Marquee Hotel Is on the Block

20140303-NEWS--1-NAT-CCI-CL_-- 2/28/2014 4:30 PM Page 1

$2.00/MARCH 3 - 9, 2014

Marquee hotel is on the block asked not to be identified, the Sources say Chicago-based hotel brokerage unit of Jones Lang LaSalle is shopping the Renaissance Cleveland Hotel on brokers shop behalf of its owner, CTF Develop- ment Inc., which is led by the Cheng the Renaissance family of Hong Kong, a global power in the hotel business. By STAN BULLARD Jackie Brown, CTF Development’s [email protected] Washington, D.C.-based asset manager, wouldn’t comment on whether With Cleveland focused on grow- the nearly 500-room hotel is on the ing its meeting business and bid- market or nearing a sale. Two ding for a national political conven- sources said Jones Lang LaSalle bro- tion in 2016, a big change may be kers Adam McGaughy and John Nu- shaping up at the city’s largest and gent have been circulating the offer- oldest downtown hotel thanks to ing. Neither McGaughy nor Nugent the family half a world away that returned three calls each over the owns it. last two weeks from Crain’s. According to three sources who See HOTEL Page 6

CONTRIBUTED PHOTO Grand plans give way The Nautica Entertainment Complex can accommodate crowds of up to 10,000. to sad ending at Dots JOINING THE CROWD based Dots in a liquidation that’s Women’s retailer costing employees their jobs, may leave landlords across numerous Upgraded Nautica space is now capable ON THE BOARDWALK will be liquidated; states with vacant storefronts, and For a schedule of Nautica’s could reduce income tax revenues for of hosting gatherings of 10,000 or more coming events, go to: ‘devastated’ workers the village, Solon City Schools and www.nauticaflats.com/events other municipalities, at least for now. By RACHEL ABBEY McCAFFERTY scale events. will lose their jobs After Dots filed for Chapter 11 [email protected] The complex — 22 acres of open bankruptcy protection Jan. 20, a firm space and properties including Ja- use the available space, allowing By MICHELLE PARK LAZETTE hired on Dots’ behalf conducted “a fter investing the last few cobs Pavilion at Nautica and the guests easily to plan events in one [email protected] wide sale process and reached out to years in its Nautica Enter- Greater Cleveland Aquarium — had or more of its venues. By installing about 275 potential candidates,” ac- tainment Complex in the a great 2013 in terms of revenue and removable fences and easing access The vision shared two-and-a-half cording to an attorney for Dots, but Flats, Jacobs Entertain- visitors, said Paul A. Ertel, general to the different venues within the the retailer didn’t find a “reasonable” mentA Inc. wants to build off the en- FirstEnergy Powerhouse during years ago was that women’s cloth- manager of Nautica and regional ing retailer Dots LLC could grow to offer. Now, all its roughly 360 stores ergy of the new Cleveland Conven- vice president for community rela- events, Ertel said Nautica now can 1,000 stores from the 400 it ran at will be liquidated through “every- tion Center and the Global Center tions and marketing for Jacobs En- accommodate crowds of up to the time. Soon, there will be none. thing must go” sales, which are ex- for Health Innovation by pitching tertainment. But the company isn’t 10,000 — or even more, if tents Twenty-seven years of retailing is pected to wrap up in May. its upgraded space along the Cuya- satisfied with the status quo. along the river are included. coming to an end for Glenwillow- See DOTS Page 8 hoga River to planners of large- Instead, it has worked to better See CROWD Page 21

09 SPECIAL SECTION 7 REAL ESTATE

74470 83781 from retail kiosks and shops ■ Pages 15-19 by Crain Communications Inc. Vol. 35, No. 9 0 PLUS: SCATTERED SITES ■ LOVE IT OR LEAVE IT? ■ & MORE 20140303-NEWS--2-NAT-CCI-CL_-- 2/28/2014 11:36 AM Page 1

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014 LEASED Produce program grows healthy habits By KATHY AMES CARR HIGHLAND BUSINESS PARK [email protected] 4520 RICHMOND RD, WARRENSVILLE HTS, OH John Kado was at the pediatric clinic last year with his then 5-year- old daughter Destiny Hall when her doctor suggested she consume more leafy greens. As it turns out, local foods provider Fresh Fork Market was out in the waiting room, distrib- uting discounted bags of produce to patients at University Hospitals’ main campus. Newmark Grubb Knight Frank “The local food was delicious, nu- Visit tritious and less expensive than the is pleased to announce TerryCoyne.com Embrace Pet Insurance has leased stuff at the neighborhood grocery Or Call Terry at 13,680 SF at 4520 Richmond Road 216.453.3001 store,” Kado said. “They gave us in Warrensville Heights, Ohio. recipes with our produce, and my 1350 Euclid Ave, Ste. 300 daughter just can’t get enough of the Terry Coyne represented the landlord. Cleveland, Ohio 44115 kale smoothies we make.” David Hollister represented the tenant. UH’s Healthy Harvest pilot program — which seeks to encourage the consumption of healthier foods by pediatric and prenatal patients — is likely to expand food distribution to two times a week at multiple clin- MCKINLEY WILEY ics, beginning in May, as part of the John Kado and his 6-year-old daughter, Destiny Hall, are big fans of University Hospitals’ Healthy Harvest pilot program. health system’s larger strategy to in- troduce patients to more locally every available apple we could find lay’s Farm in Peninsula for use in its grown foods. that was grown within a 155-mile cafeterias and its upscale bistro “Many of our patients come from radius, and we still couldn’t find Virtues, which is at Summa’s Akron food deserts, and we want to help enough sustainably produced ap- City Hospital. Summa continues to them access more fresh, local and ples” to meet the Clinic’s needs, encourage Sirna and Sons, its sustainable food,” said Meg Oberle, Roizen said. Ravenna-based wholesale food sup- a resident physician and program Nonetheless, the region’s largest plier, to provide more local produce organizer at UH. health care provider still has made when available, and also is explor- Throughout Northeast Ohio, hos- considerable inroads since it signed ing other channels for local foods. pitals are ramping up efforts to in- in 2008 the national Healthy Food “I’ve been talking for a year and a corporate into their menus more in Healthcare Pledge to reduce the half with a local outfit that is build- fruits, vegetables and other bounty environmental impact of its food ing a greenhouse in Wooster solely supplied by producers located within 250 miles of their doors. service operations. In just one year, to produce hydroponic lettuce,” University Hospitals, for example, the Clinic in 2013 boosted its local said Don Smith, Summa’s system Aggressive Financing up to 10M! is aiming by 2016 to reduce by 20% food purchasing to 23% of its total director of food nutrition and retail its annual meat purchases and to in- food purchases from 12% in 2012. services. “But it’s hard for them to Cooperative Business Services and Medina County Federal Credit crease by 20% both healthy beverage Among the 30-plus local food get from the point of startup to pro- Union have teamed up to provide you with commercial real estate purchases and spending on locally companies from which the Clinic ducing the volume to satisfy our ÀQDQFLQJIRURZQHURFFXSLHGRULQYHVWPHQWSURSHUWLHV grown foods under the national buys products are Huron-based needs. Healthier Hospitals initiative. Chef’s Garden and Cleveland-based “There are a lot of hurdles for the Within the last three years, UH has Orlando Baking Co., along with small guys to clear,” Smith said. Jonathan Mokri been using locally grown lettuce at smaller operations such as Crooked “Transportation is another major River Coffee Co. in Cleveland. barrier for the smaller farmers and various locations throughout the MPRNUL#FEVFXVRFRP health system, established a farmers “We’re constantly pushing our can really push the price of their market at University Hospitals Case vendors to do more locally,” Roizen product high. It’s easier to work Medical Center in Cleveland, and al- said. “Our main criteria is that the with a Sirna, who can bring the lo- ZZZFEVFXVRFRP lowed local farmers to operate retail vendor is set up to meet quality and cal food to us.” stands at satellite campuses. safety requirements. Farmers usu- Only about 5% of St. Vincent ally don’t have a problem with that. Charity Medical Center’s food pur- Providing Commercial Loan Financing in Partnership with Area Credit Unions SM Matthew Pietro, sustainability specialist at UH, said the use of local The main issue is product availabil- chases are local, said Phillip Begal- produce “ties into our environmen- ity.” la, director of food and nutrition at tal priorities because fewer miles are A possible solution to meeting Metz Culinary Management, a con- traveled to deliver the products.” hospitals’ demands for more food tract food service provider. St. Vin- “The fruits and vegetables are from local sources is the establish- cent recently entered into a partner- more nutritionally dense, and we’re ment of more large-scale sustain- ship with its current food supplier, supporting the local economy,” able farming operations, such as Sirna and Sons, to buy Green City Pietro said. Green City Growers in Cleveland’s Growers produce; it’s an expendi- Central neighborhood. ture that will range from $200 to The 3.5-acre hydroponic green- $1,000 weekly, or 13% to 40% of its Growing pains house — the largest food produc- overall weekly produce spending, and its affiliate fund, Short Vincent Partners III, Hospitals not only are responding tion greenhouse in any core U.S. ur- depending on the season. to the public’s demand for healthier ban area — saw its first complete But St. Vincent’s overall spend- is pleased to announce the acquisition of foods, but also are acknowledging yield in 2013 of 4 million heads of ing on local food is unlikely to in- their purchasing decisions can play lettuce and 300,000 pounds of crease much, at least in the near fu- a large role in promoting healthier herbs, founder Mary Donnell said. ture, as bulk orders bought through diets and influencing how well pa- The greens crop up in the salad bars conventional suppliers tend to cost tients fare. at University Hospitals and Cleve- less. Parachute and aerial delivery systems, South Windsor, CT But even small shifts to local food land Clinic, though the operation “Whenever possible, we use local purchasing come with obstacles. doesn’t track distribution to each because we believe it’s important “A major limitation for us is being institutional customer. for sustainability, but we must also able to find a producer who can con- balance that with the reality of cost efficiencies,” Begalla said. “A lot of sistently meet our volume de- Costly proposition Electrical and mechanical timers and motors, mands,” said Dr. Michael Roizen, local growers don’t have the distri- South Windsor, CT chairman of the Cleveland Clinic’s Akron-based Summa Health Sys- bution capability as some of the Wellness Institute. tem is buying greens from Chef’s larger ones, so you know, their ap- “Two years ago, we purchased Garden and vegetables from Sza- ples are more expensive.” ■

Cable and wire hand tools, Cromwell, CT Volume 35, Number 9 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: CapitalWorks, LLC • 3000 Auburn Drive, Suite 430 • Cleveland, OH 44122 Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- (216) 781-3233 • www.capitalworks.net 9911, or email to [email protected], or call 877- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- REPRINT INFORMATION: 800-290-5460 Ext. 136 tions), or fax 313-446-6777. 20140303-NEWS--5-NAT-CCI-CL_-- 2/28/2014 3:05 PM Page 1

MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 INSIGHT COSE board shifts focus in push to remain relevant By JAY MILLER membership. Now, with the advent its kind in the country, with 17,000 though COSE still calls it- and generally be the place [email protected] of the Affordable Care Act, COSE is members until recently, primarily self the largest small busi- small businesses turn to refashioning itself from an organi- due to its innovative program of ness support organization first when they’re looking At the age of 42, the Council of zation that sells products to one health insurance group purchasing. in the region. for help. Smaller Enterprises is looking to be that connects its members to the It could offer the lowest-cost insur- Rion Safier, COSE’s new In a meeting last Mon- rejuvenated. kinds of help they need to run their ance to small businesses, even one- board chairman, said the day, Feb. 24, with Crain’s Faced with the loss of a key value small businesses more effectively. person businesses. goal is to be the glue that staffers, Safier and Millard it offered members — discounted Steve Millard, who has been But changes in health insurance, connects small businesses outlined where they are tak- health insurance — the small busi- COSE’s president since 1999, says the driven in part by the Affordable and helps them learn to be Millard ing the organization. A big ness advocacy organization hopes organization is “making the most Care Act and the online health in- more effective and suc- part of that strategy is to ex- to retain members by finding new fundamental shift in our approach surance marketplace it created, cessful. It plans to be a hub for ac- tend the organization beyond its ways to be relevant. that we’ve made in 15 or 20 years.” have pulled the rug out from under cess to capital and for identifying traditional base of established small It used to be that COSE could of- The changes will be backed with the affiliate of the Greater Cleve- and attracting skilled workers. to midsize businesses primarily in fer small businesses employee a new branding strategy, including land Partnership, the regional COSE also wants to be an advocate the Cleveland area as its member- health insurance at a savings that a new logo. chamber of commerce. Member- for small businesses across Ohio ship — and revenue — shrinks. more than covered the price of COSE became the largest group of ship is down to about 14,000, before legislators and regulators, See COSE Page 22 Lake Health determined to maintain freedom

By TIMOTHY MAGAW [email protected]

Lake Health barely broke even last year, but the scrappy, two-hospital system in Lake County is stubborn in its intention to remain unattached to a larger system even as most of its regional counterparts have cozied up PHYSICIANS with the Cleveland Clinic, Universi- ty Hospitals and other health care behemoths. It won’t be easy, as experts say bigger systems are more equipped to compete in the current health care PASSING NOTES environment. Last year, for instance, EMH Healthcare in Elyria and Parma Community General felt they could- n’t stand on their own and opted to The financial reason more hospitals and become part of UH’s growing enterprise. doctors will soon share information Lake Health, however, said its leading market position in Lake By CHUCK SODER With the passage of the American Recovery hospital systems say they should be ready to ex- County and its stable finances — [email protected] and Reinvestment Act of 2009 — also known as change those digital documents and meet other even after a disappointing 2013 — the stimulus bill — the federal government start- Stage 2 standards in time for the deadline. will allow the health system to grow new era in health care will begin later ed pushing health care providers to install elec- Physician offices that have met Stage 1 re- on its own merits without a cash in- this year — and doctors who aren’t part tronic medical record systems and put them to quirements for two years have until Dec. 31 to fusion from another system. of it could get smaller reimbursements use. meet Stage 2 requirements, but it’s unclear how “Our focus is to remain indepen- from Medicare and Medicaid. Many local hospitals and private practice doc- many will be ready. dent,” said Rick Cicero, Lake ABy the end of 2014, many hospitals and some tors already have met the first set of federal re- Providers that fail to meet their Stage 2 dead- Health’s senior vice president for physician offices in Northeast Ohio should reach quirements showing that they adequately use lines could lose their bonus payments from business development. “We’re not a goal they’ve been striving toward for years: their electronic record systems. And they’ve been Medicare and could start receiving slightly lower involved in any merger discussions They’re expected to start sending each other rewarded with bonus payments from Medicare, reimbursements from that program. Their Med- with other hospitals or health sys- standardized digital documents designed to con- Medicaid or both. icaid bonuses could be deferred until they reach tems. We think we’re financially tain all the basic information a doctor typically Stage 2. strong.” would need to start treating a patient coming Government officials have said they will be Last year, Lake Health scraped by from another physician across town. flexible regarding the deadlines, which is good, with $1.06 million in operating in- Many local health care providers are on a last- said Cathy Costello, director of regional exten- come — an operating margin of a minute push to install the technology and sion center services for the Ohio Health Informa- mere 0.3%, according to unaudited processes needed to send those transition-of-care tion Partnership in Columbus. She noted that financial results provided by the documents smoothly to one another. Those who most electronic medical record software prod- health system. Lake Health finished succeed won’t immediately use the technology for ucts can’t meet every Stage 2 requirement. 2012 in the black by roughly $7.29 every patient they refer to each other, but some lo- “I think the federal government is more inter- million, an operating margin of a cal health care providers will put the capability to Setting the stage ested in seeing us move ahead as a country than healthier 2.3%. good use late this year and early next year, accord- Now the government is raising the bar on being punitive,” Costello said. Moody’s Investors Service chalked ing to several local health care providers. health care providers that already have met Stage Nationwide, some private practices don’t even up the “significant and unexpected Some of them expect the process to become 1 of the so-called “meaningful use” requirements use electronic record systems in a way that meets downturn” in operating income to a fairly common in 2015. for at least two years. Stage 1 requirements. sizable patient admissions decline of Doctors will glom onto the technology once By Sept. 30, those hospitals — among them are As of last October, 85% of U.S. hospitals had re- 9%. they experience what it’s like to get fast access to the Cleveland Clinic, University Hospitals and ceived at least one bonus payment, but that Cicero said the decline was due to patient information that at the moment can take the MetroHealth System — are required to have number falls to 60% for non-hospital health care Lake Health’s efforts in care man- days to receive, said Robert Lipowski, who leads data in hand proving that they can exchange providers, according to federal data. agement that have resulted in fewer health information exchange initiatives at the transition-of-care documents with other Laggards can avoid penalties by at least meet- admissions to the hospital. He de- Cleveland Clinic. providers that use different electronic medical ing Stage 1 requirements, which then will start scribed the decline as “more of a “There is a strong … appetite for the exchange record systems and to meet other more stringent them on the clock to meet Stage 2 and start shar- success in a strange way because we of information,” Lipowski said. Stage 2 meaningful use standards. ing electronic patient records. are managing patients better.” There are strong financial incentives, too. Officials from all three of Cleveland’s major See PHYSICIANS Page 21 See LAKE HEALTH Page 6 20140303-NEWS--6-NAT-CCI-CL_-- 2/28/2014 3:09 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014

