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Vol. 31, No. 42
Merger and acquisition activity stirs Investors find environment favorable for buying recession-resilient companies By DAN SHINGLER dshingler@crain.com
A look around Northeast Ohio’s industrial landscape makes one thing quickly apparent: It’s a great time to sell a company.
And if local investment bankers, private equity managers and manufacturers themselves are any indication, the pace of mergers and acquisitions is only going to continue, if not accelerate, at least through the end of this year. Driving the deals is
a combination of coming tax changes, newly available cash, rising company valuations and a group of sellers that’s been kept out of the market for two years. “There are some really fine companies out there for sale,” said investment banker Ralph Della Ratta, managing director of Western Reserve Partners in Cleveland. A few of them already have been bought.
Fairmount Minerals of Chardon is cited by some in the M&A arena as the first large local company to take advantage of the new environment. In August, its owners sold a controlling stake to a New York private equity firm, American Securities Capital Partners. The sum was not disclosed, but the deal involved at least $775 million in debt that observers said probably could not have been raised in 2009.
Since then, the deals have come with increasing frequency and, as was the case with Fairmount, they’ve involved big names in the region’s industrial economy. Solon-based Keithley Instruments, which employs 550, announced Sept. 29 that Danaher Corp. was buying the maker of test and measurement instruments for $300 million. Cleveland-based Hawk Corp. See DEALS Page 5
PNC grapples with glut of empty space Bank offers subleases on eight area buildings By STAN BULLARD sbullard@crain.com
Though fresh tenants are coming, a tough economy and new rivals put pressure on what once was the hottest office market in the suburbs
From downtown Cleveland to Brook Park, PNC Bank is offering to sublease oodles of office space as the impact on the real estate market of its acquisition of National City Corp. and its subsequent cost-cutINSIDE: PNC’s ting efforts bewide open spaces. gins to surface Page 7 publicly. Friedman Real Estate Group, a brokerage in Farmington Hills, Mich., that often handles PNC properties, lists for sublease eight PNC offices totaling 374,000 square feet in the Cleveland area. They include 118,000 square feet at the old National City Bank Building, 1965 E. Sixth St. See PNC Page 7
By STAN BULLARD sbullard@crain.com
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handful of notable office tenants have made modest splashes recently with their leases in the Rockside Road area, but the economy’s ongoing weakness is washing away the impact of those gains the same way that waves last only briefly from rocks thrown in a downhill stream. Though the leases are welcome developments, the ebb and flow of leasing activity along and near Rock-
side raises the question of whether a structural change may be afoot in what once was the region’s fastestgrowing office market. Robert Redmond, managing director of the Cleveland office of Mohr Partners, said he believes the development over the last decade of office markets in Richfield, Hudson and Akron’s Fairlawn area — all south of Rockside Road and the city of Independence — are sapping the office demand that created waves of building on Rockside in the 1980s and 1990s. See ROCKSIDE Page 14
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EVENT PLANNING Exhibitors have a tight window of opportunity to pull off home and garden shows ■ Page 15 PLUS: SOCIAL MEDIA ■ RESTAURANT WEEK ■ CSU ■ & MORE
INSIDE Cavs begin new season armed with challenges The Cavaliers open their season Wednesday against the Boston Celtics, with new faces in the front office and on the bench. General manager Chris Grant must rebuild the team’s roster, but can the Cleveland Cavs attract another superstar? Read Joel Hammond’s story on Page 3.
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COMING NEXT WEEK Credit unions send a message Credit unions throughout Northeast Ohio and even the nation are spending more time and money marketing their services to prospective consumers. We explore in our Finance section the reasons why some of these financial institutions are shifting more money toward their marketing budgets.
WWW.CRAINSCLEVELAND.COM
DOING MORE WITH LESS U.S. airlines are carrying more passengers on fewer flights than a year ago, according to data from the U.S. Bureau of Transportation Statistics. Domestic and international travel on U.S. carriers was up 0.4% in July from the like month in 2009, and year to date, passenger traffic is up 1.1% despite a nearly 2% drop in the number of flights. Still, the July 2010 passenger total was 3% below that of July 2008, and the number of passengers in the first seven months of 2010 was 7.2% below the like period of 2008. Here’s the data through July this year: Domestic and international airline travel on U.S. airlines
Passengers Flights Revenue passenger miles
REGULAR FEATURES Best of the Blogs .........22 Big Issue .....................10 Classified ....................20 Editorial ......................10
Going Places ...............13 Letters .........................11 Reporters’ Notebook ....22 The Week ....................22
OCTOBER 25-31, 2010
Passengers Flights Revenue passenger miles
July 2010
July 2009
Change
68.4 million
68.1 million
0.4%
850,500
866,500
-1.9
78.2 billion
76.2 billion
2.6
2010 YTD
2009 YTD
Change
417.9 million
413.6 million
1.1%
5.5 million
5.6 million
-1.8
462.2 billion
451.4 billion
2.4
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Ad spending ascends to new mid-term high
INSIGHT
Politicans, especially in Ohio, take to digital media; third-party groups also join battle
A NEW WAY TO WORK Execs employ iPad to improve efficiency, utilize technology in business operations By CHUCK SODER csoder@crain.com
eff Binczyk owes his wife and daughter “big time” for the iPad they got him on Father’s Day. Like other executives in Northeast Ohio, the vice president of marketing at Shearer’s Foods Inc. says the iPad has altered the way he works. Mr. Binczyk starts his day with Apple’s popular tablet computer: During his hour-long commute, he opens e-mails at stoplights, and when he speaks, the iPad transcribes his words. On the morning of e Oct. 19, he wrote seven e-mails befor getting to the office, where he doublechecks the text and hits send. He uses the iPad to give presentations, view documents and manage his calendar.
J
By JAY MILLER jmiller@crain.com
Whether it is an innocuous text ad that pops up during a search engine visit or a full-blown video posted to YouTube, political candidates are throwing more money the Internet’s way this campaign season. Shed no tears, though, for television stations, which traditionally have been the big beneficiaries of campaign cash. While the Internet is taking a bigger piece of the political ad pie, the pie itself has grown much bigger this year, in large part because of third-party spending on hotly contested races.
Comprehensive numbers on spending by local candidates are hard to come by in the midst of a campaign because candidates, parties and independent committees are reluctant to tip their strategies to the opposition. The groups file campaign spending reports publicly, but they don’t file reports covering the last months of a campaign — when spending is most intense — until after the election. The last campaign reports were the post-primary election reports filed in June. Nationwide, though, the Campaign Media Analysis Group, a unit of Kantar Media that tracks political ad spending, estimates media spending See ADS Page 21
THE WEEK IN QUOTES “I’m working on some deals now and they were saying ‘If you want to be a player, you have to close by year end.’” — Eric Bacon, senior managing director, Linsalata Capital. Page One
“The problem on Rockside is more chronic than acute. ... The real issue is that we also never participated in the last recovery.” — Neil Viny, principal, Dalad Group. Page One
See IPAD Page 6
“It’s controlled chaos. The exhibitors have four days to set up, and nine to 10 hours to tear everything down.” — Sharon Gillberg, show manager for Greater Akron Home Builders Promotions Inc., which produces the Akron Home & Flower Show. Page 15
“Promoters have said the perception is that The Q is the building downtown. We’re out trying to rebrand the building that we’re back for business.” — Curtis Webb, general manager of Global Spectrum’s operations at the Wolstein Center. Page 16
Picks, salary cap space may not be enough after LeBron Veteran Cleveland agent: ‘The Cavs cannot build through free agency’ By JOEL HAMMOND jmhammond@crain.com
The Cavaliers have a new general manager and new coach. They’ve rolled out new uniforms, a multimillion-dollar team shop and a redesigned web site. Those were the easy parts. Now, that new general manager, Chris Grant, must rebuild the team’s roster through a wildly hit-or-miss draft and from a disadvantage in free agency. The Cavaliers likely will be armed with significant salary-cap space as soon as this offseason, depending
on Mr. Grant’s plan of action. Antawn Jamison’s contract expires after next season, making him a prime trade candidate for contenders. Without that $15 million on the books, the Cavs — barring other major moves — likely would be about $30 million under the salary cap heading into next season, based on this year’s cap of $58 million. But will top free agents come to Cleveland? William W. McCandless, who represents NBA players such as Orlando’s Mickael Pietrus out of his Atlanta-based Court Side Manage-
CAVS SEASON OPENER When: Wednesday, Oct. 27 Where: Quicken Loans Arena Who: Cavs vs. Boston Celtics TV/radio: Fox Sports Ohio HD, WTAM 1100 ment and Representation, says socalled “mid-level” players — those whose earnings fall below the top tier of NBA salaries — will “come to Cleveland with bells on.” “At the end of the day, nobody’s afraid of the city of Cleveland,” said
Mr. McCandless, a friend of Mr. Grant from the latter’s days with the Atlanta Hawks. “No one looks at it with any degree of trepidation.” But Cleveland-based agent Mark Termini disputes that view, and cites summer 2009 as proof: Three midlevel players — Ron Artest, Trevor Ariza and Charlie Villanueva — were on the market, and the Cavs pursued Messrs. Ariza and Villanueva. Mr. Villanueva ended up signing with Detroit for more than the Cavs could offer — they were over the salary cap — yet even with LeBron James and a championship-caliber supporting cast in the fold, none of the three visited Cleveland, not even See CAVS Page 12
KAREN SCHIELY/AKRON BEACON JOURNAL
Cavs general manager Chris Grant (left) and coach Byron Scott have a difficult task: rebuilding the Cavs’ roster.
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Financing may be in place soon to restart the long-stalled Ernst & Young Tower and the rest of the downsized, $275 million Flats East Bank Neighborhood in downtown Cleveland. Adam Fishman, a principal of Fairmount Properties, said, “We’re barreling now toward a closing” of a multifaceted financing plan. Wolstein Group, Fairmount and state and
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local governments are piecing together funding for the project. Mr. Fishman made his comments last Thursday night at a seminar sponsored by NAIOP Northern Ohio, a chapter of the trade group for real estate developers and associated vendors. The seminar, “Making Things Happen in Northern Ohio,” looked at emerging trends in financing property deals in the lingering credit crunch. However, the process remains challenging. “There is some pushing and shoving going on,” Mr. Fishman added, referring to the closing. He later declined to detail the nature of the pushing and shoving. He noted in his talk that 22 lawyers are engaged in the closing, which yokes together financing from 34 sources. The location of the NAIOP meeting was conspicuous: Shooters on the Water, a riverfront restaurant with a commanding view of the Flats East Bank project site on the other side of the Cuyahoga River. Although the NAIOP seminar had a plethora of other speakers engaged in city ventures and real estate dealmaking, downtown realty insiders viewed the venue as a sign the Flats East Bank deal would be revived before the meeting.
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In 2008, construction crews reduced to rubble the aged buildings lining Old River Road north of Main Avenue that epitomized the heyday of the East Bank in the 1980s and 1990s. But work on the project suddenly halted in October of that year with the onset of the financial crisis. Mr. Fishman outlined how the developers and their teams went about resuscitating the project in a lending environment still unkind to new real estate developments. He said that in 2008, even with revenue from the rents of the Ernst & Young and Tucker Ellis & West law firm, lenders slashed the amount of first mortgage money they were willing to provide the office tower to $44
million from $120 million. That development reflects “the catastrophic change in our industry,” Mr. Fishman said. Revival came after Scott Wolstein, chairman of Developers Diversified Realty Corp., and his mother, Iris Wolstein, pledged another $10 million to the Flats East Bank redo that the late Bertram Wolstein, their father and husband, respectively, promoted for years. With that added money, the developers went to city, county, state and federal governments to corral more cash for the project.
One step at a time The developers also initiated a phased approach for the project. The office tower, hotel and parking garage as well as a makeover of the riverfront as a public park would go first. The site at the heart of the project, residential and retail properties, will become a green space that would go second, after the development and housing market recovers. The office tower would be downtown Cleveland’s first new office building in nearly 20 years. The office tower, 150-room hotel, retail and restaurant space in the first phase makes for a 450,000-square-foot complex. Even with those steps, the process is difficult. Last December, Flats East Bank proponents had forecast work would resume this summer, but that did not happen. Cleveland City Council revised some elements of the financial package over the summer, but the closing — when all the parties formalize their roles and commit their cash to the project — lingered. Scott Wolstein, in an e-mail, labeled as an “understatement” the observation that moving the project forward in this economy was tortuous. However, Mr. Wolstein wrote that he had “nothing to add at this point.” Nancy Lesic, Flats East Bank spokeswoman, declined comment on Mr. Fishman’s remarks. ■
Volume 31, Number 42 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth 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 © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. 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
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Deals: Federal capital gains tax rate expected to change continued from PAGE 1
announced Oct. 15 that Carlisle Cos. planned to purchase the maker of friction products for brakes and clutches for $413 million. And just last week, Hexpol AB of Sweden said it would buy Solon-based Excel Polymers for $212.5 million.
