Crain's Cleveland Business by Crain's Cleveland Business

20100823-NEWS--1-NAT-CCI-CL_--

8/20/2010

3:57 PM

Page 1

$1.50/AUGUST 23 - 29, 2010

Vol. 31, No. 33

Panther in the hunt for IPO Provider of freight services looks to move toward profitability through sale of stock By DAN SHINGLER dshingler@crain.com

Panther Expedited Services Inc. intends to sell more than freight services in the near future. It has proposed to the Securities and Exchange Commission an initial public offering of its stock and, if the market buys enough of it, Sevillebased Panther will retire as much as

$110 million in high-cost debt that’s been gnawing at its bottom line. Executives at Panther and its majority owner, private equity firm Fenway Partners of New York, both declined to discuss the proposal, citing SEC regulations that prohibit companies from talking publicly during so-called “quiet” periods (before the SEC approves a stock sale and underwriters determine a price

for the offering.)Panther in its SEC filing did not estimate a price range for the stock, nor say how much it intends to raise through an IPO, but it did outline what it will do with the proceeds if the offering is successful. If the offering raises enough money, Panther said it will use its proceeds to repay a portion of a $64.3 million term loan that carries an interest rate of 9.25% and comes due at the end of 2011. It will use another $46.5 million to redeem senior notes that carry an interest rate of 17% and expire in the summer of 2012. Panther also says it plans to use

the IPO to buy $16.4 million in preferred stock owned by Fenway and another $2 million in preferred owned by Panther founder and current chairman Dan Sokolowski. Panther says it also would pay at least part of the $20.6 million in accumulated dividends owed to those preferred shareholders. Fenway bought a majority interest in Panther in 2005 for $76 million, according to Fenway’s web site.

Path to profitability Removing the debt and some of See PANTHER Page 6

High-profile developer deals with debt issues Shopping center developer John McGill says business won’t ever be the way it used to be for him as he struggles through a personal bankruptcy reorganization that involves $18 million in assets and $116 million McGill in liabilities. His situation also likely will affect project stakeholders. Read Stan Bullard’s story on Page 3.

Employers begin to reinstate pay cuts

A FORMIDABLE STRUCTURE CWRU’s lab puts the pressure on bridges, buildings and other big projects

Some operations hold off amid a tepid economy

By CHUCK SODER csoder@crain.com

By TIMOTHY MAGAW tmagaw@crain.com

uilt something that can withstand a million pounds of pressure? You can prove it at Case Western Reserve University’s new infrastructure laboratory, a concrete-filled room built to test whether towers, bridges and buildings will be able to withstand whatever forces might come their way. The university in April opened the 2,400square-foot lab, and now some big experiments are under way. For instance, under the lab’s tall ceiling stands part of a cell phone tower. A telecommunications company is paying the lab to test the tower’s ability to stand up to wind over a long period of time. A hydraulic piston mounted on the lab’s massive concrete “strong wall” slowly pushes the tower back and forth. See LAB Page 17

ON THE WEB: For a video tour of Case Western Reserve University’s infrastructure lab, visit. www.CrainsCleveland.com/lab.

JANET CENTURY

Dr. Dario Gasparini (left), a professor of civil engineering at CWRU, and Dr. Xiangwu “David” Zeng, the department’s chairman, stand in front of a structure that tests the foundation support for wind turbines and a partial cell phone tower in the university’s new infrastructure lab.

INSIDE

Companies and organizations throughout Northeast Ohio stomached across-the-board pay cuts last year in the heart of an ugly recession, but with the economic situation appearing less grim, some of them are restoring what was once taken away. It’s not a groundswell, but Steve Millard, executive director of the Council of Smaller Enterprises, said he’s heard anecdotally that as the economy picks up, smaller companies are starting to restore pay, offer bonuses and contribute to retirement plans again. Still, Mr. Millard said, the activity isn’t universal, and many employers that last year reduced pay are waiting to see how much of 2011 pans out before committing to a reversal of those cuts. “I think they’re still fairly conservative about what might happen,” Mr. Millard said. A survey early this year by ERC, a local organization dedicated to human resource issues, indicated See PAY Page 17

NEWSPAPER

71486 01032

SPECIAL SECTION

EVENT PLANNING Serving large crowds with various needs presents challenges for catering companies ■ Page 13 PLUS: SELLING CLEVELAND ■ STADIUM USES ■ & MORE

CrainsCleveland.com

20100823-NEWS--2-NAT-CCI-CL_--

8/20/2010

11:17 AM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

LIFE IN THE SLOW LANE

COMING NEXT WEEK

Ohio is among the states with the slowest Internet connections, according to a report from Akamai Technologies of Cambridge, Mass. Akamai released its “State of the Internet” report for the first quarter that included a look at the slowest (and fastest) connection speeds for states. Ohio ranked as the 10th-slowest state for Internet connectivity, as 4.4% of state residents have an Internet connection below 256 Kbps, the level Akamai refers to as “narrowband.” Here are the report’s turtles:

A tough time to raise funds

State/region

What’s it like to work for a nonprofit during challenging economic times? We ask some area philanthropic organizations’ staff members about the personal toll it takes when resources aren’t there to meet needs, and what keeps those people working in the field despite all the stress and struggles that go along with the job.

% below 256 Kbps

1. Alaska

8.0%

State/region

% below 256 Kbps

6. Missouri

6.2

2. New Jersey

7.9

7. Illinois

6.1

3. District of Columbia

7.4

8. Iowa

5.8

4. Georgia

6.7

9. Texas

5.3

5. Washington

6.6

10. Ohio

4.4

REGULAR FEATURES Big Issue ......................8 Classified ..................18 Editorial........................8

Going Places ..............10 List: Largest nursing homes ..................16

Reporters’ Notebook ..19 The Week ..................19 What’s New ................19

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editors: Joel Hammond (jmhammond@crain.com) Sports Kathy Carr (kcarr@crain.com) Marketing and food Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Manufacturing Tim Magaw (tmagaw@crain.com) Health care & education Michelle Park (mpark@crain.com) Finance Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks (chendricks@crain.com)

Here’s to

Collaboration

Advertising sales director: Mike Malley (mmalley@crain.com) Account executives: Adam Mandell (amandell@crain.com) Dirk Kruger (dkruger@crain.com) Nicole Mastrangelo (nmastrangelo@crain.com) Dawn Donegan (ddonegan@crain.com) Business development manager & classified advertising: Genny Donley (gdonley@crain.com) Office coordinator: Toni Coleman (tcoleman@crain.com) Production manager: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Kristen Wilson (klwilson@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com)

More Bank For Your Business At FirstMerit, we’re designed to be more collaborative. We take pride in creating custom solutions to ﬁt your speciﬁc needs. We’ve developed products and services that help you put more time and money into the things that matter. We put a team of specialists in your corner, with one dedicated Relationship Manager to streamline the process. All of this and more is what you can expect from us. Achieve more with FirstMerit.

ﬁrstmerit.com 888.283.2303

Circulation manager: Erin Miller (emiller@crain.com) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-877-824-9373

Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: Corporate circulation/audience development director G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation

20100823-NEWS--3-NAT-CCI-CL_--

8/20/2010

11:17 AM

Page 1

AUGUST 23-29, 2010

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

Irish eyes see green in local software maker Complementary fleet management products lead to purchase of Beachwood’s SageQuest By CHUCK SODER csoder@crain.com

FILE PHOTO

Commercial real estate developer John McGill stands on the site of City View Center in Garfield Heights, one of his bigbox-dependent shopping centers, in 2004. Mr. McGill developed the center, sold it and now faces claims from the Environmental Protection Agency over contamination concerns.

SNAPSHOT OF THE STRUGGLE After extending himself personally, well-known developer John McGill suffers as shopping centers scuffle and creditors line up By STAN BULLARD sbullard@crain.com

ven among a large-living breed such as commercial real estate owners who trade big risks for great financial rewards, shopping center developer John McGill lived large. However, keeping parts of the real estate portfolio he built over the last decade is drastically cutting into Mr. McGill’s lifestyle as he works through a personal bankruptcy reorganization in U.S. Bankruptcy Court in West Palm Beach, Fla. Bankruptcy Court Judge Erik Kimball approved Mr. McGill’s amended plan to reorganize June 30 and, after allowing creditors to file objections, scheduled a status hearing on

the plan Sept. 2. “It’ll never be business as usual for me,” Mr. McGill said in a phone interview as he reflected on the reorganization. “It’s something I never would have thought of experiencing.” Lenders and a bevy of contractors stand to share in a big way the pain of Mr. McGill’s misfortune in the process of settling claims in the bankruptcy case of a longtime Northeast Ohio developer whose bankruptcy filing listed $18 million in assets and $116 million in liabilities. To keep some of the real estate assets, Mr. McGill’s payment is personal: His $5 million Palm Beach Gardens, Fla., house is for sale, with proceeds earmarked for a $48 million See McGILL Page 7

“It’ll never be business as usual for me. It’s something I never would have thought of experiencing.”

The Irish company that now owns SageQuest LLC plans to make sure the Beachwood firm remains one of Northeast Ohio’s biggest software companies. FleetMatics Ltd. of Dublin, Ireland, on July 31 closed a deal to buy SageQuest, which makes software meant to help fleet managers track, direct and maintain their vehicles. FleetMatics CEO Jim Travers declined to disclose terms of the transaction, but a newsletter from economic development group TechColumbus

said the all-cash deal “generated multiples of its paid-in capital.” The Beachwood company, now a subsidiary of FleetMatics, will retain its name, its management team and its staff, Mr. Travers said. There is the chance the combined company could cut a small number of positions if it finds redundancies, but Mr. Travers said there are no plans to make cuts. Rather, the company over time hopes to add people to SageQuest’s staff of 85, Mr. Travers said. “We really bought this asset to grow it,” he said. See SAGEQUEST Page 9

THE WEEK IN QUOTES “It’s in a growth area, it has private equity backing and it’s of a size that can attract larger investment classes.” — Sean Dorsey, president, League Park Advisors, speaking about Panther Expedited Services’ proposed initial public offering. Page One

“We suggest to clients that they ask guests on their event invitations whether they have special dietary needs and what they are. … That way we are prepared.” — Molly Coyne, director of sales, Windows on the River. Page 13

– John McGill, longtime Northeast Ohio real estate developer

“Companies have done better in general. Every industry is a little different, but companies are hoarding cash and afraid to deploy it.” — Frank Fantozzi, president, Planned Financial Services LLC. Page One

“Instead of looking at people with disabilities, you should be looking at the needs of the general population. It’s not extra, it’s just life. … It’s just making sure you cover your bases.” — Sheila Dunn, president and CEO, Easter Seals Northern Ohio. Page 14

INSIGHT

Financing spigot re-opens, aiding acquisitions, money flow Big companies, private equity buyers take note By DAN SHINGLER dshingler@crain.com

Money is on the move again in Northeast Ohio, at least for those organizations that deal in large quantities of dollars. Various private equity firms and big companies say they finally can access the financing needed to complete acquisitions or raise money for their balance sheets —

even from sources that were as dry as the Mojave Desert six to 12 months ago. Consider Ferro Corp., which quickly raised $250 million through the sale Aug. 5 of 7.875% senior notes due 2018 that are not secured by the assets of the maker of specialty chemicals. Until recently, such unsecured debt sales had not received rousing receptions from buyers in a skittish credit market.

“We had anticipated being out for five days or so on our road show” to pitch the notes to institutional investors, “but we were actually able to conclude the road show for the offering in one day,” said Ferro treasurer John Bingle, speaking to Crain’s a few days after the sale. Ferro waited to unveil its offering, proceeds from which it will use to retire other debt, until it could approach the credit market with second-quarter earnings that showed both improved profitability and a stronger balance sheet, Mr. Bingle

said. However, he said, Ferro also was “clearly looking for the market to improve from a market that was practically closed for our kind of issuance before.” There’s also money available for financial buyers, such as private equity firms, who were nearly as inactive as dormant volcanoes in 2009 and who were still scarce earlier this year, said Ken Hirsch, managing director at Western Reserve Partners, an investment banking firm in Cleveland. “We’ve seen a lot more activity

in the deal financing market as of late,” Mr. Hirsch said. “There’s just a lot of money that needs to be put to work, so you’re seeing insurance companies, money managers and big institutions starting to stretch for yields.” Not that those investors still aren’t careful, Mr. Hirsch and other experts say. Those with money at stake want to buy debt backed by assets, to lend to companies that are backed by supportive private equity firms or to invest in larger See FINANCING Page 9

20100823-NEWS--4-NAT-CCI-CL_--

8/20/2010

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

1:53 PM

Page 1

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

Sans roaming, Revol eyes broad appeal Access reaches beyond major cities in, around Ohio By CHUCK SODER csoder@crain.com

Revol Wireless customers now have a lot more freedom. As does the companyâ&#x20AC;&#x2122;s sales team. The Independence-based wireless phone service carrier in early August announced that its customers now can travel to almost any metropolitan area in the United States without paying roaming fees, which could help the company attract new types of customers, said chief operating officer Scott Bergs. Itâ&#x20AC;&#x2122;s a big change for Revol, which is incorporated as Cleveland Unlim-

ited Inc. The company previously had standard coverage only in major cities in and around Ohio. Customers have had to pay roaming charges throughout the rest of Revolâ&#x20AC;&#x2122;s network, even in rural areas nearby. Revol originally designed its marketing to work around such limitations. Founded in 2005, the firm targeted teenagers and young adults in urban areas. The idea was that they donâ&#x20AC;&#x2122;t travel much and might prefer a low-cost mobile phone option with unlimited minutes and no contract. Hence, Revol marketing materials featured dark, edgy graphics and a slogan that urged people to â&#x20AC;&#x153;join the

3D3@G 0CA7<3AA 6/A / AB=@G B3:: CA G=C@A Â&#x2014; Âľ=c` ZWbbZS ZO\RaQO^W\U PcaW\Saa Wa\Â¸b a] ZWbbZS O\g[]`S EVOb abO`bSR ]cb Oa be] Ucga eWbV O ^WQYc^ ^ZO\bW\U aV`cPa Wa \]e O ! ^S`a]\ S\bS`^`WaS ES SdS\ aSZZ ZO\RaQO^S aQcZ^bc`Sa 4]` a][S `SOa]\ bVS U`c[^g UO`U]gZS ]\S Wa O V]b aSZZS` <]e eS \SSR []`S POQYV]Sa O\R T]`YZWTba /\R O eOg b] [OYS Wb OZZ VO^^S\ Âś

/b 4WTbV BVW`R 0O\Y SdS`g PcaW\Saa PO\YW\U `SZObW]\aVW^ PSUW\a eWbV O Q]\dSàObW]\ EVS`S g]c R] []ab ]T bVS bOZYW\U O\R eS ZWabS\ BVS\ ]\QS eS c\RSàbO\R g]c` PcaW\Saa O\R g]c` \SSRa eS USb b] e]`Y /\R Oa eS PcWZR g]c` Âż\O\QWOZ a]ZcbW]\a eS [OYS ac`S b] YSS^ g]c W\d]ZdSR 0SQOcaS acQQSaa W\ PcaW\Saa Wa Ò`SZg OQVWSdSR OZ]\S

