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The Valley’s Business Matters www.BusinessJournalDaily.com


ISSN 1047-8582 Vol. 26 No. 11 DECEMBER 2009 $2.50

Recession Creates
Opportunities for
Entrepreneurs
New business owners cite availability of
space, experienced workers as benefits
By Maraline Kubik

T
he driving force for new business development is necessity – either to
meet the needs of a community or to meet the needs of a highly motivated
entrepreneur.
With so many unemployed workers scrambling to secure the few jobs that
are available, some unable to find work are looking to create employment for
themselves. Others who’ve dreamed about going into business for years are also
taking advantage of opportunies the recession has provided to enter the throes
of entrepreneurship.
How they will fare over the long term remains to be seen, but those surveyed
by The Business Journal are determined to stay the course and cash in when
the economy rebounds.
Steve Badurik had always dreamed about opening a butcher shop. With 18
years’ experience working in the business, he says, he knew he had the skills
and was starting to scout possible locations when the recession hit.
He had just looked at a building that could meet his needs and was driving to
work when an interview with Warren Buffet was broadcast on the radio. “This
is a true story,” Badurik insists, fully aware of how incredible it sounds.
Steve Badurik is serious when he says Warren Buffet told him to open his shop – and so he did. See ENTREPRENEURS, page 10

Don’t Blame
The Keyboard
By Dennis LaRue

D an O’Brien, a part-time instructor of history


at Youngstown State University in addition
to being a full-time reporter here, is often
challenged when he reads the answers to the essay
tests he gives.
A scrawl that O’Brien deciphered from a test on
U.S. history he gave two years ago, which we can’t
reproduce because of the university’s concerns about
See PENMANSHIP, page 40
Second-grade teacher Christina Roussos teaches handwriting
to Darcy McTigue at Dobbins School in Poland.
2 DECEMBER 2009 The Business Journal
The Business Journal DECEMBER 2009 3

13 Made the Old-Fashioned Way


At J.L. Treharn & Co., Jon Badescu makes
dovetail drawers for fine antique reproduc- Members of the Beatitude House Green Clean co-op say building their business will allow them to provide financial security for
tion furniture just as craftmen did 200 themselves and their children. From left are Cindy Schwab, Jody Rizer and Alma Clark, co-op founders; Mary Kohut, career counselor;
years ago. Maraline Kubik takes us to Maryvel Vera, co-op founder; Kelly Elko, general manager; Bouchra Semlani, co-op founder, and Brenda Cochran, trainer.
the Youngstown furniture company in her
“Made in the Valley” series.

Clean-Sweeping Their Way


To Financial Independence
Underprivileged women build of women in similar situations, are business own-
ers working to provide financial security for their
business to support their families. families and a legacy for their children.
Beatitude House Green Clean is an employee-
By Maraline Kubik owned cleaning service that incorporates environ-
mentally friendly cleaning products and processes.

N
6, 16 Port Authority Names Director ot long ago, Tawanda Patterson and Alma It is one of six social entrepreneurship projects in
Rose Ann DeLeon is the new executive Clark were working to earn their GEDs at the region to receive startup funds through the Ma-
director of the Western Reserve Port Au- The Potter’s Wheel, an education and career honing Valley Community Wealth Workshop Series,
thority. On Page 6, read how her position preparation program that the Ursuline Sisters of which is funded by the Wean Foundtion and the
was created to boost development. On Youngstown operate for underprivileged women Community Foundation of the Mahoning Valley.
Page 16, read our editorial that salutes through Beatitude House. Sister Patricia McNicholas, executive director of
public officials for collaborative efforts. Beatitude House provides transitional housing Beatitude House, came up with the idea for establish-
and education programs for homeless and un- ing a cleaning company that operates as a business
derprivileged women in Mahoning and Trumbull cooperative after learning about a similar venture
counties. launched by Ursuline Sisters in southern Ohio,
Patterson and Clark were both unemployed and explains Mary Kohut, a career counselor at Potter’s
determined to build better lives for themselves and Wheel. The eco-friendly aspect of the business is
their children. Today, they, along with a handful See CLEAN-SWEEPING, page 4

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4 DECEMBER 2009 The Business Journal

Clean-Sweeping: On Their Way to Financial Independence


From Page 3 Grigsby sits on the board of directors at First Uni- to the lowest bid” received, she says. The church
based on a green cleaning company in California. tarian and says that as soon as she heard the radio awarded the contract to the cleaning co-op because
Six women, all clients of The Potter’s Wheel, report about the co-op she thought it would interest board members believe the benefits Green Clean pro-
formed the Green Clean business cooperative early church members. vides co-op owners, community and environment
this year. They began developing a business plan Green Clean’s organization as a business co-op greatly outweigh the sum they would have saved had
in January, Kohut says, and started training in July. that benefits all of its members and the fact that it they awarded the contract to the lowest bidder.
Their plans are to expand their customer base, uses eco-friendly cleaning practices complements Green Clean is bonded and insured and was
thereby creating employment for themselves. Even- the beliefs and attitudes of church members, Grigsby incorporated in Ohio in October. It specializes in
tually, they’d like to employ other women and invite says. So, shortly after hearing the report and discuss- general cleaning, move-in and move-out cleaning
some of them to become co-owners too. ing it with fellow board members, she called the but will also “deep clean” on request, Kohut says.
New employees will be interviewed, hired and cleaning co-operative and asked for an estimate. Prices start and $75 and free estimates are provided
trained by the co-op owners, who oversee all aspects The bid Green Clean submitted “was very close for both homes and businesses.
of the business, Kohut says. Those invited to join the
co-op will buy into the company. Funds collected,
she says, will most likely be used to finance expan-

SKILLED PROFESSIONALS.
sion. Once Green Clean begins generating a profit,
co-op owners will share the proceeds.
The women involved in the venture completed

PRODUCTIVE RESULTS.
their training at the Hampton Inn in Canfield, work-
ing one-on-one with hotel cleaning staff. Hampton
Inn provided the training free of charge as a service
to the community, Kohut explains.

I
All cleaning processes Green Clean team mem-
bers use are standardized, she notes, so all customers f you care about quality – commit The Builders: Teamwork. Safety. Manpower.
receive the same quality of service and results. to using the best contractors in
The Hearn Paper Co. taught the women how to this region’s construction industry: Choose Smart. Choose the Builders.
use the eco-friendly cleaning products Green Clean Members of The Builders Association of

THE UILDERS
employs. Members of the cleaning co-op have also Eastern Ohio and Western Pennsylvania.
completed training in customer service and business
finance and each sits on the company’s board of We are skilled professionals who offer
A S S O C I A T I O N
directors because, Kohut says, eventually they will productive results. S K I L L E D P R O F E S S I O N A L S . P R O D U C T I V E R E S U LT S .

be solely responsible for business operations.


In addition to using eco-friendly products and We are veteran craftsmen who complete To obtain a list of association
processes, Green Clean distinguishes itself by pro- jobs on time, on budget and in a members please call 330-539-6050
viding services at clients’ requests that other cleaning customer-friendly manner. or visit our website at:
companies don’t, Kohut says – things such as strip- www.TheBuildersOnline.com
ping linens from beds and taking down curtains. We support the local construction
They’ve also accommodated special requests, industry with training and
such as emptying a closet so an elderly client could resources so that our project
As
sort through what was stored and discard the items owners get skilled, expert our n k about
in
she no longer needed. “We want to provide that workmanship. Every day. Cu e-poin
personal touch. We clean with our hands and our Bill o stomer t
f Rig
hts!
hearts,” Kohut says. “These women have been
given an opportunity and they want to give back.”
Although they charge for these services, Kohut says
clients are grateful.
“I’m very optimistic for the future,” says Tawa-
nda Patterson, one of the co-op founders. “I never
thought about owning a business but I wanted to
work. When I heard about this, I thought it sounded
like something for me. I plan to make this my career.
I want to manage the business.”
Alma Clark, another founding partner, says the
first thing she thought about when the idea of start-
ing a cleaning co-op was introduced was “money,
money, money.”
The mother of three teenagers obtained her
GED and is pursuing a degree in social work at
Youngstown State University, a discipline in which
she eventually hopes to work. But, Clark says, she
believes that being a business owner will pay off for
her in the long run and will allow her to leave her
children something of value. “It’s a good opportunity
for the ladies in the [Beatitude House] program,”
she says.
Among Beatitude House Green Clean’s first
regular customers is the First Unitarian Universalist
Church in Youngstown.
“I heard about it on WYSU-FM,” says Jan Grigsby.
The Business Journal DECEMBER 2009 5

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6 DECEMBER 2009 The Business Journal

Port Authority
Your business finances. Names DeLeon
To New Post
By George Nelson

T
he newest member of the Mahoning Valley’s
economic development team expects
opportunities to emerge as the economy
recovers from the recession, and she says the region

balancinAg
needs to be prepared to capitalize on them.
Rose Ann DeLeon, newly hired executive director
of the Western Reserve Port Authority, says oppor-
tunities are “floating around” and she looks forward
to meeting with the area’s economic development

act
specialists “and moving forward with them in a
collaborative effort.”
DeLeon was named by the port authority’s board
of directors to the new post, which is being funded
by county and local governments and the Western
Reserve Building & Construction Trades Council.
She was introduced at a press event Nov. 23.
“Today marks the first day of our initiative as an
economic development entity within the two-county
area,” said John Masternick, chairman of the port
authority, which operates the Youngstown-Warren
Regional Airport.
DeLeon, who resigned as director of government
relations and federal affairs for the Cleveland-

or well-balanced plan? Cuyahoga County Port Authority to accept the post,


is responsible for using powers delegated by state
law to port authorities for economic development,
such as bonding authority and the ability to own
property. She will also oversee the foreign trade zone
the port authority administers.
Many of a port authority’s economic development
tools are similar to those of a municipality, DeLeon
said. “The difference with a port authority is that’s
all they do, the economic development.”
DeLeon started her career at the Cleveland-
Business finances are a lot to juggle, especially when you know your focus should be Cuyahoga authority in 1993, where she was involved
on running your business. Here’s reassuring news. There’s one place with experts who with financing construction of the Rock and Roll
successfully balance them for you, so they can add up to more. Hall of Fame and Museum and helped develop the
authority’s financial tools.
At First National Bank, we have the strength, stability and experts to help you analyze your Trumbull County Commissioner Paul Heltzel
business as a whole and coordinate your banking, wealth management and insurance. And praised the collaborative effort among Valley com-
it’s the very best plan for growing and protecting your business and your economic future. munities. Participants in funding the position
included Mahoning and Trumbull counties and the
W E C A L L I T T O T A L M O N E Y M A N A G E M E N T cities of Youngstown, Warren and Niles.
One place. One well-balanced plan. One phone call away. “What happened here is something that hasn’t
happened in the past,” he said. Acknowledging
Call a business banker at 866.362.4601 to schedule a time to talk. there were times it looked like the effort might not
come together, he recalled how Ryan prodded com-
munity leaders. “Now we’re going to see the fruits
of that,” he said.
Walt Good, vice president of economic develop-
ment, business retention and expansion with the
Youngstown/Warren Regional Chamber, said the
appointment adds “a significant tool” to the Mahon-

FNB Balanced ing Valley’s tool chest.


“Now there’s someone full-time, on staff at the
port authority so that when we’ve got a prospect that
makes sense for a port authority financing structure
www.fnb-online.com Q209BJ or ownership structure, there is a professional who
can act on behalf of the port to put that piece of the
puzzle together.”
7585_FNBP BBAd_1C_VBR2_6.0625x10.875.indd 1 3/25/09 5:19:02 PM
The Business Journal DECEMBER 2009 7

Holiday Sales Sparkle at Gene’s Jewelers


Estate jewelry offers less
expensive options for buyers
staying within a budget.
By Jeremy Lydic

Y ou don’t expect a jewelry store to offer cameras


and electric shavers, so Gene’s Jewelers no
longer does, but holiday shoppers will find
similar items in stock along with fine jewelry at
Gene’s in Warren.
Gene’s customers can still choose from a selec-
tion of wall clocks, hand-painted stemware – even
custom designed purses from the Pittsburgh-based
Littlearth. Making such items available keeps with
the family business of offering something different,
says co-owner Patricia Crowley, whose father, Gene
Battista, opened the shop 55 years ago on the first
floor of the former Park Hotel.
The shop moved to its address on North Park
Avenue in 1970. Crowley still keeps an enlarged
picture of her mother, Alda Lee Battista, on the
wall to remind her of the shop she walked to after
attending school at St. Mary’s.
Quality and affordability are important to Crow-
ley, she says, and while the recession has hurt sales,
layaways are double last year’s. Offering price point
jewelry items such as Orbis, Kameleon and Viva
Beads also gives customers an option they feel they
can afford when holiday shopping.
“I don’t care what anybody says, people like to
give a gift,” Crowley says. “But you don’t want to be Thomas K. Crowley, president of Gene’s Jewelers, and gemologist Patricia Crowley, gemologist, pose in front of a picture of Patricia’s
mother, Alda Lee Battista, taken when the jewelry store opened in downtown Warren 55 years ago.
choking at the end of the day on what you spent.”
Only three stores in Ohio carry the exclusive In the last 10 years, more customers have shown $1,500.”
Texas-based Orbis line that features large and petite an interest in a variety of items, Crowley says. That Repairs have also helped to increase foot traffic,
interchangeable orbs made of natural materials such interest has helped generate strong sales for the Or- says co-owner Thomas Crowley. Four years ago the
as diamonds, onyxes, opals and cat’s-eye. Rings start bis line, and the similar but less expensive Kameleon shop bought a laser welder that allows Crowley to
at $150 and, depending on size and the metal in line, she says. Crowley has also noticed a growing make repairs faster and more precisely than with a
which they’re set, go up to $6,300. interest in estate jewelry. traditional welder, he says. Gene’s used to send out
The price of orbs depends on size and material, Gene’s started buying gold this year. “I probably most of its repair work, but now can perform 90%
but they can be used with the rings, necklaces, ear- buy gold three or four days a week,” she says. When of all jewelry repairs, including eyeglasses. Since
rings and bracelets the brand offers. A big drawing the store buys a piece, it will be cleaned and put on buying the welder, the volume of repair work has
factor to the Orbis product is its versatility, Crowley the shelf for resale. For $200 to $500, a customer increased 8%, he says.
says. can buy a piece of estate jewelry that would have “Everything about it is more efficient,” Thomas
“People don’t get dressed up anymore,” Crowley cost $750 to $1,600 new, she says. Crowley says. “We generally schedule repairs for
observes. “With this, you can spend a little or a lot, “They know it’s previously owned, but they don’t seven days, but I’ve been getting them done within
and you can wear it every day.” care,” Crowley says. “They have $700 to spend, not a day or two.”
8 DECEMBER 2009 The Business Journal

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The Business Journal DECEMBER 2009 9

Greek Immigrant Keeps Isaly’s Name Alive


Isaly’s restaurant was the first
place he ate after arriving in
Youngstown in 1976.
By Dan O’Brien

T he name Isaly’s – a name ingrained in the


memory of the Mahoning Valley’s 45-and-
older crowd – verged on extinction here 10
years ago and it seemed likely the area would lose
forever an iconic link to its commercial past.
Today, not only does the Isaly’s name survive
– it’s expanding.
“Isaly’s was the first place I used to eat when I
arrived here,” says Nick Grillis, who left his family’s
commercial fishing business in Greece in 1976 for
the United States. After establishing a painting com-
pany from which he’s retired, he and his wife, Sahara,
purchased the former Isaly’s restaurant at 3309 South
Ave., since renamed Isaly’s Busy Bee.
Recently, the couple opened a second Isaly’s
breakfast and lunch restaurant – Isaly’s Busy Bee II
– at 6922 McCartney Road in Coitsville Township.
“I’ve always loved the food,” he says, “and we wanted
to keep the Isaly’s name alive.”
Grillis says his two restaurants are among the last
of a dying breed – the Isaly’s restaurant and lunch
counter. The corporate name lives on as Isaly’s Inc.
as it continues to package and distribute its celebrat-
ed chipped-chop ham to grocery stores throughout
the country.
But the nostalgia the Isaly name left in the Ma- Christeen Partika, fiscal officer for Coitsville Township, Phyllis Johnson, Coitsville Township trustee, and Nick Grillis, owner of
Isaly’s Busy Bee II Restaurant, cut the ribbon marking the establishment’s grand opening.
honing Valley was slowly fading as the economy
continued to deteriorate in the inner city and more and soup; everything is made from scratch.” The new site in Coitsville opened Sept. 3, and
residents moved to the suburbs. Isaly’s was founded During the 1930s, Isaly’s constructed what was Grillis describes the reception over the last three
in Mansfield, Ohio, during the early 20th century. then an eye-popping dairy processing complex on months as exceptional. “I’ve always wanted to do
Founder William Isaly went on to expand to Marion Mahoning Avenue, considered a landmark example this,” he says. Aside from serving the traditional
and Youngstown, creating a family-operated fran- of Art Deco architecture. Today, a U-Haul franchise Isaly’s fare for breakfast and lunch, he’s also thrown
chise that dominated eastern Ohio and western occupies that structure. in a touch of the old country by serving gyros.
Pennsylvania. “A lot of people thought we’d gone out of busi- He stresses the South Avenue store is still going
One of the early restaurants in Youngstown was ness, too,” Sahara Grillis says. “But we’re still here strong, despite the recession. “Everyone knows us
the storefront on South Avenue. The original Isaly’s and folks love us around the neighborhood.” there, and we’d never want to close it,” he says.
signage is still visible inside the restaurant along About eight years ago, Nick Grillis recalls, a The Coitsville store employs five while the South
with vintage photographs of the old shop. “We still member of the Isaly family entered the small res- Avenue restaurant employs seven. Just a handful of
have some of the older customers coming in who taurant on South Avenue just to thank the owners restaurants with the Isaly name still exist, none of
remember the original restaurant,” says Sahara Gril- for keeping the Isaly name. “She was extremely them owned by Isaly family members, Grillis says.
lis. “We still use the original recipe for home fries grateful,” he recalls. “It’s a part of history here,” Grillis remarks.

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10 DECEMBER 2009 The Business Journal

Entrepreneurs: Finding Opportunity


From Page 1 the onset of the recession or, more
The interviewer asked Buffett the specifically, the loss of a major ac-
best thing to invest in during a reces- count – the result of downsizing at the
sion, Badurik recalls. “He said, ‘Invest client’s organzation – forced the Web
in yourself. If you’re a good meat cut- site design, Web hosting, computer
ter, open a butcher shop.’ ” sales and repair business to open a
That bit of wisdom delivered by retail location, says Gordon Gibson,
a billionaire investor via the radio one of the founding partners.
nudged Badurik to take the plunge. Gibson and his partners – Terry
“It had always been my dream, and Bolds, Frank Singletary and Ron
Warren Buffett told me to do it,” he Thompson – all members of Rising
chuckles. Start Baptist Church, started Ambas-
And so, he opened Badurik’s Butch- sador Technologies as a “virtual busi-
er Block in Mineral Ridge Feb. 2, ness” with no designated work space
hiring three workers who’d been laid in 1999. They’d been setting up and
off, one from a deli and two from repairing computers for friends for
the butcher shop where Badurik had years and decided to start a formal
worked. When it came to finding business as demand for their services
experienced workers, the recession grew. “People kept coming back to
helped his new business, he says. us and we thought ‘Maybe there’s a
Since opening his store, Badurik market here,’ ” Gibson recalls.
has served a lot of repeat customers The partners worked out of their
and every week the butcher sees new homes, securing office space inside
faces, “but in business you take steps a preschool after landing a contract
forward and you take steps back,” he to maintain all of the computers in a
says. During the summer his butcher local charter school. That contract re-
shop had a steady stream of custom- quired Ambassador to maintain some
ers, but it slowed significantly in 500 computers and seven servers and
September and October. provided the bulk of the company’s
That slowdown wasn’t unexpected, work.
Badurik says. The summer months When the school downsized and
are always busier because people are canceled Ambassador’s services, the
grilling outdoors. With the holidays, partners had no choice but to go after
Badurik says he expects demand for what Gibson calls “walk-in business.”
home-smoked ham and keilbasa, fresh Until then, customers were all referred
����������������������� turkeys, prime rib and capons to boost
sales at his shop.
to Ambassador Technologies through
word-of-mouth.
Once the economy rebounds, Ba- The entrepreneurs opened a walk-
������������������������������������������ durik says he expects business to grow
substantially.
in retail location in a plaza along Bel-
mont Avenue in Liberty in June 2008.
���������� At Ambassador Technologies Inc., CONTINUES NEXT PAGE
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��������� Gordon Gibson says his company, Ambassador Technologies Inc., decided to open a retail location
when its largest customer down-sized and canceled its contract.
The Business Journal DECEMBER 2009 11

