crain's cleveland business

By MICHELLE [email protected]

Westlake accountant Brian Mackert recalls a localbanker telling him in 2009 about a directive the bankerhad received: “Go out and play golf with your existingcustomers and stay close to them. Don’t go out lookingfor new loans.”

That’s not the line a number of local banks are deliv-ering today: Several havehired people whose expressroles are to grow loans, and some have establishednew avenues for increasingtheir loan volumes tobusiness.

Lorain National Bankrecently hired a handful ofbusiness and commercialbankers, and Huntington National Bank in 2010 more than doubled its businessbanking staff in Northeast Ohio. It added 37 for a total of65, said Ken Ferian, Huntington senior vice president andbusiness banking area manager in Northeast Ohio.

“The numbers arepretty stunning. Ifeel like we’re justgetting started.” – Daniel P. Walsh Jr.,president, HuntingtonNational Bank’s GreaterCleveland region

$1.50/JANUARY 10 - 16, 2011

Entire contents © 2011 by Crain Communications Inc.

Vol. 32, No. 2

07148601032

602 SPECIAL SECTION

SMALL BUSINESSNortheast Ohio’s toy companies share their latestproducts, inspiration ■■ 3PLUS: RESOLUTIONS ■■ GRAND OPENINGS ■■ TAX TIPS ■■ & MORE

NEW

SPAP

ER

Vehicle sales pickup boon for suppliersLocal manufacturers’ orders accelerate as Big 3 automakers regain market shareBy DAN [email protected]

A million here, a million there —pretty soon you’re talking about alot of automobiles, and a lot of workfor local manufacturers that supplythe U.S. auto industry. And those

suppliers expect carmakers to churnout a couple million more vehiclesthis year than they did in 2010, withthe anticipated boost in business already in gear.

“We can’t keep up with our Fordorders, cars and trucks alike,” saidJerry Zeitler, president of Die-Matic

Corp. in Cleveland, which stampsout precision metal parts for automakers and their suppliers.

Ford not only ends up with someof Mr. Zeitler’s parts in its cars andtrucks, but it also has been the mostsuccessful U.S. automaker in termsof increasing its sales and produc-tion. That performance, in turn, iscreating a ripple effect that benefitslocal suppliers such as Die-Matic.

In 2010, Ford sold 1.935 millioncars and trucks in the United States,

up 19% from 1.62 million in 2009.Its ever-popular F-series pickuptrucks led the way, with a sales increase of 27.7%. All told, the company sold 696,918 cars, 723,304trucks, and 515,240 SUVs andcrossovers in 2010.

Those sales help suppliers inNortheast Ohio such as Die-Maticand provide job security for Ford’slocal work force. The latter includesmore than 600 workers at Ford’sBrook Park engine plant, where a

second shift was added last monthto make more of the plant’s Eco-Boost engines.

A popular pickupBut many local suppliers, including

Mr. Zeitler, don’t just sell to Ford,and other automakers are experi-encing a pickup in sales, too.

U.S. auto sales went into theditch in 2009, when they hit a 27-year low of 10.4 million units. The

MAKE A DIFFERENCE In our May 16 issue, Crain’s will present Difference Makers,

a special section in which we’ll profile 10 individuals whohave made significant, long-term contributions to the better-ment of Northeast Ohio.

We’re asking readers to help us identify potential profilees.As part of that process, we’ve provided an online nomina-

tion form at www.CrainsCleveland.com/nominate. Nominations also can be submitted via e-mail to editor MarkDodosh at [email protected]; please include “DifferenceMakers nomination” in the subject line. In addition, they canbe sent via regular mail to Mr. Dodosh at 700 W. St. ClairAve., suite 310, Cleveland 44113.

Nominations should be no longer than a single page. Thedeadline for nominations is the close of business on Monday,Jan. 24.

See AUTO Page 6

See BANKS Page 17

Banks mobilizingbusiness loan troopsas economy stirs

DROP THE DESKTOPMore organizations virtualize computer stations,

enabling users to access software remotely

By CHUCK [email protected]

Most of the employeeswho will populate thenew University Hospi-tals Ahuja Medical Cen-

ter will work on computers shapedlike tissue boxes.

They won’t be alone: A growing

number of companies and organi-zations in Northeast Ohio are workingto “virtualize” their desktops, andeven more are thinking about it.

For University Hospitals, theAhuja Medical Center is just the beginning. The hospital system plansto replace most of its personal com-puters with those “tissue boxes” —

See DESKTOP Page 10

20110110-NEWS--1-NAT-CCI-CL_-- 1/7/2011 4:03 PM Page 1

% output change % change % change inper hour worked in output hours workedCountry

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 10 - 16, 2011

REGULAR FEATURES

CORRECTION

Best of the Blogs .........19Classified ....................18Editorial ........................8Going Places ...............12Letter............................8List: NE Ohio’s top SBA lenders .....................16

Reporters’ Notebook....19The Week ....................19What’s New..................19

COMINGNEXT WEEK

There was no shortageof news stories in North-east Ohio in 2010, fromthe election of CuyahogaCounty’s first executiveto a top banking leaderwho was promoted toCEO, becoming the firstwoman in that position at a top 20 U.S. bank.Next week we explorethe region’s top news-makers of 2010.

A big deal

Audit Bureauof Circulation

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

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

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

Crain Communications Inc.

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

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

Cartoonist/illustrator: Rich Williams

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

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

Office coordinator:Toni Coleman ([email protected])

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

Graphic designer:Kristen Wilson ([email protected])

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

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

Daniel Hurwitz is president and CEOof Developers Diversified RealtyCorp. Mr. Hurwitz’s first name was incorrect in the Jan. 3 “Year in Review” section.

U.S. 7.7 -5.9 -12.6

Taiwan 4.8 -4.4 -8.7

Australia 4.4 -2.3 -6.5

South Korea 1.8 -1.6 -3.4

France -7.2 -11.2 -4.3

Germany -9.3 -18.2 -9.8

Japan -11.4 -22.0 -11.9

% change in manufacturing output, 2008-09

KEEPING BUSYAmerica’s manufacturing sector remained more productive than any other industri-alized country during recession-plagued 2009, according to new data compiled bythe U.S. Bureau of Labor Statistics. The United States posted a 7.7% gain in manu-facturing output per hour in 2009 from 2008, far ahead of the next-best performer,Taiwan, at 4.8%. Japan had the worst productivity, with a decline of 11.4%. Here’show some countries fared in 2009:


Todd F. Clossin, whoalso works out of Cleve-land and is regional presi-dent over eight Fifth Thirdmarkets in Ohio, Florida,Pennsylvania and NorthCarolina, served simulta-neously as Northeast OhioCEO for six years, untilnow.

“It really didn’t fit any longer forme to try to carry a (regional) CEOjob,” Mr. Clossin said, noting that

he spends five or six business days amonth in Cleveland and travels therest.

“Now with Jerry on board, wethink we’ve got the right person, theright place, at the right time to reallycapitalize on growth expectations,”Mr. Clossin said. “Jerry’s wellknown to this part of the state. Hehas a lot of experience here.”

Mr. Kelsheimer was president ofthe Greater Cleveland region for

JANUARY 10 - 16, 2011 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT

THE WEEK IN QUOTES“We’ll grow by 42% or43% this year. It’s justbeen a phenomenalyear — our majorcustomer sells to Ford,and Ford is just doingfantastic.”— Mark Swanson, head of salesfor Preform Sealants of Twins-burg. Page One

“Banks are flush withdeposits, and they’relooking for places toinvest those deposits.”— Fred Cummings, president ofElizabeth Park Capital Manage-ment. Page One

“My biggest regret isthat there aren’t morehours in the day as wehave so many fabulousopportunities to growour business.”— Toby Maloney, vice presidentof business development, mental_floss. Page 13

“Most of our productscome from overseas,and everybody likedthem, but we felt …people wanted thingsmade locally.”— Bret Faber, Geared for Imagination, Fairlawn. Page 13

Deadline loomsfor Revol torefinance debtBondholders may take control of wirelessprovider after merger deal fails to proceedBy CHUCK [email protected]

Revol Wireless will have newowners if it doesn’t refinance $150million in debt before April 30.

After missing a Dec. 15 deadlineto pay off the debt, the Indepen-dence-based provider of wirelessphone service on Dec. 30 struck adeal with its bondholders that givesthe company until April 30 to com-plete a refinancing. If Revol fails, thebondholders will take control of thecompany, Revol chief operating officer Scott Bergs said.

Such a transfer would allow Revolto continue operating without filingfor Chapter 11 bankruptcy protec-tion, though Mr. Bergs noted thatbankruptcy would not be the com-pany’s only option in that situation.

“We’re pleased that the refinancinghas not become a barrier … to oper-

ating,” Mr. Bergs said.Revol, which is incorporated as

Cleveland Unlimited Inc., long hasbeen planning to refinance the debt,Mr. Bergs said. Those plans wentawry, however, because of uncer-tainty facing an affiliated company,Honolulu-based Coral Wireless,which does business as Mobi PCS.

To make the refinancing attrac-tive to lenders, Revol had planned tomerge with Mobi PCS, which provideswireless service in Hawaii. Thecompanies share a CEO, Bill Jarvis,and both have received investmentsfrom M/C Venture Partners in Bostonand Columbia Capital of Alexan-dria, Va.

However, a regulatory issue inHawaii could do serious harm toMobi PCS’s income stream, accordingto a letter Mr. Jarvis sent to theHawaii Public Utilities Commission.

See REVOL Page 9

See CEO Page 9

Fifth Third names veteran Cleveland banking exec as local CEOKelsheimer joined company six months ago, served in Cincinnati

By MICHELLE [email protected]

Less than six months after joining Fifth Third Bank, JerryKelsheimer has been promoted toaffiliate president and CEO ofNortheast Ohio, a role similar to theone he once held at competitorHuntington National Bank.

Starting today, Jan. 10, Mr.Kelsheimer is in charge of FifthThird’s Cleveland, Canton and Akronmarkets, overseeing 850 employeesand 84 branches. The promotionmeans a business relocation for Mr.Kelsheimer, 44, from the bank’sCincinnati headquarters to itsCleveland office.

A 22-year banking veteran, Mr.

Kelsheimer fills a positionthat’s similar to, but carriesmore duties than, the postpreviously held by TomPartridge; the latter wasFifth Third’s market pres-ident of Northeast Ohiobefore leaving in July after a year onthe job to become affiliate presidentand CEO of Fifth Third in Kentucky.

Kelsheimer

ZUMA PRESS

Cleveland State senior and leading Horizon League player of the year candidate Norris Cole reacts during the Vikings’69-62 win over South Florida at the Wolstein Center on Dec. 22. The game drew 4,711 fans, Cleveland State’s biggestcrowd of the season and about 2,300 over the team’s season average.

SOMETHING TOSHOUT ABOUT

Cleveland State’s men’s basketball team is hot, and school officials hope new initiatives lure more fans to campus

By JOEL [email protected]

Cleveland State’s men’s basket-ball team has the look of aMarch Madness darling, but sofar its winning ways haven’t

translated into more fans in the standsat most Vikings’ home games — thoughschool officials are working on keepinga recent uptick going.

The Vikings, 15-1 overall and 4-0 inHorizon League play entering last Fridaynight’s showdown at perennial power-house Butler, rank fifth in the league inhome attendance, at 2,419 fans pergame — essentially unchanged fromprevious years.

Putting butts in the seats is a strugglethat coach Gary Waters — who turnedaround Kent State’s program in the late1990s and set the stage for the Flashes’Elite Eight run in 2002 — has attributedto Cleveland being a pro town.

HORIZON LEAGUE ATTENDANCE

Cleveland State ranks fifth in the 10-team Horizon League in averagehome attendance through the Vikings’first 10 games. Listed below is eachteam’s home average through gamesas of last Wednesday night, with thenumber of home games they’veplayed in parentheses.

1. Butler (6)....................................7,0332. Wright State (8) ..........................3,9173. Valparaiso (5) ............................3,6014. Wisconsin-Milwaukee (7)..............3,5305. Cleveland State (10) ............2,4196. Loyola (9) ..................................2,3777. Illinois-Chicago (5) ......................2,3748. Wisconsin-Green Bay (6)..............2,3619. Detroit-Mercy (8) ........................2,08910. Youngstown State (7) ..............1,743

SOURCES: SCHOOL WEB SITESSee CSU Page 16



CLOSED

Terry Coyne, SIOR, CCIM

15 in

31

Six Sigmaand LeanAdvantage

The

Where There is Adversity, There is Opportunity.

“Save 10 times the cost of the

class in reduction of scrap,

downtime, returns, and

rework.” –

Dan Sommers,

Six Sigma Master Black Belt.

