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VOL. 37, NO. 39

SEPTEMBER 26 - OCTOBER 2, 2016

Source Lunch

Business of Life BrewBoat brings party to the local waterways. Page 29

CLEVELAND BUSINESS

Heather Roszczyk says entrepreneurial scene in Akron is on rise. Page 30 MANUFACTURING

The region’s wealthiest suburbs Page 35

By KEVIN KLEPS

SPORTS BUSINESS Schulman takes long Tribe’s playoff view after run is driving tough time sales for 2017

kkleps@crain.com @KevinKleps

By DAN SHINGLER dshingler@crain.com @DanShingler

There are basically two roads forward for the Fairlawn-based plastic compound maker A. Schulman, according to analysts who follow the company. One is likely long and leads to an independent future, where the company regains its stock value with its own earnings and, Gingo perhaps, again becomes an acquirer of other companies. The other leads to Schulman being purchased itself, by a private equity firm or maybe even a competitor. CEO Joe Gingo is putting on boots for the longer slog, though even he concedes the ultimate choice of routes might not be his to make. Gingo, who was brought back to the helm in August to right the Schulman ship, said he will unveil a fiveyear plan to investors later this year, with the backing of a third-party adviser to check and vouch for his numbers and projections. The company announced on Sept. 13 that Citi will be in that role. Gingo said he knows bringing in an outside adviser adds to speculation that the company could be sold, but said he needs the credibility such a firm can bring. SEE SCHULMAN, PAGE 17

The List

Francisco Lindor and the Indians are poised to win their first division title since 2007. (Ken Blaze for Crain’s)

s the final three home games of the regular season approached on Friday, Sept. 23, the Indians were headed for a fifth consecutive season with an average attendance that fell short of 20,000. The Tribe’s playoff run in 2016, however, already is making an impact on the club’s 2017 gate numbers. Tim Salcer, the club’s senior director of ticket sales and service, said the Indians have sold the equivalent of 600 full season tickets (FSEs in professional sports lingo) since Aug. 1. From Sept. 12-18, when the Indians’ chances of making their first postWild-Card appearance since 2007 became a near-formality, the club sold more than 200 FSEs. “It has not stopped since the (14game) winning streak in June,” Salcer said. “It has been extremely intense from then on.” The Indians have long thought that pumping up their season-ticket base was one of the most critical steps they could take to improve their attendance, which has ranked in the bottom three of Major League Baseball each year since 2011 and hasn’t been among the top 20 clubs since 2002. In 2008, when the Tribe was coming off a trip to the American SEE TRIBE, PAGE 34

FINANCE

Key is eyeing opportunities in Eastern Ohio By JEREMY NOBILE jnobile@crain.com @JeremyNobile

KeyBank’s recent move outlining an Eastern Ohio market centered on Akron and naming fresh leadership to direct it is a power play underscoring the bank’s goal of dominating business there. The timing is certainly notable.

Key announced its Eastern Ohio market president, Tim Burke, earlier this month, in the wake of FirstMerit Bank — the only regional bank to be headquartered in Akron — dissolving into Huntington Bank through those institutions’ recent merger. Deals of this size, in which Huntington absorbed FirstMerit’s more than $25 billion in assets and a customer base that makes it the largest deposit-holder in Ohio, create a de-

gree of volatility that spells opportunity for other companies to capitalize on shakeups by grabbing customers and bankers alike. And, in this case, it was that very shakeup that supplied Key with some of the leadership for this newly delineated market segment just outside its Cleveland home base, where Huntington is closing the gap on Key’s Northeast Ohio market share. Burke comes to Key from FirstMer-

it, where he was the regional CEO for the bank’s Central Ohio market. Reporting to him is another fresh hire in Eric Dellapina, Key’s head of commercial banking for the same market. Dellapina previously worked at FirstMerit as president of its Canton and Western Pennsylvania markets. And with them is familiar company in Lucia Pileggi, a KeyBank veteran who will continue to lead the SEE KEY, PAGE 7

Who to Watch in Law They come from big firms, small firms, nonprofits and local companies. Here are 10 people shaking up the region’s legal scene. Pages 19-27

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Businesses chipped in more than cash for RNC By JAY MILLER jmiller@crain.com @millerjh

Local businesses, civic groups and individuals wrote checks large and small that helped put the Cleveland 2016 Host Committee Inc., the local nonprofit created to bid for and then put on July’s Republican National Convention, over the top of its $64 million fundraising goal. Some, though, provided more than cash. More than 50 local firms pitched in with $7.1 million in in-kind services, according to the host committee’s report to the Federal Elections Commission filed last Monday, Sept. 19, for activity from Aug. 12, 2014, to Sept. 4, 2016. Instead of cash, many of the local companies contributed time, handling things like legal and accounting services. Others provided everything from office furniture to cars to food. “I believe this in my heart. I don’t believe there was another community that hosted a political convention of any of the ones we looked at over the last decade or more that had such an all-out community effort to make it successful,” said David Gilbert, the committee’s president and CEO, in a telephone interview. “The in-kind contributions are a perfect example of why that’s the case.” The host committee is a nonpartisan nonprofit created in 2014 to bid on bringing a political convention to Cleveland. In its bid for the Republican convention, the host committee pledged to raise $64 million. That was a tall order, since Congress in 2014 eliminated $36.4 million in public funding for political conventions — $18.2 million each to Democrats and Republicans — and the Donald Trump candidacy turned off corporations that had donated to conventions in the past. Some of the in-kind contributions were for convention necessities,

“I believe this in my heart. I don’t believe there was another community that hosted a political convention of any of the ones we looked at over the last decade or more that had such an all-out community effort to make it successful.” — David Gilbert, president/CEO, Cleveland 2016 Host Committee things the contract with the Republican National Committee required the host city to do, Gilbert said. That included some of the telecommunications hardware and services that were part of AT&T Ohio’s $2.8 million in-kind contribution. Also, auto dealer Bernie Moreno’s company, the Bernie Moreno Cos., supplied the use of six Buicks and GMC trucks, valued at $20,000, that fulfilled the host committee’s pledge to supply cars to help Republican National Committee staff to get around Cleveland. Others were things that the host committee otherwise would have had to write checks for, like legal and accounting services. The law firm Kohrman, Jackson & Krantz LLP donated $815,904, mostly in the volunteer time of several of its attorneys, including managing partner Jon Pinney, who served as general counsel, secretary and treasurer of the host committee for its two-year run. “KJK, like so many other local organizations, is proud to have made a significant financial commitment to the Cleveland 2016 Host Committee,” the firm said in an emailed

statement. Its work included authoring the voluminous bid document and negotiating contracts for hotels, transportation and the build-out of Quicken Loans Arena. In addition, Pinney signed nearly every check the committee disbursed. Similarly, Thunder::tech, a Cleveland-based digital marketing firm, provided the committee with mobile app strategy and development, and the host committee’s social media strategy. It previously developed similar software for Destination Cleveland, the convention and visitors’ bureau that supplied the staffing backbone for the host committee. The company also provided 24/7 on-call staff during the convention, which took place July 18-21, to make sure all those apps stayed live. Still others helped improve the convention management or helped show off the city. Bruce Hennes, the managing partner of Hennes Communications, explained that his firm’s $9,600 in-kind contribution amounted to prepping about 40 host committee staff and volunteers for dealing with the expected media onslaught and any crisis that might arise — but fortunately did not. “This was an issue that needed to be managed,” said Hennes, whose firm specializes in crisis communications. “It was about how to tell the story of what happened and what can be expected with as much transparency and authenticity as possible. East Cleveland-based GE Lighting provided $365,000 in LED lights that were strung above downtown streets. Gilbert said the lighting, as well as planters provided by the Scotts Co. of Marysville, Ohio, will remain to give downtown a more festive look. Others contributions just made the life of convention planners a little easier. The filing lists a $225 line item for what looks like a catered meal from Food for Thought, a Mentor catering firm.

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CRAIN’S CLEVELAND BUSINESS l SEPTEMBER 26 - OCTOBER 2, 2016 l PAGE 3

Alliance expansion includes building buys By STAN BULLARD sbullard@crain.com @CrainRltywriter

Aaron Grossman, CEO and principal owner of the Alliance Solutions Group of affiliated staffing and recruitment firms, went a big step beyond simply leasing the space his company needed to expand its headquarters in the Rockside Road office market. He formed an investor group that last month bought two lenderowned, four-story office buildings for a total of $5.7 million. Alliance plans to move about 75 full-time employees to one of the buildings, known by its 6161 Oak Tree Boulevard address, by next May from the Plaza 45 Building, 4500 Rockside Road. The group also bought the office building at 4141 Rockside Road from the same lender, U.S. Bank as successor trustee for holders of Bear Stearns Commercial Mortgage Certificate Series 2007-PWR16, a package of mortgage-backed securities. Alliance staffers will occupy all of the third floor and part of the first floor at 6161 as the firm expands to 20,000 square feet from its current 18,000 square feet. The firm is moving to offices designed for its current operations; the offices it’s exiting are in three different locations in the building because it added suites as it grew by adding business lines. “We did not anticipate growing as much as we have,” Grossman said.

“We’ve had to piecemeal things. The new space will fit our business model as we operate today, with a shared services firm (TalentLaunch) that provides administrative support” to the other affiliates. Alliance serves the accounting, health care, legal, scientific, and manufacturing industries with various services in staffing or recruitment. Grossman, a Beachwood native, launched Alliance in 2001 to provide accounting and financial support services. The firm expanded into other areas as Grossman and his partners found people to build business in different industries. Alliance Solutions has five partners, but Grossman is the majority owner. “We wanted to own the next building we occupy,” Grossman said. “When you start looking at the annual costs of office space and want to ensure the design of the space really fits your business, we think owning the facility is the best way to accomplish that. We have a lot of flexibility now. We were paying a few hundred thousand a year in rent. That will be an easier pill. We’ll be in a little more new space than we have today for about the same cost.” The new owners, Sixty One Sixty One Alliance LLC and Forty One Forty One Alliance LLC — also reflecting the street addresses of the properties — have not decided on their plans for the 4141 Rockside Building beyond leasing it up to improve its 22% vacancy rate. Besides himself, Grossman said, Matt Lyon,

Alliance’s future home is 6161 Oak Tree Boulevard. (Stan Bullard) Alliance’s chief financial officer, is an investor in the buildings, along with two silent investors. The city of Independence will provide Alliance Solutions a Job Retention and Creation Grant totaling $400,000 in three payments after it occupies its new office, according to legislation Independence City Council unanimously adopted last Tuesday, Sept. 13. The first payment will be for $200,000 within 30 days after Alliance occupies its new office, and the remainder will come in two payments over the next two calendar years. The company agreed to make its best efforts to expand its payroll to 95 with a payroll of $8.5 million annually within five years from its current staff of 75 and payroll of $5

million yearly. Independence Mayor Anthony Togliatti said the agreement shows the city’s support for helping companies grow in the suburb. The property purchases, he said, show how invested the company’s owners are in the city’s future. For his part, Grossman said the grant will help the company with moving expenses and renovating the new office to its needs. He said he’s confident the company can meet the hiring goals because, besides organic growth, the company has embraced an acquisitions plan to grow outside the region following its purchase of a Eugene, Ore., firm and other acquisitions it plans to make soon. All told, Alliance has a total of

150 workers at seven Northeast Ohio offices and Oregon. The sales by two affiliates of Dallas-based loan special service C-III Asset Management LLC, is the last step following a 2012 foreclosure proceeding that U.S. Bank as trustee filed to collect on a $10 million securitized mortgage. The prior owner of each building was a partnership, 4141 Rockside 6161 Oaktree LLC, managed by Beachwood-based real estate investor and broker Donald King. When the foreclosure case was filed, vacancy in the south suburban market, which includes Rockside Road, stood at 24%. It has since fallen to just below 12% at the middle of 2016, according to statistics from the Newmark Grubb Knight Frank brokerage. David Browning, managing director of CBRE Group’s Cleveland office, said the sale to local investors is part of the rebound of the Rockside Road office market, which is continuing to gain momentum. “It’s great that a user-buyer will occupy one of the buildings,” Browning said. “They have made a good investment.” The 4141 building, which has 74,000 square feet of office space, dates from 1984 and changed hands for $2.5 million, according to Cuyahoga County land records. The 6161 building with 62,000 square feet of office space, dates from 1979, was sold for $3.2 million, county records say. Both changed hands Aug. 8.

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CRAIN’S CLEVELAND BUSINESS

Study: Hospitals need to ‘expose’ EHR tweaks

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Facing requirements to use electronic health records, some providers have found their own simple adjustments to ease implementation, according to a qualitative study analyzing doctor perceptions of EHRs. But they aren’t always sharing those tweaks to the process with others, said Tracy Porter, co-author of the study and an assistant professor at Cleveland State University. The study won a best paper award for empirical research from the Academy of Management and was presented at the organization’s 2016 annual meeting in August. “There’s a lot of good to EHRs, but if there’s problems, I think we need to, as we move forward, learn from each other, expose those,” said Porter, who conducted the interviews for the study, speaking to physicians about the challenges they face. “I think the workarounds aren’t a bad thing necessarily, but I think we can share with each other.” The study, which also included researchers from Virginia Commonwealth University and the University of Nebraska-Kearney, found that physicians found what Porter called “workarounds,” or tweaks to processes to help make the EHR technology work for them. For example, one physician Porter spoke with decided to put her laptop on a mobile cart so she could wheel it around and face the patient while talking. Officials with the Cleveland Clinic and University Hospitals said each has processes in place to encourage providers to share these fixes. The use of EHRs, mandated by the 2009 Health Information Technology for Economic and Clinical Health (HITECH) Act, has presented a number of challenges, including physi-

“If (providers) have workarounds that can be automated, we want to help them automate them and make them workflows. I think the biggest hurdle is when something’s a struggle, they just work around it, no matter how painful it is.” — Dr. Sumita Khatri, physician lead in the Cleveland Clinic’s Office of Professional Staff Affairs cian workload, technology investments and user training. It’s a source of stress and anxiety for providers that cannot be ignored, said Dr. Sumita Khatri, physician lead in the Clinic’s Office of Professional Staff Affairs. Khatri, who works with issues of engagement including electronic health records, said physicians often see EHRs as a problem rather than a tool. The key to improving the experience is a shift from suffering through the technology to demanding it works for them. “If (providers) have workarounds that can be automated, we want to help them automate them and make them workflows,” Khatri said. “I think the biggest hurdle is when something’s a struggle, they just work around it, no matter how painful it is.” The ability to automatically divert emails so the appropriate person or a selection of pre-written replies could be the solution for some physicians, Khatri said. But it’s a matter of teaming up physicians with an IT partner who can make

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such things a reality. “Until and unless health care organizations invest to do that, there’s a concern that it won’t change,” Khatri said. University Hospitals also has processes in place to find ways to improve the experience of using EHRs. A committee of physicians, administrators and IT specialists meets monthly to improve EHR processes and the product. Once a quarter, physician leaders meet with senior leadership of an EHR company to discuss ways to improve the product itself. These are rather common practices, said Dr. Cliff Megerian, president of physician services at UH. “All organizations, including ours, that are going to be successful with the EHR are going to have the notion that education is constant, and teamwork and idea-sharing is going to be the solution to dealing with this additional tool,” Megerian said. Megerian said there are three ways to address the concerns with EHR implementations, two of which are being addressed regularly in committees and other forums: finding the most effective way of inputting the data, and seeing hospitals, systems and developers compete for the best process and product. The third way is a much broader issue that touches back to the ideal goal of EHRs: for patients to have a legible, retrievable, comprehensive medical record that follows them throughout their lives. Achieving this, Megerian said, likely would have to come from the federal level. Porter conducted in-depth interviews over six months in 2015 with 16 physicians working for two large health systems in a large U.S. Midwestern city. The study is currently under review for publication with Medical Care Research and Review. In her interviews, Porter said she also found that though overall, physicians trust the EHR information, they do find discrepancies or mistakes in the records. Although they didn’t always report those, they would take steps to correct any issues. “Because in the end, consistently, everybody just wanted to make sure that patients were cared for,” Porter said.

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Volume 37, Number 39 Crain’s s Cleveland Bus sines ss (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2016 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s s Cleveland Bus sines ss, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-2 210-0 0750 Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.

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The Refugee Services Collaborative of Greater Cleveland wants people to know that refugees aren’t a negative force on the economy. In fact, they’re the opposite. “They’re a boost to the economy,” said Danielle Drake, chairwoman of the public affairs committee for the collaborative. Drake also is the community relations manager for Us Together Inc., one of the three refugee resettlement agencies in the collaborative. The collaborative was founded in 2011 and includes a variety of education and government resource groups, in addition to refugee resettlement organizations Us Together, Catholic Charities Migration and Refugee Services, and the U.S. Committee for Refugees and Immigrants’ Cleveland office. Last Thursday, Sept. 22, the collaborative held a showing of four short documentaries highlighting the effect of refugees on the economy as part of Welcoming Week, which Drake described as a national initiative designed to get Americanborn individuals to get to know their refugee and immigrant neighbors. This is the second year of the collaborative’s short film series. The first year focused on human interest stories; the second year’s focus is on economic impact, though the films

“Refugees might be one way to get solid employees.” — Tom Mrosko, director of Catholic Charities Migration and Refugee Service included plenty of personal details about the refugees featured. They worked at a variety of companies including a manufacturer, a beauty salon and the Jack Cleveland Casino. Both sets of films have been funded by the Community West Foundation. This year, the collaborative received $30,000 for the films, Drake said in an email. The collaborative hired a creative director to oversee the program, as well as local filmmakers to make the documentaries. The first year of films served as a non-confrontational marketing tool, she said, and was “so well received” the group decided to focus on the economic impact of refugees for the second year. The collaborative had a lot of data from an in-depth economic study it did in 2012, but some people are better at absorbing visuals, she said. The collaborative allows the resettlement agencies to come together to work on these bigger projects, like the films and the economic report, said Tom Mrosko, director of

Catholic Charities Migration and Refugee Services. These types of projects are things the agencies have wanted to do, he said, but that can be difficult to balance with the actual work of resettling refugees. “Working together, we’re able to tackle these macro issues,” Mrosko said. The key work of the resettlement agencies in Cleveland is to get the refugees here, settled and in a job, Mrosko said. The collaborative wants to raise awareness of the benefits refugees bring: They may be multilingual and many have strong work ethic and drive, he said. They can also help to diversify a workforce. “Refugees might be one way to get solid employees,” Mrosko said. Brian S. Upton, executive director of faith-based organization Building Hope in the City, which offers resettlement assistance in the city as one of its services, said employment is a major “hurdle” the community needs to get over, particularly noting entry-level positions at manufacturers. And Drake noted that refugee resettlement could be an answer to Cleveland’s decreasing population. But the key will be getting that message to companies that don’t already open their doors to refugees. The films will be available on YouTube, but Drake said the hope is that they’ll get invited to do film presentations and Q-and-A sessions. Thursday’s event was just the start of a yearlong, grassroots campaign, Upton said.

Netflix-original movie begins production in Northeast Ohio A feature film that will debut next year on Netflix has begun shooting in Northeast Ohio. The film is called “Little Evil,” and it’s written and directed by Eli Craig, who directed and wrote the 2010 cult horror comedy “Tucker & Dale vs. Evil.”

“Little Evil” stars Adam Scott, who last year came to Northeast Ohio to shoot “My Blind Brother,” a dark comedy that’s being released this month. Scott plays Gary, newly married to Samantha (played by Evangeline Lilly of TV’s “Lost” and “The

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Hobbit” films), whose 6-year-old son is the Antichrist. “Little Evil” will appear on Netflix “sometime in 2017,” according to a news release from the Greater Cleveland Film Commission. Film commission president Ivan Schwarz said in an interview on Friday, Sept. 23, that the film is shooting in the city of Cleveland and in outlying areas of the region. He said this is the first Netflix-original project to film in Cleveland. That could benefit the region over the long haul, since Netflix is spending heavily to produce original content. Schwarz, who came to Cleveland after a long career in Hollywood, said Northeast Ohio “is getting a good reputation around the country (as a place to shoot films). Instead of coming here because they know me, they’re finding us.” He said the region continues to benefit from the Ohio Motion Picture Tax Credit, which this year was doubled to $40 million annually. “Little Evil” is produced by Bluegrass Films and Mandalay Pictures. Variety reported that the film was originally set up at Universal Pictures, where Bluegrass’ Scott Stuber has a first-look deal. “The studio let it go, but Craig delivered a script that Stuber couldn’t pass up,” according to the trade publication. “The project soon gained momentum with Netflix eventually coming on to finance and distribute.” — Scott Suttell

CRAIN’S CLEVELAND BUSINESS

KEY CONTINUED FROM PAGE 1 private banking team for the same region. Pileggi’s résumé includes nine years with FirstMerit. High-profile bankers typically are reluctant to talk about other competitors publicly. But actions tend to speak louder than words. And it’s quite clear that this is Key’s chance to re-energize its business in its 10-county Eastern Ohio region, where the major city markets are Akron, Canton and Youngstown. “There’s always some sort of disruption in each of these markets, however the opportunity comes about,” Burke said. “Our goal is to continue to be positioned to grow market share and expand the brand regardless of what those disruptions and volatility issues may be.” Market observers certainly have taken note of Key’s latest play. “It shows you (Key) wants to be very strong across Northeast Ohio and protect their backyard,” said Fred Cummings, president at Cleveland’s Elizabeth Park Capital, a bank-focused hedge fund. “And they were opportunistic in bringing an entire team over like this, which is hard to do,” Cummings said. “This is a statement that Key really likes the opportunity in their footprint.” It’s not like Key, a large regional bank hovering around $135 billion in total assets with its recent purchase of Buffalo’s First Niagara Financial Group, doesn’t already have a strong presence in its Eastern Ohio region.