“It’s been tough. We’ve just been going of them before, they still take care
week to week,” Gibson says. Business of them even if they don’t have the
has picked up a bit since Walmart money they used to.” The only dif-
opened, he notes. ference, she says, is that they may not
Gibson, the only one of the part- have their pets groomed as often.
ners involved in day-to-day operations Mike Baluck, a steel-mill worker
of the company – two of his partners turned painter, is still working to offi-
are ministers and the other lives in Ak- cially launch Mike’s Decorative Effects,
ron – says the downturn in business a painting and wallpapering business.
neccessitates that he work differently. Baluck decided to go into business for
“I’m more of a salesman now,” he himself after losing his job in 2002.
says, calling on potential customers a “I’ve been pretty much unemployed
couple days each week. Before open- since then,” he laments.
ing the storefront, he says, he focused He’d always done painting and
more on Web site and graphic design wallpapering “on the side,” Baluck
projects. says, and he decided to pursue that
In addition to selling and servicing full-time “because that was my best
computers and designing and hosting option. No one is hiring. So, I’m kind
Web sites, Ambassador also provides of reinventing myself.”
Jeff Kolesar held the grand opening for his jewelery store, JK Jewelers, in Canfield, in November.
graphic design and printing services, He’s taken several workshops to
supplying local businesses such as learn techniques for creating decora-
Charlie Staples Bar-B-Q and Galaxy tive finishes on walls and woodwork
Seafood with menus and other printed and is working on a brochure to pro-
products. mote his services. “I’d like to connect
Jeff Kolesar, a full-time jeweler and with architects and designers because
part-time barber who’d worked for a the kind of work I’m doing is a little
prominent jewelry store in Columbi- bit more high-end and that’s where my
ana nearly 14 years, says he knows a bread and butter would be,” Baluck
good opportunity when he sees it. explains.
He started preparing to open his Although he’s provided estimates
own jewelry store “seven or eight for a handful of prospective custom-
years ago” and when the store next ers, Baluck says, “People are holding
to his barbershop, Rossetti Hair Co., on to their money. I’ve heard people
in Canfield closed, the opportunity are putting their money into their
couldn’t have been better. homes but I don’t buy it. Most people
Kolesar leased the space and spent are holding on to it and the ones with
nine months renovating it before money to spend are getting caught up
opening this autumn. Although he ad- in a frenzy of bargain hunting.”
mits “this is one of the more difficult Starting a business to create em-
times to go into the jewelry business,” ployment opportunities for oneself Mike Baluck is learning the trade, hoping to launch a painting and wallpapering business.
it may be the only opportunity he’d is not the best reason to go into busi-
have to own and operate two busi- ness, counsels Bill Oliver, a business
nesses side by side. consultant at the Ohio Small Business
Being in the hair business, he Development Center at Youngstown
adds, “is a good bridge” to the jewelry State University. “They aren’t moti-
business because he can easily refer vated for the right reason and we try
customers in the barbershop to the to discourage them,” he says.
jewelry store when they’re looking for While the number of people at-
special gifts. tending business startup workshops
Christine Mitchell recently sponsored by the business develop-
launched her business, Pawsh Pets ment center has remained constant
Grooming Salon, when a similar op- – 15 or 20 each month – Oliver says
portunity presented itself. he has noticed a larger percentage of
She’d been out of work for almost those are considering entrepreneur-
a year – the pet grooming company ship because they can’t find work
where she had worked didn’t have elsewhere.
enough business to merit her driving However, he notes, “Very few peo-
from Struthers to Canfield every day ple are starting businesses now if they
– when an Ebay store near her home need money because the banks aren’t
closed and the space was put up for lending.” The few that have started
rent. have been self-financed, Oliver says,
“I always wanted to own my own and most have been “very small one-
business,” Mitchell says, so she signed or two-person operations run out of
the lease and opened in May. their homes.” As examples he cites an
Since then, business has been bet- insurance agent and a manufacturer’s
ter than what she’d expected. representative.
“I don’t think the pet industry A couple of convenience stores
was hurt as bad by the recession as opened by clients of the center were
other businesses,” Mitchell explains, also self-financed, but they would
“because people see their animals have opened recession or not, Oliver
as children. If they were taking care says. Christine Mitchell opened her Pawsh Pets Grooming Salon six months ago in Struthers.
12 DECEMBER 2009 The Business Journal

First Place Bank introduces


SBA Lender as part of
$10 million stimulus program
for local small businesses

The U.S. Small Business


Administration (SBA)
Recovery Act has made
improvements to its
7(A) program, including Business Journal publisher Andrea Wood, second row, far right, is among 11 women entrepreneurs
eliminating fees and to receive 2009 Ohio Keys to Success awards. Wood won the Social Entrepreneur Award. Other
winners are, from left first row: Averile Lehman, Ann Kersten, Mariann Davids, Michelle Greenfield,
providing a 90 percent Kristen Harris and Tari Rivera. From left, second row: Cindy Wilson, Carla Eng, Catherine Lang-
bank guarantee. Cline, Nicole A. Eaton and Wood. Collectively, these women founded and operate eight Ohio-based
businesses. Awards were presented during a ceremony in Columbus Nov. 19.
Since SBA program details
are often complicated for
business owners to navigate,
First Place Bank has
Andrea Wood Receives
John Yurchison
appointed John Yurchison
as our SBA banker. ‘Keys to Success’ Award
SBA Lender
Vice President
First Place Bank
With over 25 years’ banking
experience and 7 years
specializing in SBA lending,
D eath of steel. Death of steel.
And more death of steel. ...
This was Youngstown’s story
– or so we were told over and over
ized startup makes, and we gave birth
to The Business Journal family, the
people who are the real reason I’m
standing here today,” Wood said.
John has the expertise to again,” recalled Business Journal The annual Ohio Keys to Success
Publisher Andrea Wood, revisiting the awards recognize the accomplish-
help local small businesses doom-and-gloom stories that captured ments of Ohio’s most successful
Call today take advantage of new headlines in the mid 1980s and women business owners and their
at 330-726-3623 national SBA initiatives inspired her to found a publication contributions to local, state and
on 7(A) loans. that focuses on positive business national economies. The program is
or 1-800-997-9856 news and celebrates small business, sponsored by the Ohio Department
or e-mail John at First Place is dedicating entrepreneurship and ingenuity. of Development’s Division of Entre-
“We said, ‘Enough. Let’s change the preneurship and Small Business and
jyurchison@fpfc.net $10 million to assist local subject.’ And so we did,” she said. the Ohio Small Business Development
thriving small businesses Wood described the events that Centers.
through the SBA Recovery fueled her passion to report and The other 2009 Keys to Success
celebrate positive business news in Award winners are:
Act. We’re proud to the Mahoning Valley and found The • Averile Lehman and Cindy
introduce John as the Youngstown Business Journal during Wilson, founders of Office Partners,
small business community’s the Ohio Keys to Success Awards cer- Wholesale/Retail Award;
emony in Columbus Nov. 19. She was • Tari Rivera, founder of Regency
advocate in boosting the among 11 women entrepreneurs who Construction Services, Real Estate/
local economy. collectively founded eight businesses Construction Award;
in Ohio that were honored. • Michelle Greenfield, co-owner
The Business Journal publisher of Third Sun Solar & Wind Power,
and president of The Youngstown Manufacturing/Technlogy Award;
Publishing Co. was honored in the • Carla Eng, founder of Abstract
Social Entrepreneur category. Displays, Marketing/Advertising/PR
“We made it our mission to focus Award;
on positive business news, to look at • Kristen Harris and Catherine
®
industry sectors, to celebrate small Lang-Cline, co-owners of Portfolio
business, ingenuity, the unsung com- Creative, Rising Star Award;
www.firstplacebank.com panies creating jobs one at a time,” • Ann Kersten and Mariann Da-
Wood told those gathered in the the- vids, founders of The Giving Tree,
ater of the Vern Riffe Center. Healthcare/Medical Award;
Member FDIC
“Along the way, we made every • Nicole A. Eaton, owner of Animal
mistake nearly every undercapital- Hospital of Polaris, Service Award.
The Business Journal DECEMBER 2009 13

Not Resting on Their Father’s Laurels


J.L. Treharn & Co. uses almost twice the price of a similar piece – a true
antique – sold at the same auction.
200-year-old manufacturing Because J.L. Treharn furniture is of such good
processes to make furniture. quality – craftsmen use only solid tiger maple or
cherry as the primary wood, employing dovetail
By Maraline Kubik construction and using the same processes and
handtools used in the 18th century – it appreciates

A
carpenter by trade, Jerry Treharn decided in value, Sherry Treharn explains.
to abandon the construction business and Tiger maple is a very rare wood, the tiger strip-
pursue his passion for fine woodworking in ing pattern appearing in only one of every 10,000
the mid-1980s. At the suggestion of Austintown maple trees, she reports. It is highly prized for
antiques dealer Jack Rees, Treharn focused on furniture making and very difficult to find. Luckily,
making reproduction antique furniture by using she continues, J.L. Treharn & Co. has developed
many of the same tools and processes craftsmen relationships with enough suppliers over the years
employed 200 years ago. that they weed out tiger maple from their stocks of
Today Treharn is retired and his children oversee lumber and save it for the furniture maker.
the furniture-making operations in his workshop, Adhering to her father’s commitment to make
housed on the lower level of the old Ward Bakery authentic reproduction furniture as true to the
building in downtown Youngstown, and his fur- orginals as possible, J.L. Treharn uses poplar as
niture is sold in more than 100 specialty stores its secondary wood.
throughout the United States. Secondary wood is
“My dad recognized the quality and talent in used for furniture
Jerry’s work immediately,” says Evan Rees, owner of
Meander Hill Antiques & Gifts in Austintown. About
components that
aren’t visible, such
�������

five years ago, Rees assumed ownership of Meander as the backs of draw-
Hill, the business his father founded in 1965. ers, Sherry Treharn
“According to the story I’ve heard,” Rees contin- explains. Because
ues, “Jerry came in trying to sell some of the items poplar is prolific and
he made – I think it was a coat rack and a mirror. readily available in
Him and my dad hit it off and became friends, and northeastern Ohio,
my dad took him to [antiques] shows and loaned Treharn & Co. uses
him magazines so he could learn about antique Jerry Treharn, seated, left his job as a carpenter to pursue his it as a secondary wood
furniture.” love of fine woodworking in the mid-1980s. His son, Mike, and just like early furniture makers in this
At the time, it was becoming increasingly difficult daughter, Sherry, standing, oversee day-to-day operations. region would have. “If we were in New England
to find quality antique furniture and prices were we would use pine as the secondary wood,” Sherry
skyrocketing, Rees says. So, his dad began phasing many collectors will travel great distances to find Treharn notes.
out antiques and started carrying reproductions of what they’re looking for and, because J.L. Treharn Treharn & Co.’s craftsmen contribute to the au-
the Early American furniture prevalent throughout & Co.’s furniture is what Rees refers to as “heirloom thenticity of the pieces too, using hand planes to fin-
New England in the 1700s. quality,” he says they know it will be something they ish the fronts of cabinets to recreate “the feel” of true
Meander Hill became one of the first retailers to can pass on to their children. antiques, she explains. “It’s very, very labor intensive,
sell J.L. Treharn & Co.’s furniture, Rees reports, and Holding up a newspaper clipping reporting the but it gives you that hand-done look.” Each of the
remains the only local dealer. highest-priced items sold last fall at an auction in furnituremaker’s employees has a specialty. “We
J.L. Treharn is the No. 1 selling furniture line in New England, Sherry Treharn, Jerry Treharn’s daugh- have a drawer man and a door man,” Sherry Treharn
the store, Rees says, and has made his store a desti- ter and company president, says she was surprised continues, and everything is made to order.
nation for shoppers from as far as Georgia. “People to learn that one of the early pieces her father had Finishes used “are uniquely our own,” she says,
love it,” he says. “Early American furniture has a made – a Queen Anne highboy – sold for $8,225, and are designed “to bring out the grain in the
following and you can’t find it everywhere.” So, more than four times the price it sold for new and See NOT RESTING, page 14

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14 DECEMBER 2009 The Business Journal

Not Resting: On Their Father’s Laurels


From Page 13 In its first full year of operations, J.L. Treharn did England, where 80% of Treharn’s furniture is sold.
about $80,000 in business, Sherry Treharn reports. Most retailers who carry the brand are “high-end
Demand grew exponentially after that, peaking boutiques and gallery stores,” she adds.
about five years ago with more than $2 million J.L. Treharn & Co. uses all American-made prod-
in annual sales. Since then, she says, sales have ucts to make its furniture, Ohio-made products if
trailed off, largely the result of a sluggish economy possible, Sherry Treharn says. The company is also
and consumers’ hesitation to make discretionary planning to launch a new line, Treharn Today, de-
purchases. signed to appeal to younger consumers who want
“This summer,” she says, “was the first time ever well-made home furnishings “that don’t look like
we’ve had to lay people off due to a work shortage.” Grandma’s furniture,” Sherry Treharn says.
Nevertheless, she says there is still demand for J.L. Treharn & Co. furniture is available through
quality reproduction furniture, especially in New select retailers. Special orders are accepted.

Jamie Reese uses handtools to finish a cabinet door much like


furniture makers would have in the 1700s.
wood.” Chairs and decorative embellishments are
carved and sanded by hand. Windsor chairs, Sherry
Treharn elaborates, always include three different
woods – bent oak or ash, maple or poplar for the
seats and a hardwood such as maple for the turnings.
They, too, are assembled just as they were hundreds
of years ago, with craftsmen carefully bending wood
to form the backs and armrests, and threading turn-
ings through openings in the seat.
Retail prices for J.L. Treharn furniture range
from about $200 for small tables and candle stands
to $25,000 for a bonnet top secretary patterned af-
ter those made in the 1760s, complete with secret
compartments hidden behind tiny drawers. An
impressive tiger maple dining table waiting to be
shipped to a customer retails for between $5,000
and $7,000, Sherry Treharn reports. The chairs that
go with it – matching Chippendale-style armchairs
– cost about $2,000 each. The side chairs cost
$1,000 each.

Made in the Valley


at J.L. Treharn & Co.
Products: Reproduction furniture
Founder: Jerry Treharn
Year Founded: 1986
Headquar ters/Manufacturing: Youngstown,
Ohio
Number of Employees: 16
Available: Meander Hill Antiques & Gifts in Aus-
tintown, Pine Tree Barn in Wooster and other select
retailers throughout the country.

Source: J.L. Treeharn & Co.


The Business Journal DECEMBER 2009 15

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Initial minimum opening deposit required is $20,000.00 and must be new money to Huntington. Rates apply to accounts opened October 12, 2009 or later. When your balance falls into a particular rate tier, your entire balance will earn the applicable
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16 DECEMBER 2009 The Business Journal

The Valley’s Business Matters


25 East Boardman Street, Suite 306
P.O. Box 714, Youngstown, Ohio 44501-0714
Telephone 330 744 5023
Fax 330 744 5838 • 330 744 0634
Email: info@business-journal.com
Web site: BusinessJournalDaily.com

Publisher Andrea Wood


Assistant Publisher Eileen Lovell
Copy Editor Dennis LaRue
Page Editor Maraline Kubik
Daily Buzz Anchor Stacia Erdos
Videographers Jeremy Lydic
Tony Marr
Mike Moliterno
Senior Reporters Dan O’Brien
George Nelson
Jeremy Lydic
Columnists Monnie Ryan
Lou Zona

Journal Opinion
Photographer Tony Mancino
Rate Comparisons Cara J. McClure
Sales Manager Janet O’Malley
Account Executives Gail S. White
Dan Gonder
Art Director/ Fred Sipe

Credit Where Credit Is Due


Webmaster

Over the years, many, many Mahoning Valley This position came about only because Mahoning
officeholders have come under fire in this space for Valley leaders – and they deserve to be described as
their reluctance to embrace a regional approach in such – made the financial sacrifices necessary to fund
addressing issues this region faces. So we are more the position for the next three years. As U.S. Rep.
than happy to salute the step taken by Mahoning Tim Ryan put it, the communities have chosen not
and Trumbull county governments, the cities of to fight over crumbs but to instead “try to grow the
T he Business Journal is published semi- Youngstown, Warren and Niles, and the Western pie so that everybody can have a bigger piece.”
monthly (twice a month) in Youngstown, Ohio. Reserve Building & Construction Trades Council. DeLeon herself remarked that the regional coop-
Copyright 2009 by Youngstown Publishing Co. At a news conference Nov. 23 in Niles, the West- eration she has seen taking place here is one factor
ern Reserve Port Authority formally announced the that sparked her interest in the position.
All rights reserved. Reproduction or use, with- hiring of Rose Ann DeLeon as its new executive Not too long ago, the kind of cooperation that led
out written permission, of editorial or graphic director. In the newly created position, DeLeon will to the creation of this position would have been all
content in any manner is prohibited. use the unique tools afforded port authorities under but inconceivable for parochially minded politicians
Ohio law – such as the ability to issue tax-free bonds more interested in protecting their turf – unmindful
Average Issue Readership: 45,000
and the foreign trade zone at Youngstown-Warren of the diminishing value of their fiefs. Just getting
Mail Subscription Rates: $42 for 12 months; Regional Airport – to help put together packages that them to work together is one thing; convincing them
$77 for 24 months; $96 for 36 months. attract new businesses to the area and the companies to spend money to fund this position – a choice not
Back Issues: If available, $4.75 apiece already here fund their expansions. easy to make given the crunch governments face – is
prepaid (mailed); $3.25 apiece prepaid For the past 16 years, DeLeon has worked at the nothing short of extraordinary.
(picked up at our office). Cleveland-Cuyahoga County Port Authority where Ryan, who began spearheading this effort more
she played a key role in shaping its development than two years ago, deserves considerable credit
Submission Policy: News articles and photographs
programs. She was chosen following a search by a for making this is a reality. It’s hard to imagine any
may be submitted but cannot be returned. We reserve
the right to select and edit all articles and letters.
nationally recognized executive placement company other elected official in the recent past who could
All submissions become the editorial property of The to find qualified candidates instead of simply looking have marshaled – not threatened or coerced – the
Business Journal. Submissions may be edited and for an available candidate within the community. necessary support and commitment from Valley
may be published or re-used in any medium including Such an approach – one where the candidates’ po- governments.
Business Journal television and radio reports and the litical connections likely would have weight equal Ideally, this type of cooperation – and the success
Daily Business Journal Online. to (or greater than) any qualifications they might we hope will result – will become the norm in the
Locally owned by the have – would have reduced the post to a patronage Mahoning Valley, and the weeks-long imbroglio that
job. That’s an example of the tired thinking that has threatened to doom its bid for V&M Star Steel’s pro-
Youngstown Publishing Co. held this Valley back so long. posed expansion – an increasingly rare exception.
The Business Journal DECEMBER 2009 17

BY LOUIS A. ZONA

Impressions
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Ads that Live in Memory


‘Where’s the beef?’ that year in a debate asking the same
question about his platform. The
over stupid jingles. question caught on among candidates ����
of both parties as they used the line ��������

E
arlier this year, advertising to accuse their opponents of having �������
executives determined the most no substance. ����������� ����������������
effective advertising slogan of Sales of Wendy’s old-fashioned �������
all time. The winner is, drum roll hamburgers shot up 31% but Mondale �������������
please, “Diamonds Are Forever.” lost to Ronald Reagan in a landslide ��������������
Who am I to argue with the people that November. ������������� �������������
who should know When I was
t h e i r b u s i n e s s ‘Splash, splash, fizz, fizz, oh, in grade school, �������������� ������������
best? My choice, Rege Cordic host- ��������������������
however, would be
what a relief it is.’ ed a very popu- ������������
�����������������
entirely different. lar morning radio
I have a small number of slogans I show on KDKA in Pittsburgh. Cordic ������������ � ���������
think more deserving. (I’m sure you loved to write slogans for products
do, too.)
For example, the Wendy’s com-
both real and those he created in
his imagination. My favorite was,
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� �������������
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mercial that first aired in January “Make life great – with monosodium
1984, in which an elderly customer, glutamate.” Then he’d pitch a beer � ����������������������� � ��������������������
played by 81-year-old Claire Peller,
saw a friend open her burger at Home
called “Old Frothingslosh.” Its tagline
was, “It’s the pale stale ale with the
��������������
of the Big Bun and asked three times, foam on the bottom.” �����������������������������������������������������
“Where’s the beef?” That one just Speaking of often-quoted taglines,
might be my favorite. sales of Alka-Seltzer spiked when it
It was so popular that former Vice put a man in a TV ad moaning, “I can’t
President Walter Mondale, seek- believe I ate the whole thing!” That’s
ing the Democratic nomination for always a favorite at Thanksgiving
president, zinged Sen. Gary Hart later See ZONA, page 18

BY ANDREA WOOD

Commentary
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Catch Our Daily Buzz ��������������������������


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W hen we set out on our


journey a quarter century
ago, we had no idea the
itinerary would, with a twist, lead
back to television.
mini-television studio, bought video
cameras and editing stations, and
hired and trained staff managed by
veteran TV anchor and producer Sta-
cia Erdos. Now we’re “webcasting” a
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�������������������������
At the time, 1984, our mission news program – all without having ���������������������������
was to resist the incessant coverage to invest tens of millions of dollars to ������������������������
elsewhere of the death of steel. Years build and equip our own TV station ���������������������������
after we reported how mini-mills took and pay staff to transmit broadcast sig- ������������������
the steel industry’s most profitable nals over the air. It’s our version of the ������������
products – but not its antiquated, mini-mill and it comes as the newspa- �������������������������
high-cost manufacturing and labor per and broadcasting industries suffer
structures – we find ourselves becom- big drops in ad revenues, circulation
ing a journalistic mini-mill. and local news audiences – and we
The analogy relates to the debut employ cost-efficient technology to
Nov. 16 of the BusinessJournalDaily better serve our business-to-business
Buzz, our newscast we post at Busi-
nessJournalDaily.com about the time
you return from lunch.
target market.
And so, as we near the end of our
25th anniversary year, we, too, find
�������������������������������
In the last few months we built a See WOOD, page 18 ������������������� �� ����������������� �� ������������� �� ��������������������
18 DECEMBER 2009 The Business Journal

