Crain's Cleveland Business

$1.50/MAY 10 - 16, 2010Vol. 31, No. 19

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Casino bill up against deadlineLawmakers grapple with key issues, assurelegislation will pass to advance development By JAY [email protected]

The Ohio Legislature has lessthan a month to pass a bill that willset oversight for the four casinosvoters approved last November, butbecause several key issues haven’tbeen resolved, a bill has not even

been introduced.State Rep. Kenny Yuko of Rich-

mond Heights, who is one of theDemocratic legislators drafting thecasino-enabling legislation, said hehopes to have a joint House-Senatebill ready for introduction when theGeneral Assembly reconvenes thisweek after an election hiatus.

move quickly once it is introduced.“They are getting very close,” she

said. “The effort has been to try to work with the (Democratic-controlled) House to get agreed-tolanguage, considering the short timeframe.”

Still, the legislation will sidestep thethorny issue of how to account for thenew money that will flow to cities andcounties from the casinos. Some mayors are concerned that the moneythe casinos bring in will offset state

“I didn’t realize how damnedcomplicated these things are,” Rep.Yuko said as he ticked off the issueshe has yet to resolve in the expectedbill. “We’ve been working on it sinceNovember.”

But, he added, “In six years in theLegislature, this is the first bill I’veworked on that I know is going topass.”

Maggie Ostrowski, a spokes-woman for Senate Republicans andstate Senate president Bill Harris,said she expected the legislation to See CASINO Page 25

Indians solicit plans from architectsBy JOEL [email protected]

Changes are afoot at Progressive Field, and not just inthe form of some early season callups from the minors.

The Indians soon will announce an agreement withan architect to make potentially significant changes tothe ballpark. The goal of the effort, according to Indiansvice president of public relations Bob DiBiasio, wouldbe to “reshape and revive this wonderful facility.”

“It is now time to look to the future to make sure Progressive Field continues to provide the total fan experience for decades tocome,” Mr. DiBiasio said.

What the changes will beremains to be seen, though itappears anything may go.The Indians in March invitedarchitects and engineers tosubmit makeover plans. Theselected group will work withthe team to conduct a facil-ity assessment review, Mr. DiBiasio said, then ultimatelydevelop a master redevelop-ment plan.

Doug Hoffman, a principalat the Cleveland office of architectural firm Weber Murphy Fox, said seven local outfits, including his, were invited to submit plansfor redevelopment. Other local firms invited wereBialosky & Partners Architecture; Hershman Architects;OSports Architecture (a division of Osborn Engineering);URS Cleveland; Vocon; and Westlake Reed Leskosky.Moody Nolan in Columbus and Kansas City-based Populous, formerly HOK Sport, which originally designed Jacobs Field in the early 1990s, also were invitedto submit plans.

Changes to ballparkappear on deck for Progressive Field

See INDIANS Page 21

See LOANS Page 11

INSIDES-W still cleans up

Sherwin-Williams continues topaint itself as a leader in the ultra-competitive paint and coatings market. For example, the companyhas developed a new coating thatmakes removing graffiti an easierchore. Read Dan Shingler’s storyon Page 3.

MARC GOLUB

FILE PHOTO/MARC GOLUB

Mark Munsell, president of Munsell Realty Advisors Inc., said he was approached by JPMorgan Chase & Co. to shed a $22.4 million loan thatthe New York bank held. Mr. Munsell then borrowed money through another lender to pay back JPMorgan, at a total of $14 million.

LOAN INTERESTS

CUT LOSSESBanks, real estate investors make

deals to reduce exposure, redeem value

By STAN [email protected]

Amid the darkest, dreariest businessenvironment that Mark Munsellhas weathered in 30 years of commercial real estate investing,

JPMorgan Chase & Co. of New York cameknocking.

All told, the bank that held the note on Mr. Munsell’s Commerce Park IV and Voffice buildings in Beachwood knockedthree times on his door.

The bank sought to shed the $22.4 million loan. What would Mr. Munsell’spartnership pay for it? Finally, they struck adeal: By getting a loan from another lenderthat Mr. Munsell declined to identify, hepaid off the loan for $14 million. A flick of JPMorgan’s pen cut $8.4 million from theproperty’s overhead.

“It was very advantageous for me and myinvestor group,” the president of MunsellRealty Advisors Inc. in Beachwood said,adding, “I’m hearing more and more ofthose kinds of stories.”

20100510-NEWS--1-NAT-CCI-CL_-- 5/7/2010 2:23 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MAY 10-16, 2010

REGULAR FEATURES

Classified .................26Editorial ...................10Going Places ............15List: Manufacturingcompanies ........22, 24

Tax Liens ..................14

COMING NEXT WEEK

We take a look at someof the financial trends and issues facing those workingin Northeast Ohio.

Finance section

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CORRECTIONA May 3, Page One story on the

failure last December of the formerAmTrust Bank mischaracterized the nature of a document that had beenprepared in response to a Nov. 4,2009, letter to the bank from the federal Office of Thrift Supervision. Theletter notified the bank’s board thatAmTrust was “significantly undercapital-ized” and had until the end of thatmonth to file a capital restoration planwith the regulator. According toChristopher Meyer, an attorney forSquire, Sanders & Dempsey who is representing AmTrust Bank’s formerparent, AmFin Financial Corp., in abankruptcy case, a draft of the docu-ment that was to be sent to the Officeof Thrift Supervision was not describedby him as a capital restoration plan, asstated in the story.

% change % changeFeb.-March last 12 months

SIGNS OF LIFEIn the Cleveland/Elyria/Mentor MSA, nonfarm payroll employment is up, joblessclaims are down and housing permits are on the rise; maybe this fledgling recovery is real after all. The state of Ohio each month issues what it calls a “Leading Indicator” report looking at key statistical measures. So far in 2010, the numbersare more positive, though there’s a long way to go to reach economic health:

Measure Feb. March

Nonagriculturalwage, salary employment(seasonally adj)

Avg. work weekin manufacturing

Unemploymentinsurance claims

Valuation of housing permits

989,000 1.01M 1.9% -0.8%

10,321 10,239 -0.8% -46.6

40.0 40.1 0.3 5.5

$21.6M $46.9M 117.6 108.0

SOURCE: OHIO DEPARTMENT OF JOB AND FAMILY SERVICES


MARC GOLUB PHOTOS

Perhaps the coolest new product in development at Sherwin-Williams’ Breen Technology Center in Cleveland is atransparent coating that makes graffiti easier to remove, as staff painter Mike Czyrba demonstrates.

MAY 10-16, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT

Questions about health care reform boost business for attorneys, consultantsComplex 2,400-page bill intimidating for companies, who are seeking out help

Even minus hub,Continental stillowes Hopkins

By SHANNON [email protected]

Consultants and attorneys acrossNortheast Ohio are seeing healthyincreases in business from companiesand individuals trying to make headsor tails out of the 2,400 pages of thenew federal health care bill.

Many professional advisory firmsare boosting their staffs to handlethe onslaught of inquiries broughton by the landmark legislation thatCongress passed and President

Barack Obama signed into law inMarch.

“People are starting to digest thebill and think about how to positionthemselves,” said Jeff Kapp, a partnerin the health care practice of Cleve-land law firm Jones Day. “They’rereading the tea leaves.”

Indeed, companies have a lot ofquestions for human resource consulting firm Oswald Cos., said

Bob Klonk, an executive vice presi-dent at Oswald. Hundreds of busi-ness people took part in a recentOswald-sponsored webinar seekinghelp in interpreting and under-standing various parts of the billand how it will affect them, Mr.Klonk said.

Specifically, businesses are eagerto learn more about provisions inthe reform bill such as dependent

coverage, preventive care, retireecare and small business tax credits,he said.

“Anytime there’s confusion,there’s anxiety,” Mr. Klonk said.“We’re trying to calm them down.”

Eric M. Simon, a partner in thehealth and life sciences practice ofCleveland law firm Taft Stettinius &Hollister LLP, said many firms aretrying to push information to their

clients through seminars and clientalerts.

“The health reform bill is so enor-mous that businesses don’t knowwhat it means for them,” he said.“We’re boiling it down into bite-sizepieces so people start to becomemore comfortable.”

Thomas Ferkovic, managing partnerat SS&G Health Care Services LLC inAkron, said his company is fieldingquestions about reform in generaland how it will change the way

See BOOST Page 8

PATENTLY UNIQUESherwin-Williams using innovation to take aim at improving customers’

efficiency while staying ahead in competitive paint, coatings market

By DAN [email protected]

Sherwin-Williams Co. officialsmight not be happy until thepaint applies itself and thencleans up afterward.

With about 30 new patents a yearcoming out of its Breen TechnologyCenter on the east bank of theCuyahoga River in downtown

Cleveland, the company increasinglyuses innovation to distinguish itselfin the ultra-competitive paint andcoatings market.

“This is where I come to see thefuture,” said Sherwin-Williams CEOChris Connor during a visit lastWednesday, May 5, to the tech center, where the company unveiledsome of its latest new products.

See UNIQUE Page 21

THE WEEK IN QUOTES“The less desirable theasset class, the betterthe terms. The bankswould rather workwith the borrower ora replacement ownerbefore getting theproperty back. Fore-closure is the lastthing on their list.”— Ryan Sommers, president, theGray Fox Capital Ltd. accountingfirm in Concord. Page One

“(The Indians are)looking at their underperforming areas and asking, ‘Howcan we restructure?’You’re not physicallyaltering it to where, infive years ... you can’tgo back and undo it.”— Mark Rosentraub, chair of the department of sport managementat the University of Michigan. PageOne

“The great thingabout urban agricul-ture is that it ... unitesthe rural and urbanareas, and we realizea common destiny.”— Brad Whitehead, president,the Fund for Our Economic Future. Page 17

“We wanted dock access closer to Cleve-land; if we could getstationed closer to thecity, it would mini-mize our expenses.”— Lance Woodworth, director of operations for Put-In-Bay BoatLine. Page 20

If airline reduces service after merger, it remainson hook for millions in lease, construction feesBy JAY [email protected]

If Continental Airlines Inc. wereto abandon hub operations atCleveland Hopkins InternationalAirport upon consummating itsplanned merger with United Airlines,it would still be on the hook formore than $120 million in costshere.

It’s unlikely the new United Air-lines would pull out of Clevelandentirely, of course. But the cost of areduction in service at Hopkinswhile the airline retains its long-term and fixed obligations therewould be substantial.

A key to the merger of Continentaland United that was announcedMay 3 is cost savings. Officials of thetwo airlines have said they expectthe merger to reduce expenses orincrease revenue of the combinedoperation by $1 billion to $2 billionannually by 2013. Those benefitscould come through a reduction inthe number of flights offered, higherfares and layoffs.

Executives of the combined air-line also expect to incur at least $1billion in one-time costs, such asemployee severance, as a result ofthe merger. But they also may beanticipating the expense of reducing

See CONTINENTAL Page 4


service at various airports.The fear in Northeast Ohio is that

the new United Airlines would findsome of its savings by abandoningCleveland Hopkins as a hub airport— an airport an airline uses as acenter for moving passengers fromsmaller “spoke” cities to other cities.

To do so, though, would be expensive for the airline because alarge portion of Continental’s costshere are fixed obligations. Even if itreduces service here, the airline willcontinue to pay these costs untilbonds are paid off and leases andother agreements expire.

Bonded to HopkinsThe biggest nut for Continental in

Cleveland is a series of special revenue bonds issued in 1998 forthe construction of Concourse D,which is key to the hub concept because it is used by Continental forits regional jet service.

Ricky Smith, director of the city’sDepartment of Port Control, whichoversees Cleveland’s airports, saidthat debt is a direct obligation ofContinental, though it was issuedthrough the city to take advantageof lower borrowings costs. It’s onthe city’s books at $120.3 million.

The rest of Continental’s obliga-tions at Hopkins are in the form oflanding fees and long-term leases.According to financial informationreleased by Hopkins officials, Continental paid $33 million toward


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Continental: Some leases run through ’27 continued from PAGE 3

the operation of the airport in 2009.Landing fees, which are charges

incurred per 1,000 pounds of grossweight of the aircraft making thelanding, accounted $14.2 million ofthat amount in 2009. That costwould be reduced if the merged air-line cut flights, though Continental isgoverned by a master lease agree-ment that runs through 2015.

The rest of Continental’s costs atthe Cleveland airport — $18.8 mil-lion a year — is for lease obligationsfor gates the airline operates in con-courses C and D and for hangar andother ancillary services. The expira-tion of those leases ranges from December 2019 to December 2027.That portion of Continental’s annualexpenses at Hopkins would not dropif the airline was to cut the numberof flights out of the airport.

No need to panicIt potentially will take years to

integrate the two air fleets into a single airline. It also will be monthsbefore federal regulators even approve this union, and longer stillfor the two commercial air powers tomerge their work forces and groundoperations.

Only then will the consolidatedairline decide which routes — andhubs — to keep, which to grow andwhich to discard.

Cleveland Mayor Frank Jacksonmoved quickly to protect the inter-ests of Cleveland Hopkins, enlistingthe support of the local congressionaldelegation and pressing the city’scase with Continental CEO JeffreySmisek, who will be CEO of themerged airline. At a news conferenceMay 3, the mayor said he and Mr.Smisek agreed to meet to discussHopkins’ role in the new airline.

“He was willing to have a conver-sation about Cleveland in the newstructure,” Mayor Jackson said.

The mayor also asked Mr. Smith,the director of port control, to convenea panel of air service, financial, legaland regulatory experts to advise themayor as the planned merger proceeds.

Asked about the impact of themerger in a telephone interview lastFriday, Mr. Smith described his approach as measured. “We’re tryingnot to cede to panic,” he said.

Mr. Smith was reluctant to specu-late about the role of Hopkins in thefuture of the new United Airlines. Instead, he said, he would rely, atleast for now, on assurances the cityhas received from the airline. Buthe’s planning to make the city’s caseas the merger progresses.

“We’re working to help them notjust maintain the hub (in Cleveland)but we will present a plan to them togrow the hub,” he said. “We are oneof the few airports in their new system that has capacity to grow.” ■

“We’re trying not to cedeto panic.” – Ricky Smith, director of Department of Port Control, City of Cleveland



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Tax credits fuel growth at med device firmsMentor, Akron companies planning expansionsBy CHUCK [email protected]

Three medical device makers gearingup for significant expansions were amonga handful of Northeast Ohio companiesthat received state tax credits over the pastfew weeks.

The three companies — Steris Corp.and U.S. Endoscopy, both of Mentor, andTheken Spine LLC of Akron — received atotal of $4.67 million in job creation taxcredits, which apply to increases in theirpayrolls, as well as other incentives awardedto encourage big expansions planned ateach company.

Steris, which makes decontaminationproducts, received a 65% job creation taxcredit valued at $2.27 million over 10 yearsas part of an expansion plan that is supposed to create a total of 313 jobs inMentor over the next three years, accordingto Ron Traub, economic and communitydevelopment director for the city. Thecompany previously announced plans tomove 240 positions to Mentor from Erie,Pa., by the end of 2011.

The city last week approved its own $1.3million tax credit to encourage the expan-sion, Mr. Traub said, adding that the company also was in conversations aboutexpanding in Alabama and Mississippi.

The expansion will involve the con-struction of a two-story, 55,000-square-foot office building on Steris’ headquar-ters campus, Mr. Traub said. Steris has yetto release many details on its plans.

U.S. Endoscopy also has received stateand local incentives to fuel a growth plan

expected to include a physical expansionand the addition of 150 jobs in manufac-turing, engineering and office positions.The company today employs 290 in Mentorand 350 globally.

