20121217-NEWS--1-NAT-CCI-CL_-- 12/14/2012 4:54 PM Page 1

$2.00/DECEMBER 17 - 23, 2012

INSIDE Last of Duke portfolio may be sold ‘Mompreneur’ ranks are dence that Duke itself constructed, growing Sources say N.Y. firm in talks for REIT’s 11 NE Ohio office sites as well as office buildings such as More mothers — Corporate Place I on Rockside such as Cindy Perry By STAN BULLARD property affiliate of big hedge fund pendence and Seven Hills, perhaps Woods Boulevard that it acquired to of Avon Lake, who [email protected] firm Och-Ziff Capital Management in hopes of a year-end close of the enter the Cleveland market in 1996. launched Pello last of New York. Och-Ziff Capital is an purchase. The sources asked not to If the deal is concluded, Duke January — realize they can start a Duke Realty Corp.’s long good- institutional alternative asset man- be identified because they are not would complete the departure from business and be a parent. PAGE 3 bye from Northeast Ohio soon may ager with more than $30 billion in authorized to speak for the parties Northeast Ohio that it began in 2005. become a final farewell. investments under management. involved. It sold its substantial industrial port- PLUS: The Indianapolis-based real estate Two sources said Och-Ziff and an The properties are blue-chip folio in 2005, its portfolio of nine of- ■ East Cleveland-based GE owner and manager is in talks to sell operating partner are pursuing the office buildings that total 1 million fice buildings in the eastern suburbs Lighting finds room for LEDs in the its last 11 suburban office buildings purchase of the group of properties square feet. They include the three in 2007, and three office buildings in industrial market. PAGE 3 here to Och-Ziff Real Estate, the on and near Rockside Road in Inde- Park Place buildings in Indepen- See DUKE Page 18 Fiscal cliff impacting charitable gift giving Donors gauge effects of potential tax changes; groups push for clarity

By MICHELLE PARK [email protected]

This December, the month when many charities raise the bulk of their donations, uncertainty about the tax climate in 2013 is driving some donors to increase their gifts — because at least they know how their income and gifts will be taxed this year — while others are outright de- laying gifts until more clarity is had. Lawmakers are working to resolve RENDERING PROVIDED the so-called fiscal cliff, and they’re A vision of what a new Cuyahoga County headquarters could look like at the south end of the former Ameritrust complex on East Ninth Street. weighing whether the charitable deduction should be limited, plus other options that would diminish the tax breaks one can reap for giving Ameritrust deal won’t be market panacea to nonprofits. Charities aren’t taking it lightly. By STAN BULLARD and JAY MILLER ANALYSIS United Way of Greater Cleveland Empty office space [email protected], [email protected] on its website asks people to write impact on the office market, statis- members of Congress and urge them already absent from The proposal by developer Geis tically speaking, would be nil at best to preserve the charitable deduction, Cos. to buy the former Ameritrust — and could have negative implica- not “reform taxes on the backs of the vacancy rates, which complex for a mixed-use project that tions for Cleveland due to the ten- poor.” would include a new headquarters dency of outsiders to gauge the And the Cleveland Foundation industry observers for Cuyahoga County should do health of a metropolitan real estate hosted two presentations about downtown Cleveland a lot of good market by its vacancy rates. charitable giving strategies in uncer- use to judge metros’ by injecting life into the intersection Under its plan, Geis would turn tain economic times, one in mid- of East Ninth Street and Euclid the 29-story Ameritrust Tower into November for about 80 professional real estate health Avenue, real estate types agree. 210 apartments, would renovate the See CHARITIES Page 17 However, the potential deal’s See OFFICE Page 4

49 SPECIAL SECTION 7 2012NEWSMAKERS

NEWSPAPER Entire contents © 2012

74470 83781 Profiles of the individuals who made the biggest by Crain Communications Inc. headlines over the last year ■ Pages 11-16 Vol. 33, No. 49 0 20121217-NEWS--2-NAT-CCI-CL_-- 12/14/2012 12:19 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012 COMING NEXT WEEK NOT SO FAST The U.S. labor force has grown considerably more slowly since 2000 than it 2012 Crain’s Book of Lists did in the previous five decades, and that trend is not expected to change any time soon, according to projections from the U.S. Bureau of Labor Statistics. Our annual compilation of Even though the size of the population will grow, “its annual growth rate is pro- 700 W. St. Clair Ave., Suite 310, research includes lists published jected to slow in the coming decades,” BLS says. The decline in the growth Cleveland, OH 44113-1230 Phone: (216) 522-1383 throughout the year, along with rate of the U.S population is due to a variety of factors, such as the aging of the baby boomers, declining fertility rates and a reduction of the growth in Fax: (216) 694-4264 www.crainscleveland.com four new lists that have yet to immigration. appear in these pages. Plus, our Publisher/editorial director: Annual population and labor force growth rates by decade, Brian D. Tucker ([email protected]) Health Care, Executive Search 1950-2010, and projected for 2010-2050 Editor: and Staffing and Bioscience Mark Dodosh ([email protected]) Decade Population growth Labor force growth Managing editor: directories. Scott Suttell ([email protected]) 1950-1960 1.1% 1.1% Sections editor: Amy Ann Stoessel ([email protected]) REGULAR FEATURES 1971-1980 2.0% 2.6% Assistant editor: Joel Hammond ([email protected]) Big Issue ...... 9 Letter...... 9 1991-2000 1.2% 1.3% Sports Classified ...... 18 Personal View...... 8 Senior reporter: 2011-2020 1.0% .7% Stan Bullard ([email protected]) Editorial ...... 8 Reporters’ Notebook.....19 Real estate and construction 2031-2040 .9% .7% Reporters: Going Places ...... 6 What’s New...... 19 Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education October 2012 October 2012 October 2012 October 2012 September 2012 Michelle Park ([email protected]) Finance Ginger Christ ([email protected]) Manufacturing, marketing and retailing a portfolio company of Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim ([email protected]) $2 Billion $400 Million $350 Million $125 Million $400 Million Marketing/Events manager: Senior Secured Preferred Stock Christian Hendricks ([email protected]) Senior Unsecured Senior Unsecured Senior Secured Assistant Events Manager: Credit Facility Credit Facility Credit Facilities Credit Facility Jessica Snyder ([email protected]) Advertising sales manager: Joint Lead Arranger Joint Lead Arranger Joint Lead Arranger Lead Arranger Nicole Mastrangelo ([email protected]) Senior account executive: Sole Bookrunner Joint Bookrunner Joint Bookrunner Joint Lead Manager Administrative Agent Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) September 2012 September 2012 September 2012 September 2012 August 2012 Sales and marketing assistant: Michelle Sustar ([email protected]) Office coordinator: a portfolio company of Toni Coleman ([email protected]) a portfolio company of A Terra Firma Company Digital strategy and development Mustang Hills Wind Farm manager: Stephen Herron ([email protected]) $265 Million $245 Million Web/Print production director: $300 Million $176 Million $260 Million Craig L. Mackey ([email protected]) Senior Secured Senior Secured Senior Secured Notes Senior Secured Senior Secured Notes Production assistant/video editor: Steven Bennett ([email protected]) Credit Facilities Credit Facility Private Placement Credit Facilities Graphic designer: Lauren M. Rafferty ([email protected]) Joint Lead Arranger Joint Lead Arranger Joint Lead Joint Lead Arranger Billing: Joint Bookrunner Administrative Agent Placement Agent Sole Bookrunner Joint Bookrunner Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Delivering results Rance Crain: President Merrilee Crain: Secretary We know that successful, long-term business relationships Mary Kay Crain: Treasurer depend upon delivering results for our clients. William A. Morrow: ® Executive vice president/operations At KeyBanc Capital Markets, more than 500 professionals Brian D. Tucker: Vice president leverage extensive industry knowledge, equity and debt capital Robert C. Adams: markets expertise, and a leading merger and acquisition advisory Group vice president practice to deliver strategic solutions that help our clients capitalize technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer on opportunities. Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher

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DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Industrial focus boosts lineup at GE Lighting LED manufacturer sought market entry as demand emerged

By CHUCK SODER Cleveland. The General Electric Co. producer of industrial LED lighting [email protected] unit previously did not own an LED to buy after noticing that demand product designed to provide general among industrial customers was GE Lighting wants to start lighting lighting for high-bay industrial “emerging faster than we thought it up factories and warehouses with buildings. Albeo specializes in the would,” said Maryrose Sylvester, LEDs. segment, marketing itself as a CEO of GE Lighting. The company’s fast-growing LED provider of “industrial strength LED Factories and warehouses are business dove into the industrial lighting.” looking for ways to cut their energy market on Nov. 26, when GE Lighting Albeo will help GE Lighting capi- bills, which tend to be a big part of agreed to buy Albeo Technologies talize on the industrial market’s their operating costs, Ms. Sylvester GE Inc. of Boulder, Colo., for an undis- growing demand for products that said last week during a news con- Lighting closed price. use light-emitting diodes, which are ference in Boulder. CEO The deal immediately will fill a more efficient — though more Plus, they tend to be large cus- Maryrose gap in the product lineup and expensive — than most other lighting tomers that buy more products, Ms. Sylvester customer base of GE Lighting, products. Sylvester said. MCKINLEY which is based at Nela Park in East The GE unit started looking for a See LIGHTING Page 18 WILEY THE WEEK IN QUOTES “The old construction MOMS MAKING paradigm ... was to put a 20-year-old next THEIR OWN WAY to a 50-year-old and you teach them. There Ranks of ‘mompreneurs’ grow with realization has not been that that they can both work and be a parent opportunity for the By GINGER CHRIST younger workers.” [email protected] — Jeff Riddell, chairman of the Ohio Ready Mixed Concrete Association. Page 7 A 2011 scare with melanoma convinced Cindy Perry to finally turn a hobby into a career. “Congress should Ms. Perry, an Avon Lake mother of two, last have productivity January launched a business from her home selling “pellos” — baby floor pillows she initially designed standards. If I was as for her own children. The unproductive as those pellos essentially are 33- guys are, I would lose inch round pillows with my job.” depressed centers that — From a response in The Big can be used for newborns Issue. Page 8 lying down or for babies learning to sit or crawl. “Cleveland has become Now, nearly a year after a national leader in its debut, Ms. Perry con- the school reform tracts with a local manufacturer — Western conversation. … It’s Reserve Sewing Co. in Cleveland — to make the being watched by pellos, and she said her product is sold at 37 bou- tiques in 17 states. She already has an intern and both critics and sup- is about to take on her first employee. porters alike.” Ms. Perry is among a growing number of — Terry Ryan, vice president for MARC GOLUB PHOTOS mom entrepreneurs, or “mompreneurs,” who are Ohio programs and policy, Thomas Cindy Perry, owner of Pello, which helps babies like the one at right — a neigh- B. Fordham Institute. Page 12 bor of Ms. Perry’s, Willa — get more comfortable. See MOMS Page 5

INSIGHT As economy improves, manufacturers want fair fight vs. China level playing field, but the playing “When the economy improves, Call for currency revaluation due to disadvantage in buying raw material field right now is tilted,” Mr. Sol- you’re going to see more and more ganik said. “As a business person, you of a negative impact,” said William By GINGER CHRIST its currency. sury’s Semi-Annual Report to Con- want to be able to compete against Gaskin, president of the Precision [email protected] “Definitely, Northeast Ohio would gress on International Economic people. You don’t want govern- Metalforming Association, a trade benefit from any type of move to and Exchange Rate Policies. The ments stepping in supporting par- association for metalworking com- Randy Solganik, owner of City help China revalue their currency,” Nov. 27 report stated that “further ticular industries, especially to your panies in Independence. Plating in Cleveland, wants a level he said. “Because of the manufac- appreciation of the RMB against detriment.” Mr. Gaskin said prices of raw playing field against China. turing base that’s in Northeast the dollar and other major currencies While the valuation of China’s materials in the United States likely Mr. Solganik, whose company puts Ohio ... it’s a Northeast Ohio issue.” is warranted,” yet to the chagrin of currency long has been a thorn in will rise as the global economy zinc plating on steel parts used in China’s currency, which is known many manufacturers, it did not go the side of manufacturers, the issue recovers. Yet he doubts the price of the automotive industry, is one as the yuan or renminbi, is “signif- as far as to label China a currency again is becoming prominent as those same materials will appreciate voice among many local manufac- icantly undervalued,” according to manipulator. companies look for ways to grow in the same way in China. turers calling for China to revalue the U.S. Department of the Trea- “I think we can compete on a business post-recession. See FIGHT Page 10 20121217-NEWS--4-NAT-CCI-CL_-- 12/14/2012 4:03 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012 Office: Deal would enliven key corner

continued from PAGE 1 building, the impact on the down- 17% among metropolitan areas on 1010 Euclid Building — also known town office market’s 20% vacancy an average basis. Detroit has the as the Swetland Building — to more rate would have been dramatic. highest vacancy rate, at 26%, and residential and retail space, and Two existing buildings were among New York City the lowest, 10%. would demolish two buildings on the finalists in the county’s head- Thanks to the recession’s lingering the complex’s Prospect Avenue side quarters search. Inland American effects on the office market, stellar to make way for the county head- Real Estate Corp. of Chicago offered markets such as Austin and Atlanta quarters. to lease 271,455 square feet at its 45 have high vacancies as well, 19% and The steps would slice a total of Erieview Building, which also faces 20%, respectively. 800,000 square feet of office space East Ninth Street. Miami-based Besides sending a positive signal from the market. However, that loss Optima Ventures offered 265,212 to prospective tenants, lower occu- wouldn’t do anything to vacancy square feet at the 925 Euclid Building, pancies also enable rents to rise, rates. That’s because office market the landmark structure formerly increasing the chance for landlords surveys by brokerage firms have known as the Huntington Building. to profit and produce more valuable turned a blind eye to the complex, The proposed, 222,000-square- properties. either because it was not in use or foot building Geis would construct wasn’t marketed. The complex has to accommodate the county would An eye on revitalization been empty since 1996. require demolition of 190,000 square Mr. FitzGerald said the Geis pro- “It will be better if it’s gone, but feet of obsolete office space that posal was the strongest in terms of statistically speaking, it’s a nonfactor,” hasn’t factored into calculations of impact on downtown and efficiency said Alec Pacella, a vice president in vacancy in the downtown market. of the building for the county. investment sales with the NAI Daus That’s because commercial broker- “We know there are landlords Is your business brokerage firm who cut his real estate age surveys cover what brokers and who would have liked us to fill their teeth as a property market researcher. developers care about most: money- building,” he said. “This is a propos- ready for 2013? Robert Redmond, a managing making office space. al that does reduce excess office director for the Mohr Partners space in downtown, and it does it in brokerage’s Cleveland office, agreed. The vacancy issue a way that’s $180 million addition to “The Ameritrust complex has not Mr. Redmond likened the impact economic development in down- Attorney been in our statistics for about 15 of the county going into a new, build- town Cleveland and helps revitalize Insight. years,” Mr. Redmond said. “But I’ll be to-suit structure to a company new Euclid Avenue.” The $180 million Business glad to see the whole mess resolved.” to downtown searching for space in figure refers to the total investment Foresight. The former Cuyahoga County the city and deciding not to lease here. Geis plans in the complex. commissioners acquired the Amer- “It’s a missed opportunity in Ryan Jeffers, a first vice president itrust complex in 2005 with the idea terms of the market,” said Mr. Red- at CBRE who was part of the team of the property becoming a central- mond, a student of the Northeast that aided the county in its search, Start here ized county headquarters. That plan Ohio and national office markets. said it is “pretty clear is that a came to naught because of escalating The larger impact of the county’s massive chunk of space is going to costs and financing constraints due potential move is that many national be put into development, go on the to the county building a new juvenile brokerages and consultants publish tax rolls and be removed from the justice center. But the new county office vacancy statistics to gauge the vacant defunct inventory.” charter government formed in 2011 health of markets. Companies use the Mr. Redmond acknowledged that McDonald Hopkins LLC again has taken up the issue of finding data to guide investment decisions the Geis plan would enliven one of 600 Superior Ave., East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 a new headquarters. and evaluate the attractiveness of a the dead zones of Euclid Avenue. Carl J. Grassi Shawn M. Riley If Cuyahoga County Executive metropolitan or downtown area. Many office brokers also see the President Cleveland Managing Member Edward FitzGerald, a county review For instance, the Marcus & Mil- project as a plus because the Geis Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach team and real estate consultant CBRE lichap investment brokerage esti- plan would strengthen downtown as Group Inc. had opted to lease head- mates downtown Cleveland vacancy a residential district, which aids the mcdonaldhopkins.com quarters space in an existing office by year end at 20.7%, compared with office market. ■