Proving their mettle These companies might be attractive to buyers not in spite of the recession, but because of it. Any company doing well and earning a decent profit today has been stresstested, said Hawk president Chris DiSantis, and that’s an attractive quality to potential buyers. “Look at Hawk,” he said. “It doesn’t get much worse for us than 2009.” In 2009, Hawk’s revenues were down 35% from 2008, Mr. DeSantis said, but it still managed a profit before rebounding this year. Aside from the large companies being bought here, other local entities are involved in acquisitions, though the deals they’re cutting are often in far-flung lands and do not garner much local attention. Private equity firms such as Linsalata Capital Partners in Mayfield Heights and Riverside Co. in Cleveland busily have added companies to their portfolios. Meanwhile, manufacturers such as specialty chemical producer Omnova Solutions in Fairlawn and Akron-based plastics resins supplier A. Schulman Inc. have made strategic acquisitions of other companies in their industries to expand their offerings and markets. As for when the blizzard of activity will end, there’s some disagreement. But most think the pace will keep up through the end of this year and some think it will continue even thereafter. “I think you’ll see more activity in 2011 than you are seeing even now in 2010,” said Steve Rosen, co-chief executive officer of Resilience Capital Partners in Beachwood.
higher supply and higher demand,” Mr. DiSantis said.
A rush to year end It’s all keeping Western Reserve Partners’ Mr. Della Ratta busy. “We’re involved in 22 deals right now, but not all of them are in Ohio,” he said. “I think we’ve got two or three more that we’re about to sign up.” Mr. Della Ratta said he thinks local companies are the buyer in deals as often as they are the seller, and that international deals and strategic acquisitions of similar companies are the prevailing trends among company mergers. Among sellers, private equity firms are the most
Eric Bacon, senior managing director of Linsalata Capital.
Deal flow won’t die, but … Mr. Bacon declined comment on a recent Reuters report that Linsalata is preparing to sell Transtar Industries, a distributor of transmission parts based in Walton Hills. Reuters said Transtar is on the block for about $700 million. Generally, though, Mr. Bacon said sellers are rushing to get their deals done before the end of this year and, after that, there will not be as much urgency to sell. “I’m working on some deals now and they were saying, ‘If you want to be a player, you have to close by year end,’” Mr. Bacon said.
Mr. Bacon said his firm’s deal flow picked up in July and August and since has slowed a bit. He’s one who thinks the wheeling and dealing will slow soon, but not come to a virtual stop as it did during the financial crisis and recession. Deal flow, he said, is significantly greater than it has been in the last two years. That’s a trend Mr. Bacon said will continue through 2011, even if the pace does slow from its current rapidity. Mr. DiSantis agrees, saying, “I wouldn’t be surprised to see a weak January and February in the deal market. Anyone who could compress their schedule pulled everything they could into December.” ■
Better information leads to better health.
Confluence of influences There are several factors making the deal flurry possible. For one, companies are profitable again after the downturn of 20082009. The rebound in their bottom lines means when companies are priced for sale, generally using some multiple of their earnings, the price once again is high enough that sellers are interested. Also, sellers are trying to avoid an increase in the federal capital gains tax rate, set to rise next year to 20% from 15% and widely expected to increase down the line. And then there’s the impact of private equity firms, such as Mr. Rosen’s Resilience Capital. Typically, these firms raise money from investors with a plan to invest the money by buying private companies, holding and improving them for five to seven years, and then selling them at a profit. During the financial crisis and recession, those sales could not be made, even though the investments had matured. So private equity firms have a pent-up need to divest some of their holdings, Mr. Rosen said. Finally, would-be buyers again are able to buy. Funds and financial buyers have access to credit again and many companies that survived the downturn amassed large war chests of cash in the process. “What you’ve got going on in the market right now is a combination of
active right now, he said. That jibes with what Mr. Rosen said he’s experiencing. “We’re in the process of selling three companies now,” Mr. Rosen said during a telephone interview from the airport last Tuesday, Oct. 19, before he left for his next deal. But some think the spate of sales will last only through the end of this year, before tapering off or even declining in 2011. Sellers know the capital gains tax is going to increase on Jan. 1, which could have the same accelerating effect on corporate acquisitions that the expiration of the homebuyers tax credit had last spring on residential real estate sales, predicts
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Chardon Rubber pensions rescued iPad: Device’s many Federal agency will cover underfunded plan capabilities draw execs By MILES MOORE Rubber & Plastics News
WASHINGTON — The Pension Benefit Guaranty Corp. has stepped in to take responsibility for the underfunded pension plan of a Northeast Ohio rubber products manufacturer that declared bankruptcy last year. The PBGC announced last Tuesday, Oct. 19, it will cover the Chardon Rubber Co. Retirement Plan and the more than 840 workers and retirees under the plan. With assets of $16.8 million and $29.5 million in liabilities, the pension plan for the former Chardon Rubber is only 57% funded, the PBGC said. The PBGC expects to cover $12.4 million of the $12.7 million shortfall. The Chardon Rubber pension plan officially ended Dec. 31, 2009 — the day the firm sold its plastics products business, leaving only the custom mixing operations that became a new firm, Chardon Custom Polymers LLC. According to the PBGC, the agency officially assumed responsibility for the plan Sept. 23, 2010.
Chardon Rubber filed for Chapter 11 bankruptcy protection from creditors May 15, 2009. Under the Pension Protection Act of 2006, the maximum guaranteed pension the PBGC can pay is determined by the legal limits in force the day bankruptcy is declared. On May 15, 2009, that limit was $54,000, the PBGC said. The maximum guaranteed pension will be lower for those who retire earlier to elect survivor benefits, the agency said. Also, certain early retirement subsidies and benefit increases made less than five years before the bankruptcy may not be fully funded, it said. The PBGC said it will send out notification letters to plan participants within the next several weeks. Created under the Employee Retirement Income Security Act of 1974, the PBGC currently guarantees the payment of basic pension benefits for some 44 million U.S. workers and retirees participating in more than 29,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues, but is financed largely by investment returns and by
insurance premiums paid by companies that sponsor pension plans. Chardon Rubber, founded by Jefferson W. Keener Jr. in 1978, was for many years a highly successful diversified rubber and plastics products manufacturer. However, the economic downturn, mixed with spiraling raw materials costs and the loss of several key customers, forced the company to file for Chapter 11. The firm sold its rubber compression and injection molding business, along with the Chardon Rubber name, to Wabtec Corp. in July 2009. The sale of its plastics business to an unidentified buyer followed last December. Chardon Custom Polymers began business in May 2010 in a portion of the former Chardon Rubber plant in Chardon. Since then, the business has been expanding slowly but steadily, according to president Marian Keener DeVoe. Chardon Custom Polymers started with about 15 employees, but has risen to 18 with the hiring of new sales and manufacturers’ representatives, she said. ■
Miles Moore is senior Washington reporter with Rubber & Plastics News, a sister publication of Crain’s Cleveland Business.
continued from PAGE 3
He even has bought a $10 stylus and downloaded a $2 app that lets him write on documents as if he were using a red pen. And here he was thinking he would just use the device for checking Facebook and watching movies. “It has literally changed my marketing life,” said Mr. Binczyk, one of several Shearer’s executives using iPads. Individual executives and sales people are finding plenty of business uses for their iPads, said Ted Schadler, vice president and principal analyst at Forrester Research Inc. The tablet computers often don’t replace laptops completely, but they’re a great complement, he said, adding that they are easier to carry and less expensive than high-end laptops.
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ArtCarve, Inc. Cleveland Slate & Copper Document Specialists Grout Perfect J.L. Motor Sport Mo Vaughn Transport Panini’s Bar & Grill The PDI Group Tuesday Morning
High praise indeed The iPad also boots up faster than a laptop, said labor and employment lawyer Stephen Zashin, who described it as “the greatest device ever made.” One downside, though, is that it can’t access some of the software that his firm, Zashin & Rich Co., runs on its BlackBerrys. “I wish the two would talk to each other better,” said Mr. Zashin, co-managing partner at the firm, which has offices in Cleveland and Columbus. Mr. Zashin still uses his laptop on occasion, as does Tim Mueller, Cleveland-based CEO of telecommunications technology firm
“(The iPad) has literally changed my marketing life.” – Jeff Binczyk, vice president of marketing, Shearer’s Foods Inc. “It’s a great third device,” Mr. Schadler said. “You’ve got your smart phone, you’ve got your laptop, you’ve got your iPad.”
It’s right for writing
The Solon Select is a distinguished group of more than 800 businesses that have chosen to locate in the City of Solon.
with a PowerPoint presentation. “If you want to write and take notes, the iPhone is so small,” he said.
Though most companies interested in broadly deploying iPads are just experimenting with them, a few local firms already have put them to use. Arhaus Furniture of Walton Hills announced in July that it would buy 50 iPads this year to replace the BlackBerrys in the furniture dealer’s delivery trucks. And Bill Proctor, president of Epicenter Development Group LLC in Brecksville, said his engineering consulting firm is working with manufacturers in Twinsburg and Brunswick that are starting to use iPads to track shop floor data, though he declined to identify them. For the most part, though, individual executives and employees are the ones finding business uses for the tablet computer. Mr. Proctor said his iPad helps him show manufacturing clients the simulations he creates so they can see how certain process changes might impact their daily operations. The iPad’s battery life is 10 hours, far better than your typical laptop, and its larger screen makes it more versatile than the iPhone, Mr. Proctor said. For instance, two weeks ago he used its wireless Internet capabilities to attend a virtual meeting, complete
Phylogy Inc. in Santa Clara, Calif. Though a keyboard is available for the iPad, Apple should make an iPad that “would actually be the screen of your laptop that detaches,” said Mr. Mueller, who joked that the iPad is connected to his left arm. It’s particularly good for taking notes during meetings, Mr. Mueller said. “You don’t have the obtrusive wall that a laptop creates when you’re meeting with somebody,” he said.
Mr. Krebs’ purse When he travels to Silicon Valley for events, Mr. Mueller said, he sees lots of executives using iPads. They aren’t quite as common here. That situation may change: Information technology research firm Gartner Inc. expects consumers worldwide to buy nearly 20 million tablet computers this year and almost 55 million next year. The iPad, in particular, is spreading quickly, according to Valdis Krebs, chief scientist at social network analysis software and services firm Orgnet.com in Rocky River. He described how, on a recent flight to Dallas, he saw all types using the machine — men and women, geeks and soccer moms. Mr. Krebs was one of them: The iPad has replaced both his laptop and his briefcase. His wife says he carries it more than she carries her purse. “I take it with me everywhere,” he said. ■
And thanks these real estate professionals for bringing new business to Solon: Jeffrey Calig - NAI Daus Terry Coyne - Grubb & Ellis David Hexter - NAI Daus Mike Petrigan - Grubb & Ellis Dave Stover - Chartwell Group, Inc. Lisa Trevino - NAI Daus Steve Voinovich - CB Richard Ellis Lisa Weiner - The Coral Company Allen Wiant - CB Richard Ellis Jim Wolf - Kowit & Passov Real Estate Group
Solon’s Got It!
Prime industrial, office and retail sites at www.solonohio.org City of Solon • 34200 Bainbridge Road • Solon, Ohio 44139 • 440.337.1313 Peggy Weil Dorfman, Economic Development Manager • pweil@solonohio.org
HURTUK & DAROFF CO., LLP is pleased to announce that
JEREMY S. SOSIN has joined the firm as a partner.
