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“It’s important ... to get people out early. That’s when they make their choices.” – Cindy Cole, general manager, Bunker Hill Golf Course
Conventions quietly pile up at med mart To keep New York, Nashville foes at bay, developer mum on dozen-plus events in fold
MARC GOLUB
By JAY MILLER jmiller@crain.com
COME TO PLAY, STAY To stem declines in revenues and rounds played, golf courses devise reward programs to keep customers coming back THE DOOR’S ALWAYS OPEN
By JOEL HAMMOND jmhammond@crain.com
I
f you need an extensive intervention with your golf swing — in the form of round after round on area courses — you’re in luck this spring. Reward cards and multi-round packages are the in thing, as general managers and golf pros have a two-pronged goal: Get golfers out early, and entice them to come back and keep coming back. “There is a high density of courses here, that’s no secret,” said Cindy Cole, general manager of Bunker Hill Golf Course in Medina. “It’s important, then, to get people out early; that’s when they make their choices, in the spring.” Ms. Cole has done that by pushing Bunker Hill’s See GOLF Page 26
A sampling of the rewards/frequent golf programs area courses are running this spring: ■ Hawthorne Valley Country Club, Solon: The formerly private club offers 25- and 50-round packages, the latter of which, for $3,100, costs about $2,400 less than the previous cost of membership ■ Briardale Greens Golf Course, Euclid: It offers a variety of incentives, including advantage cards, which priced at $59 and $169, offer $8 and $12 discounts, respectively, on each round ■ Shale Creek Golf Club, Medina/The Quarry, East Canton: For $49 (seniors) and $79 (others) at these Granite Golf Properties club, golfers get $15 off subsequent rounds
The private developer of Cleveland’s planned convention center and medical merchandise mart hasn’t made any announcements about landing tenants, as a competing project in Nashville, Tenn., did last week. But MMPI Inc. quietly has lined up more than a dozen medical or health care conventions for the convention center that’s expected to open in 2013. Asked about street talk that MMPI has tentative agreements to hold 14 conventions at the convention center to be built on Cleveland’s Mall, Cuyahoga County commissioner Tim Hagan said, “It’s more like 16 or 17.” Mr. Hagan said Chicago-based MMPI wasn’t talking up its success
— and does not want to disclose the names of the groups it has made deals with — because of competition from two rival medical mart projects. “If they announce, the others will go and try and beat their price,” Mr. Hagan said. Developers in Nashville and New York City also are marketing similar trade centers focused on medicine and health care, with the Nashville center targeted to open in 2013, too. MMPI spokesman Dave Johnson declined to comment last week on how many conventions it might have lined up for the Cleveland medical mart. Another MMPI executive, though, has talked about the company’s success with landing tenants for the permanent showrooms. The $425 million, Cleveland trade show See MART Page 8
INSIDE Bucking the retail real estate trend There figures to be plenty of action this summer at Plaza at SouthPark in Strongsville, where four new leases recently have been signed. The developer’s vice president of leasing, Mark Schroeder (pictured), says the site’s location — right off Interstate 71 — has helped. Read Stan Bullard’s story on Page 4.
Restoration plan for AmTrust Bank never got rolling, bankruptcy shows Institution fell well short of capital levels requested by federal regulator
In a once-confidential risk reduction plan made public in connection with a bankruptcy case, AmTrust Financial Corp. outlined its strategy to shrink its former AmTrust Bank by one-third and return the institution to profitability by the end of June 2010. However, by the time AmTrust
Bank failed last Dec. 4 and was taken over by New York Community Bank, it had declined well below capital levels described in its former parent’s plan. The federal Office of Thrift Supervision on Nov. 4, 2009, notified the bank’s board of directors via couriered letter that the bank
18
By ARIELLE KASS akass@crain.com
was “significantly undercapitalized” and had until the end of the month to file a capital restoration plan. The regulators’ demands followed November 2008 cease-and-desist orders to both AmTrust Financial and AmTrust Bank that required them to create a new business plan for the bank. That plan was submitted
and accepted in January 2009, but the Office of Thrift Supervision said the goals were not sufficiently met at the time the Nov. 4, 2009, letter was sent. That letter, which called for “prompt corrective action,” noted that AmTrust Bank was experiencing a “rapidly deteriorating financial
condition, and asset quality deterioration,” and it required the bank to be adequately capitalized by Jan. 31, 2010. As of Oct. 30, 2009, the bank had a risk-based capital ratio of 5.29%; regulators had requested it be raised to 12%, and AmTrust Financial said in its January 2009 risk reduction plan that it would not drop below 8.08%. See AMTRUST Page 7
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SPECIAL SECTION
Crain’s identifies some of Northeast Ohio’s top health care professionals, volunteers and groups ■ Pages H1-H9 ■
CrainsCleveland.com/30thanniversary
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CLASS ACTS
COMING NEXT WEEK
There were 2.9 million Americans age 16 to 24 who graduated from high school in 2009, and 2.1 million, or 70.1% of them, enrolled in college that fall, the highest percentage since the federal government began tracking such data in 1959. (The rate that year was 45.7%. It only crossed the 60% mark in 1991.) For 2009 graduates, the college enrollment rate was 73.8% for young women and 66% for young men. Here’s how the enrollment percentage has increased in the past decade:
Down on the farm ... in the city For-profit urban farmers are springing up across Cleveland, and more are waiting in the wings as funding becomes accessible. Could this form of agriculture be the next viable small business sector? We analyze this emerging business model.
CORRECTION
REGULAR FEATURES
An April 26, Page One story on the impact of state taxes on the wind technology industry misstated the name of Cardinal Fastener & Specialty Co. in Bedford Heights.
Blog highlights..27 Bright Spots ....6 Classified ......26 Editorial ........10 Going Places ..14
List: Commercial printers ......24 Personal View 10 Tax Liens........13 What’s New ....27
Year
College enrollment
2009
70.1%
2008
68.6
2007
67.2
2006
66.0
2005
68.6
2004
66.7
2003
63.9
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV
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INSIGHT
Grad school applications flood colleges Precarious economy, jobs climate drive more students to seek master’s degrees By SHANNON MORTLAND smortland@crain.com
Whether they’re looking for security in their current field or preparing for a new career, more people are applying to Northeast Ohio’s graduate schools. Applications to local graduate
schools are up 8% to 40%, depending on the institution, and the economy likely can take much of the credit. “When the economy is in crisis, graduate enrollment goes up because people see that as a way of rebranding themselves and advancing their careers,” said Mark Storz, associate dean of graduate studies
in the College of Arts and Sciences at John Carroll University. Indeed, John Carroll’s College of Arts and Sciences, which does not include its Boler School of Business, received 241 applications from Jan. 1 to April 15, a boost of 23% from the 195 graduate applications received during that period in 2009, he said. Notre Dame College only offers a master’s degree in education, but that program now is offered both on campus and online, said Margaret Oakar, director of the Finn Center
for Adult Graduate and Professional Programs at Notre Dame. Ms. Oakar said she believes the addition of online courses helped increase Notre Dame’s application base for summer and fall by 40% so far over this time last year. That number is expected to rise because graduate enrollment continues through the summer, and students tend to apply and enroll at the last minute, she said. Though Ursuline College didn’t have specific figures on applications,
THE WEEK IN QUOTES
CB Richard Ellis exec latest part of Dallas firm’s Cleveland team
— Cindy Cole, general manager of Bunker Hill Golf Course in Medina. Page One
By STAN BULLARD sbullard@crain.com
“In the beginning, I never would have thought we would have a detention basin designed to cool rainwater. Nor did I think we would have to do a bat survey.”
JANET CENTURY
Steve Schlegel, industry marketing manager for PolyOne Specialty Engineered Materials, displays sample parts created from reSound biopolymer material and OnColor BIO colorants, two of the bio-based materials that PolyOne offers.
— Dominic Visconsi Jr., co-president, Visconsi Development Ltd. Page 4
— Sam McNulty, owner of Bar Cento, Speakeasy and McNulty’s Bier Markt. Page 9
“To package the port authority’s efforts … as a reorientation is simply the result of an expensive public relations program designed to buy time while the board wipes the bewilderment from its eyes.” — From a Personal View. Page 10
See SCHOOL Page 25
Realty power players join brokerage’s local startup
“This has been our best April. People are making their golf decisions very last-minute right now, so this is a way to communicate better. Baseball practice got canceled tonight? This is what we have available.”
“I control my real estate. I work hard, live simply and reinvest as much as I can into the business.”
the school expects to exceed its fall 2009 graduate enrollment of 438, which was 34% higher than the 326 graduate students who enrolled in fall 2008, said Brandi Rizzo, assistant director of graduate admissions at Ursuline. Graduate applications for fall 2010 at the University of Akron are up 8% over those submitted for fall 2009, said Mark Tausig, associate dean of the graduate school and a professor of sociology at Akron. The College of
SHAPING THE FUTURE OF BIOPLASTICS Manufacturers such as PolyOne look to improve strength, toughness of eco-friendly material for use in durable goods By CHUCK SODER csoder@crain.com
P
olyOne Corp. wants to be the company to put bioplastics in your car, your computer and your coffee maker. The polymer producer in Avon Lake, one of several local companies selling or using plastics made from biological material, is getting ready to release a line of bioplastics just in time to capitalize on an expected boom in demand for durable, environmentally friendly plastics. Bioplastics today are usually found in disposable items, including SunChips bags and Paper Mate pens, because the chemicals See BIOPLASTICS Page 24
PHOTO PROVIDED
A line of bath products are molded from a proprietary, bio-based polymer compound made by PolyOne.
Dallas-based real estate broker Mohr Partners Inc. quietly has drafted the last player of a veritable dream team for its Cleveland office. In what is the latest in a series of personnel shifts during the worst business conditions in decades, Robert Redmond, a senior vice president at CB Richard Ellis’ Cleveland office, last week cleaned out his cubicle at 200 Public Square. He exited the city’s largest commercial brokerage team for Mohr’s 7month-old Cleveland venture, which now has three producers with his addition. After 12 years at CB, Mr. Redmond, the former president of the Redmond Cleveland Area Board of Realtors and former head of the office unit of what’s now Colliers Ostendorf-Morris, joins another recent Mohr recruit — industrial broker Kenneth Fleming. Mr. Fleming is the former director of the industrial unit at Grubb & Ellis Co.’s Cleveland office, and most recently was a consultant at Graystone Properties Inc.’s makeover of Tyler Village in the St. Clair-Superior neighborhood. Each man has decades of depth in Northeast Ohio’s brokerage business, with the contacts that come with management duties. Both are crucial in the still-relationship-oriented commercial real estate business. Dennis Burnside, Mohr’s Cleveland managing partner, said Mr. Redmond’s most recent focus on tenant representation and corporate services work perfectly fits Mohr. Mr. Burnside said Mr. Fleming, who quietly joined the firm a few weeks ago from Graystone, offers the same bonuses to Mohr. Mohr’s Caxton Building Cleveland office expects to number no more See TEAM Page 25
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Strongsville retail center bucks weak trend With four new leases, Visconsi development enjoys good timing, big geographic footprint By STAN BULLARD sbullard@crain.com
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As Mark Schroeder, vice president of leasing for Visconsi Development Ltd., surveys the four buildings that dot the 43-acre Plaza at SouthPark in Strongsville, he observes that there will be “a lot of work out here this summer.” It’s a surprising statement considering that the Pepper Pike real estate developer completed construction of the 300,000-square-foot shopping center last year. However, this year’s work will follow the recent inking of four leases, covering a total of 33,000 square feet of selling space, for tenants that will go into the plaza by fall. The additions will be La-Z-Boy Furniture Galleries, which is replacing a freestanding store in Middleburg Heights by taking 17,000 square feet; Samurai Sushi & Hibachi, a Sandusky-based company that will occupy 5,400 square feet with its third store and first in the Cleveland suburbs; and Five Below, a retail chain that focuses on fashion accessories and sports equipment for young teens. It will take 7,500 square feet. Buildings that will rise this summer will house a Rockne’s restaurant and Chick-Fil-A. Two other tenants are in final negotiations, which will bring the center to 98% leased. The only vacancy will be a 6,000-square-foot spot reserved for an upscale restaurant. “It’s the last piece,” Mr. Schroeder
STAN BULLARD
Mark Schroeder, vice president of leasing at Visconsi Development Ltd., envisions plenty of work at the company’s Plaza at SouthPark in Strongsville, where four leases recently have been completed.
“There are fewer small stores ... today than there were then due to retail consolidation.” – Dominic Visconsi Jr., co-president, Visconsi Development Ltd., on Plaza at SouthPark’s ability to house big tenants said. “We want something special, not another sports bar.” Capping off the bulk of the center’s leasing is worth noting because it happened during the retail downturn and marks the end of an epic development in terms of time and effort. Visconsi tied up the initial 20 acres for the project in 1993, recalled Dominic Visconsi Jr., the company’s co-president. Later, Visconsi doubled the project’s size by forming a partnership with a neighboring landowner, a partnership involving now-retired real estate brokers Joseph Aveni and Jim Miller and the estate of Vincent Aveni.
Going bats over bats
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The years flew by, consumed first by bitter litigation with the city of Strongsville over zoning plus neighborhood opposition to development of the well-forested land. Later delays came from difficult-to-obtain environmental approvals. “In the beginning, I never would have thought we would have a detention basin designed to cool rainwater,” Mr. Visconsi said. “Nor did I think we would have to do a bat survey.” Today a five-acre, 40-foot deep detention basin has young oaks and willows that will grow to form a canopy over rainwater in the basin. The treetops will moderate water temperature before it empties into nearby streams. Mr. Visconsi also recalls that the same night he saw the movie “Batman Begins” in 2005, workers were stringing nets across trees to see what bats occupied the site. “We caught a lot of bats, but no Indiana bats,” Mr. Visconsi said, referring to bats that are endangered species under federal law. Seeing the movie, Mr. Visconsi believes, was a good omen.
However, the passage of time turned out to work to the project’s advantage in terms of tenants.
Timing is everything When the plaza was conceived, big-box stores were dueling over sites in the suburb. Among them were home improvement retailers Home Depot and Lowe’s, both of which eventually went elsewhere. Likewise, electronics and home goods category killers were hungry for space. The plaza would ink both Bed, Bath & Beyond and Best Buy. Meanwhile, competitors Linens-NThings — which actually offered to pay more for space at the plaza — and Circuit City both failed in this downturn. “How do I feel about that? Lucky,” Mr. Visconsi said. Most of all, Mr. Visconsi recalled, the Costco membership warehouse chain did not begin to enter the Northeast Ohio market until this millennium. Today, Costco’s third store in the region has two football fields of selling space under one roof as it anchors the center. “That gave the center much greater reach south, into Medina County, than it would have had,” Mr. Visconsi said. Moreover, had the company constructed the center in 1993, it would have had a far higher percentage of small-shop space than the final product. “There were fewer category killers than we have now. Mr. Visconsi said. “There are fewer small stores on a national or regional basis today than there were then due to retail consolidation.” Mr. Visconsi attributes recent leasing wins to an improving outlook by retailers and “a fantastic site” next to busy Interstate 71 that is across the street from a regional mall — Westfield’s SouthPark Mall — amid densely developed suburbs. Mr. Schroeder said his message as he negotiates the last space is the same one he delivered to prospective tenants 11 times annually as the project jumped hurdles. “This, too, shall pass,” Mr. Schroeder said. “Great locations are forever.” ■
Volume 31, Number 18 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. (888)9099111. REPRINT INFORMATION: 800-290-5460 Ext. 136
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Under new management, software outfit retools Formerly Intuit, Highland Hills’ MRI moves from retraction to rejuvenation, eyes growth By CHUCK SODER csoder@crain.com
If MRI Software LLC were a sports team, 2010 would be described as a rebuilding year. Now under new ownership and new leadership, the company in Highland Hills formerly known as Intuit Real Estate Systems is hiring employees across all departments after enduring a rough 2009. The effort is part of the real estate software firm’s new strategy, which puts more focus on improving both MRI’s products and its relationships with existing customers, said CEO David Post. “This year has been all about infrastructure investment,” he said. Mr. Post was brought on board by MRI Software’s new owner, Vista Equity Partners of San Francisco, to replace general manager Jeff Thompson. The private equity firm in January bought the company from financial software firm Intuit Inc. of Mountain View, Calif., for $128 million. MRI’s situation today looks a lot different than it did a year ago. In April 2009, Intuit announced that it had cut about 40 positions from the company. Now, however, MRI already has started adding staff as part of what Mr. Post described as an “aggressive” 2010 hiring plan. The company, which has about 200 employees in Highland Hills and 310 worldwide, expects to bring on at least two software developers per month through the course of the year, as well as a total of 10 to 20 back-office staff, in addition to other employees. The company needs the back office employees because Intuit no longer provides MRI with functions such as human resources, payroll and information technology support. It needs the developers because MRI plans not only to improve its software, but also to do more of the work in house. Intuit had other companies do some of the firm’s software development, Mr. Post said. “Who better to build our products than us?” he said. Mr. Post said the company also is going to put more emphasis on its sales department spending more time with existing customers, which include real estate managers and investors as well as companies with large amounts of property. Intuit, by contrast, focused more on communicating with customers by phone, he said.
