May 19 - Crain`s Cleveland Business

Transcription

May 19 - Crain`s Cleveland Business
20140519-NEWS--1-NAT-CCI-CL_--
5/16/2014
2:00 PM
Page 1
$2.00/MAY 19 - 25, 2014
PHOTO ILLUSTRATION: REBECCA R. MARKOVITZ; DOLLAR: FOTOLIA; MANZIEL, NFL LOGO: GETTY IMAGES
Fed’s cuts
are adding
concern at
NASA Glenn
Local officials and
union leaders worry
job losses are next
By CHUCK SODER
[email protected]
HE’S THE MONEY MAN
Manziel mania has been a huge boon to Browns and many others since NFL draft
By KEVIN KLEPS
[email protected]
fter Johnny Manziel was selected by the
Cleveland Browns with the 22nd overall pick
in the NFL draft on Thursday, May 8, he
strode across the stage at Radio City Music Hall
with both hands raised.
It wasn’t a triumphant pose. Instead, it was
Manziel’s trademark money gesture — the quarterback rubbing his fingers together in a move
popularized by rapper Drake.
That image — Manziel the money-maker —
appeared on a regional cover of the May 19 issue
of Sports Illustrated, and it might as well be a sign
for the Browns and many businesses in Northeast Ohio.
A cash cow has arrived.
By Monday afternoon, May 12, the Browns had
20
A
sold 3,000 season tickets since the selection of
Manziel.
His No. 2 Browns jersey was the top seller on
NFLShop.com since April 1, topping the likes of
Super Bowl champion quarterback Russell Wilson and Peyton Manning, the league’s most popular pitchman.
For impatient fans who didn’t want to wait
four to six weeks for a jersey to arrive in the mail,
the Cleveland Browns’ team shop at FirstEnergy
Stadium has been churning out Manziel gear at
a frenetic pace — until it ran out of the synthetic
material used to press Manziel’s No. 2 onto a
Browns Nike top.
The Manziel phenomenon is so widespread
that Ken Ungar, president of U/S Sports Advisors,
an Indianapolis-based sports and entertainment
marketing agency, compares the rookie QB not
to the Denver Broncos’ Manning or the New Eng-
land Patriots’ Tom Brady, but to Joe Namath —
aka “Broadway Joe.”
“(Manziel) is the type of personality that can not
only transcend football, but be the link to sports
and entertainment, which Namath was,” Ungar
said. “If you look at what Manziel has done so far,
he’s trending a similar path to Namath.”
Browns’ business is ‘winning’
The Browns have been quick to pump the
brakes on the runaway publicity train that is
Johnny Football.
Team owner Jimmy Haslam told a packed
house at a Pro Football Hall of Fame luncheon in
Canton that Manziel “is the backup” QB to Brian
Hoyer, and the Browns were criticized by some
in the national media last week for limiting access to a rookie minicamp held in Berea.
See MONEY Page 20
A series of budget cuts has wounded NASA Glenn Research Center at a
particularly bad time.
The cuts have stopped NASA Glenn
from pumping tens of millions of dollars into two big high-tech projects —
projects that could help protect the
center at a time when the broader federal agency is looking to jettison resources it doesn’t need.
In response, local officials are trying to help NASA Glenn win federal
funding for at least one of those
space technology projects.
Because without that money,
there’s a real risk that more work
could be moved from NASA Glenn to
larger NASA centers in other states,
according to officials from the
Greater Cleveland Partnership and
the union representing scientists
and engineers at NASA Glenn.
That’s bad news for the center’s
3,300 employees and contractors, given how many other costs NASA Glenn
already has cut in recent years, according to Nick Gattozzi, vice president of government advocacy at the
Greater Cleveland Partnership, which
is the region’s chamber of commerce.
See NASA Page 6
INSIDE: NASA Glenn hasn’t received
nearly as much research funding as
the White House wanted. Page 6
0
NEWSPAPER
74470 83781
7
REAL ESTATE
ALMOST THERE
Long-awaited final phase of the Four
Seasons complex in Beachwood
nears completion ■ Page 5
Entire contents © 2014
by Crain Communications Inc.
Vol. 35, No. 20
20140519-NEWS--2-NAT-CCI-CL_--
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CRAIN’S CLEVELAND BUSINESS
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MAY 19 - 25, 2014
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CRAIN’S CLEVELAND BUSINESS
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MAY 19 - 25, 2014
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Tanglewood Golf Course is looking a lot more sorted out these days
— thanks to more than $1 million in
recent investments in the course
and facilities.
It will need to be at its best if it’s
to compete in an industry where
the courses are still plentiful, but
the number of playing customers is
dwindling significantly.
But new general manager Tom
Scheetz — who formerly helped
build and manage other notable local courses, including Little Mountain Country Club in Concord and
StoneWater Golf Club in Highland
Heights — thinks his course is up to
the challenge.
“When we get stretches of good
weather, we’ve been very busy already,” Scheetz said on a recent
cool and rainy Wednesday that still
managed to attract a few players
and lesson-takers to the course.
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Fueled by new capital and new
ownership, First Place Bank of Warren — an institution acquired early
last year from its bankrupt parent
company — is now Talmer Bank
and Trust, armed with more than a
dozen new lenders and operating
new corporate offices near Cleveland.
Talmer Bancorp Inc., Talmer
Bank’s holding company based in
Troy, Mich., doubled its assets
when it closed its acquisition of and
recapitalized First Place Bank in
January 2013.
Since last May, Talmer locally has
hired a net additional 14 commercial bankers, bringing that team to
a total of 35, and it opened offices in
late April in more than 6,500 square
feet in Solon.
In the same month, it hired a region president for the Mahoning
Valley, too.
Still, Talmer executives acknowledge their brand is relatively foreign
in these parts of Northeast Ohio.
While First Place had a presence
in Mahoning Valley, “we were just
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ing development off Route 306 near
Bainbridge, the course always has
been a favorite of better players.
Known as a “tough track,” in locker
room parlance, the course has been
ranked as one of the toughest in the
area.
No one has ever carded a score
lower than 67 there, even though it
has hosted plenty of professional
players.
It opened in 1967 and has hosted
such tournaments as the LPGA’s
Babe Zaharias Classic, the Ohio
Open and, in 1972, the PGA Tour’s
last Cleveland Open. Famous golfer
Fuzzy Zoeller once said “set the tees
to the blues, grow the rough and
you’ve got an (U.S.) Open Course.
In the 1980s and ’90s, the place
was a hot spot for celebrities,
wealthy businessmen and the occasional wild party or even brawl.
Bernie Kosar and other sports stars
were regulars, and the tees and
greens were generally crowded and
well-groomed.
See TANGLEWOOD Page 9
Talmer gets ‘in the game’ here
McDonald Hopkins LLC
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Carl J. Grassi, President
Shawn M. Riley, Cleveland Managing Member
mcdonaldhopkins.com
DAN SHINGLER
Tom Scheetz, the new general manager at Tanglewood Golf Course, says the
facility has been “very busy” despite the rough weather this spring.
Shafer
Lynch
really not in the game in Cleveland,” said Thomas C. Shafer, vice
chairman of Talmer.
But executives aim to be, particularly in the commercial banking
space.
“We have virtually no brand
recognition in Cleveland, but the
team we’ve been able to attract …
are senior bankers,” said Jamie
Lynch, executive managing director
and region president for Ohio.
“These people have significant influence in the marketplace. Our
team has intimate knowledge of
Northeast Ohio.”
Excluding loans from another
bank acquisition in early 2014, net
total loans grew by $84.8 million, or
11.5% annualized, in the three
months ended March 31, Talmer
reported recently.
“First Place was very distressed
for a while,” said Charlie Crowley,
managing director in the Beachwood office of investment banking
firm, Boenning & Scattergood Inc.
“They were looking to shrink the
balance sheet in order to maintain
their capital ratios at a desired level. So, turning the page from the
Volume 35, Number 20 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West
St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications
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REPRINT INFORMATION: 800-290-5460 Ext. 136
time of distress to being part of a
very healthy, well-capitalized buyer
is a big difference.”
Talmer’s story begins with its
founding in 2007 as a small bank
called First Michigan Bancorp Inc.,
which later was renamed. Backed
by private equity capital, the bank’s
executives sought to buy failed
banks during a time when capital
was flowing away from the Midwest, Shafer said.
And they have: Talmer since
April 2010 has executed seven
acquisitions, four of them in
Michigan.
Its acquisition of First Place Bank
followed the bankruptcy filing by
First Place Bank’s parent, First
Place Financial Corp., in October
2012. The formal consolidation of
the banks’ charters took place this
February.
Talmer Bancorp more recently
completed a roughly $250 million
initial public offering in February, a
move designed to provide liquidity
to Talmer’s private equity backers,
Shafer said. The company retained
more than $40 million, executives
said.
So, while the priority is to grow
Talmer through existing operations, both Shafer and Lynch said
additional acquisitions are plausible.
“We are open to continuing to
grow through acquisition in Northeast Ohio,” Shafer said. “Most importantly, we think we can grow
through organic growth.”
■
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20140519-NEWS--5-NAT-CCI-CL_--
5/16/2014
4:34 PM
Page 1
MAY 19 - 25, 2014
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
5
INSIGHT
Cleveland doesn’t want to waste its trash
City is giving another chance to idea of finding private
partners to convert garbage into steam, electric power
By JAY MILLER
[email protected]
The city of Cleveland is hoping to
team up with private partners to
make a second run at turning its
trash into electric power.
At a meeting last Thursday, May
15, the city outlined its plan to convert a large portion of its solid waste
into a renewable fuel supply — engineered fuel pellets.
The plan foresees the city joining
with two companies that would
build separate plants to turn the
solid waste into steam and electric
power.
One company that city would
contract with would build a plant
that manufactures the fuel pellets.
That plant would sell the fuel pellets to another new plant, this one
built by Cleveland Thermal LLC, a
longtime Cleveland company that
currently sells steam and chilled
water to heat and cool downtown
buildings.
Cleveland Thermal’s new plant
also would generate electricity that
would be sold to city-owned Cleveland Public Power.
The purpose of last week’s meeting was to introduce the plan to
companies that might be interested in building and operating the
plant that would make the fuel pel-
lets. The city has issued a request
for proposals, or RFP, that is due
June 15.
Ken Silliman, Cleveland Mayor
Frank Jackson’s chief of staff, told
the roughly 50 attendees that the
proposal is “a win-win-win-win.”
Under the plan, the city would
improve its trash hauling operation, Cleveland Thermal would update its aging and environmentally
inefficient physical plant and the
winning bidder would get a new
business opportunity with a builtin customer base.
In addition, city-owned Cleveland Public Power would get a low-
“(The proposal is) a
win-win-win-win.”
– Ken Silliman
chief of staff for Cleveland Mayor
Frank Jackson, on plan to convert
city’s solid waste into a renewable
fuel supply
cost source of electricity. The city
also might find a use for part of a
property it owns in the Flats if the
winning bidder and Cleveland
Thermal choose to put their new
plants there.
See TRASH Page 20
MesoCoat is
leading big
sand battle
Euclid startup is working
with Canadian school to
find better way to protect
pipes from wear and tear
By CHUCK SODER
[email protected]
MesoCoat is moving into “Ice Road Truckers” territory.
The Euclid-based startup has spent the past few
years developing a faster, cheaper way to protect
steel pipes from corrosion.
But corrosion isn’t the only enemy faced by energy companies working to pull tar-like petroleum out
of the ground in northern Canada.
MesoCoat is about to start working with a technical school in Canada to optimize a new method of
protecting pipelines from another problem: wear
and tear.
The school, the province of Alberta and a group
called Western Economic Diversification Canada
have chipped in about $3 million for the project.
Meanwhile, MesoCoat and its majority owner, a Miami-based investment firm called Abakan Inc., are
throwing in another $1.2 million, according to documents Abakan filed with the U.S. Securities and Exchange Commission.
The effort aims to solve a multibillion-dollar problem.
There’s a reason why the thick petroleum being
pulled from the ground in northern Alberta often is
referred to as “oil sands” or “tar sands” — it’s packed
with sand.
And sand is abrasive. It tears up pipes as it flows
from the mine to processing facilities that separate
the sand from the oil, and then the sand is pumped
back to the mine, causing more damage.
It’s expensive to buy super-strong pipes. Thus,
every few months energy companies have to cut
each piece of pipe, rotate it and put it back, unless it
needs replaced. But that process is expensive, too,
mainly because companies can’t pump anything
through those pipes while they’re being rotated or
replaced.
See MESOCOAT Page 8
INSIDE: MesoCoat enlists NASA’s help in development
of plasma arc lamp that will aid efforts to protect pipes
from corrosion. Page 8
FINISHING TOUCH FOR FOUR SEASONS
Final building in 440-suite complex
nears completion — 25 years after
previous phase opened in Beachwood
By STAN BULLARD
[email protected]
B
ehind the gated and guarded entrance of Four Seasons
apartments near Beachwood Place mall in Beachwood,
construction workers are finishing the final phase of the
apartment complex — 25 years after the prior phase opened.
Jordan Goldberg and Eric Bell, principals and third-generation
operators of the family-owned Goldberg Cos. real estate firm, are
devoting themselves and several million dollars to making sure it
was worth the wait.
Consider what they have to work with — and the bar they have
to surpass in a time with different tastes as apartment development surges in Northeast Ohio at a scale not seen since the 1970s.
The previous building at Four Seasons shows the high-water
mark of prior multifamily development in the region. Referred to
as Four Seasons III, that structure opened in 1989 at 26600 George
Zeiger Dr. and boasts a nine-story glass atrium. The opulent atrium is done in an Italian renaissance style with ornate balconies
and a sky-blue wall. Penthouse suites have views of the horizon;
its suites exceed most in the region in size, and its in-suite laundries were the height of luxury in the late-’80s.
