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Window closing for XP support Once Microsoft stops providing security help, many businesses will be on their own By CHUCK SODER csoder@crain.com
Still use Windows XP? You’ve got a target on your back. Microsoft says it will end almost all support for XP on April 8. That pronouncement means no more security updates for the many, many local businesses that still rely on the second-most widely used operating system for desktop and laptop computers.
Hackers probably have that date circled on their calendars, according to Jay Mellon and other information technology experts here and nationwide. The patient ones probably are waiting until then to exploit undiscovered flaws in the Windows XP software, because Microsoft has said it won’t step in to fix them after April 8. “The hammer’s going to drop on the other side of that date,” said Mellon, a partner at AtNetPlus, an information technology services firm in Stow. Mellon’s business and other local IT companies are on a last-minute push to make sure their clients that still use the 13-year-old operating system are as ready as they can be come April 8. See WINDOW Page 38
Solon complex soon will get a makeover SCOTT POLLACK
WILL SUPPORT BE DISPLAYED? Arts group will use this year to gain backing for extension of cigarette tax
By JAY MILLER jmiller@crain.com
I
f the political football — or baseball or basketball — that is the sin tax for Cleveland’s sports playgrounds batters the community this year, will Cuyahoga County voters be willing to renew another tax on their cigarettes in 2015? That’s the question already on the mind of the local arts community, which, like the Browns, Cavaliers and Indians, is supported by a sin tax.
07
See SUPPORT Page 8
Cosmetics company Cosmax will occupy L’Oreal’s property By STAN BULLARD sbullard@crain.com
Before the city of Solon says its final goodbye to the operations of cosmetics maker L’Oreal’s, it’s saying hello to its replacement, Cosmax Inc., a South Korean cosmetics company that plans to launch its
U.S. operations in L’Oreal’s properties on Carter Street. Cosmax USA, as the company calls its new U.S. venture, plans to operate a skin care and makeup factory to supply cosmetics to customers that sell name-brand products in the United States, said Sok-Min Yu, managing director of the new operation, in an email to Crain’s from South Korea. The company is a contract manufacturer and supplier for private-label firms and name brands such as L’Oreal and Maybelline. See MAKEOVER Page 7
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ALSO INSIDE
LOCAL BREW Cleveland Coca-Cola plant reveals community branding ■ Page 5
Entire contents © 2014 by Crain Communications Inc. Vol. 35, No. 7
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WWW.CRAINSCLEVELAND.COM
FEBRUARY 17 - 23, 2014
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Publisher/editorial director: John Campanelli (jcampanelli@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park Lazette (mpark@crain.com) Finance Rachel McCafferty (rmccafferty@crain.com) Manufacturing and energy Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams
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2013 Employer Health Benefits Survey, The Henry J. Kaiser Family Foundation, August 20, 2013, http://kff.org/report-section/2013-summary-of-findings/ Accessed 11/19/2013. 2Aflac Company Statistics, October 2013, One day processing turnaround based on business days after required documents are received. Online claims available for Accident, Sickness, Cancer & Wellness claims. 3 Eastbridge Consulting Group. U.S. Worksite/Voluntary Sales Report. Carrier Results for 2012. Avon, CT: April 2013. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 Z131178
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It’s a different way of finding a place to stay Alternative lodging, sparked by such sites as Airbnb and Homeway, is quickly gaining popularity in Northeast Ohio By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
Billy Fronimo and Nick Semertsidis are in the lodging business. But contrary to what you might think from the name of their website — Cleveland Comfort — they don’t run a hotel, inn or bed and breakfast. The two men are among a growing legion of residential property owners who are renting out rooms in their apartments or homes — and in the case of Fronimo and Semertsidis, entire houses — to outof-town visitors who are looking for alternatives to the Marriotts and Holiday Inns of the world. Internet sites such as Airbnb and Couchsurfing have made it possible for people who are interested in short-term lodging but don’t want to stay in a hotel to connect directly with folks who are willing to open their homes, condos and apartments to strangers. As the names of the websites imply, sometimes the accommodations for guests are as simple as an air mattress or a couch. However, in many cases, hosts offer visitors rooms or entire properties. People who rent via sites such as Airbnb or HomeAway do so for a
nightly, weekly or monthly fee. However, under the Couchsurfing system, no money changes hands. In Northeast Ohio, the popularity of short-term alternative lodging is climbing. Cleveland-area Airbnb listings surged 134% from December 2012 to December 2013, a media representative for Airbnb said in an email, though she could not provide the number of hosts. Guests to Cleveland via Airbnb shot up 240% over that period. As of Feb. 14, there were 116 rentals listed on Airbnb in the Cleveland area, about half where the entire home was available and half with just a private room. Semertsidis, a managing partner of Cleveland Comfort, said he thinks the opportunity to live like a local is part of the appeal to people who choose to stay in a home or apartment instead of a hotel. It gives guests, such as those who might be relocating to the city, the chance to see a neighborhood instead of just the touristy parts of Cleveland. Semertsidis had worked in longterm rental in the past, but decided to join Fronimo in his short-term rental business last November. Fronimo started Cleveland Comfort last June with one unit of a duplex
Volume 35, Number 7 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Š 2014 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 Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
“This is not for the average guest.� – Billy Fronimo, managing partner, Cleveland Comfort in Lakewood to see what the local short-term rental market was like. It rented frequently, he said, so he started adding more properties in order to book multiple guests at the same time. The short-term rentals in Fronimo’s portfolio — he also has longterm rentals — were something he’d thought about for a couple years. They’re in safe neighborhoods, he said, and near downtown. “I knew I had the right real estate and the right areas,� he said. While he said the pricing is comparable to or less than a hotel room, Fronimo doesn’t view Cleveland Comfort’s rentals as real competition to the hotel business. “This is not for the average guest,� he said. Instead, the homes and apartment-style spaces he runs see a lot of Cleveland Clinic patients and families who are staying for a longer period of time or large groups that can’t fit easily into a more traditional space.
Welcoming the world Cleveland Comfort advertises its homes on its own website, as well as on sites such as Airbnb and Vacation Rentals By Owner, a HomeAway Inc. site. See STAY Page 35
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, 482079911, or email to customerservice@crainscleveland.com, or call 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
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5
INSIGHT
Groups work to discredit job data Team NEO, Cleveland State team up to say Cleveland stats from U.S. Bureau of Labor Statistics are very ‘unreliable’ By JAY MILLER jmiller@crain.com
Several watchers of the local economy are mounting a crusade because they believe the federal government isn’t giving the Cleve-
land area a fair shake when it reports on employment. These crusaders from Cleveland State University and Team Northeast Ohio, the regional business attraction nonprofit, say federal number-crunchers unfairly have
pinned a “job loser” sign on the Cleveland metropolitan area. So they’re challenging the way the U.S. Bureau of Labor Statistics, or BLS, estimates the number of jobs gained or lost monthly in metropolitan areas.
SEE FOR YOURSELF If you want to read the numbers that are in dispute, check out the Current Employment Statistics for Cleveland at: tinyurl.com/obsazhx. Those numbers have led to headlines that say the Cleveland area, since at least April 2013, has been part of a small group of metropolitan
areas that have been the losing, rather than gaining, jobs. Those headlines, the CSU and Team NEO officials believe, send a false signal that can be interpreted to mean that the local economy is in a dive. The monthly federal labor report, called the Current Employment Statistics, or CES, is best known for being the earliest reported estimate of unemployment rates See DATA Page 33
Hyland is sold on making big gains overseas Westlake-based software firm hopes to triple its international revenue in the next ‘few years’ By CHUCK SODER csoder@crain.com
Want a job at Hyland Software? It wouldn’t hurt to learn Swahili. The Westlake-based provider of content management software has big international ambitions: Within a few years, sales from outside the United States should account for about 30% of Hyland’s total revenue, up from 10% today, according to Brenda Kirk, vice president of strategy for the company. It’s a big goal, but Hyland now has the infrastructure in place to achieve it, Kirk said. “We’re building on a foundation that’s ready to grow,” she said. Kirk wouldn’t say exactly what she meant by “a few years,” but even if she means five years, it’s an ambitious goal. Hyland’s international “We’re building on sales would need to climb a foundation that’s steadily just to remain at 10%, given how fast the ready to grow.” company has grown overall during the last several years. – Brenda Kirk, vice president of strategy, But after more than a Hyland Software decade of working to expand sales outside the United States, Hyland’s international growth is starting to accelerate. The company signed contracts with 166 international customers in 2013, up from 144 last year and 135 in 2011. Hyland’s growing legion of software resellers deserves some of the credit for driving the increase. Hyland has relationships with about 150 foreign companies that resell and provide service related to its OnBase content management software, up from 98 in 2010. Among those resellers are a few global information technology and imaging companies, such as Hewlett-Packard, Konica Minolta and PFU Ltd., a Japanese company owned by Tokyo-based Fujitsu Ltd. Recruiting foreign companies to sell OnBase — which Hyland customers use to organize and sift through electronic documents and other materials — is a key part of the company’s international growth strategy. Combined, Hyland’s 150 international resellers generate about 90% of the company’s international sales, Kirk said. By contrast, resellers account for roughly half of Hyland’s U.S. sales, she said. “If we can find a partner to do it, then we probably will,” she said.
Sprechen sie Deutsche? Plus, Hyland’s own 1,650 employees is a more global bunch than it was a few years ago. See HYLAND Page 6
THE WHOLE PACKAGE Coca-Cola plant in Bedford Heights has a Cleveland-centric look and packs quite an economic punch By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
W
henever someone buys an ice-cold can of Coca-Cola in Cuyahoga County, they can rest assured their beverage’s trip from bottler to cooler was a short one. The Cleveland Coca-Cola Bottling Co. plant in Bedford Heights has exclusive rights to sell the soda giant’s products in bottles and cans to retailers, restaurants and everyone else in the county. And now, the bottling company is underlining just how important it considers the Cleveland area to be in its new logo, which was introduced to its 250 employees just last week. “We are local people,” said director of sales and marketing Randall Cornette. “When you do purchase our products, you are purchasing from your neighbors.” The logo, which was designed by an employee in a plant-wide contest, depicts a Coca-Cola bottle nested within the Cleveland skyline on a backdrop of a bottle cap. The new logo also highlights the company’s ties to the region since 1905 and conveys that it has been familyowned — albeit by different families —
REBECCA R. MARKOVITZ PHOTOS
This Coca-Cola logo was designed by an employee in a contest at the company’s plant in Bedford Heights. It depicts a Coke bottle nested within the Cleveland skyline. the whole time. PittsburghINSIDE: More images according to Benzino, though based Abarta Inc. bought the he declined to share the from the Coca-Cola plant in 1971. Peter Benzino, plant’s annual revenue. plant in Bedford president of Abarta Beverage Cornette said Coca-Cola Heights. Pages 36, 37 West and vice president and Co. works with the indepenGM of the plant, said the holding compadent bottlers and understands the imporny is independent of Atlanta-based Cocatance of a local feel to the brand. CleveCola Co.; that independence gives Cleveland isn’t alone in its regional pride: there land Coca-Cola autonomy to set and are other independent bottlers, such as follow its own business plan. those in North Carolina and the Abarta In the past 20 years, the plant has been operation in Buffalo, N. Y., that are estabamong the 10 largest independent botlishing local branding, he said. Clevetlers based on cases sold in Coca-Cola’s land’s new logo will be found on the comsystem, Benzino said. In about the past pany’s advertising, trucks and uniforms. three years, it’s been the fifth largest, See PACKAGE Page 36
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CRAIN’S CLEVELAND BUSINESS
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Construction jobs in Akron area soar from big projects Experts credit better economy; Cleveland sees small increase
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In the feast and famine cycle of the construction business, Summit and Portage counties just finished a turn at the feast side of the table. An analysis of construction and related employment statistics by the Washington, D.C.-based Associated General Contractors trade group ranked the Akron Metropolitan Statistical Area sixth in the nation in terms of construction-related job increasesin 2013. The number of construction and related jobs in the Akron MSA soared 18% to 12,000 at the end of 2013 from 10,200 a year earlier, according to the trade group’s analysis of U.S. Bureau of Labor Statistics figures. Meantime, the Cleveland-ElyriaMentor MSA managed to stay 1% ahead of a year ago as employment rose to 32,400 as of Dec. 31, 2013, from 32,200 a year ago. Although the statistical category includes construction, mining and timbering, industry experts in Summit and Portage counties credit the rise in employment to an increase in building post-recession rather than jobs created by Ohio’s shale energy boom. The biggest driver of the employment jump was the $265 million evolution of Northfield Race Track in Northfield in Summit County into the Hard Rock Rocksino. The mammoth project involved the addition of a video lottery terminal gaming area, restaurants and entertainment venues to the race track. Connie Krauss, Summit County director of economic development,
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Officials from the Hard Rock Rocksino, as well as former Browns quarterback Bernie Kosar (far left), smash guitars for the grand opening of the Rocksino, one of the biggest construction projects in the Akron area last year. said commercial and institutional construction and the re-emergence of home construction accounted for the rise in construction-related jobs in her county. She said shale-related activity may be benefiting the county indirectly, but she has no anecdotal evidence of it. In Portage County, Brad Ehrhart, president of the Portage Development Board, credited the construction job gains in part to institutional projects from a new municipal court-house in Kent to housing and a fitness center at Northeast Ohio Medical University in Rootstown. Ehrhart said several commercial projects, such as big-ticket projects in downtown Kent, also contributed to the work. The Cleveland-Elyria-Mentor MSA managed to maintain its construction employment pace even though several downtown Cleveland construction projects, such as Ernst & Young Tower in the Flats and the Global Center for Health Innovation and Cleveland Convention Center,
finished up last year. Much of the continued momentum came from construction of new apartments and conversion of underused office buildings to apartments. Carmine Torio, executive vice president of the Home Builders Association of Greater Akron, credits part of the employment increase to the pick-up of home building and home remodeling. He estimates at least 400 jobs of the 1,800-job increase in the Akron MSA is due to residential work. Torio has no doubt the growth the building-related jobs rings true. During the worst of the recession, Torio recalled, his area lost about 6,000 construction jobs simply due to the drop in housing starts. Now, building contractors and subcontractors are hustling to find replacement workers to replenish their depleted ranks. “I know everyone is looking for framers and siders,” he said of the carpenters who install the wood frames of houses and enclose them. ■
Hyland: Foreign partners fuel expansion continued from PAGE 5
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For instance, three years ago the company promoted a member of its human resources staff to become its first dedicated international recruiter. Since then, international recruiting has become part of every recruiter’s job. And Hyland has started putting a bigger premium on foreign language skills when hiring employees, even if they’ll mainly be working at its Westlake headquarters, Kirk said. “It’s a huge differentiator for candidates,” she said. It took a long time for the company to get to this point. For at least 10 years, Hyland executives have been telling Crain’s about the company’s plans to expand international sales. A decade ago, however, Hyland had just seven employees in England, a few in Brazil and one in Japan, according to a Crain’s story written at the time. Now the company has about 140 employees dedicated to its international business, 73 of which are based in other countries. As that expansion took place, the company has learned a lot about
“We took the pieces that did (work) and we’re repeating it.” – Brenda Kirk, vice president of strategy, Hyland Software what works and what doesn’t when doing business in other regions, especially in Latin America, which accounts for roughly half of Hyland’s international sales, Kirk said. “We took the pieces that did (work) and we’re repeating it,” she said.
‘Off the charts’ potential Hyland is right to rely heavily on foreign companies to sell and service OnBase overseas, according to Tom Eid, a research vice president at Gartner Inc., a Stamford, Conn.based company that studies the IT industry. Foreign companies often prefer to conduct business face to face, and they tend to want more services after the purchase than U.S. companies, Eid said. For a company such as Hyland —
which competes with Microsoft, IBM and some other larger companies in the content management space — working for foreign partners is a fast way to put “feet on the street,” said Eid, vice president of enterprise application software at Gartner. “You need to have local partners,” he said. Market trends could help Hyland meet its 30% goal. Demand for content management software is growing faster overseas than it is in the United States, Eid said. Over the next five years, sales for that segment of the software industry should grow by doubledigit percentages annually in every region of the world other than North America and Western Europe, he said. Kirk has seen the statistics. Companies in the United States are more likely to have adopted content management software than their foreign counterparts, which means big opportunities exist for Hyland in other lands. “The growth potential is just off the charts,” she said. ■
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Makeover: Solon plant could have nearly 60 full-time workers by 2016 continued from PAGE 1
“We plan to start small and will increase gradually,” said Yu, who noted that Cosmax could begin operations in Solon by the end of 2014 depending on completing construction in the building and other factors. “We’re sure it will be more than a couple hundred (employees) once we reach maximum capacity, but we’re not sure exactly how many,” he said. Cosmax is in negotiations with Solon for an income tax incentive on a payroll that may reach as much as almost $7 million in 2016, according to Peggy Weil Dorfman, the city’s economic development coordinator. A recently filed application for the incentive, which calls for the city to cut a check for the company based on a percentage of municipal income taxes its employees pay there the preceding year, estimates Cosmax will have 47 full-time and 99 part-time employees in 2015. By 2016, Cosmax forecasts it will reach 59 full-time and 150 part-time employees. Cosmax also said it will employ workers from temporary agencies, perhaps more than 100, Dorfman said. Solon’s jobs incentive program typically pays an amount equal to 30% to 40% of the tax paid by a new
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+191.6%
Source: businessweek.com company’s employees, according to Dorfman. The program allows the incentive to range between 10% and 50%. Although the city incentive package still needs to be finished, Cosmax already is committed to the project. That’s because Cosmax already bought the L’Oreal manufacturing and office complex. Cosmax last month paid L’Oreal $7.3 million for the three-building complex at 30501 to 30701 Carter, according to Cuyahoga County land records. The complex is appraised by the county at $9.5 million for property tax purposes. Cosmax plans to add equipment and complete some renovations to the properties, Yu said, so he “can’t guarantee” its launch of production will be by the end of the year.
The Solon plant will be the main factory in Cosmax’s U.S. plans. “U.S.A. is an essential market to us since it is the biggest cosmetic market as a country,” wrote Yu, who noted that a U.S. operation is a key part of a plan to make Cosmax the world’s largest cosmetics maker. Future plans, he said, call for expanding further in North and South America. L’Oreal, which is based in France, will exit Solon by the end of this year. In 2012, L’Oreal announced a plan to move its shampoo and hair conditioner production to plants in Kentucky and New Jersey. It plans to retain a warehouse in Streetsboro. A warehouse L’Oreal owns on Arnold Miller Parkway in Solon still is available, Dorfman said. The buildings previously served the locally born company Matrix Corp., which created the Matrix Essentials line of personal care products that Arnold and Sydell Miller sold to Bristol-Squibb Meyer in 1994. The latter company sold the business to L’Oreal in 2000. Cosmax and L’Oreal reached the deal for the property between themselves, Dorfman said. “To have something like this brought to us, we greatly appreciate it,” Dorfman said. ■
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The arts sin tax, first approved by a 56%-to-44% vote in 2006, levies a 30-cent tax on each pack of cigarettes, and it’s heading for a sunset by the end of 2016 if it isn’t renewed. The tax supports arts organizations ranging from the Cleveland Orchestra and the city’s major museums to individual artists, neighborhood arts festivals and children’s theater productions. When the dust settles on the sports tax, renewed or not in 2014, Cuyahoga County voters will be asked in 2015 to continue a sin tax that generates about $16 million annually and supports nearly 200 organizations and events. “We see 2014 as the year to organize and get out our message,” said Thomas Schorgl, president and CEO of the nonprofit Community Partnership for Arts and Culture. “Over the next year to year-and-a-half, we’ll be working, and arts and culture organizations will be communicating with their (attendees) and members,” about the importance of the public money, he said. The Community Partnership for Arts and Culture, or CPAC, devised the tax plan nearly a decade ago and continues to be a think tank and advocate for local arts programs. It likely will play a key role in whatever campaign is mounted to renew the tax. Schorgl said a decision on the creation of a political action committee is several months away. But in a wide- ranging conversation last Wednesday, Feb. 12, at his office in the restored Tower Press Building at 1900 Superior Ave. — a home for
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“We have to prove to voters why this is a good investment. ... We work hard to touch all 59 communities that comprise our county.” – Karen Gahl-Mills, executive director, Cuyahoga Arts & Culture many artists — Schorgl laid out what likely will be the pillars of a campaign to renew the tax. Schorgl said he believes the community values the arts programs supported by the tax, both because of the enjoyment people personally derive from attending concerts, theaters and educational programs, as well as for their impact on the economy. In its most recent annual “Culture Pulse Report,” CPAC found that the county’s arts and culture programs, many of which receive county sin tax money, spent $284 million while employing 3,444 full- and part-time workers in 2011. Schorgl said that in Cuyahoga County, the arts play an important role in stabilizing and growing some of the older neighborhoods of Cleveland. He cited a half-dozen neighborhoods as examples; among them is Detroit-Shoreway, where residential and retail development is following the growth of the taxpayer-supported Gordon Square Arts District, which includes Cleveland Public Theatre, the Near West Theatre and the Capitol Theater. Schorgl also said the arts are an asset for the local business community. “It’s an asset for the corporate community as well as anybody in business,” Schorgl said. “You want to attract talent, and (some) of the elements of attracting talent are the things in a community that are unique, engaging and entertaining.”
Spread it around To make sure voters will understand the concepts Schorgl laid out, Cuyahoga Arts & Culture, the county agency that administers the sin tax proceeds, has spread its grantmaking to every corner of the county. Its logo adorns the programs and posters of organizations ranging from the Cleveland Museum of Art to the Talespinner Children’s Theatre in Cleveland and the Westlake Chinese Cultural Association. “We have to prove to voters why
this is a good investment,” said Karen Gahl-Mills, executive director of Cuyahoga Arts & Culture. Gahl-Mills pointed to a map of the county in the organization’s annual report with what she said were 2,000 dots representing locations where organizations supported by the sin tax have performed. “We work hard to touch all 59 communities that comprise our county,” she said. The biggest grants provide annual operating support to the major cultural institutions. In 2014, those grants are to the Cleveland Museum of Art ($1.5 million), the Cleveland Orchestra ($1.5 million), PlayhouseSquare ($1.7 million) and the Rock and Roll Hall of Fame and Museum ($1 million). But Cuyahoga Arts & Culture this year also will be supporting the 15th annual “A Day at the Chalet” festival in Strongsville ($4,142) and LakewoodAlive’s “Front Porch” concert series ($4,450). Cuyahoga Arts & Culture’s 2012 annual report states that more than 321,000 county residents attended classes and workshops that received tax money.
Six tax’s ‘public appeal’ Using a sin tax to support the arts — or sports facilities for that matter — is controversial, and other communities have been watching and learning from Cuyahoga County’s experience. In Milwaukee County in Wisconsin, the Public Policy Forum, a nonpartisan government watchdog nonprofit, will issue a report next month laying out alternatives for an arts tax there. The experience in Cuyahoga County was one of five alternatives it examined. It also is looking at communities that have used sales and property taxes to support the arts. Rob Henken, that organization’s president, said while his nonpartisan group will not make a recommendation to the task force charged with developing a solution, he saw the value in Cuyahoga County’s approach. “When we look at what we might do, there is nothing to say that (a sin tax) approach wouldn’t be effective here,” Henken said. “One of the things we have noted about your approach is what it does in terms of public appeal. When you’re funding such a broad array of activities and it’s touching virtually every citizen, that (might) help you when you go to the polls.” ■
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Mortgage bankers make some history Industry’s trade association has never had an Ohioan at the helm, but now two from the state will lead it in back-to-back years
company and the future of real estate finance in America,” he said, citing legislation and regulators. “It just seemed as though the more I became involved, the more it simply made sense to be involved.”
By MICHELLE PARK LAZETTE mpark@crain.com
In reputation repair mode
Never before, at least according to records dating back to 1949, has this happened. Two mortgage bankers from the same state will chair the Mortgage Bankers Association in back-toback years, and they are Northeast Ohio’s own. They also are Northeast Ohio’s first: There’s no record of another Ohio banker chairing the Washington, D.C.-based association, which this year marks 100 years of representing the real estate finance business. It counts more than 2,200 member organizations. In the role since October is E.J. Burke, executive vice president and group head of KeyBank Real Estate Capital, and a Shaker Heights resident. As chairman of the 25-person board, Burke is asked to speak at state association meetings to communicate the Mortgage Bankers Association’s priorities and to hear the priorities of mortgage bankers across the country. He also speaks before lawmakers — and answers their questions — about the association’s views on a variety of matters, and provides oversight to the association’s staff. Burke expects to deliver up to 20 speeches by the time his chairmanship concludes Oct. 19. When Burke steps down, Bill Cosgrove — CEO and owner of Strongsville-based Union Home Mortgage Corp. and a Medina resident — will step into the role. “The mortgage banking industry is at a critical time in our history,” said Cosgrove, now chairman-elect. “In Washington, the debate is centered around what level of homeownership is the right balance, who should be a homeowner and who should be a renter. … To be leading during a time when America is rethinking what is successful homeownership is an incredible honor and an incredible opportunity.” Marc A. Stefanski, chairman and CEO of Cleveland-based Third Federal Savings & Loan, a big residential mortgage lender in Northeast Ohio, said in an email he congratulates his fellow Ohioans’ leadership. “It confirms that Northeast Ohio
enjoys some of the top mortgage banking professionals in the business, at a time when change within our industry requires vision, creativity and dynamic leadership,” Stefanski said in an email. Consecutive leadership by Ohio bankers — each of them chosen by an association nominating committee that asked members via formal ballot to elect its nominees — is exciting, said Marianne Collins, executive director and chief operating officer of the Ohio Mortgage Bankers Association in Westerville. “That really says something about our state, I think,” said Collins, who noted that the president of the National Association of Realtors, Steve Brown, hails from Ohio (Dayton). “I think it says that we grow some of the best people in the business,” she said.
