June 20 - Crain`s Cleveland Business
Transcription
June 20 - Crain`s Cleveland Business
20160620-NEWS--1-NAT-CCI-CL_-- 6/17/2016 4:08 PM Page 1 VOL. 37, NO. 25 JUNE 20 - 26, 2016 Focus Business of Life Prep and parochial schools Pages 15-21 Edgewater Yacht Club continues to cruise Customers say there’s “nothing quite like sailing on Lake Erie.” Page 23 CLEVELAND BUSINESS The List Region’s highest paid CEOs Page 27 TRANSPORTATION Airport renovations touch down in time By ALISON GRANT clbfreelancer@@crain.com A whirlwind of construction and remodeling, hospitality bookings and security planning is almost complete at what will be the threshold for thousands of visitors arriving for the Republican National Convention — Northeast Ohio’s airports. Cleveland Hopkins International Airport takes the wraps off a $42 million terminal modernization next week that has a spruced-up façade, a ticketing level with more natural light and a reconfigured Checkpoint B to help smooth the flow of passengers through security. Private jet and charter passengers at Burke Lakefront Airport will find a new, $6.7 million terminal with a roomy passenger lounge and bistro. Cuyahoga County Airport in Richmond Heights has moved a tenant to free up 3,000 square feet for reception and conference rooms. Akron-Canton Airport cut the ribbon on a $2.7 million ticket wing overhaul, Lost Nation Airport in Lake County redecorated its lobby and resurfaced two runways, and Youngstown-Warren Regional Airport repainted and retiled its terminal. The catalyst for the upgrades, airport officials said, is the July 18-21 Republican convention that planners estimate will draw about 50,000 delegates, media and others to Cleveland. The Cleveland 2016 Host Committee, a nonprofit responsible for organizing and funding the convention, is busy training squads of volunteers to make the local airport experience harmonious for visitors. Over three arrival and two departure days at Hopkins, 200 ambassadors will be stationed on concourses and at tables stocked with maps and guides. Their mission: Give a warm welcome and sendoff, and information and directions to travelers, but EDUCATION Mesh with success SEE AIRPORT, PAGE 5 TECHNOLOGY StreamLink Software raises $10 million By CHUCK SODER csoder@crain.com @ChuckSoder Why did First Analysis invest in StreamLink Software? Demand for grant management software is on the rise — and the Cleveland company has what it takes to capitalize on that trend, according to Corey Greendale, managing director at First Analysis in Chicago. StreamLink recently raised $10 million from First Analysis and a long list of existing investors. The money will help StreamLink ramp up its sales and product devel- opment efforts at a critical time: New rules and regulations are pushing government agencies and other organizations to keep better track of the grants that they award and receive. First Analysis wanted to take advantage of that trend, but it wasn’t ready to invest in StreamLink when it first learned about the company a few years ago. At the time, StreamLink hadn’t yet generated enough customer traction to fit First Analysis’ investment strategy. So the firm put the Cleveland company into the “potentially-interestingbut-come-back-to-it-later bucket,” Greendale said. SEE STREAMLINK, PAGE 25 Entire contents © 2016 by Crain Communications Inc. Industry-school pairings give students head start By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty Students’ exposure to the medical professions at Cleveland’s new Lincoln-West School of Science & Health won’t be limited to the occasional field trip or job shadowing experience. Instead, they’ll be spending time on The MetroHealth System’s main campus every week. The school, which the school board must still approve, will allow students to be exposed to the hundreds of jobs available in the health care industry. Students will still take traditional high school courses at Lincoln-West on West 30th Street, but will also spend time in lectures, lab work and more on the hospital’s campus off West 25th Street. Cleveland Metropolitan School District CEO Eric Gordon described it as a “year-long experience of trying on the doctor’s coat.” While embedding a high school campus at a hospital could be contentious in most districts, Cleveland has a history of working with industry partners to expose students to skilled professions — and those relationships are only deepening. Take MC2 STEM High School, which opened in 2008 and really “bloomed” because of industry partnerships, said head of school Feowyn MacKinnon. Instead of a traditional school building, classes are held at locations like the Great Lakes Science Center in the ninth grade or General Electric’s Nela Park campus in 10th. GE was the school’s first company partner — it helped develop the curriculum, provided mentors and tutors and gave them space rentfree, MacKinnon said. The company relied on the school for education expertise, while the school relied on GE for insight into the industry. The benefit to GE is a possible future employment pipeline. Much has been made of the impending manufacturing skills gap, and these partnerships are one way the industry has been involved. SEE INDUSTRY, PAGE 22 20160620-NEWS--2-NAT-CCI-CL_-- 6/17/2016 11:08 AM Page 1 20160620-NEWS--3-NAT-CCI-CL_-- 6/17/2016 1:17 PM Page 1 37Beĺĺƚ±ĬŅĺ±ĬÚBŅƚŸå PRO-AM GOLF TOURNAMENT aŅĺÚ±ƼØIƚĺåƖLjØƖLjŎƅ±ƋĘåa±ƼĀåĬÚ±ĺÚĜÚčåĬƚÆ Presented by Truline Industries and University Hospitals, the Ronald House Pro-Am Golf Tournament is the longestrunning and most successful fundraising event in the history of the Ronald McDonald House of Cleveland. Over the past 36 years, the tournament has raised more than $3.8 million to support the Ronald McDonald House’s mission of keeping families close when they need it most. Led by committee chairman Andy McCartney, this tournament is made possible by the dedication of our committee members, sponsors, and golf professionals. PRESENTING SPONSORS {)FeX{ec){kck UNDERWRITING SPONSORS ® k{ke){kck American Consolidated Industries, Inc. BlueBridge Networks Bowden Manufacturing Carnegie Investment Counsel The Crawford Group Davey Tree Expert Company Dawson Insurance, Inc. Deloitte Elk & Elk Flight Options Garson Johnson HC Murray Group Xåý)ĬåÏƋųĜÏ Millwood, Inc. Moen, Inc. NSK Industries PwC Resilience Capital Partners Resource Strategies, Inc. Ronald McDonald House Charities of Northeastern Ohio The Sherwin-Williams Company ShurTech Brands LLC The Spyglass Group Talmer Bank and Trust Taylor Oswald Wellspring Financial Advisors Zenith Systems, LLC {)FeXBecU× IMG and Suburban Press Our heartfelt thanks to the PGA and LPGA tour professionals and the NOPGA local resident professionals for their commitment to the Ronald House Pro-Am event. TOUR PROFESSIONALS: Zac Blair, Bud Cauley, Jason Dufner, Jason Gore, Trevor Immelman, Jason Kokrak, Nancy Lopez, Peter Malnati, Larry Nelson, Carl Pettersson, Dicky Pride, Dave Stockton, Hal Sutton, Kyle Thompson and Harold Varner RESIDENT PROFESSIONALS: Dominic Antenucci, Mark Bixler, Jennifer Creech, Matt Creech, Mark Evans, Jimmy Hanlin, Michael Kernicki, Jim Logue, Rob Moss, David Mottice, Drew Pierson, Bill Reilly, John Sico, Mark Sierak, Tom Waitrovich, and Charlie Wood ĜĺÏåŎĿƀĿØƋĘåŅĺ±ĬÚaÏ%Ņĺ±ĬÚBŅƚŸåŅüĬåƴåĬ±ĺÚŠaBšØ±ĺŅƋěüŅųěŞųŅĀƋŅųč±ĺĜDŽ±ƋĜŅĺØʱŸŅýåųåÚ±ÏŅĵüŅųƋ±ÆĬå home-away-from-home for families of children receiving medical treatment at area hospitals. In addition to the 55-room BŅƚŸåŅĺ)ƚÏĬĜÚeƴåĺƚåØaBŅýåųŸü±ĵĜĬĜåŸŅüŞåÚĜ±ƋųĜÏŞ±ƋĜåĺƋŸ±ÏŅĵüŅųƋ±ÆĬåŸŞ±ÏåŸƋŅųåŸƋ±ĺÚųåÏʱųčå±ƋŅĺ±ĬÚ McDonald Family Rooms at Cleveland Clinic Children’s, Fairview Hospital, MetroHealth Medical Center, and UH Rainbow Babies & Children’s. RMH relies on the generosity of the local community to provide support and services to the more than 100,000 individuals it serves annually. ƵƵƵţųĵĘÏĬåƴåĬ±ĺÚţŅųč 20160620-NEWS--4-NAT-CCI-CL_-- PAGE 4 6/17/2016 2:57 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS INVESTMENT SALE THREE FLEX BUILDING PORTFOLIO • MULTI-TENANT 1652, 1658, 1664 EAST HIGHLAND ROAD, TWINSBURG East Highland Road Group planning to make MidTown a place to stay By STAN BULLARD 1652 sbullard@crain.com @CrainRltywriter E. Highland Rd. 1658 21,676 SF 100% Leased E. Highland Rd. 36,598 SF 100% Leased 1664 ASKING PRICE: $4,372,980 CAP RATE: 10% PRICE/SF: $44.54 E. Highland Rd. 36,900 SF 100% Leased TERRY COYNE, SIOR, CCIM Vice Chairman 216.453.3001 tcoyne@ngkf.com www.TerryCoyne.com SWAP Is your banker making you gamble for a fixed rate loan? Just say NO! 5 to 10 year fixed rate loans with simple prepay or no prepayment penalty options available. No derivatives! No swap contracts! Just straight balance sheet funds! Contact Jonathan A. Mokri 440.526.8700 jmokri@cbscuso.com www.cbscuso.com Business Lending in Partnership with Area Credit Unions SM The strength of downtown Cleveland’s apartment market is spilling across the city’s Innerbelt to MidTown Cleveland, where plans have taken root to transform two empty 1950-vintage office buildings to housing. The larger of the projects is a plan by Inspirion Group of Cleveland to convert a vacant, eight-floor building at 3101 Euclid Ave. to residential use with the addition of 90 apartments in the structure, including adding a ninth-floor penthouse. It’s an estimated $12 million project, according to Mark Schildhouse, Inspirion executive vice president and general counsel. Inspirion on April 7 shelled out $1.75 million to buy the building from Crystal Kingdom Development LLC, according to Cuyahoga County land records. Inspirion will benefit from the prior owner’s efforts to ready the building for redevelopment by removing old offices and asbestos as it gutted the structure, Schildhouse said. The group plans to receive federal historic tax credits and seek Ohio Historic Preservation Tax Credits to help finance the conversion, which will turn the building into market rate — but affordable — apartments at a lower price point than downtown apartments, Schildhouse said. The group intends to seek the highly competitive state tax credits later this year, but is taking the first step by asking the Cleveland Landmarks Commission to certify the structure as a city landmark at its meeting on Thursday, June 23. Inspirion hopes to have the building ready to open by 2018, Schildhouse said. “Our goal is not to compete with the central business district but offer a nice alternative,” he said. “We’d like to attract the teaching population from Cleveland State and health Inspirion Group plans to convert the vacant building at 3101 Euclid Ave. into an apartment complex. (Stan Bullard) care professionals from University Circle. The nice thing is that we have a stop for the HealthLine (bus-rapid transit) in front of the building.” Schildhouse has experience in readying real estate developments from serving as general counsel to Willoughby-based K&D Group, a prolific converter of downtown office buildings to apartments. He said Inspirion’s principals are business people with a bug for real estate ownership who want to move into development. Inspirion’s principals are Lemma Getachew and Guenet Indale, a husband and wife who both emigrated at different times from Ethiopia to the United States. Getachew owns Central RX Pharmacy of Cleveland. Indale owns Rx Home Health Provider, which provides nurses and other health care services to homes, Schildhouse said. Inspirion also is a partner in the conversion of the four-story office building at 2828 Euclid Ave. to 50 apartments by Innerbelt Lofts LLC, a development group that includes Gordon Priemer, a longtime real estate owner and developer who owns the Does your asphalt surface look like this? Then it’s time to make a call to: MANAGE RISK. 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That project is not seeking historic tax credits because it required opening up one of the building’s walls to add windows. Both projects have been recently hatched. Innerbelt Lofts last September purchased the vacant building from the United Food & Commercial Workers for $775,000, according to Cuyahoga County land records. Priemer was traveling last week, according to an assistant, and did not return three calls from Crain’s Cleveland Business. Jeff Epstein, executive director of the MidTown Cleveland nonprofit development group, said he is excited about both proposals because they are the first additional residential development in the area in decades. Repairs of the 3101 Euclid building are especially valuable, Epstein said, because of the poor condition of its exterior. Although MidTown is typically thought of as a commercial district, Epstein said it has 2,000 residents. Location is working to MidTown’s advantage in a quest to become home to a mixture of property types. “There is tremendous development pressure here — from the west from downtown Cleveland where available apartments are scarce as well as from the east from University Circle,” Epstein said. CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: (216) 522-1 1383; www.crainscleveland.com Reprints: 212-210-0750 Krista Bora kbora@crain.com, Customer service and subscriptions 877-824-9373 Volume 37, Number 25 Crain’s s Cleveland Bus sines ss (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2016 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s s Cleveland Bus sines ss, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-2 210-0 0750 Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20160620-NEWS--5-NAT-CCI-CL_-- 6/17/2016 4:06 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 5 AIRPORT CONTINUED FROM PAGE 1 keep political views out of the equation. The host committee is working with the Downtown Cleveland Alliance and Cuyahoga Arts and Culture on entertainment in the terminal, but it has yet to release details. For the 2012 Republican convention, Tampa International Airport serenaded visitors with a middle school jazz group, a steel drum band and a barbershop quartet. “My advice? Have fun,” said Tampa airport spokeswoman Janet Zink. “Engage people on social media, especially Twitter. The convention is a great opportunity to showcase your airport.” The Hopkins renovation adds uncluttered directional signs in place of the former plum-colored signs that could be confusing to follow. The airport erected canopies over its premium Red Lot and economy Blue Lot and covered walkways into the terminal. Behind the scenes, a $27 million consolidated baggage system will be under construction until 2017. A fortified taxi fleet outside the terminal will help get the crush of convention passengers to hotels. Hopkins has added a second taxi lane and will be able to provide 350 to 400 cab rides an hour, said Fred Szabo, interim director of the Cleveland Airport System. Individual delegations are scheduling hundreds of charter buses, hired-driver limos and sedans known as “black cars.” Hopkins is calibrating ground transportation using hour-by-hour passenger counts from the airlines. The Republican Party’s Committee on Arrangements is in charge of shuttling delegates between hotels and the main convention site at Quicken Loans Arena. Committee spokesman Dave O’Neil said a fleet of 350 charter buses in Cleveland will move 12,000 people in the first 40 minutes following each convention session. Airlines at Hopkins are adding flights and seating capacity temporarily. United will have about 2,000 extra seats, with more in-bound 737s from San Francisco, Houston, Washington and Chicago, and will use a bigger jet for a flight in from Newark. Post-RNC, United has added two flights to Philadelphia for journalists headed directly to the Democratic convention there, and extra flights to Chicago, Houston and Washington. American is swapping out 50-seat regional jets for 76-seaters on its new Cleveland-Washington route during the week of the RNC. Presumptive presidential nominee Donald Trump uses a six-passenger Cessna jet and a Boeing 757 airliner known as “Trump Force One” for travel. His campaign staff has reserved space at both Burke and Hopkins for the planes, Szabo said. The Transportation Security Administration’s stepped-up role during the convention will be apparent in the number of blue-shirted officers and dog teams at Hopkins and Burke. Don Barker, TSA’s federal security director for Ohio, said the agency is “beefing up almost all of our assets because of our counterterrorism mission.” TSA also wants to avoid having frustrated travelers stuck in long security lines. The agency has been under fierce criticism for airport security waits that have stretched in some cases to hours, causing travelers to miss flights. More than 700 new screeners nationwide are supposed to be in place this month. For the Republican convention, TSA is adding “a significant number of additional screeners.” Barker said, and dropping in extra baggage screening equipment during peak periods. Those are projected to be July 21 through about July 25, when conventioneers are leaving in droves. “The incoming’s not so big a deal Are you an individual with $10 million or more seeking advice? for us,” TSA spokesman Mark Howell said. “It’s the outgoing that’s a bear, at least for the delegates.” TSA’s security force will include VIPR (Visible Intermodal Prevention and Response) teams. They’re made up of federal air marshals working with local law enforcement and meant to provide a visible deterrent. VIPR teams also will be at RTA stations and on the Red Line rapid leaving the airport. They will help the U.S. Secret Service with screenings at The Q and at a July 17 reception at the Rock and Roll Hall of Fame. TSA also is increasing the number of undercover behavior detection officers watching for suspicious behavior. Eight additional canine teams will be at Hopkins. Passengers standing in line can expect one of the bombsniffing dogs to pass by. The agency avoids German shepherds because some people find them intimidating and relies on retrievers and other “floppy-eared” breeds. Douglas Laird, a former security director for Northwest Airlines, said dog teams may give passengers a sense of safety, but he doubts they make much difference. “People are not going to come through a checkpoint with an assembled (improvised explosive device),” he said. Some 300 general aviation aircraft are expected to bring delegates and dignitaries to the convention, with many of those planes