CCLB 09-29-08 A 18 CCLB 18 9/25/2008 2:59 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 Summer good to hot Steris stock But company execs, citing a number of factors, expect firm’s momentum to continue By CHUCK SODER [email protected] has been acquired by The undersigned acted as financial advisor to Gallo Displays, Inc. in this transaction. For more information, please call (216) 589-0900 or visit www.wesrespartners.com. Steris Corp. had a great summer, but the end of the season doesn’t necessarily mean the end of the sunshine. The Mentor-based maker of sterilization products saw its stock close on Sept. 9 at $38.21 — a new all-time high when prices before a 2-for-1 stock split in 1998 are excluded — after climbing more than $11 a share in five months. Even after the battering to most stocks that followed the recent turmoil on Wall Street, Steris still traded at around $37 a share last week. Part of the increase followed the company’s Aug. 8 announcement that its first-quarter profits exceeded expectations. However, Steris officials and a few analysts said they expect the company’s recent good fortune to endure, thanks to internal restructuring and trends that favor COMMISSIONERS Jimmy Dimora Timothy P. Hagan Peter Lawson Jones Smart Start 2008 A Public/Private Summer Youth Employment Project Cuyahoga Board of County Commissioners—Youth Development Initiative Operated by Youth Opportunities Unlimited Thank you One busy CEO Thank you to over 120 employer organizations who made it possible for over 870 youth ages 14-18, who live throughout Cuyahoga County to have a summer job through SmartStart 2008. The youth developed employability skills, learned many new technical skills, and had countless social interactions: valuable experiences that will help them succeed in the workplace. Their earnings, over $1,000,000, will help their families buy clothes, defray expenses, and go towards the things that help them grow. The money is reinvested back into our county’s economy, and the work undertaken by so many of these employer organizations is helping thousands of other county residents. Thank you, employers, for helping the youth who need you today… they will be the workforce that helps you tomorrow. Above and Beyond Childcare BROMA Information Technology Building Blocks Academy Building Bridges Mural Program CAP - Culinary Arts Program CCSC Fatima Center City of Bedford Heights City of Cleveland Heights City of Cleveland Div. of Recreation Clark Recreation Center Corey Recreation Center Cudell Recreation Center E J Kovacic Recreation Center Earle B. Turner Recreation Center Fairfax Recreation Center Glenville Recreation Center Gunning Recreation Center Halloran Park Recreation Center John F. Kennedy Recreation Center Kenneth Johnson Recreation Center Lonnie Burton Recreation Center Stella Walsh Recreation Center Thurgood Marshall Recreation Center Zelma George Recreation Center Forest Hills Pool Gassaway Pool Glendale Pool Glenview Pool Grovewood Pool Ken Johnson Pool Kerruish Pool Lonnie Burton Pool Luke Easter Pool Meyer Pool Neff Pool Sunrise Pool Warsaw Pool City of Cleve. Hopkins International Airport City of Euclid Recreation Dept. City of Garfield Heights City of Middleburg Heights Recreation Center City of Parma City of Warrensville Heights Clark-Metro Development Corporation Cleveland Clinic Cleveland Department of Public Health Cleveland Municipal School District Charles Elliot K-8 School Collinwood High School East Tech High School Franklin D. Roosevelt Pre K-8 School Glenville High School Harvey Rice School John Adams High School John F. Kennedy High School John Hay High School Max Hayes High School South High School Concordia Care Council for Economic Opportunities (CEOCG) Cuyahoga County Office of the Public Defender CVS East Cleveland Board of Education Chambers Elementary School Heritage Middle School Mayfair Elementary School Prospect Elementary School Shaw High School Superior Elementary School East Cleveland Childhood Development East Cleveland Municipal Court East Cleveland Police Department East Cleveland Service Department East Cleveland Water Department EB Katz Enlight Euclid Child Development Center Euclid City School District Central Middle School Forest Park Middle School Glenbrook Elementary School health care companies. The internal changes include new executives — CEO Walter Rosebrough Jr. among them — as well as two cost-reduction efforts, a new sales strategy and several new products. Steris officials wouldn’t say what they thought was the biggest reason for the boost in the company’s profits and stock price, but Dan Owczarski, senior analyst for medical devices at investment banking firm Avondale Partners LLC of Nashville, said the new leadership likely is it. The previous CEO, Les Vinney, had been in the role for seven years, a period when the company’s stock price rarely exceeded $30. Mr. Rosebrough, who replaced Mr. Vinney last October, had spent more than 20 years as a senior executive in the health care industry, including a stint as CEO of Hill-Rom Co., a subsidiary of medical technology and health care services company Hillenbrand Industries Inc. of Batesville, Ind. “It seemed like (Steris) was stagnant and needed a breath of fresh air,” Mr. Owczarski said. Euclid City Schools Div. of Groundskeeping Indian Hills Elementary School Lincoln Elementary School Memorial Park Elementary School Roosevelt Elementary School Thomas Jefferson Magnet School Upson Elementary School Freedom Ministry Enhancement Garfield Heights Community Center Good Shepherd Baptist Church Helen S. Brown Center Hillcrest Family YMCA Huntington National Bank Huron Road Hospital Jamocha Arts Center JUMP Academy JumpStart Inc. Kathryn R. Tyler Center Laborers Local 860 LaParade Child Care Center MAGNET Martin Luther King Civic Center Merrick House Ministry of Reconciliation Murtis H. Taylor Peace In the Hood Program Neighborhood Leadership Institute Nottingham Youth Center Restoration Homecare Agency State Farm Insurance The Boys and Girls Club of Cleveland Tom Paige Catering Company Total Beauty Care Tri-City Non Partisan Independent Political Org. United Way of Greater Cleveland US Bank Valley Ford Truck West Park Fairview YMCA Youth Devoted to Christ Ministry Youth Opportunities Unlimited Zaremba Mr. Rosebrough declined to be interviewed, said Stephen Norton, director of corporate communications at Steris, which makes sterilization machines used in hospitals and other industries, disinfectant lotion and other hospital equipment. Though Mr. Norton would not say what the largest factor in the company’s growth was, he noted that Mr. Rosebrough “is actively engaged in every level” of the company. Mr. Rosebrough and other new executives also played a significant role in enacting Steris’ most recent cost-cutting plan, according to a March interview with the company’s former communications director, Aidan Gormley. The $30 million cost-cutting plan was a big factor in helping improve profits at Steris and will continue to pay off through fiscal 2009, which began April 1, Mr. Norton said. The plan is producing savings through an undisclosed number of administrative staff cuts, most of which are taking place at the company’s Mentor headquarters, as well as through overhead cost cutting and the renegotiation of vendor contracts, Mr. Norton said. About 850 employees work in Mentor now. Steris also is starting to see savings from its decision to move its Erie, Pa., manufacturing operation to Monterrey, Mexico, Mr. Norton said. That decision, announced January 2006, was made during Mr. Vinney’s tenure as CEO. Production slowdowns followed the move, but the Mexican plant since has reached the production level of the Erie plant, Mr. Norton said. He also cited as a contributing factor the company’s decision to set quarter-to-quarter goals for its sales force instead of annual targets to produce more “consistent execution from quarter to quarter.” In addition, Steris since June 2007 has released five new products that have gained positive attention, Mr. Norton said. “It’s a combination of all of those factors,” he said. ‘Why not Steris?’ Profits at Steris in the fiscal first quarter that ended June 30 nearly doubled, to $25.5 million from $13.2 million in the year-ago period. Pershare profits rose more, increasing to 43 cents from 20 cents, because of fewer shares outstanding this year. Mr. Owczarski said Avondale Partners rates the stock a “market outperform” not just because of those numbers, but also because its position in the health care market makes it resistant to current economic troubles and puts it in position to serve the world’s aging population. “This week I’ve been saying, ‘Why not Steris?’” Mr. Owczarski said Sept. 17. Matrix U.S.A. of New York rates Steris a “hold” but could upgrade it to a “buy” if the company builds on recent momentum, said managing director Daniello Natoli. Steris’ past performance has held it back on Matrix’s ratings system, which compares companies to the Russell 3000 Index and others in the same sector. The recent increase in sales and profits, however, bodes well for a company that already is in a growing market, Mr. Natoli said. “Steris is well positioned to capitalize on that trend,” he said. Still, the company faces challenges and has yet to show it can sustain its performance, said Elliott Schlang, managing director of institutional research boutique Great Lakes Review of Shaker Heights. Steris shows promise, but it like other companies faces rising prices for raw materials, and there’s no guarantee the boom in hospital construction will continue, Mr. Schlang said. His firm rated the company a “hold.” “We’re looking for a good September quarter,” he said. So is Mr. Norton. “It’s just one quarter,” he said. “It’s a good start.” ■ CCLB 09-29-08 A 19 CCLB 9/24/2008 4:24 PM Page 1 SEPTEMBER 29-OCTOBER 5, 2008 GREAT LAKES PAIN MANAGEMENT: Dr. Sherif Salama to medical staff. GOING PLACES Kristen Schrader to staff accountants; Jeremy Herbert to staff accountant. JOB CHANGES ARCHITECTURE THE AUSTIN CO.: John Cardilino, Steve Tressler and Larry Williams to mechanical designers; Mike Furlong to CADD supervisor; Lee Hribar to senior project architect; Mang Lian and Roman Perkis to electrical engineers; Gretchen Schwab to CADD operator; Audrey Shuster and Frank Trunzo to structural engineers; Sam Talameh to mechanical engineer. CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM PEASE & ASSOCIATES INC.: James Kara to staff accountant. UNIVERSITY HOSPITAL CASE MEDICAL CENTER: Dr. Cliff Megerian to the Richard W. and Patricia R. Pogue Chair in Auditory Surgery and Hearing Sciences. HOSPITALITY HEALTH CARE COMFORT KEEPERS: Diana L. Chike to client care coordinator. INTERCONTINENTAL HOTELS CLEVELAND: Bertrand Mangeot to director of front office. COMMUNITY HEALTH PARTNERS: Dr. James Anthony to medical director and medical review officer, Occupational Health Center. SHERATON INDEPENDENCE HOTEL: Jill Vance to director of sales; Linda Des Forges to senior sales manager; Beckee Jackson to corporate catering manager; Susan Fauskey to sales manager; Jamie Housley to social catering manager; John Guercio to sales coordinator. INSURANCE AON RISK SERVICES NORTHEAST INC.: Kevin Garvey to associate account executive; Michelle Mendes to originator, Aon Private Risk Management Insurance. LEGAL BRICKER & ECKLER: Richard H. Blake to partner. FRANTZ WARD LLP: Timothy J. Pillari to associate. TUCKER ELLIS & WEST LLP: Edward A. Gecovich to associate. MANUFACTURING EATON CORP.: Gary Klasen to vice president, external communications. FERRO CORP.: Mark H. Duesenberg to vice president, general counsel and secretary. Send information for Going Places to [email protected] or kratliff-null@ crain.com. BURT HILL: Thomas Veider to project manager. VOCON INC.: Jakecia Brown, Kristi Gerard and Blair Kodman to project designers. DISTRIBUTION THE CHAS. E. PHIPPS CO.: Kevin Kasner to vice president of sales; Tony Filipovic to vice president of administration. Salama Megerian Garvey Mendes Blake Klasen Wherever your business leads, our health insurance follows. EDUCATION JOHN CARROLL UNIVERSITY: Jonathan Smith to vice president and executive assistant to the president; Richard Mausser to vice president for finance and treasurer. KENT STATE UNIVERSITY: Deborah C. Huntsman to executive director, Office of Continuing