“This has been an interesting two weeksfor the biotech industry in the city of Mentor,”Mr. Traub said.

U.S. Endoscopy, which makes acces-sories for gastrointestinal surgery and other endoscopic procedures, received a50% state job creation tax credit valued at$555,000 over seven years, which comple-ments an $871,000 grant it received fromthe city of Mentor in April.

The company plans over the next sixmonths to identify a location where itcould acquire 75,000 square feet to100,000 square feet of space, said chief financial officer Peter Brumbergs. U.S. Endoscopy most likely would buy or leasean existing building, creating offices, manufacturing operations and warehousespace. It aims to move into the additionalspace in 2011, he said.

Positive local signIn Akron, Theken Spine LLC received a

55% state job creation tax credit valued at$1.85 million. The maker of spinal implantproducts reported to the state that it expects to create 199 jobs during the seven years the tax credit is in place.

The tax credit shows the company’swillingness to grow locally, which somemay have questioned after Theken Spineand a few related companies were acquiredin 2008 by Integra LifeSciences HoldingsCorp. of Plainsboro, N.J. The credit requires

the company to maintain operations in thestate for at least 10 years.

Theken director of marketing RachaelSmith declined to provide details on thecompany’s expansion plans.

“Things are still in a developmentphase,” Ms. Smith said.

Steris, which was founded in 1987 andhas annual sales of about $1.2 billion, is often mentioned when economic develop-ment officials give examples to show howthe region can be successful in the bio-medical industry. The other two compa-nies, though smaller, have grown in recentyears. The Theken family of companiesnow employs 100, up from 59 in October2007, and U.S. Endoscopy’s revenues haverisen by 20% to 30% during each of thepast five years, Mr. Brumbergs said.

“If the economy would have been better, we would’ve done even better thanthat,” he added.

And beyond medicine …Also receiving state tax credits were

Cleveland Range LLC of Cleveland and InterGroup International Ltd., which isbased in Warren but a month ago openeda Euclid operation.

Cleveland Range, which makes steamcooking equipment for businesses, hospitalsand schools, was awarded a 50% credit valued at $160,000. The company expectsto create 80 jobs over the course of the six-year credit.

InterGroup International, which makesplastic resins from post-industrial plasticwaste and sells thermoplastic vinyl andmetal-nylon boards, received a 45%, five-year credit valued at $65,000. The companyplans to hire 42 more people during thefive-year period. ■

Mercury emissions fromboilers next EPA targetBy WASTE & RECYCLING NEWS

The U.S. Environmental Protection Agency is proposingto cut emissions of mercury and other substances from U.S. boilers, process heaters and solid waste incin-erators.

“Strong cuts to mercury and other harmful emissionswill have real benefits for our health and our environ-ment, spur clean technology innovations and saveAmerican communities billions of dollars in avoidedhealth costs,” said EPA administrator Lisa P. Jackson.“This is a cost-effective, common sense way to protectour health and the health of our children, and get America moving into the clean economy of the future.”

The proposals cover two types of combustion units.The first type of unit, boilers and process heaters, burnsfuel such as natural gas, coal and oil to produce heat orelectricity.

These units also can burn nonhazardous secondary materials such as processed tires and used oil.

The second type of unit, commercial and industrialsolid waste incinerators, burns solid waste.

Large boilers and all incinerators would be required tomeet emissions limits for mercury and other pollutants.Facilities with boilers also would be required to conductenergy audits to find cost-conscious ways to reduce fueluse and emissions.

Smaller facilities, such as schools, with some of thesmallest boilers, would not be included in these require-ments, but they would be required to perform tune-upsevery two years.

EPA will take comment on these proposed rules for 45days after they are published in the Federal Register, andwill hold a public hearing on these rules soon thereafter.For more information on the proposals and details on the public hearings, visit www.epa.gov/airquality/combustion. ■

(Waste & Recycling News is a sister publication ofCrain’s Cleveland Business.)



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Closed auto dealers gain small victory in bankruptcy casePerformance scores on which Spitzer, othersshuttered by Chrysler were judged now open

By DAN SHINGLER and NEIL ROLAND

Alan Spitzer and about250 other rejected ChryslerGroup dealerships currentlyin arbitration proceedingswith the automaker willgain access to their Chryslerperformance scores — andthose of their competitors — undera decision by a federal bankruptcyjudge last week.

Mr. Spitzer was the largestChrysler dealer in the nation to losehis franchises, with seven of hiseight stores affected. His dealer-ships in Akron, Cleveland, Columbus,Lakewood and Sheffield all were cutfrom the Chrysler network, as werelocations in Pennsylvania and Florida.

U.S. Bankruptcy Court JudgeArthur Gonzalez in New York hasunsealed each dealer’s spreadsheetof about 30 performance categoriesfor use in arbitration, a copy of thejudge’s decision shows.

The judge also held that eachdealer can get copies of the perfor-mance charts of rivals to whom thedealer was compared when thedealer was terminated, according tothe decision.

“Gonzalez, who had ruled againstthe dealers at every turn, surprisinglyruled in the dealers’ favor,” said Mr.

Spitzer, who co-chairs andhelped found the Commit-tee to Restore DealerRights, which lobbied Con-gress to force Chrysler intoarbitration last year.

“I’m just wondering ifhe’s starting to realize hewas in fact duped byChrysler, because he was,”

said Mr. Spitzer, who has main-tained all along that Chrysler hasnot been forthcoming with accurateinformation in its bankruptcy caseand its decisions to close dealers.

Mr. Spitzer said his lawyers areworking to get the spreadsheets heneeds from Chrysler. In the mean-time, he said he hopes the companywill negotiate a settlement with himto keep at least some of his dealer-ships open.

If that doesn’t happen, Mr.Spitzer said, he will go to arbitra-tion. So far, Chrysler has won threeof the four arbitration cases thathave been heard, including one inCincinnati. But Mr. Spitzer said onlytwo of those cases — both in Florida— were adequately defended bytheir dealers. Those two cases weresplit, with one ordered to close andChrysler forced to keep the secondopen.

“As far as I’m concerned, the scoreis one to one,” Mr. Spitzer said.

Ray of hopeLosing a case and being forced to

release more information to dealersmight put pressure on Chrysler tosettle, Mr. Spitzer said.

“I wouldn’t say I’m significantlymore optimistic, but I’m guardedlyoptimistic that they’ll wake up anddo the right thing some day,” he said.

In arbitration, dealerships can usethese spreadsheets to evaluate thevalidity of Chrysler’s explanations ofwhy they were shuttered, said dealerlawyer Leonard Bellavia, of Mineola,N.Y.

“We intend to show the many discrepancies between what Chryslerasserted in the bankruptcy hearings

Spitzer

as criteria for rejection against whatthey now allege in the arbitrations,to show that Chrysler will arguewhatever suits its purpose at thatgiven time,” Mr. Bellavia said.

Chrysler has described eachspreadsheet as “a historical trackrecord” of sales and financial performance that incorporatescomparisons between a dealershipand competitors in its market area.

In the wake of Judge Gonzalez’sdecision, Chrysler said it alreadywas producing the spreadsheetssought by individual dealers.

“This decision validates whatChrysler Group is already doing andthat the company is properly following both the BankruptcyCourt rulings and the discovery provisions of the Federal Dealer Arbitration Statute,” the companysaid in an e-mail.

Chrysler added: “The process to determine which dealership contracts were rejected evaluateddealership performance and marketfactors using data-driven criteriaand was applied to every dealer.”

Limited cooperation allegedMr. Bellavia disputed Chrysler’s

statement, saying the company hasbeen producing only fragments ofdealer performance scores in arbi-tration.

“Chrysler had been providingonly a very limited excerpt from thearbitrating dealer’s spreadsheet,which redacted all of the perfor-mance metrics,” he said.

Mr. Spitzer said Chrysler so farhas not been willing to share withdealers the criteria the companyused to decide which dealerships toclose — and he still wants to see it.

“In our view, they have not complied with the law in terms ofthe criteria,” Mr. Spitzer said. “Thelegislation requires them to give thespecific criteria that was used to terminate the dealer and they’venever given it.”

Another dealer lawyer, Mark Ornstein of Orlando, agreed.

Mr. Ornstein, whose arbitrationson behalf of three Florida clientswere completed last week — he wonone and lost two — said he tried toobtain from Chrysler the criteriaused to terminate the dealers.

“All we got were fragments,” hesaid. “We went into the hearing totally blind. I don’t think my clientswere ever given the real reason whythey were terminated.”

Last week, a rejected-dealers’group urged all its members in arbi-tration with Chrysler to have theirlawyers obtain their individualspreadsheets from the automakerimmediately, as Mr. Spitzer alreadyis doing.

Mr. Spitzer said he still hopes to resolve his situation by mid-summer. ■

(Dan Shingler is manufacturing reporter with Crain’s ClevelandBusiness and Neil Roland is Wash-ington reporter with AutomotiveNews, a sister publication.)

OPEN THE CASE

Last week, a federal bankruptcyjudge ruled Alan Spitzer and other auto dealers in arbitration proceedings can access theirChysler performance scores,which include about 30 performance categories used in arbitration.

Additionally, these auto dealerscan access their rivals’ scores,which were used when comparingeach other when it came to termina-tion.

Mr. Spitzer hopes being forced toshare more information with dealersmay force Chrysler to settle.

“I’m guardedly optimistic thatthey’ll wake up and do the rightthing some day,” Mr. Spitzer said.


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Crain’s honors region’s health care heroesWinners were honored in nine

categories at the 2010 Health CareHeroes awards reception, held lastThursday afternoon, May 6, at theCleveland Marriott Downtown atKey Center.

About 275 people attended the reception for the third annual awardprogram. The nine winners weredrawn from a pool of 27 finalists.

Here are the winners in each category:■ Volunteer: Dr. Nicholas Marko,neurosurgery resident, ClevelandClinic■ Allied Health: Beth Shapiro, socialworker, Hospice of the Western Reserve■ Physician: Dr. Chester H. Ho,chief, spinal cord injury, LouisStokes Cleveland VA Medical Center■ Advancements in Health Care:Dr. Joseph Baar, director, breast can-cer research, Ireland Cancer Center,University Hospitals Case MedicalCenter; and associate professor,Case Western Reserve University

Boost: Law firms adding to health care rankshealth care is delivered.

While some questions can be answered now, many more will needto wait for regulations to be handeddown from the Internal RevenueService, the U.S. Department of Labor and the U.S. Department ofHealth and Human Services beforespecific advice can be given, Mr. Ferkovic said.

Regulations are expected as earlyas late summer for some provisionsthat go into effect in September andin 2011, though many more regula-tions will be crafted in the followingyears, said Alan Schabes, a partner in

the health law group at Cleveland-based law firm Benesch FriedlanderCoplan & Aronoff.

In search of more staffThat expected uptick in business

is prompting some firms to boosttheir staffs of health care experts.Among them is Benesch, whichnow has 20 health care attorneys.

“I would love to hire more,” Mr.Schabes said. “If I could find them,I would hire them.”

Health care lawyers are in highdemand across the country, and heexpects that situation to continue inthe coming years.

Stephen Sozio, a partner in JonesDay’s health care and governmentinvestigations practice, said his lawfirm is looking to expand its 89-member team of health care attor-neys nationwide, but he admits thecompetition will be stiff.

“It’s one of the few growth areaswithin the legal industry,” he said.

Likewise, SS&G expects to addfive to 10 employees over the nextyear to its current staff of 105 whowork in Ohio, Michigan, Pennsylvania,Florida and South Carolina, Mr.

Ferkovic said. Cleveland law firmBaker & Hostetler also is trying toboost its number of health care attorneys as clients look for ways to“survive and/or thrive under healthreform,” said Steven Eisenberg, a part-ner in the firm’s health care practice.

Of particular interest will behealth care litigators, Mr. Sozio said.The Obama administration has setaside money to fulfill its promise tocrack down on fraud and abuse inthe health care system, he said. Thereform bill also has sweetened thepot for whistleblowers, who nowcan make more money for reportingfraud.

“This statute makes it easier to recover and eliminate some of thedefenses relied upon by health careproviders,” Mr. Sozio said.

While many regulations still areon the drawing board, it’s never tooearly to start preparing for the effectsof health reform, Mr. Eisenberg said.

“We have directional guidancebut we don’t have concrete guid-ance,” he said. “(But) our clientsthat will do well are the ones whoare more proactive and are reallythinking about it.” ■

continued from PAGE 3

School of Medicine■ Employer Achievement in Well-ness: Herbruck Alder ■ Nurse (Nonhospital setting): Adri-ana T. Whelan, nurse practitioner, TheFree Medical Clinic of Greater Cleve-land■ Nurse (Hospital Setting): Michele

Reali-Sorrell, assistant nurse manager,nurse educator, Huron Hospital■ Health Care Advocate (Individual):Helen Moss, founder and managingtrustee, The Helen Moss Breast Cancer Research Foundation■ Health Care Advocate (Organiza-tion): Voices for Ohio’s Children

An independent panel of judgesreviewed more than 100 nomina-tions this year as part of the selectionprocess for the 2010 Health Care Heroes awards.

The judges were: Lois A. Bowers,managing editor of Medical Economics;Martha K. Raymond, a registerednurse and managing editor of Con-temporary Pediatrics; Sheryl Stevenson,managing editor of OphthalmologyTimes; Julia Talsma Kotowski, a medical marketing consultant;Tracey Walker, managing editor ofFormulary; and Ron Rajecki, a free-lance writer with 25 years of experi-ence in the trade press for titles suchas Modern Medicine.

JASON MILLER

Scott Misischia, the director of north-ern Ohio sales for Anthem, addressesthe crowd at Crain’s Health Care Heroesevent Thursday afternoon.


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There are few better ways for me(and the 22,000-plus others whoread it daily) to get an overalllook at Ohio’s economy than by

scanning our popular Morning Roundupe-mail. Lately it’s been offering a fairamount of evidence that the economicmalaise could be coming to an end.

On Thursday last week, ourroundup (you can sign up forthis and all our other e-mailnews products at www.CrainsCleveland.com) included severalstories of promising develop-ments in the Buckeye State.Among them was a web reportfrom The Vindicator in Young-town that linked to a featurestory by Inc. magazine on theimpressive efforts ongoing toremake the Mahoning Valley town into amecca for tech start-ups.

While it’s not the first national mediaorganization to report on the Youngstownrevival (National Public Radio did a similar story a few months ago), Inc.offered more evidence that a new economic era has begun in the heart of

what once was Ohio steel country.That same day, we offered a story from

Columbus Business First, the capitalcity’s weekly business newspaper, thatreported Nationwide Insurance Co.plans to hire 1,400 people across its national operation, with 600 of the addi-tions here in Ohio. A company official

told the newspaper that whileits property and casualty linesare still “in a pretty tough envi-ronment,” the additions reflectedsolid first-quarter results andwere in response to businessdemands.

And there was this lead para-graph from a story on (TheYoungstown/Warren) BusinessJournal web site: “After 18months of pervasive gloom,

dealmakers from Ohio are increasinglymore positive about the mergers-and-acquisitions environment.”

Central to the story was a survey released by the Cleveland chapter of theAssociation for Corporate Growth andthe financial data firm Thomson Reutersthat showed that 94% of the state’s deal-

makers (lawyers, investment bankers,accountants, etc.) expected an uptick inmerger-and-acquisition activity in thenext six months.

“Many factors are contributing to theincreased M-and-A activity, includingthe greater willingness of business ownersto consider a sale because their businesses have stabilized, significant improvement in the debt markets overthe last six months, and the potentialchange in the capital gains tax rate in2011,” said Thomas Littman, presidentof Kirtland Capital Partners.

