Third Frontier Again May Aim at Bigger Grants Investments Could Better Create, Attract Jobs

20121029-NEWS--1-NAT-CCI-CL_-- 10/26/2012 1:31 PM Page 1

$2.00/OCTOBER 29 - NOVEMBER 4, 2012

Third Frontier again may aim at bigger grants Investments could better create, attract jobs

By CHUCK SODER Investments. [email protected] The commission’s goal is to fund more projects like The Ohio Third Frontier the Cleveland-based Global Commission wants to start Cardiovascular Innovation making big grants again. Center, said Dr. Chagnon, The next annual budget who credited the Cleveland for the Third Frontier pro- Clinic-led center with STEPHEN HERRON PHOTOS gram — an initiative designed Chagnon helping launch several health to boost Ohio’s economy care-related startups. through investments in technology The commission has yet to SPECIAL REPORT — could include $50 million set approve formally its proposed $236 aside for larger projects designed to million budget for fiscal 2013, which help the state establish itself as a began July 1. However, at the strong player in various technology group’s monthly meeting last week, sectors, said Norm Chagnon, deputy it voted to approve the general HOW A NEW chief of Ohio’s Office of Technology See GRANTS Page 10 EUCLID AVENUE Cavs planning large Wi-Fi CHANGED network rollout at The Q CLEVELAND By JOEL HAMMOND a photo of the Cavaliers’ new court [email protected] at this Tuesday’s home opener against Washington? If you have a smart phone and Good luck! ◆ What’s next on the to-do list? enjoy watching Cleveland Cavaliers, The Cavaliers, though, have a Cleveland Browns or Cleveland solution on the way. The team soon ◆ Residents feeling at home Indians games at those teams’ respec- will announce a Wi-Fi buildout at tive venues, you’ve encountered the Quicken Loans Arena as part of ◆ The HealthLine helps problem. what team spokesman Tad Carper Upload a photo to Facebook at a calls a larger digital platform up- ◆ Full coverage: PAGES 11-18 Browns home game? Tweet about grade, details of which still are being the Indians from Progressive Field ironed out. www.CrainsCleveland.com/Euclid on Opening Day? Send to Instagram See WI-FI Page 21

For-profit Chancellor U. cuts oft-critical accreditor, eyes another

By TIMOTHY MAGAW By Oct. 11 of next year, Chancel- Chancellor president Robert which their approaches would align offerings, the university’s students [email protected] lor no longer will be accredited by Daugherty, who has maintained more closely with Chancellor’s mis- wouldn’t be eligible for federal the Higher Learning Commission the university is improving on all sion. financial aid — a critical revenue Chancellor University in Seven in Chicago, which twice in the last fronts, said in an interview last The Higher Learning Commis- stream for Chancellor and all for-profit Hills voluntarily is severing ties with three years has rapped the univer- week that Chancellor was in “active sion on two occasions — one as colleges. its longtime accrediting agency — sity on its knuckles for what the discussions with other accreditors recent as last June — issued “show- However, the Higher Learning an organization that has been accrediting body characterized as that are more consistent with the cause” orders against Chancellor, Commission this month lifted its sharply critical of the operations at ailing finances, faulty leadership mission and values of our university.” which required the university to prove most recent show-cause order, though the for-profit college formerly and less-than-stellar academic However, he wouldn’t disclose those it deserved continued accredita- neither officials at Chancellor nor known as Myers University. offerings. accreditors or describe the ways in tion. Without accredited academic See CHANCELLOR Page 8

42 INSIDE 7 Auto recyclers fight a new bill that would allow more access to

74470 83781 by Crain Communications Inc. PLUS: MED MART UPDATE ■ Vol. 33, No. 42

0 CLINIC AND INDIA ■ & MORE 20121029-NEWS--2-NAT-CCI-CL_-- 10/26/2012 2:08 PM Page 1 20121029-NEWS--3-NAT-CCI-CL_-- 10/26/2012 1:33 PM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Booking blues? Not at convention center

At that meeting, Mr. feet available. Event commitments jump; medical mart more than 50% leased Bennett said of the 95,000 Later, Mr. Bennett told square feet of leasable Crain’s that he expects to By JAY MILLER leased and filling quickly, Cuyahoga ularly optimistic about the medical space in the medical mart announce two major ten- [email protected] County Council was told last week. mart leasing. building, 25 tenants have ants this Wednesday, Oct. At a council meeting last Tuesday, “It’s moving much faster than a signed leases for a total of 31, during the three-day Nine months from its planned Oct. 23, Jim Bennett, senior vice few months ago,” he told council. 50,000 square feet. He told Cleveland Clinic Innovation opening, the under-construction president of MMPI Inc., the Chicago “We’ll have no problem filling the council that “lurking around” Summit that starts today, Cleveland Convention Center has firm hired by Cuyahoga County to building.” are prospective tenants who Bennett Oct. 29. 44 conventions booked, up from 26 oversee construction and operation The complex is scheduled to open are showing interest in leas- Mr. Bennett also said he four months earlier, and the adjacent of the $465 million project on and in July 2013, ahead of schedule and ing a total of 125,000 square feet — was negotiating with one prospect medical mart is more than 50% under Cleveland’s Mall, was partic- on budget. well in excess of the 45,000 square See CENTER Page 22

INSIGHT METAL SEAL Automotive FIRES ON ALL recyclers CYLINDERS fear effect Rebound in auto industry, continued of new bill growth in guns fuels Mentor company Salvagers fight added By DAN SHINGLER [email protected] access to auctions By GINGER CHRIST ake a comeback from the [email protected] automotive industry, mix it Auto recyclers in Ohio are trying with a national obsession with to dismantle a legislative effort to firearms and throw in a little change rules about who can buy cars TNortheast Ohio machining know-how at salvage auctions. Senate Bill 273 would allow any- and technology and you get … big growth one — including body shops and for Metal Seal Precision LLC in Mentor. individual consumers — to bid on cars sold at salvage auctions, a The company is in the midst of moving process that for now is restricted to into new digs — a 160,000-square-foot buyers with state-authorized identi- building on Corporate Boulevard that fication cards. Such cards currently are issued only to auto recyclers, but it bought for $3.4 million at the end they would be discontinued if the of 2011 — so it can move much of its bill passes. Auto recyclers say passage of the operations under one roof this year and bill would give an unfair advantage accommodate its recent rapid growth. to unlicensed bidders, who aren’t The company has a 50,000-square-foot subject to the same state and federal regulations as salvage dealers on operation on Tyler Boulevard in Mentor matters such as fencing, liquid and a 70,000-square-foot plant in disposal and licensing. They also worry the increased competition Willoughby. The Willoughby operation would hurt their business and raise will remain open. prices on salvage cars. “Everything from Mentor is coming “We just want a fair playing field,” said Jim McKinney, president of here, and some of the stuff in Willoughby the Ohio Auto and Truck Recyclers is coming here,” said Metal Seal presi- Association and general manager of Milliron Auto Parts, an auto recycler dent John Habe IV of the new space. in Mansfield. The company owns and operates more Insurance companies and auto DAN SHINGLER than 300 pieces of equipment, most of it auction operators see things differ- Metal Seal Precision LLC president John Habe IV at the company’s new 160,000-square- ently, saying, essentially, that the See SEAL Page 9 foot space — which won’t be empty for long. playing field only will be level with passage of SB 273. The bill, spon- sored by state Sen. Keith Faber, R- THE WEEK IN QUOTES Celina, passed the state Senate in April and is set to be voted on by the House after the Nov. 6 elections. “That’s all content “Many of our cus- “This has been the “(Civic leaders) “The net effect is (the current system) limits competition,” said Paul talking about your tomers count on us to rise and fall and rise wanted connectivity Nelson, regional manager for Copart brand that you could innovate for them. again of a great to the major institu- Inc., a Texas-based online reseller of used and salvaged vehicles. Mr. be missing. In a small We’re constantly American street.” tions. … What was Nelson, whose company runs online market like Cleve- growing into new — Chris Ronayne, president of most important to salvage auctions across the United the nonprofit University Circle States, characterized Ohio as one of land, that’s very markets.” Inc. Page 11 the community, the most restrictive states when it important.” — Blaine Davidson, vice however, was eco- comes to salvage auctions. president of sales, Chemical The restricted competition in the — Nader Ali-Hassan, a social Solvents Inc. Page 9 nomic development.” current system means insurance media marketing strategist at and auction companies make less Cleveland digital marketing firm — Joe Calabrese, general man- Rosetta. Page One ager, Greater Cleveland Regional See RECYCLERS Page 20 Transit Authority. Page 16 20121029-NEWS--4-NAT-CCI-CL_-- 10/26/2012 10:53 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Fair deal he business sense Jack Schron brings to Cuyahoga County Council is coming in handy in figuring out how and when to spend the revenue the county will rake in Tfrom its share of casino taxes. Mr. Schron, the longtime president of tool maker Jergens Inc. in Cleveland, deserves an atta-boy for presenting compromise legislation that takes a cautious, equitable approach to the use of the casino tax windfall. It’s a proposal that gives County Executive Ed FitzGerald much of what he wants FROM THE PUBLISHER when it comes to putting those dollars to work in a targeted way, yet also affords members of County Council the opportunity to tap into a chunk of the Desperate for a strong third candidate money as they see fit. Mr. FitzGerald for months has pushed a plan to h how I wish we had a John scads of cash, then founded Perot Systems, those wealthy Americans to pay more. direct the casino taxes toward economic development Anderson in this year’s presi- built it up, and sold it to Dell for billions. Having no independent candidate efforts in and around downtown Cleveland. The dential race. He later became a thorn in the side of the allows the most extreme (loudest) factions idea is to leverage that big pot of cash by applying it I would even enjoy a Ross mainstream candidates in the 1996 pres- on both sides of the political debate to OPerot. idential race. have a bigger, more influential role. to projects and initiatives that strengthen the county’s urban core, rather than see it spent in dribs Heck, I’d even take a Russell Means. We know that no independent or Bill Clinton’s success as a two-term I can imagine what you’re thinking. third-party candidate has won the pres- president was in part due to his ability to and drabs throughout the county in ways that don’t Where the devil is this guy going with idency. We know that the major media attract great support from middle-of- produce a big impact. this idea? What on earth do a outlets do not consider their the-road Americans, those smart enough Various members of County Council have had congressman, a billionaire and BRIAN campaigns as seriously as those to vote by issue and by candidate irre- their own ideas of how to use the money, which has a Native American activist/ac- TUCKER mounted by the Republican and spective of their political party affiliation. been estimated at about $10 million a year. They’ve tor have in common? Democratic parties’ candidates. Few people remember George Bush’s advocated applying the tax revenue to scholarships Russell Means, who led the But what those independent leadership on immigration reform and for county residents and economic development violent, anti-government uprising candidates did was force the the AIDS epidemic in Africa, two issues projects countywide. at Wounded Knee, S.D. and “mainstream” candidates to not generally associated with the conser- Mr. Schron’s compromise plan gives each side later was known for acting as the middle. That’s what I wish vative wing of the GOP. half a loaf, but it doesn’t stop there. It also wisely well, passed away last week. As we had this year. That’s what I wish we had in this I heard the news, I realized I I do not believe, and some campaign. Everyone I talk to is fatigued at calls for county officials to wait to spend the casino had forgotten a couple things polls underscore this, that best — and nauseated at worst — by the money until they can get a handle on how much about him, namely that he had Mitt Romney is as personally non-stop barrage of TV commercials bread there is to dole out. lived in Fairview Park for four years and conservative as the Tea Party faction has tearing at the other candidate. There is With the amount of tax revenue thrown off by the had run for president as an independent. forced him to become in this campaign. a Libertarian in the race but the major Cleveland and Toledo casinos declining steadily in John Anderson, a former Illinois con- Of course, that has made him change news media give him short shrift the months since they opened last May, it’s hard to gressman, ran for president as an inde- positions regularly and opened him to because of a lack of money. We need a know how much money the county can afford to pendent in the Jimmy Carter-Ronald legitimate criticism. credible third choice — that would make commit to economic development. Under the Reagan race. And I also believe Barack Obama is too the two major-party candidates be more Ross Perot founded Electronic Data smart to believe that all the ills facing our thoughtful about what the middle class compromise plan, the county would stash its casino ■ cash away until July 2014; at that point, the money Systems and sold it to General Motors for country will be solved if we can just get really wants and needs. would be available for the next two years for downtown economic development, as Mr. FitzGerald has THE BIG ISSUE envisioned. Starting in July 2016, the money would convert to Do your relationships with friends, families or coworkers deteriorate during election season? use on a countywide basis. County Council members have reserved the right to spend the casino cash before those dates, but we hope they abide by them. As Mr. Schron knows from his business experience, the more cash reserves the county can store, the greater the likelihood that it will be able to make investments of significance in economic development. That’s Mr. FitzGerald’s goal, and it is one to which all county officials should aspire.