The firm represents clients in real estate and finance transactions on a national basis. 6120 Parkland Boulevard, Suite 100 Cleveland, Ohio 44124 (440) 605-6660 www.hurtukdaroff.com
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PNC: Office tower occupancy ‘good news’
PNC OFFICES HIT SUBLEASE MARKET
continued from PAGE 1
National City East Sixth Street, Cleveland
in downtown Cleveland, and the entire 90,000 square feet of the Aerospace Technology Park 2001 Building in Brook Park. David Browning, managing director of the Cleveland office of CB Richard Ellis, reflected on the extent of the PNC space hitting the market with a one-word comment: “Ouch.” However, Mr. Browning said he believes the sublease offerings may have a muted effect on the market at large because they are spread among different types of buildings and throughout Greater Cleveland. CB Richard Ellis already puts downtown vacancy at 21% and suburban vacancy at 23% as of Sept. 30. Michael Cantor, a principal at the Allegro Realty Advisors consulting firm, said the “good news side of the story” is that the marketplace was worried that the 31-story PNC Center in downtown Cleveland might be emptied after PNC acquired National City. “Instead, it’s good to see the downtown receiving some benefit” as PNC consolidates in the office tower some personnel from other offices, Mr. Cantor said. When Allegro consultants have queried about the availability of space at PNC Center, they were told no space is available, he said.
So long, Spangenberg PNC’s direction at PNC Center is such that the law firm Spangenberg, Shibley & Libor LLP moved late last year to North Point Tower because the banking company wanted the law firm’s space for itself. Peter Weinberger, managing partner of Spangenberg Shibley, said when the firm sought to exercise an option to renew, PNC said it would be willing to work out a price but just as soon would like the entire 24th floor for bank employees. The bank also was unwilling to consider a request to shrink Spangenberg Shibley’s lease to 10,000 square feet from 17,000 square feet, Mr. Weinberger said. “It was clear they did not want to be a landlord anymore,” he said. Spangenberg Shibley’s exit leaves Baker Hostetler as the sole outside office tenant in the tower, Mr. Weinberger said, which online realty data provider CoStar confirms. PNC spokesman Fred Solomon said in an e-mail that the bank is “committed to the downtown tower and maintaining a significant presence downtown, and at the operations center in Cleveland as well as our Brecksville site.” He said the company does not discuss staffing levels at single locations as a matter of policy.
Economizing on space PNC’s intention to shave office expenses throughout its far-flung holdings is well-known. The bank said earlier this year it is moving to a corporate standard of 180 square feet per employee from about 300 square feet. “PNC is working to more efficiently use its space in the Cleveland area and enhance work flow by moving our teams nearer one another,” Mr. Solomon said. Those efforts already have changed some operations dramatically. The city of Brook Park has determined the Aerospace 2001 building is empty, but PNC still has employees and contractors in the Aerospace 3000 building — also offered for sublease through Friedman Real Estate. Another building, the Aerospace 2000 building, remains full of PNC staffers, according to Michelle
Boczek, Brook Park commissioner of economic development. PNC has not communicated its office plans to the city, Ms. Boczek said — something National City used to do. But because she knows the Aerospace 2001 building is empty, she submits the space to the Ohio Department of Development when the state circulates on behalf of wouldbe tenants requests for proposals on a confidential basis. “It’s hard to do more without knowing more,” Ms. Boczek said. Aerospace Technology Park belongs to Chelm Properties of Solon, which declined comment.
This might hurt The offices PNC hopes to sublease
carry varied remaining lease terms. The shortest is as little as a week — through Sunday, Oct. 31, for 31,000 square feet at Eaton Center that CB Richard Ellis already is marketing for the building owner. The longest sublease is for 24,000 square feet at the Hanna Building; it does not expire until Oct. 31, 2018. Alex Jelepis, a Grubb & Ellis Co. broker, said subleases with less than two years are tough to market because companies generally do not want to undertake expensive moves for such short periods. He said a full-floor, 51,000-squarefoot office space that Friedman is marketing at 200 Public Square (formerly BP Tower) will attract interest because the sublease lasts three more
Building
Size of sublease* 118,000 sq. ft.
Aerospace 2001, Brook Park
90,000
200 Public Square, Cleveland
51,000
Eaton Center, Cleveland
31,000
16035 Industrial Parkway, Cleveland
28,000
Aerospace 3000, Brook Park
27,000
Hanna Building, Cleveland
24,000
One Cleveland Center, Cleveland
5,000
* ROUNDED/SOURCE: FRIEDMAN REAL ESTATE GROUP, PNC WEB SITE
years. Tom Gustafson, an OstendorfMorris Co. senior vice president, compares the PNC space disposition to prior corporate consolidations and moves that have roiled the
city’s office market. “Will it hurt? Yes,” Mr. Gustafson said. “It means there is more empty office space on the market. It’s not healthy,” he said. ■
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AUTHORING A SAAB STORY Auto dealer Bernie Moreno, who already has sunk millions into buying and updating dealerships selling Mercedes-Benz, Porsche and other high-end models, is about to spend some more to put Saab on ice. Mr. Moreno will spend about $3 million to remodel a 21,000 square-foot former carpet and tile store in North Olmsted into a Saab dealership designed to look almost as though it were made out of ice. A similar store, which uses the same high-tech lighting and large frosted-glass façades that Mr. Moreno will employ, exists in London. The dealership, which is now under construction and should be completed by the end of this year, was designed by Forum Architects of Cleveland. WZX Development of Fairview Park is building it. About 10 jobs will be created when Mr. Moreno expands his existing North Olmsted Saab dealership into the new facility. — Dan Shingler
Page 1
BEFORE
OCTOBER 25-31, 2010
Ohio colleges consider consolidating some administrative tasks HR, IT among areas potentially under scrutiny By TIMOTHY MAGAW tmagaw@crain.com
AFTER
Taking a page from the corporate world, Ohio’s 14 public colleges and universities are exploring the option of consolidating some of their administrative services to increase efficiency and ease the brunt of possible future cuts to the state’s higher education budget. The Inter-University Council — a consortium of the state’s public universities and colleges — is searching for a consulting firm to study the feasibility of creating a standalone administrative services center, which ultimately could save colleges money, according to Jim Kemper, who’s leading the initiative at the council. Although still in its infancy, the idea is to look at all 14 schools and identify what services could be shared among the institutions. The study, which they hope would be completed by the end of February, will look at such areas as human resources, finance, information technology and supply chain management.
up to buy those unique things for your campus.” “We’re never going to be done,” Mr. Fingerhut said. “It’s just like every private business that needs to continuously become more productive to increase profits and sales.” A few shared services organizations have been introduced to higher education systems throughout the country. In Pennsylvania, for example, a group of six independent colleges partnered to form a jointpurchasing program. Meanwhile, the University System of Georgia has consolidated its payroll services for all of its member institutions.
Catalyst for consolidation Like other areas that depend on state support, higher education has felt the crunch of Ohio’s fiscal woes. The state cut $170 million from its higher education budget for the 2010-2011 fiscal year. The state also has delayed a $127.5 million payment into next year, which many universities are treating as a flat cut. Both Messrs. Kemper and Sage
“It’s just like every private business that needs to continuously become more productive.” – Eric Fingerhut, chancellor, Ohio Board of Regents “Some of the transactional efforts, perhaps in the end, are contributing to higher tuition costs,” Mr. Kemper said. “We’re hoping we can eliminate some of those redundancies.” Jim Sage, chief information officer at the University of Akron, said most of these types of administrative services are done similarly across campuses throughout Ohio, so combining them into some sort of centralized unit makes sense. “Those functions no longer provide competitive differentiation,” Mr. Sage said. “We’re all operating pretty much the same way.”
Fewer hands, more work Those involved with pursuing the idea are quick to say that the final product — if implemented — does not necessarily mean layoffs. “There’s not going to be a massive layoff,” Mr. Sage said. “It’s just not possible.” The idea, Mr. Sage said, is to create a new business model. As it starts to take hold, Mr. Sage said employees likely wouldn’t be replaced as they retire or leave for other jobs. “The reality is that these things take years to do,” Mr. Sage said. “This isn’t something you do overnight. The private sector has been sharing services for many, many years. We are just now beginning to introduce the concepts in higher education.” Eric Fingerhut, chancellor for the Ohio Board of Regents, has touted efficiency as part of his strategic plan for higher education in Ohio. He said there wouldn’t be issues of universities suffering an identity crisis by losing some of these services. Consolidating those “backroom services,” he said, “frees you
noted that the uncertainty of what future state budgets hold was what led the Inter-University Council to identify ways to achieve long-term cost savings. Gregg Floyd, Kent State University’s vice president for finance and administration, said he’s eager to see what the study reports. Implementing such a large-scale operation could present challenges, Mr. Floyd said, but he’s interested in looking at anything that might save the state some money. “I certainly want to bring an open mind to the process and see what it shows, but there are a lot of dissimilarities between the schools in terms of systems and policies,” he said. Meanwhile, Cleveland State University has looked at ways to cut costs and already has outsourced many basic services such as food and parking, according to university spokeswoman Joe Mosbrook. Looking at a shared services approach, he said, is another one of those possibilities. “The idea is to save money, and we’re always looking at ideas to cut costs,” he said. “This process will help identify ways colleges in Ohio can consolidate services and cut costs.” The University of Akron and Lorain County Community College are already in the midst of a shared services pilot program. The community college, for example, shares Akron’s administrative software system. “It was the catalyst required to begin thinking about it on a broader scale,” Mr. Sage said about the program. “What we’ve built with Lorain could potentially be leveraged to serve other schools.” ■
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OCTOBER 25-31, 2010
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Fear factor
H
ere’s a frightening statistic, courtesy of Guhan Venkatu, an economist at the Federal Reserve Bank of Cleveland: Nearly one homeowner in 10 is more than 90 days delinquent on his or her mortgage payment. Here’s another: According to the Mortgage Bankers Association, about 4.1 million borrowers are in foreclosure or near it, inclusive of the delinquent borrowers cited above. If you thought the housing glut that is stalling the economy’s recovery couldn’t get worse, think again. The scope of the mess is why so many people are outraged by revelations that employees at various big banks signed tens of thousands of foreclosure documents without reviewing their contents. The socalled robo-signings give the impression of a cookiecutter approach to a problem that begs for banks to give ample consideration to measures short of foreclosure to deal with delinquent borrowers. Cleveland Fed researchers Francisca Richter, Lisa Nelson and Youngme Seo highlight the need for banks and policy makers to consider and track alternative loss-mitigation strategies in their new study, “Mortgage Delinquencies in Ohio: Are Loan Modifications Stemming the Tide?” The short answer to the question they pose is “no.” Their findings indicate two Obama administration initiatives — a loan modification program and a refinance program — are addressing only a small part of the delinquency problem. However, the researchers do see a bright spot amid the gloom. “While our examination shows that relatively few delinquent loans in Ohio are being modified, recent modifications appear to be more successful than past ones,” the researchers state. They attribute the uptick in part to “a steady move toward more concessionary modifications and away from modifications that did not take affordability into account.” A lender shouldn’t forestall a foreclosure if a borrower is way behind on his or her payments. As the Cleveland Fed’s Mr. Venkatu notes in his own study of the ongoing threat to the housing market presented by serious loan delinquencies, many borrowers never will make good on their mortgages even if a lender extends them grace. They have no incentive to maintain their homes, and they even abandon them, to the detriment of the housing values of their neighbors. However, not all delinquencies are created equal, and enough horror stories about questionable foreclosure actions have popped up in the media that we’re inclined to believe loan modification may be a better way to address more than a few cases. Drs. Richter and Seo and Ms. Nelson suggest in their study that modification stands a better chance if lenders are willing to make concessions such as reducing interest rates. They also note that short sales and deed-for-lease actions, which allow former owners to stay in their homes as renters, are alternatives lenders should give greater consideration. Their biggest plea is for banks and policy makers to pay heed in coming months to alternatives that allow lenders to mitigate their losses yet let more borrowers keep their homes. Let’s hope their words don’t go unnoticed.
