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4/2/2010
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$1.50/APRIL 5 - 11, 2010
Vol. 31, No. 14
ON THE WEB
Crain’s fans, listen up There’s another avenue for you to cull business news from Crain’s. Our reporters each week take you behind the news and offer an in-depth analysis of some of the week’s most notable stories. For more perspective on this week’s news, visit CrainsCleveland.com /section/audio.
ShoreBank scales back lending Chicago branches, ShoreBank also is in Detroit. A Pacific Northwest branch is separately chartered and is unaffected by a cease-and-desist order ShoreBank received last July from the Federal Deposit Insurance Corp. and the Illinois Division of Banking that claimed the bank was engaging in unsafe or unsound practices. The practices ShoreBank was rebuked for include “operating with an inadequate level of capital protection for the kind and quality of assets
In response to FDIC mandate, community institution focuses on raising capital levels By ARIELLE KASS akass@crain.com
ShoreBank, a Chicago-based bank focused on community development in urban areas, has curtailed its lending in Cleveland and across its footprint as it tries to raise at least $159 million.
Brian Berg, a spokesman for ShoreBank, said the bank is “continuing to take care of our existing customers” and is raising deposits, but has “curtailed small business lending and real estate lending for several months bank-wide.” In addition to its Cleveland and
Opportunity Corridor plan moves ahead
held,” “engaging in hazardous lending and lax collection practices” and “operating with an excessive level of adversely classified loans.” The bank also was operating with policies that jeopardized the safety of its deposits and resulted in inadequate earnings, the order said. ShoreBank was ordered to return the bank to a “safe and sound” condition, including increasing its capital levels. See LENDING Page 6
FROM START TO FINISH
Committee conceptualizes development along I-490, University Circle link By JAY MILLER jmiller@crain.com
A sour economy and a lack of firm financing haven’t deterred state highway planners and Cleveland community leaders from pressing ahead with the Opportunity Corridor, a $350 million plan to create a 2.75mile boulevard and development zone that would connect the eastern stub of Interstate 490 with University Circle. The Ohio Department of Transportation expects to select a final route for the four-lane road by early 2011, with construction likely to begin in 2015 and to be completed in 2019. That’s a long way off — too long for some advocates — but the project is in a better position now to move ahead than it has been since it was first proposed in 2003 during planning for reconstruction of Cleveland’s Inner Belt. Terri Hamilton Brown, a consultant to the Greater Cleveland Partnership business advocacy group who’s heading a public-private steering committee planning the corridor, said she hopes the committee can complete a community and economic development plan for neighborhoods along the route by Jan. 1 and can win the city of Cleveland’s approval of a land use plan before year-end. The project still needs to line up federal, state and perhaps local money
The Parmageddon, named after Mr. Fish’s hometown of Parma, begins with sharp cheddar and potato and cheese pierogi.
JASON MILLER
Chef Matt Fish is opening a second Melt location in Cleveland Heights.
MELT SPREADS Lakewood’s master of the grilled cheese preps for East Side restaurant opening, sees further growth potential By KATHY AMES CARR kcarr@crain.com
S
ince Melt Bar and Grilled opened its doors in September 2006, the local culinary destination has developed its own brand, a tattoo fan club and a loyal following of customers for the humble grilled cheese. Now the popularity of the Lakewood establishment — with its whimsical variations of the classic American
sandwich along with an expansive beer selection — has prompted chef and owner Matt Fish to expand with a second location that is set to open May 21 at Cedar and South Taylor roads in Cleveland Heights. With the new location, Melt will employ a total of about 110 people, most of whom work full time. If all goes well at the East Side digs, the sandwich artist hopes to expand the Melt concept further;
The sandwich also includes grilled onions and napa vodka kraut, and is served with sweet slaw and fries.
The Parmageddon is served.
See MELT Page 5
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See CORRIDOR Page 13
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SPECIAL SECTION
We spotlight some of Northeast Ohio’s family businesses ■ Page 15
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