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$1.50/FEBRUARY 22 - 28, 2010

Vol. 31, No. 8

Forest City eyes Pepper Pike change

INSIDE Downtown coming alive The East Fourth Street area’s momentum is spreading as shops and eateries, such as Crepes De Luxe (below), have popped up along Euclid and Prospect avenues. Page 3

Pricey suburb resisting request to include modest townhouses in high-end subdivision By STAN BULLARD sbullard@crain.com

In the hope that less may prove more after the collapse of the newhome market, Forest City Enterprises Inc. wants the tony enclave of Pepper Pike to authorize a change in plans for the townhouse portion of the plush Sterling Lakes subdivision so that Pulte Homes could build modestly priced units there.

Pepper Pike officials want Forest City to stay the course and offer townhouses costing upwards of $400,000. The Cleveland-based megadeveloper instead hopes to clear the way for units in the $200,000 to $300,000 range, low for new construction by the standards of the pricey East Side suburb. Authorization of the change would allow Forest City’s land unit to sell the sites to Pulte, a national

builder with the financial resources to undertake such a project, something that has eluded local builders. Tom Gerber, project manager for Sterling Lakes at Forest City, said his company recently put part of the nearly 13-acre site under contract to Pulte but needs the change OK’d by the city within the next half-year to close the transaction. Pepper Pike Mayor Bruce Akers recently polled the suburb’s City Council and found too little support for proceeding with a revision of the city’s development agreement with Forest City for Sterling Lakes, which consists of single-family homes and

PLAYING THE WAITING GAME Manufacturers deal with unusually long lead times in obtaining steel, while facing more demand from customers to fulfill orders By DAN SHINGLER dshingler@crain.com

townhouses. “It’s up to (Forest City) to propose suitable changes,” Mayor Akers said. A frustrated Mr. Gerber said city officials “just don’t understand” the need for the revision in light of changes in the housing market since 2005, when the subdivision was begun after three years of planning. “Do they think we will sit and wait for the economy to come back?” Mr. Gerber asked. “We will have to come up with something else. We don’t know what.” Forest City clearly confronts a dilemma. While single-family home See CHANGE Page 6

Possible sewer district fee has property owners abuzz By JAY MILLER jmiller@crain.com

Commercial property owners in parts of Cuyahoga, Lorain and Summit counties are beginning to realize that they may have a new cost of doing business on their hands, and some of them aren’t happy about it. The property owners, through attorney Sheldon Berns, are watching two lawsuits in area common pleas courts and are questioning a new fee for what is called storm water management. The Northeast Ohio Regional Sewer District is seeking to impose the fee on property owners in 50 communities in Cuyahoga County and 11 towns in Lorain and Summit counties. Mr. Berns said his clients might file a motion to intervene in a Cuyahoga County lawsuit initiated by the sewer district. There, the district is asking the court to grant it the right to manage storm water and to impose a user fee to cover the cost of mitigating storm water runoff. Mr. Berns would not identify his clients by name but said they include apartment complex owners, office building developers and shopping centers. He argues in a 2 ½-page memorandum to his clients that money to manage storm water problems should be provided by a tax approved

S

ome Northeast Ohio manufacturers have discovered a new precious metal — steel. It’s becoming more expensive, takes longer to get and, in some cases, is even tough to find, manufacturing executives say. “The lead times on steel are driving the lead times on manufacturing generally,” said Chris DiSantis, president of Cleveland-based Hawk Corp., which sells clutch and brake materials and fabricated components that include steel as an ingredient. “We’re hand-to-mouth on steel of certain grades,” Mr. DiSantis said. At times, he said, plants must wait for steel before they can produce certain items, and production runs end when the supply of steel is used up. Mr. DiSantis is far from alone. See STEEL Page 4

08

See FEE Page 18

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CRAIN’S CLEVELAND BUSINESS

COMING NEXT WEEK Law firms more often going green More and more Northeast Ohio law firms are striving to create sustainable work environments. We’ll delve into the reasons why and touch on other trends in the legal community and employment law in next week’s Legal Affairs section.

REGULAR FEATURES 30 Years and Counting ...11 Classified .....................18 Editorial .......................10 Going Places................12 Letter ..........................11

List: Internet service providers .................17 Milestone ....................19 Personal View ..............10 Reporters’ Notebook ....19

WWW.CRAINSCLEVELAND.COM

FEBRUARY 22-28, 2010

STUCK IN NEUTRAL Small business owners are only slightly more optimistic about the direction of the economy today than they were last spring, when the recession held a tighter grip on the country, according to a new survey from the National Federation of Independent Businesses. The group’s “Index of Small Business Optimism” gained 1.3 points in January, rising to 89.3. (The survey is indexed to 100, with figures below that indicating waning optimism.) Here’s what small business owners say are their biggest problems:

Problem

Jan. 2010

Jan. 2009

Poor sales

31%

28%

Taxes

22

19

Government regulations

13

11

Insurance cost/availability

8

9

Competition from big companies

7

6

Credit/interest rates

5

4

Cost of labor

4

5

Other

4

6

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Senior reporter: Stan Bullard (sbullard@crain.com) Reporters: Shannon Mortland (smortland@crain.com) Jay MIller (jmiller@crain.com) Chuck Soder (csoder@crain.com) Dan Shingler (dshingler@crain.com) Arielle Kass (akass@crain.com) Designers/reporters: Joel Hammond (jmhammond@crain.com) Kathy Carr (kcarr@crain.com) Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks (chendricks@crain.com) Marketing coordinator: Laura Franks (lfranks@crain.com) Advertising sales director: Mike Malley (mmalley@crain.com) Account executives: Adam Mandell (amandell@crain.com) Dirk Kruger (dkruger@crain.com) Nicole Nolan (nnolan@crain.com) Dawn Donegan (ddonegan@crain.com) Business development manager & classified advertising: Genny Donley (gdonley@crain.com) Office coordinator: Toni Coleman (tcoleman@crain.com) Production manager: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Kristen Wilson (klwilson@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com) Circulation manager: Erin Miller (emiller@crain.com) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-888-909-9111

Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: Corporate circulation/audience development director G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year, $59; 2 years, $102. Outside of Ohio: 1 year, $102; 2 years, $180. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-888-909-9111 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation


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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

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State fund may fuel advanced energy growth

INSIGHT

Strickland’s plan would include $40 million in tax money, require matching venture capital By CHUCK SODER csoder@crain.com

RUGGERO FATICA PHOTOS

Jim Holcepel (left), who worked in corporate-level book sales for 20 years before he was laid off, has high hopes for his new venture, Crepes De Luxe. The stand recently opened in the food court of the Arcade in Cleveland.

DOWNTOWN DELIGHT Despite glut of building foreclosures, empty space, more eateries and shops sprout up in East Fourth area By STAN BULLARD sbullard@crain.com

J

im Holcepel can’t wait for spring, and not just because he can feel the winter’s cold radiate from customers at Crepes De Luxe, a stand he opened two months ago in the food court of the landmark Arcade in downtown Cleveland. “We know January is the worst time to start a restaurant. This is when restaurant owners take long vacations,” Mr. Holcepel said of the venture he started with his brother, Bob, who has run a crepe stand at the West Side Market for five years. “This is a good time to build the business because we figure we can work out the kinks

by spring, when people don’t have to put on a coat to go outside.” Mr. Holcepel is looking to build something for himself after a layoff ended a 20-year career in corporate-level book sales. So far, sales are on plan. Moreover, he feels good vibes in the part of downtown where he’s chosen to locate. “I think there is a lot happening quietly down here,” Mr. Holcepel said. “There is a certain attraction to the area around East Fourth Street.” Despite a spate of building foreclosures downtown, a handful of new food and retail ventures have taken root along Euclid and Prospect avenues between East Ninth Street and Public Square. See RETAIL Page 7

Michael Goldberg’s investment firm won’t be applying for any money from Ohio’s new Energy Gateway Fund. His firm doesn’t even make investments in advanced energy companies. Regardless, the managing partner of Cleveland’s Bridge Investment Fund is among those in Ohio’s venture capital community who think the program will help fuel the state’s nascent advanced energy industry. Introduced during Gov. Ted Strickland’s Jan. 26 State of the State address, the Energy Gateway Fund aims to distribute $30 million in federal stimulus money and $10 million from the Ohio Bipartisan Job Stimulus Plan to a few venture

capital firms that commit to using the money to finance advanced energy companies and projects in Ohio. Investors would be required to raise at least one matching dollar for every tax dollar they receive. Mr. Goldberg said the plan is a good one, partly because it mimics the highly touted Ohio Capital Fund and partly because there “are not as many funds in Ohio that have energy or alternative energy as part of their investment focus.” His firm, for example, focuses on health care. Four venture capital investors praised the Energy Gateway Fund’s plan to invest in venture capital firms that in turn would finance companies in the state. The Ohio Capital Fund, a $150 million “fund of funds” created in 2005, has a similar setup. See FUND Page 6

THE WEEK IN QUOTES “The mills are pushing out delivery (schedules), they’re taking orders and they’re raising prices. … I can’t see where the demand is coming from.”

“Make-work projects never create jobs. They merely transfer money that the government doesn’t have from some productive area to the make-work area.”

— Herb Neides, president of Clifton Steel in Maple Heights. Page One

— From a Letter to the Editor. Page 11

“We think we can will ourselves out of a problem. … But you can’t apply logic and analysis when there’s a chemical imbalance in the brain.”

“It’s not appropriate to say, ‘Are you depressed?’ … The focus is supposed to be on functions, not a diagnosis.”

— Julianne Kurdila, chief assistant director of law with the city of Cleveland. Page 13

— Frank Hickman, president of disability and elder law firm Hickman & Lowder Co. in Cleveland. Page 15

Suit against Invacare stems from wheelchair fire, woman’s death By CHUCK SODER csoder@crain.com

Subject of past scrutiny, Elyria company stands by its increased safety measures

Wheelchair maker Invacare Corp. is facing a lawsuit that sounds awfully familiar. The son of a Louisiana woman who burned to death last year in an Invacare wheelchair is suing the Elyria company, accusing Invacare of designing an unsafe product. Invacare found itself in a similar situation in the 1990s, when it faced a string of lawsuits accusing the company of designing power wheel-

chairs with circuitry that was prone to starting fires. Three of those lawsuits were related to instances in which the wheelchair users died. Invacare in 2000 followed up by recalling 215,000 power wheelchairs built since 1985, adding safety features intended to prevent fires. In this case, however, Invacare has not accepted responsibility for causing the fire that killed 87-yearold Merrimac Ellis last Sept. 13.