OFFICE/DATA CENTER FOR SALE Hotel: 7165 E. PLEASANT VALLEY RD. Window for deal likely is now INDEPENDENCE, OHIO continued from PAGE 1 With Cleveland poised to benefit from the new Cleve- land Convention Center and Global Center for Health Innovation and developers planning to add to the lodging mix five hotels — including a Westin in a drastically renovated former Crowne Plaza Hotel — the offering comes at an opportune time. The city’s hotel prospects are on the upswing as the cyclical hotel business enters the binge stage. David Sangree, president of the Hotel & Leisure Advi- sors consulting firm in Lakewood, said the property is likely to garner interest from national hotel companies and publicly traded real estate investment trusts. “They like to buy in larger markets and typically avoid • 38,000 SF • Dual Back-Up a small market like Cleveland,” Sangree said. “But with an asset like the Renaissance, because it is the largest • 5.45 Acres Generators hotel in downtown Cleveland and it is historic, they • 115 Parking Spaces • Close Proximity to might take a look at it.” STAN BULLARD • Fully Sprinklered I-77 & I-480 The Renaissance Hotel Cleveland stands beneath the Timing is everything adjoining Terminal Tower. seventy-fifth 75 anniversary Christopher J. Hondlik, SIOR Lawrence F. Kell, SIOR The crucial aspect of the offering is the timing. The naissance, it could signal that Cleveland finally may be 216.861.7200 window for a sale is widest now, before construction be- arriving in the hospitality market. www.ostendorf-morris.com gins for a 600-room convention center hotel with a pro- A group of Cleveland businessmen saved the 1918 global commercial real estate services posed 2016 opening. That hotel now is in the design vintage landmark from receivership in 1976. The prop- phase, with Hilton Corp. on board as its operator on be- erty later became part of the former Stouffer Hotels Co. half of Cuyahoga County government, which would portfolio, which a CTF Development predecessor com- own the property. pany absorbed in 1993. Its public areas were updated in “When the Hilton opens, the dynamics of the market 2010. will change,” Sangree said. “At this point, that is un- One name that immediately surfaces as a potential known” until the property actually opens, he said. bidder for the property is Dan Gilbert, co-owner of the The county is launching the convention center hotel Cleveland Cavaliers; his Rock Gaming LLC is a partner to increase Cleveland’s ability to secure big conventions with Caesars Entertainment Corp. in Rock Ohio Caesars that demand attached hotels. However, the massive LLC, operator of Horseshoe Cleveland Casino, which is property and other new hotels will dilute the lodging in the same complex of buildings as the hotel. market when the convention center is dark or at less Jennifer Kulczycki, spokeswoman for Rock Gaming, Is solar right than capacity. said in an email that she had heard nothing about the Still, creating a convention center hotel is a gamble Renaissance hotel. for your business? David Gilbert, president and CEO of Positively Cleveland, “And we kind of have a hotel already,” she said, refer- the city’s convention and visitors’ bureau, repeatedly has ring to the Ritz-Carlton Cleveland, which Rock Ohio said local hotel operators want the community to take be- Caesars bought in 2011. Thursday, March 6, 2014 cause of its potential upside for their businesses. Gilbert Sangree also pooh-poohs the idea of Gilbert as a buy- declined to comment last week on the impact of a poten- er. Noon to 1:00 p.m. EST tial Renaissance sale because it is a hypothetical situation “(He) might be a person who wants to look at the Location: McDonald Hopkins, Fifth Third Center and he has no information on it. property,” Sangree said. “The question is whether he 600 Superior Ave., East, Suite 2100, Downtown Cleveland would be interested in buying the property, given the in- Register at mcdonaldhopkins.com Scan to register vestments in the casino, the Higbee Building, the Ritz or call: 216.348.5400. Will Gilbert kick the tires? and land for parking and constructing a new casino. He Should big hotel companies take an interest in the Re- may want to use that money for another purpose.” ■

McDonald Hopkins LLC Lake Health: Smaller systems can thrive 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member continued from PAGE 5 continuing its efforts to weed out also opened a 9,800-square-foot Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach Moody’s, which maintains a neg- waste and to improve certain medical office in Mentor with 14 ative outlook on not-for-profit hos- processes. Also, in January, the physicians, who offer primary care, mcdonaldhopkins.com pitals, still holds a favorable view of health system launched a market- pediatrics, urology and a host of Lake Health. However, the credit ing campaign with the tagline “We other services. rating agency noted in a recent re- Get It,” which could improve pa- In early 2009, UH opened a port that the health system’s stable tient numbers. 61,000-square-foot health center in outlook likely would shift to nega- “We think we’re a little different Concord — a stone’s throw from tive if it doesn’t finish 2014 with here,” Cicero said. “We understand Lake Health’s flagship TriPoint stronger numbers. patients want to get their care close Medical Center. Also, UH has in- to home. They want their physician vested heavily at its Geauga Med- to listen to them. When they come In sickness and in health ical Center, a 226-bed hospital in to hospital, they want to be treated Chardon, close to the Lake County Thomas Campanella, director of in a great way. … We think we get border. In 2012, for example, the Baldwin Wallace University’s it.” health system polished off a $5.5 health care MBA program, said he million, 4,600-square-foot project believes smaller systems can thrive Feeling the pressure? at Geauga for its cancer program. AIR CHARTER SERVICE on their own, though it will be diffi- And further east, UH is plotting a AIRCRAFT MANAGEMENT cult. Providers are urged by govern- As the only provider with a hos- $1.5 million upgrade at its Geneva ment officials and insurers to man- pital in Lake County, Lake Health Medical Center in Ashtabula age patients better, although the maintains a 56% market share of County. payment methodologies of com- patients who reside in the county. Lake Health, however, has mercial and government insurers The Clinic and UH have invested tapped the clinical expertise at both have yet to reward them for doing heavily in health centers within the Clinic and UH to augment its so, thus creating issues for systems Lake Health’s service area over the own services. For instance, Lake such as Lake Health. last few years, though Cicero main- Health and UH collaborate on can- “The U.S. health care system has tains those expansion efforts cer care, while the Clinic has assist- historically been a sick system haven’t hurt Lake Health’s market ed Lake Health with heart surgeries rather than a health system. You get position. for years. These sorts of relation- paid by providing services, and to Still, the threat posed by the gi- ships could help Lake Health stand Northern Ohio's Largest put it bluntly, the more you do, the ants lurks. on its own. more you make,” Campanella said. In late 2012, the Clinic bought 47 “When I hear about some of these Air Charter Service “You’re sort of going to be caught in acres in Mentor, which is in Lake relationships, as an economist, I Serving the area with 4 Beechjets and 2 Hawkers the middle during this transition, County. The land was rezoned to think that’s good because not every house a potential medical campus, • In-flight Wi-Fi Now Available • which will create some challenges hospital needs to be the best at for an organization.” but a Clinic spokeswoman said no everything,” said Mark Votruba, an www.FlySkyQuest.com • 216-362-9904 Without sharing specifics, Cicero definitive plans have been made as associate professor of economics at said Lake Health should be able to “planning for this property is long Case Western Reserve University. “I improve its operating margin by range.” In October 2012, the Clinic think it could work.” 20140303-NEWS--7-NAT-CCI-CL_-- 2/28/2014 10:28 AM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014 Dots: At time of bankruptcy filing, company had 3,500 employees continued from PAGE 1 regional and district managers last tail chain in 1987, were unsuccessful. $10,000, let alone six figures,” he said. leases in good locations and with “I feel bad about it,” Glenwillow week, and they received no sever- Although he couldn’t say for “Every dollar is important to us. advantageous terms, such as lower Mayor Mark A. Cegelka said last ance or vacation pay. sure, Glenwillow Mayor Cegelka “Obviously, it’s hypothetical at market rents, Myers said. Thursday, Feb. 27. That’s the date a An assistant manager calling from said probably 130 to 150 people this point,” Pickana continued. If Dots’ team fails to find buyers U.S. Bankruptcy Court judge in the Indianapolis area reported last were working recently at Dots’ “We’ve received word from Glen- for its remaining leases, the proper- New Jersey approved the sale of Friday that company officials held a Glenwillow headquarters. That’s willow that they’re pretty confident ties would revert back to their land- Dots’ inventory to a division of Gor- conference call Thursday and ex- down from 200 because after that the building itself, we’ll be able lords. don Brothers Group that now will plained to employees that liquida- Rhodes was hired in August 2012, to find a suitable tenant to replace George J. Pofok, senior vice pres- liquidate Dots’ stores. tors would take over Dots. he said Dots moved dozens of jobs (Dots).” ident of Cresco Real Estate in Inde- “It was a thriving company a few “I’m just a mess just as everyone from Glenwillow to New York. Pickana said it’s possible, de- pendence, tweeted last week that years ago,” Cegelka said. “I feel bad else is,” the assistant manager said. “That was a little alarming,” pending on who moves in, that the he hoped the judge in the Bank- for the employees that are there. “For the past month … they were Cegelka said. payroll and the income tax paid ruptcy Court in New Jersey would They’re local people who worked telling us there were other retailers could rise. not approve the sale to Gordon hard. They counted on this … and interested, potential investors in- Brothers Group’s retail division. all of a sudden, their world is terested. They never really brought Void that needs filling “Landlords are going to have va- turned upside down.” up liquidators. Officials with Glenwillow and ‘We were family’ cant storefronts, and when you At the time of the bankruptcy fil- “They pretty much apologized, Solon City Schools are monitoring According to Kenneth A. Rosen, have vacant storefronts, you have ing, Dots employed 3,500 people in and (said) the only way that we’re closely the future occupancy of the an attorney for Dots, the debtor’s less traffic visiting the center and about 400 stores in 28 states. getting our severance packages is if 193,000-square-foot property in team has found a buyer for more that has a secondary impact on co- One former employee who we stay through the liquidation,” the Glenwillow, which has been Dots’ than 100 Dots store leases, which tenants in each of the centers that worked at the Glenwillow head- assistant manager said. “I’m staying headquarters and distribution cen- an unidentified retailer acquiring Dots occupies,” Pofok said in an in- quarters said in a telephone inter- with the company through the liqui- ter since 2009. An agreement be- the leases will reopen in its name. terview last Friday. view last Friday, Feb. 28, that Dots dation. What choice do I have? Retail tween the two that stems from a It’s also seeking buyers for the re- “You can guarantee a lot of them employees who were let go last jobs aren’t easy to get into, especial- real estate tax abatement has pro- maining store leases, plus the lease are nervous right now,” Pofok said. week are “devastated” — and an- ly when you’re in management. vided that the village and the for the building in Glenwillow. “It will definitely have a significant gry. We’re all kind of screwed.” school district share the income “I suspect that we may not have impact on cash flows, and they’re go- “They’re mad,” said the former taxes paid by Dots. suitors for 100% of them, but we ing to be scrambling to try to backfill employee, who asked not to be While Cegelka declined to share will try our best,” Rosen wrote in an them (the locations) if they can. identified because of a nondisclo- An early warning sign the village’s most recent portion of email. “As is typical, some of the “A secondary effect is the loss of sure agreement. “Bob Glick ran that The assistant manager from In- that revenue, he said Dots has had leases are below market, some are jobs,” Pofok added. “That definite- company for 30 years debt-free, dianapolis said company execu- one of the 10 largest payrolls in the at market and some probably are ly is going to have an impact on lo- and he was a wonderful, wonderful tives said some stores will close im- village. If the village loses revenue above market.” cal economies.” person to work for. We all feel that mediately, and merchandise will be the size it received last year from Cegelka said the property owner During a conversation with a re- she (Lisa Rhodes, the CEO who left sent to higher-traffic stores to be Dots, it might need to put off some of the headquarters and distribu- porter about closures, job losses the company in February) and IPC sold. road and/or sewer projects, the tion center, whom he identified as and no severance and vacation pay, (Irving Place Capital) just literally However, Boston-based Gordon mayor said. Premier Development, said there this story’s first unidentified source tanked it.” Brothers Group, the firm with the “Any loss of income tax of that should be “big interest” in the — the former headquarters em- Irving Place Capital is the private division that is overseeing the go- magnitude is significant, but it’s building, given that it’s fairly new ployee — still emphasized that equity firm that acquired Dots in ing-out-of-business sales, indicat- not something we can’t overcome and in good condition. people “loved working for Dots.” January 2011 and divulged six ed merchandise will be sold at dis- by managing our budget,” he said. Local commercial real estate in- “We were family,” the source months later, with then-CEO Rick counts beginning at 20% “in all Tim Pickana, treasurer of Solon siders share that confidence. said. “We all helped each other. He Bunka, plans to grow the chain to locations” and that stores will re- City Schools, said much the same. “It’s better positioned in this (Bob Glick) was very fair to us. You 1,000 stores. Irving Place said in a main open until all merchandise Although the income tax revenue market,” said Jim Myers, a manag- worked there because you loved to statement last Friday that “IPC did has been sold. Store furniture, remitted to the district was more ing director who specializes in real work there and you believed in the everything possible to support the equipment and fixtures also will be than $120,000 in 2013, the building estate-related matters for Ingle- company. company.” sold, according to a news release. owner could find a new tenant wood Associates LLC, a turnaround “We lose another family-started, According to the aforementioned As of Friday, Dots’ website was quickly or payroll growth at other and business improvement adviso- family-owned, phenomenal com- source, who was terminated with down, and its customer service line companies could offset the loss, ry firm. “It’s not an old warehouse.” pany,” the source added, speaking severance pay the day Dots filed for rang busy. Attempts to reach Bob Pickana said. Dots’ sale of 100-plus leases is a of the impact to Northeast Ohio. Chapter 11, the company let go Dots Glick, who founded the discount re- “We don’t like to lose $5,000, likely indication that it possesses “It’s devastating to all of us.” ■ BUSINESS Building our bank one quality relationship at a time

