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VOL. 37, NO. 8
FEBRUARY 22 - 28, 2016
Business of Life
TV: Cavs are monster draw Team, Fox Sports Ohio on record pace
Mixed martial arts
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Strong Style thrives by bulking up its offerings
REAL ESTATE: Key deal? Towering building could be sold soon
P. 24-25
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CLEVELAND BUSINESS
RETAIL: Vacancies on rise But local industry stays optimistic P. 7
Welcome to the energy battle of Ohio
NEO’s largest retirement communities P. 31
Each side is sure the Public Utility Commission of Ohio will rule in its favor, but only one can win
BY DAN SHINGLER
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And welcome to the heavyweight battle of the modern era at Ohio Energy Regulation Arena. The matchup is sure to be a bruiser, and both corners say they’re confident they can win the huge purse represented by Northeast Ohio’s future electric rates. There are hundreds of millions, if not billions, of dollars at stake, and one way or another, most area businesses and residents will be guarantors for the prize money. In the blue corner, weighing in with 2,000 good-paying Akron-area jobs, 6 million customers and $52 billion in company assets — from Akron, Ohio, the successor to Ohio Edison, Centerior Energy and Cleveland Electric Illuminating, and a powerhouse with 17,000 megawatts of generating capacity: FirstEnergy Corp. In the green corner, fighting for the health of the planet, the economy, Ohio ratepayers and the future of all mankind — backed by a body of out-ofstate generators, muscular transmission arms, free marketers and environmentalists: The Opposition. Yes, this is about as exciting as Public Utility Commission of Ohio cases get — and if you’re not buying a ticket to see whether FirstEnergy gets its requested rate guarantee from the PUCO, then you’re missing out on some action that’s bound to affect you later. SEE ENERGY RATES, PAGE 9
GCP and COSE settling in BY JAY MILLER Entire contents © 2016 by Crain Communications Inc. jmiller@crain.com @millerjh
Boxes littered the offices and cubicles of the third floor of the Playhouse Square headquarters of the Greater Cleveland Partnership and the Council of Smaller Enterprises last week as staff prepared for a new floor plan that will bring together COSE and GCP units that have oper-
ated separately for several decades. The first wave of moves was scheduled to begin Friday, Feb. 19. Over the next several weeks, nearly everyone’s office location will change as the two joined-at-the-hip business advocacy and business service groups continue to search for a winning strategy in the face of a steep, decade-long membership and revenue decline at COSE. The organization’s leadership will discuss the changes, which have
been underway for several months, at the COSE annual meeting Feb. 24 at the Near West Theatre in the Gordon Square arts district. Members will hear how COSE is being folded more closely into GCP. They will hear about a strategy that envisions the consolidated organization focusing more on advocating public policy positions at the local, state and federal levels — a GCP strong suit — than on selling the SEE GCP, PAGE 28
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z FEBRUARY 22 - 28, 2016 z CRAIN’S CLEVELAND BUSINESS
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Win-win for Cavs, FSO John Ourand, a media reporter for SportsBusiness Journal, cautions that making year-to-year ratings comparisons at midseason can be misleading, because a current schedule might have been frontloaded with appealing matchups and/or home games. “You always have to be a little wary of that,� Ourand said. The Cavs, however, would seem safe in that regard, considering their nearly month-long run of 12-plus ratings on Fox Sports Ohio and that their TV numbers have tended to rise throughout the season since LeBron James returned prior to the 2014-15 campaign. Last season’s average Cavs rating
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The Golden State Warriors are on pace to break the all-time wins record set by Michael Jordan’s Chicago Bulls 20 years ago. But off the court, and especially on TV, the Cleveland Cavaliers — whom the Warriors knocked off in the 2015 NBA Finals — likely will go down as one of the most formidable teams of the last two decades. Entering a home game against the Detroit Pistons on Monday, Feb. 22, Cavs broadcasts on Fox Sports Ohio have averaged a 9.87 rating, which is the best in the league and a 35% year-over-year jump. And if the ratings continue to climb — the norm has jumped almost a half a point in the last few weeks — the Cavs, according to Fox Sports Ohio, will break the 2010-11 San Antonio Spurs’ league record for local TV ratings. That Spurs team posted a 10.19 ratings average. “I think it’s the passion of the fans. I think it’s that simple,� Fox Sports Ohio senior vice president and general manager Francois McGillicuddy said of the network’s monstrous Cavs numbers. The appetite for Cavs programming is so strong that even Fox Sports Ohio’s postgame broadcasts, which were doubled in time to an hour prior to this season, are generating a 4.4 rating and being watched by more than 65,000 households in the Cleveland designated market. That’s a 46% year-over-year in-
crease, and it’s a half-point ahead of the average rating for an Indians game broadcast in 2015. Fox Sport Ohio’s nine-game streak of broadcasts with a rating in double digits has tied the 2010-11 Spurs’ NBA record, according to the network. Cavs games in that span, which started Jan. 25, have averaged a 12.2 rating and been watched by more than 182,000 households each night. “It’s not surprising,� McGillicuddy said of the eye-opening numbers. “I think we work in a market where what we’re seeing with live sports is just magnified. Cleveland is a great sports town. “Television advertisers are drawn to big-event, live TV. The Cavs are big-event (broadcasts), and multiple days per week.�
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on FSO jumped from 7.45 at the AllStar break to 7.94 at the end of the regular season. Ourand said something he’s noticed in his years of covering sports TV is that when teams have success, it’s often reflected in the following season. The Cavs seem likely to top their 2014-15 TV ratings by more than two points this season. “One thing I found is it takes almost a year for that to take hold,� Ourand said. “So it doesn’t surprise me that it’s up from last year. They started building on what they did last year, and there’s a lot of promise behind that. Maybe people invested the last half of last year and they are investing earlier this year.� Prior to this season, Fox Sports Ohio extended a multiyear option to keep Cavs games on the network through the 2020-21 season. Ourand believes the deal is worth between $35 million and $38 million per year, and Cavs sources have told Crain’s it’s one of the NBA’s five richest local TV contracts. “It’s a good deal for the Cavs,� Ourand said. “It’s unlikely the Cavs could start their own RSN (regional sports network). There’s not a lot of competition out there for those rights. To get that kind of rights fee from Fox, that’s great for the team.� It’s also worked out well for the network, whose ad inventory, even with the extra time carved out for pre- and postgame shows, was almost sold out prior to the 2015-16 season.
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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 22 - 28, 2016 z PAGE 5
s e on TV, too c ord, top league mark The Cavs’ draw has been so substantial that it’s rivaled the mid1990s Indians, who were an annual World Series contender during a period in which the Browns had left for Baltimore and the Cavs didn’t have the star power of James. According to Fox Sports Ohio, the 1996-2001 Indians had an average rating of 9.3, topped by a 10.2 norm in 1999. (The ratings data only dates back to 1996, a period that excludes the Tribe’s 1995 World Series club.) “Sports has become the most consistent draw for a large, live audience,” McGillicuddy said. “And these ratings have shown that point.”
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The draw of a contender The Timofey Mozgov-sized TV ratings obviously haven’t affected the Cavs at the gate. The defending Eastern Conference champs entered Feb. 22 having sold out each of their 78 games at Quicken Loans Arena, including the playoffs, since James’ return. And the secondary ticket market has been every bit as good as it was during the euphoria that surrounded LeBron coming back in 2014-15, with one exception, said Mark Klang, owner of Amazing Tickets Inc. in Mayfield Heights. The demand for James’ first game back in a Cavs uniform in 2014 “was so unique we’ll never see that again,” Klang said. If you take away the 2014-15 opener, though, the ticket broker said this year’s Cavs have measured up on the secondary market. “It’s really strong, just like it was last year,” Klang said. “Our numbers are almost identical.” Klang added that Amazing Ticket’s sales during December, when Cavs seats can be coveted holiday buy, were up 25%. “Obviously, once they win, people go crazy,” he said. “It keeps people hungry. They gained so much interest during that run last year. It really carried over to this year.” The Cavs’ social media and digital numbers — which consistently rank among the top five in the league — have reflected that, too. And while Ourand and many others attribute much of that to James’ presence, McGillicuddy believes the franchise’s pull isn’t just about one of the world’s most popular players. “I think it goes beyond LeBron,” the Fox Sports Ohio GM said. “I think Cleveland fans can sense a possible championship is near. That has to have an influence.”
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Volume 37, Number 8 Crain’s Cleveland Busi ness (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 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: 212-2 210-0 0750
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A towering transaction is looming for downtown Cleveland, as Key Center owner Columbia Property Trust is in talks with a prospective buyer for the 57-story skyscraper, the tallest in Ohio, and its attached Marriott hotel. That’s the word directly from Nelson Mills, the Atlanta-based company’s president and CEO. Mills said Columbia is in talks with what he called “awarded buyers” for the 1.3million square foot office building and 400-room hotel, as well as two other office buildings outside Ohio that it is marketing for sale. According to the Seeking Alpha transcript of the publicly traded real estate investment trust’s Feb. 12 conference call on its 2015 year-end results, Mills noted he anticipates “these sales will close within the next couple of months and at that time, we’ll be able to provide more color on the process.” Tripp Sullivan, Columbia’s spokesman, said in an interview with Crain’s, “We can’t say any more. Buyers are doing due diligence on all three” properties. David Browning, managing director of CBRE’s Cleveland office, said he senses a deal is in the works but doesn’t know who the anointed bidder might be. “We’ve been approached by people from all across the country looking at it,” Browning said of suitors seeking information on the Cleveland office market and Key Center. “Now it’s gone quiet. That’s a sign a purchase may be in the works.” Public records hold a potential clue that a deal’s afoot for the property on the northern side of Public Square. A new limited liability corporation
called “Key Center LLC” was formed Feb. 1, according to records in the Ohio Secretary of State’s office. The agent for the corporation is BakerHostetler lawyer Albert T. Adams, the filing indicates. Adams did not return three phone messages and an email from Crain’s asking why the company was formed. If Adams formed the LLC for a potential Key Tower and Marriott deal, his connection could be from national real estate interests or local ones.
“Now it’s gone quiet. That’s a sign a purchase may be in the works.” David Browning, managing director of CBRE’s Cleveland office, after saying his group had previously been approached by people nationwide about Key Center Among multiple public company boards on Adams’ résumé, he was in the past a director of Beachwoodbased DDR Corp. and of Associated Estates Realty Corp. until the Richmond Heights company was purchased last April by Brookfield Property Partners of Toronto. However, Adams also has been involved in private equity deals. Most local observers downplay the possibility the buyer will have local roots. Out-of-town and foreign investors are dominating the commercial property market nationally. Moreover, the 1 million-square-foot
office building has about 200,000 square feet of vacant office space, which will require substantial efforts to fill with new tenants and big investments to renovate offices for them. With a stainless steel top visible from suburbs throughout the Cleveland area, Key is one of Cleveland’s trophy buildings. When opened by the late Richard and David Jacobs in 1991, it was the tallest office building between New York City and Chicago, though it lost that status years ago. The property’s 400-room hotel also was sought by government and civic boosters to add a national name and reservation system to put the city’s hospitality market on the map. Always home since it opened to financial consultant Deloitte and toptier law firms such as Squire Patton Boggs, formerly Squire Sanders & Dempsey, as well as Thompson Hine, the building is known for toptier rents. It also serves as the headquarters for KeyCorp, whose predecessor, Society Corp., served as the anchor tenant that supported construction of the project. Experts expect the high-rise to command a strong price, though not the kind of premium being paid for properties on the coasts. A predecessor company of Columbia purchased the property in two steps — half in 2005 and the remainder in 2009. Cuyahoga County assigns the high-rise and hotel a market value for tax purposes of $231 million, although local records do not disclose a sale price for it. According to its Securities and Exchange Commission filings, the REIT paid $289 million for it. Alec Pacella, managing partner of Beachwood-based NAI Daus, said, “It’s going to take a good dollar to get that thing if it sells.”
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Retail vacancy is up; optimism is, too BY STAN BULLARD sbullard@crain.com @CrainRltywriter
Reflecting the up-and-down nature of contemporary bricks-andmortar retailing, vacancy in Northeast Ohio shopping centers and large freestanding stores rose to 10.4% this year from 9% a year ago, according to CBRE Inc.’s just-completed survey. However, Brandon Isner, CBRE Cleveland’s research manager, said momentum in the market is positive because retail vacancy is improving after hitting 11.3% in mid-2015, as landlords made headway filling recently vacated space. The rise in vacancy is due to shutdowns such as 28 stores closed by the troubled RadioShack electronics chain last year. Some of the vacancy is lingering as retailers flock to better-performing areas from poorer ones nearby, said Jennifer Priest, a CBRE retail marketing manager in Akron. Vacancy, though, remains well below the 12.7% peak in the region in 2012. Big picture, Thomas Flynn, a senior vice president in CBRE’s Akron office, said, “Everyone thinks it’s a very positive situation. The A (or best) trade areas are as good as they have ever been, while the C trade areas are getting worse.” The other reason for additional vacancy is that real estate developers and retailers are building again. For instance, the Cabela’s outdoor sports chain and home improvement retailer Menard’s are entering the region with stores rising in Avon, and the Costco warehouse chain is expanding with a Boston Heights store, its fourth in Northeast Ohio. Menard’s plans more stores here, and Meijer has lined up sites for its combination market stores, though it has not yet started building any, according to CBRE. CBRE estimates more than 1 million square feet of selling space is being built in Northeast Ohio. Another 2 million square feet is in the planning stages at sites where retailers or developers have bought land or received building approvals but not yet started construction, CBRE said. Keith Hamulak, a CBRE vice president, said, “Those are 2008-style numbers. We’re back to a million square feet of space — or more — being added yearly to the market.” CBRE in this report shifted to reporting on trade areas and dropped reporting on a county-by-county basis. The result? The report for the first time shows graphically which retail districts are prospering, and which
are failing. The best-performing areas — where rents, sales per square foot and occupancy are highest — are Beachwood, with 2.9% vacancy; Great Northern Mall and North Olmsted, 2.6%; SouthPark Mall and Strongsville, 2.5%; and Summit Mall and Fairlawn, just 1.6%. In these areas, there is a supply problem, said Stephen Taylor, a vice president in CBRE’s new restaurant/retail practice group, because retailers face challenges finding space. That also explains expansions such as the 80,000 square feet going in at Beachwood Place in Beachwood.
Conversely, other areas are glutted with empty stores. Among those is the Cleveland Heights-University Heights and South Euclid area — dubbed Severance-South Euclid by CBRE — which has 38.5% vacancy; Bedford, 34.6%; Willoughby, 24%; Midway Mall-Elyria, 17.8%; and Brunswick-Medina, 17.3%. Those stories are familiar: the Severance-South Euclid market has been roiled by vacancies and foreclosure proceedings at two large, newer centers at Severance Town Center in Cleveland Heights and University Square shopping center in University Heights. “We’ve got a ton of older centers
in market areas where landlords can’t give the space away,” Hamulak said. The report also shows how retailers are gravitating from some areas to others to serve similar clienteles. For instance, the high-vacancy Midway Mall-Elyria area is surrounded to the east by the bustling Westlake-Avon trade area, with vacancy of just 5%, and to the west by the Lorain County-Amherst area, at 11% vacancy. By going to reporting by trade area instead of counties, CBRE believes it will provide more meaningful information to its clients, said David Browning, managing director of
CBRE’s Cleveland office. For its report, CBRE identified a total of 40 trade areas in the region formed by Cuyahoga, Geauga, Lake, Medina, Portage, Stark and Summit counties. The survey covers shopping centers and free-standing stores above 50,000 square feet. The largest trade are, with 4.8 million square feet of rentable space, is the Belden Village area in Stark County (4.9% vacancy), which is even bigger than the Great Lakes Mall-Mentor area with 4.2 million square feet (5.8%). The smallest trade area is 117,000 square feet in the IndependenceRockside Road area (16.5%).
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As oil prices sink, lenders’ concern rises BY JEREMY NOBILE jnobile@crain.com @JeremyNobile
Tanking oil prices are sapping revenues for companies supported by that sector, and that’s likely to spell trouble for lenders and the companies backed by their financing. And that trouble for lenders, who are growing increasingly concerned about their loans tied to the oil and gas industry, could further exacerbate financial hardships for companies — particularly those ancillary businesses providing materials and services to the energy sector that Ohio investors tend to lend to even more than producers. “If you’re a banker that has oil and gas assets in your portfolio, you’re definitely nervous right now,” said Tom Pratt, managing director at Applied Business Strategy, a Clevelandbased consultancy that works with banks on restructuring troubled assets. Many banks in Ohio and across the country have reported beefing up reserves in anticipation of more loans going bad, particularly some of the nation’s largest companies. The overall exposure is relatively small. The largest U.S. banks — such as JPMorgan Chase & Co., Morgan Stanley and even the largest banks in Northeast Ohio, including KeyCorp, Huntington Bancshares and PNC Financial Services — have between just 1% and 5% of their total loan portfolios in oil and gas. PNC, for example, like most others, saw loan charge-offs creep upward in the fourth quarter and added millions to its $2.6 billion energy port-
folio. Experts say the outlook for the energy market is causing concern for lenders who are likely to pull back from the oil and gas sector and may generally alter lending behaviors even if the market begins to rebound. And that could take anywhere from a couple months to a couple years. Despite the minimal exposure, investors are showing more concern, and the uncertainty in the market even has investors in the banks themselves stressed. “The market sold off the shares of many banks because they are worried about their underlying energy loan portfolios,” said Brent Luce, a senior portfolio manager at Carnegie Investment Counsel in Pepper Pike. “In some cases, they seem to be throwing the baby out with the bath water.”
Vicious cycle Banks have been generally lenient with loans to oil and gas companies and related businesses because of the volatility of the market and the flexibility available for managing those loans, analysts say. Some analysts, meanwhile, say that federal regulators are pressuring the Office of the Comptroller of the Currency to go easy on banks exposed to the sector right now and to not penalize them in a knee-jerk type reaction. Yet, as companies recalculate the value of reserves banks lend against around April, those values are expected to sink. As a result, lenders could pressure those companies to pay their loans back faster as the credit tightens, said Bill Frazier, managing director at Cleveland’s
VENTURE CAPITAL FIRMS FEEL THE PAIN, TOO Banks won’t be the only financers impacted as the oil and gas sector struggles. Venture capital and private equity “fell in love” with the oil and gas sector through the last decade, said Bill Frazier, managing director at Cleveland’s Raintree Capital Partners. Aggressive lending terms started materializing as the sector flourished just a few years ago, particularly to companies owned by private equity firms. As investors absorb losses, the next wave could hit banks with large exposures to private equity funds heavily exposed to oil and gas. Those
Raintree Capital Partners. Meanwhile, as exploration slows, the number of active drilling rigs will fall, too. Less drilling activity means less demand for products and services from the supporting industries prominent in Northeast Ohio and across the state. The oil and gas sector has fluctuated plenty over the years, but the last time the market dipped similarly to levels seen today was back in the late 1980s. “Based on historical precedent, you’ll probably see some immediate and dire weaknesses in portfolios for banks lending to the oilfield sector, and in general you will see banks retreating from oil and gas lending for a period of time,” Frazier said. Some of these troubles already are beginning to play out. Last week, for instance, BNP Paribas, France’s largest bank, announced plans to stop lending entirely to struggling oil and gas companies in the United States.
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tend to be the highest leveraged and have the most aggressive terms, and those will be the first ones to see losses, Frazier said. “If a private equity firm loans in to, or makes an equity investment in an oil and gas company, if they back that up with debt, they’re the ones who will capitulate first,” said Tom Pratt, managing director at Applied Business Strategy, a Cleveland-based consultancy. “We’re seeing that now,” Pratt added, referencing a particularly private equity lender. “They haven’t felt the pain yet, but they will probably take a significant hit.” — Jeremy Nobile
Another factor in the lending squeeze is that several old loans are coming due this year, said William Schonberg, a partner at Benesch who works with borrowers and lenders on restructuring loans. There was a surge of lending around 2010, when the price of crude pushed close to $100 a barrel, he points out, as drilling activity skyrocketed. “Now those loans are maturing when the ability of the borrower to service those loans is now in jeopardy,” Schonberg said. “If banks enforce payment, a lot of those borrowers are going to go bankrupt. They just won’t have the capacity to repay or refinance.”
