Crain's Cleveland Business

20121015-NEWS--1-NAT-CCI-CL_--

10/12/2012

1:47 PM

Page 1

$2.00/OCTOBER 15 - 21, 2012

VOL. 33, NO. 40

Tanglewood Golf Course eyes escape from rough

Industrial companies prioritize R&D outlay

New leadership says it can move past legal, ownership troubles

Profits being invested in innovation efforts

By GINGER CHRIST gchrist@crain.com

By DAN SHINGLER dshingler@crain.com

It’s a bit like shouting “Tiger’s back!” after a couple of good rounds, but Tanglewood Golf Course might finally be out of the rough.

If it is — and there are still hazards to be avoided — the course’s owners likely would get a financial boost, as would the owners of the more than 500 homes and condominiums that surround the course in the Tanglewood Lake Community.

“They used to say, ‘The lake is worth $25,000 and the golf course is worth $15,000,’” in terms of either feature’s effect on surrounding property values, said Mark Tiefel, who has lived in the Bainbridge Township development since he Tiefel was a teenager and now is a co-owner of the golf course he grew up playing.

Lately, that $15,000 bonus for lots next to the fairways has looked like it could be in jeopardy. Both legal and operational issues — from poor greens to fights over ownership — have plagued the course in recent years. Some have been addressed, while others are still in the courts — including whether the course will be allowed to offer public play beyond next February — but Mr. Tiefel said he is aware of them all and confident they can be addressed.

The once private and prestigious course has had more dramatic ups and downs over the years than Phil Mickelson. In the 1980s and ’90s, it was a hot and sometimes toughto-get ticket, hosting major league sports stars and celebrities among its private members. But players at more blue-blooded area golf clubs said it also was a good place to see a fight

PHOTO PROVIDED

NO CASH STASH, BUT A STORY TO TELL Akron General invests in docs, wellness efforts in attempt to climb out of shadow of large neighbor

By TIMOTHY MAGAW tmagaw@crain.com

H

aving had four different CEOs over the last four years, luke- Stover warm to nonexistent positive operating margins and a competitor that’s more than doubled in size over the last decade, Akron General Health System by all accounts has a tough haul ahead if it plans to stay in the game.

“Are we flush? No, we’re not the Cleveland Clinic,” said Dr. Thomas “Tim” Stover, a nearly 20-year veteran of the system who stepped into the CEO role after Vince McCorkle unexpectedly resigned earlier this year due to medical concerns after less than two years on the job.

“We’re not a bank, and we’re not supposed to save money,” See STORY Page 35

“Everybody has competition, and you’ve got to get your story out. ...

There are ... lots of different audiences that we need to be speaking to.”

– Mark Lerner, board chairman, Akron General Health System

Lincoln Electric this year hired the largest class of trainees in the company’s history.

And it wasn’t close. The 50-student class was more than double the Euclid-based welding equipment maker’s typical 20-person class size.

That’s because the company wants to boost its research and development efforts, said John Stropki, Lincoln Electric’s chairman and CEO. And the best way to do that is through hiring.

“R&D spending is really people,” Mr. Stropki said.

Lincoln Electric is one of a number of area manufacturers deciding now is the time to ramp up R&D efforts.

Companies are starting to see sales growth and are looking to reinvest those profits into innovation, representatives say.

“We saw the budgets starting to open up last year. Companies were starting to work on next-generation products,” said Matt Hlavin, president of Thogus Products Co. in Avon Lake. “This year, it’s just going crazy.”

And Mr. Hlavin has been along for the ride.

Since the start of 2011, he has launched two sister companies to See R&D Page 37

INSIDE Browns join radio rights party The Cleveland Browns have sent out requests for proposals for the team’s flagship radio rights.

PAGE 3 PLUS: At first glance, investors aren’t quite convinced that the Weiss family’s go-private offer for American Greetings Corp. will end in a signed deal. PAGE 3

0

NEWSPAPER

74470 83781

7

40

See ROUGH Page 14

Meet the CFO class of 2012 after page 20

20121015-NEWS--2-NAT-CCI-CL_--

10/12/2012

2:16 PM

Page 1

20121015-NEWS--3-NAT-CCI-CL_--

10/12/2012

4:12 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

3

INSIGHT

Offer fails to lift American Greetings stock they believe the Weiss family will be able to line up the money it needs to complete the deal. board described $17.18 a According to statistics share as “a compelling from Yahoo! Finance, the price,” but also noted that takeover value — or sothey had yet to secure the called “enterprise value” debt financing they would — of American Greetings need to make the transac- Zev Weiss as of late last week was tion happen. And it appears the amount of debt they’ll need to nearly $754 million. That figure reflects the $536 million market value line up will be considerable.

However, investment bankers and of American Greetings’ stock as of a capital markets insider indicated last Wednesday, Oct. 10, plus debt

Observers confident in family’s ability to line up financing

By MARK DODOSH mdodosh@crain.com

It seems investors aren’t 100% convinced as yet that the offer by the Weiss family to take American Greetings Corp. private is going to result in a done deal — though at least one large shareholder has used the offer as an opportunity to load up on more stock.

In the two weeks after the Weiss family approached the American Greetings board with its offer of $17.18 a share for the Class A common stock that it doesn’t already own in the company, shares of American Greetings continued to trade below the $17 mark. It finally exceeded $17 late last Wednesday, Oct. 10.

Members of the Weiss family in a Sept. 25 letter to the company’s

THE WEEK IN QUOTES

Proposal asks bidding stations to expand ancillary content

— Matt Hlavin, president, Thogus Products Co. in Avon Lake. Page One

By JOEL HAMMOND jmhammond@crain.com

“The golf course is absolutely critical.

The property values are substantially higher here because of the golf course.”

“No matter how trivial or boring something might seem, if you have an opportunity to take something on that the company needs help with, take it on. It will demonstrate your ability.”

— David Adante, CFO, The Davey Tree Expert Co. and recipient of the Crain’s CFO of the Year Lifetime Achievement Award. Page C-3

“What is truly remarkable about Michael ... is what will never be read about in an earnings statement, discussed in a board meeting, or explained at the annual shareholder’s meeting.”

— CFO of the Year nomination for Chart Industries Inc.’s Michael F. Biehl. C-2

See OFFER Page 18

Browns next to explore market for radio rights

“We saw the budgets starting to open up last year. Companies were starting to work on next-generation products. This year, it’s just going crazy.”

— Pete Avrea, secretary, The Tanglewood Lake Association.

Page One

of $280 million, less cash of almost $62 million.

Unknown in the Weiss family’s go-private move is how much equity lenders would expect prospective buyers to put in the deal, and what the wealth is of the people who would need to come up with that equity.

The document CEO Zev Weiss filed Sept. 26 with the Securities and Exchange Commission to notify regulators about the family’s intent to buy the company sheds little light on the

I’ll be able to be part of the leadership here rather than manage a local office.”

Lee Hooper, currently Osborn president and CEO, will retain the CEO title as Mr. Hribar, 52, assumes the president’s role.

Mr. Hooper said, “The addition of (Mr. Hribar) will open new doors for Osborn. He will help mentor the firm’s next generation of younger leaders and bring a fresh perspective to growing the firm. This bold commitment to the longevity and growth of Osborn is another step in the strategic refocusing and rebranding that Osborn has been taking since 2008.” Mr. Hooper said Mr. Hribar’s background in business development will be particularly valuable for Osborn.

Osborn is employee-owned, with more than 40 shareholders among its staff of 70. Messrs. Hribar and Hooper acknowledged Mr. Hribar purchased a

All signs are pointing to Clear Channel Communications retaining the rights to broadcast Cleveland Indians games on WTAM-AM 1100.

But it appears the company will have to fight to keep another of its signature properties, the Cleveland Browns, after this season.

The Browns, whose radio contract is set to expire in the spring, late last week circulated requests for proposals to “interested parties” for a new radio deal.

The RFP says the Browns, in addition to game broadcasts, are seeking their radio partner — WTAM or either of Cleveland’s two sports radio stations, WKNR-AM 850, better known as ESPN Cleveland, or WKRK-FM 92.3, CBS Radio’s The Fan — to expand upon the 600 hours of “shoulder programming” the team already produces.

That content includes the team’s year-old “Cleveland Browns Daily” radio show, which airs on WKNR every weeknight; pregame and postgame shows; and other ancillary programming.

“More content is good for us, and good for the brand,” said Jim Ross, the Browns’ senior vice president of business development. “It gives us more inventory and more to sell (to advertisers) potentially.”

The Browns have called WTAM, and WMMS-FM 100.7, which simulcasts the Browns’ games, home since 2002. One industry source told Crain’s Cleveland Business that Clear Channel is “the best fit. … Only big money can change things, and that may not even be enough because of all the stations Clear Channel has under one roof.”

Mr. Ross said the team is happy with Clear Channel’s performance, but exploring what others might offer only makes sense.

See OSBORN Page 8

See BROWNS Page 15

JASON MILLER

Gary Hribar has been the managing principal of URS Corp.’s Cleveland operations since 2004.

CONSTRUCTION VET TAKES NEW OWNERSHIP Longtime leader of URS Corp.’s Cleveland office moves to Osborn, where he seizes opportunity at employee-owned firm

By STAN BULLARD sbullard@crain.com

O

sborn Engineering, a bedrock firm in Northeast Ohio’s engineering and architecture industry with a history dating back to 1892, and Gary Hribar, the low-key but high-profile managing principal of URS Corp.’s Cleveland-based northern Ohio operations, are setting off a ripple through the region’s construction service businesses.

Mr. Hribar, who has run San Franciscobased URS’ office here since 2004, will join the smaller, locally-based firm as president and a shareholder, or partowner, on Oct. 29.

In an interview, Mr. Hribar said of the new post, “This is intriguing for me.

This is an opportunity to participate as an owner and lead the company. URS is a great company. It is also a large public company with 10,000 employees.

20121015-NEWS--4-NAT-CCI-CL_--

4

10/12/2012

3:57 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

PUBLISHER/EDITORIAL DIRECTOR:

Brian D. Tucker (btucker@crain.com) EDITOR:

Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:

Scott Suttell (ssuttell@crain.com)

OPINION

Yes on 107

I

t’s abundantly clear that cities with welleducated work forces have the best chance to thrive in an increasingly technology-driven economy. Also clear: The city of Cleveland largely has failed in this regard.

But that can change. It won’t be easy, and it will require huge efforts from school administrators, teachers, business people and, most of all, the students themselves. The School Transformation Plan pushed by Cleveland Mayor Frank Jackson, who oversees the Cleveland Metropolitan School District, and schools CEO Eric Gordon, represents the best chance in a long time to turn the district into what the entire region needs — a modern, more efficient educator of 40,000 children.

To fund the plan, Cleveland voters on Nov. 6 are being asked to approve a four-year levy, Issue 107.

We heartily encourage a “yes” vote on the measure.

The reform plan has many positives. These include the potential for longer school days; the implementation of a pay structure that rewards teachers for excellent performance; and the creation of a “Transformation Alliance” — a watchdog group including parents, educators, business people and civic leaders — to evaluate charter schools based on common performance standards. You can find more details about the plan at www.RightPlanRightNow.com.

The plan is the result of an extraordinary amount of cooperation both in town, between the school district and the teachers union, and downstate, where Gov. John Kasich helped facilitate legislative measures needed to make reforms possible. Voters often say they want more bipartisan efforts from their government. This plan is an excellent example of just that.

Also encouraging is the way Cleveland’s business community has rallied behind the levy. For instance, the Cleveland Foundation made a $200,000 grant to support the campaign, and the campaign coordinating committee has a high level of participation from business leaders.

The levy is a big one: 15 mills. Passage of the tax would provide up to $77 million more a year for a district with an operating budget of $670 million — and a $65 million budget deficit. (In another of the reform plan’s virtues, high-performing charter schools that partner with the district also would receive a total of $5.5 million per year.)

We recognize these are not easy economic times for a tax increase. District officials say the owner of an average-priced home in the city — $64,000 — would pay $294 more per year in taxes, which is not an insubstantial sum for many residents.

But a good Plain Dealer analysis last week pointed out that Cleveland residents at present pay just more than 2% of their income toward the schools, well below virtually every other community in the region. This is a good opportunity for voters to step up and declare that Cleveland’s schools and its children are a vital resource that deserve a substantial new investment.

FROM THE PUBLISHER

A goodbye to an unforgettable golfer

H

And, man, the guy could flat out play. Nigel is was a familiar line, and it was was a well-known amateur competitor in as regularly anticipated on the Yorkshire, and in recent years — even first tee as his wicked grin: “I’ll after playing so very little during any gladly offer you a discount off given year — could go out and play comour bet if you’d like to just pay me now.” petitively “off five,” his handicap. Just a And there was that thick hand — part few weeks ago, we played what would be of an immensely powerful golf swing our last round together, in Scotland, and even in his irregular forays onto the I finally was able to win a few course — palm up. And that sly pounds from my pal. smile … one I’ll never forget.

BRIAN “Don’t spend that just yet,” The smile belonged to a very TUCKER he said with a grin. “I’ll be special friend, one Nigel Robert getting it back in short order.”

Algernon Denham, who at 63 And I never doubted it. left this world after dying in his In fact, he was always a key bed at Spinalonga, his home in factor in the success of the Halifax, England. He leaves a British side in our tournaments. hole in my life that will never be Every member of the American filled. team laughed when Nigel offered I first met Nigel at a golf tourthat first-tee buyout from the nament in Scotland. I had been side bet, and more often than not wished asked to join a group of Yanks and Brits they had taken him up on his offer. that had been competing back and forth I’m doubly glad that my friendship across the pond since 1992. Nigel was with Nigel extends to his son, Craig, who quiet at times, boisterous at others, but came to America on a golf scholarship, always witty, interesting and just plain fun.

then stayed, and now resides with his family in Princeton, N.J.. That apple didn’t fall far from the tree, especially when it comes to skill on the golf course.

A year or so ago, Nigel, Craig and I met here in America for a very special golf trip, arranged by an ever-so-gracious friend who’s a member at the famed Cypress Point Golf Club. We were to play two rounds at Cypress and stay overnight in the sleeping rooms in the clubhouse. It was all quiet as we finished dinner and went into the club’s library.

While Craig and I perused the various golf books, Nigel called us over.

There on the table, in a book on the club’s history, Nigel had found a photo of his father, Eric, then president of the Yorkshire Union of Golf Clubs, posed behind the Cypress clubhouse with England’s Walker Cup team. The next day, I photographed Nigel and Craig at the same spot.

It was a moment I’ll never forget.

Goodbye, dear friend.

■

THE BIG ISSUE Do you support the idea of turning the Ohio Turnpike over to a private operator?

WARREN SPEER

KEVIN LEAMER

AMBER BURGESS

JOSHUA FREEMAN

Lakewood

Homerville

Maple Heights

Cleveland

I don’t like it. The turnpike is a self-sufficient operation as it is.

The money it takes in goes into maintaining it. If it goes private, the tolls will go up. I saw that in Chicago; the tolls went from $1 to $3. I think we should not privatize it.

I’m all for privatizing things. In most cases, I think small business can operate anything more efficiently than government. I’ve been a small business person for 20 years. It’s about being lean and making a profit.

Maybe we could do it on a halfand-half basis. It needs checks and balances, so maybe part of it should be private. But it needs to be set up so it provides some opportunity and benefit.

I think it’s a bad idea. People will still need to get around.

It’s a good source of money for the state as it is.

➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com.

20121015-NEWS--5-NAT-CCI-CL_--

10/12/2012

1:48 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

Relationship leads MAI to buy local hedge fund MICHELLE PARK mpark@crain.com

First, Rick Buoncore and Bob Clutterbuck worked together. Then, they formed their own firms. And now, they’re combining the firms they lead and working together again.

Cleveland-based wealth and investment management firm MAI Wealth Advisors LLC on Oct. 1 acquired a majority stake in CF Managers LLC, the parent company of hedge fund Clutterbuck Capital Management LLC, the two firms announced last week.

Terms of the deal were not disclosed.

The transaction combines MAI’s 70 employees with Clutterbuck’s four and creates a firm that manages more than $2.71 billion in assets.

September 2012

Clutterbuck Capital — which invests in distressed securities and special situation investments — is negotiating a lease in downtown Cleveland’s IMG Center, where MAI operates.

The deal started as a casual chat over lunch, said Messrs. Buoncore and Clutterbuck, who worked together at KeyCorp from 1998 to 2002 and have been investors on a personal basis in each other’s funds for years.

“Maybe it makes sense to put this together,” Mr. Buoncore recalled them discussing. “So, that’s what we did.”

The combination makes sense, in part, because MAI Wealth Advisors and Cleveland-based Clutterbuck Capital share a philosophy that stresses preservation of capital, Mr. Buoncore said. Clutterbuck Capital,

August 2012

Buoncore

Clutterbuck

he added, has a track record of protecting and growing assets despite difficult market conditions.

Plus, given recent financial reform — namely the Dodd-Frank Wall Street Reform and Consumer Protection Act — it has become harder for firms to stay abreast of compliance mandates, Mr. Buoncore said.

He remains managing partner of MAI.

July 2012

July 2012

“I think it’s not unlikely that you’ll see more of this going forward,” Mr. Buoncore said of industry consolidation. “I think firms will look to get together to get economies of scale.”

MAI’s bigger infrastructure should help Clutterbuck Capital expand its distribution to investors and also will afford Mr. Clutterbuck and his team in-house directors of operations, compliance and marketing that they didn’t have before, said Mr. Clutterbuck, still managing partner of Clutterbuck Capital.

“MAI has a larger, more sophisticated marketing presence,” he noted.

Clutterbuck Capital represents another offering MAI can provide its clients that’s different and proprietary, Mr. Buoncore noted.

■

May 2012

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: Joel Hammond (jmhammond@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 Ginger Christ (gchrist@crain.com) Manufacturing, marketing and retailing Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams

$1.7 Billion

$189 Million

$763 Million

$87 Million

$158 Million

Follow-on Offering Common Stock

Follow-on Offering Common Stock

Follow-on Offering Common Stock

Initial Public Offering Common Stock

Follow-on Offering Common Stock

Joint Bookrunner

Joint Bookrunner

Joint Bookrunner

Co-Manager

Co-Manager

Marketing director: Lori Yannucci Grim (lgrim@crain.com) Marketing/Events manager: Christian Hendricks (chendricks@crain.com) Assistant Events Manager: Jessica Snyder (jdsnyder@crain.com) Advertising sales manager: 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) Lindsey Nordloh (lnordloh@crain.com) Sales and marketing assistant: Michelle Sustar (msustar@crain.com)

May 2012

April 2012

March 2012

February 2012

February 2012

Digital strategy and development manager: Stephen Herron (sherron@crain.com)

a portfolio company of

$93 Million

$293 Million

Initial Public Offering Common Stock

Initial Public Offering Common Stock

Co-Manager

Joint Bookrunner

$690 Million Initial Public Offering Common Stock Co-Manager

Office coordinator: Toni Coleman (tcoleman@crain.com)

$306 Million

$75 Million

Follow-on Offering Common Stock

Follow-on Offering Common Stock

Lead Manager

Sole Bookrunner

Delivering results We know that successful, long-term business relationships depend upon delivering results for our clients.

At KeyBanc Capital Markets,® more than 500 professionals leverage extensive industry knowledge, equity and debt capital markets expertise, and a leading merger and acquisition advisory practice to deliver strategic solutions that help our clients capitalize on opportunities.

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 Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996)

To learn more visit key.com/ecm.

Offices in Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Houston, Los Angeles, New York, San Francisco and Seattle

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, 48207-2912, or email to customerservice@crainscleveland.com, or call 877-812-1588 (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

KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/ FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. Key.com is a federally registered service mark of KeyCorp. ©2012 KeyCorp ADL5386

5

20121015-NEWS--6-NAT-CCI-CL_--

6

10/12/2012

1:52 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Reimer, Arnovitz, Chernek and Jeffrey Co. LPA, a Twinsburg law firm, will increase its space by nearly 30% by moving to this Solon office building.

PHOTO PROVIDED

Twinsburg law firm fits in at Solon site Christ Child Society of Cleveland is very pleased to honor

Robert C. Smith & Susan Ferraro Smith 2012 Persons of the Year at our 61st annual charity event The Starlight Ball • Renaissance Cleveland Hotel • Dec. 1, 2012

Geis brothers bought, redoing former fitness center on speculation

By STAN BULLARD sbullard@crain.com

For more information contact:

Christ Child Society of Cleveland Parmadale • 6753 State Road • Parma, OH 44134 440-843-1632 christchildcleveland@yahoo.com 501(c)(3) Organization

Twinsburg law firm Reimer, Arnovitz, Chernek & Jeffrey Co. LPA plans to move its 150-employee staff by mid-December to a one-time fitness center in Solon, a transition that will hike the size of the firm’s digs by nearly 30%.

That’s the word from Greg Geis, partner with brother Fred in the family-owned Geis Cos., which bought the building at 30455 Solon Road, Solon, last July on speculation so it could convert it to contemporary office use. It now is being transformed to a single-tenant office building.

“The outside is all done,” said Greg Geis, and workers are converting the interior to open-office designed

space for the law firm. Crews already cut huge openings into walls in the building to provide openings for windows as part of converting the gym to offices. They also installed new heating and cooling systems and electrical lines.

Half the building, empty since 2009, was condemned by the suburb’s building department and in a few months would have met the wrecking ball, Mr. Geis said.

However, landing the single tenant for the entire building — now dubbed by Geis the Paragon Office Environment — is not the firm’s only new office venture.

Busy brothers Through 323 Lakeside Place LLC, the Geis brothers acquired the Lakeside Place office building on West Lakeside Avenue out of receivership Sept. 27. The $3.6 million purchase of the building valued at upwards of $5 million for property tax purposes is the duo’s first venture in downtown Cleveland, a transition often considered a coming-of-age for property owners and developers.

In the case of Geis Cos. it’s not totally unfamiliar territory, as Fred Geis is undertaking multiple projects in MidTown Cleveland just east of downtown, including restoration of the fabled Agora, 3955 Euclid Ave. into offices for startup and techoriented firms.

All told, that’s a lot of office projects for a firm best known for constructing industrial buildings and developing industrial parks since its founding in 1967 by the brothers’ late father, Erwin Geis.

Greg Geis said the company increasingly has sought office projects as the ground-up industrial construction market languished in the economic downturn. Office projects were not much of a reach for the concern, Greg Geis maintained, as build-to-suit factories often include offices for headquarters or local management.

“We have a staff of 59 here,” Mr. Geis said. “Without the office work some would have to go home.”

Mr. Geis declined to discuss the firm’s other high-profile office venture. It recently received approval from the city of Cleveland for an option to lease land on the lakefront near Burke Lakefront Airport as a potential office development site.

The other strategy the firm has followed, besides Fred Geis’ highlypublicized ventures in MidTown, is to build throughout the country for clients it does work for here. Half its construction volume now is outside the region in multiple states.

Geis last month began building its first project in California, a

250,000-square-foot warehouse outside San Francisco for Thermo Fisher Scientific Inc. The California installation is the 14th property Geis has constructed for Waltham, Mass.-based Thermo Fisher since constructing a building in Oakwood Village for the diversified, science-focused instrument maker.

The Lakeside Place acquisition, although a distressed property fiscally, will not require as much a redo as the law firm’s new Solon offices. Mr. Geis said the dated, late 1980s-era lobbies of the structure will be updated. Constructed in the early 20th century as a textile factory, the structure was converted to offices in the late 1980s.

Lakeside Place does have vacancy, however. A total of 15,000 square feet in the 90,000-square-foot building is empty, according to Rico Pietro, a principal at Cresco, an Independence-based real estate brokerage.

The vacancy is in five separate suites, he said.

“This is just like Paragon was. The building needs vision,” Mr. Pietro said. “In the Solon case, it was clearly a case of taking lemons and making lemonade with Geis’s ability to create designs and drawings to help tenants see the possibilities.”

Project with muscle As for the Paragon building, Dennis Reimer, name partner of Reimer Arnovitz, refused to discuss the firm’s move or its practice. The company’s voicemail system describes it as a collections firm. The firm’s name also regularly appears as that of lender counsel on residential foreclosure cases filed regionwide.

Mr. Geis said Reimer Arnovitz has signed a long-term lease, but he declined to say how long, or disclose the rent.

Russell Rogers, an OstendorfMorris Co. broker, confirmed he represented Reimer Arnovitz in its lease at Paragon.

Neither Mr. Geis nor Mr. Pietro would say how much it will cost to convert the former fitness center to Reimer Arnovitz’s new offices.

However, it is clearly more than $250,000 because the project has qualified for the maximum incentive the city of Solon provides for property owners retrofitting older buildings in its Growth and Revitalization Incentive Program, according to Peggy Weil Dorfman, Solon economic development manager.

“This is exactly the type of project for which we designed GRIP,” Mrs. Dorfman said. “The city is excited about 150 additional jobs.”

Reimer Arnovitz has not requested an incentive package for moving its jobs to Solon, she said.

■

20121015-NEWS--7-NAT-CCI-CL_--

10/12/2012

3:57 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

7

Land reappraisal eases for commercial, industrial owners They now can avoid long review process during property value disputes

By JAY MILLER jmiller@crain.com

For the first time, owners of commercial and industrial real estate in Cuyahoga County will get the same treatment afforded residential property owners and have the opportunity to informally ask county taxing officials for a property reappraisal without going through the time-consuming board of revision process.

County fiscal officer Wade Steen said last Wednesday, Oct. 10, that once all the 2012 reappraisals are mailed to property owners, which should be completed this week, his office will set up meeting times so property owners can come in and talk to a staff appraiser about what the owners believe are overvalued properties.

Though overall property values declined modestly, there may be a lot of queries given news reports about sharp declines in specific properties.

However, several property owners weren’t sure they would take Mr. Steen up on his offer.

Overall, commercial and industrial property values in the county declined only 0.9% between 2011 and 2012. Industrial property, factories and warehouses dropped 5.1% while commercial buildings, office and apartment buildings that are the preponderance of the C&I category, dropped 0.2%. The county reappraised 35,593 commercial and industrial properties. “We’re doing a concerted public outreach that has never been done in the past,� Mr. Steen said. “We just want the values right.�

Property is reappraised every six years and though an interim reappraisal after three years. Adjustments due to sales can change values between full reappraisals.

Mr. Steen said he decided to offer this new first step because of a backlog at the board of revision.

Past poor management and a flawed reappraisal process means it can take a year or more to even get a hearing. Last July, the board of revision added evening hours to help reduce a backlog of 15,000 cases, some dating as far 2008. Property owners are expected to pay taxes

owed at the usual times despite appeals. “If this helps alleviate the backlog and provides a forum for the business community to have a dialogue (about property values), then that’s what we want to do,� he said.