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MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Ohio City location will help Mitchell’s serve more scoops

fter two and half years of the ground is up for grabs. Lemon effort, Mike and Pete verbena, elderberries, fresh corian- Mitchell are closing in on der seeds or melons … We’re going opening their flagship ice to have a lot of fun this year,” Mike creamA operation in Cleveland’s said. Ohio City neighborhood. He gave Crain’s an inside scoop on the 13,325-square-foot headquarters; below are some of the KATHYAMESCARR highlights:

Kitchen on full display Glass windows located both behind the first-floor ice cream dis-

play and on the second floor allow KATHY CARR PHOTOS customers to watch all facets of ice cream production, from sauce mak- Above, the WHAT’S COOKING ing and herb steeping to baking. marquee outside the new Ohio CIty Multi-purpose rooms storefront. At left, Located at 1867 W. 25th St. in the A separate first-floor room with a ice cream display Rialto Theatre Building, once the front seat to West 25th Street is ide- cases are installed West Side’s largest cinema and al for birthday parties or meetings. and waiting to be vaudeville venue, the new home of The larger open second floor with filled. Mitchell’s Homemade Ice Cream views of West 25th Street could will serve as an interactive retail serve as a corporate meeting space shop, a test site for flavor research (who wouldn’t want to conduct a and development and a production lunch meeting over ice cream?) or, center. when not reserved, may function as “We’ll have the ability to triple additional customer seating. our ice cream production,” said Mike Mitchell, co-owner of the Gathering place company with his brother Pete. An exposed brick alley along the Twenty Years of Moving Mitchell’s to Ohio City side between Mitchell’s and SoHo also builds upon the neighbor- restaurant will transform as out- hood’s evolution as a live-work-play door seating and open community destination. space. The Mitchells are working “We see this as a great addition to with LAND Studio, a Cleveland- BASEBALL AT GATEWAY Ohio City because it engages people based nonprofit that specializes in of any age, from the families who public space design, to develop a live here, to the young professionals landscape plan that incorporates who work here, and anyone who water sculptures and public art. comes to drink the craft beer,” Mike Two decades ago, the Cleveland Indians took up residence at Jacobs (now said. Sustainability features A mix of state and federal historic Skylights provide natural light, Progressive) Field. We’ll look back at what those years have meant for the tax credits are financing nearly half and solar panels cover half the roof, team and the city, and we’ll look ahead at what may be to come. the project’s cost, which Mike is which Mike said will provide “a keeping under wraps; the brothers good portion” of the building’s elec- also secured a new markets tax tricity. A rainwater harvesting sys- credit loan through Cleveland- tem will capture melted rain and based KeyBank. snow into an outdoor cistern. The The new headquarters will allow water then will be pumped into the the brothers to shift production basement, filtered and reused as from the company’s cramped potable water. “The building will Ad close: Rocky River kitchen. It also will give shed almost no storm water,” Mike them more space for new flavor ex- said. March 13 perimentation. Some of those fla- The Mitchells anticipate a late- vors, which are still in the works, March grand opening. will be offered only in the shop on After their eighth store comes on- West 25th. line, the Mitchells will employ “We’re still working on it, but let’s about 270, the majority of whom are just say anything that grows from part time. ■ Issue date: Materials due: March 24 March 18 Local morsels ...

Chefs Doug Katz (Fire, Food and honored to be nominated by The Drink, Katz Club Diner) and James Beard Foundation for this Jonathon Sawyer (Greenhouse Tav- prestigious award. After 13 amazing ern, Noodlecat) are semifinalists in years, Fire continuous to receive ac- the James Beard Foundation award colades, and it is due to the hard category for best chef, Great Lakes. work and passion that my staff ex- Nominees will be announced Tues- hibits each day.” Fingers crossed day, March 18, and winners will be one of these fine chefs brings home revealed May 2 and May 5 in New the bacon. York City. “It’s very exciting to be a part of Iron chef Michael Symon for the such a great community,” Sawyer fourth straight year took top honors said in an email. “Being a part of the at the recent South Beach Food & James Beard Foundation has been a Wine Festival’s Burger Bash in Mi- rewarding experience for me. The ami. The Fat Doug, which has nomination is humbling and very coleslaw, pastrami, Castello-aged For more information and to advertise, contact Nicole Mastrangelo at 216-771-5158 or much appreciated.” Havarti cheese and Stadium Mus- [email protected]. Katz, via email, said: “I am truly tard, was the winner. 20140303-NEWS--10-NAT-CCI-CL_-- 2/27/2014 4:25 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014

PUBLISHER/EDITORIAL DIRECTOR: John Campanelli ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Enough ohn Kasich is a persistent fellow. The governor is pushing for yet another income tax cut, with the reduction in revenue to the state offset by J an increase in Ohio’s severance tax on oil and gas producton. Enough already. Bringing down income taxes to reduce the top rate below 5%, as Kasich wants, creates a limted tax benefit to those who earn a bit more than $200,000 a year. Instead, the state should deliver an economic punch with the new revenue from any severance tax FROM THE PUBLISHER increase by investing it in one of two ways: 1.) Put the money into streets, highways, bridges, sewers and other infrastructure that badly needs re- pair or replacement so that Ohio can keep the God’s got this entrepreneur’s back wheels of commerce moving, or 2.) Dedicate the dollars to implementing a plan laude Booker is going JOHN soldiers). The boil-in-bag de- be ecstatic. I’m just excited they’re com- Kasich outlined last week in his State of the State to lose about $500,000 CAMPANELLI sign makes it the perfect pack- ing home. address to extend technical and vocational educa- in revenue. aging for field stoves. “I guess I just don’t think God will “The thing with feeding the honor me being greedy and wanting tion to students as early as the seventh grade. CAnd he’s happy about it. Re- troops, it’s all morale,” he them to stay.” It isn’t as though the state has been neglecting its ally. says. “Soldiers eat pretty Amen. highest income-earners over the last decade when it “It’s a good thing,” he says, good.” Booker is working to replace the loss. comes to bringing down individual income tax rates. with complete sincerity. Booker, 45, travels a lot and He recently inked a contract with the Ohio’s income tax rates have been falling gradual- Booker is a former corpo- when he sees a service mem- state to provide macaroni and cheese to ly since 2005. That’s when former Gov. Bob Taft rate chef, food sales exec and ber in an airport, he makes a Ohio’s schoolchildren. He’s also unveil- convinced the 126th General Assembly to enact restaurant owner. He and his point to say hello. ing something called Sides to Go. House Bill 66, which scheduled five annual across- wife started Simply Southern “You don’t know where “Convenience stores aren’t making any the-board income tax rate reductions of 4.2%. Sides in the kitchen of their they’re going,” he says. “If I’m money on gasoline anymore,” he says. sitting next to one, I’ll say, ‘You know, “There are no margins there. And they By tax year 2008, income tax rates were 16.8% low- home in Northfield in 2007. The business provides fully cooked top- I’m proud to be serving collard greens to used to make pretty decent margins on er than they had been in 2004, the year before HB 66 shelf side dishes — mac and cheese, sweet you guys.’” cigarettes, but that’s not there anymore. was enacted. Because of the severe recession, which potato casserole and dozens more — in He’s feeding the troops in The growth in food service is 30 or 40%.” whacked state income tax revenue, the Legislature easy-to-prepare boil bags. Drop a frozen Afghanistan, so as the U.S. draws down According to Booker, more than 800 postponed the fifth and final year of the Taft tax cuts 3-pound bag of black-eyed peas into boil- by the end of 2014, the side dishes will million rotisserie chickens are sold an- until tax year 2011. But last year, Kasich and the Leg- ing water and a few minutes later you can draw down, too. He expects to lose a nually in the U.S., and they deserve side islature picked up where their predecessors left off. stock your cafeteria or buffet with a deli- half-million in revenue. dishes to go with them. His Sides to Go Last summer, the Legislature approved a two-year cious, authentic Southern side dish. No matter how deep your patriotism, concept will allow convenience stores to budget that delivers $2.7 billion in tax cuts to indi- Booker’s veggies and side dishes are in no business owner in his position could sell his creamed corn, mashed potatoes schools, grocery stores and cafeterias take that kind of hit to sales without feel- and more with minimal effort. viduals and businesses over the next three years. throughout the South. He’s seen revenue ing a bit of disappointment, right? Hearing his ideas and excitement, it’s Those reductions include a 10% personal income grow from $75,000 to more than $4 mil- When I asked Booker that, he set me tough not to be bullish on Booker, even tax cut phased in through tax year 2015. lion. straight. with the hit to revenue. By tax year 2013, the top individual tax rate al- One of his best customers has been “Can you imagine how those parents “I’ve got a saying, ‘God will guide us.’ ready had fallen to 5.421% from 7.185% in tax year the military. The troops love his food are going to feel when all their sons and I already know that I’m going to replace 2005 — a 24.5% drop. By contrast, the state sales tax (menus are created using taste tests by daughters are home? They are going to it,” he says. “He’s got my back.” ■ — a regressive tax that impacts people of limited means far more than the wealthy — was increased last year by the Legislature to 5.75% from 5.5% to TALK ON THE WEB help cover the cost of the latest income tax cuts. The point is that one person’s tax cut becomes Re: State of the state Reader responses to stories POLL POSITIONS another person’s tax hike because the state needs ■ I think John Kasich did a good job for and blogs that appeared on: revenue to operate and will come up with ways to Ohioans while he was in the House of www.crainscleveland.com Would Cleveland be a good obtain it. It’s why there are video lottery terminals Representative, and I think he is doing a choice to host a major national — aka slot machines — at horse race tracks across fine job as governor of Ohio. He got off to political convention in 2016? yesterday’s issue. If I didn’t love the re- a shaky start by overestimating what the state; Kasich and lawmakers bypassed voters porting, I would have given up on this Absolutely. Either party would be happy could be done in the public sector, but and authorized the betting devices under the Ohio long ago. — Jeff Desmond here. Lottery, which gets a cut of the action. Their use is his efforts have been very good since. — James Anderson 73.0% like an unvoted tax on the low- and middle-income ■ The key is to do stories that matter, not Ohioans who are the biggest players of the slots. Re: Plain Dealer’s blather that doesn’t. In the digital age, Rather than play Santa Claus with revenue from a the key is to utilize the technology effec- Maybe. Hotel rooms still are an issue. digital-first strategy tively for your reporting, something vir- severance tax hike, elected officials should use it in 11.2% one of the ways we recommend above. They also ■ It is hard for your digital-first strategy tually no newspaper in the country does. — Karl Idsvoog should direct a slice of the money toward address- to be effective when your Android app ■ The digital-first strategy may have a No. And who needs the hassle? ing the environmental danger posed by old, capped for mobile devices to view your “digital- first” content is absolute garbage. business case behind it, but execution of vertical natural gas wells throughout Ohio. It would Seriously, PD, take a look at your more the plan leaves readers confused about 15.7% be a fitting use of tax dollars generated by Ohio’s than 100 reviews, averaging 1.5 out of 5 the strength of the paper’s commitment emerging shale energy industry. stars! The app only periodically loads, to content. Vote in the poll each week at cuts out frequently and often brings up See WEB Page 11 CrainsCleveland.com 20140303-NEWS--11-NAT-CCI-CL_-- 2/27/2014 2:33 PM Page 1

MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

LETTER Put Your Best (Square) Foot Forward. Power 150 needs marketing jolt

was delighted to see so many the messages. We help build the of our area’s leaders included WRITE TO US support and bring voters to the on your Power 150 list in the Send your letters to: Mark Dodosh, polls. Feb. 16 issue, and congrats to editor, Crain’s Cleveland Business, Maybe we’ve been too busy Imy colleagues Jason Therrien of 700 W. St. Clair Ave., Suite 310, telling other’s stories and not thunder::tech and Joe Pulizzi of the Cleveland, OH 44113-1230 spending enough time doing that Content Marketing Institute for Email: [email protected] about ourselves. We hope many making the list. Frankly, I found it more of us are included in future appalling that this list did not in- upon to design, produce and imple- lists. clude any other leaders of this re- ment the business, civic and non- Tony Weber gion’s marketing, communications, profit public engagement projects President public relations, digital, visual me- that lead to successful new initia- American Advertising Federation dia and advertising firms. tives. We help connect the commu- — Cleveland It is the creative communications nity to the needs, the projects and CEO professionals who often are called the vision. We clarify and crystallize Goldfarb Weber Creative Media

Interested in leasing the best views in Cleveland? 1301 E. Ninth St. Web: Contact: David C. Wagner - 216.360.0009 Where are PD’s in-depth stories? Cleveland, OH HannaChartwell.com continued from PAGE 10 sympathy, since the workload ap- its inception. This private company The Android tablet version of the pears tremendous. As an ex-maga- doesn’t even invest in startups. They paper is a poorly functioning piece zine editor, I couldn’t imagine just decide which VC firms get a of software. It is so badly coded that putting that many words out in so piece of the money. some functions don’t work at all short a time. Of course, my work If anyone understood how ineffec- Where Is Archer? and others are subject to fits and had to be right! — 174027 tive the first $130 million of the Ohio starts. Capital Fund was, they would never As for the paper’s content, more ■ If the digital strategy were so suggest extending it. After a short leave of absence he’s back! “ink” is spilled on sports than on the good, wonderful, spectacular, — Askhardquestions Guess where Archer has been over the past front page or metro sections. sought after, in-demand, requested — Daniel Yurman and wished for, then all of the major Re: Sin tax campaign year and win two tickets to Crain’s Archer papers across this land would be ■ At the very least, we should de- Awards, which honors the best in NEO’s ■ I miss the ability to quickly scan falling all over themselves to go this mand some quid pro quo from the human resources community. the front page of an old-fashioned route, but they are not. sports teams before throwing away newspaper to see stories of possible We are being told it is a superior so much more money on them. Presented by: interests. However, the “home” product, but that is an insult to in- How about making them extend pages for Metro, Local, News, Inter- formed readers. The PD is now an their leases another 25 years, or national, etc., on the website don’t inferior product. Someone needs to putting the money in escrow and offer even that simple task. clean house with that editorial staff paying them only in years when they Achievements in Finding actual news seems even already. Doesn’t corporate monitor Human Resources produce a winning season? difficult; I actually have found more what is going with that editorial Instead, we are being rushed into Northeast Ohio news by going to a board??? — Jim Daniloff this vote. I will vote no. CrainsCleveland.com/WhereIsArcher Cincinnati newspaper website. — Robert Fritz I hate the noise of unrelated, sen- Re: New trade sationalist news headlines, the association VentureOhio “cherry-picked” but uninteresting crime stories, and, yes, the advertis- ■ Of course this group wants the ing. Ohio Capital Fund extended, be- I am also annoyed by the lack of cause they all will be asking for a in-depth story background, verifi- piece of it. cation of facts before going to I hope someone does a real inves- “print,” and the fact that the article tigative piece on how the first $130 you read at 8:30 a.m. is quite million of the Ohio Capital Fund changed from the one that is avail- was spent. The private group that able at 3 p.m. decides which VC funds get a share Having sat next to one reporter at of the money has taken over $10 several city meetings, I do feel some million in administrative fees since 20140303-NEWS--12-NAT-CCI-CL_-- 2/27/2014 2:35 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014