But the intent of doubling down on that area now is to deepen penetration with a team already familiar with the region and its businesses. The large-scale economic development happening there is “very enticing,” Burke said, referencing the slew of large companies and universities in the market. And Kip Clarke, KeyBank executive vice president and regional executive for the Midwest region, referenced that in the company’s announcement about the new market leaders, saying the region has “great potential” in terms of economic development. Burke said the bank is “on the forefront of even more significant development and growth in each of these communities. When I think about the investments we’re making, it makes sense to help support the development mentality.” He added, “It’s an opportunity to revitalize and re-energize our efforts in this market to coincide with revitalization of each of the communities.” As far as other strategies and goals set in terms of grabbing more of the market, expect the bank to press its team-oriented go-to-market strategy in attempts to attract new business clientele with a deep suite of services. With barely a month in the books so far with Key, Burke said those teams and specific goals are still being developed. But expect them to execute on those plans soon. “We’re going to target those companies we don’t bank with currently with a team approach … and the best team typically wins,” Burke said.

“There’s always some sort of disruption in each of these markets, however the opportunity comes about. Our goal is to continue to be positioned to grow market share and expand the brand regardless of what those disruptions and volatility issues may be.” — Tim Burke, KeyBank Eastern Ohio market president

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OneRecord is a â€˜powerfulâ€™ tool for Tri-C By RACHEL ABBEY MCCAFFERTY rmccafferty@crain.com @ramccafferty

Cuyahoga Community Collegeâ€™s OneRecord initiative might sound straightforward. It gives all of its faculty and staff access to all of the information the college has collected about students in one place, letting them help any student at any time. But with as much data as a college collects on students, thatâ€™s no easy task. Tri-Câ€™s OneRecord initiative takes a wide variety of student data from the existing systems the college is using â€” academic data, personal data, financial data and more â€” and compiles it into one easily viewed format.

And that means faculty members, counselors and everyone else on the collegeâ€™s staff has the â€œsame ability to help a student,â€? said Jerry Hourigan, Tri-Câ€™s vice president and chief information officer. They donâ€™t have to pass the student along to their colleague who oversees a particular area, but can instead help them right away. â€œThatâ€™s pretty powerful stuff,â€? Hourigan said. OneRecord is part of the One Door: Many Options for Success initiative, Tri-C president Alex Johnsonâ€™s vision of making the college process more streamlined for students and cutting down on their time to graduation, said Terri Pope, the collegeâ€™s Westshore Campus president. Tri-C is a large school that has many entry points,

campuses and programs, and the OneRecord model brings about 100 points of data together into one searchable system. That data includes everything from contact information to tuition balances to the courses in which a student is currently enrolled. Tri-C in November 2015 entered into a contract with Hyland Software Inc. for the project, Pope said, and the program launched June 27 for faculty and staff. The goal is to add a student component sometime this year. Hourigan said when the college began talking about the OneRecord initiative, the idea was that there might be a product on the market already that would serve their needs without a lot of tweaks or customizations. Although Pope said there was one com-

pany with a program in beta-testing mode, Tri-C couldnâ€™t find any ready to go. So Hourigan said it made sense to build a system from the ground up with Hyland, which was right down the road in Westlake. Tri-Câ€™s OneRecord system uses Hylandâ€™s OnBase program â€” an enterprise information platform â€” to host its data, said Laurel Stiller, Hylandâ€™s global portfolio manager, higher education. OnBase can manage content, business processes and cases. The last item is the most important in the TriC program, as it lets the school treat each student as a case. While most colleges are still using multiple systems, Stiller said she thinks this is a growing trend. She has seen a lot of interest in a product like

this, and some schools have been working to assemble an approach on their own. And the University of Notre Dame is using Hylandâ€™s OnBase program in a similar way to Tri-C for its first-year advising program. The concept of colleges creating one-stop shops for students has been a trend in higher education in the past decade, Stiller said, but what makes Tri-Câ€™s new model stand out is that the college has supported its staff with technology. The one-stop model is for students, so they can go to one place for all the answers they need. But that can be â€œcomplexâ€? on the staff side, she said. Tri-Câ€™s OneRecord initiative takes all the data staff members might need and puts it in one place.

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PA G E 9

Former high school site of big sports play STAN BULLARD sbullard@crain.com @CrainRltywriter

Over his career, Sam Cannata has built office and industrial buildings and townhouses, but his most recent deal puts him in a sports-related business and a role as steward of a beloved former high school in Bedford. Cannata plans to convert the former St. Peter Chanel High School, 480 Northfield Road, to multitenant use and rent out its gym for CYO basketball and volleyball teams, as well as the football stadium for high school teams. He also plans to add as many as five soccer fields for similar groups. Long term, Cannata may develop senior housing or other products on the site as he has 33 acres to work with, and just 24 will be devoted to sports use. Although real estate insiders privately joke he may have paid too much, Cannata can build the new sports business and bide his time for what’s next, for he purchased the property from an affiliate of the Catholic Diocese of Cleveland for a sweet price. Through St. Servan Centre LLC, Cannata on Aug. 26 paid just $400,000 for the 160,000-square-foot school building and its vast campus, according to computerized property records of the Cuyahoga County Fiscal Office. The property had languished since sagging enrollment prompted the closing of the school in 2013. The sale price fell well below the original asking price of $2.2 million, according to a listing from Newmark Grubb Knight Frank, which handled the sale for the diocese. Bedford city officials are weighing his proposal to convert the building to multitenant use. Cannata said he

“There seems to be a lot of demand for these types of uses. I played football against Chanel there when I was at St. Ignatius High School. There is also a lot of community support for the school and the alumni association remains active.” — Sam Cannata Sam Cannata plans to rent out the football stadium at the former St. Peter Chanel High School. (Stan Bullard)

primarily sees it as a home for an adult vocational tenant or charter schools. The stage may house community events and the school’s former fitness center could be used for team training, he said. “There seems to be a lot of demand for these types of uses,” Cannata said. “I played football against Chanel there when I was at St. Ignatius High School. There is also a lot of community support for the school

and the alumni association remains active.” To respect that history, Cannata plans to call the project the Firebird Athletic Center, recalling the nickname of Chanel’s sports teams. Michael Mallis, Bedford city manager, noted he graduated from Chanel along with his brother, his father and three uncles. “On a personal basis, I’m excited to see the building put back to use,"

he said. However, Mallis said the city is seeking more detail from Cannata about his plans for the school building before approving it. He said he believes putting the property back to active use will be a helpful first step in both short- and long-term redevelopment of the property. “Using the athletic fields is a great idea,” Mallis said. “It will bring a lot of young people and their families to Bed-

ford. It’s a great stepping-stone to greater redevelopment of the property.” Several other prospective buyers eyed the property and discussed it with the city, Mallis said, including one home builder he declined to name who weighed demolishing everything and building a community of new homes on it. However, Mallis said, Cannata’s plan was the only one to make it over the finish line.

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CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

‘Next person up’ applies to sports and business

Editorial

Better, but ... After much debate, a proposal to raise Cleveland’s minimum wage has squeezed its way through the political process and will be on the ballot next year. There’s a good chance voters will approve the hike in a special election on May 2, 2017. While the measure they’ll vote on is better than the one initially proposed, it’s still flawed, and one we cannot support. A group called Raise Up Cleveland, with the backing of the Service Employees International Union, initially sought to raise the minimum wage to $15 per hour from the current statewide minimum of $8.10. That proposal was rejected by Cleveland City Council and city leaders, who were rightly worried about the economic impact of an immediate 85% hike in the minimum wage. To the credit of all involved in the process, SEIU submitted a revised proposal that has become the one Clevelanders will vote on next May. It would raise the minimum wage to $12 per hour, starting Jan. 1, 2018, if approved, followed by $1 increases for the following three years to get to the $15 level. The phased-in road to a $15 minimum wage is obviously better than the shock to the system that was the original proposal. But we continue to believe that a big hike in Cleveland without a corresponding increase statewide would put the city at a competitive disadvantage and drive at least some companies and lower-wage jobs to neighboring communities. A better path is one outlined by the nonprofit Policy Matters Ohio, a think tank supported by foundations, community organizations and unions. In a report, “Still struggling: State of Working Ohio 2016,” issued earlier this month, it outlined how “tepid job growth, low wages and disparities” have hampered working families and made this recommendation: “Ohio should raise its state minimum wage to $12 by 2021 and to $15 by 2025.” Amy Hanauer, the report’s lead author and executive director of Policy Matters, told Crain’s government reporter Jay Miller that the recommendation was pegged at just under 60% of the median wage in the state.

A measured increase along the lines outlined by Policy Matters, applied statewide, would help all lower-wage workers and would be manageable for businesses. The proposal that will be before Cleveland voters does neither.

High praise

Earlier this summer, with little to no fanfare, Gov. John Kasich signed a measure that legalized medical marijuana. The bill’s swift passage — with support from both parties — and ultimate approval by the Republican governor demonstrates how quickly attitudes have changed toward marijuana. And now that its use for medicinal purposes is legal in Ohio, regulatory bodies and other groups are taking a closer look at how it can impact businesses of all kinds. Just recently, the Ohio Supreme Court, which sets rules for lawyer behavior, acknowledged that it can be difficult to discern whether attorneys can, or even should, provide legal services to enterprises supporting the marijuana industry. After soliciting input from the public and reviewing the current law, the court tweaked its rules to allow lawyers to work with clients involved in the legal marijuana industry. The court’s swift approach has been thoughtful. We’re hopeful other industries and the professional organizations that establish their respective ethical guidelines take a similar approach. Last year, Ohio voters soundly rejected Issue 3, which would have given 10 investors the exclusive right to grow and sell marijuana in the state for medical and recreational use. We argued at the time that legalization should only be done after a thorough discussion of what’s best for the state and its residents, perhaps first by legalizing it for medical purposes. And now that medical marijuana is the law of the land, we’re still encouraged that Ohio’s thoughtful approach to the marijuana issue hasn’t gone up in smoke.

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We’ve come a long way, Cleveland sports fans. Sure, we’ve got some well-deserved swagger thanks to the Cleveland Cavaliers. Yes, it feels so good after all these years to bask in a championship glow. Hard to believe it’s been three months since LeBron James and his teammates hoisted the Larry O’Brien trophy after their unforgetable comeback against the Golden State Warriors. Admit it. You could actually imagine the Tribe winning the World Series and the Browns winning the Super ... O.K., let’s not get carried away. Let’s say you could imagine the Browns winning as much as they lose. And then, the “most Cleveland thing” happened. Elizabeth On Sept. 17, a line drive nailed Carlos McIntyre Carrasco, breaking his hand and knocking one of the Cleveland Indians’ top pitchers out for the rest of 2016. Count the lingering injury to pitcher Danny Salazar, and the Indians are facing the prospect of making a World Series run without two of their top three starters. Oh, and just when their catcher, Yan Gomes, worked his way back from a shoulder injury, his season ended when he broke his wrist during a rehab start in Akron. The day after Carrasco’s freak injury, Cleveland Browns quarterback Josh McCown — filling in for injured starter Robert Griffin III (who was knocked out of the season opener) — took a beating against the Baltimore Ravens. McCown’s shoulder injury forced the Browns to tap rookie Cody Kessler to make the start under center against the Miami Dolphins. The injury reports caused many a Cleveland sports fan, and journalists, to fall back on the thinking we know best: It’s over. Wait until next year. But it’s not over. And even if the ultimate success comes “next year,” preparation for the unexpected, and the ability to adapt, is key for all organizations, whether sports franchises, law firms, Fortune 500 companies or small businesses. A Yiddish proverb goes like this: “Man plans; God laughs.” Which means things seldom go according to plan. Injuries have beset the Indians all season. All-Star outfielder Michael Brantley has only played 11 games in 2016, and Gomes’ absence has hurt, too. The Browns’ woes seem like a bad sitcom script. Now two star rookies have broken hands, too. But the difference is the setting of expectations from the front office and the coaching staff. Yes, the Browns will struggle in the short-term, but can they overcome? The organization appears to be thinking long-term for a change. The “next person up” attitude displayed by leaders of both teams, Indians manager Terry Francona and Browns head coach Hue Jackson, offers a fine example for any manager or CEO. Stick to the plan. Prepare the bench. Execute with confidence. Don’t panic. Yes, it may mean the success you’d hoped for isn’t coming as fast as you expected. But if the culture is right, the team motivated, and the process sound, success will come. The Cavs offer a fine example. In the 2014-15 season, they expected big things. Kevin Love went down in the first playoff series. Kyrie Irving was hobbled. The team stayed the course but did not win. A year later, despite a coaching change and a huge NBA Finals deficit, the Cavs prevailed. The next lesson comes as October dawns. Cleveland Indians, World Series champions. Why not?

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

CRAIN’S CLEVELAND BUSINESS

Web Talk Re: Cleveland’s hotel market It's sort of clear we're overbuilding on hotels. Once the county got involved in the market — hinting that private investors had only so much appetite — we should have been willing to see the reality. Instead, we're too quick to feel good about ourselves and feel good about Destination Cleveland. While loving our city is great, being blind by that love is dangerous. — Growler

Re: New era for City Club Cleveland needs to have the courage to retire or merge the City Club in with another organization. It's fighting desperately to be relevant, and there's little to show for it. Attendance at non-high profile programs is abysmal and usually draws the audience who is uniquely interested in the topic at hand. The majority of the community has no idea who City Club is and gains no benefits from its existence. Bye bye, City Club. — Larry Larry, thanks for your feedback. I'm not sure if you've been to any of our programs recently, but if you'd like to join us, we'd welcome you as my guest. I'm pretty easy to find online at cityclub.org, if you want to get in touch. — Dan Moulthrop, CEO, The City Club

Re: Revived Public Square Now we just need to open it back up to buses. Having all those people (60,000 rides a day) delayed is bad for business. — JMAL2123

Re: Ford, Mexico and Trump Ford, which recently announced it would move North American small-car production to Mexico, had the option of doing so in the United States or Mexico. Not saying I agree with this, but the point is, why didn’t the company build that plant in the U.S.? Who chose Mexico? That is what Ford should respond to. No one is saying they are cutting jobs overall, but why not add the jobs in the U.S. vs. adding the jobs in Mexico? Obviously readers of Crain’s know this, but the sound bite from Trump connects stronger with the public. — 165854

Re: Indians vs. Paul Hoynes The man is doing his job and stated an opinion, not a fact. For people to get upset is their right, but it’s a waste of time. … We live in this society where words hurt feelings, people get participation trophies and people feel entitled to something they never earned. These are professional athletes getting paid millions of dollars to do just that "play a game.” A part of their profession is to be criticized just as much as they are praised. — Jon Oswick

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Personal View

Our debt addiction continues unabated By DENNIS G. TEREZ

Our global economy is addicted to debt. The addiction is so bad that the drug pushers (savers and investors) are willing to pay the addict (governments) to use the drug. That’s really what negative interest rates are like. Depositors are paying a bank to hold their money rather than the other way around. Negative interest rates are catching hold. Early last year, about $7 trillion of government debt in the Eurozone, Switzerland and Japan was tied up in negative yields. That amount last year was already more than a third the size of the U.S. national debt. And the number keeps growing. The addiction to debt is of epidemic proportions. Since our last global financial crisis in 2008, private and public debt in the world’s leading economies has increased to more than $200 trillion, or about 300% of the world’s gross domestic product. In other words, take the value of the world’s goods and services, triple it, and you would only break even. That’s a lot of debt. Not surprising, ominous signs are growing in both our domestic and worldwide economies that trouble is on the horizon. Crashes in our economy are nothing new, of course. In 2009, right after the last worldwide crash, Carmen Reinhart and Kenneth Rogoff reminded us in their study titled “This Time Is Different: Eight Centuries of Financial Folly” that defaults, crashes and exorbitant debt levels are part of our human history. They also reminded us not to ignore the past, because this time will not be different. The history of financial folly was relevant just this past week when Federal Reserve Board Chair Janet Yellen “tipped off” the world about her desire to see higher interest rates in our country. For almost a decade, the Fed has been tipping us off about that SEE DEBT, PAGE 12

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Letters to the Editor Put the kids first J.B. Silvers made an informative assessment of the history and functioning of Obamacare (“What’s ailing the ACA: Insurers or Congress?” Sept. 12). Then he finished the article with, “This should be the debate — whether we want to provide access to insurance for all — rather than knee-jerk political responses.” That seems to me to be an odd conclusion since the Republicans have opposed Medicare, Medicaid and now Obamacare, and its repeal is trumpeted in its platform this year. What bothers me is the disparaging term “knee-jerk”. The parties have considered differences in philosophy. I don’t see anything knee-jerk about it. The American people get to decide which philosophy rules. As a pediatrician, I know that U.S. children have the worst health now of any developed country. If their families lose health insurance, as the Republicans desire, the children will surely suffer more. I think Silvers revealed his principles in that article, and I’m disappointed. Karl W. Hess, M.D. Shaker Heights

In praise of Akron-Canton I was concerned to read the Sept. 22 article about Allegiant Air moving its departing flights from the Akron-Canton Airport to Cleveland Hopkins International Airport. While I have never flown Allegiant Air and certainly recognize that they need to do what’s best for their business, the Akron-Canton Airport is an underappreciated regional resource to people in Greater Cleveland. We have found that even living in Cleveland Heights, flying out of Akron-Canton is faster from our home to the gate, and much less stressful from parking to check-in through security. There is a large availability of flights, and ticket prices are competitive and sometimes less expensive. I would encourage fellow Clevelanders who have not flown from CAK to check it out — you will be pleasantly surprised about the experience. Daniel S. Blain Cleveland Heights

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PA G E 12

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MVP Plastics Inc., a Tier 2 automotive molder in Middlefield, has purchased Integrity Design & Manufacturing Inc., a small Michigan mechanical design house that designs and builds automation, work holding fixtures, machinery and tooling. MVP president and CEO Darrell McNair plans to add capability at the newly acquired company for product design. Integrity currently has just five employees, but that number will grow as McNair adds the technical center, a project that he has long wanted to launch as a way to get involved in product development earlier. “The product design piece is going to be important,” he said. “We’ve always done engineering in-house, but this takes it to a totally different level. This is going to be over the course of a two-year period here.” MVP bought Integrity Design on

DEBT CONTINUED FROM PAGE 11 rather public secret. But if her comments about our country’s debt levels (105.41% of GDP) and low levels of economic growth (not much more than 1% this year) haven’t caught your attention, then perhaps a short math exercise will. Numbers don’t lie. A simple equation shows the relationship among the various factors at play here. The percentage growth (or reduction) in a country’s debt equals the national deficit as a percentage of GDP plus the result of multiplying the cost of borrowing by the national debt as a percentage of GDP plus the percentage of growth in GDP. USDebtclock.org will help you find the numbers for our equation. Our national deficit is about 3.17% of our GDP, the cost of borrowing is a conservative 1.65%, which is the rate of

Sept. 8. McNair declined to disclose terms of the transaction. It’s not uncommon for custom injection molders to beef up product design through acquisition, especially in automotive. But McNair said this also is a major diversification move for MVP Plastics, since the company in Oxford, Mich., serves a wide range of customers, including web handling equipment and special machines. Integrity also can do 3-D modeling and redraw blueprints using Solidworks and AutoCAD, for building a tool or a machine. McNair said Integrity Design will help MVP’s molding factories in Middlefield and Brownsville, Texas, with expertise in automation, end-of-arm tooling, chucks, fixtures and other areas. But Integrity — which has worked with General Motors Co., Fiat Chrysler and robot makers ABB and Kuka — also can work for MVP’s customers in automotive, including the Tier 1s

and automakers, he said. The move should set MVP apart, McNair said. “It’s an interesting diversification play that build upon our existing customer base,” he said. “It’s another service that we can offer our existing customers.” Integrity Design will continue to serve its other, non-automotive customers, and that could give MVP some business in new markets, he said. “What it also does is become a pillar to develop a full-blown tech center for MVP,” McNair said of the acquisition. He plans to add 3-D printing at Integrity. MVP also will locate its project managers and program management staff at the Michigan operation, to be closer to Detroit.