Involved to the hilt Collectively, Burke and Cosgrove have more than six decades of real estate finance experience. Burke works on the commercial side of the business and at KeyBank heads a 650-person group for the nation’s fourth-largest commercial loan servicer; Cosgrove’s business makes single-family residential loans in about 18 states. Both bankers have been involved with the Mortgage Bankers Association for years. “In the midst of the crisis (of 2008), I knew that there would be reform, that it would have an impact on our business,” Burke said. “I thought that being more involved … I would either a) have some input into what that would look like or b) have a better view of what the outcome would look like, and better position the bank for whatever that outcome was.” Cosgrove, too, became increasingly involved to gain a voice. “I never really dreamed that I would be involved at this level,” Cosgrove said. “I never had this aspiration. “As my career progressed and our company grew, I just simply saw that the interaction … with Washington was becoming more and more important to the future of my
Burke
Burke is focused on leaving the Mortgage Bankers Association on “excellent (financial) footing,” unlike what it experienced during the recent housing crisis, as the group’s financial condition is tied to industry conditions. The association has an economics group that forecasts residential refinance and purchase volumes, and it now is using that group’s forecasts in its own planning “better than we did in the past” to ensure the Mortgage Bankers Association is adjusting its budget when necessary, Burke said. Burke also wants to build a more diverse and inclusive real estate finance work force. To that end, as chair-elect, Burke set up a diversity
Cosgrove
inclusion committee in June, which is to host a diversity inclusion conference. “If you don’t look like the people you serve, you might not necessarily connect with them,” Burke said. And finally, Burke wants to repair the mortgage industry’s reputation, which took a big hit during the financial crisis due to a deluge of foreclosures that cost tons of people their homes and left many homeowners with debt that exceeded the value of their properties. “There are a lot of people who don’t trust their mortgage lender today, so we need to take steps to change that perception,” he said. The effort to increase diversity is one piece of reputational repair, be-
cause if the mortgage business had had more diversity in senior-level management, some financial products that encouraged loose lending and helped create the crisis may not have existed, Burke said. Also, the MBA Opens Doors Foundation was established a couple years ago and continues to raise money to make mortgage payments for families with critically ill or injured children, Burke noted. Cosgrove, the association’s next Ohio-based leader, expects to keep a similar speaking schedule, to visit Capitol Hill regularly and to interact with legislators and regulators for the “betterment of our industry.” He also plans to return to his native region with something of value to share. “It gives me the opportunity to see … overall housing finance in America at a very high level, and I’m able to bring that back to our business in Northeast Ohio and really any groups in Northeast Ohio that I … interact with as well,” Cosgrove said. ■
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Gift to provide scholarships, youth programs The Cleveland Foundation said it has received a $1.7 million gift from the Erwin & Katherine Geis Charitable Foundation, which will establish a fund at the Cleveland Foundation to support programs for young people and provide scholarships. Erwin and Katherine Geis opened their family business as a machine shop in Northfield after moving from Germany in 1967. The business transformed into what today is known as the Geis Cos., a local construction powerhouse located in Streetsboro and co-managed by Erwin and Katherine’s sons, Fred and
Greg Geis. The foundation bearing their parents’ names was established in 2001 and is supported by employees of the company and members of the Geis family. “There were a number of people who helped my parents get started in Cleveland, and they never forgot that,” Fred Geis said in a news release. “Philanthropy has become the true legacy of my parents. Through our charitable work, which is a partnership with our employees, we hope to support others in the pursuit of the American dream.” — Timothy Magaw
90% of our print readers own a primary residence with an average value of $372,000. Book your ad today to get in front of this powerful audience. Contact Nicole Mastrangelo at 216-771-5158 or nmastrangelo@crain.com.
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PUBLISHER/EDITORIAL DIRECTOR:
John Campanelli (jcampanelli@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
C’mon, man
E
d FitzGerald must never have heard the one about people living in glass houses who shouldn’t throw stones. If he had, he wouldn’t have made the hypocrisy-laced pledge to serve a full term if elected governor of Ohio, and he wouldn’t have pushed his opponents to do the same. This is the same Ed FitzGerald who wasn’t done with his first term as mayor of Lakewood, yet leaped at the chance in 2010 to run for the new, powerful position of Cuyahoga County executive. This also is the same Ed FitzGerald who, by the time of this November’s election, will have spent 18 months — or 38% — of his 48 months as county executive campaigning to succeed John Kasich as governor. And he wants others to sign a pledge that they won’t check out on the people of Ohio to pursue another job opportunity? C’mon, man. FitzGerald’s ploy obviously is aimed at Kasich, whom various political pundits view as a possible Republican candidate for president in 2016. But this gambit oozes insincerity coming from a man with a track record of barely warming the chair of the job he’s in before he’s ready to move on to the next one. We will give FitzGerald his due. As Cuyahoga County’s first solo executive, he worked hard to root out the inefficiencies and payroll padding that marked county government during the corruptionfilled years that led to the end of the three-member Board of County Commissioners. His administration has done a good job of putting the past in the past and restoring a sense of integrity about the workings of county government. However, anyone who has watched FitzGerald stumble in recent weeks during his quest to become the Democratic Party’s candidate for governor can’t be blamed for wondering whether a guy who can’t run a decent campaign can be entrusted with running the affairs of the state of Ohio. To be specific, the FitzGerald team has displayed poor judgment with key campaign decisions. It made a major miscalculation when it tapped state Sen. Eric Kearney as their candidate’s running mate. It should have anticipated that the significant back taxes owed by Kearney, his wife and the newspaper publishing business in which they were involved wouldn’t play well with prospective voters. Those debts created a media stink, and the senator would leave the ticket in mid-December just three weeks into his run for lieutenant governor. Now comes the full-term pledge. Republicans already gleefully are beating him over the head with it in light of his own job-hopping past. “Thank you, Ed FitzGerald, for the opportunity to point out that you’re a career political opportunist, while Gov. Kasich’s stewardship of Ohio’s comeback has been getting national attention,” said Chris Schrimpf, spokesman for the Ohio Republican Party. FitzGerald still has eight-plus months to win Ohioans over. He needs to put them to better use than the previous nine
FROM THE PUBLISHER
Don’t just sell the job; sell Cleveland the generations that came before. They remember fairly vividly the day I are less religious, less likely to marry or interviewed for a copy-editing job at hold a driver’s license or own a house. The Plain Dealer back in the 1990s. They are more connected and more tatFirst came a grammar test, then five tooed, but also more idealistic, more or six face-to-face interviews, then a few concerned about community hours of a tryout on the copy and more eager to live away desk to see if I could spell JOHN from the suburbs (88% say headlines right. CAMPANELLI they want to be in an urban In between, I remember a setting). manager handing me a And perhaps most imporcoupon for a free meal in the tant for business leaders, who PD’s cafeteria. I ate with anwant only the very best milother job candidate, a guy lennials working for them, from out of town. We sat in three out of four young people awkward silence as we choose a location before they chewed. choose a job. Over the course of the day, If you hire people, you need we never left the building. to think about that for a We were both offered jobs moment. It is crucial. A good job with a and took them, mostly because it was an good company is simply not enough. If incredible opportunity. And because we you want to lure the best young minds, were members of Generation X. You you better make sure you add one more don’t want to pull that kind of interview name to the get-acquainted list on intertoday with the Millennial Generation. view days: Cleveland. Millennials — the 77 million of so Some companies have already wised Americans born between 1980 and 2001 up. — are already 34% of the work force. In At its “immersion day” for job candisix years they’ll make up almost half of dates, KeyBank has started bringing in U.S. workers. Engage! Cleveland, the young profesAnd they are completely different than
I
sionals organization, and the Downtown Cleveland Alliance to give presentations to potential employees. Engage and the DCA highlight the excitement and benefits of living in Northeast Ohio, the sense of community, the resources, the development, the opportunities, the food, drink and lifestyle. “Our job is to spread the word on what life is really like in Cleveland for young professionals,” says Ashley Basile Oeken, executive director of Engage. This isn’t graduate-level HR; this is basic stuff that a lot of us just don’t think about. Want the best young talent? Sell the region just as hard as you sell your company and the position. If you need help, reach out to Engage and the DCA. Both groups told me they are eager to assist employers. Stephanie Janowick, head of staffing and talent operations at Key, believes these kinds of presentations work. “When you say Cleveland, people say ‘Cleveland?!’ she says with mock incredulity. “Then you bring them here and you show them the amazing things Cleveland has to offer. Then they say, ‘I can see myself living here. I can have a career here, a family here.’” ■
TALK ON THE WEB Re: Browns shakeup ■ Fire Haslam. A fish rots from the head down. — Indy ■ The Browns “organization” has things completely backwards. Step one: Fire the coach after one season, playing with a mess given him by the CEO and general manager. Step two: Lose capable assistant coaches. Step three: Hire a new coach after an embarrassing search, headed by the CEO and GM. Step four: Fire the CEO and GM. Anyone else see the organizational dysfunction? Wonder why Flying J has its problems? — Vern Fuller
Re: United in Cleveland ■ I agree with publisher John Campanelli’s Feb. 10 column, “A distaste for
Reader responses to stories and blogs that appeared on: www.crainscleveland.com
what United has served.” I’m still grieving the loss of Continental Airlines and was hopeful that United would have adopted Continental’s service and culture. That clearly has not happened. I’m still waiting for a response from customer service for botched flights in January. As a frequent traveler, I look forward to other options. — Clevelandgirl ■ Good riddance to United. When it was Continental, I could fly at a reasonable rate direct to Houston or Richmond (not exactly “small” cities) for under $500. Now, unless I want to bounce around Chicago first, it is over $1,000. United SUCKS!
They were a poorly run, overstuffed, union-encumbered mess before the merger with Continental and now they’ve dragged my favorite airline into the quicksand with them. My only hope is that an Allegiant Air, Jet Blue or other strong discount carrier will come in to fill this gap. — Jeff Desmond ■ Didn’t we just know the Continental/United merger was going to screw us in more ways than one? Continental was the only airline I sort of almost enjoyed flying. I had vowed to never fly United again, even if stranded on a war torn desert island with a typhoon on the way, after two occasions when I was treated like putrid road kill by that airline. The abuse, contempt and insulting treatment was amazing to behold! Killing the hub in CLE is due to the retread United execs at work, I’m convinced. See WEB Page 11
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Northwestern Mutual is growing, but still hasn’t caught its ‘stride’ By MICHELLE PARK LAZETTE mpark@crain.com
“I promise you, Cleveland was not on anyone’s list.”
When John Ertz moved almost a decade ago from Milwaukee to grow Cleveland’s Northwestern Mutual office, he said others wouldn’t have regarded the opportunity he seized then like they would today. Because now, according to Ertz, Cleveland is becoming one of the financial services conglomerate’s “coveted offices,” the kind the company’s up-and-coming leaders await the chance to head. “I promise you, Cleveland was not on anyone’s list,” Ertz said of when he became managing partner in November 2004. “Today, people are looking at Cleveland and Northern Ohio and they’re saying, ‘Holy cow, that is an opportunity.’ ” Ertz in November moved Northwestern Mutual of Northern Ohio’s Cleveland office to Ernst & Young Tower in the Flats East Bank neighborhood, and he plans to grow into that space with new recruits. Since Ertz came to lead the territory, its annual sales to new clients
– John Ertz, managing partner, Northwestern Mutual, on moving to Northeast Ohio from Milwaukee in 2004 of products such as life insurance have more than quadrupled, to $13.2 million last year from $3.2 million in 2004. In the same period, the average amount of such sales per office companywide only about doubled. The increased business has led to a dramatic rise in rank for the Northern Ohio territory among Northwestern Mutual’s offices: In 2013, it ranked 29th out of 79 offices in terms of such sales, compared with 33rd out of 79 in 2011 and 72nd out of 97 in 2004. One driver of that growth is the expansion of Ertz’s oversight to other offices, including Toledo and Findlay in 2011, which added to his network 22 advisers, and Akron and Canton, which added 18. Today, Northwestern Mutual of Northern Ohio employs 104 financial representatives across several offices. Back when Ertz
arrived, its single Cleveland office counted 27 advisers. Ertz is hungry, still, for more growth. As an independent contractor of Northwestern Mutual, Ertz said he personally invested more than $1.5 million into moving his team to Ernst & Young Tower from the Ohio Savings Plaza building. That move netted the Cleveland office more than 2,000 square feet of additional space, something Ertz said it will need. “We’ve added people, and we have a very big recruiting desire over the next few years,” he said. Last year, Ertz said he recruited and retained 33 financial representatives, who are commission-based but cost roughly $21,000 each to recruit (via five interviews) and train. This year, he aims to recruit 70. “I feel like we haven’t really caught stride yet,” Ertz said. “My real goal is to lead the company (in brand new sales). Typically (it’s) the big cities that lead, and so for a midsize city like Cleveland to lead would be a major thing, and that’s really our goal.” ■
Web: What about credit card sales? continued from PAGE 10
Ohio’s attorney general should screw them to a wall. But watch — the Republican regime in Columbus will do nothing. — David J. Gill
Re: Online sales ■ One of the main reasons Geraci’s Restaurant in University Height is losing out on some sales, as highlighted in the Feb. 7 Editor’s Choice blog, is they don’t take credit cards. Wake up, folks! — Chuck ■ The restaurant’s challenges have nothing to do with “online ordering.” Onosys, founded right here in Cleveland by Case Western students in 2005, provides online ordering systems for independents and
CRAIN’S CLEVELAND BUSINESS
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chains. But to have online ordering, you need to have a good website. The Geraci’s site — are you kidding me? Then you need to market your website and ordering system, and preferably have a mobile app for ordering (no big deal if you’re using an established system). You also have to provide delivery and you MUST accept credit/debit cards. It’s terrific that Geraci’s pizza is old style. Not so much that their ordering and payment systems are, too. — slsmag
■ No media experience for Zelman? What an idiot. You’ll be gone in a year, but hey, good luck. Oh, and by the way, you’re no Jeff Bezos. Sounds like your parents don’t know how to say no. — Jon M.
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Re: New management at Scene ■ Good luck to Andrew Zelman! Hopefully it works out! — Jabotinsky
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Online auction company bids on itself EASi plans to double both staff and office space in 2014, sees large market ahead By CHUCK SODER csoder@crain.com
It took two years for Electronic Auction Services Inc. to start winning the trust of government agencies. But once it did, the company in Hudson started scooping up business in the public sector — a “wide open” market for companies that conduct reverse auctions where vendors bid against each other online, according to Ben Koberna, a partner at Electronic Auction Services, better known as EASi. Now that the 4-year-old software and services provider has endured a few “Herculean sales cycles” and landed contracts from a few big government entities, it’s doubling down on that market, Koberna said. In late January, EASi raised an undisclosed amount of capital from Joe Whang, who is CEO of Matrix Pointe Software, a Middleburg Heights company that makes software for lawyers, courts and law enforcement agencies. With the help of that money and
its growing base of revenue, EASi plans to grow from 11 to more than 20 employees over the course of 2014. To house those employees, the company plans to move into a larger, 3,500-square-foot office across the street from EASi’s existing 1,600-square-foot headquarters on Georgetown Road, where Koberna shares his office with three people. The company was profitable on $1.4 million in sales last year, but it can’t sit still, given the opportunity in the market, Koberna said. “If we can run fast now, we have a really clear playing field,” he said. Here’s how EASi’s reverse auctions work: Vendors bid on a contract during a set time frame. They don’t know exactly how much other vendors bid, but they can see where they rank. That ranking is influenced by price and other built-in factors. For instance, the incumbent vendor could be given a 6% advantage over competitors, to account for the cost a buyer might incur when switching vendors.
Ramping up After a slow start, EASi has had little trouble winning government business over the last two years, Koberna said. That’s partly because the company has been around long enough to generate some statistics that show the benefits of using its
services. The 329 reverse auctions EASi had run as of Tuesday, Feb. 4, produced an average savings of nearly 17%, compared to the contracts they replaced, Koberna said. More than nine in 10 — 92% — produced bids that beat the incumbent on price, he said. It also helps that EASi now serves some big-name government clients, including the state of Michigan, the city of Los Angeles and the city of Chicago. Cook County, which encompasses Chicago, was the first big government entity to work with EASi. The contract took two years to win, but it gave the company the experience and credibility needed to become a bigger player in the public sector, said Koberna, who founded EASi with four partners in 2010. The company is “just scratching the surface” on big opportunities in both the government and private sectors, where it mainly serves retail companies, according to Whang, who is now EASi’s executive chairman. Whang said he invested in EASi because of the savings it has produced for clients and because it helps those clients run their auctions. Other companies in the reverse auction business typically provide software or consulting — not both, according to Whang. He has some experience in the field: In
the early 2000s he was a senior executive at Printcafe, a publicly traded Pittsburgh company that helped companies buy printing services.
Get that homework done As of 2011, only 20% of government entities used software to run reverse auctions, according to a survey conducted by the National Institute for Governmental Purchasing in Herndon, Va. Even today, governments using such software remain the minority, according to Brent Maas, executive director for business strategy and relationships at the institute. Reverse auction companies targeting the public sector are “toward the front end” of the trend, Maas said.
“If we can run fast now, we have a really clear playing field.” – Ben Koberna, partner, EASi Maas said he doesn’t expect reverse auctions to reshape the way governments buy most of their products and services. It can be difficult for governments to use the technique to make complex purchases, Maas said. But it can be done: He noted how Maricopa County, the home of Phoenix, worked with a different vendor,
BidSync, to buy dental and life insurance via reverse auction in 2012. As a result, the county and its employees will save nearly $6 million over three years, a 32% decrease in costs. That project required a lot of planning up front to prequalify suppliers, Maas said. “The key is they did their homework,” he said. With the investment from Whang, EASi also hopes to improve its software to the point where some clients, especially smaller ones, could run reverse auctions without much help from EASi employees, who staff each one. The company is working on a pilot project that could help it reach that goal: It plans to train employees at the Lake County Educational Service Center to run reverse auctions on behalf of a group of government agencies in Lake and Geauga counties that want to buy products together. EASI previously helped the service center conduct reverse auctions for snow removal and lawn care services, said Brian Bontempo, superintendent of the service center. That effort inspired the new project, which is financed by a $100,000 grant from Ohio’s Local Government Innovation Fund. “If government entities can purchase smarter, than we should be doing it,” he said. ■
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Nonstop commitment Greater Cleveland’s business community has been highly engaged in the effort of the past few years [V LUZ\YL /VWRPUZ (PYWVY[ OHZ LMÄJPLU[ HPY ZLY]PJL We thank you and ask for your continued support. *VU]LUPLU[ HUK HMMVYKHISL HPY ZLY]PJL ILULÄ[Z HSS VM .YLH[LY *SL]LSHUK HUK 5VY[OLHZ[ 6OPV ¶ I\ZPULZZ HUK SLPZ\YL [YH]LSLYZ HSPRL ;OH[»Z ^O` ^L PU[LUK [V IL YLSLU[SLZZ PU V\Y LMMVY[Z [V OLSW H[[YHJ[ HKKP[PVUHS ÅPNO[Z KLZ[PUH[PVUZ HUK JHYYPLYZ [V *3, [V JVTWSLTLU[ <UP[LK»Z UVUZ[VW ZLY]PJL [V JP[PLZ *SL]LSHUK PZ H Z[YVUN HPY ZLY]PJL THYRL[ HUK OHZ L]LU TVYL [V VMMLY JHYYPLYZ [OHU Q\Z[ H ML^ `LHYZ HNV ¶ HU \WNYHKLK HUK TVYL LMÄJPLU[ JVUZ\TLY MYPLUKS` HPYWVY[¯ H OPNO WLYJLU[HNL VM WHZZLUNLYZ ^OV LP[OLY ILNPU VY LUK [OLPY [YH]LS OLYL HUK HYLU»[ Q\Z[ WHZZPUN [OYV\NO¯ HUK IPSSPVUZ PU UL^ KL]LSVWTLU[ [OH[ ^PSS PUJYLHZL HPY KLTHUK ¶ UV[ [V TLU[PVU H Z\WWVY[P]L I\ZPULZZ JVTT\UP[` >L YLTHPU JVTTP[[LK [V ^VYRPUN ^P[O [OL *P[` VM *SL]LSHUK *\`HOVNH *V\U[` [OL :[H[L VM 6OPV local businesses and other partners to help ensure that Cleveland travelers can get where they want [V NV HUK [OH[ ]PZP[VYZ JHU KPZJV]LY HSS [OH[ V\Y YLNPVU OHZ [V VMMLY
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FEBRUARY 17 - 23, 2014
GOING PLACES JOB CHANGES CONSULTING SS&G PARKLAND: Tami Bolder to associate director.
ENGINEERING TES ENGINEERING: Robert Ambrose to director; Hilmi Tannous to project manager.
FINANCIAL SERVICE JOHNNYCAKE FINANCIAL SERVICES: Lee Quinones to partner; Michele K. Johnson to financial adviser. SKODA MINOTTI: Robin Thomas
to marketing coordinator, Strategic Marketing Group. SS&G: Marie Brilmyer and Mark Batey to directors, assurance services; Leif Erickson and Thomas Kotick to directors, tax services; Beth Reho, Rhonda Miller, Sharon Keener and Thomas Fantin to associate directors, assurance services; Deborah Defer to associate director, QuickBooks and financial accounting solutions team. SS&G WEALTH MANAGEMENT: Patrick Hahn to associate director. WALTHALL CPAS: Nicholas G. Jurkiw and Emily A. Woods to staff accountants.
LEGAL BAKERHOSTETLER: Brian A. Bulson, John J. Harrington, Melissa A. DeGaetano, Lisa M. Ghannoum, Gretchen L. Lange, Michael D. Meuti and Joseph F. Verciglio to partners. BENESCH: Jessica N. Angney, W. Clifford Mull, Patrick O. Peters and Shaylor Steele to partners; Madeline McGrane and Christian Moratschek to associates.
Thomas
Feczko
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Mlakar
Lockshine
Corrado
HAHN LOESER & PARKS LLP: Carlos P. Garritano to partner. TUCKER ELLIS LLP: Jonathan Feczko, Michael Ruttinger and Seth Wamelink to counsel.
MANUFACTURING CLEVELAND COCA-COLA BOTTLING CO.: Leona Jackson to cold drink manager; Jason Wypasek to quality assurance manager.
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VALLEY ART CENTER: Jennifer Ferone to office manager.
PLASTIC SAFETY SYSTEMS: David McKee to roadway safety consultant.
SERVICE
PMI INDUSTRIES INC.: Jay Marino to manager, laboratory services and government engineering operations.
FERN EXPOSITION & EVENT |SERVICES: Jeff Lockshine to account executive.
TIMKEN CO.: Timothy A. Graham to vice president, purchasing, bearings and power transmission business.
TECHNOLOGY
MARKETING C.TRAC: Jeff Culliton to business development manager.
36 South Fr anklin Street Chagrin Falls
to executive director; Rocky Melendez to assistant director.
MCPC INC.: Marcia Stanton to accounts receivable specialist; Matthew Carlsen to associate financial analyst. MEDINA COUNTY FIBER NETWORK: David Corrado to CEO.
NONPROFIT
PARAGON CONSULTING: Christopher Westfall to Sitecore technical trainer.
BUILDING HOPE IN THE CITY: Brian Upton to executive director.
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CLEVELAND FOUNDATION: Ginger F. Mlakar to senior counsel and director, donor relations. MERRICK HOUSE: Stacia Naoum
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BUILDING HOPE IN THE CITY: Debra Griest to president; Jonathan Reitz to vice president; Timothy Foust to secretary;
Matthew Galen to treasurer. FEDERAL BAR ASSOCIATIONNORTHERN DISTRICT OF OHIO CHAPTER: Jason A. Hill (Sixth District Court of Appeals) to president; Dennis G. Terez to president-elect; Tim L. Collins to vice president; Anthony J. Vegh to secretary; Rebecca J. Bennett to treasurer; Virginia A. Davidson to immediate past president and national delegate. FIRST GENERATION FOUNDATION: Robert B. Young (Lorain County Community College) to chairman.
