Doghouse, a 9-year-old pet day care about using a QR code should think of it and boarding business on Berea Road as a tool that leads to action, Ms. Boyer Taking cues from the social media experts interviewed for this story by Crain’s in Cleveland, will be moving into a said. reporter Chuck Soder, the above QR code will take you directly to a mobile-friendly larger facility at 1548 W. 117th St. this “Think about what it is that you want version of Crain’s in-depth small business coverage on www.CrainsCleveland.com. spring. General manager Lon Camp your customer to do,” she said. And speaking of that small business coverage, Crain’s distributes a weekly Small said the new space will allow an array In Northeast Ohio, there are plenty of Business email, sponsored by COSE, every Thursday morning. To register for that of improvements including expanded email, and other Crain’s email newsletters — yep, you guessed it! — scan the smaller grooming and boarding services, the See ACTION Page 15 QR code at right. addition of upscale pet suites and four cat boarding spaces. “We did out- grow this space,” Mr. WHAT IS A QR CODE? QR CODES BY THE NUMBERS Camp said. “Our business HOW DO I GET ONE? An October survey of 1,228 consumers by Boston-based Chadwick Martin Bailey, “CMB Consumer Pulse,” keeps growing focused on current QR code trends. Below are some survey results showing consumer attitudes. by double Quick response codes are two- You can download the full report by scanning the QR code at right. digits every year.” dimensional images that, among Don’t have a QR code reader? other things, allow companies to more Follow our handy instructions at left! directly target their advertising. ■ A HEALTHY MOVE: Direct Smart phone users are able to scan Recruiters Inc. in Solon has launched the codes — on a direct mailer, for What did you do with the information you received How useful did you find the information a sister company, Direct Consulting instance, or in after you scanned the QR code? you received after scanning a QR code? Associates. DCA will offer a variety of a newspaper (Respondents could choose more than one answer) health care IT consulting and staffing ad — and be solutions, including electronic medical taken to a record and electronic health record specific page staffing, staff augmentation and tempo- a company rary-to-permanent placements for wants him or health care facilities in Northeast Ohio and across the country.

her to see, I did nothing such as a product or Mixed

details for an Useful ■ GRAND OPENINGS: To submit a upcoming new business for listing in an upcoming event. small business section, send the To down- following by email to Amy Ann Stoessel

load a QR code reader, smart phone I shared the information at [email protected]: business

Not useful I made a purchase users simply can access their app 57% name; address; city and ZIP; website; 42%

store — i.e., iTunes on an iPhone — 41% brief description of business; business 7% Other and search “QR Code Reader.” phone number; business fax number;

Multiple options will show up, both 21% business email address; and date that 18% 18% free and those requiring purchase. business opened. 20120213-NEWS--14-NAT-CCI-CL_-- 2/9/2012 3:03 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012 SMALL BUSINESS ‘Dagwood sandwich’ MARKFILIPPELL IRS delivers regulations can make M&A sense governing deductions Sellers now must expect financing other than cash for tangible property efore The Great Recession carefully check the recipe to minimize ADVISER restricted profits and the chances of getting indigestion. tightened lending, buyers The base ingredient in a consid- Temporary rules work most to clarify repairs often could pay full value eration sandwich is cash or mar- relatively short duration and they Bfor acquisitions and secure the ketable stock. Cash is clearly the pay an attractive interest rate, then he IRS has issued long- financing to pay in cash. ultimate in liquidity. they might be palatable. awaited temporary regula- CARLGRASSI However, many companies still Almost as good is marketable Over the course of the 350 M&A tions that provide guidance are recovering, crimping their stock; turning it into cash just transactions my partners and I have on the deductibility of market sale values. Furthermore, requires a call to a stockbroker. handled, we have seen the full Tamounts paid to acquire, produce financing is not as available as it Stock can have the additional range of seller notes. or improve tangible property. was pre-2008. Therefore, in order to benefit of postponing taxes if the Some have been so delectable The scope of these regulations is attain full values, sellers may have acquisition is structured as a stock- that the seller could immediately very broad, addressing issues ranging to accept a portion of the sale price for-stock transaction. Volumes are sell them at par to a financial insti- from the definition of materials and in something other than cash. written on measuring a stock’s tution. Others have paid out little or supplies to rules regarding the capi- This can make their consideration liquidity and securing effective nothing when the purchaser could talization of expenses incurred in TAX TIPS resemble a “Dagwood sandwich.” registration rights, both of which not manage the business. acquiring property. Significantly, (For those who don’t read are necessary to make Sellers should learn from Dagwood, these regulations provide guidance and replacement of parts with com- the comics, Blondie’s stock certificates mar- who does not consider all the on when repair expenses can be parable and commercially available husband, Dagwood, is ketable into cash. “non-roast beef” items in his refrig- deducted currently. and reasonable replacement parts. known for his convoluted, What if the buyer erator to be equal. In general, costs are currently The taxpayer must anticipate multi-layered sandwiches.) cannot make the math Other common forms of deferred deductible as a repair expense if performing the activity more than What are the ingredients work to pay the pur- payment are consulting contracts they are incidental in nature and do once during the useful life of the in the Dagwood sand- chase price using only and continued insurance. How not materially add to the value of property in order for the activity to wiches of consideration cash? Then the next valuable these are depends on the the property or appreciably prolong be considered maintenance. Factors that sellers are asked to logical step is the certainty that the buyer is going to its useful life. Expenses must be to consider include the recurring digest? In addition to addition of deferred make the payments and what the capitalized if they are for permanent nature of the activity, industry cash or marketable stock payments such as seller seller will have to do to earn them. improvements that increase the practice, manufacturer’s recom- of the acquirer, they notes — sort of like Sometimes the seller merely has to value of the property, restore its mendations and the taxpayer’s often include items when Dagwood runs cash his quarterly check; in other value or use, substantially prolong experience. such as seller notes, out of prime roast beef, cases sellers have to devote sub- its useful life or adapt it to a new or In addition to providing specific earn-outs, consulting so he adds a layer of stantial time, only to learn the buyer different use. guidance on deductibility issues, agreements, insurance liverwurst. is unable to pay. Many tests have been set forth the regulations address other benefits and some Although the seller When sellers forecast a material over the years by courts and the IRS fundamental issues that must be continuing ownership or notes will be subordinated improvement in financial results, as to whether a repair-type expense considered when determining stock options in the business being to the buyer’s bank debt, they may some form of contingent payment was currently deductible. Because whether a particular expense can sold. be structured to be relatively safe, or earn-out is a logical answer. If these tests generally were very fact be deducted. For instance, the The end result may be more meeting senior debt credit standards the company prospers, the earn-out specific, the IRS has issued several application of many of the rules appetizing than a more modest, of a few years ago. will succeed; if it runs into problems, sets of proposed regulations over on deductibility depends on what straight-forward cash deal would If the seller has committed it won’t. While some earn-outs the last six years, each of which constitutes a unit of property. have been. But the seller must substantial equity, the notes are of work perfectly, fully paying out, attempted to provide more specific The larger the unit of property, others become blueprints for litiga- guidance in this area. the more likely it is that expenses tion. What if the company almost The recently issued regulations incurred in connection with reaches its earn-out targets? retain many of the concepts set maintaining such property can be What if management incurs forth in regulations that were issued deductible, so that work done on worthwhile development expenses in 2008, but they provide additional the engine of a locomotive is less Make this that reduce short-term profits? guidance and many examples. likely to be deductible as a repair if What if the new owner just isn’t Although the new regulations the unit of property is the engine as your year of good at running the business? address many issues relating to the opposed to the entire locomotive. Earn-outs are like an exotic condi- acquisition and maintenance of The new regulations make it ment that has the potential to add property, they deal at length with clear that for most tangible personal spice to Dagwood’s sandwich, but the treatment of repair costs. property, all of the components that Financial might also result in a trip to the For example, repairs made to a are functionally interdependent are emergency room. property at the time of a general considered a single unit of property, Sometimes retaining a minority plan of renovation or rehabilitation even if the taxpayer assigns different equity position or receiving stock of that property generally had to be useful lives to the components for Improvement! options in the acquiring entity can capitalized under the prior rules. financial accounting purposes. be the final layer to complete the The new regulations allow for the In the example above, the engine deduction of indirect costs that do and the locomotive are functionally What would bring financial improvement to your business seller’s consideration sandwich. In these cases, the seller is betting on not directly benefit and are not interdependent, so both would be and help you sleep at night? two things: that the buyer will incurred by reason of the improve- considered a single unit of property. successfully manage the business ment, even when the repairs are Notwithstanding this rule, compo- ÊÊÊÊUÊ>ÊVœ““iÀVˆ>Êˆ˜iʜvÊVÀi`ˆÌ¶ and that some route to stock liquidity made at the same time as the reno- nents that are treated as being a will result. Good luck! This is like vation. different class of property for tax ÊÊÊÊUÊ>ÊVœ““iÀVˆ>Êœ>˜¶ lettuce — filling, but void of taste or So, for instance, while an engine depreciation purposes must be ÊÊÊÊUÊVœ˜ÃՏÌ>̈œ˜ÊvÀœ“Ê>Ê«iÀܘ>ÊL>˜ŽiÀ¶ caloric content. overhaul would normally have to be treated as separate unit of property. ÊÊÊÊUÊi>ÃÞʓiÀV >˜ÌÊV>«ÌÕÀiÊ«ÀœViÃȘ}¶ Many sellers turn up their noses capitalized, engine repairs that These regulations are full of at the thought of consuming the were not necessary as part of the examples and will be helpful in financial cousin to Dagwood’s overhaul but done at the same time providing guidance to taxpayers in 7iÊ`œÊÜ >ÌiÛiÀʈÌÊÌ>ŽiÃÊ̜ʈ“«ÀœÛiÊޜÕÀÊw˜>˜ViÃ°Ê culinary masterpiece. However, could be deducted. an area that has been the subject How Can We Help? consider that no less a businessman The regulations also provide a of IRS disputes for decades. A than Andrew Carnegie sold his steel safe harbor for routine maintenance. review of these rules may provide company for — you guessed it — Under this safe harbor, costs additional tax savings for your busi- seller notes! incurred with respect to routine ness. If America’s richest man in 1900 maintenance on property that is The regulations are effective for would accept noncash ingredients, not a building or structural compo- tax years that begin on or after Jan. today’s sellers should keep an open nent are generally treated as 1, 2012. A change to conform to The Middlefield mind toward selectively consuming deductible. these regulations will be considered the same. ■ Routine maintenance is defined a change in accounting method, Banking Company in the regulations as a recurring although the IRS will provide Mr. Filippell is a managing director activity that a taxpayer expects to procedures allowing businesses to nnn‡n䣇£ÈÈÈÊUÊÜÜÜ°“ˆ``iwi`L>˜Ž°Vœ“ at Western Reserve Partners LLC. perform as a result of the use of the obtain automatic consent to the He is the author of “Mergers & property to keep it in its ordinarily change. ■ ˆ``iwi`ÊUÊ >À`œ˜ÊUÊ iÜLÕÀÞÊUÊ"ÀÜiÊUÊ >˜ÌÕ>ÊUÊ>ÀÀiÌÌÃۈiÊUÊ œÀ̏>˜` Acquisitions Playbook: Lessons efficient operating condition. from the Middle-Market Trenches,” Examples include inspection, Mr. Grassi is president of McDonald published by John Wiley & Sons Inc. cleaning and testing of equipment Hopkins LLC. 20120213-NEWS--15-NAT-CCI-CL_-- 2/10/2012 3:11 PM Page 1

FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 SMALL BUSINESS

Your monthly guide to getting GETTINGAHEAD to the next level in your career. Action: Companies like codes’ versatility

continued from PAGE 13 Passers-by who scan them are saw your video from the QR code examples of companies and orga- directed to an online profile of the on the back of your business card. nizations doing it right, according company, said Gina Morris, director That was really cool,’” he said. Connecting: Colleges to Ms. Boyer and a few other of marketing and public relations. marketing professionals. The Downtown Cleveland Constructive advice Like Ms. Boyer, Melissa Carney Alliance now is making a bigger bet Some companies print the offer long-term resource — a public relations account super- on QR codes: The group is preparing codes on their products as a way of visor with the Cleveland office of to put them on print ads, sidewalk helping customers find instructions Fahlgren Mortine of Columbus — kiosks, storefronts and cards that on how to use them or troubleshoot By AMY ANN STOESSEL familiar resources at one’s former describes herself as a QR code nerd. will go on tables at the 40-plus problems. GoPro Construction [email protected] school can help a person ease into One of her favorites is the giant QR restaurants offering deals during Solutions of Cleveland has plans the job search process or dip their code on the storefront of North Coast the group’s annual Restaurant later this year to put QR code ollege officials want their toes into networking with fellow Wine & Beer at West 117th Street Week, which begins Feb. 27. The stickers on bracing devices that graduates to know this: graduates, students and professors. and Madison Avenue in Lakewood. code will lead people to a website the company developed to simplify Their institutions have “Everyone knows networking is Those who scan it can see the store’s where they can register for a the process of building stairs. The more to offer than just a the most important part of the job monthly specials, Ms. Carney said. chance to win $1,200 in gift certifi- codes — which already are on the Cdegree for use in the real world. search,” Ms. Aungst said. JCU QR codes are a great way to offer cates to 12 downtown restaurants. company’s promotional materials Alma maters can be a resource offers its graduates a variety of coupons or tell customers about The organization is hoping the — lead builders to information for building connections, as well as career services, including what’s deals, so long as the code is removed QR codes will make it easier for about GoPro products as well as a place to go for job search help, known as the Blue Streak Job Club before they expire, she said. people to register online, which an online calculator designed to career advising and networking. and Carroll Contacts. They also can be used to connect will be more important this year: help them do the job, said Paul “It’s a two-way street,” said Rick The job club meets once a month customers or other stakeholders with The group no longer will be having Siegel, vice president of sales. Sherlock, director of Cuyahoga to discuss job search strategies and additional information, she said. restaurants hand out entry forms. Though there are plenty of good Community College’s Alumni & is limited to 12 alumni participants, She described how Fahlgren Though the paper entry forms ways to use QR codes, the practice Friends Association. “We’re really while Carroll Contacts uses Mortine helped the vinyl roofing were effective — 12,000 people of scanning them has yet to catch a lifelong partner with you.” LinkedIn to connect graduates. division of the Chemical Fabrics registered last year — using QR on broadly in the United States. Mr. Sherlock said his school Martin Jaffe, a career counselor and Film Association of Cleveland codes and online forms should Only half of U.S. adults who own started researching about a year for the Jewish Family Services place a QR code in a print advertise- have its advantages, Ms. Morris said. smart phones ever have scanned a ago ways to better connect its Association, said social media sites ment that questioned the reliability “It’s a lot greener. It’s more cost QR code, according to an online alumni. There had been no existing like LinkedIn also can help a of roofs made from a competing effective. It’s really embracing the survey of 1,228 adults that market network in place to maintain con- person take advantage of college material, thermoplastic polyolefin, digital age,” she said. research and consulting firm nections between former students connections. or TPO. The QR code directed Some companies put QR codes Chad-wick Martin Bailey of Boston and the school. “We’re trying to be “It’s made everything electroni- readers to research supporting the on their business cards as a way to conducted in October 2011. as active as a four-year school cally so easy to access,” he said. association’s argument. deliver contact information directly Organizations should consider would be,” he said. And when you have a college Thus, the web page became an into other people’s phones. Staffing using QR codes only if they have a Judith Aungst, the assistant in common, Mr. Jaffe said, “It extension of the print ad, she said. firm Alliance Solutions Group LLC fairly tech-savvy audience, said director of the Center for Career gives you some measure of “It mirrors the look of the ad, and puts a different twist on it: The codes Michael Schwabe, an account man- Services at John Carroll University, background and commonality it continues the discussion,” she said. on their business cards take you to ager at thunder::tech of Cleveland. stressed that the comfort level and with someone.” ■ a video profile of that staff member. Mr. Schwabe is a fan of codes On-the-go getters President and CEO Aaron that get consumers to start conver- QR codes can be a good way for Grossman said the codes have sations on social media sites, or FOLLOW THE LEADER: A Q&A companies to reach people on the been a great conversation piece those that lead consumers to a go. For instance, the Downtown and have helped people get to game or something fun. making enterprise. There DR. MARK DUNLAP Cleveland Alliance helps member know him and his employees. “Once you get them to scan that was a quote there about his Director, heart failure organizations create QR codes that “Last year I had a lot of people code, you can take them almost pride in being called “nail section they can display in their windows. call me afterward and say, ‘I just anywhere you want to,” he said. ■ MetroHealth Heart maker,” which he likened to & Vascular Center the title of nobility for someone in Europe. Imag- ccording to Dr. ine that — one of the most Mark Dunlap, di- influential figures in all of rector of the heart American history, and he failure section at Metro- was most proud of his nail making. HealthA Heart & Vascular Center, ■ What skill do you wish you more than 5 million Americans had? I would love to be able to have heart failure. But a research sight-read music well enough to sit STRATEGIC consortium consisting of the down at the piano and just play. Cleveland Clinic, MetroHealth and While I took piano lessons growing University Hospitals hopes to do up, it’s always a struggle for me to its part to reduce that number. get back to the keyboard, so I don’t The Cleveland consortium GUIDANCE do it as much as I would like. recently was awarded a seven-year, ■ Career advice you wish $2.5 million grant from the National someone would have given you? Institutes of Health as part of the It’s OK to say “no” to some things. National Heart Failure Research ■ If you weren’t in your current Reminger means business. Think of us an extension of your management Network. The Cleveland partner- occupation, what would you be team, providing strategic guidance and counsel to help your organization ship is one of nine in the country doing? Teaching high school avoid legal pitfalls and capitalize on promising opportunities. that will be involved in clinical mathematics. I enjoy seeing young trials to test new approaches for minds get excited about new We serve a diverse local, national and international client base, including treatments of heart failure. concepts. I was a math major in “We’re quite excited to be part of both privately and publicly held corporations. Our full service representation college, and for a while considered includes corporate, tax, real estate, financing practice and intellectual property. it,” said Dr. Dunlap, principal in- combining my interests in math vestigator on the project for Metro- with my excitement about teaching. RESULTS. PERIOD. It’s more than just our motto, it’s our passion. To learn more, Health, which recently earned top ■ Favorite nonwork activity? ratings for its heart failure program Stephen E. Walters contact Managing Partner Stephen E. Walters in our Cleveland office. Various musical activities. I play a in 2012 HealthGrades reports. little guitar, recorder, drums and other percussion, and I directed ■ Daily must-read? The Plain the Gospel Choir at the Unitarian Dealer. While I don’t always agree Church in Shaker Heights for 10 with what they write, it’s still what years. For the past 20-plus years I binds our city together, either in have been singing with the Singers’ paper or online “print.” Club of Cleveland, a men’s chorus ■ Who do you admire and why? that is now in its 119th year of Thomas Jefferson. He was a true performance. I love the fact that the Results. Period. renaissance man. While he is group has such a rich history that remembered most for his extra- is linked to the history of Cleveland. Reminger.com - 216.687.1311 ordinary writings, he also was an We’re serious about our music, inventor, scientist, educator, politician but also serious about having a and nail maker. I remember good time together. Come to one Akron | Cincinnati | Cleveland | Columbus | Sandusky | Toledo | Youngstown | Ft. Mitchell | Lexington | Louisville touring Monticello and coming of our concerts! (www.singers across an exhibit depicting his nail- club.org) 20120213-NEWS--16-NAT-CCI-CL_-- 2/10/2012 3:12 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012 LARGEST 2011 NE OHIO PHILANTHROPIC GIFTS

RANKED BY GIFT AMOUNT(1)

