Crain's Cleveland Business

By SCOTT [email protected]

Jeff Christian lived the high lifebefore he was brought low bydrugs, alcohol and what henow describes as “an ego that

was out of control.”His world today is very different.

Prison has a way of doing that.Mr. Christian used to be a big

shot. He was the man who built executive search firm Christian &Timbers (now known as CT Part-ners) into a national powerhousethat, most famously, handled thesearch that placed Carly Fiorina inthe CEO suite at Hewlett-Packard in1999. Mr. Christian was quoted

frequently in The Wall Street Journaland other national publications,did work for blue-chip technologyclients including Microsoft andspent more time in Silicon Valley andon the road than he did at home.

“My whole life was about moneyand success,” he said in an inter-view last week.

That changed in December 2006,

when Mr. Christian was indicted onreckless homicide and involuntarymanslaughter charges. The chargesstemmed from the drug overdosedeath the previous spring of 31-year-old Thomas Wasil, who hadattended a party at Mr. Christian’sAurora home.

The tragedy pulled back the cur-tain on Mr. Christian’s private life,which was in turmoil due to drugand alcohol addiction. On Oct. 22,2007, Mr. Christian received athree-year sentence for his role inMr. Wasil’s death; he enteredprison that day and, under terms ofa plea deal, served exactly one yearin jail.

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THE RISE, UNRAVELING AND RETURN OF JEFF CHRISTIAN Privateequityfirms onthe prowl

MARC GOLUB

Jeff Christian, founder of the powerhouse executive search firm Christian & Timbers, is rebuilding his life after a young man’s death led to a year for him in jail.Mr. Christian has started both a for-profit company and a nonprofit foundation, the latter of which helps individuals dealing with drug and alcohol addictions.

Last replenished in’07, injections neededBy MICHELLE [email protected]

Mum’s the word, but there aresigns that the hunt for dollars is on.

Although they’re restricted by securities law in what they can divulge publicly about their fund-raising efforts, a number of local private equity firms appear poised to embark on raising the cash they’ll need for future investing, ifthey haven’t begun the process already.

“This is logically going to be a bigfundraising year because everyoneneeds to put more gas in the tank,”said John Mueller, a partner withCapitalWorks LLC, a private equityfirm in Cleveland.

While he steered clear of revealing

ERs receivehealthy doseof attention

See PROWL Page 11

By TIMOTHY [email protected]

Northeast Ohio’s health systemsare investing millions of dollars tomuscle up their already-boomingemergency rooms amid the prospectof thousands of newly insured patients entering their doors becauseof the federal health care overhaul.

Coordinating preventative care toavoid costly emergency room visits isan anchor of the health care reformlegislation. However, an escalatingshortage of primary care physicianscould lead to an even greater influxof patients in the ER, according tovarious health care professionals.

See ER Page 21See CHRISTIAN Page 20

AN ICON’S ROAD TO REDEMPTIONWorld of indulgence, tragedy becomes sobering foundation for new purpose in life

INSIDE: TrackingMr. Christian fromthe 1980 foundingof his Christian &Timbers executivesearch firm throughhis arrest and to today. Page 20

20110418-NEWS--1-NAT-CCI-CL_-- 4/15/2011 3:36 PM Page 1

National studies expect continued increases in corporate travel. We’ll look at some of the overallbusiness travel trends in NortheastOhio and profile frequent travelersin this special section.

The latest in business travel

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CITY LIVINGYoung professionals are moving to or near big cities in a big way, according toan analysis of housing data from 2000 to 2009. In Cleveland, the number of25- to 34-year-olds who have a four-year degree or higher and live within threemiles of the city’s central business district rose 49% in that decade, represent-ing a gain of 1,302 people. Here’s how Cleveland shapes up against selectedother cities:

Atlanta 9,722 61%

Cincinnati 2,001 28

Cleveland 1,302 49

Columbus 4,033 45

Detroit 1,968 59

Indianapolis 2,669 83

Pittsburgh 3,155 40

SOURCE: ANALYSIS OF DATA FROM 2000 CENSUS AND 2005-2009 AMERICAN COMMUNITY SURVEY

20110418-NEWS--2-NAT-CCI-CL_-- 4/15/2011 11:58 AM Page 1

APRIL 18 - 24, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

THE WEEK IN QUOTES

MidTown Tech Park momentum buildsDeveloper Geis acquires properties torepurpose as parking, incubator space

By JAY [email protected]

Geis Cos. is extending its com-mitment to Cleveland’s Midtowndistrict with plans for a $6.5 millionrehabilitation of a building at 7000Euclid Ave. that will be a companionto its under-construction MidTownTech Park.

Leasing is going so well, said FredGeis, a partner in Geis Cos., that theStreetsboro development firm isbuying two nearby properties evenbefore the first tenant moves into its$28 million MidTown Tech Park.

Hemingway Development, a divi-sion of Geis, is acquiring two build-ings east of the tech park, at 6900and 7000 Euclid Ave. It will redevelop

7000 Euclid, once the home of DeanSupply Co., into additional office andincubator space. It will tear down thebuilding at 6900 Euclid, which is between the 128,000-square-foottech park and the building at 7000 Euclid, for parking for the complex.

Fred Geis, his brother Greg and investor James Doyle are the princi-pals of Hemingway Development.

“Obviously were trying to create anenvironment for multiple projects tomove forward,” Fred Geis said in atelephone interview last Wednesday,April 13. “We’re trying to create acampus.”

The MidTown Tech Park is the firstpiece of the “Health-Tech Corridor,” apublic-private partnership kicked ofin 2010 to attract biomedical andtechnical companies, especially thosein incubator space in the area ofUniversity Circle, to the district between University Circle anddowntown Cleveland.

“Fred’s had a vision that is closelyaligned to what we want,” said JamesHaviland, executive director of Mid-Town Cleveland Inc., a communitydevelopment nonprofit that repre-sents business and property ownersin Midtown. “What we’re seeing is

Fred Geis Greg Geis

INSIGHT

Green infrastructure advocates get hands dirtyGovernment, nonprofitgroups to assist sewerdistrict with upgrades

conglomerate of environmentallyconscious Northeast Ohio organi-zations are not willing to go withthat flow.

Instead, several parties from thepublic and nonprofit sectors want toassist the Northeast Ohio RegionalSewer District in reducing theoverflow of muck that contami-nates the region’s water systemevery time runoff enters the sewersystem’s pipes during rain storms.

As part of a settlement reached

last December with the U.S. Envi-ronmental Protection Agency, thesewer district must make $3 billionin infrastructure improvementsover the next 25 years to reducethe release of raw sewage into localwaterways to 494 million gallonsper year from the current 4.5 billion gallons annually. Part ofthat plan includes capturing 44million gallons a year throughgreen infrastructure projects thatstore or redistribute the storm water.

The sewer district already isconducting a feasibility study thatseeks to identify optimal pocketsof vacant land in Northeast Ohiothat could be transformed intogreen infrastructure projects, suchas wetlands or rain gardens — depressions that feature plants,gravel and sand capable of absorbingexcess water. The study is sched-uled for completion in December.

The sewer district has eight

By KATHY AMES [email protected]

Each year, billions of gallons ofraw, untreated sewage spill intoLake Erie and nearby rivers. A

“We’ve seen an uptickcompared to whenthings were really bad.Companies are begin-ning to feel betterabout spending moneyfor employee develop-ment and training.”— Barbara Hanniford, dean ofcontinuing education at Cleve-land State University. Page 17

“The goal is that theystart to have a life ofrecovery in prison …and when they leave,we wrap our armsaround them.”— Jeff Christian, founder of thenonprofit Number 12 Foundationand the for-profit Revenue Beast.Page One

“Fundraising is thelifeblood of privateequity groups. Theability to successfullyfundraise … allows usto not only maintainour employee bases,but hopefully to expand them as well.”— Graham P. Hearns, spokesmanfor The Riverside Co. Page One

“There is an increasingrecognition of the importance of intern-ships. … Increasingly,employers want peo-ple who have somekind of experience,even new collegegraduates.”— Ann Womer Benjamin, executivedirector of the Northeast OhioCouncil on Higher Education.Page 13

See GREEN Page 6

MAKETHAT

CHANGEBanks renovate NE Ohio

branches, add new amenities

By MICHELLE [email protected]

redit quality isn’t the only thinglooking prettier at banks thesedays.

Several institutions are investing millions of dollars to freshenand upgrade their Northeast Ohiobranches — an effort that for some meansnew carpeting underfoot, new paint onthe walls and new technology, including TVscreens and customer Internet stations.

Columbus-based Huntington Bankplans to renovate to some degree everybranch in its footprint over the next 14 or15 months at an estimated cost of $70 million. Updates to all 98 Northeast Ohiobranches should wrap up by the mid- tolate fourth quarter, said David Hawkins,senior vice president and director of customer experience. Local work will account for $11 million of the expendi-tures.

First Federal of Lakewood is in themidst of improving about one-third of its

C

See BANKS Page 8

Huntington Bank is making upgrades toits bank branches,including this loca-tion in Strongsville.The newer featuresinclude a brighterlobby, e-merchan-dising, new seatingin offices and wait-ing areas, and hos-pitality centers thatoffer coffee and teato customers.PHOTOS PROVIDED

this vision of a health-tech corridorplaying out really nicely.”

Selling day and nightMr. Geis said his firm is selling the

See GEIS Page 8

AFTER

BEFORE


“We’ll have another greatexample of the impor-tance and effectivenessof sustainable building.” – Michele Kilroy, coordinator ofNortheast Ohio Chapter of theU.S. Green Building Council


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Med mart crews eye recycling goalSome materials to be reused at new complex

certification for the project. LEEDstands for Leadership in Energy andEnvironmental Design.

To achieve such a ranking, the developer also must use energy-effi-cient lighting, heating and coolingequipment and plumbing fixtures.

Meeting the LEED guidelines haspresented an unexpected challengefor the medical mart project, whichrazed two of downtown’s open pub-lic spaces as it demolished Mall Band Mall C to get at the undergroundconvention center and ballroom.

Plans call for the new conventioncenter’s roof replacements to be amore bucolic Mall B and Mall C, Mr.Johnson said, which would be morein line with the original plans for theMall by famed park designer FrederickLaw Olmsted, known as the father oflandscape architecture. The catch,Mr. Johnson said, is that a projectdoesn’t get any points in the LEEDranking system “for replacing agreen roof with a green roof.”

The medical mart is pursuing alofty goal for diverting demolitiondebris from landfills, especially for aproject of huge scale.

Michele Kilroy, coordinator of the Northeast Ohio Chapter of theU.S. Green Building Council tradeand advocacy group, described 50% recycling of construction debris as afirst level of achievement and 75% asecondary level.

“I think this project is coming inrather high with a 95% rate, which Ithink demonstrates that it can bedone at that level. It’s exceptional,”Ms. Kilroy said. “When the MedicalMart and Convention Center is com-pleted, we’ll have another great exam-ple of the importance and effective-ness of sustainable building.” ■

By STAN [email protected]

Mound-builders are at work inCleveland’s Flats.

Instead of using stone tools, thesemodern-day mound-builders operatebackhoes, cranes and 100 trucks, thelatter of which are loaded with concrete, soil or other materials thatare hauled across downtown dailyfrom the construction site of theCleveland Medical Mart and Con-vention Center.

These crews are fulfilling an objective to recycle 95% of the debris removed from the old Cleveland

Convention Center and four demol-ished buildings at the site of the newcomplex, according to Dave Johnson,public relations director for the medical mart and convention center.

Since early January, crews havehollowed out the old conventioncenter from St. Clair Avenue to thenorth side of Lakeside Avenue. In theprocess, they have excavated 83,390cubic yards of material from the site,Mr. Johnson said.

The effect of digging that blocks-long hole at the convention center is apparent on the east bank of theCuyahoga River in the Flats. There,near Main Avenue, crushed concretestretches skyward a few yards fromwhere the Wolstein Group and Fair-mount Properties are constructingErnst & Young Tower and its associ-ated structures as part of the FlatsEast Bank mixed-use project.

Mr. Johnson said the medical martplans to reuse as much as 25% of thecrushed concrete for stone fill as wellas sidewalk and road beds on its site.The rest is bound for other construc-tion projects in the region, includingthe Flats East Bank and the InnerBelt Bridge construction project, Mr.Johnson said.

Soil from the medical mart projectalso will be put to fresh use, althoughMr. Johnson said he has no statisticsfor how much has been trucked toFlats East Bank and other parts of theFlats for the Inner Belt project.

Crews on the medical mart site areseparating steel, copper and othermaterials to recycle it as scrap. Othermaterials are bound for third-partyrecyclers who sort out as many materials as possible.

Mr. Johnson credits the medicalmart’s developer, Chicago-basedMMPI, for the sustainability effortsin Cleveland, as it has followed suchpractices for several years. He saidVan Auken Akins Architects LLC inPepper Pike, one of its architects, hasheld regular workshops on sustain-ability and steps to win LEED Silver

Crews workingat the ClevelandMedical Martand ConventionCenter have agoal of recycling95% of the debris removed,like the pilesseen here.DOUG BARDWELL

Volume 32, Number 16 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com-bined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July,the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland,OH 44113-1230. Copyright © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio,and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’sCleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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Tech entrepreneurs hatch advisory planInvestors commit cash, expertise to aid startups

By CHUCK [email protected]

Now that they’ve sold their sharesin Solon-based Findaway World,Christopher Celeste and BlakeSquires have the time and money tohelp other companies enjoy thesame success they’ve had.

The two entrepreneurs are givingtheir full attention to Hatch PartnersLLC, a firm they created to invest inyoung companies and to provideconsulting services to both startupsand established companies lookingfor new ways to grow.

“We work with people who are eitherstarting or stuck,” Mr. Celeste said.

Messrs. Celeste and Squires —who in 2004 founded the companythat would become Findaway World— technically started Hatch abouttwo years ago, around the time thatMr. Celeste left his position as presi-dent of the company, which makesPlayaway-brand digital audio players.