AWARDS JEWISH FEDERATION OF CLEVELAND: Rabbi Hal Rudin-Luria (B’nai Jeshurun Congregation) received the 2013 Bennett and Donna Yanowitz Leadership Award.
Send information for Going Places to dhillyer@crain.com.
Northern Ohio auto dealers see rise in monthly sales figures By SCOTT SUTTELL ssuttell@crain.com
The year is off to a good start for Northern Ohio auto dealers. The Greater Cleveland Automobile Dealers’ Association said sales of new cars and light trucks in January rose by more than 3% from the like month of 2013. Franchised new vehicle dealers in 21 counties of northern Ohio sold 19,053 vehicles in January, up 3.24% from 18,455 in January 2013, the association reported. “Any time you can report positive growth, it is good for our industry as well as the overall economy in Northern Ohio, which is so dependent on the automotive industry,� says Louis A. Vitantonio, president of the association, in a statement. Vitantonio said the growth “is even more significant because it came during a period of bad weather, which usually has an adverse impact on sales.� In addition, Vitantanio noted, January 2013 registered a 14.9% increase from January 2012, “so we were going up against some pretty
ON THE WEB Story from: www.crainscleveland.com
“Any time you can report positive growth, it is good for our industry as well as the overall economy in Northern Ohio.â€? – Louis A. Vitantonio, president, Greater Cleveland Automobile Dealers’ Association strong sales figures during the month.â€? The association said the numbers gave “some insight as to the impact of adverse weather on the marketâ€? during January. For instance, Northeast Ohio’s leading brand, Ford, sold 3,398 vehicles in the month, down 1.34% from January 2013, and the No. 2 brand, Chevrolet, was flat at 2,612 vehicles sold. But brands that offer four-wheel drive vehicles, such as Jeep and Land Rover, “roared out of the gate,â€? the association said. â–
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BRIGHT SPOTS Bright Spots is a periodic feature in Crain’s highlighting positive business developments in the region. To submit information, email Scott Suttell at ssuttell@crain.com. ■ Matt Fieldman, a leader in the health care practice at digital marketing and analytics firm Fathom, has been named “Fundraising Professional of the Year” by Fundraising Success magazine. Fieldman was honored for his work raising more than $422,000 in nine month for Edwins, an upscale restaurant in Cleveland dedicated to helping ex-offenders get their lives back. The restaurant opened last November. Edwins’ founder and CEO Brandon Chrostowski said Fieldman’s “daring and unconventional leadership” as Edwins’ board president was instrumental in making the project a reality. Fathom, which has about 130 employees, said in a news release that Fieldman’s 13 years of experience in the nonprofit world “helped him clarify and execute on the vision of creating a social enterprise that would not have to rely on fundraising to make ends meet.” The firm said Fieldman’s leadership also helps Fathom “live its purpose directly.” In 2012, he created and led the Fathom Gives Program, which in its first year generated $33,000 of giving in the form of cash donations and sponsorships, employee matches, pro-bono work and volunteerism. In 2013, the program grew to $149,000. Fathom CEO Scot Lowry said that for 2014, Fieldman has challenged the firm “to set an aggressive twopart goal to take (Fathom Gives) to the next level: First, achieve $1 million in aggregate giving since inception, then ultimately achieve $1 million of giving in a single year.” ■ Kent State University Hotel and Conference Center announced a partnership with Stash Hotel Rewards, which bills itself as the largest loyalty program for independent hotels in the United States. The partnership means travelers now can earn and redeem Stash points at the hotel in Kent. The property is the 80th independent, collegetown hotel to join the Stash program to reward families and alumni for their travel back to campus. We see tremendous value in being part of the Stash program,” hotel general manager Mike Riccio said in a statement. “Our Kent State alumni community will appreciate the opportunity to earn points for their frequent trips back to campus, and it will keep our property top-of-mind each and every time they visit.” Kent State University Hotel and Conference Center opened last summer as part of the city of Kent’s $100 million redevelopment project. It features boutique-style guest rooms and suites; 5,000 square feet of meeting space; an on-site restaurant and lounge; and an indoor pool and spa. ■ Juventas Therapeutics of Cleveland, a clinical-stage company developing regenerative therapies for the treatment of cardiovascular disease, said it has started enrollment of a Phase II clinical trial to evaluate the safety and effectiveness of JVS-100 delivered through retrograde infusion to patients with symptomatic heart failure. Co-principal investigators for the trial are Dr. Amit Patel, director of cardiovascular regenerative medicine at the University of Utah, and
Dr. Eugene Chung, director of the heart failure program at the Ohio Heart and Vascular Center. Juventas said the Phase II study follows the successful enrollment of the open-label, doseescalation Phase I portion of its RETRO-HF program. The multicenter trial enrolled 12 patients with heart failure who received JVS-100, according to the company. It describes RETRO-HF as “the first clinical trial in the world to use the minimally invasive technique of retrograde infusion via the coronary sinus for delivery of a gene therapy to the heart.” Dr. Patel said in a statement, “The Phase I study demonstrated
that retrograde infusion is a safe procedure through which we can deliver biologics to the heart. We are excited to collaborate with additional clinical centers to initiate and complete the Phase II component of the trial.” Juventas said the randomized, doubleblind, placebo-controlled Phase II RETRO-HF trial will enroll 60 patients with symptomatic heart failure to receive JVS-100 at 30 mg or 45 mg or placebo. The patients targeted for treatment with JVS-100 have advanced stages of heart failure where their therapeutic options are usually limited to a heart transplant or a mechanical assist device.
The trial will enroll at 15 centers across the United States. ■ Great Lakes NeuroTechnologies in Valley View said it once again is sponsoring scholarship awards to promote and support biomedical engineering education. Two $1,000 scholarships are available to Northeast Ohio high school seniors interested in studying biomedical engineering at a college or university in fall 2014. The GLNT Dave Stolarski Memorial BME Scholarship and the GLNT Duncan Lowne Memorial BME Scholarship were launched last year. “We were so impressed by the quality of submissions last year and the passion for biomedical engi-
neering that the applicants expressed, we were inspired to offer the scholarships again this year,” said Holly Alexander, scholarship coordinator, in a statement. Alexander said the scholarships “honor (Great Lakes NeuroTechnologies) team members who lost battles with diseases that could be impacted by innovations in biomedical engineering. It’s our belief that (biomedical engineering) education for students can help to solve these types of healthcare challenges and we want to do whatever we can to support that.” The deadline for submissions is April 30. More details on the scholarships can be found at glneurotech.com/2014-bme-scholarships/. ■
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Qure buys Tompkins Pharmaceutical Rubber A quest for completeness
Company hopes deal will help it become more comprehensive supplier in long run By BRUCE MEYER Rubber & Plastics News
Qure Medical of Twinsburg has bought Tompkins Pharmaceutical Rubber of South Plainfield, N.J., in a deal that will boost Qure’s offerings to the pharmaceutical side of the medical business. The unit of Twinsburg-based Q Holding Co. closed the deal Jan. 24 and sent out a letter that day to Tompkins customers saying Qure would work with them to make the transition period as seamless as possible. Terms of the deal and how much revenue the Tompkins business posted last year were not disclosed. “It was not a distressed bargain buy,” said Randy Ross, Q Holding president. “The business has been well-managed. It’s been performing successfully. But when the owners got through the whole process, they recognized it could be even better in our hands. You’ve got to pay for good technology and good companies, but it was worth it to us.” The Tompkins business has made rubber components for the pharmaceutical industry since 1908. It was bought by Itran Precision Rubber in late 1998; Itran closed the Tompkins plant in Blue Bell, Pa., and incorporated its production into the Itran factory in South Plainfield. Over time the Tompkins production will be transferred to the Qure Medical plant in Rock Hill, S.C., according to Ross. The move will be
made gradually as needed customer qualifications and approvals are gained because the Tompkins portfolio largely deals with components that are listed in Drug Master Files with the Food and Drug Administration. “It’s not a simple ‘pick it up and move it’ in the sense that these are highly regulated markets, and these customers deal with life-saving and life-altering devices and medications,” Ross said. “We want to move at a pace the customers are comfortable with and meets their needs.” The Itran business will continue to operate at the South Plainfield plant, Ross said.
BRUCE MEYER
Randy Ross, Q Holdings president
Big step forward Much of the Tompkins’ processing technology is similar to what Qure has in place in Rock Hill, but the focuses of the businesses were different. Ross said Rock Hill concentrates more on the medical device side of the market with some business in the pharmaceutical sector, while Tompkins was more deeply involved in pharmaceuticals. Much of Tompkins’ products end up in drug delivery, where rubber stoppers are used in vials of drugs that are to be injected into somebody’s body. “This is where the Drug Master Files become so critical,” Ross said. “Tompkins has a great history in that space of developing com-
pounds that are inert relative to exposure to medicines they have to deliver.” Where Qure can help Tompkins improve is with its quality and processing systems, Ross said. “We think we bring some things when you combine the two businesses because of our quality operating systems, clean room manufacturing and our disciplines,” he said. “Their strengths and our strengths will fit together to give people a great pharmaceutical supplier.” Ross concedes that West Pharmaceutical Services Inc. remains the dominant player in the sector, but believes Qure Medical is a
strong No. 2 on the medical device side of the business, and the Tompkins acquisition makes it a “more meaningful competitor” on the pharmaceutical side. The Tompkins purchase jumps Qure four or five years forward in material science than if it had to develop it on his own, the Q Holding CEO said. “We believe the existing customers of Qure Medical will benefit from this because we can offer them a wider portfolio of products,” Ross said. “Similarly, a great group of customers that have been working with Tompkins will get the benefit of access to the wide variety of products that Qure Medical already offers.”
Ross is open about Qure Medical’s quest to be a more comprehensive supplier to its customers. It wants to deliver a wide variety of elastomer products from a wide range of geographic locations to its medical customers. He said many medical device makers have a supply chain that has grown too large, and that his firm can be a consolidator. “I believe there is a trend toward narrowing that supply base down to a smaller group of larger suppliers,” he said. “We think Qure Medical can deliver more products and technology in the elastomer space than anybody else in the medical or pharmaceutical business.” So Qure will continue to add to its technology and materials science competencies and expand its geographic reach, such as recent moves to produce components in China and distribute goods in Europe. “It’s really all about being the best possible supplier you can be to these customers and the belief that by doing more, we’ll ultimately become the supplier of choice because they don’t want to handle 100 different elastomer suppliers,” Ross said. That’s why the Tompkins acquisition was a “no-brainer,” Ross said. “You could just see that they had such a complementary set of customers and technologies to Qure Medical, and at the same time Qure Medical could bring a lot of improvement opportunities to Tompkins Pharmaceutical,” he said. ■ Bruce Meyer is executive editor of Rubber & Plastics News, a sister publication of Crain’s Cleveland Business.
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FEBRUARY 17, 2014
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Turning Passion Into Purpose W I T H T H E C L E V E L A N D F O U N D AT I O N T H E G E I S C O M PA N I E S
$1.7 million Geis gift to the Cleveland Foundation will support youth Volunteerism and philanthropy part of Geis Companies culture When Cleveland’s Rainey Institute was going through the bid process for its new building in 2009, one construction company stood out.
Streetsboro is one of the largest SURSHUW\ GHYHORSPHQW ÀUPV LQ the region, and is co-managed by Erwin and Katherine’s sons, Fred and Greg Geis.
“The Geis team invested the time “There were a number of people to get to know us and get to know who helped my our mission,â€? parents get started recalled Rainey in Cleveland, and Executive Dithey never forgot rector Lee Lazar. that,â€? said Fred. The communi“Philanthropy has ty-based organibecome the true zation embraces legacy of my the arts to nurErwin and Katherine Geis were married ture creativity in 1954 and set an example of philanthropic parents. Through charitable and good cit- giving that has been embraced by their our work, which is a izenship in its family and the employees of the company they launched in 1967. partnership with young students. our employees, we hope to supGeis Companies ended up winning port others in the pursuit of the the contract and building the 23,000 American dream.â€? square foot complex on East 55th Street. But the relationship didn’t end when Geis turned the completed building over to Rainey. “Through the process with Geis, an emotional connection took place,â€? said Lazar. “We’ve become family.â€? Rainey is just one of the organizations that Geis employees donate their time and resources to support. With a focus on youth causes, Geis recently decided to partner with the Cleveland Foundation, a community leader in youth development and education. Geis donated $1.7 million to the foundation to establish a fund to support programs for Cleveland-area youth and to provide scholarship opportunities. This commitment to giving back originated with Geis’ co-founders, Erwin and Katherine Geis. The couple opened the family business DV D PDFKLQH VKRS LQ 1RUWKĂ€HOG after emigrating from Germany in 1967. Today, Geis Companies of
hotel with apartments and other amenities on the site of the former Ameritrust Tower at E. 9th Street and Euclid Avenue. With its imprint on the landscape of Cleveland through such large-scale development projects, the Geis team is just as proud of some of the smaller-scale projects it has had a hand in creating. “At Rainey, Geis employees helped build the outdoor playground and a tiled collage wall.� said Fred. “Through our time spent volunteering on projects like this and the resources we are designating through our fund at the foundation, we know we are making a lasting impact on Cleveland’s future generation and honoring my parents’ memory in doing so.�
A philanthropy committee at Geis, comprising family members and employees, will work with Cleveland Foundation staff to direct the activities of the Erwin and Katherine Geis Charitable Foundation Fund of the Cleveland Foundation, while the foundation grows, manages, and disburses the money to selected causes. “On behalf of the Cleveland Foundation and future recipients of this generosity, we thank Geis &RPSDQLHV IRU WKLV JLIW WKH Ă€UVW of our centennial,â€? said Ronald B. Richard, president and CEO of the Cleveland Foundation. “Geis H[HPSOLĂ€HV WKH WHQHW RI WXUQLQJ passion into purpose through charity, employee volunteerism, and projects that are laying the groundwork for success for the next generation of Clevelanders.â€? Geis Companies is developing several projects in Greater Cleveland, including The 9, an upscale
(Top photo) Katherine Geis poses in 2003 at the annual reception for student recipients of the Geis Scholarships. (Bottom left photo) Geis employees showcase a tiled collage wall at the Rainey Institute that they created with the students in 2013. (Bottom right photo) Donning a Santa hat, Fred Geis spends time with Rainey students at the 2013 Christmas party Geis Companies sponsors annually for Rainey’s After School Program participants. Geis employees provide books, hot chocolate, and holiday snacks for all of the children.
To learn more about giving through the Cleveland Foundation, please call 877-554-5054.
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CRAIN’S CLEVELAND BUSINESS
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BUSINESS HOUR B
McDonald Hopkins
A conversation with former Congressman Steve LaTourette:
Policy and Politics in a Midterm Election Year Thursday, February 27, 2014
FEBRUARY 17 - 23, 2014
Uncorking the first phase of a NE Ohio wine campus KATHYAMESCARR
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n the midst of this stubbornly frigid winter, it’s hard to imagine sipping a glass of red or white on the patio of any of the 20 wineries located throughout Northeast Ohio’s Grand River Valley (or maybe it’s not). Now the region’s civic and business leaders are giving us one more reason to anticipate a return of summer. After nearly four years of planning, Windows — the first of a four-phase wine and culinary campus located at the heart of the state’s wine industry — is expected to open in early summer. Windows, part of the larger, $14 million, 38,000-square-foot Pairings center, will include a hands-on kitchen, tasting room and classrooms. An on-site demonstration vineyard with four vinifera (chardonnay, Riesling, cab franc and pinot gris); two grape hybrids of chambourcin and vidal blanc; and the native concord and Catawba grapes will illustrate the region’s diverse viticulture. When complete, the operation in Geneva will feature incubator space for startup wineries; will host regional wine tours and tastings, cooking classes, a farmers market, winemaking demonstrations and activities, and viticulture and enology classes through Kent State University; and will include restaurant and banquet facilities. The goal is to highlight Northeast Ohio’s culinary arts, grape-growing and winemaking industries and target those experiences to guests within a 500-mile radius. “The Grand River Valley here draws 20,000 visitors to the region each weekend from May through October, and about 15,000 visitors the rest of the year,� said Donniella Winchell, executive director of Ohio Wine Producers Association. “The center is expected to increase our annual wine tourism traffic to 90,000 visitors.� A key part of the project is a strong culinary component. Winchell said Pairings organizers are in talks with national celebrity chefs who would agree to serve as guest chefs. “We’re targeting foodies, our core
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boomer consumer base as well as millennials, who are adventurous, curious and experimental,� Winchell said. “We’re planning to be very socially engaged and are hiring a lot of younger people to foster an expanded consumer base.� To attract the younger, entertainment-driven audience, Pairings plans to conduct events such as ballroom dancing with wine pairings and date-night cooking classes. The center seeks to underscore the winery region’s breadth of varietals, which long have been considered sweeter and not as appealing to the experienced wine drinker. “We’re growing different grapes now. Our wines aren’t just limited to the native Lambruscos. We have award-winning chardonnays, Ries-
lings ‌ a complete spectrum of wines,â€? Winchell said. The project is in the midst of identifying state and federal grants. It already has received several loans and pledges from corporate entities such as Key Bank, local foundations and private donors. According to unofficial economic impact figures from the Ohio Department of Agriculture, the economic impact of the state’s wine-growing and related industries is $786 million, a 35% increase from $583 million in 2008. The department expects to release official numbers in the next couple months. Meanwhile, the number of wineries statewide has grown to 197, up 59% from the 124 in 2008. â–
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CRAIN’S CLEVELAND BUSINESS
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TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED Mobil Martin Inc. 1279 W. 73 St., Cleveland ID: 34-1962549 Date filed: Dec. 30, 2013 Type: Employer’s withholding, corporate income Amount: $316,760
Amount: $9,118 Premier Marketing Group Inc. 25630 Superior Ave., Cleveland ID: 34-1736080 Date filed: Dec. 31, 2013 Type: Employer’s withholding, failure to file complete return Amount: $8,695 Diversity Employment Services Inc. P.O. Box 43307, Richmond Heights ID: 27-0141285 Date filed: Dec. 31, 2013 Type: Employer’s withholding, unemployment, failure to file complete return Amount: $7,877 Nicks Bakery & Restaurant Inc. 3380 W. 46 St., Cleveland
ID: 20-8460568 Date filed: Dec. 30, 2013 Type: Employer’s withholding Amount: $7,053 Sadler Heating Aids Inc. Hearing Aids of Ohio NE 7251 Engle Road, Suite 110, Middleburg Heights ID: 14-1905278 Date filed: Dec. 31, 2013 Type: Employer’s withholding Amount: $5,337 African American Museum 1765 Crawford Road, Cleveland ID: 23-7030130 Date filed: Dec. 30, 2013 Type: Employer’s withholding, failure to file complete return Amount: $5,162
Date filed: Oct. 10, 2013 Date released: Dec. 31, 2013 Type: Employer’s withholding, unemployment, corporate income Amount: $38,898
LIENS RELEASED Auto Kingdom Inc. 10421 Lorain Ave., Cleveland ID: 26-3990800 Date filed: Aug. 6, 2013 Date released: Dec, 30, 2013 Type: Employer’s withholding Amount: $10,016 Cornerstone Missionary Baptist Church Inc. 6915 Miles Park Ave., Cleveland ID: 34-1438780 Date filed: Dec. 28, 2010 Date released: Dec. 30, 2013 Type: Employer’s withholding Amount: $32,660 Double Moose Management Co. Moose Head Hook & Ladder No 3 7989 Columbia Road, Olmsted Falls ID: 26-2147968
High Point Marathon Ltd. 7411 State Road, Parma ID: 41-2236231 Date filed: Jan. 4, 2013 Date released: Dec. 30, 2013 Type: Employer’s withholding, unemployment Amount: $24,536 La Barberia Inc. 12115 Mayfield Road, Cleveland ID: 34-1883060 Date filed: Aug. 1, 2012 Date released: Dec. 31, 2013 Type: Employer’s withholding Amount: $6,127
Neurosurgical Specialists PC 6900 Ridge Road, Suite 202, Parma ID: 20-3135540 Date filed: Dec. 31, 2013 Type: Employer’s withholding, unemployment Amount: $251,091 Quality Data Management Inc. P.O. Box 470417, Broadview Heights ID: 34-1839449 Date filed: Dec. 31, 2013 Type: Employer’s withholding Amount: $109,366 Assured Land Title Inc. 50 Public Square, Suite 1600, Cleveland ID: 04-3794906 Date filed: Dec. 30, 2013 Type: Employer’s withholding, unemployment Amount: $83,511 Tyler Disposal Inc. P.O. Box 30141, Middleburg Heights ID: 34-1887631 Date filed: Dec. 31, 2013 Type: Employer’s withholding, corporate income Amount: $45,403 Loves Transporting Services Inc. 12909 Woodside Ave., Cleveland ID: 34-1907751 Date filed: Dec. 30, 2013 Type: Employer’s withholding Amount: $20,310 Security Management Group Inc. 6433 Gale Drive, Seven Hills ID: 26-3798129 Date filed: Dec. 31, 2013 Type: Employer’s withholding Amount: $17,311 Hyatt Racing Services Inc. 4448 Lamar Court, Richmond Heights ID: 34-1698499 Date filed: Dec. 31, 2013 Type: Employer’s withholding, corporate income Amount: $13,021
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Georgia D Petty Inc. 783 Edgewood Road, Cleveland ID: 31-1566154 Date filed: Dec. 31, 2013 Type: Employer’s withholding, unemployment, corporate income Amount: $12,797 KB&F Inc. 942 Royal Road, Cleveland ID: 20-0955658 Date filed: Dec. 30, 2013 Type: Employer’s withholding, unemployment Amount: $10,830 Market One Communications LLC 23945 Mercantile Road, Suite D, Beachwood ID: 30-0008369 Date filed: Dec. 30, 2013 Type: Employer’s withholding, unemployment
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FEBRUARY 17 - 23, 2014
Manufacturers tackle skills gap The need for trained workers in manufacturing jobs has driven some companies to embrace new programs By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
The skills gap in manufacturing isn’t going away, which is why internship and externship programs and even apprenticeships in which traditional classroom work takes place online are becoming more prevalent among manufacturing companies and organizations in Northeast Ohio. The gap created by manufacturers hungry for skilled help and the retirements of older skilled workers is only becoming wider, say observers who include Judith Crocker, director of work force and talent development at manufacturing assistance group Magnet in Cleveland. “The problem is escalating,” Crocker said. So, manufacturers are taking matters into their own hands. For instance, five manufacturing companies have signed on to take part in the adult internship program at Auburn Career Center in Concord Township, which began three years ago with just Latrobe, Pa.-based tooling, advanced materials and engineering company Kennametal Inc. “I think they’re really feeling that they need to do something they haven’t been doing before,” said Michelle Rodewald, business partnership coordinator, of the companies that now are offering internships to Auburn’s adult students.
Rodewald said in an email that Auburn receives calls every day from manufacturing companies that are interested in adult or high school interns. The problem is, there just aren’t enough students to fill the companies’ needs, she said. Tim Arthur, a manager on the plant floor at Kennametal in Solon, said one benefit of participating in an internship program is that the company is basically “interviewing them (the students) for eight weeks.” The extended look goes beyond words on a resume and helps evaluate a student’s work ethic and aptitude, Arthur said. As for Magnet, the organization is looking to connect companies and schools that want to start their own internship or summer study programs. Magnet last year offered a “workbased learning” program that connected manufacturers with students for structured summer jobs and has started to create an internal guide for Magnet and the schools and businesses involved, Crocker said. The guide, which is still evolving, outlines the benefits of the program to all parties, including parents, as well as the roles and responsibilities of each. It also includes sample handouts for project work logs and activities such as job shadowing.
A different summer break Other programs, such as the paid externship for high school teachers at Lake County Educational Service Center, are trying to provide high school classrooms with more knowledge of what goes on in a modern factory. Last year was the pilot for the project, which matched up a teacher from Fairport Harbor schools and Eastlake-based Astro Manufacturing & Design during summer break. Jovette Hiltunen, director of P-16/STEM at the service center, said most teachers go straight from college to teaching with no work force experience in between. This program is designed to help acquaint them with manufacturers’ expectations, and the center is looking to expand it. Russ Messer, the high school physics and chemistry teacher who took part in the pilot program, said the experience helped refresh his knowledge of the manufacturing process, even though he had worked in industrial research and manufacturing before deciding to teach. “There are huge differences between the education system and manufacturing,” Messer said. Messer spent about six weeks at Astro, observing manufacturing processes and writing work instructions for the company about those processes. He said he has been able
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to use the experience to show his students why their classes matter in the working world, whether it’s illustrating how they could apply mathematics lessons to the workplace or stressing the importance of following instructions. Rich Peterson, community and public relations representative at Astro, said the more closely schools are tied to the workplace, the more the skills are taught that will match up with needs. “It’s a real eye-opener for them,” Peterson said. Peterson said he has seen more traction in work force development programs in recent years. Prior to 2012, there was a lot of planning, but not a lot of action, he said. Peterson said he expects the momentum to continue into 2014. “Companies are getting involved and contributing,” he said.