TIFFANY GRONN STEVE GILL DARLENE MCKINLEY TIM KALAN Vote Elyria Beachwood Cleveland Shaker Heights No. The only person I really No. I think everybody has their No, because I don’t talk about No. Sometimes (there are) hether you favor a particular political party talk about the elections with is own personal beliefs as to why elections too much at work or some family squabbles, but my husband and we usually they’re going to vote the way among family. for the most part, I try to keep or are as independent in your thinking as agree. they are. I don’t think it affects an open mind. W they come, take advantage of your right to my ability to be friends or to vote. In this particular election cycle, every vote is have frank discussions with my likely to count, not just for candidates but also for relatives. various issues on the ballot. So, let your voice be heard. ➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. 20121029-NEWS--5-NAT-CCI-CL_-- 10/26/2012 10:53 AM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Crisis situations will happen, so plan accordingly

■ It is critical that organizations of What are the most gut-wrenching with a comprehensive monitoring every size heed the crisis planning LETTER scenarios you might have to address program that closely watches news 700 W. St. Clair Ave., Suite 310, advice presented in the Oct. 15, and how likely are they to occur? content delivery platforms — print, Cleveland, OH 44113-1230 Page 17 story, “Reputation-damaging and social media platforms from The threat of natural disasters, broadcast, web, mobile and social. Phone: (216) 522-1383 events occur frequently.” In these coast to coast. Kitchen Aid was right insider trading, medical mistakes, Respond to trends by evolving your Fax: (216) 694-4264 days of 24/7 instant news, where in tweeting an immediate apology. C-level sexual indiscretion and strategy. To be effective, your plan www.crainscleveland.com Twitter and Facebook exponentially When it comes to social media, social media faux pas are enough to must be a living document. Publisher/editorial director: amplify crisis situations, organiza- company leaders no longer have keep any CEO awake at night. And finally, have third-party crisis Brian D. Tucker ([email protected]) tions must be prepared to vigorously the luxury of gathering around a Having a crisis communication counsel audit your current plan as Editor: defend their position in a wide vari- table to discuss strategy. There’s plan is an excellent first step, but it evolves, to make certain there are Mark Dodosh ([email protected]) Managing editor: ety of venues, as well as media outlets. simply no time. can you walk the talk? A plan is no no chinks in your armor. Scott Suttell ([email protected]) Underscoring immediacy, your Often, organizations will dutifully good gathering dust on a shelf — When your organization’s repu- Sections editor: brand can face a significant reputa- create an operational crisis plan, conducting tabletop drills to test tation is on the line, so is your Amy Ann Stoessel ([email protected]) tional challenge in the time it takes but lack a concomitant crisis com- the plan and put your staff through bottom line. Strategic crisis commu- Assistant editor: Joel Hammond ([email protected]) to bang out a feverish 140-character munication strategy. What should the rigors of real-time crisis simula- nication planning is your brand’s Sports tweet. Example: one foolish knee- your organization do? tion will improve your chances of most effective insurance policy. Senior reporter: jerk post from Kitchen Aid’s Twitter First, create a crisis plan with responding effectively when the Stan Bullard ([email protected]) account during the first presidential outside communications counsel real thing hits. Testing is critical in Bruce M. Hennes Real estate and construction debate resulted in negative head- who brings an objective viewpoint making sure your team is ready. Managing partner Reporters: Jay Miller ([email protected]) lines screaming across print, web on your vulnerabilities to the table. Third, keep your ear to the rail Hennes Paynter Communications Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Select Assets of Finance Ginger Christ ([email protected]) Manufacturing, marketing and retailing Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012 Credit unions seek deeper bonds has increased, so too has the aver- Focus on depth Membership growing, age member relationship, the league reported. The metric, which repre- A number of this region’s largest but institutions’ goals sents the total dollar amount of loan credit unions, though, aren’t posting now include usage balances and deposits per member, membership increases. Many of climbed to $12,293 as of June 30 — them attribute the lack of gains to their of diverse services the highest it has been since at least strategy to close inactive accounts June 2002 and up 5.9% from $11,603 in favor of quality, not quantity. By MICHELLE PARK as of June 30, 2011. “What a lot of credit unions are [email protected] “I think that shows that the new starting to do is really aggressively members that are coming in are look at their product penetration,” Credit unions across Ohio are also taking a look at other products the Ohio Credit Union League’s Mr. snaring more new members, or cus- and services the credit unions are Fearing said. “It’s not productive to tomers, than they have for the better offering, taking a look at credit carry a $5 share (deposit) account part of a decade, but mere growth in unions being their overall financial that doesn’t utilize the services of membership isn’t all they seek: A service provider,” said Patrick Harris, the credit union.” number of local institutions are in- league spokesman. The Cleveland-based Firefighters vesting in new systems and services Increasingly, that’s the goal. Community Credit Union opens to entice members — new and old — “Back in the ’80s and ’90s, the roughly 250 to 300 memberships to develop fuller relationships with (boardroom) discussion may have a month, but it also closes about the them. been, ‘We added this many mem- same number monthly, and some- From June 30, 2011, to June 30, bers,’” said Dave Fearing, senior vice times more, executives said. So Salt for Ice Control 2012, Ohio credit unions added more president for credit union support while the credit union’s five-year Bag and Bulk than 28,000 members, bringing total for the Ohio Credit Union League. membership growth is 6.4%, its membership to 2.71 million, the “Today, there’s a comma and it’s membership numbers actually have • Halite Big Savings on Ohio Credit Union League reported also, ‘Well, how many of these new dropped two consecutive second this month. That increase is 47% members have checking accounts quarters. • JiffyMelt Truckload Orders! higher than the 19,000 new mem- and loans and are using our services?’” However, its second-quarter assets • Calcium Minimum Delivery = 1 Pallet bers added between June 2010 and Nationwide, the rate of credit have increased each year since Chloride Forklift Delivery Available June 2011 and is more than three union membership growth from the 2009, according to data from the times higher than the 9,000 added second quarter of 2011 to the Ohio Credit Union League. John S. Grimm, Inc. 1-800-547-1538 between June 2009 and June 2010, second quarter this year was the In October 2011, Firefighters according to the league’s data. fastest in more than a decade, said Community spent about $100,000 Authorized Dealer As Ohio credit union membership Mike Schenk, vice president of on a customer relationship man- economics and statistics for the agement system to help it study Credit Union National Association what happens before accounts go in Washington, D.C. dormant and to target offers to cus- “We think a lot of it has to do with tomers who only have one account Bank Transfer Day and follow-on with the institution. activities,” Mr. Schenk said, refer- “It’s one thing to acquire an ring to the event last November that account — quite another to acquire urged bank customers to switch to a full financial relationship,” said not-for-profit credit unions. “That Michelle McGovern, its chief mar- single event really has snowballed. keting and development officer. It’s created a tremendous amount “Our strategic focus changed from of interest in and awareness of credit quantity to quality.” unions.” Second-quarter membership at Taleris Credit Union Inc. in Brook- With growth comes … lyn Heights was down 32% com- From the early 2000s through 2008, pared to second quarter 2008, in credit union membership growth in part because it, too, has been purging Ohio was pretty flat and well below inactive accounts, said Robin D. the national average, Mr. Harris said. Thomas, president and CEO. The need Becoming one-stop shops has to improve profit margins drives enhanced the ability of credit unions some of the purge, most of which to compete and grow, insiders say. was executed in 2009 and 2010, Mr. GenFed Financial Credit Union Thomas noted. in Akron, which grew its membership 9% in the last year, has added Viable option mobile banking and remote and Although credit union member- mobile deposits over the last couple ship has grown, the slice of the years, said Kim Pallas, vice president U.S. financial assets pie that credit and chief marketing officer. unions command remains only Added Richard Todd, GenFed about 6.5%, the Credit Union vice president and chief operations National Association’s Mr. Schenk officer, “As we have more members said. That figure has grown roughly and more demand, we have the one percentage point since 1992, he ability to have more staff and more noted. services.” Credit union observers are confi- GenFed executives attribute dent their sector’s above-average much of the institution’s growth to growth in recent years is sustain- its charter change in spring 2011. able. With the change, the credit union “I think more and more people went from accepting members only will experience the difference … and from specific employers to accepting word of mouth is a strong motivator,” members from several counties, Mr. Schenk said. including Lorain, Summit and Medina. Firefighters’ Ms. McGovern said Also growing is Cleveland-based she believes growth will be most Century Federal Credit Union, sustainable in the markets where which over the last five years has credit unions offer products a enjoyed a membership gain of nearly consumer could find at, say, Bank 13%, though most of that increase of America. Those that rely on the occurred from 2008 to 2009. That momentum of Bank Transfer Day growth required the institution, likely will not enjoy as much sus- with nearly $329 million in assets, to tained growth, she predicted. become more sophisticated and Still, the Ohio Credit Union efficient in operations, said CEO League’s Mr. Harris doesn’t antici- Sharon L. Churchill. pate the bank angst of recent years To that end, Century Federal a will lift anytime soon, largely couple years ago bought predictive because banks are increasing fees, software that enables it to better he said. Credit unions also are understand the effect of rates and increasing fees, he conceded, but products on its balance sheet, she more often than not they’re charging said. less, he said. ■ 20121029-NEWS--7-NAT-CCI-CL_-- 10/26/2012 10:57 AM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012

Office 28,300 Sq. Ft. Chancellor: Tough times for for-profits continued from PAGE 1 cast to the first quarter of 2013. is a much different institution than the 16035 Industrial Parkway the Higher Learning Commission one the Higher Learning Commis- would say why. The commission was Disputing Harkin’s findings sion had overseen for decades. expected to make its final ruling in According to its website, the As such, Mr. Kinser said, it could February about whether Chancellor Higher Learning Commission has make sense for Chancellor to seek deserved to remain accredited. been Chancellor’s accreditor since out accreditors more in line with the Still, the latest show-cause wasn’t the late-1970s, when the institution university’s current priorities. There lifted without leaving some bruises. was known as Dyke College. The are accrediting bodies, for instance, Because it was handed down on the college changed its name to David focused on distance learning or busi- verge of peak enrollment season, N. Myers College in 1996 and then ness programs. The risk is that Chan- Mr. Daugherty said, Chancellor did- Myers University in 2001. The uni- cellor still could carry the baggage Furnished -- Price far below market n’t hit its enrollment targets as some versity was financially hard-pressed from the times it locked horns with Former PNC/National City Comptroller Building prospective students might have but was bailed out in 2008 by private the Higher Learning Commission. been turned off by the Higher investors, who then converted the “They’re coming in still needing to Ceilings 9 ft. - Bottom of Deck 18’9” (1) Dock Learning Commission’s action. institution into a for-profit enterprise show cause, so to speak, why a new Near to Cleveland Hopkins Airport, between I-480 & I-71 Chancellor projected it would known as Chancellor University. accreditor would want to take them be financially self-sustaining from Kevin Kinser, an academic who on,” Mr. Kinser said. CALL 216-469-6170 [email protected] its operations by December, but the studies for-profit universities at the Chancellor was also one of 30 dinged enrollment numbers forced University at Albany-State Univer- for-profit institutions highlighted in a administrators to adjust that fore- sities of New York, said Chancellor wide-ranging and unflattering report issued last July by Sen. Tom Harkin, an Iowa Democrat, on the for-profit education sector. The report con- cluded that there were signs Chan- cellor was “experiencing a crisis in management as it continues to operate at a loss and has failed to attract YOU CAN MOVE YOUR enough students to generate the revenue it needs to remain solvent.” Mr. Daugherty, however, contends the evidence cited in the report, which took more than two years to compile, is out of date and not a reflection of Chancellor’s current health. Mr. Daugherty said Sen. Harkin’s committee subpoenaed Chancellor for the cited information less than a month after he took the reins of the university in June 2010. It’s a ‘rebirth’ Despite Chancellor’s public hard- ships in recent years, the university is in the midst of a “rebirth,” according to Michele Yurcich, the university’s senior director of marketing and development. Chancellor recently rebranded itself with a new logo and website that Ms. Yurcich said gives the school a “modern” feel. Last year, it also moved from Cleveland’s Midtown area to an office park in Seven Hills off Rockside Road. Chancellor also launched several “niche” academic programs, such as its master’s of management degree in social media, which Mr. Daugherty expects will add steadily to the university’s enrollment, which at present hovers around 400 students. The university in recent months has rolled out a handful of partner- ships with employers and community colleges — such as Eastern Gateway Community College in Steubenville and Mountain Empire Community College in Big Stone Gap, Va. — that will allow students to transition to Chancellor to complete bachelor’s degrees. Such arrangements beyond Northeast Ohio are expected to be a boon for the college’s enrollment, as the school looks to grow in a region where the population remains stagnant. Chancellor’s quest for growth — CITIZENS BANK PAYS SPECIAL ATTENTION TO HELPING LOCAL BUSINESSES GROW. and thus financial stability — comes as the for-profit education business Whether you are looking to expand or upgrade your business, financing from is under duress in the wake of government investigations, intensified Citizens Bank can help you get there. 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OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Seal: Firearms supplies Chemical Solvents sees something special Its customers include Sherwin- Despite cost, regulations, CLE outfit tackles blends Williams Co. and The Blaster Corp. help boost bottom line and its competitors are Univar Inc. By GINGER CHRIST pace to eclipse its record 2011 sales and Nexeo Solutions Holdings LLC. continued from PAGE 3 During the second term of George [email protected] of $70 million. Part of Chemical Solvents’ growth machining equipment ranging from Bush’s presidency, the number of “We see an increased need for in its blended chemical business has lathes to computer-numerically background checks climbed 46% Chemical Solvents Inc. is mixing more and more blend and specialty come from its willingness to perform controlled machine tools. It makes to 12.7 million in 2008 from 8.7 up its sales by focusing on creating chemicals as customers outsource research and development for its a broad range of parts, including million in 2004. They’ve continued specialty blend chemicals rather than because of increasing regulations to customers, which often leads the housings for sensors that go into to rise, hitting 16.5 million in 2011, its old staple — commodity chemicals. deal with hazardous chemicals,” company into new markets. trucks and automobiles, parts for and they’re on track to top that The Cleveland-based chemical Mr. Davidson said. “Many of our customers count on firearms such as the popular AR-15 number this year, according to FBI distributor is investing more re- Increased federal regulations have us to innovate for them,” Mr. Davidson military-style rifle, and couplings statistics, as they’re up for every sources into creating specialty blends, been both a blessing and a curse for said. “We’re constantly growing into that are used to install residential gas month of 2012 so far compared with which in the last two years have Chemical Solvents. While the com- new markets.” meters on new homes. About 60% 2011. represented a growing part of the pany must adhere to stricter regula- Cleveland-based paintmaker Sher- of its business is automotive, and In the world of AR rifles — which company’s business. Its specialty tions on emissions, its customers win-Williams Co. worked with Chem- 20% is firearms parts, Mr. Habe by their very design require compo- blends are custom-made chemical must do so as well. ical Solvents’ R&D team to create a said. nents made to tighter tolerances compounds used in paint thinning, As federal rules make it harder new lower VOC (volatile organic Business has been good since the than many other weapons — the paint purging and metal degreasing, to manufacture blended chemicals, compounds) commercial blending company was formed via the merger ability to make parts that exactly among other things. Chemical Solvents is stepping in to formula. The formula, marketed as of Willoughby-based Arrow Manu- and consistently meet manufacturer In 2010, specialty blends were only take on that business, despite the Sprayon, is used as a cleaner for circuit facturing with Metal Seal and Prod- specifications is a big advantage 20% of Chemical Solvents’ sales. added headache. boards and relay switches, and is ucts in 2011. Mr. Habe said the deal when it comes to growing sales, Mr. Today, that percentage has climbed “It just increases the cost,” Mr. made at Sherwin-Williams’ Diversified was done with $5 million in state Habe said. to 40% and will continue to increase, Davidson said. Brands plant in Bedford Heights. financing that kept the company in Others are sharing in Mr. Habe’s according to Blaine Davidson, vice Because Chemical Solvents “CSI’s people and technical exper- Mentor. The company is on track growth in the firearms market. Wynn president of sales at Chemical Sol- specializes in flammable blended tise have been invaluable resources to to book $30 million in sales this Atterbury, owner of WMD Guns vents. Blending business sales have chemicals, it is better positioned to Sherwin-Williams,” said Mike Conway, year, up 36% from 2011 sales of $22 in Stuart, Fla., makes and coats grown 150% in two years. handle more stringent regulations spokesman for Sherwin-Williams. million, he said. firearms parts for gunmakers and The switch has allowed the 100- than its customers that don’t deal Chemical Solvents in August Employment is growing along other parts makers such as Metal person Chemical Solvents to hire 10 with them on a daily basis, Mr. made a $500,000 investment in new with sales, he said, and the company Seal. Mr. Atterbury said his company people in the last two years and to Davidson said. Chemical Solvents equipment, buying a multishaft mixer currently employs 214 people, up has thrived since he opened it 18 be on the lookout for two more has a dedicated team dealing with and more storage tanks to handle from 135 about one year ago. months ago, and that he’s been employees. And, while Mr. Davidson regulations to ensure the company increased chemical blend business. watching the gun business grow for refused to share annual revenue, he remains compliant and performs Good aim The company annually invests $500,000 longer than that. did say the company this year is on sampling, Mr. Davidson said. into new equipment. ■ Both of Metal Seal’s major “I’ve been in the industry since product lines — automotive and 2003. Especially with modern firearms parts — have been growing sporting rifles, there’s been a very rapidly, but the firearms parts busi- rapid growth phase since then. ... ness is by far the fastest-growing We’re seeing a strong resurgence of portion of his business, Mr. Habe handguns and sporting rifles,” Mr. said. The company makes bolt Atterbury said. assemblies for rifles made by Sturm So far, 2012 is no exception, he Ruger & Co. and by about 15 other said. makers of versions of the AR-15, “Ruger has already surpassed a which is the semi-automatic, civil- million guns for the year in sales. ian version of the military’s M-16 The market’s been very strong,” Mr. rifle. Atterbury said. Metal Seal started making gun Newer is better parts in 2009, but already this year its firearms sales are on track to top Mr. Habe said he’s also benefiting $6 million, Mr. Habe said. Firearms from investing about $4 million in enthusiasts and those in the indus- new machines this year, most of try largely credit concern about gun it precision CNC machining equip- control — which tends to rise when ment. a Democrat is in the White House — “The other guys have older ma- with some of the increased demand chines, so they can charge a lower for civilian weapons. hourly rate,” Mr. Habe said. “But we Gun sales have spiked since can hold tighter tolerances than our President Barack Obama took office competition because we have newer and the National Rifle Association technology.” “Like” your favorite honoree profile on our Facebook warned its members he would be Meanwhile, Metal Seal’s automo- the “most anti-gun president in tive business has come back strong page. The honoree that receives the most likes will American history.” So far, that’s from the industry’s 2009 crash thanks receive $500 toward the charity proved to be a Chicken Little warning, in part to rising automaker volumes. but it hasn’t slowed demand for But the company also has bene- of choice. weapons. fited from updated vehicle designs, But the president is likely not the with newer vehicles requiring more only reason for the spike in demand. sensors that use Metal Seal hous- With shooting sports gaining in ings. popularity, along with concealed As pollution control and mileage carry permits for handguns, the standards become more stringent, number of background checks Mr. Habe expects to see even more requested by Americans attempting growth from the automotive sector. to buy guns from licensed dealers “They’re putting more and more already was rising when President sensors on automobiles, and that’s Obama took office. good for us,” he said. ■ LIKE GET DAILY NEWS ALERTS FROM CRAIN’S! 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Register for free e-mail alerts and ■ Daily headlines: Crain’s-produced receive: news and blog items from the day ■ The Morning Roundup: The ■ Small business, energy and day’s business news from Ohio’s staffing/HR reports: Weekly daily papers updates on each industry, including ■ Breaking news alerts blogs SIGN UP NOW AT: CrainsCleveland.com/register www.facebook.com/CrainsCleveland ■ Crain’s on Twitter: @CrainsCleveland ■ Crain’s on Facebook: Facebook.com/CrainsCleveland 20121029-NEWS--10-NAT-CCI-CL_-- 10/25/2012 4:27 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012 Auto loan delinquencies Grants: Focus on quickness to market