Development contact Cash or Phone number Rank Recipient Donor Gift amount Gift date Purpose of the gift Connection to recipient commitment To support the Mandel School of Applied Social Sciences, the 1 Case Western Reserve University Estate of James W. and 23,500,000 April 29, 2011 College of Arts and Sciences, the School of Medicine and the N/A N/A Bruce A. Loessin Angela Bowen Williamson Case School of Engineering (216) 368-4352 Bruce A. Loessin 2 Case Western Reserve University Anonymous 20,000,000 Oct. 13, 2011 To support programs in the natural sciences Alumnus N/A (216) 368-4352 University Hospitals Rainbow Babies Char and Chuck Fowler To establish the Angie Fowler Adolescent & Young Adult Sherri Bishop 3 & Children's Hospital Family 16,000,000 July 8, 2011 Cancer Institute Benefactor N/A (216) 983-2200 Past chief of staff, Armando Chardiet 4 Cleveland Clinic Anonymous 12,457,159 Sept. 1, 2011 Lutheran Hospital Lutheran Hospital Cash (216) 444-1245 Armando Chardiet 5 Cleveland Clinic Anonymous 10,000,000 Dec. 27, 2011 Lerner College of Medicine Trustee Cash (216) 444-1245 (2) Cathy and James C. Establish a chair in medical innovations, funding patent Armando Chardiet 5 Cleveland Clinic Innovations Justice II 10,000,000 Nov. 23, 2011 applications, seed money for early stages of development Generous benefactor Commitment (216) 444-1245 Create a chair in Global Business, scholarship support for Berinthia R. LeVine 5 Cleveland State University Monte and Usha Ahuja 10,000,000 June 30, 2011 business and engineering students Alumnus Combination (216) 523-7275 Fred and Laura Ruth Create a new gallery in Ohio City, museum expansion and August A. Napoli Jr. 8 Cleveland Museum of Art Bidwell 7,500,000 Sept. 15, 2011 renovation, endowed chair in contemporary art Longtime supporters Combination (216) 707-2154 Susan and William Two endowed faculty chairs; one endowed fund for financial Jonathan E. Bridge 8 University School Oberndorf 7,500,000 Dec. 2011 aid; academic wing Alumnus Cash (216) 831-1984 Doreen Riley 10 John Carroll University Frank and Helen Schilling 6,000,000 Dec. 2, 2011 To provide full-tuition scholarships to high-achieving students Alumnus Commitment (216) 397-1886 Sherri Bishop 11 University Hospitals Anonymous estate 5,730,621 April 29, 2011 N/A N/A N/A (216) 983-2200 A. Malachi Mixon III and To support the Richey-Mixon Building and to encourage Bruce A. Loessin 12 Case Western Reserve University Joseph B. Richey II 5,000,000 Sept. 5, 2011 innovation particularly within the Case School of Engineering Alumnus and benefactor N/A (216) 368-4352 Armando Chardiet 12 Cleveland Clinic Anonymous 5,000,000 Feb. 10, 2011 Cardiovascular research Grateful patient Cash (216) 444-1245 Jon Limbacher 12 Cleveland Orchestra Alexander and Sarah Cutler 5,000,000 Nov. 12, 2011 To increase student attendance Benefactor Combination (216) 231-7520 Frankino and Dodero Sherri Bishop 15 University Hospitals families 3,500,000 Jan. 25, 2011 For the Frankino-Dodero Family Infusion Therapy Suite Benefactor N/A (216) 983-2200 Armando Chardiet 16 Cleveland Clinic Anonymous 3,042,147 Nov. 16, 2011 Area of greatest need Grateful patient Commitment (216) 444-1245 Barbara and A. Malachi Ophthamology research and education; the Barbara and A. Armando Chardiet 17 Cleveland Clinic Cole Eye Institute Mixon III 3,000,000 June 16, 2011 Malachi Mixon III Institute Chair in Ophthalmology Grateful patient, trustee Commitment (216) 444-1245 Grateful patient, Armando Chardiet 18 Cleveland Clinic Anonymous 2,826,872 April 19, 2011 Sydell and Arnold Miller Family Heart & Vascular Institute volunteer leader Cash (216) 444-1245 Longtime supporters, August A. Napoli Jr. 19 Cleveland Museum of Art Sally and Sandy Cutler 2,500,000 Aug. 26, 2011 Establish Director's Chair member of the board Commitment (216) 707-2154 Sherri Bishop 20 University Hospitals Anonymous 2,494,471 Feb. 21, 2011 N/A N/A N/A (216) 983-2200 To establish the Dorothy Ebersbach Academic Center for Bruce A. Loessin 21 Case Western Reserve University Dorothy Ebersbach 2,000,000 Dec. 9, 2011 Flight Nursing Alumna Commitment (216) 368-4352 To support programs in the Department of Electrical 21 Case Western Reserve University Charles H. Phipps 2,000,000 June 22, 2011 Engineering and Computer Science at the Case School of Alumnus Commitment Bruce A. Loessin Engineering (216) 368-4352 Bruce A. Loessin 21 Case Western Reserve University Eric Spangenberg 2,000,000 Oct. 13, 2011 To endow a professorship at the School of Law Alumnus N/A (216) 368-4352 Bruce A. Loessin 21 Case Western Reserve University Mary W. Sheldon, M.D. 2,000,000 Oct. 13, 2011 To endow a professorship at the School of Medicine Alumnus N/A (216) 368-4352 August A. Napoli Jr. 21 Cleveland Museum of Art Anonymous 2,000,000 Sept. 2011 Endowment fund for purchase of ancient western art N/A Commitment (216) 707-2154 Cornelia and Richard Jonathan E. Bridge 21 University School Matson 2,000,000 Jan. 2011 Academic wing Alumnus Combination (216) 831-1984 Jonathan E. Bridge 27 University School James Williamson estate 1,800,000 May 2011 Academic wing Alumnus Cash (216) 831-1984 Sherri Bishop 28 University Hospitals Anonymous estate 1,604,804 Feb. 7, 2011 N/A N/A N/A (216) 983-2200 March 17, Sherri Bishop 29 University Hospitals Anonymous estate 1,522,518 2011 N/A N/A N/A (216) 983-2200 The Power of Three: The Allen The Allen Theatre project with a percentage to Cleveland Play Jack Stinedurf 30 Theatre Project Walter and Jean Kalberer 1,500,000 Sept. 14, 2011 House endowment and Cleveland Play House Annual Fund Board member Commitment (216) 400-7030 Alumni, parents and Jonathan E. Bridge 30 University School The Opatrny Family 1,500,000 May 2011 Academic wing trustee Cash (216) 831-1984 Jonathan E. Bridge 30 University School Susie and John Turben 1,500,000 Jan. 2011 Endowed fund for financial aid, academic wing endowment Alumnus, trustee Commitment (216) 831-1984 Deborah Farquhar 33 Laurel School The Juster Family 1,300,000 June 30, 2011 To establish and endow the Fairmount Minerals Endowed Chair Alumna, past chair of Cash Jones for Experiential Learning and Community-Based Programming the board of trustees (216) 455-3027 Alumnus, member of the Bruce A. Loessin 34 Case Western Reserve University Char and Chuck Fowler 1,250,000 July 2, 2011 To support research on malignant melanoma board N/A (216) 368-4352 The Power of Three: The Allen Peter B. Lewis and Toby Jack Stinedurf 34 Theatre Project Devan Lewis 1,250,000 Sept. 14, 2011 Construction, renovation Donor Commitment (216) 400-7030 Joy and Thomas Murdough Board of directors, Sherri Bishop 34 University Hospitals Jr. 1,250,000 Jan. 31, 2011 To establish the Master Clinician Award volunteer N/A (216) 983-2200 James and Marcella March 10, Betty Farmer 37 Hiram College Nelson 1,218,273 2011 Endowment and capital Alumnus, board member Commitment (330) 569-5281 Sherri Bishop 38 University Hospitals Anonymous 1,200,000 Aug. 25, 2011 N/A N/A N/A (216) 983-2200 Armando Chardiet 39 Cleveland Clinic Anonymous 1,089,058 Dec. 28, 2011 Liver transplantation research and education Grateful patient Commitment (216) 444-1245 Source: Information is from the gift recipients with additional research by Crain's. Crain's Cleveland Business does not independently verify the information and there is no RESEARCHED BY Deborah W. Hil guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) This list includes 2011 donations from individuals, families and estates, it does not include donations from corporations or foundations, donations to religious organizations were not included. (2) Information from The Plain Dealer, Dec. 9, 2011. 20120213-NEWS--17-NAT-CCI-CL_-- 2/10/2012 4:13 PM Page 1

FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Turner: Presence in in-demand industries helps contractor

