NASA looks for launch into auto industry

Transcription

20111017-NEWS--1-NAT-CCI-CL_--
10/14/2011
3:42 PM
Page 1
$2.00/OCTOBER 17 - 23, 2011
JANET CENTURY PHOTOS
Kent State University officials hope the school’s Math Emporium will help combat a 30% to 35% rate of students receiving a “D” or “F” in math
or withdrawing from the university’s remedial algebra courses. Students in the lab use computer software to learn basic math.
NUMBERS
MATTER
AT KSU
Agency to present alternative
uses for space-age technologies
By DAN SHINGLER
[email protected]
University invests $1.2M in
Math Emporium to address
students’ lagging abilities
ABOVE AND BELOW: The lab is staffed at any time of the day with 10 faculty members and
teaching assistants, who are available to answer students’ questions or coach them
through complex problems, as shown here.
By TIMOTHY MAGAW
[email protected]
NASA looks
for launch
into auto
industry
O
n the first day of classes
at Kent State University, a
student looked math instructor
Tracy Laux in the eye and
remarked, “There’s no way out.”
Indeed, no Facebook, no sleeping
through a professor’s lecture and, basically, no way to coast through the university’s remedial math courses without putting the time and effort into
actually learning the material.
Seated in front of the available 247
computers in a sprawling, 11,154square-foot space on the second floor
of the university’s library, students are
tasked with using computer software to
learn basic mathematics. Forget the
Building cars isn’t rocket science. But with all the
challenges facing the automotive industry, could a little
rocket science hurt?
That’s how NASA sees it, at least, which is why it’s
pitching 38 space-age technologies to automakers and
their suppliers at an event at NASA Glenn Research
Center on Oct. 27.
“What we’re doing is
showing them newer tech“NASA is open for
nologies — things that didn’t
business. We’re
exist or weren’t even
dreamed of 10 years ago,”
opening our safe,
said NASA technologist
so to speak.”
Paul Bartolotta, a material
– Paul Bartolotta,
science expert and the
material science expert,
agency’s point person for
NASA Glenn Research
the event.
Center
So far, Dr. Bartolotta
said more than 100 companies have signed up to attend, including the Big 3
domestic automakers as well as Toyota, Honda and a
slew of Tier One and Tier Two suppliers from around the
country.
What they’ll see are technologies specifically chosen by
NASA and auto industry focus groups for their potential
in the automotive industry. Each one will be presented
in trade-show style by NASA’s own scientists and
researchers, who will answer any questions that attendees might have.
See NASA Page 35
See MATH Page 37
INSIDE
Think bigger
Solon-based miniature electronics
maker Valtronic USA Inc. is looking
for larger digs to accommodate
the growing demand for its products.
The company hopes to be in a
larger facility by mid-2012.
Read more about Valtronic’s
plans on Page 8.
Issue 2 groups hope ads trigger emotion, voter action
SB 5 campaigns aim to
bolster numbers at polls
By JAY MILLER
[email protected]
42
Building a Better Ohio, the group
and repeal Senate Bill 5.
SB 5 is the legislation passed earlier this year that takes away the
right to strike and sharply curtails
the collective bargaining rights of
public employees.
That both sides could use the
same video to support opposing
sides of an election issue demon-
strates to campaign watchers how
little the two sides are helping voters
still undecided about Issue 2.
“I think the ads have been even
more uninformed than they typically are,” said Paul Beck, a political
science professor at Ohio State
University who studies political
See ISSUE 2 Page 37
6
SPECIAL SECTION
NEWSPAPER
74470 01032
0
mounting the television ad campaign
to support the passage of state Issue
2, created a media firestorm last
week when it was discovered using
video — showing a young child
being rescued from a burning
building — that was lifted from a
We Are Ohio ad, a spot created to
persuade voters to reject Issue 2
Crain’s honors Northeast
Ohio’s leading financial
officers for their outstanding fiscal leadership
and asset management
■ Page C-1
Entire contents © 2011
by Crain Communications Inc.
Vol. 32, No. 42
2
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3:17 PM
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
THAT BELT’S GETTING AWFULLY TIGHT
COMING NEXT WEEK
U.S. consumers’ spending levels fell in four of five key areas from 2008 to
2010, a clear sign of the toll the recession has taken on household budgets.
The U.S. Bureau of Labor Statistics reports that among the five categories,
spending rose only for health care — a category in which prices never go down
and far outpace inflation, as well as consumers’ take-home pay. Here’s how
spending shaped up in the five categories:
Out-of-the-box benefits
We look at some of the nontraditional
benefits Northeast Ohio companies
offer as a way to reward employees
and stay competitive. From concierge
services to employee discounts, some
firms go beyond the basic health
insurance offerings.
Consumer spending patterns, 2008-2010
Average annual consumer expenditures for selected components
REGULAR FEATURES
Big Issue .....................11
Bright Spots ................18
Classified ....................38
Editorial ......................10
Going Places ...............14
OCTOBER 17 - 23, 2011
List: Colleges and
universities ...............34
Personal View..............10
Reporters’ Notebook....39
Tax Liens.....................15
Component
2010
2009
2008 % change
Mortgage interest/charges
$3,351
$3,594
$3,826
-12.4%
Health care
3,157
3,126
2,976
6.1
Food away from home
2,505
2,619
2,698
-7.2
Gas and motor oil
2,132
1,986
2,715
-21.5
Donations
1,633
1,723
1,737
-5.9
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV
July 2011
June 2011
May 2011
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Page 1
OCTOBER 17 - 23, 2011
3
Grant boosts local charter school operator
Breakthrough will use federal money to open three new sites
By TIMOTHY MAGAW
[email protected]
its footprint across Cleveland.
The U.S. Department of Education divvied a pot of $25 million to
nine charter management organizations across the country. Breakthrough, which is headquartered in
Cleveland, received the secondlargest amount doled out and was
The federal government will inject
about $3.4 million over the next two
years into the coffers of Breakthrough
Schools, a local charter management
organization, as it continues to expand
the only recipient in Ohio. The
latest grant announcement is part
of a $250 million investment this
year by the Obama administration
in charter schools.
The funds will support the opening
of three new Breakthrough schools
next year in the city — one at East
125th Street and Woodside
Avenue in the old Captain
Arthur Roth School building
and two more in the former
Woodland Hills Elementary
School at East 93rd Street and
Union Avenue.
The money also will support the expansion of more Rosskamm
grade offerings for three of
the network’s six existing schools —
Athersys’
fundraising
harder after
stock drop
– Wes Wilcox, general manager, Canton NBA Development
League team owned by the Cleveland Cavaliers
A (LONG)
SHOT AT
THE PROS
Issuance of new shares
not likely unless price
recovers from 43% dip
In D-League tryout, Crain’s
staffer finds out what it’s like
to take a step up in competition
By CHUCK SODER
[email protected]
By JOEL HAMMOND
[email protected]
D
See TRYOUT Page 12
MARC GOLUB
TALE OF THE TAPE
Title: Assistant editor
Age: 29
Height: 5-10
Weight: 140
Résumé: Played a year of JV ball at
Austintown Fitch High School, near
Youngstown. … Accomplished high school
cross country runner. … Youth basketball
coach in Cleveland’s west suburbs.
Crain’s assistant
editor Joel Hammond
finishes a fast break
with a layup at a tryout for the Cavaliers’
NBA Development
League team.
THE WEEK IN QUOTES
“I think it’s a different
NASA than we’ve seen
in the past — more
open and wanting to
share their technologies with the industrial community.”
— Ed Nolan, vice president of
product development and engineering, Magnet. Page One
See BOOST Page 35
INSIGHT
“(He) looked like a basketball player.”
rive by my family’s old house in
Austintown, Ohio, and the same
basketball hoop my dad put up
in the ’80s improbably still stands
— weather-beaten, but erect nonetheless.
We moved out of that house in 1999,
but the memories linger. On that hoop, I
was Mark Price, the Cavaliers dead-eye
point guard from the glory days of the late
’80s and early ’90s. I was going to play in
the NBA, and I was going to find a way to
stop the next Michael Jordan from making the next Shot over the next Craig Ehlo.
Fast forward 20-some years, and I never made it to the NBA. Heck, I never made
it to the high school varsity team.
But a guy can dream, right? So when
the Cavaliers announced they would hold
open tryouts for their new NBA Development League franchise, which calls Canton
home, my interest was plenty piqued.
“I should try out,” I shouted at my boss,
“and write about it.”
And so there I was at 7:30 a.m. on Oct.
8 at Saint Ignatius High School in Cleveland’s Ohio City neighborhood, one of 28
guys vying for a spot at NBADL training
camp in November — but probably only
one of a few wondering just what the heck
I’d gotten myself into.
Citizens Leadership Academy, Near West Intergenerational School and Village
Prep. Breakthrough opened
three other schools this fall.
“The grant is certainly
very significant,” said
Breakthrough CEO Alan
Rosskamm. “The fact that
we did so well in a public
“It’s big, it’s bold, it’s
innovative. This is
the kind of thing
other universities in
Ohio might want to
do.”
“We have a lot of
companies interested
in this type of space.
We’re excited to have
more product on
line.”
— Lester Lefton, president,
Kent State University. Page One
— Tracey Nichols, economic
development director, city of
Cleveland. Page 9
“No job is too small
for Duke, either. He’ll
grab a broom and
sweep up after an
event without being
asked. ... He’s a true
team player.”
— CFO of the Year nomination
for Richard “Duke” Jankura,
JumpStart Inc. Page C-8
Lauren Migliore can’t name one
good reason why Athersys Inc.’s
stock price has fallen 43% since Aug. 1.
Regardless, the true value of the
Cleveland company fell with it, to
some degree, said Ms. Migliore, an
equity analyst for Morningstar Inc.
in Chicago.
That’s because Athersys, unlike
many companies, likely will have to
raise more money at some point
over the next year or so. Considering
Athersys’ current share price —
$1.54 when markets closed on
Thursday, Oct. 13 — it now would
have to sell off a much bigger piece
of itself to generate the same
amount of money as when its shares
were selling at $2.72 on Aug. 1.
There are other tactics Athersys
can take to raise money, Ms. Migliore
said, but any route involving the
public market will be harder to take
unless the company’s stock price
goes up.
The stock is a better buy now that
the price is lower, but the company
certainly isn’t better off for it, she
said, noting how she revised her estimate of the company’s true value
to $3 per share from $4 after the
stock began to slide in early August.
“The price that the firm’s trading
at is directly related to the value of
the company,” said Ms. Migliore,
one of several Athersys watchers
who see promise in its MultiStem
technology, an adult stem cell therapy that is being tested on patients
who have suffered from heart attacks, strokes and other conditions.
Athersys officials noted that raising
a significant amount of money by
issuing new shares would not be an
attractive option at the current share
price, given how dilutive it would be
to existing shareholders.
The company, however, could
avoid the public market entirely by
raising money through deals with
strategic partners, said Athersys CEO
Gil Van Bokkelen.
See ATHERSYS Page 36
4
10/14/2011
4:00 PM
Page 1
OCTOBER 17 - 23, 2011
Gilbert’s Bizdom U protégés
set to work on new startups
By CHUCK SODER
[email protected]
We Buy Luxury Timepieces and
Large Diamonds for CASH!
11 Locations Serving the Cleveland Area
Dan Gilbert is out to find the next
Dan Gilbert.
This week, the first group of
Cleveland-area entrepreneurs to
enter Mr. Gilbert’s Bizdom U program will start trying to turn their
ideas into businesses.
The five-month long entrepreneurial boot camp is designed
to spur the creation of innovative
businesses in Cleveland. Mr.
Gilbert, who owns the Cleveland
Cavaliers and several other businesses, started the program four
years ago in Detroit, his hometown.
The 30 entrepreneurs entering
Bizdom U Cleveland were accepted
from a pool of 350 applicants and
represent people of various ages,
races and education levels, said
Andradia Scovil, recruiting leader
for Bizdom’s Cleveland program.
They have two things in common:
They all have ideas for businesses
that can be brought to scale, often
with the help of information technology, and they have the passion to
make it happen, Ms. Scovil said.
“They have the results-driven attitude that we’re looking for,” she said.
Bizdom U Cleveland is almost
identical to its counterpart in
Detroit. During the “Idea Generator”
phase of the program, entrepreneurs will spend three nights a
week hashing out their business
plans with experienced entrepreneurs and gauging consumer interest
in their ideas. They’ll work out of
the Quicken Loans call center on
West Third Street.
Then participants will pitch their
ideas to Bizdom U officials, who
will select some of them to participate in the Launch Labs phase of
the program, during which they will
work full time on their businesses
for three months.
Those selected will receive
$10,000 and $4,500 for each of the
company’s founders. In exchange,
Bizdom U receives an 8% stake in
the business, which is meant to
help sustain the nonprofit program.
Companies would be required to
stay in the city at least until they
receive money from other investors.
The entrepreneurs will be guided
by Paul Allen, who has helped start
or lead several information technology companies over the past 20
years. He also spent six months
leading the Shaker LaunchHouse
incubator in Shaker Heights.
Mr. Allen said he wanted to join
Bizdom U partly because the nonprofit uses the “agile” approach to
developing startups, which focuses
less on planning and more on getting a product to market quickly.
Plus, he also likes that Bizdom
focuses on businesses at the idea
stage.
“That’s where, on a regional
basis, we really need to focus,” said
Mr. Allen, who spent eight years
living in Silicon Valley.
Over the past two years — after
Bizdom U evolved into its current
form — graduates of the Detroit
program have launched 11 businesses that remain active, employing
the founders and occasionally other
employees. Among the businesses
are Launch Learning Group, which
aims to help people who want to sell
insurance pass state exams; Krysalis
Fit, which sells fitness products by
hosting parties at people’s homes;
and Pickett Report, which provides
an online tool that gives people
looking to move information on not
only the amenities in a neighborhood but the lifestyles of the people
who live there.
Bizdom U has raised funding
from Mr. Gilbert, the Ewing Marion
Kauffman Foundation of Kansas
City and the New Economy Initiative for Southeast Michigan. It also
aims to raise money from organizations in Northeast Ohio.
■
Duke Realty continues NE Ohio market exit
By STAN BULLARD
[email protected]
www.650GOLD.com
Licensed, Bonded and Insured
6 tips
An investment group associated
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with Pittsburgh-based financial investing firm Private Wealth Advisors
Inc. and its PWA Real Estate affiliate
is the new owner of the Great
Northern Corporate Center I, II and
III office buildings in North Olmsted.
The sale last week of the 273,379square-foot complex for $26.7
million by Indianapolis-based Duke
Realty Corp. resumes Duke’s long
drive to exit the region.
The real estate investment trust
began shedding Northeast Ohio
properties in 2005 in a quest to
invest in stronger economies with
higher rents. The effort stalled as
realty financing dried up in 2008
with the credit crunch and worsened during the recession.
The new owner of the complex
of three ivory-colored four-storybuildings in North Olmsted is PWA
Great Northern Corporate Center
LP, a partnership formed by PWA
Real Estate LLC.
The lookalike, interconnected
buildings at 24950 Country Club
Boulevard have a 10% vacancy rate,
PWA said of the only Northeast
Ohio property that its website
shows in its portfolio. The office
complex adjoins Interstate 480, is
virtually across the street from
Westfield Great Northern mall and
is surrounded by restaurants, hotels
and office-warehouse properties.
Both PWA Real Estate and Private
Wealth Advisors share the same
Pittsburgh address, according to
Cuyahoga County land records.
PWA Real Estate’s website says it
holds an apartment complex in
Athens, Ga., and five contemporary
office buildings — four in Pennsylvania and one in Indianapolis.
The sale is a sign that lending is
more available for prime commercial realty transactions, though not
necessarily from bank lenders.
PWA Great Northern acquired
the North Olmsted complex with a
$20 million loan from Archetype
Mortgage Funding I LLC, a Miami
Beach-based lender that provides
securitized mortgage loans for commercial investors.
Archetype is part of the Miamibased LNR Partners financial concern that also buys commercial
properties and serves as a special
servicer for distressed properties
held by banks.
Duke acquired two buildings at
Great Northern Corporate Center in
1998, soon after it entered the Northeast Ohio market. Duke continues to
own 10 office buildings in the Rockside Road office market in Independence and Seven Hills. Duke shed its
nine east suburban office buildings
and multiple industrial buildings
and land before the bottom fell out
of the commercial realty market.
A PWA Real Estate spokesman did
not return a call. David Browning,
managing director of CBRE Inc.’s
Cleveland office, which handled the
sale, said it is a good sign that the
area is attracting interest of outside
local groups.
■
2007 - 2010
The Delta Promise.
Customization. Proactive Performance. Collaboration
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Volume 32, Number 42 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July,
the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland,
OH 44113-1230. Copyright © 2011 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio,
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REPRINT INFORMATION: 800-290-5460 Ext. 136
10/14/2011
3:17 PM
Page 1
OCTOBER 17 - 23, 2011
5
Madoff case work pumps up Baker Hostetler’s New York office
Law firm now plans
for life after famed,
shamed Ponzi schemer
By AMANDA FUNG
Crain’s New York Business
NEW YORK — A recent ruling by a
federal judge ultimately may slash $5
billion off the amount of money that
Bernie Madoff trustee Irving Picard
can claw back for the mega-fraudster’s victims. The decision was a
major setback for Mr. Madoff’s erstwhile clients and Mr. Picard’s cases
going forward — but don’t worry about
his firm, Cleveland-based Baker
Hostetler.
Nearly three years after Mr.
Madoff was arrested, one clear winner
in the biggest Ponzi scheme in history
is the New York office of Baker
Hostetler, which has ballooned from
68 lawyers when the case began to
165 today while the firm has taken in
$179 million in Madoff-related fees.
At the end of last month, it put in for
another $44 million in fees for the
four months of work ended May 31.
“The opportunity to take a lead
role in the Madoff matter is extraordinary for a law firm,” said John
Niehoff, a partner at Baker Tilly
Virchow Krause, an accounting and
consulting firm for the legal industry.
The case has transformed Baker
Hostetler. But the firm’s attorneys
will need to plan carefully to make
the transition after the inevitable
end of the record-setting legal windfall. The firm’s partners say they’re
well aware of the dangers and are
determined to skirt them. They note
that their big case has yielded not only
cash, but also invaluable experience
and exposure that they already are
building upon.
“This is the largest and most complex case any firm has ever handled,”
said George Stamboulidis, managing
partner of Baker Hostetler’s New
York office.
Steering the growth of the staff has
been an intense learning experience,
as the firm’s leadership has tried to
stay ahead of the mounting demands for space, staff and computing power.
Most of the firm’s Madoff-related
work is done out of the New York
office, located at 45 Rockefeller Center.
Since moving there in 2007, the firm
has grown so fast that the office’s
sole conference room, up on the
ninth floor, often is booked up days
in advance.
To ease the crunch, the firm will
take another 44,000 square feet in
the building, spread over five floors,
in 2012. That will bring its total footprint at the property to roughly
166,000 square feet.
The new space will allow the office
to accommodate 190 lawyers. It’s
hard to believe that when it opened
just over a decade ago, there were
only three lawyers in sublet space at
666 Fifth Ave.
The growth is mirrored in the
95-year-old firm’s gross revenues,
which totaled $386 million last year.
That figure was up 17% from the
year-earlier level — representing the
third-highest gain logged by any of
the nation’s 100 largest law firms,
according to The American Lawyer.
That’s some paper trail
Arguably, Baker Hostetler’s biggest
advances have grown out of its need
to manage a case that involves investigations in 20 countries and more
than 1,000 lawsuits against
funds that fed money to Mr.
Madoff as well as to banks
and other parties, including
New York Mets owner Fred
Wilpon.
To date, the case has
generated enough paper to
extend for more than 5,000 Picard
miles if all the sheets were
lined up; if all the electronic data
were printed out, it would fill in
excess of 5 million four-drawer filing
cabinets. Hundreds of attorneys in
the firm must be able to manage,
track and share all the information.
To allow for that, Baker Hostetler
has built its own state-of-the-art
computer system, which will far
outlast the Madoff case.
“The case has given us
strength in other practice
areas,” said David Sheehan,
chief counsel to the Madoff
trustee and a Baker
Hostetler partner. “When
the case winds down, we will
use the proprietary platform we built for Madoff
clients to support and
service other clients.”
The firm is not wasting any time.
In June, Baker Hostetler created an
e-discovery and technology team in
New York to use its expertise and its
system for other cases.
Several outside observers approve
of its strategy.
“So far, the firm has executed
well in investing the extraordinary
amount of income generated by
Madoff in other areas of the firm,”
said Peter Zeughauser, founder of
law consultancy Zeughauser Group,
which has done work for Baker
Hostetler.
The firm has had a hand in lots of
other prominent cases predating
Madoff. It successfully pushed the
U.S. Polo Association’s case of trademark infringement against designer
Ralph Lauren. In the Enron case,
Baker was tapped by the U.S. Department of Justice to monitor Merrill
Lynch’s corporate compliance activity. Separately, the firm was charged
with monitoring Bank of New York.
But, there are cases and then there
are cases of the magnitude of the
Madoff debacle, with the amount of
intensive labor it requires.
“It’s highly unlikely that they will
be able to replace the work immediately once the Madoff case ends,”
said Mr. Niehoff of Baker Tilly.
That’s where Baker Hostetler
partners say that another big plus
associated with their monster case
comes into play: It has put a relatively unknown law firm on the map.
Two years ago, Mr. Picard himself told The Wall Street Journal that
the case is “something that will be
good for the firm’s reputation.”
His partners maintain it has enhanced their ability to attract clients
and lawyers. Most recently, Baker
Hostetler hired a new partner in its
intellectual property practice and
made offers to two other lawyers. ■
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6
10/14/2011
4:01 PM
Page 1
OCTOBER 17 - 23, 2011
Software outfit eyes regional move
Solon property
provides room for
anticipated growth
By STAN BULLARD
[email protected]
MRI Software, which provides
realty data tracking software for
property companies and corporations,
is focusing on a building in Solon as
a potential new headquarters.
