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Lawmakers still leery of Kent plan to finance fix Some fear precedent of academic building fee By TIMOTHY MAGAW tmagaw@crain.com
Some of the lawmakers who must give Kent State University the final OK to borrow $210 million for a slew of campus upgrades aren’t sold yet on the school’s proposal to finance the construction plan with a new student fee at a time when the cost of higher education continues to escalate. Gaining approval from the State Controlling Board, an oversight body made up of six legislators and an appointee of the governor, is the last of many hurdles Kent State must overcome before proceeding with a $250 million renovation and construction plan on its main campus in Kent. All parties involved agree the renovations are needed as the university has more than $300 million in deferred maintenance. But coming to a consensus on how to pay for the plan is proving trickier than anticipated. Approving the Lefton measure, lawmakers said, could open the floodgates for other state universities to impose steep fee hikes for capital investments — something Kent State president Lester Lefton isn’t convinced would happen. Such fees typically are imposed for buildings such as stadiums or student unions, but not for academic buildings, as Kent State proposes. “Converting student fees on this scale to capital improvements is problematic,” said state Sen. Tom Sawyer, a Democrat on the controlling board who represents Kent State’s district. “To run a policy change of this magnitude through the controlling board is, by itself, a concern for a number on the board.” Kent State had planned to go to market with the bond sale this summer
AN EASIER WAY TO PAY Small businesses, nonprofits — even the Girl Scouts — find mobile credit card readers make their lives simpler By CHUCK SODER csoder@crain.com
D
on Larson loves taking credit card payments on his smart phone. Loves it. “It’s a frickin’ godsend. It really is,” he said. Mr. Larson is one of many area small business owners who recently have started taking credit card payments with smart phones and tablet computers such as the iPad. Nonprofits do it, too. For instance,
not only does Mr. Larson use Intuit Inc.’s GoPayment system when providing business consulting services to his clients, but the Gorilla Group, an entrepreneurship organization he helps run, uses a product called the Square to take payments from people who attend its monthly events. Neither system is much better than the other, said Mr. Larson, who is managing partner of consulting firm MCF Industries in Cleveland. However, for businesses and organizations that don’t move large See PAY Page 9
Team NEO broadens board, eyes consensus Expected role with JobsOhio fuels expanded representation By JAY MILLER jmiller@crain.com
Anticipating new responsibilities that will be thrust upon it by Gov. John Kasich’s administration, Team NEO is doubling the size of its board of trustees as it anticipates a need to build broad consensus for a regional economic development strategy it must present to JobsOhio, the governor’s nascent job-creation nonprofit. The state today, Aug. 29, is expected to announce formally that Team NEO, the business attraction group created by the region’s major chambers of commerce, will be the Northeast Ohio regional partner for JobsOhio. In that role it will be the agent for the state’s many business incentive programs, the place where mayors and INSIDE: A closer look businesses with expansion at the new board plans in 18 counties go to members. Page 5 seek state tax credits, startup grants and low-interest loans. “This is making Team NEO more a hub, a confederation, for the major economic development groups” in the region, said Team NEO chief executive Tom Waltermire in an meeting with Crain’s editors and reporters last week. “Team NEO will be the interface with JobsOhio and the community. It will not be making investment decisions (for JobsOhio), but it will be deciding on projects that JobsOhio should go after.” Expanding the board, he said, will give Team NEO greater ability to bring the entire region together as JobsOhio asks Team NEO to come up with a regional economic strategy that will guide JobsOhio in the allocation of its investment dollars, tax credits and other business incentives. See BOARD Page 5
INSIDE Growth on the menu As demand for its frozen products grows, longtime Cleveland resident Orlando Baking Co. is bolstering its presence in new and existing markets and eventually plans to expand its facility. John Anthony Read more about the company’s Orlando plans on Page 6.
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PHILANTHROPY Cleveland Sight Center, InfoCision Corp. team to provide training for visually impaired ■ Page 13 PLUS: NONPROFIT M&A ACTIVITY ■ FOUNDATIONS ■ & MORE
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 35