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The Northeast Ohio Speed-toMarket Accelerator — a 12-county collaboration made up of organizations including colleges, chambers of commerce and tech business incubators — is helping companies accelerate innovation in advanced energy and flexible electronics and identify future needs in the work force. The program is led by Magnet, technology advocacy group NorTech and entrepreneur assistance group Jumpstart Inc., as well as Lorain County Community College. When it comes to the work force component, it’s all about making sure the region is producing the type of employees companies need, said Terri Burges Sandu, executive director of work force development and director of the Entrepreneurship Innovation Institute at Lorain County Community College. When one of NorTech’s cluster companies in the accelerator puts out a posting for a job opening, the team distributes it throughout their network, then tracks the responses to see where applicants are coming from and what skills they have or lack. She said the group also compares those job openings to larger labor market data to look for trends and needs.In Medina County, Automation Tool & Die Inc. is going the traditional route and working to
create an apprenticeship program with the local career center and the University of Akron. Randy Bennett, co-owner and vice president of the Brunswick company, said the goal is to start with creating apprenticeship programs for specialties such as tool and die work, die-setting, welding and operating computer numerical controlled machines in partnership with other area companies. Ideally, he said, students would start with part-time work in their junior year of high school and move into a full apprenticeship after they graduate. Bennett said he thinks the program could pull people from Medina County and further south. Automation Tool & Die has been growing and now has 72 employees. But human resources manager Jennifer Compton said the company easily could grow another 10% if it had candidates with the right skills and work ethic. The company’s goal is to have an apprenticeship program in place for the next school year.
Embracing the web Trec Industries Inc. in Brooklyn Heights has maintained an apprenticeship program for about 25 years, but the company is trying something a bit different this year, said president Jim Trecokas. Of the precision machining company’s four apprentices, three are participating in the traditional program with Cuyahoga Community College, while one is taking courses online through the National Tooling and Machining Association’s NTMA-U. Trecokas said he’s trying to adapt to younger students that prefer online training, and he thinks it will let students work at their own pace. Michael Hoag, vice president for work force development at manufacturing support group Wire-Net, said he’s interested in some developing trends in training that focus more on competency than on time spent in the classroom. Focusing on competency could help employers and employees accelerate the pathways to jobs, he said, highlighting NTMA’s online course as an example. “We’re really excited about that,” Hoag said. ■
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Partnership; Women’s Foodservice Forum; Young Presidents’ Organization; Northern Ohio District Export Council (governor-appointed member); Culinary Institute of America In the news: While an expansion of the company’s headquarters in Olmsted Township nears completion, the company also has expanded into nearby Strongsville with a 175,000-square-foot operations center and a 45,000square-foot customer contact center.
DAVID ABBOTT
ANTHONY J. ALEXANDER
Executive director The George Gund Foundation Cleveland Age: 61 Type of organization: Nonprofit foundation Involvement: Fund for Our Economic Future; Regional Competitiveness Council In the news: Abbott and Timken Co. chairman Ward J. “Tim” Timken Jr. late last year became interim co-chairmen of the Regional Competitiveness Council, which is working to develop an economic competitiveness strategy for Northeast Ohio. They succeeded former Alcoa executive William Christopher, who had led the council since its inception.
President, CEO FirstEnergy Corp. Akron Age: 62 Type of organization: Electric utility Involvement: Edison Electric Institute; Institute of Nuclear Power Operations; Austen BioInnovation Institute in Akron; Akron Tomorrow; Team NEO In the news: Last November, FirstEnergy announced a $2.8 billion expansion of its Energizing the Future transmission Initiative, designed to enhance service reliability for customers. Alexander also was named as an advisory trustee of the University of Akron in August.
MONTE AHUJA Chairman, CEO MURA Holdings LLC Beachwood Age: 67 Type of organization: Investment company Involvement: BioEnterprise Corp.; University Hospitals; Naples (Fla.) Children & Education Foundation In the news: Although Ahuja’s family investment company, MURA Holdings, has existed since 2009, Crain’s reported last November that its search for investments took off when Neil Sethi — Ahuja’s son-in-law — joined the business in August.
VIRGINIA ALBANESE President, CEO FedEx Custom Critical Green Age: 50 Type of organization: Expedited freight transportation Involvement: Akron Community Foundation; Akron Chamber of Commerce; Boys and Girls Clubs of the Western Reserve; Greater Akron Chamber of Commerce; Kent State University In the news: Ms. Albanese was appointed by Gov. John Kasich in 2013 to the Kent State University board of trustees.
WARREN ANDERSON* President Anderson-DuBose Co. Lordstown Age: 61 Type of organization: Distributor to McDonald’s and Chipotle restaurants Involvement: Bluecoats Inc.; PlayhouseSquare Foundation; The Presidents’ Council; World Presidents’ Organization In the news: Last spring, Mr. Anderson’s company bought from Golden State Foods a distribution center in Rochester, N.Y., that supplies McDonald’s restaurants throughout the western half of New York, thereby increasing the number of restaurants it serves to 760 from 540.
ARTHUR F. ANTON President, CEO Swagelok Co. Solon Age: 56 Type of organization: Producer of industrial valves and fittings Involvement: Forest City Enterprises Inc.; Olympic Steel Inc.; SherwinWilliams Co.; University Hospitals In the news: In Swagelok’s last employee survey, 93% of associates stated that they “are willing to work above and beyond to help the
company succeed,” a result Mr. Anton attributes to the company’s valuesbased culture and customer-focused orientation.
HARRIET APPLEGATE Executive secretary North Shore AFL-CIO Federation of Labor Cleveland Age: 65 Type of organization: Federation of labor unions Involvement: City Club of Cleveland; Community Partnership for Arts & Culture; United Way of Greater Cleveland; Policy Matters Ohio; Economic Development Commission of Cuyahoga County In the news: She was among those cited in November for blocking a Cleveland intersection to protest immigration reform delays by Republicans, according to The Plain Dealer. She also organized rallies on behalf of federal workers last fall protesting the government shutdown.
REBECCA O. BAGLEY President, CEO NorTech Cleveland Age: 41 Type of organization: Technology-focused economic development organization Involvement: BioHio Research Park; Cleveland Water Alliance; Department of Commerce Innovation Advisory Board; State Science Technology Institute; Team NEO In the news: Bagley has been appointed to the manufacturing commission of the University of Virginia’s Howard P. Milstein Symposium, a five-year initiative advancing innovative, action-oriented ideas to help rebuild the American Dream.
JODI BERG President, CEO Vita-Mix Corp. Olmsted Township Age: 48 Type of organization: Producer of high-end blenders Involvement: Greater Cleveland
JULIE BOLAND*
President Cleveland State University Cleveland Age: 66 Type of organization: Higher education Involvement: BioEnterprise Corp.; Greater Cleveland Partnership; Positively Cleveland; Rock and Roll Hall of Fame and Museum; United Way of Greater Cleveland In the news: Berkman, whose five-year tenure at Cleveland State has been marked by record-setting freshman classes and a $500 million campus makeover, received a contract extension last year that will keep him at the university until 2017.
East Central Region Energy Market Segment Leader Ernst & Young LLP Cleveland Age: 47 Type of organization: Assurance, tax, transaction and advisory services Involvement: Achievement Centers for Children; Great Lakes Science Center; Positively Cleveland; Downtown Cleveland Alliance; In Counsel with Women In the news: Boland has been named Ernst & Young’s next Cleveland leader. She will become the local managing partner on July 1, 2014, when Lee Thomas retires after 38 years of service.
DANIEL E. BERRY
DR. AKRAM BOUTROS*
President, CEO Manufacturing Advocacy & Growth Network (MAGNET) Cleveland Age: 65 Type of organization: Economic development nonprofit focused on manufacturing Involvement: Cleveland-Cuyahoga County Workforce Investment Board; Ohio Manufacturing Extension Partnership; Vocational Guidance Services; Regional Economic Competitiveness Strategy; Society of Manufacturing Engineers In the news: Berry has focused on retooling MAGNET’s capabilities and forging new partnerships. The goal is to accelerate manufacturing growth through innovation and to develop a skilled work force for the region’s manufacturing sector.
President, CEO The MetroHealth System Cleveland Age: 52 Type of organization: Health care Involvement: American College of Healthcare Executives; American Heart Association; Greater Cleveland Partnership; St. Dominic High School In the news: In the top spot at Metro since only June, Boutros already has made his mark on remaking the organization. He has reworked the health system’s administrative bonus structure, launched an initiative aimed at improving patient experience and taken a hard look at its books. “Most public health systems in the nation are severely criticized for their bureaucracy, their clinical outcomes, their poor service and are usually financially weak,” he told Crain’s in August. “What are we going to be known for? Just the opposite.”
RONALD M. BERKMAN
* indicates new to the list; illustrations by Scott Pollack
under a consent decree that forced the company to stop production at its Taylor Street plant and shut down some product design activities at its Elyria headquarters. Since then, Invacare has been working to revamp its quality control processes. As recently as December, however, the company had not yet passed a third-party audit.
FRED BIDWELL* Interim director Cleveland Museum of Art Cleveland Age: 61 Type of organization: Fine arts organization Involvement: Fred and Laura Ruth Bidwell Foundation; Akron Art Museum In the news: Bidwell was appointed interim director of the Cleveland Museum of Art in October 2013 after the abrupt resignation of former director David Franklin. He now is guiding the museum through the inaugural year of its completed, $350 million renovation and expansion while it conducts a worldwide search for its next director.
GERALD BLOUCH* President, CEO Invacare Corp. Elyria Age: 67 Type of organization: Home health care manufacturer Involvement: Executive adviser to private companies In the news: The past year has been a rocky one for the Elyria company headed by Blouch. In 2012, the U.S. Food & Drug Administration put Invacare
SHERROD BROWN Senator, Democrat U.S. Senate Washington, D.C.; Cleveland Age: 61 Type of organization: Government Involvement: Boy Scouts of America; Planned Parenthood; NAACP; Urban League; and Gallaudet University, Washington, D.C. (federally chartered university for the deaf and hard of hearing). In the news: Brown — who moved his residence from Cleveland to Avon — defeated Republican state Treasurer Josh Mandel in November 2012 to win his second term in the U.S. Senate. Brown has continued to push for the end of ‘too-big-to-fail’ policies for financial institutions and voted in favor of the $1 trillion farm bill. He also has promoted passage of the Working Families Tax Relief Act, which makes permanent the provisions of the American Taxpayer Relief Act and strengthens and expands the eligibility of the Earned Income Tax Credit. continued on PAGE P-2
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JOSEPH CALABRESE CEO, general manager Greater Cleveland Regional Transit Authority Cleveland Age: 61 Type of organization: Public transportation Involvement: Downtown Cleveland Alliance; Build Up Greater Cleveland; Senior Transportation Connection; Northeast Ohio Sustainable Communities Consortium; Cleveland/Cuyahoga County Workforce Investment Board In the news: After years of declining ridership — the result of the recession and service cutbacks — ridership is up and the Greater Cleveland Regional Transit Authority is looking to grow even more with service extensions and the rebuilding of older transit stations. The Euclid Avenue HealthLine continues to earn plaudits nationally. Indeed, the GCRTA is trying to replicate the project on the West Side with the $20 million “West Shore Express,” which is replacing the 55 bus route along Clifton Avenue and beyond to Westlake.
DAR CALDWELL, TODD GOLDSTEIN, SAM KRICHEVSKY Partners LaunchHouse Shaker Heights
Caldwell
Goldstein
Ages: Caldwell, 32; Goldstein, 31; Krichevsky, 31 Type of organization: Business incubator/accelerator Involvement: Caldwell (director Krichevsky of entrepreneurship) — Ohio Homecoming, Ingenuity Festival, Economic and Community Development Institute of Cleveland, Bad Girl Ventures, Makers Alliance; Goldstein (CEO) — Young Leadership Division of Jewish Federation of
Cleveland, Cleveland Hillel Foundation, Mensch Capital, Knowta; Krichevsky (COO) — TanZ Entertainment, Forward City, Young Leadership Division of the Jewish Federation of Cleveland, Waxman Chabad Center In the news: As of November 2013, five of the 11 startups going through the LaunchHouse Accelerator had been based in other cities. Plus, it had received applications from Spain, France, Singapore and Azerbaijan. The incubator also recently worked with Shaker Heights to renovate a few rundown houses on a nearby street, which already house a few out-of-town entrepreneurs and were expected to help the accelerator attract more. Additionally, a makeover at the Fairmont Creamery in Tremont has been mentioned as a possible second home for LaunchHouse. (However, a fire broke out last month on the third floor of the creamery.)
RICK CHIRICOSTA* Chairman, president, CEO Medical Mutual of Ohio Cleveland Age: 57 Type of organization: Insurance Involvement: 50 Club; Greater Cleveland Partnership; Cuyahoga Community College Foundation; United Way of Greater Cleveland; Kidney Foundation of Ohio In the news: Talk about being in the eye of the storm. Medical Mutual is on the front lines when it comes to health care reform and its effects on insurance. Additionally, MetroHealth last year selected Medical Mutual as the third-party administrator that will manage its Medicaid waiver program. Under the program, MetroHealth will use its $36 million annual subsidy from the county to draw an additional $64 million annually from the federal government to provide health care for about 20,000 people living in Cuyahoga County.
ROY A. CHURCH President Lorain County Community College Elyria Age: 67 Type of organization: Higher education Involvement: Manufacturing Extension Partnership; Regional
POWER 150 Competitiveness Council; Team NEO; Northeast Ohio Council on Higher Education; NorTech In the news: Voters this fall narrowly approved a levy to generate $12 million annually for college. Additionally, the school’s board of trustees recently voted to increase tuition by $3.84 per credit hour, beginning this summer.“While we are not happy to seek this increase, no matter how modest it may be, it is necessary in order to maintain quality of educational programs and services to help students gain the skills and education they need to succeed in careers,” Church was quoted as saying in The (Elyria) Chronicle-Telegram.
PAUL CLARK Regional President, Cleveland PNC Financial Services Group Cleveland Age: 60 Type of organization: Banking Involvement: Team NEO; Neighborhood Progress Inc.; United Way of Greater Cleveland; University Hospitals Health System; Cleveland Orchestra In the news: In addition to leading PNC’s local operations, Clark took over as chairman of the Team NEO board last year. At the time, Mr. Clark said it is “an exciting time to step up my involvement with the region’s development and growth. I am committed to carrying on Tim’s (Timken) legacy of inspiring leadership and encouraging the regional collaboration that is vital to Northeast Ohio’s economic prosperity.”
DANIEL C. COLANTONE President, CEO Greater Akron Chamber Akron Age: 57 Type of organization: Chamber of commerce Involvement: Akron Tomorrow; Leadership Akron; Team NEO; Summit Education Initiative; American Chamber of Commerce Executives In the news: Colantone was among the Akron-area leaders to travel to Omaha, Neb., last year to discuss best practices. According to a story in The Akron Beacon Journal, the Omaha chamber has a similar strategy as the Greater Akron Chamber, which recently completed a five-year economic strategy plan and is about to start another five-year plan focused public-private partnerships, talent and innovation.
LONNIE COLEMAN* President Coleman Spohn Corp. Cleveland Age: 65 Type of organization: Mechanical contracting company Involvement: Presidents’ Council; Greater Cleveland Partnership; U.S. Department of Labor Advisory Committee on Apprenticeship; Team NEO; Mechanical Contractors Association of America In the news: In the past, Coleman’s firm has been involved in the construction of many of the landmark facilities around Cleveland, including the Rock and Roll Hall of Fame, Progressive
FEBRUARY 17 - 23, 2014
Field, Quicken Loans Arena, Key Tower and FirstEnergy Stadium. So it should be no surprise his firm was involved with the latest change to the city’s skyline, installing the mechanical systems for Ernst & Young Tower, according to the publication Contracting Business.
JOHN P. COLM President, executive director WIRE-Net Cleveland Age: 60 Type of organization: Manufacturing advocacy group Involvement: Cleveland Citywide Development Corp.; Friends of Max Hayes; International Economic Development Council; Sustainable Cleveland Stewardship Council In the news: Colm works as a champion for Northeast Ohio’s manufacturing community, focusing on everything from encouraging students to enter the field to the creation of a competitive sector. For example, WIRE-Net last year surveyed manufacturers regarding energy-related work: “It shows that the future of American manufacturing is really tightly intertwined with American energy and American clean energy,” he said. “For those concerned about jobs in the gas industry, this is not a bunch of projections from think tanks in Cleveland or Columbus. It’s real.”
Department of Labor settlement related to the company’s employee stock ownership plan.
WILLIAM CONSIDINE President, CEO Akron Children’s Hospital Akron Age: 66 Type of organization: Health care Involvement: Knight Foundation; Ohio Business Roundtable; American College of Healthcare Executives; Akron Tomorrow; Austen BioInnovation Institute in Akron In the news: Akron Children’s Hospital is in the midst of a $200 million plan to improve its campus. “It’s a wonderful investment in our children. It’s a wonderful investment in their future, and it builds on what has been playing out over the last 122 years,” Considine said last summer. This month, Akron Children’s also received a five-year, $400,000 grant from the Ohio Department of Health to help fund a traumatic brain injury prevention program.
C. ELLEN CONNALLY President Cuyahoga County Council Cleveland Age: 69 Type of organization: Government Involvement: Breast Cancer Fund of Ohio; Community Action Against Addiction; Cleveland Civil War Roundtable; Ohio Historical Society; Cleveland State University Foundation In the news: Connally, whose term ends in December, announced in January that she would not seek re-election. “I am fortunate to have served many years as a public official. Now I plan to retire to my books and lectures,” she said at the time. One of the big recent issues taken up by the county council has been an extension of the sin tax; council has voted to put it on the May 6 ballot.
CHRIS CONNOR Chairman, CEO The Sherwin-Williams Company Cleveland Age: 57 Type of organization: Paint maker Involvement: Eaton Corp.; Federal Reserve Bank of Cleveland; Greater Cleveland Partnership; Fisher College of Business, Ohio State University; University Hospitals Health System In the news: Sherwin-Williams has for more than a year been trying to acquire the operations in Mexico of Mexican paint maker Consorcio Comex in a $2.3 billion deal. However, it so far has been denied approval by the Mexican government. Early this year, the company reported a big increase in fourth-quarter earnings compared to its year-earlier profits, which were pulled down by a U.S.
PATRICK AND DANIEL CONWAY Co-owners Great Lakes Brewing Co. Cleveland Age: Patrick, 64; Daniel, 51 Type of organization: Restaurant, brewery Involvement: A variety of environmental and social organizations in Northeast Ohio In the news: Great Lakes Brewing marked its 25th anniversary in September with a big block party in its Ohio City neighborhood. And here’s something else to celebrate: The Buckeye State ranked No. 4 in the United States in craft beer production in 2012, at about 981,000 barrels, according to the Brewers Association. Aside from Cincinnati’s Sam Adams operation, Great Lakes Brewing commands the state’s craft beer production, at about 145,000 barrels per year.
DR. DELOS ‘TOBY’ COSGROVE President, CEO Cleveland Clinic Cleveland Age: 73 Type of organization: Health care Involvement: Cuyahoga Community College In the news: Nearly 700 Clinic employees have accepted early retirement offers, which are part of the health system’s ongoing effort announced last September to trim $330 million from its budget. Cosgrove also published a book, “The Cleveland Clinic Way,” that looks at the future of health care, and he became a leading national authority on the impact of Obamacare on the health care system. continued on PAGE P-3
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JIM COSSLER CEO Youngstown Business Incubator Youngstown Age: 58 Type of organization: Economic development Involvement: Kent State University; University of Akron; Hiram College; Youngstown State University In the news: Youngstown Business Incubator is working to form a fund that would invest in young tech companies in the Mahoning Valley and surrounding areas, including Cleveland and Pittsburgh. “If we’ve got a really hot startup that’s in Bay Village or Westlake, that’s close enough,” Cossler told Crain’s last fall.
ED CRAWFORD Chairman, CEO Park-Ohio Holdings Corp. Mayfield Heights Age: N/A Type of organization: Manufacturing Involvement: Irish Garden Club, Cleveland Cultural Gardens; Bluecoats Inc.; The 50 Club of Cleveland; Cuyahoga County Republican Party; Greater Cleveland Sports Hall of Fame In the news: Last November, ParkOhio acquired for an undisclosed price Henry Halstead Ltd., a provider of supply chain management services headquartered in Preston, England. In
addition, Park-Ohio bought QEF Global Limited, a provider of supply chain management services headquartered in Cork, Ireland.
ALEXANDER ‘SANDY’ CUTLER Chairman, CEO Eaton Corp. Beachwood Age: 62 Type of organization: Manufacturing Involvement: Greater Cleveland Partnership; United Way of Greater Cleveland; Musical Arts Association; Business Roundtable; The Business Council In the news: In announcing strong fourth-quarter results for Eaton, Cutler said the company’s integration of Cooper Industries, which it acquired in late 2012, “remains well ahead of schedule, setting a solid foundation for the $95 million of additional Cooper integration savings we expect to realize in 2014.” He also has been a vocal CEO on dysfunction in Washington, D.C., telling CNBC, for instance, “The rest of the world is moving forward, but they’ve got significant questions about our country and our ability to really convert the promise of democracy into the promise of strong economic growth.”
A. RAY DALTON President, CEO PartsSource Inc. Aurora Age: 57 Type of organization: Medical parts
supplier Involvement: Dalton Foundation; Hospital Shalom, Peten, Guatemala; Mission of Hope Haiti; Conservancy for Cuyahoga Valley National Park In the news: PartsSource in 2013 added a major player — Siemens Healthcare — to its OEMDirect supplier program. This month, it expanded the relationship through the addition of angiography and MRI replacement parts to OEMDirect.
JENNIFFER DECKARD* CEO Fairmount Minerals Inc. Chardon Age: 48 Type of organization: Producer of industrial sand Involvement: Federal Reserve Bank of Cleveland’s Business Advisory Council; Weatherhead School of Management’s Visiting Committee; Greater Cleveland Partnership; Chardon Healing Fund; First Tee of Cleveland In the news: After serving as president of Fairmount for two years, Deckard last May was named CEO, succeeding longtime chief executive Chuck Fowler. Less than a month later, Fairmount’s Santrol unit acquired a major operation from Northern White Sand Mine in Minnesota.
CRAIN’S CLEVELAND BUSINESS P-3
STEVEN M. DETTELBACH U.S. Attorney for the Northern District of Ohio U.S. Justice Department Cleveland Age: 48 Type of organization: Government Involvement: None, to prevent conflicts of interest In the news: Dettelbach and others in his office are untangling the web of activities that led to the collapse of the Taupa Lithuanian Credit Union in Cleveland. Alex Spirikaitis, the former CEO of Taupa, is charged with embezzling about $4.2 million from Taupa between 2001 and 2013. When Taupa collapsed last July, it had about 1,150 members and $24 million in assets, making it one of the largest credit union defaults on record.
FRANK L. DOUGLAS President and CEO Austen BioInnovation Institute in Akron Akron Age: 70 Type of organization: Economic development/health care Involvement: Ewing Marion Kauffman Foundation; Value-driven Engineering and U.S. Global Competitiveness initiative; Battelle Memorial Institute; National Center for Advancing
Translational Sciences; BioOhio In the news: Austen BioInnovation launched an effort to attract university, hospital and industry partners from outside the Akron area who might be interested in tapping into its expertise. To that end, the organization forged new partnerships with St. Vincent Charity Medical Center in Cleveland and Lorain County Community College.
ART J. FALCO President, CEO PlayhouseSquare Foundation Cleveland Age: 60 Type of organization: Arts and culture Involvement: Tony Award voter and member of the Broadway League; Downtown Cleveland Alliance; Positively Cleveland; The Union Club; PlayhouseSquare District Development Corp. In the news: Falco received the Cleveland Foundation’s 2013 Homer C. Wadsworth Award, given annually to a local leader “who has demonstrated creativity, innovation, ingenuity, risk-taking and good humor in a civic, volunteer, nonprofit or publicsector role.” This spring, PlayhouseSquare will unveil the GE Chandelier, which it says will be the world’s largest, permanent outdoor chandelier, as part of an extensive makeover of outdoor features that includes new video signage. continued on PAGE P-4
Congratulations to our very own Rick Chiricosta for being recognized as one of Northeast Ohio’s Power 150.
Ohio’s Health Insurance Choice Since 1934
MedMutual.com
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UMBERTO P. FEDELI
JOSE FELICIANO
President, CEO The Fedeli Group Independence Age: 53 Type of organization: Insurance Involvement: Cleveland Clinic Foundation; John Carroll University; Cleveland Catholic Diocese Foundation; Northern Ohio Italian American Foundation; Legatus (an international organization of Catholic CEOs) In the news: The Fedeli Group last year became a shareholder in The DLK Group, a surety bonding agency in Stow that was renamed Fedeli Liptak & Keller. It was the first such arrangement for Fedeli Group and could serve as a model for bringing in other specialists, Fedeli told Crain’s last year.