Ups and downs Mr. Steen said he expects queries because decreases in property values were broadly expected and because of some well-publicized reductions in value.

Earlier this year, Crain’s Cleveland Business reported that the Plain Dealer printing plant in Brooklyn had its value cut $13 million, from $60 million to $47 million, or 21.7%.

The PD subsequently reported that the 200 Public Square Building, formerly the BP Building, and the Avenue at Tower City Center also received substantial appraisal cuts.

However, Mr. Steen noted, many communities saw commercial property values increase. The most obvious to him was Thistledown Race Track, which sold for $43 million after race track gambling legislation passed, increasing the value of the track.

Alleged errors in fee review land Progressive in lawsuit

By MICHELLE PARK mpark@crain.com

Progressive Casualty Insurance Co. has been sued in U.S. District Court in Cleveland on allegations that it used a fee-review product that is “riven with errors� in a fraudulent scheme to depress reimbursements for medical treatment provided to Progressive policyholders.

At the heart of the matter is the use by Mayfield Village-based Progressive of a product called Decision Point, which the plaintiffs claim is a “garbage in, garbage out� product — a fact they say is well known to Progressive and Mitchell International Inc., which licensed the fee review product to the insurer and also is named as a defendant.

The plaintiffs claim that Progressive saved millions of dollars through the “massive� scheme, and also that the proposed class of underpaid health care providers numbers in the thousands.

Dated Oct. 2 and filed on behalf of Physicians Diagnostic and Rehabilitation Center LLC, which the suit describes as an Ohio-based company, the proposed class action alleges that Progressive used Decision Point and the data behind it to improperly limit and exclude from coverage medical expenses incurred after a covered occurrence (such as a car crash) because those expenses exceeded a secret, predetermined percentile chosen by Progressive.

This is a breach of Progressive’s standard automobile insurance contracts, the suit claims, because the contract obligates Progressive to pay all “reasonable expenses incurred for necessary medical ‌ servicesâ€? and exclude only “unreasonableâ€? expenses. “Progressive does not pay reasonable expenses, upon reliance on

Decision Point,â€? the suit alleges, because the software simply compares a line-item charge billed to internal fee schedules embedded within the software. “Through the creation and use of Decision Point ‌ Progressive, Mitchell Medical and Ingenix (the company that licenses the data component of Decision Point) engaged in a fraudulent scheme to underreimburse healthcare providers [i.e., physicians, hospitals, clinics, etc.] for services rendered that were deemed covered and necessary and resulted in millions of dollars in damages to the class,â€? the suit says.

The plaintiffs also allege that Mitchell slanted Decision Point to support the scheme because if Decision Point wasn’t slanted as such, “Mitchell knew and discussed the fact that Progressive would not purchase the product and use it to make reimbursement determinations.� “When Progressive faces challenges to its ‘refusal,’ it routinely pays the amounts charged,� the lawsuit says. “In states where it has been the subject of litigation or state enforcement, Progressive and/or other insurers have stopped the use of Decision Point ‘fee review’ software altogether.�

A Progressive Corp. spokesman declined comment.

Plaintiffs’ lawyers also did not respond to requests for comment.

Four of the plaintiffs’ attorneys that sued Progressive also filed a similar suit on May 5, 2011, against Nationwide Mutual Insurance Co. on behalf of Back Doctors Ltd. That lawsuit alleges much the same.

According to court documents, an order of preliminary approval of class action settlement was entered July 30 in the Nationwide case. A hearing is set for Dec. 11. â–

Indeed, communities fall across a broad spectrum: the value of Cuyahoga Heights’ commercial and industrial real estate saw declines of 16.3% and 14.1%, respectively; North Randall’s tax base rose 22.1%; and values in Highland Hills rose 12.5%.

The county long has offered homeowners an informal appeal but until now commercial property owners had to go through a more formal process that starts at the board of revision. That route can entail hiring an attorney and an appraiser and can end up at the Ohio Board of Tax Appeals and sometimes in an appeal through a common pleas court.

That process often is adversarial, since local school boards, the principal recipients of property tax income, often protest attempts to reduce property values.

This new hearing only would be between the property owner and a county appraiser. Mr. Steen said property owners may bring financial information and tenant leasing information to make their case, the same kind of documentation they would bring to a board of revision.

While a decision won’t be made on the spot, the property owner will get a fairly quick response.

An unnessary extra step?

However, school boards still may challenge these reappraisals at the board of revision, and for many property owners appealing the board of revision decision to the Ohio tax appeals court is routine.

The often dogged challenging of reappraisals by school boards may keep property owners away from the process. “It sounds like an OK plan,� said James Breen, principal of Breen + Company, a real estate firm. “But the reality is that regardless of what your reappraisal number may be at this informal process, where is the incentive for the specific school board to cooperate with that?�

Mr. Breen manages about 2.5 million square feet of commercial property and is the owner of two downtown Cleveland buildings, the IMG and Lincoln buildings.

Robert Nieto, president of R.G. Nieto Co., which owns and manages strip shopping centers, said he’s willing to give this new process a chance, but he, too, is skeptical. “I’m all for (an informal hearing) procedure because we can always say no and carry it further to the board of revision,â€? he said. â–

AN ADVISOR WHO OFFERS FLEXIBLE

LENDING OPTIONS

TO FIT YOUR NEEDS AND YOUR FINANCIAL STRATEGY. ĹˆH 3ULPH)LUVW§ \HDU DGMXVWDEOH UDWH PRUWJDJH IURP 0HUULOO /\QFK +RPH /RDQV70 IHDWXUHV UDWHV DV ORZ DV 1.500%1, 1.599% APR $ 0HUULOO /\QFK )LQDQFLDO $GYLVRU FDQ RçHU \RX DFFHVV WR OHQGLQJ VROXWLRQV WR KHOS \RX JDLQ DGGLWLRQDO OLTXLGLW\ WR SD\ GRZQ SULQFLSDO PRUH VWUDWHJLFDOO\ RU WR XVH IRU \RXU RWKHU oQDQFLDO JRDOV Jon E. Lawrence &RPSOH[ 'LUHFWRUq*UHDWHU &OHYHODQG

%UHFNVYLOOH &KDJULQ )DOOV &OHYHODQG 0HQWRU 3HSSHU 3LNH :HVWODNH

1.500%, 1.599% APR with a 1% origination fee. The initial annual percentage rate (APR) may vary. The interest rate adjusts monthly based on the one-month LIBOR as published in The Wall Street Journal, plus a margin of 1.25%, and may increase. Rate and margin are current as of 10/2/12. Rate and margin are subject to application of standard underwriting criteria and may change without notice. For a $600,000 purchase of a primary residence, with a 20% down payment and a $480,000 mortgage, 120 monthly interest-only payments of $600 are followed by 180 monthly amortizing payments of $2,980, assuming interest rate remains constant throughout the adjustable term of the loan. Payments do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater. When deciding whether an adjustable-rate mortgage is right for your situation, you should consider the potential risk of rising rates and payments and such factors as how long you plan to own your home. This is an interest-only mortgage that allows you to pay only the interest on the money you borrow for a certain number of years. If you pay only the amount of interest that’s due, once the interest-only period ends, you still will owe the original amount you borrowed, and your monthly payment will increase—even if interest rates stay the same—because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest-only period. If you are considering an adjustable-rate mortgage, ask what your payments can be if interest rates increase. Visit our Web site at www.merrillhomeloans.com for more information about the risks of interest-only mortgages.

Merrill Lynch Home Loans™ residential mortgage programs are offered and funded by Bank of America, N.A., 4804 Deer Lake Drive East, Jacksonville, FL 32246-6484; toll-free telephone: (800) 854-7154.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, toll-free telephone: (800) 338-2814, Member, Securities Investor Protection Corporation (SIPC), does not make commitments for or fund loans.

Residential mortgage programs, options and property types are not available in all states and jurisdictions and are subject to change without notice. Loans are offered on properties in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Additional terms, conditions, restrictions and costs may apply. Bank of America Corporation, its subsidiaries and their employees may receive compensation for its products and services.

Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and member SIPC, and other subsidiaries of Bank of America Corporation (“BAC�). Banking products are provided by Bank of America, N.A., and affiliated banks, members FDIC and wholly owned subsidiaries of BAC. Investment products:

1

Are Not FDIC Insured Š 2012 Bank of America Corporation. All rights reserved.

AD-08-12-0117

Are Not Bank Guaranteed ART1Y0Y0-08-12

May Lose Value Code 439404PM-1012

20121015-NEWS--8-NAT-CCI-CL_--

8

10/12/2012

3:58 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Forest City cures Terminal Tower loan issue — by buying the loan

By STAN BULLARD sbullard@crain.com

Forest City Enterprises Inc., with its resources as a multimilliondollar corporation, took the direct avenue to cure a loan woe on its landmark Terminal Tower in downtown Cleveland.

The Cleveland-based mega developer, headquartered in the icon at 50 Public Square, paid off the $35 million loan with its own money.

The company snared a 29% discount on the mortgage to boot.

Forest City spokesman Jeff Linton last Thursday, Oct. 11 confirmed

the company had “bought the loan” with its own resources.

“We saw it strictly as a chance to de-lever and retire the debt on a quality asset at a discount,” Mr. Linton said. The move, he said, fits the strategic plan Forest City has followed of reducing its level of indebtedness through the recession and realty downturn.

In a securities filing, Forest City said that as of July 31, it had signed a binding agreement with the lender to purchase the mortgage for $25 million.

Cuyahoga County mortgage records show Terminal Tower SPE

LLC, the company Forest City used to hold the property, paid off the loan Sept. 27. The loan had matured April 1 and was assigned April 20 by Wells Fargo Bank, the loan’s trustee, to CIII Special Servicing, an Irving, Texas-based company that handles distressed debt for lenders.

Two CIII executives each did not return a call to discuss the loan workout.

If Forest City had not satisfied the mortgage, the lender might have initiated foreclosure proceedings on the building or sold the loan to another party.

Bob Pearson, a senior vice presi-

dent of Bellwether Enterprise Real Estate Capital LLC of Columbia, Md., said a special servicer would agree to a discounted loan payoff if it decides it can get as much from the current owner as it could by obtaining ownership of the property and reselling it in court proceedings.

Mr. Pearson, who works for Bellwether Enterprise’s Clevelandbased commercial unit, said he feels the discount in the Terminal Tower loan indicates “neither party took advantage of the other.” He said his unit specializing in resolving such loans has seen discounts range from 10% to 65%.

The owner of Tower at Erieview, 1301 E. Ninth St., negotiated a discounted loan payoff with one of its lenders to resolve a loan dispute that went into court foreclosure proceedings earlier this year.

Werner Minshall, owner of the tower and the attached Galleria through Erieview Land Co. LLC, called the Terminal Tower loan workout “good news for Cleveland.”

Mr. Minshall said the discounted loan payoff recognizes the new reality of the nation’s realty markets: Rents and values are lower than they were a few years ago.

■

Osborn: New executive offers management, national experience continued from PAGE 3

stake in Osborn to become a shareholder. They declined to disclose terms of the transaction.

Showing both his new role as an owner of Osborn and background at URS, which has about $10 billion in annual revenues, Mr. Hribar said his goal at Osborn will be to “add shareholder value.”

Ready to grow Mr. Hribar has headed URS’ offices since 2004, a period when the Cleveland office grew to about 230 employees from half that number, although part of the growth came from URS acquisitions of several firms nationally that had local offices.

About 30% of the work of URS’ Cleveland office is outside Northeast Ohio. Mr. Hribar’s new job at Osborn will allow him to pursue work without having to avoid treading on

the toes of executives at other URS offices.

And expansion is what Messrs.

Hribar and Hooper have in mind.

While Osborn has an international reputation as a designer and engineer for stadiums, ranging from the original Yankee Stadium and Cleveland’s former Municipal Stadium to a role at the new Cleveland Browns stadium and other buildings, it is based in Cleveland and has only one other office — in Akron.

Osborn plans to look for locations to expand geographically as well as in product offerings, the men said, though Mr. Hribar said it is too soon to describe specific targets.

Mr. Hribar said he helped the Cleveland office grow despite the recent downturn by diversifying its practice to include energy management and sustainability in design.

Mr. Hribar said he approached

Mr. Hooper about joining Osborn because the companies share many values and he knew Mr. Hooper sought to expand Osborn aggressively. Both firms function as engineering and architecture firms.

Both firms also regularly competed for work, and they have won roles in some of the region’s biggest projects. Both have roles building Horseshoe Casino Cleveland last year and construction of the Medical Mart and Cleveland Convention Center, two of the region’s largest construction projects in decades. Both also have done work for the Cleveland Clinic.

‘More surprises ahead’ Mr. Hooper, who became president and CEO of Osborn a year ago, has worked at Osborn for 37 years, typical of long tenures at the company. Mr. Hooper, 59, said he has no plans to retire but added Mr.

Hribar to add fresh perspective to how the company approaches the changing engineering business.

Osborn has several talented younger leaders, Mr. Hooper said, but most are in their 40s and need more management experience before being ready to lead it — something he looks to Mr. Hribar to help provide.

For his part, Mr. Hribar said he sees the stop at Osborn as the last in his career. He has spent the last 24 years at URS. Michael Burgess, a vice president and regional manager at URS, did not return three calls to discuss Mr. Hribar’s departure. URS’ New York public relations office also did not respond to two calls and an email.

Mr. Hribar said his URS departure was of his own choosing to join Osborn.

The shift is clearly a head-turner.

Jerry Hutchison, a business development manager in the Cleveland

office of Professional Service Industries Inc., a Chicago-based civil engineering firm, said he had not expected such a move by Mr. Hribar or Osborn but understands it.

Mr. Hutchison, a more than 40-year veteran in business development for engineering and defense companies, said he can see why Mr. Hribar exited URS and Osborn’s reasons for adding him in a key role.

Mr. Hooper “is an excellent transportation engineer, but Osborn can benefit from having someone else who is well-rounded in management,” Mr. Hutchison said. Osborn needs to add more of a national presence, he said, and Mr. Hribar was unlikely to rise beyond managing URS’s Cleveland office, Mr. Hutchison said.

“It’s a wonderful combination,” Mr. Hutchison said. “You can see more surprises ahead.”

■

20121015-NEWS--9-NAT-CCI-CL_--

10/10/2012

1:32 PM

Page 1

HAVING ACCESS TO CASH THAT ALLOWS YOUR BUSINESS TO KEEP FLOWING. SM

With Cash Flow Options from PNC, we can help you take advantage of everyday untapped opportunities. Like helping ensure access to credit. So you can be prepared for cash shortfalls, the effects of seasonality or taking advantage of the unexpected.

For uncovering opportunities to help improve your cash flow, visit pnc.com/cfo, stop by a branch or call 1-855-PNC-CFO5.

for the achiever in you

SM

All loans are subject to credit approval and may require automatic payment deduction from a PNC Bank Business Checking account. Origination and/or other fees may apply.

PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Cash Flow Options is a service mark of The PNC Financial Services Group, Inc. © 2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC

ACCELERATE RECEIVABLES IMPROVE PAYMENT PRACTICES INVEST EXCESS CASH LEVERAGE ONLINE TECHNOLOGY ENSURE ACCESS TO CREDIT

20121015-NEWS--10-NAT-CCI-CL_--

10

10/11/2012

1:02 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Francona’s pedigree: a free agency factor?

By JOEL HAMMOND jmhammond@crain.com

ANALYSIS

Terry Francona was introduced as the Cleveland Indians’ 42nd manager last Monday, and he brought with him a pedigree that few others — available or not — could: two World Series titles in Boston and a reputation for developing bright young players into stars, the Red Sox’ Dustin Pedroia and Jacoby Ellsbury chief among them.

But what Mr. Francona’s Red Sox teams also had were hefty infusions of free-agent talent, backed by a payroll propped by a money tree known as Fenway Park and a market that has little of the trouble Cleveland has faced.

Mr. Francona strangely feigned ignorance at his introductory news conference about baseball’s economics, which hurt small-market teams such as the Indians, whose $64 million 2012 payroll was nearly tripled by Boston’s $175 million outlay. The Indians, therefore, are always at a disadvantage in supplementing, as they call it, their “nucleus� of young players with help from the outside.

The team’s new manager repeatedly said he’s “up for a challenge,�

and touted his relationships with Indians president Mark Shapiro — for whom Mr. Francona worked in 2001 as a special assistant — and general manager Chris Antonetti, with whom Mr. Francona developed a friendship in his one season in Cleveland, as reasons he’s confident in being able to win here.

But those inter-office relationships only go so far. The $64 million question remains whether Mr. Francona’s presence and pedigree can help the Indians land free agents at a time when the team’s stock is quite low.

Mr. Francona is widely regarded as a player’s manager. One of his former players, designated hitter David Ortiz — a free agent, by the way! — said this of his former manager after he was fired following the 2011 season: “We’re going to miss him. Tito is a good dude. Tito was a guy I played eight years for. We’re going to miss him. In my situation, I never got in Tito’s way and he never got in mine. He pretty much would remind me about some things sometimes when I really needed it.

But that’s life. Life continues. I

know he’ll be somewhere else at some point.�

In other words, Mr. Francona isn’t an Eric Wedge, the former Indians skipper who famously clashed with brash young players such as Brandon Phillips — now a two-time All-Star and Gold Glove Award winner with the Cincinnati Reds — and Milton Bradley, who, in fairness, is out of baseball after many more clashes with managers, general managers, umpires and everyone else.

Mr. Francona isn’t Eric Mangini, who reportedly made his rookies ride 10 hours to work his youth camp in Connecticut and was notoriously a hardhead.

Instead, he’ll go to bat — pardon the bad baseball pun — for his guys, which in Boston may have led to his downfall. Will that help lure free agents to Progressive Field, where the Indians have some payroll flexibility this offseason? The team currently has only $11 million committed to its 2013 payroll, with another $25 million or so likely on the books when agreements are reached with arbitration-eligible players.

We’ll know in about a month, as free agency starts after the World Series, Game 1 of which is Oct. 24. â–

Your business banking strategy.

Easy as...

1.

2.

3.

Open a Business Apply for a New York Sign up for Solutions Checking Community Bank Business Merchant Services2 with Interest EditionÂŽ VisaÂŽ Card1

Let’s do business!

Stop by your local community branch today.

2hioSavings com ‡

Credit Card is issued by First Bankcard, a division of First National Bank of Omaha, pursuant to a license from Visa U.S.A. Inc. TransFirstÂŽ is a third-party outsource provider for merchant services.

Equal Opportunity Lender 1 2

AARON JOSEFCZYK/REUTERS

New Cleveland Indians manager Terry Francona (left) and general manager Chris Antonetti on Monday at Progressive Field.

Indians require earlier season ticket renewals Some customers puzzled by two-month change

By JOEL HAMMOND jmhammond@crain.com

When the Cleveland Indians lost the last game of a home series with the Tampa Bay Rays on July 19, they were three games out of first place in the American League’s Central Division.

Forty days — and eight wins — later, they were 17½ games out, the type of swoon that makes customers think even harder about their decisions to renew their purchases for next season.

Yet the Indians afforded their season ticket base — a group whose membership has dropped precipitously since 2008 — nearly eight weeks fewer than it typically has to make that decision.

The team this season required season ticket holders to commit to renewing with at least a partial payment on their account by Oct. 5, or risk losing their seats. The Indians will hold a select-a-seat events this week; if current season ticket holders have not made at least some payment on a 2013 package, their seats will be listed as available at that event.

Last offseason, the date by which season ticket holders had to commit was Nov. 30, with the select-a-seat event held at Progressive Field in December. “Why the urgency?,� asked one longtime season ticket holder who buys multiple packages. “Why do they need renewals back, so they know what they have to sell? They have tickets everywhere anyway.�

The team says despite the compressed postseason renewal period — invoices originally were sent in late August, which also was moved up from last season, according to multiple season ticket holders — the move was made to benefit customers. The Indians still allow fans to pay their invoices up front, for which those season ticket holders receive the most points in the team’s new “Indians Rewards� program.

But senior director of communications Curtis Danburg said moving up the date allows those paying in installments to spread them over nine months; there also are three- and six-month options. And staging the team’s select-a-seat event in October limits the potential for bad weather that has marred the event in the past in December, Mr. Danburg said.

State of the team The Indians’ season ticket base —

which the team counts as not only full-season packages but also equivalents, including combined partialseason packages — has decreased steadily since 2008, the year after the team was one game away from the World Series but eventually lost in seven games to the Boston Red Sox, which went on to sweep Colorado.

That year, the Indians had 15,000 full-season equivalents, up 15.3% over 2007, when they had 13,000.

But that base dropped 22% in 2009, to 11,700, and 31% in 2010, to 8,000.

Last season, it dropped to 7,500 and this year is thought to be closer to 6,000.

The team was last in Major League Baseball in attendance for much of the 2012 season, though it rallied late in the season and finished 29th, averaging 19,797 fans per game.

Still, that was a 13% decrease over last year’s per-game average of 22,726. Over their final 19 games, after the New York Yankees made their annual visit, only 15,535 fans on average walked through the Progressive Field turnstiles.

But the Indians last week introduced to their fans new manager Terry Francona, who in 2001 served as a special assistant to then-general manager Mark Shapiro during the 2001 season, Mr. Shapiro’s first on the job. Mr. Francona brings with him a winning pedigree, having won two World Series titles with the Boston Red Sox and taken them to five playoffs in his eight seasons there. He also has a reputation for grooming young players into highcaliber Major Leaguers, as Dustin Pedroia and Jacoby Ellsbury, among other Red Sox, blossomed under him.

But the Indians’ plan for player acquisition remains unclear, though they do have some room to work: They have $11 million committed to four players, though that figure grows to nearly $16 million if they exercise their option on underachieving Ubaldo Jimenez, a virtual certainty. After reaching short-term deals with their young, arbitrationeligible players, that $16 million should grow to $40 million or so.

That gives the team room under this year’s $64 million payroll to make some moves, though that figure likely won’t grow much, if at all, after the team failed to hit budget and attendance projections. That will present Mr. Francona a challenge with which he never dealt in Boston, which always spent to keep up with their rival, the New York Yankees. â–

20121015-NEWS--11-NAT-CCI-CL_--

10/12/2012

2:08 PM

Page 1

OCTOBER 15 - 21, 2012

WWW.CRAINSCLEVELAND.COM

GOING PLACES

CRAIN’S CLEVELAND BUSINESS

11

Attn: Manufacturers & Warehouses executive creative director.

JOB CHANGES

TWIST CREATIVE INC.: Christopher Oldham to director, design operations; Josh Taylor, to director, strategy and development; Todd Sheppard to director, media relations; Joel Miller to art director; Stacey Martin and Kim Hall to designers.

CONSTRUCTION PROJECT AND CONSTRUCTION SERVICES INC.: Jackie Pollard to quantity surveyor; Pete Perticarini to director of operations; Joe Knab to senior project manager.

Missed out on FirstEnergy’s Lighting Rebate?

Learn how to get a rebate for upgrading your lighting Pollard

Perticarini

Knab

• Replace HID high bays • Upgrade T-12 fixtures • 50% Energy Savings • Utility Rebates

EDUCATION LAKE ERIE COLLEGE: Marc R. Barbeau to vice president, institutional advancement.

REAL ESTATE

• Tax Incentives

CRESCO REAL ESTATE: Kevin Piunno to senior vice president.

• Brighter lighting

NRP GOUP: Richard Kyle Schultz to manager of talent acquisition.

ENGINEERING CIVIL & ENVIRONMENTAL CONSULTANTS INC.: Christine M. Penix to assistant project manager; Peni M. Portman to administrative assistant.

• Fast Payback Penix

Portman

Welsch

Independence, Ohio Thurs., Nov. 8, 9-11:30 a.m. $69.00/person Registration limited to first 40

SERVICE SAFEGUARD PROPERTIES: Linda Erkkila to general counsel; Jennifer Jozity to assistant vice president, inspections operations; John Gonos to director, training.

FINANCE FIFTH THIRD BANK, NORTHEASTERN OHIO: Eric Welsch to vice president and managing director, Mid-Corporate Banking; William Welsh Jr. to vice president, senior structured finance relationship manager.

TECHNOLOGY

CALL TODAY! Don't squander this opportunity!

Registration deadline Oct. 31st Register at www.ROI-Energy.com/seminar or call 330-931-3905 Welsh

Wilson

Vadini

Capps

Tapié

Stuelpe

EMERGE INC.: Claire Guzik to graphic designer; Brian Riazzi to web developer.

BOARDS

FINANCIAL SERVICE

BEACHWOOD CONVENTION AND VISITORS BUREAU: Rob Platt (Trend Brand Solutions) to chairman; Jim Doutt to vice chairman; Karen Shoemaker to treasurer and secretary.

CARD, PALMER, SIBBISON & CO.: Megan M. Cook to supervisor; Iuliana Popa and Dominic J. DeTillio to staff accountants.

IPLANGROUP: Tim Debronsky to vice president, senior IRA asset strategist; Rob Zvara to IRA asset strategist; Lou Ann Watson to vice president, client services and operations.

BEECH BROOK: Walter Stuelpe (Gates Group Capital Partners) to chairman; Philip Dawson to co-vice chair of administration.

CLEVELAND SIGHT CENTER: Andrew L. Sikorovsky to chair; William L. Spring to first vice chair; Thomas J. Gibbons, Dr. Charles K. Koster and Frann R. Zverina to vice chairs; Gary W. Poth to treasurer; David E. Cook to assistant treasurer; Sheryl King Benford to secretary; Karen Peterson Assink to assistant secretary.

HEALTH CARE BUDERER DRUG CO.: Scarlett M. Lynn-Hohmeier and David Melton to staff pharmacists; Jamie Roth to pharmacy technician; Nick Swinford to communications manager; Jessica Thomas to pharmacy technician.

MANUFACTURING

ROSE-MARY CENTER: Craig Haran (Frantz Ward LLP) to chairperson; Robert McAuley to vice chairperson; Gene Killeen to treasurer; John McGarry to secretary.

CODONICS INC.: Tom Guarente to vice president, North American sales.

DIEBOLD INC.: Felix Gonzales to vice president, strategic initiatives and business development, electronic security.

AWARDS

EATON CORP.: Mary Kay Nedrich to director, HR Systems and Shared Support.

CLEVELAND MUSEUM OF NATURAL HISTORY: Mary Beth McCormack (Ruffing Montessori School) received the 2012 Conservation Educator of the Year Award.

MIDWEST BOX CO.: Bill Groth to sales representative.

ROLL-KRAFT: Ron Tucker to outside sales team.