:SbÂ¸a VOdS O Q]\dS`aObW]\ Ab]^ W\ g]c` Z]QOZ 4WTbV BVW`R 0O\Y QOZZ ca Ob &%% !!! #"' ]` dWaWb #! Q][ 4WTbV BVW`R 0O\Y ;S[PS` 4271

revolution.â&#x20AC;? Over the past few years, however, the company has replaced that image with a brighter one more appropriate for a mainstream audience. Revolâ&#x20AC;&#x2122;s expanded coverage area should have broader appeal as well, Mr. Bergs said. The company learned through surveys and information from its stores that travel restrictions were a big reason many potential customers did not choose Revol. Revol plans to target mobile phone users who pay their own bills and arenâ&#x20AC;&#x2122;t heavy data consumers. That rules out high-end business users, but the expanded coverage might be enough to convince small businesses to consider Revol, Mr. Bergs said. More customers should mean more jobs at Revolâ&#x20AC;&#x2122;s headquarters and sales offices as well as at its 40-plus stores, Mr. Bergs said. Lately, however, Revol hasnâ&#x20AC;&#x2122;t done much hiring. Revol employed more than 450 in October 2009 when it announced plans to lay off 17, or nearly 4% of its work force. Since then the company has let the size of its staff decline by attrition, Mr. Bergs said. Today, Revol employs more than 350 people, including 250 at its headquarters and its stores in Cuyahoga County. Subscriber levels, however, have been â&#x20AC;&#x153;stable,â&#x20AC;? according to Mr. Bergs, who said Revol decided to shrink its staff to become more efficient. Although Revol has some of its own wireless network infrastructure in major cities in and around Ohio, its customers could not make calls a few years ago when outside that network. The company worked with other wireless providers to offer roaming service in many parts of the country for the first time last year. Revol has expanded that service area, in addition to eliminating roaming charges. Phones on Revolâ&#x20AC;&#x2122;s network still wonâ&#x20AC;&#x2122;t get a signal in remote rural areas and in parts of some western states, such as Montana. The upgrade in service comes at a cost: The companyâ&#x20AC;&#x2122;s mobile plans each cost about $5 a month more now than they did before roaming charges were dropped. The most basic individual plan, which does not include texting, voicemail or mobile web browsing, costs $30 monthly, and the most expensive plan, which includes those features and others, is $45. Those prices put Revol â&#x20AC;&#x153;in the ballparkâ&#x20AC;? with other small companies offering wireless service, said wireless industry analyst Jeff Kagan. Such smaller carriers typically offer services in the $25 to $35 price range, while bills from larger carriers such as Verizon and AT&T often exceed $50 a month and can go much higher with data plans. Mr. Kagan noted that there will be less room for smaller carriers that compete on price as smart phones take over the market. For now, however, there are plenty of customers who will sacrifice features to save money. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s enough of a market to keep companies in this smaller sector happy,â&#x20AC;? he said. â&#x2013;

Volume 31, Number 33 Crainâ&#x20AC;&#x2122;s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright ÂŠ 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crainâ&#x20AC;&#x2122;s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136

20100823-NEWS--5-NAT-CCI-CL_--

8/20/2010

2:26 PM

Page 1

AUGUST 23-29, 2010

WWW.CRAINSCLEVELAND.COM

CRAIN’S CLEVELAND BUSINESS

Micros’ Solon subsidiary bolsters global reach of retail software By CHUCK SODER csoder@crain.com

If you go to a mall, there’s a good chance you’ll walk into a store running software written in Micros-Retail’s Solon office. Unless that mall is in another country. The company’s globalization effort, however, is well under way. MicrosRetail over the last two years has acquired about 25 customers outside the United States and Canada, said Jeremy Grunzweig, vice president of operations for Micros-Retail’s store systems group. That progress is a long time coming. Shortly after Micros Systems Inc. of Columbia, Md., bought Datavantage Corp. of Solon in 2003, the subsidiary

began to make plans to use Micros Systems’ international infrastructure to expand overseas. A lot has happened since then. Micros Systems, a publicly traded company that focuses on software for the restaurant and hotel industries, has bought other retail-focused companies and rolled them all into the Micros-Retail brand name. The Solon subsidiary has revamped its point-of-sale system software products so that they fit international security and legal standards, and so that they work with a broader range of products, including other software made by Micros Systems, Mr. Grunzweig said. The Micros-Retail division also has established eight offices in seven

countries that already house Micros Systems offices. It now has staff in Mexico, Argentina, Italy, the United Kingdom, Australia, Singapore and Japan. The Solon office of Micros-Retail needed that foundation to pursue foreign business, Mr. Grunzweig said. “Four years ago it wouldn’t have been possible,” he said, adding that the Solon office has more than 50 international customers when overseas operations of domestic companies are included. More global growth lies ahead: Micros Systems sees international expansion of its retail subsidiaries as one of its biggest opportunities, Mr. Grunzweig said. “Retail is an area where we’re

scratching the surface internationally,” he said. Of the $912 million in revenue the parent company brought in during the fiscal year that ended June 30, 2009, 52% came from international sales. Micros-Retail hopes to build a similarly global customer base, said Carl Nemec, vice president of operations for Micros-Retail’s international efforts. “Our goal is to have the same mix in the retail division,” Mr. Nemec said. Gil Luria expects Micros Systems to have success in expanding its retail business overseas. Mr. Luria, an analyst with Wedbush Securities in Los Angeles, says Micros Systems is a strong company overall, and its

retail products provide “a lot of functionality at a good price point.” The parent company employs 4,700 worldwide. The Micros-Retail subsidiaries employ more than 600, with the Solon subsidiary accounts for nearly 300 of those employees. The Solon office continued to hire throughout the recession, even though it was hard to win business from new customers, Mr. Grunzweig said. Now, however, the company is planning hire at least 25 people, many of them in new positions. He attributed the expansion to more customers planning new projects. “We’re very much a measure of what our customers are asking us to do,” he said. ■

Crain’s editor voted into Press Club hall Those of us at Crain’s Cleveland Business who have worked with Mark Dodosh know him to be a demanding editor, an incisive writer, a patient teacher and a stand-up guy. Those qualities, and others, have earned him a spot in the Press Club of Cleveland’s Journalism Dodosh Hall of Fame. Mr. Dodosh, editor of this newspaper since 1988, is one of seven members of the 2010 class of the Cleveland Journalism Hall of Fame. They will be inducted during a ceremony on Wednesday, Oct. 27, at Corporate College East in Warrensville Heights. The seven inductees were elected by a vote of members of the Press Club and the Hall of Fame. Mr. Dodosh joined Crain’s as managing editor in June 1985 and was named editor in October 1988. Before that, he was a reporter for five years with The Wall Street Journal and an editor for three years at a broadcast news service run by the Journal’s former parent, Dow Jones & Co. Under his leadership, Crain’s has been a frequent winner in the best business publication in Ohio category of the Press Club’s annual Ohio Excellence in Journalism competition. The graduate of Bowling Green State University also has won numerous state and national awards for editorial writing. “It is a nice personal honor, and by extension an honor for our staff and publication,” Mr. Dodosh said. “I’ve been blessed to be surrounded by wonderful people who also happen to be great journalists, and it shows in the quality of their work.” In addition to Mr. Dodosh, the Hall of Fame inductees are Plain Dealer reporter Joanna Connors; former TV and radio reporter Eileen Korey; antique expert Terry Kovel and her late husband, Ralph Kovel; former WJW-TV, Channel 8, NBC and CNN reporter Martin Savidge; and 50-year Industry Week veteran John Teresko. The Hall of Fame committee also selected the late John “Jack” Gladstone Graney, former voice of the Cleveland Indians, to receive the Pioneer Award. ■

Affordable health care makes for better health. And better business. Offering your employees health care coverage is a good thing. Affordable health care coverage is even better. Anthem has a wide range of plans designed to ﬁt different needs and different budgets. Whether you have ten employees or hundreds. So if you thought you couldn’t afford to offer health beneﬁts, think again. Think Anthem. Because keeping your business healthy starts with keeping your employees healthy. To learn more about what Anthem has to offer your business, go to anthem.com/connects2 today.

Life and Disability products underwritten by Anthem Life Insurance Company. Anthem Blue Cross and Blue Shield is the trade name of: In Colorado and Nevada: Rocky Mountain Hospital and Medical Service, Inc. In Connecticut: Anthem Health Plans, Inc. In Indiana: Anthem Insurance Companies, Inc. In Kentucky: Anthem Health Plans of Kentucky, Inc. In Maine: Anthem Health Plans of Maine, Inc. In Missouri (excluding 30 counties in the Kansas City area): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC), and HMO Missouri, Inc. RIT and certain affiliates administer non-HMO benefits underwritten by HALIC and HMO benefits underwritten by HMO Missouri, Inc. RIT and certain affiliates only provide administrative services for selffunded plans and do not underwrite benefits. In New Hampshire: Anthem Health Plans of New Hampshire, Inc. In Ohio: Community Insurance Company. In Virginia: Anthem Health Plans of Virginia, Inc. trades as Anthem Blue Cross and Blue Shield in Virginia, and its service area is all of Virginia except for the City of Fairfax, the Town of Vienna, and the area east of State Route 123. In Wisconsin: Blue Cross Blue Shield of Wisconsin (“BCBSWi”), which underwrites or administers the PPO and indemnity policies; Compcare Health Services Insurance Corporation (“Compcare”), which underwrites or administers the HMO policies; and Compcare and BCBSWi collectively, which underwrite or administer the POS policies. Independent licensees of the Blue Cross and Blue Shield Association. ® ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association. OH_CrainsCleve_082310

20100823-NEWS--6-NAT-CCI-CL_--

8/20/2010

3:29 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

Panther: CFO respected corporate steward continued from PAGE 1

the preferred stock could clear the way for Panther to become profitable, according to income statements filed with the SEC. The company, which works largely with owner-operator independent truck drivers, provides ground, air and nautical shipping services. The bulk of its business is providing fast and precise “expedited” shipping to its customers, its SEC filing and web site state. Expedited shipping involves reacting quickly to customer shipping requests and delivering freight within time windows as narrow as 15 minutes — all so that companies more precisely can control their inventories. This segment of the shipping business has been growing in recent years as manufacturers, retailers and other businesses strive to keep inventories as low as possible, but goods still on hand when needed. Panther’s revenues were down about 17% in 2009, to $157.8 million in 2009 from $189 million in 2008, but previously revenues had been growing. Panther also has acquired other independent freight companies. Its challenge in recent years has been dealing with its debt costs. After barely breaking even in 2007, Panther lost $2.1 million in 2008 and $43.3 million in 2009 as its interest expenses totaled $11.3 million in 2007, $12.7 million in 2008 and $14 million in 2009. Also

“(Louis Schneeberger) knows a good deal from a bad deal as well as anyone I’ve ever met.”

ically and through acquisitions.”

– Ralph Della Ratta, managing partner, Western Reserve Partners LLC

But it will be up to investors to make Panther’s IPO a success. While such transactions were laughable a year ago, there already have been some successful IPOs this year, and even General Motors has announced its intention to issue stock, following its government bailout, later this year. Panther just might have what investors are looking for, said Sean Dorsey, president of League Park Advisors in Beachwood, which raises debt and equity capital for client companies in the Midwest. Mr. Dorsey was formerly a managing director of McDonald & Co. and KeyBank Capital Markets and from 2002 to 2009 was head of National City Investments, where Panther was a client. Panther’s deal is likely to be large enough to attract investors. The logistics industry it serves is popular with investors trying to cash in on the rush by business to increase productivity and the presence of a private equity investor such as Fenway likely will increase investor confidence, Mr. Dorsey said. “It would be in the category of a fairly significant deal and it has the elements people are looking for,” Mr. Dorsey said. “It’s in a growth area, it has private equity backing and it’s of a size that can attract larger investment classes.” ■

in 2009, the company wrote off $33.5 million in goodwill and intangible assets, according to its SEC filing. Without the debt, Panther’s operating income was $12.1 million in 2007 and $10.1 million in 2008, with an operating loss of $38.1 million in 2009. The loss last year mainly was due to the writeoff of goodwill, but also reflected a year in which Panther said its business was down due to the general economy. Since then, however, it has reported a rebound in revenue. “For the six months ended June 30, 2010, we generated revenues of $95.0 million, an increase of 43.1% from the first six months of 2009,” Panther states in its filing. This is Panther’s second attempt at an IPO — it registered for an offering in 2006, but never got its deal to market before investors’ appetites for IPOs waned before the recession.

