JANET CENTURY UHâ€™s QUIET GIANT

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HIGHER EDUCATIONColleges, universities weigh their security optionsin wake of Virginia Tech tragedy ■■ 5PLUS: WEBSTER’S WORD PEOPLE ■■ STUDENT BLOGS ■■ & MORE

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OGLEBAY SAYS BIDSTOP HARBINGER OFFER■ Oglebay Norton Co. has received multiple, all-cash buyoutproposals at prices that the company said are “significantly in excess” of the unsolicited, $31-a-share tender offer put forthby affiliates of Harbinger Capital Partners. Thomas O. Boucher Jr.,chairman of Oglebay’s board andof a special committee of independent directors that’s exploring alternatives to the Harbinger offer, said Oglebay officials “remain committed to concluding, as soon as practica-ble, the process that we began toensure our share-holders receivefull value for their investment.”However, Oglebay did cautionshareholders there can be no assurance a definitive agreementor transaction will result from theprocess. — Mark Dodosh

SEELEY SAVIDGE HEADS TO WESTLAKE■ Law firm Seeley, Savidge &Ebert has moved its offices toWestlake from downtown Cleveland. The firm now occupies13,000 square feet in the formerJamestown Building at 26600 Detroit Road; that structure hasbeen renamed the SS&E Profes-sional Building, law firm founderand attorney Glenn Seeley said.Seeley Savidge, which employs 15 attorneys, previously had beenin a 10,000-square-foot office inthe Fifth Third building in Cleve-land. — Shawn A. Turner

COUNCIL SET TO ACTON THEATER LOANS■ Cleveland City Council is movingto approve financial aid to restoretwo neighborhood theaters. LastTuesday, its Community and Economic Development Commit-tee approved Core City loans tohelp finance the renovation of theCapitol Theatre at East 65th Streetand Detroit Avenue, and the More-land Theatre at 11810 BuckeyeRoad. The $6.7 million Capitol project received a $1.5 millionloan, and the Moreland project received a $218,000 loan againsta total cost of $644,000. CityCouncil’s approval of the loans is expected today, Oct. 1. — Jay Miller

TORONTO FIRM SECURESMAJORITY STAKE IN IMAC■ A Toronto security and investigative services company hasacquired a majority interest inStrongsville-based InternationalManagement Assistance Corp.Terms of the deal with AFI International Group Inc. were notdisclosed. IMAC, as the Strongsvillecompany is commonly known, provides temporary staffing help tocompanies. IMAC employs about50 full-time workers in Strongsville.— Shawn A. Turner

LATENEWS

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Entire contents © 2007 by Crain Communications Inc.

Vol. 28, No. 39/$1.50 OCTOBER 1 - 7, 2007

TRIBE’S TIME■■ INDIANS QUICKLY REAPBENEFITS OF FIRST TRIPTO THE PLAYOFFS SINCE2001. PAGE 3

Case setssights oncapitalcampaign New president Snyderdoes spadework to prepfor first effort since ‘94By SHANNON [email protected]

Case Western Reserve Universityis laying the foundation to launch itsfirst capital campaign in more than adecade.

New Case Western Reserve president BarbaraSnyder said lastweek she’s unsureof the amount ofthe capital cam-paign or when itmight kick off,though she indi-cated it would be an “ambitious

but realistic goal.” Case’s last capitalcampaign was initiated under formerpresident Agnar Pytte and ended inJune 1994, when it raised $416 millionagainst a $350 million goal.

Before the school can begin askingpeople for money, though, it firstmust rebuild some bridges, Ms. Snyder said. Since her arrival July 1from Ohio State University, Ms. Snyder and other administratorshave been talking to alumni, donors,staff, faculty and students regardingtheir concerns and about where theuniversity is headed.

In particular, the university hasbeen doing some heavy public rela-tions work to repair relationshipsdamaged under former presidentDr. Edward Hundert, who pushed

UH’s QUIET GIANTHospital system’s dramatic financial turnaround

attributed to its soft-spoken leader

JANET CENTURY

University Hospitals president and CEO Thomas Zenty III made the system’s financial struggles his main goalupon arriving from Los Angeles’ famed Cedars-Sinai Medical Center in 2003. “First you’ve got to getyourself on solid financial footing and then you get other things done from there,” he says.

Story by SHANNON MORTLAND ■■ [email protected]

“I hope that everybodywho was a friend of ouruniversity still has passion for us.” – Barbara Snyder, president,Case Western Reserve University

See CASE Page 21

Snyder

six hospital executive largely shied away fromthe media and generally kept a low profile whilehe quietly nursed once-ailing UH back to fiscalhealth.

Last year, UH posted net income of $129million, a remarkable turnaround from the$125 million loss it recorded in 2002. Along

Thomas Zenty III has a theory: improvethe finances and everything else willfall into place.

See ZENTY Page 24

Mr. Zenty didn’t shout that theoryfrom the rooftops when he arrived in March2003 as president and CEO of University Hospitals from the famed Cedars-Sinai MedicalCenter in Los Angeles. The soft-spoken, six-foot-

CCLB 10-01-07 A 1 CCLB 9/28/2007 4:13 PM Page 1

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 1-7, 2007

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BY THE NUMBERSClassified ...............22-24Editorial ......................10Going Places ...............14Stocks.........................26Tax Liens.......................9

COMING NEXT WEEKGrowing pains

Name Park BuiltSuperman Ride of Steel Six Flags New England (Agawam, Mass.) 2000

Millennium Force Cedar Point 2000

Nitro Six Flags Great Adventure (Jackson, N.J.) 2001

Apollo’s Chariot Busch Gardens Williamsburg (Va.) 1999

Magnum XL-200 Cedar Point 1989

Expedition GeForce Holiday Park (Hassloch, Germany) 2001

Phantom’s Revenge Kennywood (West Mifflin, Pa.) 2001

Goliath Six Flags Over Georgia (Atlanta) 2006

Top Thrill Dragster Cedar Point 2003

Montu Busch Gardens Tampa (Fla.) 1999Source: Amusement Today

■ Calfee, Halter & Griswold LLP’s starting pay for associates this year is$110,000. A chart on 5 of theSept. 24 issue listed an incorrect figure.

WILD RIDES Cedar Point was named “Best Amusement Park in the World” by Amusement Today’s experts, and it had three of the top 10 steel roller coasters of 2007.

■ The Sept. 24 What’s New columnmisstated the makeup of Tuthill Coupling Group’s new Fire-Rated Coupling series. The series is availablein half-, three-quarters- and one-inchsteel and one-inch stainless steel.