10-year Treasury, and our national debt is about 105.41% of GDP. Let me simplify the message. Under this equation, the only way we can stop our already huge national debt from growing even larger is by growing our national economy by about 4.9% annually. That level of growth is unattainable in the foreseeable future. Centuries of government defaults teach us that you cannot grow your way out of debt, especially in a lowgrowth world economy such as ours. You might say, well, if we can just become more productive, surely our GDP will grow faster than an anemic 1%. That isn’t going to happen, either. The U.S. Department of Commerce started September by telling us that nonfarm business sector labor productivity decreased at a 0.6% annual rate during the second quarter of 2016. Since 2011, our productivity growth has averaged 0.4% annually. Our equation shows us that the only other factor that could help us

bring down our debt is a decrease in our national deficit — the measure of when our government spends beyond its means. It’s a safe bet that’s not going to happen either. History shows us that governments start spending more recklessly as their growth rates begin to decrease. If you cannot grow your way out of a public debt problem in slow-growth economies, you certainly cannot buy your way out either. Both party nominees for the most powerful elected office in the land make promises about how they will increase benefits and still cut taxes once in office. It would do us all better if they’d simply propose a solution around our simple equation.

Bill Bregar is a senior staff reporter with Plastics News, a sister publication of Crain's Cleveland Business.

Terez has been practicing law in Northeast Ohio in both the private and public sectors for three decades, and is currently a student in the Executive MBA program at Case Western University’s Weatherhead School of Management.

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Round 2 awaits state in Medicaid fee fight By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Although the feds rejected a plan from the state of Ohio that would have required Medicaid beneficiaries pay monthly fees into a health savings account, State Rep. Jim Butler, a Republican from the Dayton area, said he plans to try again during the next budget cycle to compel Medicaid patients to pay. Butler said this month he will reintroduce a proposal that still requires some type of financial contribution to a savings account — some sort of “skin-in-the-game requirement.” “We’ll come up with an even better plan that we will submit I hope during the budget next year,” he said. Dubbed the “Healthy Ohio Program,” the plan denied this month would have required eligible Medicaid beneficiaries to make monthly contributions into a health savings account equal to 2% of their income, or $8.25 per month, whichever is less. The maximum annual contribution would have been $99. The state would contribute $1,000. Through last year’s state budget bill, state lawmakers directed administrators to submit a waiver application to the feds for the all-clear to implement the program. Supporters of the plan said the idea was to encourage Medicaid recipients to take ownership in their health care and help smooth any future transition to commercial insurance. Opponents voiced concerns about otherwise eligible people losing coverage, the financial burden of the monthly fees, curtailed access and the financial impact on providers, who could be left holding the bag when patients who couldn’t pay their premiums and lost coverage would enter their doors. The Centers for Medicare and Medicaid Services this month shot down the plan, citing concerns about the state’s request to charge premiums, regardless of income. “CMS is concerned that these premiums would undermine access to coverage and the affordability of care, and do not support the objectives of the Medicaid program,” Andrew M. Slavitt, acting administrator of CMS, wrote in a Sept. 9 letter to John McCarthy, Ohio’s Medicaid director. Slavitt also pointed out that Ohio’s plan would disenroll from the program those who failed to make the required payment within 60 days and exclude them until they paid back that debt — a policy CMS hasn’t authorized in any state, he wrote. “Our concerns are corroborated by the data you submitted with your application that estimates that these policies would lead to over 125,000 people losing coverage each year,” Slavitt wrote. Bill Ryan, president and CEO of the Center for Health Affairs and a former state Medicaid official, said he expected CMS to deny the request. “I think everybody who understands how these waivers work was pretty clear right from the beginning that it was unlikely that this would be approved,” he said. Greg Lawson, senior policy analyst with the Buckeye Institute, a free market-oriented think tank based in Columbus, also said it wasn’t a surprise given that the feds historically haven’t approved waivers with some of the features in the Ohio plan, but it came as a disappointment.

“We think this was an opportunity for us to really as a state start to do state-specific reforms to Medicaid that would improve health care outcomes, improve the ability of people to get the right incentives to get back into the labor force and work,” Lawson said. Tracy Carter, MetroHealth’s senior director of federal and state affairs, said the feds made the right decision. By MetroHealth’s analysis, the plan would have reached at least 55,000 of the patients who seek care there — a key factor in the system’s opposition to the plan. “We spoke up on this issue because we wanted to protect those patients,” she said. “There were many layers to the proposal that just didn’t make sense from a communi-

ty health and a health care provider perspective.” The Healthy Ohio Program also had the potential to hit MetroHealth’s finances with added administrative complexity and the threat of higher uncompensated care and uninsured rates if patients were disenrolled for not paying their monthly fees. While many are celebrating the CMS decision as a victory, Ryan said they should be “a little bit circumspect” of what the state Legislature’s next step may be. “The Legislature hasn’t gotten any less conservative in Ohio and still very much dislikes the Medicaid program in general,” Ryan said. While there’s no formal appeal process, Ryan said the state could re-

vise its request, the Legislature could direct the administration to submit a new request or “quite frankly, they could just simply say resubmit and assume that they can eventually pound a square peg into a round hole.” Butler said he is certainly open to other solutions, but for now, believes the Healthy Ohio Program remains the best plan to address the unsustainable rate at which health care costs are rising. He points to a similar program in Indiana — after which his version was patterned — that found participants seeking preventative care at a higher rate than the commercial population. Both plans included incentives for people to be mindful of their spend-

ing, Butler said. If at the end of the year participants have money remaining in their health savings account — and they sought primary care that year — that money can roll over and be applied to the following year’s monthly fees. Ohio’s plan built upon that with its bridge account, which allows people to take money in their HSA to their individual or employerbased insurance if they’re transitioning out of Medicaid. There may be some technical changes in the bill he plans to reintroduce, but he intends to require a financial contribution to a savings account. “The plan is to have incentives, and incentives are generated by having skin in the game,” Butler said. “That’s what motivates behavior.”

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TAX LIENS

LIENS FILED

The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.

Mobil Martin Inc. 1279 W. 73rd St. Date filed: Aug. 4, 2016 Type: Employer’s withholding Amount: $118,406 Dwight E. Scott DPM Inc. 6001 Woodland Ave. Suite 2345 Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment, failure to file complete return Amount: $80,943 1701 E. 12th LLC/Scorchers Downtown Cleveland 1701 E. 12th St., Cleveland Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $54,033 JHG Inc. 1337 W. 10th St., Cleveland Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $33,187 I Heart Waffles LLC 16802 Chagrin Blvd., Shaker Heights Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $24,176 Gateway Healthcare Services LLC 5000 Euclid Ave., Suite 201, Cleveland Date filed: Aug. 4, 2016 Type: Unemployment Amount: $18,776 Howard Pollock Co. LPA 5900 Harper Road, Suite 107, Solon Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $15,370

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Head Builders Inc. 15293 Sandalhaven Drive Date filed: Aug. 4, 2016 Type: Employer’s withholding Amount: $13,991

Dunecraft Inc. PO Box 808, Chagrin Falls Date filed: Aug. 4 and 11, 2016 Type: Employer’s withholding, unemployment Amount: $114,072 Ohio Mills Corp./Ohio Mill Supply 1719 E. 39th St. Date filed: Aug. 11, 2016 Type: Corporate income Amount: $54,398 Yelsky & Lonardo LPP 75 Public Square, Suite 800 Date filed: Aug. 4 and 11, 2016 Type: Employer’s withholding, unemployment, partnership Amount: $39,266

MRSO Elite LLC/Elite Answering Services 20800 Center Ridge Road, Suite 205, Rocky River Date filed: Aug. 4, 2016 Type: Employer’s withholding Amount: $9,689 J & S Landscaping Inc. 1370 Ontario St., Suite 450, Cleveland Date filed: Aug. 4, 2016 Type: Employer’s withholding Amount: $9,474 Little Miracles Child Care and Learning Center Inc. 22683 Euclid Ave. Date filed: Aug. 11, 2016 Type: Employer’s withholding Amount: $8,408

Flexible Staffing Corp. 6521 Lorain Ave., Cleveland Date filed: Aug. 11, 2016 Type: Employer’s withholding, corporate income Amount: $30,699

Transnational Property Investments LLC 3473 Fairmount Blvd., Cleveland Date filed: Aug. 11, 2016 Type: Employer’s withholding Amount: $5,730

Pinpoint Learning LLC 2530 Superior Ave., Suite 303, Cleveland Date filed: Aug. 11, 2016 Type: Employer’s withholding, unemployment Amount: $27,086

AP Ventures LLC 2161 Murray Hill Road, Cleveland Date filed: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $5,402

Joseph H. Graeser Consulting Inc./ Flexible Resourcing PO Box 26172 Fairview Park Date filed: Aug. 11, 2016 Type: Employer’s withholding Amount: $24,591 Quick Employment LLC PO Box 93227, Cleveland Date filed: Aug. 11, 2016 Type: Employer’s withholding Amount: $15,468 Salon Styling Concepts Ltd. 6573 Cochran Road, Suite A, Solon Date filed: Aug. 11, 2016 Type: Employer’s withholding, corporate income Amount: $10,511

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LIENS RELEASED Mobil Martin Inc. 1279 W. 73rd St. Date filed: Aug. 19, 2014 Date released: Aug. 4, 2016 Type: Employer’s withholding, unemployment Amount: $84,727 Family for Life Foundation/Little Scholars 3639 Lee Road, Cleveland Date filed: May 16, 2014 Date released: Aug. 4, 2016 Type: Employer’s withholding Amount: $36,668 Paul Holdings Ltd. 559 Prospect St., Berea Date filed: Feb. 27, 2013 Date released: July 21, 2016 Type: Employer’s withholding Amount: $11,043

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U.S. 2025 auto fuel-economy target gets supplier support

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The United States should maintain President Barack Obamaâ€™s 2025 automotive fuel-economy target because the goal spurs innovation and job growth, an executive for vehicle-parts maker Eaton Corp. said, echoing the findings of a survey of parts suppliers. By setting a long-term target similar to those of the European Union, Japan and China, Obama is providing the auto industry with a stable market big enough to support sustained innovation, said Mihai Dorobantu, director of technology planning and government affairs for Eatonâ€™s Vehicle Group. â€œInstead of being driven by changing oil prices, our investments are now driven by the timeline given in these regulations,â€? said Dorobantu, whose Dublin, Ireland-based company supplies automakers with engine control systems and air conditioners. Obama wants average U.S. auto fuel economy to rise from 35.5 miles per gallon this year to a projected 50.8 mpg in 2025. His successor will make a preliminary decision next year on whether to stick with that goal. A recent technical assessment report by the Environmental Protection Agency and other departments concluded that automakers can meet the target mainly with existing technologies such as turbochargers. â€œSuppliers are quite optimistic they

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A Ford C-MAX plug-in hybrid vehicle comes off the assembly line at the Michigan Assembly Plant in Detroit. (Getty Images)

can help the automakers achieve these targets,â€? Dorobantu said. Eaton, which has its North American base in Beachwood, also makes components for aircraft manufacturers, miners and oil and gas drillers. Dorobantuâ€™s comments reflect the sentiments from a survey of 23 suppliers big enough to sell parts directly to the automakers, released earlier this month and funded by Calstart, an organization that includes technology providers, fleet operators, vehicle makers and component manufacturers and pushes for cleaner, more efficient transportation systems. Of the suppliers surveyed, including Eaton, about 70% said the United States shouldnâ€™t change its 2025 goal,

said John Boesel, president of Pasadena, Calif.-based Calstart. About 60% of respondents said the target is spurring job growth. The supplier outlook on the fuel economy target is more optimistic than that of Mitch Bainwol, president of the Alliance of Automobile Manufacturers, a Washington-based trade group whose members include General Motors Co. and Toyota Motor Corp. At an industry conference in August, Bainwol said the regulations could make new cars too expensive. Suppliers may be more inclined than automakers to make risky investments in technology, because thatâ€™s their only way to survive, Boesel said.

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Westlake Reed Leskosky, region’s largest architecture firm, partners with DLR Group “From the WRL perspective, there are two primary drivers for this decision: leadership and ownership transition, and added scale to leverage our expertise and enhance our competitive position.”

By STAN BULLARD sbullard@crain.com @CrainRltywriter

Westlake Reed Leskosky, Northeast Ohio’s largest locally owned architecture and engineering firm, has joined DLR Group, a national architecture firm whose CEO is based in Minneapolis. Paul Westlake, managing principal of Westlake Reed, said in a news release on Sept. 20 that the combination will provide Westlake Reed’s staff with ownership opportunities through DLR Group’s structure as an ESOP, or employee stock ownership program and ensures what he called the Cleveland firm’s design legacy. “DLR Group is the ideal partner, an integrated design firm committed to design excellence and environmental stewardship,” Westlake said. Griff Davenport, CEO of DLR Group, said in the release, “It’s a case of right creative partner, right place, and right time. This increases the geographic reach of both firms and creates a design firm with demonstrated market-leading practices.” Those practice areas are in the cultural and performing arts, energy services, health care, hospitality, justice, K-12 education, preservation, retail and mixed-use, sports, and the workplace. Andy Ernsting, DLR brand communications manager, confirmed in a phone interview that the combination is an acquisition. He declined to disclose terms as both firms are privately held. The announcement came as a surprise as Westlake Reed had minted three new principals in February — typically a sign of succession planning in architecture firms.

— Paul Westlake, managing principal

DLR Group CEO Griff Davenport (left) and Westlake Reed Leskosky managing principal Paul Westlake. (Contributed photo)

In a question-and-answer session posted on websites of both firms, Westlake amplified the reasons for merging the practices. “From the WRL perspective,” Westlake said, “there are two primary drivers for this decision: leadership and ownership transition, and added scale to leverage our expertise and enhance our competitive position.” DLR brings to Westlake Reed a roster of clients such as Boeing, Google, Hyatt, the Mall of America and a massive practice in K-12 education. Westlake Reed adds to the roster clients well known to Clevelanders familiar with the firm, such as the Cleveland Clinic, Pro Football Hall of Fame, General Services Administra-

tion, the Smithsonian Institution and U.S. State Department. The news release stated that firms have been named the nation’s top design firm by Architect, the official publication of the American Institute of Architects. On the magazine’s annual Top 50 list for 2016, Westlake Reed ranks second and DLR Group 23rd. DLR has 850 design principals and Westlake Reed 160, according to Ernsting. WRL offices in Cleveland, Charlotte and New York will operate as DLR Group|Westlake Reed Leskosky. In Phoenix, where both firms have a strong brand presence within differing client types, it also will operate as DLR Group|Westlake Reed Leskosky.

In Washington, D.C., the existing DLR Group|Sorg office will join with WRL’s existing staff to operate as DLR Group|Sorg|Westlake Reed Leskosky. In China, WRL’s Shanghai office will merge into DLR Group’s Shanghai office and the combined firm will serve clients throughout Asia. In Cleveland, Westlake will lead the transition to DLR Group|Westlake Reed Leskosky and will be appointed to the DLR Group board of directors. He will be a senior principal and lead the combined firm’s Culture and Performing Arts Studio. Phil LiBassi, a long-term principal of Westlake Reed, will assume the role of Global Healthcare Leader and direct the Healthcare practice of the combined firm. Matt Janiak, a Westlake Reed principal and senior project director, became Northeast Region leader for the firm, leading operations for the Cleveland and New York offices.

Paul Siemborski, a Westlake Reed principal based in Cleveland, will lead business development and marketing for the Northeast Region. Tom Gallagher, a Westlake Reed principal, will continue to direct the DLR Group|Westlake Reed Leskosky New York office and lead a studio specializing in lighting and museum design. Gallagher also will continue to lead projects in Asia in collaboration with DLR Group design professionals in Shanghai. Together, DLR Group and WRL will serve clients from 26 locations: Charlotte; Chicago; Cleveland; Colorado Springs; Denver; Des Moines; Dubai; Honolulu; Houston; Kansas City; Las Vegas; Lincoln, Neb.; Los Angeles; Minneapolis; Nairobi; New York; Omaha; Orlando; Phoenix; Portland, Ore.; Riverside, Calif.; Sacramento; Seattle; Shanghai; Tucson, Ariz.; and Washington, D.C. Westlake Reed is in its 112th year of continuous practice and singular among Northeast Ohio design firms for its continued operations through several generations. It was founded by Abram Garfield, son of President James A. Garfield. DLR Group traces its origin to a firm founded 50 years ago in Omaha. Ernsting said the company has dispersed ownership with its CEO, chief financial officer and chief operating officer working from separate locations. The name will become DLR Group for all the firm’s locations if local markets accept the combination, Ernsting said. Westlake Reed has topped the Crain’s Cleveland Business list of largest architectural firms for many years. The ranking is based on the number of local registered architects.

CRAIN’S CLEVELAND BUSINESS

S E P T E M B E R 2 6 - O C T O B E R 2 , 2 016

SCHULMAN CONTINUED FROM PAGE 1 “I really have to look at the numbers, and I have to believe the numbers … I want a third party to take a look at those numbers, too, because we’ve lost credibility. We can come out again with numbers that I believe in, from my people, who are good people. But it would be really good to have a respectable third party also say, ‘Yes, these numbers make sense,’ ” Gingo said. Schulman lost credibility last year when it twice surprised the market by adjusting its earnings guidance downward — for a total of 70 cents per share. The second time that happened, in August when the company reduced its annual earnings estimate from $2.45 to $1.95 per share, the company’s stock price plunged more than 30% to a little more than $21 per share. That was the reason, Gingo said, the company’s board brought him in to replace then-CEO Bernard Rzepka. Gingo is also board chairman. At 71, Gingo was planning to be retired by now, but said he’s fully prepared to fulfill his two-year contract as CEO, and a third year if the company opts for it. And he has credibility with analysts and investors, many of whom credit him with turning Schulman around during his previous tenure as CEO, from 2008 to 2014. But even Gingo concedes the future is not entirely in his control. Schulman’s stock is trading on the cheap. After trading at a record high of more than $40 per share in early 2015, its stock price has since dropped to below $30 and stayed there, while the market as a whole has gone up. Gingo has some headwinds to fight. With slow growth in some of its core markets, significant operational challenges and $900 million in debt to pay off, Schulman has a long, steep

In August, A. Schulman Inc. reduced its annual earnings estimate from $2.45 to $1.95 per share, causing its stock price to drop more than 30% and forcing a change in leadership. (Contributed photo)

road ahead of it — and the company, its investors and CEO might not have the horsepower, patience or stamina to climb it, analysts say. A sale of Schulman might provide the quickest and best way to reap a return for investors, especially if the company can address some immediate issues to increase its potential price. “I’ve always thought of Schulman as a very amenable takeout candidate,” said analyst Dmitry Silversteyn, who follows the company for Independence-based Longbow Research. Silversteyn said other materials companies that are currently strong, such as Ferro Corp., could have an interest in purchasing Schulman, as might private equity investors. “This could be a private equity buy. It could be a Chinse or a Latin American company looking to get a footprint in America and some credibility with customers. (Schulman’s) relationship with Audi, BMW and others is very attractive to other players … So, yeah, I think they could be an attractive acquisition target,” said Silversteyn.

Analyst Kevin Hocevar, of Cleveland-based Northcoast Research, agreed. In suggesting that investors buy Schulman stock in an Aug. 26 report, Hocevar wrote: ”For starters we believe there is a motivated Gingo taking back the reigns (sic) at (Schulman) and his business plan review could result in a lot of different things including cost savings plans … and divestitures of part of (or potentially all of ) SHLM.” Hocevar thinks there’s likely less interest from potential strategic corporate buyers than there would be from private equity firms. “I believe private equity would be the most likely buyer at this point,” Hocevar said in email correspondence with Crain’s. “I am not sure there is a strong candidate from a strategic buyer standpoint. PolyOne was cited for years as being the likely candidate to acquire (Schulman), however I don’t think that’s likely anymore. Maybe many years ago this would have been possible, but (PolyOne and Schulman) have gone in different directions.”

It was not long ago that Schulman was a buyer of companies. In 2013, it paid $800 million for Citadel Plastics, an Indiana firm that was a roll-up of other plastic companies put together by investor groups. It was the largest acquisition in Schulman’s history and brought $550 million in new annual sales, effectively doubling Schulman’s size. But that deal quickly generated severe buyer’s remorse. Schulman said it found fraud in terms of how Citadel’s financial condition was represented before the purchase. Schulman also has had unexpected troubles with some of the Citadel plants it took over — especially those working with recycled plastics, where margins were already thin and there was no room for errors. Schulman has filed suit against Citadel’s sellers, California-based Huntsman Gay Capital Partners and the Boston-based firm Charlesbank Capital Parners. It claims the sellers, along with some former executives, committed fraud in selling Citadel. But what that lawsuit will do for

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Schulman remains to be seen. Schulman could get some repayment, or even punitive damages, but it’s unlikely the deal could be fully undone. “That’s just not practical,” Gingo said. And such lawsuits can take years to go through the courts and appeals processes. In the meantime, Schulman has to figure out how to work with the troubled Citadel plants it purchased, while also dealing with a massive debt load that resulted from the acquisition. Couple that with slow global economic growth for Schulman’s plastics, and Gingo’s challenge is significant, analysts said. But, they add, it is not insurmountable, and Gingo might be the right person for the job. “Can this be turned around? I think so,” said Silversteyn. “I’m intrigued by some of the things Joe has said in print, particularly about looking at their end markets.” That might mean selling some of, but not the entire, company, he said. Gingo said partial divestitures are an option he’s already considering. “We’re going to be looking at capacity and at our business model and whether all our businesses fit. If they don’t, I may be looking at divestitures, but of individual business units,” Gingo said. “I want to improve our performance. That’s my goal. My goal is not to sell the company … If someone walks in with an offer, that’s one thing, but that’s not the same as looking for a buyer.” One person who is definitely rooting for Gingo to succeed is William Roth, the mayor of Fairlawn. “They’re the No. 1 taxpayer right now. That changes by the year, but they’re always in the top five. I’ve been mayor for 21 years, and they’ve always been in the top five,” Roth said. “They’re a good firm. I know they’ve had a blip in the radar … but, obviously, we hope they prosper. They’ve been a good corporate citizen, and they’re good people.”