MRI has received a jobs incentive
grant from the city of Solon if it
moves its 230 employees to 28925
Fountain Parkway from its current
offices at One Harvard Crossing in
Highland Hills.
David Post, CEO of MRI, said the
company is close to signing a 10-year
lease for a new global headquarters
operation and expects to do so “on
an imminent basis.”
Mr. Post said MRI searched more
than 30 buildings and ruled out the
idea of moving out of state before
settling on the former Agilysys Corp.
headquarters in Solon. Agilysys earlier this year moved its headquarters
to Atlanta and sold a remaining division here to OnX Enterprise Solu-
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15899
tions of Toronto, which moved the
operation to Bedford Heights.
“The additional space accommodates some of the growth we anticipate in our three-year plan and
allows for rapid expansion in the
space,” Mr. Post said. “When
Agilysys renovated the building in
2007, it made it a class A property.
They installed the infrastructure
that suits a technology firm such as
MRI. Finally, it’s about talent. To
attract talent you have to offer fair
compensation and a good, pleasant
working environment.”
Moreover, he said, the new office
would be on a single floor that
would facilitate communication
among different working groups
and create a “healthier culture.”
Abigail Plumb-Larrick, MRI’s
global marketing officer, said the company wants to secure more space for
future growth, both through acquisitions and increased sales. The
100,000-square-foot office in Solon
would double the amount of space
MRI has in Highland Hills and
would accommodate growth to more
than 300 employees in the next four
years, Ms. Plumb-Larrick said.
“It’s fantastic space,” Ms. PlumbLarrick said of the former Agilysys
space. “It provides flexibility and
Solon provides a lot of amenities for
employees while being close to
where we are.”
MRI will receive state and local
incentives to help defray its costs for
moving to Solon and staying in Ohio.
As MRI considered an out-ofstate headquarters — Mr. Post
declined to say what non-Ohio
locations it eyed — the Ohio Tax
Credit Authority approved a 60%
credit for state income taxes over an
eight-year period. The credit covers
the current $13.8 million payroll
when the company moves to the
new location and the projected
$21.5 million in additional payroll it
expects to add in the future.
Greg Woods, an Ohio Department of Development spokesman,
said MRI agreed to stay in Ohio for
at least 11 years and set a goal of
hiring 10% of the additional payroll
with people who meet minority or
disadvantaged criteria.
MRI also received a job creation
tax credit from the city of Solon
which will equal half the municipal
income taxes paid by the company
and its employees for the next 10
years. That means the city will issue
MRI a check ranging from $150,000
to $250,000 annually depending on
the size its payroll reaches the prior
year, for a decade, according to Peggy
Weil Dorfman, Solon economic
development manager.
It’s worth it, according to Ms.
Dorfman.
“This is a wonderful project,” she
said. “We’re pleased they found
what they needed in Solon.” MRI
taking the former Agilysys office will
fill the second-largest industrial
vacancy in the suburb, she said.
The likely gain for Solon and the
Solon-based investor group JPS
Properties that owns the Fountain
Parkway property comes at the
expense of Highland Hills and One
Harvard Crossing, an office building
where MRI has occupied nearly
50,000 square feet since 2005.
Donald King, managing director
of the Gotham King Fee investor
group that owns One Harvard, said
he hopes to retain MRI, but if it
vacates there is at least one other
group that may be in the market for
the space. Neither Mr. King nor Mr.
Post would disclose specific rents.
Mr. Post said part of MRI’s desire
to move is cultural. The firm occupied the One Harvard space when
it was owned by Intuit Real Estate
Solutions, but it now is an independent company.
“By changing buildings and our
space, we’re trying to redefine the
company’s culture by separating us
from our old surroundings,” Mr.
Post said.
MRI, which produces and maintains software that real estate companies can use to track tenant data
and operations and corporations
can use to track their properties,
was sold to Vista Equity Partners of
San Francisco in 2010 by Mountain
View, Calif.-based Intuit.
Some of MRI’s growth will come
from acquisitions. Earlier this month,
it acquired Bostonpost Technology
of Bedford, N.H., which sells a webbased software serving owners of affordable housing programs.
■
Signet enters joint venture to develop
proton therapy center in San Diego
Signet DevelopAdvanced PartiON THE WEB Story from
ment, part of Signet
cle Therapy for
www.CrainsCleveland.com. this landmark
Enterprises LLC in
Akron, said it has closed a $165
project,” said Tony Manna, chairman
million debt facility with Advanced
of Signet Enterprises, in a stateParticle Therapy LLC to construct
ment. “This transaction represents
the Scripps Proton Therapy Center
the largest single source debt facility
in San Diego.
of any U.S. proton therapy center
The project, when completed,
and marks a major milestone in our
“will represent the newest and most
inaugural project with APT.”
technologically advanced facility in
Proton therapy is an advanced
the treatment of tumor based
form of radiation therapy that uses
cancers,” Signet Development said
accelerated protons extracted from
in a news release. The 103,500hydrogen atoms to precisely treat
square-foot treatment and research
cancerous tumors throughout the
center will be one of just nine such
body.
centers offering the proton therapy
Through the joint venture with
technology in the United States and
Advanced Particle Therapy, Signet
will treat up to 2,000 patients annuDevelopment said it will “continue to
ally, the company said.
provide development services for
Signet Development is Advanced
and be equity owners in future proParticle Therapy’s joint venture partton therapy centers, including the
ner in the development and will be
Maryland Proton Treatment Center.”
an equity partner in the center upon
That center is scheduled to break
its completion.
ground by the end of this year,
“We are honored to partner with
Signet Development said.
10/14/2011
4:46 PM
Page 1
8
10/14/2011
3:18 PM
Page 1
OCTOBER 17 - 23, 2011
Space needs no small worry
for Solon electronics maker
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By CHUCK SODER
[email protected]
Even companies that make really
small stuff sometimes need more
space.
Valtronic USA Inc. likely will buy
a much bigger plant in Northeast
Ohio in time to have it up and running by mid-2012, said president
and CEO Jim Wimer.
Given its growth, the maker of
miniature electronics will need a
building at least twice the size of its
26,000-square-foot plant in Solon,
Mr. Wimer said.
“I’ve got to find some space, and
quickly,” he said.
Since the start of the year, Valtronic has added 32 people to its
staff. Now the company employs 94
and is out of space, said Mr. Wimer,
noting that Valtronic is working
with NAI Daus of Beachwood to
find an adequate plant.
The lack of space already is limiting
production: To keep up with growing
demand, the company recently
bought four used “pick and place”
machines, which put tiny electronic
components on printed circuit boards.
Two of them, however, are sitting
idle in the company’s plant at 6168
Cochran Road. The company doesn’t
have adequate space to use them, and
it would need to have a new transformer attached to the building
before turning on more machines.
“I’m out of space, and I’m out of
power,” he said.
Sales at Valtronic — which makes
electronic parts for medical devices,
industrial machines and other
products — are up by 30% this year
over 2010, Mr. Wimer said. Last
year’s sales beat 2009’s by about
20%, he added.
One factor driving recent growth
is Valtronic’s push to sell finished
printed circuit boards along with the
packaging that houses them. The
effort, which began a few years ago,
is helping Valtronic attract customers
who would rather contract out such
assembly work, Mr. Wimer said.
Another factor is that Valtronic’s
customers have been moving ahead
with research and development
projects that they had postponed
because of the recession, he said.
That means more new products for
Valtronic to help design and produce.
Valtronic had considered adding
another 25,000 square feet to its
Solon plant. The addition, however,
would cost an estimated $5.5 million, while the company expects to
be able to buy and outfit a larger
plant for roughly half that amount,
Mr. Wimer said. Moving also would
speed up the expansion process by
at least a few months, he said.
The city of Solon has discussed
offering Valtronic a job creation
grant if it stays within the city, but it
likely wouldn’t be big enough to
sway the company’s decision, Mr.
Wimer said.
■
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10/13/2011
4:01 PM
Page 1
OCTOBER 17 - 23, 2011
9
Acquisition caps PolyOne’s specialty business foray
By ANGIE DeROSA
Plastics News
Observers laud the vision of Avon Lake manufacturer’s CEO
PolyOne Corp.’s acquisition of
ColorMatrix Group Inc. marries a
major masterbatch house with a
globally dominant player in liquid
colorants, a formidable union as
consumer products groups seek
one-stop-shop suppliers for their
packaging needs.
The $486 million purchase,
announced Oct. 3 by Avon Lakebased PolyOne, means that more
than 50% of its operating income will
be derived from specialty chemicals
compared with 2% in 2005, PolyOne
chairman, president and CEO Stephen
Newlin said.
Experts are not unhappy
with the purchase price,
which represents a valuation of 11 times earnings
before interest, taxes, depreciation and amortization (EBITDA). Two sources
agreed that it’s not about Newlin
the purchase price, but
rather the return on investment. ColorMatrix is expected to provide
about 15% return on investment
annually.
“This is a great move and I do not
have any problems at all
with price they paid,” said
Bill Ridenour, owner of
Polymer Transaction Advisors Inc. in Newbury, Ohio.
“Even if it grows modestly,
it will grow out of that
purchase price. Even at
10% growth in earnings
per year, it will be a wonderful acquisition for them. This is a
deal that they should be making. It
could have made sense for any of
the major masterbatch houses.”
PolyOne officials declined further
comment until its Oct. 26 conference call when it will announce
third quarter operating results.
The deal caps off an aggressive
strategy to beef up PolyOne’s
specialty business. The force behind
the strategy is Mr. Newlin, who has
been PolyOne’s top executive since
2006. Prior to that, he served as
president of the industrial sector of
Ecolab Inc. His career also included
executive positions with Nalco
Chemical Co., during which time he
served as president of both Nalco
Europe and Nalco Pacific.
He has a reputation as a very
position in injection molding and
pipe extrusion. Through the 1990s, it
grew its European business. ColorMatrix set up a joint venture in the
United Kingdom to establish that
European base. By the time it was
acquired by Audax Group in 2006, it
had footholds in Hong Kong and
Brazil. Audax acquired ColorMatrix
at a valuation of 9.6 times EBITDA.
After Audax purchased it, ColorMatrix acquired DosiColor in Latin
America, and fluoropolymer firm
Colorant Chromatics Group, which
added to its growth in Europe. In 2009,
it opened its commercial facility in
Moscow.
In terms of technology, ColorMatrix
is at the forefront, sources said. Now
it has in its portfolio HyGuard Oxygen
Scavenging System, an oxygen scavenger additive. ColorMatrix boasts it
as game-changing, engineered to
enable fully recyclable, fully protective PET packaging for oxygen sensitive beverages and food. It offers that
product to the likes of beer makers
Baltika and Heineken, along with
soft drink companies such as PepsiCo and Coca-Cola Co.
■
good operator, one source said. Mr.
Newlin has been “ruthless in pursuit
of that strategy but he’s been successful,” Mr. Ridenour said. “The
fact that the stock price dropped
25% didn’t stop Newlin at all. I give
him a lot of credit.”
Dmitry Silversteyn of Longbow
Research LLC in Independence,
said that Mr. Newlin deserves the
benefit of the doubt.
“PolyOne hasn’t done anything
in last few years to make me feel
they are irresponsible,” Mr. Silversteyn said. “Goals that he put out in
2007 looked so out of reach and so
fantastic, I don’t think people took
him seriously.”
PolyOne has already reached
those goals.
“Clearly, he’s a detailed and strategic thinker,” Mr. Silversteyn said.
ColorMatrix is dominating the
world in liquid colorants, Mr. Ridenour said, and has unparalleled
technical prowess and great depth
of technology and technical staff.
ColorMatrix began in Cleveland
in 1978, building its expertise in
liquid colorant dispersion, according
to its website. It established its
Angie DeRosa is a correspondent
with Plastics News, a sister publication of Crain’s Cleveland Business.
FILE PHOTO/RUGGERO FATICA
Tyler Village, located in the St. Clair-Superior neighborhood, is composed of
more than a dozen industrial-age buildings.
20
200
Developer plans $9M
Tyler Village investment
20
100
By JAY MILLER
[email protected]
The developer of Tyler Village in
the St. Clair-Superior neighborhood
on the eastern edge of downtown is
hoping to nearly double the usable
office space at the old industrial
complex.
Greystone Commercial Real
Estate’s Anthony Asher told a Cleveland City Council committee last
Tuesday, Oct. 11, that he plans a $9
million redevelopment of one of the
more than a dozen industrial-age
buildings that sprawl over more
than a city block at East 36th Street
and Euclid Avenue. The developer
hopes to populate the building,
called Building 42, with young,
growing businesses looking for
unique office space.
Building 42 is a six-story brick
building with 158,280 square feet.
The complex is home to about 25
businesses, including Opera Cleveland, John Deere, a charter school,
an audio studio and marketing firm
DigiKnow. They occupy about 170,000
square feet in several buildings and
employ nearly 300 people. While
some space remains in those buildings, Mr. Asher said after the
meeting that it’s time to prepare another building for future growth —
a rare example of speculative real
estate development in the weak
economy.
“We’ve got a lot of prospects (for
the remaining space in the existing
buildings) and a lot of them will roll
over into this new space,” he said.
It doesn’t hurt that starting now
will allow the city of Cleveland to
apply for a 2011 $4 million state Job
Ready Sites grant to help finance
the complex. The city also plans to
make available $700,000 in low-cost
loans, $180,000 of which can be forgiven if certain goals are met.
The plan is to gut the building,
replace windows and create modern
office space over the next 18 to 24
months. The goal is to have a building
that meets the highest green building
standards, a requirement for the
state Job Ready Sites grant.
Tyler Village once was the home
of the W.S. Tyler Co., which made
elevator cabs. It built a 24-building,
1 million-square-foot industrial complex on the 10-acre site before succumbing to changes in the industry
after World War II.
Greystone took on the complex in
2005 and steadily has demolished
obsolete buildings for parking and
strategically refurbished and marketed the better buildings.
Council committees will continue
to review the financial package over
the next few weeks but the project
likely will be approved since it has
overwhelming council support.
City of Cleveland economic development director Tracey Nichols
told council that a market for this
kind of space exists in the city.
“We have a lot of companies
interested in this type of space,” she
said. “We’re excited to have more
product on line.”
■
20
70
20
50
20
40
20
30
20
20
20
10
B
1
oo
KOF
LISTS
G
E
T
N O T I C E D
2
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4
5
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Stay focused on key descision
makers in 2012
Crain’s Book of Lists. Northeast Ohio’s most
comprehensive source of business data.
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RESERVE YOUR SPACE NOW: 216-522-1383 OR [email protected]
20111017-NEWS--10-NAT-CCI-CL_--
10
10/13/2011
3:52 PM
Page 1
OCTOBER 17 - 23, 2011
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker ([email protected])
EDITOR:
Mark Dodosh ([email protected])
MANAGING EDITOR:
Scott Suttell ([email protected])
OPINION
Listen
I
t’s easy to ridicule the Occupy Wall Street protestors. They’re not particularly eloquent, and
their demands — crowdsourced, appropriately,
for a social media world — aren’t very clear. You
probably wouldn’t expect a business newspaper to
embrace the anti-corporate specifics of the Occupy
Wall Street agenda, to the extent they exist, and we
don’t. Not exactly, at least.
But as the movement spreads across the country,
including to Cleveland, and heads into its second
month, it’s worth considering why this protest
seems to be finding a voice. Those who dismiss
Occupy Wall Street as just a bunch of bitter class
warriors who can’t cut it in the working world are
missing the deep feelings of anger throughout the
country at bailouts, the lousy job market, growing
income inequality and the influence of corporate
money on the political process.
Regardless of how you feel about their point of
view, members of the conservative Tea Party have
proven to be effective in drawing attention to, and
then support for, their vision of smaller government
and lower taxes. But remember how they were
portrayed at the start? National media focused on
the people at rallies who would hold up the most
derogatory and offensive signs. Every protest movement has those, but they shouldn’t invalidate the
real concerns of citizens, honestly and passionately
expressed.
At their base, the Tea Party and Occupy Wall
Street share a core concern: This country isn’t
working. Literally, for 9.1% (officially; in reality it’s
nearly 20%) of Americans, and figuratively, for virtually everyone.
In a much-discussed post last week titled “Here’s
What the Wall Street Protestors are So Angry
About,” the website BusinessInsider.com ran a
series of 41 charts that paint a disturbing picture of
the American economy. (You can find the post at
http://tinyurl.com/69p3ghb.)
Trends in employment, wages, bank lending and
more all are going in the wrong direction. As Business
Insider.com notes, “The problem in a nutshell is
this: Inequality in this country has hit a level that
has been seen only once in the nation’s history — at
the end of the 1920s — and unemployment has
reached a level that has been seen only once since
the Great Depression. And corporate profits are at a
record high.”
We certainly don’t begrudge people making
money. Corporations should maximize their profits,
for the good of shareholders and workers. But
everyone, Republican and Democrat, should be
concerned that the income gains at the top are not
being accompanied by gains in the middle class and
among the poor. Indeed, recent federal data showed
that working-age households saw their real income
decline in the first decade of this century — a clear
sign the nation’s economic engine has sputtered.
Both Occupy Wall Street and the Tea Party are
powerful symbols of discontent. So we say, good for
them. Keep raising hell. Maybe this kind of pressure
will bring a clarity of vision to policymakers that so
far has been lacking, to the country’s detriment.
FROM THE PUBLISHER
It’s time to hang up the BlackBerry
Y
office, so back I went. Because you know
ears ago, my wife and I sat in the
we can’t go an hour or two without
darkness of a Playhouse Square
emails, right?
theater (I’m pretty sure it was
So I was thinking as I walked that I was
The Palace) and howled to the
beginning to realize why our kids could
non-stop jokes of Jerry Seinfeld. One of
not imagine us taking so long to respond
the best themes centered on him and his
to their text messages. There was a time
father — more specifically his angst
— not that long ago — that I would have
about becoming his father.
answered with my usual misMany of you probably know
sive about how not all people
the shtick, about how Jerry had BRIAN
are tethered to their phone and
begun making “old man noises” TUCKER
drop everything they do to
when he got up from a chair, and
reply to a text message, blah,
that he was afraid it was just the
blah, blah.
start of his becoming his dad.
But that was way back then
The question is: Can you
(maybe a year, maybe less).
become your kids?
Boy, how things have changed,
Of course not, you say. And
and my awakening began with
you’d be right, mostly.
the realization that I went back
But let me share an experifor my phone, despite the fact
ence from last week, when I was
that I would only be away from the office
scheduled to speak before the Cleveland
for a couple hours, at most.
Metropolitan Bar Association’s corpoSo there I am, walking down Saint
rate law section. The site was its offices
Clair Avenue, juggling my umbrella and
in the Galleria, so I looked forward to
BlackBerry, trying to check my emails. A
the walk from our Warehouse District
quick glance showed me that I had none,
address.
so I slipped it back into my pocket. Of
I got to the elevator and realized I had
course, that was Wednesday and by now
— gasp — left my smart phone in my
we all know that Research in Motion, the
maker of what once was the most powerful phone/data device on the planet,
was in the midst of a major, worldwide
problem.
As I write this, my BlackBerry still
hasn’t forwarded any emails for two
days, RIM’s stock was dropping, and it
had all the potential for what one telecom analyst called a “bloodbath.” So at
a time when there are actually more
American wireless subscribers (327.6
million) than there are Americans (315.5
million), RIM and its heretofore handheld juggernaut were on the ropes.
“Dear BlackBerry,” Advertising Age
quoted one angry tweet last Thursday,
“please give me a refund so I can buy an
iPhone.” The AdAge Digital story went
on to say that RIM had done little in two
days other than hold a short phone conference with reporters and post notifications on its website and Twitter.
After several BlackBerries, RIM just
lost me. And I’m guessing I’ll be joined
by thousands, if not millions, of users
like me. Oh well, RIM, it was a great run
for a while.
■
PERSONAL VIEW
MMPI deal warrants more consideration
By JAY MILLER
I
t may be time to review the meaning
of a public-private partnership.
While media regularly champion
the idea of a public-private partnership, we don’t always accept the notion
that in these deals government is going
into private business with a company,
not the other way around. The company is
not going into the government business.
In recent articles, The Plain Dealer and
the weekly Scene “exposed” that MMPI
Inc., the Chicago company that is building
the new medical mart and convention
center, is not pursuing the kinds of medical technology tenants everyone expected
to populate the medical mart. (Or at
least, it’s not succeeding in the pursuit of
those tenants.)
Their stories suggested that, behind
Mr. Miller covers government for
Crain’s Cleveland Business.
the scenes while no one is looking, the
Chicago company is jeopardizing the
$465 million in public tax dollars that are
building the complex on Cleveland’s
mall. They say the medical mart concept
might not succeed.
The media report that instead of trying
to sign med-tech firms to come to the
medical mart, that would, in turn, attract
doctors and hospital purchasing executives to Cleveland, Med Mart officials are
pursuing educational institutions that
would bring doctors interested in learning
new best practices and brushing up on
old skills.
The suggestion that this private business is doing something funny, something being hidden from the public, mis-
understands key issues about publicprivate partnerships.
I’ve not spoken to anyone from MMPI
and so I’ve not heard their side of the story.
But my observations are based on what I
know about how this deal came together
and how the private sector operates.
Before getting into specifics, a little
history is instructive.
This march to a medical mart and
convention center was not like con man
Harold Hill in the musical “The Music
Man,” telling River City elders they needed
a marching band. It was not MMPI, the
private partner, that said a medical technology showroom would succeed in
Cleveland, and please give us millions of
dollars to build it.
That idea was produced locally. It was
first floated in the 1980s and then
See VIEW Page 11
20111017-NEWS--11-NAT-CCI-CL_--
10/13/2011
3:54 PM
Page 1
OCTOBER 17 - 23, 2011
THE BIG ISSUE
What do you think of the Occupy Wall Street, Occupy Cleveland and other protests?
What do you look for
in a law firm?
KENNETH GARNER
CHRISTINE ACKLEY
TOM FRISINA
CHUCK DELANEY
Cleveland
Twinsburg
North Royalton
Cleveland
I don’t think it will change
anything. The way the politics are in our country, the
way things are in Washington, D.C., (the rich) get
what they want.