Legislators push to save tax Receiver’s Sale benefits in retirement plans By DARLA MERCADO tributions to the lower of $20,000 or Investment News 20% of income. Sens. Blumenthal and Isakson Retirement industry groups have said $4.7 trillion is held in 401(k), Cleveland Jet Center rallied around a proposal championed 403(b), 457 and other defined-con- by Sen. Richard Blumenthal, D-Conn., tribution plans, while another $2.3 and Sen. Johnny Isakson, R-Ga., to trillion is in private defined-benefit protect the tax incentives of saving plans. Individual retirement accounts in retirement plans. hold nearly $5 trillion, with much of The so-called “sense of the Con- that amount coming from rollovers Bids being accepted for a Receiver’s sale gress” resolution stressed that not from workplace retirement plans. only do tax incentives for saving in The accounts have been a boon of the Cleveland Jet Center, plans help encourage plan sponsors for lower- to middle-income earners, to maintain the plans and push par- as more than 70% of workers making ticipants to contribute, but they also between $30,000 and $50,000 annu- located at the Cuyahoga County Airport. have increased the number of people ally are contributing to their own who are covered by a retirement plan. retirement when they have a savings As the attention turns to reducing plan at work, according to the pro- the federal deficit and cutting tax posal. Three years ago, 79% of fed- The Cleveland Jet Center is a sub-tenant in For additional information expenditures, retirement plans once eral tax incentives for defined con- contact via email: again have come under scrutiny. A tribution plans were attributable to an office building and freestanding airplane Tim L. Collins, Esq., Receiver proposal in 2010 by Alan Simpson taxpayers with less than $150,000 in and Erskine Bowles, co-chairmen of adjusted gross income. ■ hangar at 26380 Curtiss Wright Parkway, Collins & Scanlon LLP the National Commission on Fiscal 3300 Terminal Tower Responsibility and Reform, tackled Darla Mercado is a reporter with Richmond Heights, Ohio 44143. Cleveland, Ohio 44113 expenditures tied to retirement Investment News, a sister publica- [email protected] savings, capping tax-preferred con- tion of Crain’s Cleveland Business. Sale is subject to Court approval, where is, No telephone calls, please. Volume 33, Number 49 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com- as is, without warranty or representations. Do not contact the Court. bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877- Postmark Deadline for bids: January 15, 2013 824-9373.

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DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Moms: Recession spurs a jump in two-income families continued from PAGE 3 ent set of challenges than other new starting their own business while small business owners, the moms running a family. These are women say. While trying to launch a new who cradle a phone in one hand, a venture, they’re also juggling the hile the oval office baby in another and make sales responsibility of raising children. calls while packing lunches. “The key thing is really to is quite ornate “It was a big decision because, of surround yourself with a team,” Ms. and the wine room course, we started with our personal Bisson said. “We all say we’d like to is for Mom and funds,” Ms. Perry said of starting try to do it all. It really is unrealistic Dad,W much of the Chagrin Falls her business with the help of her if you’re going to keep yourself sane husband, Andrew Perry, an attorney and your business moving forward.” home of Azim and Caren who helped her secure a patent and Carrie Crawford, who this year Nakhooda was built with their line up an accountant. “It was a started Comfy Cradle, a company STEPHEN HERRON PHOTOS decision, but it wasn’t really a long selling a pillow that wraps around a children in mind. discussion.” parent’s arm for use while holding Mr. Nakhooda, managing For 10 years prior to opening the or feeding a baby, opted to contract business, called Pello, Ms. Perry had out services as her business grew. principal and CEO of Cedar sold the pillows to family and friends, She now has the Comfy Cradles Brook Financial Partners in even providing pellos to a number made by RS Sewing in Canton; the of Cleveland Indians players starting packaging is created by Design Pepper Pike, lives with his families. She knew there was a Interface in Westlake. family in a home that features market but just had to take the leap. “It’s hard to balance the family an indoor grill, unusual energy- While surviving melanoma spurred and work and being a mom and Ms. Perry to get a patent, other being a wife. It’s been a struggle efficient technology and a nook moms move to action for a combi- trying to balance it all,” said Ms. accessible only by ladder. nation of reasons — to supplement Crawford, a mother of two from the family income, for empower- Reminderville in Summit County. Feast your eyes also upon a kitchen where the stove isn’t ment or to serve as a role model for Home team their children, local moms say. the only thing that packs heat. “It’s such a great example for my Mobile technology has been a big daughters,” said Tricia Price, co-owner factor in helping Ms. Price and Marci Take the tour now: www.crains of Reflect Who I Am. It’s a business Hower, co-owners of Reflect Who I cleveland.com/housecalls. that produces girls’ T-shirts with Am, launch their business. positive messages in reverse print, When the business began last so that the wearer can read them July, Ms. Hower was on her way to when they appear in a mirror. Montana for vacation. Using com- “You don’t have to just be a mom,” puters and smart phones, the two said Ms. Price, who operates from women could communicate as though her home in Hudson. “You don’t they both were in Northeast Ohio. have to just work. You can do both.” The business truly becomes a And it seems many women are family affair, Ms. Hower said. coming to the same conclusion. “Both of our families are huge advocates. The kids have actually Balancing act helped us with projects we’re doing The number of moms launching and photo shoots,” she said. Thank businesses — from website-based Her three sons even have been companies to consulting firms — is the force behind the company’s plans growing, said Traci Bisson, founder to launch a boys’ line of T-shirts. of The Mom Entrepreneur Support “The boys are not ones to hold Group, a national online community. back on their ideas,” she said. “They “It’s definitely increasing,” Ms. are directing the concepts.” Bisson said. In Ms. Perry’s case, her two sons, You She attributes the rise in mom ages 8 and 11, put stickers on Pello entrepreneurs in part to the reces- packages before the products are sion, which forced many women mailed to customers. to start contributing to household “It’s been a very good learning income. And, by starting their own experience for the kids,” said Ms. businesses, moms still can generate Perry, who likes that her sons see income, while remaining in the home her not only tackling her dream, but with their children. also dealing with budgets, contracts 7KHUH LV QR WLPH PRUH ÀWWLQJ WR VD\ Mom entrepreneurs face a differ- and production orders. ■ 7KDQN

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012 Metro still awaiting Medicaid waiver GOING PLACES JOB CHANGES and is doing the same for its specialty Expansion would cover about 30,000 county service lines, according to Phyllis ARCHITECTURE residents who wouldn’t typically fit in program Marino, the health system’s vice C.C. HODGSON ARCHITECTURAL president for marketing and com- GROUP: Mark Duluk to senior munications. Some of those changes design architect; George Gatta to By TIMOTHY MAGAW said John Corlett, MetroHealth’s vice included freeing up physicians from design architect/project director. [email protected] president for government relations administrative duties and shifting and community affairs and former scheduling models to accommodate CONSTRUCTION Duluk Gatta Paik The MetroHealth System still is director of the state Medicaid pro- more patients. waiting on federal and state regula- gram. In October, Cook County in Illinois BEACON MARSHALL COS.: Daniel tors to sign off on a complicated “Everything with Medicaid is very started enrolling individuals in a Pillar to director of marketing. legal maneuver that has the poten- complicated,” Mr. Corlett said. similar program — albeit on a larger tial to extend Medicaid coverage to If approved, the move would scale. The Cook County program EDUCATION as many as 30,000 people in Cuyahoga expand Medicaid coverage in Cuya- immediately would extend coverage CLEVELAND INSTITUTE OF MUSIC: County who otherwise couldn’t pay hoga County to those who don’t meet to 115,000 individuals who wouldn’t HaeSun Paik to piano faculty. for their health care. the typical guidelines for coverage. be eligible for Medicaid until it was NORTHEAST OHIO MEDICAL Previously, MetroHealth officials Children or the disabled normally expanded in 2014 as part of Presi- UNIVERSITY: Sergio A. Garcia to Adams Tomsic Smith said the so-called “waiver” likely are covered under Medicaid. The dent Barack Obama’s health care chief of staff; Barbara A. Tobias to would be approved in November, waiver would extend coverage to overhaul. director of human resources. and the health system subsidized county residents ages 19 to 64 who Unlike Illinois, Ohio has waffled by Cuyahoga County could begin are uninsured, not eligible for regu- on whether it would buy into Oba- ENGINEERING enrolling patients at the start of lar Medicaid and have an income at macare’s Medicaid expansion, which MANNIK & SMITH GROUP INC.: December. However, state and or below 133% of the federal poverty the U.S. Supreme Court ruling said Thomas M. Adams to senior roadway federal regulators are waiting for level. states could sidestep. However, Mr. engineer; Steve Tomsic to senior MetroHealth to get its back-end Because MetroHealth is a public Corlett said the state’s decision to bridge engineer. operations ready to handle the entity, it could use its $36 million proceed on the Medicaid expansion administrative burden of such a county subsidy to draw about $64 would have no bearing on the waiver. TECHNICAL ASSURANCE INC.: Cossick Repphun Benden complex program and to train its million in additional federal matching “One of the things that’s attractive Dan Jackson to senior roof consultant; staff on how to screen patients for funds to finance the Medicaid to (the Centers for Medicare & Jackie Spencer to database adminis- the program’s eligibility. expansion. Medicaid Services) and the state trator; Matt Walder and Adam “I wish I could predict a date when Expecting an influx of newly about this waiver is that it’s as much McHale to field technicians, roofs; we would be ready to go because I’d insured patients, MetroHealth this about care coordination as it is about Garrett Moeller to director of spatial be very popular around here, but year finished tweaking its primary the coverage,” he said. “How can we solutions; Carrie Ann Tripodo to we’re still plugging forward on this,” care operations at its satellite clinics improve care?” ■ contracts administrator; Bob Maslanka to field technician.

FINANCE Leach Murphy Chehade CHARTER ONE/RBS CITIZENS: Cheri Henson Smith to senior vice president and manager, CRA adminis- tration team. LAKE NATIONAL BANK: Amy Cossick to business development officer. FINANCIAL SERVICE

FAIRPORT ASSET MANAGEMENT: Nygaard Williams Appolito Lindsay Suster to client service representative. Rusnak to logistics manager; Mike SS&G: Ross Vozar to associate Alley Jr. to logistics coordinator. director; Chad Leikin to associate. WALLOVER OIL CO.: Patrick G. SS&G HEALTHCARE: Patricia Nygaard to regional sales manager, Baker to billing specialist. Northeast Ohio. WARFIELD & CO. CPAS LTD.: Edwin Repphun to tax consultant; MARKETING Barbara Benden to paraprofessional; QUEZ MEDIA MARKETING: Jae Richard Leach to manager. Sean Davis to administrative coordi- nator; Holly Mathews to graphic GOVERNMENT desginer; Tyler Thornton to marketing MEDINA COUNTY: Anne Murphy manager, web. to director of community relations, Auditor’s Office. NONPROFIT CLEVELAND ORCHESTRA: Mark HEALTH CARE Williams to director of artistic plan- KAISER PERMANENTE OHIO: Dr. ning. Nabil Chehade to president and ELIZA JENNINGS SENIOR CARE executive medical director, Ohio NETWORK: Chuck Viers to director Permanente Medical Group. of marketing. SURGICAL THEATER LLC: Peter R. Brumbergs to chief financial officer. SERVICE CLEVELAND MEDICAL MART & INSURANCE CONVENTION CENTER: Mike OSWALD COS.: Barbara Belovich Mangan to chief engineer; Ron to consultant. Willner to director, event services. PNC FAIRFAX CONNECTION: Col- LEGAL lette Appolito to executive director. BENESCH: David C. Weiner to attorney, litigation practice group. STAFFING MANSOUR, GAVIN, GERLACK & DIRECT RECRUITERS INC.: Jonah MANOS CO. LPA: Andrew C. Weiss to lead recruiter, plastics and Geronimo and Justin J. Eddy to flexible packaging practice area. associates. PLEVIN & GALLUCCI CO. LPA: UTILITY David R. Grant to chair, product FIRSTENERGY NUCLEAR OPER- liability. ATING CO.: Peter P. Sena III to WALTER & HAVERFIELD LLP: Tyler president and chief nuclear officer; S. Bobes to partner, real estate law Sam Belcher to senior vice president, group. operations and COO.

