Crain's Cleveland Business

$1.50/DECEMBER 13 - 19, 2010Vol. 31, No. 49

07148601032

649 SPECIAL SECTION

SMALL BUSINESSEntrepreneurs give back by donating a portion oftheir revenues to charities ■■ 3PLUS: RAISES RISE ■■ STONE CARVERS ■■ TAX TIPS ■■ & MORE

NEW

SPAP

ER

12 Days of a Cleveland ChristmasYou need some serious cash to afford all the gifts of the 12

Days of Christmas, Cleveland-style. Following in the spirit ofthe annual PNC Christmas Price Index, we determine howmuch various Cleveland-centric gifts would cost you, fromBrowns tickets to rock stars and beer. Check out thelocalized lyrics and our gift list on Page 3.

INSIDE

GETTING LOADEDPort officials take a shot at diverting some imported

liquor shipments from East Coast to Cleveland

By JAY [email protected]

Prohibition-era bootleg-gers used to “import”Canadian whiskey fromacross Lake Erie under

cover of darkness to speakeasies.Now, the Cleveland-Cuya-

hoga County Port Authorityand International Longshore-men’s Association want tobring imported liquor fromoverseas into the Port of Cleve-land in broad daylight.

A spokeswoman for the OhioDivision of Liquor Control saidher agency convened a meetingin Columbus on Oct. 20 to openthe discussion with spirits importers about the feasibilityof rerouting shipments ofscotch, vodka and otherliquors. The shipments, now received at East Coast ports,could be sent up the St.Lawrence Seaway to the docksof the Port of Cleveland.

See LIQUOR Page 9

Nonprofits keep fingerscrossed through holidays

By TIMOTHY [email protected]

The holiday months are a keyfundraising period for many ofNortheast Ohio’s nonprofits andcharities, and so far this year, many— but not all — say they’re on trackto meet or exceed their targetedgoals.

Giving hasn’t rebounded to pre-recession levels, but many nonprofitsare counting on the fundraising visethat hampered their efforts over the

last few years to continue to loosenover the holiday season. Many raisea large chunk of their revenue —some as much as 50% — during themonths around the holidays, andthey’re ramping up their marketingefforts.

“This is a very crucial time, andnonprofits are realizing they can’tjust sit and wait for checks to comein the mail in December,” saidKathy Bergh, program director forthe certificate of nonprofit and

See GIVING Page 8

Organizations close in on fundraising goals

Hyland to take on debt to payshareholdersPlanned $131M dividend distribution signals investor confidence in Westlake software firmBy CHUCK [email protected]

Hyland Software Inc. plans totake on $225 million in debt that itwould use to fund a $131 milliondividend payment to shareholdersand to refinance existing loans.

The Westlake-based documentmanagement software companyplans to secure a $205 million senior secured term loan that wouldbe due in 2016 as well as a $20 million secured revolving credit facility due in 2015, according to

credit rating reports issued byMoody’s Investors Services andStandard & Poor’s Ratings Services.

Transactions in which a companytakes on debt to pay shareholderswere rare during the worst of the economic downturn but havegrown in popularity over the pastfew months, particularly amongcompanies owned by private equityfirms. Thoma Bravo, a private equityfirm with offices in Chicago and SanFrancisco, bought a majority stakein Hyland Software in mid-2007.

See HYLAND Page 22

20101213-NEWS--1-NAT-CCI-CL_-- 12/10/2010 1:17 PM Page 1

“ Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2010 Bank of America Corporation.

We’re committed to Ohio. That’s why we’re helping companies here navigate changing market cycles and create new

opportunities for success. Our client managers are trusted partners who work with you to understand your business

and seamlessly deliver customized solutions based on your unique needs. From term loans through revolving credit

lines, let us help increase your financial flexibility and drive operational efficiencies.

Joseph DiRocco

1.216.925.5396

Side by side. Quarter by quarter. Year after year.Opportunity at every step.

$250,000,000Revolving Credit Facility

Joint Lead Arranger

March 2010

$110,000,000Revolving Line of Credit and Term Loan

Joint Lead Arranger and Syndication Agent

October 2010


Joint Lead Arranger and Syndication Agent

August 2010

$30,000,000Senior Secured Revolver

Sole Senior Lender

June 2010

$400,000,000Senior Notes

Joint Bookrunner

April 2010


Sole Lender

March 2010


Documentation Agent

September 2010


Sole Lead Arranger

June 2010


Lead Arranger and Administrative Agent

January 2010

$200,000,000Increase and Extension of Senior Secured Revolver and Term Loan

Lead Arranger and Administrative Agent

June 2010

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM DECEMBER 13 - 19, 2010

REGULAR FEATURES

CORRECTION

Classified ................21-22Editorial .......................10Going Places ................12Letters .........................11List: Banks, savings institutions............18, 20

Audit Bureauof Circulation

Subscriptions: In Ohio: 1 year - $64, 2 year - $110.Outside Ohio: 1 year - $110, 2 year - $195. Singlecopy, $1.50. Allow 4 weeks for change of address.Send all subscription correspondence to Circulation De-partment, Crain’s Cleveland Business, 1155 Gratiot Av-enue, Detroit, Michigan 48207-2912. 1-877-824-9373or FAX (313) 446-6777.Reprints: Call 1-800-290-5460 Ext. 136

Keith E. Crain: ChairmanRance Crain: PresidentMerrilee Crain: SecretaryMary Kay Crain: TreasurerWilliam A. Morrow: Executive vice president/operationsBrian D. Tucker: Vice presidentRobert C. Adams: Group vice president technology, circulation, manufacturingPaul Dalpiaz: Chief Information OfficerDave Kamis: Vice president/production & manufacturingKathy Henry:Corporate circulation/audience development director

G.D. Crain Jr. Founder (1885-1973)Mrs. G.D. Crain Jr. Chairman (1911-1996)

Crain Communications Inc.

700 W. St. Clair Ave., Suite 310,Cleveland, OH 44113-1230Phone: (216) 522-1383Fax: (216) 694-4264www.crainscleveland.com

Publisher/editorial director:Brian D. Tucker ([email protected])Editor:Mark Dodosh ([email protected])Managing editor:Scott Suttell ([email protected])Sections editor: Amy Ann Stoessel ([email protected])Assistant editors: Joel Hammond ([email protected])SportsKathy Carr ([email protected])Marketing and foodSenior reporter: Stan Bullard ([email protected])Real estate and constructionReporters: Jay Miller ([email protected])GovernmentChuck Soder ([email protected])TechnologyDan Shingler ([email protected])ManufacturingTim Magaw ([email protected])Health care & educationMichelle Park ([email protected])FinanceResearch editor: Deborah W. Hillyer ([email protected])

Cartoonist/illustrator: Rich Williams

Marketing/Events manager:Christian Hendricks ([email protected])Marketing/Events Coordinator:Jessica Snyder ([email protected])

Advertising sales director:Mike Malley ([email protected])Account executives: Adam Mandell ([email protected])Dirk Kruger ([email protected])Nicole Mastrangelo ([email protected])Dawn Donegan ([email protected])Business development manager &classified advertising:Genny Donley ([email protected])

Office coordinator:Toni Coleman ([email protected])

Production manager: Craig L. Mackey ([email protected])Production assistant/video editor: Steven Bennett ([email protected])

Graphic designer:Kristen Wilson ([email protected])

Billing: Susan Jaranowski, 313-446-6024([email protected])Credit:Todd Masura, 313-446-6097([email protected])

Circulation manager: Erin Miller ([email protected])Customer service manager:Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-877-824-9373

A Dec. 6, Page 7 story misstated thepercentage that independentphysicians must pay of their an-nual cash collections to join theSisters of Charity Health Sys-tem’s physician alignment sub-sidiary, Independent PhysicianSolutions. Physician practicesearning $600,000 or less mustpay 7.75%, while those earningmore than that must pay 6.75%.

COMING UP This year’sBook of Lists,which publishesDec. 20, features 44lists, includingour HealthCare Directory,and thousands

of contacts with area organizations. And onJan. 3, Crain’s will publishour 2011 Economic Outlook section that looksat emerging sectors andissues in Northeast Ohio.

Share of household Share of householdexpenditures in U.S. expenditures in NEO

Housing 34.2% 33.8%

Transportation 16.3 15.3

Food 12.9 12.5

Insurance and pensions 11.1 12.2

Health care 6.1 7.1

Entertainment 5.6 5.3

SOURCE: U.S. BUREAU OF LABOR STATISTICS

Category

HOW WE SPEND ITHouseholds in the Cleveland-Akron area spent an average of $45,844 on living expenses in 2009, a figure that’s 8% lower than the national average of $49,778.The biggest area of expenditure was housing (including utilities), where the averageNortheast Ohio household spent $15,483, accounting for 33.8% of total house-hold spending. Northeast Ohioans allocate their dollars in eight major categories— representing 93% of household spending — in similar fashion to their counter-parts nationwide, though more is spent here on health care and insurance:

20101213-NEWS--2-NAT-CCI-CL_-- 12/10/2010 11:08 AM Page 1

business over the next year, far outpacing tightened credit, which16% cited as their chief woe.

“The only thing that people arebidding on in Northeast Ohio is inthe health care industry and some

school work,” said Roger Gingerich,partner-in-charge of Skoda Minotti’sreal estate and construction group.

“You’re starting to see (tax-strapped)municipalities cut back on capitalexpenses,” he said. “In some cases,there is so much competition thateveryone is cutting everyone’s throat.It’s hard to make any money.”

DECEMBER 13 - 19, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT

WEEK IN QUOTES“We seem to be able tohit the mark (eachmonth), so I thinkwe’re coming out of it.Our donors are startingto increase giving orcome back from abreak they’ve taken.”— Natalie Leek-Nelson, presidentand CEO of Providence House.Page One

12DAYSOFCLEVELANDCHRISTMASGood lords-a-leaping: To buy your true love all the gifts in the “The Twelve Days of Christmas”

— beginning with the partridge in a pear tree and ending with 12 drummers drumming — you’dneed $23,439, or 9.2% more than last year, according to the 2010 PNC Christmas Price Index.

The bank has priced the classic list for 27 years; this year, Crain’s Cleveland Business priced itsown. As it turns out, the list we penned costs much, much more, but anything for your true love —and to stimulate the economy — right? Feel free to sing along! — Michelle Park

Contractors’ big worry still lack of workPending projects offer glimmer of hope for long-term constructionBy STAN [email protected]

Concerns over rising health careexpenses, taxes and other costs areless a worry for Northeast Ohio construction contractors than otherbusiness owners because their pri-

mary woe is more fundamental.It’s a lack of work, and it trumps

all other anxieties — though somebig projects in the pipeline, such asthe planned Cleveland casino and theproposed medical mart/conventioncenter, are bolstering contractors’long-term outlook.

That’s the verdict of the latest annual survey of Northeast Ohio’sconstruction and real estate indus-tries by the Skoda Minotti accounting,business and financial advisoryfirm. It found 69% of the contractorswho responded see a shortage ofwork as the biggest threat to their See CONTRACTORS Page 19

Marathons’economicimpacts risewith entriesBy JOEL [email protected]

The Cleveland and Akron mara-thons are keeping stride with the nationwide growth in running, andthe region as a whole is benefiting.

Rite Aid Cleveland Marathon offi-cials last month said registrations forits 2011 event — which includes amarathon, half marathon, 10K andkids race — were up 76% over thesame point last year. That’s a signifi-cant increase because overall partic-ipation in 2010 rose 26% from 2009.

Race officials on a preliminarilybasis estimate 19,000 participants willbe involved in next May’s festivities,which would be a 21% increase fromthe 15,631 runners who raced in 2010.

“The numbers are increasingacross the board,” said race directorRalph Staph.

That jump includes a correspondingrise in out-of-staters and people residingoutside Northeast Ohio, though raceofficials only could estimate thosefigures. Non-Ohioans — includinginternational runners — totaled

Walleye wigglingCOST: $274That’s 12 three-pounders from the lake at

$7.60 a pound.

Rock stars rockingCOST: $5 million if you book 10 SpringsteensThe Boss runs $500,000 per, while John Mayer

costs less at $300,000 an appearance, and Billy Joelruns roughly $1 million.

Ales a-brewingCOST: $20; cab ride home: $2.75 loading fee, plus $2.24 per mile

thereafterThat’s if you pay for the individually sold Great Lakes

bottles; buying two 6-packs would cost less per ale. Either way, you’re further warranting the 21% year-over-year increase in Christmas Ale production.

Ore boats sailingCOST: $300 million, to buy them newOperating the river-size boats, which can carry

21,000 tons of cargo, costs $1,000 to $3,000 anhour.

Browns ticketsCOST: $218Average ticket price is $54.51; being

tackled by an inebriated tailgater will costyou at least $5 more.

Stadium MustardsCOST: $6Rather have two cases? If that amount of mustard

wets your whistle, $64 buys you 24 bottles and ship-ping.

Strudels bakingCOST: $84Each $12 strip at Lydia’s Hungarian Strudel

Shop in Parma Heights is 18 inches filled withyour choice of apple or cherry.

Malley’s sundaesCOST: $12After all six scoops of gourmet vanilla and all

7.5 ounces of hot fudge, redeem thyself with anadult membership to the The YMCA of GreaterCleveland for $660 a year.

... and a pigeon on Public SquareCOST: $2, according to a pigeon dealer... or priceless or worthless, depending on your

point of view. Domestic homing pigeons, unlike theferal ones we typically see, can sell for $10 to $8,000a bird. (Not a misprint. Racing the birds is apparentlyquite lucrative.)

ALL THIS CAN BE YOURS IF THE PRICE — $305,003,205 — IS RIGHT

SOURCES: CLASSIC SEAFOOD MARKET AND PIEROGI PALACE, WEST SIDEMARKET; CLEVELAND STATE UNIVERSITY WOLSTEIN CENTER; GREAT

LAKES BREWING CO.; ACE TAXI SERVICE, CLEVELAND; LYDIA’S HUNGARIANSTRUDEL SHOP, PARMA HEIGHTS; LAKE CARRIERS’ ASSOCIATION, ROCKYRIVER; AMERICAN METAL MARKET; TEAM MARKETING REPORT; YMCA OF

GREATER CLEVELAND; GIANT EAGLE; KC KENNELS AND LOFTS, DAYTON.

See MARATHONS Page 11

“I’m willing to helpyou grow … as long asyou’re willing to helpsomeone along theway.”— Deb Mills-Scofield of Mills-Scofield LLC of Oberlin. Page 13

INSIDE: Results of accounting firmSkoda Minotti’s annual survey of thelocal construction industry. Page 19

Eleven pierogies fryingCOST: $8Most popular pierogi picks at one local

vendor, Pierogi Palace at the West Side Mar-ket: potato and cheese, loaded baked potatoand chicken paprikash.

Slyman’s slicingCOST: $81Open wide: Each $9 corned beef sandwich

packs 14 ounces on rye.

Slabs of steelCOST: $2,500Assuming each slab weighs a ton.



Volume 31, Number 49 Crain’s Cleveland Busi-ness (ISSN 0197-2375) is published weekly, exceptfor combined issues on the fourth week of May andfifth week of May, the fourth week of June and firstweek of July, the third week of December and fourthweek of December at 700 West St. Clair Ave., Suite310, Cleveland, OH 44113-1230. Copyright © 2010by Crain Communications Inc. Periodicals postagepaid at Cleveland, Ohio, and at additional mailing of-fices. Price per copy: $1.50. POSTMASTER: Sendaddress changes to Crain’s Cleveland Business,Circulation Department, 1155 Gratiot Avenue, Detroit,Michigan 48207-2912. 1-877-824-9373.

REPRINT INFORMATION: 800-290-5460 Ext. 136

Tech firm’s Wi-Fi antennas catch on quicklyBy CHUCK [email protected]

Wayne Gartin believes in MP Antenna’s products.

Not only is the chief operating officer of Novarum Inc. working toinstall the North Ridgeville company’santennas in the city of Cleveland andother large metropolitan areas, buthe uses an MP Antenna product toboost his Wi-Fi reception at home, too.

It’s easy to see why: MP Antenna’sproducts provided a 20% larger coverage area in tests Novarum ranto determine what technology touse for one of its municipal Wi-Fiprojects, said Mr. Gartin, whosecompany helps cities, companiesand other groups design and install

wireless networks.Hence, Novarum, which has

offices in Akron and California, isusing MP Antenna’s patented tech-nology as it builds out a Wi-Fi network in Cleveland’s Ward 13,which includes much of the OldBrooklyn neighborhood. The projectwill provide free Wi-Fi to residentsand businesses and is expected togo live early next year.

“We think that these guys are going to give us measurably betterperformance,” Mr. Gartin said.

The improvement is the result of “multi-polarization” technologycreated by co-founder Jack Nilsson.The three-dimensional shape of the antennas allows them to pick upor transmit signals even if they

encounter obstructions that altertheir polarizations. The shape of the antennas also lets them pick up signals in different places, said CEOJoe Bliss.

