CCLB 11-10-08 A 1 CCLB11/7/20084:36 PMPage 1 1.50/NOVEMBER 10 - 16, 2008Manufacturer fears intensifyUncertain future creates chilling effect on expansion and investment plansINSIDE: A look at a study done by John Carroll University’s Brad Hull for theInstitute for Supply Management and Purchasing Managers Index. Page 26By DAN [email protected] nation’s manufacturingsector is experiencing its worstslump in a quarter century, and thespecter of an even more severedownturn is scary enough that it’scausing many local manufacturersto curtail plans for expansion andcapital investments.“Some people are not able toexpand the way they would like to,and that hurts all of us,” said DavidFouts, president and CEO of theCleveland-based ManufacturingAdvocacy and Growth Network, orMagnet. “People who are likely toexpand are either in newer industries, such as wind power, or theyexport a lot — and those are theareas we’d like to keep going.”Mr. Fouts said companies he workswith are putting off expansion plansbecause they can’t obtain the creditthey need, are fearful of furthereconomic slowing, or both.Some of the area’s larger publiclytraded manufacturers say they’re cutting back on their capital spendingplans specifically to brace for a slowdown in the months ahead — evenwhen their financial results have beenpositive through September.For instance, Hawk Corp., a Cleveland-based supplier of friction materials used to make brakes, clutches andtransmissions, said last week it expectsto spend 16 million to 18 million oncapital expenditures through the endof 2008, down from its previous estimate of 20 million. The companyannounced that news, the result of“uncertainty in today’s economicclimate,” even as it reported that saleswere up 44% in the third quarter.Similarly, polymer materialsIconic yardon the outsJANINEBENTIVEGNAWest End Lumberis consolidating itsWest 73rd Streetyard, open since1896, into its largeroperations at West130th Street inCleveland.West End is oneof the few independent outfits left inthe city. Page 12FOUNDATIONS’FUNDS FALLINGRetailers’post-holidayexits earlythis yearAs economy’s ill winds dramatically shrinkendowments, nonprofit leaders fear furthergrant declines, greater competitionIndustry watchers citeglut of space likelyavailable early in ’09See FUTURE Page 26By STAN [email protected] SHANNON [email protected] some retailers, call it a rush forthe exits.That is how Keith Hamulak, aspecialist in retail leasing at the Cleveland office of broker CB Richard Ellis,sees the unusual phenomenon of aherd of retailers announcing plans toclose before the big holiday shoppingseason. Such closings usually waituntil after the holidays in order tocapture some post-holiday bargainhunting business.“A lot of retailers feel a lot of retailspace is going to go onto the marketfrom January through March, so theywanted to beat the others to themarket,” Mr. Hamulak said.To prove his point, he cites LinensN-Things, which initially planned toclose three stores here as part of aplan to trim 57 stores nationally. Butcreditors in the Clifton, N.J., retailer’sbankruptcy proceedings persuadedthe Bankrupty Court it was better topull the plug on the entire chain. Thatdecision added the Mentor and Avonstores to a 411-store “going out ofbusiness” sale.Ironically, beating other retailers tomarket would be a good rationale if alot of retailers were looking to expand.As the financial markets continue on their roller-coasterride, local foundationsare mourning significantdeclines in their assets and are warningof a more competitive market forgrants in the coming years.Like many individuals with investment portfolios, foundations acrossOhio also haven’t weathered thefinancial storm well, said GeorgeEspy, president of the Ohio Grantmakers Forum, which represents philanthropic organizations in Ohio.“It appears assets are down anywherefrom 15% to 40%,” Mr. Espy said.“Those decreased assets will impactfoundations’ ability to make grants.There will be less money available.”See FOUNDATIONS Page 25KRISTEN WILSON ILLUSTRATION45INSIDESee RETAIL Page 80NEWSPAPER71486 010326SPECIAL SECTIONSMALL BUSINESSMany Ohio natives are gaining experience out ofstate, then applying it at home Page 19PLUS: GRAND OPENINGS TAX TIPS & MOREEntire contents 2008by Crain Communications Inc.Vol. 29, No. 45