MANUFACTURING Send information for Going Places to MIDWEST MATERIALS: Kerrie A. [email protected]. 20121217-NEWS--7-NAT-CCI-CL_-- 12/13/2012 2:22 PM Page 1

DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 UH doc’s software LCCC students to pore over concrete New program will give LCCC opted to start the program factor,” Mr. Riddell said. gives hospitals ammo at Mr. Riddell’s urging. He said the The LCCC program will target program could lay the groundwork existing workers as well as college construction industry for innovations in the concrete students, who will sit in via video new specialists, could business moving forward. conference on classes taught by Erik for smarter decisions Like many trades, the concrete Robey, chairman of Rhodes State’s advance technology business suffers from a lack of new Civil Engineering Technology pro- Data make surgeries, processes more effective talent coming into the work force. gram. By GINGER CHRIST Because there are few concrete “We’re able now to put more By CHUCK SODER “The macro market [email protected] technology training programs — of these students out in different [email protected] the program at Rhodes State is one areas,” Mr. Robey said. “That’s the trends are very favor- Lorain County Community College of the few in the country, college beauty of what we’re doing. The Because of Dr. Conor Delaney’s able for analytics solu- next year will launch a program officials maintain — companies geographies and the demographics software, it was clear that the divi- tions.” aimed at filling a need in the con- are left without workers to replace are coming together. We’ll be able sion of colorectal surgery at Univer- struction industry. retiring baby boomers, Mr. Riddell to better find students to match – Nancy Fabozzi, principal sity Hospitals was onto something. The Concrete Technology program, said. these jobs.” analyst focusing on health care which will be offered in partnership “The old construction paradigm The partnership with LCCC is a In September 2011, the division IT, Frost & Sullivan started using a new anesthetic with Rhodes State College in Lima, from 20 years ago was to put a 20- beta test for future partnerships during operations. With the help of will allow students in Lorain to year-old next to a 50-year-old and with other educational institutions, the software, the group noticed that departments at UH were using the earn an associate of applied science you teach them,” Mr. Riddell said. which possibly will take place in a patients receiving it were recovering system already, the team behind degree with a major in concrete “There has not been that opportu- year or two, Mr. Robey said. more quickly and leaving the Socrates Analytics started promoting technology from Rhodes State. The nity for the younger workers to work “I think the future certainly is hospital 30% sooner, going home it throughout the hospital system program will start in the spring se- side by side with the older workers open to being able to possibly do on nothing but Tylenol. So, the divi- just two months ago. Several projects mester. because there’s been insufficient this in other places,” he said. sion decided to use the anesthetic using the system are under way, Students in the program will work.” Kelly Zelesnik, dean of LCCC’s during all surgeries. said Dr. Delaney, who added that become civil engineering technicians, The concrete industry in 2011 Engineering Technologies division, Now UH aims to market to other it helped another department skilled in testing concrete and how increased its production for the first said there’s little overhead involved hospitals the software that helped it determine that it wasn’t being reim- different chemicals can be manipu- time in six years, according to a in launching the program because make that decision. bursed for the use of expensive lated to advance the product, said report released in October by the LCCC already is equipped with Jeff Riddell, chairman of the Ohio The hospital system last month instruments. National Ready Mixed Concrete videoconferencing technology at Ready Mixed Concrete Association licensed the right to market the Dr. Delaney is the company’s Association. the Lorain Learning Center at St. and president of Consumers Builders software to a UH spinout called chairman, but it is run by an “We’re expecting that it will grow Joseph’s Community Center in Lorain. Supply, a ready mix concrete com- Socrates Analytics Inc. The software interim team from Reach Ventures fast enough to provide opportuni- In addition, Rhodes State is lending pany in Lorain. ■ is designed to help hospitals analyze LLC, a Chagrin Falls company that ties when you add in the retirement lab equipment to LCCC. various data. For instance, it can tell aims to help launch several busi- how many operations a surgeon nesses that analyze digital informa- conducted over the course of a tion. month, how long each surgery took, Socrates Analytics’ interim CEO, what equipment was used, the cost Kendall Wouters, is head of Reach of the equipment, how long the pa- Ventures, which could receive equity tients tended to stay and how much in the company if it hits certain they were charged. milestones. Socrates Analytics plans Or, it could be used to analyze why to hire a permanent management some patients cost more to treat team by the end of March. than others with the same condition. The company plans to market Or why some don’t respond as well the software to small and midsize to treatment that works for their hospitals, because many don’t have peers. analytics software and can’t afford Analyzing that data without some of the more expensive prod- special software is “pretty much ucts on the market. (SPVOECSFBLJOH
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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Good deal he former Cuyahoga County commissioners made a bad deal when they bought the Ameritrust complex back in 2005. County TExecutive Ed FitzGerald’s recommendation that the county sell the property to respected devel- oper Geis Cos. represents a splendid opportunity to turn that real estate lemon into lemonade. On its face, the proposed deal is a bitter drink for taxpayers to swallow. The county commissioners paid $21.8 million for the complex with the idea of FROM THE PUBLISHER transforming it into a centralized county headquar- ters. However, that initial price more than doubled after the county spent millions removing asbestos Another call for more collaboration from the property and buying an adjacent parking garage. his page regularly chides law- nese, including currency manipulation orders. Under its offer, Geis would pay $27 million for makers for their unwillingness to and duty evasion.” He said keeping Sens. Brown and Portman and their the complex — well below the county’s total outlay compromise or work together to duties on Chinese imports was “critical colleagues should be applauded for their for a property the commissioners never put to use forge solutions to the problems to ensuring that the steel pipe industry in coming together in a singular fashion. Twe voters face. Ohio remains intact.” Now if they could just get their colleagues because it became a financial sinkhole. However, Not so last week, when our two U.S. The letter was signed by, among other to act in the same way on the broader considering the state of the real estate market after senators, Rob Portman and Sherrod senators, Democrats Carl Levin of fiscal problems we’ve managed to bring the last recession and the large amount of office Brown, joined a group of their colleagues Michigan and Al Franken of Minnesota on ourselves. space sitting vacant in downtown Cleveland, it’s a in a denunciation of Chinese as well as Republicans Richard **** decent price. It’s $8.5 million more than anyone else activities that hurt Northeast BRIAN Shelby and Jeff Sessions of IT WAS ENTERTAINING, as always, to offered in the bidding competition the county set Ohio workers. In a letter, the TUCKER Alabama. read and listen to the reaction as this up to unload the property. group asked the Commerce Sen. Portman, also a Repub- year’s Rock and Roll Hall of Fame in- There are two sweeteners in the lemonade Mr. Department to maintain anti- lican, said the Ohio jobs were ductees were announced. Retiring Rock dumping duties and other pro- critical at a time of weak eco- Hall CEO Terry Stewart joked in an inter- FitzGerald hopes County Council will buy as that visions that stop Chinese steel nomic growth and stubborn view that now that Canadian rockers Rush body considers whether to approve the Geis pro- tube makers from deploying unemployment. “American man- were in, he could turn on his email again. posal. One is reviving a property at a key intersection unfair competitive practices in ufactured goods must be on a It’s a testament to the power of the in the city’s downtown that has sat empty for 16 the American market. level playing field with their Rock Hall as a centerpiece of the music years. The other is the trigger that Geis’ plans could Tubular steel products made global competitors, and I urge world that devoted fans are so emotional be for other development along a bedraggled seg- here for use in oil exploration — the Commerce Department to about their favorites. I understand. My ment of the Euclid Avenue corridor. especially in the shale plays — come protect these workers in Northeast Ohio wife was a big disco fan (as well as rock from V&M Star in Youngstown, Warren’s and across the country,” he said. and roll, country, etc.) and she loves Geis is no slouch at real estate development, Wheatland Tube, JMC Steel in Brook- The letter criticized Chinese tubular the Donna Summer choice. I still vividly and though it largely is known for its work in the field, and U.S. Steel in Lorain. steel makers with evading or circum- recall Rush in its first Cleveland appear- suburbs, it also has shown an increased interest in Sen. Brown reminded officials in the venting American trade protection orders, ance at the old Agora. urban projects. Its Hemingway Development division Commerce Department that oilfield and called on Commerce officials to We’re both happy, but to the fans of earned its stripes in Cleveland with its MidTown tubular steel means hundreds of jobs in work more closely with U.S. Customs other bands — like the devotees of our Tech Park, a groundbreaking, two-building complex our region “that are vulnerable to unfair and Border Protection officials to stop pro sports teams — well, there’s always ■ on Euclid that showed there is an appetite for office trade practices carried out by the Chi- any schemes to avoid existing U.S. trade next year. and lab space in the city’s Midtown neighborhood. Now Geis is ready to try its hand at a far bigger PERSONAL VIEW project with its planned investment of $180 million in the Ameritrust complex. Geis would raze two buildings and construct in their place a new, eight- story county administration building. It also has Avoid judiciary in trimming fed spending proposed turning the 29-story office tower into By DENNIS TEREZ Mr. Terez is a federal public defender for After he sobers up, our friend takes upscale apartments and restoring for retail or the Northern District of Ohio. stock of his vacation binge. He totals up another public use the grand Ameritrust rotunda, ur federal government is like $4,444 plus the dollars he drank away. plus renovating the adjacent Swetland Building as a three-legged bar stool. The mean is that you have a lot of company If we told him to straighten up and fly offices and/or apartments. kind a friendly drunk would use if you didn’t know those three branches. right, we probably wouldn’t point to the The life that the Geis proposal could bring to East to belly up to the bar. And at the More Americans can name The Three $40 he spent at the restaurant or the $4 Obar, he can’t control his wild spending Stooges than the three branches of our on his valet parking. We might instead Ninth and Euclid through the presence of 750 habits, buying drinks for everyone — government — by a wide margin. say to him that he blew too much dough county employees and potentially hundreds of new even paying IOUs when he runs out of Now, let’s take a look at our friendly on his liquid refreshment, his hotel room downtown residents could serve as a spark for cash. drunk’s household budget. In his sober and his jalopy. much-needed redevelopment on Euclid between Let’s take a look at the stool. Imagine moments, he earns $40,000 a year. On Congress is our friendly drunk who is East Ninth and East 13th streets. It is a stretch of its three legs are like the three branches one of his wild vacations he drank away, sobering up. Problem is, in analyzing Cleveland’s Main Street that continues to languish of our federal government: the executive, he spent $4,000 (10% of his salary) on a where its spending habits fell off the despite revival on each side of it. the legislature and the judiciary. By the jalopy that got him to his favorite vaca- tracks, it is looking at the cost of the dinner The proposal before County Council would let the way, if you didn’t know those were the tion spot; $400 on two nights at a fancy and the valet parking instead of the costs names of the three branches of our hotel for him and his wife (1% of his that really mean something. And it is county put what Mr. FitzGerald correctly has called government, don’t feel too bad. Well, salary); $40 for a dinner for him and his doing so by weakening the bar stool — “the Ameritrust fiasco” behind it. We urge its speedy actually you should feel rotten about that, wife (0.1% of his salary); and $4 tipping our federal government — by weakening approval in the new year. since those three branches are the very the valet who parks his jalopy (0.01% of one of its three legs. genius of our Founding Fathers. What I his salary). See VIEW Page 9 20121217-NEWS--9-NAT-CCI-CL_-- 12/13/2012 3:16 PM Page 1

DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

THE BIG ISSUE Are you concerned about the U.S. going over the ‘fiscal cliff’ at year’s end if President Obama and Congress can’t hash out an agreement on how to reduce the deficit? GLOBAL REACH LOCAL RESOURCE

Let us show you how we have successfully completed real estate transactions on every DONNA CONRY DENNIS ROBERTS BRIAN DEAN PATRICK SMITH continent of the globe. Shaker Heights Mayfield Heights Broadview Heights Mentor I’ve heard some talk there I hope they’ll figure some- I sure hope they find an I am. Congress should isn’t a real crisis on Dec. thing out. Am I concerned? agreement because I don’t have productivity standards. 31, and they have a few Yes. From what I under- know what my taxes are If I was as unproductive as CORPORATE SERVICES GROUP extra weeks. … Do I want stand about it, everyone’s going to look like next those guys are, I would 216-861-7200 them to go past Dec. 31? taxes would go up, and year. lose my job. [email protected] Definitely not, but they’re particularly those folks in www.ostendorf-morris.com politicians. the middle class aren’t in a position to withstand any additional expenses.

➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com. Wednesday, February 27, 2013 AM AMs"REAKFAST  AMs0ANEL$ISCUSSION %MBASSY3UITESAT2OCKSIDE NASA Glenn plan focuses on core areas Succession Strategies

By CHUCK SODER in those four areas while also freeing force, which consists of more than for Privately Held Businesses: [email protected] up time to focus on winning business 3,000 government employees and What you think you know, but don’t… and how much from private companies, according contractors. However, focusing on NASA Glenn Research Center to outgoing center director Ramon the center’s core strengths should that could cost you in your succession strategy aims to narrow its focus. Lugo III and deputy director Jim help it endure anticipated budget The Cleveland center has put Free. Mr. Free will step into Mr. Lugo’s cuts because it will be able to com- PRESENTED BY together a reorganization plan that, position at the end of the year. pete more effectively for work, both if approved by NASA headquarters, Today, employees with expertise from NASA and private companies, would move some employees into in one area sometimes work in dif- Mr. Lugo said. different departments and different ferent departments, which makes it NASA Glenn over the years has to REGISTRATION: Contact Jessica D. Snyder buildings in an effort to help the harder to collaborate, they said during some degree diluted its abilities by at 216-771-5388 or [email protected] center focus on its four core areas of a wide-ranging discussion last week trying to work in too many different expertise: power, propulsion, com- with a group of reporters. areas, Mr. Lugo said. The reorgani- www.CrainsCleveland.com/BREAKFAST munications and advanced materials. Mr. Free said he doesn’t think the zation, if approved, would help the The plan would allow NASA Glenn reorganization will have an impact center rebuild a critical mass of exper- to put more resources toward work on the size of NASA Glenn’s work tise in its four main focus areas. ■ LETTERS Shale mag View: Target bulk of spending continued from PAGE 8 The impacts are very real for all of In the latest budget discussions us. Court officials across the country drills into in this supercharged post-election predict, for example, the temporary season, some in Congress want to suspension of federal civil jury trials, reduce the budget of our judiciary. the furloughing of federal court and If no action is taken, our federal probation employees, and a reduction hot topic judiciary’s budget will be reduced in in federal court security officers. the New Year by roughly $600 million. If you’re not a litigant in federal ■ Great job on the new Crain’s Shale Let there be no mistake — that’s court, lucky you. But your employer publication! It captures the eastern a heck of a lot of money. But if you or others on whom you depend Ohio business revolution story very love this country and you think the might be. And regardless, justice well and contributes to the excitement genius of our Founding Fathers was delayed is justice denied. the oil and gas activity is causing for indeed that, then you have to make The furloughing of employees our part of the world. sure you spend enough cash to keep who supervise ex-offenders when As a longtime reader of Crain’s, I that genius running. they come out of prison affects all of am not surprised that your organiza- The entire judiciary’s budget — I our communities. And I have never tion gave a strong start to covering mean the whole thing, from the heard anyone suggest our court- the news of this welcome new industry person who empties the waste bas- houses are so safe we should reduce for Ohio. We needed it very much to kets at our gorgeous Carl B. Stokes security in them. Oh, and for those keep our state in the forefront of the U.S. Courthouse to Chief Justice who live in the western part of economic recovery that is really hap- John Roberts’ salary — is under $8 the state, sequestration will likely pening. billion. That’s a heck of a lot of translate into further delays in the I am a former chief executive officer money. But in terms of our entire construction of the much-needed of the Cleveland Area Board of Real- federal budget, it doesn’t even Toledo federal courthouse in your tors and a vice president of public amount to 0.2%. community. affairs and administration of the That’s right — not even one Spending on our third branch of Ohio Association of Realtors. The oil measly percentage point. Heck, not government is like our fellow’s and gas story signals a bright future even a half of a measly percentage expenditure on dinner and the valet for Ohio real estate. point. And Congress now wants parking. Congress should be looking Thomas E. LaRochelle to reduce that further by slightly at the 99.8% of the federal budget CEO more than a half-billion dollars. That rather than dithering with the 0.2% Stark County Association of Realtors means that despite 83 vacancies in that represents the entire funding of our federal court system, we are one-third of our government. WRITE TO US telling our federal courts — that Take away the third leg of the bar Send your letters to: Mark Dodosh, important third leg of our bar stool stool, and our friendly drunk quickly editor, Crain’s Cleveland Business — they may need to fire people and finds himself on the floor. I don’t e-mail: [email protected] cut budgets even further. want to see our government fail. ■ 20121217-NEWS--10-NAT-CCI-CL_-- 12/14/2012 5:11 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012