PRESS CLUB OF CLEVELAND: Jack Marschall received the 2012 Chuck Heaton Award.

SIFCO FORGED COMPONENTS: Gary Wilson to operations manager; Kevin Vadini to area operations manager; Jim Capps to maintenance and facilities manager.

RETIREMENT LINKMEDIA 360: Betty L. Brown, after 47 years of service, effective Dec. 31.

MARKETING DIX & EATON: Kevin A. Ziegler to senior account executive.

Send information for Going Places to dhillyer@crain.com.

GO2 MARKETING: Paul Tapié to

GET DAILY NEWS ALERTS FROM CRAIN’S Register for free email alerts and receive: ■ The Morning Roundup: The day’s business news from Ohio’s daily papers

■ Breaking news alerts ■ Daily headlines: Crain’s-produced news and blog items from the day ■ Small Business, Energy and Staffing/HR reports

SIGN UP NOW AT: CrainsCleveland.com/register ■ Crain’s on Twitter: @CrainsCleveland ■ Crain’s on Facebook: Facebook.com/CrainsCleveland

Presented by FirstEnergy and ROI Energy

20121015-NEWS--12-NAT-CCI-CL_--

12

10/11/2012

1:08 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

The Sky Quest Travel Experience: Relaxing travel with no waiting in lines, no carrier delays A flight that departs on YOUR schedule â—† A private aircraft with a crew you know and trust â—† Substantial savings over jet card programs â—† One-way flights available with NO repositioning fee â—†

AIR CHARTER SERVICE AIRCRAFT MANAGEMENT

â—†

SAFETY

â—†

SERVICE

â—†

CONVENIENCE

Northern Ohio’s Premier Air Charter Company 216-362-9904

www.FlySkyQuest.com

Charter@FlySkyQuest.com

4900 Campbell Road, Willoughby ‡ ‡ ‡ ‡ ‡ ‡ ‡

$YDLODEOH IRU 6DOH RU /HDVH 6TXDUH )HHW $YDLODEOH 6TXDUH )HHW 2IÂżFH $FUHV 'RFNV 'ULYH LQ 'RRUV $03 9 3KDVH 3RZHU Âś &HLOLQJ +HLJKW DW $SH[

FOR MORE INFORMATION, CONTACT: -RVHSK - 0DUWDQRYLF 6HQLRU 9LFH 3UHVLGHQW

MRVHSK PDUWDQRYLF#RPFOH FRP ZZZ RVWHQGRUI PRUULV FRP

What is your greatest business challenge?

We have the team for that.

Our client teams are focused on providing insight for your greatest business and legal challenges along with foresight for the issues on the horizon.

McDonald Hopkins LLC 600 Superior Avenue 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

OCTOBER 15 - 21, 2012

It is fitting that the Gates Mills home of Pat Mullin, the retired managing partner of the Cleveland office of Deloitte, was crafted with fine woodworking.

Murals, too, abound in the home, including some scenes of one particular sport in his office and intricate vines and trees in other rooms.

But as neat as the painted walls of his lower level are, they are nowhere near the reason why this lower level was one Crain’s House Calls had to see.

Take the tour today of the space where Mr. Mullin plays hots to a Masters Golf Tournament party every year: www.crainscleveland.com/housecalls.

20121015-NEWS--13-NAT-CCI-CL_--

10/10/2012

1:31 PM

Page 1

20121015-NEWS--14-NAT-CCI-CL_--

14

10/11/2012

4:11 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Rough: Former partner appealing seizure of share in course continued from PAGE 1

A great track gets off track

break out in the locker room — or strippers on the greens at certain events.

But by 2007 the wheels had come off. Unable to pay its bills and not allowed by zoning to offer public golf, Tanglewood went into foreclosure that year. For two more years it was run by a court-appointed receiver, until it was bought at auction in 2009 for $950,000 in a deal that shocked some local residents because of its low price. The course had been appraised at more than $2 million before the auction.

The buyer was Willoughby Hills attorney Marc Strauss, but now it looks as though he couldn’t keep things on the fairway, either. His backers took control of the course in February 2011, after they say he failed to make payments on loans made to purchase and maintain the property.

One of those backers — now an owner — is Mr. Tiefel. He says until recently, he didn’t even want his Tanglewood neighbors to know he owned the course, since many were angry with its condition, worried about its future, or both.

Their worries were not unfounded.

After 2007, Tanglewood became little more than a cheap date on the local golf scene. Its layout was still challenging, but the fairways were dried out, about 30% of the greens’ surface was unputtable, and the traps were in bad shape and often filled with water, Mr. Tiefel said.

“We had minnows living in one trap,” jokes Warren “Wrenny” Wolfson, Mr. Tiefel’s partner in the golf course venture, or adventure, and Mr. Strauss’ other former backer in purchasing the club.

Even after some initial work on the course itself, in 2011, the clubhouse and banquet rooms, once venues for big, glitzy events, housed little more than trash. The swimming pool was filled with broken and abandoned furniture. Mr. Tiefel said three of the bridges on the course itself were collapsed or otherwise unsafe and unusable.

Messrs. Tiefel and Wolfson now are the next best hope of turning the place around, and they say they’ve made progress. Failing to recoup the $950,000 they loaned to Mr.

Salt for Ice Control Bag and Bulk

• Halite • JiffyMelt • Calcium Chloride

Big Savings on Truckload Orders!

Minimum Delivery = 1 Pallet Forklift Delivery Available

John S. Grimm, Inc. 1-800-547-1538 Authorized Dealer

Strauss, the two say they’ve since invested another $500,000 in property improvements.

More than 350 dead trees have been removed, half of the course’s 45 sand traps have been redone, drainage has been improved and new equipment has been purchased.

Even the clubhouse and banquet rooms are largely renovated.

But what of those remaining hazards?

One might be Mr. Strauss himself, who is appealing a September ruling in Geauga County Court of Common Pleas that supported the February 2011 seizure of Mr. Straus’ assets

by Messrs. Tiefel and Wolfson. Mr. Strauss believes he should not have had his interest in the course taken away by his own partners without any further compensation, appraisal or consideration of money that Mr. Strauss spent on the course upgrades, said his attorney, James DeRoche.

“The bottom line is he was a minority owner and his partners essentially froze him out,” Mr. DeRoche said. “They were the ones that caused (the endeavor) to default on the note. ... Then they used their own default, that they created, to seize Marc’s interest.”

But Messrs. Tiefel and Wolfson said they acted properly and are not concerned about the appeal, especially since the court already has ruled in their favor. More importantly to the future of the course though, Mr. Strauss is not seeking to regain control, only to be compensated, Mr. DeRoche said.

A question of belonging Another issue is whether the course even can offer play to nonmembers, something Mr. Tiefel concedes is

At home in Northeast Ohio.

Akron • 330.664.1577 • stbank.com

DAN SHINGLER

Warren Wolfson (left) and Mark Tiefel have taken over Tanglewood Golf Course in Bainbridge Township. crucial to its ongoing viability. As it stands, Tanglewood has a temporary permit to allow public play, but that permit expires on Feb. 1, 2013 — before next year’s golf season has a chance to tee off.

Mr. Tiefel said he’s confident he can get that permit extended. Although public play has long been a contentious point at the course and among surrounding homeowners, there’s evidence that approval might be easier to come by than it has been in the past.

Michael Lamanna, a Tanglewood resident since 1985, past president of its homeowners association and, perhaps most importantly, the current chairman of the Bainbridge Board of Zoning Appeals that will decide the issue, said a few residents probably remain opposed to public play. However, more now are concerned with keeping the course open and viable than with keeping it private.

“The real issue with public and private play is what kind of a course you are maintaining. We just don’t want it to become a municipal-type public course,” Mr. Lamanna said.

“If you maintain a certain atmosphere at the course, frankly, if it’s public or private it’s not going to make a real difference. It depends on the kind of people who play there.”

Finally, there’s the issue of the course’s ownership. A deal has been struck under which homeowners at Tanglewood will purchase the course from Messrs. Tiefel and Wolfson for about $1 million, which will be paid from a special assessment on each home in the development.

Again, Mr. Lamanna predicts

there will be some dissenters, but he believes most residents are on board with that plan. It will ensure that the golf course is preserved, will block development of the property and will keep mineral rights under the control of the homeowners association. That would ensure that drilling for natural gas or other activities could be blocked or controlled by the community, he said.

The size of the community also helps, and homeowners could pay for the assessment with installments as small as $100 a year, according to Mr. Lamanna.

Messrs. Tiefel and Wolfson said they then would lease the course from the homeowners and manage it on a contract basis.

Homeowners hope for happy ending Mostly, homeowners just want their golf course back up and running in top condition, said Pete Avrea, secretary of The Tanglewood Lake Association. He predicts that the course’s new owners will prevail in their efforts, with the backing of the community.

“The golf course is absolutely critical,” Mr. Avrea said. “The property values are substantially higher here because of the golf course.”

He added, “The community is behind this 100%. There’s a big movement to see this resurrected.”

So, is the course finally back on track? It’s going into the offseason much improved, and Mr. Tiefel promises it will be in good form next spring.

But, as with a golfer, the real answer to the question of whether Tanglewood is “back” might not be fully answered until mid-season. ■

Tough Economic Times Require sensible business solutions.

Steve Hendricks

Jamie Taylor

Steve Zickefoose

MEMBER FDIC

Carey Roofing has provided sensible solutions for commercial and industrial roofing problems since 1946.

CAREY Roofing Corp.

216•881•1999 www.careyroofing.com

founded in 1946 MEMBER: National Roofing Contractors Association

20121015-NEWS--15-NAT-CCI-CL_--

10/11/2012

2:52 PM

Page 1

OCTOBER 15 - 21, 2012

Browns: Content offers sales potential continued from PAGE 3

“We have an excellent relationship with our current partner,” he said, “but we’re probably doing ourselves a disservice if we don’t continue to expand our programming, to look at what the best financial model would be and who might offer the best promotional and marketing support.”

Craig Karmazin, president of Milwaukee-based Good Karma Broadcasting, which owns WKNR, did not return a request for comment, nor did WTAM program director Ray Davis.

Crain’s reported in mid-September that CBS Radio mounted a challenge for the Indians’ deal, but sources thereafter said Clear Channel has secured a five-year contract to retain those rights. The Indians last week again said no deal was imminent.

WKRK program director Andy Roth, echoing comments made last month by CBS Radio Cleveland general manager Tom Herschel, said, “We’d be very interested. We would love to be a part of any pro franchise.” Mr. Herschel said last month, regarding a potential Indians deal, that, “We’re a sports radio station.

Why wouldn’t we want to be a part of the conversation?”

More is better The push for more content is driven by simple math — there only are 16 Browns games per season — and fans’ continued appetite for anything related to the Browns.

Mr. Ross said that even if WTAM retained the rights, or WKRK won the bidding, the radio program “Cleveland Browns Daily,” would “not necessarily” move as well. And despite what appear to be meager numbers for the show, Mr. Ross said the team is happy with it and advertisers’ response to it, and could expand it to two hours each night.

According to figures from Arbitron, a Baltimore-based outfit that tracks radio listener data, the WKNR show logs a 0.2 average quarterly rating — a measure of the average number of people listening in any 15-minute span expressed as a percentage of all adults in the market. That ranks the show 17th in that time slot in the Cleveland market, and behind WKRK. “Our criteria for this extra programming is that it’s good, the interest in the Browns is there on a year-round basis and it’s financially viable and successful,” Mr. Ross said.

“The answers continue to be yes.”

Enhanced programming, especially with so few hours of actual game time, also makes advertisers

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

more likely to feel a need to be on the air, said one area media buyer who advises clients on such decisions. The Indians and Cleveland Cavaliers, for instance, have an advantage in the sheer frequency of their games and the corresponding inventory.

Mr. Ross said the team also is exploring the possibility of a digital channel, which would be an around-the-clock source for Browns programming. The Browns’ RFP also states goals of improving the team’s 28-station affiliate network, though that wouldn’t necessarily mean an expansion but rather an improvement in the quality of stations in certain markets across the

state.

John Gorman, a local radio analyst and former program director at 105.7-FM WMJI, said he was surprised by reports that WKRK did not land the Indians deal, given parent company CBS Radio’s push nationwide.

That push includes a $75 million deal for New York City station WFAN it plans to add to its growing sports network. The network now features 18 stations, and CBS in June announced plans for a 24-hour sports network that will launch early next year.

Mr. Gorman expects CBS to push for Browns rights, too, though he said “money ultimately will be the determining factor.”

■

Office 28,300 Sq. Ft. 16035 Industrial Parkway

Furnished -- Price far below market Former PNC/National City Comptroller Building Ceilings 9 ft. - Bottom of Deck 18’9” (1) Dock Near to Cleveland Hopkins Airport, between I-480 & I-71

CALL 216-469-6170

wesleyrberger@aol.com

GB6AA 7>N

celebration pr izes for sma l l b usi nesses!

40 b ig

Small businesses win big with COSE! COSE is celebrating its 40th year of helping small businesses reach their goals with 40 prizes exclusively for small business owners. You could win a shopping spree to OfficeMax, tickets to big games, a new logo design, a laptop, a security system, a LED TV and much more.

THE CONTENDERS A look at the likely bidders for the Cleveland Browns’ flagship radio rights; the team’s current deal expires at the end of April:

Enter to win and see the complete list of prizes and rules at COSECelebration.com/2.

Incumbent ■ WTAM-AM 1100 Owner: Clear Channel Communications Inc. Held Browns rights since: 2002

Potential challengers ■ WKNR-AM 850, “ESPN Cleveland” Owner: Good Karma Broadcasting ■ WKRK-FM 92.3, “The Fan” Owner: CBS Radio

15

No purchase necessary. Void where prohibited. The BIG Small Biz Celebration begins 10/1/12 at 12:00 am and ends 11/12/12 at 11:59 pm. Open to legal U.S. Residents, who are small business owners, 18 and over and reside in one of the following eight counties in Ohio: Ashtabula, Cuyahoga, Geauga, Lake, Lorain, Medina, Portage and Summit.

Sponsor: Council of Smaller Enterprises. For rules, visit www.COSECelebration.com/2.

20121015-NEWS--16-NAT-CCI-CL_--

16

10/11/2012

3:37 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Ben Venue could get OK to restart Doxil production Bedford company idled plant in November after regulators found issues

By CHUCK SODER csoder@crain.com

A drug company owned by Johnson & Johnson has asked U.S. and European regulators to approve a new manufacturing process that would allow Bedford-based Ben Venue Laboratories to restart production of Doxil.

Ben Venue — which shut down all manufacturing last fall after regulators identified several quality control issues at its complex in Bedford — wouldn’t be the only company involved in the manufacturing process.

Ben Venue would make the drug, which is used to treat ovarian cancer and multiple myeloma, in a portion of its facility that remains available for production, said Lisa Vaga, a spokeswoman for Johnson & Johnson, which owns the company that markets Doxil, Janssen Pharmaceuticals Inc. Another supplier would handle other parts of the manufacturing process, such as sterile filtration, she said in an email to Crain’s Cleveland Business.

The U.S. Food & Drug Administration and the European Medicines Agency are reviewing the applica-

“Our highest priority is to resume the ... delivery of safe and effective medicines.”

– Marjorie Moeling, spokeswoman, Ben Venue Laboratories tions, Ms. Vaga said.

No other companies make Doxil, so the Ben Venue shutdown has resulted in a shortage of the drug.

Ben Venue’s involvement in the proposed manufacturing process wouldn’t be permanent: The company more than a year ago announced

plans to get out of the contract drug manufacturing business to instead focus on making generic injectable drugs marketed by the company’s Bedford Laboratories division.

Thus, Johnson & Johnson is looking for drug manufacturers who could replace Ben Venue.

Ben Venue employs roughly 1,400 people in Bedford, according to the company’s website.

Ben Venue spokeswoman Marjorie Moeling said via email that company executives were not available for comment.

“Our highest priority is to resume the manufacturing and delivery of safe and effective medicines for patients who need them — as quickly as possible,” she wrote.

■

Stay ahead of your finances, so your business can keep heading in the right direction.

A look back: Ben Venue shuts facility Dozens of quality control issues raised by regulators last November pushed Ben Venue Laboratories Inc. to shut down temporarily all manufacturing and distribution operations at its headquarters in Bedford.

Inspections by regulators from the United States, the United Kingdom and France highlighted several quality control issues at the pharmaceutical manufacturing complex. Several were related to a sterile filling process Ben Venue uses to make injectable drugs.

For instance, several customers complained they had noticed metallic particles in several batches of two drugs made at the plant.

Ben Venue as of last June had not laid off any employees and was actively hiring, according to an email that a company spokesman sent to Crain’s at the time.

Investment advisers see assets, hires up since ’08

By DAN JAMIESON Investment News

Treasury Management from FirstMerit.

There’s a lot to manage when it comes to your business. That’s why you need the right tools to stay on course. FirstMerit Treasury Management has comprehensive services that help you manage your receivables to improve cash flow, control your payment cycle to optimize your working capital, and automate your routine business activities. We’ll provide the tools that keep you heading in the right direction, directly toward your goals.

firstmerit.com/youfirst

TO L E A R N MOR E, C O N T A C T :

Sean Richardson, NorthCoast President & CEO, at 216-802-6565.

Follow the latest market trends @firstmerit_mkt

PERSONA L

BUSINESS

COMMERCI A L

W E A LT H

Member FDIC 674_FM12

Advisers are positive about their own businesses, but they can’t say the same about the markets or the political landscape.

Three-quarters of the advisers surveyed in August in Charles Schwab & Co. Inc.’s semiannual survey of independent advisers said their assets under management had grown over the past four years.

What’s more, 55% said that, since 2008, the profitability of their own firms had increased, and 37% are hiring employees. But eight out of 10 say the election is affecting them or affecting clients, and 88% agreed that political gridlock had worsened over the past four years.

Concerns about unemployment almost doubled, with a third of advisers now expecting an increase in the jobless rate, versus just 18% in the same survey last January. Almost a quarter (23%) are concerned about a double-dip recession, up from 14%.

“We have done surveys prior to elections before, but we’ve … not been in this position before” with interest rates at zero, huge global uncertainty driven by the eurozone sovereign-debt crisis, the fiscal cliff, uncertain tax rates and “arguably the biggest government divide” ever, said Bernie Clark, head of Schwab Advisor Services.

As a result, advisers plan to pare back U.S. stocks and put more into cash compared with January’s survey.

Some 34% are bullish now, down from 45%.

Half of advisers think inflation will increase, up from 44% in January. ■

20121015-NEWS--17-NAT-CCI-CL_--

10/10/2012

3:28 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

17

Reputation-damaging GM pushes perks for fleet buyers events occur frequently

By MIKE COLIAS Automotive News

And those crises drive down company values

By RODD ZOLKOS Business Insurance

Events that damage a company’s reputation can have a significant financial effect on its shareholder value and can come from any number of directions.

In a world of web-based communications and social media, the risks of reputational damage are exacerbated, while the time to respond to a reputational threat has been reduced dramatically, experts say.

Not only can the impact of a reputation-damaging event be detrimental, there’s evidence that such events occur frequently. A new report, “Reputation Review 2012,” prepared by analytics and advisory firm Oxford Metrica and sponsored

by Aon P.L.C., suggests there is an 80% chance of a public company losing at least 20% of its equity value in any single month over a five-year period because of a reputation crisis.

“Having a robust, evidence-based reputation strategy in place will minimize the likelihood of a critical event turning into a reputation crisis and will maximize the probability of recovery,” according to the report.

“Probably the first takeaway is how prevalent reputational events are,” said Randy Nornes, executive vice president with Aon Risk Solutions in Chicago. “It’s not something that’s rare. Over five years, it’s quite likely.”

Jonathan Copulsky, principal at Deloitte Consulting L.L.P. in Chicago, said, “It’s not a question of if, it’s a matter of when. We encourage people to think about what they would do” when an event occurs.

Reputation-threatening events can come at organizations from any number of directions.

“Product safety is one big category that we see. A second big category we see is unhappy customers,” Mr. Copulsky said. “A third can be behavior on the part of either employees or the CEO.” Regulatory pressures also can pose reputational risks, particularly in the financial services industry, he said.

Rob Yellen, chief underwriting officer for financial lines in the U.S. and Canada at Chartis Inc. in New York, cited the reputation effect of data breaches and computer system hacks, and the experiences of companies that faced supply chain disruptions or radiation fears after the March 2011 earthquake and tsunami in Japan.

He also mentioned the situation after last year’s cantaloupe listeria outbreak. While the outbreak was tracked to a Colorado producer, other producers and even companies selling different sorts of melons felt a reputational impact, Mr. Yellen said.

“You have some incidents that affect the whole category,” Mr. Copulsky said. “Categories can lose trust in the same way that individual companies can.”

“It’s anything, anywhere. If you have a company that’s valuable, you have a reputation and you need to protect it,” Mr. Yellen said. “It’s easy in today’s world for anybody to attack a company’s reputation.”

A balancing act Social media and the Internet exacerbate reputational exposures, allowing reputation-threatening information to spread widely and very quickly, while also reducing response time. Because items have a long lifespan on the Internet, it also increases persistence.

“You’ve got to manage all these factors: dispersion, speed, need for a quick response and persistence,” Mr. Copulsky said.

“We are in the midst of an evolution of how we communicate,” Mr. Yellen said. “You’ve got Twitter out there, and anybody can post anything about anybody, and there’s very little recourse.”

Tracy Knippenburg Gillis, global reputational risk and crisis management practice leader for Marsh Inc.’s Marsh Risk Consulting unit in New York, said the advent of the 24hour, seven-day-a-week cable news cycle at least 20 years ago changed the game in terms of responding to reputation risks.

“Social media (are) changing the game in a different way. Things can go viral very quickly,” she said. “But it also creates the challenge of when and how to respond.”

It’s important to recognize whether the social media activity actually is sufficient to merit a response, Ms. Gillis said. If the volume of social media activity is small, “it’s not to say you ignore it. But it doesn’t drive your strategy at that level,” she said. “You’re always doing a balancing act, and now social media is one more outlet to consider.”

A common mistake in addressing reputation threats involves a lack of “understanding when you should just let it go,” Mr. Copulsky said.

“Not every tweet, not every post to Facebook matters.”

Another common error is that many companies automatically decide to address events through their CEO and public relations staff rather than considering whether it might be more effective to involve frontline employees, Mr. Copulsky said. “It’s a delicate balance,” he said, stressing the value of “properly equipping employees to be an ambassador for you.”

Be prepared With reputational risks coming in various and sometimes unpredictable forms, preparation for reputationthreatening events is essential.

“When an event occurs, you need to respond promptly, effectively and efficiently,” Ms. Gillis said.

In addition, it’s important to have an “early warning system” such as a media-monitoring mechanism in place as a bridge between the understanding of reputational risk and the preparations for dealing with events.

Mr. Yellen stressed the value of bringing in an outside expert to help with discussing the risk, scenario planning, building a plan for dealing with reputation-threatening events and testing the plan.

“We believe the right thing to do is facilitate our insureds, the policyholders, getting really good advice on crisis communications,” before and during an event, he said.

■

DETROIT — General Motors is overhauling its commercial dealer network in a bid to boost sales to business customers.

GM wants dealerships that sell to small and midsize businesses — customers who buy one to 100 vehicles a year — to offer perks such as extended service hours and better availability of loaners.

In exchange, GM is offering commercial dealers advertising support, more floor plan money and the chance for more bonus cash based on sales volume, among other benefits.

The program will go into effect in January and replace a system that has been in place for more than a decade, says Ed Peper, who in June was appointed GM’s U.S. vice president of fleet and commercial sales.

About 430 of GM’s dealers, or roughly 10% of its U.S. network, are enrolled in the current commercial program.

GM hopes that beefing up its service to construction companies, farmers and other commercial customers will boost a fast-growing slice of its business. Sales of pick-

ups, commercial vans and other vehicles to business customers, including large corporate buyers, grew 18% this year through September, compared with 3% for GM’s overall U.S. sales.

GM sales executives say demand from small and midsize businesses has emerged as a key driver of the company’s sales growth, as businesses that delayed purchases during the economic downturn look to replace aging vehicles.

“We want to encourage our dealers into the smaller fleet space,” says Jennifer Costabile, director of marketing and sales support for GM’s fleet and commercial business.

“There’s a lot of pent-up demand.

We have a tremendous number of businesses out there that are really ripe for our dealers to go after.”

Mr. Peper says any GM dealer who agrees to the conditions can sign up for the program. Under the new rules, dealers must: ■ Pay a $400 monthly administrative fee.

■ Staff at least one sales manager and one account specialist exclusively for commercial customers.

■ Offer commercial customers priority service hours beyond normal operating hours.

■ Install and maintain at least one service hoist that can lift up to eight tons.

■ Maintain a dedicated marketing budget for the commercial business.

Dealers who comply with those and other standards can earn at least $100 per commercial vehicle sold if they also hit a factory-set sales objective. That will replace a system of occasional 60-day, “stairstep” incentive programs, which pay dealers bonuses as sales targets are met.

They also will get an extra 60 days of floor plan coverage on certain vehicles, as well as financial assistance for maintaining work-ready loaner vehicles. GM also will create an advertising program exclusively for commercial dealers.

For larger corporate accounts, GM has its own sales force that calls on those customers, which generally service their own vehicles.

Mr. Peper says dealers should covet small and midsize business customers because they tend to be more loyal than retail customers, they spend more on service and they often generate referrals for retail business.

“This is all about customer retention for us,” he says.

■

Tuesday, October 23 @ LaCentre, Westlake 5:30 – 8:30 p.m.

PRESENTED BY

Awards Gala Meet the CFOs who have demonstrated innovation and leadership in navigating the unique challenges of the changing economy

Reserve your tickets now - Seating is limited TICKETS

www.CrainsCleveland.com/CFOtix 216.771.5182 or chendricks@crain.com CO-PRESENTED BY

IN PARTNERSHIP WITH WIT

VIDEO SPONSORED BY

SUPPORTED BY

COCKTAIL SPONSOR

20121015-NEWS--18-NAT-CCI-CL_--

18

10/12/2012

4:40 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

Athersys eyes new stock to raise cash Offer: Debt financing Years away from releasing first stem cell product, climate is ‘white hot’ capital would help operations in the meantime

By CHUCK SODER csoder@crain.com

Athersys Inc. could raise up to $25.6 million on the stock market — but it would end up selling about one-third of the company in the process.

The Cleveland stem cell company has filed a regulatory form that would allow it to create up to 19.55 million new shares of stock at a maximum price of $1.31 per share, which adds up to about $25.6 million.

Athersys investors own roughly 40 million shares of the company today, a figure that would grow to about 60 million if the company issues the full 19.55 million in shares.

