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Vol. 34, No. 3
Airports could be on borrowed time Study will determine needs of publicly owned aviation spots By JAY MILLER jmiller@crain.com
Some of Ohio’s 97 public general aviation airports may be running out of runway. The state has embarked on an 18month study to examine the economic impact and money needs of
its publicly owned general aviation airports. The Ohio Department of Transportation says the review — dubbed the Ohio Airports Focus Study — is designed to see what roles these airports play in their communities and to identify the kinds of improvements that can be made with limited state and federal funds.
Because airports rely on public money for capital improvements, available funds could be focused only on the more robust airports, which could force some of the underused airfields to close. Among the airports that will be included in the study are Ashtabula County Airport, Burke Lakefront
Airport in Cleveland, Kent State University Airport and Lorain County Regional Airport. The study brought more than 75 airport managers, business owners, pilots and public officials to the Brecksville Community Center last Monday, Jan. 14, for a meeting to hear what ODOT expects to accomplish. It was one of six such sessions this month around the state.
INSIDE The ones to watch From Magdi H. Awad, right, to Dr. J. Brandon Walters, we highlight promising individuals in the Northeast Ohio health care sector. PAGES 11-15
See AIRPORTS Page 17
Commercial real estate hits 5-year sales peak Dollar volume of deals up 73% in 2012; ‘new normal’ may be in place By STAN BULLARD sbullard@crain.com
Sales of commercial properties in Northeast Ohio soared nearly 73% to $702 million in 2012, the highest level since such sales reached the stratospheric height of $1.3 billion in 2007 — the last year before the financial crisis struck and the nation entered the recession. That’s the finding of a survey of sales of income-generating commercial properties by Alec Pacella, a vice president of the NAI Daus real estate brokerage who has collected such data for years. Last year’s dollar volume of apartment, industrial, office and shopping center properties that sold at prices of more than $1 million was well ahead of the $405 million recorded in 2011, according to Mr. Pacella’s report. The pace of sales in 2012 surpassed that of 2008, when dollar volume hit $696 million as the financial crisis struck that October and lending dried up almost overnight. “This is the new normal, I guess,” Mr. Pacella said. “I don’t know if we will ever get back to the 2007 sales figures. It was so frothy it bordered on an unhealthy situation.”
GOODWILL EXPEDITION Natural history museum’s $125M campaign taps business community
By TIMOTHY MAGAW tmagaw@crain.com
The Cleveland Museum of Natural History is going on an expedition — not for dinosaur or woolly mammoth bones, but for big-dollar donations from the wallets of Northeast Ohio’s business leaders. The museum recently launched a $125 million capital campaign to finance an exhaustive renovation and expansion
program over the next five to seven years. It’s the museum’s largest fundraising effort in its 92-year history, and it’s going to take some major bones to make it happen. So, for the first time, the museum is making a concerted pitch to the region’s business and philanthropic community that links an investment in the museum to an investment in the region’s future work force. See MUSEUM Page 9
03
See SALES Page 4
MCKINLEY WILEY
Lubrizol CEO James Hambrick, center, is shown with A. Chace Anderson of CM Wealth Advisors and Evalyn Gates of the Cleveland Museum of Natural History.
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A BIT OF A JOLT
CRAIN’S ON THE WEB Daily reports delivered by our business experts ■Get a Crain’s business newsletter delivered to your inbox every day. On Mondays, we will have the Real Estate Report, followed by the Work Force Report on Tuesdays, the Dealmaker Alert on Wednesdays, the Small Business Report on Thursdays and the Ohio Energy Report on Fridays. Sign up at: CrainsCleveland.com. Click on services, then e-mail signup.
REGULAR FEATURES Big Issue .......................8 Classified ....................18 Editorial ........................8
JANUARY 21 - 27, 2013
Going Places .................7 Reporters’ Notebook....19 What’s New..................19
There were 3.7 million job openings on the last business day of November 2012, unchanged from October but up 12% from 3.3 million openings on Nov. 30, 2011, according to the government’s latest Job Openings and Labor Turnover Survey, known as JOLTS. From November 2011 to November 2012, job openings increased most in retail trade (part of the trade/transportation/utilities category) and health care (part of the education/health services category). Government job openings increased the least. Here are data for some of the industries with the most job openings (Change is the percent change from November 2011 to November 2012): Industry
Nov. 2012
Oct. 2012
Nov. 2011 Change
Trade/transportation/utilities
720,000
610,000
581,000
+23.9%
Education/health services
705,000
681,000
616,000
+14.4%
Professional/business services 584,000
645,000
561,000
+4.1%
Leisure/hospitality
479,000
442,000
434,000
+10.4%
Government
355,000
364,000
349,000
+1.7%
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV
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Flashes speeding up athletic donations
CRAIN’S CLEVELAND BUSINESS
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INSIGHT
Banks navigate tangled, wide web
Kent State’s success in baseball, football sparks $60 million fundraising drive By TIMOTHY MAGAW tmagaw@crain.com
Kent State University’s trip last summer to the College World Series and its first football bowl berth in 40 years did more over the last year than boost morale of the Golden Flashes faithful. It also infused the athletic department’s coffers with a hefty chunk of change — something upon which the university intends to build with the launch this spring of a $60 million fundraising campaign to support scholarships and the athletic program’s capital needs. “We have a lot of alums,” said Joel Nielsen, the university’s director of athletics. “We have the prospect base, and we’ve cou- Nielsen pled that with success on the field and in classroom and now have a heck of a product to go out and sell to people when we ask them to help us.” Mr. Nielsen’s fundraising prowess was one reason he was tapped for the head athletics official role in March 2010 after serving seven years at the University of South Dakota, where he helped steer fundraising efforts to finance its transition to a Division I school. In the two fiscal years that encompass the bulk of Mr. Nielsen’s tenure at Kent State, the athletic program has brought in $14.5 million in cash and pledges from donors. Matt Geis, Kent State’s executive director of athletic advancement, said those are good numbers considering athletics in total brought in about $25 million in cash and pledges over the last six fiscal years. See FLASHES Page 18
Fifth Third, PNC among cyber attack targets; insurance options sought By MICHELLE PARK mpark@crain.com
To fortify their defenses against a rising tide of cyber attacks such as those waged this month against PNC Bank and Fifth Third Bank, more financial institutions are buying — or at least inquiring about — cyber liability insurance, Northeast Ohio advisers say. Both PNC and Fifth Third faced in the early weeks of 2013 so-called “distributed denial of service” attacks, which seek to deny customers Internet access to a bank’s services
by directing waves of web-based traffic from compromised computers to the bank. In Fifth Third’s case, there were two attacks — and website disruptions — in five days. Prolexic Technologies, a Florida provider of distributed denial of service protection services, reported last Thursday, Jan. 17, that the attack volume against the firm’s global clients in last year’s fourth quarter reached the highest number of attacks Prolexic has logged for one quarter. Attacks last quarter against Prolexic’s client base rose 27.5%
from the third quarter and 19% from the year-ago quarter, though it did not disclose attack figures. Recent attacks aimed at national banks and federal savings associations prompted the Office of the Comptroller of the Currency to issue an alert Dec. 21. In the alert, the regulator said banks “need to have a heightened sense of awareness regarding these attacks and employ appropriate resources to identify and mitigate the associated risks.” See WEB Page 18
THE WEEK IN QUOTES “There’s such a diversity of opportunities to create that inquisitive spark in a young mind at a natural history museum. It sparked an interest (in science) in me at a young age. That developed and widened over time.” — James Hambrick, Lubrizol Corp. CEO and co-chairman of the Cleveland Museum of Natural History’s fundraising campaign. Page One
“I was pleasantly surprised that everyone said, ‘The science makes sense. Yeah, it looks good.’ ” — Tom Murphy, CEO, Eco Applicators LLC. Page 10
“I tell them to grill the hell out of these guys, because that’s what happens in real life.” — Shubhayu Basu, director of product development at the Global Cardiovascular Innovation Center. Page 11
“It’s no longer enough to be a good, strong patient advocate who handles complaints. … You’ve got to think of it more broadly and be more proactive instead of reactive.” — Carol Santalucia, vice president of patient experience, CHAMPS Healthcare, Center for Health Affairs. Page 14
Squire Sanders extends a firm grip globally Merger ‘arms race’ leads to growth in Europe, Asia; are Canada, Mexico next? By MICHELLE PARK mpark@crain.com
If top executives of Squire Sanders find what they’re looking for this year, they will help prove right those law firm consultants who predict that cross-border law firm mergers will
continue to increase in 2013. As 2012 came to a close, a number of cross-border mergers were announced, many of which created mega-firms comprising thousands of lawyers. Squire Sanders did an international deal itself last year by merging with a small Saudi Arabian
firm, and is not a newcomer to what some are calling the law firm “arms race.” When the firm’s chairman and global CEO, Jim Maiwurm, Maiwurm took the helm in fall 2009, he immediately set a priority for filling in the European presence of Squire Sanders, which has its main
administrative offices in Cleveland. Through its merger with Hammonds LLP of the United Kingdom, which was effective Jan. 1, 2011, the firm grew to roughly 1,260 lawyers from 740 overall and increased its European platform by 400% to 650 lawyers from 130. In October 2011, Squire Sanders added 60 lawyers through a combination with a firm in Perth, Australia, more than doubling its lawyer headcount in the Asia Pacif-
ic region to 110. “As you’re trying to position your law firm for the next 15 years, Asia Pacific is an area where you’ve got to be strong,” Mr. Maiwurm said, citing China’s large economy and Australia’s vast energy and mining resources. And last year, in addition to its merger in Saudi Arabia, Squire Sanders opened offices in Seoul, Singapore and Sydney. See SANDERS Page 6
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CRAIN’S CLEVELAND BUSINESS
SOLD
WWW.CRAINSCLEVELAND.COM
JobsOhio could be hit with another suit from think tank
8744 CHAMBERLIN RD TWINSBURG, OHIO
By JAY MILLER jmiller@crain.com
Newmark Grubb Knight Frank is please announce that the 137,000 SF distribution center in Cornerstone Business Park has sold to an investor. The build-to-suit facility was completed in 2012 for Vistar, a subsidiary of Performance Food Group. Cornerstone Business Park is the former site of the Chrysler Stamping Plant.
Terry Coyne represented the seller.
JANUARY 21 - 27, 2013
Full Selection of Commercial & Investment Offerings Available at
TerryCoyne.com Or Call Terry at
216.453.3001 1350 Euclid Ave, Ste. 300 Cleveland, Ohio 44115
If the state’s new economic development nonprofit, JobsOhio, proceeds with plans to sell bonds this month to finance its operations, it may face a second lawsuit from a group that has stymied the organization’s plans with its litigation. JobsOhio, created by Gov. John Kasich, was expected to use profits from the state’s liquor business to spearhead its economic development efforts. It would “buy” those liquor profits from the state with proceeds from a $1.5 billion bond issue; it then would use part of each year’s profits for incentives to encourage businesses to expand in or come to Ohio and would pay down the bonds with the rest. Although JobsOhio was one of the first pieces of legislation signed by Gov. Kasich when he took office in January 2011, its operation has been slowed by legal action. The left-leaning ProgressOhio, a Columbus think tank, filed suit to block JobsOhio — a privately run body — from using public money to fund its operation. The litigation has impeded Jobs Ohio, which has been using private donations and money from the Ohio Third Frontier technology advancement program for its operations in lieu of liquor profits. Now, though, JobsOhio is moving ahead. It has had the bond rating agencies review its plan and later this month intends to sell $1.5 billion in taxable and tax-exempt bonds, which would be backed by the liquor profits regardless of the outcome of the litigation. However, a bond sale could prompt more legal action from ProgressOhio, according to Brian Rothenberg, its executive director.
“Our legal team is looking at it,” Mr. Rothenberg told Crain’s. “It depends on if (the sale) goes forward.” Mr. Rothenberg wouldn’t specify the grounds for another lawsuit because he’d heard only recently about plans to issue the bonds. But his group’s original lawsuit had argued JobsOhio does not fit the constitutional definition of a corporation and the act of creating JobsOhio unconstitutionally extends the credit of the state to a private corporation.
Fractions add up JobsOhio has not set a date for the sale. But the credit rating agencies give issuers only a 60-day window to use their rating for a debt issue. Last week, the ratings agencies issued their opinions. Both gave the bonds investment-grade ratings — AA by Standard & Poor’s Financial Services and A2 by Moody’s Investor Service. Those ratings would have been higher if not for the pending litigation. As Moody’s said in its ratings report: “(R)esolution of the pending litigation (in JobsOhio’s favor) would, all other factors remaining equal, lead to a higher rating.” Likewise, should the Ohio Supreme Court allow ProgressOhio to continue to pursue its legal action, Moody’s could downgrade the bonds, which also would raise borrowing costs. Kevin O’Brien, director of the Center for Public Management at Cleveland State University and a former public finance analyst, said the difference in interest rates that could result from a lower credit rating likely would be 25 basis points or less, which is equal to one-quarter of one percentage point. However, the added cost on $1.5
billion in long-term bonds could run into the millions of dollars.