and Distance Education. ST. IGNATIUS HIGH SCHOOL: David Figueroa to alumni director. ENGINEERING BBC&M ENGINEERING INC.: Eric A. Angyal to Northeast Ohio regional manager. FINANCE FEDERAL RESERVE BANK OF CLEVELAND: Kelly A. Banks to vice president, community relations; Susan M. Kenney to vice president, egovernment treasury services; Henry P. Trolio to vice president, information technology services; George E. Guentner to assistant vice president. FINANCIAL SERVICE ALLEGIANT ASSET MANAGEMENT CO.: Calvin Zhang to senior investment analyst/portfolio manager. BROWN GIBBONS LANG & CO.: Jacob S. Vogel and William L. Rottschaefer to associates; Conor J. Mitchell and Tanay Parekh to analysts. BROCKMAN, COATS, GEDELIAN & CO.: Raymond Dunkle, Thomas Hastings, Raymond Lampner and Don Snyder to directors. CIUNI & PANICHI: Dan Reilly and Across Ohio or the nation, SummaCare has you covered. Our expanded network includes hundreds of top hospitals and thousands of providers. And, with unexpectedly personal customer service, consider SummaCare this enrollment season. To learn more, call your agent or visit www.summacare.com. 19 CCLB 09-29-08 A 20 CCLB 20 9/24/2008 4:24 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM Amount: $6,926 TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office. LIENS FILED Balance Builders Inc. 4710 Fenwick Ave., Cleveland ID: 20-3799689 Date filed: July 28, 2008 Type: Employer’s withholding, unemployment Amount: $11,553 Brooklyn Chiropractic Inc. 5592 Broadview Road, Suite 107, Parma ID: 27-0044620 Date filed: July 21, 2008 Type: Employer’s withholding Amount: $10,385 Costello Automotive Inc. 11015 Briggs Road, Cleveland ID: 34-1863104 Date filed: July 21, 2008 Type: Employer’s withholding Amount: $10,295 Big Kahunas Inc. 6959 Carol Drive, Independence ID: 01-0768792 Date filed: July 28, 2008 Type: Employer’s withholding, unemployment Amount: $9,588 Plus Mark Inc. 1 American Road, Cleveland ID: 34-1234452 Date filed: July 14, 2008 Type: NA Amount: $8,500 Anthony Roccos Hair Design 6124 Highland Road, Highland Heights ID: 04-3726680 Date filed: July 8, 2008 Type: Employer’s withholding, unemployment Amount: $8,399 14012 St. Clair Inc. 14012 Saint Clair Ave., Cleveland ID: 04-3704902 Date filed: July 14, 2008 Type: Corporate income Amount: $8,167 Hicks Tavern Inc. 11919 Miles Ave., Cleveland ID: 34-1345586 Date filed: July 2, 2008 Type: Employer’s withholding Rossi & Sons Inc. 4317 W. 130th St., Cleveland ID: 14-1944872 Date filed: July 8, 2008 Type: Employer’s withholding Amount: $6,796 Patrician Inc. 9101 W. 130th St., North Royalton ID: 34-1291383 Date filed: July 21, 2008 Type: Employer’s withholding, unemployment Amount: $6,136 Rossi & Sons Inc. 4317 W. 130th St., Cleveland ID: 14-1944872 Date filed: July 8, 2008 Type: Employer’s withholding Amount: $6,111 Auto Clinic Car Care LLC 3275 W. 117th St., Cleveland ID: 51-0630022 Date filed: July 14, 2008 Type: Employer’s withholding Amount: $6,057 Ban Steel Co. 17625 Saint Clair Ave., Cleveland ID: 34-1950023 Date filed: July 2, 2008 Type: Employer’s withholding Amount: $5,758 LIENS RELEASED AKM Childcare Centers Inc. SEPTEMBER 29-OCTOBER 5, 2008 4020 Verona Road, South Euclid ID: 11-3732794 Date filed: March 5, 2008 Date released: July 28, 2008 Type: Employer’s withholding Amount: $14,870 BKDW Inc. 815 Crocker Road, Westlake ID: 20-2268302 Date filed: April 21, 2008 Date released: July 8, 2008 Type: Employer’s withholding Amount: $5,701 Capital Planners Inc. 25101 Chagrin Blvd., Suite 100, Beachwood ID: 34-1521358 Date filed: Dec. 27, 2006 Date released: July 8, 2008 Type: Unemployment, failure to file complete return Amount: $24,751 Carl P. Norman Co. D.D.S. P.O. Box 200429 ID: 34-1311430 Date filed: Nov. 5, 2007 Date released: July 8, 2008 Type: Employer’s withholding Amount: $9,970 CMS Properties Inc. 25801 Lake Shore Blvd., Apt. 30, Euclid ID: 34-1744306 Date filed: Sept. 14, 2007 Date released: July 8, 2008 Type: Corporate income Amount: $10,826 Comfort Wear Inc. 2261 Warrensville Center Road, University Heights ID: 31-1502585 Date filed: March 3, 2008 Date released: July 21, 2008 Type: Employer’s withholding Amount: $18,461 I T ’S J U S T A C H A I R . Until it’s behind the rail, in a crowded courtroom and all eyes are on you. It’s no secret that trials can be daunting. But that’s where we come in. With more than 100 years of litigation experience, we work with you to craft strategies that help you stay one step ahead of your opponents, control discovery costs (especially e-discover y) and stay focused Donnert Enterprises Inc. 401 Broadway Ave., Bedford ID: 34-1653897 Date filed: April, 7, 2008 Date released: July 14, 2008 Type: Employer’s withholding Amount: $6,116 Healthrapid Inc. TA Urgent Care 6739 Ridge Road, Parma ID: 20-4135845 Date filed: Jan. 16, 2008 Date released: July 14, 2008 Type: Employer’s withholding Amount: $5,949 Highbanks Care Center LLC DBA Highbanks Care Center 22021 Brookpark Road, Fairview Park ID: 51-0466223 Date filed: Feb. 8, 2008 Date released: July 28, 2008 Type: Unemployment Amount: $6,935 Jacobsen Home Furnishings Co. 2950 Whipple Ave. N.W., Canton ID: 34-0476952N Date filed: March 19, 2002 Date released: July 2, 2008 Type: Return of excise taxes Amount: $259,591 James H. Houston D.D.S. Inc. T/A Severance Smile Center 601 Rockwell Building, Cleveland ID: 34-1488966 Date filed: Aug. 5, 1998 Date released: July 2, 2008 Type: Employer’s withholding Amount: $5,718 LaMarcas Master Pizza Ltd. 6643 Mayfield Road, Mayfield Heights ID: 34-1929009 Date filed: Feb. 18, 2005 Date released: July 8, 2008 Type: Employer’s withholding, unemployment Amount: $119,201 Larsen Architects Inc. 12506 Edgewater Drive, Lakewood ID: 34-1577650 Date filed: March 17, 2008 Date released: July 28, 2008 Type: Employer’s withholding Amount: $45,512 Leighton Industries Inc. 33595 Bainbridge Road, Suite 205, Solon ID: 11-3656104 Date filed: May 14, 2007 Date released: July 2, 2008 Type: Employer’s withholding Amount: $65,373 Leighton Industries Inc. 33595 Bainbridge Road, Suite 205, Solon ID: 11-3656104 Date filed: May 14, 2007 Date released: July 2, 2008 Type: Employer’s withholding, unemployment Amount: $23,394 Little Feet Ltd. 8161 Broadview Road, Broadview Heights ID: 34-1792856 Date filed: March 12, 2007 Date released: July 21, 2008 Type: Employer’s withholding, corporate income Amount: $55,678 on your goals. Calfee – move forward with confidence. Retail Space (or 300 employee office) Calfee, Halter & Gr isw old llp Clevel and - 216.622.820 0 w w w . c a l f e e . c o m C o l u m b u s - 61 4 . 6 21 .15 0 0 1400 KeyBank Center, 800 Superior Avenue, Cleveland, Ohio 44114 • 1100 Fifth Third Center, 21 East State Street, Columbus, Ohio 43215 60,000 & 6,000 sq. ft. available. High Traffic & high income area. 216.214.3806 CCLB 09-29-08 A 21 CCLB 9/24/2008 4:25 PM Page 1 CRAIN’S CLEVELAND BUSINESS SEPTEMBER 29-OCTOBER 5, 2008 INSIDE 26 ADVISER: ECONOMY CHALLENGES FRANCHISES. Solicitors balance expertise, neutrality LEGAL AFFAIRS BROACHING t r A y Bod Law directors legal voice of municipality LEFT: Adcom Communications employees James Abrams (left), Lara Schmida and Dustin Elliott display their tattoos at the Cleveland advertising an web development firm. Employees are permitted to display nonoffensive tattoos and body piercings. BELOW: Dustin Elliott displays one of his tattoos in the firm’s office. By SHARON SCHNALL [email protected] A ttorney I. James Hackenberg knows what skill is essential not only to be a successful municipal law director, but a long-running one. “The key is not to take sides and remain neutral, and that sometimes is difficult to do,” said Mr. Hackenberg, law director for Kirtland Hills Village and solicitor for the Village of Madison. “But what you should learn quickly is today’s worst enemies are tomorrow’s best friends.” That insight serves him well. Mr. Hackenberg, managing partner of the Painesville law INSIDE: Solicitors firm Baker, or law directors Hackenberg & must have the Hennig Co. right personality LPA, was to effectively serve Mentor’s law in the position. director from Page 22 1972 to 2002. He has been Kirtland Hills’ law director since 1976, and returned this year as Madison’s solicitor, after a previous stint from 1971 to 1980. How solicitors and law directors are selected varies by village and city. “In a village, council appoints the solicitor; or if the voters have approved an alternative method of selection, then the solicitor may be appointed by the mayor with council approval,” said John Gotherman, general counsel for the Ohio Municipal League and Ohio Municipal Attorneys Association. “In cities without a charter, the position is an elected one,” he added. “In chartered cities, the city law director may be appointed by the mayor, city council, city manager, or elected by the people or by some combination of those alternatives.” Attorneys with a full-time practice routinely serve as part-time village solicitors. “A full-time solicitor would be overkill. We’re not of the size where that would make sense,” said John Dishong, the Village of South Russell’s council president. “This is a great option for us. We get the value we need for what we can afford.” Since 1998, South Russell’s representatives have contracted with attorney David Ondrey of the Chardon law firm Thrasher, Dinsmore & Dolan LPA. Mr. Ondrey said See SOLICITOR Page 22 JASON MILLER PHOTOS Some firms flexible, but employers within rights to require tattoo, body piercing coverage By KATHY AMES CARR [email protected] A s the professional workplace becomes more socially and culturally diverse, more employers may draw up a specific policy when it comes to addressing appropriate displays of body art, a human resources professional and employment law attorney say. Local employers representing a range of industries, from health care to advertising and law firms, vary on whether they have a specific policy addressing body art, and one firm is in the process of incorporating a standard into its general appearance policy. Each company’s approach to body art and piercings vary, but brand image and customer expectations largely seem to indicate whether employees can tout their art. In general, companies may have policies that limit their employees’ personal expression, as long as such policies do not result in discrimination against a protected class under equal employment opportunity laws, says Lori Long, a local human resources consultant. See ART Page 23 DIFFERENT STROKES Firms vary on their body art approach. Here are some perspectives: ■ Benesch, Friedlander, Coplan & Aronoff LLP: The law firm will be drafting a policy requiring that body art be covered. ■ MetroHealth: The health care institution says body art and piercings should be covered for safety and image reasons. ■ Adcom Communications: Non-offensive tattoos and piercings are permitted. 