For more information or to register for the breakfast or courses, call 1-800-995-5222 (extension 7003), or visit www.lorainccc.edu/sixsigma

LCCC is conveniently located in Elyria and is easily accessible from interstates 90, 480 and the Ohio Turnpike.1005 N Abbe Rd, Elyria, Ohio 44035

To learn more about Six Sigma and Lean certification training, join us for a free breakfast presentation from

7:30-9 a.m., Thursday, January 27 at Lorain County Community College’s Entrepreneurship Innovation Center.

Six Sigma

Green and

Black Belt

training

programs

begin in

February

at LCCC.

Volume 32, Number 2 Crain’s Cleveland Business(ISSN 0197-2375) is published weekly, except forcombined issues on the fourth week of May and fifthweek of May, the fourth week of June and first weekof July, the third week of December and fourth weekof December at 700 West St. Clair Ave., Suite 310,Cleveland, OH 44113-1230. Copyright © 2011 byCrain Communications Inc. Periodicals postage paidat Cleveland, Ohio, and at additional mailing offices.Price per copy: $1.50. POSTMASTER: Send ad-dress changes to Crain’s Cleveland Business, Cir-culation Department, 1155 Gratiot Avenue, Detroit,Michigan 48207-2912. 1-877-824-9373.

REPRINT INFORMATION: 800-290-5460 Ext. 136

Next UH strategic plan willfocus more on operations

Philips scanners log better image, release less radiation By CHUCK [email protected]

High-def doesn’t need to meanhigh dose.

Philips Healthcare has releasedthree CT scanners that include itsiDose technology, which uses soft-ware to improve image quality whilereducing patients’ exposure to radi-ation.

Getting a better image in the pastoften meant exposing the patient to a higher dose of radiation, said Dominic Smith, vice president ofglobal marketing and clinical sciencefor Philips’ computed tomographyand nuclear medicine businesses,which are based in Highland Heights.

To get around the problem, variousglobal makers of CT scanners havedeveloped scanners capable of “iterative reconstruction” — amethod that uses software to removeso-called “noise” from images created

using lower doses of radiation.The software requires heavy pro-

cessing power, so Philips equippedits new scanners with Intel chipsetsmore powerful than 50 PlayStation3 gaming consoles, Mr. Smith said.

An added benefit of all thathorsepower is that the scannersproduce images faster. Mr. Smith saida scanner with iDose can producean image of a full body scan in 93seconds. The process previouslytook 15 to 20 minutes.

Philips has big plans for iDose:Whereas the company usually incorporates new technologies intoits most expensive scanners first,iDose has been included in the Ingenuity CT, a mass market product.

Philips’ goal is to incorporateiDose into its entire scanner lineup,Mr. Smith said. He would not giveprices for the scanners but said theywill be more expensive than theywould have been without the tech-

nology, which Philips spent “tens ofmillions of dollars” developing inHighland Heights and elsewhere.

Scanners with iDose will include adial that allows physicians to chooseone of three settings: One exposespatients to 80% less radiation thanprevious Philips scanners withoutharming image quality; another reduces radiation by 50% while alsoboosting spatial resolution by 35%;the third increases resolution by68% without lowering the dose.

Philips isn’t aloneThe other four major CT scanner

makers — General Electric, Siemens,Hitachi and Toshiba — have devel-oped similar technologies.

For instance, Hitachi Medical Sys-tems America Inc., based in Twins-burg, is seeking federal approval tobegin selling CT scanners equippedwith an iterative reconstructiontechnology called Intelli IP, said

Mark Silverman, manager of CTmarketing. The company, however,does little research and develop-ment at its Twinsburg office, whichemploys a few hundred people.

Although scanner makers havebeen developing radiation reductiontechnology for decades, they’ve pickedup the pace lately, Mr. Silverman said.

“There’s been kind of an addedemphasis for the last three or fouryears,” he said.

Radiation from CT scans hasbeen a growing public concern. Forinstance, one 2007 study published

in the New England Journal of Medicine stated that up to 2% of allcancers in the United States mightbe caused by radiation from CTscans. The American College of Ra-diology disputes those findings, asdoes Dr. Robert “Chip” Gilkeson,director of cardiothoracic imagingand vice chairman of clinical re-search at University Hospitals CaseMedical Center.

Regardless, Dr. Gilkeson sees theimportance of reducing the amountof radiation to which patients un-dergoing CT scans are exposed. ■

By TIMOTHY [email protected]

Now that University Hospitals’$1.2 billion renovation and expan-sion initiative known as Vision 2010is nearly complete, CEO ThomasZenty says it’s time to figure out howbest to leverage the health system’svast new resources and how to capi-talize on its existing ones.

Starting this year, University Hos-pitals will embark on a three-yearstrategic plan. Mr. Zenty said all thedetails or final price tag aren’t yet inplace, but he noted the three-yearplan will be operational in focusrather than another major capital investment program like Vision2010. The latter plan resulted in Uni-versity Hospitals’ new $298 millionAhuja Medical Center in Beachwoodand $260 million Seidman CancerCenter on Euclid Avenue.

Strategic plans typically are designed for five-year spans, Mr.Zenty said, but because of all theambiguity surrounding health carereform, particularly with the seatingof the new Congress, it was logical toimplement a plan more modest inscope. For example, the new Repub-lican-controlled House of Represen-tatives is scheduled this Wednesday,Jan. 12, to vote to repeal the healthcare legislation that was passed lastspring, even though it’s unlikely theDemocrat-led Senate would follow suit.

“In the face of health care reformand the uncertainty going on with it,it’ll be prudent for us to take care ofthe patients to the best of our ability,”Mr. Zenty said.

The motivation behind the strategicplan, Mr. Zenty said, is to create afully integrated system of care andimprove quality throughout the hospital network. A large componentof that initiative will be the furtherexpansion of University Hospitals’electronic medical records.

Ahuja Medical Center’s electronicmedical records system is scheduledto go online early this year, and theUH system’s 18 outpatient facilitiesare scheduled to go online over the next18 months — an effort that’s slatedto cost an estimated $150 million.

Going forward, Mr. Zenty said thesystem will figure out how best to integrate electronic medical recordsinto University Hospitals’ vast physi-cian network, which he noted wouldbe “no small undertaking.”

University Hospitals officials overthe next three years also will chipaway at reaching the goal of thehealth system’s $1 billion fundraisingcampaign, which went public lastNovember but quietly has beenbuilding since 2003.

So far, University Hospitals hasraised $694 million from about 50,000contributors, according to SherriBishop, the organization’s chief development officer. A $42 milliongift from Jane and Lee Seidman — thelargest in the University Hospitals’nearly 145-year history — kicked offthe public phase of the campaign.

The hope, Mr. Zenty said, is toraise the rest of the $1 billion totalover the next three years or “as soonas possible.”

To raise those remaining dollars,Ms. Bishop said the system’s seniorleadership team, including Mr. Zenty,has been meeting with donors indi-vidually at roundtables to share thesuccess of the Vision 2010 project.

“When they give, we help themunderstand the impact of their giv-ing,” Ms. Bishop said. ■



Developer shells out $9M for prime real estate

industry came back in 2010, as salesincreased by about 11% to 11.6 million units, but more improve-ment should come this year as theindustry slowly continues to rebuildits stature.

Ford is estimating U.S. industryvehicle sales this year will be in therange of 12.5 million to 13 million,which is music to the ears of autosuppliers.

“We’ll grow by 42% or 43% thisyear. It’s just been a phenomenalyear — our major customer sells toFord, and Ford is just doing fantastic,”said Mark Swanson, head of salesfor Twinsburg-based PreformSealants, a small supplier of cork,paper and foam gaskets used in theauto industry.

Just about every car company selling in the United States has seenits sales increase. Mr. Swanson saidabout a quarter of his products ulti-mately end up in Ford vehicles, buthe’s also selling more to suppliers ofChrysler and General Motors,where he’s also seeing business pickup.

Steve Campbell was named pres-ident of Cleveland auto supplierPrestolite Performance just lastweek, but he’s been in automotivefor 30 years. He said a broad rangeof auto parts makers saw their salesincrease in 2010 for the first time inmany years, including those likePrestolite that make performanceand replacement parts for the autoaftermarket. People not buying newcars must buy parts to maintaintheir older vehicles, he said.

“In 2010, manufacturers and sellersof brake pads, fluids, batteries andperformance parts had their bestyear in at least a decade,” Mr.Campbell said.

Once burned … Among the automakers them-

selves, only recall-plagued Toyotasaw its sales decline in 2010, by0.4%, to 1.76 million units.

The industry scenario has playedout well for Northeast Ohio, whichhas a larger stake in the Big 3 domes-tic automakers than it does in Toy-ota or other foreign transplants thatdo not buy as many of their parts in

this region. It’s a phenomenon thathas worked against the region in thepast, but appears to be working in its favor now that domestic automakers are on the offensive.

Not that there isn’t some lingeringskepticism and worry among autosuppliers. Auto sales picked up forthe first time since 2005 last year,and it appears they will strengthenfurther in 2011 — but some wonderwhether the trend can be sustained.That concern could be one reasonmany manufacturers, including autosuppliers, have not been aggressive inhiring more full-time workers inspite of a rebound in their business.

Ever cautious, Die-Matic’s Mr.Zeitler says he’d love to see a strongpickup in sales this year, but he isn’t convinced it will happen justyet — at least not to the point someoptimists are predicting.

“I suspect the auto industry willbe up slightly in 2011,” he said,though he notes, “Again, I’m baffledby the numbers.”

Mr. Zeitler still worries that saleswill be weighed down by high unemployment, foreclosures andtight credit. And he said he still remembers all too well the situationin December 2008, when he shutdown as usual for the Decemberholidays, only to have a rude awak-ening when he started up again inJanuary amid an economy thatrapidly had tanked.

Holding the jobs lineSo far, Mr. Zeitler and other

suppliers are seeing continued improvement in the auto industry,as well as in the economy generally.They hope those trends hold upthroughout the year, especially inthe automotive sector, where therehave been consistent estimates forU.S. vehicle sales of about 13 millionthis year.

“That number sounds about rightto us,” said Kevin Cleary, presidentof Cleveland-based Soundwich, amaker of heat- and sound-shieldingmaterials used in automobiles.

But, like many suppliers, Mr.Cleary said he has learned to domore with less and to react morequickly to market changes in thelast two years. ■

continued from PAGE 1

Auto: Some suppliersproceed with caution

By STAN [email protected]

Seizing a downtown Clevelandreal estate opportunity that the advent of casino gambling promisesto enrich, developer and parking lotproprietor Louis Frangos is the newowner of most of a key block nearQuicken Loans Arena and Progres-sive Field.

It’s the first appearance of big-league bucks — $9 million —trying to stake out ground near thepotential temporary casino at theHigbee Building and the plannedcasino to be built on Huron Roadsouth of Tower City Center.

In a series of four transactions —the last as recent as last Monday,Jan. 3, and the oldest dating to November — a partnership linkedto Mr. Frangos, USA Parking Sys-tems Prospect LLC, shelled out a totalof $9 million for most of the blockon the southeast corner of OntarioStreet and Prospect Avenue.

The properties include two build-ings: the former home of Myers

College, 112 Prospect, and the for-mer Daughters of St. Paul Bookstoreat 2105 Ontario, now the law officesof Stafford & Stafford. The purchasesalso include parking lots at Ontarioand High Street near a city-ownedparking garage next to the sportscomplex.

Through his administrative assis-tant, Mr. Frangos, president of USAParking Co., declined comment.

Although Mr. Frangos trans-formed a boarded-up building at1104 Prospect Ave. to the ProspectPlace Apartments, he mainly hasbought buildings and razed them toserve as surface parking lots or haspurchased empty sites for use as parking. Previously, most of hisacquisitions were in the easternshadow of Progressive Field andsouth of the downtown Theater Dis-trict.

Rock Gaming, the company created by Cleveland Cavaliers own-er Dan Gilbert to develop casinosin Cleveland and Cincinnati, mayopen a temporary casino later thisyear in the Higbee Building, diago-

of Downtown Cleveland Alliance andexecutive director of the HistoricGateway Neighborhood, said theneighborhood group is workingwith the Maloofs to keep the build-ing from being condemned becauseit still can be restored to new use.

Mr. Yablonsky said Historic Gate-way’s master plan calls for buildingson the corner to be maintained andrehabilitated similar to the wayMRN Ltd. has redeveloped the near-by East 4th Street Neighborhood asrestaurants, entertainment venuesand lofts.

The former Myers College building,also known as the Columbia Building,was owned by Mr. Maloof until Myers predecessor Dyke College acquired it. USA Parking paid $1million to Columbia Prospect LLC,the corporation that held the 1909-vintage structure, on Nov. 15, according to land records.

Stafford brothers do well

A clear winner among the formerproperty owners are brothersJoseph and Vincent Stafford.

The two acquired the former St.Paul Catholic bookstore property in2005 for $1 million. Land recordsshow USA Parking paid theStaffords $5.9 million on Dec. 17.

In a phone interview, VincentStafford called the sale a “win-win”for the brothers, who are well-known as tough divorce lawyers,and the community.

