EACH WEEK DON’T MISS OUT ON CRAIN’S SPECIAL REPORT!
BROUGHT TO YOU BY:
WEEKLY FOCUS: TECHNOLOGY, Page 10 VOL. 40, NO. 11
MARCH 18 - 24, 2019
Source Lunch
Akron Zips are losing a heavy hitter in polymer research. Page 16
Middlefield Banc Corp. president and CEO Thomas Caldwell Page 19
CLEVELAND BUSINESS
The List Largest local software developers Page 15 SPORTS BUSINESS
ECONOMIC DEVELOPMENT
Next AD is crucial hire for Vikings
THE AMAZON INCENTIVE
By Kevin Kleps kkleps@crain.com @KevinKleps
gave them six weeks to reply. Since its eight-page request for proposals asked communities to “think big and creatively,” and have their responses in the Seattle-based company’s hands in only six weeks, it gave Northeast Ohio’s public and private development operations a need to work well collaboratively, something that hasn’t always been easy to achieve here. It even looked at first like the community might not come together. Shortly after Amazon made its announcement, Crain’s reported that there were several groups in the region preparing separate proposals. Though only one proposal ended up in Amazon’s hands, the possibility the region could produce multiple bids reflected the discord that existed among organizations.
Harlan Sands’ Twitter account shows a flurry of activity — on and off campus — that suggests a hectic first nine-plus months on the job as the president of Cleveland State University. One of Sands’ key duties, however, is taking place behind the scenes, Sands as the Vikings search for a new director of athletics. The role has been vacant since Mike Thomas resigned late in 2018, not even 22 months into a five-year contract. Sands said he’s looking for “a partner” — someone who can help to elevate the profile of the university through athletics, which he describes as “the front door” of an institution such as CSU. “This is a program that has incredible potential, and we need to find the candidate that has the right mix of the typical athletic director know-how, but also a business sense,” Sands said. The CSU president hopes to hire Thomas’ replacement early this spring. The new appointee is going to have a lot on his or her to-do list, from managing a budget that is heavily reliant on school funding, to the future of the 28-year-old Wolstein Center and a men’s basketball program that has averaged only 10 wins per season in the last four years. Sands — who was a chief financial officer, among other duties, in stops at The Wharton School at the University of Pennsylvania and the University of Louisville prior to being hired by CSU — is “a finance guy.” There’s a tendency, he said, to look at the AD position from a “revenues-and-expenses” perspective. That, for a midmajor university such as CSU, isn’t all that enthralling, since 86% of the Vikings’ 2017-18 athletics budget of $13.7 million was paid by student fees and other school funds.
SEE AMAZON, PAGE 18
SEE CSU, PAGE 19
Properties in the Amazon HQ2 pitch Initial build-out Full build-out Amazon Villages Additional development
Long-shot HQ2 bid taught NEO’s public and private sectors to work collaboratively By Jay Miller jmiller@crain.com @millerjh
Entire contents © 2019 by Crain Communications Inc.
P001_CL_20190318.indd 1
Convincing Amazon.com Inc. to bring a major company headquarters operation to Northeast Ohio may have been wishful thinking. In fact, it probably was wishful thinking for all but a few of the 238 communities that responded to the online retail behemoth’s request for bids, Cleveland included. On Sept. 1, 2017, Amazon announced that it was searching for a location for its second headquarters. The retailer said its new headquarters would come with 50,000 new jobs and a $5 billion investment in the new home city. It asked for proposals, bids really, from communities that wanted Amazon to come to town and
3/15/19 3:01 PM
PA G E 2
|
M A R C H 18 - 2 4 , 2 019 |
CRAIN’S CLEVELAND BUSINESS
Ohio is missing out on lucrative hemp industry By Jeremy Nobile
U.S. hemp industry expected to grow
jnobile@crain.com @JeremyNobile
As legal and regulatory barriers are removed, the U.S. hemp industry is estimated to grow to a $1.9 billion market by 2022. $800M
’17 ’22
700
Hemp sales by category
Serial cannabis entrepreneur Garett Fortune may call Northeast Ohio home, but he’s been forced to build his hempire elsewhere because of Ohio laws — or rather, the absence of them. Fortune is chairman of Rocky River-based Capital G Ltd., the parent company of a variety of brands serving the hemp and marijuana industries. His businesses include FunkSac and HempSac, which provide smell-proof packaging manufactured in Cleveland to marijuana and hemp companies. There’s also Commodigy, which Fortune founded in 2009 as a nationwide exchange for recyclable materials. In the last couple years, he rebranded that operation as a buying and trading platform for hemp in response to market trends. Commodigy now includes a $5.5 million lab in the Las Vegas area, where hemp purchased from farms in Nevada, Colorado, Oregon, Kentucky, New York and even Canada is processed for cannabidiol (CBD) extracts. Those extracts are supplied to manufacturers who infuse other products with them, from lotions to seltzer water. With a business strategy firmly rooted in hemp and orders piling up for packaging and CBD isolates, Fortune is projecting revenue growth of some 1,000% this year. Now in expansion mode, one of his goals is to build a second CBD plant in Kentucky to service demand along the East Coast.