‘You’re going to see consolidation’ While lenders have been and continue to be creative in allowing flexibility in repayment, how long that could continue for lenders isn’t
clear. After all, not all banks perform the same way. “It’s very likely banks will be more conservative going forward with respect to lending affected by this industry— and not just reserves-based lending, but any business largely dependent on the oil and gas industry will be affected by the swings in commodity prices,” said Glenn Morrical, a partner at Tucker Ellis who works closely with banks and oil and gas companies. Schonberg, though, points out that lenders are better equipped to manage troubled loans and have developed techniques to protect themselves and maximize recovery in a distressed environment. But the squeeze is still painting a scary picture for the outlook for the affected companies. According to a Feb. 16 report by auditing and consulting firm Deloitte, about one-third of oil producers across the world are at particularly high risk for falling into bankruptcy this year as cash flows stall. As those companies flounder, the supporting industries that populate Ohio will equally be at risk as demand for services sinks along with production. “And those servicing companies tend to have balances that aren’t as strong (as the producers),” said Pratt, who’s currently working with a struggling exploration company in Houston. “You’re going to see consolidation. You’ll see bankruptcies. Otherwise, you’ll see liquidation.” “Things are definitely going to get worse before they get better,” he said.
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ENERGY RATES CONTINUED FROM PAGE 1
The bottom line seems fairly simple: FirstEnergy wants the PUCO to give the company the authority to have its distribution arm enter into “power purchase agreements” with its power plants. For that to work, the PUCO and eventually the Federal Energy Regulatory Commission must approve special “riders” that will increase what ratepayers pay for their electricity. The PPA would ensure that FirstEnergy can continue to operate some of its older plants, knowing their power could be sold at a guaranteed price. Two out-of-state power plants in which the company owns a small stake are involved, but what’s really at the heart of the matter is FirstEnergy’s Davis-Besse Nuclear Power Station near Toledo and its coalfired W.H. Sammis plant in Stratton. Falling prices for renewable energy and especially natural gas have put those plants in a position where they can’t compete in the open market — and other power providers are telling the PUCO that they want to sell into Ohio’s market at market rates. Houston-based Dynegy Inc. and Chicago-based Exelon Corp. both have testified against FirstEnergy, claiming its plan could prohibit them from selling cheaper power to Ohio customers. Even the operator of the power grid for Ohio and much of the Northeast United States, PJM, has come out against FirstEnergy’s plan as being potentially “anti-competitive.” “That’s rare,” said David Schlissel, director of resource planning analysis for the Cleveland-based Institute
for Energy Economics and Financial Analysis, which also opposes FirstEnergy’s proposal. “What’s significant about this case is we’ve got the big generators on our side.” But FirstEnergy and its supporters argue that the plants might be the cheapest source of power in the future, which could be the case if natural gas prices rise significantly. FirstEnergy says, based on its predictions of future energy costs, that its plan ultimately could save Ohio ratepayers more than $500 million in future energy costs. “It (the power purchase agreement) is basically providing a hedge mechanism for ratepayers as we go forward into the market with generation. That hedge limits price increases and price volatility going into the future, and I think that’s a real benefit for our customers,” said Bill Ridmann, FirstEnergy’s vice president of regulatory affairs. “As (natural) gas prices rise, there are other types of fuel and generation sources out there that will be more stable and beneficial to our customers.” That includes, he said, the cheap coal and uranium that the FirstEnergy plants in question are using now. Opponents say that’s hogwash. Prices for renewable energy sources, especially solar power, have been falling precipitously in recent years and show no signs of going back up. The nation is awash in shale gas and that’s not likely to go away, either, they say. Those opposed to FirstEnergy’s plan say it will only keep a few dirty coal plants running for a few years longer, while the rider attached to ratepayers’ bills will cost them up to $4 billion in additional electrici-
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ty costs. “Whatever happens, gas prices are going to stay low,” Schlissel contended. “The future of coal plants like Sammis is not optimistic; it’s pretty bleak. That’s why we don’t think ratepayers should foot the bill to keep uneconomic plants operating.”
Only time will tell It will almost certainly take years to determine who is really correct — no one knows, after all, exactly what will happen to the prices of natural gas or renewable energies in the future, or even how future regulations might affect the continued use of coal to generate electricity. Akron, as the home of FirstEnergy, has a bigger stake in the fight than most other cities. Not only will Akronites pay whatever future electricity rates come out of the PUCO case, but FirstEnergy is a major employer in the city, and many local institutions and individuals are among its shareholders. If the company loses the case, it’s an existential threat to the power plants in question, and no picnic for the company generally. “I wouldn’t say it’s a death sentence for them — but it’s a sentence. They’d be serving some time,” says Matt Brakey, president of the Shaker Heights-based energy consulting firm Brakey Energy and the secretary and past chairman of the Industrial Energy Users of Ohio (IEUO) trade group. And for Stratton and Toledo the stakes are also high — FirstEnergy supports about 3,000 jobs in those communities with the two plants affected by the PUCO case, Ridmann said.
Prediction A It’s a high-stakes case, for sure — and a fascinating one for most observers. It’s different, they say, because of the strange bedfellows lined up on each side and the fact that both sides seem confident that the PUCO will rule in its favor. “I think it’s highly probable that (FirstEnergy’s proposal) is going to pass,” said Brakey, who, along with the IEUO, has not come out in favor or against FirstEnergy’s proposal but does want the lowest rates possible for his clients. Brakey said the fact that the PUCO’s staff late last year reached an agreement with FirstEnergy is a very good sign for the company — since the staff is the commission’s chief research and advisory arm. Brakey also pointed out that FirstEnergy has included provisions that will make its proposal more palatable for a lot of ratepayers. Big energy users like foundries, which use a lot of power to melt metal, would be given relief for some of the spikes they cause in electric consumption, and many low-income ratepayers would get some assistance, Brakey says. And, in fact, some consumer groups and low-income advocates have come out in support of FirstEnergy’s plan. The Council for Economic Opportunities in Greater Cleveland and the Cleveland Housing Network, for example, both support FirstEnergy’s proposal. That’s, in part, because as part of FirstEnergy’s plan, they would continue to have access to assistance for low-income ratepayers that they represent, the groups said. “Each group is looking after its own interest. It’s not just my clients;
it’s the industrial clients, too,” said Joe Meissner, an attorney representing the two Cleveland nonprofits.
Prediction B Schlissel, on the other hand, predicts the PUCO will rule against FirstEnergy. He contends that recent energy price trends prove that FirstEnergy’s argument about future price spikes is wrong — but, more importantly, he points to the large number of entities that have come out to oppose to the company’s proposal. Not only do some environmental and consumer protection groups like Schlissel’s, along with big generators and the grid operator, oppose FirstEnergy’s plan, a slew of other parties has also spoken out against it. They include organizations as diverse as Walmart and the AARP, along with the Ohio Manufacturers’ Association. “There’s a whole constellation of forces involved now,” Schlissel said, from free marketers to environmentalist. Even Schlissel, who years ago was opposed to the deregulation of U.S. electricity markets, says he’s changed his tune in recent years. “My philosophy is capitalism and survival of the fittest,” Schlissel said. In any event, ratepayers likely will know the answer soon, as least as far as it pertains to the PUCO, which has been holding its final hearings on the matter. After that, time will tell if the commission made the right decision for ratepayers or FirstEnergy. “Whether this proves to be beneficial to customers depends on whose predictions come true,” Brakey said.
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Opinion From the Editor
Tools change, but the scoops stay
Editorial
Grading Scott Scott Scarborough wasn’t brought in as the University of Akron’s 16th president to be a mere hood ornament. In a sense, the hiring of a seasoned financial mind was a mea culpa by the university’s trustees after years of signing off on over-the-top spending from the previous administration — the culmination of which was the $60 million, and still woefully underused, InfoCision Stadium. Scarborough tackled the financial issues facing the university swiftly. He orchestrated $40 million in unpopular cuts, which included axing more than 200 non-faculty positions and eliminating the university’s baseball team. At about the same time, he rebranded the institution as “Ohio’s Polytechnic University” and unveiled a handful of other programmatic changes. Yes, there have been stumbles, including the alienation of some vocal donors and a student fee increase that was ultimately rescinded following pressure from students and state lawmakers. He also earned a rebuke from other regional public university presidents for suggesting their institutions might be doomed for extinction if they don’t change their ways. Scarborough’s most recent set of goals signed off on by trustees call for the president to identify and propose “bold and strategic initiatives, which are designed to raise the University of Akron’s stature in Ohio and nationally.” Bold initiatives? Nobody would argue his moves aren’t bold. Just look at the reaction they’ve received. Have they raised the university’s stature? Not yet. “Yet” is the operative word. Recent calls for Scarborough’s resignation, or even firing, are premature. While we are not fully endorsing all of his moves — even we are skeptical whether the polytechnic positioning will pay
off — Scarborough deserves the opportunity to see his vision realized. The president has only been in the office for fewer than two years, and he and the trustees deserve at least another to see whether this direction yields results. Of course, if enrollment continues to sour and hurt the university’s finances further, the board should consider a change. Trustees are in the process of putting to paper Scarborough’s goals for the current fiscal year, and they should seriously consider a metrics-driven approach and communicate those expectations with the university community. Vaguely written expectations — something all too common in presidential evaluations — won’t cut it in this case. Actions demand results, and the expected results should be clearly communicated with the university’s stakeholders. The faculty senate’s recent no-confidence vote in Scarborough, while unsettling, should hardly be crippling. Cleveland State president Ronald Berkman appears to have weathered a 2013 vote of no confidence in his administration. Moreover, Jerry Sue Thornton received two very public noconfidence votes during her two-decade tenure as the head of Cuyahoga Community College. Today she has a building named after her. Traditionally, people aren’t receptive to change. That’s especially the case in higher education, where the pace of change can be seen by those on the outside as nauseatingly slow. We agree with many that Scarborough and his administration have made missteps. A little more finesse, for instance, would have gone a long way amid his many upheavals since his arrival in July 2014. However, in the long run, refusing to address the issues facing the university would have been even more damaging than some bad press.
ACTING PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)
CLEVELAND BUSINESS
MANAGING EDITOR: Scott Suttell (ssuttell@crain.com)
I knew Stan Bullard worked hard as a reporter at Crain’s Cleveland Business before I walked into the newsroom here. I’ve been a journalist in Cleveland for 25-plus years, and Stan’s scoops were ones The Plain Dealer frequently followed during my two decades there. But I don’t think I had an appreciation for how hard Stan works. He’s one of the first people in the office and often the last to leave. He works the phones like an old-school operator. But Stan knows times have changed since he started working for Crain’s in 1986. He has embraced new-school techniques: taking photographs for online galleries, shooting videos and tweeting updates. He still works the beat as he did three decades ago. The tools of the trade have changed — he’s no longer pounding out stories on an IBM Selectric typewriter — and so has he. Earlier this month, we celebrated Stan’s 30year tenure at Crain’s. It’s amazing to consider that Stan’s byline has appeared in this publication for 30 of its 36 years. His tales are legendary. The week of his anniversary, we gathered in our conference room to share lunch and to hear Stan’s stories about coverElizabeth ing real estate as well as government and busiMcIntyre ness stories in Northeast Ohio. “When I started, the understanding was that you had to have scoops to stay (working at the paper),” he said. So, Stan got scoops. Lots of them. The Progressive headquarters on the lakefront that never was; the failed domed stadium and the Gateway project that followed; East Fourth Street — a story Stan stumbled upon when he was walking downtown and saw a dumpster on East Fourth and Prospect and started asking questions; the Rock and Roll Hall of Fame and Museum moving from behind Tower City Center to North Coast Harbor; and the rebirth of the Flats. As he regaled us, I couldn’t help but watch Lydia Coutré, our newest Crain’s reporter. She took on coverage of health care and nonprofits this past November. Like Stan, Lydia is a graduate of Kent State University. Lydia is just two years out of college and she’s now getting a master class in business journalism. Like Stan, Lydia works hard to inform our readers every day. No doubt, she’ll one day have tales to tell to a new generation of journalists around a conference table far into the future. They’ll laugh about her iPhone the way we do about the old Selectric. Stan and Lydia sit next to each other at Crain’s, which results in a wonderful blend of generations. We’re a small group, only 17 of us in the newsroom, between reporters, editors and production folks. But the range of ages is our strength — from 20s to 60s. We are millennials, Gen X-ers and baby boomers. Some are renting their second or third apartments, others are chasing toddlers around their first home, some are sending kids to college, and a few have paid off their mortgages and are welcoming grandkids. There’s lots of talk about diversity these days in business, and for good reason. We are committed to diversity at Crain’s because we all gain from shared awareness and from a broad spectrum of perspectives. Diversity includes intergenerational diversity. By sharing workspace and a willingness to learn from those younger and older than us, we expand our worldview. We gain empathy and knowledge. We serve our customers better. Every business benefits from diversity. So take some time to talk and listen to colleagues younger and older. Benefit from their insights and experiences. And if you’re wondering what to get Stan for his 30th anniversary, that’s an easy one. He’d love another scoop.
WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.
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Web Talk Re: Online ordering at grocery stores Our company, PrestoFresh, has been at this for three years through our partnership with Zagara’s Marketplace in Cleveland Heights. We have learned some hard lessons along the way, but have been fortunate to have grown rapidly — we processed approximately 5,000 orders in Year 2 (two times the year prior) and expect to double again this year. The core of Crain’s Feb. 15 article — without specifically stating it — is that online grocery requires managing from a fundamentally different perspective. It involves adding activities (costs) that consumers normally do for themselves — picking/packing orders and delivering them — to already razor-thin margins. So a focus on operational efficiency is necessary if there is a hope of being profitable. This usually means significant operational planning and the use of technology (beyond a website) to assist with fulfillment. … Saying it’s a tough business/channel is an understatement. If I were a brick/mortar considering it, I would be sure I have someone ready to roll up their sleeves and focus on it. It’s not something to be done effectively “off the side of a desk.” — Steve deMoulpied of PrestoFresh We utilize this service with Harris Teeter down in the Carolinas. Small mistakes have happened, but they’ve never driven us away from online ordering. Why? Our retailer goes overboard to make it right, with tactics such as refunding the product and replacing it, or gift cards. Granted, this must really hurt their already-thin margins. It seems to really help when your order is filled by a shopper who personally knows your desires. — Brad Carey
Re: Law firm mergers Law firms are not the only professional service firms looking at M&A as a way to jump-start growth. I focus on M&A along with transition planning with architectural/engineering firms and have seen very strong increase in activity in this area for many of the same reasons mentioned in Jeremy Nobile’s Feb. 15 article. I also have seen very little interest in out-of-town firms wanting to come to Cleveland and a stronger interest in local firms looking to go outside the region. Regardless of who, what and how, it can be a very rocky road to growth. I urge everyone to make sure that it is being done for the “right reasons.” — Neil Dick
Re: Shakeup at COSE I joined COSE over 25 years ago for their health insurance as I was a “oneman” photography studio with no other affordable options. I also found great value in all the networking/educational programs COSE offered through the years — making many valuable business connections AND friendships. I salute so many of the caring COSE staff members who I had the privilege of meeting and who showed a genuine interest in the success of my business. My hope and prayer is that COSE finds the right mix of solutions for business owners and rebuilds its membership base to remain viable in the marketplace. — Mark Madere
Personal View
Big-picture thoughts on a healthier region BY DR. DAVID MARGOLIUS AND DR. HEIDI GULLETT Ronaldo Martínez is an unlikely public health hero. As the star of public service commercials widely aired in Boston and New York City, he was filmed at a baseball field, at a swimming pool and in his shower, the monotone of his mechanical voice box describing a life forever altered by throat cancer at 39. “I almost died,” he says in a voiceover, the camera focused on a bib around his neck to cover the hole in his throat as he showers, in one ad. “Nothing will ever be the same again.” The ads were part of a multimillion-dollar campaign of the New York City Public Health Department that was credited with smoking rates diving from 22% in 2002 to 14% in 2014. That represents nearly half a million fewer smokers. The fight against smoking was the opening salvo in a deliberate, 12-year movement under former New York Mayor Michael Bloomberg to change the health of New Yorkers by making it easier for people to make healthy choices. New York City leveraged the power of mass-media marketing and local government to target cigarettes, trans fats and rising obesity rates with calorie counts on fast-food menus and improved access to fresh produce. The efforts paid off in better health for 8 million New Yorkers. Between 2001 and 2010, residents’ life expectancy increased three years, to 80.9 years, compared to a 1.8-year life-expectancy gain to 78.7 years in the United States. This was not due to poorer people moving away. New York City’s poverty rate was stable during that time. In his recent talk at the Cleveland City Club, Dr. Tom Farley, a former health commissioner in the Bloomberg administration, said the city used a “wholesale” approach to improve the health of millions, rather than a “retail” model of one person at a time. Changing the physical and social environment is the best way to prevent behaviors that put people at high risk for avoidable, costly and debilitating chronic conditions like diabetes, heart disease and obesity — the leading 21st-century killers. Public health interventions that reach a large population save more money — and lives — than health care that typically focuses on individuals when they already are sick, Farley said. “We can have a pretty big impact on people by changing the world around them,” Farley said. In a private event just before his City Club talk, Farley spoke with more than 50 Northeast Ohio leaders from government, health care, academia and community organizations. What lessons can a passionate posse of public health leaders working for a billionaire former mayor offer to improve better health in Northeast Ohio? Think big, Farley said: “We need to think as big as the problems we are trying to solve.” In Northeast Ohio, we have big problems. Cuyahoga County ranks 65th of Ohio’s 88 counties in health outcomes; 78th in social and economic factors related to health and 68th in healthpromoting physical environment, according to County Health Rankings for 2015. In Cleveland, 19% of adults are smokers. Better Health Partnership, which partnered with the City Club to bring Farley to Cleveland and convened the local leaders, posed a question to the group: What is the single most important thing that can be done to improve the health of the population in Northeast Ohio? The two most prominent themes in the responses suggest a promising start in thinking big: 1) Health and equity are things we all have to think about in policies across sectors, and, 2) The importance of unified approach. Together, we are so much better when we’re less focused on competition and instead focused on population health. “You don’t need a billionaire mayor to improve population health,” Farley assured attendees. “It takes unity of purpose.” Could a group of cross-sector leaders come together to take bold action to prevent killer diseases that are taking their toll on Northeast Ohio? Perhaps some airings of Ronaldo Martínez’s public service announcements would be a good place to start. Drs. Margolius and Gullett are affiliated with Better Health Partnership, a nonprofit collaborative dedicated to transforming primary care for better care, better health and lower health care costs to help Northeast Ohio become a healthier place to live and a better place to do business.
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THE DISH
‘Fast-casual’ Indian food finds home in NEO In a storefront nestled between an Arby’s and a Wendy’s on state Route 82 in Strongsville, a young entrepreneurial couple have introduced hip, fast-casual Indian street food to Cleveland’s southwest suburbs.
Lee Chilcote Chilcote is a freelance writer and editor who has written for Vanity Fair, Next City, Belt and other publications. He is the founder of Lit Cleveland. On the surface, Chris and Yatra Moscarino are not the likeliest candidates to open an Indian restaurant. He’s Italian and was scared of Indian food until he tried it for the first time. She’s a busy medical sales professional who doesn’t have much time to cook. Yet they’re hoping Bhelwala Indian Street Food becomes the next successful fast-casual franchise, and believe their healthy, fresh recipes satisfy a craving among their customers. Chris Moscarino, whose first entrepreneurial experience was starting a successful landscaping company with his brother in his 20s, came up with the idea after he had dinner for the first time at his in-laws’ house. “He actually wanted me to stop at Wendy’s on the way to my parent’s house,” said Yatra Moscarino with a laugh. “He was worried he wouldn’t like it and would be hungry.” Instead, Chris quickly fell in love with the cuisine’s rich, spicy flavors and delicious naan. That experience
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started the wheels turning. “I thought, wouldn’t it be cool if we did a Chipotle-style place for Indian food?” he said. “I wanted people to have the same experience I had.” Of course, these days plenty of entrepreneurs are pitching concepts modeled after Chipotle. The fast-casual segment, also called quick service, is the fastest-growing segment in the restaurant industry. Yet Bhelwala has a unique, high-quality concept that doesn’t have many competitors in Northeast Ohio. Many people unfamiliar with Indian food are intimidated by the long menus at ethnic restaurants, Yatra said. Bhelwala aims to reach a wider audience by simplifying the choices and making Indian food more accessible. “People think Indian food is all spicy, all curry, and it’s not,” she said. “We wanted to curb misconceptions and for people to enjoy Indian food.”
Fast-casual concept at work Bhelwala is named after the term for an Indian street cart. At the counter, customers pick a base — a roti roll, rice bowl or salad — and then choose from one of six main dishes, as well as sauces and toppings. The venue also offers street snacks that are typically found in Mumbai, such as bhel puri, a kind of crunchy Indian salad. Although these items are ubiquitous in India, they’re not widely available at most sit-down Indian restaurants in Cleveland, Yatra said. During a recent visit, this Crain’s reporter tried a sampling of bhel puri as well as aloo tikka (potatoes),
spot, but the menu items here are still incredibly fresh and flavorful. The couple also pride themselves on customer service. During the lunch rush, Yatra jumped behind the counter and began serving customers. The line dwindled quickly under the care of the attentive staff.