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Intuit sold the business because it didn’t fit with the parent company’s strategy of focusing on software for consumers and small businesses.
Investing for the long run Vista Equity Partners invests only in software firms. Although its portfolio companies serve a variety of industries and customers, MRI should be able to tap the private equity firm’s vertical knowledge of the software market, Mr. Post said. “We see the same challenges … as
a software company that serves automotive manufacturers,” he said. Mr. Post, too, has experience in the software industry. He previously was chief operating officer for lab and hospital software firm Sunquest Information Systems Post of Tucson, Ariz., another company owned by Vista, and held positions at other information technology companies. Mr. Post said he considers the option to continue working for Vista a bonus to taking the position at MRI. He described Vista, which has more than $2 billion in capital under management, as a great
shareholder that isn’t afraid to make long-term investments. “We’re comfortable making the right investments that are going to pay off in the long run,” Mr. Post said. The managing principal of Vista did not return a message left last Wednesday, April 28, with his assistant. The Highland Hills company, which was called Management Reports Inc. before Intuit bought it for $92 million in 2002, expects 2010 to be another challenging year, said Mr. Post, who declined to release revenue figures for the firm. However, the ability of MRI’s software to help
NEW PRIORITIES MRI Software is in rebuilding mode. Its strategies include: ■ Hiring: MRI expects to bring on more software developers this year, as well as back-office staff and other employees. ■ Focus: The sales department will spend more time with existing customers. customers be more efficient should sustain sales, as should the effort to embrace existing customers, Mr. Post added. “I think that we’ll be able to manage through,” he said. ■
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BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s highlighting positive business developments across Northeast Ohio. To submit information, e-mail Scott Suttell at SSuttell@crain.com. ■ Miller Boat Line needed a bigger boat, and a Cleveland com-
pany obliged. Great Lakes Shipyard, a division of The Great Lakes Group in Cleveland, has completed the fabrication and installation of a 40-foot, midbody extension to the passenger ferry Put-in-Bay for Miller. Miller, based in Put-in-Bay, awarded the contract to Great Lakes Shipyard last August. All work was
done at Great Lakes Shipyard’s operations on the South Bank of the Old River Channel on the Cuyahoga River. The companies held a dedication ceremony for the ship last Thursday, April 29. What started out as a straightforward extension project “grew into a complete rebuild, including replacement of the main engines with new CAT C18 diesels,” Great Lakes Shipyard said in a statement. The extension of the Put-in-Bay increased the
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length of the vessel to 136 feet from 96 feet and nearly doubled its carrying capacity. The project also included the installation of new rudders, a new steering system, new main engine keel cooling system, generator overhauls, and new propellers. Miller Boat Line’s fleet has four all-steel passenger ferries, which run on Lake Erie from Catawba to Put-in-Bay (South Bass Island) and Middle Bass Island. Great Lakes Group has been in Cleveland since 1899. In 2007, the company built a fabrication and repair operation on the Cuyahoga River for the construction of unique, custom-designed marine products, such as the mid-body section, and for tug and barge construction. ■ The Rite Aid Cleveland Marathon, Half Marathon & 10K, which stages its 33rd annual running on May 15-16, is winning the race to attract sponsors and participants. Event organizers say the race has attracted 20 national and local sponsors so far. And while last year’s event drew 12,400 registrants, race officials say they’re expecting between 14,000 and 15,000 participants. “The continued growth of this event has captured the attention of not only national companies seeking the attention of the running community, but also local organizations who want to support an event of this magnitude and all the benefits it brings our city,” Jack Staph, executive race director, said in a statement. “We’ve also maintained our sponsor relationship with nearly all of our past event sponsors, which is a strong statement during a tough economic time.” As of last week, the following had been added as new sponsors for the 2010 event: Gold Sponsors: Smartmouth Mouthwash, Stopain, Celestial Seasonings Tea Bronze Sponsors: Trident Layers Gum, 7Up, Miller Genuine Draft, Cleveland Institute of Art Friends of the Marathon: CNN Fit Nation, Nature Valley, Jif, Smucker’s, Ben & Jerry’s, Nabisco, Kraft Foods, Frito Lay, City of Cleveland, Cleveland City Council, Cleveland Scene, Cleveland Cavaliers, Lake Erie Monsters Information about the event is available at www.ClevelandMarathon .com.
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■ Work by Van Auken Akins Architects LLC was included in the Exhibition of School Architecture at the 2010 National School Boards Association’s 70th annual conference, held April 10-12 in Chicago. The juried exhibit “depicts the newest ideas in school construction and design carefully selected by experts in the field,” according to conference organizers. It featured 59 school building projects. Of the 59 firms selected, Van Auken Akins Architects was the only one from Cleveland and one of just two in Ohio. Van Auken Akins Architects submitted the Orange High School Commons renovation project. The design incorporated an open-sky, shell renovation of the 1970s high school cafeteria as a new, sustainable multipurpose space. The project included solar panels and several distinct types of solar-powered lighting. Educational signage informs students and visitors of the sustainable features, systems and practices integrated into the building, the firm says. ■ The University of Akron received a $303,000 federal grant to digitize part of a photo collection detailing the history of Goodyear Tire and Rubber Co. The two-year grant from the National Endowment for the Humanities will be used to scan and catalog about 22,500 of the company’s 250,000 photos. The grant also will enable the university to inventory the entire collection, which spans from 1912 to 1984, and to preserve the oldest photos taken up to 1951. Goodyear donated the collection to the university in 2008. It features photos of products, workshops, factories, company events, companysponsored celebrities and development of the blimp.
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Amtrust: Bank tried to limit property risk continued from PAGE 1
Christopher Meyer, an attorney for Squire, Sanders & Dempsey who is representing AmFin Financial — as the holding company is now known — in its bankruptcy case said he has a draft copy of the bank’s capital restoration plan dated Nov. 27, 2009. Mr. Meyer said he and other counsel who worked with the company believe a response to the Office of Thrift Supervision was submitted before the deadline of Nov. 30, which was the same day the holding company filed for bankruptcy. A spokesman for the Office of Thrift Supervision said he could not comment on whether such a plan was received, and Mr. Meyer said that plan remained confidential.
Paper trail The federal agency’s request for prompt corrective action is one piece of a year of correspondence between AmTrust Financial and its regulator that was released as part of the holding company’s attempt in U.S. Bankruptcy Court in Cleveland to prove it does not owe the Federal Deposit Insurance Corp. the $518.5 million the FDIC claims it is entitled to as a result of AmTrust Bank’s failure. The FDIC is claiming AmTrust Financial failed to be a “source of strength� to the bank after committing to keep AmTrust Bank well capitalized. AmFin Financial, however, says the holding company did not promise to keep AmTrust Bank well capitalized, and repeatedly notes in its risk reduction plan and elsewhere that it would not contribute any more money from the holding company to the bank, outside of a $14.9 million capital contribution that was made Dec. 31, 2008. Kevin Jacques, the Boynton D. Murch chair in finance at BaldwinWallace College and a former economist for the U.S. Treasury Department and the Office of the Comptroller of the Currency, said the rest of AmTrust Financial’s plan was “a fairly standard story,� but the holding company’s pledge to make no more contributions to the bank was unusual. “The FDIC was under an enormous strain with the pressures in the financial market,� Dr. Jacques said. “They were willing to grant AmTrust some room to solve (the bank’s capitalization problems) themselves. They (federal regulators) may be under so much stress that they accept something they otherwise might not have.� Indeed, from the time AmTrust Financial and AmTrust Bank received their 2008 cease-and-desist orders, bankers and others who watch the area’s financial system repeatedly predicted that the bank would fail, sometimes expressing surprise that it had lasted as long as it did. When AmTrust Bank submitted its risk reduction plan to regulators Jan. 5, 2009, the bank requested that the plan be made confidential as it “would reveal to competitors or other adverse parties information about our internal business and business strategies, transactions and competitive position, and could cause reputational harm to us, and place us at a disadvantage with respect to its competitors who would not be exposed to these risks.� The plan, which covered the period from Jan. 1, 2009, to June 30, 2010,
CRAIN’S CLEVELAND BUSINESS
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AMTRUST’S TIMELINE A look at the timing surrounding AmTrust Financial Corp.’s bankruptcy and the seizure of AmTrust Bank: Nov. 2008: Office of Thrift Supervision issues cease-and-desist orders to AmTrust Financial and AmTrust, requiring them to create a new business plan Jan. 2009: AmTrust Financial submits a new business plan to OTS Nov. 4: OTS notifies AmTrust Bank’s board that it is significantly undercapitalized and had until Nov. 30 to file a recapitalization plan Nov. 27: Day the bank’s parent company’s attorney says a draft of its recapitalization plan is dated Dec. 4: AmTrust Bank fails
was approved by the Office of Thrift Supervision Feb. 20, 2009, after AmTrust supplemented it with more information later in January. That information was not included in the Bankruptcy Court filing.
Overly optimistic? The key components of the January 2009 risk reduction plan include a 47% reduction in exposure to all residential non-performing loans, with a focus on ditching interestonly loans on one- to four-family homes and those loans that required little documentation to secure; a 25% reduction in exposure to land acquisition, development and construction loans and related real estate owned by the bank; a 33% reduction in total assets; and a 28% reduction in deposits, particularly brokered deposits and others with high rates. If successful, the bank would have shrunk from an institution with $15.4 billion to one with $10.3 billion, the plan said, and would have “substantially reduced� its levels of inherent credit risk. According to information from the FDIC, AmTrust had $11.4 billion in as of Sept. 30, 2009. As a result of its plan to shrink, AmTrust Bank anticipated that its capital ratios would continue to decrease below regulators’ prescribed amounts, but would remain above typical minimum requirements. Dr. Jacques said for a bank that was in the kind of trouble AmTrust was, minimum levels usually are not acceptable. “In this crisis, the FDIC is allowing a little more leeway than would otherwise be the case� before moving to close a bank, he said. “I’ve got to believe the FDIC looked at this and was not happy.� Still, regulators accepted the terms of the plan.
Trouble with capital AmTrust Financial’s insistence in the risk reduction plan “that no further capital contributions will be received from the holding company or outside sources� meant the holding company was writing off two of the three ways the bank could be saved, Dr. Jacques said. It was choosing only to reduce the bank’s assets but not to raise capital either internally or externally. “It’s not standard FDIC operating procedure here,� Dr. Jacques said. “That’s not typical at all. They’re not
going to let the parent off the hook. This is a highly unusual situation.â€? Charlie Crowley, managing director of investment banking in Cleveland for Stifel Nicolaus & Co., said he believes AmTrust Financial continued to pursue outside capital, but chose not to include that possibility in its plan because the company was not sure if it could commit to an infusion. “You can’t ever predict with certainty if or when outside capital will come in,â€? Mr. Crowley said. “The plan is based on what they thought they could control.â€? Before the cease-and-desist orders were official, though, AmTrust Financial appeared to believe it was in good shape for the future. A capital management policy confirmed July 30, 2008, and attached to an FDIC filing in the bankruptcy case said the holding company was “in the middle of a capital raising exercise.â€? Outside companies had analyzed the bank’s mortgage portfolio, implemented risk software to improve the evaluation of capital and benchmarked AmTrust Financial’s methodology as compared to its peers, recommending additional analysis to cover some risks. “AmTrust recognizes that management must be prepared to respond should events trigger the potential for the capital ratio’s (sic) to fall below the well capitalized level,â€? a policy summary said. In the end, the bank responded by cutting the salaries of some executive managers by 20%, laying off nearly 750 employees over a 15month period and selling the bank’s Columbus branches, according to the risk reduction plan and information from the FDIC, before it was seized. â–
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Mart: Size of Nashville project enticing to tenants
PROGRESS REPORT Three competing plans for medical merchandise marts have been in the news plenty. A look at what Cleveland’s rivals are doing:
continued from PAGE 1
■ Nashville: Originally planned for $300 million and 1.5 million square feet, the Nashville Medical Trade Center has been downsized to $200 million; its size remains the same. ■ New York City: The World Product Center originally was introduced in September 2008 and planned at $1 billion, 1.5 million square feet. Since, though, financing difficulties reportedly have forced its developer to lease 300,000 square feet of existing space instead, and the opening date is unknown.
complex is planned to include 120,000 square feet of permanent showrooms for makers of medical and health care products to display and sell their merchandise, along with 300,000 square feet of convention space. “We have about 35 to 40 letters of intent from manufacturers that want space in the mart or have said they will participate in the trade shows that take place,” Mark Falanga, MMPI senior vice president told Modern Healthcare magazine, a sister publication of Crain’s Cleveland Business, in late April.
A question of scope Competitors has been more forthcoming about commitments
they have received. Last week, Market Center Management Co., the Dallas firm that is working to build the Nashville Medical Trade Center, announced that the Healthcare Information and Management Systems Society would be its first tenant, taking 25,000 square feet to create a health care information technology showcase. The Chicago-based society claims 23,000 members who use or sell IT and management systems in health care settings. H. Stephen Lieber, president and CEO of the Healthcare Information and Management Systems Society, told Crain’s last week that his organization had conversations with both the Nashville and New York
organizations before choosing Nashville. He said the main reason for choosing Nashville, without even talking to Cleveland, was the larger size and scope of that project. “(Cleveland) didn’t pass my analysis in terms of the broadest appeal, the depth of health care products that would be a part of the mart, the ability in terms of additional space for exhibitions and educational programming,” Mr. Lieber said. “We just felt the scope of the two projects was considerably different.” However, Mr. Lieber said his organization’s agreement with Nashville has an “out clause,” allowing it to withdraw from the project if certain factors change, such as date
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of completion or size of the project. That kind of clause is likely in any agreements MMPI has with its partners. MMPI’s Mr. Johnson said the company had no comment on the Nashville transaction.
Other projects shrink Announced in May 2009 as a $300 million, 1.5 million square-foot facility, the Nashville trade center has been reduced in cost to $200 million though its size remains the same. Market Center Management executives have said their project needs to pre-lease 60% to 70% to win financing so they can start construction. The Healthcare Information and Management Systems Society agreement ties up less than 2% of that total. Meanwhile, the New York project has been downsized dramatically. In September 2008, New York real estate developer Israel Green and the Greater New York Hospital Association announced a partnership to build a $1 billion, 1.5 million-squarefoot World Product Center that would be financed with proceeds from long-term leases with tenants. However, Modern Healthcare reported that the partnership, called GNYHA Ventures, had scaled back its plans in March. The publication said the partnership now plans to lease 300,000 square feet of existing real estate for the complex because of financing difficulties. Its opening date is unclear. Of the three projects, the Cleveland center is in the best shape financially. It has roughly $425 million in financing, the result of the one-quarter percentage point, 20-year sales tax increase passed in 2007. Cuyahoga County already has more than $90 million banked for the project. MMPI and the county still need to gain control of several parcels of land for the medical mart. However, MMPI still plans to break ground before the end of the year. ■
ON THE WEB
Story from www.CrainsCleveland.com.