Invacare spokeswoman Lara Mahoney noted that the Louisiana State Fire Marshal’s office has listed the cause of the fire as “undetermined.” Ms. Mahoney also said the safety features that Invacare put into its wheelchairs following the 2000 recall were present in Ms. Ellis’s chair, a Pronto M51 built in 2002. The model’s electrical system design is unrelated to the design used in chairs that caught fire in the

1990s, Ms. Mahoney said. “We stand very fully behind the safety of our products,” she said. However, the fire marshal’s report does not exonerate Invacare. The investigator who inspected the scene the day of the fire wrote that the fire likely began in the mechanical area under the chair’s seat, “possibly from an electrical malfunction.” The flames, according to the report, appeared to have come

from the area below the seat of the chair, which is where the chair’s wiring is located. The wiring itself was melted, as was the plastic around the bottom of the chair. The report states that Ms. Ellis did not smoke, and no candles were located in the immediate area. Fire damage was limited to the area of the chair. Firefighters arrived while the woman was still burning and put out the flames before they spread, according to John Randall Whaley, one of the two attorneys See INVACARE Page 8


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Steel: Lack of demand keeps some mills offline continued from PAGE 1

Manufacturers generally say they must wait longer for the steel they need — a development that comes at a time when their own customers are pressing them for faster delivery of products to compensate for their own low inventory levels. “Lead times are getting long. Fourteen weeks or longer is not unusual” between the time an order is placed and a shipment is received, said Charlie Kerr, owner of Kerr Lakeside, a Euclid manufacturer of high-quality socket screws. As recently as last October, Mr. Kerr said, lead times for the same steel were only four to six weeks. “What used to take four to six weeks to get now takes eight to 12 weeks,” echoes Jerry Zeitler, president

of Die-Matic Corp., a Cleveland company that makes precision metal stampings. Ironically, it’s not demand that’s causing the problem but a lack of it. Too few people are buying steel to keep the nation’s mills running full throttle, steel experts say. That situation leaves those who want to buy the commodity struggling to be first in line for the steel that is made. “The mills are pushing out delivery (schedules), they’re taking orders and they’re raising prices. … I can’t see where the demand is coming from,” said Herb Neides, president of Clifton Steel in Maple Heights, which processes and fabricates super-tough steel used in military armor, recycling shredders and railroad equipment.

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Lack of leverage The situation does not look like it’s going to improve quickly, according to two steel service center operators in the Cleveland area. Both declined to be identified for fear that their customers’ customers would worry about weak links in what already are fragile supply chains. “Steel is available, but lead times have moved out two to three weeks beyond normal lead times,” said the owner of one service center who cuts, parcels and ships steel to local manufacturers. “Prices are moving upward quicker than any of us expected — but the increases are supply-controlled, rather than demand-driven.” The president of another service center added, “If you place an order for steel, realistically we’re about eight to 10 weeks on lead times. (The mills) are quoting us seven to eight weeks, but we’re seeing eight to 10.” Most don’t blame the mills, which they say are using a business model that works by operating only the mills and blast furnaces that can sell 75% or more of their total capacity. Mr. DiSantis, who used to work at a steel mill in Youngstown, said he understands what the mills are doing and why. But what works for the steel mills can make life tough for small and midsize manufacturers. Even with nearly 1,000 employees, Hawk Corp. does not have the leverage required to cause a new blast furnace to come online, the way a Caterpillar or General Motors might. “The mills are leveraging everyone to buy more — they don’t like short runs and they don’t like small quantities,” Mr. DiSantis said.

Strength of steel Those companies that are able often are building their steel inventories to make sure they have enough of the metal on hand to meet demand for their products. But even that is becoming a challenge, as the mills have been increasing the minimum amounts of steel that a customer must order to secure a delivery, manufacturers say. In Cleveland, ArcelorMittal reopened its rolled steel mill earlier than many expected. The service centers give ArcelorMittal high marks for doing so and also for being one of the more reliable providers of steel today. “We continue to monitor production levels and adjust them in line with demand from customers,” an ArcelorMittal spokeswoman said. The availability of steel likely won’t get better until the economy has fully recovered and there is enough demand to cause more idled mills and blast furnaces to be restarted, the service centers say. It’s a different scenario from past recessions, when mills remained open but could not sell the steel they were producing. The mills, it seems, have learned lessons from the past. “The steel industry, over the past 15 years, has gotten stronger and stronger and they’re exerting their leverage,” Mr. DiSantis said. ■ Volume 31, Number 8 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)909-9111. REPRINT INFORMATION: 800-290-5460 Ext. 136


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FEBRUARY 22-28, 2010

Change: Property value decline an issue continued from PAGE 1

sites at Sterling Lakes are selling slowly, the townhouse area dubbed “Sterling Pointe” is dead in the water: Eight, in various stages of construction, are available; six have sold in the $400,000 range since 2006. The existing plan calls for a total of 93 townhouses. A major sticking point between Forest City and the suburb over any revision is in how the parties view development of the remaining land, which would shape the project’s density.

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Mr. Gerber said Forest City just wants to develop the remaining townhouses in Sterling Pointe’s first two phases, which encompass about eight acres. According to Mr. Gerber, the change would increase the number of units in the first two

phases by four, to 97 from 93. It would leave empty about five acres that were envisioned as a third phase; Mr. Gerber says that land doesn’t figure into a restart of the project. However, Pepper Pike officials see Forest City’s request as boosting the potential townhouse count by 39, to 132 from 93, because it believes it must consider the possibility that all 13 acres of townhouse land might be developed, Mayor Akers said. Not taking that precaution poses the risk a developer might return later to go after the last five acres with the most recent changes for what type of townhouses are built as its precedent. Scott Newell, a Pepper Pike councilman, said several members of City Council share the concern of the handful of Sterling Lakes townhouse owners who paid as much as

Fund: State money fills a gap continued from PAGE 3

The new fund also is like the Ohio Capital Fund because of its policy requiring venture firms receiving money to employ someone in Ohio to look for investments in the state. The Ohio Capital Fund’s policy has led several investment firms from outside Ohio to open offices here. Such policies not only bring the matching dollars and expertise of those venture firms to Ohio, but they also help members of the state’s economic development and venture communities broaden their ties with venture groups elsewhere. The two funds are not identical in makeup, however. For one, investors will use Energy Gateway Fund money to fund multimillion-dollar, com-

mercially proven advanced energy projects. The Ohio Capital Fund, by contrast, does not focus on one industry and tends to fund more early stage projects, said Mark Barbash, chief economic development officer for the Ohio Department of Development. “What we lacked was funding for the middle range of projects,” Mr. Barbash said. The state plans to start deploying the money in March, and firms that receive it must invest it all by April 2012. Within 10 years, the state expects to receive the money it invested as well as an additional 10%, all of which would be put back into the fund. Most venture capital firms make money when their investments are bought by other companies or go public.

An eager taker

WEATHERHEAD

EXECU T IV E E D U C AT IO N

INNOVATIVE PRACTICES

Among those planning to apply for the money is Cleveland’s Early Stage Partners, said Richard Stuebi, who is both a partner at the venture firm and the BP Fellow for Energy and Environmental Advancement with the Cleveland Foundation. If Early Stage Partners receives the money, its new investments likely would focus solely on advanced energy, he said.

$500,000 for their units and now worry about seeing their property values erode if less-expensive townhouses arise. “Remember where we started,” Mr. Newell said. “This suburb allows one house per acre. The city compromised in allowing Sterling Lakes in. I think a lot of people would like to see (Forest City) hang in until the market comes back.” Another big difference between the city and the developer stems from the designs resulting from allowing townhouses with smaller footprints. The change yields taller units, which move the master bedroom to an upper level from the first floor — a modification likely to deter older, more affluent buyers. A Pulte spokesman at the company’s headquarters in Bloomfield Hills, Mich., declined comment. ■

Mr. Stuebi likes that the program’s money will be distributed by private investors rather than government agencies, and that it will target advanced energy, which he described as a “gargantuan opportunity.” “Ohio has the opportunity and needs to get on the train,” he said. Draper Triangle Ventures of Pittsburgh, which opened offices in Cleveland and Cincinnati after receiving Ohio Capital Fund money, won’t apply for Energy Gateway Fund money because it is too busy investing its current fund in a broad range of technologies, said Mike Stubler, Draper Triangle managing director. Nonetheless, he sees the value of the advanced energy initiative. Mr. Stubler said there still isn’t enough venture capital in the region to fund all the good deals, and it takes a lot for local companies in an unproven industry to attract the attention of investors outside the state. “It’s difficult — nearly impossible — to manage early stage investments long distance,” he said. Paul Cohn, vice president and regional director for the Ohio Capital Fund, said he, too, likes the Energy Gateway Fund program, which he did not help create. There’s still a need for more capital to fund hightech projects, particularly later-stage projects that can’t get money from the state’s Third Frontier technology program, Mr. Cohn said. ■

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Retail: East Fourth momentum seemingly spreading to nearby areas continued from PAGE 3

Fresh eyes, fresh look

While downtown historically churns such ventures, the startups are outnumbering the shutdowns and are spreading beyond the East Fourth entertainment district. “You are starting to see the new Euclid Avenue emerge,” Tom Yablonsky, executive vice president of the Downtown Cleveland Alliance, said. Part of the revival stems from completion last year of the $200 million HealthLine, which spruced up the streetscape from Public Square to University Circle along with introducing hybrid bus-rail service. East Fourth also gained momentum last year with several restaurant openings despite the sour economy. And more appear on the way. Developer K&D Group is proceeding with a $60 million conversion of the long-dormant Atrium Office Plaza to apartments, office and retail space. On the Prospect Avenue side of the Atrium complex, the Caddyshack Lounge, a sports bar featuring electronic golf simulators, is going in, as is Titans, a gym, tanning center and café. And on the Euclid Avenue side, Wyse Advertising recently moved its offices into the building’s first floor.

Sarah Hawkins, the Arcade’s manager, said talks are under way with four more prospects for the nearly 120-year-old structure that houses a Hyatt Regency Hotel on its upper floors. The Arcade is gaining leasing momentum even though it is the subject of a foreclosure action. The Leader Building, immediately east of the Arcade, also is in foreclosure but still landed a pizza shop called

“Guy’s Pizza Co.” within weeks after Domino’s Pizza closed nearby. Closer to Public Square, construction workers have begun outfitting the storefront of the old W.T. Grant Co. Building at 236 Euclid Ave. for Zoup!, a franchise selling salads, wraps and soups. The owner of the new Zoup! is Paula Elliott, who took early retirement from valve maker Swagelok Co. in Solon to start her own business. She said she gravitated to Euclid

because she wants to serve the daytime worker population and likes the way the redone street, with brick pavers, landscaping and sculptures, looks today. Even though she is a lifetime Clevelander, she doubts she would have given the same shot to preHealth Line Euclid. Likewise, as a Cleveland native, Jim Holcepel said the idea of setting up shop at the Arcade enthralled him. However, he still did hourly body

counts before committing to the landmark to ensure foot traffic was there. “A lot of merchants here say it’s not what it was a few years ago,” Mr. Holcepel said. “A lot of us remember a lot of things that used to be down here. But the 20- and 30-year-olds here don’t remember any of that,” he sad. “All they know is there is a new bar here or a bowling alley there. We can’t look at (downtown) for what it was, but what it will be.” ■

Young blood moves in Some real estate insiders privately worry a large office in first-floor space might dilute retail synergy from the street. However, developer Ari Maron, whose MRN Ltd. owns competing properties on East Fourth, sees Wyse as a plus. He even quips that the ad agency’s presence is the start of the “Madmen District” downtown, a reference to the popular cable TV drama about Madison Avenue’s golden years. “The other big piece of this is that young technology and marketing companies and people who work for them are starting to see this part of downtown as a place to live and hang out,” Mr. Maron said. For example, MRN landed digital marketing agency Rosetta Corp. as a tenant for its old National City Bank Building, 629 Euclid. Rosetta will move about 400 employees downtown this spring from Beachwood. Mr. Maron recalls that when Terry Coyne, Rosetta’s broker, originally called MRN, “he asked, ‘How can I get as close to East Fourth Street as possible?’ Now, he’s not the only one calling. People now see the vision of East Fourth that we had as a reality. A new buzz is being created. The number of calls I get (about space) is really different than a year ago.” That buzz is starting to spread beyond the stretch of vaudeville-era buildings on East Fourth. In the food court at Colonial Marketplace, Hungarian Kitchen — which boasts it is 100% Magyar — opened in December offering ethnic staples such as stuffed cabbage as lunch fare. One of the most talked-about restaurants to open downtown is Chocolate Bar, which offers chocolate-themed entrées and desserts in the former Vivo restaurant space on the Euclid Avenue side of the Arcade. In the other corner of the Arcade’s Euclid side, Presto Sandwich provides a downtown location for the purveyor of fresh soups and salads in Fairview Park. Five other food or retail shops opened this winter in the Arcade. And another tenant, Designer Suits, relocating from 1110 Euclid, will open this month on the Arcade’s Superior Avenue side.

