$2.00/OCTOBER 17 - 23, 2011
JANET CENTURY PHOTOS
Kent State University officials hope the school’s Math Emporium will help combat a 30% to 35% rate of students receiving a “D” or “F” in math or withdrawing from the university’s remedial algebra courses. Students in the lab use computer software to learn basic math.
NUMBERS MATTER AT KSU
Agency to present alternative uses for space-age technologies By DAN SHINGLER firstname.lastname@example.org
University invests $1.2M in Math Emporium to address students’ lagging abilities ABOVE AND BELOW: The lab is staffed at any time of the day with 10 faculty members and teaching assistants, who are available to answer students’ questions or coach them through complex problems, as shown here.
By TIMOTHY MAGAW email@example.com
NASA looks for launch into auto industry
n the first day of classes at Kent State University, a student looked math instructor Tracy Laux in the eye and remarked, “There’s no way out.” Indeed, no Facebook, no sleeping through a professor’s lecture and, basically, no way to coast through the university’s remedial math courses without putting the time and effort into actually learning the material. Seated in front of the available 247 computers in a sprawling, 11,154square-foot space on the second floor of the university’s library, students are tasked with using computer software to learn basic mathematics. Forget the
Building cars isn’t rocket science. But with all the challenges facing the automotive industry, could a little rocket science hurt? That’s how NASA sees it, at least, which is why it’s pitching 38 space-age technologies to automakers and their suppliers at an event at NASA Glenn Research Center on Oct. 27. “What we’re doing is showing them newer tech“NASA is open for nologies — things that didn’t business. We’re exist or weren’t even dreamed of 10 years ago,” opening our safe, said NASA technologist so to speak.” Paul Bartolotta, a material – Paul Bartolotta, science expert and the material science expert, agency’s point person for NASA Glenn Research the event. Center So far, Dr. Bartolotta said more than 100 companies have signed up to attend, including the Big 3 domestic automakers as well as Toyota, Honda and a slew of Tier One and Tier Two suppliers from around the country. What they’ll see are technologies specifically chosen by NASA and auto industry focus groups for their potential in the automotive industry. Each one will be presented in trade-show style by NASA’s own scientists and researchers, who will answer any questions that attendees might have. See NASA Page 35
See MATH Page 37
INSIDE Think bigger Solon-based miniature electronics maker Valtronic USA Inc. is looking for larger digs to accommodate the growing demand for its products. The company hopes to be in a larger facility by mid-2012. Read more about Valtronic’s plans on Page 8.
Issue 2 groups hope ads trigger emotion, voter action SB 5 campaigns aim to bolster numbers at polls By JAY MILLER firstname.lastname@example.org
Building a Better Ohio, the group
and repeal Senate Bill 5. SB 5 is the legislation passed earlier this year that takes away the right to strike and sharply curtails the collective bargaining rights of public employees. That both sides could use the same video to support opposing sides of an election issue demon-
strates to campaign watchers how little the two sides are helping voters still undecided about Issue 2. “I think the ads have been even more uninformed than they typically are,” said Paul Beck, a political science professor at Ohio State University who studies political See ISSUE 2 Page 37
SPECIAL SECTION NEWSPAPER
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mounting the television ad campaign to support the passage of state Issue 2, created a media firestorm last week when it was discovered using video — showing a young child being rescued from a burning building — that was lifted from a We Are Ohio ad, a spot created to persuade voters to reject Issue 2
Crain’s honors Northeast Ohio’s leading financial officers for their outstanding fiscal leadership and asset management ■ Page C-1
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 42
CRAIN’S CLEVELAND BUSINESS
THAT BELT’S GETTING AWFULLY TIGHT
COMING NEXT WEEK
U.S. consumers’ spending levels fell in four of five key areas from 2008 to 2010, a clear sign of the toll the recession has taken on household budgets. The U.S. Bureau of Labor Statistics reports that among the five categories, spending rose only for health care — a category in which prices never go down and far outpace inflation, as well as consumers’ take-home pay. Here’s how spending shaped up in the five categories:
Out-of-the-box benefits We look at some of the nontraditional benefits Northeast Ohio companies offer as a way to reward employees and stay competitive. From concierge services to employee discounts, some firms go beyond the basic health insurance offerings.
Consumer spending patterns, 2008-2010 Average annual consumer expenditures for selected components
REGULAR FEATURES Big Issue .....................11 Bright Spots ................18 Classified ....................38 Editorial ......................10 Going Places ...............14
OCTOBER 17 - 23, 2011
List: Colleges and universities ...............34 Personal View..............10 Reporters’ Notebook....39 Tax Liens.....................15
2008 % change
Food away from home
Gas and motor oil
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV
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OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
Grant boosts local charter school operator Breakthrough will use federal money to open three new sites By TIMOTHY MAGAW email@example.com
its footprint across Cleveland. The U.S. Department of Education divvied a pot of $25 million to nine charter management organizations across the country. Breakthrough, which is headquartered in Cleveland, received the secondlargest amount doled out and was
The federal government will inject about $3.4 million over the next two years into the coffers of Breakthrough Schools, a local charter management organization, as it continues to expand
the only recipient in Ohio. The latest grant announcement is part of a $250 million investment this year by the Obama administration in charter schools. The funds will support the opening of three new Breakthrough schools next year in the city — one at East
125th Street and Woodside Avenue in the old Captain Arthur Roth School building and two more in the former Woodland Hills Elementary School at East 93rd Street and Union Avenue. The money also will support the expansion of more Rosskamm grade offerings for three of the network’s six existing schools —
Athersys’ fundraising harder after stock drop
– Wes Wilcox, general manager, Canton NBA Development League team owned by the Cleveland Cavaliers
A (LONG) SHOT AT THE PROS
Issuance of new shares not likely unless price recovers from 43% dip
In D-League tryout, Crain’s staffer finds out what it’s like to take a step up in competition
By CHUCK SODER firstname.lastname@example.org
By JOEL HAMMOND email@example.com
See TRYOUT Page 12
TALE OF THE TAPE Title: Assistant editor Age: 29 Height: 5-10 Weight: 140
Résumé: Played a year of JV ball at Austintown Fitch High School, near Youngstown. … Accomplished high school cross country runner. … Youth basketball coach in Cleveland’s west suburbs.
Crain’s assistant editor Joel Hammond finishes a fast break with a layup at a tryout for the Cavaliers’ NBA Development League team.
THE WEEK IN QUOTES “I think it’s a different NASA than we’ve seen in the past — more open and wanting to share their technologies with the industrial community.” — Ed Nolan, vice president of product development and engineering, Magnet. Page One
See BOOST Page 35
“(He) looked like a basketball player.”
rive by my family’s old house in Austintown, Ohio, and the same basketball hoop my dad put up in the ’80s improbably still stands — weather-beaten, but erect nonetheless. We moved out of that house in 1999, but the memories linger. On that hoop, I was Mark Price, the Cavaliers dead-eye point guard from the glory days of the late ’80s and early ’90s. I was going to play in the NBA, and I was going to find a way to stop the next Michael Jordan from making the next Shot over the next Craig Ehlo. Fast forward 20-some years, and I never made it to the NBA. Heck, I never made it to the high school varsity team. But a guy can dream, right? So when the Cavaliers announced they would hold open tryouts for their new NBA Development League franchise, which calls Canton home, my interest was plenty piqued. “I should try out,” I shouted at my boss, “and write about it.” And so there I was at 7:30 a.m. on Oct. 8 at Saint Ignatius High School in Cleveland’s Ohio City neighborhood, one of 28 guys vying for a spot at NBADL training camp in November — but probably only one of a few wondering just what the heck I’d gotten myself into.
Citizens Leadership Academy, Near West Intergenerational School and Village Prep. Breakthrough opened three other schools this fall. “The grant is certainly very significant,” said Breakthrough CEO Alan Rosskamm. “The fact that we did so well in a public
“It’s big, it’s bold, it’s innovative. This is the kind of thing other universities in Ohio might want to do.”
“We have a lot of companies interested in this type of space. We’re excited to have more product on line.”
— Lester Lefton, president, Kent State University. Page One
— Tracey Nichols, economic development director, city of Cleveland. Page 9
“No job is too small for Duke, either. He’ll grab a broom and sweep up after an event without being asked. ... He’s a true team player.” — CFO of the Year nomination for Richard “Duke” Jankura, JumpStart Inc. Page C-8
Lauren Migliore can’t name one good reason why Athersys Inc.’s stock price has fallen 43% since Aug. 1. Regardless, the true value of the Cleveland company fell with it, to some degree, said Ms. Migliore, an equity analyst for Morningstar Inc. in Chicago. That’s because Athersys, unlike many companies, likely will have to raise more money at some point over the next year or so. Considering Athersys’ current share price — $1.54 when markets closed on Thursday, Oct. 13 — it now would have to sell off a much bigger piece of itself to generate the same amount of money as when its shares were selling at $2.72 on Aug. 1. There are other tactics Athersys can take to raise money, Ms. Migliore said, but any route involving the public market will be harder to take unless the company’s stock price goes up. The stock is a better buy now that the price is lower, but the company certainly isn’t better off for it, she said, noting how she revised her estimate of the company’s true value to $3 per share from $4 after the stock began to slide in early August. “The price that the firm’s trading at is directly related to the value of the company,” said Ms. Migliore, one of several Athersys watchers who see promise in its MultiStem technology, an adult stem cell therapy that is being tested on patients who have suffered from heart attacks, strokes and other conditions. Athersys officials noted that raising a significant amount of money by issuing new shares would not be an attractive option at the current share price, given how dilutive it would be to existing shareholders. The company, however, could avoid the public market entirely by raising money through deals with strategic partners, said Athersys CEO Gil Van Bokkelen. See ATHERSYS Page 36
CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Gilbert’s Bizdom U protégés set to work on new startups By CHUCK SODER firstname.lastname@example.org
We Buy Luxury Timepieces and Large Diamonds for CASH! 11 Locations Serving the Cleveland Area
Dan Gilbert is out to find the next Dan Gilbert. This week, the first group of Cleveland-area entrepreneurs to enter Mr. Gilbert’s Bizdom U program will start trying to turn their ideas into businesses. The five-month long entrepreneurial boot camp is designed to spur the creation of innovative businesses in Cleveland. Mr. Gilbert, who owns the Cleveland Cavaliers and several other businesses, started the program four years ago in Detroit, his hometown. The 30 entrepreneurs entering Bizdom U Cleveland were accepted from a pool of 350 applicants and represent people of various ages, races and education levels, said Andradia Scovil, recruiting leader for Bizdom’s Cleveland program. They have two things in common: They all have ideas for businesses that can be brought to scale, often with the help of information technology, and they have the passion to make it happen, Ms. Scovil said. “They have the results-driven attitude that we’re looking for,” she said. Bizdom U Cleveland is almost identical to its counterpart in
Detroit. During the “Idea Generator” phase of the program, entrepreneurs will spend three nights a week hashing out their business plans with experienced entrepreneurs and gauging consumer interest in their ideas. They’ll work out of the Quicken Loans call center on West Third Street. Then participants will pitch their ideas to Bizdom U officials, who will select some of them to participate in the Launch Labs phase of the program, during which they will work full time on their businesses for three months. Those selected will receive $10,000 and $4,500 for each of the company’s founders. In exchange, Bizdom U receives an 8% stake in the business, which is meant to help sustain the nonprofit program. Companies would be required to stay in the city at least until they receive money from other investors. The entrepreneurs will be guided by Paul Allen, who has helped start or lead several information technology companies over the past 20 years. He also spent six months leading the Shaker LaunchHouse incubator in Shaker Heights. Mr. Allen said he wanted to join Bizdom U partly because the nonprofit uses the “agile” approach to
developing startups, which focuses less on planning and more on getting a product to market quickly. Plus, he also likes that Bizdom focuses on businesses at the idea stage. “That’s where, on a regional basis, we really need to focus,” said Mr. Allen, who spent eight years living in Silicon Valley. Over the past two years — after Bizdom U evolved into its current form — graduates of the Detroit program have launched 11 businesses that remain active, employing the founders and occasionally other employees. Among the businesses are Launch Learning Group, which aims to help people who want to sell insurance pass state exams; Krysalis Fit, which sells fitness products by hosting parties at people’s homes; and Pickett Report, which provides an online tool that gives people looking to move information on not only the amenities in a neighborhood but the lifestyles of the people who live there. Bizdom U has raised funding from Mr. Gilbert, the Ewing Marion Kauffman Foundation of Kansas City and the New Economy Initiative for Southeast Michigan. It also aims to raise money from organizations in Northeast Ohio. ■
Duke Realty continues NE Ohio market exit By STAN BULLARD email@example.com
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with Pittsburgh-based financial investing firm Private Wealth Advisors Inc. and its PWA Real Estate affiliate is the new owner of the Great Northern Corporate Center I, II and III office buildings in North Olmsted. The sale last week of the 273,379square-foot complex for $26.7 million by Indianapolis-based Duke Realty Corp. resumes Duke’s long drive to exit the region. The real estate investment trust began shedding Northeast Ohio properties in 2005 in a quest to invest in stronger economies with higher rents. The effort stalled as realty financing dried up in 2008 with the credit crunch and worsened during the recession. The new owner of the complex of three ivory-colored four-storybuildings in North Olmsted is PWA Great Northern Corporate Center LP, a partnership formed by PWA Real Estate LLC. The lookalike, interconnected buildings at 24950 Country Club Boulevard have a 10% vacancy rate, PWA said of the only Northeast Ohio property that its website shows in its portfolio. The office complex adjoins Interstate 480, is virtually across the street from Westfield Great Northern mall and is surrounded by restaurants, hotels and office-warehouse properties. Both PWA Real Estate and Private Wealth Advisors share the same Pittsburgh address, according to Cuyahoga County land records.
PWA Real Estate’s website says it holds an apartment complex in Athens, Ga., and five contemporary office buildings — four in Pennsylvania and one in Indianapolis. The sale is a sign that lending is more available for prime commercial realty transactions, though not necessarily from bank lenders. PWA Great Northern acquired the North Olmsted complex with a $20 million loan from Archetype Mortgage Funding I LLC, a Miami Beach-based lender that provides securitized mortgage loans for commercial investors. Archetype is part of the Miamibased LNR Partners financial concern that also buys commercial properties and serves as a special servicer for distressed properties held by banks. Duke acquired two buildings at Great Northern Corporate Center in 1998, soon after it entered the Northeast Ohio market. Duke continues to own 10 office buildings in the Rockside Road office market in Independence and Seven Hills. Duke shed its nine east suburban office buildings and multiple industrial buildings and land before the bottom fell out of the commercial realty market. A PWA Real Estate spokesman did not return a call. David Browning, managing director of CBRE Inc.’s Cleveland office, which handled the sale, said it is a good sign that the area is attracting interest of outside local groups. ■
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Volume 32, Number 42 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 © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
Madoff case work pumps up Baker Hostetler’s New York office Law firm now plans for life after famed, shamed Ponzi schemer By AMANDA FUNG Crain’s New York Business
NEW YORK — A recent ruling by a federal judge ultimately may slash $5 billion off the amount of money that Bernie Madoff trustee Irving Picard can claw back for the mega-fraudster’s victims. The decision was a major setback for Mr. Madoff’s erstwhile clients and Mr. Picard’s cases going forward — but don’t worry about his firm, Cleveland-based Baker Hostetler. Nearly three years after Mr. Madoff was arrested, one clear winner in the biggest Ponzi scheme in history is the New York office of Baker Hostetler, which has ballooned from 68 lawyers when the case began to 165 today while the firm has taken in $179 million in Madoff-related fees. At the end of last month, it put in for another $44 million in fees for the four months of work ended May 31. “The opportunity to take a lead role in the Madoff matter is extraordinary for a law firm,” said John Niehoff, a partner at Baker Tilly Virchow Krause, an accounting and consulting firm for the legal industry. The case has transformed Baker Hostetler. But the firm’s attorneys will need to plan carefully to make the transition after the inevitable end of the record-setting legal windfall. The firm’s partners say they’re well aware of the dangers and are determined to skirt them. They note that their big case has yielded not only cash, but also invaluable experience and exposure that they already are building upon. “This is the largest and most complex case any firm has ever handled,” said George Stamboulidis, managing partner of Baker Hostetler’s New York office. Steering the growth of the staff has been an intense learning experience, as the firm’s leadership has tried to stay ahead of the mounting demands for space, staff and computing power. Most of the firm’s Madoff-related work is done out of the New York office, located at 45 Rockefeller Center. Since moving there in 2007, the firm has grown so fast that the office’s sole conference room, up on the ninth floor, often is booked up days in advance. To ease the crunch, the firm will take another 44,000 square feet in the building, spread over five floors, in 2012. That will bring its total footprint at the property to roughly 166,000 square feet. The new space will allow the office to accommodate 190 lawyers. It’s hard to believe that when it opened just over a decade ago, there were only three lawyers in sublet space at 666 Fifth Ave. The growth is mirrored in the 95-year-old firm’s gross revenues, which totaled $386 million last year. That figure was up 17% from the year-earlier level — representing the third-highest gain logged by any of the nation’s 100 largest law firms, according to The American Lawyer.
That’s some paper trail Arguably, Baker Hostetler’s biggest advances have grown out of its need to manage a case that involves investigations in 20 countries and more
than 1,000 lawsuits against funds that fed money to Mr. Madoff as well as to banks and other parties, including New York Mets owner Fred Wilpon. To date, the case has generated enough paper to extend for more than 5,000 Picard miles if all the sheets were lined up; if all the electronic data were printed out, it would fill in excess of 5 million four-drawer filing cabinets. Hundreds of attorneys in the firm must be able to manage, track and share all the information. To allow for that, Baker Hostetler has built its own state-of-the-art computer system, which will far outlast the Madoff case.