continued from PAGE 1 Turner last year recorded $250 cialties, such as its public assembly to maintain a local staff between than a century ago. Mark Dent knows these are very million in construction revenue segment. the surges in business. Its solution good times at Turner Cleveland, here compared to $70 million in 2008. For example, the head of the is simple: Build relationships and Life without a bullpen which has worked here since 1906 As the big jobs it took on ramped Medical Mart project for Turner is develop expertise in sectors that are The stability Turner enjoys in an and can point to 51 projects in down- up, Turner’s share of full-time jobs John Dewine, who came to Cleveland in demand, such as in health care industry marked by volatility is not town Cleveland’s immediate vicinity. in the building trades in Northeast from recent stops in Kansas City for and education. lost on its competitors. He is vice president and general Ohio shot to 1,100 last year from a big-ticket makeover of Arrowhead “We do many $2,000 jobs, but Tony Panzica, CEO of Panzica manager of the Cleveland office. 372 in 2008. Stadium and New York City for people don’t realize that,” Mr. Dent Construction Co. in Mayfield Village, Mr. Dent was promoted to head building the new Yankee Stadium. said. “They do not get a sign.” calls Turner “a good competitor,” Turner Cleveland in 2008, when the Fluid resources Mr. DeWine is also no Cleveland For example, last year Turner noting that his rival enjoys an recession gripped the region’s con- For a construction executive such newbie. A 30-year Turner veteran, installed a door for PlayhouseSquare advantage in its ability to build and struction market and the nation’s as Mr. Dent, the vast shifts in projects Mr. Dewine served as superinten- Foundation. It’s part of maintaining keep bench strength. as well. Now, Turner is on the present special challenges in terms dent for the company in the 1990s a relationship dating to 1988 that “When something big pops up or other side of the cycle, though its of staffing up when big jobs — on the 59-story Key Tower and has ranged from putting tenants the market takes off, we don’t nec- smaller, local general contractor termed “whales” by constructors — what is now Quicken Loans Arena. into foundation-owned office essarily have the people to go after competitors are not so healthy. are landed. “He was able to come back here buildings to, most recently, con- it,” Mr. Panzica said. “Come to my “My timing was perfect,” However, Turner does not go for this job,” Mr. Dent said of Mr. verting the Allen Theater to a office and you won’t find a bullpen quipped Mr. Dent, who has worked wild with newspaper advertising Dewine. “This is how you are able home for Cleveland Play House and for people waiting for their next here for Turner for 25 years after and headhunters when the whales to build a specific expertise that Cleveland State University’s theater project.” two years with Turner in New York come its way. Instead, it primarily you need. At the same time, we are department. Mr. Panzica notes that the $10 City fresh from Bowling Green State transfers in employees from other able to maintain local talent.” “We don’t want to build a theater million construction jobs Turner University’s construction manage- jobs in the region or nation to meet During the last few lean years in and go away,” Mr. Dent said. reaches for in slow times are the ment program. Today, Turner Cleve- its needs. Cleveland, Turner staffers from here “Roughly 75% of our work is for mainstay of local general contrac- land has 106 full-time professional “This way, employees know the worked on its jobs from Cincinnati repeat customers.” tors such as his company. That’s employees, up from 45 in 2008. Turner way,” Mr. Dent said of and Toledo to out of state. Turner enjoys an advantage over why Mr. Panzica can say, “I’m Turner also employs some general the culture of the 5,000-employee some competitors in the relation- happy when Turner is busy,” as its tradesmen for miscellaneous duties, contractor, which emphasizes part- Big on repeat customers ship category because of its deep work on big jobs draws the giant a staff of 50 today compared to five nerships on jobs. That approach On the marketing side, Turner roots here, dating from building a company away from smaller in 2008. also allows Turner to develop spe- must find enough work in the area factory for Murphy Oil Soap more projects. ■

Closer: Progress already shows Tax: Plan acknowledges burden

continued from PAGE 3 helping to expand Ohio’s role in the oil and continued from PAGE 3 sponsors of the original legislation, said he hasn’t Hill, a noted economist and dean of the Levin gas supply chain, which includes manufac- months,” Mayor Jackson said. “We were never seen Mayor Jackson’s proposal, though a College of Urban Affairs at Cleveland State turing thousands of products required to against the correct approach to handling this letter dated Feb. 6 from the mayor’s finance University. He’s also a former instructor of Mr. extract, process and transport oil and gas issue.” director accompanying the proposal was sent Duritsky, who earned his bachelor’s and products. It’s hoped that the sector can The initial reaction to Mr. Cimperman and other council members. master’s degrees in urban studies from Dr. achieve critical mass here and grow the oil Hill’s department before going to work for and gas service sector here generally, he said, While the mayor’s proposal would offer Still fighting Team NEO, a Cleveland-based regional similar to the way that industry grew up breathing room for many of Cleveland’s strug- Since the original legislation stalled last fall, economic development entity. around Houston in the last century. gling music venues, Peabody’s owner Chris the coalition, led by Mr. Watterson, has been Dr. Hill, for one, thinks Mr. Duritsky likely Toward that end, Mr. Duritsky said he has Zitterbart isn’t so sure it would offer relief for fine-tuning its talking points to pitch to the will succeed in his new task — if he applies received support from local industry giants, his club, which he noted is saddled with mayor and council. They hope to get out from the same gusto and passion that he did to his such as Timken Co. and Parker Hannifin admissions tax debt, though he couldn’t specify under the admissions tax by the time the Rock studies at Cleveland State, he said. Corp., which both have sent letters to about how much. and Roll Hall of Fame induction ceremonies “Every once in a while you get a student 50 of their largest suppliers asking them to Mr. Zitterbart’s club, which holds 700, falls come to Cleveland in April. who pushes you really hard. Jacob was one of work with Mr. Duritsky whenever they can to outside the mayor’s capacity parameters, and With the help of the Community Partner- those students,” Dr. Hill said. attract more companies to the area. ideally, he’d like total exemptions for venues ship