crain's cleveland business

$2.00/JUNE 25 - JULY 8, 2012

Entire contents © 2012 by Crain Communications Inc.

Vol. 33, No. 25

07447083781

725 SPECIAL SECTION

MAKING ITAnalyzing compensation trends across varioussectors in Northeast Ohio ■■ 5PLUS: EARNINGS POTENTIAL ■■ COST OF LIVING ■■ & MORE

NEW

SPAP

ER

Crain’s print edition to return July 9

Crain’s will not publish a newspaper on Monday, July 2. For the latest Northeast Ohio business news during our hiatus, visit www.CrainsCleveland.com.

NOTICE TO READERS

Region’s manufacturersbuoyed by buying binge

United execslaud efforts toback local hub

Cash surplus has led to bevy of acquisitionsBy GINGER [email protected]

Some of Northeast Ohio’slargest manufacturers areon a buying spree thatshows no signs of abating.

Flush with cash from threeyears of post-recession sav-ings, they’re putting theirreserves to use in the purchase ofcompanies. Since June 2011, the 10largest publicly traded manufacturingcompanies in Northeast Ohio acquired 29 businesses, more thanhalf of which were based outsidethe United States. In the previous

year, the numbers werenearly similar.

Among the buyers isRPM International Inc. TheMedina-based maker ofcoatings and sealants com-pleted five transactions inits fiscal 2012, which endedMay 31, and has plans formore, according to chair-

man and CEO Frank C. Sullivan. Thecompany is considering purchasingspecialty coatings and building materials companies in both NorthAmerica and overseas, Mr. Sullivansaid.

Sullivan

See BUYING Page 6

Early results of campaign to encouragebusinesses to fly merged airline on trackBy JAY [email protected]

The challenge from Jeff Smisek,the CEO of United Airlines, was sim-ple. And, at least so far, it appears thatchallenge to the Cleveland businesscommunity is being met.

“Every hub needs to earn its valueevery day,” he told an audience ofNortheast Ohio civic and businessleaders at a November 2010 lun-cheon in downtown Cleveland. “Thekey for Cleveland is to have a level of

business travel so that we can haveeither consistent profitability or havethat hub’s profitability in a clear lineof sight (ahead).”

The Greater Cleveland Partner-ship-led marketing campaign thatarose from Mr. Smisek’s comments— dubbed “United for Cleveland’sHub” — began in earnest in January.Early returns look good.

“Cleveland is to be commended”for encouraging customers to chooseUnited Airlines, said Greg Hart,

BROWNS, CLEVELAND’STOP CHEFS TEAM UPSymon, Whalen,

Sawyer will be featured in stadium’s

club, suite levels;parties, corporate

functions also nowhave access

By JOEL [email protected]

The Cleveland Browns are making changes to their catering offerings in the premium seating areas of Cleve-land Browns Stadium, and the new provider will bringwith it the cachet of a few local heavy hitters.

Already with presences at Quicken Loans Arena, MichaelSymon and Rocco Whalen will be featured in Aramark’s new offerings in the suites and club level at Browns Stadium. They’llbe joined by fellow well-known restaurateur Jonathon Sawyer.

The Browns have formed a new company, Cleveland Browns

RENDERINGSPROVIDED

See CHEFS Page 8

INSIDE: Jonathon Sawyer is preparing Italian concept for a University Circle opening next year. Page 8

See UNITED Page 24

20120625-NEWS--1-NAT-CCI-CL_-- 6/22/2012 3:11 PM Page 1

Banking products and services are offered by KeyBank N.A. Member FDIC and Equal Housing Lender.

We look up to ourcustomers becausemutual respect isa must in anybanking relationship.You’re the engine of our country’s economy and we believe

in treating you that way. Starting with the relationship.

That’s why we offer you a team of specialists right here in

your community who advocate for your financial future and

support your business any way we can. You’re a big deal.

It’s about time you had a bank that sees you that way.

Visit key.com/bigdeal to learn how we’ll make you a priority.

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 25 - JULY 8, 2012

REGULAR FEATURES

Crain’s expanded photo slideshows■ Crain’s has expanded its offering of photoslideshows, from an inside look at Calfee’s strikingnew space in downtown Cleveland to this week’sgallery of The Country Club in Pepper Pike, which ispreparing to host the U.S. Women’s Amateur. Toview our shooters’ latest work, click on the multimedia section at www.CrainsCleveland.com.

CRAIN’S ON THE WEB

Big Issue ......................11Best of the Blogs ..........26Classified .....................25Editorial .......................10Going Places ................12

List: Highest-paid CEOs ..................22-23

Personal View...............10Tax Liens......................14Reporters’ Notebook.....26

Audit Bureauof Circulation

Subscriptions: In Ohio: 1 year - $64, 2 year - $110.Outside Ohio: 1 year - $110, 2 year - $195. Single copy,$2.00. Allow 4 weeks for change of address. Forsubscription information and delivery concerns sendcorrespondence to Audience Development Department,Crain’s Cleveland Business, 1155 Gratiot Avenue,Detroit, Michigan, 48207-2912, or email to [email protected], or call 877-824-9373(in the U.S. and Canada) or (313) 446-0450 (all otherlocations), or fax 313-446-6777.Reprints: Call 1-800-290-5460 Ext. 125

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 & manufacturing

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 editor: Joel Hammond ([email protected])SportsSenior reporter: Stan Bullard ([email protected])Real estate and constructionReporters: Jay Miller ([email protected])GovernmentChuck Soder ([email protected])TechnologyDan Shingler ([email protected])Energy, steel and automotiveTim Magaw ([email protected])Health care and educationMichelle Park ([email protected])FinanceGinger Christ ([email protected])Manufacturing, marketing and retailingResearch editor: Deborah W. Hillyer ([email protected])

Cartoonist/illustrator: Rich Williams

Marketing director:Lori Grim ([email protected])Marketing/Events manager:Christian Hendricks ([email protected])Marketing/Events coordinator:Jessica Snyder ([email protected])

Advertising sales manager:Nicole Mastrangelo ([email protected])Senior account executive: Adam Mandell ([email protected])Account executives: Dawn Donegan ([email protected])Andy Hollander ([email protected])Lindsey Nordloh ([email protected])

Office coordinator:Toni Coleman ([email protected])

Digital strategy and developmentmanager:Stephen Herron ([email protected])

Web/Print production director: Craig L. Mackey ([email protected])Production assistant/video editor: Steven Bennett ([email protected])

Graphic designer:Lauren M. Rafferty ([email protected])

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

Audience development manager: Erin Miller ([email protected])

THE STATE OF INTELLECTUAL PROPERTY

Ohio has nearly 2.7 intellectual property-supported jobs, the fifth-highest total in the country, according to a new report from the U.S. Chamber of Com-merce’s Global Intellectual Property Center. The report measured research anddevelopment spending, the number of scientists and engineers, and theamount of patents, trademarks and copyrights produced to determine the number of jobs supported by the IP industry. Here are data for the top five IPstates:

State IP-supported jobs IP-supported job wagesCalifornia 7.39 million $65,171

Texas 4.62 million $55,148

Illinois 2.83 million $56,525

New York 2.78 million $69,581

Ohio 2.69 million $48,646

SOURCE: U.S. CHAMBER OF COMMERCE; WWW.THEGLOBALIPCENTER.COM


JUNE 25 - JULY 8, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

THE WEEK IN QUOTES“We ... give companiesthe ability to have thebest in Cleveland dining, and that’svery important for thecorporate functionside of things.”— Jim Ross, vice president ofbusiness development for theCleveland Browns. Page One

Companies’mobile dos,don’ts listsgrowingWith more devices inthe workplace, firms’policies more detailed

By CHUCK [email protected]

Three years ago, if a companyhad a policy regarding how itsemployees should use their mobile devices, it consisted ofmaybe a few pages, max.

Now some companies thatwork with mobile device man-agement firm Vox Mobile Inc. ofIndependence have policies thatare 10 or 12 pages long.

The influx of so many differenthigh-powered mobile devices hasmade life more complex for thepeople charged with managingthem, according to several infor-mation technology experts inNortheast Ohio.

Over the past two years, manylocal businesses that previouslyissued nothing but company-owned BlackBerrys have startedletting employees use iPhones,iPads and Android phones, too.

Thus, they’ve got more devicesto secure and support. And theiremployees have toys with allsorts of capabilities that can beabused and misused.

Making matters even more difficult, many businesses arestarting to let employees use theirown smart phones and tabletcomputers, as opposed to com-pany-owned devices, to tap intocorporate networks that oftencontain sensitive data. More than70% of Vox Mobile’s clients do so already or are moving in that direction, said Jeff Fuggit, vicepresident of marketing for thecompany.

“This is a tidal wave,” he said ofthe “bring your own device”trend.

Erecting a ‘virtual barrier’Companies aren’t about to

stop using the latest consumergadgets, given how popular andpowerful they are. Instead,they’ve had to figure out how to

First Fed ofLakewoodseeing loandemand rise Bank’s originations double, and its competitors are taking notice By MICHELLE [email protected]

There’s not much at First Federal of Lakewood that isn’tgrowing, but here’s what some say is most surprising.

At a time when most bankers report unimpressiveloan demand, First Federal in the first five months of thisyear doubled its loan originations, or new loans, over theyear-ago period to $350 million. It’s posting recordnumbers, both in number of loans and dollars, accordingto Thomas J. Fraser, executive vice president and chiefoperating officer.

First Federal has increased itslending — predominantly residentialmortgages but also multifamily andcommercial loans — both in thecommunities it entered through itsDecember 2010 acquisition of Cen-tury Bank and in its pre-existing foot-print. None of the increase includespurchased loans; rather, all of theloans were originated by First Federal’semployees, Mr. Fraser said.

“We’ve seen a strong purchase activity this year,which could be signaling better housing conditions inNortheast Ohio than we’ve seen,” Mr. Fraser said, notingthat 60% of the institution’s loan growth has been inhome purchases.

Much of the mortgage business today is in refinancing,though industry insiders say they’re hearing anecdotallythat a shift from refinances to purchases is occurring.

First Federal’s competitors have noticed its “very aggressive approach to growing,” said Robert L. Palmer,president and CEO of the Community Bankers Associa-tion of Ohio, citing conversations he’s had with bankersin this region.

“Loan demand is anemic at best and to see them

MARC GOLUB

Radio executive Tom Wilson expects to launch a new rock station, WLFM-LP 87.7, in late July.

MAKING AIRWAVESRadio industry veteran says new station will use lots oflocal content to compete with satellite, Internet options

By MICHELLE [email protected]

Tom Wilson has taken to theCleveland airwaves success-fully before — to the tune ofa multimillion-dollar pay-

day in 1999 — and he’s fixing to do itagain.

Mr. Wilson, who with his partnerssold two of the city’s top-rated sta-tions, WDOK-FM, 102.1, and WRMR-AM, 850, in a four-station packagedeal 13 years ago for more than $200million, is launching a new radio station here. He’s confident the localcontent and local personalities heplans to deliver will prove profitable,even in this era of satellite and Inter-

net radio. Mr. Wilson, who has spentthree decades in the broadcastingbusiness, expects to launch the newstation, WLFM-LP, 87.7, in late July.

Two weeks ago, the station beganrunning a four-song loop to test itssignal, playing the fight songs of theCleveland Browns, Indians and Cavaliers, and “My Town” by TheMichael Stanley Band. That spawnedspeculation that it will be a sportsformat, though the Ohio MediaWatch blog noted: “For all we know,the sports-themed songs are an attempt to ‘sound Cleveland’ — asfew songs exist that mention the cityby Lake Erie.”

That’s exactly it: Mr. Wilson says

See LAKEWOOD Page 25

See RADIO Page 9See MOBILE Page 23

INSIGHT

Fraser

LOANS UP AT FIRST FED LAKEWOODFirst Federal of Lakewood has steadily increased its loanorigination as it’s grown overall. Here, tracking that rise innew loans, with the 2012 figure through May 31 — whichprojects to $850 million for the year:

Year Loan originations

2012 (first 5 months) $350 million

2011 $477 million

2010 $412 million

2009 $362 million

SOURCE: FIRST FEDERAL OF LAKEWOOD

“Acquisitions are ...quicker and in manyways safer than theprocess of establishinga presence in a devel-oped world fromscratch.”— Frank C. Sullivan, CEO of RPM International Inc. Page One

“It’s been a longprocess, but we have aUSGA-quality courseand we’re ready for it.”— Nancy Heinen, member of The County Club in Pepper Pikeand co-chair of the U.S. Women’sAmateur tournament being heldthere Aug. 6-12. Page 5

“We are finding weare compensating ITfolks and engineers ata higher rate ofgrowth than othertypes of positions.”— Beth Stec, MCPc vice presidentof corporate communicationsand human resources. Page 15

“What you can dowith those dollars(earned in Cleveland)is demonstrably higher than what youcan do in Atlanta orChicago.”— Mike Milby, president and CEOof executive recruiting firmRatliff & Taylor. Page 20



What do You Value?

216.241.3272 or www.meadenmoore.com

Maybe it’s advice from accounting and tax professionals to help your business grow and thrive.

Creating Value.

We Value that too.

SAFETY ◆ SERVICE ◆ CONVENIENCE

216-362-9904 www.FlySkyQuest.com [email protected]

AIR CHARTER SERVICEAIRCRAFT MANAGEMENT

The Sky Quest Travel Experience:◆ Relaxing travel with no waiting in lines, no carrier delays◆ A flight that departs on YOUR schedule◆ A private aircraft with a crew you know and trust◆ Substantial savings over jet card programs◆ One-way flights available with NO repositioning fee

Northern Ohio’s Premier Air Charter CompanyNorthern Ohio’s Premier Air Charter Company

Volume 33, Number 25 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com-bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July,the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland,OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio,and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’sCleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

REPRINT INFORMATION: 800-290-5460 Ext. 136

‘Highway’ built, OneCommunity nowsearching for willing test driversSoftware developers able to capitalize on nonprofit’s high-speed network

By CHUCK [email protected]

OneCommunity’s 1,735-mile fiber-optic network isalmost entirely built.

Now the Cleveland non-profit can focus more of itsenergy on what Scot Rourkedescribes as the bigger goal:getting people to create softwarethat harnesses the network’s power.

“The highway’s done,” said Mr.Rourke, OneCommunity’s presidentand CEO. “What kinds of cars arewe going to put on this? And wewant lots of cars on it.”

The organization — which offershigh-speed Internet access and information technology services to governments and nonprofits inNortheast Ohio — is increasing itsefforts to reach out to companies,universities and entrepreneurs whocould come up with new ways totake advantage of the network’sbandwidth.

The nonprofit isn’t alone in itsquest: The National Science Foun-dation two weeks ago announcedthat it selected Northeast Ohio asone of 25 regions that will participatein the U.S. Ignite partnership, a national effort designed to spark thecreation of new software programsthat can make the most of ultra-fastInternet speeds.

OneCommunity, which is leadingU.S. Ignite’s work in NortheastOhio, could receive funding for theeffort through the National ScienceFoundation, and it aims to raisemoney and in-kind support fromother organizations, too. The non-profit hasn’t yet laid out a list of action steps, but it already is talkingto several “major players” who couldcome up with ideas for software anddevelop the tools, Mr. Rourke said.OneCommunity — which earlierthis year formed a “Smart Region”team that will advise the group onthe effort — might even create aprize competition to get area com-puter science students interested.

Testing, testingWhat kind of software might they

create? Many programs likely wouldbe based around the idea of helpingpeople communicate via high-defi-nition video, Mr. Rourke said: Pic-ture doctors talking face-to-face withdistant patients, teachers interacting

with classes full of studentsfrom around the world orjudges arraigning suspectswithout meeting them inperson.

Developers also couldcreate better software dis-patch systems for policedepartments and bettermapping tools for local gov-

ernments. They might even comeup with tools to help manage the flowof electricity through your appliancesor the flow of cars on a busy street.

Though some software programscan do these types of things, manydon’t take advantage of the speedsthat can be achieved through fiber-optic networks, Mr. Rourke said.

However, Mr. Rourke said he expects the United States eventual-ly will have a more robust broad-band network. Entrepreneurs andcompanies that want to prepare forthat day can test their ideas onOneCommunity’s infrastructure.

The network is a great test bed, hesaid, given the number of hospitals,schools, libraries, government agen-cies and nonprofits connected to it.OneCommunity also has a relation-ship with the Case Connection Zone,a group of more than 100 homes inthe University Circle area that forresearch purposes were providedsimilar Internet connections. MostOneCommunity customers and allCase Connection Zone participantshave 1-gigabit-per-second Internetconnections, which is more than100 times faster than typical cableand DSL Internet speeds. Somehospitals on the OneCommunitynetwork subscribe at even fasterspeeds, Mr. Rourke said.

Developers would be hard-pressedto find another region where somany institutions have gigabit-speedconnections, he said.

“There are not that many othernetworks, especially ones you candevelop on,” he said.

We’re top three! Joe Kochan agrees. The co-

founder of U.S. Ignite said that, because of OneCommunity, North-east Ohio is “ahead of the game”when compared to other U.S. Igniteregions. The organization has pow-erful infrastructure, deep relation-ships to the institutions that use itand connections to researchers whocan help maximize its capabilities.

“They are very much ahead of thepack. Certainly in our top five; prob-ably in our top three,” Mr. Kochan said.

Through U.S. Ignite, the NationalScience Foundation aims to spur thecreation of about 60 high-tech soft-ware programs focused on educa-tion and work force development,advanced manufacturing, health care,transportation, public safety andclean energy. The project is intendedto show how the country might benefit if it upgrades its broadbandinfrastructure, Mr. Kochan said.

“What if you had unlimited band-width with more capabilities?” hesaid.

The country’s Internet infrastruc-ture needs an upgrade, Mr. Rourkeargues. By streaming online videos andmusic, people already are becoming“super users” of data, often withoutrealizing it, he said.

With better infrastructure andsoftware designed to exploit it, theUnited States among other thingswill be able to cut the cost of govern-ment services, health care and edu-cation while also improving the delivery of those services, he said.For instance, Mr. Rourke said he expects online education to becomea lot more popular — and a lot better— in the future.

“The experience is going to bemore enriching. You can get Chinesefrom China,” he said.

On the government front, he described how, after South Koreastarted providing a large number ofgovernment services via the Internet,service satisfaction rates went upand the size of government agencieswent down.

OneCommunity already hashelped Jeff Mowry, Cuyahoga County’sfirst chief information officer, applyfor three grants to fund IT collabora-tion projects that the county didn’tend up winning. The nonprofit’sbroadband network, which is usedby roughly 30 county facilities, alsoplays a crucial role in helping the former Chrysler executive execute hispart of the county’s Western ReservePlan, which is the county’s effort tocut the cost of government in North-east Ohio by selling services to citiesin the area that may not be able toprovide them as efficiently.

“Having the technology infrastruc-ture that OneCommunity brings tothe table helps us get to that WesternReserve vision,” Mr. Mowry said. ■

Rourke

ON THE WEB Story from www.CrainsCleveland.com.

Former Case professor will lead WeatherheadCase Western Reserve University

has tapped one of its former profes-sors, Robert E. Widing II, as the newdean of its Weatherhead School ofManagement.

Mr. Widing, who currently servesas the dean of the Macquarie School ofManagement in Sydney, Australia,served as assistant professor at

Weatherhead from 1988 to 1993. Hewill replace Mohan Reddy, who announced last summer he wouldreturn to teaching full time afterserving as dean for five years.

“Rob Widing possesses the depthof experience and breadth of per-spective required to lead in an era ofincreasing complexity and interna-

tional engagement,” Case WesternReserve University president BarbaraSnyder said in a news release. “Healso appreciates the vital importanceof strategic thinking, philanthropy andcontinuous improvement of acade-mic offerings.”

Mr. Reddy ascended to the dean-ship in December 2006 after servingabout five months in an interim ca-pacity. During his tenure, he helpedredesign many of Weatherhead’sprograms and brought a sense of stability back to the business school. ■



Patio Enclosures leads growing home improvement contractorBy GINGER [email protected]

Great Day Improvement LLC, alocal private equity group, is buildinga name for itself east of the Missis-sippi, and it’s starting the processin its own backyard.