Changing tastes
Chris and Yatra Moscarino are the owners of Bhelwala Indian Street Food in Strongsville. (Lee Chilcote) chicken tikka, paneer tikka (cheese cubes) and Chris’ original recipe of lamb meatballs. All of these items were fresh and tasty, and they disappeared quickly. The recipes are based on ones handed down to Yatra by her mother. “I grew up going to India every summer,” said the first-generation American. “We ate on the streets there.” The Moscarinos looked at locations in Ohio City, Detroit Shoreway and other areas, but they ultimately chose Strongsville. “It just felt like home to us,” said Chris, who grew up in the area. He and Yatra have two children and are expecting a third. Bhelwala has a hip contemporary feel that shows a little bit of urban chic coming to the suburbs. The in-
terior has wood and corrugated metal finishes, concrete floors and wood tables with traditional Indian colors. The venue has a wine license but will soon be able to sell beer, as well. Of course, there are many challenges in the fast-casual industry, perhaps the biggest being quality control. Chipotle closed dozens of restaurants last year after an E. coli outbreak was linked to six venues in Washington state and Oregon. The company says it has fixed the problems, but it is also facing a criminal probe in California following a norovirus outbreak. The Moscarinos say they’ve ensured quality control at Bhelwala by hiring well-trained people and using the freshest ingredients. Preparing food ahead of time is the key to making sure that it can be served on the
The couple argues that the market for Indian food is only getting broader these days, in part due to people’s expanding palettes and a younger generation that has embraced ethnic food. “It’s high school students to people in their 70s,” said Chris. “We get people coming up from Akron. We get young business professionals, millennials, young families. The kids love it.” A part of Bhelwala’s appeal is that its food is not all spicy, and patrons can adjust their level of spice from mild to hot. It also offers vegetarian options. The Moscarinos graduated last year from the Economic and Community Development Institute’s food incubator program at the Cleveland Culinary Launch and Kitchen. They also worked closely with the Hispanic Business Center, which helped them develop a business plan. Unable to obtain a business loan from a bank, the Moscarinos took out a loan on their house to start Bhelwala. “We’ve got everything we have into this place,” said Chris. So far, it seems to be paying off. “Business is good,” he said. “We want to expand to other locations.” To contact Chilcote, send an email to clbfreelancer@crain.com. You also can follow him on Twitter @leechilcote.
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Stow company is making its mark with bulletproof materials BY DAN SHINGLER dshingler@crain.com @DanShingler
If Stow is lucky, it has the next Stephanie Kwolek working as an entrepreneur and engineer in a small lab and offices just off Darrow Road. Kwolek, of course, is the inventor of Kevlar, which today is used in everything from tires (its intended purpose) to protective racing gear, armored panels and most of the armored vests and clothing on which military and police forces have come to rely. But Vall Iliev hopes to improve on Kwolek’s work and even surpass her technology altogether. Iliev is the founder and owner of Stow-based ShotStop Ballistics, and for years, he’s been working with bulletproof technologies. It’s a small operation — just 12 employees, mostly producing made-to-order items using existing materials for defense and police work. It’s primarily a ballistic engineering firm, explained operations manager Jason Henkel, who said that the company works with existing materials, and new laminate technologies developed by Iliev, to design and build ballistic solutions for all kinds of customers. “That part of our business will always be in existence — we are a ballistic-protection design firm,” Henkel said. “There are thousands of thousands of entities that want new ballistic-protection designs.” But a few tweaks and improvements are not going to make Iliev the next Stephanie Kwolek, not by a long shot. The woman has a National Medal of Technology and is in the Inventors Hall of Fame, and not for nothing.
Two technologies Iliev says he’s counting on two new technologies — including one that he successfully patented in November — to not only make a name for his company, but to revolutionize ballistic protection. One technology involves new ways of laminating materials that has resulted in bulletproof material that Iliev says is lighter and far cheaper to make than Kevlar or other existing technologies. He’s also working on a nextgeneration material based on carbon nanotubes that he said will be even lighter and stronger still. To some, this might mean soldiers and police can wear lighter vests, that they’ll have lighter more portable shields — or that the rest of us might get lighter bicycle helmets. And that might all be true, but it’s not the golden grail that ShotStop is targeting as its first big market. That would be armored cars and other vehicles. Armored vehicles could be a giant industry, in the hundreds of millions of dollars, Henkel said, because it not only entails the existing market for armored cars and vehicles — it expands the market to include many more vehicles that would be armored if the weight and cost of existing materials were not prohibitive. In fact, if Iliev’s nanotube technol-
ogy is perfected as he promises, that market will probably be too big for ShotStop to exploit, Henkel said. “We will either license the second (technology) or sell it outright — then continue to do design work,” Henkel said.
The investor side In the meantime, Iliev is scaling up his development efforts and for more design work. He expects to double the staff this year and is talking to investors and demonstrating his technology. It seems to work, too. At a recent demonstration at Select Fire Training Center, a shooting range in Berea, owner and former Marine sniper Mark DePhillips fired five rounds from a 9mm pistol into a small square of Iliev’s laminated material, which caught the bullets but allowed none to pass through. “I haven’t been able to get anything to penetrate it yet,” DePhillips said. At least some investors seem to like what they see. ShotStop recently became one of four finalists, out of about a hundred, wooing an Akron investor network. “From what we’ve seen, they have demonstrated product capacity,” Daniel Hampu said. Hampu is a project manager at the University of Akron’s Research Foundation who also orchestrates the Akron-based ARCHAngels, a network of local, high-net worth investors looking to put capital into local startups and other growth-oriented companies. ShotStop recently made it through three rounds of information and presentations to become a finalist in a round of presentations to the group’s investors, Hampu said. Hampu said he’s not endorsing the company or suggesting other investors should put their money in, but he said he’s been interested in what he’s seen so far. “They’re a tech that at least on the surface seems to be pretty disruptive,” Hampu said. And Iliev is not just a guy off the street with a neat idea — he holds master’s degrees in electrical and mechanical engineering from the University of Sofia in his home country of Bulgaria. He also has worked in material science in the United States since the 1980s and has 15 patents either awarded or pending. He comes to presentations able to answer a host of business and technical questions, and is backed by lawyers and financial professionals who can answer others. “They have a very credible and established team that has been through this process with other technologies before,” Hampu said. If Iliev continues to deliver on his new technologies, investors likely will cash in. But Stow and Cuyahoga Falls might benefit as well. Stow hosts ShotStop’s headquarters and engineering facilities, and the company does its manufacturing in the Falls. Iliev said all his new hires will work in the same area. “We plan to stay local with everything,” he said.
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Tax Liens
Workshop: 4:00 pm to 5:30 pm
HOW TO TWEET LIKE A PRO
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.
MALKIR INC. FINNS CAFE 4641 Broadway Ave., Cleveland Date filed: Dec. 11, 2015 Type: Employer’s withholding Amount: $5,033
unemployment Amount: $14,271 FARABAUGH ENTERPRISES INC. 9105 Brookpark Road, Suite 7, Parma Date filed: April 14, 2008 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $9,343
LINDSAY SOUL CUISINE INC. 16906 Harvard Ave., Cleveland Date filed: Dec. 11, 2015 Type: Corporate income, failure to file complete return Amount: $5,022
FIRST STEP CHILD ENRICHMENT CENTER INC. 5550 Northfield Road, Maple Heights Date filed: Aug. 10, 2012 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $44,840
by Julie D'Aloiso, President of SpiderCat Marketing • What to do with Twitter once you have an account • What not to do • Learn some advanced Twitter tips Attendees will learn the basics of Twitter, Twitter Myths, how to connect with influencers, what is content weaving, how Twitter fits into your marketing plan and Twitter stats.
Networking: 5:30 pm to 6:00 pm Dinner: 6:00 pm to 8:00 pm
BUILDING SOLID RELATIONSHIPS IN CHALLENGING TIMES by Dan Colantone, President of The Greater Akron Chamber Now more than ever with The Internet, Multiple Regional Competitors, Global Competition, Fierce Price Wars, Shrinking Margins, etc. how does a business of any size survive, maintain their market and grow steadily? If you want to survive what do you have to embrace that is new, what business aspects are still effective and what about the creative aspects of business in today's market? Dan Colantone has been at the helm leading the charge and at times it was not easy...who said it would be easy? Come find out several "lessons learned" and leave this event with some new tools for your company's success, growth and survival in 2016 and beyond!
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LIENS FILED
LIENS RELEASED
MAIN STREET PRODUCTIONS CO. P.O. Box 16335, Cleveland Date filed: Dec. 11, 2015 Type: Employer’s withholding Amount: $6,228
BOFFICE LTD. 1100 W. Royalton Road, Broadview Heights Date filed: July 11, 2015 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $12,116
MAIN STREET PRODUCTIONS CO. P.O. Box 16335, Cleveland Date filed: Dec. 11, 2015 Type: Employer’s withholding Amount: $5,810 ENCOMPASS GROUP LLC 3615 Superior Ave., Suite 4403B, Cleveland Date filed: Dec. 11, 2015 Type: Employer’s withholding Amount: $5,388
FLANNERYS PUB OF CLEVELAND LTD. 323 Prospect Ave., Cleveland Date filed: Feb. 2, 2012 Date released: Dec. 11, 2015 Type: Employer’s withholding, failure to file complete return, partnership income Amount: $91,407
CLEVELAND DEMOLITION 21675 Foster Road, Wellington Date filed: Oct. 1, 2013 Date released: Dec. 11, 2015 Type: Employer’s withholding, unemployment Amount: $17,223
GREAT LAKES BILLING ASSOCIATES INC. 850 Brainard Road, Suite 1, Cleveland Date filed: Aug. 21, 2009 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $113,222
SECURITY MANAGEMENT GROUP INC. 6433 Gale Drive, Seven Hills Date filed: Dec. 11, 2015 Type: Employer’s withholding Amount: $5,371
COLLABORATION STATION AKA TECHNOLOGY PARADIGMS 5005 Rockside Road, Suite 600, Cleveland Date filed: Sept. 8, 2010 Date released: Dec. 11, 2015 Type: Employer’s withholding, failure to file complete return Amount: $17,931
METHOD CONSTRUCTION LLC 3977 N. 157 St., Cleveland Date filed: Dec. 11, 2105 Type: Employer’s withholding Amount: $5,356
DERREK DRYWALL & TAPING INC. 3101 Eastwick Drive, Cleveland Date filed: Feb. 15, 2006 Date released: Dec. 11, 2015 Type: Employer’s withholding,
HELPING HANDS DAYCARE AND PRESCHOOL 798 E. 185 St., Cleveland Date filed: March 9, 2006 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $16,465 HITCHCOCK CENTER FOR WOMEN INC. 1227 Ansel Road, Cleveland Date filed: Sept. 3, 2015 Date released: Dec. 11, 2015 Type: Employer’s withholding Amount: $35,509
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GOJO taking steps to reduce chemical footprint BY DAN SHINGLER dshingler@crain.com @DanShingler
Seventy years after it was founded, Akron-based GOJO Industries is right back where it started — trying to reduce the number of chemicals that people expose themselves to, especially when they’re trying to get their hands clean. It has, after all, proved good for business in the past. At the end of 2015, GOJO vowed to cut its chemical footprint in half by 2020 — which will mean replacing chemicals that are now derived from industrial processes with more natural alternatives and reformulating some products into new natural iterations. GOJO also will cut its use of packaging materials, increase its recycling efforts and achieve more third-party certifications for the sustainability and chemical content of its products. “They’re the first to come out and publicly say they would do it,” said Mark Rossi, executive director of Massachusetts-based Clean Production Action, a nonprofit focused on convincing companies to disclose more of their chemical usage and reduce it when they can eliminate toxic or environmentally hazardous materials. Rossi, who holds a doctorate in environmental policy, said he’s talking to businesses all over the country and about 25 have responded and are being scored for their responsible chemical policies and practices. But only GOJO has taken the major step of publicly announcing it would make large and specific reductions in its “chemical footprint,” as measured by a group of
business and environmental organizations in a coalition called BizNGo, which Rossi also founded. It will require real effort on GOJO’s part to meet its goal, Rossi said. “I’ve lauded them because they’re the first company that came out and said they would reduce their chemical footprint … it’s a significant amount of work,” he said. “We’re asking them to understand what’s in all their products, evaluate them and then produce a program where you commit to reducing it.” Rossi’s not just a guy with a winning smile and good intentions, either. Clean Production Action is a coalition of more than 50 signatories — investment firms, big health care firms such as Kaiser Permanente, and even big retailers, such as Staples — who themselves manage or influence more than $2 trillion in invested assets. They’re asking the companies in which they invest to provide more information about their chemical use and, if possible, to reduce their chemical footprints. If Rossi has his way, “chemical footprint” might become a common term, the way “carbon footprint” has entered the lexicon. His groups are working with Sweden’s ChemSec — a nongovernmental agency focused on chemical-harm reduction — to define the term and promote its use. “It’s a new term, and we’re at the forefront of defining what a chemical footprint is,” said Rossi. In a nutshell, it means scoring chemicals based on how hazardous they are to people or the environment. The higher the score, the worse, generally, the chemical is — so a company with a lower score is using less of and fewer dangerous chemicals than a company with a
WHAT’S IN A NAME? Originally, the company was going to be called “GoJer” after brothers Goldie and Jerry Lippman, who founded it. But after finding out the name was taken — and that buying it would cost $500 — Jerry Lippman reportedly decided that GOJO was, well, the way to go.
higher score. “Chemicals, per se, are not bad — everything around us is made of chemicals,” Rossi said. “We’re focusing for the chemical footprint on things like carcinogens and neurotoxins or lead.” For GOJO, the philosophy of reducing its chemical footprint might make sense on several levels. Not only is it good public relations and a win with investors like those working with Rossi, but it’s also a marketing opportunity. Consumers actually do want products with fewer harsh chemicals and artificial ingredients that might score higher than natural alternatives in terms of a chemical footprint analysis, said Nicole Koharik, GOJO’s global sustainability marketing director.
Already, she said, the company is unveiling “natural” product lines by doing things like using natural sources for the alcohol in its popular Purell hand sanitizers.
Company’s roots Which brings us back to GOJO’s beginnings, and the connection between the company’s founding 70 years ago and its current chemical footprint initiative. “Our founders, Goldie and Jerry Lippman, really built this company with some similar principles of sustainability … In fact, the company was founded on a safer way to clean hands,” Koharik said. Back in the 1940s, the brothers saw mechanics, machinists and a
host of other industrial workers using several caustic agents — such as kerosene and gasoline — to remove dirt, grease and sometimes other dangerous chemicals from their hands. Many workers, especially women, wanted a better solution that would at least be gentler to their skin — before most folks even knew that exposure to dangerous chemicals could cause cancer or other illnesses. When GOJO introduced its safebut-still-effective alternative hand cleaner, it was so successful that one of the company’s next products was a dispenser — because buyers complained that workers liked the cleaner so much, they not only used too much, they snuck some away to take home, said GOJO spokeswoman Kelly McGlumphy. And GOJO is not exactly new to the green-sustainability game. In recent years, the company has been focused on getting more products formulated so they can get thirdparty certifications and has found that doing so boosts sales, McGlumphy said. About a quarter of the company’s products now have some sort of “green” certification, Koharik said. And, along the way, GOJO is finding new ways to make products for people with skin conditions or sensitive skin — also selling points. “We want to leverage sustainability to drive innovation,” Koharik said. And GOJO likely is pleasing at least one customer with its newest chemical footprint initiative with Rossi’s groups. “We were asked in 2014 by a good customer, Staples, to participate in the chemical footprint pilot program,” Koharik said.
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Focus HIGHER EDUCATION
UA’S ENTREPRENEURS - P. 18
z
ADVISER - P. 21
z
Q&A- P. 23
A little help crossing the finish line Charles Lasher always felt a void from having never finished the degree he started in the mid-1990s. But thanks to a relatively new program at Kent State, his dreams of being a college grad were realized last spring.
BY RACHEL ABBEY MCCAFFERTY RMCCAFFERTY@CRAIN.COM @ramccafferty
Job offers. Family obligations. Lack of motivation. The reasons students fail to earn their degrees are varied, but some of Northeast Ohio’s colleges and universities are hopeful that with a little prodding — and plenty of support — some of these students will finish what they’ve started. As such, efforts to reengage students who failed to finish their degrees are underway at some of the region’s colleges, notably Kent State University. Kent State is targeting senior-level undergrads with at least a 2.0 GPA and 90 credits who stopped attending the university two or more years ago. The university launched the intensive outreach effort in the summer of 2014 to work toward the state of Ohio’s completion goals, said assistant director of university degree completion Deanna Donaugh. The state has recently begun to tie its funding for public institutions of higher learning to degree and course completion, instead of just enrollment. But the program isn’t just about getting students to come back; it’s about fully supporting them once they do. Donaugh said the goal was to create a “high-touch initiative.” Kent State now has one point of contact for those returning students to help them navigate everything from readmittance to registration to advising. Donaugh said the program has grown faster than anticipated. The expectation was that five people would graduate from the program in December 2014. Instead, one student graduated in the summer of 2014, and 15 ended up getting their degrees that December. The reasons students start back up are varied — from the person who just wants to finish what he or she started to the one who’s working toward a promotion. In Charles Lasher’s case, he said he felt a “void” and decided to explore how he could finish what he started. Lasher, a criminal and traffic division supervisor for the Clerk of Court’s office in Akron, said finishing his degree was always in the back of his mind. He attended Kent State in the mid-1990s and struggled at first, though he enjoyed his experience. He found his niche after discovering the English literature program, but ended up focusing on the workforce before he finished his degree. When he called up Kent State, the university pointed him to Donaugh.
SHANE WYNN
Lasher took a few online classes in order to complete a bachelor’s in integrated studies with a minor in English in May 2015. Since then, he’s taken the LSAT and applied to law school and to two MBA programs. He’s not sure the direction his life will take, but Lasher said the program made him want to see just how much potential he has. Returning students at Kent State can either opt to complete their original major or pursue one of three flexible liberal arts degrees, Donaugh said. Those degrees are bachelor of integrative studies, bachelor of technical and applied studies or bachelor of science in educational studies. Ebonie Bourgoin, a family advocate at the Trumbull Community Action Program in Warren, said she didn’t think she would have finished her degree without Kent State’s program. She originally pursued a degree in the criminal justice and psychology programs, but when Donaugh called her, she learned she was just a few classes away from an integrated studies degree. She completed a lab and an astronomy class online to earn the remaining credits she needed, earning her bachelor’s degree in December 2015. SEE DEGREE COMPLETION, PAGE 20
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HIGHER EDUCATION
UA offers fresh approach to hands-on learning BY BETH THOMAS HERTZ The University of Akron has created its new Experiential Learning Center for Entrepreneurship and Civic Engagement — or EXL Center for short — as part of president Scott Scarborough’s vision to modernize the school and boost enrollment, according to Ian Schwarber, resource director for the center. The EXL Center’s chief mission is to create opportunities for all students to get “real world” hands-on experience before they graduate, he said. Schwarber is working with EXL founding director and executive-inresidence Jeff Hoffman, a member of the founding team of Priceline.com. The center is designed to match students with the “massive inventory of experiential learning already going on in silos across the campus” as well as create new opportunities for them, Schwarber said. Those opportunities will include traditional internships and co-ops, but also will include options for students who may not be able to work in an unpaid job for an extended period. Examples could include partnering a student with a city official to help solve a specific problem, or mentoring at-risk youth in the Akron Public Schools. “We want to connect students with smart thinkers in our community and give everyone options to work and learn in the real world,” he said.
“It will help them stand out as they enter the job market, giving them a pivot point to discuss in an interview. It develops their character and their resume, and helps the community at the same time.” Scarborough said the university has committed at least $500,000 to get the center going. In addition, the center is receiving grants from the John S. and James L. Knight Foundation and the Burton D. Morgan Foundation. Scarborough said the university historically has linked internships with many of its strongest academic programs, such as engineering, and the EXL Center will build on that legacy. “It will leverage that existing strength and expand into arts and sciences,” he said. “We want rich, experiential opportunities in all majors. It’s where students learn the most.” According to the university, 78% of students who earned a bachelor’s degree in spring 2014 participated in at least one learning experience before graduating, and their starting salaries were 14% higher than students without such experience.