FROM THE PUBLISHER
Digital news augments print product
S
industry standards. In other words, o last week, we made a change to they’re popular, and that’s our problem. one of our most popular products, Now, please don’t get me wrong. We love and it irritated a few people, that our products enjoy a strong and loyal which prompts me to do — as a following. The problem is that those former Cuban bandleader used to say — receiving them have this misconception “some ‘splainin.’” that they’re getting all of our information OK, I know the reference to Desi Arnaz — and they’re not. dates me and will make no sense to the That’s right: If you have put young business folks reading your printed copy of our newsour paper and e-mail news BRIAN paper on the corner of the desk, alerts, or perusing our web site. TUCKER thinking you’re getting all that (Of course, there is TVLand, the information from our e-mails cable channel that brings ’50s … well, you’ve got a lot of reading television to life, so perhaps to do. there’s hope.) We produce one weekly e-mail But I digress. Many of you are product that contains links to a registered for our free news few of that week’s newspaper alerts and have come to rely on stories, but they’re only clickthem each business day. There able by registered users who is the Morning Roundup, a colalso are print subscribers. Each week, lection of business news from Ohio’s our newspaper has many stories that are daily and weekly newspapers, as well as available only to paid digital or print subCrain’s Daily, an afternoon combination scribers. If you’re putting off reading that of business news from our staff and a week’s issue, you’re simply missing very terrific collection of blogs. important stories and features. About 20,000 people receive these An example: Last week, we published e-mails each day, and their open rate is profiles of the finalists in this week’s CFO extraordinarily high when compared to
of the Year event at LaCentre. Your client or customer might have been among them, but it’s too late now. The event is sold out, with 600 people coming. In the weeks before, we printed important stories about positive developments in our economy that would surprise some naysayers. The fact is that each and every week, our pages contain a wealth of information you simply can’t “just go to the web and read,” something I hear from people accustomed to using the Internet for commoditized news such as sports scores and national news headlines. Also, our new design of the e-mails requires users to click once more for depth on a story they want. That’s intended to drive traffic so that we can sell advertising and keep delivering these great products to you free of charge, at least for now. Each week, Crain’s Cleveland Business publishes an array of stories, features and market data, but you just can’t get it all without reading the printed issue. So keep opening and reading our e-mails, but don’t forget: that’s just part of our news package. ■
THE BIG ISSUE There’s always a lot of talk about what government does wrong. In your opinion, what’s one thing government does well? Why?
RICHARD ORITI
KAREN MAHMET
FRANCIS MACUGA
SANDRA DULANEY
University Heights
North Olmsted
Euclid
Cleveland
Collect revenue, taxes. That’s something they do well. They take a lot of one’s income and redistribute it, so to speak.
I think they’re keeping us safe from terrorists. I’m surprised there haven’t been roadside bombs over here yet. That’s all you hear on the news, is roadside bombs in Afghanistan (and) Iraq.
I think they try to help the lowly people. Sometimes, I’m just glad that there are people that want that position because it’s a thankless job.
Personally, I think that they’re doing the best they can with what they have. There is a lot of negativity, but yet negativity gets no one anywhere.
➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.
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OCTOBER 25-31, 2010
PolyOne bolsters bottom line By FRANK ESPOSITO Plastics News
As it sets sail for Germany and that country’s big K 2010 international plastics and rubber trade fair, PolyOne Corp. hopes its recent run of good fortune can continue. The polymer compounding company based in Avon Lake is on track to post its second straight profitable year in 2010. And while that may seem like faint praise, it is music to the ears of chairman and CEO Stephen Newlin. “We’ve done a whole culture transformation,� Mr. Newlin said. “We’re now focused squarely on our Newlin customers and have higher expectations and accountability. Our focus is on new customers and prospects, and we’re driven around customer needs.� Those changes also have produced results on PolyOne’s bottom line. In 2007 — Mr. Newlin’s first full year at the helm — PolyOne eked out an $11.4 million profit on sales of about $2.6 billion. The economic flameout of 2008 hit PolyOne hard, as it posted a loss of almost $275 million on sales of about $2.7 billion. After some tough choices in 2009 — closing a plant in Ontario and cutting almost 400 jobs companywide — PolyOne turned the corner in 2009, earning almost $70 million on slimmed-down sales of $2.1 billion. “We did a customer survey right after I started, and a number of people said we were difficult to do business with,� Mr. Newlin said. “On product quality, nothing stood out. In delivery and innovation, we
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were right in the middle of the pack. “That wasn’t good enough. We wanted to be the best in all stages. Our on-time delivery ranged from 81% to the mid-90s. Why would you buy from us? “I don’t think we were arrogant, but we had grown complacent with our customers. We used to go after volume. But that’s not our game anymore.�
Strutting its stuff At the K show, which runs this Wednesday, Oct. 27, through Nov. 3, PolyOne will be highlighting several new or recently introduced materials, including: ■OnColor Complete, an eco-friendly liquid colorant system that PolyOne said can help processors and original equipment manufacturers reduce their costs of operations while eliminating waste and enhancing employee safety. ■OnFlex-brand non-halogen flame-retardant, non-phthalate thermoplastic elastomers — a line from PolyOne’s GLS unit aimed at the wire and cable market. ■Compounds, additive and colorant solutions for photovoltaics, for use in back-sheet laminates and wire in solar energy and related markets. ■Halogen-free Eccoh-brand compounds, which provide structural strength, antimicrobial controls and other properties to the medical market. “The K show is important to us because we’re a global player,� Mr. Newlin said. “There will be a lot of suppliers and business customers there.�
Pursuit of parallel paths Regarding two of PolyOne’s main end markets — automotive and construction — Mr. Newlin said the company “is dealing with things we can control and influence.â€? “We can’t control how many houses or cars are built,â€? he said. “We’ll never fully abandon these markets, but we need to find ways to grow when they’re down.â€? Although the U.S. housing market eventually could get back to its 50-year average of about 1.5 million new units built per year, the peak of 2 million “won’t be seen again,â€? Mr. Newlin said. The CEO also anticipates a change in the previously close relationship between housing starts and the performance of PVC-based products such as the compounds that remain a large business for PolyOne. “People are going to have less to spend on a new house, and we need to match that,â€? he said. PolyOne is working in a challenging market space where it’s entering into sustainable products while still being a big developer of PVC, a resin that’s been targeted by environmentalists for many years. “We need a sustainability line that goes all the way across our product line,â€? Mr. Newlin said. “But PVC is really difficult to replace unless you can replace its economics. “Everybody’s for green products — it’s like apple pie — but they don’t always want to pay a 30-to40% premium. So there’s not going to be a sea change. We’ll continue to pursue parallel paths.â€? â–
LETTERS
Crain’s Kasich support draws big question mark ■I find it super cynical for Crain’s to endorse John Kasich for governor, particularly in light of your own, Oct. 11 Page 3 story detailing multiple expert opinions that his primary proposal to privatize business development for Ohio will probably not work. Regarding staff bonuses for development officials, he proudly proclaims, “We will not require them to disclose their bonuses.� Where is the transparency? The best you can say is that he chaired the House Budget Committee. However, he did not “preside over� the success of the Clinton years. President Clinton ended with a huge budget surplus in spite of Mr. Kasich. Alan M. Wolk Solon
A clear oversight ■After reading Brian Tucker’s comments in his Oct. 18 commentary, “Where’s the ad touting Third Frontier?� a few thoughts came to mind. I, too, am curious to understand why both Gov. Ted Strickland and his opponent, John Kasich, have not mentioned the Third Frontier. It is
one of Ohio’s best programs and it actually has done what it was designed to do: help businesses expand and create employment. Is it because both candidates want to keep their distance from Bob Taft, who initiated the program? If Mr. Strickland touts it, he is likely to be pummeled with the fact that a Republican created it. If Mr. Kasich promotes it, he has a good chance to create a link to Taft’s less-thanoptimal performance as governor. Also, as a friend pointed out, should Mr. Kasich mention it, he would not have an opportunity to meddle with it. Either way, it could give the two candidates more opportunity to continue the negative campaigning, and voters deserve better than that. Obviously, the Third Frontier is important to Ohioans who renewed the bond issue for it. It certainly holds more promise for our state’s future than using slot machines to balance the budget. John Hoopingarner Vice president Seneca Tape & Label Inc. North Royalton
WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 e-mail: editor@crainscleveland.com
Frank Esposito is senior reporter with Plastics News, a sister publication of Crain’s Cleveland Business.
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OCTOBER 25-31, 2010
Cavs: Team stockpiles draft picks, but they’re no sure thing continued from PAGE 3
to drive interest from other teams. Mr. Artest signed with the Lakers and Mr. Ariza with Houston. “The Cavs cannot build through free agency,” said Mr. Termini, a longtime agent and founder of Mark Termini Associates. “It’s been proven for 40 years. In the mind of
the NBA player, Cleveland is not a destination city. “That being said, all pro athletes go where the money is. An NBA free agent who has options will not come to Cleveland unless the Cavs are significantly more aggressive with their offer to the player.” That’s what the Cavaliers did in
2005, in their first significant foray into free agency in years: They signed Larry Hughes, Donyell Marshall and Damon Jones — a Termini client — at above-market prices. None of the three finished their contracts here.
There’s a draft in here The Cavaliers have spent the
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summer stockpiling draft picks: By signing LeBron James and trading him to Miami, the Cavs received two first-round picks and two second-round picks. In their trade with Minnesota for guard Ramon Sessions and center Ryan Hollins, they landed the Timberwolves’ 2013 second-rounder in exchange for the expiring contracts of Delonte West and Sebastian Telfair. But those picks are no guarantee for a dramatic turnaround. A Crain’s analysis of the draft since 2000 shows that four teams — Chicago, Memphis, Los Angeles Clippers and Atlanta — picked in the top five of the draft four or more times, and together, those teams have reached the second round of the playoffs only four times. Five teams — Chicago, Memphis, Los Angeles, Seattle/Oklahoma City and Golden State — have picked in the top 14 eight or more times in that span; those teams have reached the second round of the postseason a combined three times. Moreover, the NBA has turned into a league where seemingly only the teams with superstars can win: Kobe Bryant has won the last two NBA championships; Kevin Garnett, Ray Allen and Paul Pierce teamed up in 2008; Tim Duncan beat the Cavs in 2007 and Detroit in 2006; and LeBron’s new sidekick Dwyane Wade and old pal Shaquille O’Neal beat Dallas in 2005. Only now are the Bulls, for example, ready to take on the Eastern Confer-
ence’s elite, with budding star point guard Derrick Rose leading the way. Since 2000, the Bulls had five other picks in the top five. “You have to draft smart, talented players,” said Darren Heitner, founder of Dynasty Athlete Representation in Hollywood, Fla., and editor of the popular Sports Agent Blog. “If they (the Cavaliers) do that, they’ll be able to bring in free agents.” Regardless of whether that happens, Mr. Grant can make trades to improve the team, as the Cavaliers did with Messrs. Jamison and O’Neal, Mo Williams and others. Cavs owner Dan Gilbert has shown he’s willing to fork over his money, and with the potential aforementioned salary-cap space, the Cavs can absorb another team’s bloated contract while acquiring a star, often a required concession in such deals. The league’s negotiations with the players’ association, though — the current collective bargaining agreement expires after this season — might hinder those efforts: Commissioner David Stern has claimed the league’s owners lost a collective $400 million last year, and part of the league’s wish list includes a “hard” salary cap, resembling the NFL’s. Under that system, teams no longer would be able to exceed the salary cap to acquire players or sign their own players, a tactic the Cavs used in nearly each of the aforementioned trades. ■
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GOING PLACES JOB CHANGES ARCHITECTURE MBI K2M ARCHITECTURE INC: Kyle L. Johns to project coordinator. TC ARCHITECTS: Paul Gierlach to project manager.
DISTRIBUTION APPLIED INDUSTRIAL TECHNOLOGIES: Mark A. Stoneburner to vice president of enterprise transformation. GARICK LLC: Enrico Varricchio to chief financial officer; Kim Eger to vice president of retail lawn and garden sales; John Katlen to sales engineer; Anita Silvestro to IT support.
EDUCATION KENT STATE UNIVERSITY: Jeff Moelich to Goodyear executive professor, College of Business Administration and Graduate School of Management; Chaya Kessler to director, Jewish Studies Program, Colleges of Arts and Sciences.
Lauren Reed to account planner; Kelly Wanstrath to research manager.
Dan Reynolds to chief financial officer.
secretary; Bob Gage to treasurer.
TECHNOLOGY
AWARDS
ENCOMPASS GROUP LLC: Christopher Lester to infrastructure engineer.
NONPROFIT JUDSON SERVICES INC.: James J. Carnovale to senior vice president, chief financial officer.
BOARDS Gierlach
Stoneburner Moelich
REAL ESTATE REALTY CORPORATION OF AMERICA: Marianna Jackson to sales associate.
AMERICAN SOCIETY OF INTERIOR DESIGNERS OHIO NORTH CHAPTER 2011: Sandra Varelmann to president; Rita Amonett to presidentelect; Lisa Amiri to financial director. GREATER CLEVELAND DENTAL SOCIETY: Dr. Roger Hess (Periodontal Associates) to president.
RUSSELL REAL ESTATE SERVICES: Joanne Smallwood, Jeff Cain, Mohammad Abuzahrieh, Joann Obermiller and Cindy Wisniewski to sales associates.
to president, talent optimization.
SERVICE
PAY GOVERNANCE LLC: Don Kokoskie to partner.