The 40 million figure includes about 30 million shares of common stock outstanding and 10 million shares consisting of warrants, options and restricted stock, according to the S-1 document Athersys filed on Oct. 9 with the U.S. Securities and Exchange Commission.

Athersys, which is listed on the

Nasdaq Capital Market, often says in public documents that it needs to raise more money because the company expects it will be years before it is able to release first product, MultiStem, which uses adult stem cells to treat a variety of condition.

Money from any new shares sold would be used for “working capital and general corporate purposes,” which in Athersys’ case means much of it likely will go toward funding clinical trials.

The offering would provide Athersys with much-needed capital — the company had about $10.9 million in cash and cash equivalents on June 30, only enough to last until the first quarter of next year — but it also dilutes the value of shares held by existing investors.

Athersys’ stock price dropped from $1.32 at the close of business Oct. 8 to $1.24 when the market closed Tuesday, Oct. 9, the day of the SEC filing. Athersys’ stock price started trending down on Sept. 20, when it closed at $1.51 per share.

Trading has been particularly heavy

since Sept. 27, though it’s unclear why. Since then, there have been three days where the number of shares traded has topped 1 million, a number the stock almost never reaches.

In addition to this announcement, one factor that could have affected trading was an Oct. 2 announcement from New York private equity firm OrbiMed Advisors stating it had sold about 600,000 Athersys shares, dropping its stake in the company to 3.48% from 5.56%.

A general partner with OrbiMed resigned from the company’s board on Sept. 9.

Also on Oct. 2, Athersys announced that it had finished testing MultiStem on the first group of stroke patients participating in a Phase II effectiveness study focused. That data allowed the company to pass an independent review and move ahead with the rest of the trial.

An official from Athersys did not respond to messages left by email and phone.

Next year, the company expects to report data from its first Phase II clinical trial. That will be a key milestone in the company’s development because it will provide data on MultiStem’s effectiveness.

■

continued from PAGE 3

investments of Weiss family members beyond their holdings of American Greetings’ Class B stock, each share of which is entitled to 10 votes.

The background information provided on Zev Weiss, president and chief operating officer Jeffrey Weiss and their father, chairman Morry Weiss, only notes that they are officers of the company; the same is true of Gary Weiss, who is a vice president of American Greetings and a brother of Zev and Jeffrey Weiss. It does not disclose outside investments by the four men.

A little more is disclosed about Elie Weiss, another Weiss brother whom the SEC filing said “is engaged in real estate development and is a principal of two restaurant development and operating groups, Paladar Latin Kitchen and Rum Bar, and Province, which have restaurants in Ohio, Maryland, Illinois and Arizona.”

However, the SEC document does indicate that the Class B shares are likely to provide a big source of equity in the transaction.

Family matters The Weiss family has stated that family members and related interests — most notable of which is the Irving L. Stone Limited Liability Company, which was formed by American Greetings’ late chairman, Irving Stone, to facilitate his estate planning goals — will roll most if not all of their Class B shares into the acquired company. The Weiss brothers, Morry Weiss and Irving Stone LLC own about 3 million Class B shares in total, according to the SEC filing.

A comparable amount of Class A stock would be valued at about $50 million.

The Weiss family’s Sept. 25 letter to the company’s board does not reveal the sources of the debt financing that the family expects to line up.

However, Paul Carleton, managing partner of Carleton McKenna & Co., a provider of merger-and-acquisition advisory services in Cleveland, said because of the size of the deal any financing arrangement will involve multiple lenders who are part of a syndicate.

David Brown, managing director of investment banking firm Red Hawk Associates Ltd. in Pepper Pike, said lenders in the deal could include banks, insurance companies, hedge funds and providers of mezzanine financing, the latter two of which generally are willing to assume more risk for the promise of greater returns.

Mr. Brown estimates lenders that tie their financing to collateralized assets such as accounts receivable, inventory and property, plant and equipment would be willing to extend the Weiss family close to $400 million in the transaction. He bases that estimate on lenders extending credit equal to 80% of American Greetings’ accounts receivable, which totaled $97.6 million as of Aug. 24, the end of the company’s second quarter, and equal to 50% of the company’s inventory and property, plant and equipment, which respectively totaled $276 million and $331.6 million as of Aug. 24.

Other borrowing could be based on expected cash flows, Mr. Brown said.

‘More dollars than deals’ Sean Dorsey, founder and manager director of investment banking

firm League Park Advisors in Cleveland, offers a different take on how lenders will view the deal. Mr. Dorsey said the amount of debt lenders will be willing to extend “will be more a function of the cash flow of the company” and will be less dependent on receivables.

“It’s not an asset-driven deal,” Mr. Dorsey said. That’s in part because the greeting card business is “a high gross margin business, and they’re able to dominate it,” he said.

Mr. Dorsey said he believes banks in particular will find the transaction of interest because of its size, noting that “large leveraged buyouts fail at a lower percentage than smaller leveraged buyouts.”

A capital markets insider in New York who could not be identified due to company policy said he expects the Weiss family will have no trouble lining up the money it needs because the debt financing market “is white hot right now.”

“There are more dollars than deals right now” due to what the insider termed “massive inflows into the high-yield space” as lenders seek investment alternatives amid today’s low interest rates.

“We’re seeing some of the most aggressive deals getting done that we’ve seen in the last five or six years,” this source said. He said he believes the Weiss family also will benefit from lenders “who will be familiar with the company.”

League Park’s Mr. Dorsey suggests that the Weiss family could partner with a private equity fund in order to amass the capital it will need to satisfy lenders in the transaction.

“I think there’s lots of private equity that would be willing to partner with the Weiss family on a deal like this,” Mr. Dorsey said.

A buying opportunity In the meantime, one large shareholder isn’t waiting for more details about how the deal will be financed before acquiring more American Greetings stock.

TowerView LLC, an investment firm controlled by New York investor Daniel R. Tisch, notified the SEC in a Schedule 13-D filing on Wednesday, Oct. 3, that it had increased its stake in American Greetings to 1.45 million Class A shares, or 5% of the Class A stock outstanding.

TowerView had been a seller of American Greetings stock in the days before the Weiss family’s goprivate offer was announced before the start of trading on Wednesday, Sept. 26. It sold 10,000 shares at $16.08 a share Sept. 13, 15,000 shares at $16.30 a share Sept. 14, and 2,500 shares at $15.41 a share on Sept. 21.

TowerView also was a buyer of the company’s stock in the five business days from Sept. 19 to Sept.

25; it purchased a total of 22,500 shares during that period at average prices ranging from $14.52 to $15.15.

However, Mr. Tisch’s investment firm became a bigger buyer of American Greetings after the public announcement of the offer on Sept.

26. That day, it bought 126,300 shares at an average price of $16.66.

It followed with purchases on Oct. 1 and Oct. 3 totaling 33,700 shares.

Members of American Greetings media relations and investor relations teams did not respond to telephone calls from Crain’s seeking information for this story.

■

20121015-NEWS--19-NAT-CCI-CL_--

10/10/2012

3:28 PM

Page 1

OCTOBER 15 - 21, 2012

BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s highlighting positive business developments that have flown under the radar. To submit information for inclusion, email Scott Suttell at ssuttell@crain.com ■ Ohio appears likely to see yet another energy company come to the state seeking to drill for gas, oil and related liquids from the Utica shale.

Denver-based 1st NRG has entered into an agreement that should give it access to 7,150 acres it hopes to develop in eastern Ohio, company officials said.

The company has secured what is known in the industry as a “farm out” agreement, under which 1st NRG did not have to purchase the mineral rights to gain access. Instead, the company will have to prove it can extract resources from the property by drilling a test well, said 1st NRG spokesman Brad Holmes.

Mr. Holmes said the entity that owns the Ohio mineral rights asked not to be named, but industry sources say such agreements are fairly common. They often are used when a conventional oil and gas driller — one that does not engage in more expensive and advanced hydraulic fracturing, or fracking — seeks to extract resources from areas for which it holds mineral rights, but can’t extract shale gas with its existing equipment and expertise.

Mr. Holmes said the agreement was fairly typical and did not include any up-front bonus payments on the part of 1st NRG to secure the rights. It will have to drill a test well and then other wells after that to build and retain its stake in the acreage. If all goes as planned, 1st NRG and the owner of the mineral rights will share the proceeds from drilling, Mr. Holmes said.

No time frame has been set for that test well. Mr. Holmes said it’s likely that 1st NRG — which is in the business of developing resources such as coal bed methane and other unconventional sources of oil and gas, but is not a driller itself — will seek a partner to conduct the drilling in Ohio.

■ Predictive Service Corp., a Beachwood company that offers reliability consulting, integrated predictive maintenance and maintenance repair services, said it has acquired Integrated Engineering Consultants Inc., a consulting engineering firm also based in Northeast Ohio.

Terms were not disclosed. Integrated Engineering focuses on designing, engineering and commissioning energy-efficient mechanical, electrical and plumbing systems. It soon will “form the foundation of the new Predictive Service Engineering Group,” according to a news release from Predictive Service.

As part of the acquisition, Integrated Engineering principals A.J. Mazza and Matthew Setzekorn will join Predictive Service. Messrs.

Mazza and Setzekorn are licensed professional engineers with 25 and 12 years of experience, respectively, in the consulting engineering, design-build and commissioning industry.

“We have been experiencing a remarkable period of growth recently,” said Predictive Service president and CEO Don Frankel in a statement.

He said the acquisition of Integrated

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

Engineering “is evidence of this trend, and further supports our mission of being a complete reliability partner.”

■ Digital content distributor OverDrive Inc. of Valley View hired an education industry veteran to lead its K-12 e-book service.

Don Fabricant, who previously held executive posts at Houghton Mifflin Harcourt, Eduventures and Thomson Learning, will serve as OverDrive’s general manager of education and chief sales officer.

“I want to build on our success in public libraries and optimize our

offerings for the school market,” Mr. Fabricant said in a statement.

“School e-books are an unstoppable trend, and we’re excited to get more students reading with the best ebook-lending platform and the most content from pre-K through high school.”

OverDrive said it now serves more than 3,500 schools in the United States and internationally, enabling millions of students to borrow e-books and digital audiobooks from their school library for use on all major e-reading devices.

Mr. Fabricant said he plans to develop new products and services that will help primary and secondary schools maximize the value of their digital collections.

“We’re developing new tools

based on ePub and HTML5 open standards that will help teachers deeply integrate e-books into the curriculum and empower school librarians to make targeted collectiondevelopment decisions,” he said.

■ Advance Payroll Funding Ltd. of Cleveland said it has added two staff members to help expand its business development capabilities.

Jack Terrana has joined Advance as a senior member of the business development group. Advance said Mr. Terrana has worked in the staffing industry for more than 20 years, “building expertise in funding, back office services and software solutions for entrepreneurial staffing firms across the United States.”

In addition, Shelly Sweedler, the

firm’s director of client engagement/ government and diversity, will move back to Advance’s headquarters in Cleveland.

“Shelly has been with Advance for over five years and helped lay the foundation for our government and diversity programs,” said Adam Stern, president of Advance, in a statement. He said Ms. Sweedler “will drive our client outreach program, assisting clients in identifying and implementing individual programs, customized to help them grow.”

The Advance Group of Cos. provides working capital, process outsourcing and strategic support to temporary and contract staffing firms. It has three operating units — Advance Payroll Funding, Advance Commercial Credit and Advance Workforce Solutions.

YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. You get to know your customers, treat them fairly, and build relationships. Don’t you deserve that same kind of treatment from your bank? With Citizens Bank, you’ll get the right solutions and products from people with the experience to know what’s right. After all, we’ve been around over 140 years, helping businesses just like yours grow. So if you want a bank that shares your passion, call us. BECAUSE WITH US, IT’S PERSONAL. $ ) & $ , * / ( 4 "7 * / ( 4 r -0 " / 4 - * / & 4 0 ' $ 3 & % * 5 r . & 3 $ ) " / 5 4 & 3 7 * $ & 4 5 3 & " 4 6 3 : . " / " ( & . & / 5 r 4 1 & $ * " -5 : ' * / " / $ * / ( r 8 & " -5 ) . " / " ( & . & / 5

1-800-946-2264 CITIZENSBANKING.COM/BUSINESS

19

20121015-NEWS--20-NAT-CCI-CL_--

20

10/10/2012

1:29 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

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 Southwest Cleveland Sleep Center Inc. 17900 Jefferson Park Road, Suite 102, Cleveland ID: 34-1938990 Date filed: Aug. 22, 2012 Type: Employer’s withholding, unemployment, corporate income Amount: $36,173 S & S Heating Cooling & Sheet Metal Inc. 10012 Akins Road, North Royalton ID: 34-1660484 Date filed: Aug. 8, 2012 Type: Employer’s withholding Amount: $36,123 All Points Rubbish Disposal LLC 32825 W. Nimrod St., Solon ID: 30-0550968 Date filed: Aug. 1, 2012

Type: Employer’s withholding Amount: $35,880 Anthony Group Inc. Dapper Dans 10703 W. Pleasant Valley Road, Parma ID: 20-1291812 Date filed: Aug. 22, 2012 Type: Employer’s withholding, unemployment Amount: $34,934 Johnnys Tavern & Restaurant Inc. 3164 Fulton Road, Cleveland ID: 34-1571273 Date filed: Aug. 14, 2012 Type: Employer’s withholding Amount: $28,426 Imperial Glass & Door Co. 6517 Bessemer Ave., Cleveland ID: 34-0858987 Date filed: Aug. 24, 2012 Type: Employer’s withholding Amount: $22,865 Stratum Energy Systems LLC 1790 E. 40th St., Cleveland ID: 20-1173906 Date filed: Aug. 1, 2012 Type: Employer’s withholding, unemployment Amount: $22,209 Euclid Foreign Motors Inc. 20020 Saint Clair Ave., Euclid ID: 34-1087596 Date filed: Aug. 10, 2012 Type: Employer’s withholding,

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

unemployment Amount: $22,032

Type: Employer’s withholding Amount: $12,142

Maple Heights Early Learning Center 15414 Turney Road, Maple Heights ID: 27-3154278 Date filed: Aug. 14, 2012 Type: Unemployment, employer’s annual federal tax return Amount: $21,041

A Caring Alternative Inc. 1220 Huron Road, Cleveland ID: 34-1801887 Date filed: Aug. 14, 2012 Type: Employer’s withholding, unemployment Amount: $11,503

Yormick & Associates Co. LPA 526 Superior Ave. E., Suite 230, Cleveland ID: 34-1882937 Date filed: Aug. 24, 2012 Type: Employer’s withholding Amount: $18,723 Northeast Contracting LLC 25446 Bryden Road, Beachwood ID: 20-4369728 Date filed: Aug. 8, 2012 Type: Employer’s withholding, unemployment Amount: $16,748 Regina Savage DDS Inc. 5311 Northfield Road, Suite 215, Bedford Heights ID: 56-2372784 Date filed: Aug. 21, 2012 Type: Employer’s withholding, corporate income Amount: $13,950 Pavlic Auto Body Inc. 1020 Brookpark Road, Cleveland ID: 34-1537042 Date filed: Aug. 10, 2012

LDH Painting Ltd. 11811 Shaker Blvd., Suite 316, Cleveland ID: 20-3987745 Date filed: Aug. 8, 2012 Type: Employer’s withholding Amount: $10,599 Raintree Enterprises LLC 2000 Auburn Drive, Suite 200, Beachwood ID: 30-0074590 Date filed: Aug. 8, 2012 Type: Employer’s withholding Amount: $9,927 Three B Manufacturing LLC 13005 York Delta Drive, North Royalton ID: 20-3541565 Date filed: Aug. 10, 2012 Type: Employer’s withholding Amount: $8,883 Lakewood Pizza Inc. 16210 Detroit Ave., Lakewood ID: 20-1130641 Date filed: Aug. 22, 2012 Type: Employer’s withholding Amount: $8,557 Aetna Welding Co. 4613 Broadway Ave., Cleveland ID: 34-0686089 Date filed: Aug. 8, 2012 Type: Employer’s withholding Amount: $7,813

Need Technology Help?

Get Cox Business Tech Solutions for $14.99/mo for 3 months!

An IT staff member could cost up to $6,000 per month compared to Cox Business Tech Solutions which provides unlimited helpdesk support for as little as $14.99 per PC/month.

Greenwich Partners LLC 17000 St. Clair Ave., Cleveland ID: 27-2941122 Date filed: Aug. 1, 2012 Type: Employer’s withholding Amount: $7,535 Northwood Products Inc. 135 Blaze Industrial Parkway, Berea ID: 20-4718668 Date filed: Aug. 14, 2012 Type: Employer’s withholding Amount: $7,498 J Schrader Co. 4603 Fenwick Ave., Cleveland ID: 34-0207795 Date filed: Aug. 1, 2012 Type: Employer’s withholding Amount: $7,214 Brickworks LLC P.O. Box 19322, Cleveland ID: 31-1516796 Date filed: Aug. 14, 2012 Type: Employer’s withholding Amount: $7,078

PROBLEM P ROBLEM ROBLEM

F FIXED IXED

DIAGNOSIS Receive 24/7 remote help desk support from the experts at Cox Business.

Software and network assistance, virus removal, and tune-ups for your company’s computers — we’re there. To get your business started today, visit www.coxbusinesstechsolutions.com.

1-866-791-2688 *Offer available to new subscribers of Cox Business Tech Solutions monthly subscription service in Cox, wired, serviceable locations of Connecticut, Ohio and Rhode Island. One year service contract required. $14.99 rate applies to the first computer for three months. After three months the rate is $19.99 per month for the first computer. Cox Business Tech Solutions will cover up to 10 computers. $14.99 for each additional PC (up to 9) will apply.

Offer does not apply to Cox Business Tech Solutions non subscription services or site visits. Services may not be available in all areas. Other restrictions apply. ©2012 CoxCom, LLC., d/b/a Cox Communications Ohio and New England. All rights reserved.

Ohio Natural Stone LLC 760 W. Bagley Road, Berea ID: 30-0260193 Date filed: Aug. 8, 2012 Type: Employer’s withholding Amount: $6,192 La Barberia Inc. 12115 Mayfield Road, Cleveland ID: 34-1883060 Date filed: Aug. 1, 2012 Type: Employer’s withholding Amount: $6,127 Parma Pre-School Inc. 5280 Broadview Road, Parma ID: 34-1573228 Date filed: Aug. 14, 2012 Type: Employer’s withholding Amount: $6,103 Ken and Terrys Enterprises LLP 9106 Manor Ave., Cleveland ID: 34-1898772 Date filed: Aug. 1, 2012 Type: Employer’s withholding, partnership income Amount: $5,465

AnnieCarries and A C Homecare and Transportation Inc. 1469 Dille Road, Euclid ID: 27-0742590 Date filed: Aug. 1, 2012 Type: Employer’s withholding, unemployment Amount: $5,048

LIENS RELEASED Blessed Hope Missionary Baptist Church of Cleveland 8804 Buckeye Road, Cleveland ID: 34-1462367 Date filed: April 4, 2007 Date released: Aug. 1, 2012 Type: Employer’s withholding Amount: $167,500 BTA of Motor Cars Inc. 27500 Lorain Road, North Olmsted ID: 34-1801028 Date filed: Jan. 20, 2009 Date released: Aug. 1, 2012 Type: Employer’s withholding Amount: $12,947 Carlton Manor Nursing and Rehabilitation Center Inc. 726 Rawlings St., Washington Courthouse ID: 81-0595869 Date filed: July 9, 2010 Date released: Aug. 8, 2012 Type: Employer’s withholding, unemployment Amount: $116,248 Dlakin Inc. GI Window Cleaning Co. 24208 Chardon Road, Richmond Heights ID: 16-1687400 Date filed: July 5, 2012 Date released: Aug. 1, 2012 Type: Employer’s withholding, failure to file complete return Amount: $5,621 EC Financial LLC 8555 Sweet Valley Drive, Suite C, Valley View ID: 26-3324371 Date filed: June 21, 2012 Date released: Aug. 1, 2012 Type: Employer’s withholding Amount: $20,948 Lekara Inc. 13592 Euclid Ave., East Cleveland ID: 34-1463518 Date filed: Nov. 18, 2002 Date released: Aug. 22, 2012 Type: Employer’s withholding Amount: $10,086 Leonard and Susan Fuchs Mizrachi School 26600 Shaker Blvd., Beachwood ID: 34-1400924 Date filed: May 8, 2012 Date released: Aug. 8, 2012 Type: Employer’s withholding Amount: $31,855 P A G Enterprises LLC 10637 Glen Forest Trail, Brecksville ID: 30-0057522 Date filed: May 15, 2012 Date released: Aug. 1, 2012 Type: Employer’s withholding, corporate income, employer’s annual federal tax return Amount: $23,205 P L A N Enterprises Inc. 20898 Drake Road, Strongsville ID: 30-0291421 Date filed: Feb. 8, 2012 Date released: Aug. 21, 2012 Type: Employer’s withholding, unemployment Amount: $18,449 P L A N Enterprises Inc. 20898 Drake Road, Strongsville ID: 30-0291421 Date filed: June 2, 2010 Date released: Aug. 21, 2012 Type: Employer’s withholding, corporate income Amount: $6,048

20121015-NEWS--21-NAT-CCI-CL_--

10/10/2012

3:29 PM

Page 1

F

or the sixth year in a row, Crain’s Cleveland Business is highlighting the area’s top fiscal officers with its CFO of the Year Awards.

The finalists all have helped lead their organizations with sound fiscal management and guidance.

An independent panel of judges reviewed the nominees, taking into account the following: candidate background, including unique qualities and accomplishments; leadership in such areas as strategic planning and vision, business challenges, risk management and succession planning; financial management, including monetary growth, market share gains, profitability, stability, strategic transaction and commitment to accounting standards; and external contributions (philanthropic, community, financial industry and board of directors service).

This year’s judges were Patty Gaul, senior vice president of business and general counsel, PlayhouseSquare (2008 award winner); Vince Petrella, CFO, Lincoln Electric Co. (2011 award winner); Yank Heisler, retired chairman, KeyBank and former business school dean, Kent State University; Jim Boland, chairman, JobsOhio and former Cavaliers executive; Charley Cooley, retired CFO, Lubrizol Corp.; and Tom Waltermire, CEO, Team NEO. Finalists, nominees and award recipients will be recognized at an event from 5:30 p.m. to 8:30 p.m. next Tuesday, Oct. 23 at LaCentre in Westlake.

Tickets to the event can be purchased at www.CrainsCleveland.com/CFOTIX or by calling 216-771-5182.

2012 CFO OF THE YEAR FINALISTS ■ Hilary Beatrez, The Cleveland Hearing and Speech Center PAGE C-2 ■ Michael Biehl, Chart Industries Inc. PAGE C-2 ■ Ann Conn, The A.M. McGregor Group PAGE C-4

■ Donald Dragony, Alex N. Sill Co. PAGE C-6

■ Scott Levin, Gojo Industries PAGE C-9

■ Joseph Dubois, Oswald Cos. PAGE C-6

■ Matt Lyon, Alliance Solutions Group PAGE C-10

■ Richard Fearon, Eaton Corp. PAGE C-7 ■ Brian Gorris, Stripmatic Products Inc. PAGE C-7

■ Harry B. Cool II, Volunteers of America of Greater Ohio PAGE C-4

■ Dave Hamrick, InfoCision Management Corp. PAGE C-8

■ Mario Danese, Visiting Nurse Association of Ohio PAGE C-4

■ John Harvan, Hospice of the Western Reserve PAGE C-8

■ Elizabeth Donaldson, De Nora Tech Inc. PAGE C-5

■ David Kuntz, Cleveland Metroparks PAGE C-9

■ Thomas Paskert, Millwood Inc. PAGE C-10 ■ Joseph Randazzo, Austen BioInnovation Institute in Akron PAGE C-11 ■ Russell Schabel, The Philpott Rubber Co. PAGE C-11 ■ Darren Wells, The Goodyear Tire & Rubber Co. PAGE C-12

FILE PHOTO/JASON MILLER

ELSEWHERE IN THIS SECTION ■ Meet Lifetime Achievement Award winner David Adante.

PAGE C-3 ■ Meet the judges. PAGES C-12, C-13 ■ Meet the nominees and past winners. PAGE C-13 ■ Check out last year’s event. A look at last year’s CFO of the Year Awards ceremony, in pictures. PAGE C-14

ON THE WEB: For profiles of past winners and coverage of the last five CFO of the Year events, visit www.CrainsCleveland.com/CFOevent.

20121015-NEWS--22-NAT-CCI-CL_--

C-2

10/10/2012

1:30 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

HILARY F. BEATREZ The Cleveland Hearing and Speech Center ◆ Cleveland

S

ome might even call Hilary F. Beatrez “a walking encyclopedia for nonprofit accounting.”

At least that’s what the director of finance and administration at the Cleveland Hearing and Speech Center is referred to as in his nomination.

“It is rare to find someone as dedicated to the nonprofit community as Hilary,” it said. “He truly conducts himself as a nonprofit ‘professional,’ adhering to the highest ethical standards while keeping the mission of CHSC at the forefront of what he does and how he does it. His nonprofit work is a true calling that is evi-

OCTOBER 15 - 21, 2012

dent throughout the activities of his life.”

Mr. Beatrez — regularly called upon by the board of directors and senior management team to provide strategic financial information, analysis and guidance — has been at the Cleveland Hearing and Speech Center since 1998.

Since arriving at the organization, which provides services to more than 10,000 annually, he has been instrumental in a capital campaign that involved the financing and construction of a new building, for which he also managed the construction team.

“Hilary is very highly regarded by statewide colleagues at the Ohio Council of Speech and Hearing Administrators and the Alliance of Community Centers for the Deaf,” the nomination said. “It is not uncommon at meetings at either of these organizations to hear ‘What would Hilary say about this?’ That question demonstrates the superior qualities

A CLOSER LOOK ■ ORGANIZATION: The Cleveland Hearing and Speech Center ■ LOCATION: Cleveland ■ INDUSTRY: Services for deaf, and hearing- and speech-impaired individuals ■ EMPLOYEES: 60 ■ 2011 REVENUE: Not disclosed Hilary brings to CHSC.” Among his other duties and accomplishments, Mr. Beatrez also implemented and maintains the CHSC’s IT system and manages human resources issues.

In addition to his work at the CHSC, Mr. Beatrez is active in working with religious organizations and other nonprofits to provide them with accounting expertise.

“Hilary is a true example of how someone with a specific area of expertise cannot only use his knowledge to help his employer, but apply his knowledge to help many other nonprofit organizations,” the nomination said.