for Arts and Culture, a foundation-backed “He had lots of intellectual curiosity,” Dr. “We’re trying to find out which companies holding up to 1,000 people. nonprofit that supports arts groups in North- Hill said. “He was driven to understand how in Ohio are currently participating, and which “I want Peabody’s to be in Cleveland, but I east Ohio, the coalition collected various data the economy works and why it works in par- ones that aren’t can be connected to the oil need a system that allows us to survive,” said points from its members to demonstrate how ticular ways.” and gas supply chain,” Mr. Duritsky said. Mr. Zitterbart, who learned of the mayor’s much economic activity the clubs bring to the Until the end of last year, Mr. Duritsky was proposal last Friday morning, Feb. 10. city. the chief researcher for Team NEO, and in Team Shale’s main man Peabody’s, which is located near Cleveland The five venues surveyed by the coalition — that role he worked with area chambers of In addition, Mr. Duritsky has been talking State University, and the Beachwood Ballroom the Beachland, Peabody’s, Brothers Lounge, commerce and other economic development to a slew of area government officials, manu- & Tavern in Cleveland’s Collinwood neighbor- the Happy Dog and Now That’s Class — argue officials to attract new companies to North- facturing advocacy groups such as Magnet hood, have become the poster children of the that they collectively pay nearly $200,000 a year east Ohio. He’s now working with those same and WIRE-Net in Cleveland, and other anti-admissions tax movement due to their in payroll taxes, $300,000 a year in sales taxes contacts and others as Team NEO’s director economic development agencies such as the lofty delinquent admissions tax bills. and close to $50,000 a year in property taxes. of business attraction, who is assigned to work Stark (County) Development Board, said “There are those who believe they don’t “You’ve got businesses open around those with companies related to shale gas and oil. Chris Thompson, director of engagement for have to pay anything, and there are those who clubs because they’re attracting people on a never did pay anything,” said Mayor Jackson, Divvying up a steak the Cleveland-based Fund for Our Economic regular basis,” Mr. Watterson said. “We’re Future. Mr. Thompson’s organization works who is proposing payment plans over several bringing tens of thousands of people in.” A 30-year-old Bedford native, Mr. Duritsky with and funds many of the entities with years for delinquent payers. “That is blatantly The coalition suggests that had all the clubs says he’s always wanted to be involved in urban which Mr. Duritsky also is working. wrong.” paid what they owed, they would have con- and economic development. But his current “He’s the manager of what I call Team While Beachland would fall within the tributed less than $100,000 to the city’s coffers role is unlike most economic development Shale,” said Mr. Thompson, who noted that, confines of the mayor’s proposal, the venue through admissions taxes. Cleveland collected jobs of the past — at least in Northeast Ohio. so far at least, Mr. Duritsky seems to be striking still is stuck with a large tax bill hovering near just more than $10 million in admission taxes For one thing, it doesn’t involve so much the right chord with the right players. $400,000, according to Cindy Barber, the last year, according to data from the city’s finding companies and selling them on the Mr. Thompson likens the situation to a venue’s co-owner. That includes about finance department. benefits of operating in the region. Rather, it frontier town in the Old West suddenly be- $119,000 in back admissions taxes over three Ticket sales to sporting events, or essential- involves working with companies that often coming a stop on the first transcontinental years, $40,000 in interest and about $244,000 ly an “admission charge to any one place” that already want to be in the state and matching railroad. Shale gas and oil represents a similar, in penalties. isn’t for a nonprofit, are subject to the tax, ac- their needs with what can be offered by game-changing opportunity for Ohio, he said. Beachland’s and Peabody’s woes con- cording to current law. chambers of commerce and local governments “There’s about to be a train running tributed to the formation last year of the Cleve- While some club owners admit the admis- in the region. through my region — what do I do to take land Music Club Coalition — a still growing sions tax isn’t the only reason their businesses “It’s the difference between all of us fighting advantage of that? Do I put a town next to the faction of local venues fueling the admissions are hurting, they say the city’s hesitance to over scraps and all of us dividing up a steak,” tracks? A factory? A pipeline?” Mr. Thompson tax fight, which is being steered by Sean drop it for small clubs, as was done in Seattle as one developer put it, anonymously. asks rhetorically. “What do I do to get myself, Watterson, a co-owner of the Happy Dog in in 2009, shows the city has little interest in Mr. Duritsky said he already is seeing signs my town and my business in position to take Cleveland’s Gordon Square Arts District. supporting the local music scene. of success, and that in the next 60 days there advantage of the train? Finding that out is Mr. Watterson, who also learned of the “What they’re doing is destroying the roots,” should be at least two announcements of new Jacob’s job and Team Shale’s job.” mayor’s proposal Friday morning after being said Henry LoConti Sr., a member of the coali- companies coming to the area to establish Dr. Hill said Mr. Duritsky and his allies contacted by Crain’s, said he was “encour- tion who founded the Agora in 1966. operations related to oil and gas. He declined must do what economic development officials aged” by the plan but would have to study “Cleveland is the city that doesn’t support to identify the companies or the communities always have done, which is to sell assets to it further before making any substantive music at all, and we have the Rock and Roll of involved, but said each will result in more businesses that can capitalize on them. comments about its merits. Fame,” he said. “Why? I don’t know.” than 100 new jobs. “Right now, that’s the asset we have and it “This shows there is recognition of the Mayor Jackson was resolute in saying his “We’ve probably had six or seven oil and represents a huge opportunity,” Dr. Hill said. burden the tax places on the smaller clubs,” proposal addresses the issue. gas leads just fall in our lap already,” he said. “The winds of fortune have kind of shifted in Mr. Watterson added. “We believe we have a fair proposal,” the Some of Mr. Duritsky’s efforts are aimed at Ohio’s direction.” ■ Councilman Joe Cimperman, one of the mayor said. ■ 20120213-NEWS--18-NAT-CCI-CL_-- 2/10/2012 4:54 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 13 - 19, 2012