For a small business, survivaloften is the name of the game.But how does a small businessowner decide when it’s timeto grow to the next level?Read next week’sSmall Businesssection for moreon growing a smallbusiness andstories of owners who decided to takethat next step.

CCLB 10-01-07 A 2 CCLB 9/28/2007 10:54 AM Page 1

Myers’ futuremay hold sale,merger withVirginia schoolBy SHANNON [email protected]

Myers University, with its recentfinancial turmoil, probably will notcontinue to exist in its current form.

The school’s president, RichardScaldini, said last week the university“likely” will be sold to or merged with the for-profit University ofNorthern Virginia at some point inthe future.

“We haven’t sat down and talkedabout whether we should merge,(but) somewhere down the line we’llprobably combine,” Dr. Scaldini said.“Is it possible we could not? Sure.”

David Lee, chairman of the boardof trustees for the University ofNorthern Virginia, said last week hecould not talk in detail about a futurerelationship with Myers. However,Mr. Lee said changes in the relation-ship between the two schools are expected to happen soon.

In May, UNVA Properties LLC gave$2 million to Myers University, whichwas on the brink of closing after 159years, Dr. Scaldini said. UNVA Prop-erties originally was created to buy anew main campus for the Universityof Northern Virginia, said Mr. Lee,who noted that UNVA Properties’primary owner also is a large stock-holder in the university.

Though Myers had “many poten-tial buyers” last spring when it wasoffered for sale after the school failedto raise at least $1.5 million neededto survive, UNVA Properties steppedup with the $2 million gift, Dr. Scaldinisaid.

“The best proposal we had was withUNVA Properties because every-thing stayed (as is), nobody lost anymoney or jobs,” Dr. Scaldini said.“It’s a very unusual arrangement, butit’s perfect for us because it got us aninfusion of capital immediately.”

The only caveat of UNVA Properties’gift was that Myers allow 15 peopleaffiliated with the University ofNorthern Virginia to sit on Myers’board of trustees, Dr. Scaldini said.Those 15 people now make up a majority of Myers’ 21-person board,which had open seats after someboard members left due to the school’sfinancial problems while the termsof others had expired, he said.

OCTOBER 1-7, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT THE WEEK IN QUOTES“The issues we werefacing were readilyapparent. (But) firstyou’ve got to get yourself on solid financial footing andthen you get otherthings from there.”— Thomas Zenty III, president, University Hospitals. Page One

“We believe that accessto clean, safe water willbecome increasinglychallenging in thecoming years, both indeveloped and devel-oping countries.”— Mike Milligan, president and CEO of Axel Johnson Inc.,the North American operatingarm of Kinetico Inc. owner Axel Johnson Group. Page 5

“Virginia Tech was forus in colleges whatColumbine was tothose in K-12 publicschools.”— Chief Michael Dugan, directorof safety and security, NotreDame College in South Euclid.Page 15

“Often what’s consid-ered mundane information — what a student ate in the dining hall, howmuch homework theyhad over the weekend,what having a room-mate is like — is whatprospective studentsfind most interesting.”— Susan Dileno, vice presidentof enrollment management,Baldwin-Wallace College. Page 17

Tribe fans rally for postseason runBy JOHN [email protected]

You’d think the Indians had neverbeen here before.

Sure, it’s been six years since theylast reached the playoffs. But they’vestill played October baseball in six ofthe last 12 seasons, and for fans who goback a few decades, a six-season gaphardly seems longer than a seventh-inning stretch.

Fans, slow to embrace the team in person despite its early-season success, shot the average per-gameattendance up by more than one-third to 33,288 after the All-StarBreak. And of the team’s 11 selloutgames, 10 came in the second half ofthe season.

Team president Paul Dolan saidseveral theories exist about why fansheld out awhile; they include thelackluster local economy and the

Cavaliers’ run last spring to the NBAFinals. He also cited “the hangover”from the Tribe’s 2006 season, whenthe team went 78-84 after barelymissing the playoffs the previousyear.

“We disappointed the fans,” Mr.Dolan said. “They came into it expecting us to be the kind of team weare now. We had a credibility issue.”

Given the recent climb in atten-dance, the postseason demand fortickets isn’t altogether surprising,though the level of that interest didcatch team officials a bit off guard.

For the division series, the Indianshad about 20,000 tickets available

per game once season ticket holders,partial plan holders and Major LeagueBaseball set-asides were satisfied. In a new-to-the-Tribe move, thosetickets were distributed by randomdraw.

“We had over 320,000 individualsenter the lottery,” said Vic Gregovits,the Indians’ senior vice president ofsales and marketing. “I knew we’dget a couple thousand, but it was anoverwhelming response by the fans.”The division series home games wereannounced as sold out last Friday,Sept. 28.

Mr. Gregovits also noted that theteam has taken deposits on more

than 2,600 new season ticket ordersfor 2008, sparked by the chance tobuy this year’s playoff tickets as partof the deal. That’s more than triplethe 800 pre-orders the Indianspulled in during 2005’s late-seasonsurge.

Gimme that Tribe stuffWhile not all fans will be lucky

enough to wind up with tickets tothe games, droves of them are gearing up with team merchandise.

When the team clinched theAmerican League Central Divisiontitle on Sept. 23, the Indians’ six

Despite lack of interest early on, demandfor playoff tickets, merchandise frenzied

DIGITAL DUPLICATIONeBlueprint firming up plans to expand electronic offerings

into more geographic markets, quadruple businessBy DAVID [email protected]

When executives at eBlueprintHoldings LLC earlier this yearbegan considering strategies forthe Cleveland reprographics

company to quadruple its business in thenext four years, they agreed that the blue-print for future growth should be digital.

Acting on a successful formula it honed inCleveland of converting customers’ paperblueprints to an electronic format, eBlue-print plans to expand into other geographicmarkets by acquiring solid reprographicscompanies and converting their computersystems so that customers’ blueprints canbe managed electronically.

Andrew Ziegler, CEO of eBlueprint, saidthe final piece of the growth plan was put inplace last month when eBlueprint boardmember Charles Birchall Jr. was hired aschief financial officer. Mr. Birchall is theformer president and co-founder of Cleve-land-based AxioMed Spine Corp., a makerof spinal devices.

To grow outside of Cleveland, Mr. Zieglersaid eBlueprint needed a CFO with experi-ence working with early-stage, technology-focused companies. He said Mr. Birchall’sability to cultivate private equity and insti-tutional sources, as well as his sales andmarketing savvy related to new technology,made him a good fit for the executive suite.

“eBlueprint has had an elegant solution at every turn.” – Monica Melendez, business systems manager, Marriott International Inc.