I hope it changes something as some changes
are needed. Big government, big business, it
doesn’t seem to be helping the small person.
I am all for visible and conspicuous voices for
change. That’s how things
happen in a democracy. It
starts at the grassroots.
I’m for it; I’ve been (on
Public Square at Occupy
Cleveland) a week. When
you have people too frustrated, it could flash into
violence. But that won’t
happen here. There is no
leader here — a leader
would have his (or her)
own agenda.
Strong leadership.
➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.
View: Deals change in business world
Competing in today’s business climate can feel like you’re in the jungle.
To survive, you need experienced advisors with the necessary legal skills and
continued from PAGE 10
brought to fruition by a campaign
initiated by Cleveland Clinic president Toby Cosgrove and Cuyahoga
County Commissioner Tim Hagan.
Once local public support began to
build, it was Clevelanders who sold
MMPI on the idea and put together
the deal that brought the real estate
developer to Cleveland.
If there was any deception, it was
on the part of the locals. They, not
MMPI, told us we should pay an
additional tax to build a medical
mart and convention center, and
they painted pictures of doctors and
hospital administrators coming to
Cleveland to shop for fancy medical
equipment.
MMPI only agreed to the concept
the public officials proposed.
Further, let’s not forget the concept of a medical mart was wedded
to a broader local issue. The ultimate
goal is to bring conventioneers to
Cleveland, whether they are health care
professionals or auto parts makers.
The city had an aging convention
center that couldn’t compete with
more modern facilities. The old
convention center needed either to
be closed, taking Cleveland out of the
convention business completely, or the
community needed to build a new one.
In other words, the public mission is not to bring medical technology companies to an industry showroom in Cleveland. The mission is
to build a successful convention
center. But with other modern convention centers around the country
struggling, selling the cost of a
generic convention center would
have been very difficult.
So the politicians justified the
cost of the building by finding a spe-
cialty niche. They chose the health
care industry, a growing industry
with a strong base in Northeast
Ohio. That may or may not prove to
be a good local decision.
It’s important, too, to remember
that this decision to go into business
with a private developer involved
taking a business risk, not a politician’s campaign pledge. When the
community hears public officials
expound their positions on a great
many issues, they expect those
statements to be inviolate pledges
to follow very specific policies.
However, businesses pledge only
to remain profitable for their owners.
That mission sometimes has harsh
consequences for the communities
that host those businesses — will
Cleveland ever forget Art Modell
taking his football team to Baltimore?
— and cities never should forget
that mission when they enter into a
partnership with the private sector.
So, MMPI came to town and
started to market its medical mart
to medical products makers. It
appears the company explored the
market and found the premise proposed by the Clevelanders wanting.
So it decided to build its marketing
around a different concept: more
education, less hardware.
If MMPI succeeds by attracting
medical schools to the medical mart
instead of bring in medical hardware makers, what difference does
it make?
It would be unforgiveable for a
company to continue to build a
boat it knows will leak and sink to
the bottom just because the customer
asked for the leaky design. The
company has an obligation to build
a different boat for its customer.
GET DAILY NEWS ALERTS FROM CRAIN’S !
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And since MMPI is a private company and two other cities followed
Cleveland’s lead and announced
plans for their own medical marts,
it wouldn’t be smart for MMPI to
announce loudly and publicly, so the
competition can hear, that it’s going
in a different direction. Let Nashville
and New York continue to chase that
other market.
MMPI’s change of direction isn’t
deception. It is — we can hope, since
nothing is a sure thing — just a good
business decision.
■
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11
20111017-NEWS--12-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
Tryout: Hey, it’s harder than it looks
I don’t remember what I was doing
on April 6, 2009, but I most likely
was watching the NCAA men’s
basketball tournament championship
game.
I do know what Travis Walton was
doing: playing for Michigan State,
against North Carolina, in an eventual 89-72 victory for the Tar Heels.
He’d just been named Big Ten
Defensive Player of the Year.
The 6-foot-2 swingman from Lima,
Ohio, played professionally in
Germany until May. Since then,
he’s been conducting camps in Lima
and East Lansing, Mich., where he
was a three-year captain and ranks
sixth in career assists with 555.
What was he doing in Cleveland?
“I’m trying to get a shot at the
(NBA),” he said.
Demetrius Fugate had the same
thought — and didn’t let something
small like the Pacific Ocean stand in
his way. The 6-6 “big guard,” as he
described himself, flew from Japan,
where he was on a business trip, to
Columbus the night before the
tryout, and borrowed a friend’s car
for the two-hour drive. Mr. Fugate
played collegiately at Cincinnati.
But Saturday didn’t start as well
as he would have liked. In a
warmup three-man-weave drill, he
injured his right ankle and spent
some time with the trainer. After
Sunday’s morning session, he hitched
a ride to Cleveland Hopkins International Airport and flew back to
Miami. He said he attended the Cleveland tryout to expand his options;
in two weeks, he’ll be in training
camp with the Idaho Stampede, an
NBADL franchise located in Boise.
Options are what Jay-R Strowbridge has, too. The Alabama native,
a well-built, 5-11 point guard, played
two years at Nebraska before transferring to Jacksonville State in Jacksonville, Ala., to be closer to family
after a cousin was murdered. Later,
he played a year at Oregon while
earning a master’s degree in education.
Two weeks before the Cleveland
tryout, Mr. Strowbridge flew to
Houston for a look with the Rio
Grande Valley Vipers, but said he
hadn’t heard anything from that
team, whose open tryout had
upwards of 80 players. So he drove
from Ann Arbor, Mich., where his
wife attends the University of
Michigan’s Ross School of Business,
to Cleveland for the tryout.
****
YOU OFTEN HEAR COLLEGE
FOOTBALL PLAYERS, once they
get to the NFL, talk about how much
quicker the game is. Hogwash, I
always thought — until this tryout.
I made Austintown Fitch’s junior
varsity team as a sophomore, but
played only when we needed to foul
at the end of games. And I found in
the spring when I re-joined the
track team that I was badly out of
running shape. I didn’t play hoops
again.
Since then, I’ve played in rec
leagues in Lakewood and Strongsville
— but banned myself from those
after becoming too angry at referees.
(I hate losing. And bad officiating.)
Now I play twice each week before
work at a suburban high school
with a group of guys I know well,
and it’s a long way from the NBADL.
First up was conditioning — a
cakewalk for me but a struggle for
some others. Then was the standard-issue three-man weave drill
that most players learn as seventhand eighth-graders. (Some in the
group struggled, and the bosses
were none too pleased.)
Then, though, came the games,
10 minutes each with teams determined by the Canton team’s director
of player personnel, James Williams. And I immediately struggled,
Defense was a
problem; this is
former Cleveland State and
Morgan State
guard Joe Davis
passing over
Crain’s assistant
editor Joel
Hammond for
an easy bucket.
MARC GOLUB PHOTOS
attributable to being overmatched
and in a gigantic hurry: a jumper off
a screen that was woefully short. A
3-pointer nowhere close. Later,
back-to-back shots rejected, one by
P. Allen Stinnett, who played at
Creighton and was the Missouri
Valley Conference’s freshman of the
year during the 2007-08 season.
On defense — where I knew I’d
struggle the most — my 140-pound
frame had little chance against guys
with a 40-pound head start, let
alone the 6-foot-8 post player onto
whom I somehow got switched.
Leaving the city on Saturday
night, I was discouraged.
Then something clicked. Earlier
that night, the Cavaliers’ staff installed a few plays run by the home
team and probably everyone else in
the NBA. It was basic stuff, though
not all of my competitors got the
gist, resulting in more frustration
for the staff. On Sunday, my team’s
point guard — Joe Davis, a Cleveland native who played at Cleveland
State before transferring to Morgan
State in Baltimore — was switched
to another team, as about 10 guys
didn’t come back for Sunday morning’s session.
Taking over at my natural position, I commanded my team and
started knocking down shots: a
runner in the paint on a play called
“fist out,” where a big man and I
ran a pick-and-roll on the wing.
(Think LeBron James and Zydrunas
Ilgauskas on the pick-and-pop for a
Z jumper, with Anderson Varejao
roaming the baseline as the
“dunker” if LeBron drove the lane.)
Later, a steal and on the other
end, a nifty behind-the-back pass,
which the team’s general manager,
Wes Wilcox, said “was at just the
right time. I don’t care about the
behind the back; the timing was
perfect.” After that was a nothingbut-net 3-pointer on a kickout from
Mr. Fugate, and a fill-the-lane
layup, again off a nice feed from
Fugate. (What you see in the picture
on Page 3.)
“You looked like a basketball
player,” Mr. Wilcox said.
Now we’re talking.
****
THE CAVS IN JULY OFFICIALLY
ANNOUNCED their purchase of the
NBADL’s New Mexico Thunderbirds and moved them to Canton,
where the Charge will play at the
Canton Civic Center. The Cavs for
the past three years had shared the
Erie Bayhawks with the Toronto
continued on the NEXT PAGE ➤
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20111017-NEWS--13-NAT-CCI-CL_--
10/13/2011
2:12 PM
Page 1
OCTOBER 17 - 23, 2011
Raptors, but wanted more control
over personnel development, and
thus now operate their own team.
It was fitting that the Cavs’ representatives at the tryout had taken the
long road to their current positions,
because that’s the uphill battle facing
any of the weekend’s players eventually selected for D-League training
camp. Mr. Wilcox played at six different colleges before landing a job in
the Miami Heat’s video room. After
10 months, he moved to the New
Orleans Hornets, and when Paul
Silas became the Cavaliers’ coach in
2003, Mr. Wilcox joined the team as
an advanced scout. For the past
three seasons, Mr. Wilcox had been
the Cavs’ top pro scout.
Mr. Williams, the Canton team’s
director of player personnel, is an
Atlanta native who played at Bryan
College and until August was training
players privately. In April, Mr.
Williams sent letters to all 30 NBA
teams, expressing interest in joining
their staffs. The Cavs responded, and
in August, he interviewed — “the
longest interview of my life,” he said
— and got the job. Now he’s in
charge of finding potential players,
communicating with their agents
and other tasks.
And then there was Ira Newble,
who played with the Cavs for 4½
years — including on the 2007 team
that advanced to the NBA Finals by
finally knocking off the Pistons —
and now, at 35, is awaiting the end of
the NBA’s lockout before making his
next move. (And yes, Mr. Newble
agreed with me when I said that he
and the other members of LeBron’s
supporting cast got a bad rap.)
Mr. Wilcox said he was looking for
talented players who understand the
game, can take instruction and play
Jay-R Strowbridge, who played point
guard at Nebraska, Jacksonville State
and Oregon, was one of the top players at the tryout.
There was a lot of looking up over the
course of the two-day tryout, as the
competition at times turned into a veritable dunk contest.
defense. “Everyone in the NBA can
score,” he said on multiple occasions.
Thus, the conditioning — “You
wouldn’t go to a job interview at an
insurance agency unprepared, so
why come to a basketball tryout out
of shape?” he asked — the offensive
plays and, at the end of Saturday
night and Sunday morning’s sessions,
a “closeout” drill, which turns into a
one-on-one game from the wing.
The drill’s purpose is to see which
players, isolated against top competition, can defend. I was a part of
Sunday’s group, which also included
the tryout’s top six players and
Mr. Newble. After a few passes, it
breaks down into just two players,
and you’re not done until you get a
stop. And Mr. Davis, the point guard
from Cleveland and Morgan State,
absolutely ate me up on four straight
possessions. Mr. Wilcox mercifully
rotated me out.
And despite being overmatched
in that drill, I earned more compliments for my play on Sunday.
“You were sharp, and controlled
the game,” Mr. Williams said. “Once you
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Canton’s general manager Wes Wilcox
ran the show.
James Williams is the team’s director
of player personnel.
got comfortable and adjusted to the
speed of the game, you looked good.”
Mr. Wilcox told the group the
Cavs would be in touch if there was
a future for them in the organization.
I won’t get a call, but I made enough
of an impression to walk away
happy. I purposely didn’t introduce
myself to him, not wanting any
special treatment. And he told me
after the tryout that he had no idea
I was a reporter until Mr. Williams
told him late on Sunday. He said —
this probably doesn’t speak well to
my profession’s reputation — he
expected someone perhaps, ahem,
a little heavier, with little skill.
“Are you a D-League player? No,”
Mr. Wilcox told me. “But you hung
tough and were in control. You
played well.”
Good enough for me.
■
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20111017-NEWS--14-NAT-CCI-CL_--
14
10/12/2011
2:30 PM
Page 1
OCTOBER 17 - 23, 2011
GOING PLACES
JOB CHANGES
CreatingValue.
ARCHITECTURE
BRANDSTETTER CARROLL INC.:
Bruce Whitehead to vice president;
Ray B. DelaMotte to business
development director.
ENGINEERING
ALBER & RICE INC.: Ronald Shaw
to senior civil engineer.
FINANCE
LIBERTY BANK NA: Christopher J.
Smerglia to senior vice president,
commercial lending team leader;
Jamie Brotherton to senior vice
president, senior lender; Richard
Parkin to vice president, commercial
lending.
OHIO COMMERCE BANK: Joseph
Tymoszczuk to credit analyst.
FINANCIAL SERVICE
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You Value?
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and tax professionals to help your
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BOBER MARKEY FEDOROVICH:
Andrea M. Gauding and Vanessa
Anton to senior managers; Jennifer
Elsass, Joanna Hoiles and
Jonathan O’Donnell to managers;
Harrison Orendorf and Nichole
Prater to supervisors; Samantha
Buemi and Matthew Lawrence to
senior accountants.
KEY EQUIPMENT FINANCE:
Joseph A. DiLallo to vice president,
corporate aviation finance.
MCMANUS, DOSEN & CO.: Renee
M. Moenich to member, accounting
and financial services group.
PEASE & ASSOCIATES INC.:
Elizabeth Kroll to senior staff
member, CFO services department.
RETIREMENT SOLUTIONS:
Christine Lynch to administrative
assistant.
SS&G: Alyssa Lane, Matt Long,
I want to change the world.
All-School Open House
Sunday, November 6 12:30 – 3:00 p.m.
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app on your
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to learn more.
Michele Linton, Linette Seifert,
Marc Servodio, Aaron Saidel,
Lauren Dunbar, Jeremy Banchek,
Steve Brinker, Lindsay Turbow
and Karen Cull to senior associates;
Kyra Shank, Anne Marie Griffith,
Lauren Larkin, Maureen Fertig,
Sean Kilbane and Linda Wasco
to managers; Mary Rutt and Kim
Hocevar to associates; Theresa
Wilson, Jennifer Rickenbacker
and Dee Miceli to executive
administrative assistants; Abby
Surloff to senior administrative
assistant.
Smerglia
Brotherton Parkin
DiLallo
Petrik
Schmitt
HEALTH CARE
Lewis
Rawlin
Anderson
CLEVELAND CLINIC: Dr. Brad
Borden to chairman, Emergency
Services Institute.
NONPROFIT
WEINBERG WEALTH MANAGEMENT LLC: Jared S. Miller to
investment adviser.
GOVERNMENT
CITY OF CLEVELAND: Frank J.
Petrik to assistant commissioner, risk
management and regulatory compliance manager, Division of Water.
MOSKEY DENTAL LAB: Ann
Schmitt to certified dental technician.
INSURANCE
BROOKER INSURANCE AGENCY:
Jamie Debenham to vice president,
employee benefits.
HYLANT GROUP: Michael Dillon to
service assistant, employee benefits
group.
LEGAL
TUCKER ELLIS & WEST: John Q.
Lewis and Dustin B. Rawlin to
partners.
MANUFACTURING
VITAMIX CORP.: Donald Snyder
to vice president, sales, Household
Division.
BENJAMIN ROSE INSTITUTE ON
AGING: Geneva Anderson to vice
president, human resources.
LAKE COUNTY YMCA: Greg
Church to program director, East
End Branch.
RECOVERY RESOURCES: Megan
Kleidon to director of programs and
services.
SUMMA FOUNDATION: Steven P.
Schmidt to chief operating officer.
TECHNOLOGY ENTREPRENEURIAL
CENTER OF HUDSON: Michael
DeAloia to fundraising development
director.
REAL ESTATE
CBRE: Susan Lines to senior associate.
SERVICE
MARKETING
NEO FOOD TOURS: Anya Hodgson
to vice president, event development.
FATHOM ONLINE MARKETING:
Kevin Herendeen to CFO.
AWARDS
GLAZEN CREATIVE STUDIOS:
Jake Gearhart to 3D animator,
editor and motion graphic artist;
Annie Murmann to producer and
scriptwriter.
RECOVERY RESOURCES:
Raymond J. Marvar (Tucker, Ellis
& West LLP and Premier Physicians)
received the 2011 Exemplar Award.
STERN: Cortnie Redington to
director of publicity and special events.
Send information for Going Places to
[email protected].
20111017-NEWS--15-NAT-CCI-CL_--
10/12/2011
2:31 PM
Page 1
OCTOBER 17 - 23, 2011
TAX LIENS
The Internal Revenue Service filed tax
liens against the following businesses
in the Cuyahoga County Recorder’s
Office. The IRS files a tax lien to protect
the interests of the federal government.
The lien is a public notice to creditors
that the government has a claim against
a company’s property. Liens reported
here are $5,000 and higher. Dates
listed are the dates the documents
were filed in the Recorder’s Office.
LIENS FILED
Studio Techne Inc.
12210 Euclid Ave., Cleveland
ID: 34-1790162
Date filed: Sept. 1, 2011
Type: Employer’s withholding,
unemployment
Amount: $332,192
unemployment, corporate income
Amount: $33,571
Northeast Contracting LLC
25446 Bryden Road, Beachwood
ID: 20-4369728
unemployment
Amount: $33,136
Signature Interiors Inc.
13275 Strathmore Drive,
Valley View
ID: 34-1881664
Type: Employer’s withholding
Amount: $29,433
RJL Waterfront Holdings I Ltd.
1148 Main Ave., Cleveland
ID: 32-0035888
Amount: $27,504
ID: 75-3189085
corporate income
Amount: $22,129
Amroc Construction Inc.
1900 Grove Court, Cleveland
ID: 68-0650859
corporate income
Amount: $26,876
Task Force Interiors LLC
3574 W. 44th St., Cleveland
ID: 65-1313251
Amount: $19,148
K Klass Masonry Inc.
15293 Sandalhaven Drive,
Middleburg Heights
ID: 34-0874223
Amount: $26,845
Quality Care Residential
Homes Inc.
9402 Rosewood Ave., Cleveland
Amount: $17,942
Baker Motors Towing Inc.
12214 Detroit Ave., Lakewood
ID: 20-5027878
unemployment
Amount: $16,240
NIA Childcare Enterprise Inc.
4020 Verona Road, Cleveland
ID: 16-1749820
Amount: $18,511
Ovid Group Inc.
8693 E. Craig Drive, Bainbridge
ID: 26-0103951
Type: Corporate income
Toms Seafood Restaurant LLC
3048 Saint Clair Ave., Cleveland
ID: 20-1350790
unemployment
Amount: $15,091
Kidz Corner Inc.
3749 E. 142nd St., Cleveland
ID: 26-0385951
unemployment
Amount: $12,338
United Cable of Ohio Inc.
3682 W. 136th St., Cleveland
ID: 34-1761468
unemployment
Amount: $200,107
Arb Marine Group Inc.
69140 Parkland Blvd., Mayfield Heights
ID: 31-1636806
Amount: $140,904
Woodside Childcare Inc.
2463 N. Taylor Road, Cleveland Heights
ID: 34-1750335
unemployment
Amount: $118,112
Furt Alliance Inc.
615 Rockside Road, Independence
ID: 26-4066947
Amount: $76,001
Jatsek Construction Co.
P.O. Box 41133, Brecksville
ID: 34-1972639
Amount: $72,913
Herbs Plumbing & Heating Inc.
2562 Noble Road, Cleveland Heights
ID: 34-1785963
unemployment
Amount: $44,387
Woodside Childcare Inc.
2463 N. Taylor Road, Cleveland Heights
ID: 34-1750335
Type: Unemployment
Amount: $42,525
South Euclid Cement Contractors Inc.
5770 Alberta Drive, Lyndhurst
ID: 34-1890971
Amount: $41,106
Kordiac Plumbing & Mechanical Co.
11010 Union Ave., Cleveland
ID: 34-1808496
unemployment
Amount: $39,184
Twinstar Group Inc.
P.O. Box 361043, Strongsville
ID: 05-0612383
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20111017-NEWS--16-NAT-CCI-CL_--
16
10/13/2011
4:04 PM
Page 1
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OCTOBER 17 - 23, 2011
Creditors to vote on AmFin plan
By MICHELLE PARK
[email protected]
Nearly two years after it filed for
Chapter 11 bankruptcy protection,
AmFin Financial Corp.’s plan of
reorganization is in the hands of its
creditors.
Voting is under way for the plan,
which contains terms of repayment
for various groups of creditors. If
confirmed, it would bring an end to
the administrative phase of the
Chapter 11 case filed in November
2009 by AmFin, the former parent
company of failed AmTrust Bank.
The deadline for voting is today,
Oct. 17.
To be approved, AmFin’s plan
must receive affirmative votes from
a majority of voting creditors holding
two-thirds or more of the dollar
amount of the claims. The estate has
about 100 creditors, not all of whom
will vote, said Christopher Meyer, a
Squire, Sanders & Dempsey partner
and debtors’ counsel.
Mr. Meyer anticipates approval.
He estimates about 25 plan drafts were
prepared throughout the process.
“We’ve spent time negotiating
with people about what they want and
what they need, and we’ve tried to
address all of that in the plan,” he
said.
A confirmation hearing is scheduled for Tuesday, Oct. 25, before
U.S. Bankruptcy Court Judge Pat E.
Morgenstern-Clarren.
If creditors do not approve the
repayment plan, AmFin would
need to go back to the drawing
board, Mr. Meyer said.
While the day-to-day involvement of the court in AmFin’s activities would end if the plan is
approved, an appeal brought by the
Federal Deposit Insurance Corp.
and other litigation are pending,
Mr. Meyer noted.