landing at Burke. Flights headed there that haven’t been screened on takeoff will have to fly into Youngstown or Akron “gateway” airports, where passengers and planes must clear TSA security before continuing on. Planes carrying delegates lodging in Summit County or nearby may stick to the Akron airport. The airport is prepared to park as many as 100 planes, and is making sure the terminal sparkles. “We take very seriously our re- A sleek new facade is part of the $42 million renovation at Hopkins. (David Kordalski) sponsibility to make a great first impression. So we are fluffing and buffing,” said Kristie Van Auken, senior vice president. At Burke, the host committee has lined up 160 volunteer greeters. The airport got a taste of what to expect on its airfield during the GOP presidential debate last August. James Price, manager of Landmark Aviation, Burke’s fuel and hangar services provider, has said 100 aircraft were packed onto the tarmac during the event. This time, temporary flight restrictions that the Federal Aviation Administration will put in place on the eve of the convention are expected to leave Burke off limits to takeoffs and landings during the event. That restriction and the sheer number of private aircraft will make for spillover activity at Cuyahoga County Airport, and possibly Lost Nation Airport in Willoughby and Lorain County Regional Airport in Elyria. “We’re hoping for a lot of traffic,” said Michael Toman, director of operations at Lost Nation, which is 15 nautical miles from The Q. “We’ve put a lot of work into getting things ready.” Perhaps no airport is positioned to elevate its profile during the convention more than the county airport. It could end up landing and overnighting dozens, if not more than 100, private jets. The airport will be outside the restricted zone that requires the Akron or Youngstown security stop because the FAA allowed a “cutout” — a 3-mile bite out of a 10-mile airspace cookie — so the airport can operate without restrictions. Aaron Thayer, general manager of the Cleveland Jet Center, the airport’s fuel, maintenance and overall services provider, said that status could mean a surge in business. “It’s an unknown quantity what the (Akron and Youngstown) security delay could involve,” he said. “If on one of those aircraft something is found, that changes the whole game. We’ll be the closest airport with uninterrupted access to the convention.” Thayer and his staff began preparing for the RNC two years ago, when Cleveland was named as the convention city. They visited a counterpart aeronautical services company at Tampa International Airport, and they checked out the Augusta Regional Airport, which helps manage the battalion of private jets flying in for the Masters Golf Tournament. “Cleveland is going to be on a world stage for this week,” Thayer said. “That initial good first impression is one we’re going to make.” O H I O ’ S AW A R D - W I N N I N G G A M I N G , D I N I N G A N D E N T E R TA I N M E N T D E S T I N AT I O N Advice and insight across generations 5PEBZCBDLFECZUIFFYQBOTJWFHMPCBMSFTPVSDFTPG6#4BOE JUTZFBSUSBEJUJPOPGTFSWJOHTPNFPGUIFXPSMEÁTXFBMUIJFTU GBNJMJFTPVSUFBNIBTOFWFSCFFOCFUUFSQPTJUJPOFEUPTFSWFPVS BGGMVFOUDMJFOUTBOEUIFJSGBNJMJFT'SPNDPNQMFYNVMUJHFOFSBUJPOBM QMBOOJOHUPXFBMUIQSFTFSWBUJPOTUSBUFHJFTBOEUSBOTGFSXFBSFZPVS USVTUFETPVSDFPGGJOBODJBMTUFXBSETIJQBOEBEWJDF U PCOMI NG ENTERTAI NMENT Cleveland Wealth Management Team William G. Murphy, CIMA® 4FOJPS7JDF1SFTJEFOU¾ 8FBMUI.BOBHFNFOU 1SJWBUF8FBMUI"EWJTPS Owen C. 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And in its first real marketing push, fanDaction, which is led by Al Ross and his son, Brian, recently agreed to an endorsement deal with Pete Rose — a Major League Baseball legend who has been banned since 1989 for gambling on the game. Al and Brian Ross founded fanDaction with their nephew, Michael BenShimon, in April 2014. (BenShimon, a Las Vegas investment banker, keeps track of the company’s finances, but isn’t involved in the day-to-day operations.) Al Ross said fanDaction aimed to really get going in the spring of 2015, when it announced a deal with famed jockey Gary Stevens to promote its horse racing games prior to the Kentucky Derby. “We just weren’t ready,” Ross admits now. FanDaction — which offers NFL, MLB, NBA, NHL and horse racing competitions on its website — took a few months to regroup before its DFS games were ready in November 2015. “I’ll be honest,” Ross said. “We didn’t have anything to make someone want to come to business with us. You have to have something, even if you have the best variety of games, bar none. You have to have the right team to market yourself properly.” The 57-year-old Ross, a serial entrepreneur who says he started an alarm company at 20, believes that’s in place now with Rose pumping up their product. Discussions with baseball’s all-time hits leader began about 20 months ago, but at the time Rose was still holding out hope that he would be reinstated by MLB. When MLB commissioner Rob Manfred upheld Rose’s lifetime ban in December, the deal with Rose started to come to fruition. “We put him off until Mr. Manfred made his decision,” Rose said of Al Ross. ‘Pete’s Picks’ Women Who presents Public Media JULY 15 Washington Week with Gwen Ifill on PBS JULY 17 JULY 20 Election Stories from Lunch and Learn with Women Behind the News, Korva Coleman featuring NPR’s Mara of NPR Liasson, Rachel Martin and more! Coming to Cleveland! Tickets at ideastream.org/PublicMediaRocks There are hundreds of small DFS companies, and each is fighting for its life in an industry that has been beset by lawsuits and state legislators who have said it violates laws against gambling. FanDaction is confident it can stand apart because of a more unique variety of online competitions, which includes contests that split NFL and MLB games into first and second halves. For example, a fantasy participant can join an NFL contest in which the winner is determined at halftime, then join another competition for the second half. FanDaction also has contests in which participants can choose players without being restricted by a salary cap, which Ross believes is a better fit for those who know the sport much better than they do the data. The deal with Rose calls for the 75year-old to make “Pete’s Picks” for fanDaction’s “Pick 5” contests. That game, which doesn’t have a salary cap, gives participants the chance to use Rose’s five player selections as a The fanDaction kiosks could be in as many as five local bars in the next week. (Contributed photo) challenge to go up against another participant, or face a DFS player who is willing to risk a few bucks (or considerably more) on Rose’s picks. And yes, Rose said he will be making the selections himself. “I think the work that you put into it is watching the (MLB) games on a daily basis,” Rose said of his fanDaction preparation. “It doesn’t take me long the night before to make my picks and send them to Al. It’s not that time-consuming if you’re on top of it. I have my favorite players, and I know the players who are hot and cold at the moment.” Rose made his first fanDaction selections on Saturday, June 11. Ross admits the site doesn’t have a lot of participants yet, but he thinks the opportunity to put some money on or against Rose’s selections could be a selling point. “The larger we get, the more customers we get that challenge him daily,” Ross said of Rose. Kiosks are part of plan Every DFS service would probably say its games are the most enjoyable and/or the most unique. But fanDaction, according to several DFS experts with whom Crain’s spoke, does have a one-of-a-kind service it just started rolling out. Ross partnered with Jerry Bishop, whose Superior Games used to make kiosks for internet gaming, to produce DFS registration kiosks that will be placed in sports bars around the country. Bishop said the kiosks, which are 21 inches wide and stand four feet, provide a simple service to bar patrons who want to participate in a fanDaction contest. “This is strictly a registration device,” Bishop said. Any DFS player can play from the comforts of home or on the go via their mobile device. The biggest benefit of the kiosk, though, is it allows a bar or a group of bars to hold a private, in-person contest — one for which the players have to sign up on location. All deposits and payouts are done digitally via fanDaction, as is the case with any DFS provider. But the kiosks give the bars the chance to run a short contest for those on hand — a firsthalf NFL contest, for instance — or compete against other participating bars in a series of competitions. “People don’t think about kiosks in a sports bar because all they think about is online,” Ross said. “My best way to ever attract a gambler is in a sports bar.” The first fanDaction kiosk, made by Bishop’s Akron-based Sports Fantasy Today LLC, was scheduled to be delivered to Whiskey Ranch CAK, located near the Akron/Canton Airport, on Friday, June 17. Bishop said he has 50 kiosks in stock, and he can make many more. He’s already got dealers lined up in six states, counting Ohio. As many as four or five Northeast Ohio locations could have the kiosks within the next week, he said. Ross said the kiosks cost $2,200, an amount that is paid by an entrepreneur who wants to cut a deal with an establishment that wants to host in-person DFS contests. The entrepreneur gets a cut of the proceeds produced by the competition, and he or she can then share some of the revenue with the bar, depending on the agreement the parties strike. Bishop and Ross say the most obvious benefit for a bar is the kiosks are a marketing tool to bring in customers. As far as anyone knows, they’re perfectly legal. Jessica Franks, the director of communications for the Ohio Casino Control Commission, hadn’t heard of a DFS kiosk until she was asked about fanDaction by Crain’s. Franks said that, as the state gambling laws are currently written, DFS doesn’t “really fit neatly into the definition of casino gaming.” But, she added, unless legislators decide to regulate DFS at the state level, the industry will continue to exist in a gray area. “How is it ultimately defined? That’s a question we’re waiting to be answered,” Franks said. Geoffrey Rapp, the associate dean for academic affairs at the University of Toledo College of Law, said DFS kiosks seem like “a natural evolution from video poker terminals and lottery ticket vending machines.” He warned, however, that “physical kiosks are much more susceptible to regulatory interference.” And if DFS ends up being labeled as gambling by state or federal legislators, “there may be concerns for the holders of liquor licenses” at which the kiosks are housed, Rapp said. Ross isn’t worried. “My decision is a simple decision,” he said. “Either a state is operating under the federal law (which classifies DFS as a game of skill), or they don’t believe it and want to challenge it like some of the attorney generals did. If there’s a state that challenges it, we won’t do business in that state.” Rose, the baseball legend who knows a thing or two about scrutiny, made sure to point out that Major League Baseball has an ownership stake in DraftKings, which, along with FanDuel, is one of the DFS industry’s two under-fire heavyweights. “Don’t forget, the commissioner said it’s not gambling,” Rose said. 20160620-NEWS--7-NAT-CCI-CL_-- 6/17/2016 4:22 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 7 Flats cost overruns call for reworked loans By STAN BULLARD sbullard@crain.com @CrainRltywriter Keeping the now-rocking Flats East Bank Neighborhood rolling through the fits and starts of the Great Recession was tough, but a city of Cleveland-led drive to restructure government loans that aided the project show it was even tougher than known at the time. The $750 million project razed old buildings along Old River Road facing the Cuyahoga River from Main Avenue to the Port of Cleveland and took one of the oldest parts of Cleveland back to bare ground in 2008. Then most work ground to a stop in the financial crisis. Financing the project was changed to get it started again in 2012. Two phases of the project have since transformed the east side of the river adjoining downtown with the 2013 opening of the Aloft Hotel and Ernst & Young Office Tower and, over the last year, the Flats at East Bank apartments, restaurants and a public promenade on the riverside. However, Cleveland officials say a $30 million cost overrun on the project prompted complicated legislation that Cleveland City Council adopted on May 18 that authorizes the Jackson administration to rework terms of almost $34 million in city loans to the project. The largest is a $30 million U.S. Department of Housing and Urban Two of the three phases have been completed in the Flats East Bank Neighborhood. (Stan Bullard) Development 108 Loan the city received that the project has paid down to $27 million. Under the workout, the city has asked HUD to reduce a 10%, or $3 million, debt reserve to $2 million and allow that money to be used to make payments on the loan as well as to allow the developers to refinance the loan. Tracey Nichols, Cleveland economic development director, said in an interview last Thursday, June 15, that she hopes to hear soon about HUD’s decision on the change. The other provisions include changes in city loans from programs such as the Vacant Property Initiative and Core Cities loans that developer Scott Wolstein, a principal in Flats East Bank, agreed to pay in advance at a discounted rate. Those loans total about $6 million due in 2029 through 2036 that Wolstein will repay for $2.3 million by the end of 2016. Wolstein, his mother Iris Wolstein and Fairmount Partners developed Flats East Bank. The workout allows Flats East Bank to refinance its other loans on the project, Nichols said, and gives the developers more breathing room on the repayments. She said the refinancing also should allow Flats East Bank’s developers to reduce the number of loans from 34 sources to a more manageable number. Wolstein said in an email that the refinancing is too complicated to discuss and is partially due to reserves originally set up to typically earn 5% interest not earning interest in the current low-interest rate environment. He also blamed what the city described as the “overruns” on provisions the developers added to make public areas of the project more attractive. He declined to be more specific. Wolstein also would not agree to an interview on the refinancing or respond to additional emails. Nichols said several factors inflated costs on the project, many related to the brownfield conditions. Warehouses had been built on the site in the 1800s that covered over rail lines, petroleum product and coal gasification tanks that Flats East Bank had to remove. “Because federal funds were involved, it also became an archeological site,” Nichols said. “They were photographed before they were removed” and dirt was replaced. Water also presented challenges for the project on the river near Lake Erie. During construction, Flats East Bank found the bulkheads next to the river near Main Avenue were failing and had to be replaced, Nichols said. New real estate developments also have to provide for storm water runoff, she said, which was accomplished by putting a detention basin under the project’s streets. That is costlier than putting it above ground — but wise in an urban area where land is dear near the water. Nichols said reworking the financing is justified because two of the three phases of the project are finished — risk is greatest and so are precautions for construction unknowns — and the project is priceless. “Overall, the project is great for the city, from the perspective of jobs and from the perspective of the waterfront,” she said. A document Nichols provided to Cleveland City Council shows the jobs at the project are almost as big a surprise as the sharp appearance of the long public boardwalk next to the river. The city says the developer reports 2,016 jobs were created at the project as of Dec. 31 — exceeding a commitment to create 1,620 jobs. 20160620-NEWS--8-NAT-CCI-CL_-- PAGE 8 6/16/2016 3:35 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS Akron gears up ‘slowly but surely’ for By JUDY STRINGER To Greater Akron, the intensifying buzz during this final run-up to the Republication National Convention is still just that – buzz. In about one month, 50,000 visitors are expected to flock to Cleveland for the four-day RNC, some of them spilling over into nearby communities. Locally, however, little is known about how big of an impact the convention might have 35 miles south of ground zero, Quicken Loans Arena, according to local tourism and business leaders. Some Akron organizations say they will have all hands on deck during the third week of July, while others are planning to operate “business as usual.” “Right now we have staff scheduled to go about normal daily business,” said Jason Shoffstall, general manager of Crave restaurant in downtown Akron. “If it gets really busy, our staff is able to accommodate above and beyond what we may get normally.” There is no doubt that Akron will see RNC-fueled visits, according to convention spokesman Dave O’Neil. Although O’Neil did not provide any specific estimates, he said a “sizable number” of delegates and media will be housed in and around the Rubber City. “No city, other than Cleveland, in Northeast Ohio will experience more benefit than Akron,” he said. “If you look at hotels in the Akron area, you can assume that most of them will be playing a role in this summer’s convention. What’s great about that is a lot of the events that the delegations will be doing will take place in those hotels.” Akron/Summit Convention and Visitors Bureau Vice President Jim Mahon said local hotels were part of the initial bid to win the convention, with Summit County committing 70% of its hotel capacity, or more than 15,000 room nights, to the RNC host group. Those bodies in beds should translate into several thousand minds to entertain and stomachs to feed as well. How and when the appetite for Akron food and entertainment will surface appears to be the great unknown. “We have been told by Destination Cleveland and others to have modest expectations as far as how much time people will have to move around,” Mahon said. “We would love to think those (RNC visitors) in Cleveland will come down to shop and see an attraction. How likely that is, however, is what they want us to be reasonable or realistic about.” Mahon and his team have focused on a “geo-targeted” campaign, dropping off visitors’ guides in downtown hotels as well as those in surrounding neighborhoods like Cuyahoga Falls and Fairlawn. The goal is to provide a range of quick dining and entertainment opportunities for the media and delegates based in and near Akron. “We want to make sure those people get out and don’t just sit in their hotel,” he said. The bureau also has worked closely with the city of Akron and neighboring municipalities to ensure latenight options for guests “wired” after prime-time convention activities, he said. Several bars and restaurants countywide took the opportunity to apply for temporary liquor license extensions, some as late as 4 a.m. Stan Hywet Hall & Gardens hopes to attract out-of-town visitors during the RNC. (Contributed photo) Entertaining visitors Meanwhile, Greater Akron tourist attractions, such as Stan Hywet Hall & Gardens and the Cuyahoga Valley Scenic Railroad, are gearing up — encouraged by the possibility RNC visitors may have daytime hours to spare with official events taking place in the evening. The CVSR, for instance, will pro- You’re working hard at growing your business..... We can help you. ns a o L s s usine low as s a SmallRB s e t a * % 5 9 . 