“The case has given us strength in other practice areas,” said David Sheehan, chief counsel to the Madoff trustee and a Baker Hostetler partner. “When the case winds down, we will use the proprietary platform we built for Madoff clients to support and service other clients.” The firm is not wasting any time. In June, Baker Hostetler created an e-discovery and technology team in New York to use its expertise and its system for other cases. Several outside observers approve of its strategy. “So far, the firm has executed well in investing the extraordinary
amount of income generated by Madoff in other areas of the firm,” said Peter Zeughauser, founder of law consultancy Zeughauser Group, which has done work for Baker Hostetler. The firm has had a hand in lots of other prominent cases predating Madoff. It successfully pushed the U.S. Polo Association’s case of trademark infringement against designer Ralph Lauren. In the Enron case, Baker was tapped by the U.S. Department of Justice to monitor Merrill Lynch’s corporate compliance activity. Separately, the firm was charged with monitoring Bank of New York. But, there are cases and then there are cases of the magnitude of the Madoff debacle, with the amount of
intensive labor it requires. “It’s highly unlikely that they will be able to replace the work immediately once the Madoff case ends,” said Mr. Niehoff of Baker Tilly. That’s where Baker Hostetler partners say that another big plus associated with their monster case comes into play: It has put a relatively unknown law firm on the map. Two years ago, Mr. Picard himself told The Wall Street Journal that the case is “something that will be good for the firm’s reputation.” His partners maintain it has enhanced their ability to attract clients and lawyers. Most recently, Baker Hostetler hired a new partner in its intellectual property practice and made offers to two other lawyers. ■
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Software outfit eyes regional move Solon property provides room for anticipated growth By STAN BULLARD firstname.lastname@example.org
MRI Software, which provides realty data tracking software for property companies and corporations, is focusing on a building in Solon as a potential new headquarters. MRI has received a jobs incentive grant from the city of Solon if it moves its 230 employees to 28925 Fountain Parkway from its current offices at One Harvard Crossing in Highland Hills. David Post, CEO of MRI, said the company is close to signing a 10-year lease for a new global headquarters operation and expects to do so “on an imminent basis.” Mr. Post said MRI searched more than 30 buildings and ruled out the idea of moving out of state before settling on the former Agilysys Corp. headquarters in Solon. Agilysys earlier this year moved its headquarters to Atlanta and sold a remaining division here to OnX Enterprise Solu-
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tions of Toronto, which moved the operation to Bedford Heights. “The additional space accommodates some of the growth we anticipate in our three-year plan and allows for rapid expansion in the space,” Mr. Post said. “When Agilysys renovated the building in 2007, it made it a class A property. They installed the infrastructure that suits a technology firm such as MRI. Finally, it’s about talent. To attract talent you have to offer fair compensation and a good, pleasant working environment.” Moreover, he said, the new office would be on a single floor that would facilitate communication among different working groups and create a “healthier culture.” Abigail Plumb-Larrick, MRI’s global marketing officer, said the company wants to secure more space for future growth, both through acquisitions and increased sales. The 100,000-square-foot office in Solon would double the amount of space MRI has in Highland Hills and would accommodate growth to more than 300 employees in the next four years, Ms. Plumb-Larrick said. “It’s fantastic space,” Ms. PlumbLarrick said of the former Agilysys space. “It provides flexibility and Solon provides a lot of amenities for employees while being close to where we are.” MRI will receive state and local incentives to help defray its costs for moving to Solon and staying in Ohio. As MRI considered an out-ofstate headquarters — Mr. Post declined to say what non-Ohio locations it eyed — the Ohio Tax Credit Authority approved a 60% credit for state income taxes over an eight-year period. The credit covers the current $13.8 million payroll when the company moves to the new location and the projected $21.5 million in additional payroll it expects to add in the future. Greg Woods, an Ohio Department of Development spokesman, said MRI agreed to stay in Ohio for at least 11 years and set a goal of hiring 10% of the additional payroll with people who meet minority or disadvantaged criteria. MRI also received a job creation
tax credit from the city of Solon which will equal half the municipal income taxes paid by the company and its employees for the next 10 years. That means the city will issue MRI a check ranging from $150,000 to $250,000 annually depending on the size its payroll reaches the prior year, for a decade, according to Peggy Weil Dorfman, Solon economic development manager. It’s worth it, according to Ms. Dorfman. “This is a wonderful project,” she said. “We’re pleased they found what they needed in Solon.” MRI taking the former Agilysys office will fill the second-largest industrial vacancy in the suburb, she said. The likely gain for Solon and the Solon-based investor group JPS Properties that owns the Fountain Parkway property comes at the expense of Highland Hills and One Harvard Crossing, an office building where MRI has occupied nearly 50,000 square feet since 2005. Donald King, managing director of the Gotham King Fee investor group that owns One Harvard, said he hopes to retain MRI, but if it vacates there is at least one other group that may be in the market for the space. Neither Mr. King nor Mr. Post would disclose specific rents. Mr. Post said part of MRI’s desire to move is cultural. The firm occupied the One Harvard space when it was owned by Intuit Real Estate Solutions, but it now is an independent company. “By changing buildings and our space, we’re trying to redefine the company’s culture by separating us from our old surroundings,” Mr. Post said. MRI, which produces and maintains software that real estate companies can use to track tenant data and operations and corporations can use to track their properties, was sold to Vista Equity Partners of San Francisco in 2010 by Mountain View, Calif.-based Intuit. Some of MRI’s growth will come from acquisitions. Earlier this month, it acquired Bostonpost Technology of Bedford, N.H., which sells a webbased software serving owners of affordable housing programs. ■
Signet enters joint venture to develop proton therapy center in San Diego Signet DevelopAdvanced PartiON THE WEB Story from ment, part of Signet cle Therapy for www.CrainsCleveland.com. this landmark Enterprises LLC in Akron, said it has closed a $165 project,” said Tony Manna, chairman million debt facility with Advanced of Signet Enterprises, in a stateParticle Therapy LLC to construct ment. “This transaction represents the Scripps Proton Therapy Center the largest single source debt facility in San Diego. of any U.S. proton therapy center The project, when completed, and marks a major milestone in our “will represent the newest and most inaugural project with APT.” technologically advanced facility in Proton therapy is an advanced the treatment of tumor based form of radiation therapy that uses cancers,” Signet Development said accelerated protons extracted from in a news release. The 103,500hydrogen atoms to precisely treat square-foot treatment and research cancerous tumors throughout the center will be one of just nine such body. centers offering the proton therapy Through the joint venture with technology in the United States and Advanced Particle Therapy, Signet will treat up to 2,000 patients annuDevelopment said it will “continue to ally, the company said. provide development services for Signet Development is Advanced and be equity owners in future proParticle Therapy’s joint venture partton therapy centers, including the ner in the development and will be Maryland Proton Treatment Center.” an equity partner in the center upon That center is scheduled to break its completion. ground by the end of this year, “We are honored to partner with Signet Development said.
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OCTOBER 17 - 23, 2011
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Even companies that make really small stuff sometimes need more space. Valtronic USA Inc. likely will buy a much bigger plant in Northeast Ohio in time to have it up and running by mid-2012, said president and CEO Jim Wimer. Given its growth, the maker of miniature electronics will need a building at least twice the size of its 26,000-square-foot plant in Solon, Mr. Wimer said. “I’ve got to find some space, and quickly,” he said. Since the start of the year, Valtronic has added 32 people to its staff. Now the company employs 94 and is out of space, said Mr. Wimer, noting that Valtronic is working with NAI Daus of Beachwood to find an adequate plant. The lack of space already is limiting production: To keep up with growing demand, the company recently bought four used “pick and place” machines, which put tiny electronic components on printed circuit boards. Two of them, however, are sitting idle in the company’s plant at 6168 Cochran Road. The company doesn’t have adequate space to use them, and it would need to have a new transformer attached to the building before turning on more machines. “I’m out of space, and I’m out of
power,” he said. Sales at Valtronic — which makes electronic parts for medical devices, industrial machines and other products — are up by 30% this year over 2010, Mr. Wimer said. Last year’s sales beat 2009’s by about 20%, he added. One factor driving recent growth is Valtronic’s push to sell finished printed circuit boards along with the packaging that houses them. The effort, which began a few years ago, is helping Valtronic attract customers who would rather contract out such assembly work, Mr. Wimer said. Another factor is that Valtronic’s customers have been moving ahead with research and development projects that they had postponed because of the recession, he said. That means more new products for Valtronic to help design and produce. Valtronic had considered adding another 25,000 square feet to its Solon plant. The addition, however, would cost an estimated $5.5 million, while the company expects to be able to buy and outfit a larger plant for roughly half that amount, Mr. Wimer said. Moving also would speed up the expansion process by at least a few months, he said. The city of Solon has discussed offering Valtronic a job creation grant if it stays within the city, but it likely wouldn’t be big enough to sway the company’s decision, Mr. Wimer said. ■
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OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
Acquisition caps PolyOne’s specialty business foray By ANGIE DeROSA Plastics News
Observers laud the vision of Avon Lake manufacturer’s CEO
PolyOne Corp.’s acquisition of ColorMatrix Group Inc. marries a major masterbatch house with a globally dominant player in liquid colorants, a formidable union as consumer products groups seek one-stop-shop suppliers for their packaging needs. The $486 million purchase, announced Oct. 3 by Avon Lakebased PolyOne, means that more than 50% of its operating income will be derived from specialty chemicals compared with 2% in 2005, PolyOne chairman, president and CEO Stephen
Newlin said. Experts are not unhappy with the purchase price, which represents a valuation of 11 times earnings before interest, taxes, depreciation and amortization (EBITDA). Two sources agreed that it’s not about Newlin the purchase price, but rather the return on investment. ColorMatrix is expected to provide about 15% return on investment annually. “This is a great move and I do not
have any problems at all with price they paid,” said Bill Ridenour, owner of Polymer Transaction Advisors Inc. in Newbury, Ohio. “Even if it grows modestly, it will grow out of that purchase price. Even at 10% growth in earnings per year, it will be a wonderful acquisition for them. This is a deal that they should be making. It could have made sense for any of the major masterbatch houses.” PolyOne officials declined further comment until its Oct. 26 conference call when it will announce third quarter operating results. The deal caps off an aggressive strategy to beef up PolyOne’s specialty business. The force behind the strategy is Mr. Newlin, who has been PolyOne’s top executive since 2006. Prior to that, he served as president of the industrial sector of Ecolab Inc. His career also included executive positions with Nalco Chemical Co., during which time he served as president of both Nalco Europe and Nalco Pacific. He has a reputation as a very
position in injection molding and pipe extrusion. Through the 1990s, it grew its European business. ColorMatrix set up a joint venture in the United Kingdom to establish that European base. By the time it was acquired by Audax Group in 2006, it had footholds in Hong Kong and Brazil. Audax acquired ColorMatrix at a valuation of 9.6 times EBITDA. After Audax purchased it, ColorMatrix acquired DosiColor in Latin America, and fluoropolymer firm Colorant Chromatics Group, which added to its growth in Europe. In 2009, it opened its commercial facility in Moscow. In terms of technology, ColorMatrix is at the forefront, sources said. Now it has in its portfolio HyGuard Oxygen Scavenging System, an oxygen scavenger additive. ColorMatrix boasts it as game-changing, engineered to enable fully recyclable, fully protective PET packaging for oxygen sensitive beverages and food. It offers that product to the likes of beer makers Baltika and Heineken, along with soft drink companies such as PepsiCo and Coca-Cola Co. ■
good operator, one source said. Mr. Newlin has been “ruthless in pursuit of that strategy but he’s been successful,” Mr. Ridenour said. “The fact that the stock price dropped 25% didn’t stop Newlin at all. I give him a lot of credit.” Dmitry Silversteyn of Longbow Research LLC in Independence, said that Mr. Newlin deserves the benefit of the doubt. “PolyOne hasn’t done anything in last few years to make me feel they are irresponsible,” Mr. Silversteyn said. “Goals that he put out in 2007 looked so out of reach and so fantastic, I don’t think people took him seriously.” PolyOne has already reached those goals. “Clearly, he’s a detailed and strategic thinker,” Mr. Silversteyn said. ColorMatrix is dominating the world in liquid colorants, Mr. Ridenour said, and has unparalleled technical prowess and great depth of technology and technical staff. ColorMatrix began in Cleveland in 1978, building its expertise in liquid colorant dispersion, according to its website. It established its
Angie DeRosa is a correspondent with Plastics News, a sister publication of Crain’s Cleveland Business.
FILE PHOTO/RUGGERO FATICA
Tyler Village, located in the St. Clair-Superior neighborhood, is composed of more than a dozen industrial-age buildings.
Developer plans $9M Tyler Village investment
By JAY MILLER firstname.lastname@example.org
The developer of Tyler Village in the St. Clair-Superior neighborhood on the eastern edge of downtown is hoping to nearly double the usable office space at the old industrial complex. Greystone Commercial Real Estate’s Anthony Asher told a Cleveland City Council committee last Tuesday, Oct. 11, that he plans a $9 million redevelopment of one of the more than a dozen industrial-age buildings that sprawl over more than a city block at East 36th Street and Euclid Avenue. The developer hopes to populate the building, called Building 42, with young, growing businesses looking for unique office space. Building 42 is a six-story brick building with 158,280 square feet. The complex is home to about 25 businesses, including Opera Cleveland, John Deere, a charter school, an audio studio and marketing firm DigiKnow. They occupy about 170,000 square feet in several buildings and employ nearly 300 people. While some space remains in those buildings, Mr. Asher said after the meeting that it’s time to prepare another building for future growth — a rare example of speculative real estate development in the weak economy. “We’ve got a lot of prospects (for the remaining space in the existing buildings) and a lot of them will roll
over into this new space,” he said. It doesn’t hurt that starting now will allow the city of Cleveland to apply for a 2011 $4 million state Job Ready Sites grant to help finance the complex. The city also plans to make available $700,000 in low-cost loans, $180,000 of which can be forgiven if certain goals are met. The plan is to gut the building, replace windows and create modern office space over the next 18 to 24 months. The goal is to have a building that meets the highest green building standards, a requirement for the state Job Ready Sites grant. Tyler Village once was the home of the W.S. Tyler Co., which made elevator cabs. It built a 24-building, 1 million-square-foot industrial complex on the 10-acre site before succumbing to changes in the industry after World War II. Greystone took on the complex in 2005 and steadily has demolished obsolete buildings for parking and strategically refurbished and marketed the better buildings. Council committees will continue to review the financial package over the next few weeks but the project likely will be approved since it has overwhelming council support. City of Cleveland economic development director Tracey Nichols told council that a market for this kind of space exists in the city. “We have a lot of companies interested in this type of space,” she said. “We’re excited to have more product on line.” ■
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OCTOBER 17 - 23, 2011
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t’s easy to ridicule the Occupy Wall Street protestors. They’re not particularly eloquent, and their demands — crowdsourced, appropriately, for a social media world — aren’t very clear. You probably wouldn’t expect a business newspaper to embrace the anti-corporate specifics of the Occupy Wall Street agenda, to the extent they exist, and we don’t. Not exactly, at least. But as the movement spreads across the country, including to Cleveland, and heads into its second month, it’s worth considering why this protest seems to be finding a voice. Those who dismiss Occupy Wall Street as just a bunch of bitter class warriors who can’t cut it in the working world are missing the deep feelings of anger throughout the country at bailouts, the lousy job market, growing income inequality and the influence of corporate money on the political process. Regardless of how you feel about their point of view, members of the conservative Tea Party have proven to be effective in drawing attention to, and then support for, their vision of smaller government and lower taxes. But remember how they were portrayed at the start? National media focused on the people at rallies who would hold up the most derogatory and offensive signs. Every protest movement has those, but they shouldn’t invalidate the real concerns of citizens, honestly and passionately expressed. At their base, the Tea Party and Occupy Wall Street share a core concern: This country isn’t working. Literally, for 9.1% (officially; in reality it’s nearly 20%) of Americans, and figuratively, for virtually everyone. In a much-discussed post last week titled “Here’s What the Wall Street Protestors are So Angry About,” the website BusinessInsider.com ran a series of 41 charts that paint a disturbing picture of the American economy. (You can find the post at http://tinyurl.com/69p3ghb.) Trends in employment, wages, bank lending and more all are going in the wrong direction. As Business Insider.com notes, “The problem in a nutshell is this: Inequality in this country has hit a level that has been seen only once in the nation’s history — at the end of the 1920s — and unemployment has reached a level that has been seen only once since the Great Depression. And corporate profits are at a record high.” We certainly don’t begrudge people making money. Corporations should maximize their profits, for the good of shareholders and workers. But everyone, Republican and Democrat, should be concerned that the income gains at the top are not being accompanied by gains in the middle class and among the poor. Indeed, recent federal data showed that working-age households saw their real income decline in the first decade of this century — a clear sign the nation’s economic engine has sputtered. Both Occupy Wall Street and the Tea Party are powerful symbols of discontent. So we say, good for them. Keep raising hell. Maybe this kind of pressure will bring a clarity of vision to policymakers that so far has been lacking, to the country’s detriment.
FROM THE PUBLISHER
It’s time to hang up the BlackBerry
office, so back I went. Because you know ears ago, my wife and I sat in the we can’t go an hour or two without darkness of a Playhouse Square emails, right? theater (I’m pretty sure it was So I was thinking as I walked that I was The Palace) and howled to the beginning to realize why our kids could non-stop jokes of Jerry Seinfeld. One of not imagine us taking so long to respond the best themes centered on him and his to their text messages. There was a time father — more specifically his angst — not that long ago — that I would have about becoming his father. answered with my usual misMany of you probably know sive about how not all people the shtick, about how Jerry had BRIAN are tethered to their phone and begun making “old man noises” TUCKER drop everything they do to when he got up from a chair, and reply to a text message, blah, that he was afraid it was just the blah, blah. start of his becoming his dad. But that was way back then The question is: Can you (maybe a year, maybe less). become your kids? Boy, how things have changed, Of course not, you say. And and my awakening began with you’d be right, mostly. the realization that I went back But let me share an experifor my phone, despite the fact ence from last week, when I was that I would only be away from the office scheduled to speak before the Cleveland for a couple hours, at most. Metropolitan Bar Association’s corpoSo there I am, walking down Saint rate law section. The site was its offices Clair Avenue, juggling my umbrella and in the Galleria, so I looked forward to BlackBerry, trying to check my emails. A the walk from our Warehouse District quick glance showed me that I had none, address. so I slipped it back into my pocket. Of I got to the elevator and realized I had course, that was Wednesday and by now — gasp — left my smart phone in my
we all know that Research in Motion, the maker of what once was the most powerful phone/data device on the planet, was in the midst of a major, worldwide problem. As I write this, my BlackBerry still hasn’t forwarded any emails for two days, RIM’s stock was dropping, and it had all the potential for what one telecom analyst called a “bloodbath.” So at a time when there are actually more American wireless subscribers (327.6 million) than there are Americans (315.5 million), RIM and its heretofore handheld juggernaut were on the ropes. “Dear BlackBerry,” Advertising Age quoted one angry tweet last Thursday, “please give me a refund so I can buy an iPhone.” The AdAge Digital story went on to say that RIM had done little in two days other than hold a short phone conference with reporters and post notifications on its website and Twitter. After several BlackBerries, RIM just lost me. And I’m guessing I’ll be joined by thousands, if not millions, of users like me. Oh well, RIM, it was a great run for a while. ■
MMPI deal warrants more consideration By JAY MILLER
t may be time to review the meaning of a public-private partnership. While media regularly champion the idea of a public-private partnership, we don’t always accept the notion that in these deals government is going into private business with a company, not the other way around. The company is not going into the government business. In recent articles, The Plain Dealer and the weekly Scene “exposed” that MMPI Inc., the Chicago company that is building the new medical mart and convention center, is not pursuing the kinds of medical technology tenants everyone expected to populate the medical mart. (Or at least, it’s not succeeding in the pursuit of those tenants.) Their stories suggested that, behind
Mr. Miller covers government for Crain’s Cleveland Business. the scenes while no one is looking, the Chicago company is jeopardizing the $465 million in public tax dollars that are building the complex on Cleveland’s mall. They say the medical mart concept might not succeed. The media report that instead of trying to sign med-tech firms to come to the medical mart, that would, in turn, attract doctors and hospital purchasing executives to Cleveland, Med Mart officials are pursuing educational institutions that would bring doctors interested in learning new best practices and brushing up on old skills. The suggestion that this private business is doing something funny, something being hidden from the public, mis-
understands key issues about publicprivate partnerships. I’ve not spoken to anyone from MMPI and so I’ve not heard their side of the story. But my observations are based on what I know about how this deal came together and how the private sector operates. Before getting into specifics, a little history is instructive. This march to a medical mart and convention center was not like con man Harold Hill in the musical “The Music Man,” telling River City elders they needed a marching band. It was not MMPI, the private partner, that said a medical technology showroom would succeed in Cleveland, and please give us millions of dollars to build it. That idea was produced locally. It was first floated in the 1980s and then See VIEW Page 11
OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
THE BIG ISSUE What do you think of the Occupy Wall Street, Occupy Cleveland and other protests?
