By JOHN BOOTHjbooth@crain.com

V isually, Landerwood Plaza is unremarkable. The 46-year-old,two-story shopping center on

Pinetree Road in Pepper Pike has nothingresembling European-inspired facadesor faux small-town streetscapes.

But with two new tenants set to openover the next few months, and otherlongtime occupants having recentlyunveiled expansions, Landerwood isholding its own in the age of thelifestyle center.

07148601032

634 SPECIAL SECTION

TECHNOLOGYBlogs, cyber lives could affect job seekers’employment chances. ■■ Page 11PLUS: ON THE JOB ■■ ADVISER ■■ WEB CONFERENCING ■■ & MORE

www.crainscleveland.com

SURVEY SHOWS BETTEROUTLOOK ON LAYOFFS■ An August survey conducted bythe human resources group Employers Resource Council andSBN Cleveland shows that only 8%of 168 Northeast Ohio employerspolled anticipate layoffs in thecoming year. That’s lower than the 12% of surveyed employerswho predicted layoffs last year.The annual survey includes information on workplace practicesand policies as reported by areaemployers and is used as a work-place indicator for the region. — David Bennett

AKRON-BASED BROKERUNDER NEW OWNERSHIP■ Akron brokerage firm Shepard & Vrbanac Securities Inc. has beensold. The buyer is Steven C. Ingram,who worked for about 20 years atRaymond James Financial ServicesInc.’s Canton office and purchasedthe business for an undisclosedprice from 81-year-old Robert W.Vrbanac. — Shawn A. Turner

RTA AWARDS $600,000FOR EUCLID AVENUE ART■ The Greater Cleveland RegionalTransit Authority awarded threecommissions, worth a total of$600,000, for public art for EuclidAvenue. The installations will complement the under-construction$168 million Silver Line bus/rapidtransit at three locations — Playhouse Square, University Circle and the East Cleveland station. Contracts were awardedto local artist Stephen Manka($200,000), landscape architectScott Murase of Portland, Ore.($250,000), and New York City’sStudio NY LLC ($150,000). — Jay Miller

PARMA HOSPITALSNUFFS OUT SMOKING ■ The campus of Parma CommunityGeneral Hospital on Nov. 16 willbecome completely smoke-free.Smoking will not be permitted anywhere on campus, including inparking lots and at off-site, hospital-owned buildings such as the newWellPointe Pavilion in BroadviewHeights. — Shannon Mortland

$700,000 ALLOTTED TOHISTORICAL SOCIETY■ The Western Reserve HistoricalSociety will receive $700,000from the Ohio Cultural FacilitiesCommission to upgrade its heating,ventilation and air conditioning system in the library and Halle Collection wings. The commissionpreviously provided $300,000 to the society to update its infra-structure in the Crawford Auto-Aviation Museum and in its centralannex area. — Shannon Mortland

LATENEWSN

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APER

Entire contents © 2006 by Crain Communications Inc.

Vol. 27, No. 34/$1.50 AUGUST 21 - 27, 2006

WATTS UP■■ NONPROFITPURSUES SOMEBRIGHT IDEASTO ENCOURAGEUSE OF SOLARPOWER. PAGE 7

NorTech solicits state for $15M

By BRANDON GLENNbglenn@crain.com

Several local incubators and investment funds are hoping tomake life a little easier for Northeast

Ohio entrepreneurs. Easier to the tune of nearly $23

million in assistance.A group led by regional technology

advocacy group NorTech has sub-mitted a proposal for $15 million in

state funding as part of Ohio’s ThirdFrontier Program, a 10-year, $1.6 billion high-tech initiative that wasestablished in 2002. To qualify forthe award, the state requires thegroup to come up with $7.5 millionin matching funds.

“We’ve never seen (from the state)this kind of money ready to invest inentrepreneurs and innovation,” saidNorTech president Dorothy Baunach.

“It just hasn’t happened.”NorTech is submitting the proposal

under the Third Frontier’s so-calledEntrepreneurial Signature Program,which was established to boost tech-nology-based startup activity. Forthe first time, the Third Frontiergrants will be regionally driven, according to Merle Madrid, aspokesman for the Ohio Department

Group would use Third Frontier money,matching funds to boost tech startup activity

ASSERTING INDEPENDENCELanderwood Plaza’s small, local retailers thriving

despite lifestyle centers’ popularity

“We’ve always recognized the potential for success in independent retailers.” – Art Treuhaft, president of The Keyes-Treuhaft Co., which owns Landerwood Plaza

Asset dropmeans cutsfor ShakerInvestmentsBy SHAWN A. TURNERsturner@crain.com

Shaker Investments in Beach-wood has moved into a smaller office and cut its staff as the firm’sassets under management havedropped by about 30%, or $158.3million, during the past year.