The FDIC in late June appealed
to the U.S. Court of Appeals for the
Sixth Circuit a June 6 decision by
U.S. District Court Judge Donald C.
Nugent, who found that the FDIC
failed to prove that AmFin made
a commitment to keep AmTrust
Bank capitalized. The FDIC had
claimed it was owed more than
$500 million because AmFin made
such a commitment, which AmFin
denied.
Creditor claims in the AmFin
case total $170 million, not including
the FDIC’s claims.
The estate has in hand about $8
million to $9 million, according to
Mr. Meyer.
AmFin’s primary assets are real
estate, the value of which is uncertain, and a tax refund it is to receive
from the Internal Revenue Service,
Mr. Meyer said. The estate will
dispose of the real estate to maximize value as it can, he said.
“Our best estimate is that we will
not pay creditors in full,” Mr. Meyer
said.
The tax refund totals more than
$194 million, though its payment
has been delayed by IRS requirements, including an audit and a
payroll tax return that was required
and since has been filed on behalf
of AmTrust Bank, Mr. Meyer said.
AmFin will need to hold its money
in reserve until its litigation with the
FDIC is over, although the FDIC has
agreed to let AmFin pay down
claims of $25,000 or less, he said. ■
Thermoplastics oil pans grease Eaton’s business
By RHODA MIEL
Plastics News
OUR WORK
MEAN MORE
DOES
OPPORTUNITY
FOR YOUR
BUSINESS?
FORMERLY
KNOWN AS THE
SMALL
BUSINESS
ENTERPRISE
PROGRAM
In the early 1990s, Eaton Corp.’s
plastics unit was turning out highvolume interior and exterior trim
parts, but its leaders were not certain if that was the kind of business
on which the company could build
its future.
“That kind of market had been
around for many, many years, and
it was noticeable that our return on
business was getting less and less,”
said Stephen Roberts, manager of
global plastics engineering.
The company evaluated where
its strengths were, and what would
be better field for its plastics. Eaton,
based in Cleveland, is more widely
known in automotive for its powertrain components, transmissions,
chassis and other functional parts.
It made sense for its plastics to
focus on the same area of the car.
So Eaton shifted into highly engineered parts under the hood,
becoming part of a shift from metal
to plastic for some parts, especially
the oil suction tube, which connects the oil pump to the oil pan.
Now the company sees itself as
leading another leap for plastics
under the hood, this time in integrated thermoplastic oil pans which
offer automakers lighter weight and
more integrated parts, and that new
business may lead to more global
production.
That shift is being prompted by
automakers who are both anxious
to shave weight from their cars to
meet increased fuel economy standards in North America while also
contending with new emissions
controls in Europe, Mr. Roberts
said. Eaton has two thermoplastic
oil pans in production already —
used on Cummins diesel engines —
and more ramping up for future
vehicles.
Traditionally, oil pans have been
made of steel or aluminum. Thermoset plastics also have begun to
see more business. Thermoplastic
oil pans promise weight savings
over metal, but the real selling point
is that molders can integrate more
parts into them.
A plastic oil pan, for instance, can
be delivered with gaskets, seals,
baffles, heaters, sensors and the
suction tube that first launched
Eaton’s new business focus. The
more parts that suppliers can integrate, the lower the production
costs and complexity for automakers,
Roberts said.
Depending on the amount of
integration, automakers could cut
10% to 15% of the weight for a basic
oil pan configuration or 40% or
more for one with more parts. If
even more parts, such as oil filters,
can be added to a system, that
would lighten the weight even
more.
“The limitation that we see for us
right now is that we don’t have a
manufacturing footprint in North
America,” Roberts said.
Eaton’s plastics expertise covers
a range of processing methods —
injection molding, compression
injection molding, gas-assist molding,
suction blow molding — but production is centered in Europe with
manufacturing in Brierly Hill, United
Kingdom, and Chumotov, Czech
Republic.
The company was making plans
to expand manufacturing to the
United States in 2008 — in part
because of the increased interest in
plastic oil pans — but backed off
when the economy and auto production cooled down. It still is considering expansion, Mr. Roberts
said.
“That would have been our entry,
but that’s not to say we aren’t looking
at other opportunities,” he said.
There are also growth opportunities in Europe to transfer more
powertrain parts to plastic, he said,
and Eaton expects to be at the front
as lightweighting and emissions
requirements push automakers to
reconsider their traditional ways of
making parts.
■
Rhoda Miel is a staff reporter with
Plastics News, a sister publication
of Crain’s Cleveland Business.
Stuart Lichter involved in $1.7M deal for part of Aurora complex
If your company is a small construction or engineering firm or
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Stuart Lichter, a California realty
developer well known in Ohio, is partners in an investment group that recently paid $1.7 million for a 198,000square-foot portion of the former
Lucas Aerospace Building in Aurora.
Mr. Lichter and Chris Semarjian, a
Beachwood-based NAI Daus broker
who regularly partners with Mr.
Lichter, on Oct. 4 acquired part of
the 1989-vintage complex as Lena
Commerce LLC. The seller was PB IL
Oreo LLC, according to Terry Coyne,
a Grubb & Ellis Co. executive vice
ON THE WEB
Story from
www.CrainsCleveland.com.
president who represented the seller
and announced the transaction with a
news release last week.
PB IL Oreo’s address lists to Private Bancorp, a Chicago-based
lender, according to Portage County
land records. The lender took possession of that portion of the property
Jan. 10, according to a deed in
Portage land records, from JDI
Aerospace LLC, a Chicago-based
investor group, and kept in place a
loan of undisclosed size.
The property has had multiple tenants through the years, and 66,000
square feet of the property that
Messrs. Lichter and Semarjian
acquired is empty now, according to
Mr. Coyne’s brokerage website.
Mark Nasca, a Chagrin Falls-based
investor in JDI Aerospace, said the investment had been profitable
through the long haul of its ownership but declined to discuss the January bank transfer. — Stan Bullard
20111017-NEWS--17-NAT-CCI-CL_--
10/14/2011
4:48 PM
Page 1
20111017-NEWS--18-NAT-CCI-CL_--
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10/12/2011
3:57 PM
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OCTOBER 17 - 23, 2011
Spice of Life Catering diversifies business with move
By KATHY AMES CARR
[email protected]
Spice of Life Catering Co. is kicking
up its operation.
The company that was founded in
2006 by Ben Bebenroth is moving
from its shared space with Marigold
Catering Co. at Lakeside Avenue in
Cleveland into a new headquarters
building at Detroit Avenue and West
58th Street in the Gordon Square Arts
District, a move that was driven by
a decision to branch out its offerings.
Spice of Life, an upscale catering
company that sources 95% of its
ingredients from small family farms
within a 100-mile radius of Cleveland, is incorporating a restaurant
and bar, market and urban garden
setting into its business. It’s all
intended to cultivate more patron
interaction and inspire customers
to become local food advocates,
said Jackie Bebenroth, Ben’s wife
and business partner.
The 6,000-square-foot building
serves Spice of Life’s purpose. The
first floor will be dedicated to a 45seat restaurant and bar that also
will function as the company’s special events space. An additional 60
seats will be available on the patio.
Spice Kitchen + Bar’s opening date
has yet to be determined, but the
restaurant will feature five to eight
seasonal dishes and four to five
daily specials when operational.
The second floor will house offices
and private event space. Plans for a
rooftop patio also are percolating.
Guests aren’t limited to the traditional dining experience, either.
The Spice Rack retail space will sell
a carefully curated collection of
goods made by local foods artisans.
The parking lot behind the building
will transform into Spice Acres, an
urban garden and farm with two
hoophouses that will be used to
grow produce for Spice of Life dishes.
“We’ll encourage people to interact with the garden around them,”
Ms. Bebenroth said. “Ultimately, we
would like to use it as a springboard
to another extension of the business
— edible landscaping consulting services. We’d consult with individuals
looking to establish chef’s gardens.”
Spice of Life is retrofitting the site
for its needs. The renovation likely
will cost $250,000, and Mr. Bebenroth still is scouting for private investors to raise money for the project.
The total project investment is
expected to cost $375,000. The
company last week received a
$40,000 National Retail Assistance
Program loan, which included a
$3,000 Gardening for Greenbacks
grant through the city of Cleveland.
The couple and chefs Brandon
Walukus and Andy Strizak command the nine-employee operation; Spice of Life plans to hire an
additional six employees.
The catering outfit is on track to
do $500,000 in sales this year. The
company so far has that much
booked in events next year.
■
FILE PHOTO/JASON MILLER
Ben Bebenroth, chef and founder of
Spice of Life Catering Co.
BRIGHT SPOTS
Bright Spots is a periodic feature in
Crain’s, highlighting positive business
news in Northeast Ohio. To
submit information, please e-mail Scott
Suttell at [email protected].
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■ ViewRay Inc. said the University
of California’s, Los Angeles Health
System and its Jonsson Comprehensive Cancer Center is the third
oncology research center in the world
to acquire a radiotherapy system
from the Cleveland medical device
company.
ViewRay is developing its new
research radiation therapy system to
feature a patented combination of
radiotherapy delivery and simultaneous magnetic resonance imaging.
Nearly two-thirds of all cancer
patients receive radiation therapy
during their illness, according to
ViewRay. The company said its
system is designed to provide
continuous soft-tissue MR imaging
during treatment so clinicians can
see where the radiation is delivered,
as it’s delivered.
■ Cleveland law firm McDonald
Hopkins LLC said its new office in
Miami already is expanding.
The firm’s office in Miami has
moved to Suite 3130 on the 31st floor of
the Southeast Financial Center “to accommodate growth and expansion.”
“We are very excited that our
space in the Southeast Financial
Center enables us to grow in the
Miami market,” said Raquel A.
Rodriguez, managing member of the
firm’s Miami office, in a statement.
“We are actively recruiting talented
and experienced attorneys to join
our national practice groups.”
McDonald Hopkins entered the
Miami market in late April.
■ The Kowit & Passov Real Estate
Group announced three new deals.
Snap Fitness in February 2012 will
open a 4,700-square-foot space in
the Middlefield Square Shopping
Center in Middlefield. Greg
Guyuron and Adam Zimmerman
with Kowit & Passov represented the
landlord.
The Ohio Association of Public
School Employees has consolidated
two local offices for a central location. On Nov. 1, the association will
be at 3380 Brecksville Road in Richfield in the Alexis Park Office Building. Nanci Ferrante and Mr.
Guyuron represented the landlord
on this 4,448-square-foot lease.
Family apparel store Citi Trends
will open Dec. 1 at the Shore Center
Plaza South in Euclid. Mr. Guyuron
and Tori Nook represented the landlord on the 12,259-square-foot lease.
20111017-NEWS--19-NAT-CCI-CL_--
10/12/2011
3:50 PM
Page 1
For the fifth year in a row, Crain’s
Cleveland Business is honoring the
area’s top fiscal officers with its CFO
of the Year Awards.
The honorees all have provided
standout fiscal direction to their
respective organizations, providing
guidance during these times of
economic uncertainty.
An independent panel of judges
reviewed the nominees, taking into
account the following: candidate
backgrounds; how the nominee
contributed to the company’s
growth and/or profitability; how the
nominee contributed to other areas
of corporate management; and how
the nominee made contributions
outside the company (such as social,
nonprofit, family, faith-based and
community involvement).
This year’s judges were Marilyn A.
Eisele, CFO and vice presidentfinance, The PDI Group; Guy Fabe,
tax partner, PricewaterhouseCoopers LLP; J.T. Mullen, chief investment strategist, Fairport Asset
Management; Michael J. O’Connor,
financial adviser, Morgan Stanley
Smith Barney; Stephen J. Smith, CFO,
American Greetings Corp.; and Tim
Pistell, retired CFO and executive
vice president of finance and administration at Parker Hannifin Corp.
Finalists and nominees will be
honored at an event from 5:30 p.m.
to 8:30 p.m. Oct. 25 at LaCentre
Conference and Banquet Facility,
Westlake.
Tickets to the event can be
purchased at www.Crains
Cleveland.com/CFOTIX or by
calling 216-771-5388.
2011 CFO OF THE YEAR FINALISTS
■ Bill Chorba, NineSigma Inc.
PAGE C-2
■ Mark Clark, FirstEnergy
Corp. PAGE C-2
■ Kathleen Dillon, Ohio
Technical College PAGE C-4
■ Elizabeth A. Donaldson,
De Nora Tech Inc. PAGE C-4
■ Gale W. Fisk, Greater Cleveland Regional Transit Authority
PAGE C-5
■ Mary Ann Freas, Southwest
Community Health System
PAGE C-6
■ Betty J. Goodman, Vocational
Guidance Services PAGE C-6
■ Dave Hamrick, InfoCision
Management Corp. PAGE C-7
■ Dennis Jancsy, Medical
Mutual of Ohio PAGE C-7
■ Richard “Duke” Jankura,
JumpStart Inc. PAGE C-8
■ Elaine Kapusta, Dots LLC
PAGE C-8
■ Michael E. Mayher, Lakeland Community College PAGE
C-8
■ Scott A. Morgan, Cuyahoga
County Public Library PAGE
C-10
■ Chris Pascarella, Enprotech
Corp. PAGE C-10
■ Vincent Petrella, Lincoln
Electric Co. PAGE C-11
■ Michael Pressnell, ClarkReliance PAGE C-11
■ Barry Reis, Jewish Federation of Cleveland PAGE C-12
■ Cameron C. Rubino,
OrthoHelix Surgical Designs Inc.
PAGE C-12
■ Susan Suvak, Majestic Steel
USA Inc. PAGE C-13
■ Robert Trabucco, Sterling
Jewelers Inc. PAGE C-13
* PROFILE INFORMATION IS FROM CFO OF THE YEAR NOMINATION FORMS
ELSEWHERE IN THE SECTION
■ Meet the judges.
■ Check out last year’s event. A look at last year’s CFO of the Year
Awards ceremony, in pictures.
■ Meet the nominees. Put names of our other CFO of the Year
nominees with their faces.
ON THE WEB: For profiles of past winners and coverage of the last four CFO of the Year events, visit www.CrainsCleveland.com/CFO.
20111017-NEWS--20-NAT-CCI-CL_--
C-2
10/14/2011
4:51 PM
Page 1
BILL CHORBA
NineSigma Inc. ◆ Beachwood
B
ill Chorba’s
breadth of knowledge, positive
outlook and ability
to command tough challenges with integrity have
advanced a Beachwood
company’s financial
position.
Mr. Chorba has been a key driver
behind the growth in NineSigma’s
revenue, which in 2010 was $9
million. The business development
organization attributes the CFO’s
cost-containment strategies and
capital-raising efforts to continued
growth that forecasts 25%
to 30% year-over-year
revenue gains over the
next several years, as well
as realized revenue growth
of more than 20% last
year.
“Budget pressures,
increasing red tape,
helping with tough strategic decision-making and restructuring
companies in difficult times have
become more common for the top
finance chief,” the nomination said.
“Bill has handled these pressures
with class.”
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Mr. Chorba’s efforts to advance
the business include outside capital
raises to spur accelerated growth,
helping to identify new markets for
expansion and overhauling vendor
relationships.
His most recent initiatives include
moving many core on-premise IT
platforms to the cloud, which
bolster the speed and efficiency of
NineSigma’s IT systems with little
associated costs.
Mr. Chorba’s corporate management contributions also extend
into strategic planning, human
resources issues, board meetings,
legal aid and compliances, team
building and investor relations.
“His positive attitude, creative
thinking and ability to listen and
lead make him a stand-out in every
project, even those outside the
finance realm,” the nomination
said.
The CFO also has proposed an
employee wellness program aimed
at increasing health awareness and
fostering a more healthy work
environment.
He also engages employees in the
company’s well-being by educating
them on the organization’s vital
statistics.
“Understanding the importance
of upholding a high level of fiscal
stewardship, he openly shares
performance data status and
financials with employees,” the
nomination said. “This candor and
honesty has eliminated the element
of fear that developed as a result of
the most recent economic downturn.”
Mr. Chorba’s involvement outside
NineSigma includes participation
in the Ohio Society of CPAs as an
executive board member. He also is
former treasurer of the Pi Lambda
Phi Educational Foundation, which
provides scholarships and development programs to foster the growth
of future leaders.
MARK CLARK
FirstEnergy Corp. ◆ Akron
M
ark Clark grew
up in Akron
and has spent
his career at
FirstEnergy and its predecessor company, Ohio
Edison.
With more than 30 years
at the company, Mr. Clark
has been with the organization
during periods of significant growth,
primarily through acquisitions of
other regional energy companies.
“As CFO, Mark has streamlined
the company’s financial operations
to ensure the strategic alignment
with business objectives,” the nomination said. “He improved liquidity
during the most challenging economic period in recent history
while maintaining investment grade
metrics and shareholder dividends.”
In February, Akron-based
FirstEnergy Corp.’s acquisition of
Allegheny Energy Inc. closed,
marking the beginning of the utilities’ combined operation. According
to the nomination, the merger was
expected to generate annual revenues of more than $16 billion with
assets of nearly $46 billion.
“As a result of his actions to
strengthen the company’s balance
sheet, FirstEnergy was in the position to capitalize on the $8.5 million
merger with Allegheny Energy,” the
nomination said. “Mark
designed the financial
blueprint for the merger
working to position the
transaction to be accretive
to earnings in the first full
year after completion.”
Mr. Clark has held a
number of positions in
finance, operations and strategic
planning. He became FirstEnergy
CFO in April 2009.
At the company, he has a broad
range of responsibilities. For
example, he has overseen the
development of new management
reports that provide transparency
and clarity to all of the company’s
business units.
Additionally, he serves in the
capacity of being a sought-after
adviser in the company, one who is
frequently called on for his advice
and insight.
“He has been instrumental in
the company’s growth from a
relatively small, vertically integrated
regulated utility to a diversified
energy company with both regulated
utility operations and a competitive
generation business,” the nomination said. “His vision and leadership were key to developing the
strategic focus that helped build the
company on a solid base of
financial strength and flexibility.”
JUDGE’S PROFILE
Marilyn A. Eisele
CFO and vice president of finance ◆ The PDI Group
Marilyn A. Eisele joined Solonbased The PDI Group in April 2011.
PDI is a designer and producer of
munitions trailers, weapons containers/
modules, weapons loaders, aircraft
tow vehicles, weapons adapters,
munitions assembly conveyor systems, tow bars, specialized electronic
equipment for smart weapons, steerable axle systems and components
used primarily by the United States
and 38 allied air forces.
Prior to joining PDI, Ms. Eisele
worked as CFO of Five Star Technologies Inc., an advanced materials
company that developed and
manufactured proprietary electronic
materials for the mobile displays,
photovoltaics and microelectronic
packaging
markets.
She also was
CFO to several
informationbased technology
startups and served as CFO to two
public companies.
After obtaining her undergraduate
degree from Bowling Green State
University, she was with PriceWaterhouseCoopers for 15 years serving
public and private companies with
a specialization in mergers and
acquisitions and high-growth businesses.
She and her husband, Mark, live
in Shaker Heights and have three
children.
CONGRATULATIONS
WesternȱReserveȱPartnersȱ
proudly recognizes our own
proudlyȱrecognizesȱourȱown
WilliamȱE.ȱGoodill
andȱallȱofȱtheȱ2011ȱ
Crain’sȱClevelandȱBusinessȱ
“CFOȱofȱtheȱYear”ȱ
nominees
Forȱmoreȱinformation,ȱpleaseȱcallȱ(216)ȱ589
For
more information, please call (216) 589Ȭ0900
0900ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ
orȱvisitȱwww.wesrespartners.com
20111017-NEWS--21-NAT-CCI-CL_--
10/12/2011
2:28 PM
Page 1
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20111017-NEWS--22-NAT-CCI-CL_--
C-4
10/14/2011
4:52 PM
Page 1
OCTOBER 17 - 23, 2011
KATHLEEN DILLON
Ohio Technical College ◆ Cleveland
O
WARNING: This activity may be habit forming.
hio Technical
College’s enrollment and staff
have grown
markedly in the 10 years
Kathleen Dillon has spent
at the school, located on
East 51st Street in Cleveland.
Ms. Dillon’s responsibilities, too, have grown, as she has a
hand in nearly every aspect of the
school’s operations as its executive
vice president. She also is OTC’s
acting chief financial officer.
OTC has grown to 256 employees
from 50 when Ms. Dillon arrived at
the school, and its enrollment has
spiked to 1,500 from 250. The
school reported 2010 revenues of
$19.55 million. The school in 2009
opened its PowerSport Institute in
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De Nora Tech Inc. ◆
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FlyAirExcellence.com
E
lizabeth Donaldson has
been busy.
As if navigating De Nora
Tech Inc. through the economic downturn wasn’t enough,
Ms. Donaldson also has contended
with developing a new reporting
structure to accommodate the
company’s Italian-based parent
company, Industrie De Nora.
That company acquired De Nora
— a Chardon firm that specializes
in electrochemical technologies —
in 2005. Since then, Ms. Donaldson,
De Nora’s manager of administration, finance and control, has created
North Randall.
As the school has grown,
Ms. Dillon has lowered its
bad debt percentage, from
2.24% to 1%, by improving
tuition collection methods.
She also collaborates
closely with OTC accountants and banks to ensure
compliance with the Accrediting
Commission of Career Schools and
Colleges, which oversees OTC and
other colleges like it.
Ms. Dillon over the last two
years has upgraded the school’s
payroll system to one that features
more employee-friendly access,
and the school also has benefited
from the implementation of online
banking and electronic funds
transfer payments.
OTC and Ms. Dillon have tightened budgetary processes, “in an
attempt to keep spending focused
on items that will benefit the
education of our students,” the
nomination said. This move has
“allowed the college to have a
spending guideline to follow in
order to make sure the college is
properly reinvesting in itself.”
Ms. Dillon played a key role in
the expansion of the school’s
bookstore, which has helped the
school’s revenues grow, and in
developing an online e-commerce
presence for the store. The school
in 2009 was named the school of
the year by Tomorrow’s Technician
magazine and toolmaker Chicago
Pneumatic.
