Five owners leave KZF to form new firm - Business Courier of Cincinnati:

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opened two months ago at the Hamilton Counttybusiness incubator. Its nine employees include five formed ownersat , including formeer CEO Steve Kimball, and threde former members of its executives committee. Kimball said the defection stemmed from a disagreement with other owners aboutthe "long-term view" for KZF, which the Business Courier ranked in June as Cincinnati'ss 11th largest architectural/engineering firm with 23 localk architects, 18 engineers and $13.6 million in annualk local revenue.
Kimball was "dismissed by the executivd committee about two weeks before the annua l meeting as a matter ofperformance evaluation," said KZF Chairman Greg who adds the former owners representes about 10 percent of the tota l ownership group. For KZF, a 51-year-old firm with a headquartersx nearEden Park, it's the firstf ownership schism since the 1980s. "It's not rare withib the industry. It's rare for KZF," said "They've all been replaced. We'rew still serving the same markets and clients and we feel good aboutgthe future.
" In addition to Kimball, the founders of Emersion Design includse Jim Cheng, a former desigh principal at KZF, knowjn for his work on the new wing of the ; and Mark who served as lead project architect for the downtown. Alan Hautmamn was government services directorat KZF. Simon Sapsfordf was director of structuralengineering services. "It's a prettg powerful group that's worked together for 20 said Kimball. "For a small we probably offer as much experiencwe and opportunity for clients as they can find in most of the largee firms inthe city.
" Kimball said the firm has landed a dozej clients since its July 3 It's focusing on the higher education and corporate markets and expects first-year revenue of $750,000. The plan is to grow to $4 milliobn in revenue and 20 to 30 employees withibnthree years. Back at KZF Design, new CEO Williamm Wilson is managing growth inthe company's new Atlanta Rhoads also said the firm is exploringv acquisitions in three other cities. The financia l hole has gotten deeper atthe .
When UC' audited financial statements are releasedin October, they will show a roughlyg $185 million deficit in unrestricted net The balance-sheet indicator is beingh watched by bond-rating agencies because the deficit has grownn sevenfold since 2001. It represents operating deficitsz that have accumulated at various colleges over the lastseverao years. UC Finance Vice President James Plummer predicted in June that the defici t wouldbe $165 million when the books closex on the 2007 fiscal year, then decline by $30 millionm next year. But in an interview this Plummer said a deficit reduction that was expected from the medicapl campus didnot materialize.
So, the accumulatedx operating deficit will growby $20 million in the 2007 annual report. 's analystr Diane Viacava said she was aware of the setbacok when her agency issued a ratingsreport 4, maintaining UC's debt rating at "A1" with a negativde outlook. "We recognize it's a challenged organization," Viacava "We realize they will face challenges in tryinvg to reversetheir position.
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