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PPG Cleveland seeing growth Demand for vehicles, energy-saving paints leading to new jobs By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
See AKRON Page 7
See PPG Page 21
SCOTT POLLACK
Dramatic, perhaps, but Akron’s health care arena is becoming a bit more cutthroat than it was in the past. Sure, Akron General and Summa Health System always have locked horns, though the rivalry never seemed quite as intense as the one between University Hospitals and the Cleveland Clinic. But now that the Clinic, UH
Products that help automakers save time, energy and money are driving growth at PPG Industries Inc.’s Cleveland plant. The site serves as PPG’s largest automotive coating plant in the United States and its global technical center for automotive coatings, churning out gallons upon gallons of vehicle paint — and plenty of original product ideas — each year. Since 2011, the Cleveland site, at 3800 W. 143rd St., has hired more than 130 employees, said plant manager Keith H. Schneider. After the recession ended, the auto industry “roared back,” Schneider said, noting that even more carmakers turned to the United States after the tsunami in Japan in March 2011. And Schneider expects the growth to continue. The company’s paint products for OEMs might make the manufacturing process simpler for automakers, but there’s a lot of complexity behind the scenes that drives the need for more labor. And, said technical director USCA (U.S./Canada) Keith Johnston, the cars on the road today are more than 10 years old, on average.
A NEW BATTLEFIELD Outside systems investing in Akron hospitals causes worry for some By TIMOTHY MAGAW tmagaw@crain.com
E 24
ver one for hyperbole, Akron mayor Don Plusquellic in April warned that the growing interest of the state’s health care behemoths’ in his city’s hospital systems could turn Akron’s health care industry into a battlefield fit for the Civil War.
“I do not want these outside national interests coming into Akron, the blue coats and the gray coats, with the result that we become a Gettysburg of health care, left to pick up the pieces after the battle is done by shifting health care decisions from local, caring people in white coats, to some executives in 3-piece suits far from Akron,” Plusquellic said during his state of the city address.
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ALSO INSIDE
GARBAGE TO GAS How a Cleveland company is creating resources from recyclables ■ Page 4 PLUS: ADVISER ■ MARKETPLACE EVENTS ■ & MORE
Entire contents © 2014 by Crain Communications Inc. Vol. 35, No. 24
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 16 - 22, 2014
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com
Congratulations to the Hathaway Brown Class of 2014, 100% of whom will now be off to continue their studies at some of the best colleges and universities in the world. HB graduates are equally at home at historic Ivy League schools, top public and private universities, specialized conservatories, and small liberal arts colleges in the U.S. and abroad, where they live out the motto of their alma mater: “We Learn Not For School, But For Life.”
Class of 2014 College Destinations American University
Miami University (4)
University of Cincinnati
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Northeastern University (1)
University of Pennsylvania (2)
Northwestern University (3)
University of Richmond
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Pennsylvania State University (2)
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Crain Communications Inc. Among the 84 members of the HB Class of 2014, one student earned a perfect score on the SAT, two had perfect ACTs, nine were named National Merit Finalists, one is a National Achievement Finalist, and nine are National Merit Commended Students. Many were awarded merit scholarships from their schools of choice, and several have committed to play collegiate-level sports.
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 16 - 22, 2014
SOLD 12200 ALAMEDA DRIVE STRONGSVILLE, OHIO
Newmark Grubb Knight Frank is pleased to announce the sale of 12200 Alameda Drive in Strongsville. This fully occupied, 86,000 square foot building sold for $43.75/SF. Terry Coyne represented the seller.
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1350 Euclid Ave, Suite 300 Cleveland, Ohio 44115
Turning scraps into fuel Company makes energy sources from leftover food products By KATHY CARR clbfreelancer@crain.com
Cleveland Browns Hospitality Group in 2013 redirected 35 tons of food scraps that otherwise would’ve been dumped into a landfill, instead sending the energy-rich material to a Cleveland-based company that recycled the waste to biogas. Forest City Enterprise’s Tower City Center that same year diverted 30 tons of food waste, or the equivalent of about 30 garbage bags a day, using the same sustainable process that grinds food waste into a slurry which natural gas vehicles haul away for energy conversion. A partnership between InSinkErator, a division of global technology conglomerate Emerson, and Cleveland-based Quasar Energy Group is setting an example for how companies and municipalities throughout the country can take sustainability cues from food service operators in Cleveland. The process works like this. InSinkErator installs and monitors for its food service partners an organ-
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n e o m e d . e d u
ics recycling system, called Grind2Energy, which grinds food waste — anything from orange peels to grease — into a liquid mixture that is stored in a holding tank. Quasar transports the material to its anaerobic digesters, which convert the food waste into renewable energy in the form of electricity, natural gas or nutrient-rich fertilizer. The average commercial kitchen generates 2.25 tons of food waste each week, so recycling that waste creates enough electricity to power 42 single-family homes. “We’ve created a model for sustainability, with Quasar leading the nation for a technology that creates a perfect closed-loop solution,� said Heather Dougherty, sales territory manager for Grind2Energy. The process substitutes wasteful garbage bags, reduces trash pickups and minimizes pest control costs, Dougherty said. She expects more sustainably minded state and local governments, which have been experiencing trash haul increases of 7.1% annually, to take notice of the technology.
Dougherty was unable to quantify specific installation costs, stating there are a multitude of factors that influence the investment, including a client’s space considerations and waste volume. Talks surrounding a partnership between the food waste recycling system manufacturer and Quasar began around 2009, Dougherty said. Since then, Grind2Energy and Quasar have forged partnerships with a total of five organizations, three of which are in Ohio. Representatives from Quasar, Grind2Energy and Cleveland Browns Hospitality Group last Tuesday, June 10, discussed how the process can affect broader change in a presentation titled “Achieving Food Waste Recovery through Anaerobic Digestion� at Tower City Center’s Sustainable Cleveland Center. The program is part of Mayor Frank Jackson’s 10year Sustainable Cleveland 2019 initiative, with 2014 focusing on achieving zero waste. “In the year of zero waste, this See WASTE Page 21
JobsOhio to date is slow to spend By JAY MILLER jmiller@crain.com
In the four months that JobsOhio has shown how it has spent its state liquor profits, the nonprofit is reporting spending only $3.2 million of the nearly $180 million it has in its war chest. And of that $3,226,000 in loans and grants, only three of 22 grants it has made to grow businesses across the state — or $390,000 — found its way to businesses in Northeast Ohio. That doesn’t mean that the
state’s economic development efforts are shortchanging Northeast Ohio, or even that JobsOhio isn’t making a robust effort to encourage business development in the state. Dozens of area companies have won a variety of financial incentives. But most of the money is state tax or bond money that flows through agencies like the Ohio Controlling Board or the Ohio Tax Credit Authority. But JobsOhio uses its private, nonprofit status to shield how it invests its money and how it decides whether to recommend how state
Volume 35, Number 24 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Š 2014 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
agencies use state money for loans or grants. It’s so guarded that little is known about its process, even in the economic development community. Economic development professionals give JobsOhio high marks for speeding up the process of economic development dealmaking. But they are not seeing how JobsOhio is using its financial muscle — the $180 million in liquor profits — to sweeten the deals. Asked how JobsOhio decides to use its own money when it puts toSee JOBS Page 6
Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 482079911, or email to customerservice@crainscleveland.com, or call 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
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WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
5
Third Winter damage driving repairs Ohio Frontier Mechanics seeing increase in work as potholes, poor road conditions still linger
should last beyond plan for 4 years
By JAY MILLER jmiller@crain.com
I
t’s not something he feels like jumping for joy over, but the harsh winter has been good for Randy Harb’s business. Harb, co-owner of Harb Automotive, said the vicious freeze-thaw cycles that cratered the region’s roads and highways beginning last November has brought an unprecedented amount of front-end work into the two shops in Parma and Brunswick he runs with brothers Rick and Ron. “The rate of increase we’ve had this year from pothole damage and insurance claims has been phenomenal,” Randy Harb said. “I bet you we’re seeing a 20% or 25% increase as far as suspension damage — anything from bent rims to blown out tire sidewalls to broken springs. I’ve even had a few cracked frames in cars that had a weak frame.” Harb particularly remembers a 2011 Hyundai with barely 30,000 miles on it. It had a broken spring from an impact with a chuck hole, and the broken spring chewed up a tire. “It’s been good for business, but it’s unfortunate for the customer with a $500 or $250 (insurance) deductible, or they have to pay for it out of pocket,” he said. “We feel for them, but it is what it is.” Although the past winter was neither the coldest nor the snowiest on record, its repeated below-zero temperatures turned roads into cratered obstacle courses, damaging vehicles. The region’s cities, and the Ohio Department of Transportation, in turn, now are paying the price for repairing those roads. The Ohio Insurance Institute reports that this was the second-costliest winter in terms of insured losses since 1993. The institute represents property and casualty insurers, including auto insurers, operating in the state. Car owners may also make claims against the community whose pothole caused damage. Dominic Umek, general manager at Conrad’s Tire Express and Total Car Care, said he hasn’t seen a significant rise in the amount of suspension repair work seen by technicians at the chain’s 34 repair shops. But tire sales are another story. “We did see an increase in tire sales because of the severity of the winter weather and because the previous two winters were pretty mild,” he said. “Our tire business was up for the whole winter starting with the first snowfall in November over a five-month stretch.” Umek said he believes the rise in tire sales was less a matter of damage from potholes and more a matter of the persistence of snow- and ice-covered streets, despite the Cargill salt mine under Lake Erie going three shifts a day, seven days a week to provide communities with salt to keep the roads clear. In addition to drivers, the cruel winter has taken an as-yet-untallied toll on public purses, as cities and the Ohio Department of Transporta-
By CHUCK SODER csoder@crain.com
MCKINLEY WILEY
Randy Harb, co-owner of Harb Automotive, at his Parma location. tion went the extra mile in a sometimes futile effort to keep roads clear and now are furiously trying to cure the road pox epidemic. Those repairs are spurred on by the liabilities the agencies may incur if they don’t repair their potholes in a timely fashion. “There were a record number of days our (snow plow) drivers were on 12-hour shifts,” said Amanda McFarland, spokeswoman for ODOT’s Cuyahoga County office. “When we’re on 12-hour shifts (instead of eight-hour shifts), our people are receiving overtime.” She was not able to estimate how much has been paid in overtime as a result of the difficult winter. McFarland said it’s too early to tell if the district office will see higher-than-normal costs for pothole filling. That work has only been under way since early May because of the late snowfall, which delayed the opening of asphalt plants. “This winter we didn’t do much patching at all because there was so much snow on the ground,” she said. Road crews used a more expensive product called cold patch to make emergency repairs on the most dangerous chasms in below freezing weather and traditional hot patch asphalt after the spring thaw.
In March, the city of Cleveland hired Patch Management Inc., of Fairless, Pa., paying the pothole specialist $225 an hour for as many as 1,100 hours. The company’s unique “Pothole Killer” trucks use both materials to fill holes quickly in almost any weather. The city has not yet calculated the final cost of using the Pothole Killer. The company serves cities from the East Coast to Chicago. “This year, they called early,” said Patch Management’s chief operating officer, Craig Baclit, in a statement. “Even in that recent single-digit weather our crews were out making the roads safer and smoother.” Even Bay Village, a West Side community outside the traditional Snow Belt, had to step up its road work. Mayor Debbie Sutherland said that from January until the end of May, the city paid city workers $10,044 for a total of 192 hours of work filling potholes with 50 tons of cold patch (at $100 per ton) and 28 tons of hot patch at $49.50 per ton, for a total cost of $16,430. “This is probably a little higher than a normal year,” she wrote in an email. “But (it’s) certainly not a budget buster for us.”