At the time, however, Mr. Squireswas still chief strategy officer at Find-away World, which today has about125 full-time employees. And thoughMr. Celeste started working with afew entrepreneurs through Hatch,he considered it a part-time job.

Then, last November, Mr. Squiresleft Findaway World with the goal starting a new venture with Mr. Celeste. Instead, they decided to expand one that already existed.

“We said, ‘Why don’t we just putboth our hands on Hatch?’” said Mr.Celeste, who is the son of formerOhio Gov. Richard Celeste.

They have firepower at their dis-posal. In December, Messrs. Celesteand Squires, as well as a third investor,sold their shares in Findaway Worldto the company’s majority owner.They declined to identify the owneror the third investor, nor would theysay what they received for their shares.However, they did say the sale pro-vided them a lot more cash to invest.

They expect the typical Hatch investment to be in the range of$30,000 to $50,000, but they notedthat the firm would be willing to investas much as $500,000 in one company,if it found the right opportunity.

In addition to cash investments,Hatch also provides coaching to entrepreneurs and consulting servesto companies looking to launch aproduct or accelerate their growth insome other way. Clients can pay inthe form of cash or stock.

Hatch already has made invest-ments in a few companies, includingMedCity Media, a Cleveland-basednews service that covers the busi-ness side of the health care industry,and Beyond Motherhood LLC ofCleveland, an online communityaimed at helping mothers get backinto the job market. Its investments,however, will not be limited toNortheast Ohio.

They also have invested in theirown startup, MovBand LLC. Thecompany has developed a new typeof pedometer that students partici-pating in school fundraisers woulduse to track their steps. The accelerometer-based product is designed to be more durable thanother pedometers but less expensivethan other devices that use accelerometers, Mr. Squires said.

A key innovation, however, is howthey plan to market the MovBand:

Schools would pay for the deviceswith a portion of the money studentsraise as they count their steps.

PHOTO PROVIDED

Blake Squires (left) and Christopher Celeste of Hatch Partners LLC

EARLY TO INVESTHatch Partners LLC will invest

in and advise startups and counselestablished companies lookingfor growth. Its early investments:

■ MedCity Media, a news servicethat covers the health care industry

■ Beyond Motherhood LLC, aweb site that helps mothers getback into the job market

■ MovBand LLC, their own company, that has developed a newpedometer that helps track steps infundraisers

A handful of clients already pay forHatch’s coaching and consultingservices, too. Among them is NaratteInc. of Palo Alto, Calif.

The two entrepreneurs are a greatteam, said Naratte chief develop-ment officer Byron Alsberg, who metMr. Squires when Findaway was justgetting off the ground. Mr. Squires,he said, is particularly knowledge-able when it comes to supply chainmanagement, and Mr. Celeste’s spe-cialty is marketing.

Mr. Alsberg said finding a consult-ing firm that can do all that Hatchdoes would be hard, even in PaloAlto, in the heart of Silicon Valley.

“To have that kind of a combina-tion in one shop is pretty tough tofind,” he said. ■



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years to make $42 million in greeninfrastructure upgrades under thesettlement with the EPA.

“It involves a lot of coordinationwith a lot of other partners,” said KyleDreyfuss-Wells, the sewer district’smanager of watershed programs.

Because of various vacant landreuse initiatives in development orunder way, sewer district officialscan tap resources that wouldn’t beat their disposal if agencies such asthe Cuyahoga County Land Reuti-lization Corp. or the nonprofitNeighborhood Progress Inc. had notbeen tackling over the last coupleyears the region’s vacant land issue.

“There’s been a great deal ofwork done on specific projects thatrepurpose vacant land, and the sewerdistrict has been a part of that,” saidChris Warren, chief of regional de-velopment for the city of Cleveland.

Narrowing down the fieldSewer district officials say they

are looking at factors such as soilcondition and the amount of con-tiguous vacant land as they assesspotential locations for green infra-structure projects.

Gus Frangos, president and generalcounsel of the Cuyahoga County LandReutilization Corp., said the county’sland bank is working with the sewerdistrict to identify potential sites.

The process goes beyond justmapping, he said.

“We have software that pulls

property and tax records and otherinformation from all kinds of data-bases” about vacant plots and sur-rounding properties, Mr. Frangossaid. “We can help them be a lotmore strategic about their plans.”

City officials in Cleveland, mean-while, also are working with thesewer district to help identify opti-mal spots for green projects. Thecity has about 16,000 vacant parcelsavailable in its land bank.

“We hope to help them identify12 to 15 potential sites by late sum-mer, then narrow it down fromthere,” Mr. Warren said.

Bobbi Reichtell, senior vice pres-ident for programs at Neighbor-hood Progress, said she sees thesewer district’s green infrastructureinvestments as larger-scale modelsof what several entrepreneurs havebeen doing as part of the communitydevelopment group’s vacant landreuse plan — ReImagining a MoreSustainable Cleveland — the backers of which include about 30regional partner organizations.

Neighborhood Progress and thecity of Cleveland since the start oflast year have financed 57 pilot projects, including urban farms andrain gardens, that are putting vacant land to reuse. Thirty-six projects are complete, and the other21 are scheduled for completion byJune 15, Ms. Reichtell said.

The sewer district is testing similarwaters.

It announced last Wednesday,

April 13, it will issue at least fivegrants of about $10,000 each forsmall-scale green storm waterdemonstration projects.

Function, and form, tooMeanwhile, to facilitate the sewer

district’s larger plans, Neighbor-hood Progress established in Marcha ReImagining Cleveland Coordi-nating Committee that will serve asthe sewer district’s advisers while itsgreen infrastructure program pro-ceeds.

Kent State University’s ClevelandUrban Design Collaborative also iscollaborating with the sewer districton making sure its green infrastruc-ture projects are functional, saidTerry Schwarz, director.

“These will be neighborhoodamenities, like urban wetlands orparks, that attract other invest-ments,” Ms. Schwarz said. “We’renot talking about a retention pondbehind a fence. And these projectsdon’t preclude residential andcommercial development.”

After the sewer district’s feasibilitystudy is complete and potentialparcels of land for green infrastruc-ture projects have been identified,Ms. Schwarz said, land reuse stake-holders will need to form evenmore partnerships.

“Once the mapping is done, weneed to engage the community development groups and the restof the private sector,” she said. ■

continued from PAGE 3

Green: Land reuse work advances efforts

Ohio Capital Fund infusionsproceed, though future hazy By CHUCK [email protected]

Two investments made by thestate-financed Ohio Capital Fundover the past two months bring toseven the number of investmentfirms that have an office in North-east Ohio because of the fund,which will run out soon unless renewed by the state Legislature.

The Ohio Capital Fund, which invests in venture capital firms thatcommit to investing at least half themoney they receive from the fund inOhio-based companies, a few weeksago committed an undisclosedamount of money to Edison Venturesof Lawrenceville, N.J. Last month, thefund also announced an investmentin Arsenal Venture Partners of WinterPark, Fla. Both hired part-time invest-ment managers in Cleveland.

Now the $150 million Ohio CapitalFund has just $10 million left to invest, said fund manager Paul Cohn.The fund, which the state created in2005 to boost investment in Ohio-based startups, has invested $125million in 23 funds to date, putting theaverage investment at $5.4 million.The fund is retaining $15 million incase returns from investmentsdon’t come fast enough to covervarious expenses, Mr. Cohn said.

Those expenses include interestpayments that will begin next yearto bondholders that bought bondsto finance the Ohio Capital Fund.Should the fund’s investments losemoney, the state will pay backbondholders with tax dollars.

Although the Ohio Capital Fundhas many supporters, whether it

will be renewed is unclear.

An uncertain fateThe Ohio House of Representa-

tives in May 2010 unanimouslypassed a bill that would have autho-rized the Ohio Venture Capital Authority, which oversees the fund,to sell another $100 million inbonds to finance the fund. However,that bill never received a vote in theOhio Senate and since has expired.

The bill’s authors, state Reps. JayGoyal, D-Mansfield, and SandraWilliams, D-Cleveland, introducedan identical bill this year, but nowthe Legislature faces larger con-cerns, such as how it will fix a short-fall projected to exceed $8 billion inthe state’s next two-year budget.

Though he is not actively pushingfor the extension of the fund, Mr.Cohn lauded the program’s trackrecord of attracting capital to the state.

With the Edison Ventures and Arsenal Venture investments, therenow are eight out-of-state venturecapital firms that have openedmanned offices in Ohio after receivingmoney from the Ohio Capital Fund.Plus, managers from two in-statefunds told Crain’s that they neverwould have formed if not for invest-ments received from the fund.

Of those 10 investment firms,Edison, Arsenal and five othergroups — including Chrysalis Ven-tures of Louisville, Ky.; ArboretumVentures of Ann Arbor, Mich.; Radius Ventures LLC of New York;RiverVest Venture Partners of St.Louis, and Bridge Investment Fund,a new Cleveland-based fund — havehired employees to search for invest-

ments in Northeast Ohio. An eighthfirm, Draper Triangle Ventures ofPittsburgh, has an unmanned officein Cleveland and has become an active investor in the region.

Investments add upAs of last Dec. 31, the venture cap-

ital groups that are new to Ohio hadinvested $41 million in 16 companiesin the state; those investments in-clude seven companies in NortheastOhio, Mr. Cohn said. The Ohio Capi-tal Fund at the time had distributedjust $31 million of the $56 million ithad committed to those groups, notincluding Edison or Arsenal. Mr.Cohn noted that those groups haveinvested more money in Ohio thanthey’ve received.

Same goes for the broader list of 23venture capital firms that have re-ceived Ohio Capital Fund money, hesaid. They have invested about $140million in 50 Ohio-based compa-nies, giving the Ohio Capital Fundan ownership stake in each one.

One of those firms, advertising analytics firm ClearSaleing of Colum-bus, was acquired in January by GSICommerce Inc., making it the first in-state Ohio Capital Fund portfoliocompany to be sold. Another, inCincinnati, has struck a deal to be acquired, though details have yet tobe announced, Mr. Cohn said.

ClearSaleing received an invest-ment from NCT Ventures of Colum-bus. Neither NCT nor Bridge Invest-ment Fund in Cleveland would haveformed without the Ohio CapitalFund, said NCT managing partnerRich Langdale and Bridge managingpartner Michael Goldberg. ■



18 branches, and when all is saidand done, the improvements willcost about $2 million, said DavidShaw, senior vice president of retailbanking.

And New York-based Chase is

doing far more sprucing up in thismarket than Jeff Papa can remem-ber in the decade he’s overseen theEast Ohio market as retail marketmanager, at an estimated cost of $3million to $3.5 million.

Banks upgrade branches in

cycles, but that they’re doing it now— during a tough revenue marketand to an extent they haven’t in years— is another sign that their health ison the mend, industry insiders say.

“The obvious conclusion is they’regearing up toward an improving


Banks: Investments suggest industry stabilization

Geis: Developer seeks tax credits


project hard and he believes he willhave 75% of the 128,000 square feetin the under-construction buildingleased by early June, when tenantswill be able to occupy it.

“We’re working hard at it; wewere making presentations from 7a.m. to 7 p.m. yesterday,” Mr. Geissaid. “We have people moving inJune 1 and we hope to have othersmoving in in September.”

The only announced tenant isJumpStart Inc., the nonprofit thatnurtures fledgling businesses. Itsaid last November that it wouldsign a 10-year lease for 9,500 squarefeet in the new building. It is expectedto be the first tenant in the building.

The Geis campus is the first

multitenant rental space in theHealth-Tech Corridor.

“One thing we haven’t had is anample supply of space,” Mr. Havi-land said. “Now Fred has broughtonline a new-construction optionand an adaptive-reuse option.”

The Health-Tech Corridor waskicked off in 2010 as one of formerGov. Ted Strickland’s “Hubs of Opportunity and Innovation” — astate effort to create clusters of de-velopment centered around partic-ular industries. Along with the hubdesignation came a $250,000 grant tohelp brand and market the district.

The Geis complex gives the corridortwo price points for potential ten-ants — premium-priced new spaceand economical rehabbed space.

A high-tech advantage

Geis Cos. is asking the city ofCleveland for a 10-year, 60% taxabatement on the property at 7000Euclid. It also is seeking $1.3 millionin partially forgivable loans for theproject. In addition, it expects to usefederal New Market Tax Credits tobring down the cost of financing.

Cleveland City Council has approved the loans and the council’scommunity and economic develop-ment committee approved the taxabatement at its meeting last Tuesday,April 12. The project is expected tobe approved by council’s financecommittee and then the full counciltoday, April 18.

Tracey Nichols, the city’s director

economy,” said James Thurston,spokesman for the Ohio BankersLeague. Investing in resources that puton a good face to customers indi-cates banks have their eye on increasingtheir market share, he added.

It also helps that many Ohio insti-tutions have more money availableto invest in upgrades than banks instates such as Florida and Georgia,where banks were harder hit by thebanking crisis, Mr. Thurston noted.

Make way for videoCleveland’s KeyBank actually did

renovate during recent, tumultuousyears, including 2008 and 2009, andcompleted its 63-branch revitaliza-tion in late 2010. The work includedvideo screens behind teller areas andmore confidential, enclosed officesfor meetings, said Todd Hays, seniorvice president and retail executivefor Northeast Ohio.

Across Huntington’s footprint,there hadn’t been much work doneon the branch network since probablythe Sky Bank acquisition in July 2007,Mr. Hawkins noted. The coming renovations include brightened inte-riors and video messaging to replacesigns. The electronic merchandisingwill be used not only to marketHuntington products, but also localevents and businesses.

Huntington’s capital investmentis rooted in its desire to seize on thecurrent environment. For one, itwanted to command a higher profilein the marketplace at a time whenother institutions have reined intheir investments. Also, constructioncosts are lower than they would be ifthe building market was robust.

“We’re already seeing someupticks in terms of labor costs andmaterial costs,” Mr. Hawkins noted.

of economic development, said shebelieves the city is in a good positionto woo health care informationtechnology companies and other ITcompanies to Midtown. She said afiber-optic trunk line that runs under-neath Euclid Avenue allows IT firmsto save thousands of dollars becauseof the easy tie-in to the Internet.