Zona: Advertisements that Live in Memory


From Page 17 to remember its song, “I’m Buster United Airlines’ “Fly the Friendly Than it does practice.
as is Speedy Alka-Seltzer singing, Brown, I live in a shoe. That’s my dog, Skies of United.” Burma Shave.
“Splash, splash, fizz, fizz, oh, what a Tige, look for him in there, too.” But of all the advertising slogans Ray Johnson at the Butler Institute
relief it is.” A friend who grew up in Chica- ever created, my sentimental favorite of American Art remembers,
The cola wars have produced go remembers the Red Goose Shoes is Burma Shave. For those old enough Doesn’t kiss you
memorable slogans including, “Coke. slogan, “Half the fun of having feet is to remember this country before Like she useter
It’s the real thing” and “The Pepsi Red Goose Shoes.” President Eisenhower began linking Perhaps she’s seen
Generation.” In the 1950s, Coke Also from my boyhood came the this country with the interstate super- A smoother rooster.
ruled the roost. So Pepsi fought back famous Ivory soap taglines that “It’s highways, Burma Shave promoted its Burma Shave.
with lower prices and a bigger bottle. I 99 and 44/100% pure” – whatever shaving soap in verse on five red-and- Between cell phone calls, texting,
loved Pepsi’s jingle, “Pepsi Cola hits that meant – and “It floats.” Back then white signs spaced along rural roads Game Boys, DVDs and iPods, neither
the spot. Twelve full ounces, that’s more people took baths in tubs than every eighth of a mile or so and all the driver nor his passengers pay at-
a lot!” Hard to believe in this age of showered, so I guess the floating thing ended with “Burma Shave.” tention to what’s going on outside the
Big Gulps that the Cokes served our must have been a clinching reason Families on a leisurely Sunday car anymore. So here goes:
soldiers during World War II came in to buy Ivory. And everybody who afternoon drives loved to guess what Diamonds are forever
6-ounce bottles. watched early television remembers the next sign would say. The one that The ad men say
Over the years, television ads have the men’s hair grease, “Brylcreem, a I still chuckle about went: But “Where’s the beef?” is stellar
made memorable the faces, if not little dab’ll do you.” To kiss a mug And here to stay.
names, of character actors. Mr. Whip- Back then, we didn’t think of it as That’s like a cactus Burma Shave.
ple, played by Dick Wilson, reminded “that greasy kid stuff” as Vitalis sneer- Takes more nerve
customers, “Please don’t squeeze the ingly described it by having a veteran
Charmin.” Rosie the waitress, played
by Nancy Walker, demonstrated in a
athlete ask a rookie, “You still using
that greasy kid stuff?”
Wood: Catch Our Daily Buzz
diner that Bounty paper towels are the When former First Lady Laura From Page 17 Our daily edition is online cover-
“quicker picker-upper.” Bush riffed on the Las Vegas slogan, ourselves in the midst of a restructur- age of breaking business news, three
Before that, each week Dinah Shore “What happens in Las Vegas stays in ing – not through Chapter 11, down- headlines from which are sent to
sang, “See the USA in your Chevrolet. Las Vegas,” that showed what a great sizing or moving jobs offshore, but e-mail subscribers shortly before 8
America’s the greatest land of all.” line it was. And I liked it when former by adding new products for readers, a.m. every business day (our third
Miller Lite got a lot of mileage out New York Gov. Mario Cuomo sang, viewers and advertisers. product). The BusinessJournalDaily
of retired professional football play- “I love New York.” State tourism de- Did I mention we’re having fun? Buzz is our newscast, the fourth
ers and coaches shouting that beer partments have spent a lot of money For me, it’s a return to my roots product and the one we launched Nov.
as “Less filling,” while retired Major to develop slogans on why visitors in broadcasting as a cub reporter at 16. It’s an updated video summary of
League Baseball players shouted back, should visit their states. WYTV, then anchor and executive local, regional and national business
“Tastes great.” The classiest has to be “Illinois, producer. One more personal aside: news posted online and sent to e-mail
My all-time, least-favorite slogan Land of Lincoln.” Ohio’s isn’t bad: Stacia anchored the news longer than subscribers to watch when they return
was produced for Wrigley’s Double- “Ohio, the Heart of It All.” Then there’s any woman at WYTV (nine years). from lunch.
mint gum and sung by twin girls, “West Virginia, Wild and Wonderful,” Our quandary is how to distinguish We hope you’ll read both our print
“Double your pleasure, double your which has a certain energy. “Virginia four separate news products and con- and daily online editions and watch
fun, with Doublemint, Doublemint, Is for Lovers” has a certain appeal – it’s vey to readers and viewers that they our newscasts. Our goal is to present
Doublemint gum.” Ugh! been much copied – but “You have a need to read and watch all four to be comprehensive coverage of business
Those Mad men on Madison friend in Pennsylvania” was wasted fully informed about business news news in convenient formats without
Avenue back in the ’50s must have money. As a Pennsylvanian, I think in our region. redundant content. Thank you for
laughed as they slapped each other “Pennsylvania, land of taxes” would BusinessJournalDaily.com is differ- helping us grow, diversify, innovate
on the back and told themselves, be more appropriate. ent from our print edition, which pub- and continue to tell your business
“This one is so stupid that it will be While I’ve always liked Morton lishes in-depth “enterprise” stories we community’s many positive stories.
remembered forever.” Unfortunately, Salt’s “When it rains, it pours” and initiate based on information gleaned
I still remember it. Sherwin-Williams Paints’ “Cover the from our sources, angles determined The author, Andrea Wood, is president of the
When I was a boy, my mother liked Earth,” the former Eastern Airlines, by particular industry themes and Youngstown Publishing Co. and publisher of
to buy me Buster Brown shoes. I won- “The Wings of Man” was a stroke of perspective pieces that go well beyond The Business Journal and BusinessJournal-
der how many people are old enough advertising genius, much better than sound bites. Daily.com.

Jameson Place – The Region’s Premiere Personal Care Facility


3345 Wilmington Rd., New Castle, Pa. 16105 • 724-598-3421 • www.jamesonhealth.org
The Business Journal DECEMBER 2009 19

YOUNGSTOWN - WARREN

Regional Chamber Report


Events Are More than
Wienies and Martinis
By Kim Gonda
Regional Chamber Vice President of alty Tower in downtown Youngstown
when we heard the Frangos Group
Marketing & Business Services was renovating the entire building
Many years for apartments. This summer, we
ago, the Regional held an event for the public to wander
Chamber was ac- through and marvel at these beauti-
cused of being ful new residences (truly a first for
all about “wien- the city).
ies and martinis” • Ed Muransky renovated the

���������������
by some people former Fonderlac Country Club in
who, perhaps, Poland, and when we started talking
didn’t have a clear about hosting an event at his new Lake

Write����������
understanding of Club, we were simply wowed by all as-
what this organization does. pects of the facility, from the great food
I wasn’t an employee of the cham- and spacious locker rooms, to the gor-
ber at that time, but I suppose that geous furniture and breathtaking view
phrase was in reference to our busi- from the floor-to-ceiling windows and
ness-after-hours events, which were balcony of the second-story banquet
social in nature. I chuckle when I
hear those words, because if you
room. In August, our members were
able to share the awe of the Lake Club
����������������������������
read these columns or watch or read at our after-hours event.
• Just last week, we held an after-
�������������������������
the news regularly, you know the
Regional Chamber for years has been hours event at the Holiday Inn-Board- �����������������������
– and continues to be – at the fore-
front of economic development in
man, which has repeatedly received
the chain’s most prestigious award for ����������������������������
our Valley.
But getting back to this “wienies
being one of the best hotels under the
brand. The hotel recently renovated ������������������������
and martinis” thing from a program guest rooms, lighting, signage and its
standpoint, if I may. Hosting more conference center that many people
than 100 programs each year, the use for business and social meetings.
chamber offers a variety of events, Renovations like these let people
all of which are opportunities for our know that even businesses that have
members to learn about everything been around for decades continue to
from safety, human resources and invest, reinvent and grow.
marketing matters to what’s going on On Dec. 9, we will have our most
in our communities, our economy, festive after-hours of the year at the
schools and much more. 90-year-old, world-renowned Butler
The after-hours events that we
held just this year alone offered more
Institute of American Art. There’s
always a new exhibit to see at the
������������������������
than just appetizers and cocktails. Butler, and if you haven’t been there ������������������������������
They showcased some of the Valley’s
gems and hundreds of thousands of
since your third-grade field trip,
there’s no better time to return. ����������������������
dollars of upgrades and renovations Celebrate the merriment of the holi-
made by companies that are dedi- days, enjoy an elegant spread (no
cated to the Youngstown-Warren area “wienies and martinis” here) by An-
– investments in our community and tone’s and after taking a look around
overall contributions to improving at this jewel of a facility, remember
our economy. why we’re all fortunate to call our
Our after-hours events are designed Valley home.
for guests to network, of course. But **Special note to Regional Cham- ��������������������������������������������������������
the locations for these events also ber members: If you wish to showcase ���������������������������������������
show off our members’ facilities and your facilities or services and can host ��������������������������������
services, increasing their exposure to a few hundred people at your location,
the business community (hundreds
typically attend these events):
give us a call; we’d love to consider
hosting an after-hours event with you
�������������������
• We were all curious about the Re- at a future date.
20 DECEMBER 2009 The Business Journal

November 25,
2009 Interest Rates CERTIFICATES OF DEPOSIT PASSBOOK
STATEMENT
FINANCIAL INSTITUTION ANNUAL
SAVINGS
TERM PERCENTAGE YIELD,
2-Week Trend APY*

CF BANK (formerly Central Federal S&L) 1 Year 1.50  .10/


Wellsville 24 Mos. 1.75  N.A.

CHARTER ONE BANK 12 Mos. .40 — N.A./


5 Year 2.50  .05

CONSUMERS NATIONAL BANK 12 Mos. .60 — .10/


Salem 4 Year 2.50 — .18

CORTLAND BANKS 1 Year .75 — .50/


Cortland 5 Year 2.50 — .25

E.S.B. BANK 1 Year .90 — .30/


Ellwood City, Pa. 4 Year 2.25 — .30

FARMERS NATIONAL BANK 1 Year .85 — .10/


Canfield 4 Year 1.90 — .25

FIRST MERIT BANK 1 Year .45 — N.A./


New Castle, Pa. 2 Year 1.00 — .05

FIRST NATIONAL BANK OF PA. 1 Year .50 — N.A./


Hermitage, Pa. 5 Year 2.25 — .10

1ST NATIONAL COMMUNITY BANK 1 Year 1.00 — .20/


2.38 
real estate auction
East Liverpool 37 Mos. .40

FIRST PLACE BANK 6 Mos. .45 — .25/


Boardman 12 Mos. 1.00 — .25

HOME FEDERAL 1 Year 1.00  .50/


Niles 3 Year 2.02 — .60

1.00 
Nominal Opening Bid: $25,000
HERMITAGE, PA • 1680 N Hermitage Rd
A 81,980+/- sf (1.88+/- ac) parcel located HOME SAVINGS 12 Mos. Minimum $500 .35/
in a growing commercial corridor. The land
is situated at a signalized intersection, with
Youngstown 5 Year 2.75  .35
frontage and access to two well traveled Minimum $500
thoroughfares.
Inspections: Please view at your convenience
during daylight hours. HUNTINGTON BANK 1 Year 1.10 — N.A./
Sells: 5pm, Tue, Dec 8th Youngstown 4 Year 2.75 — N.A.
Dan Falls
williamsauction.com/riteaid 918.362.6558
williamsauction.com/riteaid KEYBANK 1 Year .15 — N.A./
.85 
PA AUC LIC AU005417 MONTE W LOWDERMAN AUCTIONEER, W&W AUC LIC AY001966
Youngstown 3 Year .45
Youngstown Business Journal Daily
4.5 x 2.625
5 Year 1.85 

Since 1965 MIDDLEFIELD BANKING COMPANY 1 Year 1.15 — .50/


Cortland 13 Mos. 1.91 — .75
2 Year 1.91 —

PNC BANK 1 Year .75  N.A./


Youngstown 48 Mos. 1.25 — N.A.
• Executive Search & Recruiting
• Outplacement: Individual or Group PNC BANK 1 Year .75 — N.A./
Conneaut Lake, Pa. 5 Year 1.55 — .05
• Temporary Staffing, Leasing & Payroll Services
• Financial Services: Benefits & Pensions US BANK (formerly Firstar Bank) 1 Year .40  N.A./
Boardman 59 Mos. 2.75  .10
5083 Market Street • Youngstown, Ohio 44512
330/ 788-4001 • FAX 330/ 783-3966 • www.callos.com • ytown@callos.com *Annual Percentage Yield Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.”
NPA - 350+Offices Worldwide Every effort is made to ensure the accuracy of The Business Journal compilations. Rates are subject to change without notice and should be
confirmed with the individual financial institution before entering into transactions. ©2009 Youngstown Publishing Co. All rights reserved.
The Business Journal DECEMBER 2009 21

BuildingWealth SPONSORED BY

Time to Consider Year-End Investment Moves


Taking time to make some course, but they’re worth reviewing at least once a year. the trade is a “wash sale,” and the tax loss will be disal-
strategic decisions before Your checkup also can help you decide whether it’s better lowed. The wash sale rule also applies if you buy an option,
December 31 can help keep to do any rebalancing before or after December 31. sell a stock short, or buy it through your spouse within 30
your portfolio on track and days before or after a sale of the same security.
potentially minimize your
Consider harvesting losses If you’re considering purchasing a mutual fund outside
Examine the tax consequences of any capital gains or
April income tax bill. of a tax-advantaged account, find out when the fund will
losses you’ve experienced this year. If you have realized
Review, rebalance distribute dividends or capital gains. Consider postponing
capital gains beyond any tax losses carried forward from
A portfolio review can action until after that date, which is often near year-end. If
previous years, you can sell losing positions – known as
tell you whether it’s time you buy just before the distribution, you’ll face potential
harvesting losses – to offset some or all of those gains. Any
to adjust your holdings. If taxes on that money, even if your own shares haven’t ap-
losses over and above the amount of your gains generally
one type of investment has preciated. If you plan to sell a fund, you may be able to
can be used to offset up to $3,000 of ordinary income
suffered, it might now be a minimize taxes by doing so before the distribution date.
($1,500 for a married person filing separately) or carried
lower share of your overall forward to offset future gains. Think about your cost basis
Andrew M. Moyer, CFP® assets than you intended, If you own a stock or fund and decide to unload some
Before selling an investment, consider how long you’ve
and could represent a buy- owned it. Assets held a year or less generate short-term shares, your cost basis can affect your tax liability. You can
ing opportunity. The traditional way to rebalance is to capital gains and are taxed as ordinary income. That tax use the average cost per share for a mutual fund. Or you
sell investments in an asset class that has done relatively rate could be as high as 35%, not including state taxes. could request that specific shares be sold– for example,
well and use the proceeds to buy others that will return Long-term capital gains on the sale of assets held for those bought at a certain price. Which shares you choose
your allocation to its intended balance. (Don’t forget tax more than a year generally are taxed at lower rates: 15% depends on whether you want to book capital losses to
considerations before rebalancing.) for most investors, 0% for individuals in the 10% and 15% offset gains, or keep gains to a minimum to reduce your tax
If you’re uncomfortable selling assets that have per- tax brackets (for 2009 and 2010). bite. (This applies only to shares in a taxable account.)
formed well, you could direct any new investments into
an asset class that now represents less of your portfolio Time trades carefully The information presented in this article is not investment advice.
than it should. Diversification and asset allocation don’t If you’re selling to harvest losses and intend to repur- Because each individual’s financial objectives and goals vary, always
guarantee a profit or protect against a possible loss, of chase the same security, wait at least 31 days. Otherwise, contact your financial adviser prior to making investment decisions.

Warren Office:
5200 E. Market St., Suite 6
Warren, Ohio 44484
Phone: 330.856.6345
Planning for Today’s Lifestyle and Tomorrow’s Legacy
Akron Office:
90 North Miller Road
Balancing the dreams of tomorrow with the needs While we believe all individuals of wealth benefit
Akron, Ohio 44333 W3 Wealth advisors
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22 DECEMBER 2009 The Business Journal

November 25,
2009 Credit Union Rates
FINANCIAL CERTIFICATES OF DEPOSIT AUTO LOANS MORTGAGE LOANS
INSTITUTION Term APY Minimum Term Rate Type Down Payment Term Rate, 2-Wk Trend Fees

ASSOCIATED SCHOOL 1 Year 1.30 — $1,000 Up to 48 Mos. 5.70 Fixed 20% 15 Year 5.00 — 2+200
EMPLOYEES 2 Year 1.95 — $1,000 Up to 60 Mos. 6.20 Fixed 20% 20 Year 5.25 — 2+200

FIRST CHOICE COMMUNITY 1 Year 1.65  $500 Up to 48 Mos. 5.65 Fixed 20% 15 Year 5.50 — 0+costs
(formerly RMI CO. EMPLOYEES) 2 Year 2.10  $500 Up to 60 Mos. 5.65

OHIO EDISON/ 1 Year 1.55 — $1,000 Up to 48 Mos. 5.70 Fixed 5% 15 Year 4.625 — 0+costs
PENN POWER 2 Year 1.90 — $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 5.125 — 0+costs

SEVEN SEVENTEEN 1 Year .90  $1,000 Up to 48 Mos. 5.99 Fixed 5% 15 Year 4.25  0+costs
2 Year 1.55  $1,000 Up to 60 Mos. 5.99 Fixed 5% 30 Year 4.875  0+costs

STRUTHERS FEDERAL 1 Year 1.00 — $1,000 Up to 48 Mos. 6.00 N.A. N.A. N.A. N.A.
2 Year 1.51 — $1,000 Up to 66 Mos. 6.00

YOUNGSTOWN CITY 1 Year 1.25 — $2,000 Up to 60 Mos. 5.75


EMPLOYEES FEDERAL 2 Year 1.65 — $2,000 Up to 72 Mos. 6.99 N.A. N.A. N.A. N.A.

Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.” Rates are subject to change without notice and should be confirmed before entering into transactions.
©2009 Youngstown Publishing Co. All rights reserved.

Celebrating ����������

50 Years
����������������
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1959 - 2009 �������������������������������������������
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� � � � � �� � � � � � � � � � � � � � � � � � � � � � � � � � � �
The Business Journal DECEMBER 2009 23

Think globally.
BY STACIA ERDOS

Media Scope
Listen locally.
New Technology Puts
WYSU 88.5 FM
Squeeze on Santa � ����������������������
� �����������������������
Y ou’d think the older I get, the
shorter my list would be for
Santa Claus. But it’s actually
the opposite. The more technology
changes, the more I’m in a race against
be a 9.7-inch OLED touch-screen
handheld all-in-one device that is half
iPhone, half Mac computer (what?).
It’s supposedly an e-reader, gaming
device, music player on which you can
� �������������������������
time, determined not be left behind as
gadget after gadget changes how we
also watch TV and movies and surf the
Web. Analysts are saying the device
� �����������������������������
live our lives.
For instance, I don’t have a laptop,
could revolutionize the handheld
world the way the iPhone changed the
� �������������������
or a GPS, or satellite radio, or even a smart-phone market. How much will
digital home video it set you back?
camera. (I still use Sales of Sony’s e-reader touch Sources estimate
those mini VHS edition are exceeding expecta- f r o m $ 1 , 2 0 0
tapes.) And now
it seems there are
tions as Sony tries to narrow the to $1,700. Stay
tuned. Radio you need to know.
a couple more hot gap with the Kindle. Now to some
items to add to my
“eventually” list for the Jolly Ole
other news notes
from the media world: Readership www.WYSU.org
Soul. is up for business publications. Me-
First, the e-reader. For those who diamark Research and Intelligence
aren’t familiar with them, they’re ba- reports The Wall Street Journal saw
sically a handheld device that allows
you to download and read books,
its audience grow 11.6% over the last
year. Forbes is up 11.5% and Fortune’s ����������������������������������
magazines and newspapers digitally. rose 9%. Mediaweek points out that
Demand has heated up for the holi- while national business publications �����������������
���������������
days and they’re already becoming have been decimated in terms of ad
scarce. Barnes & Noble says Sony’s spending, advertisers who pulled out
Nook, the $260 e-reader released last may have missed a big opportunity to

��������������
month, is out of stock until January. reach their target audience.
And Bloomberg.com is reporting Twitter plans to start an ad busi-
that sales of Sony’s e-reader touch ness early next year. The site already
edition are exceeding expectations as generates more than $4 million in an-
Sony tries to narrow the gap with the nual sales. And celebrities are signing
Kindle. Research firm Gartner Inc. up for a new viral marketing strategy
predicts e-book readers will become involving Twitter set up by a Los
popular among mainstream consum- Angeles ad agency. It amounts to
ers next year. Some say by 2012 more endorsement deals for their Twitter ���� ����
than 18 million electronic book de- accounts. Offers are based on the �������� ��������������
vices will be sold.
There are no e-readers involved,
number of followers the star has for
his twitter stream.
�����������

������ �
������ ������������
but students at Penn State are among And finally, one of the big dif-
the first to take part in a USA Today
initiative to test how students respond
ferences I notice watching the news
here in Ohio is seeing video of court
����������
to electronic versions of printed proceedings. In Pennsylvania cameras �����������������
newspapers. The e-edition is free to aren’t allowed in the courtroom. And
students, faculty and staff who go to now in Georgia, neither are tweets.
the e-edition site each day or sign up A federal judge has ruled the Co-
for a daily e-mail. lumbus Ledger-Enquirer can’t post
Now for gadget No. 2, which I
won’t have to add to my list until next
year because the release of Apple’s new
Twitter updates in a drug trafficking
trial. U.S. District Court Judge Clay
Land found that tweeting is a form
������������
top-secret tablet PC has been delayed.
Some are already calling it the coolest
device ever and Apple hasn’t unveiled
of broadcasting. So I guess it’s back
to the good ole pencil and reporter’s
notebook – which, by the way, Santa
������������
����������������� ����������������
it or even confirmed it. – also make excellent and inexpensive ������������������������������������������������������������
The new mini PC is rumored to stocking stuffers.
24 DECEMBER 2009 The Business Journal

�����������������
BY MONNIE RYAN

Wire Service
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���������������������
Gift-Giving Starts Online
����������������������� Compare prices before MasterCard or Visa. Does the recipi-
heading to ‘real’ store. ent live far away? Have your gift card
delivered electronically.