Projects such as the one in Cleve-land represent just one area of opportunity for MP Antenna, Mr.Bliss said. The company, founded in2008, already sells several antennas,including the Trident, which consumerscan plug into a router to improve Wi-Fi access in their homes.

MP Antenna also aims to winbusiness from government agenciesthat help emergency responderscommunicate. For instance, thestate of Ohio is running tests on thecompany’s antennas in an effort toimprove its Multi-Agency RadioCommunications System (MARCS),used by emergency responders fromdifferent agencies.

Though still running tests, MARCSdirector Darryl Anderson said it appears the antenna will help thestate eliminate gaps in its radio com-munications coverage. Mr. Ander-son said he would recommend MPAntenna products to other agenciesif all goes well.

“It seems like they have devised abetter mousetrap,” he said.

MP Antenna employs eight, thougha manufacturing company Mr. Blissowns, JBS Technologies Inc., providesMP Antenna with back-office servicesas well as space. Though only twoyears old, the company got a headstart by acquiring Manatee Wireless,a descendant of a company Dr. Nilsson formed in 2003 to commer-cialize ham radio antennas.

The company also got a boost inNovember 2009, when it reached asettlement with WiFi Plus Inc. ofBrunswick, which Dr. Nilsson helpedstart, and a group of other companiesand individuals that sell productsbased on some of MP Antenna’s intellectual property. The settlementallows the group to continue sellingonly the multi-polarized antennasalready in their product lineup.

Still, challenges remain. For instance,the group in June filed an appealwith the Medina County Court ofCommon Pleas, arguing over a con-tract that dictates how the licenseagreement is to be implemented.

Plus, many people still see anten-nas as commodities, Mr. Bliss said.

“Everybody thinks antennas areall the same,” he said. ■

PRSA honors Crain’scustom publishing

Fahlgren Mortine Public Relationswon a silver award for its ACGCleveland Advertorial, produced byCrain’s Cleveland Business CustomPublishing. The award was presentedto the public relations firm on Friday,Dec. 3, at the eighth annual PRSACleveland Rocks Awards Luncheonat Windows on the River. The sectionappeared in Crain’s Jan. 18 edition.

IN BRIEF



Higher standards make better lawyers.®

Vorys, Sater, Seymour and Pease LLP Cleveland 216.479.6100 Akron 330.208.1000

www.vorys.com

As parent splits, little change at MoenBy DAN [email protected]

When Fortune Brands Inc. splitsup sometime in the second half of2011, faucet maker Moen will be thesingle biggest brand in a newly independent public company thatwill be formed from what is now theconglomerate’s Home and Securitydivision.

But there’s no chance Moen’sheadquarters in North Olmsted willbecome the new corporate head-quarters of that company, nor willmuch change for the folks at Moen,a Fortune Brands spokesman said.

“The business will remain head-quartered here in Deerfield, Ill.,”said Clarkson Hine, Fortune Brands’vice president of corporate com-munication.

Fortune Brands announced lastWednesday, Dec. 8, that it plans tosplit itself up. Instead of one company selling $6.7 billion offaucets, padlocks, cabinets, boozeand golf balls each year, it will become three separate companies.

Fortune Brands will remain as a liquor company, its Home and Security division that includesMoen will be spun off into a sepa-rate public company, and Titleistgolf ball maker Acushnet either will

go public or will be sold outright.Moen will make up about $850

million of the Home and Securitycompany’s annual sales of about $3 billion, effectively contributingnearly 30% of the business to an operation with 15 brands.

But there was little to no consid-eration given to Moen serving asthe headquarters of the new com-pany when it’s spun off, Mr. Hinesaid. That’s because the Home andSecurity unit’s management andheadquarters structure already areup and running in Deerfield.

“It’s really business as usual,” Mr.Hine said.

There was seemingly no time for local economic development officials to lobby the company to consider a Cleveland-area headquar-ters — nor was there much need,said Tom Waltermire, CEO of TeamNEO, which markets the region tosite selectors and corporations considering a move or expansion.

In the case of Moen, which once was led by Fortune BrandsCEO Bruce Carbonari, there’s noneed to familiarize its parent withNortheast Ohio or its business com-munity.

“They don’t really need our help— it’s not like we have to tell them whatit’s like here,” Mr. Waltermire said.

Not that the move by FortuneBrands to break up its business willbe a negative for the region. Whenthe dust settles, Moen still will beheadquartered in North Olmstedand will be a big fish in a smallercorporate pond as part of a newlyindependent company.

But the presence of another public company actually headquar-tered here would have been a betterthing, said economist Ned Hill,dean of Cleveland State University’sMaxine Goodman Levin College ofUrban Affairs.

“I’d rather have the headquartersof a company here than a division orbranch, because the decisionmakingis here,” Dr. Hill said in an e-mailon the subject.

As it is, Moen supports the localeconomy, including through the useof local contractors. Those compa-nies, too, are counting on their rela-tionship with Moen not changing— and they’re glad for that.

“We have had an outstanding relationship with Moen for 20 years.This change in the corporate struc-ture will not have any impact onour relationship, and we will oper-ate as business as usual,” said RobFalls, CEO of Falls Communica-tions in Cleveland, which handlesMoen’s public relations work. ■

Informal ban on earmarkscould hurt college budgetsBy TIMOTHY [email protected]

The state’s budget woes are aconstant source of concern for collegesand universities in Northeast Ohio,but a potential congressional banon earmarks — colloquially knownas “pork” — could cause a snag forsome of the schools’ burgeoningprograms.

The lawmaker-directed spendingitems known as earmarks don’t account for a huge chunk of collegebudgets, but a million dollars hereor a few hundred thousand dollarsthere can go a long way in starting aprogram, school officials say.

A formal ban on earmarks failedrecently in the Senate. However, it’sstill uncertain whether any legislationcontaining earmarks can make itthrough Congress, given that Republicans in the House agreed toa moratorium on them and Repub-licans in the Senate could filibusterany legislation containing thespending items that some suggesthave become a symbol of waste ingovernment.

U.S. Rep. Tim Ryan, D-Niles, whohas slated earmarks for several universities and colleges in his district, recently told Crain’s that “forall intents and purposes, earmarksare a thing of the past, at least forthe next year or two.”

Without this money, higher edu-cation institutions will need to lookelsewhere — competitive grants orprivate partnerships — for the cash.

The benefactorsThe University of Akron received

about $4 million in earmarks overthe last fiscal year, according toJohn LaGuardia, the university’svice president for public affairs anddevelopment. Mr. LaGuardia saidthe university is awaiting word onseveral appropriations, but he notedwhat will happen when the nextCongress is seated in January is any-body’s guess.

The university recently received a$1.6 million earmark, placed by U.S.Sen. Sherrod Brown, to help launchthe school’s corrosion engineeringprogram. It also received earmarkmoney for its polymer innovation

center, high-technology forensics laband resource center and the researchand development of clean vehicletechnology.

“Every one of those projects encouraged young people (involvedwith them) to consider staying (inOhio),” Mr. LaGuardia said. “Wewant to keep them afterwards. Thesuccess we have also hopefully gen-erates business in the community.”

Over the last 10 years, Kent StateUniversity has received about $12million in congressional earmarks,according to Constance Hawke, itsassociate counsel and associate vicepresident for federal relations.That’s compared with about $20million to $25 million the universityreceives each year in federallyawarded competitive grants.

Ms. Hawke said the earmarksgenerally went toward new initia-tives lacking certain types of equip-ment and where there was no grantmoney available. Some of the projectsfinanced by earmarks include the university’s bio-safety training laboratory and 3D classroom, whichallows researchers to study at thecellular level in three dimensions.

“We’ve never looked to earmarksas our sole-source funding for anyproject,” Dr. Hawke said.

Looking elsewhereRep. Ryan said budgets for the

National Science Foundation andthe National Institutes of Healthhave grown over the last few years,and universities have competed fora larger chunk of that money. Heanticipates their budgets will shrinkover the next couple years, though,as Congress looks to reduce spending.And with fewer, if any, earmarks,the scarcity of federal dollars couldhinder future research projects thatotherwise could create jobs.

The University of Akron’s Mr. LaGuardia said aside from federalgrant money, universities may needto look for more private invest-ments from companies to help fundresearch projects. Regardless, Mr.LaGuardia noted that NortheastOhio’s higher education institutionsare using the earmarked funds for“exceptional tasks that are relevantto today’s society.” ■


YOU FIRST. THE TECHNOLOGY FOLLOWS.

At Time Warner Cable Business Class, we take a somewhat

atypical approach. First we learn all about your business. Once

we truly understand how you work, we develop a best-in-class

technology solution to help you be more efficient. Our goal is

to keep your business up and running, and you focused on

running it. Call us today at 1.877.615.4332. Technology is best

when it meets your needs.

1.877.615.4332 | TWCBC.COM

Internet | Phone | Cable TV | Ethernet

Products and services not available in all areas. Some restrictions apply. Time Warner Cable Business Class is a trademark of Time Warner Inc. Used under license. © 2010 Time Warner Cable, Inc. All rights reserved.


“We seem to be able tohit the mark (eachmonth), so I think we’recoming out of it.” – Natalie Leek-Nelson, presidentand CEO, Providence House

human services management atKent State University.

Those year-end donations — often a way for donors to shore uptheir last-minute income tax deduc-tions — are expected to be on theupswing for about 32% of thestate’s nonprofit organizations, according to a recent survey by the Ohio Association of NonprofitOrganizations. About 47% of the respondents anticipate holiday giving to remain steady, while 21%expect giving to decrease.

Emerging from a rutNationwide, giving has started to

rebound, albeit slowly.

According to a national survey bythe Nonprofit Research Collabora-tive, 36% of charities responding reported an increase in donations inthe first nine months of 2010 fromthe like period in 2009, an improve-ment from the 23% that saw donations rise in the first ninemonths of 2008. Also, the number ofcharities reporting a decline in givingduring that period this year fell to37%, a decline from 2009’s 51%.

“For the first time in a couple ofyears, there’s some cautious opti-mism about the nonprofit sector,”Ms. Bergh said.

Natalie Leek-Nelson, presidentand CEO of Providence House, saidthe Cleveland crisis nursery’s

fundraising efforts for its fiscal yearstarted strong in July, and she expects that trend to continuethrough the holidays. The organiza-tion, she said, has engaged prospec-tive and existing donors with new e-mailed newsletters and a strongerpresence on the Web and social mediasites such as Twitter and Facebook.

Ms. Leek-Nelson said she hopesto raise 27% of Providence House’srevenue in December, and so far thegroup is on track to meet its goal.Also, 90% of the donated goods ituses throughout the year are donatedbetween Thanksgiving and Christmas.

“We seem to be able to hit themark (each month), so I think we’recoming out of it,” she said. “Our

donors are starting to increase givingor come back from a break.”

Still, Ms. Leek-Nelson said Prov-idence House has operated at a28% reduced budget for the last twoyears, and has made only 16 of its26 beds available for at-risk babies.The revenue still isn’t there to restore what had been cut.

Scaling back the missionLikewise, The City Mission

restructured its organization abouta year and a half ago and cut itsbudget by 10% in anticipation ofeconomic pressures that wouldconfront nonprofits, according tothe group’s CEO, the Rev. RichTrickel. Since then, he said, the or-


It’s 2:15 AM; do you know where your money is and whom it’s

hanging around with?

FirstMerit for total Treasury Management Great Treasury Management should be a 24/7/365 commitment. At FirstMerit,

we have specialized and seasoned Treasury Management Officers who will help you get the most out of your money by sweeping it, moving it, adjusting it and simply being proactive with it. We even have

a dedicated Treasury Management Call Center. Get FirstMerit and get more.

More Bank For Your Business™

Call Maureen Murman, your local Treasury Management Representative, at 216-694-5637.firstmerit.com

continued from PAGE 1

Giving: Nonprofits say fundraising efforts paying off

ganization’s budget has become “vi-able and sustainable.”

The cuts mostly were done inter-nally by eliminating some full-timeand part-time positions so as not toimpact the City Mission’s outreachefforts. Still, the group cut back on itsneighborhood ministry program,where anyone could ask the missionfor assistance.

“I don’t think it’s ever minor whenyou can’t serve a group of peopleyou used to serve, so we’re very sensitive to those things,” said MarkCharvat, the City Mission’s chief financial officer.

About 45% to 48% of The City Mission’s annual budget stems fromdonations during October, Novemberand December, Rev. Trickel said. Sofar this year, he noted, the organiza-tion is “slightly ahead” of last year interms of income. “We’re satisfied inhow things are going so far,” he said.

Not everyone can say the same.

Demand outpaces supplyThe Salvation Army of Northeast

Ohio has seen a 15% decline infundraising for this time of year com-pared with the like period in 2009, according to Stella Dilik, the organi-zation’s divisional development director. November donations haddipped slightly, which she attributedto the election season, but they startedto rebound in December.

It’s challenging, Ms. Dilik noted,because while donations have declined, the need for the SalvationArmy’s services is increasing.

“It comes down to the wire,” shesaid. “A lot of people will come out ofthe woodwork but need promptingright now. I feel confident that if weget the word out we’ll be able to meetthe need of those coming to us.”

In order to spur giving, Ms. Diliksaid The Salvation Army has increasedits direct-mail campaign. It’s alsoboosting its online presence and offering a service that allows peopleto donate through text messages.

The Cleveland Foodbank netsabout 50% of its yearly fundraisinggoal in December alone, accordingto Karen Pozna, the organization’scommunication manager. The grouphopes to raise $2.2 million this monthand is on track to do so. Ms. Poznanoted that overall giving has increasedby about 40% over the last two years,but the demand for the food bank’sservices has risen by 50%.

“It’s a kind of a double-edgedsword because the need is continuingto increase. So, we’re doing our bestto keep up with that need,” Ms. Poznasaid. “I think the food bank has been doing very well and has beensuccessful at fundraising, but we stillneed to do more because the needhas been increasing so much.”

Though charitable giving slowly isstarting to grow, nonprofit profes-sionals say it will take several years torecover in full from the recession.Regardless, Rev. Trickel of The CityMission is optimistic about givingthis holiday season.

“Cleveland is an incredibly generoustown. Even for all of its difficultiesand financial stresses it’s under, thepeople of Cleveland are very, verygenerous,” Rev. Trickel said. ■



After ’09 dip, East Side IT outfit ramps upBy CHUCK [email protected]

A harrowing 2009 helpedParagon Consulting Inc. laid thegroundwork for what could be itsbest year ever.

The custom software develop-ment firm plans to double the sizeof its staff during the first threemonths of 2011, said CEO Mark Atwood. The company, which employs 18 today, also is looking foran East Side office that would betwice as big as its 3,500-square-footheadquarters in Mayfield Heights.

The pipeline of work at ParagonConsulting is “as full as it’s ever been,”Mr. Atwood said. The companysought new customers when timesgot tough, and now old customersare spending again.

“Suddenly, we have both,” he said.Paragon Consulting needs 20

more people just to handle the projects it has on hand, Mr. Atwoodsaid, adding that he expects sales to double in 2011. He declined todisclose specific revenue figures.

The growth marks a major reversalfrom 2009, when sales fell 40%. Thecompany responded by seekingmore customers outside of North-east Ohio, developing partnerships

with companies that make tools forbuilding web sites and promotingits ability to develop software forboth smart phones and other hand-held devices. It also won more busi-ness from health care providers,Mr. Atwood said.

Because of those efforts, ParagonConsulting this year expects to recover almost all the sales it lost in 2009. And not only are old cus-tomers spending again, but someare spending more than they nor-mally would because they delayedmany projects, Mr. Atwood said.

“For us it’s going to come backlarger than it was,” he said.

Paragon Consulting already hadthe ability to develop mobile soft-ware, but it started promoting it in2009 as a way to rise “above thenoise of all the IT consulting companies out there doing customapplications,” Mr. Atwood said.

Paragon Consulting also took astep toward broadening its customerbase when it formed a partnershipwith Sitecore, a company thatmakes software that developers useto build web sites for businesses.Sitecore, with its U.S. headquartersin the San Francisco area, eventuallystarted referring clients to ParagonConsulting.

That partnership helped ParagonConsulting establish itself as a “pre-eminent player” when it comes tocreating complex, interactive websites, Mr. Atwood said. The companyalso is in a partnership with anotherweb content management softwaremaker, Bridgeline Software Inc.,and it has built web sites using Mi-crosoft SharePoint and other tools.

Sitecore also helped ParagonConsulting find clients outsideNortheast Ohio. It recommendedthe Mayfield Heights firm to an Atlanta-based startup developing aweb site to help businesses preparefor and respond to crises. That jobgave Paragon Consulting the confi-dence to do more work remotely,Mr. Atwood said.