Residential resurgence helps building owners By STAN BULLARD sbullard@crain.com
David Bishoff belongs to a group of office building owners in downtown Cleveland who have had little to celebrate for decades. However, the bumper crop of transformations of older office buildings to apartments or hotels, and the demolition of old buildings to make way for new projects, has helped to change all that. “I felt good about the Cleveland market three years ago,” said Bishoff, whose Columbus-based
E.V. Bishoff Co. owns the City Club and Superior buildings, at 850 Euclid Ave. and 811 Superior Ave. “I feel great about it now.” A just-completed study by the Cleveland office of the Newmark Grubb Knight Frank brokerage flushes out the new dynamic sweeping a segment of the office market that stood still for years in the city. In its broadest terms, the study finds that from 2009 — when Willoughby-based K&D Group reopened the one-time Atrium office complex as Residences at Six Six Eight on Euclid Avenue —
to proposed projects coming online by 2017, the apartment conversions promise to reduce the class B market 25% to 7 million square feet from 9.3 million square feet. The class C market of buildings that are obsolete, often over age 60, will be cut 50% to 2.34 million from 4.64 million square feet. In other words, the conversion will shrink the market by as much office space as in three Key Towers. The conversions have slashed the size of the class B and C office market by 15%. The most See BUILDING Page 6
The Ohio Third Frontier program’s original plan was to spend $700 million over four years. The real timeline probably will be longer. The state has backed off from the spending schedule it previously set up for the economic development program, which was designed to spark the development of new technologies and help the state shed its Rust Belt reputation. The Ohio Development Services Agency, which manages the day-today operations of the Third Frontier, originally planned for the program to give out $175 million in grants and loans each year, from 2012 through 2015. Easier said than done. The development services agency and the Third Frontier Commission — the board that decides which high-tech projects and companies will receive funding — made several changes to the various programs within the Third Frontier a few years ago, after voters passed a bond issue that pumped an extra $700 million into the program. Those changes caused delays, where were exacerbated when the commission started demanding better information from some organizations submitting proposals. As a result, the commission didn’t award the full $175 million in either 2012 or 2013. An extra $105 million from those years rolled over into this year’s budget. The rate of spending has picked up: The commission just last week gave out $85 million, roughly half of which went to organizations in Northeast Ohio. At this point, however, the Ohio Development Services Agency isn’t trying to catch up with the spending schedule it set up for the Third Frontier a few years ago. Instead of mixing the $105 million rollover with a full base budget of $175 million, the agency reduced the size of the 2014 base budget to $100 million. That’s a 43% decrease, if you don’t count the rollover. The change hasn’t generated debate among members of the Third Frontier Commission. Granted, it’s not like their budget is being shortchanged. Combine the base budget with the rollover, and you’ve got $205 million for 2014. That’s more money than the commission typically spends in a year. But why didn’t the development services agency set up a plan for the commission to catch up with the original spending schedule? See FRONTIER Page 22
CORRECTION The June 2 list of Largest Public Companies reported an incorrect line of business for Omnova Solutions Inc. The correct description is “a producer of specialty chemicals and functional surfaces.”
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Building: Market dynamics changing continued from PAGE 5
profound change is in the worst buildings in the market — those more than 60 years old or functionally obsolescent — as that market is 32% smaller than in 2011. Newmark Grubb classified B buildings as those in the average rental range; class C buildings are below average. (Top-tier class A buildings have superior finishes, locations and the market’s highest rents.) Historically, the supply of older buildings has been so large that building owners have been unable to raise rents or fund many improvements to capture more tenants. However, Newmark Grubb estimates that owners of class B buildings have been able to raise rents eight cents over the past year to $17.11 a square foot. Meantime, owners of class C buildings have been able to raise rents 94 cents — an eye-popping figure to Cleveland office brokers and owners — to $13.66 a square foot. By contrast, the average rent for downtown’s newer or class A office space is still far higher, at $21 a square foot. Newmark Grubb’s survey estimates 15 of the 17 buildings earmarked for conversion to office buildings or hotels are in its survey. It counts only buildings with more than 20,000 square feet of rental space that are being actively marketed. The survey also does not include, among others, buildings such as the 117 St. Clair Building, which was razed to yield a site for the Global Center for Health Innovation, and the Columbia Building, 112 Prospect, which went down so the Collection Auto Group parking garage could go up to serve Horseshoe Casino Cleveland.
$1 makes all the difference Jonathan Mokri 440.526.8700 jmokri@cbscuso.com www.cbscuso.com
JUNE 16 - 22, 2014
Those steps are starting to be office market game-changers. Alex Jelepis, executive managing director at NGKF, said little movement in the older buildings in terms of rents or occupancy has been the norm for years.
“In New York City, they would say it’s a waste of time to talk about $1 a square foot,” Jelepis said. “In our market, it is significant. It is also a new trend. Few occupiers (of space) have seen it yet, but it will become more apparent over the next two years.” The shift is already apparent at the Hanna Building, owned by the PlayhouseSquare Foundation. K&D’s conversion of the adjoining Hanna Annex to the Residences at Hanna allowed the foundation to move 20 tenants to the Hanna and increase its occupancy 10% to make it 87% leased, according to Allen Wiant, strategic development director for the foundation’s PlayhouseSquare Real Estate Services unit. “The market is evolving,” Wiant said. “There is finally a realization by owners and the brokerage community that this dynamic is taking place. Some of the older buildings cannot be competitive. It’s got a better chance as residential than as old or tired office space. At the same time, do not worry about fewer options for low-rent offices. Wiant also notes well-maintained older buildings will continue to attract tenants who want that ambiance rather than boxier new buildings. Michael Deemer, vice president of business development at the nonprofit Downtown Cleveland Alliance which oversees downtown marketing, maintenance and security, said he has not seen the shrinking of the market diminish downtown’s ability to attract and retain businesses. “The fact of the matter is that we have ample vacancy in class B and C buildings to meet demand,” Deemer said. “Removing the oldest buildings from the (office) market has allowed us to concentrate on class B buildings that are in demand and are being actively marketed.” Those numbers remain staggering. Newmark Grubb’s first-quarter market report, the most recent available, reports a 22% vacancy rate among class B buildings and 26% vacancy among class C build-
ings. Between the two classes of office buildings, 3 million square feet of office space sat empty as of April 30, the most recent data available.
The appeal of downtown Bishoff believes that owners of class B buildings will be better able to capitalize on the shrinking office market than owners of functionally obsolescent buildings. Chances are, he said, class B buildings have increased ability to meet electrical and communications demands of contemporary office tenants. Banks also are unwilling to provide loans to older buildings to outfit space for new tenants, which costs as much in an old building or a new one. In the case of the City Club and Superior buildings, Bishoff declined to provide statistics. “We’re private with a capital P. We have captured more than our fair share of the market,” Bishoff said. “You or I can probably go on top of any building downtown and point to several buildings that have not been able to increase rents.” However, Bishoff noted his family-owned enterprise buys buildings to hold them in portfolio rather than just improve them for resale. As a result, Bishoff is constantly fine-tuning its approach, such as adding conference rooms, improved internet service, and even bought a parking garage to provide parking as part of its rental package. Although Bishoff noted he is getting more inquiries and showings due to competing buildings going off line, he believes another important factor is in play. “When you have K&D Group convert 1717 (East Ninth St.) to apartments and Geis Cos. convert Ameritrust to apartments and a hotel, they are marking downtown a better place to do business,” Bishoff said. “It’s not purely shrinking supply. The uptick is more a function of the fact the neighborhood that is downtown is more attractive. It will cause someone to keep his office downtown rather than to move it to Independence.”
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gether a financial incentive package, one economic development professional actively involved in negotiating for incentives with the nonprofit couldn’t offer an answer. “I can’t say for sure,” said the executive, who asked for anonymity since he continues to work in the field. “We’ve asked pretty much anybody who we work with — from regional economic development groups to the state — what’s going on and nobody can answer.”
Network news Unlike a state agency, the private JobsOhio is not required to disclose its decisionmaking process or even disclose what it is doing with its money. And it expects the communities, other economic development agencies and private economic development consultants to maintain its wall of silence, even though they often are making decisions about public money. Said another economic develop-
ment professional who was involved in negotiating an expansion loan for a company: “We can’t talk to anybody about it because it’s JobsOhio and they’re private. But the paperwork on the loan offer came from (the Ohio Development Services Agency.” Asked how JobsOhio decides whether or not to use its own loan programs or those of the remaining state programs, spokesman Matt Englehart said in an email, “Every project is different, and requires different kinds of assistance to move forward successfully. That does not always include JobsOhio dollars. “The state, JobsOhio, and the JobsOhio Network partners work together as a team to develop plans that support companies seeking to grow and expand in Ohio,” he wrote. The Jobs Ohio Network is comprised of regional economic development nonprofits, including Team NEO, in Northeast Ohio. They are partly funded by JobsOhio. Each works with chambers of commerce and the cities and counties in its re-
gion to identify companies that are considering expanding and helping them win both local and state-level tax abatements, low-interests loans and even grants.
Gaining flexibility Englehart said JobsOhio can recommend state incentives, but the responsibility for approving, administering, and reporting those incentives rests with the state. Part of the reason for the creation of JobsOhio was to expand the ability to offer companies more robust financial incentives and, in the words of Gov. John Kasich, to “move at the speed of business” and not at a bureaucratic snail’s pace. “A good part of JobsOhio is that it’s got a lot more flexibility and it isn’t governed by state administrative rules,” said David Robinson, of the Montrose Group, a Columbus economic development consultancy. “A lot of times that would make state financing not very appealing,” he said.
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Akron: Outside investors receive mixed welcome continued from PAGE 1
and HealthSpan — a non-religious auxiliary of the state’s largest health system, the Cincinnati-based Catholic Health Partners — all have staked claims in the Akron area, the battle for Akron could soon turn into an all-out war. Just last week, the Clinic, the region’s largest health system, said it planned to buy a minority stake in Akron General. HealthSpan last year acquired a 30% stake in Summa for $250 million. Moreover, UH has quietly gobbled up Akron-area physicians practices — much to Akron General’s dismay — and recently invested $4 million to transform 35,000-square-feet of office space in the Akron suburb of Fairlawn into a new health center expected to open later this year. “Everything’s different,� Akron General CEO Thomas “Tim� Stover said. “The market has changed markedly in last 18 months.
A lesson from LeBron Officials at Akron General and Summa stress that they’ve retained local autonomy with their deals, and that the cash infusions from their respective partners only will increase the quality of care they provide — not outsource it to Cleveland or Cincinnati. Akron General nearly was acquired by Community Health Systems, a Tennessee-based for-profit health care giant, but the local autonomy Akron General desired wasn’t an option under a CHS deal. While it’s possible the Clinic’s stake in Akron General could increase over time, executives from both systems stressed that the Clinic would not upend Akron General’s culture and remake it in its own image, as it did with its community hospital in Medina. “There is a lot of emotion, a lot of local pride in what not-for-profit,
community-based organizations have built,� said Ann Huston, the Clinic’s chief strategy officer. “What you don’t want to do is usurp that or disturb that in any way. That’s very much part of how we structured this.� Still, observers suggest a minority investment may have been the only way a deal may have worked, or at least been accepted by the community at large. The Clinic’s minority investment “sends a message to the Akron community about being partners, not corporate takeover types,� according to Allan Baumgarten, a Minnesota-based health care consultant who studies Ohio’s health care industry. For the most part, Akronites don’t like living in the shadow of larger metropolitan areas or their major institutions. Take Akron’s own LeBron James, who would be quick to correct anyone who pegged him as having hailed from Cleveland instead of the Rubber City. Also, many of Akron’s civic leaders bristled at the “Cleveland Plus� marketing campaign launched in 2007 geared at drumming up economic development in Northeast Ohio. Summa CEO Thomas Strauss agreed there are a lot of sensitivities to bringing in an outside partner. However, he defended Summa’s HealthSpan deal, which was finalized last September, because the two systems are in sync with their “mission, values, cultures and belief of where health care is going.� He said Summa could have pressed on as is without HealthSpan’s $250 million investment, but the health system would have lacked the firepower it needed to be “really transformational.�
Clinic-UH rivalry presses on Strauss witnessed first hand the intense rivalry between the Clinic and UH. Before joining Summa,
Strauss worked for a decade for Meridia — a four hospital system ultimately acquired by the Clinic. UH made a strong play for Meridia, but the Clinic ultimately secured the deal. Strauss said he wasn’t concerned about the Clinic’s looming investment in his system’s chief rival. He said he believes Summa’s focus on population health will set his system apart from the Clinic. “We believe we’re further along that path and are prepared to compete,� Strauss said. “We wish them the best and believe we will be fine in that new market.� The Clinic’s investment in Akron General could be seen by some as a defensive move to temper UH’s growing influence in Summit County. Akron General’s CEO said UH’s aggressive pursuit of physicians who had been loyal to Akron General has had an impact, though UH claims most of those physicians asked UH to bring them on board. Also, UH and Summa have begun to cozy up — a relationship Stover expects will deepen sooner rather than later. Last year, Summa, UH, Catholic
Health Partners and Columbus’ Mount Carmel Health System teamed up to form Health Innovations Ohio, a statewide alliance designed to share best practices among the four organizations. “There is going to be continued opportunity for us to collaborate further,� said Paul Tait, UH’s chief strategic planning officer, about the health system’s relationship with Summa. “I don’t have any specific examples to give you, and I can’t totally predict the future, but I think there will be more areas continue to collaborate.� Over the last year, UH no doubt has been the region’s most aggressive health system. It rolled both EMH Healthcare in Elyria and Parma Community General into its enterprise and is in discussions to do the same with Robinson Memorial in Portage County. As for the Akron area, the health system now employs 160 physicians in Summit County. “Our philosophy is that most people want access to high quality health care close to home, and they should be able to do that for 90% of their health care needs,� Tait said.