The city also is attractive to theyoung work force of IT companies,Ms. Nichols said.

The Geis firm also has its sights seton a third project in Midtown, the ag-ing and vacant Warner & Swaseycomplex at East 55th Street andCarnegie Avenue.

Mr. Geis said redevelopment therewon’t get under way until a city- andstate-financed environmentalcleanup is completed. The plan is toturn the late 19th century machine-tool plant into 180,000 square feet ofmixed office and industrial space. ■

“It’s still better than it would havebeen two years ago and probablymuch better than it would be twoyears from now.”

Sprucing up for others?First Federal, a mutual, also had

not renovated in recent years; it isdoing so currently, in part, becauseit acquired Century Bank last December, Mr. Shaw said.

“Having standardization and someuniformity is important,” he said.

The work that will be done will depend on the branch. First Federaladded last summer a drive-throughATM for increased convenience at itsFairview Park location and plans adramatic facelift for the Parmabranch it acquired from Century.Other locations will receive lessmodification.

Chase’s Mr. Papa and several otherbankers emphasized that even whilenewer banking methods, such as on-line banking, are growing in popu-larity, people still bank inside banks.

“We find our branches are extremely busy,” Mr. Papa said. “Ourtransactions that we do in thebranches are very stable and in factare growing.”

One bank executive who requestedanonymity opined that some institu-tions may be renovating, in part, tobuild up their franchise value in theevent of a future acquisition.

Huntington’s Mr. Hawkins doubtsthat’s the motivation. Before hejoined Huntington in fall 2010, heworked for a Portland, Ore., bankthat acquired some 15 institutionsover a decade.

“I really believe that folks that aredoing it … they’re in it for the longterm,” Mr. Hawkins said. But, speakingto acquisitions Huntington mightmake, he also admitted, “I’m hopingthat when we buy (other banks), weget some spiffed up-places. It wouldmake my life easier.” ■


A division ofStreetsboro-based GeisCos. contin-ues to makeinvestmentsin Cleveland’sMidtown district.JAY MILLER

CRAIN’S SEEKS COMEBACK KIDSOn June 27, Crain’s Cleveland Busi-

ness will publish a special section called“Northeast Ohio’s Comeback Kids:Great Business Turnaround Stories.”

We’re aiming to profile individualsor businesses that have proven to bebattle-tested — those that cameclose to the brink of ruin, but insteadmoved in a positive direction due tocareful management and calculation.

Nominations can be submitted viae-mail to sections editor Amy AnnStoessel at [email protected];please include “Comeback Kids nomination” in the subject line. In

addition, they can be sent via regularmail to Ms. Stoessel at 700 W. St.Clair Ave., suite 310, Cleveland44113.

More than anecdotal evidence —such as current and past revenue andemployment numbers, in the case ofbusinesses — is preferred and rec-ommended as part of the nomination.Turnarounds must have been sus-tained over at least a two-year period.

Nominations should be no longerthan a single page. The deadline forsubmission is the close of businesson Monday, April 25.



This is going to be another weekfor moral issues, dear readers, aswell as the continuing mysterythat is our General Assembly.

More correctly, this is directed to acertain group of elected officials who really should be doing something else fora living rather than making laws.

Regular readers might recallthe slight rant I went on a fewweeks back when the GeneralAssembly — facing the mostdire budget deficit Ohio hadseen since the Great Depression— decided to consider whatwould be the nation’s strictestban on abortions. Dubbed the“heartbeat bill,” it would banabortions after a fetal heartbeatcan be detected.

I’ll say it again now, for those whomissed my mid-February column: This isnot about the moral debate over abortion,an issue that continues to stir deep emotions four decades after the SupremeCourt first legalized pregnancy termina-tions.

This is about focusing every ounce of energy into reversing decades of

economic decline that threaten our state’sfuture as never before. Repeat after me,members of the House and Senate: “It’sjobs, jobs, jobs.” And if you forget thatone, focus on this classic: “It’s the econ-omy, stupid.”

Now, just two months later, our legis-lators are dealing with a bill that came

out of the Republican-domi-nated Senate that allows peoplewith permits to carry concealedweapons to have those guns inbars, restaurants and open-airstadiums that sell alcohol.

Really? Are you kidding me?Not to fear, however, says

Sen. Tim Schaffer of Lancaster,the bill’s sponsor. The lawwouldn’t allow the gun-holderto drink alcohol while carrying.

Now that’s a relief. He’s just going tobe packing heat in an environmentwhere emotions run high and fists havebeen known to fly. Can you imagine sitting in Cleveland Browns Stadiumwondering which nutcase is going to getso mad at another fan that he pulls outhis pistol?

I’m not a gun-control advocate, but I

do believe our laws still don’t do a verygood job of keeping weapons out of thehands of those who intend to harm others.Think Jared Loughner, a critically woundedcongresswoman, a dead little girl.

Our elected representatives need tostop — if they can possibly muster theself control — and turn all their attentionto Ohio’s economic future. For the fore-seeable future, each and every Ohioanshould judge the quality of their legisla-tors based on nothing but what they’redoing to get this state working again.

We all hear young people make theirplans to leave Ohio as soon as they can. We read the stories about successful economic transformations elsewhere.We know it can happen here, especiallygiven the wealth of higher-education institutions Ohio is fortunate to have.

But it will be made even more chal-lenging — as if anybody thought the hillcould get steeper — when those we electwaste their time on “hot-button” issuesdesigned to generate publicity for them-selves and help craft their next politicalopportunity.

Shame on them for doing it, andshame on us for electing them. ■


What a waste

Budgets are balanced by matching revenueswith expenses, and Gov. John Kasich hasbeen an absolute lion in attacking the expense side of the ledger as he looks to

balance Ohio’s budget. However, when talk turns toclosing tax loopholes that could provide the statewith hundreds of millions of dollars in added revenue, the governor is a real pussycat.

He needn’t be. There is a road map Gov. Kasichcould follow for bringing more cash into the statetreasury without raising tax rates. It’s the Ohio TaxExpenditure Report, and it provides a list of 128 “taxexpenditures” — tax breaks that take the form of exclusions, exemptions, deductions and credits and collectively add up to several billion dollars ofrevenue the state forgoes each year.

Since 1987, the state tax commissioner has beenrequired to submit the report as a supplement tothe governor’s two-year budget. The report doesn’taddress the merits of the tax exemptions. However,it’s meant to be what tax commissioner Joseph Testa calls “an important resource for those makingdecisions about Ohio’s tax policy.”

The idea behind the report is for elected officialsto assess whether the economic benefit gained fromextending a particular tax break is worth the rev-enue lost to the state. To that end, the report does agreat job of estimating for each tax break the state’srevenue loss in each year of the current two-yearbudget and each year of the next biennial budget.

Sadly, though, the report has been a waste of effort and disk space because governors and legisla-tors have disregarded its contents. Gov. Kasichdoesn’t seem inclined to break with this tradition,based on a recent email from spokesman RobNichols after Crain’s inquired about whether thegovernor may look at doing away with certain taxbreaks.

“One person’s tax expenditure elimination is another person’s tax increase,” Mr. Nichols wrote.And right now, Mr. Nichols later said, “mostOhioans don’t believe that they are currently undertaxed.”

Most Ohioans don’t, and we wouldn’t mess withindividual tax breaks. But what about some businesstax breaks that are of dubious economic value?

Take the tax break for our business — newspapers.We’re exempt from sales tax, to the tune of about$17 million in lost tax revenue per year. Would wesell fewer papers if they were taxed? Probably not.

Want bigger game? Ohio excludes the first $1 million of a business’s gross receipts from the commercial activity tax, which is set at 0.26%. Instead, the tax on the first $1 million is just $150 —a break that costs the state $200 million a year. We’dsuggest a business that can’t afford to pay $2,600 ayear on that first $1 million in receipts doesn’t belong in business.

Tax breaks never die in Ohio; rather, the list ofthem just grows. That’s not smart tax policy, nor is itresponsible governance, especially in a state strug-gling to make ends meet. Gov. Kasich should putadded teeth behind his budget roars by calling forthe elimination of tax breaks with little economicjustification for their existence.

FROM THE PUBLISHER

BRIANTUCKER

Focus on the economy, nothing more

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

NICHOLE PETERSWadsworthI would say yes because withthe growing obesity rate inAmerica, I think we need to beforced to do something aboutit.

➤➤➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com.

THE BIG ISSUE

MARIE MAJDALANYHuntington, W. Va.I’m concerned about the healthof my child. When we go out,even the amount of sodium isoutrageous. Of course ... if werestrict what is going to beused, you’re going to pay more.

DENNIS BAHENALakewoodI would not support it. Justleave it up to the people tochoose what they want to eat.

JIM HAYCincinnatiI don’t know that I would sup-port laws governing what theycan and cannot put in (food),but I would certainly supportlaws of more disclosure tobenefit the consumer.

Cities across the country are considering enacting laws restricting what restaurants can use in their food. Do yousupport this possibility?


when CapitalWorks may go to market for its next fund, Mr. Muellersaid he’s heard other prominentprivate equity firms are there already. It makes sense, he said, because a lot of firms raised moneyin and around 2007, and a typicalinvestment period for a fund isroughly three or four years.

As for CapitalWorks, Mr. Muellerdid disclose the firm has investednearly 80% of the fund it raised in2007. When funds are 80% invested,he said, firms typically begin to planfor the next one.

Private equity firms raise fundsfrom institutional investors and high-net-worth individuals, then investthe money in companies to generatereturns. Many of the local firmsraise money, in part, from localpeople or people with ties to the region.

Ultimately, those private equityfirms that successfully raise moneyand produce solid returns withtheir investments stay in business.

“Fundraising is the lifeblood ofprivate equity groups,” said GrahamP. Hearns, spokesman for TheRiverside Co., one of this region’smost prolific private equity firms.“The ability to successfullyfundraise … allows us to not onlymaintain our employee bases buthopefully to expand them as well.”

Successful fundraising also setsthe stage for local investment,which could spur growth.

“If (private equity firms) employthat capital in Northeast Ohio, it canbe very good to the local economy,”said Jeffrey Kadlic, managing partnerof Evolution Capital Partners LLC inPepper Pike.

Proximity doesn’t hurtLocal firms don’t necessarily

invest in companies in NortheastOhio, so it’s hard to predict whattheir fundraising may mean for local companies in need of capital.

But there’s something to be said forproximity.

“I do think that having a very active private equity community inNortheast Ohio is a plus for compa-nies in Northeast Ohio becausethey do tend to have better accessto the decision-makers,” said CharlieCrowley, managing director ofParagon Capital Group in MayfieldHeights, which represents companiesseeking investors or looking to sell their businesses. As a result, itmight be easier for local businessesto get a serious look, Mr. Crowleysaid.

When private equity firms raisefunds, they often use local profes-sional services providers, includingaccountants and attorneys, andthey offer local people the opportu-nity to participate in a high-returninvestment class, which can resultin wealth-building for the region,insiders note.

There also are intangible benefitsto private equity fundraising here,Mr. Crowley said.

“It helps to enhance the reputa-tion of this region as an influentialplayer in the capital markets,” hesaid. “It’s nice to have money comingin, to be controlling money.”

Haves, and have notsA number of local private equity

firms haven’t raised money in sometime, said Mr. Kadlic with EvolutionCapital, which last raised a fund in2006.

“The markets were locked up,”he said. “There wasn’t a lot of buyingand selling going on because youhad challenges with your portfolio.You raise money based on your realized returns.

“If you’re not selling things, eitherbecause there aren’t buyers outthere or the business you have isn’tprepared to sell, you’re not in a position to raise money. You don’thave the exits, and your portfolio isn’tlooking as good as it did before the

recession.”Firms’ ability to attract capital

now will be the “bright line in thesand” — an indicator of who hasstaying power, said Jim Marra, director of business developmentfor Blue Point Capital Partners, aCleveland private equity firm.That’s because consolidation is expected in the private equity busi-ness, and also because fundraisingwill be more challenging than it wasthe last time firms did it, Mr. Marrasaid.

For one, a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act severelylimits the way banks, which histor-ically have been big investors in funds, may invest in private equity.

Plus, investors who’ve lost moneyduring the recession may not bewilling to invest as much into newfunds, noted Gregg A. Eisenberg,corporate and securities practicepartner with Benesch, Friedlander,Coplan & Aronoff.

“I think there’ll be winners andlosers, and I think the firms thathave a great track record (of gener-ating returns) will be successful,”Mr. Eisenberg said. “Those with lowto mediocre returns will not.”

Raising a private equity fund historically has required six monthsto a year, but insiders note it nowcan take up to 18 or 20 months. As aresult, some firms may start theprocess sooner than they normallywould.

Mr. Eisenberg is rooting for thelocal firms to succeed with theirfundraising efforts, though he admitshis intentions are a tad selfish, astheir success drives demand for hisservices.

“Cities our size — you do not seethis many private equity funds, andI hope it continues,” Mr. Eisenbergsaid. “It makes us a very sophisti-cated deal town, and we’re knownfor it.” ■


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Any combination of county, schoolworkers would require new home ■ The suggestion in Brian Tucker’sMarch 28 commentary that Cuya-hoga County government employeesand Cleveland city school districtemployees combine in one buildingmay have merit, but any combina-tion should be done in an existingbuilding rather than a new building.

Any new building would likely become enmeshed in incompe-tence, cost overruns and scandal, asdemonstrated by the county’s $40million Ameritrust Tower fiasco.

LETTERVacancy rates are high downtownand large volumes of quality officespace are available for much lessthan the cost of new construction.

I suggest any new home for the morethan 2,000 county/school districtemployees should be very near Public Square. Public Square is thehub of public transportation andwould allow cheap and convenient

WRITE TO USSend your letters to: Mark Dodosh,editor, Crain’s Cleveland Businesse-mail: [email protected]

IN BRIEF

Prowl: Activity helps local companies

transportation to county/school offices for both employees and visitors. This would also generate aneeded increase in pedestrian trafficand vitality around Public Square.