Vincent Stafford said he and hisbrother are looking for anotherproperty to buy in downtownCleveland to help kindle additionaldevelopment. He said the firmneeds at least 20,000 square feet ofoffice space for its 30-person staff.

“Certain things fell into line forus,” he said. ■

nally across from the sites Mr. Fran-gos’ partnership snatched up, and ithopes to build a permanent casinoby 2013. The Ontario-Prospect areawould need more parking if the casino proves the magnet gamingadvocates hope it will be.

And then there was one …Only one property on the block —

the Stanley Block Building at 2121Ontario, which dates to 1874 — stillisn’t owned by Mr. Frangos.

Macron Investment Co., a part-nership controlled by downtownproperty investor George Maloof,owns the Stanley Block. However, apartnership controlled by theGeorge and Nora Maloof FamilyLimited Partnership sold one of theadjoining High Street parking lots toUSA Parking for $1.5 million lastMonday, Jan. 3. Another smaller par-cel used for parking was sold to USAParking by Halkal Investments LLC,a Lakewood investment firm, for$875,000 on Jan. 3. The parking lotscan hold about 60 cars, according toaerial photos of the site.

The city of Cleveland has con-demned the boarded-up StanleyBlock Building for violating fire safetycodes and a lack of safe stairs. TomYablonsky, executive vice president

Deal for properties near temporary casino suggests Frangos aims to capitalize on location


Ted Strickland and John Kasichare veteran politicians. Bothserved in the U.S. Congress before they were elected as

Ohio’s chief executive. Both seem to besmart, energetic and intellectually engagedin their chosen field of public service.

Why, oh why, then, do they do and/orsay such dumb things?

Take Mr. Strickland, the one-term Democrat forced to leavethe governor’s office by Mr. Kasich, a Republican. In his 60s,Mr. Strickland seems to haveplenty of enthusiasm left forpublic service, and it’s beenspeculated that he might evenrun for governor again.

So then explain to me why hetakes the opportunity in a lengthyrecent interview with The Plain Dealer tocomplain about its coverage and how ittainted the public’s view of the man fromAppalachia and his administration’swork on behalf of Ohio’s cities.

That was a bad move for a couple rea-sons. First, it’s a valid criticism that his

administration’s bad moves were inlarge part why his re-election effort faredso poorly in Cuyahoga County, andprobably why he lost the election. Second, it gave the newspaper a reason,in a subsequent editorial, to enumerateall the ways the Strickland administra-tion messed things up in Northeast

Ohio, the state’s largest con-centration of urban centers.

Then there’s Mr. Kasich, thegovernor-elect who rode a tideof voter disgust with the Democrats’ nationally force-fed reforms to a statewidesweep by the GOP. One of thefirst things he did was attemptto keep reporters out of his offi-cial swearing-in ceremony, aswell as most inaugural events.

“I think there’s a lot of people that aregoing to come to my event (the swearing-in, originally scheduled for his privateresidence) that don’t want you sticking anotebook and pencil in their face,” hetold reporters. I heard a radio interviewin which he defended restricting access to

inaugural events because he didn’t wantto see reporting about “how some manor woman maybe drinking a little toomuch or is a bad dancer.”

I expect more from those who wouldlead our state. I want someone with athick skin who can absorb criticism. Iwant someone who has a sensitivity to theneed for openness in government and arespect for the news media’s role as theeyes and ears of the voters.

Remember when Browns fans used tolong for a quarterback with Vinny Tes-taverde’s body and Bernie Kosar’s brain?I’d like a governor with Dick Celeste’scoolness and Mike White’s drive. Gov.Celeste had a vision for Ohio and didn’tlet his critics faze him. Mayor White letevery criticism bother him, but had im-mense skills as an orator and leader.

We can only hope that Ted Stricklanduses his “off time” to do an honest assess-ment of his administration’s record, andthat our new governor learns to temperhis inclinations in order to rally the sup-port he will sorely need to survive Ohio’slooming financial firestorm. ■


Best policyT

he late, great vaudeville comedian andmovie star W.C. Fields is credited with coining the phrase, “You can’t cheat an honest man.” Others will cheat no matter

what — but that shouldn’t stop new CuyahogaCounty Executive Ed FitzGerald from setting ethicalstandards for county employees and for the vendorsthat do business with his government.

The federal government’s ongoing public corrup-tion investigation in Cuyahoga County shows theneed for someone to draw the line between what isacceptable conduct in county government businessdealings and what is not. Mr. FitzGerald is that some-one, and within an hour of his first day on the joblast week, he issued an executive order to make formal his commitment to ethics reform in the county.

As Crain’s government reporter Jay Miller wrotelast Monday, the new ethics policy requires all countyemployees to receive ethics training and to agree toand sign an ethics policy statement. The policy forbidscounty employees from soliciting or accepting any-thing of value — for themselves or for family members — that would influence their official duties.

The new policy also says county employees have aduty to report any wrongdoing, fraud or unethicalbehavior they observe among county employees andvendors doing business with the county. This lastadmonishment may be the most important, becausethere always will be people who won’t play by therules but will try to work the system for their own gain.

Offenders won’t blow the whistle on themselves;however, other employees and/or vendors often areaware of the back scratching and palm greasing thatoccurs. Still, as the unfolding corruption investiga-tion has revealed, people routinely don’t speak upeven though they may know of or strongly suspectunethical behavior in their midst.

This “see no evil, hear no evil, speak no evil” mentality must be abandoned if the self-policingpart of Mr. FitzGerald’s policy is to work.

Business also must adhere to a higher standard, apoint Mr. FitzGerald reinforces with his plans for avendor code of conduct.

“A vendor will have an affirmative duty to report ifthey are asked for anything of value from a countyemployee,” Mr. FitzGerald stated last week.

Steve Dettelbach and Toby Cosgrove recognizesome business people aren’t saints when it comesto the buyer-vendor relationship. That’s why Mr.Dettelbach, the U.S. Attorney in Cleveland, and Dr.Cosgrove, CEO of the Cleveland Clinic, have takenactive roles in soliciting Northeast Ohio businessesto sign a pledge to reject corruption and unethicalconduct in their business affairs.

Just last month, the Clinic played host to the firsttraining seminar of the Northeast Ohio BusinessEthics Coalition. As Dr. Cosgrove said at the time, hebelieved it was important for the Clinic, as the area’slargest employer, to take a lead role in cleaning upthe region’s tarnished image.

“Good ethics is good business,” he said.It’s also good for the Northeast Ohio economy,

which is why we implore business people to listento their higher angels and do what’s right, notwhat’s self-serving.

FROM THE PUBLISHER

LETTER

BRIANTUCKER

Ted’s sorry exit, and John’s bad start

EPA missteps lead to rise in sewer bills ■ I call upon the new U.S. Congress, theOhio Legislature and the new CuyahogaCounty Executive and County Council tofight in concert against the power of theEnvironmental Protection Agency, bothfederal and Ohio.

Here in Ohio, the larger cities andsewer districts are being pushed to makebillion-dollar settlements with the EPAfor the handling of sewage. The EPA hasbeen suing cities and regional sewer dis-tricts and forcing these huge settlements.The Clean Water Act of 1977 is the legalbasis for these actions, but for the last 33years, our citizens have dutifully paidtheir water and sewer bills while thosewho manage these systems and thepoliticians to whom they answer sat ontheir hands and did absolutely nothingabout changing the law, or complyingwith it. Their endemic inaction has leftthe citizens unfortunate enough to live

in these sewer districts holding a hugebag they may not be able to even lift.

Citizens are going to see a doubling ortripling of their sewer bills over the nextfew years because of this. In the currenteconomic climate, this will cause the financial ruin of many people, includingmany retirees on fixed incomes.

Yet no one says a thing about the factthat the politicians in our area have frit-tered away billions of public dollarssince 1977, when the Clean Water Actwas passed, rather than dealing with theproblem responsibly and proactively.Something must be done, and it must besoon, or people are going to really gethurt by the monolithic, omnipotentOhio and U.S. EPAs.

Our elected leaders can do severalthings to remedy this awful situation:

1. Notify the U.S. EPA that our sewerdistrict will not be entering into any con-

sent decrees with either EPA in the fore-seeable future.

2. File lawsuits against the EPAs for violation of constitutional limitations ofauthority.

3. Sue the Board of Cuyahoga CountyCommissioners for dereliction of dutyfor failing to direct the Northeast OhioRegional Sewer District to make infra-structure improvements to comply withthe Clean Water Act of 1977.

4. Introduce legislation prohibitingthe EPAs from forcing sewer districtsinto these settlements.

There may be other strategies availableto our elected leaders to fight against thisunconscionable usurpation of our wealthand power. I would ask concerned citizensto contact their elected representative at alllevels and demand action immediately.Henry T. HoltkampRichfield

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION


Revol began negotiations with itsbondholders when it appeared theregulatory issue wouldn’t be decided before the $150 millioncame due. The company, foundedin 2005, took on the debt roughlyfive years ago, Mr. Bergs said.

“It’s (like) a classic home loanwith a balloon, and we fully antici-pated refinancing before the ballooncame about,” Mr. Bergs said.

The company is exploring thepossibility of trying to refinance itsdebt without merging with MobiPCS, but in the meantime it’s waitingfor the Hawaii Public Utilities Com-mission to make a decision that couldimpact Revol’s sister company.

Wireless provider T-Mobile hasapplied for the right to receive federal money that Hawaii gives tophone companies that serve ruralareas. The Federal Communica-tions Commission in 2008 put atemporary cap on the size of eachstate’s allotment, so any money T-Mobile receives likely wouldmean less revenue for Mobi PCSand two other companies approvedto serve rural areas in Hawaii.

In a phone conversation withCrain’s Cleveland Business, HawaiiPUC chairman Carlito Caliboso

gave no indication as to when thecommission would decide on T-Mobile’s application.

“There’s no expressed timeline,but we’re working on it,” he said.

Moody’s reactsMoody’s Investors Service down-

graded Revol’s credit ratings after it missed the Dec. 15 payment. For instance, its corporate family ratingfell two notches to Ca — which is assigned to debt in or near default— from Caa2. The new rating reflects Moody’s expectation thatsecured lenders would receive “atleast an average recovery (50%) in a bankruptcy or restructuring sce-nario,” according to a report the ratings firm released Dec. 23.

The ratings reduction also reflectsRevol’s “weak operating perfor-mance, including subscriber lossesand high churn,” the report stated.The company’s annual revenue isabout $135 million, according to thedocument.

Mr. Bergs said Revol’s perfor-mance was not why the companywas unable to refinance its debt. He would not comment on theMoody’s report, but he said he ishappy with Revol’s performance.

He noted that Revol in August

Huntington National Bank untilJuly. Fifth Third officials declinedcomment on whether Mr. Kelsheimerhad signed a non-compete agree-ment with Huntington.

At Fifth Third, Mr. Clossin noted,local staffers and business lines report to their affiliate leaders, notheadquarters or elsewhere. Thatempowerment of the local teamwas one reason Mr. Kelsheimer wasattracted to the position.

Strategic moveFifth Third first hired Mr.

Kelsheimer in late August to directstrategic planning in five regions.The way Mr. Kelsheimer “assimilated”into the role and the insight he provided early in his time as man-aging director for strategic planningconvinced Mr. Clossin he was theright man to lead Northeast Ohio,Mr. Clossin said.

“He really impressed me assomebody who clearly has goodhands-on operational skills,” he said.

Working in strategic planningfirst, Mr. Kelsheimer said, betterprepared him for his new role atFifth Third because it enabled himto become familiar with the companyculture and to connect with FifthThird leaders in multiple geographicmarkets.

“The transition into the (regionalCEO) role itself feels a natural one tome,” he said.

The market president role inCleveland, Mr. Clossin said, hadbeen used as a development role forFifth Third affiliate presidents. Mr.Clossin said he made the decisionto transition presidents through

Cleveland no longer because he believes there’s a need for a long-time CEO in this marketplace.

The Northeast Ohio region, hesaid, is regarded as one of the topaffiliates in the company in terms offinancial performance. Fifth Thirdhas 19 markets.

“I think the marketplace and theindustry continue to change,” Mr.Clossin said, citing regulatorychanges. “I do think you’ve got to bemore nimble going forward. I thinkthat gets back again to having daily,on-site management running thebank.”

As CEO, Mr. Kelsheimer said hewill support the execution of thestrategic plan written for the marketplace. He said he could notshare specific initiatives, though hisvision includes adding infrastruc-ture and distribution points to capture market share. He’ll gaugehis success, he noted, on continuedgrowth, customer satisfaction andemployee engagement.