On with the mission A spokeswoman for JobsOhio said in an exchange of emails that the organization decided that its job creation efforts were too important to be delayed by political maneuvers. “We are moving forward accordingly so that our mission to help create jobs and assist businesses expand and locate in Ohio can be fulfilled,” communications director Laura Jones said in an email. “Ohioans need more jobs now and we are taking the appropriate steps to complete the transfer of the state’s wholesale liquor enterprise, which will ultimately provide a reliable resource base for achieving job creation in Ohio.” The timing of JobsOhio’s decision to sell the bonds also may align with Gov. Kasich’s next budget, which is expected to go to the Legislature next month. Besides paying off existing bonds backed by liquor profits, the state intends to funnel $500 million of the $1.5 billion it would receive from JobsOhio into its general fund. This legal battle began in 2011, when ProgressOhio filed a lawsuit in Franklin County Common Pleas Court that questioned the constitutionality of creating a nonprofit that would use public money for its operations. That court ruled the organization did not have standing to sue, so ProgressOhio asked the state Supreme Court to overturn that decision so its case to block JobsOhio’s plans could proceed. That challenge is pending before the Supreme Court. The conservative 1851 Center for Constitutional Law filed a friend of the court brief supporting Progress Ohio. ■
Sales: Distressed purchases big part of figures continued from PAGE 1
While the dollar volume of sales may be improving, their composition is “anything but normal because a lot of distressed sales produced that number,” Mr. Pacella said. For example, the $14 million purchase of Parmatown Mall and Shopping Center by an affiliate of Phillips Edison Co. of Cincinnati was a court-approved disposition. The deal occurred after Parmatown’s longtime owner — a partnership formed by RMS Investments, which is led by the Ratner, Miller and Shafran families behind Forest City Enterprises Inc. — put the 1-million-square-foot retail property into receivership. Another high-profile sale was the purchase of 57 residential units at Avenue Tower, 1211 St. Clair Ave. in downtown Cleveland, for $6.8 million by an investor group. The sale to a partnership led by investors Tim Zaremba of Zaremba Management Co. in Fairview Park, construction contractor Tony Panzica and developer Fred Geis capped
two years of bitter litigation among lenders, contractors and developer Nathan Zaremba. The project became largely a rental complex rather than a much-ballyhooed downtown condo venture. In a dramatic sign of how activity surged, one deal — the sale of SouthPark Mall in Strongsville by Westfield Cos. to an affiliate of Boston-based Starwood Capital — exceeded the total volume of sales in 2009. As part of a portfolio purchase by Starwood, SouthPark traded for $262 million last June. By contrast, sales in 2009 totaled almost $191 million in 41 transactions, according to Mr. Pacella’s report. In an analysis of what types of properties traded, retail properties accounted for 59% of last year’s sales by dollar volume. Apartments — the darling of investors due to surging occupancy as would-be homeowners remain renters — accounted for 16%.
Money returns to the market Mr. Pacella is not alone in seeing the distressed-sale aspect of so
many of the 2012 deals. David Browning, managing director of the Cleveland office of the CBRE Group Inc. real estate brokerage, described many of the transactions as “funny” deals because they were sales by lenders or directed by lenders to work out problem loans rather than armslength transactions. However, Mr. Browning also sees an improving market behind the numbers. “Last year we saw a return to a normalized rate of transactions on the sales side,” he said. “There clearly is a lot of capital coming into the real estate market again. There is still a skittishness and fragility to transactions that makes it difficult. However, everyone in our industry is happier than in 2009 and 2010.” Mr. Pacella expects more of the same in the investment market in 2013. “Liquidity continues to get better,” he said. “More buyers are coming out of the woodwork. There is more optimism. This year will be another step toward normalcy.” ■
Volume 34, Number 3 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 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. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
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Sanders: Jones Day also is growing overseas continued from PAGE 3
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“The speed at which we’ve been moving has been pretty dramatic,â€? Mr. Maiwurm said. “We’ve doubled the size of our law firm during the height of the global financial crisis ‌ and we’re not done.â€? This year, Squire Sanders is eyeing cross-border mergers in Mexico and Canada, both countries in which it does not have a presence, Mr. Maiwurm said. Nothing is imminent, though, he said. “The world is changing, the legal industry is changing, (and it’s) not going to go back to how it was,â€? he said. “Law firm leaders who are awake to what’s going on are trying to figure out, how do we balance the desire to maintain independence versus the need for a platform that makes you competitive in this increasingly national and global marketplace?â€?
The urge to merge Mexico “deserves a close look� because it has strong gross domestic product growth and is home to sophisticated businesses interested in investing around the world, Mr. Maiwurm said. And given Canada’s large energy and mining resources and strong banking system, “it’s only natural that we think about Canada,� he said. Merger is Squire Sanders’ strategy for entering both markets, Mr. Maiwurm said. “Our philosophy in most places around the world is you’ve got to have really good, local expertise to combine with a global platform,� he said. “So, when we’re looking at a place like Mexico, I don’t think we would enter Mexico by sending a bunch of gringos there.� Squire Sanders is not the only firm looking north; a number of firms see
“Law firm leaders who are awake to what’s going on are trying to figure out, how do we balance the desire to maintain independence versus the need for a platform that makes you competitive in this increasingly national and global marketplace?� – Jim Maiwurm, chairman and global CEO, Squire Sanders opportunity in energy work in Canada, said Peter Zeughauser, chairman of Zeughauser Group, a firm with offices in Chicago, Washington, D.C., and California that consults with large law firms on mergers and acquisitions and other matters. Mr. Zeughauser is among those who believe the number of law firms expanding globally will grow in the coming year. He estimates only a half-dozen firms at present are building significant global platforms to the extent that they have a material presence in the major markets of the world. Squire Sanders is “clearly headed in that direction,� said Mr. Zeughauser, whose firm does not consult with Squire Sanders. “It used to be all firms kind of looked the same and did well,� Mr. Zeughauser said. “But the market has become more competitive just like it has for business, and that’s forced firms to position themselves in the marketplace for clients who have certain kinds of needs.� Jones Day is another local firm with a sizable international footprint; it counts 37 offices in 17 countries. But, in contrast to Squire Sanders, the firm has expanded primarily through opening offices, not cross-border mergers, a spokesman said. In 2011, Jones Day opened three offices in Saudi Arabia; in 2012, it opened its third office in Germany, in Dusseldorf; and in 2013, it will open another in Amsterdam.
Crossing the border The spread of law firm globalization can be traced back to 2005, around the time DLA Piper aggressively expanded and enjoyed increased revenue and increased
profitability, Mr. Zeughauser said. “This cross-border corporate work is high-rate work,â€? he said. “It’s very attractive for law firms. “It’s not just the cross-border work,â€? Mr. Zeughauser added. “It’s also having a presence in the emerging global mega-cities. You’re distinguished from your competitors in a way that’s very important in the minds of clients.â€? Integrating technology and people (for example, through global partnership meetings) has cost Squire Sanders millions, but the costs are outweighed by the enhanced abilities and opportunities that being in 37 offices in 18 countries affords the firm, Mr. Maiwurm said. Squire Sanders is better able to serve clients with its increased practice and industry bench strength, and it’s attracting talent away from other firms that have less ubiquitous platforms, according to Mr. Maiwurm. Revenues have climbed, too: Squire Sanders reported revenues in 2010 of $518 million to American Lawyer prior to its Hammonds merger; in 2011, it reported revenue of $742 million, or 40% more. Revenue numbers for 2012 were unavailable as of last Thursday, Jan. 17. “We’re getting work that we would not have gotten if we had stayed what we looked like at the end of 2010,â€? Mr. Maiwurm said. There are risks in global expansion — among them, a negative change in culture and choosing a weak merger partner — but there’s also risk in waiting to do it, too, Mr. Zeughauser said. “A lot of firms are reticent to grow through the number of mergers that it takes to accomplish this (globalization),â€? he said. “Many firms feel that those culture changes are risky and hard to accomplish, and that integration is difficult.â€? The longer a company waits, however, the fewer attractive merger candidates there may be in certain parts of the world by the time it pursues a combination, Mr. Zeughauser said. Those firms that wait too long may end up being acquired themselves, he noted. “The risk is not being willing to take the risk,â€? he said. â–
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GOING PLACES
LIGHTING CASE STUDY
AUTOMOTIVE MAYFIELD COLLISION CENTERS: Mike Costello to production manager; Adam Kapis to parts coordinator, Bedford Heights. Ashe
Constantinescu
Haselton
Salsbury
NOTRE DAME COLLEGE: Janet G. Ashe to vice president, finance and administration.
N.E. Ohio Manufacturer Annual Energy Savings FirstEnergy Rebate Accelerated Tax Deduction Brighter Facility
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Throndson
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GEAUGA SAVINGS BANK: Vince Sack and Jeff Skonieczny to senior commercial lenders; Derrick Adams to commercial lender/relationship manager.
330-931-3905 Edwards
Greenwald
Brown
Porter
FINANCIAL SERVICE and property manager; Chris Nasca to plant health care foreman; Heidi Baumgart to marketing coordinator.
PWC US: Tim Throndson to tax leader, Lake Erie market; Tim Gerspacher to tax partner.
STAFFING
THORNHILL FINANCIAL INC.: Gordon C. Short to senior manager.
RESERVES NETWORK: Neil Stallard to CEO.
HEALTH CARE
TECHNOLOGY
JEWISH FAMILY SERVICE ASSOCIATION OF CLEVELAND: Lisa Goodlow to executive director and Barbara Edwards to sales and marketing manager, JFSA Care at Home; Scott Greenwald to sales coordinator, JFSA Lifeline.
OECONNECTION: George Hoose to manager, product.
LEGAL DINN, HOCHMAN & POTTER LLC: Nicholas J. DeBaltzo Jr. to associate. BENESCH: James A. Brown and Connie A. Porter to associates.
MANUFACTURING EATON CORP.: Jim Ward to vice president, finance transformation. THE ROGERS CO.: Sam DiBernardo to detailer/project manager; Dana Kostovny to account manager.
Turnkey project by
ROI Energy
FINANCE
CORRIGAN KRAUSE: Henry F. Gingerich to senior tax manager.
DiBernardo
MEDIA WKSU: Daniel E. Skinner to general manager. Kostovny
NONPROFIT BECK CENTER FOR THE ARTS: Jason Weiner to director of development. HANNA PERKINS CENTER FOR CHILD DEVELOPMENT: Barbara Streeter to chair of faculty.
REAL ESTATE KELLER WILLIAMS GREATER CLEVELAND: Stephanie Kiesel to realtor, West/EZ sales team.
SERVICE THE PATTIE GROUP INC.: Mike Bulone and Matt Matisko to project directors; Kate Adams to garden
110K sq. ft. $30,658 $18,015 $22,910 170%
Upgraded HID & T-12 fixtures to Energy Efficient T-8 & T-5’s
ENGINEERING R.E. WARNER & ASSOCIATES INC.: Florin Constantinescu, Justin R. Haselton, Donald M. Salsbury and Jeffrey R. Spangler to shareholders.
7
Attn: Manufacturers & Warehouses
JOB CHANGES
EDUCATION
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UTILITY FIRSTENERGY CORP.: Mark T. Clark to executive vice president, finance and strategy; James F. Pearson to senior vice president, CFO; Steve Staub to vice president, treasurer.
BOARDS ASSOCIATION OF CORPORATE COUNSEL-AMERICA, NORTHEAST OHIO: David G. Slezak (AffordableCare Inc.) to president; Dena Kobasic to vice president; David M. Stringer to secretary; Cynthia A. Binns to treasurer. ASSOCIATION OF FUNDRAISING PROFESSIONALS, CLEVELAND: Tim McCormick (McCormick Consulting) to president; Sharon Martin to president elect; Robert Cahen to secretary/treasurer; Laura Frye, Marge Zellmer, Betsey Kamm and Pamela Willits to vice presidents; Beth Brown to immediate past president. GREATER CLEVELAND AUTOMOBILE DEALERS’ ASSOCIATION: Ed Babcock (Junction Auto Sales) to chairman; Louis A. Vitantonio Jr. to president; Colin MacLean to first vice chairman; Chuck Gile to second vice chairman; Ken Ganley to treasurer. GREATER CLEVELAND VOLUNTEERS: Mike Smith to president; Tom Barnard to executive vice president; Joe Cech, Stephanie FallCreek, Jill Fowler, Becky Moldaver, Veronica Runcis and John Reynolds to vice presidents; Lisa Foley to secretary; Rosemary Rehner to treasurer; Bob Erzen and Elaine Rocker to members at large. LEGAL AID SOCIETY OF CLEVELAND: Ann Bergen (Law Offices of Ann Bergen) to president; Rick Petrulis and Frank DeSantis to vice presidents; Karen Giffen to
secretary/treasurer; Adrian Thompson to president emeritus.
Send information for Going Places to dhillyer@crain.com.
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PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
High note The Cleveland Orchestra deserves bravos for the hard work it and its supporters have done to secure the future of this ensemble of skilled musicians, who together remain the city’s most visible global ambassadors. Buoyed by efforts to broaden its audience and attract younger patrons, the orchestra last week announced that its ticket revenue for the 2012-2013 Severance Hall season is on track to set a record. Sales so far for the September-to-May season are running 24% ahead of the year-earlier period. At the current pace, revenue for the season should reach $7.6 million, which would surpass the previous record set in 2000-2001 and would be $1.3 million more than last season. The gains are coming as orchestras nationwide struggle to maintain audience and relevance in a world awash with entertainment options. The competition ranges from live music and theater any night of the week to television shows and movies on Netflix, where subscribers can get what they want, when they want it without leaving the comfort of their homes. The orchestra and its friends have been sowing the seeds for this harvest for a few years now, in large part by promoting a youth movement. A catalytic event occurred in late 2010 when the Milton and Tamar Maltz Family Foundation pledged $20 million to the orchestra to give life to the Center for Future Audiences. Gary Hanson, the orchestra’s executive director, said at the time that the center would focus on eliminating economic, geographic and cultural barriers to attending orchestra performances. “Our goal is to have the youngest orchestra audiences in the country by the time of our centennial in 2018,” Mr. Hanson said back then. The initiative is bearing fruit. Since 2011, more than 26,000 young concert-goers have attended orchestra performances for free at its summer home, Blossom Music Center, under a program that admits patrons under 18 without charge. And thanks to the orchestra’s Student Advantage program with its discounted tickets, more than 200 students on average are attending evening performances this season at Severance Hall. The orchestra also is meeting young people in their element. A dozen student ambassadors representing five area colleges volunteer their time promoting concert-going among their peers. And a focus on social media “has resulted in considerable growth in sales online,” according to the orchestra. A look at the orchestra’s Facebook page shows it’s no Johnny One Note when it comes to audience engagement via social media. It teased last week’s orchestra concerts with violin superstar Joshua Bell by staging a trivia contest to win “Joshua Bell Prize Packs.” It also posted a cool YouTube video that featured Mr. Bell playing his $3.5 million violin in a Washington, D.C., Metro station during rush hour in an experiment staged by The Washington Post to see whether people would notice him (few did). In an adapt-or-die world, the Cleveland Orchestra is adapting — and, in the process, it’s proving a 95-year-old can be pretty hip. Long may it live.