Teen retailer to open 6 stores Five Below, a chain targeting teens and preteens with value-priced fashion and fun items, plans to open six stores in June in Northeast Ohio. The Philadelphia-based retailer with 105 stores in 12 states expects to hire about 200 people to run its stores in the region, said Tom Vellios, cofounder and CEO, in an interview. Mr. Vellios said the chain expanded into Northeast Ohio because it is moving west and did well with stores it opened last year in Pittsburgh. Five Below will have locations averaging 7,500 square feet at Ridge Park Square shopping center in Brooklyn; Westgate in Fairview Park; Macedonia Commons in Macedonia; Eastgate Shopping Center in Mayfield Heights; Stow Community Center in Stow; and The Plaza at SouthPark in Strongsville. Five Below also is negotiating for Fairlawn and Bainbridge Township sites. — Stan Bullard
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‘Unaffordable’ coverage could cost employers
WHAT’S COOKING What’s Cooking looks at the business of Northeast Ohio’s restaurants, breweries and wineries. To submit information, please e-mail assistant editor Kathy Carr at kcarr@crain.com.
CRAIN’S CLEVELAND BUSINESS
revenue growth each year since it opened. Mr. McNulty said the new digs will double the total number of employees who work at his other three locations, to about 80.
■ For some area restaurants enduring ■ Speaking of beer, Great Lakes the economy, the glass is half full. Brewing Co. announced its entry For some, it’s half empty. At Sam into Minnesota’s Twin Cities beginMcNulty’s three bars, glasses are ning today, May 3. The Ohio City both full and empty — either way, brewery will offer Burning River that’s a good thing. Pale Ale, Commodore Perry India The owner of Bar Cento, Pale Ale, Dortmunder Speakeasy and McNulty’s Gold Lager, Edmund Bier Markt — all Ohio Fitzgerald Porter and City neighbors — disEliot Ness Amber Lager cussed how his business at several area pubs and is brewing during these eateries within Mintough times, especially neapolis and St. Paul. when banks are so Also, Dortmunder Gold restrained with lending. was named by GQ maga“I control my real zine as one of the 50 best estate,” he said. “I work beers to try right now. hard, live simply and “Richer, hoppier, and reinvest as much as I can maltier than standard into the business.” American lagers — or Mr. McNulty, 35, plans even German ones — at the end of this year to open the Market Garden Speakeasy, owned by but crisp enough to be your new go-to session Brewery in 11,000 Sam McNulty beer,” the magazine square feet of an old said. “(Note to non-beer nerds, a building he bought next to the West session beer is usually one that’s Side Market. In discussing why he light in alcohol, allowing you to takes the approach to real estate drink several different ones during that he does, Mr. McNulty cited the the course of an evening. Or day.) experience of starting his own onDortmunders are tough to find even campus eatery while he was a stuin the homeland, but thankfully dent at Cleveland State University. craft breweries like Great Lakes are “They wouldn’t renew my lease,” making them common fare around he said. “I figured it’s better to avoid here.” a landlord.” Being guided by that philosophy, ■ About 500 people showed up the globetrotter and entrepreneur April 20 and 21 to interview for cobbled together money from his about 70 jobs at the new Melt in paper route at The Plain Dealer and Cleveland Heights, which is schedcash from local real estate investuled to open May 21. ments to open his first venWhile Matt Fish, chef ture, the Bier Markt, in and owner of the grilled 2005. cheese eatery, expected to “I saved every dime I draw a large number of had,” he said. “It’s capitalapplicants to the job fair, intensive, but it allows me he wasn’t expecting the to deploy a higher level of deluge of job seekers, some long-term investment into of whom hadn’t worked in the business.” Fish more than a year. The total cost to open “We saw a very genuine crossBier Markt, Bar Cento and section of the unemployment Speakeasy was about $2 million, market,” Mr. Fish said. “I am though Mr. McNulty extremely happy that we were able declined to provide specifics on the to hire almost 70 people last week. I Market Garden Brewery’s project only wish we could offer something cost. to everyone.” “Way too much,” he quipped. The demand underscores the Nonetheless, he said now is an need for people to secure employideal time to augment the dining ment during a time when Ohio’s and pub scene with another estabjobless rate is in double digits — at lishment because Ohio City continues 11% — and job openings are hard to to evolve as one of Cleveland’s come by. premier entertainment districts. “We luckily were very prepared He’s definitely in good spirits. for the crowd with volunteers that The Market Garden Brewery will be consisted of my current employees the only distillery in Cuyahoga from Lakewood,” Mr. Fish said. County other than Paramount “We originally thought that we Distillers in Berea. In addition, Mr. would have more help than needed, McNulty, brewmaster extraordibut it turned out that we could have naire Andy Tveekrem (also known actually used more help.” as the Striking Viking) and crew will Mr. Fish said he offered jobs over make their own brew using locally the April 25 weekend to the final sourced ingredients. candidates. “We’re in the process of drinking “With the overwhelming response on it,” he said, when asked which of applicants, we were able to select beers he will feature. “We’ll also be an opening day staff that we feel making our own whiskey, rum, will represent the new Melt in vodka, gin and brandy.” Cleveland Heights very well,” Mr. Mr. McNulty doesn’t have immeFish said. diate plans to distribute his product, although some of those drafts will Follow Kathy Carr on Twitter: be available at Bier Markt, which he twitter.com/kathy_carr. said has experienced double-digit
ON THE WEB Crain’s What’s Cooking blog appears on our web site each Monday. Visit www.CrainsCleveland.com for the latest news from the restaurant industry.
By JERRY GEISEL Business Insurance
More than one in three employers have at least some employees for whom coverage would be considered “unaffordable” under the new health care law, according to a new analysis. Under a provision of the law that begins in 2014, employers are subject to stiff penalties if premiums paid by full-time employees exceed 9.5% of their household income. The annual penalty for unaffordable coverage is $3,000 for each full-time employee who receives government assistance and uses it to buy coverage in state insurance exchanges, up to a maximum of $2,000 times all of an employer’s full-time workers, excluding the first 30. Using information obtained from its 2009 health care cost survey of nearly 3,000 employers, New Yorkbased benefit consultant Mercer LLC estimates that 38% of employers have at least some employees who pay premiums of more than 9.5% of household income, thereby exposing employers to the penalties unless they reduce affected employees’ premium contributions. The likelihood of employers
offering unaffordable coverage is inversely related to employer size, with smaller employers having a higher percentage of workers paying more than 9.5% of household income. For example, 20% of employers with more than 20,000 employees have at least some employees paying more than 9.5% of household income, compared with 38% of employers with between 10 and 499 employees. The affordability provision will be one of the more challenging ones for employers to interpret, Mercer notes. “Lawmakers did not take into account that employers don’t have access to information on employee household income,” said Tracy Watts, a partner in Mercer’s Washington office, in a statement. “Employers question how they are going to get that information and what other administrative challenges might come along with this new requirement. For example, what happens if an employee’s total family income changes during the course of a plan year?” Ms. Watts asked. Numerous other provisions of the law will force employers to make design changes or face penalties. For example, the law requires employers to offer affordable coverage
to employees who work at least 30 hours a week. However, Mercer, in its analysis, found that only 51% of employers with at least 500 employees offer coverage to part-time employees who work at least 30 hours a week. The rest either don’t cover any part-time employees, require them to work more than 30 hours a week to be eligible or impose other eligibility requirements. “This rule will require employers with a lot of part-time employees to make some hard choices,” Ms. Watts said. “If they don’t offer coverage to part-timers, can they afford to start, or to raise the minimum hours required for coverage?” The Mercer analysis also found 71% of employers with at least 500 employees now impose a lifetime dollar limit in at least one of their preferred provider or point-ofservice plans, which will be illegal beginning on Jan. 1, 2011. The median lifetime dollar limit now is $2 million. On the other hand, only 22% of large employers with HMOs have a lifetime dollar limit. ■ (Jerry Geisel is editor-at-large at Business Insurance, a sister publication of Crain’s Cleveland Business.)
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PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Get down
V
arious school districts across Northeast Ohio will go through their periodic mating dances with taxpayers this week as they ask voters to approve tax levies that support schools in their communities. And, as often happens in these elections, many voters will spurn their districts and vote down the levies, leaving administrators to lop staff, reduce or suspend busing or make other cuts to their budgets. This ritual has gotten old, though it’s becoming harder to argue that taxpayers should back their districts if for no other reason than to maintain the property value of their homes. No one doubts that strong schools make for strong communities. But strong schools come at a cost, and at a time when their own employers have taken back some of their pay or have let them go, more people aren’t inclined to pay it. With the state struggling to make ends meet and likely to face a multibillion-dollar deficit when putting together its next two-year budget in 2011, school districts can’t look to Columbus for financial aid. The situation begs for cash-constrained districts to take dramatic steps to operate more efficiently if they hope to provide a quality product to students and their families. And by dramatic, we mean exploring every opportunity for collaboration and — dare we say it? — consolidation. The Brookings Institution think tank and the Greater Ohio Policy Center make this very point in their recently issued study, “Restoring Prosperity: Transforming Ohio’s Communities for the Next Economy.” The numbers presented in the study tell why. According to the study, Ohio ranks 47th in the nation in the share of elementary and secondary education spending that goes to instruction and ninth in the share that goes to administration. “More pointedly, Ohio’s share of spending on school district administration (rather than school administration such as principals) is 49% higher than the national average,” the study states. These are sickening figures, and there frankly is no good excuse for them, especially when it is within the power of the state and the school districts to change them with some forward thinking. The Restoring Prosperity study says the Ohio Department of Education “should encourage, and ultimately require,” school districts to share services ranging from personnel to health care. The state could promote this process by assisting districts looking to collaborate and by setting up a competition to help fund promising initiatives. The study also recommends that the governor and Legislature appoint an education reorganization commission with two tasks. The first would be to undertake a well-staffed study of the current costs of K-through-12 administration and to propose ways individual districts can reduce those costs. The second would be to develop a plan to reduce by at least one-third the number of school districts in Ohio from the current 611. Education is too top-heavy in Ohio. The process of putting more dollars into the classroom and fewer into administration can’t begin soon enough.
FROM THE PUBLISHER
Spotlight on city’s tussle with GE arm
T
of LED light bulbs for 10 years if the comhese days Michael Petras must pany builds a manufacturing plant, research be thinking something like, “So facility and its U.S. headquarters here. this is how the car company Not so fast, said Mr. Petras, in a harshly CEOs feel.” worded letter to the mayor quoted last Mr. Petras is president and chief week by The Plain Dealer. executive officer of GE Lighting, the unit “It is a slap in the face of every that has been a stalwart employer in East employee in GE Lighting — and to their Cleveland for decades. GE has been a families and friends — to be solid civic partner and untold denied any opportunity to bid thousands of Clevelanders BRIAN on providing those products,” know it from the lavish holiday TUCKER the newspaper quoted his letter lighting display at its Nela Park as saying. campus on the East Side. Not to discount GE, which Few probably thought much employs 700 at Nela Park and about it when Mayor Frank another 30 at a Cleveland plant, Jackson mentioned in his State but this is what has been of the City speech that Cleveland happening for decades in was trying to attract the American America, thus my comparison headquarters of a Chinese to the “legacy” carmakers. How company, Sunpu-Opto Semido you think the brass at GM, Ford and conductor Ltd. After all, most probably Chrysler felt as they watched state after thought, cities are constantly trying to state throw lavish tax incentives and free attract foreign companies and the jobs infrastructure and land to the Asian and they offer. And the success rate is rarely German carmakers who brought their high because of the rabid competition. manufacturing facilities here? Then, in the past week or so, it became For his part, the mayor responded by public that the mayor offered the Chinese saying that GE doesn’t make the product the opportunity to be the city’s sole supplier
that the city envisions buying from the Chinese company and added that GE, which has reduced its work force here over the years, could not commit to the same amount of new facilities proposed by the Chinese company. The mayor claims his administration thoroughly checked whether GE could provide the lights the city wants to install, and found that it could not, and that only the Chinese company could meet the specifications drawn up by the city in its plan to replace its 67,000 street lights with more-sustainable products. GE Lighting then issued a statement disputing the city’s claim that only the Chinese company could provide the products Cleveland needs, claiming that GE has municipal lighting across the country and that other competitor companies have similar products. I hope Mr. Petras takes into account the pressure that Mayor Jackson is under to create new jobs here. Perhaps the two should meet to determine if there’s a role for GE Lighting in the city’s plans even if the Chinese come here. Cleveland needs a two-sided win, desperately. ■
PERSONAL VIEW
Port ‘reorientation’ plan deserves cynicism By DOMINIC LoGALBO
F
or those of us who have attended the Cleveland-Cuyahoga County Port Authority meetings over the last two and a half years, you had to read Jay Miller’s April 12 story on the port’s effort to reorient itself with measured cynicism. To package the port authority’s efforts — downsizing of staff, refocusing on basics and abandonment of unattainable plans — as a reorientation is simply the result of an expensive public relations program designed to buy time while the board wipes the bewilderment from its eyes. The same folks who are reorienting are the ones that approved a plan to build a new port at East 55th Street without having any idea what it would cost or where they
Dominic LoGalbo was an executive with the Cleveland Stevedore Co. and was the founding commodore of the East 55th Yacht Club. would get the money. They put the plan in place and then paid Adam Wasserman, the former president, more than $300,000 to execute it. The board watched like the passengers on the Titanic as Mr. Wasserman spent more than a year and a half trying to make a go of what would become an impossible and expensive mission. When it finally dawned on Mr. Wasserman that the plan was unworkable, he had the good sense to resign, take $300,000 of public money to remain silent, and left the board with the largest mess in its history. This same board, as part of a public
relations plan, recently took an oath of transparency but still refuses to explain the payoff to Mr. Wasserman. Worse yet, despite the fact that Mr. Wasserman’s efforts proved the plans to be both unworkable and unfundable, the board and Mayor Frank Jackson talk about a reorientation of priorities and still hold out the dream of East 55th Street. What was interesting in the Crain’s article was the surfacing of Mayor Jackson. It is now apparent that he played a key role in the development of the plan in an effort to create a legacy for his time in office. Since he appoints the majority of the board, it is reasonable to assume that the board rubber stamped these ill-founded plans rather than making a recommendation to the mayor, as is stated in the article. See VIEW Page 11
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
AND COUNTING ... What’s your favorite building preservation or adaptive reuse project of the last 30 years in Northeast Ohio?
Crain’s Cleveland Business is celebrating its 30th year as Northeast Ohio’s premier source of business news with a special double issue, which will feature profiles of the 30 most influential Clevelanders. As part of the celebration, we also are reflecting on the most memorable events of the past three decades with weekly polls — some of which can be found in this space — trivia questions, online content and video interviews. You can get in on the fun by visiting Crains Cleveland.com/30th anniversary.
Taking care of business. Pet waste contains millions of bacteria that pollute our lake and streams. So pick it up, pitch it in the trash, and protect our environment. Because it’s the right thing to doo.
KENNY HUGGINS
JIM DEESE
DUANE COX
Cleveland
Bay Village
Shaker Heights
I like the old Stouffer Building on Euclid Avenue. My father used to work there, and I used to see the Cleveland Ballet practice there. I’ve been away for several years and found they totally renovated it (as the Idea Center, 1350 Euclid Ave.).
I have to say the Hoyt Block Building (700 W. St. Clair). I worked across the street 30 years ago and remember watching workers clean up the outside. It was an old dirty red building that only had a restaurant on the first floor at that point.
As a Clevelander, it has to be that one (pointing at Terminal Tower). It looks better than ever. It was dark and ugly. Now it’s beautiful again.
View: Port authority’s future murky continued from PAGE 10
It is also clear now that Mayor Jackson approved the scrapping of a previous waterfront plan and introduced the East 55th plan without any public hearings or community input. To say, as the article does, that the East 55th Street site was less expensive to construct than the one originally considered north of the present port is simply not true. Freedom of Information requests show that Mr. Wasserman personally halted a study that would determine the cost of the originally proposed site so that no comparison could be made. Then, lost in its schemes and City Hall politics, the board failed to realize it had not paid attention to the fact that the Cuyahoga River needed to be dredged in order for shipping to make its way to the steel mills. Suddenly, thousands of jobs are in jeopardy, putting the city at further economic risk. The aimless port authority has no idea where to get the $133 million it is going to need to pay the Army
Corps of Engineers to clear the river. Peter Raskind, the interim president of the port authority, is calling for a community effort to pay for what some of us figure will be nearly a $1 billion port at East 55th Street. And yet, there is no study that can prove that there is enough shipping business on the Great Lakes to justify such an expense. What is more frightening to the future of the port authority is that next year its operating levy is before the public. One easily can argue the board’s record hardly deserves support at the polls. To further complicate matters, a new county government system will be in place, raising the question of where the port authority stands. With Cleveland losing population and political clout, it may be time for the county to take control of the port authority through the majority of appointments. It’s clear that by papering over its failures with a $10,000-a-month public relations campaign, the board is still not grasping reality. In a few years it has crippled an orga-
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nization vital to our economic wellbeing, and it has no solid plan for recovery. All the things Mr. Raskind touts as reorganization are things that never should have occurred in the first place if an alert and responsive board was dealing with reality. ■
WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 e-mail: mdodosh@crain.com
Northeast Ohio Regional Sewer District
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Healers. Volunteers. Friends. They’re known by many names. Today, we’re recognizing them as heroes.