Fund — now are uncertain, Mr. Mr. Zai started as a management Strnisha said. consultant and quickly developed a Zai: Investment stakeholders scramble The Cleveland International Fund knack for wooing Israeli companies was an important source of financing to the United States. At one time, continued from PAGE 1 ventures.” working with Mr. Zai, though they for the Flats East Bank development his Cleveland Group was the prime business circles. William Beyer, Mr. Zai’s attorney were unwilling to speak with their in downtown Cleveland, contribut- point of contact for small Israeli However, a federal grand jury said last Friday, Feb. 10, he was names attributed to their comments. ing $45 million to the $275 million companies that worked with the indictment unsealed last Tuesday, disappointed the government “He was an opportunist whose mixed-use project. It also is playing Israel Export & International Coop- Feb. 7, tells a different story as to sought the indictment. mental gears were always turning,” a role in financing an expansion at eration Institute. what allegedly was going on in Mr. “We had been trying to resolve said one. University Hospitals, the renovation He also moved into real estate Zai’s world during the entire time this” in a civil proceeding, Mr. Beyer “There was just something about of the former Crowne Plaza hotel in development, where he ran into the frame reviewed by the Weatherhead said. him,” said another. “He talked a good downtown Cleveland as a Westin housing market collapse that started contest judges. In the indictment, Mr. Zai, his game.” and the planned construction of a in 2005 in Northeast Ohio. The indictment charges Mr. Zai father-in-law, Ted M. Vannelli, and “We kept him at arm’s length,” headquarters in Westlake for Ameri- Through various affiliates, Mr. Zai with submitting fraudulent loan accountant Zrino Jukic are charged said a third person who had dealings can Greetings Corp. developed three small condomini- applications and personal financial with 37 counts that allege bank with Mr. Zai but then backed off um projects in Lake County; those statements to both St. Paul Croatian fraud, bribery and money laundering. their business relationship. A diverse background projects were cited in the federal Federal Credit Union and Park View Twenty-five charges are related to The indictment has sent some of With the Cleveland International indictments of Mr. Zai, his father- Federal Savings Bank to obtain loans made to Mr. Zai’s companies Mr. Zai’s colleagues scrambling to Fund, Mr. Zai had created what is in-law Mr. Vannelli and Mr. Jukic, more than $16 million in fraudulent by the liquidated St. Paul Croatian push ahead with the crowning called an EB-5 regional center, the accountant. loan funds over a six-year period credit union in Eastlake and 11 achievement of his decade-long which is part of a federal program The projects included Aria’s Way, beginning in February 2004. counts are related to allegedly false rocket to respectability — the Cleve- that provides permanent U.S. resi- a six-townhouse development in In particular, the indictment loan documents and personal finan- land International Fund — that Mr. dency — in the form of a green card Concord Township; Bank’s Landing, describes an arrangement whereby cial statements used to obtain loans Zai was nurturing to become a — for foreign nationals who invest a 12-unit development in Painesville; the credit union’s president, Anthony from Park View Federal. One count major vehicle for attracting foreign at least $500,000 in an investment and Lake Breeze, a 16-unit develop- Raguz, provided to Mr. Zai’s busi- is for allegedly making false state- investment to Northeast Ohio. vehicle such as the fund. ment in Eastlake. nesses $150,000 a month in fraudu- ments to federal agents. The Cleveland International Fund As an international program, it Two of the projects became lent loan funds between Feb. 1, is preparing to continue despite Mr. was right up Mr. Zai’s alley, because headaches for Park View Federal, 2007, and Dec. 31, 2007, “to cover, ‘He talked a good game’ Zai’s legal issues. Steve Strnisha, a he grew up and lived on three con- which got back land from the devel- among other things, operating costs.” Until the indictments, the 43- well-respected financial adviser tinents and speaks Farsi, Urdu and opers to satisfy mortgages. Today, The indictment identified 15 year-old Mr. Zai had been building who started working at the fund full French, in addition to English. Parkview is offering 11 unsold lots at businesses owned or controlled by a reputation as a focused and driven time this year as chief financial officer, Mr. Zai was born in Iran and, as Lake Breeze for sale for a total of Mr. Zai and said, “Certain of these man on the move. However, five said the fund can continue to be a Crain’s reported in 2003 when he $69,000 and a Solon-based investor entities were created primarily to individuals who had business good source of capital for Northeast was named a member of its “Forty group is redoing 15 acres at Aria’s operate as a ‘safe haven’ for credit dealings with Mr. Zai all told Crain’s Ohio development projects. Under 40” class that year, grew up Way that it bought from Park View union proceeds, while others per- they had been put off by what one However, the futures of two in London. He moved to Cleveland for $250,000 in 2009. ■ formed little or no legitimate busi- saw as “a smorgasbord of businesses other funds Mr. Zai was working to in 1998 to start a family and to be ness despite having loan proceeds that weren’t connected.” They all create — the Columbus Interna- near the family of his wife, Tina, in Senior reporter Stan Bullard also intented (sic) for Zai’s ‘business’ also described an uneasiness when tional Fund and the Cleveland Bio Kirtland. He now has three children. contributed to this story. REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Toni Coleman E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