Mr. Kelsheimer continues to livein Westlake with his wife, Julie, andtheir four children. He is a directoron several boards, including Uni-versity Hospital Case Medical Center, United Way of Greater Cleve-land and Tri-C Foundation. ■

“You’ve got to be nimblegoing forward. I thinkthat gets back to havingdaily, on-site manage-ment running the bank.” – Todd F. Clossin, regional president, eight Fifth Third Bankmarkets


DARYL JOHNSONEuclidNo. You work hardthroughout the year. Youwork hard for your bene-fits. They’re entitled tothem like anyone else.

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

THE BIG ISSUEDo you think pay and benefits packages of public employees are too generous?

BRENT TEAGUEBrunswickMy wife’s a teacher. If youlook at pay packages,they’re not. But if you lookat benefits ... they don’thave to take the risk ofmanaging their retirementmoney like those of uswith 401(k)s.

GREGG CRESPYWestlakeNo. I’m a federal employeemyself. I believe anyone inthe public sector earnsless than they would in theprivate sector for thesame job.

MILO HEGERWestlakeNo. Government workersare not paid too much.Google the Office of Per-sonnel Management salaryschedules and see whatthey make — and thesalary is far less than inthe private sector.

FRIDAY, JANUARY 14TH, 20113:30 - 5:30 P.M. AFTERNOON CLASS SESSION 5:30 - 6:30 P.M. OPEN HOUSE RECEPTION

GEORGE S DIVELY BUILDING11240 Bellflower Road

Contact Information: Executive MBA [email protected]

For Open House details and to RSVP, please visit weatherhead.case.edu/emba/openhouse

EXECUTIVE MBA OPEN HOUSE *LEARN HOW WEATHERHEAD TEACHES THE ART AND SCIENCE OF LEADERSHIP.

EMBA WEATHERHEAD EXECUTIVE MBA

The Name To Trust

Ohio’s largest independent full-service commercial brokerNortheast Ohio based since 1939Local service and global expertise

216.861.7200www.omcle.com

1100 superior avenuecleveland, oh 44114


CEO: Early time with bankhelped new exec prepare


Revol: Analyst downgrades rating broadened its coverage to include almost all metropolitan areas withinthe United States, and that Revol’sservices now are sold at more than600 retailers across the nation, as opposed to just 390 last summer.

Revol in October 2009 announcedplans to lay off 17 people, and since thenthe company has cut the size of itsstaff to about 350 by attrition. Thecompany has employed roughly thesame number of people since at leastAugust, Mr. Bergs said. During an interview with Crain’s at that time,Mr. Bergs referred to subscriber lev-els as “stable.”

“We’re pretty pleased with the tra-jectory we’re on,” he said last week.

Mr. Bergs would not say last weekwhether the lower ratings fromMoody’s would hurt Revol’s effortsto refinance its debt. ■


referred to as “thin client” computers— over the next few years, said BradChilton, chief technology officer inthe hospital system’s informationtechnology department.

Those thin clients don’t do muchheavy lifting: Their main function isto serve as a connection betweenthe user’s monitor and servers thatrun the software, including operatingsystems such as Windows.

University Hospitals wants to virtualize its desktops for many ofthe same reasons other companiesand organizations cite. Desktop virtualization gave the hospital systema way to let employees access UHsoftware on home computers,smart phones or even their iPads,

which with special software canserve as a display for a Windowsdesktop running on a server. Thetechnology also should help thehospital system save money onhardware and computer mainte-nance, Mr. Chilton said.

“Everything that can go wrong isreally inside the data center,” hesaid.

Other organizations want to virtualize their desktops, too. Morethan half of the 70 informationtechnology executives who partici-pated in a survey conducted at theNortheast Ohio Software Associa-tion’s annual CIO Symposium in mid-November say they plan tovirtualize in 2011.

Interest in desktop virtualization

is on the rise partly because manycompanies are in the process of refreshing their computers, eitherbecause they delayed doing so during the recession or becausethey want to upgrade to Windows 7,said Jack Wilson, business directorat virtualization services firm Dynamix Technology Inc. of Parma.

The iPad is a big driver, too:Many top executives already ownthe tablet computers, and now theywant to use them to access the soft-ware their businesses use, Mr. Wil-son said.

“That woke up the executives towhat is possible,” he said.

Goal: Be ‘hardware agnostic’The popularity of the iPad and


China just called and you sold them your company

for three yuan and a hot dog. (oops)

FirstMerit for Better International ServicesOur international bankers guide you through transactions, avoid pitfalls

and maximize your international opportunities. China is just one important example of our global experience. For 165 years we’ve been increasing the opportunities for our business

partners in the communities we call home. We may even have a dinner recommendation in Beijing. Get FirstMerit and get more.

More Bank For Your Business™

Call Chris Pilkington, Manager of Foreign Exchange and International Sales, at 614-429-7440.

firstmerit.com


Desktop: Tablets, upgrades drive activity than thin clients and become obsoletesooner. In that scenario, the companyalso would save more than 40% oncomputer maintenance and support,Mr. Garlitz said. The savings are highbecause two-thirds of Forest City’s3,000-plus employees work outsideof its Cleveland headquarters.

“If I had a lot of people at one location I may use a different approach,” Mr. Garlitz said.

New York Community BancorpInc., the parent company of Cleve-land-based Ohio Savings Bank,plans to start virtualizing its desk-tops in 2011 as well. Doing so willhelp it quickly deploy company soft-ware, which will be particularly useful as the bank acquires othercompanies, according to an e-mailstatement from spokeswoman IleneAngarola. The system also will makeit easier for employees to work fromhome, she said.

The number of companies that already have virtualized their desk-tops is small but growing, saidLukasz Karapuda, sales engineer forOneLink Technical Services LLC ofWestlake. In addition to the release ofthe iPad and Windows 7, improveddesktop virtualization software alsois driving the trend, Mr. Karapuda said.

“Almost everybody is open tothis,” he said.

Large and midsize businesses aremore likely to pull the trigger,though, given the cost of implementingthe software and buying the neces-sary computing equipment, Mr.Karapuda said.

“For a small business there mightbe a hurdle as far as the up-frontcosts,” he said.

True believerFor Artisan Industries, however,

there was more than enough reasonto virtualize. The metalworkingcompany in Streetsboro finished the process in mid-2010, said chieffinancial officer Ken Quinn.

Before virtualizing, Artisan’s remote offices in Cuyahoga Heightsand Florida would connect to thecompany’s server in Streetsboro usingolder “terminal server” technology.Mr. Quinn said he wanted to throwthe old system into a retention pondin front of the company’s headquar-ters: It let remote employees accesssoftware running in Streetsboro, buttheir connections were extremely slowand often would fail.

The new system is far better, evenwhen running computer-aided design programs that need a lot ofprocessing power, he said.

“It’s paid for itself already,” hesaid, adding that the company spentabout $250,000 to make the switch.

The transition can cause prob-lems, though. Companies that makethe conversion need to remember todo plenty of training to prepare employees for the new system, saidMr. Chilton of UH’s IT department.Even if done right, it’s still hard tosupport new technology while phasingout old systems, he said.

Mr. Wilson, of Dynamix, said it’sparticularly important for compa-nies to virtualize as many of theirPCs as possible. He cited his past experience as chief information officerat Amerisure Mutual Insurance Co.:The Farmington Hills, Mich., com-pany not only had nine remote loca-tions with their own PCs and servers,but also different departments hadadopted various technologies overthe year that made life complex forthe IT department.

Virtualizing 100% of those com-puters removed the complexity, Mr.Wilson said. “If we had just done apiece it would be another layer oftechnology,” he said. ■

other consumer devices helped pushForest City Enterprises Inc. to beginrunning tests on desktop virtualizationtechnology last year, said Bruce Garlitz,director of IT infrastructure for theCleveland-based real estate giant.

Forest City is in the process of testing the technology with about100 employees. If the pilot goes well,the company likely will virtualizemost of its desktops in the secondhalf of 2011. Then the company willhave achieved its goal of becoming“hardware agnostic,” Mr. Garlitz said.

“Now, as an IT department, Idon’t have to tell you, ‘I’m sorry, youhave to use this. It’s all we support,’”he said.

Other factors also helped pushForest City to pursue desktop virtu-alization. The technology shouldsave the company more than 10% oncomputer hardware if it replaces almost all its PCs, which cost more


SWITCH TO TIME WARNER CABLE BUSINESS CLASS. WE GIVE YOU THESUPPORT YOU DESERVE AND A SOLUTION THAT FITS YOUR BUSINESS.At Time Warner Cable Business Class, we take your communication needs very seriously. That means you get personal attention, a range of options, and an Internet and Phone solution you can count on for the long term. Tired of the quick fix? Call us today.

New business customers only, with a minimum two-year agreement. Free WiFi service and discount on 10Mbps Internet service valid with purchase of one line of Business Class Phone with unlimited local and nationwide calling in the United States, Canada and Puerto Rico or one Business Class PRI. Additional unlimited local and nationwide long distance lines are $34.95 each per month. Additional Business Class PRI’s are available at $399 each per month. Savings based on comparison to standard 10Mbps Internet service price of $429.95. Standard installation rates and construction costs (if applicable) apply. Offer not transferable and may not be combined with any other offer. Business Class Phone and Business Class PRI does not include back-up power and should there be a power outage, Business Class Phone and PRI, including the ability to access 911 services, may not be available. Additional charges apply for taxes, fees, Directory Assistance, Operator Services and calls to international locations. Early termination fee may apply. Offer not available in all areas. Some restrictions apply. Expires 3/31/2011. Time Warner Cable Business Class is a trademark of Time Warner Inc. Used under license. ©2010 Time Warner Cable. All Rights reserved.

INTERNET | PHONE | CABLE TV | ETHERNET TWCBC.COM/ MIDWEST | 1.877.621.4276

GET FREE WI-FIand SAVE 60%

on 10M Internet when you add Phone.

upto



Lake Shore Insurance

© 2011 Safeco Insurance Company of America, Member of Liberty Mu tual Group, 1001 4th Ave., Seattle, WA 98154. All rights reserved.

HOME AUTOMOTORCYCLE

DO MORE.

THERE ARE PEOPLE WHO DON’T UNDERSTAND THE WAY YOU LIVE. THERE’S AN INSURANCE COMPANY THAT DOES.

I don’t see what the fuss

is about motorcycles.

So they’re supposed to

make you feel “free.”

I feel that way already.

GOING PLACESJOB CHANGESEDUCATIONCASE WESTERN RESERVE UNI-VERSITY: Suzanne M. Rivera to associate vice president for research. KENT STATE UNIVERSITY: Mary AnnStephens to dean, graduate studies. UNIVERSITY OF AKRON: RaviKrovi to dean, College of BusinessAdministration.

ENGINEERINGALPHAPORT INC.: Daniel Owens tochief technology officer.

FINANCECHARTER ONE: Mark Weber Jr. andTom Weiss to mortgage loan officers.

LORAIN NATIONAL BANK: Cheryl-Ann Madsen to vice president, commercial banking.

FINANCIAL SERVICE212 CAPITAL GROUP: Derrick W.Ransom to financial adviser. BCG & CO.: Stacy Collier to seniorassociate.CIUNI & PANICHI INC.: Anthony J.Constantine to manager, tax department.

HEALTH CARELUTHERAN HOME AT CONCORDRESERVE: Julie Swindell to wellnessdirector.

INSURANCEBRUNSWICK COS.: Connie Reeder

to personal lines account manager;Jessica M. Palivoda to commerciallines account manager; S. LewisPatrick to chief operations and financial officer. CBIZ BENEFITS & INSURANCESERVICES INC.: Chuck Adamczykto senior benefits consultant. HYLANT GROUP: Lou Ann Watsonto senior client service specialist; Andrea Stegmaier to client serviceassistant.MEDICAL MUTUAL: Lois Mann tomanager of underwriting, schools business unit; Kerry Smith to managerof underwriting, labor/governmentbusiness unit.

LEGALHAHN LOESER & PARKS LLP: BrianD. Kenney, Meghan E. Sheehan andChristopher W. St. Marie to associates.

TAFT STETTINIUS & HOLLISTERLLP: Majeed G. Makhlouf andPeter S. Nealis to partners.

MANUFACTURINGA. SCHULMAN INC.: Andrean R.Horton to senior corporate counsel,Americas.EATON CORP.: Brian Edwards tomanager, engine business unit, Aerospace Group.FAIRMOUNT MINERALS LTD.:Jenniffer Deckard to president. PSC METALS INC.: David Spectorto president; Mark Shapiro to executive vice president, non-ferrousproducts; Edward Lehner to chief administrative officer.

SWAGELOK CO.: Michelle Masseyto director, financial reporting and accounting; Jay Nordholt to director,fitting services group; Neil Smith to

director, quality and continuous improvement.

MARKETINGADCOM COMMUNICATIONS INC.:Jennifer Lombardi to art director;Doug Merritt to assistant account executive.

NONPROFITGREAT LAKES SCIENCE CENTER:Laura Klein Rayburn to campaign director. LUTHERAN HOME AT CONCORDRESERVE: Christine Saner to director of life enrichment.