The team The EXL Center leadership is made of a people with a balance of skills, Scarborough said. Hoffman brings years of entrepreneurial expertise. Schwarber, who received a bachelor’s degree from UA in 2013 and served as president of the Grad-
uate Student Government from 2014-2015, brings a younger perspective. Carolyn Behrman, an associate professor in anthropology and classical studies who will serve in a twoyear rotating spot as faculty collaboration coordinator, brings her experience matching students with experiential learning. “Jeff is a perfect person to lead this,” Scarborough said. “He connects well with people and knows how to maneuver complex organizations. Partner him with Ian, who knows the University of Akron and is young and energetic, and they make a great team. But since we don’t want to step on toes where great programs already exist, Carolyn is a huge asset as well.” “This is the right team, and this is going to be big,” Scarborough added. For Hoffman, who has had success as an entrepreneur in many areas, being part of the EXL Center gives him the opportunity to share his passion for encouraging people to chart their own future. His message for students today: “Design a life that works for you.” As a child, he dreamed of traveling, but in his first job as an engineer, he found himself stuck in a cubicle. Becoming an entrepreneur was his ticket to greater self-determination. “I am not an entrepreneur for the money, but for the ability it gives me to set my own future,” he said. “I am blessed to be able to do what I want,
and mentoring helps me give back.” He believes the EXL Center is well-positioned to help today’s students forge their own paths as well. “Akron is a small enough city to get this done and large enough to have an impact,” said Hoffman, who also travels around the world with the U.S. State Department’s Global Entrepreneurship Program to mentor youth and women. Behrman also is excited about her role, which she describes as working within the university structure to create “a new sense of distinctiveness” that helps the university offer a stimulating education to all students. She said some of her work will involve inventorying existing experiential programs as well as helping bring new ones to fruition. She anticipates returning to her teaching role after her position with the EXL Center rotates to another faculty member.
Events Free monthly events focusing on entrepreneurship and innovation are going to be an important part of the EXL center’s mission. The first event, held Feb. 3, focused on “Embracing Risk and Ambiguity as Opportunity.” Hoffman, local businessman Tony Troppe and Dr. David Kay, founder of OrthoHelix Surgical Designs, an orthopedic device company that sold for $125 million a few years ago, encouraged the audience of students and community mem-
bers alike to not let fear of failure stop them from moving forward with their dreams. “We want to create the ‘Akron way’ as a model to get the entire community working together on goals,” Hoffman said at the Feb. 3 event. “Taking risks is an adventure but it beats staying in the center lane and coloring in the lines your entire life,” he added. The next event will be March 2, the official launch date of the EXL Center. Speakers will be GOJO CEO Joe Kanfer; John Zogby from Zogby Analytics and an author;” and Courtney Gras, a UA graduate who is co-founder and chief operating officer of Design Flux Technologies LLC. “These are a great opportunity to network or find a mentor, a cofounder, an investor or a friend,” Schwarber said. The events are held at the Blu Jazz+ club in downtown Akron, which is owned by Troppe. The Feb. 3 event was co-sponsored by the University of Akron Research Foundation and JumpStart Entrepreneurial Network. Tobin Buckner, Akron entrepreneurial community manager for JumpStart, said his organization sees Akron as the next center for entrepreneurship in both technology and nontechnology sectors. “People talk about scaling up. We think there is a lot of energy and activity toward the entrepreneurial culture here,” Buckner said.
a career catalyst
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The University of Akron’s newly formed Experiential Learning Center for Entrepreneurship and Civic Engagement, or EXL Center for short, is one of the major strategic efforts launched by university president Scott Scarborough (top right) since arrival in the summer of 2014. The idea is to create a clearinghouse of sorts for all of the university’s internship, co-op and other hands-on work experiences — and ultimately build upon all of those. The center will also host pitch competitions that will challenge students to present ideas that could be rewarded with cash prizes and gifts. The center’s monthly speaker series launched earlier this month at the Blu Jazz + club in downtown Akron. The free event on Feb. 3 focused on “Embracing Risk and Ambiguity as Opportunity.” Encouraging attendees not to let fear of failure stop them from trying new ventures were Blu Jazz+ owner and Akron developer Tony Troppe and EXL founding director and executive-in-residence Jeff Hoffman (top left). PHOTOS BY SHANE WYNN
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Bourgoin plans to return for a master’s degree in her original areas of interest. “I’m going for it,” she said. Scott Ulsenheimer, a sergeant with the Portage County Sheriff’s Department, was able to get his degree in fall 2014 without taking any additional courses. He had been working on and off toward a bachelor’s degree in criminal justice since the mid-1990s amid working and serving in the Coast Guard — at times, he was even teaching at Kent State’s police academy while chipping away at his degree. Through the degree completion program, he learned he already had the requirements for the bachelor’s in educational studies. He’s now working on his master’s in criminology. “It worked out really well,” Ulsenheimer said. Other schools have efforts to bring students back, too. The University of Akron said in an email that it regularly contacts students who have been gone for semesters or years, and that it has people on staff to support students when they transition back. Cleveland State University, meanwhile, has a mailing campaign for any former undergraduate or graduate student who has not been enrolled for a semester or longer. Janet Stimple, Cleveland State’s assistant vice president for enrollment service operations, said there are three postcards used to target different student populations. There’s one
THE
for students who have been gone for less than three semesters, one for those who have stopped out for more than three semesters and one for students who applied to graduate but never completed their degree. Cleveland State began its program in 2010 and started by targeting students who had attended at some point in the last five years, Stimple said. After students have been in the campaign for five semesters without response, they’re pulled off the list. Degree completion is important for any institution, said Cindy Mako Robinson, an advising and retention specialist for Lake Erie College, a small, private school in Painesville. It’s easier to retain students that have already been recruited, she said. Lake Erie College had been reaching out to students in the past, but Robinson’s arrival last fall signaled a deeper approach. So far, she’s focused on the most recent withdrawals, and her next targeted population for outreach will be students with specific numbers of credits who failed to graduate. So far at Kent State, 67 students have graduated because of the program, Donaugh said. Another 20 are set to graduate in May, and about 40 or 50 are otherwise enrolled in classes. Donaugh said the growth does present one challenge: keeping the program high-touch as it expands to help more students. “It’s a good problem to have,” Donaugh said.
FUTURE
SHOULD PREPARE FOR
YOU
WE WELCOME THE BOLD, the complex, the unique or reserved, the in and the out from all walks of life. Here, you’re accepted upon admittance, then emboldened to discover the leader you may become. At Kent State, boundaries don’t last long, and limits are mere suggestions. Our students fit in by standing out and break down barriers before they’re even built. It’s time to confront the world head on and dare to claim your future.
WWW.KENT.EDU
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Adviser: Lauren Onkey
Humanities still hold value in higher ed Americans have debated the value of studying the humanities for more than a century. We worry that grappling with the abstract ideas of philosophy or literature will obstruct students’ capacity for innovation, for speed, for profit — the things that drive the economy. Parents fear that if their children major in English or history they will not be prepared for well-paying, satisfying work. And yet students of all ages and backgrounds are drawn to courses in the humanities disciplines. Whether they are future engineers, nurses, contractors or masters of data analytics, students value and find inspiration in studying the humanities. This shouldn’t surprise us. The humanities, after all, reflect human ideas, values and memory. When we study the humanities, we learn about how people have understood themselves in relation to the larger world. They teach us what a democracy means, why it’s significant, and what people have done to defend and improve it. The humanities ask us to question, analyze, use evidence, persuade, and most of all to recognize value systems that inform all of our ideas. When faced with a new problem or opportunity — education reform, how we police our communities and understand justice, the resurgence of Cleveland’s downtown, the sustainability of our lakefront — we will be smarter and stronger if we take on the questions that the humanities press on us: How did we get here? What can we learn from the past? What are the values at stake in our decisions? Do we have the information we need to capitalize on this opportunity for the widest group of people in a democratic society? We fail our students if we see the liberal arts as an anathema to business and technology. In his final speech to Apple in March 2011, Steve Jobs said, “It’s in Apple’s DNA that technology is not enough. It’s technology married with liberal arts, married with humanities, that yields us the result that makes our heart sing.� In 1965, Congress created the National Endowment for the Arts and the National Endowment for the Humanities. The act that established them is a remarkably eloquent statement on the creative relationship between technology and the humanities: “An advanced civilization must not limit its efforts to science and technology alone, but must give full value and support to the other great branches of scholarly and cultural activity in order to achieve a better understanding of the past, a better analysis of the present, and a better view of the future. Democracy demands wisdom and vision in its citizens. It must therefore foster and support a form of education, and access to the arts and the humanities, designed to make people of all backgrounds and wherever located masters of their technology and not its unthinking
Lauren Onkey is the chair and dean of the Jack, Joseph and Morton Mandel Humanities Center at Cuyahoga Community College. servants.� Humanities education sustains itself through dynamic, innovative teaching that connects to our communities and makes full use of new technologies. Writing teachers help guide students to express themselves effectively across new communication platforms. Historians rewrite our understanding of the past through the unprecedented availability of historical resources and new data that technology provides. And philosophy teachers grapple with the ethics of our glut of information, which has changed our understanding of privacy and access. The ideas that we study in the humanities remain useful because they are the record of humans struggling with questions around values, power, identity, justice, history and expression. We don’t think about these things for sport. We wrestle with them so that we can make sound, innovative and ethical decisions in our work and in our communities. Training students to do so will give us the great leaders of our future. Great leaders — whether of a company, community organization, neighborhood or family — must think outside themselves to understand their role in larger structures and systems. Leaders challenge themselves to understand problems and opportunities and bring the best out of those around them. Colleges and universities all across Northeast Ohio are offering innovative and useful ways for students to study the humanities. At Cuyahoga Community College, the newly established Jack, Joseph and Morton Mandel Humanities Center teaches students to use the humanities to engage with their communities and develop their leadership skills. These opportunities apply the extraordinary history of human expression and ideas to the opportunities and challenges before us. The end result will produce leaders and solutions we can’t yet imagine.
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Baldwin Wallace tweaks its graduate offerings BY RACHEL ABBEY MCCAFFERTY RMCCAFFERTY@CRAIN.COM @ramccafferty
Students looking to earn their master’s degree at Baldwin Wallace University in Berea have more choices than ever, as the school has been redesigning many of its masters programs to better serve the modern student. For instance, Baldwin Wallace started offering its MBA programs at times more convenient for its students. That includes its Saturday MBA program for the management track, which began this past August. It’s proven popular, especially among younger students, said John Lanigan, dean of the university’s School of Business. Many of those students have young families or jobs that require them to travel. This program asks them to give up two Saturdays a month for two years. On the other end of that spectrum is the new, full-time MBA program Baldwin Wallace will launch in May. There is a group of students that want to earn their MBAs directly after completing their undergraduate degrees, Lanigan said. The one-year program will be internally marketed to recent university graduates for its first year. But other changes to the MBA program have been less about scheduling and more about structure. This past fall, Baldwin Wallace unveiled a restructured evening MBA program. The different program tracks — there are currently six in areas like management or business analytics — used to all have their own curriculums. When the university stepped back to take a look at the program, it real-
ized it had created a “monster,” Lanigan said. So, the leaders at Baldwin Wallace stripped down the evening MBA programs and created one core curriculum. The specializations are then relegated to three separate classes that students can take at the end of their program or scattered throughout. The result is that the program structure is simpler, but also richer. That’s because students are now in classes with people studying different disciplines, which allows them to learn what people in other disciplines face, Lanigan said. The change also gave Baldwin Wallace the chance to take those courses for the specializations and offer them as certificate programs. This building block approach is similar to what’s offered in Baldwin Wallace’s masters of education program. The school began breaking up its program about four years ago, letting students earn licenses where the coursework later can be built upon to earn a master’s, said School of Education dean Karen Kaye. The master’s program used to have a core set of classes students had to take, but the university realized that much of that was replicating what students had been learning as undergraduates. The school restructured the program to essentially create minors, allowing students specializing in one license to add three courses in another area of expertise, plus one in educational research, as they pursue their master’s. For example, a student who is getting a degree in technology may opt to add a second area of expertise in special education or literacy. “They’re really better prepared,” Kaye said.
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GBRE APARTMENT PROPERTIES
Q & A: Brian S. Stofiel Aeronautics major, Kent State University; Founder, Stofiel Aerospace Brian S. Stofiel is shooting for the stars. Literally. The 35-year-old military veteran and undergraduate aeronautics major at Kent State University partnered with a few others vets he met at the university to launch his company that specializes in a less expensive and quicker way to get small satellites into space. Stofiel Aerospace, of course, is still in its infancy. Stofiel estimates, for instance, that it’ll take upward of $15 million to get the technology to flight trials. Stofiel, who recently showcased his company at the Consumer Electronics Show in Las Vegas, is just one of the many entrepreneurial students on Northeast Ohio’s college campuses. He grew up flying Cessnas and loving aviation. Even as a young kid, he was designing things and working — from de-oxygenating water for an ultrasound company and teaching swim lessons to lifeguarding and working at Kinko’s before managing an interior design wholesaler. In the Air Force, he was an electronic warfare journeyman for the Combat Search and Rescue group out of Moody Air Force Base in Georgia. After the Air Force, he became a field service engineer for medical imaging equipment like MRI, CT, and X-ray — basically anything in the radiology department. Crain’s recently talked with Kent State’s rocket man to learn a little bit more about what it’s like to launch — pun intended — a business while still in college and why he thinks his company’s technology could bring the stars a little closer in reach. — Timothy Magaw
What inspired you to start a business while still in college?
What are these micro satellites you could launch used for?
I am not the normal student or even a normal veteran student, but at 35, I had decided to change industries and start designing for my own company. After the travel, constant on-call status and reaching the high-end of the salary range, I wanted to go into something I loved. Without the education I would not be able to accomplish what I wished to, and college also presents more opportunities for a startup. Plus, having so many disciplines in one place with hungry future employees can make recruiting so much easier. The decision to come back to school went hand in hand with starting a business. This orbital launch system is what I would like to use as my Ph.D. thesis, as I say ‘you can’t argue against something that flies,’ building capability as we go.
The first is imaging, which is the largest sector to date of all the CubeSats — miniature satellites — launched. They also have the greatest potential as early adopters of our system. The second largest market — engineering/science/testing — extends to great extent inside the aerospace industry. Testing engineering products in the space environment for future missions is predicted to be the largest of the markets with even Boeing and Lockheed using the system. After that will be the research market such as pharmaceutical, crystal growth and even biological experiments. There’s also an on-demand market, which will evolve because it changes the way we look at going to low earth orbit. Disasters (wild fires, earthquakes), astronomical events (asteroid flybys, telescopes), scientific needs, military and international events, to name a few.
What problem could your company ultimately solve? This system will change the way we look at space travel, and bring us a wide variety of applications currently stunted by a bottleneck of launch systems. Being able to fire a payload into low earth orbit on-demand is needed for a variety of reasons. Currently, our market is a secondary payload on the big rockets and wait time to orbit is four to seven years. Currently, there are over 200 awaiting a ride to orbit, and in the next three years, they are expecting over 2,000 in the 15kg and below weight range. To get to Mars or the moon, you will need a cheap, quick turnaround system to test the engineering that would go on such a mission. We can also put imaging satellites into correct orbits by moving the launch system to the site. Then, there are the humanitarian missions, such a disaster relief, where a prepositioned launch system could be in orbit in hours giving pictures every 80 minutes or so.
Where did you get the idea for your company? What was your inspiration? A couple years after my daughter was born, I got divorced and I decided it was time to stop handing out my designs to various companies and build something for myself. I designed a space propulsion system based on MRI principles but found that the cost in time and money to get it into orbit was going to be huge. As an aspiring engineer, I did what all good engineers do when confronted with a problem and designed a solution. I have a 10-year-old daughter who has been with me on this adventure even though she lives with her mom in South Carolina. I drive down almost every month for a weekend, and we go adventuring like gem mining in North Carolina, shark teeth hunting in Hilton Head, South Carolina, shooting, flying and riding bicycles through Savannah, Georgia. When she is with me during the
summer, Bella helps build rockets, goes on launches and even attends business meetings such as ICorps. We have even donated rocket and supplies to her class and offered to help with launches in the spring. This company isn’t just for my generation; it is for hers. Humanity needs to get off this planet, and Stofiel Aerospace places an emphasis on teaching also. What stage are you at now with the company? What could take it to the next level? We are in the funding stage after having completed some testing and prototype flights. Once again, we don’t figure in the regular model of a student business because we need about $15 million to get us to flight trials. Most of the money would be used to fly a lot of prototypes and carrier-paying payloads. Our customers are not risk averse and would take any flight to orbit considering the payloads cost between $10,000-$30,000, and they are expendable anyways. What skills did you learn in the military that translate to the business world? The military produces a very interesting change in a person, so when I went looking for people to help on this project, I went after veterans. Veterans don’t ask, ‘Is it possible?’ The attitude is, ‘How are we going to accomplish that?’ This is huge to an entrepreneur but even bigger to the inventors out there. The military prepared us to keep moving forward even when it looks overwhelming and the odds are bleak. How bold is it to try and break into the payload launch service business as college students? We all know the tech is possible. Now it’s time to just put it together and fly! The Air Force gave me the electronics experience that allowed me to have a good career, and that has led to me being able to design, hopefully fund, and build this orbital rocket system.
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Business of Life
Marcus Marinelli, center (above and below), opened Strong Style in Independence in 2005. Two of his star mixed martial arts pupils are Jessica “Evil” Eye and Stipe Miocic, below.
Versatility is MMA club’s strong suit BY KEVIN KLEPS Marcus Marinelli is a former power lifter who spent more than 20 years as a bar bouncer. He laughs when he says he’s “always enjoyed physical combat,” but he admits that now, at age 53 and with a 5-year-old son and four screws in a back that has required about 10 surgeries, he’s best served as a coach and business owner. Those roles require plenty of heavy lifting, too. Marinelli opened the Strong Style Mixed Martial Arts and Fitness Center in Independence in 2005. The 20,000-square-foot facility has close to 1,000 members — ranging from well-known UFC fighters Stipe Miocic and Jessica “Evil” Eye to those who come to Strong Style to take a conditioning class or just work out in its fitness center. The spacious layout includes a large room for classes, a 4,000square-foot mat area, two boxing rings, two MMA cages, a section with boxing bags hanging from the ceiling, a viewing area for parents of the youngsters who take part in classes, and men’s and women’s locker rooms. Marinelli said all of Strong Style’s
instructors (the facility’s online class schedule is jam-packed in the late afternoons and early evenings) are “homegrown,” and he has more than 20 employees in all. “We’re blessed with some very, very good instructors,” Marinelli said. “We have women, business people, athletes, everybody mixed together. We have a lot of people that are over 40 and 50 who are in unbelievable shape. My fighters are like, ‘Holy cow. I hope I’m in that shape when I’m older.’ ” Marinelli was inspired to open up what he said was the state’s first MMA-centric fitness facility after earning black belts in Chinese Kenpo and shoot fighting. At the time, the Ultimate Fighting Championship was just getting its start, and Marinelli said he got “hooked.” Miocic, an Eastlake North High School graduate who soon is expected to get a UFC title shot, is the headliner of Strong Style’s 20-plusmember MMA team. Marinelli serves as each fighter’s coach, and he still occasionally drills with his fighters, in addition to leading all of their pad work. But Strong Style goes well beyond MMA. Cleveland attorney Joe Delguyd, who runs the Old School Boxing Club, partnered with
Marinelli and leads Strong Style’s promising team of pro boxers. The club, which Marinelli believes will develop a couple of future world champs, fluctuates between five and 10 members. Over the years, as MMA became more popular, Marinelli noticed gyms “popping up” all over the state. A notable one — GriffonRawl MMA Academy in Mentor — has fighters who “cross-train” with StrongStyle’s MMA team, a practice
that gives both clubs a chance to improve and work out with different faces. Jason Dent, who won 22 of 35 bouts in an MMA career that ended in 2012, opened GriffonRawl’s 6,000-square-foot facility in 2003. In a display of the versatility for which many of these MMA clubs strive, GriffonRawl is in the process of changing its name to GriffonRawl Sports and Fitness. GriffonRawl has former MMA
pros, including George Comer, training its fight team of seven to 12 active amateurs. Dent, 35, said its boxing club has won about 85% of its amateur fights and has two current Cleveland-area Gold Glove champs in Ahmad Douglas and Logan Urban. “People come to us for our name and reputation,” Dent said. “We train everybody — not just the fighters. They want to know they’re getting quality instruction from quality, experienced people.” That’s a motto shared by Marinelli, whose son, Marco, started taking Strong Style classes at 2½ and whose wife, Gina, helps run the business’ Facebook page. (To this day, Strong Style hasn’t spent a dime on advertising.) “My kid doesn’t know anything else but this,” Marinelli said. “Whether he decides to fight or train or whatever, it’s going to be in his blood somehow or another, regardless of what he does in life. “I believe the martial arts and the mixed martial arts, it develops something in you that helps you go through tougher times. Life’s a lot harder as you get older, and the hurdles are a lot bigger. So that’s hopefully what we help prepare kids for.”
We don’t just see people for who they are; we see
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In the past nine months,
98% of kids participating in United Way-funded literacy programs are now reading at grade level. The Strong Style Mixed Martial Arts and Fitness Center in Independence has almost 1,000 members and features various classes for kids as young as 5. REBECCA R. MARKOVITZ PHOTOS
them for who they can become.
