crain's cleveland business

SPECIAL SECTION

CrainsCleveland.com/30thanniversary

By CHUCK [email protected]

Some of Northeast Ohio’s medical devicecompanies think all the surgery Congress just didon the nation’s health care system will help themgrow bigger and stronger, but others believe ithas left them with an infection in the form of atax that could kill innovation and jobs.

Dennis Stripe, CEO of OrthoHelix Surgical Designs Inc., can understand why they don’t allthink alike.

By increasing thenumber of people withhealth insurance, thehealth care bill thatPresident Barack Obamasigned into law lastTuesday, March 23,could end up helpingthe Medina companysell more of the surgicalimplants its makes forpeople with hand andfoot problems. Mr.Stripe figures people with insurance are morelikely to get that “hammer toe” fixed with Ortho-Helix’s help.

However, he knows those gains, if they mate-rialize, won’t come free. The law includes a 2.3%excise tax on the sale of all medical devices except for consumer goods, such as contact lensesand hearing aids. The provision survived anothertrial last week, when Congress approved a follow-upbill to amend the first one.

“We’re in a position to absorb it if we have to,”

“Taxing thosegrowing companies islike takingaway food froma teenager.” – Bob Schmidt,CEO, ClevelandMedical Devices Inc.

similar to Optima InternationalLLC, a Miami-based conglomeratethat recently acquired One ClevelandCenter, 1375 E. Ninth St., and the 55 Public Square office buildingdowntown. Optima Internationalspokesman Chaim Schochet did notreturn three calls from Crain’s byWednesday, March 24.

A copy of the letter to tenants datedMonday, March 22, and obtained byCrain’s, advised them that Optimahas “indicated their interest inspeaking with existing tenants inlease renewal discussions and may

be contacting you in the near future.”Retaining tenants would be crucialfor the building’s next owner duringthe recession.

Cleveland financier and real estate investor Carl Glickman ownsthe building and a land lease for theground underneath it. Mr. Glickmanholds the property through ChesterUnion Associates, a joint venturewith a New York-based investorgroup, according to land records.The expiration of Huntington’smaster lease means Mr. Glickman’s

$1.50/MARCH 29 - APRIL 4, 2010Vol. 31, No. 13

07148601032

613

EVENT PLANNINGIs one more convention center one too many forNortheast Ohio? ■■ 1

NEW

SPAP

ER

FILE

PHO

TO/R

UGG

ERO

FATI

CA

Potential Huntington Building buyer already has interests here

See HUNTINGTON Page 9

See DEVICES Page 5See BILL Page 4

Miami outfit recently added two downtown sites

By STAN [email protected]

The landmark Huntington Building— viewed by some as the granddame of Cleveland office buildingsand by others as a prehistoric mon-ster threatening the well-being ofthe city’s office market — may be inline for a new owner that alreadyhas displayed an appetite for Cleve-land skyscrapers.

Tenants in Cleveland’s second-largest office building recently receiveda memo from Hines, its propertymanager, saying that the building’sowner has signed a purchase agree-ment with Optima Ventures LLC.Hines manages the property on behalf of Huntington NationalBank, which controls the building at916 Euclid Ave. under a 100-yearmaster lease that expires next year.

Optima Ventures LLC is a name

Tax on medicaldevice makerscould be taxing

HEALTH CARE REFORM AND ITS EFFECTS IN NORTHEAST OHIO

Uncertaintysurroundsbill’s passage Assessment may stifle growth field

FILE PHOTO/MARC GOLUB

Hiroyuki Fujita, CEO of Quality Electrodynamics LLC, says the company — which makescoils for magnetic resonance imaging machines — could see a sales uptick with moreinsured people in the market. But, the company also could be hurt by its customersdemanding price cuts when their contracts expire.

Immediate changes likely to resultin premium increase; large, midsizeemployers brace for additional costsBy SHANNON [email protected]

The ink was barely dry on the health care bill when local businesses began asking professional organiza-tions: How does this affect me?

The answers aren’t completely clear yet, but what iscertain is that everyone will be affected somehow, so

businesses soon should beginworking with outside profes-sionals to figure out how theywill address the health care bill, said Pat Perry, president ofERC, an organization whosemembers deal with human resource issues.

“No one should be panickingright now, (but) we will be suggesting that every organiza-tion pause and have an in-depth conversation with

their consultants and brokers,” Mr. Perry said. “There isthe opportunity to plan accordingly.”

The Patient Protection and Affordable Care Act, as thebill formally is called, was signed into law last Tuesday,March 23, and is expected to provide coverage for 32 million Americans who aren’t covered by health insur-ance now. Various parts of the bill will be phased inthrough 2018, but businesses can expect to begin feeling

“The biggestfear and con-cern is we don’tsee (the bill) asreally helpingout businessestoo much.” – Pat Perry, president, ERC

PLUS: LESS EXTRAVAGANCE ■■ ART OF NEGOTIATION ■■ & MORE

20100329-NEWS--1-NAT-CCI-CL_-- 3/26/2010 3:01 PM Page 1

OUR LETTERS CARRY THE STRENGTH OF NUMBERS

weatherhead part-time

To learn more, join us for an open house.

April 3rd, 9am – 11am | April 6th, 7pm – 8pm

or visit online at weatherhead.case.edu.

Weatherhead’s Part-Time MBA program ranked #14 in the nation– BusinessWeek 2009

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 29-APRIL 4, 2010

CORRECTIONS

■ A March 22, Page 3 story about Lakewood Center North incorrectly iden-tified a New York company that provideddata on distressed commercial properties.The correct name is Real Capital Analytics.

■ The March 22 list of Largest Shopping

Centers reported incorrect information for the number of stores and percentageof retail space occupied for Great Northern Plazas. The correct number ofstores is 40. Officials at the property didnot disclose the percentage of retail spaceoccupied.

COMING NEXT WEEKAll in the family

Audit Bureauof Circulation

Subscriptions: In Ohio: 1 year, $59; 2 years, $102.Outside of Ohio: 1 year, $102; 2 years, $180. 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. 1-888-909-9111or 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])Senior reporter: Stan Bullard ([email protected])Reporters: Shannon Mortland ([email protected])Jay MIller ([email protected])Chuck Soder ([email protected])Dan Shingler ([email protected])Arielle Kass ([email protected])Designers/reporters: Joel Hammond ([email protected])Kathy Carr ([email protected])Research editor: Deborah W. Hillyer ([email protected])

Cartoonist/illustrator: Rich Williams

Marketing/Events manager:Christian Hendricks ([email protected])Marketing coordinator:Laura Franks ([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) 1-888-909-9111

Category Percentage increase

All items 2.1%

Food -0.2

Energy (gas/household) 14.4

New vehicles 3.5

Apparel 0

Shelter -0.4

Transportation services 3.3

Medical care services 3.7

Crain’s identifies some of the region’smost storied family businesses, including Great Lakes Cheese Co.(pictured), a second-generation business. We’ll also look at third- andfourth-generation businesses. MARC GOLUB

WHAT’S UP? NOT MUCHSay this about the recession: It’s keeping most things cheap. During the12-month period that ended Feb. 28, the Consumer Price Index was upjust 2.1%, according to the Bureau of Labor Statistics. And the increasein the index for all items excluding food and energy was just 1.3%, thelowest since February 2004. (Energy was the big gainer, up more than14% during the past year as gasoline prices rose nearly 37%.) Here’show consumer prices break down over the last 12 months:


By ARIELLE [email protected]

The former National City Bank hastaken its merger with PNC FinancialServices Group as a chance to look atthings anew.

Whether it’s the way the bank workswith nonprofit organizations, how itsells customers and the products itpeddles or even the way it approachesdoing business in Cleveland, somethings have changed.

But others — like the employeeswho come face to face with customers — are the same. And PNCis even taking notes from NationalCity, so the former Cleveland bank’sDNA will live on in its new owner.

On April 12, PNC’s name willgrace the former National City offices across the region as the bankundergoes its conversion in thisarea. But Paul Clark, PNC’s regionalpresident for Northern Ohio, saidmost of the major changes have already taken place, and that they’reunilaterally for the better.

Mr. Clark also emphasized thatbecause the banks have similar values, the changes clients see willbe minor.

“It’s important to think of what’sthe same,” he said. “It’s the samepeople taking care of the customer.… It’s the same leadership team.”

But those leadership teams are operating in new ways. Because Cleve-land no longer is the bank’s headquar-ters city, almost everyone employed inCleveland outside of the operationscenter now is focused on doing what’sbest here, Mr. Clark said. That wasn’talways the case, he said, as head-quarters employees had their atten-tion diverted to other states where thebank was focusing on competition inthose markets and trying to enhance National City’s brand.

“Without the clutter of the corpo-rate structure, it’s just liberating,” hesaid. “We’re absolutely focused on the customer in a way that’s energetic andfresh.”

MARCH 29-APRIL 4, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHTTHE WEEK IN QUOTES“Anytime you put 32million more peopleinto the (health care)system, it’s going tobenefit us.”— Stephen Norton, spokesman for Steris Corp. Page One

“I’m glad to hear some-one is going to invest inCleveland. I think it’s agood time to positionyourself here.”— Geoff Coyle, a partner at Col-liers Ostendorf-Morris. Page One

Manufacturers’ dismal outlook thawsSurvey shows manufacturers optimistic aboutshort term amid activity gains, but remain waryBy DAN [email protected]

The new year is only threemonths old, but so far, so good, saymany in the local manufacturingsector.

They report widespread upticksin demand for goods ranging fromindustrial parts and highway lightingfixtures to medical devices and automotive components.

And the latest data from the Inde-pendence-based Precision Metal-forming Association backs up theiranecdotal reports. The group’sMarch survey of its North Americanmembers, many of which are inNortheast Ohio, shows that a majorityof companies are optimistic abouttheir near-term business and havecalled back workers who were laidoff in the teeth of the recession.

The survey shows 54% of respon-

dents reported that their daily ship-ping levels were higher in March thanthey were in December. Thatmatched the same percentage thatreported seeing an increase in busi-ness back in October — though the numbers turned worse when members were polled in Decemberand January and, each time, onlyabout one-third of respondents saidbusiness was up.

Perhaps even more heartening forthe general economy, manufacturershave been calling back their laid-offworkers. In March, 58% of the survey’sparticipants said they no longer had

FILE PHOTO/MARC GOLUB

Greg Stiles, owner of Heights Guitars in Cleveland Heights, died Feb. 8. Efforts are under way to keep thebeloved independent guitar specialty store going.

LEGACY ROCKS ONAfter death of Heights Guitars owner, widow tries to orchestrate

sale of storied independent music shop to carry on business

By DAN [email protected]

The rock ’n’ roll capital lost an asset on Feb. 8,when Heights Guitars owner Greg Stiles died.

Now, many in the guitar community hopehis store at 2128 Lee Road in Cleveland Heights

can find a way to survive as one of the last independentguitar specialty stores in the area.

If his widow, Nina Stiles, has any say in the matter,that’s exactly what will happen. She said she is tryingto negotiate a sale of the business to two of Mr. Stiles’former staff members. But if that deal can’t be workedout, she’ll try to find another owner-operator who willrun the business.

“The last thing I want to have to do is stand at thedoor and watch everything go out one piece at a time,”Mrs. Stiles said.

Mrs. Stiles said her husband died within three weeks of being diagnosed with pancreatic cancer — never believing his illness would take his life, even up to the end.

“I don’t know how to run the store. I don’t know howto do appraisals and repairs — he spent 30 years perfecting those skills,” Mrs. Stiles said.

COMING UP

Crain’s is seeking potential pro-filees for its Women of Note section,which will run in the July 19 issue.

To submit a nomination, use theonline nomination form at our website, www.CrainsCleveland.com.You also may send a nomination toeditor Mark Dodosh via e-mail [email protected]. The nomina-tion should be no more than onepage. Please put “Women ofNote” in the subject line.

Nominations via regular mail canbe sent to Mr. Dodosh at 700 W.St. Clair Ave., suite 310, Cleveland,44113. The deadline is 5 p.m.Tuesday, April 13.

“The summer monthsare the dark days of theconvention industry.… We’re thinking outside of the box.”— Chris Fassnacht, who operatesthe Great Lakes Expo Center.Page 11

“It’s been a pretty dry18 months for specialevents.”— Margy Judd, CEO of Execu-tive Arrangements Inc. Page 13

Time period Up Same Down

March 2010 54% 36% 10%

December 2009 37 36 27

September 2009 53 30 17

June 2009 14 37 49

March 2009 9 18 73

GOOD ATTITUDEThe Precision Metalforming Association each month gauges its members’ attitudesabout business conditions. March numbers reveal increased shipping levels:

Compared to three months ago, current daily shipping levels are:

December 2008 4 17 79

See GUITAR Page 17

See PNC Page 18

See SURVEY Page 6

Nat City takeson PNC ways,and sometimesvice versaName change marksformal step in transition


its effects almost immediately.To be implemented within 90

days of the bill’s signing is the creation of a high-risk pool for people with pre-existing conditionsto obtain health insurance, said SteveMillard, president of the Council ofSmaller Enterprises small businessadvocacy group. Many people previ-ously have been denied insurancedue to pre-existing ailments, or thepremiums have been too high forthem to afford insurance.

Also, starting in September, parentswill be able to keep their adult children up to age 26 on their healthinsurance plans, children cannot bedenied coverage due to pre-existingconditions, coverage cannot be rescinded for anyone except in the

case of fraud, and insurers cannotplace lifetime limits on coverage.

As a result, health insurers likelywill raise premiums, said Keith Ashmus, a partner at Cleveland lawfirm Frantz Ward and chairman ofthe National Small Business Associ-ation in Washington, D.C.

“Premiums are going to go upprobably pretty quickly to accom-modate the changes taking placesoon” and to avoid justifying thosepremium hikes, as will be mandatedin 2011, Mr. Ashmus said.

In the meantime, businessesshould prepare themselves for theprovisions that will directly affectthem, sometimes in a positive way,professional advisers say.

“Firms with 25 or fewer employeesand average annual wages of less

Bill: Businesses may be on short end


continued from PAGE 1

than $50,000 per employee can receive a tax credit of up to 35% ofhealth insurance premiums by pickingup at least half the premium cost” ofhealth insurance, said Amy Leopard,head of the health care group atCleveland law firm Walter & Haver-field LLP.