3 ! today am. 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In addition, CVSR is using RNC-sanctioned digital and social channels and other outlets, such as a website portal organized by the Akron Beacon Journal and the Akron/Summit CVB, to highlight its bike-aboard program as a wellness option for convention visitors. The scenic railroad is also one of the few local organizations with concrete plans to host special delegate events. Most area hotels and hospitality amenities have yet to land RNC-specific events. Event planning 20160620-NEWS--9-NAT-CCI-CL_-- 6/16/2016 3:52 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 9 r RNC visitors “No city, other than Cleveland, in Northeast Ohio will experience more benefit than Akron.” — Dave O’Neil, Republican convention spokesman has been delayed somewhat, Mahon explained, because not all of the delegates and media have been assigned hotels and are awaiting assignments to make nearby plans. According to Gillan-Shafron, two RNC groups have reserved train tours, and she expects more to sign on. “We have a number that are waiting (to finalize plans.) Their schedules are fairly fluid right now,” she said, adding that the reserved tours will take place outside of CVSR’s regular train runs to avoid limiting access, “especially that week when so many visitors will be here. We want to make sure they have as much access to Cuyahoga Valley National Park as they can.” Bliss in spotlight This month, the Summit County Historical Society of Akron in collaboration with the University of Akron and historian Victor Fleischer will unveil a Ray Bliss exhibit on the fourth floor of the Ohio Building in the heart of Akron’s business district. They hope the exhibit will attract convention-goers and highlight the city’s role in politics. An important figure in the 1960s and ’70s Republican Party, Bliss was an Akron native who served as chairman of the Republican National Committee from 1965 to 1969. Fleischer is providing photographs, letters and other Bliss memorabilia. The historical society is accenting the display with clothing from the time period. “When you see a display, you might venture over. But one thing we have found for sure — with exhibits at the library and elsewhere — is that when we start putting clothing in there, people are drawn to it like flies,” said Leianne Neff Heppner, president and CEO of the Summit County Historical Society. Gailmarie Fort, vice president of outreach and communications at Stan Hywet, said she has fielded a few special event inquires from incoming RNC groups, but — like her colleagues at CVSR and the historical society — feels the media spotlight that comes with the convention is the best opportunity to highlight her venue and the Akron area as a whole. “We’d love to get some media here and hope that would be a catalyst for future tourism all over the Akron area,” Fort said. In the end, Mahon added, it does not really matter if the mid-July visitors are delegates, media or part of the RNC operations and support crews. Every set of eyes is one more chance for Akron to claim the big prize. “Really what we want is to set the stage for some return visits,” he said. “Everybody is slowly but surely getting mobilized and getting things in place to do that.” SCHEDULE YOUR VISIT AT www.himssinnovationcenter.org #EmpowerHIT CFO OF THE YEAR PRESENTED BY HONORING NE OHIO’S TOP FISCAL OFFICERS NOMINATIONS OPEN • DEADLINE: JULY 8 CRAINSCLEVELAND.COM/CFO 20160620-NEWS--10-NAT-CCI-CL_-- PAGE 10 6/16/2016 4:50 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS Opinion From the education beat Education every college kid needs Editorial One of a kind When Republicans come to Cleveland next month to nominate a presidential candidate, they’ll see a city shaped, to a large degree, by George Voinovich. They’d do well to emulate the characteristics that made Voinovich, 79, who died unexpectedly in his sleep on June 12 at his Collinwood home, such a towering figure in Cleveland and Ohio politics: his civility, modesty, independence and dedication to doing the many jobs he was elected to do. Voinovich’s public career started as a member of the state Legislature and, over more than four decades, led him to become the mayor of Cleveland, the governor of Ohio and a two-term U.S. senator. Those years as mayor, 1979 to 1989, were critical to changing not just national perceptions about Cleveland, but the city’s fiscal position and its physical landscape. Voinovich was instrumental in putting together a plan to dig Cleveland out of its 1978 financial default, as eight local banks, with the help of a state guarantee, in October 1980, lent Cleveland $36.2 million. He forged a working relationship with thenCity Council president George Forbes, a Democrat. Before Voinovich left office, the city’s bonds returned to investment grade, laying the groundwork for prudent management that exists in the city to this day under Mayor Frank Jackson and has helped Cleveland avoid the fiscal calamities of Detroit and Chicago. Voinovich also entered into the local lexicon the muchused phrase “public-private partnership” by convincing business people and the philanthropic community to bring their expertise to City Hall and to reinvest in Cleveland. This was no easy task in late-’70s/early-’80s Cleveland, but it led companies, including BP America and KeyCorp, to establish their headquarters downtown and serve as anchors of Public Square, which itself is sporting a new look this summer. He also laid the groundwork for civic projects such as the Rock and Roll Hall of Fame and the Gateway sports complex of Progressive Field and Quicken Loans Arena — all key venues for the Republican National Convention and related events in July. In a 2010 Crain’s profile of Voinovich, Richard Pogue, a partner and later managing partner of the Jones Day law firm and a key figure in public-private cooperation, said of Voinovich, “He’s low key in his style, but his determination is fierce. Once he made up his mind, he was hard to stop.” Indeed he was. Even after retiring from the Senate in 2010, he stayed active politically and spoke out on matters including fiscal policy — true to his frugal personal nature, Voinovich was a fierce advocate for budget sanity in every position he held — and the Republican Party’s presumed presidential nominee this year, Donald Trump, whom he called a “phony” and a “con artist.” Voinovich had the respect of people in both parties, which, sadly, stands out as somewhat remarkable these days. Sen. Sherrod Brown, a Democrat, last week described Voinovich as “a man of strong conviction” who was “always willing to listen to the other side of an argument and put what he believed was best for our state and country ahead of partisan politics.” Sen. Rob Portman said Voinovich was “a man of integrity who was effective at bringing people together to achieve meaningful results.” The Republican Party that Voinovich served with distinction stands ready to come to Cleveland and nominate someone whose commitment to the hard work of government is questionable, and whose ability to reach out to all Americans seems nonexistent. George Voinovich represented the best of his party. We hope those concerned about its current direction live up to his legacy and speak out for a more productive future. PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com) CLEVELAND BUSINESS MANAGING EDITOR: Scott Suttell (ssuttell@crain.com) SECTIONS EDITOR: Timothy Magaw (tmagaw@crain.com) When students first step foot on Oberlin College’s campus, they’re required to take part in a peer-to-peer workshop on consent and relationships. It’s important to empower students to make their campus safer, to teach them to hold one another to higher standards, said Meredith Raimondo, Title IX coordinator for the school. After all, faculty and staff aren’t often around when things go wrong. Sexual assaults on campus are, unfortunately, nothing new. Nor are they rare. In 2014, the last year for which the federal government has available data, more than 180 rapes were reported on Ohio’s post-secondary campuses. It was certainly an issue when I was in college 10 years ago, but it was one discussed behind closed doors. I can’t remember a single instance of an authority figure talking to me about what rape, consent or sexual harassRachel Abbey ment looked like in daily life. McCafferty Thankfully, it sounds like that at least has changed at local schools. Schools such as Cleveland State University have incoming students take an online course on consent and sexual violence. The University of Akron has begun teaching students about bystander intervention, which arms students with ways to step in safely if they see someone in a potentially risky situation. In recent years, Kent State University developed a new office to serve as a single point of entry for students who report sexual assault. The Ohio Department of Higher Education even has an entire initiative — Changing Campus Culture — focused on improving the climate on the state’s campuses of higher learning. The schools are talking to students about rape, sexual harassment, abusive relationships and stalking. While there’s an ongoing debate about whether campuses are an appropriate place to address sexual assault, these problems are about more than just student safety. It’s also an issue of academic success. Raimondo said the number one reason students come forward about trauma is because they’ve hit an academic wall. As colleges work to retain and graduate students, the stress of sexual violence can present a big hurdle. High-profile cases like the one in Stanford that made headlines earlier this spring, when a former student was given a light sentence after being convicted of sexual assault, bring the issue of rape on campus into the spotlight. The idea that such a horrific act could happen in a place of learning and growth rightfully angers people. And it’s often explained away by the party culture prevalent on many college campuses. But the truth is, these incidents can happen anywhere, at any time, and colleges and universities have a unique opportunity to educate students about what healthy relationships look like and how to step in when something feels wrong. And these are lessons they can take out into the world after they graduate. At Crain’s, my charge is to write about the business of higher education: the administrative decisions, the budget allocations and everything else that keeps the gears running at the region’s colleges and universities. But there are always stories hovering on the edge of the beat. Sexual violence on campus is one of those stories, and it casts a big shadow. But after talking to colleges this week, I’m heartened by what I heard. It sounds like local colleges are doing a better job of listening to students and working to give them the tools they need to change the culture. And Jennifer O’Connell, director of the Office of Sexual and Relationship Violence Support Services at Kent State, said today’s students aren’t likely to back down when their needs aren’t being met. “This generation isn’t afraid to speak out,” O’Connell said. Let’s hope she’s right. WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. SOUND OFF: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes. 20160620-NEWS--11-NAT-CCI-CL_-- 6/16/2016 2:26 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 11 Stockbroker fraud? Bad investment advice? Web Talk Re: RTA rate hikes, service cuts I’m not a native Clevelander and cannot speak to the history of the RTA on rates, routes, etc. I can say that Cleveland is now our home and we do know that having an effective, safe and reliable mass transit system is an asset to a city that is staring at an exciting future. For two-plus years, I have been a regular commuter from Warrensville to Flats East Bank, one of the vibrant areas of the Cleveland renaissance. Parroting a phrase that I hear all the time, “The trains are great … when they work.” Winter and early spring commuting is an adventure. When asked, drivers and other RTA staffers whisper their complaints and cite the reasons for poor service — no parts, old trains, bad management, trains come last, rather not say, not my place, etc. The trap that we have all fallen into is accepting the status quo. To protect the interests of all taxpayers RTA workers and commuters, it’s time to have an “independent” board of review and accountability. Asking the fox how things are going at the henhouse isn’t working very well. If folks agree with this, how can this get done? — Rick Defaut I can’t remember how many times I have seen RTA modify or cut service over the years when it is clear that there is a segment of Cuyahoga County that is grossly underserved — the southern area. Today, I would never have an occasion to ride because of where I live and where I work. On the short term, there would be a huge cost to build a light rail line that moves up from Brecksville or Broadview Heights, or perhaps even extend the rail service from Warrensville southbound to the county line near Walton Hills, but that’s the direction the service needs to strongly consider if it is to remain viable. — Melvin Gaines Unfortunately, the RTA is falling into the cost trap when it should be looking at how to enhance its value proposition to the region through a mix of smart expansion as well as rightsizing of underutilized lanes and routes. Why not leverage existing capacity with smarter routes to the 40,000 open (jobs) that the Fund For Our Economic Future has identified could be filled if not for physical access barriers, like adequate and consistent transportation to the job site? I would think, assuming the FFEF’s analysis is correct, this would generate significant demand and avoid the budget gap and rate hike altogether. — Joe Glick Lose money due to bad advice from your broker? 216.658.9900 | investorloss.com Re: Great Lakes Brewing Co.’s new CEO Delighted to see two REALLY nice guys (founders Pat and Dan Conway) doing well, sticking by their brand, but also opening up the possibilities with the company’s first CEO, Bill Boor. Cheers! — Peter Toomey CBC Re: Sports commission’s victories What an amazing journey for the Greater Cleveland Sports Commission. I remember the reputation of the Cleveland of years ago. This (ability to bring big sports events to Northeast Ohio) is the story of a real-life transformation of Cleveland into a very attractive American destination city. — Lowell Nerenberg Crain’s is honored in pair of journalism competitions Crain’s Cleveland Business was honored recently with 12 awards in statewide and international journalism awards competitions. In the Press Club of Cleveland 2016 All Ohio Excellence in Journalism Awards, assistant editor/sports reporter Kevin Kleps won a firstplace award in the digital media competition. His Sports Business blog took first place in the “blogs” category. The judges in their comments recognized his “good writing, clear connection with readers and knowledge of topic.” The work of former art director Rebecca R. Markovitz was recognized in five categories in the Press Club Awards, including a first place in the “spread or multiple page design” category for tabloid publications for “Building a Better Board,” which explored the composition of governing boards in Northeast Ohio. Markovitz also won two second-place awards in the “single page design” category for her “Book of Lists” cover and in the “business publications/covers” category for her front-page design on the Northeast Ohio food industry. In addition, she received two “Best in Ohio” awards: a secondplace award for illustrations and a third-place award for page design. Editorial cartoonist Rich Williams received second place in Call a trusted law firm who knows how to navigate the world of investment claims. the “single cartoon” category in the section of the competition that recognized visuals for all publications. Rich won recognition for a cartoon about FirstEnergy. In the “Business Publications” competition, Crain’s staff won third place in the “public service/investigative” category for its exploration of the most connected business people in Northeast Ohio. In addition, reporters Dan Shingler and Rachel Abbey McCafferty were recognized with a third-place award in the “features/trends” category for their story on who will lead the manufacturing industry when the Baby Boomer generation retires. Crain’s reporter Chuck Soder received third place for technology writing in the Open competition, in which all Ohio publications compete, for his story about the success rate of acquisitions for local tech companies. The Press Club awards were announced June 3 in a ceremony at the House of Blues in downtown Cleveland. Crain’s also was honored with two awards in the annual Editorial Excellence Awards competition conducted by the Alliance of Area Business Publishers, an industry group for regional business publications in North America, Canada and Australia. Markovitz won a gold award in the “best front page” category for newspapers for “The Right Mix” about trends in the local food industry. Judges from the University of Missouri School of Journalism said Markovitz’s cover “was a bold decision that creates a powerful impact. It is evident great thought went into the design, the shape and the text.” AABP also recognized her work with a bronze award for her use of “photography/illustrations” for a body of work throughout 2015. The awards were presented at the alliance’s summer conference, which was held June 8-11 in Des Moines, Iowa. Because more coverage MATTERS Get the whole story. WKSU 89.7 is your source for in-depth election coverage in more of Northeast Ohio (22 counties to be precise). 