TECHNOLOGYINFORCE TECHNOLOGIES LLC:Joseph Wilson to vice president,client services.

BOARDSGREATER CLEVELAND AUTOMOBILEDEALERS’ ASSOCIATION: BrianO’Donnell (Valley Auto Group) to chair-man; Daniel Sanders to first vice chair-man; Ed Babcock to second vice chair-man; Colin MacLean to treasurer.

AWARDSFASHION ART BIENNALE 2010:J.R. Campbell and Vincent Quevedo(Kent State University) received the International Artist of the Year Award. LAKE COMMUNICATORS: Phil Stella (Effective Training & Communi-cation) received the APEX Gold Awardfor Writing. OHIO HOTEL & LODGING ASSOCI-ATION: Michael Cooper (InterConti-nental Hotels Cleveland) received theManager of the Year Award; GaryMcGauley (Renaissance Cleveland)received the General Manager of theYear Award.

RETIREMENTCLEVELAND MUSEUM OF ART:Tom Hinson, curator of photography,after 38 years of service.

Send information for Going Places [email protected].

SmithMannConstantine

St. MarieSheehanKenney

HortonNealisMakhlouf

RayburnMerrittLombardi


Local company bosses share their resolutions for new year

SMALL BUSINESSI N S I D E

JANUARY 10 - 16, 2011 CRAIN’S CLEVELAND BUSINESS 13

14 TAX TIPS:LEGISLATIONLIKELY BENEFITSSMALL FIRMS.

N O R T H E A S T O H I OT OY M A K E R S : W H OT H E Y A R E A N D W H ATT H E Y M A K E

RUGGERO FATICA

Ryan Hamilton (left) and Bret Faber last fall developed their first toy idea, the Topozoo line of animals, seen below, manufactured by an Independence company.The founders of Geared for Imagination previously only distributed European toy lines.

NOT PLAYING AROUNDFor NE Ohio’stoy entrepreneurs,building a businessis more than just fun and games

By JOHN [email protected]

There’s nothing small aboutnext month’s American International Toy Fair:25,000 attendees are

expected at the Feb. 13-16 show inNew York, and the 2011 editionwill include 100,000 products frommore than 1,200 exhibitors.

But as several NortheastOhio toy innovatorsare out to prove, youdon’t have to be big tothink big — or to hit it big.

When Ryan Hamilton and

Bret Faber started Geared forImagination in 2009, they put theirshared toy industry purchasingand retail experience to work,founding the Fairlawn company asa distributor for European toy linessuch as the quirky animal Deglingos.This fall, though, they saw theirown toy ideas come to fruition withthe Topozoo line of mix-and-match

animals manufactured byChmura Custom Wood-

works in Indepen-dence.“Most of our

products come from

■ Build a Dream Playhouses: TheWickliffe company makes cardboardplay structures meant to be coloredand customized by kids and their parents.

■ Fast Ball: A baseball simulation gamedeveloped by Dan Squires and ScottDemers, it includes an electroniccomponent and is played by rolls ofdice and strategically choosing cardsrepresenting manager decisions.

■ BowWow-Meow: TheClevelandHeights com-pany, run by son-mother teamMike and EvelynGreenwald, offerspet-themed children’s craft kits.

■ The Party Animal Inc.: The Avoncompany in 2010 stepped beyond itssports team collectibles and para-phenalia with Lil’ Teammates, a line of collectible action figures.

See TOYS Page 15

In honor of the start of 2011, weasked several small businessowners to share with us theirresolutions for the coming year

as well as what their biggest regretswere from 2010.

And from the sound of things, itlooks like the order of the day mightbe to move full speed ahead, settingaside many of the reservations ofthe past. — Amy Ann Stoessel

Mario Jurcic was born and raisedon the East Side, the same place hereturned to operate his business afterattending Ohio State University.

Mr. Jurcic, 26, founded Mentor-

based Secure ITAsset Disposi-tion Services in2009, buildingoff experiencefrom a previousentrepreneurialventure hestarted while

still in college.The company aims to provide

secure and compliant data destruction services, assistingcompanies and organizationswith end-of-life technology needs,Mr. Jurcic said. Other services ofthe firm include electronics recy-

cling and equipment remarketingand refurbishing.

■■ What is your New Year’s resolution for 2011 as it relates toyour business? “I have a great teamto lead, wonderful clients and a growingbook of business … the resolution isto continue to build upon the solidfoundation.” Specifically, Mr. Jurcicsaid he hopes to add both employeesand coverage area to his business.

■■ What is your biggest businessregret from 2011? “Not giving upsooner. ... And by that I mean givingup activities I enjoyed that diverted myattention from taking the necessarysteps to be the best in our industry.”

He explained that he realized that itis “OK to quit” one thing in order to focus on another. In Mr. Jurcic’s case,he made the decision to give up otherpursuits, such as soccer, in favor ofhis business. “I was pursuing so manythings at once, I wasn’t doing anythinggreat,” he said.

Laura Williams, owner of LaBellaCupcakes, spends 40 hours a weekbaking cupcakes — specializing insuch tantalizing flavors as Red Velvet, Molten Lava, Mocha Madness and Wedding Whisper.

Ms. Williams, with the help ofher husband, Mike, opened a Lake-

wood storefrontin October, aftera period of sellingcupcakes by de-livery and mar-keting throughword of mouthand social media channels.

The cupcake entrepreneur originally began the business as aresult of unemployment. Now, herhusband has left his job in con-struction to focus on the bakingbusiness as well.

■■ New Year’s resolution: “OurSee RESOLUTIONS Page 15



SMALL BUSINESS

Recent legislation aimedat benefiting small firms

To some degree, Washingtonis looking to small businessowners to help jump-startthe sluggish economy, and

it’s readily apparent in the long listof tax benefits provided under recent legislation — most notablythe Small Business Jobs and Tax Actof 2010 and more recently the 2010Tax Relief Act passed by Congressin mid-December.

The SBJA focuses heavily on providing small business ownerswith tax benefits that are intendedto inspire investment and spending.

Perhaps one of the most significantexamples is a dramatic expansionof depreciation allowances underSection 179 of the Internal RevenueCode.

Section 179 allows a taxpayer todeduct the cost of certain types ofassets as an expense rather than requiring depreciation so the costwould be written down graduallyover the life of the asset.

The SBJA increases the maximumamount that a taxpayer can expenseunder Section 179 from $250,000 to$500,000 and increases a phase-outlimitation associated with the benefit from $800,000 to $2 million.

The law also expands the defini-tion of assets that would qualify forthe Section 179 allowance to permitthings that previously were prohib-ited. That includes, for example, animmediate write-off for up to$250,000 of restaurant property, retail property or certain improve-ments to leased property.

The Tax Relief Act expanded evenfurther the write-offs available to allbusinesses by changing the 50%first-year bonus depreciation rulesto 100% for qualified investmentsmade from Sept. 8, 2010, to Jan. 1,2012.

That means businesses can writeoff the entire cost of most new assets, other than buildings andbuilding improvements that are acquired during the effective dates.The phase-out rules applicable toSection 179 do not apply under thebonus depreciation provisions.

The effect is an immediate taxsavings for small business ownerswho have made investments intheir operations in 2010 or plan todo so in 2011. As an example, assumethe owner of a small, independentbakery decides to expand to includean eat-in café. The project requiresleasing an adjacent storefront andinvesting $300,000 in renovationsand kitchen equipment.

Before the 2010 Act, the ownerwas allowed a Section 179 deductionof $50,000 for the new equipment

PETERDEMARCO

TAX TIPS

and a depreciation deduction forthe leasehold improvements over39 years. Under the new provisions,the entire investment of $300,000 canbe deducted in the year expended.

Other significant benefits of theSBJA include:

■ Carrying back credits: Tax lawallows taxpayers to carry unusedgeneral business credits back to offset taxes paid in a prior year orforward to offset future tax liabili-ties. The SBJA expands the carry-back allowance from one year tofive years and allows taxpayers touse eligible small business creditsto offset both regular income taxand alternative minimum tax.

■ Self-employment and healthinsurance: Typically, a self-employed individual such as asmall business owner can deductthe cost of their health insurancefor income tax purposes, but not for purposes of calculating self-employment tax. For the 2010 taxyear, however, the SBJA will permitit.

■ Rollovers to Roth accounts:The SBJA allows employers to offerparticipants in 401(k) retirementssavings plans to make rollovers ofeligible distributions from those accounts to Roth 401(k) accounts.While traditional retirement savings plans provide an up-fronttax benefit, Roth accounts foregothe deduction at the time an employee defers salary into theplan, providing the tax advantage atthe time of withdrawal.

The Small Business Jobs and TaxAct and the 2010 Tax Relief Act include a number of other provi-sions that small business ownersshould explore carefully.

Depending on a given company’sfinancial position, they could contain a nugget of opportunitythat could be leveraged in preparingthe 2010 tax return or explored inthe upcoming tax year. ■

Mr. DeMarco is vice president anddirector of tax services for the regional accounting and businessconsulting firm of Meaden & Moore,headquartered in Cleveland.

COMING UPNorTech Innovation Awards

GRANDOPENINGSPACE EXPRESS FITNESS27219 Wolf RoadBay Village 44140http://paceexpressfitness.comPace Express Fitness is a co-ed express fitness program that combines a total strength and cardioworkout in 40 minutes. Anyone at anyfitness level can participate in theprogram, including beginners and athletes in training. The operation isnot a franchise; there is a mastertrainer based in California, but eachstudio is independently owned. TheBay Village studio is open every daybut Sunday. The program is or hasbeen used by the New England Patriots, Phoenix Suns and U.S. military, among [email protected]

CHARNA E. SHERMAN LAW OFFICES CO. LPA5310 Key Tower, 127 PublicSquareCleveland 44114www.charnalaw.comCleveland attorney Charna E. Sherman

has established her own practice.The female-owned boutique will focuson complex commercial litigation, including toxic tort, environmental,health and safety, product liability, intellectual property and white-collardefense. Ms. Sherman, previously anequity partner with Squire, Sanders &Dempsey LLP, launches her firm withmore than 25 years of experience asa litigator and trial lawyer, as well asa strategic negotiator in complex mediation and settlements. Ms. Sherman also is launching The RubyShoes Fund to support new initiativesto empower women in the legal profession. She is committed to

donating 10% of her law firm’s profitsto philanthropy, with the largest percentage to support The RubyShoes Fund.Phone 216-453-0808Fax 216-453-0809

MAXOUT SPORTS LLC 23860 Miles Road Bedford Heights 44128www.maxout-sports.comMaxOut Sports is a martial arts and fitness center offering training for children and adults in mixed martialarts, judo/jujitsu, Muay Thai kickboxing,tae kwon do and self-defense. Thecenter also provides personal trainingby certified strength and conditioningspecialists, as well as certified instruc-tion to law enforcement [email protected]

To submit a new business, send thefollowing information by e-mail toAmy Ann Stoessel at [email protected]: business name; address;city and ZIP; web site; brief descrip-tion of business; business phonenumber; business fax number; business e-mail address; and datethat business opened. Call 216-771-5155 with questions.

PHOTO PROVIDED

Charna E. Sherman

Crain’s third annual section honoring the best and brightest ofthe region’s technology sector — inconjunction with regional technologyadvocacy group NorTech — will bepublished Feb. 21, with an event honoring this year’s winners set forThursday, Feb. 24.

For more information on the event,including a list of this year’s finalists

and recaps of past events, and tobuy tickets, visit www.crainscleveland.com/marketing/nortechia.html.

■ CRAIN’S BREAKFAST SERIES:The first dates for Crain’s Ideas atDawn breakfast series are set. Visitwww.crainscleveland.com/breakfast for details.


goal for 2011 is to become recognizedas Cleveland’s best gourmet cupcake bakery. As we continue to grow andmake new friends with our customers,we will also look for new ways to rewardour customers by giving discountsthroughout the year and other incen-tives.” Ms. Williams believes strongly inusing social media to get the word outabout her business — in fact, she saidshe launched her business via Twitter.

■■ Biggest regret: “As we look backon 2010, we would have to say that wedon’t have any business regrets. Every-thing doesn’t always go as planned,that’s for sure! But we always want tostay positive and any hiccups that wemay have experienced this past year,we really look at it as a learning experi-ence. We learn, we change, we grow.”

Toby Mal-oney and hiswife Melaniehave helped to lead the mental _flossbrand since itsbeginnings. To-day, what wasonce a maga-

zine and concept — “where peoplewho enjoy quirky, funny couldcome together” — has evolved intoa mini-media company and brand,Mr. Maloney said.

In 2009, the company’s overallrevenue came in at $2.5 million.(2010 figures are expected to exceedthat.) The brand also opened itsfirst retail location a year ago inChesterland, and the company sellsa variety of products, such as T-shirtsand games, that appeal to con-sumers’ nerdier sides.

