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20120604-NEWS--29-NAT-CCI-CL_-- 5/31/2012 3:35 PM Page 1

$2.00/JUNE 4 - 10, 2012

Proud to be the 2012 SBA Large Lender of the Year KeyBank is committed to lend $5 billion to small businesses by 2014.

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Vol. 33, No. 22 $2.00/JUNE 4 - 10, 2012

Eaton shift Law school away from admission trucks long in coming tighter at Acquisition continues CSU, CWRU manufacturer’s focus on electrical business Jobs scarce and apps down,

By MARK DODOSH schools recalculate class size [email protected] By MICHELLE PARK [email protected] The planned $11.8 billion megadeal that will combine Cleveland-based Two of Northeast Ohio’s three law schools Eaton Corp. with Cooper Industries MARC GOLUB are among a growing number of law institutions plc of Dublin, Ireland, will result in Josh Kabat and his fiancée, Kiaran Daley, own the new Cleveland Pickle sandwich shop in the City Club Building scaling back admissions as applications continue the formation of a company that is on Euclid Avenue in downtown Cleveland. to drop amid a persistently tough job market for referred to in regulatory documents attorneys. as “New Eaton.” In an effort to preserve the quality of the But, in reality, school’s incoming class, Cleveland-Marshall Eaton has been College of Law is cutting the target for its entering ANALYSIS creating a “New HEY, NEIGHBORS! class to 140 from its previous target of 200. Like- Eaton” for at least wise, Case Western Reserve a decade, with the pace of its trans- University School of Law formation into an electrical equip- Influx of restaurants promising sign for city’s residential hopes is reducing its admissions INSIDE: A look at ment and energy management giant target by about 10%, to past enrollment accelerating over the last four years. By JAY MILLER lunch counters and fast-food spots 190 from a previous range data from Cleve- Eaton began its life 101 years ago [email protected] by the mid-1990s after law firms and of 210 to 220. land-Marshall and as a maker of truck axles, but the businesses fled to the suburbs and Cleveland-Marshall’s the University of company has seen its truck and here’s no better way to chart the Tower City and Galleria malls applications are down Akron. Page 16 automotive segments steadily shrink the evolution of downtown opened their food courts. Later, fine nearly 30% this year com- in their relative contributions to Cleveland into a residential dining emerged, first in the Ware- pared to last year, when Eaton’s business as a whole. That’s neighborhood than to watch house District and then on East the school admitted 168 students in its fall class, because Eaton has focused in recent Tthe kind of restaurants that are Fourth Street, squeezing out even said its dean, Craig M. Boise. Both Mr. Boise times on acquiring companies related moving onto Euclid and Prospect more delis and diners. and Lawrence E. Mitchell, dean at Case Western to its electrical business segments, avenues and into the Warehouse But the tide is turning, or maybe Reserve’s law school, are revising their admis- which the company three years ago District. returning. With young people flocking sion targets downward in their first years at the divided for financial reporting pur- Downtown’s streets had lost nearly to renovated apartments in former helm. poses into “Electrical Americas” and all their family restaurants, storefront See NEIGHBORS Page 12 “Having been here a little less than a year, “Electrical Rest of World.” obviously the first thing you hate to do is say, The acquisition of Cooper Indus- ‘Look, my revenue’s down, and we need to … tries would put an exclamation point shrink revenue projections for the law school on Eaton’s transformation because MORE OPTIONS DOWNTOWN ... going forward,’” said Mr. Boise, who became of Cooper’s size and global reach as dean last July. “But this is something that’s not a supplier of electrical equipment ... AND COMING that includes such better-known brands SOON See ADMISSION Page 16 as Crouse-Hinds electrical enclosures and Halo lighting fixtures. In 2011, Eaton’s two electrical INSIDE segments combined to account for Want a tasty treat? You’re in $7.2 billion, or 45%, of Eaton’s overall BRGR 9, West Ninth St. El Güero, West Ninth St. sales and $883 million, or 39%, of its the right place operating profits. The planned addi- As summer fast approaches, tion of Cooper, which had sales last Northeast Ohio has been inun- year of $5.4 billion and net income of dated by stores serving $828 million, would cause Eaton’s frozen snacks. PAGE 10 electrical business to dwarf each of PLUS: its four other operating segments — ■ The Gotham King portfolio Hydraulics, Aerospace, Truck and of nine office buildings in the Automotive. Charka Indian Cuisine, West Ninth St. Nexus Café, Prospect Avenue Potbelly, Euclid Avenue city’s eastern suburbs has en- However, even before the surprise tered into foreclosure. PAGE 3 See EATON Page 26 INSIDE: Many restaurateurs already established in Northeast Ohio are looking to expand beyond the region. Page 14

SPECIAL SECTION INVE$TINGGUIDE2012 Investors grow more leery of potential effects of Entire contents © 2012 November’s presidential election ■ Page I-1 by Crain Communications Inc. PLUS: DEFERRED COMPENSATION ■ SUPERSTAR 10 ■ & MORE Vol. 33, No. 22 20120604-NEWS--2-NAT-CCI-CL_-- 5/31/2012 1:06 PM Page 1

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JUNE 4 -10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Gotham King portfolio in foreclosure INSIGHT

asked for the appointment of a Former Duke Realty buildings suffering from lofty ’07 purchase price receiver and to transfer the case to Region has the county court’s commercial docket. By STAN BULLARD its seeds were sown in 2007 when into so-called “special servicing” a Under court rules, Judge Corrigan [email protected] Gotham Realty Holdings of New year ago in what Mr. King described cannot rule on the requests until this strengths York and local developer and broker as a strategic default to try to rene- week at the earliest. One of the region’s commercial Donald King bought the buildings gotiate the loan, which had been Court papers by Orix maintain real estate trophies, the Gotham from Duke Realty Corp. of Indi- sold to investors. However, Dallas- Gotham King has not made payments King portfolio of nine office buildings anapolis for $140 million. The price based Orix Capital Markets LLC filed of more than $800,000 monthly since in water in the eastern suburbs, is the subject is considered a record for a portfolio to foreclose on the properties May July 2011. The mortgage does not of a $135 million foreclosure action of office buildings in Northeast 23 in county court, and the case was mature until 2017. in Cuyahoga County Common Ohio’s suburbs, and was paid just assigned to Judge Peter Corrigan. Duke sold the nine buildings in its technology Pleas Court. before the ensuing recession gave Orix, which serves as special quest to exit Northeast Ohio for Real estate experts express no the office market a drubbing. servicer, and U.S. Bank, which acts surprise at the development, saying The Gotham King mortgage went as trustee for the bondholders, have See GOTHAM Page 8 NorTech may work to build industry cluster By CHUCK SODER [email protected]

NorTech thinks its latest idea could hold water. Northeast Ohio could create a lot of jobs if it can build on existing strengths related to water technology, according to NorTech vice president Byron Clayton. The opportunity could be big enough to warrant more of Nor- Tech’s attention. The technology- focused economic development group, which already is working to accelerate the region’s advanced energy and flexible electronics sectors, might make water technology its third focus area. That decision depends on the outcome of a study NorTech is in the process of finishing. Although the study isn’t done, information gathered so far suggests that Northeast Ohio has what it takes to be a player in the water technology sector, said Dr. Clayton, who would lead NorTech’s effort to promote the sector’s growth. The findings also suggest that demand for water technologies is on the rise, he said. JASON MILLER Vox Mobile CEO Kris Snyder finds himself in a good spot these days. He’s leading a company that helps other businesses manage their The near-term opportunity in handheld mobile devices, and the more types of devices they buy, the more they want the help of businesses like his. water technology is driven by federal mandates: The U.S. Envi- ronmental Protection Agency is By CHUCK SODER requiring that sewer districts [email protected] across the nation reduce the VOX amount of sewage that flows into ox Mobile Inc. should thank waterways during heavy rains. Among them is the Northeast that guy who keeps asking Ohio Regional Sewer District, MANAGES his boss if he can get an which plans to spend $3 billion iPhone. over the next 25 years reducing storm water runoff that gets into VAll those businesses that are starting the sewer system and adding A MOBILE to let their employees use iPhones, infrastructure designed to prevent sewers from overflowing so often. Androids and other handheld mobile The bigger, longer-term oppor- devices for their work have helped Vox tunity involves cleaning up indus- WORLD Mobile more than triple the size of its trial wastewater, Dr. Clayton said. That’s a topic companies in North- staff in less than three years. east Ohio know a lot about, given The Independence-based company, the region’s industrial heritage Company triples in size and its well-publicized struggles which helps businesses manage their to keep the Cuyahoga River and as businesses look for help mobile devices, employs 110 today, up Lake Erie clean. See WATER Page 27 with smart phones, tablets See MOBILE Page 26

CORRECTION THE WEEK IN QUOTES The May 21 “Who’s Who” feature incorrectly stated Third Federal “We either needed to “Even if your mistakes “Everybody’s afraid “I’m bullish on energy. Savings & Loan’s deposits in the prepare to admit a lot are horrible, people that the wrong … Over the long term entry for chairman and CEO Marc A. Stefanski. of students who were want to try it. They president doing the I’m sure it’s a good Third Federal had $6.1 billion in wrong thing can put deposits in 2011 in the Cleveland area likely not going to be say, ‘I want to see investment.” and $8.8 billion companywide. successful ... or we what horrible tastes us back into a — Carina Diamond, managing director, SS&G Wealth Manage- had to get smaller.” like.’” recession.” ment, Solon. I-4 — Craig M. Boise, dean, Cleve- — Celeste Blau, co-owner of The — Kevin Myeroff, CEO of NCA land-Marshall College of Law. Sweet Spot in Lakewood. Page Financial Planners, Mayfield Page One 10 Heights. Page I-1 20120604-NEWS--4-NAT-CCI-CL_-- 6/1/2012 10:37 AM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Switch it arketing counts for plenty when selling groups from outside Northeast Ohio on holding their meetings and conventions in Cleveland. And right now, the commu- Mnity isn’t doing itself any favors by giving its convention center second-banana status in marketing the city’s new meeting complex as the Cleveland Med- ical Mart and Convention Center. At the very least, the names should be switched so that the convention center receives top billing over the medical mart. And serious consideration should FROM THE PUBLISHER be given to changing the “medical mart” part of the name so that it identifies more clearly just what will be going on inside the space that will serve as an A resource for human resource issues adjunct to the convention center portion of the complex that’s rising on Cleveland’s Mall. o, how many times over, say, the ago. It’s free and you can register for it on at all to the Millennials. We’ve wondered from the start why “convention last 12 months have you found our home page at www.crainscleveland To have the best work force, you just center” has come second in the name. Hotels, yourself in something like the .com. might need to manage differently. For restaurants and attractions such as the Rock and following conversation? But the events we’ve held on this topic example, is there technology you can SYOU: “We’ve been trying to fill a also have drawn an interesting mix of employ to bridge the generations? Are Roll Hall of Fame and Museum stand to benefit management job for months now, and we folks from all sorts of industries across you trying to identify values that are most from the dozens upon dozens of meetings the just can’t seem to find great candidates.” Northeast Ohio. Savvy business owners shared across all these generations so they convention hall could host each year as tens of THEM: “I know what you mean. We and HR leaders know that if it’s difficult can pull together? Do you understand thousands of visitors from outside the region spend had a director leave three months now to find good people, it’s what are truths and myths about each their money here. ago, and have tried everything BRIAN going to get far worse as the generation? Cleveland essentially has been out of the convention — recruiters, trade publication TUCKER Baby Boomers continue to On June 21, we will host a breakfast business for two decades, as the city’s old conven- ads, digital job services and the leave the work force. panel that will delve into those questions tion center was an antiquated, pillar-filled structure results are maddening.” We believe a key to keeping and more in an effort to help businesses that many meeting planners bypassed in favor of YOU: “Same with us. And it’s talented employees is learning enlarge their talent pool. And it’s a robust a good job, with a nice salary what makes them tick. And group, consisting of Robert Walker, modern options in other cities. Nearly a half-billion and benefits package.” believe me, it’s more than just a director of Kent State University’s School dollars in Cuyahoga County sales tax money is THEM: “Yeah, same here. With salary and benefits package and of Digital Sciences; Evan Ishida, senior going toward the new trade show complex that will this supposed bad economy interesting work. manager of performance and learning occupy the place where the former convention and high unemployment, how Think about it: For perhaps consulting at Eaton Corp.; and Alan center stood. To get the most bang for those bucks, can there not be more good the first time in American history, Loos, manager of information technology the name that goes on the complex and on promo- people out there?” workplaces are filled with people from at FedEx International. tional materials for it should scream that Cleveland Talent retention and acquisition is a three distinctly different generations, The event at the Ritz Carlton starts with is back in the convention game. problem for all businesses right now, each of which looks at job and career networking from 7 a.m. to 8 a.m., followed The current name doesn’t do that. Rather, it’s cre- and it’s likely to get worse long before it differently than the other. What jazzed by the panel discussion and Q&A. To the Boomers might have little value to register, call 216-771-5158 or visit www ating confusion in the minds of meeting planners gets better. It’s one reason we launched our weekly e-newsletter on staffing and Generation X, and what that crowd cares .crainscleveland.com/breakfast. See you beyond the region, according to Jim Bennett, the human resources issues a few months about in their work might have no meaning there. ■ former McKinsey & Co. consultant whom developer MMPI Inc. recently appointed to oversee the project it’s building. As representatives of MMPI and Positively Cleve- LETTERS land — the city’s convention and visitors bureau — go out to sell Cleveland as a meeting place, they “really find (the current name) unhelpful,” Mr. Up with second chances at employment Bennett told Crain’s editorial board last month. Also unhelpful is the medical mart name, given ■ I would like to thank Brad Friedlander from opportunities even long after their Jill Rizika the way that portion of the project is evolving. for the opinions expressed in his May 21 debt to society has been paid. Executive director The medical mart concept envisioned permanent Personal View, “Give criminals another According to a study released in 2010 Towards Employment showrooms leased by medical equipment vendors. employment shot,” and for his track by the Center for Economic and Policy However, the input Mr. Bennett is receiving in record of giving second chances to job Research, in 2008 the U.S. economy was Political centrists minimized applicants with criminal backgrounds. estimated to have lost $57 billion to $65 meetings with health care industry leaders is that At Towards Employment, we have billion in reduced output of goods and ■ My children will never fully appreciate the space should be more than static rooms. Among helped thousands of individuals with services from people with prison records the artistry behind pressing “play” and the possibilities: areas that offer views of the future barriers to employment find and keep due to their lack of employment. Towards “record” on a boombox at the precise of medicine, and others where early-stage biotech jobs. In 2004, we added specific services Employment has sought to ameliorate moment when the DJ stops speaking to companies — both local and from abroad — can for those with criminal backgrounds, this problem by helping ex-offenders tape a favorite song. They will never hear showcase their innovations. and since that time have placed more than prepare for and find employment while a busy signal when dialing their friends. Rather than be enslaved to a concept, the pro- 1,350 individuals with past convictions working with employers to meet their And, they will most likely shave 30 pounds from their backpack loads by ject’s backers should go with the industry flow and in full-time jobs. Mr. Friedlander’s expe- staffing needs. housing millions of pages of textbooks should transform that part of the complex into a rience that people with criminal records Through our combination of services are “often model employees” is shared and employer relationships, we are working on a 10-ounce tablet. “health innovation center” or something similar to by many of our employer partners. to make sure that individuals with crim- I’m OK with this. give it a dynamic flair. The focus should be on making Our participants have a breadth of inal backgrounds have the opportunity What concerns me, as Brian Tucker the investment a success, not on bemoaning the skills and experiences that could be an to take advantage of their second chance thoughtfully wrote about in his May 14 “failure” of the medical mart. asset to many businesses; however, and play a role in improving our local commentary, “Yet another defeat for many with past convictions are barred economy. See LETTERS Page 6 20120604-NEWS--5-NAT-CCI-CL_-- 6/1/2012 10:38 AM Page 1

JUNE 4 - 10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5

THE BIG ISSUE Has the environment downtown changed — for better or worse — since the casino opened in May?

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com

Publisher/editorial director: Brian D. Tucker ([email protected]) Editor: Mark Dodosh ([email protected]) Managing editor: Scott Suttell ([email protected]) TASHA MCCRORY CHRISTOPHER WOODWORTH MICHAEL J. TURNER EMILY BOYLAN Sections editor: Amy Ann Stoessel ([email protected]) Cleveland Cleveland Cleveland (and an Americab Cleveland Assistant editor: I think it’s changed for the better. The I think since the casino opened, the driver for 23 years) I’ve noticed a difference just as far as Joel Hammond ([email protected]) police are patrolling a lot more, the downtown atmosphere has improved, I really think it’s changed for the better, police and security, specifically around Sports Senior reporter: atmosphere is a lot better and the especially with people taking the oppor- not only because it’s better for my the casino. ... It’s definitely a lot more Stan Bullard ([email protected]) hotels are filled. They’re booked for, tunity to attend events downtown and business, it’s better for the city. It busy. But I think that it’s been a posi- Real estate and construction like, months in advance. then also going to the casino. ... But makes the city look more vibrant at tive change as far as businesses Reporters: the big question is, is this short term? night, makes it look alive. booming everywhere down Euclid. Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Ginger Christ ([email protected]) Manufacturing, marketing and retailing Research editor: a portfolio company of a portfolio company of Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Industrial Sands has acquired Marketing director: has been acquired by Lori Grim ([email protected]) has been acquired by has been acquired by an affiliate of Marketing/Events manager: Christian Hendricks ([email protected]) Marketing/Events coordinator: Jessica Snyder ([email protected]) Advertising sales manager: Nicole Mastrangelo ([email protected]) Senior account executive: Sell-Side Advisor Sell-Side Advisor Sell-Side Advisor Buy-Side Advisor Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsey Nordloh ([email protected]) Office coordinator: Toni Coleman ([email protected]) Digital strategy and development has received funding from has sold manager: Stephen Herron ([email protected]) HMR Acquisition Company, Inc. Web/Print production director: has been acquired by Craig L. Mackey ([email protected]) Production assistant/video editor: has completed a Steven Bennett ([email protected]) control recapitalization $75 Million to Graphic designer: Private Equity Lauren M. Rafferty ([email protected]) Placement Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Sell-Side Advisor Financial Advisor Sell-Side Advisor Sell-Side Advisor Credit: Todd Masura, 313-446-6097 ([email protected]) Audience development manager: Erin Miller ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Delivering results Rance Crain: President Merrilee Crain: Secretary We know that successful, long-term business relationships depend upon delivering Mary Kay Crain: Treasurer results for our clients. William A. Morrow: At KeyBanc Capital Markets,® more than 500 professionals leverage extensive industry Executive vice president/operations Brian D. Tucker: Vice president knowledge, equity and debt capital markets expertise, and a leading merger and Robert C. Adams: acquisition advisory practice to deliver strategic solutions that help our clients Group vice president capitalize on opportunities. technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 Film credit extension awaits Kasich By JAY MILLER “We have a lot of people who want the available credit will help build [email protected] to come to here,” Mr. Schwartz said businesses that cater to the film and during an interview May 24 in his video industry and will convince The expected extension of the state Caxton Building office overlooking people who aspire to careers in front film tax credit that wooed produc- Progressive Field. “But people are of or behind the cameras to stay here. tion of this summer’s blockbuster waiting; they’re going to go where Mr. Schwarz added that the movie, “The Avengers,” to Cleveland they can get a tax credit.” “Avengers” experience will be a valu- should help boost the region’s embry- The legislation passed the Ohio able tool he can use to sell the region. onic film industry. House May 24 and awaits the gover- “It was amazing to watch how the As he waited in late May for the nor’s signature. A spokeswoman for city came together to make this hap- Legislature to move House Bill 508 Gov. Kasich said last Thursday, May pen,” he said. “There is no other city in — one of three pieces of legislation 31, that the bill reached the governor the United States that would have that make up Gov. John Kasich’s the previous day and is under review done what we did. It showed we are mid-term budget update — Ivan by his policy staff. He has 10 working capable of a ‘can-do’ approach.” Schwarz, executive director of the days to sign the bill. In advance of the new legislation, Greater Cleveland Film Commis- HB 508 increases the amount of the film commission contracted with sion, was planning a trip later this tax credit available to film makers to Cleveland State University for a month to Los Angeles to see which $20 million a year from $10 million study of the industry’s impact in the movie productions he can bring to for the next two years. Mr. Schwarz state. That study looked at 16 movie Northeast Ohio in the next two years. said the extension and doubling of projects filmed in the Cleveland area over the last three years and found that for every dollar in tax credit awarded, the film companies returned $1.20 into the state’s economy and provided a total of $35.5 million in labor income. ■ LETTERS continued from PAGE 4 political reason,” is that with every election cycle more and more centrist leaders are falling prey to the extremist fringes of their respective parties. My former boss, U.S. Sen. Richard Lugar of Indiana, was the most recent political victim. In a statement following his primary defeat, Sen. Lugar clearly and elo- quently reminded the country that “bipartisanship is not the opposite of principle.” Is anyone listening? I’m willing to put my nostalgia for the NFL before free agency and riding bicycles sans helmet to rest. However, I don’t believe that we are progressing as a society when we encourage our children to design only in black or white rather than appreciating the many shades of grey that exist between their beliefs and the beliefs of others. This is not a problem unique to politics, though it may be best observed in that arena. Rather, this culture of ideological inflexibility is prevalent in every industry. We have all witnessed the damage that “group-think” can inflict on an organization. Yet how many of our organizations overtly or tacitly promulgate this type of activity? Our leaders, both public and private, need to teach our children how to develop their own ideas and opinions. They need to show them that the world is far more complex and nuanced than that which exists only in their minds or in their parents’ home. They need to demonstrate that it’s OK to seek out new things. It’s right to ask good questions. And, ideas conflicting with their own are neither “better” nor “worse” categorically. They are simply “different” and valuable data points of reference for forming new thoughts. True leadership is teaching younger generations how to listen to and study differing ideologies to develop their own ability to think critically. The purpose is not to draw a box around their own beliefs, but to help affirm or adapt them appropriately. I hope that the pendulum will swing and centrism will once again be en vogue. I hope that society will, at some point soon, embrace the value of reaching across the aisle in pursuit of the greater good. We’ve resurrected other ideas from earlier generations. Wouldn’t this be one worthy of borrowing?