Then there’s Switzerland Big moves by three of the state’s largest health systems has created an interesting wrinkle for Akron Children’s Hospital — the Switzerland of sorts in the city’s evolving health care market, as it operates neonatal intensive care units at both Summa and Akron General’s main hospitals. “There’s no doubt more of a move by the Cleveland systems, in general, to come south,� said Shawn Lyden, Akron General’s executive vice president. “The market’s behaving as one market. It really is.� That said, the children’s hospital isn’t terribly concerned its partners’ recent deals could unravel their relationships. For one, Catholic Health Partners isn’t a major player in pediatrics, and Akron Children’s already has ties with that enterprise, considering it operates the neonatal intensive care unit at CHP’s St. Elizabeth Health Center in Youngstown. “We like to see local control maintained,� Lyden said. “It’s also a plus that Summa and General, at least on paper, will continue to have substantial say in their organizations.� „
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PUBLISHER:
John Campanelli (jcampanelli@crain.com) EDITOR:
Elizabeth McIntyre (emcintyre@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Voting right Now is perhaps the most appropriate time — exactly halfway between the tributes of Memorial Day and the celebrations of Independence Day — to pay attention to the core reason our founders broke free and our soldiers tore into battle. The franchise. Like the Constitution itself, the right to vote in America has been changing, growing and evolving. As it has, the pool of voters — and freedom itself — has grown to include non-property owners, nonwhites, women, naturalized citizens and adults over 18 years old. Along the way, other hurdles were eliminated: poll taxes, literacy tests and restrictive registration tactics. Aside from the occasional step back, the momentum of the franchise has always marched forward. The result: More of our fellow citizens exercising their rights and having their voices heard. We believe Ohio has made a couple of those steps backward recently. One was corrected last week when Federal Judge Peter C. Economus ordered Secretary of State Jon Husted to restore early, inperson voting the weekend before Election Day. Earlier this year, in an attempt to bring uniform voting hours to all Ohio counties, Husted eliminated Sunday voting hours for 2014’s general election. The move was seen by many Democrats and African-American ministers as a take down of popular Sunday “Souls to the Polls” voting efforts. Uniform, in-person early voting hours across the state is a worthy goal, but it shouldn’t come with a cutback on voting access. As we applaud Judge Economus’ ruling, we also call on the Legislature to re-examine another reduction of voting access passed earlier this year. Signed by the governor in February, Senate Bill 238 eliminated a week on the front end of early voting. This is the so-called “golden week,” which allows citizens to register to vote and cast a ballot on the same visit to the BOE. For many new voters with transportation and financial problems, a single visit to the board was a blessing. Voter fraud is always a concern and safeguards against it must not be relaxed, but our state and our citizens are already doing an excellent job of keeping it extraordinarily rare (prosecutors investigated just 270 cases of voter fraud in Ohio in 2012 out of 5.6 million votes cast). Yes, voting is already easy in Ohio, some would say easy enough, with early voting, no-excuse absentee voting and absentee applications mailed to all registered voters. We are proud of that. But we also realize that Sundays, evenings and the “golden week” offer some people the easiest and perhaps only practical time to visit the polls. And we also do not want to march backward.
FROM THE PUBLISHER
Smart to support Gay Games When the Gay Games last took place pace of preparation is picking up: 500 on American soil, in Chicago in 2006, athletes a week are signing up (about things were a little different. 8,000 are expected to compete) and Only one state, liberal Massachusetts, more than 80 percent of volunteer spots was letting gay couples get are filled. married. Still, there’s plenty of time JOHN Less than two years earlier, for controversy. Except Nobbe CAMPANELLI in November of 2004, voters in is not expecting any. One of 11 states voted on anti-gaythe big reasons why? Local marriage ballot measures. All business involvement. 11 passed, with an average of The long list of sponsors for almost 70 percent of voter the Games includes plenty of support (the spread was 62-38 companies that are courting in Ohio). LGBT consumers: hotels, airKraft, Harris Bank and other lines, banks, financial adviscompanies sponsoring the ers. But what has pleasantly 2006 Gay Games were facing surprised Nobbe is the supboycotts from religious port from Cleveland compagroups. nies that may not have a short answer to The eight years since seem like 80 in “what’s in it for us?” These include the terms of a public opinion shift. likes of Eaton, Forest City Enterprises, Earlier this month, Wisconsin became Sherwin-Williams, Lubrizol and Parker the 20th state to allow gay marriage. SupHannifin. port for marriage equality in Ohio has Some companies have adopted spenow risen to 50 percent, according to cific events. Others — including Key polling from Quinnipiac University. Bank, E&Y, PNC, Wells Fargo, the CleveAnd boycotts of this summer’s Gay land Clinic and Walmart — are sending Games 9 in Cleveland? Aside from a few teams of athletes or groups of voluncab drivers upset with Gay Games ads on teers. their vehicles, there has been “not a “Sports and culture are ways that folks thing,” says Thomas Nobbe, the event’s can comfortably show their support of executive director. the LGBT community,” says Nobbe. The Gay Games run Aug. 9-16, and the “We’re not asking them to take a politi-
cal position.” Strong local business support shouldn’t surprise anyone. First off, this is about civic pride. If it’s happening here, we support it. Second, it’s smart business, at least if you want to attract and retain talent. “I think more and more employees are feeling comfortable being out at work,” says Nobbe. “Companies are aware that the larger they are, the more LGBT employees they have and that they need to attract and retain. This is a good sign from management that they are supportive of the community.” Then there’s the generational difference. Younger workers are huge supporters of the LGBT community (almost 3 out of 4 people under 40 support marriage equality). Nobbe says he knows of one instance — and he refuses to name names — of a local CEO who might have been a bit hesitant about a Gay Game sponsorship, at least until he got home and talked to his family. The kids — either teens or young adults, Nobbe’s not sure exactly — listened to the concerns and ended the conversation with one sentence. “You guys should be doing something.”
TALK ON THE WEB Re: JobsOhio case dismissed by Ohio Supreme Court ■ It’s key to note what Justice Paul Pfeiffer wrote in his dissent: “Today, this court ensures that no court will ever address the question of the constitutionality of the JobsOhio legislation. “Neither the state, nor its counsel, nor the majority opinion has been able to conjure a realistic example of a person or entity that would have the requisite standing and inclination to bring a claim. Ohioans will never know whether their government is violating the constitution. Apparently, they do not deserve to know.” As usual, Justice Pfeiffer again shows
he is the only justice on the court with any brains or integrity. — Tom Lawyer ■ This is another example of politics winning over and destroying what had been a great program. Just because elected officials from one party started it, and now elected officials from another party want to control it, is not a good reason to change what was a model that other states were looking at as a great vehicle to help small businesses throughout the state. Along with the changes in the clean energy rules, Ohio is moving in the wrong direction. — Neil Dick
Re: Cleveland’s competition for GOP convention ■ I hope that Cleveland emerges victorious in this effort. For all of the media coverage and the dog-and-pony shows that have been part of this process, you would like to believe that Cleveland is the front runner. I don’t see Kansas City getting this, but I can see Denver and Dallas being selected because of their larger metropolitan areas. — Melvin Gaines ■ I cannot speak to Denver, but Dallas and Kansas City are spread out with nonexistent infrastructure. — Don Saxton
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Minority event aimed at job growth Event shines light on potential job openings in energy industry
DAN SHINGLER
By DAN SHINGLER dshingler@crain.com
About 200 people huddled at the Pro Football of Fame in Canton last Tuesday, June 10, and they were ready for some talk about jobs — specifically, jobs for minorities and women in the state and nation’s gushing oil and gas industry. The event was “Energize Ohio,� and it’s one of in a series of such meetings being held in cities across the United States by the Washington, D.C.-based American Association of Blacks in Energy and California’s Hispanics in Energy. The two national groups are working together to spur awareness of and discussions about opportunities for minorities in the energy sector. Organizers will regroup for the next meeting June 26 in Detroit, but in Ohio, they chose the state’s self-proclaimed Utica Capital of Canton as their venue. Chief among the messages: There are open jobs in the oil and gas sector available to minorities and minority contractors, and more are coming. “This industry is full and ripe with opportunity and so it’s really, really important to make sure that everybody hears what’s going on and, if they choose to join this they have the opportunity to do so,� said Paula Jackson, president of the 37-year-old American Association of Blacks in Energy, which has three chapters in Ohio. “We want to work with all of you to make big things happen,� she added. A lineup of speakers from industry groups such as the American Petroleum Institute and the Ohio Oil and Gas Energy Education Program joined human resource representatives from companies such as Marathon Petroleum Co. and TransCanada Corp. to talk about the industry’s projected growth, its job re-
“This industry is full and ripe with opportunity and so it’s really, really important to make sure that everybody hears what’s going on...� – Paula Jackson president, American Association of Blacks in Energy quirements and its expected labor needs. They were touting, among other things, a projected 408,000 new jobs for minorities by 2030 in the oil and gas and petrochemical industries, according to a report prepared by the consulting group HIS for the American Petroleum Institute in March. At the same time, most of the speakers also preached realism. Jobs in the industry typically pay well and can be secure, they told audience members, but some of them also require special training or a willingness to spend large amounts of time away from home, or outdoors in harsh environments. Others are
TALK ON THE WEB Re: NE Ohio’s neargrowth story ■The latest Bureau of the Census revision estimates that in the period July 2012 to July 2013, the Cleveland MSA declined from 2,064,739 to 2,064,725. That’s right, FOURTEEN people. Based on trend analysis, hard as it may be to believe, this year the Cleveland region almost certainly will show population growth, and every sign points to a continuation of the trend. I don’t want to jinx it, but we need to recognize that the bad old days are over. — Robert Salmon
Re: Power outages ■Crain’s June 9 story, “Power outages put drain on auto plants,� is ridiculously uninformed. Large industrial end-users buy power on “interruptible� rates that allow the seller to cut supply with sufficient notice. This is often done on high-demand days with as little as a couple hours warning. For this possible inconvenience, the rate is lower. This has been part of power plan-
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
ning for decades. And if a power outage is completely unplanned, a lot of companies have their own on site generation. Additionally, if there are real damages, you can sue. — luvfreedom
Re: Federal energy mandates ■The Energy & Commerce Committee in the House of Representatives concluded that these new regulations will cost more than 500,000 jobs and force coal-powered plants — where the majority of energy comes from in Ohio and the most abundant and efficient form — to close. It’s already happening here in Ohio, where electricity costs are set to increase by 20% to 40% as a result of the EPA’s new mandates. We’ve already taken great steps to lower carbon emissions and have made plenty of progress over the years. This is just another form of antijobs, anti-states rights and overreach by the federal government. I’d also say the Crain’s editorial board, based on the June 9 editorial “Clean it up,� is clearly anti-Ohio. — RealBusiness
even close to home, such as at Marathon’s Canton refinery that many local residents don’t even realize exists, said Lloyd Hudson, Marathon’s Canton human resources manager. The event’s goal was to draw an audience, provoke thought and start conversations, particularly in minority communities. Toward that end, it appeared to be a success. Organizers said they were hoping for about 150 people, but they had more than 180 pre-register and more showed up at the door, some with resumes in hand, even though the event was not a job fair. A city of Canton employee said she attended the event because she was interested in seeing if the money might be better in the private sector. Government jobs often don’t pay as well as those in the private sector, and lately aren’t any more secure either, she noted. She wasn’t the only person from the city at the event. Canton Mayor Tom Healey spoke briefly, as did Canton Ward 2 Councilman Tom Ward. “We talk a lot about keeping young people in our community and keeping them here at home,� Ward said. “This oil and gas industry is a great way for our young people to stay engaged.� Jackson seemed pleased with the event. The oil and gas industry is not well known to minorities and sometimes does not do enough to make itself known to them, she said. But that’s improving, she said, as evidenced by the American Petroleum Institute working with her group on the ongoing events. Minorities need to be aware of the jobs, she said, because employers have become aware that they need minority workers. “If you choose not to diversify your work force, you’re going to have a problem, because there is no other work force,� Jackson said. „
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GOING PLACES JOB CHANGES BIOTECHNOLOGY NDI MEDICAL: Bob Rogers to director, Regulatory Affairs & Quality Systems
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DISTRIBUTION MFS SUPPLY: Nick Catanese, Tom Jamieson, Andrew Campbell and Bill Nisenboum to regional sales managers; Carlo Melaragno to national program manager; Mike Madsen to project manager; John Kane and Taylor Branisel to regional account managers.