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The Akron-based accounting firm was planning out the future of the business when they noticed a debilitating talent gap. Staff was weighted on either end with senior partners poised for retirement and younger staffers, but there wasn’t a solid group of mid-level professionals ready for aging partners to pass their business on to. Suddenly, the concept of growth was less about strategy and more about simply having the human capital to sustain any meaningful expansion. Today, the firm is in the midst of its most aggressive growth plan since its founding more than 70 years ago with a goal to double the business by 2020. But it wasn’t always like this. Just a few years back, that objective wouldn’t have even been possible. “It was a panic moment about seven, eight years ago,” said chair- man emeritus Dave Gaino. “How were we going to sustain a firm with these kinds of demographics?” What created the talent gap is a story of its own. Degree programs for CPAs went from four years to five as computer sciences saw a growth in popularity, resulting in fewer students gravitating to the financial discipline. The “brain drain” phenomenon saw an exodus of top talent out of places like Northeast Ohio to more promising metros. All the while, Big 4 firms excelled in siphoning much of whatever talent was left, leaving slim pickings for firm headhunters. It was at that time that the “talent wars,” as Gaino describes it, really started to come to a head. The market for people seemed all but tapped. So what was a small firm to do? What happened next would be a pivotal moment in the firm’s future. Talent wars The fight for the best people has been, and continues to be, an ongoing challenge across the accounting field. But when the well for mid-level talent began to run dry, AGP looked internally, shifting priorities to accelerating the development of in-house professionals instead of trying to preen them from the market. The result was some rather innovative initiatives that have created the platform for auspicious growth. Headhunters couldn’t fill the gap. So the firm put retirements on hold. After all, clients wouldn’t be expected to stick around if they were handed off to an inexperienced late 20-something, Gaino said. Stan Apple, for example, a second generation chairman now in his mid-70s, is still with the company today. They reduced billable hour requirements for those younger professionals, though, and tapped several for their Growth Acceleration Program, an in-house initiative for developing more managerial and mid-level skills. Really, it marked a doubling down in practicing what they preach in terms of succession planning the firm counsels clients on. Now, those professionals are completing their programs and are readying to step into more responsibility, poised to take on the big clients senior partners like Apple will eventually have to leave behind. Gaino, who in May formally handed the chairman reins to Charles Mullen, pegged that maturation of talent in-house as a top priority before pursuing a leadership transition, which also marks a bit of a restructuring of top executives. The firm’s prior CEO, Harold Gaar, left the firm last fall in what Gaino described as a mutual and amicable decision. Rather than fill that specific role, AGP decided to return to prior management model comprising a chairman and COO. “Harold came on with a sales and marketing background, so we elevated him to CEO,” Gaino said. “Where we struggled with that was he wasn’t a CPA … that made things challenging, and we hit a few bumps.” Another initiative just begins with this year. Gaino said recruiting is beginning now for a program that pairs AGP with first- and second-year accounting students at the University of Akron to offer discounted accounting services to emerging businesses that wouldn’t otherwise be able to afford those. At first, Gaino said candidly, they didn’t think the program would be that meaningful for the firm itself. “The first time we had that invite, we said no,” Gaino said. “But then it hit me: If I could hire freshmen and sophomores in college for eight to 10 hours a week and have them do work at a highly discounted rate for these businesses, that’s going to help me win the talent wars.” “As a smaller firm, it’s hard to get access to some of these people,” he said, referencing the overall competition, particular with the largest firms, both in the market at large and on at colleges where CPA firms heavily recruit new people. “This will be a great way to distinguish ourselves on campus.” Platform for growth Business at AGP has ebbed and flowed through the decades. The firm, like most accounting outfits, saw setbacks to revenue growth in the wake of the recession. But business has come back as companies themselves are seeing their own balance sheet growth. With a renewed focus on talent development both near and longterm, though, AGP has set sights on nearly doubling in size by 2020, which means achieving $20 million in annual revenues and a staff of 160. The talent issues truly needed addressed before strategic growth plans made sense. At about $12 million in annual revenues right now, the firm is at an “awkward” size, Gaino said. There are economies of scale, particularly in back-office operations, that come at $20 million. Plus, gaining size is becoming more critical in an already competitive and crowded market here already shrinking through acquisitions, including several from companies located outside Ohio that want a piece of the action. An acquisition or two will be necessary to realize those goals for AGP. The firm’s last acquisition was in 2008 with Akron’s Brott, Mardis & Co. Any further mergers will be within the Northeast Ohio market, Mullen said, and have a niche specialty in areas like real estate, construction and advanced manufacturing that are not only a large focus for AGP but also the sectors targeted for the strongest growth. Times have certainly changed — or at least priorities have. “Twenty years ago, I was almost solely focused on figuring out ways to show a client that we care,” Gaino said. “We were ignoring the people, though. We’d grow some, lose people, then grow some, then lose people.” “From a staffing perspective, it’s taken us years and years to get it right,” Mullen said. “But now that we have these great things happening at AGP, why not expand it?” have been acquired by a platform company formed by The undersigned initiated the transactions and served as exclusive financial advisor to Ohio Pet Foods, Inc., Southern Tier Pet Nutrition, LLC and Blackwood Pet Foods, LLC. Contact Marc Leizman at 216-287-4228 or visit www.brookshoughton.com 20160620-NEWS--13-NAT-CCI-CL_-- 6/16/2016 4:25 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 13 Weston plan is belatedly picking up pace By STAN BULLARD sbullard@crain.com @CrainRltywriter Weston Inc., the realty developer that floated plans for a community of apartment buildings on a sea of parking lots near Cleveland’s Public Square, is continuing to buy portions of the block it did not already control. Cuyahoga County land records show Weston on May 20 paid local ownership group FAI Inc. $3.6 million for a parking lot at 405 St. Clair Ave. which is almost an acre in size. In another transaction, through 1400 W. Third St. LLC, which lists in state incorporation documents to the Warrensville Heights address of Weston’s corporate headquarters, Weston gained control of another parking lot at the northeast corner of Frankfort Avenue and West Third Street from the Elise Kirschenbaum Trust on March 8. That transfer does not show a purchase price. The nearly one-acre parcel is also operated as a parking lot. The two acquisitions square off the eastern end of the block needed for a 23-story complex proposed last When Weston first unveiled its plan last November, it said the vast field of parking lots just west of Public Square would become a new neighborhood. (Contributed photo) fall by Weston and Citymark Capital Development Co. of Cleveland. The structure would be the first in a master plan for development of the block, including parking lots that Weston has owned for a decade south of Frankfort. Weston spokeswoman Sue Broadbent said in an email last Tuesday, June 14, that it is “too premature” to discuss what the purchases mean for the project. When Weston last November unveiled the proposal for the block bounded by West Third and Sixth streets and West St. Clair and Superior avenues, Weston CEO T.J. Asher said the company expected soon to control parcels it did not own. That schedule has since unraveled. The plan called for the first building to consist of an eight-story brick structure at St. Clair and West Third connected to a larger glass-walled tower. It would incorporate 352 suites, parking for 390 cars and some service-oriented retail space. Weston said it sought to build first on the southeast corner of West Third and St. Clair in order to capitalize on its proximity to the established Warehouse District downtown neighbor- hood. Additional — and taller — towers would go on lots Weston owns south of Frankfort that abut Tower City Center near Public Square in the future. The Weston plan has not included the headquarters of Stark Enterprises at 1350 W. Third St. on the northeast corner of the block, which Stark has listed on the Ten-X.com website for a July 11 auction with a starting bid of $850,000. Stark bought the building in 2007 when the firm was participating with Weston in a joint development of the block that never came to fruition. The two parted ways in 2008. Through a separate partnership, Weston recently started converting most of the Standard Building, 1370 Ontario St., from offices to apartments. Construction crews are at work on the site. Crews have installed fenced walkways around the building to protect passersby as they clean the structure’s terra cotta surface. Broadbent did not respond to an email and phone call last Thursday, June 16, on the projected completion date for the Standard project. 3.95% OWN YOUR BUSINESS? OWN YOUR BUILDING. George V. Voinovich 3.95% fixed for 5 years Due in 5 years with up to 20 years amortization* Owner-occupied commercial real estate purchase or refinance Loan amount from $100,000 up to $1,000,000 per loan We pay your closing costs up to $2,000 on loans from $250,000 up to $1,000,000 and $1,000 on loans under $250,000 Learn more at talmerbank.com or call (800) 456-1500 | OFFER ENDS 9.1.2016 1936 – 2016 Public Servant. Partner. Friend. 20160620-NEWS--14-NAT-CCI-CL_-- PAGE 14 6/17/2016 12:41 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS THE DISH: Lee Chilcote Kombucha is local business’ recipe for expansion Bearded Buch, a 2-year-old craft food company that makes its own kombucha, has just renovated a new home at 4464 Broadview Road in Cleveland’s Old Brooklyn neighborhood. Kombucha is a fermented tea that’s considered rich in probiotics and antioxidants. It’s made by adding a culture of bacteria and yeast to a solution of tea, sugar and sometimes fruit juice and other flavorings. The drink, which has long been popular among alternative health advocates, recently has hit the mainstream with over $500 million in annual U.S. sales. Bearded Buch has grown rapidly since its launch in 2014 and now distributes bottles of kombucha to over 125 stores in Ohio. Yet it has outgrown its home base at Cleveland Culinary Launch and Kitchen in the Midtown neighborhood. The new location will allow it to ramp up production from 600 gallons to 1,5002,000 gallons a month. Jason Powers, director of marketing and development at Old Brooklyn Community Development Corporation, said Bearded Buch is part of a small crop of local food businesses that have chosen Old Brooklyn as their home. With the completion of a new $10 million streetscape on Pearl Road, as well as several major properties under rehabilitation, he said the area is ripe for redevelopment. “We have very good bones, but it’s a big struggle to get businesses to commit to being the first ones,” said Powers during a walking tour. “We’re basically stuck in this donut hole of great homes with incredible value, but we’re not a buzzy neighborhood. Yet we’re a half mile from downtown. Lee Chilcote is a freelance writer and editor who has written for Vanity Fair, Next City, Belt and other publications. He is cofounder of Literary Cleveland. “Here, there’s an opportunity to get in on the ground floor, like Ohio City and Tremont before gentrification,” he added. Unique area Aaron Powell discovered kombucha after going on a health kick and buying a bottle on a whim at a store. He soon fell in love with it and began experimenting with making it at home. Eventually, after selling it in small batches to family and friends, he co-founded Bearded Buch with his wife, Danielle. The name stems from the fact that Powell has a bushy beard and the nickname for kombucha is “buch.” Powell was drawn to Old Brooklyn because of its affordability and tightly knit community. “We’ve always really loved Old Brooklyn, especially the fact that it has its own downtown and is close to the zoo,” he said. “It was the uniqueness of the area, and also the building. I walked in the front door and knew instantly this is where we needed to be.” Bearded Buch is moving into a single-story, 4,500-square-foot building with an open, accessible floor plan, garage and rear loading area. The Aaron Powell, co-founder of Bearded Buch. (Lee Chilcote for Crain’s) building was vacant and dilapidated for years, but after nine months of renovation, it will soon emerge transformed. It boasts an attractive retail and office space in the front and a spacious production, bottling and warehousing area in the rear. Powell is in the process of purchasing the building from the current owner through a land contract. The city of Cleveland and the Economic and Community Development Institute (ECDI) have provid- ed low-interest financing. “Most banks want you to be in business two years before they’ll even have a conversation with you about lending,” said Powell. Getting your weird on He has become an evangelist of kombucha as a healthy alternative to soda and bottled juices. “Because it’s fermented with yeast and bacteria in culture, it has a symbiotic relationship and builds up acids and en- zymes and great things for your body,” he said. “I tell people it’s a little sour, a little sweet, and lightly carbonated. It doesn’t taste like anything else out there.” Kombucha is still unfamiliar to many people, while some have a negative perception of it and believe that it tastes like vinegar. Yet Bearded Buch takes advantage of its off-kilter reputation in its marketing by inviting customers to “get weird” with them. Powell believes the market for kombucha will continue to grow. “Kombucha right now is where craft beer was 15 years ago,” he said. “Back then, there were maybe 100 breweries, and now there are over 1,000.” Currently, Bearded Buch has four flavors: ginger snap, concord grape, spiced elderberry and pink grapefruit. As part of its expansion, the firm will add new flavors. Plans for the retail space in the front of the building are still in the early stages. Powell cited the support of the local food community in Cleveland as one reason for the company’s rapid growth. The company is one of several success stories, including Cleveland Kraut, Six Shooter Coffee and Pope’s Kitchen, that got their start at Cleveland Culinary Launch and Kitchen. He also hopes to offer his product on tap at more places this year. Currently, Bearded Buch is available at Phoenix Coffee in Ohio City, Six Shooter Coffee on Waterloo and Scribbles Coffee in Kent. Powell is glad to be done renovating the building and looks forward to growing his company at its new home in Old Brooklyn. “The food community in Cleveland is amazing and very welcoming,” he said. SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt Call For Pricing!! Minimum Delivery:1Pallet 1-800-547-1538 Salt Distributors Since 1966 20160620-NEWS--15-NAT-CCI-CL_-- 6/16/2016 3:47 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 15 Focus PREP AND PAROCHIAL SCHOOLS Q&A - P. 17 | HATHAWAY BROWN - P. 18 | FAIR TRADE - P. 20 Maybe they’ll put a spell on your kid Schools would like to charm prospects earlier than ever By TIMOTHY MAGAW tmagaw@crain.com @timmagaw P otion making, transfiguration, and wandmaking aren’t typically part of Magnificat High School’s curriculum. After all, the school prides itself on the holistic development of its students as they prepare for the real world — and let’s face it, the proper way to make a potion with eye of newt isn’t an in-demand skill in today’s economy. But for a few days this summer, the all-girls Catholic prep school in Rocky River will transform itself into Magnificat’s School of Witchcraft for local muggles in grades four through six. The Harry Potter-based enrichment camp, which has a waiting list, is just one of several new summer camp offerings at Magnificat designed to get more young people on its campus — all in hopes that they too one day will want to enroll at the school. Magnificat has developed programming for students as young as first grade. Others include coding, cooking, printmaking and even an enrichment camp focused on Gregorian chants. Science, technology, engineering and math programming is also a major focus. “We wanted to make sure students had access so to our programming, faculty and staff and students at an early age,” said