CAREERCURVE: Edward J. Barton
UTILITY CHOICE INTERNATIONAL:
Kessler
Reynolds
Hess
IABC CLEVELAND: Sharon Lamcha to president; Kavita Sherman to past president. PARMA COMMUNITY EMERGENCY RESPONSE TEAM: William Kesman to president; Kevin Niswonger to vice president; Patricia Sas to
13
FEDERATION OF GERMAN-AMERICAN SOCIETIES OF GREATER CLEVELAND: Diana Thimmig (Roetzel & Andress) received the 2010 GermanAmerican Woman of the Year Award. NORTHERN OHIO AREA CHAMBERS OF COMMERCE: Susan Amoroso (Walthall, Drake & Wallace LLP) received a 2010 Bright Star Award. OHIO CRIMINAL JUSTICE COORDINATING CENTER OF EXCELLENCE AND THE NATIONAL ALLIANCE ON MENTAL ILLNESS OF OHIO: Jeff Futo (Kent State University) received the 2010 Campus Crisis Intervention Team Officer of the Year Award.
Send information for Going Places to dhillyer@crain.com.
FINANCE CHARTER ONE: Carrie Carpenter to senior vice president, director of public affairs; Nathan Nosal to assistant vice president.
Piling the family into the car and driving
OHIO COMMERCE BANK: Richard Miller to senior vice president, chief financial officer.
you’re supposed to relax on vacation?
to the Grand Canyon? Am I wrong to think
FINANCIAL SERVICE CIUNI & PANICHI INC.: Danielle Grispino, Matthew Kegyes and Dana Skully to managers; Daniel Reilly and Justin Williams to senior accountants.
HEALTH CARE UH CASE MEDICAL CENTER AND CASE WESTERN RESERVE UNIVERSITY SCHOOL OF MEDICINE: Dr. James Levine to chief, Division of Endocrinology, Department of Medicine.
LEGAL ULMER & BERNE LLP: Daniel A. Gottesman to associate.
MANUFACTURING FD JOHNSON CO.: Chip Hautala to chief information officer and chief financial officer.
MARKETING HITCHCOCK FLEMING & ASSOCIATES INC.: Shelly Morton to team leader, account supervisor of interactive;
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Rockside: Location an advantage continued from PAGE 1
Still, much of the problem, he concedes, is due to the weakness of the national and local economy so even tenants that might need to grow stay put rather than take available space along Rockside. “The market is constipated,” Mr. Redmond said. “Tenants just want to stay where they are and blend and extend their leases where they are. And their landlords are happy to keep them.” Other brokers and owners do not disagree with his characterization of the situation in the southern suburbs. However, Neil Viny, a principal of Dalad Group — the developer with the largest stake in office buildings and land in the Rockside Road area
— chalks up the stagnation to longer-term issues. “The problem on Rockside is more chronic than acute,” Mr. Viny said. “We haven’t been decimated by the deep recession. However, the real issue is that we also never participated in the last recovery. “In the second half of 1999, when demand began sputtering nationally, Rockside demand sputtered. Other cities eventually recovered, but our vacancy rates and rental rates haven’t budged — no recovery in 11 years. Since operating costs generally rise with inflation, flat rents mean declining operating profits. That’s been the real challenge of the Rockside market, and it won’t change quickly.”
Hello, Goodrich … Vacancy in the southern suburbs hit 23% as of Sept. 30, up from 20% a year ago, according to Grubb & Ellis Co. statistics. However, that number may show some improvement going forward because of deals struck this summer that will bring hundreds of employees to Rockside. After sitting empty more than two years, the lights will go on next month at 6225 Rockside Road, a building named after its street address, as 130 employees from Goodrich Corp.’s Landing Gear Division take up residence. The Goodrich unit’s engineering, procurement and administrative staff will move to Rockside to expand to 41,000 square feet from
OCTOBER 25-31, 2010
26,500 square feet in a flex/office building in Brooklyn Heights. “The move will provide an upgraded, more cost-effective business environment,” said Lisa Bottle, spokeswoman for Charlotte, N.C.-based Goodrich. Also winging their way toward Rockside are several hundred federal employees thanks to two different deals. A Department of Veterans Affairs unit, called the Veterans Health Administration, that provides management services for VA facilities has leased 15,000 square feet for a service center at Duke Realty Corp.’s Park Center III building at 6100 Oak Tree Boulevard. Insiders say another lease is under negotiation that will boost its presence to 30,000 square feet. Kenneth Demers, director of the service center, said the Park Center space next month would become home to 74 employees now located at the VA’s Brecksville campus and
in leased office space. He declined to comment on the additional lease because it is under negotiation. But, with the leases taken together, the VA unit stands to become one of the largest tenants to occupy space at the three-building Park Center complex in two years. Meanwhile, on the opposite side of Rockside at the Crown Centre building, the Bureau of Alcohol, Tobacco, Firearms and Explosives will expand to 18,900 square feet from 4,238 square feet as the federal agency consolidates its Middleburg Heights operation with one already on Rockside. The federal agents will occupy the new, larger offices late this year or in early 2010. Those leases are a plus for Rockside. However, for each time the market stands to gain two steps, losses push it back a step and a half.
… so long, Westlaw An example of that situation — and it isn’t the only one — is the plan of the Westlaw unit of Thomson Reuters to shut its operation at 6100 Oaktree Blvd. by year’s-end, emptying another 36,000 square feet of offices. The back-and-forth movement leaves some wondering if Rockside and the southern suburbs are losing their luster as a central office location in the middle of Cuyahoga County. Aside from the Goodrich transaction, most tenants active on Rockside this year are not commercial firms; rather, they are the federal government, proprietary schools and health care institutions. Mr. Viny wonders if the loss of BP, TRW Inc. and National City Corp. as an independent company following its purchase by PNC Corp. have reduced the flow to Rockside of professional services firms that serve large corporations through regional offices. Others see the empty space that companies gained by slashing their payrolls as the stealer of office demand. Bob Nosal, managing director of the Cleveland office of Grubb & Ellis Co., argues that an economic recovery and time will cure the empty-space problem in the southern suburbs. Recent developments have burnished its attraction, he said, as a plethora of restaurants and delis make it more attractive to tenants. And the widening of Rockside Road to five lanes in 2007 means traffic congestion is no longer a problem. The strength of Rockside’s location — it is an easy drive to Cleveland, Akron and Hopkins International Airport — may re-emerge as the economy recovers. Mr. Viny noted that Rockside also has exceptional ability to draw from large labor pools in both the eastern and western suburbs.
Cumberland fills a gap Cumberland Development Group of Cleveland is starting construction of a 138,000-square-foot expansion of its Independence Technology Park to accommodate an expansion by Cleveland Clinic, which already is a large tenant in the 168,000-square-foot structure. The $20 million expansion will consolidate more than 500 of the Clinic’s finance-oriented jobs from multiple locations in a deal that took Cumberland a year to finance, which it did thanks to the Cleveland-Cuyahoga County Port Authority. The technology park’s expansion highlights the contradiction that is Rockside Road and the office market in the southern suburbs today. There is 1 million square feet of office space sitting empty of the 5 million square feet in the southern suburbs, but none of those empty spaces exceeds 60,000 square feet, according to online realty data provider CoStar. ■
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INSIDE
17 DONE RIGHT, FOCUS GROUPS CAN OFFER CLEAR PICTURE.
15
EVENT PLANNING
PHOTOS PROVIDED
CMJ Development LLC built this 2,400-square-foot home in 27 days prior to the opening of 2010’s Great Big Home & Garden Expo at the I-X Center.
PUTTING ON A SHOW Home and garden exhibits present unique challenges for builders, organizers
By KATHY AMES CARR kcarr@crain.com
T CMJ plans to build this 3,000-square-foot contemporary house with a coy pond, waterfall, in-ground swimming pool and a playground for February 2011’s show.
his past February marked the first time a Seven Hills builder constructed a house within the confines of an exhibition center. And it wasn’t a small-scale version — or a small feat, for that matter. Home and garden show exhibitors, such as CMJ Development LLC, often have a narrow window of opportunity to transform the interiors of large empty buildings into showrooms full of model kitchens, elaborate flower gardens, custom-built homes and similar displays. CMJ’s 2,400-square-foot rustic edifice included waterfalls, a covered patio and other high-end amenities, all built within 27 days before the opening of 2010’s Great Big Home & Garden Expo at the International Exhibition Center. Now, the custom-home builder is getting ready to do it all over again, already having drawn up plans for a larger 3,000square-foot contemporary house with a coy pond, waterfall, in-ground swimming pool and a playground. See SHOW Page 19
Conference organizers embrace Twitter as #conversation tool By CHUCK SODER csoder@crain.com
They say posting during events enables attendees to connect more easily
G
school, said Dave Lutz, owner of Velvet Chainsaw Consulting Inc., an Aurora-based consulting firm focused on the meetings and events industries. In this case, though, there’s no reason for organizers to crumple those notes and throw them in the trash. Allowing attendees to post messages on Twitter during events helps them build connections with other people at the event and gives
o ahead. It’s OK to pass notes. Via Twitter, at least. Growing numbers of meeting planners are encouraging people to use the microblogging tool during conferences and other events as a way to spark ideas, conversations and connections. Getting attendees to log onto Twitter during events allows them to “pass notes” like kids do in
them a forum to discuss presentations and continue conversations that come up at lunch. Plus, it’s a good way to engage people who couldn’t make the annual meeting — but might want to attend next year, Mr. Lutz said. Those benefits have helped the use of Twitter — which allows users to blast short messages, or tweets, to followers who opt to receive them — become more
popular at events over the past 12 months or so, Mr. Lutz said. “It’s really starting to take off in the events we’re seeing,” he said.
An eventful 140 characters A posting on Velvet Chainsaw’s blog lists various ways meeting planners can maximize the use of Twitter at events. For instance, planners can encourage speakers to include some short sound bites
in their speeches, making them easy to distribute, since tweets cannot exceed 140 characters. The blog also suggests that meeting planners can schedule “tweet-ups” to give Twitter users a chance to meet in person. Additionally, planners can generate buzz by setting up displays that scroll random tweets during the event. Some meeting planners even go so far as to set up such a display on stage so speakers can get immediate feedback during presentations. See TWITTER Page 18
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CSU’s marketing partners at Wolstein Center share optimism By JOEL HAMMOND jmhammond@crain.com
C
leveland State University officials think the Wolstein Center has great potential. With 12,000 seats, it caters to midsize concerts and other shows too small for Quicken Loans Arena but too big for PlayhouseSquare. And with what CSU spokesman Joe Mosbrook calls an increased appetite for basketball in Cleveland — and a likely come-
down from a seven-year LeBron James high — CSU’s basketball teams are positioned to increase their profile in the city. It just so happens the arena’s new management and marketing partners share the rosy outlook. Global Spectrum, a Philadelphiabased subsidiary of sports and entertainment behemoth Comcast-Spectacor, in May won the contract to manage the facility. SMG, one of Global Spectrum’s competitors in the venue manage-
ment industry, had run Wolstein for 10 years; the Cleveland Cavaliers Operating Co. also bid for the contract. In August, the university also contracted with Little Falls, N.J.-based Nelligan Sports Marketing, which will handle corporate sponsorship campuswide, including at the Wolstein Center, and some marketing. Now, the companies’ charge is to spread the word about the Wolstein Center. “We’ve been out with the sales team, and quite a few promoters have said the perception is that The Q is the building downtown,” said Curtis Webb, the general manager of Global Spectrum’s operations at the Wolstein Center and a former operations supervisor at Gund Arena. “We’re out trying to rebrand the building, that we’re back for business.”
A little help? The question remains, though: Why do schools — and CSU is far from alone in employing big operating companies to run its building — need outside help? To industry veterans, it’s quite simple. “It’s a smart move on the part of these schools,” said Hamp Howell, the president of Cleveland-based Sports Facilities Marketing Group. “For the operators, this is their business. They do it 24/7, with hundreds of locations and know how to run a facility.” Global Spectrum manages 10 other college facilities; Nelligan has a vast portfolio of college properties, including the Kress Events Center at University of Wisconsin-Green
UPCOMING EVENTS AT THE ARENA ■ Nov. 1: Country music star and “American Idol” winner Carrie Underwood’s Play On tour, with opening acts Billy Currington and Sons of Sylvia ■ Nov. 3: Cleveland State women’s basketball home schedule starts with exhibition vs. Slippery Rock ■ Nov. 8: Cleveland State men’s
Bay, CSU’s fellow Horizon League member, and the Horizon League collectively. Mr. Webb said Global Spectrum in the near term is planning improvements to seating and the arena’s curtaining system, allowing for flexibility in capacity and acoustics. The Wolstein Center will play host to two big concerts in the coming weeks, including “American Idol” winner Carrie Underwood on Nov. 1 and pop star Justin Bieber on Nov. 11, and Mr. Webb said he hopes those shows help the arena’s standing. Another challenge for the Wolstein Center is fighting the rising popularity of outdoor shows, such as those at Nautica Pavilion and Time Warner Cable Amphitheater; more tours are choosing those venues in the summer, and winter basketball leaves schedulers at a disadvantage. “Tours have become incredibly organized, and come north in the summer for that very reason,” said Lee Esckilsen, the founder of ESVenues, a Providence, R.I.,venue development and management consulting firm, who consulted with the city of Youngstown on its downtown Covelli Centre. “But Global Spectrum should be successful (in Cleveland). Without (management companies), these schools are fending for themselves in the concert business. The companies have strength in numbers and have influence.”