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FEBRUARY 22-28, 2010

BRIGHT SPOTS The Entrepreneurs EDGE & Crain’s Cleveland Business present

The 2010 Crain’s Leading EDGE Award Celebrating NE Ohio mid-market companies who are creating great value for themselves and the region.

Call for Compan y Nominations • Deadline Fr iday, March 5, 2010 Each year, the Entrepreneurs EDGE honors 100 middle-market companies. EDGE invites you to submit your 2010 company nomination or nominate a company that you know. To qualify, a company must have annual net sales of

Bright Spots is a periodic feature in Crain’s highlighting positive business developments from across Northeast Ohio. To submit information, e-mail Scott Suttell at ssuttell@crain.com. ■ Rosenbaum & Associates Inc., a certified public accounting and business advisory firm, has more than doubled its space by moving into 2,500 square feet at 3690 Orange Place, Suite 420, in Beachwood. The firm, formerly at 28001 Chagrin Blvd. in Woodmere, said the new office “provides a central location as well as more space for future growth.”

■ Cleveland-based Home Team Marketing said it has partnered with Fathead LLC, the maker of sports and entertainment graphic products, in creating wall graphics for high schools across the country. Home Team Marketing is leveraging its relationships with high schools to create Fatheads of high school helmets and logos, which are available at www.fathead.com. Participating schools will receive a percentage of sales on all products bearing the schools’ marks, the marketing company says. Schools can earn more profits by selling the Fatheads through their own book and spirit stores.

between $1 and $750 million, export some goods or services outside of North-

Invacare: Recalls issued in past

east Ohio, and be located in the 17-county area of NEO. For more information

continued from PAGE 3

and the nomination form, go to www.edgef.org or email LEA@edgef.org.

representing plaintiff James Ellis. “It was a horrible death,” said Mr. Whaley, of Neblett, Beard & Arsenault, a law firm based in Alexandria, La. The lawsuit, filed Feb. 11 in the Fourth Judicial District Court for the Parish of Morehouse, names several defendants, including the senior citizens apartment in Bastrop, La., where Ms. Ellis lived, and the company that made the sprinkler system, which failed to turn on. Between 1993 and 2000, Invacare compiled more than 30 complaints related to problems with its chairs’ battery charger wiring, according to news coverage of a lawsuit related

to the problems. Among those complaints were two instances where people burned to death in 1994 and 1995, but no lawsuits were filed related to those deaths, according to a written statement Invacare CEO A. Malachi Mixon III released in 2002 following the news coverage. The company first learned of a death that appeared to be linked to a wheelchair defect in 1999, and it decided to start recalling chairs when a second death was reported that same year, according to Mr. Mixon’s statement. Invacare is the world’s largest maker of wheelchairs. The company also makes other home health care products. ■

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FEBRUARY 22-28, 2010

PUBLISHER/EDITORIAL DIRECTOR:

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

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

Scott Suttell (ssuttell@crain.com)

OPINION

Look south

I

n the ongoing effort to create a strong biotech component to Northeast Ohio’s economy, the research work going on at the Cleveland Clinic, University Hospitals and Case Western Reserve University usually grabs the most headlines. However, about 40 miles south of University Circle, a second front is developing in the region’s push to become a globally recognized center of medical innovation. Less than 18 months since its launch, the Austen BioInnovation Institute in Akron is starting to make its presence felt by rewarding collaboration among researchers at the organizations that established the institute. Last week, the institute issued $680,000 in grants to eight teams of researchers who are engaged in efforts that range from developing a noninvasive method of monitoring ulnar nerve strain to creating materials that would promote natural bone growth in patients with debilitating diseases, including cancer. An exciting aspect of the research activity that the institute hopes to encourage is the sharing of brain power that is taking place across organizations. More than two dozen teams of researchers applied for the grants, and each team had to be composed of investigators from at least two of its five founding institutions — Akron Children’s Hospital, Akron General Health System, Northeastern Ohio Universities Colleges of Medicine and Pharmacy, Summa Health System and The University of Akron. The object is to take individual researchers from diverse fields and blend their knowhow to come up with innovative materials and treatments that they likely could not devise as readily without the crossfertilization. And so, you find Dr. Jun “Jack” Hu, associate professor of chemistry at the University of Akron, working with Dr. Deepak Edward, head of the department of ophthalmology at Summa, to come up with a liquid crystal film that would be applied to contact lenses and could measure blood sugar levels in people with diabetes. Such innovations not only would provide obvious benefits for patients, but also hold the potential for the creation of companies that would commercialize these promising ideas. And nothing could make the people behind the BioInnovation Institute happier. As stated in its vision statement, the institute is “dedicated to becoming a global leader in biomaterial and medical research, education, clinical services and commercialization; and a driver of transformative economic, social and health benefits for Greater Akron.” The italics are the institute’s. Its founders want the institute to be a force for positive change in the region. It is off to a good start toward that goal.

Daring Danny

A

s our sports blogger Joel Hammond wrote last Thursday, give Cleveland Cavaliers GM Danny Ferry credit for guts in pulling off the trade that brought the team sharpshooting power forward Antawn Jamison. And if you want to find out why it was a gutsy move — and a potentially risky one beyond this season — check out Joel’s blog, at CrainsCleveland.com.

FROM THE PUBLISHER

Forbes, not Cleveland, the punch line

S

takes 10 words before it reminds readers o I used to think it was just comeof the Cuyahoga River fire. Next up was dians and screenwriters who were the 1978 fiscal default, brought on, in so lazy and uncreative they had to part, by a young and fiery mayor, Dennis beat up Cleveland by making the Kucinich (Forbes kindly left him out). city a punch line. Now we can add a What else? Of course, the fact that our national business magazine. sports teams haven’t won a title since the Forbes didn’t mind when it could sail Browns of 1964. into town on the publisher’s yacht and Forbes has the right to sell “corporate profiles” at thoupublish what it wants, and it sands of dollars apiece. Now it BRIAN certainly does. It seems the has made the city a punching TUCKER magazine has decided that its bag with its contrived rankings web strategy will be driven in and surveys. Two weeks ago, part by these rankling rankings Cleveland was the butt of its rather than good journalism. bad-weather rankings. Last week, It seems that in the age of we were atop their list of “Amerdigital journalism, it’s all about ica’s Most Miserable Cities.” what drives traffic, not what It’s as if their web strategy is might help society. If we’re not mimicking the print model of careful, our publications’ digital U.S. News & World Report, a onceoperations will become the print versions proud but now third-place player in the of TMZ.com, running anything that will national newsweekly magazine battle stir people up, end up in blogs and drive that relies on its rankings to stay afloat. more traffic to their web sites. You know, the ones the colleges and hosIf this keeps up, we’ll be able to highpitals always get up in arms about. jack that famous quote and say “we get This won’t surprise you: Forbes’ story

the journalism we deserve.” **** KUDOS TO THE CAVALIERS, owner Dan Gilbert, GM Danny Ferry and all the other members of the executive team who are helping build the franchise into one that can contend for a championship each and every year. Of course, the key to that has been LeBron James, but Dan Gilbert’s willingness to spend money (such as on improvements to Quicken Loans Arena and the new practice facility halfway between downtown and LeBron’s home) has made everything else possible. Last week’s trade that brought Antawn Jamison here was nothing short of brilliant, and it shows that the Cavs are making all the right moves to ensure that LeBron stays here past this season. Every NBA fan now will be surprised if it isn’t the Cavs and the Lakers in the NBA Finals, and every Cleveland fan believes it’s LeBron’s time. And theirs. The heck with Forbes magazine; bring on the playoffs. ■

PERSONAL VIEW

To recover, retain company headquarters By HERB KLEIMAN

O

ur region has experienced economic erosion for 10 to 15 years. Perhaps we can change our luck, if we can persuade companies from moving their corporate headquarters. The most painful emigrations are those exiting to go out of state, such as BP America, TRW and OfficeMax. Others depart the city for the suburbs (Parker Hannifin, Eaton Corp.) All cause much anguish and second guessing. A case in point is already upon us. American Greetings, a Fortune 500 company, is threatening to move and, maybe, depart Ohio. With nearly $2 billion in revenues and 18,000 employees, the company is considering the closure of the corporate headquarters from the current site in Brooklyn. The company, more than a

Mr. Kleiman is the president of Kleiman Associates, a marketing and communications firm in Shaker Heights. century old, is managed by the third and fourth generations of a family with numerous business, social and philanthropic ties to Greater Cleveland. As if this situation was not bad enough, consider the plight of Dayton. Its traditional leading employers have been WrightPatterson Air Force Base and NCR Corp. NCR already has announced a relocation to suburban Atlanta. The company traces back to 1884 as National Cash Register; it rose to pre-eminence as the leading manufacturer of cash registers under John Patterson. With the transition into computers, NCR eventually was eclipsed by stronger competitors, such as IBM. Now NCR has 1,200 employees in Dayton and 20,000 worldwide.

During its heyday as the cash register goliath, the company was inextricably related to Dayton. NCR was the city’s major employer for many years. The roots are strong and many, and the feeling of rejection must be severe. A company shifting its corporate headquarters creates economic shock waves. The most obvious is the loss of tax revenues at the corporate and personal level. This loss is total if the company ventures out of state. There is also a ripple effect on local suppliers who have developed ties, often over many years. The impact is also non-economic, with deeper, more subtle repercussions. The Cleveland Orchestra just recently averted a strike, but the situation was touchand-go for a while. Almost every orchestra in the country, large and small, has been confronted with crucial challenges, such as See VIEW Page 11


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CRAIN’S CLEVELAND BUSINESS

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11

AND COUNTING ... What’s your favorite Cleveland restaurant of the past 30 years?

Crain’s Cleveland Business is celebrating its 30th year as Northeast Ohio’s premier source for business news with a special May 24 double issue, which will feature profiles of 30 of the 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 www.CrainsCleveland .com/30thAnniversary.

DENNIS GENTNER

PAUL PACE

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Richfield

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I do like Crop a lot. It’s very unique, interesting ingredients. It’s cool.

Mine’s Johnny’s (on) Fulton. I like veal and it’s old school.

You would think something like this would be easy. … How about Melt? The portions are big, the food is good, the line is really long but I heard they’re opening a new one soon.