University Hospitals recognizes and celebrates the physicians, employees and volunteers who deliver the very best patient experience each and every day, including these 2010 Crain’s Health Care Heroes finalists: Joseph Baar, MD, PhD Director, Clinical Breast Cancer Research, University Hospitals Ireland Cancer Center at University Hospitals Case Medical Center, and Associate Professor of Medicine, Case Western Reserve University School of Medicine
joAnne de Hamel President, Family Advisory Council, University Hospitals Rainbow Babies & Children’s Hospital
Michael Devereaux, MD Neurologist, University Hospitals Case Medical Center, and Professor of Neurology, Case Western Reserve University School of Medicine
These exemplary individuals truly Make the Difference in the lives they touch. Congratulations to all of Cleveland’s Health Care Heroes!
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Speedy data compilation has Solon marketer on the move Need for fast results has firm’s database capabilities in demand By CHUCK SODER csoder@crain.com
Seeing what Speedeon Data Corp. could do made George Monnier believe in the power of so-called “new mover” marketing programs. So much so that he now sells the Solon company’s services. The database marketing firm’s ability to rapidly compile names, addresses and phone numbers of people who have just moved has helped the company land several Fortune 500 clients even though it’s just 2 years old. Other companies compile similar data, which is valuable to marketers because people often need new
products and services after they move. Speedeon stands out because it gets more data faster, said Mr. Monnier, executive vice president of sales with direct marketing firm Acton Marketing LLC of Lincoln, Neb. Speed is important because “new movers” don’t wait long to, say, outfit their homes, open bank accounts or order Internet service, said Mr. Monnier, who used to work at a different database marketing company. “They’re making that decision pretty dog-gone quick,” he said. Today Speedeon lists nine of the 10 biggest U.S. banks as its clients, in addition to several major retailers and other companies. Speedeon employs 11 at its headquarters on
Parkland Boulevard and a handful of contract sales representatives across the nation, said company president Gerard Daher. “That’s not too bad for a company that’s 2 years old,” he said. Speedeon says it needs less than a week to get a piece of marketing material into a home after a new resident arrives. By contrast, the company estimates that other similar programs usually take about 18 days. Mr. Monnier said that estimate appears accurate. Mr. Daher attributed the difference to many larger database marketing firms focusing less on new mover programs, while smaller companies rarely have the tech-
nology to pull data from 3,000 sources every night. “The bar is pretty low,” he said. Before starting Speedeon, Mr. Daher, who worked in the database marketing industry for four years, tried to buy a database marketing unit of a Fortune 500 company. A private equity firm ended up outbidding Mr. Daher’s group of investors, but those investors agreed to back his new venture. To replace a larger chunk of bank financing, Mr. Daher brought on Dale Sparber, a former bank executive who owns two Great Clips salons, part of a few night clubs and part of a manufacturing firm in Cheboygan, Mich. Mr. Sparber, who is now Speedeon senior vice president, also helped connect Speedeon with Great Clips Inc. The Minneapolis company has
Auto repair shops contest legislation limiting purchasing power By TIRE BUSINESS STAFF
COLUMBUS — The Ohio Tire & Automotive Association is urging lawmakers in the state Legislature to reconsider the language of bills pending in both houses that would prohibit non-franchised, automotive-related facilities from purchasing parts of original equipment manufacturers. The proposed legislation, Ohio
House Bill 364 and Senate Bill 204, is meant to protect franchised car dealers who have had their franchises terminated. But state association president John Miller Jr. said the bills, as drafted, “will limit consumer choice on automotive repair or replacement by not allowing our businesses access to OEM parts.” “It is my hope that the members of Ohio’s General Assembly see the wisdom in removing the damaging
provision,” Mr. Miller said. “Many Ohioans use our facilities. Why limit their choice?” The association is urging its members and the general public to contact their Ohio House and Senate members informing them of the issue, according to Tom White, first vice president of the association. “This bill says that as an automotive repair business owner, I am no longer allowed to carry the breadth
of products needed to maintain my competitiveness in the overall auto repair industry,” Mr. White said. “Our ability to stay in business is greatly reliant on the consumers’ right to choose, which may include the use of original equipment manufactured parts.” Gordon Gough, executive director of the association, said a provision in the bill could handcuff auto repair facilities from participating in recall
had new mover programs for years but decided to use Speedeon’s database after testing it last year, said Heather Briggs, director of marketing planning for Great Clips. “The Speedeon data did provide more names of new movers and better results,” Ms. Brigg said. Speedeon eventually might add more services but for now will focus on providing data on new movers and people who are about to move, as well as services that allow retailers to get customers’ names and address with only a phone number. The company sees opportunities with both new and existing customers, Mr. Daher said, noting that the company is in “an eighth of an inch deep” with some of its bigger clients. “We’re going to continue to hire (and) continue to grow,” he said. ■
programs that necessitate OEM parts for make-good repairs. “For example, based on this bill, if there were a large recall for OEM tires or some other OEM part in a brand of vehicles, non-franchised automotive parts and service facilities in Ohio would not be allowed to participate in fixing recalled vehicles,” Mr. Gough said. “This could potentially cause an incredible backlog of vehicles awaiting recall service if this law is in place.” ■ (Tire Business is a sister publication of Crain’s Cleveland Business.)
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TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Date filed: April 2, 2010 Type: Employer’s withholding Amount: $28,796 America’s Lending Solutions Ltd. 7055 Engle Road, Suite 501, Cleveland ID: 64-0956296 Date filed: April 27, 2010 Type: Employer’s withholding Amount: $26,908 Herb’s Trucking Inc. 1691 Sherwood Blvd., Euclid ID: 56-2445848
Date filed: April 7, 2010 Type: Corporate income Amount: $26,498 Konstanzer Masonry Inc. 514 Dover Road, Bay Village ID: 34-0967162 Date filed: April 20, 2010 Type: Employer’s withholding Amount: $25,400 Forum Architectural Services LLC 1138 W. Ninth St., Suite 200, Cleveland ID: 26-3647659 Date filed: April 12, 2010 Type: Employer’s withholding
Amount: $23,425 Eagle Precision Products LLC 13800 Progress Parkway, Unit J, North Royalton ID: 58-2672418 Date filed: April 15, 2010 Type: Employer’s withholding Amount: $22,115 St. Clair Tire Inc. 10228 St. Clair Ave., Cleveland ID: 34-1561780 Date filed: April 15, 2010 Type: Employer’s withholding, unemployment Amount: $20,706
Green Thumb Florists Garden Center and Landscapers Inc. 11515 Lorain Ave., Cleveland ID: 34-1824632 Date filed: April 22, 2010 Type: Employer’s withholding, unemployment Amount: $18,149 PMG Patrick Management Group Inc. 1991 Crocker Road, Suite 600, Cleveland ID: 20-2320314 Date filed: April 27, 2010 Type: Employer’s withholding Amount: $18,131
Azula Corp. Sterling Health Services 5000 Rockside Road, Suite 230, Independence ID: 34-1961961 Date filed: April 7, 2010 Type: Employer’s withholding, unemployment Amount: $146,106 Visual Evidence E-Discovery LLC 1382 W. Ninth St., Cleveland ID: 20-3037467 Date filed: April 27, 2010 Type: Employer’s withholding Amount: $107,000 D & D Painting Co. 15634 Harrison Drive, Brook Park ID: 20-1164446 Date filed: April 22, 2010 Type: Employer’s withholding, unemployment Amount: $106,961 Disaster Restoration Management Inc. Servicemaster of Shaker 4530 Renaissance Parkway, Cleveland ID: 34-1942028 Date filed: April 22, 2010 Type: Employer’s withholding Amount: $78,330 Kraft Builders LLC 29444 Euclid Ave., Room 5, Wickliffe ID: 20-8674935 Date filed: April 12, 2010 Type: Employer’s withholding, unemployment Amount: $57,786 Azula Corp. Sterling Health Services 5000 Rockside Road, Suite 230, Independence ID: 34-1961961 Date filed: April 7, 2010 Type: Unemployment, failure to file complete return Amount: $55,241 Jada Trading Co. 7655 Akins Road, North Royalton ID: 34-1935242 Date filed: April 27, 2010 Type: Employer’s withholding Amount: $54,657 Arrow Landscaping & Construction Inc. 308 Richmond Road, Richmond Heights ID: 34-1856436 Date filed: April 27, 2010 Type: Employer’s withholding, unemployment Amount: $50,507 Kulture Kids 2163 Lee Road, Suite 104, Cleveland Heights ID: 34-1903856 Date filed: April 20, 2010 Type: Employer’s withholding, failure to file complete return Amount: $45,039 Agape Home Health Care 540 E. 105th St., Suite 3058, Cleveland ID: 06-1725145 Date filed: April 12, 2010 Type: Employer’s withholding, failure to file complete return Amount: $35,369 Skiba Inc. Subway 12598 Rockside Road, Garfield Heights ID: 34-1611668
Your doctors. Your hospitals. Health Insurance for Your Business. SummaCare’s network includes the doctors and hospitals your employees want to see. With SummaCare, your employees have access to more than 50 of the region’s finest hospitals, including the Cleveland Clinic Health System, University Hospitals and Summa Health System. Plus, our network includes nationwide coverage that follows your employees wherever they may reside or travel. To learn more about SummaCare, call your agent today or visit www.summacare.com.
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GOING PLACES JOB CHANGES ARCHITECTURE THENDESIGN ARCHITECTURE: Kurt P. Hanson to project coordinator.
EDUCATION NOTRE DAME COLLEGE: Brian Johnston to chief communications officer.
MARKETING
ERNST & YOUNG: Walt Bieganski and Julie Boland to executive directors.
CUNNINGHAM BARON LLC: Ashley M. Doles to art director, interactive media.
MAI WEALTH ADVISORS: Chelsea Wang and Kathryn Haneberg to associates; Doug Butler to director and portfolio manager.
HITCHCOCK FLEMING & ASSOCIATES INC.: Jaime Brannan to senior account manager; Matthew Lint to account manager; Enrique Espinetti to assistant account manager; Dave Baugh to account coordinator.
Learn how our alumni engage at: www.csuohio.edu/alumni
PACKER THOMAS: Ralph T. Meacham to CFO, director of operations.
NONPROFIT
HEALTH CARE
NORTHEAST OHIO COUNCIL ON HIGHER EDUCATION: Sean McKinniss to program manager.
SUMMA HEALTH SYSTEM: Marvin Klinker to system director, surgical services.
INSURANCE MEDICAL MUTUAL OF OHIO: Tom Stepec to director, internal audit and assistant general auditor.
LEGAL BROUSE MCDOWELL: Suzana Krstevski Koch to associate.
VISITING NURSE ASSOCIATION: Cynthia Struk to associate chief clinical officer.
RETAIL PAYSAGE: Denise Sindelar to sales manager.
SERVICE HEALTH DESIGN PLUS: Sandra L. Pogozelski to director, appeals and grievances.
Information: 216.383.2222 or 800.707.8922 Hospice Connect: 800.707.8921 hospicewr.org Serving Northern Ohio with offices throughout Ashtabula, Cuyahoga, Geauga, Lake and Lorain Counties.
Boland
Richmond
Klinker
Stepec
Doles
Asbeck
Sindelar
Pogozelski Sedor
Thigpen to first vice president; Mikelann Ward Rensel to second vice president; Vickie Eaton Johnson to secretary; Linda Warren to treasurer. CUYAHOGA ARTS & CULTURE: Steven A. Minter to president; Christopher Coburn to vice president; Vickie Eaton Johnson to secretary.
METALWORKING SERVICES INC.: Emily Lipovan to executive director.
OHIO STATE MEDICAL ASSOCIATION: Dr. Richard R. Ellison (Summit Ophthalmology) to president.
TREMONT ELECTRIC: Jill LeMieux to vice president of marketing; Dave Young to electrical engineer.
AWARDS
DATAFORGE LLC: David Collins to account executive.
hank you for your whole-hearted dedication to patients and their families facing a serious illness.
Bieganski
CLEVELAND FOUNDATION: Kate A. Asbeck to senior vice president, CFO.
TECHNOLOGY
CONGRATUL ATIONS Beth Shapiro, MSSA, LISW-S Health Care Hero for Allied Health
Fraser
DVUV LLC: Jack Garforth to operations manager.
FINANCIAL SERVICE
METROHEALTH SYSTEM: Craig S. Richmond to vice president, revenue cycle.
Hanson
MANUFACTURING
FIRST FEDERAL OF LAKEWOOD: Thomas J. Fraser to executive vice president.
MORGAN STANLEY SMITH BARNEY: Kent D. Hageman to branch manager.
MARCIA FUDGE CONGRESSWOMAN CLASS OF ‘83
ZASHIN RICH CO. LPA: Roy E. Lachman to chair, Class, Collective and Multidistrict Actions Group.
LASZERAY TECHNOLOGY INC.: Mike Marino to staff accountant; Emily Wallace to purchasing manager; Stephen Stephano to production control.
FINANCE
Achieve.
MEYERS, ROMAN, FRIEDBERG & LEWIS: Steven P. Dlott to chair, Workers’ Compensation Group.
NATIONAL KIDNEY FOUNDATION: Dr. John Sedor (MetroHealth System) received the David M. Hume Memorial Award.
BOARDS
OHIO STATE MEDICAL ASSOCIATION: State Sen. Kevin Coughlin received the Voice of Medicine Award.
CLEVELAND ACTION TO SUPPORT HOUSING: Lawrence Slenczka (Dollar Bank) to president; Charles
Send information for Going Places to dhillyer@crain.com.
Investing awareness plays role in significant contribution jump By TIMOTHY INKLEBARGER Pensions & Investments
Assets in U.S. defined benefit and defined contribution plans were up a combined 18% to $9.3 trillion in 2009, according to a Spectrem Group report. Defined contribution plans, which represent 49% of all retirement assets, increased 19% to $4.5 trillion last year. Seventy-one percent of plan assets were in 401(k)s, which increased 20% to $2.3 trillion in 2009. The report did not provide a detailed analysis of defined benefit assets. Gerald O’Connor, a director at Spectrem Group, said in a telephone interview that the percentage of participants saying they would like more advice and assistance with investment decisions increased to
58% in 2009, from 26% in 2008. “When we’ve asked people (in prior years) if they would like more advice, we have seen numbers in the mid- to high 20s; in December 2009, it leaped to over 50%,” Mr. O’Connor said. “I was not surprised to see the jump; I was a little surprised at the magnitude of it.” Mr. O’Connor said participants are “paying more attention to the article in the local newspaper about investing, talking to co-workers or signing on with an adviser.” The annual study is based on data derived from public and private plans as well as Spectrem surveys. ■ (Timothy Inklebarger is a reporter with Pensions & Investments, a sister publication of Crain’s Cleveland Business.)
