New Arcade Owner Eyes Apartments at Hyatt
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20120102-NEWS--1-NAT-CCI-CL_-- 12/30/2011 9:08 AM Page 1 $2.00/JANUARY 2 - 8, 2012 Predicting the outcome for seven Northeast Ohio sectors PAGES 11-15 WIN: Finance, manufacturing, small business LOSE: Local government, real estate DRAW: Health care, technology New Arcade Backers of owner eyes lake turbine farm seek The Cleveland Clinic’s new pathology apartments and laboratory medicine building Kasich’s nod at Hyatt By CHUCK SODER Clinic pursues [email protected] Firm has track record Gov. John Kasich will have a big new revenue say over whether wind turbines end of bringing residential up in Lake Erie anytime soon. A coalition that aims to build a by expanding component at historic sites small wind farm in the lake is working to convince the Ohio Legislature to By STAN BULLARD pass a law that could determine lab operation [email protected] whether the project can secure financing, said Chris Wissemann, By TIMOTHY MAGAW The quest by Skyline International Devel- general manager of Freshwater [email protected] opment of Toronto to make a go of the Wind LLC, the project developer. landmark Old Arcade in downtown Cleve- Hence, project proponents will The Cleveland Clinic is putting the land includes a possible switch to residen- need the support of Gov. Kasich, who final touches on a $75 million building tial use of part of the building that houses this spring is expected to announce that officials hope will pump new the 293-room Hyatt Regency Cleveland. the details of a comprehensive energy blood into the health care jugger- Word of the potential change comes from policy for the state. naut’s revenue stream. Skyline’s majority owner, Mishorim Devel- To win the governor over, the The three-story, 135,000-square- opment Corp. of Israel, which is traded on coalition has held multiple meetings foot building at the intersection the Tel Aviv Stock Exchange. In a notice with his policy advisers over the past of East 105th Street and Carnegie about the Arcade acquisition to the Tel Aviv year, arguing that the state can Avenue in Cleveland will house the exchange, Mishorim said, “Skyline plans to create jobs and build a leadership Clinic’s Pathology and Laboratory convert 100 of the hotel rooms into resi- position in an emerging industry by Medicine Institute — the arm of the dences and sell them, as the company has CRAIN’S FILE PHOTO building the first offshore wind farm Clinic that conducts various forms of done in other projects. The new owner of the Old Arcade sees “potential” in converting some of in the Great Lakes. See CLINIC Page 17 See ARCADE Page 17 the Hyatt Regency’s suites inside the building into apartments. See WIND Page 18 01 INSIDE 6 Auto sales forecast for 2012 brightens with employment, new product availability ■ Page 4 NEWSPAPER Entire contents © 2012 74470 01032 PLUS: COUNTY GOVERNMENT REVIEW ■ by Crain Communications Inc. Vol. 33, No. 1 0 PUBLIC CONSTRUCTION REFORM ■ & MORE 20120102-NEWS--2-NAT-CCI-CL_-- 12/30/2011 9:29 AM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 2 - 8, 2012 COMING NEXT WEEK HEADING SKYWARD Average domestic airfares rose 8.5% to nearly $370 in the second quarter of Preparing to partner 2011 from about $341 in the like period a year ago, according to new federal statistics. The data cover the 100 largest U.S. airports. All five Ohio airports In our monthly small business section, included in the data saw second-quarter fare increases that were higher than the 700 W. St. Clair Ave., Suite 310, we look at some of the factors that national average. Here’s how they fared: Cleveland, OH 44113-1230 Phone: (216) 522-1383 should be considered before going into Fax: (216) 694-4264 Average domestic Average domestic Change www.crainscleveland.com a business arrangement with someone. Airport Plus, our new “Getting Ahead” feature fare Q2 2011 fare Q2 2010 Q2 2010-11 Publisher/editorial director: Brian D. Tucker ([email protected]) debuts. Cincinnati $476.06 $425.67 11.8% Editor: Cleveland 428.26 389.58 9.9 Mark Dodosh ([email protected]) Managing editor: REGULAR FEATURES Dayton 370.88 329.86 12.4 Scott Suttell ([email protected]) Sections editor: Best of the Blogs ........19 Going Places ..............10 Columbus 353.18 315.31 12.0 Amy Ann Stoessel ([email protected]) Assistant editors: Big Issue ......................9 Personal View ..............8 Akron/Canton 329.67 286.19 15.2 Joel Hammond ([email protected]) Classified ..................18 Reporters’ Notebook ..19 U.S. averages 369.67 340.72 8.5 Sports Editorial ......................8 Tax Liens......................9 Kathy Carr ([email protected]) Marketing and food From the Editor ............8 Year in Review............16 SOURCE: BUREAU OF TRANSPORTATION STATISTICS; WWW.BTS.GOV Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Tim Magaw ([email protected]) Health care & education Michelle Park ([email protected]) Finance Research editor: Deborah W. 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Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20120102-NEWS--3-NAT-CCI-CL_-- 12/30/2011 9:09 AM Page 1 JANUARY 2 - 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Past passed, county looks ahead new or expanding companies that Deliberate FitzGerald, council see progress in ethics, cost-cutting efforts need help with site development or redevelopment; and more traditional By JAY MILLER INSIDE: A closer look at how the county’s economic development fund will work. Page 6 lending programs to help with acqui- [email protected] sitions, business attraction and the retraining of workers. The new Cuyahoga County govern- a time to begin to look ahead to the Cleveland that will support the new The administration expects that ment celebrates its first birthday Jan. future of the county. convention center and medical most of the money will go to smaller 3 with 365 fewer employees, a more At the top of the list of priorities of mart the county is building and the businesses that may end up employing rigorous ethics policy and a plan to both leaders is the county’s new Horseshoe Casino Cleveland. 30 people or fewer. start spending from its $100 million economic development fund. The Mr. FitzGerald has laid out a plan “Large-scale attraction deals are economic development fund. $100 million fund has been under for 11 economic development pro- exciting, but they are rare,” Nathan Both County Executive Ed council review since last fall, after an grams that will begin to roll out this Kelly, Mr. FitzGerald’s deputy chief of FitzGerald and County Council Pres- independent economic development month and should be completed by staff for development, told the county ident C. Ellen Connally believe they commission last July 26 approved a April. The programs are organized FILE PHOTO/MARC GOLUB council Dec. 19. “For the first time, we have had a good, if hectic, first year five-year economic development in three categories: support for new Then-new Cuyahoga County executive anticipate having the resources to com- regaining the respect of citizens and plan. Mr. FitzGerald said he hopes companies or young innovative Ed FitzGerald speaks last Jan. 14 at a pete for large-scale attraction deals.” creating new roles for the restruc- to use the fund to build businesses firms that still are developing their groundbreaking for Cleveland’s new tured government. Both see 2012 as and infrastructure in downtown products and strategies; money for See COUNTY Page 6 medical mart and convention center. THE WEEK IN QUOTES “By being first, what SAME FACE, you get is a blueprint for the second, third NEW PLACE and fourth to be done.” Longtime Clevelander Eddie Taylor joins — Chris Wissemann, general forces with Oswald insurance brokerage manager of Freshwater Wind LLC, which wants to build a wind energy farm on Lake Erie. By MICHELLE PARK [email protected] ne of this region’s most well- “I think it’s a wakeup known African-American entre- preneurs is lending his leader- call to local institu- ship and name to a new spoke Oin the wheel of the Oswald Cos.