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BUSINESS OF LIFE
Source Lunch Bob Sopko’s job is to turn Case Western Reserve University into a training ground for entrepreneurs. He’s spent the past three years serving as director of Case’s NEOLaunchNET program, which helps students start their own companies. He says entrepreneurship is “becoming part of the DNA at Case.” He described how new products are constantly being created in the university’s labs, dorm rooms and in facilities like the think[box], which is a “maker space” loaded with equipment that can be used to turn ideas into products. Now it’s also home to a few startups. “I had three offices in think[box]. They were filled with students in three weeks,” he said. Sopko got into the startup world himself after CVS bought his former employer, Revco, in 1997. Though his dad just wanted him to “get a job,” he hunted for a way to get in on the dot-com boom.
Bob Sopko HIGHER EDUCATION
— Chuck Soder
So you started off your career working for Revco, first in a pharmacy, and then in the marketing department at the company’s Twinsburg headquarters. What made you want to get into the tech sector? While I was at Revco I worked very closely with the IT guys. … And I was on the (online) bulletin board that Case had — Free-Net it was called. … I had always been on the edge watching this stuff. Has the attitude toward entrepreneurship at Case changed since you started working there? Absolutely. There was a student, literally, he saw it happen in the four years he was here. He goes, “When I got here, I would talk about some business things. People looked at me like, ‘Yeah, whatever.’ ” … It’s becoming definitely more culturally accepted. And also encouraged and supported. It’s not just because of what we’re doing. It’s also the whole society and — I hate to say it — “Shark Tank” (laughs). Yeah, because then the parents are a little more accepting of it.
College students often don’t have much experience or market knowledge, and they can often make more money in the short term by going the corporate route. So might their parents have some legitimate concerns when their kids want to immediately become entrepreneurs? It’s not for everyone. I’ve said students are crazy enough to think it’s going to work. … No mortgage. They’re living in a dorm room. This is a time to experiment and do that. It may not be for you. Like Paul Buchheit, the guy (a Case graduate) who wrote Gmail. He wasn’t the founder of Google, he was an employee, but he did well. Now Google is a place — they get so many people applying there, a parent would say, “Oh yeah, you’re going to Google, that’s great.” For him to be an early employee, there was a bit of risk in that. There was a lot of risk in that. And you should be rewarded. And not everybody is cut out to be the CEO, and we emphasize that to students that we’re helping. You may want to just be technical. Without the technical part of it, you’ve got nothing. … I don’t care what you’re selling. If it doesn’t work, shut the doors, it’s over. … It’s an orchestra. If you just hear the trumpets, yeah, that’s fine. But you need the trumpets and the violin players and everything else.
People have told me that investors in the Midwest need to be less risk-averse and more willing to make big bets on startups. Should we be a little more like California in that sense or not? They’ve got enough capital raised that they can take risks. Another thing is, the multiples in California are just stupid. … It’s crazy. It’s crazy. It’s becoming very bubblish. So the bubble would be less likely to hit here? Correct. Any hobbies? We have never had cable TV or satellite TV — ever. Now we’ve discovered this thing called Netflix. My wife and I are addicted. … I follow the Cavs occasionally. It’s great LeBron’s back, but … if we ever win a championship here, the unemployment rate is not going to drop at all. … Nothing against LeBron, but we cannot put too much emphasis on the backs of our sports teams. But LeBron has done some good things for the community. He came back smarter than when he left. … What he’s doing in Akron is absolutely wonderful. He’s telling kids to stay in school, go to the University of Akron, we’re going to have a path for you.
FIVE THINGS: FAVORITE SHARK ON ‘SHARK TANK’ Mark Cuban
FAVORITE TV SHOW “Breaking Bad”
HOW I GOT MY FIRST REAL JOB Sopko worked in a Revco pharmacy in college and met a senior vice president by chance. He asked about an office job and got an interview. “The next thing you know I’m interviewing with the chairman’s son.”
WHY HE STILL OWNS CVS STOCK “Listen to Warren Buffet. Buy and hold.”
WHY YOU SHOULD HELP OUT A FELLOW CLEVELANDER “My analogy is, OK, we’re in a boat. The boat has a lot of holes in it. We’re bailing. If we don’t all bail, we’re all sunk.”
LUNCH SPOT LockKeepers 8001 Rockside Road Valley View www.lockkeepers.com 216-524-9404
The meal
Lunch special: Italian sausage risotto, mixed greens and minestrone (pictured); chicken scallopini; soft drinks
The vibe
Located between the historic Erie Canal and the Cuyahoga River, Lockkeepers has a classic feel — and you can see the river if you get a window seat. The menu is heavily influenced by the restaurant’s Italian founders, Malisse and Frank Sinito, and its Italian executive chef, Alberto Leandri.
The meal $37.26, before tip
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ADVERTISING
Crain’s People on the Move promotional feature showcases Notheast Ohio job changes, promotions and board appointments. Guaranteed placement in print, online and in a weekly e-newsletter can be purchased at www.crainscleveland.com/peopleonthemove. ACCOUNTING
LAW
LAW
LAW
Jeffrey D. Neuman
Carl J. Dyczek
David Mullen
JoAnna Gavigan
North America Board of Directors, CPA Associates International
Partner
Attorney
Associate Attorney
Buckingham, Doolittle & Burroughs, LLC
Weltman, Weinberg & Reis Co., LPA
Rosner, Ortman & Moss Partners, LLC
Barnes Wendling CPAs, Inc. Jeffrey Neuman, CPA, JD, President of Barnes Wendling CPAs, was elected to the North America Board of Directors of CPA Associates International, Inc. (CPAAI). He looks forward to helping guide the mission of this prestigious association, which has played such an integral role in the firm’s growth since 1976. CPAAI is an association of CPA firms comprising 142 market exclusive member firms and over 293 offices worldwide with 41 members in North America and 101 members in 57 other countries.
LAW
Buckingham, Doolittle & Burroughs welcomes Carl J. Dyczek as a Partner in the firm's Cleveland office and a member of both the Real Estate Practice Group and the Business Practice Group. With more than 35 years of experience, he focuses his practice on finance and lending transactions, and commercial real estate matters . For more information, visit www.bdblaw.com/ attorneys/carl-j-dyczek/.
CONSTRUCTION James J. Roddy Jr.
Chad D. Cooper
President
Attorney
Cleveland Plumbing Contractors' Association
Kaufman & Company National trial and litigation law firm Kaufman & Company, LLC, welcomes Chad Cooper to the Cleveland office as a new Member. With nearly 20 years' experience in litigation, appeals and alternative dispute resolution, Mr. Cooper has significant first-chair jury and bench trial experience in business tort, commercial litigation, financial services litigation and class action litigation. Kaufman & Company also has an office in New York, and is continuing to recruit.
ARCHITECTURE Erin Vollmer Interior Designer Hasenstab Architects, Inc.
The Cleveland Plumbing Contractors' Association is pleased to announce James J. Roddy Jr. was elected as the organization's President. Roddy, a graduate of St. Joseph High School, is also the President of Northern Ohio Plumbing. He is a journeyman plumber from Plumbers Local 55 in Cleveland with more than 32 years of plumbing industry experience. Roddy worked as a Plumber, Foreman and Project Manager before becoming the company Vice President in 2001.
FINANCIAL SERVICES Carlos R. Ledet Wealth Management Advisor Fifth Third Private Bank
Erin Vollmer, NCIDQ, joins Hasenstab Architects as an Interior Designer. Vollmer is a graduate of Kent State University and brings more than 16 years of design and project management experience. She has worked on many projects for healthcare, education and government clients throughout Northeast Ohio. Vollmer's varied experience and design skills are a welcome addition to the Hasenstab team.
Carlos Ledet is responsible for coordinating wealth advisory services including investment management, private banking, wealth planning, risk management, and trust and estate planning for Fifth Third Private Bank clients. Ledet brings more than 23 years of diverse financial services experience in wealth management, investment advisory services, and commercial banking. Most recently, he was a Wealth Strategist with Northern Trust Company. Ledet served in the US Marine Corps.
CONSTRUCTION
HEALTH CARE
Annie Sterle
Barbara Boyce
President
Senior Director, Gift Planning
Mechanical Contractors' Association of Cleveland
Summa Foundation
The Mechanical Contractors' Association of Cleveland is proud to announce Annie Sterle has succeeded Michael Brandt as the organization's President. Sterle becomes the first female President of the MCA of Cleveland. She has 27-years of experience in the Mechanical Construction Industry, specializing in on-site project management. She has worked for Relmec Mechanical LLC since 1988 and currently holds the title of Project Manager.
Summa Foundation welcomes Barbara Boyce as Senior Director, Gift Planning. As a development officer and gift planning professional, Barbara will work with Summa benefactors to help the health system advance its population health model of care through philanthropy. Ms. Boyce brings 17 years of development experience to Summa and will focus on gifts that leave a legacy while providing a lasting impact for patients and families of Akron. For more information, visit www.SummaHealth.org/Foundation.
Mr. Mullen will handle general consumer collection and legal matters. Prior to joining WWR, his experience included class action, mass tort and other civil matters. Licensed in Ohio and admitted to practice before the U.S. District Court (N. District of OH), he is a member of the Ohio State and Cleveland Metropolitan Bar Associations. He earned his J.D. from Cleveland-Marshall College of Law in 2012 and his B.A., summa cum laude from the University of Akron in 2009.
HOSPITALITY & TOURISM
JoAnna Gavigan has joined Rosner, Ortman & Moss Partners, LLC as an associate attorney. Gavigan earned her Juris Doctor cum laude from Case Western Reserve University School of Law, where she served as the Managing Editor of Health Matrix: The Journal of Law-Medicine. Ms. Gavigan is a member of the American Immigration Lawyers Association. She is admitted to the Maryland Bar.
PROFESSIONAL SERVICES Sharah G. Shoaff
Lisa Morris
Membership Development Director
Vice President of Agent Operations
EDGE
KHM Travel Group As KHM Travel Group's Vice President of Agent Operations, Lisa will utilize her talents of developing relationships, along with her 25+ years of experience in the travel industry, to serve as a leader and resource to the company's major departments including Agent Support, Training, and Marketing. She will also continue to work with supplier representatives to find creative and innovative ways to promote their travel products to both travel agents and consumers. www.khmtravel.com
LAW Edward H. Chyun Shareholder Littler Mendelson P.C. Littler is pleased to announce Edward Chyun's elevation to shareholder. Chyun's extensive legal experience spans across state and federal courts. Handling trials, appeals and arbitrations, he also advises clients on a broad range of issues, including wage and hour, discrimination and harassment, and unfair competition and trade secrets. As a litigator, Chyun regularly appears before the Equal Employment Opportunity Commission, the National Labor Relations Board and state equivalent agencies.
Edward H. Chyun Labor & Employment Committee Co-chair National Asian Pacific American Bar Association Edward Chyun, a shareholder in the Cleveland office of Littler, the world's largest labor and employment law firm representing management, was recently appointed co-chair of the National Asian Pacific American Bar Association (NAPABA)'s Labor & Employment Committee. Chyun has been involved in various bar associations throughout his 12 years of practicing law, currently serving as a founding member and treasurer for the Asian American Bar Association of Ohio.
EDGE, an economic development organization, provides leadership development and relationship-building for CEOs and their management teams. Sarah will be building membership and maintaining corporate partnerships with middle market companies. With more than a decade of experience working with business leaders, Shoaff understands that a strong leadership team improves company culture as well as the bottom line. She excelled previously in this role while with COSE and GCP. Learn more: edgef.org.
STAFFING & SERVICES Rachel Creasy Mack Manager of Talent Acquisition Strategy Staffing Solutions Enterprises Staffing Solutions Enterprises has promoted Rachel Mack to Manager of Talent Acquisition Strategy. Mack's role is unique in that it marks the creation of a new position at Staffing Solution Enterprises (SSE) to better service client needs for permanent talent acquisition. This role will focus on redefining traditional contingency search services, and fostering a partnership approach with clients resulting in improved interviewto-hire ratios, faster time to fill, and a streamlined experience.
For more information or questions regarding advertising in this section, please call Lynn Calcaterra at 313-446-6086 or email: lcalcaterra@crain.com
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z FEBRUARY 22 - 28, 2016 z CRAIN’S CLEVELAND BUSINESS
GCP
CONTINUED FROM PAGE 1
products and support services to members — particularly a oncehighly profitable health insurance operation — that COSE relied on. “We’re putting together the organization to move a different way than we had in the past,” Steve Millard, COSE’s president and CEO, said last week. In a joint interview last Wednesday, Feb. 17, Millard and GCP president Joe Roman explained the changes. “I think we have a chance to be the model in the country for representing” different kinds of businesses, said Roman, who currently serves as chairman of the Association of Chamber of Commerce Executives, an Alexandria, Va., trade association for 1,700 chambers of commerce. “So when GCP sets an agenda item, it comes from incredible input from small business leaders, middle market leaders and CEOs of Fortune 1000 companies,” Roman said. “Nobody else is really doing that.”
A COSE cash cow Not everyone who has watched COSE struggle over the last decade is confident the small business group’s top management, which has been in place for more than a decade, is up to the task. “I would like to see the organization start to grow again,” said Eric Tolbert, a financial adviser who served as COSE’s chairman from 2010 to 2012. “But any organization that does really well, or any organi-
zation that does really bad, at the end of the day it’s about the (performance) of top management. You can spin it however you want, but at the end of the day if (an organization) is successful or not that’s what the issue is, isn’t it?” Although GCP was the more widely known and influential brand of the partnership, former staffers described the 44-year-old small business group as “a cash cow” and “the tail that wagged the dog.” It was a cash cow because its health insurance program generated income that ended up on GCP’s income statement, and a dog-wagging tail because most of the 16,000plus members GCP could brag about — about 84% in 2005 — were COSE’s small businesses. Former staff members declined to speak on the record because of nondisclosure agreements. The tailspin began after Medical Mutual of Ohio, which was one of several insurers who supported COSE’s role as an intermediary selling health insurance products, in 2006 demanded an exclusive contract to provide health insurance to COSE members. It also took a large part of the administration of the plan in house. The loss of operating a low-cost, members-only health insurance plan triggered a loss of half of the organization’s membership. Millard said membership now stands at about 8,500. Income from that brokerage role and the dues of 16,000 COSE members were GCP’s main revenue streams in 2005.
GCP that year reported revenue of $13.3 million, with $9.1 million coming from memberships and much of the rest from COSE’s health insurance business. That year, according to an internal briefing memo obtained by Crain’s, GCP was earning $3.3 million in net income from the insurance program. That revenue would evaporate in 2013. In 2014, according to the latest tax filing available, the organization reported $9.6 million in revenue, with $6.7 million coming from memberships. Revenue from events and other programs and a $20 million parting contribution from Medical Mutual have cushioned — at least temporarily — the financial loss. Jared Chaney, Medical Mutual’s chief communications officer, said the $20 million was an unsolicited contribution to GCP that recognized the value of the 40-year relationship that had existed between the two organizations and was offered to help COSE reinvent itself and help GCP spur economic growth in Northeast Ohio. “We both succeeded over a long period of time, and it was our way of helping them get a new start,” Chaney said. That appears to be what GCP and COSE are doing. GCP has been a successful advocate for issues such as protecting the budget of the NASA Glenn Research Center during the Congressional budgeting process and advocating for the improvement of Cleveland’s schools. In the past, the two membership groups had different legislative and regulatory
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Roman now believes that the need for two agendas has declined, partly because the Affordable Care Act is taking business groups out of the health insurance business and because the organization has found an advocacy strategy that satisfies both factions. He said that as the two groups of members worked together over the last decade — GCP was created in 2004 — they have found that “99.9% of the time we’re either in the same place, or, let’s say we have a disagreement on a bill, we say, ‘Let’s s see if we can change the bill to be good for both of us.’ ” That happened last year, Roman said, when they lobbied jointly for changes in Ohio Gov. John Kasich’s budget proposal. Roman said the organization also will increase its focus on attracting new members from the middle market, which it is defining as companies with $50 million to $200 million in sales. Companies could belong to COSE if they had 150 or fewer employees, though Millard said 80% of COSE members had fewer than 20 employees. GCP members, called investor-members, were companies with sales in the high end of the middle market range and above, who joined the organization for its advocacy for issues like lower taxes
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and changes in regulatory agencies. But companies defined as middle market are growing rapidly and some in that category, based on the traditional definitions, were sought after by the membership sales teams of both GCP and COSE. So merging units like membership and marketing makes sense, Roman and Millard believe. All of this may feel like a demotion for COSE members. Under the new plan, the COSE board of directors will continue, but as an advisory body, said incoming COSE volunteer chairman Michael Stanek, CEO of Hunt Imaging. It no longer will have formal, fiduciary responsibilities for the operation of the organization. Fiduciary boards, like the GCP board, typically approve budgets and changes in policy and review executive compensation. COSE members, though, will have seats on the GCP board and on its important financial committee. “I think everything is heading in the right direction,” Stanek said. Others, former employees and board members, are not so sure. They especially blame Millard and, since the salaries of nonprofit executives are made public on tax filings, they wonder why his salary continues to rise as revenue declines and the jobs of their friends are eliminated. The GCP staff has declined in the past several years from over 100 to 80, according to a GCP calculation. Over the last decade, Millard’s salary climbed from $290,087 in 2004 to $366,676 in 2014, a 26.4% increase.
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goals — COSE would fight for health care reforms, while GCP’s lobbyists were more interested in shaping tax and regulatory policies.
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Crain’s Executive Recruiter Job Opening: AIA Cleveland Executive Director The Board of the Cleveland Chapter of the American Institute of Architects is seeking a qualified candidate to fill an immediate opening for Executive Director. Our ED is the media-relation face of the chapter locally and the day-to-day manager of active volunteers to ensure that AIA Cleveland professionally fulfills its mission. For more information, please visit our website: www.aiacleveland.com/ executivedirector. We invite strong candidates to apply by 5pm on Sunday, February 28, 2016 by sending their resume and references to EDSearch@aiacleveland.com. Please no phone calls. Questions to same email address.
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z FEBRUARY 22 - 28, 2016 z CRAIN’S CLEVELAND BUSINESS
The Week THE BIG STORY
Celebrating Over 25 Years of Excellence
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TAKING THE BUSINESS OUT OF BUSINESS BANKING
Akron is falling behind — but it’s not out of the race yet. The town that once showed the way for other industrial cities afflicted by the decline of their core industries is now falling behind its peers. It has the tools and ingredients it needs to catch up, but it will now have to work harder than ever to come from behind. Those are the simplified findings of a report released Feb. 17 by the Greater Ohio Policy Center with the support of Akron’s John S. and James L. Knight Foundation. The report, titled the “62.4 Report” in reference to Akron’s size in square miles, compares the city’s performance on indicators of urban health and competitiveness to five peer cities in the Midwest and Northeast: Erie, Pa.; Fort Wayne, Ind.; Hamilton, Ohio; Syracuse, N.Y.; and Worcester, Mass.
PAY UP The Cleveland Clinic agreed to pay $1.6 million to the U.S. Department of Justice following a nationwide investigation into the practices of hundreds of hospitals improperly billing Medicare for cardiac devices. The department on Feb. 17, announced settlements with 51 hospitals in 15 states for more than $23 million related to cardiac devices implanted in Medicare patients after surgery sooner than Medicare cover-
Elizabeth McIntyre Scott Suttell Tim Magaw Sue Walton Kevin Kleps Stan Bullard Real estate/construction Jay Miller, Government Chuck Soder Technology Dan Shingler Energy/steel/auto Rachel McCafferty Manufacturing/energy Jeremy Nobile, Finance
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Shareholders of Forest City Realty Trust stand to start seeing the benefit soon of the Cleveland-based developer’s long-planned transformation to a real estate investment trust from a real estate operating company. To be precise, they’ll see it as soon as March 18. The company announced that its board of directors declared a quarterly cash dividend of 6 cents a share of common stock for shareholders of record as of the close of business March 4. Also payable on March 18 will be a bonus dividend of 10 cents a share. The one-time distribution is a product of the company’s sales of property throughout the last year to streamline its portfolio and focus on top-tier cities as it converts to tax-favored status as a REIT under federal law.
NATURAL EVOLUTION Gas Natural Inc. of Cleveland is pursuing a new corporate structure and a $92 million debt refinancing. The company said it has filed with its regulators “a proposed new corporate organizational structure and corre-
RECIPE FOR SUCCESS Cleveland chef Zack Bruell is a semi-finalist for a 2016 James Beard Foundation Award — the highest honor in the restaurant industry. Bruell, whose Zack Bruell Restaurant Group operates 10 Northeast Ohio restaurants, is nominated in the “Best Chefs: Great Lakes” category, for Parallax, in Tremont. Among his other restaurants are Cowell & Hubbard, L’Albatros, Chinato and the new Alley Cat in the Flats. There are 20 nominees in the Great Lakes category. Bruell is the only one from Cleveland. Cleveland has a good history with this award. Last year, Jonathon Sawyer won in the Best Chef: Great Lakes category, while Michael Symon was the winner in that category in 2009.