That tax credit bumps up to 50%in 2014, Mr. Millard said.

In addition, companies with fewerthan 10 employees who earn an average annual wage of less than$25,000 will receive a full tax creditfor paying for at least half their employees’ health care premiums,Ms. Leopard said.

The fine printWhether the tax credit will moti-

vate employers to extend insurancecoverage to their workers is open todebate.

COSE’s Mr. Millard said a tax creditlikely won’t be enough to sway smallcompanies to provide insurancecoverage for employees if they don’talready do so because of the addedcost. And, under the health bill, com-panies with fewer than 50 employeeswill not be mandated to provide insurance and will not be penalizedfor not providing coverage, he said.

Still, Mr. Millard said, “Whetheryou are for or against the bill, therewill be some benefits, especially forentrepreneurs who don’t have accessto health care today.”

However, there are catches, espe-cially for midsize and large employers.

Individuals will be required to carry health insurance, but if theyearn less than $58,280 for a family oftwo, they will receive tax credits tohelp pay those premiums. This iswhere the health bill could get stickyfor companies with more than 50employees.

If a business with more than 50workers has at least one employeewho receives a tax credit to help cover the cost of insurance premiums,the company must offer affordable insurance or pay a fine of $2,000 foreach employee after 30, Walter &Haverfield’s Ms. Leopard said.

The fine would increase to $3,000per employee after 30 if the insurancethe company offers is deemed unaf-fordable, she added. The federal gov-ernment would deem an employee’scontribution to his or her health carepremiums unaffordable if it exceeds9.5% of the employee’s householdincome, Ms. Leopard said.

ERC’s Mr. Perry said no one hassuggested that the health reform billactually would help companies reduce their own costs.

“We will see organizations takinga hard look at what employee bene-fits they offer and what they shoulddo in light of what has been passed,”he said.

Looking for the work-aroundIn 2014, employers can expect pre-

miums to rise again as insurers nolonger will be able to deny coverage toanyone with pre-existing conditionsand cannot impose annual limits oncovered care, Mr. Ashmus said. Thesemandates will replace the temporaryhigh-risk pools created this year.

Both COSE and ERC will be offeringseminars and workshops to educatemembers on the reform bill as thegovernment irons out the details.Until then, they are urging employ-ers to call them with any questions.

“Whether it’s in the form of in-creased rates or additional taxes, thisis going to keep consultants and at-torneys busy for quite some time,”Mr. Perry said. “There will be a num-ber of folks who are going to be look-ing for ways to work through andaround what’s been passed.” ■


Mr. Stripe said. Nonetheless, the tax,which goes into effect in 2013, mightmake it harder for young medical device companies such as Ortho-Helix to reach profitability, he said,noting that OrthoHelix is closing inon that point.

Among established medical devicecompanies, Invacare Corp. of Elyria,the world’s largest wheelchair maker, has been a vocal opponent ofthe tax. Invacare CEO A. MalachiMixon III in a January interview withCrain’s went so far as to say the taxwas the equivalent of “throwing ahand grenade in the middle of thehealth care economy.”

Yet another large medical devicefirm, Steris Corp. in Mentor, is “gen-erally very supportive” of the healthcare reform effort, said spokesmanStephen Norton.

The publicly traded maker ofmedical sterilization products is“concerned about the effects of thetax,” especially on smaller companies,but it believes the overall reformpackage will be good for the company,Mr. Norton said.

“Anytime you put 32 million morepeople into the (health care) system,it’s going to benefit us,” he said.

Invacare may not see similar benefits because much of its revenuecomes from the sale of wheelchairs,which people typically buy out ofneed regardless of whether theyhave insurance, said Lara Mahoney,manager of corporate communica-tions for the company.

Invacare believes the tax couldcost the company between $12 million and $14 million annually,Ms. Mahoney said. Invacare is working to get the U.S. Departmentof the Treasury to include its prod-ucts in the exemption for consumerproducts, but it already has cut some employee benefits and frozennonessential hiring in response tothe tax. The company still is consid-ering “long-term” responses such asraising prices and moving more jobsout of the country.

“We have to look at everything,”Ms. Mahoney said.

The kids have to eatLike Steris, Quality Electrodynamics

LLC expects to gain more than it willlose from health reform.

Not only does CEO Hiroyuki Fujitaexpect sales of the coils that theMayfield Village company makes formagnetic resonance imaging machinesto rise as more people get health insurance, but he believes his product won’t be taxed because itgoes inside other machines. A fewyears from now, however, when hiscontracts with various MRI machinemakers run out, there is the chancethe original equipment manufacturerscould demand his company cutprices to help them defray the tax’simpact, Dr. Fujita said.

“These OEM companies maycome back to us and say, ‘We some-how have to come up with more


Volume 31, Number 13 Crain’s Cleveland Busi-ness (ISSN 0197-2375) is published weekly, exceptfor combined issues on the fourth week of May andfifth week of May, the fourth week of June and firstweek of July, the third week of December and fourthweek of December at 700 West St. Clair Ave., Suite310, Cleveland, OH 44113-1230. Copyright © 2010by Crain Communications Inc. Periodicals postagepaid at Cleveland, Ohio, and at additional mailing of-fices. Price per copy: $1.50. POSTMASTER: Sendaddress changes to Crain’s Cleveland Business,Circulation Department, 1155 Gratiot Avenue, Detroit,Michigan 48207-2912. (888)909-9111.

REPRINT INFORMATION: 800-290-5460 Ext. 136

Devices: Local companies’ momentum may be slowed by legislation continued from PAGE 1 competitive prices,’” he said.

Anthony Ignagni, CEO of SynapseBiomedical Inc. of Oberlin, has yetto analyze all the ways the healthcare bill might impact the maker ofneurostimulation devices, but hedoes expect to get more business asmore people become insured.

“Just the number of patients thatwill be covered probably plays intoour benefit,” Mr. Ignagni said.

Count Bob Schmidt on Invacare’sside. The CEO of Cleveland MedicalDevices Inc., which develops devicesto monitor and treat movementand sleep disorders, declined to sayhow the tax might impact his company, but he expects manymedical device firms to cut staff

and research budgets in responseto the tax.

Mr. Schmidt added that it’s notwise to put a bigger burden onmedical device companies, becauseNortheast Ohio and other regionsare trying so hard to create jobs basedaround health care technology.

“Taxing those growing compa-nies is like taking away food from ateenager. From a growing child,”Mr. Schmidt said.

Randy Theken, founder of ahandful of Akron-based spinal implant companies that work under the Theken name, said he,too, expects the tax to slow research-and-development efforts and hurtmedical device companies.

“This could also be the first timein decades that we’ve seen medicaldevice manufacturers having to layoff personnel,” Mr. Theken said.

For better or for worseThe tax could have hit harder,

however: The Senate version of thehealth care bill was designed togenerate $40 billion over 10 years,beginning in 2010. The House version of the bill scaled thatamount down to $20 billion, and itwon’t take effect until 2013. Plus,just before passing the bill theHouse voted to lower the tax from2.9% and spread it among moremedical device companies.

The Advanced Medical Technology

Association of Washington, D.C.,pushed for the changes but said ina statement that the tax still is not “ideal.” It originally sought a provision that would allow smallercompanies to avoid it.

An industry source who askednot to be identified went further,saying the “regrettable” addition ofthe tax to the bill would hurt inno-vation. The source said the additionof people to insurance rolls won’tincrease sales for all companies, espe-cially those with products for non-elective procedures and for the el-derly, who have Medicare coverage.

“There are going to be folks thatcome out better and folks thatcome out worse,” the source said. ■



BMW Cleveland • 6135 Kruse Dr. • Solon • 1-866-210-6710www.BMWCleveland.com

* Monthly lease payments 2010 BMW 328i xDrive of $299 for 36 months. $5,124 due at signing includes first month’s payment, $3,800 down payment, $300 security deposit and $725 bank fee. Payment includes $2,500Spring Drive Credit. Monthly lease payments 2010 BMW 528i xDrive of $479 for 36 months. $5,204 due at signing includes first month’s payment, $3,500 down payment, $500 security deposit and $725 bank fee. Excludestax, title, license, registration fees and a documentary service charge. Lease financing subject to credit approval. Dealer contribution may affect terms. Mileage charges of $.20 per mile for miles driven in excess of 10,000 milesper year. Includes all factory incentives. Expires 3-31-10. See participating BMW centers for details and vehicle availability. ** Ultimate Service covers all factory recommended maintenance on all MY 2006 vehicles and newervehicles, as determined by the Service Level Indicator, for 4 years or 50,000 miles, whichever comes first. Exclusions from coverage: gasoline, gasoline additives, windshield washer additives, tires, wheels, wheel alignment, tirebalancing and rotation. All work must be performed by an authorized BMW center. See the Service and Warranty information booklet for more details and specific terms, conditions and limitations. ©2010 BMW of North Amer-ica, LLC. The BMW name, model names and logo are registered trademarks.

$299*/mo.for 36 months

or Purchase interest rate of 0.9% up to 24 months.

BMW Ultimate Service™

Pay nothing. 4 years/50,000 miles.The most comprehensive maintenance plan (including wear and tear items) in its class.**

The UltimateDriving Machine®

BMW2010 328i xDrive

BMW2010 528i xDrive

bmwusa.com1-800-334-4BMW

We’ve discovered that the better a car breathesthe more likely it is to take your breath away.

2010 BMW 328i xDrive 2010 BMW 528i xDrive

$479*/mo.for 36 months

Just because a vehicle offers breathtaking performance doesn’t mean you have to sacrifice fuel efficiency. It’s the balanceof rpm and mpg that inspired us to develop Valvetronic technology in our engines. Our Valvetronic system replaces thefunction of a traditional throttle butterfly with continuously variable valve-lift control, enabling the engine to breathe easilyeven at low rpms. The result? BMW has more models that get at least 28 mpg than any other luxury manufacturer. Withevery touch of the accelerator comes a seamless and instantaneous delivery of power as well as maximum fuel efficiency.

216.420.HITS

ON SALE NOW

12 TICKETS TO THE 12 BIGGEST GAMES

any of their work force on layoff.That’s up from 53% in January, whichwas the first time since November2008 that a majority of those responding said they were at fullstrength in terms of staffing. In April2009, only 15% of the survey’s respon-dents said they were at full staffinglevels.

Precision Metalforming Associa-tion president Bill Gaskin, announcingthe monthly results, said his members “are experiencing 20% to30% increases in orders and ship-ments compared to year-ago levels,when shipping levels were decliningprecipitously.”

“Metalforming companies remaincautious about the mid- and long-term outlook, but in the near term,business continues to improve,” Mr.Gaskin said.

A question of degreeTo be sure, there’s no shortage

of cautiousness in the market. Butmanufacturers contacted by Crain’slast week said PMA’s survey is correct— business is picking up.

How much it’s picking up, however,varies from one company to the next,and the strength of each company’srecovery is pegged to the growth of itsend market.

For instance, those serving themedical device, aerospace, infrastruc-ture or military markets report strongsales so far this year.

“We’re seeing it across most of ourindustries — nice solid activity — inmedical, aerospace and military,”said Eric Winbigler, president of Advanced Paint Technology in Cleveland.

Likewise, R-H Industries, whichmakes such products as wire cages foroverhead lights used in highway workand deck drains for navy ships, hasseen its business increase in recentmonths, said owner Tina Haddad.

“I brought back all the people I laidoff,” Ms. Haddad said. She said she letfive workers go last year but has calledthem all back since the beginning ofFebruary.

Even those companies servingsome of the worst sectors of the economy, such as the domestic auto-motive market, are seeing some increases, said Don Nicholson, CEO

of Advanced Secondaries in Cleve-land, which performs custom drillingand other machining operations forother manufacturers. About 70% ofthe company’s business is tied to theautomotive sector.

The question for many manufac-turers is whether the rebound in theirbusiness can be sustained — andthat’s affecting their hiring decisions.

“Manufacturers are afraid ofbringing new bodies on, because theydon’t know what’s going to happennext week,” Mr. Nicholson said.

Bottom’s upWhen those manufacturers try

to do more with less, they often turnto Advanced Secondaries to do machining on parts that normallymight be done in-house, Mr.Nicholson said.

Advanced Secondaries has beenable to recall eight of its workers — afar cry from just less than a year ago,when Mr. Nicholson had sent all ofhis workers home and drove the plantfloor all alone on a tow motor, he said.

Likewise, Cleveland-based HawkCorp, which makes brake and clutchcomponents for the automotive andindustrial markets, has seen its busi-ness bounce back this year.

“We’re in hiring mode now,” HawkCEO Chris DiSantis wrote in an e-mail to Crain’s.

Supertrapp Industries, a Clevelandmanufacturer of specialty motorcycleexhausts, also has seen business pickup, said president Kevin Berger, andthis year it called back the half-dozenemployees that were laid off in 2009.

But Mr. Berger echoes the cautionthat many manufacturers expresswhen asked whether market condi-tions have really turned around.

“Things are up — but compared towhat? The bottom,” he said. “But atleast things are starting to move in theright direction.”

It’s going to take some time formany manufacturers to regain alltheir lost business, said David Wilder-muth, president of Martindale Co. inLakewood, a manufacturer of sawblades and other cutting tools for machine shops.

“I think we’ll get back 5% to 10%of our business from 2009,” he said.“But we think a certain part of thecustomer base is just gone.” ■

Bil-Jac rollsout freezersfor shelves

in Akron and an Ingles store in NorthCarolina. Mr. Kelly said Bil-Jac now ispreparing to ship its first order of 250in-shelf freezers to various grocerychains in Ohio, Missouri, New England, North Carolina and Texas,although specific stores have yet to bedetermined.

“We’re going to put more freezersin Acme and Heinen’s stores, too” Mr.Kelly said.

It will cost Bil-Jac $1,000 to $1,500per unit to build and ship the freezersto stores, Mr. Kelly said. The compa-ny sees it as money well spent.

“The investment of putting a freezerinto the pet foods section of a grocerystore and the increase in volumewe’re seeing in products so far offsetsthe cost of the freezers,” he said.

Mark Roberts, category managerfor Heinen’s, said the Avon location

has a couple more months before itanalyzes sales and determineswhether the in-shelf freezer grew itspet foods category overall.

“At first, we lost sales because people were looking for the productin the frozen foods section, but saleshave been restored,” Mr. Robertssaid. “That happens when you moveproducts around.”