Power player This time, Panther has a new star player in the form of Louis Schneeberger, who joined Panther in March and is a well-regarded veteran of numerous Northeast Ohio corporate success stories. Mr. Schneeberger was chairman of Royal Appliance Manufacturing

Co.— maker of Dirt Devil vacuum cleaners — when that company was sold in 2003. He also was chief financial officer of specialty chemical maker OM Group Inc. from 2004 to 2005 and served as CFO of steel distributor Olympic Steel Inc. when that company successfully went public in 1994. Ralph Della Ratta, a close friend of Mr. Schneeberger and one of the investment bankers who helped bring Olympic Steel to market, said he’d not seen Panther’s proposed deal. However, he was inclined to think it was worth bringing to market if Mr. Schneeberger was behind it. “He knows a good deal from a bad deal as well as anyone I’ve ever met,” Mr. Della Ratta said. Mr. Della Ratta, who is managing partner with Western Reserve Partners LLC in Cleveland, said he’s been aware for some time that his friend believed Panther was in a position to grow and become profitable if the freight company could restructure its balance sheet and eliminate some of its debt costs. “When he went over there (in March) he was very high on the company,” Mr. Della Ratta said. “He felt that the growth prospects were incredibly strong both organ-

Market forces

ON THE WEB

Story from www.CrainsCleveland.com

Riverside touts deal’s return The Riverside Co. finalized a deal to sell a Virginiabased window film manufacturer. The private equity firm did not disclose the buyer or the sale price for SunTek Holding Co. Riverside bought SunTek, which does business as Commonwealth Laminating & Coating Inc., in April 2006. Graham P. Hearns, a spokesman for Riverside, said the firm received a return of $10 for every dollar it invested. “It’s one of our most successful exits in 22 years,” Mr. Hearns said of the sale. “Normally, we’re looking for a two- to three-times return. We certainly never count on a 10.” Commonwealth Laminating benefitted, too. Company president and CEO Stephen Phillips said the Martinsville, Va., company experienced “remarkable expansion.” Commonwealth Laminating’s senior management team, led by Mr. Phillips, will remain in place following the sale. This is the fifth sale of 2010 for Riverside, which owns 71 companies. Mr. Hearns said Riverside expects to sell at least two or three more before the end of the year. — Michelle Park

20100823-NEWS--7-NAT-CCI-CL_--

8/19/2010

3:47 PM

Page 1

AUGUST 23-29, 2010

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

KSU places more emphasis on football New AD leads charge to drum up interest on the field at school best known for basketball By JOEL HAMMOND jmhammond@crain.com

Long known for its success on the basketball court, Kent State University has been devoting far more resources of late to its football program. The university just completed $10 million in renovations to 41-year-old Dix Stadium and this offseason launched its â&#x20AC;&#x153;90Ksu: Everyone Countsâ&#x20AC;? initiative, aimed at raising the football programâ&#x20AC;&#x2122;s profile and driving attendance beyond 90,000 over a six-game home schedule. This from a school that has won five Mid-American Conference menâ&#x20AC;&#x2122;s basketball tournament championships in 12 years and made it to the Elite Eight of the NCAA tournament in 2002. The gridiron push was supported by new athletic director Joel Nielsen, hired in March from the University of South Dakota. It includes: â&#x2013; television advertising, including

on ESPN during Major League Baseballâ&#x20AC;&#x2122;s Home Run Derby and Fox during the All-Star Game, to promote the program; â&#x2013; a new effort to reach incoming students, with an athletic department representative at each of the Nielsen schoolâ&#x20AC;&#x2122;s Destination Kent orientation sessions to make new and transfer students aware of the program; and â&#x2013; a new tailgate area and improved game atmosphere, part of which stems from a new scoreboard as part of the Dix Stadium renovation. The efforts have paid off, according to director of athletic communications Alan Ashby, as Kent so far this summer has seen advance ticket sales climb to 30,000, up 50% from 20,000 at the same point last year. The name of the â&#x20AC;&#x153;90Ksuâ&#x20AC;? initiative is derived from the NCAAâ&#x20AC;&#x2122;s mandate that all Football Bowl Subdivision (FBS, formerly Division 1-A) teams average 15,000 fans per game or risk losing FBS status. Kent State averaged 15,512 per game last year, or a total of 93,072 for its six home games, according to NCAA figures. By comparison, the University of Akron averaged 17,382 last season. Theyâ&#x20AC;&#x2122;re not the only MAC schools

toeing the line: Western Michigan drew the most fans on average in 2009, at 20,330. But five schools â&#x20AC;&#x201D; Northern Illinois (No. 111, 14,889), Bowling Green (No. 113, 14,044), Miami (No. 117, 11,810), Ball State (No. 118, 10,888) and Eastern Michigan (No. 120, 5,016) â&#x20AC;&#x201D; are below the mandate, which schools must reach once in a twoyear rolling period. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve said from Day One that football is going to be a priority and the NCAA already had its attendance requirement in place, so we decided to take both notions and turn them into one campaign,â&#x20AC;? Mr. Nielsen says at www.90Ksu.com/index. Kent State might just have the horses to support the initiative: Thanks in part to the stadium makeover, the school has vaulted past other MAC schools in recruiting, ranking third, first and third in acquisition of talent over the last three years, according to evaluator Rivals.com. The Flashes will need those players to improve upon their 19-40 record over the last five seasons. â&#x20AC;&#x153;All this momentum is great, but we have to put wins on the field,â&#x20AC;? head coach Doug Martin said in late July at the MACâ&#x20AC;&#x2122;s media day. â&#x2013;

NEED A GREAT PLACE TO CELEBRATE? HUDDLE UP.

McGill: Retailersâ&#x20AC;&#x2122; troubles hurt developer continued from PAGE 3

mortgage from Bankers B&T. The Jupiter, Fla., office of McGill Property Group, which moved to that city from Solon in 2004, is also for sale to satisfy claims. Key Bank of Cleveland repossessed Mr. McGillâ&#x20AC;&#x2122;s 35-foot Sea Ray yacht, valued at $232,000, to satisfy a $325,000 boat loan. The McGill Sports auto racing team runs no more. Moreover, Mr. McGill has agreed to live on what court documents estimate is a $200,000 yearly allowance â&#x20AC;&#x201D; huge for most, but a pittance compared to his more than $2 million in income in 2008, prior to the bankruptcy. The court proceedings also show he will surrender at least $6.5 million in future profits from his retail properties to lenders for five years. Meanwhile, lenders will receive 80% of the profits from the 15 above-water assets he will continue to own, such as Amherst Market Place, a Target-anchored shopping center in Lorain County, plus land in Parma and other retail centers he owns from Mansfield to Florida. Such is the outgrowth of a personal bankruptcy the South Florida Business Journal described as one of that regionâ&#x20AC;&#x2122;s largest, even in a place known for huge bankruptcies. Northeast Ohio industry insiders such as David Browning, managing director of the Cleveland office of broker CB Richard Ellis, say the case is unparalleled. Other local real estate developers with fiscal woes over the last 20 years jettisoned individual properties or lost them to foreclosure. By contrast, Mr. McGill is wrestling to keep intact as many of his properties as he can â&#x20AC;&#x201D; though at a personal cost.

Crunched by credit The key piece to Mr. McGillâ&#x20AC;&#x2122;s downfall was how he financed the start of McGill Property Group in

2004. He was striking out on his own after 20 years following the death of his mentor and partner, Bertram â&#x20AC;&#x153;Bartâ&#x20AC;? Wolstein, founder of what is now Developers Diversified Realty Corp. of Beachwood. Mr. McGill had years of experience developing and building huge bigbox shopping centers and the retail contacts to fill them. Contending with an increasingly tight lending market, Mr. McGill used a $5 million personal line of credit and a $6 million mezzanine line of credit from the former National City Corp., now PNC, to help finance his transactions. For many projects, he also signed personally for real estate loans supported by the projects. When those lines of credit expired in 2009 during the heart of the recession, â&#x20AC;&#x153;no one else wanted to take that (debt) on,â&#x20AC;? Mr. McGill said. It wasnâ&#x20AC;&#x2122;t long before he became the object of nine lawsuits to collect on personal guarantees on projects. â&#x20AC;&#x153;You never in your life expect to develop a property and see retailers go out of business like we did,â&#x20AC;? Mr. McGill said, referring to the shutdowns of Linens-N-Things and Circuit City that played prominent roles in several properties. â&#x20AC;&#x153;Cash flow went way down. Real estate values have come way down.â&#x20AC;? Even with his personal bankruptcy filing, Mr. McGill hasnâ&#x20AC;&#x2122;t avoided hits to some of the properties in his companyâ&#x20AC;&#x2122;s portfolio.

Solo bidder sweeps in For one, The Shops at Marketplace in Bainbridge Township went under the gavel Aug. 12 at a Geauga County sheriff sale. The shopping center, which includes new Target and Home Depot stores on sites owned by their respective retailers, primarily consists of additional sites for development near the trafficenticing big-box stores and stands to sell at a swell price â&#x20AC;&#x201D; for the

prospective buyer. Youngstown real estate investor Vincent Fond, the only bidder to show out of several prospective buyers, bought the property for $6.8 million â&#x20AC;&#x201D; free of some $32 million in liens against it. â&#x20AC;&#x153;All of these developments are front-loaded with costs to install infrastructure, to put in roads,â&#x20AC;? Mr. McGill said. â&#x20AC;&#x153;Retailers we had letters of intent with dropped out. The value of (Shops at Marketplace) dropped, so the lender said it was underwater. (The bank) opted not to wait for it to fulfill its potential.â&#x20AC;? Meantime, on the south side of Aurora Road in Bainbridge, US Bank of Minneapolis, the lender for the Marketplace at Four Corners, began to threaten foreclosure after the shopping center lost a LinensN-Things store and the shopping centerâ&#x20AC;&#x2122;s cash flow fell below expenses. Bainbridge South LLC, the company Mr. McGill used to develop Marketplace at Four Corners, filed in April for Chapter 11 bankruptcy reorganization, also in South Florida. Since Walmart expanded its store at the Marketplace at Four Corners into a supercenter last year, Mr. McGill said, revenues for retailers throughout the center are on the upswing. So is interest in remaining parcels. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not going to allow the lender to foreclose on a good, viable property,â&#x20AC;? Mr. McGill said of the Market Place at Four Corners. â&#x20AC;&#x153;We wouldnâ&#x20AC;&#x2122;t allow it to be stolen. We just need to rejuvenate the space.â&#x20AC;? That bankruptcy case is pending. Now on the last leg of his legal nightmare, Mr. McGill said he and son Matt McGill, a project director for McGill Property Group, are focused on the future. For some time that future primarily will involve leasing existing properties or selling residential land sites. â&#x20AC;&#x153;We wonâ&#x20AC;&#x2122;t be running everywhere looking at the next development site,â&#x20AC;? John McGill said. â&#x2013;

=TT aWbS SdS\b ]` PcaW\Saa `Sb`SOb- >ZO\ g]c` \Sfb UObVS`W\U Ob bVS >`] 4]]bPOZZ 6OZZ ]T 4O[S EWbV W\Q`SRWPZS W\bS`OQbWdS SfVWPWba bVS`SÂ¸a \] PSbbS` ^ZOQS b] aQ]`S O U`SOb bW[S

1OZZ !! "#$ & % ]` dWaWb ca ]\ZW\S Ob ^`]T]]bPOZZV]T Q][

We understand that one size does not Âżt all. We know this much is true: small clients become big clients and big clients still have small needs. So we approach every opportunity - large or small - as if our reputation is on the line. Because it is. Contact Jones Lang LaSalle today. Weâ&#x20AC;&#x2122;re the one company that Âżts all your real estate needs. For real estate services: Robert J. Roe Managing Director + 1 216 861 7171 www.us.joneslanglasalle.com ÂŠ 2010 Jones Lang LaSalle IP, Inc. All rights reserved.

20100823-NEWS--8-NAT-CCI-CL_--

8/19/2010

4:43 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

PUBLISHER/EDITORIAL DIRECTOR:

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

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

Scott Suttell (ssuttell@crain.com)

OPINION

Run hard

he race on the information superhighway will go to the swift. It’s heartening, then, that Northeast Ohio is in for a boatload of cash from the federal government that will let more organizations tap into the high-speed Internet network that nonprofit fiber-optic provider OneCommunity is developing in the region. OneCommunity justifiably was giddy last week when it announced that it will receive $44.8 million in stimulus money that will fund almost two-thirds of a nearly $70 million expansion of its fiber-optic network. The grant will allow OneCommunity to add nearly 1,000 miles of fiber-optic cable to an existing network of more than 1,300 miles and will broaden its access to 27 counties. It has been OneCommunity’s mission to create an open network that gives colleges, hospitals, libraries and government bodies access to high-speed broadband services that promote interaction among themselves and with their constituents. Whether it’s doctors sharing important medical information in the treatment of patients or schools educating young minds via distance learning classes, OneCommunity sees that network as a tool for allowing institutions and people in Northeast Ohio to thrive in a knowledge-based economy. However, the network is just a tool, and like any tool, how well it works depends largely on the hands that are putting it to use. As Scot Rourke, president and CEO of OneCommunity, stated in a Personal View piece last week on these pages, it’s essential that organizations throughout Northeast Ohio “develop a regional vision for collaboration and sharing of resources leveraging our platform to make the Cleveland area a world leader, as we were a century ago during the second Industrial Revolution.” The opportunities that the visionaries behind OneCommunity are providing to the region by building this world-class broadband network are exciting. The real excitement will come, though, when companies, institutions and governments exploit the technology to its fullest potential. OneCommunity is laying down the fiber-optic track to success; it’s up to others to run hard on it.

Wise gift

FROM THE PUBLISHER

Plan for Pistons, Detroit a bold one

owntown Detroit is on the Arena, the Fox Theatre, a downtown verge of becoming downtown casino and the Tigers and Comerica Park, Cleveland. wants to buy the Detroit Pistons and OK, so that might be a move the pro basketball team downtown. stretch. Detroit’s downtown is signifiMr. Ilitch, founder of the Little cantly bigger, and its casinos already are Caesar’s pizza empire, and his wife and in place. Cleveland has a few advantages; partner, Marian, are bidding to buy the its urban university sits adjacent to its Pistons and hope to build a new downtheater district, one of the town arena that would be home largest in the country, and both BRIAN for both the basketball and are nearly in the center of TUCKER hockey teams. Speculation is downtown. that the couple would attempt to Detroit got started a bit later locate the new facility near their with the construction of pro existing sports complexes. sports facilities downtown. But If they pull this off, it would once the Motor City got started, be unprecedented in American the result was quite impressive, sports ownership and trump as any visitor to Ford Field Cleveland’s then-bold move (home of the NFL’s Lions) and when it built Gateway (the comthe adjacent Comerica Park plex of two parking garages, (where the Tigers play baseball) can baseball stadium and basketball arena) attest. A short walk away is the Fox downtown in the 1990s. Theatre, the renovation of which was led Many questions remain, of course, by Ray Shepardson, the Clevelander who and a key one is whether the Ilitches led the salvation and remake of our Playactually will be successful in buying the houseSquare theaters. Pistons. Then, they’d need to figure out Now Mike Ilitch, who owns the Detroit what happens with The Palace in suburban Red Wings hockey team and its Joe Louis Auburn Hills that’s been home to the

Pistons. And would they be asking for public assistance to build at a time when Michigan is still hurting economically? Would the public support it? Detroit was the first big city I worked in, and I still have a fondness for it, despite its challenges. Like Cleveland, it is a tough,working-class town. Everyone knows Detroit for its car plants, but for every one of those is a much larger group of supplier companies that employ many thousands. Like Cleveland, Detroit has had an impressive bunch of new-home construction (townhomes and condos mostly) built close to downtown in the past few years. A dedicated group of business executives, somewhat similar to what we once had here in Cleveland Tomorrow, works to renew the city. Compuware recently built an impressive downtown headquarters, and Dan Gilbert is in the midst of moving his corporate headquarters there, a development I’m sure Mayor Jackson would love to have here. I hope the Ilitches succeed and Detroit gets another shot in the arm. It would be great for our Great Lakes region. ■

THE BIG ISSUE Do you think unemployment benefits should be extended beyond 100 weeks for those unable to find work in that amount of time?

leveland Metropolitan School District CEO Eugene Sanders is striving to improve the fortunes of the city’s public schools, but we’ve long contended that there also is a place for quality charter schools as alternatives for students and parents in the district. Cleveland-based iron ore giant Cliffs Natural Resources Inc. apparently shares that belief, as it pledged $1 million to charter school operator E Prep Schools to help finance the expansion of its elementary school building on East 36th Street in Cleveland. The gift from Cliffs is the largest in E Prep’s history and is an affirmation of the vital role first-class charter schools can play in the lives of Cleveland’s youth. We hope other companies with vested interests here will consider Cliffs’ example.