continued from PAGE 1 institutions — submitted plans stating Changes afoot rise slightly at big banks direction of the Third Frontier pro- how they would work together to The proposed budget also would gram, said Dr. Chagnon, whose office commercialize new technologies. make a few other changes: By JIM HENRY mist for credit bureau Equifax. is part of the Ohio Development The commission also made one ■ It would set aside $15 million Automotive News “I do not expect higher defaults Services Agency. $60 million grant in 2006, to the for companies and other organiza- over the next two years at least,” other The agency, which until recently Global Cardiovascular Innovation tions that want to create “a critical Delinquencies on auto loans than traditional seasonal increases, was called the Ohio Department of Center, which it labeled a “Wright piece of infrastructure that could and charge-offs for bad loans are she said in an email this month. Development, allotted $50 million Mega-Center of Innovation.” Today, be shared,” Dr. Chagnon said. For still quite low, though a trio of the Wells Fargo said its auto-loan for larger Third Frontier investments the cardiovascular center’s 50,000- instance, the commission last week biggest banks in auto lending originations were $6.3 billion for the because multiple commission mem- square-foot headquarters, located awarded $6 million to Honda, showed a slight uptick in either quarter, up 20% from a year earlier. bers have voiced support for the idea on Cedar Avenue across from the which will use the money to resur- delinquencies, charge-offs or both Delinquencies of 30 days or more of backing bigger projects. Cleveland Clinic, houses several face a high-speed test track that when they released quarterly earnings on indirect auto loans were 1.4% of “They were for (making) a large, young companies commercializing could be used by other auto-makers this month. the total, up from 1.3% a year earlier, game-changing investment,” he said. biomedical technologies. or even the government. That grant Some analysts had predicted the bank said. Charge-offs were 0.5%, The smallest grant the commission The cardiovascular center claims provided “a perfect example” of delinquencies were bound to bottom down from 0.7%. likely would make under its new to have created, attracted or capital- how another new program — the out soon as auto lenders made more According to Experian Automo- Technology Commercialization Cen- ized 40 companies and supported proposed Technology Asset Grants subprime loans and competition tive, Wells Fargo was the second- ters program would be around $10 the creation of 500 jobs in Ohio, program — would work, he said. forced lenders to loosen standards. biggest U.S. auto lender in the second million, though the commission also according to a recent report it pro- ■ The budget included $1 million Still, any upticks in delinquencies quarter after Ally Financial. could decide to give all $50 million to vided to the state. That project will for marketing, an amount that and charge-offs were considerably Chase’s auto lending unit, Chase one project — if the right one comes serve as a model for the Technology commissioners are thinking about smaller than the rise in automotive Auto Finance, reported its auto-loan along, Dr. Chagnon said. Commercialization Centers program, increasing, Dr. Chagnon said. Though lending at the three banks: Wells originations were $6.3 billion in the Dr. Chagnon said. The Wright stuff the state of Ohio for years has pro- Fargo, Chase and Capital One. third quarter, up 7% from a year “What appealed to us is how moted the Third Frontier through From a dealership point of view, earlier. Delinquencies of 30 days The program would bear a resem- many startup companies were the media, the commission wants to slightly higher delinquencies and or more rose to 1.1% of the total blance to the Wright Centers of created out of the GCIC,” he said. do more traditional marketing to defaults are probably a positive sign. from 1.0% a year earlier. Charge- Innovation Program. Through the However, the new program would attract investors, entrepreneurs and Looser standards mean it’s easier to offs doubled to 0.7%. Chase was the Wright Centers program, the Third differ from the Wright Centers pro- companies to the state, he said. get customers financed. In the long No. 4 lender overall in the second Frontier Commission in its early gram in a few key ways. ■ The budget scrapped two pro- run, though, higher delinquency rates quarter, Experian said. ■ years awarded grants ranging from For one, the new initiative, if grams that never got off the ground: could encourage lenders to tighten $11 million to $28 million to 13 approved, would focus on developing a $10 million Growth Fund that would the screws on auto loans again. Jim Henry is a correspondent for groups of collaborators. The groups technologies that could be turned have gone toward the creation of That time is still a long way off, Automotive News, a sister publica- — which consisted of colleges, busi- into products fairly quickly, Dr. investment funds designed to help said Amy Crews Cutts, chief econo- tion of Crain’s Cleveland Business. nesses, hospitals and other research Chagnon said. Some previous Wright more established tech companies Center projects focused on oppor- scale up, and a $1 million Micro Loan tunities that were “further from the Fund, which would have targeted market,” he said. Thus, according to smaller projects. metrics used by the commission, Demand for the Growth Fund the Wright Centers program hasn’t dollars dried up because the money created as many jobs as some other was to be awarded in conjunction Third Frontier programs that focus with grants from a similar federal on near-term opportunities. program; investors have had trouble Plus, the Wright Centers program accessing the federal money, Dr. focused on physical infrastructure Chagnon said. The Micro Loan Fund because its grants typically included was nixed because it wasn’t a big state dollars reserved for capital im- priority — and because the Third provement projects. The Technolo- Frontier already has “an awful lot of gy Commercialization Centers pro- programs on the books,” he said. ■ Take the work out of your gram wouldn’t have that limitation. company’s voice and data plan. Peering over the fiscal cliff A post election analysis: What is the potential impact on business? ROUNDTABLE EVENT Every business has different communication needs. Wednesday, November 14, 2012 That’s why Cox Business offers customizable 11:30 a.m. to 1:00 p.m. EST services that are right for you. Get fast, reliable Location: McDonald Hopkins, Fifth Third Center Internet and feature-packed digital phone for 600 Superior Avenue, East, Suite 2100 “Highest Customer Satisfaction among Data Service Providers for Small/Midsize Businesses” Downtown Cleveland a bundle that just makes sense. RSVP: mcdonaldhopkins.com or call: 216.348.5400 to register. Cox Business Bundle $79.99 /MO*

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*Offer valid until 1/1/3. Call the number listed for important offer details. ©2012 Cox Communications, Inc. All rights reserved. Cox Business received the highest numerical score among small/midsize business data service providers Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach in the proprietary J.D. Power and Associates 2012 Major Provider Business Telecommunications Data Services StudySM. Study based on 5,143 total responses measuring eight providers and measures opinions of small/midsize businesses (companies with two to 499 employees). Proprietary study results are based on experiences and perceptions of businesses surveyed in October 2011 and February 2012. Your experiences may vary. Visit jdpower.com. mcdonaldhopkins.com 20121029-NEWS--11-NAT-CCI-CL_-- 10/25/2012 3:44 PM Page 1 SPECIAL REPORT THE TRANSFORMATION OF EUCLID AVENUE Despite progress, still more to be done Work zones continue to replace dead zones

By STAN BULLARD and JAY MILLER [email protected], [email protected]

espite the millions poured into projects ranging from the new Museum of Contemporary Art Cleve- Dland to the redo of long-neglected commercial buildings near Public Square as lofts, don’t look for construction crews to disappear from Euclid Avenue any time soon. Consider the new developments of the last few years the opening salvo in efforts to revive the street. Weighing Euclid’s current condi- tion, Cleveland architect Jonathan Sandvick said, “There is an enormous STEPHEN HERRON/PLAYHOUSESQUARE ABOVE: Present-day Euclid Avenue, looking east. BELOW: Roughly the same view, from about 1922. For more photos, go to www.crainscleveland.com/EuclidGallery. amount to be done. There is more to be done than is done.” His proof: parking lots downtown that give way to fields of empty land east of East 55th Street where buildings once stood. A ‘great American street’ rises Look in the short term for some major projects to open, among them the $27 million Courtyard by Development of HealthLine helps kick off revival of avenue that city’s elite once called home Marriott on Cornell near Euclid this winter and the $50 million Tinkham Veale University Center at Case By JAY MILLER and STAN BULLARD and CEO Jake Orville said he first could have happened, there had Western Reserve University’s [email protected], [email protected] looked at a number of suburban been decades of conversations and campus in 2014. Look long-term for locations. Then he was introduced to collaborations that focused on a new others, such as Cleveland State n mid-2011, Cleveland HeartLab Fred Geis, a partner in the Geis Cos. transit line and urban renewal. University’s new Center for Health Inc. rebuffed a sale that would real estate firm. Its Hemingway Those meetings — 2,000 in all, Professions, a $47 million addition have moved the young company Development affiliate was beginning beginning in the 1980s, according to Euclid at East 22nd Street. to Massachusetts, instead construction on the MidTown Tech to Joe Calabrese, general manager of Still other, bigger plans may take Ideciding it would stay put in North- Park at 6700 Euclid Ave. the Greater Cleveland Regional years to reach fruition, if they do. east Ohio. “It was a perfect match,” Mr. Transit Authority — are the back In 1994, Euclid from the Inner Belt The only question was: Where? Orville said of the new 128,000- story to Mr. Orville’s 2010 decision. near Cleveland State University to Having grown from eight employees square-foot building that ultimately First, there was a discussion of a Public Square was dubbed a dead to 80 in less than two years, the attracted the company to Euclid subway under Euclid, then a trolley zone. Now, the downtown dead zone startup needed to leave its incubator Avenue. line. Those options were financially has diminished to a cluster of eight space at the Cleveland Clinic. President But before that decision ever See RISE Page 17 See NEXT Page 14

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12 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: CORRIDOR OF CHANGE OCTOBER 29 - NOVEMBER 4, 2012 CORRIDOR OF CHANGE A looklook at how 10 Euclid Avenue locations — both ooldld andan new — are helping to link the corridor’s ppastast ttoo its future.