MARC GOLUB

CEO Andrew Ziegler (right) hired CFO Charles Birchall Jr. (left) to help guide eBlueprint’s growth outside Cleve-land. eBlueprint is a reprographics company specializing in converting paper blueprints into an electronic format.

See DIGITAL Page 25

See TRIBE Page 21

See MYERS Page 8


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Kinetico exec going globalto increase growth flowBy DAVID [email protected]

After building a reputation for innovative engineering and buildinga base of loyal customers over 30-plusyears, Kinetico Inc. of Newbury faceda dilemma: How does a business thathas developed successful growthstrategies at home sell itself globally?

Enter Shamus Hurley, a 46-year-old Canadian who has brought anoutsider’s perspective to the job oftaking the manufacturer of watertreatment systems “to the next level,”as he puts it, in his new role as president and CEO of Kinetico.

Mr. Hurley came to Kinetico in August after serving as president ofBosch Security Systems Inc., an $800million division of the German manu-facturer Robert Bosch GmbH. Hesucceeded Kelly Tompkins, Kinetico’spresident since 1999 and a 30-yearveteran of the company, which wasbought in June 2006 by diversifiedmanufacturer Axel Johnson Groupof Sweden.

Mr. Hurley, a 20-year veteran of thesecurity systems business, said he wasenticed by the prospect of running themaker of water filtering and softeningequipment for residential, commercialand municipal use after he learnedof the position this summer whenAxel was conducting a national search.

Though he has been on the job justa couple months, Mr. Hurley alreadyhas set as part of Kinetico’s strategicplan a thorough assessment of targetmarkets overseas. He said once thedue diligence is done, Kinetico willdetermine the best means to drivegrowth, whether it’s through acqui-sitions, joint ventures or direct marketing campaigns.

Mr. Hurley said opportunities toexpand Kinetico’s presence in regions such as Latin America andthe Asia Pacific region are bountifulbecause of water quality issues in

those markets. While Kinetico doeshave customers in those areas, “Weare not in those countries in a way Iwould call critical mass,” he said.

Mr. Hurley praised the company’sproduct lines as well as the technicaland engineering knowhow that hasmade Kinetico an industry leader.However, he said he hopes to bolsterKinetico’s “curb appeal” to prospec-tive customers by making its namemore recognized inside as well asoutside North America.

An effective mechanism forspreading the Kinetico name closerto home is through the company’sbase of 260 dealers in North America,said Mr. Hurley, who holds a bache-lor’s degree in physics from ConcordiaUniversity in Montreal. Indeed, hecalls Kinetico’s dealers the “lifeblood”of the company.

Dealing with dealersMaking Kinetico’s solid dealer

network even stronger is one reasonMr. Hurley was hired, said Mike Milligan, president and CEO of AxelJohnson Inc., the North Americanoperating arm of Axel Johnson Group.

“Shamus brings with him a greatdeal of direct experience in workingwith and building strong dealer organizations,” Mr. Milligan said.“While at both Bosch and Honeywell,Shamus led the development of someof the best independent dealer busi-nesses in the security industry.” Mr.Milligan was referring in part to the14 years Mr. Hurley spent with Honey-well International Inc., where his lastjob was heading up North Americansales for its security and fire division.

Mr. Hurley also wants to review howKinetico can streamline its productofferings. He said the company hasearned a reputation for custom-engineered water treatment and soft-ening systems. He wants to exploremaking Kinetico’s products lessunique and more adaptable.

For example, Mr. Hurley said producing a water-filtration unit tofit on any typical water faucet is ultimately more marketable than acustom water filtering system thatonly can fit in a basement of a home.The company has the capability todo both. However, Mr. Hurley saidhe wants to explore how additional“plug and play” products can add tothe company’s profitability.

Privately owned Kinetico doesn’tdisclose its sales or profits. However,by maintaining the double-digit growththat the company has experienced ineach of the last few years, Mr. Hurleypredicts Kinetico will reach $500 million in sales by 2013.

New boss, new teamsTo learn more about Kinetico’s

clientele, Mr. Hurley has met withmajor customers “to make myselfmore visible.”

He has made himself more visibleat Kinetico’s Newbury headquartersas well. Of Kinetico’s 400 employees,250 work in Newbury. The companyalso operates plants in Canada, Denmark, France and the UK.

While the company’s work forceremains “tight-knit,” subtle changeshave occurred since Mr. Hurley arrived in August, said G. VincentSlusarz, who was named chief oper-ating officer last December.

Mr. Slusarz, who has been with Kinetico since 1983, said while theculture at Kinetico has been largelyunaffected, new teams drawn fromdifferent company segments — such as research and development, marketing and manufacturing — nowmeet routinely to discuss progress in

their respective departments. “One change has been instilling

more discipline as we form and exe-cute our plans,” he said. But Kinetico’score competencies remain the same,which attracted Axel Johnson to Kinetico as the Swedish company

looked to grow its water treatmentportfolio, Mr. Milligan said.

“We believe that access to clean,safe water will become increasinglychallenging in the coming years,both in developed and developingcountries,” Mr. Milligan said. ■

MARC GOLUB

President and CEO Shamus Hurley came to Kinetico Inc. in August after servingas president of Bosch Security Systems Inc.



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Clinic to use medical summit to pump up cardiology center By CHUCK [email protected]

Cardiology is a timely theme for this week’s Medical InnovationSummit.

The Cleveland Clinic and regionalbusiness recruitment group TeamNEO aim to use the summit to promote the hospital’s yet-to-be-built Global Cardiovascular Innova-tion Center, and on top of that TeamNEO is about to launch its own program to bring more cardiovascu-lar companies to the region.

The three-day summit, which

starts today, Oct. 1, is slated to drawbig names from throughout the cardiovascular field. The two organi-zations plan to inform as many of them as possible about the Cardio-vascular Innovation Center, saidChris Coburn, executive director ofCCF Innovations, the hospital’s technology commercialization arm.

The Clinic always uses the annualsummit to establish relationshipswith companies and investors fromoutside the region, but the plans forthe cardiovascular center shouldmake it easier to get their attention,Mr. Coburn said.

“We have more resources toshow people how Cleveland can deliver a competitive advantage fortheir companies,” he said.

Mr. Coburn said this year’s themewas chosen specifically to draw attention to the Clinic’s planned,60,000-square-foot research centerthat would be used to develop waysto prevent, diagnose and treat heartdisease. The center is expected to befinished in early-2009.