The Cleveland-based group hasbeen on the acquisition trail sinceits formation in 2010, buying threebrands in Ohio in less than two years.

Through those acquisitions, GreatDay is constructing for itself anidentity as a full-scale home improve-ment contractor. Its portfolio nowincludes Central Aluminum Co. of

Columbus, a custom producer ofaluminum extrusions; SoftWall Finishing Systems LLC in Sharon,Ohio, a producer of fabric-coveredwall panels; and Patio EnclosuresInc., a manufacturer, retailer anddistributor of sunrooms, solariums,patio and porch enclosures, amongother products.

Great Day is using Patio Enclo-sures, with its well-known jingleand developed customer base, asthe face of its expansion. Great Dayhas 250 employees, about 100 ofwhom work out of the Patio Enclo-sures headquarters in Macedonia.

Since acquiring Patio Enclosures

in December 2010, Great Day hasopened seven new retail branches,bringing the total to 17 company-owned sites and 11 franchise sites.It also expanded the dealer networkto 20 dealers, up from about 15 atthe end of 2010, giving the company48 retail locations in 28 states.

And Great Day isn’t pulling theshades on growth just yet.

The company has a strategicplan that involves opening morePatio Enclosures retail sites, devel-oping a greater distribution network,establishing an online presenceand acquiring more brands.

“We’re poised for tremendous

growth,” said John Fitzpatrick, gen-eral manager of the Cleveland marketfor Patio Enclosures.

Great Day’s sales were up 30% in2011 and are on track to show sim-ilar increases in 2012. Bill Goddard,vice president of sales for Patio En-closures, said he sees opportunityin the home improvement market.With the residential housing marketstill on the path to recovery, there isroom for growth both as it reboundsand in the interim as homeownerschoose to upgrade and repair theirexisting homes, he said.

Plus, the company plans to con-tinue to diversify, entering more areas

of the home improvement market. “If we just do one thing, you can’t

have any hiccups. It really diversi-fies our company,” Mr. Goddard said.“We ... continue to be on the huntfor great brands.”

He said the company is interestedin complementary companies, suchas window or awning companies.

“Just because we sell somebodyelse’s right now, doesn’t mean wecan’t own it in the future,” he said.

The company also plans to expand its geography west throughdistribution at big box retailers andthrough commercial distribution athotel chains. ■

Country Club preps for U.S. Women’s AmBy JOEL [email protected]

If the members at The CountryClub in Pepper Pike are leery oftheir club being overtaken for aweek in early August by 156women’s amateur golfers and someof their families, they sure have afunny way of showing it.

Members at the club, after all —along with many big-name North-east Ohio corporations — are footingthe bill for the 112th U.S. Women’sAmateur, one of the United StatesGolf Association’s most prestigioustournaments. The tournament, whichfeatures two days of stroke play fol-

lowed by five of match play to whittlea field of 156 to one, will be held atThe Country Club on Aug. 6-12.

All told, individual and corporatedonors, with the help of the GreaterCleveland Sports Commission,raised more than $500,000 to stagethe tournament. That total coversall transportation, meals for theplayers — officials expect morethan 2,500 meals will be served —for the entire week, security andother components. The entireevent is free to the public, and spec-

tators will have inside-the-ropes access all week.

The USGA visited the club almostfour years ago and approved it forits first USGA event since 1935,when it played host to the U.S.Men’s Amateur. Tournament co-chair Nancy Heinen said the USGAwas impressed by the challenging,rolling course — from which thewomen most often will play fromthe men’s tees, with the coursemeasuring 6,512 yards — and likedthe Cleveland-area venue.

“It’s been a long process, but wehave a USGA-quality course andwe’re ready for it,” said Ms. Heinen,a member of the club who is a retired

BP executive. Her co-chair, ScottWilson, is a recently retired partnerat Cleveland law firm Calfee, Halter& Griswold.

Now in the home stretch, theUSGA has paid recent visits to mapout pin locations and areas to makethe course more challenging. Coun-try Club officials, meanwhile, still

are trying to line up volunteers andmake other final preparations.

The Country Club course was designed in 1930 by William Flynn,who also designed famed coursesShinnecock Hills on Long Islandand Cherry Hills in Colorado. In2005, the course was restored by byBrit Stenson of IMG Design. ■

The difficult par-3 ninth holeat The CountryClub in PepperPike will be akey test in August’s U.S.Women’s Amateur tournament.RUGGERO FATICA

ON THE WEB: For more photos of TheCountry Club, visit www.CrainsCleve-land.com/CountryClub.



Opportunity.A challenge often is disguised as a chance for progress, so a companyshould be aware of every option. SS&G Parkland has the tools and experience to help with your next step.

Combining The Parkland Group Inc.’s turnaround and management consulting experience with SS&G’s business valuation, litigation, and forensic consulting expertise, SS&G Parkland’s expert services include: › bankruptcy and receiverships › business valuation › fraud detection and deterrence › investment banking and corporate finance › litigation consulting › management consulting and strategy › turnarounds, workouts, and restructuring

SS&G Parkland: innovative expertise under one roof.Learn more at www.SSandG.com/Parkland.

• 200,000 sf Gross Rentable Area• 88 Parking Spaces• Fluorescent Lighting• Roof Mounted Zoned HVAC• Sprinkler System• Masonry Brick/Split Rock walls

U.S. General Services Administration312-353-0302 / www.realestatesales.gov

• Loading Dock• Ideally located next to theCleveland-Hopkins InternationalAirport, Brookpark Road, andI-480

• Zoned OB3

Fairview Park, OhioTwo Three-story Office Buildings on 9.8 acres

Buying: Pace picks back up as industry rebounds “Acquisitions are a way of quickly

establishing a base of business thatyou can then expand from,” Mr.Sullivan said. “It’s quicker and inmany ways safer than the process ofestablishing a presence in a devel-oped world from scratch.”

Just last week, RPM announcedthe acquisition in Brazil of Viapol Ltda.,a maker of building materials, in adeal that Mr. Sullivan said “estab-lishes a substantial footprint forRPM and our many industrial andconsumer businesses in the excitingBrazilian market.”

Mr. Sullivan said acquisitions are

an attractive option for companieslooking to invest in an environmentin which traditional investment options, such as U.S. Treasury bonds,aren’t giving companies profitablereturns.

“Leaving your money in cash is abad idea,” said Mr. Sullivan, whosecompany had $735 million in cashand available lines of credit as ofFeb. 29. That’s double what thecompany carried in the way of cashand credit lines seven years ago.

The extra reserves are givingcompanies that hold them a leg upon acquisitions because they cantake quick action when opportunities

continued from PAGE 1 arise. And opportunities are becomingmore plentiful as owners that delayedselling during the downturn look tocash in on the upswing in businessvalues, local executives say.

Where to invest For Lincoln Electric Holdings Inc.,

finding a place to spend the moneygenerated by the Euclid-based makerof welding equipment had been aproblem until recently.

The $300 million in cash LincolnElectric had on its balance sheet asof March 31 wasn’t there becausethe company was trying to be con-servative following the recession.Rather, Lincoln Electric hadn’t hadenough opportunities to invest it.

The acquisition environment, particularly in 2009 and 2010, wasdepressed because of the decline in business valuations, said Vince Petrella, Lincoln Electric’s chief financial officer.

“It was not so much that we weren’tinterested,” Mr. Petrella said. “It’smore that the sellers were unwillingto separate themselves from theirproperties because valuations haddeclined so rapidly.”

However, since the manufacturingsector rebounded, Lincoln Electrichas had its foot on the acquisitionaccelerator.

In the past 12 months, it hasbought four companies — Wayne TrailTechnologies Inc., an Ohio-basedmaker of automated systems andtooling; Weartech International Inc.,a California-based producer of cobalt-based hard facing and wear-resistantwelding consumables; Applied Ro-botics Inc., a Nevada-based manu-facturer of CNC cutting tables andaccessories; and the welding operationof Maryland-based Techalloy Co., aproducer of nickel alloy and stainless

steel welding consumables.

Building reserves When Joseph Gingo joined Akron-

based A. Schulman Inc. in 2008 asCEO, he immediately set to work increasing cash levels at the supplierof plastic resins, in order to stabilizethe company. As of last Feb. 29, theend of A. Schulman’s fiscal secondquarter, the company had $95.8 million in cash and $201.5 million inuntapped credit lines.

“If you want to grow and increaseprofits, one of the areas you have tolook at is acquisitions,” Mr. Gingosaid. “When you have a lot of cash,you can buy things.”

In the past year, A. Schulman hasagreed to acquire Elian SAS, a Frenchproducer of specialized color masterbatch products, for $63 million, andbought a majority interest in an Argentina-based maker of rotationalmolding materials.

Because Europe and the UnitedStates have been slower-growthmarkets, A. Schulman has focusedon expanding in emerging marketswhere there is more growth potential,Mr. Gingo said. That’s the thinkingbehind the company’s 50-50 jointventure agreement with NationalPetrochemical Industrial Co. of SaudiArabia to produce polypropylenecompounds at a plant in that MiddleEastern nation. A. Schulman’s initialinvestment in the relationship isabout $14 million, with project costsfor the Saudi plant estimated at $70million.

“Several aspects of this deal willaccelerate A. Schulman’s expansionand visibility in its priority growthmarkets of Africa, India and the MiddleEast while better serving our existingglobal customers with high-qualitypolypropylene compounds,” BernardRzepka, general manager and chiefoperating officer of A. Schulman, Europe, Middle East, Africa, said inannouncing the joint venture June 11.

Parker picks up the paceParker Hannifin Corp. decided to

preserve cash and be more cautiousabout acquiring companies duringthe recession, according to AidanGormley, the company’s director ofcorporate communications.

That’s not the case anymore. “Today, we are back to our more

normal pace and have a strong pipelineof opportunities we are evaluating,”Mr. Gormley said. “Our considerablystrong cash flow, low debt and excel-lent credit rating give us significantcapacity to invest in growth initia-tives such as regional expansion, in-novative new products and systems,and acquisitions that enhance ourbusiness.”

Parker has acquired four companiesin the past year and plans to look formore opportunities in the motionand control markets, Mr. Gormleysaid. Each acquisition is one that will

expand the company’s product lines ortechnology offerings, allow it to entera new market or to expand geograph-ically or drive aftermarket sales.

The company’s goal is to grow revenues at a 10% compounded rateannually, with half that growth generated from acquisitions, Mr.Gormley said.

Still, acquisition-minded companiesaren’t throwing all caution to thewind. A number of public companiesare carrying far more cash today thanthey did before the recession, RPM’sMr. Sullivan said.

Nonfinancial corporate cash balances at the end of the first quarter of 2012 were $1.74 trillion,up 0.7% from the previous quarterand up 25% from the first quarter of 2008, according to the June 7 Fed-eral Reserve Flow of Funds report.

“I think going forward companiesare going to operate with a largercushion of cash and excess liquidityon an ongoing basis than, let’s say,they did five to seven years ago,” Mr.Sullivan said. ■

Acquisitions in the last year byNortheast Ohio’s top 10 publiclytraded manufacturing companies,according to Crain’s research:

EATON CORP.Nine acquisitions, including a May

21 announcement of plans to acquire Cooper Industries plc, anelectrical equipment supplier basedin Dublin, Ireland, for $11.8 billion.

J.M. SMUCKER CO.Acquired in January a majority of

the North American food servicecoffee and hot beverage business ofSara Lee Corp. in an all-cash trans-action.

LUBRIZOL CORP.Four deals, including last week’s

agreement to buy Lipotec SA, aSpanish company that makes ingre-dients for personal care products.

NORDSON CORP.Four deals, including June’s for

New Castle, Pa.-based Xaloy SuperiorHoldings Inc., a maker of melt delivery components for plastic injection and extrusion machinery.

PARKER HANNIFIN CORP.Four deals, including acquiring

Snap-tite Inc., an Erie, Pa.-basedmanufacturer of high-pressure fluidpower components for the oil andgas, industrial and research markets.

TIMKEN CO.Two deals for companies special-

izing in drive chains, roller chainsand gear-drive systems.

TRANSDIGM GROUPThree, including February’s deal

for Phoenix, Ariz.-based AmSafeGlobal Holdings Inc. for $750 millionin cash.

DEALING WITH IT



Could your global banking needs

use some local advice?

Experience worldwide capabilities with hometown sensibilities.

From advisory, trade, and payment services to working capital and foreign exchange,

FirstMerit combines all the international banking products and services you’d expect

from a larger institution, with the personalized service of a trusted neighborhood bank.

Follow the latest market trends @firstmerit_mkt

Member FDIC 294 _FM12

TO L E A R N MOR E, C ON T A C T : Chris Pilkington at 800-237-6384. P E R S O N A L B U S I N E S S C O M M E R C I A L W E A LT H

Once-booming Medina County homebuilder now reeling Owner entangled in Chapter 11 bankruptcyfiling, targeted in court by multiple lendersBy STAN [email protected]

When home building boomed last decade, Unmistakably PremierHomes of Wadsworth ranked repeat-edly as the most prolific builder inMedina County. The local outfit led by Wadsworth native Stephen Kovack slugged it out with nationalbuilders such as Ryan Homes andothers as they harvested its fields forhome sites.

Now Mr. Kovack is struggling tohang onto the Wadsworth officebuilding that houses UnmistakablyPremier’s headquarters and isweathering a blizzard of legal woes.In a bid to retain the building, the7972 Ridge Road LLC that Mr. Kovackcontrols has filed for voluntaryChapter 11 reorganization in theU.S. Bankruptcy Court NorthernDistrict of Ohio.

The builder also is the target ofmore than $1.6 million in judgmentsin Medina and Cuyahoga countycommon pleas courts. The largest isa $1 million judgment to satisfy anote filed by Fifth Third Bank.

Moreover, an unfinished home at 5588 Bilney Court in LafayetteTownship, owned by UnmistakablyPremier Homes, sits skeleton-like in a neighborhood populated withdozens of homes the builder sold inbetter times.

Lafayette Township Trustee LyndaBowers, a realty agent herself, saidshe fields calls from Bilney Courtneighbors when plastic sheets on thewalls rustle too loud in a big wind orpieces of wood blow off in a storm.The sight that galls neighbors most,she said, is that they see workers intrucks with Unmistakably Premierlogos driving through the massivesubdivision. New homes are risingagain as the worst realty debacle sincethe Great Depression wanes acrossthe nation.

Ms. Bowers hopes that MedinaCounty and her township can nabsome money that Ohio AttorneyGeneral Michael DeWine will makeavailable to help local governmentscope with foreclosures. She hopes touse it to demolish the battered Bilneyhouse.

“Most people think of old, dilapi-dated housing in urban areas needingdemolition,” she said in an inter-view, “but that’s not the case here,”

‘Beat up like everyone else’In a phone interview, Mr. Kovack,

Unmistakably Premier founder andowner, blamed the Bilney house onHuntington Bank pulling his line ofcredit as it stopped funding homebuilders in 2010.

“We’ve been beat up like everyoneelse,” Mr. Kovack said. “We built 120 homes in 2010. We had (morethan) 36 homes to start, with earnestmoney down, when the big bankspulled our financing. I would say wewere one of the last ones to experi-ence what other (smaller) buildershad earlier.”

Mr. Kovack said he is trying to getfunds to complete 40 homes he hasunder contract. He hopes to clearthe decks to rebuild his business. Hesaid he hopes to land money fromhedge funds to start building withnew resources by August.

“You get through it,” Mr. Kovack

said. “Buyers are back. As a volumebuilder, this is what you face. In the1990s there was a toilet shortage. Ihad 40 homes waiting for toilets.”

Despite the plethora of legal andfinancial wrangles, the June 1 bank-ruptcy filing refers solely to the 1392High St. office building owned by7972 Ridge Road LLC. The Pruden-tial Kovack Realtors brokerage oper-ated by his sister, Michele Boyd, andseveral tenants also are in it.

Mr. Kovack said PNC did not wantto extend his loan on the officebuilding, but he wants to keep it. He

built it. The bankruptcy filing notesUnmistakably Premier was not payingits rent and would move.

“Why pay the rent when they arenot renewing the loan?” Mr. Kovacksaid.

The court filing says 7972 Ridgefiled for reorganization to protectthe asset because PNC Bank had secured a foreclosure order in Medina County Court of CommonPleas.

The firm’s filing maintains it is eligible for bankruptcy reorgani-zation because the more than $1million loan by PNC Bank and another for $635,000 for Wooster-based Wayne Savings CommunityBank exceed the $1.3 million appraisal for it set by the Medina

sheriff’s office. The sale only nettedone $990,000 bid, according to thebankruptcy filing.

Make no mistakeThe homebuilder also is the

subject of a website dubbed “Mistak-ably Premier Homes” where dozensvent complaints about buildingquality or alleged nonperformanceon home-sale contracts. The sitehas 45 names on a petition callingon the builder to honor warrantiesand contracts.

Of the website, Mr. Kovack saidit’s hard for people to understandhow some houses keep going upbut not others as different loansfund them.

Banks and buyers are not the

only ones miffed with Premier.Pritts Concrete Inc. of Rootstown,Ohio, last April received a judgmentin Medina County Court of Com-mon Please for $414,541 in unpaidbills. A call to the firm was returnedby an attorney, Chris Wetherbee,but his call was missed Fridaymorning and he did not return afollow-up message by deadline lastweek.

Of the lien, Mr. Kovack said,“They are just protecting them-selves from the bank.”

Now he sees Ryan Homes buildingon lots in Dover Highlands andTiberon Trace in Wadsworth Unmis-takably Premier might have sold.“All that money,” he said, “is leavinghere.” ■



McDonald Hopkins LLC600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400

Carl J. Grassi Shawn M. RileyPresident Cleveland Managing Member

Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach

Energy development in Ohio is on the fasttrack. Our legal team includes diversespecialists who have been at the forefrontof the growing energy industry in our state.The stakes are high. We have a high-energy

group that is focused onproviding insight for yourenergy challenges andforesight for the issueson the horizon.

The Ohio Energy ChallengeWe have the team for that.

mcdonaldhopkins.com

OFFICE LEASING OPPORTUNITIES IN CLEVELAND

Completely RenovatedIndoor Parking

Dry CleanerMarket, Florist

Restaurants Car Rental

Great Highway AccessManned Security Desk at

EntrancesOn-Site Property Management

and MaintenanceEmbassy Suites Hotel

Completely RenovatedExpansive Parking Area

Fitness CenterFull Service Restaurant

Outdoor Patio Area

Close to Major Highways and Attractions in the West

Bank of the Flats.Easily Accessible From Downtown Cleveland.

On average, Northeast Ohio employers save $13,513 by hiring an intern for entry-level projects, versus assigning a higher-skilled, full-time employee.

Learn more by reading NOCHE’s 2012 Regional Internship & Co-op Pay Rates, Practices, and Economic Impact executive summary at www.noche.org/intern.

Chefs: Browns eye non-gameday events Hospitality Group, that will featureanother of Mr. Symon’s B Spot restau-rants, a duplicate of Mr. Whalen’sRosie and Rocco’s restaurant at theHorseshoe Casino Cleveland, andSawyer’s Street Frites, which willfeature the signature item from Mr.Sawyer’s Greenhouse Tavern on EastFourth Street in downtown Cleveland.

“Bringing in three of the pre-eminent chefs in the region, wethink, is a way to re-energize, revi-talize and add a nice component toour premium offerings,” said JimRoss, the Browns’ vice president ofbusiness development. “There’s localequity there; they’re all visible mem-bers of the community.”

With Levy Restaurants’ contractto provide services in the stadium’spremium areas expiring, the Brownsreceived proposals from many con-cessionaires, including Levy andDelaware North Sportservice, the latterbeing the Browns’ general conces-sions provider.

But Aramark Sports and Enter-

tainment, a Philadelphia-based armof Denver-based Aramark, stoodout when the Browns visited othervenues at which Aramark providessimilar premium services. In Cleve-land, the company will operate inthe stadium’s two club areas, itssuites and at the 200-plus corporateevents, weddings and parties to whichthe stadium plays host each year.

The latter business is an area theBrowns want to grow, according toMr. Ross, so Aramark’s ability tobring Messrs. Symon, Whalen andSawyer on board helped.