Mr. Kelly said Nottingham SpirkDesign Associates, a product inven-tion and development group inCleveland, designed the prototypeof the freezer a little more than ayear ago. California-based JimexCorp. manufactures the freezers.

The shelf can hold 24 five-poundand 10 two-pound frozen dog foodbags and eight bags of frozen treats.

“They’re easy to install. It just sitson the gondola,” Mr. Kelly said. ■

Survey: Some manufacturersbegin restoring staffing levelscontinued from PAGE 3

By KATHY AMES [email protected]

Bil-Jac Foods has come up with acool way for keeping its frozen dogfood cold.

An in-shelf freezer, which Bil-Jac istesting in three grocery stores — two ofwhich are in Northeast Ohio — isplaced within the pet foods aisle to in-crease the visibility and accessibility ofits high-end dog food products. Inmost stores, Bil-Jac’s dog food is foundwithin the frozen foods section, awayfrom the pet products aisle.

“It’s going to be so much easier nowto market this product,” said Jim Kelly, executive vice president of theMedina-based producer of dog foodsand treats, which does not spend a lotof money advertising its products.

Since the in-shelf freezers were installed in the three stores, Bil-Jac hasseen increases of 70% to 100% in thevolume of frozen dog food productssold at those locations. Shelves were installed last March at Heinen’sin Avon, then last fall at an Acme store

Medina-based Bil-Jacplans to shipmore in-shelffreezers togrocerystores inOhio and other states.PHOTO PROVIDED



600 Superior Avenue, East, Suite 2100, Cleveland, OH 44114216.348.5400

Carl J. Grassi Shawn M. RileyPresident Cleveland Managing Member

A business advisory and advocacy law firm

Attorneys on a Mission®

Your mission is our mission. We never lose sight of it.

Mission Super Heroes!

The attorneys at McDonald Hopkins are on a missionto help you motivate and retain your key employees

in the new economy.

Chicago • Cleveland • Columbus • Detroit • West Palm Beachwww.mcdonaldhopkins.com

ROUNDTABLEStrategies to retain your super heroes

Wednesday, April 7, 201011:30 a.m. to 1:00 p.m. EDT

Call 1.800.847.6424 or visit www.mcdonaldhopkins.com

Compensation strategies to retain your key employees

FREE INTERNSHIP POSTINGS CONNECT YOU TO TALENT

ONE-STOP ACCESS TO NORTHEAST OHIO’S COLLEGES AND UNIVERSITIES SIMPLIFIES YOUR SEARCH PROCESS

TRAINING MATERIALS AND WORKSHOPS ENHANCE YOUR RETURN ON INTERN

leeaarrn. eaaarnn. iintteernn.....

log on to www.neointern.net to find your next intern

>>

>>

>>

GOING PLACESJOB CHANGES

ARCHITECTUREPERSPECTUS ARCHITECTURE:Kenneth T. Misener to director ofstrategic planning.

FINANCEFIRST FEDERAL OF LAKEWOOD:Tiffany Cardenas to branch manager,Fairview Park. FIRSTMERIT CORP.: Robb C.Lightell and Tara T. Stephen to assistant vice presidents, portfoliobankers; Meghan M. Lambert toportfolio manager.KEYBANK: Lisa Kious McGovernto community development banker.

FINANCIAL SERVICEBCG & CO.: Timothy Stiller andDave Duma to associates. PROTIVITY INC.: Aaron Stamp tomanager. WELLS FARGO ADVISORS: WarrenS. Wernick to managing director;DeAnna M. Spear and Morris Beverage III to financial advisers.

HEALTH CARESOUTH POINT HOSPITAL: Dr.Dennis Kane to co-chief of staff.

INSURANCEBRUNSWICK COS.: Renee Gallagher to personal lines manager. HYLANT GROUP: Ken Barber toclient service specialist; Ann Brunelloto senior client service specialist;Megan Ewing, Tony Gielty, DianaJaworski, Christina Proctor andVicki Sharpe to client service assis-tants; Mary Gerding to client service executive; Sue Nisoff toclient service manager; Pam Santato senior client service manager. MEDICAL MUTUAL OF OHIO: DonnaPiko to director of contracts, certificatedevelopment and benefit compliance.

LEGALBONEZZI SWITZER MURPHY POLITO & HUPP LPA: Christine C.Cover and Mary E. Purcell toshareholder.MCMAHON DEGULIS LLP: SarahJ. Staley to associate. OGLETREE, DEAKINS, NASH,SMOAK & STEWART P.C.: Jason

Rothman to associate. SQUIRE, SANDERS & DEMPSEYLLP: Stephen P. Anway to partner;Massimo Capretta, Allen A. Kacenjar Jr. and ChristinaHenagen Peer to principals.

MANUFACTURINGBRUSH WELLMAN INC.: WilliamD. Nielsen to product marketing director, bulk products; ThomasHazen to global market manager,plastics tooling; Robert D. Bertin tomarket manager, global aerospace. SIFCO INDUSTRIES INC.: RandyKimberlin to senior quality engineer;Ann Klodor to quality assurancemanager; Tim Hebauf to heat treatsupervisor/plant metallurgist.

MARKETINGHOME TEAM MARKETING:Dan Malone to group director, stateassociations. ZIG.MARKETING: Lorraine Bivinto partner; Peter DeMichele to media director; Kris Patel to account strategist; Nicole Selzer to production manager.

NONPROFITVOCATIONAL GUIDANCE SERVICES: Adam Ross to development director.

REAL ESTATEK&S REALTY CO.: Emily Dennis tosales associate.RUSSELL REAL ESTATE SERVICES:Terri Czarnecki, Scott Smith andRita Bando to sales associates. TRANSACTION REALTY: LeeGoodman, Florence Tripp and TimAkhadov to sales associates.

SERVICECEFARATTI GROUP: Carmen Petrello to major account represen-tative.MFS SUPPLY: Brandon Guzman tonational account manager.

TECHNOLOGYMCPC INC.: Jane Graber to directorof shared services. MODIS CLEVELAND: Brad Friedelto business development manager. PARK PLACE TECHNOLOGIES:Matt D’Alessandro to accounting

WernickCardenasMisener

PikoBeverageSpear

RossMaloneStaley

supervisor; Megan Tobin-Jones todirector of marketing.

BOARDSASSOCIATION OF LEGAL ADMINIS-TRATORS, CLEVELAND CHAPTER:Mark Biddlestone (Benesch, Friedlander, Coplan & Aronoff LLP) topresident; Mike Krnac to past-president; Stephanie Cruz to president-elect; Andrea Hill to secretary; Nicole Tucci to treasurer. THE LEGAL MARKETING ASSOCIA-TION, OHIO CHAPTER: Dawn L.Campanelli to treasurer. OHIO COMMERCIAL REALTOR EXCHANGE ASSOCIATION: Maynard D. Hershberger (M.D. Hershberger Realty) to president.

Send information for Going Places [email protected].


To those of us who care deeplyabout the economic future ofNortheast Ohio, nothing tells asuccess story like this headline

atop one of our web stories last week:“Third Frontier Commission awards $4.3million to five NE Ohio tech companies.”

Written by Chuck Soder, the story explained that the latest awardsfrom Ohio’s innovative economicdevelopment program wouldspur further development offour companies that are creatingadvanced-materials technolo-gies and a fifth that’s in sensortechnology. The five grants werepart of more than $10 millionawarded last week to Ohio companies by the Third Fron-tier fund.

It proves that this program, which isbeing copied around the country and isup for renewal as Issue 1 this May, is doingexactly what it was designed to do: Helpcreate the kind of New Economy compa-nies — and the jobs they represent —that are Ohio’s hope for the future.

Voters should remember that thiselection is a renewal, and will not createa new tax. This bond issue, launched bythen-Gov. Bob Taft and approved by vot-ers in 2002, has paid big dividends for ourstate. According to an analysis by SiliconValley consulting firm SRI International,the Third Frontier technology invest-

ments had created 41,000 jobsby December 2008. By the sametime last year, that number hadswelled to 55,000.

Finally, we have a programthat is the envy of the nation,and it’s operating exactly as itsframers had envisioned. We’renot simply burning throughscarce state funds and resourcesto woo a plant from anotherstate or country; we’re creating

new companies that are growing and employing well-paid professionals.

In last week’s announcement, theThird Frontier awarded $1 million to AlphaMirror of Kent to develop and test a liquid crystal-based mirror for automakers. Kent Displays received

another million dollars to improve theperformance of the polymers in its liquid-crystal products.

A Lockheed Martin company in Akronreceived $1 million for improving thefabrics on the high-altitude airshipsthey’re developing for the U.S. military.Momentive Performance Materials ofStrongsville received nearly a milliondollars for high-tech lighting productsand Solon’s Pressco Technology receivedjust a little more than $400,000 for sensordevelopment for the bottling and foodpackaging business.

These five are among the Third Fron-tier-supported companies that have produced more than $6.6 billion in totaleconomic impact in Ohio, according tothe group pushing for passage of Issue 1.Half of the program’s cost already hadbeen repaid in tax receipts by the end of2008. Venture capital investment in ourstate from 2003 to 2008 grew 2.5 timesfaster than rest of the nation.

The Third Frontier is an idea thatpromised much and delivered more. Wedesperately need for it to continue. ■


Get the axT

oo many government bodies have yet tomake the type of serious cuts in staff, payrolland benefits that most private-sector employers imposed last year as the recession

battered their bottom lines. They need to do theirtaxpayers a favor and take an ax to their personnelbudgets so they’re aligned with what is likely to bean extended period of depressed tax receipts.

The numbers are inescapable, and they’re notpretty. The latest Census figures show state tax collections in Ohio in the third quarter of 2009 totaled $5.6 billion, down 8.8% from nearly $6.14billion in the third quarter of 2008.

That’s a drop of more than a half-billion dollars,and that decline only covers a three-month period.Lucy Dadayan, an analyst at the Rockefeller Instituteof Government at the State University of New York,said the weakness in tax revenue that nearly allstates are seeing is expected to continue “well into2010, if not further.”

Yet even in the face of this falloff in revenue, thestate of Ohio managed to reduce its payroll last yearby only 1.5%. Worse still, many state agencies actually added to their payrolls.

We’ll accept that the recession has increased thedemand for certain social services, such as Medicaidand unemployment benefits, and therefore makespersonnel cuts in these areas tough. But for manydepartments, life goes on as before, which indicatestheir leaders lack the will or guts to rein in their costs.

Many private-sector employers cut staff by anywhere from 5% to 20% last year and reduced thecompensation of remaining employees by similarpercentages. We haven’t seen that level of sacrificeat most government agencies, whether municipal,county or state. Many seem to dabble more alongthe fringes, freezing pay and letting attrition reducetheir staffs rather than take an aggressive approachwith their personnel expenses.

A big problem for government bodies is that manyof their employees work under union contracts,which make unilateral changes in pay and benefitlevels impossible. This is where determination enters the picture.

With their budgets under duress, elected officialsand their surrogates must look union leaders squarein the eye and say, “We’re going to eliminate thejobs of 10% of your members unless you take a 5%pay cut and start paying more of your health insur-ance.” This wouldn’t be a negotiating ploy; thechoice for workers would be either absorb some ofthe same hits to your paychecks that many of thetaxpayers who pay your salaries have taken or seeyour co-workers lose their jobs. You make the call.

It isn’t a pain-free process. Just ask the city of Akron,which is trying to negotiate contract concessions withthe city’s five unions in order to balance its budget.

Union leaders think the cuts should come fromelsewhere. But as Akron finance director DianeMiller-Dawson recently stated, “We simply don’thave the revenue.”

It’s going to become a familiar refrain at all levelsof government. Government leaders must be prepared to wield an ax if personnel costs can’t bebrought down in another manner.

FROM THE PUBLISHER

AND COUNTING ...

BRIANTUCKER

Tech initiative’s May renewal a must

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

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

Crain’s Cleveland Businessis celebrating tis 30th year asNortheast Ohio’s premiersource of business news witha special double issue, whichwill feature profiles of the 30most influential Clevelanders.

As part of the celebration,we also are reflecting on themost memorable events of thepast three decades with weeklypolls — some of which can befound in this space — triviaquestions, online content andvideo interviews.

You can get in on the fun byvisiting CrainsCleveland.com/30thanniversary.

What local woman has been a good role model for aspiring woman entrepreneurs?(Asked at a City Club of Cleveland forum on “Emerging Female Leadership” sponsored by Cleveland 2.0.)

LAURA PETTIT RUSICKSagamore HillsPresident, OPTSolutions Inc.Jennie Zamberlan, owner ofAvantia Inc., information technology consultants. She’sjust got a great entrepreneurialbackground. She’s very willingto talk to people and she givesgood advice.

KIMBERLY HISTClevelandSprout ConnectionsBeth Mooney, vice chair, KeyCorp.She does a lot of things in thecommunity, in particular the Key4Women program (which provides education, networkingand financing for women-ownedbusinesses). People like Bethare great role models.

ELLIE CHALKOMentorCynergies Solutions GroupApril Miller Boise, partner incharge of the Cleveland office ofthe Thompson Hine LLP law firm.The whole Thompson HineSpotlight on Women program(which Ms. Miller helped develop)helps women in business withideas, influence and mentoring.



Products underwritten by Nationwide Life Insurance Company.

© 2010 Nationwide Better Health. Nationwide, Nationwide Better Health, the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company.

Some things are impossible to plan for. Nationwide Better HealthSM has all the right group benefits to keep employees protected when they need it most.

For more information, contact:

Jim Mohler 412.491.8000 [email protected]

“I’M PLANNING TO GET A CAVITY IN MYSECOND PREMOLAR,

I’M SAVING FOR WHEN I FALL OFF A LADDERIN EARLY SPRING.”

BUT FIRST

Tired of Being Screwed?Then stop hiring fly-by-night “roofing contractors” whose

only office address is wherever their pick-up truck happens to be parked at the time!

The no-insurance, irresponsible operators are driving the few remaining honest roofing contractors out of business. Unless the consumer gets wiser, ultimately there will be no one responsible left! We are looking for a few wise consumers.

If you fit the bill, call

CAREYRoofing Corp.