B
y most accounts, the Grinch But why not give yourself a gift in
is alive and well during this the process? Head to GiantEagle.com,
holiday season as cash-strapped register, and sign up for a Giant Eagle
consumers cut back (or at best keep Advantage Card. Then, go to the Gift
spending at 2008 levels). Card section online – or to a Giant
My husband and I are looking at Eagle supermarket – and buy the cards
paring down the names on our gift list you want. For every $50 you spend,
as well as creative – and less expensive you’ll save 10 cents per gallon at any
– ways to please the recipients who of the company’s GetGo stations.
are still on it. Exchanging gag gifts can be a
In so doing, I’m less expensive al-
��������������� �������������������� putting the Inter- The big yuk-yuks for me happen ternative to the
����������������������������������� net to work. Even at Stupid.com. If you’re into gag usual sweaters and
if I plan to buy neckties that ev-
in a “real” store, I gifts, go see for yourself. erybody has too
don’t leave home many of anyway.
without knowing what price range One of my favorite sites is AsSeenOn
constitutes a good deal. For that, I’ll TV.com. Here, you’ll find all those
do some online price checks. amazing gadgets, but without the
Our son-in-law, for instance, screeching announcer and the “But
would like a GPS navigation system wait, there’s more…”
– portable enough to use in the car and Actually, many of these products
stash in his Harley saddlebags when are quite useful; I’m quite pleased
he hits the road in the summer. with my Debbie Meyer GreenBags,
Since I have a couple of models for instance. But gosh, who wouldn’t
in mind, I’ll hit the Internet road. love a nostalgic Retro Series Hot Dogs
��������������� ��������������������������� My first stop will be at Amazon.com, cooker that “Rocks N Rolls While It
which has great prices as well as Cooks?” Or what about a Drop Stop
��������������������������������������������������� complete product descriptions, tech- – gizmos that fill in the spaces between
����������������������������������������� nical specifications and reviews from your car seat and console that help
buyers. Next up, I’ll head to Bizrate. keep dropped coins, cell phones, pens
com, Pricegrabber.com, Nextag.com, and other good stuff from getting lost
Dealtime.com or Pricewatch.com. In down the car seat crack.
addition to showing who’s got the best The big yuk-yuks for me happen
price (and whether shipping and sales at Stupid.com. If you’re into gag gifts,
tax apply), most of these sites offer go see for yourself. Trust me, there’s
customer reviews of both the products something for everyone here – includ-
and the online sellers. ing “cheap stuff under $7.”
Of course, I can buy online if I Never underestimate gifts you’ve
want; but if I’d rather buy in a store, created yourself. For a friend’s birth-
I’ll know a good deal when I see it. day, I found a recent photo I’d taken of
Checking online first also can save her, then headed to Stamps.com and
time. Running from store to store uploaded it to a sheet of 20 real, usable
��������������� �������������������� to find the new ValvaMax Megazord postage stamps ($18.99 for first-class
my grandson can’t live without could letter postage stamps plus shipping).
����������������������������������������������� have cost serious gas money had I not Once my order arrived, I framed the
�������������������� searched for it online and learned that sheet, wrapped it up and watched her
nobody has it yet. eyes light up as she opened it.
Although gift cards are hardly what Other photo options are calendars
��������������������� I’d call creative, they’re almost always
appreciated – after all, the recipient
and personalized photo books. For
these, I’m a big fan of Mpix.com; the
������������������������������������������� is the one doing the choosing. These, prices tend to be a bit higher here,
too, can be purchased online with ease but the quality is outstanding. Other
�������������� at Giftcards.com and Giftcardmall. sites I’ve used include Snapfish.com,
com, where you can pick your pre- Shutterfly.com, Picaboo.com, Kodak
ferred retailer or a “one size fits all” Gallery.com and Walgreens.com.
The Business Journal DECEMBER 2009 25

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The Business Journal DECEMBER 2009 27

Pages 27-30 BankingIndustry


Cortland Bancorp Targets Profitability
The bank expects to exceed $4 ginal expectation to grow loan areas,” he says.
Cortland will “really focus on our core opera-
million in profits in 2010 by ex- tions,” Gasior continues. “We’re going to find ways
to become more efficient.”
tending credit to small business. To that end, Cortland laid off 12 employees Nov.
1 because they were “duplicative. We’ve eliminated
By Dennis LaRue duplication,” Gasior says. “We’re geared at looking
at efficiencies of technology,” which includes remote

D
espite losing nearly $7 million the first nine deposit capture that has reduced the need for some
months of this year, including nearly $1 employees.
million the third quarter, Cortland Bancorp Moving its office in southern Boardman to North
expects to return to profitability in 2010, its new Lima has benefited Cortland. “We’ve increased both
CEO, Jim Gasior, says. loans and deposits,” Gasior reports. Cortland has
Gasior, who succeeds Larry Fantauzzi as head kept most of its customers in Boardman, drawn
of this community bank with nearly a half-billion new customers from North Lima and even attracted
dollars in assets, doesn’t blink at the challenges a small number of new customers from Canfield,
his bank faces. These include operating under a he says.
memorandum of understanding with the Federal What tripped Cortland Bancorp up were the
Reserve Bank of Cleveland that prohibits the bank CDOs – collateralized debt obligations – in which
from paying cash dividends. it invested between 2004 and 2007. As with other
“We’re focusing on getting back to the mid-fours financial institutions, new accounting rules com-
[$4 million in profits] in 2010 by doing what this pelled Cortland to mark them to market, marking
bank was built on,” the CEO says, meaning extend- Jim Gasior, CEO of Cortland Bancorp, says his company’s losses down 31 of the 32 it acquired. On the investment
ing credit to small businesses, including commercial resulted from investments that turned sour. securities it held or is holding to maturity, the es-
real estate. ago and $337,000 for the first nine months vis-à-vis timated fair value was $34.84 million at Sept. 30
Indeed, Cortland is unusual in that its woes $495,000 the first three quarters of 2008. where that figure stood at $71.21 million at Dec.
resulted not from bad loans but investments that Most financial observers would consider these 31, the 10-Q says.
seemed to carry minimal risk but turned sour. numbers praiseworthy for a bank with $498.38 Such securities, Cortland notes, “are evalu-
In its most recent 10-Q filing, for the quarter million in assets. ated periodically to determine whether a decline in
ended Sept. 30, with the Securities and Exchange Where most banks “have a loan-to-deposit ratio their value is other than temporary [meaning] the
Commission, Cortland’s ratio of annualized net of 70 to 90%, we have 50 to 55%,” Gasior notes, and prospect for recovery is not necessarily favorable.”
charge-offs to average loans outstanding should be its lenders have taken pains to ensure loan quality. In some instances, Gasior explains, the issuer has
the envy of most other banks, 0.49% for the quarter “We’ll continue to focus on consumer loans, com- a delayed payment of dividends or interest, which
ended Sept. 30 and 0.23% for the first nine months mercial loans, commercial real estate,” Gasior says. in turn causes the value of the security to fall. “An
of 2009. While the 0.49% is higher than the third “We’ll sell [residential] mortgages in the secondary issuer can defer [payment of] dividends up to 60
quarter of 2008’s 0.11%, the year-to-date statistic is market. I don’t see anything substantial changing.” months,” Gasior says, if it lacks the means to pay
lower than the figure, 0.31%, for the same period He sees potential in lending to the Amish since as scheduled.
a year ago. Cortland entered the Middlefield market last year. Some securities were debt issued by other banks
Net charge-offs for the third quarter were However, with the restraints on Cortland Banks’ and insurance companies during the housing
$288,000 vis-à-vis $64,000 the same period a year capital, “We’re looking at going into 2010 with mar- See CORTLAND BANCORP, page 28

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28 DECEMBER 2009 The Business Journal

Cortland Bancorp:
Direct Deposit (ACH) Payroll Services From Page 27
bubble. Some was preferred stock issued by the Fed-
eral National Mortgage Association (Fannie Mae)
“A 50% cost savings as a result of choosing Seven Seventeen Credit Union...” and Federal Home Loan Mortgage Corp. (Freddie
Mac), the latter seized by the federal government in


September 2008 and since overseen by the Federal
Lakeview Local School District realized a Housing Finance Agency. Others were “high-grade
50% cost savings as a result of choosing Seven municipals,” said Roger Platt, interim CEO after
Seventeen Credit Union as our local provider Fantauzzi resigned.
Two of the 32 issues were General Motors Corpo-
of Direct Deposit services. In addition to a
rate Securities, today worthless since GM declared
lower fee structure for the Direct Deposit bankruptcy. “Who ever thought GM notes would
service, no set up charges were involved, and go bad?” Platt said in late September after the board
the transition was easy and convenient. Our asked him to return as interim CEO.
system generates a payroll file that we upload In its 10-Q, Cortland said, “At Sept. 30, the
company recognized $815,000 of other-than-tem-
directly to Seven Seventeen’s secure server
porary-impairment losses attributable to its General
(without the need for a secondary processor). Motors Corporate Securities with a cost base of
Seven Seventeen handled the set up work $2.35 million.”

establish Direct Deposit accounts.


��
and offered incentives for the employees to
Milton A. Williams
Treasurer, Lakeview Local School District
In total, for the first nine months, Cortland rec-
ognized other-than-temporary impairment of $13.38
— Milton A. Williams,Treasurer million of which $10.93 million was recognized in
Cortland, OH the first two quarters as other than temporary at-
tributable to 16 CDOs with a cost basis of $19.12


million, its 10-Q filing says.
Are paper paychecks giving you a headache? Some of the CDOs will regain some of the value
The Direct Deposit
��
program is awesome and they lost, both Platt and Gasior say, and will pay
Are you tired of paying large Direct so is everyone at Seven
off in full but behind schedule. Said Platt of the
CDOs, “We never bought any before [Fantauzzi]
Deposit fees to your financial institution? Seventeen Credit Union! and haven’t since.”
– Margie Malone, Office Manager, Despite its setbacks, Cortland Bancorp qualified
� Pay your employees without traditional Wollam Chevrolet, Cortland, OH as “well-capitalized,” Gasior states.
paper checks, a savings of approximately $1.25


�� “We’re not going to close,” Platt stressed last
per paycheck. The setup of Seven Seventeen’s September, and he offered that he expects Cortland
to post a profit this quarter. “Jim Gasior and Tim
� Payroll is electronically transferred to your Direct Deposit program is so Carney are running the bank on a day-to-day basis,”
employee’s financial institution(s) of choice. quick and easy! he continued. “They’re doing the heavy work.”
– Helen Dolan, Office Manager, Carney was named executive vice president of
� Submit your payroll only one day in advance of the
Miller Bearing, Kent, OH the bank and Cortland Bancorp when Gasior was
pay date.
tapped as CEO.


� No special software needed. Just email an Excel Gasior did not say whether he expects Cortland
spreadsheet or a file from your existing payroll Seven Seventeen’s Direct to show a profit for the fourth quarter, saying only
software system (if applicable). We’ll take care of Deposit program is very easy.�� he expects a return to profitability next year.
Even the employees that were As to whether Cortland will create and sell more
the rest! hesitant about switching from stock to improve its capital position, Gasior won’t
� Low, business-friendly fees.* paper checks now love it! rule it out but gives the impression it’s unlikely to
– Gwen Fabian, Business Accounting happen. “Even with the impairments, we’re con-
� Secure, easy and fast. sidered well-capitalized at better than 13%,” he
Manager, Greenwood Chevrolet,
Austintown, OH says. And getting back on track and returning to
We also offer: its traditional levels of profitability seems the best
course of action.
� Commercial Loans He also expects to increase deposits. “We’ll grow
COMING SOON...
� Small Business Checking through deposit gathering and replace some borrow-
� Health Savings Accounts Payroll ing with deposits,” the CEO says. “We may shrink
our balance sheet before we grow it again.”
� CU@WORK! Cards! Helping Cortland regain its footing, Gasior says,
Business Made Easier. are loyal employees. “We have little turnover in our
*Ask for details. www.sscu.net staffing,” he notes. “And they know our customers
and give personalized service.”
Also important was Cortland’s hiring Nicole
Contact us for a free and easy cost estimate: Whitsel as its risk manager effective Oct. 1. Whitsel,
Business Partners in Boardman, Austintown, a certified financial services auditor, was employed
Youngstown,Vienna, Hubbard, Columbiana by the Cleveland office of Crowe Horwath, a public
Business Product Sales in Mahoning, County & surrounding areas: accounting firm based in Indianapolis that focuses
Trumbull, Columbiana Counties: Chris Graham on serving the financial services industry.
Jeannette Bartko 330/372-8191 or Besides being a certified public accountant, Whit-
330/372-8025 330/726-0344 ext. 8191 sel earned her baccalaureate and master’s degree
jbartko@sscu.net cgraham@sscu.net in business administration from Youngstown State
University.
The Business Journal DECEMBER 2009 29

Lessons Learned Not Lost on Bankers


By Dennis LaRue
Washington Mutual Bank on the West Coast from money and a lot of it. And the bubbles [high-tech

T
he aftermath of last year’s financial near the FDIC after the Office of Thrift Supervision put and housing] were out there.”
meltdown continues to haunt the economy. it in receivership. “When these bubbles come along, nearly
Small-business owners complain that com- Bank of America acquired Merrill Lynch and everybody drinks the Kool-Aid,” Mayland says.
mercial banks are afraid to lend because they’re more even Goldman Sachs teetered before righting itself “When you prick a balloon with a pin, it pops.
concerned about preserving and increasing their and converting to a bank holding company so it The air doesn’t come gently out. ...What I didn’t
capital than extending credit. In the expectation that could enjoy the protections the Federal Reserve understand were the implications of that [housing]
Congress will create a Consumers Financial Protec- and Federal Deposit Insurance Corp. afford com- bubble bursting. I didn’t think [lenders] would
tion Agency, consumers with credit cards find that mercial banks. make mortgages without checking [the applicant’s]
banks have accelerated repayment terms, reduced What lessons had bankers learned, we asked. income.”
lines of credit, raised interest rates and increased What lessons were briefly learned but have receded Neither did Home Savings and Loan Co., First
the penalties for late payments. into the background as the financial system returns Place Bank nor Farmers National, McKay, Lewis
“The whole landscape has changed,” says Jim to firmer ground? What lessons should have been and Gulas are quick to point out. “Fortunately
Malz, president of Chase Bank’s northeastern Ohio learned that weren’t? Did the bankers interviewed for our area, we didn’t over extend here or else-
division. “We experienced the perfect storm.” have any second thoughts about accepting or not where,” Gulas says. Regardless, banks here didn’t
The Business Journal approached four commer- accepting Troubled Asset Relief Program funds? And escape the consequences of others’ faulty lending
cial bankers and an economist to ask what lessons what reforms should be enacted so the likelihood of practices on the West Coast, Florida, Nevada and
the financial services industry and federal govern- another meltdown is minimized? Arizona.
ment have learned since the U.S. Treasury Depart- We put these questions to John Gulas, chief Lenders went so far as to extend mortgages of
ment allowed the investment bank Lehman Brothers operating officer of Farmers National Bank, Can- 125% of the assessed value of a house, Mayland
to fail rather than offer a rescue package. field; Steve Lewis, CEO of First Place Bank, Warren; recalls, “until the Fed put a stop to that.”
The repercussions of Lehman’s closing persuaded Malz; Ken Mayland, former chief economist of The independent mortgage lenders, for the most
Treasury that Bear Stearns could not be allowed to KeyBank and today president of ClearView LLC, part unregulated, have since exited the market,
follow; JP Morgan Chase acquired that investment an economics consulting firm in Pepper Pike; and Gulas, Lewis and McKay note, leaving a depressed
bank for $10 a share in March 2008 although Chase Doug McKay, CEO of United Community Financial market to prudent lenders such as their institutions.
could have bought it for $2. Before the fire sale, Corp. “Ninety-four percent of problem [mortgages] did not
Bear Stearns’ 52-week high had reached $133.20. Everyone watched the housing bubble grow, all come from banks,” says Gulas, who recently wrote
The following September, Chase also acquired the agreed, never realizing the implications. “The fire a paper on the subject.
assets, secured debt obligations and deposits of was lit many years ago,” Malz says. “There was cheap See LESSONS, page 30


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30 DECEMBER 2009 The Business Journal

Lessons: Not Lost on Bankers


From Page 29 protection agency Congress is considering, saying for the existing agencies and promote a needed
“I don’t think mortgage brokers are going to get it would be “a monster agency” he fears would cohesion.
away with [shoddy practices] again,” McKay says “separate safety and soundness” from Congress’ Streamlining isn’t necessarily a virtue, Mayland
of efforts at regulatory reform. “They didn’t explain misguided efforts to protect consumers. says. Regulatory agencies often fall down on the
[to unqualified borrowers] variable-rate mortgages In addition, concentrating so much power “all job – see the Securities and Exchange Commission
and how rates are reset.” in one agency is dangerous.” As proposed, the and Bernie Madoff – and having a small number of
Lewis observes, “The term ‘bank’ was used Federal Reserve, Office of the Controller of the Cur- agencies with some overlap is a better guarantee of
generally when headline writers applied it to the rency, Office of Thrift Supervision and FDIC would detecting nonfeasance or malfeasance.
mortgage brokers. The mortgage brokers were not all cede some of their authority to the proposed “Balance is what we need to learn from this,”
watched closely enough and [excessive] subprime agency. Farmers’ Gulas says. He would have the regulatory
lending resulted.” Creating a super agency, UCFC’s McKay says, agencies treat smaller banks differently than the
Home Savings, First Place and Farmers have all “could help level the playing field, something that megabanks. “We must treat the larger institutions
tightened their credit criteria, their leaders say, but needs to be done and can be done. One agency has differently because of the risks [of failure] they im-
only to restore their standards to where they were to be created.” It could employ all those who work pose,” he asserts. McKay and Lewis agree.
before the bubble burst. “We have been prudent,”
says Farmers’ Gulas, “same as we’ve been the past
100 years. We’ve tightened a little bit and make it a
point to look for [potential] problems earlier on.”

Get it now. Use it later.


As the bubble grew, Chase’s Malz says, “Bankers
should have made the tough decisions not to make
[commercial and residential real estate] loans, even
though they knew the deal would be done in the
market.” That’s how Chase emerged almost un-
scathed, having repaid its TARP – Troubled Asset
Pay nothing until then!
Relief Program – funds to the Treasury Department
early, accepting them reluctantly.
It wasn’t that Chase wasn’t involved in subprime
lending indirectly. “We pulled out prior to the larger
collapse,” Malz says. “We restructured around that
a couple of years ahead of the others.”
What lit the fire, the bankers agree, was Congress’
goal of home ownership for nearly anyone who
wanted title to his own residence. U.S. Rep. Barney
Frank, D-Mass., chairman of the House banking Home Equity
committee, “is at the heart of this,” Lewis says.
“Now I believe in home ownership,” the CEO of
First Place continues, “but the view that everyone
Line of Credit
should own their own home is absurd. You had Fan- Limited-time rate special!
nie Mae [Federal National Mortgage Association]
and Freddie Mac [Federal Housing Finance Agency]
open the door to derivatives ... and the CDO [col-
lateralized debt obligations] market developed off Apply by December 31, 2009 to take advantage of ...
that. You had different risks and different parameters
that no one understood.”
Congress didn’t understand the economic im-
plications of encouraging greater home ownership,
Mayland says, when it allowed Fannie Mae and Fred-
die Mac to issue mortgage-backed securities. These
securities provided greater liquidity, their earnings 330.742.0500 l 1.888.822.4751
grew and the stock of both greatly appreciated. The
private mortgage sections of the investment banks
on Wall Street enjoyed tremendous profits.
The warnings some community banks sounded
were drowned out as gross domestic product rose,
Lewis says. “The economy steamed along and the
auto industry fueled that attitude [of buying more
car than a consumer could afford],” he says, “by
dragging out [payment] terms.”
Mayland finds bankers’ efforts to escape blame
disingenuous. “Everyone saw what was going on,”
he points out. “We all drank the Kool-Aid,” he re- 2009 WWR Outstanding Community Partner Award
peats, “and didn’t connect the dots.”
All agree that reforms are needed but differ on
what those reforms should be. *APR = Annual Percentage Rate. The APR is based on first lien position and will vary at prime rate plus .74%, as published in The Wall Street Journal (3.25% as of 10/1/09). The APR will
Lewis thinks the unregulated mortgage brokers never exceed 15% or be less than 3.99%. Minimum monthly payment is 1% of the outstanding balance or $100, whichever is greater. Loan term of 120 months. A balloon payment may
result. Must be single-family, owner-occupied residence. Maximum loan 85% of value. Annual fee of $50 is waived. Customer pays document preparation fee of $20 and recording costs
should be regulated before they’re allowed to re- of $60 plus $8 for each additional page, if needed. Rates subject to change. Property insurance required. Flood insurance required, if applicable. Other terms and conditions may apply. A
enter the market. “The regulatory structure for the tax advisor should be consulted regarding tax deductibility of interest. Offer expires 12/31/09.
regulated worked,” he says. Subsidiary of United Community Financial Corp. Equal Housing Lender Member FDIC homesavings.com
He’s against the proposed consumer financial
The Business Journal DECEMBER 2009 31

Recession Breaks Job Creation Promises


Tax Incentive Review Council Domestic Linen Co. Inc., for example, agreed
in December 2002 to create 100 jobs at the former
He cited success stories such as Fireline Inc. on
Andrews Avenue, M-7 Technologies at the Ohio
extends abatements. Tartan Uniforms building, 243 Belmont Ave. But just Works Park and Exal Corp., in Performance Place
32 were working there as of Dec. 31. The company industrial park, as examples of why these programs
By Dan O’Brien spent $3.3 million to renovate the building. should continue.