LETTER

Take from one, give to another ■ I feel compelled to rebut Brian Boschen’s Feb. 15 letter supporting the $400 million, Cleveland-ColumbusCincinnati passenger rail project. Basically, his data are wrong. His biggest argument in favor is that this will create a bunch of jobs. Make-work projects never create jobs. They merely transfer money that the government doesn’t have from some productive area to the makework area, thus reducing the money available for jobs in the former. It’s like trying to raise the water level in a swimming pool by dipping water out of one end of the pool and pouring it into the other end. All of this wonderful “stimulus,” Mr. Boschen says, will create eco-

nomic development around the stations (just like Greyhound bus stations created economic development in the central cities; yeah, right) and, he infers, might even cause factories to be built in Ohio to manufacture rail cars. Factories to build flying saucers are more likely. Just because airlines fly airplanes here does not mean they’ll make them here. Then we have the energy argument. But what energy argument? Has anyone calculated how much energy the trains will save, if any? And what about, according to the proponents, the schedule will require an overnight stay in Columbus? Where’s the calculation of economic loss from spending two days eliminating a

two-hour auto trip each way? Finally, the traffic jam argument: The trains will not go where the traffic gridlock is; the gridlock is during the rush hour in major cities. If you want to reduce gridlock, why not build local transportation? Surprise! We already have it in RTA, which just announced it is laying off 12% of its employees and cutting routes. Ridership is down. Its service is subsidized to the tune of 70% of its cost by sales taxes, not ridership. What would the permanent taxes on this $400 million train boondoggle be? Finally, let’s look at the best way to get to Columbus in three hours if you don’t want to drive. We already have it. It’s called the Greyhound bus system. So leave the driving to us and get your cotton-pickin’ hands off the peoples’ $400 million. Bob Fritz Brecksville

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View: Anticipating changes crucial continued from PAGE 10

reduced revenue and attendance. The Cleveland Orchestra has a special difficulty since its market is the smallest among all the Big Five (the others are Boston, New York, Philadelphia and Chicago.) The orchestra’s funding from corporations and foundations has shrunk by more than 20% over the past decade. The shortfall is due to both the recent recession and the exodus of corporate donors. Fortunately for us, the orchestra has responded well by enlarging its base to Miami and introducing new formats to the regular audience, such as the innovative Friday evening schedule. Local arts and cultural organizations face similar challenges: ■ Corporations and foundations. These organizations are usually ranked first among benefactors due to the size of their giving. They often contribute tens of thousands of dollars, and, although few in number, represent a critical source of income. Probably a major factor in this giving is their role as “good corporate citizens” and as examples for others. ■ Executives. Senior managers of large organizations often are predisposed toward cultural attractions. They are usually white-collar individuals with a collegiate background. ■ Non-executives. These people provide the largest number of donors,

but each donation is usually tens and sometimes hundreds of dollars in value. This segment is the true lifeblood of the orchestra’s audience. There is a way to avoid the surprise claimed by industry and government.

A tested businessman or businesswoman with a record for past success should be chosen. He or she should be well-entrenched with the planners and movers, and perhaps even viewed as one. The position would be to anticipate changes that are particularly negative to these companies. ■

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FEBRUARY 22-28, 2010

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HEALTH CARE MENTAL HEALTH

Employee assistance programs aid recovery

PRESSURE COOKERS Employees in demanding fields more susceptible to depression, other issues

More firms offer resources to address mental illness and preserve productivity By SHANNON MORTLAND smortland@crain.com

By KATHY AMES CARR kcarr@crain.com

P

rovide help. It’s the most important move an employer can make in countering the effects of mental illness when it strikes an employee, said John Zagara, president of Zagara’s Marketplace stores in Cleveland Heights and Richmond Heights. If a mental illness goes undiagnosed, he said, “that affects their family, and it affects their work.” Indeed, U.S. employers incur annual costs of $80 billion to $100 billion due to issues such as lost productivity and absenteeism related to mental illness and substance abuse, according to a report by the Partnership for Workplace Mental Health in Arlington, Va. The report estimates 25% of working adults are affected by mental illness or substance abuse each year. Offering employee assistance programs can help reduce those costs. More employers are providing programs such as counseling to help people overcome or cope with their mental illnesses so they don’t lose productivity at work, said William Denihan, CEO of the Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County. “Employee assistance programs are very important,” added Diane McDaniel, human resources director for the Cleveland Metroparks. “It gives employers an avenue to provide confidential … (employee) assistance.” The Metroparks has an employee assistance program that includes group, family and individual counseling in areas such as mental illness, finances and substance abuse, she said. If an employee exhibits behavior that affects his or her work, Metroparks managers can refer workers to these programs, she said. Workers also can access them on their own. Though details of an employee’s participation in the programs are not provided to managers at the Metroparks, Ms. McDaniel said she receives reports on the effectiveness of the program.

A second chance Mr. Zagara has seen firsthand See HELP Page 14

13

J

MARC GOLUB

Julianne Kurdila, chief assistant director of law with the City of Cleveland, is among many professionals who struggle with mental health issues such as depression. Mental health experts say those who work in the legal industry often struggle with mental illness.

ulianne Kurdila for years went to work with a mask on, one that portrayed composure and optimism. But each night, she went home and cried. She had trouble falling asleep, and overanalyzed every negative issue that the day had presented her. Ms. Kurdila tried to contain her depression and associated episodes because, as an attorney, she was supposed to be solving the problems of others. “Because we are methodical and analytical, we think we can will ourselves out of a problem,” said Ms. Kurdila, chief assistant director of law with the City of Cleveland. “But you can’t apply logic and analysis when there’s a chemical imbalance in the brain.” Through proper medication and therapy, Ms. Kurdila confronted and is treating her depression. She said she is less stressed, is able to concentrate better and is able to rechannel her negative thinking into positive thoughts. Mental health experts say individuals like Ms. Kurdila, who work in high-demand, high-stress occupations such as the legal and health care industries, are more susceptible to mental health problems. “When you spend your life planning for the worst to protect your clients, you end up approaching life in a more pessimistic way. When you spend your life being a pessimistic perfectionist, it wears on your mental health,” said Michael Brittain, immediate past president of the Cleveland Metropolitan Bar Association. See FIELDS Page 14

RECESSION AND DEPRESSION The recession has magnified mental stress among employees in just about any industry, as job insecurities become intertwined with personal stresses such as finances and family problems. “There are so many forces coming at an employee,” said Janet Schiavoni, manager of account services at Ease@Work, a Cleveland-based nonprofit employee assistance program. “In better times, people tend to work better together, but with the threat of

layoffs, people tend to go into selfpreservation mode.” The nonprofit, which looks at management referrals as a barometer of employees’ mental health, said that while the number of management referrals and consultations remained about the same between 2008 and 2009 — from 472 to 468 — the number of hours counselors dedicated to each case rose from the average of three or four to between six and eight.

In management referrals, the organization refers an employee who is having job performance issues to Ease@Work, which helps employees work through their issues before they return to work. “People not only have problems at home they are dealing with, but job stresses, too. The issues are so much more complex,” Ms. Schiavoni said. “And in this economy, they can’t just switch jobs. They’re stuck.” — Kathy Ames Carr


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HEALTH CARE: MENTAL HEALTH

Fields: Lawyers, health care workers at risk continued from PAGE 13

According to the American Bar Association, attorneys have the highest rates of depression and suicide of any profession. Statistics suggest the rate of suicide attempts among attorneys is increasing as the effects of the recession widen. About 19% of lawyers suffer from depression at any given time, compared with 6.7% of the population as a whole, according to the American Psychiatric Foundation. Just last June, when Mr. Brittain was president of the bar association, he was approached by a local judge who said she was troubled by the high number of lawyers with mental health issues. In response, Mr. Brittain established the Lawyers Mental Health Task Force in Cleveland, which is

composed of area attorneys, mental health experts, law school professors and students in an effort to raise awareness about mental health issues in the field. “I met with partners of local law firms, and they were very receptive,” said Mr. Brittain, who also is a partner at Calfee, Halter & Griswold LLP. “We didn’t have to recruit people. They came to us.” Mr. Brittain said he hopes the task force, which has about 25 members, will bring to the forefront mental health issues that affect legal professionals, and he hopes other bar associations throughout the nation establish similar models. Still, the legal field isn’t the only occupation with higher rates of depression, suicide and other mental health problems. Experts say

health care workers also suffer more from mental health issues for a variety of reasons that stem from their responsibilities in caring for the welfare of others. Dr. Scott Bea, a clinical psychologist at the Cleveland Clinic, said health care workers, along with attorneys, typically are high achievers who virtually are on call around the clock; therefore, there’s no balance between their work and their life. “There are pressures to bill, and there’s a lot of competition in these fields,” he said. “And there’s a certain level of stoicism with these fields. We’re awarded for looking unflappable.” Physicians constantly are worrying about patients, along with the complexities of the health care system, such as billing and dealing with in-

Occupational hazards According to the Substance Abuse and Mental Health Services Administration’s 2007 National Survey on Drug Use and Health, the highest percentage — 10.8% — of occurrences of depressive episodes between 2004 and 2006 among fulltime workers was reported in personal care and service occupations. It was followed by food preparation

and serving-related occupations (10.3%); community and social services (9.6%); and health care and technical jobs (9.6%). According to the report, 6.4% of workers in the legal profession suffered major depressive episodes. “I believe the demands of the job, not the individual, affect the individual,” said William Denihan, CEO of the Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County. “After 9/11, a lot of safety workers had severe depression.” He said anguish is spreading to other service-related professions, such as the mortgage industry, which has been crippled by declining home sales and foreclosures. “You not only have people who have gone through bankruptcies and lost their homes, but the individuals who make a living selling those homes are affected, too,” Mr. Denihan said. ■

Help: Stigma sometimes a barrier

My Nance Executive MBA enhanced my medical career.

continued from PAGE 13

Jyothi Gudla, M.D. Executive MBA ‘08

www.csuohio.edu/business

surance companies or governmentsponsored health care plans. “It can lead to stress for the physicians, too, when they’re caring for patients uncovered by Medicare or Medicaid,” Dr. Bea said. He also said individuals who personally have been affected by mental health issues sometimes gravitate toward the profession. “Sometimes substance abuse counselors started out as substance abusers themselves,” Dr. Bea said.

Contact: Dr. Elad Granot (216) 687.6925 mba@csuohio.edu

how helping a mentally ill person cope with their disease can affect that person’s entire life. He has worked with the Magnolia Clubhouse in Cleveland for the past 10 years to provide transitional work to people who are getting their lives back on track after facing their mental illness. Magnolia helps adults with mental illness begin to take on everyday tasks such as cooking, cleaning and going to work. The nonprofit also teaches its members how to work before they start a new job. “People have the opportunity in a very safe environment to try different things and then go back to school or work,” said Paula Feher, a staff member at Magnolia Clubhouse. Zagara’s is one of many employers in Northeast Ohio that provide transitional employment to people with mental illnesses who receive help at Magnolia. Mr. Zagara said he has employed about two dozen people

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from Magnolia over the years and the program has worked well. The employees from Magnolia often take on jobs such as bagging groceries, cleaning or stocking shelves, he said. They come to work on time, enjoy their jobs and are never a problem — all while helping Zagara’s fill unpopular positions, he said. Unfortunately, there is a stigma attached to mentally ill people, but Ms. Feher said employers often stop worrying whether a person with a mental illness will be dangerous or lose control after they work with them for a period of time. “If we can get people working, that’s our biggest stigma buster,” she said. “It tends to be more acceptable to (employers) as time goes on.” Mr. Zagara said employers have to be flexible in creating an environment that works for a person with mental illness. He said many of the employees from Magnolia are on some type of medication, which can make them lethargic. Some mentally ill employees begin to break down if they work too many hours, so he creates a schedule that suits them. As a result, he doesn’t have any problems with absenteeism, lost productivity or increased health care costs, he said.

