Crain's Cleveland Business by Crain's Cleveland Business

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$2.00/OCTOBER 31 - NOVEMBER 6, 2011

County’s $100M fund would aid small firms

THERE’S VALUE IN VINYL Manufacturer finds his groove in resurgent music medium By TIMOTHY MAGAW tmagaw@crain.com

Plan also would help leverage its business attraction efforts

ince Slusarz collected vinyl records for much of his life. But when he saw his oldest daughter, Emily, take an interest in what some had perceived as a dying format, the entrepreneur embarked on a venture to combine two of Cleveland’s greatest assets: music and manufacturing. Mr. Slusarz’s record manufacturing plant, Gotta Groove Records, is just 2 years old, but this year the company is poised to turn its first profit since it started running its presses in 2009. The survival of vinyl records first had been threatened by the introduction of compact discs in the 1980s and squeezed further by the rise of digital music files in the 1990s and 2000s. However, judging See VINYL Page 17

By CHUCK SODER csoder@crain.com

Nathan Kelly wants to see Cuyahoga County get serious about playing “small ball.” Under a proposal drafted by the Cuyahoga County Department of Development, the county over the next few years would spend a total of $100 million, mostly on projects geared toward helping small businesses grow. The proposal suggests that the county should borrow $25 million so that it could start financing projects Kelly next year, said Mr. Kelly, deputy chief of staff for the Department of Development. The plan — which first was proposed by county executive Ed See COUNTY Page 16

INSIDE Indians raise season ticket prices JANET CENTURY

Vince Slusarz, the founder of Gotta Groove Records, in the company’s plant on Cleveland’s near East Side.

The team has begun its season ticket renewal process, and with the exception of two sections, will raise prices 3% for the 2012 season. Page 12

CRAIN’S EDITORIAL: ISSUE 2

No matter SB 5’s fate, legislators must meet in middle

P 44

ublic opinion polls indicate Ohio voters on Nov. 8 will reject Issue 2, thereby gutting the inflammatory Senate Bill 5. If they do, Republicans in the Legislature on Nov. 9 should start crafting a new collective bargaining bill. It is one that should reduce the cost burden on local governments and school districts without setting off another Armageddon-like referendum campaign to block needed

change in the issues that are subject to negotiation in public employee contracts. Unless Ohio wants to go the way of California and govern itself by constant referendum, the majority party in the General Assembly must work with the minority to create bills that won’t cause powerful constituencies to launch petition drives to reverse or bypass the legislative process. That approach requires

members of both parties to stop the extremists among their ranks from setting their legislative agendas. The majority should not impose its will on the minority simply because it can. Likewise, the minority can’t play the loyal opposition continuously by appeasing only their campaign supporters and not thinking of the greater good for the people of Ohio. SB 5 does not fit the model of legisla-

tive compromise we just described. The Republican majority pressed its advantage and passed a bill that neutered the collective bargaining power of public employee unions. Democrats, intent on protecting the interests of the unions that feed their campaign coffers, stood shoulder to shoulder with public employees in opposition to the bill. See TRY Page 10

NEWSPAPER

74470 01032

SPECIAL SECTION

BUSINESS OF FOOD Crain’s analyzes the local economic impact of the industry’s main sectors ■ Page 13 PLUS: ATTRACTING CHEFS, TOURISTS ■ OUTSIDE PERCEPTION

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POWER UP

COMING NEXT WEEK

One category — energy — is conspicuous among factors pushing up the Consumer Price Index for the 12-month period that ended Sept. 30. The Bureau of Labor Statistics reports that while the index rose 3.9% in the past year, energy prices are up nearly 20%. No other category was up more than 5.1% Here’s the government’s breakdown of price increases by category for the past 12 months:

Providing a guide for finance With their current and future leaders bogged down with jam-packed calendars, more companies are reaching out to experts to guide their employees through financial planning.

Category

% change

Apparel

3.5

Used cars/trucks

5.1

Transportation services

3.2

Food

4.7

Medical care services

2.8

New vehicles

3.6

Shelter

1.7

All items

3.9

SOURCE: U.S. BUREAU OF LABOR STATISTICS

Could your global banking needs use some local advice?

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INSIGHT

New Cardinal Fastener owner mobilizes By DAN SHINGLER dshingler@crain.com

Wurth to pay $3.9M for manufacturer, reposition it for recovery

Soon, possibly by the time you read this, Cardinal Fastener & Specialty Co. of Bedford Heights is likely to be recapitalized, restocking and, with a little luck, on its way to rebounding under new ownership. Judge Pat E. Morgenstern-Clarren of the U.S. Bankruptcy Court in Cleveland last Thursday, Oct. 27,

approved the sale of the company to Germany’s Wurth Group for $3.9 million. She also waived the customary 14-day waiting period to close on the sale of a bankrupt company, thus allowing Wurth to close the deal fast. “We hope to close on it by Nov. 1,” said Marc Strandquist, CEO of

Wurth’s Michigan-based Dokka Fasteners unit. He was in court representing Wurth and will oversee Cardinal going forward as it continues to operate locally under its current president, John Grabner. Step one will be to resup-

Grabner

ply Cardinal, a maker of bolts and other fasteners, with working capital so it can buy more inventory. Four people are slated to be added to increase sales and to stabilize relationships with existing customers who need to know

that Cardinal is secure financially, Mr. Strandquist said. Thereafter, he said, Wurth will invest further in Cardinal to expand it. “We plan to bring in about $1 million worth of new equipment” over the next year, Mr. Strandquist said. The goal by the end of 2012 is to get Cardinal close to where it was before its June bankruptcy. Wurth figures the company can reach sales See CARDINAL Page 16

PATENT WORK GEARS UP Attorneys face influx of client activity amid sweeping changes to law By MICHELLE PARK mpark@crain.com

ntellectual property attorney Tim Nauman puts it this way: “I’ve already got gray hair, and I’m losing it faster.” Megan D. Dortenzo, a 48-year-old partner at Thompson Hine LLP quips, “Right now, I guess I have job security ’til the day I retire.” Though there’s debate about whether small businesses and inventors will benefit from recent patent law reform, patent attorneys agree on this: Lawyers will be kept busy. The Leahy-Smith America Invents Act, which President Barack Obama signed into law in September, is the most significant patent reform in almost six decades, attorneys say. See PATENT Page 6

RUGGERO FATICA

From left, Todd Benni, David Movius and David Cupar of McDonald Hopkins LLC discuss patent reform issues during a free roundtable titled, “How the New Patent Reform Act Affects Your Business,” held last Thursday, Oct. 27.

THE WEEK IN QUOTES

Developer plans to rehab Euclid Ave. site for lab space

“We want to make sure that we’re not the dumb money in these deals.”

Victory Building seen as Health-Tech Corridor asset By JAY MILLER jmiller@crain.com

A new owner, a change in strategy and some public money are enabling a vacant building that almost rubs shoulders with the Cleveland Clinic to be rehabilitated. Garson Victory LLC, a partnership led by real estate broker Scott Garson, plans a $24 million transformation of the four-story, red brick Victory Building at 7012 Euclid Ave. into a mixed-use complex that could serve tenants in need of office, research and laboratory space. The investment would open 165,000 square feet for growing businesses in what’s called the Health-Tech Corridor between downtown and Cleveland Clinic. Mr. Garson said he believes his building will be attractive to young companies coming out of the research

labs at the Clinic and University Hospitals or from incubators such as the Global Cardiovascular Innovation Center nearby on Cedar Avenue. The city of Cleveland is helping the developer with a $720,000 loan and $2.6 million in tax increment financing. Most importantly, the city is applying for a $3 million Jobs Ready Sites Grant from the state of Ohio. The $6.2 million in loans and grants would allow the developer to upgrade electrical and mechanical systems and to achieve a green building certification with improvements such as replacing old leaky windows with new, energy-efficient ones. “One of our most successful strategies is to take businesses from the incubators and keep them in the city of Cleveland to grow here instead of moving to the suburbs, as

— Nathan Kelly, deputy chief of staff, Cuyahoga County Department of Development. Page One

“We’re trying to get out of the mentality of competing with other universities and building a stronger work force for Ohio.” — Joseph Dake, department chair for health and recreation professions, University of Toledo. Page 4

JAY MILLER

The Victory Building, at 7012 Euclid Ave. many have in the past,” Tracey Nichols, Cleveland’s director of economic development, told a City Council committee Oct. 24 in support of the city’s financial assistance. The legislation authorizing the plan was passed by council that evening. The city council meeting came exactly three years to the day the Healthline bus-rapid transit route See VICTORY Page 17

“Clevelanders have had a long love affair with good food, but over the years it’s grown deeper ... and more surprising. I grew up in Cleveland, and come back every chance I get.” — Bob Tuschman, Food Network general manager and senior vice president. Page 13

“Our food here is as good … as any place in the U.S. … Here we have restaurants where these guys are craftsmen.” — Greg Forte, hospitality management dean, Cuyahoga Community College. Page 14

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State, local colleges flock to Lakeland’s satellite campus By TIMOTHY MAGAW tmagaw@crain.com

Lakeland Community College in Kirtland opened a 40,000-squarefoot building this month that will serve as a satellite campus of sorts for other colleges and universities, and potentially will create a new revenue stream for the community college. The new building, dubbed the Holden University Center, is across from the college’s campus off state Route 306. Lakeland president Morris Beverage said it’s part of a commitment the college made to voters last year to expand educational offerings in Lake County, which lacks a fouryear public college or university. “This facility was designed around the student,” said Dr. Beverage, noting that it’s the college’s first new building in about 10 years. “This was identified by the community as a high priority to offer students access to bachelor’s and master’s degrees at Lakeland.” The catch, however, is that Lakeland isn’t the only one offering degree programs in the new building, as other schools throughout the state will flex their academic muscles in the college’s new digs. So far, nine public and private institutions have partnered with Lakeland to offer an array of degree programs, ranging from nursing to business administration. Lakeland will net a portion of the tuition revenue generated by each of the partnering schools for housing their degree programs. For traditional courses taught at the building, Lakeland will earn 20% of the partner

PHOTO PROVIDED

Holden University Center, across from Lakeland Community College, in Kirtland university’s tuition and general fee revenue. Online courses will bring in 10% and hybrid courses — those taught partially in class and online — will bring in about 15%. Dr. Beverage said he expects the initiative to “generate positive cash flow in a couple of years.” At present, most of the 403 students enrolled in one of the partnering programs have taken coursework at Lakeland. Lakeland is leasing the building for $881,000 annually from Premier Development Partners, a real estate developer and owner in Cleveland. The lease carries three five-year options to renew and an option to purchase. Participating universities are Kent State University, the University of Akron, the University of Toledo, Ohio University, Ursuline College, Franklin University, Youngstown State University, Lake Erie College and Cleveland State University. Cleveland State and Lake Erie College enroll the most students through the center.

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For professors and instructors at partnering universities that can’t make the trek to Kirtland to teach courses, the new building is equipped with interactive distance learning labs, which allow students to interact with professors via videoconferencing. The building also provides laboratory space for students and offers conference space for area business and community events.

