20130610-NEWS--1-NAT-CCI-CL_--
6/7/2013
3:34 PM
Page 1
$2.00/JUNE 10 - 16, 2013
Startups’ cash flow slows Many Ohio venture capital firms are out of money to invest By CHUCK SODER csoder@crain.com
Venture capital is becoming a scarce commodity in Northeast Ohio. The amount of money invested
in local startup companies has plummeted over the past several months, and it isn’t expected to bounce back quickly. That’s because many venture capital firms in Ohio have no more money to invest. Some, including active local
firms such as Early Stage Partners and Glengary LLC, aren’t immediately planning to raise new funds. If the amount of venture capital invested locally continues to shrink — a trend that’s also playing out nationwide — it could spell trouble
for the region’s growing community of startups, said Ray Leach, CEO of JumpStart Inc. of Cleveland. It also could throw a wrench into work done by JumpStart and several other organizations created over the past decade to provide seed money and services to young companies.
INSIDE Equity is standing tall Brad Kowit’s group made a $3.4 million cash purchase of Lakewood Center North. The February deal is one of many recent big buys in the area in which brokers are avoiding taking out a bank loan. PAGE 3
See STARTUPS Page 24
ANALYSIS
Cleveland is coming together
h, Gee ... Could a local university president be a candidate to replace the man on the left? Find out on PAGE 3.
Proposed downtown redevelopment is a welcome display of unified leadership By JAY MILLER jmiller@crain.com
suitable partner to challenge Baltimore’s Johns Hopkins and the like on the uppermost tier of American medical education. And officials with both organizations indicate the 165,000-squarefoot medical school building slated for construction near the Clinic’s iconic Sydell & Arnold Miller Family Pavilion on Euclid Avenue is just
Politicians at the federal level are mired in legislative conflict, and the legislative and executive branches of Ohio’s government have been Jackson miles apart for months on tax policy for a budget that must be agreed upon in less than three weeks. It took local government in Cuyahoga Coun- FitzGerald ty to demonstrate what a little cooperation can set in motion. Cleveland Mayor Frank Jackson and Cuyahoga County Executive Ed FitzGerald last week agreed to pool their financial resources and work together to connect downtown Cleveland from Public Square to the
See CLINIC Page 21
See CLEVELAND Page 26
Clinic is digging deeper into education Partnership with Case could help establish health care giant as a force in teaching, too; more buildings possible in future By TIMOTHY MAGAW tmagaw@crain.com
23
Not content only with world renown as a cardiac center, the Cleveland Clinic — in a single
stroke of a pen — boldly is embarking on a path to challenge America’s pre-eminent medical education centers. It’s a new future that will start with a gleaming new medical school building on its explod-
ing campus near University Circle, but it likely won’t end there. The Clinic last week unveiled an $80 million alliance with Case Western Reserve University, ending a long search by the Clinic for a
0
NEWSPAPER
74470 83781
7
SPECIAL SECTION
HIGHER EDUCATION Colleges are placing more emphasis on helping students graduate ■ Pages 15-20 PLUS: SUMMER SCHOOL ■ PROFESSORS AS RECRUITERS ■ & MORE
Entire contents © 2013 by Crain Communications Inc. Vol. 34, No. 23
20130610-NEWS--2-NAT-CCI-CL_--
2
6/10/2013
10:02 AM
Page 1
CRAIN’S CLEVELAND BUSINESS
COMING NEXT WEEK Has the gamble paid off for Cleveland? Has the Horseshoe Casino Cleveland lived up to the hype? Crain’s special section will examine that and much more next week, including poker’s prominence in town, a look back at the casino’s first year and a look at what the future might bring.
REGULAR FEATURES Big Issue .....................10 Classified ....................26 Editorial ......................10 From the Publisher ......10
Going Places ...............14 Reporters’ Notebook....27 Tax Liens.....................12 What’s New..................27
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
THE RISE OF SHALE The Energy Information Administration projects that U.S. natural gas production will rise more than 38% over the next 27 years, with much of the production increase expected to come from shale gas extraction. Shale gas is projected nearly to double by 2040, to 16.7 trillion cubic feet from 8.6 trillion cubic feet this year. Here’s a look at the federal government’s projections on the sources of national gas production: U.S. natural gas production, 2013-2040 (in trillion cubic feet) Year Nonoil Associated Coal bed Nonoil Alaska Tight Shale Total 2013 x-3.51 2.59 1.69 y-1.41 0.31 5.89 8.60 24.00 2020 x-2.97
2.80
1.71
y-1.41
0.28
6.40 11.05 26.61
2030 x-2.31
2.03
1.69
y-1.73
1.19
6.67 14.17 29.79
2040 x-1.87
1.82
2.11
y-2.11
1.18
7.34 16.70 33.14
■ Key: x-Nonoil-associated onshore; Associated: associated with oil; Coal bed: Coal bed methane; y-Nonoil-associated offshore; Tight: tight gas; Shale: shale gas. ■ Source: U.S. Bureau of Labor Statistics; view the report at: tinyurl.com/m4xbz72.
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Rachel Abbey McCafferty (rmcafferty@crain.com) Manufacturing and energy Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim (lgrim@crain.com) Events Manager/Operations & Logistics: Christian Hendricks (chendricks@crain.com) Events Manager/Promotions & Sponsor Relations: Jessica Snyder (jdsnyder@crain.com) Advertising director: Nicole Mastrangelo (nmastrangelo@crain.com) Senior account executive: Adam Mandell (amandell@crain.com) Account executives: Dawn Donegan (ddonegan@crain.com) Andy Hollander (ahollander@crain.com) Lindsie Bowman (lbowman@crain.com) John Banks (jbanks@crain.com) Sales and marketing assistant: Michelle Sustar (msustar@crain.com) Office coordinator: Denise Donaldson (ddonaldson@crain.com) Digital strategy and development manager: Stephen Herron (sherron@crain.com) Web/Print production director: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Lauren M. Rafferty (lrafferty@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com)
Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation
20130610-NEWS--3-NAT-CCI-CL_--
6/7/2013
4:03 PM
Page 1
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
3
Snyder carries intriguing case for top job at OSU
INSIGHT
President at Case is being mentioned as a possibility to take over for retiring Gee By LAURA STRAUB clbintern@crain.com
On July 1, E. Gordon Gee’s office at Ohio State University will sit empty as more than 63,000 loyal students await the appointment of a new president. Could Ohio State alumna and former provost Barbara Snyder, the current president of Case Western Reserve University, fill that void? Officially, Ms. Snyder pledges her allegiance to her current employer. Nonetheless, Ms. Snyder’s background and her accomplishments are precisely the qualities Ohio State’s board of trustees will be seeking in the university’s next leader, observers say. Bruce Johnson, president of the
BARBARA SNYDER BIO ■ Position: President, Case Western Reserve University Career trajectory ■ Snyder was named Case’s president on July 1, 2007, after serving as executive vice president and provost at Ohio State University. ■ She has also served as vice provost for academic policy and human resources, interim VP for university relations, a law professor and associate dean for academic affairs and director of the Center for Socio-Legal Studies at Ohio State. ■ Before joining OSU, Snyder was a law professor at Case. SOURCE: Case.edu Inter-University Council of Ohio, said the Ohio State board will want a candidate who is well-respected academically and has presidential experience — two areas in which Ms. Snyder, president of the academically well-regarded Case Western Reserve since 2007, clearly fits the bill. See SNYDER Page 8
At Talan, employees often have their say MARC GOLUB
Brad Kowit’s real estate investment group purchased Lakewood Center North for $3.4 million.
EQUITY IS GAINING GROUND
Cash deals are becoming more prevalent in big buys By STAN BULLARD sbullard@crain.com
W
hen real estate broker and property investor Brad Kowit presented the idea of buying the 15-story Lakewood Center North office building to his stable of investors, the question of seeking a bank loan for the deal did not even come up. See EQUITY Page 11
Cleveland metal stamping company holds roundtable chats with CEO By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
Leaders at Talan Products Inc. wanted “accurate feedback” from employees about what was and was not working at the Cleveland metal stamping company, says CEO Steve Peplin. So, they asked. Rather than relying strictly on surveys, which can be generic, Talan Products’ management began implementing what it calls “CEO roundtables,” according to Kathy Rhubart, the company’s human resources manager. Talan has about
55 employees and annual revenue of around $25 million. In these biannual meetings, small groups of employees spend about an Peplin hour talking with Mr. Peplin about whatever is on their minds. Those topics have ranged from deep cultural problems to kitchen cleanliness, Mr. Peplin said — and all concerns are welcome. Mr. Peplin said he was going to ask whether employees wanted to change how often the meeting happened; it has been every six months so far. Nancy Oates, a senior buyer who has been with Talan for about three years, said she loves the process. “Everybody can say anything they want,” she said. See TALAN Page 25
THE WEEK IN QUOTES “(Our name) is not Johns Hopkins University or UCLA, it’s the Cleveland Clinic. There was a lot of perception about us that we were not educators, but I think this (building) is a terrific opportunity to be more common in that world.”
“I’m all for anything that would improve the downtown environment. I just want to make sure it fits into whatever larger plan there is. I want to avoid too many different projects running in different directions.”
— Dr. Toby Cosgrove, CEO, Cleveland Clinic. Page One
— From a response in The Big Issue. Page 10
“When a student stubs his or her toe academically, their first response shouldn’t be to leave the university. … Their first response should be they love it here, they’re part of a community and can get help. That’s what we aim for.”
“You need to understand that kids that age have big, big dreams … unrealistic dreams. … You have to have enough diplomacy not to crush those dreams but skills to help refine them some.”
— Todd Diacon, senior vice president for academic affairs and provost, Kent State University. Page 15
— Ella Kirk, chairwoman of the Modern Languages and Classics Department at Hiram College. Page 19
20130610-NEWS--4-NAT-CCI-CL_--
4
6/7/2013
10:33 AM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Sears showroom will give new, ‘upscale’ approach
LEASED 7800 COCHRAN RD GLENWILLOW, OH
Newmark Grubb Knight Frank is pleased to announce a 200,928 SF long-term lease at 7800 Cochran Rd. in Glenwillow, Ohio. Terry Coyne and Jeff Kennedy represented the landlord:
JUNE 10 - 16, 2013
Visit
TerryCoyne.com Or Call Terry at
216.453.3001 1350 Euclid Ave, Ste. 300 Cleveland, Ohio 44115
Are you red of a distributor who can’t deliver? Then depend on a locally owned and operated distributor of quality janitorial and paper products since 1976.
Ohio Valley Supply & Maintenance Co. Call for a catalog: (216) 771-0110
FREE Next Day Delivery 2122 St. Clair Ave. Cleveland, OH ohiovalley@cox.net
Department store spinoff will debut in the area this fall at Crocker Park By STAN BULLARD sbullard@crain.com
Look for another iteration of the venerable Sears name and a different retail strategy associated with it this fall in Northeast Ohio. This time it’s the Sears Home Appliances Showroom. It’s a small-format store devoted exclusively to white goods, such as washers, dryers, dishwashers, cook tops and refrigerators, that will appear in the Cleveland market for the first time at the Promenade at Crocker Park in Westlake. Another appliance showroom is in the works at a stillunidentified Streetsboro site. The stores belong to a public com-
Jacobs Real Estate Services LLC as owner’s representative, is pleased to announce a lease with
Signature Optical, Inc. at
One Chagrin Highlands Signature Optical was represented by North Pointe Realty, Inc. Scott Simon, President
Leased and managed by:
For leasing information, call
John Klayman or Cindy Greiner at 440-871-4800 www.JRESGroup.com JRES is a fully integrated third-party commercial real estate firm providing: property management • leasing • development and planning • brokerage services • construction management
STAN BULLARD
A Sears Home Appliances Showroom will appear in the Cleveland market for the first time at the Promenade at Crocker Park in Westlake this fall. pany, Sears Hometown and Outlet Stores Inc., that was spun off last year by Sears Holdings Corp., which continues to run the Sears department stores. Sears Hometown licenses the Sears name from Sears Holdings and acquires Sears-branded products through it. The objective of the showroom stores is to beat online retailers at their own game. “We turn showrooming on its ear,” said Scott Nichols, director of franchise business development for Sears Hometown and Outlet Stores. He was referring to the practice of shoppers who go to bricks-andmortar retailers to check out merchandise they’re interested in, then order the merchandise online instead if they can find a better price. “These stores are solution centers,” said Mr. Nichols, who noted that many of the stores are franchise operations. “Shoppers can look around and see what they want. If they say they’ll go home to look for a better price, we say, ‘We’ll match that price here.’ They don’t have to go home and buy it.” While sales associates at electronic and appliance sections of traditional Sears stores also sell against online prices of other retailers, Mr. Nichols said employees at Sears Home Appliances stores approach sales in a more consultative, educational fashion. Sears Hometown said in a Feb. 12 Securities and Exchange Commission filing that the showrooms offer convenience and even will open by appointment. With small formats of about 4,500 square feet, as at Crocker Park, the stores are designed for lifestyle shopping centers and open air shopping centers at locations where Sears Hometown would not cannibalize appliance sales of Sears department and hardware stores. “This is a more upscale Sears format,” Mr. Nichols said. “The quality of the finishes, the lighting and presentation are upscale. Our target is the ‘soccer mom’ in locations where we pinpoint a gap in our appliance sales.” Mr. Nichols said another Sears
Home Appliances store is in the works in Streetsboro, but he declined to provide details. He said he hopes to add at least two more locations in Northeast Ohio, but that may be difficult because of Sears’ extensive coverage of the market.
Franchisees favored The company is creating and launching the Westlake store, but plans to sell it later as a franchise, Mr. Nichols said. A Texas franchisee he declined to identify specifically is interested in the Westlake location. In its Feb. 12 SEC filing, Sears Hometown said franchising allows it to expand its brand at a lower cost than traditional department store formats. The filing indicated there were 85 Sears Home Appliances showrooms open, with 56 of them operated by franchisees. Mr. Nichols said a total of 45 showroom stores are in development around the nation. At Crocker Park’s Promenade section, the Sears Home Appliances will be in a part of the shopping center anchored by a Giant Eagle supermarket and a Bed, Bath and Beyond. A Nordstrom Rack is under construction there in a former Borders Books & Music store. Lisa Schwan, director of communications at Crocker Park co-developer Stark Enterprises of Cleveland, said in an email that Stark is “very excited to have (Sears Home Appliance) join our merchandise mix.” She noted there also is a Sears Appliance and Hardware store — a different format combining hardware and appliances — at Stark’s Shops at Fairlawn retail center near Akron. While Westlake now has a profusion of retailers, the new Sears appliance showroom won’t compete directly with a Best Buy store — the city is served by Best Buys in Avon and North Olmsted — or HH Gregg, which is in North Olmsted. A Kmart store on the opposite side of Detroit Road in Westlake also sells Sears appliances. However, a Sears Hometown spokeswoman said the company sees Kmart as a separate company. ■
Volume 34, Number 23 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
20130610-NEWS--5-NAT-CCI-CL_--
6/7/2013
10:39 AM
Page 1
JUNE 10 - 16, 2013
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
5
Fifth Third is banking on better relationships with new design Interactive layouts feature kiosks that take place of tellers behind counters By MICHELLE PARK mpark@crain.com
Only 15 of Fifth Third Bank’s 1,320 branches sport this new look and feel, and the newest of them is in Cleveland. The Cincinnati-based institution opened its first “bank of the future” in Ohio in the city’s Slavic Village neighborhood last Monday, June 3. The location is outfitted with a more interactive layout, with teller kiosks instead of a teller line. The setup enables front-line employees to step out to greet clients rather than doing so from behind a counter. “The breakup of the teller line is absolutely new,” according to Paul McHugh, assistant vice president and financial center manager for the branch. “You’re just not like, ‘Next, next,’ ” he said. “It’s relationship banking.” Those front-line employees — or financial service representatives, as they’re called — can use back-office space to review customer accounts more privately, see to the completion of applications and close loans themselves, Mr. McHugh said. One of the offices has a desk the height of a cocktail table for quick, standing service. “A lot of customers, they don’t want to sit down,” Mr. McHugh said. “ ‘Hey, I’m on lunch,’ ” he quoted some as saying. “ ‘Can we be in and out?’ ” Local Fifth Third executives aim to leverage the new location to do more small business lending in the area, Mr. McHugh said. “Slavic Village has 300 businesses, and so we felt, ‘Hey, that’s where we want to be,’ ” he said. “There’s good opportunity.” To enter the branch, individuals must pass through a corridor with a metal detector. It is only once they’ve been scanned and cleared that the second front door will open for them. The newest branches’ amenities are well received across many demographic segments, but also particularly effective for low- to moderateincome neighborhoods, said Jerry Kelsheimer, president and CEO of Fifth Third’s Northeastern Ohio affiliate. For one, the conversation room, which has colorful, upholstered chairs arranged around a flat screen, lends itself to small financial literacy classes. The computer station available for public use is a likely convenience for people who have limited computer access at home, but who want to use online banking and pay bills, Mr. Kelsheimer said. A grand opening of the branch at 6571 Broadway Avenue is slated for June 29. Other amenities include a TV monitor that allows drive-through customers to see the banker with whom they’re transacting business
“The breakup of the teller line is absolutely new. You’re not just like, ‘Next, next.’ It’s relationship banking.” – Paul McHugh, assistant vice president and financial center manager, Fifth Third Bank’s Slavic Village branch and vice versa, and self-service tools such as a coin counter, the use of which is free to Fifth Third cus-
tomers, and an ATM that posts checks immediately to customer accounts. Features such as coin counters, advance function ATMs and customer conference rooms are standard in “green branch” locations of PNC Bank, too, a spokeswoman noted. PNC in July plans to complete upgrades of each of the 250 ATMs in northern Ohio to so-called “DepositEasy” ATMs, which allow the cashing of checks and the withdrawal of $1 bills, she said. ■
MICHELLE PARK
Fifth Third on June 3 opened its first “bank of the future” in Ohio in Cleveland’s Slavic Village neighborhood.
20130610-NEWS--6-NAT-CCI-CL_--
6
6/7/2013
3:17 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
100 ACRE WOODED RETREAT Newbury, Ohio • 2 Be Bedr droo oom m / 2 Ba Bath th C Cot otta tage ge • 2 Car Car Ga Gara rage ge • Po Pole le Bar Barnn
• All All Ut Util ilit itie iess at S Sit itee • Be Beau auti tifu full Wo Wood oded ed A Acr crea eage ge • Po Pond nd oonn Si Site te
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
Revamped American Roll Form ups its orders, adds workers Painesville-based metal fabricating company has had changes pay off By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
FOR MORE INFORMATION, CONTACT: Christopher J. Hondlik, SIOR 216-861-7200 www.ostendorf-morris.com
TRY LIBERTY FOR YOUR
HOME LOAN Great interest rates & most current terms are available, subject to credit approval & program terms
LOW RATES LOW COSTS SUPERIOR SERVICE
216.359.5597 EQUAL HOUSING OPPORTUNITY
SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt
Call For Pricing!! Minimum Delivery: 1Pallet
American Roll Formed Corp. thinks there is strength in change. The Painesville-based metal fabricating company has been putting that idea into action in the last 18 months, bringing in new leadership, opening a plant and implementing a host of new programs. The changes seem to be paying off. In the past year, the company has hired about 15 new employees locally and doubled its order backlog. Now, its leaders are working on a marketing plan to help them enter up to eight new industry sectors across the country, according to director of marketing Christopher Schmitt. John K. Lane, who joined American Roll Form — as the company is known publicly — as its CEO last October, said the employee-owned company has put more formal operating structures in place in the last year and a half. Once a company attains a certain size, it can’t rely on hallway conversations, Mr. Lane said. There must be a concerted effort to encourage collaboration and communication among employees. “You need to have a dialogue,” he said. “You need to have some method of communicating.” Mr. Lane became involved with American Roll Form through his company, Inglewood Associates LLC, a local business advisory firm that American Roll Form retained at the start of 2012. Inglewood told American Roll Form that while its management team was strong, the 53-year-old company would struggle unless it formalized its methods of operation. The fabricator’s board wound up hiring Mr. Lane as CEO. Prior to last October, American Roll Form did not have a CEO, but did have a president, Robert Touzalin. Mr. Touzalin, whom Mr. Lane called an “incredible salesperson,” has stayed on with the company in that role and has focused on sales. Mr. Touzalin, a 38-year employee of American Roll Form who is also a member of the board of directors, said he realized he needed help running the company and planning for its future. He knew it needed a strategic plan, but he didn’t want to take focus away from the sales side, either. Mr. Lane focuses on the overall direction of the company and oversees the day-to-day internal workings and communication. He is still the CEO and managing director of Inglewood, but said he spends about 90% of his time with American Roll Form now.