■ New Year’s resolution: “Tomake sure that every person in Americahas heard of the mental_floss brand.”Mr. Maloney said that one of things thatmental_floss was “late to the party” onwas the power of the Internet and social media, something that he hopesto take more advantage of whether it’sthrough Twitter or other means.

■ Biggest regret: “My biggest regret is that there aren’t more hours inthe day as we have so many fabulousopportunities to grow our business.”

While said tongue in cheek, Mr. Maloney is serious about looking aheadto the growth of the company. “Thechallenge is getting to that next stagein terms of growth and doing it in athoughtful way,” he said.

Mr. Maloney sees countless opportu-nities in the future, including anythingfrom licensing to franchising — thetrick will be finding what makes themost sense for the company.

Bill Russellbelieves thatstarting a busi-ness part time isa good way toget an entrepre-neurial ventureoff the ground,and that’s exactly

what he did when he and his wifeStaci started their CrossFit Clevelandenterprise in Lakewood. CrossFit isan instructor-led fitness program,with routines that regularly changefocus.

The Russells started by offeringfree group workouts early in 2007,and they later opened a Lakewoodlocation. It’s now a full-time opera-tion, and a studio also was openedon the East Side in November.

overseas, and everybody likedthem, but we felt … people wantedthings made locally,” Mr. Fabersaid. “We kind of reverse-engineered: What could we makehere, feasibly? It was really Ryan’sidea, this whole kind of puzzle-animal system.”

The Topozoo line came togetherquickly and launched in September,selling in places like local toystores and museum gift shops,since its eco-friendly manufacturingand other factors mean the toyscost more than most mass-marketretailers are willing to pay.

Thanks to strong word of mouthand mentions from both Woman’sDay and Real Simple magazines,though, Topozoo was Geared forImagination’s top-selling fourth-quarter product.

“We didn’t even plan Topozoo(sales) in our 2010 forecast,” Mr.Hamilton confessed. “We didn’t wantto count on it and come up short.But we shipped about 3,000 totalunits this fall, and none of it sat onthe shelves for more than a day.”

Beyond make-believeThe origins of Wickliffe-based

Build a Dream Playhouses likelywill sound familiar to anyonewho’s been a kid: “When I was sixyears old, my parents bought a refrigerator,” said president andfounder Michael Welsh. “I, likeevery other child, wanted the box.”

Mr. Welsh returned to playingwith boxes a few years ago whenhe recruited two local college students and then took his ideasfor a line of cardboard play struc-tures to Nottingham-Spirk DesignAssociates. Build a Dreamlaunched in late September withsix environments ranging from aone-kid spaceship to the instant-construction “Pop N’ Play” castle.

Although more playsets are slated for spring, Build a Dream isskipping the New York Toy Fairwhile it awaits patent approval.Mr. Welsh still has plans to exhibitat the Toy Industry Association’sFall Preview show in Dallas.

Manufactured by Ravenna packaging company Smurfit-Stone, the playhouses are printedin black-and-white outline formand meant to be colored and cus-tomized.

Dan Squires, who, as an employeeof the Richard E. Jacobs Grouphelped design the seating layout atthe Cleveland Indians’ ballpark, isgetting his cleats dirty in the toyworld with Fast Ball, a baseballsimulation game he developedwith business partner Scott Demers.

“This game incorporates a traditional board game with diceand cards, but also incorporatesthe electronic component to becompetitive in the market,” saidMr. Squires, who said the game’sorigins go back to 2005, when Mr.Demers approached him with theidea, and pencil, paper and a pairof die.

Fast Ball will come with a high-definition touch screen in a home-plate-shaped plastic case, and include recorded audio commen-tary, though game play is shapedthrough the rolls of dice and stra-tegically played Manager Strategy

Cards representing coaching decisions. The game will make itspublic debut at this year’s Toy Fair,and Mr. Squires said he and Mr.Demers already have another base-ball-related product in the works.

More than pet projectsMike Greenwald and his mother,

Evelyn Greenwald, founded Cleve-land Heights-based BowWow-Meow in 2007 by combining theirlove for pets with their shared experience in developing children’scraft kits for Creativity for Kids.

“We launched with (kits for) adog scrapbook and a cat scrapbook,”Mr. Greenwald said. “And we’vecontinually come out with more.”The product line has expanded tokits for decorating pet bowls,leashes, picture frames, collars andshrink-art plastic jewelry. Andcoming off the company’s bestChristmas season yet, the Green-walds are adding a bird-feeder kitto the catalog for 2011.

BowWowMeow seems to havefound an uncrowded marketniche, but Mr. Greenwald admitsthat its unique position has comewith its share of struggles: Petstores, for instance, often see theproducts as toys or crafts, whilelarger toy retailers and craft storesview them as too pet-centric fortheir shelves.

As a result, most of BowWow-Meow’s nearly 400 retail customersare specialty toy stores and museumgift shops. “We’re not in any of themass-market stores,” Mr. Green-wald said. “We’ve been approachedby a lot of them, but we can’t workwith the (cost) margins they needto make. And right now, we’re kindof happy being a specialty brand.”

Avon-based The Party AnimalInc. has been around for twodecades, but 2010 saw the company’sfirst steps beyond its establishedarena of licensed sports team andcollege paraphernalia with the creation of Lil’ Teammates, a lineof collectible action figures.

“About three years ago, we kindof looked at the kids’ market, andwe saw that there really wasn’t alot of licensed product for children,”said president Jim Cantrall. “Therewas apparel. And then when theygot older, they had video gamesand things, but nothing you wouldcall ‘toys.’”

In January 2010, the 3-inch-tallLil’ Teammates were launched,and as representative figures became available for all the NFL,MLB and NHL teams, as well asmany colleges, Party Animalwound up with more than 200products for sale its first year.Many of the 200,000 units soldcame in the third and fourth quarters, Mr. Cantrall said, and Lil’Teammates accounted for 20% ofthe company’s 2010 sales.

The figures are sold throughteam shops, grocery stores andDick’s Sporting Goods, and talksare under way for a test programwith Toys R Us. Add that possibili-ty to plans for expanding the line,and Mr. Cantrall says there may bea shift on the horizon.

“Right now, we’re a flag companythat happens to have a toy line,” hesaid. “I can see us being a toy com-pany that does flags on the side.” ■


NORTHEAST OHIO REGIONAL SEWER DISTRICT

SMALL BUSINESSENTERPRISE PROGRAM

Here’s the sign you’re looking for.

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

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

APPLY & LEARN MORE at neorsd.org/sbe



Toys: Area companies findthe right products, niches

ResolutionsSMALL BUSINESS

■■ New Year’s resolution: “Ourplan for 2011 is to move our businessinto a larger facility in Lakewood. Thiswill enable us to grow by offeringmore of our Executive Fitness Pro-grams during prime-time hours.” TheExecutive Fitness Programs feature alimited class size in a private setting.

■■ Biggest regret: “2010 was agood year for us. Many business ownersplayed it safe in 2010 due to concernsabout the economy. If we could do itover again, we would open our newEast Side location, Great Lakes CrossFit, earlier in the year.”

MorganMcIntosh was29 years oldwhen he tookover AMFMInc., the busi-ness started byhis father.

The Willough-by manufacturer continues to makethe same core products it has sinceits beginning — braid bands for fabricating metal hoses.

Mr. McIntosh said his father sawa need for the company’s productmore than 20 years ago, and whileAMFM has added to its offerings, italso still sticks to its roots. “We’veevolved, adapted and changed as acompany,” he said.

■■ New Year’s resolution: “Mybiggest resolution for 2011 is to takemore action as far as developinggrowth opportunities for my businessas the economy improves.” And thatlikely means adding staff and spendingmore time on activities that generategrowth, Mr. McIntosh said.

■■ Biggest regret: “My biggest regret is not being more aggressive inseeking opportunities to grow my business.” Mr. McIntosh said previouspreparations put the company in agood position to handle any bumpsfrom the economy. ”It was easy just tofocus on being stable,” he said.

Bill Mitchell’s family has beenmaking chocolates in the Cleve-land area for more than 70 years.The original location for the storethat would become Mitchell’s FineChocolates — at Euclid HeightsBoulevard and Coventry Road —was next door to a movie theater;the business moved to its currentCleveland Heights location in 1991.

■■ New Year’s resolution: “Makingthe business more efficient … increasingsales.” Mr. Mitchell said there hasbeen a slow demographic shift fromthe inner-ring suburbs, which is one ofthe reasons he’s taken steps like linkingup with Heinen’s during the holidayseason to sell his chocolates. Ofcourse, Mr. Mitchell noted there arechallenges today with the rising costof ingredients, decreased corporatespending and tighter budgets.

■■ Biggest regret: “Technologycould make us more efficient.” Assuch, Mr. Mitchell said he wishes hewould have purchased more equip-ment and taken advantage of lower exchange rates.

20110110-NEWS--15-NAT-CCI-CL_-- 1/7/2011 11:05 AM Page 1


NORTHEAST OHIO'S TOP SBA LENDERSRANKED BY DOLLAR VALUE OF 7(A) LOANS IN FISCAL 2010

Thisyear

Company nameHeadquarters

Dollar value of approved loansfiscal 2010

Dollar value of approved loansfiscal 2009 % change

Number of loans fiscal2010

Number of loans fiscal2009 % change

1 Huntington National BankColumbus 54,599,300 24,282,600 124.8% 352 195 80.5%

2 Fifth Third BankCincinnati 12,197,500 5,372,000 127.1% 30 14 114.3%

3 JPMorgan Chase & Co.New York 10,902,800 2,980,800 265.8% 76 23 230.4%

4 KeyBank NACleveland 10,521,000 12,673,700 -17.0% 71 62 14.5%

5 Lorain National BankLorain 6,142,900 1,129,000 444.1% 24 9 166.7%

6 CFBankFairlawn 5,449,000 2,147,500 153.7% 23 15 53.3%

7 First Place BankWarren 4,902,000 1,398,000 250.6% 8 6 33.3%

8 Grow America Fund Inc.New York 4,871,000 330,000 1,376.1% 7 1 600.0%

9 Ohio Commerce BankBeachwood 4,248,500 2,780,000 52.8% 4 7 -42.9%

10 FirstMerit Bank NAAkron 4,080,300 5,976,800 -31.7% 37 54 -31.5%

11 Charter OneProvidence, R.I. 3,686,500 3,296,800 11.8% 65 65 0.0%

12 PNC BankPittsburgh 3,610,800 7,670,000 -52.9% 14 42 -66.7%

13 Westfield Bank FSBWestfield Center 3,428,400 113,000 2,934.0% 12 2 500.0%

14 Citizens BankFlint, Mich. 3,098,100 2,658,400 16.5% 17 16 6.3%

15 Citizens Banking Co.Sandusky 2,951,000 5,278,600 -44.1% 7 25 -72.0%

16 Genoa Banking Co.Genoa 2,309,000 1,160,100 99.0% 7 14 -50.0%

17 Consumers National BankMinerva 2,147,100 1,208,000 77.7% 10 11 -9.1%

18 United Western BankDenver 2,103,000 800,000 162.9% 2 1 100.0%

19 First Federal Bank of the MidwestDefiance 2,059,100 2,020,000 1.9% 4 7 -42.9%

20 First Western SBLC Inc.Dallas 1,965,000 ———— ———— 2 ———— ————

21 U.S. Bank NAColumbus 1,903,500 6,046,800 -68.5% 29 49 -40.8%

22 First Colorado National BankPaonia, Colo. 1,800,000 ———— ———— 2 ———— ————

23 Compass BankBirmingham, Ala. 1,564,600 ———— ———— 3 ———— ————

24 CIT Small Business Lending Corp.Livingston, N.J. 1,543,000 1,577,000 -2.2% 2 2 0.0%

25 The Henry County BankNapoleon 1,469,500 ———— ———— 2 ———— ————

This list was compiled from information provided by the Cleveland District office of the SBA for fiscal years ended 9/30/2010 and 9/30/2009. The Cleveland District covers 28northern Ohio counties. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcomeall 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 atwww.crainscleveland.com.

Researched by Deborah W. Hillyer

In Mr. Waters’ four-plus seasonsat Cleveland State, during which theVikings have compiled a record of88-63, the team has averaged around2,500 fans per game. In 2008-09,when CSU won the Horizon Leaguetournament and upset Wake Forestin the first round of the NCAA tour-nament before losing to Arizona,they drew 2,245 on average.

But with football season over, theCavs’ struggles and an exciting, up-tempo team on its home floor,Cleveland State and new WolsteinCenter management companyGlobal Spectrum are introducingnew options to draw more fans tothe arena — and in some casesdraw more revenue from thosefans.

Ticket prices were raised to $15from $10 for general admission forfour “premium” games — againstKent (Nov. 14), St. Bonaventure(Nov. 27), South Florida (Dec. 22)and Butler (Feb. 5). And until Jan.24, fans must buy a three-game

package if they want to see Butler,the cream of the Horizon Leaguecrop and the team that came with-in one bounce off the rim of beatingDuke last April to win the nationalchampionship.