“I think one of the big things about the Holden Center is that it’s an opportunity for students who are place-bound or time-bound,” said Susan Stocker, dean of Kent State’s Ashtabula campus. “If they don’t have easy access to a baccalaureate degree after they finish an associate’s degree, they don’t continue.” The University of Toledo, which sits 140 miles west of Lakeland, is offering an online health information management degree, which will let students from Lakeland who have completed a two-year track to transition into an online bachelor’s program without repeating coursework. The University of Toledo isn’t housing any faculty at the Lakeland campus, but it is continuing to look for ways to expand its offerings beyond Northwest Ohio, according to Joseph Dake, the department chair for health and recreation professions at Toledo. “We’re very much looking for ways we can partner with other universities,” Dr. Dake said. “We’re trying to get out of the mentality of competing with other universities and building a stronger work force for Ohio.” Arlene Holden, a longtime Lakeland benefactor, called the new building a “bright spot in this city.” Ms. Holden and her late husband, Arthur, established an endowed scholarship fund for the college. “People are very excited about this, and I definitely am, too,” Ms. Holden said. ■

California mulls hybrid pension plan By RANDY DIAMOND Pensions & Investments

Elected officials in Columbus, take note: California would have a hybrid pension plan for new state and local government employees under a proposal announced last week by Gov. Jerry Brown. The proposal would create a pension plan with elements of both defined benefit and defined contribution plans and would raise the retirement age for new state and local government employees to 67. The normal retirement age for state and

local government employees in California currently is 60, though some can retire as early as 55 with full benefits. Gov. Brown said the plan would save the state about $900 million a year and that similar savings could be achieved by municipalities. “It’s time to fix our pension systems so that they are fair and sustainable over a long-time horizon,” Gov. Brown said. The state of Ohio also is contending with public employee pension funds that are not sufficiently funded under state statutes.

www.IWantHealthyGrowth.com Volume 32, Number 44 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com-

A p p l e g r o w t h i s h e a l t h y g r o w t h .SM

bined 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 © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136

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L.A. outfit finds time is right to shed downtown Cleveland land Company marketing buildings, lots in view of big construction projects By STAN BULLARD sbullard@crain.com

Owning land in downtown Cleveland is like playing cards. There is a time to hold it and a time to play by selling it. With casino gaming and a new convention center on the horizon, L&R Group of Los Angeles is trying to sell its downtown holdings. L&R has sold one of its properties and is in the hunt for buyers for parking lots near Quicken Loans Arena and the East Fourth Street and Warehouse District redevelopment hotspots. In a small sale that may telegraph bigger property plays, L&R through L&R 612 Prospect LLC recently sold for $1.1 million a tiny, two-story building at 620 Prospect Ave., according to Cuyahoga County land records. Most recently, the structure was the home of the closed View nightclub on the second floor, but it was beloved by bibliophiles as the one-time home of Kay’s Bookstore. Three retailers occupy the first floor. The building’s buyer is 612 Prospect LLC, a Wyoming corporation; its agent is Dallas attorney K. Lyle Ferguson, according to Ohio incorporation records. Property tax bills were directed to the Dallas address. Mr. Ferguson did not return four phone calls and an email from Crain’s Cleveland Business. Gilad Lumer, a partner and member

Manufacturer wants review of carcinogen designation By RUBBER & PLASTICS NEWS

Mar-Bal Inc., a thermoset molder and compounder in Chagrin Falls, has written the Obama administration urging it to support a National Academy of Sciences review of a recent government decision to designate styrene as a human carcinogen. The National Toxicology Program of the U.S. Department of Health and Human Services on June 10 issued its 12th Report on Carcinogens. In that document, for the first time, the National Toxicology Program identified styrene as an anticipated carcinogen, although it acknowledged it had not established that styrene causes cancer in humans. Mar-Bal’s owners, brothers Scott and Steven Balogh, wrote White House chief of staff William Daley on Oct. 24, saying the designation of styrene as an anticipated carcinogen creates difficulties for styrene users. “(The designation) has placed us and thousands of other owners and managers in the untenable position of having to explain to employees and plant neighbors both that we use styrene safely, and that HHS’ action is ill-founded and irresponsible,” the Baloghs wrote to Mr. Daley. Mar-Bal joins with other composites manufacturers in requesting a National Academy of Sciences study of the Health and Human Services action, the Baloghs said. ■

of the Lumer family that co-founded L&R, said the company sold the 620 Prospect building because it is redeploying capital. He said it is exiting some markets to concentrate in others, primarily near its Los Angeles base or at parking lots near airports. L&R operates parking lots and owns land in multiple markets. Mr. Lumer said he knew no more about the buyer of the 620 Prospect building than public records show. Details were handled by others at L&R, he said. However, Mr. Lumer said L&R is marketing the balance of its downtown Cleveland land and buildings.

Those sites include the parking lot occupying most of the space between Prospect and Huron Road west of 620 Prospect; an empty building at 310 Prospect; and a parking lot on the southeast corner of West Ninth and St. Clair Avenue. He said he does not believe the company has put a price on the lots. L&R paid more than $16 million from 2006 to 2008 to buy the properties, which have more than 600 parking slots. The Prospect properties are a half-block east of the site where Rock Ohio Caesars LLC, the joint venture of Dan Gilbert’s Rock Gaming LLC and Caesars Entertain-

ment Corp. of Las Vegas, is constructing a casino welcome center and 342-car parking deck to serve the Horseshoe Casino Cleveland. That site is catty-corner to the casino’s $350 million first phase in the Higbee Building.

Attractive space Mary Anne Sharkey, a spokeswoman for Rock Ohio Caesars, said the company does not comment on potential real estate transactions. She declined comment on whether Rock is an investor in the two-story building with the buyer that has the Dallas mailing address. The L&R lots would be attractive to many potential buyers as parking lots or perhaps development sites,

according to Paul Shaia, treasurer of Cleveland-based Shaia’s Parking Inc. The Prospect Avenue properties gained value since L&R acquired them, he said, because nearby East Fourth has been transformed into restaurants and apartments from a forgotten part of downtown. The unknown, Mr. Shaia said, is how much demand for parking from the casino will spread beyond the nearby welcome center and Tower City parking lots. The casino’s first phase does not open until early next year, when Rock Ohio Caesars expects it to attract five million visits annually. “It’s tight over there now when there is both an Indians and Cavs game,” Mr. Shaia said. ■

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OCTOBER 31 - NOVEMBER 6, 2011

THE PARTICULARS ON PATENTS

In reaction, some law firms, such as Patent, Copyright & Trademark Inventors must file for a patent Law Group LLC in Richfield, have within a year of an invention’s first been hiring. Others are positioning publication, the definition of which is themselves as a business owner’s broad. So, for example, if an invensource for patent reform informator discloses an invention at a trade tion. Among them is McDonald show and fails to file within a year, Hopkins LLC of Cleveland, which he cannot obtain a patent on it. last Thursday, Oct. 27, hosted a free Those applying for patents now roundtable titled, “How the New may request (and pay $4,800 for) Patent Reform Act Affects Your Busipriority examination, through which ness.” the U.S. Patent and Trademark The change garnering the most Office will work to get them a final attention is the scheduled switch in disposition in 12 months instead of March 2013 from a first-to-invent the several years it can take. system to a first-to-file system. While Under the old law, anyone could today, someone who invented somereap damages if he or she brought it thing first can contest another patent if someone beats them in filing, in the near future, the person “So, you potentially see one of who is first to file can obtain the two things,” Mr. Nauman said. “The patent, with a few exceptions. workload for patent attorneys could The law’s “far-reaching tentacles” go way up, or you just have to tell also impact what is needed to obtain (clients) right up front, ‘I’m going to a patent, said Ms. Dortenzo, who get to this when I can.’” leads the intellectual property group Mr. Nauman said he isn’t worried at Thompson Hine. that clients, upon hearing the latter “It has taken words, will go everything and elsewhere. “Every phone call, every turned it upside “(Other patent action that we do now — attorneys) are down,” Ms. Dortenzo said. time is more critical than running under the same loaded gun it used to be.” Under the gun as I am,” Mr. Nau– John D. Gugliotta, managing Though the law man said. member, Patent, Copyright & is in force, many John D. Gugliotta Trademark Law Group LLC rules governing is working to the patent process modify his pracstill must be written. Some of the tice, Patent, Copyright & Trademark changes took effect immediately, Law Group, so he can move faster on while others roll out next year and in initial filings. In the past couple 2013. months, he has hired two patent asUnder a first-to-file system, which sociates to keep up with the demost other countries already have mand. in place, the race goes to the fastest Mr. Gugliotta, the firm’s managing to the U.S. Patent and Trademark member, anticipates a “huge surge Office, which means the workload of activity. and pressure on attorneys will build. “I can no longer take a couple “One would say, when (a client) extra days to get to this, to get to calls me up and says, ‘I have a new that,” Mr. Gugliotta said. “Every idea,’ in a perfect world, I’d file the phone call, every action that we do application today,” said Mr. Nau- now — time is more critical than it man, a partner with the Cleveland used to be.” intellectual property firm Fay Sharpe Attorneys expect a dual system to LLP. “But we don’t live in a perfect emerge, wherein some patents and world. I can’t always do that. I have patent issues fall under the old rules other clients with commitments. and others fall under the new rules.

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to the government’s attention that a product’s patent was mismarked or expired. Now, random parties cannot bring such action; only the government or people and companies with actual damages can. The change will reduce significantly the number of lawsuits, attorneys say. And instead of needing to place patent numbers directly on a product, which in some cases can be difficult depending on the product itself and considering how patent numbers change and expire, patent holders now will be permitted to list patent numbers on public websites. “It’s no longer knowing the one set of rules,” Ms. Dortenzo said. “You have to know two.”

Know the rules Robert McDonald needs to figure out what changes to implement for Cleveland-based coatings giant Sherwin-Williams Co. “The law is changing, and it’s going to make a real difference in how soon we file,” said Mr. McDonald, the company’s associate general counsel in patents and trademarks who attended McDonald Hopkins’ recent roundtable. “You really could lose significant patent rights if you don’t pay attention to this.” Mr. McDonald said he believes patent reform makes ownership clearer, but will make the process more expensive because companies will be filing more paperwork and filing sooner. Plus, he noted, “I think we’ll be filing sooner without as good an idea of what the core of an invention is.” The latter factor is a big reason Mr. Gugliotta sees the reforms as disadvantageous to small companies. “If you’re Steve Jobs in his garage coming up with Apple computer, you’re going to be at a tremendous disadvantage in the future because you can no longer rely on a certain amount of breathing time to perfect your device prior to your filing,” he said. Attorneys note that many large companies that file all over the world already are familiar with the firstto-file system. But even with the steep learning curve it poses, the reform is good for small business, some argue. A new micro-entity status, which allows those who qualify to save 75% on filing fees, helps to carve out the smallest inventors, they say. In addition, the law provides options for challenging another’s patent that are quicker and cheaper and don’t require going to federal court. Citing the new micro-entity status, Cindy Murphy, who does patent work for startups through her intellectual property law firm, Cindy Murphy LLC, said, “It’s going to be very good for businesses in Northeast Ohio, but you’re going to have to know the rules. You can’t just keep doing what you’ve been doing.” Like other attorneys mobilizing to be of service, Ms. Murphy is creating posters to disseminate information about the patent reform. She also is planning informational sessions for small business owners. ■

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Side store in Stein Mart Plaza on Center Ridge Road in Westlake. He also operates The Fur Factory of Alaska by Weiss, where he sells outerwear and other seasonal and travel accessories during the Alaska cruise season.

BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s highlighting positive business news in Northeast Ohio. To submit information, email managing editor Scott Suttell at ssuttell @crain.com ■SuperTrapp Industries Inc. of Cleveland, a maker of performance exhaust products for motorcycles, ATVs, trucks and automobiles, said it has acquired the assets of the JayBrake brand and product line from Horschel Motorsports of Springville, N.Y. Terms of the deal were not disclosed.

JayBrake, founded by Jay Brainard in 1981, is a maker of performance motorcycle parts and accessories. Its products include forward foot controls, handlebar controls, foot pegs, grips, brake calipers and other accessories to fit HarleyDavidson and American V-Twin motorcycles. “We are excited about the addition of the JayBrake line and are confident that the combined talents and resources of the two brands will be of a great benefit to our customers and the marketplace,” said Kevin Berger, president of SuperTrapp, in a statement. Mr. Brainard plans to work closely with SuperTrapp to assist with

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is a new type of business incubator or driven by a unique public-private collaboration. Strategic partners nture, include the City of Mentor, CADVenture, Inc. and Lake Erie College – each contributing an important nutrientt to wth. enhance successful business growth. h are d t i d We’re looking for entrepreneurs who determined to see their innovative ideas blossom into commercially viable product-driven businesses. The Technology Greenhouse provides the ideal environment and all the critical services you’ll need, including early-term ﬁnancial assistance, ofﬁce space, state-of-the-art engineering software, technical training, coaching and business plan development. To accelerate your seedling idea into a revenue-generating reality, contact Tom Thielman, program administrator, at (440) 974-5739 or Thielman@cityofmentor.com or visit MentorTechnologyGreenhouse.com.