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MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 Risk International Changes afloat at ABSMaterials By CHUCK SODER closed on a $4 million investment business purposes it just had to be experiences growth [email protected] led by RKS Ventures of Nashua, done,” he said. N.H. The investment firm had a re- ABSMaterials, with the equiva- ABSMaterials isn’t the same lationship with Hewes: One of RKS lent of 32 full-time employees to- company it was in mid-2013. Ventures’ portfolio companies is day, will benefit if the combined on multiple fronts The highly touted developer of ARC Energy, which makes furnaces Produced Water Absorbents-ProS- water purification technology has a used to grow sapphire crystals that ep succeeds. The Wooster-based new CEO, a new investor and one go into LED lights and other prod- business owns roughly 20% of the Firm has seen increase in staff numbers, less subsidiary. ucts. combined company, which has The Wooster-based company in about 100 employees, most of offices and revenue, plus new acquisition January hired interim CEO Hap whom worked for ProSep, accord- Hewes to replace Stephen Spoon- Year of change ing to Schwarz. He became a share- By MICHELLE PARK LAZETTE stead, they guide clients to under- amore, who now serves as senior ABSMaterials’ sales are growing; holder in both ABSMaterials and [email protected] stand how their cost of risk — which vice president of business develop- the 5-year-old company posted a Produced Water Absorbents-ProS- includes premiums, broker fees, ment. profit in the third quarter of 2013 ep through a group of local individ- Risk International Services Inc. in self-insured losses and administra- However, Hewes also will contin- and nearly did so again in the ual investors called the North Coast Fairlawn has closed the acquisition tive costs — compares to that of ue serving as an executive at crystal fourth quarter, Spoonamore said. Angel Fund, which invested in AB- of another risk management firm, their peers, and work to improve it. technology company ARC Energy In a way, however, the business SMaterials in 2010. but that’s not nearly the beginning They also help clients buy insur- in Nashua, N.H., while ABSMateri- shrank late last year, when a com- ABSMaterials also counts the of its recent growth. ance through brokers. als hunts for a permanent CEO with pany that had been a subsidiary combined company as one of its Even before Risk International’s “What we do is step into the expertise in the specialty chemicals split off and moved to Houston, biggest customers. Spoonamore deal for Consolidated Risk Manage- clients’ shoes and become their de- industry, said Spoonamore, who taking its employees with it. said ABSMaterials provided more ment in Cleveland wrapped up Feb. partment,” Davis said. “It takes it off founded the company with chief Produced Water Absorbents Inc., than $1 million in products and lab- oratory work to Produced Water 1, Risk International’s number of of their plate so they can focus on science officer Paul Edmiston. the former subsidiary, spent $9.2 Absorbents in 2013, and that figure employees had roughly doubled their core business.” Spoonamore admits he isn’t that million last November to buy oil could rise substantially: The com- compared to two years ago, accord- guy. He said he’d rather focus on and gas technology company ProS- bined company has asked ABSMa- ing to Michael Davis, president and expanding the company’s sales ep Inc. of Houston. Produced Water terials to come up with a plan that CEO. Hop on the train force and managing partnerships Absorbents, which uses Osorb to would allow it to triple the amount with its distributors. treat water produced during the oil Prior to the acquisition, which is Much to the pleasant surprise of of Osorb it makes for the Houston ABSMaterials already has “inter- the first since the company’s found- Risk International executives, in- and gas drilling process, had the company within four months, in ing in 1986, Risk Interna- cluding Dave O’Brien, viewed several great candidates,” equivalent of 16 full-time employ- case one of its major pilot projects tional employed 51, up chairman and former pres- Spoonamore said. It’s looking for ees when it was part of ABSMateri- is scaled up. from 26 in early 2012. It is ident of Cleveland insur- someone who can manage the sup- als. Many moved to Houston with While the Houston company pur- growth that spurred the re- ance broker Oswald Cos., pliers that provide the ultrapure the acquisition, and none remain in sues the oil and gas market, ABSMa- cent addition of 16 work private equity firms appear materials that go into ABSMaterials’ Northeast Ohio, Spoonamore said. terials is going after companies that stations where a large file particularly hungry for products, which are based on a The acquisition of ProSep is in- could use Osorb for other purposes, room used to be. what Risk International is technology called Osorb that Ed- tended to help Produced Water Ab- such as treating stormwater, pro- In addition, the firm over selling. miston invented. The U.S. Depart- sorbents access more geographical tecting groundwater and cleaning the last two years has That’s because private ment of Energy has described the markets and offer a broader lineup up fuel spills. It’s even pursuing the glass-like material as a “break- opened offices in Colum- equity firms want to man- of products for separating oil, water makeup market: A high-end cos- through” technology for removing and gas. The company’s Wooster bus; Wilmington, Del.; Mid- Davis age risk for their portfolio metics company is looking to launch hydrocarbons from water. operations moved to Houston be- land, Mich.; and Washing- companies without adding a product containing Osorb, which “What shows up at the back dock cause that’s where many of its cus- ton, D.C., bringing its total to eight headcount, Davis said. can be engineered to absorb oils is really what drives what goes out tomers are based, according to before the acquisition. Risk International’s growth has from skin or hair, while releasing a to our customers,” he said. Richard Schwarz, chairman of Pro- pleasant aroma. The product could And, Davis said, revenues are up, exceeded the expectations Davis Hewes was hired two months af- duced Water Absorbents-ProSep. end up in Sephora and other stores though he wouldn’t reveal actual said he had when his company ter ABSMaterials announced it had “We were sad to do it, but for next year, Spoonamore said. ■ figures. brought O’Brien aboard in early In 2013, they were 70% higher 2012 to grow Risk International’s than in 2012, and Davis said Risk In- brand. ternational is on track this year to “I would have been happy with do 50% more than it did in 2013, 15%, 20% growth in the last two even without the acquisition. years, and … we’ve doubled,” he Now, with the addition of said. Michael Cristal, president and CEO “The evidence (of increased of Consolidated Risk Management, brand awareness) I have is compa- and his team, Risk International nies are now calling us, which did- Dollar Bank welcomes employs 56. n’t happen before. We had to strike The deal also adds a Cleveland of- up the relationship and pursue fice and about 30 clients to Risk In- them. Now, we’re getting calls, re- Brian Tucker ternational’s 50-some clients. sponding to requests for informa- Terms of the deal weren’t disclosed. tion about who we are.” “Our growth has come almost en- Introduced about two years ago, Vice President and tirely through this risk management Davis and Cristal struck up serious practice,” Davis said, noting that its conversations about a combination Director of Corporate Affairs number of risk management clients roughly six months ago, said Cristal, has tripled in the past two years. who cited concern about his firm’s “Companies are more and more in- lack of a succession plan for decid- terested in using an outsourced ser- ing to sell his business. With 35 years of business experience as a journalist, vice provider to handle their risk Plus, he said, when the two col- management and insurance. We al- laborated recently on a few projects publisher and editorial director at Crain’s Cleveland ways knew there was a market in and presentations, the expertise of Business and the Associated Press, we are excited the middle-market area. Michael Risk International’s people was gets us there in one step.” clear. to add Brian’s talent to Dollar Bank’s corporate and Risk International gains from “The number of tools that they Consolidated Risk Management in- have to offer to their clients gives us private banking, community development and house expertise and relationships significantly broader bench needed to serve family offices and strength,” said Cristal, whose com- media relations initiatives. middle-market companies, defined pany was in business for more than by Cristal as those with $20 million 15 years. He is now an area vice to $750 million in annual revenues. president of Risk International. Risk International generally has While Davis said acquisitions are worked for public companies that not the driver of Risk International’s do $1 billion in annual revenue or strategy, they are one part. Indeed, more, but has seen demand for the firm has a letter of intent out middle-market work along the way, right now to acquire a firm in South Davis said. Carolina, he said. Both Risk International and Con- “This train isn’t going to slow solidated Risk Management make down,” Davis said. “We’re going to Equal Housing Lender. Member FDIC. their money advising clients on continue to grow rapidly. Bringing Copyright © 2014, Dollar Bank, Federal Savings Bank. BUS149_14 their total cost of risk. Their execu- Michael’s group on gives us a team tives stress they are not brokers. In- trained, ready, to take on more.” ■ 20140303-NEWS--14-NAT-CCI-CL_-- 2/27/2014 2:38 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014

TAX LIENS

Executive Search Firm The Internal Revenue Service filed tax Type: Employer’s withholding Terra Serra LLC Café Ah-Roma liens against the following businesses Amount: $31,907 38 W. Bridge St., Berea in the Cuyahoga County Recorder’s JW Auto ID: 34-1943631 Ownership Opportunity Office. The IRS files a tax lien to 16917 Euclid Ave., Cleveland Date filed: Jan. 22, 2014 protect the interests of the federal ID: 34-1934681 Type: Employer’s withholding government. The lien is a public Date filed: Jan. 8, 2014 Amount: $5,113 notice to creditors that the Succeed the Founder of this Type: Corporate income government has a claim against a Amount: $31,665 LIENS RELEASED 24 Year Old National Firm company’s property. Liens reported here are $5,000 and higher. Dates Accelerated Learning Clinic Inc. Boroski Auto Body Inc. Northeast Ohio location listed are the dates the documents 8043 Corporate Circle, Suite 1, 17399 Broadway Ave., Maple ¤ were filed in the Recorder’s Office. North Royalton Heights ¤ National retainer clients ID: 27-1018899 ID: 34-1755641 LIENS FILED Date filed: Jan. 21, 2014 Date filed: June 5, 2013 ¤ 16 person staff Type: Employer’s withholding Date released: Jan. 8, 2014 Rycor Industrial Inc. Amount: $23,448 Type: Employer’s withholding 5-10 years “C”suite and retainer 11500 Madison Ave., Cleveland Amount: $53,149 ID: 34-1346726 Pro Surplus Inc. experience essential. Date filed: Jan. 8, 2014 21425 Aurora Road, Bedford Insite Systems Inc. Type: Employer’s withholding, ID: 27-1803119 6777 Engle Road, Suite L, E-mail response with confidence- firm's personnel unemployment Date filed: Jan. 22, 2014 Middleburg Heights aware of this ad. Amount: $250,626 Type: Employer’s withholding ID: 34-1815203 Amount: $19,797 Date filed: March 4, 2005 Orion Painting and Contracting Date released: Jan. 8, 2014 [email protected] Inc. Quality Care Residential Homes Type: Employer’s withholding, 4160 Jennings Road, Cleveland Inc. unemployment ID: 34-1576783 9402 Rosewood Ave., Cleveland Amount: $138,346 Date filed: Jan. 8, 2014 ID: 75-3189085 Type: Employer’s withholding Date filed: Jan. 8, 2014 Johnnys Burgess Grand Corp. Amount: $106,398 Type: Employer’s withholding, Inc. unemployment 1406 West Sixth St., Cleveland Comfort Wear Inc. Amount: $19,693 ID: 34-1737006 2261 Warrensville Center Road, Date filed: March 2, 2011 University Heights Plain Dealer Publishing Corp. Date released: Jan. 29, 2014 ID: 31-1502585 1801 Superior Ave. E, Cleveland Type: Employer’s withholding Date filed: Jan.8, 2014 ID: 34-0228575 Amount: $66,950 Type: Employer’s withholding, Date filed: Jan. 22, 2014 unemployment, failure to file Type: Employer’s withholding Johnnys Burgess Grand Corp. complete return, corporate income Amount: $17,294 Inc. Amount: $83,362 1406 West Sixth St., Cleveland Terra Serra LLC Café Ah-Roma ID: 34-1737006 R & L Metal Spinning Inc. 38 W. Bridge St., Berea Date filed: April 25, 2013 3175 W. 33 St., Cleveland ID: 34-1943631 Date released: Jan. 31, 2014 ID: 30-0511181 Date filed: Jan. 8, 2014 Type: Employer’s withholding Date filed: Jan. 8, 2014 Type: Employer’s withholding, Amount: $5,346 Type: Employer’s withholding unemployment Amount: $70,643 Amount: $14,919 Market One Communications LLC 23945 Mercantile Road, Suite D., Lakewood Pizza Inc. Child Care Catering Services Inc. Beachwood 16210 Detroit Ave., Lakewood 42 Harrison St., Bedford ID: 30-0008369 ID: 20-1130641 ID: 27-1217254 Date filed: Dec. 30, 2013 Pentesting Date filed: Jan. 8, 2014 Date filed: Jan. 8, 2014 Date released: Jan. 22, 2014 Type: Employer’s withholding, Type: Employer’s withholding Type: Employer’s withholding, unemployment, corporate income Amount: $13,183 unemployment Amount: $69,560 Ashraf International Inc. Amount: $9,118 BMCH Inc. 1136 Rutherford Road, Cleveland Michael & Sons Landscaping Inc. 6100 Rockside Woods Blvd., Suite Heights P.O. Box 26133, Fairview Park 350, Independence ID: 34-10602566 ID: 34-1507239 ID: 38-3835243 Date filed: Jan. 22, 2014 Date filed: May 31, 2012 Date filed: Jan. 21, 2014 Type: Employer’s withholding Date released: Jan. 8, 2014 Type: Employer’s withholding, Amount: $12,465 Type: Employer’s withholding unemployment Amount: $11,680 Amount: $56,065 Legacy Landscape Co. 5996 Louis Drive, North Olmsted Nusurge Electric Inc. Elevated Sales Inc. ID: 83-0600651 8100 Grand Ave., Suite 700, 6000 Lombardo Center, Suite 635, Date filed: Jan. 21, 2014 Cleveland Seven Hills Type: Employer’s withholding ID: 20-8759090 ID: 27-2575415 Amount: $9,628 Date filed: Oct. 1, 2013 Date filed: Jan. 21, 2014 Date released: Jan. 8, 2014 M A Infinity Marketing Inc. Type: Employer’s withholding, Type: Employer’s withholding, 6403 Sylvia Drive, Brookpark unemployment unemployment ID: 27-0117781 Amount: $52,346 Amount: $275,767 Crain’s Manufacturing E-Newsletter Date filed: Jan. 21, 2014 Post Painting Inc. Type: Employer’s withholding Open Pitt-Bar-B-Que Inc. 24816 Aurora Road, Bedford Heights Amount: $9,344 12335 Saint Clair Ave., Cleveland Stay up-to-date on the latest news and analysis in ID: 34-1700614 ID: 34-1765846 Date filed: Jan. 8, 2014 Four Star Contractors Inc. Date filed: March 4, 2009 manufacturing by signing up for the newest e-newsletter Type: Employer’s withholding 9842 Webster Road, Strongsville Date released: Jan. 8, 2014 from Crain’s Cleveland Business. Amount: $39,424 ID: 34-1826974 Type: Employer’s withholding, Date filed: Jan. 8, 2014 unemployment, failure to file National Fasteners Inc. Type: Employer’s withholding, failure complete return, corporate income 4581 Spring Road, Independence to file complete return Amount: $32,318 Do you have a lead or story that ID: 27-0985453 Amount: $7,332 Date filed: Jan. 22, 2014 Premium Technical Services Inc. you’d like to see included in the Type: Employer’s withholding, Sharontonynicolette LLC 26215 Cambridge Lane 6-103, unemployment 26091 Broadway Ave., Oakwood Cleveland Crain’s Manufacturing E-Newsletter? Amount: $38,757 Village ID: 34-1743417 ID: 20-8893858 Date filed: Oct. 12, 2005 Quality Data Management Inc. Date filed: Jan. 8, 2014 Date released: Jan. 21, 2014 P.O. Box 470417, Broadview Heights Type: Employer’s withholding, Type: Corporate income Contact Crain’s manufacturing reporter Rachel Abbey McCafferty ID: 34-1839449 unemployment, corporate income Amount: $12,326 at [email protected] or 216-771-5379 Date filed: Jan. 22, 2014 Amount: $6,543 Type: Employer’s withholding Rybak & Associates Inc. Amount: $38,177 Ridgewood Preschool Inc. 21821 Libby Road, Suite 102, Sponsored by 4550 W. Ridgewood Drive, Parma Bedford Womens Professional Services ID: 34-1441380 ID: 03-0514289 Corp. Date filed: Jan. 21, 2014 Date filed: Oct. 20, 2011 Bi-weekly beginning this spring 27991 Center Ridge Road, Westlake Type: Employer’s withholding, Date released: Jan. 8, 2014 ID: 46-0922239 unemployment Type: Employer’s withholding Date filed: Jan. 22, 2014 Amount: $5,751 Amount: $18,477 20140303-NEWS--15-NAT-CCI-CL_-- 2/27/2014 2:16 PM Page 1