ATTEND THE CFO OF THE YEAR AWARDS Crain’s Cleveland Business will hold its sixth annual CFO of the Year awards from 5:30 p.m. to 8:30 p.m.

Oct. 23 at LaCentre in Westlake.

The event has sold out the past two years, with more than 575 attendees each year.

At the event, networking opportuni-

ties will be followed by the announcement of the year’s winners.

For more information, or to register, visit www.CrainsCleveland.com/CFOTIX.

MICHAEL F. BIEHL Chart Industries Inc. ◆ Garfield Heights

I

t’s almost as if Michael Biehl was preparing Chart Industries for this moment.

The company’s stock price has quadrupled over the past four years, largely because the massive increase in shale gas exploration has created rising demand for the company’s equipment, which is used to produce and store hydrocarbons and industrial gases. Mr. Biehl has helped put Chart in the position to capitalize on that opportunity.

Things weren’t so rosy 10 years ago when he started at Chart. At the time, the company was just emerging from bankruptcy. Mr. Biehl, who also holds the title of executive vice president, oversaw the company’s financial restructuring, putting it on stable ground. That restructuring was followed by an initial public

A CLOSER LOOK ■ ORGANIZATION: Chart Industries Inc. ■ LOCATION: Garfield Heights ■ INDUSTRY: Manufacturing ■ EMPLOYEES: 3,783 worldwide ■ 2011 REVENUE: $794.6 million growth trajectory.” Mr. Thomas stated in the nomination.

However, Mr. Biehl doesn’t get too obsessed with numbers: He has focused on building a strong team and establishing processes that can support growth, the nomination said.

Matt Klaben, vice president, general counsel and secretary of Chart, described Mr. Biehl in the nomination as “a balanced leader” with an “unwavering commitment to good decision-making and core values.”

“Michael is a coach and colleague of the highest caliber, inspiring all of us to be our best as we tackle the challenges of business and life,” Mr. Klaben stated in the nomination.

Faith also is important to Mr. Biehl. He has been active at St. Bernadette parish in Westlake and St. Christopher parish in Rocky River.

He also is a board member at St. Joseph Academy, providing financial

“Michael is a coach and colleague of the highest caliber.”

– Matt Klaben, vice president, general counsel and secretary, Chart Industries Inc.

The Shareholders & staff at Maloney + Novotny congratulate our clients and friends for their nomination as Crain’s CFO of the Year.

Dale Cable Mario Danese Donald Dragony Joseph Dubois Gregg Floyd John Harvin Almut Zvosec

offering in 2006.

Since then, Mr. Biehl has worked to keep Chart’s balance sheet strong, helping the company raise convertible debt financing in 2011, when Europe’s sovereign debt crisis and concerns about the U.S. budget were rocking the economy. Regardless, Mr. Biehl kept the deal on track. Chart eventually was able to raise more money than it anticipated while still ensuring good terms for the company.

Mr. Biehl has been a “key partner and contributor” to the progress Chart has made since coming out of bankruptcy, said Sam Thomas, CEO, chairman and president, who joined the company in 2003.

“He has positioned the company so that we have a sound balance sheet, lower cost of capital and access to both debt and equity financing to prudently continue our

advice to the Catholic all-girls high school on Cleveland’s West Side.

Mr. Biehl — a graduate of Ohio University and the Kellogg School of Management at Northwestern University — lives in Westlake with his wife, Eileen, and his seven children: Ed, Dan, Josh, Scott, Bobby, Margaret and Andrew.

“What is truly remarkable about Michael is not his experience, management style, personality, likability, razor-sharp organization or even prudent attention to detail.

What is really remarkable is what will never be read about in an earnings statement, discussed in a board meeting, or explained at the annual shareholder’s meeting,” the nomination said. “Michael is remarkable ... because he has managed to achieve the title of CFO and take Chart to new highs all while never losing a shred of his reputation.”

Congratulations to all nominees for your outstanding accomplishments.

Largest national staffing firm headquartered in North East Ohio

Business Advisors and Certified Public Accountants Cleveland | 216.363.0100 Canton | 330.966.9400 Elyria | 440.323.3200

maloneynovotny.com

Nesco Resource is the one of the fastest growing Staffing Services Firms in the nation, with headquarters right here in the Cleveland Area. In 2012, Nesco Resource was one of only 2 large staffing firms in the country to win “Best of Staffing” recognition from both our clients and talent. Experience the Nesco difference, call one of our 7 NE Ohio offices today!

www.nescoresource.com

www.talentalley.com

20121015-NEWS--23-NAT-CCI-CL_--

10/10/2012

1:30 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

C-3

LIFETIME ACHIEVEMENT AWARD DAVID ADANTE The Davey Tree Expert Co. ◆ Kent

By GINGER CHRIST gchrist@crain.com

D

avid Adante never planned to go into finance. In fact, the CFO of The Davey Tree Expert Co. dreamed of policing the streets, not ledgers, after his graduation from the University of Akron.

“I didn’t have a burning passion, (or say), ‘I want to be a finance guy,’” Mr. Adante said. “It was accidental.”

After graduating from the University of Akron, Mr. Adante struggled to find a job either in his field — history — or in law enforcement — a lifelong dream. Then, when a co-worker at Kmart agreed to be his wife, he decided he needed to get serious about landing gainful employment.

He asked staff at the University of Akron’s business school which degree was the most difficult to obtain and which had the best chance of landing him a job. The answer — accounting — began his nearly 40-year career with numbers.

“When you’re not looking, things happen.” Mr. Adante said.

He started in 1979 as an internal auditor for Davey Tree, a Kent-based tree and lawn services company, and moved up the ranks, working as office manager and assistant treasurer before being named CFO. Mr. Adante now has worked for the company for 33 years, 27 of which he served as CFO. He led the company through the beginning stages of its employee stock ownership plan and has worked to administer both it and the daily financial needs of the company. Since 1979, the company’s stock has split five times.

“He is highly supportive of championing the employee ownership model,” said Nicholas Sucic, vice president and controller of Davey Tree.

Mr. Sucic, who for 11 years has worked with Mr. Adante, said what makes Mr. Adante so successful at his role is his firm grasp not only of the internal operations of the company but also on the outside factors influencing it.

“He has a keen focus on the greater economy and how the company is influenced by it,” Mr. Sucic said. “And then, likewise, he has always been one to influence strategic decisions and initiate changes for growth.”

Mr. Adante was part of the team that in 2002 formalized Davey Tree’s acquisition process, which has enabled the company to double its number of acquisitions in a 10year period. Where the company made 20 acquisitions in the 10 years prior to 2002, it made 39 in the 10 years following.

Since his start in the world of finance, Mr. Adante has seen the field transition from one focused on company maintenance and growth to one plagued by regulations.

“We spend a good chunk of our time doing compliance rather than growing the business,” Mr. Adante said. “It makes it less fun than it used to be.”

And that’s especially true for an employee-owned company like Davey Tree, which is a publicreporting company subject to the

provisions of the Sarbanes-Oxley Act of 2002. He estimates he spends 50% of his time on compliance issues.

To those at the start of their careers in finance, Mr. Adante offers the following words of advice: “Be open to everything.”

“No matter how trivial or boring something might seem, if you have an opportunity to take something on that the company needs help with, take it on. It will demonstrate your ability,” Mr. Adante said.

Mr. Adante in March 2013 plans to retire and travel with his wife, Laura Adante. The two live in Jackson Township with their cat, Dudley, named for Cary Grant’s character in the 1947 film, “The Bishop’s Wife.”

You expect an expert in Cash Management, Risk Management and, of course, Relationship Management.

That’s Key. We have experts in every aspect of financial services. Starting with the relationship.

We are KeyBank. Our Relationship Managers help you access a team of senior level specialists to assist you with any financial need.

We are also KeyBanc Capital Markets Inc., a full service corporate and investment bank. So when your financial needs become more sophisticated, like maximizing liquidity or managing risk, we have the expertise to help you succeed.

We’re not just the expert you deserve.

We’re what you expect.

To learn more, visit key.com/whatyouexpect.

KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC and KeyBank National Association (KeyBank N.A.) are separate but affiliated companies.

Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives.

Securities products and services: /PU '%*$ *OTVSFE t /P #BOL (VBSBOUFF t .BZ -PTF 7BMVF Banking products and services are offered by KeyBank N.A. Member FDIC and Equal Housing Lender.

Key.com is a federally registered service mark of KeyCorp. ©2012 KeyCorp. ADL4779

The Davey Tree Expert Co.’s David Adante RUGGERO FATICA

20121015-NEWS--24-NAT-CCI-CL_--

C-4

10/10/2012

1:41 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

ANN CONN The A.M. McGregor Group â—† East Cleveland

N

onprofit care providers are facing unprecedented challenges due to cuts in Medicare and Medicaid, and thus “desperate for transformative leadership,� The A.M. McGregor Group said in nominating its CFO, Ann Conn.

And Ms. Conn is that type of leader, the company says.

The provider of senior care’s revenues have tripled since Ms. Conn joined the group in 2006, to $30 million; she’s also achieved consistent, nearly breakeven operating results, limiting McGregor’s reliance on its endowment. That’s despite 60% of the group’s operating revenues coming from those two government programs.

Ms. Conn is responsible for all financials of the 500-employee McGregor, which includes a 32acre campus in East Cleveland; a satellite campus in Cleveland Heights with another 25 rooms; a

home care business, known as McGregor PACE, that operates centers in Cleveland Heights and Old Brooklyn; and the McGregor Foundation, which has doled out nearly $10 million in its 10 years of operation to aging services providers.

Ms. Conn played a crucial role in the acquisition and turnaround of the PACE unit, the nomination says.

When all that’s not enough, she’s spearheaded a collaborative effort among the CFOs at other Cleveland-area nonprofit senior care organizations, the fruits of which are bi-monthly meetings during which the group discusses solutions to the problems they all are facing.

Those relationships, her nomination said, have helped McGregor move toward its mission of making available to seniors the highest possible care. “The only way we can accommodate the critical needs of this (senior) population is to combine resources and collaborate,� the nomination said. “Ann is leading this collaboration.�

Ms. Conn also serves on the board of the highly regarded, employee-owned Evergreen Coop-

OCTOBER 15 - 21, 2012

A CLOSER LOOK â– ORGANIZATION: The A.M. McGregor Group â– LOCATION: East Cleveland â– INDUSTRY: Aging services and residential care â– EMPLOYEES: 500 â– 2011 REVENUE: $30 million

erative Laundry in the University Circle area.

The co-op allows employees to invest small amounts of their paychecks into ownership stakes in the operation. “As our Chief Financial Officer, Ann is one of the faces of McGregor. She is known both locally and beyond to raise the level of professionalism at a business meeting just by attending,� the nomination said. “The first thing people remark upon is her presence: quiet but friendly, intense but not threatening, serious but smiling, a careful listener but already well informed, bottom line-focused but mission-driven. “Her intuition and passion transcend conventional education. She is a natural leader, but always in service to McGregor’s mission of serving vulnerable seniors, never to promote herself.�

You can lean on us.

HARRY B. COOL II Volunteers of America of Greater Ohio â—† Brecksville

W

hen Harry B. Cool II started in the CFO role at Volunteers of America of Greater Ohio, the organization was a small, regional nonprofit.

In 1997, the group logged $5.4 million in revenues; now, it’s a $31 million operation with more than 600 employees that covers most of Ohio. The growth was a result of two mergers in which Mr. Cool played a key role, with the VOA of Central Ohio and the VOA of the Ohio River Valley.

And “all the while, Harry has remained true to his roots by showing integrity, ethics and accountability in all of his duties,� the nomination said. What distinguishes Mr. Cool is “his complete dedication to the organization and his ability to handle the many different tasks that have been thrown his way during his tenure.�

Mr. Cool’s implementation of a risk management program has

MARIO M. DANESE Visiting Nurse Association of Ohio â—† Cleveland

I Choose the Hospice of Choice We know how tirelessly and compassionately you care for your loved ones. Through support groups, counseling and educational services, Hospice of the Western Reserve can help you care for them and yourself. t IPVS UFMFQIPOF BDDFTT UP TFSWJDFT BOE TVQQPSU t /VSTJOH DBSF BOE JOTUSVDUJPO GPS UIF DBSFHJWFS BOE GBNJMZ t 1BMMJBUJWF DBSF GPS UIPTF OPU SFBEZ GPS IPTQJDF t 1BJO NBOBHFNFOU BOE TZNQUPN DPOUSPM t #FSFBWFNFOU TFSWJDFT Serving Ashtabula, Cuyahoga, Geauga, Lake, Lorain and Summit Counties with offices throughout, and outreach into Medina, Portage and Stark Counties.

| hospicewr.org

n his 28-year career with the Visiting Nurse Association of Ohio, Mario M. Danese has risen through the ranks of its finance department to his current position. At the same time, the home health care and hospice provider’s industry has grown from one in which it was a pioneer to one the nomination describes as saturated.

That meant he was constantly helping the organization cope with an increasingly complex market and ever-changing reimbursement methods to provide a balanced budget. He is a frequent presenter at national meetings of Visiting Nurse Association of America, the national advocate for VNA, as well as at the state level on financing for home care and hospice. “Beyond the skillful management of the resources of the VNA of Ohio, Mario contributes to the organization’s growth and profitability by helping to formulate the most successful business strategies for the ever-changing home health and hospice industry,� the nomination said. “His intimate knowledge of best practices in the industry as well as his exceptional ability to forecast budget based on trends and referral patterns has helped the VNA navigate some difficult waters in the finance area.�

Besides the typical CFO role, he

A CLOSER LOOK â– ORGANIZATION: Volunteers of America of Greater Ohio â– LOCATION: Brecksville â– INDUSTRY: Faith-based human services nonprofit â– EMPLOYEES: 610 â– 2011 REVENUE: $31 million

benefited the many programs at the VOAGO, but perhaps most important was his decision to develop retail stores in Columbus, Mansfield and Cleveland.

Developing those initiatives, along with the organization’s CEO and its board’s strategic planning committee, allowed VOAGO to achieve a unique, enviable financial position of not having to rely on government funding as much as other organizations in the same space. “This will allow the organization to thrive into the future despite the specter of significant governmental cuts,� the nomination said.

VOAGO is consistently recognized by the national Volunteers of America group for successful financial management. Meanwhile, Mr. Cool in April was honored by the United Way of Summit County for his work as a volunteer with the Hospice of the Western Reserve; he also works with the Akron-Canton Regional Food Bank.

In all, he volunteers more than 300 hours annually.

A CLOSER LOOK ■ORGANIZATION: Visiting Nurse Association of Ohio ■LOCATION: Cleveland ■INDUSTRY: Health care ■EMPLOYEES: 650 ■2011 REVENUE: $53 million helped VNA craft its strategic plan, revamp several of its business lines and serves as a “go-to person� for VNA’s CEO and executive staff. In 2008, he helped VNA’s first new CEO in years take the reins, and last year he stepped outside his CFO role to negotiate the sale and lease of its Cleveland building. He also takes part in union negotiations.

Since philanthropy is vital to such an organization, the nomination said he also has been open to finding creative ways for supporters to aid VNA. He originated an idea for VNA to allow employees to donate vacation time to philanthropy, something few companies permit.

The University of Akron graduate, who has a master’s degree in business administration from Baldwin Wallace University, also is known as a teacher at VNA. He created a Medicare 101 training program that helps staff understand the federal program’s unique structure. He relishes the chance to help both new employees and new board members learn how Medicare’s intricacies shape both their jobs and the organization.

Outside the office, Mr. Danese is a director of the Ohio Educational Credit Union, where he serves on its executive, audit and other committees.

He also works on finances as a parish leader at St. Mary of the Immaculate Conception in Avon and has taught accounting at Lorain County Community College and Cleveland State University.

20121015-NEWS--25-NAT-CCI-CL_--

10/10/2012

1:31 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

ELIZABETH A. DONALDSON De Nora Tech Inc. ◆ Concord

E

lizabeth A. Donaldson over the last five years has been part of a transition that has included her U.S. company being acquired by Milan, Italy-based Industrie De Nora to helping it this year vet and close the acquisition of another electrochemical company in Japan.

She has established herself as a key contact between the U.S. company and the Italian one that acquired it in 2005. To improve contact with the company’s U.S. and Italian financial and information technology employees, she launched a mentoring program to identify cultural issues between them. She also participated in the formation of a new international financial reporting system and a global pricing system at the company.

In the meantime, over the last year Ms. Donaldson led a team designed to improve inventory control that reduced excess inventory by $400,000 and shortened the closing process for financial statements to three days.

Ms. Donaldson heads a group of 12 financial and information technology professionals that handles

A CLOSER LOOK ■ ORGANIZATION: De Nora Tech Inc. ■ LOCATION: Concord ■ INDUSTRY: Manufacturing ■ EMPLOYEES: 203 ■ 2011 REVENUE: $97 million, part of a $515 million global concern everything from financial reporting to cash management at the company.

“Beth’s leadership has clearly assisted the rest of the management team in meeting and often exceeding budgeted expectations while minimizing additional turnover and in fact, building a new U.S. management team,” the nomination said.

“Beth’s desire and drive toward continued growth and improvement is contagious and success at De Nora is inevitable with leaders of this disposition.”

She joined De Nora’s predecessor local company 20 years ago and became manager of finance, administration and control — the equivalent of CFO — five years ago.

In addition to her University of Toledo education, she is a certified public accountant, a certified valuation professional and chartered global management accountant.

Disciplined, flexible, confident and assertive are other terms the nomination used to describe her personality.

Ms. Donaldson’s “passion and dedication to her growth as well as the growth and development of her team have created an environment of open communication and career ownership,” the nomination said.

SS&G congratulates our clients, friends and all those honored …

Michael Biehl, Chart Industries Elizabeth Donaldson, De Nora Tech, Inc. Dave Hamrick, InfoCision Management Corporation Kevin Herendeen, Fathom SEO John Huff, Ganeden Biotech Thomas McGinty, PK Management LLC Joseph Randazzo, Austen BioInnovation Institute in Akron

www.SSandG.com

1

#

Business Software

Complete. Open. Integrated.

oracle.com/goto/bizsoftware or call 1.800.ORACLE.1 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

C-5

20121015-NEWS--26-NAT-CCI-CL_--

C-6

10/11/2012

1:03 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

DONALD J. DRAGONY Alex N. Sill Co. ◆ Seven Hills

D

uring his 28 years with the Alex N. Sill Co., Donald J. Dragony often has amazed the public insurance adjusting firm’s executive leadership with his spot-on financial forecasts. In an industry filled with so many unknowns, such a feat is remarkable.

Mr. Dragony’s knack for financial forecasting is one of the reasons the firm has experienced such high profitability during his nearly three-decade stint with the company, according to the nomination.

He’s also steered the company through thick and thin. For example, during an economic slump in the early 1990s, Mr. Dragony was in charge of closing unsuccessful offices in Dayton, Houston, New York and Chicago and did so “without jeopardizing the bloodline of the company.” Profits rebounded

OCTOBER 15 - 21, 2012

shortly thereafter, according to the nomination.

“His department has learned to follow his example,” the nomination said. “His leadership style is to present the problem to all and listen to alternatives gathered. He does not operate in a vacuum.”

Mr. Dragony not only has the in-depth technical knowledge needed to be a successful CFO but also the personality required to manage relationships.

According to the nomination, Mr. Dragony generates roughly 20% of the company’s revenue by servicing clients in need of consulting services on insurance-related business interruption claims for the policyholder. He’s received numerous recommendation letters from clients over the years for his exemplary service.

Well-known brokers from around the city and country often call on Mr. Dragony for advice. He’s offered numerous expert reports and testified in court at least 10 times. He also maintains all of his licensures far above the minimum requirements and teaches others through seminars or whenever asked.

Mr. Dragony’s files also are meticulously organized and his litigation support files are, according to the nomination, unparalleled.

“It is his dedication and determi-

A CLOSER LOOK

JOSEPH DUBOIS

A CLOSER LOOK

■ ORGANIZATION: Alex N. Sill Co. ■ LOCATION: Seven Hills ■ INDUSTRY: Public insurance adjusting for commercial property policy holders ■ EMPLOYEES: 35 ■ 2011 REVENUE: $6.3 million

Oswald Cos. ◆ Cleveland

■ ORGANIZATION: Oswald Cos. ■ LOCATION: Cleveland ■ INDUSTRY: Insurance and financial services ■ EMPLOYEES: 250 ■ 2011 REVENUE: $50 million

“His department has learned to follow his example. His leadership style is to present the problem to all and listen to alternatives gathered.

He does not operate in a vacuum.”

– CFO of the Year Award nomination for Donald J. Dragony nation to only do a job well, or not do it at all,” the nomination said.

Mr. Dragony’s only weakness, if one could characterize it as such, is his inability to say “no” to a request for help at the workplace — an attribute that carries over to his personal life. Mr. Dragony volunteers for several organizations, including the Susan G. Komen Foundation, St. John Medical Center and St. Bernadette’s Church in Westlake.

W

hen Joseph Dubois arrived at Oswald Cos. four years ago, company officials say the insurance brokerage firm lacked financial discipline.

While the organization had tremendous success in terms of organic revenue growth, profitability was low in comparison to the firm’s peers.

But thanks to process improvements Mr. Dubois put in place, Oswald Cos. now has a much more balanced approach to growth and profitability.

Mr. Dubois, for example, established a process that institutes a more disciplined approach that matches the firm’s needs with its budget. Also, he developed a protocol that put more accountability on the individual in terms of the firm’s travel budgets. He also was instrumental in engineering two acquisitions that, according to the nomination, increased shareholder value.

“The efficiencies gained through continuous improvements have permitted the finance department to take over other responsibilities that have historically been bore by our client-facing employee-owners, allowing Oswald to create additional growth and supervisory opportunities for the young leaders on the finance team as well as allowing our client-facing employee-owners to focus on the needs of our clients,” Denise Tapp, Oswald’s controller, said in the nomination.

Exposure

Congratulations to all

“Joe’s teamwork and genuine concern for strengthening the legacy of (Oswald Cos.) ... has proven invaluable.”

– Marc Byrnes, chairman and CEO, Oswald Cos. As a member of Oswald’s executive leadership, Mr. Dubois has been a team player and a tireless employee-owner, according to the nomination. His financial prowess has been vital to the firm’s ability to remain independently owned.

“Joe’s teamwork and genuine concern for strengthening the legacy of a 120-year-old company in less than four years has proven invaluable to our success, present and future,” said Marc Byrnes, Oswald’s chairman and CEO, in the nomination. “We, Oswald Cos., are very blessed and fortunate to have Joe Dubois serve as our CFO.” Beyond his work at Oswald, Mr. Dubois serves on two nonprofit boards — Vocational Guidance Services, an organization that serves people with disabilities and other barriers to employment, and Junior Achievement of Greater Cleveland, a group that educates young people about business, economics and personal finances.

Professionally, he is a member of Financial Executive International, the Ohio Society of CPAs and the American Institute of CPAs.

Expertise

Results

In the past 12 months, Marcus & Millichap Cleveland has closed 52 multifamily transactions valued at more than $140 million.

2012 nominees and winners

BELOW IS A SAMPLING OF OUR RECENT LISTINGS

The partners at eSearch have been helping Northeast Ohio CFOs manage their accounting/finance supply chain since 1998

x

Executive Search

x

Permanent Placement

x

Temp to Perm

x

Interim Staffing

x

Consulting

Shaker Heights, OH Marlboro & Devonshire Apartments 18 units r $715,000 Agent: Ben Baker

Cleveland, OH Breakwater Towers 112 units r $3,355,000 Agents: Michael Barron, Daniel Burkons, Joshua Wintermute

To Access the Investment Market, Contact the Market Leader.

Michael Barron Vice President Investments (216) 264-2016

Daniel Burkons Vice President Investments (216) 264-2018

mbarron@marcusmillichap.com

dburkons@marcusmillichap.com

Benjamin Baker Vice President Investments (216) 264-2015

Joshua Wintermute Senior Associate (216) 264-2028

Michael L. Glass Vice President/Regional Manager (216) 264-2050

bbaker@marcusmillichap.com jwintermute@marcusmillichap.com mglass@marcusmillichap.com

6100 Rockside Woods Blvd.

www.esearchjobs.com

Independence, OH 44131

216Ͳ642Ͳ2345

Offices Nationwide

www.MarcusMillichap.com

20121015-NEWS--27-NAT-CCI-CL_--

10/11/2012

1:04 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

RICHARD H. FEARON Eaton Corp. ◆ Cleveland

R

ichard Fearon is a busy guy. For one, he’s not just CFO at Eaton, a giant manufacturer of products that regulate power.

He also provides leadership for all sorts of functions at Eaton, ranging from accounting and information systems to internal auditing and investor relations. He plays a big role in the overall strategic planning process at Eaton.

That’s no small task, especially these days: Eaton has acquired 60 companies since he was named executive vice president and chief financial and planning officer in 2002.

Mr. Fearon — who moved from executive vice president to vice chairman in January 2009 — has been “a key leader” in those deals, the nomination said. That includes the pending acquisition of electrical equipment supplier Cooper Industries plc of Dublin, Ireland, an $11.8 billion deal that when closed will be the largest acquisition in Eaton’s 101-year history. The two companies had sales totaling $21.5 billion in 2011.

He has developed an organization that “functions globally and is capable of handling multiple complex deals simultaneously,” the nomination said. He’s always on the lookout to make sure acquisition targets are up to snuff.

“Due to his nearly 30 years of international senior finance and strategic corporate development experience, Rick has been a key adviser to the CEO and Board on key acquisitions that have contributed to Eaton’s global growth,” the nomination said.

C-7

A CLOSER LOOK

BRIAN GORRIS

A CLOSER LOOK

■ ORGANIZATION: Eaton Corp.

■ LOCATION: Cleveland ■ INDUSTRY: Manufacturing ■ EMPLOYEES: 73,000 worldwide ■ 2011 REVENUE: $16 billion

Stripmatic Products Inc. ◆ Cuyahoga Heights

■ ORGANIZATION: Stripmatic Products Inc. ■ LOCATION: Cuyahoga Heights ■ INDUSTRY: Manufacturing ■ EMPLOYEES: 22 ■ 2011 REVENUE: $5 million

“Rick works tirelessly to ensure each deal meets or exceeds all performance metrics,” the nomination continued.

Mr. Fearon played a key part in helping Eaton get through the recession. He and the rest of the company’s management team quickly cut costs and re-engineered some business processes when the economy went south, which helped Eaton maintain its profitability. They did so, however, while still investing in research and development, which they considered key to helping the company rebound from the recession.

He does a lot of work outside of Eaton, too: He serves on the board of directors at PolyOne Corp. of Avon and for several years has served on the Ohio Third Frontier Commission, which oversees a large economic development program designed to stimulate the state’s economy through investments in technology.