1 HealthLine, Public Square currently is being used for parking. “Euclid Avenue has become “I always knew we had the core to become a very dynamic area Starting at Public Square, the 6.8-mile, 58- more of a destination,” Mr. Coquillette said. “I now feel very … it really took private and public working together.” Today, stop HealthLine passes through and con- good about being located here.” PlayhouseSquare, along with its development arm, is helping nects seven of the city’s districts: down- to drive much of the change in the surrounding neighborhood, town, PlayhouseSquare, Cleveland State, helping to create office, retail and residential space. In its most Midtown, Fairfax, University Circle and 3 Cowell & Hubbard recent project, PlayhouseSquare partnered with Cleveland East Cleveland. Considered a bus-rapid Restaurateur Zack Bruell still has patrons State University and the Cleveland Play House for a $32 mil- transit, the 4-year-old RTA line is largely come into his newest eatery reminiscing lion capital campaign to create three new theaters in the Allen credited with many of the infrastructure improvements that about the purchase of an engagement Theatre complex, as well as a new concourse from the garage. have helped spark the corridor’s revitalization. Indeed, during ring or other piece of jewelry. Once home a recent HealthLine tour for a transit contingent visiting from to the iconic Cowell & Hubbard jewelers, 5 Mather Mansion Albuquerque, N.M., RTA general manager Joe Calabrese ticked the building was “in shambles” when Mr. The 43-room Mather Mansion on the cam- off all the developments taking place. “People are investing in Bruell opted to open his fifth Cleveland pus of Cleveland State University is just as Euclid Avenue when they had not invested in Euclid Avenue in restaurant in the theater district space. “I could see what the gorgeous today as it must have been in years,” Mr. Calabrese said. bones were,” he said. Of course, some of those old bones were 1910 when it was built for more than $1 tougher to handle than others: A safecracker was needed for million — reportedly the most expensive the 6-foot-tall, 6,000-pound safe found in the old vault. Mr. Bru- home on Cleveland’s Millionaires Row. 2 Union Club of Cleveland ell said Euclid Avenue is probably the most important street in Home to industrialist Samuel Mather (his The Union Club for more than a century Cleveland. “This is the spine of the city,” he said. “It’s important wife, Flora, died before construction was completed), the house has been the place to be for the city’s that this corridor get back to what it was.” features the detailed craftsmanship typical of its time, much of movers and shakers — and for the en- which is preserved today. Owned by CSU since the 1960s and tirety of that time, the organization has 4 PlayhouseSquare empty since 2011, the administration now hopes to see the called Euclid Avenue home. “There’s hard- With 1 million visitors annually attend- structure converted into a boutique hotel with 50 to 60 guest ly a figure in Cleveland’s past that wasn’t ing nearly 1,000 performances, Playhouse rooms. The plan had been to have the project completed by a member of the club,” said William H. Square is the second-largest performing fall 2013; however, that timeline may be pushed back as the Coquillette, today’s club president. The organization’s current arts center in the country. That’s a big university is in the midst of firming up plans with a potential 85,000-square-foot home was built in 1903, and it now features turnaround for a group of theaters that developer, said Joe Mosbrook, the school’s director of strategic such amenities as overnight guest rooms, meeting spaces, din- nearly met the wrecking ball. “I’m an opti- communications. “The attention to detail is absolutely impec- ing areas, a ballroom and a fitness center. With an eye to the mist,” said Art J. Falco, president and CEO, cable throughout the entire place,” he said. future, the club recently purchased the lot next door, space that who started with PlayhouseSquare in 1985 as finance director.

East 9th CLEVELAND N STATE Chester 6 7 5 Euclid 2 3 4 1 Prospect

East 55th

1SPGJMFTCZ"NZ"OO4UPFTTFMr.BQCZ-BVSFO3BGGFSUZ 90 1IPUPTCZ4UFQIFO)FSSPOr7JEFPTCZ4UFWF#FOOFUU 20121029-NEWS--13-NAT-CCI-CL_-- 10/25/2012 4:14 PM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 SPECIAL REPORT: CORRIDOR OF CHANGE CRAIN’S CLEVELAND BUSINESS 13

6 Agora complex the location’s long-term benefits, including access to free- cluding the Community of St. Peter. Richard Y. Pace, CEO Fred Geis, a partner in Streetsboro- ways and a strong infrastructure. And, of course, there was of Cumberland Development LLC, purchased the Baker based Geis Cos. and Hemingway a little bit of faith in the corridor’s potential. “There was a Electric Building in 2006, a decision he said was motivated Development, is working to resur- glowing vision of what Euclid Avenue could be,” she said. in part by the Euclid Corridor investment. As one who sees rect the onetime Agora complex in “It’s been exciting to witness.” potential in locations that allow workers a place to “live, a joint venture with the nonprofit work, play,” Mr. Pace said the current growth on Euclid development organization MidTown Avenue fits the model. “That’s what the promise is of the Cleveland. A dozen new tenants, and 8 Dunham Tavern Museum health-tech corridor,” he said. some 50 people, already work in the The Dunham Tavern Museum stands structure since Hemingway and MidTown partnered ear- as a monument to the past — days lier this year. The complex started life as the Metropolitan when weary stagecoach travelers 10 Museum of Contemporary Art Cleveland Theatre, an ornate vaudeville house, in 1913. Later, rock would stop in for a moment’s rest — The newest jewel on Euclid Avenue, ‘n’ roll greats such as the Beatles and the Rolling Stones yet it’s contributing to the makeup of the Museum of Contemporary Art performed in the 1,500-seat WHK Ballroom or roamed today’s corridor. As part of a $1.4 mil- Cleveland, is using its location as a the halls when the building was home to radio stations lion project, the Dunham Tavern Mu- springboard to its own future. Lo- WHK and WMMS. Today, small suites go for as little as $600 seum this year acquired and demolished a deteriorated cated on what executive director monthly to land early-stage tech ventures and minority- industrial building adjacent to the museum. The 2.2-acre Jill Snyder calls “the last best loca- owned enterprises as tenants. And, in deference to its mu- parcel, part of the original Dunham tract, will be preserved tion” on University Circle, the nearly sic heritage, fledgling radio station WLFM 87.7 has moved as green space for public use. Bill Ruper, board president, 34,000-square-foot, four-story building is 44% larger than into the building, and shows still are performed in the said the creation of the HealthLine helped tremendously the museum’s previous rented space. Ms. Snyder said with concert venue portion of the complex. in rejuvenating the area around the circa-1824 structure, the move, the museum’s annual budget will go from $1.6 which at one point was at risk of being torn down for a million to $2.6 million, with earned income increasing 7 Pierre’s Ice Cream used car lot. “Back in the 1980s, no one really wanted to be from 7% to 25% of the budget. Additionally, yearly at- Since 1932, Pierre’s Ice Cream has here,” he said. “We had the vision to see that someday the tendance is expected to increase threefold from 20,000 remained within three miles of its whole area was going to turn around.” to 65,000, driven largely by pedestrian traffic, and 10 full- original location near East 82nd time equivalent employees have been added. “I’m so in Street and Euclid. One might even love with this building,” Ms. Snyder said. “This was a build- say the latest addition to its campus 9 Baker Electric Building ing that was created against all odds.” — a 35,000-square-foot factory that The electric vehicle charging station opened in June 2011 — is the cherry that sits outside the Baker Electric Building is both functional and sym- on top, proof of the ice cream maker’s commitment to the ON THE WEB: corridor. Pierre’s current Euclid Avenue site was chosen as bolic of the building’s history. In the its headquarters home in the 1990s, after long-range plan- early 1900s, it served as a showroom Hear more on video about how these sites ning and an exhaustive search for “the optimum location,” for the Baker Motor Vehicle Car Co.’s are fitting into the future of Euclid Avenue. said Shelley Roth, Pierre’s president. A site selection made electric cars. Today, the space is being www.CrainsCleveland.com/EuclidGallery long before revitalization plans were taking hold, Ms. Roth used by a number of technology companies, such as stem said the company saw beyond boarded-up buildings to cell firm Arteriocyte Inc., and as well as other tenants, in-