See FOUR SEASONS Page 8
STAN BULLARD PHOTOS
Eric Bell, left, and Jordan Goldberg, the principals and third-generation
operators of the family-owned Goldberg Cos., are devoting a lot of their
time to Four Seasons IV (above) — the final building in a 440-suite
complex near Beachwood Place mall.
20140519-NEWS--6-NAT-CCI-CL_--
6
5/16/2014
2:02 PM
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“There’s only so much you can
cut. At some point, you’re going to
get to employees,” he said.
The Brook Park-based center has
a lot of expertise related to aeronautics and technology development,
but much of the work it does related
to space travel — the biggest piece of
NASA’s budget — is doled out by
other NASA centers.
Not having a leadership role on a
marquee space technology project
could make NASA Glenn’s budget
vulnerable to more cuts, according
to Sheila Bailey, president of the
Lewis Engineers and Scientists Association, a union at NASA Glenn.
For one, a NASA committee is trying to figure out how the overall federal agency can reduce the number
of facilities it uses and cut other
costs. It would be easier for that
committee to move certain functions and projects if they are led by
other centers, Bailey said.
That prospect should concern
employees at some of the NASA’s
smaller, research-focused centers,
she said.
“I think there are a lot of people …
at Glenn and Ames and Langley that
are worried about that,” she added.
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SM
Not having a lead role on a marquee project also makes it easier for
Congress to shift money from NASA
Glenn to larger centers with more
political influence — or for larger
centers to simply stop sending work
to NASA Glenn, Bailey said.
Congress certainly hasn’t been
kind to NASA Glenn lately. For a few
years now, lawmakers have blocked
the White House’s efforts to give
more money to the center. Instead,
NASA Glenn’s budget has dropped
by $126 million, or 18%, over the
past five years.
Granted, Glenn is still slated to get
about $581 million during this fiscal
year, which is roughly in line with its
budgets from 2008 and 2009. But the
White House wanted the center to
receive a lot more money, especially
for its space technology budget.
Congress, however, hasn’t followed
the Obama administration’s lead.
It started when the administration
said Glenn should get $126 million
for space technology during the fiscal year that ended on Sept. 30, 2013.
Congress didn’t listen. So instead,
Glenn got $54 million. And then the
gap widened: For the current fiscal
year, the administration upped its
proposal to $168 million. Instead,
the center’s space technology budget was set at $33 million.
The lack of funding pushed
Glenn to severely scale back the ambitions of its two biggest space technology projects. One of the project
teams — which is developing a way
to transport super-cold fuels
through space — is slated to get just
$7.5 million during the current fiscal year. That’s 10 times less than
what the White House proposed. So
instead of testing the technology in
flight, they’ll have to do it on the
ground.
Here comes the sun
Another team developing a solarpowered space propulsion system
should get $12.6 million this fiscal
year, a third of the proposed
amount.
That propulsion system is especially important to NASA Glenn’s
future, according to the union and
the Greater Cleveland Partnership.
They’re pushing hard to help the
project win $62 million in federal
funding next year, which is about
five times what it receives now.
And Bailey said she’s optimistic
they could succeed. The NASA
Glenn union — a chapter of the International Federation of Professional & Technical Engineers — has
been lobbying Congress with the
help of other NASA IFPTE chapters.
The group got “a good response”
from members of the U.S. House of
Representatives, she said. The budget bill going through the House
would give the federal agency
slightly more money in fiscal 2015,
and the way the bill allots the money comes close to what the union
chapters asked for, Bailey said.
The bill doesn’t say how much
money NASA Glenn would receive,
but Bailey said there’s reason to believe Ohio would be treated well.
Three Ohio representatives sit on
the powerful House Appropriations
Committee, including Marcy Kaptur, D-Toledo, whose district includes both NASA Glenn’s main
campus and Plum Brook Station,
near Sandusky. Plus, last month,
Bill Johnson, R-Marietta, was
named to the Science, Space, and
Technology Committee, which sets
NASA policy.
Spheres of influence
The Senate is another story. The
chamber, which has yet to propose
a budget for NASA, typically provides more money for NASA than
the House does, but no one from
Ohio sits on the Senate Appropriations Committee. Other NASA centers have much more influence: The
chair of the committee, Barbara
Mikulski, fights hard for Goddard
Space Flight Center, in her home
state of Maryland; the vice chair, Alabama’s Richard Shelby, does the
same for Marshall Space Flight Center. They make it hard for centers
like NASA Glenn to compete for
funding and projects, according to
Gattozzi, of the Greater Cleveland
Partnership.
“It matters when … the agency
administrator is sitting at a hearing
table, and that (committee) member is asking specific and direct
questions that are important to that
member’s center or state,” he said.
Gattozzi said he believes that
NASA Glenn has the technical expertise to lead the development of
the solar propulsion system and
other high-tech projects. But if the
center doesn’t take on more of a
leadership role when it comes to
space travel projects, he fears that
more work will leave Glenn for other states. If that keeps happening, it
would be easier, politically, to close
NASA Glenn, Gattozzi said.
“We want to avoid the death-bya-thousand-cuts scenario,” he said.
BRAC to the future?
NASA is in cost-cutting mode.
Last year, the agency’s inspector
general issued a report reiterating
that NASA has too much property,
too much redundant equipment
and too many old buildings. The report noted that NASA may need to
put together an outside group similar to the Pentagon’s Base Realignment and Closure Commission in
order to consolidate or eliminate facilities.
For now, NASA’s internal Technical Capability Assessment Team is
assessing the problem itself, and
Bailey prefers it that way. She doesn’t think anyone at NASA is going
forward with efforts to create a Pentagon-style BRAC commission.
That internal committee is designed to help NASA leadership
“make informed decisions on investing/divesting strategically within the budget,” according to information Bailey forwarded from an
internal NASA web page.
It’s unclear whether that committee would recommend closing
down many facilities, or whether it
would go so far as to recommend
closing an entire NASA center.
That idea is unpopular, but it
keeps coming up, Gattozzi said.
“Every couple of years, buried in
a document, is a phrase that talks
about shuttering … centers,” he
said.
■
20140519-NEWS--7-NAT-CCI-CL_--
5/15/2014
11:20 AM
Page 1
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20140519-NEWS--8-NAT-CCI-CL_--
8
5/16/2014
3:50 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 19 - 25, 2014
NASA’s help with lamps has been key
By CHUCK SODER
[email protected]
MesoCoat needed to control the
power of the sun, so it makes sense
that the Euclid company asked
NASA for help.
MesoCoat aims to change the
way the oil and gas industry protects pipes from corrosion and
wear-and-tear. But the tool that
gives the process its power — a
plasma arc lamp — sometimes can
be too strong for its own good.
MesoCoat developed a way to
use plasma arc lamps to bond protective metal coatings onto steel
pipes.
The process worked great on
small lengths of pipe. But a problem emerged last year, once MesoCoat built a plant capable of using
its CermaClad process on longer
pieces.
Its plasma arc lamps were run-
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ning for hours
on end, at peak
power
levels.
And the certain
components
couldn’t handle
it, according to
MesoCoat
founder Andrew Sherman
Sherman.
Mattson Technology — a Fremont, Calif.-based company that
sells semiconductor manufacturing
equipment — didn’t have much interest in developing a lamp that
could endure that kind of use. So
MesoCoat decided to develop its
own lamp.
But how to solve the problem?
Well, a plasma lamp “almost exactly simulates the surface of the
sun,” just at a lower intensity level,
according to Sherman. And researchers at NASA Glenn Research
Center know a lot about plasma
lamps and materials that can handle extreme environments. Thus,
MesoCoat asked for help through
the Adopt a City program.
MesoCoat is able to receive up to
40 hours of technical assistance for
free through the program, which is
administered by Magnet, the Cleveland-based manufacturing advocacy group.
Program participants also are eligible to receive loans from the city
of Cleveland and Cuyahoga County, but MesoCoat hasn’t applied for
the money.
NASA Glenn has helped MesoCoat a lot, Sherman said. The company now is running tests on new
components that use a temperature-resistant copper alloy created
at Glenn.
“We are already routinely running components that have much
better lives because of the collaboration,” Sherman said.
■
MesoCoat: Two years of testing awaits
continued from PAGE 5
However, MesoCoat aims to
provide a cheaper way of making
standard pipes stronger, with the
help of a plasma arc lamp that
causes the company’s protective
coatings to bond with the inside of
the pipe.
It’ll be a while before the wearresistant version of MesoCoat’s
CermaClad technology is ready.
MesoCoat and the technical school,
the Northern Alberta Institute of
Technology, plan to spend roughly
two years testing and tweaking the
technology.
Even so, companies working in
Canada’s oil sands region already
have shown interest in the technology: More than 20 energy companies and suppliers working in the
area belong to a consortium that’s
involved with the project, according to MesoCoat founder Andrew
Sherman.
“A number of them are actually
contributing time and effort and resources to this project,” Sherman
said.
If MesoCoat can indeed prove it
has a better, cheaper way to protect
pipes from wear and tear, selling
the technology will be easy, according to CEO Stephen Goss.
“They will be knocking our door
down,” Goss said.
Combined, corrosion and wear
and tear cost Canada’s oil sands industry about $10 billion per year in
maintenance and downtime, according to an interview that Alberta
Oil magazine conducted in March
with John Wolodko, director of an
energy industry consortium called
Materials and Reliability in Oil
Sands.
That market is plenty big, but lots
of other abrasive materials — iron
ore, coal and rock — are transported by pipe in slurry form, according
to Goss.
“That’s exactly why we say the
market is much bigger than just
oil,” he said.
■
Four Seasons: Rent starts at $1,500
continued from PAGE 5
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Now construction crews are
nearing the final lap on the fourth
building in the Four Seasons complex.
Construction workers are laboring on the new, five-story structure’s roof as well as finishing the
interiors of what will be a 143-suite
addition to the complex. The first
suites will be available for residents
in July, and others will come in the
following months.
On a recent tour, the brothers-inlaw outlined how they are crafting
the complex for today’s market. For
one, the suites are about 20% smaller than those in the prior building.
“People today may not have as
much furniture,” Goldberg said.
The new suites have doors as
high as 8 feet and ceilings as high as
10 feet. All the units have patios or
balconies to accent easy outdoor
access and laundries and bathrooms rivaling those of new homes
with large showers and bathtubs.
Kitchens are outfitted with stainless
steel appliances and granite countertops. Unlike older buildings with
separate kitchens, these open into
the living room. The islands also
have a countertop that can serve as
a table typical in today’s homes.
Bell said the two and Goldberg
Co. staffers are constantly fine-tuning suites as they go along.
“We decided we needed another
inch on the countertop to be able to
eat at the island,” he said. “We
changed it.”
Three-bedroom suites in the
fourth phase include two master
bedrooms.
Also different are the community’s amenities. Instead of a party
center, the new building has a pubstyle game room that residents will
be able to reserve for parties or
gather together in the evenings, as
well as a business center like that in
hotels, Goldberg said. A 2,500square-foot fitness center will include a yoga room and look out
over landscaped grounds that include a pond and outdoor kitchen.
A walking trail is going in with this
phase, and the complex’s existing
pool and tennis courts are being
renovated.
However, there is one thing that
tenants will not be able to do at the
new Four Seasons: smoke.
Smoking is not allowed in lobbies, public areas or even inside
suites. Goldberg said the company
will designate a smoking area at a
yet-to-be-determined site on the
premises.
“We’ve had this at our new communities in North Carolina. It’s
been well accepted,” Goldberg said.
In an apartment, second-hand
smoke may seep into halls and other suites. After a tenant who smokes
leaves, the company spends about
$1,000 painting and deodorizing
suites, he said.
“That adds up,” Goldberg said.
“As a company, we build for 50
years (of ownership). We don’t
build to sell.”
There is one way the last act in
Four Seasons is unlikely to surpass
some suites in its predecessor: the
rent.
Suites at the third building in
Four Seasons command some of
the highest rents in Greater Cleveland, Goldberg said, and due to its
larger suites, rents there may exceed those in the newest phase.
That is virtually unheard of in
Northeast Ohio, where new, market-rate projects almost universally
snag top-of-market rents.
However, the rent is definitely for
the upscale crowd.
Rents range from $1,500 for the
smallest one bedroom to as much
as $3,200 for a unit with three bedrooms.
The attention to detail at the latest phase of Four Seasons is what
onlookers expected, said Ralph McGreevy, executive vice president of
the Northeast Ohio Apartment Association trade group.
“I know they studied the market
to add the best amenities. Not
everyone does that,” McGreevy said
of Goldberg Cos. “George Zeiger
Drive in Beachwood is one area that
can use more apartments due to
demand, but there’s no land available.”
That is also true in Goldberg’s
case. The fourth phase of Four Seasons is its last.
■
20140519-NEWS--9-NAT-CCI-CL_--
5/15/2014
3:57 PM
Page 1
MAY 19 - 25, 2014
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
9
Tanglewood: There is
‘less competition’ now
continued from PAGE 4
Call it a comeback
But, in recent years, the place fell
from grace as steeply as a wedge
into the wind.
It went into foreclosure in 2007,
only to be bought out of receivership and then taken over again by
the backers of a failed attempt to resuscitate its business and reputation.
The investors who became the
course’s owners in 2011 — Warren
Wolfson and Mark Tiefel — have
been pouring money into the place
ever since, and it shows.
The swimming pool, which up
until last year was filled with a small
amount of green water and a large
amount of discarded patio furniture, is gone, and new grass has taken its place. The main clubhouse
and banquet facility, which revealed countless buckets and roof
leaks to any golfer willing to put his
hands to the glass and look, has
been completely renovated. A new
deck adorns the back of the clubhouse.