FROM THE PUBLISHER
Fears of an ill-informed world Much as the library — and Cleveland So, the owner of The Plain Dealer continues its march into the digital world; and Cuyahoga County have two of the however, questions remain about its hisvery best in the country — is known as torical legacy in the world of “the people’s university,” the print publishing. daily newspaper might have BRIAN Late last week, our sister TUCKER been the people’s textbook. And publication, Advertising Age — now, it seems all but certain that fittingly in one of its digital it is disappearing as we knew it. news reports — announced Staff cuts continue at The that Advance Publications Plain Dealer, and it appears all bought Pop, a digital advertisbut certain that the paper will ing agency out of Seattle. be cutting its home distribution Ad Age reported that Adschedule, perhaps to as few as vance — which is The Plain three days a week, as has been Dealer’s parent company — already done in other Advance had waded into agency waters deeply in markets such as New Orleans. the past by enabling its print publicaNow what happens to the folks who tions such as Wired, Vogue and other tican’t afford a home computer or smart tles to create ads directly for advertisers, phone? Those of us fortunate enough to thus bypassing traditional agencies. But take for granted the technology that a $35 million purchase of a 200-employwires us together, rarely, if ever, think ee agency is another matter entirely. about the digital divide. But it’s out Steve Newhouse, the family member there, and the speculated publication who leads Advance’s digital efforts, decutbacks at the region’s biggest daily scribed it as further evidence that Adnewspaper simply put low-income folks vance recognizes that ours is a “digitally at an even further disadvantage. centered world.” It’s difficult to know how far-reaching Which made me think: “Yes, but for the effect will be. All of us of a newspaperwhom?”
reading age know that very few of our kids — even the really smart ones — ever pick up a printed publication. They’re glued to their smart phones — or tablets, or laptops — and “facebooking” their circle. Recently, my daughter and her boyfriend paid a short holiday visit. The boyfriend, a very smart, engaged law student about to graduate, mentioned that he gets all his news from Twitter. Now, I’m not a tweeter, and I don’t have the time to spend following Twitter feeds, but I know this much — his comment scared me because it meant he was relying on news feeds that others considered valuable. So instead of having experienced, veteran editors selecting (and fact-checking) stories that should be of value, my visitor was basing, at least in part, his news decisions on what “the crowd” considered important, or funny, or valuable. He wasn’t even considering a wider, more universal collection of news like that offered up by a newspaper. And that should scare anyone who thinks a well-informed citizenry is vital to our republic and its future. ■
THE BIG ISSUE With the names Jacobs Field and Gund Arena becoming distant memories, how do you feel about the Cleveland Browns selling the naming rights to the stadium to FirstEnergy?
RACHEL BUCEY
KAY SIMECEK
STEPHANIE BARNICK
TONY FATICA
Cleveland
Avon Lake
Broadview Heights
Gates Mills
I would’ve preferred for it to stay Browns Stadium. I think it’s more traditional. … They have a following that’s typically a little bit nostalgic about the team.
It’s a little sad. It’s kind of an end of an era. … It’s kind of commercialized a little bit.
It’s kind of bittersweet to watch. It’s good that they’re changing and bringing in new ideas, but I don’t know. I still refer to Progressive Field as Jacobs Field sometimes.
I don’t mind it at all. I really don’t. It’s just the way it is. It’s another way to get income. Revenue. I don’t mind it a bit.
➤➤ Let us know what you think. Vote in our online poll at www.CrainsCleveland.com
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LETTER
Put severance tax hike into infrastructure ■ It appears our Republican governor, John Kasich, and the Republican-dominated Legislature are at it again. If you haven’t heard or been too busy working at your multiple jobs to keep your head above water, let me fill you in with what these shortsighted folks have come up with regarding increasing the severance taxes on the oil and gas industry here in Ohio. They are hoping that their rhetoric about jobs and economic growth will keep us distracted from the risks they are placing on our environment, primarily our water. By allowing fracking without strict liability laws being placed upon the oil and gas companies, our fellow Ohioans will most likely be forced into facing increased or excessive amounts of methane and chlorine in their water (also known as “fire water”). And those are the chemicals we know of at the moment. Since the human body is more than two-thirds water, which we depend on for life itself, wouldn’t you think that our legislators and governor would have enough common sense to put everyone’s health first rather than tax reductions for the wealthy? What kind of leadership and common sense is being shown by pro-
WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business e-mail: editor@crainscleveland.com
viding a tax cut on individual income taxes with the proposed increase in severance taxes? Looks like the kind that will benefit the wealthy again more than the middle class. I don’t believe Ohioans will fall for it again, governor, with your proposal to give us all a tax cut in personal income while at the same time proposing to borrow $1.5 billion for infrastructure (roads, bridges, Ohio Turnpike). This places us all in debt and probably will result in future tax increases. It is time to stop playing political games and get down to the business of governing. It is time for all of our elected representatives either to lead, follow, or get the hell out of the way. Don’t be misled. If we look at any percentage method of cutting the personal income taxes, it is simply the rich getting richer and the middle class getting poorer. How, you might ask? Let’s take this example: If you are a middle-class family making about $50,000 annually, and if the governor and Republican-dominated state Legislature give us all a 1% tax reduction, a middle-
class family would get $500. However, the wealthier making $250,000 annually would get $2,500 back, and someone making $1 million annually would get $10,000 back. This is the old percentage shell game again. If you insist upon cutting taxes, how about some new formula, like every Ohioan that works gets a flat $500 tax credit? That would be equal while utilizing any additional savings to maintain our roads and bridges. You might consider returning to the local governments some of the funds that were unilaterally ripped away from our public safety forces and other services over the last couple years. Actually, my fellow Ohioans, does it make sense to borrow $1.5 billion and put us all in debt for 20 to 30 years while providing a politically motivated individual tax cut that primarily benefits the wealthy? (Sounds to me like the first-term governor wants another term, doesn’t it?) We could all use $500 more. However, with our roads and bridges falling apart, wouldn’t it make sense if we applied the increased severance taxes collected as the source for repayment of the $1.5 billion borrowed? Loren Sengstock Twinsburg
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Museum: Lubrizol CEO will aid efforts continued from PAGE 1
A magnet for visitors
As such, museum leaders are banking on face-time with local corporate leaders to urge them to pony up. “We have the chance to do things here that impact children and adults that they can’t do in a classroom,” said Evalyn Gates, who joined the museum as its executive director and CEO in 2010. “It makes science come alive.” To embolden the pitch, the museum drafted Lubrizol Corp. chairman and CEO James Hambrick — a chemical engineer by trade and an amateur cosmologist by choice — to co-chair the fundraising effort and, perhaps, to tap his Rolodex for any contacts willing to contribute to the campaign. Mr. Hambrick, a native Texan who said he was inspired by Houston’s natural history museum at a young age, personally contributed $5 million to the effort. “There’s such a diversity of opportunities to create that inquisitive spark in a young mind at a natural history museum,” Mr. Hambrick said. “It sparked an interest (in science) in me at a young age. That developed and widened over time.” The natural history museum, which sits a stone’s throw away from the Cleveland Museum of Art on Wade Oval in the city’s University Circle neighborhood, hasn’t undergone a top-to-bottom renovation in decades. The museum moved in the 1950s from Euclid Avenue to University Circle, where it has seen a hodgepodge of upgrades over the years — such as a $300,000 technology upgrade to the museum’s planetarium in 2010 — but nothing quite as dramatic as the project in the works. The idea, according to Dr. Gates, is to bring the “equivalent of the planetarium to the whole museum.”
The museum quietly has been building toward the renovation and expansion effort for several years with plans already on the drawing board upon Dr. Gates arrival from the Kavli Institute for Cosmological Physics at the University of Chicago. Dr. Gates re-evaluated the plans and called for a more interactive and immersive proposal. “Education is not a passive endeavor,” she said. The museum’s expansion and renovation plans, which still are evolving, aren’t expected to expand greatly the museum’s square footage— an increase to 274,000 square feet from about 214,000. However, the changes as envisioned would produce a bevy of enhanced exhibit spaces. Plans call for the construction of two new two-story wings that will house exhibits and collections, a striking glass-enclosed lobby and a new parking garage. The museum’s labs also will be exposed and integrated into the galleries, allowing visitors to see the museum’s scientists at work. “If we do this right, people will want to come to Cleveland just to see the building,” said Peter Anagnostos, who joined the museum seven months ago as its chief development officer to help guide the ambitious fundraising effort. With Northeast Ohio’s reputation as a hub for biomedical innovation and a heap of other sectors rooted in science, museum officials hope they can sell business leaders on the prospect that their donations would be investments in a 21st century regional work force. The group also is looking to build on the momentum of the passage of an operating levy last fall to support a reform effort for the Cleveland Metropolitan School District. “Moving the Cleveland municipal
Todd A. Snitchler Friday, January 25, 2013
schools forward was just one part of the equation,” Lubrizol’s Mr. Hambrick said. “This is just another pillar in that overall, long-term solution of engaging our youth and exciting them about science education.”