“The chef component gives us aunique hook to host more corporatefunctions,” Mr. Ross said. “We open upthose stands and give companies theability to have the best in Clevelanddining, and that’s very important forthe corporate function side of things.

“Aramark presented a plan thatreally hit on their ability and trackrecord at other buildings; they’vedriven that (non-gameday) businessat other buildings.”

Kevin Kearney, Aramark’s district

manager in the Cleveland area, saidthe company’s success in that arenahas been fueled by the proliferationof football-only stadiums across theNFL. With only 10 games and at besta handful of concerts on the calendar,these stadiums go unused for majorportions of the calendar.

“There’s been an opportunitythere for greater facility utilization atthese stadiums,” Mr. Kearney said.“You’re looking at a lot of open dates,and we’ve had tremendous successusing the premium spaces for specialevents. We think having these chefswill make the facility more attractivefor (special event) usage.”

Howdy, neighborThe Browns didn’t have to look far

for at least one Aramark reference:The company opened B Spot, a burgerrestaurant by Mr. Symon, on The Q’smain concourse, and Bar Symon, onthe arena’s club level, in 2009. Beforelast season, Aramark opened Mr.Whalen’s Rocco’s Nachos and Tacosat The Q. Mr. Sawyer, in addition tothe Greenhouse Tavern, also ownsNoodlecat, on Euclid Avenue nearEast Fourth, in downtown Cleveland.

At The Q, the Cavaliers were tryingto reinvest in the facility and updateand refresh concepts, according toMr. Kearney, who spearheaded theinitial partnership with Mr. Symon.Mr. Kearney said Mr. Symon and hisbusiness partner, Doug Petkovic, gotAramark thinking about an expandedpartnership with Messrs. Whalen andSawyer, which presented itself whenthe Browns sought a new provider intheir premium areas.

“These guys are Cleveland cham-pions and Cleveland sports fans,”Mr. Kearney said. “We’ve been dis-cussing different opportunities withthem for a number of years.”

Aramark, which operates at over150 venues in the United States andCanada, including Blossom MusicCenter in Cuyahoga Falls, is in thebeginning stages of construction ofthe new stands at Cleveland BrownsStadium. Mr. Kearney said the com-pany’s goal is to have the new spacesfinished by July 29, when countrymusic stars Kenny Chesney and TimMcGraw play at the stadium. ■

continued from PAGE 1

Sawyer preparing Italian concept for University CircleBy KATHY AMES [email protected]

Before Jonathon Sawyeropened the French-inspiredGreenhouse Tavern, he andsome of the restaurant’sco-pilots traveled to Francefor some research and development.

He went to Tokyo to more fullyintegrate himself with the Japanesemetropolis and cuisine before unveiling Noodlecat.

Now the chef has recently returnedfrom a 40-day jaunt in Italy, the bulkof the time spent in Trentino, where

Mr. Sawyer engrossed him-self in the culture in prepa-ration for a planned spring2013 opening of an Italianconcept targeted for Uptownin University Circle.

“The concepts are repre-sentations of our experi-ences,” Mr. Sawyer said.

The chef is constructinga menu inspired by the cuisine ofthe northern Italian Trentino region,which highlights single-grain pastas,potatoes, cabbages, apples, richcheeses, pork and freshwater fish.

“I think the restaurant will bewell-received because it gravitates

toward our Austrian, Hungarian,Slovakian and Germanic heritage,”he said.

He plans in September to send toItaly Greenhouse Tavern chef BrianGoodman, who will head up the yet-to-be-named eatery.

Like his other two establishments,Mr. Sawyer anticipates the Italianconcept will become a certifiedgreen restaurant.

Once the project comes online,Mr. Sawyer expects to boost his operation’s current employment ofabout 100 to between 160 and 170.

Meanwhile, the chef and his staffhave been busy churning out artisanvinegar, which plays a role in manyof the restaurants’ dishes. In Febru-ary, it hit the shelves of local shopssuch as neighboring retail outfitDredger’s Union, as well as PublicanQuality Meats restaurant in Chicagoand Houston grocer Revival Market.

He’s also working with ClevelandHeights author Michael Ruhlman tooffer the vinegar online throughOpenSky, which sells products en-dorsed by celebrities and experts.

Sawyer

Greenhouse Tavern andNoodlecat pastry chef MattDanko is scheduled to be inLos Angeles today, June25, for one sweet honor.

Mr. Danko, 29, hasbeen named one of 20“Young Guns” by Eater, anational restaurant, barand nightlife blog. The site definesYoung Guns as its “annual roll call of the next guard — the mostpromising newbies in food, wine andhospitality.”

“It’s really exciting,” Mr. Danko

said. “It’s cool for therestaurant, but it’s onemore reason why this cityis great.”

The pastry artist is theonly Young Gun fromOhio, of 2,000 applica-tions. Mr. Danko beganworking three years ago

at the Greenhouse Tavern as an intern before accepting a full-timeposition as a cook. Mr. Sawyer twoyears later gave him the reins tocontrive the dessert menu at thegastropub. — Kathy Ames Carr

Greenhouse pastry chef receives honor

Mr. Sawyer said he sells eachmonth between 500 and 1,500 bottles of the boutique vinegar. Theproduction and bottling processshuttles between the basement ofthe chef’s Shaker Heights home andThe Greenhouse Tavern.

To address the production limita-

tions, the chef is prototyping a newflagship vinegar with a partner inColumbus.

Mr. Sawyer, who in April openeda Noodlecat stand at the West SideMarket, said he expects this year togenerate between $4.5 million and$6 million in sales. ■


the station will work to soundCleveland. He has planned a rockand entertainment talk format drivenby a team of about a dozen peoplewho will take to the streets of Cleve-land and put Clevelanders on theair. (What kind of rock is still up inthe air, and yes, he’s open to involvinglocal artists.)

“We just see a need in the market,”Mr. Wilson said. “Radio has becomeso homogenized and corporatethroughout the country that the localism has vanished. What we’redoing is bringing that back.”

The goal is to hire local personal-ities and immerse them at rib cook-offs, county fairs and the like,Mr. Wilson said. He’s in talks withthe Rock and Roll Hall of Fameabout promotions, too.

“We just can’t play music becauseanybody can go anywhere to pickup music,” he said. “Our whole thrustwill be music and entertaining talk.Pandora (Internet radio) and Sirius(satellite radio) don’t blend thosetwo together, and they’re certainlynot local.

“We want to be a station thateverybody talks about at Starbucksin the morning because of our pro-gramming — because it’s different,it’s entertaining and it’s fun,” headded.

Powering up After selling his Cleveland stations

in 1999, Mr. Wilson continued hisbroadcast work in other markets,including Las Vegas, where he andhis partners operate a television station, and in Chicago, where theyrecently leased their radio station toMerlin Media.

Now, his company, Murray HillBroadcasting, holds the license tothe Channel 6 low-power televisionstation and its accompanying 87.7FM radio. (The license has been inMr. Wilson’s hands for several years,just through a different company.)They plan to broadcast what they’redoing on air on television, too,eventually, Mr. Wilson said.

“There’s nothing like launching anew station in your own market,”Mr. Wilson said. “It’s fun to be backin Cleveland to launch a local Cleve-land radio station. All your ties arehere.”

According to the National Associ-ation of Broadcasters in Washington,D.C., there are 13,585 radio stationson air, a number that’s been trendingup for several decades.

Despite some consolidation interms of radio ownership, local owner-operators are not all that unusual,according to Dennis Wharton, exec-utive vice president of communica-tions for the association, which rep-resents roughly 8,000 member radioand television stations. There aresome 3,000 owners of radio stationsin the United States, he estimated.

While he wouldn’t be more spe-cific, Mr. Wilson said he’s spending“significant money” on the equip-ment and salaries needed to getWLFM-LP up and running. He’s inthe process of hiring talent and production staff, as well as accountexecutives who will sell advertisingand develop partnerships.

He’s looking at two locations forthe physical station. While he’s wellaware of the lower overhead costs ofInternet radio — “we could launch

25 Internet radio stations next weekif we wanted” — he said he wants “areal radio station.” The station willstream online, though, so listenerscan pick up the audio from anywhere.

Though he doesn’t know Mr. Wilson or the Cleveland market, Mr.Wharton thinks Mr. Wilson has asolid shot at success.

“Good local radio is no differenttoday than it was 15, 20 years ago,”he said. “The ones that are going to be the most profitable are those thatinvest the time and research in de-veloping talent (and) programmingthat is targeted to the local commu-nity. You just can’t be a jukebox inthe sky and succeed as a local radiostation long term. There are somany options for the listener thatwere not there 15 (or) 20 years ago.

“The unique niche about radio isthat we can have a connection tothe local community that none ofthese satellite (stations) or Pandorashave,” Mr. Wharton added. “So itcan sometimes cost more money tohire news crews and talent that islocal as opposed to running an announcer outside the market, butif they do it right, it can be hugelysuccessful.”

An ‘immediate world’What’s “doing it right,” though?

For one, hiring people who knowthe region, who can name landmarksduring their traffic reports and builda trust with listeners, Mr. Whartonsaid. Mr. Wilson said he’s on it.

Some say the days when localpersonalities shine in locally ownedand operated radio are gone, andMr. Wilson agrees.

“I do — I think radio’s changedcompletely,” he said.

Still, Mr. Wilson’s love of thebusiness clearly remains strong,and he plans to serve listenerseverything but syndicated material.If something happens at 9 a.m.,WLFM-LP will have the capability toimplement something related to itat 9:15.

“That’s the beauty of media: It’san immediate world,” he said. “Ifsomething happens in the market,we can be on the air immediately.”

Craig Karmazin, president andCEO of Good Karma Broadcasting,the Wisconsin-based parent of ESPNCleveland, anticipates the new sta-tion will be “intense” competition.But Mr. Karmazin isn’t sorry to seea new station enter the market. Forone, he expects it to “make the over-all pot bigger” in terms of potentialadvertisers.

And he added, “The real excitementof it for someone in the industry is(we’re getting) a creative, successful,energetic person … who is saying, ‘Iwant to be in radio in Cleveland,Ohio.’ For someone who’s madethat same choice, it’s really exciting.It shows the opportunity that existsin this market.” ■

“The (stations) that aregoing to be the mostprofitable are those thatinvest the time and research in developingtalent (and) programmingthat is targeted to the local community.” – Tom Wilson, radio executive


DON’T BE LEFT BEHINDNever Miss An Issue...

Exclusive offer for CLE flyersSUBSCRIBE TODAY FOR ONLY $49

CrainsCleveland.com/travel

WilliamsMillerDodosh

ShinglerHammondRafferty

ParkSuttellStoessel

Crain’s receives 10 Press Club honorsCrain’s Cleveland Business was

honored with 10 awards, includingsecond place in the category of BestBusiness Publication in Ohio, in thestatewide Excellence in Journalismawards competition presented byThe Press Club of Cleveland.

In the Open Print competitionamong all print publications in Ohio,editor Mark Dodosh won first placein the category of single editorial for“What a waste,” which chastisedelected officials in Columbus forfailing to eliminate tax breaks thatare of dubious economic benefit tothe state. Also, government reporterJay Miller won second place in thecategory of analysis for “Road toturnpike deal may be rough,” whichlooked at the challenge Gov. JohnKasich may face in trying to work adeal to lease the Ohio Turnpike.

Crain’s received three awards forits visual content. Cartoonist RichWilliams won first place in the cate-gory of single cartoon for an editorialcartoon that commented on thechallenges faced by local governmentsin merging services. Also, KathyAmes Carr and graphic artist LaurenRafferty received a second-placeaward for best single-page tabloiddesign and another second-placeaward for best business publicationcover for “Don’t stick a fork in the

Warehouse District just yet,” an illus-tration for a story that looked at thecompetition among restaurants inand around downtown Cleveland.

In the competition among non-daily newspapers, assistant editorJoel Hammond won first place inthe sports writing category for “Thelack of luxury,” which examined theover-abundance of luxury seating atProgressive Field.

In the competition among busi-ness publications, manufacturingreporter Dan Shingler won secondplace in the general news categoryfor “Eaton suit over trade secret theftmay be dead due to improprieties,”which reported on the effects onEaton Corp. of legal missteps in aMississippi court. Also, sections editor Amy Ann Stoessel, managingeditor Scott Suttell, and Messrs.Miller and Shingler received secondplace in the category of featurepackage for “Up in the air,” stories thatlooked at the future of local air serviceand what it might mean for the region.

And in new media, finance reporterMichelle Park received second placein the online general news categoryfor “Kelley & Ferraro LLP files forChapter 11 bankruptcy protection,”whch told the back story of a feudbetween the widow of co-founderMichael Kelley and the firm’s other

namesake partner, James Ferraro.The Business Courier of Cincinnati

won first place in the Best BusinessPublications category in whichCrain’s received second place. ■


Radio: Stations developunique niche in market


Imagine Euclid and Chester avenuesof 40 years ago, staggered by the aftermath of the urban riots of the1960s and wave after wave of out-

migration to the suburbs. Neither road-way was one that drivers were comfort-able on as they commuted to downtown.

There may not be a more dramatic,nearly visceral transformationanywhere in our city than alongthose roadways between down-town and University Circle, andmuch of the credit can go to aneighborhood economic devel-opment corporation that argu-ably is Cleveland’s best: Mid-Town Cleveland Inc.

Recently, I had the privilegeof taking part in MidTown’s annual meeting — its largest todate — something I’ve done for the pastfour years. The change has been remark-able, and if you doubt that, just drive thosetwo streets. If it has been a long timesince you made that trip, you will beshocked by the transformation.

Imagine it’s 1970, and I uttered thisforecast 40 years into the future: Devel-opers would not be able to keep up with

the demand for downtown housing andbusinesses — especially biomedical —would be leading the redevelopment ofEuclid Avenue. Oh, yes, and there wouldbe several blocks of new housing alongChester Avenue near the campuses ofthe Cleveland Clinic and University Hos-pitals. And downtown’s Public Square

and University Circle would beserved by a sleek new bus servicethat looked and felt like a train,complete with pleasant, shinypassenger stations.

Right. Back then, you wouldhave looked at me like I wascrazy. And if you were like mostClevelanders, you had probablygiven up on that stretch of realestate. Not the folks behindMidTown Cleveland, who had a

vision and faith that there was value inthat land in the future. They were right.

Learn about this great success story.You’ll find new pride in what Clevelandhas achieved. And it’s just beginning.

****THE UTICA SHALE NOW is part of our

regular conversation, and certainly is abig part of what we’re planning for this

publication. And it goes way beyond howmuch the big oil players have shelled outfor the mineral rights along our state’seastern border counties.

The fact that Ohio’s shale oil is richwith resources not found in the shaleplays in neighboring states means, forexample, that the plastics businesses thatonce fled to Louisiana may be returningto the state of their origin. Also, as we reported recently, watch for the con-struction of natural gas refilling stations,because it’s likely that big fleet operatorsare already planning their shift awayfrom gasoline.

That’s not some futurist-speak. Re-cently, Dan Shingler, our reporter on theshale beat, wrote about a deal betweenShell Oil and TravelCenters of America tobuild at least 100 natural gas refillingspots at its highway operations.

The world is changing at an incrediblyfast pace.

That’s why we are launching our newShale magazine, which will be deliveredto our readers as well as geo-targeted fi-nancial executives in all the shale states.This is a game-changer, folks, and wewant to be there to tell you the story. ■


Square dealF

rom the early days of this publication, we’veexpressed a desire for a dramatic makeoverof Public Square in downtown Cleveland. It’sheartening to know that Mayor Frank Jackson

is of a similar mind, because the benefits the citycould gain in creating a grand public space in theheart of town could be greater now than at any timein Cleveland’s history.

Cleveland never will be able to develop a publicspace to rival New York’s Central Park. However, areconfiguration of Public Square into one big publicpark or two large rectangular parks rich in greenspace could give a boost to the ongoing transforma-tion of downtown Cleveland into a place where people no longer just work, but, more importantly,now live.

Even city dwellers want a break from concreteand busy streets. A remade Public Square wherethey could enjoy walks with their dogs or the occasional public concert would provide one moreinducement for downtown living, and could en-courage the further redevelopment of empty officebuildings into apartment and condo properties.

A park-like Public Square also would be a welcomelunchtime space for office workers, and could serveas an inviting front door to the city for those visitorsemerging from the Horseshoe Casino or using theRegional Transit Authority’s Red Line rapid transittrain to come downtown from Hopkins airport.

The recent Marine Week activities the U.S. MarineCorps staged in part at Public Square show the energy a large, open public space can producethroughout downtown.

For Marine Week, Public Square was closed atOntario Street and Superior Avenue, which bisectthe square and divide it into four quadrants. Familiesand friends gathered together to climb on a tank,hold a bazooka or talk to the Marines assembled atthe square. They had fun, with many wanderingdowntown’s streets in search of places for lunch ordinner.

Yes, closing the square screwed up traffic thatweek. But we’re confident traffic planners could figure out ways to keep cars and trucks moving if apermanent change was made in Public Square’sconfiguration.

A transportation planning firm hired by MayorJackson’s Group Plan Commission has recommendedthat Public Square be split into two big rectangles by closing Ontario, which runs north-south, butleaving Superior open to east-west vehicular traffic.A study by the planning firm, Nelson Nygaard ofSan Francisco, should serve as an excellent startingpoint for talks among civic leaders of how to proceed with a change at the square.

We’d be disappointed if the status quo winds upwinning out after this review process. Public Squareas it is today isn’t the welcoming, enjoyable place itcould — and should — be. It is too sterile, and it’stoo chopped up to use in an effective manner forbringing people together.

The heart of Cleveland’s downtown is in need ofmajor surgery, and we hope it happens under amayor who sees the need for it as much as we do.

FROM THE PUBLISHER

PERSONAL VIEW

BRIANTUCKER

MidTown’s new look hard to believe

Third Frontier threatened by partisanshipBy RONN RICHARD, TED KALO, DANIELR. CLAYPOOL, ROBERT AUFULDISH and ED FITZGERALD

Since 2002, policymakers acrossthe nation have looked to Ohio’sThird Frontier as a model programto modernize and grow state and

regional economies.They have admired Third Frontier for

successfully leveraging $1 billion of statespending into more than $6 billion of combined federal and private invest-ment. They have admired Third Frontier’sforesight in financing emerging technologycompanies — especially renewable energy — at the early stages of theirgrowth, when funding is most neededand the returns highest. But most of all,policymakers have admired Third Fron-

tier for keeping its decisions untaintedby politics, despite multiple regime changesin Columbus and across the nation. Thisreputation led Ohio voters to support thefunding of Third Frontier twice, most recently with a $700 million bond mea-sure in 2010.

It was a reputation well deserved,gained through well-chosen and activeinvestment activities. In 2011 alone,Third Frontier awarded millions toemerging firms, including, locally, Kent

Displays, a manufacturer of flexible LCD products; CardioInsight, a medical-imaging company with origins at CaseWestern; Akron-based EchoGen for aheat energy recovery system; and Parma’sGrafTech and their graphite-based fuelcell components.

In recent months, the very fundamentalsthat made the Third Frontier a model forthe nation are in jeopardy. Gov. Bob Taftpromised Third Frontier as a nonparti-san initiative, a mission Gov. Ted Strick-land supported and maintained. Thishistory of non-partisanship must continue.

Despite the budding investment oppor-tunities offered statewide by our rapidlydeveloping high-technology sector,there’s concern that — as of this writing— Third Frontier has not released funds

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

Mr. Richard is the president and CEO of theCleveland Foundation. Mr. Kalo is a LorainCounty commissioner. Mr. Claypool is anAshtabula County commissioner. Mr. Au-fuldish is a Lake County commissioner. Mr.FItzGerald is Cuyahoga County’s executive.

See VIEW Page 11



KATHLEEN STEPHENSWestlakeI believe it’s the right thingto do from a safety per-spective. … It’s so temptingwhen you get a text or amessage, and I think it’s aprompt that’s absolutelydriving people to makepoor driving decisions andlack of awareness on theroads.

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

THE BIG ISSUEHow do you feel about the statewide ban on texting while driving?

CHRISTINA FERRONEWestlakeI think it’s critical that wekeep others in mind andeyes on the road.