CCLB 11-10-08 A 2 CCLB211/7/200812:02 PMPage 1CRAIN’S CLEVELAND BUSINESSCOMINGNEXT WEEKWWW.CRAINSCLEVELAND.COMNOVEMBER 10-16, 2008UNMISTAKEABLE TRENDSYou probably don’t need any statistics to know that Ohio’s economy is struggling mightily. But the Ohio Department of Job andFamily Services crunches numbers every month, and the department’s Leading Indicators data for September aren’t pretty inthe Cleveland Metropolitan Statistical Area, including Cuyahoga, Geauga, Lake, Lorain and Medina counties:Leading economic indicators, September 2008 vs. September 2007Sept. 2007Sept. 2008% change1.068M1.061M-0.7%6,36712,25992.542.940.8-4.9 60.9M 48.2M-20.9Nonagricultural wage and salary employmentWe’ve again gathered 40 ofNortheast Ohio’s most influential people under the age of40, turning the spotlight ontheir contributions that makethe region shine. Study up ontheir accomplishments andgoals for Northeast Ohio inour annual section.Initial claims for unemployment insuranceAverage weekly hours for manufacturing workersValuation of housing permitsSOURCE: OHIO DEPARTMENT OF JOB AND FAMILY SERVICES, BUREAU OF LABOR MARKET INFORMATIONREGULAR FEATURESClassified .24-25Editorial.10Going Places .18Personal View .10Reporters’ Notebook .27Stocks .27700 W. St. Clair Ave., Suite 310,Cleveland, OH 44113-1230Phone: (216) 522-1383Fax: (216) 694-4264www.crainscleveland.comPublisher/editorial director:Brian D. Tucker ([email protected])Editor:Mark Dodosh ([email protected])Managing editor:Scott Suttell ([email protected])Sections editor:Amy Ann Stoessel ([email protected])Senior reporter:Stan Bullard ([email protected])Reporters:Shannon Mortland ([email protected])Jay MIller ([email protected])John Booth ([email protected])Chuck Soder ([email protected])Dan Shingler ([email protected])Arielle Kass ([email protected])Designers/reporters:Joel Hammond ([email protected])Kathy Carr ([email protected])Research editor:Deborah W. Hillyer ([email protected])Editorial researcher:Kim Ratliff-Null ([email protected])Cartoonist/illustrator: Rich WilliamsOnline editor:Jeff Stacklin ([email protected])Marketing/Events manager:Christian Hendricks ([email protected])Marketing coordinator:Laura Franks ([email protected])Weatherhead Schoolof Management’sAdvertising sales director:Mike Malley ([email protected])Account executives:Adam Mandell ([email protected])Art Bouhall Jr. ([email protected])Andrea Rubin ([email protected])Dirk Kruger ([email protected])Nicole Nolan ([email protected])Gena Page ([email protected])Classified advertising manager:Don Schwaller ([email protected])Office coordinator:Toni Coleman ([email protected])Western accounts manager:Ellen Mazen, 323-370-2477([email protected])Production manager:Craig L. Mackey ([email protected])Production assistant/video editor:Steven Bennett ([email protected])Graphic designer:Kristen Wilson ([email protected])Receptionist:Jodi Stirtmire ([email protected])Billing:Susan Jaranowski, 313-446-6024([email protected])Credit:Todd Masura, 313-446-6097([email protected])Circulation manager:Erin Miller ([email protected])Customer service manager:Brenda Johnson-Brantley ([email protected] crain.com)Crain Communications Inc.David A. BowersEconomic ForecastLuncheon2009 Economic Outlookby Dr. Sam Thomas, Ph.D.Friday, December 5th at 11:30 a.m. at The Marriott at Key CenterRegister by November 28th at weatherhead.case.edu or 866.678.6221Sponsored by:Keith E. Crain: ChairmanRance Crain: PresidentMerrilee Crain: SecretaryMary Kay Crain: TreasurerWilliam A. Morrow:Executive vice president/operationsBrian D. Tucker: Vice presidentRobert C. Adams:Group vice presidenttechnology, circulation, manufacturingPaul Dalpiaz: Chief Information OfficerDave Kamis:Vice president/production & manufacturingPatrick Sheposh:Corporate circulation directorG.D. Crain Jr.Founder (1885-1973)Mrs. G.D. Crain Jr.Chairman (1911-1996)Subscriptions: In Ohio: 1 year, 59; 2 years, 102.Outside of Ohio: 1 year, 102; 2 years, 180. Singlecopy, 1.50. Allow 4 weeks for change of address.Send all subscription correspondence to Circulation Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-888-909-9111or FAX (313) 446-6777.Reprints: Call 1-800-290-5460 Ext. 136Audit Bureauof Circulation