Jim SchaeferShaker Heights

Demand for high-tech visa program down by over 50% Demand is off to a slower start this

year than in previous years for H-1Bvisas, which are used to bring intothe United States prospective employees with college degrees andspecial skills.

U.S. Citizenship and ImmigrationServices began accepting H-1B visapetitions for the 2012 fiscal year onApril 1. However, only 5,900 peti-

tions had been filed by April 8 underthe general H-1B visa cap of 65,000,and only 4,500 petitions had beenfiled under a 20,000 visa cap forthose with master’s degrees or higher.

In comparison, the USCIS had received 13,500 petitions under the65,000 cap in fiscal year 2011 and5,600 petitions under the 20,000

cap in the same time period — be-tween April 1, 2010, and April 8, 2010.

Demand had been stronger in pre-vious years. The caps were reachedin one day for the 2008 fiscal year.

Staffing firms, including those thatprovide information technology workers, have been among those using H-1B visas.

— Staffing Industry Analysts


“It looks like it’s not goingto have a good feel; itlooks like glass. But ithas a great, soft feel.” – Jimmy Hanlin, director of golf,Little Mountain and StoneWatergolf clubs


Innovation.It’s what drives my career at Apple Growth Partners.

The irm encourages me to bring great ideas to life.

If you want a career at a irm that embraces creative

thinking and promotes innovation, I’d like to share my

Apple Growth Partners experience with you.

Pamela Dunlap, [email protected]

See my story.

Get the free mobile app at

http://gettag.mobi

GOING PLACES

JOB CHANGESMARKETINGADCOM COMMUNICATIONS INC.:Lee Norris to creative departmentmanager; Catherine Anthony-Gudelto traffic manager. PR 20/20: Christina CapadonaSchmitz to vice president; LaurelMiltner to assistant vice president;Keith Moehring to senior consultant;Tracy DiMarino and Jessica Donlon to consultants; Laura Pinterto associate consultant.

NONPROFITNEIGHBORHOOD HOUSING SERVICESOF GREATER CLEVELAND: KeishaK. Matthews to housing specialist. WESTERN RESERVE AREA AGENCYON AGING: Carol Burhenne to human resource manager.

TECHNOLOGYBLUEBRIDGE NETWORKS LLC:Chuck Norris to data center manager.WRIS WEB SERVICES: Brian Caraballo to web services technician.

MatthewsAnthony-Gudel

Norris HallisyBurnsBolton

BOARDSTHE CLEVELAND FOUNDATION:Charles P. Bolton to chair.THE SECOND HARVEST FOODBANK OF NORTH CENTRAL OHIO: Michael I. Goodman (Good-man Advisors and Larmick Inc.) to president; Stephen Lucas to vicepresident; Patricia O’Brien to secre-tary; Timothy McNeill to treasurer.

AWARDS3M: Abraham Joy and Xiong Gong(University of Akron) received 2011Nontenured Faculty Awards.NATIONAL COUNCIL FOR COMMU-NITY BEHAVIORAL HEALTHCARE:Nelson W. Burns (Coleman Profes-sional Services) received the 2011 Visionary Leadership Award. PUBLIC RELATIONS SOCIETY OFAMERICA, GREATER CLEVELANDCHAPTER: Beth Hallisy (MarcusThomas) received the 2011 Light-house Award.

Send information for Going Places [email protected].

Medina outfit takes aim at better puttingClearview product gainsmomentum, but founderfinds uphill climb forquirky club’s acceptance

The Clearview putter

By JOEL [email protected]

Only five players putted betterthan Tiger Woods in the secondround of this month’s Masters, whenMr. Woods surged into contention withan electrifying round of 6-under 66.

One of them was eventual winnerCharl Schwartzel, who ranked secondin putting for the week.

Conversely, only two playersputted worse than Mr. Woods didduring Saturday’s third round, whenMr. Woods shot 74 to fall back.

So when Steve Ross says he basedhis putting invention on Mr. Woods’“neutral position and repeatablemotion,” it stands to reason hemeans the Friday Tiger, and not theSaturday version.

Mr. Ross’ Medina company,Clearview Putter, is trying to makeinroads in the cutthroat world of golfequipment, where he said if yourname isn’t Titleist, Callaway or another big one, the going is tough.

Mr. Ross says his product — aclear, acrylic putter — helps golfersrepeat their stroke every time and assists with aim. The putter has a“dual-line” system: A black horizontalline perpendicular to the putter’sface that ensures a straight stroke,and a vertical green line to help withhand and shoulder movement.

If a red line appears in front of thatgreen line during the putt, a player’sshoulders are moving too quickly; ifthe red line appears behind thegreen, the player’s wrists are too

loose, and moving without theshoulders.

‘What the heck is that?’Jimmy Hanlin, director of golf at

Little Mountain Golf Club in Concord and StoneWater Golf Clubin Highland Heights, has served asan adviser of sorts, connecting Mr.Ross with the right people in the industry. He has no financial stake inClearview Putter and was not involved with the development ofthe club, but said his role with it wasborn when he first used the club onthe putting green at Little Mountain.(LPGA legend and current NBC golfanalyst Dottie Pepper also endorsesthe product.)

“When I first saw it, I thought,‘What the heck is that?’” Mr. Hanlinsaid. “It looks like it’s not going tohave a good feel; it looks like glass.But it has a great, soft feel.

“It’s a perfect aid to be in the sameposition every time you putt.”

Yet it’s been an arduous task inbreaking the establishment, Mr. Rosssaid. The Strongsville High Schoolgraduate originally was motivated todevelop the club after attending in2008 the PGA Merchandise Show,held each January in Orlando.

“In eight miles of stuff, there wasno training tool I found to be useful,”he said.

On his flight home, he read in agolf magazine that 90% of golfersdon’t aim right when they putt, or atleast aim where they think they areaiming. So he took a square piece ofpolycarbonate, attached a shaft andtried the lines. Voila.

Shades of the metal driverNow, Mr. Ross and three other

employees are pitching the putter toclubs, courses and retailers. Mr. Rosssaid the putter is sold at 40 to 50courses nationwide, including theelite Seminole Golf Club near PalmBeach, Fla.; Mr. Ross said MuirfieldCountry Club in Dublin, home ofJack Nicklaus’ The Memorial Tour-nament, has requested the product.

Two-time U.S. Open winner RetiefGoosen has used two different models, and a handful of ChampionsTour players are using the putter. Recently, two-time Masters championBernhard Langer asked Mr. Ross tobe fit, and all told, 26 pro playershave been fitted for the club, Mr.Ross said.

“I had the largest golf magazinecome into my booth and tell me,‘You have the best putter here, butthere’s no way my editor would runthis,’” Mr. Ross said. “We’re referredto as the metal driver of putting.When the metal driver came out,people said, ‘No way I’m using this.’And everyone does now.” ■


HIGHER EDUCATIONI N S I D E

APRIL 18 - 24, 2011 CRAIN’S CLEVELAND BUSINESS 13

17 CONTINUING EDUCATIONMAKING A COMEBACK.

Northeast Ohio colleges generate energy with upgradesEfficiency legislation helps spark green investments on campusgoal of reducing energy consump-tion by at least 20% by 2014, using2004 as the benchmark year.

Though the law doesn’t have theteeth to go after those that don’tadhere, it hasn’t stopped North-east Ohio’s colleges and universitiesfrom shelling out millions of dollars to ensure their facilities areas green as possible, often goingbeyond what the state requires.

Typically, the savings aren’tfrom fancy, new buildings armed

with the latest technology butrather the result of existing infra-structure that’s been overhauled.

Lakeland Community College inKirtland already has exceeded theexpectations of the law and curbedits energy usage by 40%, accordingto Mike Mayher, the college’s vicepresident for administrative services and treasurer.

The project cost Lakeland about$6.5 million, and it’s expected tosave the college about $800,000 a

year through energy savings andother avoidable capital and main-tenance costs.

“When we moved forward onthis, we didn’t do it to show off,” Mr.Mayher said. “We did it because itmade economic sense. All of thestuff we’ve done drives down thebottom line and has a tremendousnumber of other benefits.”

A budding opportunityOf the changes made to Lake-

By TIMOTHY [email protected]

Northeast Ohio’s collegesand universities are takingstrides to drastically reduce their energy con-

sumption at the behest of legisla-tion passed a number of years ago,and many already are realizing significant savings.

The law — known as House Bill251 — dictates that state-fundedcolleges and universities develop15-year plans for implementing energy efficiency, with the ultimate

land’s campus, Mr. Mayher notedthat it’s been mostly the “non-sexystuff.” For example, the college hasadded extra insulation to the roofson many of its buildings and installed building management systems that automatically regulatethe lights and temperatures.

“We still believe we can drive oursavings down another 10% or 20%,”Mr. Mayher said. “The point iswe’re not done yet. It’s a lot of littlethings that add up over time, andwe need to keep investing.”

Because of the slowing amountSee ENERGY Page 16

HAVING AFIELD DAY

Some companies revive or expand beneficial internship programs

By MICHELLE [email protected]

Students, rejoice: While unemployment remainshigh, many Northeast Ohio employers hiredmore interns last year and expect to do the samethis year.

Consider the nearly 200% increase in the number ofinternships from 2009 to 2010 on NEOintern.net, a freedatabase on which students can apply for internshipsand regional employers can post openings. There were485 postings last year compared to 166 in 2009, saidAnn Womer Benjamin, executive director of the North-east Ohio Council on Higher Education, or NOCHE,which manages the online database.

Already this year, nearly 200 internships have beenposted, and Ms. Benjamin expects the growth to continue,in part because of the greater competitiveness that exists in the job market today.

“There is an increasing recognition of the importanceof internships,” Ms. Benjamin said. “Increasingly, employers want people who have some kind of experi-ence, even new college graduates.” She acknowledgedthat increased outreach and the centralization of the

JASON MILLER

“The experience that I’ve gotten here, it’s invaluable.”– Amanda Mendelsohn (below), intern, Athersys Inc.

See INTERN Page 14

Answer Number of Participants PercentIncrease number of interns 37 35.92%

Maintain number of interns 43 41.75

Reduce number of interns 4 3.88

WORK ITMayfield Village-based ERC and the Northeast Ohio Council on Higher Educationhave collaborated since 2009 to survey local employers on their internship payrates and practices. While results are preliminary, about two-thirds of the roughly100 survey respondents said they are hiring or plan to hire college graduates thisyear; one-third said they are not. Employers also were asked whether they plan tomake any of the following modifications to their internship programs:

Eliminate all interns 1 .97

Have not hired interns (in the past) 18 17.48

Total 103 100


internship site’s operations also mayhave contributed to the growingnumber of listings.

The impact on internships ofwhat until recently has been a slug-gish economy seems varied. Someemployers have hired interns tominimize costs and to augmentlean work forces. However, otherfor-profit organizations have hiredfewer interns or eliminated pro-grams altogether, noted MartyMordarski, director of research

and membership for ERC, an orga-nization in Mayfield Village thatprovides human resources services.

By contrast, the use of unpaid internships, particularly in the nonprofit sector, grew during the recession, he said. (The federal FairLabor Standards Act restricts whenfor-profit private sector employersmay employ and not pay interns.For one, interns may not displaceregular employees.)

ERC and NOCHE have collabo-rated since 2009 to survey local


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HIGHER EDUCATION

Intern: Experience enhances education, career potentialcontinued from PAGE 13 employers on their internship pay

rates and practices. This year’sfindings haven’t been released, butpreliminary results reveal that 36%of more than 100 responding employers plan to increase their intern numbers and 42% plan tomaintain programs they’ve had.

“We feel that the fact that intern-ships have held steady and expandedis a sign that the economy is stabilizing or growing — althoughit’s hard to say for certain — because even during the recession,employers were continuing theirinternship programs,” said KatieTalarico, survey manager with ERC.

Growing their ownAccording to a survey conducted

by the National Association of Colleges and Employers, a Bethle-hem, Pa., association that tracks the employment of those who arecollege educated, employers expectto hire 7% more interns during the2010-2011 school year than theyhired in 2009-2010. Of the employersresponding to the association’s2011 Internship & Co-op Survey,93% said they plan to hire college

students for internship positions,and most plan to pay them.

In 2010, Sherwin-Williams Co.increased the number of studentsin its professional apprentice program to 41 from 28 in 2009. Thecompany expects another increasein 2011, and it is considering a payrate increase for apprentices thisyear, said Sygi Berman, humancapital acquisition specialist at theCleveland-based paintmaker.

Half the internships posted toNEOintern.net are paid, and that’sbeen the trend over the last year,Ms. Benjamin said, noting the average hourly wage for intern-ships is about $11. Some employersreceive state and college subsidiesto offset the cost of interns, she said.

National Interstate InsuranceCo. in Richfield is another localcompany with plans to increase itsnumber of interns: This year, it intends to nearly double its North-east Ohio intern number to sevenfrom the four it had in 2010.

The expansion is driven by busi-ness growth and the company’sacquisition of Vanliner InsuranceCo. last July, said Dave Michelson,president and CEO.

More internships in nonprofitmanagement, social media, webdesign and sales are cropping up,Ms. Benjamin said. ERC officialsalso noted technical and nonprofitinternships are on the rise.

Ms. Benjamin also attributes internship increases to more localcolleges and universities buildinginternships into academic require-ments and to the economy. Students are realizing they needexperience to have a leg up in theincreasingly difficult job market,she said, and employers who arereluctant to hire can utilize internsfor a finite period of time while vet-ting them as potential employees.

In addition, ERC has heard thatorganizations have struggled tofind experienced workers whomeet their business needs.

“As a result, some have becomemore proactive in developing internship and emerging leadersprograms that help them obtainand grow this type of talent,” Ms.

Talarico said.It is difficult, Ms. Benjamin said,

to track how many interns are offered jobs and accept full-timepositions with companies, thoughNOCHE urges employers to sharesuch information. In 2010, more thanhalf of Northeast Ohio employersresponding to the last ERC/NOCHE survey intended to offerfull-time positions to their interns.