OCTOBER 31 - NOVEMBER 6, 2011

Cleveland-based SuperTrapp makes performance exhaust systems for motorcycles, ATVs and other vehicles, like this Harley-Davidson Bagger. product development and the transition of manufacturing to SuperTrapp’s Cleveland plant at 4540 W. 160th St. In addition to its signature tunable disc diffuser exhaust systems, SuperTrapp manufactures the Kerker brand of exhaust systems, Road Legends Series, as well as TC Racing exhausts. ■ Weiss Furs officially has reopened stores on both sides of town under new ownership. Justin Weiss and his company, MJ Investment Holdings, recently purchased the “Weiss Furs” name from his father, Howard “Skipper” Weiss, who had closed the famed Weiss Furs stores in 2009 and January 2010. Terms weren’t disclosed. Mr. Weiss said he has been reshaping the nearly 120-year-old Cleveland company into an outerwear and accessory retailer “that better fits the needs of the modern consumer.” The new Weiss East Side location includes retail and warehouse operations at the corner of Chagrin and Brainard in Woodmere. “Our on-site vaults will enable our East side customers to stop in on a whim to pick up their stored coats without scheduling an appointment in advance,” Mr. Weiss said. “This flexibility is very valuable to today’s busy consumer.” Mr. Weiss also has opened a West

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■ Jeff Charney, chief marketing officer of Progressive Corp., was one of 10 people honored with Adweek magazine’s “Brand Genius/Marketing of the Year” designation for 2011. He was honored last Thursday, Oct. 27, at a ceremony in New York City. Adweek said he was selected for the honor for his role in refreshing Progressive’s “Flo” character, introducing the new “Messenger” character, helping launch the auto insurer’s Snapshot device and integrating all of Progressive’s diverse campaign elements under the broad Progressive brand umbrella. ■ Beachwood native Eric Desatnik is using some pull in Hollywood to bring a new documentary to Cleveland early in its national rollout. Mr. Desatnik is an executive producer of “The Whale,” which is described as a documentary about a young killer whale “who caused upheaval in a small town and amazement around the world when he tried to make friends with humans.” The G-rated film, narrated by Ryan Reynolds, will open Nov. 4 at the Capitol Theatre in Cleveland and Chagrin Cinemas in Chagrin Falls. Mr. Desatnik, who made special arrangements for Cleveland to be one of the first markets to show “The Whale,” said the film “emphasizes the importance of family and home, so to be able to bring this film to my family and to my hometown is a dream come true.” Mr. Desatnik discovered the film through the Environmental Film Festival at Yale, which he founded in 2008. “The Whale” was directed by journalist Michael Parfit and his wife, Suzanne Chisholm. ■ Andrews Software Inc. of Cleveland, a software provider for information management and document destruction businesses, said it has established a quality assurance unit. The new unit’s goal is to “verify that all (Andrews) software solutions, new or evolved, are designed, developed and offered to clients in the most comprehensive way, utilizing the highest standards.” Andrews support service veteran Tana McAtee will lead the quality assurance unit. She will move into her new position as she completes current client support projects, the company said. Ms. McAtee will oversee all aspects of documentation to assist in defining and achieving software application development objectives and client support. Andrews offers industry-tailored software for commercial records centers, media vaults and document destruction companies.

Number of med school apps sets new record By ASHOK SELVAM Modern Healthcare

United States medical school officials saw a record number of applicants in 2011, with applicant ranks increasing by 1,178, or 2.8%, according to the Association of American Medical Colleges. The Washington-based AAMC last week released its annual report on medical school applications and enrollment (the report can be found at http://tinyurl.com/3n7jy5l). A total of 43,919 individuals applied to U.S. medical schools in 2011, including 32,654 first-time applicants, according to the AAMC. First-year enrollment grew by 3% to 19,230, up from 18,665 in 2010. Other highlights include a higher number of black/African-American applicants, after the number had dipped by 0.2% in 2010. Those numbers grew in 2011 by 4.7% to 3,640. Black/ African-American enrollees also rose by 1.9% to 1,375. The number of Hispanic/Latino applicants grew by 5.7% to 3,459, with enrollment rising by 6.1% to 1,633. Asians made up 22.7% of the total applicant pool; applicants who identified themselves as white accounted for 62.3% of the pool. Meanwhile, first-time female applicants grew 3.3% to 15,953, and female enrollment increased to 3.2% to 9,037. The number of first-time male applicants increased by 1.9%, for a total of 16,698 applications with 10,193 enrollees, a 2.9% rise from last year. AAMC said schools continue to attract well-qualified applicants, noting their academic profiles included an average grade-point average of 3.5 and an MCAT score of 29. ■

UPCOMING EVENTS Crain’s this Thursday, Nov. 3, will continue its fall Ideas at Dawn business breakfast series with a panel discussion focused on international markets. The event will take place at the Ritz-Carlton Cleveland and will feature speakers from RBS Citizens NA, Smithers-Oasis Co., Benesch and Magnet. For more information and to register, visit www.CrainsCleveland .com/breakfast or call Jessica Snyder at (216) 771-5388.

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According to CoreLogic, a Washington, D.C.-area provider of financial, property and consumer information, 22.5% of the 48.5 million residential properties in the United States with mortgages are under water, which is hurting homeowners’ ability to refinance their mortgages. The CoreLogic study, for the second quarter, showed that the 22.5% figure actually was down from the first quarter of 2011, when the percentage was 22.7%. An additional 2.5 million, CoreLogic reported, had less than 5% equity, which is considered near-negative equity.

Fall demonstrates carmakers’ challenge with releasing new, redesigned models By BRADFORD WERNLE Automotive News

Despite government push, refinancings still hard to achieve

The Ford brand, in recent years a paragon of the Detroit 3’s improved reliability, stumbled in this year’s Consumer Reports magazine’s reliability survey, while Jeep took the top ranking among domestic brands. Ford’s drop to 20th in the survey from 10th was caused by two factors: teething problems with new and redesigned models — the Explorer, Fiesta and Focus — and problems with new technologies, the MyFord Touch infotainment system and an automated manual transmission on the Fiesta and Focus. “It can’t be good for Ford,” said David Champion, senior director of the Consumer Reports Auto Test Center, in an interview. “It takes a long time to build a reputation for reliable vehicles. But it takes only a year or two to lose that.”

Many obstacles remain for those considering Advisers say homeowners who have mortgages through private lenders still will find it hard to refinance properties and take advantage of low interest rates — even as the government moves to ease lending for federally guaranteed mortgages. “Even people with good credit are still challenged to get the cheaper rates if they have any shadow of problems with their credit, and it doesn’t have to be dramatic,” said financial adviser Mark Balasa, cochief executive of Balasa Dinverno Foltz LLC, which manages about $1.85 billion in client assets.

as $2,500 a year. Getting approval could be difficult, however. Homeowners with solid credit ratings are finding that any instance of income instability or a slowdown in business growth — or even declining home values — can block them from getting approval to refinance. Meanwhile, homeowners with properties that are under water — worth less than the amount due a lender — have an especially difficult time refinancing, advisers said. In many cases, financial advisers have clients with second homes that are under water, and they are unable to refinance those mortgages to lower rates to ease their losses. The CoreLogic study found that

“Even people with good credit are still challenged to get the cheaper rates if they have any shadow of problems with their credit.” – Mark Balasa, co-chief executive, Balasa Dinverno Foltz LLC President Barack Obama said last week that more than 10 million homeowners have mortgages that are under water — thanks mostly to home prices that have dropped 17% on average since 2007. Nevada homes have been hit the hardest, with 60% of that state’s properties in negative-equity situations as of June 2011, according to a CoreLogic study released last month. Nevada served as the backdrop for Mr. Obama’s announcement that the Federal Housing Finance Agency is easing refinancing standards for some loans to help those whose homes are under water. The new rules apply only to loans guaranteed by Fannie Mae or Freddie Mac, and borrowers also must meet certain criteria, such as having no late mortgage payments in the past six months. Housing and Urban Development Secretary Shaun Donovan estimated that borrowers who refinance into current rates of 4% from loans with 5% or 6% rates could save as much

Ford brand drops in reliability study

TROUBLES AT HOME

By LIZ SKINNER Investment News

CRAIN’S CLEVELAND BUSINESS

negative equity is significantly limiting the ability of borrowers to benefit from the low-rate environment. “High negative equity is holding back refinancing, and sales activity and is a major impediment to the housing market recovery,” said Mark Fleming, chief economist at CoreLogic. Banks today aren’t even necessarily finding anything wrong with the mortgage applicant but are still resistant to giving out home loans. One of Mr. Balasa’s clients who owns his primary residence in a Chicago suburb sought to buy a condominium within the Trump International Hotel & Tower in the city. His longtime lender said the rate would be 8% even though the client could show he had enough cash to buy the unit outright. “The bank said it wasn’t interested in expanding its portfolio,” Mr. Balasa said. Ultimately, the client was able to secure a mortgage with a 4.5% rate from a competitor. ■

Wes Sherwood, a spokesman for Ford, said the MyFord Touch system is “pioneering technology for the industry” and that Ford’s PowerShift transmission is among the “most advanced fuel-saving technologies” that allows automatic transmissions to get better fuel economy than manual transmissions. “Where there are issues, we are addressing them,” Mr. Sherwood said. Mr. Champion said Ford’s results show that carmakers still face a challenge in getting new models right in their first year. “We have often found that new or revamped models have more problems in their first year than in subsequent model years,” he said. “Ford’s problems illustrate why we recommend to our subscribers to hold off buying a first-year model.” The Consumer Reports reliability study is based on responses on 1.3 million vehicles owned or leased by the magazine’s print and website subscribers. The survey was conducted in the spring of 2011 by Consumer Reports’ National Survey Research Center and covered the 2002-11 model years. The data are used to predict reliability of 2012 models. The survey ranked 28 brands.

Jeep moved up seven spots to 13th to become the most reliable domestic brand and the Chrysler brand moved up 12 spots in the rankings, although its ranking was based on just two models: the 200 sedan and Town & Country minivan. The redesigned Chrysler 300 sedan was too new for sufficient survey data. The 200, known as the Sebring before a 2011 redesign, finished well above average, but the Town & Country was subpar. Mr. Champion said Chrysler Group’s improvement shows the company has demonstrated a “new determination on reliability.” Time will tell if the company can keep it up, he said. Japanese brands still dominated, taking the first nine spots. Volvo cracked the top 10 at 10th, the best among European makes. Jeep, Lincoln and Chrysler were the top three domestic brands at 13th, 14th and 15th. General Motors also stumbled in the survey, particularly the Buick and Cadillac brands, which each dropped six spots to 24th and 25th. ■ Bradford Wernle is a reporter with Automotive News, a sister publication of Crain’s Cleveland Business.

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OCTOBER 31 - NOVEMBER 6, 2011

PUBLISHER/EDITORIAL DIRECTOR:

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

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

Scott Suttell (ssuttell@crain.com)

OPINION

Try again continued from PAGE 1

Sadly, the bullheadedness of both sides masks an inescapable reality — that cities and school districts are groaning under the weight of employee health care and pension costs that they and the taxpayers who support them can’t sustain. It’s sorry to think cities and school districts need the state to save them from themselves, but they do. Thanks to decades of poorly negotiated collective bargaining agreements, they’ve saddled themselves with health care and pension costs that would drive similar-size private employers out of business. During the 1980s and 1990s, the heads of towns and school districts exhibited many of the traits of executives in the U.S. auto industry. The cash flows of their operations were good, and rather than risk butting heads with their unionized workers, the leaders didn’t negotiate hard but instead kept their employees’ benefits at generous levels. (Besides, it didn’t hurt the re-election chances of public officials if their employees felt good toward them.) However, life since 2000 has been a lot tougher for the auto execs and public employers. The nation has gone through not one, but two recessions, the second of which was rivaled in its severity only by the Great Depression. To survive, the automakers took the Chapter 11 bankruptcy route to rid themselves of pricey labor contracts they no longer could afford. Cities and schools couldn’t do the same. Instead, the heads of public bodies have had to beg their unionized employees to re-open their contracts in hopes of gaining concessions on wages and benefits, or have had to wait until current contracts expire before they can gain some relief from their labor costs. Despite years of stagnant tax receipts, unions have been loathe to give much back. They’d rather suffer layoffs than see their benefits reduced, even if those benefits are out of whack with what most private-sector employees receive these days. The big lie of ads against Issue 2 is that levels of teaching staffs and public safety forces will be more robust if SB 5 is put to death. Quite the opposite is likely to happen. Cities and schools, unable to make a substantial dent in their benefit costs, will be forced to slash the jobs of more teachers, policemen and firefighters, thus continuing to compromise the quality of those services. The cuts will be particularly harmful in education, where seniority rules will mean the loss of young, energetic teachers. The only way cities and schools stand a fighting chance to keep from drowning in their personnel costs is for Ohio to revamp its collective bargaining laws. If SB 5 is killed, a successor bill is in order. It should deal with benefit and seniority issues, and nothing more. Republicans should refrain from taking away such basic union rights as the right to strike, and Democrats should quit portraying union members as downtrodden victims who are asked to make sacrifices that other workers are not. If changes are not made in collective bargaining rules governing public employee benefits and seniority, then the Occupy Wall Street crowd will have nothing on Ohio taxpayers, who eventually will revolt by turning down every tax measure put in front of them. State lawmakers owe them those changes.