Team NEO has had a small presence at the summit in the past.However, this year it will be focusedon setting up one-on-one meetings

Targeted TeamTeam NEO’s goal for this year’s

summit goes beyond finding compa-nies for the cardiovascular center.The organization in 2008 plans tostart marketing the region to compa-nies in various industries that areconsidered strengths in NortheastOhio, which will be the first time thegroup has targeted its marketing efforts toward particular industries.

The summit marks the unofficialbeginning of the group’s efforts totarget cardiovascular businesses, butstarting in 2008 it will try other waysto woo them to Northeast Ohio, saidCarin Rockind, vice president ofmarketing and communications forTeam NEO.

The group has not chosen whatmethods it might use, but possibili-ties include other conferences, advertisements in trade publicationsand sales calls with researchersworking on new technologies, Ms.Rockind said. The organizationwants to attract divisions of largebusinesses or small companies withgrowth potential.

Team NEO will pick one or twoother industries to target, Ms.Rockind said. Among the possibili-ties are polymers, financial services,advanced energy and fuel cells.

“There are probably six to eight industries that we could have a verytargeted, proactive approach with ifwe had all the money in the world,”Ms. Rockind said.

The summit’s cardiology themewill serve Team NEO’s new programwell, Mr. Sudow said. “It’s a verygood tie-in for the GCIC and thelaunch of the program,” he said.

Previous summits have helped theClinic establish relationships withcompanies and investors from outsidethe region, Mr. Coburn said.

At last year’s summit, for instance,Clinic officials met a principal of amajor venture capital firm and began conversations about a dealthat is expected to close this year,Mr. Coburn said. However, he declined to disclose more detailsabout the arrangement.

This year’s summit is expected todraw a record 900 people. It will fea-ture a panel led by CNN’s Larry King,two live surgeries and several CEOspeakers, including Bill Hawkins ofMinneapolis-based medical devicecompany Medtronic Inc., Sidney Tau-rel of Indianapolis-based pharmaceu-tical company Eli Lilly and Co., andGeorge Buckley of St. Paul-based diver-sified technology company 3M. ■

with cardiovascular companies thatcould move to the cardiovascular center or some other location inNortheast Ohio, with companies thathave technologies the center couldhelp commercialize, and with peoplewho have multiple contacts in the industry, said Tom Sudow, Team NEOvice president of attraction.

“Our goal is to spread the wordand to continue to inform people onwhat this has to offer,” Mr. Sudowsaid.

Team NEO and the Clinic haveteamed up to find about 20 new andearly-stage cardiology technologycompanies to take residence in the cardiovascular center, said Mr. Sudow, who joined Team NEO inSeptember to lead the effort to develop the center. The Clinic lastDecember received a $60 millionThird Frontier grant from the state tohelp pay for the $250 million center.


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Accounting practice split grows testy over spoilsBy JAY [email protected]

A local accounting practice issplitting up, and it’s turning into amessy divorce.

Litigation filed Sept. 19 by Hausser+Taylor LLC describes how agroup of two dozen certified publicaccountants is resisting a takeover byRSM McGladrey Inc., a larger, nationalorganization Hausser+Taylor has beenaffiliated with since 2005.

It’s likely the dispute will be resolved by mediation or arbitration.But the request for a restraining order or an injunction filed in U.S.District Court in Cleveland argues thatHausser+Taylor needs immediatecourt action to protect the confiden-tiality its accountants have with theirauditing clients. The concern arisesbecause RSM and Hausser+Tayloroperate as one firm with shared offices at North Point Tower indowntown Cleveland.

Judge Christopher Boyko on Sept.21 denied the request for a tempo-rary restraining order, but the caseremains alive and could lead to apermanent injunction.

Hausser+Taylor partner PeterChudyk describes the broader disputeas stemming from his partners’ desire to avoid becoming involved ina far-flung national partnership.

“They (RSM McGladrey officials)wanted us to be taken over by a CPAfirm called McGladrey & Pullen, andwe refused because we wanted tostay locally owned and managed,”Mr. Chudyk said.

McGladrey & Pullen is affiliatedwith RSM McGladrey, though it, likeHausser+Taylor, technically is ownedby its CPA partners.

The issue in the lawsuit is what theHausser+Taylor CPAs can take with

them in the split — the firm’s nameand client list prominent among thespoils.

RSM McGladrey, which is ownedby tax preparation giant H&R BlockInc. of Kansas City, contends in courtdocuments that it should retain theclient roster. It gave notice to theHausser+Taylor partners on Sept. 19that their relationship with RSMMcGladrey would end in 30 days.

“Beginning Oct. 19, McGladrey & Pullen will be in a position to provide attest services to clients thatwish to engage McGladrey & Pullen,”said RSM spokeswoman Betsy Wein-berger. “The firm is committed tobuilding a strong practice in Ohio.”

If the names, relationships and

terminology are confusing, it’s because of the way the accountingbusiness is run.

Outwardly, the two firms appearto be a single operation. They shareoffice space, personnel and clients.The Hausser+Taylor partners receivepaychecks from RSM.

But Securities and Exchange Com-mission regulations and accountingprofessional ethics require firms thataudit the accuracy and fairness of financial statements — called “attest”work — to be owned and operated bycertified public accountants, saidDonald B. Scholl, a West Chester, Pa.,consultant to accounting firms.

Large national accounting corpora-tions such as RSM can sidestep that

requirement with what the professioncalls an “alternative practice struc-ture.”

That structure segregates attestwork from the rest of the accountingpractice with something akin to theChinese wall that banking firms use toseparate investing activities from theirbrokerage businesses.

Mr. Chudyk said 24 Hausser+TaylorCPA partners are responsible for theattest work and 21 of those plan tostick with Hausser+Taylor. Abouthalf of RSM’s Ohio employees workat times on attest work, according toMs. Weinberger, who said RSM has200 employees in five Ohio offices.RSM McGladrey contends in courtdocuments it owns Hausser+Taylor’s

attest client list and that Hausser+Taylor CPAs are bound by a non-compete agreement that prohibitsthem from taking on work from RSMclients for 12 months.

In a telephone interview, Mr.Scholl, the consultant, at firstthought RSM McGladrey had thestronger position in the dispute because he believed the purchase of Hausser+Taylor’s attest workwould have been a key part of anydeal with RSM McGladrey. But Mr.Scholl said the existence of the non-compete and arbitration clauses inthe agreement gave him pause because their presence suggestsHausser+Taylor continued to existas a legal entity. ■

A powered forwardLeBron listed in publications’

100 influential sports people

As if LeBron James needed morehonors, he has been named one ofthe most powerful people in sportsby BusinessWeek and ESPN TheMagazine.

The publications joined forces torank the 100 most influential peoplein the sports world.