AUCTION REAL ESTATE BUSINESS SERVICES SERVICES Crain’s Executive Recruiter CPA on Call, LLC Individual & Business Taxes Bookkeeping - Payroll Shopping Center Management Free Consultations 35 Years Experience 330.225.2822 $25 off for new clients. www.rgnietoco.com Call 440-226-0660 Manager, CEBI Operations Real Estate Marketing and Entrepreneurship Consulting FLYNN [Job #990224] Visit ENVIRONMENTAL Kent Campus – Kent, OH AARDVARK-LLC.COM For Assessments Opportunity to manage and coordinate the activities of the 440-605-0555 • Fax 440-605-0666 Center for Entrepreneurship & Business Innovation (CEBI) that (800) 690-9409 support the entrepreneurship coursed and programs (major & Bruce Klotzman www.flynnenvironmental.com minor) and non-curricular activities of the (CEBI). Qualifications: Bachelor’s degree is required with a Master’s degree strongly preferred. Minimum of 5 years of progressively REALTORS: increasing business experience with P&L responsibility. Now is a great time to promote BUSINESS Demonstrated experience in leadership with P&L responsibility your Luxury Properties to and achievement, business or strategic planning, project high-end prospects. SERVICE management, consulting, basic computing skills, ability to relate with students, faculty board members, alumni and the broader Call 216.522.1383 OWNERS! community, professional acumen and superior communications skills, both written and oral. Submit your For a complete description of this position and to apply online, REAL ESTATE visit our jobsite at jobs.kent.edu. FOR SALE business card Equal Opportunity/Affirmative Action Employer to promote your PRICE REDUCED by Receiver! service and Part Time work from home $499,000 Account Managers, Bookkeeper and Sales Representatives ** 26,900+/- sf on 5.6+/- acres ** receive a Lake County, OH Our company is looking for part time work from home Account 7272 Mentor Ave. (near RT. 306) SUBSTANTIAL Managers, Bookkeeper and Sales Representatives are needed to Ag Real Estate Group, Inc., work on their own flexible schedule time.it pays $3000-$4000 a 216-504-5000 DISCOUNT www.agrealestategroup.com month plus benefits and takes only little of your time. Please off your ad price. contact us for more details. Requirements - RECEIVER ORDERS SALE To find out more, • Should be a computer Literate. • 2-3 hours access to the internet weekly. Multi-Family – 38 units contact Willard, OH • Must be 19 yrs and above of age $950,000 Toni Coleman at • Must be Efficient and Dedicated Ag Real Estate Group, Inc., 216.522.1383 If you are interested and need more information, Please 216-504-5000 send your resumes to [email protected] www.agrealestategroup.com 20120213-NEWS--19-NAT-CCI-CL_-- 2/10/2012 3:11 PM Page 1