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Region’s jobs drop in August, but increase year-over-year

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The monthly tally of Northeast Ohio private payrolls in August continued on its roller coaster of up one month and down the next, with the Ahola Crain’s Employment (ACE) Report showing a decrease of 3,626 jobs from July, a 0.31% decline. Longer term, though, employment in the seven-county AkronCleveland metro area was 8,340 jobs higher in August than a year ago, a 0.71% increase. “The economy is in its eighth year of economic recovery and still remains in its expansion phase of a payroll cycle,” reported Jack Kleinhenz, the Cleveland Heights economist who created the ACE model. “It has been on a slow path of economic growth, but the labor market continues to maintain momentum.” Statewide, nonagricultural wage and salary employment grew by 77,000 jobs year-over-year, a 1.35% increase, based on a survey by the U.S. Bureau of Labor Statistics released last Tuesday, Sept. 20 by the Ohio Department of Jobs and Family Services. Employment in all 88 Ohio counties decreased by 2,000 positions, from 5,505,400 in July to 5,503,400 in August. Analyzing the state data, the nonprofit Policy Matters Ohio think tank, which is supported by foundations, community organizations and unions, reported that Ohio’s 12month job growth rate of 1.35% continues to trail the national average of 1.7%, but it represents an improvement over the pace of job creation since the official start of the last national recession in 2007. “Ohio needs many more months of five-figure employment growth

The ACE Report AHOLA. CRAIN’S. EMPLOYMENT Crain’s Cleveland Business has partnered with The Ahola Corp., a payroll and human capital management firm in Brecksville, and local economist Jack Kleinhenz to provide monthly data — and clarity — about a key factor in business decisionmaking: the size of Northeast Ohio’s workforce. Seasonally adjusted employment numbers, Northeast Ohio APRIL: 1,171,007 MAY: 1,176,132 JUNE: 1,174,496 JULY: 1,178,355 AUGUST: 1,174,729 1,155,000

1,160,000

1,165,000

to close the job gap, so (August’s) losses are disappointing,” said researcher Hannah Halbert in a press release. “However, the August loss is slight, and didn’t come close to wiping out recent gains. That’s an improvement from the earlier trend.” Although Northeast Ohio and the state posted job losses, Kleinhenz noted that the country posted a lessthan-expected gain of 151,000 jobs. CNBC reported that Wall Street economists were expecting the nonfarm payrolls report to show a gain of 180,000 in August. “This figure still remains above the required gain to keep the unemployment rate moving down on a slow, yet steady, pace,” Kleinhenz said. “It is important to note that as the economy gets closer to its full

1,170,000

1,175,000

employment — and we are getting close — finding workers increases in difficulty.” Kleinhenz cited Bureau of Labor Statistics data that show job openings “rose sharply in July, and the rate of openings was a record high. Meanwhile, the increase in hiring was not as great. Openings have grown faster than hires for nearly every month over the last year and a half.” Hirings differ from job gains since job gains are net of hirings, firings and employment lost from deaths. “All in all the data suggest that firms are having a challenging time filling positions but also indicating that workers are moving to jobs that better suit them and their efficiencies,” Kleinhenz reported. —Jay Miller

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Tobin Buckner

PA G E A -1

Technology

The art of the pitch: learning to sell your ideas. Page A-7

Customers help Kent Displays find new markets. Page A-2

AKRON BUSINESS

New focus United Way turns to core missions. Page A-3

For Szalay’s Farm, well-cultivated diversity is key to success Szalay’s Farm and Market’s co-owner Paula Szalay (center) sorts through the farm’s main crop: sweet corn. (Shane Wynn for Crain’s)

Sweet corn is king, but attracting visitors bolsters business By BETH THOMAS HERTZ clbfreelancer@crain.com

For many people, winter means cold and snow. For John and Paula Szalay, it means getting more than three hours of sleep a night and being able to have breakfast at home. The married couple, owners of Szalay’s Farm and Market, love summer and fall, with all the hustle and bustle they bring to their popular farm in the Cuyahoga Valley National Park in Peninsula. But the days are exhausting. They rise at 3 a.m., travel to Cleveland to buy the wide variety of fresh produce sold at the market. After unloading that, they start the day’s task of loading half a dozen trucks that take their signature sweet corn to about 60 area grocery stores, primarily Giant Eagles branches, throughout Northeast Ohio. The work of maintaining the farm and running the market goes well into the evening. The owners rarely get to sleep before midnight. They will keep up this pace until about the second week of November and resume in early April.

A tractor’s trailer provides unique seating as visitors snack and listen to music.

Although it’s a tough life, it’s in their blood. The farm was started in 1931 by John Szalay’s grandfather. He’s now the third generation to operate the business, along with Paula, and both of their children, Johnny and Georgia. Although the fifth generation is still quite young (the oldest of three grandchildren is 7), they are already learning how to operate a tractor and love the soil. Farmers are the biggest gamblers in the world, said Paula Szalay. They live and die by the weather. Too much rain or too much heat can devastate the crops. One bad night can ruin the harvest. This summer, the Szalays had to work double time to pick corn before it dried out from the heat. But picking it too soon is no better. “This has been a hard year for area farmers,” she said. With the annual corn yield always a moving target, the farm has diversified over the years to protect its bottom line. Its popular 3-acre corn maze opened in early September this year. Visitors pay $6 to navigate through this field, which Paula is proud to reinvent with a new theme SEE SZALAY’S, PAGE A-8

PA G E A -2

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AKRON

New markets open up for Kent Displays’ tablets

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Kent Displays is following the lead of what it calls the world’s largest product development team, and it’s taking the company to new markets with new devices tailored to serve them. More specifically, Kent Displays is going after sales to the education and health care industries and has begun developing new products for business and actively pursuing B2B sales — all based on cues it gets from a team of experts around the world. So, how does a company with only a few more than 90 employees have a large, international development team? By watching and listening to customers in more than 30 countries — customers who are constantly inventing new ways to use Kent’s products and often already networked in their own communities, said CEO Al Green. “We’re just formalizing what was already going on. If we focus on it, we can grow these areas more than they would with just organic growth,” Green said. Green’s company, based in its namesake city of Kent, hasn’t revolutionized its technology recently. At the core of each of its products is technology that is the same or similar as what’s used in its signature product, the Boogie Board e-writing tablet. The Boogie Board allows the user to write on it, pretty much like it was a normal sheet of paper, but then to erase everything on the page with the touch of a button. But Kent Displays is discovering that there are a lot more uses for such a device than even Green or others at the company ever imagined. First, came the health care field. About two years ago, Green was reading an article about how veterans suffer disproportionately from amyotrophic lateral sclerosis (ALS), or Lou Gehrig’s disease, when he noticed a photo of an affected vet with a Boogie Board. “This guy’s got a Boogie Board, and he’s saying how it changed his life,” Green recalled, still flashing with excitement at the memory. As it turns out, people afflicted with ALS lose their ability to speak before the disease affects other parts of their body, and a Boogie Board is the perfect tool for them to communicate quickly and easily in writing. That vet was far from the only person with ALS who discovered that, as Green quickly found out. “If you type in ‘Boogie Board’ and ‘ALS’ in Google, you’ll see that the first page is dominated by our product being used by people in the medical field, or dealing with ALS. I can’t tell you how many people have stopped me and said: ‘Wow, your product — my parent, spouse or whatever, they couldn’t speak or communicate, and then they got a Boogie Board and it changed everything,’ ” Green said.

Moving into B2B Now, Kent Displays has begun to actively market its products not only to ALS patients, but to the health care field in general. The company discovered that patients aren’t the only

CEO Al Green is leading Kent Displays into new markets. (Dan Shingler)

products. Kent Displays’ conference room has one already — a 65-inch wall-mounted Boogie Board that replaces the familiar white boards so many people have fallen asleep in front of. You can write on the large Boogie Board and erase it instantly, just like a smaller version, but you can also broadcast what’s on it to other computers or networks for broader presentations. Kent Displays continues to roll out new products, like the Jot 4.5, which allows children to trace what’s put beneath the screen. (Contributed photo)

ones who use its devices. With all of the privacy laws governing health care today, doctors and nurses have a need for something they can write on without leaving a permanent record. “Nurses use them a lot, for writing down quick pieces of information,” Green said. “ALS is an example of a much broader area in health care … the bigger picture is health care in general.” Then there’s the general business market, where customers have also shown Kent Displays how to access new areas, such as call centers. Kent Displays wasn’t yet targeting call centers, but over the past couple of years it noticed that phone banks that process everything from credit card orders to insurance claims were using a lot of its Boogie Boards. That’s because, Green said, call centers are governed by strict laws that do not allow them to record credit card numbers and other personal information that they deal with. They either have to use small white boards, which are messy and require special pens, or to have a shredder at each person’s station. Or, they could use a Boogie Board, which is what many have done. “Organically, we found that call centers all over the world just started using Boogie Boards. Japan started it, but now we are constantly fielding orders for 100 units, 200 units, for call centers all over the world,” said Green. All of this has Green and others at Kent Displays thinking that maybe the company can sell Boogie Boards as easily to professionals and other adults as it has to kids around the world, who already own, literally, millions of the devices, Green said. So Kent Displays is forming a new B2B unit, internally, which will focus on serving businesses through the same channels through which they now get office supplies. Along with that, come some new

Still time for play Kent Displays is not resting on its laurels with products for kids, either. This year, it introduced the Scribble N Play, which is a Boogie Board that allows users to write using a multicolor display. The company also began selling the Jot 4.5, which is a translucent Boogie Board that also allows kids to trace what’s put beneath the screen. Scribble N Play has gotten all of the press because it’s “sexy,” but Green said Jot 4.5 might be an important product aimed at the education market. It comes with flash cards, that can be inserted so that kids can trace letters, numbers and other things to learn how to write, he said. Such innovation is likely the key to Kent Display’s ongoing success, said John West, a trustee professor at Kent State University and former director of the school’s Liquid Crystal Institute, which gave birth to the technology behind the Boogie Board. While he doesn’t have a financial interest in the company, West said he’s a big backer, and believer, in what Kent Displays is doing. “They’ve been doing a hell of a job at it,” he said of the company’s recent innovation and marketing efforts. “ West said the company has likely found several new niches that will work well for them. And while Green wouldn’t say whether privately held Kent Displays has reached profitability, West thinks it either has or is well on its way. There are challenges, though, West said. The patents on the original Boogie Board “cholesteric liquid crystal display” technology have expired, he said, and other companies are looking to use it to compete with Kent Displays. But West thinks Green and the company will prevail, thanks to its pattern of innovation. “There are other companies looking at the cholesteric technology. The original patents have expired now. But I think Kent Displays has a significant lead on them and can stay ahead of the curve,” West said.

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United Way of Summit County going from donation ‘broker’ to change-maker By JUDY STRINGER clbfreelancer@crain.com

The United Way of Summit County has a problem. No, it’s not fundraising. Well, not exactly. Following a record-breaking campaign in 2014, which raised more than $12.7 million, the Akron-based agency set out to collect $13.5 million from donors last year. Whether it did or not president and CEO Jim Mullen will not say. And, he added, don’t expect him or his team to wheel out the giant thermometer this year or next. The emphasis on how much it can raise — rather than where that money goes — is part of the problem. For many years, the United Way of Summit County touted itself as place for community members to put their monetary donations, even promoting what is known as “designated donations,” or funds earmarked for specific nonprofits. “It was a philosophy we executed really well,” Mullen said. “Past staff and past volunteer leadership really felt that the most important thing was driving that top-line revenues number. One way to do that was to talk to people about their philan-

In June, the United Way of Summit County helped to construct a new playground at Suddieth Park in Akron’s North Hill neighborhood. (Contributed photo)

thropic goals related to the community and then have United Way be the ‘broker,’ so to speak.” Between 2009 and 2015, designated donations nearly doubled, which on the surface sounds great, but those donations aren’t always assigned to agencies driving change in

Discouraging numbers 52% 39% 26% Percentage of Akron children living in poverty.

Percentage of Summit County children are obese or overweight.

Percentage of Akron Public Schools high schoolers who do not graduate in four years.

Greater Akron. In fact, Mullen said 60% of designated donations passing through the United Way of Summit County in 2105 were made to nonprofits outside of its mission areas of education, income and health, and half left Summit County. More troubling, as a larger piece of the pie went to designations, the United Way was left with less and less to dole out as grants to nonprofit partners working in mission areas of concern locally. Six years ago, United Way of Summit County had between $8 million and $9 million to allocate to community organizations “in line with our vision and goals and focus areas,” Mullen said. Last year, it had just over $3 million to give to those groups. “Over six or seven years, we lost a huge chunk of the dollars that were under our discretion to make investments in the community that are aimed at our goals, at our mission,” Mullen said. And, he noted, when it comes to “the community impact — the community change related to our core values — we are seeing little or no improvement in those conditions in Summit County.” Grim conditions to be sure. Better than half — 52% — of Akron children live in poverty, and 39% of Summit SEE CHANGE, PAGE A-6

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AKRON

A deeper look at mindset of residents By DAN SHINGLER

The survey says...

dshingler@crain.com

Below are the top-five concerns of Summit County Community Pulse Report respondents in the first year of the survey and the most recent year.

@DanShingler

Summit County’s had a decent decade. At least that’s what the people who live there think. Just ask Amanda Barna — because they told her. Well, perhaps not Barna directly, but probably one of her employees at Akron’s Center for Marketing and Opinion Research (CMOR), a polling firm where Barna is vice president and co-owner. For the past 10 years, CMOR has conducted an annual poll of 800 randomly selected county residents, asking them about their top concerns, whether the county was heading in the right direction and other topics, some requested by civic policy makers. It’s officially called the Summit County Community Pulse Report, and each year it gives a look at the community’s heartbeat. But 10 years of results are revealing some trends that Barna and others say speak well of the general health of Summit County and the city of Akron. “In terms of the number of people

2007

2016

1. Employment, 25.5%

1. Crime and safey, 30%

2. Education, 19.4%

2. Government/politics, 22.5%

3. Government/politics, 15.6%

3. Employment, 20.5%

4. Economy, 14.4%

4. Economy, 8.9%

5. Crime and safey, 12.3%

5. Housing, 6.4%

Source: Center for Marketing and Opinion Research

Akron officials break ground on work for the city’s massive tunnel that’s part of its federally mandated sewer overhaul. That issue ranked high on the list of concerns of residents last year. (Bruce S. Ford)

who say they’re better off financially, it’s higher than it’s ever been,” Barna said. “In terms of the number of people who say they’re worse off, it’s the lowest than it’s ever been. “We’ve only asked that question since 2011, but I’m going to go out on a limb and say if we’d asked it in 2009

and 2010, it would have looked worse,” she continued, referring to the worst years of the recent recession in Akron. It’s just one of a few areas in the survey that points to improvements in the Akron area’s economy and a corresponding increase in economic optimism among residents. The job

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market is another topic that’s shown some improvement. “For the first eight years, employment was the No. 1 issue, and that peaked at more than 50% in 2010,” Barna said. In other words, when asked what was their No. 1 concern — the survey’s first question each year — more than half of residents said it was fear of losing their job, or not finding one, in that bad economic year. Today, people have other concerns. “Last year, employment went down to No. 2, and government and infrastructure were No. 1 — and there was a lot of news on the sewers at that time,” Barna said, referring to a 2015 federal mandate requiring Akron to undertake $1.4 billion in sewer improvements. “Today, that’s not as top-of-mind anymore,” Barna said of infrastructure concerns. “Now it’s crime and safety concerns. One of the things I think is driving that increase is the heroin problem in Summit County. I went back and looked to see how many people actually used the word ‘heroin’ or ‘opiate addiction.’ Last year, we didn’t have any … this year it was 5.3% of respondents.” Jobs? They’re now No. 3 on the list of things residents most often rank as their top concern.

getting Akron’s manufacturing sector increased exposure at international trade fairs in Hanover, Germany. City, county and other local governments have also worked together to extend city services, such water and sewer, to suburban industrial parks, Hill said. Summit County executive Ilene Shapiro hopes the county has done a few things right. Before taking the reins of county government this summer, she was the president of county council and right-hand woman of the late county executive Russ Pry, who Hill also credited with much of the county’s success. “We have come through a long, difficult time — the recession. And a lot of people were hurt by that,” Shapiro said. “Hopefully, the county did some of the right things to help stabilize things, and we were forward-looking.” Shapiro’s a survey fan and said she and other civic leaders use it to gauge residents’ concerns and to measure their success in addressing them. So is the John S. and James L. Knight Foundation’s Akron program manager, Kyle Kutuchief, who said the poll gives him and other community leaders a snapshot, and now a long-term view, they don’t get elsewhere. “It’s a countywide poll, so it overcomes some of these governmental subdivisions,” Kutuchief said.

Beyond the recession

Feeling positive

The new top issues aren’t imaginary problems, of course — and residents really do know best when it comes to what’s troubling their communities. Akron’s sewer bill is massive and will cost residents plenty, and the city and county both have heroin problems that are probably at least on par with what the nation as a whole is facing. And wouldn’t it be nice if jobs were, say, 10th, on the list of top concerns? But the fact that people are worrying more about crime, drugs and infrastructure, which are often community issues, more than about their own jobs, is still likely a good thing, said Ned Hill, a longtime Northeast Ohio economist and now a professor at the John Glenn College of Public Affairs at Ohio State University. He’s not surprised that drugs have become top of mind, in Summit County or anywhere else in Ohio. “When the real day-to-day worries about our economic future are present for fewer of us, other issues come to the fore. The opioid epidemic is everywhere, and it’s scaring people,” Hill said. While it rises and falls along with the state and national economies, Summit County is probably also reaping some of the benefits of policies past and present. For example, Hill said, former Akron Mayor Don Plusquellic was active in

Barna said she sees other interesting things in her long-term data as well – not only trends, but complete reversals of sentiments with regards to local economic issues. Not only do the majority of people feel that they’re better off financially, but the number of people who feel negatively about their job prospects has been dropping while the number of those who feel positively has gone up. For the first eight years of the survey, the pessimists outnumbered the optimists on the job front and often by a vast margin. But they have been equal in number since 2015. In 2013, for the first time, those who felt positive about the local economy overall outnumbered those with a negative view – and they continued to hold the majority in this year’s survey. But while economic concerns rise and fall, and new problems come to worry county residents, one thing has remained constant in the 10 years CMOR has done the survey: A majority of residents like the county they call home. Throughout the course of the survey, about three-fourths of respondents view the county positively as a place to live and fewer than one in 10 have a negative view. “In the suburban areas, 84% rated it as excellent or good, compared to 61% of Akron residents. So there’s a big difference there” Barna noted. “The lowest ratings are generally in Akron, each year, but it’s still a 60% positive rating.”

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PA G E A - 5

The Main Course: Jennifer Karpus-Romain

Chill Ice Cream dishes out unique attitude and flavors Chill Ice Cream Co. hosted its downtown Akron location’s grand opening earlier this month, and while the company’s first spot in Medina has been booming since April 2015, the origins of the artisan shop goes much further back. And the future may hold even more growth. When brothers Zachary, 27, Jeremy, 24, and Patrick Jaworski, 19, were growing up in Valley City, they got sick of traditional ice cream flavors. They truly enjoyed ice cream but wanted something more than just vanilla, chocolate and strawberry. Their quest for better ice cream led their parents to buy an ice cream-making machine for their home. The brothers played around with different and inventive flavors. They were no longer bound by the local ice cream parlor or what was in the grocery store’s freezer. As the boys grew into adulthood, they wanted to embark on something that would not only be fulfilling for them, but would make others happy. It all came back to the ice cream.