6517 Bessemer Ave., Cleveland TAX LIENS ID: 34-0858987 Office 28,300 Sq. Ft. Date filed: Oct. 19, 2012 The Internal Revenue Service filed tax to file complete return, corporate Type: Employer’s withholding 16035 Industrial Parkway liens against the following businesses income Amount: $9,782 in the Cuyahoga County Recorder’s Amount: $16,658 Office. The IRS files a tax lien to protect York Gym Inc. Records Central Inc. the interests of the federal government. 7389 State Road, Parma 4700 Lakeside Ave., Cleveland The lien is a public notice to creditors ID: 34-1714634 ID: 34-1035430 that the government has a claim Date filed: Oct. 9, 2012 Date filed: Oct. 19, 2012 against a company’s property. Liens Type: Employer’s withholding, Type: Employer’s withholding reported here are $5,000 and higher. unemployment, failure to file complete Amount: $15,827 Dates listed are the dates the docu- return, corporate income ments were filed in the Recorder’s Architectural Products Amount: $8,326 Office. Development Inc. Furnished -- Price far below market Scimone Enterprises Inc. Creative LIENS FILED 6605 Clark Ave., Cleveland Former PNC/National City Comptroller Building ID: 34-1790635 Awards & Impressions Ceilings 9 ft. - Bottom of Deck 18’9” (1) Dock M A & K Enterprises Inc. Date filed: Oct. 23, 2012 26405 Broadway Ave., Near to Cleveland Hopkins Airport, between I-480 & I-71 700 Turney Road, Bedford Type: Employer’s withholding Oakwood Village ID: 34-1097195 Amount: $13,593 ID: 34-1627419 CALL 216-469-6170 [email protected] Date filed: Oct. 23, 2012 Date filed: Oct. 23, 2012 Type: Employer’s withholding, Nott-One Inc. Nottingham Auto Body Type: Employer’s withholding unemployment 19425 Saint Clair Ave., Cleveland Amount: $7,710 Amount: $17,049 ID: 34-1577544 Date filed: Oct. 9, 2012 C & C Investors Inc. R. Heard Painting Inc. Type: Employer’s withholding, 4411 Clark Ave., Cleveland 25021 Forbes Road, Oakwood Village unemployment ID: 34-1655137 HALEMAGAZINE.COM ID: 34-1808763 Amount: $11,767 Date filed: Oct. 19, 2012 Date filed: Oct. 9, 2012 Type: Failure to file complete return The promise of shale drilling. Type: Employer’s withholding, failure Imperial Glass & Door Co. Amount: $6,445 The power of Crain’s. News, insight and analysis of shale drilling in Ohio Fight: ‘Reshoring’ so far only a trickle continued from PAGE 3 metal parts, metal should be priced manufacturing operation to China “When you start talking about pretty consistently around the and consequently reduced its vol- world if it’s the same material,” Mr. ume of business with City Plating Gaskin said. by 98%. He would not identify the Yet in the past, that hasn’t been customer. the case. However, the reshoring Mr. Steve Schler, founder of ProMold- Solganik wants to see isn’t a trend S Gauer, a Tallmadge-based maker of yet. Instead, it’s more of a “trickle,” molds and dies for the plastics and according to John Colm, executive rubber industry, has been outbid by director of WIRE-Net, a Cleveland- Chinese competitors dating back based manufacturing advocacy to 2002. He even lost a roughly group. $250,000 project, for which his com- “It’s good news, believe me,” Mr. pany did the design and develop- Colm said. “I think Cleveland is well ment, to a company in China that positioned to benefit from the offered to build the project for less reshoring trend, but we have a long than ProMold’s material costs. way to go.” “If the Chinese are buying steel from the world market, we should Applying the pressure be paying the same price,” Mr. Mr. Colm said he thinks it’s up Schler said. to manufacturers to continue to ad- Mr. Schler is encouraged by signs vocate for strong trade policies, that the Chinese are raising their including confronting China about labor rates and increasing the value of its currency valuation. their currency. In its Nov. 27 report, “The currency issue is just one of the U.S. Treasury said the renminbi a host of issues, but it is by far the since June 2010 has appreciated by most significant,” he said. 9.3% — or by 12.6% factoring in For that reason, the Precision inflation. Metalforming Association and the “The trend is in the right direction National Tooling and Machining right now, but there’s a long way to Association, with which WIRE-Net go,” Mr. Schler said. “So keeping the works, on Nov. 29 issued a state- pressure on is definitely warranted. ment decrying the U.S. Treasury’s … They still have a huge advan- failure to cite China as a currency tage.” manipulator. Labeling China a currency ma- Shared pain nipulator would lead to a lengthy Mr. Solganik of City Plating investigation by the World Trade would like to see a greater trend Organization, with a direct impact toward reshoring, or bringing man- in the United States that wouldn’t ufacturing located overseas back to be felt for potentially six years, Mr. the United States. He said it will Gaskin of the Precision Metalforming happen if China doesn’t offer what Association estimated. And that he considers to be unfair advan- delay is why manufacturing associ- tages to manufacturers operating ations are continuing to push the there. U.S. government to take a strong Because Mr. Solganik’s business stand against China, so that when deals with heavy parts, its customer the U.S. economy recovers, manu- reach only extends to neighboring facturers won’t be at a disadvan- and nearby states due to the tage, he said. expense of shipping items. So, if its U.S. Sen. Sherrod Brown, D-Avon, customers’ business disappears to agrees. China, City Plating feels the effects, “While China flouts trade laws, too. the U.S. Treasury Department con- “We’re really dependent on local tinues to give China a free pass supply chain,” Mr. Solganik said. when it comes to its currency ma- “So, if it’s cheaper to manufacture nipulation,” Sen. Brown said in an overseas, that directly affects the email. “Meanwhile, American man- metal finishing business.” ufacturers are paying the price. Ad- He recalled one large customer dressing China’s currency manipu- for which City Plating provided tin lation is critical to our economic plating services moved its entire recovery and for job gains.” ■ 20121217-NEWS--11-NAT-CCI-CL_-- 12/13/2012 2:28 PM Page 1

2012NEWSMAKERS

2012 was both a year of firsts and a THE ROSTER year of change. ■ JIM BENNETT, Cleveland Medical Mart We welcomed the state’s first casino, & Convention Center and steps were taken to improve the ■ DAN GILBERT, Horseshoe Casino Cleveland, Bizdom city’s schools as well as the direction of ■ ERIC GORDON/FRANK JACKSON, Cleveland the convention center and medical Metropolitan School District PAGE 12 mart and our beloved Browns. ■ THE HARRINGTON FAMILY, University Hospitals PAGE 12 And that’s just the beginning. ■ JIMMY HASLAM, Cleveland Browns PAGE 12 Behind each of the region’s big ■ MARCY KAPTUR, U.S. House of Representatives stories, of course, are people who are PAGE 14 ■ AUBREY MCCLENDON, Chesapeake Energy helping to drive that news. PAGE 15 In this section, we take a look back at ■ BARBARA SNYDER, Case Western Reserve some of those whose work helped University PAGE 15 ■ TERRY STEWART, Rock and Roll Hall of Fame shape the past year’s headlines in and Museum PAGE 16 Northeast Ohio. ■ ZEV WEISS, American Greetings PAGE 16

In his nine months with MMPI, TRACKING BENNETT’S 2012 JIMBENNETT the 69-year-old Mr. Bennett has DANGILBERT reshaped the $465 million project, ■ April 19: MMPI announces mammoth project overshot the Cleveland Medical Mart moving the emphasis to the the appointment of Jim Bennett as market. Horseshoe Casino & Convention Center 235,000-square-foot convention senior vice president for the Cleve- ■ Oct. 23: Mr. Bennett told Cleveland, Bizdom center under the Mall and reimag- land Medical Mart and Conven- Cuyahoga County Council that the By JAY MILLER By STAN BULLARD ining the four-story medical mart at tion Center. health care community in Northeast [email protected] [email protected] Ontario Street and St. Clair Avenue. ■ May 21: Crain’s reports that Ohio would like to see the building Most importantly, as the year is Mr. Bennett has been soliciting the called something other than the s well as his tweets to prod im Bennett, who has put a ending, MMPI had leases in hand for thoughts of community and medical “Medical Mart,” to better reflect its better performance, Cava- new, more reassuring face more than half the leasable space in industry leaders on a new strategy new focus. It might be called the liers players should also on the convention center and the building and the number of con- for the complex, and what he was “Health Innovation Center,” he said. take a cue from owner Dan medical mart under construc- ventions booked had risen from 27 at hearing was that “medical mart” no ■ Oct. 31: County Executive Ed Gilbert’sA business behavior. Mr. Jtion on Cleveland’s Mall, has the start of the year to 59 by Dec. 10, longer describes what will go on FitzGerald announces the signing of Gilbert just keeps shooting. However, been playing a role in the city’s with 31 proposals being considered. inside the building. two major medical mart tenants — in this risk-taker’s case, the shots revitalization for more than 20 Those 59 conventions are esti- ■ Oct. 11: The developer of a GE Healthcare and the Cleveland are multimillion- years. mated to book 97,000 hotel room competing medical mart plan in Clinic. Mr. Bennett says his company dollar business Indeed, in nights and give the regional economy Nashville said it would end its effort now has signed leases from 25 ten- ventures that 1989, as he a $100 million boost, said Dave to develop its 1 million-square-foot ants for 50,000 of the 95,000 may help trans- reflected on the Johnson, the complex’s director of complex. Mr. Bennett offered his leasable square feet in the medical form downtown old Terminal public relations and marketing. condolences, but suggested the mart building. Tower concourse Among the conventions booked are Cleveland and that was being the Ohio Music Educators Associa- his hometown of transformed into tion, which will bring 9,000 attendees Detroit. Tower City a year in 2015, 2017 and 2019. key tenants, including GE Health- tive great confidence in its suc- More are on Center and the The new business and marketing care, Johnson Controls and cessful launch next year. He has the way. Next new sports palaces that were on the plan, Mr. Bennett believes, is a key Phillips Healthcare. demonstrated expertise in convening, year, Mr. Gilbert’s Rock Gaming horizon at what would become to the turnaround. It hasn’t hurt that the project listening and collaborating with and partner Caesars Entertainment Gateway, Mr. Bennett told Fortune Instead of trying to sell medical itself has moved along — on national industry leaders who have Corp. in Rock Ohio Caesars already magazine, “You need big symbols supply vendors on leasing their own budget — with little controversy. in the process become anchor are investing $150 million to open a of physical progress. They are showrooms, Mr. Bennett listened to MMPI was even able to announce tenants for this initiative.” racino at Thistledown Race Track in momentum-building and pride- health care industry leaders on a earlier this year that the buildings ■ Jeffrey Applebaum, Thompson North Randall and build a $400 building. You can’t move a city new advisory panel and shifted the would be ready for occupancy two Hine LLP attorney and Cuyahoga million casino in Cincinnati. That’s without physical splashes.” marketing to emphasize thematic months ahead of the planned County’s construction adviser on quite an encore after investing $350 Since April, Mr. Bennett has been areas where vendors can collaborate September 2013 opening. the project: “By the first of (2012), million into readying the Higbee construction of the facility was in Building to serve as Ohio’s first guiding the city’s latest physical with each other to create, say, an What he said symbol of progress as senior vice operating room of the future or great shape, but it was time to gaming palace this year at Horseshoe president of MMPI Inc., the devel- state-of-the-art patient exam rooms. ■ Oct. 29, Crain’s: “When you review the business and marketing Casino Cleveland. oper and operator of the tradeshow His vision also includes show- have a plan and a strategy, people plan of the medical mart concept. Insiders expect the founder and complex. A Youngstown native, Mr. rooms where early stage medical respond better. … There is much That was addressed by the advisory chairman of Quicken Loans Inc., Bennett came to Cleveland in 1982 products companies — from local greater willingness to commit.” committee impaneled by Ed which has a major downtown pres- FitzGerald and the hiring of Jim ence, to undertake more projects in with the McKinsey & Co. consulting companies to foreign startups — What others are saying firm, where he specialized in health could show off their developing Bennett in April. Since that time, Cleveland in the future. Mr. Gilbert care management. He later served products. In May, he said he was ■ Baiju Shah, CEO, Biomotiv with Jim’s leadership on the continues to vow to build a larger as a senior executive vice president talking to trade representatives from LLC and a member of the med- medical mart side, tremendous casino on Huron Road near Higbee’s of KeyCorp and then went on his China and Israel, who expressed ical mart advisory board: “Jim progress had been made in devel- and the Q. The project that promises own as a management consultant interest in the idea. Bennett’s presence gives all who oping the business concept and to be one of downtown’s biggest with Bennett Group LLC. The shift has brought in several have been involved with this initia- developing the marketing plan.” See GILBERT Page 12 20121217-NEWS--12-NAT-CCI-CL_-- 12/13/2012 3:40 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS 2012NEWSMAKERS DECEMBER 17 - 23, 2012