WILL TARTER JR.BrecksvilleI definitely think it’s an important issue, and Ithink it’s one of thosethings that people can notrealize the impact that texting while driving canhave. … It’s a level of consciousness that needsto be raised among thegeneral public.

LAURIE WALKERAuroraAs the mother of two 20-somethings, I think thereneeds to be somethingdone in terms of safety. …I don’t know if the ban isthe answer to it, but I thinksomething needs to bedone.

BUSINESS TRAVELER APPR ECIATION DAY

2012

At CLE, we’re dedicated to our loyal business customers. Which is why we’ve made Monday, June 25th Business Traveler Appreciation Day. From 6 a.m. – 10 a.m., enjoy special perks, including free copies of Crain’s Cleveland Business magazine. Because at CLE, we make it our business to appreciate your business.

clevelandairport.com

The executive summary for our business traveler appreciation day:

You’re the best.integrateThe new Bellwether Enterprise™ has brought together our local market expertise, national lending relationships and financing structure experience to offer our clients the most extensive multifamily, commercial real estate solutions. With a portfolio of over $5 billion, we pro-vide a variety of loan products for investment real estate placed through a range of institutional investors includ-ing life insurance companies, pension funds, commercial banks, CMBS lenders and government agencies such as FHA, Fannie Mae, Freddie Mac. Call when you need an expert in multifamily and commercial financing.

V I S I O N K N O W L E D G E P E O P L E

www.BellwetherEnterprise.com

RECENT TRANSACTIONS FROM OUR CLEVELAND HEADQUARTERS:

FHA 223(F)84 Unit Garden StyleWADSWORTH, OHIO

$4,635,000

FREDDIE MAC 195 Unit Apartment ComplexMEDINA, OHIO

$7,500,000

LIFE INSURANCE COMPANYRetail Shopping CenterBROOKLYN, OHIO

$10,500,000

FOR MORE INFORMATION CONTACT:

J. Ross Halloran, Jr.Senior Vice [email protected]

Jim DoyleSenior Vice [email protected]

for a project in six months. The fiscalyear ends in June, and while statefunds will roll over, the opportunityto receive supplemental federal fundscould be missed.

Also, the projects being consid-ered stray from the program’s statedmission of fostering early stage entrepreneurship. These worryingtrends call Third Frontier’s hard-earned national reputation intoquestion, and threaten to betray themission approved and funded bythe voters of Ohio.

Recently, the Lake Erie EnergyDevelopment Corp. (LEEDCo) appliedfor a $5 million grant from ThirdFrontier to help fund constructionof an initial set of turbines, sevenmiles off the coast of Cleveland.LEEDCo is the nonprofit organiza-tion tasked with building an offshorewind industry in Lake Erie — thefirst such industry anywhere in theUnited States. This project was ini-tiated by the Cleveland Foundation,NorTech, the city of Cleveland, and

Lake, Lorain, Ashtabula and Cuya-hoga counties, to demonstrate thecommercial potential of wind powerand thereby attract private fundingfor further expansion and research.

Breaking with the Third Frontier’srecord for investing foresight, theprogram denied funding to LEED-Co, despite approval recommenda-tions from outside reviewers for theOhio Department of Developmentand two business representativeson the board. The decision also ignored reports from both privateobservers praising the significantshort- and long-term benefits thispilot program would bring the state.

This pilot project alone would yieldmore than 500 jobs in construction,research and associated fields, withattendant increases in retail spending,tax revenue and housing demand.In the long term, lowered energycosts and a renewable, low-carbonsource of energy provided by LakeErie wind would significantly improveenergy prices and business costs.

Looking beyond the price of elec-

tricity, we must recognize thatLEEDCo’s wind power advances havegiven Northeast Ohio the lead ingrowing an industry. While the nat-ural advantages of Lake Erie’s con-stant, high-energy winds eventuallywill draw investment, the chance tobe the national leaders in offshorewind is unique and temporary.

Receiving financing and supportfrom the Third Frontier Commissioncould help LEEDCo win up to $50million in federal grants it has applied for to help finance construc-

tion of the offshore wind farm.However, the impact of this seem-ingly small project reaches beyondthe tens of millions in additionalfunding it could bring to NortheastOhio; we have within our grasp theopportunity to once again be thecapital of an American industry.

Instead, ignoring the advice ofoutside reviewers and business rep-resentatives, Third Frontier turnedits back on the progress our regionhas made and places in jeopardy theimmense sums of external funding

that could be awarded to Ohio forrelated research, job creation andopportunities for Ohio’s businesses.The commission’s decision representsa worrying departure from an insight-ful and highly successful strategy,and it may signal the reversal of Ohio’srecent strides towards nationaltechnological leadership.

For that reason, we are askingOhio Third Frontier to reconsidertheir tradition-breaking denial andreconsider funding the LEEDCo application. ■

View: Wind project would position region as a national leader continued from PAGE 10

Streetsboro window makermoving Pa. production hereAcquisition opens new markets for Soft-Lite LLCBy GINGER [email protected]

A maker of vinyl replacementwindows and doors based inStreetsboro is moving production ofGorell brand windows to its localplant.

Soft-Lite LLC in March acquiredGorell Windows & Doors, a manu-facturer based in Indiana, Pa.,through a court-ordered receiver-ship sale in Allegheny CommonPleas Court in Pittsburgh. The 294-person company, which now goesby the name Soft-Lite Gorell, is hiring 40 to 50 people to handle theadditional manufacturing output atits 200,000-square-foot Streetsboroplant.

The company also retained Gorell’ssales and customer service employeesand is maintaining Gorell’s retailshop in the town of Indiana.

Roy Anderson, president of Soft-Lite Gorell, said the acquisition ofGorell, which was a major competitorof Soft-Lite, gives the company agreater geographic footprint andvariety of product offerings. He anticipates sales growth of 50%from the acquisition. The companygenerates $50 million to $100 milliona year in revenue.

While Soft-Lite currently servesthe Midwest, Northwest and Atlanticseaboard, Gorell expands that pres-ence to Florida, Texas and othersouthern states. In addition, Gorellmanufactures an impact product —windows and doors designed towithstand high-impact situationssuch as hurricanes — not in Soft-Lite’sportfolio. Mr. Anderson said Soft-Lite also is considering other acqui-sitions that could help grow thecompany, including at least one onthe West Coast. ■



SALT • SALT • SALT• Water Softener• Industrial • Ice Melt • Food

1-800-547-1538Salt Distributors Since 1966

Call For Pricing!! Minimum Delivery: 1Pallet

GOING PLACESJOB CHANGES

CONSTRUCTIONGILBANE BUILDING CO.: Jon Fischer to senior project engineer;Tom Ruminski and Praem Kana-gaRaj to project engineers; JohnCoughlin and Christopher Kowal-czyk to assistant project engineers. GREAT LAKES CONSTRUCTION CO.:Chris Stutz to operations manager.

CONSULTINGHURON CONSULTING GROUP:Geoffrey Frankel to managing director, financial consulting.

EDUCATIONNOTRE DAME COLLEGE: J. ScottSwain to director of athletics. SOUTH UNIVERSITY: Bruce Campbell to dean of academic affairs and operations, Cleveland campus. UNIVERSITY OF PHOENIX CLEVE-LAND CAMPUS: Stephen C. Quickto campus college chair, School ofBusiness. WHITE HAT MANAGEMENT:Maggie Ford to chief academic officer; Joe Weber to chief financialofficer; Pete Zacharias to DELA (Distance & Electronic Learning Acad-emies) controller; Carrie McLain toDELA business manager; StephanieConey to call center coordinator/board relations liaison; Rodd Cokerto vice president, business develop-ment; Roy Berlocker to senior director, procurement and facilities.

FINANCEOHIO COMMERCE BANK: RonaldSchultz to vice president, commerciallender.

FINANCIAL SERVICECEDAR BROOK FINANCIAL PARTNERS LLC: Joshua S. Meldato partner.

HEALTH CARESUMMACARE: Mumtaz Ibrahim,M.D., to chief medical officer.

LEGALBAKER HOSTETLER: Martin T.Booher to partner. BENESCH: Scott E. Swartz to ofcounsel. OGLETREE DEAKINS: Natalie M.Stevens to associate. ULMER & BERNE LLP: Michael T.Tangry to associate. WICKENS, HERZER, PANZA, COOK & BATISTA CO.: Kimrey D.Elzeer, Timothy Pillari, James L.Miller and Christine C. Covey to associates.

MANUFACTURINGEATON CORP.: Kelly Jasko to

SwartzIbrahimMelda

LaRochelleSweeneyWilliams

director of communications, industrialsector.

NONPROFITAKRON CHILDREN’S HOSPITALFOUNDATION: Cheryl Williams todirector, corporate partnerships.

REAL ESTATETRANSACTION REALTY: MichaelSmith to sales associate. WEBER WOOD MEDINGER/CORFAC INTERNATIONAL: KevinRiley to vice president.

SERVICESAFEGUARD PROPERTIES: KellieChambers to assistant vice president,property preservation; Russ Klein toassistant vice president, quality assurance and training; Steve Meyerto assistant vice president, high riskand hazard claims; Travis Andersonto director, vendor management; TimRath to director, property preserva-tion, regionals. TODAY’S BUSINESS PRODUCTS:Dennis Vargo, Paul Kruger andEileen O’Connor to sales associates;Leann Teagno to customer servicerepresentative.

TECHNOLOGYSOFTWARE ANSWERS: RobertSweeney to client services manager,ProgressBook.

BOARDSCUYAHOGA COUNTY NEXT GENERATION COUNCIL: Ludgy A.LaRochelle (Licata & Toerek) tochairman.JUNIOR LEAGUE OF CLEVELANDINC.: Hermione Malone (UniversityHospitals) to president.

AWARDJOHN CARROLL UNIVERSITYALUMNI ASSOCIATION: Robin L.Baum (Zinner & Co. LLP) received theAlumni Medal.

Send information for Going Places [email protected].

Virtual Hold rolling out new productsCallback software movesinto mobile devices, TVsBy CHUCK [email protected]

The next time you need to talk tosomeone at a call center, you maynot need to dial a phone number.

At least not if Virtual Hold Tech-nology LLC’s latest products take off,as the fast-growing Fairlawn companyis in the process of launching soft-ware that would give contact centers away to call you before you call them.

A few banks that already use thecompany’s core technology — whichallows contact centers to call youback instead of putting you on hold— are rolling out mobile applica-tions that use the company’s newConversation Bridge software, and acable company is plugging similarsoftware into apps for both mobiledevices and Internet-connected TVs.

It’s up to Virtual Hold’s clients todevelop the front end of both themobile and TV apps, which allowtheir customers to troubleshootproblems on their own first. VirtualHold’s technology comes into play ifthey need more help; in both themobile and TV apps, end users can

press buttons that tell thecontact center to give thema call as soon as possible.They also can schedule thecall, choosing from a list oftimes generated by VirtualHold’s core software, whichcan estimate how long itwill be before a contactcenter employee becomesavailable.

That employee won’t start fromsquare one. He or she already willknow that the end user has beenthrough the troubleshooting stepsin the app, said Eric Camulli, vicepresident of marketing for VirtualHold, which has 110 employees, upfrom 85 at the start of 2011.

That feature is key, said PaulStockford, research director for theNational Association of Call Centersof Hattiesburg, Miss. His membershave been clamoring for a good wayto connect with customers via mobiledevices, in particular.

“That’s a pretty good first step,”he said.

The new products will be a bigpart of Virtual Hold’s growth plans,said Wes Hayden, who two weeksago was announced as the company’snew CEO.

Mr. Hayden, who replaced Kevin

Sjodin, started consultingwith Virtual Hold to de-velop its product strategyabout a year ago. At thetime, the company alreadywas working to create Conversation Bridge-styletools, and it already offereda call-back button cus-tomers could add to their

websites. Mr. Hayden, however,suggested the company put a biggerfocus on those products.

The mobile app offering is partic-ularly timely; many Virtual Holdclients are developing mobile appsor plan to do so over the next 18months, said Mr. Hayden, who hasled multiple companies related tocontact centers.

Not only has Virtual Hold addedabout 25 employees over the past 18months, but the company has morethan doubled the size of its staffover the past five years, according toCrain’s Cleveland Business’ annuallist of Northeast Ohio software de-velopers. Virtual Hold’s revenueshave grown by an average of 25%each year for the past three years, Mr.Camulli said.

The company expects sales thisyear in the range of $25 million to$30 million. ■

Hayden


Ohio and Monster have teamed up to help big and small businesses match up with the best talent across the state. Ohio Means Jobs uses advanced tools and filters to narrow down your employee search to a manageable number of resumes, saving you time and effort. If you’re looking to hire in Ohio, look no further.

Why search across 50 states when you’re trying to hire in one?

Faster Filters. Better Results.


THE ROSTER


TAX LIENSThe Internal Revenue Service filed taxliens against the following businessesin the Cuyahoga County Recorder’sOffice. The IRS files a tax lien to protect the interests of the federalgovernment. The lien is a public noticeto creditors that the government hasa claim 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 FILEDPGT Construction Inc.9900 York Theta Drive, North RoyaltonID: 20-1054167Date filed: May 22, 2012Type: Employer’s withholdingAmount: $210,481

Diversified Digital Group Inc.6775 Industrial Parkway, North OlmstedID: 34-1942032Date filed: May 8, 2012Type: Employer’s withholding, unemployment, corporate incomeAmount: $192,058

Southwest Cleveland Sleep Center Inc.17900 Jefferson Park Road, Suite102, ClevelandID: 34-1938990Date filed: May 18, 2012Type: Employer’s withholding, failureto file complete returnAmount: $172,736

Hal-Mark Associates Inc. ETS Travel9697 Brookpark Road, ParmaID: 34-1770173Date filed: May 3, 2012Type: Employer’s withholdingAmount: $139,950

Beckett & Chambers Inc.1786 E. 47th St., ClevelandID: 34-1015905Date filed: May 18, 2012Type: Employer’s withholding, unemploymentAmount: $138,122

LIENS RELEASEDAffordable Supply Center Inc.720 E. 152nd St., ClevelandID: 20-3513654Date filed: Feb. 13, 2012Date released: April 17, 2012Type: Employer’s withholdingAmount: $137,303

Al Ihsan School Inc.4600 Rocky River Drive, ClevelandID: 34-1961620Date filed: Jan. 20, 2012Date released: April 10, 2012Type: Employer’s withholding, unemploymentAmount: $11,751

Anegada LLC48 Northfield Road, BedfordID: 20-1703791Date filed: April 30, 2008Date released: April 10, 2012Type: Employer’s withholdingAmount: $59,195

Anegada LLC48 Northfield Road, BedfordID: 20-1703791Date filed: Dec. 1, 2008Date released: April 10, 2012Type: Employer’s withholdingAmount: $21,405

Cleveland Business Consultants LLC526 Superior Ave., E. Suite 1111,ClevelandID: 11-3678151Date filed: Oct. 20, 2011

Date released: April 3, 2012Type: Employer’s withholdingAmount: $389,841

Cleveland Business Consultants LLC526 Superior Ave., E. Suite 1111,ClevelandID: 11-3678151Date filed: Dec. 16, 2011Date released: April 3, 2012Type: Failure to file complete returnAmount: $80,437

CMC Pension Services Inc.3690 Orange Place, BeachwoodID: 34-1448997Date filed: Sept. 2, 2009Date released: April 10, 2012Type: Employer’s withholdingAmount: $28,484

Gellner Engineering Inc.2827 Brookpark Road, ParmaID: 34-1383557Date filed: Nov. 10, 2011Date released: April 17, 2012Type: Employer’s withholdingAmount: $12,163

Head Builders Inc.15293 Sandalhaven Drive, ClevelandID: 34-1437352Date filed: May 12, 2011Date released: April 26, 2012Type: Employer’s withholdingAmount: $23,077

J R Hudak Inc.6465 Pebblecreek Drive, IndependenceID: 34-1675388Date filed: Jan. 24, 2012Date released: April 10, 2012Type: UnemploymentAmount: $13,510

Le Clairs Custom Cabinetry Inc.21706 Lunn Road, StrongsvilleID: 34-1712180Date filed: Nov. 30, 2011Date released: April 17, 2012Type: Employer’s withholdingAmount: $28,967

Pioneer Environmental Systems Inc.20536 Krick Road, Walton HillsID: 06-1682390Date filed: Nov. 29, 2011Date released: April 3, 2012Type: Employer’s withholdingAmount: $10,375

Reeder Properties Inc.1192 Holmden Ave., ClevelandID: 34-1834472Date filed: Nov. 22, 2011Date released: April 10, 2012Type: Employer’s withholding, corporate incomeAmount: $10,998

R J Evans & Assoc Inc.31035 Cannon Road, SolonID: 34-1163720Date filed: Feb. 19, 2009Date released: April 17, 2012Type: Employer’s withholdingAmount: $39,733

Varrsity Constructors LLC23209 Miles Road, Suite A, ClevelandID: 20-5305272Date filed: Jan. 10, 2012Date released: April 3, 2012Type: Employer’s withholding, failureto file complete returnAmount: $12,776

Victory Solutions LLC6505 Rockside Road, Suite 175, IndependenceID: 20-4833667Date filed: Oct. 7, 2011Date released: April 3, 2012Type: Employer’s withholdingAmount: $23,803

Six suburban hotels change ownershipPurchase prices could be key indicator for other properties going forwardBy STAN [email protected]

A portfolio of six suburban Cleve-land hotels, operating under flagssuch as Courtyard and TownePlaceby Marriott, has gained a new ownerin a $44.8 million transaction byBoston-based asset manager Cross-Harbor Capital Partners.

The seller was Ozre Lodging LLC,a New York City-based realty affiliateof the Och-Ziff Capital ManagementGroup LLC, an asset manager for institutional investors. Ozre in 2005bought the hotels for $44.6 millionfrom their original developer, TheRichard E. Jacobs Group of Westlake.

David Sangree, president of theHotel Leisure Advisors consultancy inLakewood, said the virtually unchangedsale price likely indicates the proper-ties are performing today at aboutthe same level as they did in 2005.

As there have been few arms-lengthhotel sales recently in the region —most recent transfers have been distressed sales — the CrossHarborpurchase prices will be important,Mr. Sangree said. They will establishsome basic hotel values in the regionafter the recession, he said.

However, Mr. Sangree said the pricesonly will be one factor, as hotel valu-ations are based on performanceand locations of various properties.

According to Cuyahoga Countyland records, the CrossHarbor affiliate,CIP II Buckeye Hotel Landlord LLC,paid $10.3 million for the CourtyardCleveland Independence, 5051 W.Creek Road in Independence; $9.5million for the Courtyard ClevelandHopkins Airport Hotel, 7345 EngleRoad in Middleburg Heights; and $5million for the TownePlace Suites,7325 Engle Road, also in Middleburg

Heights. The sale also included theCourtyard Cleveland North, 24901Country Club Blvd. in North Olmsted,for $6.4 million.

Two Westlake hotels, the Court-yard and TownePlace at 25050 and 25052 Sperry Drive, respectively,sold for $13.4 million, according to asingle deed transfer for both proper-ties.

A Marriott International spokes-woman said Marriott itself will continue to manage the Courtyardin Independence.

However, the Middleburg Heightsand Westlake hotels will be managedby Sage Hospitality, a Denver-basedhotel management and developmentconcern, according to a June 18 newsrelease from the company.

“Marriott has been an incrediblepartner for Sage Hospitality and welook forward to adding these impor-tant properties to our portfolio,” saidWalter Isenberg, Sage president andCEO, in the news release.