Mr. James, the Cleveland Cava-liers’ star forward and “SaturdayNight Live” host over the weekend,ranked No. 19 on the list.

Three executives from IMG, thesports and entertainment marketingpowerhouse that’s co-headquarteredin Cleveland, also made the list:chairman/CEO Theodore Forstmann(No. 26); George Pyne, president ofIMG Sports and Entertainment (No.59); and Mark Steinberg, seniorvice president and global managingdirector of golf (No. 72).

BusinessWeek and ESPN TheMagazine are quite taken by thepower of a sports commissioner’soffice, as three of the top five spotswent to commissioners of majorsports leagues. No. 1 was NFLchief Roger Goodell, while NBAcommissioner David Stern was No.3 and Major League Baseball bossBud Selig was No. 5.

Rounding out the top five weregolfer (and IMG client) Tiger Woodsat No. 2 and George Bodenheimer,the president of ESPN and ABCSports, at No. 4.

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At present, Myers and the Univer-sity of Northern Virginia, which isbased in Manassas, Va., are sharinginformation about their courses andmajors as Myers continues to try toturn itself around, said Joyce Banjac,Myers vice president of academic affairs and dean of the Charles R.McDonald School of Business.

Though she doesn’t expect bigchanges in academic programs, Ms.Banjac said each school has programsthe other does not. For example,Northern Virginia offers master’s degrees in accountancy, finance andproject management, she said.

But for now, Dr. Scaldini said, Myersand Northern Virginia would not be combining programs and that

Myers would continue operations asusual, spending much of its time trying to boost enrollment.

Myers only has 531 students,which is a little more than half itsusual fall enrollment and is notenough to sustain the university, Dr.Scaldini said. Enrollment in fall 2006was about 900 students, a figure thatfell during the last academic yearamid the financial difficulty and uncertainty that plagued the univer-sity, he said.

A large graduating class lastspring, media coverage of Myers’problems and a lack of advertisingalso contributed to the enrollmentdecline, Dr. Scaldini said. Myers wasforced to forego advertising last winter and spring because it didn’t

have the money to pay for it, he said.The $2 million cash infusion from

UNVA Properties enabled Myers toresume advertising in mid-July, butit wasn’t fast enough to provide asignificant enrollment boost, Dr.Scaldini said.

Ms. Banjac said Myers had to cancel30 classes it had planned for this fallbecause there weren’t enough stu-dents enrolled. The winter courseschedule also will not include asmany courses as last winter, she said.

‘Working our way back’Dr. Scaldini said a representative

from the Ohio Board of Regents visitsMyers about once a month to monitorprogress and to serve on the team ofstaffers creating a strategic plan for

the university. The monitor, he said,is there to make sure Myers followsregulatory measures and doesn’t tryto slip into a secret merger.

Dr. Scaldini said there’s no chanceof a secret merger. Indeed, any saleor merger that Myers is consideringwill need to be reported to Ohio Attorney General Marc Dann’s office,which then would review the sale or merger, a spokeswoman for the attorney general said.

Prior to the $2 million donation,there was no link between Myersand the University of Northern Virginia, which has three locationsin Virginia as well as locations in theCzech Republic, London, Hong Kongand Turkey. The latter school hasbeen in existence since 1998.

Myers: School frank with students about financesDr. Scaldini said Myers is being

honest with current and potentialstudents when asked about its finances.He tells them about the $2 millioncash infusion and that they will receive federal financial aid on time.

In July 2006, the U.S. Departmentof Education stopped issuing finan-cial aid checks to Myers’ studentsuntil Myers posted a $1.2 million letter of credit that ensured that theuniversity would not close mid-semester. Myers’ letter of credit ulti-mately was backed by local banks, theCuyahoga County commissionersand local businessmen Sam Miller,Carl Glickman and Albert Ratner.

Dr. Scaldini tells students that theletter of credit and the $2 millionfrom UNVA Properties put the university back on track to financialimprovement.

“Are we out of the woods? No, butwe are working our way back,” hesaid. ■

continued from PAGE 3

TransDigm sales soarThe aircraft parts supplier

pulls most of its revenues fromaftermarket biz

A surge in orders for airplanemaker Boeing is benefiting Trans-Digm Group, the Cleveland-basedaircraft parts supplier, according toa Sept. 24 story from Investor’sBusiness Daily.

TransDigm’s parts fly in more than55,000 commercial, military andcorporate aircraft, analyst CarterCopeland of Lehman Bros. told thenewspaper. TransDigm’s portfolioincludes throttle parts, fuel-line connectors, cockpit instruments, ignition systems, gear pumps, actuators, latches and a host ofother critical aerospace equipment.

Its products generate a stablestream of aftermarket revenue thattypically lasts the length of a plane’slife, Mr. Copeland said. This is dueto the highly engineered nature ofits products and the long servicelife of the planes.

“As a result, more than 60% ofTransDigm revenue comes from thehigher-margin aftermarket business.The company’s parts follow the razor blade model,” the newspaperreported. “That means it sells anaircraft part at a modest price, barelyeven making a profit. When the partneeds to be replaced, TransDigm willresell that part for a higher profit.”

For example, the worldwide fleetof commercial planes is about 16,000and each requires four turbine engineigniters. TransDigm makes the igniters, which need to be replacedevery six months. That results in thecompany replacing 128,000 ignitersevery year, Mr. Copeland said.

Once a part is in an aircraft, it’slocked in as a replacement for therest of the plane’s life.

“That’s great business, and that’sjust for one of its products in itsvast portfolio,” Mr. Copeland said.“Its aftermarket business is solidbecause in some cases a plane’slife can last upwards of 40 yearson some models.”

TransDigm’s aftermarket salesresult in some of the best marginsin the aircraft parts industry, according to the newspaper.

“In spite of ongoing Boeing 787and other development expenses,as well as the slightly dilutive impact of our Aviation Technologiesacquisition, we were able to main-tain our margin at approximately47%,” CEO Nicholas Howley saidduring a third-quarter conferencecall with analysts.