Drawing the benefitsAmanda Mendelsohn, a Cleve-

land Institute of Art student, is notyour typical intern. She already hasa biology degree and she’s back inschool studying to become a medical illustrator after nine yearsof research assistant work. Earlierthis month, she was creating art ofa brain for Athersys Inc., the Cleve-land biopharmaceutical companyfor which she’s interning.

Ms. Mendelsohn is not requiredto do internships, but does so togain experience. There appearedto be more internship opportuni-ties in 2010 than 2009, she recalled.

“The experience that I’ve gottenhere, it’s invaluable,” Ms. Mendel-sohn said of Athersys. “Had I nothad that coming out of school, Ithink it’d be hard to know what toexpect and what’s expected of me.”

Companies, too, gain from internships.

“Our company has the advan-tage of a ‘long interview,’ affordingus the opportunity to get to knowthe intern in a productive way andsee if they are a good fit for ourcompany’s culture,” said Mr.Michelson of National Interstate.

Another benefit is “the spark —having fresh, young personalitiesengaging in our daily work,” saidAdam Wagner, marketing managerfor Go Media Inc. in Cleveland’sOhio City neighborhood. The 12-person graphic design servicecompany plans to bring on boardthree unpaid interns this summer,up from the two it had last year.

The community also benefitswhen students intern locally because it keeps jobs, taxes and talent in Northeast Ohio, Mr.Michelson said. ■



HIGHER EDUCATION

More students sign on to convenient online coursesColleges say better technology, accessibilitymake it easier to improve, add offeringsBy CHUCK [email protected]

Ask John Crooks who’s takingonline courses these days,and he’ll give you a simpleanswer: “Everyone.”

Colleges across Northeast Ohiohave reported big increases in thepopularity of online courses overthe past few years.

Among them is Lorain CountyCommunity College. More thanhalf of the school’s 13,000 students— 6,753, to be exact — took at leastone online class last fall, said Dr.Crooks, director of distance learningfor the college. That’s up from 4,379in the fall of 2008, a 54% increase.

Why the continued growth, somany years after the emergence ofthe Internet? Though “earlyadopters” may have been willing toexperiment with online coursesyears ago, now average students,faculty members and administra-tors have grown comfortable withthem, too, said Dr. Crooks, whoalso is associate provost of LCCC’sUniversity Partnership program.

“You’ve seen that middle tier trying it,” he said.

Better technology has helped

make online courses better, according to officials from severalarea colleges. Some cited the recession as a factor, too, notingthat adults who have lost their jobs or want to become more marketable often find it easier totake courses online.

Regardless of the reasons why, the“general consensus” is that demandfor online courses is up and willkeep growing, said Ann WomerBenjamin, executive director of theNortheast Ohio Council on HigherEducation.

“I think it’s the wave of the future.And the future is now,” she said.

Growth spurtsNationwide, the total number of

students enrolled in online classeshit 5.6 million in fall 2009, a 21%increase from 4.6 million in fall2008, according to the 2010 SloanSurvey of Online Learning. It wasthe biggest numerical increasesince The Sloan Consortium, aprofessional organization focusedon integrating online educationinto the mainstream of higher education, and the Babson SurveyResearch Group began tracking thestatistics in fall 2002.

Some area schools have seen evenbigger percentage increases lately.At Cuyahoga Community College,online enrollment hit 11,600 in2010, a 37% increase over 2009, saidChristina Royal, associate vice pres-ident of eLearning and Innovation.Enrollment grew by 34% in 2009and 27% in 2008, she added.

One factor driving the increase isthat technology is “much moreubiquitous” today than it was fiveyears ago, Dr. Royal said. She alsocited the recession as a reason forincreased enrollment, adding thatgrowth may slow down as the economy recovers.

“At some point the growth ratehas to slow down,” she said.

There’s still a lot more room forgrowth, though, according to PeteRottier, director of the Center foreLearning at Cleveland State Uni-versity. As of January, ClevelandState students were taking about49,000 credit hours via the Internet,which amounts to 33% of all credithours being taken at the university,Dr. Rottier said. The figure — whichincludes “blended” courses that involve some classroom time,though not as much as traditionalcourses — is up from 37,000 in fall2009, 28,000 in fall 2008 and 21,000in fall 2007, he said.

Online sections of general education courses at ClevelandState “fill instantly,” Dr. Rottier said.

“We’re not even close to fillingdemand just for those types ofcourses,” he said.

Lorain County Community Col-lege wants to add more courses forspecific majors, though Dr. Crooksnoted that many students stillwant to spend some time in theclassroom when taking thosecourses to develop relationshipswith their instructors.

“They want their major courses ina face-to-face environment,” he said.

Another factor limiting thegrowth of online courses is theperception that they aren’t as effective as traditional classes, saidTri-C’s Dr. Royal. She noted, however, that a growing number of colleges are seeking QualityMatters certification, a peer reviewprocess started by a consortium ofcolleges and universities aiming togive the public confidence in thequality of online education.

Realistic expectationsNew technology also has made it

possible for instructors to teachonline courses in much the same waythat they would teach traditionalclasses, said Deborah Huntsman,

executive director for the Office ofContinuing and Distance Educa-tion at Kent State University.

Kent State is in the process of upgrading its Blackboard educationsoftware to a version that will allowan instructor to establish a real-timeaudio and video connection withstudents, allowing them to haveface-to-face conversations via theInternet, Ms. Huntsman said. Thesoftware, which is “not inexpensive,”also lets instructors show studentsslides and other documents via theweb, she said.

Students enrolled at Kent State’seight campuses today fill about18,000 “seats” in about 350 onlinecourses, Ms. Huntsman said. That’sup from about 12,000 in 2010, a50% increase. University officialshave said that one day they want tooffer online sections for all KentState courses, she said. That maynot be achievable, but online enrollment should continue to expand, she said. The university alsoaims to start offering more hybridcourses that integrate elements oftraditional and online classes.

“We’re about ready to make thatshift,” she said. ■

“I think it’s the wave of the future. And the future is now.” – Ann Womer Benjamin

executive director, Northeast Ohio Council on Higher Education


of state dollars being funneled into universities and colleges, general maintenance often hadbeen delayed.

But when House Bill 251 was enacted, it offered many schoolsthe opportunity to tackle thosemaintenance issues while simulta-neously making a concerted effortto lower rising energy costs. Anotherpiece of legislation allowed univer-sities to borrow funds and paythem back with the recouped energy savings.

Cleveland State tackled its agingcampus with a recently completedtwo-year project at a cost of $43 million that aims to capture a 40%reduction in energy consumption.The project is estimated to save asmuch as $62.9 million in energycosts through 2021, and after payingoff the bonds and other overheadcosts, the project will net the univer-sity about $6 million in additionalcash flow in that time period.

Over the last two years, Cleve-land State replaced about 800pieces of equipment throughoutits campus. Some of the updatesincluded installing LED lightingfixtures and new HVAC systems.

“When people were getting intothese opportunities, we saw howlarge the scale was,” said NathanEngstrom, Cleveland State’s sus-tainability coordinator. “Therewere opportunities all around thecampus.”

Still, the return on investmentisn’t always immediate, accordingto Ted Curtis, the University ofAkron’s vice president for capitalplanning and facilities manage-ment. The payoff often can takeanywhere from 10 to 20 years.

“To me, an eight- to 10-yearpayback would be the least you’d

have to look at,” Mr. Curtis said.“Anything over that, it saves energy, it’s green, it receivesawards, but is it a good investmentof taxpayer dollars?”

Outlying benefitsMany say the answer to that

question is a resounding “yes.”Officials said that operating

expenses are a large chunk of theirschools’ finances, and slowingtheir growth ultimately translatesinto savings for students.

“Our aggressive energy conser-vation initiative is one of the reasons we’ve been able to holddown our tuition costs over theyears,” said Tom Euclide, universityarchitect at Kent State.

Kent State is in the midst of several energy conservation pro-jects, including outfitting its resi-dence halls with the latest energysavings equipment and updatingbuildings on its regional campuses.

The residence hall project is expected to cost as much as $20million, but it is estimated to save37% in energy costs. The energysavings are expected to pay for theproject, and if the savings aren’tmet, the contracting company —Brewer-Garrett in MiddleburgHeights — is responsible for payingthe deficit.

In the residence halls, the uni-versity, for instance, is replacingsingle-pane windows with thermalwindows. Additionally, Brewer-Garrett proposed installing a wire-less technology — controllable bya computer or smart phone — thatallows students and staff to auto-matically or manually turn offlights or manage the temperature.

“They’ve come up with some reallybold ideas that are going to give usenough payback,” Mr. Euclide said. ■


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• Ranked as one of the top 200 universities in the world, by Times Higher Education, London• Named to the top tier of the Best Colleges in the nation by U.S. News & World Report• Generated $1.96 billion in added income to the Northeast Ohio economy• Ohio’s second largest public university• Nearly 200,000 alumni worldwide • Celebrating more than 100 years of excellence in action

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HIGHER EDUCATION


Energy: Universitiestout environmentalbenefits, savings

IN BRIEFEntering a new chapter

Kent State’s new digital laboratory enables students toarchive books, other information

Students in the Kent State Univer-sity School of Library and Informa-tion Science are getting hands-on experience with digital library anddigital preservation technologiesthanks to a new digital laboratory.

The new digital laboratory has thecapability to digitize manuscripts,books, photographs and slides, architectural drawings and otherlarger format visual materials, aswell as more than 20 audio andvideo formats. Digitization is the conversion of analog information intodigital information, which makes thedata accessible online.

LOOKING TO LAUNCH?: ShakerLaunchHouse, a business incubator/accelerator, and Cleveland State Uni-versity’s Nance College of Businessare hosting a business idea competi-tion that aims to foster the entrepre-neurial skills of the region’s students.

The competition is open to students from any Northeast Ohiocollege or university. Students pitchbusiness concepts to a panel of entrepreneurs, venture capitalists,Cleveland State University businessfaculty and staff from ShakerLaunchHouse.

Finalists will make a two-minutepitch on May 5 at Shaker Launch-House in Shaker Heights.

The winner will receive a $2,500scholarship to Cleveland State’sGlobal Accelerated MBA programalong with support services fromLaunchHouse, including an initial$1,000 investment, incubationspace, legal support, accountingsupport and business planning assis-tance. They also will have the oppor-tunity to compete for up to $5,000in additional funding.

Students from any discipline maysubmit their ideas at www.csuohio.edu/business until noon April 25.The judges will seek ideas related tosoftware and innovative technologysolutions but will consider other opportunities as well.



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HIGHER EDUCATION

Continuing ed programs revive, revise with timesBy TIMOTHY [email protected]

Northeast Ohio studentsslowly are starting to return to noncredit, continuing education

courses that took a hit during therecession, and uncertainty at onelocal program may even mean thatother higher education institutionshave the opportunity to snag moreof the recovering market.

Enrollment in Cleveland StateUniversity’s continuing educationprograms plummeted by as much as40% between 2008 and 2009 as em-ployers stopped footing the bill forsuch programs. Enrollment startedto improve in fall 2010, but it has yetto rebound to prerecession levels.

“We’ve seen an uptick comparedto when things were really bad whenthe economy went into sort of afree fall,” said Barbara Hanniford,dean of continuing education atCleveland State. “Companies arebeginning to feel better aboutspending money for employee development and training.”

Cleveland State recently announced it was closing its con-tinuing education division in Juneto save money and adhere to theuniversity administration’s prefer-ence for a different organizationalmodel. Though some of the department’s existing courses willbe transferred to other academicdivisions, the breadth of courses tobe offered hasn’t been determined.

And depending on the outcome,it certainly could spur other insti-tutions to pick up the slack. Dr.Hanniford said that largely depends on which courses Cleve-land State continues to offer andwhether they’re marketed properlyto lure in prospective students.

Baldwin-Wallace College inBerea, for one, said it was lookingat what happens with the Cleve-land State program. Though therecurrently isn’t much overlap between the programs at Baldwin-Wallace and Cleveland State,adding additional programs mightbe worth looking into, according toDonna Van Rooy, director of professional development at

Baldwin-Wallace.“I’d have to do the business case

for it, but it’s not out of the ques-tion,” she said.

Changing dynamicsAt Baldwin-Wallace, enrollment

in the college’s leadership program,which falls into the continuing edu-cation category, slowed during therecession, but it has been pickingup. Although not as many studentsare traveling to campus for courses,the college is seeing an uptick in thenumber of companies signing upfor on-site development programs.

“I’ll tell companies that if theyhave at least 12 people who havethat need, it’s better to bring it on-site for a few reasons,” Ms. VanRooy said.

On-site programs are more costeffective, customizable to an indi-vidual company’s needs and offera more flexible schedule, she said.

Many professional developmentprograms also are moving online,said Stanley Silverman, dean of theUniversity of Akron’s Summit College, which offers continuingeducation programs. For instance,the college’s wedding planningcertificate can be earned online.

“There are some predictions(that) by 2020, almost all noncreditcourses will be online,” he said.

Meanwhile, there are several one-time courses interested parties cantake regardless of their professionalambitions. The University of Akronoffers a course on golf and Cuya-hoga Community College offers acourse on how to make a quiche.

Enrollment in these types ofcourses has remained relativelystrong, college officials say. JohnCarroll University, however, scaledback its continuing education program over the last few years because of stagnant participation,but there has been some renewedinterest.

“Our continuing ed office used tobe a lot broader,” said Deanna DePenti, the college’s continuingeducation coordinator. “Over theyears, it has been shrinking, butwe’re in talks with some other de-partments in trying to get back thoseaudited or experiential learning

courses — the things that might beof interest to those in the communi-ty.”

Ms. DePenti said she frequentlyhears from people in the commu-nity who would like to sit in on literature courses. Some of the other courses the college may offer

include courses on religious studiesand philosophy.

Readying the work forceStill, it’s not all about learning

for the sake of learning. Many professionals want to buckle downto advance their careers, and many

of Northeast Ohio’s colleges are responding to meet that need.