What do you look for in a law firm?
I don’t think it will change anything. The way the politics are in our country, the way things are in Washington, D.C., (the rich) get what they want.
I hope it changes something as some changes are needed. Big government, big business, it doesn’t seem to be helping the small person.
I am all for visible and conspicuous voices for change. That’s how things happen in a democracy. It starts at the grassroots.
I’m for it; I’ve been (on Public Square at Occupy Cleveland) a week. When you have people too frustrated, it could flash into violence. But that won’t happen here. There is no leader here — a leader would have his (or her) own agenda.
➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.
View: Deals change in business world
Competing in today’s business climate can feel like you’re in the jungle. To survive, you need experienced advisors with the necessary legal skills and
continued from PAGE 10
brought to fruition by a campaign initiated by Cleveland Clinic president Toby Cosgrove and Cuyahoga County Commissioner Tim Hagan. Once local public support began to build, it was Clevelanders who sold MMPI on the idea and put together the deal that brought the real estate developer to Cleveland. If there was any deception, it was on the part of the locals. They, not MMPI, told us we should pay an additional tax to build a medical mart and convention center, and they painted pictures of doctors and hospital administrators coming to Cleveland to shop for fancy medical equipment. MMPI only agreed to the concept the public officials proposed. Further, let’s not forget the concept of a medical mart was wedded to a broader local issue. The ultimate goal is to bring conventioneers to Cleveland, whether they are health care professionals or auto parts makers. The city had an aging convention center that couldn’t compete with more modern facilities. The old convention center needed either to be closed, taking Cleveland out of the convention business completely, or the community needed to build a new one. In other words, the public mission is not to bring medical technology companies to an industry showroom in Cleveland. The mission is to build a successful convention center. But with other modern convention centers around the country struggling, selling the cost of a generic convention center would have been very difficult. So the politicians justified the cost of the building by finding a spe-
cialty niche. They chose the health care industry, a growing industry with a strong base in Northeast Ohio. That may or may not prove to be a good local decision. It’s important, too, to remember that this decision to go into business with a private developer involved taking a business risk, not a politician’s campaign pledge. When the community hears public officials expound their positions on a great many issues, they expect those statements to be inviolate pledges to follow very specific policies. However, businesses pledge only to remain profitable for their owners. That mission sometimes has harsh consequences for the communities that host those businesses — will Cleveland ever forget Art Modell taking his football team to Baltimore? — and cities never should forget that mission when they enter into a partnership with the private sector. So, MMPI came to town and started to market its medical mart to medical products makers. It appears the company explored the market and found the premise proposed by the Clevelanders wanting. So it decided to build its marketing around a different concept: more education, less hardware. If MMPI succeeds by attracting medical schools to the medical mart instead of bring in medical hardware makers, what difference does it make? It would be unforgiveable for a company to continue to build a boat it knows will leak and sink to the bottom just because the customer asked for the leaky design. The company has an obligation to build a different boat for its customer.
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And since MMPI is a private company and two other cities followed Cleveland’s lead and announced plans for their own medical marts, it wouldn’t be smart for MMPI to announce loudly and publicly, so the competition can hear, that it’s going in a different direction. Let Nashville and New York continue to chase that other market. MMPI’s change of direction isn’t deception. It is — we can hope, since nothing is a sure thing — just a good business decision. ■
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Tryout: Hey, it’s harder than it looks continued from PAGE 3
I don’t remember what I was doing on April 6, 2009, but I most likely was watching the NCAA men’s basketball tournament championship game. I do know what Travis Walton was doing: playing for Michigan State, against North Carolina, in an eventual 89-72 victory for the Tar Heels. He’d just been named Big Ten Defensive Player of the Year. The 6-foot-2 swingman from Lima, Ohio, played professionally in Germany until May. Since then, he’s been conducting camps in Lima and East Lansing, Mich., where he was a three-year captain and ranks sixth in career assists with 555. What was he doing in Cleveland? “I’m trying to get a shot at the (NBA),” he said. Demetrius Fugate had the same thought — and didn’t let something small like the Pacific Ocean stand in his way. The 6-6 “big guard,” as he described himself, flew from Japan, where he was on a business trip, to Columbus the night before the tryout, and borrowed a friend’s car for the two-hour drive. Mr. Fugate played collegiately at Cincinnati. But Saturday didn’t start as well as he would have liked. In a
warmup three-man-weave drill, he injured his right ankle and spent some time with the trainer. After Sunday’s morning session, he hitched a ride to Cleveland Hopkins International Airport and flew back to Miami. He said he attended the Cleveland tryout to expand his options; in two weeks, he’ll be in training camp with the Idaho Stampede, an NBADL franchise located in Boise. Options are what Jay-R Strowbridge has, too. The Alabama native, a well-built, 5-11 point guard, played two years at Nebraska before transferring to Jacksonville State in Jacksonville, Ala., to be closer to family after a cousin was murdered. Later, he played a year at Oregon while earning a master’s degree in education. Two weeks before the Cleveland tryout, Mr. Strowbridge flew to Houston for a look with the Rio Grande Valley Vipers, but said he hadn’t heard anything from that team, whose open tryout had upwards of 80 players. So he drove from Ann Arbor, Mich., where his wife attends the University of Michigan’s Ross School of Business, to Cleveland for the tryout. **** YOU OFTEN HEAR COLLEGE
FOOTBALL PLAYERS, once they get to the NFL, talk about how much quicker the game is. Hogwash, I always thought — until this tryout. I made Austintown Fitch’s junior varsity team as a sophomore, but played only when we needed to foul at the end of games. And I found in the spring when I re-joined the track team that I was badly out of running shape. I didn’t play hoops again. Since then, I’ve played in rec leagues in Lakewood and Strongsville — but banned myself from those after becoming too angry at referees. (I hate losing. And bad officiating.) Now I play twice each week before work at a suburban high school with a group of guys I know well, and it’s a long way from the NBADL. First up was conditioning — a cakewalk for me but a struggle for some others. Then was the standard-issue three-man weave drill that most players learn as seventhand eighth-graders. (Some in the group struggled, and the bosses were none too pleased.) Then, though, came the games, 10 minutes each with teams determined by the Canton team’s director of player personnel, James Williams. And I immediately struggled,
Defense was a problem; this is former Cleveland State and Morgan State guard Joe Davis passing over Crain’s assistant editor Joel Hammond for an easy bucket. MARC GOLUB PHOTOS
attributable to being overmatched and in a gigantic hurry: a jumper off a screen that was woefully short. A 3-pointer nowhere close. Later, back-to-back shots rejected, one by P. Allen Stinnett, who played at Creighton and was the Missouri Valley Conference’s freshman of the year during the 2007-08 season. On defense — where I knew I’d struggle the most — my 140-pound frame had little chance against guys with a 40-pound head start, let alone the 6-foot-8 post player onto whom I somehow got switched. Leaving the city on Saturday night, I was discouraged. Then something clicked. Earlier that night, the Cavaliers’ staff installed a few plays run by the home team and probably everyone else in the NBA. It was basic stuff, though not all of my competitors got the gist, resulting in more frustration for the staff. On Sunday, my team’s point guard — Joe Davis, a Cleveland native who played at Cleveland State before transferring to Morgan State in Baltimore — was switched to another team, as about 10 guys didn’t come back for Sunday morning’s session. Taking over at my natural position, I commanded my team and
started knocking down shots: a runner in the paint on a play called “fist out,” where a big man and I ran a pick-and-roll on the wing. (Think LeBron James and Zydrunas Ilgauskas on the pick-and-pop for a Z jumper, with Anderson Varejao roaming the baseline as the “dunker” if LeBron drove the lane.) Later, a steal and on the other end, a nifty behind-the-back pass, which the team’s general manager, Wes Wilcox, said “was at just the right time. I don’t care about the behind the back; the timing was perfect.” After that was a nothingbut-net 3-pointer on a kickout from Mr. Fugate, and a fill-the-lane layup, again off a nice feed from Fugate. (What you see in the picture on Page 3.) “You looked like a basketball player,” Mr. Wilcox said. Now we’re talking. **** THE CAVS IN JULY OFFICIALLY ANNOUNCED their purchase of the NBADL’s New Mexico Thunderbirds and moved them to Canton, where the Charge will play at the Canton Civic Center. The Cavs for the past three years had shared the Erie Bayhawks with the Toronto continued on the NEXT PAGE ➤
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OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
Raptors, but wanted more control over personnel development, and thus now operate their own team. It was fitting that the Cavs’ representatives at the tryout had taken the long road to their current positions, because that’s the uphill battle facing any of the weekend’s players eventually selected for D-League training camp. Mr. Wilcox played at six different colleges before landing a job in the Miami Heat’s video room. After 10 months, he moved to the New Orleans Hornets, and when Paul Silas became the Cavaliers’ coach in 2003, Mr. Wilcox joined the team as an advanced scout. For the past three seasons, Mr. Wilcox had been the Cavs’ top pro scout. Mr. Williams, the Canton team’s director of player personnel, is an Atlanta native who played at Bryan College and until August was training players privately. In April, Mr. Williams sent letters to all 30 NBA teams, expressing interest in joining their staffs. The Cavs responded, and in August, he interviewed — “the longest interview of my life,” he said — and got the job. Now he’s in charge of finding potential players, communicating with their agents and other tasks. And then there was Ira Newble, who played with the Cavs for 4½ years — including on the 2007 team that advanced to the NBA Finals by finally knocking off the Pistons — and now, at 35, is awaiting the end of the NBA’s lockout before making his next move. (And yes, Mr. Newble agreed with me when I said that he and the other members of LeBron’s supporting cast got a bad rap.) Mr. Wilcox said he was looking for talented players who understand the game, can take instruction and play
Jay-R Strowbridge, who played point guard at Nebraska, Jacksonville State and Oregon, was one of the top players at the tryout.
There was a lot of looking up over the course of the two-day tryout, as the competition at times turned into a veritable dunk contest.
defense. “Everyone in the NBA can score,” he said on multiple occasions. Thus, the conditioning — “You wouldn’t go to a job interview at an insurance agency unprepared, so why come to a basketball tryout out of shape?” he asked — the offensive plays and, at the end of Saturday night and Sunday morning’s sessions, a “closeout” drill, which turns into a one-on-one game from the wing. The drill’s purpose is to see which players, isolated against top competition, can defend. I was a part of Sunday’s group, which also included the tryout’s top six players and Mr. Newble. After a few passes, it breaks down into just two players, and you’re not done until you get a
stop. And Mr. Davis, the point guard from Cleveland and Morgan State, absolutely ate me up on four straight possessions. Mr. Wilcox mercifully rotated me out. And despite being overmatched in that drill, I earned more compliments for my play on Sunday. “You were sharp, and controlled the game,” Mr. Williams said. “Once you
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Canton’s general manager Wes Wilcox ran the show.
James Williams is the team’s director of player personnel.
got comfortable and adjusted to the speed of the game, you looked good.” Mr. Wilcox told the group the Cavs would be in touch if there was a future for them in the organization. I won’t get a call, but I made enough of an impression to walk away happy. I purposely didn’t introduce myself to him, not wanting any special treatment. And he told me after the tryout that he had no idea
I was a reporter until Mr. Williams told him late on Sunday. He said — this probably doesn’t speak well to my profession’s reputation — he expected someone perhaps, ahem, a little heavier, with little skill. “Are you a D-League player? No,” Mr. Wilcox told me. “But you hung tough and were in control. You played well.” Good enough for me. ■
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
GOING PLACES JOB CHANGES CreatingValue.
ARCHITECTURE BRANDSTETTER CARROLL INC.: Bruce Whitehead to vice president; Ray B. DelaMotte to business development director.
ENGINEERING ALBER & RICE INC.: Ronald Shaw to senior civil engineer.
FINANCE LIBERTY BANK NA: Christopher J. Smerglia to senior vice president, commercial lending team leader; Jamie Brotherton to senior vice president, senior lender; Richard Parkin to vice president, commercial lending. OHIO COMMERCE BANK: Joseph Tymoszczuk to credit analyst.
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BOBER MARKEY FEDOROVICH: Andrea M. Gauding and Vanessa Anton to senior managers; Jennifer Elsass, Joanna Hoiles and Jonathan O’Donnell to managers; Harrison Orendorf and Nichole Prater to supervisors; Samantha Buemi and Matthew Lawrence to senior accountants. KEY EQUIPMENT FINANCE: Joseph A. DiLallo to vice president, corporate aviation finance. MCMANUS, DOSEN & CO.: Renee M. Moenich to member, accounting and financial services group. PEASE & ASSOCIATES INC.: Elizabeth Kroll to senior staff member, CFO services department. RETIREMENT SOLUTIONS: Christine Lynch to administrative assistant. SS&G: Alyssa Lane, Matt Long,
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Michele Linton, Linette Seifert, Marc Servodio, Aaron Saidel, Lauren Dunbar, Jeremy Banchek, Steve Brinker, Lindsay Turbow and Karen Cull to senior associates; Kyra Shank, Anne Marie Griffith, Lauren Larkin, Maureen Fertig, Sean Kilbane and Linda Wasco to managers; Mary Rutt and Kim Hocevar to associates; Theresa Wilson, Jennifer Rickenbacker and Dee Miceli to executive administrative assistants; Abby Surloff to senior administrative assistant.
CLEVELAND CLINIC: Dr. Brad Borden to chairman, Emergency Services Institute.
WEINBERG WEALTH MANAGEMENT LLC: Jared S. Miller to investment adviser.
GOVERNMENT CITY OF CLEVELAND: Frank J. Petrik to assistant commissioner, risk management and regulatory compliance manager, Division of Water.
MOSKEY DENTAL LAB: Ann Schmitt to certified dental technician.
INSURANCE BROOKER INSURANCE AGENCY: Jamie Debenham to vice president, employee benefits. HYLANT GROUP: Michael Dillon to service assistant, employee benefits group.
LEGAL TUCKER ELLIS & WEST: John Q. Lewis and Dustin B. Rawlin to partners.
MANUFACTURING VITAMIX CORP.: Donald Snyder to vice president, sales, Household Division.
BENJAMIN ROSE INSTITUTE ON AGING: Geneva Anderson to vice president, human resources. LAKE COUNTY YMCA: Greg Church to program director, East End Branch. RECOVERY RESOURCES: Megan Kleidon to director of programs and services. SUMMA FOUNDATION: Steven P. Schmidt to chief operating officer. TECHNOLOGY ENTREPRENEURIAL CENTER OF HUDSON: Michael DeAloia to fundraising development director.
REAL ESTATE CBRE: Susan Lines to senior associate.
NEO FOOD TOURS: Anya Hodgson to vice president, event development.
FATHOM ONLINE MARKETING: Kevin Herendeen to CFO.
GLAZEN CREATIVE STUDIOS: Jake Gearhart to 3D animator, editor and motion graphic artist; Annie Murmann to producer and scriptwriter.
RECOVERY RESOURCES: Raymond J. Marvar (Tucker, Ellis & West LLP and Premier Physicians) received the 2011 Exemplar Award.
STERN: Cortnie Redington to director of publicity and special events.
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OCTOBER 17 - 23, 2011
TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED Studio Techne Inc. 12210 Euclid Ave., Cleveland ID: 34-1790162 Date filed: Sept. 1, 2011 Type: Employer’s withholding, unemployment Amount: $332,192
CRAIN’S CLEVELAND BUSINESS
Date filed: Sept. 26, 2011 Type: Employer’s withholding, unemployment, corporate income Amount: $33,571 Northeast Contracting LLC 25446 Bryden Road, Beachwood ID: 20-4369728 Date filed: Sept. 7, 2011 Type: Employer’s withholding, unemployment Amount: $33,136 Signature Interiors Inc. 13275 Strathmore Drive, Valley View ID: 34-1881664 Date filed: Sept. 9, 2011 Type: Employer’s withholding Amount: $29,433 RJL Waterfront Holdings I Ltd.
1148 Main Ave., Cleveland ID: 32-0035888 Date filed: Sept. 7, 2011 Type: Employer’s withholding Amount: $27,504
ID: 75-3189085 Date filed: Sept. 26, 2011 Type: Employer’s withholding, corporate income Amount: $22,129
Amroc Construction Inc. 1900 Grove Court, Cleveland ID: 68-0650859 Date filed: Sept. 7, 2011 Type: Employer’s withholding, corporate income Amount: $26,876
Task Force Interiors LLC 3574 W. 44th St., Cleveland ID: 65-1313251 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $19,148
K Klass Masonry Inc. 15293 Sandalhaven Drive, Middleburg Heights ID: 34-0874223 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $26,845 Quality Care Residential Homes Inc. 9402 Rosewood Ave., Cleveland
Amount: $17,942 Baker Motors Towing Inc. 12214 Detroit Ave., Lakewood ID: 20-5027878 Date filed: Sept. 26, 2011 Type: Employer’s withholding, unemployment Amount: $16,240
NIA Childcare Enterprise Inc. 4020 Verona Road, Cleveland ID: 16-1749820 Date filed: Sept. 20, 2011 Type: Employer’s withholding Amount: $18,511 Ovid Group Inc. 8693 E. Craig Drive, Bainbridge ID: 26-0103951 Date filed: Sept. 1, 2011 Type: Corporate income
Toms Seafood Restaurant LLC 3048 Saint Clair Ave., Cleveland ID: 20-1350790 Date filed: Sept. 13, 2011 Type: Employer’s withholding, unemployment Amount: $15,091 Kidz Corner Inc. 3749 E. 142nd St., Cleveland ID: 26-0385951 Date filed: Sept. 26, 2011 Type: Employer’s withholding, unemployment Amount: $12,338
United Cable of Ohio Inc. 3682 W. 136th St., Cleveland ID: 34-1761468 Date filed: Sept. 20, 2011 Type: Employer’s withholding, unemployment Amount: $200,107 Arb Marine Group Inc. 69140 Parkland Blvd., Mayfield Heights ID: 31-1636806 Date filed: Sept. 1, 2011 Type: Corporate income Amount: $140,904 Woodside Childcare Inc. 2463 N. Taylor Road, Cleveland Heights ID: 34-1750335 Date filed: Sept. 1, 2011 Type: Employer’s withholding, unemployment Amount: $118,112 Furt Alliance Inc. 615 Rockside Road, Independence ID: 26-4066947 Date filed: Sept. 13, 2011 Type: Corporate income Amount: $76,001 Jatsek Construction Co. P.O. Box 41133, Brecksville ID: 34-1972639 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $72,913 Herbs Plumbing & Heating Inc. 2562 Noble Road, Cleveland Heights ID: 34-1785963 Date filed: Sept. 1, 2011 Type: Employer’s withholding, unemployment Amount: $44,387 Woodside Childcare Inc. 2463 N. Taylor Road, Cleveland Heights ID: 34-1750335 Date filed: Sept. 1, 2011 Type: Unemployment Amount: $42,525 South Euclid Cement Contractors Inc. 5770 Alberta Drive, Lyndhurst ID: 34-1890971 Date filed: Sept. 26, 2011 Type: Employer’s withholding Amount: $41,106 Kordiac Plumbing & Mechanical Co. 11010 Union Ave., Cleveland ID: 34-1808496 Date filed: Sept. 7, 2011 Type: Employer’s withholding, unemployment Amount: $39,184 Twinstar Group Inc. P.O. Box 361043, Strongsville ID: 05-0612383 Date filed: Sept. 7, 2011 Type: Employer’s withholding, unemployment Amount: $35,171 Coci Management Inc. 25801 Lake Shore Blvd., Euclid ID: 34-1631371
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CRAIN’S CLEVELAND BUSINESS
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OCTOBER 17 - 23, 2011
Creditors to vote on AmFin plan By MICHELLE PARK firstname.lastname@example.org
Nearly two years after it filed for Chapter 11 bankruptcy protection, AmFin Financial Corp.’s plan of reorganization is in the hands of its creditors. Voting is under way for the plan, which contains terms of repayment for various groups of creditors. If confirmed, it would bring an end to the administrative phase of the Chapter 11 case filed in November 2009 by AmFin, the former parent company of failed AmTrust Bank. The deadline for voting is today, Oct. 17. To be approved, AmFin’s plan must receive affirmative votes from a majority of voting creditors holding two-thirds or more of the dollar amount of the claims. The estate has about 100 creditors, not all of whom will vote, said Christopher Meyer, a Squire, Sanders & Dempsey partner and debtors’ counsel. Mr. Meyer anticipates approval. He estimates about 25 plan drafts were prepared throughout the process.