21 CCLB 09-29-08 A 22 CCLB 9/25/2008 1:26 PM Page 1 22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 LEGAL AFFAIRS Solicitor: Law directors also practicing attorneys continued from PAGE 21 he is the firm’s fifth attorney to serve South Russell in the past 57 years. Mr. Ondrey was solicitor for another Geauga County community, the Village of Burton, from 1986 to 2007. Village solicitors or law directors are the primary go-to people for a diverse list of needs: employment issues, including workers’ compensation; probate, estate and income tax concerns; open records requests; misdemeanors; zoning, construction and real estate matters. “If you’re getting the idea that the village law director learns a lot of this stuff as it comes up, that’s a pretty fair impression,” said Thomas Reitz, a partner with Christley, Herington & Pierce of Aurora who has been the Village of Hiram’s solicitor since 1988. “I think that’s true of many areas of law,” said Mr. Reitz, who last year also became the Village of Mantua’s solicitor. Both Hiram and Mantua are in Portage County. After 28 years, Oberlin law director Eric Severs still is learning nuances of the job, although with longevity, most matters recycle themselves. He deals with human resources issues arising from the Family Medical Leave Act of 1993, the Americans with Disabilities Act of 1990 and the Fair Labor Standards Act of 1938. At times, he provides legal counsel concerning law and order issues at Oberlin College and green energy issues for the town’s electric plant. Mr. Severs also represents the city’s boards and commissions. “Understand, I represent not only council but all the department heads,” said Mr. Severs, who also runs Oberlin law firm Eric R. Severs Co. “I also represent the municipal court including police and fire.” While infrequent, these legal experts may recommend that their clients seek outside counsel. “I know when to pursue a matter, when to resolve a matter and when to retain a law firm,” Mr. Severs said. Mr. Reitz said he has not tried an eminent domain case; he would recommend using outside counsel. Likewise, Mr. Hackenberg would defer to attorneys with labor law expertise for negotiations with unionized employee groups. Although these municipal clients offer practice stability, they cannot be treated as the only client. Mr. Severs, who is a sole practitioner, devotes 50 to 80 hours a month to his law director duties in addition to his other clientele. The villages of Hiram and Mantua represent 40% of Mr. Reitz’s workload. Mr. Hackenberg said his two Lake County accounts make up 15% of his client time. When Mentor was in the mix, it was more than 40%. The three attorneys interviewed maintain work weeks in excess of 40 hours, and all are masters of prioritization. For attorneys practicing in a law firm, the municipal workload can be delegated, as needed, to other attorneys in the practice. Not so, for a sole practitioner. “I’ve always (said) I would put this job ahead of my private practice and I have,” Mr. Severs said. “No one forced me to be the city’s attorney.” ■ PERSONALITY MATTERS MARC GOLUB Attorney I. James Hackenberg, solicitor for the Village of Madison and law director for Kirtland Hills Village, whose village hall is seen in the background, says maintaining a fair, balanced position is the key to retaining the job. Mr. Hackenberg has been Kirtland Hills’ law director since 1976. Baker Hostetler is pleased to be named Best Corporate Law Firm in Cleveland – by Corporate Board Member magazine Baker Hostetler, with more than 600 lawyers across the country, has been helping businesses achieve, maintain and defend leadership positions in their markets for more than 90 years. To learn how our corporate team can serve you, visit us at www.bakerlaw.com. Cincinnati Houston Cleveland Los Angeles © 2008 Baker & Hostetler LLP Columbus New York Costa Mesa Orlando Denver Washington, DC Attorney Thomas Reitz could not imagine having been a law director or village solicitor in the earliest years of his career. Mr. Reitz joined the Aurora law firm Christley, Herington & Pierce in 1988 and became Hiram’ s solicitor in 1998, after the previous solicitor, Gary Pierce, died. Mr. Pierce also was a partner in Mr. Reitz’s firm. By then, Mr. Reitz had gained experience with many aspects of law, including municipal law. But, critical to being solicitor, he said he had developed a “bedside manner” to address differing concerns and emotions of the village council, mayor, employees and citizens. “(The solicitor) stays above the fray,” said John Dishong, the Village of South Russell’s council president. “He provides us guidance. ... He states the facts and doesn’t pontificate.” Since 1998, attorney David Ondrey of the Chardon law firm Thrasher, Dinsmore & Dolan LPA has been South Russell’s solicitor. Inevitably, when a solicitor or law director renders legal advice, someone is going to be unhappy. A law director’s counsel — objective and based, in part, on interpretation of local, state and federal codes — can support one or more council members over others or all of council but not the mayor. The law director or solicitor must tell those parties why he respectfully disagrees with their reactions, Mr. Reitz said. The person must explain why he or she is obligated to follow the law and not, for example, get involved in operational disputes. “They (solicitors) need to be the voice of reason,” Mr. Dishong said. — Sharon Schnall Lawsuits over texting charges pushing cell carriers’ buttons By JEFFREY SILVA RCR Wireless News I t’s official. The plaintiffs’ bar smells blood. The mobile-phone industry suddenly finds itself under siege over rising text messaging prices; there are now five different class-action antitrust lawsuits against the nation’s largest wireless carriers over the issue. The growth followed Senate Judiciary antitrust subcommittee Chairman Herb Kohl’s (D-Wis.) announcement that he was looking into the matter. And that’s not counting a slew of consumer classaction lawsuits top cellular carriers face over extra charges for text messages and other content that subscribers claim they didn’t authorize. The class-action antitrust lawsuits contributing to the texting tsunami are playing out in federal courts in Illinois, Ohio, Kansas and, now, Texas. Where is all the antitrust litigation against the wireless industry headed? As a procedural matter, the next likely stop is the Judicial Panel Multidistrict Litigation, a body created by Congress that consolidates similar suits and transfers them to a single U.S. District court for further proceedings. The filing to date of five antitrust class-action lawsuits in various federal courts further raises the financial stakes and legal exposure for AT&T Mobility, Verizon Wireless, Sprint Nextel Corp., T-Mobile USA Inc. and, in one case, Alltel Communications LLC. One of the first class-action antitrust texting lawsuits brought against the four national wireless carriers in Illinois federal court attracted nationwide media attention. But that suit, which alleges conspiracy among top wireless providers to increase the price of text messages over the past three years from 10 cents to 20 cents each, turned out just to be the beginning. The four additional antitrust class-action texting lawsuits strongly suggest the mobile-phone industry has a much bigger legal problem on its hands. Tthe antitrust class-action lawsuits signal that trial lawyers across the country believe they have zeroed in on a legal vulnerability among service providers in the $143 billion mobile-phone industry. The mushrooming of antitrust and billing class-action lawsuits against top cellular operators has begun to take on the appearance of the kind of massive litigation on early termination fees that resulted in settlements and court judgments costing wireless carriers tens of millions of dollars. ■ CCLB 09-29-08 A 23 CCLB 9/24/2008 4:26 PM Page 1 SEPTEMBER 29-OCTOBER 5, 2008 CRAIN’S CLEVELAND BUSINESS 23 WWW.CRAINSCLEVELAND.COM LEGAL AFFAIRS Art: Industry, image affect firm approach continued from PAGE 21 Michelle Arendt, an attorney at Ogletree, Deakins, Nash, Smoak & Stewart in Cleveland, expands on the concept. “Employers must have a legitimate business reason for having a body art policy, and they must be consistent when they apply it,” Ms. Arendt said. “Our policy is loose, but I think it depends on the field,” said Joe Kubic, CEO of Adcom Communications in Cleveland. “For an individual to think he or she can present themselves in any way that is counterproductive to how the firm presents its brand indicates the individual probably shouldn’t work there.” According to a 2006 report by the Journal of the American Academy of Dermatology, 24% of individuals ages 18 to 50 have tattoos, and 14% have at least one body piercing other than an ear piercing. “Each department has the right to expand upon our general appearance policy, primarily for safety reasons.” – Bruce Reimer manager of employee and labor relations, MetroHealth One local law firm said the trend is concerning, and plans to take a more proactive approach to body art displays. “We’ll be drafting a policy on body art in the workplace over the next year. We take a very conservative approach to body art, and no tattoos or body piercings, beyond ear piercings, will be permitted,” said Mark Biddlestone, director of operations and human resources at Benesch, Friedlander, Coplan & Aronoff LLP. Region of the American Red Cross. “Sometimes it’s not feasible to cover them up, but if anything, the feedback on my tattoos has been positive, not negative,” Mr. Wagner said. “But I’m flexible. If I were told to cover them up, I would.” Mr. Wagner represents a majority of professional employees Ms. Arendt said she believes are directed more by personal judgment than policy when it comes to personal expression. “I have a tattoo on my ankle, but when I was interviewing for the position, I covered it up. I didn’t want to draw attention to it either way,” she said. Mirifex Systems LLC, a Sharon Center-based IT consulting firm, also has a general appearance policy, and some employees who work inside the firm’s office expose tasteful tattoos. But for consultants working out in the field, they are expected to dress according to the environment by which they are surrounded, said Mirifex CEO Bill Nemeth. “If the consultants are working in a bank, they have to dress like they’re in a bank,” he said. Something up their sleeves The Sherwin-Williams Co. represents a diverse conglomerate of employees, but their policy is the same no matter the department, said spokesman Mike Conway. “Our store employees can wear short-sleeved or long-sleeved shirts, but if they have a tattoo on their arm, they have to wear the long-sleeved shirt,” he said. However, strict dress code guidelines can diminish the talent pool. Ms. Long advises clients to consider carefully the reasons for imple- menting a body art policy. “To say they don’t like body art isn’t a good enough reason,” said Ms. Long, who also is an associate business professor at Baldwin-Wallace College. “Otherwise, they may risk passing up good job candidates.” Whether they have specific rules addressing body art, these employers all say they’ve never had an employee challenge the dress code. That’s not to say it won’t happen in the future, said Ogletree’s Ms. Arendt. “If a company is thinking about drafting a dress code policy in their handbook, my advice is that the company should take a position on body art and incorporate it into their policy,” she said. “It’s likely to come up.” ■ MY BENESCH “Technology companies face unique legal issues. Thankfully, we don’t face them alone.” Mike Broderick Co-founder & CEO Turning Technologies Dress for the job you want Most employers don’t have specific policies addressing tattoos or piercing, according to the Society for Human Resource Management, a global professional human resources association. A 2006 survey of 434 randomly selected human resource professionals found that 35.9% of organizations have formal or informal policies addressing body piercings. Fewer than one-fourth, or 22.3%, have a formal or informal policy addressing tattoos. On a warm summer day, for instance, you may see any number of employees exposing their tattoos at Adcom, which isn’t a problem at the web development and ad agency. Mr. Kubic said he estimates between 30% and 40% of employees have a tattoo or body piercing, a number he said represents the increasing prevalence of body art on individuals. But if employees are serving in a role that represents more client and patient interaction, for example, companies and institutions have the right to enforce additional dress code limitations, Ms. Arendt said. “Each department has the right to expand upon our general appearance policy, primarily for safety reasons,” said Bruce Reimer, manager of employee and labor relations at MetroHealth. Jeff Wagner said his tattoo is visible when he wears short-sleeved shirts while on the job as a supervisor for the Northern Ohio Blood Services M Y T E A M According to Inc. magazine, Turning Technologies is the fastest-growing privately held software company in the nation. They also top the Weatherhead 100 list. In less than seven years, Turning Technologies has grown to 110 employees with distribution in 84 countries, which presents some interesting legal challenges. That’s why they trust Benesch as their general counsel. Our team approach gives Turning Technologies access to legal experts with a wide array of specialties ranging from global IP protection and human resources to mergers and acquisitions. To learn more about our relationship with Turning Technologies, visit beneschlaw.com/myteam Cleveland • Columbus • Philadelphia • Shanghai • Wilmington Featured attorneys (left-right): Gregg Eisenberg, Christopher Reuscher, W. Scott