FROM THE PUBLISHER

Enough with the polarizing politics

and galvanized the unions and their n our fourth decade of reporting supporters to object, with loud numbers business news in Northeast Ohio, on the Statehouse lawn and in the halls we at Crain’s for only the second of government. They organized a petition time start our editorial on Page One. drive so successful that SB 5 was put on It’s appropriate, given all the ramificathe shelf, despite being signed into law tions of the coming vote on state Issue 2. by Gov. John Kasich. That drive led to a I don’t need to reiterate the points; if referendum, known as Issue 2, which — you’re reading this column you’ve probif rejected on Nov. 8 — would ably also read the editorial. I’ve overturn the legislation and often found that folks who read BRIAN send state government back to editorial-page features are most TUCKER the drawing board. usually thoughtful, engaged and It’s always dangerous to assume thirsty for opinion from all any vote is a fait accompli with sources. a couple weeks left, but irreBut what I hope our state and spective of the outcome of this its lawmakers learn from this is coming election, it should send how fatigued the citizenry is a clear signal to members of the with politics as usual. General Assembly that Ohioans When the Republicans swept are sick of this polarized us-verinto office after the last election, sus-them way of doing business in commanding both houses in the General Columbus (and in Washington, too). Assembly and all the statewide offices, As editor Mark Dodosh wrote so effecthey moved swiftly to further crush the tively in our editorial last week, that same Democrats. They passed Senate Bill 5, sense of political entitlement led the party which emasculated the powers of the in power to make some horrendous and public employee unions. hyper-partisan moves in the redistricting That move created emotional backlash

process. Population loss has cost us two congressional districts, and drawing new districts always has been commanded by the party in power. All this latest redistricting plan does is enhance the Republicans’ odds at retaining power in Columbus. And one-party rule rarely results in good governance. This is no different. Ohio and its cities are losing population. That state’s school systems are underperforming. We have too many governmental entities and too many office holders doing jobs being done by people in similar positions just miles away. What will it take to begin consolidating school districts, law enforcement, fire protection and other shared government services — municipal bankruptcies? The only people who want to keep the status quo are the small number who benefit from it. And, despite what they proudly claim, they’re not really public servants. They’re professional officeholders trying to hang on to a salary or roll up more pension credits, and should be thrown out. ■

THE BIG ISSUE How are you voting on state Issue 2? ‘Yes’ to retain Senate Bill 5, or ‘No’ to repeal it?

BEN GRAY

BOB ROTATORI

KEITH CARSON

RON FREDERICK

Avon Lake

Cleveland

Lakewood

Solon

I oppose it. It’s laying the problem of the securitization of mortgages, and the economic failures due to that, on the backs of the people who keep our communities educated and safe.

I’ll vote against it. Because I think the collective bargaining process has worked, historically, and there’s no reason to change it.

I’m going to vote against it, absolutely. It’s not in the interest of the citizens of Cleveland, Cuyahoga County or the entire state. ... If we cut off (the unions) we’re going to be simply reducing the standard of living for everyone.

I’ll also vote no. No. 1, it does go against the middle class. ... If it doesn’t go down, the Republican Legislature is just going to continue to feel empowered by their total disregard for the rights of individuals and people.

➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.

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‘Math emporium’ also illustrates ills ■ At first glance your Oct. 17, Page One story on Kent State University’s Math Emporium seems celebratory. Then I thought to myself, “What are we honoring — the fact that a large number of our children can’t do basic math?” I think your storyline misses one critical point. Everyone agrees that a significant number of incoming freshmen are severely lacking in math skills. In fact, it requires Kent State to spend $1.2 million on remedial math courses. Doesn’t anyone ever question why students’ acumen in math is so dismal? It seems not. Instead, we just spend another million dollars of taxpayers’ money because the K-through-12 system is failing to do its job. Unfortunately, this always seems to be the education community’s answer. Instead of fixing the root of the problem, it develops a new program, agency or depart-

LETTERS ment. This is why college tuition is through the roof. David Walker Valley City

Unions’ good ol’ days over ■ Regarding Senate Bill 5: The fact remains that public service employees are paid more, have better benefits, have better job security, don’t work as hard, and have a better retirement at the ridiculous age of 50 than the private sector. Don’t think for one second that each individual part of SB 5 won’t be passed as a separate measure once SB 5 is defeated at the polls. In addition, further down the road, the taxpayers are going to refuse to pass any levies or increased taxes to

continue to pay these ridiculous salaries, which is going to lead to many public service sector employees being laid off. The taxpayers are also going to refuse to come up with the cash to cover the shortfalls in many of their pensions. Public service unions need to realize that the good times that came with the housing market bubble are over, and the people who pay their salaries are hurting. John Viviani Mentor

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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: mdodosh@crain.com

October 2011

TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.

LIENS FILED AJCF Corp. Inc. J C Tavern 1321 E. 40th St., Cleveland ID: 31-1539000 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $10,554 TBS Staffing LLC Ameritemps 6100 Rockside Woods Blvd., Suite 350, Independence ID: 26-4060338 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $9,768 Wrightway Care LLC 1081 E. 168th St., Cleveland ID: 42-1696536 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $9,033 Douglas White Agency LLC 9545 Columbia Road, Olmsted Falls ID: 30-1528456 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $9,011

Foote Enterprises LLC 5860 Canal Road, Valley View ID: 26-0724660 Date filed: Sept. 7, 2011 Type: Employer’s withholding Amount: $6,811 RFFG of Cleveland LLC Ameritemps 6100 Rockside Woods Blvd., Independence ID: 26-4075016 Date filed: Sept. 20, 1022 Type: Employer’s withholding Amount: $6,585 Lakeshore Power Washing Inc. P.O. Box 34163, Cleveland ID: 80-0469327 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $6,303 Bar West Corp. Red Lantern 17446 Lorain Ave., Cleveland ID: 34-1279547 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $5,723 The Ventures Inc. P.O. Box 771686, Lakewood ID: 20-5967810 Date filed: Sept. 1, 2011 Type: Employer’s withholding Amount: $5,276 John King Tire & Automotive Inc. 5295 Pearl Road, Parma ID: 36-4496357 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $5,240

Forum Architectural Services LLC 1138 W. Ninth St., Cleveland ID: 26-3647659 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $8,693

Yelsky & Lonardo Co. 75 Public Square, Suite 800, Cleveland ID: 34-1527486 Date filed: Sept. 9, 2011 Type: Employer’s withholding Amount: $5,168

Ten Industry Corp. 10 Industry Drive, Bedford ID: 34-1359680 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $7,956

LIENS RELEASED

Studio Techne Inc. 12210 Euclid Ave., Cleveland ID: 34-1790162 Date filed: Sept. 1, 2011 Type: Unemployment, failure to file complete return Amount: $6,962

Artisan Electrical Contractors Inc. 1348 E. 133rd St., East Cleveland ID: 34-1262732 Date filed: Oct. 31, 2002 Date released: Sept. 1, 2011 Type: Employer’s withholding Amount: $45,123 CP Riebel Inc. P.O. Box 40090, Bay Village ID: 34-1913469

has been acquired by

Date filed: March 15, 2010 Date released: Sept. 20, 2011 Type: Employer’s withholding Amount: $10,618

a portfolio company of

KCM Plumbing Inc. 5914 Ridge Road, Parma ID: 31-1536919 Date filed: Nov. 28, 2001 Date released: Sept. 1, 2011 Type: Employer’s withholding, unemployment, corporate income Amount: $88,005

The undersigned initiated this transaction and acted as exclusive financial advisor to DPAC Technologies Corp.

Westlake Bistro Group Inc. 23800 Detroit Road, Westlake ID: 26-1444384 Date filed: Feb, 1, 2011 Date released: Sept. 13, 2011 Type: Employer’s withholding Amount: $6,608

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Indians raise majority of season tickets 3%

GOING PLACES JOB CHANGES

BOARDS

ENGINEERING

CLEVELAND SIGHT CENTER: Andrew L. Sikorovsky (The Compass Group of Wachovia Securities) to chair; Michael D. Lundin to first vice chair; Thomas J. Gibbons, William L. Spring and Frann R. Zverina to vice chairs; Gary W. Poth to treasurer; David E. Cook to assistant treasurer; Sheryl King Benford to secretary; Karen Peterson Assink to assistant secretary.

CT CONSULTANTS: Thomas B. Gwydir, J. Wesley Hall and Christina M. LeGros to vice presidents.

FINANCE CHASE: Casey Johnston to first vice president, district manager. J.P. MORGAN: Karen Dulaney to vice president, private banker. OHIO COMMERCE BANK: Kate Zenczak-Lupson to credit analyst.

FINANCIAL SERVICE CREEKSIDE FINANCIAL ADVISORS LLC: Randy Schneider and Alan Yanowitz to partners. GRANT THORNTON LLP: John Soucie to managing director. WELLS FARGO ADVISORS: Robert Moore to senior vice president and branch manager, Center Ridge Road office.

LEGAL BROUSE MCDOWELL: Marc B. Merklin to managing partner.

MARKETING

FEDERAL BAR ASSOCIATION, NORTHERN DISTRICT OF OHIO CHAPTER: Diana M. Thimmig (Roetzel & Andress) to president; Virginia Davidson to president-elect; Jason A. Hill to vice president; Dennis G. Terez to secretary; Tim L. Collins to treasurer; Kip T. Bollin to immediate past president. NATIONAL ASSOCIATION OF WOMEN IN CONSTRUCTION, CLEVELAND CHAPTER NO. 156: Rachel Moviel (Arc/eBlueprint) to president; Denise Lewis to vice president; Judy Adelaar to treasurer; Allison Taller to recording secretary; Lynn Gaukin to corresponding secretary; Amy Lewis to immediate past president.

OCTOBER 31 - NOVEMBER 6, 2011

Gwydir

Hall

LeGros

Dulaney

Schneider

Yanowitz

Soucie

Moore

Merklin

Friery

Cola

DIX & EATON: Karin Bonev and Kellie Friery to vice presidents.

AWARDS

Bonev

ROSENBERG ADVERTISING: Becki Cooper to account executive; Jeremy Fleischer to interactive designer/ programmer.

INDIAN CERAMIC SOCIETY: Mrityunjay Singh (Ohio Aerospace Institute) received the Madan Mohan Malaviya Memorial Award.

A. Cola (University Hospitals Case Medical Center) was named a Distinguished Faculty.

STERN: Greg Wereb to business insights analyst.

SOCIETY OF RESEARCH ADMINISTRATORS INTERNATIONAL: Philip

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

By JOEL HAMMOND jmhammond@crain.com

The Cleveland Indians have begun their season ticket renewal process, and it will cost customers a touch more for their 2012 seats. The team last Thursday, Oct. 27, released on its website its 2012 plans. With the exception of the diamond box and left-field bleacher sections, it has raised prices 3% over 2010, the first time since 2008 the team has increased ticket prices. The Indians, last in attendance in Major League Baseball in 2010, this summer drew 1.84 million fans to Progressive Field, an increase of 32% over 2010’s 1.39 million. Bleacher tickets will remain at the $9 price the team installed last season in an effort to attract more fans to an area of the stadium the team felt would raise the energy level. Diamond box seats — the first rows behind home plate and the dugouts — are $55 per game for season ticket buyers. Other prices are $43 for field box seats (first base to third base), $29 for lower box seats (from the bases to the corners), $21 for lower reserved seats (lower-level corners and rightfield bleachers), $18 for lower box seats (underneath an overhand from first base to third base), $16 for view box seats (first rows of upper deck) and mezzanine seats (second

deck in right field), $12 for upper box seats (behind view boxes) and $8 for upper reserved seats (last rows). According to information posted on the Indians’ website, the team’s unique perks package still is in place for season ticket holders: Terrace Club access, one free suite rental and two tickets to the Indians’ club seating area, where fans typically have access to an all-youcan-eat gourmet buffet and a climatecontrolled lounge. Changes may be coming to that area, though. Crain’s reported last Monday, Oct. 24, that the Indians were considering changes to that seating area, listing six different options in a survey emailed to club ticket buyers. The Indians join the Pittsburgh Pirates and Milwaukee Brewers, among other teams, in taking advantage of on-field improvement at the box office. The Pirates for the first time in 10 years will raise prices, after contending for the National League Central crown into late July. Milwaukee — which drew 3.1 million fans to Miller Park and appeared in the National League Championship Series — will raise ticket prices 8.6%. The New York Mets, meanwhile — who suffered through a 77-85 season — will lower ticket prices at least 5% for more than 80% of season ticket holders. Other customers will see no increase. ■

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BUSINESS OF FOOD Local scene appealing to national audience By KATHY AMES CARR kcarr@crain.com

Taking stock of the food economy Crain’s explores the impact of sector’s key ingredients on NE Ohio BEER, WINE AND LIQUOR PRODUCTION: Craft breweries and wineries continue to sprout up around NE Ohio. Gross product: $171.0 million.