THOMAS JONES

MEL MIKULA

BRIAN POLIS

KATHY SPANG

Parma Heights

Rocky River

Cleveland

Willoughby

I’ve been a carpenter for 30 years. I go to job sites ... trying to find work and nobody’s hiring. I paid into unemployment for over 30 years, so yes, I think it should be extended.

I would say no. I know the economy’s bad, but I’d like to think that within that time they would be able to find something at least.

Yes. There’s a disconnect between people who are looking for jobs and maybe the right way to market themselves, the employers they need to be looking at.

So many people have been out of work. Not weeks, months. It’s like turning into years. Yeah, I think some people need it. I mean, I don’t know what the solution is.

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

20100823-NEWS--9-NAT-CCI-CL_--

8/19/2010

2:29 PM

Page 1

AUGUST 23-29, 2010

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

SageQuest: Company aiming for No. 1 continued from PAGE 3

The acquisition gives the combined company a broader range of products, Mr. Travers said. FleetMatics, like SageQuest, is a developer of fleet management software, but its products are geared toward fleets with fewer than 50 vehicles. SageQuest, by contrast, has shifted its focus toward larger fleets over the past two years, he said. The two companies also should be able to help each other with marketing, product development and data processing. Mr. Travers noted that SageQuest’s web-based “Mobile Control” software eventually will run on FleetMatics’ network, which includes a data center in Dublin and as well as a $4 million data center the company is building in Colorado. FleetMatics, without SageQuest, employs more than 200, including 140 in the United States. Mr. Travers declined to give revenue figures but said SageQuest has 35,000 vehicles on its software system, bringing the number of vehicles using the combined company’s systems to more than 160,000.

By that figure, the new FleetMatics is the second-biggest provider of fleet management software to the local fleets market, which excludes fleets intended to travel long distances. The combined company’s goal is to surpass the company in first place, Trimble Navigation Ltd. of Sunnyvale, Calif., in the second half of 2010, Mr. Travers said. Dennis Abrahams, who was both president and CEO of SageQuest, will retain the title of president, Mr. Travers said. Mr. Abrahams was out of the office last week, but SageQuest marketing communications manager Kris Barnette said the two companies have “complementary strengths.”

Satisfied investors Mr. Abrahams and chief financial officer David Lowman came to SageQuest in 2003 to commercialize what was then a radio-based fleet tracking system. Instead, they refocused the company on developing a GPS-based system. Since then, SageQuest has received millions of dollars in financing from Hopewell Ventures LP of Chicago; the Innovation Ohio Loan Fund,

Financing: More selling on tap continued from PAGE 3

companies with non-cyclical end markets that they figure will be best suited to weather future financial storms. “If you’re a big company that is selling into several markets and you’re in markets that are not cyclical, you’re considered less of a risk,” said Bill Ridenour, CEO of Polymer Transactions, a merger-and-acquisition firm for middle-market plastic companies. “It’s a pretty good market for larger companies,” Mr. Ridenour said.

Both sides of the coin Private equity firms benefit from the improved dollar flow in two ways — it allows them to access the money they need to make investments and helps them sell companies in their portfolios because potential buyers are more likely to have access to credit, said John Nestor, CEO of Kirtland Capital Partners in Beachwood. “We’ve all, because of the economy, had to hold back on (selling) some very good companies — and now we’re seeing good earnings and we’re able to divest,” he said. Much of that selling has yet to take place, Mr. Nestor said, and Kirtland has yet to pull the trigger on a sale this summer. In the meantime, it’s buying and is about to announce an acquisition, he said. Steve Rosen, managing partner of Resilience Capital Partners in Beachwood, said his firm has three

D D D D D

of its portfolio companies now on the market for sale. The companies have improved their performance over the last two years and, with capital flowing again, it’s an opportune time to sell, Mr. Rosen said. “I think you’ll find more (private equity firms) are in a selling mode, now that credit is available for the first time in two years,” Mr. Rosen said. “Private equity firms are selling to other private equity firms and the strategic buyers have capital.” On the flip side of the coin, Resilience bought Taylor Lumber, which employs 180 people, for an undisclosed sum in July. Mr. Rosen said Taylor had invested in a new production facility to make wood flooring just before the recession hit and needed a financial partner to help it weather the credit crunch. He said the company is already profitable again after losing money last year.

Dry holes Meanwhile, there remain areas of the financial markets where credit has yet to thaw. Many smaller companies still are struggling to secure credit, observers say, and forget about finding someone to loan to a company in distress. “There’s no access to capital still” in the bankruptcy world, said Jean Robertson, a leading bankruptcy attorney at Calfee Halter & Griswold in Cleveland. The debtor-in-possession financing that Chapter 11 companies normally

Aircraft Sales and Acquisitions Pre Buy Planning & Inspection Management Aircraft Refurbishment & Completion Management Aircraft Appraisals and Valuations Aircraft Audit & Asset Recovery CUYAHOGA COUNTY AIRPORT

26380 Curtiss Wright Pkwy., #106, Richmond Hts., OH 44143 216-261-8934 • andy@axiomav.com

which gave the company a $1.5 million loan in 2008; a group of individual “angel” investors in Columbus; and multiple angel investors in Northeast Ohio. Hopewell Ventures invested $2.5 million in SageQuest four years ago, and in 2008 it led a $3.72 million investment round in the firm. That round included money from local founders Gary and Mark Mintz. Hopewell Ventures partner Tom Parkinson described the sale as a “pretty good win.” He lauded the management team at SageQuest for its performance, noting the company’s revenue increased seven-fold since 2005, and that it has started producing consistent profits. The Ohio TechAngels, a group of angel investors in Columbus, invested a total of $200,000 in the company between December 2005 and November 2006, said John Huston, a founding member of the group. He described the sale as “a pleasing, positive exit.” “I think it’s always pleasing when you see a management team lay out a plan and execute as promised,” Mr. Huston said. ■

use to stay afloat while they reorganize is “nonexistent,” Ms. Robertson said, forcing many companies that otherwise might reorganize to liquidate instead. But even in the dour world of bankruptcy, Ms. Robertson said, she’s starting to have a little hope. People at least are listening to requests for DIP financing, “and that’s an improvement,” she said. “Whereas before, they just shut the door and didn’t respond — or literally laughed out loud,” Ms. Robertson said. ■

WEATHERHEAD

EXECUTIVE EDUCATION

Ready for the new season? So are we. Weatherhead Executive Education kicks-off its new season of professional development programs on September 16th. Whether you want to improve the skills of one player or of the whole team, visit our website at http://seminars.case.edu to find out how we can help.

REQUEST OUR COMPLETE CATALOG Call James Van Doren at 216-368-6413 or email seminars@case.edu

20100823-NEWS--10-NAT-CCI-CL_--

8/19/2010

2:09 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

RETAIL / WHOLESALE / COMMERCIAL

1-877-551-TIRE (8473) ww.XTIREX.com 2 locations serving NE Ohio for over 50 years

"Xchange For The Better" COMPLETE AUTOMOTIVE & TRUCK SERVICES FOR ALL CARS, TRUCKS, VANS, SUV, LT/MED TRUCK SPECIALIZING IN TIRES, WHEELS, BRAKE, SUSPENSION, FRONT END, & UNDERCAR SERVICES ALL BRANDS & SIZES, OVER 10,000 TIRES & WHEELS IN STOCK

AUGUST 23-29, 2010

State’s infrastructure still in demand Crowded auction for Schwab assets a positive By DAN SHINGLER dshingler@crain.com

Out-of-state companies still covet Ohio’s infrastructure and construction markets. When the assets of Schwab Industries of Dover, Ohio, were sold out of U.S. Bankruptcy Court in Canton last month, a slew of buyers were particularly interested in its Northeast Ohio concrete operations, said Kevin Mayer and Kenneth Hirsch, two investment bankers with Western Reserve Partners in Cleveland who helped sell the company. “I think it’s a positive signal for Ohio,” Mr. Hirsch said. “There was a tremendous amount of interest in the Ohio assets.” After the investment bankers found a stalking-horse bidder to establish a minimum price for the company, eight other bidders emerged to increase the price and bid against each other at auction, Messrs. Hirsch and Mayer said. Ultimately, Atlanta-based Oldcastle Materials won out, paying $42.5 million for Schwab’s operations in Ohio and

Florida, along with about $2 million in attached liabilities that Oldcastle took in the deal. With its winning bid, Oldcastle bought Schwab’s Medina Supply Co. and Quality Block and Supply Co. in Medina, as well as its Twin Cities Concrete Co. in New Philadelphia, Mr. Mayer said. Those subsidiaries include 12 ready-mix concrete plants, two cement block plants and an aggregate distribution operation, all of which serve Northeast Ohio, he said. Schwab also was big in Florida, but it was the company’s Ohio operations that attracted the most attention from buyers, who were eager to purchase a company that would make them one of the top concrete suppliers in Northeast Ohio, Messrs. Mayer and Hirsch said. “That’s the reason Oldcastle saw it as an important and strategic asset,” Mr. Hirsch said. “Ohio is a pretty good market and it’s been a steady market for Medina Supply.” Were it not for the demise of Florida’s real estate and construction market, Schwab might have survived. Its Ohio operations were

profitable, but it could not withstand the severe downturn in Florida. It’s not that Oldcastle thinks Ohio is about to explode in a surge of residential and commercial construction, but it does believe Ohio will see significant infrastructure projects in the next few years, followed by an eventual rebound in private construction. “It’s clearly a cyclical play. They believe (the state) will recover,” Mr. Hirsch said. Oldcastle apparently was not alone in terms of its confidence in the Buckeye State. “We had strategic interest in Ohio. We had financial interest in Ohio. … We had a lot of interest from buyers who just wanted the Ohio assets,” Mr. Hirsch said. Oldcastle, as a strategic buyer, had an advantage over private equity firms and other financial buyers, because Schwab’s current cash flow would not enable them to borrow enough money to compete with the Oldcastle bid, Messrs. Mayer and Hirsch said. An Oldcastle spokeswoman, Joyce Watson, said in an e-mail statement, “Despite the downturn in the economy, the dedication of Ohio’s work force and the relative stability of the state’s construction industry made the Schwab assets appealing.” ■

GOING PLACES JOB CHANGES EDUCATION

XIM PRODUCTS INC.: Jim Parise to national sales manager.

BALDWIN-WALLACE COLLEGE: Terry Kurtz to director of alumni relations.

MARKETING

ENGINEERING NORTHEAST OHIO REGIONAL SEWER DISTRICT

SMALL BUSINESS ENTERPRISE PROGRAM

FACILITIES MANAGEMENT CONCEPTS INC.: Brian Patton to senior project engineer.

FINANCE FIFTH THIRD BANK, NORTHEASTERN OHIO: W.K. Beard to business banking team leader.

FINANCIAL SERVICE CROWE HORWATH LLP: Bill Brewer to partner. GRANT THORNTON LLP: Patrick Gable to partner; Mike Colagiovanni, Hannah Prengler and Rich Sittema to senior managers.

Here’s the sign you’re looking for.

NIRVANA ANALYTICS: J. Burner Crew to managing partner; Vanquilla Wilks to account manager; Joy Meeker to administrative sales assistant.

HEALTH CARE We’re expanding our small-business opportunities to provide economic beneﬁts for the region and help local companies grow! If your company is a small construction or engineering company or a provider of goods or professional services, we invite you to apply for our SBE program. Learn more about the program:

SBE Certiﬁcation Workshop—Lorain County Thursday, Aug 26 | 3-5 p.m. Spitzer Conference Center, Room 118 Lorain County Community College 1005 Abbe Road North, Elyria, OH 44035 REGISTER & LEARN MORE:

neorsd.org/sbe

ment and compliance.

SOUTHWEST COMMUNITY HEALTH FOUNDATION: Jennifer Rafie to assistant director.

LEGAL DAY KETTERER LTD.: Kathleen Allmon Stoneman to member.

FALLS COMMUNICATIONS: Jennifer Allanson to senior vice president.

Kurtz

Beard

Gable

HITCHCOCK FLEMING & ASSOCIATES INC.: Eric Houser to interactive project manager; Camille Sciria to copywriter; Andrea Teodosio to research and strategy development assistant. HOME TEAM MARKETING: Danny Chalhoub to senior designated school representative.

Colagiovanni Prengler

Sittema

Stoneman

Chalhoub

MEDIA WVIZ/PBS AND 90.3 WCPN IDEASTREAM: Dan Bobkoff to reporter and George Nemeth to senior producer for social engagement, “Changing Gears: Remaking the Manufacturing Belt” project.

NONPROFIT AMERICAN ENDOWMENT FOUNDATION: Laura J. Malone to director of gift planning. LONG TERM CARE OMBUDSMAN: Susan M. Griffin to executive director. SS ROBERT & WILLIAM PARISH: Ellen Ivory to director of development and stewardship; Gail Monroe to pastoral associate; Holly Nixon to secretary.

Allanson

HEALTHCARE INNOVATIVE SOLUTIONS INC.: Terry Klein to marketing communications coordinator. HILLYER GROUP: Christopher J. Carr to operations practice lead.

TECHNOLOGY KNOTICE: David Koch to senior account executive; Dave Lawson to director of mobile engagement. MRI SOFTWARE: John Ensign to general counsel.

GIFFEN & KAMINSKI: Tina Rhodes, Edward A. Proctor and Joseph W. Boatwright IV to attorneys.

UNIVERSITY PARK ALLIANCE: Eric Anthony Johnson to executive director.

SKYCASTERS LLC: Matthew McCann to associate radio frequency engineer.

ROSS, BRITTAIN & SCHONBERG LPA: Michael J. Reidy to associate.

REAL ESTATE

BOARDS

MOHR PARTNERS INC.: Bob Redmond to managing director.

DIRECT MARKETING ASSOCIATION, CLEVELAND CHAPTER: Amanda Vasil to vice president of marketing.

MANUFACTURING AVERY DENNISON: Darrell Hughes to vice president, general manager, Fasson Roll North America. SIFCO INDUSTRIES INC.: David Ornelas to operations manager. TREMCO ROOFING: Margaret Grayson to vice president, manage-

TRANSACTION REALTY: Jim Reitano, Mark Myers and Jason Caccamo to sales associates.

SERVICE

LAKEWOOD CHAMBER OF COMMERCE: Dan Carney to vice chairman.

EXPERIENT: Rick Binford to president, Event Management Services division.

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

20100823-NEWS--11-NAT-CCI-CL_--

8/19/2010

11:50 AM

Page 1

SOME BANKS WANT YOUR FEES. WE’D RATHER HAVE YOUR BUSINESS. HUNTINGTON FREE BUSINESS CHECKING

Finding the right checking account for a small business can be a challenge. You can opt for free checking and be treated like an afterthought, or pay a premium for services you don’t use. Then there’s Huntington. All the services you need with award-winning customer support – that’s what our Free Business Checking offers. It’s what you’d expect from the #1 SBA lender.