Founder, chairman; Hispanic Roundtable Partner; BakerHostetler Cleveland Age: 63 Type of organization: Nonprofit; law firm Involvement: Greater Cleveland Partnership; Commission on Economic Inclusion; U.S. District Court for the Northern District of Ohio; House of Delegates, American Bar Association In the news: Feliciano and Frank Douglas, president and CEO of the Austen BioInnovation Institute in Akron, represented Northeast Ohio on an independent task force that analyzed the role of immigration in growing the Midwest economy. The report also stressed the importance of federal immigration policy reform.
SARI FELDMAN* Executive director Cuyahoga County Public Library Parma Age: 60 Type of organization: Public library Involvement: Cuyahoga Arts and Culture; ClevelandCuyahoga County Workforce Investment Board; In Counsel with Women; OneCommunity; American Library Association Digital Content and Libraries Working Group In the news: Cuyahoga County Public Library once again received a five-star rating — the highest possible — in the Library Journal Star Libraries rankings.
JOHN FERCHILL* Chairman, CEO The Ferchill Group Cleveland Age: 72 Type of organization: Real estate Involvement: Downtown Cleveland Alliance; St. Edward High School; Downtown Cleveland Improvement Corp.; The Jennifer Ferchill Children’s Foundation In the news: In September, Ferchill told Crain’s he was offering for sale the Western Reserve Building and Annex, 1468 W. Ninth St., an office complex of 140,000 square feet that combines
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POWER 150 two buildings. The national developer said he is not pursuing projects in Cleveland and is busy elsewhere.
November of a renewal levy. The 0.13mill tax levy provides about one-third of the authority’s $7.3 million budget.
GARY FINGERHUT*
MARCIA FUDGE
Executive director Cleveland Clinic Innovations Cleveland Age: 53 Type of organization: Technology transfer office Involvement: ImageIQ; Enforcer; Talis; iVHR; HealthXL In the news: Fingerhut was named acting executive director of Cleveland Clinic Innovations in April. On Nov. 1, he was given the more permanent title for the health care giant’s commercialization arm.
U.S. representative, Democrat, 11th district U.S. House of Representatives Cleveland Age: 61 Type of organization: Government Involvement: Delta Sigma Theta Sorority, Social Action Commission; Delta Sigma Theta Greater Cleveland Alumnae Chapter In the news: Fudge, chairwoman of the Congressional Black Caucus, has pushed hard for women’s rights. A key focus has been equal pay for women in the work force. “We can’t continue to have more than 51% of the people who live in this country, as well as 54% of the people who vote in this country, continue to be underpaid,” she told Crain’s in 2013.
ED FITZGERALD County executive Cuyahoga County Cleveland Age: 45 Type of organization: Government Involvement: County Executives of America; Economic Development Commission of Cuyahoga County; Northeast Ohio Areawide Coordinating Agency; Investment Advisory Committee, Cuyahoga County; Criminal Justice Services Governing Board, Cuyahoga County In the news: FitzGerald recently selected Dayton-area attorney Sharen Neuhardt in his do-over in selecting a running mate for Ohio governor. FitzGerald’s original choice, state Sen. Eric Kearney, withdrew from the ticket in December, following intense media coverage over tax debts.
JAMES FREE* Director NASA Glenn Research Center Brook Park Age: 45 Type of organization: Government Involvement: Great Lakes Science Center; Greater Cleveland Partnership; NorTech; SpaceTech Advisory Board In the news: Free replaced Ramon Lugo III as NASA Glenn’s director at the start of 2013. Free, who joined NASA in 1990, had been deputy director of NASA Glenn since November of 2010.
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FEBRUARY 17 - 23, 2014
President, CEO Cleveland-Cuyahoga County Port Authority Cleveland Age: 52 Type of organization: Port authority Involvement: American Association of Port Authorities; American Great Lakes Ports Association; Northeast Ohio Development Fund; Northeast Ohio Areawide Coordinating Agency; Cuyahoga County Economic Development Commission; Green Marine In the news: In October, the Port Authority announced that its plan to bring a new international freight service to the Port of Cleveland was being warmly received by several key players in the local import/export community. Friedman said the service will begin this spring. The port also won approval in
HIROYUKI FUJITA Founder, president, CEO Quality Electrodynamics LLC Mayfield Village Age: 47 Type of organization: Medical device designer, manufacturer Involvement: Manufacturing Council, U.S. Deputy Secretary of Commerce; Local Leadership Council, Business Forward; Cleveland Orchestra; The Cleveland Foundation; Hillcrest Hospital In the news: Last March, Fujita was one of three Northeast Ohio manufacturers named to the Manufacturing Council, a private-sector committee that directly advises the U.S. Secretary of Commerce. In May, the company was among those awarded the President’s “E” Award for Exports, the highest recognition any U.S. entity may receive for making a significant contribution to the expansion of U.S. exports.
STUART GARSON Founder, managing partner, Garson & Associates Co. LPA Chairman, Democratic Party, Cuyahoga County
Cleveland Age: 64 Type of organization: Law firm; political party Involvement: American Association for Justice; Ohio Association for Justice; Ohio Association of Claimants’ Counsel; Cleveland Metropolitan Bar Association; The Park Synagogue In the news: Garson and fellow attorney James DeRoche represented a group of more than 270,000 Ohio employers who, according to a Cuyahoga County judge’s March 2013 ruling, are entitled to $859 million in premium overpayments from the Ohio Bureau of Workers’ Compensation. This summer, Garson received the Ohio Democratic Party Large County Chair Award given for outstanding service on behalf of Democrats in Ohio, according to The Cleveland Jewish News, which also noted that under Garson’s leadership, Cuyahoga County produced the nation’s second-largest margin of victory for President Barack Obama in a battleground state.
FRED AND GREG GEIS Co-owners, Geis Development Co. Members, Hemingway Development Inc. Streetsboro Age: Fred, 55; Greg, 46 Type of organization: Real estate Involvement: Fred Geis — Downtown Cleveland Alliance; MidTown Cleveland Inc.; Cleveland Botanical Garden; Rainey Institute; The Edwin and Katherine Geis Charitable Foundation; Society of Industrial and Office Realtors; Greg Geis — National Association of Office and Industrial Properties In the news: In less than a year, Geis Cos. took the Ameritrust complex, which includes a 29-story office tower that had stood empty for two decades, and began reshaping it as a $250 million real estate development project. A Heinen’s grocery store is planned for the complex’s landmark rotunda. continued on PAGE P-5
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DR. JAY A. GERSHEN President Northeast Ohio Medical University Rootstown Age: 67 Type of organization: Higher education Involvement: Greater Akron Chamber; Ohio Chamber of Commerce; NorTech; Greater Cleveland Partnership; Canton Regional Chamber of Commerce In the news: Last May, NEOMED announced it had formed a partnership with Miami University in Oxford. The announcement occurred two months after the institution signed an agreement with Hiram College in which the two Portage County-based institutions said they will work together to produce new physicians. Additionally, Cleveland State University broke ground on a $45 million health sciences building that’s expected to open in June 2015. The 100,000-square-foot building will house CSU programs offered by the School of Nursing and the School of Health Sciences, as well as the Cleveland cohort of Northeast Ohio Medical University programs within NEOMED’s College of Medicine, College of Pharmacy and College of Graduate Studies.
DAN GILBERT Owner, Cleveland Cavaliers Chairman, Rock Ventures LLC Cleveland Age: 52 Type of organization: Basketball team, casino Involvement: Bizdom; Cleveland Clinic; Children’s National Medical Center; Children’s Tumor Foundation; M-1 Rail In the news: On Jan. 21, Quicken Loans received a lot of attention by announcing it would give away $1 billion to anyone who could fill out a perfect March Madness bracket. Sixteen days later, Gilbert’s disappointing basketball team fired its general manager, Chris Grant.
DAVID E. GILBERT President, CEO Greater Cleveland Sports Commission; Positively Cleveland Cleveland Age: 46 Type of organization: Civic and economic development Involvement: Rock and Roll Hall of Fame and Museum; International Children’s Games; Cleveland Film Commission; Group Plan Commission In the news: Last December, Cleveland was selected to host the 2018 NCAA Division I wrestling championships, capping a productive stretch for the sports commission. In 2014, Northeast Ohio will serve as the host of three NCAA championship events and a Web.com Tour golf tournament. Cleveland also recently hosted a women’s Fed Cup tennis match between the United States and Italy.
JOSEPH GINGO CEO, president A. Schulman Inc. Fairlawn Age: 69 Type of organization: Plastic resins supplier Involvement: Akron Tomorrow; University of Akron Foundation; Northeast Ohio Medical University; Portage Lakes
Career Center In the news: A. Schulman was rebuffed in its effort to buy Mayfield Heights-based Ferro Corp. in 2013 but it did spend more than $100 million on two smaller acquisitions. Gingo early this year called M&A deals a “critical” piece of the company’s growth strategy, especially in a less-than-robust economy. The comment was made in relation to the company filling the newly created position of senior director of corporate business development.
MARCIE GOODMAN Executive director Cleveland International Film Festival Cleveland Age: 58 Type of organization: Nonprofit/arts Involvement: Weimaraner Club of America In the news: The film festival announced in January that, with the help of a $500,000 loan from the Gund Foundation, it will convert nine theaters at Tower City Cinemas to digital equipment in time for the 38th film festival that begins March 19. The festival’s attendance in 2013 was 93,235 — a 9.7% increase from a year earlier and a 126% increase from 2003.
PAUL G. GREIG Chairman, president, CEO FirstMerit Corp. Akron Age: 57 Type of organization: Banking Involvement: Federal Reserve System Federal Advisory Council; American Bankers Association; Musical Arts Association; Greater Cleveland Sports Commission; Team NEO In the news: The institution completed its largest acquisition ever in 2013, bringing the 37 Michigan branches of Citizens Republic Bancorp Inc. — and $24.5 billion in assets — into the FirstMerit system. In April, FirstMerit Corp. reported a first-quarter profit 23% higher than the year-ago quarter, and its 56th consecutive quarter of profitability.
BRIAN HALL Executive director Commission on Economic Inclusion Cleveland Age: 56 Type of organization: Nonprofit Involvement: The Presidents Council Foundation
CRAIN’S CLEVELAND BUSINESS P-5 In the news: Hall turned his interim role at the inclusion commission, an arm of the Greater Cleveland Partnership, into a permanent one, though he retains ownership of his logistics firm, Innogistics LLC. In addition, Hall has joined with Executive Caterers to propose a new restaurant on the lakefront.
JAMES L. HAMBRICK Chairman, president, CEO The Lubrizol Corp. Wickliffe Age: 59 Type of organization: Specialty chemical technologies Involvement: American Chemistry Council, American Institute of Chemical Engineers, Cleveland Museum of Natural History, University Hospitals Health System, Hospice of Western Reserve In the news: The company opened a 400,000-square-meter additives manufacturing plant in Zhuhai, Guangdong, China, part of a 10-year phased investment plan to increase global capacity in additives. Hambrick, who traveled to Zhuhai for the opening, said the plant “is further confirmation of our ongoing commitment to the region, to the industry and to our customers’ success.”
HOWARD W. ‘HOBY’ HANNA IV President Howard Hanna Real Estate Services, Midwest Region Cleveland Age: 43 Type of organization: Real estate brokerage Involvement: Trulia; North Coast Community Homes; Cleveland Chapter of Young Presidents’ Organization; The Realty Alliance. In the news: The residential real estate brokerage merged in 2013 with the Chartwell Group, a Cleveland commercial real estate broker. The new operation, Hanna Chartwell, will help Hanna expand its commercial brokerage business.
GARY HANSON* Executive director The Cleveland Orchestra Cleveland Age: 60 Type of organization: Performing arts Involvement: University Circle Inc.; Glenn Gould Foundation U.S.A.; Global Cleveland; Nestle and Salzburg continued on PAGE P-6
ERIC GORDON CEO Cleveland Metropolitan School District Cleveland Age: 43 Type of organization: Education Involvement: Cleveland Rock and Roll Inc.; Council of Great City Schools In the news: After implementing a new “transformation” plan for the city’s schools and convincing voters to increase their school taxes in 2012, the district was one of a number statewide under fire from the state auditor for “scrubbed” student data that might have led to better-than-deserved report cards for the district. In a January Columbus Dispatch article, a spokeswoman for the Cleveland schools said the district “has acknowledged problems in our record-keeping process that have since been addressed. … We do not believe there was any effort to intentionally manipulate our student data.”
ALBERT GREEN CEO Kent Displays Inc. Kent Age: 48 Type of organization: Manufacturing/consumer electronics Involvement: U.S. Commerce Department Manufacturing Council; NorTech; Federal Reserve Bank of Cleveland; Kent State University; Notre Dame College In the news: The company in 2013 quadrupled its manufacturing capacity, enabling the Kent company to expand distribution of its electronic writing tablet, the Boogie Board. In a 2013 Crain’s story, Green said it had even become hard to keep track of all the stores where the Boogie Board was sold. “It’s in the many, many thousands,” he said. “I can’t even tell you the store chains we’re in. ... Every day there’s a new one.”
Congratulations to Huntington Bank region President, Dan Walsh, for being recognized as one of Northeast Ohio’s Power 150! At Huntington, we believe it’s important to do more for the community – whether it’s rolling up our sleeves and getting involved, or helping in other ways. That’s why we’re proud to be recognized amidst so many well-respected leaders who each work tirelessly to make a difference in our community.
Member FDIC. ® and Huntington are federally registered service marks of Huntington Bancshares Incorporated. Huntington. ® Welcome. ™ is a service mark of Huntington Bancshares Incorporated. © 2014 Huntington Bancshares Incorporated.
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P-6 CRAIN’S CLEVELAND BUSINESS Festival Young Conductor Award juror; Ohio Citizens for the Arts In the news: The 96-year-old orchestra has made several changes to attract younger audiences to its Severance Hall home. It began 2014 by unveiling “The Circle,” a membership program for young professionals.
announced it was buying two German companies, a part of a strategy to build the company’s polymer processing business. Last summer, Nordson also said its directors had raised the company’s quarterly cash dividend 20% and have authorized a new, $200 million share repurchase program. “The board’s actions reflect continued confidence in the long-term strength of our company and our ongoing commitment to creating shareholder value,” Hilton said at the time.
STEPHEN H. HOFFMAN*
Nancy and Ron G. Harrington
HARRINGTON FAMILY* Benefactors Harrington Project for Discovery & Development Cleveland Type of organization: Research & development Involvement: University Hospitals Case Medical Center In the news: The Harrington family, which owned and ran Edgepark Medical Supplies, is using its wealth to support research to bring new drug therapies to market. Its Harrington Discovery Institute at UH Case Medical Center made 11 awards of up to $200,000 each to 11 physician scientists in December.
GREG HARRIS* President, CEO Rock and Roll Hall of Fame and Museum Cleveland Age: 48 Type of organization: Nonprofit Involvement: Positively Cleveland; Great Lakes Science Center; Greater Cleveland Sports Commission In the news: Harris took over the top job at the Rock Hall at the start of 2013. Late last year, the museum brought a little bit of Elvis Presley’s Memphis home, Graceland, to the North Coast with the opening of the Elvis Presley collection.
EDWARD W. (NED) HILL Dean, professor Maxine Goodman Levin College of Urban Affairs, Cleveland State University Cleveland Age: 62 Type of organization: Higher education Involvement: National Institute of Standards and Technology; The Brookings Institution Metropolitan Policy Program; University of Rijeka (Croatia) In the news: Hill traveled to China late last year to help the college expand its relationship with Chinese universities. In the fall, students from the South China University of Technology will come to Cleveland to complete a degree in public management at CSU.
MICHAEL HILTON President, CEO Nordson Corp. Westlake Age: 59 Type of organization: Manufacturer Involvement: Nordson Corp. Foundation; United Way In the news: In July, Nordson
President Jewish Federation of Cleveland Cleveland Age: 63 Type of organization: Nonprofit Involvement: Musical Arts Association; Jack, Joseph & Morton Mandel Foundation; David and Inez Myers Foundation; Maltz Foundation; President’s Visiting Committee of Case Western Reserve University In the news: The federation in December sold its former headquarters in downtown Cleveland to the Clayco Realty Group of Chicago, which will tear down the buildings on the site for a 217-unit student apartment building. “We feel good that there is a quality student housing project being proposed,” Hoffman said. “We think it’s good for the neighborhood, it’s good for PlayhouseSquare and it’s good for Cleveland State University.” The former federation building had been studied for multiple uses since the organization in 2009 moved its headquarters to Beachwood.
ANDREA HOGBEN* President Northeast Ohio Media Group Cleveland Age: 41 Type of organization: Media Involvement: Harvest for Hunger Campaign, Greater Cleveland Food Bank; Northeast Ohio Media Group Charities; In Counsel with Women; The 50 Club In the news: After a tumultuous year at the Cleveland daily newspaper and online news provider, Hogben shoulders responsibility for top-line growth. “I will tell you that early metrics at some of our sister markets that have gone through this change are quadrupling the industry average. That is what needs to happen,” she told Crain’s in August.
W. NICHOLAS HOWLEY Chairman, CEO TransDigm Group Cleveland Age: 61 Type of organization: Manufacturer, aircraft parts Involvement: Case Western Reserve University; CPP Corp.; Saint Martin de Porres High School; Rock and Roll Hall of Fame and Museum In the news: TransDigm is active on the acquisition trail and bought four companies last year. The company has increased its guidance in the coming year, Howley said in January, “primarily to reflect the acquisition of Airborne Systems and our first quarter performance.” TransDigm in December bought Airborne, a maker of parachutes and similar products for the defense industry, for $250 million.
POWER 150
FEBRUARY 17 - 23, 2014
DANIEL B. HURWITZ
JOE KANFER
CEO, board member DDR Inc. Beachwood Age: 49 Type of organization: Shopping-centerfocused real estate investment trust Involvement: Sonae Sierra Brasil; General Growth Properties Inc.; International Council of Shopping Centers; Hawken School; Rock and Roll Hall of Fame and Museum In the news: Over the last year, Hurwitz has emerged as a spokesman for the shopping center industry and an expert on retailing trends, most notably through appearances on CNBC and Bloomberg TV.
Chairman, CEO Gojo Industries Inc. Akron Age: 67 Type of organization: Skin health, hygiene products Involvement: StarVest Partners; JFNA/The Jewish Federations of North America; Akron Tomorrow; University of Akron; Austen BioInnovation Institute in Akron In the news: Gojo on Jan. 31 purchased the French company Laboratoires Prodene Klint, a maker of professional hygiene, cosmetics and disinfectant products. At the time, another company executive said that the deal would provide opportunities for learning and positive synergies for both organizations.
FRANK G. JACKSON Mayor City of Cleveland Cleveland Age: 67 Type of organization: Government Involvement: Mayors Against Illegal Guns; U.S. Conference of Mayors In the news: Rather than take a breather after the opening of several megaprojects downtown, Jackson joined with Cuyahoga County Executive Edward FitzGerald last June to set an agenda for improving the city’s mall and lakefront. “This gives us the ability to move Cleveland into the next phase,” the mayor said,
ALEX JOHNSON* President Cuyahoga Community College Cleveland Age: 63 Type of organization: Higher education Involvement: American Association of Community Colleges; National Labor College; Association of American Colleges and Universities; United Way; Greater Cleveland Partnership In the news: Johnson has focused on strengthening Tri-C’s accessibility and affordability since he became its president in time to celebrate the school’s 50th anniversary. He sized up its Corporate College’s status to Crain’s in a November story on its emergence from fiscal woes by saying, “It was a novel idea, and I think its time has finally arrived.”
DAVID JOYCE* U.S. Representative, Republican, 14th District U.S. House of Representatives Russell Township Age: 57 Type of organization: Government Involvement: Geauga County Bluecoats; Fraternal Order of Eagles 2436 In the news: The former Geauga County prosecutor has focused on passing two bills he authored: the SAVE Act, which will cut $200 billion in government spending he considers wasteful; and a Great Lakes bill designed to protect the environmental integrity and economic strength of the Great Lakes.
MARCY KAPTUR* U.S. Representative, Democrat, 9th District U.S. House of Representatives Toledo Age: 67 Type of organization: Government Involvement: Congressional-Executive Commission on China; Congressional Hungarian Caucus; Congressional Ukraine Caucus. In the news: The congresswoman recently has been condemning Ukrainian government violence against protesters seeking more government transparency. The House adopted a resolution Feb. 10 she sought supporting the pro-democratic and Europe-leaning protesters. She recently took the U.S. Army Corps of Engineers to task for not taking the danger Asian carp pose to the Great Lakes as seriously as it should.
LAURA KEPLEY* Artistic director Cleveland Play House Cleveland Age: 42 Type of organization: Performing arts Involvement: N/A In the news: Kepley became interim artistic director in May 2013, following the departure of Michael Bloom, and was promoted to the job on a permanent basis in September. She’s the ninth artistic director in the nearly 100year history of the Play House. Kepley in November directed the Play House’s acclaimed production of “Venus in Fur,” a seductive comedy by playwright David Ives.
ROBERT J. KLONK* CEO Oswald Cos. Cleveland Age: 55 Type of organization: Insurance brokerage Involvement: National Multiple Sclerosis Society; Northeast Ohio Medical University; Council of Insurance Agents & Brokers; Council of Employee Benefits Executives; Business Volunteers Unlimited In the news: Klonk is captaining the brokerage as it buys other companies. He is an industry expert on health care reform, and he said of the new federal
health care law in a November Crain’s article that the law won’t reduce health care costs but “shifts them.”
STEWART A. KOHL Co-CEO The Riverside Co. Cleveland Age: 58 Type of organization: Private equity Involvement: Oberlin College; Museum of Contemporary Art Cleveland; Cleveland Clinic; Cleveland Clinic Wellness Institute Leadership Board In the news: After raising a $1.5 billion fund, the largest in its history, Kohl called it “a very big deal” and told Crain’s Cleveland Business that firms all around “world are competing to attract this capital.” To date, Riverside has raised 14 funds, including funds for investing in Europe and Asia.
RICHARD J. KRAMER Chairman, president, CEO Goodyear Tire & Rubber Co. Akron Age: 50 Type of organization: Manufacturing Involvement: The Sherwin-Williams Co.; John Carroll University; Akron Tomorrow; Greater Akron Chamber of Commerce In the news: Kramer says the company’s new Akron headquarters reflects its dedication to innovation and that he hopes, according to a Crain’s story last May, that Akron may “become known as the innovation city.
MARC C. KRANTZ* Managing partner Kohrman Jackson & Krantz PLL Cleveland Age: 53 Type of organization: Law Involvement: Cleveland-Cuyahoga County Port Authority; Junior Achievement of Greater Cleveland; Bellefaire JCB; Myers Foundation; Wingspan Care Group In the news: Krantz captained the Cleveland-Cuyahoga County Port Authority’s board during its levy campaign last November. He explained the continued on PAGE P-7
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port’s value to the Crain’s editorial board by pointing out it would take a line of semitrailers 4,700 miles long to equal the volume of materials shipped through the port in 2012.
DAVID J. LARUE President, CEO, director Forest City Enterprises Inc. Cleveland Age: 52 Type of organization: Real estate development, ownership and management Involvement: International Council of Shopping Centers; National Association of Real Estate Investment Trusts; Friends of the Cleveland School of the Arts; The Lawrence School In the news: Through a rapid-fire set of dispositions and joint ventures, the company generated about $600 million in liquidity last year to reduce both corporate and property-level debt. Not all are pleasant. As the company announced in December it was taking a $250 million write down on its Atlantic Yards project in Brooklyn, N.Y., LaRue said, “Clearly, we are disappointed.”
RAY LEACH CEO JumpStart Inc. Cleveland Age: 48 Type of organization: Economic development Involvement: Invent Now Kids; National Venture Capital Association; Team NEO; U.S. Commerce
Department National Advisory Council on Innovation and Entrepreneurship In the news: Plummeting investment in area startups prompted Mr. Leach to tell Crain’s last June, “We’re not saying the sky is falling, but we’re watching this very carefully and we’re concerned.” Last year, the Fund for Our Economic Future awarded a grant of up to $500,000 to JumpStart “to sustain and strengthen Northeast Ohio’s culture of high-growth entrepreneurship.”
BISHOP RICHARD LENNON* Bishop Catholic Diocese of Cleveland Cleveland Age: 66 Type of organization: Religious organization Involvement: Catholic Charities Foundation; Catholic Community Connections; Knights of the Holy Sepulchre; Catholic Lawyers Guild; Canon Law Society of America In the news: Lennon balked at signing off on a deal allowing Summa Health System to sell 30% of its enterprise to Catholic Health Partners of Cincinnati because Summa planned to remain a secular organization. CHP ultimately completed the deal through HealthSpan, a nonreligious auxiliary organization of the health system.