Mr. Gordon also early this month ERICGORDON presented a 33-page document, HARRINGTON “The Cleveland Plan: Four-Year Implementation Strategy,” which FRANKJACKSON outlined plans for the school dis- FAMILY trict overhaul. Cleveland Metropolitan A final version, following com- University Hospitals’ School District munity input, is expected to be Harrington Project for presented to the board for adoption Discovery & Development By AMY ANN STOESSEL in mid- to late-January. [email protected] By CHUCK SODER What they said [email protected] ayor Frank Jackson and ■ Mayor Jackson, March 12, Cleveland Metropolitan Crain’s: “… In order for us to have t makes it easier to attract Schools CEO Eric Gor- any chance or likelihood of passing money from big donors when don this year seemed a levy, we have to demonstrate to you can put their names in Mto do the impossible. huge letters on the side of a TRACKING GORDON, JACKSON THROUGH 2012 the public they will get a different After introducing a radical school Ibuilding. outcome than they are getting now transformation plan early in the ■ Feb. 6: Mayor Frank Jackson proposed changes to Ohio law that and that there is accountability for University Hospitals didn’t have year, they successfully set the presents to the teachers union and would only apply to Cleveland. It what they pay for.” that advantage. foundation for and pushed through other officials his plan for transforming was approved — after debate and ■ Mr. Gordon, July 16, Crain’s: Fortunately, the hospital system a staggering four-year, 15-mill levy Cleveland’s schools. some compromise — by the “It really is about having a plan in already had a close relationship in a school district plagued with ■ April 12: David Quolke, state Senate, 27-4, and House, place that voters can depend on for with the Harrington family of foreclosures and high poverty levels. president of the Cleveland Teach- 78-16. different ways of getting better Hudson, which spent the last two Messrs. Jackson’s and Gordon’s ers Union, announces along with ■ July 18: A 15-mill levy is results with their tax dollars.” decades turning Edgepark Medical efforts to redirect the course of the Messrs. Jackson and Gordon during proposed for the November ballot. It What others are saying Supplies in Twinsburg from a 40,000-student urban school district a meeting at Cleveland City Hall is estimated to cost the owner of an struggling pharmacy into a big are considered transformational in that the union had agreed to sup- average-priced Cleveland home — ■ Terry Ryan, vice president for distributor of medical supplies. educational circles nationwide. port the plan, which helped in get- $64,000 — $294 more a year in Ohio programs and policy, Last February, UH announced In addition to eliminating ting legislative approval. Still, Mr. taxes. Thomas B. Fordham Institute: the creation of The Harrington Pro- seniority as the sole criterion for Quolke was quoted as saying, “This ■ Nov. 6: Voters approve by a “Cleveland has become a national ject for Discovery & Development, determining teacher layoffs, the agreement is far from perfect.” margin of 57% to 43% the four-year leader in the school reform conver- an ambitious effort that aims to plan called for a “portfolio ■ July 2: Gov. John Kasich levy. It is expected to bring in up to sation. … It’s being watched by change the way new drugs are approach” to school management, signs into law a bill allowing for $77 million more a year for the dis- both critics and supporters alike.” developed and commercialized. which would give school principals Cleveland schools’ transformation trict, which has an operating budget ■ Ronn Richard, CEO, The The Harrington family — husband greater responsibility over budgeting plan to move forward. Legislative of $670 million — and a $65 million Cleveland Foundation: “Cleveland and wife Ron G. and Nancy Har- and hiring. approval was needed since the plan deficit. is fortunate to have such a visionary rington, their daughter, Jill, their It also allowed for some charter mayor and schools CEO. They crafted son, Ron M., and his wife, Lydia — schools to receive money from the a nationally significant education helped launch the effort with a district’s levy for their programs. Of course, such change rarely Issue 107, school leaders have plan, spearheaded the passage of $50 million donation. University Indeed, the transformation plan comes without controversy. The wasted no time. groundbreaking state legislation Hospitals is contributing $100 was so dramatic it required law- 6,000-member Cleveland teachers’ Steps already have been taken to needed to implement the plan, and million, and it aims to raise another maker approval since it required union initially pushed back against restore in 2013 a full school day for rallied the community to support $100 million. changes to Ohio law that only the plan, expressing disappoint- kindergarten through eighth the district’s first levy in 16 years to Had it not been for the Harringtons, would apply in Cleveland. ment that the Greater Cleveland grades; increase exposure to art, execute the plan. The Cleveland the project still might be an idea Gov. John Kasich — a vocal Partnership had been involved in music and physical education in as Foundation is proud to support sitting on the shelf, said Dr. Achilles supporter of the plan — in July its creation while its members had many schools as possible; and add them every step of the way. We Demetriou, chief operating officer signed it into law after legislative not. reading, mathematics and science believe their efforts will lead to a at UH. approval, a step that Mayor Jackson Eventually, though, the union intervention where determined. remarkable transformation of our “I don’t think we could have considered critical to passing the offered its support, which helped According to a district news city’s school system, which will pulled it off,” Dr. Demetriou said. levy that is expected to generate up in gaining the reform plan’s release, $6.8 million in tax dollars open up magnificent new opportu- Today, the project is well under to $77 million more a year for the approval in Columbus. will be used to replace the lost nities for our children.” way. The $50 million went entirely district. Since the November passage of instructional time. toward financing the project’s non-

gaming concern is how it handles TRACKING GILBERT’S 2012 GILBERT the quest to demolish the Stanley JIMMYHASLAM Block Building on Ontario Street. ■ April 26: Cleveland Cavaliers for a spring 2013 opening. continued from PAGE 11 When the casino did not gain end 2011-12 season with a win-loss ■ Aug. 16: Bizdom, a startup Cleveland Browns building projects after workers complete control of the building, it record of 21-45 as they fall to the business accelerator created in finish the Medical Mart and Cleve- By JOEL HAMMOND tore down its neighbors and built Chicago Bulls. Sports commenta- Detroit and brought to Cleveland by land Convention Center and Ernst [email protected] around it. A messy end that leaves tors again call the Cavs “lowly.” Dan Gilbert unveils a half-floor office & Young Tower. preservationists wounded would ■ May 14: Horseshoe Casino at his 250 Huron Road building that Horseshoe Casino Cleveland be a big negative among many Cleveland opens in the Higbee provides co-working space for entre- n July 27, the Cleveland already gave the city a big boost pluses Mr. Gilbert and his team Building downtown, which sports a preneurs invited to its three-month Browns were a day away with a plethora of visitors and the have scored here. $350 million update to the building training program. from a training camp in addition of thousands of jobs. To Local media outlets often reflect and in gaming devices. Ohio’s first ■ Nov. 14: Horseshoe Casino which they had plenty of ready the casino, Mr. Gilbert on Mr. Gilbert’s popularity in Oquestions to answer, including casino employs 1,600 people. Cus- Cleveland announces 2.6 million bought downtown Cleveland real town, which so far has survived tomers line up in droves outside its guest visits in first six months. The whether rookie running back Trent estate as if playing Monopoly. poor Cavs performance in the two entrances, which lasts for weeks. venture said it is responsible for Richardson and quarterback With the purchases of the Ritz- post-LeBron James era. ■ June 6: Plans are unveiled for a 26,000 room nights at downtown Brandon Weeden could meet lofty Carlton hotel and the 250 Huron That said, media already see the racino at Thistledown Racetrack in hotels and its rewards program expectations. building below it, he entered the passion of new Browns owner North Randall, adding 1,500 video generated more than $500,000 in One question they weren’t city’s hotel and office business Jimmy Haslam as fresh competi- lottery terminals, a 60-seat restau- meals at participating downtown expecting, though, was whether sectors. A $10 million update is tion for Mr. Gilbert in the hearts of rant and other improvements. Look restaurants. they’d have a new owner. That day, planned for the Ritz. The casino Clevelanders. It will give Mr. the team confirmed that Randy is one of the reasons first-floor Gilbert a run for his money. Lerner was in discussions to sell the retail is on the upswing downtown. team to Jimmy Haslam III, then the In the meantime, he’s bought What he said What others are saying wish we had 10 more like him.” CEO of Knoxville, Tenn.-based Pilot numerous properties in downtown ■ Oct. 30, USA Today: ■ Robert Simons, professor, ■ William West, partner, Corp., which operates travel centers Detroit. “Looking back now, that probably coordinator, graduate certificate Ostendorf-Morris Co.; chairman, nationwide, and a minority owner Mr. Gilbert also is adding other was not the most brilliant thing program in real estate, finance Downtown Cleveland Improve- of the Pittsburgh Steelers. sports teams and associated ven- I’ve ever done in my life,” referring and development, Levin College ment Corp.; executive board A week later, Mr. Haslam was tures here. He is aiding job and to his promise to fans in 2010 that of Urban Affairs, Cleveland State member, Downtown Cleveland signed, sealed and delivered for $1 wealth creation here through the the spurned Cavs would win an University: “From our perspective, Alliance: “People in town have billion, and introduced to Cleve- Cleveland office of Bizdom, a NBA title before LeBron James Dan Gilbert has a huge impact on gotten tired. You get a new guy in land media at team headquarters in startup business investment and won it with the Miami Heat. The Cleveland. Through all of his town with new ideas and he does Berea. coaching effort that has graduated King got his ring last spring. enterprises and the jobs he has things. He likes to win. It’s amazing Since, Mr. Haslam has given the three classes. ■ May 13, Las Vegas Review created from the casino and new to me what he is doing here as well Browns a much-needed jolt of Mr. Gilbert is also known as a Journal: “There is community sports teams he’s brought to the as in Detroit. He’s a first-class energy, even if the on-field product giver. He underscored that by pride and Cleveland pride in being market, he probably has as much operator, from the casino in Hig- isn’t appreciably improved. He’s making the pledge this year to the state’s first casino. … Cleve- economic impact on downtown as bee to the new parking garage and said publicly that a new naming leave half his fortune to philan- land needs a great win. This city Cleveland State University. Not leased parking lots. He’s kept his rights sponsor for Cleveland thropy, a move that puts him in has hardworking, great people only does he have a lot of employ- word to downtown restaurant op- Browns Stadium would be in place company with business icon here. They’ve had the rug pulled ees here, he’s added them here erators in terms of not competing for the 2013 season, a deal that Warren Buffett. out from under them so many through new ventures, so they are with them, and through rewards likely will bring the team multiple A big test for Mr. Gilbert’s times.” gold jobs rather than silver ones. I sending business their way.” millions of dollars per season. 20121217-NEWS--13-NAT-CCI-CL_-- 12/13/2012 5:10 PM Page 1

DECEMBER 17 - 23, 2012 2012NEWSMAKERS CRAIN’S CLEVELAND BUSINESS 13

TRACKING THE HARRINGTONS’ 2012

■ Feb. 27: University Hospitals the region, to become BioMotiv’s CEO. announces the creation of the Har- ■ Sept. 5: BioMotiv announces rington Project for Discovery & it has raised $21 million in equity Development, as well as the $50 financing from both UH and the million donation from the Harrington Harrington family. family. ■ Dec. 5: The Harrington ■ Sept. 1: Baiju Shah leaves his Discovery Institute awards its first longtime role as president of BioEn- 10 grants. Among the recipients is teprise Corp., a Cleveland nonprofit Dr. Sanford Markowitz of Case that assists health care companies in Western Reserve University.

profit arm, The Harrington Discov- the University Hospitals Harrington ery Institute, which two weeks ago Heart & Vascular Institute. gave 10 $200,000 grants to physi- In 2010, the parent company, cian-scientists trying to develop HGI Holdings Inc., was sold again, new drugs at a time when pharma- this time to private equity firms ceutical companies are scaling Clayton Dubilier & Rice and GS back early stage research and Capital Partners, which is owned by development efforts. Goldman Sachs. The purchase price In addition to the grants, the was roughly $850 million, according institute also aims to connect to a report from Dow Jones LBO recipients with industry experts, Wire. At the time, the company investors, access to laboratories, employed about 800 people. grant writing services and other resources to help ensure their What they said discoveries become products as ■ Ronald G. Harrington, in a quickly as possible. statement released in February The project also has a for-profit by University Hospitals: “We’d like arm, BioMotiv LLC, a Shaker to assure physician-scientists that Heights company that is scouring their discoveries are carried further laboratories worldwide in a quest along to completion. Secondly, to license promising technologies we would like to create in the and develop them to the point Cleveland business community an where investors or drug companies investment into the health care are willing to commercialize them. arena. And last, but not least, is to The Harringtons invested in that save lives.” part, too: The family and UH have invested a total of $21 million in What others are saying BioMotiv. Ron G. Harrington is the ■ Dr. Achilles Demetriou, chief company’s chairman. operating officer, University He and his wife bought Hospitals: “It’s easier to give The Harrington Edgepark in 1990, and soon after money for buildings or an institute family, from their children joined the company. because you can see it. Here, right: Ron and The family in 2007 sold a majority they’re supporting a concept.” Nancy with stake in Edgepark’s parent company ■ Baiju Shah, CEO, BioMotiv daughter, Jill to The Jordan Co., a New York LLC: “They’re just incredible indi- (middle), and son private equity firm, for an undis- viduals that have given so much and daughter-in- closed amount. A year later, the both in the development of their law, Ron and Harringtons donated more than company … and their contribu- Lydia $22 million to what now is called tions back to the community.” PHOTO PROVIDED

CRAIN’S TOP WEB STORIES OF 2012 A look at the top stories featured ■ June 25: “United execs laud says Tony Grossi crossed the line with on www.CrainsCleveland.com this efforts to back local hub.” Randy Lerner tweet. year, with URLs for you to relive http://tinyurl.com/bz868nj http://tinyurl.com/b9h3lfh the top news: ■ June 4: “Scott Wolstein named ■ Jan. 26: Potbelly sandwich ■ March 5: “WKYC-TV names co- CEO of Starwood Retail Properties.” shop to set up shop in downtown anchor for 6 p.m. and 11 p.m. news- http://tinyurl.com/b53gc77 Cleveland casts.” ■ Jan. 26: PD managing editor http://tinyurl.com/a3r9hwr http://tinyurl.com/akhz7d8 ■ Jan. 4: “Report: WKYC morning news anchor Mark Nolan to leave station.” http://tinyurl.com/bepz4ba Largest national staffing firm headquartered in ■ Aug. 2: Safeguard Properties to North East Ohio. Call today to see how we can help acquire Bank of America’s field service operations.” you improve your overall staffing experience. http://tinyurl.com/bz9r2xq NEWSCOM ■ June 25: “Longtime radio exec Browns owner Jimmy Haslam (left) chats with general manager Tom Heckert at plans launch of new Cleveland rock a preseason game. Mr. Heckert’s future is one of the major decisions Mr. Haslam station.” faces. http://tinyurl.com/a8zrtt4 ■ He’s met with some of the most notably Columbus, to recon- March 7: “Former Cleveland league’s most successful owners, nect with fans and perhaps even Browns beat writer Tony Grossi leaves including New England’s Bob engage the business community as The Plain Dealer.” Fewer than 1% of North American staffing firms with Kraft, the New York Giants’ John Browns partners. http://tinyurl.com/afcsopb revenue exceeding $100M annually have been named to Mara and others to learn best He’s even paired with his wife’s ■ Jan. 13: “Winking Lizard owner to the 2012 Best of Staffing™ Client and Talent Lists. Best practices. He told Cleveland City media company, RIVR Media, on a open Lizardville Bar in Cleveland’s Council in September — a week Travel Channel show, “NFL Road Galleria.” Of Staffing is presented by Inavero and CareerBuilder. after stepping down from his CEO Tested: The Cleveland Browns,” http://tinyurl.com/avo3qxv post at Pilot in order to focus more that will explore how the team ■ Feb. 13: “Baldwin-Wallace College www.nescoresource.com www.talentalley.com time on the Browns — that “every- travels and will expand the team’s names new president, reveals pending thing is on the table” in terms of brand. The show began Dec. 4. name change.” improvements or changes to be A self-described football man — http://tinyurl.com/artfxgs made at Cleveland Browns Stadium his father, Jim, who founded Pilot, to turn it into a year-round venue. played at Tennessee, where the ■ June 8: “The Taylor Cos. In a meeting with Crain’s on family remains involved in announces plans to go out of business Halloween, Mr. Haslam said he’d fundraising efforts — Mr. Haslam after nearly 200 years.” look to markets outside Cleveland, See HASLAM Page 16 http://tinyurl.com/ajpwkd6 20121217-NEWS--14-NAT-CCI-CL_-- 12/13/2012 3:15 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS 2012NEWSMAKERS DECEMBER 17 - 23, 2012 MARCYKAPTUR United States House of Representatives