See what we can do for you by visiting huntington.com or calling 1-800-480-2001. Huntington Free Business Checking is limited to 200 transactions and $5,000 in-branch cash deposits per month, then excess transaction and cash deposit transaction fees apply. A “transaction” is any combination of checks paid, deposit tickets, deposited checks and ACH credits and debits. Award claim based on 2009 Business Banking Study. All excellence award selections were based on studies conducted by Greenwich Associates, a leading worldwide strategic consulting and research ﬁrm specializing in ﬁnancial services. Huntington is the #1 SBA 7(a) lender in the region made up of Indiana, Kentucky, Ohio, Michigan, West Virginia and Western PA. Source: U.S. SBA from October 1, 2007, through June 30, 2010. Member FDIC. B® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2010 Huntington Bancshares Incorporated.

20100823-NEWS--12-NAT-CCI-CL_--

8/20/2010

11:04 AM

Page 1

20100823-NEWS--13-NAT-CCI-CL_--

8/19/2010

11:51 AM

Page 1

CRAIN’S CLEVELAND BUSINESS

AUGUST 23 - 29, 2010

INSIDE

14 HOSPITALITY MANAGEMENT PROGRAMS EXPAND.

EVENT PLANNING RECIPE FOR CROWD CONTROL From food allergies to customized dishes, large groups cook up big challenges for chefs By KATHY AMES CARR kcarr@crain.com

en Bebenroth’s culinary creations look like they have been formed from a mold when they are served to guests at a catered event — at least that’s the goal. The Spice of Life Catering Co. chef says he puts careful consideration into each dish’s preparation and planning, and provides the same level of attentiveness to guests regardless of the number of attendees or the special needs involved. “We have requests for dietary restrictions all the time,” said Mr. Bebenroth, who serves functions as varied as fine dining on rooftops to weddings. “We set our menu up for success; we don’t put things into our menu that put us in a bind.” Chefs like Mr. Bebenroth who cater to large groups know all too well the challenges that a roomful of 400 can serve up versus an intimate table of four. They must delicately balance guests’ dietary needs while serving under intense deadlines — all while maintaining each dish’s integrity and quality. So how do they do it? It would be a lot for anyone to have on their plate, but for Northeast Ohio’s kitchen masters, it’s all just another day on the job. See CATER Page 15

MICHAEL SAWYER

Cleveland-based Spice of Life Catering Co. sous chef Ryan Bennett (left) and chef Ben Bebenroth plate a dish for a dinner taking place outdoors.

Cleveland’s pitch to land events poised to gain strength High-profile projects may give boost as marketers compete to bring large-scale gatherings to city By JOHN BOOTH clbfreelancer@crain.com

leveland’s got a lot going on in the way of events and gatherings the next few years, from the 2011 NCAA Women’s Gymnastics Championships to the Gay Games in 2014 to the possibility of the 2012 Democratic National Convention for which the city recently

was named a location finalist. Such high-profile goings-on don’t just land here by the throw of a dart: They’re the result of civic groups like Positively Cleveland, local hotel operators and the team at the Greater Cleveland Sports Commission collectively selling the city yearround, pitching its potential to groups large and small and taking on similar efforts from other cities. Outgoing Positively Cleveland

president Dennis Roche has spent seven years leading the city’s convention and visitors bureau, and he led the Chamber of Commerce and the Greater Cleveland Growth Association before that. He’s seen several cycles of highs and lows, from a promotional standpoint, and says right now, signs point to a big upswing in terms of marketability. He compares the potential for the next few years to the 1990s, when high-profile projects like the Gateway District and the Rock and Roll Hall of Fame and Museum project made it easy to call attention to the city and the region. A new conven-

tion center — he says the existing facility “has been our biggest liability for years” — and the voter-approved casino are game changers in Mr. Roche’s estimation. “I think it remakes the whole industry,” he said. “The convention center is going to be transformative.” Earlier this summer, Democratic National Committee chairman Tim Kaine announced that Cleveland is a finalist in the running to host the 2012 Democratic National Convention, along with Charlotte, Minneapolis and St. Louis. Unlike 2006, when the Republican National Committee was

considering Cleveland for its 2008 convention, this summer’s political push was low key and all but unnoticed, with the exception of a public effort spearheaded by U.S. Rep. Dennis Kucinich. Positively Cleveland officials deferred questions on the September 2012 DNC gathering to Mayor Frank Jackson’s chief of government affairs, Valarie McCall, who handled the pitch. Ms. McCall was out of the country and unavailable to comment.

Selling what you have Even without a top-notch See FUTURE Page 15

20100823-NEWS--14-NAT-CCI-CL_--

8/19/2010

2:29 PM

Page 1

14 CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

EVENT PLANNING

Stadiums designed for many uses beyond sports By JOEL HAMMOND jmhammond@crain.com

n a perfect world, the Lake Erie Crushers would play each of their 96 games at All Pro Freight Stadium, their 2-year-old park in Avon. Since they can’t, Crushers general manager Ryan Gates hopes to spread the word that the stadium is open for business when the Crushers hit the road — and he hopes a recent highprofile concert does the trick. The Crushers played host on July 15 to the first of what Mr. Gates hopes is many concerts — featuring country megastar Alan Jackson, Joe Nichols and Brother Trouble — drawing 7,000 after an extra 5,000 seats were placed on the field. “From Day One, we wanted to show the community and the region that this stadium was more than just baseball,” Mr. Gates said. “It could be a destination; concerts always had been on the wish list. “We hope to have many of these; a big name for the first one definitely helps. People held back, I think, because they thought it was going to be a small stage. We had a big stage and multiple video screens.” The Crushers also have played host to a Cleveland Clinic event and a

PHOTO PROVIDED

Classic Park in Eastlake not only is the venue for Lake County Captains games — it plays host to other events, including this concert last summer that featured Bob Dylan, Willie Nelson and John Mellencamp. launch event last fall for Chevrolet dealers to sneak a peek at the automaker’s new Equinox, while this fall the stadium will hold clambakes and an Oktoberfest event. This week, a car show promoting Tom Ganley for Congress will hit the park. College, high school and youth baseball teams also use the field from April through October, and in the offseason, the stadium’s suites are used for company meetings.

At Classic Park in Eastlake, home of the Indians’ Class A affiliate Lake County Captains, one concert has led to more. In 2005, the Captains hooked up with Chicago-based promoter Jam Productions to bring in Bob Dylan and Willie Nelson; in 2007, Def Leppard and Bryan Adams played jointly, and later the Captains landed Live, Counting Crows and Collective Soul for one concert. Messrs. Dylan and Nelson, along

with John Mellencamp, played last summer at Classic Park, which seats 6,150 fans for baseball and can hold up to 12,000 for concerts. This year, the Captains independently connected with pianist Jim Brickman to bring the Jim Brickman Summer MusicFest to Classic Park earlier this month; on Sept. 3, Alice Cooper will play in Eastlake. Captains general manager Brad Seymour’s priorities fall in line with the Crushers’: Fill the stadium. “We need to utilize the building as much as we can during the warm weather months, and it brings a different demographic to the facility,” Mr. Seymour said. The Captains also have brought in corporations, which may use the field for softball or baseball and later use the stadium’s meeting rooms. High school and college teams also use Classic Park for games. Plus, Mr. Seymour said, the concerts serve as another marketing tool for the baseball team. “These are different demographics coming to these concerts,” he said. “They become return customers, or so we hope. These aren’t just Eastlake or East Side events; concert fans are coming from all over Northeast Ohio.” Jam Productions in 2004 began these minor-league stadium tours

with 22 Dylan/Nelson shows. The next year, it was 30; in 2006, Def Leppard and Bryan Adams were the company’s main attractions for their tour, which now has expanded to other outdoor sites, such as ski resorts and botanical gardens, said vice president Don Sullivan. The company targets these settings because of their family friendliness and it keeps with a theme: At all shows featuring Mr. Dylan, for instance, fans age 14 and younger get in free. Yet these aren’t simple productions. From a promoter’s perspective, Mr. Sullivan said, there’s great risk. “Our goal is to not interrupt baseball, and it’s all about protecting that field,” Mr. Sullivan said. “We’re bringing in staging, generators, plywood and portable bathrooms, all of which is in place at other facilities. We have to make sure the groundskeeper is happy.” From teams’ perspectives, there’s great work to be done. Messrs. Gates and Seymour told tales of 48 hours of work to restore their stadiums to baseball-readiness. “After a Friday game, we worked through the night to get the stage set up, then worked through Saturday night and Sunday morning to tear it all down,” Mr. Seymour said. ■

Schools grow hospitality programs Accommodating all guests’ needs By SHANNON MORTLAND

s the casino and Medical Mart projects become visible on the horizon, local colleges are preparing people for an expected onslaught of new jobs in hospitality management. Cuyahoga, Lorain County and Lakeland community colleges, as well as Kent State University and the University of Akron, already offer hospitality management programs, and a number have plans to expand. “We’re initially trying to accommodate the demand that is already there,” said Michael Schoop, president of Tri-C’s Metropolitan Campus. “Cleveland is developing a national reputation for the culinary arts and is becoming a tourist destination.” Alongside the many locally owned restaurants downtown, tourists soon will be able to see where some of the workers in those establishments are trained. Tri-C in October will open a 25,000-square-foot Hospitality Management Center in the former May Co. building on Public Square. Tri-C received $7 million in state funding to boost its hospitality management training, and it chose to open the downtown location and to renovate the space used for hospitality management classes at its Highland Hills campus, said Al Moran, Tri-C’s vice president for marketing and communications. A video wall will enable those passing by 180 Euclid Ave. to view live and taped classes, Dr. Schoop said. The new spaces for hospitality management already have proven to be popular. As of Aug. 10, 310 students had enrolled in the hospitality management program, which is 54% higher than the approximately 200 enrolled in that program in the 2009-2010 school year, Mr. Moran said. With several weeks left before the start of classes on Aug. 30, Tri-C expects enrollment in hospitality management to continue to grow, he said.

A full menu Students have an increasing amount of options for hospitality management education.

Akron is adding a bachelor’s degree in organizational supervision in the fall, said Stan Silverman, dean of the University of Akron’s Summit College, which primarily serves adults returning to school. The new bachelor’s degree will appeal to those who already have obtained associate’s degrees in hospitality management, he said. Akron also is creating a bachelor’s degree in hospitality management, which likely will launch next year after it is fully designed and receives approval from the state, he said. The university is deciding whether the major should focus on the culinary arts, restaurant management, hotel and lodging management or hotel marketing and sales, which are the four concentration areas under its associate’s degree in hospitality management, he said. In making that decision, Mr. Silverman said the university must ask: “What impact do the casinos have (and) once students get their degree, are there positions for them?” Kent State is permanently adding a course on casino management to its bachelor’s degree program in hospitality management, which currently has 250 students, said Barbara Scheule, an associate professor and coordinator of the hospitality management program. The course was born out of a personal interest of a few professors but it has been popular, she said. Casino management also makes sense to teach because Ohio soon will join the surrounding states in housing them, she said. For its part, LCCC is adding a culinary arts program in the fall, said Marcia Ballinger, vice president of strategic and institutional development. “We think there is a demand for it, and it is an attractive job market, not only with restaurants but with regard to tourism,” she said. Mr. Silverman said part of the fascination with hospitality management is likely due to the upcoming casino and Medical Mart projects, an array of locally owned restaurants in Northeast Ohio and cooking shows on TV. “They see these shows on TV and (hospitality management programs) become very popular, but people (also) get good jobs,” he said. ■

an integral part of event coordination By AMY ANN STOESSEL astoessel@crain.com

lot of it is just common sense. It’s been 20 years since the Americans with Disabilities Act was enacted, and while there has been progress in terms of making sure proper accommodations are made for people with disabilities, many will say there is work that remains. For event planners, it means taking the time to find out — and think about — what an attendee might need. Sheila Dunn, president and CEO of Easter Seals Northern Ohio, said it all comes down to good customer service. “Instead of looking at people with disabilities, you should be looking at the needs of the general population,” she said. “It’s not extra, it’s just life. … It’s just making sure you cover your bases.” ■ Thomas L. Tobin not only is director of planned and major gifts for the Cleveland Sight Center, he’s a former client of the nonprofit agency who sought assistance after going blind at the age of 21 due to complications from diabetes. “The biggest thing is to overcome the mental barrier that this is insurmountable,” he said of accommodations that might be needed. Nonetheless, Mr. Tobin said there are a couple of things that should be taken into consideration. For example, it’s possible to provide an audio description of what is happening during a presentation, a process that can be facilitated with headphones. Braille and large print can be used (the sight center provides services), or a handout could be sent to an attendee ahead of time. In addition to a verbal description of the facility, a volunteer could walk the person around to give them an orientation. Also, be mindful of where a person is seated; those with low vision, for example, should be sitting in the best location for their needs. “You’ve got to do the basics at the very

least,” Mr. Tobin said. “Make sure their experience is as good as people who can see.” ■ In a roomful of 20 people, it’s safe to say there will be at least one person with some kind of hearing loss, said Michelle L. Burnett, director of clinical services at the Cleveland Hearing & Speech Center. And for those who are experiencing what can be referred to as an “invisible disability,” large-group events can prove to be particularly difficult, Ms. Burnett said. “Each person who’s deaf is a little different,” she said. “The important thing is that you ask the person what accommodations they need.” For one, a planner should be sure to access any services that someone who is deaf or hard of hearing needs, such as a sign-language interpreter (available through the hearing and speech center). Also important to note is that those who are hard of hearing may read lips, so where someone is sitting in proximity to a speaker can be critical. Ms. Burnett said a room’s setup should be considered: Sound can be lost with high ceilings and plush carpet. A planner should be aware of outside noise, such as the sound of a fountain or the clanking of dishes. A good sound system should be used, and a microphone should be available if there is going to be audience participation. “It’s always safest to ask and do what you can to accommodate them,” she said. ■ Frank Anderson, government relations director for the Paralyzed Veterans of America, Buckeye Chapter, stressed the importance of fully evaluating a site prior to hosting an event. Such an assessment should include a look at doors, elevators, the facility’s layout, both the men’s and women’s restrooms, proximity to public transportation, where stairs are located, parking, and access in and out of the building. “You have to go out to each and every site to see what those challenges are,” Mr. Anderson said. “Take a survey of your facility to see how accessible it is.” ■

20100823-NEWS--15-NAT-CCI-CL_--

8/19/2010

12:06 PM

Page 1

AUGUST 23-29, 2010

WWW.CRAINSCLEVELAND.COM

CRAIN’S CLEVELAND BUSINESS 15

EVENT PLANNING

Cater: Chefs accommodate special diets continued from PAGE 13

More than a request While special meal requests are nothing new to catering companies, local chefs say they find themselves creating more menu alternatives as the number of concerns related to peanuts, wheat and shellfish increase. “There are more vegetarian, vegan and gluten-free options on our menu than you think,” said Kristen Adams, sales and marketing manager for Morton’s The Steakhouse in Cleveland. “And we have a peanut-free menu, but we can’t do kosher.” Food allergies affect 6% to 8 % of children younger than age 3, and about 4% of adults, according to the Mayo Clinic. While the catering industry overall has been proactive in managing guests’ needs, it still needs to be more cognizant of educating not only its kitchen staff but hosts and other support staff about accommodating special dietary requests, said Jerry Edwards, a spokesman for the

National Association of Catering Executives. “The last 10 years there has been a stronger effort and heightened awareness in the catering industry about food allergies and alternative diets,” he said. “We’re still not as strong as we could be.” To guard against consequences tied to food allergies or other dietary restrictions, caterers suggest to their clients before holding an event that they find out whether their guests have special dietary needs. “We suggest to clients that they ask guests on their event invitations whether they have special dietary needs and what they are,” said Molly Coyne, director of sales at Windows on the River. “That way we are prepared.” Executive Caterers at Landerhaven in Mayfield Heights said that it makes every attempt to accommodate those with special diets, but when all else fails, guests are welcome to bring in their own food, said Nick Borelli, marketing director. “We try to be as accommodating as possible,” he said.