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CRAIN’S CLEVELAND BUSINESS
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H-1
A
n independent panel of judges reviewed more than 100 nominations this year as part of the selection process for the 2010 Health Care Heroes awards. The judges were: Lois A. Bowers, managing editor of Medical Economics; Martha K. Raymond, a registered nurse and managing editor of Contemporary Pediatrics; Sheryl Stevenson, managing editor of Ophthalmology Times; Julia Talsma Kotowski, a medical marketing consultant; Tracey Walker, managing editor of Formulary; and Ron Rajecki, a freelance writer with 25 years of experience in the trade press for titles such as Modern Medicine. The judges took into account nominees’ leadership, approach to health care and philanthropy/community service in selecting this year’s 27 finalists. And while the region as a whole is known for its strength in the health care field, individuals and organizations like those selected by the judges are the ones working and advancing the sector. They are truly Northeast Ohio’s …
THE FINALISTS ADVANCEMENTS IN HEALTH CARE
ALLIED HEALTH
NURSE
DR. JOSEPH BAAR, director, breast cancer research; associate professor; Ireland Cancer Center, University Hospitals Case Medical Center, Case Western Reserve University School of Medicine H-2
JULIE BURNETT, social worker, In-House Hospice H-4
NonHospital Setting
DR. HEATHER GORNIK, Staff physician in cardiovascular medicine/medical director of the noninvasive vascular lab, Cleveland Clinic H-4
MARJORIE CORNELL, case manager, Eliza Jennings at Home Clinic, Westerly Apartments H-7
DR. AMY HISE, assistant professor, Center for Global Health and Diseases, Case Western Reserve University School of Medicine H-2
BETH SHAPIRO, social worker, Hospice of the Western Reserve H-5
DR. CHRISTINE ZIRAFI, cardiologist/medical director of cardiac catheterization services, Parma Community General Hospital H-2
EMPLOYER ACHIEVEMENT IN WELLNESS
HEALTH CARE ADVOCATE
HERBRUCK ALDER H-6
Individual
INFOCISION MANAGEMENT CORP. H-6
LAURA MATTHEWS, ElderCenter manager, Parma Community General Hospital H-3
NURSE
HELEN MOSS, founder and managing trustee, The Helen Moss Breast Cancer Research Foundation H-3
Hospital Setting
RICHARD SCHWALBERG, administrator, Menorah Park Center for Senior Living H-3
Organization LOUIS STOKES CLEVELAND VA MEDICAL CENTER, Dr. Chester H. Ho, chief, spinal cord injury, H-4 SISTERS OF CHARITY HEALTH SYSTEM H-4 VOICES FOR OHIO’S CHILDREN H-4
RECOVERY RESOURCES H-6
BEVERLY A. BOKOVITZ, senior vice president and chief nursing officer, Akron General Health System H-6 CHRISTINE F. NELSON, coordinator, SeniorCare Assessment Center, Lakewood Hospital H-6 MICHELE REALI-SORRELL, assistant nurse manager, nurse educator, Huron Hospital H-6
ZHANNA KHALAFYAN , registered nurse, Providence Home Health Care H-8 ADRIANA T. WHELAN, nurse practitioner, The Free Medical Clinic of Greater Cleveland H-8
PHYSICIAN DR. ROGER CHAFFEE, Medical director, OPEN M Free Health Clinic H-8 DR. CHESTER H. HO, Chief, spinal cord injury, Louis Stokes Cleveland VA Medical Center H-8 DR. ELLEN ROME, head of the section of adolescent medicine; associate chief of staff, Cleveland Clinic H-8
VOLUNTEER JOANNE DEHAMEL, president, Family Advisory Council, University Hospitals Rainbow Babies & Children’s Hospital H-9 DR. MICHAEL DEVEREAUX, University Hospitals Case Medical Center; professor, Department of Neurology, Case Western Reserve University H-9 DR. NICHOLAS MARKO, neurosurgery resident, Cleveland Clinic H-9
Winners will be announced during a May 6 luncheon at Downtown Marriott at Key Center.
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How do your
employee benefits stack up?
CRAIN’S CLEVELAND BUSINESS
DR. JOSEPH BAAR Director, breast cancer research; associate professor Ireland Cancer Center, University Hospitals Case Medical Center/ Case Western Reserve University School of Medicine FROM THE NOMINATION:
D
r. Joseph Baar is a leader in the study of breast cancer. The director of breast cancer research for University Hospitals Case Medical Center, Dr. Baar has devised new methods to treat and prevent the Baar disease. In September 2009, he launched a Phase One study
ADVANCEMENTS IN HEALTH CARE looking into the use of a new vaccine to potentially prevent the recurrence of triple negative breast cancer. He hopes the trial will show that the vaccine he has developed will shut down the tumor’s ability to grow. Triple negative breast cancer is highly aggressive and makes up 10% to 15% of newly diagnosed earlystage breast cancer. Most triple negative tumors are high grade and have a high incidence of recurrence. Unlike other types of breast cancer, there is no standard followup to prevent recurrence. A graduate of the University of Western Ontario Medical School, Dr. Baar also is studying the use of anti-angiogenic agents for metastatic breast cancer.
MAY 3-9, 2010
“(Dr. Baar) inspires his colleagues, patients and the entire cancer community through his unwavering commitment to pioneering new treatments.” “Dr. Baar is an innovator in his field, devising new methods to treat and prevent breast cancer,” said the nomination. “He inspires his colleagues, patients and the entire cancer community through his unwavering commitment to pioneering new treatments for this deadly disease.” In addition to his work at the medical center, Dr. Baar is active in a number of scientific and medical organizations and is on the board of directors of the Karen P. Nakon Breast Cancer Foundation, a foundation in Avon that funds breast cancer research.
“Regardless of the role Dr. Hise is playing she consistently and compassionately makes time for others and strives to improve the quality of life for people in need.”
DR. AMY HISE Assistant professor, Center for Global Health and Diseases Case Western Reserve University School of Medicine FROM THE NOMINATION:
Go to www.herbruckalder.com to complete the 2010 National Mid-Market Employee Benefits Survey. Receive a detailed custom report comparing your employee benefit programs to local and national companies at Herbruck Alder’s results seminar on June 3rd at the Embassy Suites Cleveland Rockside. CONTACT ALISON MUTH AT 216.377.2595 OR AMUTH @ HERBRUCKALDER. COM TO REGISTER FOR THE EVENT .
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indings by Dr. Amy Hise could open up doors to new research in fungal infections, ultimately leading to new drugs and therapies. Dr. Hise recently led a team of researchers to the discovery of how the body fights off oral yeast infec-
ADVANCEMENTS IN HEALTH CARE tions caused by the most common human fungal pathogen, Canidida. “Dr. Hise is an inspiration to students and colleagues and her work is continually driven by a resilient compassion for people,” the nomination said. “Regardless of the role Dr. Hise is playing she consistently and compassionately makes time for others and strives to improve the quality of life for people in need.” Dr. Hise, who also works as a part-time staff physician in the emergency medicine department at the Louis Stokes Cleveland VA Medical Center, also is known for her dedication to mentoring
ADVANCEMENTS IN HEALTH CARE
DR. CHRISTINE ZIRAFI Cardiologist/medical director of cardiac catheterization services Parma Community General Hospital FROM THE NOMINATION:
D
r. Christine Zirafi has led an effort at Parma Community General Hospital that has cut average “door-to-balloon” times by more than half — to 51 minutes from 119 minutes — through an ongoing team approach. The effort “begins with transmission of 12 lead EKGs by the EMS squads,” according to Dr. Zirafi’s nomination form. Zirafi “The Code STEMI (ST segment elevation myocardial infarction) process has been hardwired into Parma Hospital’s care delivery system, allowing the hospital to sustain average door-to-balloon times that consistently beat the American
Dr. Zirafi has been at the center of the hospital’s efforts to bolster all manners of cardiac care. College of Cardiology goal of 90 minutes.” Parma’s Code STEMI system “garnered regional and national attention before all area hospitals began talking about such a process,” the nomination states. Dr. Zirafi has been at the center of the hospital’s efforts to bolster all manners of cardiac care. For instance, she was “one of the interventional cardiologists who pushed for the addition of cardiac surgery and highrisk catheterization capabilities, which led to the construction of the Heart Center in 1999,” the nomination states. “That program now sets standards for efficiency and teamwork in emergency response times.” As a result of the Heart Center’s addition, the nomination states, Parma patients “no longer have to leave their community for top-notch care; their care is setting new quality standards.”
students and offering guidance to high school and undergraduate students who are interested in science and medicine. “She recognizes every small moment as an opportunity to teach, learn, grow and change,” Yvonne Chasser, a Case Hise Western Reserve University School of Medicine student, is quoted as saying in the nomination. “She has certainly taught me much and I hope that my career as a doctor will testify to her time spent, capturing the small moments, changing lives.”
LAST YEAR’S WINNERS The Health Care Heroes Class of 2009 included 22 finalists in six categories. An independent panel of judges selected the winners: ■ Advancements in Health Care Dr. Sanford Markowitz, Case Western Reserve University School of Medicine, University Hospitals Rainbow Babies & Children’s Hospital ■ Health Care Advocate Dr. May L. Wykle, Case Western Reserve University Frances Payne Bolton School of Nursing ■ Allied Health Deforia Lane, Ph.D., University Hospitals Case Medical Center ■ Physician Dr. Richard Grossberg, Hattie Larlham ■ Nurse Linda O’Donnell, Fairview Hospital, Cleveland Clinic Health System ■ Volunteer Edward Jimenez, DDS, The Free Medical Clinic of Greater Cleveland
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LAURA MATTHEWS
RICHARD SCHWALBERG
ADVOCATE — INDIVIDUAL
ElderCenter manager Parma Community General Hospital
One of the initiatives, Designed Around You (DAY) is an eightweek program targeting recently hospitalized patients’ transition FROM THE NOMINATION: back into independent living. Ms. Matthews also has been arma Community honored by the Western General Hospital’s Reserve Area Agency on Laura Matthews Aging for her work in destands out among signing innovative opporthe crowd, both in terms tunities for older adults. of her service and her “Laura has had the accomplishments. perseverance to develop “Laura Matthews’ and see projects through to irrepressible enthusiasm, completion where someone energy, tenacity and keen Matthews else might have turned and understanding of the older walked away,” said Gail adult population set her apart as a Swiger, the director of community leader,” the nomination said. health at the Parma hospital, in the Ms. Matthews not only has form nominating Ms. Matthews. been awarded Parma Community General’s Service Excellence award, she has the highest percentage of hospital employees earning Pillar of Excellence and Wellness awards. In addition to running the ElderCenter adult day care, Ms. Matthews has helped spark the development of several other hospital programs.
ADVOCATE — INDIVIDUAL
Administrator Menorah Park Center for Senior Living FROM THE NOMINATION:
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“(Mr. Schwalberg) has been characterized by leaders of associations as ‘a tiger.’”
For example, Mr. Schwalberg has visited with members of Congress to educate them about the impact aquatic and land-based therapies for of therapy caps and legislation that adults. He also began the first would reduce Medicaid and comprehensive assistive Medicare funding. product store and rental He also has mobilized library in Ohio to help staff, residents and clients disabled and aging adults. to write letters to legislators. “Measures during his “He has been charactertenure have ranged from ized by leaders of associaannual family satisfaction tions as ‘a tiger, whose surveys to having a U.S. persistence and vigilance Postal Service mailbox so are key ingredients toward residents can mail their successful advocacy,’” the Schwalberg own letters,” the nominanomination said. tion said. “Richard continuously exAmong other achievements, Mr. plores and implements programs Schwalberg in 2000 led the developthat will improve the quality of life ment of the Peter B. Lewis Aquatic & and access to services.” Therapy Center, which provides
Founder and managing trustee The Helen Moss Breast Cancer Research Foundation FROM THE NOMINATION:
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hen Helen Moss found out she had breast cancer nearly 10 years ago, she decided she was going to be far more than a patient or victim. She conceived the idea for the Helen Moss Breast Cancer Research Foundation that day. When Ms. Moss — who is celebrating her ninth year as a metastatic breast cancer ADVOCATE — survivor — had terrible reactions INDIVIDUAL to the chemotherapy and radiation treatments she received, the foundation was given a mission: reduce the pain and suffering of all those affected by the disease, including not only Moss the patients, but their loved ones as well. “Having experienced the worst effects of chemotherapy and radiation, Moss realized that it was not enough for a cancer treatment to save the patient’s life: The patient’s life had to be worth living, even during the throes of treatment,” the nomination said. The foundation has worked with both cancer patients and care providers to develop ways to better enable patients to endure and recover from traditional treatments, while also encouraging the study of new and alternative treatments. In 2010, Ms. Moss will take her advocacy a step further, with the establishment of the Helen Moss Cancer Research Foundation professorship at the Case Western Reserve University School of Medicine.
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y definition, an administrator is one who administers or manages an organization. But for Richard Schwalberg, those roles only are part of his job. Mr. Schwalberg has been recognized not only for managing the largest long-term care community in Northeast Ohio, according to the nomination, but for immersing himself into advocacy efforts for aging patients.
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ADVOCATE — ORGANIZATION
A Special Kind of Caring in the Comfort of Your Own Home
Providence Home Health Care would like to congratulate Health Care Hero Finalist Zhanna Khalafayan for her outstanding work as a Home Health Care Registered Nurse.
Job Well Done! Proud recipient of the Home Health Care Elite Award of Excellence
440-442-1115 | www.providencehhc.com
LOUIS STOKES CLEVELAND VA MEDICAL CENTER Dr. Chester H. Ho, chief, spinal cord injury FROM THE NOMINATION:
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he Louis Stokes Cleveland VA Medical Center serves veterans in Northeast Ohio at its two medical centers and community-based outpatient clinics. Its services and specialHo ties include mental health, pharmacy, primary care, research, social work, specialty care and spinal cord injury. The Spinal Cord Injury Center at Louis Stokes Cleveland VA Medical Center serves veterans with spinal cord injuries or disabilities in Ohio, western Pennsylvania, West Virginia, southern Michigan and western New York. Dr. Chester H. Ho is chief of spinal cord injury at the Louis Stokes Cleveland VA Medical Center. According to the nomination, Dr.
The treatment (of pressure ulcers) has become a standard of care in the spinal cord injury unit. Ho was awarded a Research Career Development Award by the VA Rehabilitation Research and Development Service, developing a research interest in pressure ulcers. The research built the foundation for subsequent endeavors, including being funded a merit review award by the VA Rehabilitation Research and Development Service to study the use of pulsatile lavage in the treatment of pressure ulcers. As a result of the study, the treatment has become a standard of care for pressure ulcers in the spinal cord injury unit. The VA Rehabilitation Research and Development Service also provided support for the funding of multiple research grants to examine the use of electrical stimulation in the management of pressure ulcers. Dr. Ho is an investigator at the Cleveland Functional Electrical Stimulation Center, a partnership of the Cleveland VA Medical Center, Case Western Reserve University and MetroHealth Medical Center.
SISTERS OF CHARITY HEALTH SYSTEM FROM THE NOMINATION:
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s a faith-based organization, the Sisters of Charity Health System promises to provide health care to all
DYNAMIC. Reminger would like to congratulate those individuals selected as “2010 Health Care Heroes Finalists”, a dynamic group of individuals who have touched the lives of those they serve. The Reminger Health Care Practice Group is also comprised of a dynamic team of experienced lawyers who provide effective counsel for health care professionals relative to all areas of individual and corporate business matters. Our practice group has extensive experience in the health care arena, focusing on regulatory matters, business transactions and litigation affecting health care providers. We also offer guidance pertaining to estate planning, asset protection and more. Reminger: Caring for you while you care for others. Contact Marilena DiSilvio for more information.
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ADVOCATE — ORGANIZATION regardless of their ability to pay — but it doesn’t stop there. Sisters of Charity oversees more than 20 ministries dedicated to health and human services in Cleveland, Canton and Columbia, S.C., where its hospitals are located. The ministries address critical issues such as health disparities, homelessness, early child“SCHS hood developdemonstrates ment and health literacy. a true Headquardevotion to tered in Clevehealing land, the health through each system also oversees two ministry.” foundations with assets totaling nearly $150 million to address the causes of poverty and to encourage the growth of healthy communities, while also measuring the effectiveness of these efforts. “SCHS demonstrates a true devotion to healing through each ministry,” said the nomination from William Joseph, an attorney at Cleveland law firm Weston Hurd LLP. “Thousands of employees are inspired and empowered to take action in developing and delivering faith-based health and human services,” the nomination said. “By doing so, SCHS and its employees advance an enduring legacy of responsive ministry, creative stewardship and an ongoing quest for social justice.”