CCLB 11-10-08 A 3 CCLB11/7/20084:14 PMPage 1NOVEMBER 10-16, 2008CRAIN’S CLEVELAND BUSINESSWWW.CRAINSCLEVELAND.COM3Nat City transition begins sans RaskindCEO could have been advocate in PNCmerger; nonetheless, deal quietly proceedsBy ARIELLE [email protected] National City Corp. intoPittsburgh’s PNC Financial ServicesGroup Inc. won’t be a quick process.But just more than a week after thedeal was announced — and twomonths before it’s expected to close— those plans are starting to takeshape.In a letter last Monday, Nov. 3, toemployees of both banks, NationalCity CEO Peter Raskind and PNCCEO Jim Rohr said they are “beginning to lay the groundwork” for thetransition to a single company.Four executives — two from eachbank — have been named to lead thetransition. At PNC, they are chiefadministrative officer Tom Whitfordand global investment servicingchairman Tim Shack. National Citywill be represented by Shelley J.Seifert, the head of corporate services,and Jon Gorney, head of corporateoperations and information systems.Because Mr. Raskind also announced last Monday that he will notcontinue on with the merged bank —contrary to previous plans for him toassume the post of vice chairman —Ms. Seifert and Mr. Gorney likely willhave outsized influence in ensuringthat National City’s people and interests are represented in the merger.“The National City folks have toview that as a disappointment,” saidBrian Koble, a senior research analystat Hefren-Tillotson in Pittsburgh, inreferring to Mr. Raskind’s decision toretire. “There would have been a bigYOUNGOR OLD,IT HURTSSee BANK Page 6Renovation boostsmarket positionEconomic crisis impactsgenerations differentlyBy SHANNON [email protected] ARIELLE [email protected] at the table for (Mr. Raskind)representing National City employees.”Mergers undoubtedly include a lotof arguing, infighting and compromise, Mr. Koble said, as departmentsare thinned out or eliminated entirely.He said Mr. Raskind would have beenan effective voice for the bank.Art museumexpansionopens upnew doorsINSIGHTt’s only been a few months sinceCorrine Bell and Cheryl Oberentered retirement.Maybe not the best timing —or the best of times.Ms. Bell and Ms. Ober are watchingtheir savings drop, contemplating theirreturn to the work force, and adjustingtheir spending habits at a time theythought they would be traveling andenjoying life.Still, Ms. Bell — who retired fromthe Equal Employment OpportunityCommission in August at age 58 —doesn’t regret her decision to stopworking, despite the economic turmoil. She had already worked twoyears longer than she needed, shesaid, and doesn’t plan to dip intoanything she has saved in the stockmarket for 10 years or more.But it’s only been a couple months.INSIDE: Relaxed IRS, TreasuryDepartment rules may net PNC billionsof dollars in tax relief. Page 6JANINE BENTIVEGNAABOVE: Shane Culey, 28, said his 401(k) has taken quite a hit, but he is not overly concerned. He hasscaled back expenses in the meantime. BELOW: Corrine Bell, 58, retired from the Equal EmploymentOpportunity Commission recently, but said her plans to travel are on hold because of the economy.See ECONOMY’S Page 15RUGGERO FATICAHeidi Strean expects the Cleveland Museum of Art finally to be ableto run with the big dogs of the artmuseum world.The museum has opened the first ofits new space in the first floor of theeast wing. With 14,000 square feet ofexhibition space on the first floor andthe 24,110-square-foot second floor toopen next June, the museum will beable to create and host bigger shows.The new exhibition halls are part of themuseum’s overall 258 million renovation and expansion project.The new space could enable themuseum to steal market share awayfrom art museums in Chicago andother cities and to boost its ownmembership, said Ms. Strean, themuseum’s director of exhibitions.“Does this allow us to have a different caliber of show? Yes,” she said.“This is really an exhibition hall whereyou can make something very grand.”To drive the point home, the museumhas opened the first floor of the eastwing with the elaborate exhibit“Artistic Luxury: Faberge, Tiffany,Lalique.” The exhibit showcases jewelry and other items designed by thoseartists in the early 20th century.The size of the space allowed the artmuseum to spread out the cases inwhich the pieces are located and toincorporate in the exhibit the tall ceilings, decorative columns and tapestries that were popular in the early 20thcentury. The museum created a boothSee ART Page 25FORTHERECORDARTERIOCYTE RECEIVESDEFENSE AGENCY DOLLARS Arteriocyte Inc. of Cleveland, acreator of medical products, has beenawarded nearly 2 million from theDefense Advanced Research ProjectsAgency to develop further a systemaimed at mass producing red bloodcells