Future: City has a lot at stake in planned convention center continued from PAGE 13

convention center at their disposal, the teams who aim at attracting events to Cleveland have adjusted their targeting over the years and built strong relationships with small to mid-size groups as a result. “Going back maybe 20 years, what you would do is put your effort into attracting the big meetings,” Mr. Roche said. “In more recent years, as our convention center offering has sort of atrophied, we’ve gone after more and more small groups. What used to be the task of attracting maybe eight to 10 large conventions a year has now become the chore of attracting a couple hundred smaller meetings.” As it stands, 90% of the gatherings brought in by the Positively Cleveland convention sales team occur someplace other than the existing convention center. The goal once the new convention center is built is to keep those events while bringing in previously unattainable business. “It’s definitely difficult to retain the repeat business because of all the competition that’s out there,” said Positively Cleveland director of sales Dan Williams. “But we’ve been able to retain some phenomenal groups.” He points, for example, to the Christian Congregation of Jehovah’s Witnesses, which brings 8,000 to 9,000 people to town for each of its four weekends at the Wolstein Center. The American Chemical Society and the North American Material Handling Logistics Tradeshow are others that have returned to Cleveland regularly. As to where the International Exposition Center comes into play, Mr. Roche said two convention centers are better than one. “The convention center downtown is going to be an educational, commercial kind of facility,” he said.

“It’s people-oriented. The I-X Center is for large industrial shows and consumer shows, and we believe there’s room in this market for both.” And there’s room for cooperation. John Leinen, division corporate director of sales for Sage Hospitality Resources, which manages the Crowne Plaza at East 6th Street and St. Clair Avenue, says while downtown hotels compete for single-site gatherings, a community effort takes hold when a bigger event is at stake. For instance, the hotels will work with Positively Cleveland to establish an attractive pricing plan for room blocks. “It takes a village to bring in the large events,” Mr. Leinen said, “and you have to have that collaborative effort, because other cities do as well.”

Game on Robert Marron, vice president of sports development at the Greater Cleveland Sports Commission, says in addition to promoting downtown Cleveland’s affordability and proximity to attractions, extra effort plays a huge role in bringing in the business. “You’re selling a vision for what you can provide,” Mr. Marron said. “Not only to that group and their athletes, but to their friends and families and sponsors. “ Mr. Marron points to Cleveland’s inclusion in the NCAA Championship Cities pilot program established in 2008. Thirty-four cities vied for six spots, which went to Cleveland, St. Louis, Indianapolis, St. Louis, San Antonio, San Diego and Cary, N.C. Each city is home to several NCAA Division I, II and III championships. “It’s also about the city’s ability to rally around events,” Mr. Marron said. “People volunteering, people giving their time, people willing to provide support; Clevelanders have that Midwestern sense of pride.” ■

Northeast Ohio or bust Meanwhile, some operations have developed their entire menu around using only locally sourced food or creating freshly made dishes, which add an extra layer of detail and precision into the execution of serving anywhere from 10 guests to several thousand. “We have a lot more steps and a hands-on approach,” Spice of Life’s Mr. Bebenroth said. “It causes us to overanalyze the timeline and production. Our strongest point is pushing cooking to the last minute.” Although some items are prepared in advance, such as cookie dough or vinaigrette, the kitchen staff is prepared to plate in less than 14 minutes dinner for a party of about 480. Similarly, Windows on the River prepares all its menu items — except for its bakery — from scratch and

tries to use locally sourced ingredients as much as possible. Catering companies, however, say their menus aren’t always as malleable as a restaurant since their business is geared toward serving large parties. “The catering industry has more of a challenge to serving local and fresh food because of the amount of people they serve,” said Mr. Edwards, who also owns Baltimore, Md.-based Chef’s Expressions, a catering company. “Restaurants don’t have that challenge as much. Caterers have to plan for events months in advance, and they may not know what’s in season a year out.”

Crunching numbers As if chefs don’t have enough to worry about in ensuring that menu items are not only appropriate but safe, they also must make sure the operation is set up to deliver quality dishes. Executive Caterers said it is accustomed to serving large events — the firm caters 20 events per year for 1,000-plus guests — and it makes

certain it has on hand as many local ingredients as possible, particularly during health care-centered events. “We don’t make something, freeze it and thaw it out,” Mr. Borelli said. “We have tents and a mobile kitchen, and we do everything in stages.” Dim and Den Sum, a mobile food truck that launched this spring, said it comfortably can serve about 2,000 people, although some events this year have garnered a much larger audience. “We prepped and served 15,000 tacos at a burger fest in Akron,” said Chris Hodgson, chef and co-founder. On a smaller level, Dim and Den Sum will customize its clients’ menus, but with a few twists. “We ask, ‘What’s your favorite food?’ and reinvent it,” Mr. Hodgson said. But caterers also must be mindful of their capabilities within their budgets, something which is particularly challenging in a tough economy. “Chefs are handcuffed with labor costs,” said Mr. Edwards of the National Association of Catering Executives. “If you’re trying to keep within budget, you have to cut back in labor. Therefore, not as many chefs are plating, and things taste drier because the food’s been sitting. “Food only peaks once,” he said. ■

20100823-NEWS--16-NAT-CCI-CL_--

8/19/2010

2:50 PM

Page 1

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

LARGEST NURSING HOMES RANKED BY NUMBER OF LICENSED BEDS(1)

Daily room rate Name Address Rank Phone/web

Number of Number of licensed beds RNs

Number of LPNs

Total number of staff

Profit status

High

Low

Year founded

Ownership

Administrator

Menorah Park Center for Senior Living 27100 Cedar Road, Beachwood 44122 (216) 831-6500/www.menorahpark.org

360

599

nonprofit

$285

1906

Board of trustees

Steven Raichilson

Park East Care and Rehabilitation(2) 3800 Park East Drive, Beachwood 44122 (216) 831-4303/www.sunbridgehealthcare.com

273

250

profit

$385

$250

1990

SunBridge Healthcare Corp.

Bernard Centa

Montefiore One David N. Myers Parkway, Beachwood 44122 (216) 360-9080/www.montefiorecare.org

268

370

nonprofit

$370

$276

1882

Board of directors

Lauren B. Rock

West Bay Care and Rehabilitation 27601 Westchester Parkway, Westlake 44145 (440) 871-5900/www.sunbridgehealthcare.com

258

300

profit

$242

$201

1980

SunBridge Healthcare Corp.

Toni Colon

St. Augustine Health Campus 7801 Detroit Ave., Cleveland 44102 (216) 634-7400/www.staugustinemanor.org

248

346

nonprofit

$218

$198

1969

Catholic Charities

Patrick Gareau

Pleasant Lake Villa 7260 Ridge Road, Parma 44129 (440) 842-2273/www.lhshealth.com

229

245

profit

$300

$220

1987

Legacy Health Services

James J. Taylor

Broadview Multi-Care Center 5520 Broadview Road, Parma 44134 (216) 749-4010/www.broadviewmulticare.com

218

176

profit

$270

$195

1965

Harold Shachter

Isaac Lifschutz

Parkside Villa 7040 Hepburn Road, Middleburg Heights 44130 (440) 260-7626/www.lhshealth.com

211

210

profit

$349

$220

2002

Middleburg Legacy Place LLC

Amy Kraynak

Crandall Medical Center 800 S. 15th St., Sebring 44672 (330) 938-6126/www.copelandoaks.com

198

nonprofit

$223

1967

Copeland Oaks

Robert Cameron

Greenbrier Senior Living Community 6455 Pearl Road, Parma Heights 44130 (440) 888-5900/www.communicarehealth.com

194

profit

$206

$202

1990

Communicare Health Services

Jill Burke

Lutheran Home at Concord Reserve 2116 Dover Center Road, Westlake 44145 (440) 871-0090/www.concordreserve.org

192

280

nonprofit

$266

$225

1932

Lutheran Partners for Senior Life Services

Jean Hollenbeck

Wickliffe Country Place 1919 Bishop Road, Wickliffe 44092 (440) 944-9400/www.lhshealth.com

189

194

profit

$210

1978

3g Operating Co.

Deborah Farris

ARE YOU READY FOR MDS 3.0 & RUGs IV? Denise Gadomski 216.274.6514 denise.gadomski@plantemoran.com

Pleasantview Care Center 7377 Ridge Road, Parma 44129 (440) 845-0200/www.pleasantview-care-center.com

187

162

profit

$325

$225

1970

Ridge Pleasant Valley Inc.

David Farkas

Eliza Bryant Village 7201 Wade Park Ave., Cleveland 44103 (216) 361-6141/www.elizabryant.org

175

205

nonprofit

$200

1896

Eliza Bryant Village Corp.

Harvey M. Shankman

Jennings Center for Older Adults 10204 Granger Road, Garfield Heights 44125 (216) 581-2900/www.jenningscenter.org

174

224

nonprofit

$284

1942

Sisters of the Holy Spirit

Allison Q. Salopeck

Wesleyan Senior Living 807 West Ave., Elyria 44035 (440) 284-9000/www.villageliving.com

174

288

nonprofit

$279

$249

1896

Wesleyan Senior Living Neil Jay Bright

Hickory Ridge Nursing & Rehabilitation 721 Hickory St., Akron 44303 (330) 762-6486/www.provider-services.net

170

175

profit

$195

$175

The Greens Nursing & Rehab Center 1575 Brainard Road, Lyndhurst 44124 (440) 460-1000/www.kindredhealthcare.com

160

214

profit

$265

$235

The Heights Care and Rehabilitation Center 2801 E. Royalton Road, Broadview Heights 44147 (440) 526-4770/www.sunbridgehealthcare.com

158

124

profit

Mount Alverna Village 6765 State Road, Parma 44134 (440) 843-7800/www.mountalvernavillage.com

153

nonprofit

Center Ridge Health Campus 38600 Center Ridge Road, North Ridgeville 44039 (440) 327-1295/www.crnh.net

150

Eliza Jennings 10603 Detroit Ave., Cleveland 44102 (216) 226-0282/www.elizajennings.org

150

Slovene Home for the Aged 18621 Neff Road, Cleveland 44119 (216) 486-0268/www.slovenehome.org

150

Walton Manor Healthcare Center 19859 Alexander Road, Walton Hills 44146 (440) 439-4433/www.saberhealth.com

150

Shepherd of the Valley - Boardman 7148 West Blvd., Boardman 44512 (330) 726-9061/www.shepherdofthevalley.com

MetroHealth Skilled Nursing at Old Brooklyn 4229 Pearl Road, Cleveland 44109 (216) 957-2604/www.metrohealth.org

Provider Services Inc.

Kim Coleridge

1996

Kindred Healthcare Inc.

Jennifer Fess

1985

SunBridge Healthcare Corp.

Karen Williams

$284

$263

1953

Franciscan Sisters of Patrick M. Welsh Chicago Service Corp.

profit

$215

$205

1986

John T. O'Neill

David T. O'Neill

194

nonprofit

1888

Eliza Jennings Senior Care Network

Danielle Maur

127

nonprofit

$220

$200

1962

Slovene Home for the Aged

Jeffrey S. Sas

210

profit

$200

$184

1987

Saber Management Corp.

Kimberly M. Corrigan

149

nonprofit

$217

$202

1993

Shepherd of the Valley Lutheran Retirement Richard Limongi Services

144

128

nonprofit

$299

2008

MetroHealth

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. (1) Information as of June 1, 2010. (2) Formerly Harborside Healthcare Beachwood.

Yuvette Bozman

RESEARCHED BY Deborah W. Hillyer

20100823-NEWS--17-NAT-CCI-CL_--

8/20/2010

1:50 PM

Page 1

AUGUST 23-29, 2010

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

Lab: Facility eyes work in wind continued from PAGE 1

“If you did this for a few days,” said Dario Gasparini, professor of civil engineering at CWRU, “you would get a crack.” Dr. Gasparini started laying plans to build the lab — technically called the Richard ’39 and Opal Vanderhoof Infrastructure Research and Education Facility — 20 years ago, and he began raising money for it 12 years ago. The $4 million project got its big break four years ago when the university secured the second of two, $1 million gifts from Mr. Vanderhoof, who retired in 1982 as director of the Metropolitan Sewer District of Greater Cincinnati. Most of the rest of the money came from other civil engineering alumni and a gift from Dow Chemical Co. of Midland, Mich. The final product looks like it would scare all but the sturdiest of structures. The “strong floor,” for instance, is made of 18-inch-thick concrete, which forms the ceiling of a tunnel made of even more concrete. That formation gives the floor added strength while also letting researchers access the machines and pipes that provide power to the pistons. The L-shaped strong wall is built the same way. The wall and floor need to be super strong to provide a counterweight to

Engineer Neil Harnar tests an earthquake simulator with a model of a building at Case Western Reserve University’s Richard ’39 and Opal Vanderhoof Infrastructure Research and Education Facility. JANET CENTURY

Pay: Personal income levels declined continued from PAGE 1

that 55% of the respondents that had lowered pay in 2009 planned to restore their employees’ previous wage or salary levels this year. However, of those surveyed, 38% didn’t plan to reinstate prior wages or salaries, and 7% said they planned to reinstate docked pay for some employees. The impact on employees of last year’s pay cuts can be seen in the 2009 personal income data released two weeks ago by the U.S. Commerce Department’s Bureau of Economic Analysis. Instead of income levels rising as in past years, the bureau reported that the Cleveland-Elyria-Mentor metropolitan statistical area registered a 1.9% decline last year in per-capita personal income, to $39,348 from $40,118 in 2008. Likewise, in the Akron area, per-capita income was down 1.7%, to $37,247 last year from $37,893 in 2008. Those percentage declines actually are better than for the nation as a whole, as metropolitan areas in the aggregate saw per-capita income slide 2.8%. There are indications that those numbers should improve in 2010.