Making it work But there are concessions the mentally ill employee must make to ensure work goes smoothly, said Blair Cochran, a member at Magnolia who suffers from schizophrenia. For years, Mr. Cochran said he tried to hide his illness from his employer, but that only caused more stress. “The employer has to know that the medication might trigger certain types of behavior,” he said. “And the employee needs to not be afraid that it’s going to be held against them.” Mr. Cochran was employed in a housekeeping job when he joined Magnolia a year ago but he has since been laid off. He soon will start a transitional job at University Hospitals as a housekeeper, with the possibility of being hired on full time. Though it took a while to muster up the courage to contact Magnolia, he said the help he has received has been tremendous. “Just knowing there is somebody here who has the same difficulties I have, (is helpful),” Mr. Cochran said. “It’s a support group here.” ■


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CRAIN’S CLEVELAND BUSINESS 15

WWW.CRAINSCLEVELAND.COM

HEALTH CARE: MENTAL HEALTH

Employers need to be mindful of privacy By ARIELLE KASS akass@crain.com

I

f a public school student begins showing signs of depression, acting out or otherwise exhibiting signs of trouble, there is no shortage of people who will take note — and are required to act. But in the working world, there’s no teacher calling a principal to get in touch with parents at home. If an employer sees signs of mental illness in a worker, it’s best not to say anything at all, labor attorneys say, unless the perceived issue is interfering with a worker’s ability to do his or her job. Even then, that’s all the conversation can entail. “It’s not appropriate to say, ‘Are you depressed?’” said Frank Hickman, president of disability and elder law firm Hickman & Lowder Co. in Cleveland. “The focus is supposed to be on functions, not a diagnosis.” While Mr. Hickman said there is the expectation that in a school environment a teacher might have the insight and capacity to intervene, that is not the case with employers, who are supposed to act like bosses, not therapists. Nancy Barnes, a partner in Thompson Hine’s labor and employment group, said the issue of mental health in the workplace comes up in nearly every office. A 2006 World Health Organization report on the workplace and suicide prevention estimated that more than 25% of Americans experience a mental disorder during a 12-month period, the highest percentage in a study from 14 countries. Ms. Barnes said the numbers reinforce the issue’s significance. But she said there still is a great deal of stigma attached to mental illness. While mental health issues are covered under the Americans with Disabilities Act, she said co-workers and employers sometimes are less accepting of mental diseases. “Physical disabilities, they can see,” she said. “If they’re functioning in the workplace with an issue, it may go under the radar.”

respect to how they deal with perceived mental illness. She said it is not appropriate to ask about the existence or extent of a mental illness, but an employer can focus on reasonable accommodations that would make an employee better able to work. Some examples might be a move to a quieter area or a schedule that allows time off in the middle of the day to see a therapist or specialist. But Ms. Kuhlman cautioned that no one other than the employee and a direct supervisor or human resources representative should

have knowledge of the employee’s accommodations, unless the employee shares those circumstances more broadly.

Don’t turn a blind eye Stephanie Seeley, an attorney in Reminger Co.’s labor and employment group, said even if an employer should not ask about mental health issues, he or she should still be aware of employees’ tendencies. If a worker is prone to outbursts and there is a reasonable expectation that the employee may harm someone, the em-

ployer may be liable if that later turns out to be the case. She also said an employer cannot read a worker’s mind, and may not have a burden to notice signs of illness. Ms. Hastings said, though, that an employer is at risk of a lawsuit if a worker’s disruptive behavior is consistent and goes unchallenged, then leads to a bigger issue, like violence in the workplace. Even though employees are protected by disability laws, employers, too, have options. If a worker with mental health issues

is not taking prescribed medication and his or her performance is lacking, the worker still may be subject to termination, Ms. Barnes said. The employee still must be able to perform the essential functions of a job, despite any illness. A recent law, the Federal Mental Health Parity and Addiction Equity Act, which took effect in late 2009, has taken steps to ensure health plans treat mental and physical illnesses identically. While Ohio employers are not required to offer health coverage — or mental health coverage — at all, if they do, the deductible, co-pay, out-of-pocket expenses and other rules must be the same for both types of illness, Ms. Barnes said. ■

QUALIT Y you can believe in

Sensitive territory Even if an employer asks an employee about a potential mental health concern because of an interest in helping the worker, it could create unseen legal issues, Ms. Barnes said. One of those issues, said Sue Hastings, a partner and the firm-wide practice group leader in labor and employment at Squire, Sanders & Dempsey, is the possibility that an employee who does not have a mental illness could be covered by the ADA because an employer perceives the worker as being disabled. Ms. Hastings said if an employer treats a worker in a discriminatory way because of a perceived disability — even if the employee doesn’t have the disability in question — the worker still can claim an ADA violation. Gina Kuhlman, a partner in the employment services group at Roetzel & Andress, said in order to avoid some potential land mines, employers should make sure everyone who works for them knows about the company’s employee assistance programs and how to access them confidentially. The best employers always will be proactive, she said, and careful with

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16 CRAIN’S CLEVELAND BUSINESS

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FEBRUARY 22-28, 2010

HEALTH CARE: MENTAL HEALTH

‘Resilience’ programs can ease workplace stress

T

he global economic downturn is challenging virtually every employer and employee. The drive to be cost competitive, first to market and customer-centric in a 24/7 environment is testing the limits of all of us.

Organizations are striving to reach new levels of performance — and, along the way, dealing with more employer and employee stress. Excessive work hours, lack of work-life balance and fears about job loss are the foremost sources of

stress affecting people today, according to a new study by Towers Watson for the National Business Group on Health. However, the study found, only 24% of companies are taking actions to address excessive workloads, 40% are acting on

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ADVISER work-life balance and 42% are addressing fears about job loss. Combine the workplace challenges with the other realities of aging parents, children, rising health care and day care costs, unemployed spouses and credit cards and stress levels can become unmanageable. Stress can have a significant and lasting impact on a person’s physical and mental health, work performance and relationships. For employers, stress increases job turnover, accidents and health care costs. UnitedHealthcare has an online Stress Toolkit that addresses four primary categories of self-help ideas for stress reduction: ■ Biological reactions, which can include relaxation, meditation and diet, exercise and sleep habits. ■ Environmental conditions, which consist of better time management, conflict management and delegating responsibilities (at work and at home). ■ Individual actions, which include modifying personal behavior, assertiveness training, accepting criticism without overreacting and avoiding substance abuse. ■ Workplace changes, which include having a well-defined job, being clear about goals and priorities, being involved in worthwhile work and having adequate staffing. The goal is to create a sense of “resilience” in individuals and the workplace. According to the Wellness Council of America, resilience is generally defined as strength in

the midst of change and stress, and the power to spring back and recover readily from adversity. Resilience can be maximized by a wide variety of activities, including employee assistance programs, positive and open communications,“creative fun,” self-care, sleep choices, social support, attitude management, life-goal planning and dietary supplements. Support from friends and colleagues is important, and conversely, toxic places and people should be avoided. While a modest amount of stress is normal and even productive, it usually is cyclical and offset by periods of relative calm and security. However, if the stress rarely subsides, a person’s “Flight or Fight” defense mechanism — in which heart rate and blood pressure soar to increase the flow of blood to the brain to improve decision-making (and take it away from other vital organs) — never gets a break. Ironically, some of the people likely to be hardest hit by stress are those who survive a major restructuring or downsizing. Afflicted with “Survivor Syndrome,” these people face undue pressure due to the guilt of still having a job but also the resentment of needing to do more with less time and resources. “Survivor Syndrome” can have a latent effect and its impact may not be felt for six months or more after the original event. One notable symptom to look for is “presenteeism,” which the Towers Watson study defines as “when an employee is physically at work but not fully productive” due to stress and physical or mental health problems. In the context of business challenges, stress is serious, growing and costly. Fortunately, even in difficult times, it can be managed and prevented through attention to the risk factors, self-help ideas and a commitment to resilience. ■ Ms. Horvath is a registered nurse and managing director, health and wellness strategies, for UnitedHealthcare’s central and west regions.

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

WWW.CRAINSCLEVELAND.COM

17

INTERNET SERVICE PROVIDERS LISTED ALPHABETICALLY Name Address Phone/Web site

Year founded

# of local employees 01/01/2010

# of local subscribers 01/01/2010

% of subscribers that are businesses

Advanced Computer Connections 166 Milan Ave., Norwalk 44857 (419) 668-4080/www.acc-corp.net

1991

34

400

60%

Broadband high-speed Internet

Ald.Net 168 Lake Terrace Road, Munroe Falls 44262 (330) 745-3241/www.ald.net

1987

2

NA

95%

Area Networks Inc. 1228 Euclid Ave., Suite 1105, Cleveland 44115 (216) 781-1660/www.areanetworks.com

1996

10

10

Armstrong 1141 Lafayette Road, Medina 44256 (877) 277-5711/www.armstrongonewire.com

1963

50

BlueBridge Networks 1255 Euclid Ave., Cleveland 44115 (216) 621-2583/www.bluebridgenetworks.com

2004

Bonzai Pipeline Inc. 50 Pearl Road, Suite 307, Brunswick 44212 (216) 324-9600/www.bonzaipipeline.net

Types of Internet connections

Geographic area served tollfree Clyde, Fremont, Huron, Norwalk, Sandusky, Tiffin

24-hour tech Top executive support Title Yes

Denao Ruttino CEO

T1, DSL, dial-up, low cost web sites, Ohio low cost web hosting

Yes

Richard Depew CFO

10%

Managed service provider specializing in virtualization

Cleveland, Northeast Ohio

Yes

Marc Castelluccio CTO

20,000

20%

High-speed broadband

Boardman, Medina, Orrville, Ashland and outlying small cities

Yes

Karen Troxell general manager, Medina

NA

NA

100%

Geauga, Lake and T1, DS3, OCX, metro-fiber, ethernet Cuyahoga, Summit counties

Yes

Jeff Levine president, CEO

2002

5

75

100%

Patented wireless, T-type, fiber

Cuyahoga, Medina, Summit counties

Yes

H. Gregory Badger president

CanNet Internet Services Inc. P.O. Box 36696, Canton 44735 (330) 484-2260/www.cannet.com

1995

19

NA

75%

Wireless, T1, T3/DS3, OC-level connections, dedicated fiber/metro ethernet, dial-up

Stark County

No

Bruce M. Himebaugh president

CenturyLink of Ohio (1) 665 Lexington Ave., Mansfield 44907 (440) 244-8400/www.centurylink.com

2009

1,077

106,907

12%

Dedicated Internet via metro ethernet, T1, DSL, dial-up, pure broadband

Lorain County

Yes

Jen Graham area operations manager

Cleveland Net 30432 Euclid Ave., Wickliffe 44092 (440) 585-1810/www.clevelandnet.com

1996

7

NA

100%

Wireless, T1, dedicated high-speed

Cleveland, Mentor, Willoughby, Painesville, Burton, Chardon

Yes

Bob Hostutler president

Config.com Internet Services 124 East Spruce Ave., Ravenna 44266 (330) 297-9595/www.config.com