600 500 400
Food Hemp-derived CBD Personal care Supplements Consumer textiles Other consumer products Industrial applications
300 200 100 0
SOURCE: Hemp Business Journal estimates
He would’ve tried to do that in Ohio, but he simply can’t. That’s because the Buckeye State is one of just 15 in the country that have neglected to develop a hemp program, something that’s been permitted since the passage of the 2014 Farm Bill. “I would love to put that in Ohio. And we have lots of people who want to grow (hemp) here,” Fortune said. “But since Ohio doesn’t have a program yet, we can’t.” While there are efforts underway to create a regulatory framework for hemp here under Ohio Senate Bill 57, Fortune isn’t waiting around for that. “We need to cover East Coast operations. Investors wanted to be in Ohio, and we would be if Ohio would’ve had their stuff ready,” Fortune said. “But because there are no regulations and no pilot program, we
are going to states that already have that established.” Hemp is hardy and easy to grow. Its fibers have a wide variety of uses, from clothing to construction materials to paper. Hemp seeds are processed for CBD extracts, which are increasingly popular because of their uses in treating a host of ailments from arthritis pain to anxiety. The 2018 Farm Bill officially descheduled hemp, opening up the industrial hemp sector and legitimizing hemp programs in states that launched them years ago. It also paved the way for the USDA to set parameters for CBD extracts in food and drink. Gary Pierzynski, associate dean for research at the College of Food, Agricultural and Environmental Sciences at The Ohio State University, said hemp qualifies as a high-value crop,
a term applied to plants where gross revenue per acre is about double that of traditional commodity crops. Chip Kepford, who grows corn, wheat and soybeans on a 5,000-acre family farm in Marion, said he would replace everything with hemp if he could. But farmers and other aspiring hemp businesses in states like Ohio are left in the lurch because there is no regulatory framework for it. “Ohio never created a pilot program,” said Thomas Haren, executive vice president of the recently formed Ohio Hemp Association. “Now we need to create a hemp program or be cut out of the market, and Ohioans will miss out on an immense opportunity.” Pierzynski, meanwhile, can’t work with the plant or study it at the college for the same reasons. He joined OSU in July. By August, he was already fielding inquiries from companies in Kentucky that wanted to work with OSU faculty to develop Ohio crops. “I had to say we can’t accept that at this time,” said Pierzynski, who has no affiliation with the hemp trade group. “Ohio has been kind of on the sidelines with this, and now it’s at risk of getting left behind.” Those fears of being left in the dust are creating a sense of urgency, even though S.B. 57 was introduced in February. The bill would allow for industrial hemp cultivation along with possession, shipping and sales of the plant and its derivative products, including CBD oils or CBD-infused products, which under current Ohio laws are only allowed to be sold legally through the nascent medical marijuana sec-
tor’s state-licensed dispensaries. While there’s no timeline for when the bill may be passed, “make no mistake about it, there’s momentum behind hemp legislation in Columbus,” Haren asserted. “And once the USDA finalizes rules and we have a clear regulatory structure in Ohio, we are all going to see an enormous amount of activity within our research institutes and private sector, such as (Scotts Miracle-Gro Co.),” added Jen Lynch, Ohio Hemp Association president. But until rules are in the books, Ohio is missing out on an industry that saw an estimated $1 billion in product sales in the U.S. in 2018, according to New Frontier Data, which estimates the industry could easily grow to $1.9 billion in 2022. Projections vary, of course. Analysts at the Brightfield Group have issued a much loftier forecast, projecting hemp as a $22 billion industry by 2022. Brightfield’s head of research has acknowledged that such estimates are “shocking,” but added that “we stand by them.” Whatever the growth may be, it’s sure to be significant. And until Ohio supports the hemp sector legislatively, folks like Fortune will simply look for ways to tap into this growing, lucrative industry elsewhere. “You’re missing out on tax revenue, on jobs, the education, the farms and the agricultural side being able to farm hemp instead of soybeans and corn,” said Fortune, an Ohio Hemp Association board member. “Hemp is something they’re all going to immediately make money on. It’s a cash crop.”
THE WRONG WAY. AT CYBERSECURITY YOU’RE LOOKING DISCOVER THE RIGHT WAY. Protect your data and reduce business risk with our holistic Chain-of-CustodySM solutions.
Learn more at mcpc.com/chainofcustody Data Security Starts Here.