The firm, which invests primarilyin small-cap growth stocks, reportedassets under management of $365.3million as of April 30, according todata collected by Crain’s ClevelandBusiness for a list of the region’slargest local money managers. Thefirm as of April 30, 2005, reported assets under management of $523.6million.

As the firm’s assets under manage-ment have gotten smaller, so too hasits office and work force.

Last month, Shaker Investmentsmoved into a 5,000-square-foot office at 3690 Orange Ave. in Beach-wood, which is within sight of thefirm’s former 12,000-square-footspace in the Chagrin Highlands office park.

“This is plenty of space for us,”president Edward P. Hemmelgarnsaid. “We thought we would grow intoit (the 12,000-square-foot location),but we didn’t need to.”

Shaker’s employment in Beach-wood has dipped as well, to 13 workers from 17 or 18 people a year

See PLAZA Page 6

See SHAKER Page 4

See NORTECH Page 5

RUGGERO FATICA

ABOVE: Sherri Knuth Bryan, left, co-owner of Knuth'sin Pepper Pike, helps Colleen Rogers select outfitsat the Landerwood Plaza store.BELOW: Landerwood Plaza is 46 years old.

CCLB MAIN 08-21-06 A 1 CCLB 8/18/06 2:16 PM Page 1

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Developer and downtown devoteeRick Maron and hiswife Judy Eigenfeldmoved from the suburbs to enjoy lifefrom a suite atop the Holiday Inn Express.

Urban living

MARC GOLUB

CCLB MAIN 08-21-06 A 2 CCLB 8/18/06 1:56 PM Page 1

foot office building at 3201 Enter-prise Parkway.

Mr. Schwartz said ORG and a groupof a half dozen silent investors will paybetween $17 million and $18 millionfor the building when it closes the dealby month’s end.

“It’s more than the $12 million thatthe county values it for, but that’s nothow we gauge value,” Mr. Schwartzsaid. ORG calculates value in terms ofthe quality of the building and its 95%occupancy rate. Moreover, the struc-ture with a huge ornamental lake infront of it is nearly filled with financialfirms, from Charles Schwab and

Raymond James to Kirtland Capital.“It’s like a business community in

and of itself,” Mr. Berns said. “It’s different for us to buy somethingthat’s not broken. Here our improve-ments are on the margin.”

Lakepoint’s high-quality finishescan be traced to its origin. TrammellCrow Co., the famed Texas developer,constructed it when it took a shot atthe Northeast Ohio office market inthe late 1980s and intended the struc-ture to be the first in a bevy of build-ings. Trammell Crow as a developerwithdrew from the region during thecredit crunch; land that was to have

housed other Lakepoint buildingsnow houses Bank of America’s MBNAunit.

In a break with ORG’s typical pattern, it will not take property management and leasing of the build-ing in-house. ORG plans to retain CBRichard Ellis as the manager and leasing agent. CB Richard Ellis alsorepresents Ohio Teachers in the sale.

Tenants in the building were sopleased with the building’s currentoperation that it made sense to retain the present management, Mr.Berns said.

AUGUST 21-27, 2006 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT

THE WEEK IN QUOTES“We’ve never seen (from the state)this kind of money ready to investin entrepreneurs and innovation.It just hasn’t happened.”— Dorothy Baunach, president, NorTech. Page One

“If you want to have a strong inner city, then something mustbe done to bring corporate headquarters and big businessback to the core of the city. BurkeLakefront (Airport) helps do thatnow.”— From a Letter to the Editor. Page 8

“I know of one candidate who was a great fit for a job until the employer Googled his name andfound his blog, which contained a healthy amount of pro-marijuana propaganda. … Thecandidate was quickly passed overfor someone as a result.”— Joel Cheesman, creator of Cheezhead, a Cleveland-based blog. Page 11

Young Figgie’s rolehas Clark-Relianceexpectations highBy DAVID BENNETTdbennett@crain.com

Matthew Figgie says his status as president andCEO of controls manufacturer Clark-Reliance Corp.is temporary. Nevertheless, expectations for his headship, however brief, among the company’sshareholders, board and 150 employees are lofty.