1994

1

800

10%

Dial-up, DSL, dedicated

North America

No

Joe Rinehart president

CRU Solutions 7261 Engle Road, Suite 305, Cleveland 44130 (440) 891-0330/www.crusolutions.com

1982

8

NA

100%

Dedicated T1, Suite Share T1, metro ethernet, VoIP

Nationwide, primarily Northeast Ohio

No

Jim Kerr president

Eriecoast.com Inc. 230 Second St., Elyria 44035 (440) 323-4844/www.eriecoast.com

1998

NA

750

20%

Dial-up, DSL, web hosting

United States (dial-up), Lorain County (high speed)

No

Rob Servis president

Expedient Communications 15248 NEO Parkway, Cleveland 44128 (216) 373-8500/www.expedient.com

2001

NA

NA

96%

Data center and disaster recovery, ethernet, T1, DS3, OC-3

United States

Yes

Bryan Smith vice president, sales and marketing

Fidelity Voice and Data 23250 Chagrin Blvd., Suite 250, Beachwood 44122 (216) 595-9050/www.fidelityvoice.com

2000

23

2,000

100%

T1, DS3, colocation, MPLS, metro ethernet, private line, voice trunks, SIP termination

United States

Yes

Robert Marks president

First Communications 3340 W. Market St., Akron 44333 (800) 860-1261/www.firstcomm.com

1998

150

NA

17%

T-1, wireless

Every state except Alaska

Yes

Ray Hexamer CEO

Imagine Net Internet Services & IT Consulting P.O. Box 832, Brunswick 44212 (216) 215-1930/www.imaginenet.net

2002

7

NA

80%

Ethernet, fiber, DS3, T1, DSL, dialup

Nationwide

Yes

Rusty Rivituso CEO

Mango Bay Internet 1277 E. Schaaf Road, Suite 4, Brooklyn Heights 44131 (216) 335-9255/www.mangobay.net

1997

8

NA

80%

Dial-up, DSL, high-speed wireless, T1, T3, bonded ethernet

United States, Canada, Virgin Islands

Yes

Alan P. Jacubenta president

Marinar Technology Co. LLC 270 E. Main St., Suite 100, Painesville 44077 (440) 354-1458/www.marinar.com

1996

10

100

100%

T1, DSL, colocation, hosting, managed anti-spam

NA

No

Francis Martin president

Mechcom Dot Net 1200 E. Main St., Ashland 44805 (419) 281-5885/www.mechcom.net

2000

4

250

5%

Dial-up, wireless broadband, DSL

NA

Yes

Watson Penrod president

N2Net 815 Superior Ave., Suite 425, Cleveland 44114 (216) 619-2000/www.n2net.net

1995

10

NA

85%

SIP trunking, hosted PBX, T1, T3, VoIP, virtual infrastructure, colocation, dedicated servers

United States

No

Edward J. Rozak II president

Netlink Services Inc. P.O. Box 447, Twinsburg 44087 (440) 856-2000/www.netlink.net

1995

15

10,000

65%

DSL, T1, T3, dial-up, colocation

United States

No

Edward R. Kuchar Jr. president

Ohio.net / Bright.net Northeast 37 E. Marion St., Doylestown 44230 (888) 881-0805/www.ohio.net

2003

42

5,000

40%

DS3, gigabit, dial-up, DSL, T1, VOIP

United States

No

John Clarke assistant vice president

Ohioramp.com 13500 Pearl Road, Suite 139-300, Strongsville 44136 (800) 795-3282/www.ohioramp.com

1994

6

400

75%

In-building high-speed ethernet, T1, fixed wireless, ISDN, dial-up

Northeast Ohio (high-speed), United States (dial-up)

Yes

Terry Joseph, CEO Shawn Skeabeck, chief technology officer

Rampant Inc. 4700 Rockside Road, Suite 400, Independence 44131 (216) 524-5577/www.rampant.com

1995

10

2,600

100%

Direct, T3, T1

Northeast Ohio

Yes

Robert G. Scott president

Simcon Technologies P.O. Box 1208, Twinsburg 44089 (440) 856-2000/www.simcon.net

1999

NA

NA

75%

DSL, T1, DS3, colocation, dial-up

Nationwide

No

Edward R. Kuchar Jr. president

Suite 224 Internet 224 State St., Conneaut 44030 (440) 593-7113/www.suite224.net

1996

47

3,200

40%

Metro ethernet, cable modem, ADSL, dial-up

Ashtabula County, Lake County, CenturyLink areas

No

Ken Johnson general manager

Thinsolutions LLC 1388 Riverside Drive, Lakewood 44107 (216) 685-3000/www.thinsolutions.com

1997

30

NA

100%

T1

Northeast Ohio

Yes

Steve Mesenburg president

Time Warner Cable Business Class 530 S. Main St., Suite 1751, Akron 44311 (888) 632-0196/http://neohio.twcbc.com

1998

2,400

1,000,000

2%

Ethernet, cable modem

Northeast Ohio

Yes

Don Kosec, vp, enterprise sales; Kevin McCue, vp, mid-market sales

Vision Net Ltd. 3241 Superior Ave., Cleveland 44114 (216) 619-8638/www.visn.net

1998

6

NA

90%

T1, dial-up, web hosting, email

Northeast Ohio

Yes

Aaron Woldman CEO

Windstream 50 Executive Parkway, Hudson 44236 (330) 650-7428/www.windstream.com

1943

784

230,000

35%

Dedicated Internet, T1, DSX, OCX, MPLS, broadband, high-speed Internet, ISDN

Ashtabula, Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, Summit and Trumbull counties

Yes

Susan L. Schraibman, div. vp, operations, Ohio; Kenneth Elliott, area vp, business

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. Purchase business lists at www.crainsleveland.com. (1) Formerly CenturyTel of Ohio Inc. The employee number includes all employees in Ohio.

RESEARCHED BY Deborah W. Hillyer


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Fee: District touts regional approach of Columbia Township in Lorain County. In a phone interview, Mr. Berns said because some communities manage their own sewer systems â&#x20AC;&#x201D; among them Bay Village, Bedford and Westlake â&#x20AC;&#x201D; and are not part of the sewer district, the new user fee would not be applied equitably among property owners that create the same drainage problems. For example, Mr. Berns said, Legacy Village shopping center in Lyndhurst would be paying the new fee but Crocker Park in Westlake would not, even though both create similar runoff problems. A shopping center such as the 67-acre Legacy Village

continued from PAGE 1

by voters rather than a sewer district user fee. He also said local counties would be the proper managers of storm water mitigation, not a district led by an unelected board. In addition, Mr. Bernsâ&#x20AC;&#x2122; memorandum questions the legal authority of the sewer district, which was created in 1972 to collect and treat waste water at its water treatment plants â&#x20AC;&#x201D; not, he argues, to manage water flowing into streams and lakes. The sewer districtâ&#x20AC;&#x2122;s footprint includes most, but not all, of Cuyahoga County, a handful of communities in Summit County and a corner

Contact: Phone: Fax: E-mail:

FEBRUARY 22-28, 2010

could pay a user fee of nearly $30,000 a year, according to a formula Mr. Berns created in his memorandum. Though Mr. Berns said the January action by the sewer district took many of his clients by surprise, the sewer district has been preparing its storm water mitigation plan and discussing it openly for several years. â&#x20AC;&#x153;Storm water doesnâ&#x20AC;&#x2122;t respect jurisdictional boundaries,â&#x20AC;? sewer district chairman Darnell Brown told Crainâ&#x20AC;&#x2122;s in August 2007. â&#x20AC;&#x153;Somebody has to do this.â&#x20AC;? Sewer district spokeswoman Jennifer Elting said the fee the district wants to impose is based on the size of the property and the amount of impervious surface â&#x20AC;&#x201D; roofs, parking lots and access roads

and driveways â&#x20AC;&#x201D; that keeps the ground from absorbing water and, instead, sends it to sewers and streams. Ms. Elting said property owners who include storm water mitigation projects, such as retention ponds, on their properties are eligible for credits of up to 75% of the assessed fee. Until now, communities individually have tackled storm water problems, which can lead to stream erosion and basement flooding. With a regional approach, the sewer district argues, cities and villages wonâ&#x20AC;&#x2122;t need to spend tax dollars to cleaning storm drains and repair eroding stream banks with their general funds. Instead, the sewer district would charge property owners â&#x20AC;&#x201D; including nonprofits and govern-

REAL ESTATE

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

LEGAL NOTICE

Industrial and Office Spaces to Fit Any Need! 216.520.1200 â&#x20AC;˘ www.crescorealestate.com

CRESCO real estate

Notice is hereby given that sealed proposals will be received in the Board of County Commissioners Office of Procurement & Diversity, Room 100, County Administration Building Annex, 112 Hamilton Court, Cleveland, Ohio 44114 until 11:00 A.M., (Local Time) on:

Available Office Space SUBLEASE OPPORTUNITY - great location - attached parking - full floor available - 19,322 sf - private and open office area - $13.50 sf as-is - term thru 8/31/2014 - Patrick Reardon, SIOR 30 BED RESIDENTIAL REHAB FACILITY - 7,000 sf - 16801 Euclid - $120,000 Tom West, SIOR BEACHWOOD SUBLEASE - recently renovated offices - below market lease rate - 4,595 sf - large open floor plan - Chagrin Blvd building - John Glasstetter, SIOR OFFICE/WELLNESS SPACE AVAILABLE - 10 mins from downtown - minutes from I-90 / I-271 - flexible terms - attractive rates - rpietro@crescorealestate.com - Rico Pietro, SIOR

March 31, 2010 for: The sale of County-owned property no longer needed for public use: Permanent Parcel Nos. 110-04-005 to 007, 60 to 63, 80 to 82 and 117 to 124 located at 12212 St. Clair Avenue, Cleveland, Ohio, as per County Requisition No. CT-09-16145. Any questions concerning the property may be directed to the Real Estate Division, at (216) 698-2517. The official closing time shall be determined by the wall clock located in the Office of Procurement & Diversity, Room 100, County Administration Building Annex, 112 Hamilton Court, Cleveland, Ohio 44114. Late bids will be returned unopened.

Available Industrial Space EASTLAKE - Route 2 visible - excellent manufacturing facility - 113,285 sf with 13,000 sf of office/training rooms on 8.86 acres - cranes - heavy power - buss duct - air lines - 22â&#x20AC;&#x2122;-26â&#x20AC;&#x2122; clear - highway visible - expandable - Eliot Kijewski, Joe Barna, SIOR of Simon Caplan, SIOR PRICE REDUCED - FOR SALE OR LEASE - 65,000 sf manufacturing facility - 7 cranes from 5-20 tons - newly renovated offices - airlines throughout - heavy power - 2 docks - 4 drive-ins - Bob Garber, SIOR or Ryan Burrows

Specification and proposal blanks may be obtained at the Office of Procurement & Diversity. (Same Address) Interested bidders may visit the site (12212 St. Clair Avenue, Cleveland, Ohio) for a walk-thru on March 10, 2010 at 11:00 A.M. Each bid must be accompanied by a â&#x20AC;&#x153;Certified Checkâ&#x20AC;?, â&#x20AC;&#x153;Cashierâ&#x20AC;&#x2122;s Checkâ&#x20AC;? or â&#x20AC;&#x153;Money orderâ&#x20AC;? drawn on a solvent bank or Savings and Loan Association, payable to the Treasurer of Cuyahoga County, Ohio, in a sum equal to 5% of the amount bid, conditioned that if such bid is accepted, the bidder shall proceed with the purchase. The balance of the amount bid is due from the successful bidder within sixty (60) days after award by the Board of County Commissioners.

receive reduced rates on your advertising. Call Genny Donley at (216) 771-5172 for more details.