216•881•1999www.careyroofing.comfounded in 1946MEMBER: National Roofing Contractors Association

Achieve.RON LEDIN

PRESIDENT & CEO, MIDDOUGH, INC.CLASS OF ‘68

Learn how our alumni engage at: www.csuohio.edu/alumni

Roetzel restructuring focuses on practicesFirm aims to enhancecollaboration, expandits Cleveland footprint

Huntington: Building’s vacancy likely will go up

group would have total control ofthe property next year, clearing theway for the sale of the building to anew owner.

Mr. Glickman was on the phonewhen Crain’s called his office lastTuesday morning, March 23, and hedid not return the call that day. Healso did not return two calls fromCrain’s over the past three weeks inquiring about rumors the buildingis on the market.

Michael Boeschenstein, the Hinesproperty manager running theHuntington Building, declinedcomment.

Optima acquired One ClevelandCenter in May 2008 and 55 PublicSquare in July 2008 in multimillion-dollar deals. Mr. Schochet in 2008said the company has interests inindustrial and property ventures ineastern Europe and is acquiring realestate throughout the United States.

A prospective buyer for the Huntington Building with a stake inCleveland sounds like good news toGeoff Coyle, a partner in the ColliersOstendorf-Morris brokerage whoworks in the office market.

“I’m glad to hear someone is going to invest in Cleveland. I thinkit’s a good time to position yourselfhere,” Mr. Coyle said. “It’s a charming,fascinating building with high ceilings and a great banking lobby.It’s a classic building with retail tenants on the lower floors and offices above. I’d hate to see it godormant.”

Wide open spacesDormancy is a risk because a

hulking building with 1.36 millionsquare feet of office and retail space

won’t be easy to fill in the currentmarket. About 24% of Huntington’sspace already is available — a staggering 335,000 square feet, according to online realty dataprovider CoStar. And plenty moreempty space is slated to follow.

The building’s namesake, Hunt-ington Bank, has signed a lease andplans to move late this year or earlynext year to the former BP Tower,now known as 200 Public Square.

Meanwhile, two other big Hunt-ington Building tenants — the Ernst& Young accounting firm and theTucker, Ellis & West law firm —have inked deals to serve as the anchor tenants for a proposed officebuilding at the Flats East Bank project in Cleveland. The WolsteinGroup and Fairmount Properties,the developers behind Flats EastBank, have said they hope to breakground for their office building andhotel this year — if they complete acomplex financing package.

Various real estate insiders spec-ulate the Huntington Building mightbe converted to residential or hoteluse, or a mix of uses to produce moreprofits. The structure has a 1,000-car parking garage that would beparticularly valuable in a residentialconversion.

Colliers O-M’s Mr. Coyle said theHuntington Building is likely tomaintain an office component in amixed-use redo, but he is not sure ifthe structure — with its large floorplates — accommodates conver-sion to housing. Moreover, lendershave little taste for housing-linkedlending in a recession that manyblame on a housing downturn.

The pending master lease expira-tion puts the building’s many retail

tenants in limbo because their leasesautomatically expire at the same time.

Joe Scafidi, owner of Joseph ScafidiInc. custom tailors and shirtmakers inthe building, said word of a prospec-tive buyer was “not total news” because many tenants expectedsomething to occur soon — either asale or a redo. Mr. Scafidi said he wouldentertain staying in the building.

“I’ve been in this building 26 yearsand on this block for 41 years, mostof my career,” Mr. Scafidi said in aphone interview March 23. However,he noted he might like to move toone of the building’s empty store-fronts that face the street. ■


our real estate lawyers shouldn’t be communicating, interacting. Ithelps to strengthen and enhancethose relationships. It helps to expand the platform for many ofour lawyers.”

He said the moves also improveRoetzel’s “bench strength” firmwide.

Mr. Blackham is now one of threenew national practice group chairsat the firm, along with fellow Clevelander Robert B. Casarona andMichael S. Yashko, in Florida. DougSpiker has been named partner-in-charge of the Cleveland office. For-mer state Attorney General JimPetro is now the Columbus office’spartner-in-charge.

Mr. Spiker said one of his goals atthe firm is to increase the number ofattorneys in the Cleveland office,which already has grown “substan-tially” over the past 10 years. Thefirm, which has more than 220 attorneys across its footprint, hasabout 40 attorneys who spend all

their time in Cleveland, and another15 or so who split their time between Akron and Cleveland. ItsAkron office is its largest, with morethan 50 lawyers.

In two years, Mr. Spiker said, hewould like to have more than 50 attorneys in Cleveland.

“Every scenario you could conceiveof, we’re willing to explore,” he said.“There are opportunities that exist,and we want to seize those.”

The firm also is looking to acquire new offices in other Mid-west states and in the Carolinas.

In Cleveland, Mr. Spiker said thefirm has a chance to improve itsstanding in its corporate business,creditors’ rights, labor and employ-ment, environmental and intellec-tual property groups.

“We think there are growth opportunities here,” he said. “If theCleveland office grows, it’s good forthe firm. If the firm grows, it’s goodfor Cleveland.” ■

By ARIELLE KASS [email protected]

The law firm Roetzel & Andress isoverhauling its management struc-ture to focus more on practice groupsand less on individual regions, andhas named a new partner-in-chargeof its Cleveland office who said hewants to expand the firm’s namerecognition and reach in the city.

Previously, the law firm’s 11 offices in Ohio, Florida and Washing-ton, D.C., were managed by state. ButBob Blackham, former partner-in-charge of both the Cleveland andOhio offices, said the firm didn’twant to be a firm of silos.

“We are one firm,” Mr. Blackhamsaid. “There’s no reason why all


EEMMPPLLOOYYEERR CCHHAALLLLEENNGGEESSEEmmppllooyyeerrss aarree ccoonncceerrnneedd aabboouutt tthheeiirr eemmppllooyyeeeess‘‘wweellll--bbeeiinngg nnooww aanndd iinn tthhee ffuuttuurree.. KKeeyy iissssuueess iinncclluuddee::

■ EEmmppllooyyeeeess mmaayy bbee sseettttlliinngg iinn,, bbuutt aarree ffrruussttrraatteedd aabboouutt aaddvvaanncceemmeenntt.. WWhhaatt aarree tthhee kkeeyy rriisskkss ffoorr kkeeeeppiinngg aanndd eennggaaggiinngg ttaalleenntt??

■ WWoorrkkeerrss kknnooww tthheeyy’’rree rreessppoonnssiibbllee ffoorr tthheeiirr ffuuttuurreess,, bbuutt wwoorrrryy aabboouutt tthheeiirr aabbiilliittyy ttoo hhaannddllee iitt.. IIff ccoossttsshhiiffttiinngg ggooeess ttoooo ffaarr,, wwhhaatt rreeaaccttiioonnss aarree lliikkeellyy iinn tteerrmmss ooffmmoottiivvaattiioonn aanndd ppeerrffoorrmmaannccee??

* Insights from Towers Watson’s 2010 Global Work ForceStudy

KKEEYY RREEMMAARRKKSS““AAss oorrggaanniizzaattiioonnss aarree pprreeppaarriinngg ffoorr tthhiiss ppoosstt--rreecceessssiioonnaarryy ttiimmee ffrraammee,,tthheeyy hhaavvee aann ooppppoorrttuunniittyy ttoo ttaakkee aa sstteepp bbaacckk aanndd ffiigguurree oouutt wwhhaatt tthheeyyaarree ggooiinngg ttoo ffooccuuss oonn ggooiinngg ffoorrwwaarrdd..””

— Julie Womack, senior consultant at Towers Watson

““WWee aarree ccoonncceerrnneedd aabboouutt oouurr kkeeyy ttaalleenntt ssiinnccee tthheeyy mmaayy bbee aatt rriisskk aannddmmaayy ggoo ttoo ootthheerr ccoommppaanniieess..””

— Phil Goldstein, executive director of human resources at American Greetings

AABBOOVVEE:: Panelists discussed workplace issues. They are (from left): Phil Goldstein, exec-utive director of human resources at American Greetings; Ann Killian, vice president of human resources at Ferro Corp.; Tom Matthews, director of career services at CaseWestern Reserve University; and Julie Womack, senior consultant at Towers Watson.LLEEFFTT:: Crain’s editor Mark Dodosh moderated the business breakfast.

Towers Watson’s Julie

Womack sharedinsight on the

2010 GlobalWork Force

study with Scott Hersh, district salesmanager for

ADP NationalAccount Services.

Crain’s Cleveland Business and sponsorTowers Watson convened a panel March10 to address the realities of the employer-employee relationship in a post-recession

environment. The panel was part of the Crain’sIdeas at Dawn Business Breakfast series.

This event addressed motivating and retaining talent in a challenging economy, and Northeast Ohio’s human resources executives had no shortage of ideas on how to dealwith a recession-battered work force.

For more information about the Crain’s Cleveland Business Breakfast Series,

visit www.CrainsCleveland.com/breakfast.

For a recap of the breakfast event, visit the Crain’s podcast at:

www.CrainsCleveland.com/section/audio.

The next Crain’s Breakfast Series event is 7:30 to 9:30 a.m. April 22 at the Doubletree Hotel, Downtown Cleveland. The topic is “2010 Green Outlook: Examining NortheastOhio’s Environmental Economy.” To register, visit www.CrainsCleveland.com.

BBRREEAAKKFFAASSTT SSEERRIIEESS RREECCAAPP

HR experts say keeping best employees during recovery will be a challenge

Crain’s Cleveland Business Custom PublishingSPECIAL ADVERTISING SECTION

About 200 people attended the business breakfast on motivating and retaining top talent in a tough economy.


By KATHY AMES [email protected]

Despite some market inactivity, anew expo center in Euclid doesnot appear to be crowdingNortheast Ohio’s meetings and

convention industry. Indeed, the newvenue might even serve as a complementto existing and planned facilities.

Local meeting planners say that eventhough the 215,000-square-foot GreatLakes Expo Center will compete with other regional venues on some levels, itspresence likely will enhance the region’sevent landscape.

“It gives customers a choice when they

In February, event industry veteran Jeff Price was namedpresident and CEO of ExperientInc., an integrated meeting

planner based in Twinsburg.Mr. Price most recently was execu-

tive vice president and chief operatingofficer of Freeman, an event servicescontractor based in Dallas, where heoversaw 4,000 employees across 18offices. He also is a past chairman ofthe International Association of

Exhibitions andEvents’ board of directors andhas served on avariety of otherindustry advisoryboards.

“Jeff is the rightexecutive tomove Experientinto the next

phase of its evolution,” said AndrewW. Strauss, chairman of Experient’sboard and a partner with The River-side Company private equity firm, atthe time of Mr. Price’s appointment.

Mr. Price recently answeredquestions from Crain’s ClevelandBusiness regarding his plans for Experient and the state of the meet-ings and event industry as a whole.

Q: As the company’s new presidentand CEO, do you have any specificplans or focus areas for Experient?

A: Meet with the employees and getthem to understand that things arelooking better. 2009 was a difficultyear in our industry and for them,so I want to get out and meet asmany employees as possible withinthat first 60- to 90-day period oftime, listen and share with themand help them get the swagger backin their step.

Get with our customers and dothe same thing; help them under-stand our vision of “perfecting theevent experience,” but also listen tothem to see what we may be able todo together to better serve theirneeds now and in the future.

Get out and meet with prospects,even those with whom we may havedone business in the past, listen fornew service opportunities and impress them with how, if they wereworking with us, they’d be sleepingbetter at night.

And I want to get out there at industry events, walking the talk, byparticipating and speaking at face-to-face shows and meetings, buildingExperient’s reputation as a thoughtleader.

Q: What do you see as key growthsegments in the meetings andevents industry in the next fiveyears?

A: Return to pre-2008 corporatemeeting levels — the general eco-nomic upturn will create a reboundas companies return to face-to-face

EVENT PLANNINGI N S I D E

MARCH 29-APRIL 4, 2010 CRAIN’S CLEVELAND BUSINESS 11

12 CLEVELANDBUCKET LISTCHECKS OUT

GREAT SITES.

NEW ADMISSION

Event planners say Euclid expo center complements region’s meeting, event sector

Price

JEFF PRICEPresident and CEOExperient Inc.

THEINTERVIEW

See INTERVIEW Page 12

See CENTERS Page 14

PHOTOS PROVIDED

The Great Lakes Expo Center in Euclid is a new entrant to Northeast Ohio’s meeting and event planning industry. The expo center opened in Januarywith the Cleveland Home & Garden Show, which previously had been at the I-X Center in Cleveland.

“It gives customers a choice when they are looking at Cleveland to host an event.”– Deborah Hermann, director-at-large, International Special Events Society’s Cleveland chapter

Cars line up for the Cleveland Home & Garden Show. The 10-day eventdrew about 62,500 people, more than the 55,000 its producer, Exposi-tions Inc., had expected.

Solon-based Marketplace Events held the Great Big Home & Garden Expoat the I-X Center. Attendance totaled 79,000 for the Feb. 6-14 event.

INSIDE: Northeast Ohio had three home and garden shows this winter, in Cleveland, Euclid and in Akron. Attendance figures varied, though

some of the lull in traffic was attributed to bad weather. Page 14


meeting solutions.Social media augmentation of

live events will grow as these prod-ucts evolve from “wild, wild west”products to industry standards.

Live simulcast participation for


For more info: www.ExecutiveCaterers.com and click on Corporate Club or call 440.449.0700

Sports Director,WTAM 1100

MIKESNYDER

Columnist,The Plain Dealer

BUDSHAW

Sports Director,WKYC Channel 3

JIMDONOVAN

‘More Sports & Les Levine’,Time Warner Cable

Moderated byLES LEVINE

Thursday, April 8, 201011:30 am Registration • 12 Noon Lunch & Program

Sports Columnist,The Plain Dealer

EVENT PLANNING

Group helps fans ofNE Ohio experienceregion’s unique sites

Cleveland Bucket List in familiar territory

By JOEL [email protected]

What’s been on your to-do list for whatseems like ages, yet youjust haven’t been able

to get around to it?Three gentlemen — Bob Aber,

David Akers and Jeff Nischwitz, thefounders of event producer 3 GuysPresent — want to know, as theyare on a mission to provide fellowClevelanders the opportunity to seesome of the city’s most unique spots.

They’re doing it through theCleveland Bucket List, a 3 Guysspinoff that held its first event lastSeptember.