A Sage spokeswoman declined todiscuss the sale of the property orchange in management. A CrossHar-bor spokeswoman declined comment.Ozre officials did not return two callsby deadline last week. ■

The six hotels in suburbanCleveland that have changedownership:

■ Courtyard Cleveland Indepen-dence, Independence

■ Courtyard Cleveland Hopkins Airport Hotel, Middleburg Heights

■ TownePlace Suites, MiddleburgHeights

■ Courtyard Cleveland North,North Olmsted

■ Courtyard, Westlake■ TownePlace Suites, Westlake


Educ

atio

n/lib

rari

ans:

$51

,760

Bus

ines

s/fin

ance

: $63

,790

Con

stru

ctio

n: $

48,3

40

Hea

lth p

ract

ition

ers:

$70

,280

Arch

itect

ure/

engi

neer

ing:

$71

,720

Com

pute

r/m

ath:

$73

,406

Lega

l: $8

5,46

0

MAKINGITAnalyzing how well — or poorly

— Northeast Ohioans are paid

HIGHEST-PAID OCCUPATIONSAccording to research by Veronica Z. Kalich, a professor of economics at Baldwin-Wallace College, these

are the top 10 occupations in Northeast Ohio, ranked by mean annual wage. All values are derived fromdata collected by the Bureau of Labor Statistics from employers in all industry sectors in the Cleveland-

Elyria-Mentor metropolitan statistical area, and are as of May 2011, the most recent available. Thefigures take into consideration both high-paying and low-paying positions in each category.

INSIDE THIS SECTION

$60,

000

$80,

000

100,

0000

120,

0000

$40,

000

$20,

000

Man

agem

ent:

$104

,330

The fields of Northeast Ohio’s employment landscape areblooming with opportunity in engineering, health careand technology. Higher pay in these sectors along withcurrent and future job availability align with national

trends, according to local and national salary and wage data.The region is fertile ground for growth in these occupations,

with a commanding presence of globally oriented health careand technology companies. But, finding qualified people to fillthese positions remains a challenge for employers.

“It appears that demand for positions in engineering, IT andhealth care is being influenced, in part, by a supply shortage fortalent within these fields,” said Marty Mordarski, director ofmembership and research for ERC in Mayfield Village.

By KATHY AMES [email protected]

According to the Bureau of Labor Statistics, the highest-paid positions in NortheastOhio belong to obstetricians

and gynecologists, who earn an annualmean wage of $207,700, followed byphysicians and surgeons at a littlemore than $200,000.

Chief executives earn an average of$198,660, while psychiatrists bringhome $177,000.

Other six-figure professions include:■ Dentists, $163,430■ Architectural and engineering

managers, $119,850■ Computer and information systems

managers, $115,240■ Aerospace engineers, $107,020According to ERC’s membership

survey, specialized engineers in North-east Ohio generate an average medianbase salary of $74,152. Programmersand software engineers come in sec-ond, at $70,349, followed by safetymanagers, at $69,656. The average median base salary of a nurse, anotherhigh-demand occupation, is $68,578.

Registered nurses are in some of thegreatest demand within local healthcare systems. The Cleveland Clinic hasa need for specialty nurses in cardiac,

The human resources organization in Mayreleased its 2012 wage and salary survey data,which provide a snapshot of the current jobsenvironment in Northeast Ohio, includingsome of the highest- and lowest-paying nonex-ecutive occupations.

The 2012 wage and survey information arebased on positions for which ERC surveys; thesurveys don’t cover salaries for occupations

such as surgeons or lawyers.The Bureau of Labor Statistics also provides

comprehensive occupational information forthe Cleveland-Elyria-Mentor MSA, based on2011 annual mean wages, and covers the afore-mentioned positions as well as executive pay.

This section takes a closer look at the region’shigh- and low-paying occupations, based onthese and other sources. — Kathy Ames Carr

AT THE TOP

See TOP Page 18

Life

/phy

sica

l sci

entis

ts: $

59,9

00

Soci

al s

ervi

ces:

$45

,360

HEALTH CARE PRACTITIONERMean annual wage: $70,280

CONSTRUCTIONMean annual wage: $48,340

MANAGEMENTMean annual wage: $104,330

■ A look at the impact of the recession onwages, including the effect of lost jobs andchanges in the employment market. PAGE 16

■ We chatted with area career and college coun-selors to gauge their views on what careers havethe greatest earning potential in Northeast Ohioand outside the region. PAGE 17

■ A look at other factors, including benefits, unions and education, that go into pay. PAGE 19

■ How does Northeast Ohio stack up with otherparts of the country in terms of salaries and costof living? PAGE 20

■ Miscellaneous data, including Northeast Ohio’shighest-paid athletes, and more. PAGE 21

SOURCE: RESEARCH BY BALDWIN-WALLACE ECONOMICSPROFESSOR VERONICA Z. KALICH


1166 CRAIN’S CLEVELAND BUSINESS JUNE 25 - JULY 8, 2012

Did youknow

Another little-known fact:As a COSE member, you’ll receive step-by-step guidance through complex employee benefi t options from our dedicated team members and the experts at Medical Mutual. And that’s just one of the advantages of an annual membership that works out to about $25 a month. Find out how COSE can help your business take the sting out of benefi t selection with a free health insurance quote today.

bees give directions to other bees through dance?

CALL 216.923.0767 OR VISIT COSE.ORG/HEALTHQUOTE2

Health plans insured by Medical Mutual

MAKING IT

Add up recession’s local toll, get $3.6B in lost earningsSalary ‘compression’ in existing work force could keep some pay downBy AMY ANN [email protected]

From 2001 to 2011, CuyahogaCounty lost $3.6 billion inannual earnings.

“That’s an astonishingfigure,” said local economistGeorge Zeller, who provided thestatistics compiled from unemploy-ment tax records. “We were over $4billion before the recent gains. …This recession was very damaging.”

The downturn’s effect on the region’s earnings was multi-faceted,from loss in jobs and changes tothe employment market to adjust-ments in individual wages.

While more recent figures showa reverse in the downward trend inoverall earnings — the county actually gained nearly $672 million

from 2010 to 2011 — Mr. Zellersaid Ohio never really recoveredfrom 2000-02 before heading intothe most recent recession.

“The good news is average earn-ings are actually increasing,” hesaid. “Those are actual real gains.”

Certainly, there are aspects inearnings that may not be reflectedin the numbers, meaning in somecases more people working in a position may be earning less orvice versa.

The seven-county region’s employment numbers also increasedfrom 2010 to 2011, adding 13,145jobs, a 1.1% uptick. In all, 158,189jobs were lost in the same regionfrom 2000-11, an 11.2% drop.

“We want to get the jobs back,and we want to get their wages up,too,” Mr. Zeller said.

Mr. Zeller said the recovery isbeing driven by growth in high-wagemanufacturing jobs. However,public sector cuts are slowingdown the recovery.

“The problem is the recovery is way too slow,” Mr. Zeller said,noting that at the current rate ofrecovery it will take 12 years to recover previously lost jobs in theregion. In Cuyahoga County, thatsame figure is 21 years, andstatewide, it’s nine years.

Recession resultsOf course, jobs and their corre-

sponding wages were not the onlylosses from the recession. Forthose who remained employedduring the downturn, existingearnings often took a hit.

“What we did see was more

across-the-board pay cuts,” saidMarty Mordarski, director of researchand membership at ERC. Additionally,wage freezes and lower salary ad-justments became more common.

For example, actual salary increases in 2001 were 4.4%, according to ERC’s 2011-2012 Wage& Salary Adjustment Survey. Incomparison, that number was 2.7%in 2010 and 2.8% in 2011.

“It was very reactive. … I think itstarted happening before it got really bad,” Mr. Mordarski said.

Mr. Mordarski said industries inwhich there was the most stagnationin terms of wage freezes and cutswere manufacturing, particularlyfor lower-skilled production, maintenance and service positions.In addition, at the height of the recession it was common to seehealth care institutions and non-profits implement wage freezes,cuts and hiring freezes.

Of note, however, is that the dipin salary adjustments is not uniqueto the most recent economic downturn. It also dropped to 2.6%in 2002, hovering at a little over 3%until 2010.

“We saw a big dropoff after2001,” Mr. Mordarski said. “Thathas not changed much really sincethen.”

Katie Talarico, ERC’s surveymanager, said employers last yearstarted moving away from payfreezes. That doesn’t mean, however,that earnings will catch up to wherethey would have been had the recession not occurred.

“It’s very unlikely their employer’sgoing to come back and make upfor that,” Mr. Mordarski said.

To that end, what’s known as“pay compression” is a resultingphenomenon of the recession.While the market calls for increasedpay for new talent, especially forpositions in high demand, salarieswithin the existing work force stillare being negatively affected by theimpacts of past cuts and freezes.

“It puts organizations in a reallychallenging position,” he said.“That happens if you really stagnate.… The best practice is to adjusttheir rates.”

Structural issuesAnother result of the recent

recession is a lot of “structural unemployment,” said Bruce McCain,chief investment strategist at KeyPrivate Bank. A lot of jobs that disappeared simply are not comingback, which in itself is having an effect on some earnings levels.

“This was a harder recession than

most,” Dr. McCain said. “Householdincomes have taken a pretty heavybeating.”

Whole industries permanentlyreduced the number of people theyneed, so the state of being under-employed may have become perma-nent for some. “It was a recessionon steroids,” he said.

Baby boomers felt the brunt of structural unemployment, although Dr. McCain said each generation’s earnings may beaffected in some way by the reces-sion.

Members of Generation X arefacing a “bottleneck,” not havingthe opportunity to rise in pay or position since many Baby Boomersremain in the work force. Millennials,meanwhile, are facing high levels ofdebt and may not have the sameopportunities in term of compensa-tion as their predecessors.

As for household incomes,they’re simply not rising as fast asthey once did, especially as gas,food, college and health care costsincrease, Dr. McCain said. Andwhile it’s a trend that’s been long inthe making, “it’s becoming muchmore excruciating painful for people.”

Still, economist Mr. Zellerstressed that there are positivetrends — and reasons to be hope-ful.

“Earnings are still holding up byand large,” he said. “That’s good,that’s part of the recovery. … Thatmeans this recovery is genuine. ■

UP AND DOWNOn average, Northeast Ohio employersprovided actual pay increases of 2.8%in 2011, according to data from May-field Village human resources firm ERC.A look at past actual and projected payincreases:

Year Actual Projected2011 2.8 2.8

2010 2.7 2.7

2009 3.1 3.3

2008 3.4 3.3

2007 3.5 3.3

2006 3.4 3.3

2005 3.4 3.3

2004 3.6 3.2

2003 3.3 3.0

2002 2.6 3.7

2001 4.4 4.1


JUNE 25 - JULY 8, 2012 CRAIN’S CLEVELAND BUSINESS 17

MY TEAM

MY BENESCH

Cleveland

Columbus

Indianapolis

Philadelphia

Shanghai

White Plains

Wilmington

www.beneschlaw.com

TCP is a world leader in energy-efficient lighting. New technology and legislation

changes their business and their legal needs on a daily basis. Benesch keeps

pace with a team approach ensuring that TCP has everyday access to the entire

breadth of our expertise. As their general counsel, Benesch assists TCP with

everything from contracts and real estate to public affairs and intellectual

property protection.

To learn more about our relationship with TCP, visit beneschlaw.com/myteam

Featured attorneys (left-right): IRA KAPLAN, STEVE AUVIL, MARTHA SWETERLITSCH, JAMES FRIEDMAN, DOUGLAS HAAS, BRYAN JAKETIC, YANPING WANG, MARK AVSEC and ALLAN GOLDNER.

© 2011 Benesch Friedlander Coplan & Aronoff LLP

“We’re moving at the speed of light and Benesch is just as fast.”

ELLIS YANCEO TCP, Inc.

MAKING IT

Job prospects trending up in IT, emerging industriesBy JUDY [email protected]

The notion that there aren’tany decent jobs out theresimply isn’t true, accordingto the area’s college and

career counselors, who say employ-ment — and in many cases earnings— prospects for today’s studentsare good.

And that’s not only the case forthe fast-growing fields of healthcare, information technology andfinancial services, they say, but also for older sectors, such as manu-facturing, and emerging ones, likealternative energy.

“With regards to technology,computer science and informationsciences, we can’t fill all the positionswith the number of students wehave available,” said Carmen Castro-Rivera, director of career services atBaldwin-Wallace College.

The U.S. Bureau of Labor Statisticsforecasts that employment of computer software engineers aloneis expected to increase by 32% nationally between 2008 and 2018,which is much faster than the average for all occupations.

The demand for computer infor-mation managers and computersystems analysts in Ohio will increase13% and 14%, respectively, in thesame time period.

And salaries in information tech-nology are strong. Jody Patterson,career counselor with Kent State’sCareer Services Center, said she hasseen starting salaries in IT-relatedjobs increase 3% in the last year.

“We are talking about startingsalaries well over $50,000, sometimesin the $60,000s,” Ms. Patterson said.Computer information research scientists and actuaries in GreaterCleveland clear more than $100,000,according to Baldwin-Wallace pro-fessor of economics Veronica Kalich.

Such statistics debunk the percep-tion that high-paying IT jobs are outsourced overseas. IT positions re-quiring lots of client and customerinteraction or decision-making orthat have security implications haveremained in the U.S. and are on agrowth curve, Ms. Castro-Rivera said.

Healthy futureNortheast Ohio’s global leadership

in medical care coupled with the aging population’s growing demandfor health care service translates intoample employment opportunities inthe health care field.

The BLS projects the health careand social assistance industry willcreate about 28% of all new jobs, or5.7 million new jobs, in the U.S.through 2018. In Ohio, the demandfor both acute care nurses and clinical nurse specialists will increase 18%, Ms. Patterson said.

Other areas of health care jobgrowth include care support services,such as social workers, which willrise 20% and mental health practi-tioners, which will see a 25% jump.

“The wonderful thing about careersin health care is the pathways thatexist for people who want to enterthe field,” said Patricia Coyne,placement specialist with CuyahogaValley Career Center in Brecksville.“Students can earn certificationwith short-term training in directpatient care fields such as STNA (astate-tested nursing assistant or aid),medical assistant or phlebotomist... find employment and continuetheir career path to become a para-medic or LPN (license practical

nurse), and continue on fromthere to complete an associate degree or bachelor’s degree innursing or allied health.”

Accounting, auditing and relatedfinancial service positions are another bright spot. Ohio is ex-pected to add 16% more account-ing jobs between 2008 and 2018with a similar increase in the num-ber of auditing jobs. The BLSreports that the median annualwage of accountants and auditorswas $61,690 in May 2010.

“In times when things are moreuncertain in terms of the financialpicture, we all want people withexpertise to help manage our insur-ance, retirement planning accountsand investment accounts,” Ms.

Castro-Rivera said. “For corporations,when there is not a lot of moneyfor day-to-day operations, theyneed people who can handle it well.”

Making jobsA local manufacturing resurgence

and the alternative energy industryare expected to provide increasedopportunities for students who getthe necessary expertise.

Liz Walton, adult education director at CVCC, said the grubbymanufacturing jobs of the pasthave given way to clean advancedmanufacturing jobs — many ofwhich are going unfilled as too fewget the training necessary to replaceretiring, experienced workers.

Here in the Cleveland area, CNC

operators, charged with operatingcomputer-control machines or ro-bots in automated manufacturingprocesses, averaged slightly morethan $36,000 a year as of May2010, according to the BLS.

According to Ms. Coyne, not aday goes by that a manufacturerdoesn’t call CVCC looking for amachinist, CNC operator, mainte-nance technician or welder.

Schools like hers provide a rangeof certification programs, but don’thave enough students to meet theescalating demand. “I think manystudents have old-fashioned viewsof manufacturing jobs as dirty, bor-ing or declining. In fact, careers inadvanced manufacturing offer excit-ing opportunities for people inter-

ested in designing and improvingproducts, operating high-tech toolsand machinery, analyzing problemsand coming up with creative solu-tions,” she said.

Going into the unknownOf course, there are other fields

expected to be fruitful here inNortheast Ohio. Dr. Kalich pointedout that legal jobs, along with busi-ness and financial professionalsand health care practitioners, rankhigh both in terms of salary poten-tial and concentration in the area.

It is also impossible to knowwhat new fields or jobs might mate-rialize as a result of new technolo-gies or products. “In 2012, we areseeing a lot of positions related tosocial media that did not even existfour years ago,” said Hilary Flanagan, director of John Carroll’s Center for Career Services. ■


Higher-paying occupations Median salary, 2011-12Specialized engineering $74,152

Programmers/software engineers 70,349

Safety (i.e. risk manager) 69,656

Nursing 68,578

IT analysts 67,044

HIGH- AND LOW-PAYINGNON-EXECUTIVE OCCUPATIONS IN NE OHIO

The average median base salary figure for each occupation was calculated usingdata excerpts from the following surveys conducted by ERC: 2012 ERC SalarySurvey; 2012 ERC Wage Survey; and 2011 ERC Non-Profit Compensation Survey.The salary figure reported for each occupation is an average of median salariesacross applicable job titles from entry level through management level. Executiveand director position types were excluded to prevent skewed averages. ERC’s annual salary and wage surveys report data on hundreds of positions for thousandsof employees. Go to www.ercnet.org for more information.

Lower-paying occupations Median salary, 2011-12Warehouse/distribution laborers $30,577

Misc. production (i.e. painting, coating) 32,483

Administrative support 33,515

Patient/client services 33,910

Assemblers/fabricators 35,712


Commercial & Industrial

+ Business Advisors and Certified Public Accountants

W e understand the unique accounting, tax and business issues that you face.

Our ability to offer strategies that create value let you remain competitive in today’s complex commercial

and industrial arena.

Let our knowledge, experience and expertise be an asset to your company’s operations, management and shareholders.

Christopher Felice Shareholder

■ Cleveland 216.363.0100

■ Canton 330.966.9400

■ Elyria 440.323.3200

maloneynovotny.com

Marcus & Millichap Cleveland is closing more investment sales transactions than any other firm in the Midwest.

Offices Nationwide www.MarcusMillichap.com

To Access the Investment Market, Contact the Market Leader.

Below is a Sampling of Our Recent Listings.

Michael L. GlassVice President/Regional Manager

Cleveland Office(216) 264-2050

[email protected]

Exposure Expertise Results

University Heights, OHJackson, Montor & Wrenford

76 Units$3,125,000

Agents: Michael Barron, Daniel Burkons

Canton, OH Shopping Center

174,353 SF$2,615,000

Agents: Scott Wiles, Erin Patton, Craig Fuller

Canton, OHWendy’s (2)

$1,417,000 / $1,403,000 Agents: Erin Patton,

Scott Wiles, Craig Fuller

Cleveland, OHMultifamily64 Units

$1,450,000Agent: Ben Baker

oncology, research, surgery, criticalcare, and labor and delivery, saidChristine Durigg, director ofstaffing and recruitment.

Engineer employment is healthyat firms such as Cleveland-basedMCPc, a technology solutionsprovider that last year hired 27 engineers to bring to 78 its currentengineer headcount and to 367 itsoverall employment. The majority ofthese occupations are virtualiza-tion-focused, as cloud computingbecomes more ubiquitous.

“When it comes to this type oftalent, companies are challengedwith compensating appropriately,”said Beth Stec, MCPc’s vice presidentof corporate communications andhuman resources.

“We are finding we are compen-sating IT folks and engineers at ahigher rate of growth than othertypes of positions, so if the market istrending toward a two-, three- orfour-percent pay increase, the engineering team gets over doublethat.”

The engineering talent pool is ahighly selective group. Accordingto a March 2012 U.S. News andWorld Report story, the unemploy-ment rate is about 2% for engineers.

Observers see demand for positions that include biomedical,aerospace and automotive — sectors that have or are developingsubstantial roots in Northeast Ohio.

Wickliffe-based Lubrizol isthinking even bigger because thespecialty chemicals company nowis owned by Warren Buffett’s Berkshire Hathaway Inc. Its recentacquisition strategy outlines a planto reach $10 billion in sales, and itplaces an emphasis on acquisitions forLubrizol’s advanced-materials unit.

Tom Tomasula, director of globaltalent acquisition at Lubrizol, saidhe expects the company will needto hire more chemists and chemicaland mechanical engineers.

Of course, there’s also recruitingfor specialized jobs that, at the get-go, don’t offer much compensation.

When Robert Hatta, vice presidentfor entrepreneurial talent at Jump-Start Inc., seeks candidates to fillpositions at early stage companiesand startups, he seeks a highly targeted, exclusive group.

“It’s not for everyone, but youoffer something special: a chanceto play a critical, high-impact rolein delivering an innovative newproduct to market and (potentially)creating significant wealth in theprocess,” Mr. Hatta said. “Thetradeoff between shorter-termlower compensation is the longer-term potential in stock options.”