VOICES FOR OHIO’S CHILDREN FROM THE NOMINATION:
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edical innovation is one thing, but as this year’s federal health care debate shows, it counts for less if costs put care out of reach. That is where Voices for Ohio’s Children comes in. The nonpartisan collaborative of public, private and nonprofit organizations lobbies for more health coverage for children. In 2008, the group pushed at the state level for expanding coverage under the federal Medicaid program for children in families with incomes at 300% of the federal
JULIE BURNETT Social worker In-House Hospice FROM THE NOMINATION:
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ulie Burnett’s peers at In-House Hospice call her a consummate team player but she deserves individual recognition because her contributions outweigh her humility. They see her as a model social worker in end-ofcare. They call ALLIED HEALTH life her the “go-to resource” for social work issues regardless of which health care specialty is doing the calling. They term her “preceptor” for her role as a Burnett mentor to new social workers. Aside from bringing together with passion various resources to improve conditions for patients receiving hospice care, Ms. Burnett clearly is a talented communicator. Her speaking skills established for her a role in the organization as a
DR. HEATHER GORNIK Staff physician in cardiovascular medicine/ medical director of the noninvasive vascular lab Cleveland Clinic FROM THE NOMINATION:
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r. Heather Gornik has been described as a “present-day Wonder Woman.” Since joining the medical advisory board of the Fibromuscular Dysplasia Society of America, she has championed research and treatment for a little-known disease called fibromuscular dysplasia, which causes abnormal cell growth in the body’s arteries that can lead to narrowing and decreasing blood flow. Last year, Dr. Gornik established
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ADVOCATE â&#x20AC;&#x201D; ORGANIZATION poverty level from 200%. When Gov. Ted Strickland put the change into law, it gave coverage to another 21,000 Ohio children. Other efforts widened coverage to children in foster care to 21 from 18 and increased coverage of pregnant women to 200% of the federal poverty level from 150%. Formed in 2004, Voices for Ohioâ&#x20AC;&#x2122;s Children plays a key role in such efforts due to its staff. Observers see Amy Swanson, executive director, as a talented motivator and leader. Mary Wachtel, director of health policy, has the skill to bring research to life in a way that shows lawmakers the impact of their decisions. Moreover, Gayle Channing Tenen-
ALLIED HEALTH
BETH SHAPIRO baum, senior public policy adviser, has relationships with lawmakers of both parties and government leaders of many ranks, including a reputation as an adviser to Gov. Strickland. Collins â&#x20AC;&#x153;Colâ&#x20AC;? Owens, co-chair of the Ohio Consumers for Health Care Coverage coalition, describes Voices as a sophisticated advocate that knows nuances of policy and the legislative process. â&#x20AC;&#x153;As it affects children in the health care arena, they are without peer,â&#x20AC;? Mr. Owens said.
Social worker Hospice of the Western Reserve FROM THE NOMINATION:
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eth Shapiroâ&#x20AC;&#x2122;s students and colleagues admire her teachings on social work, cultural diversity and family dynamics within the social sciences field. Shapiro But itâ&#x20AC;&#x2122;s her ability to champion compassionately for
â&#x20AC;&#x153;(Ms. Shapiro) looks for ways to make each person feel valued and helps them to sort through the difficult days they face.â&#x20AC;? Hospice patients that has distinguished the social worker from her counterparts. In fact, Ms. Shapiroâ&#x20AC;&#x2122;s office at the Hospice House, a 42-bed inpatient facility of the Hospice of the Western Reserve, is considered a safe haven for patients and family or staff members who come to her to share their thoughts and frustrations. Providing individual attention is one way Ms. Shapiro helps to maintain quality of life for each patient at the facility, where she also teaches volunteer
classes and mentors social work interns, as well as serving on the leadership committee for the Hospice of Western Reserve. Ms. Shapiro also teaches at the Mandel School of Applied Social Sciences at Case Western Reserve University. â&#x20AC;&#x153;Bethâ&#x20AC;&#x2122;s compassion and ability to connect with diverse people and situations is remarkable and always inspires those around her to go above and beyond and follow her example,â&#x20AC;? the nomination said. â&#x20AC;&#x153;She looks for ways to make each person feel valued and helps them to sort through the difficult days they face.â&#x20AC;?
They call her the go-to resource for social work. person who â&#x20AC;&#x153;trains the trainer,â&#x20AC;? as a colleague says. Moreover, she uses that skill broadly. She runs community workshops on topics ranging from crisis management to domestic violence. She even takes time to speak to people arrested for prostitution to alert them to dangers they face and the importance of their own self-esteem. She is penning her third book after publishing â&#x20AC;&#x153;Regaining Her Voiceâ&#x20AC;? and â&#x20AC;&#x153;Regaining His Victory,â&#x20AC;? which are intended to help women or men, respectively, recover from the wounds of sexual abuse. Although busy, she attunes herself to client needs. One example: A dying 93-year-old regretted not receiving her high school diploma. Ms. Burnett found that the woman met graduation requirements â&#x20AC;&#x201D; she just had not gotten her diploma. In short order, the client received her diploma and graduation cap from the superintendent of her high school district at her own graduation ceremony. â&#x20AC;&#x153;Mother was still talking about it up until the end,â&#x20AC;? the patientâ&#x20AC;&#x2122;s daughter said.
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the countryâ&#x20AC;&#x2122;s first clinic for fibromuscular dysplasia at the Cleveland Clinic and helped the University of California, Davis establish a similar clinic on the West Coast. She also collaborated with the University of Michigan to a ALLIED HEALTH establish patient registry for the disease. Her work has inspired patients to travel from all over the world to the Cleveland Clinic to seek treatment for fibromuscular Gornik dysplasia. â&#x20AC;&#x153;In the near future, I do believe all physicians will be aware of this disease and be able to screen appropriately because she cared to help us,â&#x20AC;? said the nomination from Maureen Womack, a registered nurse from Rocky River who was diagnosed in 2002 with the disease. â&#x20AC;&#x153;Dr. Heather Gornik is my hero.â&#x20AC;?
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Alder employees participated in the company’s initial health screenings, while 76% last year took part in Shape up the Nation, a socialnetworking initiative aimed at uniting people seeking healthier lifestyles. Through that program, the employees lost a combined 137 pounds, exercised for 1,410 hours and walked 18.9 million steps. This year, the company will add monetary subsidies, including discounts at fitness clubs and nutritional dietary aids. Additionally, the company produces and distributes to several thousand individuals a monthly newsletter, Healthclips, which identifies trends in wellness, healthy recipes and health and wellness events taking place in Greater Cleveland.
EMPLOYER ACHIEVEMENT IN WELLNESS
HERBRUCK ALDER FROM THE NOMINATION:
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leveland benefits brokerage and consulting firm Herbruck Alder has stressed to its 700 clients and their 40,000-plus employees that its wellness program, Herbruck Alder Health Advocates, helps lower health care costs and allows for healthier lifestyles. For proof, it points to its own employees, who have hit the ground running with the various elements of the 2-year-old program. Eighty-seven percent of Herbruck
EMPLOYER ACHIEVEMENT IN WELLNESS
RECOVERY RESOURCES FROM THE NOMINATION:
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ecovery Resources’ employees have become more in tune with health and nutrition, thanks to its “Fit as a Fiddle” wellness initiative. The 10-week program runs quarterly and has boosted employee productivity and energy. The initiative has impacted about 45% of staff members’ lives. Among the successes, employees reported lower body mass indices and are making healthier eating choices, drinking more water, exercising and getting more sleep. The program also has fostered healthy competition among staff members. “Fit as a Fiddle” was initiated by Assist Now, Recovery Resources’ employee assistance program, and it is serving as a model to other companies that contract with Assist Now. “As all companies face increases in health care costs, the help we can provide other companies in caring for their employees by implementing their own initiatives will help keep health care costs lower, and allow employees to be healthier, more productive and happier in the workplace,” the nomination said.
EMPLOYER ACHIEVEMENT IN WELLNESS
INFOCISION MANAGEMENT CORP. FROM THE NOMINATION:
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he Akron call-center operator and marketing company operates a distinguished, progressive, aggressive set of programs focusing on caring for employees and their welfare. As a self-insured company, InfoCision plowed more than $1 million over the last five years into initiatives designed to reduce increases in its health care premiums. The programs allow InfoCision to slow increases in health care premiums to single digits — an accomplishment
when double-digit hikes are common. The programs, inspired by CEO Carl Albright, even extend the company’s brand: InfoFitness is the name for on-site fitness centers that include a certified full-time trainer and companywide weight-loss program; and InfoWellness is the name for its on-site clinic and physician. InfoCision also operates InfoKids, which includes subsidized child care services, an on-site early learning center and dependent day care savings plans. The company provides low-cost flu shots on-site, along with health fairs for all 15 of its locations, which include blood pressure, cholesterol and body fat screenings.
Cleveland Cavaliers enter the NBA Astronauts walk on the moon Mack Swigert authors Taft-Hartley Labor Act
Firm is founded
Senior vice president and chief nursing officer Akron General Health System
my 30 years of service in the health care arena. Her enthusiasm for the work she performs ignites a passion for nursing excellence in others.” “Bev is a dynamic ‘hands-on’ FROM THE NOMINATION: leader. She believes in her staff and has created a positive everly Bokovitz is work environment. … She so popular at listens to what her Akron General employees have to say.” Health System that Ms. Bokovitz also a slew of her colleagues “continually inspires her contributed their own management team” and thoughts to her nominahas helped improve lives in tion form. Among them: and around Akron while Bokovitz “Beverly Bokovitz is demonstrating “transabsolutely the most excepparency, flexibility and the tional nursing leader whom I have mindset that leadership is a journey.” had the pleasure of working with in Ms. Bokovitz was the driving
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NURSE — HOSPITAL SETTING As coordinator of the SeniorCare Assessment Center at Lakewood Hospital, Ms. Nelson, a geriatric clinical nurse specialist, has helped the Nelson center grow from seeing 70 patients when she took on the job in 1991 to serving more than 1,000 seniors in 2009. The assessment center team includes psychiatrists, including a geriatric psychiatrist; nurses, including
CHRISTINE F. NELSON Coordinator, SeniorCare Assessment Center Lakewood Hospital FROM THE NOMINATION:
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ealth care for the elderly is a growth field, and Christine Nelson is one of Northeast Ohio’s leading practitioners.
Four years ago, Ms. Reali-Sorrell decided she’d seen too many young trauma victims come to the hospital as a result of violent crimes. Assistant nurse manager, By reaching out and working with the East Cleveland Neighborhood nurse educator Center and the juvenile court system, Huron Hospital she created the Huron Juvenile Diversion Program. FROM THE NOMINATION: The program serves first-time offenders between the ages of 10 and 17 and mentors them to choose hen Michele Realibetter lifestyles and futures for themSorrell joined the emerselves. A team of social gency departworkers, police officers, ment staff at teachers, trauma surgeons Huron Hospital in 1996, she and others was put together immediately established by Ms. Reali-Sorrell. herself as a great nurse. To date, more than 200 Since then, though, she’s youths have participated in proven she’s also a leader in the program. Of the 82 stuthe health care field — able dents who went through to bring together local Reali-Sorrell the program in 2008, 68% governments, community stayed out of trouble for a agencies and health care full year. professionals to tackle tough issues.
MICHELE REALISORRELL
Advent of personal computing
Elliott Ness becomes Safety Director of Cleveland
NURSE — HOSPITAL SETTING
NURSE — HOSPITAL SETTING
Taft celebrates its 125th
Robert A. Taft elected to U.S. Senate
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Congratuations to Celebrating 125 Years of Innovation and Leadership. Grounded in experience while focused on the future, Taft is proud to have served our clients and the communities where we live and work through the many milestones that have shaped us all over the years. Find out how our unique perspective, Celebrating collaborative style and 125 years of serving leading 125 Year s companies in all areas of business has given us something to celebrate. Taft Stettinius & Hollister LLP www.taftlaw.com
A Health Care Hero, to Our Nation’s Heroes! From:
The Louis Stokes Cleveland Department of Veterans Affairs Medical Center and
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force behind a movement to focus on establishing relationships with patients while she also increased certifications among registered nurses and created a serenity room for nurses. “She has the ability to create a compelling vision for all who work for her and for motivating people to reach higher goals,” the nomination said. Ms. Bokovitz also has worked to identify areas needing improvement. An example of this is when Ms. Bokovitz recognized that Edwin Shaw Hospital, a division of Akron General, would benefit from moving. Ms. Bokovitz engineered the relocation, and in December 2009 patients and services were moved to a new home in Cuyahoga Falls.
a geriatric nurse specialist; and social workers. It works with a patient’s primary care physician and the patient’s family to develop a plan to manage a senior’s care that includes everything from driving safety to issues of memory loss to geriatric psychiatry services for patients experiencing behavioral changes. In addition to her work at the center, Ms. Nelson has done extensive outreach in the community. During 2009 she gave caregiver seminars to more than 250 people and made 10 public presentations on topics ranging from dementia and memory impairment to caregiver stress.
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NURSE — NONHOSPITAL SETTING
MARJORIE CORNELL Case manager Eliza Jennings at Home Clinic, Westerly Apartments FROM THE NOMINATION:
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o say Marjorie Cornell is a nurse at the Westerly Apartments in Lakewood says little about all she does for the elderly and her community. As case manager of the apartment complex’s Eliza Jennings at Home Clinic, Ms. Cornell provides health advice and medical assistance to 500 lowincome senior citizens, but she also is a source of reassurance, support and friendship. Her duties Cornell involve seeing walk-in patients, helping residents manage medications and visiting their apartments. Ms. Cornell also has created programs to teach residents about health issues, and she also helps set up movie nights, spaghetti dinners and clam bakes. She has volunteered with Lakewood United Methodist Church and the Susan G. Komen 3-Day for the Cure breast cancer walk.
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ZHANNA KHALAFYAN Registered nurse Providence Home Health Care FROM THE NOMINATION:
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ven when she isn’t on call, Zhanna Khalafyan makes it clear to her patients that they still can reach her. She embodies the ideal of the home health care nurse by happily volun-
MAY 3-9, 2010
teering to take the most complex tracked down a Russian-language cases and working as an official talking pill box after learning that a nurse mentor for new nurses. Russian-speaking patient had diffi“Zhanna has such a good reputaculty remembering to take pills that tion in the community that would keep him out of the she is requested by name — hospital. She also got his there is no better compliinsurance company to pay ment than getting referrals for it. from past patients,” the In another instance, nomination said. Ms. Khalafyan bathed and Ms. Khalafyan “is a changed the clothes of a positive influence and patient who paramedics never compromises personal would not transport to the Khalafyan integrity or her patients’ hospital because he had safety”; she “sets high stansoiled himself. After the dards in patient care by leading by patient arrived at the hospital, she example”; and she “is an excellent cleaned his apartment and stayed role model” who “goes the extra with his wife until the early hours of mile,” according to the nomination. the morning, when her family could In one instance, Ms. Khalafyan arrive from out of town.
ADRIANA T. WHELAN Nurse practitioner The Free Medical Clinic of Greater Cleveland FROM THE NOMINATION:
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driana Whelan sees her duty of improving lives and increasing health care access as more than a job.
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Often working 10 to 11 hours each day, she treats patients, mentors student practitioners and even serves as a social worker of sorts as she is challenged with educating and empowering patients to make responsible choices and take better control of their health care. “Her colleagues will attest that Adriana will willingly and capably handle any problem, of any magnitude, any time she is asked,” said
PHYSICIAN
DR. ROGER CHAFFEE M E N TA L H E A LT H S E RV I C E S
NURSE — NONHOSPITAL SETTING
Medical director Open M Free Health Clinic FROM THE NOMINATION:
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or a lot of people, serving as a full-time cardiologist at the Summa Health System would be enough to keep them not only busy, but satisfied that they were using their talents fully. Dr. Roger Chaffee is not like a lot of people. He’s found the need to have a whole other career on the side, providing health care to those who can’t afford it at Akron’s Open M Free Health Clinic. “Dr. Chaffee spends all of his spare time as medical director of
the free medical clinic and providing care to the uninsured patients of the greater Akron community,” his nomination states. “There has never been a task too large or small for Dr. Chaffee to handle, including spending extra nights seeing patients in the clinic, providing rides to several of his patients, giving out his Chaffee cell phone number to others and even peeling potatoes at Thanksgiving in the kitchen.” His work has served as a beacon to other health care providers, who have flocked to him to volunteer their own time and enable him to expand services at Open M. At the
PHYSICIAN
DR. CHESTER H. HO Chief, spinal cord injury Louis Stokes Cleveland VA Medical Center FROM THE NOMINATION:
Cedar Point is the perfect place for a company outing! It’s affordable, and easy to plan too. We do all the work for you. So your only job is to have fun! No matter how big your group is, we can plan a fun-filled day for everyone. Plus, for Group Events we offer a wide variety of tasty meal options. And at Cedar Point, you only pay for members of your group that show up! There’s also the Good Any Day Program where employees can purchase a discounted park ticket to use any day all season long. You can even set this up online for free, and make things even easier. So pick something everyone will love and come to Cedar Point. Sandusky, OH Go to cedarpoint.com/groups for details and pricing info. Or call 1-800-448-2428.