P002_CL_20190318.indd 2
3/15/19 11:35 AM
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
|
PA G E 3
Schools are working to break down the ‘silos’ By Rachel Abbey McCafferty rmccafferty@crain.com @ramccafferty
Northeast Ohio’s community colleges and public, four-year universities are finding more and more ways to work together. Last October, Kent State University and Eastern Gateway Community College announced a new partnership that would allow Eastern Gateway students to earn some bachelor’s degrees without leaving their campus. The University of Akron and Stark State College announced a dual admission and enrollment program that would allow students to use amenities and facilities on both campuses. In February, Cleveland State University announced a new program with Cuyahoga Community College that will give students access to resources at the university. In March, Cleveland State announced a similar program with Lorain County Community College, which will let LCCC students take Cleveland State courses before they transfer. In many ways, these programs are a natural next step for the region’s schools, which have long had transfer agreements and partnerships that allow four-year universities to offer degrees on community college campuses. For example, Lakeland Community College in Kirtland hasn’t announced any major new collaborations with four-year universities recently, but it does have a substantial existing partnership program. Some of the university courses, which lead to degrees, are offered online or through video distance learning, while others are face-to-face, with instructors visiting Lakeland’s campus. “It’s their course, their tuition, their students. They’re just here on our campus,” said Barbara Friedt, associate dean for applied studies. She said that although those students are no longer Lakeland students, giving them access to bachelor’s, master’s and doctorate programs close to home helps the college meet its mission. The college’s constituents had expressed that as a need, so the college found a way to meet it. And this setup is similar to the one Kent State University will offer at Eastern Gateway Community College, which has campuses in Steubenville and Youngstown. The program is new, and decisions on how each class will be offered will be made as it grows. To lessen transportation issues for students, Kent State may teach courses on the community college campus or offer online or virtual learning courses, said Nathan Ritchey, vice president for Kent State System Integration and interim dean of the Regional College. Instructors could be drawn from existing faculty, or new ones could be hired, he said. If the course is on Eastern Gateway’s campus, revenue and costs have to be split, Ritchey explained. Eastern Gateway maintains the classroom and should be reimbursed, and Kent State is paying the instructor, so the university receives a share, too. “When you have a good partner at the table, you can work through those details,” Ritchey said. Eastern Gateway benefits, receiving a little revenue from the space it’s leasing to Kent State and gaining access to shared technology, said Jimmie Bruce, president of Eastern Gateway Community College. However, the main benefit is the access stu-
P003_CL_20190318.indd 3
dents will get to bachelor’s degree programs locally. And Ritchey’s not afraid the program will take away from Kent’s freshman and sophomore classes, at the regional campuses or otherwise. Students tend to choose a campus for a variety of reasons, he noted, and they don’t always transfer from one Kent campus to another even. That’s why the university offers some four-year degrees at its regional campuses. “It definitely takes some coordination,” Ritchey said. “It definitely takes the covenant or the pledge that we all stay in our lanes.” Similarly, Bill Kraus, associate provost for enrollment management at the University of Akron, doesn’t see much overlap between the students at Stark State and the university’s fresh-
man population. Community colleges tend to have larger populations of adult learners. And the Direct Connect program between the two institutions could let the university stay connected with students who are currently being denied admission and choosing to attend Stark State. The higher education environment is competitive, and there are fewer high school graduates than there were in the past, Kraus said. Transfer students, like those at the community colleges, offer universities another pool of students from which to draw. On the community college side, the state’s move to performance-based funding for colleges and universities in recent years has been a factor in the growth of these programs, said Stephanie Sutton,
vice president for enrollment management at Stark State. Degree completion plays a significant role in the state’s funding model for schools. “It’s not only the right thing to do, but now it’s also how the institutions are supported,” Sutton said. In the Direct Connect program, Stark State, which has campuses in North Canton and Akron, and the University of Akron have teams that will work together to map out plans for students and make sure the courses they’re taking are relevant to their career goals. The program will take a 2+2 approach for most students — two years at Stark State and then two at the University of Akron — but Sutton said the program is flexible enough that students can transfer earlier, take more classes at Stark State longer or be dual-
ly enrolled if that’s the best fit for them. The dual enrollment allowed by some of these programs could complicate, a bit, how enrollment is reported. For the Cleveland State-Lorain County Community College UP Express partnership, both institutions will report the hours a student attends their particular institution to the state, said Marisa Vernon-White, associate provost for enrollment management and student success at LCCC in Elyria. But for federal financial aid purposes, the school a student spends the most time at serves as his or her home institution. Ultimately, the dual admission model helps to “break down the structural silos” between community colleges and four-year universities, Vernon-White said.