Baldwin-Wallace last fall startedoffering a health care executive program, given the changing natureof the industry and the demandsfacing the work force.

“With changes going on in thatarena, people who have had a clinicalmindset will learn some of thosebusiness principles they need toapply,” Ms. Van Rooy said.

Over the next year or two, Cuya-hoga Community College is plan-ning to ramp up its offerings forthose interested in brushing up theirIT skills, according to Susan Muha,the college’s executive vice presi-dent for work force development.The short, one-day courses mightbe for professionals looking to enhance their basic computer skillsor learn a new piece of software.

“The demand is out there verymuch for compressed format coursesthat are six or eight hours,” she said.“Many of us are skilled, but we needto know one component of some-thing in order to do our job better orto understand something. We don’thave 40 or 60 hours to do it.” ■

PHOTO PROVIDED

Veronica Phillips gives a presentation in a health care executive leadership classat Baldwin-Wallace College.



Come to an Open House:Wednesday, April 27in BeachwoodThursday, April 28in Bereawww.bw.edu/mba

HIGHER EDUCATION

Visiting professors elevate learning experienceExecutives, researchersintroduce new kind ofexpertise to classroom

By DAN [email protected]

Not all college professorswant tenured positionsthat cement them to oneuniversity. Some just like

to stop by a school for a week, a semester or maybe even a fewyears, to teach or conduct research— and then go on their way to another university, retirement oreven another profession entirely.

But the schools that host theseprofessors say they are sometimesamong the most valuable facultyaround.

This spring, for example, studentsat Oberlin College will be learningfrom former Washington, D.C.,Mayor Adrian Fenty, who is theyoungest person ever elected mayorin the nation’s capital. Mr. Fenty lost his re-election bid this fall —

but not his ability to convey somevaluable life lessons to students,according to the school.

“It does a lot for Northeast Ohiowhen we can bring these folks in,especially in areas such as busi-ness” where their experience canhelp students connect concepts tothe real world, said Tim Chandler,senior associate provost at KentState University.

Dr. Chandler is referring to visitingprofessors — or “adjunct profes-sors,” depending on the school —and they tend to be from one oftwo groups.

The first already are professorsat other universities who choose tospend their sabbaticals at anotherschool, where they can collaboratewith other researchers on specificprojects. Sometimes they also teacha class or two, but not always.

Visiting professorships allow forout-of-town researchers to workside by side with those locally,sharing ideas and advancing eachother’s work, Dr. Chandler said.Often, this happens without thegeneral public even knowing of it — though the graduate and

doctoral students in the depart-ment being visited are sure to beaware.

“Then there are the superstars— they have tremendous knowl-edge and experience they canshare with the students, but theydon’t want to be full-time profes-sors,” said Robin Dubin, associatedean for graduate and professionalstudies at Case Western ReserveUniversity’s Weatherhead Schoolof Management in Cleveland.

Star powerThe superstars tend to be made

up of successful people fromnonacademic fields. They chooseto teach classes during either abreak from their careers or in retirement, often at their almamaters. They might be business tycoons, artists, doctors or evenprominent politicians.

Both types of visiting professorshave their benefits for studentsand other faculty members alike,said Sean Decatur, dean of artsand sciences at Oberlin College,where former D.C. Mayor Fenty, a1992 Oberlin alumnus, will be a

distinguished visiting professor ofpolitics.

According to a news release fromthe school, Mr. Fenty will participatein a politics course this spring, and inthe fall he is slated to co-teach withOberlin professor Paul Dawson an introductory course on Americanpolitics, which focuses on the relationship between politics andpublic policy.

Dr. Decatur said Mr. Fenty is exactly the kind of person whoseexperience can benefit students.

“It allows students to make aconnection between their class-room work and what happens outside the walls of campus,” Dr.Decatur said.

The use of visiting professors alsoallows universities to bring in highlyspecialized scholars who can teachcourses on relevant contemporarytopics. For example, both Oberlinand Case Western Reserve Univer-sity are using visiting professors toteach courses on the recent finan-cial crisis.

Oberlin has former County Cuya-hoga County Treasurer Jim Rokakisteaching a course on how the foreclosure debacle struck Cuya-hoga County, while Case WesternReserve has a visiting professor fromthe Federal Reserve Bank of Cleve-land teaching business students acourse on the broader financial crisis that led to the recent recession.

Beneficial arrangementThe short-term teaching stints

also allow the schools to save money — or sometimes to avoidlong-term headaches.

Visiting professors on sabbatical,for example, often have half theirsalary paid by their home universi-ties. And, when a school is lookingto hire a professor permanently,some first will try out the prospectas a visiting professor.

“If you are making a very seniorhire, frequently you’ll bring thatperson in as a visitor to see whatthe impact will be on the rest of thedepartment and its faculty,” saidNed Hill, dean of Cleveland StateUniversity’s Maxine GoodmanLevin College of Urban Affairs.

At the same time, Cleveland Stateis leveraging its relationships withuniversities in China to facilitatetransglobal research by bringing inprofessors to work with their localpeers on research projects, he said.

Visiting professors also often areless expensive, even if they are noton a paid sabbatical, said Oberlin’sDr. Decatur. They sometimes workfor the minimum teaching salary —which can be far less than theymade in the private sector. Often,the motivation is to help their almamaters, Dr. Decatur said.

Another thing some colleges likeabout visiting professors is that, depending upon how the school isset up, the positions can be totallymarket driven. In other words, thevisiting professors might be able toteach at a university for more thana couple of semesters, or even formany years — but only if they interest students enough.

“If that class does not get suffi-cient enrollment, then that personis not rehired. It’s that kind of acontract,” Dr. Dubin said.

Many also work part time and arepaid based on the number of coursesthey teach — rather than for publish-ing research — which also affords theschool some savings and flexibility.

“You can have smaller classroomsas a result, because you can hiremore teachers,” Dr. Dubin said.

Beyond the ivory towerIf there’s a downside to visiting

professors, it might be that they often come on short notice, andsometimes stay for shorter periodsof time than a school might want.At Kent, for instance, some visitingprofessors stay for just one week —taking over a portion of a regularclass from a full-time professor.

The trick, said Kent State’s Dr.Chandler, is to be prepared forthem and to be willing to incorpo-rate them into even an ongoingclass.

It’s worth it, said Dr. Chandler andothers, because schools realize theyhave to increasingly broaden the exposure they offer students. Univer-sities used to insulate themselves,and too often their students, from therest of the world, he said.

“We cannot do that anymore,” hesaid. “We’ve got to help our studentsconnect beyond the ivory tower.” ■



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2Lincoln Financial Advisors/Sagemark Consulting28601 Chagrin Blvd., Suite 300, Cleveland 44122(216) 765-7400/www.lfa-sagemark.com

$2,059.3 $1,927.7 6.8% 4,218 NA NA Fee and commission Tim JohnsonBen Huddle

John DiMondamanaging director

3Paragon Advisors Inc.20820 Chagrin Blvd., Shaker Heights 44122(216) 491-3990/www.paragonadvisors.net

$2,000.0 $2,500.0 -20.0% 30 $15,000.0 10 Fee only Terence C. Sullivan NA

4Stratos Wealth Partners30575 Bainbridge Road, Suite 100, Solon 44139(866) 553-9882/www.stratoswealthpartners.com

$1,840.0 $1,100.0 67.3% 22,354 $1.0 3 Fee, commission, % ofassets under management Daniel Jacoby Jeffrey Concepcion

CEO

5MAI Wealth Advisors LLC1360 E. Ninth St., Suite 1100, Cleveland 44114(216) 920-4800/www.maiwealth.com

$1,647.0 $1,321.5 24.6% 464 $500.0 11Fee only based on assetsunder management or setfee for non-investmentservices

Gerald H. Gray Richard J. Buoncoremanaging partner

6Cedar Brook Financial Partners5885 Landerbrook Drive, Suite 200, Cleveland 44124(440) 683-9200/www.cedarbrookfinancial.com

$1,540.0 $1,420.0 8.5% NA $0.0 5 Negotiated Randy SchneiderPeter Franz

Azim Nakhoodamanaging principal

7Rehmann Financial1340 Depot St., Suite 205, Rocky River 44116(440) 356-4520/www.rehmannfinancial.com

$1,450.0 $675.0 114.8% 4,200 $250.0 6 Fee or commission Jeffrey Phillips Joseph P. Heidermanaging principal

8CBIZ Financial Solutions, Inc. dba CBIZ Retirement PlanServices6050 Oak Tree Blvd. S., Suite 500, Independence 44131(216) 447-9000/www.cbiz.com

$1,207.4 $1,049.9 15.0% 141 $1,000.0 NAFee, commission andpercentage of assets undermanagement

Brian Dean Luke F. Baumpresident

9NCA Financial Planners6095 Parkland Blvd., Suite 210, Cleveland 44124(440) 473-1115/www.ncafinancial.com

$965.3 $822.6 17.3% 2,500 $250.0 14 Percentage Dennis P. Lehman Kevin H. Myeroffpresident, CEO

10CM Wealth Advisors Inc.30195 Chagrin Blvd., Suite 250, Pepper Pike 44124(216) 831-9667/www.cmwealthadvisors.com

$936.0 $784.1 19.4% 72 $2,000.0 NA Percentage of assets undermanagement, fixed fees James W. Wert James W. Wert

president, CEO

11Fairway Wealth Management LLC6393 Oak Tree Blvd., Suite 108, Independence 44131-6958(216) 573-7200/www.fairwaywealth.com

$624.7 $575.0 8.6% 100 $2,000.0 4 Fee only, based on assetsand/or scope of services Mark S. Weiskind Daniel R. Gaugler

CEO, managing director

12Beacon Financial Partners LLC25800 Science Park, Suite 200, Beachwood 44122(216) 910-1850/www.beaconplanners.com

$503.0 $420.0 19.8% 2,127 NA 1 Fee and commission Dale Rubin Gregory G. Randallmanaging partner

13Sequoia Financial Group LLC121 S. Main St., Suite 300, Akron 44314(330) 375-9480/www.sequoia-financial.com

$437.6 $291.8 50.0% 1,500 $0.0 2Percentage of assets undermanagement, fee andcommision

Thomas A. Haught Thomas A. Haughtpresident

14MGO Investment Advisors Inc.1301 E. Ninth St., Suite 1400, Cleveland 44114(216) 771-4242/www.mgo-inc.com

$408.3 $341.5 19.6% 1,920 $15.0 3 Percentage of assets undermanagement

Michael BradfordMoskal

Michael Moskalpresident

15Inverness Holdings LLCOne Chagrin Highlands, Suite 440, Beachwood 44122(216) 839-5130/www.invernesswealth.com

$400.0 $350.0 14.3% 300 $750.0 10 Fee and commission Jeffrey van Fossen Richard B. Rennerprincipal

16Cornerstone Capital Advisors1507 Boettler Road, Suite G, Uniontown 44685(330) 896-6250/www.ccadvisors.com

$322.6 $264.3 22.1% 930 $100.0 2 Fee only Mario C. Giganti Mark W. Fearigoprincipal, trusted advisor

17McDonald Partners LLC959 W. St. Clair Ave., Suite 300, Cleveland 44113(216) 912-0567/www.tmpfa.com

$282.1 $110.2 156.0% 943 NA 2 Fee and commission William Hegarty Thomas McDonaldpresident, CEO

18Scott Snow (financial advisors) LLC24601 Center Ridge Road, Suite 175, Westlake 44145(440) 871-7669/www.s2fa.com

$233.0 $210.0 11.0% 55 $1,000.0 2 Fee only Scott P. Snow Scott P. Snowmanaging director

19Aurum Wealth Management Group LLC6685 Beta Drive, Mayfield Village 44143(440) 605-1900/www.aurumwealth.com

$158.0 $140.0 12.9% 86 $1,000.0 1 Fee only NAChristopher D. Bart, Eric N.Wulff, managing directors,principals

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee theselistings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book ofLists are available to purchase at www.crainscleveland.com.(1) Companies that are registered with the SEC as investment advisers but do not have full control over where their clients’ money is invested are included in the InvestmentAdvisers list. This criteria is in keeping with the standard used by our sister publication, Pensions & Investments.

It’s not all bad out there. Here’s thelatest installment of a weekly web

feature that highlights posi-tive developments in theNortheast Ohio businesscommunity.

■ The Sausage Shoppe,a meat processor and

retailer at 4501 Mem-phis Ave. in Cleveland,

won two awards last month atthe Ohio Association of MeatProcessors convention in Columbus.

Reserve Grand Champion is theaward The Sausage Shoppe receivedfor its restructured jerky, with an entry of its original recipe Beef Jerky.The Sausage Shoppe said the jerky“is judged based on external

appearance, internal appearanceand texture, aroma, flavor and texture and mouthfeel.” It’s the 17th

state or national award for thisproduct, according to the meatmerchant.

The Sausage Shoppe also placedfirst in the Innovative Productsclass for its Spicy Cheddar Kielbasi.“This class is judged based on appearance and presentation, feasibility to manufacture, aroma,flavor and texture, and being an innovative idea within the meat industry,” The Sausage Shoppesaid. Its Spicy Cheddar Kielbasi “isa combination of lean beef andpork, Italian spices, and a blend offine and coarse shredded cheddarcheeses,” it said.

■ Sideways Inc., a Cleveland com-pany that turns books, magazines

and other publications into multi-media experiences on mobile devices, and the Rock and Roll Hallof Fame and Museum last week released the first Rock Hall app forthe iPad and iPhone.

The app is a showcase of the“Songs That Shaped Rock and Roll”interactive exhibit. The songs, selected by the museum’s curator-ial and education staff as well asrock critics and historians, chart theevolution of rock ‘n’ roll since the1920s. The app sells for $1.99 in theiTunes store.

Sideways said the app featuresmore than 600 songs and includesa slide show that users can swipethrough to experience the musicfrom a specific decade between1920 and 2006. Once a decade is se-lected, the app features an albumcover slideshow to scroll through

and select music. Users then can playthe song sample from iTunes, pur-chase the song or add it to a customplay list contained within the app.