HEALTH CARE METROHEALTH SYSTEM: Debbie Bonzak to director, protective services; Donna Graham to senior director, revenue cycle; Jaclyn Woolnough to director, revenue integrity.
LANDSCAPE PATTIE GROUP INC.: Mike Kramer to project director; Nick Nemeth to landscape designer; Larry Dickman, Tony Layton and Steve Lamb to design/build foremen; Tim Smith to irrigation foreman; Shannon Rowe to contract support specialist; Jessica Lamb to marketing coordinator.
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TECHNOLOGY ENTRYPOINT CONSULTING LLC: Mark Tylicki to engagement manager, Global Trade Management Practice.
BOARDS CLEVELAND INTELLECTUAL PROPERTY LAW ASSOCIATION: Patricia Motta to past president; Chris Hunter (Parker Hannifin Corp.) to president; Tara Kastelic to president-elect; Richard Wesorick to vice president; Bryan Jaketic to secretary; Luis Carrion to treasurer. MAY DUGAN CENTER: Patrick Reynolds (Forest City Enterprises) to president; Bob Rotatori to vice president; Kari Colon Zimmermann to secretary;
Rick Weigle to treasurer. METROHEALTH FOUNDATION: David C. Jacobs (Oswald Cos.) to chair; Brenda K. Kirk to chair-elect; Akram Boutros, M.D., to president and CEO; William L. Aamoth, Dwight M. Allgood, Franziska H. Dacek, Robert A. DeAngelis, Ann C. Lutz and Thomas E. Collins Jr. to vice chairs; Kate Brown to chief administrative officer and secretary. UCP OF GREATER CLEVELAND: Sean Wenger (Johnson Controls) to chair; Ethan Hendrickx to vice chair; Stacey Johnson to secretary; Jeffrey Minnick to treasurer.
AWARDS TURF & ORNAMENTAL COMMUNICATORS ASSOCIATION: Cindy Code (Project EverGreen), Pat Jones (Golf Course Management) and Jerry Roche named to the Hall of Fame.
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Winter still impacting ore trade By DAN SHINGLER ssuttell@crain.com
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Most folks know that, in Cleveland, winter lasts a long time. But through May? Apparently so, at least in terms of its impact on shipping. Even though Lake Erie and the rest of the Great Lakes were ice-free in May, the lingering effects of an icy winter still were affecting shipping. In Cleveland, 6.4 million tons of iron ore were delivered in May — ore that was needed quickly to resupply stockpiles at ArcelorMittal’s Cleveland steel mill. Had there been less ice on the lakes in the previous months, however, that total would have been higher. “The total would have been
about 600,000 tons more, but three, 1,000-foot-long U.S.-flag lakers were out of service for a combined 65 days in May to repair damage suffered in the heavy ice that covered the Lakes in March and April,” according to a report from the Cleveland-based Lake Carriers Association. That followed a winter when ore shipments were cut in half, and were brought to a standstill during some particularly tough stretches of weather, the association previously reported. For now at least, fairly high water levels are enabling ships to come into port, and up the Cuyahoga River, with larger loads. But the river still needs dredging, and ships still are not carrying as much ore as they used to.
“Rising water levels did allow for bigger loads than a year ago, but dredging remains very much needed,” the association reported. “The largest iron ore cargo to move in May totaled 67,293 tons, an increase of 2,800 tons compared to a year ago,” according to the group. “However, in May of 1997, a time when water levels were approaching near record highs and allowing vessels to load to almost their full draft, the top ore cargo totaled 69,961 tons, and before the season was out, some loads would top 72,000 tons.” Year-to-date, the Great Lakes’ ore trade stands at 12.7 million tons, a decrease of 26% from the like period a year ago, due to winter ice, according to the association.
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E DUCATION PREP & PAROCHIAL THE HOUSE THAT HOPE BUILT Organization provides students from troubled homes with a safe and supportive environment By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
F
or the past 25 years, Boys Hope Girls Hope of Northeastern Ohio quietly has been making a difference in young people’s lives. The small nonprofit gives at-risk youth access to a high-quality education and to a safe home on a picturesque campus on the site of an old family estate in Garfield Heights. Two current scholars — a young man entering his junior year at St. Ignatius High School and a young woman who will also be a junior at St. Joseph Academy — spoke to Crain’s anonymously earlier this month. Both had their own reasons for attending, but said the program had helped them greatly. The young man was accepted to Ignatius before he joined Boys Hope Girls Hope, but he found himself struggling academically with little help at home, as his parents lacked the experience he needed. He said he wasn’t sure about the program at first, but he’s since learned new ways to study and has seen his grades improve. The staff wants students to do well, which motivates him. “There’s a lot of love in this place,” he said. The young woman said the program has helped take responsibility off her shoulders and shown her that reaching out for help isn’t a bad thing. She gets to be more of a kid at Boys Hope Girls Hope, she said, and she can focus on her schoolwork more than she could at home. She said she has been given a chance to start over. The national Boys Hope Girls Hope program was started in the 1970s, with the first local home opening in Akron in 1989. By the 2005-2006 school year, the current campus in Garfield Heights housed both young men and young women in the program, whom the program calls scholars. Today, it’s home to 14 young adults in middle school and high school. It can house 18 to 20 young adults, depending on staffing. The scholars, all of whom have high academic potential and come from low-income households, are referred to the program by teachers, counselors or others. They also demonstrate some sort of greater need that makes the child and the child’s guardian think an out-of-home place-
MCKINLEY WILEY
Left: Tim Grady is heading up a lot of changes as the executive director of Boys Hope Girls Hope of Northeastern Ohio. The program recently started a two-year endowment campaign and will be bringing its residential and community-based programs onto one site in the fall. The Garfield Heights campus serves as home to the junior high and high school students in the Boys Hope Girls Hope residential program. There are two boys homes and one girls home on site. The campus also includes a prayer garden, a community learning center for structured study time and a wellness room for counseling and art therapy.
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Maintaining enrollment levels means trying new things By DANIEL J. MCGRAW clbfreelancer@crain.com
When Richard Osborne, president of Villa Angela-St. Joseph High School in Cleveland, talks about enrollment at the school, he likes to point out two numbers: 37 and 130.
The smaller number would be the number of students who recently graduated in the class of 2014, while the larger number will be the number of incoming freshman this fall. The numbers represent a 250% increase in the school’s class size in
five years, defying the trends of population loss and economic distress of the school’s primary drawing area on the city’s east side and inner-ring suburbs, like Euclid. And for Osborne, the reasons behind the upward trend in enrollment at VASJ also are surprising in
some people’s eyes. “About five years ago, we did something that some people might think is counterintuitive,” Osborne said. “The school decided to go in the direction of being far more selective.” What the school did was change
from accepting almost all the applied, Osborne said, to being more selective and rejecting about onethird of the applicants in recent years. “We have found that even though we are turning down more See ATTENDANCE Page 15
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Schools help students get down to business By CHRISSY KADLECK clbfreelancer@crain.com
Best known as the “granola man” around the University School campus, eighth-grader William Willoughby caught the entrepreneurial bug hawking his Hola Granola mix at school events and farmers markets. Last month, Willoughby sold out of hundreds of dollars of his secretingredient granola in less than three hours manning a booth through the Youth Entrepreneur Market, a new program at Shaker Square & Crocker Park North Union Farmers Markets. The program is funded by The Burton D. Morgan Foundation and The Veale Foundation, and it’s designed for youngsters with startups. “He had samples and he was really good at approaching the customer and pitching them about the quality of ingredients and why they should buy from him,” said Greg Malkin, founder and director of University School’s Entrepreneurship Institute. Willoughby was one of more than 50 boys who learned the basics of running a business through the University School Entrepreneur Club.
“In talking to his parents, it has been a transformational experience for their son,” Malkin said. “They have seen the light bulb click on for him. He is expanding his product line to granola bars and he has been spectacularly successful.” Willoughby is not alone. Hundreds of high school and middle school students at the region’s prep and parochial schools are embracing entrepreneurial programming and education. They are mastering concepts of finance, economics and marketing. They are developing business plans for real, viable businesses they can start for less than $1,000. In some cases, they are even managing successful businesses well before they earn their high school diploma. It’s all a part of a growing trend of teaching entrepreneurship — and all its applicable life skills such as ownership, self-confidence and overcoming failure — to younger students and allowing them to immerse themselves in experiential programs that take them out of the classroom and away from traditional schooling. Take Hawken School, which this year conducted its three-credit se-
CONTRIBUTED PHOTO
Members of Magnificat High School’s business club attend a Veale event at Ideastream. mester program in entrepreneurship. The rigorous curriculum spans four months and involves students working in groups to solve keep-youup-at-night problems for real entrepreneurs and create their own business models that they present Shark
Tank-style to a panel of investors. “The students cover a huge amount of terrain in real knowledge and develop soft and hard skills that are critical,” said Doris Korda, associate head of school and director of entrepreneurial studies at Hawken School. Korda has gained national attention for developing her curriculum and will be teaching an educators workshop this summer. “Hawken is a very progressive school and we’re focused on doing school better,” she said. “But in many cases we’re still approaching high school education the same way we did in the 1940 and 1950s when it was a completely different world. The real world needs skills like creativity and problem solving skills, communication skills and the ability to face complete uncertainty and
constant change.”
Getting an early start Nine private Greater Cleveland schools participate in the Veale Youth Entrepreneurship Forum, an initiative that began in 2012 with a mission to provide exceptional education and real-world experiences in entrepreneurship, said Cynthia L. Bailie, executive director of The Veale Foundation. “We fulfill that mission by running an annual business plan competition among the nine schools, supporting a Young Entrepreneur Market where student-run businesses can gain experience selling their products directly to customers, supporting the expansion of entrepreneurship classes and
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READ MORE ONLINE... At Gilmour Academy, students interested in science have the opportunity to work with biomedical researchers from the Cleveland Clinic. At University School, students spend summers shadowing Northeast Ohio entrepreneurs. And at Saint Martin de Porres, an urban high school, students spend one day per week working at a major corporation. These are just a few examples of ways that private and parochial schools in Northeast Ohio offer opportunities for high school students to gain professional experiences before they graduate. Such programs are becoming increasingly common as schools seek to impart real-world skills to students, help them develop a competitive advantage when they’re applying to colleges and push them to gain experiences that could land a job. Find out more about these programs and read about the experiences of Gilmour Academy’s Cedric Hansen; University School’s Matthew Kaufman; and St. Martin de Porres High School’s John Frank Largent at www.crainscleveland.com/firsthand. clubs on Forum school campuses, introducing students to the robust entrepreneurial ecosystem in Northeast Ohio, and facilitating the sharing of knowledge among Forum members about what works in entrepreneurship education,” Bailie said in an email. During the 2013-2014 school year, nearly 1,000 students were engaged in some aspect of the forum program from the following participating schools: Beaumont High School, Benedictine High School, Gilmour Academy, Hathaway Brown School, Laurel School, Magnificat High School, Saint Ignatius High School, University School and Montessori High School at University Circle. “There is literally nothing like it in the world,” said Malkin, who was selected by the foundation to lead the forum. “You’ve got private schools coming together focused on entrepreneurship education and
teachers are coming together to share best practices.” The forum began with eight schools — Montessori High School was added the most recent school year — that had high interest in expanding entrepreneurship education for their students and who were current grantees of the foundation started by Tinkham Veale, II, a lifelong, serial entrepreneur. Each school receives an annual $10,000 grant. At University School, more than 50% of the high school is involved in some aspect of entrepreneurship studies and 15 percent of the student body “majors” in business. “We have a very robust program that starts in third grade,” Malkin said. “One of the things that we’ve seen is students who don’t have success in schools who are not A students, these entrepreneurial studies give them a reason to come
EDUCATION ands down, our education professionals are among the best in the business. H But that doesn’t quite cut it. The way we see it, it’s not enough that we’re top-notch experts in accounting – we need to be experts at what you do too. That’s why we make it our business to know your business, inside and out. Maloney + Novotny has extensive experience working with private schools providing audit, accounting, tax and consulting services. Call Jon Ruple for a complimentary private school benchmark analysis.