RESTAURANTS: The region is gaining a national reputation as a foodie mecca. Gross product: $3.4 billion. URBAN AGRICULTURE: Cleveland

FOOD MANUFACTURING: This sector is growing and attracts new businesses. Gross product: $2.5 billion. BY KATHY AMES CARR kcarr@crain.com

ortheast Ohio has a rich history in agriculture and food manufacturing. Those deep roots have cultivated an increasingly diverse food ecosystem that also is represented by avant-garde restaurants, progressive urban agriculture projects and other related entities. The 16-county region has about 16,000 establishments — mostly small businesses — involved in food, employing about 315,000 individuals, including farmers, according to a study called “The Northeast Ohio Local Food Assessment,” published in 2010 and commissioned by the Cleveland Foundation and the Kent State University Cleveland Urban Design Collaborative, among others. Northeast Ohio has a work force of about 2.4 million, which means about one in eight workers is involved in a food-related business. Northeast Ohio’s food system, like

in particular is known for its progressive policies that are advancing local food systems. Gross product: unknown.

many other sectors, has been bruised over the last couple of years by the recession and subsequent sluggish economy, but signs of rebound abound. In fact, if the region shifted food localization — or meeting local demand for food with local production — from the current 1% to 25% over the next 10 years, the economy could add about 28,000 new jobs, increase regional output by $4.2 billion and generate $126 million in additional state and local tax revenues, according to the food assessment, which has been referred to as one of the most comprehensive examinations of Northeast Ohio’s food economy. “But, there’s a huge capital gap facing small businesses,” said Michael Shuman, a co-author of the study and director of research and economic development at Washington-based Business Alliance for Local Living Economies. “We have to fix this gap to facilitate the transition.”

In this special section, Crain’s Cleveland Business explores some of the key food industries’ current impact on Northeast Ohio’s larger economy and signs of activity within each of the follow categories: beer, wine and liquor production; food manufacturing; restaurants and bars; and urban agriculture. Employment and gross product data, inflated to 2010 dollars, for each of the subsectors is from Cleveland State University’s Center for Economic Development, and the information takes into account a 19-county area. It doesn’t account for activity in large-scale farming, wholesale, retail, storage, waste management and advocacy. See FOOD Page 14

ortheast Ohio food system supporters are the region’s own best promoters. Echoes of culinary and urban agriculture prowess proudly resonate through blogs, community marketing materials and even local media coverage. Local food advocates extol many of the region’s restaurants, saying they represent some of the most forward-thinking concepts in the nation. Others laud Cleveland’s progressive urban agriculture policies, and the proliferation of wineries and craft breweries. The capabilities of new and established food manufacturing and processing facilities also garner praise. But are these perceptions how food industry observers from outside the region view us? Yes, and not necessarily. “I think when most Americans think about innovation, they tend to think about L.A., Dallas, Chicago and New York, but I think that’s changing,” said Darren Tristano, executive vice president of Chicagobased Technomic Inc., a food and food service industry consulting firm. “Cleveland may be under the radar, but it’s doing more, and we’re starting to see trends from the Midwest influence national trends.” Tough economic times are prompting some Americans to eschew uber-healthy West Coast cuisine for comfort foods with an innovative twist, he said. Local food sourcing, particularly in areas with strong agricultural roots, is becoming more ubiquitous. Heads are turning toward the Midwest and Northeast Ohio, Mr. Tristano said. Michael Shuman, a national economist who co-authored “The Northeast Ohio Local Food Assessment,” a comprehensive report conducted in 2010 that explores the food economy, said he thinks Cleveland and the larger region’s diverse food ecosystem is gaining ground on the local and national levels. Food system and economic development insiders are recognizing specifically the area’s urban agriculture initiatives, which are backed by webs of public-private partnerships, along with innovative restaurant concepts that seemingly materialize by the month. See VIEW Page 15

ONLINE: Crain’s directory of Northeast Ohio’s food economy

REGULAR FOOD BLOG COVERAGE: What’s Cooking

The new directory provides a comprehensive look at the region’s food-related businesses. Search by company, county or category. http://www.CrainsCleveland.com/section/food

Kathy Ames Carr’s blog each Monday features news on restaurants, breweries, wineries and urban ag, with a business twist. Check it out at http://www.CrainsCleveland.com/section/blogs02.

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BUSINESS OF FOOD

Food: Despite some lag, activity still robust Beer, wine, liquor production ■ 2010 employment: 1,384, down 18.92% from 1,707 in 2006 ■ 2010 gross product: $171.0 million, down 9.95% from $189.9 million in 2006

he job and gross product data show declines, but there are signs of progress that could position the local industry for a rebound. The economic implications of wineries alone continue to come into focus, as more ancillary jobs sprout up around the growing winery industry, said Donniella Winchell, executive director of the Ohio Wine Producers Association. According to the Ohio Department of Agriculture, Ohio’s grape and wine industry in 2008 generated more than $580 million in economic activity, employing more than 4,000 (including in jobs like lodging and transportation) and providing a payroll of $124 million. At that time, there were 124 wineries in the state; now there are 153. Ninety-one of the 153 wineries are located in Northeast Ohio and account for more than 65% of the total wine production in the state. Craft beer, meanwhile, is undergoing its own resurgence. When Great Lakes Brewing Co. opened its doors in 1988, it was the only

craft brewer in the area. Now, Northeast Ohio has nearly onethird of the state’s 67 breweries, according to The Brewers Association, a national organization for craft brewers. Similarly, craft distilleries slowly are cropping up as consumer demand for higher-quality, locally sourced product increases. Only eight craft distillers are located in the state, although current Ohio laws make it difficult for artisan distillers to enter or expand their businesses. However, a bill moving through the state Legislature would ease restrictions on craft distillers and would open the market so more entrepreneurs could participate in the business. While many of these startups initially may add only a smattering of jobs, economists say small businesses and these kinds of entrepreneurial efforts are key to stimulating an economic recovery in a region that was hit hard by manufacturing job loss during this decade.

(This category includes breweries, wineries, distilleries and manufacturers of soft drinks, water and ice. It does not account for beer, ale, wine and alcoholic beverage merchant wholesaling.)

Food manufacturing ■ 2010 employment: 17,424, up 4.44% from 16,684 in 2006

■ 2010 gross product: $2.497 billion, up 15.92% from $2.154 billion in 2006

base for exporting products. Some of the region’s largest food-related employers include Solon-based Nestle Prepared Foods Co., which employs 1,626; eam NEO measures Orville-based J.M. Smucker Co., business leads by industry with 1,200 employees; and Brewstertype. So far this year, outbased Shearer’s Foods, with 1,010 of-state companies in bioworkers, according to Crain’s 2011 science and advanced energy are Book of Lists and the Crain’s Direcexpressing the most interest in tory of Northeast Ohio Food Busidoing business in Northeast Ohio. nesses. Mr. Foran said it’s those No. 3? Agriculture and food companies and others that help processing. attract interest from outside firms. Team NEO said these leads are “There’s an ongoing interest in especially significant because they the region because of many rearepresent businesses that desire to sons, including access to markets make a move within two to three and consumers, basic access to years, with the goal of adding at raw materials, our agriculture and least 20 new jobs and investing at machine-making capabilities,” Mr. least $1 million each. Foran said. “Those are great selling “I think it’s because of some of points for this the comparegion.” nies we alMr. Foran ready have cited conveyor here,” said belt supplier Jay Foran, AmbaFlex, senior vice which in 2010 president moved to of business Canton from attraction. the Nether“We have lands and many assets brought 10 to already in 15 new jobs to place, with PHOTO PROVIDED that city. The people Pierre’s Ice Cream opened a new factory in Canton plant growing June. positions the things, supplier of making conveyor belts for food producthings and raising things.” tion to both regional and national Northeast Ohio’s food manufacmarkets. turing activity is reinforced by its “They’re going north pretty geographic location and access to fast,” Mr. Foran said. fresh water and abundant crops. J.M. Smucker Co. recently The region is located within 500 moved into a new 153,000-squaremiles of 60% of the U.S. and Canafoot headquarters, which the dian populations, according to company said was its most signifiTeam NEO, which makes it an ideal

cant investment in history, and it announced plans to build a new $150 million plant in Orrville. Cleveland-based Pierre’s Ice Cream Co. in June opened a $9.2 million ice cream factory, which has enabled the nearly 80-year-old company to increase its production efficiency. Anderson-DuBose in Lordstown, a supplier of paper products and frozen items to McDonald’s, also has broken ground on a multimillion-dollar headquarters and distribution center.

Restaurants and bars ■ 2010 employment: 139,788, down 6.56% from 149,598 since 2006 ■ 2010 gross product: $3.350 billion, down 7.89% from $3.637 billion in 2006

oth employment and gross product data have declined in this sector, which includes everything from McDonald’s to Chinese takeouts to locally owned eateries, so it’s difficult to extrapolate the local restaurant impact on the greater regional economy, economists say. According to the Ohio Restaurant Association, the state’s restaurant industry is the third-largest private sector employer in the state. In 2011, Ohio restaurants are projected to register $16 billion in sales, and every $1 spent in Ohio’s restaurants generates an additional $1.14 in sales for the state economy. “Restaurants serve as cultural magnets and gathering places for diverse ethnicities, of which Northeast Ohio is very rich,” said Jarrod A. Clabaugh, communications director for the association. Northeast Ohio’s restaurant scene represents 117 ethnicities,

Culinary scene shows potential to attract chefs, tourists By AMY ANN STOESSEL astoessel@crain.com

reg Forte, hospitality management dean at Cuyahoga Community College, sees Cleveland as being “on the verge” of becoming a culinary destination. That seems to be the consensus when it comes to the question of whether the food sector serves as a magnet for bringing culinary talent and tourism to the area. The region’s reputation appears to at least be whetting the appetites of recreational and professional foodies — but that’s not to say that those in Northeast Ohio aren’t craving more attention. Mr. Forte, for one, thinks a concerted branding effort could help further advance the region’s stature as a culinary hotspot. “Our food here is as good … as any place in the U.S.,” he said. “Here we have restaurants where these guys are craftsmen.” At Positively Cleveland, culinary marketing campaigns currently encompass one-third of the organization’s leisure tourism resources, which amounts to roughly 20% of its overall ad budget, said Lexi Hotchkiss, communications manager for the con-

vention and visitors organization. “All the trends across the U.S. is experiential tourism is where it’s at,” she said. “Culinary is a way to connect with a community.” Culinary has become a theme of its own in the organization’s promotion efforts: The food sector is highlighted on Positively Cleveland’s website; culinary press trips are hosted to introduce the national media to Cleveland’s bounty; and a dining guide is produced to promote the region’s eateries. “The food industry is becoming more popular and relevant,” said Ms. Hotchkiss, noting that any visitor to the area eventually is drawn to food of some sort. “It’s a theme whether we want it to be or not.”