It might even be a little easier to
play, thanks to the removal of more
than 1,000 trees that had died, become sick or grown to block fairways that were out of their reach
when the course was built.
And, as of May 9, the place will
even have a fleet of brand new carts,
Scheetz said.
Anyone want to play?
Will it be enough? Scheetz and his
owners hope so. But even on days
when the weather has been great for
golf, the climate has not been cooperating in recent years.
According to the National Golf
Foundation, about 5 million golfers
have quit the game in the last
decade — and another 5 million of
the remaining 25 million players are
likely to be lost in the years ahead,
according to The New York Times.
Pick your reason: The game is too
tough to learn for new players, who
aren’t as patient as their predecessors. It’s too expensive, too time
consuming — or not exciting
enough for a generation raised on
“extreme” sports.
Whatever the reason, the number
of golfers is declining and courses
are trying hard to fight the headwind. Some are even cutting 15inch holes to make things easier
and speed up play.
But, at the same time, the number of golf courses has also been
dropping. In Northeast Ohio, wellknown courses like Blue Heron in
Medina and Acacia Country Club in
Lyndhurst have shut as courses
here and around the nation have
become parks and housing developments.
Scheetz hopes Tanglewood can
take advantage of the fact that some
courses have disappeared in the
area, while others have seen their
condition deteriorate, and Tanglewood has been improved.
“There’s definitely less competition than there used to be,” Scheetz
said.
Back on course
Tanglewood these days has an
extra club in its bag.
“We’re back in the banquets and
events business,” Scheetz said, noting that the club already has hosted
more than 100 events in the last
year, with more on its books. They
range from small business networking groups to proms, political
events and large parties and weddings. There have been more than
35 weddings since early 2013,
Scheetz said.
That event business is one that
many clubs, especially public clubs
like Tanglewood, can’t compete
with, as few of them have anything
like the 140,000 square feet of clubhouse space that Tanglewood
boasts.
In the meantime, there are signs
that the investment in the course itself — which accounts for about
$600,000 of the $1 million or so
that’s been sunk into the place in
the last two years — is paying off.
Many area high school and college players have begun flocking to
the course and to Tanglewood’s
well-known PGA instructor, Ross
Keen. This summer, the course will
host a North Coast Junior Tour
event.
“Now I just hope the weather gets
warmer,” Scheetz said, one day before Northeast Ohio saw its first 80degree day of the year.
■
DAN SHINGLER
About $600,000 of the more than $1 million that has been invested in Tanglewood Golf Course in the last two years has
gone to the course itself.
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SPR Therapeutics gets $2.9 million grant
ON THE WEB Story from possible.”
Medical device
www.crainscleveland.com The study is takcompany SPR Therapeutics of Cleveland
ing place at hospireceived a $2.9 million Small Busitals and research centers in sites in
ness Innovation Research (SBIR)
New York City, Chicago, Charlotte
grant from the National Institutes of
and West Orange, N.J.
Health to support the collection of
SPR Therapeutics said the grant
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cialize its Smartpatch peripheral
successful completion of SPR’s earnerve stimulation system for treatlier research in which the majority of
ment of post-stroke shoulder pain.
study participants reported pain re“We are very pleased to have relief and improvements in their qualiceived this grant following the rigorty of life.”
ous and competitive review process
The Smartpatch system provides
established by the National Instia short-term therapy that uses a
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president and CEO of SPR Therashoulder. The lead is implanted uspeutics, in a news release. “These
ing a small-diameter needle. It exits
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ment in our ongoing study and posiexternal device that stimulates the
tion us to advance this promising
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20140519-NEWS--10-NAT-CCI-CL_--
10
5/15/2014
4:19 PM
CRAIN’S CLEVELAND BUSINESS
Page 1
WWW.CRAINSCLEVELAND.COM
MAY 19 - 25, 2014
PUBLISHER:
John Campanelli ([email protected])
EDITOR:
Elizabeth McIntyre ([email protected])
MANAGING EDITOR:
Scott Suttell ([email protected])
OPINION
Speak up
T
here are more than 3,300 Northeast Ohioans
who have jobs — good ones — because of the
work done at NASA Glenn Research Center.
About 1,600 center employees and 1,750 contractors
are robust contributors to the economy and intellectual energy of Northeast Ohio, and Glenn has a
vital position in helping the region continue to pivot
to a position of brain gain from brain drain.
It’s critical, then, that our elected representatives
and the corporate community recognize budgetary
threats being posed to Glenn and speak out in support of stronger funding for the center, particularly
in the area of space technology.
This is hardly a new phenomenon.
As Crain’s reporter Chuck Soder wrote in March,
Glenn’s budget has shrunk considerably in the past
few years and now hovers around $581 million,
down from $645 million in fiscal 2012. Meanwhile,
funding for space technology — the key to human
and robotic exploration of space — at Glenn has
shown a disturbing pattern in which actual funding
levels have been far below levels initially proposed
by the White House. In fiscal 2013, for instance, the
$126 million proposed space technology budget for
Glenn gave way to actual funding of $54.4 million.
Fiscal 2014 was even worse: $168 million proposed,
$33.5 million actual. For fiscal 2015, the proposed
number is only $97.3 million; the actual number
won’t be pleasant if this trend continues.
Glenn has a curiously low profile in Northeast
Ohio, which might explain why it doesn’t have highprofile support from members of the local congressional delegation or either of the state’s U.S. senators. By contrast, U.S. Sen. Richard Shelby,
R-Alabama, practically makes a second home of
Marshall Space Flight Center in Huntsville — and he
makes funding for that center a top priority.
This region’s politicians need to start making
more noise in Washington about the value Glenn
provides to Northeast Ohio and the role it plays in
fulfilling NASA’s space technology mission.
High time
W
e’d say this even if the Cleveland Browns’
best player, wide receiver Josh Gordon,
weren’t facing a possible suspension for the
2014 season: The NFL should revamp a drug policy
that winds up imposing a one-year ban for weed.
Gordon reportedly tested positive recently for
marijuana and, because he’s believed to be in stage
three of the NFL’s substance abuse program, could
be suspended for 16 games.
Marijuana use remains illegal in most places, and
it violates federal law. But clearly, the cultural tide is
turning, as states across the country are legalizing
marijuana for medicinal use, and Colorado and
Washington state have decriminalized it altogether.
A year-long ban is a punishment that doesn’t fit
the crime in 2014. ESPN reported last week that the
NFL is considering changes in its policy that would
include a higher threshold for a positive marijuana
test and reduced punishments for violations regarding the drug. Those would be good steps and would
mark the NFL as a forward thinker on an issue many
companies face.
FROM THE PUBLISHER
Make room for young professionals
J
folks often forget. YPs freust before noon last SunJOHN
quently face skepticism about
day, my son looked up
from his comic book to- CAMPANELLI their skills. Many older coworkers feel threatened by talward my wife.
ented youngsters and show it,
“Mom,” he said, “since it’s
sometimes with hostility. And
Mother’s Day, you can cook
then there’s the culture shock
me whatever you want for
of entering a world of
lunch today.”
Boomers and X-ers who do so
He was kidding.
But over the years on Mothmany things differently. Of
er’s Day or Father’s Day, both
course YPs face all this with an
my kids have pondered the
unbuilt reputation, a small
calendar and asked, in all serinetwork of friends and coousness, “Why isn’t there a ‘Kid’s Day’?”
horts (who are often as young as they
The automatic answer, programmed
are) and a small salary. Many times they
inside parents’ DNA, is, of course: “Beare a stranger in a new city, too.
cause every day is kid’s day.”
We Clevelanders need to make life as
Most of us would love to be kids again,
easy as possible on YPs. We need to lure
playing all day, sleeping all night and
them, welcome them to our world and
eating through the fridge with little or no
do whatever we can to keep them.
consequence to how our Toughskins
It’s one thing to say that and wring our
jeans fit.
hands; it’s another thing to actually do
We seem to forget about the stress of
something. Engage Cleveland is. The orschool, the cruelness of other kids, the
ganization that serves Cleveland’s young
almost debilitating awkwardness of adoprofessional community has circled Oct.
lescence. And the fears: from strangers
6-12 on the calendar for the first-ever
and monsters to death and divorce.
Cleveland YP Week.
Being young is both gift and curse.
Engage Executive Director Ashley
It’s true in business as well. Young
Basile Oeken told me last week that
professionals have problems that older
Cleveland is late to this effort. Cities like
Pittsburgh, Nashville and Milwaukee
have lapped us. And, believe me, this is a
competition. The winners take home the
talent. Milwaukee has done a YP Week
for years, drawing more than 4,000 people to its most recent week last month.
The plan in Cleveland is for morning
events centered around wellness activities like yoga, hikes and runs. Lunch
events will feature speakers. The
evenings will be filled with social events.
Daily themes will include economic development, talent, community, culture
and entrepreneurship.
The goal here is to raise awareness of
the young professional demographic, to
connect YPs to the community, to acclimate newcomers and, ultimately, to turn
YPs into permanent CPs (Cleveland professionals).
“YPs who feel engaged, who feel they
are making a difference, are two to three
times more likely to stay,” Basile Oeken
said.
She’s looking for the business community to mark their calendars and join
the fun. Why not free up your YPs to attend the events or go yourself?
She assured me that if you show up and
you’re over 40, you will not be carded. ■
TALK ON THE WEB
Re: Dressing for success
■ Ginger Casey’s observations in her
May 12 Personal View, “Female newscasters deserve much better than ‘window dressing’ status,” are sobering.
I find appalling the idea that women
are being overtly encouraged to use bare
arms, legs and cleavage to sell the news.
Shame on the executives who undermine the credibility not only of women
reporters and anchors, but the news itself. And pity the women who go along
with it. It’s sad that the hard work that
was done by feminists in the ‘70s and
‘80s has come to this.
What I find even more troubling is
what’s happening in business offices
where I honestly do not believe bosses
encourage skimpy wardrobes. I’ve seen
many young women sitting at the conference table wearing plunging necklines
Reader responses to stories
and blogs that appeared on:
www.crainscleveland.com
and clutching their cardis closed at the
neck, clearly uncomfortable in the outfits they have chosen. I don’t know if it’s
the air-conditioning, or repressed modesty, or a combination of the two, that
causes the sweater clutching, but either
way, it’s enough to make everyone in the
room uncomfortable.
I’ve always felt, even back in the day
when I felt good about my upper arms,
that the last thing I want a work colleague thinking about is my body parts.
It’s hard enough to get across one’s good
ideas. Why bring your own irrelevant distraction into the room?
See WEB Page 11
POLL POSITIONS
How do you feel about the
Browns’ future since the end
of the 2013 season?
Better. The team is headed in the right
direction.
58.0%
Worse. The team has taken a step back.
9.9%
Same. It's been par for the course.
33.0%
Vote in the poll each week at:
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20140519-NEWS--11-NAT-CCI-CL_--
5/15/2014
2:53 PM
Page 1
MAY 19 - 25, 2014
LETTER
M
11
FOR SALE OR LEASE
Share info with your investors
acNealy Hoover Investment Management has
been a long-term supportive shareholder of Central Federal
Bancorp.
We participated in their previous
recapitalization and as of Dec. 31,
2013, have shared voting power for
1,333,914 shares or 8.4% of the
shares outstanding of common
stock.
I am extremely dismayed by the
institution’s decision to increase
their existing capital base by as
much as 50% without notifying existing shareholders as to the terms
of the agreement and without providing equal access to the offering
to all shareholders.
Because Central Federal didn’t
make the offer available to all
shareholders, the company is re-
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
quiring that potential investors sign
a confidentiality agreement before
examining the offering.
As a Registered Investment Adviser, I am unable to sign any document which would restrict me
from taking any actions that I
deemed to be in the best interest of
my clients.
Clearly, this behind-closed-doors
arrangement disadvantages the
very shareholders who helped this
management team through the recapitalization process and who
have been loyal supporters of Central Federal.
I am unable to evaluate the merits of the offering because I can’t review the offering until after it is
completed. If companies choose to
keep their shareholders in the dark,
they should not be publicly traded
companies! These special arrangement capital offerings have no
place in the financial markets. Publicly traded companies should
strive to be more transparent than
this and should remember their
fiduciary responsibilities to all
shareholders.
Someday, these recent events
may become a classic case study
providing insight into how NOT to
build trust and loyalty throughout
your shareholder base.
Harry C.C. MacNealy
CEO, MacNealy Hoover Investment
Management
Canton
(MacNealy Hoover is an SEC Registered Investment Advisory firm
that says it manages about $230
million for 93 clients.)
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continued from PAGE 10
Thanks to Ginger for raising the issue. I hope this discussion will help
our younger sisters see that they are
not helping themselves by shifting
the focus from the work they are doing to what’s under the clothes they
are (or aren’t) wearing.
— Judi Pfancuff
Issue date: June 2 • Ad close: May 22 • Materials due: May 27
Re: Cavaliers fire Mike
Brown
■ Mike Brown has been re-hashed
so many times, he’s illegal even in
Colorado.
— James Schade
■ $20 million to not coach. Oh, the
pain. Oh, the agony.
— jpbincle
Re: MetroHealth’s plan
for the future
■ I have the pleasure of working with
Dr. Akram Boutros, the CEO at
MetroHealth. He is the real deal and
the right man for the job.
— Jerry Loudin
ANDY LYONS/GETTY IMAGES
Mike Brown was fired one season after he was rehired as the Cavaliers’ coach.
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20140519-NEWS--12-NAT-CCI-CL_--
12
5/15/2014
3:11 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 19 - 25, 2014
GOING PLACES
JOB CHANGES
ARCHITECTURE
KA: Graham Post to senior design
architect.