Paragon Consulting did morethan build a web site for PreparisInc. — it helped the startup figure outhow to build it right, said Dan Kehoe,chief technical officer for the Atlantacompany. Paragon Consulting’swillingness to learn about the busi-ness and build a web site to matchits needs was a big reason the com-pany impressed Preparis during theinterview process, Mr. Kehoe said.

“The way Paragon approached itwas, ‘Let’s understand before we starttalking about ourselves,’” he said. ■

“It was a good exchange,” saidPort Authority president WilliamFriedman. “There seemed to besome interest in the concept.”

To make the idea work, Europeanexporters need to be convinced thatshipping to Cleveland is no morecostly or time-consuming thanshipping through a port such as Baltimore or Norfolk, Va., and that ashipper likely would be available tocarry the cargo to an East Coast portin the winter months, when the seaway is closed.

The longshoremen’s union formany years has been pressing the Port Authority to expand its maritime operations to make morework for local stevedores. Now, witha new maritime leader recentlyhired, the Port Authority is focusingon expanding business along theCleveland waterfront.

John Baker, president of theCleveland-based Great Lakes DistrictCouncil of the International Long-shoremen’s Association, said hewas optimistic the Port Authorityunder Mr. Friedman — who hasbeen on the job less than a year —will work to rebuild the flow of cargo through the Port of Cleveland.He said bringing in the liquor tradeis a good place to start.

Recounting part of the discussionat the Columbus meeting, Mr. Bakersaid, “Some of the local (importers)said, ‘Where have you been all ourlives?’”

Mr. Baker said he even envisionsCleveland as the dropoff point forliquor shipments to many Midweststates around the Great Lakes.

Right time, right placeDirect shipping to Cleveland makes

sense now because of efforts by aBurlington, Ontario, shipping com-pany to operate regular cargo servicebetween Cleveland and Montreal.

The company, Great Lakes FeederLines, announced in October that itwould make Cleveland the U.S. basefor its ship, the Dutch Runner, andthe company is preparing to beginoperations next spring.

Meanwhile, Mr. Friedman is paying more attention to rebuildingdock traffic.

For many years, the Port Authority,because of its ability to issue tax-exempt bonds, viewed itself as asort of public investment firm. Withthe hiring of a new maritime director,

the pendulum is swinging back.David Gutheil, the Port Authority’s

new vice president for maritimeand logistics, said the agency islooking for niche markets to growthe Port of Cleveland.

Sea lanes from Asia to either U.S.coast carry the heaviest traffic, andkeeping the cargo on a boat toCleveland would be slower thantrucking Asian cargo to Clevelandfrom an East Coast port. But, Mr.Gutheil said, it’s actually faster tomove cargo from European andeven Mediterranean ports down theSt. Lawrence than to drop it in NewYork and haul it west by truck or rail.

That’s why targeting Europeanliquor imports makes sense. Mr.Gutheil said importers now bringtheir U.S. cargoes to a single locationon the East Coast in trailer-size containers. The cargo is moved to awarehouse and broken down intotruckloads for shipping across thecountry.

Spirit-ed discussionTo ship directly, European

distillers instead would move theirOhio-bound containers on shipsdestined for Montreal.

Because the large container vessels are too big to move throughthe seaway locks, containers des-tined for Cleveland would be put onthe Dutch Runner at Montreal andshipped up the seaway. Mr. Bakersaid a ship such as the Dutch Runnercan carry about 700 containers, andhis research suggests Ohio importsthe equivalent of 2,200 containers ofliquor a year.

Robinson Cooper, vice presidentand general manager of Cleveland-based Southern Wine & Spirits ofOhio, said several of his executivesattended the meeting in Columbus.While he isn’t ready to embrace theidea, Mr. Cooper said he’s willing tolisten further.

“It’s very interesting,” he said.“We’re waiting for more informa-tion from them (about costs).”

Mr. Gutheil said he is working upcost and transit time comparisonsto present to the liquor companies,but he believes shipping through thePort of Cleveland can be competitive.

Mr. Baker said a second meetingis scheduled for mid-January,though the change of administra-tions in Columbus has him a littleunsure about the meeting’s likeli-hood. ■

Liquor: Port Authorityaims to boost capability continued from PAGE 1


Standard journalism advice handedto young reporters by seasonededitors over the years always hasincluded a warning against using

a direct quote for your first paragraph.But, man, sometimes they’re so darnedgood, it’s very tempting.

I suppose this belongs in that“stranger than fiction” category, buthere’s an entertaining little tidbit, courtesy of The PlainDealer’s post-blizzard story lastThursday:

“Sgt. Sammy Morris, spokes-man for the Cleveland PoliceDepartment, said that therewere no reports of any majoraccidents and that 22 trafficcontrollers were on city streetsdirecting drivers.”

That is just plain hilarious.Here were my two experiences with

“traffic controllers” as I made my one-hour, six-block drive from our Ware-house District offices to the Inner BeltFreeway.

First, after about a half-hour drive thefirst three blocks, I sat in my car on thatshort block between the state office

building and the old post office. Iwatched a uniformed police officer, bundledin winter clothes, safety vest and goggles,stand outside for several minutes watchingthe cars and their #$*% drivers block theHuron Road intersection ahead of me, inboth directions.

At the stroke of 5 p.m., that officerwalked into the intersection and began

to help clear things. Now, Idon’t care if he was on the city’sclock or working for Forest City,the owner and redeveloper ofthe post office. The fact was he watched this maddeningturmoil unfold and did nothinguntil what I can only presumewas his official shift startingtime.

Now, if I’m wrong, I’ll apolo-gize in this space, and I’ll do it

without the same non-apology apologyoffered by the young man who mouthedoff to a patrolman at bar closing time inthe Warehouse District, but that’s awhole ’nother story.

Now, back to my sojourn Wednesdaynight as I tried to make a 6 p.m. volun-teer board meeting (ha!), and my next

and only glimpse of a police officer.As I finally made it to the corner of

Carnegie and Ontario, I saw a cruiser,lights flashing, blocking the on ramp.The officer simply was sitting in the car,offering no advice to motorists trying toget on the Inner Belt, our multi-highwaybypass/bridge.

The only way I got any advice was byrolling down my window and asking.The officer cracked her window and gaveme some directions, and I was on myway. But do you think she could havebeen doing that outside and actually trying to help some very stressed-outdowntown workers?

All day long on Wednesday, down-town looked like the middle of a Christmassnowglobe. It was beautiful, and I assume the folks just a few short blocksaway at City Hall were seeing the sameweather conditions. Why on earth didthey not have “traffic controllers” at allthe key downtown intersections? Whatwould happen if we had to do an emer-gency evacuation?

Hope, I guess. But as the old clichéproves again and again, hope is not thebest strategy. ■


Caucus? NoW

e respect Stuart Garson, chairman of theCuyahoga County Democratic Partyand a skillful attorney.

However, we object to Mr. Garsonequating a private meeting of select members of thenew county council to a party caucus. The comparisoninsults citizens who voted last year for reform ofcounty government because they were fed up withall its behind-the-scenes wheeling and dealing.

Our friend Bill Wills, morning drive-time host atWTAM-AM 1100, last Wednesday conducted a revealing interview with C. Ellen Connally — thewoman whom attendees of the Dec. 3 private meeting settled upon as their choice for councilpresident — that exposed the gathering in the homeof fellow council member-elect Julian Rogers forwhat it was, and what it was not.

It wasn’t an exercise in good government.It was an exercise in politics and power.If you haven’t heard the interview, we highly

recommend visiting the WTAM web site and clicking on the “Wills & Snyder In The Morning”page under “Shows.” You’ll find it there.

In the interview, Ms. Connally is evasive andstumbles over her own words multiple times as Mr.Wills poses simple, straightforward questions abouthow and why the meeting took place. Here is a sample of their exchange:

Early in the interview, Ms. Connally draws ananalogy between the Dec. 3 meeting and the Repub-lican Party caucus in Washington in which JohnBoehner was chosen as the next speaker of the House.

“So you would call it a caucus?,” Mr. Wills asks.“Yes,” Ms. Connally replies. “Why weren’t … were all Democrats invited?” Mr.

Wills asks.At which point, Ms. Connally begins to hem and

haw, aware that Chuck Germana — a Democraticcontender for the council president’s post who enjoys Republican support — wasn’t invited to themeeting.

“Well, it was — it wasn’t — originally supposed …the people who showed up. I didn’t call this meet-ing. I really didn’t even know who was going to show up,” Ms. Connally says.

“OK, let’s start this way,” Mr. Wills says. “Whocalled the meeting?”

“You know, I don’t, I don’t really remember,” Ms.Connally says. “I got a call and I decided to go overto Julian’s house.”

These guarded responses pop up throughout theinterview. So do comments by Ms. Connally thatexpress frustration with the public and media response to the meeting.

“Everybody is so hung up about this,” she statesat one point. And later: “I think that this thing hasbeen blown all out of proportion.”

No, it hasn’t — not in a county still embroiled inan extensive corruption investigation that has shakenpeople’s faith in the motives of elected officials.

Even against this backdrop, some of the county’snew leaders, blinded by their own ambitions, can’tsee that voters want a new day in government. Theyneed to remove the scales from their eyes, andquickly.

FROM THE PUBLISHER

BRIANTUCKER

Winter wonderland creates wonder

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

SUSANN GEITHNERLakewoodNo. I just don’t think it’s appro-priate. I tend to keep my sociallife and my business life sepa-rate, and I think a lot of peopleshould rather do that.

THE BIG ISSUE

ERICA HOLMANLyndhurstYes, absolutely: inside jokesand just commiserating witheach other.

DAVID KOVATCHWestlakeNo. You never know who’swatching it, never know who’sreading it.

STEVE AUSTINMedinaI am on the Twitters, and wedo occasionally say things. Wemake comments about deci-sions the company makes, butit’s all obfuscated. Names ofthe innocent are changed.

Do you ever make comments on Facebook or in another social media outlet about your company, boss or co-workers?

➤➤➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.



What do You Value?

216.241.3272 or www.meadenmoore.com

Maybe it’s advice from a tax professional year-round,or having personal advisors who are experts in your industry.

Perhaps it’s access to tools to help your business succeed.

We Value that too.

CreatingValue.

Tired of Being Screwed?Then stop hiring fly-by-night “roofing contractors” whose

only office address is wherever their pick-up truck happens to be parked at the time!

The no-insurance, irresponsible operators are driving the few remaining honest roofing contractors out of business. Unless the consumer gets wiser, ultimately there will be no one responsible left! We are looking for a few wise consumers.

If you fit the bill, call

CAREYRoofing Corp.

216•881•1999www.careyroofing.comfounded in 1946MEMBER: National Roofing Contractors Association

LETTERS

U.S. must preserve more than security■ I am writing in response to thelast three paragraphs in Brian Tucker’sNov. 22 commentary regarding histhoughts on airport full-body scan-ners.

It is a slippery slope we are treadingby allowing the invasive full bodyscans and pat downs. Has modestyand respect for basic human dignitycompletely gone out the window?

Aside from modesty, of whichthis world is sorely lacking, these“security” procedures are quicklyturning this nation into a totalitarianstate. Has no one learned anythingfrom history?

The old saw that those who fail tolearn from history are doomed torepeat it bears remembering. It was not that long ago that Hitler’s Germany and Stalin’s Russia (andthe forced starvation of Ukraine) reduced their citizens to pawns bystripping away their basic rights. Ifone knows even the basics of what happened to the Jews, as well asthose caught helping to save Jews,they know that all those sent to thegas chambers were stripped, literally,of their dignity.

Why, then, are we not demandingthat those in charge of intelligencedo their job? In other words, do yourjob and target those who are truly attempting to do wrong. Profile!

And I do not mean racial or ethnic profiling. I am referring to

what true investigators do — estab-lish a criminal profile based on theevidence and intelligence they obtain.

Why does every man, woman andchild (of every age and physical ability)have to go through a demeaningbody scan or pat down? As you havesurely already read or heard, TSAofficials have admitted these “safety”procedures cannot possibly catchevery possible hidden weapon. And towhere does that next lead us?

This is not about safety. It isabout control and trying to coverup the ineptitude of those whoshould have the intelligence, yet failto act on it. Just as punishing theentire class for the disruptive behavior of one student does nottruly deter the errant child, punishingan entire nation does not do anything to stop a terrorist.

As one local newspaper colum-nist noted, we are turning into a nation of sheep. And we, like sheep,are quickly going astray.

Kathleen EganCuyahoga Falls

Transparency is key ■Have we learned nothing from overtwo years of corruption proceedingsin Cuyahoga County government?A private meeting to select the newpresident of county council was

outrageously ill-conceived.Our new county council members

must shed their old partisan ways.They are not working for their districts.They are not working for them-selves and their political futures.They are working for us, the citizensof Cuyahoga County. They should askthemselves: Is each decision in thebest interests of the county as a whole?

We want a less costly and moreefficient government for the entirecounty. Hiring practices in particu-lar should be oriented toward getting the best talent at the rightprice. Open postings and a profes-sional human resources depart-ment are essential.

Efficiencies from technology aresadly lacking in the auditor’s officeand probably other areas as well.Real improvements can be madethat will reduce the cost of govern-ment and ultimately provide betterservice to the citizens.

We expect and demand a morethoughtful and open process inevery area. Frankly, selflessness iswhat we seek, and it’s a commoditythat is very hard to find.

Our only chance is in front of us.Please, council members, give usnew and better government, notthe same old stuff.

Jeff ShermanHighland Heights

2,800 this year and typically makeup 18% to 24% of registrants. In-staterunners from outside Northeast Ohiototaled around 3,000 in 2010 andusually account for about 20% ofregistrants. These out-of-towners are valued because they’re mostlikely to stay in a hotel, buy dinnerat a Cleveland restaurant or take ina post-race show at Playhouse-Square.

The Cleveland event’s economicimpact has risen accordingly, saidHighland PR vice president LeighGreenfelder, whose firm works withthe Cleveland marathon. Ms.Greenfelder said Forward Analytics,a Pittsburgh-based market researchoutfit, in 2007 estimated the event’simpact at $11.8 million, when 9,000runners participated. In 2004, withabout 6,000 runners, the impactwas estimated at $6.8 million.

Cleveland race officials figure the2010 event’s impact at $15 million,though that may be conservative,Ms. Greenfelder said. From 2004 to2007, participation jumped 50%and impact 74%; from 2007 to 2010,participation jumped 72%, but theimpact growth estimate only regis-ters a 27% increase.

“We didn’t want to overstatewithout a full study,” Ms. Green-felder said.

And while convention and visitorsbureau Positively Cleveland hasn’tresearched the marathon’s effectdowntown, vice president of mar-keting Tamera Brown said hotelsand other businesses benefit greatly.

“Even locals opt to stay down-town for an earlier start and patronizelocal businesses,” she said.

Good vibrationsThe Road Runner Akron Mara-

thon, too, has seen a rise in partici-pation; an economic impact studyconducted by University of Akroneconomics professor Shawn Rohlinand a group of five students and obtained by Crain’s shows 11,051runners took part in the Septemberevent. That was up 4.6% from 10,566last year and up 21% from 9,100 in2008. (Race officials, in declining torelease the report, cautioned thedata still were preliminary.)

Of those 11,051, 5,085 were non-local — outside Portage and Summit counties — and that groupcontributed $1.99 million in totalspending impact. The event as awhole had an impact of $4 million.

“It lifts the community, not onlyeconomically but also its spirit,”said Gregg Mervis, vice presidentof the Akron/Summit County Con-vention and Visitors Bureau and anAkron marathon finisher. It gives us an overall good feeling, and impacts our residents’ health.”

The local jump in running partic-ipation mirrors a nationwide trend,perhaps attributable to a growingfocus on healthy lifestyles and wellness. According to an analysis conducted by Race Results Weekly,

a distance running wire service,participation in 200 establishedroad races in 2009 rose a collective11% over 2008, with 168 of thoseraces reporting increases.

The Rock ‘n’ Roll Las Vegas Half Marathon recorded the biggestjump in the group studied, at 132%, or 10,199 runners, while par-ticipation in the Los Angeles Mara-thon dropped by 18%, or 3,119 runners.

In many places, including Cleve-land, the rise in participation hasled to the placement of caps on thenumber of participants in individualraces in order to give runners roomto maneuver.

At the 2010 Rite Aid race, the half-marathon and 10K races werecapped at 6,000 and the marathon at3,000; officials are pondering howto cap the races with the previouslymentioned higher registration esti-mate. Much will depend on finalcourse approval; there currently aretwo proposals.

“It’s hard to fit 9,000 people inTremont all at the same time at thebeginning of the race, due to roadsize and parked cars,” Ms. Green-felder cited as an example. ■

Marathons: Participation up nationallycontinued from PAGE 3

PHOTO COURTESY OF THE RITE AID CLEVELAND MARATHON

Runners line up at the start of May’s Rite Aid Cleveland Marathon.



®

www.firstplacebank.com

Andrew Hopper has joined First Place Bank as Vice President and Commercial Relationship Manager, Commercial Banking.