FIFTH THIRD SPECIALTY FINANCE PRODUCTS
WHERE EXPERIENCE AND INNOVATION INTERSECT. Tom Partridge EVP, Head of Specialty Finance Products at Fifth Third Bank
Tom and the Specialty Finance experts at Fifth Third Commercial Bank go beyond financing by creating solutions that maximize borrowing capacity, and customize payments to meet cash flow needs. ®
This is banking a Fifth Third better. 53.com/Experience
Fifth Third Bank, Member FDIC
3/15/19 11:40 AM
PA G E 4
|
M A R C H 18 - 2 4 , 2 019 |
CRAIN’S CLEVELAND BUSINESS
BORROW
ICP adds bench strength, acquires two properties By Stan Bullard sbullard@crain.com @CrainRltyWriter
Your local credit union, local money for local borrowers. Commercial Real Estate Loans up to $10 Million No Prepayment Penalties • As Little as 10% Down
Contact Jonathan A. Mokri 440.526.8700 jmokri@cbscuso.com www.cbscuso.com Your Business Lending Partner SM
fi“Ifififiufifififidfifififififififififififi fififitfiHfifififiNfifififiHigfifiSfifififififi�
SARAHfiBARBOfiNIELSON Director, Corporate Strategy, CMS Energy Former Captain, U.S. Army Holy Name High School Class of 2002
Celebrating over 100 years of tradition
Mind | body | spirit fifififififififififififififi RfifidfiSfifififi’fififififififififififififififififififififififififififififififi
Industrial Commercial Properties, the Solon-based real estate owner and manager with a sizable portfolio but a small staff, has just added two new executives from the REIT universe: SITE Centers Corp. and the former Forest City Realty Trust. Moreover, in typical ICP fashion, it also has acquired two new properties: the former Sears store at Midway Mall in Elyria and the former Kmart store on SR 14 in Streetsboro. Bill Kern, previously senior vice president of leasing and national accounts at Beachwood-based SITE Centers, has been named an executive vice president at ICP. Andy Hill, who was a vice president at Forest City Realty Trust Inc. until it was acquired in December by Toronto-based Brookfield Asset Management Inc., has joined ICP as senior vice president of finance, where he will oversee its accounting as well as managing its borrowing and lending relationships. Both said they joined the 20-person staff of ICP, immensely smaller than their prior publicly traded companies, because they see a lot of runway for it to keep growing. ICP owner Chris Semarjian said in a recent phone interview that he’s looking to the company’s future with the hires rather than its past. “We want to do more,� Semarjian said. “And to do more we have to build a staff. I love to acquire. I love to work on leasing. On the other hand, with a growing portfolio, we need more people to work with tenants, on financing and in construction.� Chris Salata, ICP’s chief operating officer, said in the same interview, “We’re still lean and mean. We are now (with the new hires) a group of 24 people. We’ve got to add the best athlete available to hit the ground running.� At ICP, Kern will oversee the company’s asset management practices and play a lead role in transactions and development projects. In a 17-year career at SITE
Hill
Kern
Centers and its predecessor DDR Corp., he was responsible for directing the leasing department for the western U.S. and Puerto Rico, a portfolio consisting of approximately 30 million square feet. He also oversaw its national accounts department, with relationship management responsibilities for the company’s 50 largest tenants, along with earlier roles in development and dispositions. Kern said that although ICP has a sizable portfolio, he felt it’s still “in its early innings� after meeting with Semarjian. “It’s going to be refreshing to go to a place that’s playing a whole lot of offense,� Kern said. “It will also be personally rewarding to learn another part of the real estate business.� That’s because his experience has been in retail, while most of ICP’s portfolio is industrial. For Hill, ICP provides a chance to stay in Cleveland rather than pursue similar REIT-type positions out of town. “There are not a lot of committees here,� Hill said. “It’s like a breath of fresh air to join a small company. I also feel it’s a unique opportunity to land a job with a company headed by someone like Chris Semarjian. His energy and creativity in working with people and tenants is second to none.� At Forest City, Hill worked on loan closings totaling $1.5 billion in just the last five years, and he’d been with the firm for 13. “We have a portfolio of 100 properties,� Semarjian said. “They may need to be refinanced at some point. And we need financing for acquisitions, so that was the thinking in bringing in (Hill).� Part of the added staffing need, Semarjian said, arises from a new
approach at ICP. “In the past, we had a buy-andhold philosophy,� he said. “Now, we’re looking to be more strategic. What’s the best course of action for each property we own or buy? Some of these assets are also attractive to institutional investors, and they might best be sold.� ICP also has been a frequent partner for decades with Stuart Lichter, the founder of Redondo Beach, Calif.-based IRG Realty, which has a massive Ohio portfolio as well as holdings around the country. Kern and Hill will be able to help with that relationship. Asked if he ever expected he’d be hiring people from the executive level at nationally known REITs, Semarjian said he never gave the idea any thought. “My mentor’s (Lichter) philosophy was to just keep going,� Semarjian said. “I just kept my head down and focused on the next deal. Now, we’re here.� Speaking of new deals, Semarjian also had purchases to reveal as he discussed the new hires. He declined to disclose the purchase prices of the Elyria Sears and Streetsboro Kmart properties, although his attraction to one of Midway Mall’s former anchors is clear from the way he described it: six loading docks and a location between the Ohio Turnpike and I-90, with most of its space on a single floor. That’s a recipe for a potential industrial conversion. He also viewed the former Kmart at 9059 SR 14 in Streetsboro, a suburb with a well-established industrial district, as a potential industrial conversion project. However, he added, two retailers have approached him about the Kmart, so it may remain in retail use. All told, ICP has a portfolio of 40 million square feet, most of it industrial and in Ohio, but also in Florida, Michigan and Pennsylvania. Salata said the company’s size is such that it concluded deals to lease a million square feet of office space last year. “We’re primarily industrial but are also in other property types,� he said.