Harders, Ross J. Kirchick, Gary Yashko, Mark Avsec, Bryan Schwartz, Steve Auvil, Donald Keller, M. Casey Kucharson, Rick Tracanna, Bryan Jaketic, Joseph Gross and Laura Beresh. © 2007 Benesch Friedlander Coplan & Aronoff LLP CCLB 09-29-08 A 24 CCLB 9/24/2008 4:26 PM Page 1 24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 LEGAL AFFAIRS After foreclosure, people still have housing options Former homeowners likely renting or living with family By KATHY AMES CARR [email protected] W arner Troibner never dreamed he’d lose his home to foreclosure. But after the mortgage loan officer’s six-figure, commission-only income was cut in half, he filed for Chapter 7 bankruptcy in June. His 2,400-squarefoot Westlake split-level, for which he paid about $2,000 a month, in July was sold at a sheriff’s sale. Mr. Troibner moved into a 1,300square-foot ranch in Fairview Park, which he is renting from a client for $1,000 a month. “My credit score went from 750 to 600,” Mr. Troibner said. “I took my credit report with me and was very up front with (the landlord) about my situation.” Mr. Troibner is among an increasing number of individuals, representing a broad economic spectrum in Northeast Ohio, who have lost their homes to foreclosure. Because their credit is damaged and mortgage lending practices are stricter, they have to rent or move in with family, say area housing research organizations. “A lot of these people have income and a job,” said Bill Faith, executive director of Coalition on Homelessness and Housing in Ohio, a housing advocacy group. “It would seem most people are going back to renting. Where else would they go?” Mr. Faith and housing industryrelated and legal professionals say it’s difficult to determine where these individuals are going once they lose their homes, and much of their surmise is based on anecdotes, not hard facts. The effects According to RealtyTrac, a foreclosure information provider, foreclosure filings were reported on 37,689 Ohio properties in the second quarter of 2008, the thirdhighest total in the country and a rate of one in every 134 households, the nation’s sixth-highest state foreclosure rate. Foreclosure filings don’t necessarily lead to foreclosures, in which borrowers lose the title to their property. July foreclosure rates throughout Northeast Ohio were particularly high in Cuyahoga, Lorain, Summit and Stark counties, where the figures ranged from one in every 189 households in Summit to one in JANINE BENTIVEGNA Warner Troibner says he and his son, Max, are content in their new Fairview Park ranch, which Mr. Troibner is renting. The mortgage loan officer lost his home in Westlake to foreclosure after his income fell because of housing-related woes. “It would seem most people are going back to renting. Where else would they go?” – Bill Faith executive director, Coalition on Homelessness and Housing every 306 households in Cuyahoga. Indeed, foreclosure is affecting everyone, said Kim Hammond, a foreclosure department attorney at OVERWHELMED BY OPTIONS FACING YOUR BUSINESS? Confused by which direction to take? Look to Roetzel & Andress for the legal guidance you need. Our more than 240 attorneys, practicing in over 40 areas of law, can provide sound legal counsel, regardless of your industry or the challenges your business faces. Our attorneys represent clients on local, regional, national and international issues and strive to offer high quality legal counsel that exceeds our clients’ expectations. Learn more about Roetzel & Andress at www.ralaw.com. PA R T N E R I N G F O R S U C C E S S 222 South Main Street l Akron, OH 44308 l 330.376.2700 One Cleveland Center, Ninth Floor l 1375 East Ninth St. l Cleveland, OH 44114 l 216.623.0150 AKRON CINCINNATI CLEVEL AND COLUMBUS FORT L AUDERDALE FORT MYERS NAPLES ORLANDO TALLAHASSEE TOLEDO WASHINGTON, D.C. Keith D. Weiner & Associates Co. in Cleveland. “We’ve seen foreclosures in the more affluent areas like Shaker Heights, Chagrin Falls and Pepper Pike,” she said. A foreclosure, however, stays on an individual’s credit report for seven years, making it difficult for an individual to obtain another mortgage loan, said John Kozlowski, general counsel for the Ohio Credit Union League, which represents about 80% of Ohio’s credit unions. Most banks won’t allow people who lose their homes to foreclosure to obtain another mortgage loan for three years after the bank has sold and transferred the property, said Glenn K. Franko, a Realtor with Real Living Realty One’s Cleveland/Lakewood office. Housing alternatives With a variety of economic circumstances affecting so many people, such as job loss, a sick family member or divorce, individuals can find landlords who are willing to consider the big picture and allow them to rent, despite their negative credit. “People need to find a way to explain their circumstances,” said Jay Seaton, president of the nonprofit Consumer Credit Counseling Service, which has offices throughout Northeast Ohio. Securing a rental unit from a reputable renter, however, can be especially difficult if the individual defaulted on other payments, such as utilities, said Ralph W. McGreevy, executive vice president of Northeast Ohio Apartment Association, which represents apartment owners and managers. “I know where they’re not ending up, and that’s in the more professional landlord units because they’re not doing credit and criminal background checks,” Mr. McGreevy said. But if people who lost their homes still kept their utility payments current, they may have more rental options than those who let all payments go into default. The attempt demonstrates financial responsibility, he said. HOUSING COUNSELING Help is available for individuals who face foreclosure, according to Mark Wiseman, director of Cuyahoga County’s Foreclosure Prevention Program, which connects distressed borrowers with nonprofit counseling agencies through United Way’s First Call for Help line. Since March 2006, the program has received 10,000 calls from individuals facing foreclosure, and counselors have been able to keep 2,500 people in their homes as a result of the program. Jay Murdock, executive director of the Stark County Out of Partnership program, echoed similar advice. The program also provides housing counselors and works with lenders to help keep borrowers in homes. “We officially started doing mortgage intervention and housing counseling in July, and so far, we’ve done five loan modifications,” he said. “We’re not turning anyone away.” Details: www.dontborrow troublecc.org or www.scopp.org Another alternative becoming more attractive for people who have lost their homes is a lease option or lease purchase. In a lease option, individuals have the option to buy the home after a specified lease period. “They’re basically glorified renters, but are responsible for property maintenance, rent and possibly even a down payment,” Mr. Franko said. Mr. Troibner has opted to pursue a three-year lease purchase, so after three years, he will buy the Fairview Park home. “Lease purchase is like owning a home but without having the title,” Mr. Troibner said. Losing the larger home was unfortunate, but Mr. Troibner advised people who have been through similar situations to look at the big picture with optimism. “I’ve learned to do more with less,” he said. “I’m one of the people it worked out for. I’m a survivor.” ■ CCLB 09-29-08 A 25 CCLB 9/25/2008 1:26 PM Page 1 SEPTEMBER 29-OCTOBER 5, 2008 CRAIN’S CLEVELAND BUSINESS 25 WWW.CRAINSCLEVELAND.COM LEGAL AFFAIRS THEINTERVIEW MICHAEL BRITTAIN President Cleveland Metropolitan Bar Association By ARIELLE KASS [email protected] L ess than a year after the region’s two competing bar associations merged to form the Cleveland Metropolitan Bar Association, the board’s first solo president — Calfee, Halter and Griswold attorney Michael Brittain — said he’s been thrilled by how smoothly the merger has gone. There are no competing factions within the Bar, he said, and the group is expanding its efforts to enroll more people, including judges, who were hesitant to join either the Cleveland or Cuyahoga County bar associations in the past. Mr. Brittain has a number of initiatives he hopes to pass through in his year as president, including the creation of a three-year strategic plan and more interaction with nonprofit organizations. Here, he talks about the challenges he sees for the group going forward and the successes it has already had. Q: How does the Metropolitan Bar differ from its predecessors? A: Internally, we perceive ourselves as one bar association, not one of two bar associations. We have a focused vision of who we are. It’s beneficial because now when we speak, we speak with the voice of all Cleveland lawyers, so we have a stronger voice. The judges all say it’s great because now there’s one bar association that we can belong to and one bar association we can work with, so that’s been great. Externally, my adversaries are shaking my hand and saying this is such a great thing. …We’re able to attract more lawyers because people say there’s one bar, there’s no confusion, and we speak with a stronger voice. We can provide greater service, I think, to the community because now we’ve got all the lawyers behind our programs. Q: How has what you’re doingchanged? Q: What challenges do you face going forward? A: One of the biggest challenges we face is attracting the lawyers in our community who never belonged to either bar association. One thing we thought and still believe is that, by consolidating the bar association, we could go to nonmember lawyers with a new message, saying, ‘We are a new bar association. We are committed to serving all the lawyers in our community, all size law firms, all practices. And we want you to belong because we want you to believe what we believe — that this is a great bar association — and to truly be part of our legal community, you need to belong to this bar association.’ And I think that’s true because more judges are joining now. I think what we’re going to have is this whole community of lawyers and judges who belong to our bar association, and you’ll really feel part of this community if you belong to it, you’ll network with other lawyers and judges and have an opportunity to lead. The great thing about a bar association is it gives lawyers a vehicle to be leaders. Not just in the bar association, but in the community. Q: How would you describe the personality of the Cleveland Metropolitan Bar Association? A: I think it’s a hybrid. I don’t think either personality of the old bar associations is really active. I was involved on the negotiating team. … The more we got involved in the negotiations, the more we realized we were so much alike. The historic reasons for having two bars were really in the past. Q: Why did it take so long for the two groups to merge? A: I think it was the fact that lawyers are such creatures of habit, and both bar associations and the persons who were leading those bar associations were in the habit. … We were in comfort zones. Change is always difficult, but change is always exciting. People were in those comfort zones; they were stuck in their habits. year 2000. At the last minute, it fell through, because strong factionalism reared its head. I think the leadership in place at that moment, when we started talking in February 2007, the leadership was of the same mind on both sides. It was a negotiation of equals, and that was very important. It had to be a consolidation. If you treat it that way, you’re going to be successful. And really at the end of the day, we want the same thing. We want to help others through the practice of law, we want to stand up for justice, we want to stand up for fair and impartial courts, we want to protect liberties and people’s rights, and we want to have a prosperous legal career. We all want the same thing. And let’s do it together. ■ Q: Will there ever be a need for two bars again? A: This is the right way to do it. It’s just right to have one bar in this town. We are a united legal community. We’re a diverse community, but we’re united. We’re all lawyers. 