FRANK LINSALATA Chairman, founder Linsalata Capital Partners Mayfield Heights Age: 71
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Type of organization: Private equity Involvement: Case Western Reserve University, Laurel School, Pepper Pike Club, The 50 Club In the news: The firm announced in late 2013 it had sold two of its portfolio companies — Paradigm Packaging in New Jersey and Royal Baths Manufacturing in Texas. In January, the firm acquired THRO Ltd. as an add-on to its portfolio company, The Home Décor Cos. in Mississippi.
MILTON MALTZ* Philanthropist, entrepreneur Founder, Maltz Museum of Jewish Heritage Cleveland; Palm Beach Gardens, Fla. Age: 84 Type of organization: Nonprofit Involvement: Maltz Museum of Jewish Heritage; Cleveland Museum of Art; Maltz Performing Arts Center at Temple Tifereth; Cleveland Orchestra; Cleveland Play House In the news: Milton and his wife, Tamar, were recipients of the Robert P. Bergman Prize from the 2013 Cleveland Arts Prize for their generous contributions to the community over the years.
MORTON MANDEL* Chairman, CEO, Parkwood LLC Co-founder, Jack, Joseph and Morton Mandel Foundation Bratenahl Age: 92 Type of organization: Private trust/ philanthropic organization Involvement: Cleveland Tomorrow; MidTown Cleveland; United Way; Case Western Reserve University; Jewish Federation of Cleveland In the news: The Mandel name continues to be linked with philanthropy. The Jack, Joseph and Morton Mandel Foundation last year awarded $8 million to Case Western Reserve University to support the university’s social work, leadership and community engagement programs. Early this year, the Smithsonian’s Cooper-Hewitt, National Design Museum in New York City received a $10 million gift from the Morton and Barbara Mandel Family Foundation. (Photo: Nannette Bedway)
CHRISTOPHER MAPES* Chairman, CEO Lincoln Electric Euclid Age: 52 Type of organization: Manufacturing Involvement: MAGNET; American Red Cross Greater Cleveland Chapter; Greater Cleveland Partnership; National Association of
Manufacturers; Manufacturers Alliance for Productivity and Innovation In the news: Mapes, who ascended to the CEO post in 2012, took over as Lincoln Electric’s chairman in 2013, replacing John M. Stropki Jr., who retired in December as a member of the Lincoln board. This fall, Lincoln distributed its 80th consecutive profit-sharing bonus. The 2013 total gross bonus pool was $100.7 million, the largest total dollar bonus in Lincoln Electric’s history, and the average bonus per employee was $33,029.
JOE MARINUCCI* President, CEO Downtown Cleveland Alliance Cleveland Age: 60 Type of organization: Nonprofit Involvement: Cleveland Restoration Society; Cleveland Police Foundation; Group Plan Commission; Little Italy Redevelopment Corp.; Urban Research Park CDE In the news: The Downtown Cleveland Alliance and other community partners spearheaded the development of the city’s NineTwelve District, which covers the area from East Ninth Street to East 12th Street between Euclid and Lakeside avenues. The group was recently honored for its work in the district by the International Downtown Association. continued on PAGE P-8
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A. Maron
R. Maron
ARI, JORI AND RICK MARON Partners MRN Ltd. Cleveland Age: Ari, 35; Jori, 32; Rick, 65 Type of organization: Real estate Involvement: J. Maron Ari Maron — Positively Cleveland, El Sistema Cleveland, Historic Gateway Neighborhood In the news: In August, The Atlantic highlighted the efforts of the Maron family and MRN Ltd. to create the lively East Fourth neighborhood. The piece noted, “There wasn’t a market for urban living in Cleveland until developers like the Marons built places where young professionals would want to be.”
ANDY MATTES* President, CEO Diebold Inc. Green Age: 52 Type of organization: Integrated self-service delivery systems and services Involvement: N/A In the news: In the news: Mattes, a former executive with Hewlett-Packard Co. and Germany’s Siemens AG, was named Diebold’s president and CEO in June. He replaced Thomas Swidarski, who was fired by the company in January of last year. Mattes said during a 2013 conference call that the company won’t be just an automated teller machine producer in the future — it will be a company led by services and that it has room to grow.
CHRISTINE AMER MAYER President GAR Foundation Akron Age: 42
Type of organization: Nonprofit Involvement: United Way of Summit County; Leadership Akron; Greater Akron Chamber; Milestones Autism Organization; Fund For Our Economic Future In the news: In December, the foundation awarded more than $2 million in grants to 41 nonprofit organizations. The largest of the grants — for $435,000, distributed in $145,000 increments over three years — is for the Greater Summit County Early Learning Center.
KEVIN MCMULLEN Chairman, CEO Omnova Solutions Inc. Fairlawn Age: 53 Type of organization: Specialty chemicals, wall coverings Involvement: Team NEO; Ideastream; Positive Coaching Alliance In the news: Omnova announced in September it planned to move from Fairlawn to a new corporate headquarters at Chagrin Highlands in Beachwood. At the time, McMullen said, “We believe it is the perfect spot to build our future.”
RICHARD MCQUEEN CEO, president Akron-Canton Airport Plain Township Age: 54 Type of organization: Transportation Involvement: Walsh University; Greater Akron Chamber; Akron/Summit County Convention and Visitors Bureau; Canton Regional Chamber of Commerce; Stark Development Board In the news: More than 1.7 million passengers flew to and from Akron-Canton in 2013, making it the second-best year in the airport’s history. More than 1.8 million passengers chose the airport in 2012, its busiest year on record.
POWER 150 STEVE MILLARD President, executive director Council of Smaller Enterprises Cleveland Age: 45 Type of organization: Business service, advocacy Involvement: National Small Business Association; Chamber of Commerce Executives of Ohio; Presidents Council Foundation; United Way of Greater Cleveland In the news: Under Millard’s leadership, COSE is reworking its business model and hopes to see its finances move from nearly 100% of revenue coming from membership dues to less than 50% from dues as it moves ahead. Millard told Crain’s, “Our focus is helping small business owners achieve their idea of success. I don’t care where they are; I want to help them.”
BETH MOONEY Chairman, CEO KeyCorp Cleveland Age: 58 Type of organization: Banking Involvement: Greater Cleveland Partnership; Musical Arts Association; Cleveland Clinic; United Way of Greater Cleveland In the news: American Banker, a leading industry publication, named Mooney “the most powerful woman in banking.” In its profile of Mooney, the publication said she’s “focused on what may be banks’ greatest single challenge these days: growing revenue.”
DAN T. MOORE III President Dan T. Moore Co. Cleveland Age: 74 Type of organization: R&D, acquisition entity, business incubator Involvement: Cleveland State University; Cleveland Metroparks; Cleveland Clinic; Cleveland Museum of Natural History; University School
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In the news: In July, NatGasCar LLC, a Moore Co. portfolio company that develops kits for converting gasoline-powered vehicles to run on natural gas, announced a partnership with Alternative Vehicle Solutions, a company in Salt Lake City that installs the conversion kits.
BERNIE MORENO* President The Collection Auto Group North Olmsted Age: 46 Type of organization: Automotive retailing Involvement: Cuyahoga Community College Foundation; Young Presidents’ Organization; Cleveland State University; 50 Club; Ohio Business Roundtable In the news: Moreno announced in December that he would add Rolls-Royce of Cleveland to his chain of dealerships. In October, Moreno’s Collection Auto Group opened a dealership in the Cincinnati area, Mercedes-Benz of Fort Mitchell.
DAN MOULTHROP* CEO The City Club of Cleveland Cleveland Age: 40 Type of organization: Civic engagement (nonprofit) Involvement: Facing History New Tech High School (Cleveland Metropolitan School District); Leadership Cleveland In the news: Last year, Moulthrop became the leader responsible for steering the City Club in executing the first comprehensive strategic plan it’s had in eight years. That plan seeks to extend the club’s conversations beyond its live forums and to further engage audiences via social media and different events.
FREDERICK R. NANCE Regional managing partner, Squire Sanders Senior adviser and special counsel, Cleveland Browns Cleveland Age: 60 Type of organization: Law
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Involvement: Greater Cleveland Partnership; Cleveland Clinic Foundation; RPM International Inc.; The Cleveland Foundation; 50 Club of Cleveland In the news: “Historically, the practice of law has been largely based upon precedent and tradition,” Nance wrote for Crain’s Who to Watch in Law section in July. “… The successful business practice of law has almost no use for tradition. Leading large numbers of lawyers in the process of adapting to evolving client needs — for example, quality interactive communication, the use of technology, transparency and outcome and budget predictability — will be absolutely key.”
BRAD NELLIS Executive director NEOSA, The COSE Technology Network Cleveland Age: 51 Type of organization: IT industry association Involvement: Tri-C IT Advisory Council; University of Akron; Kent State University; Cleveland State University; Technology Councils of North America In the news: After a long streak of growth, information technology companies in Northeast Ohio probably will slow down their expansion, Nellis predicted to Crain’s recently. He pointed to NEOSA’s survey for the third quarter of 2013, when the percentage of local IT companies that described their performance as “good” or “very good” (54%) was way down from 73% for the year-ago quarter.
ARAM NERPOUNI* President, CEO BioEnterprise Corp. Cleveland Age: 43 Type of organization: Nonprofit biomedical business formation, recruitment and acceleration initiative Involvement: Child Guidance & Family Solutions in Akron; Knight Foundation Community Advisory Committee In the news: “In the midst of a challenging investment environment, the Midwest continues to attract interest from investors,” Nerpouni said in a July news release. Named president last year, Nerpouni was reflecting on the news that Cleveland health care startups attracted more investments in the first half of 2013 than those in any other Midwestern city.
STEPHEN D. NEWLIN Chairman, president, CEO PolyOne Corp. Avon Lake Age: 60 Type of organization: Specialty polymer materials, services and solutions Involvement: Oshkosh Corp.; Black Hills Corp.; Greater Cleveland Partnership; Ohio Business Roundtable; Firestone Country Club In the news: When PolyOne announced early this year a further realignment of assets the company acquired as part continued on PAGE P-9
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of its $393 million deal for Spartech Corp., Newlin said the company remains “extremely pleased with the Spartech acquisition.” He added, “We continue to see upside opportunities to expand our portfolio of offerings and better serve our customers, and we remain committed to delivering 50 cents of EPS (earnings per share) accretion from the deal in 2015.”
RICHARD M. OSBORNE* Real estate developer (primarily Lake County) President, CEO; Gas Natural Inc. Mentor Age: 68 Type of organization: Single-family dwellings; natural gas public utility Involvement: N/A In the news: Two subsidiaries of Gas Natural came under fire last year from the Public Utilities Commission of Ohio, which ordered an investigative audit of them and all related parties, citing concerns about the companies’ internal controls and alleged self-dealing by management, which includes members of the Osborne family. The companies filed for a rehearing, but their application was denied in January.
KAREN M. PAGANINI; DOUGLAS E. PRICE III President/CEO K&D Management LLC Willoughby Age: Karen, 57; Douglas, 57 Type of organization: Apartment owners, managers and developers Involvement: Paganini — Andrews Osborne Academy, Downtown Cleveland Improvement Corp., National Apartment Association; Price — Mentor Harbor Yachting Club, Northeast Ohio Apartment Association In the news: Helping to drive the remaking of Cleveland’s former financial district as a mixed-use neighborhood, K&D is at work converting to apartments the vacant 21-story office building that once housed East Ohio Gas Co. It plans to open the first of 223 apartments this July in a project it’s calling the Residences at 1717, reflecting the 1717 E. Ninth St. address.
DON PLUSQUELLIC Mayor City of Akron Akron Age: 64 Type of organization: Government Involvement: U.S. Conference of Mayors; Akron Tomorrow; National League of Cities; Summit County Mayors Association; Mayors for Peace In the news: According to a story in June in The New York Times about Akron’s retention of Goodyear Tire & Rubber Co., Plusquellic “is described by his aides and business executives as a master at recruiting developers, negotiating for state and federal funds for infrastructure and at efficiently reviewing and approving city
permits to build projects — among them a convention center, a minorleague baseball stadium and new and renovated office buildings.”
STEVE POTASH CEO OverDrive Inc. Garfield Heights Age: 61 Type of organization: Supplier of ebooks to libraries, schools and booksellers Involvement: Cleveland-Marshall College of Law; Friends of Cleveland Public Library; Park Synagogue In the news: Already having grown its staff to 200 from 130 two years ago, OverDrive continued to hire last year, according to Potash. He also told Crain’s in April 2013 that he expected the company, which operates from new headquarters, to process its 200 millionth checkout last summer.
BILL PRIEMER* President, CEO Hyland Software Westlake Age: 46 Type of organization: Computer software, enterprise content management Involvement: Business Volunteers Unlimited In the news: When it was announced that Priemer would assume the top role at Hyland Software early last year, his predecessor, A.J. Hyland, described him as “a phenomenal communicator, a brilliant strategist and a galvanizer of people to get things done.” Priemer said at the time that Hyland Software will push ahead with existing plans to buy other content management software companies and to expand sales in other countries.
History In the news: “I think there are many more companies and ideas that are percolating in the region … than I think there is adequate capital to support them,” Rankin told Crain’s in September. Funds like his, he said, face the challenge of venture capital firms having had a hard time raising money lately.
CHARLES A. RATNER; ALBERT B. RATNER Chairman of the board; co-chairman emeritus Forest City Enterprises Inc. Cleveland Ages: Charles, 72; Albert, 86 Type of organization: Real estate Involvement: Charles — RPM International Inc., Greater Cleveland Partnership, United Way of Greater Cleveland, Jewish Federation of Cleveland, Musical Arts Association; Albert — Shoes and Clothes for Kids; Henry M. Jackson Foundation; Global Cleveland, Quality Electrodynamics, Governor’s Executive Workforce Board In the news: With their roles at Forest City changing, the Ratners are remaining visible and active in the philanthropic and charitable circles locally and nationally. Charles Ratner was with a group that met with Israeli Prime Minister Benjamin Netanyahu a year ago. Albert Ratner is on the board of Global Cleveland and has been vocal repeatedly over the last year for the city to increase its attractiveness to immigrants to boost the region’s economic development.
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JIM RENACCI*
RONALD B. RICHARD
U.S. representative, Republican, 16th District U.S. House of Representatives Wadsworth Age: 55 Type of organization: Government Involvement: As a member of Congress, Rep. Renacci is prohibited from sitting on the boards of outside organizations. In the news: Early this year, Renacci promoted a program that would allow states to use unemployment insurance money for programs that would make it possible for recipients to collect pay while getting on-the-job training, according to a story in The Plain Dealer. According to news reports, Renacci returned campaign contributions after allegations were made about illegal campaign finance activities on the part of the donor.
President, CEO The Cleveland Foundation Cleveland Age: 58 Type of organization: Nonprofit Involvement: Lake Erie Energy Development Corp.; Cleveland School of Science and Medicine; Hispanics in Philanthropy; Evergreen Cooperative Corporation; NewBridge Cleveland - Center for Arts & Technology In the news: The Cleveland Foundation is celebrating its centennial in 2014 by offering gifts, such as free RTA rides, to the community throughout the year. The organization also announced plans to create a program to help people near retirement use their skills to help the community and signed on as the first-ever presenting sponsor for the Gay Games.
GLENN RENWICK Chairman, president, CEO The Progressive Group of Insurance Companies Mayfield Village Age: 58 Type of organization: Property and casualty insurance Involvement: Fiserv Inc.; United HealthGroup In the news: Progressive made big moves to hire in 2013. In the fall, the company announced plans to hire 900 employees across the country, including 200 in the Cleveland area. Renwick was elected by the company’s board of directors to the additional role of chairman following the death of previous chairman Peter B. Lewis.
JOE ROMAN President, CEO Greater Cleveland Partnership Cleveland Age: 57 Type of organization: Chamber of commerce Involvement: Cleveland Metropolitan Bar Association; Cleveland Development Advisors; Rock and Roll Hall of Fame and Museum; United Way of Greater Cleveland; Great Lakes Metro Chambers Coalition In the news: The Greater Cleveland Partnership will be leading up the campaign for a 20-year extension of the city’s sin tax. The tax, which supports Cleveland’s sports facilities, will be on continued on PAGE P-10
JOE PULIZZI* Founder Content Marketing Institute Cleveland Age: 40 Type of organization: Education and training Involvement: The Press Club of Cleveland; Easter Seals Northern Ohio In the news: Pulizzi announced in January another blockbuster speaker for the Content Marketing Institute’s annual Content Marketing World event: Kevin Spacey, the star of “House of Cards.” Last year’s event featured William Shatner and drew 1,700 marketing and public relations professionals to Cleveland’s new convention center from 46 countries. He is an “influencer” on LinkedIn, and he is a contributing author for Entrepreneur.com.
Success Depends on Staying Ahead of the Pack
CLAIBORNE ‘CLAY’ R. RANKIN Managing member North Coast Angel Fund Cleveland Age: 63 Type of organization: Early stage venture capital Involvement: SironRX Therapeutics Inc.; Neuros Medical Inc.; LogicBay Corp.; Hyster-Yale Materials Handling Inc.; Cleveland Museum of Natural
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P-10 CRAIN’S CLEVELAND BUSINESS the ballot in May. “We obviously have a lot of education to do,” Roman said. “This is about so much more than a scoreboard. These are facilities you own, that we — Cuyahoga County residents — own.”
CHRIS RONAYNE President University Circle Inc. Cleveland Age: 45 Type of organization: Nonprofit, development and advocacy corporation Involvement: Holden Parks Trust; Cleveland-Cuyahoga County Port Authority; Positively Cleveland; Notre Dame College; Ohio Canal Corridor In the news: University Circle Inc. is looking to encourage business development and will be sponsoring a program called “NextStep: Strategies for Business Growth” later this year. The seven-month program will expose 15 small business owners to all facets of business development.
WALT ROSEBROUGH President, CEO, board member Steris Corp. Mentor Age: 60 Type of organization: Manufacturing, health care Involvement: AdvaMed; Greater Cleveland Partnership; Health Insights; Rock and Roll Hall of Fame and Museum; CCI Healthcare Executive Forum In the news: Last year, Steris made the top five in Crain’s Superstar 10 list, a list that measures factors such as 12-month return to shareholders and percentage change in profits year-to-year. In 2012, privately held US Endoscopy, founded in 1991, sold its business to Steris in a $270 million all-cash transaction.
JONATHON SAWYER Chef/owner Greenhouse Tavern, Noodlecat, Tavern Vinegar Co., SeeSaw Pretzel Shoppe, Sawyer’s Street Frites Cleveland Age: 33 Type of organization: Food and beverage Involvement: Green Restaurant Association; James Beard Foundation; Slow Food, National Restaurant Association; Northern Food Alliance In the news: Sawyer and his wife ventured into crowdfunding at the start of the new year, turning to Kickstarter for help launching their new restaurant, Trentina. The campaign surpassed its goal of $21,999 in less than a week.
JOSEPH SCAMINACE Chairman, CEO OM Group Inc. Cleveland Age: 60 Type of organization: Manufacturing, specialty chemicals, battery technologies, industrial products Involvement: The Cleveland Clinic; Parker Hannifin Corp.; Cintas Corp. In the news: OM Group has been
redefining itself and made some sales to move from more of a commoditybased company to a technologybased one. In 2013, OM Group sold its Advanced Materials business and its Ultra Pure Chemicals subsidiaries for $325 million in cash and about $63 million in net cash considerations, respectively.
ROBERT N. SCHMIDT Chairman, CEO, founder Cleveland Medical Devices Inc.; Orbital Research Inc.; NeuroWave Systems Inc.; Flocel Inc.; Great Lakes NeuroTechnologies Inc. Cleveland area Age: 65 Type of organization: Medical and electronic devices, control systems Involvement: National Small Business Association; Small Business Technology Council; IEEE-USA; Ohio Aerospace Institute; Washington University, St. Louis In the news: In December, Cleveland Medical Devices was awarded a $1 million loan from the Ohio Third Frontier Commission to expand the commercialization of the company’s SleepView testing system for sleep apnea.
IVAN SCHWARZ* President Greater Cleveland Film Commission Cleveland Age: 52 Type of organization: Film, economic development Involvement: N/A In the news: Last year was a big year for the film commission, as Cleveland saw “Draft Day,” “Captain America: The Winter Soldier” and a number of smaller movies filmed around the region. In 2012, the state voted to raise the Ohio Motion Picture Tax Credit to $20 million a year.
BAIJU R. SHAH CEO BioMotiv Shaker Heights Age: 42 Type of organization: Biotechnology company Involvement: Global Cleveland; The Harrington Project for Discovery & Development; Great Lakes Science Center; Positively Cleveland; United Way of Greater Cleveland In the news: After leading BioEnterprise Corp., Shah in summer 2012 announced he would leave his position as president of the highly visible biomedical business accelerator to become CEO of BioMotiv. In 2012, BioMotiv started with the goal of reducing the cost of drug development by helping to bridge the gap between research institutions and investors. Since then, the company has formed partnerships, such as that with Cures Within Reach, and created spinoff companies such as Orca Pharmaceuticals.
MARK SHAPIRO* President Cleveland Indians Cleveland Age: 46 Type of organization: Sports
POWER 150 Involvement: Positive Coaching Alliance, Cleveland chapter; Positively Cleveland; Recovery Resources In the news: Despite a strong season from the Cleveland Indians, which included a brief trip to the playoffs, attendance was low. “I think the largest driver of our attendance numbers are tied to our market size,” Shapiro said to Crain’s in September. “The second factor is we need to get a greater number of season tickets or advanced purchases in a city where so few people live and work downtown.”
THE REV. HILTON O. SMITH* President NAACP, Cleveland branch Cleveland Age: 67 Type of organization: Civil rights Involvement: University Hospitals; United Way; United Negro College Fund; Prince Hall Shriners Foundation; Clear Channel’s Community Advisory Board In the news: In 2012, Smith was elected to a two-year term as president of the Cleveland branch of the NAACP, becoming the group’s first new president in 20 years, according to The Plain Dealer. Smith also has been in the news for his stance on the Trayvon Martin shooting case and worked with Cuyahoga County to launch the Sheriff Department’s “Strategies Against Violent Encounters,” which focuses on self-defense.
RICKY D. SMITH Director Department of Port Control, City of Cleveland Cleveland Age: 51 Type of organization: Government, transportation Involvement: American Association of Airport Executives; Cuyahoga Valley Scenic Railroad; Airports Council International — North America; the U.S. National Freight Advisory Committee; Journey Foundation In the news: On Feb. 1, United Airlines announced plans to drop its Cleveland hub and cut 470 jobs. Smith told city council that the end of the hub arrangement and the special treatment accorded United because of its dominant position at Hopkins will free his business development staff to market Hopkins more vigorously to competing airlines. “We didn’t pursue some opportunities as aggressively as we can now,” he told council. “We will see new service; I am confident of that.” In 2013 overall, the airport reported a slight increase in passenger traffic.
ROBERT C. SMITH President, CEO Spero-Smith Investment Advisers Inc. Beachwood Age: 61 Type of organization: Investment management firm, wealth management, financial planning Involvement: Cleveland-Cuyahoga
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County Port Authority; Ohio Public Employees Retirement System; Motorists Insurance Group (Columbus); Greater Cleveland Partnership; Lake Ridge Academy In the news: In 2013, Ohio Treasurer Josh Mandel appointed Smith to the Ohio Public Employees Retirement System as an investment expert. He previously served on the OPERS Board from 2004-2007. He chairs the Investment Committee.
BARBARA R. SNYDER President Case Western Reserve University Cleveland Age: 58 Type of organization: Higher education Involvement: Association of American Universities; Business-Higher Education Forum; BioEnterprise; Greater Cleveland Partnership; Musical Arts Association In the news: Snyder summed up how things were going at CWRU in a June Crain’s article: “These are exciting times at Case Western Reserve — applications are skyrocketing, our capital campaign is thriving and our faculty continue to do groundbreaking work. And (recently) we announced a collaboration with the Cleveland Clinic to construct a state-of-the-art medical building. I am committed to seeing through all of these initiatives underway and identifying new opportunities for progress. I am proud to be president of Case Western Reserve and intend to continue in this role for many years to come.”
STEPHEN SPOONAMORE Co-founder/SVP of business development ABSMaterials, Inc. Wooster Age: 49 Type of organization: Advanced materials
Involvement: American Filtration Society; American Water Works Association; Wayne Center for the Arts Board; Wooster Community Hospital’s WooMan Board; Ebeneezer Lodge No. 33 Free and Accepted Masons In the news: ABS is the maker of Osorb, an engineered glass material, and systems using Osorb. The product and systems rapidly recover or destroy persistent environmental contaminants from water, including solvents, petroleum products, pharmaceuticals, pesticides, biocides and many synthetic volatiles. The company garnered media attention for its technology and its ability to clean up polluted water throughout the year, then in November it announced it had successfully raised $4 million in new financing to continue its expansion.