The right individuals not onlyneed specific technical skills, butmust have the right personality.

“It’s hard to find people who do,and have demonstrated the desire totake risks in job security and com-pensation,” Mr. Hatta said.

The venture development organization recruits nationally,although Mr. Hatta and otherswork closely with talent attractiongroup Global Cleveland, the North-east Ohio Software Associationand local colleges and universitiesto source regional talent.

A shortage in qualified employeesis a concern among technology industry professionals, and NortheastOhio is not unique.

“It’s worse in Seattle, San Jose …the tech meccas,” Mr. Hatta said.“The shortage here could easily beaddressed with an open-minded,aggressive approach toward

MAKING IT


Top: Pay at startups lower initially, but jobs offer return

recruiting, where companies trainemployees or graduates.”

At the bottomFood preparation and related

service positions are on the otherend of the spectrum, with annualmean wages not much higher than afull-time minimum wage income.

According to the Bureau of Labor Statistics’ May 2011 look atthe Cleveland-Elyria-Mentor area,dishwashers and lifeguards earn just

under $18,000 a year. Fast-foodcooks, restaurant hosts and host-esses and cooks are paid in the$18,000 to $19,000 range. Homehealth and personal care aides earnannual salaries in the low $20,000s.

Other lower-paying occupationsinclude:

■ Child care workers, $22,660■ Funeral attendants, $23,280■ Veterinary assistants, $23,410■ Preschool teachers, except

special education, $23,650

According to ERC’s membershipsurvey, jobs that fall into the lowest-paying categories are found inwarehouse, production, adminis-tration and client/patient services.

Many of these jobs have low edu-cation and skill requirements withhighly repetitive duties, accordingto ERC, although exceptions are inthe social and human services areas.

Education and social work payabout $10,000 more than manuallaborers and production workers,whose average median base salariesare in the low $30,000s.

Of course, even lower incomelevels strain an estimated 39,000families, or 12.2% of CuyahogaCounty’s population, who have annual income levels below $15,000,according to the U.S. Census Bureau’s2010 American Community Survey.

Many of these workers no doubtrely on minimum-wage jobs in sec-tors such as food service or retail.These positions typically rely onweekly schedules, so workers oftenaren’t guaranteed 40-hour work weeks.

A working adult supporting a family and earning $7.70 an hourmeans he or she likely needs tochoose between basic needs such asfood, child care, health care, quality housing or reliable transportation,said Emily Campbell, WilliamsonFamily Fellow for Applied Researchat the Cleveland-based Center forCommunity Solutions, a researchand advocacy group on health, socialand economic conditions.

“However, a parent earning mini-mum wage makes so little that theirfamily would probably qualify forpublic assistance like food stamps,Medicaid or housing assistance,” sheaid. “But it’s very difficult to live onminimum wage, earning $16,000 ayear.” ■


ERC is Northeast Ohio’s leading provider of compensation and benefits data.Salary, wage and benefits data for thousands of positions locally, regionally and nationally.

# 6 7

Join today and receive free access to all current ERC survey data.www.ercnet.org/comp | 440/684-9700

Professional -- HonestTo The Point

• Executive Search• Professional Placement• Consulting

Action Management ServicesEarning the trust of Northeast Ohio professionals

for over 30 years.

6055 Rockside Woods Blvd. Cleveland, OH 44131216-642-8777

www.actionmgmt.com

TAKE ACTION TODAY!

ACTIONManagement ServicesACTION


Many factors play into compensation Benefits, unions, degreesall are part of formula

By KATHY AMES [email protected]

The compensation formulacan be tricky, as considera-tions beyond skill and expe-rience factor into the wages

and salaries of Northeast Ohioans:

■ Employers with benefits:Bonuses, stock options, health insurance and sick days are just someof the benefits employers offer beyondsalary. Perhaps tuition reimburse-ment, retirement contributions orprofit sharing also are part of thepackage. No matter the mix, organi-zations offer benefits as a way to recruit, retain and reward employees,although they come at a cost.

About 25% of an organization’stotal budget is allocated towardcompensation, while an additional8% is directed toward benefits, according to Mayfield Village-basedERC’s 2012 Turnover and HR Depart-ment Practices Survey. Non-manu-facturers in general spend more oftheir total budgets on compensationand benefits, though in some sectorssuch as nonprofit and governmentwork, more emphasis may beplaced on benefits because of certainrestrictions such as union contractsthat control salary levels.

■ Does it pay to be in a union?:Whether nonunion workers arepaid less than unionized workersdepends on a lot of factors, saidMarty Mordarski, director of membership and research at ERC. Aunion worker may be paid a highergross rate, but depending on thesize of the union dues, he or shemay take home less pay than anonunion employee. However,union workers’ total compensationin some cases may be higher.

According to 2011 national datafrom the Bureau of Labor Statistics,the union membership rate of theU.S. work force was 11.8%, essentiallyunchanged from 11.9% in 2010.More than half of the 14.8 millionunion members in the UnitedStates lived in seven states, includingOhio, where membership wasabout 600,000.

In 2011, union members had median weekly earnings of $938,while those who were not unionmembers had median weekly earnings of $729.

■ A degree’s worth: With thecost of education skyrocketing inrecent years, the value of a collegeor advanced degree has been calledinto question. But as 2011 BLS datashow, the more educated you are,the likelier you are to generate aheftier income.

The average median weekly earn-ings in 2011 were $797. Individualswith a high school diploma earned$638. Employees with a bachelor’sdegree made about $1,053 eachweek, while workers with master’sdegrees were paid $1,263. Those withdoctorates earned $1,551 per week.

Unemployment among individualswithout a high school diploma was14.1%, and 9.4% for those with ahigh school diploma. The joblessrate among those with bachelor’sdegrees was 4.9%; 3.6% for peoplewith master’s degrees; and 2.5% forindividuals with doctorates.

MAKING IT

■ Gender: It’s difficult to trackgender and salary equality in theworkplace because so many factors, including education andexperience, are tied to compensa-tion and benefits. But ERC’s TopPerformer survey offers a glimpseinto one way that gender may factor into the work force.

The survey was completed bytop-performing employees atNortheast Ohio organizations applying for the NorthCoast 99Award from 2009 to 2011.

In general, more women areworking in lower-paying positionsthan men. For example, manage-ment and supervisory roles andtechnical and engineering rolestypically pay more than office,

administrative, and health and human services jobs.

“From an HR perspective, thereare so many factors to considerwhen establishing pay, it doesn’teven make sense to consider nonperformance-related consider-ations like your shoe size, hair color or race and gender. Why limit your ability to employ thebest people?” said Mr. Mordarski,noting that it’s unlikely employerspurposefully are factoring genderinto their hiring practices.

“If an employer isn’t providingpay that matches the needs of thetalent that they need to be suc-cessful, that organization is goingto struggle to attract and retain toptalent, period,” he said. ■



WE ARE ROETZEL.

C L E V E L A N D

National Law

Journal

ralaw.com/cleveland

Cleveland | 216.781.1212 | www.walterhav.com

For nearly 80 years, Walter Haverfield attorneys have set high standards for

client service and satisfaction. We set ourselves apart from the competition by

providing our clients with creative solutions designed to minimize risk and

maximize opportunities. We've established a reputation for results.

If your current law firm isn't providing you with the necessary insights and

guidance to reach new heights, perhaps it's time to look for a new one.

What do you look for in a law firm?

Established reputation.

COST OF LIVING COMPARISONSExperts say that Cleveland’s cost of living should be factored in when comparingsalaries to those offered elsewhere. While Cleveland’s cost of living is comparableto some of its Midwest neighbors, it’s much lower than what might be found on thecoasts. (On the chart, 100 is the national average.)

Category Cleveland Pittsburgh Los AngelesOverall 90 87 147

Grocery 111 106 108

Health 106 98 108

Housing 46 47 248

Utilities 101 101 109

Transportation 101 113 111

Miscellaneous 110 97 106

SOURCE: SPERLING’S BESTPLACES.NET

When pitching Cleveland, recruiters tout cost of livingSalaries often don’t stack up to other citiesBy JENNIFER [email protected]

In the fight for fresh talent, consider Margy Judd to beNortheast Ohio’s closer.

As CEO of Executive Arrange-ments, it’s Ms. Judd’s job to help herclients — heavy-hitting local employers like the Cleveland Clinic,American Greetings and Eaton Corp.— sweeten the deal for out-of-townjob candidates with an enticingglimpse of life in Northeast Ohio.

By digging into the interests of thecandidate and his or her family, Ms.Judd and her team of guides createcustomized tours of the city, visitingschools, sampling restaurants, tour-ing cultural institutions and brows-ing desirable communities.

“We’re usually asking them toleave the biggest cool cities in thecountry,” said Ms. Judd, who claimsan 80% success rate. “If we can tapinto the things that make them tickas a family, we can figure out ifNortheast Ohio will work for them.”

Salary numbers alone often don’tfavor Northeast Ohio’s job market inthe competition against other cities.

It’s the work of recruiters, employersand city cheerleaders like Ms. Juddto bring the Cleveland area to thetop of a potential employee’s heap.

Who’s the competition?Ms. Judd can cite examples of

helping her clients land talentfrom far-flung places such as SanFrancisco, San Antonio, New YorkCity and even Tokyo.

But results like that aren’t typical,said Mike Milby, president andCEO of executive recruiting firmRatliff & Taylor.

“It’s always hard to recruit offthe coasts,” he said. “Our majorcompetition (for talent) would besimilarly situated cities whose economic base is similar to ours.”

Judging solely by numbers,Cleveland’s compensation perfor-mance against national and regionalcompetitors isn’t impressive.

Our mean annual salary acrossprofessions of $43,690 is 3% lowerthan the national mean annualsalary, according to May 2011 Bu-reau of Labor Statistics data, which analyzes the Elyria-Cleveland-Mentor metropolitan statistical area.

figures in perspective.“There’s an assumption that if

you work in Cleveland you will getpaid less than if you were to workin Chicago,” Mr. Milby said. “Butwhat you can do with those dollarsis demonstrably higher than whatyou can do in Atlanta or Chicago.”

Numbers in perspective tell abrighter story. Cleveland ranked16th on this year’s Forbes “20 MostAffordable Cities” list, down fromNo. 8 last year, and it was one offour Ohio cities to make the list.Cleveland’s Consumer Price Indexof 215.6 is 6% lower than the national average of 229.8.

Ms. Judd also points clients tosalary calculators like that at Sper-ling’s BestPlaces.net, which incor-porates data on salaries, home

prices, crime, health care expendi-tures and more to create a cost ofliving analysis. That site givesCleveland a cost-of-living score of90 — with 100 as the national average — as compared to 105 inAtlanta, 116 in Chicago, 159 in NewYork City and 185 in San Francisco.

Ms. Judd says cost of living is thetop factor in making a client choosea job in Cleveland, combined withwhat she calls the low-hassle factor— shorter commutes, less trafficand easy accessibility by air.

“Our relative weakness is nothingmore than the unfortunate reputa-tion Cleveland has outside ofNortheast Ohio,” Mr. Milby said.“But one of our greatest strengthsis that once people are here, theydon’t want to leave.” ■

MAKING IT

Looking more closely by occupa-tion, a registered nurse makes 6%less than the national average, achemical engineer 12% less, and achief executive 3% less. On the lower end of the pay scale, cashiersmake 5% less than the national average, telemarketers 22% less,and personal trainers 12% less.

National survey data collected bythe Economic Research Institute inRedmond, Wash., look more closelyat how we fare against our competi-tion cities. Occupations like CFOs,secondary school teachers and soft-ware engineers make slightly morehere than in Columbus and Pitts-burgh, but less than their colleaguesin Detroit and Chicago.

“If you look at those numbers ina vacuum, it’s not a fair comparison,”says Marty Mordarski, director ofresearch and membership for theEmployers Resource Council, whichconducts local salary surveys. “Oneof the strong advantages Clevelandhas is that its cost of living is signifi-cantly lower than other areas.”

Quality of life, quantity of dollarsIt’s the job of recruiters like Mr.

Milby — who estimates that 30% to40% of his candidates are from out-side of Northeast Ohio — to put such



You were expecting brisket, maybe?

Or over-roasted chicken? Try Rock Cornish Hen with Cranberry Glaze. Or Seafood Spinach Fennel Salad. Even better, try adjusting your expectations

of Senior Living – at least as we do it at Menorah Park. Our amenities are as unexpected as our chefs’ new Signature menu. Every week night, you and

your family can enjoy dishes like this in any of our campus buildings, from senior apartments to assisted living, rehab and nursing care. For more

information about our services (or the Braised Osso Bucco), call 216.831.6500.

R.H. MYERS APARTMENTS | WIGGINS PLACE | STONE GARDENS | MENORAH PARK NURSING HOME | MARCUS POST-HOSPITAL REHAB CENTER

� �Lemon

Basil Salmon

MAKING IT

THISANDTHAT

NORTHEAST OHIO ’SHIGHEST-PAIDATHLETES

A look at Cleveland’s top-earningpro athletes, with salary figuresused from either current or nextcompensation year:

■■ DEREK LOWE, pitcher, ClevelandIndians: $15 million (the Atlanta Braves,who traded Lowe to Cleveland, pay$10 million of his 2012 salary)

■■ TRAVIS HAFNER, designated hitter, Indians: $13 million

■■ JOE THOMAS, offensive lineman,Cleveland Browns: $10.5 million

■■ ANDERSON VAREJAO, forward,Cleveland Cavaliers: $8.4 million

■■ AHTYBA RUBIN, defensive lineman, Browns: $7.7 million

■■ LUKE WALTON, forward, Cava-liers: $6.1 million

■■ JOE HADEN, cornerback,Browns: $5.8 million

■■ KYRIE IRVING, guard, Cavaliers:$5.5 million

■■ GRADY SIZEMORE, outfielder, Indians: $5 million

■■ SHIN-SOO CHOO, outfielder, Indians: $5 million

■■ DANIEL GIBSON, guard, Cavaliers: $4.8 million

■■ ASDRUBAL CABRERA, infielder, Indians: $4.6 million

■■ CHRIS GOCONG, linebacker,Browns: $4.5 million

SOURCES: COT’S BASEBALL CONTRACTS; HOOPSHYPE.COM; SPOTRAC.COM

ON THE DOTTED LINEAn ERC/NOCHE survey recently report-ed average signing bonuses offered torecent grads.

Industry Avg. bonusManufacturing $2,583

Non-manufacturing $2,000

Nonprofit n/a

All organizations $2,350

Org. size Avg. bonus1-50 n/a

51-250 $1,833

251-500 $2,500

Over 500 $4,333

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

■ Small Business Report: Aweekly guide to small businessnews

SIGN UP NOW AT:CrainsCleveland.com/register

■ Crain’s on Twitter: @CrainsCleveland

■ Crain’s on Facebook: Facebook.com/CrainsCleveland

GET DAILY NEWS ALERTSFROM CRAIN’S!

GRADUATE PAYThe 2012 ERC/NOCHE Intern & Recent Grad Pay Rates & Practices Survey alsoindicated pay levels for recent college graduates with common degrees

Degree No. of grads Avg. salaryBusiness/marketing, associate 4 $31,093

Information technology, associate 3 $37,000

Accounting, bachelor’s 11 $36,912

Business administration, bachelor’s 5 $35,880

Chemistry, bachelor’s 5 $39,833

Computer science, bachelor’s 17 $50,000

Engineering, bachelor’s 81 $51,455

Oral surgeons, orthodontists $166,400 or more

Chief executives $165,080

Dentists $161,020

Judges/magistrates $119,720

Architectural/engineering managers $119,260

Prosthodontist $118,400

Podiatrists $118,030

HIGHEST-PAYING OCCUPATIONS NATIONALLYThe Bureau of Labor Statistics tracks salary data from occupations nationwide; alook at those occupations and their 2010 median pay:

Occupation 2010 median pay



HIGHEST PAID CEOSRANKED BY 2011 COMPENSATION

RankExecutive (Age)Company

Totalcompensation

20112010 % change Salary Bonus Stock awards Option awards

Nonequityincentive plan

Change inpension value

All othercompensation

Company netincome in

2011(millions)

Company netincome %

change from2010

1 W. Nicholas Howley (59)TransDigm Group Inc.

$20,665,146$10,955,780 88.6 $690,000 $1,000,000 $0 $17,855,610 $0 $0 $1,119,536 $244.6 95.2

2 Anthony J. Alexander (60)FirstEnergy Corp.

$18,328,895$11,627,657 57.6 $1,340,000 $0 $9,135,872 $882,829 $2,872,416 $4,028,743 $69,035 $885.0 19.3

3 Alexander M. Cutler (60)Eaton Corp.

$13,586,010$12,798,596 6.2 $1,203,000 $0 $2,438,434 $2,267,902 $4,458,058 $3,115,441 $103,175 $1,350.0 45.3

4 Donald E. Washkewicz (62)Parker Hannifin Corp.

$12,955,520$17,312,616 (25.2) $1,155,000 $0 $4,361,877 $2,928,118 $2,785,554 $1,513,284 $211,687 $1,109.6 30.0

5 James W. Griffith (58)Timken Co.

$12,856,522$7,711,127 66.7 $1,058,334 $0 $1,098,020 $2,630,760 $4,624,356 $3,283,000 $162,052 $454.3 65.3

6 Richard J. Kramer (48)Goodyear Tire & Rubber Co.

$12,223,070$10,134,391 20.6 $1,000,000 $0 $683,230 $1,829,996 $6,751,400 $1,899,524 $58,920 $343.0 NM

7 Glenn M. Renwick (56)Progressive Corp.

$9,615,767$9,605,558 0.1 $750,000 $0 $7,500,007 $0 $1,237,500 $0 $128,260 $1,015.5 -4.9

8 Stephen D. Newlin (59)PolyOne Corp.

$8,433,326$7,511,135 12.3 $946,538 $0 $1,285,508 $1,282,148 $4,088,859 $520,514 $309,759 $172.6 6.2

9 Christopher M. Connor (55)Sherwin-Williams Co.

$8,150,048$7,735,200 5.4 $1,221,987 $0 $2,774,922 $2,212,752 $1,508,000 $0 $432,387 $441.9 -4.5

10 Thomas W. Swidarski (53)Diebold Inc.

$7,047,263$5,531,245 27.4 $840,000 $0 $2,408,475 $1,522,800 $1,000,000 $1,075,308 $200,680 $144.8 NM

11 Frank C. Sullivan (50)RPM International Inc.

$6,900,209$5,434,034 27.0 $850,000 $0 $3,104,310 $1,750,000 $1,020,000 $63,915 $111,984 $203.5 13.5

12 Alfred M. Rankin Jr. (70)Nacco Industries Inc.

$6,733,740$10,531,524 (36.1) $1,217,000 $0 $1,426,409 $0 $1,589,048 $1,871,523 $629,760 $162.1 103.9

13 Joseph A. Carrabba (59)Cliffs Natural Resources Inc.

$6,437,179$5,595,592 15.0 $955,500 $0 $3,104,793 $0 $1,880,410 $446,046 $50,430 $1,619.1 58.8

14 Paul G. Greig (56)FirstMerit Corp.

$6,363,713$5,510,259 15.5 $791,250 $0 $1,999,995 $0 $1,400,000 $1,923,463 $249,000 $119.6 16.2

15 John M. Stropki (61)Lincoln Electric Holdings Inc.

$6,148,538$4,967,208 23.8 $828,000 $0 $877,730 $935,023 $2,514,766 $965,281 $27,738 $217.2 66.8

16 Richard K. Smucker (63)J.M. Smucker Co.

$5,488,384$7,977,283 (31.2) $853,000 $17,060 $2,475,000 $0 $1,053,500 $1,032,317 $57,507 $450.5 -10.8

17 Joseph M. Scaminace (58)OM Group Inc.

$5,026,819$4,623,249 8.7 $945,120 $0 $1,265,692 $1,102,520 $1,598,198 $14,211 $101,078 $37.9 -54.5

18 Beth E. Mooney(1) (56)KeyCorp

$4,955,665$2,449,276 102.3 $1,265,339 $0 $1,428,828 $1,179,843 $958,800 $5,290 $117,564 $920.0 66.1