T
he board that oversees the city of Youngstown’s Companies participating in the enterprise zone Exal, he continued, has expanded six times and
enterprise zone program has agreed to agreements collectively have invested $352,790,193 has invested more than $66 million into its plant
continue tax incentives granted more than 30 in real and personal property and have created more here and created 365 jobs. “To me,” Sciortino said,
companies, even though some of these enterprises than 900 jobs, Sciortino said. “this is great stuff.”
are no longer in business or have failed to meet their
hiring or investment requirements.


�����������
The Tax Incentive Review Council recommended
continuing incentives to the 37 companies partici-
pating in the program because removing those in-

� �

centives could cause more harm to their operations
in a down economy, regardless of whether they’ve
lived up to their side of the agreement, members of
the council said.

������������������
“It’s a very powerful program,” said Mahoning
County Auditor Michael Sciortino, who serves as
chairman of the board, at its meeting Nov. 10. “I
can’t see the board declining anybody. We have to
do what we can to help these companies succeed.”
The city’s enterprise zone program makes avail-


able incentives to companies embarking on new �������������������������������������������
construction projects. In return, the company agrees ������������������������������� �������������������������������������������
to create a certain number of jobs and pledge a speci- ����������������������������� ��� �����������������������������������������������
fied amount of investment toward the project. ���������������������������������� �� �������������
Since the program began in the 1990s, busi- ������������������������������������������ ��� �������������������������������������������������
nesses entering enterprise zone agreements have � ��������������������������������������
�����������������������������������������
typically received a 75% tax break over 10 years on ��� �������������������������������������������������
�������� � ������������������������������
the amount invested in construction or personal
property. The state of Ohio has since phased out ��� �������������������������������������
������������������������������������
taxes on personal property. ��� �������������������������������������������
�����������������������������������������
Youngstown Finance Director Dave Bozanich ��� ����������������������������������������������������
said that each year companies are evaluated based ������������������ � ����������������
on whether they’ve complied with various criteria, ���������������� ���������������������������������
such as investment, job creation and the number of ��������� ��������������������
city residents, minorities and women hired. ������������ �� ���������������������������������������������������
� ������������������
The latest report is based on data provided by �������������
the companies covering 2008, Bozanich said. While �� ��������������������������������������������
��������� �� �������������������������������������������������
some of these businesses have fallen short on job
creation or investment because of the economy, it ������������ �� ��������������������������������������������������
would be even more devastating to enforce the letter ���� � ����������������������������
of the contracts in a tough economy, he argued. �� ������������������������������������������������������
The council also continued abatements on busi-
nesses that closed. Superior Chemical Products Co.,
�������������� � ����������������
�� �������������������������������������������������������
which constructed a $900,000 building at the Ohio
Works Business Park in 2007, closed last year. ������������� �� ���������������������������������������������������
�� ��������������������������������������������������

����������������
However, the company is trying to sell the build- � ������������
ing and is leasing space there, noted T. Sharon �� �����������������������������������
Woodberry, city economic development director.
Once the building is sold, any new company that �������� �������������������������������������������� ����������������������
moves there has the option of entering into an en- �� �������� ������������������������������������������������
����������� ��������������������������������������������
�������������������������
terprise zone agreement with the city and could then
assume the remainder of the Superior agreement. � ������� �������������������������������������������������� �������������������������
“It makes the building more marketable,” she
said.
Another company, Enviva Materials LLC, at 1130
Performance Place, consolidated its operations at
����������������������������
another site. According to the 2008 report, its en-
terprise zone agreement expired in February.
Meantime, other businesses awarded tax incen- �������������������
tives report that they’ve fallen well short of creating
the number of jobs promised in their initial agree- �������������������������������������������������������������������������������������������������
ments.
32 DECEMBER 2009 The Business Journal

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The Business Journal DECEMBER 2009 33

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34 DECEMBER 2009 The Business Journal

At the Crossroads of America! WARREN 11 TO NEW YORK



➺ TO CHICAGO 80 OH 80
IO
CLEVELAND EX
ITS
TU
RN Lordstown
215 PIK
&2 E
16
CSX
PA
TU
RN
NORFOLK & SOUTHERN AKRON PIK YOUNGSTOWN
76 E

11 76 TO PH
MBUS ILADE
COLU CANTON LPHIA
TO PITTSBURGH ➺

Lordstown

• 600 acres of land available zoned for industrial and commercial use
• Great residential sites available
• Village of 25 square miles has 4,000 residents
• Abundance of prime land priced low ready for new construction
• Great incentives for new business and industry
The growing Village of Lordstown is strategically Industrial developers are greatly impressed with the accommodating attitude
situated at the “Crossroads” of major Northeast that the Village of Lordstown has toward new business and industry...
transportation arteries. The Ohio Turnpike (I-80) and call, email or visit our web site for more information:
St. Rt. 45 pass through the village and I-76 passes
just south of the village and provide easy access for
regional and intercontinental motor freight firms.
Rail service is provided by both Norfolk Southern
www.lordstown.com
and CSX Railroad systems. 330-824-2510 email: PlanningZoning@LordstownVillage.com
The Business Journal DECEMBER 2009 35

RestorationIndustry
After Disaster Strikes, They Go to Work
Companies find niche in repair-
ing structures after fires, floods.
By George Nelson

T
o Paul Clouser, president and owner of
National Fire Repair in Youngstown, restoring
a home following some sort of disaster is more
than repairing a wall or getting furniture back in
shape to be used once again. “Really what you’re
doing is putting somebody’s life back together,”
he says.
National Fire Repair, one of several damage res-
toration companies doing business in the Mahoning
Valley, has been operating since 1913. The company
specializes in repairing damage caused by fire and
water. A typical job “really centers around the cus-
tomer,” Clouser says, and helping them to maintain
their existence in an entirely different manner than
they’re used to.
“Think about leaving your home one morning and
not being able to come back,” he continues. “Your life
is turned upside down in a heartbeat. Something as
mundane as paying a bill is a huge problem.”
Further, a house isn’t just a house, he explains;
the rooms are places where significant events in their
lives have taken place. “You’re dealing with the very
fabric of these people’s beings,” and repairing their
lives as much as the property, he says. “A window Paul Clouser’s National Fire Repair started in business in 1913. The typical job, he says, “really centers around the customer.”
is a window and a door is a door, but it is their view How that drying is handled depends on the kind program,” he says, that factors in labor, materials
of these items you have to deal with,” he says. of water – from clean, or ordinary water, to gray up and overhead.
Concern with quality, Clouser says, keeps as through black, or sewage, which requires the items Debbie Milani, production manager with Servpro
much of the work in-house as possible and limits being dried to be sanitized. “If it’s clean water, you of Southern Trumbull County in Warren, says the
his company’s use of subcontractors chiefly to me- just set up the drying equipment,” Rooks says. restoration business is “feast or famine.” Most of
chanicals and plumbing. “When you start subbing “If you don’t dry it,” he warns, “other things can Servpro’s work is water restoration, Milani says,
everything out you lose control of quality.” colonize down the road, whether it’s clean water loss and the busiest times are during the spring when
The average repair job from a fire costs $15,000, or black water loss.” there’s a lot of rain, or the dead of winter when
Clouser says, although some are as little as a few Rooks does reconstruction work, and employs pipes freeze.
hundred dollars. “But we had one this year over carpenters, painters and carpet installers. Some work “No job is too big where we would say we abso-
$300,000,” he adds. The average water damage bill is subbed out, depending on the size of the job. “If lutely have to walk away,” Milani says.
is about $7,500, but again he had a commercial job the customer wants us to, we can put everything The company gives customers a timeline of when
that resulted from a water line break that cost “well back together for them,” he says. they can get to the job, and will start a waiting list
over $400,000.” Because the firm does insurance One of the most interesting jobs this year, Rooks when work starts to back up. They try not to keep
restoration work, National Fire uses a national reports, was when a patient at a Glenbeigh treat- customers waiting more than 24 hours because mold
platform computerized system for pricing, the kind ment center went “berserk” with one of the fire begins to grow within 72 hours, she says.
most contractors in this area use, he says. extinguishers. The company also just completed a “When we’re busy, everybody’s working and
“Insurance work is far different than standard $300,000-plus job following “a pretty large residen- everybody’s working overtime,” Milani says.
construction work,” he says, and requires special tial fire,” he says. The actual clean-up can take up to four hours,
training to handle water and smoke damage. “Insur- “Every job is totally different,” says Rick Pesa, followed by four days of keeping drying equipment
ance people don’t want to deal with [contractors] estimator and operations manager at All-Action in the house and monitoring it daily to ensure it’s
unless they’re on those particular programs.” Restoration. “There is no typical job.” His firm drying properly, Milani says. Prices vary depending
In business since 1986, Disaster Recovery Ser- handles mostly water damage. “There’s so many on the job, and although homeowners insurance can
vices, on McMyler Street in Warren, deals with “a different things that cause water damage,” he says, have deductibles as high as $1,000, 90% of the jobs
lot more water damage” than fire damage, mostly including frozen pipes. have some kind of insurance. Still, the industry isn’t
damage from broken pipes or overflowing sump A job can cost anywhere from $500 – to sim- recession-proof, she says.
pumps to fire sprinklers going off, reports owner ply repair siding that’s blown off in a storm – to “There’s still some people that have to pay a por-
Reggie Rooks. “We have a warehouse full of drying $150,000 or $200,000 to rebuild a house that has tion of the bills themselves,” Milani says. “And some
equipment,” he says. burned down. “As far as pricing, we use a computer people just don’t have it.”


36 DECEMBER 2009 The Business Journal

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The Business Journal DECEMBER 2009 37

Restoration Companies
Look to Remodeling
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to stay ahead Most jobs take a week or longer to ��������������������������������
complete, and Eagle handles up to six
of new competitors. jobs monthly.
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After a fire or flood, homeowners
By Jeremy Lydic ���������������������������������
will have to pick out new carpeting,

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t took Steve Peshek two days flooring, paint, cabinetry and other ���������������������������������
driving around Ashtabula County features, and some may want an ad- ������������ ��������������������
to find the right wood he needed dition built, says Patricia Harman, ����������������������
to finish a fire restoration project that, director of communications for the �����������������������������������
he says, reminded him of an episode Restoration Industry Association in ���������������������������������
of “This Old House.” Columbia, Md., and editor-in-chief of �����������������������������
In 1998, Peshek, president of Cleaning & Restoration Magazine. ������������������������������������
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son, took a job restoring a century from the restoration side of the busi- �����������������
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Of Southern Trumbull County
house damaged in ness, more compa-
a fire. The frame While the volume of work isn’t nies are adding re-
of the house fea- necessarily decreasing, more modeling services
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on log houses, Peshek learned the ma- she says.
terial he needed was “not something “Prudent business owners are al-
you’re going to see in a newspaper ways looking for something that will
or go to a lumber yard and buy,” he set them apart from their competi-
says. tion,” Harman says. “In some markets,
While searching for abandoned if there aren’t a lot of fires, remodeling
is a great way to supplement what
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barns, Peshek found one that was
little more than a foundation and had they’re doing and branch out.”
a 60-foot long beam that was a perfect
match, he says. He bought some 40
Some restoration companies also
are starting to specialize in certain ��������������� ���������
logs, each 24 feet in length, in Co- areas of the industry. These include ������������������������ �������������
lumbiana County and took them to electrical work, drying out structures,
a sawmill to be made into flooring. It doing the actual restoration or rebuild- ����������������������
took his company six weeks to finish ing, and boarding up the building after ������������
the job. After 28 years in the business, a fire, Harman says. Probably the big- �����������������������
Peshek says there aren’t too many res- gest trend is commercial cleaning for �����������������
torations at that level of difficulty. schools and health-care entities, such
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much more interesting as well,”
Peshek says. “Typically everything
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Not too challenging.” After the 2001 terrorist attacks on
Instead, the challenge today, the World Trade Center, hospitals
Peshek says, is finding restoration needed places to put people in need
work. While the volume of work isn’t of specialized care, Harman says. Res-
necessarily decreasing, more compa- toration crews helped prepare nursing
nies are entering the market. homes and school dormitories for
“There’s just so many companies these patients. More recently, crews
now doing restoration work that a lot have cleaned schools after an H1N1 ��������������������
of insurance companies are requiring outbreak. Swine flu has helped bring
three to four estimates,” he says. cleaning for health to the forefront, �������������������
And so, Peshek has spent the last “as has information on hospital ac-
few years branching out into remodel- quired infections,” Harman says.
ing. “It’s going well,” he says. Many “If you need some specialized
homeowners are adding space rather cleaning, the restoration industry is
than building new, so residential work probably the best place to find those
makes up most of Peshek’s business, people,” she says. “It’s incumbent
he says. upon them to ensure the operating
Commercial work comes in spurts, room and patient areas, that sort of
but has gone up during the last two thing, are cleaned adequately.”
38 DECEMBER 2009 The Business Journal

Austintown Holds Its Own in Tough Economy


Urology center under them to end-users across the country, Musilli said. of storm sewers, the creation of retention ponds,
construction, McHenry Among other development projects finished
this year in Austintown were a $168,000 Dunkin’
the renovation of fire station No. 3, the acquisition
of six acres to develop two new football fields for
Industries expanding. Donuts on route 46 and an $80,000 expansion of youth football, and the renovation of two basketball
Ryan Carpet on Victoria Road. courts on Kirk Road.
By Dan O’Brien
Oles said that the township is aggressively pursu- However, the township has also taken its lumps

A
ustintown is suffering its share of foreclosures, ing grants for community-development projects and as a result of the economic downturn. Home foreclo-
business shutdowns and high unemployment landed a significant amount last year. sures continue to be a problem across Austintown,
but the recession isn’t preventing companies Those grants enabled the installation of new Oles stated, while a medical company recently va-
from expanding or relocating here, township sidewalks along South Raccoon Road, replacement cated the township’s Westchester Building.
officials say.
Led by an $8.5 million urology center scheduled
to open in April on Mahoning Avenue, commercial
development is still evident throughout Austintown,
reports township trustee Lisa Oles.
“Austintown is still moving forward and holding
its own,” she said Nov. 13 after addressing a break-
fast at the Regency sponsored by the Youngstown/
Warren Regional Chamber and First National Bank
of Pennsylvania.
Humility of Mary Health Partners, Advanced
Urology Inc. and N.E.O. Urology Associates Inc.
have combined efforts to construct Partners in Urol-
ogy Health, a technologically advanced center that
provides patients a central location where they can
be treated for prostate cancer and other urological
disorders.
The new center is being built next to HMHP’s
St. Elizabeth Emergency and Diagnostic Center on
Mahoning Avenue.
“It’s a 13,000-square-foot facility devoted to the
treatment of prostate cancer and will have the latest
radiation therapy,” said Chuck Folkwein, HMHP’s
chief information officer.
The building will be among the first structures in
the Mahoning Valley certified as LEED, an acronym
for Leadership in Environmental Engineering and
Design, Folkwein said. Initially, the operation will
create 12 jobs.
Oles reported that construction plans have been
submitted for a cluster of five medical office build-
ings along state Route 46 just north of New Road,
signaling new development could begin next year
in this section of the township.
“We’re also going to bring in a small restaurant
[on the corner of 46 and Norquest],” she noted. “We
don’t know the name yet.”
Work is scheduled for completion soon on
the $2.5 million production plant for McHenry
Industries, a signage company relocating from
Youngstown to Victoria Road.
Company President Ron Musilli said the work is
nearly finished, and McHenry Industries expects to
be moved in by the end of this year. “We’re about
75% done. It’s coming along fantastic.”
Since the expansion was announced earlier this
year, the company has hired four new employees
who will operate the new equipment when McHenry
Industries relocates, Musilli said. “We’re busy,” he
added.
Musilli said overall business is down 10% to
15% compared to 2008, but last year was the best
in the company’s history. “We’re still going strong.
The last time we saw a downturn was 1991 and we
were hurt then.”
McHenry Industries engineers and fabricates
plastic signs for retail signage companies that sell
The Business Journal DECEMBER 2009 39

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40 DECEMBER 2009 The Business Journal

Penmanship
From Page 1
student privacy, proved especially
challenging, he says. While worse
than most, it illustrates how bad so
many Americans’ handwriting has
become.
“I can read 98% of the essay tests
without too much trouble,” O’Brien
says, “and the rest with time and ef-
fort.” This student required consider-
able time and effort.
Those who blame the personal
computer and cell phones/Blackber-
ries on which people text – who writes
when you can keyboard? – for causing
handwriting skills to atrophy don’t
realize history is repeating itself.
In the 1920s, use of the type-
writer was becoming widespread, says
Remember this lesson posted on the wall of your second-grade classroom? Zaner-Bloser Co. of Columbus distributes similar posters nationwide.
Kathleen Wright, national product
manager for handwriting at Zaner- teachers to impart to first-, second- arm, holding the marker in his hand of the Mahoning County Educational
Bloser, Columbus, and the typewriter and third-graders how to print and between the thumb and all four fin- Services Center. Her boss, retired su-
was blamed for the deterioration of write cursively has also diminished, gers. perintendent Bill Hyde, couldn’t recall
penmanship. the chairwoman of teacher education The difficulty is increased because why the exhibits ended, she says, after
Zaner-Bloser remains the “No. 1 says. most adults have developed their own she checked with him.
purveyor of handwriting materials Of greater concern is teaching edu- modifications of the Zaner-Bloser or First- and second-grade pupils
in the United States,” Wright says. It cation majors how to teach children Peterman scripts. in Mahoning County schools wrote
designed the systems of printing and “writing convention skill sets,” which Esther Stewart, a retired elementary three sentences in pencil, Stewart
cursive script many elementary stu- includes how to form letters, but en- teacher in the Poland public schools, recalls, the first being, “My name is
dents in the Mahoning Valley learn. compasses much more – defining and says she had no training in college -----.” Her students excelled, Stewart
Alarmed 90 years ago by the seem- relaying the message, helping other to prepare her to teach penmanship believes, “because I tried to make it
ing deterioration of legible writing, students by editing their messages when she began her career. She at- fun, exciting. … I didn’t allow erasing
The Columbus Dispatch, in conjunc- and making them publishable, that is tributes her graceful handwriting or misspelling [in the entries for the
tion with Zaner-Bloser, sponsored good enough to be to the fact, “My fair]. … I just took such great pride
handwriting contests, contests that posted in school
continue today. halls and bulletin
Mere legibility, not reproducing mother was an
excellent penman
[in good printing] and instilled it in
them.”
Whether handwriting is any worse, boards. forms close to the model letters and my father was As did most elementary teach-
or that much worse, today is a matter T h o s e w h o posted in elementary classrooms a school teacher.” ers, Stewart had her pupils draw re-
of speculation although most who would teach pri- above blackboards and white- That, combined peated ovals and slants before having
discussed this topic think illegibility is mary school pupils with “an excellent them drill in forming their letters. “I
on the rise and concede their writing must learn how to boards, is all the state Depart- cooperating teach- wouldn’t tell them what letter they
is not as good as it used to be. form letters free- ment of Education asks today. er” when she did were going to learn,” she says, as they
The chairwoman of the department hand, Bailey says, her student teach- were forming ovals and slants before
of teacher education at YSU, Dora Bai- no easy task. The teacher stands in ing, allowed her to coach her pupils being introduced to a new letter.
ley, laments, “Penmanship is no longer front of a blackboard or whiteboard so they excelled in both printing and Stewart remembers the wooden
taught” [in public schools.] Now – more often than not the latter – and cursive script. desks with inkwells that fifth-graders
penmanship is called handwriting.” uses a marker to draw outsized let- When Stewart was growing up, in the Poland Union School used to
Moreover, the time primary teachers ters. handwritten letters were the usual write their entries, the first half of the
spend on instruction in handwriting is While encouraged, no longer are means of communication outside Gettysburg Address, for the fair. They
considerably less than it was a decade elementary teachers-in-training re- one’s immediate community, the wrote with black wooden pens with
ago, she says. quired to reproduce as closely as pos- retired teacher recalls. Her mother steel nibs that had to be dipped in ink
One reason is the pressure on sible the model letters in Zaner-Bloser wrote her brothers serving in World every fifth or sixth word.
teachers to prepare their pupils so or Peterson. War II, who wrote back, at frequent Stewart was coming to the end of
they’ll pass the standards tests man- One retired teacher who earned intervals. her teaching career 37 years ago when
dated by the state, Bailey observes. her baccalaureate in education in Even in peacetime, long-distance Christina Roussos, who teaches sec-
Time spent on instruction in hand- 1965 remembers having a printing phone calls were expensive and ond grade at Poland Dobbins School,
writing is reflected only indirectly in exercise returned with the notation, required an operator to complete. was beginning hers. Roussos found a
the answers students write for short “Nice ruler!” Because she “cheated” Typewriters, perceived as less per- mentor in Stewart.
essay questions. There is no direct in forming the vertical straight lines sonal, were found mostly in offices When Roussos was in elementary
reward for a school system to help its of lower-case a’s, b’s, d’s, k’s, l’s, p’s and and schools. school, she recalls, she was blessed
students become more than legible q’s, she had to resubmit the exercise The samples Stewart’s students “to have had such good teachers” who
writers. and was penalized a letter grade. submitted to the education exhibits insisted her letters be formed correctly
Mere legibility, not reproducing With a sheet of paper, the writer at the Canfield Fair won prize after and properly spaced apart.
forms close to the model letters posted moves his hand, arm stationary, hold- prize and usually blue ribbons from When she did her student teaching,
in elementary classrooms above black- ing the pen firmly between the index the judges, Stewart recalls. the supervising teachers from YSU
boards and whiteboards, is all the state finger and his thumb, supported by To the best of her recollection, the visited her classroom. “They came in
Department of Education asks today, the middle finger. handwriting exhibits at the fair ended and watched you,” Roussos says. “So
Bailey says. Writing on a whiteboard, how- about eight years ago, says Laurie Fox, you had to practice penmanship.”
Time spent in instructing aspiring ever, requires a person to move his retired secretary to the superintendent CONTINUES NEXT PAGE
The Business Journal DECEMBER 2009 41