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

LIENS RELEASEDAristocrat Lakewood Nursing Home Corp.26612 Center Ridge Road, WestlakeID: 34-1515554Date filed: March 16, 2007Date released: May 21, 2007Type: Employer’s withholdingAmount: $55,700

Asian American Martial Art Supply Inc.31399 Lorain Road, North OlmstedID: 34-1866413Date filed: May 10, 2005Date released: May 14, 2007Type: Employer’s withholdingAmount: $17,750

Exhaust Shops Inc.975 E. 185th St., ClevelandID: 34-1599638Date filed: Nov. 18, 1997Date released: May 21, 2007Type: Employer’s withholding, unemploymentAmount: $15,039

Graham Management Inc.33670 Aurora Road, SolonID: 34-1649135Date filed: Dec. 4, 2006Date released: May 7, 2007Type: Employer’s withholdingAmount: $5,675

Ko-Am Enterprises Inc.16905 Chagrin Blvd., Shaker HeightsID: 34-1850351Date filed: May 18, 2004Date released: May 7, 2007Type: Employer’s withholdingAmount: $22,211

Laramee Interiors Co.5242 Maple Springs Drive, Chagrin FallsID: 34-1779474Date filed: May 18, 1998Date released: May 2, 2007Type: Employer’s withholdingAmount: $5,027

Morehouse Communications Inc.16496 Falmouth Drive, StrongsvilleID: 34-1689441Date filed: Sept. 30, 2002Date released: May 14, 2007Type: Employer’s withholdingAmount: $16,610

Northeast Advisors Inc.14414 Detroit Ave., Suite 204, LakewoodID: 34-1955126Date filed: June 22, 2005Date released: May 14, 2007Type: Employer’s withholdingAmount: $15,795

1 Dollar Inc.21674 Libby Road, Maple HeightsID: 34-1715791Date filed: July 5, 2006Date released: May 21, 2007Type: Failure to file complete returnAmount: $19,149

Outdoor Lighting Perspectives of Cleveland Inc.6775 Industrial Parkway, North OlmstedID: 36-4343811Date filed: Jan. 18, 2007Date released: May 7, 2007Type: Employer’s withholdingAmount: $5,732

Posture Support Manufacturing Inc.29325 Edgedale, ClevelandID: 34-1257926Date filed: June 15, 1999Date released: May 10, 2007Type: Employer’s withholdingAmount: $14,754

Pres Inc.925 Bassett Road, Suite A, WestlakeID: 34-1901836Date filed: Dec. 20, 2006Date released: May 8, 2007

Type: Employer’s withholdingAmount: $15,657

Pro 1 Construction LLC810 Greengate Oval, Sagamore HillsID: 34-1960177Date filed: Sept. 18, 2006Date released: May 10, 2007Type: Employer’s withholdingAmount: $15,738

RJW Inc.P.O. Box 6931, ClevelandID: 34-1357937Date filed: Dec. 18, 2006Date released: May 21, 2007Type: Employer’s withholdingAmount: $16,509

Republic Services of Ohio Hauling LLC3980 Jennings Road, ClevelandID: 65-0872369Date filed: Dec. 5, 2001Date released: May 10, 2007Type: NAAmount: $22,504

Rheumatologists Inc.29099 Health Campus Drive, WestlakeID: 34-1084616Date filed: March 7, 2007Date released: May 21, 2007Type: Employer’s withholdingAmount: $21,262

Richcreek Bailey Rehabilitation Services Inc.6321 St. Clair Ave., ClevelandID: 34-1796452Date filed: July 5, 2000Date released: May 21, 2007Type: Employer’s withholdingAmount: $21,772

TLC Construction Co.21200 St. Clair Ave., Suite B8, EuclidID: 03-0511756Date filed: March 9, 2004Date released: May 22, 2007 Type: Employer’s withholdingAmount: $9,859


Leaders at every company and organization across NortheastOhio are rethinking their roles andbest practices these days, so it

should surprise no one that a similar exercise is changing the shape of GreaterCleveland’s United Way.

And once implemented, the changes— while necessary — are likelyto sadden and perhaps angermore than a few people.

Our United Way campaign isone of the oldest, and tradition-ally most generous per capita, inthe nation. But the fact is thatthere are fewer large companiesin Northeast Ohio, and the challenge of meeting the annualfundraising goal has been stern.Some things had to change,which probably will mean less funds forsome organizations in the future; othersmay lose their United Way dollars alto-gether.

After a three-year analysis of the UnitedWay effort here, it has been decided thatfunds will be raised for (and distributed to)the strongest and best-organized agencies

that serve one or more of 21 consumergroups in the region.

“We have been doing a good job ofpulling people floating down the riverout,” United Way board chair HenryMeyer was quoted as saying about thechanges. “Now we’re going to try to go upstream and prevent them from

falling in.”Cleveland’s United Way is

known nationally as a respons-ibly run organization that neveroverspends on its own resources,and this latest change is anotherexample of that good steward-ship and management. I hope itconvinces our readers to be asgenerous as they can during thisyear’s campaign.

* * * * WHILE SOME MAY AGREE with

Cleveland City Council President MartinSweeney’s support of trimming the sizeof the governing body, they won’t behappy with the size of the cut.

Mr. Sweeney, who continues to repre-sent a ward while acting as council president, has said publicly that the body

should be trimmed to 17 members from21 to reflect the city’s population loss.The problem is that compared to peercities, that reduction doesn’t come closeto what’s going on in other cities.

Detroit has a population more thantwice that of Cleveland, and it has onlynine council members, elected citywide.Columbus has half again as many people, and it only has seven councilmembers, elected citywide.

The assumption is that fewer members,all elected citywide, are freer to make decisions that best serve the entire city,rather than getting bogged down in street-by-street needs and problems in individual wards.

That all makes perfect sense, but itwould hinge on Mayor Frank Jacksonensuring that city departments run right,and that services are properly andpromptly delivered to the citizens of hiscity.

Wouldn’t it be refreshing to have council members who think about thebroadest well-being of this city, rather thantheir own paychecks and the challenges intheir wards? ■


Short, sweetT

he auto industry’s version of Armageddonlasted less than two days. But unlike theepic biblical battle where good triumphsover evil, American automakers and the

United Auto Workers both should come out of theunion’s brief strike last week against General MotorsCorp. better off for the encounter.

Details of the tentative contract between GM andthe UAW were limited in the hours just after the twosides announced an agreement last Wednesdaymorning. However, GM did reveal that the pact callsfor the establishment of an independent retireehealth care trust that would take off the company’sback a huge health care obligation estimated at morethan $50 billion.

In setting up a trust fund that would be managedby its union, GM followed the lead of Goodyear Tire& Rubber Co., which pioneered the idea late lastyear during its contract talks with the United Steelworkers. Goodyear helped ensure its long-termcompetitiveness by removing more than $1 billionin retiree health care obligations from its books. Theneed to be freed of those obligations was exponen-tially greater at GM; it has been hemorrhaging redink because of labor costs that are $25 to $30 anhour higher than those costs at the nonunion U.S.operations of overseas rivals such as Toyota andHonda.