By the way, 82% of those respondingto the survey identified the current economy as a buyers’ market. That’s onereason we have decided to present abusiness breakfast on just that theme onWednesday, May 19, at the Ritz-CarltonHotel.

Expert panelists will help educate atten-dees on how to determine whether it’stime to sell a business or time to reinvest toincrease its value for the future, whetherto hand off to the next family generation or sell at a profit at a later date. You can register at www.CrainsCleveland.com. ■


FROM THE PUBLISHER

BRIANTUCKER

Be coolN

o one wants to see the combined airlinethat would result from the merger of Continental Airlines and United Airlinesclose its hub in Cleveland. But the com-

bative stance taken by U.S. Rep. Dennis Kucinich inresponding to the merger’s perceived threat to thehub operation at Cleveland Hopkins InternationalAirport doesn’t seem to us to be the best approachto securing its presence over the long haul.

The ink was still wet on the merger agreement between the two big airlines and Rep. Kucinich already was proclaiming last week that he was “prepared to use the full power and authority of myoffice to see to it that Cleveland’s interests are protected and air passengers nationally are protected.”By power, he meant using his position as chairman of the House Domestic Policy Subcommittee to investigate whether the combination should pass antitrust muster.

“The Clayton Antitrust Act makes it very clear thatif any of the parties inflicts substantial economicharm, that can be a reason to deny a merger,” thecongressman said.

The threat against the corporate machine was vintage Kucinich, and oh so predictable. But we’renot sold on the benefits of wielding an antitrust stickto get the two airlines to do Cleveland’s bidding.

In exploring whether a Continental-United union would be anticompetitive in nature, the Justice Department largely will focus on broader issues such as whether their combined routeswould create too much dominance in certain markets and whether concentrating more overallmarket share in the hands of fewer airlines wouldtranslate into pricing nightmares for flyers. Deter-mining the local fallout from whether the two airlines operate six, seven or all eight of their current domestic hubs after they merge likely willbe lower on Justice’s antitrust checklist.

We also question whether positioning Cleveland asan adversary of the two airlines’ plans is the right tackto take if the city hopes to court their favor and somaintain the hub status Hopkins has enjoyed thanksto its collaborative relationship with Continental.

Rather than rely on hot rhetoric to intimidate theairlines, let’s be cool and accentuate the positive instead. How about rallying the business communityand even leisure travelers to join in a letter-writingcampaign that would thank Continental for its presence here and would express the writers’ commitment to make the combined airline theirfirst choice if it were to keep a Cleveland hub?

And why not start putting together a businesscase for keeping the operation here, just like U.S.Rep. Steve LaTourette and attorney Fred Nance(among others) did when the federal governmentwas ready to pull the plug on the Cleveland office ofthe Defense Finance and Accounting Services?

If nothing else, work on the latter could serve to sellanother airline on expanding its presence in Cleve-land should Hopkins become the odd airport out inthe hub plans of a united Continental-United. It defi-nitely would be more productive than listening to civicleaders engage in panicked talk that assumes theworst outcome for Hopkins in this unfolding story.

PUBLISHER/EDITORIAL DIRECTOR:Brian D.Tucker ([email protected])

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

AND COUNTING ...What has been the most important public health initiative of the past 30 years? (Asked during the 2010 Health Care Heroes awards event)

TRACY TILLOTSONEastlakeRecovery ResourcesThe increase in public aware-ness about obesity … the impact that obesity has on everyfacet of life satisfaction.

SHARON ALLENClevelandThe Free Medical Clinic ofGreater ClevelandI think it would probably be HIVand just getting more knowledgeout there.

TANYA ZELENKOVMayfield VillageProvidence Home HealthCareThe focus on more prevention.Prevention is the key to reducinghealth care costs.

Some good news entering the inbox

Crain’s Cleveland Businessis celebrating its 30th year asNortheast Ohio’s premiersource of business news witha special double issue, whichwill feature profiles of the 30most influential Clevelanders.

As part of the celebration,we also are reflecting on themost memorable events ofthe past three decades withweekly polls — some of whichcan be found in this space —trivia questions, online con-tent and video interviews.

You can get in on the funby visiting CrainsCleveland.com/30thanniversary.


Sudden deadlines set by lendersfor borrowers to buy a loan canyield huge slashes in principal out-standing, a surprisingly pleasantoutcome in this dour time as realestate finance begins to resemble avast casino. As lenders reduce theircommercial real estate exposurebig-time and developers learn unaccustomed lessons about thevalue of reducing leverage on prop-erties, some win at slots like Mr.Munsell and reap huge savings.

Other developers play dice, pursuing distressed loans as a way tograb properties at big discounts.That’s a strategy Mr. Munsell eschews, because making a go evenof properties he knows is tough in therecession.

Meanwhile, the traditional loanworkout process is under way. Otherdevelopers with properties suddenlyworth less than the loan as a result oflosing tenants or missing a propertytax payment keep a poker face as theytalk to lenders, putting more cash onthe table to get outstanding loan prin-cipal reduced, win a loan extension orrenew a loan that is tough to replacewith another lender.

In Mr. Munsell’s case, JPMorganChase made the loan Dec. 21, 2007,and did not get it sold to the mort-gage-backed securities market beforethe market essentially shut down insummer 2008. He stressed that hisloan was performing, had plenty ofterm left and that the buildings aredistress-free, as the two towers at23240 and 23250 Chagrin Blvd. are93% leased. Officials at JP Morgan didnot respond to three calls and e-mailsabout the deal.

Playing chickenOther, less esoteric, examples of

such deals abound as lenders look totrim their commercial real estate exposure and real estate investorslearn how hard it is to reduce leverage.

John Ferchill, CEO of the Cleve-land-based Ferchill Group real estate development concern, recently fielded a question at aNAIOP Northern Ohio trade groupfunction about how his firm handlestalks with lenders.

“We play chicken with lenders,”the blunt Mr. Ferchill said, notinghe would take no follow-up ques-tions from the media.

Robert Monchien, president ofForest City Land Group Inc., thehomebuilder-oriented land divisionat the big Cleveland-based real estate developer, said examples ofprofiting from lender woes werescarce in the past because “therewas none of it before the downturn.They are few and far between.”

“We expect to see more of this asbanks get more realistic in the valu-ations that they have on these assets.” Mr. Monchien said.

He should know.

Mr. Monchien and his team havespent the last two years looking forways for Forest City to profit fromlender woes or those of other resi-dential land developers. In ForestCity’s case, it reported $11 millionin income from early extinguish-ment of land-loan debt in 2008. Mr.Monchien said in an interview theincome resulted from Forest Citybuying a loan for “substantially”less than its original value on 800acres it owns in Tucson, Ariz.

Likewise, Forest City reported lastmonth that it gained a 54% owner-ship interest in the 3,000-acre Wood-forest planned community in Hous-ton for a $7 million investment. TheTexas deal is in one of the few U.S.metro areas where the new-homemarket has some life to it.

Forest City played substitutebanker in that deal. Mr. Monchiensaid it replaced a mezzanine, or secondary, loan for a lender liquidatingits land-loan portfolio. The key part ofthe deal to Forest City was that theprimary lender is happy with the project, he said, and will continue toextend financing for adding streetsand other infrastructure in the project.

Mr. Monchien refused to identifylenders involved or specific dollars.Why?

“We may want to do businesswith them again,” he said.

Listeners to some Forest Cityconference calls with securities analysts and in the most recent con-ference call of Developers Diversi-fied Realty Corp. of Beachwood willhear the phrase “loan forgiveness”listed in the strategies for copingwith their debt loads. Forest Cityspokesman Jeff Linton said he couldnot elaborate on such deals on the commercial front. DevelopersDiversified spokesman ScottSchroeder declined comment.

Off the booksHowever, indications abound of

such goings-on even among smallerNortheast Ohio players, down tosmall businesses that own their ownbuilding.

“If you would have told me a yearago banks would be selling thesenotes for 50 cents on the dollar, I’dhave been surprised,” said John Funk,director of the real estate unit at theCleveland-based Maloney+Novotnyaccounting firm. “Now there’s moreof it than I thought would be happening. The banks have alreadywritten off the loans. They want themoff their books.”

Ryan Sommers, president of theGray Fox Capital Ltd. accountingfirm in Concord, said he has seenrealty-owning clients negotiate discounts in principal of 25% to 40%on loans of $500,000 to $2.5 millionon four Northeast Ohio properties— a mixed-use project, a shoppingcenter and two land loans onwould-be new home developments.


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Loans: Lucrative deals emergecontinued from PAGE 1 “All of those assets are out of favor

with banks,” Mr. Sommers said.“The less desirable the asset class,the better the terms. The bankswould rather work with the borroweror a replacement owner before getting the property back. Foreclo-sure is the last thing on their list.”

Rick Ferris, president of the Sequoia Realty brokerage in Mentor,said he approached lenders withsuch offers on four small shoppingcenters he owns throughout North-ern Ohio. He said he thought itwould be “a bonus for everyone” intough times.

Rebuffed, Mr. Ferris wondered recently, “Had I defaulted on myloans, it might have been a differentanswer.”

Time for a trimMark Jablonski, president of

CenterMark Development of Cleve-land and a former realty consultantand bank loan officer, estimatesbanks are taking haircuts of as muchas 15% on distressed commercialloans and 30% on distressed residen-tial loans in the region. In this home-builder-decimating time, land loansfor residential projects are toxic andprices the sweetest.

Mr. Jablonski said he has been trying to meet bank workout officersfor the past two years to find suchproperties, but rarely gets in withformer colleagues.

“From that, I conclude their keyapproach — at least for now — is towork out loans with the owners if thecurrent owner has been a good boyand is willing to roll up his sleeves,”Mr. Jablonski said, a sentiment others echo. He expects more prob-lems ahead — a point reinforced bybanks continuing to recruit loanworkout specialists. ■


By KATHY AMES [email protected]

Chef Tom Quick said hehopes his new Frenchrestaurant inspired by var-ious New York bistros willbring a kind of joie de vivreto downtown Cleveland.

The $1 million, 10,000-square-foot Zinc Bistro +Bar + Bakery is planning asoft opening in late May tocoincide with the grand opening of

developer K&D Group’s $65 millionrenovation of 668 Euclid Ave. Theformer Atrium Office Plaza is a mix

of commercial and residen-tial space within which Zincis located.

“We’re going to be an ap-proachable French-Americanrestaurant,” said Mr. Quick,operator and head chef.

Zinc, which Mr. Quick saidis slang for “bistro” in French,is scheduled to officially open

June 8 with a raw bar and a menu that

ranges from the $7 field green salad toa $32 Hen and Lobster Fricassee — ahen breast cooked with lobster andcognac tomatoes in lobster stock.

“Most of our menu items will be$18 to $24,” he said.

Mr. Quick said he also is seekingcertification through the GreenRestaurant Association to becomeNortheast Ohio’s second green-certi-fied eatery, like The Greenhouse Tavern on nearby East Fourth Street.

“We want to be as environmentallyfriendly as we can,” he said.

Elements of Zinc Zinc’s 5,000 square feet of interior

space will accommodate 140 patrons.Its nearby bakery will sell homemade

croissants and other handmade items along with bakery provided bySeballos Pastries of Cleveland.

The outdoor patio will have another 5,000 square feet for diningand entertainment, with a stage forbands, an outdoor fire pit, a bar andseating for about 100.

To give the eatery its classic ambi-ence, the doors and mirrors will befrosted and scripted with words inFrench. Zinc also integrates mosaictile floors, bronze fixtures and burgundy booths beneath a 17-footceiling — along with a zinc counter-top at the beverage and oyster bar.

Mr. Quick said he partnered withCleveland Range, a maker of steamcooking equipment, to give the open


Quick

French eatery to open in revamped Euclid Ave. buildingZinc re-creates ambience of famed New Yorkbistros with ‘approachable’ menu offerings

kitchen energy-efficient technologythat improves food quality.

The combi-oven steamer, for example, cooks foods such as spinachfor a longer time at 80 degrees insteadof 212 degrees using dry gas instead of water. The process preserves thefood’s nutrients and vitamins.

Mr. Quick said he also plans to useas much locally grown food as possiblefrom urban agriculture operations.

Warming upZinc’s chef is no newcomer.Mr. Quick was an executive chef at

the Warehouse District’s well-knownbut now defunct Piccolo Mondo between 1992 and 1999, where heworked with Lola and Lolita chef andowner Michael Symon. He then openedin 1999 Epiq, a bistro in Concord.

Mr. Quick said the economy led tothe demise of the eatery in November2008, shortly after the collapse of the financial markets. A few months later,in March of last year, Mr. Symonhelped Mr. Quick take a jaunt aroundNew York City, where he observed theculinary techniques of chefs at notableNew York establishments such as thebustling brasserie Balthazar and theFrench bistro Pastis.

Mr. Quick settled on a conceptthat has characteristics of thoseeateries, such as the zinc-coveredcountertop and interior décor, andfelt the rejuvenated downtown areanear East Fourth Street could sustaina new upscale restaurant.

General manager John Williams,whom Mr. Quick recruited fromBoston, said he likened Cleveland’sburgeoning restaurant trade to that ofBeantown, where at every spin andturn there’s a James Beard award-winning establishment.

“We’re in a fantastic locationamong brilliant restaurateurs here,”Mr. Williams said. “A chef’s creationscome through their dishes, and thiscity embraces the movement ofcomposed dishes.” ■

KATHY AMES CARR

Zinc officially will open in June at therenovated 668 Euclid Ave. building.

Register for free e-mail alertsand receive:

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WHAT’S COOKINGWhat’s Cooking looks at the business

of Northeast Ohio’s restaurants, breweries and wineries. To submit information, please e-mail assistant editor Kathy Carr at [email protected].

■ The Cleveland Indians and theirfood and beverage partner last weekannounced a new partnership withthe Food Network, which will createsignature dishes for ProgressiveField’s suite menus.

The announcement at the ballparkwas the rollout of a multiyear agree-ment between the lifestyle networkand Delaware North Cos.’ Sportservicedivision, which operates concessionsand premium dining at more than 50sports and entertainment venuesacross the United States.

Sportservice’s chefs also will be introducing Food Network-brandeditems at other ballparks in the coming weeks; among them are theMilwaukee Brewers’ Miller Park andthe St. Louis Cardinals’ Busch Stadium.

“Food is a huge part of the experi-ence that fans have at sports events,so we are thrilled to be working withthe Food Network to bring more exciting and delicious dishes to ball-parks, stadiums and arenas through-out the country,” said Sportservicepresident Rick Abramson.

Delaware North will build and operate the Food Network-branded concepts, while the network will pro-vide training and marketing support.

■ The Greenhouse Tavern keepsreaching new heights.

The restaurant on East FourthStreet, which is Ohio’s first certifiedgreen restaurant, is incorporating anew rooftop urban garden that willgrow herbs and vegetables for use inthe eatery’s dishes. Even the dirt ismore environmentally friendly. Thesoil is the product of compost fromthe restaurant’s food waste.

The urban garden will be part ofthe rooftop dining terrace.

Implementing sustainable businesspractices is at the core of the missionof Chef Jonathon Sawyer, who wasnamed this year one of Food & Winemagazine’s Best New Chefs.

ON THE WEB Crain’s What’sCooking blog appears onour web site each Monday.Visit www.CrainsCleveland.com for the latest news

■ A Downtown Cleveland Allianceblogger says a vegan café in Board-man is expanding into Cleveland.

Robert Carillio said the Flaming IceCube soon will be occupying space atThe Park Building on Public Square indowntown Cleveland.

The Flaming Ice Cube opened in1997 and offers an eclectic selection ofnatural and artistic vegan products.