“We’ve spent time negotiating with people about what they want and what they need, and we’ve tried to address all of that in the plan,” he said. A confirmation hearing is scheduled for Tuesday, Oct. 25, before U.S. Bankruptcy Court Judge Pat E. Morgenstern-Clarren. If creditors do not approve the repayment plan, AmFin would need to go back to the drawing board, Mr. Meyer said. While the day-to-day involvement of the court in AmFin’s activities would end if the plan is approved, an appeal brought by the Federal Deposit Insurance Corp. and other litigation are pending, Mr. Meyer noted. The FDIC in late June appealed to the U.S. Court of Appeals for the Sixth Circuit a June 6 decision by U.S. District Court Judge Donald C. Nugent, who found that the FDIC failed to prove that AmFin made a commitment to keep AmTrust Bank capitalized. The FDIC had claimed it was owed more than $500 million because AmFin made
such a commitment, which AmFin denied. Creditor claims in the AmFin case total $170 million, not including the FDIC’s claims. The estate has in hand about $8 million to $9 million, according to Mr. Meyer. AmFin’s primary assets are real estate, the value of which is uncertain, and a tax refund it is to receive from the Internal Revenue Service, Mr. Meyer said. The estate will dispose of the real estate to maximize value as it can, he said. “Our best estimate is that we will not pay creditors in full,” Mr. Meyer said. The tax refund totals more than $194 million, though its payment has been delayed by IRS requirements, including an audit and a payroll tax return that was required and since has been filed on behalf of AmTrust Bank, Mr. Meyer said. AmFin will need to hold its money in reserve until its litigation with the FDIC is over, although the FDIC has agreed to let AmFin pay down claims of $25,000 or less, he said. ■
Thermoplastics oil pans grease Eaton’s business By RHODA MIEL Plastics News
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In the early 1990s, Eaton Corp.’s plastics unit was turning out highvolume interior and exterior trim parts, but its leaders were not certain if that was the kind of business on which the company could build its future. “That kind of market had been around for many, many years, and it was noticeable that our return on business was getting less and less,” said Stephen Roberts, manager of global plastics engineering. The company evaluated where its strengths were, and what would be better field for its plastics. Eaton, based in Cleveland, is more widely known in automotive for its powertrain components, transmissions, chassis and other functional parts. It made sense for its plastics to focus on the same area of the car. So Eaton shifted into highly engineered parts under the hood, becoming part of a shift from metal to plastic for some parts, especially the oil suction tube, which connects the oil pump to the oil pan. Now the company sees itself as leading another leap for plastics under the hood, this time in integrated thermoplastic oil pans which offer automakers lighter weight and more integrated parts, and that new business may lead to more global
production. That shift is being prompted by automakers who are both anxious to shave weight from their cars to meet increased fuel economy standards in North America while also contending with new emissions controls in Europe, Mr. Roberts said. Eaton has two thermoplastic oil pans in production already — used on Cummins diesel engines — and more ramping up for future vehicles. Traditionally, oil pans have been made of steel or aluminum. Thermoset plastics also have begun to see more business. Thermoplastic oil pans promise weight savings over metal, but the real selling point is that molders can integrate more parts into them. A plastic oil pan, for instance, can be delivered with gaskets, seals, baffles, heaters, sensors and the suction tube that first launched Eaton’s new business focus. The more parts that suppliers can integrate, the lower the production costs and complexity for automakers, Roberts said. Depending on the amount of integration, automakers could cut 10% to 15% of the weight for a basic oil pan configuration or 40% or more for one with more parts. If even more parts, such as oil filters, can be added to a system, that would lighten the weight even
more. “The limitation that we see for us right now is that we don’t have a manufacturing footprint in North America,” Roberts said. Eaton’s plastics expertise covers a range of processing methods — injection molding, compression injection molding, gas-assist molding, suction blow molding — but production is centered in Europe with manufacturing in Brierly Hill, United Kingdom, and Chumotov, Czech Republic. The company was making plans to expand manufacturing to the United States in 2008 — in part because of the increased interest in plastic oil pans — but backed off when the economy and auto production cooled down. It still is considering expansion, Mr. Roberts said. “That would have been our entry, but that’s not to say we aren’t looking at other opportunities,” he said. There are also growth opportunities in Europe to transfer more powertrain parts to plastic, he said, and Eaton expects to be at the front as lightweighting and emissions requirements push automakers to reconsider their traditional ways of making parts. ■ Rhoda Miel is a staff reporter with Plastics News, a sister publication of Crain’s Cleveland Business.
Stuart Lichter involved in $1.7M deal for part of Aurora complex If your company is a small construction or engineering ﬁrm or a provider of goods and services, we invite you to apply for our Business Opportunity Program.
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Stuart Lichter, a California realty developer well known in Ohio, is partners in an investment group that recently paid $1.7 million for a 198,000square-foot portion of the former Lucas Aerospace Building in Aurora. Mr. Lichter and Chris Semarjian, a Beachwood-based NAI Daus broker who regularly partners with Mr. Lichter, on Oct. 4 acquired part of the 1989-vintage complex as Lena Commerce LLC. The seller was PB IL Oreo LLC, according to Terry Coyne, a Grubb & Ellis Co. executive vice
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president who represented the seller and announced the transaction with a news release last week. PB IL Oreo’s address lists to Private Bancorp, a Chicago-based lender, according to Portage County land records. The lender took possession of that portion of the property Jan. 10, according to a deed in Portage land records, from JDI Aerospace LLC, a Chicago-based
investor group, and kept in place a loan of undisclosed size. The property has had multiple tenants through the years, and 66,000 square feet of the property that Messrs. Lichter and Semarjian acquired is empty now, according to Mr. Coyne’s brokerage website. Mark Nasca, a Chagrin Falls-based investor in JDI Aerospace, said the investment had been profitable through the long haul of its ownership but declined to discuss the January bank transfer. — Stan Bullard
CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Spice of Life Catering diversifies business with move By KATHY AMES CARR email@example.com
Spice of Life Catering Co. is kicking up its operation. The company that was founded in 2006 by Ben Bebenroth is moving from its shared space with Marigold Catering Co. at Lakeside Avenue in Cleveland into a new headquarters building at Detroit Avenue and West 58th Street in the Gordon Square Arts District, a move that was driven by a decision to branch out its offerings. Spice of Life, an upscale catering company that sources 95% of its ingredients from small family farms within a 100-mile radius of Cleveland, is incorporating a restaurant and bar, market and urban garden
setting into its business. It’s all intended to cultivate more patron interaction and inspire customers to become local food advocates, said Jackie Bebenroth, Ben’s wife and business partner. The 6,000-square-foot building serves Spice of Life’s purpose. The first floor will be dedicated to a 45seat restaurant and bar that also will function as the company’s special events space. An additional 60 seats will be available on the patio. Spice Kitchen + Bar’s opening date has yet to be determined, but the restaurant will feature five to eight seasonal dishes and four to five daily specials when operational. The second floor will house offices and private event space. Plans for a
rooftop patio also are percolating. Guests aren’t limited to the traditional dining experience, either. The Spice Rack retail space will sell a carefully curated collection of goods made by local foods artisans. The parking lot behind the building will transform into Spice Acres, an urban garden and farm with two hoophouses that will be used to grow produce for Spice of Life dishes. “We’ll encourage people to interact with the garden around them,” Ms. Bebenroth said. “Ultimately, we would like to use it as a springboard to another extension of the business — edible landscaping consulting services. We’d consult with individuals looking to establish chef’s gardens.” Spice of Life is retrofitting the site
for its needs. The renovation likely will cost $250,000, and Mr. Bebenroth still is scouting for private investors to raise money for the project. The total project investment is expected to cost $375,000. The company last week received a $40,000 National Retail Assistance Program loan, which included a $3,000 Gardening for Greenbacks grant through the city of Cleveland. The couple and chefs Brandon Walukus and Andy Strizak command the nine-employee operation; Spice of Life plans to hire an additional six employees. The catering outfit is on track to do $500,000 in sales this year. The company so far has that much booked in events next year. ■
FILE PHOTO/JASON MILLER
Ben Bebenroth, chef and founder of Spice of Life Catering Co.
BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s, highlighting positive business news in Northeast Ohio. To submit information, please e-mail Scott Suttell at firstname.lastname@example.org.
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■ ViewRay Inc. said the University of California’s, Los Angeles Health System and its Jonsson Comprehensive Cancer Center is the third oncology research center in the world to acquire a radiotherapy system from the Cleveland medical device company. ViewRay is developing its new research radiation therapy system to feature a patented combination of radiotherapy delivery and simultaneous magnetic resonance imaging. Nearly two-thirds of all cancer patients receive radiation therapy during their illness, according to ViewRay. The company said its system is designed to provide continuous soft-tissue MR imaging during treatment so clinicians can see where the radiation is delivered, as it’s delivered. ■ Cleveland law firm McDonald Hopkins LLC said its new office in Miami already is expanding. The firm’s office in Miami has moved to Suite 3130 on the 31st floor of the Southeast Financial Center “to accommodate growth and expansion.” “We are very excited that our space in the Southeast Financial Center enables us to grow in the Miami market,” said Raquel A. Rodriguez, managing member of the firm’s Miami office, in a statement. “We are actively recruiting talented and experienced attorneys to join our national practice groups.” McDonald Hopkins entered the Miami market in late April. ■ The Kowit & Passov Real Estate Group announced three new deals. Snap Fitness in February 2012 will open a 4,700-square-foot space in the Middlefield Square Shopping Center in Middlefield. Greg Guyuron and Adam Zimmerman with Kowit & Passov represented the landlord. The Ohio Association of Public School Employees has consolidated two local offices for a central location. On Nov. 1, the association will be at 3380 Brecksville Road in Richfield in the Alexis Park Office Building. Nanci Ferrante and Mr. Guyuron represented the landlord on this 4,448-square-foot lease. Family apparel store Citi Trends will open Dec. 1 at the Shore Center Plaza South in Euclid. Mr. Guyuron and Tori Nook represented the landlord on the 12,259-square-foot lease.
For the fifth year in a row, Crain’s Cleveland Business is honoring the area’s top fiscal officers with its CFO of the Year Awards. The honorees all have provided standout fiscal direction to their respective organizations, providing guidance during these times of economic uncertainty. An independent panel of judges reviewed the nominees, taking into account the following: candidate backgrounds; how the nominee contributed to the company’s growth and/or profitability; how the nominee contributed to other areas of corporate management; and how the nominee made contributions outside the company (such as social, nonprofit, family, faith-based and community involvement). This year’s judges were Marilyn A. Eisele, CFO and vice presidentfinance, The PDI Group; Guy Fabe, tax partner, PricewaterhouseCoopers LLP; J.T. Mullen, chief investment strategist, Fairport Asset Management; Michael J. O’Connor, financial adviser, Morgan Stanley Smith Barney; Stephen J. Smith, CFO, American Greetings Corp.; and Tim Pistell, retired CFO and executive vice president of finance and administration at Parker Hannifin Corp. Finalists and nominees will be honored at an event from 5:30 p.m. to 8:30 p.m. Oct. 25 at LaCentre Conference and Banquet Facility, Westlake. Tickets to the event can be purchased at www.Crains Cleveland.com/CFOTIX or by calling 216-771-5388.
2011 CFO OF THE YEAR FINALISTS ■ Bill Chorba, NineSigma Inc. PAGE C-2 ■ Mark Clark, FirstEnergy Corp. PAGE C-2 ■ Kathleen Dillon, Ohio Technical College PAGE C-4 ■ Elizabeth A. Donaldson, De Nora Tech Inc. PAGE C-4 ■ Gale W. Fisk, Greater Cleveland Regional Transit Authority PAGE C-5 ■ Mary Ann Freas, Southwest Community Health System PAGE C-6 ■ Betty J. Goodman, Vocational
Guidance Services PAGE C-6 ■ Dave Hamrick, InfoCision Management Corp. PAGE C-7 ■ Dennis Jancsy, Medical Mutual of Ohio PAGE C-7 ■ Richard “Duke” Jankura, JumpStart Inc. PAGE C-8 ■ Elaine Kapusta, Dots LLC PAGE C-8 ■ Michael E. Mayher, Lakeland Community College PAGE C-8 ■ Scott A. Morgan, Cuyahoga County Public Library PAGE C-10
■ Chris Pascarella, Enprotech Corp. PAGE C-10 ■ Vincent Petrella, Lincoln Electric Co. PAGE C-11 ■ Michael Pressnell, ClarkReliance PAGE C-11 ■ Barry Reis, Jewish Federation of Cleveland PAGE C-12 ■ Cameron C. Rubino, OrthoHelix Surgical Designs Inc. PAGE C-12 ■ Susan Suvak, Majestic Steel USA Inc. PAGE C-13 ■ Robert Trabucco, Sterling Jewelers Inc. PAGE C-13
* PROFILE INFORMATION IS FROM CFO OF THE YEAR NOMINATION FORMS
ELSEWHERE IN THE SECTION ■ Meet the judges. ■ Check out last year’s event. A look at last year’s CFO of the Year Awards ceremony, in pictures. ■ Meet the nominees. Put names of our other CFO of the Year nominees with their faces.
ON THE WEB: For profiles of past winners and coverage of the last four CFO of the Year events, visit www.CrainsCleveland.com/CFO.
CRAIN’S CLEVELAND BUSINESS
BILL CHORBA NineSigma Inc. ◆ Beachwood
ill Chorba’s breadth of knowledge, positive outlook and ability to command tough challenges with integrity have advanced a Beachwood company’s financial position. Mr. Chorba has been a key driver behind the growth in NineSigma’s revenue, which in 2010 was $9 million. The business development organization attributes the CFO’s cost-containment strategies and capital-raising efforts to continued
growth that forecasts 25% to 30% year-over-year revenue gains over the next several years, as well as realized revenue growth of more than 20% last year. “Budget pressures, increasing red tape, helping with tough strategic decision-making and restructuring companies in difficult times have become more common for the top finance chief,” the nomination said. “Bill has handled these pressures with class.”
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Mr. Chorba’s efforts to advance the business include outside capital raises to spur accelerated growth, helping to identify new markets for expansion and overhauling vendor relationships. His most recent initiatives include moving many core on-premise IT platforms to the cloud, which bolster the speed and efficiency of NineSigma’s IT systems with little associated costs. Mr. Chorba’s corporate management contributions also extend into strategic planning, human resources issues, board meetings, legal aid and compliances, team building and investor relations. “His positive attitude, creative thinking and ability to listen and lead make him a stand-out in every project, even those outside the finance realm,” the nomination said. The CFO also has proposed an employee wellness program aimed at increasing health awareness and fostering a more healthy work environment. He also engages employees in the company’s well-being by educating them on the organization’s vital statistics. “Understanding the importance of upholding a high level of fiscal stewardship, he openly shares performance data status and financials with employees,” the nomination said. “This candor and honesty has eliminated the element of fear that developed as a result of the most recent economic downturn.” Mr. Chorba’s involvement outside NineSigma includes participation in the Ohio Society of CPAs as an executive board member. He also is former treasurer of the Pi Lambda Phi Educational Foundation, which provides scholarships and development programs to foster the growth of future leaders.
MARK CLARK FirstEnergy Corp. ◆ Akron
ark Clark grew up in Akron and has spent his career at FirstEnergy and its predecessor company, Ohio Edison. With more than 30 years at the company, Mr. Clark has been with the organization during periods of significant growth, primarily through acquisitions of other regional energy companies. “As CFO, Mark has streamlined the company’s financial operations to ensure the strategic alignment with business objectives,” the nomination said. “He improved liquidity during the most challenging economic period in recent history while maintaining investment grade metrics and shareholder dividends.” In February, Akron-based FirstEnergy Corp.’s acquisition of Allegheny Energy Inc. closed, marking the beginning of the utilities’ combined operation. According to the nomination, the merger was expected to generate annual revenues of more than $16 billion with assets of nearly $46 billion. “As a result of his actions to strengthen the company’s balance sheet, FirstEnergy was in the position to capitalize on the $8.5 million merger with Allegheny Energy,” the
nomination said. “Mark designed the financial blueprint for the merger working to position the transaction to be accretive to earnings in the first full year after completion.” Mr. Clark has held a number of positions in finance, operations and strategic planning. He became FirstEnergy CFO in April 2009. At the company, he has a broad range of responsibilities. For example, he has overseen the development of new management reports that provide transparency and clarity to all of the company’s business units. Additionally, he serves in the capacity of being a sought-after adviser in the company, one who is frequently called on for his advice and insight. “He has been instrumental in the company’s growth from a relatively small, vertically integrated regulated utility to a diversified energy company with both regulated utility operations and a competitive generation business,” the nomination said. “His vision and leadership were key to developing the strategic focus that helped build the company on a solid base of financial strength and flexibility.”
JUDGE’S PROFILE Marilyn A. Eisele CFO and vice president of finance ◆ The PDI Group Marilyn A. Eisele joined Solonbased The PDI Group in April 2011. PDI is a designer and producer of munitions trailers, weapons containers/ modules, weapons loaders, aircraft tow vehicles, weapons adapters, munitions assembly conveyor systems, tow bars, specialized electronic equipment for smart weapons, steerable axle systems and components used primarily by the United States and 38 allied air forces. Prior to joining PDI, Ms. Eisele worked as CFO of Five Star Technologies Inc., an advanced materials company that developed and manufactured proprietary electronic materials for the mobile displays, photovoltaics and microelectronic
packaging markets. She also was CFO to several informationbased technology startups and served as CFO to two public companies. After obtaining her undergraduate degree from Bowling Green State University, she was with PriceWaterhouseCoopers for 15 years serving public and private companies with a specialization in mergers and acquisitions and high-growth businesses. She and her husband, Mark, live in Shaker Heights and have three children.