We Solve Problems.
Effectively. Efficiently. Consistently.
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Chagrin Falls
440-571-7777
We are a different kind of business law firm.
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call us to discuss your legal matter.
@CrainsCleveland
#CrainsMeetings
THE THREE-C COMPETITION
WESTLAKE REED LESKOSKY:
Matthew A. Janiak to principal,
project designer/director; Ruth
Albertelli to associate principal,
director of specifications; Patrick
James Hyland Jr. to associate
principal, architect; Jason A.
Majerus to associate principal,
manager of mechanical engineering;
Christopher B. Tilton to associate
principal, lighting designer, theatrical
specialist; Dana O. Foerster,
Christopher Loeser, Todd
Mayher, Brant P. Miller and
Katherine Ritzmann to associates;
Diane Bartlett to chief financial
officer.
GILBANE BUILDING CO.: Todd
Gerber to senior project manager;
Scott Bindel, Travis Okel, John
Coughlin, Dan Focht, Cameron
Hill, Dave Kleckner and Matt
O’Donnell to project managers;
Chris Kowalczyk to senior project
engineer; Lenny Jatsek and Kyle
Wengryniuk to project engineers;
Annette McMillen to human
resources generalist.
How do these three cities match up when it comes to
SEA-LAND CHEMICAL CO.:
Sakura Olah to director, customer
relations and international operations;
Craig Lundell to director, supplier
relations.
The staff’s favorite tweets will be featured in our May 26 issue.
EDUCATION
CUYAHOGA COMMUNITY
COLLEGE: Terri Pope to president,
Westshore Campus.
NOTRE DAME COLLEGE: Thomas
Kruczek to president.
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TECHNOLOGY
W.F. HANN & SONS: Saul
Weinberg to sales manager and vice
president, marketing; Jay Faust to
service manager.
OECONNECTION: Igor
Bondarenko to director,
applications.
BOARDS
LEGAL
DISTRIBUTION
Join the conversation - tell us your thoughts!
Olah
CONSTRUCTION
CLEVELAND vs. COLUMBUS vs. CINCINNATI
MEETINGS AND CONVENTIONS?
Janiak
ENGINEERING
R.E. WARNER & ASSOCIATES:
Wayne Powell to senior project
manager/engineer; Laura Rhodes
and Dustin Addair to survey
technicians.
FINANCE
KEYBANK: Brian Rosenfelt to vice
president, senior relationship
manager, business banking.
HEALTH CARE
PRIORITY HOME HEALTH CARE
INC.: Wesley Fellure to branch
manager; Amber Gheta to medical
records assistant.
WELTMAN, WEINBERG & REIS
CO. LPA: Scott D. Fink to business
unit leader, Bankruptcy Practice
Group.
MARKETING
STUDIO GRAPHIQUE: Jamie
Wilhelm to senior design consultant;
Meaghan Earley to administrative
assistant.
THUNDER::TECH: Julie Symonds
to manager, communications; Justin
Schickler to account manager; Jeff
McManamon to account
coordinator.
RETAIL
STERLING JEWELERS INC.:
Robert L. Knapp II to senior vice
president, Strategic Initiative
Integration and Distribution Center;
Bryan Morgan to senior vice
president, corporate supply chain
management and facilities.
SERVICE
PATTIE GROUP INC.: Jonas G.
Pattie to president; Brian Pattie to
executive vice president; Carla
Pattie-Fitzpatrick to HR and
administrative manager.
NATIONAL COUNCIL OF JEWISH
WOMEN/CLEVELAND: Linda
Barnett to president.
AWARDS
LAKE COMMUNICATORS: Phil
Stella (Effective Training &
Communication Inc.) received the
Apex Award for Copywriting.
NATIONAL COUNCIL OF JEWISH
WOMEN/CLEVELAND: Lynn
Kleinman received the Arline B.
Pritcher Award and Rochelle
Solomon received the Alice and
Eugene Weiss Esteemed Service
Award.
OHIO SOCIETY OF
HEALTH-SYSTEM PHARMACISTS:
Mate Soric (University Hospitals
Geauga Medical Center) received the
Pharmacist of the Year Award.
RETIREMENT
MAZANEC, RASKIN & RYER CO.
LPA: Co-founding partner Edward
M. Ryder after 30 years of service
and leadership. Ryder will
transition to of counsel.
Send information for Going Places
to [email protected].
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20140519-NEWS--13-NAT-CCI-CL_--
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3:18 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
MAY 19 - 25, 2014
INSIDE
14-15
PROGRAM
BENEFITS STUDENTS WITH
INTELLECTUAL DISABILITIES
13
HIGHER ED
GRADS ASKED EARLY ON
TO LEND A HELPING HAND
DONGYUN LEE
At many universities, both here and nationally, ‘culture of giving’ begins with current students and recent alumni
By TIMOTHY MAGAW
[email protected]
G
raduation season is nigh, and
many soon-to-be college
graduates anxiously awaiting
job offers are instead finding pleas
from their alma mater to give
money.
In fact, more so than ever, colleges and universities are making a
concerted effort to tap into their
newly minted — and thus less afflu-
ent — alumni for cash. Many universities even field donations from
current students.
Take Kent State, which in 2006
launched a fundraising effort —
now dubbed Flashanthropy — primarily focused on raising funds
from undergrads for scholarships.
The endowment from the effort sits
at about $100,000.
Higher ed administrators insist
they’re not looking for blockbuster
donations from these fresh grads or
current students but simply trying
to instill what many of them refer to
as a “culture of giving.”
Ponying up a $500 check, of
course, would be appreciated, but
they’re asking for just a few bucks a
year — perhaps what someone
might spend each week at
Starbucks.
“If someone is willing to take $1,
$5 or $10 out of their pocket every
year, that is a vote of confidence in
Kent State,” said Cynthia Crimmins,
Kent State’s associate vice president
for advancement operations.
“That’s what we’re trying to develop
in younger graduates.”
For the most part, higher ed philanthropy has rebounded from the
doldrums of the recession.
Last year, colleges and
universities across the country
brought in a record $33.8 billion,
according to a recent survey from
the Council for Aid to Education.
See HELPING Page 17
“If someone is willing
to take $1, $5 or $10
out of their pocket
every year, that is a
vote of confidence in
Kent State.”
– Cynthia Crimmins
associate vice president for
advancement operations,
Kent State University
Pre-college programs keep campuses busy in summer
By SHARON SCHNALL
[email protected]
O
n college campuses across
Northeast Ohio, grounds
crews are readying for commencement, housing staffs are finalizing dormitory closings and others
are simply regrouping, breathing a
much-awaited sigh of relief.
Not so for Lisa Schneider, associate director of strategic academic initiatives at Hiram College. The
next two months easily represent
the busiest time of year for her department at the Portage County
private college.
“For us, the campus is beautiful
in the summer,” she said. “The
summer is so pretty here. This is
when students need to be here.”
Be there they will, but it won’t
necessarily be the undergraduates.
Rather, taking over the campus will
be incoming high school juniors
and seniors, typically from Ohio and
Pennsylvania and some from as far
away as Colorado and New York.
Next month and through July,
the institution will host Hiram
College Summer Academies.
Fourteen residential or overnight
academies will serve an estimated
270 students. Schneider has overseen the program since 2006,
when it became a dedicated
department focusing on pre-college summer academy initiatives.
Offerings this year have increased significantly from five to
14, including business and leadership; science, nature and technology; and writing, theater and film
categories.
See PROGRAMS Page 16
20140519-NEWS--14-NAT-CCI-CL_--
5/15/2014
3:47 PM
Page 1
HIGHER EDUCATION
14 CRAIN’S CLEVELAND BUSINESS
MAY 19 - 25, 2014
Students with intellectual disabilities feel at home
Kent State is one of two Ohio universities to
receive federal grants for inclusive program
By SHARON SCHNALL
[email protected]
C
atherine has just finished
her junior year at Kent State
University. The former Westlake resident, 21, has lived on campus since her sophomore year,
works at a nursing home and to
further that professional interest,
completed an undergraduate
gerontology class.
Asked why she wanted to attend
Kent State, Catherine’s answer was
straightforward.
“Because both my sister and
brother went to college, I wanted
to go to college. I told my mother,
‘Why can’t I come, too?’ They (my
parents) thought it was a good
idea,” she said.
Yet, for Catherine and 18 other
Kent State juniors with intellectual
disabilities, until recently, postsecondary opportunities were limited.
That started to change after
2010, when the first Model Transition and Postsecondary Program
for Students with Intellectual Disabilities (TPSID) grants were given
to schools such as Kent State.
TPSID funding enables higher
education grantees to develop inclusive post-secondary programming for students with intellectual
disabilities that improves employment outcomes and increases academic, independent living, social
and occupational skills.
In Ohio, Kent State University
and Ohio State University were the
only 2010 TPSID grantees; 27 institutions across 23 states received
PROGRAM HISTORY
Post-secondary programming for
students with intellectual disabilities
has been in existence for 25 to 30
years, but programs were isolated,
functioning without a coordinating
entity or national awareness, according to Debra Hart, director of education and transition at the Institute for
Community Inclusion with the University of Massachusetts-Boston.
When President George W. Bush
in 2008 signed into law the reauthorization of the Higher Education
Opportunity Act of 1965, it defined
intellectual disabilities and made
students with intellectual disabilities
eligible for federal financial aid if
attending a comprehensive transition
and postsecondary program.
Subsequently, Congress appropriated more than $10.5 million to fund
a model demonstration program,
encompassing the Model Transition
and Postsecondary Program for
Students with Intellectual Disabilities
and the Think College National Coordinating Center, which is based at
UMass Boston’s Institute for Community Inclusion.
— Sharon Schnall
these grants.
By the grant’s five-year completion, based on average annual
funds awarded thus far, Kent State
could receive an estimated $1.8
million in funds. Ohio State may
receive an estimated $2.2 million.
Additionally, a portion of the
Ohio State TPSID grant is funding
four Ohio replication project sites,
including since 2012 Youngstown
SHARON SCHNALL
Career and Community Studies students can attend a financial literacy class, which also is offered for attendance to undergraduate and graduate students who plan to pursue careers as special educators. (See story, Page 15)
State University, said Margo Vreeburg Izzo, program director of transition services and Ohio State’s TPSID project director.
Inclusion on campus
Offering a program with a 50% inclusion factor was one of the TPSID
grant applicant criteria. Kent State’s
program reflects a 70% to 80% inclusion factor, said Vonnie Michali, director of program development at
Kent State’s Career and Community
Studies (CCS), a four-year, 120-credit
hour, non-degree program for students with intellectual disabilities. It
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is funded by the TPSID grant.
Inclusion reflects campuswide
integration of students with intellectual disabilities into the academic, administrative, extracurricular and social infrastructures.
Finding interested, eligible students was not hard: More than 60
students, ages 18 to 22, applied,
having heard about Kent State’s
program through public school
district contacts and media coverage, and 21 were accepted.
The now-19 participating students, 14 women and five men,
come from Ohio communities as
far away as a 90-minute drive. Four
students have lived on campus
since sophomore year, while the
majority are legal adults, with
three or four having a legal
guardian, Michali said.
The four-year program, offered
through the College of Education,
Health and Human Services, includes specialized classes focusing
on personal and social skills, independent living and career and occupation; classes from Kent State’s
curriculum; and employment and
internship placements.
As incoming seniors this August,
the 19 classmates will be completing their final courses and work experiences, and will be encouraged
to connect with formal community
services and supported living
arrangements, either on their own
or with family.
“The only cost to students, at
this time, is the cost of transportation, textbooks and class materials
and food. Students, during this development phase, did not have to
pay tuition,” Michali said. Those
students living in a dormitory were
responsible for that cost.
In spring 2015, a proposed target
of 10 new students will be recruited to the program and will start
classes in August 2015; another 10
freshmen will enroll in August
2016. A total of 40 students — incoming freshmen through seniors
— are anticipated by August 2018.
“New students coming in can
expect to pay the same tuition and
boarding as any Kent State University student,” along with additional
support and guidance costs,
Michali said.
See STUDENTS Page 15
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20140519-NEWS--15-NAT-CCI-CL_--
5/15/2014
3:50 PM
Page 1
HIGHER EDUCATION
MAY 19 - 25, 2014
CRAIN’S CLEVELAND BUSINESS 15
Managing money is
part of the plan, too
Students:
Program is
seen as key
opportunity
By SHARON SCHNALL
[email protected]
T
continued from PAGE 14
Finally, college opportunities
Maddie, 21, like Catherine, wanted to
attend college. A commuting junior
from Atwater, in Portage County, she is
interested in therapeutic riding. Her father, a Kent State employee and alumnus, learned about the school’s CCS
program through an article, she said.
“I said, ‘Finally,’ because toward the
end of my (high school) senior year,
all my friends were talking college and
I was kind of feeling left out,” Maddie
said. “I was excited because I love
school so much.”
While at Kent State, CCS students
take classes at the 1000 or introductory
level; most do not go beyond the 2000
level, Michali said. However, depending
on abilities, a few have taken higher or
3000/4000 level undergraduate courses.
“This is usually done with close
communication, accommodations,
modification and agreement with
faculty,” she added.
To date, about 60 student-faculty conferences have taken place. Accommodations may be as simple as trimming a
five-page assignment to two pages, said
Cindy Kenyon, director of program operations in the CCS program.
“I had one student,” Kenyon said,
“who looked at the professor and said,
‘My brain works differently and I may
miss part of the lecture,’ and the
professor responded to the student
saying, ‘Well, what can I do to help?’”
When Maddie took “Music as a
SHARON SCHNALL PHOTOS
TOP: Cindy Kenyon, left, is the director of program operations, and Vonnie Michali is
the director of program development of Kent State’s Career and Community Studies.