Down in the pits
1-800-547-1538 Salt Distributors Since 1966
The company has put a number of productivity measures in place already. For example, American Roll Form implemented a customer relationship management system this year to help increase communications between the sales team and the operators on the plant
RACHEL ABBEY MCCAFFERTY
American Roll Formed Corp. in Painesville doubled its order backlog and hired about 15 employees in the past year. floor. Now, the operational team can see what sales are coming down the pipeline, Mr. Lane said. Before, new sales would get dropped into the manufacturer’s lap with little prior notice. “The visibility across the company has increased dramatically,” Mr. Lane said. The company also moved to updating its information in real time and has made physical updates at its two plants in Painesville. The former improvement helps the company plan for the future, Mr. Lane said. The latter improves the plant environment and eases the workflow for employees, said James Martin, vice president of operations. But it’s not all top-down improvements. Mr. Martin said employees have been working to boost productivity in the set-up process. Teams of employees work like a “pit crew,” he said, finding ways to cut down on the time it takes to set up the machines for a new project. They even watch videos of set-ups, like a sports team, looking for ways to improve, he said. While Mr. Martin came up with the program about a year ago, he stays away from the team meetings — he doesn’t want his presence to influence the team’s ideas. And that concept runs through pretty much everything American Roll Form does. “Teamwork here actually means teamwork,” Mr. Martin said. Employees are encouraged to come to work with ideas and find ways to make those ideas happen, he said. While there are standards and guidelines, they often bubble up from the ground level.
Giant-size assistance Mr. Lane said while there are more structures in place now, he’d never want the company to lose its entrepreneurial spirit. It’s that spirit that has helped the company evolve and grow over time. A few years ago, Mr. Lane said, American Roll Form went from a company that just provides customers with a product to one that works with customers to help improve their products. For example, American Roll Form’s engineering team worked with the Little Giant Ladder brand about three years ago to make its
ladders stronger and lighter, said Mr. Schmitt, the director of marketing. The company was able to cut 40% of the weight from the ladder while keeping the product at the same price point. Mr. Touzalin said it was this project that made him realize working with the customers and helping them find solutions to their problems was his passion. Today, the sales engineering team works with customers to create and patent new products. American Roll Form has been expanding its geographic reach, too. In April, the company opened a plant in North Las Vegas. Mr. Lane said the company was losing opportunities out west because of costs such as shipping expenses. It began looking at current and potential customers in that region and decided the time was right to grow. In late December, after about eight months of planning, the company presented its ideas to the board. By April 1, the company not only had leased a building, got machines up and running and hired some employees, but also had produced its first part in the plant. There are a half-dozen employees at that plant now, but American Roll Form would like to see a total staff of 20 to 25 there, Mr. Schmitt said. The company has a total of 130 employees at its three plants, with 15 new hires taking place locally in the past year. Bill Adler, chairman of the Precision Metalforming Association, couldn’t speak to American Roll Form’s success in particular, but said the market for members of his association looks like it’s improving. American Roll Form has been an active member of the Precision Metalforming Association for about 20 years, he said. According to the association’s May business conditions report, more than 80% of its members expect business to remain steady or improve in the next three months. Mr. Adler said he thinks improvements in the light vehicle/automotive industry and the housing market have lead to growth for member businesses. When people are buying houses and cars, there’s more of a demand for items such as appliances and lighting, he said. That demand affects the entire supply chain. ■
20130610-NEWS--7-NAT-CCI-CL_--
6/6/2013
2:24 PM
Page 1
The proof is in the push. Come into an AT&T store today to discover truly instant communication. AT&T Enhanced Push-to-Talk is push-to-talk the way it should be. Come in to test it for yourself, and sign up for a company paid (CRU) line of service. And for a limited time, ask about getting a free device for each line you add when you upgrade your business. Find a store at att.com/storelocator or call 1-800-792-9281.
Corporate Responsible User (CRU) mobility devices and services. Free device requires two-year commitment with eligible voice and data plans plus AT&T Enhanced Push-to-Talk service. Valid for new service activations only on AT&T business wireless service contracts. Standard contract terms and conditions apply. Information on Enhanced Push-to-Talk including terms and conditions can be found online at www.att.com/enhancedptt4. Š 2013 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T afďŹ liated companies.
20130610-NEWS--8-NAT-CCI-CL_--
8
6/7/2013
4:03 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
Snyder: School president plans to stay at Case for ‘many years’ continued from PAGE 3
OSU PRESIDENTS
“The big question for Ohio State is, are they going to recruit a sitting president? And the answer is probably yes,” said Paul Carleton, managing partner at management and investment banking firm Carleton McKenna & Co. in Cleveland and chairman of the board of trustees at Baldwin Wallace University, which engaged in a search for a new president in 2011 and into early 2012. As a result, Ms. Snyder figures to be on Ohio State’s radar, Mr. Carleton said. “If there is a short list out there by a search firm, I’m sure Snyder with her stellar accomplishments at Case a return to OSU would be logical,” he said. Jeff Robinson, director of communications for the Ohio Board of Regents, said the 69-year-old Dr. Gee was particularly strong in fundraising, so the Ohio State search committee likely will seek a candidate with prowess in that area. Again, the 57-year-old Ms. Snyder would appear to check that box on the committee’s list.
A look at the presidents who have served Ohio State University in its history, along with their tenures: ■ E. Gordon Gee: Oct. 1, 2007 to July 1, 2013; Sept. 1, 1990 to Dec. 31, 1997. ■ Joseph A. Alutto (interim): July 1, 2007 to Sept. 30, 2007. ■ Karen Ann Holbrook: Oct. 1, 2002 to June 30, 2007. ■ Edward Harrington Jennings (interim): July 1, 2002 to Sept. 30, 2002. ■ William English Kirwan: July 1, 1998 to June 30, 2002. ■ John Richard Sisson (acting): Jan. 1, 1998 to June 30, 1998. ■ Edward Harrington Jennings: Sept. 1, 1981 to Aug. 31, 1990. ■ Harold Leroy Enarson: Sept. 1, 1972 to Aug. 31, 1981. ■ Novice Gail Fawcett: Aug. 1, 1956 to Aug. 31, 1972. ■ Howard Landis Bevis: Feb. 1, 1940 to July 31, 1956. ■ William McPherson (acting): July 1, 1938 to March 1, 1940. ■ George Washington Rightmire: 1926-38. ■ William Oxley Thompson: 1899 -1925. ■ James Hulme Canfield: 1895-99. ■ William Henry Scott: 1883-1895. ■ Walter Quincy Scott: 1881-83. ■ Edward Orton Sr.: 1873-81.
Follow the money Since Ms. Snyder took the reins in 2007, fundraising at Case Western Reserve has increased more than 85% due to her Forward Thinking Campaign, according to a message from Ms. Snyder on the Case Western Reserve website. In October 2011, the university launched a $1 billion fundraising campaign that as of last January had brought in $787.5 million.
Ms. Snyder also has turned around Case Western Reserve’s finances. The school faced an operating deficit of nearly $20 million when she took the job, but by fiscal 2012, which ended last June 30, the university posted a $6.4 million surplus. And though the schools vary greatly in enrollment, Case Western Reserve is in roughly the same ball-
park as Ohio State when it comes to the endowments at each university. A 2012 study of endowments by the National Association of College and University Business Officers and the Commonfund Institute ranks Ohio State at No. 29 nationwide, with $2.36 billion in endowment funds. The much smaller, private Case Western Reserve is the next Ohio institution to appear on the list, at No. 44, with an endowment of $1.6 billion.
Buckeye ties Ms. Snyder appears happy at Case Western Reserve and is highly respected for her accomplishments there. She has significant Ohio State connections, though, that could attract interest from university officials in Columbus. Ms. Snyder earned her bachelor’s degree in sociology from Ohio State and went on to work as a professor at the school’s Moritz College of Law. At the law school, Ms. Snyder served as associate dean for student affairs and director of the Center for Socio-Legal Studies in 2000 and 2001. She also was awarded the College of Law Outstanding Professor award in 1997 and held the Joanne W Murphy/Classes of 1965 and 1973 Professorship from 2000 until 2007. In 2001, she was named vice provost for academic policy and human resources at Ohio State. From 2004 until 2007, when she took on the role of president as Case Western, Ms. Snyder served as executive vice president and provost at Ohio State. In response to an inquiry about any potential interest in the Ohio State job, Ms. Snyder issued a statement that read: “These are exciting times at Case Western Reserve —
Turns out the distance between middle management and upper management is one degree.
Executive MBA Open House Thursday, June 20, 2013 6:00 p.m. – 8:00 p.m. Register at: weatherhead.case.edu/emba or call 216.368.6411
applications are skyrocketing, our capital campaign is thriving and our faculty continue to do groundbreaking work. And (recently) we announced a collaboration with the Cleveland Clinic to construct a state-of-the-art medical building. I am committed to seeing through all of these initiatives underway and identifying new opportunities for progress. I am proud to be president of Case Western Reserve and intend to continue in this role for many years to come.”
Quest has just begun Robert Schottenstein, president and CEO of M/I Homes Inc. and chairman of the Ohio State board of trustees, said he still is working with the board to develop the criteria for the next Ohio State president. Mr. Schottenstein said in a statement: “The board is just beginning the search process and details regarding the process will be released as they are developed. Ohio State is one of the nation’s finest public research universities with great traditions, a rich legacy and enormous opportunity. We are very excited as we begin our search for the next great leader of our university.” Mr. Carleton of Baldwin Wallace said his university’s search — which led to the hiring of Robert Helmer in February 2012 — focused on finding a candidate who could raise money, aggressively attract students, facilitate a harmonious relationship between faculty and administration and operate the university in a financially astute way. Although Ohio State is orders of magnitude larger than Baldwin Wallace, and is a public institution, too, Mr. Carleton expects the search to focus on similar issues.
“Ohio State is likely looking for someone to carry on the very exciting mission and vision that has been present to date,” he said, adding that with the installment of a new president, Ohio State has the opportunity to rethink its mission and vision strategies. What would a smaller, private university’s reaction be to one of the most prominent universities in the nation courting its sitting president? “That would be the finest compliment that could ever be paid to our institution,” Mr. Carleton said. “You would hope every time you recruit somebody it wouldn’t be their last job.”
‘A remarkable legacy’ Although Case Western Reserve and Ohio State share the classification of respected research institutes, the pay for their presidents differs substantially. According to the most recent records published by the Chronicle of Higher Education, Ms. Snyder in 2010 received total compensation of $730,056. Dr. Gee’s total compensation for 2012, as reported by the Chronicle, was $1.89 million. Chuck Fowler, chairman of the board at Case Western Reserve, said the university is thrilled with the job Ms. Snyder has done and looks forward to her continued contributions. “Barbara has emphasized that she wants to continue to lead Case Western Reserve for many years to come, and we have made clear as a board that we want her to do just that,” Mr. Fowler said. “As impressive as the past six years’ progress has been, we believe that Barbara will lead us to even greater gains in the future. She is building a remarkable legacy.” ■
20130610-NEWS--9-NAT-CCI-CL_--
6/6/2013
2:25 PM
Page 1
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
9
PolyOne is designing a colorful ‘global footprint’ Avon Lake-based company unveils its new product development services, which were sparked by two recent acquisitions By ROBERT GRACE Plastics News
GUANGZHOU, CHINA — PolyOne Corp. officials at the Chinaplas trade show launched a color and design services business, highlighted recent uses of some of its products — from biopolymers to PET packaging additives — and discussed its two recent acquisitions of ColorMatrix Corp. and Spartech Corp. At a May 20 media event, PolyOne unveiled its new InVisiO color and design services, which the polymer producer said aim to help brand managers and designers evaluate color and design alternatives to accelerate the product development process. Tailored to private labels and brand owners, the service also can “strengthen brand equity and build marketplace excitement,� said Fernando Sanchez, global marketing director for PolyOne Color and Additives. The name InVisiO is drawn from three components. Mr. Sanchez described the following aspects of those elements: ■Insights: color forecasts and trend predictions, market studies, and design possibilities with different materials, colors, textures and forms; ■Vision: the interaction of color, texture and special effects within a product’s design, color portfolio management, and color consulting and development expertise; and ■Intelligent operations: help with finding the best liquid or solid colorant for a given application, and design development via 3-D prototyping, tooling, testing, process optimization and operational support. PolyOne launched a related website, www.invisiocolor.com, and rolled out a downloadable iPad application. It said InVisiO services are designed to support markets from packaging and electronics to appliances, consumer goods, and building and construction. It noted that customers who use these new services also will have access to the 12 PolyOne Innovation Centers around the world. One of those — at the company’s headquarters in Avon Lake — invested last year in 3-D printing capabilities, and the company intends to install 3-D printers in more of its innovation centers going forward, according to Mark Crist, PolyOne’s Asia vice president. PolyOne’s design centers and InVisiO service fit nicely with the IQ PKG group it acquired via the Spartech purchase. An integrated, in-house design service, IQ PKG aims to create innovative package designs that enhance the price-value relationship of customer’s products, with a focus on aesthetics, functionality and sustainability.
Going Dutch In another design-focused effort, PolyOne highlighted its global collaboration with the Dutch firm Xindao and its Shanghai-based design studio XD Design. The three com-
panies worked together in China, Europe and the United States to boost the content of renewable resources within the new XD Design Sunshine Solar Charger — a flowershaped array of five solar cells that can charge cell phones and digital tablets. The team ended up developing all the molded casing components for the charger from a custom-developed reSound biopolymer, which Xindao estimates will reduce the carbon footprint for the product by as much as 35% compared with alternative materials. The company previously used ABS resin for the casings. Ryan McSorley, head designer at XD Design, said: “We want our end users to have fun interacting with these products. We also want the chargers to be long-lasting, and as sustainable as possible.� Based in Rijswijk, the Netherlands, Xindao has won seven of Germany’s Red Dot design awards, and maintains design and manufacturing resources in China. Also on May 20, PolyOne’s ColorMatrix subsidiary launched AmoSorb Plus, a high-performance oxygen-scavenging additive for PET packaging. The product is said to enhance container clarity with the aim of helping customers achieve aesthetic and recyclability goals. Because it is based on a previously approved technology, AmoSorb Plus does not require the regulatory approvals of a completely new material. The product is a crystallized PETbased concentrate with a built-in catalyst to promote oxidation. ColorMatrix says it offers product protection for non-carbonated foods and beverages such as teas and fresh fruit juices for up to six months or longer, depending on the container design.
global key accounts, said officials have had to wait before they could start addressing demands from customers outside of North Crist America for access to the unit’s thermoformed sheets. As for the perception that acquiring a sheet thermoformer would vault PolyOne into competition with some of its processor customers, Mr. Crist acknowledged that “conventional wisdom� would lead one to believe that such a deal would be fraught with conflicts of interest. But, he said, “We found very little overlap, and more synergies than conflict.� Mr. Crist hinted that PolyOne is not done being the aggressor. “We are not stopping our acquisition hunt after Spartech,� he said. “This is an attractive area.� ■Robert Grace is associate publisher and editorial director of Plastics News, a sister publication of Crain’s Cleveland Business.
CONTRIBUTED PHOTO
PolyOne Corp.’s design focus includes collaborating with Dutch firm Xindao and Xindao’s Shanghai design studio, XD Design, on this solar charger for cell phones and digital tablets.
Presented by:
Supported by:
Networking & Awards Luncheon Insights from past honorees: “Believe in yourself, trust your instincts and know that you hold the power of who you want to be in the future.� - Anne Bitong, President, Executive Director
More deals to come? Speaking to the $486 million acquisition of liquid colorants specialist ColorMatrix in late 2011, Mr. Crist said the operations were “easy to integrate� into PolyOne. He noted that the two companies had only about a 5% overlap in customers in the color business, between ColorMatrix’s liquid colorants and PolyOne’s color masterbatches. Mr. Crist also commented on PolyOne’s $393 million purchase last fall of compounder and sheet extruder Spartech. That business, which brought $1.2 billion in revenue to PolyOne’s top line, has been rebranded as Design Structures & Solutions. The former Spartech was primarily a North American business before. “With PolyOne’s global footprint,� Mr. Crist said, “we see an incredible opportunity to take their (solutions) and exploit them on a global scale.� That said, there is still much work to be done in North America, he said, before the Design Structures technologies can be aggressively expanded abroad. The Spartech deal officially closed only in mid-March, so Mr. Crist, who also is PolyOne’s VP of
Akron Marathon Charitable Corp.
“Obstacles are easily surmountable as long as you have that confidence to know that, ‘Yes, I can do it!’ and really they sky’s the limit.� - Susan Frankel, Vice President, Construction Stark Enterprises Inc. Cleveland
“I would tell a young professional woman to find something that she is committed and dedicated to‌ and something she really really enjoys.â€? - Lori Franklin, Chief Operating Officer, OverDrive, Inc.
“I find that any time I can get out there – experience new places, go to new places and just really test myself with a different culture. That’s the best gift I’ve gotten in life.� - Tracy Marek, Chief Marketing Officer and Senior Vice President Cleveland Cavaliers
5IVSTEBZ +VMZ t -B$FOUSF 8FTUMBLF t AM PM 5JDLFU *OGPSNBUJPO $SBJOT$MFWFMBOE DPN 80/ PS
20130610-NEWS--10-NAT-CCI-CL_--
10
6/6/2013
4:43 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Do it right
C
leveland and Cuyahoga County have been presented with a once-in-a-lifetime opportunity to change the face and feel of the city’s downtown. Their leaders need to display the souls of artists as they pursue their big-ticket plans for the heart of town. Mayor Frank Jackson and County Executive Ed FitzGerald deserve credit for working together to present a singular vision for as much as $360 million in downtown development. The plans they’ve agreed upon have been made possible by what Mr. FitzGerald described last week in a meeting with Crain’s as “the intersection of good luck and good planning.” The county’s construction of the new Cleveland convention center and the Global Center for Health Innovation (formerly known as the medical mart) is wrapping with a surplus of more than $90 million. That windfall has been created by a combination of construction costs that were kept in check and an improving economy; the latter produced more revenue than anticipated from the quarter-point sales tax increase former county commissioners Jimmy Dimora and Tim Hagan put in place six years ago to pay for the big complex. Rather than see that pot of money spent in dribs and drabs, Mr. FitzGerald wants to leverage those dollars to make a big impact downtown, and Mayor Jackson is a willing participant in that effort. The biggest investment would be in a $260 million, 650room convention center hotel that Mr. FitzGerald said is essential to attracting bigger meetings to Cleveland. But their plans don’t stop there. Mayor Jackson and Mr. FitzGerald also want to remake Public Square to create an attractive, unified urban park, and to spend nearly $50 million to build a long-sought pedestrian bridge connecting the Mall area and the lakefront. The bridge is viewed by civic leaders as the missing link to creating the connectivity to the rest of downtown that would encourage residential, retail and office development along the lake. The two government leaders seem prepared to burst out of the gate with their plans. However, their desire to move fast should not ignore architectural and aesthetic considerations critical to whatever development projects are undertaken. If the hotel and the pedestrian bridge turn out to be utilitarian structures that serve a purpose but are design duds that fail to elicit “ahhhhs” from visitors and residents alike, then the $90 million bonanza the city and county have fallen into will have been squandered. Mr. FitzGerald said of the development plan, “This is going to point the direction of the next decade.” Well, that’s not good enough. These investments should be made with eyes fixed on how they’ll contribute to the aesthetics and livability of Cleveland over the next century. They will be no less important going forward than the master plan that urban designer Daniel Burnham created for the city more than a century ago. Creativity and beauty should not be sacrificed on the altar of expediency. It is an admonition civic leaders should keep in mind as they pursue their plans.