Paychecks bounce back For example, Planned Financial Services LLC, a small consulting company in Brecksville, cut its employees paychecks by either 10% or 20% in 2009, but it restored pay at the start of 2010. President Frank Fantozzi cut 75% of his own salary and said he’s still making 25% less than what he used to make because he has used the money to add two new employees. “Companies have done better in general,” Mr. Fantozzi said. However, every industry is a little different, Mr. Fantozzi said, and some companies “are hoarding cash and afraid to deploy it.” Solon-based Keithley Instruments Inc., a maker of electrical test instruments, announced a 10% pay cut for most employees in late 2008 as part of

a cost-reduction initiative after a widespread decline in the electronics industry. The company also laid off nearly 100 of its 700 global employees for immediate cost savings — none of whom have been reinstated. But as of the beginning of 2010, Keithley reinstated salaries and started matching its employees’ 401(k) contributions again, said Keithley chief financial officer Mark Plush. “The electronics industry has rebounded quite nicely,” Mr. Plush said. Cleveland-based Eaton Corp., one of the largest manufacturing companies in Northeast Ohio, required its employees to take four weeks off without pay in 2009, but no furloughs have been announced for 2010 and none are anticipated, said Eaton spokeswoman Kelly Jasko. Last month, the company also started contributing to its employees’ retirement plans again. Due to declining government and private support, Western Reserve Public Media temporarily cut its 24 employees to a 36-hour work week in March 2009, essentially cutting their paychecks by 10%. The nonprofit, however, restored its work week only four months later despite the financial turmoil brought on by a decrease in financial support, said Lisa Martinez, Western Reserve’s vice president of marketing and development.

“There was a need for productivity, a concern about staff members and all of the things you would expect,” Ms. Martinez said. “We have a small staff and a lot work to do. The quicker we could reinstate people to 40-hour weeks, the better.”

Caution sign The situation, however, is still uncertain at John Carroll University. The university announced its 372 non-faculty employees would be required to take 10 unpaid furlough days through its last fiscal year, which was the equivalent of a 4% pay cut. John Carroll continued its furlough program in June, and university spokeswoman Tonya StrongCharles said in an e-mail that it was “too soon to tell if we can roll back the work schedule reduction program, which we are committed to doing as soon as possible.” Mark Votruba, an associate professor of economics at Case Western Reserve University, said that in earlier recessions, there was a tendency for companies and organizations to lay off workers rather than cut wages or trim back hours. But in this recession, Mr. Votruba said, employers that expect to bounce back have been resorting to cutting pay in order to avoid the need to rebuild their staffs as the economic situation improves.

SALT • SALT • SALT • Water Softener • Industrial • Ice Melt • Food Call For Pricing!! Minimum Delivery: 1Pallet

1-800-547-1538 Salt Distributors Since 1966

the extreme force that the hydraulic system can produce, which tops out at 1 million pounds for certain tests. The lab also features a moving platform that can recreate the conditions of an earthquake.

Anticipating a need The need for infrastructure testing is great, said Xiangwu “David” Zeng, chairman of the Department of Civil Engineering at CWRU. The American Society of Civil Engineers gave the nation’s infrastructure a “D” average on its 2009 Report Card on America’s Infrastructure, said Dr. Zeng, who leads the lab alongside Dr. Gasparini and Arthur Huckelbridge, associate professor of civil engineering. The nation’s highways, bridges, sewer systems and power systems are getting old, Dr. Zeng said. “They are reaching a stage where it will cost a lot of money to fix them,” he said. The infrastructure lab also expects to be able to capitalize on the spread of wind power. As part of a Cuyahoga County-led effort to put wind turbines in Lake Erie, the university might use the lab to test a structure that it will put in the lake to gather data on the forces that lake ice will put on the turbines’ foundations. It also

“In a setting where the labor market is weak, the firm doesn’t have to be worried as much about other firms stealing away their talent,”

might use the lab to test the final design of the foundations themselves. The lab and the researchers who run it are great assets for the wind power project, said Lorry Wagner, president of the Lake Erie Energy Development Corp., a nonprofit formed by the task force to lead the effort. “There’s already that credibility and capability,” Dr. Wagner said.

Doing a job for GE The lab is working on one wind project now. Next to the cell phone tower, a hydraulic piston is set up to repeatedly apply 150,000 pounds of pressure to the top of a 12-foot-tall slab of concrete bisected by a piece of steel. That concrete represents a slice of an onshore wind turbine’s foundation. General Electric Co. has the lab testing the strength of the connection between the concrete and the steel. The lab also will test the strength of a covered bridge that the National Park Service is building to match a bridge in New Hampshire that arsonists destroyed. Students are using the lab, too, Dr. Gasparini said, noting that undergraduates have been studying how a wobbly tower moves when the earthquake platform shakes. ■

Mr. Votruba said. “Their ability to keep wages low is stronger. When the general market picks up again, that reverses itself.” ■

So much is changing around us...Is it time for YOU to make a change? It’s time to consider if you’re getting the service you need…the service you deserve from your CPA firm. Maloney + Novotny, one of Ohio’s largest and fastest growing certified public accounting firms, will take the time to fully understand your needs. In 2010, we celebrate 80 years of offering expertise, tools, resources and exceptional service clients deserve.

It’s time.

+ Cleveland 216.363.0100 Canton 330.966.9400 Elyria 440.323.3200 maloneynovotny.com

20100823-NEWS--18-NAT-CCI-CL_--

8/20/2010

3:19 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

AUGUST 23-29, 2010

Publisher Dix moves into old Kent auto dealership By STAN BULLARD sbullard@crain.com

Dix Communications paid $840,000 for the former Bruce Caudill Mazda dealership at 1050 W. Main St., about 1.5 miles east of downtown Kent. The dealership closed in 2009 after Montrose Auto Group acquired the Mazda franchise. Dix Communications plans to expand the building and invest substantially in renovating it, according to Gordon Charles “Chuck” Dix, president of Dix Communications. He said cost estimates are not yet available.

A former auto dealership in Kent is about to become a new online marketing headquarters for familyowned Dix Communications, which also will use the location to house other operations of the company that publishes the Record-Courier daily newspaper in Ravenna and a chain of 10 weekly newspapers covering Summit and Portage counties.

Contact: Phone: Fax: E-mail:

David Dix, president of Dix’s Record Publishing Co., said the company selected the site in part because it serves as a central location for serving its Portage and Summit County circulation areas. In addition, it provides the company with access to more urban areas and to Kent State University’s ready supply of media “up and comers,” Mr. Dix said. Kent State operates a School of Journalism and Mass Communications. Gordon Dix said the former deal-

REAL ESTATE

Genny Donley (216) 771-5172 (216) 694-4264 gdonley@crain.com

AUCTIONS

Liberty Street Commons Wooster, Ohio

Auction Real Estate

ership also will allow the company to “provide a better working environment for our coworkers and to reduce duplicated costs, such as building maintenance and services.” Bound for the new Kent office, David Dix said, are about 60 advertising and editorial employees now housed in the company’s Ravenna office. Its current office in Stow for its weeklies will be closed. The company will retain in Ravenna its printing press with about 15 employees

and a news staff of about four. Gordon Dix said the new location would house Dix’s web division and IT unit as well as a new online marketing operation that will serve its Ohio and Kentucky properties. Its corporate accounting unit will remain in Wooster. Dix Communications’ properties include seven Ohio daily newspapers and the Frankfort State-Journal, which serves Kentucky’s capital city. It also owns seven radio stations. Jennifer Fernandez, a broker at NAI Cummins who had the listing for the building, said the three-acre property includes a 24,852-square-foot office building dating from 1997. ■

Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card

INDUSTRIAL SPACE

Exciting Investment Opportunity! $4,000,000.00 Mixed-Use Redevelopment

CRESCO real estate

Don’t See The Perfect Fit Here? Go To Our NEW Website... www.crescorealestate.com • 216.520.1200

Available Office Space STREETSBORO - 67,030 sf modern crane building on 11.24 acres with 4 truck docks - 4 drive-in doors - 2-5 ton cranes (rails for 20 ton) - upgraded T-8 lighting and 30’-34’ clear height - Simon Caplan, SIOR or Eliot Kijewski CENTRAL LOCATION - 15,246 sf to 59,626 sf - 5 truck docks - 1 drive-in - 19’ ceilings excellent Independence location - Bob Garber, SIOR LEASE - STRONGSVILLE - light industrial - 35,000 divisible - existing docks, office, power and T-5 lighting - single or multi-tenant - 18’ clear - Matt Beesley, SIOR BROOKPARK - 21,500 sf with 1,000 sf office - 3 docks and 1 drive-in - 18’ clear Fred Christie, SIOR 15,000 SF - I-480/71 - power - 2 docks - 1 drive-in - sprinkler - for sale - Armand Aghajanian Available Industrial Space ENGLE ROAD VISIBILITY - 5,340 sf available predominately office w. small warehouse AIRPORT DISTRIBUTION - 211,200 sf available - divisible - 20’-28’ clear - rail - high hazard DK/DI - 9,870 sf warehouse - 4 DK’s/4 DI’s - 16’ clear - Pamela Bertovich sprinklers - 8” floors - foreign trade zone - Joe Barna, SIOR or Fred Christie, SIOR BEST FLEX/R&D BUILDING ON THE MARKET - 99,600 sf facility comprised of 48,000 sf of high 3.54 ACRES - ZONED OFFICE/RESIDENTIAL - along with 8.13 acres zoned residential end office and 51,600 sf of lab/warehouse space - 1 dock - 1 drive-in - excellent access to I-80 available for sale at the corner of Crocker Road and Center Ridge Road in Westlake George Pofok, SIOR or Joe Barna, SIOR and SR 2/I-90 - Kevin Kelly, Fred Christie, SIOR or Ryan Burrows

CROWN CENTRE - I-77 & Rockside Road - single offices to 17,000 sf suites - many ready to move-in - all with great views - access - amenities and parking - Tom West or Rico Pietro, SIOR AKRON MONTROSE - LEASING OPPORTUNITIES - value priced at $18.00/sf - suites available - 1,300-20,000 sf - move-in ready suites - Rico Pietro, SIOR or Tom West WESTLAKE OFFICE BUILDING FOR SALE - investor/user opportunity - attractive medical/general office - 9,436 sf - convenient to I-90 - John Glasstetter, SIOR USER/INVESTOR OPP. IN LAKEWOOD - 5,200 sf office/retail/apt. bldg. on Madison - four, apts. plus two 1st floor office/retail units (1,700 sf total) w. parking for apts. - Ken Anderson or Ryan Burrows SUBLEASE OPPORTUNITY - close to Belden Village Mall - great space - Patrick Reardon, SIOR

For Details, Date & Terms:

www.bambeck.com 2% Broker Participation

Bambeck Auctioneers Inc.

COMMERCIAL SPACE

Call Dave 330.260.0192

2 Court-Ordered

Real Estate Auctions August 26 • 11:00 AM On-Site

2132 Case Pkwy. N., Twinsburg Two Adjoining Office Condos Purchase Separate or Together

Sept. 14 • 11:00 AM On-Site

Fredericksburg, Ohio Bed & Breakfast / Residence on 5 Acres w/ Lake

Holmes County, Amish Country See Web Site For Details

Bambeck Auctioneers Inc. Call Dave 330-260-0192

www.bambeck.com

OFFICE SPACE FOR LEASE

Beachwood Stand Alone single story building on Chagrin Blvd with available basement and plenty of parking. Divisible – single office to 5,500 sq ft. Flexible - short or long term lease. Owner occupied.

216-752-8549 Office Space Downtown Cleveland 55 Public Square Newly remodeled attorney offices with secretarial space. Amenities and referrals available. Call Jeff Friedman at Friedman, Domiano & Smith, 216-621-0070

Beachwood 1,350 - 1,600 – 2,400 – 3,600 – 4,860 – 9,000 – 18,000 – 31,100 sf. Office & Warehouse

Brecksville 2,400 – 3,000 – 4,000 – 6,000 8,000 – 9,000 – 10,000 sf. Office & Warehouse

Bedford 1,400 – 2,800 – 4,200 – 11,600 sf Office & Warehouse

Cleveland For Sale or Lease – 15,000 sf ind. For Lease – 15,360 w/ 4,000 office

Parma 2,000 – 3,400 – Office & Whse. 8,600 sf Office For Sale – 3 Suites

Westlake 2,300 – 3,200 – 3,450 – 3,600 4,680 – 11,880 sf Office & Whse.

Solon 2,000 – 3,776 – 5,500 – 7,500 sf. Office & Warehouse

Fantastic Lease Incentives Brokers Protected

23945 Mercantile Road, Suite N Beachwood, Ohio 44122 Phone: 216.464.2140 Fax: 216.464.8587 www.coven-goldman.com

For Sale Rocky River, Gas Stations Detroit Rd. $675K, Lake Rd. $629K Lakewood, Carlyle Condo 2 br, Mint Short Sale $65K

For Lease Mentor, Industrial complex to 5100 sf. Clean facility Start at $868 mo. Open House 8/29 - Noon to 3PM HUD properties - Call Me!

Coldwell Banker Hunter Maurice Helou 440-725-6340

ATTENTION REALTORS Now is a great time to promote your Luxury Properties to high-end prospects AND receive reduced rates on your advertising. Call Genny Donley at (216) 771-5172 or e-mail GDonley@Crain.com for more details.

CLASSIFIED BUSINESS OPPORTUNITY NOTICE OF BUSINESS OPPORTUNITY The Cleveland Airport System of the City of Cleveland is soliciting proposals from qualified firms, to undertake the design, construction, lease and management of a nationally branded gas station/ car wash and related amenities on selected Airport owned property near Cleveland Hopkins International Airport. Interested parties may obtain a copy of the Request for Proposal, free of charge, under the Business Information section at www.clevelandairport.com; by calling (216) 2656086; by written request addressed to Procurement Section, Department of Port Control, 5300 Riverside Drive, P. O. Box 81009, Cleveland, Ohio 44181-0009 or by e-mail to dcartellone@clevelandairport.com. Proposals are due by 4:00 p.m. EDT Friday, October 1, 2010

BUSINESS SERVICES

Landerhaven We're Good. Google us. 440.449.0700

ExecutiveCaterers.com GET THE CAPITAL YOUR BUSINESS NEEDS! We have a network of banks, hedge funds, and private investors. - Equipment Leases - Lines of Credit & A/R Lending - Asset Based Loans & More! For a free review, email scenario to: info@midwestprivatecapital.com

BOOKKEEPING SERVICES Expert Bookkeeping with great service by certified Quick Books Professionals. We are 75% cheaper than your over-burdened accounting firm and 100% more friendly. Call Matthew at 440-533-9224 or email: sales@outsourcedbooks.org

FLYNN ENVIRONMENTAL For Assessments

(800) 690-9409 www.flynnenvironmental.com

FINANCIAL SERVICES BE THE BANK & EARN 6% on YOUR $$$ Seeking $1.9MM –1st mortgage loan secured by Federal Government (GSA) Lease

440-479-1010

BUSINESS SERVICE OWNERS! Submit your business card to promote your service and receive a SUBSTANTIAL DISCOUNT off your ad price.