East 105th 10

7 8 9 UNIVERSITY CLEVELAND CASE WESTERN HOSPITALS CLINIC RESERVE Carnegie

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HISTORIC PRESENT DAY RESIDENTIAL 20121029-NEWS--14-NAT-CCI-CL_-- 10/25/2012 3:44 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: CORRIDOR OF CHANGE OCTOBER 29 - NOVEMBER 4, 2012 Developers try to reverse retail decline Next: Work driven by By STAN BULLARD revival of East Fourth as a restau- seeking tenants and approvals soon [email protected] rant and entertainment center and have the redo done in late 2013. county move, hospitals with upper-floor lofts. Retail space across from the et ready for some new In the case of the Old Arcade, Arcade, at Colonial Marketplace, continued from PAGE 11 the underpass already is under drives in the effort to which Skyline bought at a sheriff’s also is amid a rethinking. buildings from East 12th to East way; MidTown calls it “Penn reverse Euclid Avenue’s foreclosure sale last December, the Richard Y. Pace, CEO of Cleveland- Ninth streets. Square” to recall a train station long, sad retail decline. upper floors will remain a Hyatt Re- based Cumberland Development that once operated there. GGil Blutrich, president of Toronto- gency, though it will be renovated. LLC, recently decorated the Colonial The county’s role Just west, Fred Geis, a partner in based Skyline International Devel- Mr. Blutrich said his firm dropped Marketplace’s halls with white Three of the largest properties Streetsboro-based Geis Cos. and opment Inc., said his firm is preparing the idea of installing apartments in boards for party-goers to list retail there are in play, though, thanks to Hemingway Development, is plans to recast the retail section of part of the hotel because hotel ideas during a gathering to learn Cuyahoga County’s plan to shed working to resurrect the onetime the Hyatt Regency Cleveland at the occupancy is up, and he expects what retail uses downtown dwellers unused real estate and consolidate Agora complex in a joint venture Arcade as a boutique specialty more gains after the opening of the would support. Mr. Pace just com- downtown county offices. with MidTown. On the eastern side center with a culinary focus. medical mart and convention center. pleted a master lease for Colonial That puts back on the market of the underpass, acres may some- “The idea is to make it a four- He also would like to improve the Marketplace’s first-floor retail area. the county-owned Ameritrust day yield build-to-suit structures season extension of East Fourth look of the Arcade’s two retail floors, The Colonial Marketplace, which complex, which includes the bank for growing companies. Street,” said Mr. Blutrich, referring which have been dogged for years by joined the Euclid and Colonial rotunda, a 27-story empty office Nearby is MidTown Tech Park, a to Cleveland-based MRN Ltd.’s high vacancy. Skyline aims to start arcades when their upper floors tower and the building at 1010 suburban-style flex building Hem- became a Courtyard by Marriott hotel Euclid Ave., as well as adjoining ingway and the family of high-pro- in 2001, also has battled vacancy. buildings on Prospect Avenue. file property owner John Coyne Mr. Pace said he plans to employ a Two proposals filed with the and his son, realty broker Terry lesson he picked up years ago as a county by Landmark Management Coyne, crafted for an urban site at Warehouse District landlord: Be flexi- of Cleveland, the only developer to 6700 Euclid. ble on rent or terms rather than have publicly discuss its bid, call for a The building and Midtown were high-cost, but empty, space. $100 million redo of the tower as chosen as Geis’ foray into the urban MRN, which also has Euclid FOR SALE a hotel and apartments, and 1010 Cleveland market because the storefronts such as the Corner Alley Euclid to lofts. Across the street, highway access, visibility and bowling alley, recently leased one the Huntington Building, 916 Euclid empty land create building oppor- OR LEASE of its last vacancies to a Chipotle. Ave., also is in the mix. However, tunities. Mr. Geis said his firm’s It is the second national food its owner, a company led by Mia- investments there total $70 million. concern this year on lower Euclid, mi-based Optima Management, And, while he looks forward to following a Potbelly Sandwich hopes to see it become a potential adding more new or renovated Shop, which moved into a store- home for the county’s consolidat- buildings, he plans to pace them so front at Norfolk, Va.-based Harbor ed office of 200,000 square feet. other developers can finish and Group’s 515 Euclid parking garage. What’s next for the Huntington, lease their projects. Allen Wiant, vice president of downtown’s largest office property “There is demand,” Mr. Geis said, strategic investment at Playhouse- by square footage, depends on the “but there is not unlimited demand.” Square Real Estate Services, has the county office-space competition. completed an exhaustive inventory Thinking big Chaim Schochet, investment of retail spaces downtown to give executive at Optima, is coy about Farther east, developers hope to prospects an idea of what retail the company’s plans. break new ground in more ways spaces are available — even if they “You’ve got to assume we are than one with Intesa, a $110 million DZDUGZLQQLQJRIÀFHVSDFH are outside the PlayhouseSquare going after the county,” Mr. Scho- office, retail and apartment project 3200 Euclid Avenue, Cleveland, OH nonprofit development group’s chet said. “Beyond that, I can’t say in a twin, 10-story tower complex. 6)IRUVDOHRUOHDVH /RFDWHGLQWKHKHDUWRI0LGWRZQ7HFK Theater District domain. anything else about the building’s Proposed by Tony Panzica and Peter 6XLWHVUDQJLQJIURP6) &RUULGRUZLWKDIURQWURZVHDWWRWKH “I’d like to see them land on VHFXUHSDUNLQJVSDFHV (XFOLG+HDOWKOLQH future. Otherwise, everything is still Rubin, respectively principals of Euclid,” he said. “This collaboration on the table.” Those alternatives Panzica Construction of Mayfield For more information contact: among property owners is a big might include a hotel or residential Village and Coral Co. of Cleveland, Conor M. Coakley | CBRE, Inc. | T 216 658 6123 | [email protected] change from 20 years ago.” ■ use as well as trimmed-down offices. the developers won a University Also able to accommodate the Circle Inc. competition to pursue county is the Halle Building, 1201 the Circle Drive site. Euclid Ave., which owner Forest City Intesa might rise just east of Enterprises Inc. has studied convert- Uptown and border a building that ing to apartments. The Cleveland- the Cleveland Institute of Art plans based developer also filed a bid with to build next to its just-renovated the county — for what, it won’t say. Ford studios. Plans are afoot to restore the Mr. Panzica said talks are under other four structures as lofts or hotels way with several prospective office with first-floor retail. A Kimpton tenants. Commitments to lease 50% Hotel is bound for the most promi- of the planned 131,000 square feet of nent of the group, the Schofield offices are needed to win financing. Building on the southwest corner Intesa’s first floor will offer retail of East Ninth and Euclid. space, continuing the retail offer- If those projects go, said Tom ings of Uptown. Yablonsky, vice president of Down- Expect institutions to continue town Cleveland Alliance and exec- big-ticket alterations to Euclid as utive director of Historic Gateway well. The Cleveland Clinic Founda- Neighborhood, they will solidify a tion, which acquired the Cleveland new vision for lower Euclid as a Play House building two years ago, hospitality and residential corri- will likely use its hallowed theaters dor. as auditoriums. The Play House’s parking lots may yield an education- Meeting demands related building for Clinic employees The next major transformation and a parking garage. in the works is at and near the That’s the word from Bill Peacock, Euclid and East 55th Street railroad CCF’s chief of operations. Although underpass in Midtown. clinical needs and Clinic finances Although the HealthLine project will drive use and size of new updated the streetscape, the railroad buildings. Mr. Peacock counts six underpass remains foreboding and translucent blocks that represent makes it harder to see all of Euclid potential future buildings on Clinic as one development area. grounds visible from Euclid. That is Jim Haviland, executive director huge; the Clinic now operates a of MidTown Cleveland, said the dozen buildings on Euclid. nonprofit is “putting our full court University Hospitals has put press” on to change the forlorn site finishing touches on a $1 billion and iconic bridge. building program that, among It is seeking a grant to study con- others, includes Seidman Cancer nectivity and development potential Center on Euclid. However, Steven for the underpass and pave the way Standley, UH chief operating offi- for state and federal funds. Plans call cer, said it may lease office space for painting the bridge, lighting up at Intesa. the underpass and using some space “We’re just maxed out all the as a “food truck plaza.” Rebranding time here,” Mr. Standley said. ■ 20121029-NEWS--15-NAT-CCI-CL_-- 10/25/2012 4:07 PM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 SPECIAL REPORT: CORRIDOR OF CHANGE CRAIN’S CLEVELAND BUSINESS 15 Residential buildup has Euclid feeling a lot more like home Property owners try to keep pace with growing demand for apartments By STAN BULLARD buildings line Euclid downtown, a ON THE WEB [email protected] profusion of two- to four-story buildings survived from the 19th For smart phone here is a new hot ticket on century. users, scan this QR, Cleveland’s Euclid Avenue. “It still had the scale and look of or “quick response” Ari Maron, a partner in an old commercial street,” Mr. code, with any QR the family-owned realty Yablonsky said. “It’s very pedestrian- code reader to view photos of some Tdeveloper MRN Ltd., reflects that friendly. Give life to the upper residential options along Euclid. in the mid-2000s, acquaintances floors, and the (street-level) floors phoned him directly in bids to come back.” contemporary architecture also score scarce seats at shows at the Ironically, the idea of converting breathes new life to Euclid with a House of Blues in MRN’s East old Euclid buildings to residential classic concept: first-floor store- Fourth Street Neighborhood. use was crafted in a study the city fronts underneath apartments. “Since mid-2010,” Mr. Maron of Cleveland commissioned in MRN pursued Uptown with said, “they’ve been calling to ask 2000 as a way to bolster the office CWRU and UCI because it decided STEPHEN HERRON th me to try and help them get into an market, Mr. Sandvick said. to follow public transit lines from The Statler Arms, on Euclid Avenue at East 12 Street, is one of a growing list apartment.” downtown. Mr. Maron said Uptown of residential options. With downtown apartment oc- History in the making offered a walkable neighborhood cupancy at an incredible 97% this The next step came in 2006 as all with downtown-like attractions. University Circle “a wonderful said Circle East was possible June, a little pull can help. Luckily, of lower Euclid became a historic The residential component of the pocket” in the city because of its because the HealthLine fixed up the MRN has 87 suites going into the district so buildings could qualify project is 80% leased, MRN said. strong demographics. street’s look. His prior project at Rosetta Building, 610 Euclid, that for federal historic tax credits Among other pioneering projects Another project farther east at University Circle, the renovation of will be available next year. Earlier because they contributed to the near Euclid at University Circle are University Circle, Circle East, is Park Lane Villa as market-rate apart- this month, it also opened another district as a whole. That meant the first 12 units of 59 at Fairview fully leased after a July opening. ments, catered to University Circle’s 140 at the Uptown mixed-use retail buildings would not have to Park-based WXZ Development Since the project used federal own strengths. and residential complex on Euclid. qualify individually for credits. Inc.’s Hazel 8. WXZ also plans more funds, tenants must meet moder- “This is an area with great job The last few years have spawned That opened the door for some rentals near its recently sold-out ate income restrictions, but can concentration and job creation and an incredible change in context for major projects, such as the onetime Circle 118 condos at East 118th rent townhouses that cost little housing,” said the Boca Raton, development on Euclid Avenue, be- Taylor department store to The Street and Euclid. $200,000 to build for as little as Fla.-based Mr. Finch. “I believe tween the city’s two largest employ- Residences at Six Six Eight apart- WXZ is long-established in the $960 monthly. Cleveland is one of the best-kept ment centers — downtown and Uni- ments, which had been so altered suburbs, but CEO Jim Wymer called Wes Finch, CEO of Finch Group, secrets in the country.” ■ versity Circle. in two office makeovers it would Chief among the drivers of this not have won historic tax credits. transformation is the Greater Planners and officials added an Cleveland Regional Transit Au- extra incentive. Ohio’s new state thority’s HealthLine. Along pret- historic preservation tax credit tied-up Euclid, new rentals hit the helped developers as lending tight- market as the baby boom echo ened up. Thirteen residential generation, with a taste for urban projects between Cleveland State life, sought housing as the attitude and Public Square are among 24 toward home ownership soured. there that have received such credits Chris Sledzik, a resident of since their 2007 inception, accord- Statler Arms Apartments, 1127 ing to a study by Historic Gateway Euclid Ave., commutes to a subur- and the Historic Warehouse District ban job as an account executive at Development Corporation. IN THIS CASE, IT ACTUALLY WAS ROCKET SCIENCE. Marcus Thomas LLC and sums up K&D Group, the Willoughby- the change succinctly. based owner of more than 9,000 “There was a whir that became a apartments in Northeast Ohio, Practicing law can be complicated, but it’s not rocket science. Unless, of buzz and is now becoming a roar,” undertook the project at 668 Euclid the 27-year-old says of young pro- as the street went through its course, the case has something to do with the Space Shuttle, you’re defending fessionals flocking downtown. The bus/rapid rejuvenation. At a cost Tallmadge native notes the rent is of $65 million, it was one of the last government contractors accused of violating the False Claims Act, and there’s more than a former Akron house; large projects undertaken before still, there are benefits, such as the the financial collapse in 2008. about $2 billion at stake. Then, everything is rocket science. At Vorys, we have a dining and entertainment options. Now, as lenders start funding practice group that focuses on the False Claims Act. It’s all they do. They have “When I look out the window at again, K&D is undertaking one of the lake in the morning, I know it’s the newest residential projects the depth of knowledge to take on the complicated cases. They’re not afraid to worth it,” he said. near Euclid, converting offices in the Hanna Building Annex on East JRWRWULDO$QG\RX·OOÀQGWKHPDOOLQRQHSODFH$OODWRQHODZÀUP9RU\V Euclid wasn’t built in a day 14th Street to 102 apartments. Doug Price, K&D’s CEO, said Cleveland’s residential revival Hey, it’s not rocket science. Oh, wait... there is a simple reason his firm was more than just good fortune. came back for another project “This city has made its own luck,” downtown. said architect Jonathan Sandvick, “There’s just no demand for whose firm specializes in preserving suites in the suburbs,” Mr. Price old buildings. said. “However, in downtown you Before the HealthLine opened in are adding new residents every day.” 2008, the city had spent decades fostering the downtown residential All on board population. Mechanisms for redeveloping Cleveland State and Case

commercial buildings as apartments Western Reserve universities also Higher standards make better lawyers.® were painstakingly worked out after embraced goals to reshape the 1992. Developers, accountants, environments on Euclid near their To read more on our work involving the False Claims Act, visit vorys.com/falseclaims. lenders and city officials learned campuses, which added housing how to cobble together federal and commercial uses as well as historic tax credits and multiple college buildings. Additionally, money sources to finance projects. University Circle Inc., the nonprofit That expertise bore fruit on development group that serves the Euclid in anticipation of the cultural, educational and medical HealthLine and in the years since. hub, set a goal of adding 1,000 Additionally, Tom Yablonsky, a units of housing; it’s now half there. vice president of the Downtown Where adaptive reuse provided Cleveland Alliance and executive the mechanism for downtown, director of the Historic Gateway University Circle lacked the same Neighborhood nonprofit, said stock of old commercial buildings, Euclid’s status as the city’s historic so construction came to the fore. Vorys, Sater, Seymour and Pease LLP main street played a big role in Among the results is Uptown, 1375 East Ninth Street 2100 One Cleveland Center Cleveland, Ohio 44114 how things shook out for the new which MRN built on both sides of 106 South Main Street Suite 1100 Akron, Ohio 44308 bus/rapid transit line. Euclid Avenue at Mayfield Road in Although skyscrapers and tall a deal with UCI and CWRU. The 20121029-NEWS--16-NAT-CCI-CL_-- 10/25/2012 4:00 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: CORRIDOR OF CHANGE OCTOBER 29 - NOVEMBER 4, 2012 HealthLine serves as catalyst Economic development along Euclid follows debut of hybrid transit By JAY MILLER Australian transit officials seated ON THE WEB [email protected] on plush blue seats. The Aussies, like transit officials Go to www.Crains t’s Aug. 28 and Joe Calabrese is from Nashville, Tenn.; Albuquerque, Cleveland.com/ playing tour guide. As he’s N.M.; and elsewhere, have come to EuclidGallery for a been doing several times a town to see what all the HealthLine video of our ride- month since the HealthLine fuss is about. Cleveland is one of along on the Health- Iopened in October 2008, the gen- several stops on the group’s U.S. Line and other multimedia features. eral manager of the Greater Cleve- tour following a transit convention STEPHEN HERRON land Regional Transit Authority in Las Vegas. has a microphone in his hand. As Mr. Calabrese describes the subway car. It has doors left and a focal point for everyone to steer TRACKING HEALTHLINE’S He’s ticking off the specs of the 63-foot-long, bend-in-the-middle right — five in all — so passengers toward.” $850,000 HealthLine vehicle he’s vehicle, he points out that, despite can board on either side, depending Mr. Geis is part of family-owned RIDERSHIP standing in to a group of seven its rubber wheels, it’s a bit like a on the station configuration, and it Geis Cos. and a principal in Hem- Passenger traffic on RTA’s HealthLine offers level entry — especially ingway Development Corp. of steadily has increased since its important for wheelchairs — from Streetsboro, which is developing inception in October 2008. elevated platforms. MidTown Tech Park, a multi-building Bigger than a standard bus, it research/incubator complex at Time period Number carries 100 passengers — 47 seated, 6700 Euclid. 53 standing — and is powered by a Estimates of the construction Oct. 07-Sept. 08 2.60 million* hybrid diesel-electric motor. Because and development under way or Oct. 08-Sept. 09 3.76 million of computer-timed lights, it moves planned over the next few years up and down Euclid Avenue faster along the Euclid Avenue corridor Oct. 09-Sept. 10 4.13 million than a bus, shaving 12 minutes off top $6.3 billion, and the new line the 32-minute bus ride from Public also is succeeding in boosting tran- Oct. 10-Sept. 11 4.37 million Square to University Circle. sit ridership along Euclid. As Mr. Calabrese signals the Planners began to think about Oct. 11-Sept. 12 4.59 million operator, the vehicle moves off for a linking the city’s two major employ- trip up Euclid Avenue. ment centers — downtown and Uni- * RIDERSHIP PRE-HEALTHLINE ON THE NO. 6 LINE Earlier, in a training room at RTA versity Circle — in the early 1970s. headquarters on West Sixth Street A 1972 study by the Cleveland/ least $50 million going for streetscape in Cleveland, Mr. Calabrese briefed Seven County Transportation/Land improvements — everything from the group on the history of the $200 Use Study, the predecessor of the new pavement and sidewalks to new million HealthLine and the thinking Northeast Ohio Areawide Coordi- lighting and even artist-designed behind its creation. The line, he said, nating Agency, a regional planning trash cans. The utilities took the was from its beginnings in the 1980s organization, maps out a “Euclid happenstance of torn-up streets to seen as more than just a transit line. Transit Corridor” between downtown upgrade telephone, fiber-optic, “(Civic leaders) wanted connectivi- Cleveland and University Circle. water and sewer lines. ty to the major institutions along the Well-known urban planner Lawrence That extensive roadway rebuilding corridor,” he said. “What was most Halprin picked up on the concept may have been the only downside important to the community, howev- in his 1975 city master plan, the so- to the project — it tore up sidewalks er, was economic development.” called Halprin Study, commissioned and sections of pavement some- by the Cleveland Foundation. times for months, hurting retail A long road A decade later, the Greater Cleve- businesses along Euclid and incon- Indeed, developer Fred Geis said land Regional Transit Authority and veniencing drivers and pedestrians. the transit project “gave companies NOACA in a 1982 study identified the Euclid corridor as the part of ‘As good as we’ve seen’ town most in need of transportation Joe Marinucci, president and CEO, improvements and gave a name Downtown Cleveland Alliance, said that stuck for a decade — the “Dual the public’s sometimes negative Hub Corridor.” reaction to construction of the HealthLine and its long-term dis- A different route WE ARE ROETZEL. ruption of Euclid surprised him. A more comprehensive study by “It really showed us how important the city planning department in Euclid is to the community,” he said. 1985 proposed several options, in- The HealthLine name itself is an cluding a rail line that would include indicator of the impact the line is a short subway section that surfaced having. In spring 2008, shortly at the edge of downtown for a before what was then being called street-car-like run to University Circle. the Silver Line was to open, the RTA and the city for several years Cleveland Clinic and University sought federal money for a $600 Hospitals, the two major health million subway/rail line. But the care institutions along the line, paid Federal Transit Administration (FTA) RTA for naming rights. wouldn’t go for it. So planners turned The two hospitals agreed to pay a to a new concept gaining acceptance total of $6.25 million over 25 years in Europe and South America — the to brand the line. bus-rapid transit, a rubber-wheeled The international Institute for vehicle that used city streets but Transportation & Development Poli- operated more like a street car. cy last year put the HealthLine at the 0VSBUUPSOFZTPõFSDPNQSFIFOTJWFSFQSFTFOUBUJPOBOEJOEFQUITLJMMTUPEFWFMPQFST The community wanted some- top of its list of U.S. bus-rapid transit thing more than a prosaic bus line, systems. The organization, which ad- PXOFSTBOECVTJOFTTFTPOBMPDBM SFHJPOBMBOEOBUJPOBMCBTJT/BNFEBNPOHUIF since the goal was putting young vocates for environmentally sound i#FTUPGUIF#FTUwMBXmSNTCZMidwest Real Estate NewsGPSUIFFJHIUIDPOTFDVUJWF professionals, who would be working transportation planning worldwide, at high-tech or biomedical busi- cheered the use of off-board fare ZFBS XFTUSJWFUPDPOUSJCVUFWBMVFCZPõFSJOHJOOPWBUJWF BMUFSOBUJWFTUSBUFHJFT nesses, in the seats. collection, the smart use of dedicat- Dave Gunning Mark Sarlson Lewis Adkins and “But we wanted something as ed bus lanes, center-road transit 5FBNNFNCFST JODMVEJOH rail-like as possible,” Mr. Calabrese stations and platform boarding, Al Salvatore BSFKVTUBQIPOFDBMMPSBDMJDLBXBZ told the Australians. “Something which allows wheelchairs to enter fast, simple, safe and first class.” and exit without special equipment. In addition to the transit improve- That kind of transit industry and 5PMFBSONPSF DPOUBDUPVS$MFWFMBOEPöDFBU ments, however, community urban planning praise is what leaders saw the need for the physical brought the Australians to Cleveland, or visit us at ralaw.com/cleveland rebuilding of the streets and side- and it’s what brings transit officials walks. An even higher priority was to town several times a month. the desire to build something that “Across the board, we’re looking would spur new development of at a whole variety of systems,” said abandoned properties and the Michael Apps, executive director of /&8:03,t$)*$"(0tCLEVELANDt50-&%0t",30/t$0-6.#64t$*/$*//"5* renovation of aging buildings. Australia’s Bus Industry Confedera- 8"4)*/(50/ %$t5"--")"44&&t03-"/%0t'035.:&34t/"1-&4t'035-"6%&3%"-& The total cost of the plan accepted tion after his tour. “This is as good by the FTA was $200 million, with at as we’ve seen, if not the best.” ■ 20121029-NEWS--17-NAT-CCI-CL_-- 10/26/2012 10:53 AM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 SPECIAL REPORT: CORRIDOR OF CHANGE CRAIN’S CLEVELAND BUSINESS 17