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OCTOBER 17 - 23, 2011
KATHLEEN DILLON Ohio Technical College ◆ Cleveland
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hio Technical College’s enrollment and staff have grown markedly in the 10 years Kathleen Dillon has spent at the school, located on East 51st Street in Cleveland. Ms. Dillon’s responsibilities, too, have grown, as she has a hand in nearly every aspect of the school’s operations as its executive vice president. She also is OTC’s acting chief financial officer. OTC has grown to 256 employees from 50 when Ms. Dillon arrived at the school, and its enrollment has spiked to 1,500 from 250. The school reported 2010 revenues of $19.55 million. The school in 2009 opened its PowerSport Institute in
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lizabeth Donaldson has been busy. As if navigating De Nora Tech Inc. through the economic downturn wasn’t enough, Ms. Donaldson also has contended with developing a new reporting structure to accommodate the company’s Italian-based parent company, Industrie De Nora. That company acquired De Nora — a Chardon firm that specializes in electrochemical technologies — in 2005. Since then, Ms. Donaldson, De Nora’s manager of administration, finance and control, has created
North Randall. As the school has grown, Ms. Dillon has lowered its bad debt percentage, from 2.24% to 1%, by improving tuition collection methods. She also collaborates closely with OTC accountants and banks to ensure compliance with the Accrediting Commission of Career Schools and Colleges, which oversees OTC and other colleges like it. Ms. Dillon over the last two years has upgraded the school’s payroll system to one that features more employee-friendly access, and the school also has benefited from the implementation of online banking and electronic funds transfer payments.
OTC and Ms. Dillon have tightened budgetary processes, “in an attempt to keep spending focused on items that will benefit the education of our students,” the nomination said. This move has “allowed the college to have a spending guideline to follow in order to make sure the college is properly reinvesting in itself.” Ms. Dillon played a key role in the expansion of the school’s bookstore, which has helped the school’s revenues grow, and in developing an online e-commerce presence for the store. The school in 2009 was named the school of the year by Tomorrow’s Technician magazine and toolmaker Chicago Pneumatic. “Ms. Dillon has had a very positive impact in putting OTC on the map,” the nomination said. “Without her expertise and financial insight, the school would not be able to expand and embark on its continued growth.”
a financial reporting system that meets the United States’ Generally Accepted Accounting Principles and the format required by De Nora’s new parent. She also designed a new annual budget process and sales and costing systems as required by the Italian company. “(Her) disciplined and flexible leadership through these challenges have allowed De Nora to succeed in (its) mission to be the industry leader in providing innovative technologies to customers worldwide,” the nomination said. She served as the leader for the management and implementation of a global transfer pricing project, which organized all De Nora companies — in Germany, Singapore, India, China and Brazil, in addition to the United States and Italy — under common policies acceptable to those countries’ respective tax authorities. Ms. Donaldson also implemented an inventory optimization initiative and advised the company’s man-
agement team on the imminent relocation of its U.S. headquarters, from Chardon to Concord; that move will be completed by the end of this year. Through those measures, De Nora has seen revenue grow 10% since the acquisition, and it remained profitable through the downturn thanks to a cost-reduction program devised by Ms. Donaldson. Ms. Donaldson, who oversees a financial and information technology staff of 10, also has remade the company’s medical plan, avoiding what the nomination form estimated as a 30% cost increase, and also developed a new deferred compensation plan that resulted in “significant” cost savings. The company employs 415 and reported 2010 global revenues of $210 million. “Beth possesses many of the attributes required to be a successful CFO, including strong communication skills, confidence (and a) deep understanding of the business,” the nomination said.
JUDGE’S PROFILE Guy Fabe Tax partner ◆ PricewaterhouseCoopers LLP Guy Fabe’s focus is primarily on publicly held, multinational companies. He was admitted to the partnership in July 2006 and has 18 years of experience specializing in areas such as accounting methods, consolidated returns, corporate restructurings, accounting for income taxes and foreign tax credit planning. Mr. Fabe joined PwC in 2002. Prior to that, he spent more than eight years at Arthur Andersen. He has extensive experience in the industrial products and automotive industries.
Mr. Fabe’s leadership roles in the business and civic communities include serving on the boards of directors for the Association for Corporate Growth, Cleveland chapter; Cleveland Leadership Center; and the Golden Age Centers of Greater Cleveland. He received his undergraduate degree from John Carroll University and his master’s degree from the University of Illinois.
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
GALE W. FISK
PAST CFO OF THE YEAR HONOREES
Greater Cleveland Regional Transit Authority ◆ Cleveland
f the budget-cutters in Washington, D.C., are looking for some guidance, they might want to call Gale W. Fisk. As the weak economy pushed down the Cuyahoga County tax revenues that fuel RTA, Mr. Fisk and his team at the transit agency’s Office of Management and Budget had to come up with nearly $18 million in operational cuts in 2010 and $30 million in overall expense reductions. In total, expenses that year were cut 12.6% to $208 million from $238 million in 2009. The $208 million figure brought expenses to 2004 levels. Mr. Fisk also reduced RTA’s capital improvement plan by more than half, to $53 million a year from $118 million per year, to accommodate new fiscal realities. The cost-cutting was aided significantly by the creation and implementation of TransitStat, a management program that uses advanced statistics to measure operational efficiency at RTA. The program is similar to Six Sigma or Total Quality Management lean management programs in that it offers a data-driven approach to identifying cost savings throughout the organization. RTA used it to find big savings in areas including overtime and inventory expenses. According to Mr. Fisk’s CFO of
the Year nomination, he also “put his financial expertise into other matters, including process improvements and implementing a fuel-hedging program for RTA.” By hedging RTA’s fuel purchases in the commodities market, Mr. Fisk helped the agency reduce 2010 diesel costs by well more than half, or about $10 million, to $7.4 million. Through these measures and others, Mr. Fisk helped RTA achieve a 2010 year-end balance of $20 million, up from $2.9 million in 2009. With the $20 million yearend balance, RTA for the first time since 1990 met its goal of having a 30-day end-of-year balance. Mr. Fisk is a graduate of the U.S. Coast Guard Academy, and he has an MBA from George Washington University. One of several positions he held with the Coast Guard was as finance director for the Great Lakes Region. In his final assignment, Mr. Fisk directed the activation of 300 Coast Guard reservists to Desert Storm in 1991. Mr. Fisk coached the Bay High School girl’s soccer team for 16 years, leading them to state championships in 1999 and 2002. Mr. Fisk is an assistant coach to his daughter on his granddaughter’s U10 travel soccer team.
■ Laurie Brlas, Cliffs Natural Resources Inc. (Large public company) ■ Robert G. O’Brien, Forest City Enterprises Inc. (Medium public company) ■ Mark R. Widmar, GrafTech International Ltd. (Small public company) ■ Gregory Robinson, Safeguard Properties LLC (Large private company) ■ Andrew Tanner, The NRP Group (Medium private company) ■ Frank Mercuri, Vocon (Small private company) ■ Michael A. Szubski, University Hospitals (Large nonprofit) ■ Craig Foltin, Cuyahoga Community College (Medium nonprofit) ■ Brian S. Kenyon, The Rock and Roll Hall of Fame and Museum Inc. (Small nonprofit)
2009 ■ Richard C. Ebner, Liberty Bank (Small private company) ■ Rick Coan, Garick LLC (Medium private company) ■ Steven C. Glass, Cleveland Clinic (Nonprofit global hospital) ■ John D. Grampa, Brush Engineered Materials Inc. (Medium public company) ■ Yvette M. Ittu, Greater Cleveland Partnership (Nonprofit civic and community) ■ Fredric “Fritz” Kohmann, Shearer’s Foods Inc. (Large private company)
FILE PHOTO/JASON MILLER
Cliffs Natural Resources CFO Laurie Brlas (center) with Crain’s publisher Brian Tucker and Marsh’s Bill Paul. ■ Julie McGraw, National Interstate Corp. (Small public company) ■ C. Michael Rutherford, Summa Health System (Nonprofit regional hospital) ■ John P. Sesek, Positive Education Program (Nonprofit human services) ■ Stephen J. Smith, American Greetings Corp. (Large public company)
2008 ■ Bonnie Barrett, Cleveland Foodbank (Nonprofit, human services) ■ Tom Browne, Bellefaire/ Wingspan Care Group (Nonprofit, health care) ■ Jenniffer Deckard, Fairmount Minerals (Large private company)
■ Mark Eisele, Applied Industrial Technologies (Medium public company) ■ John Flanagan, Howley Bread (Small private company) ■ Patricia Gaul, PlayhouseSquare Foundation (Nonprofit, arts and culture) ■ Ware H. Grove, CBiz (Small public company) ■ Michael Headen, United Way of Greater Cleveland (Nonprofit, community service) ■ Karen D. Melton, Kaufman Container Co. (Medium private company) ■ Tim Pistell, Parker Hannifin Corp. (Large public company)
2007 ■ David K. Creamer, Kent State University (Nonprofit, educational) ■ Glenn A. Eisenberg, The Timken Co. (Medium public company) ■ Richard H. Fearon, Eaton Corp. (Large public company) ■ Richard L. Garcia, Wastequip Inc. (Medium private company) ■ Craig Kaiser, YMCA of Greater Cleveland (Nonprofit, social services) ■ J.T. Mullen, The Cleveland Foundation (Nonprofit, charitable) ■ Frank Roddy, Swagelok Co. (Large private company) ■ Kevin V. Roberts, University Hospitals Health System (Nonprofit, medical) ■ Carole Sanderson, Herschman Architects Inc. (Small private company) ■ Thomas G. Smith, Forest City Enterprises Inc. (Small public company)
Dennis Jancsy Dennis, according to our calculations, you’re Column A, Row 1. Congratulations on your nomination for CFO of the Year from your friends and colleagues at Medical Mutual.
Health & Life Insurance © 2011 Medical Mutual of Ohio
CRAIN’S CLEVELAND BUSINESS
MARY ANN FREAS Southwest Community Health System ◆ Middleburg Heights
ary Ann Freas’ duties at Southwest Community Health System start with numbers, but they certainly don’t end there. As would be expected of a hospital system CFO, Ms. Freas is responsible for “the revenue-cycle function” at Southwest, which primarily includes “the transparency and credibility of the billing and collection processes,” according to her CFO of the Year nomination form. A major — and growing — component of that is establishing policies for financial assistance to uninsured and underinsured patients. She’s also responsible for capital and operating expenditure policies. Since Ms. Freas joined Southwest in 2008, the system’s number of
“days-cash-on-hand” has risen from 160 days to 232 days as of mid-2011, the nomination states. In turn, Southwest “has gone from an average breakeven operating margin to a consistent 3% to 4% for the past three years.” One measure of what she does: In handling Southwest’s $70 million debt portfolio, she “took advantage of refinancing opportunities … that have created over $600,000 in annual savings in interest expense.” Southwest counts on Ms. Freas, a John Carroll University graduate, to play an active role in business development initiatives. The nomination states she has “guided senior leadership through formal business planning to: open a new geriatric psychiatry nursing
OCTOBER 17 - 23, 2011
unit; acquire state-of-the-art linear accelerator equipment used in radiation treatment of oncology patients; construct a freestanding 24/7 emergency services facility in Brunswick; and implement major information technology applications to ensure patient safety, satisfaction and quality and efficiency of care.” She also has been “instrumental in enhancing the ‘Leadership Evaluation Management’ system so that it includes relevant, quantifiable metrics to be used in evaluating the performance of (Southwest’s) management team.” Ms. Freas shares her expertise and talent outside Southwest. For instance, she serves as the vice president of the board of trustees for the Ronald McDonald House of Cleveland. As that organization has been working on a strategic plan, Ms. Freas has provided financial forecasting services and has connected Ronald McDonald House officials with consultants to advise the organization on optimal strategies for investing funds.
ATTEND THE CFO OF THE YEAR AWARDS Crain’s Cleveland Business will hold its fifth-annual CFO of the Year Awards next Tuesday, Oct. 25, at LaCentre Conference and Banquet
Facility in Westlake. At the event, presented by Marsh, networking opportunities will be followed by the announcement of this
year’s winners. For more information or to register, visit www.CrainsCleveland .com/CFOTIX.
BETTY J. GOODMAN Vocational Guidance Services ◆ Cleveland
ver the past 20 years, Vocational Guidance Services has doubled the amount of revenue it brings in for its core mission: serving people with disabilities and other barriers to employment. All the while, the Cleveland nonprofit’s finance department has remained the same size. For both of those achievements, Betty Goodman deserves a lot of credit. Ms. Goodman has spent more than 32 years at Vocational Guidance Services, including 12 years as the nonprofit’s controller. She has served as chief financial officer since June. “It’s a big job — to be responsible for the financial management of an agency upon which almost a thousand individuals with disabilities and other barriers to employment rely for a weekly paycheck,” the nomination said. “And Betty Goodman does that job expertly.” Ms. Goodman’s lengthy tenure helped her develop a base of knowledge related to both the nonprofit’s internal fiscal matters and compliance issues involving federal contracts and grants, the nomination said. That knowledge not only has led her to teach and train others in the nonprofit and for-profit sector, but it also has helped Vocational Guidance Services remain in compliance with federal grant
guidelines for 30 consecutive years. Ms. Goodman has played a key role in securing additional funding that has allowed the organization to create thousands of jobs for people with barriers to employment, the nomination said. For instance, she was singly responsible for making Vocational Guidance Services a sponsor of the Ohio Department of Education’s Summer Food Service Program, which provides meals to low-income children at 13 locations during the summer. People with disabilities prepare and package the food. Ms. Goodman also worked to keep her finance department efficient as Vocational Guidance Services grew. Over the past three years, she introduced software that has allowed both the accounts payable and accounts receivable teams to use much less paper. She has authored financial policies to help the organization conform to Generally Accepted Accounting Principles and has worked to teach managers in other departments how to use financial data to analyze their own lines of business. The Streetsboro resident is active with several organizations. For instance, she is president of the Shiloh Missionary Ministry at the historic Shiloh Baptist Church, and she supports Kincaid Kindred Spirits, an advocacy group for minorities with sickle cell disease.
Join the Health & Wellness Crusade MARSH SALUTES THE CFO OF THE YEAR NOMINEES, FINALISTS AND WINNERS We realize that it is no small accomplishment to be considered for this award. We congratulate you on your outstanding performance as a corporate ﬁnancial leader. 1VCMJD4RVBSFt$MFWFMBOE 0)t
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
DAVE HAMRICK DENNIS JANCSY InfoCision Management Medical Mutual of Ohio ◆ Cleveland Corp. ◆ Akron
ave Hamrick has been such an entrusted asset in the InfoCision Management Corp. empire, even Gary Taylor’s family enlisted the CFO as a personal financial adviser when an illness had befallen the company founder two years ago. Mr. Hamrick’s financial acumen afforded the Taylor family the time to concentrate on critical family issues without putting their business and financial well-being at risk. He “not only guided InfoCision through the narrow channel to more stable financial waters, but also took on the additional responsibility for the financial and operational management of several outside businesses owned by the Taylor family,” the nomination said. “Dave continues to be a tireless and passionate worker who always has the best interest of the company first.” Since Mr. Hamrick joined the Akron-based call center operation in 2007, he has upgraded company financial systems and procedures, minimized expenses and has strengthened his department by realigning responsibilities and making key hires. Some of the fiscal initiatives accomplished under his watch: ■ revamping the operation’s tax reporting process by applying IRS guidelines and rules, helping the firm realize millions of dollars in tax benefits; ■ restructuring a complex $37 million corporate financing package that resulted in about $650,000 in annual savings and increasing working capital availability by $2 million; ■ negotiating a $6 million purchase and improvements loan for InfoCision’s expansion in Green, and coordinating a $3.2 million loan for the leasehold improvements to two corporate campus buildings; and ■ helping spearhead a complete business succession and continuity plan to ensure business continuance and success. “His contributions have helped InfoCision maximize profits and reduce expenses,” the nomination said. Mr. Hamrick’s cost-paring efforts stem from negotiating contracts with vendors rather than slashing employee benefits; in fact, the operation has continued to implement annual pay hikes and benefit increases. The 4,000-employee company posted revenues in 2010 of $173 million. “Dave has worked very closely with me on numerous initiatives including improved financial reporting and analysis, cost containment and meticulous analysis of business opportunities that will enable InfoCision to sustain double-digit growth,” said Mike Van Scyoc, chief strategy officer, in the nomination. Mr. Hamrick serves as treasurer of the call center operator’s board of directors. He also is a member of InfoCision’s executive committee. Mr. Hamrick serves as head coach for Ohio Storm Baseball, assistant youth wrestling coach for North Akron Wrestling Club, assistant youth football coach for the City of Green and is an adjunct teacher at the University of Akron.
ennis Jancsy joined Medical Mutual as executive vice president and CFO with more than 30 years of financial experience in health care ranging from working at Ernst & Young to CFO of Akron Children’s Hospital. That career positioned him to make a profound impact on the health insurer in just two years. Beyond the expected role of bulldog over the outfit’s finances, associates say he has invested in training his direct reports in the finance department. He has introduced new investing
techniques that will help the insurer with 2010 revenue of $3 billion obtain better yields. This has helped it cope with the roller coaster represented by the 2008 recession and its aftershocks as well as the looming challenge of federal health care reform. Mr. Jancsy is a financial executive who brings creativity, skills as a team player and strength as a leader to this job, the nomination said of the former health care industry segment leader for Ernst & Young’s national audit group in Cleveland. Both his bachelor’s and master’s degrees in business admin-
istration are from the University of Massachusetts. “Dennis joined Medical Mutual two years ago and brought strong technical knowledge and creativity to the finance function,” the nomination said. “He challenged the status quo and has led important change throughout the organization while being regarded as the ultimate team player and creating a sense of confidence among our board and senior leadership.” Mr. Jancsy also knows how to have fun and do some good. He was instrumental in helping downtown Cleveland serve as a scene for the movie, “The Avengers.” After the movie studio paid the insurer $20,000 for using its Rose Building on East Ninth Street for part of the filming, Mr. Jancsy saw it as a chance to give back. As a result, the insurer donated the
money to the Greater Cleveland Film Commission to help it attract more movie productions to the region, helping diversify its economy. He also has served as an adjunct professor in health care finance at Cleveland State University, and he helps safeguard finances as a board member of Old Trail School in Bath although his own children are past school age. He belongs to the Healthcare Financial Management Association, American Institute of Public Accountants and the Ohio Society of Certified Public Accountants. He also has served on the audit committee of the Catholic Diocese of Cleveland Foundation. Colleagues nominated Mr. Jancsy over his own objection. “Thank you,” his nomination said he told them, “but I believe, ‘He who exalts himself shall be humbled.’”
Proof that good leadership
Congratulations Mark T. Clark We’re proud to recognize our own Executive Vice President & Chief Financial Ofﬁcer, Mark T. Clark, as a ﬁnalist for CFO of the Year.
CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
RICHARD “DUKE” JANKURA
JumpStart Inc. ◆ Cleveland
Dots LLC ◆ Glenwillow
ichard “Duke” Jankura brings top level corporate experience and a Marine’s “first-to-fight” discipline to undertaking his post as CFO at the JumpStart Inc. nonprofit that helps ready early stage companies for venture capital investments. He leads the finance, information technology and administration team at the $14 million nonprofit where he instituted the financial systems after JumpStart’s 2004 founding. Those systems have a twist because the government and nonprofit foundation sources of its funding require trustworthy data to gauge the effectiveness of investments. He also managed JumpStart’s organizational growth for seven years and supervised details from ensuring regulatory compliance to helping early stage firms find funding. At JumpStart, he has a staff of three direct reports while earlier in his career he served as controller of the McDonald Investments stock brokerage, both as an independent company and after it became a subsidiary of KeyCorp. At the brokerage and investment banking house he managed a staff of five financial professionals. At McDonald he led the automation of its accounting system in the 1990s, standardized incentive programs and ran the challenging financial side of going through multiple mergers. That background equipped him to organize JumpStart in 2004 when it was created by the merger of four predecessor outfits. Mr. Jankura is a veteran of the
U.S. Marine Corps, where he was a first lieutenant in logistics. He continues to support the Marines today. He attends afterhours events in uniform, the nomination said, and his service is as much a part of who he is as his MBA and undergraduate business degree from the University of Hartford in Connecticut. “He’s not just a financial pro. Duke is the voice of positivity 100% of the time within the organization, has a great sense of humor and impeccable ethics,” the nomination said. “He’s the first to compliment a team member or pass along another’s achievement to the entire staff. No job is too small for Duke either. He’ll grab a broom and sweep up after an event without being asked, even if he was the one giving the keynote presentation. He’s a true team player.” A product of Leadership Cleveland, Mr. Jankura served on the board of Old Brooklyn Community Development Corp., is a past president of Young Friends of the Cleveland Museum of Art and is treasurer of the Institute of Creative Leadership, a nonprofit that provides experience-based leadership training programs to area business and other groups. At the community development level, he’s helped write strategic plans. He also helped organize a “Main Street” initiative, a state and national program that assists marketing and development of aging commercial districts. Mr. Jankura and his wife, Janet, have two young children. Mr. Jankura coaches his son’s baseball team.
laine Kapusta is more than a CFO for a women’s fashion retailer with more than 400 stores across the country. She’s an instrumental component of Dots LLC’s journey to becoming a national brand. Ms. Kapusta joined Dots in 1994 as controller, and her determination to take the company to the next level helped her to climb the corporate ladder, ultimately becoming vice president and chief financial officer for the company in August 2007. In fact, Ms. Kapusta was the chief architect of Dots’ sale to the New York private equity firm of Irving Place Capital last January, which is expected to allow the retailer to open 600 more stores nationwide and lead to a potential public offering of its stock.
MICHAEL E. MAYHER Lakeland Community College ◆ Kirtland
ichael E. Mayher not only brings insight and innovation to Lakeland Community College as its top business officer, he contributes to the state’s entire higher education community as well. For one, Mr. Mayher, who serves as Lakeland’s senior vice president for administrative services and treasurer, co-chaired a state task force charged with developing energy conservation goals for public
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She has been a leader throughout the Dots organization and has taken on a number of responsibilities, such as benefits planning, workers compensation, liability issues and the company’s budgeting and planning process. She also was instrumental in Dots’ opening a new distribution center and corporate headquarters in 2009. “She goes above and beyond her role in our company and leads her team to attain the highest caliber of results,” the nomination said. Simply put, Ms. Kapusta is a broad-based business leader, according to the nomination, and she brings value to all aspects of the business. “Elaine’s direct reports aspire to achieve the leadership qualities demonstrated by her each day.
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colleges and universities — something that prompted several higher education institutions across the state to invest millions in going green. He also was instrumental in developing Lakeland’s 20-year energy master plan, which serves as a road map to reduce the college’s direct and indirect greenhouse gas emissions by 60%. Under his leadership, the college also initiated a $6.3 million energy conservation project in 2008, which translates to more than $500,000 in annual energy savings. “Lakeland’s energy savings project has been identified as the best practice example and benchmark for post-secondary institutions throughout the state and country,” the nomination said. Mr. Mayher consistently thinks outside the box and embraces innovative ideas to cut costs while at the same time securing the best services. He oversees the departments of business services, administrative
They are impressed by her ability to think on her feet and quickly analyze difficult situations, asking the right questions to drive results,” the nomination said. “She pushes them to the next level of their abilities by communicating high expectations while supporting their efforts and removing the barriers to success.” Prior to her work at Dots, Ms. Kapusta was at Ernst & Young, where she worked to improve profitability through solid budgeting, staffing and progress monitoring. She rose to the rank of senior manager in her 11-year career at Ernst & Young. Ms. Kapusta, a graduate of John Carroll University, is married with three children and is actively involved in their extracurricular activities, such as show choir, cheerleading and the drama club. Somehow, she manages to squeeze in time to volunteer at the Cleveland Food Bank. “Her inherent devotion and passion for success allows her to lead by example,” the nomination said.
technologies and facilities management, three of the largest departments at the college. “He encourages his managers to investigate and propose new ideas for efficiency and sustainability, and is always open to suggestions,” the nomination said. He led the way for Lakeland and nearby school districts to save money on insurance in an effort to band together to gain more leverage in price negotiations. Mr. Mayher currently is serving as the chairman for the Ohio Association of Community College’s risk management task force to implement a group risk management and procurement program. “Mike Mayher is an outstanding business officer and brings insight and innovation not only to Lakeland Community College, but also to other institutions of higher learning in Ohio and across the nation,” the nomination said. Mr. Mayher is involved in several nonprofit efforts on the local level. For example, he serves on the board of trustees for the Lake County YMCA and volunteers for the United Way. Mr. Mayher is married with one son. He is a graduate of Cleveland State University.
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CRAINâ€™S CLEVELAND BUSINESS
SCOTT A. MORGAN Cuyahoga County Public Library â—† Parma
s keeper of the books for Cuyahoga County Public Library, Scott A. Morgan has made his mark. Mr. Morgan, the libraryâ€™s finance director since 2003, assisted in the successful passage of an operating levy for the library, and he made contributions to the libraryâ€™s longrange financial plan and capital plan that were essential in securing a AAA bond rating in 2010, the nomination said. That rating enabled the library
to sell $75 million in notes at a 3.79% interest rate to fund the libraryâ€™s capital plan, which will reduce the libraryâ€™s dependence on state funding and allow it to live within its 2.5-mill operating levy. (The libraryâ€™s levy is the lowest of nine library systems in Cuyahoga County, according to the nomination.) Additionally, Mr. Morgan has been instrumental in securing new revenues through grant funding and instituting new revenue-
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Jewish Federation OF CLEVELAND
OCTOBER 17 - 23, 2011
generating services, such as passport processing and photo services, at a time when public library funding is significantly reduced. Described as a man of â€œinfectiousâ€? spirit, dedication and professionalism, Mr. Morgan this year assumed the additional responsibility for directing the libraryâ€™s facilities operations. Now, he is operations director at a time when the library is engaged in the most significant capital program in its 87-year history. Under the capital plan, five to six new branch libraries are to be built â€” the first major public investments in some communities in decades. â€œScottâ€™s generous spirit and support for new initiatives have played an important role in the success of Cuyahoga County Public Library, which has been independently rated the nationâ€™s best large
CHRIS PASCARELLA Enprotech Corp. â—† Cleveland
hris Pascarella has had his hand in shaping the Enprotech Corp. that exists today. In his time as CFO for the Cleveland company, he has led initiatives that closed one division, divested two companies, discontinued major product lines and eliminated more than 30% of the companyâ€™s head count as part of restructuring plans. Enprotech is a provider of services and products for a wide range of
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library for two consecutive years,â€? the nomination said. All the while, Mr. Morgan is an open book: His commitment to transparency in government and responsible use of public funds has earned the library recognition for accountability in financial reporting. A University of Akron graduate, Mr. Morgan previously worked for two other libraries, more recently as finance director for Akron-Summit County Public Library and also as clerk/treasurer from 1986 to 1995 for Stark County District Library. Mr. Morgan has held nonprofit leadership roles, too: He is past president and vice president of both the American Cancer Society, Stark County chapter, and the Battered Womenâ€™s Shelter of Summit and Medina counties, as well as a past board member of other organizations.
industries including automotive, beverage and steel. Described as an â€œextremely talented and passionate individual,â€? Mr. Pascarella has led the organization to generate additional revenue and reduce costs. Since 2006, heâ€™s managed a $20 million reduction in working capital requirements, which continue to decline on an annual basis. â€œHe has the proven ability to create measurable change that directly impacts profitability,â€? the nomination said. Mr. Pascarella achieved aggressive earning targets for 2007, 2008 and 2010, and developed and implemented a new and consistent financial statement reporting, budgeting process and forecasting model to enable more accurate information for decision making. The company is on track to meet or exceed its financial plan for 2011. â€œLeadership is what sets Chris apart from other CFOs,â€? the nomination said, noting that Mr. Pascarella is not only the companyâ€™s top financial person, but a strong supporter of the companyâ€™s overall mission and a promoter of its culture. In fact, in 2011, Mr. Pascarella was one of 30 senior executives selected to participate in the Global Leadership Program, a 12-day intensive leadership and networking activity held in Japan and sponsored by Enprotechâ€™s international parent company, ITOCHU Corp.
JUDGEâ€™S PROFILE J.T. Mullen Chief investment strategist â—† Fairport Asset Management J.T. Mullen joined Fairport Asset Management in 2011, bringing more than 30 years of experience as an investment and finance professional. As chief investment strategist, he provides leadership and strategic oversight to Fairportâ€™s Investment Committee. Prior to joining Fairport, Mr. Mullen was senior vice president and CFO at The Cleveland Foundation. During his 23-year tenure, he crafted an investment philosophy that led to substantial growth of the foundationâ€™s endowment â€” from $400 million to $1.8 billion. Earlier in his career, Mr. Mullen was a manager with Arthur Young & Company and also with the Cuyahoga County Board of Commissioners. He earned his bachelorâ€™s degree from Cleveland State University. His current involvement includes the investment committees of United Way of Greater Cleveland and the Catholic Diocese of Cleveland Foundation. Mr. Mullen and his wife, Mary, have five children and four grandchildren.
Mr. Pascarella and his wife, Severine, have three young children. Mr. Pascarella coaches his children in the North Royalton munchkin soccer program. A graduate of Hiram College, Kent State University and Groupe ESC in Rennes, France, Mr. Pascarella now is in his third term on the Lawrence School board, for which he previously served as treasurer. Lawrence School is an independent, coeducational day school serving students with learning differences and attention deficits. Additionally, Mr. Pascarella is a member of the advisory council at Saint Albert the Great School in North Royalton.
CRAINâ€™S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
VINCENT PETRELLA The Lincoln Electric Co. â—† Cleveland
hanks to the fiscal management of Vincent Petrella, The Lincoln Electric Co. has been able to implement its strategic and global growth plans in an effective manner. â€œUnder Vince Petrellaâ€™s leadership, Lincoln has maintained an outstanding financial profile, a stellar reporting record and an excellent investor relations program during a time of substantial growth in the companyâ€™s profits and sales,â€? the nomination said. Mr. Petrella was elected CFO of Lincoln in 2004. He initially joined the company in 1995 as manager of internal audit, becoming corporate controller in 1997 and being elected an officer in 2001. Prior to joining Lincoln, Mr. Petrella worked for 13 years for PricewaterhouseCoopers LLP. â€œUnder Mr. Petrellaâ€™s management and direction, Lincoln has put in place a compelling strategy to maintain a strong balance sheet and performance,â€? the nomination said. â€œThe company always emphasizes that it is investing its strong cash flow in profitable growth and global expansion and shows that the company is earning a solid return via its organic growth.â€? Additionally, Mr. Petrella, a 1982 graduate of Baldwin-Wallace College, is lauded for his work in financial reporting and compli-
ance, as well as his creation of an investor relations program that has become more professional and proactive. â€œUnder his direction, Lincoln has achieved a high level of professionalism, transparency and sophistication in its financial affairs,â€? the nomination said. â€œAs a result of smart financial management under Mr. Petrellaâ€™s leadership, Lincoln has avoided restatements and has a good system and process in place to continue providing financial reports of the utmost integrity.â€? The companyâ€™s strong financial performance and proactive investor relations have aided in it receiving positive media coverage. (MSNBCâ€™s Jim Cramer has called Lincoln one of the nationâ€™s premier industrial companies.) â€œFeedback from institutional investors states that accessibility to senior management and credibility of the CFO are the top factors in a successful corporate investor relations program,â€? the nomination said. â€œMr. Petrellaâ€™s record in this area is exemplary.â€? In addition to his work in guiding the fiscal strategies of the company, Mr. Petrella also is known for acquiring and growing talent. He and his staff also have played a lead role in the companyâ€™s conversion to defined contribution retirement plans.
MICHAEL PRESSNELL Clark-Reliance Corp. â—† Strongsville
umbers can do a lot to represent the impact Michael Pressnell has had on Clark-Reliance. But he certainly isnâ€™t obsessed with numbers themselves. Instead, Mr. Pressnell wants to know about the factors that influence the numbers. â€œHe has a passion for understanding what drives the numbers he reports and in his quest to understand these costs, he is very often designing the process to reduce the costs,â€? the nomination said. For instance, Mr. Pressnell worked with insurance brokers to reduce Clark-Relianceâ€™s annual premiums to $350,000 from $1.5 million, all while increasing coverage for the company, which makes products for the power generation, petroleum, refining and chemical processing industries. Plus, he played a key role in helping Clark-Reliance control costs throughout the recession. As a result, the company laid off only three people and remained profitable, even though sales fell 16%. Mr. Pressnell also is known as a strong collaborator, the nomination said. For example, Mr. Pressnell works
closely with other department heads, helping them manage the day-to-day operations of the business and providing them the information they need to hold down costs, according to the nomination. Plus, every morning, he stops in the manufacturing department headâ€™s office to go over the day and offer help as needed, the nomination said. He helps complete due diligence on acquisitions, too. Mr. Pressnell graduated from Bowling Green State University with a bachelorâ€™s degree in business administration and afterward spent 15 years auditing middle market companies for Deloitte & Touche. He spent 15 months as CFO of the Carbone familyâ€™s real estate group before joining ClarkReliance in April 2001. He also does work for other businesses owned by the Figgie family. Outside of work, Mr. Pressnell is active with the Living Word Lutheran Church in Medina, where he is treasurer. â€œIn addition to being a great CFO, Mike is truly one of the good guys who has made a real impact on Clark-Reliance and on everything else he touches,â€? the nomination said.
Congratulations to NineSigmaâ€™s CFO, Bill Chorba, and to all of the 2011 CFO of the Year finalists. Thank you, Bill, for your financial expertise and outstanding leadership.
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UPCOMING EVENTS Crainâ€™s on Nov. 3 will continue its 2011 Ideas at Dawn business breakfast series with a panel discussion that will update attendees on best practices for entering international markets.
The panel is sponsored by Charter One, Benesch Friedlander, Coplan & Aronoff and ideastreamâ€™s Changing Gears. For more information and to register for the event, visit www.CrainsCleveland.com/breakfast.
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
BARRY REIS Jewish Federation of Cleveland ◆ Beachwood
ou might think running money for the Jewish Federation is not the big leagues — you know, nothing compared with managing the coffers of a sizable company, right? Wrong. Barry Reis has $1.9 billion he has to manage for the big nonprofit. It might be partially his own fault he has so much responsibility, though. After all, the federation’s accounts only had about $300 million before he came on board in 1984. It’s little wonder he was named CFO by 1991. “Barry Reis is a gifted financial professional who has provided excellent financial leadership to the Jewish Federation of Cleveland during his 27 years as it has grown to include $1.9 billion in assets,” the nomination said. A graduate of Cleveland Heights High and Miami University, Mr. Reis cut his accounting teeth at Arthur Anderson, but spent only two years there before joining the Jewish Federation. And, while a corporate CFO might only have to worry about his CEO and board of directors, Mr. Reis has far more constituents and benefactors to keep happy. The federation has more than 45 supporting foundations, along with more than 900 donor advised funds and 43 trusts, all of which Mr. Reis continually monitors, evaluates and works to improve. The federation’s pooled investment funds are available to other
Jewish organizations around Cleveland and it has $570 million in pooled money, from approximately 40 participating agencies, that it also invests under Mr. Reis’ direction. “Through hands-on involvement, he has successfully cultivated close relationships with agency leadership and many donors who trust and seek out his financial expertise,” the nomination said. “This trust has contributed to the federation’s growth and success in the development of donor advised funds and endowments.” In addition to his role as CFO, Mr. Reis is a senior vice president and member of the Jewish Federation’s senior management team. Mr. Reis leads a fiscal staff of 18, and is responsible for the information technology and donor services departments. He also manages the Jewish Federation’s multi-employer defined benefit pension plan, which covers more than 3,000 employees at 15 agencies, and the federation’s 403(b) defined contribution plan. Of course, that’s just Mr. Reis’ day job. He spends the rest of his time helping to raise four children and working in the community. Mr. Reis also has served on the University Heights Finance Committee and is the treasurer of the Maltz Museum of Jewish Heritage. He donates his time to Park Synagogue and was a member of the synagogue’s insurance, audit and investment committees.
CAMERON C. RUBINO OrthoHelix Surgical Designs Inc. ◆ Medina
ameron Rubino has been CFO of OrthoHelix Surgical Designs Inc. since May 2007, coming into the role two years after the company’s founding. You know a CFO is doing something right when he’s nominated by an investor in the company at which he works. That’s the case with Mr. Rubino, who was nominated by Wayne Wallace of Mutual Capital Partners, an investor in OrthoHelix. OrthoHelix makes highly specialized implants and instruments that are used in reconstructive surgery on the hands and feet. “The company had a great product but little in the way of procedures and controls,” the nomination said. “From the date Cameron started all of that began to change and thank the heavens it did because with Cameron’s help the company started a period of record growth, growing monthly revenue from $200,000 to $2,000,000 per month. During Cameron’s tenure with OSDI annual revenues have increased in excess 2,567%.” It should come as no surprise that Mr. Rubino knows how to keep an investor happy. After all, before joining OrthoHelix in 2007 he himself was working the investor angle, as CFO of the Cleveland-based international investment firm Crystal Ventures. At OrthoHelix, though, he’s taken on a whole new set of challenges
and succeeded in new ways. He has led the company through stock offerings and raised other equity investments, totaling $30 million, to fuel the company’s growth. On top of that, he’s secured debt, including a $2 million term loan and a $2.5 million line of credit, as well — and has even written two Third Frontier grant applications netting the company $1 million each. “When Cameron joined, OSDI was a true startup with just a couple of employees,” the nomination said. “It was multiple years before Cameron even had a payables/receivables clerk.” Mr. Rubino proves that it’s often the job of a CFO not just to manage money, but to help make it — and he works closely with the company’s CEO, its board and even its sales and product development teams to set and execute financial strategy. At home, he and his wife are expecting their third child. He is an advisory board member of the George W. Daverio School of Accountancy at the University of Akron. “In my position, I meet and know many CFOs,” Mr. Wallace said in nominating Mr. Rubino. “If you guys know of any that has this type of track record I would love to meet them. We have few real early stage successes in Northeast Ohio and Cameron is a major part of one!”