FROM THE PUBLISHER
Shoreway shutdown is worth hassle the local filming of “Captain America: ring on the traffic snarls and a The Winter Soldier” actually is one of the good, old-fashioned rush hour! signs of a robust economy. Horrid rush Last week, as I watched endless hours are hallmarks of some of TV news reports about America’s most-envied cities, the traffic problems caused by BRIAN like New York, Los Angeles, the temporary shutdown of the TUCKER Chicago, San Francisco and West Shoreway, I could only Boston. In part, it’s the bad smile and shake my head. commutes into those cities that It’s not that I was immune to create demand for downtown it, by the way. I don’t walk to housing, which creates dework; I have a commute from mands for retail, which creates Medina that normally takes 45demand for schools, which cre50 minutes on a good day. ates demand for … well, you get That’s when traffic is running the idea. smoothly on I-71 as I make my So when a movie company brings tens way to Cleveland and our offices in the of millions of dollars’ worth of extra Warehouse District. But is it really a good commerce into our city, much like what thing that on most days, we all navigate happened with “The Avengers” and the highways and byways of Northeast “Spider-Man,” I couldn’t be happier with Ohio with very little congestion? the inconvenience. I leave earlier in the Sure, it’s a nice thing to tell newcommorning, and get caught up on projects ers. We proudly add it to the list of things in my office while the traffic eases into we like best: the orchestra, Playhousthe early evening. eSquare, our colleges and universities, It’s just for another week, and Clevemanageable housing costs, great muselanders are generally pretty resilient ums, world-leading health care, pro folks. The whining faded away from the sports, the Metroparks, etc. water cooler discussion pretty quickly But a rush hour like we’ve had during
B
last week, especially after the news broke of the big downtown transformation project. County Executive Ed FitzGerald and Cleveland Mayor Frank Jackson announced that savvy construction management of the convention center/global health center project has left enough of a surplus to leverage the redesign of Public Square, construction of a convention center hotel, a pedestrian walkway connecting downtown to North Coast Harbor and the building of a 700-car garage at the lakefront. Call it the Grand Plan, or Group Plan II. And yes, some of it depends on other things succeeding like federal help for the pedestrian connector. But with the city’s action last week to start the development process for the lakefront, the casino-to-the-lake project is too important to let any part fail. This adds further momentum to downtown’s resurgence, and likely will ignite other construction on its fringes. This will be truly exciting to watch, with or without traffic snarls. Hail, hail rush hour! ■
THE BIG ISSUE Cleveland and Cuyahoga County last week laid out a $360 million development dream for downtown that would link Public Square with the long-ignored lakefront. Leaders also pledged that all the plans can be done without any new taxes. How do you feel about that?
DAVID MITCHELL
ADAM ZUCCARO
DARLENE FIGLIOLI
JENNIFER ANDERSON
Richmond Heights
Mayfield Heights
Strongsville
Painesville
That (is) a wonderful idea. It’s a great resource that’s just going to waste. Every other city with a lakefront is utilizing it. Why are we not?
I’m all for anything that would improve the downtown environment. I just want to make sure it fits into whatever larger plan there is. I want to avoid too many different projects running in different directions.
Fantastic. That’s what we need. They’re the highlights of our city. We need to be able to have that sort of access and convenience for our guests … and people who work in the downtown market.
I think that’s fabulous. If it’s not coming out of the taxpayer’s pocket and you’re making improvements; you can’t go wrong with it.
20130610-NEWS--11-NAT-CCI-CL_--
6/6/2013
3:24 PM
Page 1
JUNE 10 - 16, 2013
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
11
Equity: ‘Smart money’ is on ‘avoiding leverage’ continued from PAGE 3
The deal was the $3.4 million purchase in February of the half-empty building at 14600 Detroit Ave. in Lakewood from a lender-led group for 25% of its prior selling price. “We looked at it and decided that after we get the building repositioned, we may go to lenders,” Mr. Kowit said. “There has been a lot of money on the sidelines for several years. The other returns (from banks and certificates of deposit) are relatively nothing. That is really the story with the partners in this deal.” The sale of the tallest office building in the Cleveland suburbs highlights a trend in post-recession commercial real estate. Formerly representing only the occasional purchase, all-cash deals now are common. Multiple office, retail and industrial properties in Northeast Ohio have traded for cash recently. And some developers are raising cash aggressively to limit the amount of debt they need to take on for new projects. The equity-fueled buyers fall into two groups at the extremes of the property market, said Alec Pacella, managing partner of the NAI Daus brokerage, who focuses on investment property. At one end are the cash buyers of distressed and lender-owned properties that developers and property owners are buying at big discounts with plans to reposition them. At the other end are cash-flowing properties that investor groups are buying; they include a profusion of single-tenant, retail and bank branch properties. Missing from the market are conventional real estate buyers — Mr. Pacella calls them “market-rate” buyers —who made purchases with bank loans to leverage their own funds across as many properties as possible. Most of the properties that have traded recently have been riskier redevelopment challenges, which offer investors upsides, and with good returns.
Seize the moment Consider the purchase of the 1 million-square foot Parmatown Mall, shopping center and medical office building in Parma by Phillips Edison Co., a Cincinnati-based operator and developer of retail properties. David Birdsall, managing director of Phillips Edison’s Strategic Investment Fund, said his group bought the property out of receivership by purchasing the mortgage outstanding on the property for an amount of cash he would not disclose. When the purchase of the property itself was consummated last Oct. 29, the company used a Bank of America mortgage for $12.5 million for part of the acquisition and secured it with the empty Macy’s store it bought at the same time for $2 million. Cuyahoga County records show a $12.5 million loan on the properties, since renamed “The Shoppes of Parma.” When Phillips Edison completes its plan to remake the 88-acre property, it will use loans. KeyBank last winter approved a line of credit for as much as $250 million for the mall makeover.
“We consider the cost of borrowing too much money to be fool’s gold. We like to keep leverage low to learn from other people’s mistakes.” – Michael Moses, chief investment officer, NRP Group Mr. Birdsall’s Strategic Investment Fund raises money from high net worth individuals for its investments; some of the Parmatown funds came from a $57 million fund it raised in 2011. “There is plenty of cash on the equity side, so the smart money is avoiding leverage at this time,” Mr. Birdsall said. Such investors are willing to undertake complex deals and remain patient while a longterm repositioning strategy is put into play. Even so, he added, “The preference is to use leverage when we can because equity is expensive. The nice thing about the fund is that when you see an opportunity, you can seize it.”
STAN BULLARD
The 15-story Lakewood Center North building was purchased for $3.4 million in February by a group led by real estate broker and property investor Brad Kowit.
Keeping leverage low When real estate insiders discuss property owners buying with leverage, the first name mentioned is that of Mark Munsell, principal of Munsell Realty Advisors who bought multiple office properties during the boom years. He said he now focuses on running his properties, but he also sees the equity forces in play. Mr. Munsell said private companies have bought three of his Akronarea buildings with fewer than 50,000 square feet the past two years. The buildings had vacancies, and companies in need of space had the resources and desire to buy, he said. Even in the apartment segment, where lenders are active, substantial equity-raising is underway. Among the firms building up equity storehouses is NRP Group in Garfield Heights, which is undertaking luxury apartments and college student housing in Beachwood and Akron, respectively, as well as projects in Dallas, San Antonio and the Florida cities of Fort Lauderdale and Jupiter. Michael Moses, NRP’s chief investment officer, said the company has raised funds from pension fund advisors, real estate investment trusts, family investment offices, private equity firms, foreign corporate investors and sovereign wealth funds. He estimates NRP has raised about $175 million in equity to help fund a $600 million real estate development pipeline. Each deal differs, he said, but NRP invests its own equity and that of investors for about 35% of a project’s cost and secures bank loans for about 65% of the remaining cost on multimillion-dollar ventures. In the mid-2000s, before NRP entered the luxury and student housing markets, loans for as much as 80% of a project’s construction cost were common. “We consider the cost of borrowing too much money to be fool’s gold,” Mr. Moses said. “We like to keep leverage low to learn from other people’s mistakes.” ■
oy s ter per pe tua l milg aus s
rolex
oyster perpetual and milgauss are trademarks.
20130610-NEWS--12-NAT-CCI-CL_--
12
6/6/2013
2:25 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED Palladium Healthcare LLC 5333 Northfield Road, Suite 300, Bedford ID: 27-1403155
Date filed: April 16, 2013 Type: Employer’s withholding Amount: $9,588 Keifers Konstruction LLC 13712 Crossburn Ave., Cleveland ID: 45-2378248 Date filed: April 25, 2013 Type: Employer’s withholding Amount: $9,549 Renaissance Center for Comprehensive and Cosmetic Dentist 2211 Crocker Road, Suite 110, Westlake ID: 01-0688742 Date filed: April 23, 2013 Type: Employer’s withholding Amount: $9,487
oor arking d n I % Airport P ff g *
15
O
in s o l C e is k?
Y e r A e Wher
T
480
CLE
Airport
Do wn tow n
g a ar r P a G o t t r ing po r o i G A e h ou 237
71 Ford
Exit Snow Rd.
Snow Rd. ÂŽ
ÂŽ
North
TheFastPark.comĂŠUĂŠĂ“ÂŁĂˆÂ‡Ă“Ăˆx‡äxääÊUĂŠÂŁnn™™Ê-Â˜ÂœĂœĂŠ,`° Valid at CLE locations only. Not valid with any other offer. Valid through 9-24-13. *One coupon per stay. Coupon required. CCB
Skok Industries Inc. 26901 Richmond Road, Bedford Heights ID: 34-1149494 Date filed: April 25, 2013 Type: Corporate income Amount: $9,224 Bruce J. Feldman MD Inc. 6200 SOM Center Road A-24, Solon ID: 34-1398558 Date filed: April 2, 2013 Type: Employer’s withholding, annual return of withheld federal income tax Amount: $8,410 Z & E Inc. Wadsworth Sunoco 12807 Larchmere Blvd., Suite 3, Shaker Heights ID: 34-1968868 Date filed: April 23, 2013 Type: Employer’s withholding Amount: $6,571 Parkside Grille Inc. 8 Plaza Drive, Chagrin Falls ID: 34-1855909 Date filed: April 23, 2013 Type: Employer’s withholding Amount: $5,910 KMK Sales Inc. 300 Industrial Parkway, Suite E, Chagrin Falls ID: 27-4587028 Date filed: April 23, 2013 Type: Employer’s withholding, unemployment Amount: $5,420 Johnnys Burgess Grand Corp. 1406 West 6 St., Cleveland ID: 34-1737006 Date filed: April 25, 2013 Type: Employer’s withholding Amount: $5,346 McMath & Sheets Unlimited Inc. Offset Theory 4427 Mayfield Road, South Euclid ID: 34-1550542 Date filed: April 5, 2013
Bring morale up. About thirty stories.
Type: Employer’s withholding Amount: $5,189 Sooso Inc. Daves Drive Thru 11625 Superior Ave., Cleveland ID: 26-0635626 Date filed: April 2, 2013 Type: Employer’s withholding, unemployment, corporate income Amount: $5,001
LIENS RELEASED Blossom 24 Hour We Care Center Inc. 11811 Shaker Blvd., Suite 120, Cleveland ID: 34-1948238 Date filed: June 21, 2012 Date released: April 16 2013 Type: Employer’s withholding, failure to file complete return, return of organization exempt from income tax Amount: $76,410 Comfort Wear Inc. 2261 Warrensville Center Road, University Heights ID: 31-1502585 Date filed: June 21, 2011 Date released: April 23, 2013 Type: NA Amount: $19,338
Lakewood Foursquare Church 2150 Warren Road, Lakewood ID: 94-2961674 Date filed: Aug. 3, 2010 Date released: April 23, 2013 Type: Employer’s withholding Amount: $48,928 Nott-One Inc. Nottingham Auto Body 19425 Saint Clair Ave., Cleveland ID: 34-1577544 Date filed: Oct. 9, 2012 Date released: April 16, 2013 Type: Employer’s withholding, unemployment Amount: $11,767 Royal American Group Co. 30195 Chagrin Blvd., Suite 210, Pepper Pike ID: 34-1847147 Date filed: Aug. 24, 2010 Date released: April 23, 2013 Type: Employer’s withholding Amount: $24,208 Shree Jagdamba Inc. 7516 Saint Clair Ave., Cleveland ID: 20-8002260 Date filed: June 8, 2010 Date released: April 16, 2013 Type: Employer’s withholding Amount: $5,518
Great Lakes Etching & Finishing Co. 7010 Krick Road, Bedford ID: 34-1136809 Date filed: Oct. 3, 2012 Date released: April 22, 2013 Type: Employer’s withholding Amount: $21,114
Will Repair Inc. 2901 E. 65th St., Cleveland ID: 34-1577547 Date filed: July 28, 2011 Date released: April 23, 2013 Type: Employer’s withholding Amount: $25,073
Huggable Child Care Inc. 10749 Superior Ave., Cleveland ID: 34-1859391 Date filed: Aug. 24, 2009 Date released: April 16, 2013 Type: Employer’s withholding, failure to file complete return Amount: $27,004
William E. Crowe MD Inc. 6681 Ridge Road, Suite 204, Parma ID: 300019966 Date filed: June 2, 2010 Date released: April 2, 2013 Type: Employer’s withholding, unemployment Amount: $16,889
Jag Healthcare 2226 Wooster Road, Rocky River ID: 27-2795645 Date filed: Aug. 22, 2012 Date released: April 16, 2013 Type: Employer’s withholding Amount: $547,971
Wirtanen Insurance Agency Inc. 23615 Lorain Road, North Olmsted ID: 34-1846529 Date filed: Aug. 25, 2011 Date released: April 23, 2013 Type: Employer’s withholding Amount: $5,379
STAY CONNECTED
New in 2013
■Crain’s on Twitter: @CrainsCleveland; Crain’s on Facebook: Facebook.com/CrainsCleveland; Crain’s daily e-newsletters: CrainsCleveland.com/register
Accelerating success. Thrills bring every group together. Experience the thrill of the record-breaking, high-ying, new GateKeeper. The excitement of the water rides. Not to mention the funnel cakes. A corporate outing to Cedar Point is unlike any other, with something for everyone to enjoy. Learn more at cedarpoint.com/group-sales/corporate-programs or call 1-800-448-2428 today.
0# ) 5 7 5'2& -**'#01 ', *#4#* ," # ),-5 7-30 !-+.#2'2'-, '1 É‘#0!#G ," 7-3 ! ,U2 ÉŽ-0" 2- 1'2 !) ', 2&# . !)G # +',% 5'2& -**'#01 ,2#0, 2'-, * ', *#4#* ," **-51 7-3 2- $-!31 7-30 #,#0%7 -, 7-30 #6.#02'1#G # $-!31 -, -301O + 6'+'8',% 7-30 0# * #12 2# .-1'2'-,O2- !!#*#0 2# 7-30 13!!#11G
Opens May 11
0' , G 3023) L , %',% '0#!2-0I *#4#* ," p 0',!'. * 0' ,G&3023)_!-**'#01G!-+ p „ 9 :9> :;A =B>B .&-,# 555G!-**'#01G!-+n-&'-
20130610-NEWS--13-NAT-CCI-CL_--
6/6/2013
2:30 PM
Page 1
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
13
BRIGHT SPOTS Bright Spots is a period feature in Crain’s highlighting positive business developments in the region. To submit information, email Scott Suttell at ssuttell@crain.com. ■ FlashStarts Inc., a new accelerator for software startups, announced a partnership with Oberlin College that provides a team of graduating Oberlin entrepreneurs or apprentices a slot in the FlashStarts summer 2013 program. FlashStarts is launching 10 software startups with its Summer Accelerator program. Each team receives up to $20,000, mentoring, office space and an array of services and support in exchange for equity. Charles Stack, FlashStarts founder and CEO, said in a statement that startup accelerators “can be the capstone of university entrepreneurship programs, but they require critical mass that only the largest universities can achieve.” “FlashStarts is partnering with top NE Ohio universities to provide a world-class startup accelerator for their recent graduates,” Mr. Stack stated. “We are thrilled that Oberlin’s superb, ground-breaking entrepreneurship program will be our first partner.” FlashStarts partners Mr. Stack and Jennifer Neundorfer will work with Oberlin’s existing entrepreneurship program throughout the year to provide additional guidance and mentoring to students, according to a news release from the accelerator. At the end of the program, one team will be selected for the Oberlin Entrepreneurship Fellowship at the FlashStarts Accelerator. ■ Dr. Prabhakar Tripuraneni, chief medical officer at ViewRay Inc. in Cleveland and head of radiation oncology at Scripps Green Hospital in La Jolla, Calif., was selected to receive a Gold Medal from the American Society for Radiation Oncology. The Gold Medal is the organization’s highest honor, “bestowed on highly regarded members who have made outstanding contributions to the field of radiation oncology,” ViewRay stated in announcing the award, which will be presented at the group’s annual meeting in September.
Chris A. Raanes, ViewRay president and CEO, said Dr. Tripuraneni’s commitment to the field of radiation oncology “is truly commendable, and ViewRay is fortunate to have the benefit of his medical expertise and guidance.” ViewRay has developed a machine that can obtain real-time images of a cancerous tumor while doctors shoot the tumor with radiation. As Crain’s reported last month, ViewRay has raised nearly $100 million in venture capital since early 2008, when the company announced it would move to Ohio from Florida. ■ Healthcare Informatics magazine named Hyland Software in Westlake to the Healthcare Informatics 100 as a leading health care information technology provider. Hyland is the creator of the OnBase enterprise content management platform, and ranks on the Healthcare Informatics list as the 62nd-largest company overall based on revenue. “Hyland’s listing on the HCI 100 represents our strategic, continuous growth and financial stability,” said Susan deCathelineau, vice president of health care sales and solutions at Hyland Software. She said OnBase is used in 65 countries by more than 1,600 health care organizations. ■ Digital content distributor OverDrive Inc. demonstrated its OverDrive Media Station at the big BookExpo America trade show, which took place May 30-June 1 in New York City. The media station is designed to merchandise and sell e-books in retail stores. OverDrive describes it as a “digital touchscreen e-book station that can be customized with a retailer’s brand for in-store engagement with readers.” It displays top-selling titles and provides access to more than 1 million e-book and MP3 audiobook titles in every genre, OverDrive said. “Publishers and authors are very excited to support retail booksellers to supplement their print book sales by enabling them to sell eBooks to customers in their stores,” said Erica Lazzaro, director of publisher relations at OverDrive, in a statement. “It’s one more way
Women :
to broaden digital content discovery and bring publishers and retailers closer together.” ■ Kent State University’s Cleveland Urban Design Collaborative said it will have its “Pop Up City” initiative featured in the “Spontaneous Interventions: Design Actions for the Common Good” exhibition at the Chicago Cultural Center through Sept. 1. “Pop Up City,” a temporary-use project, “activates some of Cleveland’s most spectacular but underutilized vacant places as havens for cultural and arts activities,” according to a university news release. It’s one of 84 national projects that are on display in Chicago. The “Spontaneous Interventions: Design Actions for the Common Good” exhibition, which helps to bring improvements to the urban realm and creates new opportunities and amenities for the public, was the official U.S. presentation at the 13th International Architecture Exhibition at the Venice Biennale in Italy last year. Kent State’s “Pop Up City” initiative also was a part of that presentation, which received more than 178,000 visitors in Venice, and earned a special mention from the Golden Lion jury. It was the first time the United States has been
honored in the history of the Venice Architecture Biennale, according to the university. “The Venice Biennale is the largest and most recognized architecture exhibition in the world,” said Terry Schwarz, director of Kent State’s Cleveland Urban Design Collaborative, in a statement. “To have the CUDC’s work included in this show is a major accomplishment. … The Chicago exhibition is a pared down version of the Venice show, and we are very pleased that ‘Pop Up City’ was selected for inclusion.” ■ CSR (Colortone Staging & Rentals) of Cleveland said it was awarded the preferred in-house audiovisual and exclusive rigging provider contract with Cleveland’s new Global Center for Health Innovation and the Cleveland Convention Center. Terms weren’t disclosed. CSR said it was awarded the contract on the basis of its “reputation for excellence and its continual investment in new technology, stateof-the-art equipment and knowledgeable, experienced staff.” Brian Casey, vice president and general manager for the facility, said in a news release, “CSR’s longstanding partnerships and experience in the production of major conferences with health care industry organiza-
tions such as Cleveland Clinic and University Hospitals provide our clients with the assurance that CSR can deliver first-class audiovisual services in the convention center.” ■ The 2013 National Senior Games presented by Humana, which will take place in the Cleveland area starting July 19, will host 10,834 athletes age 50 and over, according to the Greater Cleveland Sports Commission. The athletes will compete in 19 sports over two weeks. As a result of the large number of athletes and their families and friends who will be in town, the sports commission has renewed its call for volunteers. There are more than 7,000 volunteer shifts to fill, “with roles and responsibilities ranging from greeters to scorekeepers to managing event entertainment to retrieving javelins during the track and field competition,” according to the commission. The commission says athletes come from all 50 states and range in age from 50 to 101; the average age is 66. About 41% of participants will be ages 70 and up. The commission said the event is expected to draw more than 28,000 people to the Cleveland area between July 19 and Aug. 1. The estimated economic impact is $35 million.