Ice cream ideology With the help of their parents, the brothers self-funded their ice cream venture and found a location in the Medina Square, 11 Public Square. All three brothers are co-owners of the business, with Jeremy running the Medina store

Chill Ice Cream Co., at a glance Where: 30 N. High St., Akron. Hours: noon-10 p.m. Monday-Friday; 4-10 p.m. Saturday. Closed Sunday. The vibe: A little fun for everyone. Chill caters to a “foodie” palate and is not your typical ice cream shop. But it still wants to appeal to kids. The former machine shop has an industrial vibe with added modern touches. Specialties: Most flavors rotate, but staples include sea salt caramel truffle, black out, butter pecan, vanilla cloud, Philadelphia vanilla, and chocolate milk and cookies.

The Jaworski brothers chose a site with an industrial vibe in downtown Akron for the second location of their Chill Ice Cream Co. The other location is in Medina. (Shane Wynn for Crain’s)

and Zachary running the Akron location. Patrick is the primary ice cream maker, which he makes at both stores. A key element to the brothers’ philosophy is using all-natural ingredients. While they initially toyed with artificial products, they just didn’t make for good ice cream, they said. “It wasn’t us, so we turned back to the basics,” Patrick Jaworski said. In its frosty treats, Chill uses natural flavors, such as cocoa, sugar, lavender water, purple carrot extract and red beet juice. If a recipe calls for fruit, it’s always fresh. “Everything is done the right way,” Jaworski said. At both locations, flavors rotate of-

ten, with new ones popping up. Customers can rely on some staples, including sea salt caramel truffle, vanilla cloud, and chocolate milk and cookies. But there are also flavors for those who want something even more unique. Sample something like the zucchini bread, the munchies (peanut butter ice cream with pretzels, Ritz crackers and kettle-cooked potato chips) or vanilla stout. Urban locations, such as Medina Square and downtown Akron, have high foot traffic, and that makes for a good pool of customers. Jaworski declined to talk specifically about Chill’s financials, but he said they have been

Menu: All natural ingredients. Ice cream rotates frequently. Chill recommends if you really like a flavor, take some home because it may be gone tomorrow.

happy with their success. “We’ve definitely exceeded what we thought we’d do,” Jaworski added. The company employs nine parttime workers, but the brothers still are eyeing growth. While no plans are set, the Jaworskis said their next venture may be a mobile truck.

Discovering Akron With the Medina location humming, the brothers looked to expand.

For their second parlor, the brothers wanted another area with high foot traffic and nearby community events. After checking out spots in Lakewood, they settled on Akron. “Our concept fit almost perfectly right into Akron,” Jaworski said. The city supported Chill from the get-go through the Downtown Akron Partnership (DAP) pop-up program that helps new businesses in the area get started. “As part of the pop-up program, DAP provides rental assistance for the first six months with the Knight Foundation support,” said Sharon Gillberg, DAP communications director. “The goal is that after six months, the business is able to continue longterm in that space and remain a destination in downtown and not only survive, but thrive.” When choosing their location, the Jaworskis wanted more than plain, white walls. When they found a basement location, with an industrial look, on High Street that once housed a machine shop, they knew they had found the right spot. “We wanted something that stood out,” Jaworski said. The pop-up program saved Chill about $5,000 in rent for the first five months. In turn, the brothers donated that money to the University of Akron’s Art Bomb Brigade that partnered with Jay Croft and UA alumni to paint a mural outside of Chill.

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Baby-sitting app is coming of age through pitch competitions JUDY STRINGER clbfreelancer@crain.com

Watch out, baby sitters. As if Netflix was not already eating into the profits of teens trying to make bank from beleaguered parents who need downtime, a baby-sitting exchange app developed by two Akron-area moms threatens to cut them out altogether. Founders Audrey Wallace and Amy Husted launched a beta version of their Komae app on Sept. 6. With its “What would you do with free baby-sitting?” tagline, Komae allows users to build virtual networks — which they call “villages” — made up of parents who know and trust one another and are willing to trade baby-sitting services. Within a week of the beta launch, 100 users had signed up. Wallace and Husted like to add another 4,900 by the end of the year. Sound ambitious? Maybe for other emerging apps, said Shannon Lyons, executive vice president of Flashstarts, a business accelerator in Cleveland and an adviser to Komae. “What they are producing is absolutely a solution to a need — a need that I feel on a regular basis, a need that my business partner feels on a regular basis, a need parents of young children everywhere feel on a regular basis,” Lyons said. Add to that the app’s innate “virali-

Husted

Wallace

ty” — users invite more users — and Lyons said “it’s going to be really interesting to watch them grow.”

Making the pitches Lyons and Flashstarts, which invested $50,000 in the company last month, are among an expanding list of homegrown Komae supporters. Wallace and Husted have been racking up grass-roots investments for about a year now, beginning with a 159-investor, $20,000 Kickstarter campaign in October 2015. “We completed Kickstarter successfully on a Monday and two days later went to the Female Entrepreneur Summit in Cleveland,” Wallace said. “We had never even been to a pitch competition before. … We walked in there to get coaching from the Kent State professors on what we thought was how to make a pitch, but really was (coaching) to help us perfect our pitch, so we went from zero to 60 that day.” The duo walked away with the

$10,000 prize. Over the next six months, they won another $36,500, including $25,000 from a regional pitch contest held by the student-run Northeast Ohio Student Venture Fund (NESOV); $10,000 as one of three winners, out of 200 entrepreneurs, in the Rent the Runway Foundation and UBS Project Entrepreneur venture competition in New York City; $1,000 from Flashstarts Tech Pint Pitch at the Cleveland Agora; and $500 from the NEXTOhio startup conference in Akron. Wallace said as the startup matured and progressed, so did the pitch competitions. The Female Entrepreneur Summit, for example, involved a two-minute commercial. “We knew about our product at that point, so that was something we could easily do,” she said. NEOSV, however, required a pitch deck — a slide presentation that provides a quick overview of the business plan — and financials. Because they did not have the latter in place, the founders had to study revenue and expense forecasts, cash flows and balance sheets. “It helped us recognize what we needed to be learning in order to pitch to the next sophisticated group of people we were speaking to,” according to Wallace. Coming of age through the pitch competitions also opened Husted’s eyes to one big advantage Komae has over other startups looking for seed

CHANGE CONTINUED FROM PAGE A-3 County children are obese or overweight. More than a quarter of Akron Public Schools third-graders don’t read at grade level, and 26% of high schoolers do not graduate in four years. “It’s our conviction and our board’s conviction that we need to really start to systematically approach those [conditions] and make lasting change here in Summit County,” Mullen said. A big part of the solution, they believe, is changing how the community — donors and grantees alike — thinks about and uses the United Way. The agency no longer wants to simply support others who are driving change. It wants to get behind the wheel. That means no more broad “request for proposals” (aka RFPs) to fund any local organization or program that falls under its focus areas. Instead, Mullen said, the board will put out three to six “high-level” goals this spring — for example, to increase at-grade-level reading among Akron Public Schools third-graders from 73% today to 90% in 2020 — and organizations that want a slice of Summit County United Way’s allocations in 2017 will need to align with very specific benchmarks toward one or more of those goals. Plus, the agency will require future funding proposals to include an element of corporate or donor engagement.

The Komae app allows users to build virtual networks of parents who are willing to trade baby-sitting services. (Contributed photo)

money — a compelling story. “We are two stay-at-home moms, and we started creating this and that made us really unique because we are the best people to create our product. We know the need. We know the pain of trying to find child care,” she said.

‘Low-fidelity’ While startup contests have provided an important third-party validation, Lyons credits a low-tech, twoyear pilot for much of Komae’s early success. Long before the duo wrote a business plan or uttered the phrase “pitch deck,” they enlisted 16 families in a traditional baby-sitting co-op, where parents earn points for watching their friend’s kids that they later cash in for their own child care. “We really feel like that is going to drive the resource to make the change,” Mullen said. “Once people are a part of it, and they touch and feel and participate, they are going to be more likely to give and invest their dollars in the work we are doing to achieve those goals.”

Latecomer The Summit County chapter is not the first United Way division to undergo this sort of reinvention. During the past decade, agencies all over the country, including the United Way of Greater Cleveland and the United Way of Greater Lorain County, have instituted new processes and strategies aimed at establishing their local agency’s reputation as a problem solver rather than a funding source — an approach backed by the United Way Worldwide. Nor did the Summit County leadership and board only recently decide to jump on the bandwagon, according to Rick Noechel, a senior vice president at Goodyear Tire & Rubber Co. and a member of the Executive Committee of Summit County’s United Way board. Realignment has been on their minds for at least five years. Hiring Mullen from the United Way of Metropolitan Nashville in March 2015 was one way to get that started, Noechel said, as Nashville was a pioneer in making the transformation. Mullen said not being an early adopter gives the local leadership and board the advantage of seeing what has worked elsewhere and tailoring that to regional needs. The Ak-

Wallace and Husted drafted a point system and policies, set up a Facebook group, watched users interact there and over email and text, tracked points on Google spreadsheets and handled disputes – all of which was used to inform Komae’s design ahead of investments in more sophisticated portals and platforms. That, Lyons said, is a good lesson for other aspiring startups. “We really want to show people how to do lean operations and really do all of their testing in these low-fidelity environments,” she said. “Then, once you know, they you spend the money on tech design. “They knew exactly what they were going to build. As an investor looking for entrepreneurs, that is a characteristic we absolutely look for.” ron agency, for example, has placed a lot of emphasis on community engagement. In one recent case, Mullen and his team set up a backpack-stuffing station at the Goodyear headquarters so employees could drop in and fill a bag with school supplies they were already donating to Akron students. For years, the company has encouraged employees to purchase supplies as part of the United Way’s “Stuff the Bus” campaign, and many did. This year marked the first time those employees also helped fill — what turned out to be 750 — backpacks. During another project in June, the Summit County contingent rolled up their sleeves to construct a new playground at Suddieth Park in Akron’s North Hill neighborhood with the help of volunteers and donations from Foresters Financial and the city of Akron. The $30,000 project included resurfacing a basketball court, adding picnic tables and installing new playground equipment. “We are putting a stake in the ground that United Way is no longer interested in just writing checks,” Mullen said. “We want to be a part of the engagement.”

Downsizing designations? Whether the United Way’s soupedup engagement model will ultimately result in more unrestricted gifts remains to be seen. That has not yet been the case in Lorain County, which began its transformation about five years ago. At the time, 18% of the donations funneling into the

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CRAIN’S CLEVELAND BUSINESS

As I began to think about writing about this topic, I started to ponder how we influence people and the nuances of communicating wants, needs and desires to others. It is truly an art. Speaking of art, a few times throughout my career, I’ve been fortunate enough to work with the hiphop trio De La Soul, whose latest album “and the Anonymous Nobody…” hit the web on Aug. 26. The album, released through a self-run label called Art Official Intelligence, was financed completely through crowdfunding, to the tune of $600,000 (the initial ask was $110,000). This represents the second highest-grossing request for a musical project in the history of Kickstarter. I mention all of this because the group’s series of well-crafted digital pitches to their supporters were a huge part of why they were so successful in raising capital. With that in mind, here are five things to consider as you approach your own big pitch: Strive for clarity: You will be pitching ideas throughout your entrepreneurial life, so get used to it. Better yet, become great at it by focusing on how to deliver your message as clearly and concisely as possible. Whether you are speaking with donors, investors, customers, friends or family, they need to understand your story and your ideas before they can help you carry both out into the world.

ed a en-

United Way there were designated to a particular nonprofit, and that number has not budged, according to executive director Bill Harper. Still, Harper sees plenty of positive effects. Through its impact-focused collaborations with corporate partners and nonprofits, the Lorain County United Way has been able to leverage 50 cents of outside funding for every dollar of fundraising, and the number of organizations working with the agency has quadrupled from 30 in 2011 to 129 today. “The fact that we’ve been able to engage that many people, that is certainly important,” he said. And while the engagement approach may resonate with some donors, Cynthia Ries thinks many will still want to direct their gifts. “Some people really do know specifically where they want their money to go to,” said Ries, who is executive director of Greater Cleveland Community Shares, a federation of social justice nonpofits, which like the United Way allows donors to designate gifts to charitable organizations outside of its mission area. “We want to help them make choices rather than make the choices for them.” Mullen said the new strategy is not meant to discourage donor choice. “If they are passionate about a cause, we want them to make that choice to support that organization. We are not changing that,” he said. … “But if we don’t give the donors a reason to choose United Way, that is every reason why they would choose to designate another organization.”

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Pitch perfect: five tips to help you land your next big ask

Never forget the ‘why’: As an entrepreneur, your story is most compelling when it leads toward a problem that you are attempting to solve.

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Entreprenureship: Tobin Buckner

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Tobin Buckner is JumpStart’s Akron entrepreneurial community manager and writes a blog about entrepreneurship in Northeast Ohio.

That’s why the most persuasive slide in your pitch deck is the one that lays out, in very specific terms, why your idea matters. This slide allows inves-

tors to see the problem you are positioned to solve, which correlates directly to the value you and your idea bring to the table. Give them the real you: Only a small portion of your audience will listen to your every word, but many are paying attention to your body language and “stage presence.” That’s why the best, most memorable speakers are the ones who exude the most excitement and passion. In the venture space, investors look primarily for profit, but they also want to be inspired.

Take good notes: A major pet peeve of mine (and many other mentors/investors) is when you know that the people pitching to you cannot possibly remember all of the feedback they are getting, yet they don’t write anything down. It’s almost as if they feel they don’t need to take anyone’s advice or work to improve. Don’t let this be you. Bring someone with you for support and note-taking if you must. Don’t waste a single opportunity to gain knowledge and strengthen your pitch. Practice makes perfect: Here in

Northeast Ohio, there is no shortage of chances to perfect the art of the pitch. From F.U.E.L. by the Bit Factory, to Pitch U, ARCH Angels and Sundown Rundown, to Startup Scaleup, TechPint and NEXTOhio, there are plenty of opportunities for local entrepreneurs to be heard. It takes time and practice to perfect the art of the pitch. But remember: Just like any art, it comes down to self-expression, knowing your craft, understanding your audience, proceeding with passion and showing your substance. Do this, and you’ll ultimately be successful.

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Szalay’s sits right next to the Towpath Trail and lots of cyclists and hikers stop in, especially on the weekends. (Shane Wynn for Crain’s)

SZALAY’S CONTINUED FROM PAGE A-1 each year. This year’s theme is tied to the farm’s 85th anniversary. The maze comes with a map so everyone can find their way out, and walking the maze has become an annual tradition for many families. On weekends, Szalay’s sells prepared food – sandwiches, fresh fruit sundaes, cider and (of course) corn – which people can eat while relaxing at one of the “glider” tables or swings that abound. Live music helps round out the ambiance. The fresh produce market offers another revenue stream, and bikers and hikers on the nearby Towpath Trail stopping in for a snack break does, too. Of course, all of those attractions are dependent on weather, too. “If it’s 80 degrees, we are busy. In 90 degrees, we are not,” she said. Paula declined to break down how much each of these supplemental income streams typically bring in. She doesn’t keep the books on a computer, she explained, plus the numbers change each year. She preferred to talk about all the children who delight in checking out the new corn maze each season or the young couples that have gotten engaged in it. “We try to make people happy,” she said. “It comes back to you.” In addition to the farm, the Szalays also operate the nearby Indian Springs mobile home park. “It’s a good fall back,” she said.

A family business The farm employs about 20 people, most of them part time. For many, it’s a second job or something they do during school breaks or retirement. Paula’s parents help out, as do some neighbors. Paula herself started help-

The market sells a variety of produce and baked goods.

ing on the farm even before she and John got married 33 years ago. “We are the best of friends as well as business partners. That’s what it takes,” John said. “It’s hard work, but we love it. You have to.” Despite being 71, he doesn’t plan to stop, saying wryly, “Farmers don’t retire.” He is quite pleased that their children are now part of the family business. Both went to college, earning degrees in nonagricultural fields, but ultimately chose this path. The farm operates on 200 acres, with sweet corn as the major crop — and not just corn that goes to the markets. Szalay’s also grows and sells “critter corn,” a variety that people use as animal feed. Pumpkins round out the crops grown on the farm. The Szalays own about 90 of the acres and lease the rest from the Cuyahoga Valley National Park and the Summit County Metro Parks. Craig Kenkel, superintendent of Cuyahoga Valley National Park, said

Szalay’s Farm contributes to the diverse experiences visitors can have in the park. “It feels like we have the same customer. Some people come to enjoy the park and discover Szalay’s, and others come to Szalay’s and discover the park,” he said. He appreciates that the Szalay family shares the park service’s commitment to the agricultural heritage of the valley. When the park was created 40 years ago, it acquired farm land, and farming mostly vanished from the area. Szalay’s was one of the few left until the Countryside Initiative was created 20 years ago. The initiative has gradually led to the re-establishment of 11 farms in the park by offering 55-year leases to farmers who will live on the land and farm it in environmentally sustainable ways. “Having people live in the park again is nice,” Kenkel said. Pumpkins are another autumn staple at Szalay’s.

Navigating the 3-acre corn maze has become an annual event for some families. Plenty of surprises, like Frankenstein, await inside.

He noted that Szalay’s land lease is different in that it is a shorter agricultural permit and the family does not live on the land. However, it benefits the park by keeping the land open and in agricultural production. “That is helping preserve the cultural landscape of the valley as well,” he said.

Happy customers John Gillombardo, one of the owners of Gillombardo’s Giant Eagle on Snow Road in Parma, said his customers eagerly look forward to the time of year that Szalay’s corn is in stock. “We really appreciate Szalay’s. They are known for the high quality of their corn and for delivering it fresh daily,” he said. “Our customers also like that it is local. They have a very good reputation.” The only downside is the short amount of time that it is available each year, he said.

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PA G E 19

Focus

Gregory Guice Reminger

Marquettes Robinson Thacker Robinson Zinz

Erin Marks Fairmount Santrol

Elizabeth Hijar The Centers for Families and Children

Crain’s ‘Who to Watch in Law’ They’re from big firms, small firms, nonprofits and local companies, practicing in all areas of law. And not only are these individuals making an impression on their respective organizations but the broader Northeast Ohio community as well. That’s why we think these professionals are among those worth watching in the region’s legal sector. These individuals might fly under the radar now but could disrupt the field — for the better — in the future. These interviews have been edited for length and clarity. Alana Jochum Equality Ohio

Ben Stulberg Jones Day

Stories, pages 20-27

Beverly Schneider Steris Corp.

Jonathon Vinocur Thompson Hine

Richik Sarkar McGlinchey Stafford

Mark E. Avsec Benesch

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WHO TO WATCH IN LAW

Elizabeth Hijar General counsel, The Centers for Families and Children

The Centers for Families and Children strives to connect its clients to wellness and workforce opportunities. As a believer in the organization’s mission, Elizabeth Hijar is excited to use her role as general counsel to steer The Centers through whatever legal needs arise. — Douglas J. Guth How did you get your job at The Centers? I’ve been practicing law since 2003 and did consulting for nonprofits including The Centers. I came to the organization for a different position at a time when they didn’t have a general counsel. I identified (general counsel) as something The Centers could benefit from, so the position was created and I was promoted to it in April 2016. What are your duties? I manage our legal affairs, as well as oversee our risk management area and relationships with outside counsel. We have a nonprofit side, a governmental regulatory facet and a part that wants to grow, innovate and make an impact. In that, there’s a broad spectrum of regulations we have to make sure we’re following. Why did you pursue general counsel work? For years I was an associate at a law firm. I learned about the Cleveland nonprofit community because I wanted to be part of a mission-driven organization. Working at The Centers is great because you can see the impact we’re making. Serving Greater Cleveland is a very different way of practicing law — it’s diverse, varied and you have to consider things you normally wouldn’t at a law firm. I work with great people all working toward the same goal, so that makes a big difference. I love being exposed to the health care, early learning and common business needs of organizations. The ‘general’ of general counsel really appeals to my strengths. This is a dream job for me.

Congratulations, Erin! The Fairmount Santrol Family is proud to have one of our own recognized as “Who to Watch in Law” – Erin Marks, our Director of Securities and Compliance. As an innovator in the legal profession and a leader in the community, Fairmount Santrol lauds your past, present and future accomplishments.

FairmountSantrol.com

Congratulations!

What is the most important lesson you’ve learned in 13 years of practicing law? It’s not so much learning how to practice law as being an adult. Don’t be scared to make a change, and don’t be afraid to fail. I was such a perfectionist during my student life, but when I got to the real world I saw how much more complex it was. Some people are scared to take leaps, and if they fail, they worry about what people think. I try to avoid roadmaps and goals. I don’t know where my professional life will take me, but I know that I want to do a great job as general counsel for The Centers.

Community she calls home: Chagrin Falls Recent favorite read: ‘11/22/63’ by Stephen King Last movie she saw at the theater: ‘The Secret Life of Pets’ Favorite Cleveland spot: Public Square Something people don’t know: About seven years ago, she and a friend applied to be on ‘The Amazing Race.’ ‘We would have been great!’ she said.

What others are saying: How would you describe Elizabeth?