In addition to other involvement, he’s on the board of the Cleveland Museum of Art, the PlayhouseSquare Foundation and Hawken School, and he’s chairman of the finance committee on all three of those boards. He also served as co-chairman of the 2007 Pacesetter Committee for the United Way of Greater Cleveland.

“While Rick was honored with (CFO of the Year honors) in 2007, his accomplishments since then have continued to be stellar for Eaton, the nomination said. “Rick is a dedicated finance leader who, through his counsel and performance, has earned the respect and confidence of the Eaton Board of Directors and of company senior management.”

B

rian Gorris knows the meaning of lean operations.

Mr. Gorris, CFO of Stripmatic Products in Cuyahoga Heights, a stamper for the automotive industry, has an administrative staff of ½. But you wouldn’t know it.

The nearly 50-year veteran of accounting is considered an “unsung hero” at Stripmatic, where he has worked for 13 years.

“Brian works tirelessly to make everything, every place, everyone better always,” the nomination said.

Even though he is of retirement age, he still arrives daily at work at 6 a.m. and works 10-hour days at the 25-employee company.

During his time at Stripmatic, he guided the company through the end of the recession, helping to keep it profitable and gain market share.

Then, in July 2011, Mr. Gorris helped the company survive a move forced by involuntary conversion (the state took the company’s property by eminent domain to build a new Inner Belt bridge through downtown). Stripmatic didn’t lose any employees or customers and finished the year in the black.

Stripmatic now is experiencing a 25% sales growth in 2012.

And, over the years, he has acted as a mentor to Stripmatic’s husband-and-wife ownership team.

Yet despite his mastery of this craft, Mr. Gorris remains humble.

“Brian (is) one who promotes and heralds others and not himself, and one who is comfortable to work in the background.”

– CFO of the Year Award nomination for Brian Gorris “While his financial, analytical and management skills and business acumen have been clearly demonstrated and documented, what makes Brian Gorris unique in his profession is his selfless and humble nature, one who promotes and heralds others and not himself, and one who is comfortable to work in the background, yet has his hand firmly on the corporate tiller,” the nomination said.

In addition to his work responsibilities, Mr. Gorris remains busy elsewhere in the financial world. He serves on the North Olmsted Planning Commission; the Precision Metalforming Association’s audit committee; Clark Consolidating Corp.’s board of directors; Stripmatic’s board of directors; and is his parish’s treasurer.

Outside of the office, Mr. Gorris is active in the community. He helps at soup kitchens and homeless shelters; initiated and maintains a charitable fund; is a Eucharistic minister; volunteers at his home parish; runs fundraisers for a parochial grade school; and has coached a number of recreational baseball teams.

CONGRATULATIONS to Da Davey Chief Financial Officer, Executive Vice President and Secretary, David Adante, recipient of the CFO Lifetime Achievement Award.

Da Thank you, David, for your financial expertise and dedication throughout the years. Our tree couldn’t grow without leaders like you!

We extend additional congratulations to all CFO of the Year nominees.

W We would like to thank Crain’s for their leadership role in recognizing ac CFO accomplishments and other initiatives that are beneficial to the Northeast Ohio business community.

www.davey.com • 800.445.8733

20121015-NEWS--28-NAT-CCI-CL_--

1:46 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

DAVE HAMRICK InfoCision Management Corp. ◆ Akron

D

ave Hamrick has answered the call now for six years for InfoCision Management Corp., and he has made and saved the company money doing it.

This year, the large call center operation is on track for record sales and profits, thanks in large part to Mr. Hamrick’s efforts. The 4,200-employee company posted gross revenues of $174 million in 2011.

Mr. Hamrick has upgraded InfoCision’s financial systems and procedures, reducing expenses, improving management information and all but eliminating the audit adjustments that predated his arrival.

“He has built a departmental team that has elicited great confidence from all who work with them,” the nomination said.

Under Mr. Hamrick’s watchful eye, InfoCision’s accounting team has sliced in half the time it takes them to bill to four days from eight and has decreased the closing time of the financials by 75%.

Mr. Hamrick’s efforts have included the development of a more effective use of costing data, which created a more specific and detailed analysis for clients on an individual basis, allowing InfoCision to determine where to drive the highest volume of calls for each client, maximizing gross margins.

Additionally, Mr. Hamrick was behind the utilization of real-time reporting in all facets of the company, which has enabled InfoCision to react quickly to the changing needs of the business environment.

When InfoCision’s founder and primary decision maker, Gary Taylor, fell ill in 2009, Mr. Hamrick not only guided InfoCision through tough economic times, but also assumed the added responsibility for the financial and operational management of several outside businesses owned by the Taylor family.

He continues to coordinate all financial affairs of Mr. Taylor’s foundation, personal wealth and financial management, according to the nomination.

“Three years ago, during the perfect storm, comprised of a

OCTOBER 15 - 21, 2012

A CLOSER LOOK

JOHN HARVAN

A CLOSER LOOK

■ ORGANIZATION: InfoCision Management Corp.

■ LOCATION: Akron ■ INDUSTRY: Direct marketing ■ EMPLOYEES: 4,200 ■ 2011 REVENUE: $174 million

Hospice of the Western Reserve ◆ Cleveland

■ ORGANIZATION: Hospice of the Western Reserve ■ LOCATION: Cleveland ■ INDUSTRY: Health care ■ EMPLOYEES: 950-plus ■ 2011 REVENUE: $98 million

plummeting economy, the call center market’s experiment with offshore locations, the collapse of the credit markets, and the tragic illness of the company founder and primary decision maker, Gary Taylor, InfoCision CFO Dave Hamrick not only guided InfoCision through the narrow channel to more stable financial waters, but also took on the additional responsibility for the financial and operational management of several outside businesses owned by the Taylor family,” the nomination said.

“Today, Dave continues to provide solid financial guidance as the economy and markets continue on their roller coaster ride.”

In addition to Mr. Hamrick’s quarterbacking at InfoCision, he’s coached baseball, wrestling and football for various organizations, including the city of Green and Ohio Storm Baseball, for which he is head coach.

A

s the Hospice of the Western Reserve has evolved into the largest hospice in Ohio and one of the largest in America, John Harvan has kept pace, overseeing the evolution of its financial infrastructure.

Chief financial officer since 1991, Mr. Harvan has provided for the upgrade of systems and staff to meet the financial and informational needs of the growing organization, whose budget has climbed since he joined it from $8 million to $98 million.

For one, he initiated and oversaw the implementation of significant advances in the nonprofit’s accounting and financial service capabilities, including advances in automation and procedural innovation.

Over the years, he also has served as principal liaison and manager for three bond issuances, which ultimately bought the local hospice the construction of its Hospice House on Lake Erie at the end of East 185th Street, shoreline development at that site and the land and construction of the Ames Family Hospice House in Westlake, which opened in June.

Mr. Harvan “has steeped himself in the knowledge of health care policy, Medicare, Medicaid and private insurance,” and has adapted to the changes going on in the local, state and federal health care arenas to help position Hospice of the Western Reserve to be responsive to the demands of patients, referral

sources and payers for services provided, the nomination said.

His success is evidenced by outside auditors’ consistent, unqualified audit opinions year to year, as well as the limited number of adjusting entries and limited or no internal control recommendations from them, too.

According to the nomination, Mr. Harvan’s initial interest in serving Hospice of the Western Reserve stemmed from his commitment to its mission of assuring that comfort care be available to all who may benefit from it.

“He came to the organization with a sense of purpose, has embraced our hospice mission and demonstrates a passion for it,” the nomination said.

During his time with the organization, Mr. Harvan has played a pivotal role in incorporating additional counties into its service area, helping to grow it to its current status of 98th percentile in the nation for program size and patients served.

Beyond ensuring that the organization’s financial capabilities grew with it, Mr. Harvan also shepherded the growth of Hospice of the Western Reserve’s endowment from nothing to $25 million.

Mr. Harvan is the local hospice’s representative to, and board member of, the Hospice Alliance of Ohio, as its board chair, and also is the CFO Forum leader of National Hospice Work Group, a networking organization of the 20 leading hospice organizations in the United States.

UPCOMING EVENTS Ideas at Dawn breakfast series

Forty Under 40

Crain’s continues its 2012 breakfast panel discussions with an event centered around intangible assets on Oct. 31. For more information or to register, visit www.crains cleveland.com/section/breakfast.

Sterling Jewelers congratulates all of the 2012 CFO of the Year Award finalists and winners.

Crain’s again this year identifies and profiles 40 of the region’s brightest young business leaders with this annual section. To register for this year’s event and read about past classes, visit www.crainscleveland .com/section/40under40.

business banking CUSTOMIZED

C-8

10/11/2012

Products & Services Include: Commercial Real Estate Commercial Line of Credit Commercial Letter of Credit Business Checking Business Debit Cards

Free Internet Banking Free Online Bill Pay Remote Deposit Capture Mobile Banking eStatements Payroll

CarrieStackhouse AVP, Commercial Lending

cstackhouse@cortland-banks.com

www.cortland-banks.com/Stackhouse For more information: 330.717.7472

20121015-NEWS--29-NAT-CCI-CL_--

10/11/2012

1:47 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

DAVID KUNTZ Cleveland Metroparks ◆ Cleveland

I

f you think being the top fiscal officer of the Cleveland Metroparks is just a walk in the financial park, consider that the organization makes more money, and employs more people, than many small to midsize businesses in the region.

In 2011, the Metroparks, which employs about 860 people, had revenue of more than $82 million.

As treasurer, David Kuntz manages all of the park district’s financial affairs, including long- and short-term budgets, cash receipts, auditing, financial reporting, purchasing, disbursements, fixed assets, information systems and payroll.

“He is the quintessential ‘nice guy’ who shouldn’t finish last,” the nomination said.

The results he gets are nice too — because if you think the Metroparks are clean, you should see their books. Those who have seen them have had nice things to say.

“Under Kuntz’s leadership as treasurer, Cleveland Metroparks achieved its fourth consecutive year (2007-2010) of a perfect state audit (without even a Management Letter comment). This track record had not been achieved before in the Park District’s history,” the nomination said.

“Also, Cleveland Metroparks was the only governmental agency in Ohio and only park district in the United States to receive the National Purchasing Institute’s 2011 Achievement of Excellence in Procurement Award. In addition, the Park District received the National Government Finance Officers Associations Distinguished Budget Presentation Award for the 19th consecutive year,” it added.

Since starting with the Metroparks, Mr. Kuntz has led a number of efforts: the development of an internal audit function; enhancement of revenue procedures for a variety of business types, including eight golf courses, outdoor educational programs, nature book stores and a zoo; implementation of financial procedures mandated by the Governmental Accounting Standards Board; establishment of an audit committee; development of a procurement card program; and institution of an online accounting manual.

While good financial stewardship is important at a for-profit company, it can be even more important at a government entity.

His “attention to accounting procedures ensures that the financial integrity of Cleveland Metroparks remains unchallenged and that there is never a question in the voting public’s mind that the Park District uses its resources wisely and ethically,” the nomination said.

A CLOSER LOOK ■ ORGANIZATION: Cleveland Metroparks ■ LOCATION: Cleveland ■ INDUSTRY: Governmental services, parks and recreation ■ EMPLOYEES: 860 ■ 2011 REVENUE: $82.2 million

SCOTT LEVIN Gojo Industries ◆ Akron

S

cott Levin has been CFO of Akron-based Gojo Industries for less than three years, but in that time he’s already had an impact at the maker of hand-cleaning and sanitizing products.

Mr. Levin stepped in right as Gojo was in the midst of its acquisition of the Purell consumer product line.

“Scott was intricately involved in the transaction, required to quickly understand the process and, specifically, the financing needs of and implications to the company ongoing,” the nomination said.

“Working with financing sources, his creativity was noted in developing the financing model for an excellent outcome for the company.”

After that, Mr. Levin kept improving Gojo’s internal systems and practices, the nomination said.

“Throughout the past two years, Scott has worked with his teams to develop and implement many best financial practices: weekly profit and loss and inventory monitoring; weekly treasury cash forecasting; financial reporting packages for senior management and for Gojo’s board; deep dive analysis; and ongoing management of cost pools,” the nomination said. “He works with the various teams for continuous improvement not only in these reports, but also in existing processes

for cost reduction, budgeting and performance reporting.”

All CFOs are expected to be heavily involved in managing their company’s finances, but Mr. Levin’s influence extends well beyond any spreadsheet. He’s also involved in succession planning, reorganizing functions such as legal and information technology — he’s even heavily involved in Gojo’s sustainability initiatives.

“A genuine and thoughtful leader with high expectations, Scott Levin is able to deliver a consistently strong performance,” the nomination said. “His education and experience, which consist of both executive management and finance positions, make him well-rounded in many skill sets beyond accounting.”

Mr. Levin’s soft skills are also formidable, and he’s gained the

C-9

A CLOSER LOOK ■ ORGANIZATION: Gojo Industries ■ LOCATION: Akron ■ INDUSTRY: Manufacturer of hand-hygiene and skin care products ■ EMPLOYEES: 1,200-plus ■ 2011 REVENUE: Undisclosed confidence of both those who report to him and the company’s senior management with his communication skills and mentoring abilities.

Like most good leaders, Mr. Levin’s contributions are not limited to his own company.

Outside of Gojo, he also finds time to do things like serve on the board of Akron Children’s Hospital, where he helped with a $200 million capital campaign, and is treasurer of Temple Beth Shalom in Hudson.

Congratulations to

TOM PASKERT and all of the 2012 CFO of the Year Finalists From the Millwood Family

Millwood Inc. / Liberty Technologies | 877-891-9663 | millwoodinc.com

20121015-NEWS--30-NAT-CCI-CL_--

C-10

2:53 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

MATT LYON Alliance Solutions Group ◆ Independence

I

10/11/2012

t sounds like one of those apocryphal stories that exaggerate to prove a point. But this story, attributed to Aaron Grossman, Alliance Solutions Group’s CEO, merits retelling.

One morning, Matt Lyon, chief financial officer of Alliance in Independence, came into work only to find that his office door was locked and he’d forgotten his key.

“While most employees would use this as an excuse to go home, Matt climbed onto the desk of the adjacent office, went up through the ceiling, crawled to the area above his office, and lowered himself through the ceiling into his office chair,” the nomination said. “Just like any other workday, he was determined to achieve the goals he set out to reach that day.”

The nomination describes a long list of goals Mr. Lyon has achieved

OCTOBER 15 - 21, 2012

at Alliance, a full-service recruitment firm. During his eight years as CFO, Mr. Lyon has transformed the financial and administrative operations in a time of rapid technological change as the company has grown from $20 million in revenue in 2009 to a projected $50 million in 2012.

“Throughout his career, he has taken the initiative in tackling new challenges and getting involved with decisions/functions at all levels of the organization, assuming the role of a business leader rather than just defining his job in a financial sense,” the nomination said.

“Matt owns his position and works independently to create value within his position, while looking for new ways to improve all aspects of the company.”

A Notre Dame University graduate with an MBA from Xavier University, Mr. Lyon’s achievements include implementation of customer relationship management software and the adoption of electronic payroll and customer payment systems.

He also has helped build various departments including human resources, information technology, marketing, operations and distribution, purchasing, sales and testing.

To help the CEO better manage the business, Mr. Lyon developed budgeting and financial reporting processes that offer top manage-

A CLOSER LOOK ■ ORGANIZATION: Alliance Solutions Group ■ LOCATION: Independence ■ INDUSTRY: Recruiting ■ EMPLOYEES: 52 ■ 2011 REVENUE: $31.7 million

“(Matt) has taken the initiative in tackling new challenges ... (and) owns his position and works independently to create value within his position, while looking for new ways to improve all aspects of the company.”

– CFO of the Year Award nomination for Matt Lyon ment a detailed analysis of the company’s financial operations.

More recently, Mr. Lyon has played an integral part in a large financial change within the company.

Then, when the new CEO decided to buy out the majority shareholders of Alliance, Mr. Lyon not only helped find financing, he took an equity stake in the business.

Expert Financial Leadership for Expert Home Healthcare and Hospice The Visiting Nurse Association of Ohio congratulates Mario Danese, Chief Financial Officer, on his recognition as a finalist as a Crain’s Cleveland Business CFO of the Year - Non-Profit.

Mario M. Danese, C.P.A. Chief Financial Officer

Mario’s dedication, leadership and vision have been an essential component of the continued success of the VNA as the experts in home healthcare and hospice throughout Northeast and Central Ohio.

THOMAS R. PASKERT Millwood Inc. ◆ Vienna

W

hen Thomas R. Paskert led the executive team at Millwood Inc. through a rigorous long-range planning process in 2004, the maker of pallets and other industrial packaging systems had sales of $60 million a year, and one customer accounted for nearly 65% of those sales.

Now, after four acquisitions, sales are on target to hit $200 million in 2012, spread across a much broader customer base.

Ron Ringness, a partner and executive vice president of sales, marketing and technology, lauds the work of Mr. Paskert, the company’s CFO and executive vice president.

“Our controls and systems prepared us for the ups and downs of the economy,” said Mr. Ringness in the nomination. “In the last few years, our reserves and access to credit have allowed us to make opportunistic buys of raw materials, to close on acquisitions and to handle the extended terms required by our growing portfolio of national accounts.”

Now, the goal is to double current sales by 2015 and Mr. Paskert, CFO and executive vice president, is playing a key role.

The nomination said the financial reporting systems Mr. Paskert installed have given Millwood’s division managers access to accurate and timely information about the performance of sales regions, prod-

A CLOSER LOOK ■ ORGANIZATION: Millwood Inc. ■ LOCATION: Vienna ■ INDUSTRY: Industrial packaging ■ EMPLOYEES: 1,300 ■ 2011 REVENUE: $190 million uct segments and sales programs, such as a program that targets national accounts with Fortune 500 and 1000 companies.

With the company’s growth — in the past year, it acquired a pallet manufacturing plant in Kentucky and a New Jersey distributor of packaging machinery and supplies and now has 26 locations in 12 states — Mr. Paskert standardized the financials of each of the business units. As a result, the company can make the best case possible to its banking partners as it seeks the capital it will need to continue to grow.

“Tom is able to effectively put together the financial information that a lender needs to fully understand how a transaction will impact sales, cash flow and debt service capabilities,” said David Dobstaff, a senior vice president at First National Bank in Youngstown, in the nomination.

Mr. Paskert launched his business career in the aerospace and automotive divisions of TRW Inc. While at TRW, Mr. Paskert served on the President’s Commission on Executive Exchange during the Reagan administration. With the commission, he worked on the voluntary agreement that limited the number of Japanese autos imported into the United States.

Mr. Paskert has volunteered his time and organizational skills to the American Red Cross, Hattie Larlham Foundation and the Northeast Ohio Adoption Services. He has been a member of the Kent State University College of Business Alumni Council.

Congratulations, David.

When it comes to conserving our resources, you’re a natural.

Thank you, Mario. We are proud of you!

Cleveland Metroparks is proud to congratulate our own David Kuntz, nominated for CFO of VISITING NURSE ASSOCIATION OF OHIO

Your health at home Ó£È Î£ £{ääÊÊÊÊUÊÊÊÜÜÜ°6 ° À}

the Year. David, your hard work and attention to detail are truly an inspiration to us all.

20121015-NEWS--31-NAT-CCI-CL_--

10/11/2012

2:51 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

JOSEPH M. RANDAZZO

A CLOSER LOOK

Austen BioInnovation Institute in Akron ◆ Akron

J

oseph Randazzo’s title is CFO, but his responsibilities at the Austen BioInnovation Institute in Akron extend well beyond tending to the numbers.

In 2011, following the departure of the nonprofit’s chief administrative officer and director of information technology, Mr. Randazzo “responded to the needs of the organization by taking lead of the IT department, human resources, administration and various other roles,” according to the nomination.

In adopting those duties, Mr. Randazzo “not only became responsible for the management of various teams at ABIA, but he also gained the huge responsibility of managing the completion” of the organization’s $13.5 million, 40,000-square-foot headquarters and Center for Simulation and Integrated Healthcare in downtown Akron, the nomination stated.

Mr. Randazzo already was handling the complex financials for the new building, but the new roles meant he also “undertook management of construction and design teams, and the logistics of moving ABIA’s 30-person team into a new space,” according to the nomination.

And he was doing this less than a

■ ORGANIZATION: Austen BioInnovation Institute in Akron ■ LOCATION: Akron ■ INDUSTRY: Medical devices, education ■ EMPLOYEES: 25 ■ 2011 REVENUE: $6 million

year into his tenure as CFO. “Thanks to his careful management of these processes, ABIA seamlessly moved into its new home on time and tracking under budget,” the nomination stated.

Upon his arrival at ABIA in 2010, Mr. Randazzo “began laying the foundation for sound financial management, designing the finance department, policies and protocols from the ground up.” In his two years as CFO, Mr. Randazzo “has introduced the management team to financial planning such as zerobased budgeting, cash flows and time allocation, and he continues to help guide the organization toward a healthy and sustaining financial future.”

Mr. Randazzo also is valued for “asking the hard questions and encouraging his colleagues to make decisions that are not only fiscally sound but also benefit ABIA, and the community, in the long run.”

Outside work, Mr. Randazzo helps train the next generation of business leaders through his involvement with the Women’s Entrepreneurship Program, held each spring at the University of Akron to offer financial guidance to early stage businesses.

He also is an active member of the Healthcare Financial Management Association and has served as a United Way volunteer.

RUSSELL SCHABEL The Philpott Rubber Co. ◆ Brunswick

R

ussell Schabel clearly did not become a CFO so he could sit in a corner office all day.

At Philpott Rubber Co., a 123-yearold company that, among other things, provides polymeric fluids in the Marcellus and Utica shale basins, Mr. Schabel regularly calls on customers.

“He meets frequently not only with his financial department counterparts at our customers’ facilities, but also with plant management, engineering and purchasing personnel,” according to the nomination.

The in-person meetings with the CFO “ensure that customers understand they have the highest level of attention,” the nomination stated, and they help to personalize “what is normally a mundane interaction between the accounting groups.”

There’s another major, protective benefit: “If, unfortunately, the customer falls on hard times, Russ’ relationships … will likely place Philpott in a position to receive more timely and accurate information regarding the customer’s financial status and provide the forum for helping the customer through its problems.”

Five years ago, Philpott began transforming from a regional player to a global polymer services provider, and Mr. Schabel played a key role in that process.

Recognizing the enormous potential of the shale market, Mr. Schabel “worked closely with Philpott’s CEO to identify, secure, market and deliver a novel, environmentally friendly polymeric liquid, which is used to ‘cleanse’ a horizontal gas or oil well after it has been hydraulically fractured,” the nomination stated.

To enter the shale market fully, Philpott last February formed a subsidiary, Philpott Energy and Transportation Co. (PETCO). In addition to his CFO role, Mr. Schabel serves as PETCO’s vice president and general manager, overseeing marketing, sales and field operations. The nomination stated that within five months of its formation, PETCO had increased Philpott’s overall sales by 12%.

Philpott’s growth plan “includes

A CLOSER LOOK ■ ORGANIZATION: The Philpott Rubber Co. ■ LOCATION: Brunswick ■ INDUSTRY: Polymer molding, distribution, assembly, fabrication and fulfillment ■ EMPLOYEES: 28 ■ 2011 REVENUE: $18.3 million

“Russ’ relationships ... will likely place Philpott in a position to receive more timely and accurate information regarding the customer’s financial status.”

– CFO of the Year Award nomination for Russell Schabel both organic and acquisition components,” according to the nomination. As part of that, Mr. Schabel “negotiated a $5 million line of credit at extremely favorable rates, even though there is no current demand for cash.”

Mr. Schabel also is a member of the board of directors of the Medina County Port Authority, and is on the business advocacy committee of the Council of Smaller Enterprises.

If you can help bring a meeting to Cleveland,

we’d like to meet you.

W

ith $2 billion in visitorrelated infrastructure

The The The The

relationships. expertise. financing. personal touch.

development,

Cleveland is becoming a dynamic meeting destination.

Jack Schron, president of locally owned and operated Jergens, Inc., will showcase Cleveland by bringing his company’s 2013 national meeting home. And, Positively Cleveland is here to help.

www.BellwetherEnterprise.com

Whether you’re a professional who has a hand in your

The Premier Source for Commercial & Multifamily Real Estate Capital

organization’s meeting planning or you’re simply

FOR MORE INFORMATION CONTACT:

a resident full of civic pride,

Jim Doyle, Jr. | Senior Vice President | 216-820-4502 | jdoyle@BellwetherEnterprise.com

Positively Cleveland can VISION

KNOWLEDGE

PEOPLE

support you – and even reward you – for bringing a meeting home to Cleveland. Visit ClevelandChampions.com.

WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.”

“Why not Cleveland?”

- Jack Schron, president of Cleveland-based Jergens, Inc.

C-11

20121015-NEWS--32-NAT-CCI-CL_--

C-12

10/11/2012

3:18 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

DARREN R. WELLS The Goodyear Tire & Rubber Co. ◆ Akron

D

espite rough economic waters, Darren R. Wells, executive vice president and chief financial officer, has managed to keep The Goodyear Tire & Rubber Co. on course.

Goodyear delivered record results

OCTOBER 15 - 21, 2012

in 2011. In the second quarter of 2012, the company reported record earnings for its North American Tire business and announced that the unit will achieve its 2013 earnings goal of $450 million in 2012.

“Darren has significantly improved the company’s financial position through the recent refinancing of the company’s U.S. and European debt, issuance of preferred stock and the sale of the company’s wire business and Latin American farm tire business,” the

CFO OF THE YEAR JUDGES JIM BOLAND Jim Boland served with the Cavaliers Operating Co. as president and CEO and as vice chairman.

A native of Cleveland, he had spent the previous 34 years with Ernst & Young, joining the company after serving two years as an officer in the U.S. Army. He became a partner in 1976 and served as a member of the firm’s management committee from 1988 to 1997.

He also had operating responsi-

bility as vice chairman and regional managing partner of Ernst & Young’s Central Region from 1988 to 1996.

Mr. Boland also has served on the boards of the Ohio Business Roundtable, Cleveland Tomorrow, Leadership Cleveland, the Cleveland Health Education Museum, University Circle Inc., Hawken School, Bluecoats, the Great Lakes Science Center and United Way Services’ cabinet.

He also is a trustee of the Harvard

nomination said. “As CFO, Darren has driven substantial progress towards achieving the company’s stated three-year goal of $1 billion in cost savings by the end of 2012.”

Among his other accomplishments, Mr. Wells was instrumental in developing Goodyear’s Strategy Roadmap with CEO Richard Kramer and the senior leadership team, and he introduced a global initiative to enhance the company’s industry-leading working capital management.