3&46-54 "MPUPGMBX¾SNTQSPNJTFSFTVMUT 3FNJOHFSEFMJWFSTUIFN8IFUIFSJUµT#VTJOFTT -BX$PNNFSDJBM-JUJHBUJPO3FBM&TUBUF-BX &TUBUF1MBOOJOH1SPCBUFBOE5SVTU-JUJHBUJPO )FBMUIDBSF-BXPS8PSLFSTµ$PNQFOTBUJPO *TTVFT3FNJOHFSJTUIFMBX¾SNUPUVSOUPGPS BMMPGZPVSMFHBMOFFET8FIBWFUIFFYQFSJFODF BOEFYQFSUJTFUPHFUZPVUIFSFTVMUTZPV XBOUJOBXJEFWBSJFUZPGQSBDUJDFHSPVQT#VU EPOµUUBLFPVSXPSEGPSJUZPVDBOTFFPVSSFTVMUT GPSZPVSTFMGBUXXXSFNJOHFSDPNSFTVMUT Q: Why was this finally the right time? A: If anything, we’re doing more. More is expected of us, because we are one bar association now and we have to serve all our constituents. A: This was an evolutionary process. The two bar associations came within a heartbeat of consolidating in the “We speak with the voice of all Cleveland lawyers, so we have a stronger voice.” – Michael Brittain president, Cleveland Metropolitan Bar Association 8IFOZPVOFFESFTVMUTDBMMPVS .BOBHJOH1BSUOFS4UFQIFO&8BMUFST Reminger AT TOR N E Y S AT L AW est.1958 Results.Period. XXXSFNJOHFSDPN RUGGERO FATICA CCLB 09-29-08 A 26 CCLB 9/26/2008 11:23 AM Page 1 26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 LEGAL AFFAIRS Sluggish economy challenges franchise model C hallenging business conditions have some franchise owners wishing they never took the plunge. Of course, that’s also true for some owners of non-franchise businesses, but franchised businesses are different from non-franchised businesses in important respects. Franchises typically involve a business concept developed by someone else — the franchiser — where the franchiser owns the business name and imposes a uniform Tuesday, October 7, 2008 11:30 am Registration • 12 Noon Lunch & Program CHANCELLOR ERIC FINGERHUT DR. MICHAEL SCHWARTZ MODERATED BY LEON BIBB Board of Regents, State of Ohio President, Cleveland State University Emmy Award-Winning Anchor, NewsChannel 5 For more information, go online: www.ccatlanderhaven.com or call 440.449.0700 DIGITAL INVESTIGATIONS We turn digital evidence into intelligence. system of operating rules on several independently owned businesses — the franchisees. The franchiser provides training to new franchisees and implements marketing and advertising programs for the common benefit of all franchisees. These benefits come at considerable cost to franchisees in the form of initial franchise fees, continuing royalties to the franchiser and loss of control over a variety of significant business decisions. For example, franchisees may have little say regarding how much to charge for a product or service and where to buy necessary products or services. Because franchisers control so many aspects of their business, franchisees can end up feeling betrayed when they fail. The stereotypical franchise agreement contains more than 40 pages of legal terms intended to protect the franchiser. Franchise agreements promise little to the franchisee, yet require much from them. Franchisees get the message that they must take the offer or leave it, and they sometimes sign the agreement without having an attorney review it. A franchisee may reason that if other people operate under the agreement, it must not be too bad. Only later do they discover the possible pitfalls. The franchiser might be able to require franchisees to comply with promotions like a $1 menu or 2-for-1 product giveaways; that could force franchisees to sell at a loss, yet still owe a royalty to the franchiser. In a 10-year franchise agreement, even if the franchisee goes out of business after three years, the shareholders might still be personally liable to the franchiser for lost royalty payments or liquidated damages for the full 10 years. Sometimes, franchisees end up feeling that a franchiser has not kept pre-sale promises, but the written agreements typically exclude any DIGITAL INVESTIGATIONS We turn digital evidence into intelligence. claims based on such promises. Because of the potential for franchiser abuse, the Federal Trade Commission passed a trade regulation, known as the FTC Rule, to govern the sale of franchises and other business opportunities. In explaining the need for the rule, the FTC stated that franchisers “often made material misrepresentations about (among other things) … the costs to purchase the business, the success of the seller and its other (franchisees) and the (franchiser’s) financial viability.” The FTC Rule requires sellers of franchises and certain other businesses to provide an extensive disclosure document to the purchaser, similar to a securities prospectus, well before signing the contract. The FTC does not review the documents prior to their use by franchisers, and only the FTC can sue to enforce violations of the FTC Rule. An amended version of the rule, effective July 1, will require changes in the content of future disclosure documents, but the basic structure of the disclosure obligation remains the same. The FTC Rule does not prevent states from passing their own franchise laws, and many have done this. About 15 states have laws requiring franchise sellers to submit their disclosure document to the state for approval and registration before selling franchises. A number of other states, including Ohio, have laws regulating sale of franchises, but do not require pre-sale approval by the state. Ohio’s law, called the Business Opportunity Purchasers Protection Act, requires disclosure in a different format than is required by the FTC Rule. There are several exemptions, most notably an exemption for transactions which fully comply with the FTC disclosure format. The law also covers some transactions that function like a franchise, even if they are called something different, such as a trademark license or a partnership. ■ Mr. Dub is a Cleveland attorney who specializes in franchise law. CCLB 09-29-08 A 27 CCLB 9/26/2008 11:14 AM Page 1 SEPTEMBER 29-OCTOBER 5, 2008 CRAIN’S CLEVELAND BUSINESS 27 WWW.CRAINSCLEVELAND.COM LEGAL AFFAIRS Firm policies may Certain political views not protected leave opinionated ERIC JOHNSON A workers speechless Political expression rules vary by sector By CHRISTINE GORDILLO [email protected] science professor at Cleveland State University who studies political behavior in the workplace. ith the likes of Marc Many companies encourage Dann, Jimmy Dimora lively debate and discussion and Frank Russo proamong employees. viding plenty of water “If people are talking about cooler fodder this political season, (politics) around the water cooler, and a historic presidential camthat’s OK,” said Mike Conway, a paign that has tested public sensispokesman for paint maker bilities about race and gender, it Sherwin-Williams. “Good dialogue might be good to know if what you is encouraged, whether it’s about say or do in your workplace regardfamily events or political events.” ing politics can get you in trouble. A number of large Northeast Whether or not you can freely Ohio employers expressed a express your opinions at your job company philosophy that not only “depends on who the employee is, invites discussion, but facilitates who they work for and what state being informed and involved. they work in,” said employment “(Eaton Corp.) recognizes what attorney Ellen Simon, of counsel impact government has on us as a for McCarthy, Lebit, Crystal & company and as people,” said Barry Liffman in Cleveland. Doggett, senior vice president of Some states, such as New York, public and community affairs at California and Nevada, have laws to Eaton. “It’s critical for our employees protect political speech, while Ohio to be engaged in the process.” does not. Employees’ rights also The Cleveland-based industrial differ depending on if you work for a manufacturer will post flyers and private employer, the government or send e-mails reminding its U.S. work are a part of a union, which often force of voter registration deadlines make the right to champion political and election dates. The company’s issues and candidates as part of a intranet also allows an employee to collective bargaining agreement. input his or her zip code and a page “Public employees have a constipops up showing local ballot issues, tutional right under the First candidates and current elected Amendment (to officials, according free speech),” to Mr. Doggett. “Private employees don’t Ms. Simon said. Sherwin“Private employ- have First Amendment Williams has a ees don’t have rights, although many think tagline for its First Amendphilosophy of they do.” ment rights, engagement: REV, – Ellen Simon or register, although many of counsel, educate, vote. think they do.” McCarthy, Lebit, Crystal & Liffman Private “We want our employers “have employees to be wide discretion to limit political active in their government,” said expression in the workplace,” said Colleen Carpenter, SherwinDoug Schnee, co-chair of McDonald Williams’ vice president for human Hopkins’ Labor and Employment resources. The company has even group. “An employee can be had the League of Women Voters dismissed for political speech.” come in for a brown-bag lunch While no employer wants to session to inform employees about squelch lively discussion among ballot issues and candidates. employees, companies do have to Watch those shirts ensure productivity is not affected and that no employee feels According to Ms. Simon, some harassed or discriminated against private companies can take that to due to a co-worker’s comments. the extreme and ban any political “Supervisors need to be tuned in expression on their grounds and (to employees’ interactions) so other are in their legal rights to do so. people don’t view (heated discus“They want to be neutral … and sions) as harassment,” said Susan don’t want to offend anyone or any Chermonte, who provides human customers, so no outward political resource guidance for members at expression is allowed,” she said. Employers Resource Council. At Sherwin-Williams, for example, the dress code specifies no logos on Lively water cooler talk shirts, so an Obama campaign TSupervisors are bound to come shirt would be out, Mr. Conway said. across such political banter, Similarly, no solicitation policies according to recent research. In a would cover employees asking for 2007 survey by Vault, an online contributions to any specific group employer information source, 66% or campaign. of respondents said political discusMs. Simon said if employers and sion occurs in their office, and more employees a like just keep level than half (52%) said that they are heads, no trouble should arise. open about their political views at “People should approach the iswork. Research also shows that the sue with common sense,” she said. workplace is the No. 2 place, after “Conversations or expressions that their homes, where people discuss don’t interfere or harass are probably politics, said Guowei Jian, a political going to be tolerated.” ■ W s a general rule, it’s prudent for all employers to keep politics out of the workplace. How an employer achieves this goal is determined by a number of factors. Regardless of whether the employer has a unionized work force, the National Labor Relations Act (NLRA) gives private-sector employees the right to engage in “concerted activities” for their “mutual aid or protection.” The Supreme Court has held this “mutual aid” or “protection” protects employees who seek to improve working conditions through “channels outside the immediate employeeemployer relationship,” which may include political expression. While the NLRA protects a certain level of open expression by employees, it extends only to political activity directly related to employment issues. An employee can rightfully say, “Obama supports minimum wage. He will help increase wages at our company,” but can be restricted from saying, “Obama is good for America. Vote Obama in 2008.” ADVISER The first example is protected. The second is not. Employers can place broad restrictions on employee speech that is political simply for the sake of being political. Protected speech issues also come into play in such non-work areas as cafeterias, break rooms and parking lots. Employees may engage in “protected, concerted activity” during non-work time in non-work areas and cannot be disciplined unless their actions somehow disrupt work operations. Even if the content of the message may be protected, the method of delivery may not be. Employees cannot run up and down the hallway shouting, “Obama supports minimum wage” for eight hours straight instead of doing their jobs. However, an employer should not issue discipline for non-disruptive, employment-related political statements that do not interfere with the employees’ daily work responsibilities. Prohibitions should apply to campaign