BOTTOM: The financial literacy class is attended by a mix of CCS students as well as
undergraduate and graduate students interested in special education.
World Phenomenon,” she, the professor and a CCS representative met and
discussed expectations and accommodations.
“We explain to them (faculty) what
the contract is,” Maddie said. “You
decide if you want to earn a grade or if
you want pass/fail. I started doing
pass/fail. The second time, I did the
same thing, but this year I did a letter
grade. Vonnie (Michali) thought I was
■
up for a challenge.”
he early afternoon class has started in the College of Education, Health and Human Services building at Kent State
University. Desks are covered with the ubiquitous notebooks, overstuffed backpacks, water bottles and lunches
grabbed on the go.
“We talked about this before,” says Joanne Caniglia, an associate professor of teaching, learning and curriculum studies.
“What’s the difference between fixed and variable costs?”
A collective groan is audible, but for the next hour the juniors,
who have intellectual disabilities, maintain a thoughtful discussion about financial planning, personal budgets and savings objectives.
The class is “Financial Literacy,” and these students are part
of the Career and Community Studies program, a first-time,
four-year non-degree program offered through the College of
Education, Health and Human Services and funded by a Model
Transition and Postsecondary Program for Students with Intellectual Disabilities (TPSID) grant.
“The math content is essential because they need number skills
and problem-solving skills,” Caniglia said. “I want them to have a
good sense. ... They’re also the ones most vulnerable to fraud. It’s
so important that they don’t get taken in by individuals.”
The class also is attended by undergraduate and graduate students who plan to pursue careers as special educators. Others
are interested in becoming special education intervention specialists.
The class offers several layers of educational opportunity:
■ Curriculum designed for the students with intellectual disabilities. Today’s class covered budgeting and financial planning and the math operations needed to save money and pay
bills.
■ For the special education majors, the integrated environment provides real-life, on-campus field experience.
■ For faculty, the program helps with knowledge, insight and
pedagogy acquired from developing and teaching curriculum to
students with intellectual disabilities and learning which teaching strategies work.
“I like to tell myself to wait and listen. I have become so
much more aware of how different students learn,” Caniglia
said.
“Now I understand what they can and cannot do. I also understand self-determination. You want to help, but you can help too
much. I’ve learned to step back and let them do it.”
■
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20140519-NEWS--16-NAT-CCI-CL_--
5/15/2014
3:19 PM
Page 1
HIGHER EDUCATION
16 CRAIN’S CLEVELAND BUSINESS
MAY 19 - 25, 2014
Programs: Soft-sell of school favored
continued from PAGE 13
“We’re hoping by increasing the
number of camps, we will increase
the number of students coming to
the campus,” said Brittany Jackson, assistant director of strategic
planning. “They will see the campus is a busy place no matter what
time of year.”
Looking forward to summer
Attendance might increase, but
what will stay the same is the small
group participation, cool counselors — themselves students at
the college — and enthusiastic faculty.
And it’s not just at Hiram College.
“It’s the week I look forward to
all year,” said Ed Meyer, chairman
of the physics department at Baldwin Wallace University. “It’s exhausting, but the students have a
blast. To work with young people,
when you see the light go on, it’s
worth it.”
In 2009, Meyer launched the
Gedanken Institute for Problem
Solving, held at Baldwin Wallace
and offering participants challenging real-world problem solving exercises. The areas from which the
problems are chosen include risk
management, logic, pattern recog-
SHARON SCHNALL PHOTOS
ABOVE: Lisa Schneider, left, is the
associate director of strategic
academic initiatives, and Brittany
Jackson is the assistant director of
strategic planning at Hiram College.
RIGHT: A robotics academy will be
held at Hiram College from July 7 to
July 10. Here, students are shown
during last year’s camp.
nition, operations research, topology and engineering.
This July, the five-day institute
will serve 20 day students, primarily ages 12 to 16.
“This can be a life-changing
event for a student,” Meyer said.
“It’s also an opportunity for them
to develop social capital: to get to
spend eight or nine hours a day
with people who think like them.”
Meyer is contemplating, sched-
ule permitting, introducing a oneweek residential camp next year.
Meyer isn’t the only brave academic embracing overnight programming.
Last summer, Youngstown State
University piloted a residential offering as part of its longstanding
Summer Honors Institute, which
serves gifted and talented incoming high school juniors and seniors.
Attendees were primarily from
the Youngstown area but others
came from Akron and Cleveland.
Kansas and Pennsylvania also
were represented, said Amy
Cossentino, director of the institute and assistant director of the
university scholars and honors
program.
The pilot was introduced to provide more opportunities, including social and networking, that
could be fostered in the residential
setting. The overnight option also
eased Clevelanders one-hour plus
daily commutes.
The pilot was a success, and
next month the new residential
program will serve 20 students
with another 70 attending the day
program.
All select a morning and afternoon camp from among 10 offer-
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Searching for summer
academics
While high school summer
sports and band camps are readily
found at Ohio higher education institutions, the same may not be
said for academic camps, particularly overnight camps targeted exclusively toward academically driven high schoolers. Consider
affordability, and choice is further
narrowed, increasing the need for
diligent searching.
Availability, in part, was impacted by state cutbacks. Around fiscal
year 2008, participating Ohio
colleges and universities experienced the end of longtime summer
honors institute or gifted and
talented state funding — close
to $1 million annually, a government spokesperson confirmed.
At Youngstown State alone,
those state cuts resulted in a
$100,000 reduction per summer,
Cossentino said. Since then, the
university has picked up some of
the cost, although operating at a
much-reduced budget.
The Summer Honors Institute at
Youngstown State is $75 for the
five-day commuter program and
$350 for the five-day overnight
program. At Hiram College, the
three-day overnight academies are
$200; most of the four-day
overnight academies are $300.
Gedanken’s five-day commuter
program is $399.
Elsewhere, a two-week Shipwreck Camp at Case Western Reserve University, a day science
program for 12- to 15-year-olds, is
offered in July at $525; two hours
south, Kenyon College in Gambier
offers the overnight three-week
Camp 4 Scholars next month for
high schoolers, priced at $3,500.
Fun first; higher education
second
While some summer programs
grow in reach and scope, what has
not changed is the fact that the
programs aren’t intended to be
hard-selling recruiting tools.
If individual campers ask to talk
to an admissions counselor, that
can be arranged, otherwise faculty,
staff and counselors follow a longheld belief in the “soft-sell,” and,
by example, represent the college.
“They (high school students)
asked us questions, not about Hiram, but about college in general.
… They wanted advice,” said Adrianne Miller, a 2010 Hiram College
graduate, who worked four seasons as a summer counselor and is
now a development services and
stewardship coordinator at the
University of Michigan.
Over the years, Hiram’s approach has been fine-tuned: a
scavenger hunt gives campers a
chance to fully see the campus. Beginning last year and again this
year, summer academy alumni are
eligible for a $1,000 scholarship,
renewable up to four years or a total of $4,000, if they enroll as fulltime students at the college.
According to Schneider, approximately 8% of the summer academy
participants who were eligible to
enroll in higher education between
fall 2007 and fall 2013 enrolled at
Hiram College, or 36 of 440
campers; approximately 11% of the
“Emerging Writing Workshop in
Creative Nonfiction” academy
alumni alone enrolled at Hiram.
“They (high school
students) asked us
questions, not about
Hiram, but about college
in general. ... They wanted
advice.”
– Adrianne Miller
2010 Hiram College graduate, on
working as a summer counselor
Youngstown State follows a
similar approach. The Summer
Honors Institute exists to offer likeminded gifted and talented students
social, curriculum and technology
options beyond what is possible at
high school, not to “generate applications,” Cossentino said.
Since 2012, a “mini college fair”
has been offered, lasting 45 minutes, for students and family and
friends, the latter who are on hand
for a last-day end-of-camp celebration. The fair, Cossentino said,
was added in response to evaluation requests that asked how students and families could get more
information about Youngstown
State and be connected with key
department representatives.
“Whether or not they actually
enroll themselves at the university,
(the camps are) a good thing we as
an institution are doing” Cossentino said. “No matter where these
kids go they will be our future
leaders.”
■
20140519-NEWS--17-NAT-CCI-CL_--
5/16/2014
4:38 PM
Page 1
HIGHER EDUCATION
MAY 19 - 25, 2014
CRAIN’S CLEVELAND BUSINESS 17
Helping: Survey reports decline in alumni participation
continued from PAGE 13
While that number is encouraging, the survey reported a decline
in alumni participation, as 8.2% of
alumni gave to their alma mater in
2013, slipping from 9.2% the
previous year. Donor retention remains strong, however, but
fundraisers say persuading former
donors to pick up their checkbook
remains a challenge.
“It’s important to establish a
habit of giving,” said Aimee Bell,
the director of annual giving at
Baldwin Wallace University in
Berea.
Bell said once graduates give
three to five years in a row, you’ve
got them for life.
That’s why colleges are so intent
on bringing young donors into the
fold, even if their gifts are only
drops in the bucket. For instance,
only about 1% of Kent State’s philanthropy comes from donors who
are 30 years old and younger, and
the bulk of University of Akron’s
fundraising comes from alumni
who have been out of school for
more than two decades.
“There’s no question that getting young alumni involved in
fundraising programs early on is
important,” said William Walker,
the interim vice president of advancement operations at the
Council for Advancement and
Support of Education, a Washington, D.C.-based professional organization representing fundraising
professionals in education. “Successful fundraising programs are
long-term operations. You have to
constantly be looking into the future.”
‘But I’ve got debt!’
On average, Ohioans graduate
SURVEY SAYS ...
A look at the Northeast Ohio
colleges and universities that
responded to the Voluntary
Support of Education survey. Listed
is each institution’s amount raised
in 2013:
Institution
Akron
Amount
$45,303,512
Baldwin Wallace
$10,302,017
Case Western
$94,237,501
Cleveland State
$6,162,934
Hiram
$4,658,081
John Carroll
$10,206,749
Kent State
$18,804,763
Oberlin
$31,350,661
Source: Council for Aid to Education
with more than $29,000 in student
debt, potentially saddling them
with several years worth of burdensome monthly payments, according to the most recent data
from Project on Student Debt, an
annual report prepared by the national nonprofit Institute for College Access and Success. For some
recent grads, fielding fundraising
pitches just as they’ve begun paying off their education is — to put
it mildly — inappropriate.
“While fundraising, institutions
need to be sensitive to the fact that
student debt is much more of an
issue than it ever was in the past,”
Walker said.
Student loan debt is rising up as
one of the biggest roadblocks to
young alumni giving, according to
Devin T. Mathias, a consultant with
Marts & Lundy, a New Jersey-based
fundraising consultancy. Mathias
said in an email that it was impor-
tant for each institution to conduct
its own research to determine what
barriers to giving exist.
Danielle Young, executive director of the Oberlin College alumni
association agrees that student
debt is a “really hot topic on the
mind of students.” She said she’s
had to adjust her pitch to young
alums or current students around
giving. She’s had to stress that not
all costs of a student’s education
are covered by tuition dollars,
highlighting the importance of
paying it forward for future students.
“As tuition starts to rise, some
students start to think, ‘Well,
haven’t I given enough through
my tuition dollars?’ Young said.
She added, “Oberlin is a toplevel liberal arts college. The primary costs are for faculty salaries
and benefits. It costs a lot to produce the level of education we offer.”
Brian Breittholz, Cleveland
State’s assistant vice president for
alumni relations and executive director of the alumni association,
said if anything the student debt
crisis has put a spotlight on the
need for stronger rates of giving
among graduates.
“I don’t know if student debt’s
made it a harder sell, but it certainly is an issue that is raised
more,” Breittholz said. “At the
same time, one could argue
there’s a greater need for philanthropic support. Most of our students receive some sort of financial support.”
Tough to reach
Kent State officials say they
don’t leave much of a cushion between graduation and when they
start asking for money. Cleveland
State, on the other hand, said it
gives grads between six months
and a year before it starts soliciting. The University of Akron waits
about six months before it contacts its graduates, but university
officials say at that point they’re
mostly trying to gather contact information, though a small
fundraising pitch is part of the
outreach.
Keeping them engaged and connected is the ultimate goal. The
University of Akron, for example,
recently launched a new alumni
volunteer program — The Roo
Crew — which allows alumni of all
ages to give back, not with funds,
but with their time and talent by
helping with recruitment, student
success initiatives and job placement.
Phone banking, however, remains one of the primary vehicles
for keeping in touch with alumni,
though even that has become
more difficult. As the use of landlines continues to dwindle, universities have had a more difficult
time contacting grads. As such,
colleges and universities have
made an attempt to do more outreach through social media channels such as Facebook and Twitter. They also often reach out
before graduation for cell phone
numbers and email addresses in
hopes of keeping in touch.
“It’s getting harder and harder,”
Kent State’s Crimmins said. “We
haven’t pulled back on (phone
banking). It’s just as important to
have that connection to let people
know what’s happening on campus as it is to ask them for a donation. We want them to know all
the fabulous things that are happening here.”
■
Notre Dame College
gets campaign boost
with $250,000 gift
Notre Dame College in South
Euclid said it received a
$250,000 gift from the Smiley
Family Charitable Foundation of
Solon to bolster the capital cam-
ON THE WEB Story from
www.crainscleveland.com
paign for the college’s Academic
Support Center for Students with
Learning Differences.
The money will be used to help
establish an endowment for the
center and as a lead gift toward
naming the center after the late
Arthur J. Noetzel Jr. and his
daughter, Gretchen Noetzel
Walsh, Notre Dame said in a
news release. The endowment
goal is $1.5 million.