“Ms. Dillon has had a very positive
impact in putting OTC on the map,”
the nomination said. “Without her
expertise and financial insight, the
school would not be able to expand
and embark on its continued growth.”
a financial reporting system that meets the United
States’ Generally Accepted
Accounting Principles and
the format required by De
Nora’s new parent.
She also designed a new
annual budget process and
sales and costing systems
as required by the Italian company.
“(Her) disciplined and flexible
leadership through these challenges have allowed De Nora to
succeed in (its) mission to be the
industry leader in providing innovative technologies to customers
worldwide,” the nomination said.
She served as the leader for the
management and implementation
of a global transfer pricing project,
which organized all De Nora companies — in Germany, Singapore,
India, China and Brazil, in addition
to the United States and Italy —
under common policies acceptable to those countries’ respective
tax authorities.
Ms. Donaldson also implemented
an inventory optimization initiative
and advised the company’s man-
agement team on the
imminent relocation of its
U.S. headquarters, from
Chardon to Concord; that
move will be completed by
the end of this year.
Through those measures,
De Nora has seen revenue
grow 10% since the acquisition, and it remained profitable
through the downturn thanks to a
cost-reduction program devised by
Ms. Donaldson.
Ms. Donaldson, who oversees a
financial and information technology staff of 10, also has remade
the company’s medical plan,
avoiding what the nomination form
estimated as a 30% cost increase,
and also developed a new deferred
compensation plan that resulted in
“significant” cost savings. The company employs 415 and reported 2010
global revenues of $210 million.
“Beth possesses many of the
attributes required to be a successful
CFO, including strong communication skills, confidence (and a)
deep understanding of the business,” the nomination said.
JUDGE’S PROFILE
Guy Fabe
Tax partner ◆ PricewaterhouseCoopers LLP
Guy Fabe’s focus is primarily on
publicly held, multinational companies.
He was admitted to the partnership
in July 2006 and has 18 years of
experience specializing in areas such
as accounting methods, consolidated
returns, corporate restructurings,
accounting for income taxes and
foreign tax credit planning.
Mr. Fabe joined PwC in 2002. Prior
to that, he spent more than eight
years at Arthur Andersen.
He has extensive experience in the
industrial products and automotive
industries.
Mr. Fabe’s
leadership roles
in the business
and civic communities include
serving on the
boards of directors for the Association
for Corporate Growth, Cleveland
chapter; Cleveland Leadership
Center; and the Golden Age Centers
of Greater Cleveland.
He received his undergraduate
degree from John Carroll University
and his master’s degree from the
University of Illinois.
• Investment Management
and Advisory Services
• Tax and Estate Planning
• Family Office Services
• Family Business
Succession Consulting
9132 Strada Place, 2nd Floor
Naples, Florida 34108
(239) 596-9080
198 W. Portage Trail, Suite 105
Cuyahoga Falls, Ohio 44223
(330) 923-3038
www.willowstreetadvisors.com
20111017-NEWS--23-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
GALE W. FISK
PAST CFO OF THE YEAR HONOREES
Greater Cleveland Regional Transit Authority
◆ Cleveland
2010
I
f the budget-cutters in
Washington, D.C., are
looking for some guidance, they might want
to call Gale W. Fisk.
As the weak economy
pushed down the Cuyahoga
County tax revenues that
fuel RTA, Mr. Fisk and his
team at the transit agency’s Office
of Management and Budget had to
come up with nearly $18 million in
operational cuts in 2010 and $30
million in overall expense reductions. In total, expenses that year
were cut 12.6% to $208 million
from $238 million in 2009. The $208
million figure brought expenses to
2004 levels.
Mr. Fisk also reduced RTA’s
capital improvement plan by more
than half, to $53 million a year
from $118 million per year, to
accommodate new fiscal realities.
The cost-cutting was aided
significantly by the creation and
implementation of TransitStat, a
management program that uses
advanced statistics to measure
operational efficiency at RTA. The
program is similar to Six Sigma or
Total Quality Management lean
management programs in that it
offers a data-driven approach to
identifying cost savings throughout
the organization. RTA used it to
find big savings in areas including
overtime and inventory expenses.
According to Mr. Fisk’s CFO of
the Year nomination, he
also “put his financial
expertise into other
matters, including process
improvements and implementing a fuel-hedging
program for RTA.” By
hedging RTA’s fuel purchases in the commodities
market, Mr. Fisk helped the agency
reduce 2010 diesel costs by well
more than half, or about $10
million, to $7.4 million.
Through these measures and
others, Mr. Fisk helped RTA
achieve a 2010 year-end balance of
$20 million, up from $2.9 million
in 2009. With the $20 million yearend balance, RTA for the first time
since 1990 met its goal of having a
30-day end-of-year balance.
Mr. Fisk is a graduate of the
U.S. Coast Guard Academy, and
he has an MBA from George
Washington University. One of
several positions he held with the
Coast Guard was as finance
director for the Great Lakes Region. In his final assignment, Mr.
Fisk directed the activation of 300
Coast Guard reservists to Desert
Storm in 1991.
Mr. Fisk coached the Bay High
School girl’s soccer team for 16
years, leading them to state championships in 1999 and 2002. Mr.
Fisk is an assistant coach to his
daughter on his granddaughter’s
U10 travel soccer team.
■ Laurie Brlas, Cliffs Natural
Resources Inc. (Large public company)
■ Robert G. O’Brien, Forest City
Enterprises Inc. (Medium public company)
■ Mark R. Widmar, GrafTech
International Ltd. (Small public
company)
■ Gregory Robinson, Safeguard
Properties LLC (Large private company)
■ Andrew Tanner, The NRP
Group (Medium private company)
■ Frank Mercuri, Vocon (Small
private company)
■ Michael A. Szubski, University
Hospitals (Large nonprofit)
■ Craig Foltin, Cuyahoga Community College (Medium nonprofit)
■ Brian S. Kenyon, The Rock
and Roll Hall of Fame and Museum
Inc. (Small nonprofit)
2009
■ Richard C. Ebner, Liberty
Bank (Small private company)
■ Rick Coan, Garick LLC
(Medium private company)
■ Steven C. Glass, Cleveland
Clinic (Nonprofit global hospital)
■ John D. Grampa, Brush Engineered Materials Inc. (Medium public
company)
■ Yvette M. Ittu, Greater Cleveland Partnership (Nonprofit civic and
community)
■ Fredric “Fritz” Kohmann,
Shearer’s Foods Inc. (Large private
company)
FILE PHOTO/JASON MILLER
Cliffs Natural Resources CFO Laurie
Brlas (center) with Crain’s publisher
Brian Tucker and Marsh’s Bill Paul.
■ Julie McGraw, National Interstate Corp. (Small public company)
■ C. Michael Rutherford,
Summa Health System (Nonprofit
regional hospital)
■ John P. Sesek, Positive
Education Program (Nonprofit human
services)
■ Stephen J. Smith, American
Greetings Corp. (Large public company)
2008
■ Bonnie Barrett, Cleveland
Foodbank (Nonprofit, human
services)
■ Tom Browne, Bellefaire/
Wingspan Care Group (Nonprofit,
health care)
■ Jenniffer Deckard, Fairmount
Minerals (Large private company)
■ Mark Eisele, Applied Industrial
Technologies (Medium public company)
■ John Flanagan, Howley Bread
(Small private company)
■ Patricia Gaul, PlayhouseSquare Foundation (Nonprofit, arts
and culture)
■ Ware H. Grove, CBiz (Small
public company)
■ Michael Headen, United Way
of Greater Cleveland (Nonprofit, community service)
■ Karen D. Melton, Kaufman
Container Co. (Medium private
company)
■ Tim Pistell, Parker Hannifin
Corp. (Large public company)
2007
■ David K. Creamer, Kent State
University (Nonprofit, educational)
■ Glenn A. Eisenberg, The
Timken Co. (Medium public company)
■ Richard H. Fearon, Eaton
Corp. (Large public company)
■ Richard L. Garcia, Wastequip
Inc. (Medium private company)
■ Craig Kaiser, YMCA of Greater
Cleveland (Nonprofit, social services)
■ J.T. Mullen, The Cleveland
Foundation (Nonprofit, charitable)
■ Frank Roddy, Swagelok Co.
(Large private company)
■ Kevin V. Roberts, University
Hospitals Health System (Nonprofit,
medical)
■ Carole Sanderson, Herschman
Architects Inc. (Small private company)
■ Thomas G. Smith, Forest City
Enterprises Inc. (Small public company)
Dennis Jancsy
Dennis, according to our calculations, you’re Column A, Row 1.
Congratulations on your nomination for CFO of the Year from your
friends and colleagues at Medical Mutual.
Health & Life Insurance
© 2011 Medical Mutual of Ohio
C-5
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10/12/2011
3:41 PM
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MARY ANN FREAS
Southwest Community Health System ◆
Middleburg Heights
M
ary Ann Freas’
duties at Southwest Community
Health System
start with numbers, but they
certainly don’t end there.
As would be expected of
a hospital system CFO, Ms.
Freas is responsible for
“the revenue-cycle function” at
Southwest, which primarily includes
“the transparency and credibility
of the billing and collection
processes,” according to her CFO
of the Year nomination form. A
major — and growing — component
of that is establishing policies for
financial assistance to uninsured
and underinsured patients. She’s
also responsible for capital and
operating expenditure policies.
Since Ms. Freas joined Southwest
in 2008, the system’s number of
“days-cash-on-hand” has
risen from 160 days to 232
days as of mid-2011, the
nomination states. In
turn, Southwest “has gone
from an average breakeven operating margin to
a consistent 3% to 4% for
the past three years.” One
measure of what she does: In handling Southwest’s $70 million debt
portfolio, she “took advantage of
refinancing opportunities … that
have created over $600,000 in
annual savings in interest expense.”
Southwest counts on Ms. Freas,
a John Carroll University graduate,
to play an active role in business
development initiatives.
The nomination states she has
“guided senior leadership through
formal business planning to: open
a new geriatric psychiatry nursing
OCTOBER 17 - 23, 2011
unit; acquire state-of-the-art linear
accelerator equipment used in radiation treatment of oncology patients;
construct a freestanding 24/7 emergency services facility in Brunswick;
and implement major information
technology applications to ensure
patient safety, satisfaction and
quality and efficiency of care.”
She also has been “instrumental
in enhancing the ‘Leadership Evaluation Management’ system so that
it includes relevant, quantifiable
metrics to be used in evaluating the
performance of (Southwest’s)
management team.”
Ms. Freas shares her expertise
and talent outside Southwest.
For instance, she serves as the
vice president of the board of
trustees for the Ronald McDonald
House of Cleveland. As that organization has been working on a
strategic plan, Ms. Freas has provided financial forecasting services
and has connected Ronald McDonald House officials with consultants
to advise the organization on optimal
strategies for investing funds.
ATTEND THE CFO OF THE YEAR AWARDS
Crain’s Cleveland Business will hold
its fifth-annual CFO of the Year
Awards next Tuesday, Oct. 25, at
LaCentre Conference and Banquet
Facility in Westlake.
At the event, presented by Marsh,
networking opportunities will be followed by the announcement of this
year’s winners.
For more information or to
register, visit www.CrainsCleveland
.com/CFOTIX.
marsh.com
BETTY J. GOODMAN
Vocational Guidance Services ◆ Cleveland
O
ver the past 20
years, Vocational
Guidance Services
has doubled the
amount of revenue it
brings in for its core
mission: serving people
with disabilities and other
barriers to employment.
All the while, the Cleveland
nonprofit’s finance department
has remained the same size.
For both of those achievements,
Betty Goodman deserves a lot of
credit.
Ms. Goodman has spent more
than 32 years at Vocational Guidance Services, including 12 years
as the nonprofit’s controller. She
has served as chief financial officer
since June.
“It’s a big job — to be responsible
for the financial management of
an agency upon which almost a
thousand individuals with disabilities
and other barriers to employment
rely for a weekly paycheck,” the
nomination said. “And Betty
Goodman does that job expertly.”
Ms. Goodman’s lengthy tenure
helped her develop a base of
knowledge related to both the
nonprofit’s internal fiscal matters
and compliance issues involving
federal contracts and grants, the
nomination said.
That knowledge not only has
led her to teach and train others in
the nonprofit and for-profit sector,
but it also has helped Vocational
Guidance Services remain in
compliance with federal grant
guidelines for 30 consecutive years.
Ms. Goodman has
played a key role in securing
additional funding that
has allowed the organization to create thousands of
jobs for people with barriers
to employment, the nomination said. For instance, she was
singly responsible for making
Vocational Guidance Services a
sponsor of the Ohio Department of
Education’s Summer Food Service
Program, which provides meals to
low-income children at 13 locations
during the summer. People with
disabilities prepare and package
the food.
Ms. Goodman also worked to
keep her finance department
efficient as Vocational Guidance
Services grew. Over the past three
years, she introduced software that
has allowed both the accounts
payable and accounts receivable
teams to use much less paper. She
has authored financial policies to
help the organization conform to
Generally Accepted Accounting
Principles and has worked to teach
managers in other departments
how to use financial data to analyze
their own lines of business.
The Streetsboro resident is
active with several organizations.
For instance, she is president of
the Shiloh Missionary Ministry at
the historic Shiloh Baptist Church,
and she supports Kincaid Kindred
Spirits, an advocacy group for
minorities with sickle cell disease.
Join the Health &
Wellness Crusade
MARSH SALUTES THE CFO OF THE YEAR
NOMINEES, FINALISTS AND WINNERS
We realize that it is no small accomplishment to be considered for this award. We
congratulate you on your outstanding performance as a corporate financial leader.
1VCMJD4RVBSFt$MFWFMBOE0)t
Copyright © 2011 Marsh Inc. All rights reserved. USDG1671
Partnering for impactSM
Marsh is one of the Marsh & McLennan Companies, together
with Guy Carpenter, Mercer, and Oliver Wyman.
Participate in the 5th Annual Northern
Ohio Employer Wellness Survey and get a
report of the latest trends in worksite wellness in Northern
Ohio. Go to www.gallagherbenefits.com/cleveland to
complete the 10-minute survey. Contact Alison Muth for
more information at 216.377.2595 or [email protected].
20111017-NEWS--25-NAT-CCI-CL_--
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2:13 PM
Page 1
OCTOBER 17 - 23, 2011
DAVE HAMRICK DENNIS JANCSY
InfoCision Management Medical Mutual of Ohio ◆ Cleveland
Corp. ◆ Akron
D
ave Hamrick has been
such an entrusted asset in
the InfoCision Management Corp. empire, even
Gary Taylor’s family enlisted the
CFO as a personal financial adviser
when an illness had befallen the
company
founder two
years ago.
Mr. Hamrick’s
financial acumen
afforded the
Taylor family the
time to concentrate on critical
family issues
without putting their business and
financial well-being at risk.
He “not only guided InfoCision
through the narrow channel to more
stable financial waters, but also
took on the additional responsibility
for the financial and operational
management of several outside
businesses owned by the Taylor
family,” the nomination said. “Dave
continues to be a tireless and passionate worker who always has the
best interest of the company first.”
Since Mr. Hamrick joined the
Akron-based call center operation
in 2007, he has upgraded company
financial systems and procedures,
minimized expenses and has
strengthened his department by
realigning responsibilities and
making key hires.
Some of the fiscal initiatives
accomplished under his watch:
■ revamping the operation’s tax
reporting process by applying IRS
guidelines and rules, helping the firm
realize millions of dollars in tax
benefits;
■ restructuring a complex $37
million corporate financing package
that resulted in about $650,000 in
annual savings and increasing working
capital availability by $2 million;
■ negotiating a $6 million purchase
and improvements loan for InfoCision’s expansion in Green, and
coordinating a $3.2 million loan for
the leasehold improvements to two
corporate campus buildings; and
■ helping spearhead a complete
business succession and continuity
plan to ensure business continuance
and success.
“His contributions have helped
InfoCision maximize profits and
reduce expenses,” the nomination
said.
Mr. Hamrick’s cost-paring efforts
stem from negotiating contracts with
vendors rather than slashing employee benefits; in fact, the operation
has continued to implement annual
pay hikes and benefit increases.
The 4,000-employee company posted
revenues in 2010 of $173 million.
“Dave has worked very closely with
me on numerous initiatives including
improved financial reporting and
analysis, cost containment and
meticulous analysis of business
opportunities that will enable InfoCision to sustain double-digit
growth,” said Mike Van Scyoc, chief
strategy officer, in the nomination.
Mr. Hamrick serves as treasurer
of the call center operator’s board
of directors. He also is a member of
InfoCision’s executive committee.
Mr. Hamrick serves as head
coach for Ohio Storm Baseball,
assistant youth wrestling coach for
North Akron Wrestling Club, assistant youth football coach for the
City of Green and is an adjunct
teacher at the University of Akron.
D
ennis Jancsy
joined Medical
Mutual as executive vice president and CFO with more
than 30 years of financial
experience in health care
ranging from working at
Ernst & Young to CFO of
Akron Children’s Hospital.
That career positioned him to
make a profound impact on the
health insurer in just two years.
Beyond the expected role of
bulldog over the outfit’s finances,
associates say he has invested in
training his direct reports in the
finance department.
He has introduced new investing
techniques that will help
the insurer with 2010 revenue of $3 billion obtain
better yields. This has
helped it cope with the
roller coaster represented
by the 2008 recession and
its aftershocks as well as
the looming challenge of
federal health care reform.
Mr. Jancsy is a financial executive who brings creativity, skills as
a team player and strength as a
leader to this job, the nomination
said of the former health care
industry segment leader for Ernst
& Young’s national audit group in
Cleveland. Both his bachelor’s and
master’s degrees in business admin-
istration are from the University of
Massachusetts.
“Dennis joined Medical Mutual
two years ago and brought strong
technical knowledge and creativity
to the finance function,” the nomination said. “He challenged the
status quo and has led important
change throughout the organization
while being regarded as the ultimate
team player and creating a sense of
confidence among our board and
senior leadership.”
Mr. Jancsy also knows how to have
fun and do some good. He was
instrumental in helping downtown
Cleveland serve as a scene for the
movie, “The Avengers.”
After the movie studio paid the
insurer $20,000 for using its Rose
Building on East Ninth Street for
part of the filming, Mr. Jancsy saw
it as a chance to give back. As a
result, the insurer donated the
C-7
money to the Greater Cleveland Film
Commission to help it attract more
movie productions to the region,
helping diversify its economy.
He also has served as an adjunct
professor in health care finance at
Cleveland State University, and he
helps safeguard finances as a board
member of Old Trail School in Bath
although his own children are past
school age.
He belongs to the Healthcare
Financial Management Association, American Institute of Public
Accountants and the Ohio Society
of Certified Public Accountants.
He also has served on the audit
committee of the Catholic Diocese
of Cleveland Foundation.
Colleagues nominated Mr. Jancsy
over his own objection.
“Thank you,” his nomination said
he told them, “but I believe, ‘He who
exalts himself shall be humbled.’”
Proof that good leadership
counts.
Congratulations Mark T. Clark
We’re proud to recognize our own Executive Vice President & Chief
Financial Officer, Mark T. Clark, as a finalist for CFO of the Year.
20111017-NEWS--26-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
RICHARD “DUKE” JANKURA
ELAINE KAPUSTA
JumpStart Inc. ◆ Cleveland
Dots LLC ◆ Glenwillow
R
E
ichard “Duke”
Jankura brings top
level corporate
experience and a
Marine’s “first-to-fight”
discipline to undertaking
his post as CFO at the
JumpStart Inc. nonprofit
that helps ready early stage
companies for venture capital
investments.
He leads the finance, information
technology and administration
team at the $14 million nonprofit
where he instituted the financial
systems after JumpStart’s 2004
founding.
Those systems have a twist
because the government and nonprofit foundation sources of its
funding require trustworthy data
to gauge the effectiveness of
investments. He also managed
JumpStart’s organizational growth
for seven years and supervised
details from ensuring regulatory
compliance to helping early stage
firms find funding.
At JumpStart, he has a staff of
three direct reports while earlier in
his career he served as controller
of the McDonald Investments
stock brokerage, both as an independent company and after it
became a subsidiary of KeyCorp.
At the brokerage and investment
banking house he managed a staff
of five financial professionals. At
McDonald he led the automation
of its accounting system in the
1990s, standardized incentive
programs and ran the challenging
financial side of going through
multiple mergers. That background
equipped him to organize JumpStart
in 2004 when it was created by the
merger of four predecessor outfits.
Mr. Jankura is a veteran of the
U.S. Marine Corps, where
he was a first lieutenant in
logistics. He continues to
support the Marines
today. He attends afterhours events in uniform,
the nomination said, and
his service is as much a
part of who he is as his
MBA and undergraduate business
degree from the University of Hartford in Connecticut.
“He’s not just a financial pro.
Duke is the voice of positivity 100%
of the time within the organization,
has a great sense of humor and
impeccable ethics,” the nomination
said. “He’s the first to compliment a
team member or pass along
another’s achievement to the entire
staff. No job is too small for Duke
either. He’ll grab a broom and sweep
up after an event without being
asked, even if he was the one giving
the keynote presentation. He’s a true
team player.”
A product of Leadership Cleveland, Mr. Jankura served on the
board of Old Brooklyn Community
Development Corp., is a past
president of Young Friends of the
Cleveland Museum of Art and is
treasurer of the Institute of Creative
Leadership, a nonprofit that provides experience-based leadership
training programs to area business
and other groups.
At the community development
level, he’s helped write strategic
plans. He also helped organize a
“Main Street” initiative, a state and
national program that assists
marketing and development of
aging commercial districts.
Mr. Jankura and his wife, Janet,
have two young children. Mr.
Jankura coaches his son’s baseball
team.
laine Kapusta is
more than a CFO
for a women’s fashion retailer with
more than 400 stores
across the country. She’s
an instrumental component
of Dots LLC’s journey to
becoming a national brand.
Ms. Kapusta joined Dots in 1994
as controller, and her determination
to take the company to the next
level helped her to climb the
corporate ladder, ultimately
becoming vice president and chief
financial officer for the company
in August 2007.