paraphernalia — posters, flyers and buttons — although these already should be restricted through non-solicitation or non-distribution rules incorporated into existing company policies. It goes to the political speech issue; wearing a statement is the same as talking about it. Buttons that say “McCain 2008” or “Obama 2008” are not speaking to a specific issue protected by the NLRA. They’re making a general political statement. Those statements can and should be restricted. Restrictions also may be applied to e-mail communications. Employers can implement an e-mail policy banning non-business use of corporate e-mail systems or banning solicitations for membership organizations. With such a policy, employers can prohibit campaigning via company e-mail. If a company doesn’t have a policy that addresses these items, there’s no better time than now to institute one with the help of legal counsel. ■ Mr. Johnson is a partner in the Labor & Employment Group at Walter & Haverfield LLP in Cleveland. Kahn Kleinman has Joined Taft Our Attorneys Aggressively Represent Clients to Protect Their Businesses. About Taft 400 attorneys and legal professionals in 9 offices (8 US and Beijing) 85 attorneys named Best Lawyers in America 32 attorneys recognized in Chambers USA America’s Leading Lawyers 75 attorneys named Super Lawyers for 2008 by Law & Politics Recognized as a “Go To Law Firm“ in Corporate Counsel by Fortune 500 companies One of the top 100 law Taft Stettinius & Hollister LLP is proud to announce that the outstanding attorneys and legal professionals of Kahn Kleinman have joined the firm. Together, we offer greater depth and breadth of legal services across every area of law important to our clients’ success. firms Fortune 1000 clients cite – unprompted and by name – for delivering superior client service (BTI Client Service A-Team) Named a “Best of the Best” Real Estate law firm by Midwest Real Estate News Protecting our clients – through litigation and alternative dispute resolution, including arbitration and mediation – is integral to their success and growth. 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Taft Stettinius & Hollister LLP 200 Public Square, Suite 3500, Cleveland, OH 44114-2302 / P: (216) 241-2838 / www.taftlaw.com Cincinnati / Cleveland / Columbus / Dayton / Indianapolis / Northern Kentucky / Phoenix / Beijing CCLB 09-29-08 A 28 CCLB 28 9/25/2008 1:35 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 REAL ESTATE Don Schwaller - Classified Manager Phone: (216) 771-5172 Fax: (216) 694-4264 E-mail: [email protected] Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card INDUSTRIAL SPACE CRESCO real estate 216.520.1200 • www.crescorealestate.com INDUSTRIAL SOLON, OH - 87,441 sf on 4.6 acres - manufacturing - warehouse - 8 docks - heavy power - newer office - sale/lease - Armand Aghajanian ELYRIA - Rt. 57 and I-90 - 50,116 sf - great visibility and access - available for lease - $3.95/ sf renovated in 2007 - divisible to 17,600 sf - Kevin Kelly USER/INVESTOR OPPORTUNITY - 42,400 sf on 4.06 acres - 11,400 sf vacant/balance leased - 20’ clear - 4 DI’s - 3 DK’s - 1979 masonry construction - Joe Barna, SIOR MACEDONIA - 25,000 sf sale/lease AC showroom w/ great freeway access - upgraded lighting - well maintained - suitable for retail, wholesale, assembly or high-tech - Matt Beesley, SIOR I-77/I-480 - 25,000 sf with 2,000 sf office - docks & drive-ins to suit - Fred Christie, SIOR FOR LEASE - in low tax Valley View - newer building - 15,600 sf w/ 5,600 sf of high image office - server room - breakroom - shop lav - 18’ clear height - insulated - 2 docks - 1 drive-in - Simon Caplan, SIOR, Bob Garber, SIOR or Eliot Kijewski 2,000-18,000 SF - refurbished warehouse for lease w/ 450 sf office - dock and drive-in - 5 mins from I-90 - low rates - easy access - Ken Anderson CLEVELAND - WEST FOR SALE - 8,473 sf industrial building with heavy power - OHD 20’ clear and storage yard - George Pofok, CCIM or Joe Barna, SIOR RETAIL SPACE REAL ESTATE WANTED Across from Eaton Square Approx. 3,000 Sq. Ft. Occupancy Feb. 2009 Call Sharon 216-956-6818 • 216-464-1422 updates, sign up @ CrainsCleveland.com/Daily AUCTION Independence 1.56 Acres Main Street Marblehead, Ohio Full Info At www.ohioauctioneer.com FOR SALE BY OWNER Please contact Owner, Peter Wairegi, directly at 216-225-8981 Or Owner’s Agent, Ernest Tisdel, at 440-786-2649 AUCTIONS Jack Bradley Realty, Inc. 419-619-9424 COMMERCIAL SPACE Income Producing Commercial Building, with Office and Warehouse Space. Located just off I 480 in Warrensville Hts. LAND For daily on-line Greg Peiffer, Auctioneer, LLC OFFICE TIME TO PURCHASE A OFFICE BUILDING DOWNTOWN? YES! - unique buy - 4 story 60,000 sf - value priced - Rico Pietro SUBLEASE OPPORTUNITY - below market rental rates - 19,322 sf - $13.50 sf as-is longer term thru 8/31/2014 - great location - many amenities - Pat Reardon, SIOR NEW 7,328 SF OFFICE SUBLEASE - thru 11/30/2012 - 65 existing workstations - 1 private office - 1 conf. room - large kitchen - alarm system in place - Pamela Bertovich or Tom West, SIOR READY FOR TENANT BUILD OUT - 1,200 sf office space for lease in Middleburg Heights - electrical and janitorial service provided - Laura Malone Chagrin Blvd. Shopping Centers Motivated Buyer 25,000 – 200,000 sq. ft. Value add opportunities Gross leases acceptable Contact: Emmco Corp. Broker [email protected] 214' Frontage w/Lake View October 11 . 11:00am Owner Needs To Sell Immediately! NEW EXCLUSIVE - 3,770 sf in highly visible location - available immediately - next to Giant Eagle shopping center - Bob Garber, SIOR FOR SALE SANDUSKY, OHIO - car and truck wash 101 - located on SR 101 - just south of the Rt. 2 exit ramp - 3 truck bays - 3 car bays (2 self serve, 1 automatic) - Joe Solkiewicz COMMERCIAL - .53 acre development site with existing 7,272 sf commercial building 19702 Center Ridge Road in Rocky River - $950,000 - Tom West, SIOR Industrial/Commercial Sites Three commercial/industrial properties available for lease, 18,000 SF (divisible office/warehouse) & 5,000 SF (office) & 4,000 SF (office/warehouse) Sell / Build to suit Chris 2-20 acres, Avon 6 Acres, Sheffield 75 Acres, Sheffield Gerent’s Realty 216.446.3490 440.949.2505 OFFICE SPACE 1-800-OFFICES Offices available now at the best market price, guaranteed.* 3 Cleveland area locations. Visit us at regus.com *Offer available on similar inventory. Limited-time offer. Medical Space For Lease TWINSBURG AREA University Suburban Health Center Beautiful, contemporary office building has suites available for lease. 2,247 sq. ft. of primary care space. Available all or in part. Immediate occupancy. Newly renovated. Ancillary services and on-site cafe. Easy access to I-271 and RTA Each suite 800 sq. ft. or can be combined. Large foyer entry with individual heat and air. Easy freeway access with ample parking. Contact: [email protected] or 216-382-6056 For appointment to see 330-298-0100 INDEPENDENCE 7100 E. Pleasant Valley Rd. Award Winning Building Offering Class A Office Space Third Floor 2,500 sq. ft. First Floor 1,300 sq. ft. Available Immediately www. independencecorporatecenter .com 216-674-0525 ARE YOU READING THIS? This small ad space could bring BIG BUSINESS. Contact Don Schwaller at (216) 771-5172 [email protected] CLASSIFIED BUSINESS SERVICES Prepare NOW to save on your 2009 Health Plan Renewal Looking to Buyout Your Boss? Want to Sell to a Senior Manager? DEPENDENT ELIGIBILITY AUDITS Evolution Capital Partners is a committed fund typically investing $1-10 million of equity, in partnership with management, to sponsor buyouts of manufacturing, specialty service and value-added distribution businesses. For more information, contact: Barbara Hernandez 216-593-0402; [email protected] www.evolutioncp.com Facilitate Growth Through Capital & Management Support Want to SAVE BIG on your UTILITY COSTS? SAVE A MINIMUM of 50% and up to 75% on your Plant/Warehouse Lighting Costs while improving light quality SAVE 25 – 50% on your Plant/Warehouse Heating Costs Federal EPACT Tax Deductions available for Lighting Projects completed by 12/31/08 No Cost/No Obligation Energy Audits [email protected] Jack 440-835-1919 Large Group Health Plans / School Districts / Municipalities / Unions 5–15% of all dependents on your health plan are ineligible for coverage. Stop paying for these individuals and save a fortune. Remove ineligible high claimants from your plan. Local Benefits Firm offering Dependent Eligibility Audits. Contingency Fee Basis. 440-930-5096 x 7 or [email protected] WWW.ELITEBENEFITS.US A Better Way to Promote Your Business Crain’s Cleveland Business BUSINESS SERVICES DISCOUNT RATES AVAILABLE! Call Don Schwaller... 216.771.5172 Delivery Service Have freight? Need it delivered? We can help. Call us at Ideal Delivery for all of your delivery needs. SPORTS & ENTERTAINMENT BROWNS FANS Prime Location Suite Available Enjoy watching the Cleveland Browns from a Prime Suite at the 40-yard line during the 2008 season. We have dock high straight trucks & cargo vans ready for consignment and/or same day delivery. We also specialize in unique delivery situations. Call for more info 216.409.3956 440.781.1520 Selling individual games/20 seats plus 4 parking passes per game. (let us do the driving for you) CAVS TICKETS FOR SALE E-MAIL US YOUR AD FULL OR HALF SEASON SECTION 108 ROW 2 SECTION 110 ROW 9 GREAT SEATS! EMAIL: [email protected] Dschwaller@ crain.com If interested, contact Cindy at (216) 621-5351. GO BROWNS! CCLB 09-29-08 A 29 CCLB 9/25/2008 1:36 PM Page 1 SEPTEMBER 29-OCTOBER 5, 2008 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM 29 REAL ESTATE CLASSIFIED LUXURY PROPERTIES PUBLIC NOTICE Crain’s Cleveland Business can now SHOW your available property on-line. (216) 249-2021 www.chestnuthillrealtyinc.com Presents a Showcase of Fine Homes AVON LAKE - Designed with a contemporary flair. Glassed 2-story living room, floor-to-ceiling stone fireplace and views of Sweetbriar Golf Club. Gourmet designer kitchen includes opening to an arbored patio. Master suite has French terrace and glamour bath with custom stone steam shower. Also a fitness center and endless lap pool. HUNTING VALLEY - Located in the heart of the land conservancy. A 1929 custom designed English manor home with special features including a formal fire lit reception hall, paneled and firelit His/ Hers libraries and lovely gardens. The master suite has his / her baths. Crain’s Cleveland Business’ has recently updated our on-line classified section to now include logos, photos and hot-links. HUNTING VALLEY - A once in a lifetime opportunity. On 17 lush acres bordered by Luce Creek. Designed as a classic center hall with formal rooms radiating from a grand reception foyer. Included is a fully equipped guest cottage, inground pool, tennis and multi-car garage with 2 separate attached carriage houses. To Advertise your Luxury Property contact Don Schwaller at (216) 771-5172 MORELAND HILLS - French country Normandy designed colonial overlooking private wooded views. Enjoy indoor swimming, fitness and designer kitchen. Fire lit formal dining opens to tiered deck with gazebo and skylit family room. In-law or AuPere suite. “BY OWNER ” Pepper Pike -- One of the most spectacular, adult contemporaries on one of the most spectacular private settings imaginable. "A secluded, Nature Lovers Lifestyle" • Designed by SanDiego architect Tony Crisafi * 1st floor Master Suite with Private Deck / Porch * 2 other Master Sized Bedrooms, in suite Spa Baths/Porches * 2 additional rooms, now serve as office / bedrooms NOTICE TO VENDORS Notice is hereby given that sealed proposals will be received in the Board of County Commissioners Office of Procurement & Diversity, Room 100, County Administration Building Annex, 112 Hamilton Court, Cleveland, Ohio 44114 until 11:00 A.M. local time on October 30, 2008 for lease of office space for a Juvenile Court Regional Probation Office for the period July 1, 2009 through June 30, 2014 per RQ 11954. Required geographic location: The space must be in an area bounded by: Option “A” - Supervision Unit and Option “C” - Mega Unit North: Superior - Mayfield Rd. South: Woodland - Shaker Blvd. East: Warrensville Center West: East 79th Option “B” - Investigation Unit North: Rt. 90 South: Miles East: Richmond West: East 55th The official closing time shall be determined by the wall