Arthur Noetzel was academic
vice president and dean of the
School of Business at John Carroll University and professor of
business administration. He spent
more than 45 years at John Carroll and was one of seven alumni
who founded the organization that
grew into the Entrepreneurs Association.
In 2005, Notre Dame College
established the Academic Support Center for Students with
Learning Differences with
Gretchen Noetzel Walsh as its director. It provides educational opportunities and creates “pathways
to success for students with
learning differences,” according
to Notre Dame.
Notre Dame says it has 132
Academic Support Center students among more than 1,400
full-time and 2,250 total students.
— Timothy Magaw
20140519-NEWS--18-NAT-CCI-CL_--
5/16/2014
2:03 PM
Page 1
HIGHER EDUCATION
18 CRAIN’S CLEVELAND BUSINESS
MAY 19 - 25, 2014
Collaboration is crucial in health education
Schools are stressing team-based teaching
to better prepare students for future work
By EILEEN BEAL
[email protected]
A
major consequence of the
passage of the Patient Protection and Affordable Care
Act — which mandated teambased care to reduce costs and improve patient outcomes and satisfaction — was the decision by area
colleges and universities to update
health care curriculums to better
prepare students to deliver teambased care.
Updating has meant tweaking
schools’ existing curriculums by
increasing or adding interprofessional activities and skill-building
encounters that force students out
of their specific educational silos.
Medical, nursing, dental, pharmacology, public health and allied
health students are being pushed
out of their comfort zones and into
team-based care situations during
classes or small group case studies, interdisciplinary role-playing
or volunteer stints.
These situations — “where they
aren’t surrounded by students
who are just like them” — are
where students begin identifying
as team members.
They are learning and refining
the skills of how to collaborate,
when to delegate, when to step up,
when to follow and how to communicate concerns, said Holly
Gerzina, executive director for interprofessional educational services at Northeast Ohio Medical
University in Rootstown.
“This is the kind of learning,
where they are breaking down bar-
riers and stereotypes and getting
people communicating in a common language and working with a
common goal and vision … it’s
what’s been happening in corporate retreats for decades,” she
added.
Working together
While the immediate goal of interprofessional education is to ensure that people going into health
care know and understand each
other, the ultimate goal, stressed
Dr. Pamela
Davis, dean of
the School of
Medicine and
senior vice president for medical affairs at
Case Western
Reserve University, “is to enDavis
sure that health
professionals know how to work
together when they are employed
in the real world … where teambased care, ultimately, will be the
norm.”
While the ACA mandated teambased care and, by extrapolation, a
new educational paradigm to fulfill the mandate, interprofessional
education is hardly being shoved
down the throats of administrators
and faculty.
“There’s been a real
groundswell in health education
for it because it’s going to prepare
students for future practice and
provide a practice-ready work
force,” said Meredith Bond, dean
of Cleveland State University’s
College of Sciences and Health
Professions.
Students like it too because for
many, it appeals to their learning
style.
“This generation of students has
a different way of learning. … They
are used to working collaboratively, they are into technology, and
they are gamers, too, so they like
practicing what they have learned
in the classroom and learning by
doing,” said Roberta DePompei,
interim dean of the College of
Health Professions at The University of Akron.
Another reason is that interprofessional education gives students
insights they can never get in a
classroom or lab.
“When you get students from
different professions interacting
and collaborating and communicating you get a better perspective
about your colleagues’ skills and
roles and what they bring to the
table,” said David Lawrence, who
was student director of Case Western Reserve University’s studentrun medical clinic and will begin
his residency in primary care at
Johns Hopkins Hospital in June.
“And,” he added, “what’s really
cool about it (interprofessional education) is that … it’s creating a
well-oiled machine, at such an early career stage, for delivering the
kind of care the ACA mandates.”
Investment in the future
Nothing related to the education of health professionals is
cheap.
However, the cost of designing,
implementing, evaluating and finetuning the curricular and infrastructure changes to ensure inter-
“With the new building, we
bring all the ‘balkanized’
people we have on our
campus and students from
NEOMED together under
one room, and not just for
their ‘formal’ education.”
– Meredith Bond
dean, College of Sciences and
Health Professions, Cleveland State
University
professional education takes root
and flourishes in local schools is
seen as an investment in the future.
Locally, that investment includes everything from major
building campaigns to major curriculum revisions.
Cleveland State University,
which has a nursing school and
several allied health professions
programs and serves as an urban
campus for NEOMED, floated a
$35 million bond issue — with
NEOMED putting up an additional
$10 million — to construct and furnish a building, scheduled to open
next summer, dedicated to health
science education.
“With the new building,” Bond
explained, “we bring all the ‘balkanized’ people we have on our campus and students from NEOMED
together under one roof, and not
just for their ‘formal’ education.
With all that propinquity, we are
anticipating some really lively hallway and lunchtime discussions,
the kind that breed knowledge and
understanding and respect.”
To fund its Interprofessional
Learning Exchange and Development Program, which ensures that
students in the schools of medicine, nursing, dentistry and social
work are bumping up against and
learning from each other “in
meaningful activities where students are learning to work together
right out the gate,” CWRU went after — and got — a $640,000 grant
from the Josiah Macy Jr. Foundation, Davis said.
And CWRU’s new medical education building, being built in conjunction with the Cleveland Clinic,
will include dedicated space for
“bumping” and “learning,” she
added, “because health care teams
are going to be very important for
the improvement of care.”
But, noted the University of
Akron’s DePompei, investment isn’t just about finding funding. It’s
about finding the institutional will
to make the curriculum and infrastructure changes necessary to
best train and educate students.
“That,” she added, “will come as
the national and state accreditation
boards are brought into the ‘circle’
of interprofessional education.” ■
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Page 1
MAY 19 - 25, 2014
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
19
LARGEST MANUFACTURING COMPANIES
RANKED BY FTE LOCAL EMPLOYEES(1)
Company
Address
Rank Phone/Website
Full-time Full-time
equivalent equivalent
local
employees
employees in Ohio
Parent company
Headquarters
Local manufacturing
facilities
Products manufactured locally
Top local executive
Title
1
General Motors Co.
P.O. Box 33170, Detroit 48232-5170
(313) 556-5000/www.gm.com
6,000
8,700
General Motors Co.
Detroit
Lordstown Complex, Parma
Metal Center
Chevrolet Cruze and vehicle parts
Robert Parcell, plant manager,
Lordstown; Al McLaughlin, plant
manager, Parma
2
The Timken Co.
1835 Dueber Ave. SW, Canton 44706
(330) 438-3000/www.timken.com
4,031
4,558
The Timken Co.
Canton
Canton, Niles
Specialty steels and highly engineered
bearings and related products
Richard G. Kyle
president, CEO
3
Swagelok Co.
29500 Solon Road, Solon 44139
(440) 248-4600/www.swagelok.com
4,000
4,000
Swagelok Co.
Solon
Solon, Highland Heights,
Strongsville
Fluid system products, assemblies and
services
Arthur F. Anton
president, CEO
4
Sherwin-Williams Co.
101 W. Prospect Ave., Cleveland 44115
(216) 566-2000/www.sherwin.com
3,533
4,225
Sherwin-Williams Co.
Cleveland
Cleveland, Bedford Heights
Coatings and related products
Christopher M. Connor
chairman, CEO
5
Ford Motor Co.(2)
One American Road, Dearborn 48126
(800) 392-3673/www.ford.com
3,172
6,016
Ford Motor Co.
Detroit
Avon Lake, Brook Park,
Walton Hills
Engines, automotive parts
NA
6
Goodyear Tire & Rubber Co.
200 Innovation Way, Akron 44316
(330) 796-2121/www.goodyear.com
3,000
NA
Goodyear Tire &
Rubber Co.
Akron
Akron
Race tires
Richard J. Kramer
chairman, president, CEO
7
Lincoln Electric Co.
22801 St. Clair Ave., Cleveland 44117
(216) 481-8100/www.lincolnelectric.com
2,800
3,000
Lincoln Electric
Holdings Inc.
Euclid
Euclid, Mentor
Welding and cutting products
Christopher L. Mapes
chairman, president, CEO
8
Parker Hannifin Corp.
6035 Parkland Blvd., Cleveland 44124
(216) 896-3000/www.parker.com
2,275
3,530
Avon, Elyria, Fairlawn,
Parker Hannifin Corp. Akron,
Kent, Mentor, Ravenna,
Cleveland
Strongsville
Valves, hoses, fittings, actuators, filters,
E. Washkewicz
pumps for pneumatic/hydraulic applications, Donald
chairman, president, CEO
components and systems used on aircraft
9
Bridgestone Americas Inc.
10 E. Firestone Blvd, Akron 44317
(330) 379-7000/www.bridgestoneamericas.com
2,181
2,181
Bridgestone
Americas Inc.
Nashville, Tenn.
Akron
Tires
Hank Hara, chief technology officer,
Bridgestone Americas Tire
Operations
10
Babcock & Wilcox Co.
20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203
(330) 753-4511/www.babcock.com
2,100
2,400
The Babcock &
Wilcox Co.
Charlotte, N.C.
Barberton, Copley, Euclid
Forged equipment for the power generation
industry, components for U.S. government
applications
J. Randall Data
president, COO, Babcock & Wilcox
Power Generation Group Inc.
11
ArcelorMittal
3060 Eggers Ave., Cleveland 44105
(216) 429-6000/www.usa.arcelormittal.com
2,082
2,984
ArcelorMittal
Luxembourg
Cleveland, Warren
Steel
Eric Hauge
vice president, general manager,
ArcelorMittal Cleveland
12
The Lubrizol Corp.
29400 Lakeland Boulevard, Wickliffe 44092
(440) 943-4200/www.lubrizol.com
2,068
2,160
Berkshire Hathaway
Inc.
Omaha, Neb.
Avon Lake, Painesville
Performance coatings, engineered
polymers, lubricant additives
James L. Hambrick
chairman, president, CEO
13
Nestle USA
30003 Bainbridge Road, Solon 44139
(440) 349-5757/www.nestleusa.com
1,907
2,422
Nestle S.A.
Vevey, Switzerland
Solon
Hamilton
Stouffer's and Lean Cuisine frozen prepared Jeff
president,
meals
Nestle Prepared Foods Division
LET OUR EXPERIENCE BE AN ASSET TO
YOUR BUSINESS
Contact Chris Felice + [email protected] + 216.363.0100
14
Rockwell Automation Inc.
1 Allen-Bradley Drive, Mayfield Heights 44124
(440) 646-5000/www.rockwellautomation.com
1,892
1,994
Rockwell Automation
Inc.
Twinsburg
Milwaukee
Automation equipment
Frank Kulaszewicz
senior vice president,
architecture and software
15
Republic Steel
2633 Eighth St., NE, Canton 44704
(800) 232-7157/www.republicsteel.com
1,800
1,800
Republic Steel
Canton
Lorain, Canton, Massillon,
Solon
Steel
Jaime Vigil
president, CEO
16
Eaton
1000 Eaton Blvd., Cleveland 44122
(440) 523-5000/www.eaton.com
1,670
3,091
Eaton Corp.
Dublin, Ireland
Brooklyn, Parma, Aurora,
Euclid, Berea
Hose and tubing, fuel pumps for commercial Alexander M. Cutler
aircraft, electrical products
chairman, CEO, president
17
Alcoa
1600 Harvard Ave., Cleveland 44105
(216) 641-3600/www.alcoa.com
1,600
1,625
Alcoa Inc.
New York City
Cuyahoga Heights, Cleveland, Aerospace forgings, commercial vehicle
Barberton
wheel forgings, aluminum billet
18
Luk USA LLC
3401 Old Airport Road, Wooster 44691
(330) 264-4383/www.schaeffler.us
1,364
1,364
Schaeffler Group
Herzogenaurach,
Germany
Wooster
Torque converters, torque converter
clutches, ring gear carriers
Marc McGrath
president
19
Scott Fetzer Co.
28800 Clemens Road, Westlake 44145
(440) 892-3000/www.scottfetzer.com
1,323
1,823
Berkshire Hathaway
Inc.
Omaha, Neb.
Avon Lake, Bedford Heights,
Chagrin Falls, Cleveland,
Westlake, Wooster,
Youngstown
Products for the home, family and industry
Bob McBride
president, CEO
20
Avery Dennison
8080 Norton Parkway, Mentor 44060
(440) 534-6000/www.averydennison.com
1,321
1,717
Avery Dennison
Corp.
Pasadena, Calif.
Painesville, Mentor, Concord,
Fairport Harbor
Pressure-sensitive roll materials for the
labeling, tapes, graphics and reflective
industries.
Donald A. Nolan
president,
Materials Group
21
Shearer's Foods LLC
100 Lincoln Way, Massillon 44646
(330) 834-4300/www.shearers.com
1,081
1,083
Wind Point Partners
Chicago
Brewster, Massillon
Snack foods (potato chips, tortillas)
CJ Fraleigh
CEO
22
Delphi Packard Electrical/Electronic Architecture
5820 Delphi Drive, Troy 48098
(248) 813-2000/www.delphi.com
1,020
1,020
Delphi Automotive
PLC
Troy, Mich.
Warren, Vienna
Wiring harness, cable, connectors
Robert Seilder
director, Global Core Engineering &
E/E Architecture
23
PPG Industries Inc.
One PPG Place, Pittsburgh 15272
(412) 434-3131/www.ppg.com
1,011
1,011
PPG Industries Inc.
Pittsburgh
Cleveland, Strongsville
Automotive coatings
Keith Schneider
plant manager
24
Philips Healthcare
595 Miner Road, Highland Heights 44143
(440) 483-3000/www.philips.com/healthcare
1,002
NA
Philips Healthcare
Andover, Mass.