CLASSIFIED

The Board of County Commissioners reserves the right to accept or reject any or all bids. By order of the Board of County Commissioners of Cuyahoga County. Jimmy Dimora Timothy F. Hagan Peter Lawson Jones

BUSINESS SERVICES

Lenora Lockett, Director, Office of Procurement & Diversity



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Publish in Crainâ&#x20AC;&#x2122;s Cleveland Business February 15, 2010 and February 22, 2010





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OFFICE SPACE







3 Court-Ordered

1080 Interstate Pkwy., Green 6000 sq.ft. Commercial Building

3.3 Acres â&#x20AC;˘ Last Use: Restaurant/Bar March 31 â&#x20AC;˘ 11:00 AM On-Site

308 S. Chapel St., Louisville 8,400 sq.ft. 4-Unit Commercial Building Plus Full Basement, Parking Lot

FOR LEASE

Cleveland/Shaker Hts. Historic AmTrust building, N. Moreland & Larchmere. 1,000 s.f. to 8,000 s.f. from trendy & modern to well appointed & distinguished. Free parking â&#x20AC;˘ Kitchen Facilities â&#x20AC;˘ Large Training Room/Classroom Space â&#x20AC;˘ Conference Room. For additional information contact

Fairmount Properties 216-514-8700 For daily on-line updates, sign up @ CrainsCleveland.com/Daily

March 31 â&#x20AC;˘ 2:00 PM On-Site

3618 Apache St. NW, Uniontown 50,000 sq.ft. Multi-Unit Building 3.4 Acres

See Web Site For Details Bambeck Auctioneers Inc. Call Dave 330-260-0192 www.bambeck.com

Crainâ&#x20AC;&#x2122;s Executive Recruiter



This notice may also be viewed at the following Cuyahoga County Internet Web Site: www.opd.cuyahogacounty.us by clicking on the show events tab and the bid due date month. A list of open bids will appear on the next screen.

March 24 â&#x20AC;˘ 11:00 AM On-Site

3 BUILDINGS - SALE/LEASE - 13,000, 32,000 & 59,800 sf - 1 story - docks - up to 27â&#x20AC;&#x2122; clear - manufacturing/warehouse - Armand Aghajanian OWNER-INVESTOR OPPORTUNITY - 40,000 sf - industrial building partially leased (16,600 sf) for five (5) years with 18â&#x20AC;&#x2122; clear - 2 drive-ins and 2 docks - George Pofok, SIOR or Joe Barna, SIOR PARMA - FOR SALE - 22,753 sf facility on 2.00 acres on Brookpark Road - 18â&#x20AC;&#x2122; clear Fred Christie, SIOR WESTERN CLEVELAND - 13,359 sf assembly/manufacturing facility available for sale - 5 year old roof - new doors and asphalt - new on the market - priced to sell now - Kevin Kelly CHAGRIN FALLS - 13,200 sf light industrial - office - docks - drive-in - sale or lease - minutes to the Falls off E. Washington - Matt Beesley, SIOR or Tom West, SIOR AIRPORT AREA - units available from 2,464 sf to 11,737 sf - competitive rates docks/drive-ins - 16â&#x20AC;&#x2122; clear - Pamela Bertovich 5,400 SF OFFICE/WAREHOUSE CONDO IN WESTLAKE - measure 60â&#x20AC;&#x2122; x 90â&#x20AC;&#x2122; divisible to units of 1,800 sf and 3,600 sf - George Pofok, SIOR or Joe Barna, SIOR AVON, OHIO LAND - $32,500/acres - 52.6 acres of choice commercial/light industrial land with frontage on Route 83 - Ken Anderson

REALTORS: Now is a great time to promote your Luxury Properties to high-end prospects and

The above described parcel and interest to the conveyed will be by QuitClaim Deed.

Real Estate Auctions

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

INDUSTRIAL SPACE

NOTICE TO BIDDERS

AUCTION

ments that donâ&#x20AC;&#x2122;t pay taxes â&#x20AC;&#x201D; a fee based on how much they contribute to runoff problem. The district had hoped to begin charging a user fee this July that would give it about $38 million annually to begin to tackle what it estimates are more than $200 million of storm water problems. But as it began to hear mayors and property owners questioning the districtâ&#x20AC;&#x2122;s right to levy the fee, it took pre-emptive action and asked a Cuyahoga Common Pleas Court judge to rule on the districtâ&#x20AC;&#x2122;s authority to manage storm water. The court has not yet acted on that motion for declaratory judgment, and the fee wonâ&#x20AC;&#x2122;t be imposed until the issue is resolved. â&#x2013; 

APARTMENTS 2,100 Sq. Ft. Penthouse Great View. 3 Bdrm/2 Bath In-suite Washer/Dryer. Underground parking and much more! Call today and select your own carpet & tile!

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FLYNN ENVIRONMENTAL For Assessments

(800) 690-9409 www.flynnenvironmental.com

Landerhaven Brides Welcome! 440.449.0700

ExecutiveCaterers.com

BUSINESS OPPORTUNITY

Selling a Business or Need Capital?

CHAIR OF THE DIVISION OF BUSINESS ADMINISTRATION Baldwin-Wallace College seeks an experienced leader who can work effectively on and off campus to plan and execute strategic initiatives that advance the mission of the Business Division and the College. An MBA or a Ph.D. in a Business Administration/ Management field are preferred, and a rich track record of working with corporations and their management leaders is highly desirable. Salary and professorial rank are commensurate with qualifications. Learn more about position, qualifications and application requirements at www.bw.edu/resources/hr/jobs. In a continuing effort to enrich its academic environment and provide equal educational and employment opportunities, the College and the Division of Business Administration actively encourages applications from individuals who desire an environment that celebrates diversity. Applicants should submit a letter of application, curriculum vita, statement of leadership philosophy, and the names and contact information of three current references to: Dr. Mary Lou Higgerson, Vice President for Academic Affairs and Dean of the College, Baldwin-Wallace College, 275 Eastland Road, Berea, OH 44017. Electronic applications are encouraged and may be submitted to blennox@bw.edu.

GDIC Group, LLC is a small business investment company recently formed to invest in distressed companies under $20 million in revenues.

B-W is an EEO/AA employer and educator committed to diversity in the classroom and workplace.

Contact: Steve White, President

To place your Executive Recruiter ad Call Genny Donley at 216-771-5172

Email: info@GDICGroup.com

Phone: 440-663-4510


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2/19/2010

1:58 PM

Page 1

FEBRUARY 22-28, 2010

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

19

THEINSIDER

THEWEEK

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

FEBRUARY 15 - 21

The character is fictional, the law school is not

The big story: Park Corp., the Clevelandbased real estate and industrial concern that owns the I-X Center, bid $27.5 million for Chrysler Corp.’s Twinsburg plant, according to documents filed in U.S. Bankruptcy Court in New York. Twinsburg Industrial LLC, formed by Ricky L. Bertram Jr., a Park Corp. attorney, will become the stalking horse bidder for the property in a sale the court is scheduled to hold March 10. Court filings indicate Capstone Advisory Group, the court-appointed real estate broker for the plant, had received 31 inquiries about the structure.

■ Students at the Case Western Reserve University School of Law are all abuzz over a (fictional) famous alumna. Addy Fisher, played by actress Tina Majorino on the new ABC show “The Deep End,” is a first-year attorney at the prestigious (and also fictional) Los Angeles law firm Sterling Huddle Oppenheim & Craft. She graduated first in her class at CWRU and has “great legal instincts and a natural ‘flair’ for the law,” ABC according to a character description on the show’s web site. She is also a fantastic baker. Michael Scharf, a professor of law at CWRU and director of the international law center, said students at a moot court competition in Chicago earlier this month were talking about the show — and Addy’s character — the whole time. “Students are really excited to see Case being portrayed in that light,” Mr. Scharf said. “She stands up for herself.” Indeed, in a clip where Addy responds to an older female attorney at the firm who tells her that she expects her to do a task when asked, Addy says she’s sick of being batted “back and forth like a ping-pong ball.” “And maybe it’s because I’m small or I’m polite or because I’m still figuring out makeup,” she says, “but I did graduate first in my class from Case Western Reserve law school, and

Simon says: Simon Property Group of Indianapolis offered to pay $10 billion for General Growth Properties Inc. of Chicago in a deal that could lead to Beachwood Place Mall joining five other Northeast Ohio properties in Simon’s portfolio. Simon announced it has made a fully financed written offer for General Growth that would pay unsecured creditors and provide General Growth shareholders more than $9 per share. General Growth has been undergoing Chapter 11 reorganization under the U.S. Bankruptcy Code since April. A hub of activity: The U.S. Department of Transportation awarded a $20 million stimulus grant for a transit center on Erie Street in Kent that would help advance a big redevelopment initiative in the college town’s downtown. The Portage Area Regional Transportation Authority complex would include a bus transfer center, as many as 300 parking spaces, and as much as 22,000 square feet of commercial space. The transfer center would help accommodate the added traffic that is expected downtown with the construction of a proposed hotel and conference center in Kent by the Pizzuti development firm in Columbus.

MILESTONE

Covering more of the earth: SherwinWilliams Co. inked a definitive agreement to buy the Industrial Wood Coatings business of Arch Chemicals Inc. Sherwin-Williams did not say what it will pay for Arch Industrial Wood Coatings, which sells products under the Sayerlack brand name. Sayerlack is one of the largest manufacturers of industrial wood coatings in Europe.

The ultimate mark down: Get ready for some serious blue-light specials — Kmart is shutting five more Ohio stores. The retailer notified the state it will terminate 314 employees as part of the closings. Kmart said the closings involve its store on West 65th Street in Cleveland as well as stores in Eastlake, Dayton, Milford and Wadsworth. This does compute: Agilysys Inc. in Solon said its biggest shareholder now is allowed to get bigger. The provider of computer hardware and software said shareholders approved an Ohio Control Share Acquisition proposal that clears the way for hedge fund operator MAK Capital to boost its ownership to 20% or more of Agilysys’ common stock. However, its holdings can’t exceed one-third of the stock outstanding.