MARCH 3 - 9, 2014 CRAIN’S CLEVELAND BUSINESS 15

INSIDE 18 SOME BUSINESSES PREFER TO INVEST IN THEIR SPACES. REAL ESTATE Buyers are finding own home sites Locations facing shortage of lots in subdivisions see scattered building By STAN BULLARD [email protected]

orkers from Wayne Homes are putting the final touches on a new three-bedroom home inW Medina County’s York Township for Stan and Linda Duplaga. The couple found the Station Road site in a quest to rightsize as they hit their 50s. Their original home on 20 acres in Grafton had gotten too big. A Brunswick subdi- vision with their next house was too ritzy for their taste. Now they are excited about getting into the new split level surrounded by three acres of woods.

INSIDE: Cuyahoga Land Bank is keeping (very) busy. Page 19 JANET CENTURY PHOTOS The 5th Street Arcades Retail Development Grant Competition has attracted small businesses to the historic arcades between Euclid and Prospect avenues. As home building gains steam after the downturn, more buyers are turning to finding their own lots and bringing their own builder to construct their dream home. The phenomenon is cropping up in un- ARCADES PICK UP PACE expected locations from Bay Village to Shaker Heights and Wadsworth Prospect avenues. as well as more typical areas for Program has added A finalist in the grant competi- new home construction in outlying tion, Farrell became one of nearly counties. almost two dozen two dozen new retailers — many Ironically, a driving force behind of them young startups — to hang the scramble for scattered sites is a retailers, and much shingles at the architectural gem developing shortage of home sites since September 2012 when Pace in subdivisions as land acquisition buzz, to historic spot took over the master lease of the and development loans remain By CHRISSY KADLECK nearly 70,000 square feet of retail tough for builders to get. Reinvigo- [email protected] space. rated activity is consuming sites Desolate for decades, occupan- that sat fallow a decade. Al Scott, a t was never part of Mary Far- cy at the former Colonial Market- veteran land developer and princi- rell’s business plan to open a place was about 50% when Pace pal in the Garfield Heights-based brick-and-mortar store. As in, took over. Devoted to developing NRP Group multifamily firm, puts it it was the last thing she want- tech startup and incubator spaces simply. Ied to do. in the city, Pace, also an architect, “In areas such as Mentor, Her Cherub’s Blanket line of or- said he was drawn to the project Strongsville and Westlake we face a ganic cotton and natural baby because he “loved the buildings.” shortage of lots,” Scott said. items was thriving as a mobile and “Now out of 45 spaces, we’ve “Builders can’t get the loans to de- online business, and she couldn’t got 44 leased,” he said. “I always velop the lot or the funds to build see the payoff of taking on the ex- say the buildings are beautiful but the house. However, buyers can get pense and work of manning a re- “I have never wanted to open up a store — never. But he they look a lot better when you’ve construction loans that convert to a tail space. Then the challenge-dri- was so captivating and I relish challenges ... Next thing I got people in them.” permanent loan after construction. ven entrepreneur met developer We’re seeing more and more buy- know, I am opening up Bright Green Gift Store.” ers buying the lots, and then hiring Dick Pace. Much-needed help Pace, president of Cumberland – Bright Green Gift Store owner Mary Farrell (above), the builder to construct their home. Development and master lease- on developer Dick Pace Pace has been successful at- As a result, there are a lot of buyers holder of 5th Street Arcades, won tracting new retail to the arcades out there looking for lots.” Farrell over during his pitch to her portunity to win some grant mon- Street Arcades Retail Development by using creative opportunities class at Bad Girl Ventures, an orga- ey and free rent and be part of the Grant Competition, a collabora- such as the grant competition, Opportunity knocks nization that supports female en- renovation of 5th Street Arcades,’” tion in early 2013 between Charter which netted the winners much- trepreneurs with micro-lending she said. “I have never wanted to One’s Growing Communities needed capital, free rent for six Buyers are also finding opportuni- and business development courses. open up a store — never. But he Initiative, the Downtown months and discounted rent for ties in established communities such “He was very likeable, very en- was so captivating and I relish Cleveland Alliance and the next six months. as Bay, Shaker and Westlake by ei- ergetic and I identified with him challenges … Next thing I know, I Cumberland Development. “They wouldn’t pay full-price ther finding lots left undeveloped, right away. He said, ‘If any of you am opening up Bright Green Gift The program’s aim is to attract rent until the second year, and for emptied by a fire, or tearing down Bad Girls want to open a store- Store.” small businesses to the historic a startup that is critical,” he said. old houses to create sites. front, this is going to be a great op- Pace was referencing the 5th arcades between Euclid and See ARCADES Page 17 See LOT Page 16 20140303-NEWS--16-NAT-CCI-CL_-- 2/27/2014 2:15 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS REAL ESTATE MARCH 3 - 9, 2014 Lot: Local builders are reporting sales increases of 15% or more continued from PAGE 15 site housing, particularly on Lake While working as a construction Road in Bay Village and Avon Lake manager for Zaremba Homes in where modest bungalows are giving Cleveland, Michael Sathre built his way to huge homes with lake views own home seven years ago on Wolf on a regular basis. Road near Columbia Road in Bay However, Tony DiBenedetto be- Village. lieves the movement to tear down Last year he launched his own older homes to yield new home company, Quality Select Homes sites is migrating south. LLC, to capitalize on the opportuni- “We’re going to see it increasing- ty he saw in buying foreclosed ly become a case of a small home homes on large lots and razing next to a big one like we see on Lake them for new home sites. He built a Road,” DiBenedetto said. house on the corner of Wolf and He sees quality school systems as Bradley last year and sold it in 30 the magnet for people to seek to days. This year, whenever the build in Bay, Westlake and Rocky weather breaks, he has a contract to River. build another 3,000-square-foot “Finding tear-downs is not easy,” home on the empty parcel next DiBenedetto said. “Your average door. Westlake tear-down will cost “In Bay, you can put in a new $115,000 to $200,000. Another house for about $300,000, and it’s $10,000 to $15,000 will be needed STAN BULLARD surrounded by well-kept homes for demolition.” Generally the fin- Michael Sathre, owner of Quality Select Homes LLC, has a contract to build a 3,000-square-foot home on this empty worth $200,000. It will still sell be- ished houses cost $400,000 to parcel in Bay Village. cause the values are stable,” Sathre $500,000, although lakefront homes Canton-based Schumacher Homes, up 20% last year over 2012 and wants a unique home design,” Mur- said. often cost more than $1 million. which has a model center in Akron. looks forward to another 15% gain phy said. Twenty years ago, buyers While Sathre’s company is new Their experience shows scattered this year. Wayne, which operates in of Wayne Homes were largely first- to the game, brothers David and Scattered site specialists site building’s resurgence. four states, built 600 homes last time home buyers who sought af- Tony DiBenedetto operate George Murphy, president of year. fordable homes. Now its market has DiBenedetto Fine Homes of North Although many volume builders Wayne Homes, which is in Green At Schumacher Homes, Mary shifted, Murphy said, so that move- Olmsted, which has been in busi- moved into custom and on-your- but has a Uniontown mailing ad- Becker, vice president of sales and up and custom home buyers ac- ness for 65 years. While they devel- lot building to stay busy in the dress, would not disclose actual marketing, said the company had a count for 80% of Wayne’s cus- op subdivisions to sell land to other downturn, there are specialists in sales results, but estimates both 15% increase in both dollar volume tomers. builders, they also work in scattered the category such as Wayne and unit sales and dollar volume were and sales in 2013, although she also wouldn’t release specific figures. She expects a similar rise this year. The good and the bad That shows increasing market While building on a scattered site share for scattered site builders. home has advantages, it is also chal- U.S. Census Bureau statistics show lenging. Becker notes that the com- single home starts rose 6% last year pany can tell its buyers how many to 2,705 homes from 2,536 in 2012 nails a house will use, but what is Our strength is in our numbers. in the combined Cleveland-Elyria- underground may be unpre- Mentor and Akron metropolitan dictable. We provide the building blocks to get commercial deals done: statistical areas. DiBenedetto said the nature of a About half of Schumacher’s buy- site can be difficult. “They want One of the area’s largest real estate practice groups ers have lots when they contact the unique lots,” he said. “They want Unmatched level of experience Breadth of services company, Becker said, and its staff bigger backyards and wider spaces can refer others to real estate agents between houses. They look for Depth of resources and landowners after determining ravines and creeks. But what’s next what size house they seek and how door is important. Three barking much land it requires. Besides rural dogs or an adjoining house that’s sites, the company is building in not kept up are things that are not Charles subdivisions where other builders do likely to change.” Riehl Kevin not exclusively control the land or, Buyers of homes on scattered Murphy Nathan Felker increasingly, in established cities. sites may also control their home’s Josh While volume home builders typ- cost by finding less expensive land. Hurtuk ically focus on buying prime land in In York, the Duplagas put their Todd Nick locations near jobs and shopping, house on a three-acre site costing Megan Hunt Catanzarite Zaidan scattered site builders do not have less than $50,000 and construction Heather that constraint, Murphy said: the some $150,000, substantially less Baldwin buyers decide where they want to than their prior places. Carl Dyczek Vlasuk Sophia be. “I want,” Linda Duplaga said, “to Deseran Geoffrey Goss “We are targeting the buyer who retire someday.” ■

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MARCH 3 - 9, 2014 REAL ESTATE CRAIN’S CLEVELAND BUSINESS 17 Arcades: Free and discounted rent have attracted entrepreneurs continued from PAGE 15 she wasn’t one of the grant compe- ‘This is a work in progress’ “We deferred for several others tition winners, Pace offered her the Allen Wiant, vice president of who asked us, too,” Pace contin- same deal on rent — six months strategic development at Play- ued. “It has cre- free and six months at half price. houseSquare Real Estate Services, ated an atmos- She is now in talks to move into a first brought the development pro- phere and larger space in the coming months. ject to Pace in early 2012. “My husband and I live down- community of “Dick came to it with a vision town, just a couple blocks away entrepreneurs. and I think what you’re seeing and we were so happy to have It’s fun to see now is that vision realized of local these new shops and restaurants in how they collab- retail and him really being a leader the area,” she said. “It’s great to orate, cross mar- downtown of bringing retail back,” ket, work with have places that you can walk to he said. “It’s had somewhat of a each other and Pace and shop for gifts and necessities.” profound effect on how people learn from each look at the ground floors of their other.” A little renaissance buildings and how they want to For Farrell, who opened her or- bring them back to life. Certainly it ganic and natural gift store in June For Rachel Hsu, owner of Sushi has given other retailers the confi- 2013, the free and discounted rent 86, which had already been located dence that you can do something was the only way she would or in the arcades when Pace took over, JANET CENTURY new downtown and that there is could open her business. winning a grant was a way for her to Anji Barshic says her Love, Anji kiosk has thrived at the 5th Street Arcades. actually a retail center.” “I would have never, never even fund an extensive expansion and The 15 craftsman who make up tive business that opened its doors Local retail often translates to considered it if Dick hadn’t men- more than quadruple her space. Soulcraft Gallery, a showroom in mid-July after winning one of the small enterprises that need finan- tioned free grant money and free The added 3,000 square feet will be cial and business support to space that features the work of an five storefront grants. rent,” said Farrell, who raised a to- used for an event space for classes, launch and take a chance on their eclectic mix of local furniture mak- For example, Pace installed sig- tal of $5,000 through grants and a private parties and meetings. dream. Pace has that part figured ers, also are among some of Pace’s nage on all the business fronts and crowdfunding campaign. “I am “We will have an eight-seat sushi out, he said. biggest fans. regularly markets and promotes all confident that when June rolls bar for the classroom, a 20-seat con- “I don’t think he’s done by any “He takes chances on anyone and the retailers in the space. He also around I will be able to afford the ference table that can be used for stretch. This is a work in progress,” full rent, which is quite an achieve- everything. He is a great supporter helped Soulcraft get new flooring team-building classes and a lounge Wiant said. “It’s an evolutionary ment for a small business. I think of Cleveland and seeing Cleveland installed and brought a contractor area. It’ll be quite nice,” said Hsu, type of redevelopment. There is that is a very good indication that getting its footing back, and he has to paint the walls for them. who has added more than a dozen not a lot of retail space like that business is growing and this is go- been so helpful in getting the small “He doesn’t have to do that. employees since locating in the Ar- downtown and people are going to ing to be a sustainable business.” business up and going here in Ar- Those little things are actually cade. “It’s been our best location of look at those who are successful Not to mention that the retail cade,” said Shelley Mendenhall, huge things for a small business the three we’ve had downtown. It’s there and they are going to want to space has been completely trans- managing partner of the collabora- just starting out,” she said. be there.” ■ formed during the last six months a lot more vibrant with a nice di- with more and more people com- verse group of stores.” ing to the arcades to shop and Gary Cohen, third-generation dine. “I can only think it’s going to owner of Colonial Coin, Stamp & keep getting better and better,” Jewelry Co., couldn’t agree more. Farrell said. “People are starting to His family store has been in the ar- change their shopping patterns cades for more than 90 years. and are exploring the place for the “Dick Pace has been a true first time in decades. I hear that blessing to the arcades and to story so much.” downtown and to the city of Cleve- Key Tower In the slightly more than seven land. He has put a lot of time and months that Anji Barshick has had effort into trying to get a little re- and its ownership her Love, Anji kiosk for her hand- naissance and some action and made paper flowers, her fledgling create something special into business has blossomed. Although these arcades,” he said.