Hopper has 13 years of experience in providing business banking services to his clients, having held managerial positions at other Northeast Ohio financial institutions.

“Andy is a great addition to our commercial banking team,” said Kenton Thompson, North Coast Regional President. “With his strong commitment to his clients, well-rounded financial services expertise, and involved experience with the Cleveland area business community, he’s a perfect fit with our brand of business community banking.”

Hopper is a graduate of The Ohio State University and is a member of Rotary International. He can be reached at 216-288-1174.

Andrew Hopper Joins First Place Bank Commercial Banking Team

Andrew Hopper

600 Superior Avenue, East, Suite 2100, Cleveland, OH 44114216.348.5400

Carl J. Grassi Shawn M. RileyPresident Cleveland Managing Member

A business advisory and advocacy law firm®

Attorneys on a Mission®

Your mission is our mission. We never lose sight of it.

Chicago • Cleveland • Columbus • Detroit • West Palm Beach

www.mcdonaldhopkins.com

Mission Outstanding!

Would you describe your law firm as outstanding?It could happen.

The attorneys at McDonald Hopkins areon a mission to provide

outstanding legal services to every client.

GOING PLACESJOB CHANGES

EDUCATIONURSULINE COLLEGE: Matthew McCaffrey to director of undergraduateadmission; Melissa Waclawik to director of graduate admission.

FINANCECFBANK: Kemper C. Allison to vicepresident, commerical banking; KeithD. Anderson to credit officer. FIRSTMERIT CORP.: Julie ClemoTutkovics to senior vice president,chief marketing officer; Jason Gendicsto director of retail banking, Ohio. HUNTINGTON BANK: Diane M.Downing to senior vice president, regional manager of corporate affairs. OHIO COMMERCIAL BANK: GreggPaliokas to senior credit analyst.

FINANCIAL SERVICELINSALATA CAPITAL PARTNERS:James V. Guddy to vice president. PRICEWATERHOUSECOOPERS:Erik Rosenfeld to partner. SKODA MINOTTI: Ted R. Ginsburgto principal, compensation and benefitsadvisory services group. SS&G: Kelly Pulling to associate.SS&G HEALTHCARE SERVICESLLC: Jonathan Steiner to financialanalyst.

HEALTH CAREHEALTH DESIGN PLUS: KathleenDaberko to account manager. UNIVERSITY HOSPITALS RAINBOWBABIES & CHILDREN’S HOSPITAL:

Dr. Elia Pestana Knight to Divisionof Pediatric Epilepsy.

INSURANCEBRITTON-GALLAGHER: Tim Krennto employee benefits producer.

LEGALGALLAGHER SHARP: Shane A.Lawson to associate. REMINGER CO. LPA: Bethanie E.Ricketts, Rafael P. McLaughlin andNick R. Catanzarite to partners; Anthony M. Catanzarite to co-chair,Construction Design and Liability Practice Group.

MANUFACTURINGSWAGELOK CO.: Edward Bayer todirector, sustainability.

NONPROFITCLEVELAND INSTITUTE OF MUSIC: Lorraine Schuchart to director of marketing and communica-tions. TEAM NORTHEAST OHIO: ChristineNelson to vice president, business attraction; Jacob Duritsky to director, business attraction.

SERVICECASNET: Terry Fischer to president, chief operating officer. CLEVELAND METROPARKS ZOO:Dr. Mike Selig to veterinarian, TheSarah Allison Steffee Center for Zoological Medicine.

BOARDSKENT STATE UNIVERSITY FOUNDATION: Linda Neiheiser tosecretary. MAYFIELD AREA CHAMBER OFCOMMERCE: John D. Swartzto president; Donna Leseman to vice president; Bruce Bechhold totreasurer; Mary Jo Vleck to secretary.

AWARDSTHE AMERICAN ACADEMY OFNURSING: Carol Sedlak (Kent StateUniversity) was named an academy fellow.OHIO STATE BAR FOUNDATION:David C. Weiner (Squire, Sanders &Dempsey LLP) received the 2010 Honorary Life Fellowship Award.

Send information for Going Places [email protected].

DaberkoRosenfeldDowning

Register for free e-mail alertsand receive:

■ The Morning Roundup: Acollection of the day’s businessnews from Ohio’s daily papers

■ Breaking news alerts: Whenmajor news happens, you’ll know

■ Daily headlines: A collectionof Crain’s-produced news andblog items from the day

■ e!Cleveland: A weekly guideto arts and leisure in NortheastOhio

GET DAILY NEWS ALERTSFROM CRAIN’S!

TAX LIENSThe Internal Revenue Service filed taxliens against the following businessesin the Cuyahoga County Recorder’s Office, to protect the interests of thefederal government. The lien is a noticeto creditors that the government has aclaim against a company’s property.Dates listed are the dates the documentswere filed in the Recorder’s Office.

LIENS FILEDDouble Moose Management Co.,Moosehead Hook & Ladder No. 37989 Columbia Road, Olmsted FallsID: 26-2147968Date filed: Oct. 19, 2010Type: Employer’s withholdingAmount: $41,865

First Choice Homecare Inc.601 Towpath Trail, Suite C, Broadview HeightsID: 34-1876809Date filed: Oct. 19, 2010Type: Employer’s withholdingAmount: $31,586

Watsons Funeral Home Inc.10913 Superior Ave., ClevelandID: 34-0755005Date filed: Oct. 15, 2010Type: Employer’s withholdingAmount: $29,837

Johnny & Co. Bar and Grille LLC18029 Euclid Ave., ClevelandID: 20-4383154

Date filed: Oct. 29, 2010Type: Employer’s withholdingAmount: $29,810

Beta Strategy Group Ltd.33 River St., Chagrin FallsID: 20-4359850Date filed: Oct. 29, 2010Type: Employer’s withholdingAmount: $26,855

Ran-Dan Transport Inc.2506 Grovewood Ave., ParmaID: 92-0184993Date filed: Oct. 29, 2010Type: Employer’s withholdingAmount: $23,116

Charles P. Braman & Co.23300 Chagrin Blvd., Suite 102,BeachwoodID: 34-0877051Date filed: Oct. 19, 2010Type: Employer’s withholding, corporate incomeAmount: $22,083

Diamond Billiards & Spas Inc.8003 Brookpark Road, ParmaID: 38-3661275Date filed: Oct. 13, 2010Type: Employer’s withholdingAmount: $21,653

CSF Enterprises29 S. Main St., Chagrin FallsID: 59-3824639Date filed: Oct. 7, 2010

Type: Employer’s withholdingAmount: $21,604

Power Alarm Inc.25086 Lakeland Blvd., EuclidID: 34-1344538Date filed: Oct. 13, 2010Type: Employer’s withholdingAmount: $21,223

Mutt Hutt Ltd.2603 Scranton Road, ClevelandID: 71-0983025Date filed: Oct. 19, 2010Type: Employer’s withholding, employer’s annual federal tax return Amount: $19,725

Stec Construction LLC6507 Luelda Ave., ParmaID: 57-1175189Date filed: Oct. 19, 2010Type: Employer’s withholding, unemployment, civil penalty assessmentAmount: $19,303

Arco Comfort Air LLC22053 Aurora Road, Bedford HeightsID: 14-1867200Date filed: Oct. 19, 2010Type: Employer’s withholding, unemploymentAmount: $17,211

Ohio Sauce Corp., Hot Sauce Williams12310 Superior Ave., ClevelandID: 34-1286996Date filed: Oct. 5, 2010Type: Employer’s withholdingAmount: $16,786

Kid Nation Inc.1413-1419 Hayden Ave., East ClevelandID: 74-3237201Date filed: Oct. 29, 2010Type: Employer’s withholding, unemploymentAmount: $16,590


By AMY ANN STOESSEL [email protected]

Dave Rzepka not only feelsstrongly about giving back tothe community, he wantspeople to have a choice

when it comes to where their money isdonated.

That’s why when he started Beecologyabout two years ago to sell handcraftednatural skin care and hair products, heand his wife, Amy, not onlycommitted to donate 10% oftheir net profits to charity,they created a charity website, www.sweetyear.org.

Each of the products soldby the Bedford Heightscompany online and at boutiques andfarmers’ markets carries a unique codeon its packaging, which then can be input by a customer at the Sweet Yearweb site.

Customers can choose from a list oforganizations online — which includessuch groups as the American DiabetesAssociation, Autism Speaks and SusanG. Komen for the Cure — to help determine where donations from

2010 2.7%

SMALL BUSINESSI N S I D E

DECEMBER 13 - 19, 2010 CRAIN’S CLEVELAND BUSINESS 13

17 TAX TIPS: NOWMAY BE THE TIMETO LOOK ATS CORP STATUS.

GIVING BACKNOW PART

OF THE PLAN

Number of raises grows, but still below pre-recessionThose lacking resources to increase salaries look for other ways to reward employee performanceBy TIMOTHY [email protected]

If an employee of ChuckGlover’s performs well and exceeds expectations, thatperson will get a raise. It’s that

simple.Last year, a select number were

lucky enough to get a pay bump,but this year most — if not all — ofhis about 20 employees will get a3% to 5% pay hike.

“If they do the work that isabove expectation, they get araise,” said Mr. Glover, the presi-dent of LMI Family Group, a Mentor-based management andconstruction company. “Theyknow that because they do whatthey’re supposed to do. That’show it’s always been.”

The number of small businessesin the region giving their employeesraises appears to be on the rise,though it’s still far below what it

was before the recession. For instance, of area businesses

with fewer than 50 employees,about 73% plan to give raises thisyear, according to a recent surveyby the Employers Resource Council, a nonprofit human resources organization based inMayfield Village.

That’s up from 53% of smallbusinesses that planned to giveraises last year, but still far belowpre-recession levels in 2007 when

about 93% planned to give pay increases.

The raises, of course, won’t beanything Google-like in nature —the search engine giant recentlygave each of its 20,000 employeesa $1,000 holiday bonus and awhopping 10% raise. Pay hikes atsmall businesses in NortheastOhio are expected to be around2.8%, about on par with the national average.

See RAISES Page 15

2011 WAGE PLANSNortheast Ohio companies respondingto a survey by Employers ResourceCouncil are projecting an averagesalary increase of 2.8% for 2011. Howthat compares to previous years:

Year Wage adjustment

2009 3.1

2008 3.4

2007 3.5

2006 3.4

2005 3.4

2004 3.6

JANET CENTURY

Bedford Heights-based Beecology, run by Amy and Dave Rzepka, has committed to donate 10% of its net prof-its. Its charity web site allows customers to direct donations to certain organizations.

Entrepreneurs make philanthropy a focus, find donations make

companies more successful long-term

See GIVING Page 16



NORTHEAST OHIO REGIONAL SEWER DISTRICT

SMALL BUSINESSENTERPRISE PROGRAM

Here’s the sign you’re looking for.

We’re expanding our small-business opportunities to provide economic benefits for the region and help local companies grow!

If your company is a small construction or engineering company or a provider of goods or professional services, we invite you to apply for our SBE program.

APPLY & LEARN MORE at neorsd.org/sbe

SMALL BUSINESS

JUST DOGS! GOURMET 30323 Detroit RoadCrocker Park PromenadeWestlake 44145www.justdogsgourmet.com Just Dogs! Gourmet, a nationally franchised company, is a bakery forcanines that offers an assortment offresh-baked, hand-cut, all-natural dogsnacks. Locally owned by Lori Aldrich,Just Dogs! Gourmet makes its snacksfresh daily, and they are available in avariety of shapes, sizes and flavors. In addition to edibles, Just Dogs!Gourmet offers an array of acces-sories, such as supplements andshampoos.440-808-9663

CLOSED LOOP LLC 16201 Parkland DriveCleveland 44120 www.closedloop-cle.comClosed Loop LLC is a five-person team of professionals from varyingbackgrounds that work with companiesto identify and implement sustainablebusiness strategies. The group’s aimis to take the concept of sustainabilityand make it part of the business or [email protected]

BLACKROCK PARTNERS 635 W. Lakeside Ave. No. 202Cleveland 44113www.blackrocklp.comA boutique real estate firm, BlackRockPartners specializes in the brokerage,marketing and development of downtown residential and commercialreal estate. Co-founders Jon Mavrakisand Nick Petrakis are joined by partner Nicholas A. Zarnas, formerchairman of Grubb and Ellis Co. Investment Services Group, who hasfocused the last decade on the reuseof existing downtown Cleveland build-ings to create high-end, customized,multi-story residential properties.Messrs. Mavrakis and Petrakis alsohave been integrally involved in high-profile downtown Cleveland residentialreal estate projects. They helped facilitate marketing, sales, constructionand financing for the 14-story PinnacleProject. They also helped lead theconversion of the work-live buildingknown as the Cloak Factory into 26condominiums and offices.

Phone 216-245-3343 Fax 216-861-2969

To submit a new business, send thefollowing information by e-mail toAmy Ann Stoessel at [email protected]: business name; address;city and ZIP; web site; brief description of business; businessphone number; business fax number; business e-mail address;and date that business opened. Call216-771-5155 with questions.

GRANDOPENINGS

Demand for retro hand carving set in stoneArea fabricatorscontinue to serve specialized marketBy KATHY AMES [email protected]

Chris Pascoe watched a Harry Potter movie recentlyand was transfixed bysomething other than the

action.As he watched Harry and his

friends running atop cloisters at theGloucester Cathedral in England,he muttered to himself, “Man, thatlooks familiar.”

The jolt of realization hit.Mr. Pascoe worked on restoring

that 900-year-old cathedral early inhis stone-carving career, when hewas 15 and didn’t know what hewas going to do with his life.

“But when I picked up a malletand chisel, I had one of those moments. I knew I was going tomake a career out of this,” he said.

And 30 some years later, Mr. Pascoe — along with a few otherNortheast Ohio artists — still arepracticing the old-world craft ofcarving natural stone by hand, eschewing big machines for sweatand chisel to produce customizedwork.

“The key is for the structure tolook like it has been there for 100

years, rather than created lastmonth,” said the formally trainedMr. Pascoe.

Stepping stonesYears of education and manpower

preceded the opening about a yearand a half ago of Mr. Pascoe’s business, Garfield Heights-basedTri-R-Stone.

Mr. Pascoe went to Bath TechnicalCollege in England and earnedthrough the City & Guilds of LondonInstitute a five-year apprenticeship

Chris Pascoe,the owner of Tri-R-Stone inGarfield Heights,in early Decem-ber shipped this35-foot-by-22-foot stone frontfor an out-of-state residentialclient.JASON MILLER

in stone carving, which is theequivalent of a journeyman’s certificate.

“We learned the whole aspect ofthe construction industry, fromstone carving to construction to architecture and civil engineering,”he said. “A lot of fabricators andmasons here are self-taught becausethe skills have been lost. It’s sad.”

Fellow stone carver Nick Fairplayin 1991 lured Mr. Pascoe to theUnited States, where they workedon a five-year restoration of theCathedral of St. John the Divine inNew York with a team of 21 stonecarvers and cutters from throughoutthe world.

Family ties and access to naturalstone brought him in 1996 to North-east Ohio, and since then he hasdeveloped the stone-carving divi-sions for various businesses suchas Vermilion-based ClevelandQuarries.

He went out on his own, withthe help of two private investors, toset up in April 2009 his own shopwhile working on a 35-foot-by-22-foot stone front for an out-of-stateresidential client, a project thattook him nine months to complete.

The project required 900 cubicfeet of cut stone and costs were inthe six-figure range, though Mr.Pascoe declined to elaborate sincehis client prefers to remain privateabout his expenditures.

In fact, clients such as Mr. Pascoe’stend to be discriminating aboutstructural and landscape work,opting for the unique skills thatstone carvers bring to the table.

Doug Brown, co-owner and design salesman for Chagrin Falls-based Naturescape Inc., said hisbusiness is predicated on perfectionbecause the landscape and designfirm’s clients prefer high-end, unusual landscape products.

“Chris does a lot of blue stoneoutdoor kitchens for me,” he said.“If I need a unique piece, Chris willdo it.”

Mr. Brown said masons like Mr.Pascoe are valuable because stonecan’t be completely carved withmachines; only the hand and chiselcan precisely carve out groovesand designs, if done the properway.

Carving out a nicheNorbert Koehn of South Euclid-

based Koehn Sculptors also is a

stone carving master, and he saidthe construction market about 20years ago shifted from using woodto more granite, quarry and othertypes of natural stone.

“We get about 50% of our commissions from stone,” he said.

Mr. Koehn, for example, is working on carving by hand special script, one-foot stone lettering for the University Hospi-tals Case Medical Center’s cancercenter at University Circle.

Bob O’Brien, of WarrensvilleHeights-based O’Brien Cut Stone,said his fourth-generation familybusiness does minimal stone carving jobs — mostly finishingwork by hand — because there’snot a large demand for “true stonecarving work.”

“It can be cost prohibitive,” hesaid.