John Znidarsic University Heights 20120604-NEWS--7-NAT-CCI-CL_-- 6/1/2012 2:46 PM Page 1

JUNE 4 - 10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7

WHO TO UH’s Ahuja center ahead of operating estimate WATCH IN The idea behind Ahuja, Mr. Zenty warranted a situation — and Ahuja HEALTH CARE Chagrin Highlands location offers broader said, was to ease the commute for is a strong example of this — where patients in the eastern suburbs who they’re starting to snatch up the We’re looking to profile some of footprint, draws ‘very favorable’ payer mix frequented the system’s modestly northern tier of that Akron market,” the region’s health care up-and- sized hospitals in Bedford and Rich- Mr. Ryan said. comers in “Who to Watch: Health By TIMOTHY MAGAW about 44% of its patients carrying mond Heights but found it difficult Care,” a special section slated for [email protected] commercial insurance, another 44% to travel to Case Medical Center for Proceeding with caution publication July 16. enrolled in Medicare and the rest more acute care. Also, Ahuja has When Ahuja opened in March If you think you know who will be Despite a tepid economy and paying out of pocket or with Medic- helped draw new patients into the 2011, it employed about 400 people, among those leading the Northeast the region’s population stagnation, aid. system from the south. but that number has grown to about Ohio health care scene of the University Hospitals’ roughly 1-year- To keep Ahuja’s engine humming, “It’s given us that broader foot- 700. Also, the adjacent medical future, drop an email to sections old, $298 million Ahuja Medical Ms. Juris has been tasked with print because we also now have a pavilion that was relatively empty editor Amy Ann Stoessel, astoessel Center in Beachwood is on solid cementing the medical center’s rep- large number of patients coming during the opening since has filled. @crain.com, or call 216-771-5155. financial footing and is shoring up utation as the community hospital from Medina and Akron,” Mr. Zenty Long-term plans at Ahuja call for Please send your suggestions by the health system’s presence in of choice in the area it serves. Part said. “A number of physicians we have two more patient towers on the Monday, June 18. Cleveland’s eastern suburbs. of that job includes expanding pro- in those communities are referring medical center’s 53-acre campus. There are no hard and fast Ahuja achieved a positive operating gramming, such as wellness semi- to Ahuja because it’s an exquisite But given mounting concerns requirements for possible inclusion margin in the first quarter of 2012 — nars and health screenings. facility. facing the health care field, espe- in this section other than that the more than a year earlier than antic- “We have to come to life in the “Ahuja has allowed us to continue cially at the federal level, Mr. Zenty candidate needs to exhibit the kind ipated — and is helping fuel Univer- community,” she said. “We’re brand our strategy where our goal is to wouldn’t speculate when construc- of potential that makes him or her sity Hospitals’ market growth. The new. People need to know we’re here.” bring world-class health care closest tion would start, or whether it may someone to watch in the health health system saw a 9% hike in to where people live,” he said. happen at all. care field. inpatient discharges in the first Zenty: It’s paying off Bill Ryan, president of the Center “We’re doing well and still have Also, mark your calendars and quarter of 2012 over the like period Ahuja is the first new hospital for Health Affairs, an advocacy group some capacity,” he said. “We want keep thinking about the region’s last year, while the entire market built in Cuyahoga County in three representing area hospitals, said a to make sure to be judicious.” future leaders, as this is the third stomached a slight decrease. decades and is the crown jewel of component of University Hospitals’ Mr. Zenty said UH is paying par- of these sections in 2012: “Who to In the 10 months Ahuja was open University Hospitals’ sprawling $1.2 strategy with Ahuja and its other ticular attention to potential ramifi- Watch: Law” will publish Nov. last year, patient volume totaled billion construction initiative, Vision Vision 2010 investments was to cations of the coming presidential 26. 11,700 at the 144-bed hospital that sits 2010, which launched in 2006. The solidify its rank as the second- election and the impending U.S. off Interstate 271 at Chagrin High- initiative also includes the $260 largest health system in the region, Supreme Court ruling on the consti- lands. That number, which includes million Seidman Cancer Center near behind the Cleveland Clinic. tutionality of President Barack stable outlook on its $831 million in surgeries and inpatient stays, is the system’s flagship hospital, Case Also, Mr. Ryan said University Obama’s expansive health care over- outstanding debt. Moody’s also rec- expected to climb to 20,600 for all of Medical Center in Cleveland, and Hospitals’ investments could help haul. ognized the success of University 2012 if the current momentum keeps new community health centers in stave off pressure from Summa “There is a lot of uncertainty in Hospitals’ expansion strategy, noting up, said Susan Juris, who signed on as Concord Township, Medina and Health System’s march north from the health care world,” Mr. Zenty that “the benefits of which are apparent Ahuja’s president last December. Twinsburg. Akron into the Medina market, where said. “We have no plans for any in growing market share and rev- “We’re off to a roaring start for University Hospitals CEO Tom Summa opened a health center in expansion right now.” enue which we expect to continue.” 2012,” Ms. Juris said. Zenty said in an interview that by all fall 2010 and an emergency depart- That wait-and-see attitude was “This is a multifactor strategy Ms. Juris said the medical center’s accounts the system’s investments ment in late 2011. recognized by Moody’s Investors we’ve put together,” Mr. Zenty said. balance sheet has been buoyed by — the largest in its more than 150- “It’s solidified (University Hospi- Service, which in April affirmed “Our plan is working exactly as we a “very favorable” payer mix, with year history — are paying off. tals’) market share, and it may have the health system’s A2 rating and had designed it.” ■ 20120604-NEWS--8-NAT-CCI-CL_-- 6/1/2012 3:57 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 Developers fear Clean Ohio changes Congratulations “We would have never started the the flexibility to redevelop contam- DAMON A. FRANGOS If altered, brownfield project without brownfield money inated properties without end users USA Parking Systems, Inc is happy to for it,” Mr. Geis said. He also noted in place will hurt Ohio, he added. program would require that some tenants in the structure, welcome Damon as their in house counsel for which is designed to keep in Cleve- The case of 27 Colman The Frangos Group & USA Parking Systems, Inc. greater impact sooner land spinoff companies from Uni- Consider a project Mr. Davis versity Circle institutions, did not undertook in Cleveland’s Little Italy Best wishes as you begin your new career! By STAN BULLARD exist in 2008 when his team began neighborhood in which a Hemi- [email protected] undertaking the cleanup of the site. sphere affiliate removed 29 under- Congratulations Damon! Mr. Geis’ firm now is undertaking ground fuel storage tanks and Real estate developers and cities its fourth Midtown project. replaced 12 feet of topsoil so the with little virgin land available for “These sites were left for dead 20 land could be redeveloped as com- development are fretting that their years ago,” Mr. Geis said. “As devel- mercial or residential property. efforts to put environmentally tainted opers, we satisfied the (environ- The project got a $900,000 grant properties known as brownfields to mental) requirements to make them from the Clean Ohio Fund and site good use will receive a big blow if the productive. I did not make them work began in 2002. By the time state changes the criteria for how it dirty. I only made them better.” builder Andrew Brickman took over the site in 2008 and transformed it goes about doling out money to aid Why the change? with property cleanups. to sleek, modernist condo suites in Under the state’s Clean Ohio pro- For now, the state’s brownfield a project known as 27 Colman, the gram, developers and cities often could grant program remains in limbo. residential market had gone secure brownfield cleanup money The Kasich administration said through both boom and bust. even if they didn’t have tenants in earlier this year that it will accept no Today, all 27 condos on the site www.thefrangosgroup.com tow to occupy contaminated proper- new applications for brownfield have been sold for prices ranging ties they wanted to remediate. How- remediation under the Clean Ohio from $300,000 to $600,000 apiece. ever, Kasich administration officials Fund because state liquor profits “That points out the dramatic are indicating the state in the future that financed the program have impact of this program,” Mr. Davis will put an emphasis on issuing been shifted to JobsOhio, a private said. “The site had not been devel- cleanup money to projects that are entity Gov. John Kasich has entrusted oped because of the storage tanks. likely to produce jobs sooner than later. with shepherding economic devel- Without Clean Ohio, it would still Fred Geis, a member of the Geis opment efforts statewide. house storage tanks.” Cos. development firm in Streets- Laura Jones, spokeswoman for Maintaining the availability of boro who makes urban real estate JobsOhio, said the brownfield policy brownfield grants is a top issue with projects his personal mission, calls for JobsOhio is still under develop- NAIOP Northern Ohio, a trade the potential move a “crippling ment but is likely to include pro- group representing industrial and decision” that would harm urban grams offering grants — which office property owners, said Scott redevelopment, particularly by job- cities, developers and private prop- McCready, its president. NAIOP creating small businesses. erty owners prize — and revolving argues that grants rather than loans “We have been in development loans. Criteria for issuing loans and give private interests more incen- since 1967 but did our first brown- grants are not set, but Ms. Jones said tive to tackle blighted sites; it also field project three years ago,” Mr. the key change will be to require says the grant program has proven Geis said. “If it took us that long as a brownfield money to go where it it can attract private investment. developer to take on the liability, the can produce jobs the quickest. Brad Beckert, the city of Akron’s challenge and the learning curve to The change is a response to limited economic development engineering do a brownfield, how long do you state resources, Ms. Jones said. manager, said his city also is against think it will take a corporate middle Todd Davis, a nationally known changing the brownfield program. manager or a small business to do it?” brownfield legal expert and CEO of He worries about what it would In 2011, the Geis and Coyne families Hemisphere Development LLC of mean for small businesses that did the unheard of by putting Mid- Bedford, which redevelops tainted want to do modest expansions, town Technology Park, a suburban- properties, said it may seem sensible such as a company that wants to style office-warehouse building, to increase job requirements as a expand on a former dry cleaning smack in the middle of the city at condition of receiving a brownfield operation’s site next door. 7000 Euclid Ave. in Cleveland’s Mid- grant or loan. Nonetheless, Mr. Mr. Beckert also is concerned town neighborhood. The technology Davis said he believes the change is about the state doing away with park, regarded as a poster child for “going to stop brownfield develop- brownfield grants. He said Akron urban redevelopment, received a ment in its tracks in Ohio.” has found no takers for its brown- $750,000 Clean Ohio grant as part of People willing to spend money field redevelopment loan program, its financing. on real estate developments with a financed by a $1 million federal The project had no tenants at the brownfield component will gravi- grant. He expects the state would outset. The 128,000-square-foot tate to states with more generous find a similar lack of enthusiasm for a building is now 90% occupied. programs, Mr. Davis said. Losing brownfield loan program. ■

Gotham: Firm pushes for new terms EXCEPTIONAL LOUDONVILE FACILITY AVAILABLE FOR LEASE continued from PAGE 3 out of the region or sought less the compression of rents during the more lucrative markets. Duke sold expensive offices. Statistics from downturn. three office buildings in North Olm- online realty data provider CoStar Mr. King said the portfolio is sted last year but continues to own tell the tale: Vacancy in the Gotham making some payments on the 11 office buildings in Cleveland’s King portfolio is now 12% compared mortgage from cash flow, though not south suburbs that it has been unable to a mind-bogglingly low 2% at the the required monthly payment. to peddle. time of the purchase. For the first time, Mr. King The Gotham King portfolio includes Steve Egar, owner of the Egar revealed last week that he sold his newer office buildings, such as Metro- Associates brokerage in Beachwood, ownership stake in the portfolio politan Plaza and One Harvard said if Orix succeeds in wresting con- prior to the commercial downturn, Crossing in Highland Hills, as well as trol of the properties from Gotham although he declined to say specifi- others dating to the 1980s, such King in the court action, the next cally when he did so. He continues as Corporate Circle I, II and III in choice it faces would be a hard one: to manage the portfolio. Pepper Pike. hold the buildings or sell them. Mr. Charles Ishay, a Gotham principal Alec Pacella, a senior vice presi- Egar estimates that if the buildings named personally in the lawsuit, 0(5,//$7&2857/28'219,//(2+ 0,&+$(/-2&&+,21(52 PLFKDHORFFKLRQHUR#RPFOHFRP dent of the NAI Daus brokerage in were sold at today’s rates, they declined comment on the foreclo- 7RWDO6)$YDLODEOH 'LUHFW ZZZRVWHQGRUIPRUULVFRP Beachwood, called the Gotham King would go for half the prior price. sure action, though he said he later ¶&OHDU+HLJKW purchase “far and away the most In an interview last Thursday, May may discuss the litigation. Gotham 'RFNV expensive suburban office sale on a 31, Mr. King said Gotham King is Realty Holdings has a substantial 'ULYH,QV per-square-foot basis.” Comparable continuing to negotiate for new loan portfolio of holdings ranging from 3DUWQHULQJZLWK 2ZQHU2FFXSLHG3URSHUW\ +DO0D[ÀHOG&&,06,25 sales at the time were about 20% terms despite the foreclosure filing. New York to Chicago, according to KDOPD[¿HOG#KDOPD[¿HOGFRP less, he said. Mr. King maintains the portfolio’s its website. :HW6SULQNOHU 3KRQH +HDY\3RZHU ZZZKDOPD[¿HOGFRP Then the worst recession in vacancy was higher at its purchase Three calls to Orix were not than CoStar suggests, putting it returned by Crain’s deadline last Fri- 'LYLVLEOHWR6) decades wreaked unexpected havoc on the office market, driving up instead in the 7% range, but he day. Orix’s Cleveland attorney, Michael vacancies as tenants failed, pulled agrees the price was too high given Shuster, declined comment. ■ 20120604-NEWS--9-NAT-CCI-CL_-- 5/31/2012 1:49 PM Page 1

JUNE 4 - 10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 In survey, Indians gauge appetite for new premium seats

park, what mix of premium seats Proposal would resemble club area, but would it have? How many suites?,” Mr. Shapiro said in April. playing field would be visible from lounge In addition to its club seat research, the Indians already have repurposed By JOEL HAMMOND that the survey questions are part of a number of the stadium’s suites: In [email protected] the Indians’ usual communications 2008, the team combined four suites with key stakeholders. into the Champions Suite, which can The Cleveland Indians are gauging The Indians conducted similar be rented on a per-game basis customers’ opinions of a new pre- research last October about club-level and holds up to 60 fans. One suite mium lounge at Progressive Field seating at Progressive Field. Before between first base and home plate that would continue the team’s this season began, the team lowered now is known as the “Fan Cave,” repurposing of the stadium’s suites. club seat prices — to a range of $55 complete with a billiards table and According to a stadium map to $65 from a range of $80 to $100 — flat-screen televisions. Another is included in a survey sent to premium and made aesthetic improvements home to the Indians Social Suite, ticket buyers, the lounge would to the club seats. where influential social media users encompass about eight suites either Various options for the premium gather for games. on the first-base side of home plate, lounge are listed in the survey, and In May, the Indians unveiled their adjacent to the stadium’s press box, respondents are asked whether they Kids Clubhouse, a new children’s or further down the left-field line, would renew in their current seats play area in right field that provides adjacent to the current Champions or opt for the premium lounge children a place to roam while par- Suite. It would seat 80 to 100 and, scenario presented in the survey. ents can see the action on the field.

unlike the team’s club level, would Pricing options vary from $100 for a PHOTO COURTESY OF THE CLEVELAND INDIANS The team converted a number of include views of the field from dining premium all-inclusive buffet with A youngster enjoys the grand opening of the Cleveland Indians’ new “Kids Club- suites to form the 10,000-square-foot areas, according to the survey. alcohol included to $125 for pay-as- house” at Progressive Field in May. The Indians repurposed about a half-dozen area. The club level, located in the you-go food with no alcohol included suites to for the play area for kids, an ongoing effort to turn unused areas of the Progressive Field, which opened second deck along the first-base line, to $150 for the same premium all- ballpark into profit. in 1994, was built with 121 suites, at also features a climate-controlled inclusive buffet and alcohol. one point the second-most in the lounge and all-inclusive food, but The survey also asks whether In April, the Indians hired former Shapiro said Mr. Robbins would be majors behind the Texas Rangers’ its lounge is set back from the field. customers would be more likely to Cleveland Browns ticket sales man- charged not only with increasing Ballpark at Arlington. In 2010, the The Indians note in the survey commit to multiple years of premium ager Ryan Robbins, who then was sales now, but also mapping out Indians began offering a free suite that the premium lounge concepts lounge seats if price certainty was with the Oakland Raiders, as their strategies for the future of the pre- rental — valued between $2,000 to are “hypothetical; the Indians have included in their purchase. new director of premium seating. At mium areas. $6,500 — for new and renewing season not committed to providing any of the time, Indians president Mark “If we were going to build a ball- ticket holders. ■ the concepts” contained in the A work in progress survey. Curtis Danburg, the team’s The Indians continue to investi- senior director of communications, gate ways to make little-used parts said last week the lounge concept is of Progressive Field — often the most “in its infancy and the team is expensive territory at the ballpark simply testing the waters,” adding — more profitable or fan friendly.