clock located in the Office of Procurement & Diversity. (SAME ADDRESS) Late proposals will be returned unopened. There will be a Pre-proposal Conference on October 8, 2008 at 10:00 A.M. at the Department of Central Services, 2nd floor conference room, 1642 Lakeside Avenue, Cleveland, OH 44114. IT IS STRONGLY RECOMMENDED THAT INTERESTED VENDORS ATTEND. Specifications and proposal blanks may be obtained at the Board of County Comissioners Office of Procurement & Diversity. (SAME ADDRESS) Questions may be addressed to Mr. John Myers, Real Estate Manager at 216-698-2517 Payment will only be made upon approval of the Board of County Commissioners and payments will be warrants issued by the County Auditor upon notification from the Commissioners. The Board of County Commissioners reserves the right to accept or reject any proposals or any part or all parts of any proposal submitted, and waive all technicalities. Each proposal must state in full the name and address of each person, firm or corporation interested in the proposal submitted. BY ORDER OF THE BOARD OF COUNTY COMMISSIONERS OF CUYAHOGA COUNTY JIMMY DIMORA TIMOTHY F. HAGAN PETER LAWSON JONES LENORA M. LOCKETT, DIRECTOR Office of Procurement & Diversity PERSONAL SERVICES BUT WHAT IS HAPPINESS EXCEPT THE SIMPLE HARMONY BETWEEN A MAN AND THE LIFE HE LEADS? (total of 3-5 5 bedrooms, 5 full baths) * Timeless choices of Materials and Fixtures * Concealed "touch latch" storage EVERYWHERE! * Sophisticated applications of Florescent & Halogen lighting augments tons of Natural Light throughout. Real Estate Auction Sun. Oct.19 @ 2:00pm 2900 Fairmount Blvd. Cleveland Hts. Pre approved buyers please make inquiries to 216/509-5 5656 Priced firm @ 875,000 LUXURY PROPERTY FOR SALE List your high-end real estate here for great high-end exposure. One of the most magnificent houses in the city on 1.2acrs. 3 stories, 9,025 sq.ft., library, ball room, 10 Bdr, 6 bth, 2 half bth, 4 fireplaces, in-ground pool, 4 car garage, and much more... Built in 1991 Discount rates available. 24 HOUR RECORDED INFO 1-800-991-9243 ext. 3015 www.ThomasMichaelAuctions.com Call Don Schwaller at (216) 771-5172 for more info Thomas Seaman, Auctioneer *10% Buyer premium add-on applies - Albert Camus Do you wish you had more harmony in your life, your relationships or your career? Find out how individual or couples counceling can help you to maximize your potential, increase your satisfaction and cope with difficult adjustments. KARSTEN SIEBERT, M.ED. PROFESSIONAL COUNSELOR Heinlen, Hanson & Siebert 440-333-2106 [email protected] Convenient Rocky River location. Evening and weekend appointments available. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> CLASSIFIED CONTINUED ON PAGE 30 CCLB 09-29-08 A 30 CCLB 30 9/26/2008 1:56 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 29-OCTOBER 5, 2008 City View: Other tenants’ future plans concern some officials continued from PAGE 1 they have indicated that if their concerns are met, they’re willing to reopen the store. We believe that we’ll be able to meet those concerns and that they’ll reopen the store.” Citing a report by an independent contractor it hired to evaluate the City View site, Wal-Mart announced the closure Sept. 15. It declared at that time that methane gas levels, structural shifts and foundation, electrical and sewage problems created what Wal-Mart spokeswoman Tara Stewart called a “volatile mix of potential safety hazards.” City View’s methane-related troubles are well-documented and arise from construction of the 740,000-square-foot shopping center on a former landfill. But whether its problems are as severe as Wal-Mart portrays is open to question. Ohio Environmental Protection Agency director Chris Korleski said in a strongly worded Sept. 3 letter to City View owners that he would consider shutting down the shopping center if the owners lapsed in their methane monitoring and mitigation. However, agency spokesman Mike Settles insisted in an interview last Thursday, Sept. 25, that the EPA feels “City View can be operated in a safe manner if the responsible parties monitor for methane and mitigate when necessary.” “We still hold that position, and frankly, we wish Wal-Mart had talked to us prior to making their decision,” Mr. Settles told Crain’s. The portion of City View that includes the Wal-Mart space belongs to City View Center LLC, formed by New York grocer Thomas Klein, who bought it from McGill Property Group in late 2006. Mr. Klein did not return a message left seeking comment. Mr. Markowitz, the attorney, said Wal-Mart jumped the gun in leaving City View, but that other tenants aren’t panicking. “They’re all staying on top of what’s going on, but there’s no need for anybody to take any other action right now,” he said. “There are a lot of issues there, and we’re working through them. Both City View as well as my client and the EPA believe we’re going to get it settled.” Spokeswoman not encouraging Ms. Stewart, Wal-Mart’s regional director of media relations, said last Thursday that the company’s City View lease runs through 2015, though she couldn’t say whether the big retailer is trying to negotiate an early termination. “We are currently in discussions and are still evaluating all available options with regard to the lease,” she said. Though Ms. Stewart noted that Wal-Mart in its Sept. 15 announce- ment described the closing as indefinite as opposed to permanent, she didn’t indicate in the interview last Thursday that the retailer is seriously considering reversing its decision. “If I was asked ‘Are you going to reopen the store?’ I’m told that no, it doesn’t look likely,” Ms. Stewart said. “If something can happen and everything gets fixed, then maybe we’ll take another look at the situation. Our initial response was that we didn’t think those issues we were concerned about could be fixed.” Wal-Mart is moving the City View store’s merchandise to other stores in the region, though its fixtures and shelving will stay in place for now. Ms. Stewart said the 171 employees of the City View Wal-Mart have all been placed in jobs at other locations. Garfield Heights building commissioner William Wervey said he was “flabbergasted” upon hearing news of the closing, especially because of the structural problems that were cited by Wal-Mart. “We had heard rumors of floors sinking and breaking and this and that, and I walked basically the whole building,” Mr. Wervey said. “I looked around where pillars dig into the floor, into the pile blocks, into the foundation. I didn’t see anything other than the fine cracks you see in concrete floors. There’s some settlement of the parking lot paving and the driveway paving behind the building, but that’s been going on continuously since it was built, and it was expected.” Image problems Garfield Heights Mayor Thomas Longo says he’s concerned about the impact of Wal-Mart’s closure on City View’s remaining tenants and on the shopping center’s image. “There’s a perception problem that’s been perpetuated by WalMart that the center is unsafe,” Mayor Longo said. “That’s a perception that we are going to be working with the owners and the developer on trying to remedy.” Wal-Mart’s move also raises questions concerning the commitment of other City View tenants because many shopping center leases include co-tenancy clauses that allow smaller tenants to break or renegotiate their leases if a traffic-drawing anchor store closes. Mayor Longo calls co-tenancy fallout something to worry about and says he’s heard rumblings that some City View tenants have such clauses, though he admits he knows no specifics about the leases. The parent corporations of several City View tenants declined to comment on the situation at City View or to reveal whether WalMart’s closing affects their leases. Pittsburgh-based Giant Eagle spokesman Dan Donovan responded to questions with a statement asserting that its supermarket at City View “has not experienced any structural or methane gas-related issues that would cause an unsafe environment.” “Both the EPA and Garfield Heights officials have assured us that our building and the shopping center are safe,” Mr. Donovan said. “As an added measure of safety, Giant Eagle has a methane gas monitoring system which has not indicated any unsafe conditions.” Though the Ohio EPA is backing a civil suit filed by the Ohio attorney general’s office against City View owners over a recent lack of proper methane monitoring, the agency is negotiating a possible settlement before the Dec. 8 trial date. City View’s current system involves checking methane levels daily and dissipating the flammable gas with blowers. “The developers and property managers in the last few weeks … have been doing a good job staying on top of the situation out there,” said the Ohio EPA’s Mr. Settles. “The main thing we’re looking for is to get an active gas extraction system out there that would permanently take care of this methane migration issue. Whether there’s a financial penalty with that is something I’m sure they’re discussing, too.” ■ CLASSIFIED FINANCIAL SERVICES Crain’s Executive Recruiter CAPITAL AVAILABLE If you have an opportunity that requires funding but does not fit traditional banking parameters - contact us. We do not fund senior/mezzanine debt or working capital. We focus on special situations with investment size ranging from $500k to $10 million. Total committed capital of $100 million. We have an in-house legal team, can think "outside of the box" and act quickly. Please refer to www.etccapital.com or call 248560-0203 ext. 101 for more information. WANTED: Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-888-909-9111 or on-line @ CrainsCleveland.com Click on “Subscribe Now.” You could be making $$$ if your ad was here To get a quote, go to www.CrainsCleveland.com/RequestAQuote FAST-TRACK, GROWTH CPA FIRM Pease & Associates is searching for experienced accounting professionals to join our rapidly growing firm. We are a reputable firm offering a positive family-oriented culture,” work-hard, play-hard” team environment, encouragement of creativity and development of new ideas. If you have an entrepreneurial spirit, want to make a difference, are dedicated to providing excellent client service and are seeking a firm offering potential for ownership, Pease is an excellent choice. We currently have openings for: • Manager of Assurance Services - a CPA with 5-7 years of public accounting and auditing experience with very strong technical skills and emphasis in the audit area, including all auditing functions, review procedures and financial statement preparation • Tax Manager - a CPA with 5-7 years of public accounting and tax experience with very strong technical skills and emphasis in the tax area, including the ability to apply creative ideas to enhance client development and growth Our core team of members has been together and providing professional services for more than twenty years. We are committed to delivering the quality service of a regional firm with the personalized touch of a local business. For confidential consideration, please send your resume to [email protected]. PEASE & ASSOCIATES, INC. CERTIFIED PUBLIC ACCOUNTANTS To place your Crain’s Cleveland Business Executive Recruiter ad Call Don Schwaller at 216-771-5172 ___ Where to find your professional! Confidential box numbers available @ $35 per ad. ___ Crain’s Cleveland Business On-line Executive Recruiter gives more! Audit, Tax and Business Consulting Services 1422 Euclid Avenue/Suite 801 Cleveland, Ohio 44115 Telephone: 216.348.9600 Fax: 216.348.9610 www.peasecpa.com We have recently updated our on-line classified section to now include logos and hot-links for e-mail and websites. CCLB 09-29-08 A 31 CCLB 9/26/2008 4:57 PM SEPTEMBER 29-OCTOBER 5, 2008 Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM 31 THEINSIDER THEWEEK SEPTEMBER 22 - 28 The big story: Snap-on Business Solutions Inc. plans to build a 105,000-square-foot headquarters in Richfield on 8.5 acres across from the company’s current home in Kinross Lakes Office Park. The subsidiary of tool maker Snap-on Inc. has employees at its Wooster location who will move into the new headquarters, which then will have more than 300 employees. The company’s current Richfield HQ is 85,000 square feet. Snap-on Business Solutions provides electronic parts catalogs for