FEBRUARY 13 - 19, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Expect a healthy amount on the cost of the campaign, saying it was that demographic, and they also are some of FEBRUARY 6 - 12 proprietary information. — Timothy Magaw the most frequently cheated by corporations, of ads from the Clinic Mr. Perotti said. They tend to be less business ■The Cleveland Clinic’s Super Bowl ad show- savvy, he said. The big story: Prominent businessman A. Follow them casing its same-day appointment initiative Mr. Perotti doesn’t see risks to using Face- Eddy Zai of Pepper Pike was indicted as part of an was just a hint of what’s to come from the into court book this way. ongoing federal investigation into the collapse of health care juggernaut’s latest advertising blitz ■ Some Facebook pages serve as a window “It’s simply a billboard on a computer,” St. Paul Croatian Federal Credit Union in East- in Northeast Ohio. into a person’s life or a running update of a he said, “and a lot of people are driving lake. He pleaded not guilty to the charges. Mr. Starting today, Feb. 13, the health system restaurant’s menu. This one announces by and reading that message.” — Michelle Zai has been a key player in financing deals in will launch the full campaign — dubbed the who Dworken & Bernstein Co. LPA might Park Northeast Ohio through his Cleveland Interna- “Power of Today” — in hopes of demon- sue next — perhaps on your behalf. tional Fund. His new Cleveland Bio Fund has strating the Clinic is, as its chief marketing A law firm with offices in Cleveland and been planning to invest in small to midsize med- Advocates for the officer Paul Matsen character- Painesville, Dworken is ical device companies looking to expand in China. ized it, “approachable and using the social media site to city on the rise (See related story, Page One.) accessible for everyone.” let people know about ■ As living in downtown Cleveland becomes “The Cleveland Clinic is potential class action suits increasingly popular, so, too, it appears, is That’s settled: State Attorney General Mike known for world-class care,” it’s researching, in addition advocating on behalf of the city center. DeWine announced that Ohio would receive an Mr. Matsen said. “We want to sharing other firm news. Downtown Cleveland Alliance, the non- estimated $335 million of a to let the community know Most recently, the firm posted profit organization charged with promoting $25 billion federal settlement that we are a very accessible that its attorneys are investi- downtown and communicating with busi- with five of the nation’s largest health care organization, gating alleged misrepresen- nesses, residents and governmental bodies, banks. The settlement, aimed available to everyone every day.” tations made by the manufacturers and in 2009 began its City Advocate program with at helping homeowners hit The advertising campaign will involve suppliers of bamboo flooring. 15 members. From 2010 to 2012, applications hardest by the nationwide seven TV spots showcasing the Clinic’s In some cases, information-gathering have tripled, according to the alliance’s foreclosure crisis, was reached employees, facilities and patient experience appears to have become a two-way street: director of marketing and public relations, with Ally, Bank of America, initiatives, Mr. Matsen said. Further down on Dworken’s Facebook Gina Morris. Citi, JPMorgan Chase and The TV spots are the Clinic’s first in at “wall,” the company posted about allegedly Those applicants chosen for the program DeWine Wells Fargo. The attorney gen- least five years that have focused on the defective Whirlpool ovens, to which one have worked with the city of Cleveland to eral’s office said the settlement clinical care offered throughout the health Facebook user replied that the firm should build a playground for residents with children was the result of “foreclosure abuses, fraud, and system. Last year, the Clinic touted its “Let’s investigate a type of oven display. Dworken to use, placed temporary art and other visual unacceptable mortgage practices.” Move It” campaign aimed at promoting answered, “Will check it out.” displays in empty storefronts, and created active lifestyles. Dworken has used various media over the multimedia promoting the city, among other Second time a charm?: Timken Co. and The ads were produced by VSA Partners, years to reach potential class action clients, endeavors. United Steelworkers Local 1123 reached a new an advertising agency with offices in Chicago, and “now that social media is available, we’ve Ms. Morris said the alliance monitors who tentative agreement on a five-year contract to New York and Minneapolis. The ads started to use that because it’s the most applies for the program and how often, and replace their existing labor agreement that were placed locally by Cleveland’s Adcom effective way to reach certain demographic about 90% of the applicants are first-timers. expires September 2013. Members of the union communications. audiences,” said Patrick J. Perotti, partner. The 2012 group will be announced later this last month rejected a previous tentative agree- A Clinic spokeswoman would not comment Teens and young adults in their 20s are month. — Joel Hammond ment, an action that Timken said put at risk a planned, $225 million investment in its Faircrest Steel Plant in Canton. Timken said union members will vote on the new agreement, which unanimously is supported by local USW nego- MILESTONE BEST OF THE BLOGS tiators, within two weeks. THE COMPANY: United Computer Excerpts from recent blog entries on about U.K. company Reckitt Benckiser CrainsCleveland.com. Group plc, maker of Frank’s RedHot Sauce. Jobs in pocket: Nestlé Prepared Foods Co., a Group Inc., Independence The sauce recently toppled longtime champ division of Nestlé USA, is moving its Hot Pockets THE OCCASION: Its 25th anniversary They’re equal in care, but Tabasco, made by McIlhenny of Louisiana, and Lean Pockets frozen sandwich and snacks for the title of best-selling hot sauce in business units from Englewood, Colo., to its James A. Kandrac was destined to be a far apart in website design America. headquarters in Solon. A Nestlé spokeswoman business owner from an early age. ■ The Cleveland Clinic and the Mayo Clinic PNC Capital Advisors manages $35 said those units have about 70 people in When he was 12, Mr. Kandrac began billion, including Reckitt Benckiser shares. Colorado, and “about two-thirds” of them will are two of the world’s great health care reading The Wall Street Journal with his institutions, but it’s no contest when it Mr. Schulz is a true believer in Frank’s receive offers to move to the Solon operation. father and recognized RedHot Sauce. Nestlé employs about 1,900 people in Solon. comes to the effectiveness of their websites. right away that he was Inc. magazine’s weekly “website smack- “I have a bottle here at my desk,” he told fascinated with business down” compared the institutions’ websites Bloomberg. “The hot sauce category has Powering down: FirstEnergy Corp., which and technology. So it grown faster than other categories, and last month said it was closing six coal-fired power and declared the Cleveland Clinic a winner made sense in December by a good margin. there’s a lot of competition out there.” plants in three states, announced that its 1987, when he was 26, Monongahela Power Co. subsidiary will retire On the Mayo Clinic’s site, “There is virtu- that Mr. Kandrac would ally nothing on the homepage that is three more such plants in West Virginia by Sept. start his computer secu- Has anybody seen this 1. As it did with the prior announcement, Akron- designed to help patients, families of rity/data backup/disaster patients, or people looking for assis- mysterious thing called based FirstEnergy said the decision to close the recovery firm, United plants is based on the U.S. Environmental Pro- tance from the hospital,” according ‘snow?’ Kandrac Computer Group. to the magazine. tection Agency’s Mercury and Air Toxics Stan- The launch came after ■ It hardly seems like it matters in this dards and other environmental regulations. By contrast, the Cleveland Clinic’s the young Mr. Kandrac completed under- site “keeps the homepage very non-winter winter, but Forbes.com graduate work at Cleveland State University simple. The main image rotates, bestowed upon Cleveland the title Welcome to our world: Global Cleveland, and an internship at IBM. In 1993, he recruited of America’s snowiest city. an economic development initiative focused on showing research, technology, a childhood friend from Wickliffe, Michael D. and patient care as the three Cleveland “is hit with an average connecting newcomers to opportunities and the Powall, to join United Computer Group as 67.9 inches of snow annually, region, has opened its Welcome Hub in the heart central messages. Much more vice president. Mr. Powall’s background in importantly, the primary navi- according to data from the of downtown Cleveland. The hub, which will computers and business leasing, combined National Oceanic and Atmos- serve as a first stop for immigrants and other gation clearly leads you to with a “great attitude and admirable work ethic,” ‘Locations and Directions,’ pheric Administration, which is people new to the region, is on Public Square, in have been instrumental in the company’s enough to make it the snowiest major city in the Huntington Bank Building. ‘Find a Doctor,’ ‘Patient & Visitor’ informa- growth. tion, and bold tabs for ‘Contact Us’ and the U.S.,” the website reported. The company’s flagship security product ‘Appointments.’” Forbes.com noted that our average This and that: Key Private Bank, the invest- is called Vault400. It backs up a client’s data January-February temperature is 28 degrees. ment, trust and wealth management arm of Inc. finds the Cleveland Clinic site supe- to United Computer Group’s secure data rior in most other areas, too, from general That, combined with the “lake effect” — in KeyCorp, established Key National Trust Co. of center. The encrypted data is available at all which cold winds blowing across warm Delaware to provide trust services for wealthy user friendliness to the effectiveness of its times for immediate, user-initiated recovery, search functions. lakes pick up water vapor and then deposit clients and prospects seeking asset protection, the company says. United Computer says it onshore after it freezes — leads to our high tax savings and flexibility using Delaware’s Vault400 also helps clients comply with reg- In this case, we endorse snow totals. favorable trust laws. … JumpStart Inc. said a $1 ulations under laws such as the Health Insur- “The lake effect is a constant pounding million challenge grant will help the nonprofit ance Portability and Accountability Act, which hitting the sauce at work effect,” said Deke Arndt, chief of NOAA’s bring its model for fostering entrepreneurship to requires secure data backup. ■ Those of you who like it hot and spicy when Climate Monitoring Branch. “It’s very con- 20 additional cities. The John S. and James L. For information, visit www.ucgrp.com. it comes to your food will find a kindred sistent.” Knight Foundation is providing the challenge spirit in Martin Schulz, director of interna- Except, apparently, for this year. grant in support of the JumpStart America Ini- Send information about significant corporate tional equities at PNC Capital Advisors in (And our apologies if, over the weekend, tiative. anniversaries to managing editor Scott Suttell Cleveland. Mother Nature in a fit of karma dumped a at [email protected]. He was quoted in a Bloomberg story lot of snow on the region.) 20120213-NEWS--20-NAT-CCI-CL_-- 2/9/2012 11:41 AM Page 1

©2012 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost. *Carrera S model shown.

It’s not just faster. It’s wider, lighter, sharper, nimbler, and faster.

When you set out to improve upon greatness, you leave no stone unturned. Or in this case, no component unimproved. Built from the ground up with 90% new or fundamentally revised materials, the next 911 redefines performance as we know it. It’s even shed almost 100 pounds for added agility and improved efficiency. The next 911 is the sports car that turns all we know into everything you desire. See for yourself with a test drive.

The next Porsche 911. Forever the sports car. Starting at $82,100.

Porsche of North Olmsted A Division of Collection Auto Group 28400 Lorain Road, North Olmsted, Ohio 44070

855-218-1288 Open 24/7 at: www.clevelandporsche.com #1 PORSCHE DEALER IN OHIO Follow us on for additional specials and offers

**Customer is responsible for travel to and from track, hotel accommodations and meals. Porsche Driving School trip has a retail value of $1,800.

Right now, purchase the next Porsche 911 Now Partnering With: Proudly point out your Porsche of North Olmsted and receive a trip to the Porsche Driving dealership plate and get 20% off valet parking School located in Birmingham, Alabama. at Cleveland Hopkins Airport. Only from Porsche of North Olmsted.**