DR. JONATHAN S. STAMLER* Director, Institute for Transformative Molecular Medicine, Case Western Reserve University/University Hospitals Case Medical Center Director, Harrington Discovery Institute, UH Case Medical Center, Cleveland Age: 54 Type of organization: Biotechnology Involvement: N/A In the news: The Harrington Discovery Institute at UH Case Medical Center in December awarded grants to 11 physician-scientists, who each could receive up to $200,000 over two years. “Our overall goal is to build a network of physician-scientists across the nation on the front lines of drug development,” Stamler stated in a news release announcing the awards. “When fully scaled, the Harrington Discovery Institute plans to have the capacity to develop 40 drug therapies simultaneously every three years.” continued on PAGE P-11
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ROBERT STARK* President, CEO Stark Enterprises Cleveland Age: 62 Type of organization: Commercial real estate Involvement: International Council of Shopping Centers; Fuchs Mizrachi School; Great Lakes Theater In the news: Stark Enterprises is expanding its portfolio with $400 million in new development in Northeast Ohio’s prime shopping districts. New development includes Crocker Park’s 1.1 million-square-foot Phase III expansion, the new development of land adjacent to Eton Chagrin Boulevard as well as a new 234,000-square-foot, groceryanchored, main street center, Portage Crossing in Cuyahoga Falls.
MARC A. STEFANSKI Chairman, CEO Third Federal Savings & Loan Cleveland Age: 59 Type of organization: Banking Involvement: New Directions; The Cleveland Social Exchange In the news: Third Federal Savings & Loan celebrated its 75th anniversary in 2013. Stefanski, the founders’ son, has grown the company from a $2 billion local S&L in 1987 to an $11 billion regional thrift with branch offices in Ohio and Florida and mortgage lending in 14 states.
THOMAS STRAUSS President, CEO Summa Health System Akron Age: 61 Type of organization: Health care Involvement: Akron Tomorrow; Greater Akron Chamber; BioEnterprise; Akron Regional Hospital Association; Team NEO In the news: Summa had a big year in 2013, bringing on new executives and receiving the largest gift — $4 million — in the organization’s history. In September, it sold a 30% interest in itself and became one of four entities to make up a new inter-hospital alliance known as Health Innovations Ohio.
STEPHEN STRNISHA* CEO Cleveland International Fund Cleveland Age: 53 Type of organization: Private equity fund (utilizing the EB-5 program to attract immigrant investment funds) Involvement: Association to Invest in USA; City of Shaker Heights’ Economic Development Task Force; Village Capital Corp.; Shaker Heights schools; Ohio advisory committee, Council of Development Finance Agencies In the news: In addition to reorganizing the fund and moving it downtown, Strnisha has helped guide the fund’s investment in several high-profile projects, including the Flats
East Bank and, more recently, the University Hospitals Health System expansion and the renovation of the Westin Cleveland Downtown hotel.
cities, hosted “The Chew” on television (including an episode from Cleveland Heights,) and was nominated for a second James Beard Award.
FRANK C. SULLIVAN
EDDIE TAYLOR
Chairman, CEO RPM International Inc. Medina Age: 53 Type of organization: Specialty coatings Involvement: U.S. Chamber of Commerce; The Cleveland Foundation; Rock and Roll Hall of Fame and Museum; Ohio Business Roundtable; Greater Cleveland Partnership In the news: RPM and Sullivan received media attention in 2013 for the company’s rising earnings, along with the company’s acquisition of Minnesota-based Citadel Restoration and Repair and the terrazzo tile maker, Expanko Inc., of Pennsylvania.
President Taylor Oswald LLC Cleveland Age: 48 Type of organization: Insurance Involvement: Greater Cleveland Partnership Commission on Economic Inclusion; Greater Cleveland Sports Commission; College Now Greater Cleveland; Ohio Foundation of Independent Colleges; Allegheny College In the news: Taylor has been recognized as a top local executive and his company and its parent, Oswald Companies, continue to expand. In May, Oswald Cos. acquired Westlake-based McManamon Financial Services, a firm specializing in group benefits insurance.
ROGER SUSTAR Founder, CEO Fredon Corp. Mentor Age: 70 Type of organization: Manufacturing Involvement: AWT Foundation (Alliance for Working Together); Legatus; Mentor Area Chamber of Commerce, Mentor Rotary; National Tooling & Machining Association In the news: Aside from commenting on all matters affecting manufacturing in a variety of media, Sustar also has gained headlines for working with high school students interested in industrial jobs, principally through the AWT organization that he helped found.
MARYROSE SYLVESTER President, CEO GE Lighting East Cleveland Age: 48 Type of organization: Manufacturing Involvement: National Electrical Manufacturers Association; Foundation Fighting Blindness; Greater Cleveland Partnership; United Way of Greater Cleveland; Case Western Reserve University In the news: PlayhouseSquare Foundation and GE Lighting last year announced the construction of the world’s largest outdoor chandelier for downtown Cleveland. Sylvester said the company is “proud to be the exclusive sponsor of PlayhouseSquare’s iconic chandelier and also play a significant role in lighting the theater district with innovative, energy-efficient LED lighting. “
MICHAEL SYMON Chef/restaurant owner, television host, author Michael Symon Restaurants, ABC’s “The Chew,” Food Network, Cooking Channel Cleveland Age: 44 Type of organization: Food and beverage Involvement: Autism Speaks In the news: In the last year, Symon has expanded his restaurants to more
CRAIN’S CLEVELAND BUSINESS P-11 we’ve brought on, and the mid- and senior-level team members we’ve also added in the past two years.”
WARD J. (TIM) TIMKEN JR.* Chairman The Timken Co. Canton Age: 46 Type of organization: Manufacturer Involvement: Pella Corp.; Team NEO; American Iron and Steel Institute; National Association of Manufacturers Executive Committee; Timken Charitable Trust In the news: Tim Timken’s title is about to change, as The Timken Co. is in the process of spinning off its steel business, which will be called TimkenSteel Corp. When the spinoff is complete, Tim Timken will become chairman and CEO of the new company.
TOM TYRRELL CEO, chairman Great Lakes Biomimicry Cleveland Age: 69 Type of organization: Nonprofit Involvement: Segmint Inc.; NorTech; Lorain County Community College Foundation; LCCC Innovation Fund; Cleveland Zoological Society In the news: GLBio is raising money to fund fellowships that allow graduate students to teach local businesses and students the value of biomimicry, the concept of copying ideas found in nature. The nonprofit also is recruiting allies to help fund the organization and spread the concept in other ways. “Nature’s solved every problem that there is out there,” Tyrrell said to Crain’s this past July.
JASON THERRIEN President thunder::tech Cleveland Age: 35 Type of organization: Marketing Involvement: Youth Opportunities Unlimited (Y.O.U.); Positively Cleveland; Business Marketing Association of Northeast Ohio; Cuyahoga County Community Improvement Corporation Board; multiple businesses In the news: “Our growth plan is being executed,” Therrien said, in announcing his company’s latest round of hiring, when seven staffers were added last summer. “It says a lot about the people
Congratulations Dr. Alex Johnson President Cuyahoga Community College
Crain’s Cleveland Business Power 150 Northeast Ohio
Where futures begin
SM
GIL VAN BOKKELEN CEO Athersys Inc. Cleveland Age: 53 Type of organization: Medical therapy developer Involvement: Lerner Research Institute; Case Western Reserve University Visiting Committee on Technology Transfer In the news: Athersys’ stock price has more than doubled since November. It could be because investors are getting excited about results from two ongoing clinical trials. One is an adult stem cell product for stroke patients that analysts say could transform the way stroke is treated, if it works.
DANIEL WALSH President, Greater Cleveland region Huntington National Bank Cleveland Age: 45 Type of organization: Bank Involvement: Greater Cleveland Partnership; Group Plan Commission; Positively Cleveland; Rock and Roll Hall of Fame and Museum; Playhouse Square In the news: Huntington Bank by far made more local loans backed by the U.S. Small Business Administration than any other bank during the fiscal year ending Sept. 30, 2013. Huntington issued 853 SBA loans totaling $96.2 million.
TOM WALTERMIRE CEO Team NEO Cleveland Age: 64 continued on PAGE P-12
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POWER 150
P-12 CRAIN’S CLEVELAND BUSINESS Type of organization: Nonprofit Involvement: Ohio Third Frontier; Cleveland Orchestra; Deaconess Foundation; Baldwin Wallace University; ideastream In the news: Last year, Team NEO attracted a record 16 companies to Northeast Ohio. They represent nearly 1,400 new jobs and more than $85 million in payroll.
DONALD E. WASHKEWICZ Chairman, CEO, president Parker Hannifin Corp. Mayfield Heights Age: 63 Type of Organization: Manufacturer Involvement: Greater Cleveland Partnership; Manufacturers Alliance for Productivity and Innovation; National Fluid Power Association; National Association of Manufacturers In the news: Washkewicz and his wife, Pamela, joined the Parker Hannifin Foundation in donating $10 million to Cleveland State University and its engineering program, which equals the largest gift the university has ever received. In response, the
PAUL WESTLAKE JR.
school, his alma mater, renamed the program the Washkewicz College of Engineering.
Managing principal Westlake Reed Leskosky Cleveland Age: 60 Type of organization: Architect Involvement: Maltz Museum of Jewish Heritage; Cleveland Orchestra; Blossom Music Center; Cleveland Museum of Art; Lakeview Cemetery In the news: Westlake Reed Leskosky, a firm known for its historic preservation specialty, did early design work related to the renovation of the lobby at 200 Public Square, one of downtown Cleveland’s most prominent buildings. The firm also is pursuing work in a new market: Africa.
JEFFREY WEISS, ZEV WEISS Co-chief operating officers American Greetings Corp. Brooklyn Age: Zev, 47; Jeffrey, 50 Type of business: Consumer products, services Involvement: Zev — United Way of Greater Cleveland, Jewish Federation of Cleveland, Fuchs Mizrachi School; Jeffrey — Cleveland Orchestra, Cleveland Institute of Art, Genius Brands In the news: In August, the Weiss family completed a deal to pay more than $600 million to acquire American Greetings, putting the company back in the hands of its founding family. The company, which had been publicly traded, still plans to move to Crocker Park in Westlake, though those plans were delayed by the purchase.
BRAD WHITEHEAD President The Fund for our Economic Future Cleveland Age: 53 Type of organization: Nonprofit Involvement: Ohio Venture Capital Authority; Brookings Institution Metropolitan Advisory Council; OneCommunity; Cleveland
FEBRUARY 17 - 23, 2014
Metropolitan School District Rows; Cleveland State University Levin School Visiting Committee In the news: The nonprofit helped fund the growing Prism program run by Magnet, the local manufacturing advocacy group. The program connects midsize manufacturers with resources throughout the region. “Manufacturing is not only in our past,” Whitehead said to Crain’s last August. “It’s very much in our future. It’s in our DNA.”
ERIC WOBSER Executive director Ohio City Inc. Cleveland Age: 35 Type of organization: Community development Involvement: Downtown Cleveland Alliance In the news: Wobser oversees economic development initiatives in one of Cleveland’s hottest neighborhoods. He’s a proponent of adding more family-friendly activities in Ohio City. Last year, he resigned from his post on the Cleveland school board; He also has been mentioned as a potential candidate for the Cuyahoga County executive post, although Wobser did not cite that as a reason for his resignation, according to The Plain Dealer.
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President, CEO Wolstein Group Moreland Hills Age: 61 Type of organization: Real estate developer Involvement: HELP; Case Western Reserve University; United Way of Greater Cleveland; Greater Cleveland Partnership; Real Estate Roundtable In the news: Along with Fairmount Properties, the Wolstein Group is leading the Flats East Bank redevelopment project. Ernst & Young Tower, the first new downtown skyscraper in 20 years, had little trouble attracting tenants, and last month the group received regulatory approval to begin construction on a 243-unit apartment building, which also will contain retail space.
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Executive vice president Downtown Cleveland Alliance; Historic Gateway Neighborhood; Historic Warehouse District Cleveland Age: 58 Type of organization: Nonprofit Involvement: Ohio & Erie Canalway Association; Ohio Canal Corridor; Heritage Ohio; Cleveland State University College of Liberal Arts and Social Sciences visiting committee In the news: Yablonsky manages organizations that at the moment are working to capitalize on a growing demand for downtown real estate. For instance, he’s been involved in long-running discussions about a proposal to turn the “superblock” of parking spaces between West Third and West Sixth streets into a bus transit hub.
HOW THEY WERE SELECTED There were no specific criteria used in selecting the “Power 150,” nor were they chosen through a nomination process. Rather, the editorial staff collectively gathered names, taking into consideration each person’s role in Northeast Ohio and that of their organization. An effort also was made to include a range of people, businesses and industries. In some instances — as was the case with Sandra Pianalto, president, CEO, Federal Reserve Bank of Cleveland; Lester Lefton, president, Kent State University; and Luis Proenza, president, University of Akron — a planned departure from a position of leadership resulted in exclusion from the list. Professional and civic organization involvement was limited to five listings per person for space considerations. The “Power 150” list is an updated version of the “Who’s Who” published in 2012. New listings are designated with an asterisk.
THOMAS F. ZENTY III CEO University Hospitals Cleveland Age: 58 Type of organization: Health care Involvement: Captive Insurance Corp.; Ohio Executive Workforce; Greater Cleveland Partnership; Ohio Business Roundtable In the news: Lately, UH has been rolling other hospitals into the UH system, including Parma Community General and EMH Healthcare in Elyria, and it aims to do the same with Robinson Memorial in Portage County. “It’s not uncommon for hospitals in today’s environment to be challenged economically,” Zenty said. “Based on what we saw in the (request for proposal for suitors) from Robinson, we can do some things to immediately to help their financial situation.”
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Data: Report said Cleveland was lone large metro area to lose jobs in 2013 continued from PAGE 5
for the country and, secondarily, for the 50 states and 372 metropolitan areas. But it goes further to include estimates of the numbers of people employed. After reporting an estimate of the percentage of people who were unemployed, the most recent CES news release on Feb. 5 reported that by the end of December, 294 metro areas had employment gains, 67 had decreases and 11 had no change in the number of people employed compared with numbers from December 2012. The news release then went on to say, “The only large area that had an over-the-year percentage decrease in employment was Cleveland-Elyria-Mentor, Ohio, (-0.6%).” That report led to news stories across the region, such as an Akron Beacon Journal story headlined, “Cleveland region loses more jobs than any metro area in the nation; Akron area gains jobs.” But the staffs of both Team NEO, and Cleveland State’s Maxine Goodman Levin College of Urban Affairs say those stories are based on lowquality information that is quietly revised, though publicly released, months later. “(That) estimate is so unreliable,” said Tom Waltermire, CEO of Team NEO. The numbers, he said, “are just not worth doing anything with from a news standpoint.” Added Edward “Ned” Hill, dean of the urban college: “BLS knows that the errors in these data are quite large and are due to the way they do their sample. Releasing this data for public consumption is irresponsible.” Both Hill and Waltermire cite revised reports from earlier in 2013 that turned Cleveland-area job losses into a job gain. In one month in 2013, for instance, they saw a loss of 6,900 jobs in the Cleveland metro area revised into a gain of nearly 9,000 jobs. Hill, Waltermire and members of their staffs made the case for their complaint to Crain editors last Tuesday, Feb. 11. They are concerned, Hill said, that businesses making decisions about where to expand will pay attention to what he believes are flawed estimates triggering news stories that “affect investment decisions, political campaigns and the perception of investment risk.” The Bureau of Labor Statistics did not respond to an email sent late last week about the CSU and Team NEO complaints. A recorded voice message at the BLS press office said the office was closed due to bad weather in Washington, D.C.
Nerdy talk Jacob Duritsky, Team NEO’s managing director of research, compared the CES data with another separately compiled program from BLS, the Quarterly Census of Employment and Wages, or QCEW. The CES, according to the BLS website, surveys about 5% of the country’s businesses, primarily to come up with an estimate of unemployment and the jobs gained or lost nationally. The CES data for a given month is released about five weeks after the end of that month, and while BLS advises that the data is subject to revision, it is this report that makes headlines. The Clevelanders say the QCEW data are the more accurate measure of job gains and losses. QCEW data are based on a census of 98% of all employers. But the QCEW information isn’t available until five months after the CES data is released to news
“Our first mission is to try to convince everybody to ignore this stuff.”
media, and it rarely makes headlines because the information is relatively out of date. So while the CES reported in early August a loss of 6,900 jobs in the Cleveland metro area between June 2012 and June 2013, the recently released QCEW shows a gain of 8,963 jobs over the same time frame. Similar discrepancies appear in other months, and the Clevelanders believe the more recent job losses reported in the CES will vanish when the QCEW information becomes available. BLS said it believes its national sample is sufficiently large to support the national estimates. However, since it breaks down that sample into 372 metro areas, it
– Tom Waltermire, CEO of Team NEO, on CES job data acknowledges the sample size for any metro is considerably less accurate. Indeed, it doesn’t really claim any level of accuracy. “Measures of sampling error are not available for metropolitan areas,” is the qualification BLS includes in the small type in its press releases and other reports.
Just ignore it Clevelanders aren’t the only ones looking for better numbers.
Kenneth Poole, CEO of the Center for Regional Economic Competitiveness, a nonpartisan think tank for regional economic development based in Arlington, Va., said in an email, “To some degree, the issue can be tied to BLS’ national focus (where they tried to make sure all the state estimates add up to the national number) and the states’ more local focus. It is a simple saga of limited resources and control over the statistics being released.” Keith Phillips, a researcher at the Federal Reserve Bank of Dallas, has written about his own concerns about the BLS data. “I don’t believe it’s a conspiracy,” Phillips said in a voice mail sent
while he was traveling. “There are a lot of issues here.” He said he’s working on ways to blend the two data sources together to provide local news organizations with a more accurate picture of employment. The Clevelanders acknowledge that BLS works continually to adjust and refine the CES survey to keep it as accurate as possible and that the Cleveland metro may find the next revisions could overstate the local employment numbers, which would make the city look better to business investors. But they say they will push for a fair solution. “Our first mission is to try to convince everybody to ignore this stuff,” Waltermire said. “We will try to get BLS to change.” ■
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LARGEST 2013 NE OHIO PHILANTHROPIC GIFTS RANKED BY GIFT AMOUNT(1)
Development contact Phone number Rank Recipient
Donor
Gift amount
Gift date
1
College of Wooster
Ruth Williams and A. Morris Williams Jr.
15,000,000
2
Cleveland Clinic(2)
Anonymous
10,000,000
Sept. 25, 2013
2
Cleveland Clinic
Anonymous
10,000,000
2
Cleveland Museum of Art
Anonymous
2
Cleveland State University
6
Purpose of the gift
of science facility and scholarship and Oct. 5, 2013 Support professorship endowments
Connection to recipient Board member
Laurie K. Houck (330) 263-2583
Medical education building
Volunteers, grateful patients
Armando Chardiet (216) 444-1245
March 31, 2013
Miller Family Heart & Vascular Institute
Trustee, grateful patient
Armando Chardiet (216) 444-1245
10,000,000
November 2013
Various programs and projects
Longtime friends of the museum
August A. Napoli Jr. (216) 707-2595
Donald and Pamela Washkewicz and Parker Hannifin Corp.
10,000,000
Nov. 19, 2013
Engineering education, research, innovation, scholarships and state-of-the-art renovations
Alumnus, generous supporter of CSU
Berinthia R. LeVine (216) 523-7275
Community Foundation of Lorain County
Louise Jakmas
9,189,000
7
Case Western Reserve University
Jack, Joseph and Morton Mandel Family Foundation
8,000,000
April 2013
Programs in social work, nonprofit leadership and community engagement
Longtime supporter and donor
Lawrence Gibson (216) 368-4352
8
Case Western Reserve University
Anonymous
7,750,000
September 2013
Programs in art history
N/A
Lawrence Gibson (216) 368-4352
9
University Hospitals
Dr. Donald J. and Mrs. Ruth A. Goodman
7,744,473
Dec. 20, 2013
Goodman-Weber cancer and cardiovascular projects
Generous benefactor
Sherri Bishop (216) 983-2200
10
Cleveland Museum of Art
Anonymous
7,500,000
September 2013
Endowment
Trustee
August A. Napoli Jr. (216) 707-2595
10
University Hospitals
Kathleen A. Coleman
7,500,000
Feb. 28, 2013
Kathy and Les Coleman Clinical Trials Center endowment
Generous benefactor, volunteer
Sherri Bishop (216) 983-2200
12
Case Western Reserve University
Char and Chuck Fowler
6,000,000
September 2013
Financial support for outstanding MBA students interested in learning about sustainable values
Alumnus
Lawrence Gibson (216) 368-4352
12
University Hospitals
Barbara P. Ruhlman/The Thomas F. Peterson Foundation
6,000,000
Feb. 15, 2013
Ruhlman Maternal and Fetal Center endowed fund, Ruhlman Peterson renovation fund
Generous benefactor, volunteer
Sherri Bishop (216) 983-2200
14
Cleveland Clinic
Anonymous
5,000,000
June 24, 2013
Heart valve education
Grateful patient
Diana Bulman (216) 444-1245
14
Kent State University
John and Fonda Elliot
5,000,000
April 2013
The College of Architecture and Environmental Design; scholarships, a professorship, a naming gift for the new building, a program fund for Health Care Design
Alumni and member of the board
Gene Finn (330) 673-6002
14
Ursuline College
Anonymous
5,000,000
Feb. 26, 2013
New construction, renovation and endowment
Friend of the college
Kevin L. Gladstone (440) 646-8355
17
Case Western Reserve University
Frank and Jocelyne Linsalata
4,000,000
September 2013
Expansion of Case Western Reserve's alumni house to include space for events and banquets
Alumnus, trustee, campaign committee chair
Lawrence Gibson (216) 368-4352
17
Cleveland Clinic
Anonymous
4,000,000
Grateful patients
Nancy W. McCann (216) 444-1245
17
Summa Health System
Richard M. and Yvonne Hamlin
4,000,000
Donor and patient
Phylis M. Ferrara (330) 375-6640
17
University Hospitals
Anonymous
4,000,000
Generous benefactor
Sherri Bishop (216) 983-2200
21
Cleveland Clinic
Anonymous
3,500,000
Sept. 30, 2013
Liver disease and transplantation
Volunteers, grateful patients
Bishoy Mikhail (216) 444-1245
22
Cleveland Orchestra
George Gund Foundation
3,000,000
March 7, 2013
To permanently endow the George Gund III Fund for Artistic Excellence
N/A
Jon Limbacher (216) 231-7300
22
John Carroll University
Dave and Beth Short
3,000,000
Aug. 29, 2013
In support of the Forever Carroll Campaign
Alumnus, board chair
Doreen Riley (216) 397-1886
22
Southwest Community Health Foundation
Dr. Vasu and Lisa Pandrangi and family
3,000,000
Practicing physician and chairman of the board
Bobbie Simmerman (440) 816-6711
25
Baldwin Wallace University
Estate of Arline Kadel
2,700,000
December 2013
To support the BW Conservatory of Music
Alumna, class of 1936
William J. Spiker (440) 826-2104
26
Cleveland Clinic
Anonymous
2,550,000
Nov. 14, 2013
Cleveland Clinic Innovations, in kind
Corporate donor
Nelson Wittenmyer (216) 444-1245
27
Baldwin Wallace University
Steve and Jackie Boesel
2,500,000
March and December 2013
In support of the Welcome Center, endowed piano scholarship and honors program
Alumnus
William J. Spiker (440) 826-2104
27
Cleveland Clinic(2)
Anonymous
2,500,000
Nov. 12, 2013
Medical education building
Corporate donor
Chris McMahan (216) 444-1245
27
Cleveland Clinic(2)
Anonymous
2,500,000
Aug. 8. 2013 Medical education building
Grateful patients
Armando Chardiet (216) 444-1245
27
Cleveland Museum of Art
Eric and Jane Nord Family Fund
2,500,000
Trustee
August A. Napoli Jr. (216) 707-2595
27
John Carroll University
Smiley Family Charitable Foundation
2,500,000
Alumnus, board member
Doreen Riley (216) 397-1886
32
Baldwin Wallace University
Anonymous
2,000,000
August 2013 Undesignated support
Alumnus
William J. Spiker (440) 826-2104
32
Case Western Reserve University
Bill and Melinda Gates Foundation
2,000,000
support measures to improve immunity to disease January 2013 To among children in developing countries
N/A
Lawrence Gibson (216) 368-4352
32
Cleveland Sight Center
Corinne and Alan Reid
2,000,000
To endow the position of Director of Children and July 10, 2013 Young Adult Services, including the Bright Futures Preschool
Former board member
Patrick J. Ertle (216) 903-5700
32
John Carroll University
Rich and Chris Kramer
2,000,000
Alumni, board member
Doreen Riley (216) 397-1886
To establish an endowment fund to support the donor's January 2013 charitable passions and to address the most critical Longtime donor needs of the community
Oct. 7, 2013 Brunswick Family Health Center June 26, 2013
Support of the Cardiovascular Institute and creation of a hybrid operating suite
Oct. 15, 2013 Pediatric Specialty Clinic construction fund
May 28, 2013 Touch the Future Capital campaign
June 2013
In support of conservation
and Eleanor Smiley Endowed Chair in Oct. 30, 2013 Raymond Business Ethics
Sept. 27, 2013
Forever Carroll Campaign
Source: Information is from the gift recipients with additional research by Crain's. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Donations to religious organizations are not included. (2) These gifts have been split with Case Western Reserve University for the joint Medical Education Building.