A chefs’ melting pot The region serves up an ideal training ground for student chefs, said Mr. Forte, whose Tri-C Hospitality Management Center is located on Public Square. There’s a wide range of restaurants — and therefore hands-on training opportunities — within a 20-mile radius of downtown, and it’s a place were a student chef can see if he or she can compete. “The nicest thing about Cleveland is that these guys work together,” said Mr. Forte of the region’s

“In Cleveland, I feel like it’s still a little bit fresh and a little bit new.” – Brian Goodman, executive sous chef, The Greenhouse Tavern chefs. “There’s a camaraderie.” Brian Goodman, who moved to Cleveland from New York City to open and work at The Greenhouse Tavern with chef Jonathon Sawyer, said this region gives young chefs chances they might not have in larger locales where “it’s very small fish, big pond.” “You get to be the big fish here,” he said. He also noted that it’s more realistic for a young chef to be able to raise the lower level of capital needed to open a restaurant in this region. Meanwhile, Britt-Marie Culey, owner and executive pastry chef of Coquette Patisserie, was “looking for a big city with a small-town feel” when she and her husband decided to move to Cleveland from Connecticut. Ms. Culey specializes in French pastries, making an average of 1,000 to 1,500 a week from her home kitchen in Cleveland Heights. The majority of Ms. Culey’s work is wholesale, supplying the region’s eateries with her tasty

treats. Coquette Patisserie also sells some retail, including at the Shaker Square farmers market. Ms. Culey’s goal is to have a retail location — and she’s targeted the Cleveland area. “Our whole goal from the beginning is to open a shop eventually,” she said. While there are those like Ms. Culey and Mr. Goodman, who come to Cleveland to work, train and build a business, some say there could be — and should be — more. “In Cleveland, I feel like it’s still a little bit fresh and a little bit new,” said Mr. Goodman, who at The Greenhouse has worked with chefs from Texas, New Mexico, California and Philadelphia. “People are coming here, it’s just not in the masses I was once used to.” Mr. Goodman, a native of New Jersey, praised the region’s local food supply, deeply ingrained food culture and heritage, and family feel, and he, too, plans to stay in Cleveland. He said it’s an easier style of living, and he sees it as a good place to build his career. “The tools are all here and the ability and potential to grow,” he said.

Of Iron Chef fame Todd Gauman, president and co-founder of Northeast Ohio Food Tours, also sees room to grow, but

in a different segment of the food industry — culinary tourism. Northeast Ohio Food Tours offers small groups walking and dining tours of Northeast Ohio’s various neighborhoods and their culinary attractions. The organization, a relatively new venture started within the past year, recently conducted its eighth tour. “Cleveland always seems to be a few years behind,” he said. “Culinary tourism is definitely trending across the nation.” As for Cleveland’s place in this trend, Mr. Gauman said Michael Symon of Iron Chef fame has helped in directing attention to the region’s food scene. “He has definitely played an important role in pushing us on a national level,” he said. And while the Iron Chef may have rung the bell, other people and entities, like the West Side Market, in Northeast Ohio have “kept the tone ringing.” About 40% of attendees on Mr. Gauman’s tours are from outside the area, most coming from a 100to 150-mile radius. The majority of customers, however, are local, with some making repeat trips. Still, Mr. Gauman contends,“We are gaining national recognition now for our culinary uniqueness.” ■

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BUSINESS OF FOOD and many of the region’s estab(prospective) companies, we take lishments and chefs repeatedly them to our different draw national media attention restaurants to woo them. from outlets such as the Food “People leave much Network, Gourmet, Esquire, Bon more impressed and recAppetit, Food & Wine and many ognize that we’re hip more. and cool. Companies want that for Iron Chef Michael Symon, owner attracting and retaining employees,” of Lola, Lolita and others, has he said. been credited with catalyzing Urban agriculture Cleveland’s reputation as a foodie ■ 2010 employment: Unknown mecca; now, food enthusiasts ■ 2010 gross product: from coast to coast tout cuttingUnknown edge culinary approaches from Greenhouse Tavern The employment chef Jonathon and economic impact Sawyer, serial restauis hard to quantify in rateur Zack Bruell, this nascent industry, Dante Boccuzzi of according to local Dante, Melt Bar & observers and econGrilled’s chef Matt omists. Most Fish and others. urban farmers likely Northeast Ohio are working on a advocates commend part-time seasonal the region’s restaubasis, either as a rants and market hobby or for supplethem vigorously to mental income. outside visitors and Other urban farms business travelers. are extensions of Team NEO incornonprofit work, porates restaurants including Refugee into its business atFILE PHOTO/MARC GOLUB Response, which traction efforts, and Iron Chef Michael Symon employs resettled the indirect contriburefugees at its sixtion of these estabacre Ohio City Farm. lishments can be significant. Nonetheless, urban agriculture “There is a growing awareness has been gaining ground over the of our culinary capabilities, and past few years as vacant swaths we sell that as part of the quality of land become more available of life (of Northeast Ohio),” to because of the foreclosure crisis. prospective outside businesses, Mr. Efforts are under way to repurpose Foran said. “When we bring in

View: Chefs, urban ag pique interest continued from PAGE 13

“Local food is a common entry point for people to rethink economic development, and for people not familiar with what’s going on, Cleveland seems to be an unlikely place” for food economy progression, Mr. Shuman said. “Michael Symon has helped put Cleveland on the map, but there are still those stereotypes about the burning river, the rust belt. “I say, let’s forget about the tired old stereotypes and give Cleveland a second look at what’s happening. (The report) really has elevated Cleveland, not just in the locavore circles but progressive economic development circles,” he said.

Food for thought The Northeast Ohio Local Food Assessment explores the region’s current assets and deficiencies, and analyzes the possibility of a 25% shift toward meeting local demand for food with local production. “Your region is pretty diverse in food stuffs, probably one of the most diverse I’ve seen in the country,” said Mr. Shuman, noting how such food businesses in retail, wholesale, manufacturing, restaurants and urban agriculture intersect. “I think that gives the region an incredible opportunity to model a successful food system earlier, faster and cheaper.” Mr. Shuman for 15 years has studied local economy and food issues and has worked on similar assessments for Detroit and New

Mexico, among others. He speaks about food systems and the Northeast Ohio report on a weekly basis all over the country and even in Canada and Brazil. Dan Carmody, president of the Eastern Market Corp., a public market in Detroit, said he has been studying local food system redevelopment in cities throughout the nation, including Philadelphia, Chicago, his own home city and the Cleveland area. “We think Detroit and Cleveland and a handful of other cities are where it’s happening in metropolitan and regional food systems,” he said. “It’s not just about urban agriculture, it’s about the production, supply, distribution and retail, too.” The network of food-related businesses surprised food editor Amy Rosen, who had never been to Northeast Ohio prior to a Positively Cleveland culinary press tour conducted in mid-October. The weekend jaunt included stops at The Greenhouse Tavern, Great Lakes Brewing Co., Firelands Winery and the Culinary Vegetable Institute in Huron, at which chefs from throughout the world convene to experiment with new techniques. “I loved the weekend and am hungry to come back for more,” said Ms. Rosen, who is writing a story for enRoute magazine, Air Canada’s in-flight publication. National media have covered the region’s food scene from different angles; articles on restaurants or urban agriculture initiatives appear in publications like Food & Wine or Entrepreneur. Local chefs and restaurants also are routinely featured on various Food Network programs. “Clevelanders have had a long love affair with good food, but over

FILE PHOTO/JASON MILLER

Peter McDermott has an urban farm in Cleveland

the nation took note of the city of Cleveland, which has developed progressive policies supporting urban agriculture. Cleveland was one of the first major cities in the United States to develop zoning allowing the keeping of chickens, bees and livestock within its

these unproductive sites into farms, which yield the locally grown foods consumers increasingly are demanding. Morgan Taggart, a program specialist at Ohio State University Extension in Cuyahoga County, references as an example of urban agriculture’s resurgence the organization’s market garden training program that launched in 2006. At that time, there were less than a handful of commercial small-scale farms in Cuyahoga County. “Now there are 40-plus smallscale and suburban farms throughout the county,” said Ms. Taggart, a founding member of the Cleveland-Cuyahoga County Food Policy Coalition. Urban revitalization advocates and food enthusiasts throughout

borders. The formation in 2009 of the Cuyahoga County Land Bank, meanwhile, allowed the county to repurpose vacant land for productive uses, including urban farms. Urban agriculture’s growth is nurturing the development of other ancillary business efforts, such as community-supported agriculture programs and farmers markets. According to the OSU Extension, Ohio has 353 farmers markets, far more than double the 141 operating in 2008. Edward “Ned” Hill, dean of the Maxine Goodman Levin College of Urban Affairs at Cleveland State University, commends the urban agriculture efforts to a point, but says this particular sector’s eco-

the years it’s grown deeper, more diverse, and more surprising,” said Bob Tuschman, Food Network general manager and senior vice

president. “From inventive takes on Midwestern fare to an amazing variety of ethnic fare to great upscale bistros, Cleveland’s food

nomic contribution will continue to be limited. “We just need to be sure we’re not overpromising, and calling it what it isn’t,” he said. “It’s a bigger part of community development than economic development.” But what began just a few years ago as grassroots efforts among some entrepreneurs has evolved over the last two to three years into a field with more sophisticated partnerships. Urban growers now are interconnected with grocery chains and restaurants, economic development organizations, government agencies, universities and even local banks. “We have the health care institutions, the Cleveland Clinic, (University Hospitals), investing in local food purchasing or sponsoring farmers markets,” said Brad Masi, founder of the New Agrarian Center, a nonprofit in Oberlin focused on growing a sustainable local food system in Northeast Ohio. “That’s a significant contribution in terms of purchasing power. That has an enormous economic impact.” ■

DATA SOURCES: Cleveland State University’s Center for Economic Development; “The Benefits of Food Localization for Northeast Ohio & How to Realize Them” by Brad Masi, Leslie Schaller and Michael Shuman; Team NEO; 2011 Crain’s Book of Lists; Crain’s Food Economy Business Directory; Crain’s research.

scene can satisfy every kind of foodie. I should know, I grew up in Cleveland, and come back every chance I get.” ■

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FitzGerald when he was running for the job in 2010 — is scheduled to have its first Cuyahoga County Council committee hearing on Nov. 7. The money would allow the county to provide loans, grants and other incentives to finance a variety of projects. For instance, the county might use a few million dollars in the form of a loan or a grant to attract a new business to the region through a proposed large-scale attraction program. However, it might use only a few thousand dollars on projects financed by a proposed micro enterprise program, which is geared toward helping the smallest businesses get off the ground. The availability of sizable incentives would put the county in a stronger position in the competition to attract businesses, Mr. Kelly said. “Up until now the county didn’t have the means to participate in a meaningful way” in business attraction efforts, he said. That said, most of the $100 million fund — which would be paid for with savings the county believes it can generate through efficiency gains and with proceeds from repaid project loans — would go to small businesses, Mr. Kelly said. “A lot of this is small ball,” he said. One program would involve the

county guaranteeing a portion of certain loans banks make to small businesses. The county would take a second look at some loan applications that have been rejected by participating banks. For applicants that appear to have promising growth plans, the county would encourage the bank to lend the money by guaranteeing to absorb a portion of any losses the bank might incur from the loans. When the loan is made, the county would give the bank money to cover the loan guarantees, allowing the county to earn interest on the money while the loan is repaid. When a loan is paid off, the county would receive its money back along with a “success fee,” Mr. Kelly said. It is unclear how the fee might be structured, he said. The guarantees shouldn’t drive banks to make bad loans because the banks still would stand to lose much of their own money if they did, Mr. Kelly said.

Extending a micro hand A few of the new programs are designed to help new companies get off the ground. The micro enterprise program could finance anything from bakeries to landscaping companies, which Mr. Kelly said could be a boon to

Cardinal: A lot of ‘lookers’ continued from PAGE 3

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of $10 million and a headcount of more than 50 employees by the end of next year, Mr. Grabner said. He said the company currently operates with fewer than 30 employees.

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Mr. Grabner always has maintained that Cardinal’s basic business was good. It just wasn’t growing fast enough to pay for investments the company made to get into the wind energy supply chain, and then its creditors cut access to the working capital Cardinal needed to grow. Now, Mr. Grabner said, the company should be able to resume its growth, only faster, with backing from Wurth. “We will no longer have any restrictions on growth,” Mr. Grabner said. “The money was always the limiting factor.” As for Wurth, it sees Cardinal as a long-term investment. It intends to keep the company operating at its existing location and under its existing name, which Mr. Strandquist said is a strong brand that Wurth wants to sustain.