Jenifer Hebda Halliday, Magificat’s president. “If they can be on campus, get a feel for who we are, get a feel what we’re about, they’ll want to be future Blue Streaks.” SEE CHARM, PAGE 16 Crain’s Cleveland Business photo illustration by David Kordalski 20160620-NEWS--16-NAT-CCI-CL_-- PAGE 16 6/16/2016 3:49 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS PREP AND PAROCHIAL SCHOOLS CHARM CONTINUED FROM PAGE 15 Magnificat recently redesigned its summer camps. (Contributed photo) The idea behind these camps that are springing up at private high schools around the country is to just make that connection early — between the young students and the schools’ campuses. And as the competition between private schools increases, the earlier they can get students thinking about where they’d like to spend the four years before college, the better. “Many of these schools have expansive campuses, but the community isn’t always terribly familiar with CONGRATULATIONS CLASS OF 2016 them. We find that many times when people come to campus they are suddenly kind of surprised by what they see and what some offer,” said Myra McGovern, vice president of media for the Washington, D.C.based National Association of Independent Schools. She added, “The internet makes it easier to find what’s out there, but it makes it a more complex decision. Schools are recognizing that by establishing relationships much earlier they can really communicate much more effectively about what they offer.” Meanwhile, Holy Name High School in Parma Heights partnered with Classroom Antics, a company in North Royalton that provides tech-based summer camps in various settings. The camps, geared at students between 7-13 years old, include video game design, Lego robotics, computer programming and stop-motion animation. “In third or fourth grade, they’re just having fun,” said Ed McIntire, Holy Name’s director of admissions. “That’s what we want to promote to them: Come have fun. If you’re doing stop motion animation or Lego robotics, that starts a conversation about how you had a great time at Holy Name. That plants the seed.” Nationally, private school enrollment in grades nine through 12 increased from about 1.2 million in 19951996 to a peak of 1.4 million in 2007-08, according to the National Center for Education Statistics. Since the recession, enrollment has fluctuated mildly but over the next decade or so is expected to decrease by 13%, from 1.3 million to 1.1 million students. The value of a visit Learn more at For boys, grades K-12. www.us.edu LEARN how we can help build your career, take it to the next level or build your business. The reasons for the decline, experts say, are many. Demographic trends simply mean fewer students are ready to fill the desks and rising tuition has pushed some families toward public and charter education. More specifically, the closure of Catholic K-8 schools across the country has dried up what has traditionally been a primary recruitment pool. Those challenges have led to sophisticated marketing campaigns — not just in print and on TV, but online, particularly through various social media channels. However, in many cases, the best marketing a school can do is nurturing its relationship in the community, school officials say. “Our philosophy from an admissions standpoint is that we want to build the strongest community pos- “If you’re doing stop motion animation or Lego robotics, that starts a conversation about how you had a great time at Holy Name. That plants the seed.” — Ed McIntire, Holy Name director of admissions sible,” said KC McKenna, vice president of marketing and admission at St. Edward High School in Lakewood. “That’s what students and parents are looking for in a high school experience.” St. Ed’s, for one, offers an array of summer programming for young people. It offers enrichment camps for seventh and eighth graders that explore subjects such as robotics, game design, math and creative writing. The school also has a robust selection of athletic camps. As for the younger prospects, the school maintains a Future Eagles club — a free program where boys in 6th grade and younger can get free Eagles swag as well as free admission to St. Ed’s home athletic events. “That’s as much of an alumni program as anything,” McKenna said. “It’s a great way for younger alums to reengage with their kids back in the community.” On the other hand, Saint Ignatius High School in Cleveland’s Ohio City neighborhood doesn’t focus too young with its recruitment efforts. It primarily focuses its efforts on grades six through eight through programs with “substance,” according to Pat O’Rourke, the school’s director of admissions. Saint Ignatius, however, does boast its REACHing Magis (Latin for “more”) program, which is designed to reach out to students — mostly minorities — in the city of Cleveland as young as fifth grade who have traditionally been underrepresented at the school. Still, in all of its efforts, O’Rourke stressed that getting younger students — and their families — on campus is a valuable recruitment tool. “When they get down here and see the campus, they love it,” he said. “That’s the big goal. Sometimes people, believe it or not, are afraid of Ohio City. But once they get down here, it’s a pretty easy sell.” Send us your nominees for Crain’s ‘Who to Watch in Law’ section - FEATURING Undergraduate courses, degrees Graduate courses, degrees Specialized MBA programs, including the #1 ranked Online MBA program in Ohio by U.S. News & World Report Executive and continuing education Entrepreneurship, consulting and business counseling programs Connected, engaged and invested in the Cleveland business community 216-687-3786 www.csuohio.edu/business Crain’s third “Who to Watch” section of 2016 — “Who to Watch in Law” — is scheduled for publication on Sept. 26. It will highlight up-and-comers and innovators in Northeast Ohio’s legal sector, and we’re looking for suggestions. We’re profiling individuals who are, of course, excellent legal practitioners but also have a passion for their work, their clients and the Northeast Ohio community. These individuals could be from a big firm, a small firm, a local company or even nonprofit. There are no hard and fast requirements for this section, other than that the candidate needs to exhibit the kind of potential that makes him or her someone to watch in the legal sector. We’re looking for those individuals who might fly under the radar now but could disrupt their field — for the better — in the future. If you think you know who will be among those leading Northeast Ohio’s legal space in the future, drop an email to sections editor Timothy Magaw, tmagaw@crain.com. Please include “Who to Watch in Law” in the subject line. Send your suggestions no later than noon on Monday, Aug. 1. Please include the person’s name, position and a paragraph explaining why he or she stands out. Crain’s “Who to Watch in Finance” section will appear in the June 27 issue. 20160620-NEWS--17-NAT-CCI-CL_-- 6/16/2016 2:28 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 17 Q & A: Richard Clark President, Saint Martin de Porres Richard Clark, a former principal of St. Ignatius High School, admittedly took a chance when he became the first employee of Saint Martin de Porres High School in Cleveland’s St. Clair-Superior neighborhood. The results, however, have been nothing short of extraordinary. Now, the school, which opened in 2003, is in the midst of raising significant dollars for a new, $26 million facility designed to take the school to the next level. The new building recently got a $250,000 boost from Sherwin-Williams Co. and the Connor Foundation. Crain’s recently chatted with Clark about Saint Martin’s 65,000-square-foot facility taking shape just east of the intersection of Norwood and St. Clair and what makes the school — and its students — so special. — Timothy Magaw Tell me about the school’s mission. We’re part of the Cristo Rey Network of schools, and the mission is to provide a quality college prep education to urban kids with low economic resources. What’s unique — the secret sauce — is our work-study program that touches every student from the first day until they graduate. They work five days a month — full days — at various jobs in and out of the city. They begin to build a network with people at those organizations. They work at places like the Cleveland Clinic, Sherwin-Williams, Jones Day or Baker Hostetler. Why has the corporate community responded so well? Cleveland is more philanthropic and has a better sense of civic responsibility than most places in the United States. Secondly, businesses in Cleveland are looking for ways to diversify the workforce, bringing in kids who wouldn’t necessarily have had an opportunity. This is a way to build a pipeline down the road, and that’s beginning to happen since we graduated our first class. We feel this kind of program connects very talented young people with companies who are looking for Clevelanders to work there. Did you expect this experimental school to be such a success? Well, I dreamt about it. It’s been a long journey. I didn’t have this kind of success in my mind when we started, but it’s been mind blowing to be honest. When we started, it was out of a grade school building built in 1912, but people trusted their most precious gifts — their children — with us. Fortunately, it’s paid off. What else makes it work? Certainly the curriculum and the way we teach. When I was in school, we all sat in rooms with 40 kids in a line and the teacher “When we started, it was out of a grade school building built in 1912, but people trusted their most precious gifts — their children — with us. Fortunately, it’s paid off.” — Richard Clark, President, Saint Martin de Porres turned on the firehose and we took notes. We based this school on a project-based centered way of learning. It’s much more engaging. Whole classes do projects together. That’s one of the reasons we’re building a building. The buildings in 1912 were built for that type of factorystyle education. What’s special about the new facility? It’s designed around the way we want to teach. This is not your father’s school building. It allows for collaboration between small groups, larger groups and even whole grades working together. It’s going to be a collaborative space more like at Google or even Hyland Software. A lot of school buildings in urban areas look like fortresses. Ours is right on the street, and when you walk by, you will see kids learning. We’re going to be able to reach out to people, but they’ll also be able to reach in. That’s sort of our education model — not like the ivory tower model. The city is our classroom. Let’s be a part of it. What’s been the biggest challenge? One of the biggest challenges was finding jobs for the students, getting them to pay the kids to go to work. It’s a hard thing to believe in, and you can’t believe the value these young people bring. Once the company gets in, they tend to maintain it the best they can. Once it works and they see it as a pipeline and as a way of healing the city a little bit, they realize this is the best investment they can make. Also, can it be a challenge to sell the school to families? When parents hear about the school, they say they can’t afford it, but we aren’t a traditional tuition driven school. We have to communicate this. Every family pays something — the average tuition is $300 a year — but we aren’t barring students because of money. The ‘something’ is what you can afford. That’s an unusual message. BEAUMONT WOMEN EXCEL! Academic Excellence is the essence of a Beaumont education. This is represented by 86% of the class of 2016 who have earned scholarships in excess of $11.8 million, with 100% of the senior class enrolling in a college or university. Congratulations to our graduates! COLLEGES AND UNIVERSITIES ACCEPTING THE CLASS OF 2016 Ashland University Baldwin Wallace University Boston University Bowling Green State University Butler University Capital University Case Western Reserve University Catholic University of America Cleveland Institute of Art Cleveland State University College of Charleston College of the Holy Cross College of Wooster Columbia College Chicago Cornell University Cuyahoga Community College Denison University DePaul University Duquesne University Eastern Michigan University Elon University Fairfield University Florida Gulf Coast University Fordham University Franciscan University of Steubenville Gannon University Georgetown University George Washington University Hillsdale College Hiram College Howard University Ithaca College John Carroll University Johnson & Wales University Kent State University Lake Erie College Lakeland Community College Lourdes University Loyola University Chicago Loyola University Maryland Maine Maritime Academy Manhattan College Marietta College Marquette University Mercyhurst University Miami University Michigan State University Mount St. Joseph University Northwestern University Notre Dame College of Ohio Ohio Dominican University Ohio Northern University Ohio University Ohio Wesleyan University Otterbein University Pennsylvania State University Point Loma Nazarene University Point Park University Providence College Purdue University Rochester Institute of Technology Saint Joseph’s University Saint Louis University Saint Mary’s College Saint Mary-of-the-Woods College Shawnee State University Spelman College St. Edward’s University SUNY Maritime College Syracuse University The Ohio State University The Ohio State University, Mansfield Tusculum College University of Akron University of California, Irvine University of Chicago University of Cincinnati University of Connecticut University of Dayton University of Denver University of Findlay University of Indianapolis University of Kentucky University of Maryland University of Michigan University of Mount Union University of Notre Dame University of Pittsburgh University of Pittsburgh at Greensburg University of Toledo University of Vermont University of Washington Ursuline College Villanova University Wake Forest University Walsh University Washington and Jefferson College Washington University in St. Louis West Virginia University Wittenberg University Wright State University Xavier University 3301 North Park Blvd., Cleveland Heights, OH 44118 | 216.321.2954 | BeaumontSchool.org A Catholic school in the Ursuline tradition, educating women for life, leadership and service. 20160620-NEWS--18-NAT-CCI-CL_-- PAGE 18 6/16/2016 2:57 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS Empowering Young Women PREP AND PAROCHIAL SCHOOLS Hathaway Brown By MICHELLE PARK LAZETTE clbfreelancer@crain.com Over 70% of the Class of 2016 was offered over $17.1 million in college scholarships. Our graduates are attending colleges, including: Boston College Case Western Reserve University Georgetown University Northwestern University The Ohio State University Syracuse University University of Notre Dame University of Pennsylvania University of Southern California Vanderbilt University A girls’ Catholic college-preparatory high school 20770 Hilliard Blvd. | Rocky River, Ohio 44116 | 440.331.1572 www.magnificaths.org 35th Anniversary PROMOTE. 35th Anniversary CLEVELAND BUSINESS VOL. 36, NO. 47 NOVEMBER 23 - NOVEMBER 29, 2015 ALLYSON O’KEEFE, 37 Partner; Porter Wright 35th Anniversary CLEVELAND BUSINESS VOL. 36, NO. 47 NOVEMBER 23 - NOVEMBER 29, 2015 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON partner. O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,” said O’Keefe, a Partner; Porter Columbus native who lived downtown forWright 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t for granted.” VOL. 36, NO. take 47 it Allyson NOVEMBER 23 - NOVEMBER 29, 2015 O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estateALLYSON partner. O’KEEFE, Just seeing what Cleveland has gone through in the time that I’ve 37 been here, there’s obvious“Young professionals who live downtown are so excited about the city,” said O’Keefe, a ly a lot of excitement around real estatePartner; development. I started in 2004 when we were crazy Porter Columbus native who lived downtown for Wright 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.” Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship as a Case Western Reserve University law student. Since then, she has MANY OF THE PROJECTS YOU WORKED ON there ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The THAT AN AREA OF EXPERTISE? Metropolitan at the 9, Uptown in every University and Steelyard Commons, and has been proYes, definitely. Real estate is extremely interesting because deal Circle is differWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate ent. You can never get bored because there’s so partner. much variety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious“Young who live downtown so excited about the city,” said O’Keefe, a credits to historic renovations, from professionals ground-up development to rehab, are from ly a lot of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you LEADERSHIP don’t take it for granted.” HOW WOULD YOU DESCRIBE YOUR STYLE? CLEVELAND BUSINESS Why not? Let the Custom Reprint Department help you leverage this great press. For more information contact Krista Bora, Reprint Account Executive kbora@crain.com • tel 212.210.0750 O’KeefeI expect is not working or spending timeI work, with her husband and two children, she can I definitely believe in leadingWhen by example. the people with whom MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the very boards of nonprofit and watching college football. my associates, to work hard, and they see me working hard. For me, it’sorganizations all THAT AN AREA OF EXPERTISE? about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get bored because there’s so much variety there, from tax Just WHAT seeingWAS whatITCleveland has gone the time that I’ve been here, there’s obviousWHAT OTHERS ARE SAYING: LIKE TO WORK WITHthrough O’KEEFEinON credits to historic renovations, from ground-up development to rehab, from ly a lot of excitement around real estate development. I started in 2004 when we were crazy THE FLATS EAST BANK PROJECT? mixed-use to residential. busy with development. of the boom from ’04 through ’08. I saw it go through “Allyson is extremely bright and quick witted, butThat whatwas trulysort distinguishes her the downturn, then I saw itpeople rise again, even from most successful attorneys is her exceptional skills. Shestronger has an than before locally. HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, OF THE PROJECTS YOU WORKED concert with her to achieve win/win MANY solutions to difficult problems,” said ON ARE MIXED-USE UR my associates, to work hard, and they see me working very hard. For me, it’s all THAT AN AREA EXPERTISE?of the Scott Wolstein, CEO of Starwood Retail Partners andOF co-developer about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differFlats East Bank project. ent. You can never get bored because there’s so much variety there, from tax — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECT? mixed-use to residential. “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys is reserved. her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rights HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 I definitely believe in leading by example. I expect the people with whom I work, concert with her to achieve win/win solutions to difficult problems,” said my associates, to work hard, and they see me working very hard. For me, it’s all Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work. Flats East Bank project. — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK W THE FLATS EAST BANK PROJECT? “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rightsisreserved. ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project. Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved. Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040 National firm expertise... local attention. Hands down, our education professionals are among the best in the business. But that doesn’t quite cut it. The way we see it, it’s not enough that we’re top-notch experts in accounting – we need to be experts in what you do too. That’s why we make it our business to know your business, inside and out. Maloney + Novotny has extensive experience working with private schools providing audit, accounting, tax and consulting services. Business Advisors and Certified Public Accountants Cleveland | 216.363.0100 Canton | 330.966.9400 Elyria | 440.323.3200 maloneynovotny.com It’s crazy to think it, Izzy Catanzaro begins, but she opened and ran her own coffeehouse as a high school student at Hathaway Brown. To get it going, her team and she met with fire, health and building department officials. After the café opened, the coffee machine broke down, so Catanzaro ordered service. She handled billing, staffing challenges and more. “Someone will never understand that (business) until they have to do it,” said Catanzaro, who served as the café’s CEO before graduating earlier this month. “Experience is everything. It’s all trial and error, so the more you do it, the less error, I hope.” Hands-on lessons are precisely the point of the student-run coffee shop Hathaway Brown built and opened in late January inside the school. The Hath Caff, which sells products of local vendors including The Stone Oven, Cleveland Coffee Company and Bialy’s Bagels, is one of a few investments completed recently at the Shaker Heights school. At a cost of roughly $800,000, Hathaway Brown added the Hath Caff, transformed the school’s library to a more open space called the Learning Commons, and established a so-called IDEA lab. The Hath Caff is equipped with the staples of a typical coffee shop: a coffee maker; a smoothie maker; a display case for bagels, muffins, and the like; a coffee grinder, a dishwasher and more. “It’s just like a little Starbucks,” said Kevin Purpura, director of the Center for Business and Finance of Hathaway Brown. “(The students) determine wages that are going to be paid, they choose a head barista, they keep the books on Excel.” Purpura is unaware of another school in Northeast Ohio that has a business not just staffed but run by its students. “There’s a lot of risk involved in that because they are young kids, but I think that makes it very unique,” he said. “(The rewards) are infinite. It’s an invaluable way to teach students about actual business.” The students running the Hath Caff answer to a five-person advisory board, with whom they meet once a week. Students as of the end of the school year were vetting expansions to the business such as selling to the middle school and catering meetings on campus. Catanzaro applied for and underwent two rounds of interviews to lead its operations. “Something like this happens once in a lifetime for a school like Hathaway Brown and I wanted to make sure it was done well,” she said of the café’s opening. “It’ll be cool to be able to say that I was part of the team that started it.” The Learning Commons and IDEA lab opened before the Hath Caff in fall 2015. Shorter bookshelves replaced 6foot-tall stacks in what used to be a traditional-looking library, making it so one can see from one end of the Learning Commons to the other. Three “idea bays” are painted with “They’re not just learning the math and science and English. The more important thing is can you combine them to do something creative with your life?” — Sue Sadler, senior associate head and director of Hathaway Brown Upper School 20160620-NEWS--19-NAT-CCI-CL_-- 6/16/2016 4:41 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 19 stresses hands-on learning in new spaces IdeaPaint, making the walls a place where students can write and solve problems. Campfire furniture allows students to stage collaborative space however they like. The IDEA lab, located in Hathaway Brown’s former woodshop, is organized into stations equipped for 3-D printing, molding and casting, vinyl cutting and more. Students used the lab to create the signage for the Hath Caff. Sue Sadler, senior associate head and director of Hathaway Brown Upper School, said she already sees evidence that the investments are making a difference. “I think it’s brought a level of joy and relevance to learning that we didn’t see 10 or 15 years ago,” she said. Getting in experiences such as these (navigating health department matters, paying employees, and more) helps to equip Hathaway students for real-world work, Sadler said. “The next generation is predicted to have seven different careers,” Sadler said. “Not just seven jobs — seven different careers. More and The Hath Caff is like a typical coffee shop. (Shannon Ahlstrand photo) more people are working from their homes, having to piece together jobs. Technology is replacing jobs. People who think outside of the box are going to have an advantage when they go out into the workforce. “I think we’re looking at a future where kids are going to have to be entrepreneurial, and I think these are spaces where they can think like that,” she added. “They’re not just learning the math and science and English. The more important thing is can you combine them to do something creative with your life?” Early childhood students explore the new IDEA lab. (Keith Berr photos) Forever green and white. No matter what colors come next. est . 1896 Congratulations to the Laurel School Class of 2016. Leah Ridgeway Jackson shares a rocket made on a 3-D printer. American University • Barnard College • Bucknell University • Butler University • Carnegie Mellon University • Colorado College • Cornell University • Denison University • DePaul University • Duke University • Elon University • Emory University • Fordham University (3) • George Washington University • Goucher College • Indiana University • Ithaca College (2) • John Carroll University • Kenyon College • Lafayette College • Miami University (3) • Michigan State University • Middlebury College • Northeastern University • Northwestern University • Notre Dame College • Ohio Wesleyan University (2) • Purdue University • Saint Louis University • Seattle University • Skidmore College • Syracuse University • The Ohio State University (5) • Tulane University • U.S. Military Academy, West Point • Union College • University of Chicago • University of Cincinnati (2) • University of Delaware • University of Michigan (3) • University of Notre Dame • University of Pennsylvania • University of Pennsylvania, Wharton School of Business • University of Pittsburgh (2) • University of Puget Sound • University of Richmond • Ursuline College • Vanderbilt University • Vassar College • Washington University in St. Louis • Yale University • LYMAN CAMPUS One Lyman Circle, Shaker Heights BUTLER CAMPUS 7420 Fairmount Road, Russell Twp. Girls Kindergarten-Grade 12 and Coed Pre-Primary 216.464.0946 LaurelSchool.org College choices as of May 5, 2016. The café is run entirely by students. (Shannon Ahlstrand photo) /LaurelSchool @LaurelSchool Dream. Dare. Do. 20160620-NEWS--20-NAT-CCI-CL_-- PAGE 20 6/16/2016 3:07 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS PREP AND PAROCHIAL SCHOOLS Schools embrace South Suburban Montessori School Providing authentic Montessori education for Children 18 months – 14 years of age OUR SCHOOL IS A PLACE WHERE: • students can accelerate their learning while working at their own pace • academic achievement and critical thinking skills are the cornerstones of preparing students for life • our teachers are nurturing, caring and create a home-like, safe learning environment • we value the teaching of independence as it produces emotionally intelligent students who lead, not follow • the values of respect, honesty, fairness and acceptance permeate every classroom Our students look forward to sharing our school with you! CALL TODAY FOR A TOUR: 440-526-1966 Scholarships Available • Indexed Tuition Program Available Located just south of Rt. 82 and I-77 in Brecksville’s beautiful Blossom Hill Complex 4450 Oakes Rd, Building 6 • Brecksville, OH 44141 440-526-1966 • admissions@ssmsmontessori.net www.ssmsmontessori.net AT HOME. IN THE OFFICE. AT THE GYM. ON THE GO. STAY CONNECTED. Congratulations to the Cleveland Central Catholic Class of 2016 100% graduation rate – 3 years running! SHU K *L U [ Y H S * H *S ]L [O V SPJ L 89% plan to attend a college or university /PN O: JOVV S Cleveland Central Catholic High School 6550 Baxter Avenue | Cleveland, OH 44105 www.centralcatholichs.org Facebook.com/CrainsCleveland Twitter.com/CrainsCleveland Instagram.com/CrainsCleveland By MICHELLE PARK LAZETTE clbfreelancer@crain.com Dozens of Northeast Ohio students walked the halls of school this year in skirts woven in a developing country and sold by an entrepreneur with a mission. Founded by Northeast Ohio native Hilary Dell, One Seed Heritage delivered its first fair trade school uniform in August 2015. It’s since been added as an option for students enrolling in numerous local schools. The seed for the business was planted when Dell, company president and a graduate of Gilmour Academy in Gates Mills, witnessed the poverty in Uganda during a three-month trip during college. A dual major at Kent State University studying fashion design and finance, Dell ended up briefly overseeing a fair trade operation employing roughly 20 women. (Fair trade means a company is paying employees a fair wage.) “This woman had started this tiny little business that gave them (the Ugandan women) a little bit of work, but that little bit of work allowed them to build homes and to send their children to school,” Dell said. “I decided at that point that if I did continue in design, I wanted to work for a company that had some sort of mission.” She later traveled to Guatemala, whose textiles she grew to love. Dell learned to weave there, and found herself reminded of the school uniforms she used to wear. “I thought there’s got to be a better way where we can provide sustainable work to these artisans that isn’t based on fashion trends,” Dell said. “We can sell things because One Seed’s Hilary Dell (right) at the market. (Contributed photo) they are beautiful, [but] people aren’t going to buy just because they are fair trade. That’s not a deciding factor for the average customer. You end up competing with every other apparel company, so it’s really hard. “A school uniform is anti-fashion,” she added. “How great would it be if I could use the uniform to connect students to the artisans? So that’s how the uniform came about.” One Seed Heritage skirts are woven by cooperatives of Guatemalan women, and the company’s shirts are produced by a fair trade factory in India. One Seed Heritage now is selling to eight schools, one of which (Saint Ursula Academy in Cincinnati) placed a 500-skirt order to outfit all of its students in fair trade threads. Locally, Magnificat High School students have purchased roughly 100 skirts, and students at Beaumont School, Our Lady of the Elms schools, Gilmour Academy schools, and Saint Joseph Academy also are customers. Magnificat is a fair trade-certified school and had sought fair trade uniforms before without success, said 20160620-NEWS--21-NAT-CCI-CL_-- 6/16/2016 4:43 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 21 e One Seed Heritage’s fair trade mission The fair trade club at Gilmour Academy models One Seed Heritage’s uniforms. (Contributed photo) Kathleen Sardon, campus minister of the Rocky River school. Their One Seed Heritage skirts — navy blue with white stripes — are “really, really cute,” but there’s an added deliverable that makes the uniforms even more unique, Sardon said. Students in Spanish class participated in several Skype sessions with the women in Guatemala who weave the skirts, learning about the cre- ation of the textiles, Sardon explained. “They’re getting practical practice with their Spanish, learning about the culture, learning what the challenges are for women who want to be entrepreneurs in Guatemala,” she said. “It’s just such a great connection with what we wear.” Those Skype sessions are intended to create a connection, Dell said. “(It’s about) realizing there are people making this stuff, and they should have all the same benefits that we do,” she said. “It’s not like they deserve less because of where they were born, or that it’s OK that they have less. We should do our part to make the world a better place.” Both Sardon and Coreen Schaefer, dean of students at Beaumont School in Cleveland Heights, said the fair trade mission of One Seed Heritage aligns with their schools’ missions and that Dell’s having a background like those of their students is powerful. “She is a strong role model for our young women, as a fellow Clevelander, because they can see themselves in Hilary,” Schaefer wrote in an email. “Hilary believes very strongly in educating young people about why they should choose fair trade, so that it is more of a statement of belief than a simple choice of skirt,” Schaefer continued. “And our students really get it; they believe in the education of women throughout the world, not only of themselves. They want to see women lead whenever they can.” One Seed Heritage’s skirts are woven by cooperatives of Guatemalan women, while its shirts are produced by a fair trade factory in India. (Contributed photos) Congratulations to the HB Class of 2016, all of whom are now off to make their marks at some of the finest colleges and universities in the world. Don’t fall victim to a cyberattack. A properly backed up and recoverable system protects you from the high costs and stress of a cyber attack. On average, it costs $154 per record WR UHFRYHU \RXU ´OHV IURP D V\VWHP breach, potentially causing your business thousands of dollars in unplanned expenses. Roughly 23% of people open phishing attachments and 10% of people click on pop-up viral messages, making your business vulnerable to ransomware, hacks and downtime. Partner with Ashton Technology Solutions today to ensure your business is protected with their data backup and disaster recovery services. With data being backed up every hour, your important business ´OHV ZLOO EH SURWHFWHG DQG UHFRYHUHG TXLFNO\ OHWWLQJ \RX JHW EDFNWRSUR´WDELOLW\ Call Ashton at 216.397.4080 or visit ashtonsolutions.com for more information. Students from 83 Northeast Ohio communities — from Aurora to Westlake and everywhere in between — choose Hathaway Brown. And there’s no limit to where they go from here. HB’s signature Institute for 21st Century Education gives girls the education and experiences they need to embrace all of the opportunities that exist for them beyond our campus. Whether she chooses a college right here in Ohio or one that’s halfway across the globe, each HB girl is set on the path to find the school that’s right for her. Mark your calendar! Grades 5–12 OPEN HOUSE Thursday, October 27th, 5-7 p.m. 20160620-NEWS--22-NAT-CCI-CL_-- PAGE 22 6/17/2016 3:54 PM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS Cummins Tom Fox, SIOR tel 330 535 2661 www.naicummins.com INDUSTRY CONTINUED FROM PAGE 1 Commercial Real Estate Services, Worldwide. Industrial Building w/ Cranes & Heavy Power for Lease Students at Nela Park work with GE employees on a capstone project each quarter, which gives them the chance to see all aspects of the business from packaging to marketing to engineering, said Amanda Smith, community relations coordinator at Current, powered by GE. And the company works to stay connected with students beyond 10th grade, offering internships, co-ops and scholarships. Risks involved? 1460 Industrial Parkway, Akron, Ohio 44223 %NQØKD@RDØØRPØESØVHSGØ ØRPØESØNEØNEÚBDØ@QD@ ØSNMØNUDQGD@CØBQ@MDR Heavy power ØBKD@QØBDHKHMFØGDHFGS 3VNØSQTBJRØCNBJRØ.MDØCQHUDHMØCNNQ What’s your Broker’s 3-Year plan for your health insurance program? LEARN MORE J www.armadarisk.us/3yearPlan? or contact Ed Purcell, 216 350 5052 We Protect. You Grow. CLEVELAND TAMPA Everyone Deserves to Be Heard and Hearing & Speech Center e premier provider of speech, ŐĞ ƌĞĂĚŝŶŐ ĂŶĚ ǁƌŝƟŶŐ ƐĞƌǀŝĐĞƐ KƵƌƉƌŽĨĞƐƐŝŽŶĂůĐůŝŶŝĐĂůƐƚĂīĐĂŶ help your child address issues with: cial skills with peers or adults ƉƌĞƐƐŝǀĞ ĐŽŵŵƵŶŝĐĂƟŽŶ oducing speech sounds &ŽůůŽǁŝŶŐ ĚŝƌĞĐƟŽŶƐ z ZĞĂĚŝŶŐ ĂŶĚ ǁƌŝƟŶŐ z&ůƵĞŶĐLJ;ƐƚƵƩĞƌŝŶŐ z Vocabulary z Comprehension The trend of industry involvement in education is growing, said Jason Drake, director of education and workforce development for Dan T. Moore Co. The group of manufacturing companies is part of an effort to teach mechanical skills in the district, starting at Ginn Academy. Drake pointed to training programs at companies like Euclidbased Lincoln Electric Co., extracurricular activities like the robotics competition run by the Alliance for Working Together in Mentor, and the district’s own Academies of Cleveland initiative, which aims to overhaul and update its career-technical schools. Trends like the maker movement have put these skills back on the public radar, he said, after vocational pathways were stigmatized during the era of college-for-all. Blake Kohn, executive director at D.C.