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Competitive marketplace Cleveland hosts a horde of cultural and research institutions vying for philanthropic dollars, and the natural history museum’s quest for a slice of the wealth could come as a challenge, according to Stuart Mendel, director of the Center for Nonprofit Policy & Practice at Cleveland State University. The Cleveland Museum of Art, for one, is in the final stretch of its $350 million capital campaign — an effort that launched back in 2005. “They have probably the best talent and the best product, and it’s taken them this long to raise that much money,” Dr. Mendel said of the art museum. “The natural history museum is a good place. It’s a good institution and well-run and its plan is great. They’re just in a marketplace competing for the same dollars. It’s about whose ideas win.” Museum officials admit the fundraising effort could be a challenge, but believe they’ve put together a team that can meet that $125 million goal. Mr. Anagnostos joined the team with 25 years in fundraising experience, which included stints at Cleveland State University, John Carroll University and Harvard Medical School. He also added four staff positions to the museum’s fundraising division. Mr. Anagnostos said the biggest challenge is lining up calendars that will allow him and his staff to get in front of movers and shakers. “Cleveland is a very philanthropic community,” he said. “We just have to get out there and get our message to each person.” ■
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THE COLLEGE OF PHARMACY proudly congratulates
Magdi H. Awad, Pharm.D., assistant professor of pharmacy practice and clinical pharmacist at Akron Community Health Resources,
“ W H O TO WAT C H I N H E A LT H C A R E .” neomed.edu
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Teachers get Independence Hudson firm’s spray Educational Service Center buys building from group led by Dalad for $5.7 million By STAN BULLARD sbullard@crain.com
Look for more office workers to start turning on the lights again in July near Rockside Road in Independence as the Educational Service Center of Cuyahoga County, a multifaceted public education support group, takes up residence at Essex Place, which it recently acquired. About 60 of the group’s employees will occupy offices on the third floor of the 80,000-square-foot building, said Robert Mengerink, superintendent of the Educational Service Center. Other education-related organizations that lease space from the group will occupy other parts of the structure, he said. The Educational Service Center’s existing 20,000-square-foot building at 5811 Canal Road in Valley View is jammed. Space is so dear that it recently converted two closets to offices, said Dr. Mengerink, who holds a doctorate in education. The new building at 6393 Oak
Tree Blvd. is near the center of the county served by the group, which often has educators from throughout the region visit its headquarters. Locating in Independence also puts it in one of three school districts that it serves directly by law, Dr. Mengerink said. Cuyahoga County land records show Educational Service Center on Dec. 19 paid $5.7 million to buy the Independence building from ES Investors Ltd., a group led by Dalad Group, a large commercial landlord in the south suburbs. ES Investors nearly doubled its money in a short time, as it paid $2.9 million in June 2011 for the building — then with just 20% occupancy — in a distress sale. Neil Viny, Dalad president, observed that the market tends to overreact and pummel values of high-vacancy buildings in a downturn. Dalad also added value to the building by boosting its occupancy with tenants that include the U.S. Department of Labor. “We would have been delighted
to lease the building to (Educational Service Center) and kept it in our portfolio, but they wanted to own,” Mr. Viny said. Dr. Mengerink said his group sought to buy the building so that it could control who leases space in it. Educational Service Center will install a training center on the first floor and redo the third floor of the building to suit its needs. Some of its 800 employees occasionally use its offices or meet at its headquarters because they work at public school districts in the county. With school districts also embracing a goal of combining administrative functions to streamline operations, Dr. Mengerink said the Educational Service Center gains room to grow as it expands its manifold mission, which includes delivering special education and professional development services. Although Educational Service Center is not a commercial tenant, the city of Independence is happy to see it move onto Oak Tree, said Jeremy Rowan, the city’s economic development director. “This takes an empty building, fills it up and provides income tax revenue for the city,” Mr. Rowan said. ■
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kills germs long term Eco Applicators, led by former Ben Venue CEO, aims to reduce infections By CHUCK SODER csoder@crain.com
The “distinctive odor” trainer Don McPhillips used to notice inside some of John Carroll University’s athletic facilities isn’t quite so distinctive anymore. Both the odor and the microbes that cause it should be gone until at least Thanksgiving — if the spray used by Eco Applicators LLC works as well as the company suggests. The company’s owners say the light-activated, microbe-killing spray that was applied by hosing down John Carroll’s athletic equipment could have a big impact on how hospitals, athletic facilities, day care centers and other places prevent infections. Among those owners is Tom Murphy, former CEO of pharmaceutical maker Ben Venue Laboratories Inc. of Bedford. He became CEO of Eco Applicators last August after vetting the technology with several people he knows in the health care field. “I was pleasantly surprised that everyone said, ‘The science makes sense. Yeah, it looks good,’” Mr. Murphy said. The company, which is one of a handful of distributors licensed to use the technology, started offering what it is calling the NanoTech Spray as a service last year. Since then, Eco Applicators has signed more than two dozen paid customers, including the Atlanta Hawks and Savannah State University in Georgia. The spray is a combination of titanium dioxide and zinc that works by releasing particles with a positive charge when exposed to indoor or outdoor light. Those free radical particles seek out and kill the microorganisms, which tend to have a negative charge. The spray has a few big selling
points, according to the owners of Eco Applicators. Once sprayed, it can kill bacteria, viruses and fungal spores for an entire year, if not longer, on high-touch areas, according to tests verified by an independent laboratory. Plus, the spray can’t be wiped off because its particles are so small that they fit into the super-small crevices between the molecules on any given surface. They also say the spray is nontoxic. Ultrafine titanium dioxide dust is considered a possible carcinogen because it has been found to cause respiratory tract cancer in rats, according to the International Agency for Research on Cancer. Government agencies in the United States and Canada suggest that manufacturers take action to prevent workers from inhaling large amounts of ultrafine titanium dioxide. However, titanium dioxide is an ingredient in toothpaste, sunscreen and some foods. Mr. Murphy said the spray contains a relatively small amount of the chemical, and it’s a liquid, as opposed to a dust or a powder, which were the forms singled out by the International Agency for Research on Cancer. Eco Applicators consists of Mr. Murphy and its founders, David Dickens, president of Hudsonbased Dickens Enterprises, which sells equipment made by a variety of manufacturers to retail stores, and Frank Kelly, who is cofounder of kitchen products maker Kelmax Equipment and lives in Georgia. Eco Applicators uses contractors to apply its NanoTech Spray, but it aims to hire more of its own employees as it grows. Mr. McPhillips, of John Carroll, said he was interested in the product because he wanted something that could work on different, hightraffic surfaces over a long time. At Thanksgiving, the university had Eco Applicators spray the mats and walls in its wrestling room as well as equipment in its weight rooms and the aerobics room in its student recreation center. If the surfaces remain mostly free of microbes, the school might have the company spray its showers and locker rooms. ■
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WHO TO
WATCH IN
HEALTH CARE N
ortheast Ohio health care in and of itself is a sector to watch. Not surprisingly, the individuals working within the field are engaged in some pretty interesting activities, from conducting research to working to
MAGDI H. AWAD Assistant professor Pharmacy practice, College of Pharmacy, Northeast Ohio Medical University Clinical pharmacist Akron Community Health Resources Inc.
M
agdi H. Awad said he enjoys juggling his many roles — teaching pharmacy students, working directly with patients on their medications and conducting research. His most recent job is overseeing construction of a small pharmacy at Akron Community Health Resources. In a former medical records room freed up by the nonprofit clinic, it is installing a pharmacy that will allow it to dispense medications to its patients. It will take advantage of a federal program through which the clinic will generate some revenue while providing less expensive medicine. Most exciting to Dr. Awad is that the in-house pharmacy will allow the clinic to more carefully track how patients are taking their medicines, which ones they are taking and how they work together. The area is of special interest to
SHUBHAYU BASU Director of product development Global Cardiovascular Innovation Center
A
fellowship at Stanford University changed Shubhayu Basu’s life. That fellowship not only guided him toward the medical device industry, but it also taught him to think like an entrepreneur. It’s a skill that serves him well in his current position as director of product development at the Global Cardiovascular Innovation Center, a Cleveland Clinic-led nonprofit created to build a bigger base of cardiovascular technology companies in Ohio. “I use what I learned in that year in some aspect every day at
Dr. Awad because he sees value in pharmacists working directly with patients and ensuring they properly take medicines. That also helps doctors in resourcestretched health clinics. With respect to the pharmacy, Dr. Awad learned to write a business plan for the pharmacy, sought grants for it and is now ushering it through creation. Moreover, the clinic pharmacy will train students and recent graduates to run the clinic and face-to-face pharmacy reviews, which is less common here than in other states. “The mix of responsibilities gives me ideas,” Dr. Awad said. “It also helps me adjust my ideas to be practical. I learned how to research things that improve the care we provide and not just learn good stuff to know.” Dr. Awad had started pharmacy training at home in Egypt, but won a green card in the State Department’s lottery. After earning a doctor of pharmacy degree at the University of Minnesota’s College of Pharmacy in Duluth, he came to the Northeast Ohio Medical University in Rootstown for a research track fellowship in academic medicine and roles as an assistant professor
and clinical pharmacist. Dr. Awad said he came to the United States because of the economic opportunities here as well as gaining top-drawer pharmacy training. Health care is in his blood: his brother is a pharmacist in Australia, and his mother works in Egypt’s health department. “When I was younger I was interested in mathematics and physics,” Dr. Awad said. “When I was in high school, I started learning about (heart) medications prescribed for my (late) father. In Minnesota, I worked at health fairs as a student and learned I liked working directly with patients to help them.” Susan Bruce, chairwoman and professor of pharmacy practice at the College of Pharmacy at Northeast Ohio Medical University, describes Dr. Awad as “very talented. The contributions he has started to make to this region will only continue to grow.” Dr. Awad lives in Copley, which is convenient to the clinic, the school and his church in Independence. He is 32, enjoys music and novels and is engaged to marry Christine Nabil this spring. — Stan Bullard
work,” he said. At the GCIC — which works to attract and create startups while helping existing companies grow — Dr. Basu has three duties: First, he evaluates startups that apply for GCIC grants and helps the more promising ones figure out their next moves. Second, once a company has received a grant, he provides them with more in-depth assistance to make sure the money is well spent. Third, he hunts for ideas that haven’t yet become companies. That means building relationships with doctors at the Clinic, at Ohio State University and the University
of Cincinnati, which are three of the GCIC’s six partner institutions. The doctors have lots of ideas but little time to act on them, so Dr. Basu helps them turn those ideas into products. He spends a lot of time shepherding future innovators, too. Three years ago he created a medical device innovation course for graduate and medical students at Case Western Reserve University. Students in the course — modeled after his fellowship at Stanford — hunt for medical problems, come up with ways to solve them, conduct market research, create a business plan and, finally, pitch their ideas to investors who are told to show no mercy. See BASU Page 12
expand health care to those who need it. This section aims to highlight some of those professionals on whom it’s worth keeping an eye. Whether they are new to the area, their position or profession, these 10 people all fall into the category of ones to watch.
WHAT THE HEALTH CARE COMMUNITY IS SAYING DR. DAVID PERSE President and CEO St. Vincent Charity Medical Center ■ What attributes are necessary to be a leader in the health care sector of tomorrow? The attributes of a successful health care leader are no different than any leader. You have to have a vision in the organization’s course, a passion for that vision and an ability to articulate that vision to others. But beyond that you must also engender support from your leadership team. When you have those components in place, you can move an entity forward. The CEO position requires a boldness of action; CEOs should not be managers. It is the role of the leader to set course. And then it’s important to empower operational staff with the freedom to run their areas of expertise as defined by that course. There is a significant advantage to being a health care leader with an active clinical practice because one has intimate knowledge of the product (patient care) and credibility among key customer groups (physicians). ■ From your perspective, what are some of the most significant challenges in health care going forward? The obvious but oversimplified challenge is financial. We must provide quality care through mandated mechanisms with less reimbursement. The fundamentals of health care will never change. There will always be sick patients and providers to care for them. In contrast to other industries whereby new paradigms and incentives are created through the process of delivering service, health care providers are limited in how they can innovate. Because the paradigm is one of control via government mandate, as leaders we must focus on quality and efficiency. It’s
the only way to survive regardless of what the reimbursement model dictates.
GREG SANDERS Executive director Lake Health Foundation; former executive director of development, MetroHealth; former senior director of development, Cleveland Clinic ■ What attributes are necessary to be a leader in the health care sector of tomorrow? The attribute I believe is most necessary to be a leader in health care today is the ability to collaborate with community partners who share a common vision of providing health and wellness services to the communities we serve. Health care is a shared responsibility that ideally engages corporate, civic, community and business leaders as well as health care providers that truly understand the needs of the families we care for. A leader with a collaborative spirit is positioned well to succeed with this task. ■ From your perspective, what are some of the most significant challenges in health care going forward? The most challenging issues facing health care today involve the way we now care for individuals and how we, as health care institutions, adapt to new economic realities. Health care systems are in the midst of a transition from providing episodic care to providing prevention and wellness opportunities that improve patients’ overall health. The other major challenge facing health care today involves increasing economic pressures due to stagnant or decreasing reimbursements coupled with additional regulatory obligations. Philanthropic support will undoubtedly continue to grow in its importance in order for these challenges to be met.