Clinic spinoff installs rare, powerful imaging machine 3-D microscope used by Renovo Neural in demand

By CHUCK SODER the Ohio Third Frontier economic [email protected] development program, Renovo was formed to commercialize technology Diego Bohórquez, a post-doctoral developed by Drs. Bruce Trapp and fellow at Duke University, is looking Wendy Macklin at the Cleveland for “a needle in a haystack on the Clinic. moon.” They developed cell-based formulas Renovo Neural Inc. has a powerful designed to identify multiple sclerosis new tool that could help him find drugs and test their effectiveness, it. The Cleveland Clinic spinoff, and they figured out how to create founded in 2008 to develop and test multiple sclerosis-like brain damage multiple sclerosis drugs, has begun in animals, Dr. Medicetty said, noting leasing an extremely rare 3-D elec- that the company tests drugs on tron microscope that is proving animals at the Clinic. Renovo also popular with researchers who study aims to develop ways to test treat- other medical conditions and bodily ments for stroke, Parkinson’s disease functions. and other conditions, he said. Without it, Dr. Bohórquez would Drug development still is in the have a much harder time finding the company’s long-term plans but has elusive neural synapses that allow taken a back seat to generating the intestines to sense food and reg- revenue from the company’s drug ulate appetite. testing services, which are used by “With this technology, we are pharmaceutical companies, and tissue able to reconstruct a whole network imaging services made possible by of neurons,” Dr. Bohórquez said. the Sigma VP-3View, Dr. Medicetty The 3-D electron microscope — said. Renovo Neural, which employs the third Sigma VP-3View system to nine people full time and two part be installed in the United States — time, aims to turn a profit this year, can cut a block of tissue into dozens he said. However, he would not pro- of layers and provide detailed images vide sales figures. of each one, said Renovo Neural Renovo Neural is the first company CEO Satish Medicetty. By contrast, to use the Sigma VP-3View system to a traditional electron microscope provide a service, said Joel Mancuso, can scan only one slice at a time. applications manager for Gatan Inc. “Time and cost wise, this tech- of Pleasanton, Calif., which devel- nology makes a huge difference,” he oped the system with Carl Zeiss said. Microscopy LLC of Thorn-wood, N.Y. There is a four-week wait to use Mr. Mancuso said he knows of no the 3-D electron microscope, which similar electron microscope. would have cost about $700,000 to “Renovo is really in position to buy, Dr. Medicetty said. make it the norm,” Mr. Mancuso With the help of $3 million from said. ■ 20120604-NEWS--10-NAT-CCI-CL_-- 5/31/2012 2:32 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 In time for summer, Cleveland’s menu for frozen treats expands

twice before you decide to come into As popularity grows, so does number of stores our neighborhood,’” Mr. Stark said. Stark Enterprises’ experience in By GINGER CHRIST of the last seven years and should negotiating leases, identifying real [email protected] rise for the foreseeable future, estate and drafting building plans according to IBISWorld Inc., a Cali- enables it to open stores faster than Frozen yogurt is hot. fornia-based market research firm. mom-and-pop shops, Mr. Stark said. Just ask the Bechke family, owners Frozen yogurt retail store revenue While the company’s plans are to of the Lemonberry frozen yogurt rose 2.8% in 2011 to $723.1 million, expand in northern Ohio and nearby chain. They plan to add a fourth according to IBISWorld, which fore- markets such as Pittsburgh and Erie, store to the shops they operate in casts a 2.9% gain in 2012. Pa., Mr. Stark isn’t dismissing the Brecksville, Medina and Strongsville. Bob Stark, president and CEO of idea of acquiring franchise rights for MCKINLEY WILEY Husband-and-wife team John Stark Enterprises Inc., a Cleveland- other states. The Lemonberry yogurt chain — with co-owner Joy Bechke (center) and daugh- and Joy Bechke, who run their based real estate development “It certainly piques our interest in ters Lindy Bechke (left) and Kari Bechke-Algaier pictured here — plan to add yogurt shops with the help of their company, sees a relatively limitless thinking about how we could do this soon a fourth store to their roster. two daughters, in 2010 debuted one market for frozen yogurt. in other markets,” Mr. Stark said. of the first self-serve yogurt shops in Mr. Stark initially approached Menchie’s main man and plans to have doubled that which to create a sundae. the area with the Strongsville store. Menchie’s as a potential tenant for number by the end of this year, said Lemonberry, for one, offers cus- In the two years since, the local Mr. Stark’s company, Yogurt Treats the developer’s Ohio retail properties. Kelly Wherley, Lam Ho operations tomers more than 60 toppings — frozen yogurt scene has exploded, LLC, is the northern Ohio franchisee However, the more Mr. Stark learned manager. fruits, cereals, nuts and chocolates with stores popping up throughout for Menchie’s Frozen Yogurt. It about the frozen yogurt chain, the “Although we receive many — and rotates 50 flavors among its Northeast Ohio. opened its first store last summer more taken he became with the inquiries from (retail) centers around three stores. “I think it’s getting saturated to a on Chagrin Boulevard in Woodmere, concept. the country, we have to be selective “It’s an experience to do it your- certain point,” John Bechke said, and since has added another 10 Neighbors, and rivals of where we choose to go,” Ms. self,” John Bechke said. “You can though he maintains there remains Menchie’s to the area. Wherley said. “We want to grow, but make it as healthy as you want or as “room for growth from competition.” It is on course to open another six Yogurt Vi, a fro-yo chain owned by it has to be controlled.” large as you want.” Frozen yogurt, known to aficiona- by July and 14 by the end of the Maumee-based Lam Ho Enterprises Ms. Wherley said she doesn’t Customers pay by the ounce at dos as fro-yo, has risen in popularity year. Mr. Stark wants Menchie’s to Inc., opened its first store more than think the Northeast Ohio market is self-serve shops, with total costs nationwide. become the McDonald’s of the local a year ago on the campus of the Uni- oversaturated with fro-yo shops. typically $4 to $7. Revenues from fro-yo stores fro-yo market. versity of Cincinnati. The company “We believe that the market still has increased in the aggregate in each “We say to the competition, ‘Think had four stores by the end of 2011 opportunities, and because of how So, how does horrible taste? we operate our business, we know The growing presence of these that there is always room for the frozen yogurt shops doesn’t go next Yogurt Vi,” said Ms. Wherley, unnoticed by other sellers of frozen whose company opened a store last treats. Celeste Blau opened The Sweet month in the Greens of Strongsville Spot on Detroit Avenue in Lakewood shopping center, less than a quar- last July with four family members. ter-mile from the Bechke family’s She opted to open a gelato store in OglebayMeansBusiness! Lemonberry store. part due to the number of ice cream Yogurt Vi stores all feature bright shops in the area. Gelato is similar to colors and wireless Internet; some ice cream but has less butterfat. have either flat-screen TVs showing “I think of our competition as not music videos or surround sound just gelato companies,” Ms. Blau said. music systems. “I definitely think that if there Ms. Wherley said despite requests weren’t as many frozen yogurt shops to franchise the chain, Yogurt Vi out there, we would do better.” stores remain corporate-owned. But Ms. Blau isn’t complaining. However, the company might con- The gelato shop has had a successful Morethanahundredyearsago,EarlW.Oglebayestablishedatraditionofgenerous sider franchising in the future. first year, increasing business as hospitalityathissummerestate.Today,OglebayResortcontinuesthattraditionwith “This has allowed us to control months pass and the company’s our name, our reputation and our reputation spreads. extraordinaryfacilitiesandamenities,inapicturesquenaturalsetting,ensuringyournext brand,” said Ms. Wherley, whose The gelato store changes its flavors meetingwillbebothmemorableandsuccessful. company also has stores in Legacy based on the seasons and coming Village in Lyndhurst and Great events. For example, the store, which Northern Mall in North Olmsted, and only uses fresh, local ingredients, soon will launch stores at Belden will start serving raspberry gelato Village Mall in Canton and at Kent once the fruit comes into season at State University. Rosby Berry Farm in Brooklyn Heights. Ms. Blau said customers enjoy Nuts to you testing the shop’s flavor experi- Mr. Stark has a simple explanation ments, even ones that flop. Take the for the popularity of the frozen treat. new black sesame flavor, which Ms. “It’s a health food. It tastes great,” Blau admits is “horrible.” he said. “Even if your mistakes are horri- A number of frozen yogurt shops ble, people want to try it. 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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012

welcoming, a place where people residents he hopes will be spilling can meet friends,” Mr. D’Angelo said. out of nearby apartment and con- Neighbors: Office tenants also lure eateries At mid-morning last Tuesday, dominium buildings as they look May 29, Nexus was quiet, with a few for places to gather. continued from PAGE 1 They were attracted mainly, chefs developing new concepts, are young people sitting at tables, warehouses and office buildings however, to the growing residential responding to this void, and franchised laptops open, in the spacious café. Playing off a rebound and businesses bringing offices back population. and chain restaurants that were The meeting space in back holds And there’s more. Last month, downtown — often to attract the 20- “There’s a waiting list at 668,” hanging back, waiting for a stronger 140, Mr. D’Angelo said. BRGR 9, a spacious burger joint that and 30-somethings — downtown is Mr. Kabat said, referring to the 236- market, are beginning to arrive. For At present, Nexus is open until 9 offers hundreds of beer options, getting back its smaller-scale eating suite Residences at 668, a short jog example, a Potbelly Sandwich Shop p.m., but Mr. D’Angelo said he opened at 1382 W. Ninth St., while spots. west on Euclid. “We just knew we is slated to open this Wednesday, hopes to stretch out closing time earlier this year, at 1300 W. Ninth, El They are not, however, the grilled had a solid concept and that people June 6, at 515 Euclid, as the 200-store with special events such as poetry Güero began serving up tacos and cheese and meatloaf places of old. would come.” Chicago-based chain makes its readings and live music. burritos. Their menus are trendy and varied Like a real estate broker, Mr. entrance into the Cleveland market. In the Warehouse District the Michael Deemer, vice president as they try to attract singles and Kabat can tick off the names of And the local franchise holder for next afternoon, Charka Exotic Indian of business development for the couples too busy to cook. nearby office buildings that devel- Five Guys Burgers and Fries, a made- Cuisine co-owner Beljinder Dadra Downtown Cleveland Alliance, a “We want to be a small, familiar opers are buying for residential ren- to-order burger joint, may not be sat in the quiet of his new restaurant, nonprofit that servers the center city, place, where people stop on their ovation; among them are the Hanna far behind. Queried by email about after surviving his first-day lunch isn’t surprised by the influx of eateries. way home from work,” said Josh Annex at Playhouse Square and the her interest in downtown, Raji rush. “As the residential population Kabat, co-owner of Cleveland Pickle, former East Ohio Gas Building Sankar, co-CEO of regional fran- Mr. Dadra and his partner, Resham downtown has grown, it’s caught a dozen-seat nook in the City Club further north on East Ninth Street. chise holder Wholesome Enterprises Lal, a native Clevelander, took over the attention of restaurateurs,” said Building at 850 Euclid Ave. LLC, said, “We are excited about the space formerly occupied by Mr. Deemer, who cited 2010 census Cleveland Pickle offers sandwiches Five Guys in its future? downtown and we have it on our Waterstreet Grill and more recently data that pegged downtown at 10,500 ranging from banana and peanut Cleveland Pickle and a handful of road map for the future.” the Sixth City Diner. The pair chose residents. “We’re now at 95% or butter — the Cardiac Kid — to the other restaurants that opened in Mr. Starinsky sees these places their location because they saw only greater downtown residential occu- Downtowner, with pickles, goat the last few months or are set to open satisfying a need for eateries with burgers and pizza in the rapidly pancy.” cheese, pine nuts, spinach, roasted in a few weeks are what Thomas Internet connectivity, carry-out food growing residential neighborhood. But it isn’t just new city dwellers tomato pesto and balsamic apricot Starinsky, associate director of both and late hours. “We wanted to bring something that are drawing restaurants down- spread. It also features a variety of the Historic Warehouse District different,” he said. “There’s not town. AmTrust Financial Services, a pickles. Development Corp. and the Historic Currying favor with curry much variety here.” New York insurer, plans to move “We want to create memorable Gateway Neighborhood Corp., calls A block south of Cleveland Pickle, They’re bringing with them from nearly 1,000 employees into the sandwiches,” said Mr. Kabat’s partner “third spaces.” These spaces are not at 627 Prospect Ave., Mickey D’An- State College, Pa., where they oper- office building at 800 Superior Ave., and fiancée, Kiaran Daley. “We’ve offices for workers or apartments gelo sees the spacious Nexus Café & ate a similar restaurant called India and BrandMuscle Inc., a software had people come back five days a for residents, but the kind of places Coffeehouse as first and foremost a Pavilion, a menu of lamb and tan- seller, is moving 150 people from week.” that knit a neighborhood together. neighborhood meeting place. To doori Indian dishes. In particular, Beachwood to 1100 Superior Ave. The pair fixed on downtown after “As the residential base grows and amplify the point, Mr. D’Angelo’s they offer a lunch buffet of Indian Mr. Deemer noted that for the leaving Reddstone, a restaurant occupancy (in residential buildings) partner in the 100-seat space is the specialties. first time in several years, downtown in Cleveland’s Battery Park neigh- fills, there’s been nothing” for Gateway Church Downtown, which Mr. Dadra said the Warehouse office vacancy has declined below borhood where Mr. Kabat was owner neighborhood people in the way of holds Sunday morning services in District’s mix of offices and resi- 20%. and chef. They believe the risk of modest dining options, he said. an adjoining meeting hall at the dences offers the restaurant two strong “What we’re seeing, similar to their location in the city’s struggling “You can’t go to the Blue Point back of the café, after meeting for markets — the lunchtime office what’s happening nationwide over financial district is mitigated by the every night,” said Mr. Starinsky, several years at Pickwick & Frolic on crowd and residents in the evening. the last five to 10 years, the trend restaurant’s modest rent and the referring to an upscale restaurant in East Fourth Street. Charka, too, offers Wi-Fi for the has been to moving back in” to the lunch traffic from nearby office the Warehouse District. “We were looking for a venue laptop crowd, and Mr. Dadra said center city, he said. “That’s where buildings. Restaurateurs, primarily local space, but also a café space that is he’ll be open until 11 p.m. for the the young talent wants to be.” ■

WiW tht itss connveenin ennt locacatit on andd easa y accesssibbiliti y tot thee heartr of downtownn Cleevev lal nd, itt’s’s timme tot putt Bururkek to woorkk foro youo r compm any.y Finnd ouut momoree at bub rkkeae irpoort.ccomm. BURKE MEANS BUSINESS. 20120604-NEWS--13-NAT-CCI-CL_-- 5/31/2012 3:01 PM Page 1 20120604-NEWS--14-NAT-CCI-CL_-- 5/31/2012 4:16 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 Established locally, some restaurateurs looking beyond NE Ohio Melt, Winking Lizard’s Lizardville concept among those planning to spread their wings

By GINGER CHRIST Northeast Ohio but could open the [email protected] restaurants in Dayton and Cincin- nati. The company also is considering Looking to grab a bite of cheesy new concepts for local markets such goodness at Melt Bar and Grilled, as Brunswick and Medina. one of Northeast Ohio’s iconic restau- Yet, the company doesn’t intend rants? Take a number (or, to be to grow beyond the Buckeye State. accurate, a nametag from the jack- “It’s our home,” Mr. Callam said. o-lantern). The wait time for a table at the gourmet grilled cheese eatery Flipping out in Columbus is upwards of an hour any day of the When Michael Schwartz in January week and show no signs of abating. 2011 launched Flip Side, a gourmet Matt Fish, the Since opening Melt in 2006, owner burger restaurant, in Hudson, he founder of the Matt Fish not only has expanded thought in the back of his mind it popular Melt the original Lakewood location but was a concept worth recreating. restaurants, also has opened two more restau- Initial plans didn’t call for expan- says he’s now rants — in Cleveland Heights and sion, but just 14 months later, Mr. ready to expand Independence — to alleviate the Schwartz and his partners, Shawn the brand out- demand. Yet, rather than redirect and Tiffany Monday, opened a larger side of North- customers, Melt only has attracted showcase-style Flip Side in the east Ohio. more, which isn’t causing Mr. Fish Easton lifestyle center in Columbus.

FILE PHOTO/ sleepless nights. Now they’re developing two new JASON MILLER With plans already in gear for a sites — in Chagrin Falls and in location in Mentor, Melt now is Cleveland’s Flats — that are set to among a handful of Cleveland-area open in early winter and in summer restaurants that either are looking 2013, respectively. to grow beyond their native land or “The concept itself allows for are in the process of doing so. duplication,” Mr. Schwartz said. Mr. Fish said he likely will open a The rising popularity of fast- restaurant in Columbus within the casual restaurants, coupled with a next year and could open a site in continued demand for organic, Akron within the next two years. His locally sourced food, creates a new plan is to open sites within a three- market for independent restaurants hour radius of Cleveland on a pace that can blend those two concepts. of one new restaurant per year. To build on that trend, Mr. Columbus, he said, could be another Schwartz and his partners also are Cleveland. However, he also intends opening a Neopolitan-style pizzeria to open one or two more restau- and bakery, Three Palms, in Hud- rants in Northeast Ohio. son, and a Mexican restaurant, Dos Mr. Fish didn’t start out with the Tequilas, in the Flats. Both ideas idea of creating multiple Melts. have potential for expansion because “Our plan was to have just one. they will be chef-driven, casual-eating We never thought about expanding,” experiences, Mr. Schwartz said. Mr. Fish said. Slow but steady However, with the help of a commercial production kitchen Other restaurant operators that it opened last year in downtown have expanded to multiple locations Cleveland, Melt now has the locally are treading more carefully resources to spread its influence. before going beyond their home base. While most of its new sites will be in Take Larry Shibley, who along with BRIDGING THREE GENERATIONS OF TALENT the range of 4,500 to 5,000 square his two brothers and sister opened feet, the company would have the their first Yours Truly restaurant in For the first time in history, U.S. businesses have three distinctly different option to open smaller sites without 1981. Today, they run eight locations. generations working together – Baby Boomers, Generation X and Millennials. preparation rooms. “We’re not on a real fast track,” “By building this facility, we have Mr. Shibley said. Is your business prepared to manage the challenges and capitalize on the the capacity to really expand and Mr. Shibley, president of Yours opportunities of this diverse workforce? not be limited to where we can go,” Truly’s parent, Shibley Management, Mr. Fish said. said the company has opened new locations only as resources have Lizard leaps forward allowed. Consequently, they have no -FBSOIPXUPNBYJNJ[FUIFQPUFOUJBMGPSFBDI Winking Lizard Inc. already has debt on the restaurants. achieved small-chain status and is To keep growing the brand without t%JTQFMMJOHNZUITBOETUFSFPUZQFT fueling its growth through both opening new locations, the Shibleys t*EFOUJGZJOHTIBSFEWBMVFTBOEFYQFDUBUJPOT expansion and change. added patios, liquor and even t6TJOHUFDIOPMPHZUPCSJEHFHFOFSBUJPOT The company, which operates expanded their menu. And, two Winking Lizard Tavern, known for years ago, they introduced a catering t#VJMEJOH)3TUSBUFHJFTUPQSPNPUFJODMVTJWFOFTTBOEEJWFSTJUZ the signature pet lizards in each of service focused on party trays. the restaurants, last year launched Through those changes and the its first Lizardville — a beer store introduction of new stores, Mr. SPONSORED BY: and whiskey bar. Shibley said, Yours Truly has man- The first Lizardville opened in aged to increase sales by an average 4HURSDAY *UNEs4HE2ITZ #ARLTON #LEVELAND April 2011 in Bedford Heights and of 10% annually. AMs"REAKFAST.ETWORKING the second opened last week in Mr. Shibley said Yours Truly, AMs0ANEL$ISCUSSION Rocky River. Jim Callam, president which only operates restaurants in of Winking Lizard Inc., said he plans Cleveland’s eastern suburbs, likely to expand the concept statewide. will open one or two locations on UNDERWRITTEN BY: With 14 Winking Lizard Taverns the West Side before expanding ADVERTISING: Nicole Mastrangelo 216-771-5158 or [email protected] in Northeast Ohio and Columbus, outside of Cleveland. REGISTRATION: CrainsCleveland.com/BREAKFAST or contact Jessica Snyder at the Lizardville concept gives the “It makes supervising and mov- Phone: 216-771-5388 Email: [email protected] company a new way to grow in its ing product around a little harder existing footprint. when you move completely to a Mr. Callam said he doesn’t plan new city,” Mr. Shibley said. “I’m more Winking Lizard Taverns in sure that day will come.” ■ 20120604-NEWS--15-NAT-CCI-CL_-- 6/1/2012 4:34 PM Page 1