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sponding financing arrangements” consistent with that structure. Gas Natural is a holding company that distributes and sells natural gas to about 67,000 residential, commercial and industrial customers through regulated utilities operating in Ohio, Maine, Montana and North Carolina. To streamline its structure “to facilitate greater focus on the four regulatory jurisdictions in which it operates,” as well as to simplify its financing arrangements, Gas Natural said it wants to create a wholly owned subsidiary under which each of its nine regulated entities will be held.
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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 22 - 28, 2016 z PAGE 31
The List
CONTINUING CARE RETIREMENT COMMUNITIES
NAME THIS ADDRESS YEAR PHONE/WEBSITE
(1)
Ranked by Number of Residents NUMBER OF RESIDENTS
FULL-TIME STAFF
MONTHLY FEES # INDEPENDENT INDEPENDENT LIVING UNITS LIVING ($)
# OF ASSISTED # OF NURSING YEAR LIVING UNITS BEDS FOUNDED
OWNER
TOP EXECUTIVE TITLE
1
Breckenridge Village 36855 Ridge Road, Willoughby 44094 (440) 942-4342/www.oprs.org
725
400
539
1,950-5,195 some options have entry fees
42
108
1979
Ohio Presbyterian Retirement Services
David Schell, executive director
2
Judson Services (2) 2181 Ambleside Drive, Cleveland 44106 (216) 791-2004/www.judsonsmartliving.org
717
456
383
2,000-4,000
144
83
1906
Nonprofit
Cynthia H. Dunn, CEO
3
Copeland Oaks 800 S. 15th St., Sebring 44672 (330) 938-6126/www.copelandoaks.com
525
500
335
1,700-3,900
107
188
1964
Nonprofit
David Mannion, CEO
4
Laurel Lake Retirement Community 200 Laurel Lake Drive, Hudson 44236 (330) 650-0681/www.laurellake.org
486
224.5
293
1,560-4,466
59
75
1989
Independently owned and operated
David A. Oster, executive director
5
Wesleyan Senior Living 807 West Ave., Elyria 44035 (440) 284-9025/www.villageliving.com
374
409
199
2,050-3,100
139
157
1896
Nonprofit
Deb Cihla, CEO
6
Stow-Glen Retirement Village 4285 Kent Road, Stow 44224 (330) 686-7100/www.stowglen.com
330
200
144
1,900
100
100
1985
Employee owned
Tammy Denton, CEO
7
Brookdale Westlake Village Retirement Community 28550 Westlake Village Drive, Westlake 44145 (440) 892-4200/www.brookdale.com
325
300
205
2,400-4,200
54
60
1989
Brookdale Senior Living
Patrick Payne, executive director
8
Kendal at Oberlin 600 Kendal Drive, Oberlin 44074 (440) 775-0094/www.kao.kendal.org
323
165
223
2,700-5,000
37
42
1993
Kendal at Oberlin
Barbara W. Thomas, CEO
9
Eliza Jennings Retirement Campus at The Renaissance 26376 John Road, Olmsted Township 44138 (440) 235-7100/www.elizajennings.org
320
141
175
2,348-4,832
23
96
1989
Eliza Jennings
Sandy Skerda, executive director
10
St. Luke Lutheran Community 220 Applegrove St. NE, North Canton 44720 (330) 499-8341/www.stllc.org
270
330
68
1,800-3,200
33
202
1960
St. Luke Lutheran Home for the Aging
John L. Spieler, CEO
11
Canton Christian Home 2550 Cleveland Ave. NW, Canton 44709 (330) 456-0004/www.cantonchristianhome.org
240
190
85
NA
NA
75
NA
Nonprofit
NA
11
The Village of St. Edward 3131 Smith Road, Fairlawn 44333 (330) 666-1183/www.vased.org
240
190
77
2,100-2,800
73
81
1964
Nonprofit
John P. Stoner, president, CEO
13
Rockynol Retirement Community 1150 W. Market St., Akron 44313 (330) 867-2150/www.rockynol.oprs.org
225
165
78
2,650-4,340
98
81
1966
Ohio Presbyterian Retirement Services
Kara Hanzie, executive director
13
Towne Center Community Campus 500 Community Campus Drive, Avon Lake 44012 (440) 930-6600/www.sprengerhealthcare.com
225
200
80
1,304-1,664
42
120
NA
Sprenger Health Care Systems
Jason Coe, lead administrator
15
O'Neill Healthcare Lakewood 13900 Detroit Ave., Lakewood 44107 (216) 228-7650/www.oneillhc.com
198
155
60
575-865
54
142
2006
O'Neill Healthcare
Diane Graham , administrator
16
Smithville Western Commons 4110 E. Smithville-Western Road, Wooster 44691 (330) 345-9050/www.sprengerhealthcare.com
185
146
7
850
63
131
1975
Sprenger Health Care Systems
Tonya Santos, administrator
17
St. Mary of the Woods 35755 Detroit Road, Avon 44011 (440) 937-3111/www.stmaryofthewoods.com
183
NA
81
3,000-4,400
48
50
2005
Atrium Living Centers
Charles Rupert, administrator
18
Amherst Manor Retirement Community 175 N. Lake St., Amherst 44001 (440) 988-4415/www.sprengerhealthcare.com
179
134
68
550-1,375
18
100
1959
Sprenger Health Care Systems
Kristen Gollinger, administrator
19
Lutheran Home at Concord Reserve (3) 2116 Dover Center Road, Westlake 44145 (440) 871-0090/www.concordreserve.org
170
239
80
To be determined
43
154
1932
Lutheran Home
Charles H. Rinne, CEO
20
Lake Vista of Cortland 303 N. Mecca St. (Rt. 46), Cortland 44410 (330) 638-2420/www.lakevistaohio.org
159
110
83
1,300-3,500
10
57
NA
Ohio Presbyterian Retirement Services
Dean Michael Palombaro, executive director
21
Concordia at Sumner 970 Sumner Parkway, Copley 44321 (330) 664-1000/www.concordiaatsumner.org
150
100
100
1,300-4,280
40
48
2003
Concordia Lutheran Ministries
Charlene Kish, CEO
Shepherd of the Valley-Niles 1500 McKinley Ave., Niles 44446 (330) 544-0771/www.shepherdofthevalley.com
145
150
50
525-630
80
79
1972
Shepherd of the Valley Lutheran Retirement Services Inc.
Richard Limongi, CEO
22 23
Briar Hill Health Care Residence 15950 Pierce St., Middlefield Village 44062 (440) 632-5241/www.thehillshealthcare.com
135
NA
11
925-1,360
45
85
1965
Anderson C. Ohman
Anderson C. Ohman, administrator
24
Brethren Care Village 2140 Center St., Ashland 44805 (419) 289-1585/www.brethrencarevillage.org
130
200
12
2,235-2,535
108
99
1972
Nonprofit
Troy Snyder, CEO
24
New Dawn Retirement Community 865 E. Iron Ave., Dover 44622 (330) 343-5521/www.new-dawn.net
130
120
31
3,000
36
98
1976
Hershberger Family LLC
Dan E. Hershberger, president
26
Grande Village 2610 E. Aurora Road, Twinsburg 44087 (330) 963-3600/www.sprengerhealthcare.com
97
150
54
2,640-3,400
106
97
1959
Sprenger Health Care Systems
Monique Cech, administrator
RESEARCHED BY DEBORAH W. HILLYER Numbers as of Jan. 1, 2016. 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) A CCRC is defined as a senior-living community that offers a continuum of care that includes independent living, assisted living and skilled nursing care. (2) Numbers reflect total of Judson’s three retirement communities, Judson Park, Judson Manor and South Franklin Circle. (3) The independent living unit is scheduled to open in 2018.
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20160222-NEWS--13-RG1-CCI-CL_--
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VOL. 37, NO. 8
FEBRUARY 22 - 28, 2016
THE AKRON EDITION
TECHNOLOGY: New hub Squirrels have big plans in North Canton P. A1
Mixed martial arts Strong Style thrives by bulking up its offerings
LEGAL: More growth Roetzel & Andress bolsters Akron office
P. 24-25
P. A4
The List
INNOVATION: They’re bulletproof
CLEVELAND BUSINESS
ShotStop developing new materials P. 13
Welcome to the energy battle of Ohio
NEO’s largest retirement communities P. 31
Each side is sure the Public Utility Commission of Ohio will rule in its favor, but only one can win
BY DAN SHINGLER
H
Business of Life
ello, fight fans.
SCOTT POLLACK
And welcome to the heavyweight battle of the modern era at Ohio Energy Regulation Arena. The matchup is sure to be a bruiser, and both corners say they’re confident they can win the huge purse represented by Northeast Ohio’s future electric rates. There are hundreds of millions, if not billions, of dollars at stake, and one way or another, most area businesses and residents will be guarantors for the prize money. In the blue corner, weighing in with 2,000 good-paying Akron-area jobs, 6 million customers and $52 billion in company assets — from Akron, Ohio, the successor to Ohio Edison, Centerior Energy and Cleveland Electric Illuminating, and a powerhouse with 17,000 megawatts of generating capacity: FirstEnergy Corp. In the green corner, fighting for the health of the planet, the economy, Ohio ratepayers and the future of all mankind — backed by a body of out-ofstate generators, muscular transmission arms, free marketers and environmentalists: The Opposition. Yes, this is about as exciting as Public Utility Commission of Ohio cases get — and if you’re not buying a ticket to see whether FirstEnergy gets its requested rate guarantee from the PUCO, then you’re missing out on some action that’s bound to affect you later. SEE ENERGY RATES, PAGE 9
GCP and COSE settling in BY JAY MILLER Entire contents © 2016 by Crain Communications Inc. jmiller@crain.com @millerjh
Boxes littered the offices and cubicles of the third floor of the Playhouse Square headquarters of the Greater Cleveland Partnership and the Council of Smaller Enterprises last week as staff prepared for a new floor plan that will bring together COSE and GCP units that have oper-
ated separately for several decades. The first wave of moves was scheduled to begin Friday, Feb. 19. Over the next several weeks, nearly everyone’s office location will change as the two joined-at-the-hip business advocacy and business service groups continue to search for a winning strategy in the face of a steep, decade-long membership and revenue decline at COSE. The organization’s leadership will discuss the changes, which have
been underway for several months, at the COSE annual meeting Feb. 24 at the Near West Theatre in the Gordon Square arts district. Members will hear how COSE is being folded more closely into GCP. They will hear about a strategy that envisions the consolidated organization focusing more on advocating public policy positions at the local, state and federal levels — a GCP strong suit — than on selling the SEE GCP, PAGE 28
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ENTREPRENEURSHIP: Tobin Buckner
Q&A: Ian Schwarber Resource Director, University of Akron’s EXL Center Ian Schwarber is an Akron native. He is also a literal rock star who spent a decade touring with his band, Blue Flashing Light, before returning to his hometown to finish his degree. I chatted with Schwarber about his newest adventure as the resource director for the University of Akron’s Experiential Learning (EXL) Center for Entrepreneurship and Civic Engagement and the effect he hopes it will have in helping to create a more vibrant entrepreneurial Akron. Tobin Buckner is JumpStart’s Akron entrepreneurial community manager and contributes a monthly blog about entrepreneurship in the region.
See more: For more on the University of Akron’s EXL center, see page 18
What is the EXL Center all about, in a nutshell? The EXL Center is about engaging with the surrounding business community from a renewed perspective of partnership and collaboration, and vice versa. Our community is as unique and resilient as any place in the country. If we can enlist the help of the business community to play a more creative role in how we structure experiential learning outlets for our students, we can offer something at UA that can be found nowhere else. What kind of advantages will the EXL Center offer to students and local businesses? We are building on an already extraordinary campus culture to produce interns who can work with businesses to get realworld experience and work on projects that have a real impact on people’s lives. Students get valuable experience, while businesses get to tap in to the power of academia to invigorate their work. Ultimately, we think the center will lead to a more technologically infused, forward-leaning business culture, with more direct access to the finest talent in the region. It will also lead to a more accomplished graduating class every year. What is your greatest hope for the center? Long term, we hope to see a community focused on building bridges with the university in the same way we are focused on building bridges with the community. We want people to come to us and ask, “How can you help us solve our problems?” That gives our students the opportunity to change the face of the region where they live and learn by engaging in meaningful community-building efforts. My hope is that the center will become a part of every student’s academic experience during their career as a Zip. Our goal is to offer the students the kind of culture and opportunities that give them the chance to put what they are learning into practice in the community. To accomplish the goal, we also hope to collaborate with regional actors like Crafty Mart, the Akron-Summit County Public Library system, as well as the University of Akron Research Foundation and JumpStart, to deliver educational programs that teach the values and techniques of the entrepreneurial mindset. How can people connect with the EXL Center? They can start by visiting us during our launch week, which will run from 9 a.m. to 5 p.m. Wednesday, March 2, through Friday, March 4, at our location at UA’s Bierce Library. We also encourage the community to visit our events, “BLUprints to EXL,” taking place on the first Wednesday of each month at BLU Jazz+ in downtown Akron. These meetings bring together students with fellow innovators in the community, and serves as a “kinetic collision” point for people in the area to meet like-minded thinkers. Akron’s mayor, Daniel Horrigan, introduced the hashtag #heyAkron to gather suggestions, questions or concerns for Akron. What would the center’s #heyAkron tweet be? In 140 characters, it would be “What can @theEXLCenter at UA do for your company, community or interest? If u tell us in person, you will be looking at the team ready to get it done!”
Squrrels LLC partners, from left, Cory Shoaf, Sidney Keith, Dave Stanfill, Andew Gould and Matt Becker. Not pictured: John Cody Baker. (Shane Wynn)
Software developer Squirrels looks to start North Canton tech hub BY JENNIFER CONN Tucked away in an outdated North Canton office complex that houses physicians, title companies and accounting firms is a young, rapidly growing software development company that appears comfortably out of place. Over the course of 2015, Squirrels LLC purchased about 75% of the Germantown Station complex it occupies. That’s because it plans to woo likeminded technology companies to Northeast Ohio to create its own tech hub. Taking contemporary a step further, Squirrels just purchased solar panels so that this summer it can build a solar farm in a field behind the complex to offset power consumption and sweeten the pot for potential tech tenants. With 24 current software trademarks, Squirrels started out in 2008 as Napkin
Studio LLC in the Bolivar, Ohio, basement of one of its founders before hitting on software that would put the company on the map. At first, the coders developed apps for the newly released iPhone. Co-founders Andrew Gould and David Stanfill, who is also CEO, had early success with a mobile TV-guide app that was one of the first 250 apps in Apple’s app store. “It was an exciting time because there weren’t many apps,” said Sidney Keith, one of Squirrels’ six partners, who also include Gould, Stanfill, Cory Shoaf, Matthew Becker and John Cody Baker. “Now there‘s an app for everything.” The following year, Napkin Studio moved out of the basement and into a Germantown Station office. It hired a few more people and began building apps for partners on both coasts, primarily for the entertainment and health SEE SQUIRRELS, PAGE A2
Thinking big Among other employee perks at Squirrels — such as flexible workweeks and annual retreats to places like Lake Tahoe — the company offers a unique approach to professional development. Every employee can use 10% of his or her workweek to focus on things like learning new software, program coding and other tech subjects. One small group of employees, along with CEO David Stanfill, joined a collaborative computing effort in search of the largest prime number ever discovered. The Squirrels staff verified the number, which consisted of more than 22 million digits, reached by the University of Central Missouri. For the task, the Squirrels group used the company’s “super computer,” which is so powerful that it’s enclosed in a temperature-controlled bay that’s liquid cooled and accented with jewel-tone lighting.
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Squirrels provides open spaces for collaboration, above, and a stocked kitchen, left, for its employees. (Shane Wynn photos)
SQUIRRELS CONTINUED FROM PAGE A1
care industries. The challenge at the time, however, was doing technical work in Ohio for partners thousands of miles away. “There was no way to show those partners work, other than holding a phone up to a screen,” said Tom Crilley, Squirrels’ director of communications. “They got the idea to put that screen on their computers.”
Finding their market Reflector, the software they developed to make their jobs easier, changed everything. The developers quickly realized Reflector would be useful in other applications, and in 2012, they offered it as a download under the company’s new name, Squirrels, and it quickly took off. Between 2014 and 2015, Squirrels’ revenues increased 57%. Today, Reflector receiver software is on teachers’ computers in 100,000 classrooms in more than 200 countries and territories. Downloaded onto a teacher’s computer, Reflector enables students on mobile devices to wirelessly reflect their screens onto the teacher’s computer. The teacher then can view students’ work in real time, record it for future use or connect to a projector to show the entire class what is happening on any device in the classroom. AirParrot, a second app, streams and mirrors content wirelessly from computer screens onto Apple TV, Chromecast and Reflector-enabled devices. The two are currently Squirrels’ signature software. “The most important part is it’s super cost effective,” Crilley said. “When you go to (education technology) conferences, you see really cool technology, but it costs thousands of dollars per year to use. Our software is only one license per classroom, and it’s a one-time cost of $14.99. And updates are free.” Education is the major market for Squirrels, and it plans to release new software in the next three months. Reflector also is gaining ground in the business world for real-time global presentations, as well as in
the gaming industry. Another rapidly growing segment for Reflector is third-party integration, in which technology hardware companies rebrand Reflector for sale with their products. And the company sees room to grow in these markets, according to Crilley.
Attracting tech talent Squirrels recently was recognized by Fortune magazine as one of America’s best small technology workplaces. The company motto “work hard, play hard” is reflected in the culture and office design. With open collaborative spaces, kitschy art, a stocked kitchen and comfy furniture, the company wants employees to enjoy their work and want to come in each day. Squirrels paid $118,500 cash for the 4,914-square-foot-space the company occupies. After renovations, it’s currently appraised at about $515,000, Crilley said. So why would Squirrels, now numbering 36 employees with a median age of 27, stay in North Canton instead of heading for Silicon Valley? “This is where we started,” Keith said. “When the original founders realized they could quit their day jobs, they moved here.” However, staying close to home brings challenges, such as finding local talent. To assist, the city is working on hosting a high tech job fair to draw talent to Squirrels and other local tech firms that are also struggling with difficult-to-fill positions, said North Canton Economic development director Eric Bowles. “You get higher tech companies like that, and they tend to attract other similar companies with similar employees,” Bowles said. “The spinoff is you may get individuals from those companies to spin off other companies in your area.” Squirrels also plans to offer amenities it hopes will attract tech firms. It owns 10 rentable spaces among five buildings. Remodeling has begun to reflect the look and feel of Squirrels’ offices,
including eco-friendly windows, LED lighting and open floor plans. Fiber optics are also being run to all buildings to boost Internet speed and performance, which is attractive to tech firms. Moreover, the company believes the solar farm will attract young companies. The farm will take up about 7,000 square feet and generate 63,000 kilowatthours of electricity annually. That’s enough to power the entire complex on solar power all year. “You’ll be using 100% clean energy here, and your electric bills will likely be offset,” Keith said. One challenge, however, is that zoning laws currently don’t allow for a solar farm at the site. “We’re working on reviewing the codes in North Canton and making it easier for people, under the right zoning districts, to consider putting in solar or other renewable energies,” Bowles said. “We’re hoping that we can come up with reasonable requirements that would allow them to do that.”
Creative sparks The company’s focus on sustainability started with Squirrels executives Gould and Stanfill, who own Teslas. And that push toward sustainability might lead the company into new creative territory. “As we start learning more about it (sustainability) maybe it’s something we can use for new products, or to completely diversify what we’re doing,” Crilley said. In front of the Squirrels office is a charging station for Teslas, which the company offers free use of to any Tesla owner. A station that will work with any electric vehicle is in the works, Crilley said. “We all understand that oil is going to go away some day, and if it doesn’t there are going to be environmental problems.” Keith said. At regular stations, it can take Teslas eight hours to fully charge. “We’ve got some crazy ideas to be productized, including something that would give the ability to charge Teslas fast and efficiently,” Keith said.