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It wasn’t until she enrolled in the correctly. The position of the paper
master’s program, however, that she before them is equally important.
had the time to really get into teaching Roussos agrees with Bailey that
printing and cursive writing. Instruc- teachers today lack the time to devote
tion in the latter begins the second
semester of second grade.
to pupils practicing the formation of
their letters. When she was in primary cortland-banks.com/freechecking
Roussos is as insistent as Stewart school, Roussos recalls, “We practiced
was about “the proper formation
of letters. You go bottom to top [in
cursive writing] instead of top to
more. It became such an automatic re-
sponse. … I had to trace over models.
… We could go through 45 minutes

bottom,” she relates. “I use the same of solid instruction.”
verbiage she did.” Roussos and Stewart agree that
Part of her challenge is “breaking pupils “love cursive. It’s a rite of pas-
bad habits,” Roussos says. In second sage to becoming a grownup,” Stewart

receive
grade, few if any have had much says.
experience using a keyboard. They Roussos discourages parents from Bring this coupon in to any
have, however, used crayons and
paintbrushes and many try to transfer
teaching their children cursive before
she introduces such writing in Janu- Cortland Banks branch
the grips to their pencils.
Roussos has soft plastic devices for
ary. That way she has a better chance
of teaching them to form their letters & $100* for opening
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Do Doctors Deserve Bad Rap?
Pupils who form their letters best, comprehensive exams masters’ can-
students whose writing is closest to didates undergo before graduating,
the Zaner-Bloser models, don’t nec- most choose to answer the essay
essarily get better grades. And those question on a computer, Bailey says,
with the least legible handwriting “but you can ask to write by hand.”
don’t necessarily get worse grades. Few do.
Four of those interviewed for this “Nearly 100% of the math majors
topic, Christina Roussos, Esther [who intend to teach in high schools]

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Stewart, Dora Bailey and Dan O’Brien, are printers,” Bailey has found. “Many
agree there is at best a weak cor- people revert to printing because it’s
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With the reputation physicians accountants, say, or lawyers or mem-

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popular culture, they’re the butt of Wright suggests that a physician’s
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Bailey and Roussos agree that girls damage. Pharmacists are the people
tend to have an easier time mastering most concerned about doctors’ illeg-
handwriting than boys. “Handwriting is ible writing, she says.
a fine motor skill,” Bailey states, and At the Northeastern Ohio Universi-
females tend to have an easier time ties College of Medicine in Rootstown,
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“But some of my best writers are in health professional education, John deposit of $50 not currently on deposit with Cortland Banks.
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Zaner-Bloser’s Kathleen Wright not a topic of instruction now that most a new ACH Direct Deposit of your payroll, pension or Social
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active for a minimum of four months, to receive the $100
Even engineers, who enjoy reputa- use systems.” deposited into your account, if all conditions have been met.
tions for neat printing, have seen a Barone writes, “Legibility is a $100 is considered interest and will be reported on IRS Form
decline in legibility, Wright reports, medication safety issue. Students 1099-INT. Offer may be withdrawn at any time. Customers
and the deans of some engineering are made aware of the problems must mention where they heard about the promotion between
colleges have denied admission to and guided to anticipate them,” then October 7-Dec.31, 2009, or present this coupon during
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42 DECEMBER 2009 The Business Journal
The Business Journal DECEMBER 2009 43

BuildingBetterBusiness
Philanthropy Spreads Holiday Cheer
Encourage workplace giving by offers the following tips for encouraging charitable a can of food or a toy, those items can collectively
rallying around one cause. giving in the workplace.
• Institute a volunteer day. Giving to a charity
make a huge difference for a less fortunate family’s
holiday season.

T
he holidays are a time for giving, but many doesn’t have to mean pulling out the checkbook. • Offer a matching program. Small-business
charities are feeling the squeeze of the Many charities rely heavily on the gift of time from owners can encourage employees to make dona-
recession and donations are down. volunteers. An officewide volunteer day is a great tions to charities by matching their contributions.
The downturn in the economy is taking its toll on way to get employees out of the office and working Matching programs allows individual employees to
everyone, families, small businesses and charities. together on something they can be proud of. choose a cause that might be near and dear to their
According to the Giving USA Foundation, charitable • Rally around one cause with an office own hearts. By matching their donations, small-busi-
giving in the United States exceeded $307 billion fundraiser. Office bake sales, silent auctions and ness owners can show they support their employees
in 2008. tag sales are just a few ways to raise money for a with the added benefit of a tax deduction.
Still, as a result of the tight economy, two-thirds charity. If everyone gets involved, then the nickels • Educate employees to be wise givers. Encour-
of public charities receiving donations saw decreases and dimes can add up to a healthy donation to an age employees to research their charities first with
in 2008. Charitable giving from individuals dropped organization that helps the needy. the BBB Wise Giving Alliance at BBB.org/charity
2.7% and corporate giving dropped 4.5%. The out- • Collect food or toys. Around the holidays, before they give. BBB Wise Giving Alliance evaluates
look for charitable giving in 2009 is equally bleak. many charities are looking for nonperishable food more than 1,200 national-soliciting charities against
With rough economic times for everyone, many donations or toys. If everyone in the office donates 20 rigorous accountability standards.

Take That ‘Flying Leap’


families who depend on charity this time of year are
facing a lean holiday season.
Employees and employers who pool their efforts
to support a cause, either with their time, money

W
or in-kind donations, can have a positive effect on hile at the membership in the BBB can help your bottom line.
struggling families over the holidays. Promoting Youngstown We have partnered with The Business Journal to pro-
philanthropy with employees also is a great way to Phantoms vide significant discounts on ads that will catch the
spread the holiday spirit and promote camaraderie hockey game the other reader’s eye and give you the opportunity to reach a
around the office. night, I happened to target audience that meets your specific criteria.
The Better Business Bureau Wise Giving Alliance speak to the owner Perhaps you own a trucking firm and wonder why
of a BBB Accredited you should advertise here. This past year, The Busi-
Tips for Online Shopping Business.
He mentioned my
ness Journal featured your industry in its mid-June
edition. Next year could be the perfect opportunity
Forty-four percent of holiday shoppers make president’s column from to get your feet wet by running an ad when your
purchases online and every year scammers de- the previous week’s industry is featured and do several follow up ads
vise online schemes to trick them into divulging Business Journal to analyze your results. With your BBB discount
personal information such as credit-card numbers. and told me how you will save a lot of money.
The Better Business Bureau offers these recom- effective his ad was In addition, the BBB provides members
mendations for online shoppers: in a recent edition with educational pieces to help them make
• Confirm the legitimacy of all “trust marks.” By Pat Rose
of this newspaper. advertising decisions. Some of these titles
You can confirm that certification from organiza- BBB President
I asked if he took are Thirty-Three Reasons to Advertise, The
tions such as BBB, Versign or TRUSTe is legitimate advantage of the BBB advertising discount. Thirteen-Point Marketing Communications
by clicking on the seal. A legitimate seal will direct He said he didn’t even know there is one. Needs Assessor, The Advertising Effective
you to the certifying organization’s Web site. Shame on me! Idea Provoker and the Nine-Point Integrat-
• Make online purchases with a credit card. Ask yourself, “Why should I be adver- ed Marketing Communications Checkup.
If the credit-card number lands in the hands of ID tising and why should I be advertising in If you follow the advice contained in
thieves, the Fair Credit Billing Act allows you to dis- The Business Journal?” these helpful guides, you will be better
pute the charges with your credit-card company. Answer: to increase the number of users, to pro- equipped to create an effective and memorable ad,
• Pay only on a secured site. Always look in mote your particular industry, to gain professional and to analyze its effectiveness.
the address box for the “s” in https:// and in the approval or endorsements, to promote your product Now is the time to “take that flying leap” into
lower-right corner for the “lock” symbol before or service to high-income buyers, to better home in advertising. Your customers have become tougher
paying. on your target audience. and more promotion-driven. Just like you and
If there are any doubts about a site when using If you sell business equipment and services, me, your customer has doubts and fears about the
Internet Explorer, BBB recommends right-clicking you probably shouldn’t advertise in a publication economy and the future. Your customer is looking
anywhere on the page to select “Properties.” This directed to stay-at-home mothers. Instead, refocus for someone to trust. Your customer won’t know
will let you see the real URL (Web site address) your sales from the general public to business deci- about your trustworthiness and skills unless you tell
and the dialog box will reveal if the site is not sion-makers who appreciate quality and extraordi- them. Now is not the time to hunker down and wait
encrypted. If using Firefox, click on Tools in the nary service. until things turn around. This economy is turning
menu bar, then Page Info. If you agree that one or more of these reasons around. Compose that ad and let high-income deci-
to advertise apply to you and your company, then sion-makers know how good you are.
44 DECEMBER 2009 The Business Journal

BWC Library Offers Access to Safety Issues


N
ot only is the library of the Ohio Bureau of and can be downloaded.
Workers’ Compensation a repository of data In addition, the BWC library has a greater array
on safety, it also plays a role from time to time of videotapes and DVDs to lend with most of the
in resolving union-management disagreements. newer material available in Spanish as well as Eng-
A librarian for the BWC’s Division of Safety lish and in a few cases, Portuguese. Many are also
& Hygiene, Karen S. Jensen, tells of how a labor close-captioned. “We’re not like the public library,”
union challenged the change of a long-standing Jensen said. “You don’t have to [physically] come
safety practice the management of a manufacturer to us. We’ll ship the materials to you.”
wanted to adopt. The library is “constantly buying new DVDs,”
The old practice, which the union thought should she said. “Your only cost is shipping.”
remain, had been negotiated through collective bar- While safety officers can easily conduct Internet
gaining. “Where in OSHA [U.S. Occupational Safety searches through search engines such as Google,
and Health Administration regulations] does it say Yahoo, Ask, Find and Bing, it’s easy to be sidetracked
this?” she related the union asked of the unidenti- if they don’t know enough to narrow their search.
fied manufacturer. “If you haven’t found what you’re looking for in 20
Management approached the BWC’s safety divi- minutes, call us,” she advises (800 644 6292, 614 466
sion to find the applicable language – no small task, 7388 or send an e-mail to library@bwc.state.oh.us).
Jensen said – which it did. Satisfied, the union ac- “Remember,” Jensen noted, “anyone can put up
ceded to the new safety practice. a Web page. You want to visit those that are reliable,
Jensen came to Boardman Nov. 12 to brief the reputable and up-to-date. … Many high-quality
Mahoning Valley Safety Council on how its members resources are not freely available online.”
can make the best use of BWC library resources, Much of that “high-quality” material is copy-
especially through its revamped Web site www. righted and can’t be reproduced without paying a
ohiobwc.com. New information touches topics that Karen S. Jensen, a librarian for the Ohio Bureau of Workers’ fee. The BWC library “can’t provide copies of copy-
range from controlling flu to drug-free workplaces to Compensation, briefed members of the Mahoning Valley Safety righted materials,” she says, “but we can provide
Council on available resources at a luncheon Nov. 12.
ergonomics to lifting guidelines to trucking safety. the relevant gist.”
New to the Web site, she said, is how companies for all companies to share. A wealth of statistics pertaining to safety is avail-
can secure grants to develop best safety practices. “No password is needed to log in,” she noted. able through the BWC Web site for safety officers to
Those that work out to be most effective will be “Click to safety services and go to publications.” present their managers as to why practices or policies
posted on the BWC site where they’ll be available Many of the publications run fewer than 10 pages should be modified or revamped, she added.

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The Business Journal DECEMBER 2009 45

TIPS FOR CLIMBING THE CAREER LADDER, COMPILED BY MONNIE RYAN

Getting Ahead
How to Succeed at Your Job
Show your dedication experience.
to professional growth. • Communicate. The more you
communicate with your supervisor,

T
he road to success begins when the more he will keep you posted on
you get the job; succeeding at current events in your office. Send
your job takes initiative and regular e-mails with updates on your
hard work. Showing investment work progress and questions you may
and dedication have
to improve your Document everything, includ- • Find solu-
professional tions. The more
growth and job ing project feedback from your problems you can
p e r f o r m a n c e boss and colleagues, so you can solve indepen-
c a n h e l p l e a d use specifics to measure your dently, the more
to a promotion, progress. responsible and
says Kim Goff, valuable you will
author of Female look. If you need
Empowerment-A Personal Journey. to take a problem to your supervisor,
And these days, it can help you keep take your suggestions for ways to
your job. resolve it as well.
Goff offers some tips for improving
your chances of achieving workplace Social Networking Pays Off
success in spite of any economic ups Social networking is growing
and downs: pervasive, so it should come as no
• Education pays. Most employers surprise that more employers are
prefer hiring and promoting employ- using these sites to screen potential
ees who have college degrees, so it can employees.
be well worth your time and financial If you’re on a social networking site
investment to obtain one. If your and are looking for a job, it pays to be
company offers free software, com- careful what you post.
munication or management training, Rosemary Haefner, vice president
take advantage of these opportunities of human resources at CareerBuilder,
as well. offers some tips for maintaining a
• Take on more work. In addition positive image online:
to performing the tasks required of • Clean up your digital dirt be-
you, research trends and happenings fore you begin your job search. Re-
in your industry and share relevant move any photos, content and links
findings with your colleagues. Taking that could work against you in an
on new challenges and being an expert employer’s eyes.
in your field will show your boss that • Consider creating your own
you are invested in producing superior professional group. Use sites such
quality work. as Facebook or BrightFuse.com to
• Take the initiative. Anticipate establish relationships with thought
what will be asked of you and offer leaders, recruiters and potential re-
your services. Be perceived as a “can- ferrals.
do” person. • Keep gripes offline. Keep the
• Manage expectations. Make sure content focused on the positive,
you and your boss are on the same whether that relates to professional
page with what you are expected to or personal information. Make sure
deliver. If no regular evaluations are to highlight specific accomplishments
in place, check in with your boss every inside and outside of work.
few months to confirm you are on tar- • Don’t forget that others can see
get. Document everything, including your friends, so be selective about
project feedback from your boss and who you accept as friends. Monitor
colleagues, so you can use specifics to comments made by others. Consider
measure your progress. using the “block comments” feature
Learn from your mistakes. The or setting your profile to “private” so
worst thing to do is try to blame only designated friends can view it.
someone else or deny that a mistake If you’re still employed, for good-
was made; the best thing is to accept ness’ sake, don’t mention your job
responsibility and learn from the search.
46 DECEMBER 2009 The Business Journal

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The Business Journal DECEMBER 2009 47

�������
PEOPLE, COMPANIES, MAKING NEWS

For the Record ������������������������������������������

�������������
The Children’s Center for Science & Michael Robinson, regional director of
Technology is relocating to the former access to care and outreach operations
McCrory’s Department Store building on for Humility of Mary Health Partners, ���������������� ���������
Federal Plaza in downtown Youngstown. was presented the Young Healthcare Ex- ���������������������������������
Through a subsidized long-term lease ecutive of the Year Award by the National ������������������������������������
agreement with First National Bank of Association of Health Services. ���������������������������������������
Pennsylvania, owner of the building, Nick Odille has been promoted to �������������
the center will occupy the first floor and supervisor at Hill, Barth & King LLC,
lower level. Its current location is on Certified Public Accountants and Busi-
East Boardman Street. ness Consultants, Youngstown.
The center will close Dec. 5 and re-
main on hiatus until the museum opens Kevin P. Murphy, a member at Har-
next fall, says Suzanne Barbati, execu- rington, Hoppe & Mitchell Ltd., has
tive director. To help finance the project, been named to the board of governors
a capital campaign has been launched of the Ohio State Bar Association.
with the goal of raising $1.5 million. Owner Stan Thomas cut the ceremo- ������������������
The Wean Foundation has been nial ribbon Nov. 10 at My My My’s Diner ������������������
awarded a $200,000 grant from the across from Harding High School on Elm �����������������������������
Healthy Eating Active Living Conver- Road in Warren. ����������������������������������
gence Partnership to launch a new Donald “Jay” Bice, president of the ���������������������������������
program, the Mahoning Valley Healthy American Cancer Society’s Trumbull ��������������� �������������
Neighborhoods Alliance. The program County unit, has been elected chairman
will focus on making nutritional foods of the board of directors of the American
more accessible to underserved neigh- Cancer Society, Ohio Division.
borhoods in Youngstown and Warren.
Stephanie L. Sferra, executive di-
Ellen Staf for d, a graduate of
Youngstown State University, has joined
��������������������
rector of the Trumbull County Tourism the Youngstown office of Cohen & Co. as
Bureau, has completed coursework a staff accountant and auditor.
offered by the Ohio Tourism Leadership
Eastern Gateway Community Col-
Academy.
lege will hold program information nights
Time Warner Cable has launched a at the college’s Valley Center at North-
five-year $100 million cash and in-kind side Medical Center from 6 to 7:30 p.m.
program that will encourage youth to Nov. 30, Dec. 8 and Dec. 9 and from 6
focus on learning science, technology, to 7:30 p.m. Dec. 2 at Trumbull County
engineering and math skills. Of that Career and Technical Center. The ses-
amount, $11 million in resources has sions are free and open to the public. ����������������������
been earmarked for Ohio. Call 800 995 5222 or 800 682 6553.