Highland Heights
Computed Tomography and Molecular
Imaging systems
Gene Saragnese, CEO, general
mgr., Imaging Systems Business
Group, Philips Healthcare; Steve
Lorenc, general mgr., Advanced
Diagnostic Imaging
25
PolyOne Corp.
33587 Walker Road, Avon Lake 44012
(440) 930-1000/www.polyone.com
912
1,172
PolyOne Corp.
Avon Lake
Avon Lake, Massillon,
Norwalk, Berea, Barberton
Specialized polymer materials, services and Robert M. Patterson
solutions
president, CEO
Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are
complete or accurate. We welcome all responses to our lists. Steris Corp. does not report local employee numbers. (1) Employee numbers as of March 31, 2014. This list
includes companies that manufacture products in Northeast Ohio. (2) 2014 local employee and Ohio employee numbers from corporate.ford.com.
Eric Roegner, COO, Alcoa
Investment Castings, Forgings and
Extrusions; president, Alcoa
Defense; Tim Myers, president,
Alcoa Wheel and Transportation
Products
RESEARCHED BY Deborah W. Hillyer
20140519-NEWS--20-NAT-CCI-CL_--
20
5/16/2014
4:22 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
MAY 19 - 25, 2014
Money: QB has had LeBron-like impact on secondary market
continued from PAGE 1
“We obviously drafted someone
who is very popular and has his
own relevancy,” Browns president
Alec Scheiner said. “But our focus is
getting relevant by winning. That
hasn’t changed. We wouldn’t draft
someone to be relevant.”
“It’s one thing to have a superstar,” Scheiner said, “but if you
don’t win, the excitement fades as
well.”
After 15 mostly futile years since
re-entering the NFL in 1999,
Scheiner and the Browns’ top executives are focusing on victories, not
selling Manziel’s likeness.
But, Scheiner acknowledged, if
the Browns win, especially with
Manziel at the helm, “our business
will be fantastic.”
Fewer than four days after the selection of the 2012 Heisman Trophy
winner, it was already evident that
business was pretty darn good
everywhere but on the field.
The 2014 draft coverage on the
Browns’ digital properties — their
website, mobile site and mobile
app — resulted in a 143% increase
in page views when compared to
the weekend of the 2013 draft.
Unique visitors were up 170%, and
video views jumped 259%.
‘Absurd’ sales of No. 2
The Browns’ team shop at
FirstEnergy Stadium has two machines that are used to press letters
and numbers onto custom-made
jerseys. Since May 9, the morning
after the first round of the draft,
that has meant almost all Manziel,
all the time.
Fans can order the Nike jerseys
on the Browns’ online shop, which
is run by Fanatics, a leading online
retailer of officially licensed sports
merchandise. But that would mean
they might not get their Manziel
gear until mid-June or later.
At the Browns’ team shop, which
is managed by New York-based
Legends, workers press Manziel’s
name and number on blank team
jerseys, allowing fans to walk out
with a No. 2 on the spot.
Michael Jordan, general manager of the stadium team shop, said
150 Manziel jerseys were sold until
they ran out of the fabric used to
make the custom numbers. As of
JERSEY: KEVIN KLEPS; T-SHIRT: FRESH BREWED TEES
ABOVE LEFT: Even at $150 each, Johnny Manziel jerseys are a very popular item in the Cleveland Browns’ team shop at FirstEnergy Stadium. ABOVE RIGHT: The
Fresh Brewed T-shirt with Johnny Manziel making the money gesture is expected to become “even more popular” than the first Manziel shirt the Cleveland
company designed.
Tuesday, May 13, the team shop
had a waiting list of 120 fans who
were waiting on their Manziel jerseys to be available.
“And we probably get a dozen
more requests every day,” Jordan
said.
Jordan said he was expecting a
shipment of the fabric very soon,
which would allow the team shop
to satisfy the waiting list.
Asked how many Justin Gilbert
jerseys the team shop had sold
since the Browns selected the cornerback eighth overall, 14 spots
ahead of Manziel, Jordan said
“about a dozen.”
If you’re doing the math, that’s
more than 270 Manziel jerseys sold
at the team shop alone — in fewer
than five days, at $150 apiece.
“This is definitely an absurd
number of jerseys we’re selling
here,” Jordan said.
Fresh Brewed gear
Cleveland-based Fresh Brewed
Tees is one of 21 companies licensed to sell official apparel by the
NFL Players Association.
Owner Tony Mandalone said the
company already is on the second
printing of its orange Manziel T-shirt,
which goes for $25.99. On Wednes-
day, May 14, Mandalone received approval from the NFLPA to print a gray
T-shirt he teased on Twitter after the
draft. The front of the shirt features
Manziel making the money gesture.
On the back is “JOHNNY” with a big
“2” on the back.
“It’s been crazy,” Mandalone
said. “We’re selling a lot of shirts
here. It’s the hottest shirt by far
we’ve seen.”
Mandalone said the gray shirt
“will be even more popular” than
the orange version, which doesn’t
contain Manziel’s money-maker
pose. Two days after tweeting its
configuration of Manziel’s gesture,
Fresh Brewed Tees had received almost 400 retweets, nearly 270 favorites and 600 likes on Instagram.
On Thursday, May 15, GV Art and
Design, a popular Lakewood apparel maker, got into the act by debuting its “Go Johnny Go” T-shirt
on social media.
GV co-owner Greg Vlosich said
he and his brother, George, have
partnered with NFLPA-licensed Pro
Merch. The “Go Johnny Go” shirt is
only available online, but Greg
Vlosich said GV is working on different Manziel designs that will be
available at its Lakewood store.
“We had so much demand (for a
Manziel shirt) and so many people
coming by the store,” Greg Vlosich
said. “We’re going to launch one locally.”
Almost as big as LeBron
Mark Klang, owner of Amazing
Tickets Inc. in Mayfield Village,
sells Browns single-game tickets
from season tickets he has acquired
over the years.
He said from 11 p.m. to midnight
on May 8, he received more traffic
to brownstickets.com than in the
three days that followed the announcement of the Browns’ 2014
schedule.
“I knew it would be really big,” he
said of the Manziel-inspired demand, “but it’s been bigger than I
thought. I would equate it to (the
Cavaliers) getting LeBron (James)
in 2003.”
Scott Merk, owner of Merk’s
Tickets in Brook Park, said he sold
out his supply for the Browns’ first
preseason home game, which is
Aug. 23 against the St. Louis Rams.
“It’s been good,” Merk said of the
Manziel-inspired demand. “Better
than nothing, which is what I’ve
seen the last couple years.”
National secondary-ticket hubs
are experiencing the huge gains
mentioned by Klang.
■ Connor Gregoire of SeatGeek
said the preseason game against
the Rams has outsold any other
2014 game, including the regular
season, since Manziel was selected
by the Browns. At the conclusion of
the draft’s wild weekend, 2,410
Browns-Rams seats had been sold
on SeatGeek. The game with the
second-largest demand, the regular-season opener between the visiting San Francisco 49ers and the
Dallas Cowboys on Sept. 7, had resulted in 1,460 tickets being purchased.
■ Meredith Owen of TicketCity,
a Texas-based reseller, said there
was a 400% increase in the demand
for individual tickets to the Browns’
first three home games in the week
following the selection of Manziel.
The Browns don’t need Manziel
to fill FirstEnergy Stadium.
But Johnny Football mania — in
addition to merchandise and ticket
sales — should be great for bars,
restaurants, parking garages and
other Northeast Ohio businesses.
“I think he could be as big for the
sport in Cleveland as any (NFL)
player is to any team,” said Ungar,
of U/S Sports Advisors.
“I knew he was big,” Amazing
Ticket’s Klang said of Manziel, “but
he’s rock star big.”
■
Trash: Councilman Cummins is among skeptics of proposal
continued from PAGE 5
Not a new idea
City Councilman Brian Cummins, who opposed the last try at a
waste-to-energy plant, is skeptical
of this effort and troubled by a lack
of city council involvement so far.
“Clearly it’s better than what
they did before but it still has some
obvious flaws,” the West Side councilman said. “Everything I’ve
learned about zero-waste processes is, you first look at reducing, recycling and reusing materials.”
This project is triggered by the
mayor’s Sustainable Cleveland
2019 effort, a 10-year plan designed
in 2009 to foster economic growth
with technologies and practices
that limit resource consumption
and improve the environment. The
Jackson administration sees this
plant as a way toward an ultimate
goal of generating zero waste.
“We’ve always been focused on
getting out of (sending trash to) land-
fills, increase recyclables and providing renewable energy for CPP,” Silliman said in an interview the day before the procurement meeting.
Over the last several years the
city sought to build on its own a
$180 million plant that would turn
trash into energy. That effort was
abandoned last year after it ran into
cost and environmental hurdles
and city council opposition. “The
renewable energy was too pricey
for CPP,” Silliman said.
This plan, the city believes, will
make financial sense.
It has, though, a number of risks
since it involves an interlocking
chain of long-term commitments
for commodity products and services — trash disposal, fuel and
electricity — whose prices fluctuate
independently and unpredictably.
It also would mean a 30-year commitment for all parties involved.
“There’s a balancing act here between the price that the successful
company charges for the engi-
neered fuel, which shows up, ultimately, in the price that CPP pays
Cleveland Thermal,” Silliman said.
“That means the engineered-fuel
price charged by the successful
proposer can’t be so high as to drive the CPP power rate up.”
Cleveland Thermal, though, is
confident the plan can work. “It’s
the most sustainable option,” Donald Hoffman, chairman of Cleveland Thermal, said after the meeting. “This will result in a 78%
reduction in emissions for Cleveland Thermal.”
Right time, place
The company is under the gun
from the U.S. Environmental Protection Agency to replace its coalfired power station on Canal Road
in the Flats. Cleveland Thermal is
the successor to companies that
have heated downtown buildings
since 1894. In addition to the Canal
Road plant it operates a water-
chilling operation on Hamilton Avenue to provide summer cooling to
its customers through 20 miles of
insulated, underground pipes.
While the successful bidder
could build its new engineered fuel
plant anywhere in the city, Cleveland is hoping the new company
and Cleveland Thermal will build
their plants on a part of a 60-acre
parcel it calls the Cuyahoga Valley
Industrial Center.
The city won a $5 million Ohio
Job Ready Sites grant in 2008 to
clean up the property along Interstate 77 near the Pershing Avenue
exit, formerly a dumping ground
for steel mill byproducts.
It’s been on the market for several years.
But using the site is not a condition of the bid. However, Hoffman
pointed out that it could be more
cost efficient for the two new plants
to be located together. If not, he
said, Cleveland Thermal could use
its existing Hamilton Avenue prop-
erty or a nearby site for its plant.
Slowing things down
The city is moving quickly on this
proposal process to help Cleveland
Thermal meet its commitments to
environmental agencies, but that
has ruffled feathers in city council,
which will eventually have to give
its approval if the project is to move
forward.
David Beach, director of the
BlueCityGreenLake Institute of the
Cleveland Museum of Natural History, is concerned about the longterm commitment the city would
be making to a particular renewable energy process while the renewables industry is in its infancy.
“My general concern about ideas
like this is, once you create a system
that requires a fuel source, then it’s
hard to reduce your waste through
other means because you’re locked
into this one,” he said. “It makes it
more difficult to change down the
road if better options develop.” ■
20140519-NEWS--21-NAT-CCI-CL_--
5/16/2014
2:00 PM
Page 1
MAY 19 - 25, 2014
Contact:
Phone:
Fax:
E-mail:
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
REAL ESTATE
Denise Donaldson
(216) 522-1383
(216) 694-4264
[email protected]
21
Copy Deadline: Wednesdays @ 2:00 p.m.
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CLASSIFIED
REQUEST FOR PROPOSALS
BUSINESS SERVICES
Request for Proposals
C. W. JENNINGS INDUSTRIAL EXCHANGE
CITY OF OLMSTED FALLS
Global Expansion Consulting
Construction • Acquisitions
Exporting • Financing
The City of Olmsted Falls is seeking proposals for a commercial use,
through a lease agreement, of the city-owned structure located at 7932
Main St. (Jenkins Center) in O.F., OH. The structure, approx. 1,866 sq. ft.,
is located in downtown O.F.’s National Register Historic District and sits
at the entrance of Fortier Park on the edge of Plum Creek. Retail, restaurant, service and/or prof. uses will be considered.
The City’s goal is to utilize the property in a manner which will contribute
to the commercial vitality of the City, expand downtown opportunities,
and enhance the City’s economic base.
An acceptable proposal will then require final negotiations with the City
of O.F. with the intent of entering into a lease agreement for a period of
time to be determined.
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THINKING OF SELLING?
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All proposals must be submitted in accordance with the Request for Proposals (RFP) document. Proposals must be submitted by 4:00 pm on Fri.,
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BUSINESSES FOR SALE
Copies of the RFP Docs can be obtained from:
Hanna Chartwell / Chartwell Auctions
Mac Biggar & Gordon Greene, OH RE Brokers & Auctioneers
COMMERCIAL
PROPERTY
OFFICE
FOR LEASE
CONTRACTOR’S
BUILDING
FOR SALE OR LEASE
LLOYD RD., WICKLIFFE
8210 SF .86 AC
Office...2,890 SF
Garage...2,100 SF
Warehouse ...1,950 SF
Leased...1,290 SF
THE ZELKO CO.
C-216-469-5097
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2040 Sq. Ft. - Remodeled
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Seven Offices/Receptionist
216-870-0944
BUSINESS FOR SALE
OR MERGER/ACQUISITION
Rosann Jones, Dir. of Econ. Dev., City of Olmsted Falls, 26100 Bagley
Rd., O.F., OH 44138, 440-235-5550, [email protected]
Carnegie Body, established 1906. We specialize in repair, maintenance and
painting of large trucks. Looking for like businesses for merger or purchase.