WEEK OF JUNE 17
GET MORE More articles, more blogs, more videos, more photo galleries, more of everything Crain’s award-winning staff publishes. Northeast Ohio’s leading source of online business news. All free to you. Week of June 17 only.
Executive Skills for Elevate your social media savvy Wednesday, June 12, 2013 4:00 p.m. to 6:00 p.m. EDT Location: McDonald Hopkins, Fifth Third Center 600 Superior Avenue, East, Suite 2100 Downtown Cleveland
RSVP: mcdonaldhopkins.com or call: 216.348.5400 to register. There is no charge for this program.
McDonald Hopkins LLC 600 Superior Ave., East, Suite 2100, Cleveland, OH 44114 • 216.348.5400
Carl J. Grassi
Shawn M. Riley
President
Cleveland Managing Member
Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach mcdonaldhopkins.com
Go to CrainsCleveland.com for full and free access
20130610-NEWS--14-NAT-CCI-CL_--
14
6/6/2013
2:26 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
GOING PLACES JOB CHANGES C0NSTRUCTION RUHLIN CO.: Ben Myers and Kyle Donley to project engineers; Brent Rozar to business development manager; Julie Bell to financial assistant.
Myers
Donley
Rozar
Bell
Tankersley
Crawford
Rafferty
Hastings
Rosko
Barnes
Noble
Anglewicz
Dodosh
Hoover
Elzeer
Davis
CONSULTING RICHTER HEALTHCARE CONSULTANTS: Carolyn Lookabill to vice president, COO.
EDUCATION KENT STATE UNIVERSITY: Melody Tankersley to associate provost for academic affairs; Fashaad Crawford to assistant provost for accreditation, assessment and learning.
CREDIT UNION INC.: Jill M. Ellison to manager/CEO and treasurer.
A. Kostoglou, D.C., chiropractic medicine; to medical staff.
MAGNIFICAT HIGH SCHOOL: Renata J. Rafferty to president.
MCGLADREY LLP: Hubert Hopkins to IT audit supervisor.
& LIFFMAN LPA: Nicholas M. Dodosh to associate; Kristen M. Hoover to patent attorney.
LEGAL
ENERGY
PWC US: Gregory Rosko to partner, Lake Erie market.
QUASAR ENERGY GROUP: Anthony Cieslak to director of finance.
SS&G HEALTHCARE: Constance Robinson to billing specialist.
BROUSE MCDOWELL: Heather M. Barnes to chair, intellectual property practice group.
SEELEY, SAVIDGE, EBERT & GOURASH CO. LPA: Kimrey D. Elzeer to associate.
HEALTH CARE
FINANCIAL SERVICE BCG & CO.: Tom Hastings to chief operations officer. LAKESHORE COMMUNITY
ST. VINCENT MEDICAL GROUP: Antony M. George, M.D., physical medicine; Chandra Hassan, M.D., bariatric and general surgery; John
CALFEE, HALTER & GRISWOLD LLP: Jennifer S. Noble to associate. DAY KETTERER: Gregory A. Anglewicz to real estate practice group. MCCARTHY, LEBIT, CRYSTAL
MANUFACTURING ERICSON MANUFACTURING: Mike Lucie to national business development manager.
MARKETING BMA MEDIA GROUP: Tom Davis to sales representative, developmental programming and media sales; Tom Germuska Jr. to communications/project manager. FAHLGREN MORTINE: Grace Berry to account associate.
NONPROFIT MONTEFIORE FOUNDATION: Debbie Rothschild to director.
REAL ESTATE CBRE INC.: Joseph W. Khouri to first vice president; David Mrachko to associate. TRANSACTION REALTY: Meredith Thomas to sales associate.
SERVICE
TECHNOLOGY ONELINK TECHNICAL SERVICES: Michelle Bender to business analyst; Kristin Duke to business development manager; Lee Herrington to systems engineer; Shannon Soltesz to solutions engineer.
BOARDS CLEVELAND INTELLECTUAL PROPERTY LAW ASSOCIATION: Patricia Motta (American Greetings) to president; Chris Hunter to president-elect; Deborah Wilcox to past president; Josh Ryland to vice president; Bryan Jaketic to secretary; Angela Gott to treasurer; Tara Kastelic to director. ELIZA BRYANT VILLAGE: Jean Allen-Jenkins to chair; Ruth Fore to first vice chair; William Beargie to second vice chair; William D. Ginn to secretary; Barbara Bray to recording secretary; Rufus Heard to treasurer; J. Stefan Holmes to assistant treasurer; Brenda York to immediate past board chair.
AWARDS CK FRANCHISING INC.: Bonnie Warren and Jack Warren (Comfort Keepers of Concord) received the Operational Excellence Award.
SPORTS
NATIONAL ETHNIC COALITION OF ORGANIZATIONS: Kenneth J. Kovach (International Services Center) received a 2013 Ellis Island Medal of Honor.
CLEVELAND BROWNS: Kevin Griffin to vice president, fan experience and marketing.
Send information for Going Places to dhillyer@crain.com.
LAZORPOINT: Raj Ayyalasomayajula to project engineer, software development.
Our business is the key to protecting your business. Whether you’re in the locksmith business or any other business, Cox Business InternetSM can keep your data safe. Not only is our Cox Business Internet Professional 10x faster than basic DSL, but it comes with FREE Security Suite and FREE Online Backup. Bundle that with Cox Business VoiceManagerSM to get up to 20 of the professional features your business needs most so it can thrive the way you imagined on the first day you opened. Plus, our award-winning local support is available 24/7. Call today and see how your business is our business.
It’s your choice.
Internet Professional & Phone
89
99
$
❒ Sell ❒ Starve
+ NEXT DAY, EVENING AND SATURDAY INSTALLATION APPOINTMENTS AVAILABLE + INTERNET SPEEDS UP TO 15 MBPS/3 MBPS & UNLIMITED LONG DISTANCE CALLING + PRICE GUARANTEED FOR 2 YEARS
coxbusiness.com | 866.791.2688
A MONTH*
CALL TODAY, 440 575-7000 *Offer ends 7/1/13. Available to new commercial subscribers of Cox Business InternetSM Professional (max. 15/3 Mbps) and Cox Business VoiceManagerSM Anywhere. Prices based on 2-year service term. Equipment may be required. Prices exclude equipment, installation, taxes, and fees, unless indicated. Speed not guaranteed. Actual speeds may vary. Phone modem provided by Cox, requires electricity, and has battery backup. Access to E911 may not be available during extended power outage. Speed claim based on Cox Business Internet Professional 15 Mbps service vs. basic 1.5 Mbps DSL. Other restrictions apply. ©2013 Cox Communications, Inc. All rights reserved.
W W W . S A L E S C O N C E P TS I N C.C O M
SELL MORE.
20130610-NEWS--15-NAT-CCI-CL_--
6/6/2013
4:06 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
JUNE 10 - 16, 2013
INSIDE
18 SUMMER CLASSES ARE A TOUGH DRAW FOR SCHOOLS.
15
HIGHER EDUCATION
IMAGESBAZAAR
DEGREES ARE THE FOCUS Kasich’s proposed state funding formula has colleges shifting more emphasis from enrollment to helping students graduate
By TIMOTHY MAGAW tmagaw@crain.com
N
ortheast Ohio’s public universities enjoy flaunting how many freshmen invade their campuses each fall, but in the coming years, don’t
be surprised when they put a greater focus on touting how many of those students left with degrees in hand. That’s not to say Northeast Ohio’s higher education institutions haven’t been in the business of graduating students. See DEGREES Page 16
Schools aim to minimize plagiarism from the start Area institutions have programs to address the issue, inform students of consequences By SHARON SCHNALL clbfreelancer@crain.com
P
lagiarism is recognized as a serious matter that’s addressed by faculty and administration at Northeast Ohio’s colleges and universities. Not necessarily with harsh discipline as a first response, though, but with education, teachable moments, private counsel and tutoring. “Let them (students) learn from the experience — that’s key. If the conversation is just about punishment then it’s the wrong conver-
“Let them learn from the experience — that’s key.” – Vic Higgins research associate, Cleveland State University, on plagiarism sation,” said Vic Higgins, a research associate in the office of academic programs at Cleveland State University. Dr. Higgins’ 2010 dissertation is titled “Faculty and Students’ Perceptions of Cheating Behavior: A Journey into Moral Development.” Previously, he was an adjunct and visiting faculty member in the Col-
lege of Education and Human Services at Cleveland State. And, while plagiarism will never completely go away, he said, reduction and prevention are possible. Area institutions have programs and resources in place to raise awareness and stop some forms of plagiarism: ■ First-year writing classes primarily serve incoming freshman and devote curriculum to plagiarism. ■ Ongoing support is provided at writing centers. ■ At the start of each class, across the disciplines, syllabi ver-
biage highlights the institution’s plagiarism policy as well as the professor’s. ■ Web-based software is used by faculty, writing centers and students to identify and teach about plagiarism in draft-level work and later after the final work is submitted. When a student plagiarizes, he or she has not given “credit back to where the thoughts and ideas came from,” said Jana Holwick, vice president for academic affairs and chief academic officer of Lake Erie College of Painesville. However, “plagiarism is rarely a cut-and-dry and black-and-white
INSIDE: Kent State develops Plagiarism School. Page 20 event,” said Tom Pace, director of first-year writing and the professional writing major program and an assistant professor of English at John Carroll University.
Case management After confirming a student’s plagiarism, a professor can question, was this an unintentional case? Is the student familiar with how to cite? Was the project written in haste with citations appearing in some passages but not elsewhere? Is the student a first-time offender? See PLAGIARISM Page 20
20130610-NEWS--16-NAT-CCI-CL_--
6/6/2013
2:27 PM
Page 1
HIGHER EDUCATION
16 CRAIN’S CLEVELAND BUSINESS
JUNE 10 - 16, 2013
Degrees: Having students return for sophomore year is big hurdle continued from PAGE 15
However, a new funding method that could tie half of universities’ state dollars to graduation rates has local institutions making an even more concerted effort to ensure that those who enroll eventually earn a degree. The formula has been proposed by Gov. John Kasich as part of the ongoing budget negotiations, and it appears to be one of the few aspects of his spending plan that has faced little opposition in the state Legislature. The plan was developed at the urging of the governor by a panel of university presidents, which was chaired by the state’s most visible higher education leader, Ohio State’s Gordon Gee. At current, the bulk of state aid is based on enrollment with about 20% tied to graduation. Simply put, the more students a school has, the more state money it gets, and there’s little incentive to reward completion. And while state support for higher education has eroded steadily over the last few decades, that pool of taxpayer dollars still makes up as much as onethird of their budgets.
WHAT THEY’RE SAYING ABOUT COLLEGE DEGREES “There are going to be more “When a student stubs jobs that require these his or her toe post-secondary credentials, academically, their first so we’re focused now on response shouldn’t be getting Ohioans to complete to leave the university.” their degrees.” – Todd Diacon – Jeff Robinson acting director of communications, Ohio Board of Regents Plus, given that students and their families — rather than the state — are largely footing the bill for an education, there’s been a marked push for universities to prove they’re the best bang for those tuition dollars and that they’re getting the job done. As such, the University of Akron, Cleveland State University and Kent State University have employed a number of initiatives to make sure their students’ forays into higher education don’t prematurely fizzle. Some of those strategies include heavy-handed academic advising programs, creative efforts aimed at
We specialize in academic conferences.
www.academicventures.com
440-356-8743
senior vice president for academic affairs and provost, Kent State University encouraging students to live on campus and robust financial aid programs designed to ensure students don’t drop out because they can’t pay the bills. “First and foremost, the driving force is to help students be more successful,” Cleveland State spokesman Joe Mosbrook said. “It’s the right thing to do, but certainly the governor’s new funding formula has something to do with it.”
Please stick around The biggest hurdle for local universities isn’t so much getting students on campus, as their enrollments have remained fairly strong, but rather keeping them around for their sophomore years — a key indicator of whether they’ll graduate. That’s why local universities have put such a strong emphasis on socalled “engagement” strategies during students’ first years on campus. Kent State, for instance, is in its second year of “paired courses,” a program for which it schedules the same freshmen in two or three of the same courses. The idea is that those students will form strong friendships at the front end of their college careers, thus making it more likely they’ll seek out help
and stay at the university. Kent State also has imparted on incoming students the value of residing in “living and learning communities,” where students share a residence hall with those from a similar discipline, such as business or public health. “When a student stubs his or her toe academically, their first response shouldn’t be to leave the university,” said Todd Diacon, senior vice president for academic affairs and provost at Kent State University. “Their first response should be they love it here, they’re part of a community and can get help. That’s what we aim for.” Local universities also have ramped up their advising programs through restructuring or by adding staff to ensure their students remain on the right path toward graduation. Cleveland State, for one, instituted an intrusive advising program in which academic counselors reach out to troubled students by phone or e-mail. “Too often students in the past have been left to self advise, and we’ve discovered that’s not a best practice,” Mr. Mosbrook said. The University of Akron, meanwhile, has made improving its retention and graduation rates a pillar of its eight-year strategic plan, unveiled early last year. The university rolled out a number of programs that officials are hopeful will prevent students from falling through the cracks and, in some cases, speed up the time frame toward graduation. Trustees recently approved a program at the University of Akron called “ZipStart” that would allow early enrollment for incoming freshmen. Through the program, students can take certain general education courses over the summer at a reduced rate in order to get a step ahead in their academic career. The University of Akron also launched a program that allows students to take certain two-week refresher courses and then earn credits for the course through a $100 exam. The program is geared toward those who have gained knowledge through work or other academic endeavors. In yet another initiative, the university offers students pursuing careers in STEM (science, technology, engineering and mathemat-
HIGHER EDUCATION
ics) fields to get a leg up on their peers. Those students arrive on campus in the summer, live in the residence halls, attend classes, share tutors and study together. By summer’s end, the students will have earned a handful of credits in math and some electives. “We’re giving individuals an opportunity to prove themselves early,” said Mike Sherman, the university’s provost and chief operating officer.
A statewide push The budget proposal floating its way through the Ohio Legislature includes language dictating that the universities compile so-called “completion plans” — basically, action plans outlining how to guide students toward degrees — and have them approved by their boards of trustees by June 2014. The plans will be required to be updated biennially. The overall push for more Ohioans to complete their degrees stems from Gov. Kasich’s work force development efforts, according to Jeff Robinson, the acting director of communications for the Ohio Board of Regents. At the moment, Ohio ranks 38th among the states with about 26% of adults holding a bachelor’s degree — that’s five percentage points below the national average. “There are going to be more jobs that require these post-secondary credentials, so we’re focused now on getting Ohioans to complete their degrees,” Mr. Robinson said. Last November, the Regents, the body that oversees the state’s higher education system, released a list of recommendations that colleges and universities could use to boost their graduation rates. Some of those suggestions include expanding opportunities for students to earn college credits while still in high school, implementing intrusive advising programs and developing better scheduling and registration processes. “The long-term goal is to get more students through school in less time for less money,” Mr. Robinson said. “These are steps to them do that.” ■
Pam Lebold, Director
H
ands down, our higher education professionals are among the best in the business. But that doesn’t quite cut it. The way we see it, it’s not enough that we’re top-notch experts in accounting – we need to be experts at what you do too. That’s why we make it our business to know your business, inside and out. Maloney + Novotny has extensive experience working with colleges and universities providing audit, accounting, tax and consulting services.
Largest national staffing firm headquartered in North East Ohio. Call today to see how we can help you improve your overall staffing experience. Mentor 440-974-3391 Cuyahoga Falls 330-926-9680 Independence 216-328-8168
Middleburg Hts. 440-243-8790 Elyria 440-324-2880 Norwalk 419-663-1166
■ Cleveland 216.363.0100 ■ Canton 330.966.9400 ■ Elyria 440.323.3200 + Business Advisors and Certified Public Accountants
maloneynovotny.com
www.nescoresource.com
www.talentalley.com
20130610-NEWS--17-NAT-CCI-CL_--
6/6/2013
2:24 PM
Page 1
247 MIAMI GRADS BUT WHO’S COUNTING? {Well, probably the 5,162 Miami accounting alums who call Ohio home.}
For 200 years, Miami University has been helping shape the students who push Ohio forward. From the leaders of international companies to the folks who drive our economy, Miami alums bring leadership and entrepreneurial spirit to our state. As Ohio’s original Public Ivy, we teach students to pair innovative thinking with an old-fashioned “can-do” attitude. And over the next 200 years, when ideas are shared—in board rooms or stock rooms or living rooms—and someone asks where that ingenuity comes from, we’ll say, “It’s homegrown.”
OHIO ’S P U BLIC IVY WWW.MIAMIO H.E DU/ PUBL I C I VY
20130610-NEWS--18-NAT-CCI-CL_--
6/6/2013
2:46 PM
Page 1
HIGHER EDUCATION
18 CRAIN’S CLEVELAND BUSINESS
JUNE 10 - 16, 2013
Summer classes can be a difficult draw Schools say there are benefits to taking courses now, such as lower costs, smaller classes and a quicker path to graduation By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
S
ummer enrollment all comes back to finances, said Jim Tressel, vice president for strategic engagement at the University of Akron. Summer courses can be less expensive than those offered during the traditional school year, and taking classes in the summer can help students earn degrees faster, keeping student loan costs lower, Mr. Tressel said. But having to pay tuition year-round and forgo a summer job just isn’t a reality for some students. They need the summer to replenish bank accounts. “It’s a little bit more challenging in these difficult economic times,” Mr. Tressel said. T. David Garcia, associate vice president for enrollment management at Kent State University, points to a lack of financial aid as key to a stall in summer enrollment for the university. “It’s getting really difficult for students to take the summer courses,” Mr. Garcia said. Finances could be one reason schools such as Kent State and Cuyahoga Community College are expecting relatively flat enrollment this summer. Still, the benefits to summer enrollment are many, school administrators said. They point to smaller class sizes, lower tuition rates and a
MONEY MATTERS Students taking summer courses need to be aware of how the financial aid they’re using affects them during the rest of the year, said Michelle Ellis, executive director of the Office of Student Financial Aid at the University of Akron. For the most part, student scholarships aren’t available in the summer, Ms. Ellis said. Some government grants or loans can be used in the summer, she said, but it will take away from the total amount available to students. Borrowing in the summer isn’t usually a problem for students who have a defined plan, but for students who switch majors or schools, those extra semesters may mean they run out of money, Ms. Ellis said. For a brief period of time, from 2009 to 2010 or 2011, depending on the school, the Pell grant was available to students yearround. Students could receive a
faster track to graduation. Mr. Garcia highlighted individualized attention from teachers and fewer distractions on campus. Mr. Tressel noted the summer is a good time for students who want to do internships or co-ops during the fall or spring to free up their schedules for the future or make up classes they might have put off. Summer also is a good time for students to tackle troublesome courses one at a time, said Karen Miller, vice president for enrollment management and student affairs at Cuyahoga Community College.