By SCOTT SUTTELL Republicans were effective, in [email protected] the partisan sense, in redrawing the state’s congressional districts. ortheast Ohio’s congres- Although the overall vote in con- sional delegation will lose gressional races was about 50-50, three familiar faces in Rep. Kaptur will be one of just four 2013 — U.S. Reps. Dennis Democrats in the state’s congres- NKucinich, Steve LaTourette and sional delegation, compared with Betty Sutton — but through the 12 members of the GOP. magic of redistricting, it gains the Rep. Kaptur, a Toledo native and veteran voice of longtime Rep. the longest-serving woman in the Marcy Kaptur of Toledo. House, brings lots of insider Rep. Kaptur, 66, has been a knowledge of Washington to her member of the House of Represen- new district. Most importantly for tatives since 1982. But her road to Northeast Ohio, perhaps, she’s the a 16th term in Congress was altered most senior Democrat on the dramatically by the redistricting House Appropriations Committee, process, which forced her to face which makes government spending off with liberal icon Rep. Kucinich decisions. Rep. LaTourette was on in a Democratic primary in the that committee, too, so Rep. redrawn 9th District. The district Kaptur’s work there takes on runs from the West Side of Cleve- greater importance to making sure land through Lorain, Erie and Ohio doesn’t lose congressional Ottawa counties into eastern Lucas clout. County and parts of Toledo. She’s also a member of three The primary was a tough fight, important House subcommittees: NEWSCOM and she won it handily, taking Defense, Agriculture, and Trans- Marcy Kaptur will be one of just four Democrats remaining in the state’s congressional delegation. about 56% of the vote. This fall’s portation/Housing and Urban general election against Republican Development. member on the Appropriations seen as factors in the race,” sional debate: “All you have to do Samuel Wurzelbacher — “Joe the However, House Democratic Committee. Although Rep. Kaptur according to TheHill.com. is drive over to General Motors’ Plumber,” of 2008 fame — was a leaders earlier this month chose had seniority on the panel, “her Rep. Kaptur ran against Rep. transmission plant, if you go to the rout, as Rep. Kaptur garnered 70% Rep. Nita Lowey, D-N.Y., over Rep. past independence from leadership Nancy Pelosi of California to be Chrysler Jeep plant, you will see of the vote. Kaptur for the position of ranking and stance on abortion rights were minority leader in 2002. And, ac- that all former hires have been cording to the National Abortion brought back on, and in fact they Rights Action League, Rep. Lowey are hiring off the street. The recov- has a 100% ranking on abortion- ery of the automotive industry has related issues, while Rep. Kaptur is been astounding.” ranked as a “mixed-choice,” at NEWS. INSIGHT. ANALYSIS. 70%. (Rep. Kaptur was a holdout, What others are saying for a while, on the 2010 health care ■ reform bill because of concern David B. Cohen, professor of about abortion language that political science and fellow of the eventually was resolved.) Ray C. Bliss Institute of Applied DELIVERED RIGHT TO She is something of an economic Politics at the University of Akron: populist and opposed, for example, “Marcy Kaptur has really earned the North American Free Trade the respect of people in both Agreement. Rep. Kaptur “has long parties. She’s a workhorse and a argued for the need for political policy wonk. And maybe most reform, calling on her own party to importantly, given the political YOUR INBOX grow less dependent on fundraising situation today, she’s a more inde- and to better listen to the working pendent spirit in Congress.” class,” according to a Washington ■ Chris Redfern, chairman, SIGN UP FOR OUR E-NEWSLETTERS Post profile from earlier this year. Ohio Democratic Party: “There A member of the Congressional are auto suppliers all throughout Progressive Caucus, Rep. Kaptur the lakefront who would have been has described herself as part of the devastated without the work of “non-money wing of our Democ- Marcy Kaptur and others to rescue ratic caucus.” the auto industry. … Clevelanders What she said will find her to be accessible and hard-working and completely TODAY ■ Oct. 26, 9th District congres- committed to constituent service.” CrainsCleveland.com/email TRACKING KAPTUR’S 2012 ■ March 6: In a matchup of Republican opponent, Samuel House heavyweights, U.S. Rep. Wurzelbacher — you know him as Crain’s eNewsletters are a valuable complement to the in-depth business Marcy Kaptur of Toledo easily de- “Joe the Plumber” — with more feated fellow Rep. Dennis Kucinich than 171,000 votes cast in the 9th. coverage found in each week’s issue of the paper. of Cleveland in the Democratic pri- ■ Dec. 4: The House Democra- mary race to represent the new 9th tic caucus passed over Rep. District. The gerrymandered district Kaptur, the most senior member of runs from the West Side of Cleveland the House Appropriations Com- NEW IN 2013! through Lorain, Erie and Ottawa mittee, for ranking Democrat on the counties into eastern Lucas County influential panel. U.S. Rep. Nita and parts of Toledo. Rep. Kaptur Lowey of New York outpolled Rep. won about 56% of the vote. Kaptur in a closed-door meeting of ■ Nov. 6: Rep. Kaptur won more the Democratic caucus’ Policy and than 70% of the vote to defeat her Steering Committee.

WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.” 20121217-NEWS--15-NAT-CCI-CL_-- 12/13/2012 2:23 PM Page 1

DECEMBER 17 - 23, 2012 2012NEWSMAKERS CRAIN’S CLEVELAND BUSINESS 15 AUBREY TRACKING MCCLENDON’S 2012 ■ January 2012: Chesapeake was a conflict of interest. Energy, with Mr. McClendon as ■ May 2012: Spurred in part by MCCLENDON chairman and CEO, announces it is activist investor Carl Icahn’s Chesapeake Energy selling a 25% interest in its Utica request, Chesapeake’s board of shale holdings to France-based directors announces that Mr. Mc- By DAN SHINGLER Total SA for $2.3 billion. Chesa- Clendon will step down as chairman. [email protected] peake had previously announced it ■ November 2012: Chesapeake spent $1.3 billion acquiring all of its reports a $2 billion loss, caused by eckless risk addict or the Utica leases up to that point. the writedown of the value of its oil genius and driving force ■ April 2012: Reuters reports and gas reserves as prices for behind the shale gas boom that Mr. McClendon had been using natural gas fell, but the company and sweeping Ohio and the his own personal stake in Chesa- Mr. McClendon say they are still con- RU.S.? peake’s oil and gas wells to secure fident that the Utica play will live up Chesapeake Energy CEO Aubrey more than $1 billion in loans for to its expectations as a major McClendon might be both. And, himself, presenting what some said source of production. while he may not be from Northeast Ohio, evidence of his firm’s impact can be found all over the region NEWSCOM reportedly instrumental in getting our 1 million plus acres there. So these days. Mr. McClendon removed from the we’re thrilled with the Utica. … If Mr. McClendon is known for board, but so far he has not asked you’re in that (wet gas) corridor, starting his career as an oil and gas for further changes after recently which stretches from Columbiana land man, signing up landowners to giant controls 70% of all shale gas holders complained in 2011. disclosing his larger stake. down through Carroll and Harrison mineral rights leases with energy leases in the state. Such issues prompted Chesa- In the meantime, Mr. McClendon (counties) and maybe a little fur- companies eager to drill in places Many industry observers give peake’s board to announce that has adopted a low profile — partic- ther south from there, you have like Oklahoma and Texas in the Mr. McClendon and his company Mr. McClendon would be replaced ularly for a man used to the limelight, results that are as good as any from early 1980s. credit for getting the shale boom as chairman, and he stepped down whether it’s on the cover of a na- any play in the country.” going in the U.S., as well as for from the board in June. No sooner tional business magazine or prowling Some say that’s his main gift — What others are saying and that Chesapeake Energy, which bringing the Utica to prominence had he left the board room that new the sidelines of an Oklahoma City he founded in 1982, is still today as when his company became known media reports surfaced claiming Thunder NBA game. (He owns ■ Billionaire activist investor much a mineral rights trader as it is for spending more than $1 billion that he used company employees approximately 20% of the team.) Carl Icahn, in an open letter to an oil and gas driller. on leases in the play in 2011 and for his own personal projects and But even his critics, for the most Chesapeake’s board in May: “We Chesapeake does indeed still make 2012. that he did the same with the part, give him credit with having recently had dinner with Aubrey millions of dollars, if not billions, in Mr. McClendon, however, remains company’s private aircraft. To put the business nerve necessary to McClendon to suggest a manner buying and reselling interests in a highly controversial figure. He it mildly, it was a rough year, PR- jump-start shale gas drilling in the by which that credibility gap might mineral rights, including in Ohio was blamed for pushing down the wise, for Mr. McClendon. U.S. — and for being among the be filled. The company has where it sold a portion of its hold- price of Chesapeake’s stock in For the most part, the controver- first to recognize the potential of publicly identified several actions ings for about $2.3 billion earlier 2008, when margin calls forced sies have subsided, but not before Ohio’s Utica shale and bring it to including reduced spending and this year at a large profit. But, along him to sell more than 30 million they got the attention of billionaire national prominence. asset sales which will relieve some shares of the company’s stock, activist investor Carl Icahn, who of the funding gap, yet the board the way, Chesapeake also became What he said the second-biggest natural gas which dropped nearly 40% in price disclosed last summer that he had still seems to miss the point. We driller in the U.S. — not to mention that same week. He also sold the amassed a 7.6% stake in Chesapeake ■ November conference call believe that a management team the biggest player, by far, in Ohio’s company maps from his personal — and who upped that stake to with securities analysts: “I think and a business plan without strong Utica shale play, where by some collection and had to buy them about 9% of the company’s stock our Utica wet gas acreage is between oversight and accountability is estimates the Oklahoma City-based back for $12 million when share- in November. Mr. Icahn was 300,000 and 400,000 acres out of doomed to fail.”