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See BUSINESS Page 18
BEAUMONT WOMEN EXCEL! Academic Excellence is the essence of a Beaumont education: 32 seniors received the President’s Award for Academic Excellence and 38 received the State of Ohio Honors diploma. College acceptances include Cornell University, New York University, Case Western Reserve University, Rochester Institute of Technology, Pennsylvania State University, Tulane University, and The Ohio State University.
A Catholic high school in the Ursuline tradition, educating women for life, leadership and service.
THE CLASS OF 2014 HAS BEEN OFFERED SCHOLARSHIPS AND AWARDS IN EXCESS OF $8.9 MILLION, AND WILL ATTEND 43 COLLEGES AND UNIVERSITIES NATIONALLY. These 97 graduates earned awards in SCIENCE State Science Day, Western Reserve Science Competition, NE Ohio Science and Engineering Fair, BEST Medicine Engineering Fair… NATIONAL Robotics League Competition… ATHLETICS 30 Senior Scholar Athletes, Division II State Volleyball Final Four, Division II 8th Place State Golf Tournament, Division II District Champs — Cross Country and Track & Field… ART Scholastic Art Competitions: 6 Gold Keys, and 3 Silver Keys… LANGUAGE NATIONAL winner American Association of Teachers of French Essay Contest… MUSIC Three WCLV NE Ohio Music All Stars… SERVICE collectively, the Class of 2014 provided over 11,350 hours of service to the greater Cleveland community and through mission trips to El Salvador. 3301 North Park Blvd., Cleveland Heights, OH 44118 | 216.321.2954 | BeaumontSchool.org
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Innovative designs becoming school norm Goodbye rows of desks, hello shared open spaces; adaptable configurations can accommodate many needs By JUDY STRINGER clbfreelancer@crain.com
The rallying cry of contemporary school design could be: “If it’s too open, you’re too old.” Compact, teacher-centered classrooms are being swapped for open and informal configurations that can more readily adjust to small group activities, project work and presentations. Narrow, typically crowded, hallways are becoming more than passages from one room to another. They are spacious corridors with inviting window seats and other places where students can gather between classes or group work can spill out from adjacent classrooms. Stuffy libraries, once full of books and reserved for quiet reading and solitary research, are emerging as more streamlined and relaxed hangouts with reading nooks, comfy chairs and areas designed to facilitate a variety of formal and informal learning activities — quiet or otherwise. Ho-hum cafeterias are transi-
School. Hawken School is poised to demolish 26,000 square feet of an academic building at its Gates Mills campus to make way for a $24.5 million, 50,000-square-foot addition that will bring larger classrooms, more common areas and new specialty spaces, such as a fabrication laboratory, said head of school D. Scott Looney. The private school plans to break ground in early 2015 — Hawken’s centennial year — with completion planned for fall 2016. St. Martin de Porres, a Jesuit high school, has signed off on design plans for the construction of a 65,000-square-foot facility across from the 1912 elementary school building it currently leases in Cleveland. President Richard Clark said the facility will incorporate a former furniture store on the corner of East 62nd Street and St. Clair Avenue and include two new three-story wings in both directions with the upper floors housing “learning communities.” Rather than traditional same-
tioning into chic cafés. Replacing rows of gray rectangular tables are an assortment of colorful booths, high tops and media perches. Formerly disjointed educational disciplines are being moved into shared spaces. Sure, computer labs and wireless access anywhere are critical facility components, local educators said, but 21st century education often requires reimaging learning spaces as well. And, reimaging they are.
Everybody’s doing it Beaumont School, an all-girls Catholic high school, is adding a 25,000-square-foot wing to its 50year-old Cleveland Heights campus. It will house eight roomy science, technology, engineering and math (STEM) classrooms and is part of a $9.5-million renovation that includes new administrative and guidance offices and a spacious student commons. The addition is expected to come on line in January 2015, according to Sister Gretchen Rodenfels, president of Beaumont
Forever green and white. No matter what colors come next. Congratulations to the Laurel School Class of 2014.
sized classrooms along a corridor, the communities will consist of learning spaces of different sizes and configurations and be centered around a commons. Teams of fourto-six instructors will share the spaces based on the lessons and activities they have planned for the day. Students at University School, Laurel School and Magnificat High School have moved into their newly designed digs. University School opened a three-story science and academic wing at its Hunting Valley upper school in August 2012. The wing accommodates 25 classrooms on the upper two floors and eight state-of-the-art classroom-laboratory suites and a special projects laboratory on the first floor. As part of a $47-million capital project, the school also gutted some existing classroom space in Hunting Valley to create a wide open manual art and design center, which opened in 2013. Magnificat’s all-girl student body got its first taste of the school’s “surrounded learning” initiative when they returned from summer break in 2012 with transformation of the school’s former library into the Humility of Mary Center. The area now is much more open and fluid, and it accommodates a range of electronic devices and as many as 20 different learning modalities ranging from independent study to collaborative technologies, said Marilyn Arundel, dean of faculty and academics. One year later, a sleek new commons area took the place of its traditional cafeteria. Late last year, Laurel, a private Shaker Heights school for girls, completed its $3.5-million, 27,000square-foot third-floor renovation. The area includes a “big, open common space with window seats and comfortable work areas,” said marketing director Kate Floyd. “The girls have a space to study during their free periods or meet for group work outside of the classrooms.”
Changing with the times What these new spaces have in
common is an acknowledgement that modern education requires more than one-size-fits-all-classroom approach where teachers “pontificate in front of rows of students sitting attentively at their desks,” Looney said. Research has shown that different people learn in different ways; some learn by doing, some learn by sharing with others, some learn through research and discussion in small groups or teams. Yet, buildings that were designed 50 years ago or more typically do not have enough space, or the right spaces in the right places, for all the different configurations instructors need to tap into as many learning modalities as possible. “Put 16 adult-sized bodies in a 450-square-foot space and ask a teacher to employ as many different teaching modalities as possible and they will just roll their eyes at you,” Looney said. “There is just not enough space.” “It’s all about having the right spaces for the right learning activities, rather than forcing a learning activity into a space that is not optimal,” said James Seaman, principal at Fielding Nair International, a Detroit-based architectural firm. Seaman helped design Magnificat’s new space and St. Martin de Porres’ planned construction. The new designs, he said, also reflect the growing acceptance that learning does not stop at the classroom doors, nor should it be reserved to only one discipline at a time. Cafeterias full of cushioned seats may make lunch more comfortable, but the real endgame is offering a seamless learning environment no matter where students are on campus. Meanwhile, interdisciplinary STEM wings and “fab labs” are meant to inspire creativity by helping students make connections from one subject matter to another. “These are things we have been doing in high education for some time,” said Cleveland-based architect Jill Akins, who worked closely with Beaumont. “Now we are employing the same ideas in high school environments.”
Collectively, over 80% of the Class of 2014 was offered more than $7 million in scholarships to many of these fine colleges and universities: The University of Akron School of Engineering • Allegheny College • American University • Binghamton University • Boston College • Boston University (2) • Calvin College • Case Western Reserve University (3) • Colgate University • Dartmouth College • University of Denver (2) • DePaul University • Duke University School of Engineering • Duquesne University (2) • Emory University • Fordham University • Franklin and Marshall College • Georgetown University • The George Washington University (4) • Grinnell College • Harvard University • University of Houston • Indiana University • Ithaca College • John Carroll University • Kenyon College • Lehigh University • Marquette University • University of Michigan, Ross School of Business • Michigan State University (2) • College of Mount St. Joseph • Northeastern University • University of Notre Dame • The Ohio State University (2) • The Ohio State University Scholars Program • Ohio University • Ohio University School of Engineering • Pennsylvania State University • University of Pittsburgh • Skidmore College (2) • University of Southern California • Southern Methodist University • University of St. Andrews, Scotland (2) • Syracuse University (2) • Tulane University • Vanderbilt University • University of Vermont • Washington University in St. Louis • Wellesley College • Wesleyan University (2) • The College of Wooster • Yale University • Youngstown State University
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Attendance: Widening the net can help to fill desks continued from PAGE 11
now, we are growing faster,” Osborne said. The reason, he said, is that higher-performing students have opened the possibility of more rigorous offerings, which has led to more applications. Total enrollment for the school has increased from 272 in the 2011-12 school year, to an expected 420 this year. A check of many private high schools in Northeast Ohio indicate that while VASJ’s dramatic enrollment growth is the exception, other area schools aren’t necessarily declining in enrollment. In fact, student numbers have remained flat in recent years, which is similar to population levels in the region. And though St. Peter Chanel High School in Bedford closed last year, and Regina High School in South Euclid closed in 2010, most think the private schools in the region have adjusted and no future closings are imminent. “How we look at it is that the water level in the bathtub is the same, but the drain at the bottom is still open,” said Joe Waler, principal of Notre Dame-Cathedral Latin School in Chardon. “What we are finding is not unlike what most businesses deal with. We have a product we offer, and we have to get the word out to parents and their children that this product has great value.” The co-ed NDCL’s enrollment has been about 700 for the past five years, Waler said.
tween the private schools in the Cleveland area, that is always part of the equation. “Demographics are challenging in Cleveland right now,” said Heather Daly, director of admissions for Hawken School in Gates Mills. “Anyone in a market like Cleveland can’t take anything for granted.” Hawken’s pre-K through grade 12 enrollment has remained steady at about 950 students in recent years.
Expanding their footprint One of the ways the schools are able to keep their enrollment num-
bers steady is to expand their geographic footprints in some ways. Historically, private schools in Northeast Ohio — especially the Catholic schools — have mostly drawn from their immediate area. Now, most of the schools are pulling students from the entire region. Magnificat High School in Rocky River, an all-girls school with a fairly steady enrollment of about 800, now attracts its students from more than 50 different cities in five counties. “We are definitely a regional school at this point,” said Heather Schmuhl, director of admission at Magnificat.
Some schools also are delving into the foreign student market on a limited basis: Padua Franciscan High School in Parma has about 30 foreign students from seven different countries — most coming from China and Japan. “We do not aggressively market to these (foreign) students, but over time the word spreads and we do see it as a positive for having such a diverse student body,” said Jerry Jindra, vice president of institutional advancement at Padua. For VASJ’s Osborne, the focus has been rather simple: quality of education. Since the all-boys (St. Joseph High School) and all-girls (Villa Angela Academy) schools
merged in 1990, the student body is 50-50 male and female and about 50% minority, he said. “We still see the Collinwood and Euclid area as are main drawing area, and we like to be an anchor point for the neighborhood,” Osborne said. “But we’ve also learned to be an anchor point for the community on education,” he said. “Parents will always have a commitment to getting their kids a good education, and their economic circumstances don’t change that. And we’ve seen that us having a commitment to giving their kids a good education grows our numbers. It is pretty simple.”