Numbers game When jobs were scarce in the heart of the recession, Kent State saw increases in summer enrollment at the main and regional campuses, Mr. Garcia said, but those numbers have been flat in recent years. There are no hard numbers yet for this year, since Kent State’s summer courses don’t begin until mid-June, but he said it looks like enrollment will be similar to 2012. A little more than 19,000 students enrolled in Kent State’s three summer sessions last year, according to an email from university spokesman Eric Mansfield. Ms. Miller saw the same trend at Tri-C: the school enrolled record numbers of students in 2009 and 2010, but saw decreases in the summers of 2011 and 2012. So far this summer, enrollment is up by
about 1.5% for full-time equivalency, she said. About 15,000 students are enrolled part-time or full-time in this summer’s session, which began May 28. The college has been working hard to retain its students and increase enrollment across all semesters, Ms. Miller said. The focus is on completion, not just recruitment. Advisers can help students map out an academic plan and stay on track. Tri-C also uses the summer to get prospective students thinking about college with programs aimed at lo-
WHERE ACADEMIC EXCELLENCE MEETS THE REAL WORLD
grant in the summer without cutting into their grants for the fall and spring. T. David Garcia, associate vice president for enrollment management at Kent State University, thinks the elimination of that program affected students who enrolled in classes in the summer. “Students had to find funding elsewhere,” he said. Ms. Ellis didn’t think the elimination of that exact program had a big impact on summer enrollment — in her experience, students don’t tend to rely on any one source of funding. However, she still suggests that students visit their college’s financial aid office to talk about how different levels of summer financial aid will affect the money that will be available to them in grants and loans later in the year. “Only borrow what you need,” she said. — Rachel Abbey McCafferty cal high school students in subject areas such as health and math. Akron also has been implementing some non-traditional classes to help students get an early start, including a new program called ZipStart. ZipStart will allow first-year students who have been accepted by the university to take up to two general education classes in the summer at a much lower cost, saving students anywhere from $550 to $3,500. While Mr. Tressel said he hopes this program will increase the number of first-year students enrolling in summer classes, estimates for this year were not available. Akron had about 10,700 students enrolled last summer, according to numbers provided by the university.
Listening to demand John Carroll University is one college that’s bucking the dismal summer enrollment trend; the university has seen an increase of about 40% from 2012 to 2013, said vice president for enrollment Brian Williams.
John Carroll saw summer enrollment decrease during and after the recession, with its lowest enrollment reaching below 800 in 2011. But as of May 28, about 1,000 students were enrolled for summer classes this year, about a third of the total student body, Mr. Williams said. Most of John Carroll’s students are trying to fit more experiences in their four years, taking on extra majors or enrolling in study abroad programs, rather than trying to graduate early, Mr. Williams said. As students moved to more of a year-round schedule, the school started to see a lot of its students taking classes at other universities during the summer and wanted to change its offerings to better serve them at John Carroll. “We are just listening to our student demand,” Mr. Williams said. The university began offering more introductory and foundational courses, such as introduction to biology or microeconomics, to introduce students to new majors or help them get general education requirements out of the way, Mr. Williams said. The summer schedule is much more flexible than the fall and spring semesters: there are more classes before 10 a.m. and after 5 p.m. to give students flexibility around jobs. John Carroll also is offering more online courses, which allows students to take classes through the university when they go home for the summer, Mr. Williams said. Credit for classes taken at other schools usually transfers, but the grade rarely does, so it wouldn’t count toward a GPA. Kent State also has been offering more online courses in the summer. More than one-third of the nearly 2,600 summer courses are being offered online this year, Mr. Mansfield said. This number can include multiple sections of the same course and does not include individual study with just one student. Mr. Garcia said online courses have been increasing in popularity, even among more traditional students. While the classes were originally designed for students who were away from campus, Mr. Williams said that more and more students who live on campus have been taking them, too. ■
All of our core classes begin with a real-world business challenge posed directly from Northeast Ohio-based companies, large and small. Our integrated track courses are team taught by expert faculty. We combine several business disciplines into each class, empowering you to quickly assess real-world business problems and implement the best solutions. Build your future with one of these programs: t .BTUFS PG #VTJOFTT "ENJOJTUSBUJPO .#"
t .BMPOF .BOBHFNFOU 1SPHSBN ..1
t #BDIFMPS T %FHSFF $PNQMFUJPO t .BTUFS PG "SUT JO 0SHBOJ[BUJPOBM -FBEFSTIJQ ."0-
Learn more and apply: go.jcu.edu/mba
Malone.edu
20130610-NEWS--19-NAT-CCI-CL_--
6/6/2013
3:24 PM
Page 1
HIGHER EDUCATION
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS 19
Professors often have added skill — recruiting Faculty members meet with high school students, serve as goodwill ambassadors By SHARON SCHNALL clbfreelancer@crain.com
T
he phone calls come in once a week at the start of the school year. Then in February and until the end of the school year, Ella Kirk, professor of French, receives two or three of these calls each week. “I get a call from admissions, asking, ‘Can they sit in your class?’ ‘Can you meet with them?’ � said Dr. Kirk, chairwoman of the Modern Languages and Classics Department at Hiram College. “They� are high school students, usually juniors and seniors, touring the campus. College professors are expected to have strong teaching and research abilities. As it turns out, they also are gifted goodwill ambassadors, spokespersons and cheerleaders on behalf of their institution, department and discipline. High school students visit with faculty a number of ways: at campus open houses; attending the professor’s class; small group information sessions with other high school students and a faculty member; and one-on-one in the professor’s office. David Samols, professor of bio-
chemistry at Case Western Reserve University, is one of eight biochemistry professors identified by the university’s admissions office as being ready and willing to meet with high school students. He also is the department’s program director. He and his colleagues serve high school students throughout the year, meeting annually with 20 to 30. When Dr. Samols talks with students, he said he has a message to convey. “We blend the personal attention of the medium-sized college with the research opportunities of a large, major university,� said Dr. Samols, who has been on CWRU’s faculty since 1980. “When we’re recruiting students from high school, we advertise the blend. That’s our strength.�
Sounding boards Dr. Samols also fields questions concerning anything from laboratory safety to medical school opportunities. He also conveys, “We are not an easy major. I make it clear that we have a lot of requirements.� Has Dr. Samols ever played a role in a high school student removing biochemistry studies from
“We want to be realistic. We want to make sure students know what the program involves. It may be a turnoff.� – David Samols professor of biochemistry, Case Western Reserve University, on his message to high school students consideration as a result of the faculty encounter? Simply put: Yes. “We want to be realistic. We want to make sure students know what the program involves,� he said. “It may be a turnoff.� The same is true of prospective language majors who talk to Dr. Kirk, who has been with Hiram College since 1993. “I have a very strong ethic about my job,� she said. “Much as I would like 50 majors in French, it’s not realistic to push a discipline on them.� The admissions office at Cleveland State University encourages high school students to meet with a faculty member, said Heike Heinrich, director of undergraduate admissions and student transition.
GLOBALLY recognized NATIONALLY ranked LOCALLY vital
Staff efforts are particularly targeted toward connecting faculty and prospective students during Junior Day and the Green and White Visit. The latter is for high school seniors who have applied and been admitted to the school; that annual event attracts 75 students who have declared their intent to enroll at Cleveland State and others who remain undecided, Ms. Heinrich said. On a Green and White visit, students can attend a class and meet with a faculty member. The largest requests for faculty visits by discipline, Ms. Heinrich said, are for the sciences and health careers. “Admissions can talk about student services, the campus location, the value of the institution,â€? Ms. Heike said. “The faculty visit brings it down to the major and the individual student’s academic interest.â€? The faculty encounter can impact the final outcome. “It’s going to go into helping them make the decision,â€? said Eileen Blattner, chairwoman of the guidance department of Shaker Heights High School. “(From the faculty encounter), they know the intensity of the program, the availability of the professors to the students, the course offerings. That’s very important to a student who is seeking information ‌ beyond the numbers, the school
ratings.�
Patience is a virtue The professors who are successful with a high school student have a lot of patience and remember what they were like at age 18, Dr. Kirk said. “You need to understand that kids that age have big, big dreams ‌ unrealistic dreams,â€? she said. “You have to have enough diplomacy not to crush those dreams but skills to help refine them some.â€? It also means helping the student relax. Meeting with a faculty member, perhaps one with gray dashes at the temples, can be a bit intimidating. Dr. Samols said students’ interviewing styles range from those who arrive with a two-page list of questions to those who may never say a thing. As an ice breaker, Dr. Kirk has offered up personal information: She was a first-generation student and will relate her experiences if the prospective student also is the first family member attending college. If students are interested in studying abroad, she will talk about her four years combined, living in France. “It’s fine if they’re scared,â€? Dr. Samols said. “I try to ask simple questions of some kind. I try to lighten it up, tell a joke — although I’m never funny.â€? â–
Kent State University is the region’s ďŹ rst-choice public university s 0ROGRAMS SCHOOLS AND COLLEGES RANKED AMONG THE WORLD S BEST s 2ANKED BY THE #ARNEGIE &OUNDATION FOR THE !DVANCEMENT OF 4EACHING AMONG THE NATION S TOP PUBLIC HIGH RESEARCH UNIVERSITIES s 'ENERATED BILLION IN ADDED INCOME TO THE .ORTHEAST /HIO ECONOMY s -ORE THAN GRADUATES WORLDWIDE s #ELEBRATING MORE THAN YEARS OF EXCELLENCE IN ACTION
Kent State University, Kent State and KSU are registered trademarks and may not be used without permission. Kent State University, an equal opportunity, afďŹ rmative action employer, is committed to attaining excellence through the recruitment and retention of a diverse workforce. 13-0704
www.kent.edu
20130610-NEWS--20-NAT-CCI-CL_--
6/6/2013
4:22 PM
Page 1
HIGHER EDUCATION
20 CRAIN’S CLEVELAND BUSINESS
JUNE 10 - 16, 2013
Kent keeps its students keen on rules with Plagiarism School Library staff works with those who have been referred by faculty, hearing panel By SHARON SCHNALL clbfreelancer@crain.com
K
ent State University in 2012 implemented both a Plagiarism School and an updated policy that further addresses plagiarism and other cheating actions, said Vanessa Earp, associate professor and interim head for instructional services for university libraries. The Plagiarism School was developed in house, drawing primarily from curriculum and protocols created by library personnel at the Kent State Stark campus in 2006. Those ideas were subsequently tested and refined throughout the 2011-2012 school year. Library staff learned what worked as they readied the program for an August 2012 rollout. “Students liked sitting down with someone, other than their faculty member (who identified their plagiarism), and having explained why this (their work) is plagiarism,” said Ms. Earp, who is
the subject librarian for the College of Education, Health and Human Services. They also liked real-world plagiarism examples from the news, academia and industry and understanding “how plagiarism could hurt them in their professional lives.” The referred student must be considered a first-time offender of unintentional plagiarism; their committed plagiarism cannot be egregious in nature. To date, 61 students, undergraduate and graduate, have been referred to this program. Most were referred by faculty; a few referrals were initiated through the academic hearing panel, Ms. Earp said. Additionally, Plagiarism School referrals are maintained in a centralized database in the Office of Student Conduct. The newly created database makes it easier to uniformly identify and track students who commit plagiarism including those who have done so on more than one occasion; although access is highly restricted.
“The students find it much less threatening to go to us than the Office of Student Conduct.” – Vanessa Earp associate professor and interim head for instructional services, Kent State University Students identified for committing egregious plagiarism are not referred to the Plagiarism School, nor are previous plagiarizers. Furthermore, faculty who identify and formally report the plagiarism may bypass Plagiarism School and pursue other avenues of remediation. Plagiarism School is offered on all Kent State campuses and managed by the librarians on those campuses. On the Kent campus, designated library personnel rapidly grew from one librarian, Ms. Earp, to seven who work individually and confidentially with students. “A lot of people see librarians as the gatekeepers of information,” Ms. Earp said. “This fits in with what we do in the information society that we live in. We’re seen as a neutral third party. We’re nonjudgmental.”
25 SEPT 7:30AM - 3:00PM
Panel Discussions:
Executive Caterers at Landerhaven 6111 Landerhaven Dr. Mayfield Heights
LEARN MORE AT: CrainsCleveland.com/HCSummit
t $IBOHF ZPVS CVTJOFTTFT must make now CFGPSF UIF OFYU XBWF IJUT t &YDIBOHFT will affect ZPVS CVTJOFTT BOE XPSLFST LOPX XIBU UP EP now
Presented by:
Premier sponsor:
t .JTTJPO *NQPTTJCMF 3FUBJO UBMFOU and DPOUBJO IFBMUIDBSF DPTUT t &OHBHFNFOU TUSBUFHJFT UP combat POHPJOH FNQMPZFF uncertainty
Moderator sponsor:
Major sponsors:
Sponsorship information CONTACT: Nicole Mastrangelo nmastrangelo@crain.com or 216-771-5158
Student participation, following a formal referral, is voluntary. However, if the student declines, the instructor would sanction the student. If the student feels they did nothing wrong, they must appeal the sanction, and the matter is referred to an academic hearing panel, Ms. Earp said. “The students find it much less threatening to go to us than the Office of Student Conduct. They find it educational,” Ms. Earp said. This summer, a survey will be mailed to referring faculty and participating students to get feedback; results will be analyzed over the summer. Ms. Earp said library personnel are aware of increased requests with citation support. Program publicity has attracted curious students with citation and other related questions. “Students realize the library is a place to go to for help,” she said. ■
MCKINLEY WILEY
Vanessa Earp is associate professor and interim head for instructional services for university libraries at Kent State.
Plagiarism: Resources are available to give help continued from PAGE 15
‘Continuous education’
“We do give quite a bit of latitude to our instructors,” said Peter Kvidera, associate dean for academic affairs in the College of Arts and Sciences and associate professor of English at John Carroll. “We really see the faculty as being the authorities on the method of research and the level of egregiousness of the plagiarism.” If egregious or blatant, the faculty member will talk to the student but most likely also will begin a formal, disciplinary process; same for a repeat offender. Unintentional plagiarism often remains a private matter between professor and student — a good practice for helping the student, but difficult for identifying, tracking and measuring campus plagiarism. Also, where cases are formally reported to administration, the information may be housed in different databases among campus units limiting a comprehensive profile of student activity. At Lake Erie College, centralized tracking of reported cases, through the registrar’s office, began three years ago, Dr. Holwick said. The system was instituted to identify “multiple student offenses in different classes” and measure the incidence of plagiarism over time. “We don’t have an overwhelming number. It’s well under 5% of the writing assignments that go on in the institution,” she said. At John Carroll, reported plagiarism incidents are recorded separately in the College of Arts and Sciences and Boler School of Business, Dr. Kvidera said. On average, he said, eight to 10 cases of plagiarism are formally reported to the College of Arts and Sciences each semester; a letter is placed in the student’s file. At Cleveland State, plagiarism is recorded as an act of misconduct on the student’s record, which is maintained by the registrar’s office, said Valerie Hinton Hannah, assistant dean of students/judicial affairs in the department of student life. The university does maintain a centralized database tracking reported plagiarism cases.
A lowered grade, failing the course and expulsion are possible outcomes for serious offenders. But with unintentional plagiarism typically what follows is teaching, patience and forgiveness. “It requires continuous education,” said Mary McDonald, director of the writing center and Writing Across the Curriculum at Cleveland State and adjunct English professor. “Our (writing center) staff will sit with them (students) and ask them questions. We analyze how close the paragraph is to the original and give them tips to avoid plagiarism.” Students benefit from time management counseling: how to plan and organize for a writing deadline; when and how to responsibly ask a professor for an extension, Dr. Higgins said. “Time management is a real factor,” he said. “They feel a time crunch and suddenly picking a paragraph off the Internet seems OK.” They can be counseled about getting in the habit of asking for help from the writing center, their current professor or other campus resource. Students need to gain confidence with academic conventions of research, authorship and writing, Dr. McDonald said. “When a student is not confident, doesn’t understand the material, is faced with a tight deadline, the temptation to plagiarize is high,” she said. Plagiarism prevention strategies are not exclusively for students. Faculty can design assignments that minimize plagiarism: offer sufficient time for completion; divide the paper into installments for interim faculty feedback; require draft submissions; and/or request one re-write as a deliverable. Dr. Pace said he advises faculty, “Don’t sacrifice the teaching of writing because you’re trying to be vigilant to plagiarism. Just teach writing … you will worry less about plagiarism.” ■
20130610-NEWS--21-NAT-CCI-CL_--
6/7/2013
2:20 PM
Page 1
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
21
CONTRIBUTED PHOTO
This rendering shows an aerial view of the $80 million medical education building that will be constructed at Case Western Reserve University.
Clinic: UH says partnership with Case won’t be affected by big development continued from PAGE 1
the beginning. They talk of a cluster of buildings on or near the 11-acre parcel of land — a campus of sorts, complete with dorm space — designed to train the next generation of physicians. “When I was thinking about this possibility and talking with the Cleveland Clinic, I wanted to make sure there was enough room on the site to do more than just this single building,” Case Western Reserve president Barbara R. Snyder said in an interview last Thursday, June 6. “It’s too early to say for what, but we left some space for the potential to do something down the road.” With the new building and the potential for more, the Clinic at last will have what its CEO, Dr. Delos “Toby” Cosgrove, sees as the physical manifestation of the Clinic’s desire to be regarded as a leader in medical education. Education has been a component of the Clinic’s mission since its founding in 1921, and for the last 11 years has operated jointly with CWRU a medical school — the Lerner College of Medicine — aimed at training physician scientists. However, the health system hasn’t been able to muster the same cachet as some of the other players in the medical education realm — something Dr. Cosgrove said the Clinic rightfully deserves. “(Our name) is not Johns Hopkins University or UCLA, it’s the Cleveland Clinic,” Dr. Cosgrove said in an interview last Thursday. “There was a lot of perception about us that we were not educators, but I think this (new building) is a terrific opportunity to be more common in that world. We’re also going to attract better and better students.”
Opportunity knocks The arrangement appears to benefit both parties, as the Clinic will put to rest its long search for a medical school partner, and will ameliorate Case Western Reserve’s worries that another player — such as Columbia University, which was floated as a possible Clinic medical school sidekick in 2007 — could encroach on its turf. “Being able to cement that rela-
tionship is so good for Case Western Reserve University,” Ms. Snyder said last week. “I think it’s good for the Cleveland Clinic, and I think it’s great for our students and the community.” Case Western Reserve first announced plans to construct a new building to support its medical school last September on the site of the now-defunct Mt. Sinai Medical Center on East 105th Street in Cleveland. Clinic officials said they saw an opportunity to ward off a duplication of services by providing a unified space for the Clinic’s Lerner College of Medicine, which is run jointly by both institutions, and the university’s traditional medical school track. “What we have is an opportunity to take these shining stars in the crown of the School of Medicine and figure out the best tactics to train students to be professionals in the 21st and 22nd centuries,” said Dr. James Young, dean of the Lerner College of Medicine.