19 Edward F. Crawford (72)Park-Ohio Holdings Corp.

$4,632,634$1,997,153 132.0 $750,000 $0 $1,567,500 $0 $1,476,520 $336,575 $502,039 $29.4 93.8

20 James F. Kirsch (54)Ferro Corp.

$4,621,676$4,742,543 (2.5) $907,000 $0 $833,800 $2,450,550 $136,050 $0 $294,276 $31.6 455.4

21 David J. LaRue(2) (50)Forest City Enterprises Inc.

$4,530,441$2,375,299 90.7 $561,683 $0 $1,239,992 $719,999 $1,935,000 $6,851 $66,916 ($86.5) NM

22 Michael F. Hilton (57)Nordson Corp.

$4,515,269$4,139,840 9.1 $700,000 $0 $1,146,150 $859,250 $1,400,000 $329,825 $50,044 $214.8 14.7

23 Craig S. Shular (59)GrafTech International Ltd.

$3,820,307$3,333,873 14.6 $762,500 $0 $2,180,691 $769,600 $0 $25,891 $81,625 $153.2 -12.3

24 Joseph M. Gingo (66)A. Schulman Inc.

$3,728,371$4,688,808 (20.5) $810,000 $0 $2,168,163 $0 $615,600 $0 $134,608 $47.3 -5.5

25 Samuel F. Thomas (60)Chart Industries Inc.

$3,716,444$2,515,730 47.7 $650,000 $0 $946,971 $799,269 $1,181,895 $0 $138,309 $44.1 118.6

26 Gerald B. Blouch (65)Invacare Corp.

$3,653,640$3,204,967 14.0 $850,000 $0 $645,480 $969,149 $776,730 $301,289 $110,992 ($4.1) NM

27 Kevin M. McMullen (51)Omnova Solutions Inc.

$3,458,268$3,729,815 (7.3) $690,727 $882,000 $692,125 $0 $1,026,327 $90,027 $77,063 $9.7 -90.4

28 Richard J. Hipple (59)Materion Corp.

$3,402,061$3,674,956 (7.4) $754,038 $0 $798,222 $825,998 $813,158 $206,712 $3,933 $40.0 -13.9

29 Zev Weiss (45)American Greetings Corp.

$3,229,672$3,881,709 (16.8) $980,740 $0 $648,543 $0 $996,039 $544,215 $60,135 $57.2 -34.3

30 Walter M. Rosebrough Jr. (58)Steris Corp.

$3,052,301$3,019,503 1.1 $750,000 $0 $1,115,450 $534,359 $555,900 $0 $96,592 $130.9 211.0

31 John C. Corey (64)Stoneridge Inc.

$2,863,853$3,714,673 (22.9) $700,000 $0 $2,088,904 $0 $0 $0 $74,949 $49.4 328.1

32 Thomas M. O'Brien (45)TravelCenters of America LLC

$2,607,250$2,344,100 11.2 $300,000 $1,400,000 $907,250 $0 $0 $0 $0 $23.6 NM

33 Daniel B. Hurwitz (48)DDR Corp.

$2,604,345$4,023,359 (35.3) $616,000 $0 $0 $0 $1,934,240 $0 $54,105 ($15.9) NM

34 Jeffrey I. Friedman (60)Associated Estates Realty Corp.

$2,598,907$3,301,317 (21.3) $500,000 $0 $1,050,000 $0 $795,200 $101,977 $151,730 $5.3 NM

35 Steven L. Gerard (66)CBiz Inc.

$2,501,825$2,156,012 16.0 $675,000 $168,500 $489,060 $423,000 $445,500 $0 $300,765 $28.0 14.3

36 Robert G. Ruhlman (55)Preformed Line Products Co.

$2,361,450$2,370,100 (0.4) $688,500 $0 $688,500 $0 $688,500 $0 $295,950 $31.0 34.1

37 Matthew A. Ouimet(3) (54)Cedar Fair LP

$2,346,135N/A N/A $400,685 $416,712 $1,500,000 $0 $0 $0 $28,738 $72.2 NM

38 Michael D. Siegal (59)Olympic Steel Inc.

$2,287,697$970,843 135.6 $750,000 $0 $755,175 $0 $529,259 $0 $253,263 $25.0 1,071.2

39 John C. Orr (61)Myers Industries Inc.

$2,159,976$2,210,527 (2.3) $725,000 $990,623 $387,840 $0 $0 $0 $56,513 $24.5 NM

40 Marc A. Stefanski (57)TFS Financial Corp.

$1,882,444$3,244,812 (42.0) $1,080,000 $0 $0 $0 $574,668 $127,693 $100,083 $25.1 NM

RESEARCHED BY Deborah W. Hillyer



GREAT RATES & MOST CURRENT TERMS ARE AVAILABLE, SUBJECT TO CREDIT APPROVAL & PROGRAM TERMS

216.359.5597

$250,000 24 HOUR DECISION*

24 HOURS FROM TIME ALL INFORMATION REQUIRED TO MAKE A CREDIT DECISION HAS BEEN RECEIVED. EXCLUDES WEEKENDS AND HOLIDAYS.

*

Does your business or medical practice

need up to

LIBERTYBANKNA.COM

RankExecutive (Age)Company

Totalcompensation

20112010 % change Salary Bonus Stock awards Option awards

Nonequityincentive plan

Change inpension value

All othercompensation

Company netincome in

2011(millions)

Company netincome %

change from2010

41 Theodore K. Zampetis (67)Shiloh Industries Inc.

$1,136,964$318,785 256.7 $481,250 $0 $0 $220,925 $408,346 $0 $26,443 $8.9 81.9

42 David W. Michelson (54)National Interstate Corp.

$894,854$913,469 (2.0) $390,000 $0 $0 $0 $479,825 $0 $25,029 $35.6 -9.8

43 James O. Miller (59)First Citizens Banc Corp.

$532,116$367,411 44.8 $293,846 $0 $0 $0 $0 $233,000 $5,270 $4.0 NM

44 Gil Van Bokkelen (51)Athersys Inc.

$457,120$453,111 0.9 $404,500 $40,000 $0 $0 $0 $0 $12,620 ($13.7) NM

45 Daniel E. Klimas (53)LNB Bancorp Inc.

$424,375$621,771 (31.7) $400,000 $0 $0 $0 $0 $0 $24,375 $5.0 -6.8

46 Patrick W. Bevack (65)United Community Financial Corp.

$419,421$315,788 32.8 $306,958 $0 $0 $80,400 $0 $0 $32,063 $0.2 NM

47 John S. Gulas (53)Farmers National Banc Corp.

$398,331$488,844 (18.5) $275,603 $0 $0 $0 $108,288 $7,350 $7,090 $9.2 2.5

48 Robert J. King Jr. (56)PVF Capital Corp.

$395,371$731,259 (45.9) $300,000 $0 $0 $73,500 $0 $0 $21,871 ($7.9) NM

49 Thomas G. Caldwell (54)Middlefield Banc Corp.

$358,448$356,196 0.6 $265,239 $52,650 $0 $4,375 $0 $0 $36,184 $4.1 64.1

50 Rick L. Hull (59)Ohio Legacy Corp.

$340,458$641,339 (46.9) $225,000 $100,000 $0 $0 $0 $0 $15,458 $1.8 NM

51 Michael S. Lipscomb(4) (65)Sifco Industries Inc.

$304,000$263,800 15.2 $0 $0 $29,000 $0 $0 $0 $275,000 $7.4 63.1

52 Joseph G. Kaveski (51)Energy Focus Inc.

$302,224$308,385 (2.0) $225,000 $0 $0 $76,002 $0 $0 $1,222 ($6.1) NM

53 Ronald E. Klingle (64)Avalon Holdings Corp.

$260,000$175,000 48.6 $160,000 $100,000 $0 $0 $0 $0 $0 $0.8 NM

54 Steven Tsengas (74)OurPet's Co.

$209,678$224,564 (6.6) $203,462 $0 $0 $4,050 $0 $0 $2,166 $0.1 -87.7

55 Rodney C. Steiger(5) (63)Wayne Savings Bancshares Inc.

$200,078N/A N/A $192,308 $0 $0 $0 $0 $0 $7,770 $1.7 -21.4

56 Eloise MackusCentral Federal Corp.

$182,800$190,762 (4.2) $180,000 $100 $0 $0 $0 $0 $2,700 ($5.4) NM

57 Leonard R. Stein-Sapir (73)Morgan's Foods Inc.

$141,622$150,522 (5.9) $121,154 $0 $0 $0 $0 $0 $20,468 ($2.2) NM

58 Robert L. Bauman (71)Hickok Inc.

$102,074$131,354 (22.3) $101,858 $0 $0 $0 $0 $0 $216 ($0.5) NM

Source: Company proxy statements. 2011 net income and net income % change provided by S&P Capital IQ, www.spcapitaliq.com. Crain's Cleveland Business does notindependently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted informationor clarifications in coming issues. The Book of Lists and enhanced versions of most lists, with more companies, are available to purchase at www.crainscleveland.com.(1) Ms. Mooney was named chairman and CEO effective May 1, 2011.(2) Mr. LaRue was named president and CEO on June 10, 2011.(3) Mr. Ouimet joined Cedar Fair as president on June 20, 2011. He became the CEO on Jan. 3, 2012.(4) Mr. Lipscomb is retained on a contract/consultancy basis.(5) Mr. Steiger was named president and CEO on Jan. 15, 2011.

RESEARCHED BY Deborah W. Hillyer

Mobile: App access part of policies To download or not to download

Using a company device to streamPandora or watch movies on Netflixafter work is fine so long as employersaren’t stuck with data charges after-ward, said Revol’s Mr. Bryson, whoused to work for Vox Mobile andbriefly worked for Good Technology.

“There’s got to be something inthe policy to call that out,” he said.

Some company policies specifywhich applications employees canand cannot download, said NateKurash, account executive for BennettAdelson, an IT services firm andmobile software developer in Inde-pendence.

Companies such as Verizon pro-vide services that let businesses setup their own app stores, where they

privately can give employees accessto custom software and commercialapps they might need for work pur-poses, Mr. Kurash said.

Companies that let employeesuse Android phones also may wantto regulate the number of modelsemployees can support, accordingto both Mr. Kurash and Mr. Fuggit,of Vox Mobile.

For one, different phones use different versions of the Androidoperating system, making it hard tosecure a fleet of different models,Mr. Fuggit said. Plus, companies using custom mobile software mightfind that their programs don’t workright when they introduce a differentphone, Mr. Kurash said.

“If that’s the case, we may have toupdate our application,” he said. ■

mitigate the problems that comewith them.

After years of using nothing butBlackBerrys, Safeguard Propertiesof Valley View started supportingother devices about a year ago andnow is letting some employees access the corporate network withtheir own mobile devices, said GeorgeMehok, chief information officer forthe company. Safeguard inspectsand maintains defaulted and fore-closed properties.

The company, which works witha lot of banks, had to be cautiousabout letting employees access sensitive data on devices they own,Mr. Mehok said. To protect that information, on each device Safe-guard installs Good Technology-brand software that is designed tocreate a virtual barrier between cor-porate data and personal data.

“We have an obligation to protectour clients’ data. It would not bepossible without something likeGood Technology,” he said.

Good Technology Inc. of Sunny-vale, Calif., is one of several compa-nies that sell software with the abilityto segregate corporate data frompersonal on mobile devices, whichmakes it easier to secure sensitiveinformation and erase it if a deviceis lost.

Those products are starting tobecome popular among largercompanies, and for good reason,said Brian Stein, president andchief operating officer of mobile

strategy firm Pervasive Path Con-sulting LLC of Solon. Companiestrying to manage mobile deviceswith software that can’t make thatdistinction could run into problemsif, say, an employee loses a smartphone only to find it later — aftertheir employer has used the soft-ware to erase everything on it.

“If you wipe somebody’s picturesof their kids … they’re going to bepretty upset,” he said.

The root of the problemRevol Wireless of Independence

aims to start installing some kind ofmobile device management soft-ware on the Android smart phonesthat some Revol employees now use,said Jim Bryson, manager of infra-structure for the wireless carrier.

The company also aims to createa mobile device policy, but it won’tdo so until it starts installing the device management software, hesaid. Without the software, Revolhas no way to enforce the policiesMr. Bryson wants to create, such asone that would prohibit employeesfrom “rooting” their Android phones.That process lets users change theway the phones operate, whichcould pose security risks, he said.IPhones and iPads can be tamperedwith, too, through a process calledjailbreaking.

Some mobile device managementsoftware can detect when a phonehas been rooted or jailbroken, Mr.Bryson said.

“You’re essentially giving anyone

… access to everything on the phone,”he said.

No such process exists for theBlackBerry, a device that made it“very easy to lock down devices andenforce policy,” he said.

Being able to remotely wipe datafrom employee iPhones, iPads andAndroids minimizes the risk thatsomeone might find sensitive databy rooting or jailbreaking a lost device,according to Karen Anzuini, chiefinformation officer for Clevelandlaw firm Benesch FriedlanderCoplan & Aronoff LLP.

Thus, it is “very important forpeople to let us know immediatelyif someone loses the device,” Ms.Anzuini said.

Broadening the number of devicesemployees can use has created afew issues for Benesch, she said. For one, the number of calls to Benesch’s information technologyhelp desk has gone up by roughly10% to 15%, she estimated. Plus,the law firm’s network has beenstrained at times by the sheer numberof devices trying to access the lawfirm’s email system at the sametime, she said.

Benesch’s wireless network alsodoes a lot of heavy lifting, which iswhy the law firm late last year installed a second network that employees at its Cleveland officecan use for personal reasons.

“There are people who want tobe able to stream Pandora (musicservice) or whatever at the office,”she said.




PRESENTED BY:D BY:

GET YOUR TICKETS TODAY!

Meet Northeast Ohio’s Leading Human Resources Professionals

SPONSORED BY: VIDEO SPONSOR:

Congratulations 2012 Finalists

2012 Lifetime Achievement award winnerThomas Hopkins, Senior VP, Human Resources, The Sherwin-Williams Co.Finalists selected by an independent panel of HR industry experts

United: Other cities have suffered after losing airline hubsUnited’s senior vice president/net-work. “It is incredibly helpful.”

He added, “Year over year,(Cleveland Hopkins InternationalAirport’s) performance is betterthan some other hubs in terms ofprofitability. The hub is in a far betterplace than it would have been without the efforts of the team inCleveland.”

Guidelines on the “United forCleveland’s Hub” website suggestthat small and midsized businessesallow employees to choose Unitedwhen the carrier’s flight is within$200 of the competing lower airfare.Large corporations, the guidelinessuggest, should consider a thresholdas high as $300.

“Our anecdotal experience wouldsuggest we’ve got several hundredcompanies now trying to do that,”said Joe Roman, president of theGreater Cleveland Partnership.“We’re seeing people creating thosepolicies.”

Following on that effort, Unitedalso is making a push to sign upNortheast Ohio companies to itsRewardOne and PerksPlus programs,the corporate equivalent of frequentflyer reward programs. Evan Koppel,United’s Cleveland-based regionalsales manager, said his sales staff isgetting a positive response fromtheir business clients.

“Of those companies (the salesstaff has contacted), we’re prettypleased with our performance,” he

said. “What we are seeing in thecommunity is a heightened aware-ness of how important this wholeinitiative is.”

Freshening up the placeMr. Roman said the focus of the

marketing campaign is convincingbusinesspeople and business traveldecision makers who buy thelargest chunk of premium airlinetickets — the kind that generatesmost of an airline’s profit — to flyUnited from Cleveland Hopkinseven if it means paying a little morethan a ticket on another airline or atanother airport.

In addition to a website(http://tinyurl.com/87c69xk), GCPis communicating regularly with its

14,000 members and is advertisingon radio stations WCPN-FM 90.3and WTAM-AM 1100.

The marketing effort is designedto stay ahead of the game and avoidthe fate of cities such as Cincinnatiand Pittsburgh that have lost hubsin the last few years after their hubairline merged with another air carrier. In May 2010, ContinentalAirlines, which operated a hub atCleveland Hopkins for severaldecades, announced it would mergewith United, prompting fears thehub would be lost.

Cleveland Hopkins itself is an active participant in the preserve-the-hub effort, spending $60 millionthis year, and $530 million over fiveyears, to improve the airport’s ap-

continued from PAGE 1 pearance and passenger experience.“We’re steadily trying to build a

new airport in place,” said Ricky Smith,director of the Cleveland Airport System, which operates Hopkinsand Burke Lakefront Airport. “We’reoverhauling the ticketing area, andnext year we’ll be refacing the terminaland then replacing the existingshort-term parking lot.”

Beyond physical changes, the airport is emphasizing its softer sideto potential customers.

Today, June 25, is Business TravelerAppreciation Day at Cleveland Hop-kins. The airport is offering businesstravelers free coffee, free shoe shinesand discounts at airport shops,among other perks.

It even has created a Wall of Famethat will honor an inaugural group ofroad warriors.

A ‘pretty nice niche’ at HopkinsNot all firms, because of company-

wide travel policies, can jump on thebandwagon of this local program.But they understand the value of ahigher level or air service.

If an Eaton Corp. traveler tries tobook a flight out of Akron-CantonAirport, a note pops up that suggestsusing Cleveland Hopkins as long asthe airfare differential is $200 or less,said William B. “Barry” Doggett, senior vice president of public andcommunity affairs.

Mr. Doggett added that of the1,500 departures from ClevelandHopkins by Eaton employees duringthe first five months of 2012, theshare of United bookings is up “acouple percent” over 2011.

Lee Thomas, managing partner ofthe Cleveland office of the Ernst &Young accounting firm, said his1,600 employees must adhere tofirmwide travel guidelines and satisfythe clients who usually end up footingthe bill for the firm’s travel.

“There is not specific leeway forUnited,” he said. “But because theirflights are the ones we want, we canget on the direct flight as long as theclient is supportive of that.”

United currently offers about 175flights daily from Cleveland Hopkins,slightly lower than it did before the2010 merger announcement. It hasnonstop flights to 57 destinations,with about two-thirds of those beingthe only direct flights to those cities.

With larger United hubs at Chicago’s O’Hare International Air-port and Washington Dulles Interna-tional Airport in the Washington,D.C., area, a Cleveland hub wasviewed by many airline industry ob-servers as excess baggage. And whilemany in the industry continue toquestion the ability of the Clevelandhub to survive, it has some supporters.

Joseph Schwieterman, a professorand director of the Chaddick Insti-tute for Metropolitan Developmentat DePaul University in Chicago, and a planner for United before he entered academia, thinks the hubcan have a future.

“They were making some goodmoney in Cleveland,” he said. “I wouldbe surprised if they substantiallydownsize Cleveland.”

Noting that the majority of United’sflights in and out of Cleveland are onsmaller, regional jets, Mr. Schwieter-man said it wouldn’t make sense tomove that traffic to crowded O’Hareor Dulles, taking slots now filled bymore profitable international andtranscontinental flights.

“It’s a pretty nice niche for Unitedthat hasn’t been a drain on its bot-tom line,” he said. ■


growing loans the way they’regrowing loans raises everybody’sattention,” Mr. Palmer said. “I’mnot aware of any other communitybanks that are experiencing thatkind of growth in terms of originationsin that short period of time.”

First Federal’s market share for home purchase mortgages was5% in 2010 and increased to 9.4% in 2011, according to CoreLogic’sMarketrac.

Mr. Fraser attributes the growthto plans laid in 2007 to gain marketshare as other institutions’ assetquality sank and lenders began to pull back. The institution is offering competitive rates, but theyare not market-leading rates, henoted.

Mr. Fraser also attributes the success to consistent underwriting,close relationships with the real estate community, the surge in realestate lending in general given thehistorically low interest rates andincreased marketing.

Growth pattern

Lakewood’s namesake mutualbank, which today counts $1.35 billionin assets, completed the integrationof Parma-based Century Bank inSeptember. The acquisition addedfive branches, bringing its total to18, and all but one of Century’s 36employees.

First Federal’s growth has notebbed since.