Meanwhile, Mr. Pascoe workedthis past summer with Baldwin-Wallace College to renovate thefront of Strosacker Hall, the college’sunion, with sandstone.

He also is teaming up with Mr.Fairplay, who now is an architec-tural sculptor at Oberlin-basedFairplay Stonecarvers LLC, to produce a line of hand-carvedstone fireplaces that meld modernAmerican design with traditionalarchitectural detailing.

The cost of a project like thisvaries greatly, according to materialsinvolved and client preferences,but Mr. Pascoe said a hand-carvednatural stone fireplace can costanywhere $2,000 to $40,000. Typi-cally, a slab costs $36 per cubicfoot to $50 per cubic foot.

Mr. Pascoe in March collaboratedwith the Ohio Landscape Associa-tion to teach about 40 area land-scape artists and other contractorsthe proper techniques in stonecarving during two sold-out clinics.

“Chris is excited about sharinghis old-world craft,” said SandyMunley, executive director of theOhio Landscape Association. “He’sbrilliant in what he’s doing andwants to be sure the craft doesn’tdie. And he wants people to learnhow to do it the right way.”

Mr. Pascoe is planning to continue conducting the seminarsthis spring; ultimately, he hopes toformally parlay those skills towould-be apprentices.

“My hope is to teach young ladshere one day,” Mr. Pascoe said. ■


Mr. Glover said the pay increasesare about making sure he can provide his employees the resourcesto live comfortably. In his estimation,the cost of living is increasing, contrary to what some analystsmight suggest.

“You don’t see that going to thegrocery store,” Mr. Glover said.“You don’t see that going to meatstore or local places you’re buyingthings. The costs are still going up.Employees still have to pay more tolive.”

Paul Roetzer, president of PR20/20, said he expects that the nineemployees in his Cleveland-basedpublic relations and marketingagency will receive somewhere between a 5% and 10% pay increase.Because PR 20/20 has experiencedsignificant growth over the last fiveyears, Mr. Roetzer said the firm hasbeen able to continue giving raises.

“Our largest investment is in ourtalent, so our base compensationpackages are designed to be at orabove average in our industry,” Mr.Roetzer said.

Meanwhile, Lori Long, associateprofessor of human resources atBaldwin-Wallace College, notedthat if employers are looking to givepay increases based on perfor-mance, they need to ensure there is a significant enough pay bump between the highest and lowestperformers.

For instance, if high performersearned a 3% pay increase while lowperformers earned a 2% bump,there isn’t much of an incentive toperform well, she noted.

Dr. Long said that small businessestend not to have the resources tocreate a strong performance management system, but she said itis important to have a point person — whether that’s a humanresources professional or perhaps alead office manager — to overseepay increases and performance reviews.

“Smaller businesses need to bemore cautious and have a centralperson responsible for thatprocess,” she said.

If the cash isn’t thereSusan Chermonte, a human

resources specialist at the EmployersResource Council, said she’s fieldedcalls from area businesses thatdon’t have the resources to offerpay boosts but are looking for waysto reward their employees.

She said a lot of employees don’tfeel appreciated, so even sendingthem a handwritten note thankingthem for their hard work and apol-ogizing for not being able to offer apay increase or bonus could payoff.

Other suggestions, Ms. Chermontenoted, include offering more vacation time, celebrating anniver-saries and birthdays or providingsome sort of treat such as bagels or


SMALL BUSINESS

Raises: Morale can suffer in long slumpcontinued from PAGE 13 ice cream every Friday.

“People want to know their workand their time is appreciated,” Ms.Chermonte said.

Still, Dr. Long said many busi-nesses are still choosing to foregopay increases simply because thejob market is so tight. It’s a short-sighted view, Dr. Long said, butemployees disheartened by a lack

of a pay bump aren’t likely to leavethe company because the economyis still recovering.

“How a company treats its employees during tough times hasa lasting impact,” Dr. Long said.“Employees know if a company isdoing well. ... If they don’t giveraises, it could have a detrimentaleffect on employee morale.” ■

WAGE ADJUSTMENT BY SECTORHow Employers Resource Council survey respondents said they’d adjust employeesalaries, broken down by industry:

Sector 2011 adjustment 2010 adjustmentNon-union production, service 2.7% 2.6%

Union production, service 2.7 2.7

Clerical/technical 2.8 2.6

Supervisory/professional 2.8 2.7

Executives 2.9 3.0

“How a company treats itsemployees during toughtimes has a lastingimpact.”

– Lori Longassociate professor of human

resources, Baldwin-Wallace College


Beecology should be made.Mr. Rzepka is far from alone in

his philanthropic efforts amongthe small business community.According to a study released lastmonth by Ernst & Young and theFidelity Charitable Gift Fund, 89%of entrepreneurs donate money,both personally and through theircompanies.

In fact, 62% feel that giving backmakes their companies more successful in the long run, and26% even incorporate philanthropyinto their companies’ businessplans.

One such entrepreneur is DebMills-Scofield, who has made philanthropy a central part of theway she conducts business.

So much so, it’s the policy of herOberlin-based consulting practice,Mills-Scofield LLC, that any clientof the firm must match and donate10% of Ms. Mills-Scofield’s consultancy fee. Clients can giveto the cause of their choice, andsome donate more than is asked.

Mills-Scofield client giving thisyear has amounted to $12,000,plus in-kind donations. Over thepast nine years, cash and in-kinddonations have totaled $250,000.

“I’m willing to help you grow …as long as you’re willing to helpsomeone along the way,” said Ms.Mills-Scofield, who also donates 10%of her personal income to charity.

A win-winBeth Darmstadter, director of

development for The GatheringPlace, a cancer wellness and support center with locations inWestlake and Beachwood, saidthere are many benefits derivedfrom partnerships between smallbusinesses and nonprofits.

“People want to give back tocompanies that are not just

making money off them,” she said.“It’s really a win-win model.”

During The Gathering Place’slast fiscal year, which ended June30, 6.7% of the organization’s donated revenue came from external fundraisers, which includesmall businesses. That numberwas more than double what hadbeen anticipated, and the hope isthat it will exceed those levels during the current fiscal year.

Of course, the benefits are notjust monetary.

“The more we have relationshipswith community businesses, themore they help spread the word”

continued from PAGE 13


A SECOND OPINION SAVED US

*

TIMES ARE TOUGH, BUT WE’RE STILL GOING, and a Citizens Bank Second Opinion helped us get there. After examining every aspect of our business, a Citizens Banker found ways we could save more money, be more efficient – for our business and personal accounts.

Make time to meet with a Citizens Banker. To schedule your Citizens Bank Second Opinion, CALL 800-946-2264 or go online to CITIZENSBANKING.COM/OPINION.

* Results may vary depending on your business situation.

SMALL BUSINESS

Giving: Partnerships help spread word about nonprofits’ causesabout The Gathering Place, said Ms.Darmstadter.

One of the small businesses lending support to The GatheringPlace is VanityLab Salon Spa Shopin Westlake, which recently added anonsite local artisan jewelry collectionunder the name Sparkle Jewelry.

Sparkle features the work of morethan 50 local artists, and a portionof the proceeds, along with a matchfrom Sparkle, support an area non-profit. Contributions currently arebenefiting The Gathering Place.

VanityLab owner Angie Hofelichsaid sometimes it can be a challengeto juggle the many requests for do-nations. “They all think you justhave extra money to give,” she said.

While she might respond to suchrequests with in-kind donationssuch as makeover passes, Ms. Hofelich tends to focus her effortson specific local organizations likeThe Gathering Place or the North-east Ohio Society for the Preventionof Cruelty to Animals, to which VanityLab already has donated$5,000 to $6,000.

“Find something that you believein and have an organized approach,”she said. “Give what you can give.”

Every little bit countsFor entrepreneurs like Valerie

Mayen — best known by some forher appearance on Season 8 of“Project Runway” — it’s no doubt achallenge to nurture a young business while staying committedto philanthropy.

But “doing well by doing good” is amantra that Ms. Mayen takes toheart. The designer — who currentlylives and works in a 2,000-square-foot loft space in Cleveland — hasmade the commitment to donate 5%of the profits from Yellowcake, herfashion line.

She likes to base her donationson need, going to causes such asthe City Mission and those thatfight hunger and homelessness.

“The need is now … the growthof my business isn’t as pressing,”she said. “I’m still able to pay mybills; I’m still able to eat; I’m stillable to enjoy my life.”

Ms. Mayen gives anywhere from$120 to $300 a month when salesare consistent. Certainly, she saidshe would like to eventually be ablegive more as her business grows.

Gina and Ed Trebets of Chester-land — who recently launched theirown wine label, Muddy Paw — alsoincluded a plan to give back whendeveloping the concept for theirproduct, inspired by their 8-year-oldrescue dog and 1-year-old yellow Lab.

A portion of the wines’ proceeds— currently at least $1 from eachbottle — benefit the Geauga CountyHumane Society Rescue Village, anorganization that Ms. Trebets saiddoes not euthanize and that accepts all types of animals.

There’s a business benefit, too,the Trebets admit. People who loveanimals are drawn to the label andthe cause.

“It’s rewarding to be able to seeyour profits and hard work go togood,” Ms. Trebets said.

Ms. Darmstadter of The GatheringPlace couldn’t agree more on thepositive effect that small businessescan have.

“No matter how small you are, itall comes together to do big things,”she said. ■



Inspiring minds, transforming lives, AND a great value

Employers hire our students: Within 6 months of graduation, 97% of our students are either working full-time, in graduate school, or fulfilling a commitment to a year of service.Leaders come from John Carroll: 500 Ohio companies are owned or operated by our alumni.Recognized value: Student success and generous financial aid earn JCU a top regional spot in the U.S. News and World Report “Best Colleges, Best Values” comparison.

The John Carroll experience is more than the quickest path to a degree or getting that first job. We inspire and prepare our students to engage the world as creative, innovative, and ethical leaders in the workplace and throughout their lives.

www.jcu.edu/success

SMALL BUSINESS

If dividends are on tap, consider switch to S corpDistribution taxes higher in other structure CARLGRASSI

TAX TIPS

distributions are made from the Ccorporation since distributions willgenerate a second level of tax to bepaid by the shareholders.

This is bad enough under currentlaw that sets dividend rates at 15%,but the scheduled tax increaseswould make dividends taxable atordinary income rates — scheduledto increase to a maximum 39.6%rate.

Regardless of whether theseworst-case scenario tax rates become reality, businesses that distribute cash to their shareholdersshould seriously consider the alternatives to being structured as Ccorporations. This is especially truein the case of a corporation in theyear it sells all of its assets.

Business owners often are reluc-tant to make an S election if a saleof the business is possible in thenear future because it is “too late”to avoid the built-in gains (“BIG”)tax.

S corporations pay a corporatelevel of tax if assets are sold during

a period of time, generally 10 years,following the S election if such assets (including goodwill) were appreciated at the time of the Selection. The amount of gain subject to the BIG tax is limited tothe gain built into the assets at thetime of the S election.

For example, assume that in 2004a C corporation purchased propertyfor $1 million that appreciated to avalue of $3 million in 2005. An Selection is made in 2005, and overthe next five years, the property appreciates to $10 million.

When the property is sold in2010, the BIG tax only is applicableto the $2 million in appreciationfrom 2004 to 2005. The balance of

the appreciation, $7 million, istaxed only once, even if the proceedsfrom the sale are distributed to theshareholders.

Most taxpayers and advisers assume that a significant period oftime must pass between the S election and a subsequent sale tohave appreciation taxed only onceas in the above example.

A recent tax court case held thata significant amount of apprecia-tion can occur after an S election ismade, even if the election is madein the same year as the sale.

In this case, the corporation’s accountant appraised the value ofthe corporation at $2.6 million atabout the same time an S electionwas made on Jan. 1, 2000.

In November of that same year,the company sold for $5.2 million.The taxpayer asserted that the value of the company at the timeof the S election (and therefore theamount of built-in gain) was $2.6million.

The IRS challenged this valuation,asserting that the value at the timeof the S election was $5.2 million,which was the recent purchase price.

Many observers might assumethat the IRS challenge might besuccessful. After all, the best valuation of any business is theamount a third party would pay.

The tax court found that whilethe sale price in November wasprobative of the value, it did not automatically set the value as ofJan. 1, and determined that the correct value was $3.7 million.

The company therefore savedtaxes on $1.5 million of gain eventhough the S election was made inthe year of the sale. One lesson ofthis case is to document value atthe time of the S election with a reliable independent appraisal.

Of course, there are very specificrequirements that must be satis-fied for a business to qualify tomake an S election, but manyclosely held businesses will satisfythese requirements. This is a goodtime to review those requirementsand consider or reconsider the S election. ■

Mr. Grassi is a member and president of McDonald HopkinsLLC.

With the beginning of anew year around thecorner, business ownerswho operate their

businesses as C corporations willbegin thinking about whether 2011is the year to make an election tohave the business taxed as an S corporation.

This decision has special impor-tance for 2011, with the specter ofcorporate dividends being taxed atalmost 40% for higher income taxpayers.

S corporation distributions generally are not taxed — a signifi-cant tax savings for businesses thatmake cash distributions.

C corporations can be tax efficientin years that dividends are not paid.In fact, tax rates for C corporationsmay be less than the rates for S corporations because S corporationincome is taxed to the individualshareholders, and individual taxrates are more likely to rise nextyear.

This possible efficiency is lost if

■■ KIDS STUFF: Hazel Tree Interiorsin Akron, owned by Karen Starr andher husband Jon Haidet, has added anew line, called Hazel Tree Kids,which will feature children’s furnitureand toys made or redesigned by localartisans. Several of the artists alreadyseen in Hazel Tree now have put theirspin on pieces for use in children’srooms, such as nightstands, rockingchairs and bookshelves.

■■ A GEM: Howard’s Jewelry Centerlast month opened its fourth locationin the Great Lakes Mall in Mentor. Inbusiness for almost three decades,Howard’s, founded by Howard Hurwitz, also has locations in MapleHeights, Mayfield Heights and ParmaHeights. In addition to offering newjewelry and like-new jewelry for sale,Howard’s also accepts jewelry fortrade-in or as collateral.

■■ NEW LOCATION: Season’s Prac-tice, a health and wellness practicefor women, has opened a second location at 30638 Center Ridge Roadin Westlake. At the new Westlake location, Season’s Practice will offercosmetic services including Botox non-surgical treatment; dermal fillers; per-manent makeup; laser skin rejuvena-tion; and other services. Season’sPractice’s other location is in Middle-burg Heights, where it offers psycho-logical/emotional services.

■■ DO YOU COPY?: A new CanonBusiness Solutions office has openedin Independence. The Cleveland-area office, which will serve as a sales andservice hub, is part of Canon BusinessSolutions’ larger growth strategy; it isone of 15 offices that opened in metro-politan areas this past year. CanonBusiness Solutions currently servesnine counties with plans to expand in2011 throughout Ohio and surroundingareas. The new office will employ 11with plans to double that figure in 2011.

■■ WORKING OUT: Brothers-in-lawBrad Newcomb, Jonathan Slain andMichael Hall opened their fifth Fitness

Together franchise last month in GatesMills at 1540 Chagrin River Road. Fit-ness Together is a fitness studio dedi-cated to one-on-one personal training.The group previously opened FitnessTogether franchises in Chagrin Falls,Solon, Hudson and Rocky River.

■■ ADDING TO THEIR RANKS: Redi-Go Food Marts in Lake County hasadded a ninth store to its brand. Thenew store was formerly Poppa C Sunoco, and it is owned by Andrewand Carolyn Cianfaglione. The RediGo brand was formed in 2007 soits store owners could share an advertising program and leverage other benefits from working as a group.

■■ SET IN STONE: S.B. Stone andCo., a consulting firm that is morethan 30 years old, has changed itsname to Stone Crossing Solutionsand has moved offices within Indepen-dence to accommodate staff growth.The company has 40 employees andworks with 45 independent contractors.President John Vojtush said the company will be adding 25 more employees in the next three to sixmonths and more independent con-tractors. The company is a strategicbusiness solutions provider focusingon the areas of custom application development; agile and lean softwaredevelopment; staff augmentation; network infrastructure; hardware/soft-ware installation and implementation;and business strategy consulting.

■■ IDEA EXCHANGE: The Entrepre-neur’s Idea Exchange is still goingstrong since its founding in March, according to organizer CorrineBeller. The program is for any personwith a business idea, at any level ofdevelopment. A featured speaker hasbeen added to the format, which alsoincludes informal discussions facilitat-ed by seasoned entrepreneurs andprofessionals in a small-group setting.Meetings, which are the third Thursdayof odd-numbered months, are held atthe University of Akron’s College ofBusiness Administration.