JUNE 4 - 10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15

director of public relations; Jayson GOING PLACES Shenk to graphic designer. TECHNOLOGY MOBILE AWARENESS LLC: Kevin JOB CHANGES LEGAL MEDIA M. Kuhn to vice president, sales and BABCOX MEDIA INC.: Engine Builder marketing. BENESCH: David M. Krueger to CONSTRUCTION — Doug Kaufman to associate associate. FORTNEY & WEYGANDT INC.: Joe publisher/editor; Brendan Baker to AWARDS Brooks to project manager. SQUIRE SANDERS: Michele L. senior editor/regional sales manager; Connell, Stephen M. Fazio and Brooks Bryant Thiltgen GILBANE BUILDING CO.: Dave David Benson to regional sales ACADEMY OF MEDICINE OF Stephanie E. Niehaus to partners; Paully to district chief scheduler; manager. CLEVELAND & NORTHERN OHIO: Sherri L. Dahl and L. Todd Gibson Dawn Hill to project accountant level Anthony E. Bacevice Jr., M.D., to principals. II; Dave Mooney to senior project NONPROFIT (EMH Healthcare) received the Charles L. Hudson, M.D., Distinguished manager; Wade McKenzie to senior CLEVELAND ORCHESTRA YOUTH MANUFACTURING Service Award. MEP superintendent; Dan Kronenfeld CHORUS: Lisa Wong to director; and Dan Focht to senior project CARDPAK: Seth Duckworth to vice Daniel Singer to assistant director. NAIOP NORTHERN OHIO CHAPTER: engineers. president, sales and marketing. CUYAHOGA VALLEY SCENIC RAIL- David O’Neill (Ostendorf-Morris Co.) DAVID INDUSTRIAL SALES INC.: received the Traveling Gun Broker EDUCATION ROAD: Craig B. Tallman to Krueger Duckworth Stark Joseph Ballone to regional sales president, CEO. Award; Terence P. Coyne (Grubb & CLEVELAND STATE UNIVERSITY: engineer, Northeast Ohio. Ellis) received the Industrial Broker Brent Pieper to assistant vice PRESTOLITE PERFORMANCE: REAL ESTATE Award; Mark Abood (Chartwell Group president for advancement. Craig Stark to vice president, sales; LLC) received the Investment Broker Michael Grimes to director, retail TRANSACTION REALTY: Matthew Award; Rico Pietro (Cresco Real Estate) FINANCIAL SERVICE sales; Bob Bruegging to vice Heinl to sales associate. received the Office Broker Award; president, business development. Erin Ryan (Atwell LLC) received the LPL FINANCIAL LLC: Bethany RETAIL Member of the Year Award; Ari J. Bryant to president, The Private SWAGELOK CO.: Frank J. Roddy to Maron (MRN Ltd.) received the Industry Trust Co. executive vice president, finance and WALMART: Doug Yost to regional Recognition Award; Eric Wobser (Ohio Bruegging Roddy Bacevice administration. general manager, northern Ohio. City Near West Development Corp.) HEALTH CARE received the President’s Award; Dave State of Ohio Small Business Person CLEVELAND CLINIC: Gordon MARKETING SERVICE Robar (Vocon) received the Chapter of the Year Award. M. Snow to chief of protective STUDIOTHINK: Christin Miller to INFOCISION MANAGEMENT Past President Award; William West YWCA GREATER CLEVELAND: services. account coordinator; Ryan Shull to CORP.: Yvonne Anderson to vice (Ostendorf-Morris Co.) received the Beth Cole (Weltman, Weinberg and interactive designer; Tony Giangrande president, new business development; Lifetime Achievement Award. Reis Co. LPA) received a Woman of INSURANCE to graphic designer. Mike Stokes to senior vice president, U.S. SMALL BUSINESS ADMINIS- Professional Excellence Award. MEDICAL MUTUAL: Heather WRL ADVERTISING: Sarah Cucciarre commercial operations. TRATION CLEVELAND DISTRICT: Thiltgen to vice president, direct to to graphic designer; Sabrina Milnes LAZORPOINT: Cale Harter to project Victoria Tifft (Clinical Research Send information for Going Places to consumer strategy. to web programmer; Holly Mueller to engineer, software development. Management Inc.) received the 2012 [email protected]. Metro pitching insurance program to municipalities

By TIMOTHY MAGAW fits option and is in discussions [email protected] with a handful of companies that might offer their employees the The MetroHealth System is plan, according to Phyllis Marino, piggybacking on Cuyahoga County the system’s vice president for mar- Executive Ed FitzGerald’s regional- keting and communications. ization plan in hopes that more The insurance program saw marked municipalities will sign on to the growth from 2011 to 2012, nearly county-subsidized health system’s doubling in size to 4,406 enrollees, insurance offering. according to Elise Hara, the county’s So far, five municipalities — director of human resources. Olmsted Falls, Olmsted Township, Ms. Hara said the county has been Walton Hills, Mayfield Village and in talks with mayors in various towns Glenwillow — offer their employees about embracing MetroHealth the option of the insurance plan, Select, but noted that “the ultimate MetroHealth Select. System officials selection is up to the individual hope as many as 13 other commu- employee, and it can be driven by nities will sign on this year. cost, proximity to the facilities and “We’re building momentum with doctors.” this program,” said Dr. William MetroHealth has 17 locations, Lewis, chairman of MetroHealth’s with that number expected to grow market development campaign. in the coming years. The system is Expanding enrollment in Metro- building a $23 million health center Health Select, which is administered in Middleburg Heights — the first of by Medical Mutual and in the past at least three planned health centers. only was offered to county employees, MetroHealth officials have been has been a paramount task for tight-lipped about where the others MetroHealth as it looks to muscle will be, but Dr. Lewis said he expects up its outpatient network to bring in the location of the next center will more paying patients. be unveiled in the coming year. MetroHealth also recently inked “We’re not going to delay and a deal with Cleveland State Univer- wait for completion of the Middle- sity to offer its employees the bene- burg Heights building,” he said. ■ 20120604-NEWS--16-NAT-CCI-CL_-- 6/1/2012 3:51 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 Admission: Employment down among law school graduates continued from PAGE 1 Council. WE’RE GOING DOWN “I can’t sleep well at night a result of poor management. It’s “It’s just beginning to happen, I just a catastrophic time in the legal think, so it’s really difficult to predict Cleveland-Marshall College of Law, the University of Akron School of Law and Case feeling that I’m telling field right now. Nobody’s ever seen what the extent of it will be and how Western Reserve University School of Law are seeing decreased applications. everybody who comes, anything like this. many law schools will end up doing Cleveland-Marshall and CWRU, in turn, are lowering admissions targets. 2012 ‘Yeah, you’ve got a “We either needed to prepare to that,” she said. numbers are year-to-date figures, with admissions being an expected total. chance to be a lawyer.’” admit a lot of students who were likely not going to be successful A dean with a conscience Cleveland-Marshall University of Akron – Craig Boise, dean, Cleveland- Marshall College of Law enough to get a job and pay off their Mr. Boise said higher-ranked law Year Apps Admissions Year Apps Admissions law school loans, or we had to get schools are dipping into a student smaller,” Mr. Boise said. pool they previously didn’t pursue 2012 1,132 140 2012 1,369 175 for the last couple years — without Nationwide, a number of schools, because there are fewer applicants. reducing its standards, said Lauri S. among them the University of Cali- That situation leaves lower-ranked 2011 1,609 168 2011 1,647 175 Thorpe, assistant dean of admission, fornia’s Hastings College of the Law schools such as Cleveland-Marshall 2010 1,851 195 2010 2,003 177 financial aid and student affairs. and George Washington University — ranked 135th by U.S. News & It’s all about jobs Law School, are reducing class sizes, World Report — with less of the 2009 1,930 203 2009 1,876 202 too. applicant pie. The job market for law school grad- As of May 4, the number of law If Cleveland-Marshall continued 2008 1,768 211 2008 2,085 158 uates is the worst it’s been in decades. school applicants nationwide for fall admitting 200 students, it would According to the June 2011 2007 1,481 215 2007 1,919 175 2012 was down 14.6% from fall 2011, have chanced enrolling a quarter to Employment Report and Salary Survey according to the Law School Admis- a third of the incoming class at for the Class of 2010 by NALP — The sion Council in Newtown, Pa. The “serious risk” of not being able to will get out.” tuition by 9.5% in each of the next Association for Legal Career Profes- council also found that 170 of the pass the bar, Mr. Boise said. “We are measured by outcome,” three years, though Mr. Boise noted sionals, the overall employment rate roughly 200 U.S. law schools have re- “I think it’s an ethical issue,” Mr. he said. “You’re going to devalue the it’s also increasing its scholarship for new law school graduates was 87.6% ported a drop in applications this year. Boise said. “I can’t sleep well at night product that you’re offering.” budget and is including for the of graduates for whom employment The decline in applicants comes feeling that I’m telling everybody Reducing student numbers reduces entering class bar exam preparation status was known. That’s the lowest atop a drop of 10.7% in the number who comes, ‘Yeah, you’ve got a tuition revenue, and to compensate, courses, which typically run each since 1996. of people applying to law school last chance to be a lawyer,’ when as a Cleveland-Marshall has cut $800,000 student roughly $3,000. Furthermore, only 68.4% of the fall from levels of fall 2010. matter of academic and test perfor- from its 2012-2013 budget, some of it Cuts may not be done graduates for whom employment Given those declines, it isn’t sur- mance, that’s not the case.” through attrition. It’s expected the was known obtained a job for which bar prising that law schools are cutting It also isn’t a good business model, school will cut another $750,000 Case’s Mr. Mitchell, who became passage is required. That’s the lowest back on admissions, said Wendy Mr. Boise said. He said students through attrition over the next three dean last June, said he made the percentage NALP ever has measured. Margolis, director of communica- who don’t excel “are not going to be years, Mr. Boise said. decision last December to cut the “There is likely more bad news to tions for the Law School Admission happy with the school, and word The school also plans to raise incoming 2012 class to 190. come,” said NALP executive director Mr. Mitchell said he’s motivated James Leipold. “We can expect that to cut more to improve the quality of the overall employment rate for new the incoming class than by declining law school graduates will continue to application volumes. Case’s applica- be stagnant or decline further for the I research. I fulﬁll. I learn. tions have dropped 6% this year, Class of 2011, with the curve probably according to Mr. Mitchell, though he not trending upward before the I prospect. I save. noted it’s a moving number. employment statistics become avail- “If we find that we cannot improve able for the Class of 2012.” the quality of our class at our 10% Even so, the local schools’ admission cut, we will cut further,” Mr. Mitchell cuts aren’t necessarily permanent. I source. I multitask. said. “Our goal is not to maintain; Mr. Boise said Cleveland-Marshall’s our goal is to improve.” admission plan, known as the “140 Such improvement will be measured plan,” covers the next three years, by the types of jobs Case graduates and school officials will re-examine I expand. achieve, their success on the bar exam admissions when its time is up. I branch out. and, over the long term, the type of Case Western Reserve’s Mr. Mitchell careers they lead, Mr. Mitchell said. doesn’t anticipate ever increasing I proﬁt. The payoff for Case is a potential the law school’s class size above 190, climb in U.S. News & World Report though long-term market conclu- I respond. rankings, he noted. The school cur- sions would be premature, he said. rently is ranked 67th. “We face, I think, permanent Like Cleveland-Marshall, Case structural changes in the job market,” needed to reduce its budget in line Mr. Mitchell said. I consult. with its lower admissions. To do so, One benefit to the current legal the school cut its budget substantially, market, said the Law School Admis- I lead. in part thanks to a pay freeze for the sion Council’s Ms. Margolis, is it’s 2012-2013 academic year that faculty weeding out those people who go to and staff willingly accepted, Mr. law school because “they think it’s a Mitchell said. The school also increased nice thing to do.” I track. tuition nearly 5%. Someday, the spread of these Unlike Northeast Ohio’s other two admission cuts may result in a I market. law schools, the University of Akron lawyer shortage, she said. School of Law does not plan at “It’s conceivable that the pendulum present to cut admissions because it would swing the other way eventually,” expects to meet its enrollment pro- she said. “But who knows how long jection of 175 — a number it’s held to that would take.” ■ Sign up for Cox Business I connect with Cox Business. INTERNET & PHONE BECAUSEBECAUSE EVEREVERYY for only CONNECTIONCONNECTION MATTERSMATTERS.. $89 PER MONTH/WITH 2 YEAR At Cox Business, we’re there for you with advanced and reliable communications AGREEMENT that contribute to your productivity and success. Connect today for voice, data and video. And save with our special offer, available for a limited time only.

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STEVE BENNETT ILLUSTRATIONS

By MICHELLE PARK The anxiety is more intense this INSIDE [email protected] election year because of the reces- ■ After a roller coaster ride, sion of 2008, said Kevin Myeroff, Cedar Fair LP leads the pack t’s an extreme example, but an CEO of NCA Financial Planners in ELECTION in this year’s Superstar 10. example nonetheless: Fearful Mayfield Heights, who spoke last PAGE I-2 that this November’s presi- week at a Liberty Bank program in dential election would wreak Warrensville Heights titled, “Red ■ Even though land leases Ihavoc on his portfolio, one local State, Blue State, State of Small have been signed, there still FEARS GRIP man recently demanded that his Business & Your Investments.” are ways to profit from Ohio’s investment adviser sell everything “They’re calling, they’re emailing, shale boom. in which he was invested. (Ulti- they’re very emotional and they’re PAGE I-4 mately, he reconsidered.) paying way more attention,” he ■ Market cap leaders The man is not alone in his anxi- said of clients. “Everybody’s afraid PAGE I-6 INVESTORS ety. that the wrong president doing the ■ Advisers across Northeast Ohio wrong thing can put us back into a The lower interest rates are fielding calls and emails from a recession.” have fallen, the more risk growing number of clients who are There’s much more to consider investors are willing to take. Advisers report uptick in calls from clients concerned about how the market than the election, though, local invest- PAGE I-7 — and their investments — will ment advisers stress, among them, ■ Largest public companies anxious over potential market fallout in November fare before and after the election. See ELECTION Page I-5 PAGES I-8, I-9 INVE$TINGGUIDE2012 To retain, lure top talent, companies turn to deferred rewards

Mr. Dorman said. of succession plans many compa- Plans attractive to employees limited by more traditional benefit options Nonqualified deferred compen- nies are facing because of the sation plans take various forms. retirement of baby boomers and By MICHELLE PARK For example, a company could do something from an overall Their value can be tied to some the lack of interest from next gener- [email protected] tell an employee, “We’ll give you competitive perspective,” Mr. measure of a company’s operations ations, said Karyn Sullivan, director $20,000 a year for the next five Merklin said. or to an index of equities. They of business development for Bober ith many companies’ years, but you don’t get it if you’re “We’re in an interesting envi- also can be life insurance products Markey. bought by an employer for an profits up and compe- not here in five years.” ronment right now,” he added, Back in style tition fierce for high- “That’s powerful,” said James citing how unemployment remains employee. quality people, more Merklin, director of employee high but highly skilled people are “There are additional costs for Not every company may do companiesW are eyeing nonquali- benefit plan services for Bober difficult to find. employers, but the costs pale in them, though; whether they can fied deferred compensation plans Markey Fedorovich, an accounting The promise of future compen- comparison on the (return on depends on their legal structures. as the “golden handcuffs” they need and business advisory firm in sation is one method of incenting investment) of keeping your key A relatively popular option in to attract and keep employees. Akron. “Now, I have a reason to employees to stay without giving people with your company,” Mr. the 1970s and 1980s, these plans That’s the word from local invest- stay because I’m putting a lot of them equity in one’s company, Dorman said. “If I’ve got to pay a differ from qualified plans, such as ment advisers, who say they’ve money at risk if I leave. said Mark Dorman, president of few extra thousand bucks to install 401(k)s, in that they are not subject seen a surge in interest in these “I’m seeing more interest from Dorman Farrell, a Medina financial a plan, it’s money well spent.” to the Employee Retirement Income plans. Broadly defined, the plans my corporate clients in looking at planning firm. The plans address a number of Security Act of 1974 (ERISA) and defer the payment of some future setting up deferred compensation “The competition for talent in timely issues, including the volatile do not need to be held in trust. compensation until a later date. plans because they feel the need to Northeast Ohio is fast and furious,” employment market and the lack See PLANS Page I-2 20120604-NEWS--18-NAT-CCI-CL_-- 5/31/2012 2:37 PM Page 1

I-2 CRAIN’S CLEVELAND BUSINESS INVE$TINGGUIDE2012 JUNE 4 - 10, 2012

Cedar Fair steady CRAIN’S SUPERSTAR 10 1-YR. TOTAL 1-YR. NET NET INCOME RETURN RETURN COMPOSITE RK COMPANY TOTAL RETURN INCOME % CHANGE ON ON EQUITY SCORE again after wild ride RETURN RANK CHANGE RANK EQUITY RANK 1 Cedar Fair LP 10 73.30 2 328.59 6 45.46 2

Amusement park operator weathers recession, 2 Diebold Inc. 32 20.83 15 815.07 2 17.51 15

heavy acquisition debt; now, it tops Superstar 10 3 TransDigm Group Inc. 36 51.41 8 95.16 18 27.57 10