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Task force recommends saying farewell to Akron’s fairways BY JUDY STRINGER clbfreelancer@crain.com
New Mayor Dan Horrigan and his cabinet have plenty to mull over when it comes to Akron’s Blue Ribbon Task Force findings. The 58-page report, released in January, includes more than 75 suggestions for improving the city’s finances and operations. Among them is a recommendation to unload two money-losing golf courses, which the task force advised could be offered to Summit Metro Parks. Both the city of Akron and Summit Metro Parks declined to comment on the prospect of a deal. In an email, Summit Metro Park spokesman Nathan Eppink said the city has not made a proposal related to the 18hole J. Edward Good Park or the ninehole Mud Run, “nor have we had any formal discussions about (the city’s) two courses.� A county-owned golf course, however, is not without regional precedent. Cleveland Metroparks owns and operates eight courses. Summit Metro Parks is in negotiations to purchase the family-owned Valley View Golf Club on Cuyahoga Street in Akron, which would be the first course in its portfolio. Without a “final, signed� contract on that deal, Eppink also refused to discuss Valley View — specifically, if
the park district plans to operate a golf course there or if the land would be converted back to a more natural state and used as a passive recreation site. The latter is not unprecedented either. In late 2012, Cleveland Metroparks bought the former Acacia Country Club in Lyndhurst, according to Metroparks CEO Brian Zimmerman, and turned the golf course into the 155-acre Acacia Reservation. There are other examples in Geauga and Lorain counties. If Good Park and/or Mud Run will face the same fate — or if Akron will even consider selling one or both of the courses – is anyone’s guess. What’s certain is the courses are losing money and contributing, albeit subtly, to the city’s dwindling cash base. The Blue Ribbon Task Force found Good Park and Mud Run don’t “generate sufficient revenue to cover costs.� It also noted in the report that course “use is dependent on weather,� and it cited public complaints. While the city did not provide revenue and expense information related to the golf courses by press time, a review of Akron’s financial statements supports the task force’s claim. Between 2010 and 2014, the last year a Comprehensive Annual Financial Report is available online, Akron lost nearly $1.5 million on its golf course operations, averaging a $290,000 annual deficit over the five year period. Akron is not alone. Allen Freeman,
publisher of Northeast Ohio Golf, a tournament golf website for greater Cleveland and Akron, said many public courses — and private ones for that matter — have racked up huge losses in recent years. In general, he said, Northeast Ohio has more courses than market demand warrants. “We live in an area with one of the highest ‘holes per capita,’ yet we have a short season and an aging, dwindling population,� Freeman explained. With fewer younger people playing the game and putting more pressure on the already saturated market, he said, it may be easier for a county, presumably with deeper pockets than a municipality, to absorb ongoing deficits.
From par to park? Of course, one way to mitigate losses associated with operating a golf course is to use the site for something else. Golf courses quite naturally lend themselves to park lands, said Joe Leslie, director of acquisitions for the Western Reserve Land Conservancy. The nonprofit land trust, based in Moreland Hills, has helped two area park systems secure former golf course properties for preservation and “is working on more,� Leslie said. “If you think about it, most golf courses have water features running through them,� Leslie said, “and a lot
of them are in areas where people have easy access to them.� Golf cart paths, meanwhile, can be utilized as walking and jogging trails. In 2014, the conservancy group won a grant from tClean Ohio Conservation Fund to purchase the former Royal Oaks Golf Club in partnership with Lorain County Metro Parks. The property is now part of the Indian Hollow Reservation and preserves. Roughly seven years before that, the land conservancy partnered with the Geauga Park District to buy Orchard Hills Golf Course in Chester Township from the Patterson Fruit Farm family and restore it as Orchard Hills Park. The restorations, however, are not without their challenges. Golf operators use pesticides, which contribute to poor water quality and less biodiversity, Leslie said. In some cases, designers have erected dams or filled in streams. Getting golf courses back to a natural state takes funding, which can be hard to come by. “A lot of the public funding resources we have are intended to protect habitat species or water, and there is not an awful lot of habitat to protect after a property has been converted to a golf course,� he said. “So, it slims down our choices significantly.� Whether parks choose to keep courses or convert them to preservations, both cases are winners for park
districts, whose mission includes conservation, according to Zimmerman. More often, “when a golf site gets repurposed, it’s for residential or commercial development,� he said. David Comernisky, vice president with real estate advisory firm CBRE in Cleveland, said development — particularly commercial development — is not a likely outcome for Akron’s Good Park fairways because plenty of more easily developed parcels exist in the area. “Right down the street, right on White Pond Drive, there is a large piece [of land], which they are trying to develop for corporate headquarters or office space,� Comernisky said. “There is plenty of land on Ridgewood Road from [Interstate] 77 going west to Cleveland Massillon Road, probably 10 parcels there as well.� Mud Run, he added, has wetland issues and is too small of a property, given the water issues, to effectively develop. For his part, golf insider Freeman said he would be surprised if Akron gives up its legacy links at all, saying the courses are well-maintained and a point of pride for the city. “But, it may come very well down to money,� Freeman concluded. “Does it make sense for the city to continue losing money owning a golf course when there are so many of them in Northeast Ohio?�
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flow of attorneys. We were always committed to it.”
clbfreelancer@crain.com
Count Akron law firm Roetzel & Andress among the growing number of Rubber City backers throwing money — not just chatter — behind the AK. In recent months, Roetzel has added 11 new attorneys to its downtown digs in the refurbished former O’Neil’s department store. The new partners, “of counsel” attorneys and associates represent a significant addition to the existing staff, according to Bradley Wright, partner-in-charge of the Akron office, and reflect the firm’s confidence in Akron’s potential. The additions increased Roetzel’s law staff by 20%, according to a company spokeswoman. “Look, you got to bet on where you think activity will happen,” Wright said. “If you look at the Northeast Ohio region, you have seen Cleveland grow significantly with regards to real estate and construction and all these other things that are important for a legal firm. We believe Akron will see similar growth.” Much of that confidence comes from the top, Wright said, specifically new Mayor Dan Horrigan and his “pro-growth,” “pro-bringing-people-downtown” administration. “I think that ends up bringing businesses,” Wright said. Add to that an ambitious cadre of developers and financers who are intent to help the city reclaim empty or underutilized properties and turn them into multiuse, “live, work, play” developments. It all boils down to the prospect of an even stronger and more profitable hub for Roetzel, which was founded in Akron more than a century ago and has counted the city among its key markets for decades. “Sometimes the markets come and go,” Wright said, “but Akron, for a long time, we kind of kept a steady
Deep roots Roetzel & Andress is Akron’s oldest law firm, dating back to 1876. In the 1990s, the firm began to expand, first by opening an office in Cleveland and later adding an office in Naples, Fla. It then filled out Ohio and Florida with more locations and opened an office in Washington, D.C., before weathering the economic downturn and its first layoffs in 2009. “Over the past couple of years, we decided to reinvest in Akron and to seek to actively grow in the market,” Wright said. “We’ve added some associates along the way. … We are continuing to look to grow in this office, because it’s been an important market for us.” The large class of new recruits solidifies not only the firm’s faith in Akron but the local legal industry’s post-recession recovery, said Allen Nichols, executive director of the Akron Bar Association. “I think Roetzel taking the step they have is a sign that things are beginning to improve in the large firm market here,” he said. “And the idea that we are bringing more people into downtown to work and shop and everything else really helps the city as a whole.”
The upside of down Today, Roetzel’s Akron office is home to 51 of the firm’s 176 attorneys who span 13 offices in four states, including its newest location in Chicago. Five of the new Akronbased attorneys, including new partners David Wigham and Timothy Pettorini, focus on oil and gas matters. Even though the drilling boom is slowing as oil prices fall, oil and gas law is not. “Often in downtimes there is more litigation, and in good times
there is more corporate work,” Wright said, adding the current opportunity for Roetzel lies in “companies negotiating and renegotiating leases with land owners.” However, he expects the firm will play a significant role when prices stabilize and Ohio boosts its production from Utica shale. The recent recruits mirror other industries that the firm “would like to strengthen,” the Roetzel partner said, such as construction and real estate – both of which are direct responses to development going on in and around Akron – and environmental law. Attorney John Heer brings expertise relating to Clean Water Act issues, supplementing the Roetzel’s existing practice in air and other environmental matters. The Akron office also houses an active transportation law practice. “A lot of that practice, which I am involved in, is national in scope. Our client base is all over the country,” he said, “and almost all of the major work handled in the transportation is out of our Akron office.” For now, Wright said, there is no ceiling on how big Roetzel wants to grow its home base. Despite Akron’s ease of commuting and a growing base of dining, shopping and entertainment venues, the city is not an easy sell, particularly to legal professionals outside of Northeast Ohio. Future expansion, to a large extent, hinges on organic growth. Seven of the 11 new attorneys were brought in as associates and can move up the ranks with experience and by building their client base. Wright said the firm encourages associates to become involved with the community as well. If this class is anything like other recruits, after a while “they will really love the area,” he said. “Then we have a longtime lawyer, who is happy with the community, happy working in the firm.” And what, he asked, is better advertising than that?
CONTENT PRESENTED BY:
The Akron/Canton affiliate of National Sales & Marketing Executives presents . . .
TUESDAY, FEBRUARY 23, 2016
Accent on Excellence
ACCENT ON EXCELLENCE
T
he National Sales & Marketing Executives Akron/Canton provides high-caliber education and valuable networking opportunities for sales and marketing leaders in the greater Akron/Canton region. NSME Akron/Canton has more than 50 members who provide sales and marketing expertise for a wide range of businesses and nonprofit organizations. Members blend their broad experiences and skills to create a highenergy, thought leadership organization that provides cutting-edge information at monthly seminars and dinner programs.
A premier organization Executive director Sharon Reed says NSME Akron/Canton is the premier organization
for leading sales and marketing practitioners in the region, and it plays a significant role in strengthening communities. The group’s vision statement states that members are known for “identifying and mastering emerging trends, and exemplify thought leadership in their industries.” Reed says the group maintains close connections with similar leading edge organizations across the country in its mission to develop personal and professional excellence in sales and marketing. The organization has adopted core values to guide members to achieve the highest standards of sales and marketing professionalism. Those core values include: n Educate through top-caliber informative,
2016 BUSINESS EXECUTIVE OF THE YEAR DR. JAY A. GERSHEN President, NEOMED
A LEADER IN INNOVATION
D
r. Jay Alan Gershen, who became the sixth president of the Northeast Ohio Medical University in January 2010, says being recognized by the Akron/Canton NSME as Executive of the Year is humbling. “The fact that the award comes from a national sales and marketing association serves as validation to us, an organization, that our team’s forward thinking and use of such principles as diversity, equity and inclusion; public-private partnerships; entrepreneurship, incubation and commercialization; disruptive innovation; multiple, one-to-one collaborations; and creative workforce development all are
looked upon with the utmost appreciation by peer groups in and outside of our sector,” Gershen said. Gershen said NEOMED’s mission to advance science and find solutions using medical research to improve the quality of life and health of Ohioans means engaging with all aspects of the community — business, health and civic. “We serve at the crossroads of two dynamic sectors — higher education and health care,” he said. “Technological and generational changes notwithstanding, these sectors are in the process of huge organizational, cultural
inspirational programming for professional development. n Network to nurture valuable, life-long relationships, personally and professionally. n Mentor by encouraging and advising the next generation of sales and marketing professionals. n Live ethically through high standards of professional integrity. The organization offers dinner and luncheon programs throughout the year, as well as in-depth workshops on topics relevant to sales and marketing professionals. NSME Akron/Canton also works with leading area universities to provide mentoring and internship opportunities for students enrolled in sales and marketing programs.
and economic change. “As a result, we have to use 21st century business principles to keep medical education affordable for our students, to generate revenue streams and remain vibrant for our community’s health and economy, and to advance innovation and research at the epicenter of Northeast Ohio’s health care hub.” At NEOMED, Gershen initiated the Education for Service program, an innovative health workforce development program that reduces student debt, provides health care to underserved communities, diversifies the health care workforce and contributes to economic growth. He also expanded NEOMED’s regional mission to the Cleveland area, working with local hospitals, community health centers and other providers to create an urban primary care training program. Gershen also implemented a $166 million campus expansion plan that includes a research tower, a residential “village” and NEOMED’s Education and Wellness Center, which includes the Bio-Med Science Academy — the first STEM high school on a medical university campus in the nation.
The 44th annual Akron/Canton National Sales & Marketing Executives “Accent on Excellence” awards program, slated for Feb. 23, will recognize the highest levels of professionalism in the diverse sales and marketing field. The annual awards program will honor the Executive of the Year, the Outstanding Community Leader of the Year, the Jim Butler Collegiate Awards Recipient and multiple Achievements in Excellence awards. Reed says these honorees are selected by NSME leaders, based on nominations from local professionals, questionnaire responses provided by the nominees and publicly available information. Award criteria includes community and civic involvement, professional experience and demonstrated performance. NSME Akron/Canton has held an annual awards gala to honor the “best of the best” sales and marketing professionals since 1972.
A history of leadership Rich Lewis, vice president of external affairs and secretary of NEOMED’s board of directors, called Gershen a “visionary.” “That’s literally why we hired him — to come here and to help us create what is now Northeast Ohio Medical University,” said Lewis, adding that Gershen created the foundation for the university’s transformation by establishing three colleges — medicine, pharmacy and graduate studies — and assembling a good leadership team. “What intrigued me most about Jay is I’ve never seen anyone move into a community and establish himself so effectively and so widely in such a short period of time,” Lewis said. “He’s developed a level of respect and professional collegiality around the state that I’ve never seen anyone do in such a short period of time.” Prior to NEOMED, Gershen served as vice chancellor for external affairs, executive vice chancellor and interim vice president for academic affairs and research at the University of Colorado at Denver, where he played a central role in the consolidation of the university and its Health Science Center.
PLATINUM SPONSORS
CONTENT PRESENTED BY:
S2 February 22, 2016
OUTSTANDING COMMUNITY LEADER: HATTIE LARLHAM
Improving lives one at a time
H
attie Larlham, a nonprofit organization dedicated to creating opportunities for and improving the lives of children and adults with developmental disabilities, is the Akron/ Canton NSME Outstanding Community Leader recipient in the 44th annual Accent on Excellence Awards. Hattie Larlham was founded in 1961 when Hattie Gadd Larlham, a nurse, brought a vision of providing quality care for people with disabilities to life. Her legacy began with one child and a simple mission to provide comfort, joy and achievement. Larlham cared for infants with profound special needs in her Mantua farmhouse. Today, Hattie Larlham provides medical, residential, recreational and work-training services to nearly 3,000 children and adults with intellectual and developmental disabilities. In its 55-year history, Hattie Larlham has earned the reputation of being an entrepreneurial, forward-thinking and sustainable organization, and a catalyst and leader in providing innovative, integrated services and care. Along with the Outstanding Com-
munity Leader recognition, the Hattie Larlham Foundation’s Tonnie Alliance, corporate relations and major gifts officer, also is being recognized with an Achievements in Excellence Award. “It’s a real honor for us not only to be recognized as an organization, but to have our employees recognized as well,” said chief development officer Catherine Schwartz. “There are so many people who are supportive of NSME that I think would be really interested in the work that we do. While we are well known within the disabilities community, having that broader audience and recognition for the work we do is great.” Hattie Larlham is readying for the launch of its Food Hub program, an outgrowth of Hattie’s Gardens. Hattie’s Food Hub is located in the southwest quadrant of Akron, an area Schwartz said is known as a “food
desert” — a geographic area where affordable and nutritious food is difficult to obtain. The Food Hub will build on Hattie’s Gardens by washing, preparing, packaging and selling fresh vegetables from Hattie’s Gardens and local farmers. It also will have a community component with education space for demonstrations and classes in food preparation. “When we spoke with neighbors, we not only looked at what they were interested in buying, but we listened to their concerns about no community space in the neighborhood,” Schwartz said. Hattie Larlham’s efforts have been recognized by a variety of groups. Last year the organization earned its second consecutive PRSA Cleveland Rocks Award from the Cleveland chapter of the Public Relations Society of America; a NorthCoast 99 award from the Employers Resource Council for the sixth time; a SoMe award; an Ohio Public Images Award; and a Distinguished Sales and Marketing Award, honoring Lauri Molnar, business development and recruiter at Hattie Larlham.
Congratulations Jolene Colant
2016 NSME Achievements in Excellence Award Recipient Presented at the 44th Annual National Sales and Marketing Executives Accent on Excellence Event
THE JIM BUTLER COLLEGIATE AWARD RECIPIENT: HALI STRUB, The University of Akron
Making decisions for a better future
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ali Strub, a junior pursuing a degree in integrated marketing communications at the University of Akron, is the Jim Butler Collegiate Award recipient of the 44th annual Akron/Canton NSME Accent on Excellence event. Strub of Tallmadge said her interest in marketing stems from the motivated business professionals she has met. “I really like talking and interacting with people,” said Strub, adding that a summer marketing internship at Best Process Solutions Inc. in Brunswick cemented her interest in the field. There, she executed social media, advertisements and customer lists, discovering a passion for advertising. As the vice president of human resources for Pi Sigma Epsilon, a national co-ed marketing and sales business fraternity, Strub said she’s very involved with NSME and attends monthly dinners to learn as much as she can from the experts. Her responsibilities in the fraternity include recruitment, planning and organizing events, and creating announcements and advertisements to encourage student membership. “I feel very honored to be recognized at the dinner with some of these amazing business professionals, owners and CEOs,” said Strub, adding that she’s taking seriously a challenge from NSME Akron/Canton to get to know
four people in the business, sending LinkedIn invitations and requesting meetings with individuals. “If I can just get to know some of these people, who knows?” Dominic A. Lofreso, president of Pi Sigma Epsilon and a University of Akron student, said Strub’s “unique charisma” and hard work mentality helps her to maintain a positive attitude regardless of the task at hand. “As a young professional business student, Hali generously expresses her passion for marketing and sales through all of her student involvement,” Lofreso said. “It’s no secret that her fellow peers can see her passion and love for business and the people around her.” Strub said her biggest accomplishment to date is paying for her education with earned money and scholarships. The college student is a shift manager at a local pizza shop and also is a part-time caretaker to an elderly woman. “I am looking for a fulfilling career in advertising,” Strub said on her LinkedIn profile. “I am always learning and building my network. Every day I try to make myself a better worker, student and person. I am excited to see what my future holds, and I understand that I am making decisions now for a better tomorrow.” She said her role model is her grandfather, Charles, who taught her to never give up on anything.
ACHIEVEMENTS IN EXCELLENCE NSME AKRON/CANTON RECIPIENTS Tonnie L. Alliance Corporate relations, major gift officer Hattie Larlham
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onnie L. Alliance is the corporate relations and major gift officer with Hattie Larlham, a nonprofit that serves individuals with developmental disabilities. Alliance’s multifaceted career has included major special events coordination and corporate relations in Ohio, Arizona and Florida. At Hattie Larlham, she has coordinated events and relationships and raised significant funds for the organization. She previously worked with the American Diabetes Association’s Northeast Ohio chapter
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and the American Cancer Society. A 2014 graduate of the Civic Leadership Institute, part of the Cleveland Leadership Center, Alliance sits on the leadership council and is part of the cultivation committee. She is a member of the Association of Fundraising Professionals; the advisory council of the YWCA of Greater Cleveland; the Cleveland chapter of Rotary International; the City Club; Sales and Marketing Executives of Cleveland; and the Republican National Convention Host Committee’s speaker bureau. She earned her undergraduate degree in communication studies from Kent State University and her associate degree from Cuyahoga Community College.
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Brenda S. Basso Senior insurance specialist Associated Underwriters Insurance
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renda S. Basso is a senior insurance specialist with Associated Underwriters Insurance in Akron. She has worked in the employee benefits arena as a consultant for more than 18 years, guiding clients through the maze of employee benefits and health care reform. She partners with employers to develop comprehensive, cost-effective benefits to attract and retain employees while also consulting with clients to identify potential state and federal violations involving employee benefits. She is a member and former officer of the Women’s Board of Aultman Hospital in Canton, serving as co-chair of the 2016 Aultman Angel Auction. Basso earned her undergraduate degree from the University of Mount Union. A lifelong Stark County resident, she lives in Louisville with Matthew D. Basso, owner of Abbeyshire ProTurfcare, and her five children.
Mary Schumacher Becker Vice president of sales and marketing Schumacher Homes
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ary Schumacher Becker is vice president of sales and marketing for Canton-based Schumacher Homes, a custom homebuilder with operations in 14 states. In this role she has bottom-line responsibility for sales results and the development and presentation of the Schumacher Homes brand. Additionally, she oversees Schumacher Homes’ national sales center, comprised of online sales professionals. The company is a National Housing Quality Award winner and recipient of the National Gold Winning Home of the Year. Becker has been a featured presenter at the International Builders’ Show during the management summit, as well as a participant on the “Meet the Experts” panel. She is a graduate of Vanderbilt University and has a master in residential marketing designation with the Sales and Marketing Council of the National Association of Home Builders.
president of operations of a $100 million real estate media company based in Norfolk, Va., Blood now runs and manages several companies he developed with his team over the past seven years, including HarmonHomes.com, CellHomes.com, CellCars.com, ShaleMart.com, Archboard.com, Carmel Digital Printing and Delta Media Company. Delta Media is a real estate application and lead management company and is run by Blood’s partners, which are his son, Jonathan, and Mike Minard. With these partners, Blood in 2006 also started SecureData 365 data centers in 2006 in Canton and Cleveland. SecureData 365 does data storage, co-location and managed services for more than 100 companies worldwide. Blood also is an international trainer and author, having written top-selling real estate self-help books. He is part of La Red and Global Priorities, which offers leadership and business principles training on an international scale.