On the court CSU basketball will continue to be emphasized, too, and a repeat of the 2008-09 season wouldn’t
basketball home schedule starts with exhibition vs. Baldwin-Wallace ■ Nov. 11: Pop star Justin Bieber’s My World tour ■ Nov. 20: Burning River Roller Girls Black and Blue bout ■ Dec. 29: WWE Smackdown ■ Dec. 31: Comedian Jeff Dunham’s Identity Crisis tour
hurt: The Vikings finished 26-11, beat No. 17 Butler in the Horizon League title game and, as a No. 13 seed in the NCAA Tournament, upset No. 4 Wake Forest in the first round in Miami. (They also went viral when a full-court shot by senior Cedric Jackson beat thenNo. 11 Syracuse.) Engaging CSU coach Gary Waters has been making the rounds with local media ahead of the team’s exhibition opener on Nov. 8. A free event, dubbed “Viking Madness,” was held Oct. 16 and featured giveaways and autograph sessions with players. “We have a Division I basketball team that people don’t hear much about, being in a major metropolitan city,” CSU’s Mr. Mosbrook said. “The appetite is there, and for people who don’t want to spend $200 or $300, they can go to a Division I CSU game.” That’s where Global Spectrum’s experience comes in handy: The company manages college venues in professional cities such as Miami, St. Louis, Philadelphia and Orlando. Nelligan markets college buildings in Milwaukee (Marquette) and Philadelphia (Penn). Additionally, like their pro counterparts often do, CSU will leverage its Feb. 5 game against Butler — the team that was a hair away from beating Duke for the national championship in April — in ticket packages. For instance, fans who buy a six-game plan get a ticket to the Butler game. “Our challenge is to get groups in here who haven’t been to a game before and get them coming back,” Mr. Webb said. ■
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Focus groups conducted correctly can offer clarity Independent researchers help guide strategies By TIMOTHY MAGAW tmagaw@crain.com
O
fficials at the Northeastern Ohio Universities Colleges of Medicine and Pharmacy, colloquially known as NEOUCOM, had thought for years that the medical school in Rootstown had outgrown its name. Adding more letters — namely an “A� and a “P� — to the already murky acronym only would make it more of a mouthful. So this summer, a simpler take on the school’s name was decided upon: Northeast Ohio Medical University, a change that still must be approved by the state. School officials, however, didn’t come up with the short-and-sweet version in a vacuum. Focus groups were used as part of the institution’s overall rebranding effort, led by public relations firm FleishmanHillard Cleveland. Marketing experts say focus groups like those used by NEOUCOM can be useful tools in making business decisions, but only if the meetings are conducted correctly and the group is organized in a proper manner. The gatherings can be especially helpful if you want to get below the
surface and find out what your consumers are really thinking, said Danielle Coombs, an assistant professor of advertising at Kent State University. “They’re really useful and wonderful when you want to get depth and dig in to understand what’s going on,� said Dr. Coombs, an experienced market researcher who’s conducted hundreds of focus groups. Still, they don’t come cheap. And industry experts say if you’re willing to pay up for a professional research firm, a focus group can cost anywhere from $2,000 to $5,000 a pop, plus the fees paid to participants.
When they work Rachel Talton, president of Synergy Marketing Strategy and Research Inc., said focus groups aren’t for a particular sector or business type but rather for any groups looking for insight into their products, services or brands. “Any organization with stakeholders that are engaged with the organization’s product, people, brand or operations can benefit from qualitative research with focus groups being one of the types of research,� said Dr. Talton,
IN BRIEF ■CSU OFFERS WEB MEETING GUIDANCE: Cleveland State University this fall for the first time is offering an online series of courses focused on virtual meetings, which can include everything from webinars and video casts to other audio and video formats. Three online classes — Virtual Meeting Technology; Keys to Effective Design of Virtual Meetings; and Managing Virtual Meetings — are being presented in cooperation with the Learning Resources Network, a national continuing education organization. Students are required to enroll in all three courses, which are offered
consecutively. Additionally, students could have the option to take a certified virtual meeting planner exam. Since the curriculum is part of the Learning Resources Network, participating students are from throughout the country. Cindy Parish, CSU director of business and management programs for the Division of Continuing Education, said while no students signed up through Cleveland State for the courses this fall, the series will be offered again from Feb. 7 to April 29. More information can be found at www.csuohio.edu/ce or by calling 216-687-2144.
END-OF-YEAR NUMBERS WORTHY OF A HIGHLIGHT REEL? CELEBRATE HERE.
whose firm is based in Fairlawn. The Cleveland Clinic uses focus groups in its market research to provide data to support strategic business decisions. The Clinic, for instance, conducted focus groups with cancer patients while designing its Taussig Cancer Center, which helped identify what colors would be soothing and how to create a healing environment. On a different note, focus groups helped entrepreneur Wally Berry hone his idea for the EnviroFlush — a battery-operated toilet fixture that brings a stronger flush and conserves water. Mr. Berry said he’s been impressed with how helpful focus groups can be during the concept and design stages for new products “I’m astounded with how helpful they are,� Mr. Berry said. “People continually amaze me with some of the ideas or improvements they can spot for a product that you can’t see because you’re so close to it.� Dr. Coombs noted, however, that there’s a misconception that focus group participants are there
to fix problems. She said she tells clients that it’s not the participants’ job to come up with new taglines, marketing plans or logos but rather offer insight to spark new ideas. David Rosenberg, president of Rosenberg Advertising, the firm that conducted the focus groups for Mr. Berry’s product, agreed that there are rarely any “ahaâ€? moments. “You just have to know how to use the information,â€? Mr. Rosenberg said. “It’s not that cut and dried. ‌ The information is very good, but we still have to analyze it.â€?
Bringing an independent voice A focus group is much more than corralling some people in a room and asking questions, said Dr. Coombs. Selecting the right participants, narrowing the questions and managing the discussions are all labor-intensive tasks. “It’s really hard. It’s a really difficult job. There’s this idea that you just sit there and talk to people,� she said.
Additionally, Dr. Coombs said it’s important that the researcher be independent or the data could lack credibility. An in-house focus group moderator, she said, might find it difficult to separate themselves. “As moderator, you need to represent a blank face. You need to be neutral,â€? she said. Dr. Talton noted that research is a science and if the person doing the research isn’t skilled at gathering and analyzing the information, they could come to the wrong conclusions. The facilities where the focus groups are held also can be important, she noted. Dr. Talton’s firm, Synergy, for example, has a 3,800-square-foot facility retrofitted with technology to help run a focus group. “You wouldn’t want a welder giving heart surgery because they know how to put together one tube with another,â€? Dr. Talton said. “People can be great communicators without being great researchers. Having a professional help is critical, especially if you’re thinking about making new business decisions.â€? â–
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Twitter: Tool helps networking continued from PAGE 15
That setup isn’t for everyone, since it can be distracting, Mr. Lutz said. Regardless, meeting planners would be wise to encourage Twitter use somehow, he said. “The learning goes way up,” Mr. Lutz said. “People tend to remember things and hopefully apply them to their job.” People attend events to learn and network, and Twitter can help them do both, even after the event ends, said Ken Siem, strategic account manager for meeting and event services firm Experient Inc., which has an office in Twinsburg. Though the number of trade associations and other groups encouraging people to log onto Twitter at events is increasing, he noted that most groups — including his 10 main clients — don’t yet do so. “There’s still a ways to go before even 25% of associations use it,” he said.
Not quite sold The International Association for Energy Economics in Woodmere is among them. The organization uses social media such as Facebook and LinkedIn to promote events ahead of
time, disseminate information and help members network, but executive director David Williams said the group isn’t sold on the use of Twitter at events. “We want the folks at our meetings to be attentive and not on their devices during our presentations,” Mr. Williams said. Some groups also are concerned that Twitter users might spread negative messages about their events, said Beth Hecquet, vice president of communications for the Ohio Chapter of Meeting Professionals International. Meeting planners can address the issue by making sure someone is reading event-related tweets and responding to questions and concerns. Seeing complaints even can help meeting planners fix problems if, say, the room is too hot or cold. Ms. Hecquet plans to do more to encourage Twitter use during the meetings she organizes for the Cincinnati-based National Association of Sports Commissions. “The moderator will say, ‘Please keep your smart phones out,’” said Ms. Hecquet, director of meetings and events for the association. ■
S H O R T TA K E S ■ NOW YOU SEE IT …: EventWorks, a full-service event planning and audio/ video production company, is getting into the business of optical illusions — or 3-D, holographic images, to be exact. The Beachwood firm has partnered with RealFiction of Copenhagen, Denmark, to offer a mixed-reality kiosk that combines holographic and real-life images. “It’s in an environment not connected to a screen or a surface,” said Joel Solloway of EventWorks. The kiosks — called Dreamocs — come in two sizes and allow for physical products to be displayed amid freefloating holographic images in a contained space. The technology will be on display during a fundraiser Nov. 6 at Spaces gallery in Cleveland. “It’s really an adjunct to our business,” said Mr. Solloway, whose firm also is involved in creating content for the stations. He said onlookers generally tend to be amazed by the technology: “They’re blown away. … They’re looking at something that looks as real as you and I, and it’s just floating around in there.” ■ FEATURED PRESENTATION: Colortone Staging & Rentals of
PHOTO PROVIDED
A Dreamoc mixed-reality kiosk Cleveland for the second year will provide specialized digital technology for use during the Cleveland International Film Festival, which will run from March 24 to April 3, 2011. Last year, the audio visual and staging company purchased four projectors that use digital light processing technology and created a fiber optic control room for the event, said Bob Leon, president of Colortone. In all, Mr. Leon said Colortone invested in excess of $200,000 for equipment used at the film festival. Colortone also has access to borrow other projectors through a partnership arrangement. Colortone has a three-year agreement with the festival, Mr. Leon said. ■ OFF-ROADING: Merely six months ago, Cleveland’s first and only food truck pounded the pavement selling its gourmet street cuisine throughout Northeast Ohio to hungry passersby. The concept caught on so fast, Dim and Den Sum began receiving catering requests, and the business has delivered — and then some. “Our first catering event was a pig roast for a christening around May 3,” said Christopher Hodgson, chef and owner. Since then, a handful of full-time employees and a couple of part-timers have catered between 20 and 30 events — from weddings to bat mitzvahs — while balancing a food truck that serves lunch nearly every day, and dinner and late-night dining throughout various Cleveland-area and Akron neighborhoods. Dim and Den Sum’s catering business is building, Mr. Hodgson said. The operation currently is marketing through its Twitter and Facebook accounts catered holiday office parties, and weddings and other events are booking up next year as well.
The events have ranged from about $15 per plate to $75, and while Dim and Den Sum’s street fare approach is funky, fresh and unexpected, the business is more formal and restrained with weddings. “We do very creative fine dining, more like what you’d see in Lola or Fire (Food & Drink)” Mr. Hodgson said. “We don’t tell the guests what we can serve them; they tell us what they want.” Running a burgeoning catering business with a food truck operation logistically has been challenging, but Dim and Den Sum’s first restaurant — planned to open May 1 in Ohio City — should provide a more solid base with which they can store and prepare food for the various ventures. “It’s so crazy and awesome,” Mr. Hodgson said. “I don’t sleep. Who needs sleep?” ■ WELLNESS MOVE: The InterContinental Suites Hotel is undergoing a major renovation that will involve all guest rooms, common areas, meeting rooms and restaurants within the 162suite Euclid Avenue hotel. The project, which started this month, is aimed at creating a “center of wellness and tranquility,” and work is expected to be complete by April 2011. Following the remodel, the InterContinental Suites will have two separate meeting rooms connected by etched glass folding doors and each room will have its own entrance. One meeting room will be 673 square feet with space for 35 people seated in a classroom style, or 65 in a standing reception. The other room will be 465 square feet and accessible from the dining room, and it will have direct access to a seasonal outdoor patio.This room has space for 20 people sitting or for 40 standing. Both meeting rooms will have advanced technology such as flatscreen plasma monitors and fully integrated audio-visual capabilities controlled by touch screens built into the lecterns. In addition, there will be special lighting treatments to reduce eye strain. The new wellness-themed InterContinental also will feature an expanded fitness center and wellness store as well as a refurbished lobby and restaurant.