To find out more, contact Genny Donley at 216.771.5172

For daily on-line updates, sign up @ CrainsCleveland.com/Daily

20100823-NEWS--19-NAT-CCI-CL_--

8/20/2010

AUGUST 23-29, 2010

2:27 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

THEINSIDER

THEWEEK

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

AUGUST 16 - 22

A classic move back downtown for WCLV

The big story: Forest City Enterprises Inc.

■ Classical music radio station WCLV-FM, 104.9, plans to pull up stakes from radio ranch by year-end for the Idea Center in Cleveland’s Theater District in a move that would represent a return to downtown. Radio ranch, for non-classical music listeners, is how WCLV’s on-air types describe its Warrensville Heights studios and offices. WCLV’s owner, the WCLV Foundation, is partnering with fellow nonprofits ideastream, the operator of WVIZ/PBS and WCPN-FM, 90.3, and OneCommunity, the regional broadband group, in a $2 million plan to outfit 15,000 square feet on the second floor of the building at 1375 Euclid Ave. The station left its former studios in downtown’s Terminal Tower in 1986. Robert Conrad, WCLV Foundation president, said the new arrangement will be “a little less costly” than continuing to lease space at 25601 Renaissance Parkway in a structure and radio tower it sold years ago. The building and tower now are owned by American Tower Co. But the big pluses for WCLV’s 19-person staff and its listeners will be collaborative ones. “You tend, after being downtown and moving to the suburbs, to develop a suburban mentality. You forget about what’s happening downtown,” Mr. Conrad said. “By moving into ideastream (space) we can get some synergies with WVIZ and WCPN. We can use the same satellite link. We also interview some of the same persons, and by being closer we can do it almost simultaneously.” Jerry Wareham, ideastream CEO, said the

and Dan Gilbert’s Rock Gaming LLC said their subsidiaries have reached agreements to clear the way for casino operations in downtown Cleveland. Under one agreement, Rock Gaming will acquire 16 acres and air rights from Forest City to build a casino along Huron Road next to Forest City’s Tower City Center complex. The companies also said they have agreed in principle on a multiyear lease for space in the Higbee Building within FILE PHOTO Tower City for potential construction and operation of a first phase of the casino. Forest City spokesman Jeff Linton said the land-sale agreement, which is expected to close by Jan. 31, 2011, includes property south of Tower City’s food court.

High in fiber: Nonprofit fiber optic provider OneCommunity said it will receive a $44.8 million federal stimulus grant that will fund 64% of a nearly $70 million fiber construction project targeting Northeast Ohio. OneCommunity said the grant, awarded by the U.S. Department of Commerce’s Comprehensive Community Infrastructure program, will add nearly 1,000 miles of fiber-optic cable to its high-speed broadband network, enlarging its total footprint to 27 counties and creating nearly 500 jobs. (For a related editorial, see page 8.)

Time for a change: Chancellor University appears prepared to turn over title to its home at East 40th Street and Chester Avenue to the Cleveland-Cuyahoga County Port Authority, which holds a $2.25 million first mortgage on the renovated, 54-year-old building. Brent Leslie, chief financial officer of the Port Authority, told the agency’s board that Chancellor has proposed to the Port Authority that the university turn over title to the agency by Dec. 31 and make payments to the agency totaling $500,000 between next week and the end of the year. Catherine Nita, Chancellor’s executive director of human resources, acknowledged negotiations with the Port Authority and said the university would be vacating the building. But she said the university would not announce when it was moving or to where until a deal for new space is complete. Towering deal: Penton Media Center, a 21story office building, became the latest property in downtown Cleveland owned by Optima International LLC with a $46.5 million purchase on Aug. 16. Through Optima 1300 LLC, Miami Beach-based Optima added the 575,000-squarefoot building to a stable of three other downtown properties acquired over the last two years. Optima bought Penton Media Center from K/B Fund IV Cleveland LLC, a real estate investment fund operated by KBS Realty Investors of Newport Beach, Calif. KBS paid $48 million for the building in 1997.

On the rise: Nordson Corp. said its board raised the company’s quarterly dividend by two cents a share, or 10.5%, to a new rate of 21 cents. The producer of automated spraying equipment said the increased dividend is payable Sept. 14 to shareholders of record Aug. 31. With this hike, Nordson’s fiscal 2010 represents the 47th consecutive year of annual dividend increases. On good authority: The Fund for Our Economic Future, a philanthropy-supported economic development organization, said its president, Brad Whitehead, was appointed as one of three members of the Ohio Venture Capital Authority by Gov. Ted Strickland.

WHAT’S NEW

parties will try to work jointly on as much programming as they can, such as orchestra concerts or civic forums. OneCommunity also plans to put a demonstration area and offices for HealthNet, its venture connecting health care operations by broadband, in the space. However, there is one negative to the planned move. Mr. Conrad said only 23,000 of the station’s 30,000-CD library will fit in the space. Look for a garage sale, he said. — Stan Bullard

In this case, bridging the gap wouldn’t be good ■ The new infrastructure lab at Case Western Reserve University is big. Enough. Just barely. The new lab — read all about it on the front page of today’s Crain’s — is a 2,600-squarefoot room featuring a super-strong floor, a super-strong L-shaped wall and a bunch of hydraulic pistons capable of applying crazy amounts of pressure to all sorts of structures that need to be sturdy. Bridges, for example. Like the replica that the National Park Service is building to replace a historic covered bridge in Gorham, N.H., that arsonists so cruelly burned in 2004. The National Park Service plans to deliver the replica bridge to CWRU over the next year. Then they will cram the 47-foot-long bridge into the lab. The lab should be big enough to handle it, said Dario Gasparini, a professor of civil engineering who helps run the lab.

Nonprofit Times says Richard has foundation of influence

The company, a maker of professionalgrade hand tools for the industrial and contractor markets, says the WrightGrip SB ratchet was designed primarily for users seeking safer installation of scaffolding. The 10½-inch WrightGrip SB ratchet is an all-inclusive tool that features a half-inch drive, 7/8-inch open-head ratchet, a replaceable hammer on the other side of the ratchet available with inserts in brass or steel, and a 7/8-inch open-end wrench on the end of the handle The open-head ratchet “allows for easier cleaning and quick directional switch letting the tool fit in narrower spaces making clearance easy,” Wright Tool says. The ratchet is interchangeable with a 2-inch deep socket for final tightening on smaller scaffold diameters. Wright Tool says its WrightGrip technology is featured on the open-end wrench. WrightGrip is a high-strength, anti-slip design for open-end style wrenches. The advanced opening profile “places more metal in highstress areas to stiffen the jaws, increase tool strength and reduce permanent jaw spread for better reliability,” the company says. For information, visit www.WrightTool.com Send new product information to managing editor Scott Suttell at ssuttell@crain.com.

In real estate, it’s still location, location, location ■ There is still money to be made in Cleveland real estate. Just ask 91-year-old former restaurateur Isabella Basile, a serial investor in urban property. A partnership Ms. Basile controls recently sold for $350,000 the dilapidated commercial building housing The Two Dollar Bookstore at 6820 Euclid Ave., according to Cuyahoga County land records. The buyer was LCA 6700 Euclid LLC, the investor group formed by the Geis and Coyne families to develop the muchballyhooed Euclid Tech Center in MidTown. Ms. Basile bought the two-story building in 1996 for $75,000 and was glad to sell it. However, she believes she did not do as well as she would have liked. Asked about the high sale price — Cuyahoga County set the building’s market value at just $119,000 — Fred Geis, who heads the tech center project, said, “She’s a tough negotiator.” Plus, the developers wanted the half acre of ground on which the building sits. Mr. Geis said developers needed the old building to add crucial frontage to their planned flexible building and to gain key corner visibility. Crews already are excavating parts of the rest of the site for the $20 million project. — Stan Bullard

BEST OF THE BLOGS Excerpts from blog entries on CrainsCleveland.com.

COMPANY: Wright Tool, Barberton PRODUCT: WrightGrip SB Ratchet

But not by much. “Hopefully it will fit,” he said. — Chuck Soder

■ Ronn Richard, president and CEO of the Cleveland Foundation, is one of the most influential executives in the nonprofit sector. Don’t take our word for it. Nonprofit Times, a leading industry publication, put Mr. Richard on its list of the 50 most influential nonprofit leaders in the United States. The magazine reported the 50 honorees Richard were drawn from a list of more than 250 people. Nonprofit Times said Mr. Richard’s “experience in biotech and international relations is pulling together government, nonprofit and for-profit leaders. As the state’s volunteer ‘infrastructure czar,’ and with the foundation’s cash, he has regional and national clout.” This is the first time anyone from the foundation has made the Nonprofit Times list, which has been published for 13 years.

Environmental studies building lives up to name ■ Oberlin College is home to the most important green building constructed since 1980. That’s the verdict from Architect magazine, according to a blog on Forbes.com. A survey for Architect asked 150 green building experts, including architects, what they thought were the five most important green buildings constructed in the last 30 years. The top vote-getter, with 13 votes, was Oberlin’s Adam Joseph Lewis Center for Environmental Studies.

The Lewis Center, completed in 2001, is a “zero-energy building” with classroom and office space, an auditorium, an environmental studies library and a Living Machine wastewater purification system. “The building is equipped with solar panels, energy-efficient lighting, a geothermal heating and cooling system, furniture with biodegradable upholstery and more,” according to the Forbes.com blog.

Mattress making you sick? Barry Cik wants to help ■ Barry Cik, an environmental engineer who runs a Cleveland organic mattress company called Naturepedic, argued in a piece on GreenBiz.com that Congress should pass legislation requiring chemical manufacturers to show they their products are safe before they end up in other products. “Called the Safe Chemicals Act in the Senate and the Toxic Chemicals Safety Act in the House, these proposals have the potential to improve Americans’ health and restore consumer trust in American businesses and products,” Mr. Cik wrote. Both measures would significantly improve what he called our “outdated system” for regulating chemicals, the Toxic Substances Control Act of 1976. In his business, the stakes are high. “No one sets out to make toxic baby mattresses; it just evolved that way,” Mr. Cik wrote. “As just one example, nearly all baby mattresses are covered with polyvinyl chloride (PVC) to make them waterproof. Because PVC is rigid, manufacturers mix in a class of chemicals called phthalates to soften the PVC. When added to PVC, phthalates don’t stay put; they leach into the air, making children more vulnerable to asthma, reproductive harm and cancer. “One short-sighted decision leads to another and, before you know it, you’ve got a very unhealthy baby mattress.”

20100823-NEWS--20-NAT-CCI-CL_--

8/20/2010

1:51 PM

Page 1

BMW 2011 328i xDrive

bmwusa.com 1-800-334-4BMW

JUST BEYOND LIMITS

The Ultimate Driving Machine®

NO TIME, OR OFFER, LIKE THE PRESENT

459**/month

for 36 months $0 Down OR

Financing as low as 0.9% APR

2010 GranTurismo Nero Carbonio/Marrone Corniola. MSRP $125,150 -- SAVE $25,250

NOW $99,900 Contact us for your Tailor-made personal tour. Please call for details on our specials. 2010 Quattroporte 4.7S . .Nero/Cuoio New . . . . . . . . . .MSRP $140,810 SAVE $10,900 2010 GranTurismo . . . . . .Nero/Nero New . . . . . . . . . . .MSRP $127,625 SAVE $19,725 2010 GranTurismo 4.7S .Bianco Eldorado/Cuoio New .MSRP $133,465 SAVE $13,500 2009 GranTurismo S . . . . .Grigio/Corallo New . . . . . . . .MSRP $145,175 SAVE $10,275 2010 GranTurismo Convertible . . . . . . . . . . . . . . . . .IN STOCK. CALL FOR DETAILS

MASERATI OF CLEVELAND 6137 KRUSE DR. • SOLON • 1-866-210-6707

Right now, get a 3 Series with no down payment required. No security deposit either. Just payyour first payment, and drive away in The Ultimate Driving Machine®. But hurry to BMW Cleveland today and take advantage, as this offer ends on August 31st.

BMW Ultimate Service™ Pay nothing. 4 years/50,000 miles. The most comprehensive maintenance plan (including wear and tear items) in its class.*

BMW Cleveland • 6135 Kruse Dr. • Solon • 1-866-210-6710 www.BMWCleveland.com * For full details on BMW Ultimate Service™ visit bmwusa.com/ultimate service. Based on MSRP of $40,050, on a 2011 328xi including destination and handling, excluding license, registration, taxes and options through 8/31/10. **36-month lease on well-equipped 2011 328xi at $459 per month with nothing due at signing except your first payment. Taxes and license fees are extra. 10,000 miles per year. Rates along with the $0 down payment and $0 security deposit program are for Super Elite/Elite/Standard credit tier level only. As low as 0.9% APR for up to 24 month term on all new 2011 328xi models. $42.06 per $1,000 borrowed. Through participating dealers and BMW Financial Services for qualified clients. For full leasing terms contact BMW Cleveland. The BMW name, model names and logo are registered trademarks.

The new 2011 LAND ROVER LR4

11-17maseratiAAA.indd 1

1/14/09 2:21:56 PM

This brilliantly gifted Land Rover has been further refined to include technological innovations that put an even greater emphasis on performance and comfort. More intelligent and intuitive than ever before, the LR4 provides a more confident drive that puts you in charge of the road. To see for yourself, visit Land Rover Solon today!

WINTER SNOW TIRES INCLUDED!*

3.9% APR up to 60 months

LEASES STARTING AT $699* 36 MOS. MSRP $48,500 Finance Rates as low as 2.9% for 36 Months.

LAND ROVER SOLON

6137 KRUSE DR.• SOLON • 1-866-210-6707 www.landroversolon.com

* With approved credit. 36 month lease. Total due at signing $2,995. Includes first payment, down payment, acquisition fee plus tax, title and registration fees extra. Customer responsible for excess wear and tear. 10,000 miles per year. 30¢ per mile over. Other LR4’s available at similar savings. Expires 8/31/10.

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

DESIGNED FOR THE EXTRAORDINARY

Early lease termination assistance up to $2,000 for lease or purchase. * Includes mounting, balancing and storage for two years. 3.9% APR Offer excludes XFR model. Jaguar Platinum Coverage includes all factory recommended scheduled maintenance for five years of 50,000miles, whichever occurs first. Wear and tear items are limited to brake pads, brake dics, 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 or JaguarUSA.com. ©2010 JAGUAR LAND ROVER NORTH AMERICA LLC

davis automotive group inc. 6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com