About those UH ties … While the Clinic and Case Western Reserve positioned the announcement as a joyous union that would strengthen Northeast Ohio’s reputation as a health care mecca, all eyes turned immediately to University Hospitals, the Clinic’s nearby rival. UH has a longstanding relationship as Case Western Reserve’s “primary” affiliate in medical education and research, and the health system’s flagship hospital — UH Case Medical Center — has incorporated the university’s name since 2006. Dr. Fred Rothstein, president of UH Case Medical Center, downplayed speculation that UH was blindsided by the announcement and said it wouldn’t affect the health system’s strong ties with the university. He noted that the bulk of the medical school’s operations would remain on the university’s campus, which blends seamlessly into UH’s main campus near University Circle. Dr. Rothstein said he first learned of the deal through a phone call from Dr. Pamela Davis, dean of Case Western Reserve’s School of Medicine, on Saturday, June 1, a day before the Clinic and Case
Western Reserve went public with their plans. “The way I look at it is, we knew a new medical education building was going to be off campus,” Dr. Rothstein said in an interview last Thursday. “It simply moved to a different location. We know the objective was to create a more modern space for medical education and from my perspective, this is something that will help the medical school long-term.” Also, officials from Case Western Reserve stressed the deal with the Clinic wouldn’t affect the university’s relationships with The MetroHealth System or the Louis Stokes Cleveland VA Medical Center. Conversely, Dr. Cosgrove said he wasn’t concerned about Case Western Reserve still being tied closely with UH.
The Power of Collaboration SM Aggressive Financing for Businesses and Investors in Canton! /RDQV XS WR 0 /RZ )L[HG 5DWHV 8S WR <HDU 7HUPV <HDU $PRUWL]DWLRQ
A transformative symbol The Clinic and Case Western Reserve will share in the cost of construction and fundraising for the new medical school building, which is slated to open sometime in 2016. Before Dr. Cosgrove came calling, the university hadn’t planned to break ground on the building at the Mt. Sinai site until 2016, assuming the university could meet its fundraising goals. That’s good news for Dr. Davis, who said she’ll be able to show the medical school’s accrediting body “a full-blown building instead of a shovel and a hard hat.” With a new building, the medical school anticipates adding another 20 to 30 students per year. Dr. John Prescott, chief academic officer for the Association of American Medical Colleges, the Washington, D.C.-based accrediting body for medical schools, said the type of building the two parties dreamed up is a “symbol” of how medical education is being transformed. “We’re no longer looking at the lecture halls where students are sitting dutifully listening to a professor talk about particular aspects of science or medicine,” Dr. Prescott said. “We’re seeing education become much more interactive and requiring much more of the use of technology. All of these things seem to be incorporated into this learning center.” ■
)ROORZ XV RQ /LQNHG,Q
Jonathan Mokri 440.526.8700 jmokri@cbscuso.com
www.cbscuso.com
WHAT IGNITES YOU? E D U C AT I N G P H Y S I C I A N S , P H A R M A C I S T S A N D H E A LT H C A R E R E S E A R C H E R S
n e o m e d . e d u
20130610-NEWS--22-NAT-CCI-CL_--
22
6/7/2013
2:22 PM
Page 1
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
LARGEST NONPROFITS RANKED BY 2013 EXPENSES
Name Address Rank Phone/website
Expenses 2013 Expenses 2012 (millions) (millions)
Total revenue 2012 (millions)
Income from private support
Income for program services
2012 fund balance (thousands) Purpose
Top local executive
1
Western Reserve Area Agency on Aging 925 Euclid Ave., Suite 600, Cleveland 44115 (216) 621-8010/www.psa10a.org
$121.1
$104.8
$104.8
1.0%
98.0%
($201.9)
To enhance the ability of older persons to maintain high levels of health, productivity and independence
Ronald Hill CEO
2
Catholic Charities, Diocese of Cleveland 7911 Detroit Ave., Cleveland 44102 (216) 334-2900/www.clevelandcatholiccharities.org
$100.6
$94.4
$100.1
37.6%
83.6%
$74,305.0
To provide leadership in the health and human service fields in the counties that comprise the Catholic Diocese of Cleveland
Patrick Gareau president, CEO
3
Hospice of the Western Reserve 17876 St. Clair Ave., Cleveland 44110 (800) 707-8922/www.hospicewr.org
$95.0
$96.5
$978.0
15.4%
84.5%
$53,200.0
To provide palliative comfort care for people with serious illness, support for their caregivers and bereavement services
William E. Finn CEO
4
Menorah Park Center for Senior Living 27100 Cedar Road, Beachwood 44122 (216) 831-6500/www.menorahpark.org
$69.2
$68.4
$66.8
45.7%
96.3%
$18,658.5
A not-for-profit Medicare/Medicaid-certified health care provider that operates residential and outpatient services
Steven Raichilson executive director
5
Jewish Federation of Cleveland 25701 Science Park Drive, Cleveland 44122 (216) 593-2900/www.jewishcleveland.org
$67.0
$65.1
$86.5
99.0%
85.4%
$348,831.0
Allocates funds to social service, religious and educational organizations in Cleveland and worldwide
Stephen H. Hoffman president
6
Cleveland Foodbank 15500 S. Waterloo Road, Cleveland 44110 (216) 738-2265/www.clevelandfoodbank.org
$61.5
$53.3
$52.7
69.0%
96.0%
$3,591.4
The Cleveland Foodbank works to ensure that everyone in our communities has the nutritious food they need every day
Anne Campbell Goodman president, CEO
7
Judson Services Inc.(1) 2181 Ambleside Drive, Cleveland 44106 (216) 721-1234/www.judsonsmartliving.org
$51.5
$34.4
$44.2
81.0%
96.0%
$10,296.1
To provide programs and living options for individuals taking responsibility for their successful aging
Cynthia H. Dunn president, CEO
8
The Cleveland Museum of Art 11150 East Blvd., Cleveland 44106 (216) 421-7340/www.clevelandart.org
$50.0
$52.1
$89.1
28.6%
44.3%
$807,814.7
One of the world's comprehensive art museums and one of Northeast Ohio's principal civic and cultural institutions
David Franklin director
9
The Musical Arts Association 11001 Euclid Ave., Cleveland 44106 (216) 231-7300/www.clevelandorchestra.com
$48.8
$48.4
$48.3
96.0%
85.0%
$153,554.0
To provide inspirational experience by serving the art of music at the highest level of artistic excellence
Gary Hanson executive director
10
OhioGuidestone 202 E. Bagley Road, Berea 44017 (440) 234-2006/www.ohioguidestone.org
$45.1
$42.6
$43.2
12.0%
87.0%
$15,114.4
To equip and empower children and families to reach their potential and become contributing members of a strong community
Richard R. Frank president, CEO
11
United Way of Greater Cleveland 1331 Euclid Ave., Cleveland 44115 (216) 436-2100/www.unitedwaycleveland.org
$44.0
$43.6
$50.1
96.7%
86.0%
$38,983.0
Addressing health and human service needs by convening partnerships, funding programs and generating resources
William Kitson president, CEO
12
PlayhouseSquare 1501 Euclid Ave., Suite 200, Cleveland 44115 (216) 771-4444/www.playhousesquare.org
$40.6
$39.4
$47.0
96.0%
91.0%
$96,670.9
To operate the performing arts center and help restore and develop the PlayhouseSquare district
Art Falco president, CEO
SOUND SOLUTIONS FOR NOT-FOR-PROFITS Contact Tim Novotny + tnovotny@maloneynovotny.com + 216.363.0100
13
Positive Education Program 3100 Euclid Ave., Cleveland 44115 (216) 361-4400/www.pepcleve.org
$40.5
$42.3
$43.5
2.0%
88.0%
$24,457.4
PEP helps troubled and troubling children learn and grow
14
The Centers for Families and Children 4500 Euclid Ave., Cleveland 44103 (216) 432-7200/www.thecentersohio.org
$40.0
$37.3
$38.6
25.0%
86.0%
$38,257.9
To give as many people as possible the Sobol Jordan opportunity to be healthy, educated, independent Sharon president, CEO and connected
15
Oriana House Inc. P.O. Box 1501, Akron 44309-1501 (330) 535-8116/www.orianahouse.org
$38.5
$38.1
$39.1
2.0%
96.0%
$13,900.0
Community corrections programs and chemical dependency treatment
James J. Lawrence president, CEO
16
Visiting Nurse Association of Ohio 2500 E. 22nd St., Cleveland 44115 (216) 931-1400/www.vnaohio.org
$38.4
$39.4
$39.4
1.9%
85.8%
$15,197.0
Provide high quality comprehensive home health and hospice care to our patients and their families
Claire M. Zangerle president, CEO
17
Volunteers of America of Greater Ohio 8225 Brecksville Road, Suite 206, Cleveland 44141-1362 (440) 717-1500/www.voago.org
$38.0
$31.0
$34.0
52.0%
82.0%
$24,000.0
Spiritually-based human services organization providing social services that promote selfsufficiency and foster independence
Dennis J. Kresak president, CEO
18
Christian Healthcare Ministries Inc. 127 Hazelwood Ave., Barberton 44203 (800) 791-6225/www.christianhealthcareministries.org
$37.1
$28.8
$30.0
100.0%
89.0%
$4,968.1
To glorify God, show Christian love and experience God's presence as Christians share each other's medical bills
Howard S. Russell president, CEO
19
Montefiore One David N. Myers Parkway, Beachwood 44122 (216) 360-9080/www.montefiorecare.org
$37.0
$36.1
$36.7
12.0%
89.0%
$27,900.0
To provide a comprehensive system of health care and wellness services to seniors on campus and throughout the community
Lauren B. Rock president, CEO
20
Hattie Larlham 7996 Darrow Road, Suite 10, Twinsburg 44087 (800) 233-8611/www.hattielarlham.org
$35.5
$32.4
$32.7
17.0%
88.0%
$28,600.0
To provide care for 1,500 children and adults with developmental disabilities
Dennis Allen CEO
21
The Village Network P.O. Box 518, Smithville 44677 (330) 202-3802/www.thevillagenetwork.org
$30.0
$26.2
$27.3
5.0%
86.0%
$1,140.0
To work in partnerships that will empower youth and their families to build brighter futures.
Richard Graziano president, CEO
22
Akron-Canton Regional Foodbank 350 Opportunity Parkway, Akron 44307 (330) 535-6900/www.akroncantonfoodbank.org
$28.5
$26.7
$29.3
91.0%
93.0%
$11,119.6
To provide food to charitable agencies that feed Daniel Flowers people in need in eight counties president, CEO
23
Koinonia Homes Inc. 6161 Oak Tree Blvd., Suite 400, Independence 44131 (216) 588-8777/www.koinoniahomes.org
$25.8
$25.2
$24.9
1.0%
98.0%
$3,946.9
Koinonia provides residential and day support, along with vocational and career services to individuals with developmental disabilities
24
Beech Brook 3737 Lander Road, Cleveland 44124 (216) 831-2255/www.beechbrook.org
$25.5
$25.6
$26.0
12.0%
88.0%
$34,589.1
To advance the emotional well-being of children, Debra Rex youth and families by providing behavioral health, CEO permanency and educational services
25
Vocational Guidance Services 2239 E. 55th St., Cleveland 44103 (216) 431-7800/www.vgsjob.org
$25.4
$27.0
$28.0
7.0%
85.0%
$22,978.0
Preparing people with barriers to employment for a brighter future
Robert E. Comben Jr. president, CEO
26
Stein Hospice Service Inc. 1200 Sycamore Lane, Sandusky 44870 (419) 625-5269/www.steinhospice.org
$25.4
$29.8
$30.3
NA
90.0%
$2,610.0
Provides hospice and palliative care to patients and families in Erie, Ottawa, Huron, Seneca, Sandusky, Brown and Lorain counties
Jan Bucholz CEO
27
Coleman Professional Services(2) 5982 Rhodes Road, Kent 44240 (330) 673-1347/www.coleman-professional.com
$25.0
$23.7
$24.7
17.8%
82.3%
$5,030.8
Behavioral health, rehabilitation and residential programs that improve the lives of individuals, families and businesses
Nelson W. Burns president, CEO
28
Cleveland Housing Network 2999 Payne Ave., Room 306, Cleveland 44114 (216) 574-7100/www.chnnet.com
$24.7
$33.6
$33.8
73.0%
93.0%
$21,623.4
To develop affordable housing for low- to moderate-income families and provide home ownership opportunities
Robert S. Curry executive director
Frank A. Fecser CEO
Diane Beastrom president, CEO
20130610-NEWS--23-NAT-CCI-CL_--
6/7/2013
2:23 PM
Page 1
JUNE 10 - 16, 2013
Name Address Rank Phone/website
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Expenses 2013 Expenses 2012 (millions) (millions)
Total revenue 2012 (millions)
Income from private support
Income for program services
2012 fund balance (thousands) Purpose
23
Top local executive
29
Wesleyan Senior Living 807 West Ave., Elyria 44035 (440) 284-9000/www.villageliving.com
$24.2
$23.5
$24.6
60.0%
95.0%
$2,900.0
30
Jewish Family Service Association of Cleveland 3659 S. Green Road, Suite 322, Beachwood 44122 (216) 292-3999/www.jfsa-cleveland.org
$24.0
$23.9
$24.5
41.0%
86.0%
NA
Community-based services and home care for people with mental disabilities, older adults, and families affected by domestic violence and homelessness
Susan Bichsel president, CEO
31
Goodwill Industries of Greater Cleveland and East Central Ohio Inc. 408 Ninth St. SW, Canton 44707 (800) 942-3577/www.goodwillgoodskills.org
$23.6
$21.1
$24.3
NA
NA
NA
To improve the quality of life and employment opportunities for people in the communities we serve
Ken Weber president, CEO
32
Laurel Lake Retirement Community 200 Laurel Lake Drive, Hudson 44236 (330) 650-0681/www.laurellake.org
$21.4
$20.8
$24.6
89.0%
99.0%
$6,314.0
To enhance the quality of life for adults by encouraging wellness, self-determination and independence
David A. Oster executive director
33
Jennings Center for Older Adults 10204 Granger Road, Garfield Heights 44125 (216) 581-2900/www.jenningscenter.org
$19.1
$18.3
$18.7
42.0%
NA
$15,812.0
A nonprofit, Catholic-based continuum of care campus for seniors since 1942
Martha M. Kutik president, CEO
34
Our Lady of the Wayside 38135 Colorado Ave., Avon 44011 (440) 934-6007/www.thewayside.org
$18.3
NA
$17.9
11.0%
92.0%
$1,033.2
Providing residential, respite, transportation and adult day programming for children and adults with developmental disabilities
Terry Davis president, CEO
35
Mental Health Services for Homeless Persons 1744 Payne Ave., Cleveland 44114 (216) 623-6555/www.mhs-inc.org
$18.0
$17.7
$17.7
4.0%
89.0%
$4,075.1
Reaching out to adults and children in NE Ohio to Susan Neth end homelessness, prevent suicide, resolve CEO, executive director behavioral health crisis and overcome trauma
36
Kendal at Oberlin 600 Kendal Drive, Oberlin 44074 (440) 775-0094/www.kendalnorthernohio.org
$15.9
$15.2
$17.4
95.0%
93.0%
$18,617.1
Kendal at Oberlin is a continuing care retirement Barbara W. Thomas community offering opportunities for growth and CEO cultural richness in a small college town
37
The Salvation Army of Greater Cleveland 2507 E. 22nd St., Cleveland 44115 (216) 861-8185/www.salvationarmycleveland.org
$15.7
$15.6
$16.0
NA
NA
NA
38
Ohio Aerospace Institute 22800 Cedar Point Road, Brook Park 44142 (440) 962-3000/www.oai.org
$15.6
$16.2
$15.7
13.0%
91.0%
$7,614.3
Enhance and expand Ohio's aerospace capabilities through research and technology partnerships, education and training
39
New Avenues to Independence Inc. 17608 Euclid Ave., Cleveland 44112 (216) 481-1907/www.newavenues.net
$14.7
$14.2
$13.9
1.7%
85.6%
$2,744.0
To help individuals with disabilities become more Thomas M. Lewins independent executive director
40
The Nord Center 6140 S. Broadway Ave., Lorain 44053 (440) 233-7232/www.nordcenter.org
$14.0
$13.9
$14.2
NA
79.0%
$613.5
41
United Way of Summit County 90 N. Prospect St., Akron 44304 (330) 762-7601/www.uwsummit.org
$12.7
$12.6
$12.6
100.0%
85.6%
42
The Benjamin Rose Institute on Aging 11890 Fairhill Road, Cleveland 44120 (216) 791-8000/www.benrose.org
$12.6
$11.6
$10.4
12.0%
43
Child Guidance & Family Solutions 18 N. Forge St., Akron 44304-1317 (330) 762-0591/www.cgfs.org
$12.2
$10.9
$10.7
44
Recovery Resources 3950 Chester Ave., Cleveland 44114-4625 (216) 431-4131/www.recres.org
$12.0
$10.9
44
JumpStart Inc. 6701 Carnegie Ave., Suite 100, Cleveland 44103 (216) 363-3400/www.jumpstartinc.org
$12.0
46
United Cerebral Palsy of Greater Cleveland 10011 Euclid Ave., Cleveland 44106 (216) 791-8363/www.ucpcleveland.org
47
To provide quality housing and services to aging Mike Rogan adults president, CEO
A religious organization that provides an array of Major Lurlene Johnson human services to help improve the quality of life divisional secretary, in Greater Cleveland Greater Cleveland Michael L. Heil president, CEO
Comprehensive behavioral health care in Lorain County: mental health, addiction, crisis and sexual assault services
Amy Denger chief executive and operating officer
$13,009.0
We improve lives by mobilizing community resources to advance the common good
Robert Kulinski president
79.0%
$114,143.0
To advance the health, independence and dignity Richard Browdie of older adults by raising the standards for president, CEO quality of care
10.4%
91.9%
$4,163.9
To help mend the lives of children, families and adults suffering from emotional and mental disorders.