GM can be grateful that it was Goodyear, and notitself, that had to absorb a three-month strike to arrive at a contract that contained a company-financed but union-run retiree health care fund.GM now must hope UAW members ratify the pact.

As for the UAW, its president, Ron Gettelfinger,must be applauded for his pragmatic approach tothese contract negotiations. GM, Ford and Chryslerall have been driving down a road destined to leadto bankruptcy because their cost structures havemade it impossible to sustain profitable operationsin all but the best of economic times. The deal Mr.Gettelfinger struck with GM holds the promise ofstabilizing the automaker’s operations and securingthe jobs of the lion’s share of his members for yearsto come. It also should serve as the pattern for Fordand Chrysler to follow, and so benefit Detroit’s BigThree as a whole.

In the months leading up to these contract talks,we pleaded with GM to stand firm and to absorb astrike if that’s what it took to atone for past negotia-tions where it opted for labor peace and caved in towage and benefit demands that it really couldn’tafford. It appears GM did just that.

Indeed, a statement GM issued last Wednesdayquotes CEO Rick Wagoner as saying the new agree-ment “helps us close the fundamental competitivegaps that exist in our business” while also allowingthe company to maintain what he termed “a strongmanufacturing presence in the United States.” Ifthose statements prove true, the future should bebrighter for GM and its production workers.

We urge GM’s rank-and-file to approve this historic agreement not just for their good, but forthe good of a domestic auto industry that we believecan give its foreign rivals a run for their marketshare once a reasonable cost structure is in place.

COMMENTARY

BRIANTUCKER

United Way wisely pursues new way

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

LETTERS

Hats off to tech pioneer Jim Cookinham■ With the recent announcement of hisretirement at the end of the year fromthe Council of Smaller Enterprises, Icannot allow Jim Cookinham to leavethe stage without publicly thanking himfor his pioneering work.

Singlehandily, Jim fired up the passion of the region, and the peoplewho followed him, with the vision thata tech-based economy could emergeand prosper in Northeast Ohio. Whenall the naysayers said it couldn’t, Jimboldly and continually said it could.

While the Youngstown Business Incu-bator for which I work preceded the creation by Jim in 1998 of the NortheastOhio Software Association (NEOSA), wenever would have refocused our missionin 2001 toward software application development companies if there had not

been a Jim Cookinham cheering us on.I can’t even imagine what the eco-

nomic landscape of Northeast Ohiowould look like today if Jim hadn’tgrabbed the microphone and said, “People, we can do this!”

I sincerely feel that Jim Cookinhamcarved out the space that so many of uswork in today. And I sincerely feel that the Youngstown Business Incubator, JumpStart, GLIDE, MAGNET, BioEnter-prise and the Akron Global Business Accelerator would not be what they aretoday had Jim not paved the road aheadfor all of us.

Jim Cookinham “got” Cleveland+long before the term was ever coined.And as a region, we will be forever indebt to him.

Best of luck to you, Jim. And thank

you so much for so many years of outstanding service and wonderful accomplishments.

Jim CosslerChief evangelistYoungstown Business Incubator

HSA a great deal for teachers■ James Snyder’s Sept. 10 PersonalView on health savings account plansfor schools is timely.

HSA plans have lower insuranceoverhead than traditional coverage and reduce unneeded utilization of medicalcare. An additional but generally unre-ported benefit of HSAs occurs over time. In any given year, around 10% of individuals account for 80% of health

See LETTERS Page 11


though workers get a discount ontheir health care copayments if theydo,” according to The Journal.

Ms. Irvin said Hess “has also intro-duced on-site wellness and other programs that together have helped toreduce the company’s current health-care expenditures to about half of theirhistorical trend. That, in turn, hashelped Hess keep employees’ share ofhealth-plan premiums level for thepast three years.”

Airline’s expansion hasCleveland flying high■ TheStreet.com declared Cleveland“a winner in the Rust Belt hub sweep-stakes” for landing a big expansion byContinental Airlines.

“Over the past 15 years, competinghubs in Columbus and Dayton, Ohio,along with one in Pittsburgh, have disappeared,” TheStreet.com reporterTed Reed wrote in an analysis of Continental’s decision.

Cleveland Hopkins International

expenses. HSAs are a great deal forthe healthy, but critics argue thatthe sick will not accumulate signif-icant unused funds over time. Thisignores the fact that medical expenditures become less persis-tent over the years.

Academic research on long-runmedical claims suggests that over a 35-year work life, around 55% of individuals account for 80% of expenditures.

In other words, it’s not the same

people with big expenses everyyear.

This occurs for two obvious rea-sons. Some pass away and others getbetter. Simulations of HSAs that takethis into account show that 95%-plusof those with HSAs over a work lifewill have substantial unused funds.These numbers become significantly

higher when the funds are invested. How many current health plans

for teachers (or anyone else) givesthe vast majority of them a largeamount of money when they retire?

Michael Bond, Ph.D.Department of FinanceCleveland State University


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WRITE TO USSend your letters to: Mark Dodosh, editor, Crain’s Cleveland Business,700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230e-mail: [email protected]

THE BIG ISSUEShould Ohio suspend the death penalty as the American Bar Association has suggested?

JONAS ALLENClevelandYes, they should. This system is predicated on finances (of those convicted) most of thetime.

TOM HUTCHERSONClevelandI think it’s all about money.I think the public defendersare compensated well, orthey wouldn’t be doing it.

NELSON BUTLERClevelandI think it’s a good idea tosuspend executions of alltypes.

SCOTT BERRYChagrin FallsI’m for the death penaltyas long as the evidence issolid. I do think theyshould be done quicker.

continued from PAGE 10

LETTERS

CHOICE BITS

➤➤➤➤ Let us know what you think. Vote in our online poll at www.CrainsCleveland.com

Excerpts from recent Editor’s Choice blog entries on CrainsCleveland.com.

These people actuallylike being audited■ The Wall Street Journal on Sept. 25used the experience of a PortageCounty company as an example ofhow employers and health insurers increasingly “are turning to servicesthat essentially audit an employee’shealth care and look for ways to bothimprove outcomes and save money.”

Critics, though, “contend that someof these programs intrude into the private relationship between patientsand their doctors, and that they addyet another layer of bureaucracy, whilesaving money mostly by denying orswitching specific drugs and proce-dures,” according to the newspaper.

Jamie Rochowiak, a 31-year-oldmail handler at Hess Print SolutionsInc. in Brimfield, in Portage County, had a good experience witha health audit.

She told The Journal that she hadsuffered several ministrokes but still couldn’t quit smoking. Ms. Rochowiak says a care coordinatorfrom Quantum Health Inc. inter-vened to get her employer’s healthplan to cover an antismoking drug after her claim initially was denied.