The pricing gambit paid off for the South Florida game, whichdrew 4,711 — including a walkupcrowd of about 3,000, said BrianMcCann, CSU’s assistant athleticdirector for communications. Theschool hopes for similar interest inthe Butler game; when the Bulldogsvisited the Wolstein Center lastyear, they drew 4,681 fans, theVikings’ second-largest crowd ofthe season.

Drawing on expertsCleveland State’s efforts are

merely indicative of the work manyteams must do to keep fans comingthrough their turnstiles.

“I think it shows the pressureeveryone is under — ClevelandState, the Cavs — to bring more rev-enue in,” said Jim Kahler, formerly

vice president of sales and market-ing for the Cleveland Cavaliers andnow executive director of the Centerfor Sports Administration at OhioUniversity.

“More colleges are going to outside companies, which have expertise in this area and can takeadvantage of opportunities likeButler,” Mr. Kahler said. “WhenMichael Jordan came to Clevelandtwice a year (with the ChicagoBulls), we leveraged the hell out of it.”

The price hikes also are a way tooffset the scheduling difficultiesfaced by the Vikings and other successful mid-major programs.The Vikings have strayed from theirstrategy of last year — a brutal non-conference schedule includingKentucky, Virginia, Ohio State,Kansas State and West Virginia —and focused on playing similarmid-major teams such as SamHouston State, Louisiana Lafayette,St. Bonaventure and Iona.

However, that strategy comeswith a price: Gone is the fat guaran-

teed paycheck that big-name programs such as Kentucky pay totheir opponents. Meanwhile, Cleve-land State must incur the cost oftraveling to Huntsville, Texas, andLafayette, La., to get those schoolsto agree to so-called “home-and-home” series.

Profits vs. pizzasIn another pricing ploy, Wolstein

Center has created a group of court-side seats along one baseline. It’ssomething Global Spectrum hastried — along with mini plans andpremium games — at the 10 othercollege arenas it manages, includingthose at the universities of Miami,South Carolina and Central Florida.The courtside seats go for $30 andare sold out for coming gamesagainst Wright State, Detroit andButler.

“The premium game and premiumseat models are going on every-where,” said Kayla Ott, Global Spec-trum’s director of marketing at theWolstein Center. “These are ideaswe identified when we first satdown with CSU, and they seem tobe working well. The team’s successalso is a factor.”

Global Spectrum also hired threefull-time salespeople for the ticketoffice, a job handled previously byone person and interns. Since GlobalSpectrum took over in May, thecompany has sold 300 mini planscentered around the Butler game, witha goal of 500 by Feb. 1, Ms. Ott said.

Mr. Kahler said without companiessuch as Global Spectrum, “you havestudents who are selling tickets forpizza.”

“Salespeople are selling for commissions, and that’s how theseschools can compete in pro cities,”he said.

Similar strategies are employed atKent State, another successful mid-major that has trouble getting opponents to play them, for fear ofa loss.

Ticket manager Joe Carr, whileacknowledging the Kent and Cleve-land markets are quite different,said Flashes officials market three-game plans around each year’sgame between backyard rivalAkron, which typically sells out.That game is packaged with less desirable games, such as EasternMichigan (Feb. 9) and others thatdon’t move the ticket meter. ■


CSU: Pro sales staff helps ticket traffic


In 2010, PNC Bank and Huntingtonboth instituted a so-called secondlook process through which thebanks are reconsidering businessloan applications that didn’t qualifythe first time around.

Other efforts exist, too.Dollar Bank revamped its web site

in 2010, in part to enable businessesto apply online for credit cards, saidBill Elliott, senior vice president ofcorporate banking for Cleveland.Now, the bank is working to allow online business loan applications, too.

Dollar Bank also advertised itsbusiness products more in 2010 thanit had in recent years, Mr. Elliott said.The goal: to make businesses awareof Dollar Bank as more companiesreturn to borrowing.

Charter One, which has 115branches in Northeast Ohio, beganallowing applicants for small businessloans of $50,000 or less to apply overthe telephone, said Ken Marblestone,president for Charter One, Ohio.

“We wanted to make sure thatthey — particularly because of someof what you read in the papers —had immediate access to talk tosomebody,” Mr. Marblestone said.

Finding a comfort zoneIn Ohio and across the nation,

banks’ commercial and industriallending numbers were fairly flat duringmost of 2010, according to data fromthe Federal Deposit Insurance Corp.

That does not mean banks weren’tlending, cautioned Jeff Quayle, seniorvice president and general counselfor the Ohio Bankers League. He notedamortization, or the paying down ofloans, likely offset some new loansthat were made.

Business loan demand has improvedin recent months, many bankers say.

“We became increasingly com-fortable with the economic situation,and our customers became increas-ingly comfortable with the economicsituation,” Mr. Marblestone said.“Therefore they wanted to borrowmoney again … and so one thingleads to the other.”

Banks are focusing on businesslending more than they have in recent years out of necessity, saidFred Cummings, president of Eliza-beth Park Capital Management. Demand for — and banks’ desire toissue — commercial real estate loanshas declined, and that’s a businessthat used to drive growth in mostsmall to midsize bank portfolios, Mr.Cummings said.

“Banks are flush with deposits,and they’re looking for places to invest those deposits,” he said.

As the economy improves and thenumber of creditworthy borrowersincreases, commercial and industriallending should increase, probably inthe first quarter of this year, saidJames Thurston, Ohio Bankers Leaguespokesman. Mr. Cummings predictedan uptick later in the year; he notedthat banks still have not relaxed theirunderwriting standards, but antici-pates they may by late 2011.

An increase in business lending,Mr. Cummings said, is a win-win be-cause banks can generate returns forshareholders while local companiesare able to create much-needed jobs.

Signs of changeSome banks indicate their busi-

ness loan numbers are up already.Huntington in 2010 committed to

investing $4 billion in small busi-nesses over the next three years, and


It’s time for your business to accomplish big things again.

Now’s the time to reinvest in your business’ future. The last few years haven’t been easy. It’s been work just to maintain the business you’ve built.

It’s time to get back to growing it. Whether that means buying new equipment, improving your

working capital, or reinforcing your overall finances, Fifth Third Business Bankers can help you take

action to get your business moving forward with confidence. Stop in your local Fifth Third Banking

Center, call 1-866-534-7249, or visit 53.com, and let’s get your business moving.

Loans subject to credit review and approval. Fifth Third Bank, Member FDIC. Equal Housing Lender.


Banks: Institutions increasing loan volumesDaniel P. Walsh Jr., president forthe Greater Cleveland region, saidthe bank is ahead of schedule. Thebank’s small business lending inGreater Cleveland alone increased30% in the first three quarters of2010 over the same period in 2009,Mr. Walsh said.

“The numbers are pretty stunning,”he said. “We’re just getting started.”

Mr. Walsh said the Small Busi-ness Administration’s decision toincrease the size of the loans it willguarantee means larger clients nowqualify for such loans, and that’s acatalyst for growth.

FirstMerit Corp. in Akron revealedin its third-quarter earnings callthat its commercial loan origina-

tions were up 16% over the secondquarter. Likewise, Charter One’smiddle-market business loan port-folio ended December 2010 up 9.3%from January 2009, Mr. Marble-stone said — an increase that accounts for amortization.

Then there’s Chase Bank, whichoperates 83 branches in NortheastOhio. It says it increased its smallbusiness loan volume in dollars inthe Cleveland market by 131% in2010 compared with 2009, and projects a 25% increase in businessloan production this year, saidDavid Tortorella, business bankingmanager for the East region. The131% increase does not reflect mid-dle-market activity, he noted.

Chase may reintroduce in 2011some of the business lending pro-motions it offered new last year, including one in which the bank offered a cash back refund of up to$4,000 to businesses that borrowedmoney to purchase new equip-ment. The bank also covered 50% ofthe closing costs (up to $5,000) forowner-occupied real estate loans,which are reserved for businessesthat would occupy at least 50% ofthe real estate they’re buying.

Chase has other business lendingpromotions in pilot stage, but Mr. Tor-torella said he couldn’t divulge them.

More than ‘lip service’?Some business clients continue

to complain they’re denied the cred-it they’re seeking, said Joe Arnold,founder and president of FoundationWealth Advisors LLC in Westlake.

“(Banks) are trying to win clientsback,” Mr. Arnold observed. “It’smuch like politics. They’re trying tosay and do the right things, but whenit comes down to putting pencil tothe paper, are they doing it?”

Certified public accountant Mr.Mackert, whose clients are smallbusinesses, said he initially believedbanks’ talk of increasing businesslending was merely “lip service.”However, he said he is seeing evi-dence that it’s happening.

“Things weren’t good, but theeconomy’s gotten better,” said Mr.Mackert, owner of Mackert Consult-ing Group in Westlake. “More clientshave profits. I’m actually seeingsome startup businesses gettingmoney.” ■



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

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

AUCTIONS

INVESTMENT PROPERTY

FOR SALE

OFFICE SPACE

COMMERCIALPROPERTY

AATTTTEENNTTIIOONNRREEAALLTTOORRSS::Now is a great time

to promote your

Luxury Properties

to high-end

prospects

AND

receive reduced

rates on

your advertising.

Call Genny Donley at(216) 771-5172for more details.

Crain’s Online Property Searchwww.CrainsCleveland.com/LoopNet

For advertising opportunitiescontact Genny Donley at 216-771-5172

•SEALED BID LIQUIDATION•

By Order of Court Appointed Receiver• GREAT INVESTMENT OPPORTUNITY •

Two Industrial/Warehouse Buildings • 325,640 Sq. Ft. Total on 25+ AcresCross Docking Ability

Sealed Bids DUE Thursday, February 3, 2011 @ 5:00PM

OFFERING #1Location: 1212 E. Alexis Rd.,Toledo, OH 43612211,400 Sq. Ft. Industrial/Warehouse. 12.8+/-Acres. Built 1989, renovated 1998. Large-ScaleCross Dock.

OFFERING #2Location: 1212 E. Alexis Rd.,Toledo, OH 43612Adjoined to Offering #1. 114,240 Sq. Ft. Industrial/Warehouse, Cross Docks, Truck & Trailer Storage.96,000 Sq. Ft. Assembly/Warehouse. 18,300 Sq.Ft. Cross Docking. 12.8+/- Acres. Built 1998.

Auctioneers: Wayne M. Wilson, CAIBrent J. Wilson, CAI

www.WilsonAuctionLtd.com

HIGH TRAFFIC AREA. Located on Heavy Haul Route. 1 Mile Off I-75, 2 Miles to Toledo North AssemblyPlant & GM Hydramatic Plant. 52mi - Detroit, 117mi - Cleveland, 152mi - Columbus, 205mi - Pittsburgh,229mi - Indianapolis, 254mi - Chicago, 284mi - Toronto & 563 mi to New York. Additional 17,625 Sq. Ft.in 2nd Floor. Office Area w/Restrooms, Break/Lunch & Locker Room Truck/Trailer Storage Area. Securi-ty Fencing & Guard House Steel Beam. Block Exterior. Steel Siding. Concrete Floors Great Location. Mul-ti-Use Buildings.

In Co-op w/CB Richard Ellis/Reichle KleinMarty Gallagher, SIOR -- 419-794-3956

Jerry Malek, CCIM, SIOR -- 419-794-3964 The Skutch Company, Ltd. - Receiver

For More Info., Terms & Bidding Procedures go to Our Website www.wilsonauctionltd.comOr, contact any of the following for more detailed information,

Due Diligence Packets & to Register for a Bidders Packet

Hollywood Movie Being made in ClevelandWriter/Director with “A list” script credits is seeking investors to fund a“G” rated film to be shot in Cleveland this summer.

Already in Place: Proven Writer/Director, Experienced Hollywood Assoc.Producer, Discussions with Distributor for Theatrical Release, Script, Ac-tors, State of Ohio Tax incentives, Site Permits, cameras, cranes, SpecialEffects staff and equipment.

Low Cleveland cost film for lucrative “G” market. Offers high return oninvestment – Full or percentage of film investments available.

For Details Contact Keith Kornell440 951-166 [email protected]

For SaleTangletown/BeachcliffRocky River

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

INDEPENDENCE CORPORATE CENTER7100 E. Pleasant Valley Rd.

Are you the best at what you do? Why not be in the best building in Cleveland too?www.independencecorporatecenter.com

216-674-0525

INDEPENDENCE CORPORATE CENTER7100 E. Pleasant Valley Rd.

Are you the best at what you do? Why not be in the best building in Cleveland too?www.independencecorporatecenter.com

216-674-0525

ROCKY RIVERFOR LEASE

OFFICE/RESTAURANT/BAR/RETAIL

Tangletown/Beachcliff areaLots of parking

440-333-0000 x 777

FOR LEASEMENTOR, OH

20,000 S.F. Clear Span Build-ing. 2 Docks, 1 drive in door.