By MARK DODOSH Timothy Magaw two months ago. 4 Myers Industries Inc. 40 58.73 5 157.21 13 11.89 22 [email protected] “Three record years in a row don’t happen very often. I remind my 5 Nacco Industries Inc. 44 10.50 20 103.90 16 28.13 8 edar Point Amusement board of that, but they certainly Park in Sandusky has its remind me that we have the great 6 Lincoln Electric Holdings Inc. 47 26.97 12 66.75 22 18.45 13 share of roller coasters parks to do it.” with interesting names. If investors need a reminder that 7 Park-Ohio Holdings Corp. 50 1.27 28 93.82 19 44.98 3 CThere’s the twisting, turning, green- Cedar Fair has staged quite the railed Raptor; the heart-in-your- comeback, they should find it in 8 First Citizens Banc Corp. 52 72.30 3 412.15 5 3.86 44 throat Top Thrill Dragster, which the company topping the list of the goes from zero to 120 mph in less Crain’s Superstar 10. 9 Avalon Holdings Corp. 57 96.55 1 242.91 9 1.94 47 than four seconds; and the park’s The latest version of Crain’s 10 Sherwin-Williams Co. 58 48.66 9 -4.46 42 29.13 7 signature ride, Millennium Force, annual look at public company which reaches 310 feet into the sky performance in Northeast Ohio SOURCE: S&P CAPITAL IQ; WWW.SPCAPITALIQ.COM before hurtling riders down from finds only one company — Park- its crest at an 80-degree angle. Ohio Holdings Corp., at No. 7 this The parent company of Cedar year — as a repeat member from determines which companies make eight, 18 and 10 gives TransDigm a INSIDE THE COMPANY Point doesn’t have a similar nick- the 2011 Superstar class, which up the Superstar 10. A composite total score of 36, which puts the name. But if it did, Cedar Fair LP was dominated by manufacturers score for each public company in company at No. 3 on the Superstar Crain’s determines its might be called, “The Comeback that rebounded in 2010 from the 15 counties Crain’s tracks was list just below Diebold and just Superstar 10 by obtaining a Kid.” their recession-plagued results of obtained by adding its rank on above Akron-based Myers Industries composite score for each The owner of Worlds of Fun 2009. three different lists — 12-month Inc., a diversified manufacturing publicly traded company in the amusement park in Kansas City, The 2012 Superstar class is an total return to shareholders, per- and distribution company. 15-county coverage area. The Mo., was in a world of hurt after it eclectic mix of companies from centage change in profits in the Investors who put money into composite score is the total of took on a ton of debt to pull off its across the region. Some of these trailing 12-month period reported these companies a year ago largely three rankings: 2006 acquisition of Paramount companies, such as Cleveland-based before April 30 versus the like were rewarded for their foresight. ■ 12-month total return to share- Parks, which included Cincinnati’s Park-Ohio, a diversified manufac- period a year earlier, and return on Half the 10 companies in this holders Kings Island, in a $1.2 billion deal turer and provider of supply man- equity during the latest 12 months year’s class saw their total returns ■ 2011 percentage growth in that wrapped up shortly before the agement services, continued to reported by the company. to shareholders in the 12-month profits credit crunch hit. Cedar Fair perform well in 2011 after staging As in golf, the lower the composite period that ended April 30 exceed ■ 2011 return on equity weathered the financial storm of recoveries in 2010. Others, such as score, the better a company’s 50%, with the No. 9 Superstar, the next few years, though, and for Cedar Fair and Diebold Inc. in overall performance is considered Avalon Holdings Corp., increasing the last two years has racked up Green, a producer of automated to be. the most. The total return of the star Lincoln Electric Holdings Inc., record aggregate attendance at its teller machines and bank security Take TransDigm Group Inc., a Warren-based provider of waste a Euclid-based producer of welding 11 amusement parks and six water equipment that is No. 2 on this Cleveland-based producer of air- management shot up 96.55%. Only equipment, and Cleveland-based parks. year’s list, have recovered from craft parts that is growing in part Park-Ohio turned in a total return paint maker Sherwin-Williams Co., “All indications now are positive rough patches and turned solid via acquisition. It ranked eighth in that was less than 10%, though the at No. 10 on the list. we should be able to do a third profits in 2011 after losing money one-year total return to shareholders, No. 5 Superstar, Nacco Industries The newbie at No. 8 is First record year,” Cedar Fair CEO Matt in 2010. 18th in percentage change in profits Inc. — a Cleveland-based producer Citizens Banc Corp., the Sandusky- Ouimet told Crain’s reporter A trio of performance indicators and 10th in return on equity. Adding of coal, fork lift trucks and small based parent of Citizens Banking appliances — barely exceeded that Co. The small community bank double-digit level. paid off big for investors over the Of the three other companies previous 12 months, with a total that are part of this year’s class of return to shareholders of 72.3% as Superstars, two have appeared in past its profits over the trailing 12 classes while one is a newcomer. months improved by more than The two veterans are No. 6 Super- 400%. ■ THE FUTURE BEGINS WITH A CAPITAL “G”. For families, family ofﬁces, endowments, and foundations, the path to ﬁnancial stability and Plans: Tax benefits factor in opportunity begins with a company founded by the Pew family in 1956 — Glenmede. As a privately-owned trust company with over $20 billion under management, we never struggle with continued from PAGE I-1 Beacon Financial Partners in competing priorities. We remain singularly focused on investment and wealth management That can be a bonus for an Beachwood. and serving your best interests. Our seasoned professionals take a long term view and gauge employer because they’re not “People are starting to ask about success based on how well we manage your wealth from one generation to the next. required to write the check right them,” Ms. Pistone said. “Most of away, Mr. Merklin noted. One my clients are really starting to feel downside though: The business they will never be in a lower tax doesn’t get a tax deduction until bracket than they are now. People the promised pay actually is paid. are very concerned about tax rates Many companies offer a qualified being higher.” benefit plan, but not all make Here’s how that relates: Employees available nonqualified deferred who have nonqualified deferred compensation plans, so businesses compensation plans enjoy the are using such offerings to differ- perk of tax deferral. If by the time entiate themselves, said Jeffrey they’re cashing in their deferred Malbasa, chief operating officer of compensation they’re in a lower Spero-Smith Investment Advisers tax bracket — which many would in Beachwood. be after they’ve retired— they could One plus to the plans, particu- pay significantly less tax than they larly for the highly compensated would if they were receiving the employees who most often have money today, Mr. Merklin said. them, is the ability to put more Also lending to the resurgence money away. Highly paid people of these plans, according to Mr. are limited in what they can pay Dorman, is the increased clarity into more traditional qualified regarding Section 409(A), legislation www.glenmede.com plans, such as 401(k)s, but there is passed in the wake of the Enron no cap on what can be deferred into scandal. It clarified the timing of Glenmede’s services are best suited for those with $3 million or more to invest. nonqualified deferred compensation deferrals and distributions, among To learn more, please call Linda Olejko for a personal conversation at 216-514-7876. plans, Mr. Merklin said. other issues. Uncertainty about tax rates is a Before the sharpened clarity, 2 2 2 2 2 major driver of the resurgence of many companies were leery to do such plans, said Karyn Pistone, a nonqualified deferred compensation certified financial planner with plans for fear of noncompliance, 20120604-NEWS--19-NAT-CCI-CL_-- 5/31/2012 2:38 PM Page 1

JUNE 4 - 10, 2012 INVE$TINGGUIDE2012 CRAIN’S CLEVELAND BUSINESS I-3 In uncertain tax climate, carefully plan income, deductions

ow that the 2011 tax filing investments in order to take advan- portfolio will likely increase, other In addition, valuation discounts season has ended, it tage of the final year of the low tax DAVEJANOSEK things being equal. have been the target of numerous becomes more and more rate on capital gains. A closer analysis ■ Converting traditional IRAs to proposals. If you are planning on important to review and suggests you consider the expected Roth IRAs: Many have discussed giving and have a substantial net Ntake control of your 2012 tax situation. rate of return on that asset. the advisability of converting a tra- worth, 2012 is the year to give. It also is time to start thinking Even if a higher tax is incurred ditional IRA to Roth IRA this year. ■ Year-end planning ideas: about 2013 taxes as well. We are in when the investment is ultimately In 2012, there is no limitation on Depending on where tax rates are an environment of uncertainty with sold, selling now to “take advantage” the level of income to be eligible headed next year, typical year-end respect to future taxes and, as a of a lower rate may ultimately cause for a Roth conversion. Be careful planning may change. result, planning flexibility will be you to miss more asset growth and and discuss this with a tax adviser. Doing the opposite of typical essential. end up with a lower after-tax result. ADVISER Your age and tax situation play a year-end tax planning may be If Congress does not enact any And do not forget to consider significant role in determining the appropriate, and you may decide new legislation, federal income tax realizing capital gains if you have gering the wash sale rules, which benefit of a Roth conversion. to accelerate income into 2012. rates will increase — in some cases capital losses that are otherwise only operate to prevent losses claimed ■ Estate and gift: The current This year will be difficult for dramatically — for individual tax- going to be subject to the $3,000- on certain sales and reacquisitions. estate and gift exemption amount planning because of the timing of payers effective Jan. 1. per-year deduction limit. ■ For investors in general: The is $5 million per person. A couple the election and the difficulty in These changes include an increase This strategy works even if you dividend income you earn will likely can pass up to $10 million free of passing any tax legislation. ■ in maximum rates on dividend and like the investment with the built-in result in less after-tax income. At estate tax. If a new tax law isn’t ordinary income from 15% and capital gain, because you can buy the same time, as tax rates increase, passed, the estate and gift exemption Mr. Janosek is a managing director 35%, respectively, both to 39.6%. In back the investment without trig- the value of your municipal bond will fall to $1 million per person. for CBiz Inc. addition, tax rates on long-term capital gains are scheduled to increase from 15% to 20% and a new 3.8% tax on unearned income begins for high-income individuals. Regardless of what action Con- gress takes, it is virtually certain that some of us will face increased tax rates starting next year. This situation presents opportunities and risks that require planning. To the extent that you have control over timing and realization of your potential income and deductions, you should consider the tax consequences and the relative benefits and costs of your decisions. Additionally, a review of the tax consequences of your investments also is advisable. Some planning ideas to keep in mind: ■ For owners of closely held C corporations: 2012 may be the best opportunity for quite some time to declare and pay dividends. If your corporation has excess funds that you would like to tap, 2012 is the year to do it. We know that the maximum tax rate for these qualified dividends will only be 15%, but we do not know what the future will hold. ■ For investors with capital gains: The obvious suggestion, as You expect an expert with dividends, is to sell profitable in Cash Management,

Mr. Dorman said. Risk Management and, Grass isn’t always greener As with anything, risks exist. of course, Relationship Chief among them is the fact that one condition of nonqualified deferred compensation plans is Management. there needs to be substantial risk of forfeiture. That risk can be an That’s Key. We have experts in every aspect of financial employee standing to lose all of the services. Starting with the relationship. We are KeyBank. promised pay if they leave a com- Our Relationship Managers help you access a team of pany before a plan requires, or the senior level specialists to assist you with any financial need. company itself going under. Nonqualified plans are not We are also KeyBanc Capital Markets Inc., a full service exempt from creditor claims, so any corporate and investment bank. So when your financial company’s unfunded promises are needs become more sophisticated, like maximizing liquidity not protected. or managing risk, we have the expertise to help you succeed. “That promise (of deferred compensation) is only as good as the business giving it to me,” Spero- We’re not just the expert you deserve. We’re what you expect. Smith’s Mr. Malbasa said. Market risk is another potential downside since some deferred ;VSLHYUTVYL]PZP[RL`JVT^OH[`V\L_WLJ[ compensation is tied to equities, said Tom S. Goodman, a partner with Cedar Brook Financial Partners in Cleveland who specializes in non- KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC and KeyBank National Association (KeyBank N.A.) are separate but afﬁliated companies. qualified deferred compensation plans. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives. Though he said he hasn’t seen the increased popularity that other Securities products and services: Not FDIC Insured • No Bank Guarantee • May Lose Value advisers say they have, Mr. Good- Banking products and services are offered by KeyBank N.A. Member FDIC and Equal Housing Lender. man expects a surge in the use of ©2012 KeyCorp. ADL4779 nonqualified deferred compensation plans toward the end of this year and in 2013, given the increase in taxes many expect. ■ 20120604-NEWS--20-NAT-CCI-CL_-- 5/31/2012 3:10 PM Page 1

I-4 CRAIN’S CLEVELAND BUSINESS INVE$TINGGUIDE2012 JUNE 4 - 10, 2012 There’s still room in shale boom handle the gas and oil once it comes Advisers see plenty of opportunities in energy out of the well. “A lot of these midstream com- By DAN SHINGLER Increasing production in the United panies are limited liability partner- [email protected] States will impact both energy ships,” Mr. Brooks notes, meaning companies as well as industries they pay their earnings to partners o, you want to keep up with that rely on oil and gas to operate, in the form of dividends. “For people the Clampetts and be a shale they say — and it will create invest- looking for income, that’s a great gas millionaire — what to ment opportunities. way to play it.” do, what to do? “It’s a vast industry and I’ve There’s also the supply chain, SIf you’ve got a time machine, the increased the allocation for my experts point out — companies thing to do is to go back a few years clients,” Ms. Diamond said. “I such as Timken Co. in Canton or and buy mineral rights in eastern strongly believe that for the long U.S. Steel’s plant in Lorain, which Ohio — rights worth $50 or so an term you have to have some signif- produce steel tubing for drillers. acre 10 years ago are worth $3,000 icant exposure to that industry.” Those companies already are feeling or more today. But there are a lot of ways to the positive effects of increased But, for those of us stuck in play it, Ms. Diamond and others demand as U.S. drilling picks up. 2012, experts say there still are say, and investors should try to But some of the best long-term ways to possibly profit from Ohio’s diversify themselves as much as investments might be farther new “gold rush,” as the rush to possible, not only by owning other downstream still — all the way at drill for shale gas and oil is being unrelated investments, but also by the end of the chain. called, as well as increased domestic investing across different parts of “We think, in part, some of the energy production generally. the energy sector itself. improvement in U.S. manufacturing Ohio’s Utica shale, which is about “How to play the Utica? If you is tied directly and indirectly to the 8,000 feet below most of the eastern think about it, you can segment into shale gas development,” Mr. half of the state and contains not various opportunities,” said G. Allen Schuler said. “It’s lowering energy just natural gas but oil and other Brooks, author of the energy indus- costs for manufacturers in general.” valuable liquids, has become one try blog “Musings from the Oil Patch,” of the hottest spots in the nation a Houston-based energy industry Diversify, diversify, diversify for drillers in the last six months. consultant and former securities If you’re really bullish on domestic State residents — even those not analyst covering the industry. energy, the best strategy is probably living near the shale itself — have First, Mr. Brooks said, are the to diversify across the industry, taken notice. producers, the companies such as from producers right downstream “We get questions of two types Chesapeake Energy Corp. that to the end users, Ms. Diamond said. on this,” said Andy Schuler, regional actually find and produce gas and “You’ve got to diversify yourself ASPIRE investment director for PNC Wealth oil. But it’s not as easy as just finding across the sectors of the energy to have a great ambition or ultimate goal; Management in Cleveland. “There the company with the most trucks universe,” she said. “I don’t think to strive towards an end; to soar are those who express an interest in the area, he warns. the average person realizes there are in, ‘How can we take advantage of “You get into the whole commodi- all these subsets of the industry.” the opportunities (directly in shale ties market and the risk that that One way to do that, she said, is by Christopher Snider, CEPA gas)?’ But we’re also getting clients brings” when you invest in pro- investing in mutual funds that put inquiring as to the broader impact: ducers, Mr. Brooks notes. That’s money across the vast spectrum of CERTIFIED EXIT PLANNING ADVISOR ‘What is the impact of lower natural because most of the assets of these the energy industry. Ms. Diamond President / Founder, Aspire Management gas prices on companies and on companies are tied up in under- said she also advises the use of such Chapter President / Founder, Northeast Ohio Exit Planning Institute the economy generally?’” ground reserves of oil and gas — if funds because it puts a full-time Board of Governor, International Exit Planning Institute Chicago For the curious and ambitious, the price of those commodities investment professional at the front Featured in COSE, “Which Way to the Exit?” Mr. Schuler and other investment rises, so does the asset value of the line in terms of picking individual professionals say it’s fine to have companies that own them. stocks and other securities. optimism because of what you see That’s one reason that Ohio’s Which is in keeping with the one Increase the value of your business, exit in Ohio or in terms of generally biggest driller, Chesapeake Energy, piece of advice that all the experts successfully and sell at a premium increasing natural gas or oil produc- has seen its stock drop from more give to their clients and friends: No tion in the United States. He and than $25 per share in March to less matter how bullish you are on a others share that positive outlook. than $16 per share recently. The particular energy play, always invest “I’m bullish on energy generally,” company relies, in part, on the value in management first. Seminars/Classes/Information said Carina Diamond, managing of its natural gas assets for both its In other words, they say, be director of SS&G Wealth Manage- cash flow and financing needs. aware that money can be lost by ment in Solon. “We have been Learn more Take it downstream investing it in a poorly managed www.aspiremanagementinc.com bullish on it for a long time. It hasn’t company, even if that company is been such a good investment the Further “downstream,” as they in the hottest new industry or last couple years, but over the long say in the energy industry, are the energy play going. term I’m sure it’s a good investment.” companies that make it possible “Poorly managed companies, like for gas and oil to get to processors, Getting into the game companies that operate in struggling refineries and their end markets. markets, are generally not a recipe Demand for energy is only going These are companies that build for good, long-term investments,” to go up, say folks like Ms. Diamond. pipelines and other equipment to Mr. Schuler said. ■

Stifel Nicolaus: Among the COMING UP: TOP 2-YEAR RETURNS CFO OF THE 2-YEAR RETURN fastest-growing in the industry. RK COMPANY YEAR AWARDS AS OF 4/30/12 Financial strength and stability. Client interests first. Crain’s Cleveland Business cur- 1 Chart Industries Inc. 232.4% A growing network of talented advisors. rently is taking nominations for its annual CFO of the Year section, 2 Cedar Fair LP 132.6 which this year will publish in the newspaper on Oct. 15. 3 TransDigm Group Inc. 128.2 All of these things have helped Stifel Financial Corp. grow to become the Each year Crain’s honors top 7th-largest investment firm in the country in terms of number of financial professionals in the for- 4 Preformed Line Products Co. 98.8 financial advisors, with approximately 2,000 Financial Advisors. profit and nonprofit sectors. To nominate someone you feel is 5 Avalon Holdings Corp. 82.1 In addition, Stifel’s Equity Research Group received the #2 Ranking worthy for consideration, visit this in the tenth annual FT/StarMine World’s Top Analysts Survey and was also website: http://crainscleveland.com/ 6 Lincoln Electric Holdings Inc. 69.5 cited by the Financial Times as the “best house for stock picking,” with section/CFOevent_nominations. The nominating process ends in nine stock-picking awards and five analysts ranked #1 in 2011. 7 Park-Ohio Holdings Corp. 67.8 August. See www.stifel.com for full details. Additionally, find profiles of past 8 Timken Co. 66.2 honorees and photos and videos (216) 593-7400 | (800) 225-8520 from past events at http://crains 9 Myers Industries Inc. 60.6 30100 Chagrin Blvd., Suite 101 | Pepper Pike, Ohio 44124 cleveland.com/section/CFOevent _Event. This year’s awards reception is 10 Sherwin-Williams Co. 59.7 member sipc and nyse | www.stifel.com set for the week of Oct. 22. SOURCE: S&P CAPITAL IQ; WWW.SPCAPITALIQ.COM 20120604-NEWS--21-NAT-CCI-CL_-- 5/31/2012 1:54 PM Page 1

JUNE 4 - 10, 2012 INVE$TINGGUIDE2012 CRAIN’S CLEVELAND BUSINESS I-5 Election: If equity markets falter, buying opportunities could arise

continued from PAGE I-1 will be remedied, but I don’t have one else is buying, he said. he’s by and large staying the then the economy isn’t growing the tax cuts and unemployment a lot of confidence that they’ll be Mr. Charnas, the former chief course. jobs and you have that overhang benefits set to expire and the remedied in an orderly way,” said financial officer of the Pick ‘n Pay “I think the reality is the day-to- over the market.” continuing turmoil in Europe. Mr. Buoncore, who cited the grocery chain, also is not like the day news items in the paper that If Mr. Romney is elected, Mr. “At least in my experience, this is delays that occurred before the debt people he sees getting emotional my clients are getting very worried Charnas predicts a neutral to probably one of the most compli- ceiling crisis was resolved and the about the election. about every day, I don’t think have slightly positive effect on the cated election periods I’ve ever subsequent first-time downgrading “I do have certain concerns a great relevance on the market,” market. seen,” said Rick Buoncore, who’s of the U.S. credit rating. about the election, but the election’s he said. As for Mr. Myeroff of NCA worked as an investment adviser in November,” said Mr. Charnas, Mr. Charnas, too, hasn’t Financial Planners, his prediction for 25 years. “The market does not Opportunity calls who now buys and operates busi- changed the way he’s investing, is that neither of the presidential like uncertainty, and in this year, If the election year proves to nesses for a living and has an MBA but does have his thoughts about candidates would send the economy we have much more uncertainty be a negative year for the equity in finance. “I think it’s so up in the what may happen if President into a tailspin. than we’ve ever had before.” markets, that actually might air now as to who’s going to win.” Obama is re-elected or if Mitt “The current economy’s strong Mr. Buoncore, managing partner present a buying opportunity Mr. Charnas is advised by Steve Romney wins. If President Obama enough, and the outlook for the of MAI Wealth Advisors in Cleveland, for investors, though individual Rudolph, managing director of stays, Mr. Charnas anticipates future economy is strong enough is among many who regard the investors tend to assume the HW Financial Advisors in Beach- more regulation and more taxes. that I don’t think it makes a differ- impending expiration of the Bush- opposite, Mr. Siewert noted. wood, but also buys and sells on “I think all of those things will ence which guy gets the office,” he era tax cuts and unemployment Michael Charnas is not that his own for what he dubs his “ego spook American businesses to asserted. “They won’t be able to benefits as a financial cliff. Both kind of investor. He will “bottom account.” invest even less in growth,” he stop the economy from moving expire early next year if Congress fish” and buy equities when no His adviser, Mr. Rudolph, said said. “If you invest less in growth, forward.” ■ does not act. “We’re really pretty certain, no matter who wins the election, that in the first part of 2013, there’s going to be a challenging environment,” Mr. Buoncore said. Risky business Investment advisers say it’s important for investors not to make skittish, all-or-nothing bets. That’s not to say advisers don’t see reason to dial back risk, because they are. Most, though, say they’re doing it with much more than the election in mind. “Our actions are purely based on data that the economy is delivering, not on the rhetoric going back and forth in this election cycle,” Mr. Myeroff said. “We look at jobs growth, we look at corporate earnings, we look at money supply. All of those things are pointing relatively positive.” Historically, the first year of a presidential cycle tends to be the worst for the market because that’s the year a president tends to do unpopular things, advisers said. The third and fourth years tend to be most positive, which should mean the odds are in investors’ favor for above-average growth in 2012, noted Mike McGervey, president and founder of North Canton-based McGervey Wealth Management. However, Mr. McGervey cautioned, “I would not bet the farm on the historical presidential cycle outcome.” Like other advisers, he cited the many headwinds that exist today, among them the moderate economic growth and the uncertainty about U.S. taxes, regulation and health care that has paralyzed many businesses. So what do investment advisers favor currently? Mr. McGervey and others see opportunity in higher- dividend stocks and high-quality short- and intermediate-term bonds. Robert Siewert, managing director in the Beachwood office for Glen- mede, a Philadelphia-based wealth management firm, said his office has made changes in recent weeks, including reducing allocations to equities in client portfolios, more of them international than domestic. MAI Wealth Advisors is hedging its portfolios and reducing risk in a number of ways, too, Mr. Buoncore said. That involves buying put spreads, which he said protect investors for a certain percentage of downside moves in the market, and implementing buffers that limit what one can lose but also cap what one can gain. “I think, long term, that a lot of the problems and issues we have not only here and internationally 20120604-NEWS--22-NAT-CCI-CL_-- 6/1/2012 1:34 PM Page 1