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18 CRAIN’S CLEVELAND BUSINESS REAL ESTATE MARCH 3 - 9, 2014 Companies are giving office spaces fresh look

are remodeling is there aren’t many managing shareholder of the office. It’s ‘the year of the remodel’ in NE Ohio choices now,” he added, citing Similarly, The Riverside Co. decid- specifically those companies that ed to remodel in 2013 and stay in the By MICHELLE PARK LAZETTE ues to be a challenge. need tens of thousands of Class A, Terminal Tower — where it’s been [email protected] Still, he said, 2014 and 2015 or top-tier, square footage. “That’s since 1993 — because of conve- probably will be “the year of the why we’re contemplating a second nience, said Stewart Kohl, co-CEO. hings sure look newer in remodel.” (office) building. “New buildings are beautiful and some downtown Cleveland The introduction of the Ernst & “I think this is the history of seductive,” Kohl said. “But … we’ve office spaces — and not Young Tower to Cleveland’s real downtowns,” Fishman continued. been here for 20-plus years, and it’s just inside the Ernst & estate market “provoked an in- “New product gets built that a space that we know and we like TYoung Tower that opened last year credible amount of thought and well. About half of our folks take SPRUCING UP changes the standard, and the At law firm Reminger Co. LPA, it’s exploration on the part of ten- market reacts to that.” public transit, and whether you take The things that those who are new paint, a new lobby, more ants,” Browning noted. bus or rail, you can’t beat Terminal remodeling are doing differently: Love it or leave it? durable flooring and a café with a “We’re out in the market now Tower for convenience.” ■ Smaller offices, even for senior marble bar and booths nestled near with many, many tenants that are The executives of a number of So, Riverside stayed in the build- th th executives who, armed with today’s televisions and a faux fireplace. considering their alternatives,” he companies that recently remodeled ing, but leased the 28 and 29 floors technology, don’t collect the binders instead of the 26th and 29th. For the At private equity firm The River- said. and renewed leases said they con- and books they used to first time, it renovated as part of its side Co., it’s new furnishings and a Given that there’s not much sidered to some degree moving to ■ Less emphasis on private offices, lease renewal at the tower, adding new stairwell connecting people new construction to consider, the new tower. more emphasis on work stations roughly 4,500 square feet for a total who work on two floors. such clients are considering re- While each had reasons unique and other collaborative spaces modeling where they are or re- of 16,870 and a stairwell that allows And at investment banking firm to them for the type of remodel they ■ Natural light modeling another space to which its team to walk between floors. No Western Reserve Partners LLC, it’s did, there are commonalities for ■ Walls to which employees may pin they’d relocate, Browning said. more “cumbersome elevator be- new carpet and more than 5,000 doing an office makeover — among materials or write for brainstorming Meanwhile, the new kid on the tween 29 and 26 anymore,” noted additional square feet. them, the higher cost of new space purposes block is more than 90% leased, ac- Coleen Becker, office manager. David Browning, managing di- and a preference for their current ■ Wi-Fi available throughout, so cording to Adam Fishman, a prin- “It came down to money, and even rector and Northeast Ohio market location over the Flats. employees aren’t tied to using cipal of Fairmount Properties, with the expensive stairwell and even leader for global commercial real For example, the Cleveland office technology in one place estate services firm CBRE, said from which developed the Flats East with creating space, which I think feels of labor and employment law firm ■ Lower panel heights of cubicles his perspective the number of lease Bank, including Ernst & Young and looks very new … we were still Ogletree, Deakins, Nash, Smoak & ■ Lighter colors and the use of extensions involving remodeling in- Tower, in a joint venture with The able to achieve that at a much lower Stewart P.C. began remodeling and glass creased in 2013. However, he noted, Wolstein Group. cost than new (space),” Kohl said. consolidating in February to one floor ■ Larger kitchens and high-top the number of property owners “We’re just left with spaces now Attraction and retention of em- from two half-floors in Key Tower be- tables in them who are overleveraged and there- that are 2,500 to about 10,000 cause it wants to stay close to major ployees were cited often as drivers fore lack the flexibility to help fund square feet,” Fishman said. clients of the firm and the federal and of remodeling. So, too, were the Sources: CBRE; Environments 4 improvements for tenants contin- “I think part of the reason people state courthouses, said John Gerak, preferences of a younger, more Business; Westlake Reed Leskosky technologically savvy work force, CBRE’s Browning said. GALLERY ONLINE “Many, many employers are fo- For a look at what some local offices cused on, ‘Look, I’m in a competitive have done to renovate their spaces, market. To retain and attract employ- such as Reminger Co. LPA (pictured ees, I need a workplace that people above), go to: THE BEST INVESTMENT FOR YOUR want to come to and, when they’re CrainsCleveland.com/Remodel there, they’re productive,’” he said. “Firms are really looking at a combination of the impact of tech- them,” he said. “I’ve dealt with land- ADVERTISING DOLLARS nology on their business and how lords (who say), ‘Whatever we signed, employees are actually using their that’s all we’re going to do.’ We did space,” Browning added. “More of- not have that experience here. ten than not … they’re doing re- “We wanted to stay a part of this modeling in order to make that Fourth Street, Public Square area,” space more efficient and effective.” he said, citing also the nearby pub- Like a number of other recent re- lic transit options. Editorial Feature List List modelers, the Reminger law firm actu- Some things you Finance Wealth Management Money Managers Largest Acquisitions of 2013 ally reduced its square footage via work it finished in December 2013, just can’t change Issue date: March 31 Issue date: April 7 Issue date: April 21 said Diane Giorgi, director of human While it’s easier to stay than move, resources and law firm administration. Ad close: March 20 Ad close: April 1 Ad close: April 10 there are disadvantages to remodel- The firm opted to stay in the Land- ing rather than selecting new space, mark Office Towers — where it’s been Walters said, including the inability since 2002 — in part because its land- to change the physical plant of a lord, The Sherwin-Williams Co., has building and certain inefficiencies been an “excellent partner,” and be- that might remain, such as overactive cause of its location, said Stephen E. steam heat. (“It’s 76, and I don’t want Walters, managing partner. it to be,” he said, smiling, of the tem- Editorial Feature List List “If you’re going to live in some- perature in his office.) body’s house, you’ve got to like See SPACES Page 19 Who to Watch in ... Finance Investment Advisers Credit Unions Issue date: April 28 Issue date: April 28 Issue date: May 5 Ad close: April 17 Ad close: April 17 Ad close: April 24

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MARCH 3 - 9, 2014 REAL ESTATE CRAIN’S CLEVELAND BUSINESS 19 Land banks have proven to be effective fighters of blight By LEE CHILCOTE banks, facilitated by a 2008 state worked with the nonprofit Interna- tion blighted sections of neighbor- Creating carbon copies [email protected] law and funded by penalties on tional Services Center to renovate hoods to clear the way for future delinquent property taxes, are the homes for refugees in Lakewood. growth. One example is North Former Cuyahoga County Trea- surer Jim Rokakis, the architect of n the five years since the primary tools communities have That’s just one example. The Coventry in East Cleveland, where Cuyahoga Land Bank was cre- to fight blight. land bank also has partnered with the land bank is planning to de- the Cuyahoga Land Bank, is now ated to address the problem The Cuyahoga Land Bank is veterans organizations to rehab molish about 60 properties. heading up the Thriving Commu- of vacant, abandoned proper- Ohio’s largest, with a budget of housing for veterans, disabilities The North Coventry push came nities Institute under the banner Ities across Cuyahoga County, the about $12 million per year. While groups to renovate homes for peo- about when leaders from East of the Western Reserve Land Con- nonprofit agency has demolished the majority of the properties it re- ple with disabilities, and local sub- Cleveland and Cleveland Heights servancy. He’s helping communi- about 2,000 blighted properties ceives through foreclosure filings urbs in order to offer incentives to began meeting to discuss ways to ties across the state — indeed, and facilitated the rehabilitation are eventually demolished, the owner-occupants. improve the neighborhood, which across the country — replicate the of approximately 750. agency has found creative ways to In North Collinwood, a partner- is close to the popular Coventry Cuyahoga Land Bank. It’s progress, says Gus Frangos, attract qualified investors. Frangos ship with the Northeast Shores Village area yet suffers from disin- “People who think that they live president and general counsel of says that more than 40% of the Development Corp. has resulted vestment and vacant buildings. ‘out there’ and are immune to the the land bank, who adds that homes the agency has acquired in 20 homes being sold to artists “We viewed it as a target area problem are sorely mistaken,” Cuyahoga County’s model is have been rehabbed. who are revitalizing the area. with a lot of good real estate fun- says Rokakis, arguing Northeast spreading to other places. Still, he doesn’t shy away from “This kind of strategy allows damentals, yet a lot of blight,” Ohio’s suburbs face higher taxes “That’s 2,000 root canals that spreading the message that more neighborhoods to really take root Frangos said. “With some surgery, when Cleveland’s tax base de- were just blighting whole commu- demolition will be needed before and build off of success,” says we thought that it could be clines. “It’s a big-city, small-city nities,” he says. Northeast Ohio’s real estate market Frangos. “It’s not one here and changed a bit.” and medium-city problem.” Of course, there’s still much stabilizes and returns to normal. one there — you’re really part of a Thanks to some funds allocated The Lake County Land Bank, more work to be done. “There are studies about what neighborhood.” from the Ohio attorney general’s which was formed last year, re- The problem of vacant properties happens when you knock down Thanks to the land bank’s re- Moving Ohio Forward program, cently acquired Moving Ohio For- was years in the making, and it blight, but I don’t need a study to search capabilities, the agency the result of the national mortgage ward funding to demolish 80 won’t be solved overnight. In the tell me this is really positive stuff,” also has helped the tax foreclosure settlement that was reached in homes. Executive director John city of Cleveland alone, there are he says. “For the person that’s process, steering prosecutors to- 2013, the cities of East Cleveland Rogers has applied for nonprofit about 8,000 homes that stand empty next to that house, that’s all they ward properties that are most and Cleveland Heights will begin status so that the agency can ac- and in need of demolition. Through- need to know. Their world ends at blighted. to see blight eliminated. cept donated properties or pur- out Cuyahoga County, the number the end of their driveway.” When someone buys a property, “The dynamics shift overnight,” chase HUD foreclosures at a dis- rises to more than 20,000 homes. the land bank’s deed-in-escrow Frangos said. Once lots are count and rehabilitate them for A recent study commissioned program ensures that the title isn’t cleared, they will be used for green future sale. by Cleveland City Council con- Working together transferred until work is complet- space or for parking for large “It’s an excellent tool,” he says. firmed that demolition leads to re- One way that the Cuyahoga Land ed. “We’ve only had a few apartment buildings, helping spur “It certainly meets a need, and it is duced foreclosures, stabilizes real Bank has achieved success is mishaps,” he says. reinvestment. There are now 10 one avenue for helping stabilize estate values and lessens tax through creating partnerships with The Cuyahoga Land Bank also land banks in Northeast Ohio, and neighborhoods and their value and delinquencies. Countywide land other organizations. For instance, it helps local communities reposi- 17 throughout the state. spur future economic growth. ■ Spaces: Benefits of staying put continued from PAGE 18 expanded and had cosmetic upgrades “But that (the building’s age) is done between August and October. part of the character,” Giorgi said. “We said, you know what, our Riverside’s Kohl also cited “archi- main job is to serve our clients,” said tectural details that you literally Mark A. Filippell, managing director. We Proudly Accept. cannot create today at almost any “The contractor said … ‘We can do al- cost” as a benefit to staying put. most all of that at night.’ That was But, new space has “the feel of to- such a big plus because then we could day,” he acknowledged. Big windows. provide client service without any dis- The most current elevators, restrooms ruption. Every minute we spend on it and technology. And, you’re typically (a move) is time that we’re not spend- working with raw space, so the layout ing … serving our clients.” is yours to decide, Kohl added. Of course, an uptick in remodeling A major downside to remodeling is a boon for contractors, interior de- is disruption, noted Ronald A. Reed, signers, architects and others hired to a principal with Westlake Reed freshen existing spaces. In the case of Leskosky, a Cleveland architectural Environments 4 Business, it’s pro- and engineering firm that recently duced record furniture sales. relocated to and gutted offices in The 6-year-old company, which the Hanna Building. supplies new furniture out of offices “Remodeling in a space while in downtown Cleveland and Fair- you’re in it is a little like wearing a lawn, enjoyed record sales in 2013, suit while it’s dry-cleaned,” he said. according to president Fred T. The potential for disruption is one Chaney. It also hired five people in reason why Western Reserve Partners the last year, bringing its total head- stayed at 200 Public Square, where it count to 14. ■

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RANKED BY TOTAL ACRES(1)

Industrial Park Number of Address Total acres Rank Website acres occupied Year opened Businesses located in park Leasing contact Strongsville Business and Technology Park 1 Foltz Parkway, Strongsville 44149 1,693 1,237 1960 CCL Design, Momentive Performance Materials, Eberhard Manufacturing, City of Strongsville www.strongsville.org/content/strongsville_business_park.asp C.Trac, Clark-Reliance Corp. (440) 580-3118

Liverpool Industrial Park Medina Blanking, Ohio Welded Blank, Three D Metals, Fuserashi, MTD 2 900 400 1982 Products, Shiloh Industries, EMT Cranes, Northlake Steel, Dunlop & Johnston, NA Innovation Drive, Valley City 44280 Superior Roll, Webb-Stiles Co. Twinsburg Industrial Park Verizon, United Stationers, Pepsi America, Weatherchem, Rockwell 3 Highland Road/Enterprise Drive/Case Parkway/Pinnacle Parkway/ 571 530 1977 Automation, Hitachi Medical USA, Windstream, Zinkan Enterprises, Ashland Geis Co. Edison Blvd., Twinsburg 44087 Distribution, Avid Technologies, Spencer Products, CIMA Plastics (330) 528-1276 Akcan Industrial Park Diebold Corp., Belden & Blake, Cintas, Lexington Technologies, The Ohio 4 Mt. Pleasant Road and Mayfair Road, Green 44720 400 250 1968 Lottery, Inventors Hall of Fame, Best Supply, Aramark, Massillon Plaque, Daniel DeHoff www.dehoffdevelopment.com Pepperidge Farms, Kirk Key, Orion RX, Finney's Drugs [email protected] Interstate Commerce Center 4 Mondial Parkway, Streetsboro 44241 400 144 1996 Best Buy, Playtex, Chrysler, Pods, Millard, Aurora Plastics, Schwan's, Classic Joe Perrow www.geisco.net Honda, Classic Nissan, Classic KIA, Flexalloy, Chrysler (216) 218-3511 NEOCOM I Massillon Development 6 Navarre Road, Massillon 44646 380 220 1999 Ziegler Tire, Case Farms, Kraft Power, E-Tank, Kendal Welding, PolyOne, Foundation www.massillondevelopment.com Shearer's Foods, Baker Hughes Inc. [email protected] Progress Drive Business Park 7 Pearl Road and Westwood Drive, Strongsville 44149 325 312 1960 DeMag Plastics Group, PPG Industries, Atlantic Tool & Die, Archway Marketing, City of Strongsville www.strongsville.org/content/progress_drive.asp ICI Metals (440) 580-3118 Port Green at CAK International Business Park 8 Massillon Road (SR 241) and International Parkway, Green 44720 316 120 1996 ASC Industries, Sam's Club/ASW, Diebold Inc., GE Special Pack, SilMix of SB Equities www.cakland.com Ohio, J & K Subway, Suarez Corp. Industries, Arhaus Furniture (216) 831-3310