DISCOVER
the WRA Difference
‘Demographics are challenging’ According to the National Center for Education Statistics, private school enrollment nationally has been relatively flat as well. From 1995 to 2012, the percentage of students enrolled in private schools, kindergarten through 12th grade, has declined from 12% to 10%. Catholic schools have taken a bigger hit, declining in total enrollment from 2.7 to 2.1 million during the same time period. One of the reasons for that decline is that the areas of the largest population decline in the country during the past decade have been in the Midwest, which also was the area of the country that was a Catholic school stronghold based on historic immigration patterns. According to the National Catholic Education Association, the number of Catholic elementary and high schools in the Great Lakes region declined from about 1,900 to 1,500 in the last 10 years, with a total decline in students of about 120,000 during that same time period. Dale McDonald, director of public policy and educational research for the National Catholic Educational Association, said the decline also is related to more licensed charter schools and public school systems offering full kindergarten and pre-K programs. “But as tuition goes up and population declines, the drop in the number of (Catholic) students and schools in the Great Lakes region is not surprising,” she said. Of course, the increase in tuition often is offset in the Cleveland area by many of the schools having a high percentage of students receiving some form of financial aid for tuition that generally runs in the $8,000$10,000 range annually for high schools. And, though the schools do not like to play up the competition be-
400
Students
70% 30%
Boarding Students
Day Students
7:1
Student to Teacher Ratio
54
Teaching Faculty
16.9
Average Teaching Experience
87%
Advanced Degrees
155
Academic Courses
20
Advanced Placement Courses
23
States
15
Countries
Western Reserve Academy is a co-ed boarding and day school for grades 9 -12 located in Hudson, Ohio. For more information go to
www.wra.net
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2014 GRADUATION SNAPSHOTS At right, a scene from the 2014 graduation ceremony at St. Joseph Academy. CONTRIBUTED PHOTO
Saint Ignatius High School NUMBER OF GRADUATES: 342 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 72.5% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $28.6 million (as of May 30) PLANS OF GRADUATES: 49% will attend a public school (including two military appointments to the United States Air Force Academy); 50%, private; 1%, other plans; 67%, in state; 33% out of state PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 99%
Saint Edward High School NUMBER OF GRADUATES: 192 DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More
than $9.6 million in merit scholarship money PLANS OF GRADUATES: The bulk will attend in-state, public schools; 42 will continue at a Catholic school; and a few will attend an out-ofstate, public school. Two were admitted to military academies with one attending the U.S. Military Academy at West Point. One will play junior hockey and one is enlisting in the U.S. Air Force. PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 98%
Lake Catholic High School NUMBER OF GRADUATES: 219 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 60% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $10 million
PLANS OF GRADUATES: 23 will attend community colleges; 69, private college; 125, public college; two, military PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 99%
Archbishop Hoban High School NUMBER OF GRADUATES: 199 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 70.4% of the class DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $20.2 million PLANS OF GRADUATES: Members of the class will be attending more than 50 different schools, both in state and out of state PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 99%
Magnificat High School NUMBER OF GRADUATES: 176 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 61% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $15 million PLANS OF GRADUATES: 86 will attend an in-state, public school; eight, out of state, public; 32, Catholic, out of state; 22, Catholic, in state; 12, in state, private; 10, out of state, private; five, two-year school; one, gap year. PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Padua Franciscan High School NUMBER OF GRADUATES:178 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 72% DOLLAR AMOUNT OF
SCHOLARSHIPS OFFERED: $13 million PLANS OF GRADUATES: 125 will attend a public school; 47, private; 150, in state; 23, out of state; one, military; three, not attending; two, undecided
Notre Dame-Cathedral Latin School NUMBER OF GRADUATES: 160 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 74% (self-reported) DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $15.5 million for four years of undergraduate studies (self-reported) PLANS OF GRADUATES: 96% will attend a four-year institution; 4%, a two-year institution; 47% will attend a four-year private institution; 53%, a four-year public institution; 22%, out of state; 78%, in state; 30%, Catholic
The Lake Ridge Academy community congratulates our graduating Class of 2014 and wishes them future success and happiness! FINAL COLLEGE CHOICES CLASS OF 2014 University of Akron Alderson-Broaddus College Baldwin Wallace University Bowling Green State University Brown University Butler University Bryn Mawr College Case Western Reserve University (2) Champlain University University of Chicago Creighton University DePaul University Drexel University (2) Haverford College – Salutatorian High Point University John Carroll University
Kenyon College Manhattan School of Music Miami University University of Michigan (2) Michigan State University Muhlenberg College NEOMED (6 year medical program) Oberlin College Ohio State University Ohio State University - Honors Ohio Wesleyan University Rochester Institute of Technology (2) Rhode Island School of Art and Design Savannah College of Art and Design Skidmore College Yale University – Valedictorian
The 37 Lake Ridge Academy graduates garnered over $3 million in college scholarships!
LakeRidgeAcademy.org
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college or university PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 99% (includes four-year and two-year colleges)
Saint VincentSaint Mary Catholic High School NUMBER OF GRADUATES: 171 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 74% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $19 million in scholarships and grants PLANS OF GRADUATES: In addition to college plans, one student is going into the U.S. Air Force; three students graduating in the special education track will advance to postgraduate studies; and two students will enter the work force full-time PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 97%
Cleveland Central Catholic High School NUMBER OF GRADUATES: 128 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 39 graduates offered scholarship assistance DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $2 million PLANS OF GRADUATES: 52% will attend a four-year college; 31%, two-year college; 6%, work; 4%, military; 2%, trade/technical school; 5%, undecided
Lutheran West NUMBER OF GRADUATES: 108 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 68% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $8.7 million PLANS OF GRADUATES: 56% will attend a public school; 42%, private; 71%, in state; 25%, out of state; 3%, military PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 96%
Saint Martin de Porres High School NUMBER OF GRADUATES: 93 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 29 DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $837,624 (Total potential four-year awards, $3.4 million)
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Benedictine High School NUMBER OF GRADUATES: 71 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 70% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $8.5 million PLANS OF GRADUATES: One graduate plans to attend West Point; 43.7% will attend a public college; 39.4%, private; 8.5%, two-year college; 1.4%, flight school; 1.4%, prep school; 5.6%, undecided
Beaumont School NUMBER OF GRADUATES: 97 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 80% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $8.9 million PLANS OF GRADUATES: 66% will attend an in-state college; 34%, out of state. PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Trinity High School NUMBER OF GRADUATES: 86 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 68% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $4.6 million PLANS OF GRADUATES: 27 plan to attend a private school; 58, public; 79, in state; six, out of state; one, military PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 99%
Saint Joseph Academy NUMBER OF GRADUATES: 145 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 77% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $14.7 million PLANS OF GRADUATES: 62% plan to attend a public school; 36%, private; 2%, military or work. PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 98%
Gilmour Academy NUMBER OF GRADUATES: 122 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 68% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $13.8 million PLANS OF GRADUATES: 43% will attend an in-state school; 57%, out of state; less than 1%, military; 41%, public; 59% private PERCENTAGE OF GRADUATING
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CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Hawken School NUMBER OF GRADUATES: 107 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 58% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED:$5.8 million PLANS OF GRADUATES: Graduates will attend public and private school, as well as the military, including the U.S. Military Academy. PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
University School NUMBER OF GRADUATES: 95 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 56 awarded at least one merit-based scholarship DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $7.8 million (merit-based scholarship aid awarded over four years) PLANS OF GRADUATES: Graduates will attend 62 different colleges; 68 will attend a college out of state; 67, a private institution; 28, public PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Western Reserve Academy NUMBER OF GRADUATES: 101 PLANS OF GRADUATES: 24 will attend an in-state school; 77, out of state; 67, private; 31, public; three, international; two, Naval Academy PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Lake Ridge Academy NUMBER OF GRADUATES: 37 DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More
than $3 million PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Hathaway Brown NUMBER OF GRADUATES: 84 PLANS OF GRADUATES: 65 will attend a private school; 19, public; 64 will attend an out-of-state school; 20, in state PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Laurel School NUMBER OF GRADUATES: 67 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 80% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $7 million PLANS OF GRADUATES: Graduates will attend 51 different schools in 21 states and one foreign country; 73% will attend a private college; 13%, an out-of-state, public institution;10%, in-state, public; two will attend St. Andrews in Scotland PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Andrews Osborne Academy NUMBER OF GRADUATES: 50 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 25 DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $2.1 million PLANS OF GRADUATES: 24 will attend a public school; 26, private; 13, in state; 37 out of state PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Our Lady of the Elms School NUMBER OF GRADUATES: 30
17
NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 97% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $7.4 million in scholarships (more than $247,000 per student) PLANS OF GRADUATES: 30% will attend a public institution; 70%, private PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Villa Angela-St. Joseph High School NUMBER OF GRADUATES: 37 (First class at the beginning of our highly selective admissions process. Next year’s enrollment is more than 400.) NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 46% DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: $4.5 million PLANS OF GRADUATES: 73% will attend an in-state institution; 27% out of state; 68%, public; and 32% private PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 100%
Holy Name High School NUMBER OF GRADUATES: 154 NUMBER OR PERCENTAGE RECEIVING SCHOLARSHIPS: 67 PLANS OF GRADUATES: In addition to other plans, four will join the military and four will play junior hockey. DOLLAR AMOUNT OF SCHOLARSHIPS OFFERED: More than $7 million PERCENTAGE OF GRADUATING CLASS WITH PLANS TO ATTEND COLLEGE: 93%
Information was solicited from some of the region’s largest private and parochial schools.
20140616-NEWS--18-NAT-CCI-CL_--
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 16 - 22, 2014
Hope: Structure important to success
Business
continued from PAGE 11
to school and a reason to study. They find relevance with what they are learning, they become more engaged in school and their GPA rises.”
ment is for the best. The program’s reach has grown over time and is set for big changes in the fall. Boys Hope Girls Hope of Northeastern Ohio began offering a nonresidential program for young adults in the area in 2007. The community-based programs offer character development, community building and academic enrichment in an afterschool setting — they aren’t just a drop center or a homework club, said executive director Tim Grady. The programs previously have been offered at John Carroll University, but starting this fall, all of Boys Hope Girls Hope’s programming will be offered on its Garfield Heights campus. Grady said the move will allow the residential and non-residential programs to share resources and serve close to 140 students. “We’re all very excited about this integration,” he said.
Formula for success Grady learned about Boys Hope Girls Hope when he was working at St. Ignatius as its director of the Arrupe Neighborhood Partnership. After referring a student to the program, he ended up joining the team as its program director in 2009. He became executive director two years ago. Much goes into the Boys Hope Girls Hope formula. Academics are critical, as is giving scholars a stable, family-like environment. Grady said the young adults have rules and chores, and they eat dinner around the table together every night. Some staff members live on campus and
MCKINLEY WILEY
One of the Boys Hope Girls Hope houses where students live. essentially serve as parents to the scholars. The scholars also have structured study time every night, and volunteers from the community spend time helping students on subjects like physics and French, in which the regular staff might not have expertise. The students in the program have the chance to attend high-quality private schools in the area; the current high school-age students are enrolled at St. Joseph in Cleveland, St. Ignatius in Cleveland or Walsh Jesuit High School in Cuyahoga Falls. There is a religious component to the program — it was started by the
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Jesuits, though they are no longer formally affiliated with it — but students don’t have to be Catholic to attend. The Jesuit approach to education takes a whole-person approach, Grady said. He said having a healthy spiritual life is viewed as important by the program, and scholars are encouraged to practice their family’s faith, if they want, or to explore other faith options. Service projects also are an important component of the program, and students are expected to get summer jobs in part to save for college. The staff at Boys Hope Girls Hope isn’t equipped to handle extreme behavioral issues, Grady said, but emotional wellness is an important component of the program. Wellness activities like yoga and bike riding are offered, in addition to more formal therapeutic interventions like art or equine therapy. “This is a big piece of the puzzle,” Grady said.
The proper environment Grady said not every story is a successful one. The program is working
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with young adults with complicated back stories. “It’s not always going to work,” he said. But then there are graduates like Jay Finch, now a senior adviser at the U.S. Treasury. Finch, who graduated from St. Ignatius in 2004, said his mother valued education and tried to provide high-quality experiences on her own. Finch joined the Boys Hope Girls Hope program in fifth grade, but left in seventh grade. It was hard to leave his family, but Finch decided in his sophomore year to rejoin the program. Being at Boys Hope Girls Hope gave him the freedom to focus on his schoolwork and take part in extracurricular activities. As a big brother, he said he tries to recreate some of the experiences he received at the program for his younger siblings. Kira Hughes, a 2010 graduate of Walsh Jesuit, called the program instrumental in her life. She praised the parent figures at the program who were always there to tutor the young adults, to guide them and offer advice. “It was a really good communitytype environment to have at home,” Hughes said. Today, Hughes is studying for her bachelor’s degree in business administration and working at credit card company Elavon Inc. in Georgia. She said Boys Hope Girls Hope gave her a sense of “stability and safety,” taught her about rules and responsibility and allowed her to have opportunities — like going to Walsh Jesuit, learning to play the piano and hiking the Rocky Mountains — that she hadn’t had before. But the academic, extracurricular and therapeutic programs Boys Hope Girls Hope offers students — not to mention the groceries, necessities and college scholarships — are expensive. The per-year operating budget for the local program is about $1.2 million, Grady said. Traditionally, Boys Hope Girls Hope receives a lot of foundation funding, as well as individual gifts and money from its two annual fundraisers. This year, it’s kicking off a $5.5 million, two-year endowment campaign, which Grady said should give the program long-range stability.