I-480 Facing Real Estate Portfolio Aurora Road, Warrensville Heights, OH AURORA ROAD 2
5
4
3
2
128,000 vpd
)ΝΝΝΝΝ5ĎƒÎťÎťĎƒ %'1 9QTNF 5[PGTI[
1
SALISBURY ROAD 6
PROPERTY OVERVIEW
• • • • •
20714, 20710, 20702 & 20614 Aurora Road I-480 Frontage Immediate Highway Access Near Amazon distribution center Various sized buildings for sale
www.hannacre.com
P004_CL_20190318.indd 4
Michael J. Occhionero 216.861.5291
ΝΝΝΝΝΝΝΝΝΝΝΝΝΝ ΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ ΝΝΝΝΝΝΝΝΝΝΝΝΝ "EACHWOOD OFFERS AN EXTENSIVE NETWORK AND GREAT AMENITIES WITHOUT THE HASSLES OF A BIG CITY v
ĎƒÎťÎťÎťÎťÎťĎƒÎťÎťÎťÎťÎťÎť5ΝΝ*ÎťÎťĎƒÎťÎť\ÎťĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒĎƒ
MichaelOcchionero@HannaCRE.com
3/15/19 11:02 AM
I’m like a doctor to your business. I give
legal advice health care on
.
Like any industry, health care has its headaches. Its pain points and signs of aging. Regulation, compliance, reimbursement, reform. Managing care while managing costs. The governing laws change day by day, state by state. Administration by administration. You need proactive diagnosis and treatment from more than a general practitioner. Our Health Care Practice Group handles transactional, regulatory and litigation matters. For providers and payors, private investors and third-party administrators. Our clients can’t afford to ignore warning signs. Or take risks with the health of their business. Can you? I’m ALAN SCHABES. I’m on your team.
MY BENESCH MY TEAM
> Health Care Practice Group > Representing private equity and capital investors, health care providers and health care payors. > Legal Services Include: Mergers and Acquisitions, Financing, Regulatory Compliance, and Litigation. > 216.363.4589 | aschabes@beneschlaw.com
www.beneschlaw.com
CL_031819_FP Template.indd 1
3/12/19 11:54 AM
PA G E 6
|
M A R C H 18 - 2 4 , 2 019 |
CRAIN’S CLEVELAND BUSINESS
Quest for downtown retailers, answers grows By Stan Bullard sbullard@crain.com @CrainRltyWriter
Laura Bosse has operated a shop at the Arcade in downtown Cleveland for four years for Prosperity, a 30-year-old self-produced custom jewelry firm she co-owns that operated on a wholesale and consignment basis before its first retail fling. She has a surprising twist on the downtown retail scene. Her best customers in terms of visiting and buying are guests at the Hyatt Regency Hotel in the Arcade and convention-goers. “They love our buildings, our lake and our city,” she said. “They also all have the same question, ‘Where’s the shopping?’ They just can’t understand why there
is not more shopping here like there is in other downtowns.” As more first-floor retail space goes onto the market with new apartment buildings or gets updated in old office buildings converted to residences, efforts are afoot to figure out how to fix that problem. Meantime, prominent locations remain leasing laggards for years, such as the retail space at the Kimpton Schofield Apartments on the southwest corner of Euclid Avenue and East Ninth Street that has sat empty three years, except for a holiday pop-up bar last year. At The Standard, ground floor retail space that was emptied in 2016 as the building at 99 W. St. Clair Ave. was converted to 300 apartments from offices sits empty — 14 months after reopening.
And a lot more tenant-ready, whitebox space is bound for the market this year and next as a spate of new projects takes wing on Euclid Avenue between East Ninth and East 14th streets. More than a half-million square feet of additional retail is bound for downtown thoroughfares the next two years, including the storefront-lined, $300 million nuCLEus project north of Quicken Loans Arena at East Fourth Street which will have 80,000 square feet of selling space. A mix of anticipation and apprehension looms in the aftermath of downtown’s long slide as a shopping district since the 1960s. “For so long, downtown did not have a cohesive retail district,” said Joseph Khouri, a CBRE first vice president who works on retail leasing and
development. “Now we’re seeing one coalesce before our eyes.” Khouri represents Millennia Cos. of Cleveland on its downtown retail, which incorporates first-floor space in four buildings, including 40,000 square feet at the proposed Centennial, Millennia’s proposed remake of the office building at 925 Euclid as apartments and updated office space, and 13,000 square feet of shop space at Millennia’s Statler, 1127 Euclid Ave., where a multimillion-dollar upgrade is underway. “You’ve got to get in front of the right tenant,” he said, “the tenant that understands the opportunity and has a desire and wants to be a part of Cleveland’s renaissance. Generally, those are daily needs, specialty goods, and of course restaurants. The opportunity comes from the hun-
BUSINESS UNINTERRUPTED. Spectrum Business keeps your business running with over 99.9% network reliability.§
CALL 855-339-9668 or visit business.spectrum.com
§99.9% reliability based on average HFC Availability, January 2018 - December 2018. Services subject to all applicable service terms & conditions, which are subject to change. Restrictions apply. Call for details. © 2019 Charter Communications, Inc.