partners without the HealthLine,” Rise: he said. Midtown sees fruits of Euclid Avenue labor Avenue for change continued from PAGE 11 renovation of an old department ON THE WEB Along with the new designation as At Public Square, development out of reach. Finally, a solution store into residences at 668 Euclid a center for health care and biomed- there, notably a clutch of new was found in creating what’s — were drawn to their locations by For smart phone ical businesses, the hospitals agreed restaurants, including the East known as a bus-rapid transit line. the HealthLine. users, scan this QR, to encourage their vendors to set up Fourth Street restaurant row, owe It was the first move in the “It was a catalyst in the purest or “quick response” operations along the corridor. a debt to the HealthLine, though modern-day transformation of sense,” said Hunter Morrison, code, with any QR Similar things were happening other improvements, notably the what historically has been Cleve- Cleveland’s planning director from code reader to view elsewhere along the route. Horseshoe Casino Cleveland, cer- land’s main street — long ago 1981 to 2002, the critical planning historic photos of Euclid Avenue. The hospitals re-oriented their tainly share the credit. home to Millionaires Row and years for the HealthLine. “It’s the expansion plans to conform to the In between, Cleveland State once a downtown destination for combination of the (stylish vehicles), since funding for the HealthLine was Euclid corridor plan. And in 2007, University brought the front door of the city’s elite. quality infrastructure, the discus- secured, old commercial buildings Case Western Reserve University, its law school down to the sidewalk “This has been the rise and fall sions that went on (over the years of have been renovated and residential with a commitment from downtown and built its new College of Educa- and rise again of a great American planning), the decision of the city to development is returning. developer MRN Ltd., pulled the tion and Human Services building street,” said Chris Ronayne, president change the zoning code and the will- “Is it worth it? Yes,” said James trigger on a plan to develop 8½ against the Euclid Avenue sidewalk of the nonprofit University Circle Inc. ingness of the major institutions to Haviland, executive director of Mid- acres at Euclid and Ford Road into just east of East 24th Street. engage in the planning process.” Town Cleveland Inc., a development a mixed-use district called Uptown Return on investment Also, as part of its plan to become As they considered the transit nonprofit. “Real estate values have that would combine housing, retail a more residential campus, the Today, sleek, 63-foot-long improvements, planners also picked doubled, and we’ve seen average shops, cafes and restaurants. university put new housing across HealthLine vehicles glide smoothly up on a number of design principles lease rates rise from $10 or $11 a The Museum of Contemporary the street right up to the sidewalk. along Euclid Avenue like a rapid broadly called “The New Urbanism,” square foot to $12.50 a square foot. Art and the Cleveland Institute of Chris Warren, the city of Cleveland’s transit or streetcar of old, though a concept that promotes mass In addition, Midtown is at the cen- Art jumped in and, according to Mr. chief of regional development, they travel on rubber tires. transit and believes that bringing ter of a stretch of Euclid, from Cleve- Ronayne, by the time Uptown is believes the HealthLine can spur Based purely on its transit bene- activity as close to the street as land State University to University finished — with 250 residential the growth of Cleveland State Uni- fits, the HealthLine might be worth possible invites foot traffic. Circle, that has been given a shiny, units and more than 100,000 square versity and the nondescript neigh- the $200 million investment from New zoning and design guide- new identity — the “Health-Tech feet of retail — the intersection will borhood around it, into what he federal, state and local governments. lines were implemented, such as Corridor,” for which the city of Cleve- see $250 million in investment. calls “College Town,” a lively vi- The real return, however, is better bringing buildings right to the land and Cuyahoga County in 2010 “I think prospects are better today brant mixed-use neighborhood. measured in broader economic sidewalk. The result: There is no pledged a variety of incentives. for that entire area than they have “In five years we could see a terms, in well-paying jobs created chance demolished buildings can Later that year, the state of Ohio been for the last 50 years or so,” said (new) identity for a state university or dollars invested by the private be replaced by car dealerships, fast jumped in designating the corridor John Wheeler, the CWRU’s senior that stretches from Payne Avenue sector in physical development. food restaurants or parking lots. an “Ohio Hub of Opportunity and vice president for administration. “I on the north to Carnegie Avenue on By that measure, the HealthLine, It also meant a sprucing up of the Innovation,” which brought with it think you could honestly say the the south,” he said. “If that happens which just started its fifth year of streetscape. Bike lanes were added priority status for state development HealthLine sparked a lot of that. it will feed everything else (in the operation, is looking like a runaway and Cleveland Public Art (now grants and loans. “We would not have had the area around the university).” ■ success. Estimates vary, and LAND Studio), a nonprofit that ad- continue to grow, but every tally of vocates for and even commissions the value of the more than 100 new art for streets and building exteriors, building or renovation projects was brought into the planning. under way, or on a clear path to Euclid now has 1,500 new trees groundbreaking, is approaching, if and benches and even fanciful stain- not topping, $6 billion. less steel waste containers — all of Some on that list, especially new which attract foot traffic. buildings at the Cleveland Clinic and The Solon Select is a Lighting the fire University Hospitals Case Medical distinguished group Center, certainly would have hap- No place is the HealthLine of more than 800 pened without a new Euclid Avenue. having more impact than in Mid- businesses that have But others — the MidTown Tech town, a neighborhood that slowly chosen to locate in Park, expansion plans by the had been struggling against decline the City of Solon. Cleveland Institute of Art, the for several decades. In the years When It Gets Down to Business… Got a big meeting to plan? Why not Cleveland? Solon Gets It! The City of Solon welcomes these new businesses:

ith $2 billion Circle K in visitor-related Furry Friends Animal Clinic Winfrastructure development, Cleveland Ire Magna is becoming a dynamic Liberty Mutual Insurance meeting destination. Medra Marketing Inc. Jack Schron, president Reno Warehouse LLC of locally owned and operated Jergens, Inc., will Securro Family Insurance showcase Cleveland by Solon Nail bringing his company’s 2013 national meeting Streak Investments home. And, Positively Ulta Beauty Cleveland is here to help. WRIS Web Services Whether you’re a professional who has a hand in your And thanks these real estate professionals for organization’s meeting bringing new business to Solon: planning or you’re simply Jeffrey Calig - NAI Daus a resident full of civic pride, Positively Cleveland Eliot Kijewski - CRESCO Real Estate can support you – and Robert Walick - The Mid-America Management Corporation even reward you – for bringing a meeting home to Cleveland. Visit ClevelandChampions.com. Solon’s Got It! “Why not Cleveland?” Prime industrial, ofﬁce and retail sites at www.solonohio.org - Jack Schron, president of Cleveland-based Jergens, Inc. City of Solon • 34200 Bainbridge Road • Solon, Ohio 44139 • 440.337.1313 Peggy Weil Dorfman, Economic Development Manager • [email protected] 20121029-NEWS--18-NAT-CCI-CL_-- 10/26/2012 10:54 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT: CORRIDOR OF CHANGE OCTOBER 29 - NOVEMBER 4, 2012 Nonprofits a driving force behind Euclid redevelopment Organizations fix buildings, provide services and It’s a big win for a section of the “Cleveland absolutely has one of the more advanced, Euclid corridor that for decades has effective community development corporation systems do whatever they can to promote private projects lacked focus and seen its building stock decline. in the country, particularly for a city of Cleveland’s By JAY MILLER mark at 5000 Euclid Ave. But it would not have happened size.” without MidTown Cleveland Inc., [email protected] At the time, Hank LoConti told – Mark McDermott, vice president, Enterprise Community Partners Cleveland Magazine that he one of a strong cadre of nonprofit n January, members of the thought donating the $6 million organizations that is helping to LoConti family surprised com- property could play a role in making sustain and improve the city’s cities and other funders who are ON THE WEB munity advocates and music over the Agora’s Euclid and East neighborhoods and provide private interested in how to do this right fans alike when they agreed to 55th Street neighborhood. developers technical support in and have local nonprofits that are For smart phone Imake a donation of their four-story Fred Geis, a partner in Heming- operating within an aging city. As a really effective.” users, scan this QR, Agora Ballroom and office complex way, said his firm hopes to refur- nonprofit, MidTown Cleveland Washington, D.C.-based Enter- or “quick response” so that Hemingway Development, bish the building and bring in could receive the building donation prise Community Partners was code, with any QR a division of Geis Cos. of Streets- creative businesses — ones that and turn around and lease it to founded by James Rouse, a shop- code reader to view boro, could redevelop the 99-year- would be attracted to a unique Hemingway Development. ping center and housing developer, a gallery of present-day photos of the old entertainment industry land- property. Making a mark to help communities and their non- Euclid Avenue corridor. profits develop and finance afford- And to view our earlier special The 30-year-old MidTown Cleve- able housing and other services for report, on West 25th Street and land is one of several nonprofits inner-city neighborhoods. Through the Market District in Cleveland’s that have played key roles in the a dozen regional offices across the Ohio City neighborhood, visit development of the Euclid corridor. country, it also provides loans and www.CrainsCleveland.com/W25th. Most, like MidTown Cleveland, are tax credit equity through a for-profit community development corpora- subsidiary. It recently invested in credits. tions, or CDCs. the Uptown development at PlayhouseSquare, in addition to But both the arts-oriented Play- University Circle. operating theaters, is a land assem- houseSquare and the Cleveland Depending on the neighborhood bler and property owner. After the Largest national staffing firm headquartered in Foundation, long known for its and the particular organization’s owner donated the six-story One North East Ohio. Call today to see how we can help support of the arts and health and history, these nonprofits may work Playhouse Square Building to Play- you improve your overall staffing experience. social services, also have played on rehabbing or building new houseSquare’s foundation, it part- key roles in shaping the transit housing; reducing crime; advocating nered with ideastream, the operator Mentor Middleburg Hts. corridor. for (or opposing) the building of of radio’s WCPN and WVIZ-TV, to 440-974-3391 440-243-8790 These organizations, and others new highways; buying land and create the Idea Center, which like them, have given the city a holding it for later development; or opened in 2006 and offers arts edu- Cuyahoga Falls Elyria reputation as having one of the running critical neighborhood cation programs and is home to the 330-926-9680 440-324-2880 best — if not the best — groups of services, such as day care centers or public broadcasting stations. community development nonprofits arts programs. Long-range planning Independence Norwalk in the country. They sustain themselves with 216-328-8168 419-663-1166 “Our observation from a national foundation funding, membership Beyond MidTown, which focuses perspective is that Cleveland dues and federal community devel- on the two-square-mile area between www.nescoresource.com www.talentalley.com absolutely has one of the more opment grants, and they have won the Inner Belt on the west and the advanced, effective community the trust and support of banks and Cleveland Clinic on the east, is development corporation systems other lenders when it comes time to University Circle Inc., the grand- in the country, particularly for a city move a project from the planning daddy of the CDCs. of Cleveland’s size,” said Mark stage to execution. It was created by philanthropists in 1957 to bring some administra- McDermott, a Cleveland-based vice Different roles, same mission president of Enterprise Community tive order to the educational and Partners. “We’re looked to by other Chris Warren, Cleveland Mayor arts organizations in a one-square- Frank Jackson’s chief of regional mile area around University Circle. development, said these nonprofits The plan was for it to operate parking bring together in their neighbor- garages and shuttle bus service and hoods an unparalleled set of experi- provide public safety and landscaping enced, sophisticated and legitimate for the 30-plus institutions within stakeholders. its bounds. What if this... “That’s enormously important to By 1990, though, it had broadened us,” he said. “The professional skill its scope — reaching beyond its origi- sets held by a number of CDCs in nal boundaries — and taken on the this area are unique in the country.” role of being an economic catalyst for Mr. Warren is himself a product the broader neighborhood. In 2007, of the Cleveland community devel- the nonprofit started a fundraising opment system. He was the founding campaign, “Bring Back Euclid director of Tremont West Develop- Avenue,” for new tourist way-finding ment Corp. signs, street lighting and a visitor cen- Across the country, most CDCs ter, knowing that Euclid Avenue soon emphasize housing programs of one would be transformed. stripe or another. Along the Euclid In addition, its ownership of corridor, though, these organizations parking lot land is providing some have more commercial interests. of the footprint for the Uptown In addition to MidTown Cleveland, development. four other organizations have played The Cleveland Foundation, important roles in the planning and though not focused on a particular execution of development plans neighborhood, has played a key along the Euclid corridor — the role in the planning and execution Downtown Cleveland Alliance, the of the Euclid corridor project. Historic Gateway Neighborhood, Since 2007, the foundation has PlayhouseSquare and University Cir- targeted $25.3 million to the corridor, cle Inc. including a $1.6 million grant to Each plays a different role, help construct the new Museum of depending on the needs of its Contemporary Art in University ...was this? stretch of the corridor. Circle, a $1.9 million grant to the Downtown Cleveland Alliance and Downtown Cleveland Alliance to the Historic Gateway Neighborhood, support its efforts to remake Euclid unlike MidTown, can’t afford to buy Avenue from Public Square to Play- It almost was. But thanks to the heroic efforts of a concerned group of FIND OUT HOW and hold expensive properties in the houseSquare and a $4 million loan heart of the city. Instead, the two re- to help MRN Ltd. develop the citizens, PlayhouseSquare was saved from the wrecking ball and is now PLAYHOUSESQUARE BECAME THE JEWEL OF DOWNTOWN lated organizations have helped de- Uptown retail and residential one of America’s largest and most important performing arts centers. BY TUNING IN TO velopers by orchestrating the cre- district in University Circle. Staging Success: The ation of landmark districts, such as “It was very proactive on our lower Euclid. That kind of designa- part,” said Lillian Kuri, the founda- PlayhouseSquare Story tion, which requires a sophisticated tion’s program director for archi- THU., NOV. 15 AT 8P.M. application and approval by the city’s tecture, urban design and sustain- ON WVIZ/PBS landmark commission, makes it easi- able development. “It was very er for a developer to qualify a build- much a six- or seven-year strategic ing for federal and state historic tax focus.” ■ 20121029-NEWS--19-NAT-CCI-CL_-- 10/26/2012 2:09 PM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012 Two Solon tech firms add space