INSIDE: Answers from more Northeast Ohio health care leaders on what it will take to be a leader in the future. Page 15
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DR. VIOLETTE RECINOS Pediatric neurosurgeon Brain Tumor and Neuro-Oncology Center, Cleveland Clinic
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onesty and compassion. Those are the values Dr. Violette Recinos, a pediatric neurosurgeon, keeps in mind when she speaks with the parents of her young patients. The nature of her specialties — pediatric brain and spinal cord tumors, craniosynostosis and craniofacial reconstruction, and spina bifida and tethered spinal cord syndrome, among other cases — means those conversations are never easy. Dr. Recinos, 36 and a mother of
two small children, approaches those discussions with both empathy — “What information would I want if this were my child?” — and precision in describing the nature of the surgical management program for the patient. “As a parent myself, I certainly can relate to the anxiety they’re feeling,” Dr. Recinos says. “I want to calm their fears but also be realistic about what to expect, the good and the bad.” Dr. Gene Barnett, director of the Clinic’s Brain Tumor and NeuroOncology Center, said doctors who excel as pediatric neurosurgeons “can relate and bond to the
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patient as well as the parent. And that’s really difficult.” Dr. Recinos, he said, “has such grace in how she interacts with children and family.” She also excels in academic settings, said Dr. Barnett, who noted that later this year, Dr. Recinos will be given the Karen Wilson Chair in Pediatric Brain Tumor Research. In her office shelves, Dr. Recinos keeps letters written by children and their families. They’re reminders of the human impact of a career spent in research and a busy surgical schedule. The East Coast native spent her entire educational career at Johns Hopkins in Baltimore, from earning an undergraduate degree in neuroscience in 1998 from Johns Hopkins University to completing
her fellowship at Johns Hopkins Hospital in pediatric neurosurgery in 2010. She was awarded the John Hopkins neuro-oncology research fellowship by the National Institutes of Health from 2006 to 2008. Dr. Recinos joined the Clinic in 2010. She said coming to Cleveland was “the best career move I ever made. … There are no barriers here. If you have an idea, they give you the resources to pursue it.” Her interest in a medical career started early. Dr. Recinos said that as a child, she recalls being “enamored with how the brain works.” Her father was handy, building tree houses for the family, which encouraged a curiosity about using her hands that made a career in surgery appealing. (It didn’t just affect Dr. Recinos; her older brother is an orthopedic surgeon.) Neurosurgery is a male-domi-
nated corner of the medical world, but Dr. Recinos said she has received significant encouragement throughout her career, including from Dr. Henry Brem, chairman of the department of neurosurgery at Johns Hopkins. “It was clear early on that she was someone who cared enormously about other people,” Dr, Brem said. “She understands the depth of love the parents have for their children.” When Dr. Recinos was in college, she said one doctor told her bluntly: “Do you want to have a family and have kids? Then don’t be a neurosurgeon.” Dr. Recinos said that “deflated my balloon a bit,” since she did indeed want a family, but she took the comment to heart as realistic advice for the hard work ahead in balancing career interests and kids. — Scott Suttell
DR. DAVID KAELBER
cate with their doctors, review test results and access their medical histories, Dr. Kaelber said. His goal this year is to increase enrollment to 20%. “(MyChart) provides higher-quality, lower-cost care, and patient satisfaction at MetroHealth has tremendously improved,” said Dr. Kaelber, who also rolled out an e-prescribing system at the health care provider. Dr. Kaelber about two years ago implemented the Care Everywhere program, which enables MetroHealth to share patient clinical information with other health information systems throughout the U.S. So, if a Kaiser patient sees a MetroHealth doctor, that physician has access to the patient’s medical history, which enables doctors to provide faster and more cost-effective care. Most recently, Dr. Kaelber in November was tapped as one of five physicians throughout the country to conduct a five-year study using electronic medical records to examine pediatric diseases and the long-term side effects of pharmaceutical treatments — such as antipsychotic drugs and off-label asthma medications — in 800,000 children. Additionally, MetroHealth under Dr. Kaelber’s leadership recently partnered with Cleveland Clinic spinoff Explorys to conduct a three-month study using electronic medical records of nearly 1 million patients. The study
amassed data from patients at multiple health systems to determine whether a person’s height and weight made him or her more susceptible to blood clots. The results were published in the July 2012 online edition of Journal of the American Medical Informatics Association. Dan Lewis, chief administrative officer at MetroHealth, said the wealth of data being collected as a result of MetroHealth’s vast electronic medical records application resonates in the form of more accurate, efficient diagnoses. “David Kaelber represents taking that data, understanding what it means, and then better treating the patient,” he said. “We’ll be able to predict certain outcomes and intervene more early on, and the outcome is a healthier patient.” Indeed, Dr. Kaelber, who also is an assistant professor at Case Western Reserve University School of Medicine, has set a unique example of integrating his health care practice as a pediatrician with mobilizing technologies that are advancing health care. His work has earned him national recognition in the field of informatics, which intersects a deep understanding of information science and health care. Modern Healthcare, a sister publication of Crain’s Cleveland Business, last year recognized Dr. Kaelber as one of the nation’s top clinical informaticists. — Kathy Ames Carr
BASU
the center recruit him for his current position, which appealed to his desire to play a big role in creating something new. “I would not just be a cog in the wheel,” said Dr. Basu, who lives in Solon with his wife and two young sons. Dr. Basu knows how to take an idea from concept to product, has a good eye for product design and knows when to seek advice from others, said Tom Sudow, director of business development at the GCIC. Dr. Basu is well-rounded — for instance, he enjoys Ohio State football and plays in a summer cricket league — and is well-caffeinated, Mr. Sudow said with a laugh. “He knows where every Starbucks is in the state of Ohio,” he said. — Chuck Soder
Chief medical informatics officer, pediatrician, internist MetroHealth Medical Center
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etroHealth has been at the forefront of electronic medical records use since the late 1990s, and Dr. David Kaelber’s development of this technology since he joined the system has played an instrumental role in propelling MetroHealth into the future of health care. Dr. Kaelber in 2011 spearheaded MetroHealth’s implementation of MyChart, the personal health care record complement of the Epic medical records system. More than 20,000 MetroHealth patients, or about 10% of its patient base, are using MyChart, which allows users to communi-
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“I tell them to grill the hell out of these guys, because that’s what happens in real life,” Dr. Basu said. A native of Kolkata, India, Dr. Basu studied at the Indian Institute of Technology in Delhi before moving to the United States to attend Ohio State, where in 2004 he earned a Ph.D in chemical engineering. After completing his fellowship, he became a scientist at Guidant Corp. in California. He went on to lead an entire product development team, but after three years he and his wife started thinking about returning to the Midwest to raise a family. A friend on the board at the GCIC knew that he wanted to come back and in 2008 suggested
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TRACEY NAUER Director of hospice and palliative care Visiting Nurse Service, Akron General Health System
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racey Nauer’s 17 years of nursing expertise and ability to deliver compassionate care no doubt helped in her being promoted to director of a hospice program that she had joined only one year earlier. Ms. Nauer in January 2012 took over the leadership position for the Hospice of Visiting Nurse Service, overseeing about 100 employees and 150 to 185 hospice patients for the Akron General Health System program. Previously, she had been manager of inpatient services at the organization’s Justin T. Rogers Care Center in Akron. Since Ms. Nauer took over the top spot, the program’s gross patient revenue during her supervision increased about 7.8%, from $15.51 million in 2011 to about $16.72 million in 2012. Ms. Nauer said she’s working on continued improvement, nurturing the patient and family experience and aligning the system with health care reform mandates. “Hospice in particular will have more changes as far as payment reform and mandatory reporting (requirements), so we need to focus on those changes so our organization benefits and prospers,” she said. As a 2013 class member of Torchbearers Akron, a leadership development organization, Ms.
FIRST CLASS OF HARRINGTON SCHOLARS Harrington Discovery Institute University Hospitals Case Medical Center
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en individuals from some of the country’s premiere academic institutions will get a funding boost to further medical research that many in Cleveland believe could transform patient care. The Harrington Discovery Institute at University Hospitals Case Medical Center — the research engine of a broader, $250 million drug development initiative — in December announced the recipients for the inaugural Harrington Scholar-Innovator grant program, which is focused on supporting the nation’s best physician-scientists and their efforts to accelerate promising drug discoveries into treatments for patients. “The effort speaks to our mission to create a national initiative to support the mission of the physician-scientist,” said Dr. Jonathan Stamler, the institute’s director. “That is to support their innovation and to advance it into product that can help people.” The inaugural Harrington Scholars and their associated research were selected from more than 100 applications because of their “innovativeness and potential for impact on human health,” according to Dr. Stamler. The scholars will receive grants of up to $200,000 over two years and, perhaps more importantly, have access to expertise that can help bring these discoveries to market. Those selected are developing
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WHO TO WATCH IN HEALTH CARE Nauer also is directing her energy toward reciprocating the Akron community’s generosity toward the hospice organization. She plans to foster her leadership development and encourage area young professionals to get involved with nonprofits that provide human services. She was elected in November to a three-year appointment on the board of directors for the Midwest Care Alliance, a home, hospice and palliative care nonprofit, and in December was one of 20 Akron General Health System employees selected to undergo 40 hours of waste-containment training to help minimize costs and maximize the patient experience. Ms. Nauer also is a member of Sigma Theta Tau, the national nursing honor society, and served from 2009-2011 on the Ohio Directors of Nursing Administration in LongTerm Care board of directors. She has served on various advisory boards for the Akron community and has filled in as a clinical instructor at the Akron School of Practical Nursing. Her nursing career has evolved through years of working in multiple roles within various Akron-area nursing homes, including as director of nursing at Rockynol Retirement Community in Akron. “Tracey has a lot of skills and management experience that folks 20 years older than her do not have,” said Karen Mullen, president of Visiting Nurse Service and Affiliates. “She’s very eager to learn and open to change.” Ms. Nauer advanced her nursing education at Wayne County Schools Career Center, Stark State College and Walsh University. — Kathy Ames Carr
drugs to treat a range of diseases and disorders, including Lou Gehrig’s disease, diabetes and all kinds of cancer. “The key issue here is that Markowitz there’s a unique capability being put in place here in Cleveland to support discovery that is being by accessed by pipelines across the country,” Dr. Stamler said. Dr. Sanford Markowitz of Case Western Reserve University — the only local scientist tapped as a Harrington scholar — said getting this level of support often is difficult for physician-scientists. “It’s extremely valued to have this early investor type of support,” said Dr. Markowitz, whose research involves a compound that could help with liver regeneration and the treatment of cancer and other diseases. “It shines a spotlight on the work and increases its visibility.” The other Harrington scholars, who will conduct their work at their respective institutions, are Dr. Marc Diamond of Washington University in St. Louis; Dr. Roger Greenberg of the University of Pennsylvania; Dr. Geoffrey Gurtner of Stanford University; Dr. Richard Kitsis of Einstein College of Medicine at Yeshiva University in New York City; Dr. Wolfgang Liedtke of Duke University; Dr. Scott Oakes of the University of California at San Francisco; Dr. Larry Schlesinger of Ohio State University; Dr. Jonathan Powell of Johns Hopkins University; and Robert Wilson of the University of Pennsylvania. — Timothy Magaw
DR. MARCOS DE LIMA Director, Hematologic Malignancies and Stem Cell Transplant Program Seidman Cancer Center, University Hospitals Dr. Marcos de Lima moved to Cleveland last summer to do here what he’s known for internationally: expand bone marrow transplants to more patients and increase patients’ access to clinical trials. It’s an expansion the man who hired him says should mean patients with severe hematologic malignancies who previously had limited choices for treatment can stay in — or come to — Northeast Ohio. “Right now, in the entire state of Ohio, not as many patients are cured using transplantation that could and should be based on national standards,” said Dr. Stan Gerson, who searched for a year before hiring Dr. de Lima as director of the Hematologic Malignancies and Stem Cell Transplant Program at University Hospitals’ Seidman Cancer Center. “Transplantation’s not easy,” added Dr. Gerson, director of the
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“We give people the chance to be treated with new medications, with new approaches that hold the promise of making them better.” – Dr. Marcos de Lima director, Hematologic Malignancies and Stem Cell Transplant Program, University Hospitals Seidman Cancer Center and the Case Comprehensive Cancer Center at Case Western Reserve University. “There’s a good bit of toxicity to the treatment.” Dr. de Lima, who most recently worked at the University of Texas MD Anderson Cancer Center, is known internationally for his focus on high-risk transplantations and transplantations using novel approaches. “I firmly believe that for these diseases for which we don’t have a good treatment, the best treatment is a clinical trial,” Dr. de Lima said. “We give people the chance to be treated with new medications, with new approaches that hold the promise of making them better.” Already being implemented at University Hospitals is a new
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approach that uses focused radiation on the bone marrow itself, rather than the entire body, with the aim of decreasing side effects of the stem cell transplant procedure. Another program under implementation involves combining cell therapy and umbilical cord blood transplants. A study Dr. de Lima authored alongside others was published in December 2012 by the New England Journal of Medicine. It showed that when stem cells harvested from umbilical cord blood are grown in number in a lab and then transplanted, recipients were able to start making new blood faster, cutting down the typical lapse in blood production. A native of Brazil, Dr. de Lima hails from a family of doctors. He has practiced medicine for 26 years, and focuses today on bone marrow diseases, such as leukemia, lymphoma and myeloma. He said he moved to Cleveland because he believes there’s “big opportunity” in the region’s investment in cancer treatment and its focus on biotechnology. Dr. de Lima, 50, lives in Shaker Heights with his wife and their two children. When he isn’t working to cure cancer, he enjoys running and reading science fiction. — Michelle Park
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YOU’RE CLOSE TO GREAT CARE.
The nationally recognized care and expertise of The MetroHealth System is available at 17 convenient locations, so you never have to go a long way to make a great comeback.
For a physician near you, call 216-778-7878, or visit metrohealth.org
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JOHANNA HENZ Executive director Lake County Free Clinic
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n Lake County, when you fall through the health care cracks, you’re likely to fall hard. “This is a safety net that is one layer thick,” said Johanna Henz, executive director of the Lake County Free Clinic. Unlike Cuyahoga County and the Greater Cleveland area, where there generally is a greater abundance of charity care available, the Lake County Free Clinic stands alone within the East Side suburb in the services it offers. The nonprofit, in its 42nd year,
provides medical and dental services to children and adults, serving about 3,000 patients a year with roughly 4,000 services that address both acute and chronic care. But, it’s a program that’s growing, both in terms of the services offered and the size of its budget — accomplishments largely attributed to Ms. Henz, who took over the clinic’s leadership almost three years ago. The Free Clinic budget has steadily increased during Ms. Henz’s tenure, going from $250,000 to just under $400,000 last year and an anticipated $500,000 in 2013, jumps made possible in part by finding new
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funding sources. “She’s been able to get the word out … she’s really solidified our future,” said Rick Cicero, chairman of the Free Clinic’s board and senior vice president of business development for Lake Health. And it was no easy task. “Everything was stacked against her,” he said, pointing to the state of the clinic and economy when Ms. Henz became executive director. In July, the Free Clinic hired a nurse practitioner to help in expanding its caseload. It is believed to be the organization’s first paid practitioner. Additionally, an adult dental clinic — currently staffed with two volunteer dentists offering only extraction services — was added a little more than a year ago. As proof of its need, nearly two months before it opened, the clinic was booked three months out. Ms. Henz said she “stumbled” into the field of free clinic work, coming from a background in mental health. A volunteer role at the Free Medical Clinic of Greater Cleveland served as the initial hook. “There’s just no better mission than this,” said Ms. Henz, who works with a regular group of volunteers, 13 of whom are physicians. “The providers here are people who just love their work.” Ms. Henz, who serves as a board member for both the National Association of Free & Charitable Clinics and Ohio Association of Free Clinics, said she hopes to be able to continue the organization’s progress, whether it’s through expanded space, staff or services. “This clinic’s in a really good position to grow significantly,” she said. “We’re doing a lot of work to lay a good foundation.” — Amy Ann Stoessel
AKRON GENERAL CONGRATULATES
CAROL SANTALUCIA Vice president of patient experience CHAMPS Healthcare, Center for Health Affairs
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arol Santalucia has focused her young business, the Santalucia Group, on ensuring that hospital patients and their families will be treated respectfully. In fact, Ms. Santalucia’s career for the past 30 years has focused on making hospitals more friendly to people who pass through their emergency rooms and operating theaters, endure invasive and uncomfortable tests and have to figure out complicated bills that can appear to be produced in a foreign language. And now, after spending 28 years at the Cleveland Clinic, she’s broadened her scope and is extending her ideas and energy to hospitals across the region. When she entered the hospital world, she said, the job was called guest relations. It was the department that handled complaints. Then it became somewhat more encompassing as hospitals realized they needed to make patients more comfortable in what often were hostile surroundings, and the departments had names like service experience and patient satisfaction. Ms. Santalucia even served a stint as the Cleveland Clinic’s ombudsman. Now the focus is on patient experience or even patient navigation, and today, Ms. Santalucia is the vice president of patient experience for CHAMPS Healthcare. It’s a consultancy that is part of the Cleveland nonprofit Center for Health Affairs, an association of Northeast Ohio hospitals. Her mission is to offer hospitals help in getting their people to better inform patients and their families and make them more comfortable
DR. J. BRANDON WALTERS Associate medical director Hospice of the Western Reserve
Tracey Nauer, RN Director, Akron General Visiting Nurse Service Hospice & Palliative Care
Tracey was selected by Crain’s as one of the leaders to watch in healthcare. Her professional and community accomplishments make Akron General proud to have her as a part of the team.