“I have been a longtime customer ofthe cube — and its unique eclectic giftshop at their flagship restaurant inYoungstown (Boardman) and I cansay with utmost confidence that it is a first-class establishment offeringunique, fresh and healthy and satisfyingfood alternatives,” Mr. Carillio wrote.

■ A Medina-based producer of refrig-erated foods has unveiled a technology

that improves the quality of foodpreservation and makes the producttaste more natural.

Sandridge Corp. said its new, high-pressure processing system eliminatesharmful bacteria, so chemicals such as benzoates and sorbates used to preserve food and extend shelf life nolonger are needed.

The processing system uses coldwater under high pressure rather thanthe traditional thermal process andpreservatives to provide minimallyprocessed foods with improved taste,texture and nutritional value, the company said.

“We have committed to this tech-nology, not only because food safety isour highest priority, but because wefirmly believe that foods with fewerpreservatives and clean labels are theright thing to provide to the con-sumers of today,” said CEO Mark San-dridge.

from the restaurant industry.

The mergers andacquisitions market islooking up.

More than 90% of Ohio dealmakerssaid they expect the environmentfor deals to improve over the nextsix months, according to a surveyby the Association for CorporateGrowth and Thomson Reuters.

The twice-yearly survey inter-viewed 681 investment bankers,private equity professionals, corpo-rate development officers, lawyers,accountants and business consul-tants, including 35 from Ohio.

In Ohio, 94% reported they expect more activity in the comingmonths. Thomas Littman, presidentand senior managing partner of

Beachwood private equityfirm Kirtland

Capital Partners, said in a state-ment that while he didn’t expectmergers and acquisitions to reachpre-recession levels, he was “bullishon the outlook” for 2010.

“Many factors are contributing to the increased M&A activity, including the greater willingness ofbusiness owners to consider a salebecause their businesses have stabilized, significant improvementin the debt markets over the last six months and the potential changein the capital gains tax rate in2011,” Mr. Littman said.

— Arielle Kass

Survey notes M&A industry optimism ON THE WEB Story from www.CrainsCleveland.com.



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Achieve.ANDREW PUZDER CEO, CKE RESTAURANTS, INC.CLASS OF ‘75Learn how our alumni engage at: www.csuohio.edu/alumni

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TAX LIENSThe Internal Revenue Service filed taxliens against the following businessesin the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federalgovernment. The lien is a public noticeto creditors that the government has aclaim against a company’s property.Liens reported here are $5,000 andhigher. Dates listed are the dates thedocuments were filed in the Recorder’sOffice.

LIENS FILED

Foods for Life Inc. Hobart HealthFoods5629 Pearl Road, Parma ID: 34-1253739Date filed: April 22, 2010Type: Employer’s withholding, unemploymentAmount: $16,287

Bud May Inc. Maynard Co.16850 Hummel Road, Brook ParkID: 34-1279706Date filed: April 7, 2010Type: Employer’s withholdingAmount: $16,167

Unique Landscaping Contractors Inc.19691 Euclid Ave., EuclidID: 34-1796902Date filed: April 12, 2010Type: Employer’s withholding

Amount: $14,925

Etcetera Services Inc. HouseworkEtc. Unpacking Etc.P.O. Box 40041, Bay VillageID: 34-1816713Date filed: April 20, 2010Type: Employer’s withholdingAmount: $14,905

Palekote Enterprises Inc. LandrysTrucking13250 Strathmore Drive, Valley ViewID: 34-1698520Date filed: April 15, 2010Type: Employer’s withholding, unemploymentAmount: $14,760

Power Alarm Inc.25086 Lakeland Blvd., EuclidID: 34-1344538Date filed: April 22, 2010Type: Employer’s withholdingAmount: $14,410

Automatic Stamp Products Inc.1822 Columbus Road, ClevelandID: 34-0665901Date filed: April 12, 2010Type: Employer’s withholding, unemploymentAmount: $13,719

Yorkshire Ventures Ltd. PaydayProfessional Employer25111 Miles Road, Suite C, ClevelandID: 34-1881212Date filed: April 7, 2010Type: Employer’s withholding, unemploymentAmount: $13,438

Integrity Investigations LLC1991 Crocker Road, Suite 600, WestlakeID: 20-1915641Date filed: April 12, 2010Type: Employer’s withholding, unemployment, failure to file completereturnAmount: $13,167

Atlantis Co.105 Ken Mar Industrial Parkway, Broadview HeightsID: 34-1634230Date filed: April 7, 2010Type: Employer’s withholdingAmount: $9,159

6506 Fleet Ave. LLC K & S Food & Gift6506 Fleet Ave., ClevelandID: 34-1937990Date filed: April 7, 2010Type: Employer’s withholding,

partnership income, failure to file complete returnAmount: $9,091

Wrightway Care LLCP.O. Box 19440, ClevelandID: 42-1696536Date filed: April 27, 2010Type: Employer’s withholdingAmount: $8,536

New Image Media Inc.26210 Emery Road, Suite 308F, Warrensville HeightsID: 34-1929688Date filed: April 8, 2010 Type: Employer’s withholdingAmount: $8,283

Tiburon Technologies6200 Rockside Woods Blvd., Suite 200, IndependenceID: 34-1744650Date filed: April 27, 2010 Type: Employer’s withholdingAmount: $8,001

Weekare Daycare Inc.4934 Broadview Road, ClevelandID: 34-1695141Date filed: April 20, 2010Type: Employer’s withholdingAmount: $7,795

A & L Restaurants Inc.19245 Detroit Road, Rocky RiverID: 04-3778906Date filed: April 27, 2010Type: Failure to file complete returnAmount: $7,626

Agape Home Health Care540 E. 105th St., Suite 3058, ClevelandID: 06-1725145Date filed: April 27, 2010Type: Employer’s withholdingAmount: $7,594

Technology Services Group of OhioP.O. Box 470456, Broadview HeightsID: 77-0598034Date filed: April, 7, 2010Type: Employer’s withholdingAmount: $7,101

Master Care Landscaping Inc.924 Aintree Park Drive, Mayfield VillageID: 34-1863169Date filed: April 12, 2010Type: Employer’s withholdingAmount: $7,029

Sahabs Lead Solutions Inc.2940 Noble Road, Suite 103, Cleveland HeightsID: 02-0535339Date filed: April 12, 2010Type: Employer’s withholdingAmount: $6,545



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Drafting the United Nations Charter at The Fairmont San Francisco, 1945

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GOING PLACESJOB CHANGES

ARCHITECTUREDOMOKUR ARCHITECTS: MichaelAugoustidis to architect.

CONSTRUCTIONGIAMBRONE CONSTRUCTIONINC.: Eric Melkerson to chief estimator; Justin Gottron to assistantestimator. THE KRILL CO.: Jeffrey R. Gliebeto CEO, co-chairman; David F. Fischback to co-chairman; DouglasJ. Fischback to senior vice presi-dent, secretary; Daniel J. Audia tosenior vice president.

DISTRIBUTIONAPPLIED INDUSTRIAL TECHNOLO-GIES: Jeffrey C. Jung to director of government sales; William C. Kershaw to director of governmentbusiness development and govern-ment marketing.

EDUCATIONTHE CLEVELAND INSTITUTE OFMUSIC: Megan Bush Granson to director of development. KENT STATE UNIVERSITY: John R. Crawford to dean, College of theArts.

FINANCEHUNTINGTON BANK: Collin Kniselyto senior vice president, senior rela-tionship manager; John Neumannto commercial team leader, middlemarket group.

FINANCIAL SERVICESKODA MINOTTI: Mike Fairbanksto telecommunications and networkengineer; Donna Marko to financialplanning assistant; Scott Foos to helpdesk technician.

HEALTH CARECLEVELAND CLINIC: Dr. DavidBronson to president, Cleveland Clinic Regional Hospitals; Fred DeGrandis to chairman, ClevelandClinic Community Physician Partner-ship and Quality Alliance. SOUTHWEST GENERAL: Dr. Susan E. Tout to medical director,emergency services.

HOSPITALITYEMBASSY SUITES CLEVELAND

DOWNTOWN: Kenric Hall to generalmanager.

INSURANCECHELKO CONSULTING GROUPLLC: Rowdy White to consultant.

MANUFACTURINGEATON CORP.: Jack Matejka to senior vice president, internal audit.

MARKETINGAKHIA: Megan Becka, Foluke Balogun and Olivia Mihalic to assistant account executives; NicoleKatz to designer; KathrynSeitzinger to account executive. OPTIEM LLC: Stacey Zur to accountexecutive.

MEDIACLEAR CHANNEL OUTDOOR:Sara Hechko and Jonathan Bollinto account executives.

NONPROFITTHE VILLAGE AT MARYMOUNT:Sarah Mathis to director of outpa-tient rehabilitation; Janet Lincoln tomanager, skilled care unit.

REAL ESTATETRANSACTION REALTY: Robert A. Baus and Dave Lamka to salesassociates.

SERVICEACTIVE PLUMBING SUPPLY CO.:Stu Bennett to vice president, sales.GABLES SEARCH GROUP INC.:David Freeman to account executive.

I-X CENTER: Jim Buckley to vicepresident, sales; Eric German to vice president, marketing and business development.INFOCISION MANAGEMENTCORP.: Brian Feisthamel to directorof quality assurance. SUNTROL CO.: Thomas C. Deckerto sales consultant.

BOARDSFRIENDS OF THE INDEPENDENCELIBRARY: Charlene Paparizos topresident; Jim Szatkowski andEileen Hawkins to vice presidents;Joann Zak Bernhofer to secretary;Barbara A. Kraig to treasurer; MaxineMelosovich to membership chair. THE FOUNDATION CENTER CLEVE-LAND: Deborah D. Hoover (Burton D.Morgan Foundation) to chair; RobertB. Jaquay to immediate past chair.

AWARDSCITY YEAR: Eric Wobser (Ohio CityNear West Development Corp.) received the Comcast LeadershipAward. THE FULBRIGHT PROGRAM:Patrick G. Coy (Kent State University)received a Fulbright Scholar Award toBotswana.NETWORK FOR TEACHING ENTRE-PRENEURSHIP: Greg Malkin(University School) received the 2010Teacher of the Year Award.

RETIREMENTTHE KRILL CO.: Shawn G. Dixon,chairman and CEO, after 36 years ofservice.

Send information for Going Places [email protected].

CrawfordKershawJung

ZurWhiteTout

DeckerGermanBuckley



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Middleburg Heights mortgage specialist sees turmoil as chance to growNew exec pumps $3M into Home Lending Source here,” vice president Zubin Nagpal

said. “There is an opportunity in thelong run for a substantial marketshare in the mortgage industry.”

Mr. Nagpal, with his father,Naresh Nagpal, made the $3 millioninvestment in the company. Mr.Nagpal said he chose to get involvedin the business because he seesconsolidation in the mortgage industry and wanted to be involvedas it changes. He also said it fit hisand his father’s profiles as investors.His father joined the board of HomeLending Source but does not havean executive role.

The younger Mr. Nagpal said hisfather is a serial entrepreneur whohas had “phenomenal success”growing businesses and profitablyscaling them up.

The elder Mr. Nagpal wasfounder of hospital administrationcompany Acute Care, which latermerged with Inphynet Bone, Muscleand Joint Inc. and Omni HomeHealth Care. Zubin Nagpal, prior tohis involvement at Home LendingSource, worked as a consultant ateconomic strategy consulting firmCRA International and private equityfirm Nine Rivers Capital.

Doug Reilly, the company’s CEO,said Home Lending Source has lessthan 0.1% of the nation’s mortgagebusiness, but that new rules fromthe Federal Housing Administrationrequiring lenders to have at least $1million in assets could knock nearly98% of the country’s mortgagelenders out of the business. The oldrequirement had been $250,000,and Mr. Reilly said it will rise as high

as $2.5 million in the coming years.Mr. Reilly said combined with the

state of the mortgage market, thenew rules leaves room for companiessuch as his to grow.

In addition to Ohio, Home LendingSource is lending in Arizona, Cali-fornia, Florida, Michigan and Ten-nessee. The 80-employee companyis “very close” to opening offices inColorado, Oregon and Washington,Mr. Reilly said, has plans for a branchin Charlotte, N.C., and opened threeFlorida branches in April.

The majority of any new jobs, Mr.Reilly said, would be in Ohio as theysupport the new branches.

Over the past year, the companyhas invested in infrastructure andsystems, Mr. Reilly said. It added newcompliance software, an accountingsystem, a new loan-origination system and a new pricing engine.

While the company now sells itsmortgages to banks such as Bank ofAmerica and JP Morgan Chase, Zubin Nagpal said, it is changing itsbusiness model to allow it to servicethe mortgages as well. “It’s a longerpayback,” Mr. Reilly said.

Over the past several years, HomeLending Source has kept to a “plainvanilla” approach, Zubin Nagpalsaid, allowing the company to makegood loans and stay out of the troublesome other mortgage companiesfound themselves in.

“It’s a really great time for us tomove forward and grow the organi-zation,” Mr. Reilly said. “We’re tryingto keep a focus and look at the longterm. We’re building a machinethat’s scalable.” ■

By ARIELLE [email protected]

The Home Lending Source inMiddleburg Heights is gearing up togrow.

Armed with a $3 million invest-ment and a plan to add people andbranches in the coming year, themortgage company is eyeing theturmoil in its industry and lookingforward to becoming a bigger player.

The company, which previouslywas known as Consumers MortgageCorp. of Ohio, has a new executiveteam and is aiming to originate $60million in mortgages each month. Itscurrent volume is about $200 millionin mortgage originations each year,or about $16.6 million each month.

“We have a strong will to succeed


S H O R T T A K E S

SMALL BUSINESSI N S I D E

MAY 10-16, 2010 CRAIN’S CLEVELAND BUSINESS 17

20 TAX TIPS:CLASSIFICATIONISSUES LINGERFOR SERIES LLCS.

■■ STRIKE A POSE: Lululemon athletica,an athletic apparel company best knownamong yoga aficionados, has opened a loca-tion at ETON Chagrin Boulevard.

The combined retail showroom and yogastudio is located in an alley space betweenFleming’s Prime Steakhouse and WineBar and Penzeys Spices. The outside isadorned with the retailer’s signature red andwhite; a large garage door, formerly used fordeliveries, serves as a fresh-air aperture foryoga sessions.

Lululemon’s showroom previously had beenlocated on Cedar Road in Beachwood. In addition to the ETON location, the retailer hasone other Ohio store, which is located inColumbus. Store hours are 11 a.m. to 5 p.m.Wednesday through Saturday and by appoint-ment.

■■ MOTHER ALWAYS KNOWS BEST: MomCorps, a national staffing company, is opening a franchise in the Akron/Canton area.

Mom Corps provides employers access topotential workers ready to fill in on an as-neededbasis. Candidates are given flexible employmentopportunities, which help toward balancing a career with personal needs and responsibilities.

Kimberly Symonds of Wooster is the regional owner of Mom Corps-Akron/Canton. Prior to starting this franchise, Ms.Symonds spent more than 13 years as an executive with several nonprofit health care organizations.

Mom Corps was founded in July 2005, andit has grown to more than 40,000 candidatesnationwide seeking flexible work schedules.Its client base has expanded to several hundred companies.

JASON MILLER

Baldwin-Wallace graduatesMatthew Pietro (from left),Sarah Sampsell and Todd

Alexander received a$20,000 grant from the cityof Cleveland and Neighbor-hood Progress Inc. to start

Central Roots, a garden that is scheduled to

open in June at East 59th

Street and Thackeray Avenue.