S H O R T T A K E S



BANKS IN NORTHEAST OHIORANKED BY DEPOSITS(1)

Northeast Ohiodeposits (millions)

Rank

NameAddressPhone/Web site 6-30-2010 6-30-2009 % change Offices

Employees(companywide)

6-30-2010 Holding company Top local executive

1KeyBank NA127 Public Square, Cleveland 44114(216) 689-3000/www.keybank.com

$13,395.3 $14,896.6 -10.1% 120 15,517 KeyCorpCleveland

Henry L. Meyer IIIchairman, CEOKeyCorp

2PNC Bank1900 E. Ninth St., Cleveland 44114(216) 222-2000/www.pnc.com

$8,767.3 $23,798.4 -63.2% 159 48,939 PNC Financial Services Group Inc.Pittsburgh

Paul Clarkregional president

3Huntington National Bank917 Euclid Ave., Cleveland 44115(800) 480-2265/www.huntington.com

$8,171.1 $7,675.1 6.5% 136 10,045 Huntington Bancshares Inc.Columbus

Daniel P. Walsh Jr.presidentGreater Cleveland region

4FirstMerit Bank NA106 S. Main St., Akron 44308(888) 384-6388/www.firstmerit.com

$7,136.0 $6,757.2 5.6% 125 3,095 FirstMerit Corp.Akron

Paul G. Greigchairman, CEO

5Charter One1215 Superior Ave., Cleveland 44114(216) 566-5300/www.charteronebank.com

$6,941.5 $6,561.1 5.8% 111 16,352 Royal Bank of Scotland Group PLCEdinburgh, Scotland

Kenneth E. MarblestonepresidentOhio region

6JPMorgan Chase & Co.1300 E. Ninth St., Cleveland 44114(877) 226-5663/www.chase.com

$4,791.4 $4,653.5 3.0% 97 173,596 JPMorgan Chase & Co.New York

James M. MalzpresidentNortheast Ohio market

7Fifth Third Bank600 Superior Ave. E, Cleveland 44114(216) 274-5300/www.53.com

$4,402.7 $4,360.4 1.0% 86 20,479 Fifth Third BancorpCincinnati

Todd F. Clossin, regionalpresident and CEO, Fifth ThirdBank, Northeastern Ohio

8U.S. Bank NA1350 Euclid Ave., Cleveland 44115(216) 623-9300/www.usbank.com

$2,057.0 $1,970.9 4.4% 111 57,128 U.S. BancorpMinneapolis

Kurt C. TreupresidentU.S. Bank, Cleveland

9Lorain National Bank457 Broadway Ave., Lorain 44052(440) 244-6000/www.4lnb.com

$975.4 $1,040.8 -6.3% 20 273 LNB Bancorp Inc.Lorain

Daniel E. Klimaspresident, CEO

10The Farmers National Bank of Canfield20 S. Broad St., Canfield 44406(330) 533-3341/www.fnbcanfield.com

$635.8 $593.1 7.2% 13 265 Farmers National Banc Corp.Canfield

John S. Gulaspresident, CEO

11Citizens Banking Co.100 E. Water St., Sandusky 44870(419) 625-4121/www.citizensbankco.com

$529.7 $508.9 4.1% 12 287 First Citizens Banc Corp.Sandusky

James O. Millerpresident, CEO

12Middlefield Banking Co.15985 E. High St., Middlefield 44062(440) 632-1666/www.middlefieldbank.com

$475.8 $361.0 31.8% 8 91 Middlefield Banc Corp.Middlefield

Thomas G. Caldwellpresident, CEO

13Citizens BankOne Citizens Banking Center, Flint, Mich. 48502(800) 676-6276/www.citizensbanking.com

$375.7 $371.9 1.0% 14 1,985 Citizens Republic Bancorp Inc.Flint, Mich.

Jamie LynchOhio district president

14Cortland Savings and Banking Co.194 W. Main St., Cortland 44410(330) 637-8040/www.cortland-banks.com

$371.2 $387.1 -4.1% 14 146 Cortland BancorpCortland

James M. Gasiorpresident, CEO

15First National Bank112 W. Market St., Orrville 44667(330) 682-1010/www.fnborrville.com

$311.7 $283.6 9.9% 14 104 National Bancshares Corp.Orrville

David C. Vernonpresident, CEO

16First National Bank of Pennsylvania166 Main St., Greenville 16125(800) 494-2265/www.fnb-online.com

$283.5 $259.5 9.2% 11 2,125 F.N.B. Corp.Hermitage, Pa.

Stephen J. Gurgovitspresident, CEO

17Andover Bank19 Public Square, Andover 44003(440) 293-7605/www.andoverbankohio.com

$253.9 $232.5 9.2% 8 91 Andover Bancorp Inc.Andover

Martin R. Colepresident, CEO

18Liberty Bank NA2351 Edison Blvd., Twinsburg 44087(330) 425-3033/www.libertybankna.com

$223.0 $142.8 56.1% 3 47 NA William A. Valerianchairman, president, CEO

19Portage Community Bank1311 E. Main St., Ravenna 44266(330) 296-8090/www.pcbbank.com

$194.8 $182.4 6.8% 2 48 Portage Bancshares Inc.Ravenna

Richard J. CoeCEO

20Farmers Savings Bank111 W. Main St., Spencer 44275(330) 648-2441/www.fsb-spencer.com

$186.6 $169.0 10.4% 2 29 NA Thomas W. Leepresident, CEO

21Western Reserve Bank4015 Medina Road, Medina 44258(330) 764-3131/www.westernreservebank.com

$185.7 $173.3 7.2% 3 35 Western Reserve Bancorp Inc.Medina

Edward J. McKeonpresident, CEO

22Independence Bank4401 Rockside Road, Independence 44131(216) 447-1444

$144.8 $134.2 7.9% 1 23 Independence BanccorpIndependence

Christopher Mackpresident

23Premier Bank and Trust(2)6141 Whipple Ave. NW, North Canton 44720(330) 478-1000/www.mypremierbankandtrust.com

$139.2 $157.4 -11.6% 4 57 Ohio Legacy Corp.North Canton

Rick L. Hullpresident, CEO

24Buckeye Community Bank105 Sheffield Center, Lorain 44055(440) 233-8800/www.buckeyebank.com

$133.6 $128.9 3.7% 1 26 Buckeye Bancshares Inc.Lorain

Bruce E. Stevenspresident, CEO

25Consumers National Bank614 E. Lincoln Way, Minerva 44657(330) 868-7701/www.consumersbank.com

$116.6 $113.3 2.8% 5 103 Consumers Bancorp Inc.Minerva

Ralph J. Lober IIpresident, CEO

26Sutton Bank3 S. Main St., Attica 44807(419) 426-3641/www.suttonbank.com

$112.6 $105.4 6.8% 6 98 Sutton Bancshares Inc.Attica, Ohio

Eric A. Gillettvice chairman, CEO

27Croghan Colonial Bank323 Croghan St., Fremont 43420(419) 332-7301/www.croghan.com

$83.0 $78.3 6.0% 3 149 Croghan Bancshares Inc.Fremont, Ohio

Rick M. Robertsonpresident, CEO

28Lake National Bank7402 Center St., Mentor 44060(440) 205-8100/www.lakenationalbank.com

$82.4 $81.2 1.6% 1 18 NA Richard T. Flenner Jr.president, CEO

29Apple Creek Banking Co.21 E. Main St., Apple Creek 44606(330) 698-5003/www.applecreekbank.com

$75.4 $73.9 2.0% 6 40 Apple Creek Banc Corp.Apple Creek

Kurt KlineCEO

30The First National Bank of Bellevue120 North St., Bellevue 44811(419) 483-7340/www.fnblifetime.com

$71.7 $69.3 3.5% 2 41 First Bancshares Inc.Bellevue

Dean J. Millerpresident, CEO

31The Park National Bank50 N. Third St., Newark 43058(740) 349-8451/www.parknationalbank.com

$68.0 $66.5 2.3% 3 1,774 Park National Corp.Newark, Ohio

Dan DeLawderchairman, CEO

See LIST Page 20


Akron General Health System announced the return of Alan Papa, who

will take over as president of its511-bed medical center in downtown Akron.

Mr. Papa, who will begin hisnew role Jan. 31, comes fromMt. Carmel-West, a Trinity Healthhospital in the Columbus area,where he served as presidentand chief operating officer since2007. He will replace Dr. JackMitstifer, who has served in aninterim role as Akron General’spresident of inpatient servicessince March 2009.

Prior to his work at Mt.Carmel-West, Mr. Papa servedfor more than eight years asAkron General Health System’ssenior vice president for networkservices and operations.

Mr. Papa holds degrees fromYoungstown and Cleveland stateuniversities. — Timothy Magaw

Decreased significantly 25

Mr. Gingerich said there is moreoptimism afoot because financingwoes have eased a little andmegaprojects are on the horizon.But making it to tomorrow is themore immediate concern. To cope,contractors are seeking more workoutside the area and are pursuingsmaller projects.

Hamilton Biggar, vice presidentof Cleveland-based Drake Construc-tion Co., said the downturn haschanged the general contractor’swillingness to take on out-of-townwork.

“It used to be we worked out oftown within an hour-and-a-half drive. Now we’re in the car sevenhours, often going to places withoutair service,” Mr. Biggar said.

Half of Drake’s work now is outside Northeast Ohio, mostly involving retail properties and federally financed renovations of affordable and low-income housingcomplexes dating from the 1970s.

“Much of the traditional work hasdried up,” Mr. Biggar said.

For instance, outfitting offices fortenants moving into new space wasa steady source of business at onetime.

“Now they’re going with a littlepaint and new carpet,” Mr. Biggarsaid.

Building contractors and subcon-tractors also are coping by going after smaller jobs than in the past.Skoda Minotti reports 54% of contractors are bidding on smallerjobs than a year ago, while 26% arestaying in the same project rangeand 20% are seeking larger jobs.

Money matters matterBuilders are hurting because

they’ve been hit by a financing double whammy: Tight real estatelending standards not only haveshrunk their pool of available business as developers scrounge formoney, but contractors also facemore trouble financing their companies’ operations.

Two years after a financial crisisrocked the country, 40% say theirability to obtain financing wasdown slightly this year, and 25%said it decreased significantly. Onething that’s up, though, is that 72%of the contractors report lenders

require more financial informationthan before.

Financing also is a big issue forcommercial property owners anddevelopers.

Asked in the survey to list thesources they use for new develop-ment and acquisitions, 50% of therespondents cite private equity,40% say seller financing and 38%say regional banks. The most signif-icant obstacle to getting a deal doneis credit, according to 42% of the respondents. However, 60% saythey the credit market will loosenup in the coming year.

Big projects to the rescue?Relief for construction contrac-

tors, if not developers, may loom onthe horizon in downtown Clevelandwhen construction begins on themedical mart and convention center,the casino and the Flats East BankNeighborhood and its Ernst &Young Tower office building.

Mr. Biggar said those big-ticketjobs will occupy large contractorsand free up opportunities for smallercontractors for projects in the rangeof $20 million and below.

Dominic Ozanne, CEO of OzanneConstruction Co., said he’s confidentthe megaprojects will stabilizemuch of the construction market.

“Cleveland does not follow any-one else’s script,” Mr. Ozanne said.“In terms of downtown, I’m veryoptimistic about what I see the next few years. The convention center and casino will get the motor running for other projects.”

In Ozanne’s case, a variety ofpublic works projects such as a jailin New Orleans and corporate assignments such as the new Nord-son Corp. headquarters in Westlakecontributed to a good year in 2010.

“We look forward to seeing theseprojects moved ahead and to stay inthe game a few more years” despitethe current challenges, Mr. Ozannesaid.

Overall, Skoda Minotti’s Mr. Gingerich said, the tenor of thisyear’s outlook is more positive thanlast year’s.

“We believe we are reaching thebottom,” Mr. Gingerich said, thoughhe added, “Reaching some form ofnormalcy will be a long, windingroad.” ■


888-801-1666www.middlefieldbank.com

The Middlefield Banking Company

Business Lending Made Easy!

WELCOME TO

Contractors: Builders cite financing difficultiescontinued from PAGE 3 Former VP at

Akron Generalback as boss

ON THE WEB Story from www.CrainsCleveland.com.

AN UPHILL CLIMBSkoda Minotti’s annual survey of construction contractors and the real estate industry shows continued challenges.

Have you had more or fewer opportunities this year?

2010 2009 2008More opportunities 32% 27% 39%

Fewer opportunities 43 49 36

Real estate owners/developers:How do you plan to manage

increased vacancies if they occur?

Over the last year, has your abilityto obtain financing ...

responsesDecreased slightly 40%

Increased 9

Stayed the same 26

Tightening credit 16

What is the biggest threat to yourbusiness over next 12 months?

responsesLack of work 69%

Material costs 3

Other 12

Increase marketing 47

responsesLower rents 68%

Other cash sources 39

Real estate owners/developers:Are you seeing decreasing rents in

the market?

Slight decrease 46

responsesSignificant decrease 37%

No decrease 17



BANKS IN NORTHEAST OHIORANKED BY DEPOSITS(1)

Northeast Ohiodeposits (millions)

Rank

NameAddressPhone/Web site 6-30-2010 6-30-2009 % change Offices

Employees(companywide)

6-30-2010 Holding company Top local executive

32Ohio Commerce Bank24400 Chagrin Blvd., Beachwood 44122(216) 910-0550/www.ohiocommercebank.com

$63.5 $49.2 29.0% 1 17 NA Dell R. Duncanpresident, CEO

33Farmers State Bank11 S. Main St., West Salem 44287(419) 853-4631/https://farmersstate-oh.com

$61.8 $56.3 9.9% 5 36Community Independent Bancorp

Inc.West Salem

Marlene Barkheimerpresident, CEO

34The Bank of Magnolia Co.122 N. Main St., Magnolia 44643(330) 866-9392/www.bankofmagnolia.com

$59.1 $59.7 -1.0% 3 23 Magnolia Bancorp Inc.Magnolia

Kevin Greerpresident

35Commercial & Savings Bank91 N. Clay St., Millersburg 44654(330) 674-9015/www.csb1.com

$34.9 $27.3 27.6% 4 143 CSB Bancorp Inc.Millersburg

Rick L. Gintherpresident, CEO

36National Bank and Trust Co.(3)5603 Ridge Road, Parma 44129(440) 884-1112/www.nbtdirect.com

$17.9 NA NA 1 231NB&T Financial Group Inc.

Employee Stock Ownership PlanWilmington

John J. Limbertpresident, CEO

37Woodforest National Bank13301 E. Freeway Drive, Houston 77015(877) 968-7962/www.woodforest.com

$13.8 $10.5 31.8% 17 3,765 Woodforest Financial Group Inc.Houston, Texas

Robert E. Marling Jr.CEO

Source: Federal Deposit Insurance Corp., www.fdic.gov, Summary of Deposits reports. Crain's Cleveland Business does not independently verify the information and there is noguarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual listsand The Book of Lists are available to purchase at www.crainscleveland.com. (1) Banks with deposits in Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain,Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties are included in this list. Only deposits from those counties are used for the NE Ohio deposit numbers.(2) Formerly Ohio Legacy Bank NA. (3) Formerly American National Bank.