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New concession centers and pavilions recently were dedicated at Austintown Fitch
Falcon Stadium, one in honor of the Joseph Lane Family and Lane Companies, and the
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other for David Ritchie, longtime school board member, and Eugene Chepke, former Fitch
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athletics director. The centers were made possible through donations to the Falcon Forward �������������������
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Committee by the Lane Family, Farmers National Bank, and Tony and Mary Lariccia. From
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left are Austintown Police Sgt. Ray Holmes, Falcon Forward treasurer; Joe Lane, CEO of the �������������������������������������������� �����������������������
Lane Companies; Vince Colaluca, Austintown superintendent; Chepke and Tony Lariccia.
48 DECEMBER 2009 The Business Journal

40 Under 40
Names MVPs
F
ive shining stars from among
40 of the Mahoning Valley’s
most accomplished young
professionals were recognized Nov. 19
when they were named MVPs during
the 40 Under 40 Awards ceremony at
the DeYor Performing Arts Center.
The awards are sponsored by the
MVP 20/30 Club and the Community
Foundation of the Mahoning Valley.
This is the fifth year for the event.
The 2009 40 Under 40 MVPs
are Adam C. Earnheardt, M. Brigid
Kennedy, Shawna L. L’Italien, Heather
Marie McMahon and Allen L. Ryan.
Earnheardt, 39, is an assistant
professor in Youngstown State
University’s communications depart-
ment. He said encouraging his stu-
dents “to give back to the community
through the various service-learning Julie Scarscella, left, of the Community Foundation of the Mahoning L’Italien, Heather McMahon, Adam Earnheardt, Allen L. Ryan and M.
Valley, stands with the 2009 MVPs. They are, from left, Shawna L. Brigid Kennedy.
projects available in my courses” is
among the most important work he and “more surprised that the nuns she knew that she wanted to be an at- child, she recalled, when she declared
does. were the ones doing something about torney from a very young age because to her parents that she would never
Kennedy, 39, is associate director of it.” She volunteered to help, and that she “wanted to help people.” live in a suburb.
the Ursuline Sisters HIV/AIDS Minis- led to a part-time job and to her cur- McMahon, 33, is development Ryan, 38, is director of corporate
try. She said that after returning to the rent position. director of the Mahoning Valley Orga- affairs at Covelli Enterprises. He
area from Ireland, she was surprised L’Italien, 39, a partner at Har- nizing Collaborative. She discovered credited his law degree with opening
to learn that HIV was a problem here rington, Hoppe & Mitchell Ltd., said her passion for city planning as a several doors of opportunity.
The Business Journal DECEMBER 2009 49

BY JEFFREY GITOMER

Sales Savvy
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Are They Out of Touch? ����������������


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Or Out of Their Minds? �������������������������


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A
recent survey conducted by Use of the Internet to blog, e-zine and
a management and human use social media. Achieve Google’s top
resources consulting ranking, so your customers and pros-
firm asked 365 CEOs and sales pects will perceive you as a provider of
management executives, “What are value and a leader in your field.
the three key factors that separate high • Exciting, compelling presenta-
performing sales tion skills. Not ��������������������������������������������������
professionals from just solid commu-
moderate to low Use creativity to present ideas in nication skills, but ������������������������������������������
performing sales favor of the customer, and cre- superior question- ��������������������������������
professionals?” ativity to differentiate yourself ing skills, listen-
Both CEOs and from the competition. ing skills and a
C-level sales ex- sense of humor
ecutives (all peo- are vital. It’s the
ple who don’t sell, but rely on their innate ability to engage and capture
salespeople to produce sales so that the imagination (and the wallet) of
they can get paid), ranked self dis- customers and prospects.
cipline/motivation as the most im- • Ability to prove your value and
portant. claims through the testimony of �����������������������������������������������������
Next in line were customer knowl- others. Testimonials sell where sales-
edge, innate talent/personality, and people can’t. The best salespeople use
product knowledge; further down the video testimonials to support, affirm
list were experience and teamwork and prove their claims. But you don’t
skills. just get testimonials, you earn them.
Totally bogus. Same with referrals.
These are qualities of corporate • Ability to create an atmosphere
greed, not value, service or help – the where people want to buy (because
three things that customers require to they hate being sold). This is done by
give business and maintain loyalty. engaging and asking; not presenting
I’m a writer, but I’m also a sales- and telling.
man. I make sales and sales calls every • Ability to build a relationship,
day. If you’re interested in the most not hunt or farm. Great salespeople
important factors of a high performing are relationship builders who provide
salesperson, let me give you a realistic value and help their customers win.
list of success characteristics: • Unyielding personal values and
• Perpetual, consistent, positive ethics. Great people have great values
attitude and enthusiasm. This is the and great ethics. It’s interesting that
first rule of facing the customer, fac- 365 CEOs and executives don’t deem
ing the obstacles, facing the competi- them in the top 10.
tion, facing the economy and facing • The personal desire to excel and
yourself. be one’s best. There is no prize in sales
• Quadruple self-belief. Un- for second place. It’s win or nothing.
wavering belief in your company, The masters know this and strive for,
unwavering belief in your product fight for, that slight edge.
and unwavering belief in yourself are As for the next poll taken, here’s a
the first three rules. But fourth is great idea for CEOs and sales execu-
the most critical of the self-beliefs. tives. There’s an easy way to find out
You must believe that the customer the most important factors and quali-
is better off for having purchased ties of great salespeople: make some ��������������������������������
from you. sales calls yourself. ������������������������������������������
• Ability to give and prove value. If you really want to have some fun, �����������������������������������������
Prove the value of your product or bring your marketing people along. �������������������������������������
service, and your ability to give value
beyond the sale to the prospect so you Jeffrey Gitomer, author of The Sales Bible, �������������������
can earn the order, the reorder and conducts seminars, sales meetings and �����������������������������������
the loyalty. training programs. Reach him at 704 333 ����������������������������������������� �������������������������
• Ability to promote and position. 1112 or at salesman@gitomer.com.
50 DECEMBER 2009 The Business Journal

Legal Listings
Business Bankruptcies
CHAPTER 11 09-44421 ACHG Inc., 6715 Tippecanoe
09-43448 Concord Steel Inc. (SIG Acquisi- Road, Building A, Suite 202, Canfield 44406.
tion Corp.), 197 W. Market St., Suite 202, (1100 N. Market St., Rodney Square N., Suite
Warren 44481. Total Assets: $11,540,361. 200, Wilmington, Del. 19801.) No Summary
Total Liabilities: $14,088,466. Schedules filed.

New Ohio Incorporations


The Joshua Project, Salineville. Incorpora- W. Streetsboro Road, Suite 211, Richfield
tor: Toni Deliscia. Filed by: Toni Deliscia, 44286. Agent: Same.
39574 Alderlick Road, Salineville 43945.
Agent: Same. A Season for Change, Austintown. Incorpora-
tor: Michael R. Mathews. Filed by: The Alpern
Leetonia Bears to Bee Preschool Inc., Law Firm, 103 W. Market St., Suite 202,
Leetonia. Incorporators: Nancy Callahan, Jill Warren 44482. Agent: Michael R. Mathews,
Ogle, Shelly Wurster. Filed by: Shelly Wurster, 25 N. Canfield-Niles Road, Suite 140, Aus-
1493 Beeson Mill Road, Leetonia 44431. tintown 44515.
Agent: Same.
Abundant Love Outreach Ministry Inc.,
Access Health Mahoning Valley Inc., Youngstown. Incorporators: Mar y Cook,
Youngstown. Incorporators: Matthew Stefa- Faye Morris, Julie Buggs. Filed by: Abundant
nak, Rober t Pinti, Neil Altman. Filed by: Love Outreach Ministries, 93 E. Myrtle Ave.,
Leonard D. Schiavone, 100 Federal Plaza E. Youngstown 44507. Agent: Mary Cook, 103
#300, Youngstown 44503. Agent: Same. Willis Ave., Youngstown 44507.
Team Taylor Inc., Youngstown. Incorpora- Swift Ryders M.C. (Sexy Women in Full
tor: Joseph C. Randazzo. Filed by: Financial Throttle) Inc., Youngstown. Incorporators:
Network of America Ltd., 2214 E. Enterprise Lisa B. Maiden, Ashia M. Maiden. Filed by:
Parkway, Twinsburg 44087. Agent: Joseph Lisa B. Maiden, 344 Sexton St., Struthers
C. Randazzo, 2214 E. Enterprise Parkway, 44471.
Twinsburg 44087.
Peoples Voice Inc., Girard. Incorporators:
Employer’s Advantage Inc., Boardman. Incor- James E. Haynie, Greg Leberfinger, Elsa For-
sythe. Filed by: Peoples Voice Association, 1
���������������� porator: Jerry M. Bryan. Filed by: Henderson
Covington Messenger Newman & Thomas Louise Lane, Girard 44420. Agent: James E.
Co. LPA, 6 Federal Plaza Central, Suite Haynie, 1 Louise Lane, Girard 44420.
������������������������ 1300, Youngstown 44503. Agent: Jerry M.
Bryan, 6 Federal Plaza Central, Suite 1300, Milk ’nd Eggs Inc., Warren. Incorporator:
Youngstown 44503. Jennifer Chishko. Filed by: L.A. Chishko et al,
5446 Oak Hill Drive, Warren 44481. Agent:
Steel Valley LaCrosse Club Inc., Youngstown. Jennifer Chishko, 5446 Oak Hill Drive, War-
Incorporator: Thomas N. Trefethern. Filed by: ren 44481.
Thomas N. Trefethern, 4615 W. Streetsboro
����������� ������������ Road, Suite 211, Richfield 44286. Agent: Refuge Ministries Inc., Youngstown. In-
Same. corporator: Robert A. Denen. Filed by: CT
������������� ������������� Corp. System, 4400 Easton Commons Way,
������������� ���������� Beatitude House Gr een Clean Inc., Suite 125, Columbus 43219. Agent: Robert
����������������������������������������� Youngstown. Incorporator: Michael J. Podol- A. Denen, 1155 Churchill-Hubbard Road,
sky. Filed by: Shumaker Loop & Kendrick, 41 Youngstown 44505.
S. High St., Suite 2210, Columbus 43215.
Agent: Michael J. Podolsky, 1000 Jackson Johnston Senior Center Inc., Cor tland.
Incorporators: Elizabeth Muir, Esterina Wag-
���������������������������� St., Toledo 43604.
ner, Susan Rohm. Filed by: Johnston Senior
Cardinal Mooney Platinum Cardinals Inc., Center Inc., 143 W. Main, Cortland 44410.
������������������������� ���������������������������� Youngstown. Incorporators: Thomas N. Tre- Agent: Elizabeth Muir, 5834 state Route 5,
fethern. Filed by: Thomas N. Trefethern, 4615 Cortland 44410.
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company conducts business but which is not the legal
�������������������������� name of the owner or of the corporation as indicated
Ave., Greenville 16125, consulting engineer-
ing. Fictitious Name Owner: Julie A. Manns.
in its articles of incorporation.
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Twilight Events, 24 Lower Idlewild Drive, New Greenville 16125, beauty salon. Fictitious
���������������������������������������������� Castle 16101, wedding/event planning. Ficti- Name Owners: Ashley Emph, Heather Wil-
tious Name Owner: Heather Wagner. liams.
Paoletta Financial Independence, 848 Bran- Mister Chip, 272 Kaldy Drive, New Castle
dywine Drive, Hermitage 16148, multi-level 16101, distributor of Boyer’s chips. Fictitious
���������������������������������������������������������� marketing. Fictitous Name Owner: Paoletta Name Owner: Jennifer Fry.
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Ellwood City Revitalization, 314 Fifth St.,
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phy. Fictitious Name Owner: J&R Beck Inc. Main Street Project Revitalization Inc.
The Business Journal DECEMBER 2009 51

COMMERCIAL REAL ESTATE


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52 DECEMBER 2009 The Business Journal

Ryan Sees Abortion Compromise State Grant to Pay for Razing


YOUNGSTOWN Nov. 17 – U.S. Rep. Tim Ryan is www.BusinessJournalDaily.com Of Sheet & Tube Building
confident that a compromise on abortion coverage
will be worked out in the health care reform proposal
under consideration in the U.S Senate.
Ryan, who opposes abortion, had attempted to
OnlineDatelines YOUNGSTOWN, Nov. 21 – A $630,000 state grant
will allow the city to remove an eyesore near V&M
Star Steel’s proposed $970 million expansion.
The grant, from the Clean Ohio Revitalization
broker a compromise to assuage the concerns of Fund, will pay for demolition and remediation at the
pro-choice and anti-abortion House Democrats. His site of the former Youngstown Sheet & Tube office
efforts were given “the green light” by House Speaker building in Brier Hill. Although not a part of the
Nancy Pelosi, reports Time, and the language Ryan property to be used for V&M’s proposed expansion,
wrote “ended up known as the Capps amendment, removal and cleanup of the dilapidated building is
because Lois Capps of California introduced it dur- a priority for V&M, local officials say.
ing the House Energy and Commerce Committee’s
markup of health reform legislation.” Small Business Centers Turn 25
COLUMBUS, Nov. 19 – The Small Business Develop-
Harry& Jeans Restaurant Closes Ohio, U.S. Jobless Rates Up ment Center of Ohio Network is celebrating 25 years
CANFIELD, Nov. 25 – The message posted on the WASHINGTON, Nov. 20 – Ohio’s unemployment of service to entrepreneurs and small businesses.
restaurant’s front door spells it out – Harry & Jean’s rate for October was 10.5%, up from 10.1% in Sep- Established in 1985, the network of 39 centers
is closed less than three years after its celebrated tember. Nationally, the jobless rate rose to 10.2% in across Ohio foster business growth with local
opening. October from 9.8% in September, reports the U.S. partners including colleges, development agencies,
Patrons who used to call for take-out orders are Bureau of Labor Statistics. chambers of commerce and community groups.
now greeted by a message saying the phone line is Across the country, 29 states and the District of
disconnected. The empty parking lot at 6580 Iron- Columbia recorded over-the-month rate increases TMH Tops in Women’s Health
wood Blvd. and darkened dining area are a stark for October and 13 states posted rate decreases, WARREN, Nov. 20 – Trumbull Memorial Hospital
contrast to April 18, 2007, when brothers Ralph and with eight states’ rates remaining unchanged. Jobless is ranked among the top 5% of hospitals in the
David Meranto celebrated the grand opening. rates in all 50 states were up from October 2008, and nation for women’s health outcomes, according to
An homage to their childhood memories growing Ohio’s was up 3.6 percentage points from its rate a HealthGrades, which presented the hospital with its
up Poland, the Merantos named the restaurant after year ago, 6.9%. 2009/2010 Women‘s Health Excellence Award.
their grandparents, Harry and Jean Russell. The number of unemployed workers in Ohio for The independent health-care ratings organization
Ralph Meranto heads the parent company, Caro- October was 618,000, up from 594,000 in Septem- also awarded Trumbull Memorial with a five-star
lina Restaurant Concepts in Rock Hill, S.C., which ber, the Ohio Department of Job and Family Services rating for women’s health. HealthGrades’ hospital
operates a Harry & Jean’s restaurant there and closed reported. The number of unemployed in the state ratings and awards reflect the track record of patient
its Charlotte, N.C., location last year. has increased over the last year by 209,000, from outcomes at hospitals in the form of mortality and
Company representatives couldn’t be reached. 409,000 in October 2008, the bureau reported. complication rates.

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The Business Journal DECEMBER 2009 53

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COMMERCIAL REAL ESTATE

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BUSINESS LEAD GROUP

Networking for Leads?


Person to person sales leads are one of the
best ways to generate business. So be a leader.
ADVERTISING • MARKETING • PR Join Us For a Meeting!
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54 DECEMBER 2009 The Business Journal

Attention Veterans
Funds and Grants available for Senior Veterans
“Because
we deeply
appreciate
Did you know that war-time veterans and their surviving spouses could qualify for financial the sacrifices
assistance for assisted living and skilled nursing care at Park Vista?
made to keep
Retired veterans who have faithfully served our country may also be eligible to apply for a
Veterans Honorable Service Grant for use at Park Vista’s independent living areas. This grant is
our country
offered by Ohio Presbyterian Retirement Services (OPRS) to thank veterans for their dedicated free.”
and loyal military service.
If you would like information about either assistance from the Veterans Administration, or the
OPRS Honorable Service Grant for independent living, please call Josie at 330-746-2944, Ext. 1550.

Independent Living apartments, villas and suites •Assisted Living • Memory Care • Rehab Center • Health Care 330-746-2944
www.oprs.org

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The Business Journal DECEMBER 2009 55

Nursing Homes See Trend Toward Shorter Stays


The number of admissions is surgery or an injury.
While short-term rehabilitation allows those
growing as younger people seek patients healthy enough to return home, it also
places more pressure on nursing homes to admit
rehabilitation services. new patients as beds become available, Rowland
notes. “In some cases, you need to get double the
By Dan O’Brien admissions,” he says.
Moreover, nursing homes are still asked to do

N
o longer are skilled-nursing homes considered more with less, says JoAnn Blunt, administrator at
a place where the elderly live out their days. Danridge’s Burgundi Manor, Youngstown. “There
Instead, they’ve evolved into rehabilitation have been some Medicaid cuts,” she says.
centers where a growing percentage of residents stay The nursing home, for example, must now pay its
for a short time preparing to return home. transportation expenses out-of-pocket where before,
“In the past, nursing homes were considered the Medicaid covered the costs. “Residents still have to
last place for a loved one,” says Dan Rowland, di- go to dialysis” or off-site for other services, she says.
rector of marketing at Windsor House Inc., Girard. “We’re using our own drivers now.”
“Not anymore.” And, regulations change every year, Blunt says,
Rowland, Donald Kacmar of Shepherd of the so administrators, to remain in compliance, must
Valley Lutheran Retirement Services, Sally Demi- keep abreast of any changes in the law.
dovich of Woodlands, Ed Fabian of Grace Woods Almost all of the nursing homes in the area are
Senior Living, Joan West of Park Vista Retirement witnessing a rise in patients in need of short-term
Community, and JoAnn Blunt, director of Danridge’s care. “Between 2008 and 2009, we’ve seen an 8%
Burgundi Manor, acknowledge that senior care in increase in short-term rehab,” reports Joan West,
the Mahoning Valley mirrors a rising trend across director of public relations for Park Vista Retirement
the country. Community in Youngstown. “We added 12 beds last
“We’ve expanded our short-term rehab services,” year” to accommodate the increase.
Chuck Koch, a carpenter, cuts moldings for installation at
says Rowland. Windsor House’s newest center, Hampton Woods’ new assisted living center. Among the new services planned for Park Vista is
Masternick Memorial Health Care Center in New a 1,400-square-foot pool that will allow progressive
Middletown, includes new rehabilitation services admissions are up.” Hospitals are also discharging therapy for long-term and short-term residents, West
that “meet the demands of the baby-boomers,” he patients earlier, and many refer these patients to says. “This is a fantastic therapy pool and is quite
relates. “The length of stay is generally shorter, and skilled nursing centers for recovery after a stroke, See SHORTER STAYS, page 56
56 DECEMBER 2009 The Business Journal

Shorter Stays: Nursing Homes Seeing More Short-Term Residents


From Page 55 Because a patient’s mobility might be reduced, his care faces is that many people “are outliving their
an undertaking.” residence may need to be modified, Kacmar says. resources.” Therefore, the expense of placing a
Depth of the pool can be manipulated from al- Thus, “There’s also a handyman component” in loved one in an assisted living apartment is always
most none to up to six feet. It also comes equipped which carpenters modify the house to make it more a factor.
with a variable-speed treadmill, resistance jets with accessible when the homeowner returns. “We can “We try to keep our costs as low as possible,”
massage hoses and a computer to document and install grab bars, or handlebars, in various places at Fabian says. “People in this area are struggling,”
track patients’ progress and recovery. the home while they’re staying with us,” he says. especially those retired from Delphi Packard whose
“This is the same type of therapy used by The When patients can’t return home, assisted living pensions and health-care benefits are in doubt.
Ohio State Buckeyes football team and the Cleveland could provide an answer, says Edward Fabian, owner Medicaid reimbursements to those in need are
Cavaliers,” she relates. and operator of Grace Woods Senior Living, owner helpful, and he reports occupancy at Grace Woods
Also, West says, Park Vista is incorporating into of complexes in Niles and Salem. is “solid. The demand is still there. But where it’s
its therapy program electronic game systems such The greatest challenge this segment of senior going to go from here is anyone’s guess.”
as the Nintendo Wii and the Dakim Brain Fitness
System, both intended to stimulate cognitive activ-
ity and reduce the risk of dementia. “Older people
are moving into the digital age as well. They really
enjoy it,” she says.
Sally Demidovich, corporate administrator at
Woodlands, which operates the skilled-nursing
centers Austinwoods in Austintown and Hampton
Woods in Poland, reports a significant increase in
short-term patients over the past two decades.
“I would say between 30% and 40% of our resi-
dents are short-term,” she says, compared to between
5% and 10% about 20 years ago. It’s not unusual, she
relates, to accept 50 new admissions in a month and
process the same number of discharges.
Demidovich likens today’s nursing home to “a
hospital for the elderly,” where its primary function
is to rehabilitate patients and either send them home
or to an assisted living center. This trend convinced
Woodlands to construct a new assisted living center
at its Hampton Woods campus. “It’s establishing a
continuum of care,” she says.
Demand for assisted living hasn’t necessarily in-
creased because most patients opt for home-health
care, Demidovich says. Still, there is a need for
those looking for a more independent lifestyle that
assisted-living complexes offer, coupled with close-
knit care services.
And, there is a trend toward younger residents
moving into skilled nursing centers, relates Donald
Kacmar, director of Shepherd of the Valley Lutheran
Retirement Services. “We’re transitioning to a lot
of short-term services and we’re seeing a lot more
younger folks coming in” who require therapy.
Fifteen years ago, the average age of residents
was the early 80s, Kacmar reports. Since then, he’s
seen a rise in the number of patients and short-term
therapy residents in their late 60s. “We’ve really seen
an increase over the last two years [for short-term
rehab]. There’s been an increase of hospital refer-
rals,” he relates, because hospitals discharge their
patients earlier.
To improve patients’ morale after rehab, Kacmar
says Shepherd of the Valley has “become more cre-
ative” in preparing residents for their returns home.
“We’ve just piloted a program called Almost Home
at our Poland site,” he says.
Almost Home houses residents in one of the villas
on campus, villas equipped with all the amenities of
home – dishes, utensils and a kitchen – so residents
can begin cooking their own meals again should
they want to.
The package also includes emergency alarm ser-
vices and modifications to help the resident return
home. The idea is to prepare the resident for their
return home by re-acquainting them with the every-
day functions they used to perform.
The Business Journal DECEMBER 2009 57

Nursing Homes Fight Medicaid Cutbacks


Nursing homes elsewhere nent injunction to prevent the state from effecting more per bed per day than those in Mahoning and
a new Medicaid pricing structure passed in 2005. Trumbull counties.
reimbursed more than here. Reimbursements are calculated on “peer groups,” The new classification plan would be phased in,
that is, groups clustered based on geography. Daliman says, although he relates he doesn’t know
By Dan O’Brien
Whether the case will make it to trial or the par- how long the period would be and how much the

A
group composed of nursing homes and ties achieve some settlement remains to be seen, reimbursements would decrease per year. “Last year,
their advocates say the method the state of Daliman adds, noting that the attorney general’s there was no drop,” he relates. “But this year, it’s
Ohio uses to determine reimbursements is office has “been communicative and somewhat open about 1%,” he says, or $2.5 million for both Mahon-
unconstitutional and they’re prepared to go to court to discussion.” ing and Trumbull counties.
and argue their case. Mahoning and Trumbull counties were once Meanwhile, nursing homes are expected to ab-
“Area nursing homes could lose a total of $20 considered part of a smaller “urban” peer group, sorb additional costs because Medicaid no longer
million a year” once the state puts into effect its which allowed for a greater specified amount of covers transportation, over-the-counter medications
new reimbursement schedule, says J.P. Daliman, Medicaid dollars per bed, Daliman explains. Un- such as cold medicines or aspirin, and oxygen, Dali-
corporate counsel for Windsor House Inc. and a der the new plan, the state reduced the number of man says.
member of the Senior Rights Advocacy Group of peer groups to three from four and reclassified the To offset these costs, Job and Family Services
Northeastern Ohio. “We’re taking these numbers Mahoning Valley as “rural,” which calls for smaller boosted its payments by $10 per bed this year.
and meeting with our counsel. The next step is to reimbursements. However, Daliman relates, that sum isn’t enough
meet with the attorney general’s office.” The peer group receiving the highest reimburse- to cover all the new expenses. “Our franchise fees
The Senior Rights Advocacy Group, a coalition of ments is Hamilton County and the surrounding have also doubled,” he says.
24 skilled-nursing centers in the Mahoning Valley, greater Cincinnati area, while the second peer group Donald Kacmar, director of Shepherd of the Val-
sued the Ohio Department of Job and Family Ser- consists of larger municipalities such as Cleveland, ley Lutheran Retirement Services, says the reduction
vices in February, contending a state law passed in Dayton, Akron and Columbus and their surround- in Medicaid reimbursements “hurts us. We’re look-
2005 “unfairly and irrationally treats Mahoning and ings. The third peer group is made up of Mahoning, ing at $15 a day per bed loss, and it could be more.
Trumbull County nursing homes differently from Trumbull and Stark counties as well as other “rural” The peer groups are not fair.”
similarly situated homes” elsewhere in the state. areas of the state. Daliman estimates some 10,000 are employed
The complaint was filed in Mahoning County “We think it was improperly applied and statisti- directly or indirectly by nursing homes in the Valley,
Common Pleas Court but since was reassigned to cally invalid,” Daliman says. “We feel like we’ve been including therapists, vendors of medical supplies
Franklin County. “We want to expedite this,” Dali- grouped in areas that are unlike us.” and transportation companies. Collectively, these
man says. A tentative trial date is set for June 22. For example, Daliman points out, nursing homes nursing centers treat more than 10,000 residents
The coalition wants the court to grant a perma- in the Cincinnati peer group are reimbursed $40 a year.

