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Cleveland Business & Commercial Law Blog

Lakeside commercial real estate purchased by local investor

Ohio investors may be watching with envy as the ownership of Quay 55 changes hands again. Once a warehouse for receiving cars shipped from auto manufacturers, the building situated on the shores of Lake Erie underwent a $28 million renovation project to convert it into apartments in 2002. For years following, the real estate was labeled distressed because of mortgage defaults and many vacancies. However, now boasting a 94 percent occupancy, the purchase may be considered a wise investment.

Currently the only privately owned lakeshore property in Cleveland, the building was recently purchased for an undisclosed amount of money. The new owner -- a local property developer -- plans to invest another $400,000 in renovations. Among those upgrades includes the addition of 29 new units and replacing the old and leaky roof.  

Contract disputes can present image and service problems

Customer service and the image that a company presents to the community are an integral part of an Ohio business marketing plan. Word of mouth and goodwill go a long way in overcoming obstacles and attracting customers. Even in the health care industry, the service provided to the patients and the image of the health care provider or hospital is paramount. Contract disputes can easily have a negative impact upon the business.

Summa Health appears to be experiencing concerns in the wake of a contract dispute. Apparently, emergency physicians contracted by Summa experienced a number of concerns, one of which involved Summa leadership at that time. Although the individual in question is no longer there, some problems remain and the company is working to regain lost ground. In addition, the number of referrals from physicians is still down.

Crowdfunding a newer option in business financing decisions

The plan is in place and the ideas are sound. The Ohio entrepreneur is ready to move forward with his or her business plans. At this point in the process, plans can move forward or come to a screeching halt. The determining factor appears to be the business financing decisions that the company makes.

One of the quickest and easiest ways to begin a new business is to self-fund by using credit cards or a personal bank loan. While this might quickly provide needed capital, it also creates personal risk for the individual and may not provide as much capital as is needed. For this reason, many entrepreneurs look to other means to finance their new businesses.

Contract disputes at heart of Ohio State and Verizon disagreement

Football and Wi-Fi -- these two seem to go together these days. While attending a football game, many Ohio fans enjoy taking pictures and posting comments on-line. This allows them to see who else may be at the game and meet up with friends. In addition, some fans enjoy keeping up with the scores of other games while attending one. Several years ago, Ohio State recognized the need to provide Wi-Fi service for its fans; they did not realize that this endeavor would result in contract disputes over the coming years.

In 2012, Ohio State contracted with Verizon to provide Wi-Fi service to the football stadium. Apparently, this service was never provided. Recently, a push to have this service in place before 2018 was again put into motion. However, these plans were set aside at a recent trustees meeting. According to at least one individual associated with the university, these new plans would not be necessary if Verizon fulfilled its contractual obligations under the 2012 contract.

Amazon looking to buy Whole Foods business organization

The battle for the consumer is on. The latest market to enter this ongoing battle appears to be in the grocery industry. As businesses across Ohio seek to merge and/or expand, their specific business organization often plays a vital role in success or failure.

Online retailer Amazon is making a play to purchase Whole Foods Market, Inc. Although Whole Foods is a national grocery chain, it currently operates four Ohio-based locations. Reports indicate that Amazon is set to pay $42 for each share of the national grocery store chain.

Contract disputes could affect CVS and Marsh supermarkets

Contracts are an important part of most Ohio businesses. As a business expands or acquires other businesses, contracts are used to establish the specific terms and conditions under which the acquisition will take place. Each party then expects the other to honor the terms of the contract; when this does not happen, contract disputes are likely to occur.

In April 2016, the drug chain CVS purchased the inventory and accounts from pharmacies operated by Marsh Supermarkets. The contract for this purchase included a price of $38 million and included a clause that stated that these supermarket locations would not operate pharmacies for a period of at least five years. Marsh supermarkets has now filed for bankruptcy, and two other companies are interested in purchasing the company.

Many different ways to obtain business financing

The idea is sound and the entrepreneur is ready to venture forward. Whether starting a new business or expanding an existing one, the Ohio business owner typically will need some form of financing along the way. Depending upon the business and the resources available to the business owner, there are several options available.

Perhaps the fastest way to obtain funding is through the individual's personal resources. In some instances, personal savings or investment accounts can be accessed. Additionally, some prefer to use personal credit cards or lines of credit that may or may not be secured .

Real estate lease may be new business' best option

Many times, when an Ohio business is first starting out, the business owner must decide between renting or buying space in which to operate the business. This decision is often based upon a variety of things such as the current real estate market, financing options and available capital. Many new business ventures find that leasing property is the appropriate option in the beginning.

Once the decision to lease has been made and a location has been selected, the type of lease and cost will be of primary interest. On one end of the spectrum is the fixed lease. With this lease, a set dollar amount is agreed upon, and that is what is paid for the duration of the lease.

Business valuation useful in business planning

At one time or another, each Ohio business owner will begin to wonder exactly how much his or her business is worth. There are a variety of reasons that this thought process will come about, including formulating answers to shareholder questions, purchasing or selling parts of the business or equipment, possible retirement or even estate planning. Having a good understanding of the value of the business is often necessary for your business planning purposes.

First of all, if you have shareholders invested in your business, it is likely that they will want to be kept informed. They are often interested in the actual cost involved in doing business as well as the actual income received. This is often in addition to the dividends that they expect to be paid. An accurate valuation of the business can help to minimize potential shareholder disputes and conflicts.

Contract disputes with city prompt filing of lawsuit

Like everywhere else in the country, Cleveland relies on private contractors for many of its projects. In many cases, everything goes according to plan, but in others, contract disputes arise. If the city and the contractor are unable to come to an agreement outside the courts, a lawsuit could result.

This is what recently happened in a city in another state. A construction company hired to perform construction on the city's airport filed a lawsuit alleging breach of contract. As is the case in many disputes, money lies at the center of the controversy.

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