The app “allows our visitors totake a piece of the museum homeand at the same time shares the experience with music lovers whohaven’t had the opportunity to visit,” said Todd Mesek, vice presi-dent of marketing and communica-tions at the Rock Hall, in a state-ment. He added, “While this is ourfirst foray into apps, down the roadwe hope to develop others with different themes.”

Eliza Wing, founder and presidentof Sideways, said the app “was agreat, fun opportunity to showcasesome of the best music of all time.”

■ Sales of new cars and trucks inNortheast Ohio increased 33% in

March compared with the likemonth of 2010, according to statis-tics released by the Greater Cleve-land Automobile Dealers’ Associa-tion.

“While we were expecting an increase in sales due to pent-up demand in the marketplace, thesefigures also represent a nice bumpin business, which is due in part tothe increase in traffic we saw at theCleveland Auto Show this year,”said Louis A. Vitantonio Jr., presi-dent of the auto dealers group, in astatement. Consumer traffic at theCleveland Auto Show was up morethan 13% this year, according to theGCADA.

The top-selling Northeast Ohiobrand is Chevrolet, which saw anincrease of more than 78% to 3,705sales in March from 2,080 sales inMarch 2010.

BRIGHT SPOTS


A free man for two-and-a-halfyears, Mr. Christian, 55, is seeking toput what he sees as his strengths asa business person — in particular,an ability to cultivate innovation —to use in two ventures.

One, called the Number 12 Foun-dation, is a nonprofit that Mr. Chris-tian says has the mission of “savinglives and families from the diseaseof alcoholism and addiction bybuilding bridges to lasting recovery.”

The other, a consultancy calledRevenue Beast, is in Mr. Christian’sold wheelhouse, as it focuses on accelerating revenue for clients.Both are run from a Beachwood office building that shows its ageand is a far cry from Mr. Christian’sfancy former Christian & Timbersoffice, which, he notes a coupletimes, had a private bathroom.

Unlike the carefree days of moneyand media attention, Mr. Christianduring the conversation last weekexpressed considerable nervous-ness about how he would be portrayed in this story. He has threeboys, ages 14, 11 and 9, now centralto his life, “and they’ve been hurt alot,” he says. The kids are at sensi-tive ages, Mr. Christian says, and heworries that fresh attention to hispast might hurt them more.

Mr. Christian, who got divorcedin 2004 from his wife, remarried herin February 2010. He says he nowhas “a different kind of life,” onethat involves going home afterwork, cooking dinner and helping

the boys with their homework.But, as a recovering addict, Mr.

Christian is mindful about not taking anything for granted.

“I’m absolutely not a saint,” hesaid. “I try to do the right thing now.But I’m very human. I want to getmy way. I’m stubborn. I take eachday slowly. I have a need to make upfor things.”

Step by stepIn prison, Mr. Christian said, he

began thinking seriously about hislife and how he might contribute tosociety upon his release. He hadstruggled, on and off, with addictionsince about the age of 35, and almost everyone he met in prisonhad a problem with drugs, alcoholor both. It made sense, Mr. Christiansaid, to direct his energies toward anorganization that seeks to bringabout meaningful recovery.

Mr. Christian lost much of hiswealth as a result of his legal prob-lems and prison stay, but he said hehad enough left to fund the Number12 Foundation with about $100,000.

That money enabled the founda-tion to open a Number 12 halfwayhouse in Kent in 2009 and, in spring2010, a prison program at the MarionInstitutional Correctional Institutethat has “graduated” 62 inmates.Last month, the foundation launcheda second prison program, at theRichland Correctional Institution inMansfield, which has 40 participants.

Mr. Christian said he sees thefoundation’s role as addressing gaps


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Christian: Goals oriented toward helping othersTRACKING JEFF CHRISTIAN

1980: Christian & Timbers founded.The executive search firm steadilyrises to national prominence underMr. Christian, its president.

1999: The company makes wavesby assisting in Carly Fiorina’s hiringat Hewlett-Packard; Ms. Fiorina wasthe first female CEO of a major com-puter company, and joined a short listof females leading Fortune 500 outfits.

2003: Mr. Christian sells his stakein Christian & Timbers.

December 2006: Mr. Christian indicted on reckless homicide and involuntary manslaughter chargessurrounding the death of 31-year-oldThomas Wasil. Mr. Wasil’s brothersays the death certificate showed

cocaine, acute heroin and ethanol inhis brother’s system.

April 2007: The family of Mr.Wasil files civil lawsuit in PortageCounty Common Pleas Court.

July 2007: Mr. Christian pleadsno contest to reckless homicide andis found guilty. “He was partying withpeople, and bad things happen whenyou party with people and drugs,”one of his attorneys, Jerry Gold,said at the time. “Under the criminallaw, if you contribute in any way,you’re responsible. It was a hard situation.”

October 2007: Mr. Christian sen-tenced to three years in prison. “I amtruly sorry for the harm I have caused

by my irresponsible behavior,” he saidat the sentencing hearing.

October 2008: Released fromprison.

Spring 2009: Mr. Christian forms the nonprofit Number 12Foundation. He says its mission is“saving the lives of addicts and theirfamilies’ suffering from the diseaseof alcoholism and addiction by building bridges to lasting recovery.”

Summer 2010: Mr. Christianlaunches the for-profit RevenueBeast, which bills itself as finding “themost innovative ways to increaseclient revenue.”

SOURCES: CRAIN’S ARCHIVES, BLOOMBERGBUSINESSWEEK

that exist in treatment centers, detoxcenters, jails, prisons and probationdepartments. He said the founda-tion’s program augments the tradi-tional 12-step recovery program ofAlcoholics Anonymous with an emphasis on “getting participantsto help others as soon as possible.”

Cuyahoga County CommonPleas Judge David Matia, whoserves as the judge for the Cleve-land and Cuyahoga County DrugCourt, invited Mr. Christian in February to address graduates ofthe year-long Drug Court programaimed at reducing recidivism rates.

Judge Matia said Mr. Christian“hit it out of the park” with his address, which laid bare the pain

caused by his addictions.“Jeff’s doing the right things to

stay sober and help others,” JudgeMatia said of the Number 12 Foun-dation’s work. “Here’s a guy whowas at the top of the mountain andnot only fell down, he fell off. …Your ego can get you in trouble. Jeffdefinitely knew all about that.”

In conversation, Mr. Christian isquick to cite data that he said backsup the need for organizations suchas the Number 12 Foundation. Addiction, he says, costs society“close to half a trillion dollars per year,”about $300 billion of that in healthcare costs alone. The United Stateshas less than 5% of the world’s pop-ulation but about 25% of its prison

population, which he said is partlya reflection of the country’s massiveuntreated drug problem.

Mr. Christian said the four staffmembers of the foundation and vol-unteers who work on its programsspend much of their time monitoringthe progress of people who startedNumber 12 Foundation initiativesin prison and now are trying to keepclean on the outside.

“The goal is that they start tohave a life of recovery in prison …and when they leave, we wrap ourarms around them,” he said.

Something in commonTo fund the Number 12 Founda-

tion’s ongoing operations, Mr.


“In emergency medicine, they always say, ‘If you buildit, they will come,’ and they sure did.” – Barb West, administrative director of emergency services, MetroHealth

“(Health care reform) is not goingto minimize the volume in the emer-gency department because there arenot enough doctors to serve the 32million additional people who aregoing to have insurance,” saidThomas Selden, president and CEOof Southwest General Health Center.“They’re going to seek care, andthey’ll have insurance rather than a‘please-don’t-charge-me’ card. Theyknow a hospital will see them.”

Southwest General converted itsurgent care clinic in Brunswick to a24-hour emergency department in2009, and ultimately built a new ERfacility for the location. It’s a movehospitals officials thought would alleviate the pressure facing itsemergency department at its mainMiddleburg Heights campus; that ERwas built to absorb 35,000 patientsannually and now serves as many as50,000.

Though business at the new emer-gency room has thrived, it hasn’t relieved the pressure at Southwest’smain campus, Mr. Selden said.

“We hoped the new one (inBrunswick) would pull off some ofthat capacity, but it was all new volume for us,” he said.

So, the health system plans tobuild a new emergency room on itsmain campus. Though the plans arein their infancy, the hope is to breakground next spring.

Easing the crunchUniversity Hospitals’ emergency

department at its main campus wasbuilt in the late 1970s to serve about40,000 patients annually. However,patients without health insuranceincreasingly are using emergencydepartments for primary care andthe number of patients far has exceeded what the ER was meant tohandle.

To meet that demand, UniversityHospitals is building a $40 millioncenter for emergency medicine atCase Medical Center on Euclid Avenue. At present, UH’s emergencydepartment annually serves 73,000patients a year; the new one shouldaccommodate more than 80,000.

“I hope we’ve built it efficiently, sowe can downsize it as we need to,”said Dr. Fred Rothstein, president ofUH Case Medical Center. “We don’thave to use every room that’s there.We could certainly use it for otherthings if we needed to. But that’s notwhy we did it, but rather to offer thebest environment for care, so we canmake the best decisions for our patients.”

Summa Health System is pushingto expand its emergency services operations by overhauling its currentemergency room space at its AkronCity and Barberton hospitals. Bothemergency departments are about50% overcapacity, hospital officialssaid. Akron City’s new space, whichwill cost $49 million, will increase toabout 60,000 square feet and 75beds; the current space sits at about20,000 square feet with 43 beds.

MetroHealth Medical Center,which opened its remodeled emer-gency department on Cleveland’sWest Side in 2004, expected it wouldtake about 10 years to reach 100,000annual patient visits, but that’s notquite what happened.

“In emergency medicine, they al-ways say, ‘If you build it, they willcome,’ and they sure did,” said BarbWest, MetroHealth’s administrativedirector of emergency services. She


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ER: Primary care doctor shortages a concernChristian started Revenue Beast lastyear. He says he splits his time evenlybetween the foundation and the for-profit business.

He doesn’t have a lot of patienceor inclination to do traditional non-profit fundraising or grant writing, sohe uses about 20% of the revenuegenerated by Revenue Beast to cover the foundation’s operations.Mr. Christian declined to providespecific revenue figures for RevenueBeast, but said it’s growing quicklyand is “funding Number 12 and providing some limited income tome.”

In a reflection, perhaps, of theirsymbiotic relationship, RevenueBeast shares in its goals some of thelanguage of recovery used by theNumber 12 Foundation.

Revenue Beast’s web site, for instance, promises a “5-step formula”for revenue growth: discovery, iden-tifying revenue accelerators, branding,“productizing” and “constructingthe recurring revenue platform.”

With Revenue Beast, Mr. Christianclearly has some aspirations to getback into a big-time business opera-tion. In the last two months, for instance, Mr. Christian has issuednews releases commenting on topicsas diverse as the political turmoil inEgypt and nationwide trends in CEOcompensation.

Simon Clark, managing partner atClark Langdon Partners, a boutiqueexecutive search firm based in Monaco,says he has been working with Mr.Christian and Revenue Beast forabout six months. He hadn’t heardof Mr. Christian before last summer,when he read “The Headhunter’sEdge,” a book Mr. Christian wrote in2002.

Impressed by the book’s adviceand in need of help in growing ClarkLangdon, Mr. Clark turned to the Internet to make contact with theauthor. He wasn’t dissuaded by Mr.Christian’s legal problems; Mr.Clark, 35, said he was an alcohol anddrug addict who entered AA and hasbeen sober for eight years.

“It just inspired me to give him acall,” Mr. Clark said. “We startedsharing some experiences. … Whathappened to Jeff is what happens toaddicts. It didn’t faze me.”

Mr. Clark said Clark Langdon’swork with Revenue Beast “hashelped us upscale the business” byestablishing practice areas focusedon CEO and board searches, refiningits web site and sharpening thefirm’s branding strategy.

“We work together quite a lot,” hesaid, though that work is done viaSkype and video or conference calls.

Mr. Christian sees his work at Revenue Beast as primarily abouthelping clients create “screamingbrands” that are “incredibly com-pelling” to potential customers.

Human natureAt the Number 12 Foundation and

Revenue Beast, one of the few visiblevestiges of Mr. Christian’s former busi-ness life is the table — a bit nickedup, to be sure — that he used at hisformer Christian & Timbers office.

He addresses his drug and alcoholbackground head on, but otherwisedoesn’t care to dwell much on thepast.

Without going into detail, Mr.Christian said he has “madeamends” with many people, thoughin some cases that’s not possible.

He’s heartened by the general response he receives from people heworks with or sees socially.

“People have been really, reallysupportive,” he said, though he’sknowing enough to note, “What arepeople going to say to your face?” ■

said 99,671 patients visited theemergency department last year.

First impressions countStill, it’s not all about capacity

concerns. Keeping an emergencyroom fresh and modern has become a vital part of doing busi-ness in Northeast Ohio’s competi-tive health care market. Hospital officials say patient perception ofpast ER visits is a strong indicator ofwhether they’ll return for futurecare. So, not only are the health caresystems investing in better work-spaces for the present, but also intheir futures, too.

“It definitely affects how theyview the hospital,” said Dr. MichelleBlanda, chair of emergency servicesat Summa Health System. “First impressions are lasting impressions.”

The Cleveland Clinic recently upgraded its emergency departmentat Hillcrest Hospital in MayfieldHeights as part of a $163 millioncampus upgrade and will do thesame at Fairview Hospital on Cleve-

land’s West Side as part of a $76 mil-lion investment there. Officials atboth hospitals said the renovationswill allow them to see more patientsand will improve the patient experi-ence.

But hospitals don’t necessarilyneed a wrecking ball to bolster consumer approval. MetroHealthretooled some its ER operations toboost efficiency. Now, with a portion of the ER waiting room leftunoccupied, the health systemplans to use some of that space tobuild three new clinical rooms forits ER, a nurse’s station and an office — a project expected to cost$300,000 to $350,000.