Emerald Valley Business Park Home Depot, Stride Tool, Kauffman Tire, Owens & Minor, Custom Products, 9 285 115 2006 Clopay Building Products, Kanan Enterprises, Glazer's Distribution, Wine John Strabel Cochran Road and Pettibone Road, Glenwillow 44139 Direct, Omicron Supplies, Edwards Vacuum, Chep USA [email protected] Midway Industrial Park K & M International, Production Tool, Glass Equipment Development, CEIA Heritage Development Co. 10 Dutton Drive and Midway Drive, Twinsburg 44087 269 230 1977 USA, WebMD, Polystar, Decco Alloys, Towner Filtration, Visimax Technologies (440) 247-0820 Dow Circle Research Park 11 Sprague Road, Strongsville 44136 258 249 1960 Cintas, PNC Bank Technology Center, Enterprise Holdings, Acuative, Lumitex City of Strongsville www.strongsville.org/content/dow_circle.asp (440) 580-3118 Ascot Industrial Park Pneumatic Scale, Coltene/Whaledent, SpunFab Adhesive Fabrics, Coretec, 12 State Road, Akron 44223 201 186 2001 Linden Industries, Main Street Gourmet, Spectrum Plastics, Becker Pumps, Brent Hendren www.ci.akron.oh.us/ed/development/indparks/ascot_park.htm Illumetek, Atlas Systems, Inter-Ion, Front Line, Applied Vision, NSK (330) 375-2133 Diamond Business Center 13 Pettibone Road, Glenwillow 44142 200 53 2007 Superior Beverage, Mat Holdings, Winston Products, NOCO, Ryder Logistics Joe Perrow www.geisco.net (216) 218-3511 Frost Road Commerce Center 13 Philipp Parkway and Frost Road, Streetsboro 44241 200 175 1996 L'Oreal, Venture Lighting, Andrews Moving, A. Duie Pyle, Seegott, Soft-Lite Joe Perrow www.geisco.net Windows, Fastenall, St. Gobain, Lange Grinding (216) 218-3511 Riverbend Commerce Park 15 Colorado Ave., Lorain 44052 199 22 2005 Camaco Lorain Manufacturing, U.S. Post Office Distribution Center, Horizon Lorain Development Corp. www.cityoflorain.org/community/economic_development.shtml Daycare Center, Dollar General (440) 204-2020 French Creek Business Park 16 East River Road, Sheffield Village 44054 187 12 2005 Westport Axle, Amware Distribution George J. Pofok www.barnacaplan.com/ourproperties/detail.asp?id=137 [email protected] Sidley Industrial Park 17 I-90 & state Route 45, Austinburg 44010 180 30 2002 Save A Lot Lu Dunlap www.ashtabulagrowth.com/industrialpark.asp (440) 352-9343 X3209 York Alpha Park 17 York Alpha Drive, North Royalton 44133 180 135 1977 Laszeray, Induction Tooling, Royal Wire, H & D Steel Services, May Industries, Tom Jordan www.northroyalton.org Valley Tool and Die [email protected] Geauga Industrial Park 19 Industrial Parkway, Middlefield 44062 163 90 1965 KraftMaid Cabinetry Inc., Mercury Plastics, Polychem Dispersions, Johnsonite, David Ford www.federalimprovement.com Sajar Plastics, Normandy Products, Penske [email protected] Sweet Valley Business Park Simon Caplan 20 9880 Sweet Valley Drive, Valley View 44125 160 132 1988 XPedex, Dawn Enterprises, IBEW, ImaginIt, Pakrite, Sherwin-Williams (216) 525-1472 Cornerstone Business Park 21 2000 East Aurora Road, Twinsburg 44087 158 158 2013 Vistar (Performance Food Group) Terry Coyne www.cornerstonebusinesspark.com (216) 453-3001

Heritage Business Park Eaton, Keene Building Products, TECT, Cuyahoga Community College, Tremco, 22 157 41 1930 North American Plastics, Babcock & Wilcox, JW Belt, Premium Steel, Philips Ohio Realty Advisors LLC 23555 Euclid Ave., Euclid 44117 Medical Systems (330) 659-4060 Brunswick Business Park Technical Tool and Gage, Medina Supply Company, IMT, Mack Industries, 23 Industrial Parkway, Brunswick 44212 150 120 1990 Digestive Disease Consultants, RPTS, Point Recognition, All Construction NA www.brunswick.oh.us Services, Philpott Rubber, Direct Ink, CTL Brunswick North Industrial Park 23 945 Industrial Parkway North, Brunswick 44212 150 120 1974 Fogg multi-tenant, Inflatable Images, Destiny Manufacturing, All Construction Dave LeHotan www.brunswick.oh.us Services, Philpott Rubber, W. W. Williams (216) 906-0100 Cleveland Business Park 23 17909-18601 Cleveland Parkway, Cleveland 44135 150 82 2000 NA Joseph Greenberg www.chelmproperties.com (440) 424-0114 Midway Industrial Park Sunbelt, AIT, Mercy Cancer Center, Symrise, APR, Life Care, Carpenter Steel, Bob Graham 23 Schaden Rd,/Keep Ct./Freedom Ct./Liberty Ct., Elyria 44035 150 150 1970 Marathon Steel, Fast Track (440) 324-3550 Quantum Centre 23 Greenwich Road, Wadsworth 44281 150 144 2000 Parker Hannifin Corp., E. C. Morris Corp., Ebner Furnaces Inc., Soprema Inc., NA www.naicummins.com Accel Group Inc. Taylor Woods Industrial Park Invacare, Norlake, Wolff Brothers, Tool & Die Systems, Poppe's Popcorn, Bob Graham 28 Taylor Parkway, North Ridgeville 44039 143 143 1981 Cuyahoga Vending, Frito Lay, Rhenium Alloys (440) 324-3550 Mills Business Park 29 Faircrest & Sherman Church, Canton 44721 141 20 2009 Medline Industries Inc., Old Dominion Freight Line, I2R DeHoff Development Co. www.dehoffdevelopment.com (330) 499-8153 Akron Canton Corporate Park 30 1525 Corporate Woods Parkway, Green 44685 140 100 1986 Hankook Tire, United Technologies, Prudential Financial, Bonnot, InfoCision Mike Mockbee www.camincorp.com Management, ADT (330) 896-3253 Stonegate Corporate Park 30 Highlander Parkway, Richfield Village 44286 140 65 2000 Bureau of Criminal Identification, Cisco Systems Inc., Corporate Express, Traci Mockbee Hunt www.camincorp.com OEConnection (330) 896-3253 Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Information as of Jan. 1, 2014. 20140303-NEWS--21-NAT-CCI-CL_-- 2/28/2014 3:14 PM Page 1

MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Crowd: Complex has 2,200 parking spaces, and 1,000 more are nearby

continued from PAGE 1 “There’s a lot we can do, and it’s a very adaptive space,” he said. In the next month or so, Nautica officially will unveil a new website, NauticaSpe- cialEvents.com, that will focus on its potential to host big events. An early version of the site already is online. A new print brochure highlighting the flexible space also is in the works, and Ertel said the complex’s event coordinators are versed in how to sell the space, which can be pitched for relatively small events such as weddings or large ones such as the Major League Base- ball All-Star gala it held in 1997. The complex has gone through a few evo- lutions over the years, Ertel said, from an entertainment district to a family-friendly banquet locale. Now, he said, it’s time to make a play in the convention market. The complex encompasses Jacobs Pavilion, FirstEnergy Powerhouse with its Windows on The FirstEnergy the River banquet hall and the Greater Cleve- Powerhouse land Aquarium, the Sugar Warehouse with and its Windows Shooters on the Water and the Nautica Queen on the River cruise ship. banquet hall In the past year, Jacobs Entertainment has are part of a invested about $2 million in indoor and out- $2 million door improvements at Nautica, said Patrick J. indoor and McKinley, executive vice president of Jacobs outdoor Investments Inc., the holding company for Ja- upgrade of the cobs Entertainment in Golden, Colo. That in- Nautica vestment includes a full interior redesign of Entertainment the Powerhouse and a renovated waterfront Complex. patio. In the past two-and-a-half years, Ertel said, RACHEL ABBEY MCCAFFERTY the complex has worked with the state to ex- events, or the fences surrounding the patios Ertel isn’t concerned about the parking sit- just selling the complex to outside event plan- pand its liquor license, essentially spreading and Jacobs Pavilion can come down to allow uation in the Flats. The Nautica complex has ners; he hopes those planning large or mid- it across the entire property. The changes guests to wander the grounds more easily. 2,200 parking spaces of its own, with another size events in the city will consider Nautica, started when the company began to recog- And with the expanded liquor license, 1,000 spaces in the surrounding area. For too. nize the “true ramifications” of Cleveland’s which the property worked to acquire in 2012 large-scale events, guests usually are driven Positively Cleveland, the city’s convention new convention center and the Global Center and 2013 by consolidating multiple licenses to the event by motor coach or shuttle bus, he and visitors’ bureau, also is changing the way for Health Innovation, Ertel said. into one, open bars can be set up throughout said. it pitches Nautica’s space, said communica- “It’s time we paid attention and ramped up the space and guests can move from venue to tions manager Jennifer Kramer. with the rest of the city,” he said. venue without setting down their drinks. A message of change Positively Cleveland’s Destination Plan- Matt Mullins, spokesman for Ohio Division ning Guide for meeting planners and the Of- Drink it in of Liquor Control, said the Nautica complex Ertel noted that 2013 was Nautica’s best ficial Visitors Guide for leisure guests will in- is a unique facility, but the type of permit it year since the economy took a dive during the clude the Nautica complex locations in more Some changes at the complex just involve obtained is similar to those given to locations recession, though he declined to share rev- categories, such as dining or family-friendly, a different way of thinking about the space. such as ballparks and zoos. The division enue. The concert season at Jacobs Pavilion in the future, thus increasing exposure for the For instance, for big events, Ertel said the var- prides itself on working with businesses to get was the best it has been in a decade, and the spaces, Kramer said. ious doors and fire escapes in the Power- them the permits they need, Mullins said. Nautica Queen had its best year in several, he While Positively Cleveland always has tout- house can be opened to allow easy move- The complex’s website still boasts that it said. ed the indoor and outdoor aspects of the ment between the rooms in the aquarium can hold events for up to 5,000 — but looking But Cleveland needs bigger venues to sell Nautica space, its members now make sure and Windows on the River. at the space in a comprehensive way and itself in the national market, Ertel said. The event planners know they can have access to Casual dining spaces, such as the Nautica combining the 4,000- to 5,000-visitor capaci- Nautica complex, with its “people- and event- all the venues in the complex, rather than just Cafe, can be turned into a VIP area, like it is ty of the Powerhouse with the 5,000-visitor friendly” improvements, offers a unique loca- pitching it in a piecemeal way. There’s a during the complex’s New Year’s Eve event. capacity of Jacobs Pavilion will allow Nautica tion with a view of Cleveland’s skyline and “seamless transition” between the spaces The outdoor patios can be used for special to handle much larger crowds. space for thousands. Ertel said the focus isn’t now, Kramer said. ■ Physicians: CliniSync expects major increase in sharing soon continued from PAGE 5 another big challenge: By Oct. 1, all with another hospital system. In Sync DEADLINE MANIA health care providers are required MetroHealth in 2010 started to change the way they record every sharing records with other local ■ Many Ohio health care providers Health care providers across the Private practices in that position diagnosis and procedure they per- providers that use software made will be ready for Stage 2 this year, United States are racing to meet a have until Dec. 31 to collect Stage 2 form. Modern Healthcare, a sister by Epic; they include the Cleveland and afterward patient records will rising set of federal standards data. publication to Crain’s, said con- Clinic and HealthSpan, which used start flowing among them, said Dan regarding how they use electronic ■ Health care providers that just verting to the so-called ICD-10 to be Kaiser Permanente’s Ohio op- medical records. Those who fail to Paoletti, CEO of the Ohio Health In- recently met Stage 1 already have recording method while upgrading erations. Cebul regularly taps into keep up soon could start missing out formation Partnership. The group missed some bonus payments, but an electronic medical record sys- the Epic network to gather infor- on bonus payments from Medicare is in charge of CliniSync, which acts they’re safe for now. tem to Stage 2 requirements can be mation. and Medicaid. Plus, their normal like an Internet service provider like fighting Godzilla and King He described a situation in Janu- Medicare payments could fall slightly. ■ Providers that don’t use electronic that allows doctors and hospitals in Kong at the same time. ary 2011, when a middle-aged man But different providers face different medical records soon will see slightly most parts of Ohio to share digital Plus, some private practice doc- who had passed out the previous deadlines. reduced Medicare payments until patient records. tors think investing in advanced they get to Stage 1. day stopped into his office to find CliniSync already lets its many ■ Hospitals that have used systems record sharing capabilities will not out why. When the man passed out, participating providers send indi- meeting basic Stage 1 standards for ■ Can’t make your deadline? The be “as efficient and helpful” as ad- he had been taken to the emer- vidual files, such as images or test two years are supposed to have data government does give “hardship vertised, said Noreika, who has gency room at Lutheran Hospital, a results, through a messaging sys- in hand showing they meet Stage 2 exemptions,” but you’ve got to prove used a ChartLogic electronic med- Cleveland Clinic facility just two tem that works like email. But Pao- by Sept. 30. your case. — Chuck Soder ical record system since 2002. miles down the street from Metro- letti said he expects to see a dra- “Not a lot of people are neces- Health, so Cebul got on his com- matic increase in the amount of sarily jumping on the bandwagon,” puter and found test results from sharing going on by year’s end, have signed contracts with Clini- Dr. Joseph Noreika said meeting he said. the man’s visit to Lutheran. The once providers can exchange more Sync. Stage 2 requirements is a “front- man didn’t have a heart attack or a patient data in a standard format. burner issue” at his small Medina- He’s looking forward to it. File sharing stroke; he just fainted. Next year, the trend will become “If you don’t do this … then based practice, Excellence in Eye The man went home relieved far more prevalent, said Dr. Jeffrey you’re back in the old world where Care. But he wants to get a sense of But Dr. Randy Cebul is on board, and saved money: MetroHealth Sunshine, chief medical informa- the patient is a relative stranger to how CliniSync will work before partly because the MetroHealth in- normally “would have done all tion officer at University Hospitals, you when they show up,” Sunshine joining the network. ternist has experienced the benefit those tests again. And we didn’t,” one of the 144 Ohio hospitals that said. Noreika also must worry about of electronically sharing records Cebul said. ■ 20140303-NEWS--22-NAT-CCI-CL_-- 2/28/2014 3:48 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 3 - 9, 2014