Health reform bill’s tax credits will boostsmall firms — if they can decipher rules

FROMVACANT TO

VIBRANT

Limited usage, variables offerobstacles in taking advantage

By SHANNON [email protected]

Health care reform watchers have twowords for small businesses: tax credits.

Under the health care reform billthat passed in March, small businesses imme-diately became eligible for tax credits if theyprovide health insurance to employees. See CREDITS Page 18

See FARMS Page 19

That provision is the single biggest concernfor small employers with regard to the healthreform bill, and the federal government recently sent postcards to 4 million small busi-nesses across the country to explain how to receive the tax credit, said Robert Klonk, exec-utive vice president of insurance brokeragefirm Oswald Cos.

As with any legislation, the tax credit portion of the law likely won’t be easy to understand. There are several stipulations andrules to abide by to receive the credits, sosmall employers need to be talking to consul-tants, brokers and insurers to figure it all out,

Vision to reuse decaying inner-city

land for urban farms,gardens takes shape;

advocates see potentialfor self-sustaining

industry

By KATHY AMES [email protected]

Picture this: Cleveland’s landscape reinvigoratedwith life in the form of urban farms and marketgardens. It may be a long way off, but the idealisticvision for the city slowly is taking root as farmers

and other entrepreneurs reuse vacant land and parkinglots for urban agricultural initiatives.

Some of the projects are modest in scope, but advocatessay that this industry, though still in its infancy, has the potential to become over the next couple of decades a viable sector with locally based urban growers, sellers and


said Steve Millard, executive directorof the Council of Smaller Enterprises.

The tax credit even differs depending on certain variables.Companies with fewer than 25 employees who make an averageannual wage of less than $50,000can get a tax credit of up to 35% ofwhat the business pays towardhealth insurance premiums for itsemployees, Mr. Klonk said. Thecompany also must pay at leasthalf the premiums to be eligible forthe credit, he added. The moreemployees a company has and themore money those employeesmake on average, the less the taxcredit will be.

As of 2013, the maximum taxcredit for these employers goes up to 50%, said Ethan McPeake, a benefit consultant for CBiz Inc., a management, benefits and accounting consulting firm inCleveland.

However, a company with fewerthan 10 employees with an averageannual wage of less than $25,000can get all the money they pay forpremiums back in tax credits, Mr.Klonk said.

But the tax credit won’t bearound forever, Mr. Millardwarned. A company only can applyfor the tax credit twice before 2013and twice after 2013, he said, sofirms need to figure out when thecredit would be most beneficial.

“Small employers should talk toa financial adviser about how touse this tax credit,” Mr. Millardsaid. “They can save some moneywith it.”

As of Sept. 23, companies of allsizes will be required to allow parents to keep adult children ontheir insurance until age 26, saidMeryl Kaplan, managing consul-tant at Findley Davies Inc., a Cleve-land human resources consultingfirm.

That sounds easy enough, but itcould get tricky with the imple-mentation of Ohio House Bill 1,which mandates that Ohio employers allow parents to keepadult children on their insuranceplan until age 28, she said. The big difference between the two mandates is that the federal plansays the adult child can be marriedwhile the Ohio law says they can’tbe married, she said.

“The state law is more generous,so it’s likely that companies willhave to comply with the staterule,” Ms. Kaplan said.

Just sit tightThe federal government is passing

along its own bit of generosity bygrandfathering in some health careplans that businesses already provided for employees when thereform bill was passed.

Under the bill, companies willbe able to keep the insurance plans


If you are a small construction or engineering company, or provider of goods or professional services, we invite you to apply for our SBE program. Small businesses are invited to learn more about the program at one of our workshops:

SBE Certification Workshop—Cuyahoga CountyThur., May 20 | 3-5 pm | 4747 E. 49th Street, Cuyahoga Hts.

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SMALL BUSINESS

GRANDOPENINGSGREENSTREET SOLUTIONSP.O. Box 39247Solon 44139-9953www.greenstreethome.usGreenStreet Solutions actively partnerswith homeowners to identify and cor-rect conditions that cause energy waste.GreenStreet Solutions’ home energyauditors walk the homeowner throughthe process, pointing out opportunitiesto improve energy efficiency and educating them about equipment,technology and behaviors that willhelp reduce home energy use. Green-Street provides specific recommen-dations, contractor support and financing options in one turn-key package.GreenStreet Solutions’ parent company,Vectren Source, is an energy companythat supplies natural gas to customersthroughout Ohio and the Midwest.

[email protected]

ASPHIRE SOLUTIONS LLC P.O. Box 770730Lakewood 44107www.asphiresolutions.comAspHire Solutions LLC, founded byMelinda White, is a full-service profes-sional recruiting and human resourceconsulting firm offering flexible service options to companies of allsizes. The firm aims to provideclients with candidates and profes-sional human resource services in thecategories of sales and marketing;human resources; health care; infor-mation technology; management; finance and accounting; and adminis-trative services. AspHire’s servicesalso include career coaching; profes-sional development skills training;

employee retention programs; busi-ness transformation and change management; performance, conductand behavior management; and orga-nizational design and development.Ms. White has more than eight yearsof experience in human resourcesand recruiting, and she has a bachelor’sdegree in applied arts and a master’sof education degree in adult learningand development. [email protected]

TITANS GYM AT THE ATRIUM619 Prospect Ave.Cleveland 44115www.titansgymcleveland.comTitans Gym at the Atrium is ownedand operated by Geoff Delgrosso.The facility will be open 24 hours aday, 365 days a year for members.Titans will have staff on site from 5a.m. to 9 p.m. Monday throughThursday; 5 a.m. to 7 p.m. Friday;and 9 a.m. to 4 p.m. Saturday andSunday. Along with a 22,000-square-foot gym, Titans will have a tanningfacility as well as a full-service cafeand smoothie bar. Member amenitieswill include free group fitness classes,and locker rental and laundry service.

216-574-2875

To submit a new business, send thefollowing information by e-mail toAmy Ann Stoessel at [email protected]: business name; address;city and ZIP; web site; brief descrip-tion of business; business phonenumber; business fax number;business e-mail address; and datethat business opened. Call 216-771-5155 with questions.

Credits: Some plans grandfathered incontinued from PAGE 17

they had on March 23 even if theydon’t meet the minimum standardsfor health care coverage created bythe reform bill, Mr. Millard said.These companies also will not haveto pay the federal penalties now inplace for companies that don’t provide the minimum health carecoverage for employees, he said.

Small employers should be careful not to make too manychanges to those plans if they wantto remain safe under the grandfa-ther clause, he said.

Though most of the health reform bill’s provisions excludesmall businesses, it’s still a lot toevaluate and understand. Outsideof the tax credit, Mr. Millard is advising small employers to sit tight until the federal governmentclarifies how many of the provisionswill be implemented at later dates.

“Don’t make any major changesat this point until we see how thisthing plays out a little bit,” he said. ■

“Small employers shouldtalk to afinancialadviserabout how touse this taxcredit. Theycan savesome money

with it.” – Steve Millard

executive director, Council of Smaller Enterprises



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SMALL BUSINESS

Farms: Urban agriculture spurs economydistributors cultivating a self-sustainingregion.

“The local food industry, of whichurban agriculture is a part, is experi-encing double-digit growth,” saidBrad Whitehead, president of theFund for Our Economic Future. “Thegreat thing about urban agriculture isthat it goes beyond business. It unitesthe rural and urban areas, and we realize a common destiny.”

Last June, the Fund invested$250,000 into the Ag-Bio Cluster Initiative, a network of NortheastOhio community leaders, officialsand other advocates that works to advance the local food industry.

In a similar vein, the nonprofitcommunity developer NeighborhoodProgress Inc. is evaluating the poten-tial for urban agriculture through aseries of Cleveland-area projects, saidBobbi Reichtell, senior vice presidentfor programs.

According to Ms. Reichtell, residentswithin the 16-county Northeast Ohioregion consume about $8 billion infood each year, but less than 2% ofthat consumption is of local food.

“If we could get to 10%, that’s $800million going back into the localeconomy,” she said.

Selling a concept According to Neighborhood

Progress, there are 3,300 acres of vacant land and 15,000 vacant build-ings within Cleveland’s city limits.

The nonprofit and the city ofCleveland funded this year through aproject called Re-Imagining Cleve-land the development of 56 pilot projects aimed at repurposing 15acres of vacant land.

The land reuse projects are expectedto be complete by fall. The initiativeswill join 175 community gardens and40 market — or for-profit — gardenscurrently in Cleveland.

The pilots either improve Cleve-land’s green infrastructure, or theyare urban agricultural projects suchas gardens, orchards and vineyards.Each received between $2,800 and$20,000 in funding, and the entrepre-neurs of the urban agricultural projects agreed to commit to theirventures for five years.

Among those initiatives is a two-acre market garden called CentralRoots, which was spearheaded bythree recent Baldwin-Wallace Collegegraduates.

The organizers hope to have thegarden at East 59th Street and Thack-eray Avenue operational by June. Although the initial selling seasononly will run through October, theentrepreneurs already have plans totransform the venture into a year-round operation.

Todd Alexander, a partner in theCentral Roots pilot, said urban agri-culture not only has economic andenvironmental benefits but socialimplications, too.

“The locals are on board,” he said.“We knocked on the doors of Thack-eray residents, and they signed lettersof support. Urban communities needfresh food, but they don’t alwayshave access to it.”

The Re-Imagining project also hasspurred Mansfield Frazier to rethinkthe use — or lack thereof — of threehalf-acre lots in the Hough neighbor-hood.

The Hough resident is using a$15,000 grant to develop The Vine-yards of Chateau Hough, and his goal

continued from PAGE 17 is to build a winery in that area,which is about one mile from theCleveland Clinic.

Down on the farmMeanwhile, more residents in the

city of Cleveland and NortheastOhio suburbs are turning to localfarmers for produce by becomingmembers of community supportedagriculture programs.

CSAs are composed of communitymembers who pay in advance a certain amount — usually between$500 and $600 a year — to becomeshareholders of a local farm. In return for the investment, the

members receive local producethroughout the growing season, andthe upfront cash infusions boost thefarm operation.

Although these partnerships arenot new concepts, the number ofmembers continues to grow, saidBrad Masi, founder of Oberlin-basedNew Agrarian Center, which helpsareas grow local food systems.

There are at least 24 farms through-out Northeast Ohio that participatein the CSAs, of which an estimated3,000 residents are members.

“They’re great marketing tools forfarmers, and there’s the social component too,” Mr. Masi said.

“People know where their food iscoming from, and they develop rela-tionships with these local farms.”

Even as urban agriculture continues to grow within NortheastOhio, there are some challenges toconverting the region into one witha fully self-sustaining urban agricul-ture industry, said Darwin Kelsey,executive director of the CuyahogaValley Countryside Conservancy,which is working to revive vacantfarms throughout Northeast Ohio.

“We’re at the beginning of a curve,”he said. “We’re not simply produc-ing new farmers, but new locallyowned businesses could develop tofacilitate the distribution of food. “

Even though the urban agricultureindustry is gaining ground, it likelywon’t be a significant income gener-

ator for years. Central Roots’ Mr. Alexander, for

example, doesn’t expect to earn anyincome in the first two years, as anymoney generated will be reinvestedinto developing the business.

While Mr. Alexander and his partners, Matthew Pietro and SarahSampsell, work other jobs for sup-plemental income, their goal is toorient Central Roots into a full-timebusiness. They plan within three tofive years to sell herbs and producesuch as arugula and sprouts thataren’t always readily available. Hehopes to eventually sell sauces, sal-sas and other food lines.

“We see this as an opportunity tocreate a core business that allows usto have different revenue streams,”Mr. Alexander said. ■



SMALL BUSINESS

Classification question holds back series LLCs

Small business owners soonmay have the option to reor-ganize their business interestsunder a new entity structure.

Eight states so far have passedlegislation permitting a new type ofbusiness structure called a “serieslimited liability company.” As itsname suggests, it is a series of business interests all containedwithin a master LLC.

The series structure offers someappealing benefits, but its acceptancestill is developing. Ohio has not yetauthorized series LLCs, but the keyto such acceptance in Ohio and therest of the United States dependslargely on when and how the InternalRevenue Service will recognize theseries LLC structure for tax purposes.

A series LLC is an umbrella struc-ture under which any number ofmembers, managers, interests orassets might reside. It could havecommon members with similarownership interests, common mem-bers with varying interests or differentmembers with unrelated interests.

The series structure would providesome isolation of assets and interestswithin the structure from legal lia-bilities of other assets and interestswithin the structure. It also mightprovide some tax benefits thatwould appeal to business owners.

As an example, consider the busi-ness structure of an operation thatmanufactures furniture. It mightalso have some retail sites, ware-housing and delivery vehicles, andit might even offer financing to customers. Under a typical LLCstructure, all those activities and assets would be held in a singleLLC, and segregating them legallywould require multiple LLC structures.

PETERDEMARCO

TAX TIPS

Under a series LLC, however, eachof those distinct processes could bestructured under an individual LLC,and each of those LLC structurescould have multiple related or unrelated parties as partners in thebusiness. Then the entire systemwould be held under a series LLC,with each structure under the masterLLC legally isolated from the others.

That has obvious implications forprotections from liability, which isone of the objectives of an LLC in thefirst place, to place limitations on theliability of those who are partners inthe LLC. But from a tax standpoint, itmight also offer some flexibility.

Tax rules allow a business entitythat is not an S corporation or a Ccorporation and has at least twomembers to make its own electionabout how it will be treated for federal income tax purposes — either as an association taxable as acorporation or as a partnership. Ifthe entity has a single member orowner, it can elect to be classifiedas a corporation or disregarded asan entity separate from its owner.

The advent of the series LLC raises a question about whether theseries would be classified as a singleentity for tax purposes, or whetherthe IRS would permit each entity

within the series to elect its own clas-sification.

The IRS has not yet issued anydefinitive guidance on that question,and that may be one of the key reasonsthe series LLC is not yet the law of theland in all 50 states. Just as the LLCstructure evolved slowly in the early’80s until the IRS ruled on how itwould be classified for tax purposes,the series LLC likely is awaiting asimilar IRS ruling before legislaturesand legal experts will begin embracingthe structure on a wider scale.

The IRS has given a hint as to howit might proceed in authoritativeguidance. In a private letter ruling,the IRS said it would consider thateach series in a series LLC woulddetermine its tax classification separately and distinctly from otherinterests inside a master LLC.

However, the IRS preliminaryviews are just that — preliminary —so it doesn’t give legal and account-ing experts enough certainty to beginacting on it. There are legitimatequestions, about whether separatestructures would be viewed by au-thorities as excessive or aggressivemeasures meant purely to achieve anobjective of avoiding taxes. Authori-ties have taken a very dim view ofsuch maneuvers in recent years.

There is still uncertainty over theseries LLC’s future, but if and whenthe IRS makes its view clear, smallfirms in Ohio can watch for legislativeaction that would lead to some potentially appealing new options. ■

Mr. DeMarco is vice president and director of the tax services group forthe regional accounting and businessconsulting firm of Meaden & Moore,headquartered in Cleveland.

PHOTO PROVIDED

The Jet Express IV, on its way to aCleveland Browns game last fall fromits new dock at Black River Landing inLorain.

Boat line’s expansiona smooth ride so far Lorain dock, Cleveland trips popular in trial runsBy JOEL [email protected]

The Put-In-Bay Boat Line’sexpansion into Lorain andCleveland early on has beena win-win-win-win, and it

shows no signs of faltering.The company worked out the

kinks and saw strong demand for itsCleveland trips; the cities of Lorainand Cleveland stand to benefit froman influx of visitors; and visitorsbenefit from an even easier trip intoCleveland or the islands.