So far, the Cleveland Bucket Listhas opened attendees’ eyes to theCuyahoga River (and a super-choppyLake Erie); the Franklin Castle, anOhio City landmark long thought tobe haunted; and the newly renovatedCapitol Theatre, which featured a

showing of the Cleveland classic, “AChristmas Story.”

“All three of us share an abidinglove for Cleveland, and we get frus-trated by people having negative images of the city,” Mr. Akers said.“We looked around, and while allthree of us do a lot around town,there are plenty of things we haven’tgotten to.”

Messrs. Akers and Aber — colleagues at Warrensville Heights-based The Collaborent Group, agroup purchasing facilitator for local government entities,

nonprofits and businesses — arenative Clevelanders and Mr. Nischwitz, an attorney and founderof Think Again Coaching, is a trans-plant going on 25 years in the city.

The firm 3 Guys Present wasfounded in January 2008, and itwill hold its 10th event next month.It produces what the trio calls“highly relational” networkingevents: Everyone invites one person, and if you’re invited,you’re allowed to invite one person. Nametags purposely don’tinclude company names.

“If that company name is not there,then it starts with the people,” Mr.Nischwitz said. “From there, it’s fig-uring out what you can do together.”

A different experienceBucket List events — the ideas for

which are submitted by friends andcolleagues or generated over a fewbeers — are more experiential, Mr.Nischwitz said. The events are ac-tivity-based, so it’s a bit harder todevelop those relationships whenexperiencing something new.

That’s not to say it doesn’t happen:At the first Bucket List event, a September “three-hour tour” of LakeErie that quickly turned into a Cuya-hoga River tour due to a choppy lake,Chris Tjotjos made a handful of newconnections he still uses.

Mr. Tjotjos, president, CEO andowner of Westlake-based LogosCommunications, supplied the boatfor the tour’s 20 or so participantsand said after knowing just one personbefore the event, he’s still usinglessons learned from a book recom-mended by one of the participants.

“These events are good ways to tellForbes to jump in their own lake,” Mr.Tjotjos said, referring to the maga-


Interview select sessions at events, plus salesof archived sessions for additionalrevenues and event marketing afterthe event is over.

Q: Are the effects of the recession stillholding strong? Did any good comeout of the recession for the industry?

A: Coalition efforts of a strong industry

lobbying group spearheaded by the U.S. Travel Association is a bigplus. We now have an experienced“machine” in place to advocate forour industry in Washington on behalf of the meetings, incentivesand trade show industry.

The downturn in the economycreated a clear focus of the effec-tiveness of face-to-face meetings,

especially in support of the salesand marketing function.

Q: Is there any one area of themeetings and events industry thatwas more affected by the down-turn than another?

A: I think the banking/financial andresidential building industries’meetings were the hardest segmentshit, but the trickle-down effect of lowmeeting participation overall hashad the farthest-reaching effects. Idon’t think legislators or people ingeneral really understood how manyjobs were negatively affected by a reduction in business travel. Thenumbers of workers who supportthe travel industry infrastructure —servers, cab drivers, housekeepersand others — whose jobs were nega-tively affected by the downturn wassimply staggering.

Q: How has the evolution of technology and social mediachanged the world of events?

A: Think back a few years to the advent of the Internet. Everyonewas in a flurry to get a web site up

and running. Now having a 2.0web site is a given, a valuable andexpected tool. We’re in the sameplace with social media now.These tools will continue to evolvebut will soon become essentialtools for creating communitiesthat are engaged before, duringand after events.

Q: What are some of the top trends that you are seeing in yourindustry?

A: Increased interest in what wecall second-tier cities like Cleve-land due to their affordability andincreased competition in the marketplace overall.

The ability to monetize andquantify (return on investment) ofholding a meeting (for the eventorganizer) and participating in one(for the attendee) is a result, whichwill benefit the industry in the future.

There is a symbiotic relationshipbetween social media, the Internetand face-to-face meetings, onethat is just being realized, but thatwill be tremendously powerful going forward. ■

zine’s designation of Cleveland as theUnited States’ most miserable city.

Tim Schmidt, meanwhile, met theperson he’d eventually hire as thenew executive vice president forWestPark Direct, his downtownCleveland business-to-business telemarketing outfit, during theFranklin Castle event, which also included dinner at Momocho. (TheCapitol Theatre event was pairedwith dinner at Stone Mad, a new Detroit Shoreway restaurant; “We’retrying to marry unique things, like aunique destination and a uniquerestaurant,” Mr. Akers said.)

“Unlike most things, these areevents you actually look forward to,”said Mr. Schmidt, who also attendedthe boat tour. “It’s interesting to dosomething I’ve never done.”

Proving the Bucket List eventswon’t just be Cleveland landmarks,the trio is preparing its next event —the Bushwood Open — for April 14.Named after the fictional countryclub in the cult classic “Caddyshack,”the event is a traditional golf outing— 19th hole, skins game, mulligansavailable for purchase — at a mini-golf course, Firefly’s Minigolf at West-field SouthPark mall in Strongsville.

“We’ve created things that don’texist in Cleveland,” Mr. Nischwitzsaid. “There are lots of cool things todo in Cleveland; someone just has todo them. We’ll do them.” ■

The ClevelandBucket List visits some of the area’sunique sites.Participants explored thewaters of theCuyahoga River, for example.PHOTO PROVIDED



Events still conservative affairsBy DAN [email protected]

t might be awhile before mostfolks party like it’s 1999.

The world of special eventswas turned upside down

along with the global economy atthe end of 2008, and those whoplan, organize and host affairs forNortheast Ohio organizations saythe environment still is more oftenlike a wake than a gala.

There are fewer events, those that are being planned have smallerbudgets and continue to be less extravagant than in years past, andinvitees are being asked to footmore of the bill when attendingsuch gatherings as industry andtrade association conferences, saythose in the business.

“It’s been a pretty dry 18 monthsfor special events,” said Margy Judd,CEO of Executive Arrangements Inc.in Cleveland Heights.

In the event planning business,six months’ worth of cancellationsand no new bookings can equate tonearly a year’s worth of lost revenue,according to Ms. Judd. Because somany events are planned six monthsor more in advance, current eventsgot canceled and future events never got planned.

“Yes, people are starting to openup their purse strings a little again,”Ms. Judd said. “But there was a six-month period in late 2008 and early2009 where every client we had justcanceled and paid the retainer fee.”

A new, less glitzy, normalWhile Ms. Judd scoffs at the

question of whether things in the

special events and party arena areback to normal, she said they are atleast better than they were at the beginning of the financial crisis.

Denise Fugo is chairwoman andCEO of Sammy’s in the Flats, whichhas hosted Cleveland events since itwas founded in 1980.

“For Northeast Ohio, I don’t thinknormalizing is the right word,” shesaid. “I think a new normal is devel-oping here — there are just toomany corporate vacancies and toomuch residential real estate” on themarket.

The new normal might not benearly as much fun as the old one.

Ms. Fugo sees more nonprofitsthrowing smaller events, often withsmaller budgets. Corporations putoff planning events because theywere unsure of what to spend, thenneeded to plan them quickly.

“I was shocked by the number of calls we got in November fromfor-profit companies — for events inDecember,” Ms. Fugo said.

Many times, she said, corpora-tions are spending less than theyused to because they are no longerlocally headquartered after theywere bought out by out-of-town rivals. “You always do better with acorporate headquarters; they spendmore,” she said.

Nonprofits almost have to haveevents because they rely on them forfundraising, said Amy Pappas, ownerof aza events LLC in Cleveland. Butthey are trying to cut corners, bothto save money and so donors don’tthink money is wasted, she said.

“For instance, with catering, laboris a big cost,” she said. “It might be amatter of coming up with a creative

menu that requires less labor, butstill puts on a top-notch event.”

Meanwhile, nonprofit events tendto be smaller, according to Ms.Fugo, because donor attendees areharder to find.

“I believe we only had one event(of the last 30) that had more peoplethan in prior years,” said Ms. Fugo.“We had one that matched prioryears’ attendance, but everyone elsewas off by 30% to 50%.”

No more free ridesEven trade conferences, once

known for putting on not only bigevents, but for subsidizing the atten-dance of participants, are pinchingtheir pennies.

“It’s ‘get there on your own, andwe’ll take care of everything whileyou’re there, but we’re not payingfor airfare and hotels anymore,’”Ms. Judd said.

But the planners, or at least thosethat can, party on. Ms. Judd said sheknew of perhaps a dozen people inthe area who used to do event plan-ning. “They just don’t exist anymore,” she said.

What might be left are fewer planners competing for a smallerparty pie. On the bright side, at leastphones are ringing again and pro-posals are being written. And even ifthe glitz is slow to come back, theywill at least be busy helping thosewho need to have events do so suc-cessfully — and on budget.

“In the past few weeks, I’ve gottenout a handful of proposals,” Ms. Pappas said. “I do see it turningaround, and people have becomemore optimistic, especially in thelast four to six weeks.” ■

EVENT PLANNING

These days, venues may bemore open to negotiating dealsBy JAY [email protected]

No one has said it better thannegotiating trainer ChesterKarras: “In business, youdon’t get what you

deserve, you get what you negotiate.”And 2010 is expected to be a very

good year for meeting and eventplanners to negotiate, at least forthe short term.

“At this point, everything is nego-tiable,” said Dan Williams, vice pres-ident of sales at Positively Cleveland,the regional convention and visitors’bureau. “2009 was rock bottom;2010 we’re starting to see someuptick.”

But Mr. Williams said hotels andconference centers still are willing tomake attractive deals on hotel roomrates, meeting rooms and food andbeverage service.

“It’s still a buyer’s market so themeeting planners and the organiza-tions still have a lot of power rightnow,” he said.

PKF Hospitality Research, a research arm of San Francisco-based PKF Consulting, reported earlier this month that it expects hotel revenue to decline by 1.1% in2010 compared with 2009, eventhough it believes that hotel occupancy will increase by 0.3% to55.2%.

The firm reported that with national hotel occupancy below60%, it expects that rate discountingwill persist as hoteliers are eager tobuild a base of volume contractbusiness to reduce inventory.

“If you don’t (negotiate discounts),another city will,” said Mr. Williamssaid. “You don’t have to give theplanner or the organization everyconcession they ask for, but thereare certain things that may be cru-cial to the group — the number ofcomplimentary hotel rooms, freemeeting space, free Internet.”

A venue looks at the total revenuepackage for an event. The group’scommitment to spend on food andbeverage, audio and visual equip-ment and other incidentals mattersas does the group’s history of meet-

ing its commitment to fill rooms.Groups also can negotiate the

hotel-room guarantee. Most hotelswill require that a group guarantee acertain number of hotel rooms, butthe size of the guarantee and thepenalty if the number of rooms fallsbelow the guarantee are negotiable.

Hotels also might offer freemeeting space, with the amountusually tied to the number of hotelrooms used.

If a group is going to use 100 hotelrooms and wants a single meetingroom, the meeting space might becomplimentary. But if the same-sized group wants to tie up all of ahotel’s meeting space, to the pointwhere the hotel can’t book anothermeeting, meeting space likely won’tbe free of charge.

The further out a meeting isplanned, however, the less willingsuppliers may be to negotiate.“Once the economy starts turning,you’re not going to be able to getrates as good or concessions as favor-able,” said Hugh Easley, vice presi-dent of meetings and expositions forthe National Association of CollegeStores in Oberlin.

Mr. Easley said that likely won’taffect the annual event he sponsors— the Campus Market Expo —which earlier this month broughtmore than 7,000 people to Orlando,but it will hurt the ability to negoti-ate for small events.

“If you’re dealing with an eventthat’s only 100 or 150 people, andyou’re looking at 2013, (hotel andconvention sales people) are proba-bly not going to deal as much be-cause they’ll be thinking the econo-my will be roaring back,” he said.

Key to a group’s ability to negoti-ate low rates, good times or bad, isthe location and time of year, sayplanners and bookers.

Mr. Easley believes you shouldnegotiate, but a hotel or conventionsalesperson have a does bottom line.

“They may have a revenue man-ager who looks at the total packageand will tell a salesperson, ‘You’renot going to offer less than X,’” Mr.Easley said. “The hotels are in it tomake a profit.” ■

I



IT’S GOOD TO HAVE A TENANT REP. YOU WON’T BE TREATED LIKE PROPERTY.Most brokers represent property. We don’t. We’re your tenant representative. We represent you. Your company. And your interests.

AllegroRealty.comContact George Hutchinson:

216.524.0710 x104Smart move.

© 2009 Allegro Realty Advisors, Ltd.

EVENT PLANNING

are looking at Cleveland to host anevent,” said Deborah Hermann, director-at-large for the Cleveland chapter of the International SpecialEvents Society.

Dennis Roche, president of Posi-tively Cleveland, said venues such asthe Great Lakes Expo Center typicallyappeal to smaller events.

“I don’t see the Great Lakes ExpoCenter competing with the (Interna-tional Exposition) Center or down-town convention center,” Mr. Rochesaid.

The Great Lakes Expo Center,which opened in January in a former Kmart building, recentlygained six events after plans for theCuyahoga Convention Center inGarfield Heights fell through, saidDean Taylor, who was on tap to beexecutive director of the now-defunct project.

That 125,000-square-foot centerwas supposed to open in February inan abandoned Walmart, but nearbytenant Giant Eagle exercised its leasingrights to veto the building’s opening,and Garfield Heights Mayor VicCollova said he now believes the Walmart will remain vacant.

Chris Fassnacht, who operates theGreat Lakes Expo Center under 1200Babbitt LLC, said the facility has 15bookings through the fall, and thecompany is bringing new ideas to thetable to find ways to attract visitors.

For example, since the Great LakesExpo Center does not have eventsbooked during the warmer season, Mr.Fassnacht said he is in negotiationswith companies for outdoor events.He’s also considering bringing a custom-car night or outdoor barbecue

He said the facility, which willcater mostly to medical-related exhibits and conventions, won’t bea sufficient venue for some of the I-X Center’s consumer shows, suchas the Cleveland Auto Show and theI-X Indoor Amusement Park.

“Most of our events are too largefor downtown,” he said.

Still, he said new venues augmentthe area’s meeting and conventionindustry. “It’ll be just like when Jacobs Field, the Browns’ stadium andThe Q all opened,” Mr. Peterson said.

The I-X Center in November 2008signed a five-year lease extensionahead of its current lease expirationin 2014, which means the exposi-tion center has a leasing commit-ment that runs until 2019. “As longas we are making money, there isno reason not to extend it,” Mr. Peterson said.