that would be used for transfusions on the battlefield. The system,called Nanex, uses a nanofiber-basedstructure that mimics bone marrow inwhich blood cells from umbilical cordscould multiply, said CEO Don Brown.The company has hired two at its Cleveland headquarters because of theaward and will probably add more, Mr.Brown said. — Chuck SoderCLINIC TO RUN WOMEN’SHEALTH FOUNDATION The Cleveland Clinic is taking overthe operations of the National Speaking of Women’s Health Foundation, anonprofit group based in Cincinnatithat promotes women’s health throughconferences, newsletters and books.The foundation’s assets will be transferred to the Clinic by the end of theyear and the organization then will beled by Dr. Holly Thacker, a Clinicdoctor who specializes in women’shealth. Terms of the deal were notdisclosed. — Shannon MortlandRETAIL DEVELOPER GOESINTO CONDO BUSINESS WXZ Development Co. of FairviewPark historically has been a retaildeveloper, but plans to move into theresidential market with Circle 118, acollection of 17 condominiums inCleveland costing upwards of 300,000. Jim Wymer, WXZ president,said financing for the 4 million projectis in place and he expects to breakground within the next four weeks. WXZrecently bought the project site on thenortheast corner of East 118th Streetand Euclid Avenue from UniversityCircle Inc., a nonprofit developmentorganization for the city’s cultural andhealth care district. Special incentivesfor University Circle workers to buythe nearby condos make the projectattractive, he said, in addition tojob growth in the area.— Stan Bullard
CCLB 11-10-08 A 4 CCLB411/7/20083:14 PMPage 1CRAIN’S CLEVELAND BUSINESSWWW.CRAINSCLEVELAND.COMNOVEMBER 10-16, 2008Proenza plan aims to enhance Akron U.’s visibilityUniversity president details strategicplan to power educational reputationBy SHANNON [email protected] completing more than 500million in construction projects totransform the University of Akroncampus, Luis Proenza now wants tospend the next decade turning theschool into a research powerhouse.UA’s president in the comingweeks will begin asking faculty, staffand students, as well as businessand community leaders, alumniand local citizens, to help himdevelop a strategic plan that willchart the University of Akron’scourse to become a bigger player inhigher education in Ohio.He has outlined six ambitious goalsthat he hopes will give the universitya competitive advantage.First, he wants Akron to reach 200 million annually in sponsoredresearch projects by 2020. It’s a biggoal, but the school already has someexperience in growing its researchgrants. In the fiscal year that endedJune 30, 2008, the University of Akronhad 34 million in research dollars,up from 20 million in 1999, Dr.Proenza said.Kent State University presidentLester Lefton also has announcedgoals of his school becoming Northeast Ohio’s public research equivalent of Case Western Reserve University. Dr. Proenza said there’s room forboth public universities to becomelarge players in research because theywill focus on different areas of study.“We all ought to aspire to thehighest goals, but aspire to be different from one another,” he said.Dr. Proenza said his university willstrive to become a force in technologydevelopment in areas such asadvanced materials, biotechnology,energy and health care. An exampleof working toward that goal is theBioInnovation Institute, which waslaunched last month.The institute is a partnershipinvolving the University of Akron,Akron Children’s Hospital, AkronGeneral Health System, the Northeastern Ohio Universities Collegesof Medicine and Pharmacy andSumma Health System. Thepartners have pulled together 80million to be spent over the next fiveyears developing and commercializing polymer-based materials forvarious medical uses.Dr. Proenza said he sees the University of Akron becoming a regionaleconomic driver by working more“Only two business functions produce new customers.They are marketing and innovation.All other functions are expenses.”Marketing begins with getting your positioningright. How is your company’s product or servicedifferentiated from your competition? How doyou express this difference in the minds of yourcustomers and prospects? If you don’t get thisCall Dick Maggiore at 1-800-460-4111or go to innismaggiore.com to learn more.Advertising : Branding : Media : Web/Interactive : Public Relations : Direct : Research 2008 Innis Maggiore. All rights reserved.right, then marketing is just an expense.in the practice of positioning.