ment, Medical Mutual will continue to be COSE’s exclusive provider un- COSE: Redefining goals of group til 2024. John Hexter, a former COSE board continued from PAGE 5 need — a goal that creates a chal- and the Business of Good Founda- member and a member of the orga- Millard said COSE will link with lenge of its own. tion found there is a $38 million gap nization since 1978, has had his dis- small, local chambers of commerce “How do we make sure that the in micro-financing for the smallest agreements with the organization — and other organizations that sup- second call (an entrepreneur) businesses in Cuyahoga County. he left the board in 2006 because of port small businesses. To make it- makes, after a call to us, goes to ex- Millard said COSE will look to help them, he said. But Hexter, a longtime self more attractive, COSE has re- actly the right place to get help?” connect small businesses with new, printing executive, lauds this new duced its membership fee. Millard said. as-yet unspecified solutions for strategy. Membership now starts at $300 a The answer includes a new pro- borrowing, particularly in the poor- “Steve and Rion are pushing in the year for the smallest companies, gram where young small business- er neighborhoods in the city of right direction,” Hexter said in an in- down from a high of $450 in 2006. es can find help through a network Cleveland. terview last week. “They’re reinvent- Small businesses that already are of COSE professional service mem- Millard said when he took the ing their roots.” part of a local chamber of com- bers — lawyers, accountants and helm of COSE 15 years ago, the or- Hexter is especially enthusiastic merce can join for half price. others — that the organization is ganization had grown easily be- about the way COSE is spreading be- To make up the financial short- calling “Linktunity.” (The website is cause of its unique ability to save yond the Cleveland area and seeking fall, Millard said COSE will seek linktunity.com.) members on health and workers’ to be a nonpartisan advocate for sponsors and foundation grants. “If (a small business owner has) compensation insurance. small business. Hexter sees COSE as COSE also will try to help entre- an issue with marketing or a legal “ ‘Give us 300 bucks a year, we’ll more inclusive than organizations preneurs establish new small, even issue, (he or she) can go on there give you back 301 or better,’ ” Mil- such as the National Federation of micro, businesses, particularly in and ask for help and somebody, an- Small Business/Ohio, which he, and struggling neighborhoods and other member, will get back right lard said of the old strategy. “I think communities. away,” Millard said. “It helps give as we go forward it’s more about, Millard, believe is reflexively conser- through Medical Mutual of Ohio. exposure to our professional ser- ‘It’s tough being a small business vative. But under the Affordable Care Act, vice members and helps small busi- owner, we are a resource to you “It’s absolutely important that Connecting the dots COSE members may have more nesses get help they need quickly.” both for the things you know you we’re evenly split between Republi- A big part of COSE’s goal is to im- need and the things that make this competitive options, so it’s no can and Democratic, liberal and prove the system of support for en- a better place for you to be a small longer a financial cash cow for conservative,” Hexter said. “The trepreneurs by serving as a “con- Do the math business owner that you don’t COSE. concerns are bipartisan.” vener” that improves collaboration COSE also plans to play a role in know you need.’ Jared Chaney, Medical Mutual’s Hexter said he hopes the leader- among the many organizations that what has been a difficult job in re- “I think we’re making the most chief marketing officer, said about ship can convince small business exist to assist them, Millard said. cent years — connecting entrepre- fundamental shift in our approach a year ago his company and COSE owners of COSE’s relevance when it “There are 60 or 70 groups in neurs and small business owners then we’ve made in 15 or 20 years,” reworked what had been a 10-year comes time to renew their member- Northeast Ohio to help small busi- with capital. he said. agreement that would have run un- ships. nesses, and the connectivity is really Millard said after several years of til 2016. “The next 24 months are critical to poor between them,” Millard said. At the time, Medical Mutual took the renewal process,” he said. tight lending, there is not enough cap- Beyond NEO COSE wants to be the organiza- ital available to small businesses. in-house the sales and service func- “They’ve got to make it clear that tion that is the conduit for directing For example, he said, a 2011 COSE still offers group health in- tion that it had been paying COSE there is something different at COSE ■ entrepreneurs to the help they study by the Cleveland Foundation surance to its members exclusively to do. Under a new, 10-year agree- and it’s worth investing in.” REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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MARCH 3 - 9, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Dollar Bank banks on Besides those duties, Dollar Bank said genuine human connection.” FEBRUARY 24 - MARCH 2 Tucker, who wrote a weekly column for He said the site is within walking and bik- Crain’s former publisher Crain’s while the newspaper’s publisher, ing distance of nearby residents and close ■ My old boss has a new job. “will continue his insightful and honest enough to garner traffic from the West Side The big story: Ohio’s three major cities, in- th Brian Tucker, who for 25 years was pub- commentary on Cleveland’s business envi- Market and West 25 Street. Phoenix also cluding Cleveland, made the first cut to host the lisher and editorial director of Crain’s Cleve- ronment in a new Dollar Bank blog.” wants to do something new with the menu Republican Party’s presidential convention in land Business before his retirement late last Sounds like an interesting gig. We wish at this location, but Feran said those plans 2016. Republican National Committee chairman year, starts his job this week as vice presi- Brian the best. — Mark Dodosh are still percolating. — Stan Bullard Reince Priebus announced the party reduced dent and director of corporate affairs for the list of possible hosts from dozens to eight: Dollar Bank. Phoenix Coffee Magnet attracted Cleveland, Cincinnati, Columbus, Dallas, Den- “Brian’s wealth of local and state knowl- to rise in Ohio City to long-term focus ver, Kansas City, Las Vegas and Phoenix. A site edge and the respect he has earned from selection committee will sift through the bids to ■ Here’s a novel way to compete with Star- ■ Magnet, Cleveland’s manufacturing advo- Northeast Ohio’s senior business and civic bucks, the omnipresent coffee chain with cacy organization, officially is moving for- pick a winner that will welcome 40,000 visitors leaders will be essential as we implement for four or five days in June or July of 2016. locations in commercial districts most ward with its focus on long-term partner- Dollar Bank’s strate- everywhere. Cleveland-based ships with area companies and away from gic initiatives in cor- Phoenix Coffee Co. said it plans solutions for short-term projects. Ready to rumble: A proxy fight appears to be porate and private in the offing at GrafTech International Ltd. to establish a new coffee shop Magnet’s leadership spoke with Crain’s banking, communi- in the bowels of Cleveland’s about this goal last August, and in Decem- GrafTech said a shareholders’ group led by ty development and Daniel and Nathan Milikowsky intends to nom- Ohio City neighborhood. ber the group hired Ethan Karp to lead the media relations,” Christopher Feran, Phoenix’s Partnership for Regional Innovation Ser- inate five director candidates, whose election said Andrew D. De- coffee director, said it has vices to Manufacturers, or Prism, program. would constitute control of the company’s vonshire, Dollar leased 1,000 square feet at the Magnet started Prism in 2011 to create a board, to stand for election at the 2014 annual Bank’s president of former West Side Community cohesive network of manufacturing re- meeting. GrafTech said its board will present its Ohio. “Brian’s 28 House, 3000 Bridge Ave. The lo- sources, both in and outside the organiza- own recommended slate of board nominees in years at Crain’s Brian Tucker is shown with Cleveland cal roaster plans to establish a tion’s walls. Now, that network is taking the company’s definitive proxy statement and makes him uniquely Cavaliers president Len Komoroski, café with 35 seats and an out- center stage at Magnet. other materials that will be filed with the Secu- qualified to join our left. door patio there; an opening is Greg Krizman, senior director of market- rities and Exchange Commission. team as we celebrate projected for late summer. ing, said the campaign starts today, March 30 years of serving Northeast Ohio.” A plan to remake the building that housed 3, with a redesigned landing page for Mag- Combination on their plate?: Squire Joseph B. Smith, senior vice president of the social service agency until it moved in net’s site, emails to manufacturers and ads Sanders, the law firm giant that has its largest Pittsburgh-based Dollar Bank, said Tucker 2005 has been in the works for years. The on the radio and in the pages of this issue of U.S. office in Cleveland, disclosed it’s in prelim- will be working with the company’s busi- latest plan calls for 22 apartments, and Crain’s. inary discussions concerning a possible combi- ness bankers “identifying business contacts Phoenix will use some of the structure’s Karp, who also is vice president of client nation with Washington, D.C.-based Patton and referral sources consistent with the street-level space. services and marketing at Magnet, said this Boggs LLP. The combined global firm would bank’s growth objectives established for the The intersection of Bridge Avenue and switch is designed to change the region’s have roughly 1,700 lawyers in 45 offices across 22 Cleveland region.” West 30th Street is not Main and Main, but perception about Magnet’s capabilities. He countries. Squire Sanders counts about 1,300 at- “We also expect Brian will be attending that’s fine with Feran. said the organization can achieve more for torneys in 39 offices in 19 countries. Public pol- business networking events and doing “We want to do something different with a company by looking long-term rather than icy and lobbying firm Patton Boggs has nine of- speaking engagements as the bank’s repre- this café,” Feran said. “We’ve always been focusing on specific problems. fices, including a powerful Washington presence sentative,” Smith said. interested in using coffee as a means for — Rachel Abbey McCafferty and a network of offices in the Middle East. The firms emphasized their discussions are in “very early stages, and there is no assurance a combi- MILESTONE BEST OF THE BLOGS nation will be completed.” COMPANY: CSR, Cleveland Excerpts from recent blog entries on Times that the city had lowered the limit for CrainsCleveland.com. part-time employees to 29 hours a week from Burnishing a legacy: Oberlin College said it th will name a planned mixed-use development OCCASION: Its 20 anniversary 35. Workers’ wages were reduced accordingly. “Our choice was to cut the hours or give project — one that will include a hotel, restau- The audio-visual production company has Strip stake? rant and conference center — after the late Pe- ■ them health care, and we could not afford hit the two-decade mark with the help of a lot The Pittsburgh Post-Gazette reported that the latter,” said Hanwell, a Republican. The ter B. Lewis, the well-known philanthropist and of loyal employees. Cleveland developer John Ferchill has city’s 120 part-time employees include of- chairman of Progressive Corp. who died last “There are a lot emerged as a candidate fice clerks, sanitation workers, park inspec- year. The Peter B. Lewis Gateway Center will be of long-term peo- for redeveloping the tors and police dispatchers. a $32 million, 100,000-square-foot property at ple here,” says landmark produce ter- Hanwell told the newspaper that new the intersection of North Main and East College Bob Leon, the minal in Pittsburgh’s rules issued by the Internal Revenue Service streets. Besides a 65-room hotel and conference company’s presi- Strip District. “did not address the city’s fundamental center, the complex will include commercial and dent and CEO. The Ferchill Group concerns about the cost of providing health office space, a culinary training facility and a “We have employ- has an interest in the insurance.” restaurant showcasing locally sourced food. ees who have been with us for 15 to 17 Strip property, con- Lewis donated $5 million toward Oberlin’s $250 years, and one who has been with us for 22 firmed Ferchill, the Ferchill Pumping up the trading volume million fundraising campaign. years — even before we were incorporated. company’s chairman ■ Small investors such as Stephen Prewitt, All of them helped build CSR to what it is and CEO. However, the a 29-year-old disc jockey and videographer Moving chairs: Directors of Ferro Corp. in today.” paper noted that Ferchill Group “first wants to see what happens with the Buncher Co., in Cleveland, “are diving back into stock Mayfield Heights announced they plan to ap- Leon and his wife, Karen, came to Cleve- which has an option to buy the property trading, driving business at some discount point the company’s president and CEO, Peter land in 1988 to launch a Midwestern branch from the city Urban Redevelopment Au- brokerages to near record levels,” according T. Thomas, to the role of chairman. The appoint- of Colortone Camera in what was then called thority for $1.8 million.” to The Wall Street Journal. ment will take place at Ferro’s organizational the Stouffer Tower City Plaza Hotel. (It’s now Ferchill declined to tell the Post-Gazette The story indicated that average daily meeting, which immediately will follow the spe- the Renaissance Hotel.) They left the hotel in what type of redevelopment he envisions client trades at E*Trade Financial “totaled cialty chemicals maker’s annual meeting. The 1991 to start a stand-alone staging division. for the 1,533-foot-long building, which the about 160,000 in the fourth quarter of 2013, meeting date has not been set. William B. Three years later, in 1994, they bought the newspaper called “one of the city neighbor- up 25% from a year earlier. At TD Ameri- Lawrence has agreed to step down from his po- branch and renamed it Colortone Staging hood’s most distinctive structures.” trade, clients made 414,000 trades a day on sition as chairman if he is re-elected. and Rentals. average in the quarter ended Dec. 31, up The company now goes by CSR, and it of- Law of unintended 24% from a year earlier. Charles Schwab This and that: Charles Koch, the former fers live-event staging, audio/video produc- consequences Corp. customers made 488,000 trades a day chairman, president and CEO of Charter One Fi- tion, lighting, and creative services. It has on average, up 8%.” nancial, and his wife, Katie, donated $1 million handled events for corporate clients includ- ■ This isn’t how Obamacare is supposed to Prewitt is among those boosting these to John Carroll University to establish an en- ing The Plain Dealer, the Cleveland Orches- work. numbers. dowed professorship in international business tra and the Rock and Roll Hall of Fame and “Cities, counties, public schools and The Journal said he bought his first stock on and finance. The gift is part of the university’s Museum. CSR recently received the pre- community colleges around the country Jan. 15 after spending 2013 practicing with a $100 million fundraising campaign dubbed For- ferred vendor contract for both the Global have limited or reduced the work hours of simulated portfolio before using actual cash. ever Carroll, which launched publicly last May Center for Health Innovation and the Cleve- part-time employees to avoid having to He bought a handful of shares of GrowLife and so far has brought in $72 million. … Ameri- land Convention Center. provide them with health insurance under Inc., a seller of products used to grow mari- can Greetings Corp. named Gregory Steinberg For the past 22 years, Mr. Leon has been the Affordable Care Act, state and local offi- juana whose stock price quadrupled in 2013. its chief financial officer, effective March 1. on the advisory board for InfoComm, the in- cials say,” according to The New York Times. Prewitt sold the shares earlier this month and Steinberg most recently was the company’s cor- ternational trade association representing The cuts to public sector employment, bought shares of EarthLink Holdings Corp., porate treasurer, a position he had held since the audio-visual and information communica- which has failed to rebound since the reces- an Internet-services provider. 2006. Previous CFO Stephen J. Smith recently tion fields. CSR is one of five founding mem- sion, “could serve as a powerful political “I don’t see myself trying to long-term in- announced he was resigning to accept another bers of the Rental and Staging Network, an weapon for Republican critics of the health vest,” he told The Journal. “If I do enough job opportunity. organization of North American regional care law, who claim that it is creating a drain research and become a good trader, I think rental and staging companies. on the economy,” the newspaper noted. I can have a decent retirement when I’m 50 For information, visit www.csrav.com. Medina Mayor Dennis Hanwell told The or 60.” 20140303-NEWS--24-NAT-CCI-CL_-- 2/28/2014 11:43 AM Page 1