Meanwhile, Gregg Mervis, vicepresident and chief operating officer of the John S. Knight Center,said bookings at the Akron facilityare solid, and he expects a small but

Centers: Operators anticipate turnaround in industrycontinued from PAGE 11

Northeast Ohio home, flower shows in bloomA new home and flower show

sprouted up this year in NortheastOhio, and even though attendancewas down for similar events at the International Exposition Center inCleveland and in Akron, the GreatLakes Expo Center in Euclid said itsshow’s traffic fared better than expected.

Chris Fassnacht, president andCEO of Expositions Inc., said the 67th

annual Cleveland Home & GardenShow held Jan. 22-31 drew 62,500people over 10 days, about 13.6%above the 55,000 the show producerhad projected.

“It was still a rough year for spon-sorships,” Mr. Fassnacht said.

The Cleveland Home & GardenShow moved this year from its long-

time home at the I-X Center to theGreat Lakes Expo Center.

Mr. Fassnacht said he expects tolose some traffic, but gain it in otherways.

“We’ll lose some attendees fromthe west and south, but converselywill gain it in other snowbelt coun-ties,” he said.

Meanwhile, Solon-based Market-place Events produced the Great BigHome & Garden Expo Feb. 6-14 at the I-X Center. Attendance wasnearly 79,000, which the I-X Centerestimates to be about 16% lowerthan it was last year during the Cleve-land Home & Garden Show.

Both the I-X Center and the 16th

annual HBA Akron Home & Flowershow, which was held Feb. 26-28 at

the John S. Knight Center, experi-enced a “slight decrease” in atten-dance from 2009 — and bothshows blamed the lower figures onbad snowstorms.

Attendance at the Akron event,which, until this year, had been trend-ing up, was about 9,000.

While home and garden shows at the I-X Center and Great Lakes experience some crossover in atten-dance, show producers say they don’tsee the smaller Akron show as acompetitor because it serves primarilyPortage and Summit counties.

“We actually view them as complementary to our show (at the I-X Center),” said Tom Baugh, presi-dent of Marketplace Events.

— Kathy Ames Carr

to the venue. “The summer months are the

dark days of the convention industry,”said Mr. Fassnacht, who also ispresident of event producer Expositions Inc. “We’re thinkingoutside of the box.”

Growing roomAlthough the I-X Center lost one

show to the Great Lakes Expo Center this year — the Ohio Promotional Products Association— Robert Peterson, president of I-X Center Corp., said smallershows such as this one represent amarginal piece of its business.

“We’d love to have it back, but the bread and butter of our

business is large consumershows,” he said.

The I-X Center hosts about 50events a year, including 10 to 12consumer shows, and while Mr.Peterson noticed a drop last yearin attendance — ranging from 10%to 20% — he thinks the market hasbottomed out, and by 2011, atten-dance will increase.

“Attendance had been increasingevery year until we hit 2009,” he said.

Mr. Peterson also dismissed thethreat of competition from theplanned medical mart and conven-tion center in downtown Cleveland,which will bring another 300,000square feet of exhibit space for meetings and conventions.

healthy increase over 2009.Skittish customers, however, are

booking events closer to their dates.Rather than traditionally bookingone year in advance, for example,they are reserving the event sixmonths ahead, Mr. Mervis said.

Bet on a reboundFor his part, Tom Baugh, CEO of

Solon-based event producer Market-place Events, is unsure of whetherthe market can sustain anothervenue like the one in Euclid. In Cuya-hoga County alone, there is at least1.58 million square feet of availableconvention space — not counting theGreat Lakes Expo Center — includingmajor hotels and meeting and event facilities, according to PositivelyCleveland.

“The big issue is whether theGreat Lakes Expo Center is viable,”said Mr. Baugh, whose firm recentlyproduced a home and garden showat the I-X Center and had plans toput on events at the failed Cuya-hoga Convention Center. “Onlytime will tell. It’s a tough time to bein the business.”

While meetings, conventions andother events these days tend to bemore conservative, scaled-downevents, echoing national industrytrends, some venue operators stillsay they are confident the regionalsector slowly will rebound.

Positively Cleveland’s currentfunding from Cuyahoga Countybed taxes dropped 21% over twoyears — from $8 million in 2007 to$6.3 million in 2009 — but Mr.Roche, the organization’s presi-dent, said this year so far has shownsigns of the decline flattening.

Collections of bed taxes, or taxeson hotel room charges, are one indi-cator of the current meeting and eventplanning industry’s performance.

With the planned casino sched-uled to come online in Cleveland by2012, “I expect by the end of ’11 andinto ’12, we’ll be back in business,”Mr. Roche said. ■

Register for free e-mail alerts andreceive:

■ The Morning Roundup: A collection of the day’s businessnews from Ohio’s daily papers

■ eCleveland!: A weekly guide to

arts and leisure in Northeast Ohio

■ Daily headlines: A collection ofCrain’s-produced news and blogitems from the day

SIGN UP NOW AT:CrainsCleveland.com/register

GET DAILY NEWS ALERTS FROM CRAIN’S!



LARGEST COMMERCIAL REAL ESTATE BROKERAGESRANKED BY NUMBER OF LOCAL AGENTS/BROKERS

Rank

NameAddressPhone/Web site

Number ofagents/brokers

Numberof FTEs

Square feet soldor leased 2009

Dollar value ofsales

transactions2009

Dollar value oflease

transactions2009

Number of salesand lease

transactions 2009 Top 2009 brokerTop local executiveTitle

1CB Richard Ellis Inc.200 Public Square, Suite 2560, Cleveland 44114(216) 687-1800/www.cbre.com/cleveland

47 150 6,200,000 $114,923,000 $234,608,000 385 Allen Wiant David Browningmanaging director

2Colliers Ostendorf-Morris1100 Superior Ave E, Suite 800, Cleveland 44114(216) 861-7200/www.colliersom.com

43 69 1,978,936 $45,211,500 $47,368,035 185 Barry B. Holtzer Warren L. Morrispresident, CEO

3Grubb & Ellis1350 Euclid Ave., Suite 300, Cleveland 44115(216) 861-3040/www.grubb-ellis.com

32 39 NA NA NA NA Terry CoyneRobert C. Nosalexecutive vice president,managing director

4Kowit & Passov Real Estate Group6001 - D Landerhaven Drive, Mayfield Heights 44124(216) 514-5100/www.kowitpassov.com

23 6 NA NA NA 147 Tori NookBrad KowitSteve Passovpartners

5Cresco Real Estate3 Summit Park Drive, Suite 200, Independence 44131(216) 520-1200/www.crescorealestate.com

17 8 4,620,000 $36,255,696 $82,541,232 286 Fred ChristieJoseph Barna, managing partner;Robert Garber, co-managingprincipal

5Jones Lang LaSalle Americas Inc.(1)127 Public Square, Suite 2410, Cleveland 44114(216) 861-7171/www.us.joneslanglasalle.com

17 21 2,810,968 $0 $248,444,455 73 Robert J. Roe Robert J. Roemanaging director

5The Krone Group2101 Richmond Road, Suite 1000, Beachwood 44122(216) 464-5900/www.thekronegroup.com

17 NA NA NA NA NA James Becker David Kronepresident

5Marcus & Millichap Real Estate Investment Services5005 Rockside Road, Suite 1100, Independence 44131(216) 264-2000/www.marcusmillichap.com

17 3 NA $63,712,042 NA 37 Michael S. Barron Michael L. Glassregional manager

5NAI Daus23240 Chagrin Blvd., Suite 250, Cleveland 44122(216) 831-3310/www.naidaus.com

17 8 1,847,000 $35,000,000 $25,000,000 137 Robert Brehmer Robert Brehmermanaging partner

10NAI Cummins Real Estate787 White Pond Drive, Suite A, Akron 44320(330) 535-2661/www.naicummins.com

15 2 1,366,000 $12,900,000 $15,900,000 131 Tom FoxJohn F. Herwick, CEOTom Fox, presidentBob Raskow, vice president

11Chartwell Group LLC1301 E. Ninth St., Suite 2210, Cleveland 44114(216) 360-0009/www.chartwellgroup.com

14 22 2,397,287 NA NA 93 David R. StoverMark S. Abood

Mac Biggarpresident

12Goodman Real Estate Services Group LLC25333 Cedar Road, Suite 305, Lyndhurst 44124(216) 381-8200/www.goodmanrealestate.com

12 13 506,129 $31,459,829 $51,671,995 109 Steven Altemare Randall J. Goodmanprincipal, broker

13Munsell Realty Advisors Inc.23250 Chagrin Blvd., Suite 255, Beachwood 44122(216) 504-4820

10 16 NA NA NA NA Tony Lehman Mark R. Munsellpresident

14Allegro Realty Advisors Ltd.8111 Rockside Road, Suite 250, Cleveland 44125(216) 524-0710/www.allegrorealty.com

9 10 NA NA NA NA NA George B. Hutchinsonpresident, CEO

14Arnold J. Eisenberg Inc.24500 Chagrin Blvd., Suite 120, Beachwood 44122(216) 831-6773/www.arnoldjeisenberg.com

9 2 1,242,000 NA NA 106 Steven B. Eisenberg Steven B. Eisenbergpresident

14Coakley Real Estate Co. LLC1382 W. Ninth St., Cleveland 44113-1231(216) 772-4700/www.coakleyrealestate.com

9 2 49,050 $445,000 $795,000 17 Francis M. Coakley Francis M. Coakleypresident

14RJ Wohl Co.24960 Center Ridge Road, Suite 300, Westlake 44145(440) 835-0300/www.rjwohl.com

9 10 NA NA NA NA Jack M. Sanfilippo Jack M. Sanfilippoexecutive vice president

18The Gatto Group29010 Chardon Road, Willoughby Hills 44092(216) 621-1800/www.gattogroup.com

8 2 NA NA NA NA Michael Gatto Steve Josephvice president

19Gerspacher Real Estate Group Inc.113 W. Liberty St., Medina 44256(330) 722-5002/www.sellingmedinacounty.com

7 2 544,934 $2,775,000 $4,189,691 74 James A. Gerspacher Troy Gerspacherowner

19Kelly & Visconsi Associates LLC28601 Chagrin Blvd., Suite 250, Cleveland 44122(216) 831-0300/www.kelly-visconsi.com

7 9 NA $6,000,000 $30,000,000 95 Greg Slyman Anthony T. Visconsipartner

21The King Group25550 Chagrin Blvd., Suite 300, Beachwood 44122(216) 831-9330/www.thekinggroup.com

6 40 NA NA NA NA NA Donald M. Kingpresident

21Pinnacle Real Estate Services4807 Rockside Road, Suite 270, Independence 44131(216) 328-1555/www.pinnaclecleveland.com

6 4 NA NA NA NA Doug Smith Donald M. Rudypresident, owner

21Reisenfeld & Co.3659 Green Road, Suite 315, Beachwood 44122(216) 765-8080/www.reisenfeld.com

6 1 NA NA NA NA David Cole Drew Sulzerpresident

21Weber Wood Medinger25800 Science Park Drive, Suite 150, Beachwood 44122(216) 464-7100/www.wwmrealestate.com

6 7 NA NA NA NA Alan W. Wood Gerald B. Medingerpresident

25Davison & Co.7580 Kimberly Lane, Cleveland 44026(216) 861-0600/www.davisonandcompany.com

5 2 NA NA NA NA Dyann Davison Dyann Davisonpresident

25Emmco Corp.3681 S. Green Road, Suite 201, Beachwood 44122(216) 292-3700/www.emmcocorp.com

5 20 NA NA NA NA NA Jeffrey E. Soclofpresident

25Mogen Real Estate Co.3296 W. Market St., Akron 44333(330) 873-1200/www.mogen.com

5 3 NA NA NA NA NA John A. Mogenpresident

28The BEC Group Inc.20575 Center Ridge Road, Suite 310, Rocky River 44116(440) 773-9912

4 2 NA NA NA NA NA Thomas L. Jelepisbroker

29Egar Steiger Associates24100 Chagrin Blvd., Suite 435, Beachwood 44122(216) 360-9090/www.egarsteiger.com

3 3 NA NA NA NA Steven Egar Steven Egarpresident

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee theselistings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book ofLists are available to purchase at www.crainscleveland.com.(1) The dollar amount reported for lease transactions represents both sales and lease transactions. The company estimates that sales transactions equal approximately 15-20%of the total.

RESEARCHED BY Deborah W. Hillyer



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

INDUSTRIAL SPACE

WILSON AUCTION & REALTY CO., LTD.Auctioneers/Brokers & Liquidators

Bryan, OH 866-870-5500 Bowling Green, OH 419-354-7653

★ SEALED BID LIQUIDATION ★

★ SEALED BID LIQUIDATION ★Top Quality Commercial Retail Shopping & Business Centers & Advertising Media Billboard

Also PUBLIC AUCTION of 22 Acres Development Land in Toledo, OHSealed Bids DUE April 20th @ 5:00 PM for the following:

For More Information, Terms & Bidding Procedures go to Our Websitewww.WilsonAuctionLtd.com

Or, contact any of the following for more detailed information,Due Diligence Packets & to Register for a Bidders Packet

CBRE/Reichle Klein 419-861-1100 ★ Signature Associates 419-249-7070

All Sales By Order of the Court Appointed Receiver The Skutch Company, Ltd.

Sealed Bids DUE April 27th @ 5:00pm for the following:

DeVeaux Village Shopping Center

2600 W. Sylvania Ave. at the corner of Douglas Rd., Toledo, OH43613. 71,900 SqFt Complex; Renovated in 2006; 9 Suites on 3.6Acres — Great cash flow!!

Timberstone Office Complex

1630 Timberwolf Dr., Holland OH 43528 (Just off Airport Hwy).8252 SqFt Top Quality beautifully appointed Office Complex, Multi-Tenant compatible, in an UP-SCALE Commercial Office Parkw/great location!

Chesterfield Plaza

1392 Conant or 120 Chesterfield Lane, Maumee, OH 43537.31,000 SqFt Complex; Renovated in 2005; 9 Suites on 3.8 Acres— Close to Interstate & Turnpike Exit!