CRAINâ€™S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Majestic Steel USA Inc. â—† Pepper Pike
Sterling Jewelers Inc. â—† Akron
usan Suvakâ€™s title at Majestic Steel USA Inc., one of the leading steel service centers in the country according to American Metal Market newspaper, is CFO. But her responsibilities go well beyond the companyâ€™s financial well-being. The 13-year company veteranâ€™s purview includes human resources, in-house legal counsel, office administration and the companyâ€™s 401(k) plan. She also guides Majesticâ€™s philanthropic activities, and sheâ€™s played a significant role in the certification of the companyâ€™s quality management standards. â€œSusan brings an invaluable balance between the realities of the marketplace and the companyâ€™s strong desire for growth,â€? said the nomination. â€œSusanâ€™s tactical- and strategic-thinking skills allow Majestic Steel to make prudent business decisions which impact todayâ€™s challenges, while continuing to build the companyâ€™s future growth capabilities.â€? Ms. Suvak also helped expand Majesticâ€™s executive team of two to a management structure that has allowed the company to handle its growth, and she was involved in hiring a chief information officer, a chief marketing officer, directors of marketing, sales and enterprise risk management, controller and inhouse legal counsel. The graduate of Ohio State
Universityâ€™s Max M. Fisher College of Business joined Majestic Steel in 1998 and become CFO in 2006 after spending nearly a decade as an accounting manager at a hospital and credit union. While doing the typical, such as negotiating a new longterm lending arrangement, Ms. Suvak has been cited for the development of the companyâ€™s philanthropy committee, establishing relationships with the Hunger Network of Greater Cleveland, the Achievement Centers for Children and its Camp Cheerful, the U.S. Marine Corp.â€™s â€œToys for Totsâ€? program and with the charitable activities of the regionâ€™s professional sports teams. She also has been involved in building sales relationships with customers and in spreading accountability for customer service throughout the company. â€œThroughout her career at Majestic Steel, Susan has led the financial area and company as a whole through myriad market cycles and fluctuations, where timely and prudent purchasing and selling decisions are of utmost importance to the organizationâ€™s financial health,â€? the nomination said. â€œOnce again, Susanâ€™s sound judgment, fact-based approach and ability to stay composed in pressure-packed situations allows for prudent decision-making relative to success-critical issues.â€?
ike a growing number of CFOs, Robert Trabucco of Sterling Jewelers Inc. is more than a number cruncher, as his additional title, executive vice president suggests. â€œBobâ€™s role is more of a strategic partner and adviser to Sterlingâ€™s CEO and COO,â€? said the nomination. â€œFor example, Bob, along with our senior management team, are the critical authors and contributors to our five-year strategic vision.â€? Sterling Jewelers is the U.S. operating company of Bermudabased Signet Jewelers Ltd. It manages more than 1,300 jewelry stores, many under the familiar Kay Jewelers, Jared the Galleria of Jewelry and JB Robinson Jewelers marquees. On the financial side, Mr. Trabuccoâ€™s domain includes capital planning, finance and treasury, taxes, legal, compliance, loss prevention, risk management and credit operations. In addition, his team creates and updates sales plans and has kept a close eye on expenses. The company
estimates financial restructuring is reducing expenses by over $100 million a year. The nomination also praised Mr. Trabucco for a key role in the company out-performing many companies in other retail sectors as well as out-performing its peers in the specialty jewelry business. It also attributes to him the success of the firmâ€™s in-house credit program, which handles 54.2% of store sales in the face of competition from ubiquitous international credit card brands. Mr. Trabucco also gets credit for agreements with the chainâ€™s name jewelry brands including Jane Seymourâ€™s Open Hearts line and Leo Schachterâ€™s Leo Diamonds. Before joining Sterling in 2003 Mr. Trabucco served as a retail consultant for several years after serving as CFO and then COO of NordicTrack, a Logan, Utah, fitness products retailer. He has a masterâ€™s degree in economics from Boston College and undergraduate degrees from Babson College and the University of Massachusetts.
JUDGEâ€™S PROFILE Michael J. Oâ€™Connor Financial adviser â—† Morgan Stanley Smith Barney Michael J. Oâ€™Connor has had a long career in the finance and treasury field at public firms such as Lincoln Electric Holdings Inc. and Cedar Fair LP. Prior to joining Morgan Stanley Smith Barneyâ€™s Wealth Management division in 2009, Mr. Oâ€™Connor served as director in the investment banking group at Union Partners LLC. Among other activities, Mr. Oâ€™Connor serves as a board member for Financial Executives International, and he was the president of Financial Executives International when the Crainâ€™s Cleveland Business CFO of the Year program was founded. Mr. Oâ€™Connor and his wife live in Moreland Hills along with two sons, who are away attending college.
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CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
2011 CFO OF THE YEAR NOMINEES
AND THE PERFECT FIT!
Dots is proud to congratulate its Chief Financial Ofﬁcer, Elaine Kapusta, and all the ﬁnalists on their nominations for the 2011 CFO of the Year Award! Elaine’s leadership and dedication has helped guide Dots in becoming a vibrant and growing force in the women’s fashion industry. Thank you, Elaine! We admire you for your passion and your wealth of contributions!
Other 2011 nominees for CFO of the year are: ■ Richard Boyson, Therapy Partners ■ Randy Carver, Carver Financial Services Inc. ■ Joel C. Domino, Kent Displays Inc. ■ William E. Goodill, Western Reserve Partners LLC ■ Leslie F. Graf, Convention & Visitors Bureau of Greater Cleveland Inc. (Positively Cleveland) ■ Arthur B. Hill, Salvation Army ■ Jeff Hrehocik, Bearing Technologies Ltd. ■ Michael R. Jeziorski, Delta Systems Inc. ■ Steve Jones, Hiram College ■ Joseph Kohut, Max-Trac Tire Co., subsidiary of Cooper Tire & Rubber Co. ■ Michael E. Kovack, Medina County ■ Thomas Kramer, Dar-Tech Inc. ■ Janice Matteucci, Conservancy
for Cuyahoga Valley National Park ■ James McMahon, Saint Martin de Porres High School ■ David Pincura, SportsTime Ohio ■ Thomas G. Scharf, Walthall, Drake & Wallace LLP ■ Kathleen M. Shields, Eliza Jennings Senior Care Network ■ Mark Small, Cleveland Construction Inc. ■ Sean Stack, Aleris ■ Bradford J. Welch, Godfrey & Wing Inc.
SS&G congratulates our clients, friends and all those honored … Elizabeth A. Donaldson, De Nora Tech, Inc.
Michael E. Kovack, Medina County
William E. Goodill, Western Reserve Partners LLC
Barry Reis, Jewish Federation of Cleveland
Dave Hamrick, InfoCision Management Corporation
Cameron C. Rubino, OrthoHelix Surgical Designs, Inc.
Richard “Duke” Jankura, JumpStart Inc.
Susan Suvak, Majestic Steel USA, Inc.
Mike Jeziorski, CPA, Delta Systems, Inc.
Bradford J. Welch, Godfrey & Wing, Inc.
Elaine Kapusta, Dots, LLC
Timothy K. Pistell Retired executive vice president, finance and administration and CFO ◆ Parker Hannifin Corp. Timothy K. Pistell retired from Parker Hannifin Corp in March 2011. He had been with Parker since 1969, joining the company as a corporate accounting trainee, and he had served in various financial management posts within Parker. Previously, he was vice president, finance and administration and CFO. In addition to other positions, he served as vice president, treasurer of Parker with responsibility over all treasury functions and investor relations. Mr. Pistell earned his bachelor’s degree from Miami University and his master’s degree from Baldwin-Wallace College. Among his involvements, Mr. Pistell
is on the board of directors for Ferro Corp., and he is a member of the Association for Financial Professionals and The Financial Executives Institute. He serves on the executive boards of the Northeast Ohio Buckeye Chapter of the Multiple Sclerosis Society and the Great Lakes Theater Festival, and in September 2007, he was appointed to the board of trustees of the Playhouse Square Foundation. Mr. Pistell received Crain’s Cleveland Business CFO of the Year honors in 2008.
Stephen J. Smith
Discover what makes us different.
CFO ◆ American Greetings Corp. Stephen J. Smith has been senior vice president and CFO of American Greetings Corp. since 2006. He oversees all aspects of American Greetings’ financial activities, including accounting, audit, financial planning and reporting, retailer contract management, retailer financial services, risk management, scanbased trading, shared services, tax and treasury operations. Prior to this role, Mr. Smith was
vice president of both treasury and investor relations, a position he held from 2003 until 2006. He received his bachelor’s degree from the University of Notre Dame and his master’s degree from the University of Texas at Austin. He received Crain’s Cleveland Business CFO of the Year honors in 2009.
CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
2010 CFO OF THE YEAR AWARDS Scenes from last year’s reception, held in October at LaCentre Conference and Banquet Facility in Westlake.
ABOVE: The 2010 winners gather on stage after the awards presentation. LEFT: Rachel Stallard, nominee Nick Stallard, Maria Stallard and Don Stallard of The Reserves Network.
JASON MILLER PHOTOS
ABOVE: Brian Kenyon, of The Rock and Roll Hall of Fame and Museum Inc. and a winner in the nonprofit category, with his wife, Lori Kenyon. BELOW: Jessica Shuleva of Saint Martin de Porres High School and Jeff Walters of event sponsor CBiz.
James Abel, most recently CFO of Lamson & Sessions, was honored with the lifetime achievement award.
x x x x x
CRAINâ€™S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
LARGEST COLLEGES AND UNIVERSITIES RANKED BY FALL 2011 FULL-TIME EQUIVALENT ENROLLMENT
Name of college or university Address Rank Phone/Web site
Full-time equivalent enrollment Fall 2011
Student/ faculty ratio
Annual tuition Room & board
% of enrollment undergraduate graduate
Type of Operating budget institution (millions) Affiliation Year founded
Endowment ($ millions)
Kent State University P.O. Box 5190, Kent 44242 (330) 672-3000/www.kent.edu
4 year public
Lester A. Lefton
University of Akron 302 Buchtel Common, Akron 44325 (330) 972-7111/www.uakron.edu
4 year public
Luis M. Proenza
Cuyahoga Community College(1) 700 Carnegie Ave., Cleveland 44115 (800) 954-8742/www.tri-c.edu
2 year public
Jerry Sue Thornton
Youngstown State University One University Plaza, Youngstown 44555 (330) 941-3000/www.ysu.edu
4 year public
Cynthia E. Anderson
Cleveland State University 2121 Euclid Ave., Cleveland 44115 (216) 687-2000/www.csuohio.edu
4 year public
Ronald M. Berkman
Case Western Reserve University 10900 Euclid Ave., Cleveland 44106 (216) 368-2000/www.case.edu
4 year private
Barbara R. Snyder
Lorain County Community College 1005 N. Abbe Road, Elyria 44035 (800) 995-5222/www.lorainccc.edu
2 year public
University of Phoenix, Cleveland Campus 5005 Rockside Road, Suite 130, Independence 44131 (216) 447-8807/www.phoenix.edu/cleveland
4 year private
Lakeland Community College 7700 Clocktower Drive, Kirtland 44094 (440) 525-7000/www.lakelandcc.edu
2 year public
Morris W. Beverage Jr.
Stark State College 6200 Frank Ave. NW, Canton 44720 (330) 494-6170/www.starkstate.edu
2 year public
Ashland University 401 College Ave., Ashland 44805 (419) 289-4142/www.ashland.edu
4 year private
Baldwin-Wallace College 275 Eastland Road, Berea 44017 (440) 826-2900/www.bw.edu
4 year private
Richard W Durst
Roy A. Church
FIND OUT WHY YOU DESERVE PLANTE & MORAN for your accounting, tax, and business consulting needs. Visit yes.plantemoran.com Dan Hursh, Partner, 216.274.6519
John Carroll University 20700 North Park Blvd., University Heights 44118 (216) 397-1886/www.jcu.edu
4 year private
Rev. Robert L. Niehoff, S.J.
Oberlin College 101 N. Professor St., Oberlin 44074 (440) 775-8400/www.oberlin.edu
4 year private
Walsh University 2020 E. Maple St. NW, North Canton 44720 (330) 490-7090/www.walsh.edu
4 year private
University of Mount Union 1972 Clark Ave., Alliance 44601 (330) 821-5320/www.mountunion.edu
4 year private
Malone University 2600 Cleveland Ave. NW, Canton 44709-3897 (330) 471-8100/www.malone.edu
4 year private
Will J. Friesen
The College of Wooster 1189 Beall Ave., Wooster 44691 (330) 263-2000/www.wooster.edu
4 year private
Grant H. Cornwell
Notre Dame College 4545 College Road, South Euclid 44121 (216) 381-1680/http://notredamecollege.edu
4 year private
Andrew P. Roth
Ohio Technical College 1324 E. 51st St., Cleveland 44103 (216) 881-1700/www.ohiotech.edu
2 year private
Hiram College(3) P.O. Box 67, Hiram 44234 (330) 569-3211/www.hiram.edu
4 year private
Thomas V. Chema
Lake Erie College 391 W. Washington St., Painesville 44077 (440) 296-1856/www.lec.edu
4 year private
Michael T. Victor
Remington College-Cleveland Campus 26350 Brookpark Road, North Olmsted 44070 (440) 777-2560/www.remingtoncollege.edu
2 year private
Gary A. Azotea Patrick Resetar
Ursuline College 2550 Lander Road, Pepper Pike 44124 (440) 449-4200/www.ursuline.edu
4 year private
Diana Stano, O.S.U.
Northeast Ohio Medical University 4209 State Route 44, Rootstown 44272 (330) 325-2511/www.neomed.edu
4 year public
Jay Alan Gershen
The Cleveland Institute of Art 11141 East Blvd., Cleveland 44106 (216) 421-7000/www.cia.edu
4 year private
Grafton J. Nunes
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. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Annual tuition is for a full-time student, (30 credit hours). (2) Annual tuition is $17,520 to $18,200. (3) Tuition number is for the incoming class, Fall 2011. Tuition for students enrolling with Tuition Guarantee remains the same through the student's fourth year. (4) M.D. tuition is $33,003. PharmD tuition is $19,947.
RESEARCHED BY Deborah W. Hillyer
OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
NASA: Manufacturers show interest continued from PAGE 1
The technologies are far ranging and include things like a special copper alloy that NASA developed for rocket nozzles. Those nozzles have to withstand tremendous temperatures and other harsh environmental conditions. As it turns out, they also make great welding electrodes that can be used on robotic welders — electrodes that last far longer than those available using other metals, NASA says. “If you have a bunch of welding robots, and you don’t have to stop everything to change electrodes as often as before, that’s a big deal,” Dr. Bartolotta said. “That’s one of the things that’s going to be introduced at the show.”
What color’s your technology? Also set to be unveiled is the material NASA developed to keep jet engine blades from penetrating the bodies of jet engines and plane fuselages. The material, a type of foam sandwiched between special layers of something similar to carbon fiber, is super tough, but it’s also light. It might even serve as a new, lighter skin for NASA’s next rocket, though it could be useful in making lighter and stronger car bodies, Dr. Bartolotta said. Other technologies include sensors and controls that could help hybrid or electric cars become more efficient; solid oxide fuel cells to power vehicles; new materials that can be used to contain pressurized natural gas; and green polymers that put out only water and not noxious gases when they are used. It’s not as though NASA or even NASA Glenn in Cleveland has avoided commercializing technology in the past. But Dr. Bartolotta said much of the agency’s past attempts at commercialization have involved working with the aerospace industry. Now, he said, the
agency is branching out to help a broader swath of U.S. manufacturing — and potentially help NASA pay for itself via licensing agreements, development partnerships or other projects where industry pays to use or even further develop NASA’s inventions. “NASA is open for business. We’re opening our safe, so to speak,” Dr. Bartolotta said. In its last fiscal year that ended Sept. 30, 2011, NASA Glenn brought in $41.8 million in new business from its technology transfer efforts, said agency spokeswoman Katherine Martin. About $17 million of that involved letting companies use NASA’s labs and facilities, for things like wind-tunnel testing of wind-energy equipment; and the remaining $24.8 million came from licensing and collaborative research efforts with industry, like what it hopes to conduct with automakers, she said. Dr. Bartolotta said NASA is trying to be easier to work with than before, and described the current effort as a “product pull,” rather than a technology push. What’s the difference? “A technology push is when I say, ‘I have this new material for you,’ and then you say, ‘I like it, but I need it in green.’ Then I say, ‘I have it in yellow, here, take it’ — that’s the way technology has been pushed in the past,” Dr. Bartolotta said. Now, he said, NASA is seeking not only to introduce its technologies, but to work with industry to advance and amend them to suit business needs. In other words, he said, if you need it in green, NASA will try to make it that color.
Eager to launch The manufacturing sector seems interested too, and the Oct. 27 event is being co-sponsored by the Center for Automotive Research at Ohio State University and the Clevelandbased manufacturing advocacy and
consulting group Magnet. “I think it’s going to be very good — NASA’s got a lot of great technology to share,” said Ed Nolan, vice president of product development and engineering at Magnet and a member of the focus groups that helped select the technologies NASA will present. Mr. Nolan said today’s auto industry faces many of the same challenges confronted by aerospace companies — how to make vehicles lighter, more efficient, more powerful and easier or less costly to manufacture. It makes sense to turn to NASA for ideas on how to do that, he said, and he’s glad to see NASA embrace the opportunity. “I think it’s a different NASA than we’ve seen in the past — more open and wanting to share their technologies with the industrial community,” Mr. Nolan said. Even some in the automotive sector who had not yet heard of the event said they thought it was a good idea that sparked their interest. “I hadn’t received an invite for this event yet, (but it) sounds pretty interesting,” said Bill Adler, president of Cleveland-based Stripmatic Products, a maker of tubular products used in suspension systems and other automotive components. U.S. companies in the automotive supply chain constantly are looking for ways to be more competitive, including by looking out for new technologies and materials, Mr. Adler said. The show is not open to everyone, though. NASA, Magnet and other show sponsors invited 600 companies from around the nation; about 110 already have signed up, Mr. Nolan said. Others can attend, by contacting Magnet, he said, but only if they are representatives of manufacturers in the auto industry. ■
Boost: Operator eyes 20 more continued from PAGE 3
process is a nice validation of the work we’re doing. Those are critical dollars that enable us to replicate the successful school model and expand the Breakthrough network.” Breakthrough was pitted against applications from 34 other charter groups around the country. Breakthrough’s leaders attribute its academic results as the key factor in securing the funding. U.S. Department of Education Secretary Arne Duncan said in a statement that grantees serve “a student population that is majority low-income and virtually all exceed the average academic performance for all students in their state.” Breakthrough Schools doesn’t receive any funding from local governments for its efforts, but it does receive state and federal dollars, though significantly less than the Cleveland Metropolitan School District. Still, the group’s leaders maintain its students outperform students in Ohio’s urban and suburban schools. According to data from Breakthrough, its students, who are 95% African American and 80% from low-income families, outperformed other Ohio students on every test at every grade level last year. “We’re gaining some notoriety
and publicity, but it’s because of what’s happening in the schools — the job the teachers are doing and our kids work hard to get good academic results,” Mr. Rosskamm said. Breakthrough’s goal is to have 20 operational charter schools in its network by 2020, serving more than 7,000 students in the area, according to John Zitzner, president of Friends of Breakthrough, the fundraising and advocacy arm of the charter school network. The network now serves about 1,300 children. Mr. Zitzner said Breakthrough plans to raise as much as $4 million over its next fiscal year, which ends in June, to support the organization’s rapid growth strategy. Last year, the organization brought in more than $2 million with the help of major gifts from the Cleveland-based iron ore producer Cliffs Natural Resources and the Wickliffe-based specialty chemicals company Lubrizol Corp. Mr. Zitzner said the organization continues to talk with area companies, foundations and individuals about financially backing its efforts. “It’s a very significant grant that we deserve, and it’ll help us toward that $4 million, but by no means does it take us where we need to go,” he said. “It just puts us in right direction.” ■
HIGHER EDUCATION Pam Lebold, Director
ands down, our higher education professionals are among the best in the business. But that doesn’t quite cut it. The way we see it, it’s not enough that we’re top-notch experts in accounting – we need to be experts at what you do too. That’s why we make it our business to know your business, inside and out. Maloney + Novotny has extensive experience working with colleges and universities providing audit, accounting, tax and consulting services.