The bank has increased its staffto 315 from 205 in early 2010 — including the 35 from Century —largely to support its lending pushand to handle added compliancemandates. Those hired includemortgage originators, loan processorsand underwriters, and Mr. Fraseranticipates adding 10 more loan officers by year-end, plus anotherdozen support personnel.

Since the acquisition closed, deposits across all five former Century Bank branches have grownnearly 9%, Mr. Fraser said.

And over the last 12 months, the

bank has invested more than $2million in new and upgraded facili-ties, Mr. Fraser said, including a newFirst Federal branch in Strongsville,a rebuilt retail plaza in North Olmsted that it now shares withMalley’s Chocolates and AT&T, andsignificant upgrades and new sig-nage at all of the former Centurybranches.

It plans to open a loan produc-tion office in the Ohio City area inJuly to bring its number of such offices to seven statewide, and mayopen another in Cleveland by year-end, too, Mr. Fraser said.

Mr. Fraser says his institutionneeds to be bigger to better absorbacross a larger asset base increasedcompliance costs, which largely arethe result of the Dodd-Frank WallStreet Reform and Consumer Pro-tection Act.

It will continue to consider expansion opportunities that arise,he said, including single-branch orother bank acquisitions and assetpurchases.


REAL ESTATEContact: Toni ColemanPhone: (216) 522-1383Fax: (216) 694-4264E-mail: [email protected]

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

AUCTION

BUSINESSFOR SALE

COMMERCIAL SPACE

List your Industrial,

Commercialor Retail

Space Here!

CCrraaiinn’’ss CClleevveellaanndd

BBuussiinneessss’’ ccllaassssiiffiieeddss

wwiillll hheellpp yyoouu ffiillll

tthhaatt ssppaaccee....

CCoonnttaacctt TToonnii CCoolleemmaann aatt

221166..552222--11338833TTCCoolleemmaann@@CCrraaiinn..ccoomm

LLUUXXUURRYY PPRROOPPEERRTTIIEESS

RREEAALLTTOORRSS::Now is a great time to promote your

Luxury Properties to high-end prospects

Call 216.522.1383 for more details

CLASSIFIEDFLYNNENVIRONMENTAL

For Assessments(800) 690-9409

www.flynnenvironmental.com

BUSINESS SERVICEOWNERS!

Submit your business card to promote your service.GREAT RATES AVAILABLE.To find out more, contact

Toni Coleman at 216.522.1383

WANTED:Your subscription to

Crain’s Cleveland BusinessTo sign up call toll-free at 1-877-824-9373

or on-line @ CrainsCleveland.com

“Historic Huntington Kelley House”

REAL ESTATE AUCTION / JULY 31

For Brochure & Terms of Sale call Mark Abood or Mike Berland 216-360-0009On-Site Inspections: 12:00 Noon to 2:00 P.M., Thursdays, July 12, 19 & 26

SHERIFF’S SALE

Chartwell Group, LLC · Chartwell Auctions, LLC Michael Berland, Court Appointed Auctioneer · www.chartwellauctions.com

TO BE SOLD BY ORDER OF THE ERIE COUNTY COURT OF COMMON PLEAS CASE NO. 2011CV0374

Parcel 1: Fully Improved 2.2 Acres ground leased to newly constructed Aldi Supermarket

with multiple extensions & renewals. Current rent is

$90,000 +/- per year.PUBLISHED RESERVE

PRICE: $650,000 (2/3rds Sheriff ’s Appraised Value)

Parcel 2: Fully Improved 7.5 Acres with 5,000 S.F. building leased

to Sherwin Williams Paints with multiple extensions & renewals.

Extra acreage for expansion. Current rent is $82,620 +/- per year.

PUBLISHED RESERVE PRICE: $1,780,000

(2/3rds Sheriff ’s Appraised Value)

Parcel 3: Fully Improved 29 Acres zoned PUD for a variety of possible uses. Includes streets, sewer, water, and storm water retention system.

Fully signalized intersection at US-250 and Dewitt.

PUBLISHED RESERVE PRICE: $1,400,000

(2/3rds Sheriff ’s Appraised Value)

US-250, Sandusky, OH 44870

LAKECREST TOWN

CENTER

Located in Sandusky, OH - ranked one of the top vacation destinations in America. Some of the stron-gest traffic counts and demographics imaginable. Just 1 hour west of Cleveland and East of Toledo.

3 PARCELS OFFERED INDIVIDUALLY

Incredible Retail Investment/Development Opportunity!FFOORR SSAALLEE

5218 Detroit Avenue

9884 Sq. Ft. Retail/Comm. ample off street parking

Call 440-899-7887 Prudential Lucien & Assoc.

Note To AdvertisersDue to the July 4th holidayCrain's Cleveland Business

will will not publish an issue on July 2nd.

Next available issue will be 7/9 with early close of Tuesday 7/3 at 2:00 PM.

For daily on-lineupdates, sign up @

CrainsCleveland.com/Daily


Lakewood: Bank enhances marketing“The end goal is to be best posi-

tioned to continue our form of mutual ownership and to serve the communities we’re in,” he said.“We have to have enough size andscale to be able to offer all the prod-ucts that our larger competitors do(while) at the same time keep thefocus solely on our customer.”

First Federal, which as a mutual isowned by its members, not share-holders, began offering e-statementsthis year and plans to roll out mobilebanking in the third quarter.

“We think there’s an opportunityfor community banks that havetransparent products and fair pricing to win over customers,” headded.

Making itself knownOf course, those customers must

know you’re there.First Federal executives received

the results of a branding study lastsummer, which Mr. Fraser said affirmed that people recognize the77-year-old institution’s name andthe tagline, “We’ve Been Here, We’llBe Here.”

But given its bigger footprint, thebank’s leaders also believed it was

important to tell Greater Clevelandthat it serves the entire region, Mr.Fraser said. (The acquisition of Century’s branches expanded itsfootprint farther east and south thanit’s been historically, Mr. Frasersaid.)

To that end, First Federal’s marketing budget is double what itwas two years ago. The bank isspending more on billboard, televi-sion, Internet and radio ads, he said.

The institution also has intro-duced another tagline — “GreaterCleveland’s Community Bank” — toreflect its bigger self.

The Community Bankers Associ-ation of Ohio’s Mr. Palmer said it’s not common currently to see acommunity bank spending moremoney to get its name out there,given the perspective that there’snot a whole lot of loan demand.

While it’s clear that First Federal’sbeing aggressive, as with any lending portfolio, time will tell thequality of its originated loans, Mr.Palmer noted. Given the environ-ment, most community banks still are being more stringent and conservative than they were fiveyears ago, he added. ■


Guess who owns some LNB preferred shares?■ Umberto P. Fedeli has put his moneywhere his mouth is.

The vocal shareholder of LNB BancorpInc. had offered to infusecapital into the parentcompany of Lorain National Bank so that itcould retire its TroubledAsset Relief Program, orTARP, investment fromthe U.S. Department ofthe Treasury.

So when the Treasuryannounced it would

auction the preferred shares it held in LNB,it seemed appropriate to ask Mr. Fedeli if hebought some.

The president and CEO of The FedeliGroup, an insurance brokerage in Indepen-dence, did bid successfully on some of thepreferred shares with a group of investors,but said he isn’t authorized to speak for allof them, so he wouldn’t disclose how muchthey bought or what they paid in total.

However, the Treasury did reveal publiclythat bidders of LNB’s 25,223 shares paid$869.17 per share, a price Mr. Fedeli calleda “significant discount” from the originalpar value of $1,000.

“We did not purchase as much as wewould have liked, (but) we think it’s a goodinvestment,” Mr. Fedeli said. “We boughtthis on a discount, so we’ll get a good returnas is, even without (the dividend rate) goingto the higher amount.”

He was referring to the 80% jump the

dividend rate on the preferred shares is slated to take in February 2014 unless LNBredeems the shares for cash first.

LNB had set the minimum bid price at$744.50 per share. The company did not buyback any of its own preferred shares, accordingto a filing with the Securities and ExchangeCommission.

The Treasury’s auction of LNB preferredshares generated about $22 million in netproceeds for the Treasury. Though it’s truethe Treasury paid more for the shares in December 2008 ($25.2 million), it receivedmore than $4.3 million in dividend paymentsfrom LNB over the life of the investment, aTreasury spokesman said. —Michelle Park

Akron’s alumni, developmentteams game for new space■ The stands at University of Akron’s Info-Cision Stadium have yet to fill up with fans,but the planned move of the university’salumni and development offices will put theprime piece of real estate at full occupancy.

The university plans $3.6 million in construction to outfit the remaining shellspace in the nearly 3-year-old stadium withnew digs for the university’s alumni and development teams. Construction is slatedfor completion by the end of next year.

“The view of campus and the City ofAkron is amazing (from the stadium),” saidKimberly Karson, the university’s assistantvice president for alumni and college centered development. “We can host localcorporations, VIPs and alumni to show offthe view and talk about the big picture of thecampus.”

In addition to serving as the future homefor the alumni and development teams, InfoCision also houses the College of Educa-tion’s sports science and wellness programs.

The Zips, who went 1-11 in each of thelast two seasons, will get a fresh start on the field this fall with new head coach Terry Bowden, who joined the university in December. — Timothy Magaw

Radisphere takes fundraisingbreak, but not from growth■ Having raised about $80 million in financingover the last five years, Radisphere NationalRadiology Group has no immediate plans toseek out additional equity and instead willfocus on adding to its roster of customers inthe coming years, according to companyCEO Scott Seidelmann.

“Given the size of the market and growthopportunity, if we need more capital to pursue something strategically, then we’llgo and get it,” Mr. Seidelmann said.

Radisphere, which has its largest office inBeachwood and provides remote and on-site radiology services to community hospitalsaround the country, has about 30 clients.Mr. Seidelmann expects that number togrow to as many as 100 in the next few years.

The company, which recently movedfrom Commerce Park to Park East Drive inBeachwood, has seen marked growth since itsfounding in 2001. The company’s revenuefor the first five months of 2012 alone, for instance, increased 36% over the like periodin 2011. As the company adds clients, Mr.Seidelmann also expects to add to the salesand marketing team. — Timothy Magaw

WHAT’S NEW

THE COMPANY: Ridgid, ElyriaTHE PRODUCT: SeeSnake MaxrM200 Camera System

With its newest product, Ridgid is helpingplumbers take the long view of their work.

The company, which makes equipment forthe professional trades, says the SeeSnakeMax rM200 system “combines portability andversatility to provide plumbing professionalswith an easy-to-use solution for inspectinglonger and tighter lines up to 200 feet inlength and 1½ inches to 6 inches in diameter.”

The inspection system “offers an efficientway to handle the most demanding jobs,”Ridgid says. Features include improved reelmechanics for easier passage through tightturns, an ultra-compact camera capable ofproviding optimal lighting through narrowspaces, and an upgraded cable to providegreater abrasion resistance and allow usersto push further with less effort.

Ridgid says the inspection system alsocomes with a built-in docking system for attaching upcoming viewing monitors. It’scompatible with the Ridgid SeeSnake CS10and CS1000 digital recording monitors.

Additionally, the product comes equippedwith an integrated transport system to makeit easily portable on a job, the company says.Users can either carry the reel or use an op-tional wheel system to meet job-site needs.

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK JUNE 18 - 24

The big story: Although they appear less optimistic than they did a year ago, most North-east Ohio business leaders expect their bottom

lines to grow this year. Accordingto a survey conducted by the Audit

Committee Institute of KPMG LLP, 70% of business leaders in

this region believe profits will increase in 2012, slightly lower

than the 75% response regis-tered a year ago. In addition, 32%

plan to increase headcount, down from45% a year ago. ACI conducted the survey during aroundtable meeting attended by nearly 60 boardmembers and business leaders from NortheastOhio companies.

The Spanish acquisition: Specialty chemi-cals company Lubrizol Corp. of Wickliffe agreedto buy Lipotec SA, a Spanish company thatmakes ingredients for personal care products.The acquisition “complements Lubrizol’s globalpersonal care ingredients business, strengtheningits offering of high-performance technology solutions to marketers of formulated skin careproducts,” Lubrizol said. Lipotec, founded in1987, is headquartered in Barcelona.

Sealing the deal: RPM International Inc.acquired Viapol Ltda., a Brazilian producer ofbuilding materials and construction products. TheMedina-based maker of coatings and sealantsdid not disclose what it paid for Viapol, which isbased near Sao Paulo and has annual sales of $85million. However, RPM said it expects the acquisition to be accretive to earnings after yearone. Viapol, founded in 1990, will become partof The Euclid Chemical Group, a unit of RPM’sBuilding Solutions Group that serves construc-tion and rehabilitation markets worldwide.

A world of innovation: A. Schulman Inc.opened global innovation centers in Germanyand Mexico. The Akron-based supplier of plastics resins said the innovation centers arethe A. Schulman Academy in Kerpen, Germany,near Cologne, and the POLYnnova Group in SanLuis Potosi, Mexico, one of the main industrialcenters in central Mexico. A. Schulman said thecenters will enable the company and its partnersand customers “to undertake research and devel-opment activities that are of shared interest.”

In the mood to buy: Associated Estates Realty Corp. plans to sell 5.5 million of its common shares in a public offering and use theproceeds, in part, to fund property acquisitionsand development. The real estate investmenttrust also plans to grant the offering’s underwrit-ers a 30-day option to buy up to an additional825,000 of its common shares.

Experienced hands: Executives with Cleve-land Clinic and Ernst & Young LLP joined theboard of trustees of Team NEO, the nonprofitgroup charged with attracting businesses to theregion. Thomas J. Graham, a hand surgeon andchief innovation officer of Cleveland Clinic Innovations, has been involved in the develop-ment of the new Cleveland convention centerand medical mart. C. Lee Thomas is managingpartner of the accounting firm’s Cleveland officeand has specialized in the manufacturing industry.

This and that: Private equity firm WesternReserve Partners LLC in Cleveland opened anoffice in Dallas. Ken Hirsch, a managing direc-tor and co-founder of Western Reserve Partners,is moving to Dallas. … Another out-of-marketlaw firm opened an office in Northeast Ohio inresponse to the energy potential of the Uticashale fields. Pittsburgh-based Babst Calland saidit’s continuing the expansion of its growing en-ergy practice with its newest office, which is atthe PNC Center in downtown Akron.

BEST OF THE BLOGSExcerpts from recent blog entries onCrainsCleveland.com.

150 people today do thework of 900 from years ago■ Dow Jones took note of a phenomenonthat reflects how the economy’s efficiencysometimes gets in the way of growing theemployment base.

The news service reported that furnacesand other machinery to make steel on thewest side of ArcelorMittal’s ClevelandWorks were fired up last month for the first time in almost four years.

However, the company, which makescoiled steel productsused to make cars and appliances, addedjust 150 people to runoperations that adozen years ago werestaffed by about 900people.

“With the ability toraise output throughimproved efficiencyand automation, com-panies have had the option of adding employees slowly or running with perma-nently smaller work forces,” according tothe story.

Dow Jones cited Federal Reserve datashowing that since the middle of 2009,“manufacturing output has been growing atan annual rate of 6.5%, but just 21% of themanufacturing jobs lost during the reces-sion have been restored.”

To drive down costs and preserve margins, ArcelorMittal “has leaned on tech-nology at Cleveland Works to improve productivity and output,” Dow Jones reported. “The mill’s man-hours per ton ofsteel — a measure of labor costs and output— has fallen to about one man-hour per tonfrom five hours in the 1960s.”

Eaton Corp. takes uptax dispute with the IRS

■ Cleveland-based Eaton Corp. is challengingthe Internal Revenue Service in U.S. TaxCourt, “arguing that the agency brokeagreements dealing with how the companymoves assets and money across interna-tional borders, a volatile issue in the taxworld,” Reuters reported.

Eaton “is contesting a $75 million tax billthat the IRS imposed on the company in acase that could have broad impact on othercompanies’ ‘transfer pricing’ practices, theindustry term for shifting assets across

borders to reduce taxes,” according to the news service.

The company awaits acourt date in the case.

Reuters reported that theIRS tax bill “hit Eaton as theagency in December 2011 revoked two deals it had ne-gotiated with the company.”Known as “advance pricingagreements,” or APAs, thepacts address how Eaton

handled its transfer pricing issues.“Eaton’s annulled agreements marked

the first time in four years that the agencyhad canceled APAs, a worrisome sign formultinational corporations increasinglyfrustrated by costly IRS delays in negotiatingthese deals,” Reuters reported.

The news service said businesses “worrythat APAs take too long to finalize, cost toomuch and may not be as air-tight as expectedwhen it comes to preventing squabbles withthe IRS over transfer pricing.”

In May, Eaton announced plans to buyCooper Industries of Dublin, Ireland, andplans to move its corporate headquarters tothat country. Reuters notes that the top cor-porate tax rate in Ireland is 12.5%; the toprate in the United States is 35%.


Fedeli


RONALD MCDONALD HOUSE

PRESENTED BY:

oday marks the 33rd Annual Ronald House Pro-Am Golf Tournament. Presented by

Truline Industries, the Pro-Am Tournament is the longest-running and most successful event

Ronald House Pro-Am has raised more than $3.1 million to help the families that call RMH

-

centers by providing a home-like environment and essential resources and services. Our

unique facility provides temporary, affordable, high-quality housing in a caring atmosphere

for families near and far.

were turned away due to lack of space and these numbers continue to grow. In January

we proudly announced our theme for an expansion plan: “Needs have grown and so must

services. Your support is crucial to the success of our future – we hope you’ll join us in this

very exciting capital campaign for the Ronald McDonald House of Cleveland.

T

TOUR PROFESSIONALS: RESIDENT PROFESSIONALS:

Many Hearts... One Home...Expansion Opening 2013!

And thank you to this year’s corporate sponsors:

Truline Industries

A special thank you to this year’s underwriting sponsors:

®


SPORT AND LUXURY. THE BEST OF BOTH WORLDS.

FERRARI-DERIVED ENGINE

TRUE 4-SEATER FOR ADULTS

INTRODUCING THE MASERATI GRANTURISMOCONVERTIBLE, FOR FOUR.

Now you can experience Maserati for yourself, at Maserati of Cleveland, part of Collection Motorsports. Best of all, your Maserati comes with a level of service that has become the hallmark of Collection Auto Group. The new Maserati GranTurismo Convertible offers an unforgettable driving experience for four adults, with comfort and performance unmatched by any other luxury convertible GT.

* $2,999 INCLUDES CAPITALIZED COST REDUCTION, FIRST MONTH’S PAYMENT, WITH APPROVED CREDIT. YOU PAY SIXTY CENTS PER MILE FOR ALL MILES OVER 10,000 PER YEAR AT LEASE END. MONTHLY PAYMENT DOES NOT INCLUDE SALES TAX, ACQUISITION FEE, TITLE AND REFUNDABLE SECURITY DEPOSIT, $250 ADMINISTRATIVE/DOCUMENTARY FEE AND LICENSING FEES #65974 EXPIRES 6/30/2012.

28300 Lorain Road North Olmsted440-716-2000www.maseraticleveland.com Cleveland

Aston Martin Cleveland28300 Lorain Road

North Olmsted______________________________________

440.716.2000astonmartinofcleveland.com

CLEVELAND

©2012 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost.

For some things in life, there will never be an app.

Experience the new 2013 Boxster. Starting at $49,500.

Porsche of North OlmstedA Part of Collection Auto Group 28400 Lorain Road, North Olmsted, Ohio 44070

440-716-2720 Open 24/7 at: www.clevelandporsche.com

Follow us on for additional specials and offers

$1,599PER MONTHFOR 39 MONTHSWITH $2,999 DUE

AT SIGNING*

UNDER

NEW OWNERSHIP

Airport Beachwood Middleburg Heights North Olmsted

*Offer expires 6/30/12

“Martin. Aston Martin.”An Aston Martin shakes up the status quo while stirring the soul of those who drive one. Why not make that someone you? Come to the new Aston Martin Cleveland, part of Collection Motorsports, and experience the exquisite craftsmanship and phenomenal performance that is Aston Martin.

1.99% AVAILABLE ON 2012 MODELS*


crain's cleveland business

Documents

united page

northeast ohio page

downtown cleveland

cleveland businesscommunity

land browns stadium

ceo of united airlines

greater cleveland partnership

new company