– Luis Proenza, president,University of Akronclosely with other Ohio universities,community colleges and local industry.Such efforts could positively impactthe region, said Ann Womer Benjamin, executive director of the Northeast Ohio Council on Higher Education, which represents 20 colleges anduniversities in Northeast Ohio.“Northeast Ohio schools are fortunate to have very active, forwardlooking presidents,” she said. “Together, they can certainly play asignificant role in revitalizing the region and they do.”Dr. Proenza already has madeprogress on that front through partnerships with Lorain County Community College to provide better access tohigher education, boost technologycommercialization and share backoffice operations to reduce expenses.As for the undergraduate curriculum, Dr. Proenza wants it redesignedto be grounded in entrepreneurshipand skills that would better enable itsgraduates to compete on a globalscale, while maintaining its foundation in the humanities, arts and culture.The need for speed– Peter Drucker, the father of U.S. management consultingInnis Maggiore is the nation’s leading agency“We allought toaspire tothe highestgoals, butaspire tobe different from one another.”Dr. Proenza is calling for thestrategic planning process to becompleted by the end of 2009 and tobegin implementation in 2010. Hesaid he wants to provide details ofthe plan to the public a year fromnow.The University of Akron is movingin the right direction to impact thestate’s economy, said Daniel Hurley,director of state relations and policyanalysis at the American Associationof State Colleges and Universities inWashington, D.C.For every 1 million in researchand development spending, 36 jobsare created, Mr. Hurley said. Now isa great time to pursue more researchgrants, he said, because Presidentelect Barack Obama has promisedto enhance federal spending onresearch.There’s plenty of competition outthere from regional universitieslooking to boost their participationin research, Mr. Hurley said. But theUniversity of Akron already hassome help from Ohio Gov. TedStrickland and higher educationchancellor Eric Fingerhut, he said.“Ohio already stands out in itsprograms and using all of highereducation as an economic lever whenit comes to research and development,and not all states do that,” Mr. Hurleysaid. Such support from the stateleaves the University of Akron “poisedto effectively advance its researchagenda,” he said. Volume 29, Number 45 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright 2008 by Crain CommunicationsInc. Periodicals postage paid at Cleveland, Ohio, andat additional mailing offices. Price per copy: 1.50.POSTMASTER: Send address changes to Crain’sCleveland Business, Circulation Department, 1155Gratiot Avenue, Detroit, Michigan 48207-2912.(888)909-9111.REPRINT INFORMATION: 800-290-5460 Ext. 136
CCLB 11-10-08 A 5 CCLB11/7/20083:14 PMPage 1NOVEMBER 10-16, 2008CRAIN’S CLEVELAND BUSINESSWWW.CRAINSCLEVELAND.COM5Amid glum holiday retail forecast, seasonal tenants still rentingSome area shopping centers adapt terms, butmost still reporting strong demand for spaceBy JOHN [email protected] retail trade may be taking itspunches this year, but at NortheastOhio shopping centers, the downeconomy doesn’t seem to be keepingseasonal tenants from trying to cashin on holiday traffic.At Westfield SouthPark in Strongsville, for example, the holiday shopping season offers a chance for alittle upturn. Although the mall haslost some tenants since last Christmas, demand for seasonal spacehas been strong, and SouthPark hasbeen able to offer spots to thoseturned away in the past.“Last year, we might have hadseven (available spaces), and thisyear, we have 12,” said marketingdirector Andy Selesnik. “Everythingwe have available to fill is filled.”Of the 32 carts and kiosk spaces atSouthPark, Mr. Selesnik said occupancy is at about 70%, which hecalled “average for the first part ofNovember.” By the time Decemberarrives, he expects that roster to befilled as well.“It’s not as if (tenants)can sit back and say,‘They’re predicting a badseason, so I’m just notgoing to open this year.’”– John Vavrus, manager,Summit MallIn 2007, malls nationwide averaged about three temporary inlinetenants — those occupying permanent storefront spaces — and about10 seasonal kiosks, according to ErinHershkowitz, spokeswoman for theInternational Council of ShoppingCenters.