RESEARCHED BY Deborah W. Hillyer

LARGEST SAVINGS INSTITUTIONSRANKED BY NORTHEAST OHIO DEPOSITS(1)

Deposits Non-performing loans

Rank

Company nameHeadquarters addressPhone/web site 6-30-2010 6-30-2009 % change

2010 entiremarket share

%(2)Total assets($millions)

$ millions6-30-2010

% of grossloans

6-30-2010

Netincome

($millions)Top local executiveTitle

1Third Federal Savings & Loan Assn.7007 Broadway Ave., Cleveland 44105(216) 441-6000/www.thirdfederal.com

$6,281.2 $6,191.4 1.5% 7.5 $10,894.3 $227.1 2.5% $12.9 Marc A. Stefanskichairman, president, CEO

2Ohio Savings Bank, A Division of New York CommunityBank(3)1801 E. Ninth St., Cleveland 44114(216) 588-4100/www.amtrust.com

$2,438.7 $3,502.2 -30.4% 2.9 $39,788.7 $851.8 3.1% $266.3Robert J. Tolomerexecutive vice president, officer-in-charge

3First Place BankP.O. Box 551, Warren 44482(330) 373-1221/www.firstplace.net

$1,838.6 $1,764.1 4.2% 2.2 $3,152.6 $91.5 3.6% ($25.5) Steven R. LewisCEO

4Dollar Bank FSB1301 E. Ninth St., Cleveland 44114(216) 736-8900/www.dollarbank.com

$1,595.8 $1,460.7 9.3% 1.9 $5,746.1 $47.5 1.1% $22.4 Andrew D. Devonshirepresident, Ohio banking region

5Home Savings & Loan Co.275 Federal Plaza W., Youngstown 44503(330) 742-0500/www.homesavings.com

$1,243.9 $1,335.1 -6.8% 1.5 $2,314.9 $155.1 8.5% ($9.5) Douglas M. McKaychairman, president, CEO

6First Federal Savings & Loan Assoc.14806 Detroit Ave., Lakewood 44107(216) 221-7300/www.ffl.net

$1,001.1 $952.5 5.1% 1.2 $1,237.6 $17.0 1.8% $0.4 Gary R. Fixpresident, CEO, managing officer

7Park View Federal Savings Bank30000 Aurora Road, Solon 44139(440) 914-3900/www.parkviewfederal.com

$695.7 $764.5 -9.0% 0.8 $867.5 $69.1 11.3% ($7.4) Robert J. King Jr.president, CEO

8Westfield Bank FSBTwo Park Circle, Westfield Center 44251(800) 368-8930/www.westfield-bank.com

$351.8 $296.3 18.7% 0.4 $500.5 $4.5 1.3% $1.2 Jon W. Parkpresident

9First Federal S&L Assn. of Lorain3721 Oberlin Ave., Lorain 44053(440) 282-6188/www.firstfedlorain.com

$349.7 $321.6 8.7% 0.4 $450.4 $13.2 3.4% $0.5 John R. Malanowskipresident, COO

10Wayne Savings Community Bank151 N. Market St., Wooster 44691(330) 264-5767/www.waynesavings.com

$291.7 $284.4 2.6% 0.4 $407.5 $3.9 1.6% $1.1 Phillip E. Beckerpresident, CEO

11Geauga Savings Bank10800 Kinsman Road, Newbury 44065(440) 564-9441/www.geaugasavings.com

$253.8 $261.8 -3.1% 0.3 $432.8 $26.5 9.4% $0.1 Allen Lencioni Sr.president, CEO

12CFBank2723 Smith Road, Fairlawn 44333(330) 666-7979/www.cfbankonline.com

$131.6 $122.0 7.8% 0.2 $273.3 $7.7 3.4% ($5.3)Eloise MackusTherese A. Liutkusinterim CEOpresident, CFO

13Century Bank(4)1640 Snow Road, Parma 44134(216) 351-7000/www.centurybankoh.com

$122.6 $124.9 -1.8% 0.2 $129.5 $2.9 3.3% ($1.0) Jeffrey J. Calabresepresident, CEO

14Home Savings Bank142 N. Water St., Kent 44240(330) 673-9827/www.homesavingsbnk.com

$113.8 $103.5 9.9% 0.1 $138.1 $2.0 1.9% $0.3 Howard T. Boyle IIpresident, CEO

15North Akron Savings Bank158 E. Cuyahoga Falls Ave., Akron 44310(330) 434-9137/www.northakronsavingsbank.com

$111.6 $108.1 3.2% 0.1 $159.2 $2.5 2.2% $0.2 Stephen D. Hailerpresident, CEO

16Conneaut Savings Bank305 Main St., Conneaut 44030(440) 599-8121 /www.conneautsavings.com

$75.3 $64.6 16.5% 0.1 $88.5 $0.8 1.5% $0.1 Philip Heffelfingerpresident, CEO

17Valley Savings Bank140 Portage Trail, Cuyahoga Falls 44222(330) 923-0454/www.valleysavingsbank.com

$71.4 $67.8 5.3% 0.1 $107.5 $0.1 0.1% $0.5 Ann Durrpresident, COO

Source: Highline Financial LLC. NA=Not available. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are completeor accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. (1) Deposit information includes branches located inAshland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties, as of June 30, 2010, and June 30,2009. All other numerical data is institution-wide as of June 30, 2010. (2) Includes all financial institutions in the 15 county coverage area. (3) Formerly AmTrust Bank, purchasedby New York Community Bank, Dec. 4, 2009. (4) First Federal of Lakewood has signed an agreement to acquire Century Bank. The deal is expected to close in December.

RESEARCHED BY Deborah W. Hillyer



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

Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card

LEGAL NOTICES

AATTTTEENNTTIIOONN RREEAALLTTOORRSS::Now is a great time to promote your

Luxury Properties to high-end prospects

AND receive reduced rates on

your advertising.

Call Genny Donley at (216) 771-5172 ore-mail [email protected] for more details.

Crain’s Cleveland BusinessOnline Property Search

Powered by LoopNet,No. 1 in Commercial Real Estate online

Looking for property? Search thousands of local listings

Selling or leasing a property?Get your property featured through Crain’s

www.CrainsCleveland.com/LoopNet

For advertising opportunitiescontact Genny Donley

[email protected]

LEGAL NOTICEOHIO TURNPIKE COMMISSION

682 Prospect StreetBerea, Ohio 44017

(440) 234-2081

REQUEST FOR PROPOSALSCONSULTING SERVICES RELATED TO THE OHIO TURNPIKE COMMISSION’S

PROPERTY AND CASUALTY INSURANCE PROGRAM

The Ohio Turnpike Commission (“Commission”) has issued a Request forProposals (“RFP”) for Consulting Services Related to the Ohio TurnpikeCommission’s Property and Casualty Insurance Program, with services tocommence in late January 2011 as described in the RFP Specifications.

One (1) original and three (3) copies of sealed proposals will bereceived at the Commission’s offices, 682 Prospect Street, Berea, OH44017, c/o the Purchasing Department, until 2:00 P.M. (E.S.T.),January 6, 2011.

THE FIRM SELECTED AS THE CONSULTANT UNDER THISRFP WILL BE PRECLUDED FROM BIDDING ON THECOMMISSION’S PROPERTY AND CASUALTY INSURANCEPROGRAM. CONSULTANTS, WITH THEIR RESPONSES TOTHIS RFP, MUST ALSO DISCLOSE TO THE COMMISSION ANYPOTENTIAL CONFLICTS OF INTEREST OR BUSINESSAFFILIATIONS WITH OTHER INSURANCE BROKERS AND/ORCARRIERS.

The RFP is on file and available from the Purchasing Department at (440)234-2081. This document will be forwarded upon request and withoutcharge to any interested, prospective Responding Insurance Consultants.All inquiries concerning this RFP must be submitted in writing to KevinGolick, Purchasing Manager, via email to [email protected],or facsimile [fax number (440) 234-0232], with the Inquiry Period endingat the close of business 5:00 P.M. (E.S.T.) on December 28, 2010.

The Commission reserves the right to require Responding InsuranceConsultants to submit additional written or oral clarifications to theirProposals.

The Commission further reserves the right to reject any and all Proposalsand to waive irregularities and defects. The Commission will notify theSuccessful Insurance Consultant as soon as practicable after the receiptand review of Proposals.

OHIO TURNPIKE COMMISSION

Published in Crain’s Cleveland Business December 13, 2010

NOTICE TO BIDDERSNotice is hereby given that sealed proposals will be received in the Boardof County Commissioners Office of Procurement & Diversity, Room 110,County Administration Building, 1219 Ontario Street, Cleveland, Ohio44113 until 11:00 A.M., (Local Time) on:

January 25, 2011 for: The lease of County-owned property no longerneeded for public use: Permanent Parcel Nos. 101-09-027 located at 1264& 1276 W. Third Street, Cleveland, Ohio, as per County RequisitionNo. CT-10-18978. Any questions concerning the property may bedirected to the Real Estate Division, at (216) 698-2517.

The official closing time shall be determined by the wall clock locatedin the Office of Procurement & Diversity, Room 110, CountyAdministration Building, 1219 Ontario Street, Cleveland, Ohio 44113.Late bids will be returned unopened.

Specification and proposal blanks may be obtained at the Office ofProcurement & Diversity (Same Address). Interested bidders may visitthe site (1264 & 1276 W. Third Street, Cleveland, Ohio) for awalk-thru on Tuesday, January 11, 2011 at 2:00 PM.

The Board of County Commissioners reserves the right to accept or rejectany or all bids.

By order of the Board of County Commissioners of Cuyahoga County.Jimmy Dimora Timothy F. Hagan Peter Lawson Jones

Lenora Lockett, Director, Office of Procurement & Diversity

Publish in Crain’s Cleveland BusinessDecember 6, 2010 and December 13, 2010

This notice may also be viewed at the following Cuyahoga CountyInternet Web Site: www.opd.cuyahogacounty.us by clicking on the showevents tab and the bid due date month. A list of open bids will appear onthe next screen.

Prepared By: Wanda Graves, Real Estate Division (DS)

NOTICE TO BIDDERSNotice is hereby given that sealed proposals will be received in the Boardof County Commissioners Office of Procurement & Diversity, Room 110,County Administration Building, 1219 Ontario Street, Cleveland, Ohio44113 until 11:00 A.M., (Local Time) on:

January 25, 2011 for: The sale of County-owned property no longerneeded for public use: Permanent Parcel Nos. 110-04-005 to 007, 60 to63, 80 to 82 and 117 to 124 located at 12212 St. Clair Avenue,Cleveland, Ohio, as per County Requisition No. CT-10-18993. Anyquestions concerning the property may be directed to the Real EstateDivision, at (216) 698-2517.

The official closing time shall be determined by the wall clock locatedin the Office of Procurement & Diversity, Room 110, CountyAdministration Building, 1219 Ontario Street, Cleveland, Ohio 44113.Late bids will be returned unopened.

Specification and proposal blanks may be obtained at the Office ofProcurement & Diversity (Same Address). Interested bidders may visitthe site (12212 St. Clair Avenue, Cleveland, Ohio) for a walk-thru onTuesday, January 11, 2011 at 11:00 AM.

Each purchase offer bid must be accompanied by a “Certified Check”,“Cashier’s Check” or “Money order” drawn on a solvent bank or Savingsand Loan Association, payable to the Treasurer of Cuyahoga County,Ohio, in a sum equal to 5% of the amount bid, conditioned that if such bidis accepted, the bidder shall proceed with the purchase. The balance of theamount bid is due from the successful bidder within sixty (60) days afteraward by the Board of County Commissioners.

The above described parcel and interest to the conveyed will be byQuit-Claim Deed.

The Board of County Commissioners reserves the right to accept or rejectany or all bids.



Publish in Crain’s Cleveland BusinessDecember 13, 2010 and December 20, 2010

This notice may also be viewed at the following Cuyahoga CountyInternet Web Site: www.opd.cuyahogacounty.us by clicking on the showevents tab and the bid due date month. A list of open bids will appear onthe next screen.

NOTICE TO VENDORSNotice is hereby given that sealed proposals will be received in the Boardof County Commissioners Office of Procurement & Diversity, Room 110,County Administration Building, 1219 Ontario Street, Cleveland, Ohio44113 until 11:00 A.M. local time on February 28, 2011 for lease ofoffice space for Departments of Senior & Adult Services, Child SupportEnforcement Agency & Department of Development for the periodOctober1, 2011 thru September 30, 2016.

Required geographic locations: The space must be in an area boundedby:

North: Lake Erie East: E. 55th StSouth: Carnegie Ave West: W. 65th St

The official closing time shall be determined by the wall clock located inthe Office of Procurement & Diversity. (SAME ADDRESS)Late proposals will be returned unopened.

There will be a Pre-proposal Conference on January 11, 2011 at 10:00 AMat 1701 E. 12th St., Senior & Adult Offices – Lower Level ConferenceRoom. IT IS STRONGLY RECOMMENDED THAT INTERESTEDVENDORS ATTEND.

Specifications and proposal blanks may be obtained at the Board ofCounty Commissioners Office of Procurement & Diversity. (SAMEADDRESS)

Payment will only be made upon approval of the Board of CountyCommissioners and payments will be warrants issued by the CountyAuditor upon notification from the Commissioners.

The Board of County Commissioners reserves the right to accept or rejectany proposals or any part or all parts of any proposal submitted, and waiveall technicalities.

Each proposal must state in full the name and address of each person, firmor corporation interested in the proposal submitted.



Advertise in Crain’s Cleveland Business on December 13, 2010 andDecember 20, 2010

NOTICE TO VENDORSNotice is hereby given that sealed proposals will be received in the Boardof County Commissioners Office of Procurement & Diversity, Room 110,County Administration Building, 1219 Ontario Street, Cleveland, Ohio44113 until 11:00 A.M. local time on January 14, 2011 for lease of officespace for a Public Safety Service Center (PSSC) for the period June 01, 2011to May 31, 2016.

Required geographic locations: The space must be in an area boundedapproximately by:

The PSSC must be constructed within Cuyahoga County, in a locationthat will minimize the effects of any local hazards (hazmat routes, raillines, airports, high band snow areas, areas of flooding, high voltagepower lines), cannot be in a 100-year flood plain nor will it change oralter listed or nationally designated historic sites or structures. Ease-of-access for public officials is essential. Close proximity to governmentoffices and non-hazmat route highways for easy access by agencyrepresentatives and elected officials should be demonstrated in respons-es. A set back from public rights-of-way shall be a minimum of 200yards.

The official closing time shall be determined by the wall clock located inthe Office of Procurement & Diversity. (SAME ADDRESS)Late proposals will be returned unopened.

There will be a Pre-proposal Conference on December 29, 2010 at 10:00A.M. local time at The Department of Central Services, 2nd floor confer-ence room, 1642 Lakeside Avenue, Cleveland, OH 44114. IT IS STRONG-LY RECOMMENDED THAT INTERESTED VENDORS ATTEND.

Specifications and proposal blanks may be obtained at the Board ofCounty Commissioners Office of Procurement & Diversity. (SAMEADDRESS) Questions may be addressed to Mr. John Myers, Real Es-tate Manager at 216.698.2517.

Payment will only be made upon approval of the Board of CountyCommissioners and payments will be warrants issued by the CountyAuditor upon notification from the Commissioners.

The Board of County Commissioners reserves the right to accept or rejectany proposals or any part or all parts of any proposal submitted, and waiveall technicalities.

Each proposal must state in full the name and address of each person, firmor corporation interested in the proposal submitted.



Advertise in Crain’s Cleveland Business on December 13, 2010 andDecember 20, 2010

WANTED: Your subscription to Crain’s Cleveland BusinessTo sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.”

CLASSIFIED CONTINUED ON NEXT PAGE >>>>>



REAL ESTATE

Classified AdsClassified AdsWWORK!ORK!

E-MAIL US YOUR [email protected]

OFFICE SPACE

AUCTIONREAL ESTATE FOR SALE

For Sale Rocky RiverBeachcliff Area

Newer A1, 18800 sq ft, 60+parking 440-333-0000x777

FOR LEASERESTAURANT/BAR/RETAIL

LEASE - ROCKY RIVER between Detroit & Lake

440-333-0000 EXT.777

Water Park, Go-Cart and MiniGolf Complex - Port Clinton, Ohio

This 33 acre site contains four pools with several water features, a minigolf course, Bumper Boat pond and Go-Cart Track. The property containsfive outbuildings that house arcade games, kitchen facilities, office,locker rooms and storage. All equipment and fixtures are still intact andsell with the property. There are 17 acres of the site that are available forfuture expansion. Many upgrades and maintenance items were done in2010 and the park is in operating condition. This is a great opportunity topurchase a turn-key business in the vacation heartland of Lake Erie,Marblehead and Catawba Island at a fraction of the cost to build.

For additional information or to view this property:Contact Dean Miller at 419-483-7340

Real Estate Auction

Bambeck Auctioneers Inc.www.bambeck.com

December 15, 2010, 11:00 AM

Ashland Lakes - Court Ordered SaleAuction Site:

170 Summerset Dr., Ashland OH

Visit Our Web Site For Details

• 130 Total Acres

• 5 Parcels•(8) Brick Triplexes

• Lakes, Barn• Single Family

Homes

CLASSIFIEDBUSINESS SERVICES

SUSTAINABILITYAttn: CEOs & CFOs

Tired of high electric bills?

Save 50-70% on your lighting

energy costsGUARANTEED!

FREE no-risk analysis No disruption to your operation 40K sq. ft. minimum Payback in 12-24 months

Why wait? Call today!330-931-3905www.ROI-Energy.com

FLYNNENVIRONMENTAL

For Assessments(800) 690-9409

www.flynnenvironmental.com

LanderhavenAsk About

New Year's Eve440.449.0700

ExecutiveCaterers.com

Centerline Drafting ServiceSolid Modeling, Design & Drafting

Serving Small Business on anas needed basis since 1995

330-225-6053www.CenterlineDraftingService.com

CCrraaiinn’’ss EExxeeccuuttiivvee RReeccrruuiitteerr

BIZDOM UBizdom U, the nationally recognized entrepreneurshipboot camp founded by Dan Gilbert has announced it will openin downtown Cleveland. Tremendous opportunity to play a keyrole in a dynamic entrepreneurial training program. Now hiringwell-qualified individuals to join our Bizdom Cleveland leader-ship team for the following positions: • Training Leader • Recruiter • Administrative CoordinatorFor more information and to apply, go to www.bizdom.com/apply

Crain Communications, Inc. hastwo positions open in their

Cleveland and Akron offices.For more info, go to:

www.crainscleveland.com/crainjobs

Another Thoma Bravo company,Flexera Software Inc. of Chicago, isexecuting a dividend recapitaliza-tion deal as well. It aims to raise$215 million, $90 million of whichwill go to shareholders.