By STAN BULLARD [email protected]

Call it the Solon shuffle. Through an affiliate, Solon-based Pressco Technology Inc. paid $1.46 million on Oct. 15 for the 26,000- Allan Shaneyfelt, square-foot former Valtronic Tech- the operations nologies Inc. building at 6168 manager at Cochran Road in Solon. Broken Wheel Valtronic bought a larger building Auto Parts & nearby on Fountain Parkway earlier Wrecking in this year. Pressco also is nearby at Cleveland, says leased space in Weston’s Bentley he worries about Park, 29200 Aurora Road. safety if those David W. Cochran, Pressco vice who face fewer president of strategic initiatives, said regulations than in an interview last Friday, Oct. 26, registered buy- that the company will retain its Bentley ers are allowed Park operations. It will use the newly to participate in purchased building for research and auto auctions. development and to expand its oper- MCKINLEY WILEY ations. He said the additional building already was outfitted for its electron- ics-oriented work. Pressco provides high-speed vision Recyclers: inspection systems for the food, bev- If auctions open, prices could rise erage and container markets. Peggy Weil Dorfman, the city of continued from PAGE 3 behind the bill. safety for Mr. Shaneyfelt. passage would be by absorbing Solon’s economic development man- on the salvage cars they sell, Mr. If Ohio State University could For a car to be deemed a salvage those costs or cutting staff, the recy- ager, had predicted the Cochran Road Nelson said. sell seats at its 102,000-seat Ohio vehicle, the cost to repair the car clers’ association Mr. McKinney said. building would not linger long on the Roughly 100,000 scrapped cars Stadium only to 1,000 licensed fans, typically is greater than the value Salvage dealers are limited by what market after Valtronic announced its are sold each year at Ohio salvage the university would be at the mercy of the car, he said. In letting individ- prices they can charge for used parts move in the spring. She estimated a auctions to a pool of 1,000 licensed of those fans in terms of pricing, he uals take salvage cars to their back- by the cost of new auto parts. 6% vacancy rate at midyear in Solon buyers, according to Mike Toman of said. In much the same way, auto yards to repair them, there’s a good “It’s going to cost jobs for our from 7% at the end of 2011. The Success Group, a Columbus- auction operators — and the insur- chance the repairers would cut cor- industry,” Mr. McKinney said. Solon enjoys a tighter market than based group lobbying in favor of SB ance agencies that sell cars to those ners and sacrifice safety, he said. Milliron Auto Parts in the past the region generally, which has a 9% 273. operators — are receiving lower “This is how people get hurt,” Mr. year has had to lay off six people — industrial vacancy rate, reports real- prices for cars because of the limited Shaneyfelt said. “We’ve seen some the first time the company has had ty data firm CoStar. “It’s just what we Over the moon market of buyers, Mr. Toman main- shady, shady things.” to cut its now 26-person work force love to see — companies in Solon ex- Mr. Toman used college football tains. However, Copart’s Mr. Nelson in its 58-year history — because of panding in Solon,” she said. ■ games as a way to illustrate the logic Mr. McKinney said auto prices said there are enough safeguards 2011’s mild winter and the weakening typically rise 20% in states that have built into the bill to avoid such economy. opened auto auctions to everyone. problems. Likewise, Broken Wheel in the However, those higher prices, The legislation requires auction last year laid off three people, leaving while beneficial to auction and insur- operators to register car purchasers it with a 10-person staff, Mr. ance companies, will mean higher with the Bureau of Motor Vehicles. Shaneyfelt said. operating costs for auto recyclers Existing law already requires buyers If SB 273 goes into effect, Mr. already dealing with lower sales, of cars from auctions to have vehi- McKinney estimates Milliron would according to Allan Shaneyfelt, oper- cles inspected by the Ohio State need to cut another 20% of its staff ations manager at Broken Wheel Highway Patrol before they’re taken because it would be buying fewer Auto Parts & Wrecking Inc. in Cleve- on the road. cars at higher costs. land. “This is kind of a David versus “Bids would go (to) the moon,” ‘David versus Goliath’ Goliath fight,” Mr. McKinney said. Mr. Shaneyfelt said.Opening the The only way for auto recyclers to “It’s very difficult to fight the insur- pool of buyers to individuals and deal with the higher prices for cars ance companies and the auction body shops raises concerns about that would result from the bill’s houses. We’re just small guys trying to make a living.” Consider the consumer There are 794 licensed auto recy- THE ATTORNEYS AND STAFF OF clers in Ohio, according to the Ohio Auto and Truck Recyclers Associa- tion. They employ an average of 10 to 15 people, Mr. McKinney said. Sales at Milliron and other auto recyclers across the states are down about 25% so far this year from 2011, he said. “Now is not the time for this,” Mr. McKinney said of the bill. “If you do MOURN THE PASSING OF THE it now, you’re going to put a lot of these businesses out.” FIRM’S LONGTIME PARTNERS AND FRIENDS The insurance companies disagree. Chuck Crist, Progressive Corp.’s claims business leader for Ohio, Michigan and West Virginia, said if insurance companies are able to receive higher prices for the cars they HERBERT BUCKMAN sell at auctions, consumers in Ohio could see lower rates on their insur- AND ance bills. Added Charlie Conover, Ohio product manager for Progressive, in speaking of the effects of the limited PAUL Y. SHAPIRO competition at Ohio auctions, “This is something being borne on the consumer.” ■ 20121029-NEWS--21-NAT-CCI-CL_-- 10/26/2012 1:23 PM Page 1

OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Wi-Fi: Offering high-density access no small, inexpensive task continued from PAGE 1 included in the league’s pilot pro- traffic and then can enhance net- Wi-Fi. It also employs a “Wi-Fi They’d be wise to move forward, “This process has moved in stages, gram, according to company spokes- work capability in higher-traffic coaching staff” — employees in red said Nader Ali-Hassan, a social which has been unavoidable due to man Jason King — has developed a areas or can install more access jackets walking the concourses to media marketing strategist at Cleve- the complexity and size of the project,” more intensive Wi-Fi solution. The points in a second phase of sorts, answer questions and help fans land digital marketing firm Rosetta. Mr. Carper said. “More than likely, company installs miles of copper like the Cavs are planning and the who may need it. Mr. Ali-Hassan said teams lose we will have a ‘1.0 version’ and then wiring, which serves as the power Magic were forced to carry out. marketing opportunities when their work toward a more comprehensive supply for the access points and Enterasys, too, tracks usage and Team opportunity fans enter their venues knowing ‘2.0’ version after that.” carries data from the air into the says its network at Gillette reached Elsewhere in town, teams have they’re going to be disconnected The complexity also results in a wired grid at the stadium and onto as many as 15,000 concurrent users Wi-Fi on their respective radars. for the duration of the game. big price tag, as many previous Wi-Fi the Internet. at the team’s most recent home Browns spokesman Neal Gulkis said “That’s all content talking about projects have ventured into the The difference lies in the number game, Oct. 21 against the New York the team continues to investigate your brand that you could be low- to high-seven-figure range. The of access points; Enterasys says its Jets. (In a sign of the times, Enterasys the issue, and while ideally it would missing,” Mr. Ali-Hassan said. “In a Orlando Magic, for instance, paid $2 solution features about one-third — which can track who is using like to install the technology at small market like Cleveland, that’s million for Wi-Fi at their Amway the number of other projects, what kind of device — said 111 of Cleveland Browns Stadium this year, very important.” Arena before the 2011-12 season, and which can help control costs. those people used BlackBerrys.) more likely would do a 2013 rollout. Plus, teams must make the game- paid another $400,000 for upgrades No matter which route a team Enterasys monitors social media The Indians also have the Wi-Fi day experience enjoyable. this offseason after fans experienced goes, the technology allows for real- during games and reacts to com- issue is “on the radar,” according to “If you’re unable to check fantasy some lag time. time monitoring and assistance plaints about service, which at times team spokesman Curtis Danburg, teams, or social media, at stadiums, Some NFL teams have spent even capabilities. Mr. Girt said teams can can amount to a fan simply not but there’s no definitive timeframe that’s a huge problem for fans and more. Before this season, the NFL track which areas carry the most knowing how to connect to the for a decision. teams,” Mr. Ali-Hassan said. ■ launched a pilot Wi-Fi program at five stadiums: Lucas Oil Stadium in Indianapolis; MetLife Stadium in East Rutherford, N.J.; the New Orleans Saints’ Mercedes-Benz Superdome; Gillette Stadium in Foxboro, Mass.; and the Panthers’ Bank of America Stadium in Charlotte. The installation at the Superdome originally included 600 access points and cost $8 million, according to Our team would like published reports; an upgrade will bring that number to about 1,000. Andover, Mass.-based Enterasys Networks, which handled the Patriots’ to get to know your team. installation, said their project was a multimillion-dollar deal. The NFL originally planned to extend Starting with our newest members: the Wi-Fi program to all teams by next season, but instead is monitoring the success or lack thereof of those five installations, all of which all have been different in scope and used different telecommunications partners. No easy process In some instances, the Wi-Fi is run through data connections already present at a venue, only expanded by a team’s telecommunications partner. That partner then studies seating configurations to best place hundreds of access points throughout a building or stadium. Generally, an access point would serve about 100 users, said Chuck Girt of Cleveland-based Lisa DeFrank Steven VanDette OneCommunity, a nonprofit that provides large-scale broadband access. Assistant Vice President Vice President Of course, not all 20,562 fans at Business Banking Business Banking Quicken Loans Arena on Tuesday 440-953-2182 216-694-5631 night will be looking to access the lisa.defrank@firstmerit.com steven.vandette@firstmerit.com Internet all at once. But teams can tailor their networks to offer better capabilities in locker rooms, press boxes or premium seating areas, such as the 96 suites at Quicken Loans Arena where more sophisticated devices and applications, such as iPads for ordering food and drinks, are in use. Mr. Girt said a large-scale project like at The Q would need to be at least a 100-megabit connection, while a typical residential connection is one megabit. Some of OneCommunity’s ultra-high-speed projects approach Donna Wells Michael Sommerfeld 10 gigabits, with faster speeds on the horizon. Vice President Vice President Enterasys — which currently is Business Banking Equipment Finance and Leasing talking with other NFL teams not 216-802-6597 216-694-5661 donna.wells@firstmerit.com michael.sommerfeld@firstmerit.com

Volume 33, Number 42 Crain’s Cleveland Busi- ness (ISSN 0197-2375) is published weekly, except for combined issues on the third week of May and fourth week of May, the fourth week of June and first When you need expert advice, quick decision-making, and unwavering week of July, the third week of December and fourth attention, you’ll have the full support of an experienced team. Just give week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 us a call. Any of us. And we can guarantee—you’ve got all of us. by Crain Communications Inc. Periodicals postage ﬁrstmerit.com paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, PERSONAL BUSINESS COMMERCIAL WEALTH Michigan 48207-2912. 1-877-824-9373. Member FDIC 850_FM12 REPRINT INFORMATION: 800-290-5460 Ext. 136 20121029-NEWS--22-NAT-CCI-CL_-- 10/26/2012 1:24 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 29 - NOVEMBER 4, 2012