He has served in a leadership role in every functional division of Sanctuary, spanning marketing, finance, human resources, IT and production. He also was co-founder of Neon Cactus Inc., one of the early providers of digital streaming content, which provided content creation, encoding and hosting services nationally to the real estate industry.
Jolene Colant Director of marketing Hall, Kistler & Company
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ith more than 20 years of marketing and communications experience, Jolene Colant leads the certified public accounting and consulting firm Hall, Kistler & Company in all marketing,
BRENDA BASSO
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oe Brady recently was named executive vice president of marketing and strategic relationships for Simplified Logistics, a mid-market, third-party logistics firm in Westlake. He is a sales and marketing leader in the logistics and supply chain solutions industry, with more than 25 years of experience working to accelerate the growth cycle for startups and entrepreneurial organizations. He is a member of numerous industry-related organizations and has served on the board for T3 Performance and the Gerald P. Murphy Cancer Foundation. He is a frequent speaker on supply chain topics and has published several papers. He graduated from the University of Dayton and the Professional Fellows Program at Case Western Reserve University. He is a black belt in tae kwon do. He lives in Avon with his wife Karen and three children.
Kelly Brown CEO, managing partner Sanctuary Marketing Group
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elly Brown is CEO and managing partner of Sanctuary Marketing Group, a North Canton Internet marketing firm.
social media, coaching and business development initiatives. Among her other accomplishments, she collaborated with a web design firm to update the company’s website, and she leads the charge on the firm’s social media. Her prior experience also includes marketing and communications for the legal and retail communities. She has an undergraduate degree in mass media communication from the University of Akron. In addition to her membership in NSME, Colant is a founding member of Women’s Impact Inc. and serves on the executive board; a member of the Association for Accounting Marketing; and a past chair of BKR International’s marketing committee. She also is a past president of the Canton Advertising Federation.
AUI is proud to recognize
Executive vice president of marketing and strategic relationships Simplified Logistics
CEO SecureData 365 rnie Blood is a business entrepreneur with more than 40 years of client development experience. After retiring as executive vice
Brown has 20-plus years of experience leading entrepreneurial organizations. He joined Sanctuary after serving 10 years as the CEO and marketing director of Communication Resources Inc., a Canton-based publisher serving the church market for more than 38 years. Brown also in 2008 founded Office Space Coworking in Akron, followed by additional facilities in Cuyahoga Falls and Canton before he sold the business in 2011. Prior to that he was with EYEMGInteractive Marketing Group in Akron with responsibilities for business development, project management and financial reporting. Brown has a blend of expertise in the planning and execution of both traditional and emerging direct marketing media channels.
Joe Brady
Ernie Blood
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Congratulations on your Achievements in Excellence Award!
Phone: 330.645.6338 n Toll-Free: 800.671.7665 n Email: info@auiinfo.com 2876 South Arlington Rd., Akron, Ohio 44312 www.auiinfo.com
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Christopher Faircloth Akron lending manager Economic and Community Development Institute
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hristopher Faircloth is Akron lending manager at the Economic and Community Development Institute. The ECDI brings training and technical assistance, as well as loan capital, to new and existing entrepreneurs in Summit County to bridge the loan gap. At ECDI, he uses the skills he honed in the banking realm with more of a community focus. He has eight years of consumer and small business banking and finance experience at national and regional banks, and he launched a niche advertising brokering startup. Faircloth is a 2005 graduate of the University of Akron’s College of Business Administration and active in the Akron community. He is a member of the young professional service organization Torchbearers; a Greater Akron Chamber 30 for the Future recipient; and a member of the board of the Highland Square Neighborhood Association and PorchRokr music festival planning committee.
Brian Flenner
Cullen Hardman
Director of ticket operations Akron RubberDucks
Marketing representative Mercy Medical Center
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rian Flenner, director of ticket operations, joined the Akron RubberDucks in March 2013. He leads and recruits a 14-person sales team, which has generated a 66% revenue increase and a 27% gain in attendance over two seasons. Most of his career has been spent in sports marketing and sales, including in professional soccer, college athletics and amateur hockey, and as a consultant. His specialties include product marketing, promotions, sponsorship activation, event management, new business development, customer relationship management, call center management, team building, strategic planning, budgeting/forecasting and marketing planning. He earned his graduate degree in sports management and an undergraduate degree in business administration (marketing and logistics) from Ohio State University. Flenner serves on the boards for the Green Area Chamber and Green Youth Basketball Association, and he is a volunteer with the Boy Scouts. He lives in Green with his wife and two children.
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ullen Hardman joined the sales team at Mercy Medical Center in 2013 after starting as a human resources intern in 2011 and working as a human resources office service specialist. After earning his undergraduate degree in organizational communication, he was appointed as a marketing representative. He sells the Your Choice program at Mercy Medical Center and works primarily in the field, establishing and maintaining new business for Mercy by promoting its products and services. He is responsible for generating new business leads and facilitating health fairs for employer groups in Alliance, Canton, Carrollton, Uniontown, Louisville, Massillon, North Canton and New Philadelphia. Hardman has been involved with NSME since 2014 and serves on the board of directors as director of membership recruitment. He earned his undergraduate degree in organizational communication from
Kent State University. He resides in North Canton.
Ryan Harrington President Sales Team Inc.
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yan Harrington started Sales Team Inc. in 2010, providing professional sales support to businesses on a contract basis. Harrington developed a sales process that works across multiple verticals. His company has since closed hundreds of transactions that eclipsed $10 million in revenue for clients. Based in Brunswick, Sales Team has coverage across the Midwest with sale representatives and internationally for inside sales. Harrington oversees a staff of sales professionals who can sell products and services in a wide range of industries and provide subcontract sales strategy, support and expertise. Prior to starting Sales Team, Harrington was a sales professional for large organizations in the environmental and software fields. In those positions, he created new territories for sales; developed strategies for selling new products and services; implemented sales strategies for new business sectors and territories; and forged relationships with small and large organizations, experiences that have helped to set standards for Sales Team Inc.
Toby Hoy Regional manager Residential Bancorp
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oby Hoy worked in the field of residential real estate management as the managing partner of Carlton Property Management before entering the mortgage industry. Now, he is the regional manager at Residential Bancorp, where he provides oversight of operations to ensure compliance with federal, state, agency, internal and investor guidelines and regulations. Additionally, among other responsibilities, he watches over investor development and relationships management; external quality assurance and quality control procedures; and recruitment, training and supervision of multistate sales and support staff. Hoy has a wide range of experience in multiple fields, including real estate and finance, with significant origination, risk assessment, investment analysis, property management and collateral valuation experience. He also has education and training experience in instructional design, training delivery and skill assessments.
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Hoy is an adjunct faculty member at Stark State College and Ashland University, and he has taught for the Stark County Association of Realtors and the Ohio and National Associations of Mortgage Professionals, where he was a master certified instructor. He also is a senior instructor and pre-license education department chair for the Tuxedo Training School of Real Estate. In 2014, Hoy was recognized by the Stark County Association of Realtors as the instructor of the year.
Anne Hydock Business development Skyline Event Services
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nne Hydock is a sales professional with extensive experience in the trade show, multimedia, commercial real estate and hospitality industries. Since 2013, Hydock has been head of business development at Skyline Event Services, a trade show marketing company that designs displays, graphics and custom builds. In that role, she specializes in direct B2B sales, new client business, relationship cultivating and social media. Hydock, who reinvented herself during the recession after 19 years in commercial real estate, also has professional experience with Smart Business Network, the American Lung Association of Ohio and Forest City Enterprises Inc. She has been honored twice by the American Lung Association of Northeast Ohio for her passion and work with the SmokeFree Ohio campaign and Asthma Walk. Hydock studied business and communications at Cleveland State University and is a member of the Cleveland Sales & Marketing Executives Association. Hydock has one daughter and lives in North Olmsted.
Karen Krantz Individual sales coordinator Aultman Health Foundation
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aren Krantz is an individual sales coordinator for AultCare’s individual product. Since joining the Aultman Health Foundation in 2000, Krantz has worked in multiple aspects of the health care industry, and as a result has gained a wealth of knowledge in assisting her clients with their individual needs. While Krantz’s experience in the health care field is a great asset to the AultCare team, she also focuses on personalized customer service. As such, Krantz exhibits a commitment to building relationships
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with a personalized touch to the members and clients she interacts with.
Doug Lane President North Canton Area Chamber of Commerce
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oug Lane has served as president of the North Canton Area Chamber of Commerce since 2009. He also is president of the North Canton Community Growth Association, a member of the North Canton Civil Service Commission and on the board of the Stark Carroll Oil and Gas Partnership. Lane served two terms on city council and was on the city’s planning and zoning boards. He also
has served on the boards of several organizations and managed the fourcounty Census 2000 Canton office. Additionally, his 45-year radio career highlights include twice being named Billboard’s Country Music Program Director of the Year. He is a Kent State University graduate.
Damon Linder Technical services director Lampion Companies
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amon Linder is technical services director at Lampion Companies in Wadsworth, a traffic signal and outside lighting installation, service and maintenance provider. Linder transplanted from New York City to the Midwest to attend Ketter-
ing University, where he earned an undergraduate degree in mechanical engineering, and Tiffin University, where he earned an MBA. Linder also holds the project management professional credential and has experience with various companies in the automotive, medical device and construction industries, including working for consulting firms, small companies and large multinational organizations. Prior to Lampion, Linder served as president of Beyond Z Training & Consulting Inc. He is an adjunct professor in the Tiffin University School of Business, specializing in small business management and entrepreneurship. He resides in West Salem with his wife and three daughters.
Brent Lowe Director of new business development InfoCision Inc.
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rent Lowe, director of new business development, started at InfoCision Inc. in 2014. InfoCision, a contact center solutions provider, specializes in a wide array of services to enhance client brands and support sales and marketing channels, including business-to-business, customer retention and acquisition, inbound sales, inbound customer care, direct response and multi-media services. Lowe, who is credited with landing several key accounts while a member of the InfoCision sales team, also is a member of the Society of Consumer Affairs Professionals (SOCAP) and has served as a director of the Ohio chapter. He received SOCAP’s 2015 STAR award for his outstanding contributions to the success of the Ohio chapter.
Kathy Masterson Executive director NARI Greater Cleveland
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athy Masterson is executive director of NARI (National Association of the Remodeling Industry) Greater Cleveland, a nonprofit trade association focused on the remodeling industry. Masterson has spent the majority of her career working in nonprofit management and has been with NARI since 1997. As executive director, Masterson oversees all day-to-day operations while providing strategic leadership for the future success of NARI Greater Cleveland. She also is responsible for the management of the NARI Home Improvement Show, which was recognized in 2008 by the National Association of Consumer Shows as “The Consumer Show of the Year.” Masterson also has a great passion for helping her community. She was the walk chairwoman for the inaugural “Walk Now for Autism” in Cleveland, which was recognized in 2007 as the highest fundraising inaugural walk for Autism Speaks. Masterson is a native of Cleveland and lives in Fairview Park.
Jeff McMahan Account supervisor Innis Maggiore
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eff McMahan has spent more than 30 years in the advertising industry — the past 15 as an account supervisor at Innis Maggiore. McMahan is responsible for the oversight of a variety of Innis
Maggiore’s top clients, including Aultman Hospital, The Goodyear Tire & Rubber Company, MCTV Internet/TV/Phone and BellStores, a 54-location convenience store chain. He is a graduate of Leadership Stark County, a member of the NSME Board of Directors and past president of the Massillon Museum board of trustees. He earned a degree in visual communications from the Art Institute of Pittsburgh. He resides in Massillon and has three children. McMahan is a descendant of John Know Witherspoon, a founding father and signatory of the Declaration of Independence.
Frank Salamone Community relations manager Montrose Auto Group
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rank Salamone, a trustee for the Tallmadge Chamber of Commerce, initiated a comprehensive community relations program offering area chambers the exclusive use of the Montrose dealership showrooms for business networking functions. The move transformed the retail automotive facilities into valued community resources. Salamone, who is skilled in email marketing, consumer marketing, loyalty marketing and local marketing, has spent more than 35 years in retail automotive, integrating the Northeast Ohio Montrose Auto Group into the fabric of the communities it services. He has done this through active participation in area chambers of commerce, as well as grassroots marketing efforts to promote the group’s 13 dealerships.
Deborah Scheetz Director of professional outreach and physician relations Affinity Medical Center
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eborah Scheetz is a seasoned health care business development professional whose experience spans the continuum — from retirement living and skilled nursing to long-term acute care and the hospital setting. She specializes in new business development; public relations strategy; physician development and onboarding; team building; consultative/value-added partnering; strategic marketing planning; media and advertising; service recovery consulting; and understanding and applying Customer Relationship Management Systems (CRM). She is an experienced speaker and presenter. Scheetz also is on
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the Stark County advisory board for Coleman Behavioral Health Services and is an advocate for those afflicted with mental health challenges and addictions. As the director of professional outreach and physician relations for Affinity Hospital in Massillon, Scheetz networks with physicians and stakeholders to educate them on the quality services and centers of excellence offered by the hospital.
Kristin Selby Director of traffic and workflow Grabowski & Co.
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ristin Selby, director of traffic and workflow at Grabowski & Co., a marketing communications strategy firm in Uniontown, applies a hard-charging personality to whip processes into shape and keep projects running smoothing. Her skills, knowledge and abilities are respected by co-workers and clients.
Selby is on the board of the Domestic Violence Project. A 2003 Ashland University graduate, she lives in North Canton with her husband, Shawn.
Jamie Smart Director of communications and special projects North Canton City School District
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amie Smart, a Hoover High School alumna, is the North Canton City School District’s first director of communications. A results-focused professional with 20 years of industry experience, she has developed and strengthened the school district’s communication program over the past two years. Her work includes school public relations, district communications, social media and website work. She leads the district communications committee and oversees the communication internship program she began in 2014, which allows four
February 22, 2016 S7
to six high school seniors to work in the district office for one period a day as marketing/communication interns. Smart earned her newspaper journalism degree from the Syracuse University Newhouse School of Public Communications. She worked in online publishing and digital marketing throughout her career. Prior to North Canton City Schools, Smart spent eight years with Hitchcock, Fleming and Associates in Akron, winning several awards. She and husband Bob have three sons.
Pat Vickers Senior sales associate Greater Akron Chamber of Commerce
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at Vickers works in Summit, Medina and Portage counties as a senior sales associate with the Greater Akron Chamber. Her goal is to develop new relationships with the businesses and people who keep the area strong
by working, playing, shopping and dining in the region. Vickers helps area communities grow by assisting them in strengthening their relationships with loyal customers, and in developing new customers by connecting people to business and business to people. She has experience in sales; business-to-business sales; advertising and sales management; cold calling; and networking. She networks in the KNOW (Knowledgeable Network of Women), as well as joins in with other opportunities of networking in Summit, Medina and Portage counties.
Kevin Warrene
helping businesses work on their businesses. He also does customer consulting on marketing, menu development, staff training and operational efficiencies. A former chef and food and beverage director in the country club and hotel industry, Warrene’s experience led to a career in sales and sales management. He has worked in food service distribution since 1985 in varying capacities, from street sales representative to sales management roles. As a street sales representative, Warrene achieved annual sales of more than $3 million and managed teams with annual sales of $17 million. He lives in New Philadelphia with his wife Sue and children, Josh and Cyndi.
Business development manager Avalon Foodservice
Beth Wood
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Print production manager InnerWorkings
evin Warrene is business development manager with Avalon Foodservice. His focus is to make restaurant operators more profitable. For more than 30 years, he’s been
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eth Wood is print production manager at Inner-
CONGRATULATIONS DR.GERSHEN! Northeast Ohio Medical University Proudly Salutes President Jay A. Gershen, D.D.S., Ph.D., for being honored as Executive of the Year by the Akron/ Canton National Sales & Marketing Executives. Dr. Gershen’s leadership has been essential to helping us understand the health and economic needs of Northeast Ohio, to providing educational and wellness services for our communities and to building partnerships to make it all happen. The definition of sales and marketing. It’s no wonder that he is being recognized as Executive of the Year!
neom ed.edu
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Workings Inc., a global marketing execution firm that provides managed print and promotional procurement solutions to corporate clients. Wood manages relationships and print spend onsite for The Timken Company and TimkenSteel Corporation. Her pool of stakeholders comes from diverse roles that require a wide variety of materials to support their activities. Wood, who is motivated to learn and share the most current postal regulations with her clients, also consults and provides support for The Goodyear Tire & Rubber Company and the Scotts Miracle-Gro accounts. A lifelong resident of Summit County, Wood has more than 30 years in the printing industry.
Following a career with several printing companies in Northeast Ohio, Wood joined InnerWorkings in 2008.
John Zielinski Executive vice president, vice president sales and marketing University Polymer & Rubber Ltd.
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ohn Zielinski, executive vice president of University Polymer & Rubber Ltd., has a 30-year career in manufacturing sales, sales management and general management of manufacturing companies. He previously worked for RBX Industries as business unit manager, and at Bettcher Manufacturing LLC
as director of sales. He is responsible for the overall strategy to increase revenue, retain customers and develop new markets. He began an independent representative group from scratch that maintains its viability and success. Among his milestones are doubledigit sales growth in several different industries, the ability to learn varied manufacturing processes over a variety of raw materials, leading sales teams to new achievements and overseeing successful acquisitions. He is Diocese of Cleveland CYO Athletic Advisory Committee chairperson. He lives in Cuyahoga Falls with his wife and daughter, with a son who lives nearby in Akron.
KR IS
1973 WILLIAM C. RICHARD JR. ERIK International Co.
1994 WILLIAM H. CONSIDINE The Children’s Hospital Medical Center
1974 M.G. O’NEIL General Tire Company
1995 RICHARD W. YOUNG Akron Regional Development Board
1975 FRED L. ALBRECHT Acme-Click
1996 THOMAS G. MURDOUGH JR. The Step2 Company
1976 WILLIAM C. ZEKAN A. Schulman, Inc.
1997 DONALD PLUSQUELLIC Mayor, City of Akron
1977 RAYMOND C. FIRESTONE Firestone Tire & Rubber Company
1998 KATHRYN HUNTER First Akron Corporation
1978 CHARLES J. PILLIOD, JR. The Goodyear Tire & Rubber Company
1999 WILLARD HOLLAND FirstEnergy Corporation
1979 JAMES H. OTT Novar Electronics
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IN
GOOOOAL!!! Honoring our own Kristin Selby, 2016 NSME Achievements in Excellence award winner. We’re so happy you’re on our team. grabowskiandco.com
PREVIOUS WINNERS OF NSME AKRON/CANTON EXECUTIVE OF THE YEAR AWARD
1980 JOHN S. BALLARD Mayor, City of Akron 1981 DR. DOMINIC J. GUSSETTA President, The University of Akron
2000 PHILIP H. MAYNARD ASW Services, Inc. 2001 DR. LUIS M. PROENZA The University of Akron 2002 FREDRICK J. KRUM Akron-Canton Airport
1982 NO AWARD
2003 THOMAS J. STRAUSS Summa Health Systems
1983 ROY L. RAY Mayor, City of Akron
2004 TONY O’LEARY Akron Metropolitan Housing Authority
1984 ROBERT W. CLARK Goodyear Aerospace Corp.
2005 MARTIN HAUSER SummaCare, Inc.
1985 BLAKE H. HOOPER Morgan Adhesive Company
2006 GARY TAYLOR InfoCision Management Corp.
1986 RAYMOND D. MEYO Telxon Corporation
2007 W. RILEY LOCHRIDGE ComDoc, Inc.
1987 EDDIE ELIAS Eddie Elias Enterprises
2008 ALAN BLEYER Akron General Medical Center
1988 ROBERT E. MERCER The Goodyear Tire & Rubber Company
2009 TIM TIMKEN The Timken Company
1989 HOWARD L. FLOOD First National Bank of Ohio and First Bancorporation
2010 DANIEL COLANTONE The Greater Akron Chamber
1990 ALBERT F. GILBERT, Ph.D. Summa Health Systems Akron City Hospital 1991 DAVID L. BRENNAN The Brenlin Group, Amer Cunningham Brennan Co., L.P.A. 1992 DR. WILLIAM V. MUSE The University of Akron 1993 RUSSELL VERNON West Point Market
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2011 DOUG KOHL Akron YMCA 2012 THOMAS WALTERMIRE Team Northeast Ohio 2013 DR. FRANK DOUGLAS Austen BioInnovation Institute in Akron 2014 VIRGINIA ALBANESE FedEx Custom Critical 2015 JOE S. KANFER GOJO Industries
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