“She is creative, collaborative and a true thought partner to me and the members of our executive team.” — Elizabeth Newman, president and CEO of The Centers

Gregory Guice Shareholder, Reminger Co. As the chair of Reminger Co.’s retail and hospitality practice group, Gregory Guice’s reputation precedes him. But within the legal community itself, the Shaker Heights native’s efforts to promote diversity in the profession’s ranks stand on their own merits, setting him apart as a leader for inclusion both within Cleveland and across the profession. — Jeremy Nobile What inspired you to get into the legal profession? I took a couple of classes at college, but one in particular opened my eyes that was about blacks in the law that was taught by a Supreme Court judge for the state of Connecticut. It was just fascinating the sort of issues he brought up that we were writing and researching. I really didn’t have a focus before that. I took a few more related classes and thought I should take a real hard look at the law. How did you gravitate toward your practice area? Although I kind of fell into it, retail and hospitality law is interesting to me in that it actually encompasses several other practices areas. Of course we deal with liability cases, where someone gets hurt and sues, but there are other aspects that come into play, like labor and employment law, worker’s compensation, franchise agreements. All those issues are rolled into one with retail and hospitality. You’ve also made diversity and inclusion a mission of yours, chairing the related committee at the firm. Why is that so important to you? The legal field itself needs more diversity. Firstly, it’s important to me because, obviously, I’m a diverse person. I started to track firmwide diversity efforts, but realized we needed to look outside the state for diverse people — that’s the push I went for. Adding diverse attorneys will lead to a place where people from all backgrounds feel comfortable. It’s all about creating an environment where all people can thrive.

2500 Lawyers. 44 Locations. 5 Continents. www.jonesday.com

Five things

Any advice for other aspiring young attorneys? Take advantage off all the opportunities that come your way, even if they’re difficult. I’m also the chair of the minority clerkship for the Cleveland Metropolitan Bar Association. Numbers for candidates there are down and part of that is due to dwindling law school classes, but there are also diverse candidates who don’t even apply. They might hear it’s difficult. My take on that is so what? If you want to succeed, you have to put in the work. It’ll pay off in the long run.

Five things Hobbies: He plays a lot of soccer and plays in a couple rec leagues. Last book he read: The last in ‘The Wheel of Time’ series by Robert Jordan. Favorite TV show: ‘Game of Thrones’ If he weren’t a lawyer, he would be: A camp counselor for life. Something people don’t know: He was on MTV in the early 1990s for a show called ‘Like We Care,’ which centered on high school students.

What others are saying: How has Greg made an impact on the firm?

“Because of Greg, we have widened our look for diverse candidates. It’s a more national look that’s worked really for us.” — Steve Walters, Reminger’s managing partner

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WHO TO WATCH IN LAW

Ben Stulberg

Five things Favorite TV show: ‘The Simpsons’

Associate, Jones Day

“In terms of that 2007 class (when Stulberg started at Jones Day), he’s got a pretty impressive deal resume. He’s calm and collected and doesn’t get rattled. There are very few M&A lawyers that reside in Manhattan that have had the opportunity to work on things he’s worked on.”

Special skills: He does a lot of boating and is decent at water sports.

In Jones Day’s M&A practice, a segment ranked first worldwide by volume of deals for 15 straight years, Ben Stulberg is one of the many cogs making this legal machine’s field-leading output possible. Stulberg, though, stands out from a large field of sharp lawyers, working on multi-billion-dollar transactions with top clients like Sherwin-Williams, Goodrich Corp. and OM Group with only about a decade of experience at the firm — deals that would make even top lawyers in New York and Chicago envious. — Jeremy Nobile

How he decompresses from work stress: Exercise, ‘like going for a run to clear your mind.’

Why has M&A appealed to you among all the legal segments you could’ve gotten into? I say this tongue in cheek, but at the end of the day no one’s happy when you’re fighting something out. With this aspect of the law, we generally are helping people and getting clients to a place where everyone should be pretty happy and making a good deal of money or buying something they can turn into a great business. I just like that whole process and can’t really see myself doing anything else.

and got it done. We must’ve had 80 to 100 people working on it. It was one of those times where your number gets called, you step into the game, and it’s time to perform.

What’s the most challenging part of this work? No one deal is ever exactly the same, but that’s part of what I like about it. It’s also a long process to get competent in this area. I tell new lawyers interested in M&A to not assume you know anything until at least their third year of doing this. The learning curve can be a little frustrating. You want to be good right away. But it’s just hard to become really good at this until you put in the time.

What others are saying: Why is Ben such a valuable member of the M&A team?

few other companies, though. So we were called on a Friday. Flew in on Monday and signed the deal on Wednesday. In 48 hours of not sleeping, we got in, negotiated the deal

Best advice he’s received: Be persistent. There’s always going to be ups and downs. But you just have to be persistent. If he weren’t an M&A lawyer, he’d be: Something in stock trading.

— James Dougherty, Jones Day M&A chair of the Americas.

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Is there a certain deal or case you worked on that’s particularly meaningful to you? About four years ago, we represented Goodrich Corp. as they were being acquired by United Technologies — it was like an $18 billion deal. There were some market rumors about United gearing up for an acquisition, so we were put on hold. People zeroed in on Goodrich and a

In search of ‘Who to Watch in Education’ candidates Crain’s final “Who to Watch” section of 2016 — “Who to Watch in Education” — is scheduled for publication on Dec. 5. It will highlight up-and-comers and innovators in Northeast Ohio’s education sector, and we’re looking for suggestions. If you think you know who will be among those leading the Northeast Ohio education sector of the future, drop an email to sections editor Timothy Magaw at tmagaw@crain.com. Please put “Who to Watch in Education” in the subject line. Quite simply, the people featured in this section are working to make their mark in this field — whether it’s in the classroom, in an administrative role or behind the scenes. Send your suggestions no later than noon on Monday, Oct. 17. Please include the person’s name, position, and a few paragraphs explaining why he or she stands out. There are no hard and fast requirements for this section, other than that the candidate needs to exhibit the kind of potential that makes him or her someone to watch in the field of education.

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WHO TO WATCH IN LAW

Marquettes Robinson

What others are saying:

Shareholder, Thacker Robinson Zinz

How would you describe Marqui?

In her role, Marquettes Robinson oversees a wide range of complex cases, representing corporations in contract disputes, business torts and a host of other challenging litigation matters. The Harvard graduate and Glenville native is also eager to use her influence as an African-American woman to promote diversity and inclusion in Cleveland’s legal market. — Douglas J. Guth

“Marqui lives and practices law with passion: Passion for her family, passion for her friends and passion for the issues that matter most to her. She is never afraid to state her mind, but will also listen to the perspective of others.”

Why did you pursue law as a career? As a kid, I wanted to be a judge, and it turns out you need to be a lawyer to become a judge. My first exposure to judging was the Sunday school story about King Solomon and the two women fighting over the baby. It seemed so wise and right to me that he wasn’t focused on who gave birth to the child, but who served as the mother. That struck me as smart, and I thought I could do something like that. Why did you want to practice civil litigation specifically? It appealed to me because my superpowers are limited: I can’t fly, I’m not super strong, but I’m darn good at reading comprehension. You must listen to your client and determine their needs and fears and then apply that to your opponent. What are they looking for and how can you reach a middle ground? That skill set really set me up for litigation. What has been your most challenging legal problem? Very few law schools prepare you for the minutiae of practicing law. You may be seduced by the constitutionality of legal ideas, but that evaporates on the first day in a real job. The challenge is to evolve not only your skill set, but also your mindset in adapting to client needs today, next year and three years from now. What are the particular challenges inherent with practicing law as a woman of color? Being a woman, people will mistake you for a court reporter or secretary, or there will be older men trying to ‘little girl’ you and show you how it’s done. (People of color) face obstacles like lack of understanding that you belong in a courtroom, or surprise that you’re articulate. Our firm belongs to The National Association of Minority & Women Owned Law Firms. I get local businesses to dedicate part of their legal spend to minority- and women-owned firms. I’m also on a diversity committee with the Cleveland Bar Association to improve pipelines and retention of diverse lawyers in the Cleveland area.

— Ellen Toth, counsel at Ogletree, Deakins, Nash, Smoak & Stewart

Five things Board involvement: Epilepsy Association, American Constitutional Society and the Apostolic Faith Tabernacle. Her inspiration: Anyone who was told ‘You can’t’ who then showed the world ‘Yes I can.’ Favorite movie: ‘The Princess Bride’ Favorite Cleveland spots: Edgewater Park and the Cleveland Museum of Art Favorite musical artist: Prince

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WHO TO WATCH IN LAW

Mark Avsec

What others are saying:

Partner and vice chair, Innovations, Information Technology and Intellectual Property Group, Benesch, Friedlander, Coplan & Aronoff LLP

How does he stand out among other members of the firm?

“The analogies Mark draws between 3D printing and the music industry really puts him on the leading edge of that. Plus, he’s just a superstar. We all kind of look up to Mark because of his background.”

In the legal sector, Mark Avsec is best known for his industry-shaping work in Benesch, Friedlander, Coplan & Aronoff LLP’s cutting-edge 3D printing practice. To everyone else, he’s probably best known for his music as the brains behind hugely popular, chart-topping hits like Wild Cherry’s “Play That Funky Music” and Donnie Iris & The Cruisers’ “Ah! Leah!” It’s that very music career — which includes writing more than 500 songs and producing or performing on more than 35 albums for musicians ranging from Carlos Santana to Bon Jovi — that fed his passion for law. — Jeremy Nobile How did your music career translate to an interest in law? I wanted to defend people and companies in the music industry who were going through unjust copyright infringement lawsuits. These lawyers are taking shots on contingency and looking for a settlement. That’s why I became a lawyer. And it was a lawsuit against you that set things in motion, right? I wrote a song called ‘Ah! Leah!’ for Donnie Iris & The Cruisers. I got a summons at one point saying I stole the song. My lawyer said it would cost a lot to litigate and that I should settle and let it go. But I wouldn’t give this guy 5 cents. We went through a jury trial, and Donnie Iris and I won. The legal fees, and this was in the 1980s, were about $150,000 — way more than ‘Ah! Leah!’ earned. I had royalties recouped for years to pay that back even though I did nothing wrong and even though I won the case. I felt very vulnerable, and I was ticked off. That’s when I decided to go to law school.

— Gregg Eisenberg, Benesch managing partner

Five things Would he run his own business? Not at all. He’s happy practicing law, helping clients, playing music, teaching. Favorite music: He’s a self-described ‘Beatles freak.’ Also, anything Daniel Lanois produces.

Last album he bought: ‘Homecoming’ by America on vinyl for his girlfriend. Of the songs he’s written or produced, the most meaningful is: In 2010, Sony Legacy put out its version of Santana’s 1999 record

‘Supernatural,’ and a song he co-wrote — ‘Angel Love (Come for Me)’ — was on there. ‘I was honored someone like Carlos Santana covered one of my songs,’ he said. Something people don’t know: He sleepwalks.

How did all this lead to your interest in 3D printing law? 3D printing is going to affect almost every business. We’re evolving from a model of mass production to something like production by the masses with a high level of customization. Everything from sneakers to prosthetics, someone will be able to print these things out without the IP owner ever being aware. What’s happening there is a lot like what happened in the music industry. There is going to be a whole host of legal issues.

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WHO TO WATCH IN LAW

Beverly Schneider

What others are saying:

Senior corporate counsel, Steris Corp.

What about Beverly has helped in her ability to take on expanded roles and varied responsibilities?

Beverly Schneider is often asked how she made the switch from studying singing to enrolling in law school. It may seem like a huge leap — and in many ways is, she concedes — but her bachelor’s in vocal performance turned out to be great preparation for her legal work. “I don’t think you meet too many people who work harder than musicians,” Schneider said. “And so I think that really did set me up to be able to take on the monster that is law school.” The Texas native fell in love with Cleveland during her summer internships at Thompson Hine, where she worked upon graduating from The University of Michigan Law School. From there, she moved to Steris Corp. — Lydia Coutré You’ve mentioned that your move to Steris about five years ago was driven by its reputation and a desire to switch to in-house legal work. What about the environment there attracted you? When I was interviewing, one of my biggest questions to the legal department was ‘How do you feel like you interact with your internal clients?’ I wanted to feel comfortable that I was moving into a department that felt like it works really well with the business, and feels like a collaborator and a partner, as opposed to a stop sign. What challenges — and opportunities — have come from moving to in-house legal work? I think one of the greatest challenges for me, but also one of the greatest benefits for me, is that we are not set up as specialists, so I’m a generalist now. Before, I was learning to be a specialist in M&A and that is much more my comfort zone: to learn something and know everything about it. Now I have to feel comfortable to say I don’t know the answer to that and I’m going to reach out to local counsel who specializes in this area, which just isn’t my favorite thing to say. Where would you like be in the future? I honestly at this point just want to keep learning how to be a better lawyer every day. The diversity of work is so incredible. I just look forward to the times when I say, ‘Oh yeah. I did this once before. I’ve got this.’

Five things Favorite thing to sing: German Art Song Favorite spots in Northeast Ohio: Edgewater Park, Johnny Mango and Parallax Favorite movie: ‘Shawshank Redemption’ Other work: United Way of Greater Cleveland board of directors since 2012

What others are saying:

Partner, Thompson Hine LLP

How does Jonathon stand out?

Jonathon Vinocur is among a new wave of attorneys who has built a practice out of tailoring age-old legal practices to the fast-paced needs of high-growth companies. As the leader of Thompson Hine’s Northeast Ohio emerging companies practice, Vinocur works with entrepreneurs to streamline the processes of starting a company. Central to that approach is a fixed-fee startup program, called QuickLaunch. He and his team have assisted dozens of enterprises, including Scout RFP, StreamLink Software, Cleveland Whiskey, Complion and inTouch. — Judy Stringer

“Jonathon stands out as one of our brightest rising stars because he is such an entrepreneur, which in turn helps him be effective representing emerging companies. He just thinks like his clients and really understands their mindset.”

What do you like the most about your area of practice? Our clients’ technology is really amazing, and the way that they fill needs in the marketing place using tech is also amazing. They identify problems between a buyer of goods and a seller of goods, for example, and so they create a software product to issue RFPs without huge spreadsheets. Or, they have software that allows public bodies that issue grants to manage those grants with all the various reporting functions. These are the things that day to day none of us knows there is an issue with. What kinds of projects do you find the most rewarding? It’s easy to say when these companies sell that is rewarding because the founder gets to realize their ultimate objective. But honestly anytime we have the chance to work with a founder that second or third time, I find that incredibly rewarding.

What would you say to a student considering law? I would say that the profession is in a time of transition, and they should fully examine the assumptions on which they based their decision and determine if those assumptions are part of that changing landscape.

— Timothy Clancy, Steris group general counsel, health care

Hobbies: Recreational biking, yoga, cooking

Jonathon Vinocur

What was your most challenging legal problem? We work with dozens of super smart people who are constantly running at a flat out sprint and providing their legal services just in time with the right amount of depth at a price that is cost effective. That is a completely different way of thinking about the practice of law.

“Beverly’s got an incredibly strong work ethic, she’s a very personable person. She’s incredibly flexible. She has continuously and progressively expanded her role and served the company and our clients well.”

Five things Passport stamps: Italy and Israel First job: Washed dishes at a nursing home Downtime activities: None. ‘I have a 4 year old and a 6 year old.’ Last movie: ‘Zootopia’ (see above) First car: 1998 hatchback Hyundai Excel

— Robyn Minter Smyers, partner-incharge, Cleveland, Thompson Hine

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WHO TO WATCH IN LAW

Erin Marks

What others are saying:

Director of securities and compliance, Fairmount Santrol Holdings Inc.

What are Erin’s strengths?

Erin Marks has always had an interest in the intersection of business and law. She earned her joint juris doctorate and MBA from Case Western Reserve University in 2004. She worked at law firms Squire, Sanders & Dempsey LLP and Jones Day before moving to an in-house role at GrafTech International. She worked there for a little over two years before taking a break to stay home with her children. But a few months after having her youngest child, she decided to reenter the workforce. The offer to work at Fairmount Santrol, a sand-based product provider in Chesterland, came much faster than she expected — she got a call about a week after beginning her search. — Rachel Abbey McCafferty

“She is very thoughtful about how she handles an issue.” — David Crandall, senior vice president and general counsel. He added that she doesn’t get “tunnel vision.”

What surprised you the most about Fairmount Santrol’s IPO in 2014 from a legal perspective? I handled the deal from the legal perspective, but also the training. I don’t know that that’s what surprised me but that’s probably the most important aspect that isn’t the most intuitive. The education piece, training people at all different levels in the company on different aspects of the rules and how the rules come into play. What attracted you to an in-house counsel position? I was always interested in international affairs and business — how things work. And how we get things. Like, manufacturing. It’s just very interesting to me. I think that the law has all of those aspects to it. In business law, I sometimes play the role of educator, advisor, project manager, conflict mediator.

Five things Favorite travel spot: She loves to travel, and the first three spots she named were Paris, San Francisco and Seattle. Where you can find outside of work: A yoga studio, a charity event or an activity for one of her children Nonprofit involvement: She’s on the board for Believe in

Dreams, which helps fulfill dreams for children who have been through non-medical hardships. Favorite movies: ‘Life is Beautiful’ and ‘Gone with the Wind’ Must-do in Cleveland: Visiting Severance Hall when the orchestra plays along with a movie

Why is it important to you to be part of the business team? I just really love contributing my talents, energy and time to helping the business succeed and employing people. That’s really the heart of it, right? We’re all fighting to grow, and why do you want to grow? The more we grow, the more we can feed families. That’s what it’s all about. To be part of teams that help build intellectual property and protect intellectual property and come up with creative solutions for contracts to sell our products. I chose business and corporate law because I thought, well, I want to be part of building something.

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WHO TO WATCH IN LAW

Richik Sarkar

What others are saying:

Member, McGlinchey Stafford

What impresses you about Richik?

Commercial litigators on the corporate side can spend a lot of time putting out fires. Richik Sarkar did that for a while. Then, he decided there had to be a better way. “As I got more involved in these things, I discovered that it was easier to find the root cause of it and solve that issue so that my clients were not hiring me 50 times for the same problem,” Sarkar said. An early challenge involved fines levied on companies accused of violating federal telemarketing restrictions. After seeing a number of these cases, Sarkar began talking with clients about who they call and developing strategies to obtain pre-authorization for automated calls. Today he applies that same proactive approach for his clients at McGlinchey Stafford and for the broader Northeast Ohio community through his work with the Greater Cleveland Partnership, Cuyahoga County Community Improvement Corporation and various nonprofits. — Judy Stringer

“Richik Sarkar actively works to learn about his clients by listening to what they need and want, but also gets ahead of the curve for his clients by being very active with business groups to learn about problems his clients might encounter and helping them to mitigate their effects or avoid them altogether.”

When did you know what you wanted to do professionally? In high school, I knew that I liked defending a point and developing an argument. Once I realized that I like doing that and am good at it, there are certain jobs that allowed me to capitalize on those skills. Either through policy or litigation, you’re doing a lot of defending of points. What has surprised you most about working in commercial law? How often things you think would just be business disputes came down to personality clashes or arguments over — what I would consider — insubstantial things that then became a substantial business problem. Someone felt slighted by someone else. A lot of what we would be doing is driven by that slight real or imagined that someone suffered. You were a member of Leadership Cleveland 2015. How do you apply what you learned to your practice? I learned a lot about different leadership styles and how there are lots of different ways to get to the same place. None of them may be better than the other, so long as you get to the same place.

Five things

— Shawn DaVis, senior director of business development, Greater Cleveland Partnership

Favorite pastime: Discussing issues with smart people Bucket list item: An encore trip to Spain Last book read: ‘The Big Short’ by Michael Lewis Go-to spot: The Union Club Superpower of choice: Omnipotence

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Paul Beckwith, chief security officer, Progressive Insurance Robert Eckman, chief information security officer, MCPc (moderator) Candice Hoke, professor of law, CSU Cleveland- Marshall College of Law Jim Kacic, CFO, MAI Capital Management Kevin Mooney, senior counsel and chair, IT practice group, Cleveland Clinic Mike Powlison, technical resource manager, Parker Hannifin

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WHO TO WATCH IN LAW

Alana Jochum

What others are saying:

Executive director, Equality Ohio and Equality Ohio Education Fund

What inspires you about Alana?

Columbus-based Equality Ohio tapped Alana Jochum to launch its Cleveland office in 2014, hiring the Upstate New York transplant — at the time an associate at Squire Patton Boggs — to direct its Northeast Ohio operations just as LGBTQ issues were gaining momentum in Northeast Ohio. Cleveland was hosting the Gay Games. “We also knew it was also a time of contrast. Three trans-women of color were murdered within a very short time around the time of the Gay Games,” she said. Jochum’s oversight was extended statewide in 2015 when she became managing director of the organization. One year later, the Equality Ohio board put Jochum in the executive director seat. — Judy Stringer

“Her example makes me proud of the profession that I have chosen, and she inspires me to utilize my legal skills and efforts beyond my career legal practice area and into areas that will create a better society for all our citizens.”