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EVENT PLANNING
Restaurant Week leaders pump up profile
C
leveland Restaurant Week, which this year runs Nov. 1-14, is assuming a more visible marketing campaign that includes a new colorful logo and its own home page. Event organizer Cleveland Independents — which is composed of 90 individually owned and operated local restaurants — said the rebranding strategy underscores the event’s need for a unique identity as consumer interest and sponsor participation rise. “After researching Restaurant Week in a number of major metropolitan areas, we discovered that creating an independent brand for the promotion was common practice,” said Douglas Katz, president of Cleveland Independents and chef/owner of Shaker Heights-
based Fire, Food & Drink. “We believe that the new brand for Cleveland Restaurant Week will bring even more attention to this event than before.” Each restaurant member of Cleveland Independents offers during Cleveland Restaurant Week a special menu, most of which are three-course, $30 prix fixe menus. Cleveland Independents today, Oct. 25, also will launch a new home page for the sixth annual event, to which users will be linked through www.clevelandindependents .com. That home page will enable guests to make reservations
through Open Table with restaurants that use that function; the home page also will feature different menus. Meanwhile, Myra Orenstein, executive director of Cleveland Independents, said this year’s event has 20 sponsors — some of which are national organizations — nearly double last year’s number. Some sponsors pay for their exposure and in return are advertised through Cleveland Restaurant Week’s promotional materials. Others have similar “value-add” arrangements, Ms. Orenstein said. “It’s really about all the local businesses supporting each other.” — Kathy Ames Carr
D D D D D
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Show: Setup leaves little time for relaxation continued from PAGE 15
“This year, we had a couple of months to figure out the logistics, which means more time to plan,” said Clark Fischer, a homebuilder and partner at CMJ. “I expect we’ll start building (at the I-X Center) around the beginning of December.” Despite what can be crazy crunch times for home and garden show exhibitors, there’s also plenty of planning and preparation that must start well before the annual winter events in order to pull off the creation of vibrant landscapes and feel of luxurious living. “It’s controlled chaos,” said Sharon Gillberg, show manager for Greater Akron Home Builders Promotions Inc., which produces the Akron Home & Flower Show, slated for Feb. 25-27 at the John S. Knight Center. “The exhibitors have four days to set up, and nine to 10 hours to tear everything down.”
In full bloom Plant and flower growth already is being accelerated in preparation for the Cleveland and Akron shows and another similar-themed event at the Great Lakes Exposition Center in Euclid. Indeed, some exhibitors that showcase flower gardens already have placed orders with Avon-based Willoway Nurseries, which forces the growth of annuals and perennials so they are at their early spring blooming seasons during the winter. “We have to trick the flowers,” said Steve Novak, salesman and forcing coordinator. Mr. Novak said certain plants and flowers, such as hostas, ferns, tulips and hyacinths, have to be chilled in a cooler for up to 12 weeks prior to the growing process. The cooling “tricks” the plants into dormancy by emulating winter conditions before they are forcibly grown in a greenhouse around the holiday season; the first batch of plants was placed in Willoway’s cooling units in early October. In about mid-January, two weeks prior to the Great Lakes Expo Center’s Home & Garden Show, landscapers will work 12 hours each day marking the floors, installing the retaining wall and completing other hardscape tasks. About a week before opening
PHOTO PROVIDED
Exhibitors at the Akron Home & Flower Show have little time to set up and even less to tear down after the event, scheduled for Feb. 25-27. day of the event, which runs from Jan. 21 to 30, the garden and floral arrangements show up, said Rob Attewell, show manager of Expositions Inc., the event’s producer. Once the plants are delivered, handlers take extra precautions to make sure the plants that are shipped in heated tractor-trailers are not exposed to the bitter temperatures outside. “We load them through a sealed loading dock at our facility,” Mr. Novak said. “Our average delivery contains 16 full semi-loads.” Then landscapers work feverishly to install the plants into faux yards at about the time other exhibitors are working in fast forward trying to erect their displays, most of which occurs right up until hours before doors open. Despite the accelerated pace of activity and adrenaline rushes that come along with working against a deadline, event producers say the home and garden show setups are well planned and executed. “I would say the biggest challenge is the weather,” Mr. Attewell said. “A lot of our landscapers also have a snow-plowing business, so they have to split their crews and work longer hours.”
Down to the wire While some event participants barely need hours to set up, as their displays already come assembled,
others will work around the clock in the days leading up to their shows, pulling together what often has been months of preparation. “One display is an already built fully furnished sunroom, where the floor is actually a trailer,” Mr. Attewell said. “The wheels slide in and out.” The Akron Home & Flower Show’s exhibitors have a narrow timeline of about six days to assemble their displays, and the pace of work is labor intensive, with some individuals working from 8 a.m. to 11 p.m. Meanwhile, the I-X Center’s Great Big Home & Garden Expo’s landscapers will set up 12 to 14 hours a day, but they have two weeks, said Sue Huff, show manager for Solon-based Marketplace Events, producer for that event. And while builders like CMJ and Avon-based Creative Construction Solutions — which is building a 1,000-square-foot “man cave,” complete with a home theater, bar and game room — have the luxury of being able to begin building at the I-X Center in early December, they don’t necessarily have the floor to themselves. Mr. Clark of CMJ Development LLC said his crew will have to work around other shows that take place during that time, such as the MidAmerican Boat & Fishing Expo. “We have hammer times, and we have quiet times,” he said. “We have curtains that surround our work area, and we try to schedule the noisy construction around other shows’ setup and teardowns.” Mr. Fischer said last year’s home cost between $30,000 and $35,000 to build, and many exhibitors donate construction materials and other products to the house in return for more exposure. He’s not sure what this year’s costs will be — lumber represents about 40% of the project’s expense — and Mr. Fischer said a supplier is interested in donating lumber as a way to promote that business. For his part, once Mr. Fischer tears down his home, the building material is donated. “Last year, we donated the lumber to vocational students at Max Hayes, and other materials to the Habitat for Humanity,” he said. ■
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216-664-6067 specialevents@playhousesquare.org
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Contact: Phone: Fax: E-mail:
Genny Donley (216) 771-5172 (216) 694-4264 gdonley@crain.com
WWW.CRAINSCLEVELAND.COM
OCTOBER 25-31, 2010
REAL ESTATE
Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card
AUCTIONS PUBLIC AUCTION Complete Liquidation of Scott Port-A-Fold Expansion Foam Molding/Screen Printing & Decorating Equipment Intellectual Property•Molds•Tooling•Inventory Wednesday, Nov. 10, 2010 @ 10:00AM
REAL ESTATE AUCTION
PUBLIC AUCTION
Includes Restaurant Furniture, Fixtures & Equipment
Thurs.,Nov.11,2010, 10:00 AM 8400 E. Market Street, Warren Ohio 44484 Selling Prime Retail Building
Formerly TGI Friday’s
• 5,600 SF free-standing building • Built in 1985 • 30 parking spaces • Drive-through window • 52’ frontage on Market St. • Near intersection of East Market St. and St. Rte. 46
Location: 100 Taylor Parkway, Archbold, OH 43502 OFFERING #1 Three product lines & equipment to produce foam balls & footballs along with all manufacturing rights, customer list, product information, names & phone numbers. Product Line #1 • Large Football: 30#/Minute Stepan Mix Head, 2 Resin, ISO Metering Pump, Conveyor System, Spray Booth, Infrared Heat & Hot Water Heat, ALL Aluminum Molds, Hydra-Dine Motors Product Line #2 • Round Ball: 40#/Minute Stepan Mix Head, 2 Resin, ISO Metering Pump, Conveyor System, Spray Booth, Infrared Heat & Hot Water Heat, ALL Aluminum Molds, HydraDine Mixer Motors Product Line #3 • Mini Football: 50#/Minute Custom Built Foam Machine w/Stepan Head, 3 Resin, ISO Metering Pump, 50#/Minute Stepan Mix Head, Complete Conveyor System w/Press, 3 Spray Booths, Mold Release Spray, 2 Infrared Heat Dryers, Accumulator Tables, ALL Molds, Polypropylene, Including 2-Cavity Injection Mold; OFFERING #2 Product Line #4: Small rubber buildings patterns & mold for Toy & Hobby Industry; also offering Molding, Screen Printing & Lab Equipment; Material Handling; Shop/Maintenance Equipment & Supplies; Production & Completed Inventory & More!!! *Visit our Website for Terms, Photos & More Details*
Restaurant Use Only Wednesday, November 10th, 1 pm – on site 2040 Midway Boulevard, Elyria, OH (Midway Mall) 6,770 sq. ft. Commercial Building/FF&E 10% Buyers Premium See Website for Details
Contact Auctioneer for property tours and terms & conditions. Subject to prior sale.
Midwest Properties Auctioneers, LLC - Robert Nieto – Auctioneer / CB Richard Ellis, Inc., Broker
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COMMERCIAL SPACE FOR LEASE Rocky River Beachcliff Area. From $14.75 Single office $500
Call 440-333-0000 ext. 777
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Brooklyn, Ohio Toll Free: 866-870-5500 Auctioneers: Wayne M. Wilson, CAI, Brent J. Wilson, CAI www.WilsonAuctionLtd.com
E-MAIL US YOUR AD... GDONLEY@CRAIN.COM
7000 sq. ft., 12x14 Overhead Door 110-220 3 Phase Power Excellent for Garage/Warehouse/ Light Manufacturing $2000/month Contact Frank at Trans Properties
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We are seeking candidates for an Associate position and a Manager position to support our Partners in delivering our full range of advisory services. The Associate position requires one to five years of experience while the Manager position requires at least five to ten. Candidates must have an undergraduate business degree and related experience in an accounting firm, family office, or wealth management firm. Preferred candidates will already have or be working toward the CPA and/or CFP license. Both positions require extensive income tax, financial planning, and investment advisory analytical skills, along with the ability to develop trusted relationships with clients. Resumes are being accepted by email to mch@fairwaywealth.com.
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Ads: Shift to online spending hasn’t yet hurt television stations continued from PAGE 3
is likely to exceed $4.2 billion this year, a new record for a midterm election year. Borrell Associates, an advertising research firm based in Williamsburg, Va., reports that political spending on digital media should reach $44.5 million this year, roughly 1% of total media spending and double the amount spent on the web during 2008. That percentage appears to be higher at least for some Ohio candidates.
Ohio’s early adopters Peter Pasi, executive vice president of emotive llc of Arlington, Va., a web developer and content management firm, said some campaigns his firm works with direct more than 1% of their media budgets online. The firm works principally for Republicans, including John Kasich, who is running for Ohio governor, and Rob Portman, who is running for the Senate. “Rob Portman and John Kasich are two of the most sophisticated candidates out there,” Mr. Pasi said. Mr. Kasich’s campaign finance filings with the Ohio Secretary of State’s office show that his campaign paid emotive $122,561 from the beginning of 2009 to June 1, 2010, for web site development and web consulting services. While Mr. Pasi may paint a partisan picture, a Google Inc. political advertising strategist concurred with part of Mr. Pasi’s statement. “Portman was an early adopter,” said Google’s Andrew Roos. Neither Mr. Roos nor Google spokeswoman Becca Ginsburg would divulge information about the company’s political advertising revenue. But Mr. Roos said the number of candidates using Google advertising has grown 800% since President Barack Obama’s groundbreaking use of online media to raise money. Advertising that sends web surfers to fundraising pages still is a key goal of online political advertising. Mr. Pasi said his candidates are spending as much as one-third of their online media budgets to solicit contributions. Mr. Roos said political advertisers also are buying search engine ads to promote their candidates and attack opponents and are placing on YouTube extended ad spots, campaign videos and other information.