-based National Network of Schools in Partnership, said momentum has started to pick up within the past two years when it comes to partnerships between schools and businesses. There’s a recognition that communities are stronger when all the pieces work together. “I feel like the moment is now,” she said. The network started almost four years ago to focus on partnerships between schools, but soon expanded to collaborations between schools and businesses, community organizations and nonprofits. There can be reason to pause when entering into an industry-school partnership, though. Faith Boninger, a research associate with Colorado-based National Education Policy Center, questions whether having businesses deeply involved in schools is a good practice. Businesses have to act in their own best interest, so if programs are no longer beneficial to a company, it could leave a school without support it had come to rely on, she said. The programs also essentially serve as marketing for the companies, which some could say is inappropriate. If a school decides to bring in a business as a partner, Boninger said it’s important that it’s a decision made with all stakeholders. A formal contract that helps define the relationship is a plus. And she cautioned against letting businesses weigh in on the curriculum, though she said there is more of a role for companies in a vocational setting. Giving businesses a voice in creating curriculum can lead to bias and a less democratic process, she said. Regardless, Kohn said the majority of schools are now thinking about these types of partnerships. But so far, she said, most aren’t actually doing it or doing it well. If she’s right, Cleveland might be ahead of the curve. Teaching tech For an appointment call 216-325-7570 South Euclid z University Circle z Broadview Heights Chelsey Cook, principal at the John Marshall School of Information Technology, came to Cleveland from Texas as an aspiring principal under Second-year apprentice Zane Nesta shows how to form a seam to Max Hayes students Coby Martinez and Devin Long. (CMSD Communications) the Cleveland Plan. The urban district she used to work at had similar demographics, she said, but Cleveland is more open and collaborative. It has a start-up, grassroots feel to it. “We’re all trying to create something that doesn’t exist,” she said. Cook wants John Marshall IT to serve as a model for computer science education across Northeast Ohio — or any needed workforce development pipeline in the region. It’s great to have volunteers come in once a year or to have an advisory board to serve a school, she said, but John Marshall’s partnerships with universities and local tech-related companies have allowed it to create a sustained conversation with the entire “computer science ecosystem.” The more exposure to a job they have, the less intimidated they’ll be. Just sending industry representatives into schools isn’t effective. “It can be hard to make it really meaningful, and it takes time to do that,” Cook said. The IT school is one of three on the John Marshall campus focused on a specific area of study (the others being engineering and civic and business leadership). John Marshall’s new areas of study started with ninth and 10th grades this past school year. Every student had a computer science course, Cook said, and the school worked with NASA and Hyland Software to provide enrichment programs for students after school. Hyland continues to hire, said Caitlin Nowlin, technical outreach program manager for the company, but there’s not a large supply of employees from which to draw. It’s on the industry to get the word out earlier. And if schools keep adding computer science programs, Nowlin said industry will have an “obligation” to get in the classroom. Hands-on approach Dan T. Moore Co. is working with Ginn Academy to launch the “Mechanical Mindset Workroom,” a program designed to help students get training in areas like welding and soldering. The program is still seeking funding through its associated nonprofit, but plans to start at Ginn Academy this summer and eventually expand district or statewide. The program is a return to the hands-on programs like wood or metal shop that have been defunded in recent years, Drake said. The difference is that these modern programs are being driven by industry, while taking place in the schools. Another big component of the Mechanical Mindset program will be internship opportunities. “We’re looking for this program to be a pathway multiplier, to give kids options for how they pursue careers in the local economy,” he said. “We want to see kids graduating with more than just high school diplomas. We want them to be graduating with industry-recognized certifications and practical skill sets.” Max S. Hayes High School has long focused on training students for manufacturing jobs, but it, too, has taken steps to make those lessons more relevant to students. Last year, the school introduced the Technical Corps Program, an offshoot of the Cleveland Foundation’s Encore program that brought retired industry professionals into classrooms to work with students. For the pilot, the school had three retired manufacturing experts — an ironworker, a manufacturing designer and a project manager — who, for a small stipend, worked with teachers 10 hours a week to lead projects. The pilot started small, but Brianna Schultz, Wire-Net’s director of youth programs, hopes to eventually see it grow to a corps member in every trade classroom. Manufacturers, in particular, are worried about who will follow in the footsteps of their retiring employees, Schultz said. John Nesta, construction curriculum specialist at Max Hayes, said students may be more likely to listen to professionals who lived it, because they can share the good and the bad about an industry. He’s seen that himself, as he came from the construction industry before joining Max Hayes. So far, these industryschool partnerships have been piecemeal, but Magnet — the Manufacturing Advocacy and Growth Network — in Cleveland is looking to formalize them in the manufacturing space, bringing high schools, community colleges and companies together in what it’s calling the Early College, Early Career program. Interim vice president of workforce Richard D. McClellan said the program will start with foundational activities like plant tours at the freshman level, but would grow to include hands-on training and college courses by the time students are juniors and seniors. The goal would be to graduate students with a high school diploma, industry certifications and the start of an associate’s degree. The program won’t just be for the Cleveland public schools — in fact, Magnet CEO Ethan Karp said the design will be modular so it can work at any school — but the district likely will be involved. McClellan said the pilot, which will likely begin in fall 2016, will start with large companies, but Magnet wants to make sure the model is accessible to smaller companies, too. “We see a very clear opportunity to reinvent this ladder to the middle class and to put it back into place in our economy,” McClellan said. 20160620-NEWS--23-NAT-CCI-CL_-- 6/17/2016 3:34 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 23 Business of Life Yacht club is sailing along Tod Sackett and Dillon Furlong of Mentor lower their boat into the water at the Edgewater Yacht Club in Cleveland. (Ken Blaze for Crain’s) By JEREMY NOBILE To Chad Atzemis, there’s little better freshwater sailing than that on Lake Erie. The 25-year veteran mariner of Chesterland, who races sailboats some three to five days a week, likened Cleveland’s Great Lake to a local ocean as he squatted barefoot on the bow of his boat as it gently bobbed in the cool waters at its dock in the Edgewater Yacht Club. At the time, he was sanding “Tenacity” — his vessel — prepping it for some fresh white paint. “It’s an inland sea, and it can be trial by fire out there,” Atzemis said, referencing conditions that can quickly change from mellow to wicked — and you don’t want to be caught off guard when a storm rolls in. Yet, the oft unpredictable ocean-like waters of Lake Erie are what make every trip a different experience, notes Edgewater commodore Duane Wolff. Sometimes the water is as mellow and flat as a mirror. Other times, it’s precariously choppy. “The weather changes a lot, and fast,” Atzemis said. “But really, it’s better sailing than most other lakes.” Every excursion is a unique experience, whether setting out for racing, fishing, sailing to Put-In-Bay or the Canadian coast or just taking a leisurely spin in the lake that offers spectacular views of downtown Cleveland. There’s a long history of recreational sailing that’s drawn people to Lake Erie. And the area’s sailing clubs have carried on that tradition well over the past century. Atzemis is one of more than 1,500 members in some 570 member families at the Edgewater Yacht Club, one of Cleveland’s oldest clubs for new and veteran mariners on the near West Side between the city and Lakewood. The nonprofit club itself is seeing a resurgence in popularity along with the activity itself, logging some of its best membership numbers since the early 1990s. General manager Ron Wolfe chalks that up to several factors, from improvements to the club — it added a pool to its clubhouse in the last several years and will undergo a longawaited $2 million renovation starting this fall Edgewater Yacht Club commodore Duane Wolff says Lake Erie offers better sailing opportunities “than most other lakes.” that a new membership base has helped push for — to renovations of the nearby neighborhoods that have been drawing more people to live downtown. Edgewater is actually open year-round, offering a popular socializing spot even during the winter months when the lake is frozen solid. Of the nearly 400 wet docks alone, about 350 are filled. And more reservations for what they call transient docks are lined up during the week of the Republican National Convention. “The redevelopment of places like Gordon Square and Ohio City is bringing a bunch of new members,” Wolfe said. “More young people are coming down and discovering the club. It’s really been a boom for this area.” This club’s roots trace back to the 1890s with the original Cleveland Yachting Club, whose initial home was off an East Ninth Street pier. Sailors would eventually split off and form their own clubs in the coming years. The Cleveland Yachting Club incorporated in Rocky River in 1910, as those who preferred the original location in Cleveland stayed there and adopted the Edgewater name. Several years later, members of both groups formed the Lakeside Yacht Club. The idea of yachting might carry a certain stigma, evoking images of stuffy Thurston Howell III types in fancy suits. But that’s not the atmosphere here at all. On a late summery weekday afternoon, the club is busy and lively with people of all ages and lifestyles. It’s a friendly and inviting presence. Many members are just getting off work, grabbing a whiskey at the bar or carrying small coolers shuffling with ice and beer to their boats. The bulk are sailboats — or yachts, which are really just midsize sailboats, though some are certainly much larger than others — but there are powerboaters, too. Others, like Atzemis, are taking advantage of the mild weather to get in some needed maintenance. Plenty others are taking to the water. On this Wednesday afternoon, sailors young to old are gearing up for races later that night. Some are just lounging in the clubhouse or on their ships in the docks. And they’re all brought together by Northeast Ohio’s most precious natural resource in this Great Lake. “It doesn’t matter if you’re going out for an hour or for a couple of weeks,” said Wolff, whose boat is named “Champagne and Ripple,” a reference to one of the favorites drinks of Fred Sanford of the popular 1970s sitcom. “There’s something new to learn every time. It’s appealing in that manner. It’s what gives it a challenge. “And at the same time, it can also be quite peaceful and relaxing” he added. “There’s nothing quite like sailing on Lake Erie.” 20160620-NEWS--24-NAT-CCI-CL_-- PAGE 24 6/17/2016 11:32 AM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch Mark Rantala is always brimming with ideas and observations. As executive director of the Lake County Ohio Port and Economic Development Authority, Rantala said he starts each day the way he did in 23 years as a broker for commercial real estate: “You start the day reinventing the position. Every day offers a new challenge and new opportunity.” He has been executive director of the authority for three years. Prior to that, he served almost two years as executive director of the Nederland Economic Development Corp. in Nederland, Texas. However, Rantala is not new to Northeast Ohio or real estate development in the region. He served as a broker for retail real estate for CBRE Group and other concerns for nearly 30 years. He worked on shopping center developments and store leasing throughout Northeast Ohio, including many transactions in Lake County. He did the turn in Texas to get into the economic development business; the Lake County job brought him home. — Stan Bullard Mark Rantala Why is it a port authority? You don’t have a port. There is a port in Lake County. We just don’t own it. Several private operators ship more than 200 million tons, mostly of aggregate, through the port. We do own an airport: Lost Nation Airport, which we operate as a tool for business retention and attraction. It’s valuable for manufacturers and other business owners to have that quick access to the airport. The Ohio Legislature envisioned port authorities as economic development engines. We have capabilities beyond just financing to foster, aid, provide or promote transportation, housing, recreation, government operations and culture as well as financing. retire in the next 10 years, and the number of millennials entering the workforce is insufficient to meet this need. We estimate that Lake County alone will be short between 4,000 and 8,000 workers over the next decade. With a 3.7% unemployment rate today, rather than finding a job for every worker, we are challenged to find a worker for every job. estate broker. In brokerage, it’s always a case of knowing who to go to in order to do something. The amazing thing is the variety of things we do in Lake County. We are in aerospace, automotive, lubricants and nurseries. We have 900 manufacturing businesses. On a daily basis, I go into plants and leave amazed at what we do here. I expected a real estate answer. Are you working on anything in that vein? We are working with real estate developers to get some speculative industrial space developed. The market is extremely tight. CoStar estimates a 2.8% industrial vacancy rate in Lake County. Is economic development just about business attraction? Over 80% of job creation comes from businesses that are already in the community. Business retention and expansion is critical. We have a countywide campaign to provide regular contact with the businesses of Lake County. We have over 900 manufacturers in Lake County that are major supply chain components for the automotive, aerospace and advanced manufacturing driver industries in Northeast Ohio. How did working in economic development in Texas affect your outlook on this job? I wanted to be more aggressive in economic development in Northeast Ohio. In Texas, economic development is on steroids. In Texas, 60% of development spending is on infrastructure to make deals happen, such as access roads, and 40% on credits. In Ohio, most of the emphasis is on job tax credits. We need to have someone who wants to come into the area, then do what it takes to help them set up shop. Is economic development just about smokestack or call-center or tech company chasing? More than 80% of job creation comes from businesses that are already in the community. We have a countywide campaign to provide regular contact with the business of Lake County. We have manufacturers that are in major supply chains for multiple industries. What is the top economic development challenge in Lake County and the region? Workforce. Over 25% of the workforce in Lake County will Did Lake County have any surprises for you? I knew Lake County well as a real Why did Lake County launch teacher day? A new teacher here from Bowling Green State University who is new to Lake County may not know much about the county. We help teachers spend a full day in manufacturing concerns in Lake County to appreciate that there is a future in manufacturing. When a kid mentions to a teacher that he wants to work in manufacturing, we want them to know it’s a viable career path. People who work in manufacturing earn on average $10,000 more annually than the median income in Northeast Ohio. DEVELOPMENT FOUR THINGS: FAVORITE INTEREST Baseball. I love visiting baseball parks. I have been to more than 40 ballparks, both minor and major league. With two friends, I participate in baseballphd.net, a weekly podcast about baseball. FAVORITE BOOK Joel Kotkin’s “The Next 100 Million: America in 2050.” It should be required reading for anyone who wants to shape the future of Northeast Ohio. PERSONAL LIFE My wife, Mary Anne, and I live in Rocky River, where our two daughters graduated from high school. I grew up in Ashtabula LAKE ERIE’S IMPORTANCE We’ve done focus groups with students in high school and college about why they would live in Lake County. The first two reasons are for a job and to be near family. The third: to be near the lake. LUNCH SPOT Brennan’s Fish House 102 River St., Grand River The meal Both had perch sandwiches, neither with the standard French fries. One substituted cole slaw, the other salad. One glass of water and one diet Coke. One key lime pie. The vibe The perch is terrific. Rantala said it is the best he’s ever had and he gets people to go to Brennan’s to