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58 DECEMBER 2009 The Business Journal

November 25,
2009 Auto Loan Rates
������� CONSUMERS NATIONAL BANK – Salem FIRST PLACE BANK – Boardman

�����
Up to 60 Mos. 5.75 - 16.50 Up to 60 Mos. 8.00
10% Down
Rate varies based on applicant’s credit rating

CORTLAND BANKS – Cortland HOME SAVINGS – Youngstown


Up to 60 Mos. 7.74
Up to 60 Mos. 6.75
Up to 66 Mos. 8.24
Up to 72 Mos. 6.75 10% Down

� �� ����� ��� �������� ��� ������ ��� ���


��������������������������������������
������������������������������������
E.S.B. BANK – Ellwood City
Up to 60 Mos.
Up to 72 Mos.
7.40
8.40
HUNTINGTON BANK – Youngstown
Up to 60 Mos. 5.99

FARMERS NATIONAL BANK – Canfield


��������������������������������� Up to 60 Mos. 6.40
KEYBANK – Youngstown
Up to 66 Mos. 6.99
Up to 72 Mos. 6.94 Down: Varies
Rate varies based on applicant’s credit rating

������������ FIRST MERIT BANK – New Castle PNC BANK – Sharon


Up to 66 Mos. 7.24
� ������������������� Up to 48 Mos. 5.50-12.50
10% Down
� �������������������� PNC BANK – Youngstown
FIRST NATIONAL BANK OF PA. – Hermitage Up to 66 Mos. 7.00 - 13.00
� ������������������ Up to 60 Mos. 7.85 Rate varies based on applicant’s credit rating
Up to 66 Mos. 7.85
� �����������������������������������
US BANK (formerly Firstar Bank) – Boardman
1ST NATIONAL COMMUNITY – East Liverpool
����������������� Up to 48 Mos. 5.10
Up to 60 Mos. 6.00 - 11.75
�������������������
Every effort is made to ensure the accuracy of The Business Journal compilations. The rates are subject to change without notice. All rate
information should be confirmed with the individual financial institution before entering into transactions. © 2009 Youngstown Publishing Co.

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The Business Journal DECEMBER 2009 59

November 25,
2009 Mortgage Rates �������������
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FINANCIAL INSTITUTION TYPE TERM RATE, 2-Wk Trend FEES �������������


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AMERISTATE BANCORP INC. FHA/VA 0% Down 30 Yr. 4.75  0+costs ��������������
Boardman Fixed 3% Down 30 Yr. 4.875  0+costs ���������
�����������
CHARTER ONE BANK Fixed 5% Down 15 Yr. 4.375  0+costs ��������������
Boardman Fixed 5% Down 30 Yr. 5.00  0+costs ���������
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CONSUMERS NATIONAL BANK Fixed 5% Down 15 Yr. 4.375  0+costs ���������������������������������������
Salem Fixed 5% Down 30 Yr. 4.875  0+costs �������������������������

CORTLAND BANKS Fixed 5% Down 15 Yr. 4.25  0+costs ������������ �����������������������


Cortland Fixed 5% Down 30 Yr. 4.875  0+costs

DOLLAR BANK MORTGAGE CENTER ARM 5% Down 5 Yr. 4.00  0+costs ������������
Cleveland Fixed 5% Down 30 Yr. 4.875  0+costs

E.S.B. BANK Fixed 5% Down 15 Yr. 4.625  0+costs


Ellwood City, Pa. Fixed 5% Down 30 Yr. 5.375  0+costs
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FARMERS NATIONAL BANK Fixed 20% Down 15 Yr. 4.75 — 0+costs
Canfield Fixed 20% Down 20 Yr. 5.125 — 0+costs �������������������
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FIRST MERIT BANK Fixed 5% Down 15 Yr. 4.375  0+costs
New Castle/Boardman Fixed 5% Down 30 Yr. 4.875  0+costs �����������������������������
FIRST NATIONAL BANK OF PA Fixed 5% Down 15 Yr. 4.375 — 0+costs ��������������������������������������
Youngstown, Ohio Fixed 5% Down 30 Yr. 4.875  0+costs ���������������������������������������������
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Arrows tell whether rates rose or fell since last issue. Dashes indicate “unchanged.” �����������������������������������

Long Term Care


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Whether you or your loved ones


need assisted living or skilled nursing care,
Humility of Mary Health Partners
offers both for seniors at all levels
of health and independence.

Call to arrange a tour

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9800 Market Street Humility House
North Lima, Ohio 44452 755 Ohltown Road
Humility Health Center 330-549-0740 Austintown, Ohio 44515
Marian Living Center 330-549-2434 330-505-0144
Marian Living Center 330-549-2434
60 DECEMBER 2009 The Business Journal

IT FEELS GOOD
TO BELONG!
From Swimming Lessons
November 25,
2009 Mortgage Rates
IT FEELS GOOD TO BELONG!
FINANCIAL INSTITUTION TYPE TERM RATE, 2-Wk Trend FEES
to Youth Sports Leagues, D.D. & Velma Davis
5.00 
YOUNGSTOWN CENTRAL
From Day Camps to Racquetball, 1ST NATIONAL COMMUNITY
East Liverpool YMCA
YMCA
Fixed
FHA
FAMILY YMCA
5% Down
5% Down
30 Yr.
30 Yr. 5.25 
0+costs
0+costs
The YMCA of Youngstown
4.25 
Champion St., Downtown McClurg Rd., Boardman
has programs FIRST PLACE BANK Fixed 5% Down 15 Yr. 0+costs
Boardman Fixed 5% Down 30 Yr. 5.00  0+costs
for every member of the family.
Why Not Join Today? FLAGSTAR BANK 330-744-8411
Fixed 0% Down 15 Yr. 4.50  0+costs
Beechwood Fixed 0% Down 30 Yr. 5.00 — 0+costs
It Feels Good To Belong!
5.50 
HOME FEDERAL
Niles
Fixed 20% Down
330-480-5656
15 Yr. 0+costs

HOME SAVINGS 4.25 


Youngstown THE YMCAFixed 5% Down 15 Yr.
Of YOUNGSTOWN,
Fixed 5% Down 4.75 
30 Yr. OHIO
0+costs
0+costs

HOWARD HANNA FINANCIAL Fixed 5% Down 15 Yr. 4.375  0+costs


Pittsburgh Fixed 5% Down 30 Yr. 4.875  0+costs
Your YMCA Membership HUNTINGTON BANK FAMILIES
Fixed • INDIVIDUALS
3% Down • STUDENTS
15 Yr. • SENIORS
4.375 — 0+costs
Gives You Access to Youngstown Fixed 5% Down 30 Yr. 4.875  0+costs
Your YMCA Membership Gives You Access
Both the Downtown Central Y KEYBANK Fixed to 20%
TwoDown
Great Facilities!
15 Yr. 5.00 — 0+costs
Youngstown Fixed 20% Down 30 Yr. 5.25 — 0+costs
and The Davis Family Y
in Boardman! PNC BANK FHA 3% Down 30 Yr. 5.00 — 0+costs
4.875 
Youngstown
330-747-YMCA Fixed 5% Down 30 Yr. 0+costs


330-747-YMCA WELLS FARGO HOME MORTGAGE
www.youngstownymca.org
Boardman (Formerly Norwest Mortgage)
FHA
Fixed
3% Down
5% Down
30 Yr.
30 Yr.
5.00
5.00 
0+costs
0+costs

US BANK Fixed 5% Down 15 Yr. 4.25  0+costs


Boardman (Formerly Firstar Bank) We buildFixed strong kids,5% Down strong30families,Yr. 4.75  1+costs
www.youngstownymca.org
© 2009 Youngstown Publishing Co. All rightsstrong
reserved. communities.
*Private Mortgage Insurance because less than 20% down.

BUSINESS JOURNAL BUSINESS JOURNAL


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INSTITUTIONAL AD
1/6V PAGE AD
INSTITUTIONAL AD
1/4V PAGE AD

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����� 778 TRUESDALE RD.
YOUNGSTOWN, OH 44511
330-788-4541
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The Business Journal DECEMBER 2009 61

A
ccording to most reports, cost- The list of participating restaurants from the local tender steak fries.
conscious consumers have cut region isn’t long, by the way, but you’ll find some Needless to say, we left with a couple of take-
well-known names such as Vernon’s Café, Caffe Ca- home boxes that were so stuffed they barely closed.
way back on dining out. In fact, pri, O’Charley’s, TJ’s, Buena Vista and Sunrise Inn. The total bill was $28.98, or $23.98 minus the $5
we don’t have to look much be- coupon. Divide that by getting at least four meals
Frugal Factoid: Think outside the doggie box.
yond our own need to conserve If you’re planning a vacation, check Restaurant.com
out of our purchases (two of them at home), and it
hard-earned dollars to know it’s true. As re- turned out to be a pretty good deal after all.
offerings in the location you’ll be visiting. Knowing
Similarly, we took a coupon from the 2010 En-
cently as a couple of years ago, you could find we’d be in Marietta for a couple of days this sum-
tertainment Book for a buy one, get one free entrée
mer, for instance, we spent $2 for a $25 certificate
our search team at area restaurants several for the Marietta Brewing Co., one of our favorite
to O’Donold’s Irish Pub & Grille in Austintown.
days a week for lunch or dinner or both. Fast There, we enjoyed Chicken Diablo at $12.99; the
restaurants, to take with us – and a wonderful (and
huge bowl of tender, delicious corned beef and
food? Only if we had the grandmunchkins inexpensive) meal was enjoyed by all.
cabbage ($10.99) didn’t cost a cent. Leftovers? But
in tow and nothing short of a McSomething

W
of course!
e don’t remember the first time we pur-
would do. chased an Entertainment Book, but
There’s a lengthy list of local participants with
Now, we’ve resurrected regular grocery- coupons in the Entertainment Book, by the way; for
we do know we haven’t missed one in
2010, a few we’re sure to visit include Big Family
shopping trips and dusted off the cookbooks. quite a few years. The Youngstown edition sells
Restaurant, Sunrise Inn, Rotelli and Barry Dingles.
That said, dining out remains one of our favor- for $35 at Entertainment.com, but some nonprofit
organizations sell them locally for less. The contents Frugal Factoid: Wash it down with water. Soft
ite guilty pleasures, and we aren’t about to give can be previewed at the Web site if you’d like to see drinks and alcoholic beverages can total as much or
it up without a fight. We’re always looking for before you buy. more than the meal itself; at Ricky’s, for example,
ways to enjoy the pleasures of restaurant din- The book includes coupons for much more than we spent $7.75 for three beers. It’s much smarter to
food – for instance, dry cleaning, rounds of golf and buy your drinks at supermarket or liquor store prices
ing for less than it would cost to eat at home. movie tickets – but restaurants are the big attraction and treat yourself when you get back home.
Figuring we’re not alone, we’ll share a few of for our search team. Each edition’s new year starts
our success strategies. on Nov. 1, and we’ve never failed to recoup the cost Finally, don’t overlook other sources of savings,
of a book from the savings provided by fewer than like coupons in newspaper ads and advertis-

W e’ve saved money at Restaurant.com a handful of restaurant coupons. ing circulars and sign- ing up at individual
ever since it started on auction site eBay. When our new book arrives, we stash it in our restaurants’ Web sites to receive spe-
com. Today, it’s a stand-alone site that car so it’s at the ready when we are. Such was the cial offers. It’s impossible to
sells discounted certificates at a flat fee, typically case when we were on the way home from a recent list all the possi-
$10 for a $25 certificate. But if you sign up at the photography foray in Beaver Creek State Park bilities, but we’ll
site, you’ll be notified of sales that bring the per- somewhere around lunch time. Flip- let you in on a
certificate cost down to as little as $2. ping through the pages, we spot- couple of our
For instance, a couple of friends introduced us ted Ricky’s English Pub in favorite finds,
to Margherita’s Grille a while back, and we loved it. Salem and said, starting with
So when we found that the restaurant in Girard is the buy one,
listed at Restaurant.com, we were delighted – and get one free
the minute the price dropped, we snapped up two coupons
or three. Everything is done online; just pop the In Search of: at IHOP

Cheap
chosen certificates in your virtual shopping cart, that ap-
enter the coupon code to get the special discount and pear just
your credit card number and print the certificates about every
on the spot. They’re good for one year after the date week in our newspaper.

Dining
issued, but only one per month can be used at the We both love breakfast any
same restaurant. time of day, so at our most recent
Before you buy, though, read the fine print. Most visit we enjoyed two orders of the “Big
certificates require a minimum purchase, typically Basic” – three eggs, three pancakes, hash browns
$35, excluding alcohol. Some have restrictions on By Monnie Ryan and a choice of bacon, sausage links or ham at $7.39
days or times, and it’s rare that they can be used to – both for the price of one.
buy daily specials or other promotions. We’ve also signed up at Ruby Tuesday (Ruby-
On a recent visit, we enjoyed Salmon alla Poma- Why not? Tuesday.com) and Chili’s (Chilis.com) to get special
doro, sautéed salmon with roma tomatoes, lemon Most often, coupons are for a buy one, get one e-mail offers. At Chili’s, we received a coupon for
and garlic with a hint of basil perched on top of free entrée or sandwich, so the $5 off on a $25 pur- free chips and queso almost immediately. Ruby
angel hair pasta ($12.99) and linguine with clams chase here wasn’t quite as good a deal. But since we’d Tuesday, though, sent a coupon for a buy one, get
in white wine sauce ($10.99). One of us added a cup never been here before, we decided to try it. And one free entrée.
of wedding soup ($1.99), and we shared a plate of yes, we’ll happily return the next time we’re in the Granted, the coupon expired a week after we
delicious fried, lightly breaded calamari with lemon area. The interior resembles (what else?) an English printed it, but that gave us sufficient time to enjoy a
and a side of marinara sauce ($6.99). Add in one pub, and the prices are quite reasonable – the most couple of handcrafted steak dinners that come with
soft drink and the total bill was just a few cents expensive entrées we saw were $10.99. Ruby Tuesday’s salad bar – which alone is worth the
over $35, with $25 of that amount covered by the Our biggest challenge at lunchtime, then, was price of admission.
certificate we bought for just $2 and plenty of food finding enough to meet the $25 spending require- Still other great deals we’ve clipped from the
to take home for another day. ment. In the end, we sampled a cup of lobster bisque newspaper in recent days are a dinner for two for
In most cases, you can view the menu of partici- ($3.50 and yummy) and an appetizer platter loaded $15.99 at Yankee Lake Inn near Brookfield, $5
pating restaurants online before you buy – spotting with onion rings, fried mushrooms, cheese-stuffed off two entrees at Welshfield Inn in Burton and a
the wood-fired ribs prompted us to snag a $25 cer- jalapeno peppers and mozzarella sticks for $7.95. one-pound sirloin steak dinner for $12.99 at the
tificate for $2 and pay our first visit – but definitely For our sandwiches, we ordered a shaved-beef RoadHouse in Niles.
not our last – to Brudder’s in Austintown. This time, Philly steak with grilled onions, peppers and cheese Frugal Factoid: Remember that servers have to
we took a couple of friends to share the wealth; to ($6.95) and the named-for-its-size “Prince of eat, too. No matter what percentage you choose to
keep it simple, we just split the amount we spent Whales” fish sandwich, batter-dipped cod, at $8.50. pay, always calculate your tip based on the amount
beyond the $25 discount. Both sandwiches were accompanied by wonderful you would have paid had you paid full price.
62 DECEMBER 2009 The Business Journal

BUSINESSJOURNALDAILY.COM VIDEO SERIES

3 Minutes...

Alex & Jorgine Shaffo, Owners

330-743-0920
Hours:
Monday-Friday 10:30 a.m.- 2:30 p.m. Catherine V. Mott Robert Reilly
Founder, BlueTree Capital Group Incoming president, Home Builders/
Located in the YMCA Building Remodelers Association

A
ngel investors take a lot of risk,
17 N. Champion St. • Downtown Youngstown

T
investing in early-stage compa- he construction industry may be
nies. The payoff, however, can feeling the brunt of the economic
NEW MENU EVERY DAY be substantial, says Catherine V. Mott, recession – building permits in
president, CEO and founder of BlueTree Mahoning County are down 77% – but
Capital Group and BlueTree Allied An- there’s still demand for upscale homes
gels. Her group of angel investors has built for professionals looking to cash
averaged a 27% return. in on good deals, says Robert Reilly,
incoming president of the Home Build-
Who Can Be an Angel? ers/Remodelers Association.
We’re accredited investors. That accred-
ited investor definition by the FCC is
Your Expertise?
someone who has a networth of a million I do all custom homes. We design them
[dollars] or earns at least $200,000 a from the ground up to the specifications
year for the previous three years. of the homeowner. … They range from
$300,000 to $700,000.
Average Return?
The most recent research that was con-
Much Demand?
ducted by the Angel Capital Education Demand? No. But, there’s still a mar-
Foundation is that so far we’re exceed- ket for it.
ing those of seed funds and our average
return is about 27%. Who’s Buying?
It really varies. Professionals – doc-
Same as Venture Capital? tors, lawyers, a lot of people who own
We are a form of venture capital – we’re their own businesses.
early stage. We’re smaller amount of
dollars, so we take the earliest risk. And, Effect of Tax Incentives?
we manage our own money. It’s our own Indirectly, [the first-time homebuyer
money; it’s not other people’s money. tax credit]will help because the people
I’m building for, they have to sell their
Required Investment? house and that could be somebody
Different groups have their different buying their first home. [The $6,500
levels. Our minimum level is $20,000 tax credit for homebuyers who’ve
[per investor] per deal. That’s done so owned a house in the last three years]
we can aggregate a considerable amount will directly help my business a lot
of money together and negotiate good better than the $8,000 first-time buyer
strong terms for the investors. [tax credit] will.

Visit BusinessJournalDaily.com to view video interviews with the Mahoning Valley’s most influ-
ential business and community leaders. Topics are always timely and pertinent.
The Business Journal DECEMBER 2009 63
THE BUSINESS JOURNAL
P.O. BOX 714 PRESORTED STANDARD
U.S. POSTAGE
YOUNGSTOWN, OHIO 44501 PAID
CHANGE SERVICE REQUESTED YOUNGSTOWN, OH
PERMIT NO. 69

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