BARBARA TRACKING SNYDER’S 2012 ■ May 30: CWRU broke ground SNYDER on a $50 million 82,000-square-foot student center, the Tinkham Veale Case Western II University Center. Reserve University ■ June 1: CWRU for the second consecutive year breaks its By GINGER CHRIST fundraising record, raising $134.5 [email protected] million, which is $8 million more than was raised the previous fiscal ince taking the helm of Case year. ■ Western Reserve University Aug. 10: CWRU receives a in July 2007, Barbara Snyder $64.6 million grant — the Clinical has pushed the university to and Translational Science Snew levels of fundraising, develop- Award — from the National Insti- ment and student interest. Not only tutes of Health to advance medical that, she also has become a well- breakthroughs. ■ respected voice and face for CWRU Sept. 12: CWRU for the third in the education community. straight year surpasses its record The former Ohio State University number of applicants, receiving ap- executive vice president and plications from 14,800 prospective provost has led the university’s students. ■ climb back to operating with a Sept. 24: The Cleveland surplus — something with which it FILE PHOTO/ Foundation and the Mt. Sinai MARC GOLUB struggled in the early 2000s — and Health Care Foundation each has propelled the university’s committed $10 million — the fundraising efforts. largest grants either foundation has In her first year as president, Ms. respectively. by $10 million grants from the other supporters. These individu- made to date — to CWRU for a new Snyder led the university in June CWRU also in 2012 was awarded Cleveland Foundation and the Mt. als and organizations recognize $50 million, 160,000-square-foot 2008 to adopt its first strategic plan, the largest grant ever received in Sinai Health Care Foundation. the remarkable work of our faculty medical school. the University Plan, in nearly 20 Northeast Ohio. The $64.5 million In addition to that, the number and students, and have made years. Under that plan, the university grant, known as the Clinical and of students interested in the school investments that will allow even graduate of the law school at Case committed to increase outside Translational Science Award, recog- has doubled since Ms. Snyder greater advances in the years to Western, I am especially proud of investments in research, involve nized the university’s five-year assumed the role of president. The come.” all Barbara has accomplished and I university in 2012 received 14,800 alumni and enroll students of collaboration with area medical What others are saying look forward to seeing where her higher quality. facilities to take medical discoveries applications and, since Ms. Snyder leadership will take the university Now, more than four years later, from the laboratory to the patient. became president, has climbed ■ Jim Petro, chancellor of the in the years ahead.” the university is achieving all of Under Ms. Snyder’s lead, CWRU five places in U.S. News and World Ohio Board of Regents: “As ■ C. Todd Jones, president of those goals and is on track to has started a concerted effort to Report’s annual ranking of colleges president of Case Western Reserve the Association of Independent continue that success. improve the university’s facilities, and universities, coming in at No. University, Barbara has had a Colleges and Universities of Ohio: In October 2011, CWRU including both its student center 37 on this year’s list. tremendous impact on the univer- “She’s recognized as a significant sity and the surrounding commu- launched a $1 billion capital cam- and its medical school. The $50 What she said leader in higher education in Ohio. paign, which, as of Nov. 30, had million student center, for which nity. She has a dynamic vision of And it’s more than just because raised $774 million. And the univer- ground was broken in May, was ■ June 1, Crain’s Cleveland where she wants this university to Case is one of the largest and most sity in fiscal years 2011 and 2012 aided by a $20 million donation by Business: “We continue to be be, and is taking the steps to get it academically elite campuses in our broke fundraising records, raising The Veale Foundation and the $50 humbled and honored by the there, as evidenced by the plans state. It goes beyond that. It’s also, $126.5 million and $134.5 million million medical school was buoyed generosity of our graduates and for the new medical school. As a in a sense, personal presence.” 20121217-NEWS--16-NAT-CCI-CL_-- 12/13/2012 3:54 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS 2012NEWSMAKERS DECEMBER 17 - 23, 2012 TERRYSTEWART TRACKING STEWART’S 2012 ZEVWEISS TRACKING WEISS’ 2012 ■ Jan. 17: The Rock Hall’s ■ May 11: Terry Stewart ■ May 21: American Greetings Rock and Roll Hall of library and archives is opened to the announces he would retire from his American Greetings unveils first designs for its $150 Fame and Museum public. The archives, which are located role at the Rock Hall, noting in an Corp. million to $200 million headquarters at Cuyahoga Community Col- interview that he was “retiring from project in Westlake, revealing ren- By TIMOTHY MAGAW lege's Metropolitan Campus, the Rock Hall — not retiring from By MICHELLE PARK derings of a 655,000-square-foot [email protected] house more than 200 collections, work or life.” He joined the Rock Hall [email protected] building wrapping a third-floor including the personal papers of in 1999. square courtyard. At the time, erry Stewart might not performers, journalists, critics, histo- ■ Dec 3: The Rock Hall intro- hile it’s not known yet construction was projected to begin dominate a stage like Bruce rians and more. duced Greg Harris, the organiza- whether a special in early 2013 and be complete by Springsteen or walk with ■ April 4: The Rock Hall unveiled tion’s current vice president of committee will accept mid-2014. Mick Jagger’s swagger, but its “walk of fame” — a series of development and government an offer from the Weiss ■ Sept. 25: The Weiss family, familyW and related parties to take Tthe departing CEO of the Rock and plaques embedded in the sidewalk relations, as its next president and including Zev Weiss, CEO, and Roll Hall of Fame & Museum knows throughout the city that showcases CEO. Mr. Stewart courted Mr. Harris American Greetings Corp. private, Jeffrey Weiss, president and chief rock music. the names of Rock Hall inductees. to join the Rock Hall staff after the the family’s proposal makes it clear operating officer, reveals in a letter Perhaps more ■ April 14: The Rock and Roll latter had served 10 years with the that company to the American Greetings board importantly, he Hall of Fame holds its 27th induction National Baseball Hall of Fame. He leadership be- that they want to buy all of the knows how to ceremony at Cleveland Public rebuffed the initial offer, but Mr. lieves it has a company’s outstanding shares that run a museum Hall. Inductees included the Red Stewart came calling a few years plan that will they don’t already own at $17.18 — as he’s done Hot Chili Peppers, the Beastie later, and Mr. Harris ultimately better serve the apiece and take the company pri- since 1999 — Boys, Guns N’ Roses, Faces, decided to move to Cleveland in company. vate. that pays homage Donovan and others. 2008. News of the ■ Oct. 22: The board of Ameri- to the celebrated offer from can Greetings forms a special art form. And descendants of committee of independent directors 2012 was a banner Mr. Stewart’s legacy likely will be upon his May 11 announcement the company’s to consider, among other things, year for the Rock Hall, and much of felt at the Rock Hall for years to he would be step down from his founder to buy up all of the stock the go-private proposal by the the success could be chalked up to come, as he courted his successor, duties at the Rock and Roll Hall they don’t already own came in Weiss family and related parties. Mr. Stewart’s leadership. Greg Harris, to the museum as vice of Fame & Museum: “The Cleve- September in a letter from the ■ Nov. 28: American Greetings In 2012, the Rock Hall unveiled president of development and land we came to and have lived in family, including CEO Zev Weiss, to announces that it is delaying its $6.9 million worth of enhancements, government relations after the for 14 years is going to be different the greeting card company’s board headquarters project at Crocker which were the most dramatic latter had served 10 years with the than the Cleveland coming next. of directors. Since then, the board Park in Westlake in light of the upgrades since the museum National Baseball Hall of Fame. We’re in the middle of this great has set up a special committee to proposed go-private offer from the opened along Cleveland’s lakefront Mr. Harris made a point during his renaissance. We’re thankful to consider the go-private offer, and the Weiss family. The company reas- in 1995. Among the many upgrades introduction to say he would carry have been here, live here and be Weisses have revealed in another sured in a news release that it still were improved way-finding on Mr. Stewart’s work with the able to see the next stage as it letter that they have financing intends to develop its new world throughout the exhibits and new staff he had built during his tenure. involves.” commitments totaling $742 million headquarters at the site and said to make the deal a go. interactive displays. Mr. Stewart, who prior to running What others are saying the delay will be short and have no The upgrades were completed the museum was a top executive That letter revealed that some big material adverse impact on the just in time for the 2012 induction at Marvel Entertainment Group, ■ Frank Jackson, mayor of the names — among them, KeyBank, company. ceremonies, which were held in hasn’t been explicit about his city of Cleveland: “He was very PNC Bank and Bank of America — Cleveland’s Public Hall and plans beyond life at the Rock Hall. good for the museum itself and are behind the Weisses, noted Scott brought star power of the likes of He hinted in an interview with very good for the city as a whole. Fine, a professor of banking and American Greetings noted in Red Hot Chili Peppers, Guns N’ Crain’s after he announced his re- Plus, he knows it. He’s a walking finance at Case Western Reserve public filings that it expects to not Roses, Donovan and others to tirement that he may write a book. encyclopedia for rock and roll. He University Weatherhead School of recoup millions of dollars in unse- Cleveland. Since 2009, the inductions Others in the community have has a passion for it, and he can Management. cured accounts receivables based have been shared between New suggested he and his massive break it down so people can “Some very prominent financial on information about Clinton York City and Cleveland, with record collection may be involved understand it.” institutions are committing a lot of Cards’ ongoing administration, a Cleveland hosting the festivities in a new music club on Waterloo ■ Cindy Barber, co-owner of money to the long-term vision that procedure similar to Chapter 11 every three years. Road in Cleveland’s Collinwood the Beachland Ballroom: “What- the Weisses have,” he said. “What bankruptcy. Moreover, under Mr. Stewart’s neighborhood as part of local ever comes next for Terry, it will be we (the public) don’t see are the What he said watch, the Rock Hall achieved restaurateur Alan Glazen’s plans significant for Cleveland and the details of the plan that will keep this ■ consistent profitability and closed a to transform the entertainment music scene in general. He loves company a vital, vibrant part of our May 21, prepared statement $35 million capital campaign, district into an indie-rock mecca of music and goes to a lot of shows. A landscape for another hundred after the company unveiled plans which allowed for the museum’s sorts. lot of people appreciate his honest years.” for a new Westlake headquarters renovations and the establishment love of music and look forward to Mr. Fine says he’s surprised (the project later was delayed): of its new library and archives, What he said what Terry gets himself involved in American Greetings hasn’t gone “Crocker Park is a vibrant retail which also opened this year. ■ In an interview with Crain’s next.” private already, considering its center, with a variety of stores in biggest competitor — Hallmark step with the latest trends and Cards Inc. — is private and its stock appealing to a wide range of con- isn’t heavily traded. The company sumers. This will create an energy TRACKING HASLAM’S 2012 faces strategic challenges, he said, and synergy that will inspire our HASLAM and those challenges require long- ability to create products that meet term solutions, not the short-term the needs of our consumers and ■ June: Cleveland Browns Stadium. continued from PAGE 13 things the public markets might retailers.” spokesman Neal Gulkis emphatically ■ Sept. 19: Mr. Haslam meets a has shown an intimate knowledge want. ■ Sept. 25, go-private offer to denies a report from Philadelphia caucus of Cleveland City Council of the game and a willingness to The go-private offer makes it all the American Greetings board of that the Browns could be for sale. members and tells them that “every- talk X’s and O’s with the media. the more likely that one of North- directors, written along with his ■ July 27: Browns confirm that thing is on the table” when it comes One thing he hasn’t addressed is east Ohio’s hallmark companies — brother, Jeffrey Weiss, the company’s Randy Lerner is in discussions with to stadium improvements and the future of second-year coach Pat pun intended — is likely to stay put, president and chief operating Jimmy Haslam III, a Pittsburgh making the venue a year-round Shurmur and general manager Tom Mr. Fine added. If a strategic buyer officer: “Since its founding over a Steelers minority owner and CEO of option for events. Heckert, whose roles have been based somewhere else was proposing century ago, the descendants of Pilot Corp., to sell the team. ■ Oct. 16: NFL owners unani- constantly analyzed since Mr. to buy American Greetings, the risk Jacob Sapirstein, and now the Weiss ■ Aug. 3: The deal is official, for mously approve Mr. Haslam’s pur- Haslam took over. of the company’s operations being family, have guided American $1 billion, and Mr. Haslam is intro- chase of the Browns at a meeting in Both men were hired by former moved elsewhere would be greater, Greetings, including after it became duced to the media at team head- Chicago. team president Mike Holmgren, he added. a publicly traded company in 1958. quarters in Berea. That day, Mr. ■ Oct. 31: In a wide-ranging inter- who Mr. Haslam announced on Already, though, Northeast Ohio After careful consideration, we Haslam says “it’s a marketing world” view with Crain’s, Mr. Haslam talks of Oct. 16 would retire from the team. had reason to believe the company have concluded that the best when asked about potential business his desire to push into Columbus to At that same news conference, from wasn’t going anywhere: After a course of action is for American opportunities, including a naming re-engage with fans and perhaps lure Chicago, where he was unanimously search for a new headquarters site, Greetings to return to its roots. ... rights deal for Cleveland Browns new business partners to Cleveland. approved as Browns owner, Mr. the company in 2011 committed to We believe that $17.18 per share Haslam said Joe Banner, a longtime staying in Northeast Ohio in a move is a compelling price and that Philadelphia Eagles executive, the Browns, and it’s not just in but they also bought into the DNA to Crocker Park in Westlake. How- American Greetings public share- would be taking over the CEO role. Cleveland. … This is a big state, of Cleveland.” ever, the company recently delayed holders will find this proposal Messrs. Haslam and Banner have with a lot of people and a lot of ■ Joe Roman, Greater Cleve- that project in light of the go-pri- attractive.” land Partnership: vate offering. said evaluations of all personnel successful businesses, and we “It’s pretty What others are saying will take place at the end of the sea- need to get them more involved obvious, but he’s taking a 24/7 In another multimillion-dollar son, and Browns fans are anxiously with the Browns.” approach to the Cleveland Browns. move in 2012, American Greetings ■ Scott Fine, professor of awaiting decisions and whether the That means not only on the field banking and finance, Case Western What others are saying in May acquired all of the senior team will go through yet another and off the field in terms of how secured debt and then in June Reserve University Weatherhead overhaul. ■ Cleveland City Councilman the Browns are viewed, but how acquired certain assets of Clinton School of Management: “It takes Joe Cimperman: “His background the Browns could be catalytic in courage for the Weiss family, which What he said Cards and related brands, including is farther south (Tennessee), but some other things. about 400 stores. Those moves were doesn’t need to do this, to put their ■ Aug. 3, CrainsCleveland.com: he’s one of us. I thought (Cleve- “His enthusiasm is contagious. an effort to protect American Greet- money where their mouth is. They “We have one mission and one mis- land Cavaliers owner Dan Gilbert) He’s hitting the town at a time ings’ interests since Clinton Cards are not only continuing to own the sion only: to bring winning football was a once-in-a-century guy, but when other things are really working PLC — one of American Greetings’ company, they’re adding all this back to Cleveland.” struck gold with the two of them. well, and that additional shot in the largest customers — had been financial risk. There’s going to be a ■ Nov. 5, Crain’s: “We’re selling They bought into the franchise, arm for the town has been amazing.” struggling. boatload of debt.” 20121217-NEWS--17-NAT-CCI-CL_-- 12/14/2012 1:42 PM Page 1

DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Charities: Uncertainty surrounding tax deduction may spur giving

continued from PAGE 1 of mid-December had seen the in the last week of the year if Con- A query to various charities donors, who often give out of intense advisers and one on Dec. 5 for number of new accounts year-to- gress takes action that provides a around town reveals that some — gratitude for medical care they or roughly 50 donors. date rise at least 40% from the like clear tax liability picture. the Cleveland Foodbank, for one — someone they know received, he said. Standing at the front of the room period last year, estimated Laura are on pace to raise this year about Year-to-date giving for the Cleve- during both presentations was Steve Malone, director of gift planning. Gifts with benefits what they did last year from indi- land Foundation was up through Gariepy, who co-chairs the estate “December’s always crazy for us While tax breaks are not the only vidual donors. Others, however, Dec. 12 over the like period in 2011, planning group at Hahn Loeser & anyway,” Ms. Malone said. “I think reason people give to philanthropy, have raised more money. Among though Ms. Ridolfi said she couldn’t Parks LLP, a Cleveland-based law firm. there is going to be a higher element Ms. Malone noted they are “often them are College Now Greater disclose how much until the foun- Mr. Gariepy said a majority of his of crazy. We’re still getting calls the icing on the cake.” Without the Cleveland and the Cleveland Clinic, dation’s year-end close. clients are exploring options for now with families that are trying to incentive to give, charities fear peo- which reported that its year-to-date Like many in the nonprofit accelerating into 2012 the charitable do stuff with illiquid assets. Those ple will give less. donations as of mid-December sector, Ms. Ridolfi said she hopes giving they might do in future years. assets are not that easy to transfer “Some people — not all people were up in the range of 12% to 15% lawmakers will leave the charitable One client who normally gives to a donor-advised fund. — do take into account the tax from the like period in 2011. deduction as is. $100,000 is doing five times that “(Donors) feel pressure to act,” benefits of the gift, and the larger the Nelson Wittenmyer, vice chairman “The charitable deduction is amount this year to take advantage she added. “They feel they have to tax benefit, the more they will give,” of the Clinic’s Philanthropy Insti- important to how we will do busi- of the tax climate he knows exists do something, but they’re not Mr. Gariepy said. “What you see on tute, isn’t convinced the increase ness in the future,” Ms. Ridolfi said. today, Mr. Gariepy said. really sure what the true result is the horizon is that if larger gifts are has much, if anything, to do with As government support to many “That’s a way of taking advantage going to be if they don’t do anything.” no longer fully deductible, people tax uncertainty. When it comes to people decreases, she said, “I think of the certainty of the 2012 deduc- Certified financial planner Mr. will take that into consideration medical charitable causes, tax ben- the need for services that nonprof- tion versus taking the risk of a limited Hurst anticipates a flurry of giving and perhaps give less.” efits are less of a motivator for its provide will only increase.” ■ 2013, 2014 deduction,” he said. “There are changes in the offing that could impact and reduce the tax benefit of making large charitable gifts next year.” Stuck in neutral While Mr. Gariepy’s clients either are continuing to give as they usually have or are giving more, other advis- ers say they see donors at a standstill. “A lot of clients are kind of ham- Stay ahead of your strung,” said Jess Hurst, president and partner at the Millennial Group, an Akron wealth advisory firm. “A finances, so your business number of them have delayed or not given when they normally would have just because they don’t know can keep heading what to do at this point in time.” The wait-and-see attitude couldn’t come at a worse time, said Mr. Hurst, in the right direction. who also sits on the board of two Akron nonprofits, OPEN M, a faith- based ministry that delivers food and health care through free clinics to the needy, and Weathervane Play- house. “We’ve kind of got a perfect storm out there from a charitable stand- point,” he said. “Our clients who are donors to charities are sitting out there with a lot of uncertainty, which leads to inaction, and you’ve got charities who are trying to support and help people in need who have substantial needs at this time of year. The combination of those two has created a really bad scenario for some nonprofits in the area.” Treasury Management ‘A higher element of crazy’ from FirstMerit. Many donors deciding to give There’s a lot to manage when it comes to your business. That’s why more this year to dodge the uncer- tainty of next year are doing it you need the right tools to stay on course. FirstMerit Treasury Management through donor-advised funds, Mr. Gariepy said. Donors who set up such has comprehensive services that help you manage your receivables to improve funds take the charitable deduction cash flow, control your payment cycle to optimize your working capital, this year, but distribute their funds in amounts they choose to charities and automate your routine business activities. We’ll provide the tools that they choose into the future. True to the trend Mr. Gariepy keep you heading in the right direction, directly toward your goals. describes, interest in such funds is up at two local organizations that firstmerit.com/youfirst administer them. Since the November election, the Cleveland Foundation is fielding a greater number of calls from advisers and donors asking about opening new donor-advised funds or adding money to existing ones, said Kaye Ridolfi, the foundation’s senior vice president for advancement. Ms. Ridolfi said she isn’t aware of a lot of people giving way more or TO LEARN MORE, CONTACT: way less, but she does hear them Sean Richardson, NorthCoast President & CEO, debating their timing. at 216-802-6565. PERSONAL BUSINESS COMMERCIAL WEALTH “The question is, should I do it in December, or should I wait until next year?” she said. Follow the latest market trends Member FDIC The American Endowment Foun- @firstmerit_mkt 674_FM12 dation, a Hudson public charity that administers donor-advised funds totaling about $275 million for roughly 1,600 families nationwide, as 20121217-NEWS--18-NAT-CCI-CL_-- 12/14/2012 12:20 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 17 - 23, 2012 Duke: Firm stems vacancy tide at Rockside properties