I-6 CRAIN’S CLEVELAND BUSINESS INVE$TINGGUIDE2012 JUNE 4 - 10, 2012

FirstEnergy bigger after Pa. deal TOP MARKET VALUATIONS (IN BILLIONS) VALUATION VALUATION PERCENT RK COMPANY 15 cents a share, in the first quarter 4/30/12 4/30/11 CHANGE Area’s other top market caps fall in last 12 months of 2011. Revenue at FirstEnergy rose 14%, to $4.1 billion in the first 1 FirstEnergy Corp. $19.58 $12.18 60.7% By SCOTT SUTTELL surge — to a market cap of $19.58 quarter from $3.6 billion in the like [email protected] billion from $12.18 billion on April period a year ago. 2 Eaton Corp. 16.21 18.27 -11.3 30, 2011 — enabled FirstEnergy to The four companies that ranked alk about a power play. leap from No. 5 on the list to the higher than FirstEnergy on the 2011 3 Parker Hannifin Corp. 13.23 15.27 -13.3 FirstEnergy Corp., the top spot this year. list — in order, they were Eaton Akron-based electric utility Its deal with Allegheny made Corp., a producer of power manage- 4 Progressive Corp. 13.02 14.39 -9.5 that in February 2011 com- FirstEnergy one of the nation’s ment and electrical systems; Parker Tpleted a big merger with Allegheny largest utilities. It now has 10 oper- Hannifin Corp., which makes 5 Sherwin-Williams Co. 12.42 8.76 41.8 Energy Inc., zoomed to the top of ating utilities in seven states and motion and control technologies; Crain’s Cleveland Business’ list of serves more than 6 million customers. auto insurer Progressive Corp.; and 6 J.M. Smucker Co. 9.02 8.71 3.6 Largest Public Companies with a FirstEnergy on May 1 reported Cliffs Natural Resources Inc., a 60.7% increase in market capital- that its first-quarter net income producer of iron ore and metallur- 7 Cliffs Natural Resources Inc. 8.87 12.71 -30.2 ization over the one-year period climbed to $306 million, or 73 gical coal — all saw their market that ended April 30, 2012. That cents a share, from $52 million, or caps decline in the past year. 8 KeyCorp 7.69 8.27 -7.1 The steepest fall in market cap among that group came at Cliffs, which tumbled 30% to $8.87 billion 9 TransDigm Group Inc. 6.38 4.13 54.4 from $12.71 billion. Cliffs’ decline in market cap dropped it out of the 10 Timken Co. 5.52 5.52 0.1 How Will Pension Law Changes top five to the No. 7 spot on this 11 DDR Corp. 4.11 3.77 9.0 year’s list. (But go figure — Cliffs’ Impact Your Retirement Plan? net income rose 58.8% to $1.62 billion in 2011 from $1.02 billion in 12 Lincoln Electric Holdings Inc. 4.10 3.31 24.0 2010.) A similar pattern was in place at 13 RPM International Inc. 3.49 3.07 14.0 /HDUQDERXWQHZUHJXODWLRQV Eaton, where net income rose LQRXUIUHHVSHFLDOUHSRUW 45.3%, and at Parker, where net 14 Nordson Corp. 3.49 3.89 -10.3 income was up 30%. &RPSDUH\RXUSODQ·VH[SHQVHV The drop at the top was illustra- 15 TFS Financial Corp. 3.04 3.36 -9.5 DQGSHUIRUPDQFHZLWKRXU tive of a 12-month period in which the number of Northeast Ohio 16 Forest City Enterprises Inc. 2.70 3.18 -15.1 IUHHEHQFKPDUNLQJ companies that lost market value DQDO\VLV exceeded the gainers. Among the 60 17 Goodyear Tire & Rubber Co. 2.69 4.43 -39.3 public companies on this year’s list, 27 posted gains in market cap from 18 Diebold Inc. 2.47 2.22 11.0 the 2011 list but 31 posted declines. Two companies — Farmers National 19 Chart Industries Inc. 2.29 1.40 63.1 Banc Corp. of Canfield and OurPet’s Co. of Fairport Harbor — were not 20 FirstMerit Corp. 1.83 1.90 -3.4 measured because they were not on the 2011 list. 21 Steris Corp. 1.81 2.14 -15.3 We want you to succeed. Cliffs’ drop brought a new — but quite old — face to the top five: the 22 Cedar Fair LP 1.72 1.05 63.8 146-year-old Sherwin-Williams Co. sperosmith.com (216) 424-6266 The Cleveland-based maker of 23 GrafTech International Ltd. 1.69 3.37 -49.8 paint, coatings and related products moved to the No. 5 spot on this 24 Applied Industrial Technologies 1.65 1.50 10.3 year’s list from No. 6 in 2011 on the strength of a market cap increase 25 PolyOne Corp. 1.23 1.36 -9.5 of 41.8%, to $12.42 billion. Slow improvement in the housing SOURCE: S&P CAPITAL IQ; WWW.SPCAPITALIQ.COM market is helping the company. Sherwin-Williams said its net On a percentage basis, the moved Avalon up on the list by income in the first quarter climbed biggest gainer on this year’s list was three spots, to the 53rd-largest nearly 47%, to $100.2 million, or 95 Avalon Holdings Corp. of Warren, a public company in Northeast Ohio cents per diluted share, from $68.3 provider of hazardous and nonhaz- from 56th last year. million, or 63 cents a share, in the ardous waste brokerage and manage- The biggest jump in terms of first quarter of 2011. Sales at ment services. Its market value rose position on the list came from Sherwin-Williams rose 15%, to 96.5% since last year, to $21.7 mil- Myers Industries Inc. of Akron, a $2.14 billion from $1.86 billion. lion from $11 million. That increase diversified manufacturing and distribution company. Myers’ market value rose 46.6%, to $552.4 million from $376.8 million a year ago. That increase made Myers the 31st- How is your largest company on the list, up eight spots from last year. There were six companies that Growth Equity Manager posted market valuation gains of at least 50%. In addition to FirstEnergy performing? and Avalon Holdings, they were First Citizens Banc Corp. of Sandusky (up 69.1% to a market cap of $53.2 million); Cedar Fair LP of Sandusky Broadleaf Partners is proud to be recognized (up 63.8% to a market cap of $1.72 billion); Chart Industries Inc. of as a Lipper Top 40 Money Manager Garfield Heights (up 63.1% to a market cap of $2.29 billion); and TransDigm Group Inc. of Cleveland over the past three years. Give us a call. (up 54.4% to a market cap of $6.38 billion). Ferro Corp. of Cleveland, a maker of specialty performance materials, has the ignominious distinction of posting the largest decline in market cap on this year’s list. Its market value fell 65.4%, to $449.3 million from $1.298 billion a year ago. As a result, it dropped nine spots to No. www.broadleafpartners.com - (330) 650-0921 35. Even so, Ferro saw its profits rise Hudson, OH enormously, to $31.6 million in 2011 from $5.7 million in 2010. ■ 20120604-NEWS--23-NAT-CCI-CL_-- 6/1/2012 3:16 PM Page 1

JUNE 4 - 10, 2012 INVE$TINGGUIDE2012 CRAIN’S CLEVELAND BUSINESS I-7

For better returns, risk is the in thing TOP 5-YEAR RETURNS 5-YEAR RETURN RK COMPANY can’t erode. it’s a benefit. AS OF 4/30/12 Lower interest rates “If interest rates do begin to Paradigm is working with clients move up, they’ll find their principal on international fixed income, sover- 1 Athersys Inc. 316.17% in more traditional may deteriorate and they may have eign debt, REITs, preferred stocks trouble recovering that,” Mr. and commodities, and private equity. 2 Chart Industries Inc. 305.46 areas necessitate shift Hoover said. “That risk is very real.” “There’s no one silver bullet that’s going to solve everything,” 3 TransDigm Group Inc. 298.06 By GINGER CHRIST No silver bullet Mr. Kuhlman said. [email protected] Tom Haught, president and CEO 4 Nordson Corp. 151.59 of Akron-based Sequoia Financial Alternative evolution isk is the name of the game Group LLC, said his clients — typi- While each investment strategy 5 PolyOne Corp. 114.70 in today’s investment market. cally financially independent and offers higher returns, each also With interest rates set to college-educated individuals — carries its own risk. 6 Sifco Industries Inc. 113.02 remain near zero until usually look for 4% to 6% distribution For example, investments in R2014, Northeast Ohio investors and rates. private equity — one area in which 7 Sherwin-Williams Co. 109.87 financial advisers are turning to “The trend is making people look there is a lot of interest — are not as traditionally riskier strategies to into alternative markets to find that liquid as other investment options. 8 Timken Co. 90.97 generate investment income. kind of yield, Mr. Haught said. For that reason, Paradigm also Where once certificates of deposit To generate that income, Mr. recommends that alternative invest- 9 Cliffs Natural Resources Inc. 89.90 and treasury bonds could generate Haught is advising clients to invest ments make up 15% to 20% of an the kind of returns on which investors in REITs, companies that own investor’s portfolio, of which only depend, they now are being supple- income-producing real estate; utility 10% to 15% is reserved for the riskier 10 J.M. Smucker Co. 78.25 mented by real estate investment stocks, stocks of water, gas and investments. 11 Lincoln Electric Holdings Inc. 69.02 trusts, master limited partnerships electric companies; and master Indeed, Mr. Haught expects alter- and dividend-yielding stocks, limited partnerships, publicly native investments to become more 12 Applied Industrial Technologies Inc. 64.91 among other investments. traded limited partnerships that mainstream the longer interest Douglas Kuhlman, managing generate income typically from real rates remain low. And he doesn’t SOURCE: S&P CAPITAL IQ; WWW.SPCAPITALIQ.COM partner of Westlake-based Paradigm estate, commodities and natural expect rates to rapidly rise in the Wealth Management, said the resources. next 12 to 24 months. In fact, he said Federal Reserve’s low short-term Low interest rates make both interest rates have been declining interest rate policies have forced REITs and utility stocks attractive, for most of the past 50 years. here — at least for the short-term. we’re not going to put all of our eggs clients to take on additional risk. he said, because there’s an expanded He characterized the change in “We have to expect to deal with in one basket. We want to keep To keep up with the dollar and margin of benefit: Investors can investment strategy as an evolution. this environment for the foresee- some flexibility in case things do inflation, investors have to look be- purchase debt at a low rate and Mr. Keller agrees changes are able future,” Mr. Keller said. “But change earlier than expected.” ■ yond traditional investments, he said. then generate income from the “They have to really start to property or stock to pay said debt. expand their portfolio, which can The downside is those markets be a little bit uncomfortable for aren’t nearly as big as traditional some, especially the savers,” Mr. markets, he said. Kuhlman said. “Smaller markets tend to be Yet despite investors’ comfort more volatile,” Mr. Haught said. levels, financial advisers are steering “They tend to be more influenced them toward higher-yield investments, by global macroeconomics.” even if only to protect the principal. He generally recommends in- PARTNERS William Hoover, president of vestors dedicate 5% to 10% of their James W. Wert Hudson-based Broadleaf Partners portfolio to alternative investments. CM A. Chace Anderson LLC, said people can’t continue to Bill Keller, portfolio manager of buy into long-term treasury bonds Paradigm, said any time an investor John Paul Batt with the belief that their principal can add diversification to a portfolio, Deborah C. Jira John A. Koch, Jr. www.CMWealthAdvisors.com Cynthia G. Koury 216.831.9667 Douglas J. Smorag

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I-8 CRAIN’S CLEVELAND BUSINESS INVE$TINGGUIDE2012 JUNE 4 - 10, 2012 LARGEST PUBLIC COMPANIES RANKED BY MARKET VALUE

Market value Net income Company/Ticker symbol (millions) (millions) This Last Headquarters Percent Percent 2011 return Top local executive year year Phone/Website 4-30-2012 4-30-2011 change 2011 2010 change on equity Lines of business Title FirstEnergy Corp./FE 1576 S. Main St., Akron 44308 $19,580.9 $12,181.2 60.7% $885.0 $742.0 19.3 6.7 Electric utility holding Anthony J. Alexander (800) 736-3402/www.firstenergycorp.com company president, CEO Eaton Corp./ETN Electrical, hydraulic, 211111 Superior Ave., Cleveland 44114 $16,212.6 $18,274.7 -11.3% $1,350.0 $929.0 45.3 18.1 aerospace, truck and Alexander M. Cutler (216) 523-5000/www.eaton.com automotive products chairman, CEO Parker Hannifin Corp./PH Fluid power systems, 326035 Parkland Blvd., Cleveland 44124 $13,232.7 $15,268.7 -13.3% $1,109.6 $853.4 30.0 21.5 electromechanical Donald E. Washkewicz (216) 896-3000/www.parker.com controls chairman, CEO, president Progressive Corp./PGR 436300 Wilson Mills Road, Mayfield Village 44143 $13,018.6 $14,386.1 -9.5% $1,015.5 $1,068.3 -4.9 17.5 Insurance and financial Glenn M. Renwick (440) 461-5000/www.progressive.com company president, CEO Sherwin-Williams Co./SHW 56101 W. Prospect Ave., Cleveland 44115 $12,422.2 $8,760.9 41.8% $441.9 $462.5 -4.5 29.1 Coatings and related Christopher M. Connor (216) 566-2000/www.sherwin-williams.com products chairman, CEO J.M. Smucker Co./SJM 67One Strawberry Lane, Orrville 44667 $9,018.6 $8,706.3 3.6% $450.5 $505.2 -10.8 8.4 Manufacturer of branded Richard K. Smucker (330) 682-3000/www.smuckers.com food products CEO Cliffs Natural Resources Inc./CLF 74200 Public Square, Suite 3300, Cleveland 44114 $8,871.2 $12,712.7 -30.2% $1,619.1 $1,019.9 58.8 28.0 Full-service iron ore Joseph A. Carrabba (216) 694-5700/www.cliffsnaturalresources.com company chairman, president, CEO KeyCorp/KEY 89127 Public Square, Cleveland 44114 $7,687.1 $8,270.5 -7.1% $920.0 $554.0 66.1 9.3 Bank holding company Beth E. Mooney (216) 689-6300/www.key.com chairman, president, CEO TransDigm Group Inc./TDG Designer and producer of 9121301 E. Ninth St., Suite 3000, Cleveland 44114 $6,382.4 $4,134.3 54.4% $244.6 $125.3 95.2 27.6 highly engineered aircraft W. Nicholas Howley (216) 706-2939/www.transdigm.com components chairman, CEO Timken Co./TKR Friction management and 10 10 1835 Dueber Ave., S.W., Canton 44706 $5,519.2 $5,515.1 0.1% $454.3 $274.8 65.3 22.4 power transmission James W. Griffith (330) 438-3000/www.timken.com products and services president, CEO DDR Corp./DDR 11 14 3300 Enterprise Parkway, Beachwood 44122 $4,107.0 $3,766.9 9.0% ($15.9) ($209.4) NM NM Real estate investment Daniel B. Hurwitz (216) 755-5500/www.ddr.com trust president, CEO Lincoln Electric Holdings Inc./LECO Designs and 12 17 22801 St. Clair Ave., Cleveland 44117 $4,104.9 $3,309.9 24.0% $217.2 $130.2 66.8 18.5 manufactures welding John M. Stropki (216) 481-8100/www.lincolnelectric.com products chairman, president, CEO RPM International Inc./RPM Specialty coatings for 13 19 2628 Pearl Road, Medina 44258 $3,493.6 $3,065.1 14.0% $203.5 $179.4 13.5 16.1 industrial and consumer Frank C. Sullivan (330) 273-5090/www.rpminc.com markets chairman, CEO Nordson Corp./NDSN 14 13 28601 Clemens Road, Westlake 44145 $3,487.4 $3,886.5 -10.3% $214.8 $187.2 14.7 38.9 Adhesives, coating and Michael F. Hilton (440) 892-1580/www.nordson.com sealant applicators president, CEO TFS Financial Corp./TFSL 15 16 7007 Broadway Ave., Cleveland 44105 $3,036.6 $3,355.3 -9.5% $25.1 ($4.9) NM 1.4 Bank holding company Marc A. Stefanski (216) 441-6000/www.thirdfederal.com president, CEO Forest City Enterprises Inc./FCE-A Charles A. Ratner, chairman 16 18 50 Public Square, Suite 1100, Cleveland 44113 $2,698.1 $3,178.3 -15.1% ($86.5) $58.0 NM NM Owner and developer of David J. LaRue, (216) 621-6060/www.forestcity.net real estate president, CEO Goodyear Tire & Rubber Co./GT 17 11 1144 E. Market St., Akron 44316 $2,690.1 $4,428.6 -39.3% $343.0 ($216.0) NM 45.8 Tire manufacturer Richard J. Kramer (330) 796-2121/www.goodyear.com chairman, president, CEO Diebold Inc./DBD Integrated self-service 18 20 5995 Mayfair Road, North Canton 44720 $2,466.2 $2,221.2 11.0% $144.8 ($20.3) NM 17.5 delivery systems and Thomas W. Swidarski (330) 490-4000/www.diebold.com services president, CEO Chart Industries Inc./GTLS One Infinity Corporate Centre Dr., Suite 300, Garfield Maker of cryogenic Samuel F. Thomas 19 24 Heights 44125 $2,285.2 $1,401.2 63.1% $44.1 $20.2 118.6 7.2 processes and equipment chairman, president, CEO (440) 753-1490/www.chartindustries.com FirstMerit Corp./FMER 20 22 III Cascade Plaza, Akron 44308 $1,834.3 $1,899.6 -3.4% $119.6 $102.9 16.2 7.6 Bank holding company Paul G. Greig (330) 996-6300/www.firstmerit.com chairman, president, CEO Steris Corp./STE Maker of sterile 21 21 5960 Heisley Road, Mentor 44060 $1,810.4 $2,138.5 -15.3% $130.9 $42.1 211.0 16.8 processing and infection Walter M. Rosebrough Jr. (440) 354-2600/www.steris.com prevention systems president, CEO Cedar Fair LP/FUN Amusement and water 22 29 One Cedar Point Drive, Sandusky 44870-5259 $1,721.8 $1,051.3 63.8% $72.2 ($31.6) NM 45.5 parks in the United States Matthew A. Ouimet (419) 627-2233/www.cedarfair.com and Canada president, CEO GrafTech International Ltd./GTI 23 15 12900 Snow Road, Parma 44130 $1,689.1 $3,367.2 -49.8% $153.2 $174.7 -12.3 11.4 Manufacturer of graphite Craig S. Shular (216) 676-2000/www.graftech.com electrodes and cathodes chairman, president, CEO Applied Industrial Technologies Inc./AIT Distributor and provider 24 23 1 Applied Plaza , Cleveland 44115 $1,650.3 $1,496.9 10.3% $102.1 $86.2 18.5 15.8 of industrial parts and Neil A. Schrimsher (216) 426-4000/www.applied.com service CEO PolyOne Corp./POL Provider of specialized 25 25 33587 Walker Road, Avon Lake 44012 $1,230.8 $1,359.7 -9.5% $172.6 $162.6 6.2 29.3 polymer materials, Stephen D. Newlin (440) 930-1000/www.polyone.com services and solutions chairman, president, CEO Nacco Industries Inc./NC 26 31 5875 Landerbrook Drive, Suite 300, Cleveland 44124 $950.2 $876.9 8.4% $162.1 $79.5 103.9 28.1 Coal mining, lift trucks, Alfred M. Rankin Jr. (440) 449-9600/www.nacco.com small electrical appliances chairman, president, CEO OM Group Inc./OMG Producer/marketer of 27 27 127 Public Square, Suite 1500, Cleveland 44114 $768.6 $1,106.2 -30.5% $37.9 $83.4 -54.5 3.1 metal-based specialty Joseph M. Scaminace (216) 781-0083/www.omgi.com chemicals chairman, CEO A. Schulman Inc./SHLM 28 33 3550 W. Market St., Akron 44333 $726.4 $783.9 -7.3% $47.3 $50.0 -5.5 9.1 High-performance plastic Joseph M. Gingo (330) 666-3751/www.aschulman.com compounds and resins chairman, president, CEO Associated Estates Realty Corp./AEC 29 34 1 AEC Parkway, Richmond Heights 44143 $716.7 $688.6 4.1% $5.3 ($8.6) NM 1.7 Real estate investment Jeffrey I. Friedman (216) 261-5000/www.associatedestates.com trust chairman, president, CEO American Greetings Corp./AM 30 30 One American Road, Cleveland 44144 $589.7 $994.0 -40.7% $57.2 $87.0 -34.3 7.9 Greeting cards; character Zev Weiss (216) 252-7300/www.americangreetings.com licensing CEO Myers Industries Inc./MYE Polymer and metal 31 39 1293 S. Main St., Akron 44301 $552.4 $376.8 46.6% $24.5 ($42.8) NM 11.9 products; equipment for John C. Orr (330) 253-5592/www.myersindustries.com tire service president, CEO 20120604-NEWS--25-NAT-CCI-CL_-- 6/1/2012 11:01 AM Page 1