Gas heat 600 S. F. Office.Call John H. Vanas

216-481-8444 Ext. 103

CCrraaiinn’’ss EExxeeccuuttiivvee RReeccrruuiitteerr

CEO – Cleveland, OHFaith Community United Credit Union is seeking an individual tofill its CEO/Treasurer position. Faith Community is a CommunityDevelopment Credit Union with approximately $12 million inassets located in Cleveland, Ohio. The ideal, successful candidatemust be a visionary, ready and willing to take advantage oftechnological advancements in the financial industry, increaseviability and reduce risks. A thorough knowledge of the creditunion industry, at least 5 years of relevant experience and/ordegreed college level education are preferred. The chosencandidate will also need to demonstrate effective boardcommunication, management of risks and comfort with strategicplanning initiatives for future aspirations of the credit union.

Please submit an Application Packet, including a cover letter withsalary requirements and resume with at least three (3) references,via regular U.S. mail to Matthew Jackson at 323 West LakesideAvenue, Suite 420, Cleveland, Ohio, 44113. Applicationpackets will be accepted until February 1, 2011.

CLASSIFIEDBUSINESS SERVICES

OFFICE FURNITUREHerman Miller Workstations

and Cubicles. L Shape Desk 6’ X 9’: Avail. in 2 depths(25” & 30”) and 2 lengths (66" & 70")Cubicles 3” D X 36” L X 54” H

Like New Condition.Contact

Helene 440-237-1500

LanderhavenImpress Your Clients

with an Event440.449.0700

executivecaterers.com

FLYNNENVIRONMENTAL

For Assessments(800) 690-9409

www.flynnenvironmental.com

SUSTAINABILITYAttn: CEOs & CFOs

Tired of high electric bills?

Save 50-70% on your lighting

energy costsGUARANTEED!

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

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

It's Stys, Since 1962!We BUY and SELL Used

Lift Trucks - Elec and L/P, PalletRacking, Shelving, Sweepers,

Scrubbers, Bobcats, Scissor Lifts etc...

Call: 216-641-7897www.stysinc.com

Submit your business card topromote your service and receive a

SUBSTANTIAL DISCOUNToff your ad price.

Contact Genny Donley at 216.771.5172

For daily on-line

updates, sign up @

CrainsCleveland.com/Daily

DON’T FORGET:Crain’s Cleveland Business on-line @

CrainsCleveland.com

For all the latest business news...online

HOMELESS:Hyster 5000 lb L-P

Pneu.185 Lift. Year-2005$8900 or offer

Stys, Inc.216-641-7897


Tribe offers suite deal on bleacher seats■ The Cleveland Indians have upped theante in their search for new season ticketholders.

Previously, the Tribe offered buy-one-get-one-free tickets in the lower and upperbowls, and those will return for 2011.

This year, fans who buy two season tickets in the left field bleachers will receiveeven more perks: a free Terrace Club mem-bership, one free suite rental — added lastyear to all new season ticket packages— and two tickets in the team’sfirst base-line club section,where all food and non-alco-holic drinks are free.

Terrace Club membership,typically a $900 value, in 2011will be free for all full-seasonticket holders, while club seats rangefrom $80 to $100 per game, according tospokesman Curtis Danburg. Suite rentalsrange from $2,200 to $6,400, depending onsize and location, according to Indians.com.

Those bleacher tickets for season ticketholders are $9 a game; earlier this offseason,the team announced single-game bleacherticket prices would decrease to $10.

The latest offers continue the team’s effort to drive back north its full-season-equivalent ticket base, which dropped to apost-Municipal Stadium low of 8,000 lastseason. The Indians finished last in atten-dance, at 17,395 per game, or 1.39 millionoverall. That’s a decrease of nearly 28% from2009 and a drop of almost 64% from 2007,

when the Indians advanced to the AmericanLeague Championship Series. — Joel Ham-mond

Ex-ShoreBank branch may land elsewhere■ Urban Partnership Bank isn’t necessarilygoing to move its Cleveland location byMarch 17, but it has reserved the right to do so.

The bank, which last August acquiredmost of the assets and all the deposits of thefailed ShoreBank in Chicago, has notified

its approximately 300 local customers that it may close itsbranch in the Glenville Enter-prise Center in Cleveland andmove it.

The Federal Deposit Insur-ance Corp. requires banks to notify customers 90 daysbefore a closure, said spokes-

man Brian J. Berg.Urban Partnership Bank is

seeking a new site and would moveby March 17 if it finds one, Mr. Berg said.Building new also is a possibility. The bankwill further clarify its plans next month, hesaid.

The local branch, which employs eight,does not offer retail banking. It’s on the second floor of the building in Glenville — a location that doesn’t lend itself to full-service banking, Mr. Berg said.

Mr. Berg anticipates Urban PartnershipBank will expand its services in a more con-sumer-oriented way in Cleveland, but hewouldn’t elaborate. — Michelle Park

One good turndeserves another■ Historically, it’s been a “give” relation-ship: Cardinal Community Credit Unionwould sponsor a local sports team, affordingthe team money to pay for items such as uniforms, and there, the relationshipended.

In late 2010, though, the credit union began asking for something in return.

As a result, the girls’ varsity basketballteam from Willoughby South High School,which the credit union sponsors, will help with an event later this month for chil-dren who were signed up in December for accounts, said Christine Blake, presidentand CEO of the Mentor-based credit union.

In addition, members of the boys’ juniorvarsity basketball team at Lake CatholicHigh School, which Cardinal also sponsors,have committed to mulching the landscapesof some needy credit union members afterMemorial Day.

The credit union does not make a requestto a school until after a sponsorship hasbeen given, Ms. Blake said.

“I don’t want to make it a condition,” shesaid. “(We want them) to do it because youfeel it’s the right thing to do, not becausewe’re holding the funds over your head.”

So far, the response has been good.“Community is part of our credit union

philosophy, and we feel that if it is part ofour philosophy, this is the best way to put itinto action,” she said. “We’re helping ourmembers, and our members are helpingeach other.” — Michelle Park

WHAT’S NEW

COMPANY: Polar Products Inc.,AkronPRODUCT: Heavy-Duty Cool FlowVest

Polar Products has developed a heavy-duty vest for its Cool Flow System that’s designed to be worn beneath lead aprons bysurgeons and their staff so they can staycomfortable during procedures in hot oper-ating rooms.

The vest “is a great addition to our line,”said Jacob Graessle, surgical cooling specialistfor Polar Products, which has made bodycooling systems for more than 25 years. “It’sa durable vest that can withstand long-term(and) daily O.R. conditions.”

Ice water continuously circulates from a15-quart cooling reservoir through insulatedtubing sewn within the vest. High flow, quick-disconnect couplings allow freedom of move-ment as needed, the company says.

The Heavy-Duty Cool Flow vest is madewith “extra-strength tubing compared to otherstyles ofsurgical cooling vests,” according toPolar Products.

The company last year launched CoolOR,a line of surgical products for the entire sur-gical team.

For information, visit www.PolarProducts.com.

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK JANUARY 3 – 9

The big story: Dots, a women’s apparel andaccessories retailer based in Glenwillow, was acquired by Irving Place Capital, a private equityfirm in New York that has invested in such retailersas Aeropostale and New York & Co. The pur-chase price was not disclosed. Dots was found-ed in 1987 and has grown into a retail chain withmore than 400 stores in 26 states, mainly in theMidwest, East and Southeast. Bob Glick, Dots’founder and its departing CEO, said the acquisi-tion “is a wonderful opportunity for Dots to cap-italize on its brand and accelerate its growth.”

Mangenius no more: The Cleveland Brownsfired head coach Eric Mangini after consecutive 5-

11 seasons. Mangini reportedlyhad two years left on his contract. Browns presidentMike Holmgren said while theteam “made improvementsthis season, my responsibilityis to ensure that we establisha program that will allow thisteam to compete at a cham-pionship level.” Holmgrenhimself is considered a candi-

date to take over the coaching reins.

Fired up: Invacare Corp. received a warningletter from federal regulators last month that alleges the company didn’t properly report andrespond to problems that its electric beds havecaught fire and caused injury and death. TheU.S. Food and Drug Administration said theElyria-based maker of wheelchairs and otherhealth care equipment failed to investigate recurring complaints about its adjustable beds.The letter followed an August inspection of thecompany’s bed manufacturing plant in Sanford,Fla. Invacare responded to the FDA’s complaintsin September, but the regulators said the response was “not adequate.”

Lost opportunity: Boston Scientific Corp.paid $60 million to acquire a Cleveland Clinicspinout company that recently moved to Bostonfrom Cleveland even though its technology wascreated with the help of a state grant. The com-pany, Intelect Medical Inc., is developing soft-ware that Boston Scientific plans to combinewith its Vercise deep brain stimulation system.The Guide software system is designed to helpclinicians visualize stimulation fields in the brainand provide more precise targeting of stimula-tion therapies. The Clinic developed Intelect’stechnology with the help of a $7.6 million grantthe state awarded through its Third Frontierprogram in 2004.

New opportunity: April Miller Boise, theonly black female head of a major Cleveland lawoffice, left the Thompson Hine law firm to takea corporate post with Veyance Technologies inFairlawn. Ms. Boise was named vice president,general counsel and corporate secretary ofVeyance, which makes conveyor belts and otherindustrial rubber products under the GoodyearEngineered Products name.

Building block: The developer of the EastFourth Street Neighborhood downtown is onthe move again, this time buying a small butstrategic building at 413 Prospect Ave. that’s bestknown as the home of Volk’s Jewelry & Loan.MRN Ltd. through 413 Prospect LLC paid$325,000 to Blue Jay Realty LLC of Cleveland.The building carried an asking price of $750,000.

Good work if you can get it: Turns outthere’s lucrative life after the Cuyahoga CountyBoard of Commissioners. Tim Hagan, a formercommissioner, will be a senior adviser to theMetroHealth system. He will work three days aweek and earn $90,000 a year.


Excerpts from recent blog entries on CrainsCleveland.com.

BEST OF THE BLOGS

Like his ideas or not, Gov. Kasich is thinking big■ Ohio’s new governor, Republican JohnKasich, earned a spot on a Slate.com list of“10 conservatives who will define 2011.”

The web site steered clear of likely GOPpresidential candidates and focused onelected officials in the states who are “sortingout their survival in a world where Medicarefunding is iffy and bailout money is nevergoing to come.”

Slate.com said if Gov. Kasich does every-thing he campaigned on, he “will completelyreshape the way Ohioans get taxed and theservices they expect to get.”

Among the big changes Slate.com saysare possible: phasing out the state incometax, leasing the Ohio Turnpike, cuts of 15% to20% in higher education funds and relaxingsentences for nonviolent offenders to reduce prison costs.

“And unlike the governors of Florida orGeorgia or Nevada, Kasichhas to do this in a state fewbusinesses or people aremoving to,” Slate.com con-cluded.

Did your portfoliodo this well in 2010?■ Financial blog SeekingAlphaput together a couple charts — one for thetop 20 price performance companies in theS&P 500 in 2010 and the second table for thebottom 20 — and two companies withNortheast Ohio operations made the charton which you’d want to be.

Columbus-based Huntington Bancshares,which has a big presence in this region, wasNo. 6 on the gainers list, with stock price

appreciation of 89.8% from Dec. 31, 2009, toDec. 30, 2010. (The stock rose to $6.89 from$3.63 in that span.)

Iron ore giant Cliffs Natural ResourcesInc. of Cleveland was No. 19 on the list, withits stock rising 71.6%, to $78.38 from $45.68.

If you need help multitasking,consult the Cleveland Clinic■ The Cleveland Clinic was singled out forpraise in a Forbes.com blog post as one ofthe nation’s institutions that succeeds inpursuing “two seemingly divergent ideas atonce.”

The post came from Inder Sidhu, seniorvice president of strategy and planning forworldwide operations at Cisco Systems Inc.Mr. Sidhu has written a book called “DoingBoth: How Cisco Captures Today’s Profitsand Drives Tomorrow’s Growth,” and hisblog post focused on companies and insti-tutions that are good, essentially, at multi-tasking.

In addition to providing “top-notch medical care,” Mr. Sidhu wrote, the Clinic

“is also a pioneer when itcomes to health care re-form.”

For several years, the Clinic“has aimed to simultaneouslyimprove patient care and cut costs,” according to Mr.Sidhu. “Doing both is impos-sible, some critics say. ButCleveland Clinic has proved

them wrong. This month, the institutionjoined five other care providers, including the Mayo Clinic and Utah’s IntermountainHealthcare, in a first-of-its-kind (effort) to pursue cost savings and care break-throughs. The organizations plan on sharing best practices, new ideas and inno-vations, too. Has doing both ever been moretimely?”

Holmgren


crain's cleveland business

Documents

auto sales

sales increase

president of die

benefitslocal suppliers

number of local banks

cars andtrucks

huntington national

zeitlers parts