■ Cleveland 216.363.0100 ■ Canton 330.966.9400 ■ Elyria 440.323.3200 + Business Advisors and Certified Public Accountants
CRAIN’S CLEVELAND BUSINESS
OCTOBER 17 - 23, 2011
Athersys: Technology has potential continued from PAGE 3
For instance, Athersys in December 2009 signed a deal with Pfizer Inc. that gave the pharmaceutical giant rights to sell MultiStem to treat patients with inflammatory bowel disease. In exchange, Pfizer agreed to pay Athersys $6 million up front and another $105 million as the company hits certain goals. Pfizer also agreed to reimburse the company for clinical trial costs and give the company royalties from product sales. Athersys, then, could strike deals with other companies interested in acquiring the rights to sell MultiStem to treat patients with other conditions. In October, Athersys began enrolling patients in phase two clinical trials intended to test MultiStem’s effectiveness in treating stroke patients, but it has yet to strike a deal with a partner to commercialize the technology for that condition. Stroke represents “a huge market opportunity” for MultiStem, Ms. Migliore said. Early data suggest the therapy could help stroke patients recover even if they receive treatment a week after they have the stroke. Today, patients have no good
options if they aren’t treated within three hours, she said.
It’s happened elsewhere Other big companies have shown a willingness to invest in adult stem cell technologies, Dr. Van Bokkelen said. He mentioned how drug maker Cephalon Inc. of Frazer, Pa., paid Mesoblast Ltd. of Australia $130 million — an amount that could rise to $1.7 billion as Mesoblast hits certain goals — to receive global rights to market its adult stem cell technology as a treatment for cardiovascular and central nervous system conditions. “There are companies out there who recognize that (adult stem cell therapies) could be a game changer,” Dr. Van Bokkelen said. Cephalon also paid $220 million to buy a 20% stake in Mesoblast. So could a large equity investment or an outright acquisition be in Athersys’ future? Dr. Van Bokkelen said it wouldn’t surprise him if a company showed interest in acquiring Athersys, but he said he doesn’t “spend a lot of time thinking about that as a possibility for the company,” he said. If Athersys can produce solid results in a phase two clinical trial,
its technology will become more appealing to strategic partners and other investors — but it likely won’t complete a phase two trial until late next year or early 2013, Dr. Van Bokkelen said. The company might have to raise more cash or cut expenses before then, though: Unless it makes significant changes, the company’s cash reserves will last “well into the second half of 2012,” said Athersys president William “B.J.” Lehmann. Both Ms. Migliore and Steve Brozak, president of San Diego-based WBB Securities LLC, said Athersys’ stock suffered because investors have been avoiding small companies with uncertain prospects. In selling Athersys stock, investors made a big mistake in Mr. Brozak’s eyes. He said company executives know the science behind their technology better than their competitors and that they “basically make their dollars go longer and further than anybody else on the planet.” Plus, the technology is extremely promising, he said, which might help Athersys deal with its decreased stock price. “If you’ve got something and you need money, there’s room to negotiate,” he said. ■
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Gil Van Bokkelen, CEO of Athersys, says in regard to a potential acquisition, “There are companies out there who recognize that (adult stem cell therapies) could be a game changer.”
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OCTOBER 17 - 23, 2011
CRAIN’S CLEVELAND BUSINESS
Math: University may apply concept to other areas continued from PAGE 1
traditional lecture course; consider this math boot camp in a computer lab on steroids (and decorated with couches resembling addition signs). Based on diagnostic testing, freshmen who come to Kent State prepared for college-level mathematics can bypass the emporium, but this fall more than 1,400 students are enrolled in the program. “In order to pass the course and succeed in the course, the student has to do the mathematics. They have to sit there and work problem after problem,” Mr. Laux said. “There is no more passive learning or even an attempt at passive learning.” The computer software is comparable to a video game of sorts. Students, for one, are given individual-
ized lesson plans and must master each task at their own pace before moving on to the next. Also, lastminute cramming won’t do, as steady progress is required to get through the class. The university this fall invested about $1.2 million in the facility, now dubbed the “Math Emporium,” to combat a 30% to 35% rate of students receiving an “F” or “D” or withdrawing from the university’s remedial algebra courses — a problem all too familiar for colleges and universities throughout the country. Students aren’t coming to college with the proper background in mathematics, which often leads to poor academic performances and perhaps a decision to leave the university. That hurts the university’s
Issue 2: Ads not necessarily intended to inform voters continued from PAGE 1
campaigns. “Voters who don’t pay close attention to what’s been going on will be very hard-pressed to identify what the key issues are.” The University of Akron’s Stephen Brooks said that informing citizens about the reasons they should be for or against the issue is not a goal of either Issue 2 campaign, or most contemporary election advertising. “These days, most political campaign ads are not really focused on changing minds or debating the issue,” said Dr. Brooks, associate director of the Ray C. Bliss Institute of Applied Politics. “They are used as motivational tools” to get as many potential voters on one side of the issue or the other out to vote. Dr. Brooks said it appears to him that both sides believe that most potential voters already have made up their minds on this issue. So given that, especially for the proIssue 2 side that polls say is down by about 10 percentage points, the goal of the Issue 2 advertising is to drive more voters who have already made up their minds to the polls. “You might see a more sophisticated discussion of the issue in a close race where you have a large number of undecided or persuadable voters,” he said. The clips of firefighters rescuing a child from a burning building worked for both sides because the rescue strikes an emotional chord that the advertising on both sides is trying to reach. Many television stations have pulled the ad, but Building a Better Ohio continued to use the video in emails.
Complex issue, simple ads SB 5 restricts the collective bargaining rights of public employees, public school teachers and state college faculty and it prohibits them from striking. It also requires that merit be a factor in setting teacher salaries and ends the practice of basing layoffs strictly on seniority. At a 90-minute debate among labor lawyers at Cleveland State University’s College of Law last Wednesday, Oct. 12, local attorneys Craig Brown, who represents management, and Susannah Muskovitz, who represents unions at the bargaining table, delved more
deeply into the nuances of the issue, and spoke more frankly, than television advertising could ever do. Mr. Brown conceded that SB 5 “eviscerates collective bargaining” in the public sector, but argued that public sector labor relations have become dysfunctional because of the ability of union campaign contributions to sway public officials into labor agreements more generous to employees. Ms. Muskovitz agreed with Mr. Brown on at least one point, saying SB 5 “destroys collective bargaining.” But she pointed out to an audience that included lawyers and Cleveland State faculty members and students that a provision that would take away tenure from some university professors at schools where the faculty is unionized, will make those colleges less attractive places to teach. “If Ohio wants to attract the best and the brightest faculty, having no tenure will kill that,” she said. Most state colleges with unionized faculty are in the northern part of the state. Faculty at Miami, Ohio and Ohio State universities are not affiliated with a union. Those distinctions, which are important in assessing whether the legislation deserves to survive, are not being discussed in television advertising, which has a much larger reach. That’s because, Dr. Brooks said, contemporary campaign advertising is geared to promoting candidates rather than issues. “Issue voting is much more complex than candidate voting,” he said. “In a candidate campaign, what you’re talking about is the future, so you talk about trust and that sort of thing. “Issue campaigns, even a school board tax levy, it’s not just about ‘We’re going to raise your taxes’ but it’s what happens to the schools, the price of your home. It’s hard to get that stuff into ads so you fall back on sound bites and emotions.” So, he said, the campaign supporting SB 5 is trying to say to voters, “This is a way to take care of (the financial problems facing) state government and trust us that this will take care of it.” The campaign to repeal is arguing that, “This legislation is disrespectful of you and your kids and it will make life miserable for them, but let’s not talk about how it will do that,” he said. ■
retention rate and ultimately its finances. “Kids with low GPAs typically don’t return,” Kent State provost Robert Frank said. “This is fundamental to graduation and retention rates.”
Robot U.? Kent State president Lester Lefton said the math emporium is designed to pick up the slack for the nation’s lagging K-12 system, which he believes is churning graduates who aren’t ready for a college workload. “It’s big, it’s bold, it’s innovative,” Dr. Lefton said about the emporium concept. “This is the kind of thing other universities in Ohio might want to do.” Despite some initial concerns, parents need not worry their children are being educated by machines, Kent State officials said. The lab is staffed by 10 teaching assistants and faculty at any time throughout the day. Before starting the course, students are given diagnostic tests to place them at the appropriate level of coursework. If students need help beyond the digital tools offered through the software, faculty members are willing to work one-on-one
with students. “We’re teaching our students,” Mr. Laux said. “We’re incorporating software just like many classrooms incorporate textbooks, but the software is much more responsive.” Andrew Tonge, chairman of the Department of Mathematical Sciences at Kent State, said the early data suggest students are learning in the emporium model and progressing through the software at a steady pace. Of the 1,400 students enrolled in the emporium this semester, about 200 have finished the coursework. Mr. Laux said while the early results are encouraging, he’s interested to see how well the students retain the material as they advance in their studies. “I’m quite interested to what happens when they step outside the emporium model and take their first college-level course, he said. “To tell you the truth, only time will tell.”
Adding to the equation The math emporium concept was first developed in 1997 at Virginia Tech University. While university officials at Virginia Tech say they don’t have any concrete data to share that suggest the model is
working, they’re confident students are learning the material. “All aspects of our instructional model, including the online text, on-demand help, and unlimited practice problems, emphasize that students learn math by doing math,” said Terri Bourdon, manager of Virginia Tech’s math emporium in an email. “The large numbers of students who use our facility to work on their math courses without being required to do so provides substantial evidence of our success.” Kent State officials maintain the investment will save the university and students money in the long haul, and it would only take the university two or three years to recoup the $1 million price tag of the facilities. In the meantime, the university is considering using the emporium model in other areas of study, with foreign languages being a top contender. But for Mr. Laux, witnessing a sea of students learning is a sight to behold. “Every time I walk in, there are 240 students learning and talking mathematics,” he said. “There’s no way out. I had a big smile on my face on Day One.” ■
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Give Lubrizol a gold star
The big story: Case Western Reserve Univer-
■ They’re only formulating, making and mixing a bunch of chemicals. What could go wrong? Plenty, if you’re not careful or professional. But the point is, nothing of consequence has gone wrong at the Wickliffe plant of Lubrizol Corp., a company that makes oil additives, specialty coatings and other advanced chemicals. That’s one reason the plant recently was recertified as a Voluntary Protection Program Star site by the U.S. Occupational Safety and Health Administration. In making the announcement, OSHA noted both Lubrizol’s ability to respond to emergencies and hazard materials incidences, an excellent incident reporting system and even its “exceptional recycling and waste stream management.” Better yet, as Lubrizol itself reports, the site has 90% fewer accidents than the average for plants in its industry. — Dan Shingler
sity publicly launched a $1 billion fundraising campaign that so far has brought in about $660 million — $50 million of which is anchored by a recent pledge from the foundation of the late industrialist Albert J. Weatherhead III. The university has been raising money quietly for the campaign for the last four years. It plans to use the public portion of the campaign over the next five years to reach a larger pool of donors. Fundraising priorities will be driven by the school’s 2008 strategic plan, which is focused on strengthening the base of scholarships, increasing the number of endowed professorships, expanding academic programs and building new facilities.
An interesting turn: The Cleveland Indians said they’re working with Cleveland State University’s Fenn College of Engineering to install a 15-foot-tall wind turbine at Progressive Field before next season. Grants from the U.S. Department of Energy and the state of Ohio will cover the cost of the turbine and installation. Indians spokesman Curtis Danburg said the project has been in the works for a couple years. “It’s another opportunity to partner with a Cleveland institution,” Mr. Danburg said. “We’ve been an industry leader in the (sustainability) field, and this is an extension of that.”
Best Buy buy: Monmouth Real Estate Investment Corp. of Freehold, N.J., acquired the justcompleted Best Buy warehouse in Streetsboro’s Interstate Commerce Center industrial park from Geis Development Co. for $19.6 million. Best Buy Warehousing Logistics Inc. has leased the newly constructed building through Aug. 31, 2021, Monmouth said. Best Buy moved 40 employees to Streetsboro this fall as it consolidated operations from three buildings in Glenwillow to a single property.
Statewide coverage: Cleveland law firm Calfee, Halter & Griswold LLP said it’s opening a Cincinnati office led by two prominent political figures in the state — former Cincinnati Mayor Charlie Luken and former state Sen. Richard Finan. The new location gives Calfee a presence in Ohio’s three largest cities, as it already has offices in Cleveland and Columbus. Both attorneys had been based in Calfee’s Columbus office and will continue to serve their clients there and elsewhere while working out of the Cincinnati office. Wired up:
B&B Electronics of Ottawa, Ill., a maker of rugged wireless connectivity and communication products, bought Quatech Inc. of Hudson. In August, DPAC Technologies Corp., the owner of Quatech, said B&B Electronics agreed to acquire substantially all the assets of Quatech for $10.5 million. Sean Harrigan, CEO of B&B Electronics, said Quatech’s products “enable reliable machine-to-machine communications” via secure wireless or traditional wired networks, with industrial-grade embedded radios, modules, boards, and external device servers and bridges.
A new spark: Blue Spark Technologies of Westlake, a maker of thin, flexible disposable printed batteries, said it has named John Gannon as president and CEO, effective immediately. The company’s former CEO, Norbert Dawalibi, will remain with the company in an active role as the new executive chairman of the board. Mr. Dawalibi had been in the job only since last April, when he replaced Gary Johnson as chief executive.
Sun shines on Fla. office of Weltman Weinberg ■ A year ago, there were four. Now, Weltman, Weinberg & Reis Co. LPA’s Florida staff numbers more than 60. As a result, the Cleveland-based creditors’ rights law firm moved its Fort Lauderdale office in early October from a 2,700-squarefoot location to one next door measuring
more than 12,000 square feet. National clients are hiring Weltman Weinberg to do more of their work and are driving the growth, said Peter Winzig, director of marketing and corporate development. Once the firm’s new office was operational, it had an immediate influx of work and was able to add 13 attorneys, he said. The Florida office’s initial focus was on real estate default — opportune, considering that Florida is one of the country’s busiest states in terms of delinquent real estate loans. The office now has added bankruptcy, litigation and defense teams, and plans to add staff to do collections work, Mr. Winzig said. Alan Weinberg, managing partner of the firm, said he’s proud that it continues to create opportunities for people at a time when there’s much talk about the need for job creation. In all, Weltman Weinberg operates 10 offices in five states. — Michelle Park
Putting its signature on a historic hotel ■ Signature Health, a mental health services provider in Willoughby, is expanding its operations in Ashtabula and taking over the
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com
Why did the chicken farmer cross the country?
COMPANY: Team Wendy, Cleveland PRODUCT: EPIC Air Combat Helmet Liner System The company, which makes protective equipment for the U.S. Army, the Marine Corps and law enforcement, says the EPIC Air system is the “next generation” of Team Wendy protective helmet liners, and it features several key design and technology improvements. The design “incorporates three main pads (front, rear and crown) for impact protection, an assortment of ergonomically designed comfort pads, and patent-pending air channeling technology to keep (users) cooler while maintaining maximum comfort and stability,” according to Team Wendy. The comfort pads and air channels “can be used in any configuration to customize the comfort and fit to each individual user,” the company says. EPIC Air comes in a variety of cuts and sizes to fit any style of ground combat helmet and is compatible with all styles of communication headsets. It uses Team Wendy’s patented Zorbium foam, the same material used in the standard issue pad sets for the Advanced Combat Helmet, Marine Lightweight Helmet and Enhanced Combat Helmet. For information, visit www.TeamWendy.com. Send information about new products to managing editor Scott Suttell at ssuttell@ crain.com.
historic Ashtabula Hotel on Main Avenue to serve as its new office space. Sandvick Architects in Cleveland, the firm that renovated the Old Arcade in downtown Cleveland, will draft the redesign of the structure, which has been vacant since 1989. The project is slated to cost $3.8 million. The hotel was added to the National Register of Historic Places in 1985. “This was very attractive for a few reasons,” said Jonathan Lee, Signature Health’s CEO. “In Ashtabula there is old building stock and not a lot of places to build new. It’s interesting to me that there’s also a chance to preserve something historic.” The construction project, which should be finished by fall 2012, will double Signature Health’s office space in Ashtabula to about 32,000 square feet. The expansion is expected to lead to 35 to 40 additional hires for Signature Health over the next two years, Mr. Lee said. The for-profit Signature Health has locations in Cuyahoga, Lake, Ashtabula and Geauga counties. Mr. Lee said the company, which employs more than 200, has been able to continue to expand its operations since its founding in 1993 by entering areas with low levels of uncompensated care. — Timothy Magaw
■ Ever thought about chucking the corporate career to do something you really love? (Of course you have; it’s that money thing that probably gets in the way.) If so, check out a CNNMoney.com video about Ami Gignac, who runs Breakneck Acres, a certified organic farm in Ravenna. Ms. Gignac, a former executive at a mining company in San Francisco, left the corporate career and now raises organic crops and chickens. According to the company’s informative Facebook page, its products are currently being sold on the farm and at the Haymaker Farmers’ Market in Kent. The video isn’t great on details, but it has some terrific images of a great idea by Ms. Gignac and her partner, Tim Fox. Instead of keeping chickens in a traditional coop, they bought and retrofitted an old school bus. Ms. Gignac says the bus offers twice the space at half the cost. Now that’s the kind of innovation any business — a big corporation or a small farm — can use.
There’s no business like snow business ■ Cleveland figured prominently in a story from TheAtlanticCities.com about how stadiums nationwide are being put to use outside their traditional seasons. Progressive Field’s “Snow Days” event was held up as a model for making use of a baseball stadium without a roof in the Midwest in mid-winter.
“When you have lemons, you make lemonade,” said Kurt Schloss, senior director of merchandising and licensing for the Cleveland Indians. “In our particular case, we wanted to embrace the cold, embrace Northeast Ohio, because that’s what it is. You can’t put up palm trees and hope for sand.” The team is augmenting Snow Days this year with an outdoor hockey game on Jan. 15 between Ohio State and Michigan. Organizers are expecting a sellout. “We’ve got an opportunity, given the proximity of the stadium in our downtown core, that we can build on this,” said Joe Marinucci, president of the Downtown Cleveland Alliance
Pop goes the sale, likely at a big price ■ There are some old-time Cleveland ties to a painting that’s expected to fetch $35 million when it’s auctioned off in New York. The Wall Street Journal reported that Courtney Ross, the New York widow of former Time Warner CEO Steve Ross, has enlisted Christie’s to auction off a Roy Lichtenstein painting for at least $35 million on Nov. 8. The couple paid $2 million for the 1961 painting 23 years ago. The painting, part of the pop art movement, is called “I Can See the Whole Room … and There’s Nobody in It!” Before Ms. Ross, the work was owned by Burton and Emily Tremaine. Mr. Tremaine, a Cleveland native who died in 1991 at age 89, was the son of a co-founder of Nela Park. He began his business career in his early 20s as president of the Superior Screw and Bolt Co. of Cleveland. The Tremaines’ collection included “Three Flags,” an early painting by Jasper Johns, as well as works by Pablo Picasso, Mark Rothko, Andy Warhol and others.