That comes with the territory when you bear a lastname that is etched in the contours of NortheastOhio’s corporate landscape.

Mr. Figgie during the last several weeks has been busyworking on the details of a major consolidation projectat the Strongsville headquarters and manufacturingcomplex of Clark-Reliance. He still would be overseeingthe acquisition and capital investment activities ofClark-Reliance except for the unexpected resignation offormer president and CEO Dennis Pesek, who left June

See FIGGIE Page 7

See ORG Page 7

ORG lands top-tier Beachwood office sitePrincipals value Lakepoint well abovecounty’s mark due to quality, occupancyBy STAN BULLARDsbullard@crain.com

ORG Holdings Ltd. is set to buyLakepoint Office Park in Beachwoodfrom the State Teachers RetirementSystem of Ohio in a deal that realtyinsiders watched closely because ofthe building’s high-profile seller,quality construction and top-drawertenant roster.

The principals of Beachwood-basedORG, Jonathan Berns and EdwardSchwartz, said they competed to buyLakepoint because they wanted to adda top-tier building from an institu-tional seller to burnish their portfolioof more than 1 million square feet ofoffice, industrial, retail and apartmentproperties.

To do so, they’ll pay a premiumfor the 1989-vintage, 119,000-square

“I saw this as an opportunity to finally build my vision with Dr. Collis of what we think the ideal orthopedic and spine care would be.”

– Dr. Louis Keppler, co-director of St. Vincent Charity Hospital’s new Spine and Orthopedic Institute

MARC GOLUB

Drs. Louis Keppler (left) and John Collis will be co-directors of St. Vincent Charity Hospital’s new Spine and Orthopedic Institute,which will allow patients to receive all their orthopedic care in one place, rather than in multiple locations.

A JOINT VENTURECleveland doctors to combine specialties, head St. Vincent

Charity Hospital’s Spine and Orthopedic Institute

By SHANNON MORTLANDsmortland@crain.com

In a $5 million effort, St. VincentCharity Hospital has launched aSpine and Orthopedic Institute totreat people with chronic condi-

tions of the back, neck, bones andjoints.

The institute will bring together all orthopedic and neurosurgery specialties,as well as all care related to those areas,said Dr. Louis Keppler, co-director of theinstitute and an orthopedic surgeon specializing in spine, back and joint replacement.

“Merging orthopedics and neuro- See INSTITUTE Page 7

surgery has a significant advantage inproviding total care for the patient,” Dr.Keppler said.

Whereas patients previously mighthave had to make numerous appoint-ments at several doctors’ offices, they’llnow be able to receive all their care inone place, said Dr. John Collis, co-director of the institute and a neuro-surgeon who specializes in spine, backand neck procedures.

“It will save the patients a lot of time,”he said.

Under the initiative, half of the sixthfloor of the hospital will be gutted to

CCLB MAIN 08-21-06 A 3 CCLB 8/18/06 1:19 PM Page 1

44 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 21-27, 2006

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ago. Among those who have departedare Michael W. Donahoe and JamesR. Janetz, who served as chief financial officer and head of clientservices, respectively.

The firm’s downsizing comes afterthe 2003 departure of about 20 employees who followed DavidWebb, a former partner and hedgefund manager at Shaker, to Verus Investment Management LLC, ahedge fund and money manage-ment firm Mr. Webb started in High-land Hills.

At the time, the departure leftShaker with 29 employees and wasbelieved to have taken away a chunkof the firm’s assets, though a Verusspokesman at the time declined tosay how much money Verus had under management. Verus filed forvoluntary Chapter 7 bankruptcy protection in December 2004 andhas closed its Highland Hills office.

Shaker’s assets under manage-ment have been declining steadilysince at least 2002, when the firmhad $2.3 billion under management.Crain’s in April 2002 ranked themoney manager as the No. 6 largestinvestment firm in Northeast Ohio interms of assets under management.Most recently, Shaker ranked No. 18according to Crain’s research.