FOR SALE
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Original cost over $125,000.
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Disadvantaged Business Enterprise Public Hearing
Congresswomen Marcia Fudge and Governor John Kasich are joining forces to increase minority
contracting and job opportunities on Ohio Department of Transportation projects in the city of Cleveland.
ODOT invites you to attend a Public Hearing to discuss subdividing the
Disadvantaged Business Enterprise (DBE) goals by ethnic heritage on future
federally funded ODOT construction projects.
When: Wednesday, May 21, 2014, 6-8 p.m.
Where: Cleveland State University Student
Center, 2121 Euclid Avenue, Cleveland
FREE Parking is available in the Student
Center Lot. Enter via E 22nd St. or E 21st St.
Mention the ODOT Public Meeting.
Comments may be submitted to:
Ohio Department of Transportation, District 12
Attn: Amanda McFarland
5500 Transportation Boulevard
*DU¿HOG+HLJKWV2KLR
On the Web:
ZZZWUDQVSRUWDWLRQRKLRJRY'LVW'%(
Email: [email protected]
Fax:
The proposed changes include giving ODOT
the authority to establish DBE sub-goals on
federally funded projects based on ethnicity
to reflect the diverse contracting community
of Greater Cleveland. The purpose of this
hearing is to provide an opportunity for
review and comment on ODOT’s proposed
changes to the DBE goals and for citizens to
provide feedback through written or recorded
verbal comments. Comments received (at
the meeting, by mail, on the web, email or
fax) by 5 p.m. on Monday, June 23, 2014 will
be considered. If you have any questions,
please call 216-584-2007.
This public hearing will be held in an openhouse format with a formal presentation
beginning at 6:30 p.m., immediately followed
by a verbal comment period.
Car Wash
FOR SALE
Located in Lake County,
state of the art full serve
wash, detail bays, 5 self
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busy street, 80,000 cars a
day traffic in north east
Ohio, computerized with
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access to operation and
registers, cash cow
passive ownership,
purchase or lease business
& operations with option
to purchase, possible
owner financing.
Please email inquiries to
[email protected]
Selling a Business?
Ohio Business Brokers Assoc.
WWW.OBBA.ORG
Find hundreds of businesses.
Find a good broker to help.
Buying a Business?
20140519-NEWS--22-NAT-CCI-CL_--
22
5/16/2014
CRAIN’S CLEVELAND BUSINESS
2:06 PM
Page 1
WWW.CRAINSCLEVELAND.COM
MAY 19 - 25, 2014
THEINSIDER
THEWEEK
MAY 12 - 18
The big story: A state appeals court has sided
with a group of small business owners and
sharply rebuked the Ohio Bureau of Workers’
Compensation for the unfair way it set its rates
for more than a decade. The unanimous, threejudge panel largely affirmed a 2012 class-action
decision of Cuyahoga County Common Pleas
Judge Richard McMonagle that 270,000 Ohio
employers are entitled to refunds of hundreds of
millions of dollars in premium overpayments
from the BWC. The trial judge awarded the class
$859 million in damages. The judges returned
the case to the district court for a recalculation
of some of the damages owed. Stuart Garson, an
attorney for the class, said he was satisfied with
the ruling and that the recalculation should be
modest.
New era: Timken Co. of Canton has a new
CEO and is making a change to its corporate
governance as it prepares to spin off its steel
business. Directors of the Canton-based bearings and steel maker named Richard G. Kyle as
president and CEO, effective immediately. The
board also elected John M. Timken Jr. as chairman following the annual meeting of shareholders on Tuesday, May 13. Kyle replaced James W.
Griffith, who became president of Timken in
1999 and CEO in 2002. Timken’s steel business
is being spun off as an independent, publicly
traded entity called TimkenSteel Corp.
New place, familiar name: Saint Luke’s
Foundation in Cleveland named nonprofit veteran Anne Goodman as its new president and
CEO. Goodman, who has been president and
CEO of the Greater Cleveland Food Bank since
1999, will take over at Saint Luke’s Foundation
on Aug. 1. She succeeds Denise San Antonio Zeman, the foundation’s president and CEO since
2000, who last August announced she planned
to leave the job by July 1 to pursue new professional challenges. Goodman will be the foundation’s third CEO since its founding in 1997.
REPORTERS’ NOTEBOOK
BEHIND THE NEWS WITH CRAIN’S WRITERS
A little rain can’t spoil
Joe Biden’s love of trains
■ The May 14 visit to Cleveland by Vice
President Joe Biden was a big success for the
Greater Cleveland Regional Transit Authority. The stopover, part of a weeklong emphasis by Biden and President Barack Obama
on the country’s aging infrastructure, highlighted the transit agency’s multimilliondollar effort to revamp its aging rail system.
Speaking before about 200 civic leaders
and RTA employees at RTA’s East Side Central Rail Maintenance Facility, the vice president prominently mentioned the $17.5 million in federal money that was financing a
new light rail station under construction in
Little Italy. He also mentioned the five rail
cars around the podium that were undergoing makeovers as part of a $40 million project to rehabilitate RTA’s rail fleet.
The only thing dampening the visit was a
steady downpour that
could be heard against
the repair shed’s metal
roof, which also is being
repaired.
That prompted RTA
executive director Joe
Calabrese
Calabrese to comment
to Crain’s Cleveland Business as the vice
president was leaving, “I’m glad the roof
didn’t leak.”
— Jay Miller
Second time’s no charm: The Cleveland
Cavaliers promoted acting general manager
David Griffin to general manager and fired head
coach Mike Brown, whom the team brought
back on April 24, 2013. The Cavaliers, who entered the season with a “playoffs or bust” mentality, were 33-49 in 2013-14. In February, the
Cavs fired GM Chris Grant and made Griffin, formerly the assistant general manager, the acting
GM. Three months later, Griffin was promoted
and one of Grant’s biggest additions, Brown, was
fired.
This and that: Second Harvest Food Bank of
North Central Ohio broke ground on a 40,000square-foot facility — a project expected to increase the Lorain-based food bank’s capacity by
40%. The $5 million facility, which will be located on Baumhart Road just north of the food
bank’s current digs, is expected to open early
next year. … Horseshoe Casino Cleveland said
it will open a 2,000-square-foot virtual gaming
center and lounge, dubbed TAG Bar, later this
year. TAG Bar will be on the casino’s second
floor and will feature more than 35 electronic
table games, including blackjack, roulette and
craps.
Abeona Therapeutics offers
hope in genetic disease fight
■ Cleveland-area small business owners are
glued to their smart phones, and they insist
■ A Cleveland startup called Abeona Therapeutics, created around intellectual property licensed from Nationwide Children’s
Hospital to develop treatments for Sanfilippo Syndrome Types A and B, said it has been
granted “Orphan Drug Designations” by the
U.S. Food and Drug Administration for its
lead investigational therapies.
“The FDA’s approval of our request for or-
WHAT’S NEW
BEST OF THE BLOGS
Small biz owners see apps
as smart time investments
Excerpts from recent blog entries on
CrainsCleveland.com.
Overdraft day
Work to do: The city of Independence plans to
put on a real estate developer’s hat and assume
the role of master developer for 33 acres near
Rockside Road that it plans to buy from Indianapolis-based Duke Realty Corp. In addition to
buying the parcel for about $2.5 million, the city
said it plans to shoulder the cost of readying the
raw land for development by extending Oak Tree
Boulevard north into the site, installing utilities
and doing rough grading of the parcel. It then
would sell sites to businesses for offices or other
uses it deems appropriate.
it’s saving them time and money, according
to a recent survey commissioned by AT&T
and the Small Business & Entrepreneurship
Council.
More than half of Cleveland small business owners surveyed — 56% — reported
saving at least three hours of time per week
by using mobile apps. About 20% of Cleveland small businesses say they’ve saved at
least $500 per month by using apps. Of
those, 70% reported saving $1,000 or more
per month by using mobile apps
Nationally, the survey says each year smart
phones save small businesses 1.24 billion
hours of time and $32.5 billion. Also, 94% of
small businesses use smart phones in their
work, which is up from 85% last year. In
Cleveland, 92% of small businesses said they
use smart phones to conduct business.
Most small businesses across the country
are open, on average, 5.7 days per week —
and nearly half of those surveyed said
they’re using smart phones to work seven
days a week. Almost one-third of small businesses have doubled their use of data on
mobile devices over the last two years.
— Timothy Magaw
COMPANY: Swift Filters Inc.,
Oakwood Village
PRODUCT: SwiftStaticDischarge
filter elements
Swift, which designs and manufactures replacement and custom filter elements for a
variety of industries, says the new SwiftStaticDischarge filter elements use “an advanced
media technology to dissipate triboelectric
charges generated via the flow of fluids
through filter media.”
The unique media ensures “a very low
charge across both media and fluid over long
periods of time to mitigate sparking,” the
company says.
Swift characterized electrostatic discharge (ESD) as “a common problem with
modern ash-free, zinc-free hydraulic and lubricating oils.” Oil passing through hydraulic
or lubricating system filters “can generate
static charges leading to high voltage sparks
from filter media to the filter’s metal support
tube,” according to the company. “These
sparks can lead to oil degradation and varnish, as well as to component damage and
potential explosions.”
The company says the SwiftStaticDischarge elements are “highly suitable for power generation applications (both for gas turbine lubrication systems and conventional
power plant use), plastic injection molding
machines, mobile hydraulics, pulp and paper
and any other application that employs lowconductivity oils.”
■ A May 11 Wall Street Journal story written
from Cleveland showed that customers of
the leading banks with branches inside
Wal-Mart outlets are among America’s
highest payers of bank fees,
including fees on overdrafts that customers
sometimes take out as substitutes for high-interest
“payday” loans.
The story began with this
anecdote:
On a rainy morning in April, Anna Proctor entered a Wal-Mart Supercenter near
some of (Cleveland’s) poorest areas to get
$300 for urgent car repairs — money she didn’t have.
Inside, she joined a line at a Woodforest
National Bank branch and intentionally
overdrew her account. When her paycheck
was deposited 12 days later, she said, the
bank would take the borrowed sum plus a
$30 fee.
“It’s cheaper than a payday loan,” said Ms.
Proctor, a 35-year-old customer-service
worker. If her overdraft and fee were calculated as a loan, the annual percentage-rate
interest, or APR, would be over 300%. She
said she overdraws “all the time.”
The paper noted that while Wal-Mart
Stores Inc. is known as a low-cost retailer,
“customers of some of the independent
banks inside its outlets are among America’s highest payers of bank fees — a large
chunk of which come from overdraft
charges.”
Its analysis of federal filings “found that
the five banks with the most Wal-Mart
branches, including Woodforest, ranked
among the top 10 U.S. banks in fee income
as a percentage of deposits in 2013. Most
banks earn the majority of their income
phan drug designation is an important regulatory milestone for Abeona that supports
our strategy for treating these devastating
diseases,” said Tim Miller, Abeona’s president and CEO, in a statement.
He said the benefits include “seven years
of market exclusivity from product launch in
the United States, tax credits for clinical research costs and waiver of Prescription Drug
User Fee Act filing fees.”
According to the company, Sanfilippo
Syndrome is a “deadly genetic disease resulting from the body’s inability to properly
break down certain sugars.” Symptoms often appear in the first year of life, Abeona
says, and the disease “causes progressive
muscular and cognitive decline in children
after the age of two.”
There is no cure and currently no approved treatments for Sanfilippo Syndrome.
Abeona said it closed seed financing in
late 2013 and now is raising funds to advance its gene therapy-based clinical programs for both Sanfilippo Syndrome type A
and B. Phase I and II clinical trials for both
diseases are anticipated to begin later this
year, the company said.
“We are encouraged by the FDA’s continued recognition of the need for new treatments for rare and orphan diseases like Sanfilippo Syndrome and the designation of
these gene therapies as potential therapeutic options,” said Dr. Kevin Flanigan, professor of pediatrics at Nationwide Children’s
Hospital in Columbus and principal investigator of a Sanfilippo Natural History study
under way at the institution.
Abeona Therapeutics was formed in early 2013. It’s named after the Roman Goddess
who is the protector of children.
— Scott Suttell
through lending. Among the 6,766 banks in
The Journal’s examination, just 15 had fee income higher than loan income — including
the five top banks operating at Wal-Mart.
Follow the money
■ Two Northeast Ohio companies are
among the most Republican-leaning in the
country, based on political donations, according to an analysis by The
New York Times’ new venture, The
Upshot.
The story found that from 1979 to
2014, the political action committees
of 11 companies have given 90% or
more of their political contributions
to GOP candidates, based on an analysis of
Federal Election Commission data.
Among those companies: Eaton Corp.,
which has its North American headquarters
in Beachwood, and Canton-based Timken
Co. Their PACs gave 92.7% and 91.7% to Republican candidates, The Upshot finds.
Also on the list was Cooper Industries,
which Eaton acquired in November 2012.
That company was even more Republican
than Eaton, having given 93.6% of its contributions to the GOP.
In a piece of information that really writes
its own joke, the most Republican-leaning
company in the country is the company that
makes Wonder Bread.
The political action committee of Flowers
Foods, a Georgia company that produces
the sandwich bread, Tastykakes and Nature’s Own baked goods, has given more
than 99% of its political contributions since
1979 to Republicans, according to the story.
Only three Democratic congressional candidates have gotten money from its PAC
since 1984, and not one in the past 20 years.
The top lopsided corporate giver to the
Democrats is Citizens Financial Group’s
PAC, but it has given a relatively more modest 77.5% of its $1 million in contributions
to the party.
20140519-NEWS--23-NAT-CCI-CL_--
5/15/2014
11:21 AM
Page 1
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