prove it. Lake County locals know about Brennan’s, but regionally, it’s less well-known than the famous Pickle Bill’s on the riverfront side of the street. The bill $36.45 + tip 20160620-NEWS--25-NAT-CCI-CL_-- 6/17/2016 2:56 PM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 25 STREAMLINK CONTINUED FROM PAGE 1 When First Analysis called StreamLink for an update this past December, the company was well on its way to achieving the ambitious goals it had laid out a few years earlier. As a result, the investment firm, which also offers investment banking and equity research services, ended up chipping in $3 million during the latest round. “They’ve done what they said they were going to do,” Greendale said. StreamLink’s revenue stream has grown by huge percentages for several years in a row. Sales increased by 80% in 2015, said CEO Adam Roth, who declined to give specific revenue figures. Today, the company has 43 employees, a number that will rise as it ramps up its sales and product development efforts. To make room for them, it recently moved into an 11,000-square-foot office on the fifth floor of downtown Cleveland’s Caxton Building. The company previously used about 7,000 square feet on two other floors. During the company’s first few years in business, its growth was driven by its first product: BoardMax, which was released in 2008, helps nonprofits communicate with their board members. Today, however, 70% of the company’s revenue comes from its grant management product, AmpliFund, Roth said. Though StreamLink will continue to offer BoardMax, Roth predicts that AmpliFund will continue to generate most of the company’s growth for the foreseeable future. The federal government is doing a lot to create demand for products like AmpliFund. For instance, in May 2014, Congress unanimously passed the Digital Accountability and Transparency Act, which requires the U.S. government to collect standardized data related to federal spending and publish it online. DATA — which is being implemented over the course of several years — requires grant recipients to meet new reporting requirements. Then, in December of that year, another set of federal rules called Uniform Guidance went into effect. Among other things, those rules require states and other entities that distribute federal grant money to monitor it more closely, Roth said. Thus, StreamLink aims to start winning business from entire states — not just state agencies. Another factor driving demand for AmpliFund: These days, governments are more inclined to share data on how they spend taxpayer dollars via the web, even when they aren’t forced to do so by regulations, Roth said. “They can’t (share the data) if they can’t capture it,” he said. Land and expand The company already works with the District of Columbia, and it’s starting to do some work with statelevel agencies, which could help it eventually win statewide contracts. Winning statewide contracts could help StreamLink land more local contracts as well, Roth said. “If we sell to a state, for example, and a state signs up its counties and distributes funds to those counties, we see all those counties as potential full customers of AmpliFund at some point,” he said. The new capital will help the company go after bigger contracts. StreamLink is already starting to win larger customers. For instance, as First Analysis was performing its due diligence, StreamLink “signed the largest deal in its history,” Greendale said, noting that the client is a government entity. Greendale predicts that even bigger deals are on the horizon. “A single deal could potentially be 100% revenue growth,” he said. In addition to First Analysis, the $10 million round included capital from several existing investors: North Coast Angel Fund and North Coast Venture Fund, both of Northeast Ohio; Blu Venture Investors of Vienna, Va.; Hyde Park Venture Partners and Hyde Park Angels, both of Chicago; and several individual investors and management team members. ADVERTISING Crain’s People on the Move promotional feature showcases Notheast Ohio job changes, promotions and board appointments. Guaranteed placement in print, online and in a weekly e-newsletter can be purchased at www.crainscleveland.com/peopleonthemove. ARCHITECTURE NONPROFITS REAL ESTATE Thomas E. Veider Kelly Shaulis Eric Yates Thomas Bennett Peter Shanes AIA, NCARB, LEED AP BD+C AIA, NCARB, LEED AP Project Manager Moody Nolan Project Manager Moody Nolan Project Manager Moody Nolan Executive Director Diabetes Partnership of Cleveland Vice President-Managing Broker Prime Capital Properties LLC Tom has more than 25 years of experience ranging from small renovation projects to designing large, new facilities. He is not satisfied until every option has been tested and the best solution is found. Tom has a working knowledge of all projects phases, from programming through construction administration. He also has a passion for planning and believes that the best designs are those developed in a team approach with the client. Kelly possesses a strong background in historic preservation and restoration including preparation of National Register Nominations and Historic Tax Credit Applications. Kelly is currently taking the A.R.E. to become a registered architect and is a recipient of both the 2008 and 2009 Cleveland Restoration Society & AIA Cleveland Preservation Award. Eric has substantial experience in design, document development, and construction administration of K-12 Education projects. His experience has been gained over 12 years of designing and managing school projects in Ohio and West Virginia for both locally funded and state co-funded designs. Eric's commitment to fostering a collaborative environment between all project stakeholders assures transparency and a successful project partnership. Prime Capital Properties LLC, is pleased to announce that Peter Shanes has joined the firm. With more than three decades of experience in Asset Management, Brokerage, Receiverships and Construction Management, he brings a wealth of experience to the team. Peter has completed hundreds of successful assignments in all facets of commercial real estate for local and national firms. He is known to have a diplomatic personality, helping to create win-win solutions for Landlords and Tenants. Prime Capital Properties LLC, is pleased to announce that Peter Shanes has joined the firm. With more than three decades of experience in Asset Management, Brokerage, Receiverships and Construction Management, he brings a wealth of experience to the team. Peter has completed hundreds of successful assignments in all facets of commercial real estate for local and national firms. He is known to have a diplomatic personality, helping to create win-win solutions for Landlords and Tenants. LAW FINANCE ARCHITECTURE Derek Behm Project Designer ThenDesign Architecture (TDA) TDA welcomes Derek Behm to our team as a project designer. With 8 years of experience, Derek has extensive knowledge of large-scale renovation and new construction projects, particularly for developers. He is a graduate of the Kent State University’s Cleveland Urban Design Collaborative, where he earned a Master’s of Architecture. Learn more about TDA at www.thendesign.com. Brad Gellert Ralph Streza Mitch Kendall AIA, NCARB, LEED AP BD+C CES Board Member Senior Architect Critchfield, Critchfield & Johnston Vice President & SBA Loan Specialist ThenDesign Architecture (TDA) TDA welcomes Brad Gellert as a senior architect. With over 30 years of experience, he has keen expertise for complex planning and design issues, particularly within the preservation, K-12 education, and higher education sectors. His designs have garnered multiple awards and he is widely recognized for his thought leadership on sustainability. Brad earned his Bachelor's Degree from Yale University and a Master's of Architecture from Columbia University. Learn more about TDA at www.thendesign.com. Critchfield, Critchfield & Johnston announces that the Cleveland Engineering Society elected Ralph Streza to its Board of Directors. CES connects northeast Ohio's engineering community. "In what I do, engineers help me to explain how things work," said Streza. Streza practices in CCJ's Medina office and focuses his practice in the areas of product liability & safety among others. Best Lawyers 2016 most recently recognized Streza in the area of Product Liability. Liberty Bank Liberty Bank is pleased to announce the addition of Mitch Kendall to its Commercial Banking team. Kendall has 13 years of banking and business lending experience, specializing in SBA lending.A graduate of Kent State University, Kendall helps Ohio businesses grow by facilitating business finance.Liberty Bank is a Preferred SBA Lender which ensures an expedited loan process. To learn more, visit libertybankna.com For more information or questions regarding advertising in this section, please call Lynn Calcaterra at 216-771-5276 or email: lcalcaterra@crain.com 20160620-NEWS--26-NAT-CCI-CL_-- PAGE 26 6/17/2016 11:12 AM Page 1 z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS REAL ESTATE Phone: (216) 771-5276 Contact: Lynn Calcaterra E-mail: CLBClassified@crain.com AUCTIONS ONLINE Real Estate Auction Bid Today on West Jefferson Investment Opportunities Closes July 13, 5:00 pm 9 East Main St. (Route 40): Current tenant First Merit Bank. NNN lease expires Dec. 2021. Has 2 renewals, 5 years each. 3,780 sq. ft. building with three-lane drive thru on 184’ x 150’ lot. Sells w/reserve. 93-101 East Main St. (Route 40): 84% occupancy, 6,086 sq. ft. Two well-established medical providers, national franchised sandwich shop. Parking front and rear. Sells Absolute. Learn more at: ucrealestateandauction.com Jon Leffler | (614)410-5638 Colliers International| Greater Columbus Region ^½®ZÝÙò INVESTMENT OPPORTUNITY BUSINESS SERVICES C.W. JENNINGS INDUSTRIAL EXCHANGE Global Industrial Consulting AUCTION ®Ä^«¥¥®½s®½½¦ Construction • Acquisitions Exporting • Financing (855) 707-1944 COMMERCIAL EVENTS CENTER FƵůůLJ&ƵŶĐƟŽŶŝŶŐϵ͕ϴϰϬнͬͲ^Ƌ͘&ƚ͘ PROPERTY INVESTMENT OPPPORTUNITY Looking for Partner in 144 Acre Farm. SWIM CLUB BUILDING Extend the Life of your ROOF Will share land & minerals which are in production and producing monthly revenue. Approved future Railroad Spur. For Sale - Wickliffe, Oh ϳ͘ϱϯнͬͲĐƌĞƐ STARTING 1372 Lloyd BID Rd.$125,000 8,210 SF ƵLJKŶĞKƌŽƚŚĚũĂĐĞŶƚWƌŽƉĞƌƟĞƐ͊ .86 ACvalue 216-831-4122 Unbeatable at yesteryear’s prices! Commercial/Industrial Roof Restoration. 1/3 the cost of replacement. FREE Inspection Report www.buildingretrofit.com (216)533-0563 Classified Ads WORK! ĞŶƚĞƌŽŶϳ͘ϱϯнͬͲĐƌĞƐ STARTING BID $250,000 CONTRACTOR'S Ϯ͕ϮϵϮнͬͳ^Ƌ͘&ƚ͘ƵŝůĚŝŶŐŽŶ dŽsŝĞǁĂůů͗ϮϭϲͳϰϲϵͳϳϬϴϭ www.OHAUCTIONS.net COMMERCIAL PROPERTY CONTRACTOR'S BUILDING For daily on-line updates, sign up @ CrainsCleveland.com/Daily Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card VACANT LAND dŚŽŵĂƐ^ĞĂŵĂŶ͕ƵĐƟŽŶĞĞƌ Chip Carpenter | (614)206-1135 United Country Real Estate & Auction Services CLASSIFIED For Sale - Wickliffe, Oh 1372 Lloyd Rd. 8,210 SF .86 AC 216-831-4122 WANTED: Waite Hill, OH One-of-a-kind Property. Half a mile of river frontage. This property would make a fabulous Estate Piece. 44 acre, $795,000 . For more information email or call Beth Ann Osborne bethannosborne@yahoo.com (216) 695-2967 FLYNN ENVIRONMENTAL UST REMOVALS • REMEDIATION DUE DILIGENCE INVESTIGATIONS (800) 690-9409 Put some “punch” in your classified ad... Use color and get your ad noticed! Serious Inquirys Only 888-278-2476 BUSINESS FOR SALE NICHE BUSINESS FOR SALE GROWTH INDUSTRY Non-Medical Home Care A one - stop solution for the furnishing of interior spaces for universities and colleges. Sales $6.5M Established, Excellent Rep., Growing. Eastside. Owner Retiring. Principals Only. www.empirebusinesses.com mike@empirebusinesses.com 440-461-2202 Send Inquiries to: clbboxreply@crain.com Reference box #1001 in subject line Looking to fill a position on your staff? Place an Executive Recruiter ad in Crain’s Call Lynn Calcaterra at 216-771-5276 Your subscription to Crain’s Cleveland Business To sign up call toll-free at 1-877-824-9373 or on-line @ CrainsCleveland.com Click on “Subscribe Now.” Serving as General Counsel for middle market businesses ...across northeast Ohio and beyond. Do you need someone to help you lead from the middle? Supporting middle market businesses is our sweet spot. We deliver guidance to your leadership team, protection for your assets, and assurance that your business is supported by someone who gets it. Buckingham, Doolittle & Burroughs LLC A Northeast Ohio Business Law Firm, Akron • Canton • Cleveland bdblaw.com 20160620-NEWS--27-NAT-CCI-CL_-- 6/17/2016 11:09 AM Page 1 CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 27 The List HIGHEST PAID CEOS Ranked by 2015 Compensation EXECUTIVE (AGE) COMPANY TOTAL COMPENSATION 2015 2014 % CHANGE SALARY 1 Richard J. Kramer (51) Goodyear Tire & Rubber Co. $19,307,800 $17,853,097 8.1 2 W. Nicholas Howley (63) TransDigm Group Inc. $12,674,856 $30,245,400 3 Lourenco Goncalves (57) Cliffs Natural Resources Inc. 4 CHANGE IN PENSION VALUE (1) COMPANY NET INCOME ALL OTHER IN 2015 COMPENSATION (MILLIONS) BONUS STOCK AWARDS OPTION AWARDS NONEQUITY INCENTIVE PLAN $1,100,000 $0 $2,052,344 $2,940,000 $11,577,753 $1,535,672 $102,031 $307.0 (58.1) $1,085,000 $0 $0 $11,574,156 $0 $0 $15,700 $466.6 $11,113,808 $9,477,142 17.3 $1,200,000 $0 $6,177,499 $1,440,947 $2,073,600 $133,502 $88,260 ($749.3) Charles E. Jones (2) JR. (59) FirstEnergy Corp. $10,024,119 $4,791,069 109.2 $1,118,558 $0 $5,995,031 $0 $1,807,812 $1,076,244 $26,474 $578.0 5 Thomas L. Williams (3) (56) Parker Hannifin Corp. $9,496,922 $6,162,409 54.1 $857,667 $0 $4,718,462 $1,745,870 $1,242,322 $769,731 $162,870 $842.8 6 Andreas W. Mattes (54) Diebold Inc. $9,391,174 $6,767,937 38.8 $928,418 $0 $6,271,703 $1,408,680 $459,375 $0 $322,998 $73.7 7 Matthew A. Ouimet (57) Cedar Fair LP $9,291,314 $11,561,569 (19.6) $961,840 $0 $6,587,006 $0 $1,668,600 $0 $73,868 $112.2 8 Edward F. Crawford (75) Park-Ohio Holdings Corp. $7,252,279 $7,597,040 (4.5) $750,000 $0 $2,923,200 $0 $3,379,203 $0 $199,876 $48.1 9 Beth E. Mooney (60) KeyCorp $6,994,704 $7,124,566 (1.8) $1,038,462 $0 $3,599,983 $399,997 $1,900,000 $4,987 $51,275 $916.0 10 Frank C. Sullivan (54) RPM International Inc. $6,675,601 $7,359,162 (9.3) $940,000 $0 $2,499,062 $2,146,000 $900,000 $65,192 $125,347 $329.8 11 Richard G. Kyle (49) The Timken Co. $6,643,770 $8,165,009 (18.6) $900,000 $0 $2,994,254 $1,295,954 $453,600 $837,000 $162,962 $70.8 12 John G. Morikis (4) (52) Sherwin-Williams Co. $6,010,399 $4,203,888 43.0 $877,054 $0 $1,715,340 $2,234,465 $913,000 $0 $270,540 $1,053.8 13 Michael F. Hilton (61) Nordson Corp. $5,639,519 $5,494,106 2.6 $825,000 $0 $1,752,298 $1,425,589 $800,000 $761,474 $75,158 $209.4 14 David J. LaRue (54) Forest City Realty Trust Inc. $5,627,411 $3,731,126 50.8 $675,000 $0 $3,478,514 $0 $1,408,388 $10,710 $54,799 $496.0 15 Christopher L. Mapes (53) Lincoln Electric Holdings Inc. $5,335,973 $3,113,446 71.4 $903,221 $0 $1,138,408 $1,097,410 $2,146,573 $10,997 $39,364 $127.5 16 Peter T. Thomas (59) Ferro Corp. $5,061,275 $6,927,510 (26.9) $890,590 $0 $2,144,187 $915,269 $820,600 $0 $290,269 $64.1 17 Paul G. Greig (59) FirstMerit Corp. $4,721,426 $4,917,636 (4.0) $1,045,891 $0 $2,115,594 $0 $1,312,282 $0 $247,659 $229.5 18 Walter M. Rosebrough Jr. (61) Steris plc $4,503,893 $3,800,574 18.5 $800,000 $0 $909,840 $1,588,091 $1,108,000 $0 $97,962 $94.4 19 Marc A. Stefanski (61) TFS Financial Corp. $4,355,250 $4,425,278 (1.6) $1,080,000 $0 $491,535 $1,161,739 $1,454,046 $49,982 $117,948 $73.8 20 Ward J. "Tim" Timken Jr. (47) TimkenSteel Corp. $4,188,490 $9,405,662 (55.5) $865,200 $0 $2,169,200 $960,450 $0 $0 $193,640 ($72.4) 21 Thomas M. O'Brien (48) TravelCenters of America LLC $3,932,970 $4,044,700 (2.8) $300,000 $2,564,500 $1,068,470 $0 $0 $0 $0 $27.7 22 Alfred M. Rankin Jr. (74) Nacco Industries Inc. $3,876,986 $3,768,901 2.9 $576,604 $0 $1,112,360 $0 $1,291,993 $647,779 $248,250 $22.0 23 Richard J. Hipple (62) Materion Corp. $3,845,411 $4,581,254 (16.1) $835,492 $0 $1,556,067 $534,452 $541,975 $372,025 $5,400 $32.2 24 Robert M. Patterson (42) PolyOne Corp. $3,725,576 $6,476,126 (42.5) $854,615 $0 $918,480 $930,020 $879,622 $0 $142,839 $144.6 25 Matthew E. Monaghan (5) (47) Invacare Corp. $3,596,335 N/A N/A $562,500 $0 $2,390,778 $0 $562,500 $0 $80,557 ($26.2) 26 Neil A. Schrimsher (51) Applied Industrial Technologies Inc. $3,448,702 $3,149,849 9.5 $820,000 $0 $1,465,692 $356,636 $651,572 $0 $154,802 $104.9 27 Robert G. Ruhlman (58) Preformed Line Products Co. $3,360,466 $3,362,257 (0.1) $763,380 $0 $1,715,144 $0 $572,535 $0 $309,407 $6.7 28 Samuel F. Thomas (63) Chart Industries Inc. $2,954,168 $3,994,358 (26.0) $775,000 $0 $917,000 $1,116,315 $0 $0 $145,853 ($203.0) 29 Kevin M. McMullen (54) Omnova Solutions Inc. $2,953,789 $3,088,035 (4.3) $769,000 $0 $1,548,696 $0 $573,000 $0 $63,093 ($15.7) 30 Alfred M. Rankin Jr. (74) Hyster-Yale Materials Handling Inc. $2,807,331 $3,463,700 (18.9) $844,900 $0 $665,124 $0 $958,893 $36,577 $301,837 $74.7 31 David J. Oakes (37) DDR Corp. $2,695,407 $2,292,538 17.6 $591,875 $0 $1,159,568 $219,850 $676,400 $0 $47,714 ($72.2) 32 R. David Banyard (6) (46) Myers Industries Inc. $2,540,293 N/A N/A $39,231 $500,000 $2,000,024 $0 $0 $0 $1,038 $17.8 33 Bernard Rzepka (7) (55) A. Schulman Inc. $2,327,619 $1,414,384 64.6 $652,737 $0 $1,138,473 $0 $516,821 ($28,053) $47,641 $23.0 34 Chris A. Raanes (50) ViewRay Inc. $1,846,325 $826,724 123.3 $415,000 $0 $0 $1,317,200 $114,125 $0 $0 ($45.0) THIS YEAR COMPANY NET INCOME % CHANGE FROM 2014 -87.5 47.5 89.6 93.3 -22.7 -35.6 7.7 5.5 1.8 49.7 -141.5 21.7 -17.8 6,631.2 -50.0 -25.5 -3.6 -28.8 11.0 -169.4 -54.5 157.7 -23.7 82.6 53.3 -11.8 -48.1 -347.9 -321.1 -32.0 -161.5 304.6 -50.5 -33.1 RESEARCHED BY DEBORAH W. HILLYER Source: Numerical information provided by S&P Global Market Intelligence, www.spcapitaliq.com. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. (1) Change in Pension Value and Nonqualified Deferred Compensation (2) Jones named president, CEO on Jan 1, 2015. (3) Williams named CEO Feb. 1, 2015. (4) Morikis became CEO on Jan. 1, 2016. (5) Monaghan named CEO April 1, 2015. (6) Banyard became CEO Dec. 7, 2015. (7) Rzepka became CEO Jan 1, 2015. 20160620-NEWS--28-NAT-CCI-CL_-- 6/17/2016 11:09 AM Page 1