In fact, Ms. Kapusta was the
chief architect of Dots’ sale to the
New York private equity firm of
Irving Place Capital last January,
which is expected to allow the
retailer to open 600 more stores
nationwide and lead to a potential
public offering of its stock.
MICHAEL E. MAYHER
Lakeland Community College ◆ Kirtland
M
ichael E. Mayher
not only brings
insight and
innovation to
Lakeland Community
College as its top business
officer, he contributes to the
state’s entire higher education community as well.
For one, Mr. Mayher, who serves
as Lakeland’s senior vice president
for administrative services and
treasurer, co-chaired a state task
force charged with developing
energy conservation goals for public
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She has been a leader
throughout the Dots organization and has taken on
a number of responsibilities, such as benefits
planning, workers
compensation, liability
issues and the company’s
budgeting and planning
process. She also was instrumental
in Dots’ opening a new distribution
center and corporate headquarters
in 2009.
“She goes above and beyond her
role in our company and leads her
team to attain the highest caliber
of results,” the nomination said.
Simply put, Ms. Kapusta is a
broad-based business leader,
according to the nomination, and
she brings value to all aspects of
the business.
“Elaine’s direct reports aspire to
achieve the leadership qualities
demonstrated by her each day.
Taft Stettinius & Hollister LLP
www.taftlaw.com
200 Public Square, Suite 3500, Cleveland, OH 44114-2302 U P: (216) 241-2838
Business and Finance U Litigation U Labor and Employment U Business Restructuring, Bankruptcy and Creditor Rights
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colleges and universities
— something that prompted
several higher education
institutions across the
state to invest millions in
going green.
He also was instrumental
in developing Lakeland’s
20-year energy master
plan, which serves as a road map to
reduce the college’s direct and indirect greenhouse gas emissions by
60%. Under his leadership, the
college also initiated a $6.3 million
energy conservation project in
2008, which translates to more than
$500,000 in annual energy savings.
“Lakeland’s energy savings project has been identified as the best
practice example and benchmark
for post-secondary institutions
throughout the state and country,”
the nomination said.
Mr. Mayher consistently thinks
outside the box and embraces
innovative ideas to cut costs while
at the same time securing the best
services. He oversees the departments
of business services, administrative
They are impressed by her ability
to think on her feet and quickly
analyze difficult situations, asking
the right questions to drive
results,” the nomination said. “She
pushes them to the next level of
their abilities by communicating
high expectations while supporting
their efforts and removing the
barriers to success.”
Prior to her work at Dots, Ms.
Kapusta was at Ernst & Young,
where she worked to improve
profitability through solid budgeting,
staffing and progress monitoring.
She rose to the rank of senior
manager in her 11-year career at
Ernst & Young.
Ms. Kapusta, a graduate of John
Carroll University, is married with
three children and is actively
involved in their extracurricular
activities, such as show choir,
cheerleading and the drama club.
Somehow, she manages to squeeze
in time to volunteer at the Cleveland
Food Bank.
“Her inherent devotion and passion for success allows her to lead
by example,” the nomination said.
technologies and facilities management, three of the largest departments
at the college.
“He encourages his managers to
investigate and propose new ideas
for efficiency and sustainability,
and is always open to suggestions,”
He led the way for Lakeland and
nearby school districts to save
money on insurance in an effort to
band together to gain more leverage
in price negotiations.
Mr. Mayher currently is serving
as the chairman for the Ohio Association of Community College’s
risk management task force to
implement a group risk management and procurement program.
“Mike Mayher is an outstanding
business officer and brings insight
and innovation not only to Lakeland
Community College, but also to other
institutions of higher learning in
Ohio and across the nation,” the
nomination said.
Mr. Mayher is involved in several
nonprofit efforts on the local level.
For example, he serves on the board
of trustees for the Lake County YMCA
and volunteers for the United Way.
Mr. Mayher is married with one
son. He is a graduate of Cleveland
State University.
20111017-NEWS--27-NAT-CCI-CL_--
10/13/2011
2:17 PM
Page 1
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20111017-NEWS--28-NAT-CCI-CL_--
C-10
10/13/2011
2:14 PM
Page 1
SCOTT A. MORGAN
Cuyahoga County Public Library ◆ Parma
A
s keeper of the
books for Cuyahoga County Public
Library, Scott A.
Morgan has made his mark.
Mr. Morgan, the library’s
finance director since 2003,
assisted in the successful
passage of an operating
levy for the library, and he made
contributions to the library’s longrange financial plan and capital
plan that were essential in securing
a AAA bond rating in 2010, the
nomination said.
That rating enabled the library
to sell $75 million in notes
at a 3.79% interest rate to
fund the library’s capital
plan, which will reduce
the library’s dependence
on state funding and allow
it to live within its 2.5-mill
operating levy. (The
library’s levy is the lowest
of nine library systems in Cuyahoga
County, according to the nomination.)
Additionally, Mr. Morgan has
been instrumental in securing new
revenues through grant funding
and instituting new revenue-
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Jewish Federation
OF CLEVELAND
OCTOBER 17 - 23, 2011
generating services, such as passport processing and photo services,
at a time when public library
funding is significantly reduced.
Described as a man of “infectious”
spirit, dedication and professionalism, Mr. Morgan this year assumed
the additional responsibility for
directing the library’s facilities
operations.
Now, he is operations director at
a time when the library is engaged
in the most significant capital program in its 87-year history. Under
the capital plan, five to six new
branch libraries are to be built —
the first major public investments
in some communities in decades.
“Scott’s generous spirit and
support for new initiatives have
played an important role in the
success of Cuyahoga County Public
Library, which has been independently rated the nation’s best large
CHRIS
PASCARELLA
Enprotech Corp. ◆
Cleveland
C
hris Pascarella has had his
hand in shaping the Enprotech Corp. that exists today.
In his time as CFO for the
Cleveland company, he has led
initiatives that
closed one division, divested
two companies,
discontinued
major product
lines and eliminated more than
30% of the
company’s head
count as part of restructuring plans.
Enprotech is a provider of services
and products for a wide range of
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library for two consecutive years,”
All the while, Mr. Morgan is an
open book: His commitment to
transparency in government and
responsible use of public funds has
earned the library recognition for
accountability in financial reporting.
A University of Akron graduate,
Mr. Morgan previously worked for
two other libraries, more recently
as finance director for Akron-Summit County Public Library and also
as clerk/treasurer from 1986 to 1995
for Stark County District Library.
Mr. Morgan has held nonprofit
leadership roles, too: He is past
president and vice president of
both the American Cancer Society,
Stark County chapter, and the Battered Women’s Shelter of Summit
and Medina counties, as well as a
past board member of other organizations.
industries including automotive,
beverage and steel.
Described as an “extremely
talented and passionate individual,”
Mr. Pascarella has led the organization to generate additional revenue
and reduce costs. Since 2006, he’s
managed a $20 million reduction in
working capital requirements, which
continue to decline on an annual
basis.
“He has the proven ability to
create measurable change that
directly impacts profitability,” the
nomination said.
Mr. Pascarella achieved aggressive
earning targets for 2007, 2008 and
2010, and developed and implemented a new and consistent financial statement reporting, budgeting
process and forecasting model to
enable more accurate information
for decision making. The company
is on track to meet or exceed its
financial plan for 2011.
“Leadership is what sets Chris
apart from other CFOs,” the nomination said, noting that Mr. Pascarella
is not only the company’s top financial person, but a strong supporter
of the company’s overall mission
and a promoter of its culture.
In fact, in 2011, Mr. Pascarella
was one of 30 senior executives
selected to participate in the Global
Leadership Program, a 12-day
intensive leadership and networking
activity held in Japan and sponsored
by Enprotech’s international parent
company, ITOCHU Corp.
JUDGE’S
PROFILE
J.T. Mullen
Chief investment strategist ◆
Fairport Asset Management
J.T. Mullen joined Fairport Asset
Management in 2011, bringing more
than 30 years of experience as an
investment and
finance
professional.
As chief
investment
strategist, he
provides
leadership
and strategic
oversight to
Fairport’s Investment Committee.
Prior to joining Fairport, Mr.
Mullen was senior vice president
and CFO at The Cleveland Foundation. During his 23-year tenure, he
crafted an investment philosophy
that led to substantial growth of the
foundation’s endowment — from
$400 million to $1.8 billion.
Earlier in his career, Mr. Mullen
was a manager with Arthur Young &
Company and also with the Cuyahoga
County Board of Commissioners.
He earned his bachelor’s degree
from Cleveland State University.
His current involvement includes
the investment committees of United Way of Greater Cleveland and
the Catholic Diocese of Cleveland
Foundation.
Mr. Mullen and his wife, Mary,
have five children and four grandchildren.
Mr. Pascarella and his wife,
Severine, have three young children.
Mr. Pascarella coaches his children
in the North Royalton munchkin
soccer program.
A graduate of Hiram College, Kent
State University and Groupe ESC in
Rennes, France, Mr. Pascarella now
is in his third term on the Lawrence
School board, for which he previously served as treasurer. Lawrence
School is an independent, coeducational day school serving students
with learning differences and attention deficits.
Additionally, Mr. Pascarella is a
member of the advisory council at
Saint Albert the Great School in
North Royalton.
20111017-NEWS--29-NAT-CCI-CL_--
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2:15 PM
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OCTOBER 17 - 23, 2011
C-11
VINCENT PETRELLA
The Lincoln Electric Co. ◆ Cleveland
T
hanks to the fiscal
management of
Vincent Petrella,
The Lincoln
Electric Co. has been able
to implement its strategic
and global growth plans in
an effective manner.
“Under Vince Petrella’s
leadership, Lincoln has maintained an outstanding financial
profile, a stellar reporting record
and an excellent investor relations
program during a time of substantial
growth in the company’s profits
and sales,” the nomination said.
Mr. Petrella was elected CFO of
Lincoln in 2004. He initially joined
the company in 1995 as manager
of internal audit, becoming corporate controller in 1997 and being
elected an officer in 2001. Prior to
joining Lincoln, Mr. Petrella
worked for 13 years for PricewaterhouseCoopers LLP.
“Under Mr. Petrella’s management
and direction, Lincoln has put in
place a compelling strategy to
maintain a strong balance sheet
and performance,” the nomination
said. “The company always emphasizes that it is investing its strong
cash flow in profitable growth and
global expansion and shows that
the company is earning a solid
return via its organic growth.”
Additionally, Mr. Petrella, a 1982
graduate of Baldwin-Wallace
College, is lauded for his work in
financial reporting and compli-
ance, as well as his
creation of an investor
relations program that has
become more professional
and proactive.
“Under his direction,
Lincoln has achieved a
high level of professionalism,
transparency and sophistication in its financial affairs,” the
nomination said. “As a result of
smart financial management under
Mr. Petrella’s leadership, Lincoln
has avoided restatements and has
a good system and process in place
to continue providing financial
reports of the utmost integrity.”
The company’s strong financial
performance and proactive
investor relations have aided in it
receiving positive media coverage.
(MSNBC’s Jim Cramer has called
Lincoln one of the nation’s
premier industrial companies.)
“Feedback from institutional
investors states that accessibility to
senior management and credibility
of the CFO are the top factors in a
successful corporate investor
relations program,” the nomination said. “Mr. Petrella’s record in
this area is exemplary.”
In addition to his work in guiding
the fiscal strategies of the company,
Mr. Petrella also is known for
acquiring and growing talent. He
and his staff also have played a lead
role in the company’s conversion
to defined contribution retirement
plans.
MICHAEL PRESSNELL
Clark-Reliance Corp. ◆ Strongsville
N
umbers can do a
lot to represent
the impact
Michael Pressnell
has had on Clark-Reliance.
But he certainly isn’t
obsessed with numbers
themselves. Instead, Mr.
Pressnell wants to know
about the factors that influence the
numbers.
“He has a passion for understanding what drives the numbers
he reports and in his quest to understand these costs, he is very often
designing the process to reduce
the costs,” the nomination said.
For instance, Mr. Pressnell
worked with insurance brokers to
reduce Clark-Reliance’s annual
premiums to $350,000 from $1.5
million, all while increasing coverage
for the company, which makes
products for the power generation,
petroleum, refining and chemical
processing industries.
Plus, he played a key role in
helping Clark-Reliance control
costs throughout the recession. As
a result, the company laid off only
three people and remained profitable, even though sales fell 16%.
Mr. Pressnell also is known as a
strong collaborator, the nomination
said.
For example, Mr. Pressnell works
closely with other department heads, helping them
manage the day-to-day
operations of the business
and providing them the
information they need to
hold down costs, according
to the nomination. Plus,
every morning, he stops in
the manufacturing department
head’s office to go over the day and
offer help as needed, the nomination said. He helps complete due
diligence on acquisitions, too.
Mr. Pressnell graduated from
Bowling Green State University
with a bachelor’s degree in business administration and afterward
spent 15 years auditing middle
market companies for Deloitte &
Touche. He spent 15 months as
CFO of the Carbone family’s real
estate group before joining ClarkReliance in April 2001. He also
does work for other businesses
owned by the Figgie family.
Outside of work, Mr. Pressnell is
active with the Living Word
Lutheran Church in Medina,
where he is treasurer.
“In addition to being a great
CFO, Mike is truly one of the good
guys who has made a real impact
on Clark-Reliance and on everything
else he touches,” the nomination
said.
Congratulations to NineSigma’s CFO,
Bill Chorba, and to all of the 2011
CFO of the Year finalists.
Thank you, Bill, for your
financial expertise and
outstanding leadership.
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Celebrating
Two Decades
of Rising
Business Stars!
Monday, November 21
5:30 p.m. - 8:30 p.m. at Landerhaven
Honoree & Ticket Information:
www.CrainsCleveland.com/40tix
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UPCOMING EVENTS
Crain’s on Nov. 3 will continue its
2011 Ideas at Dawn business breakfast series with a panel discussion
that will update attendees on best
practices for entering international
markets.
The panel is sponsored by Charter
One, Benesch Friedlander, Coplan &
Aronoff and ideastream’s Changing
Gears. For more information and to
register for the event, visit
www.CrainsCleveland.com/breakfast.
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20111017-NEWS--30-NAT-CCI-CL_--
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4:55 PM
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OCTOBER 17 - 23, 2011
BARRY REIS
Jewish Federation of Cleveland ◆ Beachwood
Y
ou might think
running money for
the Jewish Federation is not the big
leagues — you know,
nothing compared with
managing the coffers of a
sizable company, right?
Wrong.
Barry Reis has $1.9 billion he has
to manage for the big nonprofit. It
might be partially his own fault he
has so much responsibility,
though. After all, the federation’s
accounts only had about $300
million before he came on board
in 1984. It’s little wonder he was
named CFO by 1991.
“Barry Reis is a gifted financial
professional who has provided
excellent financial leadership to
the Jewish Federation of Cleveland
during his 27 years as it has grown
to include $1.9 billion in assets,”
A graduate of Cleveland Heights
High and Miami University, Mr.
Reis cut his accounting teeth at
Arthur Anderson, but spent only
two years there before joining the
Jewish Federation.
And, while a corporate CFO
might only have to worry about his
CEO and board of directors, Mr.
Reis has far more constituents and
benefactors to keep happy. The
federation has more than 45
supporting foundations, along
with more than 900 donor advised
funds and 43 trusts, all of which
Mr. Reis continually monitors,
evaluates and works to improve.
The federation’s pooled investment funds are available to other
Jewish organizations
around Cleveland and
it has $570 million in
pooled money, from
approximately 40 participating agencies, that it
also invests under Mr.
Reis’ direction.
“Through hands-on
involvement, he has successfully
cultivated close relationships with
agency leadership and many
donors who trust and seek out his
financial expertise,” the nomination
said. “This trust has contributed to
the federation’s growth and success in the development of donor
advised funds and endowments.”
In addition to his role as CFO,
Mr. Reis is a senior vice president
and member of the Jewish Federation’s senior management team.
Mr. Reis leads a fiscal staff of 18,
and is responsible for the information technology and donor services
departments. He also manages the
Jewish Federation’s multi-employer
defined benefit pension plan,
which covers more than 3,000
employees at 15 agencies, and the
federation’s 403(b) defined contribution plan.
Of course, that’s just Mr. Reis’
day job. He spends the rest of his
time helping to raise four children
and working in the community.
Mr. Reis also has served on the
University Heights Finance Committee and is the treasurer of the
Maltz Museum of Jewish Heritage.
He donates his time to Park Synagogue and was a member of the
synagogue’s insurance, audit and
investment committees.
CAMERON C. RUBINO
OrthoHelix Surgical Designs Inc. ◆ Medina
C
ameron Rubino
has been CFO of
OrthoHelix Surgical
Designs Inc. since
May 2007, coming into the
role two years after the
company’s founding.
You know a CFO is doing
something right when he’s
nominated by an investor in the
company at which he works.
That’s the case with Mr. Rubino,
who was nominated by Wayne
Wallace of Mutual Capital Partners, an investor in OrthoHelix.
OrthoHelix makes highly specialized implants and instruments
that are used in reconstructive
surgery on the hands and feet.
“The company had a great product
but little in the way of procedures
and controls,” the nomination said.
“From the date Cameron started
all of that began to change and
thank the heavens it did because
with Cameron’s help the company
started a period of record growth,
growing monthly revenue from
$200,000 to $2,000,000 per month.
During Cameron’s tenure with
OSDI annual revenues have
increased in excess 2,567%.”
It should come as no surprise
that Mr. Rubino knows how to
keep an investor happy. After all,
before joining OrthoHelix in 2007
he himself was working the
investor angle, as CFO of the
Cleveland-based international
investment firm Crystal Ventures.
At OrthoHelix, though, he’s taken
on a whole new set of challenges
and succeeded in new
ways. He has led the company through stock offerings
and raised other equity
investments, totaling $30
million, to fuel the company’s growth. On top of
that, he’s secured debt,
including a $2 million term
loan and a $2.5 million line of
credit, as well — and has even
written two Third Frontier grant
applications netting the company
$1 million each.
“When Cameron joined, OSDI
was a true startup with just a couple of employees,” the nomination
said. “It was multiple years before
Cameron even had a payables/receivables clerk.”
Mr. Rubino proves that it’s often
the job of a CFO not just to manage
money, but to help make it — and
he works closely with the company’s
CEO, its board and even its sales
and product development teams to
set and execute financial strategy.
At home, he and his wife are
expecting their third child. He is
an advisory board member of the
George W. Daverio School of Accountancy at the University of
Akron.
“In my position, I meet and
know many CFOs,” Mr. Wallace
said in nominating Mr. Rubino. “If
you guys know of any that has this
type of track record I would love to
meet them. We have few real early
stage successes in Northeast Ohio
and Cameron is a major part of
one!”
20111017-NEWS--31-NAT-CCI-CL_--
10/13/2011
2:16 PM
Page 1
OCTOBER 17 - 23, 2011
SUSAN SUVAK
ROBERT TRABUCCO
Majestic Steel USA Inc. ◆ Pepper Pike
Sterling Jewelers Inc. ◆ Akron
S
L
usan Suvak’s title at
Majestic Steel USA
Inc., one of the
leading steel service
centers in the country
according to American
Metal Market newspaper, is
CFO. But her responsibilities
go well beyond the company’s financial well-being.
The 13-year company veteran’s
purview includes human resources,
in-house legal counsel, office
administration and the company’s
401(k) plan.
She also guides Majestic’s
philanthropic activities, and she’s
played a significant role in the
certification of the company’s
quality management standards.
“Susan brings an invaluable
balance between the realities of
the marketplace and the company’s
strong desire for growth,” said the
nomination. “Susan’s tactical- and
strategic-thinking skills allow
Majestic Steel to make prudent
business decisions which impact
today’s challenges, while continuing
to build the company’s future
growth capabilities.”
Ms. Suvak also helped expand
Majestic’s executive team of two to
a management structure that has
allowed the company to handle its
growth, and she was involved in
hiring a chief information officer, a
chief marketing officer, directors of
marketing, sales and enterprise risk
management, controller and inhouse legal counsel.
The graduate of Ohio State
University’s Max M. Fisher
College of Business joined
Majestic Steel in 1998 and
become CFO in 2006 after
spending nearly a decade
as an accounting manager
at a hospital and credit
union.
While doing the typical,
such as negotiating a new longterm lending arrangement, Ms.
Suvak has been cited for the development of the company’s philanthropy committee, establishing
relationships with the Hunger
Network of Greater Cleveland, the
Achievement Centers for Children
and its Camp Cheerful, the U.S.
Marine Corp.’s “Toys for Tots”
program and with the charitable
activities of the region’s professional sports teams.
She also has been involved in
building sales relationships with
customers and in spreading
accountability for customer service
throughout the company.
“Throughout her career at
Majestic Steel, Susan has led the
financial area and company as a
whole through myriad market cycles
and fluctuations, where timely and
prudent purchasing and selling
decisions are of utmost importance
to the organization’s financial
health,” the nomination said.
“Once again, Susan’s sound judgment, fact-based approach and
ability to stay composed in pressure-packed situations allows for
prudent decision-making relative
to success-critical issues.”
ike a growing
number of CFOs,
Robert Trabucco of
Sterling Jewelers
Inc. is more than a number
cruncher, as his additional
title, executive vice president suggests.
“Bob’s role is more of a
strategic partner and adviser to
Sterling’s CEO and COO,” said the
nomination. “For example, Bob,
along with our senior management
team, are the critical authors and
contributors to our five-year
strategic vision.”
Sterling Jewelers is the U.S.
operating company of Bermudabased Signet Jewelers Ltd. It
manages more than 1,300 jewelry
stores, many under the familiar
Kay Jewelers, Jared the Galleria of
Jewelry and JB Robinson Jewelers
marquees.
On the financial side, Mr.
Trabucco’s domain includes
capital planning, finance and
treasury, taxes, legal, compliance,
loss prevention, risk management
and credit operations.
In addition, his team creates and
updates sales plans and has kept a
close eye on expenses. The company
estimates financial
restructuring is reducing
expenses by over $100
million a year.