Most young medical students don’t look to hospice care as their initial field of choice. That’s where Dr. J. Brandon Walters stands out in the specialty typically populated by older and midcareer professionals. “He knows it’s his calling and knows his vocation,” said Dr. Charles Wellman, chief medical officer for the Hospice of the Western Reserve, where Dr. Walters has worked as associate medical director since 2009. Dr. Walters — a 2005 graduate of the Medical College of Ohio in Toledo — said he realized at an early point in his education that he was interested in hospice and palliative care. As an undergraduate studying chemistry at Mount Vernon Nazarene University, Dr. Walters had envisioned a future focused on research. A trip to India during which he volunteered at a mission hospital, however, altered those plans.
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“It’s no longer enough to be a good, strong patient advocate who handles complaints. You’ve got to think of it more broadly and be more proactive instead of reactive.” – Carol Santalucia vice president of patient experience, CHAMPS Healthcare in their hospital experience. “It’s no longer enough to be a good, strong patient advocate who handles complaints,” she said. “You’ve got to think of it more broadly and be more proactive instead of reactive.” This facet of hospital life is growing in importance as hospitals have gotten bigger and health care has grown in complexity. In addition, health care organizations, in particular Medicare and Medicaid, are expecting hospitals to become more customer friendly. In fact, those that score poorly on surveys of patient experience could lose 1% of their federal reimbursement. “It’s a very exciting time for patient experience and navigation, and Carol truly is in the forefront,” said Deanna Moore, the Center for Health Affairs’ vice president, corporate communications, in suggesting Ms. Santalucia as someone to watch in health care. “Even though the line just launched in the fall, she’s already working with six hospitals and health systems and there are also quite a few potential clients in the pipeline.” A key element of the CHAMPS program that the Santalucia Group will run is designed to help hospitals improve communications skills for all employees, including aides, billing clerks, nurses and doctors. Ms. Santalucia also is active in the Society for Healthcare Consumer Advocacy and will begin a term as president in the spring. — Jay Miller
“We worked to help them be comfortable … it was a very moving experience,” he said. Today, the Coshocton native still is working to ease the pain of those facing life-limiting chronic or terminal illnesses. As associate medical director, he assists in patient care and case management, bringing a comprehensive mindset that addresses the myriad physical, psychological and social issues faced by both a patient and his or her family. “Our goal is to bring everyone together and take care of the patient as whole,” Dr. Walters said. In addition to patient care, Dr. Walters also has been active on the administrative side, focusing on the effective implementation of electronic health records. “He uses technology to improve care,” said medical officer Dr. Wellman. Education also is a passion for Dr. Walters. He is intent on spreading information about hospice and palliative care nationally, as well as advancing research efforts in the field. And while hospice care is no doubt a specialty that is stressful, it’s one that Dr. Walters sees as vital to medicine, especially given the aging population. “If you didn’t feel something, I’d wonder what was wrong,” he said. — Amy Ann Stoessel
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WHAT THE HEALTH CARE COMMUNITY IS SAYING CLAIRE ZANGERLE President and CEO Visiting Nurse Association of Ohio ■ What attributes are necessary to be a leader in the health care sector of tomorrow? Energetic: Health care leaders must have an endless supply of energy to survive in health care. It is a 24/7 business and constantly changing — that takes energy. And where there are goals, passion and positive attitude, there is energy, which leads to success. Balancer of dichotomies: A savvy health care leader knows this is serious business, employing the same principles as Fortune 500 companies. At the same time, the humanistic side of health care must be taken into consideration. Be a “doer”: Don’t just watch — do! As a leader, always prioritize and understand that 20% of daily activities have 80% of impact on the business of anything — including health care. Positive attitude: A sincere orientation of seeing challenges as opportunities. Sales skills: Health care leaders are not used to “selling their products.” If someone is sick, of course they will choose us to care for them — not true anymore. Health care leaders must convince potential patients and referral sources to “buy” what you are “selling.” Personality: Have one! Rela-
tionships are key in health care, and leaders must cultivate and nurture them. ■ From your perspective, what are some of the most significant challenges in health care going forward? Bridging the gap between the acute care setting and the postacute care setting. Patient care does not stop at discharge — it is a continuum. Planning for care after discharge must start at admission. If that truly occurs as it should, there would be significant strides in patient outcomes. Providing care to the uninsured and underinsured with limited gap funding. Replacing the aging health care worker with competent, dedicated workers with a similar work ethic and dedication to the profession.
DR. ROBERT KENT President and CEO Summa Western Reserve Hospital ■ What attributes are necessary to be a leader in the health care sector of tomorrow? The ability to deconstruct historical approaches to health care is an attribute that will prove valuable as we move into the future. Leaders must rethink the way in which we deliver care — the patient’s needs and desires are paramount, their choice of not only who delivers the care, but
how and where, will drive our success, and we have to anticipate those choices and stay ahead of them in our actions. Leaders will also need to focus on organizing care versus simply targeting growth as a goal in the future. Understanding the longterm implications of changing health care legislation and how those changes affect reimbursement, means we must be able to organize care — delivery, staff and locations — to improve the wellness of our communities. We must focus on redefining what we do in more efficient and effective ways, not simply add layers, buildings and people to our organizations. ■ From your perspective, what are some of the most significant challenges in health care going forward? Thoughtful, positive and productive collaboration among and between multiple health care institutions will be a significant challenge in the next several years. The past 18 months have seen a record number of closings as well as purchases and mergers, often by health care industry partners that, before this time, would not have been identified as a candidate for that role. This activity is only going to increase, and for the partnership to offer long-term value to the participating institutions, and more importantly to the communities served, the collaboration must offer more than lip service. Patient engagement will become an even more important challenge as meaningful use and accountable care come fully into our operations. Educating and
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providing patients with tools they can use to understand, track and better control their health, and ultimately their care, is a responsibility we must address.
PATRICIA DEPOMPEI President UH Rainbow Babies & Children’s Hospital, UH MacDonald Women’s Hospital ■ What attributes are necessary to be a leader in the health care sector of tomorrow? Health care is an ever-changing business. Health care delivery is extremely complex and requires provision of preventive care, care for minor illness, technologically complex critical care, care for chronic diseases and end-of-life care for patients with extremely diverse needs and backgrounds. Our team must be ever ready to provide excellent, quality care. Health care leaders must empower and coach all team members to be their best. This requires a leader willing to truly listen and create an approachable, supportive environment. It is important leaders nurture strong, collaborative relationships among multiple roles and departments. Leaders must be able to inspire a shared vision, and this requires passion, energy and enthusiasm. The successful execution of a vision requires a leader who is also pragmatic, and willing to take calculated risks. The leader must role model expected behaviors and be
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ever vigilant and attune to the little things that make a difference. Lastly, a great leader absolutely must be honest, compassionate and trustworthy. We take care of patients often during vulnerable points in their lives, and it is important that we meet their unique needs in a caring and professional manner. ■ From your perspective, what are some of the most significant challenges in health care going forward? As care providers for women’s and children’s services, our team shares the common goal of making certain all women and children have access to high-quality, medically appropriate and costeffective care, despite the challenging economic environment. Another significant challenge for us is there are specific health issues related to women and children that impact the manner in which we structure our care delivery. For example, rising rates of obesity have contributed to a sharp increase in pregnancy complications in the United States. While many efforts are under way nationally to address the underlying causes of obesity, we have worked diligently to train our staff to implement an evidenced-based teamwork system to optimize patient outcomes and ensure rapid responses to delivery room emergencies. Lastly, we need to remain focused on training the next generation of health care providers, and finding cures for diseases so that we can optimize the health of patients we care for today, as well as our future population.
YOUR CHOICES DON’T HAVE TO END. Choose the hospice of choice. Illness can make you lose control. Hospice of the Western Reserve gives it back. As Northern Ohio’s most experienced and most referred hospice provider, we offer more options to personalize care. Through specialized, quality care for a variety of illnesses, we can help you live your life. Discover why the hospice of choice is Hospice of the Western Reserve. Visit HospiceOfChoice.org.
855.852.5050 HospiceOfChoice.org
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WWW.CRAINSCLEVELAND.COM
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LARGEST ARCHITECTURAL FIRMS RANKED BY LOCAL REGISTERED ARCHITECTS Local registered architects Name of firm Address Rank Phone/Website
01-1-2013 01-1-2012
Local office revenue (millions) Total staff
2012
2011
Major current projects
Top local executive Title
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Westlake Reed Leskosky 1422 Euclid Ave., Suite 300, PlayhouseSquare, Cleveland 44115 (216) 522-1350/www.wrldesign.com
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45
140
NA
$25.0
Taiwan & Beijing Theatres; American Revolution Museum; Smithsonian Institution; Renwick Gallery; Point Park University; George Mason University master plan; University of Mount Union; Pro Football Hall of Fame
Paul E. Westlake Jr. managing principal
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GPD Group 520 S. Main St., Suite 2531, Akron 44311 (800) 955-4731/www.gpdgroup.com
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395
$53.3
$42.2
Cuyahoga County Library; Parma Library; Akron Buchtel High School; McDonalds; Jo-Ann Fabric and Craft stores
Darrin Kotecki president
3
Herschman Architects Inc. 25001 Emery Road, Suite 400, Cleveland 44128 (216) 223-3200/www.herschmanarchitects.com
22
20
50
$9.5
$8.5
Applebee's; Bed Bath & Beyond; Best Buy; Dick's Sporting Goods; H.H. Gregg Mike Crislip Co.; Jo-Ann Fabric and Craft; Staples; Total Wine; Menorah Park; Temple president Israel; Fringe; Melt
3
KA Inc. Architecture 1468 W. Ninth St., Suite 600, Cleveland 44113 (216) 781-9144/www.kainc.com
22
19
44
$10.0
$10.0
Eaton Center, Beachwood; Fashion Outlets of Chicago, Rosemont, Ill.; Bayer G. Burk Pharmaceutical headquarters, Whippany, N.J.; Progressive Field Premium Club John president renovation
3
URS Corp. 1375 Euclid Ave., Suite 600, Cleveland 44115 (216) 622-2400/www.urscorp.com
22
28
307
$56.0
$53.0
Flats East Bank; Medical Mart/Convention Center; Cuyahoga County Library, Mayfield branch; GCRTA University Circle Station
Dana S. Mitchell vice president
6
Vocon 3142 Prospect Ave., Cleveland 44115 (216) 588-0800/www.vocon.com
18
17
100
$18.5
$24.4
Goodyear; GMAC; Jones Day; AmTrust; Calfee; Ametek; Britton Gallagher; Dwellworks
Deborah V. Donley principal
7
Hasenstab Architects Inc. 190 N. Union St., Suite 400, Akron 44304 (330) 434-4464/www.hasenstabinc.com
17
18
36
$7.4
$6.3
Ohio Department of Mental Health; Akron Children's Hospital; Summa Health System; John Carroll University; Akron Zoological Park
Dennis Check president
7
TDA Architecture 4135 Erie St., Willoughby 44094 (440) 269-2266/www.thendesign.com
17
13
39
NA
$5.0
Lorain High School, Highmark Stadium; Notre Dame College athletic facilities; Goodyear Hall redevelopment; Willoughby-Eastlake City Schools; Hoover Complex; Pittsburgh Hilton Garden Inn; Ritz Carlton national prototype
Robert A. Fiala managing partner
9
Bostwick Design Partnership 2729 Prospect Ave., Cleveland 44115 (216) 621-7900/www.bostwickdesign.com
16
17
41
$5.8
$5.2
Baldwin Wallace University, Beech St. residence halls; Lutheran Hospital, emergency department; Marymount Hospital, surgery; Cuyahoga County Public Library, Garfield Branch; Kent State University, College of Technology
Robert Lewis Bostwick president, director of design
9
Perspectus Architecture 13212 Shaker Square, Suite 204, Cleveland 44120 (216) 752-1800/www.perspectusarch.com
16
17
33
NA
NA
Cleveland Clinic; University Hospitals Case Medical Center; Brookdale Senior Lawrence Fischer Living; MetroHealth System; Summa Health System; Kent State University; The William Ayars Ohio State University; U. S. Coast Guard managing principals
11
Bialosky + Partners Architects LLC 2775 S. Moreland Blvd., Cleveland 44120 (216) 752-8750/www.bialosky.com
15
14
34
NA
NA
American Greetings corporate headquarters; Crocker Park Phase-III; Ursuline College CCHA; Muskingum College library; 73-75 Sullivan St. housing; 401 Lofts student housing; Portage Crossing; Meri Brass; Parkwood Corp. headquarters
11
Domokur Architects 4651 Medina Road, Akron 44321 (330) 666-7878/www.domokur.com
15
16
31
$5.4
$7.6
Kent State University, Tri Towers renovation; Union for Reform Judaism, Camp Michael Domokur Kutz, R.I., and Camp Harlem, Pa.; Victory Building, Cleveland owner
13
Richard L. Bowen + Associates Inc. 13000 Shaker Blvd., Cleveland 44120 (216) 491-9300/www.rlba.com
14
14
83
NA
NA
Parmatown Mall; Walsh University, transformative learning; Third District Police Richard L. Bowen Station; Tri-C Police and Fire Academy; COTA McKinley facility; Hard Rock president Racino; Kent Courthouse; Vitamix headquarters; VA Butler Healthcare Clinic
13
Stantec Architecture 3700 Park East Drive, Suite 200, Beachwood 44122 (216) 454-2150/www.stantec.com
14
14
25
$6.5
$6.7
15
ADA Architects Inc. 17710 Detroit Ave., Lakewood 44107 (216) 521-5134/www.adaarchitects.cc
13
12
38
NA
15
Dorsky + Yue International 23240 Chagrin Blvd., Suite 325, Cleveland 44122 (216) 468-1850/www.dorskyyue.com
13
12
48
17
C.C. Hodgson Architectural Group 23240 Chagrin Blvd., Suite 350, Cleveland 44122 (216) 593-0057/www.ccharch.com
12
10
18
Moody Nolan Inc. 4415 Euclid Ave., Suite 100, Cleveland 44103 (216) 432-0696/http://moodynolan.com
10
19
Harris/Day Architecture 6677 Frank Ave. NW, North Canton 44720 (330) 493-3722/www.solharrisday.com
19
Jack A. Bialosky Jr. senior principal
The Ohio State University CBEC Building; University of Akron College of Education; Cleveland Institute of Art; NASA Glenn Research Center, Building 151; Tri-C Westshore classroom building
Michael Reagan, vice president, science and technology; Michael R. Carter, managing principal
NA
National retail - large, medium and small box stores, shopping centers; renovation and adaptive reuse; educational K-12, child care, senior living, supermarkets and office
Martin Strelau, president; Kurt Schmitz, Dan Saleet, vice presidents, directors
NA
NA
Easton Town Center Phase II; Crocker Tower, Fla.; Shops at Nanuet, N.Y.; Bridges mixed-use, Ind.; Palm Beach Mall, Fla.; Element Residential Tower, Fla.; Winnipeg Regional Center, Canada; Dolmabahce mixed-use, Istanbul
William Dorsky managing principal
40
NA
NA
Erie Veterans Affairs Community Living Center, Pa.; Friendship Village CCRC, Pa.; Village on the Green CCRC, Fla.; Bethesda Home, Ill; Montefiore Hospice; Baptist Life Communities, Ky.; DGN Affordable Housing, Fla.