D
r. Chester Ho is out to change the way that pressure ulcers, commonly known as bedsores, are treated. Dr. Ho, chief of spinal cord injury at the Louis Ho Stokes Cleveland VA Medical Center, has spent much of his professional life studying
various ways to treat pressure ulcers, which often occur in people with spinal cord injuries. He has received multiple awards from the VA Rehabilitation Research & Development service to study pressure ulcers, one of which involved conducting the first randomized, controlled trial studying a way to treat the condition with pulsatile lavage, a procedure used to clean wounds. He also is a principal investigator with the Cleveland Functional Electrical Stimulation Center, through which he has studied the use of electrical stimulation to treat pressure ulcers. Through the studies, he is
PHYSICIAN
DR. ELLEN ROME Head of the section of adolescent medicine; associate chief of staff Cleveland Clinic FROM THE NOMINATION:
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r. Ellen Rome, one of the first physicians in the United States to be board certified in adolescent medicine, has “touched and impacted the lives of thousands of patients and their families,” particu-
larly through her expertise regarding eating disorders and obesity, according to the nomination. She works to decrease instances of childhood obesity and her work has drawn national attention, making her an in-demand speaker and earning her a slew of awards, including recognition in various “Who’s Who” listings and bestdoctor rankings. But Dr. Rome also is comfortable with her patients, who describe her as “that rare combination of the best practices of modern medicine coupled with an attention to detail and care,” according to the nomination.
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the nomination from Danny Williams, executive director of The Free Clinic. “She excels wearing whatever hat fits each day.” Ms. Whelan — who spent close to a year as the clinic’s only full-time medical practitioner — is a tireless advocate and Whelan ambassador of The Free Clinic, where she has worked for more than a decade. She has provided clinical lectures to students, professionals and
community members on topics such as HIV, homelessness and the sociology of medicine. She also has conducted medical research, authored several clinical publications and mentored and trained volunteers. One colleague describes Ms. Williams as a “triplethreat” because she epitomizes the rare practitioner who excels in clinical medicine, research and education, the nomination said.
When he did take a vacation recently, Dr. Chaffee took the opportunity to visit another free clinic — just to compare processes.
DR. MICHAEL DEVEREAUX
same time, he also has worked with foreign medical students looking to practice in the United States. And while many might seek to emulate Dr. Chaffee by also working to serve those without insurance, it seems unlikely anyone will equal his work ethic. When he did take a vacation recently, Dr. Chaffee took the opportunity to visit another free clinic — just to compare processes and procedures and to see if there was anything he could take home to further improve his own clinic.
The use of pulsatile lavage to treat pressure ulcers has become a standard practice at the Cleveland VA. achieving his ultimate goal of translating research into treatments that are used to help patients: For instance, the use of pulsatile lavage to treat pressure ulcers has become standard practice at the Cleveland VA’s spinal cord injury unit. His work has been recognized nationally and internationally, and he frequently speaks on the topic of pressure ulcer management. He also passes his knowledge along by teaching and mentoring medical students at Case Western Reserve University.
Department of Neurology, professor University Hospitals Case Medical Center Case Western Reserve University FROM THE NOMINATION:
D
r. Michael Devereaux puts his 30 years of experience as a practicing neurologist to good use as president of the board of the Epilepsy Association in Cleveland. Epilepsy is a neurological disorder that results in seizures, or brief surges of unconVOLUNTEER trolled electrical activity, in the brain. The association says it affects 1% to 2% of the population, most commonly among children and the elderly. In 70% of cases Devereaux there is no known cause of epilepsy. A professional lifetime in neurology has given Dr. Devereaux technical expertise that benefits the association as he speaks with agency staff and patient groups, the nomination states. He has worked hard to support the association’s efforts “to increase the access to care the patients need for epilepsy medications,” according to the nomination, and he “has earned great respect among his peers for his political acumen with regard to institutional politics and involvement in advocating for epilepsy patients.”
VOLUNTEER
JOANNE DEHAMEL President, Family Advisory Council University Hospitals Rainbow Babies & Children’s Hospital FROM THE NOMINATION:
F
or joAnne deHamel, creating a bridge of understanding between families and hospital staff is a top priority.
The president of the Family Advisory Council at University Hospitals Rainbow Babies & Children’s Hospital, Ms. deHamel advises staff members on their treatment of patients’ families and how to handle difficult situations arising from children being hospitalized. Ms. deHamel — whose daughter was born with special needs — draws in part from her own experiences, and in her five-year deHamel tenure, the past two of which she’s served as president, she has assisted in the revision of UH’s patient satisfaction class and the
development of advisory councils in the surgery department and the Ireland Cancer Center. She also is a member of the hospital system’s service excellence steering committee, which focuses on patient service through elements such as telephone courtesy and way-finding. Debbie Monahan, a member of Rainbow’s Family Advisory Council, is quoted as saying that Ms. deHamel inspired her to join the council. “I have never met someone more committed to patient care,” she said.
work as a volunteer also is making an impact. Dr. Marko, who has been selected as chief resident for the 2010-2011 school year, has volunteered five to six hours a week at the Langston Hughes Community Health and Wellness Marko Center, providing free general medical care to the underserved and uninsured of the Fairfax and surrounding communities. “Dr. Marko does this volunteer ser-
vice, not out of desire to pad his résumé — his neurosurgery department is only minimally aware of the hours that he has devoted,” the nomination said. Dr. Marko helps to identify conditions such as hypertension, diabetes and sexually transmitted diseases that often go undiagnosed. Once medically stable, Dr. Marko then refers the patients for ongoing primary care.
VOLUNTEER
DR. NICHOLAS MARKO Neurosurgery resident Cleveland Clinic FROM THE NOMINATION:
D
r. Nicholas Marko’s research may have earned him multiple awards and grant funding, but his
CONGRATULATIONS To Our Health Care Heroes
Laura Matthews
Christine Zirafi, MD, FACC
Finalist, Health Care Advocate
Finalist, Advancement in Health Care
MANAGER
MEDICAL DIRECTOR
Adult Day Services
Cardiac Catheterization Services
In the Parma Hospital community, we witness the heroic efforts of our Crain’s Health Care Heroes finalists every day. “Once under Dr. Ellen’s wing, patients receive the best possible medical attention delivered with an unmatched passion, love and devotion,” parents Brad and Rosetta Gorman were quoted as saying in the nomination. “Simply put, we cannot imagine raising our child … without her sage and caring advice and counsel.” Dr. Rome’s leadership led to the Cleveland Clinic Rome implementing comprehensive nutrition and obesity prevention programs for children and adolescents. She mentors pediatric
residents to go into adolescent medicine and helps teach the core course in that health track — the only in the country, which she helped start — at Case Western Reserve University’s School of Public Health. “She gives tirelessly to patients while role modeling for students and residents clear communication, accessibility, compassion and caring,” the nomination said. “A thoughtful question here, words of encouragement there, and an enthusiastic response are Dr. Rome’s daily fare.”
H-9
Their exemplary leadership and commitment raises the standard in their respective fields, and provides excellent, personalized care for the patients and families they serve.
Because we care
440-743-3000 | parmahospital.org
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
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MAY 3-9, 2010
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Bioplastics: Products become more valuable as oil costs rise continued from PAGE 3
used to make them are too weak for durable goods. PolyOne is one of several plastics companies looking to change that situation. The company has developed a line of bioplastics created by mixing polymers such as polylactic acid, or PLA, with traditional polymers. The result is that the products are stronger and more heat resistant than plastics made from biopolymers alone, said Steve Schlegel, industry marketing manager for PolyOneâ&#x20AC;&#x2122;s engineered materials group. They also can be processed in machines that make parts from regular plastics, he said. Several customers across various industries are running test trials on the â&#x20AC;&#x153;reSoundâ&#x20AC;? line of products to ensure they meet their specifications. So far they seem excited about using the products, Mr. Schlegel said. He declined to identify customers. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got people ready to buy,â&#x20AC;? he said. The products will cost more than petroleum-based plastics, but Mr. Schlegel noted that they will become more competitive as the price of oil increases. Common bioplastics can sell for 85 cents to $2.75 per pound,
whereas most oil-based plastics sell for less than $1 per pound. PolyOne expects consumers to be willing to pay a premium for reSound products, which typically consist of 30% to 50% biopolymers. The idea for the reSound line drew positive attention when PolyOne first presented it at the International Plastics Showcase in Chicago last June, said Marcel DartĂŠe, global marketing director for biomaterials at PolyOne. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a bit of a breakaway,â&#x20AC;? Mr. DartĂŠe said. Itâ&#x20AC;&#x2122;s also getting attention at PolyOne, where CEO Stephen Newlin has touted the importance of bioplastics to the future of the company. â&#x20AC;&#x153;I think weâ&#x20AC;&#x2122;re on the cusp of a new era for plastics,â&#x20AC;? Mr. Newlin said in a June 2009 story in Plastics News, a sister publication of Crainâ&#x20AC;&#x2122;s Cleveland Business.
Rising rate of interest PolyOne seems to be marketing its reSound products more aggressively than other plastics compounders, such as RTP Co. of Winona, Minn., that have started blending traditional plastics with bioplastics to create
PHOTO PROVIDED
This is an example of a consumer electronics device that could be designed using PolyOneâ&#x20AC;&#x2122;s reSound product line to improve the deviceâ&#x20AC;&#x2122;s carbon footprint. stronger final products, said Jim Lunt, who runs a plastics-focused consulting firm in Wayzata, Minn. In a few years, plastics companies might be able to make pure biopolymers stronger and more heat resistant, which would lessen the need for compounders such as PolyOne to create hybrids such as the reSound line, Dr. Lunt said. For now, though, demand for biopolymers is growing. Dr. Lunt cited a report by The Freedonia Group of Mayfield Village that said demand for bioplastics will climb to 900,000 metric tons per year
by 2013, up from 200,000 metric tons in 2008, driven largely by durable products. Plus, the federal government soon will begin favoring bioplastics over their oil-based counterparts when purchasing goods, Dr. Lunt said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s where the industry is going,â&#x20AC;? he said. A. Schulman Inc. is working with bioplastics, too. The Akron-based supplier of plastic resins for the past two years has been selling other companiesâ&#x20AC;&#x2122; bioplastics in Europe, and like PolyOne it already includes them in some of its additives, said Dennis Smith, director of new business applications. A. Schulman also is considering creating its own hybrid bioplastic products. Mr. Smith agreed that demand for bioplastics, while still small, is growing. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s more interest today than there was last year,â&#x20AC;? he said.
Give it time Cell-O-Core Co. of Sharon Center two years ago started making a line of drinking straws from PLA. Sales have shown slow, steady growth in the northeastern and
northwestern portions of the United States, but they have lagged elsewhere, said executive vice president Thomas Allen. He said thatâ&#x20AC;&#x2122;s because few companies that buy his straws are willing to pay a premium for such products. However, Mr. Allen noticed that bioplastics are appearing in an increasing number of products. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve seen that jump probably twofold over the last two years,â&#x20AC;? he said. Packaging maker Aabaco Plastics of Garfield Heights has noticed an increase in the number of companies trying to sell them bioplastics, but vice president Jonathan Lee said the company isnâ&#x20AC;&#x2122;t ready to adopt them. Aabaco Plastics would need new machinery to make packages from the biopolymers with which he is familiar. They also are too weak for his purposes and are not well-suited to producing clear bags. Even so, Mr. Lee said he expects the popularity of bioplastics to grow as technology improves, especially now that retail giant Walmart is giving preference to environmentally friendly suppliers. â&#x20AC;&#x153;Everyoneâ&#x20AC;&#x2122;s trying to go green wherever they can,â&#x20AC;? Mr. Lee said. â&#x2013;
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School: Higher ed students face financial challenges continued from PAGE 3
Business Administration and the master of science in nursing program are especially popular, he said. Though the strength of the economy — or lack thereof — plays a role in the decision to obtain a master’s degree, going beyond the bachelor’s degree is becoming a more popular choice, Ursuline’s Ms. Rizzo said. “The master’s degree is really becoming essential,” she said. “A lot of people are coming back to enhance their skills in their current career.”
Interest from abroad George Richard, assistant vice president and director of college
relations at Baldwin-Wallace College, said the MBA also hasn’t lost its luster. Inquiries about the college’s MBA program have jumped 54% over this time last year, Mr. Richard said. Applications tend to be submitted over the summer for acceptance in the fall semester, he said. Though the business school at Cleveland State University is doing particularly well in applications this year, spokesman Rob Spademan said overall admissions for graduate programs were up 19% as of April 19 compared with the like period last year. He said the university also is seeing more applications from foreign students, specifically from
China and India. “Those countries are booming, and they just don’t have the academic structure to handle it,” he said. And once students apply and are accepted to a graduate school, they tend to enroll. “There’s so much research that goes into a graduate application that, once they apply, they’ve already decided they are going,” Ursuline’s Ms. Rizzo said.
Dollars and sense issues However, paying for grad school is still an issue, especially because the financial aid available for graduate students is slim. Private grants are hard to come by unless a
student is considered low income or wants to enter certain fields, and federal grants for needy students are reserved for undergraduate students, Ms. Rizzo said. Louise Ditchey, director of master’s programs at Kent State University’s Graduate School of Management, said some graduate students still have corporate support for tuition, but others are on their own. “There are probably more people dipping into their savings accounts and looking for loans,” she said. The University of Akron asks every applicant why they applied or chose to enroll in its law school. For the last three years, one of the main reasons
Team: Bad economy presents new opportunities for brokers continued from PAGE 3
than eight people, Mr. Burnside said, though it’s unlikely to expand to more than six this year. “We all wear a lot of different hats here,” Mr. Burnside said. “Their primary role is to go out as rainmakers to get new business here and to bring in Ohio companies as corporate services clients with needs in other places.” He said they also serve as relationship managers for Mohr clients from other locations with requirements in Ohio and adjoining states. Mr. Redmond said Mohr offered freedom and he likes its focus on tenant representation. That means Mohr exclusively serves clients on the buy side of deals, eschewing assignments for owners to lease or sell their properties. “The last few years I have focused on tenant representation and my toughest competition was around the block or down the hall,” Mr. Redmond said, referring to CB’s offices in the Hanna Building and at 200 Public Square. “It’s a new beginning with new opportunities to use all my business relationships.” Mr. Fleming said he left Grubb & Ellis five years ago because he wanted to move from all the “phone answering” of a typical brokerage and handle a few urban deals as a way of trying to help resurrect Cleveland’s ailing inner city. Mohr, Mr. Fleming said, has good corporate information systems and processes. He said it also offers a chance to “make money and have
It’s All About the Drive.
fun at what I view as an early stage Staubach Co.” Staubach was a much-touted tenant representation firm from Dallas that Jones Lang LaSalle Inc. of Chicago acquired in 2008.