Tribe finds free is the ticket ■ Who says no one wants to go to Indians games? The tickets here are free, of course, but the team has received nearly 500 entries — 25 of which will receive free tickets to 12 of the team’s marquee games — for its 12-pack essay contest. Entrants were asked to explain their economic circumstances and what winning one of the prizes would mean to them. As part of the team’s ongoing “12-pack” theme, its internal group of judges — which were evaluating entries based on writing

More stimulus? No. Robust recovery? Also no

THE COMPANY: Nook Industries, Cleveland THE OCCASION: Its 40th anniversary Nook, a maker of integrated linear motion components, has been shaking things up for four decades. The company was formed by Joseph H. Nook Jr. in 1969. Its core product lines in the 1970s were the Power-AC Acme Screw Assemblies and the ActionJac Worm Gear Screw Jack. Since then, Nook has evolved into a turnkey manufacturer of a comprehensive line of more than 10,000 configurable products for uses in markets including aerospace, chemical, food/beverage, medical/diagnostics, military, paper, solar and transportation. Mr. Nook continues to be active in strategy and operations. His sons, Chris Nook and Joseph Nook III, have served as CEO and chief operating officer, respectively, since 1999. Ron Domeck has been president since 1987. For information, visit www.NookIndustries .com. The site features a downloadable 2D and 3D CAD library to reduce engineers’ development time. Send information about significant corporate anniversaries to managing editor Scott Suttell at ssuttell@crain.com.

quality, demonstration of economic need, and Indians knowledge and passion — will announce the winners on Friday, March 12. A certain Cleveland sports business reporter already has called dibs for the role of celebrity judge for 2011. — Joel Hammond

A Majestic idea to spur manufacturing knowhow ■ If a few more students learn high-tech manufacturing skills, that would be a good thing for Northeast Ohio, figures Jonathan Leebow, vice president of Majestic Steel in Cleveland. So, Mr. Leebow and the Cleveland Cavaliers are going to pay for them to do just that. Working in conjunction with Magnet, a local manufacturing advocacy group, Majestic Steel and the Cavs are offering six, $2,000 scholarships for students who take manufacturing courses at Cuyahoga, Lorain County or Lakeland community colleges, beginning in the 2010-2011 school year that starts this fall. Prospective high school graduates and those already enrolled in the college classes have until March 5 to apply for the scholarships. Interested parties should contact Holly Yanak with the Cavaliers at hyanak@cavs.com or at 216-420-2290. Mr. Leebow said he has wanted to offer the scholarships for some time and has been working with the Cavs for about a year to get the program going. “School is a privilege, but not everyone can afford to go,” Mr. Leebow said. “It’s just nice to be able to pay it forward.” — Dan Shingler

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

They’re in the tribe: Cleveland Indians general manager Mark Shapiro and assistant GM Chris Antonetti will be promoted at the end of the 2010 season. The baseball team said Mr. Shapiro will move into the role of president and Mr. Antonetti will replace Mr. Shapiro as the team’s GM. Paul Dolan, son of owner Larry Dolan who has served DAN MENDLIK/ as team president since 2004, CLEVELAND INDIANS will become chairman and CEO, a new position with the Indians.

I am a damn good lawyer.” Show creator David Hemingson told The Docket, the law school’s paper, that he made Addy a CWRU alumna “because one of the smartest people I know (went to CWRU), and it was actually a bit of a shout-out to that person,” the paper said in its Jan. 25 issue. Mr. Hemingson did not respond to a message seeking additional comment. Addy also is described on “The Deep End’s” web site as “a brilliant, eager-toplease Midwesterner” who wants to do good. “She seems to be the Midwest moral core of the show,” Mr. Scharf said. “We like that.” Mr. Scharf also said an assertion that all the characters — including Addy — are graduates of the top schools in the nation has started some debates online, saying that “law professors can be a little catty.” CWRU is ranked 55th by U.S. News & World Report. — Arielle Kass

■ Don’t look for Eaton Corp. CEO Sandy Cutler to get behind another government stimulus bill. In an interview with the Bloomberg news service, Mr. Cutler said the government doesn’t need another economic stimulus plan even as his company expects about $1 billion in related spending coming its way. “From a pure economic view, do you need another stimulus plan? Probably not,” Mr. Cutler told Bloomberg. “Every economy goes through three phases — there’s an early phase, a mid phase and a late phase— and that won’t be changed by a stimulus program. Part of what we are seeing now is the early-cycle businesses are recovering.” Mr. Cutler expects a muted recovery. “I think 2010 in many ways is a transitional year,” he told the news services. “And I think that’s the way one has to think about it in terms of an economic recovery, because many end-markets won’t return to their 2007-2008 time period until we get out into the 2011 and 2012 time period.”

In hyper-growth mode, Toyota loses its way ■ Case Western Reserve University economics professor Susan Helper was quoted in a Feb. 13 Washington Post piece about how the famous “Toyota Way” got compromised as the automaker struggled to keep up with astounding global growth. Toyota used to take 10 years to train firstclass engineers. Dr. Helper told The Post that Toyota engineers and senior managers

had time to absorb company values that gave them an intuitive feel for weighing quality demands against cost concerns. “So much of what made the company work well was that each manager was personally trained by a mentor who himself had long experience with the company,” she said. “When the fast expansion came, Toyota was very short of senior managers who were ready to become mentors. My sense is that decisions were made more on numbers, without understanding fully whether those numbers were measuring the right thing.” Dr. Helper told The Post that as Toyota’s new cars became less mechanical and more dependent on electronics and computers, “management’s intuitive feel for quality was further diluted, along with its expert understanding of how suppliers made parts.”

To Big Z, the 3 Rs are reading, ’riting and roundball ■ Here’s another reason to like (and mourn the trade of) former Cavalier Zydrunas Ilgauskas: He enjoys reading. The Wall Street Journal included Z in a piece on NBA players who prefer reading to video games as a locker room activity. Cavs officials told the newspaper that Mr. Ilgauskas is “obsessed with military history” and “often reads right up until tip-off.” Some of this is just habit. Growing up in Lithuania, Mr. Ilgauskas said, he had no video games, and his TV had only two channels. One of the league’s biggest readers is New Orleans Hornets center Emeka Okafor. (Also, like Z, from outside the U.S.) He has finished six books this season, including “The Road” by Cormac McCarthy, “Interpreter of Maladies” by Jhumpa Lahiri and Junot Diaz’s “The Brief Wondrous Life of Oscar Wao.”


20100222-NEWS--20-NAT-CCI-CL_--

2/19/2010

5:07 PM

Page 1

BMW 2010 328i xDrive

bmwusa.com 1-800-334-4BMW

Power. Performance. Prestige. And a Lease to make it all attainable.

The Ultimate Driving Machine®

We’ve discovered that the better a car breathes the more likely it is to take your breath away.

299*/month

$

for 36 months or

Purchase interest rate of 2.9% up to 60 months.

Just because a vehicle offers breathtaking performance doesn’t mean you have to sacrifice fuel efficiency. It’s the balance of rpm and mpg that inspired us to develop Valvetronic technology in our engines. Our Valvetronic system replaces the function of a traditional throttle butterfly with continuously variable valve-lift control, enabling the engine to breathe easily even at low rpms. The result? BMW has more models that get at least 28 mpg than any other luxury manufacturer. With every touch of the accelerator comes a seamless and instantaneous delivery of power as well as maximum fuel efficiency.

NOW THROUGH 3/1/2010

2007 Quattroporte Executive GT Maserati Factory Certified Warranty for 6 Years or 100,000 Miles

$1,299

LEASE * PER MONTH

36-Month Lease • 10,000 Miles Per Year $7,589.00 Due at Lease Signing

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

MASERATI OF CLEVELAND

BMW Cleveland • 6135 Kruse Dr. • Solon • 1-866-210-6710

*ON APPROVED CREDIT. Available only at participating authorized Maserati Dealers through March 1, 2010 to qualified lessees with approved credit through Maserati Financial Services. Delivery by January 30, 2010 required. Subject to availability, quantities are limited. Required dealer contribution could affect price. Dealer prices will vary and affect lessee cost. Actual lease price determined by your authorized Maserati Dealer. Payments will also vary based on length of lease and options selected. Payment shown based on a 36-month closed-end lease for a new 2007 model year Quattroporte 4.2 Executive GT Automatic with MSRP of $131,520.00 (shown in picture with optional wheels). Total cash due at signing is $7,589.00, including capitalized cost reduction of $4,796, first month’s payment of $1,299.00 and $995.00 acquisition fee. No security deposit required. Total amount of monthly payments is $46,764.00. Purchase option at lease end for $31,749.00 plus taxes. Lessee is responsible for insurance, maintenance, repairs, $.60 per mile over 10,000 miles per year, excess wear and a $495.00 termination fee. Title, taxes, registration and dealer fees are extra. See your participating local authorized Maserati Dealer for details. ©2009 Maserati North America. All rights reserved. Maserati and the Trident logo are registered trademarks of Maserati SpA. Maserati urges you to obey all posted speed limits.

* Monthly lease payments of $299 for 36 months. $5,574 due at signing includes first month’s payment, $4,250 down payment, $300 security deposit and $725 bank fee. Excludes tax, title, license, and registration fees and a documentary service charge. Lease financing subject to credit approval. Dealer contribution may affect terms. Mileage charges of $.15 per mile for miles driven in excess of 10,000 miles per year. Includes all factory incentives. Expires 3-1-10. See participating BMW centers for details and vehicle availability. ** Ultimate Service covers all factory recommended maintenance on all MY 2006 vehicles and newer vehicles, as determined by the Service Level Indicator, for 4 years or 50,000 miles, whichever comes first. Exclusions from coverage: gasoline, gasoline additives, windshield washer additives, tires, wheels, wheel alignment, tire balancing and rotation. All work must be performed by an authorized BMW center. See the Service and Warranty information booklet for more details and specific terms, conditions and limitations. ©2010 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

6137 KRUSE DR. • SOLON • 1-866-210-6707

www.BMWCleveland.com

The new 2010 Range Rover Sport HSE

11-17maseratiAAA.indd 1

1/14/09 2:21:56 PM

2 0 1 0 J A G UA R We upped the power and capability, making it that much more of a luxury to drive. A quicker acceleration mated with heightened responsiveness makes this Range Rover Sport a marvel of technology. The all-new TFT screen, which offers a more enhanced driver information interface, makes this ride one of the most exciting and dynamic vehicles on any road. So, don’t you think it’s about time for that upgrade? To see for yourself, visit Land Rover Solon.

LEASES STARTING AT $ 879* 36 MOS. MSRP $60,495

APR RATES: 1.9% to 36 months 2.9% to 48 months 3.9% to 60 months

LAND ROVER SOLON 6137 KRUSE DR.• SOLON • 1-866-210-6707 www.landroversolon.com * With approved credit. 36 month lease. Total due at signing $5,353. Includes first payment, $3,999 down, $475 acquisition fee plus tax, title and registration fees extra. Customer responsible for excess wear and tear. 10,000 miles per year. 30¢ per mile over. Other Range Rover Sport HSE’s available at similar savings. Expires 3/1/10.

The minute you drive it off the lot, it outperforms the competition. The Jaguar XF is a wise investment and not just because of the years of driving exhilaration you’ll enjoy. The XF has finished ahead of the Audi A6, Mercedes-Benz E-Class, BMW 5 Series and Lexus GS in the Automotive Lease Guide’s residual value comparison. Which goes to show, outstanding performance shouldn’t be limited to the road.

Lease $ Starting at

599

36 Mos.

FREE Winter tires included for XF 4.2 and the FX Premium. 2 years mounting, balance and storage included.

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

DESIGNED FOR THE EXTRAORDINARY

* With approved credit. 36 month lease. Total due at signing $5,393 includes 1st payment, $3,999 in Cap reduction, $795 acquisition fee and document fees. $0 security deposit. Tax, title and registration fees extra. Customer responsible for excess wear and tear. 10,000 miles per year. 30¢ per mile over. M.S.R.P. $52,300. Others available at similar savings. Picture for illustration purpose only. Expires 3/1/10.

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


Crain's Cleveland Business