“We’ll probably see a dip this yearin the inline tenants and the kiosksjust because the retailers and the(shopping) centers aren’t expectinga huge turnout for the holiday season,”Ms. Hershkowitz said.Nick Rudy, general manager ofParmatown Mall, however, is pleasedwith the numbers he’s seeing in whatthe mall terms “specialty leasing.”“We are exceeding our budgetedincome goals for this year by 11%,and we’re up 8% on budgetedincome for last year,” Mr. Rudy said.And while the mall doesn’t havemore space that it’s looking to lease,he said there are display carts thatcould be moved if there was interestfrom other kiosk-seekers.“Obviously, you want the mall tobe 100% leased with people having afive-year lease,” Mr. Rudy said, “butright now (retailers) are all holdingback. They’re not in an expansionmode.”Beachwood Place also is wellpacked, according to marketingdirector Heidi Yanok. She declinedto offer specific tenant numbers,though, noting that it’s hard to saywhat constitutes a “seasonal” tenantwhen many renters stay from September through February.“They are here for the time ofyear that traffic does pick up,” Ms.Yanok said, “and the holidays arealways busy.”City has signed several short-termleases over the past six months —agreements that can run for up to ayear but end with a 30-day notice —none are holiday-associated “seasonal”tenants.“We don’t have any vacancies,”Ms. Kreiger said. “We’re full for theholidays, which is awesome.”Tower City’s holiday-related kioskrentals, though, have slowed.“That’s where you’re really kind ofseeing what I would say are the economic cutbacks,” Ms. Kreiger said.“Let’s say you have an ornamentcompany that would normallycome in and take (a cart) at everymall in the market. This year, you’reseeing them cut back and specializeto one or two locations.”To help offset that slip, TowerCity is pitching the carts to localartists or selling them as advertisingvehicles. Maui Sands Resort inSandusky, for example, uses one ofthe kiosks as a promotional outlet.Great Lakes Mall manager TonyPestyk said it has been a challengefilling the empties this season, buthe’s got about a dozen seasonaltenants renting inline space andanother 10 occupying some of themall’s 25 carts.Securing those tenants, though,sometimes comes at a price: Mr.Find yourPestyk said the Mentor mall has hadto become more flexible in its rentalrates.“If there’s a local tenant that Iwant to see inside I’ll negotiate alower rent just to get them in,” Mr.Pestyk said. “But typically, the rentsare higher for an outside retailerusing the space during the busiesttwo months of the year.”Summit Mall’s shockerSummit Mall manager John Vavrussaid while filling seasonal tenantspaces has been harder this year, theFairlawn shopping center’s occupancy and rental income in thoseareas are ahead of last year — and, henoted, “I’m as shocked as you are.”One big difference this year isthat the mall has been flexible inallowing seasonal tenants to opencloser to the holidays than usual,Mr. Vavrus said.“A lot of the tenants are comingin for a shorter term than historicallythey have, and that’s going to savethem on payroll costs,” he said.“That will help their profitability.”Mr. Vavrus also figures thatdespite the recent gloomy retailpredictions, the seasonal tenantmarket remains steady becausemerchants have bought their product in advance and are committedto the selling period.“It’s not as if they can sit backand say, ‘They’re predicting a badseason, so I’m just not going toopen this year,’” he said. Banking for Your BusinessBUSINESS CHECKING & SAVINGSMERCHANT SERVICESSCAN CHECKS REMOTELY WITH E-Z DEPOSIT FOREIGN EXCHANGE SERVICESBUSINESS LENDINGPAYROLL SERVICESAt Charter One, not only do we have the tools and services to help your business succeed, we havethe people. Our dedicated Business Bankers will work one-on-one with you to develop a financialsolution that fits your needs. To see how we can help your business grow, visit your nearest branch,go to charterone.com/businessfit or call 1-866-287-6647. We’re ready to work for you.Dedicated. Solutions oriented.We could be the best hire you ever make.An ‘awesome’ outcomeTower City Center general managerof retail Lisa Kreiger said while TowerMember FDIC. All accounts, loans and services are subject to individual approval. See a banker for details. Charter One is a division of RBS Citizens, N.A.