Time for a change Brokers more often shift houses in lean times or break free to start their own shops. In part, that’s because there are fewer fights over commissions and assignments after leaving one house for another. They also move in hopes of enriching their earnings with a different commission structure or platform. Tenant representation is a real estate practice area that exploits a key business conflict under state realty laws created by who actually pays the agent’s fee. In Ohio, an agent may represent a company leasing or buying a space, but the agent owes a fiduciary duty to the owner who pays his or her commission. Tenant reps, or buyer’s reps in residential brokerage, sign agreements with tenants or buyers pledging their first duty is to them. Cleveland recently lost one of its tenant rep offices as the two co-managers of Chicago-based UGL Equis Associates Corp.’s office moved to Jones Lang’s office here. Brian Conroy and Scott Pick became senior vice presidents at Jones Lang to bolster its local tenant rep practice, said Robert Roe, managing director of Jones Lang’s Cleveland office. ■
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was cost of attendance, said Lauri Thorpe, assistant dean of admission, financial aid and student services at Akron’s law school. Regardless of the reasons students are attending grad school, the bottom line is that fewer people are stopping at the undergraduate level, and the increase is likely to continue, said Denise Douglas, senior association dean of the School of Graduate Studies at Case Western Reserve University. With an increased number of people with master’s degrees, others might enroll in graduate school to stay competitive, she said. As John Carroll’s Dr. Storz noted: “Today’s master’s degree is yesterday’s bachelor’s degree.” ■
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The format is a 2-person best ball with 2 teams representing each company (one foursome). The low net 2-person team of the Tournament will advance to the Mercedes-Benz Western Sectional at The Bacara Resort & Spa in Santa Barbara, California November 10 -14, 2010. A total of three teams from this Sectional will advance to the National Final at Augusta Country Club, Tuesday, April 5, 2011. As an added bonus, by sending us your best foursome you can also claim The Ohio Corporate Cup Waterford Crystal Trophy for your boardroom, presently residing with the defending champion, Preformed Line Products. The Ohio Corporate Cup Trophy will be presented by Honorary Tournament Chair Michael J. Farrell, President, UH Rainbow Babies & Children’s Hospital. The tournament field is limited to 120 participants. For official entry forms and more information, contact USA Expositions at 440.348.0960. Or email broggenburk@usa-expo.com. Tournament proceeds benefiting Rainbow Babies & Children’s Hospital...one of the nation’s top ten children’s hospitals.
Sponsored by:
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Golf: Courses boosting their online presences “Golf courses are attempting to make it easier for people to find them and do business with them. What’s easier than online tee times and a gift card for rounds?”
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variety of rounds packages, which include pick-a-day, value time rates and a Mondaythrough-Thursday package that provides 24 rounds for the price of 16. That package runs $600, a nearly 50% discount off regular rates. In addition, Bunker Hill is pushing membership in the course’s e-club, which now includes 20,000 golfers broken down into the avid and casual, the former group receiving correspondence more frequently. New e-club members also received a free round in April. “This has been our best April,” Ms. Cole said. “People are making their golf decisions very last-minute right now, so this is a way to communicate better. Baseball practice got canceled tonight? This is what we have available.” The discounted packages are gaining steam across the area, from Briardale Greens Golf Course in Euclid to the now-public Hawthorne Valley Country Club in Solon and Granite Golf Properties’ two public courses, Shale Creek Golf Club in Medina and The Quarry in East Canton. Briardale Greens, now managed by 110course company Billy Casper Golf, also has options from which to choose. They include unlimited ($999) and weekday ($699) season passes, plus two advantage cards, which for $59 and $169, respectively, offer players $8- and $12-per-round discounts all season long. Hawthorne Valley, in its first year as a public course, is offering 25- and 50-round packages that include benefits formerly reserved for members: driving range access, showers, a locker and other amenities. The
Contact: Phone: Fax: E-mail:
– Dick Eide, principal, Golf Club Consulting Inc. 50-round package costs about $3,000, said owner Fred Rzepka, compared with the $5,500 annual membership fees previously charged. The packages have been received well early on both by new customers and former members, Mr. Rzepka said. “Golf is tough all over the city,” said Mr. Rzepka, who noted, simply, that he took the course public because he continued to lose money. “We’re promoting this because it’s a good deal for someone who wants to play golf for three, four or five months.”
Easy does it Like Briardale Greens, Granite Golf has a reward card of sorts, offering $15 off any round Monday through Thursday and Saturday through Sunday after noon; the card costs $49 for seniors and $79 for others. “You have rewards cards for places like Dick’s and other places; this is our way to reward a loyal customer,” said Brad Cavey, director of marketing at Granite Golf. “How can I take a quality facility like I feel we have and get it a little more affordable for customers to justify spending the money?” Meanwhile, Granite Golf has waived the $4,000 initiation fee at Medina Country Club
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in order to drive membership. “We lost numerous members from last season; the happy feelings the club provides didn’t put food on the plate,” Mr. Cavey said. “People are coming back; something is turning. That $4,000 is huge for potential members.” And just as Ms. Cole’s course has pushed its e-mail club, more courses are heading to the Internet and sites such as GolfNow.com, which allows players to book tee times online, often at discounts, and earn rewards for frequent bookings. For instance, 19 Cleveland-area clubs are listed on the site, and a search for Bunker Hill showed tee times available Saturday morning for $35, a discount over the course’s normal $45 rate for that time. Jimmy Hanlin, director of golf at Little Mountain Golf Club in Concord and StoneWater Golf Club in Highland Heights, said those clubs are up 35% in their round packages — which, like Hawthorne Valley, offer bar and range benefits, among other perks — over last year. Mr. Hanlin also said GolfNow.com has been a major emphasis at his two courses and at others across the area. “It’s a huge player now,” Mr. Hanlin said. “We’re driving people there; we’re trying to stay competitive on rates, and that’s one way to do it.” In a time of oversaturation in the industry, it comes down to courses being top of mind, said Dick Eide, principal at Golf Club Consulting Inc. of Glenwood, Colo. “Golf courses are attempting to make it easier for people to find them and do business with them,” Mr. Eide said. “What’s easier than online tee times and a gift card for rounds?” ■
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Key exec: Banks have learned from mistakes KeyCorp vice chair Beth Mooney said banks have learned their lesson about robust risk management, noting that while business cycles will continue, banks — in particular, Key — will take steps to ensure that they are not contributing to such downturns in the future. “We will not have a repeatable event in the future that’s somewhat preventable,” Ms. Mooney said last Thursday, April 29, in a speech to members of the CFA Society of Cleveland. “We need to step back and ensure that future cycles are less variable.” Ms. Mooney said the bank’s “job one” is to return itself to sustainable profitability. It has shrunk its loan-to-deposit ratio, she said, and is working to return to a moderate risk profile, growing high-quality, diverse revenue streams and taking other steps to improve profitability and cut costs. Ms. Mooney said she believes Key is positioned for growth and is continuing its strategy in the community bank — which Ms. Mooney runs — of being “the good ol’ fashioned Main Street bank.” Key has seen its loans decrease 11% year-over-year, Ms. Mooney said, primarily due to a lessened appetite for credit. She said the bank is investing in new and renovated branches and is looking at how else people can access the bank, including online and mobile banking. — Arielle Kass
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THEINSIDER
THEWEEK APRIL 26 - MAY 2 The big story: Invacare Corp. said A. Malachi Mixon III, its chairman and CEO, is taking a temporary medical leave after suffering what was described as “a mild stroke.” The provider of wheelchairs, portable oxygen and other home health equipment said Gerald B. Blouch, president and chief operating officer, will be interim CEO. James C. Boland, Invacare’s lead director, will be interim chairMixon man. In a statement from the company, Mr. Mixon said, “My condition is stable and my doctors have told me the prognosis for a full recovery is favorable.” Coming home: Steris Corp. plans to move 240 positions to its Mentor headquarters from its offices in Erie, Pa., as part of an expansion of its headquarters. The move is part of an effort by the maker of sterilization products to increase efficiencies across its operations. Steris is offering jobs in Mentor to most of the Erie employees, who worked in departments such as finance, customer service and product development. On the move:
National Interstate Corp. in Richfield is buying Vanliner Insurance for $125 million to $135 million in cash. Vanliner, based in Fenton, Mo., provides insurance for moving and storage companies. National Interstate is a property and casualty insurance holding company with a focus on the transportation industry. The purchase price may be adjusted after closing based on Vanliner’s closing-date balance sheet.
Clinical precision: Two top Cleveland Clinic executives were promoted as the health care system seeks to bolster integration of its hospitals. Dr. David Bronson was named president of Cleveland Clinic Regional Hospitals, and Fred DeGrandis was named chairman of the Cleveland Clinic Community Physician Partnership and Quality Alliance. Dr. Bronson will lead operations at the Clinic’s nine regional hospitals in Northeast Ohio, where he will work to standardize quality and safety. Mr. DeGrandis will focus on strengthening the Clinic’s relationships with community physicians and hospitals in Ohio and beyond.
Hot deals: GrafTech International Ltd., a maker of graphite electrodes and other carbon-based products, is buying the 81.1% stake it does not already own in Seadrift Coke L.P., a Texas-based producer of needle coke, and all the equity in C/G Electrodes LLC, a maker of graphite electrodes in St. Mary’s, Pa. Parma-based GrafTech will issue 24 million shares of its stock, $233 million in cash and $200 million in five-year notes. GrafTech did not break down how much will be received by each company, but did say it expects the acquisitions to be accretive to earnings in the first full year following their closings.
Winging it: Eliza Wing, the longtime head of Cleveland.com, is leaving the web site affiliated with The Plain Dealer for a new post at a Cleveland software company that hopes to exploit use of Apple’s new iPad. Ms. Wing was named president and chief operating officer of Sideways, founded by CEO Charles Stack, who started the first online bookstore, Books.com, which now is part of Barnes & Noble. Sideways said it’s working with publishers and authors to produce original books that leverage the functionality of Apple products and other mobile devices. Well-scrubbed: The Babcock & Wilcox Power Generation Group unit of McDermott International Inc. signed a contract valued at about $90 million to construct wet flue gas desulfurization systems, commonly called scrubbers, for two, 825-megawatt units at Detroit Edison Co.’s power plant in Monroe, Mich.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Columbus’ loss could be Sysco Cleveland’s gain ■ A plant closing in Columbus could end up bringing jobs to Cleveland. Food distributor Sysco Corp. of Houston said it will close its Columbus distribution center by the end of June to increase efficiency throughout the company, said Mark Palmer, a spokesman for Sysco. The work at the Columbus location will be divided among Sysco’s Cleveland, Cincinnati and Detroit sites. Though Sysco’s Columbus operation will close, many of the 250 employees there will remain employed in that territory, though they will report to locations in other cities, Mr. Palmer said. For example, some drivers and salespeople will continue to live and work in Columbus but will be employed through the Cleveland warehouse. The plant closing “will probably increase activity at the warehouse and with the drivers” in Cleveland, Mr. Palmer said. “When a certain warehouse picks up part of the service territory of another warehouse, they receive more products across their docks, they will probably stock more products and more products will leave their docks,” he said. Mr. Palmer doesn’t expect to know until mid-June how many jobs might open up in Sysco’s Cleveland location due to the increased volume. — Shannon Mortland
Reminger in Cleveland, argued his first case at the U.S. Supreme Court on Jan. 13. Last week, he found out he lost. Still, Mr. Coakley said in an e-mailed statement that “it was an honor” to have argued in front of the high court. “Arguing before the U.S Supreme Court is as good as it gets for a trial lawyer,” he said. “Everyone should be so lucky.” The case, Jerman v. Carlisle, was remanded to the U.S. District Court on a 7-2 vote, with Justices Anthony Kennedy and Samuel Alito dissenting. The case involved the Fair Debt Collection Practices Act and whether a legal error made in good faith excused a debt collector from a civil liability. Mr. Coakley represented a Beachwood attorney and her firm, Carlisle, McNellie, Rini, Kramer & Ulrich. “It’s surprising how a case can develop from a seemingly simple issue to one of far greater proportions over time,” he said. “Like an acorn into an oak tree.” —Arielle Kass
A crush on the Crushers
■ George Coakley, a partner at the law firm
■ It’s easier to sell tickets to a baseball stadium when, y’know, there’s a stadium. What is this, some complex riddle? Nope, just the experience of Lake Erie Crushers general manager Ryan Gates, who said fans and potential corporate sponsors have been more responsive this spring now that they’ve seen the product in action. The year-old independent Frontier League team, which plays at All Pro Freight Stadium
WHAT’S NEW
BEST OF THE BLOGS
High court appearance gives attorney a high
Excerpts from blog entries on CrainsCleveland.com.
Buildings aim to win a contest by losing energy consumption
COMPANY: Innovative Medical Equipment, Cleveland PRODUCT: Sootheaway About 36 million Americans suffer from migraine headaches, according to the American Headache Society, and Innovative Medical says the Sootheaway can help ease their pain. The company doesn’t claim the thermoelectrically heated and cooled therapy device is a cure for migraines. Rather, the product helps relieve migraine, tension or stress headache pain in the forehead, temples and sinus regions by continuously circulating water through a therapeutic pad that has been engineered to target specific pain areas. Pain relief “is delivered directly to the area of pain, swelling, bruising or discomfort, and the temperature remains consistent throughout the treatment,” Innovative Medical says. “In addition to the migraine trigger points, the Sootheaway pain relief pads target additional pain sites like the back, shoulder, neck, knee (and) abdomen.” Sootheaway was developed in conjunction with Dr. Bahman Guyuron, chairman of the Department of Plastic Surgery at University Hospitals Case Medical Center. For information, visit www.sootheaway.com. Send information about new products to managing editor Scott Suttell at ssuttell@ crain.com.
■ The Environmental Protection Agency is getting into the contest business with a goal of encouraging buildings to trim energy consumption, and a Cleveland Clinic building in Solon is one of the contenders. The National Building Competition is patterned after TV weight-loss show “The Biggest Loser,” according to the Green blog of The New York Times. Fourteen contestants, selected from among 200 applicants, will be encouraged to improve their energy efficiency by taking simple steps such as turning off lights, unplugging power charges and switching to automated temperature controls, the blog noted. The winner, to be announced in October, will be the building that saved the most energy between September 2009 and this August. The Clinic’s nominee is its Solon Family Health Center. Other competitors include an office building in Midtown Manhattan, a department store in Southern California and elementary schools in Colorado and New Jersey.
As consumers cash out, technology catches up ■ Research from the Federal Reserve Bank of Cleveland was cited in an April 28 story in The New York Times about how a number of companies are working to create innovative ways for consumers to avoid cash and checks entirely and pay for almost everything via cell phone. This makes sense, The Times said,
just off Interstate 90 in Avon, opens its season at home May 21 against the Traverse City (Mich.) Beach Bums. At this time last year, the Crushers’ stadium still was being completed. Mr. Gates said last week the team already has sold 10% more season tickets than for all of last season, and is 33% above the number of 12-game, $99 packages it sold all of 2009, when the Crushers averaged 3,013 at the 5,000-seat park on their way to the league title. “Now we have a story to sell,” Mr. Gates said. “Some businesses needed to touch (the product). Many are saying, ‘We wanted to get in on the ground floor, but just weren’t sure.’ ” — Joel Hammond
If you need a pen, bank on Arielle ■ The pen wars continue. KeyBank Cleveland district president Lisa Oliver found me last week at a speech to members of the CFA Society of Cleveland, where KeyCorp vice chair Beth Mooney was talking. Ms. Oliver wanted to see my KeyBank pen. When I pulled out a handful of writing instruments, there was a PNC pen — courtesy of Paul Clark, PNC regional president in Northern Ohio, who sent me a half-dozen after I used a Key pen while interviewing him in March — but this time, none with a red KeyBank logo. Ms. Oliver reached into her own purse to hand me a black Paper Mate Breeze with Key4Women, KeyBank and the bank’s logo — all in white — on the side. — Arielle Kass
because while cash payments are difficult to track, “the number of noncash transactions in the United States grew from fewer than 250 a person in 1995 to more than 300 in 2006,” and it almost certainly is even higher today. “Data on the stock of small-denomination bills and destroyed bills indicates that the use of cash peaked in the mid-1990s and has been declining since, two economists at the Federal Reserve Bank of Cleveland found,” the newspaper reported. (The research was conducted by Paul W. Bauer and Daniel Littman. It’s available at http://tinyurl.com /2fl9cs9.) Several companies have developed small credit card scanners that plug into a cell phone and for a small fee enable any individual or small business to turn a phone into a credit card processing terminal, The Times said. There’s a pretty slick video with the story that explains how it all works.
We’re just shocked to see our city on this list ■ If you’re a glutton for punishment, you can take a look at Forbes.com’s new list of America’s worst cities for jobs. Cleveland is ranked as the eighth-worst big city for finding a job. Forbes.com noted that a recent study by the New America Foundation found that two employment sectors stand out as particularly bad in this recession: construction, where employment is off nearly 25%, and manufacturing, which has suffered a 15% decline. It’s those struggles that explain why the worst cities for jobs list is so heavy on Sunbelt and Great Lakes states, Forbes.com said.
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