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Wurth’s intention from the beginning was to prevail as the winning bidder for Cardinal, Mr. Strandquist said. But others involved in the Chapter 11 case, especially unsecured creditors, hoped that another party would come in and top Wurth’s “stalking horse” bid and drive up the price. No such competing bidder materialized, but both the court and the creditors who would have benefited from a greater sale price said they were confident the company had been well shopped by Cleveland investment banking firm League Park Advisors. The firm solicited more than 100 potential bidders and generated interest from at least 60 of those, said Cardinal attorney Rocco Debitetto of the Hahn Loeser law firm. Nonetheless, “as of Oct. 21 (the deadline for bids), no competing bids were received,” Mr. Debitetto told the court the day the sale was approved. Calfee Halter & Griswold attorney Jean Robertson, who represents Cardinal’s approximately 200 unsecured

“economically isolated” populations. The proposal also would expand the county’s North Coast Opportunities Fund, which makes loans to startups and provides money to companies applying for federal and state “innovation” grants that require applicants to raise matching dollars. The county council and the county executive would receive recommendations on what to approve from the Cuyahoga County Community Improvement Corp., which consists of public officials and members of the business community appointed by the Greater Cleveland Partnership business advocacy group. The Department of Development is talking with other community organizations to help it screen applicants for individual programs, Mr. Kelly said. “We want to make sure that we’re not the dumb money in these deals,” he said. One partner in the county’s business development efforts has been the Cleveland Foundation, which has advised the county on some aspects of the proposal and could play some sort of ongoing role, said Cynthia Schulz, director of public affairs and strategy for the foundation. “There’s a lot of hope that new money like this can have a significant impact,” she said. ■

creditors — who collectively are owed about $3 million — said she was satisfied with the sale price of the company because she believed it has been marketed well. She was disappointed, though, that no one else ultimately stepped up to compete with Wurth’s bid. “It’s too bad. I am surprised that no one else showed up, based on the activity that we saw leading up to the bid deadline,” Ms. Robertson said. “There were a lot of lookers, and when you have that kind of activity it gets your hopes up and it creates expectations that you’re going to have an auction. But when the rubber hit the road, people decided not to bid.” Secured creditors Wells Fargo and the nonprofit Grow America Fund stand to be paid in full once the sale closes. They will collect $1.8 million and $851,396, respectively. As it stands now, Ms. Robertson’s clients will be taking a substantial haircut on their debt, collecting only about 18% to 19% of what they are owed, she said. However, they are challenging some of Grow America’s claims of secured debt, and if they prevail, Grow America also would be considered an unsecured creditor, Ms. Robertson said. Grow America has yet to answer the group’s claims in the bankruptcy proceedings.

Down to business Wurth and Mr. Grabner just want to get back to work producing bolts for wind turbines and other special uses. Mr. Grabner said it will be refreshing to focus again on running the business, instead of trying to sell it. Mr. Strandquist said he was glad no other bidders contested Wurth’s bid on the company. Ms. Robertson said the final result was probably the best for which all the parties could have hoped. “From the debtor’s standpoint, they didn’t pay enough. From (Wurth’s) standpoint they may have paid too much,” she said. “That’s a perfect result; everyone’s a little unhappy.” ■

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Vinyl: Company seizes on independent stores’ LP interest continued from PAGE 1

by the success of Mr. Slusarz’s venture and rising vinyl sales, consumers appear to be migrating back toward the black circle. Recently featured in the New York Times Magazine, Mr. Slusarz’s small, 13-employee company has become a gentle reminder to the community that manufacturing still holds a place in Northeast Ohio even after many of the steel mills closed and the rubber factories left the area. That’s what Mr. Slusarz, a licensed attorney and manufacturing veteran himself, wanted from the beginning. “I just really wanted to start a business, and I had a strong desire to do something in manufacturing in the city,” said Mr. Slusarz, who estimates his vinyl record plant is one of about 20 to 25 left in the world. Nestled in about 7,000 square feet in the old Tyler Elevator factory off

Superior Avenue in Cleveland’s Tyler Village, the smell of melting wax and the hum of well-oiled machinery permeates Mr. Slusarz’s office off the plant’s main floor. Gotta Groove’s employees, many of whom are musicians themselves, intimately are invested in their work. It’s certainly a change of scenery for the 55-year-old Mr. Slusarz, who had spent 24 years at Newburybased Kinetico Inc., ultimately serving as chief operating officer for the producer of water treatment systems. However, he said the prospect of manufacturing a product so many consumers and musicians hold dear is something to behold. “Some of that is the desire to have that tactile experience of a vinyl record,” Mr. Slusarz said. “Vinyl clearly holds much more intrinsic value than other formats.”

Turning up the volume Though they still comprise a

Victory: Immediate fixups aimed at drawing tenants continued from PAGE 3

opened with the promise of spurring development along the Euclid Corridor. While the sour economy has dampened improvements along the route, this stretch in the middle of the corridor is showing signs of progress with its focus on health care and biomedical businesses. Mr. Garson bought the building last December for $2.7 million and the payment of back taxes from Victory Lofts LLC, a partnership led by Foxmen Properties LLC of Los Angeles. Foxmen had purchased the building in 2005 for $2 million with the intention of turning what had been a warehouse into apartments. The subsequent downturn in the economy stalled that concept. But Mr. Garson, who had been a minority partner in Victory Lofts, realized that while residential development was growing downtown and at University Circle, office and research space oriented to health care was blossoming in between.

A ‘core-and-shell’ approach The core and shell improvements at the Victory Building will enable the developer to attract tenants who want space they can occupy quickly. That work is estimated by the city to cost an additional $15 million, according to information provided to City Council by Ms. Nichols. Because of the public financing, the developer is pledging to create 75 full-time jobs within the next three years. However, Ms. Nichols told City Council that number could rise to as high as 800 as the space is leased. It’s the nature of commercial real estate financing today that lenders only will lend once tenants have committed, but tenants won’t consider older structures such as the Victory Building unless the property is ready for quick occupancy and has been outfitted to be as cost-efficient as new buildings. The state’s Jobs Ready Sites program was created to breach that chasm. Ms. Nichols said that’s why the city stepped in. “We believe this core-and-shell strategy enables us to get work done

on the property,” she said. Mr. Garson and Ms. Nichols are confident this development will be successful because of the way another recent project has leased. At 6700 Euclid, Hemingway Development is close to filling the 128,000-square-foot MidTown Tech Park; it consists of $21 million of newly constructed office and lab space that it broke ground on in the summer of 2010. That success spurred Hemingway, an affiliate of Geis Cos. of Streetsboro, to buy for $6.5 million two older buildings east of MidTown Tech Park for an additional 50,000 square feet of office and incubator space and parking.

Piece by piece The Health-Tech Corridor is a public-private collaboration among the city of Cleveland; the state of Ohio; BioEnterprise Inc., which incubates biomedical companies; MidTown Cleveland Inc., a development nonprofit in the Midtown neighborhood; the Cleveland Foundation; Cuyahoga County; and the Cleveland-Cuyahoga County Port Authority. The idea behind it is to attract to the corridor biomedical companies, medical suppliers to the neighborhood’s hospitals and fledgling companies growing out of a half-dozen nearby incubators, including the Baker Electric Building next door to the Victory Building at 7100 Euclid. This concentration of recent development also may spur retail development around the Healthline stop at East 71st Street. “Our master plan still calls for transit-supported retail development at those transit stops,” said James Haviland, executive director of MidTown Cleveland Inc., the nonprofit that has been mapping out the neighborhood’s redevelopment. He said Mr. Garson’s plan for the Victory Building, which eventually could include retail space, “continues to be consistent with our master plan and certainly ties in seamlessly with the whole HealthTech Corridor concept.” ■

small portion of overall music sales, vinyl record sales for the first six months of the year sat at about 1.9 million — a 41% increase over the like period in 2010, according to Nielsen SoundScan’s midyear report on U.S. music sales. Mr. Slusarz said he believes vinyl sales are much higher because his company prints hundreds of records without bar codes, thus making them unable to track. Many of the big box retailers — Best Buy, for one — have downsized their CD inventories considerably in recent years as digital music sales through Amazon.com or Apple’s iTunes (as well as illegal downloads) continue to gobble up much of the market for recorded music. However, independent record stores have capitalized on the renewed interest in vinyl, and many say their LP sales make up the bulk or a growing part of their business. Many of the region’s record stores carry new vinyl selections in addition to heavy inventories of used LPs. Melanie Hershberger, a co-owner of Music Saves, said her record store on Cleveland’s East Side sells twice as much vinyl as it does CDs.

In the last few years, she said, record labels have begun pressing more vinyl and reissuing old releases in LP form. Longtime customers of the store, she noted, slowly are converting from CDs to vinyl. “Independent stores are the ones more and more carrying and selling vinyl, and that is definitely a contributing factor to our survival,” Mr. Hershberger said. “If this continues in the direction it’s going, record stores will again be vinyl only, which is an interesting cycle.” Likewise, Dave Ignizio, a co-owner of Square Records in Akron’s Highland Square, said vinyl makes up about 50% of his store’s business, with that number inching up toward 60%. “People, for some reason, feel like the vinyl is more important than a CD because they want that artifact and there’s something inherently special about the vinyl — larger cover art, some say the sound,” Mr. Ignizio said.

The human touch As Mr. Slusarz walked around his plant, he described the delicate process of manufacturing a record like an industry veteran.

He admittedly knew little about the business when he bought his first presses from the shuttering Sun Plastics pressing plant in East Newark, N.J. But by talking with others in the industry, he got up to speed on the intricacies of pressing an album. It’s a more detailed process than the printing of CDs — every 25th pressing of each record is listened to for quality and humans man the controls. The company’s first run of 100 records in 2009 took about two weeks to complete. Now, the company moves as many as 20,000 units in that time frame. Mr. Slusarz said everything about a vinyl record is a personal experience. The manufacturing of the record is a hands-on process, the purchase of a record requires walking into a record store, and listening to a record requires more effort than turning on an iPod. But, that’s half the charm. “With your cell phone and text messaging and everything else, you still have to sit down and listen to a vinyl record,” he said. “As the younger generation embraces digital downloads, there’s still that group that wants to own something physical.” ■

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Crain’s Executive Recruiter Marketing Manager Our Marketing Manager will be charged with maximizing the revenue potential of Crain's print publication, website and e-newsletters as well as its data, video and interactive offerings. He or she will work with the sales, audience development, event and editorial teams to create new marketing initiatives and revenue opportunities – including online programs and events, mobile platforms and other digital products. Provide oversight of and assistance in: • Crain's Cleveland Business’ print and digital marketing efforts, with the aims of building brand identity, boosting traffic and enhancing viewer loyalty and sales. • Branding and monetization of Crain’s website and digital products • Enhancement of online event registration system. • Conception and branding of new and existing e-newsletters. • Creation of a brand-wide social media strategy. • Coordination and enhancement of search engine optimization and other strategies to increase website traffic. • Launch and execution of webinars, podcasts, slide shows, new video Liaise and collaborate with: • External vendors and internal departments to ensure project completion. • The editorial team to execute appropriate marketing content for all media. • Coordinate with the audience development manager to address user and Job Requirements: • 5 years experience in marketing or related field • A minimum of 3 years experience managing and executing online projects, including strategic planning, process development and digital marketing. • A solid understanding of web design and development tools to convey to clients, and internal partners. • Familiarity and experience with using web analytics hitbox, Google, etc.

products, etc. • Designing pricing strategies for online products. • Creating/developing promotion plans for Crain’s print and digital products. • Providing the key marketing strategy as a member of the management team. • Assist advertisers in maximizing their use of Crain's online assets. • Create media kits, house ads, event and conference promotions for the brand. • Create and execute external marketing and advertising for the brand. subscriber needs, and expand both audiences. • Work with the advertising sales director to develop robust print and web packages for advertisers • Passion for advertising, marketing and the media business • Knowledge of email marketing best practices • Proficiency in SEO strategies and implementation • Strong writing, project management and organizational skills • A bachelor’s degree in marketing, communications, advertising or a related field

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Manager — Digital Strategy & Development Crain’s Cleveland Business is the premier source of business news across Northeast Ohio, producing a weekly, four-color newspaper as well as a robust website and broad collection of targeted e-newsletters. Job Responsibilities: The successful candidate needs to be a team player and strategic thinker, as well execution of a wide variety of web/digital products and projects.. He or she must as a hands-on developer and content producer who will assist in the creation and be able to: Provide oversight and strategic direction for: • Design review, branding, monetization and development of Crain’s website and • Development of “must-view” pages and new features within the broad array of various digital products, with the aim of boosting traffic and viewer loyalty while Crain’s digital products. helping increase sales. Collaborate with: • News editors and reporters in the creation of new web features and stories as well needs as well as help grow our print and digital audience. as creative, value-enhanced repurposing of newspaper content. • The advertising sales team to develop robust and creative new offerings for ad• The marketing department in developing and implementing social media tools vertisers. and other brand-building strategies and processes. • The video editor on creating new features to enhance the user experience and in• The audience development manager to address digital user and print subscriber crease ad sales. Job Requirements: • A minimum of 3-5 years of previous experience in creating and executing online • A solid understanding of web design and development, and a sincere willingness projects, including strategic planning and process development. to work collaboratively with all departments. • Proficiency in and development experience with, but not limited to, HTML, CSS, • Knowledge of Adobe design tools such as Flash and Dreamweaver is preferred. Javascript, Adobe Premier and other necessary web tools.