Cornelia C. Hodgson president
10
14
NA
$1.5
NA
Lester Cumberlander director, Cleveland operations
9
10
19
$2.0
$3.7
Stark State College, downtown energy facility; Green Local Schools K-12 facility; Eric Snow YMCA, Canton; Mount Vernon Nazarene athletic facility; Bolivar Fire Station; Plain Township Fire Station
Domenic Ferrante partner, COO
RDL Architects Inc. 16102 Chagrin Blvd., Suite 200, Shaker Heights 44120 (216) 752-4300/www.rdlarchitects.com
9
5
22
$3.5
$2.8
Arhaus Furniture; Country Meadows, Easton; Pinstripes, Oakbrook, Ill.
Ron Lloyd president
19
Richard Fleischman + Partners Architects Inc. 1020 Huron Road, Suite 101, Cleveland 44115 (216) 771-0090/www.studiorfa.com
9
10
26
$2.7
$2.9
University of Cincinnati; J.W. Peck Federal Building, Cincinnati; Cuyahoga County Public Library, North Royalton; Cuyahoga Community College; Cleveland Public Power; PNC, Cleveland
Richard Fleischman president
22
The Austin Co. 6095 Parkland Blvd., Cleveland 44124 (440) 544-2600/www.theaustin.com
8
8
82
$49.0
$48.0
NA
Michael G. Pierce president
22
CBLH Design Inc. 7850 Freeway Circle, Cleveland 44130 (440) 243-2000/www.cblhdesign.com
8
9
15
NA
NA
Dayton VA Medical Center; CWRU; MetroHealth; Veterans Administration; Pittsburgh Healthcare System; EMH; Southwest General Health System; BGSU; Cleveland Clinic; OSU Medical Center; GSA; Wade Park VAMC
Marc B. Bittinger Michael D. Liezert principals
22
Herman Gibans Fodor Inc.- Architects 1939 W. 25th St., Suite 300, Cleveland 44113 (216) 696-3460/www.hgfarchitects.com
8
8
19
$2.3
$2.2
The Slovene Home, Cleveland; Benjamin Rose headquarters, Cleveland; Anna Maria of Aurora; The Atrium at Anna Maria of Aurora; The Westerly III, Lakewood; Maple Park Place senior housing, Maple Heights
James G. Herman president
22
Robert P. Madison International Inc. 2930 Euclid Ave., Cleveland 44115 (216) 861-8195/www.rpmadison.com
8
10
17
$1.2
$2.8
Medical Mart & Cleveland Convention Center; Cleveland Airport parking redevelopment program, Seiberling K-6 School, Akron Public Schools
Robert P. Madison chairman, CEO
26
Makovich Pusti Architects Inc. 111 Front St., Berea 44017 (440) 891-8910/www.mparc.com
7
8
14
NA
NA
Youngstown Air Force Reserve, medical squadron command post addition; Louis Stokes Cleveland Veterans Administration, surgery addition; Cleveland Clinic 2012 common space upgrades; Cleveland Clinic patient room upgrade
Ronald J. Makovich president
26
TC Architects Inc. 755 White Pond Drive, Suite 401, Akron 44320 (330) 867-1093/www.tcarchitects.com
7
7
22
NA
NA
Signet Development/NEOMED, Health Wellness and Medical Education Center and student housing; Akron Public Schools, King Community Learning Center; Lake Metropolitan Housing Authority, River Isle renovation
Robert C. Chordar president
26
Van Auken Akins Architects LLC 1422 Euclid Ave., Suite 1010, Cleveland 44115 (216) 241-2220/www.vaakins.com
7
6
22
$4.0
$3.8
Cleveland Medical Mart and Convention Center; Cleveland Hopkins International Airport, terminal facade and ticketing lobby improvements; Federal Reserve Bank of Cleveland, renovations
Jill V. Akins principal
Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com.
RESEARCHED BY Deborah W. Hillyer
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Airports: Many don’t operate at capacity continued from PAGE 1
Those in the room clearly understood that without public money — which comes from aviation-user fees — their airports would not have the funds to lengthen runways to accommodate modern business jets or even just to keep runway pavement meeting safety standards. “We want to see what role these airports play in each community,” said Marie Keister, a consultant working on the study for ODOT, in opening last week’s meeting. “At the end of the study, there will not be a recommendation to close any airport, but there will be a recommendation for a framework of decision making. “We may find that there is a (lack of service) in one area,” Ms. Keister said. “But there is another part of the state where there are (several) small airports and there are a lot of redundancies, and that is going to give ODOT and the FAA (Federal Aviation Administration) pause.”
Economic propeller It was clear from the questions and comments that many communities consider their airports vital economic development tools that should be kept open, even though it’s a struggle to balance the books. Chuck Wiedie, economic development director of Hudson, said after the meeting that he believed if nearby Akron Fulton International Airport closed it would make Hudson less attractive as a place to locate or expand a business, even though a number of airports are within a reasonable driving range. But, Mr. Wiedie also realized that with fewer airports, the available public money would improve those that remained open. Jeffrey Gorman, president and CEO of Gorman-Rupp Co., said his company relies on Mansfield Lahm Regional Airport to ferry customers to its Mansfield headquarters. He said his company pilot last year made about 50 trips into Mansfield with customers. The firm’s airplane, he said, “is one of the most successful sales tools we’ve ever gotten.” Gorman-Rupp makes industrial pumps and had sales of $359 million in 2011. State money for capital improvements at airports has declined in recent years, and it shows no signs of a rebound. Local bodies are similarly strapped and unable to provide the local match for capital improvement grants. General aviation airports serve all private aircraft, from single-engine propeller planes flown by weekend pilots and those used by flying schools to corporate jets. Their revenues come from landing fees, rental of hangar space and from the sale of aviation fuel. The public agency operating the airport — usually a city or county commission — is on the hook to cover any operating losses, which is a common reality.
High-flying costs Airports are expensive and not all the state’s general aviation airports operate anywhere close to capacity. A 2006 state airport system study found that total general aviation operations — takeoffs and landings — at individual public airports ranged from more than 100,000 operations annually to as few as 200. Total operations at all 97 airports were 3.4 million. Another airport included in the
“At the end of the study, there will not be a recommendation to close any airport, but there will be a recommendation for a framework of decision making.” – Marie Keister, ODOT consultant study is the Willoughby Lost Nation Municipal Airport, which had 61,370 operations in 2006. It runs a deficit of more than $200,000 a year for the city of Willoughby, which has been negotiating for the Lake County Port Authority to take over the airport. Marshall Eichfeld, president of the Ohio Aviation Association, said
he hopes the state’s airports can stay open because of their role in business attraction and development. “You never know what can happen in the future,” Mr. Eichfeld said. “Think about the new shale development in the east of the state,” which has boosted traffic at airports in the region as oil industry executives come in and out to inspect their operations. Because of their federal support, airports cannot simply close. Under the federal Airport Improvement Program, airports that accept federal grants for long-term capital projects, such as runway lengthening, must refund their federal grants if they are closed during the grant period, which can run for five years or longer. ■
CRAIN’S CLEVELAND BUSINESS
TTI Floor Care is making a hiring push The maker of the ON THE WEB Story from provide superior Hoover and Dirt Devil www.crainscleveland.com tools to meet families’ vacuum cleaner ever-evolving cleaning needs.” brands said it plans to increase The company said the TTI Floor significantly its investment in Care portfolio includes more than engineering, innovation and design 700 active patents worldwide. Dan in the United States. TTI Floor Care, based in suburban Gregory, president of TTI Floor Care North America, said conGlenwillow, said it intends to hire sumers can expect to see even more than 200 new electrical engimore pioneering products that offer neers, mechanical engineers, techboth improved performance and a nicians and industrial designers nabetter cleaning experience. tionwide over the next three years. “We believe that innovation is key “Hoover has always been about to our future success and we are innovation,” said Paul Bagwell, vice president of global product develop- recruiting the best talent in the industry to deliver the best products ment for TTI Floor Care. “We are with exceptional cleaning perforcommitted to creating proprietary technologies across our brands that mance,” Mr. Gregory said.
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Web: Liability insurance sales on rise Flashes: Hazell hiring was key continued from PAGE 3
Insurance insiders say they’re selling more cyber liability insurance and fielding more questions about it, not only from financial institutions but also from large retailers, hospital systems and higher education institutions. The insurance protects against the liability that comes from compensating others because an institution’s cyber security has failed. It also can cover losses and the costs the institution itself incurs because its cyber security has failed. “It is really on everybody’s radar screens, regardless of what business you are,” said Brian Slife, a senior vice president in the Cleveland office of Aon Risk Solutions, a large insurance brokerage. “The interest continues to grow, and it has the last several years.”
Expensive proposition For years, and still today to some extent, the cyber liability insurance on the market has proven expensive and its coverage insufficient, said Joseph W. Bauer, principal and founder of Bauer Advising LLC, who consults with large financial institutions on risk management and cyber insurance in and outside of Northeast Ohio. Notifying all of a bank’s cusBauer tomers about a breach can cost millions, even before a bank pays back any losses incurred, Mr. Bauer noted. “If you’re a bank or money-processing company that knows you’ve been hacked, you have to assume everybody in the hacked environment has potentially been victimized,” Mr. Bauer said. “Personal attention is needed for hundreds of thousands, even millions of individual account holders. “The reason the cyber products are so expensive at present is that right now, the insurance companies perceive the payable losses under them as severe, meaning they will happen and they will be high,” Mr. Bauer said. “Therefore, they’re going to charge a lot for that insurance.” However, Aon’s Mr. Slife noted that prices have come down and coverage has increased, and should improve further in 2013, as he knows a number of insurers want to boost their sales of cyber liability insurance this year. Already in the last few years, there have been year-over-year decreases in its price, Mr. Slife said. There also has been an uptick in the purchase of computer crime coverage to protect companies in the event that funds are stolen from their accounts and their losses are not covered by their banks, said Drew Gunn, senior vice president and director of specialty risk services for Oswald Cos., a Cleveland
“It is really on everybody’s radar screens, regardless of what business you are.” – Brian Slife, senior vice president in the Cleveland office of Aon Risk Solutions insurance brokerage. In the last 18 months, three Oswald clients lost — but later recovered thanks to appropriate insurance — just under $3 million following fraudulent wire transfers, he said. In addition to buying cyber-specific insurance, companies are hiring premier technical talent to improve their Internet security, Mr. Bauer said. He noted that he also recommends companies seek to improve the terms of related insurance, such as business interruption policies.
Close to the vest Representatives for PNC, Fifth Third and other banks said they wouldn’t identify the steps they’ve taken or are taking to address cyber risk for security reasons. “The safety and security of our websites is not something we want to publicly make known,” said Debra DeCourcy, vice president and director of corporate communications for Fifth Third Bancorp, Fifth Third’s Cincinnati-based parent company. To the bank’s knowledge, no customer data was impacted by the attacks it experienced on Jan. 3 and Jan. 8, she noted. “A lot of our customers … they’ve come to expect that that particular channel (online banking) will be available to them,” Ms. DeCourcy said. She said a shutdown “becomes the priority for us.” “It causes us to deploy resources where they normally wouldn’t have to be deployed,” Mr. DeCourcy said. The complexity of the technology used in banking today — online and mobile banking and remote deposits, for example — “is not something banks can handle on their own anymore,” said Jim Kleinfelter, president and senior consultant with Young & Associates Inc., a community bank consulting firm in Kent. “I think there’s a certain resignation to it (cyber attacks),” Mr. Kleinfelter said. “They (bankers) are aware of it, (but) they personally don’t know what to do about it, other than to retain experts and, as a secondary stopgap, buy insurance. They feel it’s beyond their direct control.” Among its services, Young & Associates performs audits to demonstrate to banks where their cyber vulnerabilities lie, and has enjoyed double-digit, year-over-year percentage gains in its revenues derived from providing cyber security resources in recent years, Mr. Kleinfelter said. ■
continued from PAGE 3
Also, since the baseball team’s first appearance last June in the College World Series, the baseball program brought in about $1 million in cash and pledges. “That’s a good indication of the impact of the success we’re having on fundraising numbers,” said Mr. Geis, also the university’s associate athletic director.