Employment & Training Solutions Mature Services, Inc. is an equal opportunity employer and service provider with funding from the Ohio Department of Aging.
continued from PAGE 13
Vital skills The entrepreneurship program is pass fail at Hathaway Brown’s Center for Business & Finance, said director Kevin Purpura. “Our girls come into the program with little to no understanding of any the topics we’re going to talk about and I wanted it to be not graded. I wanted it to be a process,” Purpura said. The program has two components: traditional classroom instruction and experiential learning through business plan development and competition. “The classroom instruction is really business school-like. We look at topics such as leadership, management, accounting, finance, economics, strategy and marketing,” he said. “What I’m finding is more and more of our girls are considering finance or accounting or economics at the college level than ever before.” Purpura said when Hathaway Brown began experimenting with this type of programming five years ago, there was a tremendous amount of interest from students, parents and board members. “In my mind, we’re not trying to push girls into business or push girls into becoming an entrepreneur, but we also know that these skills are vital if they are going to be successful in whatever they are doing,” he said.
Their world has changed At Magnificat in Rocky River, more than 200 girls studied entrepreneurial concepts and applied them to student-based projects in economics and entrepreneurship classes, said Dottie Perez, business technology teacher and moderator of the Magnificat Business Club, which is heavily involved with the entrepreneurship programs. “We’ve been focusing on entrepreneurship for five years and the two years under the Veale program has allowed us to really explode the program,” Perez said. Forty-five girls worked together to operate The Blue Streak Bistro, a completely student-run business that is open after school every Tuesday and Thursday. The girls bake and sell cookies, popcorn and Mitchell’s ice cream that they buy at wholesale from co-owner Mike Mitchell, a big supporter and local mentor to the club. Connecting with the city’s vast network of entrepreneurs and resources has had another notable effect on her students, said Korda of Hawken. “It’s been really exciting to see how you can bring many different parts of the Cleveland community into working together as part of the program, she said. “We have people from universities, business accelerators, venture capitalists, and others throughout Cleveland who are incorporated into some aspects of the class and that’s been really great for the kids and it completely alters their world view,” Korda said. “I’ve had kids come out of our program saying I never before this thought I would want to stay in Cleveland after college, but it’s a great city.”
20140616-NEWS--19-NAT-CCI-CL_--
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JUNE 16 - 22, 2014
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
19
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Name Address Rank Phone/website
Expenses 2014 Expenses 2013 (millions) (millions)
Total revenue 2013 (millions)
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2013 fund balance (thousands) Purpose
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See LIST Page 20
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JUNE 16 - 22, 2014
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20140616-NEWS--21-NAT-CCI-CL_--
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JUNE 16 - 22, 2014
CRAIN’S CLEVELAND BUSINESS
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21
PPG: Company investing in its plant continued from PAGE 1
“There’s still pent-up demand,� Johnston said. That all means Pittsburgh-based PPG still is hiring in Cleveland. That growth is striking when compared to where the plant was a few years ago. During the lowest point of the recession, the Cleveland plant employed less than 500 people, manager of corporate communications Mark Silvey said in an email. The current employment level of 700 is higher than pre-recession levels. Schneider said the plant moved to being a 24/7 operation in July 2012. And PPG has been investing in the Cleveland site to increase capacity going forward. Silvey said the company is building a 29,000-squarefoot plant to increase production capacity to support current and future demand from customers. The company would not share the cost of the new building, but in the past five years, PPG has invested about $15 million in the Cleveland site, Silvey said. PPG makes a variety of products, including solvent and waterbased primers and base coats, from raw materials like resins and colorants at the Cleveland plant. It also tests products to customer’s specifications on site. The
new building, which Schneider said is expected to be done in the fourth quarter, will join more than 50 buildings on the site’s 47 acres. Schneider said the plant was built in 1907 and was acquired by PPG in 1947. “We are very pleased and excited to see a business like PPG Industries experience such growth and success,� said Tracey Nichols, the city of Cleveland director of economic development, in an emailed statement to Crain’s. “They are a great manufacturer, and this increase in employment is a positive for our economy and the community. We look forward to see what PPG will do in the future.�
Bright ideas In Cleveland, PPG has about 400 employees in operations; there are about 300 employees on the technical side in either customer-specific teams or core technology teams. The latter works on taking general concepts from PPG’s research headquarters in Allison Park, near Pittsburgh, and making them usable for the customer-focused teams. One of the important components of the work at the Cleveland site is in the color applications department on the technical side of the business.
Waste: Tripling the rate continued from PAGE 4
partnership provides the opportunity for the city to achieve its goal,� Dougherty said. Each year, more than 33 million tons of food waste ends up in landfills. Less than 3% is recovered and recycled. Food waste is the largest contributor of landfill trash, at 21%. The food garbage decomposes into methane, amplifying greenhouse gas emissions. “We’re just throwing away $165 billion in food production,� said Corey Rossen, a marketing representative for Quasar Energy Group, which operates 10 anaerobic digesters in Ohio. “The (Environmental Protection Agency) estimates if we diverted half of that food waste, we’d produce enough energy to power 2.5
.ORG
million homes.� Ohio has more than tripled its food waste diversion rate, from 17,000 tons in 2010 to 53,000 tons in 2012, he said. Quasar and Grind2Energy said they hope other NFL teams and other large-scale producers of food waste take a page from both Forest City and Cleveland Browns’ Hospitality Group’s playbook. The football team’s foray last year into this specific food waste-to-energy program diverted the equivalent greenhouse gas output of nearly 7,000 automobile miles driven. “Imagine if every team, at every venue, in all cities, implemented this approach,� Rossen said. “Others people are seeing the value of what Cleveland is doing to reduce greenhouse gas emissions.� „
EĹ˝ĹśĆ‰ĆŒĹ˝ÄŽĆšĆ? ĨĂÄ?Äž žĂŜLJ ŽĨ ƚŚĞ Ć?ĂžĞ Ä?ŚĂůůĞŜĹ?ÄžĆ? Ä‚Ć? Ä¨Ĺ˝ĆŒ Ć‰ĆŒĹ˝ÄŽĆš Ä?ĆľĆ?Ĺ?ŜĞĆ?Ć?ÄžĆ?!
But nonprofits must remain transparent while pursuing their mission of Greater Good. KĆľĆŒ ƚĞĂž ŽĨ ĹśĹ˝ĹśĆ‰ĆŒĹ˝ÄŽĆš W Ć? ĂŜĚ ĂĚǀĹ?Ć?Ĺ˝ĆŒĆ? Ć‰ĆŒĹ˝Ç€Ĺ?ĚĞĆ? ĂƾĚĹ?Ćš Ä?ŽŜĆ?ƾůĆ&#x;ĹśĹ? ĂŜĚ ƚĂdž Ć?ĆšĆŒÄ‚ĆšÄžĹ?Ĺ?ÄžĆ? ƚŚĂƚ Ä‚ĆŒÄž Ä?ĹŻÄžÄ‚ĆŒ Ć‹ĆľĹ?Ä?ĹŹ ĂŜĚ ĞčĞÄ?Ć&#x;ǀĞůLJ Ä‚ĹŻĹ?Ĺ?ŜĞĚ Ç Ĺ?ƚŚ Ç‡Ĺ˝ĆľĆŒ Ä?ŽžžƾŜĹ?ƚLJ ĂŜĚ Ĺ˝ĆŒĹ?Ä‚ĹśĹ?njĂĆ&#x;ŽŜĂů Ĺ?ŽĂůĆ?!
PPG’s job is to come up with new colors that push the envelope and help its customers better position themselves in the market. The color-related projects begin about three years in advance, said color technologist John Zerucha. The Cleveland location is often tasked with taking the “emotion� a company wants and turning it into a car color. Zerucha said that one-on-one relationship makes the company unique. PPG launches a new color technology every year, working with PPG’s main research and development team and with individual customers to get the specific look they want, said Bill Eibon, global color technology director. In 2015, PPG will introduce the SpectraPearl line, which takes a three-coat process of base, mica and color and turns it into one base coat. That makes the product less labor-intensive, Eibon said. The paint on a car might seem like a purely aesthetic choice for a typical consumer, but a lot goes into making that ruby red sparkle. Vehicles are pretreated and covered with ultrathin layers of products such as primer, sealants, base coats and clear coats, many of which are baked on in large ovens. That process takes up a
RACHEL ABBEY MCCAFFERTY
A display of paint samples from PPG’s SpectraPearl and Andaro brands. lot of energy, increasing costs for automakers. And the trend of automakers using lower-weight materials like aluminum and carbon fiber to make their cars has introduced challenges for paintmakers to overcome. “It’s a good technology to be in if you like to solve problems,� Johnston said.
Out of the oven Those problems give companies like PPG opportunities for innovation. Take the energy consumption issue, for example. Johnston said the time spent baking the paint on the cars in the ovens uses a lot of energy, as does keeping the airflow moving in the spray booths. PPG’s B1:B2 compact paint system helps address that expensive energy use. The product, which was intro-
duced in 2008, essentially combines primer, base coat and clear coats into two steps instead of three. That allows manufacturers to skip or significantly reduce a round in the oven, Johnston said. Overall, the product helps to lower vehicle weights, CO2 emissions, energy consumption and capital investment, he said. Companies can retrofit their current paint shops to use B1:B2 or to build new. Johnston said compact processes are growing overall and rapidly becoming the conventional process for painting vehicles. In just the last five years, compact processes, including B1:B2, have already grown to make up about one-fourth of the volume at the Cleveland plant, Johnston said. He thinks the B1:B2 product puts PPG in the lead, but he said none of the company’s competitors are ignoring the trend. „
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20140616-NEWS--22-NAT-CCI-CL_--
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Frontier continued from PAGE 5
Doing so would involve giving out the full base budget and the rollover, a total of $280 million, in one year. Setting the budget at $205 million made more sense, given the number and size of projects asking for funding this year, according to Norm Chagnon, deputy chief of the state’s Office of Technology Investments. The lower budget won’t handcuff the commission: Chagnon noted the board has the authority to spend more than $205 million, if it sees enough big proposals that look particularly promising.
‘No sunset’ So far this year, the commission
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has awarded about $115 million. Most of the money was given out at last week’s meeting where the commission approved two big proposals through its Technology Commercialization Centers program — a program designed to fund projects that could have a significant impact on Ohio’s ability to develop hightech products. One of those projects was led by University Hospitals: The commission awarded a grant that could reach $25 million to UH’s Harrington Discovery Institute, a nonprofit that aims to help scientists from around the world develop new drugs and commercialize them in Ohio. Since half of this year’s budget has been awarded, it’s feasible — but by no means guaranteed — that the commission could spend its entire $205 million by the end of this year. Even if it manages to do so, how-
JUNE 16 - 22, 2014
ever, $250 million would remain in the Third Frontier program. Would the commission be legally required to cram all of that money into next year’s budget? Chagnon says no. The amendment to the Ohio Constitution that allowed the state to raise $700 million through the bond issue said the commission had to spread the money over at least four years. It doesn’t stop the commission from spending it over a longer period of time, Chagnon said. “There’s effectively no sunset for our authority over those dollars,” he said.
Quality over speed The commission’s director, David Goodman, told Crain’s that he’s less concerned about spending the money quickly and more concerned
about spending it well. Over time, however, all of it will be given out, said Goodman, who became the commission’s leader last year, after Gov. John Kasich named
“It will be spent, and it will be spent wisely.” – David Goodman director, Ohio Development Services Agency him director of the Ohio Development Services Agency. “It will be spent, and it will be spent wisely,” he said. Nowadays, John Huston is comfortable with how the Third Frontier Commission awards money, even if it doesn’t award as much in a given year as it initially planned.
A former member of the commission’s advisory board, Huston was one of several people who criticized the Third Frontier a few years ago for not granting awards fast enough. Last week, however, the commission showed that they’re willing to award significant amounts of money, assuming they see quality proposals, according to Huston, founder and manager of the Ohio TechAngels, a group of individual “angel” investors in Columbus. The commission also showed they can look beyond plans and budgets when necessary, Huston said. He noted how the group last week awarded $26 million in loans to investment funds throughout Ohio that invest in early stage tech companies. The original plan was to award $20 million. “I have confidence that they have flexibility,” he said.