The company and the Lorain PortAuthority worked in conjunction onthe expansion since mid-2008,when the Port Authority approachedthe Port Clinton-based companyabout taking better advantage of Lorain’s shoreline. Put-In-Bay BoatLine already had operated three JetExpress boats, seating 380, 395 and149 people, between Port Clintonand Sandusky and the Lake Erie Islands.

In late August, the Jet Express IVbegan weekend trips to the islandsand periodic trips to Cleveland, thelatter mostly based around theBrowns’ schedule.

“(Expanding further into Cleve-land) fit into our business plan,”said Put-In-Bay Boat Line directorof operations Lance Woodworth,who said the company previouslyhad made trips to Cleveland, origi-nating from the islands. “We wanteddock access closer to Cleveland; ifwe could get stationed closer to thecity, it would minimize our expenses.”

This year’s Lorain season will begin May 28 with an expandedschedule, including Wednesdaywine tastings, Friday night Clevelandtrips for Indians games (though passengers are not required to attendthe Indians game, only to be on theboat when it leaves North CoastHarbor), Sunday lazy-river cruises(July and August) and Browns shuttles.

Showing off their citiesBrowns shuttles provided the

biggest success in last year’s trial run;the Browns’ Oct. 25 game againstGreen Bay drew so much interest,Put-In-Bay Boat Line brought in oneof its bigger boats to haul 240 passen-gers to Cleveland. Mr. Woodworthnotes that was an anomaly; typically,those larger boats are unavailable forsuch fill-in duties.

The Port Authority owns 51% ofthe boat, and receives a dockage feefrom Put-In-Bay Boat Line and $1per ticket sold, while the companyis responsible for maintenance andupkeep of the boat. A portion of thefunding for the boat’s purchasecame from federal earmarks secured by U.S. Rep. Betty Sutton.

“This is very important to ourhard work to diversify Lorain’seconomy and take advantage of thelake,” said Richard Novak, the executive director of the Lorain PortAuthority. “It’s a tremendous opportunity to bring new businessand new people in.”

It’s a chance to show off theBlack River Landing area, whichfeatures green space, a yearly sum-

mer festival, a farmers’ market andnearby restaurants and small businesses. The hope is that whenCuyahoga County residents or others from Northeast Ohio departfor the islands from Lorain, ratherthan Port Clinton or Sandusky,they’ll discover Lorain’s perks andspread the word.

“The Jet Express in Lorain willshow visitors that Lorain is a greatdestination for outdoor recreation,”said Lynne Lisner, the marketingand communications manager ofthe Lorain County Visitors Bureau,“and is one of many new additionsthat will help us increase tourismand its economic impact.”

Meanwhile, for Cleveland, it’s notjust a ride to Cleveland Browns Stadium, but rather another chancefor infrequent visitors to check outdowntown’s newest attractions.

Both Mr. Novak and PositivelyCleveland vice president of marketingTami Brown said while the cruisesare based around sporting events,about 10% of passengers on eachtrip simply catch a ride to enjoy what Cleveland has to offer.

“This is a terrific product and service that will be a big benefit,”Ms. Brown said. “We love when residents get around in the region,and this is an easy way to do it.”

Navigation plansMr. Woodworth, from Put-In-Bay

Boat Line, said the company will take“baby steps” to gauge the receptionof its foray into Cleveland and Lorainbefore considering expanding, butgrowth always is a possibility.

With 50 trips scheduled this season from Lorain — compared to7,000 from other locations, accordingto Mr. Woodworth — the additionwill not make up a major portion ofthe company’s business this summer.

The current offerings, meanwhile,are just fine for Donnie Dombrosky,president of the Amherst BrownsBackers, whose group attends onegame a year and jumped at thechance to ride the boat last year.

“This year, people already arecontacting me about (taking the JetExpress),” said Mr. Dombrosky, aretired postal service worker. “Weenjoyed ourselves; we did what weusually do, and saved $40 on park-ing and get on and off the boat rightwhere we needed to be.” ■


Messrs. Hoffman and DiBiasiosaid independently that the team leftthe request open-ended, allowingthe firms to use their respectiveimaginations to improve the park.Weber Murphy walked through theballpark in April, submitted its planand was notified about two weeksago that it was out of the running,Mr. Hoffman said.

Mr. Hoffman, whose firm previ-ously did renovation work on Pro-gressive Field’s concession areas andcreated the Batter’s Eye Bar in centerfield, said his firm’s plan includedmore opportunities for fans to aidthe team’s green efforts, incorporatingmore of Cleveland’s ethnic cuisineinto the park’s food offerings and altering the underutilized luxurysuites, perhaps into more children’sareas.

A spokeswoman at Populous saidearly last week the Indians immi-nently were expected to announcean agreement with an architect. Askedwhether that architect was Popu-lous, the spokeswoman said, “Notnecessarily.” Populous has designed17 of Major League Baseball’s 30 stadiums, according to ballparksofbaseball.com.

Mr. DiBiasio said the team wasn’tthat close to an announcement,though he wouldn’t provide a specifictimeline. Subsequent calls to Popu-lous went unreturned.

Sweet suite ideas neededThe Indians have struggled filling

the stadium’s 121 suites and recentlyconverted two into a “presidentialsuite” behind home plate. This year,they also transformed a suite intotheir “FanCave,” featuring videogames, a billiards table, a wall ofhigh-definition televisions and other unique amenities.

This year’s glitziest offering is atransparent coating that, while it maynot clean up after its own applica-tion, promises to make removinggraffiti an easier chore for munici-palities, departments of transporta-tion and commercial property owners. A simple power washer canremove graffiti from the coating,even if the unwanted paint has beenallowed to cure for days.

Other new developments mightnot be as visible to the general public, but they’re aimed at some ofSherwin-Williams’ core markets. Forinstance, the company has debutedautomotive paints that do not requirebaking and can dramatically increasea body shop’s output, and marinepaints that can be applied directly towet and rusty ship hauls or oil plat-forms.

The roughly 300 chemical engi-neers and researchers at the techcenter produce about 30 patents ayear for Sherwin-Williams, Mr. Connor said. To get that sort of innovative output, he said, the company invests about 1.4% of itssales in research and development,outspending all or most of its com-petitors in this regard.

Growth in Sherwin-Williams’ssales also have meant more moneyfor R&D. Its sales last year were $7.1billion compared with $5 billion in1999. As a result, R&D expendituressteadily have risen over the decade,to $101.8 million in 2009 from $78.2million in 1999.

A different pathMr. Connor said there are two

approaches to investing in R&D inthe paint business. One, he said, is tofocus on developing technologiesthat will make the production ofpaint more efficient and less expen-sive.

“We’ve abandoned that approach,”he said.

Instead, Sherwin-Williams is going down the second path ofworking to develop paints that canperform better or do more things.Examples in the last few years havebeen paints that can absorb roomodors, or which can be applied intemperatures as low as 35 degrees toextend the work season for contrac-tors.

Such paints and coatings are often not inexpensive. The new anti-graffiti coating, for example, costsabout $75 per gallon and only coversabout half the area that would becovered by a gallon of paint.

But about 60% of the company’sbusiness comes from professionalssuch as commercial contractors,governmental entities and buildingmaintenance professionals. That audience, Mr. Connor said, fully realizes that spending an extra few dollars on a can of paint or a specialized coating is far betterthan spending many more dollars on preparation work, cleanup or increased maintenance costs.

For instance, Mr. Connor said, thecity of Los Angeles alone spends $28million a year removing graffiti, soapplying a coating that lasts 15 yearsand allows those maintenance coststo be cut dramatically probablymakes sense. It also makes sense,then, that Sherwin-Williams is courtingLos Angeles and other cities as newcustomers for the product.

Besides, Sherwin-Williams gets a


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BY THE NUMBERS

The R&D team at Sherwin-Williams’ tech centers produceabout 30 patents a year, whichtakes plenty of money. How thecompany does it:■ S-W invests 1.4% of its annualsales in research and development,which, according to the company, ismore than its competitors spend inthis area.■ The company’s growth over thepast decade has meant more money with which to work: S-Wspent $101.8 million in researchand development last year, upabout 30% over 1999, when itspent $78.2 million.

return on its R&D investment in otherways.

Innovations that first are sold toprofessional contractors often maketheir way into the company’s consumer products. And innova-tions that bring in new customers improve Sherwin-Williams’ ability tosell that same customer more prod-ucts, according to Mr. Connor andanalysts who follow the company.

“What you’re seeing here is a constant good stream of new prod-ucts — they lead the industry,” saidChuck Cerankosky, an analyst whofollows Sherwin-Williams for the institutional research firm NorthCoast Research in Cleveland.

“Stuff you see other companiesbragging about was often delivered(by Sherwin-Williams) to professionalcontractors years before,” Mr. Cer-ankosky said. “They’re not just apaint company. They’re a coatingscompany, and they’ve never forgottenthe importance of that.”

Eden for engineersMr. Cerankosky said Sherwin-

Williams has been correct so far inbetting that contractors will paymore for a better product that reduces labor costs. Consumersmight not care if they can paint in40-degree weather, he said, but it’s abig deal to commercial painters.

“Those are things only a contrac-tor would love,” he said. “The professional is considering a lot ofthings when he purchases a coating,not the least of which is will it do thejob, but the efficiency of the prod-uct.”

Cleveland continues to play a central role in the company’s inno-vation strategy. Sherwin-Williams hasclosed research facilities in Chicagoand Detroit in the last 10 years andmoved their work to Cleveland. Itmaintains other, smaller tech centersacross the world — more than 40 ofthem — but more than half of its 600R&D employees work in Cleveland,said company spokesman MikeConway.

“I’ve never brought an engineer in here on a day like today when they didn’t love the place,” Mr. Connor said.

Cleveland also might be the bestplace for Sherwin-Williams to findthe talent it needs, the CEO said. Thecompany draws engineers from theUniversity of Akron’s strong chemi-cal engineering program, and thestrong base of chemical companiesin Northeast Ohio also means thereis plenty of chemical engineering expertise in the area. ■

Indians: Bar settings received well elsewhereEntering a weekend home series

against the Detroit Tigers, the teamis last in Major League Baseball inattendance at 14,153 per game,more than 1,000 less, on average,than Toronto, the next-lowest. Lastyear, the Indians were 25th in themajors in attendance.

“We are currently working to develop a strategic plan that encompasses … the wants andneeds of our fans from a variety ofissues that matter to them most, including sightlines, culinary trends,comfort (and) the audio/visual experience to name a few,” Mr. DiBiasio said. He said the teamwants to keep Progressive Field“one of America’s premier ball-parks, one our fans will continue tobe proud to call their home.”

Part of an eventual master planmay involve incorporating morebar-like settings into areas wherethe playing field is visible, said MarkRosentraub, a former ClevelandState professor and now the endowedchair of the department of sportmanagement at the University ofMichigan.

The Indians have had successwith the Bud Light Party Deck in

right field, but Mr. Rosentraub saideven their club seating area alongthe first base line, which includesfood and non-alcoholic beverageswith the price of tickets, has a disad-vantage: Much of the best food selection is indoors, away from thefield.

Mr. Rosentraub said the Wash-ington Nationals, among otherteams, have had success with suchbar-like arrangements. Like the Indians’ party deck, Nationals Parkfeatures a bar/seating area in centerfield where a ticket includes $20 forfood purchases.

“They’re looking at their under-performing areas and asking, ‘Howcan we restructure?’” Mr. Rosen-traub said. “You’re not physically altering it to where, in five years ifthings change, you can’t go backand undo it.”

According to The New YorkTimes, the Baltimore Orioles alsoare considering changes to their stadium, Oriole Park at CamdenYards, which opened in 1992 andkicked off a building boom of new-era stadiums. The Orioles’ stadiumseats over 48,000, or about 6,000more than Progressive Field. ■



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LARGEST MANUFACTURING COMPANIESRANKED BY FTE LOCAL EMPLOYEES(1)

Rank

CompanyAddressPhone/Web site

Full-timeequivalent

localemployees

Full-timeequivalentemployees

in OhioParent company

HeadquartersLocal manufacturing

facilities Products manufactured locallyTop local executiveTitle

1Timken Co.1835 Dueber Ave., S.W., Canton 44706(330) 438-3000/www.timken.com

3,700 4,500 Canton Canton Special alloy steel and bearing components James W. Griffithpresident, CEO

2Swagelok Co.29500 Solon Road, Solon 44139(440) 248-4600/www.swagelok.com

3,600 3,600 Solon Solon, Highland Heights,Strongsville Industrial fluid system components Arthur F. Anton

president, CEO

3Ford Motor Co.One American Road, Dearborn 48126(800) 392-3673/www.ford.com

3,500 6,180 Ford Motor Co.Dearborn, Mich.

Avon Lake, Brook Park (3),Walton Hills

Finished vehicles (E-series vans), vehicleengines, vehicle transmissions, vehiclestampings

NA

4Sherwin-Williams Co.101 Prospect Ave., NW, Cleveland 44115(216) 566-2000/www.sherwin-williams.com

3,006 3,592 Cleveland Cleveland, Bedford Heights Coatings and related products Christopher M. Connorchairman, CEO

5The Babcock & Wilcox Co.20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203(330) 753-4511/www.babcock.com

2,227 2,558McDermott InternationalInc.Houston

Barberton, Copley, EuclidComponents, parts and tubes for powerplants, industrial and governmentapplications

Richard L. Killion, president, COO,Babcock & Wilcox PowerGeneration Group Inc.

6Parker Hannifin Corp.6035 Parkland Blvd., Cleveland 44124(216) 896-3000/www.parker.com

2,164 NA Cleveland

Akron, Avon, Elyria,Fairlawn, Kent, Mentor,Ravenna, Strongsville,Wadsworth, Wickliffe,Youngstown

Valves, hoses, fittings, actuators, filters,pumps for pneumatic/hydraulic applications,components and systems used on aircraft

Donald E. Washkewiczchairman, president, CEO

7The Lubrizol Corp.29400 Lakeland Blvd., Wickliffe 44092(440) 943-4200/www.lubrizol.com

2,072 2,072 Wickliffe Avon Lake, Chagrin Falls,Painesville

Lubricant and fuel additives, rubberadditives, plastics, personal care products

James L. Hambrickchairman, president, CEO

8Rockwell Automation Inc.1 Allen-Bradley Drive, Mayfield Heights 44124(440) 646-5000/www.rockwellautomation.com

1,794 1,898Rockwell AutomationInc.Milwaukee, Wis.

Twinsburg, WarrensvilleHeights NA Steven A. Eisenbrown

sr. vp, architecture and software

9Bridgestone Americas Inc.1200 Firestone Parkway, Akron 44317(330) 379-7000/www.bridgestoneamericas.com

1,715 1,935Bridgestone AmericasInc.Nashville, Tenn.

Akron, Brook Park,Columbiana, Findlay,Sandusky

Vibration-isolating rubber, foam products,race tires

Yasutaka Enokipresident, Bridgestone AmericasProduct Development

9Eaton Corp.1111 Superior Ave., Cleveland 44114(216) 523-5000/www.eaton.com

1,715 2,971 Cleveland Brooklyn, Parma, Aurora,Euclid

Aerospace, hydraulic and electricalcomponents

Alexander M. Cutlerchairman, president, CEO

11Nestle Prepared Foods Co.30003 Bainbridge Road, Solon 44139(440) 349-5757/www.nestleusa.com

1,626 1,626Nestle S.A.Vevey, VaudSwitzerland

Solon Stouffer's, Lean Cuisine prepared frozenfood meals

Bob Leonidaspresident, CEO,Nestle Prepared Foods Co.