The nomination also
praised Mr. Trabucco for a
key role in the company
out-performing many
companies in other retail
sectors as well as out-performing
its peers in the specialty jewelry
business. It also attributes to him
the success of the firm’s in-house
credit program, which handles
54.2% of store sales in the face of
competition from ubiquitous international credit card brands.
Mr. Trabucco also gets credit for
agreements with the chain’s name
jewelry brands including Jane Seymour’s Open Hearts line and Leo
Schachter’s Leo Diamonds.
Before joining Sterling in 2003
Mr. Trabucco served as a retail
consultant for several years after
serving as CFO and then COO of
NordicTrack, a Logan, Utah,
fitness products retailer.
He has a master’s degree in
economics from Boston College
and undergraduate degrees from
Babson College and the University
of Massachusetts.
JUDGE’S
PROFILE
Michael J. O’Connor
Financial adviser ◆ Morgan
Stanley Smith Barney
Michael J. O’Connor has had a
long career in the finance and
treasury field at public firms such
as Lincoln
Electric Holdings Inc. and
Cedar Fair LP.
Prior to
joining Morgan
Stanley Smith
Barney’s
Wealth
Management
division in 2009, Mr. O’Connor
served as director in the investment
banking group at Union Partners
LLC.
Among other activities, Mr.
O’Connor serves as a board
member for Financial Executives
International, and he was the
president of Financial Executives
International when the Crain’s
Cleveland Business CFO of the Year
program was founded.
Mr. O’Connor and his wife live in
Moreland Hills along with two sons,
who are away attending college.
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C-13
20111017-NEWS--32-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
2011 CFO OF THE YEAR NOMINEES
INSPIRING
ENERGETIC
FABULOUS
AND THE PERFECT FIT!
Boyson
Carver
Domino
Goodill
Graf
Hill
Hrehocik
Jeziorski
Jones
Kohut
Kovack
Kramer
Matteucci
McMahon
Pincura
Scharf
Shields
Small
Dots is proud to congratulate its
Chief Financial Officer, Elaine Kapusta,
and all the finalists on their nominations
for the 2011 CFO of the Year Award!
Elaine’s leadership and dedication has
helped guide Dots in becoming a vibrant
and growing force in the women’s
fashion industry.
Thank you, Elaine! We admire you for your
passion and your wealth of contributions!
Other 2011 nominees for CFO of the
year are:
■ Richard Boyson, Therapy Partners
■ Randy Carver, Carver Financial
Services Inc.
■ Joel C. Domino, Kent Displays Inc.
■ William E. Goodill, Western
Reserve Partners LLC
■ Leslie F. Graf, Convention &
Visitors Bureau of Greater Cleveland
Inc. (Positively Cleveland)
■ Arthur B. Hill, Salvation Army
■ Jeff Hrehocik, Bearing Technologies Ltd.
■ Michael R. Jeziorski, Delta
Systems Inc.
■ Steve Jones, Hiram College
■ Joseph Kohut, Max-Trac Tire Co.,
subsidiary of Cooper Tire & Rubber Co.
■ Michael E. Kovack, Medina County
■ Thomas Kramer, Dar-Tech Inc.
■ Janice Matteucci, Conservancy
Stack
Welch
for Cuyahoga Valley National Park
■ James McMahon, Saint Martin
de Porres High School
■ David Pincura, SportsTime Ohio
■ Thomas G. Scharf, Walthall,
Drake & Wallace LLP
■ Kathleen M. Shields, Eliza
Jennings Senior Care Network
■ Mark Small, Cleveland Construction Inc.
■ Sean Stack, Aleris
■ Bradford J. Welch, Godfrey &
Wing Inc.
JUDGES’ PROFILES
SS&G congratulates our clients,
friends and all those honored …
Elizabeth A. Donaldson, De Nora Tech, Inc.
Michael E. Kovack, Medina County
William E. Goodill, Western Reserve Partners LLC
Barry Reis, Jewish Federation of Cleveland
Dave Hamrick, InfoCision Management Corporation
Cameron C. Rubino, OrthoHelix Surgical Designs, Inc.
Richard “Duke” Jankura, JumpStart Inc.
Susan Suvak, Majestic Steel USA, Inc.
Mike Jeziorski, CPA, Delta Systems, Inc.
Bradford J. Welch, Godfrey & Wing, Inc.
Elaine Kapusta, Dots, LLC
Timothy K. Pistell
Retired executive vice president, finance and administration and CFO ◆ Parker Hannifin Corp.
Timothy K. Pistell retired from
Parker Hannifin Corp in March 2011.
He had been with Parker since
1969, joining the company as a
corporate accounting trainee, and he
had served in various financial management posts within Parker.
Previously, he was vice president,
finance and administration and CFO.
In addition to other positions, he
served as vice president, treasurer of
Parker with responsibility over all treasury functions and investor relations.
Mr. Pistell earned his bachelor’s
degree from Miami University and his
master’s degree from Baldwin-Wallace College.
Among his involvements, Mr. Pistell
is on the board
of directors for
Ferro Corp., and
he is a member
of the Association for Financial
Professionals and The Financial Executives Institute.
He serves on the executive boards
of the Northeast Ohio Buckeye Chapter of the Multiple Sclerosis Society
and the Great Lakes Theater Festival,
and in September 2007, he was appointed to the board of trustees of
the Playhouse Square Foundation.
Mr. Pistell received Crain’s Cleveland Business CFO of the Year honors in 2008.
Stephen J. Smith
Discover what makes us different.
www.SSandG.com
CFO ◆ American Greetings Corp.
Stephen J. Smith has been senior
vice president and CFO of American
Greetings Corp. since 2006.
He oversees all aspects of American Greetings’ financial activities, including accounting, audit, financial
planning and reporting, retailer contract management, retailer financial
services, risk management, scanbased trading, shared services, tax
and treasury operations.
Prior to this role, Mr. Smith was
vice president
of both treasury
and investor relations, a position
he held from
2003 until 2006.
He received his bachelor’s degree
from the University of Notre Dame
and his master’s degree from the University of Texas at Austin.
He received Crain’s Cleveland Business CFO of the Year honors in 2009.
20111017-NEWS--33-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
C-15
2010 CFO OF THE YEAR AWARDS
Scenes from last year’s reception, held in October at LaCentre Conference and
Banquet Facility in Westlake.
ABOVE: The 2010 winners gather on
stage after the awards presentation.
LEFT: Rachel Stallard, nominee Nick
Stallard, Maria Stallard and Don Stallard of The Reserves Network.
JASON MILLER PHOTOS
ABOVE: Brian Kenyon, of The Rock and Roll Hall of Fame and Museum Inc. and a
winner in the nonprofit category, with his wife, Lori Kenyon. BELOW: Jessica Shuleva
of Saint Martin de Porres High School and Jeff Walters of event sponsor CBiz.
James Abel, most recently CFO of Lamson & Sessions, was honored with the
lifetime achievement award.
x
x
x
x
x
20111017-NEWS--34-NAT-CCI-CL_--
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10/14/2011
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Page 1
OCTOBER 17 - 23, 2011
LARGEST COLLEGES AND UNIVERSITIES
RANKED BY FALL 2011 FULL-TIME EQUIVALENT ENROLLMENT
Name of college or university
Address
Rank Phone/Web site
Full-time equivalent
enrollment
Fall 2011
Fall 2010
%
change
Student/
faculty ratio
Annual tuition
Room & board
% of enrollment
undergraduate
graduate
Type of
Operating budget
institution
(millions)
Affiliation
Year founded
Endowment
($ millions)
President
1
Kent State University
P.O. Box 5190, Kent 44242
(330) 672-3000/www.kent.edu
30,520
29,371
3.9%
20:1
$9,346.0
$8,830.0
85.0%
15.0%
4 year
public
$453.0
1910
90.5
Lester A. Lefton
2
University of Akron
302 Buchtel Common, Akron 44325
(330) 972-7111/www.uakron.edu
23,219
22,875
1.5%
21:1
$8,947.2
$9,160.0
85.0%
15.0%
4 year
public
$390.8
1870
186.5
Luis M. Proenza
3
Cuyahoga Community College(1)
700 Carnegie Ave., Cleveland 44115
(800) 954-8742/www.tri-c.edu
18,387
18,903
-2.7%
19:1
$2,736.6
NA
100.0%
0.0%
2 year
public
$213.6
1963
27.7
Jerry Sue Thornton
4
Youngstown State University
One University Plaza, Youngstown 44555
(330) 941-3000/www.ysu.edu
14,541
15,194
-4.3%
20:1
$7,451.0
$7,900.0
92.0%
8.0%
4 year
public
$158.8
1908
151.6
Cynthia E. Anderson
5
Cleveland State University
2121 Euclid Ave., Cleveland 44115
(216) 687-2000/www.csuohio.edu
12,593
11,931
5.5%
17:1
$8,952.0
$11,848.0
66.0%
34.0%
4 year
public
$221.0
1964
NA
Ronald M. Berkman
6
Case Western Reserve University
10900 Euclid Ave., Cleveland 44106
(216) 368-2000/www.case.edu
8,815
8,939
-1.4%
10:1
$38,760.0
$11,938.0
42.0%
58.0%
4 year
private
$941.7
1826
1,703.0
Barbara R. Snyder
7
Lorain County Community College
1005 N. Abbe Road, Elyria 44035
(800) 995-5222/www.lorainccc.edu
7,888
8,375
-5.8%
20:1
$2,679.3
NA
100.0%
0.0%
2 year
public
$66.2
1963
22.6
8
University of Phoenix, Cleveland Campus
5005 Rockside Road, Suite 130, Independence 44131
(216) 447-8807/www.phoenix.edu/cleveland
7,400
7,900
-6.3%
NA
NA
NA
NA
NA
4 year
private
NA
2000
NA
Bill Pepicello
9
Lakeland Community College
7700 Clocktower Drive, Kirtland 44094
(440) 525-7000/www.lakelandcc.edu
5,828
6,059
-3.8%
20:1
NA
NA
100.0%
0.0%
2 year
public
$58.7
1967
NA
Morris W. Beverage
Jr.
10
Stark State College
6200 Frank Ave. NW, Canton 44720
(330) 494-6170/www.starkstate.edu
4,603
4,576
0.6%
20:1
$140.5
NA
100.0%
0.0%
2 year
public
$68.0
1960
2.3
Thomas Chiappini
11
Ashland University
401 College Ave., Ashland 44805
(419) 289-4142/www.ashland.edu
4,429
4,823
-8.2%
10:1
$27,654.0
$9,352.0
52.0%
48.0%
4 year
private
NA
1878
NA
Frederick Finks
12
Baldwin-Wallace College
275 Eastland Road, Berea 44017
(440) 826-2900/www.bw.edu
3,700
3,834
-3.5%
15:1
$26,396.0
$7,346.0
84.0%
16.0%
4 year
private
$110.8
1845
119.7
Richard W Durst
Roy A. Church
FIND OUT WHY YOU DESERVE PLANTE & MORAN
for your accounting, tax, and business consulting needs. Visit yes.plantemoran.com Dan Hursh, Partner, 216.274.6519
13
John Carroll University
20700 North Park Blvd., University Heights 44118
(216) 397-1886/www.jcu.edu
3,624
3,572
1.5%
14:1
$30,660.0
$9,150.0
81.0%
19.0%
4 year
private
$78.0
1886
169.3
Rev. Robert L.
Niehoff, S.J.
14
Oberlin College
101 N. Professor St., Oberlin 44074
(440) 775-8400/www.oberlin.edu
2,983
2,974
0.3%
9:1
$42,842.0
$11,550.0
99.2%
0.8%
4 year
private
NA
1833
NA
Marvin Krislov
15
Walsh University
2020 E. Maple St. NW, North Canton 44720
(330) 490-7090/www.walsh.edu
2,883
2,963
-2.7%
15:1
$22,500.0
$9,360.0
82.0%
18.0%
4 year
private
NA
1960
63.6
Richard Jusseaume
16
University of Mount Union
1972 Clark Ave., Alliance 44601
(330) 821-5320/www.mountunion.edu
2,202
2,226
-1.1%
13:1
$25,700.0
$8,150.0
97.0%
3.0%
4 year
private
$50.9
1846
115.0
Richard Giese
17
Malone University
2600 Cleveland Ave. NW, Canton 44709-3897
(330) 471-8100/www.malone.edu
2,201
2,279
-3.4%
13:1
$22,832.0
$8,090.0
81.0%
19.0%
4 year
private
$39.3
1892
14.9
Will J. Friesen
18
The College of Wooster
1189 Beall Ave., Wooster 44691
(330) 263-2000/www.wooster.edu
1,970
1,951
1.0%
11:1
$38,290.0
$9,310.0
100.0%
0.0%
4 year
private
$73.0
1866
258.0
Grant H. Cornwell
19
Notre Dame College
4545 College Road, South Euclid 44121
(216) 381-1680/http://notredamecollege.edu
1,807
1,676
7.8%
14:1
$24,002.0
$8,054.0
86.0%
14.0%
4 year
private
$43.2
1922
7.5
Andrew P. Roth
20
Ohio Technical College
1324 E. 51st St., Cleveland 44103
(216) 881-1700/www.ohiotech.edu
1,511
1,492
1.3%
13:1
NA(2)
NA
100.0%
0.0%
2 year
private
$20.0
1969
NA
Marc Brenner
21
Hiram College(3)
P.O. Box 67, Hiram 44234
(330) 569-3211/www.hiram.edu
1,334
1,396
-4.4%
12:1
$28,000.0
$9,460.0
NA
NA
4 year
private
NA
1850
NA
Thomas V. Chema
22
Lake Erie College
391 W. Washington St., Painesville 44077
(440) 296-1856/www.lec.edu
1,165
1,216
-4.2%
14:1
$26,550.0
$3,959.0
86.0%
14.0%
4 year
private
$23.3
1856
NA
Michael T. Victor
23
Remington College-Cleveland Campus
26350 Brookpark Road, North Olmsted 44070
(440) 777-2560/www.remingtoncollege.edu
986
1,170
-15.7%
15:1
$16,995.0
NA
100.0%
NA
2 year
private
NA
1986
NA
Gary A. Azotea
Patrick Resetar
24
Ursuline College
2550 Lander Road, Pepper Pike 44124
(440) 449-4200/www.ursuline.edu
903
949
-4.8%
8:1
$24,660.0
$8,288.0
64.0%
36.0%
4 year
private
$29.5
1871
34.0
Diana Stano, O.S.U.
25
Northeast Ohio Medical University
4209 State Route 44, Rootstown 44272
(330) 325-2511/www.neomed.edu
778
767
1.4%
NA
NA(4)
NA
0.0%
100.0%
4 year
public
$45.5
1973
11.3
Jay Alan Gershen
26
The Cleveland Institute of Art
11141 East Blvd., Cleveland 44106
(216) 421-7000/www.cia.edu
530
534
-0.7%
9:1
$31,760.0
$11,354.0
100.0%
0.0%
4 year
private
$15.9
1882
NA
Grafton J. Nunes
Source: 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 and will include omitted information or clarifications in coming issues. Individual lists and The Book of
Lists are available to purchase at www.crainscleveland.com. (1) Annual tuition is for a full-time student, (30 credit hours). (2) Annual tuition is $17,520 to $18,200. (3) Tuition
number is for the incoming class, Fall 2011. Tuition for students enrolling with Tuition Guarantee remains the same through the student's fourth year. (4) M.D. tuition is $33,003.
PharmD tuition is $19,947.
RESEARCHED BY Deborah W. Hillyer
20111017-NEWS--35-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
NASA: Manufacturers show interest
The technologies are far ranging
and include things like a special
copper alloy that NASA developed
for rocket nozzles. Those nozzles have
to withstand tremendous temperatures and other harsh environmental
conditions.
As it turns out, they also make
great welding electrodes that can be
used on robotic welders — electrodes
that last far longer than those available using other metals, NASA says.
“If you have a bunch of welding
robots, and you don’t have to stop
everything to change electrodes as
often as before, that’s a big deal,”
Dr. Bartolotta said. “That’s one of
the things that’s going to be introduced at the show.”
What color’s your technology?
Also set to be unveiled is the
material NASA developed to keep
jet engine blades from penetrating
the bodies of jet engines and plane
fuselages.
The material, a type of foam
sandwiched between special layers
of something similar to carbon
fiber, is super tough, but it’s also
light. It might even serve as a new,
lighter skin for NASA’s next rocket,
though it could be useful in making
lighter and stronger car bodies, Dr.
Bartolotta said.
Other technologies include sensors
and controls that could help hybrid
or electric cars become more efficient; solid oxide fuel cells to power
vehicles; new materials that can be
used to contain pressurized natural
gas; and green polymers that put
out only water and not noxious gases
when they are used.
It’s not as though NASA or even
NASA Glenn in Cleveland has
avoided commercializing technology in the past. But Dr. Bartolotta
said much of the agency’s past
attempts at commercialization have
involved working with the aerospace industry. Now, he said, the
agency is branching out to help a
broader swath of U.S. manufacturing — and potentially help NASA
pay for itself via licensing agreements, development partnerships
or other projects where industry
pays to use or even further develop
NASA’s inventions.
“NASA is open for business. We’re
opening our safe, so to speak,” Dr.
Bartolotta said.
In its last fiscal year that ended
Sept. 30, 2011, NASA Glenn brought
in $41.8 million in new business from
its technology transfer efforts, said
agency spokeswoman Katherine
Martin. About $17 million of that
involved letting companies use NASA’s
labs and facilities, for things like
wind-tunnel testing of wind-energy
equipment; and the remaining $24.8
million came from licensing and
collaborative research efforts with
industry, like what it hopes to conduct with automakers, she said.
Dr. Bartolotta said NASA is trying
to be easier to work with than
before, and described the current
effort as a “product pull,” rather
than a technology push. What’s the
difference?
“A technology push is when I say,
‘I have this new material for you,’
and then you say, ‘I like it, but I
need it in green.’ Then I say, ‘I have
it in yellow, here, take it’ — that’s
the way technology has been pushed
in the past,” Dr. Bartolotta said.
Now, he said, NASA is seeking not
only to introduce its technologies,
but to work with industry to
advance and amend them to suit
business needs. In other words, he
said, if you need it in green, NASA
will try to make it that color.
Eager to launch
The manufacturing sector seems
interested too, and the Oct. 27 event
is being co-sponsored by the Center
for Automotive Research at Ohio
State University and the Clevelandbased manufacturing advocacy and
consulting group Magnet.
“I think it’s going to be very good
— NASA’s got a lot of great technology
to share,” said Ed Nolan, vice president of product development and
engineering at Magnet and a member of the focus groups that helped
select the technologies NASA will
present.
Mr. Nolan said today’s auto industry faces many of the same challenges
confronted by aerospace companies
— how to make vehicles lighter, more
efficient, more powerful and easier or
less costly to manufacture. It makes
sense to turn to NASA for ideas on
how to do that, he said, and he’s glad
to see NASA embrace the opportunity.
“I think it’s a different NASA than
we’ve seen in the past — more open
and wanting to share their technologies with the industrial community,”
Mr. Nolan said.
Even some in the automotive sector who had not yet heard of the
event said they thought it was a good
idea that sparked their interest.
“I hadn’t received an invite for this
event yet, (but it) sounds pretty interesting,” said Bill Adler, president of
Cleveland-based Stripmatic Products,
a maker of tubular products used in
suspension systems and other automotive components.
U.S. companies in the automotive
supply chain constantly are looking
for ways to be more competitive,
including by looking out for new
technologies and materials, Mr.
Adler said.
The show is not open to everyone,
though. NASA, Magnet and other
show sponsors invited 600 companies from around the nation; about
110 already have signed up, Mr.
Nolan said. Others can attend, by
contacting Magnet, he said, but only
if they are representatives of manufacturers in the auto industry.
■
Boost: Operator eyes 20 more
process is a nice validation of the
work we’re doing. Those are critical
dollars that enable us to replicate
the successful school model and
expand the Breakthrough network.”
Breakthrough was pitted against
applications from 34 other charter
groups around the country. Breakthrough’s leaders attribute its academic results as the key factor in
securing the funding.
U.S. Department of Education
Secretary Arne Duncan said in a
statement that grantees serve “a
student population that is majority
low-income and virtually all exceed
the average academic performance
for all students in their state.”
Breakthrough Schools doesn’t
receive any funding from local governments for its efforts, but it does
receive state and federal dollars,
though significantly less than the
Cleveland Metropolitan School District. Still, the group’s leaders maintain its students outperform students
in Ohio’s urban and suburban schools.
According to data from Breakthrough, its students, who are 95%
African American and 80% from
low-income families, outperformed
other Ohio students on every test at
every grade level last year.
“We’re gaining some notoriety
and publicity, but it’s because of
what’s happening in the schools —
the job the teachers are doing and
our kids work hard to get good academic results,” Mr. Rosskamm said.
Breakthrough’s goal is to have 20
operational charter schools in its
network by 2020, serving more than
7,000 students in the area, according
to John Zitzner, president of Friends
of Breakthrough, the fundraising
and advocacy arm of the charter
school network. The network now
serves about 1,300 children.
Mr. Zitzner said Breakthrough
plans to raise as much as $4 million
over its next fiscal year, which ends
in June, to support the organization’s
rapid growth strategy. Last year, the
organization brought in more than
$2 million with the help of major
gifts from the Cleveland-based iron
ore producer Cliffs Natural Resources
and the Wickliffe-based specialty
chemicals company Lubrizol Corp.
Mr. Zitzner said the organization
continues to talk with area companies, foundations and individuals
about financially backing its efforts.
“It’s a very significant grant that
we deserve, and it’ll help us toward
that $4 million, but by no means
does it take us where we need to
go,” he said. “It just puts us in right
direction.”
■
HIGHER EDUCATION
Pam Lebold,
Director
H
ands down, our higher education professionals are
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quite cut it. The way we see it, it’s not enough that we’re
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35
20111017-NEWS--36-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
Athersys: Technology has potential
For instance, Athersys in December
2009 signed a deal with Pfizer Inc.
that gave the pharmaceutical giant
rights to sell MultiStem to treat
patients with inflammatory bowel
disease. In exchange, Pfizer agreed
to pay Athersys $6 million up front
and another $105 million as the
company hits certain goals. Pfizer
also agreed to reimburse the company for clinical trial costs and give
the company royalties from product
sales.