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CRAIN’S CLEVELAND BUSINESS

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THEINSIDER

THEWEEK OCTOBER 24 – 30

Spreading out:

MetroHealth announced plans to build a 57,600-square-foot health center in Middleburg Heights — a project slated to cost the county-subsidized health system $23 million. The MetroHealth board of trustees approved the purchase of a 10-acre site for the health center at Interstate 71 and Pearl Road. Construction is expected to begin early next year and to take up to 16 months.

Digital future: Marketing firm Marcus Thomas LLC of Warrensville Heights struck a deal to acquire DigiKnow LLC, a Cleveland-based digital marketing company. DigiKnow’s 17 Cleveland employees were set to begin moving to Marcus Thomas’ headquarters over the weekend. The acquisition allows Marcus Thomas, which employs 120 people, to gain more digital expertise. Terms were not disclosed.

Easy to digest: More than $9 million in federal money has been awarded to five Ohio companies that will use those dollars to install biodigester machines made by Quasar Energy Group of Independence. Quasar owns some equity in each of the limited liability companies, which are in Summit, Wayne, Paulding, Morrow and Belmont counties. The digesters convert the organic matter in manure into methane, which can be used for heating or can be converted to electricity or compressed natural gas. Business acumen: A consulting company in the Washington, D.C., area that opened a technology center in Northeast Ohio last year found a larger space in Seven Hills for the center. Acumen Solutions Inc. of Vienna, Va., moved the technology center into 12,000 square feet at 5700 Lombardo Center. The center develops custom software and provides support for clients.

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

Snow turns in one hot time

¿Habla Español? Si, at MetroHealth

■ Scott Snow is charged with making sure his clients’ finances are in good shape. Turns out he’s in pretty good shape himself. The founder of Scott Snow Financial Advisors in Westlake took the lead about a mile into the Bay Village Heritage 5K Run on Oct. 22 and won the race going away, finishing the 3.1-mile course in 16:59. He beat secondplace Mike McKenna by Snow 32 seconds (and a certain fourth-place Crain’s employee by 74 seconds). Mr. Snow, a 41-year-old Strongsville native and Avon resident, said he started running when he was 12 and runs about 12 races a year in the Cleveland area. He ran in college at the University of North Florida in Jacksonville, where he registered a personalbest 15:14 in the 5K. After college, he returned to Northeast Ohio and worked at Ernst and Young until 2005, when he started his own firm. He said his favorite distance is the marathon, and he has run about a dozen, including a 2:29 in Chicago in 1997; at that time, he was training for the Olympic Trials, but a broken ankle spoiled that goal. Against his college coach’s wishes, he ran a 2:39 marathon in college. His favorite race is the Cleveland Rite Aid Marathon 10K, held each May in downtown Cleveland. — Joel Hammond

■ The MetroHealth System has launched a newsletter geared toward the Hispanic community — one of the county-subsidized health system’s fastest-growing patient groups. The newsletter, “Mi MetroHealth, Mi Comunidad,” will publish every other month. Stories written in English and Spanish will focus on a number of ailments prevalent in the Hispanic community, which makes up about 30% of the health system’s patient population. “To be quite frank, having health information in the native language is critical,” said Dr. Henry Ng, clinical director for MetroHealth’s Hispanic clinic. The first newsletter tackles the growing epidemic of diabetes, which a MetroHealth physician cites as an increasing problem among Hispanic adolescents due to unhealthy diets and a lack of physical activity. Dr. Ng said the newsletter is an extension of a number of other efforts at MetroHealth to better communicate with the Spanishspeaking population. Dr. Ng said MetroHealth, for one, also uses interpreters and bilingual doctors to communicate with its Spanish-speaking population. To view the newsletter, visit www.Metro Health.org/comunidad — Timothy Magaw

WHAT’S NEW

BEST OF THE BLOGS

Just for fund: The Akron Development Corp. formed a $1.5 million fund that will provide loans and grants to biomedical startups that are in Akron or commit to moving to the city. Most of the money will be used for loans. Clevelandbased Medical Mutual of Ohio contributed $1 million to the fund, which also received money from FirstEnergy Corp., Cascade Capital Corp. and Northeast Ohio Medical University.

Glad to deal: Gladstone Commercial Corp., a real estate investment trust based in McLean, Va., bought a recently completed office building in Boston Heights from Geis Cos. of Streetsboro for $4.38 million. The 25,000-square-foot building was constructed this year for payroll company Paychex North America. This and that: Three information technology companies in Northeast Ohio received a total of $750,000 from JumpStart Inc. The three companies — Anderson Aerospace of Kent, OptixConnect of Wooster and SpearFysh of Twinsburg — each got $250,000. … TravelCenters of America LLC entered into a new $200 million revolving credit agreement. The operator of highway travel centers said the new credit line replaces its previous, $100 million credit line, which had a maturity date of Nov. 12, 2012.

■ PNC Bank has struck its second university

Excerpts from recent blog entries on CrainsCleveland.com.

Women are class acts compared with men

Profit flows: The Riverside Co. sold a Swiss company for a gross return of $3.40 for every $1 invested. The private equity firm announced the sale of EM Test Group of Reinach, Switzerland, for about $93 million to Ametek Inc., headquartered in Berwyn, Pa. Riverside owned EM Test, which makes electromagnetic compatibility testing equipment, for nearly four years.

Banking on PNC at Case Western Reserve

COMPANY: Great American Woodies, Medina PRODUCT: Four lines of casual furniture Great American Woodies, a division of Richey Industries, has released a 32-page catalog with new offerings in its Southern Cypress, Cottage Classics, Western Red Cedar and Lifestyle Collections of casual furniture. The catalog is organized by product category and includes sections on seating; swings and A-frames; and tables and table groupings. The Southern Cypress line “is a distinctive and durable wood that offers trouble-free beauty for years,” the company says. Cottage Classics pieces “are constructed from kilndried cypress and are stained and sanded to create a distressed look in various soft pastel colors.” Western Red Cedar is a kilndried, select grade wood that is oil-stained for added luster, according to Great American. The Lifestyle Collection, created from recycled poly-resin, is available in four colors. President Richey Smith said the catalog “positions our Great American Woodies line as the only U.S. manufacturer that offers a broad line of both wood and plastic resin outdoor furniture in the industry.” For information, visit www.RicheyInd.com/ catalogs.html.

■ New research from the Federal Reserve Bank of Cleveland offers more support for what demographers have been noticing since 1980: Women are embarrassing men when it comes to educational attainment. The research comes from economists Dionissi Aliprantis, Timothy Dunne and Kyle Fee. Among their findings: ■ In 2009, 57% percent of the students enrolled in two- and four-year colleges were women. ■ Among recent high school graduates, 74% of the women went on to attend twoand four-year colleges, whereas only 66% of the men did. (The difference in enrollment rates between men and women has widened over the last several decades.) ■ Women have more success in graduating from college than men. For instance, 60% of women in the 2003 freshman class at fouryear colleges graduated within six years. The rate for men was 55%. The problems for men begin long before college. The researchers note that males have a lower level of achievement at a number of stages in the educational process and graduate from high school at lower rates.

Looking for candy? You’ve come to the right place ■ Today is Halloween, which means your kids should be thankful they live in Cleveland — it’s one of the best places nationwide to go Trick-orTreating.

banking relationship in Northeast Ohio, this time with Case Western Reserve University. The bank now operates five ATMs on campus and will offer workshops on personal financial management to students and employees. “We’re really excited about this,” Paul Clark, PNC regional president for Cleveland, said, noting that Case Western Reserve has nearly 10,000 undergraduate and graduate students and nearly 5,000 employees. PNC’s other local university banking relationship began in 2010 with Notre Dame College. Across its footprint, PNC has relationships with nearly 150 schools. Expanding that number is one of Mr. Clark’s goals. “I’d like to have them all,” he said of the schools in Northeast Ohio. “I’m anticipating more.” University banking relationships are important, Mr. Clark said, because they provide resources to students early in their lives. Data has shown that such relationships prove to be lasting, he added. PNC’s relationship with Case Western Reserve, which began in recent weeks, is a “natural” extension of the relationship the Pittsburgh-based bank has had with the university, Mr. Clark said. The bank has provided customary banking products to the school, he said. PNC also now provides students and employees the option to link their CaseOneCard to PNC accounts, thus adding ATM and additional purchasing functionality to campus cards used to enter residence halls and to access meal plans. — Michelle Park

Real estate firm Zillow, presumably to get attention in silly items like this, for the third year has compiled the Zillow Trick-orTreat Index to identify the best cities for Halloween hauls. The index basically comes down to ranking places where kids get the most candy with the least amount of walking and safety risks, though it’s hard to imagine the data are particularly rigorous. For what it’s worth, Cleveland is 14th on the list. San Francisco is on top, as nine of the 20 cities on the list are west of the Mississippi.

Prospect of Kucinich vs. Kaptur captures Post’s fancy ■ The looming Dennis Kucinich/Marcy Kaptur showdown is one of the most intriguing races pitting House incumbents against each other in 2012, according to an analysis by The Washington Post. The newspaper identifies the 10 best such races and puts Rep. Kucinich vs. Rep. Kaptur at No. 2 on the list, behind only a race in California. Here’s how The Post analyzes the race between the two veteran Democrats: “The map here favors Kucinich; two-thirds of the new 9th district is in the Cleveland media market,” according to The Post. “But Toledo-based Kaptur is very popular with constituents, and she can argue that she never considered leaving the state, as Kucinich did when he flirted with running in Washington state,” the newspaper continued. “She’s also dominating Kucinich in cash right now — $604,916 to $90,253 — although Kucinich’s national support base should be able to easily close that gap. Even so, the former presidential candidate doesn’t have this one in the bag.”

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599

DUE AT SIGNING: $4,795 + TAX, TITLE AND FEES $0 SECURITY DEPOSIT BASED ON $53,375 MSRP

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LAND ROVER SOLON

6137 KRUSE DR., SOLON

1-866-210-6707/www.landroversolon.com PRE-OWNED BY THE PERFECT PRE-OWNER

LAND ROVER SOLON

www.landroversolon.com * Calculated from the vehicle’s original in-service date and zero miles. ** Rates shown only for well qualified buyers up to 60 months. Retailer determines actual vehicle price. For special fi nance terms, take new vehicle delivery from retailer stock by 10/31/2011. See your Land Rover Retailer or call 800-FIND-4WD for qualifi cations and complete details.

6137 KRUSE DR., SOLON (440) 542-0601 www.jaguarcleveland.com

CLEVELAND

* Jaguar Platinum Coverage includes all factory recommended scheduled maintenance for 5 years or 50,000 miles, whichever occurs first. Wear and tear items are limited to brake pads, brake discs, brake fluid changes and wiper blade inserts based on factory specified wear limits or intervals. All work must be performed by an authorized Jaguar dealer. For complete details on Jaguar Platinum Coverage, including warranty and maintenance coverage and exclusions, please visit your local Jaguar dealer. ** * With approved credit. 39 month lease. Total due at signing $4,795. Includes $4,196 down payment, $0 security deposit plus tax, title and fees extra. Customer responsible for excess wear and tear. 10,000 miles per year, 30¢ per mile over. Expires 10/31/11. Jaguar Platinum Coverage includes all factory recommended scheduled maintenance for 5 years or 50,000 miles, whichever occurs first. Wear and tear items are limited to brake pads, brake discs, brake fluid changes and wiper blade inserts based on factory specified wear limits or intervals. All work must be performed by an authorized Jaguar dealer. For complete details on Jaguar Platinum Coverage, including warranty and maintenance coverage and exclusions, please visit your local Jaguar dealer.

6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com