“They got me approved for a prescription that I really needed thatwasn’t covered by my insurance. Theyhave helped me out tremendously,”she said.

Stacey Irvin, vice president of human resources at Hess, “says employees were initially reluctant toparticipate in the Quantum optionalcare-management program, even

Airport “has long been a second-tierhub,” according to Mr. Reed. “Withabout 11.3 million passengers in 2006, it was the country’s 33rd-largest airport. Memphis, Tenn., was the onlyhub with less traffic.”

But now, Continental wants to expand its Cleveland capacity by40% over two years. By June 2008, itwill offer 300 daily departures to 100destinations, up from 242 departuresto 80 destinations today. More citieswill be added in 2009.

Mr. Reed wrote that a key elementin Continental’s decision is that Cleve-land’s expansion will take pressure offNewark, the airline’s biggest hub.

“They want to get people who are using Newark as a transit hub, people who don’t care where they areconnecting, in order to relieve the congestion,” airport consultant AlanSbarra told TheStreet.com.

You’re old and boring — but in a good way■ The Motley Fool on Sept. 26threw a compliment at iron oresupplier Cleveland-Cliffs Inc.,though it was done in a snide way.

Fool contributor Tom Gardnerchannels legendary mutual fundmanager Peter Lynch in a columnthat looks at companies that fit Mr.Lynch’s six investment principles.

In a section titled, “Dull names,dull products, dead industries,” Mr.Gardner wrote, “You might not thinkthis of the world’s greatest — and, arguably, most famous — mutualfund manager, but Lynch absolutelyloved dreary, colorless businesses. Acompany such as Cliffs which sellsiron ore pellets to the steel industry(yawn), has more than quadrupled invalue over the past three years.”

That last fact is all that matters.

FILE PHOTO/MARC GOLUB

Continental’s planned expansion of itshub at Hopkins International Airport iswinning Cleveland some accolades.



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A model developmentForest City’s Albuquerque site

needs a “different word” saysNew York Times

The New York Times on Sept. 26spotlighted a Forest City EnterprisesInc. project in New Mexico that thepaper sees as being at the vanguardof master-planned communities.

The Albuquerque development,called Mesa del Sol, may take 30years to build. It will be a high-techeconomic development center,“and it is expected to become thesite of 60,000 jobs, 38,000 homesand a town center,” according tothe Times story.

“There should be a different wordfor this model of development,” saidMark Lautman, director of economicdevelopment for Mesa del Sol, ajoint effort of Cleveland-based ForestCity and Covington Capital Partnersof Santa Monica, Calif.

The first building completed atMesa el Sol was for Advent Solar, amaker of advanced solar cells. About200 people work at Advent, but thework force is expected to grow to1,000. The headliner of job creationat Mesa del Sol is Albuquerque Studios, which has invested $74 million in building six sound stages.

The first phase of housing, consisting of 550 homes, is aboutto break ground, The Times added.

STUFF

Youth initiative aims at betterguidance early for success laterCleveland Foundation wants earlier kindergarten registration, after-school options and job trainingBy SHANNON [email protected]

The Cleveland Foundation haslaunched an initiative that it hopeswill enable children from kinder-garten to 12th grade to be successful inschool so they can become produc-tive adults who can contribute toGreater Cleveland’s economy.

The foundation quietly has beenrallying government officials, founda-tions, community groups and busi-ness leaders to join its new Youth Development Initiative, which aimsto help children become successfuladults by giving them alternatives tojoining gangs, dealing drugs and otherwise getting into trouble whennot in school.

The foundation has set aside$650,000 to spend on the project bythe end of 2007 and $2.5 million ineach of the next three years, saidLisa Bottoms, program director forhuman services and child andyouth development at the Cleve-land Foundation. She cautions thatthe initiative isn’t a quick fix, butrather a 20- to 30-year programmeant to change the future ofGreater Cleveland.

Ms. Bottoms said the foundationlast February created a 40-membertask force to examine what Clevelandand Cuyahoga County might look likein 2025 and what tools local childrenwill need in areas such as education,recreation and employment to helpsecure their futures.

As a result, the task force createdthree initiatives that it will test in sixneighborhoods in Cleveland and

the inner-ring suburbs, with plansto include the entire county eventu-ally, Ms. Bottoms said.

The first program, which will belaunched next spring, will be the“Welcome to School Visit,” throughwhich community groups, schoolsand churches will work with TheCleveland Foundation to registerchildren for kindergarten earlierthan many are enrolled now. Ms.Bottoms said plans for this programinclude the distribution of schoolsupplies and meetings with parentsto educate them on the basics children need to succeed in school,such as getting enough sleep, receiving help with homework andreading each night.

The Youth Development Initia-tive also plans to create a network of local after-school educational programs and to work with police to make it safer for children to access neighborhood programs,Ms. Bottoms said.

Also included in the initiative’splans are programs to help teens withjob training, career development andcollege access, Ms. Bottoms said. Shesaid she hopes to prepare teens fortheir first jobs and careers, as well asto expose them to the world outsidetheir neighborhoods, which theymight never have left.

Providing jobs for area teens afterschool also will help keep them outof trouble, she said.

Baby steps requiredKristen Putnam, president of Put-

nam Community Investment Con-sulting, a consulting group working

with the foundation on the Youth Development Initiative, said the foun-dation is looking for partners to help finance and implement the initiative.Some already have signed on.

Gregory L. Brown, executive direc-tor and president of the Center for Community Solutions, said his nonprofit group will help coordinateprograms for the initiative. He saidhis center has had a similar YouthDevelopment Initiative since 2000,though on a smaller scale.

Boys & Girls Clubs of Cleveland wasa natural participant in the Youth Development Initiative because it already provides teen programs thatwill fit in well with its goals, said RonSoeder, president of Boys & Girls Clubsof Cleveland. He said the needs arereadily apparent.

“It’s the issues of the street,” Mr.Soeder said. “There are not enoughjobs for the young people who are 16to 22 years old. There also aren’tenough kids getting the educationthey need to take these jobs.”

Mr. Soeder said he thinks the initiative will be successful becauseit already has a diverse group of participants and interest in it ismounting. But no one is under theimpression that improvements willoccur overnight, he said.

“It’s going to be baby steps,” Mr.Soeder said. “These are big ideas,and it’s going to take time to moveforward.” ■

“It’s the issues of thestreet. There are notenough jobs for theyoung people who are 16to 22 years old.” – Ron Soeder, president, Boys & Girls Clubs of Cleveland


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