Brian R. Frederick (440) 984-7390
RESEARCHED BY Deborah W. Hillyer
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Silver Airways to exit Cleveland market Silver Airways, a ON THE WEB Story from Parkersburg, regional airline based in www.crainscleveland.com W.Va. Fort Lauderdale, Fla., Silver Airways said it plans to exit the Cleveland has operated those flights for nearly market and discontinue flights six years from Cleveland Hopkins Inbetween Cleveland and five small ternational Airport. cities, a move that will affect 89 Dave Pflieger, president and CEO pilots and other employees here. of Silver Airways, said in a news reThe company in a news release lease that “multiple factors have said it has provided the U.S. Departcombined to make it economically ment of Transportation with a federalimpossible for us to continue flying” ly required 90-day notice of its intent between Cleveland and the five marby May 15 to end service between kets. One of the factors he cited was Cleveland and the following communithe recently announced regional ties: Jamestown, N.Y.; Bradford, Pa.; flight reductions at Hopkins by DuBois, Pa.; Franklin, Pa.; and United Airlines. — Scott Suttell This Cleveland Comfort house on Saratoga Ave. in Old Brooklyn is available for rent.
lutheran metropolitan ministry’s
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CONTRIBUTED PHOTO
Stay: Traditional hotel operators say they aren’t concerned about losing business continued from PAGE 4
It’s a side business for both managing partners, as Semertsidis owns Gus’s Family Restaurant in Old Brooklyn and Fronimo works in sales at a technology company he wouldn’t identify. By contrast, Scott Kroehle is part of the Couchsurfing crowd. Kroehle, who fixes up long-term rentals on Cleveland’s West Side, estimates he has hosted a hundred or more people since last summer who found accommodations at his Detroit-Shoreway home via Couchsurfing. Kroehle purposefully set up his space with extra beds and pullout couches to accommodate fellow couchsurfers, and he estimates the house can sleep 10 people comfortably. Couchsurfing differs from Airbnb or a traditional bed and breakfast in more than just price. At Kroehle’s house, no one is waited on and people are expected to clean up after themselves. People even contribute to the space, such as the guests who planted Kroehle a garden, though such payback isn’t required. Kroehle said the benefits of hosting are hard to pin down, but he enjoys “the different worlds that pass through your space,” as he put it. And guests get someone who is interested in showing them the city outside the typical tourist route, he said.
Are hotels worried? Nah Despite the rising interest in alternative accommodations, traditional hotel operators locally and statewide don’t sound particularly concerned about them. Matt MacLaren, president and CEO of the Ohio Hotel and Lodging Association in Columbus, said he knows his counterparts in New York and California are watching these sites closely, but the sites haven’t picked up enough steam in Ohio for him to look at them as competition. The association represents about 500 hotels and lodging properties, and MacLaren said he hasn’t had any hotels come to him and say the sites are an issue yet. Even when the sites do start to
pick up, he sees a need for hotels. “The experience a hotel provides is what sets it apart,” MacLaren said. Alan Feuerman, director of sales and marketing at Westin Cleveland Downtown, which is set to open in May, said he doesn’t see short-term rental sites as a threat to the traditional hotel industry. The customers of a Westin are looking for all the services the brand provides. They want the option to work out, the ability to order room service or access to high-quality technology, Feuerman said — the “modern conveniences” of a 24-hour hotel. Clients of a site such as Airbnb are looking for more of an experience, but there are fewer amenities, he said. “It’s just a different clientele,” Feuerman said. In an email from a marketing contact, Bob Loewen, chief operating officer of the Wyndham Hotel Group, said the hospitality market always will be competitive, but he’s confident guests and hotel owners will see the value of what they offer. The Wyndham Hotel Group lists 23 hotels in the Cleveland region on its website. “Homes, apartments, condos … they’re not hotel rooms,” Loewen said in an email. “The experience becomes very different depending on what a guest chooses. Hotels and hotel brands on the other hand offer consistency. There are brand standards. You know the bath amenities you’re going to receive. You know that if your plane is delayed, there’s going to be someone at the front desk when you arrive — even if it’s 2 a.m. Then there are the added benefits of hotel loyalty programs and the opportunity to receive free stays. The list goes on.”
Unlocking ‘hidden gems’ Jennifer Kramer, communications manager for Positively Cleveland, the region’s convention and visitors’ bureau, said she also doubts the providers of alternative lodging could replace traditional hospitality options. That said, Kramer said she thinks
sites such as Airbnb are great for tourism, and that the real impact of tourists on an economy comes from what they spend at the city’s restaurants, casino and other attractions. The sites just bring more “opportunity to Cleveland,” she said, especially when it comes to attracting millennials. Kramer said that with the websites, travelers typically are looking to live like the locals. “They want to see the hidden gems,” she said. ■
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Above, from left to right, Ken Salmon, operations manager of the Coca-Cola plant in Bedford Heights; Gary Wasil, director of operations and logistics; Pete Benzino, president of Abarta Beverage West and VP/GM of Cleveland Coca-Cola; Phil Smith, warehouse manager; and Randy Cornette, director of sales and marketing. At right, the entrance to the plant.
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REBECCA R. MARKOVITZ PHOTOS
Package: Community is a large part of brand at Coke continued from PAGE 5
“We’re trying to take our brand, our logo and put it into the fabric of the community,� Cornette said. When a customer picks up a Cleveland Coca-Cola product, he or she is supporting more than just the employees at the 220,000-squarefoot bottling plant at 25000 Miles Road. About 90% of the raw materials the bottling company uses to make its containers and the familiar drinks within those bottles and cans come from Ohio companies, said operations manager Ken Salman. Plastic bottles are made in Bowling Green, cans and lids are created in Findlay and labels are produced in Akron. Even the water used in the beverages made on-site comes from Cleveland, Salman said. Benzino said about 70% of what the Cleveland plant sells is made inhouse; some Coca-Cola products, such as Powerade, are produced elsewhere and brought in for shipping. Aside from Coca-Cola products, Cornette said the plant also produces on a contract basis products that include Canada Dry and Country Time Lemonade.
Recycling like crazy Besides its high level of local sourcing, Cleveland Coca-Cola also takes pride in its community involvement and its commitment to environmentalism. According to information provided by the plant, its green commitment ranges from recycling the basics such as aluminum, cardboard and PET bottles to donating 55-gallon syrup drums to the community to use as rain barrels. “We recycle anything we can,� Salman said. And the company makes sure to give back to the community. Cornette said the plant isn’t tied to bud-
gets when it comes to charitable opportunities such as fundraising walks or runs, but can make decisions on such events throughout the year. And there are ongoing community programs, such as the company’s participation in Saint Martin de Porres High School’s corporate work study program. The program helps students at the school, who are often of modest economic means, to pay for a “significant portionâ€? of their education by working about one day a week at local companies, said Devon Lynch-Huggins-Szep, vice president of the corporate work study program at the school. Cleveland Coca-Cola signed on last year and, this year, hired four students in accounting, technical support and administrative positions. Each company in the program pays the school $28,100 for the four students’ work. Lynch-HugginsSzep said she likes that Cleveland Coca-Cola lets students do higherlevel work. The Cleveland Metroparks have been working with Cleveland CocaCola for decades, and the bottling company has been a branded community sponsor of the park system since 1993, said CEO Brian M. Zimmerman. The Metroparks, including the zoo, buy products from the company, and Cleveland Coca-Cola works with the organization on charitable activities, such as the zoo’s DreamNight. Zimmerman noted that the company also has promoted Metroparks activities and locations on its trucks. Zimmerman said it’s significant that the bottling company is an integrated part of the local community. “They get it,â€? he said. “They know us.â€? â–
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Above, workers enter the plant. Above right, a machine checks the cross-sectional analysis of can seam dimensions, a test that is performed daily. Below, Latari Foster observes as 2-liter bottles of Fanta Orange are filled and capped. Right, the filled bottles are transported through the warehouse.
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Window: ‘Software sprawl’ could be big problem for companies continued from PAGE 1
And many organizations that are big enough to have their own IT departments still are working to upgrade to newer operating systems and protect computers that must keep running XP. For instance, Eaton Corp. has converted about 70,000 personal computers to Windows 7 over the last 18 months or so, but the other 4,500 will pose a challenge, according to chief information officer Bill Blausey. Most of those XP computers are spread out across the many manufacturing plants of the Beachwoodbased industrial giant. It’s impossible to upgrade them all at once because the computers run so many different machines and processes. And many of them will need other software upgrades, because older programs often aren’t compatible with new operating systems, Blausey said. “It’s an all-out war, these last few thousand PCs, to get them converted,” Blausey said, estimating that Eaton has 10 to 15 people working to convert computers at any given time. Today, MCPc Inc. has roughly 50 employees helping customers upgrade to newer operating systems, said Ira Grossman, principal consultant for end-user computing at the Cleveland-based IT services company, which has 444 employees nationwide. A year ago, MCPc probably had 10 employees performing operating system upgrades, Grossman said. Though some IT experts who spoke with Crain’s said small businesses and manufacturing companies are the ones that rely the most on Windows XP, Grossman said many large organizations are worried about April 8, too.
KEEP ON ALERT Microsoft plans to stop providing free security patches and technical support for Windows XP users on April 8. A look at three things to watch for in the coming months: ■ Companies throughout Northeast Ohio still use XP, and they could be in trouble after that date. Many IT experts expect hackers to start launching malware designed to exploit XP’s flaws once Microsoft stops fixing them. ■ Microsoft will provide custom XP security patches to companies that pay for it. The service is estimated to cost $200 per computer. ■ Local IT companies say small businesses rely more on XP than large ones. But big companies have more complex computer networks, which often makes it harder for them to leave XP behind. — Chuck Soder
Beware the ‘software sprawl’ Even for big companies with money to upgrade their operating systems and replace older computers that can’t run Windows 7 or 8, the switch poses problems. “Software sprawl” is a big one, Grossman said. Many organizations installed XP more than a decade ago and have acquired all sorts of software programs since then. Some of those programs can’t be upgraded to Windows 7 or 8. Some can be upgraded, but for a fee. And sometimes upgrading one piece of software makes it incompatible with other software, Grossman said. Large companies that didn’t plan well in advance for the Windows XP deadline probably won’t be entirely ready for April 8, Grossman noted.
“The problem was just too big, and I think many organizations waited too long,” he said. Nearly 30% of all Internet traffic from desktop and laptop computers comes from machines running XP, according to data published in January by Net Applications, a web analytics firm in Aliso Viejo, Calif. Although Microsoft says it won’t fix problems with XP after April 8, the company plans to keep updating the anti-malware software it makes for the operating system at least until July 14, 2015. Even so, XP computers running those programs without security patches still will be vulnerable to malware, Microsoft says on its website. The only way to get the security patches is to pay for custom support. But analysts from technology research firm Gartner Inc. last year reported that Microsoft typically charges about $200 per computer for the first year of support. Some companies, such as PNC Bank, need that support. The “vast majority” of the Pittsburgh-based banking company’s ATMs run on Windows XP, according to PNC spokeswoman Marcey Zwiebel, who would not provide details about the contract or “plans for a potential future changeover.”
Meanwhile, at your ATM … Almost every automated teller machine that Diebold Inc. has shipped since 2003 runs on Windows XP, as is the case with most ATMs, said Dean Stewart, senior director of self-service product management for the maker of ATMs and financial security products based in Green. Stewart expects ATM owners to take extra steps to protect the machines by April 8. For its part, Diebold already removes several
unneeded features from XP before installing it on the computers that run its ATMs, which limits the number of ways hackers could get into the system, Stewart said. Plus, Diebold’s ATMs don’t connect to the public Internet; they tie into private networks owned by banks, which tend to be heavily fortified. Even so, Diebold for more than a year has been trying to educate its customers about Microsoft’s plans to end most support for XP and what they can do about it. Stewart said a quick upgrade isn’t possible for most Diebold customers, given the amount of software upgrades and testing that would be required. “A change like this is pretty monumental,” said Stewart, noting that Diebold released a Windows 7 version of its ATM software a year ago. Diebold has upgraded about 80% of its own computers to Windows 7 over the past two years, said spokeswoman Kelly Piero. The company plans to upgrade the rest before the April deadline, she said. Other big local organizations still working on upgrades include the University of Akron — which has upgraded most of its 10,000 computers but still has a few hundred left — and Cuyahoga County government, which has converted 3,000 PCs already and has about 185 to go. In many cases, the computers were so old they had to be replaced, said county chief information officer Jeff Mowry.
What about the little guys? However, small businesses probably rely on XP more than their larger counterparts, IT experts told Crain’s. Among them are many manufacturers that still use old computers on the shop floor, said Bob Coppedge, CEO of Simplex-IT in Hudson.
“With manufacturing, it’s obsolete when it stops turning on,” said Coppedge, who’s organizing a public going- away party for Windows XP at the Kent Stage theater on April 8. Some computers that run machines can be isolated from the Internet and other computers on a company’s network, and computers that need to send data to a single website can be programmed so they can’t connect to other sites, he said. Companies even can put glue into their USB ports if they’re worried about getting hacked from the inside — but many should just upgrade, Coppedge said, laughing about how out-of-date many manufacturing plants are. Companies that don’t upgrade are “missing out on things the new stuff can do, anyway,” said Bill Mathews, chief technology officer at Hurricane Labs, an IT security firm in Independence. But some small companies just don’t want to switch, Mathews said. “People insist on running antiquated software, and I don’t know why,” he said. Mathews isn’t among those in the business who, as he put it, “foresee some big atomic bomb dropping in April.” And if hackers do pounce on that date, Microsoft might go back on its word and provide at least some free security patches to XP users, he said. That’s possible, but Joe Kirby isn’t counting on it. The director of IT for Infiniti Systems, an IT services company in Brecksville, said he wants his clients to be prepared if the Internet does indeed “become a cesspool” of XP malware, like he anticipates. “We figured we’d rather be safe than sorry,” Kirby said. ■
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THEINSIDER
THEWEEK FEBRUARY 10 – 16 The big story:
Cleveland Browns owner Jimmy Haslam said the organization that was set up by CEO Joe Banner less than 14 months ago was “cumbersome.” Haslam’s solution was to blow it up — again. In a shocking chain of events even for the Browns, the team on Feb. 11 announced that assistant general manager Ray Farmer was promoted to general Banner manager, Banner will step down “in the next two months” and GM Mike Lombardi was fired. The moves occurred 19 days after the Browns hired Mike Pettine as head coach.
New in town: For the third time in its history, the Federal Reserve Bank of Cleveland will be led by a woman, as the Cleveland Fed has named an out-of-towner to succeed longtime president Sandra Pianalto. Loretta J. Mester will assume those duties come June 1. Pianalto will retire from the Fed on May 31 after leading the Cleveland district since 2003. Mester, 55, currently serves as executive vice president and director of research at the Federal Reserve Bank of Philadelphia. In this role, she is the bank’s chief policy advisor and attends meetings of the Federal Open Market Committee.
Mine control: Cliffs Natural Resources Inc. of Cleveland, under pressure from an activist shareholder to split up its business and install an outsider as CEO, pushed back. The producer of iron ore and metallurgical coal on Feb. 13 appointed Gary B. Halverson, 55, formerly president and chief operating officer, to president and CEO, effective immediately. Halverson joined October last fall, when Cliffs announced that president and CEO Joseph Carrabba would retire. The shareholder, Casablanca Capital, announced on Feb. 12 that it was backing Lourenco Goncalves, former CEO of Metals USA, to be the next CEO of Cliffs. It sent Cliffs a letter notifying the company of its intention to nominate a majority of directors to Cliffs’ board at the 2014 annual meeting. Message conveyed: Auto parts and tire maker Continental AG of Germany agreed to acquire Veyance Technologies Inc. of Fairlawn, a maker of industrial hoses and conveyor belts, from The Carlyle Group for 1.4 billion euros, or about $1.9 billion. Veyance, a Goodyear Tire & Rubber Co. spinoff formerly known as Goodyear Engineered Products, recorded sales of about $2 billion in 2013. About 90% of its sales come from outside the automotive industry — a key diversification step for Continental. Veyance has 27 plants around the world and a work force of about 9,000 employees. New Frontiers: Frontier Airlines said it will expand its schedule of flights from Cleveland Hopkins International Airport in June with direct flights to Orlando and Seattle, in what Cleveland officials hope is just the first step in the airport’s recovery from the impending loss of United Airlines flights. The airline last week also began flying previously announced service between Cleveland and Trenton-Mercer Airport in Ewing, N.J., near Philadelphia To herald its new, expanded presence in Cleveland, Frontier for a brief time will offer a $69 one-way fare to Orlando and a $119 one-way fare to Seattle. This and that: Aleris, an aluminum recycler and producer of rolled and extruded aluminum products, signed a definitive agreement to acquire Nichols Aluminum LLC, a subsidiary of Quanex Building Products Corp., in a $110 million all-cash transaction. …Bob Herbold, a former chief operating officer at Microsoft Corp., committed $2.6 million to Case Western Reserve University, his alma mater, to endow a professorship in informatics and analytics.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Brokaw’s neuroSLEEP campaign is no sleeper ■ Cleveland ad agency Brokaw has a bit of a sleeper hit on its hands. The agency’s campaign for neuroSLEEP, a sleep-enhancing beverage, features a web video starring Neil Patrick Harris that debuted Feb. 11 and as of last Friday afternoon, Feb. 14, had garnered nearly 1 million views on YouTube. (That’s not surprising. The soulful song is steamy/catchy, and everyone loves NPH. You can view the video at tinyurl.com/p7cy9ly.) Harris The Harris video isn’t the only unusual element of the campaign, which also features, as Brokaw puts it, “smooth-talking Pandora radio and in-flight TV spots developed specifically for Virgin America, enticing “virgin” flyers to finally get some (we mean sleep, perv).” If the product sounds familiar, maybe you were watching Jimmy Kimmel’s late night show on Feb. 4. A segment on the show that night featured neuroSLEEP, Kimmel’s sidekick Guillermo, a model in a bikini and a burrito. The segment “timed-up with two 15-second bookend commercials, written and produced” by Brokaw, the agency said. — Scott Suttell
So long, democracy; hello, triumvirate ■ For the first time since Frantz Ward LLP’s
MILESTONE
founding in 2000, a democratic process won’t be the way the law firm’s partnership governs. That’s not to say democracy is dead, though, as the firm’s first management committee was elected by the firm’s partners. Frantz Ward announced last week that partners T. Merritt Bumpass Jr., Michael J. Frantz and Christopher G. Keim now are its management committee, responsible for establishing the firm’s strategic direction and its day-to-day operations. All three will continue to provide legal services to their clients. According to a spokeswoman, “the change in management structure is focused on continuing to grow and maintain the success of the firm, and directing the firm’s future growth, all while maintaining the entrepreneurial spirit of the firm.” Fourteen years ago, Frantz Ward counted 15 attorneys; today, it employs 105, including 35 partners and 60 attorneys. — Michelle Park Lazette
Shopping center buyer strikes again in Mentor ■ Devonshire REIT Inc., a real estate investment trust in Whitehouse, Ohio, near Toledo, likes Mentor so much that it bought a second open-air shopping center there last week. Through an affiliate, Devonshire paid $18.35 million for Erie Commons, which is across the street from Great Lakes Mall and features Burlington Coat Factory and JoAnn Stores among its anchor tenants.
Slicing into her business
Edgar L. Ostendorf and Warren L. Morris shared a vision of downtown growth and redevelopment in Cleveland that sparked an idea for one firm specializing in various real estate disciplines — brokerage, property management, financial services and appraisal. In 1939, they formed the Ostendorf-Morris Co. to provide those services. Today, as Ostendorf-Morris celebrates its 75th anniversary, the company lays claims to being the largest full-service independent brokerage firm in Ohio. Over the years, O-M brokers have facilitated countless transactions. They include management and exclusive leasing of the 406,000-square-foot Illuminating Building at 55 Public Square (1957); 683,000 square feet at 100 Erieview Plaza (1964); land assembly for the Gateway sports complex, current home to the Cavaliers and Indians (1980s); Goodyear Tire & Rubber Co.’s sale and leaseback redevelopment of 639,000 square feet (2008); and the firm’s recent joint venture with Corpus Sireo, Germany’s largest asset management company with $20 billion under management (2012). O-M’s Corporate Services group, established in 1988, has provided global transaction management and consulting to Fortune 1,000 companies and middle-market clients. For information, visit www.ostendorfmorris.com.
Kent State steps forward with podiatric school dean ■ Kent State University has named Dr. Allan M. Boike, a nationally known podiatrist with the Cleveland Clinic, as the new dean of its College of Podiatric Medicine. Boike, who will start his new job July 1, currently serves as head of the podiatry section in the foot and ankle center of the Clinic’s Orthopaedic and Rheumatology Institute. He also is director of the Clinic’s podiatric residency training program. Boike will take over for Bryan Caldwell, who has served in an interim capacity since last October. Caldwell, who will return to his position as the college’s assistant dean, took over last fall for Thomas V. Melillo, who died after a battle with cancer. — Timothy Magaw
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
COMPANY: Ostendorf-Morris OCCASION: Its 75th anniversary
The center changed hands Feb. 12, according to online property records of the Lake County auditor. The seller was Optimus Erie Commons LLC, an investor group led by shopping center investor Joseph G. Padanilam in Aurora. Erie Commons, 7900 Plaza Blvd., adjoins Great Lakes Plaza and an open-air shopping center that a Devonshire affiliate acquired last November from Indianapolis-based Simon Property Group. Padanilam said Erie Commons was on the market because he saw a chance to produce a strong return for his investors. “We did well. We paid $13.75 million for it and sold it for $18.35 million,” Padanilam said. Devonshire did not comment on the deal. — Stan Bullard
■ The rise of online ordering is putting in peril corner pizzerias such as Geraci’s Restaurant in University Heights. So said The Wall Street Journal, which reported that as big pizza chains “have invested in sophisticated web-based systems that let customers order and pay for deliveries quickly without having to call,” they’re gaining an edge “in the battle for an ever-bigger slice of the industry pie over smaller chains and independent pizza shops that lack the capital or technological know-how to compete on the web.” Giants such as Domino’s, Papa John’s and Pizza Hut “all now derive 40% or more of their sales from digital orders,” the newspaper reported. For Geraci’s, the number is zero. Frannie Geraci, co-owner of Geraci’s, told The Journal that her sales have declined 20% in the past two years as chain pizza shops and other franchises have moved into the neighborhood. Geraci “estimates she could boost sales by 30% if she offered delivery and online ordering, but she says she can’t afford the cost,” according to the story. “I know I’ve lost younger customers,” said Geraci, whose parents opened the restaurant 58 years ago.
Block buster ■ Apple pulled the popular Bitcoin app Blockchain out of its mobile marketplace without explanation, and a Cleveland auctioneer was among those not happy about it. CNNMoney.com reported that the Blockchain app, downloaded 120,000 times during its two years in Apple’s iTunes App Store, “was the most popular way for people
and companies to transfer bitcoins from one another.” Apple removed it from the store Feb. 5, saying in an email that it had an “unresolved issue” with the app, but otherwise not explaining the decision. Bitcoin users see Apple as a bully. “It is as if IBM would have banned email clients in the early 90’s,” said Michael Kondratov, president of Aspire Auctions in Cleveland and Pittsburgh. Kondratov recently started allowing customers to bid on antiques and art using bitcoins. “I feel Apple is no longer a ‘rebel’ company,” he wrote in an email to CNNMoney.com.
A read on literacy ■ An annual study of American’s most literate cities has Cleveland holding steady, at No. 14 nationwide. The study by John W. Miller, president of Central Connecticut State University, focused on six key indicators of literacy: number of bookstores, educational attainment, Internet resources, library resources, periodical publishing resources, and newspaper circulation. The top five: Washington, D.C.; Seattle; Minneapolis; Atlanta; and Pittsburgh. Cleveland has been No. 13 or No. 14 on the list in each year since 2006. (Say this about Clevelanders: We’re a stable bunch.) In the rankings by category, Cleveland fared best in library resources — we’re No. 1 in that — periodical publishing resources (tied for No. 3) and newspaper circulation (No. 9; thanks, Cleveland!). The city fared worst in the educational attainment category. The top-ranked Ohio city in the overall rankings was Cincinnati, at No. 12. Columbus was No. 26.
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