Elaine M. Harlin president
$11.5
NA
NA
$8,077.1
Helping people triumph over mental illness, alcoholism, drug and other addictions
Debora A. Rodriguez president, CEO
$10.9
$10.6
23.0%
86.0%
$16,140.3
Economic development in Northeast Ohio venture development organization
Raymond T. Leach CEO
$11.6
$10.5
$10.6
21.9%
93.0%
$9,634.5
Children's therapies, parent supports, as well as Patricia S. Otter, adult residential, vocational and assistive president, CEO; Matthew technology services Cox, chairman
Cleveland Museum of Natural History 1 Wade Oval Drive, Cleveland 44106 (216) 231-4600/www.cmnh.org
$11.2
$12.7
$13.0
84.0%
76.0%
$141,701.4
48
Second Harvest Food Bank of North Central Ohio 7445 Deer Trail Lane , Lorain 44053 (440) 960-2265/www.secondharvestfoodbank.org
$10.7
$10.4
$10.5
87.3%
97.7%
$80.0
49
Neighborhood Progress Inc. 1956 W. 25th St., Suite 200, Cleveland 44113 (216) 830-2770/www.npi-cle.org
$10.3
$6.8
$4.4
87.6%
90.0%
$7,388.4
To foster communities of choice and opportunity Joel Ratner throughout Cleveland. president
50
Lutheran Metropolitan Ministry 4515 Superior Ave., Cleveland 44103 (216) 658-4638/www.lutheranmetro.org
$10.2
$10.0
$10.6
36.0%
82.0%
$7,322.3
To promote shalom, justice and right Genszler relationships, through service and advocacy with Andrew president, CEO those oppressed and forgotten
51
American Red Cross, Northeast Ohio Region 3747 Euclid Ave., Cleveland 44115 (216) 431-3010/www.redcross.org/greatercleveland
$9.0
$9.2
$9.9
92.0%
78.0%
NA
Disaster relief, emergency military communications, international tracing and services, job training, health and safety training
Mary-Alice Frank CEO
52
Great Lakes Science Center 601 Erieside Ave., Cleveland 44114 (216) 694-2000/www.greatscience.com
$8.9
$9.0
NA
NA
NA
NA
To engage visitors through fun, interactive experiences that stimulate and encourage understanding of STEM
Kirsten Ellenbogen president
53
MAGNET The Manufacturing Advocacy & Growth Network(3) 1768 E. 25th St., Cleveland 44114 (216) 391-7002/www.manufacturingsuccess.org
$8.1
$8.1
$8.1
44.0%
82.0%
$6,661.0
To support, educate and champion manufacturing in Northern Ohio
Daniel E. Berry president, CEO
54
Help Foundation Inc. 3622 Prospect Ave. East, Cleveland 44115 (216) 432-4810/www.helpfoundationinc.org
$7.3
$7.1
$7.4
2.8%
84.0%
$8,511.9
Provides residential and support services to children and adults with developmental disabilities
Daniel J. Rice executive director
55
The Holden Arboretum 9500 Sperry Road, Kirtland 44094 (440) 946-4400/www.holdenarb.org
$7.2
$6.9
$10.2
99.9%
76.6%
$129,584.6
The Holden Arboretum operates a museum of plants and conducts scientific research and educational programs
Clement W. Hamilton president, CEO
56
Legal Aid Society of Cleveland 1223 W. Sixth St., Cleveland 44113 (216) 687-1900/www.lasclev.org
$7.1
$8.0
$8.8
62.0%
87.0%
$6,861.0
To provide high-quality legal services to lowincome clients in five Northeast Ohio counties
Colleen M. Cotter executive director
57
College Now Greater Cleveland 50 Public Square, Suite 1800, Cleveland 44113 (216) 241-5587/www.collegenowgc.org
$6.1
$6.0
$6.5
86.0%
90.0%
$9,831.6
To increase college attainment through college access and success advising, financial aid counseling and scholarship services
Lee A. Friedman CEO
58
North Coast Community Homes 14221 Broadway Ave., Cleveland 44125-1953 (216) 662-1880/www.ncch.org
$5.4
$5.0
$5.4
62.0%
77.0%
$13,457.2
Safe, comfortable and affordable community housing for individuals with developmental disabilities, mental illness and other disabilities
Stephen McPeake president, CEO
59
Western Reserve Historical Society 10825 East Blvd., Cleveland 44106 (216) 721-5722/www.wrhs.org
$4.9
$4.7
$7.1
58.0%
93.0%
$33,885.4
Inspire people to discover the American experience by exploring the tangible history of Northeast Ohio
Gainor B. Davis president, CEO
To inspire, through science and education, a passion for nature, the fostering of health and leadership to a sustainable future
Evalyn Gates executive director, CEO
Providing food resources to hunger-relief agencies serving families in Crawford, Erie, Huron and Lorain counties
Juliana Chase-Morefield executive director
This list of 501(c)(3) status nonprofit organizations is an approximate compilation of the largest organizations in Northeast Ohio. Universities, colleges, foundations and hospitals were excluded. Source: Information is supplied by the organizations 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. (1) 2012 expenses did not include South Franklin Circle. (2) Fiscal year is July 1, 2011, to June 30, 2012. (3) Financial information is from the June 30, 2012, Form 990.
RESEARCHED BY Deborah W. Hillyer
20130610-NEWS--24-NAT-CCI-CL_--
24
6/7/2013
2:48 PM
Page 1
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
Startups: Investors need wins to get cash continued from PAGE 1
NONPROFITS
UJCTG OCP[ QH VJG UCOG EJCNNGPIGU HCEGF D[ HQT RTQĆ&#x201A;V DWUKPGUUGU [GV PGGF VQ TGOCKP VTCPURCTGPV QRGP CPF GPICIGF YJKNG RWTUWKPI VJGKT OKUUKQP HQT VJG )TGCVGT )QQF 1WT VGCO QH PQPRTQĆ&#x201A;V %2#U CPF EQPUWNVCPVU RTQXKFGU audit, accounting, consulting CPF tax UVTCVGIKGU tJCV CTG ENGCT SWKEM CPF QP VCTIGV VQ JGNR [QW UGTXG [QWT OGODGTU CPF EQOOWPKtKGU OQTG GHĆ&#x201A;EKGPtN[ CPF GHHGEtKXGN[
Brandon R. Miller, CPA Principal/Director, *9 0QPRTQĆ&#x201A;V #FXKUQTU millerb@hwco.com (216) 378-7224
hwco.com
â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not saying the sky is falling, but weâ&#x20AC;&#x2122;re watching this very carefully and weâ&#x20AC;&#x2122;re concerned,â&#x20AC;? Mr. Leach said. Northeast Ohio startups raised just $53 million in venture capital during the first five months of 2013 â&#x20AC;&#x201D; meaning that theyâ&#x20AC;&#x2122;ll need to raise another $40 million by the end of June to rival first-half totals from 2011 and 2012. Plus, just 26 startups had raised capital as of June 1, compared to 65 during the first half of last year. Granted, if one or two local companies snare big investments before the end of 2013, the numbers will look a lot different. That could happen, because a growing number of local tech companies have matured to the point where they can attract larger amounts of capital from outside the state, according to several sources. But a few big deals wonâ&#x20AC;&#x2122;t change the fact that more than half of the 26 venture capital firms that received money from the Ohio Capital Fund now have no more cash to invest, according to Paul Cohn, managing director of the taxpayer-backed â&#x20AC;&#x153;fund of funds,â&#x20AC;? which invests in venture capital groups that commit to financing companies in Ohio. Some of those venture firms are raising money for new funds, but others are not. Many are waiting until some of their portfolio companies are bought or go public. Only then will they be able to generate a profit for their investors â&#x20AC;&#x201D; and ask them for more money. Among the firms on the sidelines is Clevelandâ&#x20AC;&#x2122;s Early Stage Partners, which for several years has been one of the most active venture capital firms in Ohio. Some of the companies in its portfolio have raised tens of millions of dollars in follow-on financing and should produce strong returns for Early Stageâ&#x20AC;&#x2122;s investors, according to managing partner Jonathan Murray. But until that happens, it wouldnâ&#x20AC;&#x2122;t make sense to try to raise more money. â&#x20AC;&#x153;Like anybody else, we need to return capital to our investors,â&#x20AC;? he said. The same forces that are preventing venture capital firms across the nation from raising more capital impact Early Stage Partner, Mr. Murray said. Since the turn of the century, venture capital firms generally havenâ&#x20AC;&#x2122;t generated big profits. Thatâ&#x20AC;&#x2122;s partly because of the dot-com bubble burst in the early 2000s and the more recent recession, according to Mr. Murray and others interviewed for this story. Thus, the pension funds, endowments and other limited partners that invest in venture capital firms have been reluctant to do so. When they do pull the trigger, they often back larger, more established venture firms, which tend to be based on the coasts, Mr. Murray said. Newer firms that havenâ&#x20AC;&#x2122;t generated a profit recently miss out.
Glengaryâ&#x20AC;&#x2122;s lament One problem is specific to Ohio: The $150 million Ohio Capital Fund has spurred several out-of-state venture capital firms to hire local employees to hunt for promising investments in the state, but that fund has been tapped out for a few years. Local economic development groups and venture capital firms still are trying to convince the state
Legislature to renew the Ohio Capital Fund, but its prospects donâ&#x20AC;&#x2122;t look bright. Since 2010, two similar bills that would have renewed the fund passed the Ohio House with bipartisan support, but neither bill came up for vote in the state Senate. If the Ohio Capital Fund isnâ&#x20AC;&#x2122;t renewed, Glengary probably wonâ&#x20AC;&#x2122;t raise another fund, according to a letter the Beachwood-based venture capital firm sent to Ohio Gov. John Kasich last December. The letter highlights some of the more promising companies in Glengaryâ&#x20AC;&#x2122;s portfolio; they include Cleveland HeartLab, a medical testing lab that has about 100 employees, and Juventas Therapeutics, which is in the middle of a Phase II clinical trial designed to test whether the companyâ&#x20AC;&#x2122;s drug can help the body heal by attracting stem cells to the site of an injury. Eventually, Ohioâ&#x20AC;&#x2122;s relatively young base of venture capital firms will be able to stand on their own performance, but until they can build a track record they need the backing of the Ohio Capital Fund, according to the letter. The letter was signed by six Glengary partners, including retired TRW CEO Joseph Gorman; Albert Ratner, co-chairman emeritus of Forest City Enterprises; and managing partner Stephen Haynes. Mr. Haynes described the lack of action on the Ohio Capital Fund as â&#x20AC;&#x153;tragic.â&#x20AC;? If Ohioâ&#x20AC;&#x2122;s venture capital groups falter, the many startups getting seed money from JumpStart
â&#x20AC;&#x153;Like anybody else, we need to return capital to our investors.â&#x20AC;? â&#x20AC;&#x201C; Jonathan Murray, managing partner, Early Stage Partners and other groups will struggle to find the next round of money. â&#x20AC;&#x153;The end result will be much wasted effort, much like if we committed resources to building wonderful preschool, pre-k and kindergarten programs but then not having any place to educate the children in first through fourth grades,â&#x20AC;? Mr. Haynes said via email.
One goes, another stays Last year, Chrysalis Ventures of Louisville, Ky., closed its one-person Cleveland office, which it opened after receiving cash from the Ohio Capital Fund. Other out-of-state venture capital firms that hired people to look for local deals also could leave town after theyâ&#x20AC;&#x2122;re done making investments using Ohio Capital Fund money, the fundâ&#x20AC;&#x2122;s Mr. Cohn said. However, that statement doesnâ&#x20AC;&#x2122;t hold universally. Though RiverVest Venture Partners is out of money, the St. Louisbased firm plans to keep Karen Spilizewski on board in Cleveland to look for promising medical technology startups, Ms. Spilizewski said. RiverVest aims to close on a new fund within the next six months, said Ms. Spilizewski, who also is a part-time vice president at BioEnterprise Corp., a Cleveland nonprofit that assists health care companies. She admitted that the venture capital sector as a whole is in a slump, but she believes it will come out of it. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s challenging, but itâ&#x20AC;&#x2122;s not a forever thing,â&#x20AC;? she said. If Ohio venture capital groups can sell some of their portfolio companies for big bucks, it would go a
RIVER RUNS LOW Venture capital investing fell dramatically during the first quarter of 2013, and thereâ&#x20AC;&#x2122;s little reason to believe it will turn around soon, as many local venture capital firms are out of cash. The chart below shows the amount of money invested in Northeast Ohio startups over the past five quarters. The $11 million raised in the first quarter is the lowest quarterly total since early 2009.
Quarter
Dollars invested
Q1, 2013
$11 million
Q4, 2012
$44 million
Q3, 2012
$73 million
Q2, 2012
$40 million
Q1, 2012
$55 million
SOURCE: JUMPSTART
long way toward solving the problem, several people said. Clevelandâ&#x20AC;&#x2122;s Mutual Capital Partners LLC did just that when one of its companies, OrthoHelix Surgical Designs Inc. of Medina, was sold to another orthopedic device maker, Tornier N.V., for $135 million last October. Since then, Mutual Capital has closed a second fund and invested in Cleveland HeartLab. Other promising venture-backed companies include mobile work force software developer TOA Technologies of Beachwood, which grew its sales to $41 million in 2012, up from $20 million the prior year, and Akebia Therapeutics, a Cincinnatiarea drug developer that just raised $41 million in venture capital, one of the biggest venture rounds in that regionâ&#x20AC;&#x2122;s history. But local economic development groups arenâ&#x20AC;&#x2122;t waiting around for the market to fix the problem. Both JumpStart and BioEnterprise are trying to connect local entrepreneurs with other sources of capital, such as disease foundations, the U.S. Department of Defense and the growing number of corporations that have started their own venture capital funds.
No time to sit still The shrinking pool of venture capital has pushed the Fund for Our Economic Future, a coalition of local foundations, to focus more on finding other ways to create jobs through innovation, said Fund president Brad Whitehead. For instance, today, June 10, the Fund for Our Economic Future is expected to vote on whether to give a six-figure grant to Magnetâ&#x20AC;&#x2122;s PRISM program, which is designed to help existing manufacturers create new products and new streams of revenue. The Fund also is studying Cincinnatiâ&#x20AC;&#x2122;s Cintrifuse initiative, which has raised money from that regionâ&#x20AC;&#x2122;s business community to create programs for startups as well as a fund that will invest in local and national venture capital firms. Are more economic development programs the answer? Mr. Whitehead said the region canâ&#x20AC;&#x2122;t afford to wait to see if local venture capital firms can sell portfolio companies and raise more money. He called the growth of high-tech entrepreneurship in Northeast Ohio â&#x20AC;&#x153;one of the greatest success stories of our region over the past decade.â&#x20AC;? That momentum must continue, he said. â&#x20AC;&#x153;We simply have to find ways to keep fueling the kind of growth â&#x20AC;Ś that weâ&#x20AC;&#x2122;ve been seeing,â&#x20AC;? Mr. Whitehead said. â&#x2013;
20130610-NEWS--25-NAT-CCI-CL_--
6/7/2013
2:10 PM
Page 1
JUNE 10 - 16, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
25
Talan: Suggestions have led to promotions, lateral assignments continued from PAGE 3
The conversations help management see how small problems can affect the workday, or how small gestures such as a burrito day can bring people together, Ms. Oates said. (Burrito day, in case you were wondering, is just what it sounds like: The president of the company asks everyone for their burrito orders and has them delivered. Ms. Oates said employees never know when it will be, and it’s a nice way to build morale.) Ms. Rhubart said when she was looking for a more engaged way to reach employees than a survey, Ms. Oates mentioned that employees used to meet with the CEO at a previous job. Ms. Rhubart loved the idea and said it was a good fit with Talan’s culture. The meetings are a good example of Talan’s culture of empowerment and participation, Mr. Peplin said. People were more reserved at the initial meetings, but by the second one, everyone had jumped in. Mr. Peplin said management wrote down all the employees’ comments, without names, and switched to even more anonymous sticky notes at the most recent set of meetings. It was a positive process overall, he said. The roundtables have a ripple effect, Ms. Rhubart said. The management team has strengthened, too, because it can factor employee comments directly into decisions. Matt Dierker, vice president at Centric Consulting’s Cleveland office, said such leadership-employee meetings are becoming increasingly common. Gone are the days of top-down management as the ideal, he said, adding that it’s a bit “arrogant and antiquated” to assume that management has all the answers. Mr. Dierker said these types of unscripted meetings work best in companies with a transparent culture, and they can be “highly effective” in improving communications and collaboration. The most successful programs will make an effort to involve all areas of the company, to share information from the smallgroup meetings with the rest of the employees, and to ask for advice on making the program even better. It’s also important that leaders address all the concerns that are brought up, even if they cannot fix the problem, he said.
“(It’s) arrogant and antiquated (to assume management has all the answers).”
for customers up front, rather than starting a project and filling in information as they went along. He said Talan adjusted its process a bit, slowing down the informationgathering phase, keeping salespeople involved in the process longer and making sure orders from customers are as thorough as can be before they reach the plant floor.
– Matt Dierker, vice president, Centric Consulting
Culture club
which will help identify skill gaps and show employees the skills they need to move to the next level. The standards will help formalize the training process. The project launch concerns weren’t a surprise to management,
The meetings have led to some lateral reassignments for employees, as well as some promotions, Mr. Peplin said. The roundtables are made up of representatives from different departments, and the groups of eight to 10 employees are different each
WHAT THEY’RE SAYING ABOUT THE CEO ROUNDTABLES “There’s no question that it’s improved the culture.”
“Everybody can say anything they want.”
– Steve Peplin, CEO, Talan
– Nancy Oates, senior buyer, Talan
Presented by:
Premier Sponsor:
Co-Presented by:
Saluting the best of Northeast Ohio’s HR executives Ticket Information:
CrainsCleveland.com/HRLeaders
Boarding the training train Talan today, June 10, is about to start its fourth round of these meetings. In the year-and-a-half since the program was implemented, the company has addressed issues ranging from project launches to training. The company always has valued training, but Mr. Peplin said it was a “huge pleasant surprise” to see the strength of the desire for more training opportunities. “You want ambition and the desire to learn,” he said. Employees wanted opportunities to grow and to learn about the next job up, he said. In response, Talan began creating more training for employees, especially crosstraining opportunities, so employees could learn more about the different jobs for each machine. In addition, Ms. Rhubart said the company is in the process of implementing standards from the National Institute for Metalworking Skills for the press operators in the plant. Employees will be assessed once the standards are in place,
Mr. Peplin said, but hearing that they were affecting employees gave the company more incentive to fix the issues. Mr. Peplin said employees reported that they wanted more information about the new projects
time. All the employees take part in a meeting in each round. There also is a separate meeting of managers. The diversity allows for cross-pollination of ideas among people who don’t work together on a regular basis, Mr. Peplin said. “There’s no question that it’s improved the culture,” Mr. Peplin said. And that isn’t just a guess on his part. For the past three years, Talan has taken part in The Plain Dealer’s workplace survey, which generates reports for the company on measures such as career opportunities/training, work conditions, managers and benefits, Ms. Rhubart said. Mr. Peplin said the company’s overall score has gone up each year. ■
AWARDS GALA: Networking Sponsor:
August 13 InterContinental Hotel, Cleveland 5:30PM-8:30PM
Video Sponsor:
SPONSORSHIP & ADVERTISING OPPORTUNITIES: CONTACT: Nicole Mastrangelo nmastrangelo@crain.com In partnership with:
Ad close: 2]Ta Issue date: July 30
20130610-NEWS--26-NAT-CCI-CL_--
26
6/7/2013
2:18 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 10 - 16, 2013
Cleveland: 2007 sales tax increase proves crucial in big project continued from PAGE 1
edge of Lake Erie with a more than $350 million package of redevelopment projects, all accomplished with no new taxes and largely completed by spring 2016. Both men pledged to seek approval from their respective councils for authority to help finance projects that the other wants to accomplish. Mr. FitzGerald wants to build a hotel and parking garage on the Mall that will make the new convention center complex next door more attractive to meeting planners. Mr. Jackson wants to lay down the infrastructure that will allow his plan for lakefront development to move ahead. “There’s a feeling of partnership and a desire to accomplish things in town that I haven’t seen since the early ‘90s, when Gateway (the city’s sports complex) was being planned,” said one 30-year veteran of downtown development. Whether the plans can be realized in full and can happen on the ambitious timetable set by the two leaders will depend on continuing cooperation between city and county government. It also will hinge on their ability to turn their first-draft financial plan — so far just rough numbers plugged into cells on a “sources and uses of funds” spreadsheet — into cash. A key part of that financing package is $35 million that would come from the private sector. Joe Roman, president of the Greater Cleveland Partnership, the city’s chamber of commerce group, has offered the mayor and the county executive the business community’s support in raising that money. Ken Silliman, the mayor’s chief of staff, told Crain’s last week that those private contributions might be applied to naming right to various elements of the Public Square and Mall redevelopment. In separate conversations, the two political leaders, complimenting each other on their abilities to bring the plan together quickly, challenged the business communi-
ty to move “at the speed of government” to make good on the private capital needed to pull this plan off.