Building a winner Kent State president Lester Lefton charged Mr. Nielsen early in his tenure with turning around the floundering football program, which until Darrell Hazell took the reins as coach in 2011 had gone 28-53 over the previous seven seasons under former coach Doug Martin. Despite a solid basketball program, which claims five Mid-American Conference titles and even made it to the Elite Eight of the NCAA tournament in 2002, Kent State longed for a winning football program. A solid football program can help drive a university’s overall enrollment, bring donors to the door and pull in revenue from concessions and ticket sales. To get the football program up to snuff, Mr. Nielsen and his team raised $3 million over the last two-and-a-half years. The effort led to the hiring of better personnel such as Mr. Hazell, a former assistant coach at Ohio State University. In the previous 10 years, Mr. Geis said the program had brought in less than $1.5 million total. “It was a hard sell to get that $3 million and get donors to trust in what we’re saying and for them to believe in the model we put together for football to be successful,” Mr. Geis said. “Now our pitch to alums is to help us keep it there. Don’t help us get there but help us stay there now.” After a rookie season record of 5-7, Mr. Hazell led the Golden Flashes over the last year to an overall 11-2 record, a MAC East championship and an appearance — a loss — in the GoDaddy.com Bowl in Mobile, Ala. Mr. Hazell announced in December he would leave Kent State for the head coaching job at Purdue University, and Kent State subsequently tapped Paul Haynes — a graduate of the university
and former defensive coordinator at the University of Arkansas — for the top job. “That was a huge factor in the success we’ve seen in two years,” Mr. Nielsen said about Mr. Hazell’s hire. “You win with people. That’s my bottom-line assessment. We understand we need facilities and other components to run a successful program, but you’ve got to get the right people in place first.”
Riding the momentum While the Golden Flashes will try to keep the momentum of the football program headed in the right direction under Mr. Haynes’ watch, the development staff for the athletics department hopes the fundraising dollars will continue to pour in. While football is only a piece of athletics as a whole at Kent State, its success has translated to other areas, particularly in the fundraising arena. “It becomes an easier pitch all around,” Mr. Geis said. “When I’m talking to a field hockey or women’s soccer alum, I don’t have that hurdle to get over. They all want to see football win. They want to see football be successful.” Mr. Geis said about $36 million of the $60 million campaign slated to launch May 3 will be earmarked for construction and renovation projects, with the rest going toward scholarships. Among the construction work the university is planning is a $4.5 million addition to its field house near Dix Stadium, which will house new locker rooms for the field hockey, women’s soccer, track and field and softball programs. Kent State also is plotting a $10 million construction and renovation effort for its Memorial Athletic and Convocation Center. The project would include new space for the gymnastics program, new suites in the heart of the arena, a new mezzanine level and a complete overhaul of the lower bowl area. “We’re competitive, and we like to keep those expectation levels high,” Mr. Nielsen said. “In our business of being in sports, we’re all kind of wired that way. We don’t run away from expectations.” ■
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THEINSIDER
THEWEEK JANUARY 14 - 20 The big story: For the first time, there will be a corporate name attached to the Cleveland Browns’ lakefront home. Akron-based electric giant FirstEnergy Corp. bought the naming rights to what will be called FirstEnergy Stadium. FirstEnergy CEO Anthony Alexander said the deal “is good for Cleveland, it’s good for FirstEnergy and it’s good for the Cleveland Browns.” Terms weren’t disclosed, but the Akron Beacon Journal reported the deal is valued at $102 million over 17 years.
Art of the deal: Case Western Reserve University and the Cleveland Museum of Art agreed to buy jointly for $9.2 million a 4.13-acre piece of land and a building on it owned by the Cleveland Institute of Art. The property will be vacated when the art school consolidates its operations into a close-knit campus on Euclid Avenue in University Circle’s Uptown district. Leaders of the museum and university haven’t developed specific plans for the property, which is at the corner of East Boulevard and Bellflower Road. The deal is expected to close in 2015.
Screen time: Westfield Great Northern, the 1.2 million-square-foot shopping center in North Olmsted, is about to get a makeover. Mall officials announced that a 10-screen Regal Cinemas, three new restaurants and a new main mall entrance will open in December. Mama Fu’s Asian House is the first of three restaurants to sign on to the project. Westfield Great Northern did not disclose the cost of the renovation project. The new movie theater and adjacent restaurants — taking up about 55,000 square feet — will occupy the former food court area between JCPenney and Sears.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Get those Livestrong bracelets ready ■ Minor league baseball teams have a history of gonzo, creative marketing. In that tradition, the Lake County Captains last Friday announced they will host “Lancestrong Night” on June 29, coinciding with the start of the Tour de France bicycle race — an event long dominated by the now-disgraced Lance Armstrong. “It’s certainly the type of promotion that our industry is known for,” said Brad Seymour, general manager of the baseball team in Eastlake, the Class A affiliate of the Cleveland Indians, in a phone interview. “We certainly did it intentionally,” he said of the timing of the event’s announcement, given that Mr. Armstrong the previous night acknowledged to Oprah Winfrey that he had used performance-enhancing drugs and lied about it for years. “It’s a tongue-in-cheek promotion,” Mr. Seymour said. “We are taking something topical and having a bit of fun with it.” In that vein, the team said the 7 p.m. game will begin with a taped recording of Sheryl Crow — Mr. Armstrong’s former girlfriend — singing the national anthem. The Captains are asking fans to wear their Livestrong bracelets — the symbols of the foundation Mr. Armstrong started to boost cancer research — and use them in ring toss games, bracelet stacking and “who can get the most bracelets on their arm” contests
WHAT’S NEW
Next up: Nextant Aerospace, a part of the Directional Aviation Capital group of businesses run by Kenneth Ricci, has a new president. Sean McGeough, who most recently was president of Hawker Beechcraft Corp.’s Middle East, Africa and Asia Pacific group, replaces James Miller, who retired. Nextant pioneered the field of remanufactured business jets. It has delivered 25 Nextant 400XT jets, valued at $100 million in sales, since entering the business in 2008 and has a backlog of $175 million in orders to fulfill.
Muscled up: The new Brandmuscle is based in Chicago, but it should continue to expand its Cleveland office, says the man who founded the local operation. Software developer BrandMuscle Inc. of Cleveland has finalized a longplanned merger with two other companies that specialize in helping businesses customize marketing materials for different audiences. Now the three companies are operating under one name and one management team. That team includes Phil Alexander, founder of the original BrandMuscle. Three more years: Cleveland State University’s board of trustees approved a three-year contract extension for Ronald Berkman, who has served as the university’s president since 2009. The board also approved a pay increase for Dr. Berkman; his annual base salary will rise to $430,000 from $400,000.
Add these ATM lawsuits to the pile ■ Six more local banks have been sued by Carlson Lynch Ltd., a Pittsburgh law firm that has filed dozens of lawsuits against financial institutions, alleging that they have not made their ATMs accessible to the blind. KeyBank, FirstMerit Bank, Valley Savings Bank, Lorain National Bank, First Federal Savings and Loan Association of Lakewood and Western Reserve Bank, now known as Westfield Bank, were named in six class
More rave reviews
THE COMPANY: Buyers Products, Cleveland THE PRODUCT: DumperDogg dump inserts Buyers Products, a maker of products for the mobile equipment sector, says the inserts for pickup trucks are available in steel and stainless steel, for both 6-foot and 8-foot truck beds, as well as in polymer for 8-foot truck beds. The inserts “make pickup trucks more versatile by giving users the ability to have a dump truck without having to purchase or rent a dump truck,” says Brian Smith, marketing manager at Buyers Products. The product is designed in particular for landscapers and contractors “who use pickup trucks for their businesses and need to haul and dump mulch or other material,” he said. DumperDogg inserts feature a structural steel frame with a black powder coat finish for corrosion resistance, the company says. Three-quarter inch tailgate hinge pins provide support for the inserts’ payload capacity of 6,000 pounds. Dump angles on the inserts range up to 40 degrees. The inserts feature a double-pivoting, removable tailgate, according to the company. For information, visit www.BuyersProducts.com.
Send information about new products to managing editor Scott Suttell at ssuttell@crain.com.
action complaints filed on behalf of Rick Harmon and/or Jeanne Gallagher, Ohio residents who are blind. Filed on various days in January in U.S. District Court in Cleveland, the lawsuits seek an injunction mandating that the institutions bring their machines into compliance; the suits also call for the payment of “reasonable attorneys’ fees.” Crain’s previously reported that Carlson Lynch had sued Dollar Bank, Huntington Bank and PNC Bank for similar reasons. Representatives for all but one of the institutions declined comment or did not respond to inquiries before Crain’s deadline. While David T. Shaw, senior vice president and chief administrative officer for First Federal Lakewood, wouldn’t comment on the claim itself, he did say that all the institution’s ATMs are in compliance with the newest standards, which were mandated as of March 15, 2012. Published in September 2010, those new standards require nearly all of a financial institution’s ATMs to have auxiliary aids and services, including voice instructions and headphone capabilities. The recently filed complaints allege that various ATMs, when visited after March 15, were not compliant. Ohio Bankers League spokesman James Thurston said the law firm is “taking advantage of an evolving market condition,” and said it takes time to make the ATM updates. “I don’t think there’s any willful negligence on behalf of the banks here,” he said. — Michelle Park
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
Doubling down: Rock Gaming, the Detroitbased partnership led by Cleveland Cavaliers owner Dan Gilbert, said one of its affiliate companies agreed to acquire a majority interest in the Greektown Casino-Hotel in downtown Detroit. The Rock Gaming affiliate, Athens Acquisition LLC, will acquire Greektown Casino-Hotel owner Greektown Superholdings Inc. in a deal that’s subject to Michigan Gaming Control Board approval. The acquisition is expected to provide Athens Acquisition with majority voting control of the casino, hotel and related assets.
that will take place throughout the concourse level at Classic Park in Eastlake. An in-game Spandex fashion show also will take place on the dugout, with fans voting for their favorite fan who dons the daring fabric. The winner will receive a bicycle. The Captains also will set up an area where fans will be able to write postcards and use stamps from the U.S. Postal Service — a former sponsor of Mr. Armstrong — to mail the cards to friends and family. The promotion is ironic, but Mr. Seymour said the Captains acknowledge that underlying the controversy surrounding Mr. Armstrong is a foundation that has done excellent work on cancer research and has served as an inspiration for millions of Americans. As such, Mr. Seymour said the Captains will donate to the Livestrong Foundation $1 for every Livestrong bracelet worn by fans to the game. — Scott Suttell
■ The hits keep coming for the Museum of Contemporary Art Cleveland and its muchlauded new building. An exhibition called “The Hedge,” which opened last Friday, Jan. 18, at MOCA Cleveland, made a Wall Street Journal list of must-see cultural events last week. In the show, artist Corin Hewitt “will create art while concealing himself in a compressed studio space built for the exhibition,” according to the newspaper. In addition, Pillow magazine, a cultural publication from London, named the MOCA Cleveland building as a finalist for its 2013 Designs of the Year awards in the architecture category. It lauds the innovative design of the building and singles it out for being “both environmentally and fiscally sustainable.” MOCA Cleveland is the only finalist in the architecture category that is in the United States. The six other finalists are in places including Beijing, Copenhagen, London and Seoul.
Hail to the chiefs ■ You probably don’t care much about who serves as chief of staff. But you should, according to a University of Akron political science professor quoted in a recent New York Times story. The paper looked at the process by which President Barack Obama will find a new chief of staff after naming the person currently in the job, Jacob J. Lew, to be Treasury secretary. This is pretty much insideWashington stuff, but the chief of staff selection can have big ramifications on how an administration operates. “I would argue that they are the secondmost-powerful person really in the free world, behind the president and occasionally a vice president like Dick Cheney,” said David B. Co-
hen of the University of Akron, who is writing a book on White House chiefs of staff. “It is the most powerful unelected position,” Dr. Cohen told The Times. “Chiefs of staff are responsible for everything — I mean everything — that comes into the White House.”
Colleges learning a lesson? ■ Colleges and universities appear to be losing some of their pricing power, The Wall Street Journal reported, based on a new survey from Moody’s Investors Service. One-third of the 292 schools that responded to Moody’s survey “anticipate that net revenue will climb in the current fiscal year by less than inflation,” the newspaper noted. For the fiscal year ending this June, “18% of 165 private universities and 15% of 127 public universities project a decline in net tuition revenue,” figures that represent a sharp rise from previous years. The financial pressures “signal that many schools are starting to capitulate to complaints that college has become unaffordable to many American families,” according to the story. At least two dozen private colleges froze tuition this fall — double the previous year’s total. One of those is Wittenberg University in Springfield, which has 1,730 students. It froze tuition at $37,230 for the 2013-14 academic year to help make the college more affordable. “If colleges do not adapt to shifting demographics and the weak economy making families more price sensitive, there will be fewer institutions,” said Wittenberg president Laurie Joyner.
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