Business School Club of Cleveland. A John Carroll University graduate, he has been a member of the business school’s advisory board, public policy council and capital campaign committee. He received John Carroll’s Alumni Medal, which is given for distinguished service to a profession, exemplary family and personal life and contributions to the community.

He serves or has served on the boards of The Sherwin-Williams Co., Invacare Corp., The Goodyear Tire and Rubber Co., International Steel Group and DDR Corp., as well

The McGregor Group is Proud of our Chief Financial Officer Ann Conn

In fact, according to the nomination, through its ongoing focus on working capital and cash flow, the company has been able to support significant capital investments, including a new factory in China and expansion in Latin America.

He also has worked to build the capability of the company’s finance team through its focus on succession planning and associate development.

There have been other efficiencies as well: Goodyear is the first U.S. company to conduct realtime joint tax audits with the IRS and Canadian Revenue Authority.

as several private companies. He also serves as chairman of JobsOhio and serves on the board of the Center for Global Business Studies in Washington, D.C. He and his wife, Muffy, have six children and 15 grandchildren.

CHARLES COOLEY Charles P. Cooley was CFO of The Lubrizol Corp. from 1998 until he retired in 2011 following Berkshire Hathaway’s purchase of the company.

Lubrizol, with annual revenues of approximately $6 billion, is a specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets.

The company has approximately 7,000 employees and facilities in 27 countries. At Lubrizol, Mr. Cooley had global responsibility for all aspects of its finance function and also oversaw its corporate development and strategic planning activities.

Prior to joining Lubrizol, Mr. Cooley held positions of increasing responsibility in finance at Atlantic Richfield Co. for 15 years, including treasury, capital markets, corporate development and operating segment financial management. Mr. Cooley began his career in the National Banking Division of Manufacturers Hanover Trust Co. following completion of the bank’s management training program.

Mr. Cooley received a bachelor’s degree in philosophy from Yale University in 1978 and an MBA from the Tuck School of Business at Dartmouth College in 1983.

He has been a director of Modine Manufacturing Co. since

A CLOSER LOOK ■ ORGANIZATION: The Goodyear Tire & Rubber Co. ■ LOCATION: Akron ■ INDUSTRY: Manufacturing ■ EMPLOYEES: 73,000 ■ 2011 REVENUE: $22.8 billion “Darren is a progressive leader and trusted adviser to CEO Rich Kramer and Goodyear’s business unit presidents, and has been instrumental in shaping the company’s vision and strategies,” the nomination said.

2006, and he has been a director of KeyCorp since 2011.

He serves as chairman of the board of Hawken School, among other civic and community leadership roles.

PATRICIA GAUL Patricia Gaul is senior vice president of business and general counsel for PlayhouseSquare, a nonprofit with a $65 million budget.

Ms. Gaul joined PlayhouseSquare in 1984 following work in the U.S. Senate offices of Sens. Edward Kennedy and Bill Bradley. She is a graduate of Cleveland-Marshall College of Law and Georgetown University.

In her role with PlayhouseSquare, Ms. Gaul has managed financing for projects that have transformed the PlayhouseSquare district, including: ■ The renovation of the Allen, Hanna and 14th Street theaters.

■ Development of the partnership between PlayhouseSquare and the public broadcasting organization ideastream to fund the Idea Center. (This collaboration saved nearly $7 million in Idea Center construction costs to become the new home of ideastream and PlayhouseSquare’s arts education programs.)

■ The real estate expansion of PlayhouseSquare, including the acquisition of the Hanna and Bulkley buildings; construction of the $9 million PlayhouseSquare parking garage; and construction of the $27 million Wyndham Cleveland Hotel at PlayhouseSquare.

■ The interior transformation of the Middough Building for a collaboration of Cleveland State continued on NEXT PAGE ➤➤

Action Management Services Earning the trust of Northeast Ohio professionals for over 30 years.

Professional -- Honest To The Point • Executive Search • Professional Placement • Consulting

ACTION

Management Services 6055 Rockside Woods Blvd. Cleveland, OH 44131

216-642-8777 The A.M. McGregor Group • 14900 Private Drive • Cleveland, OH 44112 • mcgregoramasa.org

www.actionmgmt.com

TAKE ACTION TODAY!

20121015-NEWS--33-NAT-CCI-CL_--

10/11/2012

3:52 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

OCTOBER 15 - 21, 2012

PREVIOUS CFO OF THE YEAR HONOREES 2011 ■Mary Ann Freas, Southwest Community Health System ■Richard “Duke� Jankura, JumpStart Inc. ■Michael E. Mayher, Lakeland Community College ■Bill Chorba, NineSigma Inc. ■Cameron C. Rubino, OrthoHelix Surgical Designs Inc. ■Susan Suvak, Majestic Steel USA Inc. ■Robert Trabucco, Sterling Jewelers Inc. ■Vincent Petrella, Lincoln Electric Co.

University, Cleveland Play House and PlayhouseSquare Foundation.

The space is for the CSU arts and drama department, and CPH wardrobe and administrative offices. â– The reinvention of the vintage Hanna Annex building into residential housing for 103 units. The most recent real estate project in the PlayhouseSquare district, it already has a waiting list of 30 future occupants who anticipate a move-in date of spring 2013.

YANK HEISLER Yank Heisler is the retired chairman of KeyBank; retired CEO of McDonald Financial Group; and recently retired as the dean of the Kent State University College of Business Administration and Graduate School of Management.

Mr. Heisler, a Ravenna native, graduated cum laude with a bachelor’s degree in biochemistry from Harvard College and he earned his master’s degree in business administration from Kent State University.

Mr. Heisler went into banking with the former Goodyear Bank in Akron. His 37-year career in banking culminated as chairman of KeyBank. His second career at Kent State included serving as special adviser to president Lester Lefton, interim CFO for the university and three years as the dean of Kent State’s business school.

Mr. Heisler is a member of the board of directors for FirstEnergy Corp., Myers Industries and Third Federal Savings. He was chairman of Team NEO and was the 2012 honorary chairman for the Bridgestone Invitational at Firestone Country Club.

He serves as the chairman of University Hospitals’ advisory council for the Harrington Heart and Vascular Institute, the Robinson Memorial Hospital Foundation and recently served as a judge for Ernst & Young’s Entrepreneur of the Year program. He and his wife, Lynn, have four adult children.

VINCE PETRELLA Vince Petrella was elected CFO of The Lincoln Electric Co. in 2004.

He initially joined the company as manager of internal audit, becoming corporate controller in 1997 and being elected an officer in 2001.

Prior to joining Lincoln, Mr. Petrella worked for 13 years for PricewaterhouseCoopers LLP. A 1982 graduate of Baldwin-Wal-

â– Mark Clark, FirstEnergy Corp.

2010 ■Laurie Brlas, Cliffs Natural Resources Inc. ■Robert G. O’Brien, Forest City Enterprises Inc. ■Mark R. Widmar, GrafTech International Ltd. ■Gregory Robinson, Safeguard Properties LLC ■Andrew Tanner, The NRP Group ■Frank Mercuri, Vocon ■Michael A. Szubski, University

lace College, Mr. Petrella has been lauded for his work in financial reporting and compliance, as well as his creation of an investor relations program that has become more professional and proactive. He was one of the winners of last year’s CFO of the Year Awards. “Under Mr. Petrella’s management and direction, Lincoln has put in place a compelling strategy to maintain a strong balance sheet and performance,� his 2011 nomination said. “The company always emphasizes that it is investing its strong cash flow in profitable growth and global expansion and shows that the company is earning a solid return via its organic growth.�

In addition to his work in guiding the fiscal strategies of the company, Mr. Petrella also is known for acquiring and growing talent. He and his staff also have played a lead role in the company’s conversion to defined contribution retirement plans. “Feedback from institutional investors states that accessibility to senior management and credibility of the CFO are the top factors in a successful corporate investor relations program,� his 2011 nomination said. “Mr. Petrella’s record in this area is exemplary.�

THOMAS WALTERMIRE Thomas A. Waltermire joined Team NEO in March 2006 as its CEO, following a 31-year career with major Northeast Ohio corporations: BFGoodrich, The Geon Co. and PolyOne Corp.

He served as chairman and CEO of both Geon and PolyOne. Team NEO is the 18-county region’s private sector, economic development hub, with strong ties to the major metropolitan chambers of commerce and the key region-wide development organizations.

Mr. Waltermire grew up in the Akron area, and joined BFGoodrich in 1974 following degrees from Ohio State University and the Harvard Business School.

He held a range of financial, operating and general management positions, until becoming Geon’s CFO when it spun off from BFGoodrich in 1993. In 2000, as Geon CEO, he led the formation of the $3 billion PolyOne Corp. when Geon acquired Cleveland-based M.A. Hanna Corp.

Mr. Waltermire serves on the

Hospitals â– Craig Foltin, Cuyahoga Community College â– Brian S. Kenyon, The Rock and Roll Hall of Fame and Museum Inc.

2009

■Richard C. Ebner, Liberty Bank ■Rick Coan, Garick LLC ■Steven C. Glass, Cleveland Clinic ■John D. Grampa, Brush Engineered Materials Inc. ■Yvette M. Ittu, Greater Cleveland Partnership ■Fredric “Fritz� Kohmann, Shearer’s Foods Inc. ■Julie McGraw, National Interstate

board of directors of Westfield Bank, Flow Polymer, AlSher Titania and Collaborant Inc. He has served as chairman of NorTech and on the executive committees and boards of Cleveland Tomorrow, the Greater Cleveland Partnership, JumpStart Inc. and the Ohio Business Roundtable.

He is the founding chairman of the Ohio Polymer Strategy Council and has been appointed by two Ohio governors to Ohio’s Third Frontier Advisory Board.

He currently serves on the boards of the Cleveland Orchestra, ideastream and Baldwin Wallace University.

C-13

Corp. â– C. Michael Rutherford, Summa Health System â– John P. Sesek, Positive Education Program â– Stephen J. Smith, American Greetings Corp.

â– Frank Roddy, Swagelok Co. â– Kevin V. Roberts, University Hospitals Health System â– Carole Sanderson, Herschman Architects Inc. â– Thomas G. Smith, Forest City Enterprises Inc.

2008

2012 NOMINEES

â– Bonnie Barrett, Cleveland Foodbank â– Tom Browne, Bellefaire/Wingspan Care Group â– Jenniffer Deckard, Fairmount Minerals â– Mark Eisele, Applied Industrial Technologies â– John Flanagan, Howley Bread â– Patricia Gaul, PlayhouseSquare Foundation â– Ware H. Grove, CBiz Inc. â– Michael Headen, United Way of Greater Cleveland â– Karen D. Melton, Kaufman Container Co. â– Tim Pistell, Parker Hannifin Corp.

2007 â– David K. Creamer, Kent State University â– Glenn A. Eisenberg, The Timken Co. â– Richard H. Fearon, Eaton Corp. â– Richard L. Garcia, Wastequip Inc. â– Craig Kaiser, YMCA of Greater Cleveland â– J.T. Mullen, The Cleveland Foundation

â– Robert Baker, City of Shaker Heights â– Kathleen Bodnar, Staffing Solutions Enterprises â– Tim Bowman, Emergency Medicine Physicians â– Dale Cable, United Church Insurance Board â– Lisa Colling, Laketran â– Gregg Floyd, Kent State University â– Kevin Herendeen, Fathom â– John Huff, Ganeden Biotech â– Thomas McGinty, PK Management LLC â– Scott Morgan, Cuyahoga County Public Library â– Eugene Novak, Dwellworks LLC â– David Shultz, Bellwether Enterprise Real Estate Capital LLC â– James Sprague, Walthall, Drake & Wallace LLP â– Steve Strnisha, Cleveland International Fund â– Don Weidig, Area Wide Protective â– Anne Yankow, International Transport Services â– Almut Zvosec, Cleveland Institute of Art

/QUV JCTF YQTM CPF UWEEGUU TGEGKXGU CRRNCWUG DWV UQOG FGUGTXG C UVCPFKPI QXCVKQP *QYCTF 9GTUJDCNG %Q YQWNF NKMG VQ EQPITCVWNCVG QWT ENKGPVU CPF HTKGPFU QP VJGKT PQOKPCVKQP HQT VJG %(1 QH VJG ;GCT #YCTF

r *KNCT[ $GCVTG\ 6JG %NGXGNCPF *GCTKPI 5RGGEJ %GPVGT r #PP %QPP 6JG # / /E)TGIQT )TQWR r *CTT[ $ %QQN 8QNWPVGGTU QH #OGTKEC QH )TGCVGT 1JKQ r 'NK\CDGVJ &QPCNFUQP &G 0QTC 6GEJ +PE r ,QJP *CTXCP *QURKEG QH VJG 9GUVGTP 4GUGTXG

JYEQ EQO ^

20121015-NEWS--34-NAT-CCI-CL_--

C-14

10/12/2012

CRAIN’S CLEVELAND BUSINESS

1:50 PM

Page 1

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

THE 2011 CFO OF THE YEAR AWARDS RECEPTION

ABOVE: A group of honorees gather on stage after being recognized at the reception.

LEFT: John MacIntosh, the managing partner in event sponsor KPMG’s Cleveland office, addresses the crowd.

BELOW: Lisa Oliver, the president of event sponsor KeyBank’s Greater Cleveland District, makes some remarks.

JASON MILLER PHOTOS

Garrett Hudson (from left), Maria Castellano, Samantha Janosko and Shirley Cline from Ohio Technical College enjoy a pre-reception networking hour.

Pioneering the next generation of patient-centered innovation and commercialization

Congratulations Joseph M. Randazzo Patriotic & Proud We are honored to recognize the region’s financial leaders and unsung heroes who ensure our organizations are viably operating. ABIA is proud to have one such dedicated individual on our team as we work to transform Akron into a model for biomedical discovery and enterprise.

Saluting Our

Russ Schabel 2012 Crain’s CFO of the Year Nominee 1010 Industrial Pkwy N Brunswick, OH 44212 (330) 225-3344 www.philpottrubber.com

20121015-NEWS--35-NAT-CCI-CL_--

10/12/2012

2:14 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

35

Story: Hospital studies response to Summa’s minority stake sale continued from PAGE 1

added Dr. Stover, who served as president of the system’s outpatient operations prior to taking on the CEO role. “We’re supposed to invest it.”

Since 2006, that’s just what Akron General’s done, having quietly added more than 120 physicians to its ranks, pumped millions of dollars into a growing neurology service line and commercialized its wellness center concept with the help of Signet Enterprises, a wellknown Akron developer.

While the system in recent years hasn’t invested heavily in bricks and mortar like its competitors, Dr. Stover said the investments — all of which he shepherded prior to taking the CEO role — should reap dividends for the health system in the coming years.

“It’s a real challenge when you’re spending money and investing to also turn a positive operating margin,” Dr. Stover said. “We’ve been burning cash. There’s no question about that … but over 2012, 2013 and 2014 we should start reaping the benefits of these investments.”

Summa Health System — Akron General’s nearby and much larger competitor — has paused its expansion efforts, and this summer announced it would explore the sale

of a minority stake in itself to another nonprofit health care organization in order to shave some costs it acquired amid its growth. Area health care observers note that Summa’s announcement opens a window for Akron General to make a splash, or at least a little noise, in the region’s bustling health care market.

“That gives Akron General an opportunity to think a little more broadly than they have in the past because they don’t have Summa out there bidding up the price of everything they’d be interested in, like a physician practice or anything else,” said Bill Ryan, president of the Center for Health Affairs, an advocacy group representing local hospitals.

An eye on Summa The sheer size of Summa, which boasts about $1.6 billion in annual operating revenue, has allowed the health system to make more noise in the Akron market than Akron General, a roughly $500 million operation, would prefer. Summa, for one, has aggressively acquired physicians and several properties over the last decade and benefited from the media splashes that went along with such moves.

“Not to be insulting to General, (but) it just seems like Summa has

STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION 1. Publication title: Crain’s Cleveland Business 2. Publication No.: 532-210 3. Filing Date: 9/28/12 4. Issue Frequency: Weekly, except combined issues on fourth & fifth week of May, fourth week of June and first week of July and third and fourth week of December.

5. No. of Issues Published Annually: 50 6. Annual Subscription Price: $64.00 7. Complete Mailing Address of Known Office of Publication: Crain Communications Inc., 700 W. St. Clair, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. Contact Person: Lynn Schwab (313) 446-0311 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: Crain Communications, Inc., 700 W. St. Clair, Suite 310, Cleveland, OH 44113-1230.

9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: publisher: Brian Tucker, Crain Communications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230; editor: Mark Dodosh, Crain Communications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230; managing editor: Scott Suttell, Crain Communications Inc., 700 W. St. Clair, Suite 310, Cleveland OH 44113-1230 10. Owner (If the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of total amount of stock. If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership or other unincorporated firm, give its name and address, as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address.)

Crain Communications Inc., 1155 Gratiot Avenue, Detroit, MI 48207-2997; K.E. Crain, 1155 Gratiot Avenue, Detroit, MI 48207-2997; R.E. Crain, 711 Third Avenue, New York, NY 10017-4036.

11. Known Bondholders, Mortgagees and other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None.

12. Tax Status: (For completion by nonprofit organizations authorized to mail at nonprofit rates.) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: (Check One) ❑ Has Not Changed During Preceding 12 Months ❑ Has changed During Preceding 12 Months (Publisher must submit explanation of change with this statement) 13. Publication Title: Crain’s Cleveland Business 14. Issue Date for Circulation Data Below: September 24, 2012 15. Extent and Nature of Circulation No. Copies Average no. of copies of single issue each issue during published nearest preceding 12 months to filing date A. Total No. Copies (Net Press Run) 20,446 19,763 B. Paid Circulation (by mail and outside the mail) (1) Mailed Outside-County Mail Subscriptions Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies and exchange copies) 6,430 6,332 (2) Mailed In-County Paid Subscriptions stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies and exchange copies) 12,468 11,892 (3) Paid distribution Outside the Mails including Sales through dealers and carriers, street vendors, counter sales, and other paid distribution outside USPS 109 92 (4) Paid distribution by other classes of mail through the USPS 0 0 C. Total Paid and/or Requested Circulation (Sum of 15B(1), (2), (3) and (4)) 19,007 18,316 D. Free or Nominal Rate Distribution (by mail and outside the mail) (1) Free or Nominal Rate Outside-County Copies included on PS form 3541 48 49 (2) Free or Nominal Rate In-County Copies included on PS form 3541 98 106 (3) Free or Nominal Rate Copies mailed at other classes through the USPS 0 0 (4) Free or Nominal Rate Distribution outside the mail (Carriers or other means) 230 308 E. Total Free or Nominal Rate Distribution (Sun of 15D (1), (2), (3) and (4)) 376 463 F. Total Distribution (Sum of 15C and 15E) 19,383 18,779 G. Copies not distributed 1,063 984 H. Total (Sum of 15F and G) 20,446 19,763 I.Percent Paid and/or Requested Circulation (15C/15F x 100) 98.06% 97.53% 16. Publication of Statement of Ownership printed in the 10/15/12 issue of this publication.

17. I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

Brian Tucker, Publisher 9-27-12

outhustled them a little bit in terms of setting itself up as a regional player while General has stayed the course as a substantial single-market hospital,” Mr. Ryan said.

Dr. Stover, however, is much more willing than Akron General’s previous leaders to get out in the community to share the health system’s story and to pump more funding into its marketing and advertising efforts. At one point, the system’s top brass questioned whether Akron General should have a marketing department at all.

“Everybody has competition, and you’ve got to get your story out,” said Akron General board chairman Mark Lerner, also the president and chief operating officer of GoJo Industries Inc. in Akron. “There’s more choice today. There are lots of alternatives and lots of different audiences that we need to be speaking to.”

Strategically speaking, Dr. Stover said Akron General is plotting how to respond, if at all, to Summa’s announcement it may sell a minority stake of its enterprise to another organization. While he didn’t share specifics about what the system might do, he said system officials plan to meet this week to determine

whether Akron General should tweak its strategy.

Dr. Stover, however, left open the possibility of Akron General becoming an arm of a larger health system. About five years ago, Akron General had been in talks with the Cleveland Clinic about some sort of affiliation or merger but the deal ultimately fell through.

“Whether we become an arm of somebody else or whether we become part of a larger system, I’m not going to sit here and tell you that will never happen because inevitably it probably will,” Dr. Stover said. “I don’t know when, but I know we have to be prepared for it and we are preparing for it.”

Investments paying off?

Dr. Stover said the health system’s investments that dinged the system’s bottom lines are on the verge of paying off.

For one, Integrated Wellness Partners, the joint venture between Signet and Akron General launched last year, is expected to announce its first deal in the coming weeks — something Dr. Stover is eager to do because “frankly, we need the revenue” — with others in the pipeline.

The venture seeks to cash in on Akron General’s expertise in the wellness arena by offering its services to other health systems, universities and municipalities across the country that want to develop their own wellness enterprises.

Also, the system’s neuroscience institute, a $30 million investment launched last year, is starting to gain some traction. The neurology service line is expected to be a lucrative offering over the next five to 10 years as baby boomers age.

Earlier this year, Akron General opened its neurointensive care unit, the first in Summit County.

Last month, it opened its gamma knife center, which boasts a $5 million machine that uses radiation instead of a knife to target brain tumors.

Dr. Stover said the neuroscience institute is a major investment — the price tag of which is comparable to one of its wellness centers — that he expects in time will rival the expertise offered by the health care juggernauts anchored in Cuyahoga County.

“The doc part of me said we have to do this,” Dr. Stover said. “There is no question this is the right thing to do.”

■

20121015-NEWS--36-NAT-CCI-CL_--

36

10/11/2012

11:31 AM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

LARGEST COLLEGES AND UNIVERSITIES RANKED BY FALL 2012 FULL-TIME EQUIVALENT ENROLLMENT Name of college or university Address Rank Phone/Website

Full-time equivalent enrollment Fall 2012

Fall 2011

% change

Student/ faculty ratio

Annual tuition Room & board

% of enrollment undergraduate graduate

Type of Operating budget institution (millions) Affiliation Year founded

Endowment ($ millions)

President

1

Kent State University P.O. Box 5190, Kent 44242 (330) 672-3000/www.kent.edu

31,073

30,520

1.8%

21:1

$9,672.0 $9,178.0

84.0% 16.0%

4 year public

$616.5 1910

114.5

Lester A. Lefton

2

University of Akron 302 Buchtel Common, Akron 44325 (330) 972-7111/www.uakron.edu

22,430

23,219

-3.4%

21:1

$9,863.0 $9,878.0

84.0% 16.0%

4 year public

$402.3 1870

182.7

Luis M. Proenza

3

Cuyahoga Community College 700 Carnegie Ave., Cleveland 44115 (800) 954-8742/www.tri-c.edu

17,687

18,387

-3.8%

19:1

$2,936.0 NA

100.0% 0.0%

2 year public

$300.0 1963

27.7

Jerry Sue Thornton

4

Cleveland State University 2121 Euclid Ave., Cleveland 44115 (216) 687-2000/www.csuohio.edu

17,563

17,300

1.5%

17:1

$9,264.0 $11,848.0

69.0% 31.0%

4 year public

NA 1964

NA

Ronald M. Berkman

5

Youngstown State University One University Plaza, Youngstown 44555 (330) 941-3000/www.ysu.edu

11,171

11,677

-4.3%

19:1

$7,712.0 $8,150.0

91.0% 9.0%

4 year public

$180.0 1908

200.3

Cynthia E. Anderson

6

Case Western Reserve University 10900 Euclid Ave., Cleveland 44106 (216) 368-2000/www.case.edu

9,259

8,815

5.0%

10:1

$40,120.0 $12,436.0

44.0% 56.0%

4 year private

$987.8 1826

1,613.5

7

Lorain County Community College 1005 N. Abbe Road, Elyria 44035 (800) 995-5222/www.lorainccc.edu

7,551

7,888

-4.3%

20:1

$2,876.9 NA

100.0% 0.0%

2 year public

$66.2 1963

21.7

8

Lakeland Community College 7700 Clocktower Drive, Kirtland 44094 (440) 525-7000/www.lakelandcc.edu

5,582

5,828

-4.2%

20:1

$3,087.0 $0.0

100.0% 0.0%

2 year public

$58.7 1967

NA

Morris W. Beverage

9

Stark State College 6200 Frank Ave. NW, Canton 44720 (330) 494-6170/www.starkstate.edu

4,447

4,304

3.3%

20:1

$4,410.0 NA

100.0% 0.0%

2 year public

NA 1960

NA

Para M. Jones

10

Ashland University 401 College Ave., Ashland 44805 (419) 289-4142/www.ashland.edu

4,381

4,429

-1.1%

12:1

$28,858.0 $9,502.0

54.0% 46.0%

4 year private

$128.0 1878

42.5

Frederick Finks

11

Baldwin Wallace University 275 Eastland Road, Berea 44017 (440) 826-2900/www.bw.edu

3,719

3,700

0.5%

15:1

$27,060.0 $7,520.0

84.0% 16.0%

4 year private

$111.7 1845

113.9

Robert C. Helmer

12

John Carroll University 1 John Carroll Boulevard, University Heights 44118 (216) 397-1886/www.jcu.edu

3,265

3,624

-9.9%

13:1

$32,130.0 $9,610.0

81.0% 19.0%

4 year private

$81.0 1886

102.4

Rev. Robert L. Niehoff, S.J.