While most of the firms on theCrain’s ranking reported gains in assets under management duringthe past year, there were two —Cleveland conservative investmentfirms Boyd Watterson Asset Man-agement LLC and Goode InvestmentManagement Inc. — that reporteddeclines. Neither firm, though, camenear the 30% decline at Shaker. Boydsaid its assets under managementwere down 7.6%, while Goode’s decreased 1.4%.

Mr. Hemmelgarn said the firm’sdrop in assets during the past year is

“kind of reflective of the equity markets we’re in.”

“More volatility has scared awayinvestors,” he said.

The firm’s decline is representa-tive of the lackluster performance ofsmall-cap growth stocks, which havesuffered since 2001, according toChicago-based Morningstar Inc. Thestocks have recorded paltry returnsof just 2.6% during the past fiveyears, according to data from the research company.

Investment firms that focus onsmall- and mid-cap growth are facingsimilar difficulties, said AzimNakhooda, CFO of Cedar Brook Financial Partners LLC, a moneymanagement firm in Pepper Pike.

“It’s a tough environment whenyou’re an aggressive growth manager”like Shaker, he said. “When the markets are roaring, you’re making aton of money. When it’s not, lookout.”

Shaker, which has been in busi-ness for 15 years and also operatesan office in Cherry Hill, N.J., is focusing its investment strategy onthe technology and utility and gas sectors, as well as manufacturers,Mr. Hemmelgarn said.

He said he is confident the firm’sfortunes would improve as stockprices have come down far enoughto provide for good investment opportunities.

“There are more companies ofvalue now,” he said.

The firm has no plans to close itsdoors, Mr. Hemmelgarn added.

“We wouldn’t have moved into anew office” if the firm was going outof business, he said.

Shaker: Small-cap struggles hurt firmcontinued from PAGE 1

In search of broader sectors,ex-Oak officials start BroadleafHudson firm offering about 30 stocks; sets sights on high net worth client

By SHAWN A. TURNERsturner@crain.com

Yearning for a wider scope of investments than they had at theirformer jobs, two former Oak Associ-ates Ltd. officials have gone out ontheir own in starting Broadleaf Part-ners LLC in Hudson.

Douglas S. MacKay and Jeffrey B.Travis, who worked at Oak for 15years and nine years, respectively,said they enjoyed their time at theAkron investment firm. But, theywanted to offer a wider array of sectors than Oak, which, they said,concentrates most heavily in a fewsegments, such as technology andhealth care.

“I wanted to make changes and dothings the way I think they should bedone,” said Mr. MacKay, who is CEOand chief investment officer of thetwo-person Broadleaf. Mr. Travis isthe firm’s chief operating officer anddirector of research.

Through a New York-based publicrelations firm, Hughes Communica-tions Inc., Oak officials declined to

comment.At Broadleaf, Messrs. MacKay and

Travis will get the chance to see if theirstrategy is sound. The firm currentlyhas $15 million in assets under management, and Mr. MacKay saidhe hopes to boost that figure to between $25 million and $50 millionwithin two years.

By comparison, Oak’s assets undermanagement totaled $6.3 billion as ofApril 30, 2005, down 28% from $8.1 billion in 2004, according to the July 17Crain’s Cleveland Business ranking ofNortheast Ohio money managers. Figures for 2006 were not included inthis year’s Crain’s list.

Also within the next couple years,Mr. MacKay said the firm could hireanother five or six workers. Currently,Broadleaf occupies an approximately600-square-foot office inside the 153-year-old Brewster Mansion at 9 Aurora St. in Hudson.

The firm currently offers about 30stocks across seven or eight industries— essentially everything but utilities,telecom and materials, Mr. MacKaysaid.

The high net worth investor is onBroadleaf’s radar, as the minimuminvestment required for the firm’sseparately managed accounts is$250,000.

“It’s a startup, but we’re at thepoint where we can pay our bills,”Mr. MacKay said.

Both Messrs. MacKay and Travishave experience with mutual funds,though that is an offering not yetavailable through Broadleaf.

“In an ideal world, five years fromnow,” mutual fund products would beavailable through the firm, he said.

At this stage in the company’s development, Mr. MacKay addedwith a laugh, “we’ll take whateverbusiness we can get.”

And though he might have disagreed with Oak’s investmentphilosophy, Mr. MacKay harbors noill will toward his former employer.He said he departed “on very goodterms.”

“Oak taught me a lot of things over15 years, and especially at a veryyoung age, that I am very gratefulfor,” he said.

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