1470 Ford St. off Dussel Dr.,Maumee, OH 43537

9154 SqFt Multi-Tenant Commercial Center on 1.36 Acre Lot

4 Parcels at one of the HIGHEST TRAFFIC AREAS in the area; corner of Sylvania & Talmadge

#1: Undeveloped Lot #3: 10,195 SqFt Multi-TenantShopping Center

#2: Electronic Media Billboard #4: 26,912 SqFt 2-Story OfficeBuilding

★ PUBLIC AUCTION ★Thurs., April 22nd @ Noon (12:00PM) 03750 Silica Rd., Sylvania, OH 43560 22+/- Acres of bare development land w/873+/-' of frontage; Zoned M-2. Very attractive property in a GREAT AREA!

Reichle Klein

4127- 41 Mayfield Road, South Euclid 8723 sq. ft. Commercial Building See website for details10% Buyer’s Premium

2% Broker Participation

Midwest Properties Auctioneers, LLC and R.G Nieto Co., Inc. Robert Nieto – Auctioneer, Broker

SEALED BID AUCTION

www.midwestprops.com 330-225-2822

Submission Deadline - April 21, 2010In the Court of Common Pleas, Mahoning County, Case #2009CV01179,we will offer for sale at Public Auction the following

413 Mathews Rd. Boardman, OH 44512FRIDAY APRIL 30, 2010 @ 12:30 PM

(54)TOWNHOUSE RENTAL UNITS IN (11)BUILDINGS

GO TO WEBSITE FOR DETAILS, PICTURES & TERMSPLEASE CALL FOR BIDDER PROSPECTUS

ROMAN REALTY, LTD. GEORGE ROMAN AUCTIONEERS, LTD.22 W. Main St. Canfield, OH 44406 330-533-4071 www.georgeromanauctioneers.com

STEVE PLATZ REALTY, INC.4021 Via CassiaPoland, OH 44514330-757-4889www.steveplatzrealty.com

COURT ORDERED REAL ESTATE AUCTION

CRESCO real estate

3 BUILDINGS - SALE/LEASE - 13,000, 32,000 & 59,800 sf - 1 story - docks - up to 27’clear - manufacturing/warehouse - Armand AghajanianI-480 / I-77 - 59,626 sf with 8 docks - 1 drive-in - 3,600 sf of office - 19’ ceilings - Bob Garber, SIORFOR SALE FREESTANDING 52,540 SF - manufacturing/warehouse building built in 1991- situated on 25.1 acres - located adjacent to Youngstown-Warren Regional Airport -George Pofok, SIOR or Joe Barna, SIORPRICE REDUCED - user/investor opportunity - 23,600 sf - 4 building complex available for sale- 1,500 to 10,200 sf - currently vacant - easy I-90 access - Moore Rd, Avon Lake - Kevin KellyIDEAL OPPORTUNITY - 20,000 sf on 3.16 acres for lease or sale - divisible to 10,000 sftenant could remain - 1985 construction - oversize DI’s - 8” floors - heavy power - rubberroof - secured yard - suburban location - Joe Barna, SIORAIRPORT AREA - units available from 2,464 sf to 11,737 sf - competitive rates -docks/drive-ins - 16’ clear - Pamela BertovichCUYAHOGA HEIGHTS - 10,797 sf freestanding building with 1,200 sf of office - 1 dockand 1 drive-in - Fred Christie, SIORI-90 / RT 611 (AVON) - interchange land - 1.19 acres of ready to build land adjacent toMcDonalds - across from Lake Erie Crushers Stadium - Ken Anderson

Available Office SpaceINVESTMENT SALE OPPORTUNITY - 22,500 sf property under lease - located across thestreet from the new Federal Building in downtown Canton - Patrick Reardon, SIORBEACHWOOD SUBLEASE - recently renovated offices - below market lease rate - 4,595 sf- large open floor plan - Chagrin Blvd building - John Glasstetter, SIOR4,500 SF 2 STORY COMMERCIAL BUILDING AT FLEET & I-77 - divisible with seperateentrances - perfect live/work layout - sale or lease - Tom West, SIORUNIQUE HEALTHCARE/SENIOR RESIDENCE OPPORTUNITY - highly visible I-271, 7acre site with opportunity to develop up to 184 units for senior assisted living / nursing /congregate living - value priced - Rico Pietro, SIOR or Bob Garber, SIORAvailable Industrial SpaceSOLON/TWINSBURG - multiple office-warehouse units from 3,000 to 108,000 sf - ready forimmediate occupancy with offices, docks, drive-ins - professionally managed and maintained -Matt Beesley, SIOR or Bob Garber, SIORSTREETSBORO - 67,030 sf whse/mfg crane building on 11.24 acres with 4 truck docks - 4drive-in doors - 2-5 ton OHD cranes - upgraded T-8 lighting and 30’-34’ clear ht. - SimonCaplan, SIOR or Eliot Kijewski

216.520.1200 • www.crescorealestate.comIndustrial and Office Spaces to Fit Any Need!

Crain’sCleveland Business

Online Property SearchPowered by LoopNet

#1 in Commercial Real Estate Online

Looking for property – Search Thousands of Local Listings

Selling or leasing a property – Get your property featured through Crains

For Advertising OpportunitiesContact Genny Donley

[email protected]

COMING SOON


She also did not truly know howimportant her husband and his storewere to the local music community.She learned when more than 80 peo-ple came to the store for a memorialjam session, followed by more than300 who filled a small church to capacity for his funeral service.

“My daughter said, ‘Why didn’tyou ever tell me I had such a cooldad?’” Mrs. Stiles said. “I said, ‘I neverknew’ — I mean, I knew he was prettycool, but ... this?”

Mr. Stiles was known for takingyoung guitar players and turningthem into both adults and valuable

workers. Current store employee ErikErdman, now 19, was taken in by Mr.Stiles two years ago, even though theyoung man only had been playingguitar for six months at the time andwas a long way from repairing guitarsor setting them to play perfectly fordemanding customers.

“I asked him if I had to tune everyguitar exactly,” Mr. Erdman said. “Hesaid, ‘Well you should get ’em as closeas you can.’ … I offered to work forfree, but he wouldn’t let me.”

Striking a chordA lot of people hope Mrs. Stiles

succeeds in keeping the store and

maybe even its spirit alive.“Oh man, that’d be nice,” said

Mike Zaite, also known as the“doctor” at Cleveland’s Dr. Z Ampli-fication, a nationally renownedmaker of tube amplifiers for guitars.

“I’d hate to see them all go away,”said Mr. Zaite, referring to indepen-dent guitar stores that were moreprevalent before superstores such asGuitar Center took over the market.

Dr. Z general manager Brent Ferguson — himself a former employee of Mr. Stiles — said HeightsGuitars was one of only two Cleve-land distributors of Dr. Z amps. Thecompany would like to have more,


REAL ESTATE

FINANCIAL SERVICES

OFFICESPACE

WANTED:Your subscription to Crain’s Cleveland Business

To sign up call toll-free at 1-888-909-9111or on-line @ CrainsCleveland.com Click on “Subscribe Now.”

ATTENTIONBUSINESS SERVICE OWNERS!Submit your business card to promote your service and

receive a SUBSTANTIAL DISCOUNT off your ad price.

To find out more, contact Don Schwaller at 216.771.5172

LLUUXXUURRYY PPRROOPPEERRTTIIEESS

Location, Location, Location

Vermilion Lagoons 5383 Park Drive - Vermilion

Enjoy this unique lifestyle. Imagine this rare view - Immediate possession.4 Bdrm., 2½ Bath w/ 65’ Dock on the scenic Vermilion River. Featuring mas-sive open liv. area, raised ceilings & skylights, wood burning FP, kitchenappl. included. Patio w/ gas grill, new vinyl siding, premium roof and se-curity system. Home warranty. Beach/Beach House privileges. Option-al Boat & Trailer Available. Zodiac Lift, & Sprinkler System.Open Sat. 1-4 & Sun. 1-5. SEE E-BAY FOR MORE DETAILS.

Priced at $795,000 - “Make Offer”

Call 440-331-8232 or 216-571-9900 for Details

APARTMENTS

REAL ESTATESERVICES

FOR LEASECleveland/Shaker Hts.

Historic AmTrust building, N. Moreland &Larchmere. 1,000 s.f. to 8,000 s.f.

from trendy & modern to well appointed& distinguished. Free parking • KitchenFacilities • Large Training Room/Class-

room Space • Conference Room.For additional information contact

Fairmount Properties216-514-8700

• Job Loss • Business Failure •• Medical Cost • Divorce •

Call us to discuss your options.

Short Sale & Foreclosure Certified

Transaction Realty216-432-0444

Need to sell your home?

2,100 Sq. Ft. PenthouseGreat View. 3 Bdrm/2 Bath

In-suite Washer/Dryer.Underground parking and much more!

Call today and select your own carpet & tile!

216-228-776117600 Detroit, Lakewood

www.RentCastlewood.com

AATTTTEENNTTIIOONNRREEAALLTTOORRSS::

Now is a great time to promoteyour Luxury Properties to

high-end prospectsAND

receive reduced rates onyour advertising.

Call Genny Donley at (216) 771-5172or e-mail [email protected]

for more details.

DON’TFORGET:

Crain’s Cleveland Businesson-line @

CrainsCleveland.com

For all the latest businessnews...online

CLASSIFIEDBUSNIESS SERVICES

CCrraaiinn’’ss EExxeeccuuttiivvee RReeccrruuiitteerr

To place your Executive Recruiter adCall Genny Donley at 216-771-5172

Sales Manager for Tourism and Eventsat the Maltz Museum of Jewish Heritage

Take your place in the Northeast Ohio community! Work for anorganization that promotes diversity and tolerance and explores theAmerican immigration experience.

The Maltz Museum of Jewish Heritage seeks a highly motivatedindividual who has a demonstrated track record of successful sales,preferably in the context of group tours and events. You will culti-vate and build strong relationships and offer account managementskills. You must possess excellent communication (oral and written)capabilities as well as organizational skills, computer proficiency andthe ability to be a team-player in this exciting position.

Sales experience required. Salary commensurate with experience.Please submit your resume and salary requirements to:

Attention: Museum Open Positionc/o The Malrite Company1660 W. 2nd Street, Suite 800Cleveland, OH [email protected]

Please note: Due to the anticipated volume of responses, theMuseum will not be able to respond to every resume as it is re-ceived. If your experience meets the Museum’s needs, you will becontacted.

Loans for new equipment leasing, medical sale-leaseback, cash advancedagainst equipment, receivables, purchase orders, contracts and more.

Call (330) 247-1319

Your Leading Providerfor Business Loans

We service: • Manufacturers • Business Owners• Physicians • Dentists • Hospitals and more!

LanderhavenYour Job

Is To Hobnob440.449.0700

ExecutiveCaterers.com

FLYNNENVIRONMENTAL

For Assessments(800) 690-9409

www.flynnenvironmental.com


Guitar: Widow hopes to keep shop alive professionals, and then built his namewith quality repairs and service. But hepredicts it might be tough to sell astore in today’s market.

“(Mrs. Stiles) might find that at leastat this time it might be wiser to keep itopen with a good, reliable staff until theeconomy improves,” Mr. Rubin said.

But Mrs. Stiles said she’s only justbegun efforts to sell the store. It wasclosed for two weeks while she and thestaff took an inventory that Mr. Stileshad committed to memory, and shewas quickly approached by formeremployees about a purchase. Shehopes that sale works, but if it doesn’t,she hopes the store’s reputation willhelp attract other potential buyers.

“Before I start advertising it, I wantto give these guys a chance,” shesaid. ■

but it does not sell through big-boxstores, only independent shops, and“there’s a lack of those kinds of guitarstores here,” Mr. Ferguson said.

Independent guitar specialty shopsprobably have been more affected bythe big-box stores than general musicstores such as Prospect Music inCleveland, said Prospect owner MikeRubin. The big retailers have gone after the more popular market for gui-tars, but not attacked the market fortrumpets, saxophones and other lesspopular instruments, Mr. Rubin said.

An encore performanceMr. Rubin said he knew Mr. Stiles

only a little, but was well aware of hisgood reputation. He said Mr. Stilesfound a good location for his store,near many doctors, lawyers and other


Mr. Clark said the loss of theheadquarters has not made a differ-ence in executives’ ability to makedecisions locally, which has “neverbeen greater.”

Terry McEvoy, managing directorand bank analyst at investment firmOppenheimer & Co. in Portland,Maine, said he has heard anecdotallythat some customers have left thebank because business lending hasbeen more focused in Pittsburgh. Hesaid he did not know if most switchedimmediately after the merger or morerecently.

Mr. Clark said local executivesmake both credit decisions for customers as well as charitable decisions. Philanthropic gifts don’thave to go through the bank’s Pitts-burgh headquarters, he said.

Mr. Clark also said the bank hastaken this opportunity to rethink existing relationships with philan-thropic organizations, offering timeand creating educational programs,for example, instead of simply writingchecks.

Immediately after a merger, Mr.McEvoy said, banks do a lot of work toshow that their role in the communityhas not been diminished. He said,though, that those commitments often shrink over the years.

“Over time, things change,” hesaid. “For now, it would appearthey’re very committed.”

Cultural shiftWith the structural changes in

Cleveland, executives have created a

president’s forum where leaders ineach line of business talk jointlyabout broad opportunities in themarketplace. A new client and com-munity relations director in eachmarket is the point person for all phil-anthropic and charitable work in thatmarket.

Holly Buffington, executive vicepresident of PNC wealth manage-ment for the western region — essen-tially, all of National City’s old foot-print — is a legacy PNC executive. Shesaid the changes have allowed thebank to become more interconnectedacross its business lines.

PNC has made changes to the wayit does business across National City’sfootprint as well. It has increased thebank’s focus on selling a broad arrayof products to customers, a move Mr.Clark said has been well-received.PNC also offered an array of productsthat National City did not, includingderivatives, public finance capabili-ties and Delaware trust capabilitieson the wealth management side.

Employees now are focused morethan ever on selling those products,said Mr. Clark, who also has increasedthe time he spends on the phones.

“It’s a cultural thing, that’s forsure,” he said. “Everybody sells. Myperformance starts with how muchproduct is sold in the market. It’s thebiggest dial on the dashboard.”

Barry Robinson, executive vicepresident of PNC wealth manage-ment in the Cleveland office, saidwhile National City had areas whereit successfully cross-sold customers,the practice has taken on greater ur-


Doing our partto keep ourGreat Lake great.The Northeast Ohio Regional Sewer District is proud to protect public health and our environment.