ON THE WEB Story from Center: Med mart name still likely to change www.CrainsCleveland.com. continued from PAGE 3 “When you have a plan and a strategy, people respond better. There is much greater that was interested in a full floor of TransDigm the four-story building “and another willingness to commit.” one called the other day and said, – Jim Bennett, senior vice president, MMPI Inc. ‘How about 12,000 square feet?’ ” scoops up Apart from a handful of local increasingly is seen as an adjunct to “We think that Cleveland is a great Mr. Bennett told County Council nonprofits, MMPI has not announced the 235,000-square-foot conven- spot. Most (medical meetings) are that members of his health care Goodrich unit the names of the tenants of the tion center, which puts Cleveland the perfect size for (the new con- industry advisory committee and medical mart, saying those an- back in the regional and national vention center); they average about others in the local medical commu- TransDigm Group Inc. nouncements will be made when convention business. The aging and 2,000 attendees.” nity think the current name doesn’t said it has entered into a the tenants are ready. Many in the outdated convention center this new reflect accurately the repurposed definitive agreement with community were disappointed when complex replaces was uncompetitive. What’s in a name? building. United Technologies Corp. to the early confirmed tenants were Mr. Bennett told County Council While it is probably most “When are you going to start acquire the pump and engine announced, because the list lacked that 17 conventions are booked into important that Cleveland has a calling it something more like it is?” control systems business of any of the well-known medical the new hall for the last half of 2013, new, attractive convention center, Mr. Bennett said he hears frequently. Goodrich Corp. for about $236 equipment companies that medical and 12 are set for 2014. That’s 10 the adjacent medical mart building “Typically, they come back with million in cash. mart promoters had said would more and four more, respectively, than always has been the more intriguing something like, ‘health innovation Goodrich Pump & Engine flock to this new medical purchasing were booked when Mr. Bennett and risky part of the project. center.’” Control Systems is based in concept. updated council four months ago. Initially, the county and MMPI West Hartford, Conn., and Now, however, Mr. Bennett says Trade associations and conven- expected the medical mart would Now you’re thinking makes proprietary aerospace that situation has been turned tion planners typically book three be for the health care industry what The more upbeat outlook for the fuel systems for the business around. He told County Council to four years in advance, though MMPI’s Chicago Merchandise Mart medical mart largely is the result of jet, helicopter, military and that MMPI has a list of 84 active some groups book for more than is for the furniture industry — a the strategic rethinking that began commercial markets. Among the prospects for the building, 46 of a single year. For example, the national focal point where doctors evolving last spring. engine platforms using its prod- which he described as prominent Ohio Music Educators Association and people who outfit hospitals The impetus for this change has ucts are the General Electric firms outside Northeast Ohio. announced in August that it would with beds, MRI equipment and come from Mr. Bennett, who last T700, the Honeywell T55, the Prior to Mr. Bennett’s arrival, bring its annual convention — with even waiting room furniture would April joined MMPI as Cleveland- Rolls-Royce M250, the Williams MMPI had released a roster of about 9,000 attendees — to the new browse dozens of vendor showrooms based senior vice president. A man- FJ44 family, the Turbomeca tenants that listed mostly local convention center in 2015, 2017 or sales offices, thus saving them- agement consultant for most of his Arrius/Arriel, and the Pratt institutions, including Cleveland and 2019. selves trips to the series of trade career, Mr. Bennett has brought his Whitney Canada 210 engines. State University, Cuyahoga Com- Mr. Bennett also reported MMPI shows that accompany medical talents as a specialist in strategic United Technologies obtained munity College and the nonprofit has 40 convention bookings pending. meetings and conventions. planning to the project. the business when it acquired BioEnterprise Corp. The pace of bookings should quicken, But now the thinking is that the As a result, the convention center Goodrich Corp. at midyear. “If there was a worry, we’re pretty because meeting planners hesitate building will serve as a catalyst for and medical mart now have every- TransDigm said the acquired comfortable we’ve gone beyond to commit before they can see a showing the industry the latest in thing from mission and vision company is expected to have that,” Mr. Bennett told council. finished building. medical and health care equipment. statements to a group of strategic 2012 revenues of $195 million, As a result of the more robust The Cleveland trade show In addition to showrooms staffed by priorities and “organizational ca- with EBITDA (earnings before in- leasing environment, Mr. Bennett complex is getting a break in that individual companies, the building pacity requirements.” terest, taxes, depreciation and said, MMPI can hold the line on regard, though. The International will be a place where groups of In language drawn from the amortization) roughly in the low lease rates. It no longer is offering a Medical Meeting Professionals companies can collaborate on large strategic plan, Mr. Bennett told teens as a percent of revenue. discount of as much as 50% from Association is holding its annual demonstration exhibits, such as County Council the goal is to “aspire Aftermarket revenues make up the advertised rate of $26 a square meeting in Cleveland next May, what MMPI is calling “the operating to show the best of what is possible 55% of its revenue. foot for long-term leases. However, bringing about 200 people. That’s room of the future” or state-of-the- today in health care innovation, W. Nicholas Howley, chairman it does offer modest signing discounts before the center opens, but associ- art patient exam room. education and commerce.” and CEO of TransDigm Group, and allowances for tenant improve- ation president Scott Graham said It also will have space for contin- This new focus, Mr. Bennett said the Goodrich unit’s products ments — measures that are typical the group wanted to come to Cleve- uous medical and health care edu- believes, is a key to the turnaround. “are both a good fit with our in the real estate business. land and he expects the group will cation programs. “When you have a plan and a overall strategy and also allow get a hard-hat tour of the nearly Another part of that strategy for strategy, people respond better,” he us to expand ... on a number of Events add up finished building. the building likely will be to drop said. “There is much greater will- substantial engine applications.” The medical mart building “We’re excited,” Mr. Graham said. the term “medical mart.” ingness to commit.” ■ 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

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OCTOBER 29 - NOVEMBER 4, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS university’s enrollment. — Timothy Magaw OCTOBER 22 - 28 McDonald Hopkins University of Phoenix hosts its troops to ground two outposts Cleveland Clinic India The big story: Diebold Inc. is suspending ■ It isn’t unheard of for a law firm to host ■ Apollo Group Inc., the parent company of isn’t on the horizon indefinitely its plans to construct a new global events and retreats for partners, according the for-profit University of Phoenix, plans to headquarters in Green. “As we’ve been analyzing to most in the local legal community, but close 115 locations across the country, in- ■ The Indian government was ready to offer our near- and long-term growth priorities, it has few can lay claim to doing this. cluding two in the Cleveland market. the Cleveland Clinic 50 acres of land in Punjab become clear that investing McDonald Hopkins LLC this past week- An Apollo Group spokesman confirmed to build a sprawling health center, according more than $100 million in a end spent roughly $200,000 to have all its the company plans to “phase out” the uni- to an account in The Indian Express, an Eng- headquarters facility is not employees — partners, associates, adminis- versity’s operations at its learning centers in lish-language daily newspaper published in economically feasible given the tration and staff — partake in a weekend Westlake and Independence sometime next India. But it’s a match that isn’t in the offing. other priorities for the busi- of entertainment and programming in year. The University of Phoenix will continue While the Clinic has expressed interest in ness at this time,” said Thomas Cleveland, its headquarters city, said Carl J. to operate its campus in Beachwood, he extending its footprint overseas, as demon- W. Swidarski, Diebold’s presi- Grassi, president. Not only did the law firm added. strated by its planned hospital in Abu Dhabi, dent and CEO. The maker of fund the transportation and lodging for its The decision affects fewer than 100 stu- the health care juggernaut doesn’t appear to automated teller machines, 102 out-of-town employees, it paid for the dents. be interested in the Indian Swidarski bank security equipment and trip for their accompanying spouses and “At the end of the day, it proposition. electronic voting machines significant others, too. came down to the demand and “We have no plans to move said it “has no plans to pursue new construction Called “Stronger Together,” the weekend- use by students,” said Apollo forward on this,” Clinic options for its global headquarters, either in long event coincided with the start of the Group spokesman Ryan Rau- spokeswoman Eileen Sheil Ohio or elsewhere, and is committed to remaining new fiscal year for the 265-employee firm zon. “We’re just not seeing the said in an email. in its current location” in Green. and was the first all-firm event like it in traffic and the use of those fa- The Indian government McDonald Hopkins’ more than 80-year his- cilities. We can better allocate apparently was interested in Seeking a spark: PolyOne Corp. agreed to tory, Mr. Grassi said. Altogether, more than those resources online.” luring the Clinic to its soil acquire Spartech Corp. of Clayton, Mo., a pro- 400 attended. While the university has stopped enrolling because of the health system’s reputation as ducer of plastic sheet, compounds and packaging. Among the events was dinner at the firm’s students at the Westlake and Independence one of the world’s best cardiac care hospitals. Under terms of the acquisition agreement, office Friday, a private party Saturday at locations, the students still can use the facil- “Punjab is leading the country in cardiac Spartech stockholders will receive $2.67 in cash Pickwick & Frolic Restaurant & Club and a ities for now. University of Phoenix students diseases mainly due to lavish eating habits,” and 0.3167 shares of PolyOne common stock for program called “When Generations Collide,” enrolled at the Westlake and Independence deputy chief minister Sukhbir Singh Badal each share of Spartech common stock they own. presented by a company called BridgeWorks locations are encouraged to talk with their was quoted in the Express as saying. “To PolyOne put the total transaction value at about about multigenerational gaps and how to academic counselors or call 1-866-992-3302 have a hospital like Cleveland Clinic here for $393 million, including the assumption of bridge them. to determine how the planned closure cardiac care and research makes sense.” Spartech’s net debt of $142 million. In the nine Asked about the expenditures for travel, might affect them. Meanwhile, the Clinic’s first overseas en- months that ended Aug. 4, Spartech reported lodging and food, Mr. Grassi said, “Actually, Planned closures, companywide layoffs deavor — a 360-bed, multispecialty hospital earnings of nearly $3.3 million, or 10 cents a it’s not that bad when you consider what it and other cost-reduction initiatives are ex- in Abu Dhabi, United Arab Emirates — is share, on sales of $862.6 million. costs us when we go out of town. We feel pected to affect Apollo Group’s operating expected to open late next year. The Clinic very strongly about bringing the money expenses by at least $300 million by fiscal signed a 15-year agreement with Mubadala Have a heart program: The Cleveland back into the city and having people enjoy 2014. Nationwide, the closures are expected Development to manage the hospital. — Clinic’s lauded heart care program continues to it.” — Michelle Park to affect 13,000 students, or about 4% of the Timothy Magaw extend its footprint, as the health system inked a deal to offer its cardiac services at Saint Vincent Health Center in Erie, Pa. The affiliation is the WHAT’S NEW BEST OF THE BLOGS heart program’s 10th beyond state lines and will take effect Dec. 1. As part of the arrangement, Excerpts from recent blog entries on she) works 60-plus hours a week is probably the Clinic will lend its expertise in the field to CrainsCleveland.com. lying. Saint Vincent’s cardiologists. In addition, Saint Harvard Business Review said people Vincent’s heart and vascular specialists will par- THE COMPANY: There’s nothing super “overstate the number of weekly hours they ticipate in training, conferences and educational about these figures ‘usually’ work by 5% to 10%, with those on programs provided by the Clinic. The David the higher end being more likely to overes- Round Co., ■ Our politicized debate about health care timate,” according to a University of Mary- Poised for growth: Diversified manufacturer Streetsboro doesn’t usually get around to this subject: land study. Ametek Inc. of Berwyn, Pa., bought Micro-Poise people known as “super-utilizers,” who place “By examining U.S. workers’ time diaries, Measurement Systems LLC, a Streetsboro THE PRODUCT: a huge and costly burden on the med- the researchers found that people who company that provides test and measurement All-stainless ical system. say they usually work 55 to 64 hours equipment for the tire industry, for $170 million “Simply put, super-utilizers are per week are off by an average of in cash. Micro-Poise is expected to post sales of articulating jib people who overuse emergency about 10 hours; people who $125 million this year. In addition to the Streets- cranes departments and hospital inpa- say they work 65 to 74 hours are boro headquarters, Micro-Poise has plants in tient services, making more visits overstating by about 20 hours,” Troy, Mich.; Beijing, China; and Lübeck, Ger- The company says its new line of jib cranes to those facilities in a month than Harvard Business Review said. many. The Streetsboro company will become is designed specifically for pharmaceutical some people make in a lifetime,” Respondents may inflate their part of Ametek’s Electronic Instruments Group, manufacturing. The Washington Post reported. estimates because of a desire to which posted sales of $1.6 billion in 2011 — The cranes “are ideal for lifting bulk bags Cleveland is one of six communities, appear industrious, the research suggests. nearly half of Ametek’s $3.4 billion in sales last or other materials up to 1,000 lbs. in clean The Post noted, in which the Robert Wood year. room environments,” according to the com- Johnson Foundation has made a total of $2.1 In fashion, at least, pany. “Explosion proof models of these jib million in grants to address super-utilizer Cavaliers lead the league This deal’s a gem: Signet Jewelers Ltd., the cranes are available to meet the electrical situations. parent company of Sterling Jewelers in Akron, standards required in hazardous environment Susan Mende, a senior program officer at ■ The 2012-13 NBA season hasn’t started signed a definitive agreement to acquire Chicago- processing areas.” the foundation, told the newspaper these yet, but the Cleveland Cavaliers already are based Ultra Stores Inc. from Crystal Financial David Round says the jib cranes feature fully patients suffer from “multiple chronic big winners. In the new “NBA Uniform LLC and its other stockholders for about $57 enclosed mechanical components, including complex diseases, including mental health Power Rankings” on Grantland.com, the million in cash. Signet said it will not assume any a wire rope hoist, gearbox and motor drum. issues” along with “really difficult social sit- Cavaliers were at the top. debt in connection with the acquisition. Ultra Lift height and boom/knuckle configurations uations” such as inadequate — or nonexis- “If you’re playing basketball in Cleveland, Stores, founded in 1991, is a jewelry retailer can be varied to meet customer specifica- tent — housing. They also lack a primary you should be the happiest player in the operating primarily in outlet centers, as well as tions. care physician or other medical home, so NBA. You should. For a decade, it was in licensed jewelry departments. In addition, structural components “are their health care is haphazard and uncoor- maroon, maroon, maroon — and what prepared with a glass bead finish that is dinated, Mr. Mende said. happened? You got marooned,” wrote Talk it out: American Greetings Corp. said its applied in a dedicated in-house metal treat- The Post said the first task facing grant Grantland.com’s Wesley Morris. board of directors formed a special committee of ment facility,” the company says. “This results recipients is to identify super-utilizers by “It’s been two years since you-know-who independent directors to consider, among other in smoother, more hygienic surfaces that are “looking at emergency room data across left. It’s time for a new you, and here it is: things, the proposal made by members of the free of imperfections such as weld scars.” multiple hospitals.” Figuring out how to French’s mustard with Heinz script,” he Weiss family and certain related parties to take David Round was founded in 1869. In serve this population more efficiently is added. “It’s young, it’s exciting, and when I the company private. The Weiss family has addition to its line of specialized clean room- critical, the foundation said, because the see it I immediately want to put the whole proposed buying all the Class A and Class B grade products, it makes standard chain sickest 5% of U.S. patients account for more thing on my hot dog. It’s only an alternate common shares of American Greetings that it does hoists, jib cranes, winches and tractor drives. than 60% of health care costs. uniform, it’s true. But it’s one that says not already own for $17.18 a share. American For information, visit www.DavidRound.com. things are looking up: We’ve still got Kyrie Greetings said the special committee also is Don’t feel bad about Irving, and we just know he’ll be thrilled to authorized to review and evaluate other options Send information about new products to spend many nights for many years wearing available to the company. managing editor Scott Suttell at ssuttell@crain your 40-hour work week this and not totally ripping our hearts out. .com. ■ That guy (or woman) who tells you he (or Right, Kyrie?” 20121029-NEWS--24-NAT-CCI-CL_-- 10/26/2012 10:57 AM Page 1

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