P006_CL_20190318.indd 6
dreds of people who will be moving into the new apartments.” Meantime, Tony Visconsi, a managing director of the retail unit at Howard Hanna Commercial in Cleveland, is trying to find tenants for Euclid Grand Apartments, at 1001 Euclid Ave., which are being installed in a long mothballed former office complex between Statler and Centennial. Visconsi is looking forward to the end of the year, when renovation will be at a point that prospects can appreciate the 21,000 square feet of shop space at Euclid Grand. With 30 years of experience in retail brokerage, Visconsi believes that will spark more interest in the space, which has been light so far. He also is wary. “We’re operating in a soft retail environment for good suburban locations,” Visconsi said. “Downtown, if you are not working with a restaurant, you are pioneering.” Another factor is that some determined owners will wait for the right deal. That’s the case at Kimpton Schofield, the hotel apartment building, where owner-developer Steve Calabrese, CEO of Cleveland-based CRM Cos. realty firm, has talked with about 10 national concerns and a multitude of local ones without finding the right one. He said he’s now negotiating with a non-restaurant tenant he would not identify for the corner space. “There is only one Euclid and East Ninth intersection in Cleveland,” Calabrese said. “It’s all about the visibility of the space and what surrounds it.” Online realty data firm CoStar puts the asking rate at Kimpton Schofield’s retail space at $75 a square foot, though Calabrese declined to comment, noting his own staff had been surprised at the rate. Across town, Suzanne Broadbent, spokeswoman for Warrensville Heights-based Weston, which owns The Stanadard apartments, said it is in talks for a fast-casual restaurant and convenience retail operators. A central figure in the frenzy to land retailers downtown is Michael Deemer, executive vice president for business development at Downtown Cleveland Alliance, the nonprofit that oversees downtown marketing, maintenance and security. “We’re really excited about the opportunity that Euclid Avenue represents,” Deemer said. “This is the opportunity we have been looking forward to for years as projects were put together downtown, especially from East Ninth to Playhouse Square.” DCA met with Euclid Avenue stakeholders last December to review plans and share ideas. “We wanted to make sure everyone has information and is on the same page,” Deemer said. The city has lapped its 15,000 goal for downtown population and forecasts hitting 20,000 by the end of 2020 — a number seen as a benchmark for being taken seriously by retailers. “We also want to find unique concepts and local brands that want to come downtown, much like Heinen’s did,” Deemer said. DCA also will reach out to growing retailers in other downtowns with an urge to expand. Still far from the shopper-clogged downtown of old, more restaurants and shops have gone in steadily since the downtown retailing’s nadir a decade ago. Today, DCA estimates there are a 454 retail establishments downtown, which includes 165 restaurants and taverns. Last year, 30 new shops and restaurants went in.
3/15/19 2:15 PM
PUT A SPRING IN YOUR STAFF’S STEP
WITH AN ACKNOWLEDGMENT IN CRAIN’S PEOPLE ON THE MOVE!
It’s not your imagination – research has shown that employees are more productive when they receive recognition. Announce new hires, promotions and board appointments in Crain’s People on the Move to ensure you have happy employees and are helping your bottom line. Placement guaranteed in print, online and our e-newsletter. Ask about our new 6x and 13x bulk commitments.
Advertising Section
VE
PEOPLE ON THE MO ARCHITECTURE
ACCOUNTING
CONSTRUCTION
BEST BUILD
INSURANCE
Russel Agency
LEGAL
JOHNSON LLP
John Smith hasIte Paula Thompsom volo officte AXT Company Salma Starlgn hasIte hasIte volo officte mpossitatint volut Jane Pool hasIte volo volo officte mpossitatint volut Salma Starlgn hasIte fugiaec tibus, sumqui officte mpossitatint mpossitatint volut Advertising Section fugiaec tibus, volo officte temposa ndianti volut fugiaec tibus, fugiaec tibus, sumqui temposa volut sumqui int mpossitat onserrumende se et sumqui temposa temposa ndianti erro ndianti fugiaec tibus, sumqui doles doles cus, quaeceres et ndianti onserrumende se doles onserrumende onserrumende se et doles temposa ndianti quia volorehendam aut se et doles doles cus, cus, quaeceres erro doles quia erro doles cus, quaeceres onserrumende se et moloratem cus net aperibus quaeceres erro quia quia volorehendam aut dam aut moloratem volorehen moloratem aut nem ligenda