12ArcelorMittal3060 Eggers Ave., Cleveland 44105(216) 429-6000/www.arcelormittal.com

1,612 2,397 ArcelorMittalChicago, Ill. Cleveland, Warren Steel: hot-rolled, cold-rolled, coated sheet,

carbon and alloy plate, tubularTerry Fedorgeneral manager,ArcelorMittal Cleveland

13Avery Dennison8080 Norton Parkway, Mentor 44060(440) 534-6000/www.averydennison.com

1,512 2,154 Pasedena, Calif.Painesville, Mentor,Concord, Strongsville,Brunswick

Pressure-sensitive roll materials; industrial,medical, automotive adhesive products andtapes; digital media

Donald Nolangroup vice president,Roll Materials Worldwide

14General Motors Corp.300 Renaissance Center, Detroit 48265(313) 556-5000/www.gm.com

1,400 10,500 Detroit Lordstown, Parma Vehicles, automotive parts andtransmissions

Al McLaughlinplant manager,Parma Metal Center

15Scott Fetzer Co.28800 Clemens Road, Westlake 44145(440) 892-3000/www.berkshirehathaway.com

1,386 1,626 Berkshire HathawayOmaha, Neb.

Avon, Bedford, ChagrinFalls, Cleveland, Wooster

Vacuums, medical supplies, electricalenclosures and supplies and utility truckbodies

Kenneth J. Semelsbergerchairman

16Ben Venue Laboratories Inc.300 Northfield Road, Bedford 44146(440) 232-3320/www.benvenue.com

1,314 1,279 Boehringer IngelheimIngelheim, Germany Bedford Injectable pharmaceuticals Thomas J. Murphy

president, CEO

17Republic Engineered Products Inc.2633 Eighth St., NE, Canton 44704(800) 232-7157/www.republicengineered.com

1,310 1,310 Grupo SimecGuadalajara, Mexico Lorain, Canton, Massillon SBQ steel bars and billets and value added

bar finishingJaime Vigilpresident, CEO

18Invacare Corp.One Invacare Way, Elyria 44035(440) 329-6000/www.invacare.com

1,297 1,290 Elyria Elyria Custom power wheelchairs, seating, custommanual wheelchairs

A. Malachi Mixon IIIchairman, CEO

19Alcoa1600 Harvard Ave., Cleveland 44105(216) 641-3600/www.alcoa.com

1,245 1,245 Alcoa Inc.New York, NY

Cuyahoga Heights,Cleveland, Barberton

Automotive, truck, aerospace wheels,aerospace parts, industrial products

William F. Christopherexec. vp, Alcoa; pres., AlcoaEngineered Products & Solutions

20The J.M. Smucker Co.(2)1 Strawberry Lane, Orrville 44667330-682-3000/www.smuckers.com

1,200 NA Orrville Orrville Fruit spreads and toppingsTimothy P. Smucker, chairman, co-CEO; Richard K. Smucker,exec. chairman, co-CEO

21Delphi Packard Electrical/Electronic Architecture5725 Delphi Drive, Troy 48098www.delphi.com

1,086 1,086 Delphi Corp.Troy, Mich. Warren, Vienna, Rootstown NA

James A. Spencer, vp and pres.,Delphi Packard Electrical/ElectronicArchitecture

22Philips Healthcare595 Miner Road, Highland Heights 44143(440) 483-3000/www.philips.com/healthcare

1,025 NARoyal PhilipsElectronicsAmsterdam, TheNetherlands

Highland HeightsImaging systems including those forcomputed tomography (CT), nuclearmedicine and magnetic resonance (MR).

James Fultonsr. vice president,Imaging Systems

23GE Lighting (unit of GE Appliances & Lighting)1975 Noble Road, East Cleveland 44112(216) 266-2222/www.gelighting.com

1,000 2,050 GEFairfield, Conn.

Cleveland, East Cleveland,Ravenna Lighting products Michael B. Petras Jr.

president, CEO, GE Lighting

24Goodrich Landing Gear8000 Marble Ave., Cleveland 44105(216) 341-1700/www.goodrich.com

890 1,605 Goodrich Corp.Charlotte, N.C. Cleveland Landing gear Mike Brand

president

25Myers Industries Inc.1293 S. Main St., Akron 44301(330) 253-5592/www.myersindustries.com

871 999 Akron Middlefield, Wadsworth,Jefferson

Plastic containers, plastic planters andnursery grower flats, plastic under-hood carparts

John C. Orrpresident, CEO

26Severstal Warren Inc.999 Pine Ave. SE, Warren 44483(330) 841-8218/www.severstalna.com

800 800Severstal NorthAmericaDearborn, Mich.

Warren Iron and steel for the further rolling andprocessing of light flat rolled steel products

Wilbur Winlandvice president, general manager

See LIST Page 24




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LARGEST MANUFACTURING COMPANIESRANKED BY FTE LOCAL EMPLOYEES(1)

Rank

CompanyAddressPhone/Web site

Full-timeequivalent

localemployees

Full-timeequivalentemployees

in OhioParent company

HeadquartersLocal manufacturing

facilities Products manufactured locallyTop local executiveTitle

27Steris Corp.5960 Heisley Road, Mentor 44060(440) 354-2600/www.steris.com

778 856 Mentor Mentor Biological and chemical indicators,sterilization systems

Walter M. Rosebrough Jr.president, CEO

28Luk USA LLC3401 Old Airport Road, Wooster 44691(330) 264-4383/www.lukusa.com

750 NAThe Schaeffler GroupHerzogenaurach,Germany

Wooster Torque converters, torque converterclutches

Marc McGrathpresident

29PolyOne Corp.33587 Walker Road, Avon Lake 44012(440) 930-1000/www.polyone.com

729 770 Avon Lake Avon Lake, Massillon,Norwalk Specialized polymer materials Stephen D. Newlin

chairman, president, CEO

30Lockheed Martin Akron1210 Massillon Road, Akron 44315(330) 796-2038/www.lockheedmartin.com

700 700 Lockheed MartinBethesda, Maryland Akron Support products corporate-wide Rick Perez

vice president, Akron site lead

30Newell Rubbermaid3200 Gilchrist Road, Mogadore 44260(330) 784-7141/www.newellrubbermaid.com

700 NA Newell Rubbermaid Inc.Atlanta NA Rubbermaid food and home products Joseph Soldano

director, Ohio operations

32Step2 Co. LLC10010 Aurora-Hudson Road, Streetsboro 44241(330) 656-0440/www.step2.com

699 699 Step2 Holdings LLCStreetsboro Streetsboro Plastic, rotationally molded childrens’ toys

and home and garden productsJack Vresicspresident, CEO

33PPG Industries Inc.3800 W. 143rd St., Cleveland 44111(216) 671-0050/www.ppg.com

660 660 Pittsburgh Cleveland, Strongsville Automotive coatings Richard Baueroperations director, Americas

34Associated Materials3773 State Road, Cuyahoga Falls 44223(330) 929-1811/www.associatedmaterials.com

612 641 Cuyahoga Falls Cuyahoga Falls Windows Thomas N. Chieffepresident, CEO

35Colfor Manufacturinglocations in Minerva, Malvern and Salemwww.aam.com

578 578American Axle &Manufacturing Inc.Detroit

Malvern, Minerva, Salem Forged and machined products Peter Griffinplant manager, Colfor

36Meggitt Aircraft Braking Systems Corp.1204 Massillon Road, Akron 44306(330) 796-4400/www.aircraftbraking.com

535 535 Meggitt PLCAkron Akron Aircraft wheels, brakes and related systems

J.J. Williams, executive vicepresident and general managerglobal operations

37MFG - Molded Fiberglass Co.2925 MFG Place, Ashtabula 44005(440) 997-5851/www.moldedfiberglass.com

525 525 Ashtabula AshtabulaFiber glass reinforced parts for theautomotive and heavy truck markets,bathware

Richard S. MorrisonCEO

38The Wooster Brush Co.604 Madison Ave., Wooster 44691(330) 264-4440/www.woosterbrush.com

520 520 Wooster Wooster Paintbrushes, rollers, painting equipment Allan Roddpresident

Lincoln Electric Holdings Inc., which is usually on this list, did not respond by deadline. Source: Information is supplied by the companies unless footnoted. Crain's ClevelandBusiness 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 includeomitted information or clarifications in coming issues. (1) Employee numbers as of March 31, 2010. (2) Employee number is from The Daily Record, Oct. 23, 2009.

RESEARCHED BY Deborah W. Hillyer


general fund allocations to commu-nities.

Voters last November approved aconstitutional amendment that willbring four Las Vegas-style gamblingcasinos to Ohio, one each in Cincinnati,Cleveland, Columbus and Toledo.

Penn National Gaming Inc. ofWyomissing, Pa., will own and operatethe casinos planned for Toledo andColumbus, investing at least $600 million to build the two facilities. RockVentures LLC, a Livonia, Mich., company controlled by Dan Gilbert,principal owner of the ClevelandCavaliers and Quicken Loans Inc., will own casinos in Cleveland andCincinnati.

Language in the constitutionalamendment requires the Legislatureto pass enabling legislation withinsix months of passage — giving theLegislature a June 3 deadline, Rep.Yuko said.

Details, detailsHowever, legislators last week still

were crafting the rules for appointingmembers to and operating the OhioCasino Control Commission. Theconstitutional amendment set thecommission at seven members appointed by the governor and approved by the Senate. However,those members must include alawyer, a certified public accountantand a law enforcement professional.The board also must include a resi-dent of one of the four counties thatwill host casinos and no more thanfour members of any political party.

“So we could end up looking for aDemocratic lawyer from Cleveland,”Rep. Yuko said jokingly.

The bill also is likely to include provisions that would allow casino operators — in particular Rock Ventures, which has announced plansfor a $600 million Cleveland casino —to begin temporary operations beforeconstruction of the permanent casinoscan be completed. Rep. Yuko said hehopes Rock Ventures will open whathe called a “Phase One” casino in theHigbee Building in downtown Cleve-land that can operate until 2013, whenthe permanent casino is scheduled toopen.

Another sticking point for the


Casino: Revenue allocation concerns communitiescontinued from PAGE 1 legislation is whether to allow the

casinos to get 24-hour liquor licenses,a measure that is opposed by manybar and restaurant operators. Casinosin states bordering Ohio do not permit 24-hour liquor. Only Nevadaand New Jersey permit the practice, soRep. Yuko doesn’t think it will fly here.

Rep. Yuko said he floated briefly theidea of allowing smoking in the casinos,despite Ohio law that forbids nearly allindoor smoking in the state.

“I was told, ‘Don’t even thinkabout that,’” he said.

Follow the moneyArea mayors, however, are more

concerned about one issue thatwon’t be in this casino-enabling

legislation — how the Legislaturewill view the casino revenue thatflows to their communities.

During the campaign to pass thecasino amendment, a potential taxwindfall made the issue attractive tomany public officials because itwould bring new tax revenue intotheir communities.

Now, however, they are concernedthat with an extremely tight state budget on the horizon in 2011, theLegislature will cut state Local Govern-ment Fund money in the next statebudget and that lawmakers will offsetall or part of those local allocationsfrom the general fund by how muchparticular communities are receivingfrom the casino tax.

“The rumor that has been circu-lating is that whatever money webring into our area” from casino taxes, the Legislature “will cut us onthe local government fund,” saidSouth Euclid Mayor Georgine Welo.

The tax rate on gaming revenueswill be 33%, which the Department ofTaxation has estimated could bring in $650 million in new tax revenue annually, once all four casinos are operating.

School districts will get 34% of therevenue, and 10% would go to operatethe gaming commission, law enforce-ment training and gambling addictioneducation.

But 51% of the total would be splitamong the 88 county governments,

with the state’s eight largest cities receiving half their county’s allocationand the four cities hosting casinos receiving additional tax money.

In the case of Cleveland, its entireshare of Local Government Fundmoney could be wiped out. The cityreceived $4.67 million of that money in2009, according to a state tax depart-ment spreadsheet. The department’sestimate of the city’s annual share of casino tax revenue when all fourcasinos are operating is $29.7 million.

Discussion of this issue will needto wait until the Legislature grappleswith the next two-year budget, according to Rep. Yuko.

“It’s not an issue we can deal with atthis point,” he said. ■

Law firm expandswith N.Y. office

The law firm Roetzel & Andress has moved intothe Big Apple.

The new office, at 245 Park Avenue in New York City, is an addition to the firm’s offices inOhio, Florida and Washington, D.C.

The firm said it has a numberof attorneys licensed in New Yorkand the move helps the firm expand its geographic footprint inthe eastern part of the country.

“New York City serves as thenation’s financial capital, and theneeds of the companies residentand transacting business thereare well-matched with our firm’sstrengths,” chairman and CEOTimothy J. Ochsenhirt said in astatement.

The firm did not say how manyattorneys will be based in thenew office. — Arielle Kass

ON THE WEB Story from www.CrainsCleveland.com.



REAL ESTATEContact: Genny DonleyPhone: (216) 771-5172Fax: (216) 694-4264E-mail: [email protected]

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For Brochure, Terms of Sale & Bid Packet Call: 216-360-0009Gordon Greene, OH RE Broker & Auctioneer Michael Berland - Court Appointed Auctioneer

CHARTWELL AUCTIONS/CHARTWELL GROUP, LLC

AUCTION JUNE 8OFFERED REGARDLESS OF PRICE BY COURT ORDER!

OFFERED WITH A BELOW-MARKET PUBLISHED RESERVE!