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BUSINESSES FOR SALE
REAL ESTATE AUCTION / JULY 24
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Serving No. Ohio for 33 years. Manufacturing/commercial/ service business specialists.
BUSINESS SERVICES
330-492-6294 or 330-327-7202 fullerassoc@sbcglobal.net
Global Expansion Consulting Construction • Acquisitions Exporting • Financing 28500 EUCLID AVE., WICKLIFFE, OH 44029
This spacious home is 16,000 SF and is nestled on 14.35 beautifully wooded & well-manicured acres in an exclusive Waite Hill location. Features include 25 rooms, 7 bedrooms, 7 full baths, 3 half baths, spacious Gourmet Kitchen with butler’s pantry, indoor swimming pool complex, gymnasium with basketball ct., 7-seat media room/ movie theatre, spacious outdoor “multi-roomed” patio areas with 3 dining areas, brick fireplace and pond. Originally built in 1956 with additions & upgrades in 1996 & complete renovation in 2003.
196 Well Appointed Hotel Rooms (Kings, Queens, and Deluxe Suites), Indoor Swimming Pool, Fitness Center, 6,000 sq. ft. Ballroom/Conference Center, 4-Story Atrium, Restaurant, Bar, Game Room and more. Located on 5 acres. Great highway visibility with large “billboard” signage opportunities.
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20,720 SF COMMERCIAL OPPORTUNITY - 120 N. ELMWOOD AVE., MEDINA, OH 44256 Architecturally significant, 20,720 square foot building on 0.70 acres in downtown Medina. Just off the west end of Historic Medina Square, immediately adjacent to the City Administration Complex and the Medina Municipal Court Complex. Includes, meeting rooms, a full service theatre or concert venue, restrooms, kitchens, offices and much more. 18 parking spaces. Minutes from I-71 and SR 18 in Medina County, OH near Shopping, Dining, County Fairgrounds, Recreation Center, Parks and Downtown Medina Amenities. Currently Zoned C-2 Retail Office District, perfect for a variety of uses including general retail, office, theatre, banks, restaurants, cultural, religious, bed and breakfast and non-profit.
If you’re thinking of selling your business, please contact Fuller & Associates, Inc. Don Dreisig, President
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C. W. JENNINGS INDUSTRIAL EXCHANGE 9450 METCALF RD., WAITE HILL, OH 44094
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BUSINESS SERVICE OWNERS! Submit your business card to promote your service. To find out more, contact Denise Donaldson at 216.522.1383
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COMMERCIAL SPACE CONTRACTOR’S BUILDING FOR SALE OR LEASE LLOYD RD., WICKLIFFE 8210 SF .86 AC Office...2,890 SF Garage...2,100 SF Warehouse ...1,950 SF Leased...1,290 SF THE ZELKO CO. C-216-469-5097
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E-MAIL US YOUR AD DDonaldson@Crain.com
To place your Crain’s Cleveland Business Executive Recruiter ad Call Denise Donaldson at 216-522-1383
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THEINSIDER
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REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
JUNE 9 - 15
The folks at Chrysler sure know how to floor it
The big story: University Hospitals plans to invest $28 million in a new outpatient health center and freestanding emergency department in Broadview Heights, and MetroHealth isn’t too pleased about it. The planned 52,000-squarefoot health center will sit on more than 6 acres visible from Interstate 77 and be accessible from the state Route 82 interchange, not far from where MetroHealth is plotting a new outpost. UH is expected to break ground on the project later this year, with a projected completion scheduled for fall 2016. MetroHealth CEO Dr. Akram Boutros said he was “surprised and disappointed” to learn that UH was plotting a facility “nearly identical” to the one his enterprise was planning for the area.
■ When a large industrial building starts rising at Cornerstone Business Park later this year, it will reuse more of the one-time Chrysler Twinsburg stamping plant than the ground the factory formerly occupied. Pecan wood flooring pulled from the plant before it was razed will be used to build floors for lobbies and other parts of ■ Scientists haven’t perfected a way to preoffices for industrial and warehouse tenants vent people from dropping their phones who lease space in the new building, in the toilet, but they may have found a according to Terry Coyne, an executive way to make their managing director displays shatterat the Newmark proof. Grubb Knight Frank Take that, sideoffice in Cleveland. walks. He is the broker University of marketing the propAkron polymer scierty for its owners, a entists say they’ve joint venture of developed a transScannell Properties parent electrode of Indianapolis and that could protect DiGeronimo Cos. of brittle smart phone Independence. screens once and The automaker, for all. The Akron which put the researchers say they stamping plant in MARC GOLUB have demonstrated Twinsburg because how a transparent of the bedrock at This plant is gone. But its wood flooring lives on. layer of electrodes the site, used the on a polymer surface could be tough and hard pecan wood to absorb the pounding flexible. produced by the plant’s stamping machines, Coyne said. Rather than burn the This discovery could revolutionize and scarce and prized wood, some was donated replace conventional smart phone screens, to A Piece of Cleveland, which reuses wood according to Yu Zhu, an assistant professor saved from old buildings, and some was of polymer science at the university. kept for future use. Today, the coatings are made of indium
Selecting a partner: Cleveland Clinic and Select Medical, a publicly traded health care company, formed a joint venture that plans to build a 60-bed, adult inpatient rehabilitation hospital in Avon. The new rehabilitation hospital — the cost of which was not disclosed — will be next to the Clinic’s Avon medical campus, which opened in 2011 just off Interstate 90. Construction is expected to begin this summer, with an opening planned for late 2015. In the money: Northeast Ohio tech companies and projects received almost half of the $84 million that the Ohio Third Frontier Commission awarded on June 11. The commission — which oversees technology-related economic development projects for the state — gave the Harrington Discovery Institute $25 million. The commission also loaned a total of $12 million to four local funds that finance high-tech startups. Roughly $3 million went to each of the funds, which are run by the Cleveland Clinic, North Coast Angel Fund, the Lorain County Community College Foundation and Bizdom Cleveland. Out with the old: Cleveland City Council approved two ordinances that clear the way for demolition of the Fifth Church of Christ Scientist at Lake Avenue and West 117th Street and for the construction of 11 townhomes and a new shopping strip. Last month, the administration of Mayor Frank Jackson selected developer Brickhaus Partners LLC to build the townhomes and a small public park on the church site. The city will take down the church, which has stood empty for about 28 years. The city hoped to find a way to salvage the 87-year-old octagonal church for reuse, but it would cost $10 million to save the structure. Safe bet:
ThistleDown Racino is staying put. The racino said it will remain at its current Cuyahoga County location — straddling North Randall and Warrensville Heights — and will not exercise a state-approved option to move to the Akron–Canton area. Rock Ohio Caesars, owner of ThistleDown Racino, said it “considered its option to move the facility, but ultimately determined that Cleveland’s east side is the best location to operate and further expand the facility.” The 89-year-old racetrack, which recently was expanded to include video lottery terminals, reopened as a racino in spring 2013.
To market they will go: Timken Co. is taking steps to release products faster. The company announced a redesign of its engineering, product management and business systems teams and a $60 million investment in the company’s “concept-to-commercialization efforts” called the DeltaX Initiative. Timken expects to increase the number of products and features it introduces to the market by about 30%. The company plans to hire almost 200 engineers and “related technical resources” in the next three years.
Repurposing the stamping plant’s onetime floor boards as part of a new building brings to mind saving architectural elements of century-old buildings when they meet the wrecking ball — even if, as in this case, the former structure dated from just 1957. — Stan Bullard
A crack team from Akron is on the smart phone case
WHAT’S NEW
COMPANY: Medical Mutual of Ohio, Cleveland OCCASION: Its 80th anniversary The company that Northeast Ohioans today refer to as Medical Mutual of Ohio traces its roots to 1934, when a group of fledgling health insurance pioneers in Cleveland authorized a loan of $7,500 to start the Cleveland Hospital Service Association (CHSA), a prepayment hospitalization plan to help people pay for their health care needs. Medical Mutual called it “one of the first plans of its kind in the nation and the first ever multi-hospital payment plan.” The next significant milestone in the corporate history was in 1945, when Medical Mutual of Cleveland was formed to provide insurance for the payment of physicians’ bills. In 1957, the CHSA merged with the Akron Hospital Service Association to form Blue Cross of Northeast Ohio. In 1984, that firm merged with Medical Mutual of Cleveland to become Blue Cross and Blue Shield of Northern Ohio, combining coverage for hospitalization and physician fees under one roof. Today, Medical Mutual of Ohio is the largest health insurance company headquartered in the state. As a mutual company, Medical Mutual says, “We operate for the benefit of our members without needing to meet the demands of stockholders or Wall Street analysts. Instead, we focus on developing products and services … and help our members achieve their best possible health and quality of life.”
tin oxide, or ITO. The coatings are more brittle and more likely to shatter. The findings were published in American Chemical Society’s journal ACS Nano. “We expect this film to emerge on the market as a true ITO competitor,” Zhu said in a statement. “The annoying problem of cracked smart phone screens may be solved once and for all with this flexible touchscreen.” — Timothy Magaw
They’re focused like a laser on new markets, including Cleveland ■ Your pain in the neck could be big business for the Laser Spine Institute. The institute, a Florida-based provider of minimally invasive spine surgery, has tapped Northeast Ohio as the expansion site for one of its newest centers. The new center will be located on Bradley Drive in Mayfield Heights. The institute is in the process of hiring 38 employees for the facility, which is projected to open at the end of the year. Within three months of opening, the center is expected to boast 50 employees. The institute treats neck and back pain caused by spinal stenosis, degenerative disc disease, pinched nerves and other ailments. At present, the institute operates four surgery centers across the country in Tampa, Fla., Scottsdale, Ariz., Philadelphia and Oklahoma City. In addition to the Cleveland site, the institute plans to open new outposts in St. Louis and Cincinnati. — Timothy Magaw
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
gon, at 1,357 miles. (Steve Jobs attended, but didn’t graduate from that school.)
Stick around
M&Ms are not a colored food
■ If you’re in stay-at-home mode this summer, Cleveland is a pretty good place to do it. WalletHub.com ranked the 100 largest U.S. cities based on their “staycation suitability.” The website said it considered 20 key factors, “from the number of public golf courses and swimming pools per capita to the cost of maid services.” Cleveland was No. 14, with particularly strong showings in “food and entertainment” and “rest and relaxation.” (It turns out, for instance, that the city is No. 1 in public pools per capita. Who knew?) Topping the list was Buffalo — if you lived in Buffalo, would you ever want to leave? — followed by Minneapolis, Cincinnati, Pittsburgh and Portland, Ore.
■ More than a third of U.S. adults are obese, according to the Centers for Disease Control and Prevention, but when doctors tell us to eat healthier and exercise, it “feels like we’re back in school and have been called to the principal’s office,” according to MarketWatch.com. And that’s a real missed opportunity, say some experts, including Kristin Kirkpatrick, manager of wellness nutrition services at the Cleveland Clinic Wellness Institute. She offered the following, simple tips for controlling weight: ■ Eat palm-sized portions. Forget about counting your calories or weighing your food. ■ Eat five colors a day, which will help ensure you get a good balance of nutrients. This means eating bright colors and limiting your whites and browns, which are typically the colors of processed foods. ■ Be consistent. Kirkpatrick doesn’t believe in “cheat days,” a diet strategy where you’re allowed to eat whatever you want one day a week, which some think makes a diet more sustainable. Instead, she tells clients to eat good-quality calories 85% of the time every day. With the other 15%, you can eat foods that aren’t quite as good for you. ■ Sleep. Research shows that lack of sleep makes it hard for us to control our appetites.
A long way from home ■ In a new analysis based on user data, education analytics company Niche Ink examined the profile of college-bound students. As The Washington Post noted, more than half — 58% — of high school graduates go to college within 100 miles of home, according to an analysis of 350,000 Niche users between 2012 and 2014 who the firm was able to associate with both a high school and a college. Among the findings: States in the Northeast lose the most students to other states, and students with higher SAT scores traveled farther. Only 11% of students venture more than 500 miles from their hometown. Niche Ink identified the 25 schools for which students travel the farthest, in miles. Oberlin College was the only Ohio school on the list, in 20th place, with students coming from an average of 836 miles away. No. 1 on the list was Reed College, in Ore-
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