continued from PAGE 1 dirty word to stock analysts and CEO, said disposition activity had most of an empty building on Rock from CBRE Group. North Olmsted a year ago. investors, the real estate investment been relatively slow the first nine Run in Seven Hills with a 50,000- Tom Fox, a Jones Lang senior The office buildings on and near trust began selling properties to months of the year, but that “you square-foot lease to Cambridge vice president who heads its Cleve- Rockside languished as the real es- reduce leverage and consolidate will see overall disposition activity Group, a unit of Sedgwick Claims land agency business, and David tate boom of early last decade went into core markets. pick up by the end of the year.” Management Services. Browning, managing director of bust and the 2008 Great Recession Today, Duke is pursuing a goal of Last December, Duke sold to No information on the pricing of CBRE’s Cleveland office, both de- hit home. The last prospective deal reducing its suburban office hold- Blackstone Real Estate Partners, an the Rockside Road properties was clined comment on Duke’s potential for the buildings on Rockside fell ings to 25% of its portfolio from the affiliate of the Blackstone Group available. However, Ryan Moore, sale of the properties. through in 2007 and Duke called current 30% and concentrating on private equity firm in New York, 79 an office investment sales specialist Jim Clark, a Columbus-based a timeout on the sales effort in 2008 industrial and medical office build- suburban office buildings — or at the Independence office of the Duke senior vice president who when a different buyer lost its ings and build-to-suit opportunities. nearly 10 million square feet of office Marcus & Millichap Investments oversees Cleveland operations, financing. In a Nov. 1 conference call with space — for $1 billion. brokerage, said the portfolio is likely declined comment. In an email, Mr. However, in recent months, investors, Duke executives suggested Tom West, director of office to be sold at a discounted price. Clark said, “As a publicly held com- multiple prospective buyers have they would conclude a major prop- services at the Cresco real estate Word of a looming sale comes as pany, Duke Realty cannot discuss reviewed the properties, insiders say. erty sale by the end of this year. brokerage in Independence, said a bit of a surprise. In what appeared any development, leases, acquisi- Originally, Duke sought to rede- high vacancy in the 20% range has to be a sign it would remain in the tions, or dispositions that may or ploy capital to areas with stronger A bit of foreshadowing continued in the Rockside Road market longer, Duke shifted the may not be pending.” economies and higher rents. How- According to a Seeking Alpha office corridor, but the Duke prop- leasing and property management Och-Ziff did not return two ever, as the real estate credit crunch transcript of the conference call, erties gained traction this past year. assignment for the portfolio to phone calls and an email by Crain’s took hold and leverage became a Dennis Oklak, Duke chairman and For example, Duke in October filled Jones Lang LaSalle’s Cleveland office deadline last Friday, Dec. 14. ■

sition, according to a company ures, the 2012 sales total would more spokesman. Of the 700 people who than double the $5.5 billion sold in Lighting: LED demand growing globally work at Nela Park, about 100 are 2010. engineers. In the industrial market, sales of continued from PAGE 3 to light streets, parking lots and retail products, Ms. Sylvester said. Sales “We’ve practically doubled the LED lighting products grew by 17% “This acquisition was all about stores. Although the company offers of those products soon should start size of our engineering team,” Mr. worldwide in 2012 versus 2011, but growth … and getting to big cus- LED bulbs to replace the incandes- to shrink as LEDs replace them, she Briggs said. the market climbed by 70% in North tomers faster,” she said. cent bulbs most people use in their noted. America, she said. Demand has Revenue from GE Lighting’s LED homes, they have yet to be widely “The market’s moving very World of growth been driven partly by incentives business already is growing about adopted because of what Ms. quickly,” she said. Demand for LEDs is on the rise, that utilities in some regions are 50% to 70% annually, Ms. Sylvester Sylvester described as “a price point Between 60% and 70% of GE especially among industrial cus- giving to encourage companies to said. Today it accounts for about challenge.” Even though the LED Lighting’s product development tomers, said Vrinda Bhandarkar, use less energy, Ms. Bhandarkar said. 25% of GE Lighting’s sales, up from bulbs use less electricity and are budget goes toward LED products, director of research related to LEDs “It’s really taking off,” she said. 15% a year ago, she said. That figure expected to come down in price, they up from about 20% four years ago, at Strategies Unlimited, a marketing Ms. Bhandarkar added that GE should jump to 35% next year, she remain many times more expensive said Steve Briggs, general manager research and consulting firm in Lighting found a solid company in added. The unit does not release its than incandescents. of global product management for Mountain View, Calif. Albeo, which has 65 employees and sales figures. The popularity of commercial GE Lighting. The overall size of the Worldwide sales of LED lighting also makes LED fixtures for non- and industrial LED lighting prod- budget has grown, too. The company A switch at the switch products are expected to hit $12.3 industrial businesses. ucts has slowed sales growth related has added about 200 people to its billion for 2012, up 26% from $9.8 “They have been really good at Today, most of GE Lighting’s to GE Lighting’s fluorescent and global engineering team since 2009, billion in 2011, according to Ms. producing quality products,” she LED sales come from products used high-intensity discharge lighting through internal growth and acqui- Bhandarkar’s research. By her fig- said. ■ REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denese Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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DECEMBER 17 - 23, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Mr. Egre engineers rock song. A favorable wind DECEMBER 10 - 16 Grammy winners will be announced Feb. a Grammy nomination 10. — Timothy Magaw blows WIRE-Net’s way The big story: Cuyahoga County Executive ■ What do Bruce Springsteen, Taylor Swift ■ There was a fair amount of credit given Ed FitzGerald recommended to County Council and Bruce Egre — a music instructor at Case that the county sell for $27 million the Amer- The price isn’t right, last week to Lake Erie Energy Development Western Reserve University and the Cleve- Co. when it secured about $4 million in itrust complex in downtown Cleveland to devel- land Institute of Music — have in common? and probably won’t be oper Geis Cos., which in turn would build an federal money to develop a wind energy Grammy nominations. farm off the Lake Erie shoreline. But the eight-story county administration building at the ■ ’Tis the season for holiday sales, and After 25 years working as an audio engi- West Side manufacturing advocacy group corner of East Ninth Street and Prospect Avenue. one prominent industry in Northeast Ohio neer, Mr. Egre last week learned he earned WIRE-Net had a pretty good week on the In total, Geis is proposing an investment of $180 still is struggling to tackle the ever-present a Grammy nod for the best engineered alternative energy front, too. million in the complex, which would include classical album for his work on the Brentano dilemma of maintaining price integrity. WIRE-Net, which is also the parent of the high-end apartments in the vacant Ameritrust String Quartet’s Beethoven: The After I wrote a story in the Dec. 10 edition GLWN wind energy supply chain network, Tower. The former county commissioners Late String Quartets, Op. 127 & of Crain’s on issues facing golf course got word that it was one of seven entities bought it in 2005, spending $40 million on the 131. owners — including declines in per-round nationwide tapped by the U.S. Department purchase and environmental cleanup of the The work also is featured revenues due constant discounting of of Energy to help spur domestic manufac- former bank buildings. (See story, Page One.) in the film “A Late Quar- greens fees — Jonathan Palmer of Mallard turing’s role in the offshore wind energy tet,” starring Christo- Creek Golf Club in Columbia Station called Campaign money: University Hospitals business. WIRE-Net said it expects to receive pher Walken and to offer his easy solution: Stop discounting. secured a $32.5 million gift from the Rainbow between $250,000 and $350,000 from the Philip Seymour Hoff- “Discounting rates and selling to third Babies & Children’s Foundation, which has Energy Department to help fulfill that role, man. parties is the death of public golf. It trains allowed the health system to reach its $1 billion with the exact amount to be decided as the “My wife was in an- your customer to look for the lowest rate,” fundraising goal a year earlier than expected. As scope of the project is determined. other room and the iPad Mr. Palmer said of sites through which club a result, University Hospitals is raising the goal was sitting next to her, owners can sell off-peak tee times for sub- WIRE-Net will work with entities in the of its “Discover the Difference” fundraising and all of a sudden she stantially less than normal. U.S. Manufacturing Extension Partnership, campaign to $1.5 billion. The gift from the Rain- says, ‘Why are all these people sending you (You can read all of Mr. Palmer’s com- including the Cleveland-based manufacturing bow Foundation, an independent organization messages saying congratulations?’ I had no ments on a subsequent Crain’s SportsBiz support organization Magnet, and others formed in 1887 as an advocate for UH Rainbow idea what she was talking about,” Mr. Egre blog at http://tinyurl.com/bpr2cjt.) across the country to identify manufacturers Babies & Children’s Hospital, was made in honor said in The Daily, a Case Western Reserve But Chuck Bennell, president of Tam and service providers that can supply the of the children’s hospital’s 125th anniversary. University newsletter. “Then it hit me what O’Shanter Golf Course in Canton, said offshore wind energy sector. WIRE-Net and the six other organizations A different route: The Ohio Turnpike will happened.” discounting isn’t going anywhere. selected by the Energy Department will not be privatized, but it will become the vehicle Northeast Ohio’s own Black Keys scored “Discounting is always a contentious compete next year as the government whit- for raising at least $1 billion for highway im- five Grammy nominations for their work issue, but it’s part of the marketing mix for tles the number of organizations working on provements, largely in northern on “El Camino,” the duo’s seventh studio all sorts of businesses,” Mr. Bennell said the effort to three, said WIRE-Net president Ohio. The money will come album. The LP is up for album of the when told of Mr. Palmer’s comments. John Colm. from existing turnpike toll year and best rock album, while their song “Everyone wants ‘the other guys’ to stop dis- revenue, which is sufficient to “Lonely Boy” is nominated for record of counting so ‘we’ are not forced to discount.” “We’ve made the first round of the play- cover existing turnpike debt the year, best rock performance and best — Joel Hammond offs,” Mr. Colm said. — Dan Shingler and new debt of at least $1 bil- lion. Gov. John Kasich said this new financing arrangement WHAT’S NEW BEST OF THE BLOGS will allow projects such as the Kasich Cleveland Inner Belt and the Excerpts from recent blog entries on came from investors based outside of Ohio. revamping of Cleveland’s West CrainsCleveland.com. Shoreway to move ahead at a faster pace. That Chronicling presidents’ pay means the second Innerbelt Bridge might open Beyond the coasts before 2016. ■ The Chronicle of Higher Education did the ■ John Dearborn, president of JumpStart heavy lifting of compiling compensation Bidding starts at …: The Cleveland Metro- Inc., used a Huffington Post column to talk data for nearly 500 presidents of private, politan School District plans to auction off its up the Midwest as an emerging “entrepre- nonprofit colleges in the United States, and headquarters building at 1380 E. Sixth St. The neurial hotspot.” the numbers, as you’d expect, are eye- “open outcry” auction is set for noon on March This fall, he noted, “entrepreneurs and catching. 7, 2013, at the Sheraton Cleveland Airport Hotel. investors from all over the country” gathered In 2010, the most recent year available, The building sits across the street from the new THE COMPANY: SuperTrapp Indus- in downtown Cleveland for the the best-paid president was Cleveland convention center rising on the city’s tries Inc., Cleveland National Association of Seed Bob Kerry of The New School Mall, and has been viewed as a potential site of and Venture Funds annual in New York City, with total a hotel, apartments or a mixed-use property. THE PRODUCT: Road Legends conference, during which compensation of $3.05 million. Phantom Pipe II AOL founder and Startup His base pay, though, was a Breaking the ice: The Lake Erie Energy De- America chairman Steve Case relatively modest $602,539. velopment Corp., a nonprofit helping organize The maker of performance exhaust sys- said a “broader entrepreneurial The data included 24 presidents the project, won a $4 million federal grant that tems for motorcycles, ATVs and cars says ecosystem” with many hubs of of private colleges in Ohio. Tops will be used to pay engineering, site design and the Road Legends Phantom Pipe II “provides innovation is possible. in pay among those leaders was other costs the project’s developers will incur a truly unprecedented look with a neighbor- The Midwest, Mr. Dearborn wrote, “is Barbara Snyder of Case Western Reserve prior to construction. LEEDCo’s private partners hood-friendly sound.” working hard to make Case’s vision a reality University, with total compensation in committed another $1 million to the project as th It’s an updated version of the original Phan- sooner rather than later.” He noted that a 2010 of just over $730,000. That ranked 68 well. Winning this grant will give LEEDCo the tom Pipe for Softails and the Baffled FLH recent JumpStart entrepreneur expo “drew nationwide among the private school pres- chance to compete for as much as $46.7 million Phantom Pipe, and it comes at a substantial 117 startups and more than 1,000 people to idents. more in financing that could be used to pay for price: MSRP $1,390. an afternoon-long showcase of transforma- Marvin Krislov, president of Oberlin construction of the “Icebreaker” project, which The Phantom Pipe II is available in a baf- tive technologies.” College, was No. 6 in Ohio, with total com- will consist of five to nine wind turbines located fled, black ceramic version, and it includes a Several trends have emerged to explain pensation of $462,058 in 2010. That put him seven miles off the coast of Cleveland. 2-inch removable and rebuildable core “that’s why entrepreneurship is “no longer solely at No. 192 nationwide. No. 15 in Ohio was the domain of the coasts,” Mr. Dearborn Richard Durst of Baldwin Wallace University, On the move: Architecture firm Westlake Reed tough sounding and even better performing,” wrote. Among them: at $330,441. Leskosky architecture firm announced plans to SuperTrapp says. ■ Communities are developing their own move to the Hanna Building, 1422 Euclid Ave. in A four-piece, stylized chrome-plated heat homegrown resources. With cheap rent downtown Cleveland, from its current offices at shield comes pre-installed, and a turned-up and plentiful real estate, the Midwest “is a One is too many 925 Euclid, better known as the former Hunting- claw end tip “features a domino dot-engraved good place to form an accelerator or an ■ ton Building. The architectural and engineering decorative billet end cap that makes a bold Unfortunately, the city of Cleveland landed incubator,” he wrote. firm said it will occupy the third floor of the statement without the drag pipe sound ar- on a list from TheAtlanticCities.com of cities ■ There’s a growing angel influence. Hanna, which is owned by the real estate affiliate rival,” according to the company. In with the highest rates of gun-related deaths. of the PlayhouseSquare Foundation. … Willis The Phantom Pipe II features a 2-inch pri- Ohio especially, “angel funds continue to be Cleveland was ninth on the list, with 25.2 North America, a unit of insurance broker Willis mary pipe and a 3.5-inch diameter collector. a major force: Two of the biggest angel gun deaths per 100,000 residents in 2011. Group Holdings, is relocating its Cleveland It’s designed by well-known bike builder Paul funds in the U.S. (as measured by member New Orleans was the worst, at 69.1 gun deaths office to 1001 Lakeside Ave., Suite 1600, from 200 Yaffe. size), Ohio TechAngel Funds and North per 100,000 people, followed by Detroit, at Public Square. Willis said the move is part of its For information, visit www.SuperTrapp.com. Coast Angel Fund, are located there.” 41.4. ■ strategy “to continue to elevate its presence in Venture capitalists are entertaining For the entire Cleveland metro area, the the state and drive growth in this key market.” Send information about new products to deals that aren’t on the coasts. For in- rate was 10.9 guns deaths per 100,000 resi- managing editor Scott Suttell at ssuttell@ stance, from 2007 to 2011, 67% of the nearly dents. That was the lowest metro rate for the crain.com. $1 billion raised by Northeast Ohio startups 10 cities on the list. 20121217-NEWS--20-NAT-CCI-CL_-- 12/14/2012 3:31 PM Page 1