Thanks, Tim and Jimmy The idea that all these plans, some of which have been on a shelf since 2011, could be wrapped together and completed relatively quickly arose two months ago. At that time, the county and its construction consultant were going over the accounts of the convention center, which is set to open its doors this Friday, June 14. With most of the bills paid, it was clear that construction of the convention center and the Global Center for Health Innovation (formerly known as the medical mart) would come in below the $465 million price tag set in 2007. That’s the year two former county commissioners — Tim Hagan and the now-disgraced Jimmy Dimora — approved without a public vote a quarterpoint sales tax increase to cover the project’s cost. Keeping those costs in check, plus an improving economy that produced more sales tax revenue than originally expected, had created a surplus that Mr. FitzGerald’s team realized could be put to use on related development. Over the life of the sales tax, the county is estimating that unencumbered sales tax revenue at $93 million. Mayor Jackson said last week the convention center project “would not have happened without commissioners Hagan and Dimora and their willingness to support an unvoted tax.” It’s safe to say the big plans of the two current leaders wouldn’t be happening, either, without the action of the two former commissioners, who took considerable heat for pushing through a tax increase at the start of a recession. (Their colleague, Peter Lawson Jones, voted against raising the sales tax.) “We caught all kinds of hell from everybody for that,” Mr. Hagan recalled last week. “I’m happy it all worked out; I think it’s going to be
great for the city.” Mr. Dimora, of course, is locked inside Gilmer Federal Correctional Institution in Glenville, W.Va., serving out a 28-year prison sentence for bribery and racketeering in office. Once the tax was in place, the commissioners struck a deal with MMPI Inc., a Chicago-based convention center developer and operator, that ensured the county wouldn’t be responsible for runaway cost overruns. That cost cap created the $93 million surplus. Now, the current leaders must turn their aspirations into a complex financial plan they can sell to the bond market, the federal government and local business and philanthropic leaders.
Grand visions Mr. FitzGerald described the plan last Wednesday, June 5, at a news conference on Mall C, across Lakeside Avenue from the main entrance of the new convention center. “For the first time, really, in the history of the city we are fulfilling the dream of connecting the lakefront to the life of the city,” Mr. FitzGerald said at a podium below a clear blue sky, with construction workers putting the final touches on the convention center complex behind him. “What you’re going to see as you come out of Tower City, you’re going to see a completely reconfigured and redesigned green space that is Public Square,” he said. “And as you head north, you’re not just going to see a totally activated and redone Mall. You’re also going to see not just a convention center. You’re going to see an absolutely state-of-the-art convention center hotel. “And as you continue north, there’s going to be a bridge that connects all these assets to the Rock Hall and the (Great Lakes) Science Center.” Next up to the podium, Mayor Jackson completed the picture.
“This gives us the ability to move Cleveland into the next phase,” Mayor Jackson said, referring to plans his administration already has proposed for the lakefront. “We have positioned Cleveland to do this, and this (joint financial plan) gives us the ability to do it.”
Big plans, big bucks The most expensive piece is a $260 million convention center hotel. It will replace the current county administration building north of the Global Center for Health Innovation and will be attached both to the health innovation center and to the convention center exhibit hall. Mr. FitzGerald said last week the 650-room hotel will require 2,800 construction workers and eventually would employ 450 to 500 people on a full-time basis. The key elements of the hotel financing plan are $83 million of the convention center sales tax surplus and a $121.6 million revenue bond backed by revenue from hotel operations. Both the city and the county would commit a portion of their bed tax revenue to the hotel financing as well. The other critical element is $47.6 million for a pedestrian bridge the city has proposed that would span railroad tracks and the Shoreway, landing in front of the Rock and Roll Hall of Fame and Museum and the Great Lakes Science Center. That linkage of the upland city to the lakefront is considered the catalyst for the city’s hope for waterfront development. The city, county and the Cleveland-Cuyahoga County Port Authority last week jointly applied for a $17.6 million federal transportation grant to help pay for the bridge and a connected parking garage that would be built adjacent to the Amtrak rail station north of the Shoreway. The city and the county each would contribute $10 million to that project. Mr. Silliman, the mayor’s chief of staff, said the Jackson administration will seek City Council approval
for an $18 million bond issue backed by casino tax revenue to pay for the city’s contributions to elements of the projects. The $35 million in private or philanthropic money would be used for improvements to Public Square, the Mall and the spaces in between those two key elements of what is called the Group Plan for downtown, referring to the 1903 downtown plan laid out by architect Daniel Burnham. Though the amount is large, it is not unprecedented. In Chicago, the private sector raised a substantial portion of the $475 million cost of that city’s Millennium Park, which opened in 2004. Some of that money was attracted by offering naming rights in exchange for contributions. So today, that park has a Chase Promenade and a Boeing Gallery.
Two guys, one goal The completeness of this plan and the speed with which it came together all comes back to the two men who lead two governments that haven’t always been on the same page. After last Wednesday’s announcement had wrapped up and television reporters had finished their separate interviews with Mr. FitzGerald and Mayor Jackson, the two men stood alone on the sidewalk on Lakeside Avenue talking, like two guys just hanging around. As different as they might be, a reporter suggested, the two appeared to have found a common ground in their commitment to the community — Cleveland and the Cuyahoga County suburbs. “Yeah,” said Mayor Jackson. “If you look, by the structure of government, we would be at odds all of the time. But we both have the same interest, so we’re trying to work that.” Added Mr. FitzGerald: “One thing the mayor and I have in common is we’re direct, we’re honest with each other and we agree on the general direction of things.” ■
REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Contact: Denise Donaldson E-mail: DDonaldson@crain.com AUCTION
Truck and Inventory Reduction
Auction Wednesday, June 12th – 10AM ON-SITE/ON-LINE
5351-B Naiman Parkway, Solon, Ohio 44139
Downsizing Cleveland company must reduce its inventory! Crane Trucks, Fork lift, Cherry Picker, Work Vans, Dually Work Truck, Scissor lifts and platforms, drill presses, table saw, gang boxes, tool boxes and parts sorters, power tools, hoppers, spools of cable and more!
SEE BUDDYBARTONAUCTIONS.COM FOR FULL INVENTORY
877-BID-ROSEN • (877) 243-7673 OR (330) 464-1375 www.bidrosen.com • www.buddyBartonauctions.com
List your Auction, Industrial, Commercial, Luxury Property or Retail Space Here!
Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card BUSINESS SERVICES Want to Buy or Sell a Business Free Seller Market Analysis See our listings at www.empirebusinesses.com 440-461-2202
FOR SALE
Crain’s
3 Used Copperloy Yard Ramps
Cleveland Business’
36 ft. – 96” O.D., 88” I.D. w/delivery, $6900 O.B.O.
classifieds will help
Used Forklifts
you fill that space.
U. can Afford. All Makes & Models. Scissorlifts, too!!
Contact Denise Donaldson at 216.522-1383
14 Single-sided Cantilever Racks, 48” Arms, 1 Lot Price, $3900
Stys
216-641-7897
Don't you wish your therapist knew something about running a business? Why not consult with a Ph.D. psychologist who has an MBA! The lives of business people are complicated ones and the pressures of home life and business stresses are difficult to manage. I have many years’ experience with employee problems and now add to my skill sets a good appreciation for the problems that managers and staff face in meeting today's business goals and maintaining a happy home lives. In business both capital and courage are needed. For personal problems, private insurance may cover the services, but for business issues like leadership, organizations’ problems and marketing, we would establish a consultation fee to meet your needs. Give me a call and let’s see if we can find a way to turn problems into achievements. I am ready to help. David I. Falk PhD HCMBA 3659 S. Green Road Suite 320 Beachwood, Ohio 44122 216-831-1014 Email davidfalkphd@gmail.com
20130610-NEWS--27-NAT-CCI-CL_--
6/7/2013
4:07 PM
JUNE 10 - 16, 2013
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
27
THEINSIDER
THEWEEK
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
JUNE 3 - 9
It’s ladies’ night — and day — at this station
The big story: Cuyahoga County Executive Ed FitzGerald and Cleveland Mayor Frank Jackson unveiled a multifaceted, $360 million development package that would create a convention center hotel and would pay for long-planned improvements to a swath of downtown that stretches from Public Square north to the lakefront. The city and the county will use expected increases in bed and casino taxes for some bond financing. The mayor and county executive also anticipate securing at least $30 million from the private and philanthropic sectors. See more, Page One
■ This next song goes out to the ladies. So does the song after that. Lake County soon will have a new FM radio station programmed to target women ages 25 and up. Next month Media One Group of Beachwood plans to launch Cougar 93.7. The station will play top 40 music — think Lady Gaga, Bon Jovi and Rihanna — and feature local talk show hosts who will keep the audience up to date on the latest entertainment news and trends. Media One Group understands that the word “cougar” has a risqué second meaning these days, according to a promotional video targeting advertisers. The video quotes Jeremy James, who will be co-host of “JJ and Cat in the Morning.” “Cougar 93.7 knows what turns women on — to radio!” he says. Part of Media One’s strategy is to give the station a heavily local flavor, said president James T. Embrescia. “Everything we’re going to be doing is going to be local, local, local,” he said, adding that the station has signed “a very long list of advertisers.” The station will employ about 16 people and will broadcast out of a storefront location at 9179 Mentor Ave. in Mentor, Mr. Embrescia said. Media One also is moving the broadcast studio for WREO-FM, 97.1, in Ashtabula to that location and changing its
Nothing ventured …: Forest City Enterprises Inc. and QIC, one of the largest institutional investment managers in Australia, agreed to form joint ventures to recapitalize and invest in a portfolio of eight of Forest City’s regional retail malls. Forest City will contribute its current ownership interest in each of the properties to the joint venture and QIC will acquire 49% of those interests for cash. The transaction values the eight properties at a total of $2.05 billion. Forest City expects to raise cash liquidity of $330 million, after transaction costs. New at the top: Diebold Inc. named a former executive with Hewlett-Packard Co. and Germany’s Siemens AG as its president and CEO. He’s Andy Mattes, 52, who also was named to the board of the maker of automated teller machines, bank security Mattes equipment and electronic voting machines. Mr. Mattes has more than 25 years of experience in the information technology and telecommunications sectors. Henry D.G. Wallace, who became Diebold’s executive chairman when Thomas Swidarski was relieved of the CEO’s job in late January, will assume the non-executive chairman role effective Aug. 15.
WHAT’S NEW
They have some nerve:
Neuros Medical Inc., a medical device developer in Willoughby, announced what it called “significant results” from a long-term pilot study of its Electrical Nerve Block technology, which uses quick bursts of electricity to eliminate all or most of the pain that remains after someone loses a limb. Neuros said results indicated that seven out of nine study subjects reported significant pain reduction (defined as 50% or greater) observed for up to 12 months of evaluation. The study demonstrated no safety issues over the treatment period.
Hire authority: Cleveland-area technology executives generally remain upbeat up about their companies’ business prospects and are hiring accordingly. That’s the finding of the latest Robert Half Technology IT Hiring Forecast and Local Trend Report, issued by Robert Half Technology. In the search firm’s latest survey, 86% of Cleveland-area chief information officers were optimistic about their companies’ prospects for growth in the third quarter, and 58% felt confident in their firms’ third-quarter investment in IT projects.
Kickstarter puts cash in Belt’s money belt ■ The popularity of “Rust Belt Chic: The Cleveland Anthology,” a book and website with long-form writing about Northeast Ohio, has spawned an online magazine that will launch late this summer. The magazine will be called Belt, and it’s made possible by a successful Kickstarter campaign that as of last Friday morning, June 7, had raised nearly $6,300, surpassing the $5,000 goal when the effort was launched May 15. The journalists, writers and thinkers behind Belt hope to reach $10,000 by this Friday, June 14; the money will be used to redesign the original “Rust Belt Chic” website, at RustBeltChic.com, and to pay writers and editors for their work. Belt managing editor Laura Putre, an alternative/community newspaper veteran, said the magazine earlier this year applied for a women-in-media grant from the McCormick Foundation, but was turned down. That led to consideration of other financing sources, of which Kickstarter emerged as the best option. The online magazine will be Clevelandfocused, at least at the start, though it also will include material about other regions of
It pays to get on board COMPANY: Buyers Products, Cleveland PRODUCT: Heavy-duty LED light bars Buyers Products says it offers new LED light bar models and other LED lighting options for a variety of uses. New heavy-duty LED light bars are available in three models and come standard with amber strobes. The 24inch model comes standard with eight modules, while the 49- and 60-inch models come standard with 14 modules. The modular design allows for simple strobe upgrades, and the light bars can be customized with blue, clear or red strobe heads, Buyers Products says. New dual-function strobe/traffic LED light bars are available in two models with 22 flash patterns. The 37-inch model comes with 24 amber LEDs, and the 47-inch model comes with 32 amber LEDS. The light bars feature a durable, anodized-aluminum housing and come with easy-to-install adjustable mounts, according to the company. A combination of halogen and LED options provide a complete selection of signal, utility, strobe and towing lights, according to Buyers Products. For information, visit www.Buyers Products.com.
Send information about new products to managing editor Scott Suttell at ssuttell@crain.com.
the industrial Midwest. Ms. Putre said it will produce long-form journalism, videos and commentary about economic and cultural issues in the Rust Belt. Belt also will include blog posts and guest contributors. This is a tough time for journalistic ventures of almost any sort, but Ms. Putre said Belt will be a for-profit venture that initially targets advertising, sponsorships and possibly iTunes subscriptions as its revenue streams. — Scott Suttell
The (road)show will go on in Cleveland ■ This week, GE Capital and Slate.com’s “Roadshow for Growth,” a national tour that focuses on the importance of middlemarket companies, will make a stop this Thursday, June 13, in the Cleveland area, where the conversation will focus on advanced manufacturing, said Ian Forrest, vice president of global marketing for GE Capital. GE Capital’s interest in middle-market companies, which Mr. Forrest defines as those with revenues of between $10 million and $1 billion a year, has Ohio roots. The company partnered with the Fisher College of Business at Ohio State University about two years ago to create the National Center for the Middle Market, Mr. Forrest said. GE Capital gives annual endowments to the center to help fund its research and events. It will wrap up its tour at the third National Middle Market Summit this October. The Cleveland stop will include visits with local manufacturers. — Rachel Abbey McCafferty
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
Deal takes off:
TransDigm Group Inc. acquired control of aircraft parts supplier Aerosonic Corp. of Clearwater, Fla., after successfully completing its previously announced cash tender offer of $7.75 for Aerosonic’s common stock. As of the expiration of the tender offer on June 4, more than 3.55 million shares were tendered and not withdrawn, representing 88.4% of the shares outstanding. TransDigm intends to exercise an option that will allow the Cleveland-based maker of aircraft parts to buy from Aerosonic additional shares that would result in TransDigm owning at least 90% of Aerosonic’s shares outstanding.
name from Star 97.1 to Mix 97.1. Media One owns 10 radio stations stretching from Northeast Ohio to western New York. However, they won’t own Cougar 93.7. The station, which will use the call letters WQGR, is owned by South Shore Broadcasting. — Chuck Soder
■ Talk about nice part-time work — if you’re well-connected enough to get it. Bloomberg reported that pay for directors at Standard & Poor’s 500 Index companies “rose to a record average of $251,000 last year, the sixth straight year of increased compensation since federal rules began requiring disclosure.” Boards have boosted pay for their members by about 15% since 2007. The average pay for directors “is almost six times the $42,700 average salary for privatesector workers holding down full-time jobs,” according to the story. Directors typically work 250 to 300 hours a year, according to executive search firm Korn/Ferry International. Stock grants pushed Eaton Corp. into the upper echelon of director pay, the story noted. Eaton “was among the top 10 for the first time because of more than $5 million to repay directors for taxes they owed related to unvested shares held at the time of the acquisition of Cooper Industries Plc,” Bloomberg reported. “The structure of the 2012 deal resulted in taxes for some directors and the Dublin-based manufacturer opted to reimburse the costs, according to the proxy.” An Eaton spokesman told Bloomberg that without those payments, director pay was in line with industry averages.
They object ■ That American Greetings Corp. go-private deal has some prominent opposition. The Wall Street Journal reported that American Greetings shareholder TowerView LLC of New York plans to vote against the deal, which values the Brooklyn-based greeting card company at $878 million. TowerView, which holds about 6.2% of the Class A stock outstanding, said in a May 30 Securities and Exchange Commission filing
that it believes “shareholders would do better if the contemplated transaction was not consummated.” In the filing, the investment fund asked Peter J. Solomon Co. to withdraw its “fairness opinion” about the deal and asked the two special committee members to change their recommendation of the proposed deal. The Weiss family in April agreed to pay $18.20 a share in cash to take American Greetings private. The Journal noted the company’s dual-class share structure means the Weiss family holds 51% of American Greetings’ voting power.
Not your parents’ campsite ■ The Indianapolis Star informs us of the growing popularity of “glamping” — that’s glamorous camping, if you’re not in the know — and a Stark County site earned a mention in the story. Glamping is taking place “not just at glitzy resorts with 5-star campside service, but at local campgrounds where RVs are getting bigger and fancier and campers are demanding Wi-Fi access.” And as the population gets older, there is going to be more and more glamping, says Joan Moyes Stoll, director of marketing at Clay’s Park Resort in North Lawrence, Ohio, which is in Stark County. The Star says her resort “features two custombuilt glamping tents. Each has an Amish-made queen-sized bed, bunk beds and a trundle bed and sits atop wood platforms overlooking a lake. That lake is stocked with fish.” Guests can rent golf carts to drive around the resort if they don’t want to do much walking. “There is a market out there for it,” Ms. Stoll said. “We just hosted a wedding here and the bride and groom stayed in the glamping tent.”
20130610-NEWS--28-NAT-CCI-CL_--
6/6/2013
2:45 PM
Page 1
Summer is in the air. Take full advantage. 2013
779
$
Mercedes-Benz CLS550 4MATIC®
Per month lease for 36 months. $5,473 due at signing*
Fleet and Military Offers Available.†
Mercedes-Benz
†
Available for qualified customers only.
of North Olmsted
Great Northern Blvd.
GREAT NORTHERN MALL
Clague Rd.
Stearns Rd.
Lorain Rd.
71
480 AIRPORT
On the North Olmsted Auto Mile 28450 Lorain Road
Mercedes-Benz of North Olmsted †
The #1 Volume Mercedes-Benz Dealer in the Central U.S. 28450 Lorain Road 888-450-8064 www.mbohio.com
Mercedes-Benz of North Olmsted is a part of The Collection Auto Group *Financing or leasing through Mercedes-Benz Financial is subject to tier one credit approval. 2013 CLS550 –36 months, 10,000 miles per year. 25¢ per mile thereafter. $5,473 due at signing (includes 1st payment $779, acq.fee $795 and $3,699 down payment). $250 doc fee, tax and title additional. No security deposit. In-stock units only or while supplies last. Lease offer expires 6/30/13. Available to qualified customers only. © Mercedes-Benz USA, LLC. †Based on MBUSA YTD regional sales results 5/31/13.
Ohio’s Largest Mercedes-Benz Certified Pre-Ownedd Center Featuring over 120 Pre-owned vehicles in stock for immediate delivery! NEW OR USED, THE RESULT IS STILL “UNCOMPROMISING.” • Certified Pre-owned offers luxury experience while providing value • Limited warranty up to 100,000 total miles
• Factory-backed warranty • Extended warranty up to 135,000 total miles • Carfax history report with every vehicle
• Rigorous vehicle inspection process • Roadside Assistance Program • Special financing
Mercedes-Benz Certified
2010 C300 4MATIC® Kelley Blue Book Value: $28,468
Interest rates as low as
Our price: $26,469
1.99
%
$2,000 savings! Heated Front Seats, AMG® Sportline, SIRIUS® Satellite Radio, Rain Sensor, Rear Deck Spoiler
for 66 months‡ 7 Available at Similiar Savings
*For qualified customers only.
©2013 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost.
Experience the Porsche whose improvements turn wind into adrenaline. Experience the 2013 Boxster. 599
$
/MO
24 MTHS
$1,494 due at signing Excludes tax, title and doc fee. No security deposit required.*
Porsche of North Olmsted 28400 Lorain Road North Olmsted, Ohio 44070 888-416-6642 Open 24/7 at: www.clevelandporsche.com
Porsche of North Olmsted is a part of The Collection Auto Group $599 per month for 24 months at 5,000 miles per year, .30¢ per mile after 10,000 miles, $1,494 due at signing (First payment $599, acq. fee $895 and $0 cash down). Tax, title and doc fee additional. Payment or upfront fees do not include sales or county tax. Financing is subject to credit approval. Stock# PD114369. MSRP $56,470. Security deposit waived. Offer good through 6/30/13. ©2013 Porsche Cars North America, Inc. ©2013 Porsche Cars North America, Inc.