Learn more at wheredoesitgo.org


PNC: Bank forms local relationshipsgency with the bank’s new owner.

“If there’s a valuable service thatPNC has, they’re going to hear aboutit,” he said of the customers.

Mr. McEvoy, of Oppenheimer, saidPNC wants to be a “smarter bank”than National City was, workingharder to develop a complete relation-ship with clients.

“They want to get a greater share oftheir customers’ wallets,” he said.

The best of both worldsNot all the bank’s calls are to sell,

though. Customer satisfaction is mea-sured more than in the past, with eachbank branch rated on a star system.Customers receive phone calls askingabout their experience at branches.

All of that isn’t to say that NationalCity doesn’t have anything to offer toPNC. The Cleveland bank’s mortgagecompany was adopted by its newowner, as was the points program thatrewards National City customers for using the bank’s services. PNC branches are converting to some National City software once all National City branches have switchedto the PNC name. The trust side, forexample, was stronger under NationalCity, Ms. Buffington said, and PNC willtransition to its model. National Cityalso had client satisfaction and contactstandards “down to a science,” shesaid, something Mr. Robinson said thebank believed in “passionately.”

Ms. Buffington said PNC cameinto the acquisition knowing thatboth institutions would make somechanges. Like Mr. Clark, she said thefocus should be just as much aboutwhat hasn’t changed as what has.

“We went into the organizationwith the idea that not one organiza-tion was better than another,” shesaid. “We would take the best of bothand try to blend them.” ■

Rocky River tech firm’s web software gets resultsBy CHUCK [email protected]

After meeting with some peoplefrom Rocky River-based Idea Engine,Steven Lindseth was ecstatic. And really mad.

The former CEO of Axentis Inc. waselated to find a better way to attractcustomers to the Cleveland softwarefirm’s web site and to have a tool —Idea Engine’s SyncShow software —that could help him do it.

But seeing how much time andmoney Axentis had wasted to main-tain an underperforming site left himfurious.

“I was practically enraged,” Mr.Lindseth said. “I was like, ‘How couldwe have not done this before?’”

And he had an earlier version ofIdea Engine’s SyncShow, a productthat’s driving growth at the smalldigital marketing firm and elicitingbig responses from customers, saidmanaging director Chris Peer.

“That’s the kind of reaction we’regetting when we sell SyncShow topeople,” Mr. Peer said.

The newest version, SyncShow6.0, summarizes all sorts of infor-mation from web analytics softwareprograms to give web site managersupdates on who is visiting their site,for how long and what they’re clickingon. It’s a lot simpler than having aclient wade through the reportsthemselves, Mr. Peer said.

“Try dragging a customer througha 120-page report in an hour. It’s a little overwhelming,” he said.

Plus, if a site is performing poorlyin a given area, the update is accom-panied by action items suggestingwhat should be done to fix the

problem. It might involve putting keywords in particular spots to attractcustomers from Google or alteringthe site’s resolution so that, say, Macintosh users who aren’t stayingon the site very long can see it better.SyncShow also uses statistics to pinpoint visitors likely to become customers, which can help a companyfind sales leads.

The company created SyncShowto do what they often taught clientsto do themselves, said chief tech-nology officer Dan Carbone. Heplopped a thick search engine optimization book called the “SEOBible” on the table in front of him.

“You’d have to read a lot of thesebooks (to do what SyncShowdoes),” Mr. Carbone said.

As a result of SyncShow’s popu-larity, Idea Engine has hired threepeople to bring its staff to 11, and itis looking to hire two more. Thecompany does not release revenuefigures, but sales exceeded $1 million and grew 36% in 2009.

Software companies and manu-facturers have been quick to adoptthe technology, Mr. Peer said. LHP Software of Columbus, Ind., hasseen big improvements since itstarted using an earlier version ofSyncShow a few months ago, saidDavid Glass, president of LHP,which develops software for cars,medical equipment and power gen-eration technologies. SyncShowwas “a key element” in a recentmarketing effort that has put thecompany back into hiring mode after it lost much of its business fromits biggest customer, Mr. Glass said.

“It’s just way beyond where wewere before,” he said. ■


The Times said.Among the efforts shown to help are anti-

bullying programs, positive-behavior feed-back and training of students and teachersin conflict resolution.

“With similar strategies, including peermediation, violent incidents in Clevelandschools fell by one-fifth in each of the lasttwo years,” The Times reported.

Hubs up in the air, butContinental likes Cleveland■ In a Q&A with USA Today, a Continental

Airlines executive talked up the importanceof the airline’s hub in Cleveland.

Jim Compton, Continental’sexecutive vice president and

chief marketing officer, was asked ifhe sees Cleveland remaining as aContinental hub indefinitely, espe-

cially given the “de-hubbing” of Pittsburgh,St. Louis and now, possibly, Cincinnati.

Mr. Compton responded, “It is an impor-tant part of our network. It serves our demandin the Midwest. We’ve been very disciplinedabout matching capacity with demand, because we think it’s really important withbeing successful in this business.”

Timing is everything■ When does a bank know the end is near?It depends upon whom you ask.

Dick Wise, the former president and CEOof American National Bank in Parma, said

he was running the bankfrom his retirement homein Florida when he foundout it was over. He saidhe first got a call fromthe bank’s chief finan-cial officer at 1:30 p.m.

on Friday, March 19, and learnedthat a regulator was there from Washington,D.C.

At 3:30 p.m. the same day, CEO Larry Cardinal called again to say the Federal Deposit Insurance Corp. was there and wastaking over the bank, Mr. Wise said.

Mr. Cardinal told Crain’s he didn’t knowif he was authorized to talk about thetakeover, and therefore declined to be inter-viewed. But Dean DeBuck, a spokesman forAmerican National’s regulator, the Office ofthe Comptroller of the Currency, said banksare informed ahead of the scheduled closure.

“We set a date and let the bank know andall that,” Mr. DeBuck said. “The bank knowsa week ahead of time.”

That’s because the FDIC holds a meetingfor all interested bidders ahead of anybank’s closure, Mr. DeBuck said. In the caseof American National Bank, there was justone bidder, an FDIC spokesman said.

Mr. Wise, who was the bank’s CEO andpresident from 1988 to 2003 and remained

on the board until 2007, said he intends togo back to the bank to see how the employeesare doing, but that he has no intention ofgetting another job.

“It’s not a good feeling when that happens,”he said, referring to the bank closure, “butI’m going to get on with life. I’m going toplay a lot of golf. I have no desire to go intothe active business world.” — Arielle Kass

This bit of business is hardly a drag■ Database marketing company Hedges &Co. in Hudson has carved a nice niche in theautomotive world, based on its principals’years of experience in the field. But that littleniche recently got a lot bigger, as the company announced a deal with the NationalHot Rod Association (NHRA), the nationalsanctioning body for the sport of drag racing.

Hedges & Co. has culled consumer buying history and association membershiphistory, among other things, to provideNHRA a database with its best prospects,said Jon Hedges, the company’s founder.

“This is not something a lot of companieshave the ability to do in-house, at least notat this level,” said Mr. Hedges, whose wife,Julie, manages the company’s market research practice.

Mr. Hedges worked in marketing, adver-tising and merchandising at Summit RacingEquipment in Tallmadge for 13 years beforestarting Hedges & Co. in 2004. The companyalso counts Norwalk’s Summit MotorsportsPark and the Specialty Equipment MarketAssociation (SEMA) in California as clients.

Hedges & Co. administers SEMA’s monthlybenchmarking study, which provides analyticsto the association’s 7,000-plus members.

Mr. Hedges said the economy has forcedmany companies, including in the automo-tive industry, to search for ways to reachtheir target audiences.

“It’s been a challenge to a lot of people,”he said. “Any company is looking for moreefficient ways to market their products orservices. We have gotten a lot of interest inour abilities because of the economic climate; we offer a solution that has (returnon investment).” — Joel Hammond

A clear case ofbrand awareness■ This reporter committed a cardinal sinwhen interviewing a former National City —and now PNC — executive earlier thismonth: I took notes with a pen branded withthe red KeyBank logo, after failing to findanother working writing implement in thebottom of my purse.

Paul Clark, PNC regional president,Northern Ohio, spotted the offending quillafter mere minutes and stopped the inter-view to jokingly chide me on my choice ofnote-taking devices. He then insisted I putthe pen away and take his own, a logo-less,blue uniball micro. At the end of the inter-view, he told me to keep it rather than riskcommitting a similar offense in the future.

Mr. Clark also pledged a case of PNC-branded pens following the bank’sconversion mid-April to ensure the mistakewouldn’t be repeated. — Arielle Kass

MILESTONECOMPANY: Millennium Capital andRecovery Corp., HudsonTHE OCCASION: Its 10th anniversary

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK MARCH 22 - 28

The big story: The Ohio Third Frontier Com-mission awarded $4.3 million in grants to fiveNortheast Ohio technology companies, whilealso releasing updated statistics on the perfor-mance of the Ohio Third Frontier Program. Theprogram, created in 2002, had created 55,000jobs as of Dec. 31, 2009, according to commissionstatistics based on a formula that previouslyshowed the program had created 41,000 jobs asof December 2008. Of the five local companiesthat received grants, four are developing tech-nologies related to advanced materials, and thefifth is developing sensor technology. The localcompanies receiving grants are AlphaMirrorInc.; Kent Displays Inc.; Lockheed Martin MS2Integrated Defense Technologies; MomentivePerformance Materials Inc. of Strongsville andPressco Technology Inc. of Solon.

Hungry for more: J.M. Smucker Co. outlineda capital investment initiative that will result innew production capacity, though the changeswill come at a cost of 40% of the 450 jobs at theplant in its headquarters city of Orrville. Themaker of Smucker’s jellies, Jif peanut butter andFolgers coffee said the investment in its opera-tions will total $220 million over the next threeyears. In addition, the company plans to closefour plants and will incur restructuring chargesof $190 million over the course of the initiative.Smucker said it will replace its existing plant in Orrville with a new plant that should begin production in the summer of 2012.

Life in the fast lane: More than 100 homeson Hessler Street in Cleveland and several localinstitutions soon will get super-fast Internet access. Case Western Reserve University is leading a year-long experiment that will allowthe university, several area hospitals and Hesslerresidents to access the Internet at speeds of 1 gigabit per second — about 100 times faster thanstandard cable and phone line connections. Theuniversity will track how the participants end upusing the service. It also is encouraging partici-pating institutions — including the ClevelandClinic, University Hospitals Health System andMetroHealth System — to come up with ways toexploit the technology.

Shipped out: The surge in manufacturingwork over the last decade in China cost NortheastOhio 19,300 jobs from 2001 to 2008, according to astudy by a union-sponsored think tank. The Economic Policy Institute report, “Unfair ChinaTrade Costs Local Jobs,” says manipulation ofChina’s currency that has kept the yuan’s valueartificially low cost the four congressional districts of Northeast Ohio 1.73% of their totalemployment from 2001 to 2008.

On the money: Brennan Financial Group and212 Capital Group have combined. Together,the firms have eight offices in as many NortheastOhio cities. Brennan brings 21 advisers and seven other employees to the merged firm,which will be called 212 Capital Group, while 34advisers and 10 other employees come from 212.


Learn more about the Weatherhead School of Management’s Part-Time MBA program, ranked #14 nationally by BusinessWeek, by visiting weatherhead.case.edu.

OUR LETTERS CARRY THE STRENGTH OF NUMBERS

weatherhead part-time

Excerpts from blog entries on CrainsCleveland.com.

BEST OF THE BLOGS

The company, which helps financial institutionswith collateral recovery and debt resolution,was formed in late-1999 by business leaders

with expertise in financeand consumer lending.

It currently offers services including national,regional or local collateralrecovery and debt resolu-tion through a single pointof contact; skip tracing,impound negotiation andtransportation; and remar-

keting coordination through auction affiliatesnationwide.

Robert Bronchetti, president and CEO ofMillennium, said the company has grown overthe years because of a philosophy based on“integrity, performance and accountability,”coupled with expanded service options.

For information, visit www.mcrc.biz.

Send information about corporate anniversariesto managing editor Scott Suttell at [email protected].

Bully for schools fortrying something new■ We so rarely get to see good news aboutthe Cleveland schools that a recent piece inThe New York Times was a pleasant surprise.

The Times looked at schools’ get-tough,“zero-tolerance” discipline policies, whichresult in an increase in suspensions.

“But whether banishing children fromschools really makes them safer or servesthe community well is increasingly ques-tioned by social scientists andeducators,” the newspaper reported. “A growing body ofresearch, scholars say, suggeststhat heavy use of suspensions doesless to pacify schools than to push already troubled students toward academic failure and dropping out.”

As a result, more districts, includingCleveland’s, “are already reversing courseand trying new approaches, including behavioral counseling and mediation, to reduce conflict and create safer, quieter schoolswhile ejecting only the worst offenders,”

Bronchetti


Pay your balance in full within 10 days of the statement closing date and get a 1.5% discount on virtually all purchases made that month. The discount will appear as a credit on the following billing statement. Pay 10% of the balance from new activity on your billing statement plus the entire amount of any previously deferred payment or amounts past due by the “Please Pay By Date” on that statement and you can extend payment on the rest until the closing date of your next billing cycle without penalty. Visit plumcard.com for details. ©2010 American Express Bank, FSB. All rights reserved. P04

Pay early or defer payment – either way, it’s money in the bank.

Is the Plum Card right for you?Visit plumforbusiness.com to see how other businesses use the Plum Card to

their advantage. Or call 1-866-973-PLUM. Then decide for yourself.

“The Plum Card seemed like a natural way to save some money. I saved

thousands of dollars over the course of a year, and it was a no-brainer.”

- Thomas Tranguch, T&F Tire Supply Inc., Member Since 2008

The Plum Card® from American Express OPEN offers flexible payment terms.

If your established business pays your bill early, you get a 1.5% discount that

can add up to thousands of dollars that go right back to the bottom line. Or

your business can defer payment if cash flow is ever less than steady.

This kind of flexibility gives you the option to choose, each month, which way

to pay. And puts more cash back in your hands.


crain's cleveland business

Documents

devices page

landmark huntington

largest office building

bill page

land lease

building at916 euclid

clevelandmedical devices

new owner