the auto and powersports industries. Talking taxes: The city of Cleveland and the Greater Cleveland Partnership have begun to talk about how the income taxes assessed by Cleveland and other communities in the region stack up against each other. Cleveland Mayor Frank Jackson said he’s responding to inquiries from Eaton Corp. and other companies that would like Ohio cities to exclude certain deferred compensation from Jackson city income tax calculations. He said creating an exemption for the deferred income could cost the city up to $4 million a year. “Why would I just give up millions of dollars with no benefit to the city?” the mayor asked during an interview with Crain’s. Pumping up JumpStart: JumpStart Inc. will receive the biggest grant that the Burton D. Morgan Foundation has ever given to a program that doesn’t involve construction. The Hudsonbased foundation announced it would give the Cleveland business development organization a grant that could reach $3 million if JumpStart finds another $3 million to match it. JumpStart can use the money to help pay for the assistance services it provides to high-tech companies or to add to its nonprofit investment fund. REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS The ol’ Nigerian e-mail scam, with a U.S. twist ■ In the midst of the Bush administration’s push last week for a $700 billion bailout package for the financial industry, the following e-mail arrived in the Crain’s newsroom. It’s a send-up of the phony e-mail solicitations, allegedly from an official of the Nigerian government, that try to convince recipients to share their bank account information so that an urgent transfer of funds can be made into their accounts. Only this time, the sender is U.S. Treasury Secretary Henry Paulson. Enjoy. Dear American: I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude. I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you. I am working with Mr. Phil Gram [sic], lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe. This is a matter of great urgency. We need a blank check. We need the funds as quickly as Grass-roots thoughts on the big bailout WHAT’S NEW STOCKS Quick on the draw: Goodyear Tire & Rubber Co. of Akron said it plans to draw $600 million from its U.S. revolving credit facility due to what it termed “a temporary delay” in its ability to access $360 million of cash currently invested with The Reserve Primary Fund. The Reserve Primary Fund, a troubled money market fund, has delayed the payment of requested redemptions pursuant to a Securities and Exchange Commission order allowing an orderly disposition of its securities. To keep up with local business news as it happens, visit www.CrainsCleveland.com. ■ If you’d expect Cleveland City Councilman Tony Brancatelli, whose Ward 12 includes foreclosure-riddled Slavic Village, to embrace the Bush administration’s $700 billion mortgage bailout bill, you would be wrong. “This feels like we’re negotiating with terrorists to release hostages,” Mr. Brancatelli said. The councilman said he opposes a direct bailout for banks and holders of busted mortgages, although he would support different measures. Better, he said, would be provisions to keep people in their houses or require lenders to surrender the assets to local authorities in exchange for federal tax credits. The idea of a large federal organization or contractor disposing of the loans and properties makes Mr. Brancatelli shudder because of his experience with the U.S. Department of Housing and Urban Development and federally owned houses in his ward. The houses are a shambles, and it takes a long time to get them sold, which means they’re in even worse shape before they’re in line for a real fix-up. “I’d rather be in position where I could be in control,” he said. — Stan Bullard Another medical mart that’s slow to materialize ■ The competition to Cleveland’s medical merchandise mart has added an influential partner. The Greater New York Hospital Association has agreed to be an anchor tenant and joint venture partner for what is called the World Product Centre, a 60-story midtown Manhattan skyscraper touted as a year-round showroom and conference center for companies that supply medical devices and services. Modern Healthcare, a hospital industry trade journal and sister publication of Crain’s Cleveland Business, wrote about the agreement in its Sept. 1 issue. The project was first announced in August 2007 by developer Israel Green with a 2012 completion date. However, Modern Healthcare notes that besides the commitment from the hospital association, which has 300 hospital members in the region, the developer has no other tenants and no financing lined up.— Jay Miller 10 BEST PERFORMERS Instrumental cuts: Keithley Instruments Inc. announced staff cuts designed to improve the Solon company’s bottom line. The maker of sophisticated measurement instruments has reduced its global work force by about 5%, which includes recent attrition. Keithley did not say how many jobs have been eliminated. Keithley said its actions are expected to reduce operating expenses by about 7%. possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred. Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to [email protected] so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds. — Yours Faithfully Minister of Treasury Paulson COMPANY: Wright Tool, Barberton PRODUCT: Wide-opening adjustable wrench Open wide. That’s the motto behind Wright Tool’s new line of adjustable wrenches. The company says an extra-wide jaw opening is standard on lengths 6 inches to 12 inches to accommodate bigger nuts and bolts. The new jaw design “provides a better grip, which avoids slippage or nut round off, while its creep feed ground parallel face assures smooth, tight operation,” according to the company. Wright Tool also says the jaw is longer and thinner, increasing the performance of the wrench. For information, go to www.wrighttool.com. Send new product information to managing editor Scott Suttell at [email protected]. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. COMPANY CLOSE 9/26 WEEK’S % CHANGE 52-WK HIGH 52-WK LOW DataTrak International (DATA) Invacare Corp. (IVC) Steris Corp. (STE) Hawk Corp. (HWK) U-Store-It Trust (YSI) FirstEnergy Corp. (FE) Progressive Corp. (PGR) KeyCorp (KEY) Sifco Industries Inc. (SIF) Diebold Inc. (DBD) 0.28 25.77 38.38 21.13 12.50 68.64 17.35 14.70 8.50 33.77 12.00 2.14 1.37 0.62 0.16 -0.42 -1.14 -1.21 -1.28 -1.46 3.47 27.75 38.93 25.63 14.40 84.00 21.31 34.05 23.25 45.90 0.20 16.13 20.71 13.25 7.56 63.03 15.00 7.93 8.37 23.07 COMPANY CLOSE 9/26 WEEK’S % CHANGE 52-WK HIGH 52-WK LOW National City Corp. (NCC) Chart Industries Inc. (GTLS) Omnova Solutions Inc. (OMN) Brush Engineered Materials (BW) Cleveland-Cliffs Inc. (CLF) Eaton Corp. (ETN) FirstMerit Corp. (FMER) OM Group Inc. (OMG) LNB Bancorp Inc. (LNBB) Jo-Ann Stores Inc. (JAS) 3.71 27.99 2.17 19.76 59.89 58.06 21.91 24.74 7.20 22.49 -33.87 -32.81 -26.44 -23.02 -21.61 -16.26 -15.73 -13.56 -13.20 -12.73 27.21 55.73 5.91 58.74 121.95 101.82 28.79 66.00 15.44 26.85 2.00 21.84 1.83 19.07 36.75 56.21 13.76 23.98 7.12 9.03 10 WEAKEST PERFORMERS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Source: FinancialContent Inc. Open House Weatherhead School of Management October 11, 2008 8:30 a.m.–11:30 a.m. weatherhead.case.edu CCLB 09-29-08 A 32 CCLB 9/25/2008 1:37 PM Page 1 Two Extraordinary Vehicles. Two Extraordinary Opportunities. BMW 2008 M3 SEDAN 2008 M3 CONVERTIBLE 2008 M5 SEDAN SIGN & DRIVE! bmwusa.com 1-800-334-4BMW The Ultimate Driving Machine® The BMW M M. The most powerful letter in the world. The 2008 Range Rover Sport HSE. The ultimate combination of athleticism, utility and luxury, it is the rare vehicle that both stirs the senses and inspires envious stares. 799 LEASES STARTING AT $ * 39 MOS. The 2008 Land Rover LR2. Spirited and athletic, it’s a true Land Rover from the ground up redefining a new standard in responsive handling, expert control and agility. 499 LEASES STARTING AT $ ** 48 MOS. 2008 M5 Sedan 2008 M3 Sedan 2008 M3 Convertible Complimentary Scheduled Maintenance Included! 4 Years/50,000 Miles! LAND ROVER SOLON 0.9% APR 2008 M3 Convertible, M3 Sedan and M5 Sedan now through October 31 6137 KRUSE DR.• SOLON • 1-866-210-6707 www.landroversolon.com * Range Rover Sport HSE: 39 month lease. $0 down payment. MSRP $59,000. Tax, title and registration fees extra. 12,000 miles per year. 20¢ per mile over. ** LR2: 48 month lease. $0 down payment. MSRP $36,150. Tax, title and registration fees extra. 12,000 miles per year. 20¢ per mile over. Customer responsible for excess wear and tear. Other Range Rover Sport HSE and LR2s available at similar savings. Expires 9/30/08. BMW Ultimate Service™ Pay nothing. 4 years/50,000 miles. The most comprehensive maintenance plan (including wear and tear items) in its class.** Brake Pads: $0 Brake Rotors: $0 Engine Belts: $0 Oil Changes: $0 Wiper Blade Inserts: $0 Scheduled Inspection: $0 BMW CLEVELAND • 6135 KRUSE DR. • SOLON • 1-866-210-6710 www.BMWCleveland.com DESIGNED FOR THE EXTRAORDINARY Qualified customers only. Available at participating BMW centers through BMW Financial Services NA, LLC. Applies only to specific models and only for specific model years. 0.9% APR available through 10/31/2008. Subject to credit approval. See participating BMW center for details and vehicle availability. ALL NEW 2009 JAGUAR A Competitive Lease for the Sports Sedan With No Competition. Y!CE R R HAN U HAST C L SPECIAL LEASE AND FINANCE OPPORTUNITIES ON EVERY REMAINING 2008 QUATTROPORTE Motor Trend has called it “the world’s most exclusive sports sedan,” and went on to crown it the winner of a comparison test over models from Germany, England and Japan. evo magazine declared it to be “the best handling super-sedan on the planet.” It’s the only sedan in the world with a Ferrari-engineered 400 hp V8 engine, supercar braking, and a rearward weight bias. Only one sedan can be the best — the 2008 Quattroporte. And, now through September 30, all of the Quattroporte’s world-beating performance, style and exclusivity can be yours for as little as $1,699 per month. Drive a winner. Visit your local authorized Maserati dealer today to learn why the Quattroporte is the ultimate performance sedan. maseratiamerica. com/lease NOW THROUGH 9/30/08 $1,699 Well Equipped at MSRP $50,775 * Lease $ For 36 69964* Mos. ON A NEW 2008 QUATTROPORTE 42-MONTH LEASE / 10,000 MILES PER YEAR $5,993.96 DUE AT LEASE SIGNING JAGUAR CLEVELAND *ONAPPROVEDCREDIT.AvailableonlyatparticipatingauthorizedMaseratiDealersthroughSeptember30,2008toqualifiedlesseeswithapprovedcreditthroughMaseratiFinancialServices.DeliverybySeptember30,2008required.Subjecttoavailability,quantitiesarelimited.Requireddealercontributioncouldaffectprice.Dealerpriceswillvary andaffectlesseecost.ActualleasepricedeterminedbyyourauthorizedMaseratiDealer. Paymentswillalsovarybasedonlengthofleaseandoptionsselected.Paymentshownbasedona42-monthclosed-endleaseforanew2008modelyearQuattroporteAutomaticwithMSRPof$126,325.00.Totalcashdueatsigningis$5,993.96,including capitalizedcostreductionof$3,100.00,firstmonth’spaymentof$1,699.00,$300platefeeand$895.00acquisitionfee.Nosecuritydepositrequired.Totalamountofmonthlypaymentsis$71,358.00.Purchaseoptionatleaseendfor$52,288.25plustaxes.Lesseeisresponsibleforinsurance,maintenance,repairs,$.60permileover10,000miles peryear,excesswearanda$495.00terminationfee.Title,taxes,registrationanddealerfeesareextra.SeeyourparticipatinglocalauthorizedMaseratiDealerfordetails.©2008MaseratiNorthAmerica.Allrightsreserved.MaseratiandtheTridentlogoareregisteredtrademarksofMaseratiSpA.Maseratiurgesyoutoobeyallpostedspeedlimits. 6137 KRUSE DR., SOLON • (440) 542-0601 MASERATI OF CLEVELAND 6137 KRUSE DR. • SOLON • 1-866-210-6707 www.maseratiofcleveland.com www.jaguarcleveland.com * 36 month lease. Total due at signing $4,694.64 includes 1st payment, $3,995 in Cap reduction. Tax, title and registration fees extra. With approved credit. Customer responsible for excess wear and tear. 12,000 miles per year. 18¢ per mile over. Others available at similar savings. Picture for illustration purpose only. Stock # J01717. Expires 9/30/08. davis automotive group inc. 6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com S17F_QP_24x36.indd 1 9/17/08 9:11:07 AM
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