nditis doles doles cus, dam dicta volorehen nem moloratem cus net aperibus cus net aperibus dicta nem quaeceres erro quia endantiaesed quos doluptur nditis cus net aperibus dicta ligenda sed nem dicta sed ligenda nditis endantiae volorehendam aut moloratem sitatur eproviduste volende ligenda nditis endantiae endantiaesed quos doluptur nem ipicatenis quos doluptur sitatur ARCHITECTURE ACCOUNTING cus net aperibus dicta CONSTRUCTION riatum verum expelINSURANCE quos doluptur sitatur sitatur eproviduste volende sed eproviduste volende riatum ligenda nditis endantiae doluptatiunt volupta quam, eproviduste volende riatum riatum verum expel ipicatenis i auda verum expel ipicatenis quos doluptur sitatur ommolup tatur? Quiaeper quam, AXT Company TAX Planning Group verum expel ipicatenis BEST BUILD Russel Agency et doluptatiunt volupta quamus doluptatiunt volupta quam, i auda eproviduste volende riatum pa cus in repudionem doluptatiunt volupta quam, i auda ommolup tatur? Quiaeper ieniet Salma Starlgn i auda hasIte Jane Pool hasIte ommolup tatur? Quiaeper volo videlic Salma Starlgn Quiaeper hasIte et Paula velluptam Thompsom verum expel ipicatenis tatur? aut quamus m ommolup m quamus et pa cus in repudione voloquamus officte et officte mpossitatint pa cus in repudione volo officte hasIte volo officte doluptatiunt volupta quam, hariam vero cus, audit pa cus in repudionem videlic ieniet ieniet i auda doluptatur volut mpossitatint volut aut velluptam volut fugiaec tibus, aut velluptam videlic mpossitatint volut optatquatem explampossitatint ommolup tatur? Quiaeper aut velluptam videlic ieniet hariam vero cus, audit cus, audit quamus et vero m fugiaec facepro tibus, sumqui sumqui temposa ut hariam repudione fugiaec in tibus, audit dolori sumqui r cus fugiaec tibus, pa autatqui doluptatu hariam vero cus, doluptatur optatquatem explandianti r temposa ndianti onserrumende optatquatem explatemposa ndianti sumqui temposa aut velluptam videlic ieniet ut facepro optatquatem expla doluptatu onserrumende se et autatqui dolori se et doles doles cus,autatqui dolori ut facepro onserrumende se et ndianti hariam vero cus, audit autatqui dolori ut facepro r doles doles cus, quaeceres erro quia doles doles cus, quaeceres erro onserrumende se et doles doles optatquatem expla doluptatu quaeceres erro quia volorehendam aut moloratem quia volorehendam aut cus, quaeceres erro quia autatqui dolori ut facepro LEGAL volorehendam aut moloratem cus net aperibus dicta nem LAW moloratem cus net aperibus volorehendam aut moloratem CE INSURAN cus net aperibus dicta nem ligenda nditis endantiaesed dicta nem ligenda nditis cus net aperibus dicta nem ACCOUNTING George Group ligenda nditis endantiaesed quos doluptur sitatur Moris Law endantiaesed quos doluptur ligenda nditis endantiaesed ARCHITECTURE volo doluptur quos doluptur sitatur SMITH GROUP eproviduste volende riatum sitatur eproviduste volende Peter Yan hasItequos sitatur Davis Inc. eproviduste volende riatum verum expel ipicatenisShela Time hasIte riatum verum expel ipicatenis officte mpossitatint eproviduste volende riatum Davis Design James hasIte volo officte verum expel ipicatenisDon doluptatiunt volupta quam, doluptatiunt volupta quam, volut fugiaec tibus, verum expel ipicatenis Paul Jones hasIte volo officte volut mpossitat doluptatiunt volupta quam, ommolup tatur? Quiaeperi temposadoluptatiunt volupta quam, Frank Henry hasIte audaint ommolup tatur? Quiaeperi sumqui auda volo officte volut int mpossitat sumqui ende ommolup tatur? Quiaeperi pa cus in repudionem fugiaec volo officte auda quamustibus, et pa cus in repudionem ndianti quamusonserrum et ommolup tatur? Quiaeperi auda mpossitatint volut tibus, fugiaec ndianti volut cus, int temposa aut velluptam videlic ieniet quamus et mpossitat aut velluptam videlic ieniet se et doles dolespa cus in repudionem quamus et fugiaec tibus, pa cus in repudionem sumqui temposa et hariam vero cus, audit onserrumende se fugiaec tibus, hariam veroerro cus, audit quaeceres erro quia aut velluptam videlic ieniet sumqui temposaaut velluptam videlic ieniet onserrumende se et quaeceres moloratem doles doles cus,optatquatem hariam vero cus, audit ndianti optatquatem expla doluptatur sumqui temposa expla doluptatur volorehendam aut hariam vero cus, audit quaeceres erro ndianti aut doles doles cus,autatqui dicta nem quia volorehendam optatquatem et doles doles expla doluptatur dolori ut facepro ndianti autatqui dolori ut facepro cus net aperibusoptatquatem expla doluptatur onserrumende se doles quia volorehendam aut sed moloratem cus net aperibus erro quiadolori ut facepro onserrumende se et doles ligenda nditis endantiae