What inspires you about your work? It is all the stories that we hear. People who are now married to their partners and could not believe that would happen in their lifetime. Reba Alcorn, the trans-woman in Cincinnati, who sadly took her life. She had endured conversion therapy and couldn’t take it anymore. She committed suicide and left a note to society. Her last words were ‘fix society please.’ I take it very seriously.

— Anthony Andricks, staff attorney, Thompson Hine and a founder and co-chair of the LGBT and Allies Committee of the Cleveland Metropolitan Bar Association.

Why did you pursue law? I always wanted to do something affecting civil rights. As time past, I realized it was necessary to understand the systems in which people become entangled and how to navigate those systems in order to improve them or at least help people thrive or even survive through them at times.

Five things Inspiring read: ‘Breaking Night’ by Liz Murray Workout jam: ‘Workout? I so wish that I did,’ she said. Vacation spot: Adirondack Mountains First Cleveland job: Waitress at Oui Oui Café (now Le Petit Triangle Café) in Ohio City Go-to dish to cook: Zucchini noodles, or anything with the Spiralizer

As the leader of Thompson Hine’s Northeast Ohio emerging companies practice, partner Jonathon H. Vinocur helps put the area’s high-growth technology companies on the road to success. We congratulate him on being selected for Who to Watch in Law 2016.

What is the biggest challenge facing Equality Ohio? People sometimes find it hard to believe that it is 2016 and we don’t have basic non-discrimination protections for the LGBTQ community. Eight out to 10 Ohioans don’t know the law does not protect everybody yet. What types of community-based events or organizations do you participate in? I am very involved with my alma mater Cleveland-Marshall. I sit on the board of visitors. I love Cleveland-Marshall, and I love the opportunity it provides for its students to take the law and apply it toward a life of justice.

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Travis joined The Siegfried Group in early 2014 as an Associate Manager and later became a Manager. He graduated from Wright State University with a degree in accounting and finance. “As a Team Leader, I look forward to helping my team members take advantage of Siegfried’s initiatives and intensifying their bigger futures and successes in life,” he said.

STAHLS’ STAHLS’, a global leader in the garment decoration industry, has promoted Jason Ziga to vice president of screen print transfer technology, where he will be responsible for organizing and aiding in the future development of STAHLS’ transfer manufacturing technology capabilities in North America. Ziga will retain his role as general manager of STAHLS’ Transfer Express. As general manager, Ziga has led team members in maximizing production efficiency, quality, customer and resource management.

FINANCE Todd C. Kalish Family Wealth Advisor Morgan Stanley Morgan Stanley announced today that Todd Kalish, a Senior Vice-President and Financial Advisor in the Firm’s Wealth Management office in Cleveland, has attained Morgan Stanley’s Family Wealth Advisor (FWA) designation. The FWA designation is granted to those Financial Advisors who have successfully completed a one year accreditation curriculum. Mr. Kalish has been a member of the financial services industry for 19 years.

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W. Charles (Chas) Geiger III has been elected Chair of the First Federal Lakewood Board of Directors. He has served on the First Federal Lakewood board since 1999. Geiger is president and CEO of Geiger’s, a family-owned chain of clothing and sports stores in Lakewood, Cleveland and Chagrin Falls. First Federal Lakewood is the largest independent depositor-owned bank headquartered in Ohio with assets of $1.6 billion, 18 branch locations and 14 mortgage lending offices throughout Ohio.

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Kyle McChesney Executive Vice President, National Accounts OEC Kyle has been promoted to Executive Vice President, National Accounts and is responsible for overseeing all national accounts activities for OEC. Joining OEC in 2003 as a Territory Development Representative, he quickly progressed within the organization holding senior positions in sales, marketing and product management. Prior to joining OEC, Kyle had several years of experience as an Account Sales Manager for a technology services provider.

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Business of Life

BrewBoat CLE in action on the Cuyahoga River in Cleveland. (Ken Blaze for Crain’s)

BrewBoat stirs things up on the water JEREMY NOBILE

It’s a warm, sunny September evening at the Channel Park Marina. Two fishermen cast off across from the docks where the BrewBoat CLE vessel rocks gently in the water as its duo of captains prep the pedal-powered party boat for the day’s last tour. As 6 p.m. nears, cars start filing in with guests, mostly middle-aged couples. This trip was booked predominantly by the women of the 25X (a reference to their experience, according to their team captain) rowing team of the Western Reserve Rowing Association and their husbands — several of whom are chatty and rosy cheeked, joking around and lobbing footballs in the parking lot as they wait to board the boat with the mustard-yellow canopy. With the rowing season ended, the teammates were looking for activities to bring them together. Being “water people,” as 25X team captain Patty Poole puts it, the BrewBoat seemed liked a natural fit. “We just got to thinking how fun it would be, taking that boat out on the water,” she said. “We also like that it’s sort of an expansion into some more alternative ways to use the river.” BrewBoat CLE is basically what you’d expect — a party on the water. Groups have taken trips for 85th birthday parties, bachelorette parties, wedding proposals, corporate team building events and just for kicks. The 31-foot-long, 10-foot-wide boat offers roughly two-hour tours along the Cuyahoga River. There’s

Above, Captain Katie Litsey prepares for the BrewBoat CLE boat trip at Channel Park Marina in Cleveland. Below, pedal power drives the boat.

music on board, and passengers, up to 14 per trip, bring their own food and booze. There’s a clearly festive vibe. “It was definitely a party,” Poole said after her trip. “We had a blast.” Drinks are spread out inside a long table affixed to the deck that’s lined with ice-filled compartments. Poole’s group brought a picnic-worthy spread of food. Guests sit on large, cushy bicycle seats complete with pedals that turn the boat’s paddlewheel, propelling the craft ultimately controlled by captains Katie Litsey and Edward Broski — both veteran captains of Cleveland’s Nautica Queen dining ship. The tour path begins in Old River and connects to the Cuyahoga River, winding through the Flats, past the

salt mines, flour mill, Merwin’s Wharf and The Foundry. “Once you get to Columbus Road, you can see the city skyline at a totally different angle than you would at any other time,” Litsey said, confessing she enjoys working the BrewBoat because she gets to interact with passengers. “It’s absolutely beautiful.” How far the boat gets before turning back is largely contingent on how much effort is put into pedaling. The boat’s dual solar panels, however, supply a battery-powered backup motor available if riders tire or the boat needs to maneuver away from a freighter in a hurry. BrewBoat CLE is the brainchild of founder Freddie Coffey, who by day is the digital marketing manager for nonprofit JumpStart Inc. He started the business this summer, applying his own capital toward financing the customized $100,000 boat. Coffey said he was researching the pedal-pub concept in June 2015 when he learned about Cascade Cycletours, a company in Bend, Ore. that manufactures these specialty cycleboats — they even have a patent on the pedal-powered paddlewheel

design. With some guidance from the Coast Guard, it wasn’t long before Coffey had a business plan, a vessel and two captains. “I’m just a huge Cleveland fan in general. And I wanted to play a part in the resurgence of the waterfront, which is underutilized, to say the least,” Coffey said. “We just get to be a fun part of that.” He also took the “green” aspect of his business to heart, referencing the pedal concept, the solar-charged motor and recycling efforts. In actuality, there’s nothing officially stopping the BrewBoat from running year-round other than patron interest — well, that and river ice in the winter months. Coffey already has opened up more tours through October because interest has been so high. After a strong first season, Coffey said he’s considering some other themed trips that could materialize this year or next. Ideas for a Halloween cruise have been tossed around. He’s not ready to divulge other plans just yet. Next year’s season is slated to begin May 25, and tours are already being booked. Considering the BrewBoat’s popularity, Coffey is looking into procuring a second vessel, which would allow even more daily cruises and even races between groups. “The reception so far has been really, really great, and we’re really looking forward to next year. We have some sponsorships and activities for the boat next year we’re not quite ready to talk about,” he said. “But they’re going to be a pretty big deal.”

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CRAIN’S CLEVELAND BUSINESS

BUSINESS OF LIFE

Source Lunch Once Heather Roszczyk found her out what her strengths were, she found her dream job. Roszczyk is the Akron entrepreneurship fellow for the Fund For Our Economic Future. But before settling into that role, she took a course through Leadership Akron that had its participants use Gallup’s “StrengthFinders” survey to identify where they excel and where they need work. Roszczyk’s strengths lay squarely in connecting folks and gathering people together behind an idea. When the Fund created a two-year fellowship in July to do just that with Akron entrepreneurs, Roszczyk, a native Northeast Ohioan who boomeranged back after spending time in Portland, Ore., knew it was the right fit for her. After the first few months on the job, said she couldn’t be happier. She works with entrepreneurs to link them to local resources to help them succeed. Part of that is maintaining a website called Akron is for Entrepreneurs that offers tools to help entrepreneurs find assistance. But the main part is getting folks together, opening up dialogue and doing “any small part to help the city.” And true to the survey, her favorite part of the job is connecting with people. “Every single person is extraordinary,” she said. “It’s a matter of finding out ... that extraordinary thing.” — Sue Walton

Why did the Fund for the Economic Future create this role specifically for Akron? The amount of organic growth and activity that’s been happening in Akron over the past three years is staggering. Interest in local food is through the roof, with numbers at farmers’ markets increasing annually and more storefronts like Akron Coffee Roasters and Sweet Mary’s Bakery opening each year. Crafty Mart, which acts much like an incubator for a couple hundred microbusinesses, is seeing record numbers. Fledgling tech companies like TinyCircuits and DesignFlux Technologies are putting Akron on the map (again), both nationally and internationally. Akron is getting as hot as Not Yo’ Daddy’s Hot Sauce — I’m just here to help fan the flames. You spent the first few weeks on the job on a sort of listening tour, talking to entrepreneurs about their needs. What did you learn? Above all else, I’ve learned that we, as a community, are overwhelmingly positive about the entrepreneurship climate in Akron. Despite there being some big needs to address (a commercial kitchen, access to more affordable retail space, etc.), people are excited about the trajectory of the city. Someone who has been working in Akron for 35 years recently told me that he’s heard the word “entrepreneurship” more in the past three years than he has during his entire career. You’ve worked in marketing for Nike and the Akron Symphony

Orchestra. What in your background makes you suited for working with entrepreneurs? At the risk of falling back on overused expressions, I’m a self-starter. I started my career at Nike as a temporary administrative assistant, with no real-world experience and a degree in music. Two years later, I had transitioned into product marketing, and a year after that, I was managing a $500 million global product line. After returning to Northeast Ohio and transitioning to a nonprofit, I worked with a number of entrepreneurs, first in local food at Countryside Conservancy, then in the arts at the symphony. It was in those positions that I started to gain a real appreciation for how many incredible people are making things happen here in Akron. Finally, my husband is an entrepreneur himself, having started his own law firm. Anyone with their own business will tell you that it’s a family affair. I’ve learned firsthand what it takes to make a small business successful. Have you found Northeast Ohio entrepreneurship resource groups to be in silos, so to speak, or territorial? Or are they willing to work together? Truthfully, there’s a bit of both, but I think we’re seeing a big shift toward collaboration. Access to funding is always on everyone’s mind, so sometimes I see a desire to be everything to all people. But organizations are starting to recognize the extreme value in being experts at a few things, and then partnering with other organizations

Heather Roszczyk

to round out the offering. The Women’s Network of Northeast Ohio is a perfect example of this. It is very strong in some areas and is making a conscious effort to reach out to other resource providers, such as Crafty Mart and Bad Girl Ventures, which have complementary strengths. What kind of funding will the new program provide for Akron entrepreneurs? I have a little over $40,000 over the course of two years to fuel initiatives that benefit entrepreneurs. I’m looking toward relatively small expenditures that will help the sector as a whole, or a big chunk of the sector. For example, I’ll be partnering with a couple organizations to launch a storytelling campaign around entrepreneurship. There are so many amazing people in Akron, running exciting businesses. I want them to be recognized and hopefully inspire others to follow in their footsteps. What do you hope to ultimately achieve in your role? I hope that a few more people follow up on their dream to start a business, and I hope that people become more aware of the tremendous success stories we already have in Akron. Of course, I’ll also be working to identify those areas where we need to do a better job of supporting our entrepreneurs, and I hope to set wheels in motion to improve them. But more than anything, I want people to recognize Akron for what it is: a great place to start a business.

ENTREPRENEURSHIP

Five things: FAVORITE PLACE TO VACATION “Anywhere with great camping and hiking! I adore our national park system. We have a map on our dining room wall where we’re marking off the parks we’ve visited.”

FAVORITE RECENT READ “I love to read and you’ll almost never catch me without a book tucked in my bag. While I’m typically not a big Stephen King fan, his ‘11/22/63’ was one of the best books I’ve read in recent years. I actually started reading slower toward the end because I didn’t want it to be over.”

AMAZING ADVENTURE After she graduated from college, Roszczyk and her parents spent 80 days cycling from Delaware to Oregon.

BEST MOVIE QUOTE EVER Anything from “When Harry Met Sally ...” or “O Brother, Where Art Thou?”

SECRET SUPERPOWER She’s a classically trained vocalist and “can bust out a Rossini aria if it’s ever called for.”

Breakfast spot Sweet Mary’s Bakery 76 East Mill Street, Akron 234-706-6088 sweetmarysbakery.com

The meal

A buckwheat and chocolate chip scone, kale and quinoa salad; a maple sausage and cheddar cheese biscuit “sammich;” two coffees.

The vibe

The casual storefront in the heart of downtown is decked out with colorful walls adorned with art for sale. Patrons order delectable treats or quick lunch and breakfast items (soups, quiches, hand-pies) at the counter and grab a table.

The bill

$13.95, plus tip

CRAIN’S CLEVELAND BUSINESS

S E P T E M B E R 2 6 - O C T O B E R 2 , 2 016

PA G E 31

Builders are lagging far behind home demand 9,144

By STAN BULLARD sbullard@crain.com @CrainRltywriter

Strongsville-based Parkview Homes is building about 10 speculative homes yearly, and is finding they sometimes sell them before they’re finished. In some cases, they get a buyer before subcontractors start construction. Ryan Puzzitiello, president of the Home Builders Association Greater Cleveland trade group and a vice president at the family-owned building firm, said it’s a dramatic change from 2009. “When times were tough, our inventory homes would sit,” he said. “Some sat for a year or year-and-ahalf.” Welcome to home building in 2016, when demand is back for properly priced properties and the worry builders face is about the prospects that get away. A just-released study by the National Association of Realtors (NAR) estimates how much unmet demand exists in the country’s Metropolitan Statistical Areas. It estimates how much single-family home permits lag job growth — anemic as it is in the slowly expanding economy — over the last three years. NAR estimates a three-year shortfall in the Cleveland-Elyria-Mentor area of 9,144 single-family homes and in the Summit-Portage MSA, 6,464. Incredibly, for slow-grow Northeast

The number of single-family homes by which the Cleveland-Elyria-Mentor area is estimated to be falling behind in a three-year building cycle, based on NAR estimates.

6,464 The number of single-family houses by which the Summit-Portage Metropolitan Statistical Area is falling short in a three-year building cycle.

80% Percentage of the nation’s MSAs that are lagging in construction of new homes.

Ohio, that is in addition to 7,030 single family permits in the Cleveland-Elyria MSA and 2,142 such permits from 2013 to 2015 as home-building climbed from the cellar. Northeast Ohio is far from alone. NAR reports 80% of the nation’s MSAs are lagging in construction of new homes. Lawrence Yun, NAR chief economist, said a large swath of the country continues to be plagued by inventory shortages exasperated by critically low homebuilding activity. “Inadequate single-family home construction since the Great Recession has had a detrimental impact on the housing market by accelerating price growth and making it very diffi-

cult for prospective buyers to find an affordable home — especially young adults,” Yun said in a news release. “Without the expected pick-up in building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded, despite mortgage rates at or near historic lows.” Although the number of single-family home permits has continued to grow in the region, according to U.S. Census data, the NAR estimate suggests how much the region might be lagging. Puzzitiello considers the estimate on the money. However, Bill Sanderson, president of the Ohio Association of Home Builders trade group and vice president of development at Concord-based Knez Homes, said the statistic may be of limited value but underscores national trends long identified by the National Association of Home Builders and banks showing that between destruction of old or empty houses and population growth, the nation is under-producing homes. He notes MSAs and markets within them vary greatly. “The where,” Sanderson said, “is still vastly more important than the how many.” Reasons for why no more homes are going in are easy for builders to identify, from lack of land in high-demand suburban areas, little new-lot creating in land-rich areas, rising building costs and a growing perception of a labor shortage in home-building, which is typically

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A misconception about loans for buying newly built homes may also be a factor. Puzzitiello said mortgages for new homes are available for as little as 5% or 10% down, though good credit is necessary. Well-heeled buyers who can sell their houses to move up, he said, unlike during the downturn stay put now because they can’t find the right house. Some move in with family until a new house is ready. Or rent. The big question in the region is whether young home buyers currently renting in downtown Cleveland or close-in suburbs will buy there or head for outlying areas. “Will they choose Cleveland, Lakewood or Shaker, or skip right over the inner rings and move to Avon, Avon Lake, Perry or the Olmsteds (Falls and Township), where there are both good schools and some available lots for production pricing given the stilllow interest rates?” Sanderson asked. “This will indicate if the ‘anecdotal shift’ to city living is real or a shortlived trend related to the downturn and other factors. We think in-demand locations will remain in demand. But you always have to wonder about secondary locations (with abundant land.)” Even with these concerns, these are better problems for home builders to have than they did in the long housing bust that trimmed their ranks. “When we go into meetings at HBA,” Puzzitiello said, “everyone’s smiling. Everyone’s busy.”

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non-union. Puzzitiello said his firm would build and sell more homes if it could find the build-ready lots for them, and he knows that is true of many of his peers. “Good land is still in short supply, and selling at a premium where available,” Sanderson said. He noted the trend may again feed the move to more remote land-rich areas. High-volume builders, usually national builders, “are starting to go further afield (or turn toward the cities) to find the lots they need to fulfill their plans,” Sanderson said. “Production builders seem to have a pretty serious constraint on what they can pay for a lot compared to what the bulk of qualified buyers can or will pay for a home and still make their margins. The thing that can give is raw land pricing and thus, further-out locations have increased demand.” National builders have their own corporate sources for buying land and installing streets and utilities. Local builders still face challenges getting acquisition and development loans, although lending has eased up, because of post-2008 banking regulations limiting risk. Land developers still use private equity to ready new subdivisions, Puzzitiello said, and home builders use private equity to fund speculative homes as banks usually fund just one at a time. Those techniques grew during the recession, when lending was scarce.

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4:52 PM

Page 1

Adam Kaufman Lists And Sells The Hom

Hunting Valley

Price Upon Request

"Rose Hill Manor"--An iconic Hunting Valley Estate sited on the most extraordinary 5+ acre parcel offering unparalleled luxury and amenities second to none! The English Country Castle spans over 17,000 sq. ft. on three levels and is built with the finest of everything including walnut floors, state of the art systems, and a walk-out lower level that is second to none! Entertain in the most spectacular 3 story grand hall with fabulous bar and stone fireplace or the banquet size formal dining room! The grounds are unparalleled--Infinity pool, elaborate stone terraces, tennis court, volleyball court, a private outdoor chapel, and gardens that will take your breath away!

Shaker Heights

$4,995,000

One of Cleveland's most remarkable and iconic homes the "White House" is a gated enclave sited on a park-like parcel offering sweeping views and incredible privacy yet within the heart of Shaker Heights and minutes to University Circle and Downtown Cleveland. The Georgian revival is a masterpiece eloquently blending traditional design with every modern amenity and luxury! Extraordinary formal main rooms, a spectacular great room with bar, chef's dream kitchen with hearth room, and exquisite library showcase the first floor! The second floor is highlighted by private suites including the most luxurious master wing with his/her baths and dressing rooms plus a private library! A separate guest suite/apartment, fully finished lower level, and beautiful pool area too!

Novelty

$4,750,000

Remarkable 160 acre property consisting of 4 parcels just East of 306 on the north side of Music Street offering multiple opportunities for someone seeking one of the last truly amazing larger parcels! Privately held for several generations, this property is extraordinary in beauty and remarkable in it's forest growth, tillable acreage, and has remained intact! The North frontage backs up to the vast woods--A 902 acre park. There is a main house that has been currently updated and a barn! Offering immense and varied possibilities, this is a truly extraordinary offering!

Gates Mills

Price Upon Request

One of the most outstanding estate properties in Northeast Ohio, "Fox Run" encompasses 37.5 breathtaking acres backing onto the Chagrin River and offers complete privacy and every imaginable luxury for the discriminating buyer! The main house circa 1929 is an English country house that has over 20,000 square feet is exceptionally renovated, and flawlessly expanded. Highlights include the most luxurious first floor master wing, indoor pool, state of the art exercise facility, theater, grand formal dining room, octagonal great room, a gourmet dream kitchen, and exquisite wood and plaster detailing throughout! Outdoor living is unequalled with a pool, cabana, and terraced stone veranda. A separate guest house/apartment and a total of 8 car garages as well!