CCLB 11-10-08 A 6 CCLB611/7/20082:20 PMPage 1CRAIN’S CLEVELAND BUSINESSWWW.CRAINSCLEVELAND.COMNOVEMBER 10-16, 2008PNC may net billions in tax benefitsOkay, let’s get the pun out of the way. You’dbe nuts to miss this deal. Just sign a 5-yearlease and we’ll give you the first year for adollar. That’s peanuts! So Give Pat Finley acall at 216.514.1950 for a list of prime officespace locations, or go to our web site for moreinformation. It’s prime time to get into someprime space so scamper on down to see us.Saveyournuts.Get ayearfor abuck.MATTHEW SCOTTFinancial WeekPNC Financial Services Group Inc.stands to get a huge helping handfrom the tax man in its plannedacquisition of National City Corp.,thanks to the continued relaxation oftax rules by the U.S. Treasury and theInternal Revenue Service.The rule changes mean financialinstitutions that sell assets throughthe government’s Troubled AssetRelief Program or receive capitalinfusions in connection with itsCapital Purchase Program willbecome the potential beneficiariesof tax benefits that eventually couldadd billions of dollars to the cost ofthe 700 billion Wall Street bailout.The latest rule change encouragedPNC’s planned 5.6 billion purchaseof National City. That deal followsanother, Wells Fargo’s 15.1 billionpurchase of Wachovia, aided by thesame rule. Over the long run, the taxcontinued from PAGE 3Who’s Behind the Power ofRSM McGladrey?The ClientService Professionalsin Audit, Tax andBusiness ConsultingOppenheimer & Co. equity analystTerry McEvoy said Mr. Raskind’splanned departure deals a blow toNational City workers, who have agreat deal of respect for their CEO.“After the deal closes, who’sthere to support you?” Mr. McEvoyasked. “In the case of employees atlegacy National City, they may loseout if a tough decision is made.”Mr. McEvoy said he expected thatthe vice chairman position would notbe filled by a National City employee.Rather, someone from the bankmight fill a more temporary role, as aliaison or an administrator, he said.National City spokeswomanKristen Baird Adams said transitionleaders Ms. Seifert and Mr. Gorneywere selected for the “breadth anddepth” of their experience. Shereferred additional questions to PNC.Fred Solomon, a PNC spokesman,said it was too early in the process forhim to comment on or speculateabout anything related to the merger,including what kind of a voice National City would have in the process.“There’s not a lot to say at thispoint,” Mr. Solomon said.Veteran presenceDave DobranicBill PetrusWe’ve grown our careers in Ohio and remain committed to theindustries in the region. We listen and understand the challengesto solving clients’ ever-changing ﬁnancial service needs in a widerange of segments – from commercial, manufacturing and wholesaledistribution to the service sector.Additionally, we’ve gained a well-deserved reputation with ourdistinct knowledge and expertise in employee beneﬁt plan audits.With a team of dedicated professionals ready to serve you, we understand the
land Museum of Art finally to be able to run with the big dogs of the art museum world. The museum has opened the first of its new space in the first floor of the east wing. With 14,000 square feet of exhibition space on the first floor and the 24,110- square-foot second floor to open next Ju