400 N. State St., Medina, OH 4425610,831 Sq. Ft. Show-room/W a r e h o u s e

on 2.95-Acres; Zoned I-1. 18' Ceilings; 2 Drive-Ins; 1 Dock; minutes from I-271, I-71 & I-80 (Ohio Turnpike).Suggested Opening Bid: $50,000300 N. State St., Medina, OH 44256

12,890 Sq Ft. Former Concrete Block Plant on 3.42-Acres. 16'-22' Ceilings;

Rail Served; Multiple Docks.Suggested Opening Bid: $20,000800-820 Progress Dr., Medina, OH 44256

10,950 Sq. Ft. Metal Panel Maintenance/

Warehouse on 22+ Acres; Zoned I-1. Minutes from I-71, I-271, I-76 & I-80 (Ohio Turnpike).Suggested Opening Bid: $45,000

10232 Pifer Rd., Wadsworth, OH 44281Former Ready Mix Concrete Plant with 5,112 Sq. Ft. Truck Storage Building on

8.83-Acres; Zoned I-2. Minutes from I-71, I-271, I-76 & I-77.Suggested Opening Bid: $15,000

1151 W. Bagley Rd., Berea, OH 44017Zoned BRCD (Berea Rd. Commercial) Frontage on W. Bagley & Berea Ind. Pkwy. Located minutes from Hopkins Airport, I-71, I-480 & I-80 (Ohio Turnpike)Suggested Opening Bid: $30,000

N. State St., Medina, OH 44017(Adjacent to the North End of 400 N. State St.). 4.6-Acre Development Site. 350' of Frontage on N. State St., Zoned I-1; minutes from I-71, I-271, I-76 & I-80 (Ohio Turnpike).Suggested Opening Bid: $10,000

2301 Progress St., Dover, OH 4462214,178 SF Corp. Office on 6-Acres. Contact Broker for Current Occupancy

Info. Adjacent to New I-77 Schneider’s Crossing Interchange. Easy Access SR 250.Suggested Opening Bid: $150,000

3251 Brightwood Rd., Midvale, OH 4465326,560 Sq. Ft. Ind./Warehouse on 5-Acres;

20' Ceilings; 6 Drive-Ins & 1 Dock, Fenced lot. Easy Access to I-77 & SR 250.Suggested Opening Bid: $45,000

38322 Apollo Pkwy., Willoughby, OH 44094 - 20,334 SF Office/Warehouse on

1.2 Acres; Zoned L-1. M i n u t e s from I-90, Rt 2 & I-271; 1

Drive-In & 1 Loading Dock. 5,000 SF 2nd Floor Lease in Place.Suggested Opening Bid: $145,000ON-SITE INSPECTIONS: May 20, 27

& June 3, 1:00 - 3:00 PM

2155 St. Clair & 2126 Hamilton Cleveland, OH 44114 - SOLD AS ONE PARCEL.St. Clair: 6,500 Sq. Ft. Retail, Office, Warehouse with Dock & 2 BR Rental Apt., Zoned: Com. Hamilton: 4,000 Sq. Ft. Garage/Warehouse Bldg. 1 Drive Thru Bay & 1 Drive-In Door.Suggested Opening Bid: $45,000

ON-SITE INSPECTIONS: May 19, 26 & June 2, 10:00 AM- 12:00 NOON

Mohican River Inn: over-looking river, in Canoe & Camping Capital of Ohio. 16124 Country Rd. 23, Loudonville, OH 44842. Exit 204 off I-71, S. on OH-83 to OH-3, SW. to Wally Rd., Scenic Byway (CR 23), E, 5 miles to Site. Built 1980’s & Recently Renovated. Room types include 42 Double-Doubles; 6 Kings including two

Jacuzzi Suites; Owners Townhome; & Addl. Apartment. Event Center for groups to 150; The Pavilion; The Meadow; Fern Landing; & Stargazer Playground. Restaurant w/Liquor License and Commercial Kitchen.— Lakeview Holdings Directs Sale —PUBLISHED RESERVE: $397,00 BIDDING COMMENCES @ $260,000

ON-SITE INSPECTIONS: May 21, 28, & June 5: 2 - 4 PM

www.mohicanriverinn.net

Inspections for All the Above Properties at 400 N. State St., Medina, OH May 20, 27 & June 3, from 1:30 to 3:30 PM

On-Site Inspections for Both the Above Properties May 20, 27 & June 3, from 10:00AM to 12:00 NOON

FORMER SUTTON HARDWARE BUILDINGS

FORMER LAKE BUSINESS PRODUCTS HEAD QUARTERS

MOHICAN RIVER INN & EVENT CENTER — Loudonville, OH

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Real Estate Auction

Bambeck Auctioneers Inc.www.bambeck.com

3618 Apache St NW, UniontownStark County Parcel 22-02573

C o u r t - O r d e r e d

May 26 • 11:00 AM On-Site

50,000 Sq.Ft. Multi-TenantBuilding on 3.4 Acres

Buy @$5/Sq.Ft.

CRESCO real estate

Available Office SpaceINVESTMENT OPPORTUNITY - Class “A” Office and Innovation Center consisting of97,845 sf - leased thru 2018 - Bob Garber, SIORSUBLEASE OPPORTUNITY - attached parking - full floor - 19,322 sf - below market rates -$13.50/sf as-is - term thru 8/31/2014 private offices or open areas - Patrick Reardon, SIORBEACHWOOD SUBLEASE - recently renovated offices - below market lease rate - 4,595 sf -large open floor plan - signature Chagrin Blvd. building - John Glasstetter, SIOR4,500 SF 2 STORY COMMERCIAL BUILDING AT FLEET & I-77 - divisible with separateentrances - perfect live/work layout - sale or lease - Tom West, SIORWHY RENT? PERFECT 2006 OFFICE CONSTRUCTION - 2,500-14,000 sf available - digital monument on Route 82 (Northfield) - [email protected] - Rico Pietro, SIORAvailable Industrial SpaceGREAT SUBLEASE OPPORTUNITY - or possible sale - 170,000 sf - high ceiling - 8 docks- rail - sprinkler - office - Armand Aghajanian80,456 SF FEATURE RICH MANUFACTURING FACILITY - available for lease/sale inValley View - 14,000 sf of office - multiple cranes - in excellent condition - Simon Caplan,SIOR, Eliot Kijewski or George Pofok, SIOR

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CRANE BUILDINGPerry, Ohio

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NOTICE OF BUSINESS OPPORTUNITYThe Cleveland Airport System of the City of Cleveland is soliciting proposals from qualified persons and firms interested in undertaking a market analysis and the development of site specific implementation plans for selected properties at Cleveland Hopkins International and Burke Lakefront airports, consistent with the master plans for the air-ports, and the City’s North Coast Harbor. Interested parties may obtain a copy of the Request for Qualifications, free of charge, under the Business Information section at www.cleve-landairport.com; by calling (216) 265-6086; by written request ad-dressed to Procurement Section, Department of Port Control, 5300 Riverside Drive, P. O. Box 81009, Cleveland, Ohio 44181-0009 or by e-mail to [email protected].

Proposals are due by 4:00 p.m. EDT Wednesday, June 30, 2010

NOTICE OF BUSINESS OPPORTUNITYThe Cleveland Airport System of the City of Cleveland is soliciting proposals from qualified persons and firms interested in providing and implementing a software solution to streamline the process of lease, property, space and contract administration at Cleveland Hopkins International and Burke Lakefront airports. Interested parties may obtain a copy of the Request for Proposal from www.clevelandairport.com under the Business Information section. If you have any difficulty accessing the website, please email [email protected] to request a copy of the Request for Proposal.

Proposals are due by 4:00 p.m. EDT Friday, June 25, 2010

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Big boost for the EcoBoost■ Good news for Ford workers at the company’s Brook Park engine plant: The3.5-liter EcoBoost engine the plant beganmaking last year is a big hit with consumers.

“We are winning import buyers with EcoBoost,” says Amy Marentic, Ford’s NorthAmerican group marketing manager for carsand crossovers.

“Even better, this new customer isyounger and more affluent,” she said.

Since August, Ford has sold more than10,000 EcoBoost-equipped vehicles inNorth America. The engine isavailable on the 3.5-liter V-6 of-fered in the Ford Taurus SHOand Ford Flex and on LincolnMKS and Lincoln MKT.

In a recent survey, 100% ofLincoln MKS owners said theywere satisfied with the engine, according tothe automaker, which said demand for vehi-cles with the engine “continues to meet orexceed Ford’s internal sales expectations,”

The Brook Park plant can use the support— the United Auto Workers union hopes toconvince Ford to make still more engines atthe plant in the future. — Dan Shingler

Try dipping into your own wallets, judge tells lawyers■ Judge Pat E. Morgenstern-Clarren is keepingan eye on the books.

The U.S. Bankruptcy Court judge in Cleve-land warned attorneys last Thursday, May 6,in AmFin Financial Corp.’s bankruptcy case to

change their work schedules and eating habitsif they continued to feel the need to chargeclients for dinners and late-night taxi rides.

“It makes my antennae stand up,” the judgesaid of some billing practices and the out-of-pocket expenses billed to some clients. “I generally do not believe that’s an expense thatshould be borne in a creditor case. Come towork in daylight, leave in daylight, bring yourlunch.”

Judge Morgenstern-Clarren went on to tellsenior attorneys it was their responsibility to

mentor younger associates, sayingthey should not be using the

AmFin case to make up for bottom-line pressure.

“This case is not the answerto their billable hours problem,” she said.

Judge Morgenstern-Clarrennoted that one attorney had not

charged in increments less than an hour,and urged lawyers to pay attention tocharges that were submitted.

The case involves the holding companyformerly known as AmTrust Financial Corp.It filed for bankruptcy last Nov. 30, days before AmTrust Bank failed and was takenover by New York Community Bank with assistance from the Federal Deposit Insur-ance Corp. — Arielle Kass

In the world of interns, this shop is near the top■ Liggett Stashower’s internship programhas bested those of corporate conglomer-ates such as Disney, ESPN, Google, The NewYork Times — and even the White House.

According to InternshipKing.com, an online internship community, the Cleveland-based branding firm’s program was votedfourth among the 50 best company internshipprograms.

The top three were Intuit, Sirius XM andMoosejaw Mountaineering and BackcountryTravel Inc.

Liggett said its internship program is successful because it immerses interns intothe business; therefore, interaction and team-work are large parts of the experience. Mentors also take interns to local TV and radio stations, printing companies, photog-raphy studios and networking events to learnfirsthand more about the industry.

Liggett each year hires six to 10 juniors andseniors from colleges nationwide as interns.The 60-employee agency employs 10 formerinterns. — Kathy Ames Carr

COSE, SBA play matchmakers■ The Small Business Administration and theCouncil of Smaller Enterprises have enteredthe matchmaking game.

For the fifth time, the groups are spon-soring a series of 15-minute, pre-arrangedmeetings for small businesses with morethan 40 buyers such as NASA, the Environ-mental Protection Agency, the ClevelandClinic and Diebold Inc.

Most of the 1,800 spaces for the event thisTuesday and Wednesday, May 11 and 12, are gone; those that remain are mainly in construction. The meetings will be held atBrowns Stadium. For more information, visithttp://tiny.cc/hti08. — Arielle Kass

WHAT’S NEW

COMPANY: Precision Laser Therapy,BeachwoodPRODUCT: Low-level laser therapy

Precision Laser Therapy is using a technologydeveloped in the 1960s to treat a problemthat’s timeless: hair loss.

The company says its laser therapy systemhas 20 Class IIIA lasers, 190 red LEDs and 171infrared LEDs housed in a large plastic hood(similar to a hair dryer) that directs light on thescalp. “The combination of specially configureddiodes and individual lasers awakens cells within the hair follicle from dormancy and stim-ulates cell metabolism without causing damageor injury to tissue,” Precision Laser says.

The system uses an illuminated camerawand that obtains magnified images of scalpand hair. Its database captures a user’s infor-mation and treatment details, and it recordsimages required to document progress in re-growing hair.

For information, visit www.precisionlasertherapy.com.

Send information about new products to managing editor Scott Suttell [email protected].

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK MAY 3 – 9

The big story: Cleveland Mayor Frank Jacksonhopes to work amicably with Continental Airlines as it merges with United Airlines. Butthe mayor said his first priority is protecting thelevel of air service that passes through ClevelandHopkins International Airport and the jobs ofthe people who work there. Mayor Jackson saidhe spoke with Continental CEO Jeffery Smisekprior to the May 3 merger announcement andthat Mr. Smisek has agreed to meet with himsoon to discuss Hopkins’ role in the merged airline. “We will protect our interests,” the mayorsaid. “Even though we have had a great relation-ship (with Continental) over the years, it is busi-ness and we will be looking out for our interests.”See our editorial, Page 10, and article, Page 3.

Down to business: Voters by a wide marginapproved state Issue 1, a $700 million bond issue for Ohio’s Third Frontier technology initiative. The measure, pitched as a job-creatorwith a proven track record since the introduc-tion of the Third Frontier program in 2002, wonthe support of 62% of voters. The victory extendsbond money for the program through 2016.

New at the helm: The Cleveland-CuyahogaCounty Port Authority has a new CEO —William D. Friedman, a consultant to severalport authorities and former CEO of the Ports of

Indiana. The port authorityboard voted unanimously tohire Mr. Friedman. He offi-cially will join the operator ofthe Port of Cleveland on June1. The port authority hasbeen without a permanentleader since last November,when Adam Wassermanresigned abruptly amid concerns about the authority’s

financing and expansion plans. The new portauthority CEO will be paid $200,000 a year. Mr.Wasserman was paid $283,000 a year.

In focus: NorTech has decided upon its top advanced energy priorities. The regional tech-nology advocacy group now will put more emphasis on positioning Northeast Ohio to become a hub for technologies related to electricvehicles, storing electricity, controlling its distri-bution and turning waste into energy. NorTechalso said it was awarded a $300,000 federal grant thatit will use to create “roadmap” plans meant toguide the region’s efforts to build industries relatedto each of those four technology categories.

Kindred spirits: Publicly traded KindredHealthcare Inc. of Louisville, Ky., bought StratfordCommons, a nursing, rehabilitation and assisted-living facility in Glenwillow. Terms of the transac-tion were not disclosed. Stratford Commons oper-ates 105 nursing and rehabilitation center beds and136 assisted-living beds. It offers skilled nursing, rehabilitation and assisted-living services for short-term, post-acute rehabilitation stays. Kindred saidit has begun renovations of Stratford Commons.

Big investor on board: Cedar Fair Enter-tainment Co. reached an agreement with its largestunitholder that will allow Q Investments of FortWorth, Texas, to be an active participant in thecompany’s selection of new directors. As part of theagreement, Q Investments, a pair of hedge fundsthat led the opposition to Cedar Fair’s now-dropped bid to be acquired by private equity firmApollo Global Management, will dismiss a lawsuitit filed April 29 in Delaware against Cedar Fair. Sandusky-based Cedar Fair will increase its boardto nine members from seven following the compa-ny’s 2010 meeting of unitholders on June 7.

To keep up with local business news as it happens, visit www.CrainsCleveland.com.


Excerpts from blog entries on CrainsCleveland.com.

BEST OF THE BLOGS

The end is near — for thosehuge muffins at Au Bon Pain■ The Cleveland Clinic is helping the AuBon Pain restaurant chain make its menu alittle healthier.

Nation’s Restaurant News reported thatAu Bon Pain is testing miniaturebaked goods at six stores inBoston, Chicago and Cleve-land. The smaller pastriesare half the size of Au BonPain’s regular baked goods.There currently are fiveitems being tested, includingsmall muffins and croissants.Each item is priced around $1.19,slightly more than half the price of a regular-size pastry.

Ed Frechette, senior vice president ofmarketing at Au Bon Pain, told the newspaperthe idea is the result of a request from doctors at the Clinic, where the 220-unit AuBon Pain operates a restaurant.

“We have a good relationship with (theClinic), and they really wanted us to providehealthier baked goods,” he said. “We agreedthis would be a good fit, though we still offer full-sized pastries as well.”

Score another one for the fatbusters atthe Clinic.

Forest City development aidsa D.C. neighborhood’s rebound■ A Washington, D.C., neighborhood hastaken a turn for the better, in part with thehelp of Cleveland-based Forest City Enter-prises.

For 50 years, Southwest Washington “wasdivided in half by a mall and an office complexthat withered with age,” The WashingtonPost wrote. “Like the freeway that isolates

the neighborhood from downtown, WatersideMall left its community without a center.”

But today, The Post said, as a result of a redevelopment project led by Forest City, “The mall is gone, two gleaming glassoffice towers with a splashy ground-floorSafeway supermarket have risen in its place and the road that was mothballed to build it is back, with wide sidewalks forpedestrians.”

A pedestrian-friendly, mixed-use projectcalled Waterfront Station is thefirst of three legs of an $800 mil-lion redevelopment of 1.2 mil-lion square feet for offices, thesame amount of residential

space and at least 110,000square feet devoted to shops

and restaurants, The Post reported.Forest City, which is developing

Waterfront Station with Vornado/Charles E. Smith, is still trying to line up financing for the second phase.

Would you fear the tax manless if he were an Akron nerd?■ The coming TV Land series ”Hot in Cleve-land” is generating lots of interest here forobvious reasons, but it might not be theonly show set in Northeast Ohio availablefor your viewing pleasure.

In an April 30 roundup of pilot season,when the television networks sift throughdozens of sample episodes to determinewhat will be on TV in the fall, The Wall StreetJournal highlighted a show called “TaxMan,” which is described as “a workplacecomedy set at an Internal Revenue Serviceoffice in Akron.”

The formula is a “nerdy version” of “30Rock,” and it boasts some brand-name talent: Ron Howard and Brian Grazer are executive producers, and Martin Short isone of the stars. Brent Forrester, a writer on“The Office,” wrote the pilot.

Friedman



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