Beyond the mothershipNot all of the bricks-and-mortar

work to create more ER space is takingplace in traditional hospital settings.

Like Southwest General, otherhealth systems are building free-standing emergency departmentsin other locations. This push comesas many health systems look to

offer patients convenient sites awayfrom their main campuses — a movethat helps lure more patients awayfrom competitors.

“We look at where we want to gofrom a market standpoint, where wewant to get our patients in the com-munity and where they need to havea better ability to access our healthsystem,” said Brant Russell, vicepresident of clinical and support ser-vices at Summa Barberton and SummaWadsworth-Rittman hospitals.

In Twinsburg, both University Hos-pitals and the Clinic are building facil-ities with 24-hour emergency de-partments. The Clinic also isconstructing a $96 million, 180,000-square-foot health and surgery center in Avon — slated to open inDecember — that will offer primarycare services, specialty services anda 24-hour emergency room.

And Summa is building freestand-ing emergency departments inGreen and Medina, for which thesystem will hire a total of about 90employees to staff both locations.The Medina site, for one, will allowSumma to tap into a growing market.It opened a health center in the regionlast fall, and physicians and the com-munity clamored for a local ER. ■



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StreetsboroAuction

4.5 acres – 303’ X 700’9131 S.R. 43

Zoned Commercial

Wed. 4-27-11, 11:00

Hofmeister RealtyHarry Hofmeister, Auctioneer

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1441-1535 Mentor Ave., Painesville, OH

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EXCELLENT VALUE ADDED RETAIL OPPORTUNITY!

Painesville Commons Shopping Ctr, 142,000 SF

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LAND AUCTION!

Off-site Due Diligence Seminar at Chartwell Group Headquarters: 1301 E. 9th St., Cleveland, OH 44114. Friday, May 6 At 1:00 PM

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Retail Stores & Apartments. Entire block bordered by School St. & W. Grand St. (200’ Frontage) in the heart of Berea’s Business District. 3 Commercial storefronts & house w/ 4 rental units. Approximately 10,600 SF of Commercial & 2,400 SF of Residential. Excellent Investment Opportunity. Current NOI @ 100% occupancy is $57,547.

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130-148 Front St., Berea, OH 44017

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Currently 75% Occupied with a NOI of $63,682. Projected NOI @ 100% Occupancy $78,461. Originally built in 1974 with an addition in 1988. Many Capital improvements including, new A/C units & updated electrical & plumbing. Excellent opportunity for investor or user/investor to add value and increase income. Located within walking distance of public transportation, major lifestyle centers, retail, restaurants, & entertainment venues in the terrific suburb of Cleveland Heights.

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2940 Noble Road, Cleveland Hts, OH 44121

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Well located off SR 44 and 1/4 mile South of I-90, this property was built in 1971 with a 12,000 SF addition in 1994.12’- 20’ clear ceilings, 6 docks, 1 drive-in door, overhead gas unit heaters, 277/480V/3P with power and distribution throughout. Seller would consider 10,000 SF leaseback. Terrific opportunity for user, investor, or user/investor. Property lends itself well for multi-tenant occupancy.

BANK DIRECTS IMMEDIATE SALE!

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OF: $455,000 (Only $10.00/ Sq. Ft.!)

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Eaton Corp.’s Craig Arnoldhas potential that is red hot■ It must be a bit of an awkward honor forThe Wall Street Journal to tell the world thatyou’re among “the hottest candidates forplum C-suite positions,” but Craig Arnold ofEaton Corp. was in just that position last week.

Mr. Arnold, 50, one of two chief operatingofficers at Eaton, was one of 12 such execu-tives profiled in The Journal. The newspaper

said the lineup was compiledfrom an informal poll of 21recruiters at 10 big and smallU.S. search firms. Each of the12 top picks was endorsed byat least three of these firms.

Here’s why Mr. Arnoldmade the cut: “As operatingchief of Eaton’s industrial sector, he oversaw 53% of thediversified manufacturer’s total 2010 revenue of $13.7

billion …,” The Journal wrote.“Revenue surged 22% to nearly $7.3 billionin the industrial sector, compared with 16%for all of Eaton. The company has had astreak of double-digit profit and sales gains.He has done much of the heavy lifting as thecompany expands into new product areas.”

Mr. Arnold declined to comment. Onlyone of the 12 — Eric Wiseman, CEO of apparel company VF Corp. — talked in anyfashion, and he did it in a colorful way.

“Some of the recruiters said they havetried to interest him in leading a larger busi-ness outside of the apparel industry, butMr. Wiseman likes his current outfit,” TheJournal reported. “He reinforced that mes-sage recently when he grabbed a Journal re-porter’s recording device and declared, ‘Tomy board of directors, I love all of you andam really happy to be here.’”

FDIC’s big case vs. formerAmTrust parent wears on■ Jury selection is set to begin today, April18, in U.S. District Court in Cleveland in theproceedings brought by the Federal DepositInsurance Corp. against AmFin FinancialCorp., the former holding company of failedAmTrust Bank.

The selection process begins a year afterthe FDIC sued AmFin in April 2010 for$518.5 million, alleging AmFin failed to honora commitment to keep the Cleveland bankcapitalized. AmFin counters it never madesuch a commitment.

The FDIC filed its motion after AmFinfiled for Chapter 11 bankruptcy protec-tion in late November 2009, only daysbefore the FDIC took overAmTrust Bank.

If the FDIC prevails, therewould be nothing left to dis-tribute to other AmFin creditors,said Philip Oliss, one of the Squire,Sanders & Dempsey lawyers who’srepresenting AmFin. Even if theFDIC does not win the case, debtors believe the agency still would end up thelargest creditor.

An FDIC win could set a precedent andhold bank holding companies to a new stan-dard, Mr. Oliss said.

“If they’re successful in this, I think we’regoing to see more and more of these cases,”he said. “I think … (the FDIC) see increasedbank failures, and they’re trying to come upwith a new tool to gain an advantage inbankruptcy proceedings.”

A Baker Hostetler attorney representing

the FDIC declined comment last week.As for the AmFin bankruptcy case, a plan

of reorganization has been filed, but not approved. — Michelle Park

Downtown Hampton Innin store for makeover■ Concord Hospitality Enterprises Co., ahotelier with Northeast Ohio roots, is ven-turing into downtown Cleveland’s hotelmarket after buying a stake in developerJohn Ferchill’s Hampton Inn, 1460 E. Ninth St.

“We believe it’s an opportune time to invest in downtown, with the newmedical mart under constructionand the planned casino,” GrantSabroff, a Concord senior vice pres-ident, said in an interview. “In our

view, the city is in an early stageof revitalization, which willhave continued momentum.”

An extensive renovation ofthe 15-year-old hotel will

begin mid-year that will posi-tion the Hampton to compete

as if it were a new hotel, Mr. Sabroff said. Hesaid the upgrade is a seven-figure project,but declined to specify a cost estimate. Con-cord began operating the inn April 8.

Mr. Ferchill said Concord approachedhim about taking a stake in the nearly 200-room hotel. “We refinanced it and reformedthe partnership, so now they are in the dealwith us,” he said.

Neither party disclosed terms of thetransaction. However, a deed filed April 8 inCuyahoga County shows Concord paid$500,000 to buy out a ground lease on the

hotel site held by B&M Realty Co.Downtown is not the only place Concord

is expanding in Cleveland. It is a partner inSnavely Development Co.’s planned Uni-versity Circle hotel, and continues to runhotels in Beachwood, Stow and Willoughby.

Concord in 1993 moved its headquarters toRaleigh, N.C., from Mentor. — Stan Bullard

ABA president to speakas part of 2011 Law Day■ Speaking to a large room of lawyers gath-ered for an Ohio State Bar Association annualdistrict meeting last Wednesday, Michael N.Ungar revealed he had “big news.”

Stephen N. Zack, president of the Ameri-can Bar Association, will speak at The CityClub of Cleveland May 6 as part of the 2011Law Day program, Mr. Ungar announced.

“This is a big deal,” Mr. Ungar, presidentof the Cleveland Metropolitan Bar Associa-tion, said later. “There’s no one who is moreinfluential amongst practicing lawyers on anational basis than the president of theAmerican Bar Association.”

Mr. Ungar sent Mr. Zack the invite inMarch. The last time an ABA presidentspoke in Cleveland was Bill Neukom in 2008,according to an ABA spokeswoman.

Mr. Zack’s remarks will center on whycivics education must be a national educa-tional priority, Mr. Ungar said. The Cleve-land bar association’s 3Rs Program, throughwhich more than 500 lawyers volunteer toteach civics in 20 area schools once amonth, has caught the ABA’s attention, hesaid, and is one reason why Mr. Zack is com-ing. — Michelle Park

WHAT’S NEW

COMPANY: Longshot Camera Systems, ClevelandPRODUCT: The Polester

Jim Polster thinks he has the answer foranyone who has ever missed that perfectcamera shot.

His company’s new product, The Polester,is a telescoping camera mount and triggeringsystem that “positions and operates anycompact digital camera at previouslyunimaginable heights, lengths and depths.”

The rig features a retractable string thatextends down to the base of the pole. Thecamera mount portion of the setup attachesto a double-action locking telescoping pole.In turn, the pole has a handle with a releasebutton that enables the user to extend it tothe necessary position.

In a video on his web site, Mr. Polster saysthe Polester enables users to shoot pictureswithout the fears and risks associated withclimbing a ladder, entering a confined spaceor (with the right camera) going under water.

“This system will take your camera justabout anywhere,” he says.

For information, visit www.LongshotCameraSystems.com.

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

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK APRIL 11 - 17


Excerpts from recent blog entries on CrainsCleveland.com.

BEST OF THE BLOGSThe 30-30 club is the place tobe, in baseball and business■ John Dorfman, chairman of ThunderstormCapital in Boston and a columnist forBloomberg News, sang the praises of CliffsNatural Resources Inc. in an April 11 pieceabout the 30-30 club — companies that“achieve a 30% return on stockholders’ equity in its latest fiscal year and show 30%average annual earnings growth over thepast five years.” (As opposed to baseball’selite group of players who hit 30 homersand steal 30 bases.)

There were a lot of familiar names on thelist — Coca-Cola, Apple and the like — butMr. Dorfman said Cliffs, the Cleveland-based iron ore producer, was one of themore exciting picks.

“In addition to benefiting from an economic recovery in the U.S., I figure Cliffswill continue to export heavily to Asia, espe-cially China,” Mr. Dorfman wrote. “In 2010it sold $1.3 billion of its commodities to Chinaand $311 million to Japan, which faces extensive rebuilding needs.”

In real estate, as in life,Clevelanders hang tough■ Clevelanders can be pretty stubbornwhen it comes to a lot of things, including,apparently, real estate.

Fortune pulled out some data from Trulia.com, a real estate web site, and reportedthat Cleveland ranks among the marketswhere home sellers take the longest amountof time to cut their initial listing price.

New Yorkers wait 80 days, the longest inthe country, before cutting their prices, butCleveland is in a group of seven cities whoseresidents wait 70 to 79 days on average, according to the Trulia data.

By contrast, Minneapolis led as the mar-ket quickest to slash prices, at an average of45 days.

The big story: First, it was American Greet-ings Corp. Now, it’s Diebold Inc. that has managed to extract a big package of financial incentives from the state of Ohio to keep itsheadquarters in Northeast Ohio. The maker ofautomated teller machines and bank securityequipment announced plans to construct a consolidated corporate campus that it said “willform an expanded world headquarters in theAkron/Canton region.” The company, currentlybased in Green, said the state has committed $56million in tax credits, loans and other incentives.Pending approval by relevant state and localgovernment boards, the company will receiveabout $100 million in total incentives from stateand local entities. To qualify for the incentives,Diebold will need to retain 1,500 jobs in Ohio.

Expanded options: Business is looking upfor Flight Options LLC — so much so that theprovider of private jet services based in Rich-mond Heights is looking to recall more of its pilots and is planning to add planes. Flight Options said it plans to recall up to 24 furloughed pilots in phases, with eight pilots initially re-enteringactive service this month. They will join a teamof 311 pilots, including eight previously furloughed pilots that were recalled in March.CEO Michael J. Silvestro also told Crain’s thecompany in 2011 plans to add 15 aircraft to itsfleet of 102 jets.

Something to build on: The launch of theCleveland Medical Mart and Convention Center and other projects is pacing a surge inNortheast Ohio contracts for future constructionspending. Contracts for nonresidential construc-tion this year through the end of February in theCleveland Metropolitan Statistical Area climbedalmost three-fold, to $638 million from $223 mil-lion in the like period of 2010. However, a con-tinued decline in planned residential construction activity somewhat dampened theoverall figures from McGraw-Hill Construction.

A new vision: The Cleveland-CuyahogaCounty Port Authority is planning for wind tur-bine shipping and assembly in its future, even as

it sketches container ship-ping and cross-lake ferrytraffic into its master plan.The plan is expected to becompleted in the next 60days. It focuses on the PortAuthority’s cargo-handlingbusiness, and its most opti-mistic growth scenario anticipates total cargo ton-nage growing to 2.5 milliontons in 2030 from 450,000

tons a year at present.

Seeking a spark: Blue Spark Technologies,a Westlake company that makes thin, flexiblebatteries, has a new CEO. Norbert Dawalibireplaced Gary Johnson as chief executive. Mr.Dawalibi is a former IBM executive who for thepast five years has been CEO of Toronto-basedSirit Inc., a radio frequency identification tech-nology company. Blue Spark did not elaborateabout why the change was made.

He’ll be missed: High-profile industrial realestate broker Ken Fleming, 67, died April 11 after aprotracted illness. A veteran of more than 30years in the region’s commercial real estate busi-ness, Mr. Fleming most recently was a vice pres-ident at Mohr Partners. For years, he ran the industrial unit of Grubb & Ellis Co.’s Clevelandoffice after a similar role at Cragin Lang Free &Smythe. He also chaired the Greater ClevelandReal Estate Organizations, an umbrella groupdesigned to strengthen the industry’s voice onregional economic and real estate issues.



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