JUNE 4 - 10, 2012 INVE$TINGGUIDE2012 CRAIN’S CLEVELAND BUSINESS I-9

Market value Net income Company/Ticker symbol (millions) (millions) This Last Headquarters Percent Percent 2011 return Top local executive year year Phone/Website 4-30-2012 4-30-2011 change 2011 2010 change on equity Lines of business Title Invacare Corp./IVC 32 28 One Invacare Way, Elyria 44035 $504.4 $1,063.5 -52.6% ($4.1) $25.3 NM NM Home health care Gerald B. Blouch (440) 329-6000/www.invacare.com equipment president, CEO Materion Corp./MTRN 33 32 6070 Parkland Blvd., Mayfield Heights 44124 $501.8 $848.6 -40.9% $40.0 $46.4 -13.9 9.9 High-performance Richard J. Hipple (216) 486-4200/www.materion.com engineered materials chairman, president, CEO National Interstate Corp./NATL 34 35 3250 Interstate Drive, Richfield 44286 $465.6 $435.3 6.9% $35.6 $39.5 -9.8 10.2 Specialty property and David W. Michelson (330) 659-8900/www.nationalinterstate.com casualty insurance president, CEO Ferro Corp./FOE 35 26 6060 Parkland Boulevard, Mayfield Heights 44124 $449.3 $1,298.3 -65.4% $31.6 $5.7 455.4 5.5 Manufacturer of specialty James F. Kirsch (216) 875-5600/www.ferro.com performance materials chairman, president, CEO Omnova Solutions Inc./OMN 36 37 175 Ghent Road, Fairlawn 44333 $362.2 $385.1 -5.9% $9.7 $101.1 -90.4 7.0 Decorative and functional Kevin M. McMullen (330) 869-4200/www.omnova.com interior surfaces chairman, president, CEO Preformed Line Products Co./PLPC 37 38 660 Beta Drive, Mayfield Village 44143 $307.9 $378.7 -18.7% $31.0 $23.1 34.1 14.6 Wire and cable products Robert G. Ruhlman (440) 461-5200/www.preformed.com chairman, president, CEO CBiz Inc./CBZ 38 40 6050 Oak Tree Blvd. S., Suite 500, Cleveland 44131 $304.2 $368.7 -17.5% $28.0 $24.5 14.3 10.8 Provides outsourced Steven L. Gerard (216) 447-9000/www.cbiz.com business services chairman, CEO Park-Ohio Holdings Corp./PKOH 39 42 6065 Parkland Blvd., Cleveland 44124 $262.1 $252.4 3.9% $29.4 $15.2 93.8 45.0 Diversified manufacturer Edward F. Crawford (440) 947-2000/www.pkoh.com chairman, CEO Stoneridge Inc./SRI Highly engineered 40 36 9400 E. Market St., Warren 44484 $241.5 $388.5 -37.8% $49.4 $11.5 328.1 37.7 electrical and electronic John C. Corey (330) 856-2443/www.stoneridge.com components president, CEO Olympic Steel Inc./ZEUS 41 41 5096 Richmond Road, Bedford Heights 44146 $230.4 $319.6 -27.9% $25.0 $2.1 1,071.2 8.7 Steel service center Michael D. Siegal (216) 292-3800/www.olysteel.com chairman, CEO TravelCenters of America LLC/TA Interstate travel plazas; Thomas M. O'Brien 42 44 24601 Center Ridge Road, Suite 200, Westlake 44145 $181.3 $141.6 28.0% $23.6 ($66.7) NM 7.4 fuel, food, convenience managing director, president, (440) 808-9100/www.tatravelcenters.com stores and truck repairs CEO Shiloh Industries Inc./SHLO 43 43 880 Steel Drive, Valley City 44280 $154.1 $190.7 -19.2% $8.9 $4.9 81.9 8.1 Steel processing Theodore K. Zampetis (330) 558-2600/www.shiloh.com president, CEO Farmers National Banc Corp./FMNB 44 20 S. Broad St., Canfield 44406 $115.9 NM NM $9.2 $9.0 2.5 8.0 Bank holding company John S. Gulas (330) 533-3341/www.fnbcanfield.com president, CEO Sifco Industries Inc./SIF Production, repair, 45 46 970 E. 64th St., Cleveland 44103 $105.6 $86.5 22.0% $7.4 $4.6 63.1 13.5 plating, machining and Michael S. Lipscomb (216) 881-8600/www.sifco.com marketing of jet engines president, CEO PVF Capital Corp./PVFC 46 48 30000 Aurora Road, Solon 44139 $57.7 $52.9 9.1% ($7.9) ($5.8) NM NM Bank holding company Robert J. King Jr. (440) 914-3900/www.parkviewfederal.com president, CEO First Citizens Banc Corp./FCZA 47 52 100 E. Water St., Sandusky 44870 $53.2 $31.4 69.1% $4.0 ($1.3) NM 3.9 Bank holding company James O. Miller (419) 625-4121/www.fcza.com president, CEO United Community Financial Corp./UCFC 48 50 275 Federal Plaza West, Youngstown 44503 $52.5 $43.6 20.3% $0.2 ($37.3) NM 0.1 Bank holding company Patrick W. Bevack (330) 742-0500/www.ucfconline.com president, CEO LNB Bancorp Inc./LNBB 49 49 457 Broadway Ave., Lorain 44052 $51.8 $45.7 13.3% $5.0 $5.4 -6.8 4.4 Bank holding company Daniel E. Klimas (440) 244-6000/www.4lnb.com president, CEO Middlefield Banc Corp./MBCN.PK 50 53 15985 E. High St., Middlefield 44062 $39.4 $27.8 41.6% $4.1 $2.5 64.1 8.7 Bank holding company Thomas G. Caldwell (440) 632-1666/www.middlefieldbank.com president, CEO Athersys Inc./ATHX 51 47 3201 Carnegie Ave., Cleveland 44115 $34.0 $53.2 -36.0% ($13.7) ($11.4) NM NM Biopharmaceutical Gil Van Bokkelen (216) 431-9900/www.athersys.com company chairman, CEO Wayne Savings Bancshares Inc. /WAYN 52 54 151 N. Market St., Wooster 44691 $26.3 $25.6 2.6% $1.7 $2.2 -21.4 4.4 Bank holding company Phillip E. Becker (330) 264-5767/www.waynesavings.com president, CEO

Avalon Holdings Corp. AWX Hazardous and / nonhazardous waste Ronald E. Klingle 53 56 One American Way, Warren 44484 $21.7 $11.0 96.5% $0.8 ($0.5) NM 1.9 brokerage and chairman, CEO (330) 856-8800/www.avalonholdings.com management services Ohio Legacy Corp./OLCB 54 51 600 S. Main St., North Canton 44720 $21.3 $31.6 -32.6% $1.8 ($3.1) NM 9.8 Bank holding company Rick L. Hull (330) 263-1955/www.ohiolegacycorp.com president, CEO Energy Focus Inc./EFOI 55 55 32000 Aurora Road, Solon 44139 $9.2 $18.7 -50.7% ($6.1) ($8.5) NM NM Fiber optic lighting Joseph G. Kaveski (440) 715-1300 /www.energyfocusinc.com systems CEO OurPet's Co./OPCO.OB 56 1300 East St., Fairport Harbor 44077 $6.3 NM NM $0.1 $1.0 -87.7 2.4 Products for the retail pet Steven Tsengas (440) 354-6500/www.our-pets.com business chairman, CEO Datatrak International Inc./DATA 57 57 6150 Parkland Blvd., Suite 100, Mayfield Heights 44124 $4.6 $9.6 -52.0% ($1.0) $0.1 NM NM Provider of clinical Laurence P. Birch (440) 443-0082/www.datatrak.net research services chairman, CEO Morgan's Foods Inc./MRFD 58 60 4829 Galaxy Parkway, Suite S, Cleveland 44128 $3.7 $2.3 58.2% ($2.2) ($0.0) NM NM Restaurants Leonard R. Stein-Sapir (216) 359-9000/www.morgansfoods.com chairman, CEO Hickok Inc./HICKA.PK 59 59 10514 Dupont Ave., Cleveland 44108 $2.4 $2.4 -2.6% ($0.5) ($1.3) NM NM Products for the Robert L. Bauman (216) 541-8060/www.hickok-inc.com transportation industry president, CEO Central Federal Corp./CFBK 60 58 2923 Smith Road, Fairlawn 44333 $2.3 $4.8 -52.1% ($5.4) ($6.9) NM NM Bank holding company Eloise Mackus (330) 666-7979/www.cfbankonline.com CEO Numerical information provided by S&P Capital IQ, www.spcapitaliq.com. The Market Cap and Total Return data used the April 30, 2012 close price for each company, net RESEARCHED BY Deborah W. Hillyer income figures represent trailing 12-month data through the quarter ending December, January or February depending on the fiscal year end of each company. NA=Not available. NM=Not meaningful. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. The Book of Lists and other specialized business lists are available to purchase at www.crainscleveland.com. 20120604-NEWS--26-NAT-CCI-CL_-- 6/1/2012 2:55 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 Eaton: Auto, truck segments comprise less of balance sheet continued from PAGE 1 uninterruptible power supply systems. EATON’S STRATEGY Klasen downplayed the significance Mr. Cutler said. A few weeks later, it would complete of the reference to the possible sale May 21 announcement of the deal More ‘evolution’ ahead? for Cooper, Eaton had shown through the acquisition for $2.23 billion of Eaton Corp., in a slideshow of assets. Mr. Klasen wrote that a series of acquisitions that its elec- Moeller Group, a German supplier presentation that accompanied Eaton, as stated during its telecon- The changing composition of trical business would be the center- of electrical components for com- a May 21 teleconference with ference, has “at this time no plans to Eaton’s operations over the last piece of the company going forward. mercial and residential buildings securities analysts to discuss its (make) material changes to our decade shows up in the company’s and controls for industrial equip- portfolio post closing of the transac- financial statements as it reports its Electrical deals rule acquisition of Cooper Industries ment. plc, made no mention of its tion.” He offered a similar response results by business segment. From 2008 through 2011, Eaton Those purchases would turn out Truck and Automotive business when asked by Crain’s whether In 2002, the Automotive and completed 18 acquisitions, with two- to be preludes to the deal for Cooper, segments in a slide discussing Eaton might sell or spin off either its Truck segments accounted for 38% thirds of those transactions involving which is a crescendo of sorts for its long-term strategy. What that Automotive or Truck segments. of Eaton’s total sales and 48% of its companies headquartered overseas. Eaton as it concentrates on what it slide, titled “Eaton’s strategy re- Nonetheless, in viewing a slideshow operating profit. Last year, they Of those 18 deals, seven companies calls “power management” — some- mains consistent,” did say, in presentation on Eaton’s website together were responsible for 27% became part of Eaton’s Electrical thing chairman and CEO Alexander bullet point format: that served as a companion to its of total sales and 30% of Eaton’s Rest of World segment, six would “Sandy” Cutler described on the ■ A premier power management May 21 teleconference, a few ana- operating profit. Assuming Eaton th come under its Electrical Americas occasion of Eaton’s 100 anniver- enterprise run as an integrated lysts made note during the call that and Cooper had been together in segment, and four would join its sary as taking on many forms, “from operating company serving references to the company’s Truck 2011, the two segments combined Hydraulics business. improving the efficiency of build- customers globally and Automotive segments were would have made up 20% of all sales. Only one acquisition — Eaton’s ings, planes and vehicles to helping ■ Provide innovative, safe, conspicuous by their absence in a By contrast, “Electrical” wasn’t purchase in July 2008 of the engine massive machines leave a smaller reliable, and efficient electrical, slide discussing Eaton’s long-term even identified as a business seg- valves business of Kirloskar Oil footprint on our planet.” hydraulic, and mechanical solutions strategy. ment in Eaton’s annual report for Eaton stated in the slide that it 2002. Back then, the business was Engines Ltd. of India — would become Asset sales possible across diverse end markets part of the company’s Automotive ■ Focus upon one of the most intends to “(b)uild on our leader- labeled as “Industrial & Commer- segment. And that deal was for a How — or if — the planned acqui- important challenges of our time ship positions through acquisitions cial Controls” (it would be renamed business that totaled just $5 million sition of Cooper eventually will ... reducing the rising cost and in our Electrical, Hydraulics and “Electrical” a year later) and it was in sales in 2007. impact Eaton’s non-electrical busi- increasing environmental impact of Aerospace businesses.” It’s a bullet responsible for generating less than By contrast, Eaton has gobbled nesses remains to be seen. However, the world’s growing energy needs point that gives the definite impres- 28% of Eaton’s total sales and 23% up companies of all sizes as it has the big price tag on the Cooper ■ Maintain balance across sion that future acquisitions will be of its operating profit. added to its portfolio of businesses purchase, and the ton of debt Eaton geographies, the economic cycle, in keeping with Eaton’s recent his- The electrical businesses of a that come under one of its two elec- must take on to swing the deal, and our business mix tory of buying businesses in areas combined Eaton-Cooper would have trical segments. leave open the possibility that ■ Build on our leadership posi- other than auto and truck. produced 59% of total sales last year. Last August, Eaton bought IE Power Eaton will need to sell pieces of its tions through acquisitions in our Mr. Cutler, Eaton’s CEO, affirmed Just how far Eaton intends to go Inc., a company in Mississauga, past as it pursues its future. Electrical, Hydraulics, and Aerospace as much during the question-and- in rebalancing its sales and asset Ontario, that makes high-power Under terms of the transaction, businesses answer part of the teleconference. mix is at the heart of both an obser- inverters for use in solar, wind and Cooper shareholders will receive In response to a question from vation made by and a question from battery energy storage. IE Power $39.15 in cash and slightly more Jeffrey Sprague, an analyst with Ver- Mr. Sprague, the analyst at Vertical had only 24 employees and totaled than three-quarters of a share in the tical Research Partners in New York, Research, during the May 21 confer- just $5 million in sales in 2010, but new combined company — known Citibank to cover that expense. Mr. Cutler said he believes Eaton ence call. an Eaton official said at the time tentatively as Eaton Global plc (aka, Eaton indicated during a May 21 has been “consistent since 2000 “You’re looking a lot more like that the deal gave the company New Eaton) — for a total payout of teleconference with securities ana- indicating that the vast majority of an electrical company,” Mr. Sprague “access to the rapidly growing utility $72 a share, or a 29% premium over lysts to discuss the Cooper deal that our acquisition dollars would be said. “Should we expect more port- solar inverter market.” Cooper’s stock price before the deal it would issue over time about $5.1 spent on building out our electrical, folio evolution over time?” On the opposite end of the spec- was announced. billion in term debt to help replace our hydraulic, and our aerospace Mr. Cutler’s response: “We are trum were two big acquisitions Those terms indicate Eaton will the bridge loan. But in announcing business. not anticipating — it’s not in our act completed in early 2008. shell out about $6.4 billion in cash the deal that day, Eaton also stated “We have continued and will of planning — any substantial addi- In February of that year, Eaton in the transaction, which explains that it might turn to the sale of assets continue to grow our two vehicle tional change in the portfolio as a wrapped up the $565 million why the company secured a $6.75 to help repay debt. businesses, primarily (through) result of this transaction.” purchase of Phoenixtec Power Co., billion bridge financing commitment In an exchange of emails last week internal investments, so that really That isn’t a full-fledged no, but it a company in Taiwan that makes from units of Morgan Stanley and with Crain’s, Eaton spokesman Gary was the point of that amplification,” isn’t a yes, either. ■ Mobile: Limited competition makes Vox attractive to investors continued from PAGE 3 use other smart phones, such as “We’re looking at just a telecommunications companies such few of them provide the same services from 32 in mid-2009. And that iPhones and phones that use Google’s as Telus and even direct competi- Vox Mobile does, said Sever Totia, a doesn’t count the people it plans to Android operating system, often huge opportunity. ... tors, he said. principal at Edison Ventures. hire with the $7.5 million in venture while other employees continue Email, text, phone, The company in November 2010 One reason Edison Ventures capital it just raised. using BlackBerrys. Some companies calendar — that’s all started forming partnerships with invested in Vox Mobile is because it The deal, which closed May 14, have started using iPads, too. And people were really doing managed mobility services providers faces limited competition, Mr. Totia was led by Edison Ventures of some have deployed mobile soft- in different countries. Thus, if the said. Edison also was impressed by Lawrenceville, N.J., with participa- ware applications used by either three years ago.” company has a customer with an the company’s management team tion from one of its limited part- their employees or their own clients. – Kris Snyder, CEO, Vox Mobile office in Germany, Vox Mobile can and its growth rate, he said, noting ners, Permal Capital Management Managing it all has gotten harder, provide that office with local service that Vox Mobile’s sales doubled in of Boston. which has made Vox Mobile’s ser- business customers with mobility through a German company that 2011. Mr. Snyder would not provide Other investors were pursuing vices more appealing, Mr. Snyder management services. belongs to the Global Enterprise revenue figures. Vox Mobile, too, said CEO Kris said. Managing mobile apps also has Mobility Alliance. Work is under way Mr. Totia said the sector itself Snyder. The company started “Email, text, phone, calendar — become a bigger line of business for to turn the seven-member alliance, also was appealing to Edison, which getting calls and emails last year that’s all people were really doing Vox Mobile over the past few years, a contractual joint venture, into a found out about Vox Mobile through shortly after information technology three years ago,” he said. Mr. Snyder said. Today, 30% of Vox formal joint venture company, Mr. Chris Sklarin, an investment man- research company Gartner Inc. Mobile’s clients ask the company to Snyder said. ager the firm hired in Cleveland published a report that included Swimming in new streams manage apps used by either their Mr. Redman described the alli- after it received an investment from Vox Mobile as one of 10 companies The company’s services cover employees or their own clients. That’s ance strategy as unproven but inter- the taxpayer-backed Ohio Capital competing in the managed mobility various issues related to the use of up from about 5% in 2009, he said. esting. Fund. services sector. smart phones and tablet computers. The growing market presents “They have an ability to partner The shift to mobile devices is a In the Competitive Landscape For instance, Vox Mobile deploys opportunities for other companies, with anyone,” he said. big disruption to businesses, Mr. and Managed Mobility Services the devices, trains people to use them too, including some major corpora- Totia said, noting that it resembles report, published last August, Gart- and provides technical support for tions. Among the competitors listed An era of disruption the shift to personal computers or ner also predicted that the market both the devices and the servers in the Gartner report are AT&T, Though the August Gartner report the introduction of the Internet. for such services would hit $3.4 with which they communicate. The Verizon and IBM. listed several competitors in the “That represents huge challenges billion in 2016, up from an estimated company also manages contracts A lack of ability to serve customers managed mobility services sector, to the enterprise,” he said. ■ $382 million in 2011. That’s a nine- with wireless carriers and helps with locations around the world is fold increase. companies develop mobile strate- one of Vox Mobile’s weaknesses, “We’re looking at just a huge gies and policies through a five-person said Phillip Redman, research vice opportunity,” Mr. Snyder said. consulting team called Vox Strat. president in Gartner’s Boston office, Volume 33, Number 22 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- Three years ago, Vox Mobile The consulting team, which was who worked on another report bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, largely was focused on serving busi- started in early 2011, represents a on the sector that was published in the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, nesses that used BlackBerrys, which new revenue stream for Vox Mobile. December. and at additional mailing offices. Price per copy: $2.00. formerly dominated the corporate So does a recent partnership with However, the company does market. Canadian telecommunications firm have a lot of expertise related to POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gra- Since then, however, businesses Telus Corp.; the companies are mobility, Mr. Redman said. Plus, tiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. have started to let their employees working together to provide Telus’ Vox Mobile isn’t afraid to work with REPRINT INFORMATION: 800-290-5460 Ext. 136 20120604-NEWS--27-NAT-CCI-CL_-- 6/1/2012 3:13 PM Page 1