A principal from Thoma Bravodeclined to comment on the divi-dend recapitalization plan for HylandSoftware. A spokeswoman from theWestlake company who spoke withCrain’s on Dec. 3 did not call back orrespond to two follow-up phonemessages and an e-mail sent lastweek.

Such deals are becoming morecommon because they give invest-ment firms — which often couldn’tsell companies for a good price during the recession — a quick wayto return cash to investors, accordingto two experts who spoke withCrain’s. They added that some companies are executing dividend recaps now in case Congress choosesnot to renew Bush-era laws that reduced tax rates on dividends andcapital gains.

The deal would burden HylandSoftware with more debt, but thecompany should be able to handleit, according to the Moody’s andS&P reports.

Moody’s reiterated Hyland Soft-ware’s B2 credit rating, and S&P reiterated its B+ credit rating. Bothcompanies gave Hyland Software a“stable” outlook, citing its solid cashflow as well as its success in expandingits product lineup and sales chan-nels through acquisitions.

They noted, however, that thecompany faces competition frommuch larger companies, including

Microsoft, Oracle and IBM. HylandSoftware had revenues of about$155 million in the 12 months thatended Sept. 30.

Reasons for recapsSoftware firms often can handle

extra debt given their reduced needfor capital, said Terence Tchen,managing director of HoulihanLokey, a Los Angeles-based invest-ment bank.

“For that type of company,putting on some type of leverage isn’tunreasonable,” Mr. Tchen said.

Dividend recap deals also can sig-nify that investors have confidencein a given company’s ability to growin value, Mr. Tchen said.

“They’re saying, ‘Now is not thetime we’ll get the biggest bang forour buck in terms of a sale or anexit,’” he said.

A dividend recap deal also can indicate that a company is amongthe stronger businesses in the port-folio of its majority owner, said AlanWink, a director with accountingfirm EisnerAmper LLP of New York.

“It might be one of the invest-ments in their portfolio that, because of its performance, allowsthem to take money out,” Mr. Winksaid.

Dividend recaps can be an “attractive alternative” for owners,especially in a poor market for sellingcompanies, Mr. Wink said. Still, theincreased debt load could provetroublesome if the company’s profitsstart slipping, he said.

“If their performance deterio-rates and they have more debt ontheir balance sheet, that’s not agood thing,” he said. ■

Hyland: Dividend recapsbecome more commoncontinued from PAGE 1

IN BRIEFCorporate retirementplans on the upswing

Third-quarter asset levels risefrom previous quarter

U.S. corporate retirement plans hadcombined assets of $5.661 trillion asof Sept. 30, up 6.5% from threemonths earlier, according to the Federal Reserve’s Flow of Funds report issued last week.

The third-quarter increase reversed adecline of 6.8% in the previous quarter.

Corporate defined benefit plan assets totaled $2.154 trillion as ofSept. 30, up 5% from the previousquarter. Total assets in corporate defined contribution plans were $3.507trillion, up 7.5%.

The value of equities in corporate defined benefit plans was $750 billion,up 6.8%, while the value of bonds was$364 billion, up 2.8%.

In corporate defined contributionplans, the value of equities was $1.082trillion, up 11%, while the value ofbonds was $105 billion, down 2.8%.

Corporate defined benefit plans sawoutflows of $21.5 billion for the quarter,while corporate defined contributionplans had inflows of $52.5 billion.

Total assets in state and local government retirement funds as ofSept. 30 were $2.729 trillion, up 6.9%,while the federal government’s retire-ment fund assets totaled $1.336 tril-lion, up 1.9%.

“The overall growth of pension assets was due to the positive returnsin equity markets during the third quar-ter,” Craig Copeland, senior researchassociate for the Employee Benefit Research Institute, said in an interview.

Mr. Copeland said defined contribu-tion plans “had positive net contribu-tions for the quarter, while (definedbenefit) plans had negative net contri-butions because (defined benefit) planshave a declining number of active

participants while the number of partici-pants in (defined contribution) planscontinues to go up.” — Doug Halonen, Pensions & Investments

■ KEEP ON ROLLING:Robert J. Keegan, formerchairman, president and CEOof Goodyear Tire & RubberCo., has been elected to XeroxCorp.’s board of directors.

“Bob brings to the Xeroxboard a proven track recordof business success,” saidXerox chairman and CEO Ursula Burns. “His leadership experi-ence, respected financial and businessacumen and global expertise will serveXerox and our shareholders well, andwill complement the strong talent ofour board of directors.”

Mr. Keegan, 63, served as Akron-based Goodyear’s president and CEOfrom January 2003 to April of this yearand as chairman from July 2003 to October of this year. Prior to joiningGoodyear in 2000 as chief operatingofficer, he was president of the consumer imaging business at East-man Kodak Co.

Mr. Keegan received a bachelor ofscience degree in mathematics fromLeMoyne College in Syracuse, N.Y.,and an MBA in finance from the Univer-sity of Rochester, where he currently ison the board of trustees. Mr. Keeganalso is a board member of the AutismFamily Foundation of Northeast Ohio.— Tire Business

■ HEALTHY CASH AMOUNTS:Hospitals and health systems surveyedby Moody’s Investors Service couldconvert nearly all their investments intocash within one month, according to anewly released report.

The ratings agency analyzed invest-ment and short-term debt portfolios formore than 300 nonprofit hospitals andhealth systems. Their median percentageof unrestricted cash and investments— or cash not tied up by donor restric-

tions — that could be liquidated withinone month was 99.6%, Moody’s said.Including restricted cash, the medianslipped to 90%.

Of those surveyed, slightly less thanhalf, 46%, had alternative in-vestments such as hedgefunds or private equity,Moody’s said. Hedge fundsand private equity can lock upcash by limiting how quicklyinvestors may pull out. Such investments add stress tobalance sheets for borrowerswith debt sold to short-term

investors that abruptly may demand re-payment. — Melanie Evans, ModernHealthcare

■ TRASH TALK: About 31% of bottled water and water cooler bottleswere recycled in 2009, according tothe National Association for PET Container Resources and the Interna-tional Bottled Water Association.

Although recycling rates have doubledsince 2005, the rate is only a slight increase from 2008, when 30.9% ofthe containers were recycled, the orga-nizations said in their reports, “2009Post Consumer PET Bottle Bale Com-position Analysis” and “2009 Report onPET Water Bottle Recycling.” (PETstands for polyethylene terephthalate, aplastic resin and a form of polyester.)

The usage of recycled PET resin hasincreased 37% as well, the organiza-tions said.

“Recycling rates for bottled watercontainers had a modest but positiveincrease in 2009; steady as we go,”said Tom Lauria, vice president of com-munications at the International BottledWater Association.

“The doubling of the recycling ratesfor bottled water containers over thepast five years is encouraging but alsoa reminder that more needs to be doneto expand recycling efforts and collec-tion methods across the country,” hesaid. — Amanda Smith-Teutsch,Waste & Recycling News

Keegan


Wheeling and dealingin his own backyard■ Jergens Inc. CEO Jack Schron has beendoing business everywhere from China toEurope in recent years. But his company,which makes vises, specialty fasteners andother industrial tools, didn’t need to look farfor its latest acquisition.

“They were about 800 yardsdown the road,” Mr. Schron said,referring to the business he justbought from George Whalley Co.,which is a few doors down SouthWaterloo Road from his own quarters on Cleveland’s East Side.

Like Jergens, George Whalleyalso distributes industrial tools.Jergens has purchased the assets ofits industrial distribution business, whichprimarily serves Northeast Ohio manufac-tures, Mr. Schron said.

George Whalley, with about 30 employees,will continue to sell and distribute its specialized cutting tools.

Neither company disclosed revenues orthe sale price when the transaction was announced last Thursday, Dec. 9. — DanShingler

Another Super Bowl,another U. of Akron ad■ The University of Akron is wrapping up its13th Super Bowl commercial, and once againit’s starring the university’s president, LuisProenza.

“He’s really good at that,” said Lori Meek,

the university’s advertising manager. “He’sbecome quite the professional actor, but he’s not really acting — he’s being himself.”

Ms. Meek said the ad will air in the Cleve-land market during the Feb. 6 nationallytelevised football game. She wouldn’t elab-orate on details, but said the ad would play

off the same “energy” theme theuniversity has touted over the lastfive years. In recent ads, Dr. Proenzahas been shown handling a glowingorb of sorts to symbolize the energyat the university.

Ms. Meek would not disclose thecost of the producing the ad or ofairing it because the school still is involved with production andnegotiations.

The University of Akron’s nearby rival,Kent State University, launched a million-dollar marketing campaign this fallwith a series of new TV commercials. How-ever, Tom Neumann, Kent State’s associatevice president of university communica-tions and marketing, said the university hadno plans to go head to head with the AkronZips on Super Bowl Sunday.

“We don’t anticipate doing any ad buysfor the Super Bowl,” Mr. Neumann said. —Timothy Magaw

Jones Day lawyer translatesDodd-Frank for the Chinese■ Foreign financial institutions withbranches in the United States potentiallywill be exposed to greater regulation by the

United States as a result of The Dodd-FrankWall Street Reform and Consumer Protec-tion Act, a Jones Day partner recently explained to bankers and regulators in Beijing.

Brett Barragate, who splits his time between the firm’s Cleveland and New Yorkoffices, traveled to China for two days tospeak to the China Banking RegulatoryCommission about Dodd-Frank’s foreignimplications. Bob Graves, who co-heads the Jones Day banking and finance practice,accompanied him.

The regulation creates opportunities forforeign banks, too, as U.S. banks likely willshed and sell certain businesses because ofincreased constraints, Mr. Barragate said.

Chinese bankers were far more versed inDodd-Frank than Mr. Barragate expectedthem to be.

“They had been following it as close asanyone in the United States,” he said.

China’s “significant banks” do businesslending and investing via branches in NewYork, Mr. Barragate said, and Chinese insti-tutions have stated openly that they intendto increase their investment in the UnitedStates.

Unlike many here, Chinese bankersseemed less judgmental about Dodd-Frank,he said. Theirs is a practical approach, hesaid, an attempt to understand what Dodd-Frank is and how it affects them.

The China Banking Regulatory Commis-sion asked Mr. Barragate to speak, he said,noting a man who attended law school witha Jones Day partner now works for the commission. — Michelle Park

WHAT’S NEW

COMPANY: Audio-Technica, StowPRODUCTS: QuietPoint noise-canceling headphones

Audio-Technica has introduced some high-tech headphones that won’t break a holidayshopper’s budget.

Both the over-ear ATH-ANC27 ($99.95)and the on-ear ATH-ANC25 ($79.95) combine“combine immersive sound with long-wearingcomfort and make high-quality active noise-canceling technology more affordable thanever,” Audio-Technica says.

The ATH-ANC27 over-ear model has up to85% active noise-cancellation, and the ATH-ANC25 offers up to 80% active noise-cancel-lation, the company says. Both headphonesfeature technology that detects environmen-tal noise and applies a corresponding sound-canceling signal, according to Audio-Technica.They also “incorporate high-efficiency dri-vers, ergonomically designed earpieces andother refinements to deliver clear sound withimpactful bass, richly detailed midrange andtreble and precise imaging.”

Both models have a detachable cord, enabling their use as cordless noise-canceling headphones.

For information, visit www.Audio-Technica.com.

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

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK DECEMBER 6 - 12

The big story: Fortune Brands decided thatit might not be the best idea for one company tosell products as unrelated as Titleist golf balls,Moen faucets and Jim Beam liquor. It plans tobreak the company into three separate businesses.“We see the potential for even greater value byseparating our businesses into focused compa-nies at a time when they have emerged from theeconomic downturn in such strong positions,”said Fortune Brands CEO Bruce Carbonari, whorose through the ranks of the company, in part,by serving as CEO of Moen and Fortune Brands’Home and Hardware division prior to 2007.Moen’s operations are based in North Olmsted.

Partner in charge: Dennis M. Lafferty, alongtime leader in civic circles, joined Cleveland

State University’s Division ofUniversity Advancement asan executive-in-residence. Mr.Lafferty will be responsible for developing partnerships between the university andvarious stakeholders and forfostering relationships betweenCleveland State and the busi-ness community. He spentthe past 23 years with the

Cleveland office of the Jones Day law firm, wherehe was executive assistant to the managing partnerand office administrator.

New life: Premier Ventures LLC, an investorgroup based in Irvine, Calif., is the new owner ofthe mostly closed Rolling Acres Mall in Akronand plans to continue its conversion to a mixed-use property. Premier Ventures paid $3 millionfor the mall’s 600,000-square-foot common area.The seller was CB 225 LLC, an investor based inBeverly Hills, Calif., that acquired the propertyfor $1.7 million in July 2006.

Busy year: The Riverside Co. announced thepending sale of a company in Waco, Texas, forabout $150 million in a deal that is expected toclose by year’s end and should produce a returnof $3 for every dollar invested by the global private equity firm. The sale of The DwyerGroup to TZP Group LLC, a private equity firmin New York City, will be Riverside’s ninth sale,or exit, of the year. Riverside bought Dwyer, aholding company of seven franchise businessesfocused on residential and commercial services,for $54.5 million in 2003.

Compound interest:Preferred Compoundingof Barberton was purchased by a group consistingof some of its own executives and a Dallas-basedprivate equity firm, Wingate Partners. PreferredCompounding produces custom rubber com-pounds for molders, extruders and other manu-facturers and has about 200 employees. Termswere not disclosed. The sale marks the secondtime Watermill has bought and then sold a con-trolling interest in Preferred Compounding. Itwas the company’s majority owner from 1996 to1999, before buying the company again in 2001.

School funding: The Charter School GrowthFund, a national nonprofit venture capital fund,is putting $2 million into Breakthrough CharterSchools, a local charter management organiza-tion, to help open four new schools in Cleveland.By August 2011, Breakthrough plans to open twonew charter schools — Citizens LeadershipAcademy and Near West IntergenerationalSchool — with the support of the money, whichrepresents a combination of low-interest loansand grants to be fulfilled over the next four years.Two more schools are planned for the followingyear. Breakthrough runs four charter schools.

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


Excerpts from blog entries on CrainsCleveland.com.

BEST OF THE BLOGS

Learned Owl owner pleased as e-book venture takes flight■ Count Liz Murphy, owner of the LearnedOwl Book Shop in Hudson, among those eager to see what Google Inc. can do for thee-book world.

Google last week unveiled the GoogleeBookstore, which could shake up the waydigital books are sold. In a story that ran prior to the e-store’s unveiling, The WallStreet Journal said Google “hopes to upendthe existing e-book market by offering anopen, ‘read anywhere’ model that is differentfrom many competitors.”

Users are able to buy books directly fromGoogle or from multiple online retailers —including independent bookstores — andadd them to an online librarytied to a Google account.

Independent booksellers willbe able to install Google tech-nology on their web sites so theycan sell e-books and receive apercentage of revenue.

“If I don’t change with whatis going on, I am going to bebehind,” said Ms. Murphy, owner of theLearned Owl (a terrific store, by the way),who is eager to see what Google will enable.“People are getting e-books but they aren’tgetting them from me.”

They might be mocking, butat least they’re watching■ Parodies of LeBron James’ “What ShouldI Do?” Nike ad continue to outpace the realthing in online viewership, but that’s notsuch a bad thing, according to a short piecein The New York Times.

Visible Measures, an online video mea-surement company, reported the Nike ad

was viewed 5.19 million times in the 27 daysafter its release, while parodies were viewed5.86 million times. The company found asimilar pattern with a Tiger Woods Nike adaimed at rehabilitating the golfer’s image.

Ads like these are “a necessary step in therehabilitation of an athlete whose reputa-tion has been damaged,” said Matt Cutler,chief marketing officer of Visible Measures.

Nancy Mauro, a former associate creativedirector for McCann Erickson, told The Times,“Even if the benefits aren’t immediate forthe athlete, they’re designed to be, in time— and you can bet the creative team is benefiting from the tidal wave of interest.”

Manufacturers may shiftdown a notch after stellar ’10■ Peter Klein, senior portfolio manager atFifth Third Asset Management in Cleveland,

was among the experts quotedin a Reuters story that saidmanufacturers likely will face aslower-paced 2011 than theirrelatively robust 2010.

“Profit margins across thesector swelled this year ascompanies that cut costs to thebone during the brutal reces-

sion experienced a rebound in sales thathelped the Standard & Poor’s capital goodsindustry index to rise about 14%, more thantwice the gains of the broader U.S. stockmarket,” Reuters reported.

Analysts still expects profits to rise nextyear, but at a slower pace than in 2010. Asone analyst said, “The comparisons are go-ing to be getting a lot tougher going forward.”

Reuters said some investors see decliningmargins as inevitable, as companies willneed to add staff after cutting their opera-tions dramatically during the recession.“They’re going to have to start hiring people,so their personnel costs will start going up,”said Fifth Third’s Mr. Klein.

Lafferty

Proenza


Crain's Cleveland Business

Documents

Transcript of Crain's Cleveland Business