13

Oberlin College 101 N. Professor St., Oberlin 44074 (440) 775-8400/www.oberlin.edu

2,915

2,944

-1.0%

9:1

$44,512.0 $12,120.0

99.5% 0.5%

4 year private

NA 1833

666.2

Marvin Krislov

14

Walsh University 2020 E. Maple St. NW, North Canton 44720 (330) 490-7090/www.walsh.edu

2,607

2,883

-9.6%

15:1

$23,550.0 $10,080.0

NA NA

4 year private

$67.7 1960

12.2

Richard Jusseaume

Barbara R. Snyder

Roy A. Church

SOUND SOLUTIONS FOR HIGHER EDUCATION Contact Chris Anderson + canderson@maloneynovotny.com + 216.363.0100

15

University of Mount Union 1972 Clark Ave., Alliance 44601 (800) 992-6682/www.mountunion.edu

2,235

2,202

1.5%

13:1

$26,650.0 $8,480.0

98.0% 2.0%

4 year private

$50.5 1846

NA

Richard Giese

16

Malone University 2600 Cleveland Ave. NW, Canton 44709-3897 (330) 471-8100/www.malone.edu

2,143

2,201

-2.6%

13:1

$23,860.0 $8,454.0

80.0% 20.0%

4 year private

$41.6 1892

14.3

David A. King

17

The College of Wooster 1189 Beall Ave., Wooster 44691 (330) 263-2000/www.wooster.edu

2,051

1,970

4.1%

11:1

$39,500.0 $9,590.0

100.0% 0.0%

4 year private

$77.0 1866

236.0

Grant H. Cornwell

18

Notre Dame College 4545 College Road, South Euclid 44121 (216) 381-1680/http://notredamecollege.edu

1,807

1,807

0.0%

14:1

$25,514.0 $8,296.0

84.0% 16.0%

4 year private

$44.0 1922

6.4

Andrew P. Roth

19

Ohio Technical College 1324 E. 51st St., Cleveland 44103 (216) 881-1700/www.ohiotech.edu

1,478

1,511

-2.2%

13:1

$13,900.0 NA

100.0% 0.0%

2 year private

NA 1969

NA

Marc Brenner

20

Hiram College P.O. Box 67, Hiram 44234 (330) 569-3211/www.hiram.edu

1,295

1,334

-2.9%

12:1

$29,065.0 $9,560.0

97.7% 2.3%

4 year private

$33.4 1850

NA

Thomas V. Chema

21

Lake Erie College 391 W. Washington St., Painesville 44077 (440) 296-1856/www.lec.edu

1,202

1,165

3.2%

14:1

$25,976.0 $8,336.0

86.0% 14.0%

4 year private

$20.3 1856

6.3

Michael T. Victor

22

Ursuline College 2550 Lander Road, Pepper Pike 44124 (440) 449-4200/www.ursuline.edu

976

903

8.1%

9:1

$25,530.0 $8,578.0

59.0% 41.0%

4 year private

$30.5 1871

33.0

Diana Stano, O.S.U.

23

Remington College-Cleveland Campus 26350 Brookpark Road, North Olmsted 44070 (440) 777-2560/www.remingtoncollege.edu

794

986

-19.5%

15:1

$19,600.0 NA

100.0% 0.0%

2 year private

NA 1986

NA

Gary A. Azotea Patrick Resetar

24

Northeast Ohio Medical University(1) 4209 state Route 44, Rootstown 44272 (330) 325-2511/www.neomed.edu

791

778

1.7%

NA

NA $10,500.0

0.0% 100.0%

4 year public

$42.5 1973

6.9

Jay Alan Gershen

25

The Ohio State University Agricultural Technical Institute 1328 Dover Road, Wooster 44691 (330) 287-1331/www.ati.osu.edu

611

644

-5.1%

16:1

$7,104.0 $6,408.0

100.0% 0.0%

2 year public

$8.0 1969

NA

James E. Kinder

26

The Cleveland Institute of Art 11141 East Blvd., Cleveland 44106 (216) 421-7000/www.cia.edu

546

530

3.0%

8:1

$32,960.0 $11,768.0

100.0% 0.0%

4 year private

NA 1882

NA

Grafton J. Nunes

27

Cleveland Campuses of Indiana Wesleyan University 4100 Rockside Road, Independence 44131 (216) 525-6160/http://cleveland.indwes.edu

400

450

-11.1%

12:1

NA NA

NA NA

4 year private

NA 2002

NA

Henry Smith

28

DeVry University(2) 4141 Rockside Road, Suite 110, Seven Hills 44131-2537 (216) 328-8754/www.devry.edu

336

394

-14.7%

NA

$16,076.0 $6,434.0

68.0% 32.0%

4 year private

NA 1931

NA

Joe Onorio

29

Virginia Marti College 11724 Detroit Ave., Lakewood 44107 (216) 221-8584/www.vmcad.edu

212

226

-6.2%

12:1

$15,600.0 NA

100.0% 0.0%

2 year private

NA 1966

NA

Virginia Marti Veith

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. (1) M.D. tuition is $30,875. PharmD tuition is $17,700. (2) Enrollment numbers are for 2011 and 2010. DeVry's fall semester starts in late October.

20121015-NEWS--37-NAT-CCI-CL_--

10/12/2012

1:55 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

37

R&D: Magnet helping smaller outfits invest continued from PAGE 1

Thogus to take advantage of the R&D trend: Rapid Prototype and Manufacturing LLC, a product development company; and Jalex Medical, a biomedical consulting firm.

Mr. Hlavin said as the market improves, companies are releasing more money for R&D. And he doesn’t expect to see that stop anytime soon.

He expects that Rapid Prototype and Manufacturing one day will have more additive manufacturing machines than Thogus has injection molding machines as more companies turn to 3-D printing for tools and parts.

Meanwhile, Thogus also continues to invest internally. The company spends $2 million to $3 million per year on capital equipment, and R&D spending represents one-third of that budget, Mr. Hlavin said.

Spending sprees Industrial companies across the board are spending on average 8.5% more in 2012 on R&D than the previous year, according to a June 2012 study by Schonfeld & Associates Inc., an Illinois-based market research firm.

Lincoln Electric will spend about $80,000 per trainee during its six- to 12month training course, Mr. Stropki said. However, the company was able to afford the expense because it has seen continued growth.

Lincoln Electric, which since July 2011 has acquired Stropki four businesses, reported net income of $66.3 million in the second quarter — a 16% increase from the previous year.

Tony Oliverio, president of EQS Systems LLC in Chesterland, an engineering sales and technical representative, said R&D spending started picking up about two months ago.

He has seen a particularly strong interest in spending on lighting technology.

Eye Lighting International in Mentor, a provider of commercial lamps and lighting products, in July opened a new 2,000-square-foot luminaire design and assembly center within its Mentor building.

The new lab allows the company to further develop its LED and HID (high intensity discharge) energy efficient technologies, which are in high demand, said Tom Salpietra, president and chief operating officer of Eye Lighting.

The 135-person company this year has hired three new engineers and plans by early 2013 to hire two or three more. “We’re really bolstering the R&D side,� Mr. Salpietra said. “We have a very aggressive plan.�

Eye Lighting’s R&D investment is up from 2011 and Mr. Salpietra plans to continue to increase that dollar figure in order to keep the company on the cusp on new technology,

Lumitex Inc., a Strongsville-based lighting technology firm, started increasing its investments in R&D after the recession. The company was looking for new services it could offer and markets it could tackle, according to Peter Broer, president and CEO of Lumitex. “When you’re in that hole, you think about how to survive and how to grow in the future,� Mr. Broer said.

Now, 15% of the 190-person company’s top line goes back into technology, both to increase the engineering staff and purchase new capital equipment. “Your investment is always slightly ahead of your profit,� Mr. Broer said. “We’ve grown because we’ve proven new technology.�

+ have come together to create a game-changing platform in commercial real estate – Newmark Grubb Knight Frank. :LWK RÄ FHV WKURXJKRXW 1RUWK $PHULFD D VKDUHG HQWUHSUHQHXULDO VSLULW DQG D FRPPLWPHQW WR VXSHULRU FOLHQW VHUYLFH 1HZPDUN *UXEE .QLJKW )UDQN LV WKH LQGXVWU\Ă&#x;V QHZHVW IXOO VHUYLFH SRZHUKRXVH $V SDUW RI %*& 3DUWQHUV D OHDGHU LQ JOREDO FDSLWDO PDUNHWV ZH DUH GUDPDWLFDOO\ LQFUHDVLQJ RXU IRRWSULQW H[SDQGLQJ RXU EXVLQHVV OLQHV DQG FDSLWDOL]LQJ RQ WHFKQRORJ\ Ăœ HVWDEOLVKLQJ D SUHPLHU SRVLWLRQ LQ FRPPHUFLDO UHDO HVWDWH

Outsourcing R&D While many larger companies have the means to increase R&D spending, small and midsized manufacturers often have a harder time making the numbers work, according to Dan Berry, president and CEO of Magnet, a regional economic development organization.

For that reason, Magnet in 2011 launched its PRISM (Partnership for Regional Innovation Services to Manufacturers) initiative.

Through PRISM, Magnet pairs manufacturers with local colleges and universities, which use faculty, students, facilities and equipment to help companies develop new products and technologies to grow their businesses. “Ultimately, we believe the success of PRISM will lay the groundwork for advancing a big vision, one where Northeast Ohio is internationally recognized as a center of manufacturing innovation,� Mr. Berry said during a recent news conference about PRISM. George Haritos, dean of the College of Engineering at the University of Akron, one of the university partners of PRISM, said the demand from manufacturers for help with R&D is spurring programs like PRISM. “A lot of companies are getting out of in-house R&D,� Dr. Haritos said. “It costs a lot to maintain labs and scientists.�

Rather than hiring an engineer who could be paid $100,000, companies instead are investing those salaries into research, said Luis Proenza, president of the University of Akron.

Even though large manufacturers like Lincoln Electric keep most of their R&D efforts in house, Mr. Stropki, who is a proponent of PRISM, said it helps his company when smaller local manufacturers are growing. “We want to keep a large manufacturing base in Cleveland,� Mr. Stropki said.

That gives the company a larger and stronger network of suppliers and a greater pool of talent from which to draw, he said. â–

Volume 33, Number 40 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the third week of May and fourth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Š 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877824-9373.

REPRINT INFORMATION: 800-290-5460 Ext. 136

TWO GREAT BRANDS. ONE REAL ESTATE POWERHOUSE.

(XFOLG $YHQXH 6XLWH &OHYHODQG 2KLR Newmark Grubb Knight Frank Tenant & Landlord Representation Š Global Corporate Services Š Investment Sales & Capital Markets Š Property Management Š Facilities Management Š Appraisal Š Project Management Š 2Ä FH Š Industrial Š Retail Š Multi-family Š Hospitality

Sponsored by

Safeguarding Your Company’s Most Valuable Assets

7EDNESDAY /CTOBER s A M 4HE 2ITZ #ARLTON #LEVELAND 052#(!3% 4)#+%43 (%2%

www.CrainsCleveland.com/BREAKFAST

Beautiful, Durable Low Maintenance Flooring!

Š Š Š Š

'#76; ˜ 7#.+6; ˜ 74#$+.+6; ˜ #5' 1( %#4' 0%4'&+$.' \ [ 8#.7' ˜ 1/(146#$.' 61 56#0& #0& 9#.- 10 #0; %1.145 61 %*115' (41/

4XHVWLRQV" &DOO RU YLVLW 1DWXUH6WRQH FRP

20121015-NEWS--38-NAT-CCI-CL_--

38

10/11/2012

1:04 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

Contact: Phone: Fax: E-mail:

WWW.CRAINSCLEVELAND.COM

OCTOBER 15 - 21, 2012

REAL ESTATE

Toni Coleman (216) 522-1383 (216) 694-4264 tcoleman@crain.com

AUCTION

LAND

INDUSTRIAL PROPOSAL

124 acres and house at 17576 Philips Road Thompson Township, Geauga County, 1/2 tillable, 1/2 wooded, Parcel No. 30-054500, by Trustee, with or without mineral rights, or mineral rights only.

Invitation for offers deadline 11/07/12. For information call 440 285 2247 or email wchofstetter@windstream.net.

City of Lorain, OH will have a Request for Proposals (RFP) available for industrial/commercial real estate brokerage services for a city-owned commercial/industrial park, which is shovel ready with fully developed infrastructure. The complete RFP package will be available at http://www.cityoflorain.org/openbids/ The deadline for responses is 12 Noon on Wednesday November 14, 2012. Questions may be directed to Dave Gulden or Howard Goldberg at 440-204-2020

ABSOLUTE AUCTION TRI-LEVEL LUXURY LIVING IN BRATENHAL 10510 Lakeshore Blvd. Unit 2

FOR SALE PORTFOLIO SALE - BANKRUPTCY MANSFIELD AREA

OCTOBER 21ST • 1 PM

Copy Deadline: Wednesdays @ 2:00 p.m.

All Ads Pre-Paid: Check or Credit Card

3824 SF. of metropolitan living conveniently located minutes from downtown and a short walk to Lake Erie.

Private entries, walls of windows and patios graced by mature trees and lush landscaping.

All floors accessible by stairs or in-suite elevator.

1 & 2-Family Homes Multifamily and Retail Buy all or part

Ag Real Estate Group, Inc.,

List your Industrial, commercial or Retail Space Here!

Crain’s Cleveland Business’ classifieds will help you fill that space.

216-504-5000 www.agrealestategroup.com

Contact Toni Coleman at 216.522-1383

Stanley H. Rosen, Broker, Buddy Barton, Auctioneer, Agent

REALTORS: 877-BID-ROSEN • (877) 243-7673 OR (216) 990-1831 www.bidrosen.com • www.buddyBartonauctions.com

Now is a great time to promote your Luxury Properties to high-end prospects Call 216.522.1383 for more details.

CLASSIFIED BUSINESS OPPORTUNITY

Grow Your Business by Protecting Theirs

Selling ERIE commercial insurance will help

you grow your agency

while providing superior protection to your business clients.

Check us out. We’re seeking sales-driven, independent agents in

Northeast Ohio.

Both you and your clients will benefit from ERIE’s small business expertise.

Crain’s Executive Recruiter Director, Center for Innovation & Growth Baldwin Wallace University

EMPLOYERS:

The mission of the Center for Innovation & Growth is to infuse entrepreneurship campus-wide, while contributing to regional development. In 2007, CIG was launched with a grant from the Ewing Marion Kauffman Foundation and The Burton D. Morgan Foundation in collaboration with CIG’s corporate partners. In 2012, CIG is past the start-up and sustainability phases and now needs a leader to manage a controlled growth stage, as well as integrate CIG more fully into the University community. Learn more about this unique position, qualifications and application process at http://www.bw.edu/resources/hr/jobs

Reach the most

Baldwin Wallace is an EEO/AA employer and educator.

qualified workforce.

Advertise your open positions here.

Call Toni Coleman at 216-522-1383

ERIE will help grow your commercial book profitably with: t Tailored coverages and bundling that can save your clients money.

JOB SEEKERS:

t Dedicated underwriters who get to know you and your clients.

We now post POSITIONS WANTED in the Classified section of CrainsCleveland.com at

t Experienced risk control consultants in the field to help lower claims costs. t Specialized programs focused on workers’ compensation.

NO CHARGE (Up to 150 words)

t Local claims service—when and where your customers need it most.

E-Mail info to cmackey@crain.com

Your clients will have services they won’t find with just any commercial carrier. And you’ll have the support of a company dedicated to the independent agency system.

If you know small business like we do, then we should be in business together. A limited number of appointments are available, so call or visit our site today:

BUSINESS SERVICES Haul-My-Mess.com

Call: 1-800-362-6541 Visit: BecomeAnERIEAgent.com Auto t Home t Business t Life

S1462C 8/11

ATTENTION BUSINESS SERVICE OWNERS!

Commercial Clean-Out and Junk Removal Services.

Submit your business card to promote your service and receive a SUBSTANTIAL DISCOUNT off your ad price.

216-799-9911

To find out more, contact Toni Coleman at 216.522.1383

WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.”

20121015-NEWS--39-NAT-CCI-CL_--

10/12/2012

2:45 PM

Page 1

OCTOBER 15 - 21, 2012

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

39

THEINSIDER

THEWEEK OCTOBER 8 - 14 The big story: The developer of the Nashville Medical Trade Center, a potential competitor to Cleveland’s medical mart, said it is stopping its effort to sign leases with tenants. That effectively ends the plan by Market Center Management Co. of Dallas for a 1-million-square-foot competitor to Cleveland’s trade mart. Construction on the Cleveland mart is well under way; a July 2013 completion date has been set, and conventions and medical meetings are being booked.

That made it hard for a project still on the drawing board to gain traction.

Aloft soon to rise: Construction of a 135-room Aloft hotel at Chagrin Highlands corporate center in Beachwood is about to begin. BGL Real Estate Advisors, a subsidiary of Brown Gibbons Lang & Co., and Beachwood hotel developer Scott Berkowitz said they will break ground for the hotel — the symbolic start of construction — today, Oct. 15. The developers said the hotel should open next fall.

A space filler:

The vacant Borders Books space at the Promenade in Crocker Park is getting a new tenant next year. Seattle-based Nordstrom Inc. plans to open a Nordstrom Rack store in the former Borders space in Westlake.

The 34,000-square-foot store is scheduled to open in fall 2013. Nordstrom Rack is the off-price retail division of Nordstrom. This will be the first Nordstrom store in the western suburbs of Cleveland. Nordstrom currently has a full-line store at Beachwood Place and a Nordstrom Rack at Legacy Village in Lyndhurst.

More than a startup: One year after its launch, Magnet’s PRISM (Partnership for Regional Innovation Services to Manufacturers) initiative has legs. Magnet is partnering with four area higher education institutions — Cleveland State University, Case Western Reserve University, Lorain County Community College and the University of Akron — on the initiative. The colleges will work with Magnet to provide small to midsize manufacturers in Northeast Ohio with resources, such as faculty, students, facilities and equipment, to help them develop new products and technologies to grow their businesses.

Market forces: The Cleveland Clinic inked a deal with Walmart that will give employees of the retail giant access to the health system’s lauded cardiac surgery program at no out-ofpocket cost. The arrangement is part of the Clinic’s larger effort in recent years to work with selfinsured companies to provide access to health care while keeping costs low. The arrangement with Walmart is similar to the one the health system pioneered with home improvement retailer Lowe’s in 2010.

Mine your own business: Mining company Cliffs Natural Resources Inc. of Cleveland reached a tentative agreement with the United Steelworkers on a three-year labor contract offer for its Michigan and Minnesota mining operations. The contract would cover about 2,400 USW-represented workers at Cliffs’ Empire and Tilden mines in Michigan, and its United Taconite and Hibbing Taconite mines in Minnesota. Cliffs did not disclose details of the agreement, which awaits ratification by USW local union members.

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

If politics is your idea of a good time …

■ Cleveland isn’t yet a major stop on the international bus tourism circuit — as places like Las Vegas, Orlando and the Gettysburg battlefield are —but there is a group coming to see our slice of the election front line.

Political Tours Ltd., a specialized United Kingdom travel company, is bringing a group through town Nov. 2 as part of its “U.S. Elections 2012” tour.

For $5,150, the group will be flown into Columbus on Oct. 31. Visitors will wind their way north through rural Republican Ohio to Cleveland, visiting farmers, labor leaders and black ministers along the way. The tour turns around and heads to Dayton before jetting to Washington, D.C., on Sunday, Nov. 4. They will stay there until Wednesday, Nov. 7, to see up close how the presidential election sorts out.

Organizers picked Ohio because of its pivotal role in the election, and Cleveland because of the city’s blue collar and ethnic electorate.

They also will examine the burst of development downtown and along Euclid Avenue.

“The afternoon in Cleveland is spent looking at the city’s revival — a challenge many former industrial cities in America have faced as Asia booms,” the online tour brochure says. “We get local Democratic perspectives on the state’s vote.” — Jay Miller

For now, at least, wellness will wait

build a $30 million, 115,000-square-foot health center in Broadview Heights, which would be the system’s first foray into Cuyahoga County, is on hold.

“We can’t afford the clinical services. We just can’t afford to do it right now,” Akron General CEO Dr. Thomas “Tim” Stover said in a recent interview. “Our debt structure won’t let us do it, but I know there’s revenue there.”

However, Dr. Stover, the system’s CEO and the architect of the system’s wellness centers, said there’s a way to restructure the deal that will put the delayed project into motion in the first quarter of next year.

Dr. Stover said he plans to meet with Broadview Heights Mayor Sam Alai this week to discuss the project but wouldn’t share the details of his proposal until he met with the mayor and his staff.

“There’s a different way to think about this,” Dr. Stover said. “I want to get this started.”

Original plans for the facility called for a 24/7 emergency department, three pools, three gymnasiums, fitness equipment and space for physical therapy. It would be built on the Broadview Heights city campus and physically connected to the city building.

Akron General runs health and wellness centers in Montrose, Stow and Green. — Timothy Magaw

Charter’s not the only thing that’s new at North Coast

■ Akron General Health System’s quest to

■ It makes sense that a credit union would want a more visible location when it has changed its charter and now can pull new members from all of Cuyahoga County, not

MILESTONE

BEST OF THE BLOGS

THE COMPANY: Dix and Eaton, Cleveland THE OCCASION: Its 60th anniversary

Excerpts from recent blog entries on CrainsCleveland.com.

The corporate communications firm was established in 1952 when John Dix and Henry Eaton — co-workers at Industrial Publishing Company — invested $1,500 each to form their own industrial advertising agency.

It gained its first two public-company clients — White Consolidated Industries and Van Dorn — in the late 1950s, and with the addition of Scott & Fetzer in 1970, “reached a critical mass of public-company clients to build upon,” according to the firm.

Current Dix & As the firm’s business Eaton CEO Scott emphasis shifted to cor- Chaikin porate communications, “its creative origins as an ad agency made annual reports a natural fit, a strength that remains today,” Dix and Eaton said.

Mr. Dix retired in 1982, and Mr. Eaton was the sole owner by 1987. Expansion of ownership began in the mid-1990s, and by the end of the decade, employees owned a combined total of 83% of the firm, with the four Eaton children retaining the remainder. Today, their holdings are about 12%.

Scott Chaikin was named CEO in 1998 and, following Mr. Eaton’s retirement at the end of 1999, became chairman and CEO. Mr. Eaton died in 2003 at age 77. Mr. Dix died in 2006 at age 89.

In celebration of its 60th anniversary, the firm is launching “60 for 60,” a pro bono program through which it will contribute 60 hours of professional services to a single nonprofit organization, small business or startup.

For information, visit www.Dix-Eaton.com.

CWRU, Ohio State are class acts by these standards ■ Case Western Reserve University and Ohio State University both landed on a list of the world’s 100 best universities compiled by The Times of London and Thomson Reuters.

The news organizations set out to “judge world class universities across all of their core missions — teaching, research, knowledge transfer and international outlook.”

The methodology broke down this way: teaching (worth 30% of the overall ranking score); research (worth 30%); citations/ research influence (worth 30%); innovation (worth 2.5%); and international outlook (worth 7.5%).

Ohio State was the top-ranked school in Ohio, at No. 57 globally. Case Western Reserve was ranked as the world’s 93rd-best school.

Topping the list was an elite, but unlikely, choice: the California Institute of Technology.

Cleveland’s on the road to something good ■ The fancy new MOCA Cleveland building that opened last week “may make the loudest design statement, but it’s far from the only symbol of bold, 21st-century urbanism in the University Circle neighborhood” of Cleveland, according to a post from The AtlanticCities.com.

“The neighborhood has seen a diverse set of investments, including high density residential projects, new medical facilities and academic buildings, even multiple public transit initiatives,” according to the website. “University Circle now stands out as a diverse hub of activity in a city clamoring

just employees of specific organizations.

So, North Coast Credit Union in recent weeks began construction on a street-side location in Fairview Park that will move it out of its third-floor office in a Rocky River tower. The project, to be completed in February, will cost the institution more than $750,000, said manager Bryan Boyko.

That’s not the only thing that’s changed: North Coast changed its name earlier this year from United Telephone Credit Union, which reflected its previous focus on telephone company employees, and also has expanded its offerings to include debit and credit cards.

At a time when a number of smaller credit unions are merging, Mr. Boyko said North Coast Credit Union is committed to remaining independent and rolling out changes its members have requested.

“The focus has always been on the members, offering them what they’ve asked for, what they deserve,” Mr. Boyko said.

Expanding the people it can add as members eliminates some of the institution’s concentration risk and makes business sense, given some of the employment losses the organizations it used to serve exclusively have experienced, Mr. Boyko said. Today, the credit union counts some 3,000 members. — Michelle Park

for such things.”

The story attributed some of the improvement to the catalytic effect of RTA’s HealthLine, a bus rapid transit route connecting the neighborhood to downtown.

“Blessed by a significant cluster of university, medical, cultural and transit facilities, it is in a fortunate position to generate private sector development (the neighborhood has grown to support around 3 million visitors, 50,000 jobs and 10,000 residents) that many surrounding communities still cannot since losing their industrial base in the last century,” TheAtlanticCities.com said.

Maybe Ohio bankers could advise colleagues in Georgia ■ An interactive map on the website of the Federal Reserve Bank of St. Louis lists U.S. bank failures since 2007 — all 460 of them.

Relatively speaking, Ohio has been pretty insulated from bank failures. It has had only five failures since 2007, though one of them — AmTrust Bank in Cleveland, which closed in December 2009 with assets of $12 billion and total deposits of $8 billion — was among the biggest failures nationwide.

Ohio’s other bank failures were American National Bank, Bramble Savings Bank, Miami Valley Bank and Peoples Community Bank.

The Wall Street Journal noted that 84 of the 460 bank failures — 18% of the total — came in Georgia.

The number of bank failures peaked in 2010 when 157 banks were closed, the newspaper reported.

20121015-NEWS--40-NAT-CCI-CL_--

10/10/2012

1:32 PM

Page 1

BMW Cleveland

BMWCleveland.com 440-542-0600

The Ultimate Driving Machine®

EXCITING, EFFICIENT AND ROOM FOR EVERYONE.

2013 X1 xDrive28i

2013 X3 xDrive28i

2013 X5 xDrive35i Premium

30mpg hwy**, 240horsepower 2.0-liter, TwinPower Turbo, inline 4-cylinder engine, xDrive, intelligent all-wheel drive.

28mpg hwy**, 240horsepower 2.0-liter, TwinPower Turbo, inline 4-cylinder engine, xDrive, intelligent all-wheel drive.

23 mpg hwy**, 300 horsepower 3.0 liter 6-cylinder with TwinPower Turbo technology, xDrive, intelligent all-wheel drive.

$

399 mo. / 36 mo. lease

*

BMW EfficientDynamics Less emissions. More driving pleasure.

$

469 mo. / 36 mo. lease

$

*

669 mo. / 36 mo. lease

*

BMW Cleveland 6135 Kruse Dr. • Solon • 1-866-210-6710

* All are 36 month leases, with 1st payment, bank fee, and $2500.00 cash or trade due at delivery, 30K m total miles allowed, Taxes and title fees are not included. Expires 10/31/2012. 1 Whichever comes first. For full details on BMW Ultimate Service® visit bmwusa.com/ultimateservice. ©2012 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. ** EPA-estimated figures only.

XF

XJ

XK

NOW TAKING RESERVATIONS FOR

Introducing the all new 2013 Range Rover

2013 XJ

ALL-WHEEL-DRIVE

NOW TAKING RESERVATIONS

RANGE ROVER

JAGUAR CLEVELAND 6137 KRUSE DR., SOLON (440) 542-0601 www.jaguarcleveland.com

LAND ROVER SOLON 6137 KRUSE DR., SOLON 1-866-210-6707 www.landroversolon.com

6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com