JUNE 4 - 10, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27

Water: ON THE WEB Story from Group sees opportunities in some sectors www.CrainsCleveland.com. continued from PAGE 3 “There are a lot of knowledge-based companies dealing who has attended meetings of Now, developing countries could NorTech’s water working group. Ronald use our help, Dr. Clayton said. with water science in this part of the world.” Pooling their efforts “They’re going to run into a lot of – Harry Shimp, CEO, MCM Capital Partners, which in October bought a McDonald problems that we went through majority stake in Zinkan Enterprises Inc. of Twinsburg. Zinkan produces The working group includes five with the auto and steel industries,” chemicals for water treatment and underground dust control. nonprofits, three universities and he said. 10 private companies, including House preps Rockwell Automation, ABSMateri- Making market waves with expertise in that space, such as She noted how Hanson Pipe and als, Mar Systems and Zinkan Enter- to expand Information NorTech has col- Mar Systems Inc. of Solon and AB- Precast of Irving, Texas, is produc- prises Inc., a Twinsburg company lected so far suggests the region SMaterials Inc. of Wooster. Plus, ing huge pieces of concrete in that makes chemicals for water Cleveland’s Ronald first should focus on three types of NorTech expects that market to hit Macedonia, which the sewer dis- treatment and underground dust McDonald House on Euclid water technology: automation and $2 billion by 2019. One big market trict is using to build the 18,000- control. Avenue will break ground control systems, corrosion protec- for sorbents makers is the natural foot-long Euclid Creek overflow MCM Capital Partners of Beach- Tuesday, June 5, on a 20,000- tion systems, and sorbents, which gas industry, which is booming in storage tunnel in Cleveland. wood bought a majority stake in square-foot expansion that will are used to remove impurities from eastern Ohio and elsewhere. However, the sewer district also Zinkan last October, partly because allow the organization to care for water. The worldwide market for indus- will be looking for nontraditional it wanted to capitalize on the grow- 17 more families each night. Northeast Ohio already is strong trial corrosion protection system is products. For one, the EPA is re- ing demand for water, said CEO The project, which will expand in the first category: Milwaukee- by far the largest, at $60 billion in quiring that the district over the Harry Shimp. And Zinkan isn’t the the house’s capacity to 54 based Rockwell Automation, which 2012. Northeast Ohio’s share is less next eight years spend at least $42 only local company with water-re- families each night, is a direct has operations in Mayfield Heights, than 0.1% today. Even so, the study million on “green infrastructure” lated expertise, Mr. Shimp said. response to the growth in Twinsburg and Warrensville findings suggest that no region designed to reduce the amount of “There are a lot of knowledge- demand for the organization’s Heights, and other local companies dominates the market, which is ex- storm water that flows into the sew- based companies dealing with wa- services. The organization has sell more than $40 million per year pected to grow to $74 billion by er system. Examples include per- ter science in this part of the turned down 3,000 families over of automation and control technol- 2019. meable pavement, vegetative roofs, world,” he said. the past four years because of a ogy for controlling and treating in- All three technologies could be reservoirs and anything else that If NorTech decides to focus more lack of space, according to a dustrial water. That’s about 15% of applied to industrial wastewater harvests rainwater in an environ- on building a water technology news release. the $270 million worldwide market treatment and storm water man- mentally friendly way, Ms. Rotunno cluster in Northeast Ohio, it would The organization launched a for 2012. NorTech expects the mar- agement, Dr. Clayton said. said, noting that the amount spent start by hosting networking events $12 million capital campaign to on green infrastructure likely will fund the expansion. About 75% ket to reach $1 billion by 2019. Vegetative roofs and more and connecting local companies The other categories are bigger, be “much larger” than $42 million. that could work together to solve of the needed funds have been though Northeast Ohio’s market The Northeast Ohio Regional She also said demand for prod- water-related problems, Dr. Clay- raised. Huntington National Bank share in them is small. Sewer District already is spending ucts that mitigate agricultural ton said. The group also could work is providing financing for the Small for now, at least. Although money locally to reduce the runoff is growing. to improve work force develop- project while the remaining companies in the region have less amount of sewage that gets into “If there was a way to cost-effec- ment and education related to the pledges and donations are than 1% of the $1.2 billion market area waterways, said Kellie Rotun- tively handle phosphorus and ni- industry, and it could push for reg- collected. for industrial sorbents and related no, director of engineering and trogen from agriculture, that would ulations that would drive the indus- — Timothy Magaw systems, there are local companies construction for the sewer district. be a big winner,” said Ms. Rotunno, try’s growth, he said. 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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28 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 4 - 10, 2012 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS MAY 21 - JUNE 3 Something’s up drugs sold by its Bedford Laboratories divi- Lack of a degree holding at Ben Venue sion. — Chuck Soder you back? Check this out The big story: A Chicago private equity firm ■ At least it’s planning to restart manufac- A rare topping-off ■ The University of Akron is expanding a bought Things Remembered Inc., which is turing at some point. degree program aimed at assisting those based in Highland Heights, for $295 million. Ben Venue Laboratories Inc. is recruiting party awaits downtown people who are looking for a promotion or a Madison Dearborn Partners acquired Things to fill more than 200 open positions, according ■ If you like watching crews change down- salary bump but who have been stonewalled Remembered from private equity firms Bruck- to an email from spokesman Jason Kurtz. town Cleveland’s skyline, look fast. The by the lack of a bachelor’s degree. mann, Rosser, Sherrill & Co. and GB Merchant Ben Venue stopped producing and dis- process of raising steel skyward at Ernst & The idea behind the program — the bach- Partners. Things Remembered, which sells tributing pharmaceuticals last November Young Tower in the Flats is nearly complete. elor’s of organizational supervision — is to personalized gifts such as blankets, mugs and after multiple inspections by domestic and The developers expect ironworkers to top offer students with an associate’s degree, or pens, operates 640 stores in the United States foreign regulators turned up dozens of quality off the tower this Wednesday, those who never finished and Canada. New York-based Bruckmann Rosser control issues at its plant in Bedford. June 6, as they put in place the college but have an arsenal and Boston-based GB Merchant Partners in 2006 Last Friday, June 1, the website for Ben final structural steel beam at of credit hours, the chance to jointly acquired Things Remembered from Venue’s German parent company, Boehringer the 23-story building. snag a fast-track bachelor’s Luxottica Group S.p.A. Ingelheim GmbH, listed 76 open positions Recent additions to the degree. Daimler demand drives deal: Aluminum in the Cleveland area. The company could skyline were the Pinnacle “It was conceived as a recycler and supplier Aleris said it has signed a be hiring multiple people for some positions. Condominiums in 2006 and degree completion program. four-year contract to provide molten aluminum It’s unclear why there are so many open Carl B. Stokes Federal Court- It’s for those who have a to Daimler AG for the production of cylinder positions at Ben Venue, which employed house in 2002, according backpack of credits but no heads for all Daimler automobile models. about 1,300 people in Bedford last year. Mr. to building and construction place to park them,” said Kurtz did not immediately respond to an website Emporis. The last time FILE PHOTO/STAN BULLARD Larry Gilpatric, chairman of Beachwood-based Aleris did not estimate the Flats East Bank in late April value of the contract. However, the company email and phone messages left for him last a multitenant office building the department of business said it recently installed a fifth furnace at its Friday morning. transformed the skyline was technology at the University Deizisau, Germany, plant to increase capacity by When it shut down manufacturing, Ben in 1991, with the opening of the 57-story Key of Akron’s Summit College. 20% in order to support increased demand from Venue caused drug shortages in the phar- Tower. Mr. Gilpatric said the degree would be ideal Daimler. maceutical industry. For instance, Ben Venue When the 500,000-square-foot Ernst & for those looking to take on a supervisory was the sole supplier of Doxil, a popular Young building opens in 2013, it will close a role at their place of employment. The heart of the matter: The Cleveland ovarian cancer drug marketed by Johnson & 22-year gap since a new, multitenant sky- The program rolled out at the University Clinic expanded its relationship with Cadence Johnson. The New Jersey-based pharma- scraper increased the size of the city’s office of Akron in 2010, but since has been added Health, a Chicago-area health ceutical giant has started importing a similar market. That is a long time, yet still less than to eight other locations throughout the system, to include cardiology drug called Lipodox and has been working the 28-year span between Terminal Tower region. For instance, the program this year services. Cadence Health, to find another manufacturer to make Doxil. in 1930 and 55 Public Square in 1958. expanded to the university’s new Lakewood based in Winfield, Ill., has Although Ben Venue in the past has said Although the structural steel work may be location, Lorain County Community College existing affiliations with the it is working to restart manufacturing, the drawing to a close, workers will continue and other sites. Clinic in the areas of heart company eventually plans to get out of the hanging gray and silver exterior panels to When the program launched, 29 students surgery and oncology. The Clinic contract manufacturing business. Instead, it the steel frame for months to come. — Stan were enrolled. This spring, enrollment grew in recent years has pursued such would focus on producing generic, injectable Bullard to 192 students. — Timothy Magaw affiliations to generate revenue as the health system looks to expand its footprint beyond Northeast Ohio. In 2011, such affiliations generated $10 million in revenue for WHAT’S NEW BEST OF THE BLOGS the Clinic. Excerpts from recent blog entries on the exit, but while under the six-year owner- Enhanced image: ViewRay Inc.’s entire CrainsCleveland.com. ship of Bruckmann Rosser and GB Merchant, medical imaging system now can be used to Things Remembered’s revenue doesn’t treat patients in the United States. The Oakwood With names like this, seem to have grown much and its footprint Village company said its MRI-guided radiation it has to be good appears to have shrunk,” The Journal noted. therapy system has secured 510(k) clearance New York-based Bruckmann Rosser and ■ A $3.3 billion plan in which Cleveland- from the U.S. Food & Drug Administration. GB Merchant said in 2006 that Things based Cliffs Natural Resources Inc. plays a Another piece of ViewRay’s imaging system — Remembered “booked about $300 million prominent role to build North America’s treatment planning and delivery software — of revenue in 2005 through the business’ 653 first major chromite mine deep in the Cana- received FDA approval last year. locations — compared to more than $315 dian wilderness “promises to usher in million in total revenue through 640 stores Transition comes too soon: Aircraft parts an era of prosperity for the region’s for the last fiscal year ended Jan. 28, supplier TransDigm Group Inc. of Cleveland THE COMPANY: Heartland Con- aboriginals and generate millions of according to a recent note by named Bernt G. Iversen II, a nearly 20-year sumer Products, Cleveland tax dollars over its lifetime,” Reuters Moody’s Investors Service,” the blog company veteran, to replace Albert J. Rodriguez, reported. post stated. its executive vice president of business develop- THE PRODUCT: Square Shooters Tucked deep into northern The Journal said Madison Dear- ment and merger and acquisitions, who died dice game Ontario, the so-called “Ring of born “contributed about $163 mil- May 25. TransDigm said Mr. Rodriguez “passed Fire” contains rich mineral de- lion of equity to its buyout, while the away unexpectedly” in Waco, Texas. He was 51. If you’re a game omnivore — dice and posits “that could transform the remainder of the deal was financed Mr. Iversen most recently served as executive cards — Heartland Consumer Products has region much as the oil sands have trans- through proceeds from a $147 million vice president responsible for a group of Trans- something for you. formed Alberta,” the news service said. The senior secured credit facility and a $30 million Digm business units. The company bills Square Shooters as “a region contains North America’s only mezzanine note, according to a Standard & full deck of cards printed on dice.” Users known large-scale chromite deposit. Poor’s Ratings Services disclosure.” Spreading innovation: The Lorain County have the option to play the Square Shooters If Cliffs develops the “Black Thor” project Community College Foundation aims to repli- feature game or versions of other card in the “Ring of Fire,” it “will likely revolu- An ‘iconic cultural destination’ cate its Innovation Fund in other regions. The games such as rummy, 21 and poker. It can tionize the stainless steel industry on the foundation was awarded a $1 million grant from be used as a simple matching game for kids continent, which now relies on imports rises in University Circle the Ewing Marion Kauffman Foundation and or a game of chance for adults, “making it a from South Africa and Kazakhstan,” Reuters ■ Architectural website Arch Daily called plans to use the money to help other community good fit for families,” the company says. reported. attention to the new Museum of Contempo- colleges start programs that resemble its Inno- Heartland also is taking the game to Face- rary Art Cleveland building that’s rising in vation Fund. The Innovation Fund America book with a contest called “That’s How I Roll.” Remember these things the University Circle area. project will begin in three communities, with The challenge on Square Shooters’ Face- “With its strong formal moves, the museum plans to add more later. book page (www.facebook.com/square about Things Remembered intends to aid the city’s urban revitalization shooters) allows fans to show their game- ■ The new owner of Highland Heights-based efforts by shaping an iconic cultural desti- This and that: Cleveland State University playing style for a chance to win $1,000 in Things Remembered Inc. has “seized a nation alongside its neighboring concentra- named Steve Percy, a Cleveland native and prizes. Contest participants are encouraged challenging investment” from the personal- tion of museums, such as the Cleveland former chairman and CEO of BP America Inc., to express how they roll by submitting a pic- ized gift chain’s previous backers, according Museum of Art and the Cleveland Museum as interim dean of its Monte Ahuja College of ture and a short caption that illustrates their to a blog post from The Wall Street Journal. of Natural History,” Arch Daily said. Business. He replaces Robert Scherer, who last personal style. The Facebook contest runs Chicago private equity firm Madison A public opening will be celebrated in month accepted a similar post at the University through July 2. Dearborn Partners paid $295 million to buy early October. The website noted the inau- of Dallas. … Case Western Reserve University Back in the physical world, Square Shoot- Things Remembered from private equity gural exhibition, “Inside Out and from the broke its fundraising record for the second ers costs $12.99 for a basic set and $19.99 firms Bruckmann, Rosser, Sherrill & Co. and Ground Up,” will feature “an in-depth look straight fiscal year, as it reports raising $134.5 for a deluxe set. The game is available at GB Merchant Partners. Bruckmann Rosser at how international artists engage with million — more than $8 million ahead of last Walmart, Walgreens, Barnes & Noble, Books- and GM Merchant had owned Things architecture and spatial ideas.” year’s total. A-Million and many independent retailers. Remembered since 2006. See photos from the Arch Daily post at For more, visit Heartland-Products.com. “It’s unclear how the two firms fared on tinyurl.com/7msy9ro. 20120604-NEWS--31-NAT-CCI-CL_-- 6/1/2012 10:18 AM Page 1

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For advertising information, contact Nicole Mastrangelo at 216-771-5158 or [email protected] 20120604-NEWS--32-NAT-CCI-CL_-- 5/31/2012 3:36 PM Page 1

The all-new BMW 6 Series Gran Coupe

The Ultimate BMWCleveland.com Driving Machine® 440-542-0600

6 + 4. PERFECT 10. What happens when you put four doors on the iconic BMW 6 Series? The all-new 2013 BMW 6 Series Gran Coupe. A stunning, luxurious BMW with uncom- mon performance. We haven’t improved an icon; we’ve created an entirely new one. We only make one thing. The Ultimate Driving Machine.® THE ALL-NEW GRAN COUPE . THE FIRST-EVER 4-DOOR 6 SERIES. BMW EfficientDynamics Less emissions. More driving pleasure. BMW Cleveland 6135 Kruse Dr. • Solon • 1-866-210-6710

STRIP AWAY THE SETTING AND YOU’RE STILL LEFT WITH THE EXTRAORDINARY.

DRIVE THE EXTRAORDINARY SALES EVENT Seating for seven in the Land Rover LR4: because no one should miss the adventure. Drive the extraordinary with attractive offers available through May 31.

2012 LAND ROVER LR4

699PER MONTH FOR 48 MONTHS $0 SECURITY DEPOSIT. 995 DOWN DUE AT SIGNING. EXCLUDES TAXES, TITLE, LICENSE AND FEES. INCLUDES 7 © 2012 Jaguar Land Rover North America, LLC SEAT COMFORT PACKAGE (7HS) AND CLIMATE COMFORT PACKAGE (CCP). LAND ROVER SOLON 6137 KRUSE DR., SOLON * LEASE 2012 XF FOR $599/48 MOS 1-866-210-6707 | www.landroversolon.com JAGUAR CLEVELAND 6137 KRUSE DR., SOLON • (440) 542-0601 LAND ROVER LR4 www.jaguarcleveland.com *Rates shown for customers with exceptional credit approved by a participating lender. All amounts shown are estimates, retailer sets actual * 48 month lease. Total due at signing $1,699. Includes $999 down payment, $0 security deposit plus tax, title and fees extra. MSRP $54,575. Customer responsible for excess wear and tear. 10,000 amounts.Amount due at delivery including down payment $2076. Lessee responsible for excess wear and excess mileage over 40,000 miles at $0.30 miles per year. With approved credit through Jaguar Financial services. Expires 6/30/12. /mile. Lessee has the option to purchase vehicle at lease end at price negotiated with retailer at signing. For special lease terms, take new vehicle delivery from retailer stock by 6/30/12. See your Land Rover Retailer or call 800-FIND-4WD for qualifications and complete details.

6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com