Hunting Valley

$4,995,000

One of the most remarkable and truly spectacular estates in Northeast Ohio located in the heart of Hunting Valley with breathtaking views and Chagrin River frontage! Extraordinary amenities including an indoor sports complex with pool, tennis court/basketball court, full kitchen, exercise room, guest suite, spa and more! The main house is a magnificent brick Georgian manor with a stone terrace featuring the most extraordinary infinity pool and hot tub with unobstructed views of the valley! The interior is designed for entertaining and luxury living with exceptional bathrooms, kitchen, and a casual yet sophisticated environment!

Avon Lake

$4,285,000

Beyond comparison, this lakefront estate is truly extraordinary! The Custom built brick and stone Georgian Manor designed is for luxury living and entertaining! Every imaginable amenity is found within including the highest level of quality finishes, state of the art systems, and an elevator to all 4 levels! Highlights include a state of the art theatre, 2000+ bottle wine cellar, golf putting green and simulator, luxurious first floor master suite and incredible dream kitchen! Wide open expansive rooms with glorious lake views are designed for entertaining! Extraordinary exterior with Infinity pool, hot tub, lake access with boat hoist and outdoor entertaining second to none!

e Homes In The Most Affluent Suburbs!

Waite Hill

$3,995,000

Avon Lake

$3,995,000

Gates Mills

$3,795,000

Hinckley

$3,750,000

Hunting Valley

$3,495,000

Hudson

$2,995,000

Russell

$2,875,000

Bratenahl

$2,795,000

Richfield

$2,595,000

Kirtland

$2,295,000

Moreland Hills

$2,295,000

Bainbridge

$1,995,000

Russell

$1,895,000

Chagrin Falls

$1,895,000

Gates Mills

$1,825,000

Kirtland Hills

$1,800,000

A true estate--incomparable in terms of quality, architectural integrity, and setting! Sited on approximately 42 magnificent acres, Cobblestone Estate has been restored to utter perfection maintaining all its architectural integrity yet offering every imaginable luxury and modern amenity! Extraordinary drive and approach, incomparable landscape and a pool house/entertainment complex and pool second to none!

Paskevich designed and built by P & T Builders this stone and shingle English manor is an extraordinary home sited on a breathtaking almost 8 acre parcel in the heart of Hunting Valley! This gated estate offers every imaginable luxury including a spectacular pool house/guest house, stunning grounds, 3 gated entrances and garages for 7 cars! The interior is extraordinarily elegant featuring meticulous craftsmanship.

Situated in the most spectacular 40 acre enclave offering privacy and spectacular views of woods and a breathtaking 3 acre lake, this stone and shingle Paskevich designed manor home is truly extraordinary! Built with the finest of everything and offering every imaginable luxury, this home lives and entertains flawlessly! Highlights include the most incredible dream kitchen with state of the art amenities,and a first floor master suite.

Remarkable property--Approximately 52 acres of magnificent property with frontage on the Chagrin River! Incredible equestrian facility with indoor arena and multiple fenced pastures! Extraordinary custom designed Georgian colonial that is absolutely magnificent. Elegant beyond comparison with a fabulous floor plan and attention to detail. An extraordinary kitchen opens into the 2-story family room and gracious formal main rooms are superb for entertaining.

A masterpiece on the lake--over 2 acres offering spectacular unobstructed views from this magnificent all brick Georgian Manor with quality and luxury beyond compare! The interior of this home is remarkable offering both 1st and 2nd floor master suites, walk-out lower level with basketball court, state of the art exercise facility, and a movie theater! Incredible kitchen, and spectacular glass walled great room.

Absolutely extraordinary gated enclave backing onto the Cuyahoga Valley National Forest offering every amenity and luxury imaginable! The main house is a stone manor home built with the finest materials and designed for entertaining and easy living! Highlights include the most spectacular kitchen, a first floor master suite second to none, and the most impressive walk-out lower level with family room, and bar area.

A Landmark Estate--Playmore is a truly one of a kind property with sweeping views of the valley all the way to Lake Erie! A long private winding drive leads to this stone English Country Manor built in 1929 and renovated/expanded by present owner to perfection! Indescribable carved woods,ceiling frescos,and imported marble floors throughout the home! A spectacular 3-story reception hall, grand salon, and the most incredible kitchen!

One of the most notable historic homes in the village of Chagrin Falls sited on the most spectacular lot with breathtaking views of the river and waterfalls! The present owner has invested over $1.5 million in improvements including a magnificent master suite addition and outdoor living areas that are beyond description! Painstakingly restored from top to bottom, this incredible home maintains all of the charm of a century home but flawlessly incorporates every modern convenience.

Truly an outstanding property with views of the Chagrin River that are second to none!! This all stone manor home sited on 26 acres is an architectural masterpiece offering every imaginable luxury and amenity coupled with quality beyond compare! The home is designed so that every room can take in the breathtaking outdoor scenery from walls of windows and stone terraces!

Absolutely extraordinary classically modern home designed by Ron Reed and constructed with the finest materials sited on almost 7 breathtaking acres with large lake. Truly a work of art, this home is designed for entertaining and the flawlessly executed floor plan is highlighted by walls of glass and exquisite dĂŠcor! A 2-story great room is second to none featuring a floating bar, incredible fireplace, and stone floor!

Truly the most spectacular home built with the finest of everything! A grand presentation constructed from Jerusalem stone and set on a magnificent 5 plus acre parcel. The entry rotunda will take your breath away and the entire first floor features polished porcelain floors and grand scale rooms! Entertain in the lavish great room or banquet size dining room and retire to the most luxurious first floor master suite with lavish glamour bath!

The most spectacular valley view in Northeast Ohio--unobstructed and truly breathtaking--beyond description!! A once in a lifetime opportunity to own this home on this special and one of a kind almost 17 acre enclave offering indescribable vistas over the Chagrin Valley and backing on the Chagrin River! The rear of this property faces due West and the sunsets are magnanimous 365 days a year! A private wonderland with main house, caretakers cottage and an incredible 2-story barn/hobby garage with multiple purposes!

When buying or selling your home.

Just ASK Adam S. Kaufman 216.831.7370 Company Top Producer 2002-2015 #1 State of Ohio www.justaskadam.com

3550 Lander Road â€˘ Pepper Pike

Hinckley Equestrian Center is a remarkable state of the art facility situated on 37.5 acres (additional land available),minutes from the Metro Parks and accessible to all major highways. Constructed in 2007, this facility is truly amazing offering 41 stalls, two indoor arenas(100x200 and 70x100), and every amenity imaginable for the perfect equine environment! Amenities include 2 wash racks, 4 tack rooms, and security monitoring.

A truly magnificent estate sited on approximately 3 glorious acres overlooking Lake Erie offering stunning views and privacy! This French Normandy circa 1923 was designed by James Hamilton and is an architectural masterpiece but has been thoughtfully modernized offering every luxury and today's amenities! Highlight of this one of a kind home includes an indoor and outdoor pool, and private beach.

Beyond spectacular, this one of a kind home sits on almost 5 acres with glorious lake views and a setting second to none! Designed with every luxury and amenity, this Mediterranean inspired masterpiece is truly one of a kind! A wide open floor plan highlighted by soaring ceilings, walls of windows, and gorgeous lighting is designed for grand scale entertaining! The highlights of the first floor includes an opulent master suite.

Spectacular custom built manor house sited on a magnificent 5 acre parcel landscaped to perfection offering privacy and tranquility! The grand marble entry will take your breath away and opens onto the spectacular 2-story great room and grand formal dining room! Entertaining is made easy from the chef's kitchen to the butler's pantry. A hearth room/family room, glass walled sun room with bar, and extraordinary paneled library plus luxurious 1st floor master suite opening onto the stone terrace!

PA G E 3 4

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CRAIN’S CLEVELAND BUSINESS

TRIBE

Season-ticket sales A look at the Indians’ season-ticket holders since 2007, according to Crain’s reporting over the years:

CONTINUED FROM PAGE 1 League Championship Series, the team had 15,000 season-ticket holders and averaged more than 27,000 fans per game. This season, even as the club has been among baseball’s best from June on, the Indians’ attendance norm heading into the final weekend series was 19,442. The average marked a 9.2% jump from 2015, an improvement that was the third-largest in MLB, but still ranked above only the Oakland Athletics and Tampa Bay Rays. The reasons for the club’s attendance problems have been well-chronicled, but a key factor in the Indians’ low numbers this season is they started the 2016 campaign with about 8,700 FSEs. (For accounting purposes, four fans who purchase 20-game ticket plans would count as one season-ticket holder, since the Tribe has 81 home games to sell.) The season-ticket base has hovered in the 9,000 range for each of the last two seasons, which is about 1,000 above the 2014 total and 3,000 ahead of 2012, but well below many other big-league clubs. Salcer said the recent sales surge — which has been boosted by fans being guaranteed the first chance to purchase 2016 playoff tickets — means the Indians are “far ahead of where we were last year.” The club’s season-ticket holders have renewed their seats at a 95% rate, and the Tribe is already approaching 9,000 FSEs for 2017 — with a postseason trip and an entire offseason still ahead. “Everything is going well,” Salcer said.

‘Good product to sell’ The Indians’ relatively low season-ticket base is most often evident during weeknight home games in the spring, when school is still in session

2007:

13,000

2012:

6,000

2008:

15,000

2013:

7,500

2009:

11,700

2014:

8,000

2010:

8,000

2015:

9,000

2011:

7,500

2016:

8,700

Note: The Indians are already approaching 9,000 full-season equivalents for 2017.

Brandon Guyer is doused after a recent Tribe win. (Ken Blaze for Crain’s)

and the weather often is less than pleasant, and late summer/early fall, after school has resumed, football season has started and schedules get even more hectic. From July 4 to Aug. 15, the Indians had eight Monday-Thursday home games draw more than 19,000 fans, and five of the eight crowds were above 23,000. Conversely, the team’s 13 Monday-Thursday games at Progressive Field from April 5 (the day after the home opener) to June 2 produced an average crowd of 11,009. The 10 Monday-Thursday games from Aug. 29 to Sept. 22 weren’t much better — an attendance norm of 12,926, and all but two of the games under 14,000.

A large season-ticket base protects a team on nights such as those, when the weather or opponent might not be as desirable, and the demand is much lower. Jim Kahler, the executive director of the Center of Sports Administration at Ohio University and a former Cavaliers senior vice president of sales and marketing, said being able to offer postseason priority is an easy way for teams to give their season-ticket sales a jolt. “I think it’s huge,” Kahler said. “There’s only so many teams that are going to make the playoffs. When teams haven’t been there in a while, it becomes bigger. There’s no better time to renew a season-ticket base

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and acquire new season-ticket members than a playoff run.” Kahler said teams that renew their season-ticket holders at a 90%-or-higher rate are in the best position to grow their base. “If you lose more than 15% of your season-ticket base, the demand just isn’t going to be there (for it to increase),” Kahler said. The Indians shouldn’t have to worry about that type of attrition following a season that could produce their largest win total in nine years. Salcer — who, like many members of the Tribe’s business team, has a background in consumer goods — says the exciting, young team is the organization’s greatest selling point. “I would say selling a good product is the same for any company,” said Salcer, who spent 14 years at Chattem Inc. before joining the Tribe after the 2014 season. “You have a good product to sell, which we obviously do, with four consecutive winning seasons and pushing it to the next level with playoffs (in 2016). We’re hoping to capitalize on that and help drive the attendance, and build a great atmosphere for this team, which deserves it.”

Turning back the clock Kahler said one of the Indians’ biggest obstacles is “the number of occurrences” — i.e., their 81 home games.

“If you could ever inherit a pro franchise, you want to inherit an NFL team,” the former Cavs VP said. “You only have eight games and two preseason games to sell. You start playing 80-plus games, that’s a lot of seats to fill.” Troy Kirby — the founder of the National Association of Athletic Ticket Sales & Operations, and better known for his Tao of Sports website and podcasts — says a problem many professional sports teams run into is that by pushing season tickets, “they are still trying to find a long-term solution with people who want one-offs.” Giving season-ticket holders increased access is great, he says, but there’s also “an assumption that will lead to them buying in a huge swath. I think that swath-type mentality is over.” Any business, though, obviously would prefer to sell something — whether it be a ticket or a product — in large amounts, and season tickets, as former Tribe president Mark Shapiro liked to say, “represent the greatest certainty” in an MLB market that is too often unpredictable. Playoff priority is one of many incentives the Indians use to bring in season-ticket holders (others include the first crack at Opening Day seats, cheaper per-game prices, autograph sessions with players, team shop discounts and STH-specific gates). In this case, though, nine years removed the organization’s last division title, it might be the most coveted thing the club can offer, aside from a guarantee that Cleveland’s championship “streak” will extend to a second season. Salcer said a lot of the Tribe’s customers are purchasing 20-game plans for 2017, or partnering on a full-season plan and splitting the tickets among a group. The latter move was popular in the 1990s, when the Tribe made two World Series trips in three years and routinely sold out then-Jacobs Field. “We’re excited to see them doing something similar now,” Salcer said.

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3:14 PM

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CRAINâ€™S CLEVELAND BUSINESS l SEPTEMBER 26 - OCTOBER 2, 2016 l PAGE 35

The List

NORTHEAST OHIO'S WEALTHIEST SUBURBS Ranked by Median Household Income POPULATION

HIGHEST DEGREE

HOUSING

MEDIAN HOUSEHOLD INCOME

MEDIAN OWNEROCCUPIED HOUSING VALUE

5-YEAR ESTIMATE (2010-2014) (1)

2010 CENSUS

% CHANGE SINCE BACHELOR'S CENSUS (DECREASE) %

POST-GRAD NUMBER OF OWNER % UNITS %

RENTER %

AVERAGE TRAVEL TIME TO WORK (MINUTES)

Hunting Valley

$250,000 (2)

$1,000,000 (3)

750

707.0

6.1

38.0

47.2

322

89.7

10.3

26.7

Cuyahoga (4)

Bentleyville

$156,250

$546,100

882

864.0

2.1

32.1

44.4

311

96.3

3.7

28.4

Cuyahoga

Kirtland Hills

$138,542

$567,300

690

646.0

6.8

27.0

24.5

274

93.2

6.8

29.0

Lake

Pepper Pike

$131,976

$427,700

6,079

5,979.0

1.7

28.3

43.2

2,368

95.3

4.7

23.5

Cuyahoga

Hudson

$123,324

$294,000

22,351

22,262.0

0.4

40.2

29.6

7,887

86.2

13.8

28.1

Summit

Gates Mills

$123,009

$445,300

2,250

2,270.0

(0.9)

33.5

31.6

944

95.1

4.9

27.7

Cuyahoga

Moreland Hills

$121,875

$374,900

3,305

3,320.0

(0.5)

43.2

30.3

1,331

90.9

9.1

27.4

Cuyahoga

Waite Hill

$118,750

$611,100

441

471.0

(6.4)

33.8

36.8

210

85.4

14.6

24.7

Lake

South Russell

$110,208

$318,300

3,840

3,819.0

0.6

49.0

26.8

1,461

93.7

6.3

31.7

Geauga

Highland Heights

$102,338

$248,600

8,324

8,345.0

(0.3)

30.5

24.2

3,222

91.9

8.1

21.0

Cuyahoga

Orange

$100,500

$306,100

3,292

3,323.0

(0.9)

35.7

35.0

1,377

88.5

11.5

20.0

Cuyahoga

Silver Lake

$97,969

$197,100

2,520

2,519.0

0.0

38.2

21.3

1,094

92.7

7.3

19.1

Summit

Sugar Bush Knolls

$96,667

$270,500

158

177.0

(10.7)

30.6

33.9

88.7

11.3

22.1

Portage

Boston Heights

$95,000

$328,100

1,302

1,300.0

0.2

27.2

17.5

474

92.2

7.8

22.0

Summit

Solon

$94,925

$266,900

23,177

23,348.0

(0.7)

29.1

28.2

8,721

85.3

14.7

25.7

Cuyahoga

Brecksville

$93,409

$243,100

13,543

13,656.0

(0.8)

29.3

23.0

5,601

83.4

16.6

23.5

Cuyahoga

Bratenahl

$89,375

$264,500

1,169

1,197.0

(2.3)

28.4

42.5

813

83.5

16.5

18.9

Cuyahoga

Bay Village

$87,942

$203,400

15,508

15,651.0

(0.9)

35.6

22.8

6,317

91.8

8.2

24.7

Cuyahoga

Beachwood

$83,125

$274,800

11,855

11,953.0

(0.8)

25.9

32.4

5,239

61.3

38.7

21.5

Cuyahoga

Avon Lake

$81,840

$208,400

22,881

22,581.0

1.3

32.2

18.4

9,000

80.0

20.0

26.2

Lorain

Kirtland

$81,825

$267,200

6,838

6,859.0

(0.3)

23.1

17.3

2,705

85.0

15.0

25.0

Lake

Aurora

$80,831

$245,500

15,568

15,548.0

0.1

27.8

20.3

6,497

78.7

21.3

26.3

Portage

Macedonia

$80,825

$184,600

11,364

11,188.0

1.6

26.0

14.2

4,553

91.2

8.8

23.9

Summit

Valley View

$79,375

$240,900

1,975

2,034.0

(2.9)

19.5

8.3

772

87.8

12.2

23.5

Cuyahoga

Broadview Heights

$79,213

$215,500

19,309

19,400.0

(0.5)

25.8

22.0

8,044

82.6

17.4

28.1

Cuyahoga

Avon

$78,839

$243,800

21,783

21,193.0

2.8

29.2

19.6

7,953

79.2

20.8

26.0

Lorain

Strongsville

$77,849

$192,700

44,649

44,750.0

(0.2)

27.1

16.9

18,282

80.6

19.4

27.3

Cuyahoga

Glenwillow

$77,125

$239,600

1,085

923.0

17.6

21.6

18.3

416

92.3

7.7

22.8

Cuyahoga

Westlake

$76,250

$226,900

32,513

32,729.0

(0.7)

33.0

20.6

14,732

74.5

25.5

24.3

Cuyahoga

Independence

$75,724

$216,300

7,136

7,133.0

0.0

22.7

13.6

2,789

94.3

5.7

20.6

Cuyahoga

Shaker Heights

$75,177

$217,600

28,071

28,448.0

(1.3)

26.1

39.6

12,882

62.8

37.2

22.8

Cuyahoga

Mayfield Village

$74,857

$227,800

3,432

3,460.0

(0.8)

34.6

21.3

1,478

73.7

26.3

24.6

Cuyahoga

Reminderville

$74,353

$172,000

3,630

3,404.0

6.6

20.4

18.3

1,418

86.2

13.8

28.6

Summit

Westfield Center

$73,807

$203,200

1,212

1,115.0

8.7

24.4

10.1

554

84.5

15.5

27.5

Medina

Walton Hills

$72,462

$193,700

2,272

2,281.0

(0.4)

18.2

6.7

934

97.8

2.2

25.0

Cuyahoga

Richfield

$71,938

$244,600

3,661

3,648.0

0.4

31.9

14.2

1,433

90.1

9.9

25.3

Summit

Olmsted Falls

$70,198

$149,700

8,943

9,024.0

(0.9)

22.4

12.9

3,706

82.0

18.0

28.8

Cuyahoga

Twinsburg

$69,778

$206,300

18,784

18,795.0

(0.1)

27.7

16.0

7,678

74.0

26.0

25.5

Summit

North Royalton

$69,126

$193,500

30,353

30,444.0

(0.3)

21.7

14.3

13,078

71.8

28.2

27.6

Cuyahoga

Mentor

$67,983

$166,900

47,008

47,159.0

(0.3)

20.8

10.5

20,472

85.1

14.9

23.6

Lake

University Heights

$67,971

$160,100

13,404

13,539.0

(1.0)

30.6

33.1

5,412

66.5

33.5

21.9

Cuyahoga

Seven Hills

$67,786

$164,200

11,735

11,804.0

(0.6)

23.1

10.5

5,100

94.2

5.8

25.8

Cuyahoga

Sheffield Village

$66,917

$186,800

4,004

3,982.0

0.6

14.7

10.7

1,597

78.3

21.7

24.3

Lorain

North Ridgeville

$66,746

$157,800

30,680

29,465.0

4.1

18.0

9.6

11,954

85.6

14.4

26.9

Lorain

THIS YEAR COMMUNITY

1 2 3 4 5 6 7 8 9 10 11 12

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

35 36 37 38

COUNTY

RESEARCHED BY CHUCK SODER Source: U.S. Census Bureau 5-year American Community Survey (2010-2014). Includes data from Cuyahoga, Lorain, Medina, Summit, Portage, Geauga and Lake counties. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Business lists and The Book of Lists are available for purchase at www.crainscleveland.com. (1) Surveys are conducted throughout the period. Estimates for smaller communities tend to be less reliable. Margin of error information can be accessed through the U.S. Census Bureau FactFinder database. (2) Income exceeds $250,000. Census database would not report a higher number. (3) Value exceeds $1 million. Census database would not report a higher number. (4) Part of Hunting Valley is in Geauga County.