Stealth attacks Someone who starts a Google search for Mr. Kasich or his Democratic opponent Gov. Ted Strickland in the last days before Election Day is likely to find an ad for KasichFacts .com on the first search page returned. That site, managed by the Ohio Democratic Party, assails Mr. Kasich’s record in Congress and at the Lehman Bros. investment bank. Another nearby but harder to find ad — which would cost slightly less — could send the searcher to Every OtherMonday.net, a site promoting Mr. Kasich’s new memoir. Seth Bringman, communications director for the Ohio Democratic Party, described the party’s web presence as effective. In addition to the anti-Kasich site, the Democrats are operating a handful of sites supporting party candidates as well as several, such as robertportman .com, attacking Republicans. Mr. Bringman would not disclose financial information, but said online spending was a small part of the party’s overall campaign advertising
budget. He did say the party has an in-house new media team that creates advertising for Google, Facebook and YouTube to project the party’s messages touting its candidates or ripping the opposition, as KasichFacts.com does. “It’s a very good use of resources to get your message out to an audience that tends to be informed and active on the Internet ... and get them to take action online,” Mr. Bringman said.
The tried and true While online ad spending in political campaigns is rising, local television stations aren’t feeling the pinch yet, though they decline to discuss details.
Leslie Pastel, general sales manager at WKYC-TV, Channel 3, was circumspect, saying in a brief telephone interview, “It’s brisk, and I’m going to leave it at that.” While station ad execs were reluctant to say whether they had any ad inventory left before Nov. 2, one ad sales rep at a local station was overheard on her phone to complain about the lack of open spots. “Everybody’s mean to me because we can’t run their spots,” she said. The political advertising invoices television stations keep available for public inspection in the past typically have filled two or three three-ring binders. This year, the number of ring binders has increased and their contents are bulging; at
one station, they fill two file boxes because of the number of independent committees buying ad time. For example, a bulging file folder at WOIO-TV, Channel 19, indicates the Republican Governors Association will have spent $73,251 on 225 ad spots on WOIO in support of Mr. Kasich by Election Day. Likewise, the Service Employees International Union will have spent $97,025 on 135 spots on the same station in support of the re-election of U.S. Rep. John Boccieri, a Democrat from Alliance. Other committees spending on local television stations include the Fund for Children and Public Education of the National Education Association, which is opposing the
election of Tom Ganley in the 13th Congressional District; Building a Stronger Ohio, a group sponsored by the Democratic Governors Association that knocks John Kasich; and the Committee for Truth in Politics, a nonprofit organization exempt from campaign disclosures. Little is known about the latter committee. However, factcheck.org, a web affiliate of the Annenberg Public Policy Center, reports the committee had raised $7 million in anonymous donations through September 2010 and had used some of that money to launch a flight of television ads this summer attacking Democratic Rep. Zack Space of Dover, criticizing his vote for carbon emissions legislation. ■
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OCTOBER 25-31, 2010
THEINSIDER
THEWEEK OCTOBER 18 - 24 The big story: The latest Beige Book report by the Federal Reserve Board indicates economic activity in the region covered by the Federal Reserve Bank of Cleveland held steady during the past six weeks. According to the latest report, manufacturers reported that new orders and production rose modestly. But, the report added, “An uptick in residential construction, retail sales and new car buying that began in midsummer has tapered off.” Nonresidential building activity showed little change. The report said demand for business loans “showed some signs of a pickup,” but noted that consumer borrowing remained weak.
Excel-ent sale: Polymer materials producer Hexpol AB of Sweden agreed to buy Solon-based Excel Polymers for $212.5 million. Hexpol said the transaction is expected to be accretive to earnings from its closing “and is expected to generate significant synergies, mainly on the cost side.” Excel Polymers is a supplier of compounded polymer materials, performance additives and valueadded services to rubber parts manufacturers. Excel Polymers operates eight manufacturing plants in the United States, China, Mexico and United Kingdom. See related story, Page One
Change at the top:
Goldberg
Susan Goldberg is resigning as editor of The Plain Dealer and will join Bloomberg News as executive editor to oversee its expansion of state and local government reporting in California. Debra Adams Simmons will take over as Plain Dealer editor. Ms. Simmons joined the paper in September 2007 after she was editor of The Akron Beacon Journal for four years. Ms. Goldberg joined The Plain Dealer in May 2007. Her resignation is effective Nov. 5.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Kent State, Fingerhut remain at impasse
Danny Vegh’s racks up another award
■ The clock is ticking on Kent State University’s self-imposed deadline for the Ohio Board of Regents’ approval of a $210 million bond sale to fund campus improvements, and the two parties have yet to come to an agreement. Kent State president Lester Lefton’s Nov. 8 deadline for Chancellor Eric Fingerhut’s approval is only two weeks away. Without the chancellor’s approval, Dr. Lefton said the improvements wouldn’t happen. Kent State maintains it needs swift approval to sell the bonds at a favorable rate through a federal stimulus initiative that expires at year end. Gregg Floyd, Kent State’s vice president for finance and administration, wouldn’t predict what would happen and only would say the two parties have continued discussions, which he noted was a good thing “compared to being angry and not talking.” “As long as we can keep talking, I guess there’s some hope,” Mr. Floyd said. To pay for the bond sale, Kent State has said it would implement a series of student fees. Mr. Fingerhut doesn’t like the idea of additional student fees and also thinks the university’s regional campus tuition should be lower. “We’re having conversations,” Mr. Fingerhut said. “I think everybody’s looking to find different ways to look at it.” — Timothy Magaw
■ It may not feel the same as running the table in a high-stakes game of pool, but a recent honor received by the Danny Vegh’s Billiards and Home store at Crocker Park in Westlake is satisfying nonetheless. The national trade magazine Billiards Retailer in its October issue recognizes the store that opened last March with its Best Designed Store award. It’s the second time in the last five years that Danny Vegh’s has been singled out by the magazine, as the retailer’s Mayfield Heights store won a design award in 2005. Billiards Retailer was impressed by such touches as enormous cues that double as wall sconces and adorn each side of the entryway to the 4,200-square-foot store. Kathy Vegh, CEO of Danny Vegh’s and daughter of the company’s namesake founder, hints that the concept for the store may be carried forward in the future by what is now a four-store chain, though she declined to say more for now. — Mark Dodosh
WHAT’S NEW
BEST OF THE BLOGS
Read all about it: OverDrive Inc., a distributor of electronic books and other digital content, secured what it called a “major investment” from a New York private equity firm. OverDrive, of Valley View, will use the money from Insight Venture Partners to speed efforts to increase sales in both the United States and abroad. The company declined to provide the amount of the investment.
Extinguishing the grill: Star Cleveland chef Michael Symon on Oct. 30 is closing his Bar Symon restaurant in Avon Lake. “We just couldn’t make this concept work in this location in this shopping center,” said Doug Petkovic, Mr. Symon’s business partner. About 40 part-time and full-time employees worked at the restaurant at 32858 Walker Road. Follow the money: The Cleveland Museum of Art tapped August Napoli Jr., president of the Akron-based Summa Foundation, to lead fundraising efforts at the museum, which is in the midst of a $350 million renovation and expansion program. He will start Dec. 1. Mr. Napoli will oversee the museum’s fundraising, grant writing, planned giving, corporate sponsorship and government relations departments.
■ Bryant & Stratton — a for-profit college with three Northeast Ohio campuses — is pioneering a scholarship program that allows each recipient to pass along another full-ride scholarship to a person of his or her
Excerpts from blog entries on CrainsCleveland.com.
Despite little time in office, Goyal’s star rising, Time says
Adams Simmons
Taking orders: Flight Options, a provider of private jet air services, announced a $150 million order for 40 400XT aircraft from Nextant Aerospace LLC, an aircraft remanufacturer that is next door to Flight Options’ headquarters at Cuyahoga County Airport. The Nextant 400XT is a twin-engine, eight-seat aircraft that is built on the airframe of the Beechcraft 400A, a popular light jet that first hit the market in the early 1980s.
A free ride to college for you and a friend
COMPANY: Beecology, Cleveland PRODUCTS: Eco-friendly bath and body products A Northeast Ohio family is trying to create some buzz with their new business venture. “We are beekeepers who produce reasonably priced eco-friendly, natural bath and body products, including sulfate-free, preservative-free shampoo and conditioner, as well as (moisturizing soaps) and a fabulous honey hand and body cream that is paraben-free,” says Amy Rzepka, who runs the business with her husband, David, and their three kids, Molly, 18, Rachel, 17 and Nathan, 14. Beecology is marketed through the Internet, regional farmer’s markets and boutique retail outlets in Ohio, Colorado, Michigan and New York. Beecology “offers products that we handcraft from natural, renewable ingredients for the body — inside and out,” according to Ms. Rzepka. “Product assortment currently includes essential oil-nourishing soaps, preservativefree body wash, sulfate-free hair care products, antioxidants creams, raw natural honey and Buzz Balm lip balm.” For information, visit www.Beecology.com. Send information about new products to managing editor Scott Suttell at ssuttell@crain.com.
■ A 29-year-old state representative from Mansfield earned a spot on Time magazine’s 40 under 40 list of the rising stars of American politics. Jay Goyal, a Democrat representing the 73rd District, left daily duties at his parents’ Mansfield manufacturing firm to run for a statehouse seat. He won the seat two years later, and now, as Democratic majority whip, “has been touted as a future governor,” according to the magazine. Rep. Goyal told Time that his political hero is U.S. Sen. Sherrod Brown, who used to hold the seat Rep. Goyal now occupies. “He was 23 years old when he got elected,” Rep. Goyal said. “I used to say, ‘I might be too old to run for state senate, because I was 25.’”
The doctor’s house call isn’t dead after all ■ Health care is coming home. Literally. The Health Blog at The Wall Street Journal took note of a piece published online in The New England Journal of Medicine by Dr. Steven Landers of the Cleveland Clinic. In the piece, Dr. Landers, a family-medicine physician and geriatrician, describes “what he sees as a trend toward more home-based health care (that) goes way beyond a lone doctor hitting the road with his or her black bag,” according to the Health Blog. Instead, care at home may consist of “physicians, nurses or therapists coming through the front door, or new care models being delivered through monitoring
choosing. Based on the idea of “paying it forward,” the scholarship program has elements of a viral marketing campaign and is aimed at touching as many people as possible to get the word out about the college’s online associate’s degree programs, said Scott Traylor, Byrant and Stratton’s associate campus director for online education. The bulk of the college’s students at present are in the classroom, not online, he said. After an initial scholarship application phase through the program’s web site, video crews will be sent to film 10 finalists who will make their pitches as to why they deserve a scholarship. The finalists’ videos then will be posted online for people to vote on; five winners will be selected. The hope, Mr. Traylor said, is that the finalists push the videos on their social networks such as Facebook and Twitter and spread the word about Bryant & Stratton. “With social media today, it’s a huge piece of everybody’s digital life,” he said. “We recognized the power of the viral nature of that, which we tried to build into it throughout.” The five winners each will be able to pass along another full-ride scholarship — valued at about $30,000 — to a person of their choosing. Mr. Traylor said Bryant & Stratton’s marketing and advertising efforts previously had been somewhat dry, but this idea was “something different that is mutually beneficial for everybody.” “It was something big we could do for folks looking to go back to school,” he said. “The most successful students are the ones who are going back with someone.” — Timothy Magaw
devices, computers” or the telephone, Dr. Landers told the Health Blog. He envisions “physicians helping to lead that homebased team,” even if they’re primarily still working from a hospital or clinic. Dr. Landers wrote that five forces are driving the trend: the physical limitations of an aging population, a growing focus on chronic conditions, advances in “miniaturization and portability” of technologies that facilitate care, a push toward health care delivery in more convenient places and cost-cutting.
Cleveland well-grounded in smart revivals of vacant land ■ The Detroit Free Press sees Cleveland as setting a high bar for re-use of vacant land. “Cleveland is experimenting with a host of innovative pilot projects to reclaim vacant lots, from a vineyard to a small orchard, as well as dirt-cheap temporary parks and pop-up retail sites erected for a day’s special events,” the paper said. Terry Schwarz, director of Kent State University’s Cleveland Urban Design Collaborative, told the Free Press that smaller ideas often work better than sweeping, citywide plans: “Instead of figuring out what to do with (all) the vacant land, we need to figure out for each neighborhood, ‘What are your most pressing problems, and in what way can vacant land be part of an answer?’” The paper approvingly cited RTA’s HealthLine and Cleveland’s new zoning protections for urban agriculture programs, as well as the city’s pilot program to renovate 56 vacant lots scattered throughout the city. Joseph Schilling, a professor of urban studies at Virginia Tech, told the paper, “When people ask me what’s going on with vacant properties, I tell them, ‘All eyes should be on Cleveland.’”
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