Athersys, then, could strike deals
with other companies interested in
acquiring the rights to sell MultiStem to treat patients with other
conditions.
In October, Athersys began
enrolling patients in phase two
clinical trials intended to test
MultiStem’s effectiveness in treating
stroke patients, but it has yet to strike
a deal with a partner to commercialize the technology for that
condition.
Stroke represents “a huge market
opportunity” for MultiStem, Ms.
Migliore said. Early data suggest the
therapy could help stroke patients
recover even if they receive treatment
a week after they have the stroke.
Today, patients have no good
options if they aren’t treated within
three hours, she said.
It’s happened elsewhere
Other big companies have shown
a willingness to invest in adult stem
cell technologies, Dr. Van Bokkelen
said. He mentioned how drug maker
Cephalon Inc. of Frazer, Pa., paid
Mesoblast Ltd. of Australia $130
million — an amount that could
rise to $1.7 billion as Mesoblast hits
certain goals — to receive global
rights to market its adult stem cell
technology as a treatment for cardiovascular and central nervous
system conditions.
“There are companies out there
who recognize that (adult stem cell
therapies) could be a game changer,”
Dr. Van Bokkelen said.
Cephalon also paid $220 million
to buy a 20% stake in Mesoblast.
So could a large equity investment
or an outright acquisition be in
Athersys’ future? Dr. Van Bokkelen
said it wouldn’t surprise him if a
company showed interest in
acquiring Athersys, but he said he
doesn’t “spend a lot of time thinking
about that as a possibility for the
company,” he said.
If Athersys can produce solid
results in a phase two clinical trial,
its technology will become more
appealing to strategic partners and
other investors — but it likely won’t
complete a phase two trial until late
next year or early 2013, Dr. Van
Bokkelen said. The company might
have to raise more cash or cut
expenses before then, though:
Unless it makes significant changes,
the company’s cash reserves will
last “well into the second half of 2012,”
said Athersys president William
“B.J.” Lehmann.
Both Ms. Migliore and Steve
Brozak, president of San Diego-based
WBB Securities LLC, said Athersys’
stock suffered because investors
have been avoiding small companies with uncertain prospects.
In selling Athersys stock, investors
made a big mistake in Mr. Brozak’s
eyes. He said company executives
know the science behind their technology better than their competitors and that they “basically make
their dollars go longer and further
than anybody else on the planet.”
Plus, the technology is extremely
promising, he said, which might
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■
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Gil Van Bokkelen, CEO of Athersys, says in regard to a potential acquisition,
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STATEMENT OF OWNERSHIP
MANAGEMENT AND CIRCULATION
1. Publication title: Crain’s Cleveland Business
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❑ Has Not Changed During Preceding 12 Months
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13. Publication Title: Crain’s Cleveland Business
14. Issue Date for Circulation Data Below: September 26, 2011
15. Extent and Nature of Circulation
No. Copies
Average no. of copies
of single issue
each issue during
published nearest
preceding 12 months
to filing date
A. Total No. Copies (Net Press Run)
20,815
20,120
B. Paid Circulation (by mail and outside the mail)
(1) Mailed Outside-County Mail Subscriptions Stated on PS Form 3541
(Include paid distribution above nominal rate, advertiser’s proof
copies and exchange copies)
6,323
6,224
(2) Mailed In-County Paid Subscriptions stated on PS Form 3541
(Include paid distribution above nominal rate, advertiser’s proof
copies and exchange copies)
12,819
12,400
(3) Paid distribution Outside the Mails including Sales through
dealers and carriers, street vendors, counter
sales, and other paid distribution outside USPS
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168
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0
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(Sum of 15B(1), (2), (3) and (4))
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18,792
D. Free or Nominal Rate Distribution (by mail and outside the mail)
(1) Free or Nominal Rate Outside-County Copies included
on PS form 3541
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on PS form 3541
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95
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20,815
20,120
I.Percent Paid and/or Requested Circulation
(15C/15F x 100)
98.28%
99.17%
16. Publication of Statement of Ownership printed in the 10/17/11 issue of this publication.
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subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).
Brian Tucker, Publisher
9-29-11
20111017-NEWS--37-NAT-CCI-CL_--
10/14/2011
3:16 PM
Page 1
OCTOBER 17 - 23, 2011
37
Math: University may apply concept to other areas
traditional lecture course; consider
this math boot camp in a computer
lab on steroids (and decorated with
couches resembling addition signs).
Based on diagnostic testing,
freshmen who come to Kent State
prepared for college-level mathematics can bypass the emporium,
but this fall more than 1,400 students are enrolled in the program.
“In order to pass the course and
succeed in the course, the student
has to do the mathematics. They
have to sit there and work problem
after problem,” Mr. Laux said. “There
is no more passive learning or even
an attempt at passive learning.”
The computer software is comparable to a video game of sorts. Students, for one, are given individual-
ized lesson plans and must master
each task at their own pace before
moving on to the next. Also, lastminute cramming won’t do, as
steady progress is required to get
through the class.
The university this fall invested
about $1.2 million in the facility,
now dubbed the “Math Emporium,”
to combat a 30% to 35% rate of
students receiving an “F” or “D” or
withdrawing from the university’s
remedial algebra courses — a problem all too familiar for colleges and
universities throughout the country.
Students aren’t coming to college
with the proper background in
mathematics, which often leads to
poor academic performances and
perhaps a decision to leave the university. That hurts the university’s
Issue 2: Ads not necessarily
intended to inform voters
campaigns. “Voters who don’t pay
close attention to what’s been going
on will be very hard-pressed to
identify what the key issues are.”
The University of Akron’s
Stephen Brooks said that informing
citizens about the reasons they should
be for or against the issue is not a
goal of either Issue 2 campaign, or
most contemporary election advertising.
“These days, most political campaign ads are not really focused on
changing minds or debating the
issue,” said Dr. Brooks, associate
director of the Ray C. Bliss Institute
of Applied Politics. “They are used
as motivational tools” to get as
many potential voters on one side
of the issue or the other out to vote.
Dr. Brooks said it appears to him
that both sides believe that most
potential voters already have made
up their minds on this issue. So
given that, especially for the proIssue 2 side that polls say is down by
about 10 percentage points, the
goal of the Issue 2 advertising is to
drive more voters who have already
made up their minds to the polls.
“You might see a more sophisticated discussion of the issue in a
close race where you have a large
number of undecided or persuadable voters,” he said.
The clips of firefighters rescuing a
child from a burning building
worked for both sides because the
rescue strikes an emotional chord
that the advertising on both sides is
trying to reach.
Many television stations have
pulled the ad, but Building a Better
Ohio continued to use the video in
emails.
Complex issue, simple ads
SB 5 restricts the collective bargaining rights of public employees,
public school teachers and state
college faculty and it prohibits them
from striking. It also requires that
merit be a factor in setting teacher
salaries and ends the practice of
basing layoffs strictly on seniority.
At a 90-minute debate among
labor lawyers at Cleveland State
University’s College of Law last
Wednesday, Oct. 12, local attorneys
Craig Brown, who represents management, and Susannah Muskovitz,
who represents unions at the
bargaining table, delved more
deeply into the nuances of the issue,
and spoke more frankly, than television advertising could ever do.
Mr. Brown conceded that SB 5
“eviscerates collective bargaining”
in the public sector, but argued that
public sector labor relations have
become dysfunctional because of
the ability of union campaign contributions to sway public officials
into labor agreements more generous to employees.
Ms. Muskovitz agreed with Mr.
Brown on at least one point, saying
SB 5 “destroys collective bargaining.”
But she pointed out to an audience that included lawyers and
Cleveland State faculty members
and students that a provision that
would take away tenure from some
university professors at schools
where the faculty is unionized, will
make those colleges less attractive
places to teach.
“If Ohio wants to attract the best
and the brightest faculty, having no
tenure will kill that,” she said.
Most state colleges with unionized faculty are in the northern part
of the state. Faculty at Miami, Ohio
and Ohio State universities are not
affiliated with a union.
Those distinctions, which are
important in assessing whether the
legislation deserves to survive, are
not being discussed in television advertising, which has a much larger
reach. That’s because, Dr. Brooks
said, contemporary campaign
advertising is geared to promoting
candidates rather than issues.
“Issue voting is much more complex than candidate voting,” he said.
“In a candidate campaign, what you’re
talking about is the future, so you
talk about trust and that sort of thing.
“Issue campaigns, even a school
board tax levy, it’s not just about
‘We’re going to raise your taxes’ but
it’s what happens to the schools, the
price of your home. It’s hard to get
that stuff into ads so you fall back on
sound bites and emotions.”
So, he said, the campaign supporting SB 5 is trying to say to
voters, “This is a way to take care of
(the financial problems facing) state
government and trust us that this
will take care of it.”
The campaign to repeal is arguing
that, “This legislation is disrespectful
of you and your kids and it will make
life miserable for them, but let’s not talk
about how it will do that,” he said. ■
retention rate and ultimately its
finances.
“Kids with low GPAs typically don’t
return,” Kent State provost Robert
Frank said. “This is fundamental to
graduation and retention rates.”
Robot U.?
Kent State president Lester Lefton
said the math emporium is designed
to pick up the slack for the nation’s
lagging K-12 system, which he
believes is churning graduates who
aren’t ready for a college workload.
“It’s big, it’s bold, it’s innovative,”
Dr. Lefton said about the emporium
concept. “This is the kind of thing
other universities in Ohio might
want to do.”
Despite some initial concerns,
parents need not worry their children are being educated by
machines, Kent State officials said.
The lab is staffed by 10 teaching
assistants and faculty at any time
throughout the day.
Before starting the course, students are given diagnostic tests to
place them at the appropriate level
of coursework. If students need help
beyond the digital tools offered
through the software, faculty members are willing to work one-on-one
with students.
“We’re teaching our students,”
Mr. Laux said. “We’re incorporating
software just like many classrooms
incorporate textbooks, but the software is much more responsive.”
Andrew Tonge, chairman of the
Department of Mathematical Sciences
at Kent State, said the early data
suggest students are learning in the
emporium model and progressing
through the software at a steady pace.
Of the 1,400 students enrolled in
the emporium this semester, about
200 have finished the coursework.
Mr. Laux said while the early
results are encouraging, he’s interested to see how well the students
retain the material as they advance
in their studies.
“I’m quite interested to what
happens when they step outside the
emporium model and take their first
college-level course, he said. “To
tell you the truth, only time will tell.”
Adding to the equation
The math emporium concept
was first developed in 1997 at Virginia Tech University. While university officials at Virginia Tech say
they don’t have any concrete data
to share that suggest the model is
working, they’re confident students
are learning the material.
“All aspects of our instructional
model, including the online text,
on-demand help, and unlimited
practice problems, emphasize that
students learn math by doing math,”
said Terri Bourdon, manager of
Virginia Tech’s math emporium in
an email. “The large numbers of
students who use our facility to
work on their math courses without
being required to do so provides
substantial evidence of our success.”
Kent State officials maintain the
investment will save the university
and students money in the long haul,
and it would only take the university
two or three years to recoup the $1
million price tag of the facilities.
In the meantime, the university is
considering using the emporium
model in other areas of study, with
foreign languages being a top contender.
But for Mr. Laux, witnessing a sea
of students learning is a sight to
behold.
“Every time I walk in, there are
240 students learning and talking
mathematics,” he said. “There’s no
way out. I had a big smile on my
face on Day One.”
■
of
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20111017-NEWS--38-NAT-CCI-CL_--
38
10/14/2011
3:29 PM
Page 1
Contact:
Phone:
Fax:
E-mail:
REAL ESTATE
Toni Coleman
(216) 522-1383
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[email protected]
AUCTION
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20111017-NEWS--39-NAT-CCI-CL_--
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OCTOBER 17 - 23, 2011
39
THEINSIDER
THEWEEK
REPORTERS’ NOTEBOOK
BEHIND THE NEWS WITH CRAIN’S WRITERS
OCTOBER 10 - 16
Give Lubrizol
a gold star
The big story: Case Western Reserve Univer-
■ They’re only formulating, making and
mixing a bunch of chemicals.
What could go wrong?
Plenty, if you’re not careful
or professional. But the point is,
nothing of consequence has gone
wrong at the Wickliffe plant of Lubrizol Corp., a company that makes
oil additives, specialty coatings and
other advanced chemicals. That’s one
reason the plant recently was recertified as
a Voluntary Protection Program Star site by
the U.S. Occupational Safety and Health
Administration.
In making the announcement, OSHA
noted both Lubrizol’s ability to respond to
emergencies and hazard materials incidences, an excellent incident reporting system and even its “exceptional recycling and
waste stream management.”
Better yet, as Lubrizol itself reports,
the site has 90% fewer accidents than the
average for plants in its industry. — Dan
Shingler
sity publicly launched a $1 billion fundraising
campaign that so far has brought in about $660
million — $50 million of which is anchored by a
recent pledge from the foundation of the late
industrialist Albert J. Weatherhead III. The university has been raising money quietly for the
campaign for the last four years. It plans to use
the public portion of the campaign over the next
five years to reach a larger pool of donors.
Fundraising priorities will be driven by the school’s
2008 strategic plan, which is focused on strengthening the base of scholarships, increasing the
number of endowed professorships, expanding
academic programs and building new facilities.
An interesting turn: The Cleveland Indians
said they’re working with Cleveland State
University’s Fenn College of Engineering to
install a 15-foot-tall wind turbine at Progressive
Field before next season. Grants from the U.S.
Department of Energy and the state of Ohio
will cover the cost of the turbine and installation.
Indians spokesman Curtis Danburg said the
project has been in the works for a couple years.
“It’s another opportunity to partner with a
Cleveland institution,” Mr. Danburg said.
“We’ve been an industry leader in the (sustainability) field, and this is an extension of that.”
Best Buy buy: Monmouth Real Estate Investment Corp. of Freehold, N.J., acquired the justcompleted Best Buy warehouse in Streetsboro’s
Interstate Commerce Center industrial park
from Geis Development Co. for $19.6 million.
Best Buy Warehousing Logistics Inc. has leased
the newly constructed building through Aug. 31,
2021, Monmouth said. Best Buy moved 40
employees to Streetsboro this fall as it consolidated operations from three buildings in Glenwillow to a single property.
Statewide coverage: Cleveland law firm
Calfee, Halter & Griswold LLP said it’s opening
a Cincinnati office led by two
prominent political figures in
the state — former Cincinnati
Mayor Charlie Luken and
former state Sen. Richard Finan.
The new location gives Calfee
a presence in Ohio’s three
largest cities, as it already has
offices in Cleveland and
Columbus. Both attorneys
had been based in Calfee’s
Columbus office and will
continue to serve their clients
there and elsewhere while working
out of the Cincinnati office.
Wired up:
B&B Electronics of Ottawa, Ill., a
maker of rugged wireless connectivity and communication products, bought Quatech Inc. of
Hudson. In August, DPAC Technologies Corp.,
the owner of Quatech, said B&B Electronics
agreed to acquire substantially all the assets of
Quatech for $10.5 million. Sean Harrigan, CEO
of B&B Electronics, said Quatech’s products
“enable reliable machine-to-machine communications” via secure wireless or traditional
wired networks, with industrial-grade embedded
radios, modules, boards, and external device
servers and bridges.
A new spark: Blue Spark Technologies of
Westlake, a maker of thin, flexible disposable
printed batteries, said it has named John Gannon
as president and CEO, effective immediately.
The company’s former CEO, Norbert Dawalibi,
will remain with the company in an active role
as the new executive chairman of the board. Mr.
Dawalibi had been in the job only since last
April, when he replaced Gary Johnson as chief
executive.
Sun shines on Fla. office
of Weltman Weinberg
■ A year ago, there were four. Now, Weltman, Weinberg & Reis Co. LPA’s Florida staff
numbers more than 60.
As a result, the Cleveland-based creditors’
rights law firm moved its Fort Lauderdale
office in early October from a 2,700-squarefoot location to one next door measuring
WHAT’S NEW
more than 12,000 square feet.
National clients are hiring Weltman
Weinberg to do more of their work and are
driving the growth, said Peter Winzig,
director of marketing and corporate development. Once the
firm’s new office was operational,
it had an immediate influx of work
and was able to add 13 attorneys, he
said.
The Florida office’s initial focus
was on real estate default — opportune, considering that Florida is one of the
country’s busiest states in terms of delinquent real estate loans.
The office now has added bankruptcy,
litigation and defense
teams, and plans to add
staff to do collections
work, Mr. Winzig said.
Alan Weinberg, managing partner of the
firm, said he’s proud
that it continues to create opportunities for
people at a time when
there’s much talk about
the need for job creation.
In all, Weltman Weinberg operates 10
offices in five states. — Michelle Park
Putting its signature
on a historic hotel
■ Signature Health, a mental health services
provider in Willoughby, is expanding its
operations in Ashtabula and taking over the
BEST OF THE BLOGS
Excerpts from recent blog entries on
CrainsCleveland.com
Why did the chicken farmer
cross the country?
COMPANY: Team Wendy, Cleveland
PRODUCT: EPIC Air Combat
Helmet Liner System
The company, which makes protective
equipment for the U.S. Army, the Marine
Corps and law enforcement, says the EPIC
Air system is the “next generation” of Team
Wendy protective helmet liners, and it features several key design and technology
improvements.
The design “incorporates three main pads
(front, rear and crown) for impact protection,
an assortment of ergonomically designed
comfort pads, and patent-pending air channeling technology to keep (users) cooler
while maintaining maximum comfort and stability,” according to Team Wendy.
The comfort pads and air channels “can
be used in any configuration to customize the
comfort and fit to each individual user,” the
company says. EPIC Air comes in a variety
of cuts and sizes to fit any style of ground
combat helmet and is compatible with all
styles of communication headsets.
It uses Team Wendy’s patented Zorbium
foam, the same material used in the standard
issue pad sets for the Advanced Combat Helmet,
Marine Lightweight Helmet and Enhanced
Combat Helmet.
For information, visit www.TeamWendy.com.
Send information about new products to
managing editor Scott Suttell at ssuttell@
crain.com.
historic Ashtabula Hotel on Main Avenue to
serve as its new office space.
Sandvick Architects in Cleveland, the firm
that renovated the Old Arcade in downtown
Cleveland, will draft the redesign of the
structure, which has been vacant since 1989.
The project is slated to cost $3.8 million.
The hotel was added to the National Register of Historic Places in 1985.
“This was very attractive for a few
reasons,” said Jonathan Lee, Signature
Health’s CEO. “In Ashtabula there is old
building stock and not a lot of places
to build new. It’s interesting to me that
there’s also a chance to preserve something
historic.”
The construction
project, which should
be finished by fall
2012, will double Signature Health’s office
space in Ashtabula to
about 32,000 square
feet.
The expansion is
expected to lead to 35
to 40 additional hires
for Signature Health
over the next two
years, Mr. Lee said.
The for-profit Signature Health has locations in Cuyahoga, Lake, Ashtabula and
Geauga counties. Mr. Lee said the company,
which employs more than 200, has been
able to continue to expand its operations
since its founding in 1993 by entering areas
with low levels of uncompensated care. —
Timothy Magaw
■ Ever thought about chucking the corporate career to do something you really love?
(Of course you have; it’s that
money thing that probably
gets in the way.) If so, check
out a CNNMoney.com video
about Ami Gignac, who runs
Breakneck Acres, a certified
organic farm in Ravenna.
Ms. Gignac, a former executive at a mining company in
San Francisco, left the corporate career and
now raises organic crops and chickens.
According to the company’s informative
Facebook page, its products are currently
being sold on the farm and at the Haymaker
Farmers’ Market in Kent.
The video isn’t great on details, but it has
some terrific images of a great idea by Ms.
Gignac and her partner, Tim Fox. Instead of
keeping chickens in a traditional coop, they
bought and retrofitted an old school bus.
Ms. Gignac says the bus offers twice the
space at half the cost.
Now that’s the kind of innovation any
business — a big corporation or a small
farm — can use.
There’s no business
like snow business
■ Cleveland figured prominently in a story
from TheAtlanticCities.com about how
stadiums nationwide are being put to use
outside their traditional seasons.
Progressive Field’s “Snow Days” event
was held up as a model for making use of a
baseball stadium without a roof in the Midwest in mid-winter.
“When you have lemons, you make
lemonade,” said Kurt Schloss, senior director
of merchandising and licensing for the
Cleveland Indians. “In our particular case, we
wanted to embrace the cold, embrace Northeast Ohio, because that’s what it is. You
can’t put up palm trees and hope for sand.”
The team is augmenting Snow Days this
year with an outdoor hockey game
on Jan. 15 between Ohio State
and Michigan. Organizers are
expecting a sellout.
“We’ve got an opportunity,
given the proximity of the stadium in our downtown core,
that we can build on this,”
said Joe Marinucci, president of
the Downtown Cleveland Alliance
Pop goes the sale,
likely at a big price
■ There are some old-time Cleveland ties
to a painting that’s expected to fetch $35
million when it’s auctioned off in New York.
The Wall Street Journal reported that
Courtney Ross, the New York widow of former
Time Warner CEO Steve Ross, has enlisted
Christie’s to auction off a Roy Lichtenstein
painting for at least $35 million on Nov. 8. The
couple paid $2 million for the 1961 painting
23 years ago. The painting, part of the pop
art movement, is called “I Can See the
Whole Room … and There’s Nobody in It!”
Before Ms. Ross, the work was owned by
Burton and Emily Tremaine. Mr. Tremaine,
a Cleveland native who died in 1991 at age
89, was the son of a co-founder of Nela Park.
He began his business career in his early 20s
as president of the Superior Screw and Bolt
Co. of Cleveland.
The Tremaines’ collection included
“Three Flags,” an early painting by Jasper
Johns, as well as works by Pablo Picasso,
Mark Rothko, Andy Warhol and others.
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4:49 PM
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