autatqui dolori ut facepro cus, quaeceres autatqui moloratem cus net aperibus dicta nem ligenda nditis cus, quaeceres erro quia dam aut moloratem quos doluptur sitatur nditis volorehen ligenda nem doluptur dicta endantiaesed quos nem volorehendam aut moloratem eproviduste volende riatum cus net aperibus dicta sed quos doluptur volende te endantiae nem dicta eprovidus sed aperibus sitatur ipicatenis ARCHITECTURE cus net ACCOUNTING verum expel LAW INSURANCE ligenda nditis endantiae sed sitatur eproviduste volende riatum verum expel ipicatenis nt volupta quam, ligenda nditis endantiae doluptatiu ipicatenis quos doluptur sitatur expel riatum verum Quiaeperi auda doluptatiunt volupta quam, quos doluptur sitatur ommolup tatur? quam, Davis riatum Design eproviduste volende Davis Inc. i auda SMITH GROUP Moris Law doluptatiunt volupta quamus et ommolup tatur? Quiaeper eproviduste volende riatum pa cus in repudionem Quiaeperi auda verum expel ipicatenis m quamus et ommolup tatur? Frank Henry hasIte ieniethasIte Paul Jones pa cus in repudione videlicTime hasIteet Don James hasIte verum expel ipicatenis aut velluptam Shela m quamus doluptatiunt volupta quam, ieniet pa cus in repudione videlic volo officte i auda audit volo officte aut velluptam volo officte doluptatiunt volupta quam, volo officte hariam vero cus, ommolup tatur? Quiaeper videlic ieniet i auda audit aut velluptam mpossitatint r mpossitatint volutet hariam vero cus, quamus expla doluptatu volut mpossitatint volut ommolup tatur? Quiaeper volut optatquatem mpossitatint audit pa cus in repudionem doluptatur hariam vero cus, quamus et expla m em fugiaec tibus, facepro repudione ut optatquat fugiaec in tibus, ieniet cus fugiaec tibus, pa fugiaec tibus, sumqui autatqui dolori aut velluptam videlic expla doluptatur ut facepro optatquatem sumqui sumqui temposa autatqui dolori temposa sumqui aut velluptam videlic ieniet temposa temposa ndianti ut facepro hariam vero cus, audit autatqui dolori r ndianti ndianti ndianti onserrumende se et hariam vero cus, audit onserrumende se et optatquatem expla doluptatu r onserrumende se et doles doles onserrumende se et doles doles doles doles cus, quaeceres erro optatquatem expla doluptatu doles doles cus, quaeceres erro autatqui dolori ut facepro cus, quaeceres erro quia cus, quaeceres erro quia quia volorehendam aut LEGAL autatqui dolori ut facepro quia volorehendam aut volorehendam aut moloratem volorehendam aut moloratem LEGAL moloratem cus net aperibus moloratem cus net aperibus INSURANCE cus net aperibus dicta nem cus net aperibus dicta nem dicta nem ligenda nditis dicta nem ligenda nditis CONSTRUCTION Singletree LLP ligenda nditis endantiaesed ligenda nditis endantiaesed ACCOUNTING endantiaesed quos doluptur Calla LLP endantiaesed quos doluptur hasIte quos doluptur sitatur quos doluptur sitatur Marble Agency sitatur eproviduste volende Michael Banks sitatur eproviduste volende hasIte Ground Up eproviduste volende riatum Bella Jones riatum eproviduste volende riatum verum expel ipicatenis volo officte riatum verum expel ipicatenis Jon & Jon Co. Tina Bond hasIte officte volo verum expel volut ipicatenis int verum expel ipicatenis doluptatiunt volupta quam,mpossitat doluptatiunt volupta quam, Jenn Stone hasIte volo officte volut sumqui tatur? Quiaeperi Carol Strong hasIte volupta quam,mpossitatintommolup tatur? Quiaeperifugiaec auda tibus, ommolup volo officte doluptatiunt volupta quam,mpossitatintdoluptatiunt auda volut sumqui tatur? Quiaeperi auda volo officte ommolup tatur? Quiaeperifugiaec volut auda tibus, pa cus in repudionem quamus temposa et ndianti pa cus in repudionem quamus et mpossitatintommolup tibus, fugiaec ndianti volut temposa aut velluptam videlic ieniet onserrumende se et pasumqui cus in repudionem quamus et mpossitatint pa cus aut velluptam videlic fugiaec tibus, temposa in repudionem quamus et se et erro ieniet aut velluptam videlic ienietsumqui cus, quaeceres fugiaec tibus, aut velluptam videlic ieniet onserrumende hariam vero cus, erro doles doleshariam audit vero cus, audit temposa ndianti ndianti cus, quaeceres doles dolesoptatquatem dam aut hariam vero cus, audit sumqui temposa se et hariam vero cus,doles audit ende quia volorehen expla doluptatur doles et optatquatem expla onserrum se doluptatur ende aut et se onserrum dam errodoluptatur quia volorehen cus net aperibus expla ndianti onserrumende optatquatem expla doluptatur cus, quaeceres autatqui aperibus dolori ut facepro moloratemautatqui dolori ut facepro doles dolesoptatquatem erro quaeceres erro quia net autatqui aut ut facepro cus, doles doles cus, quaeceres autatqui dolori ut facepro moloratem cus dam dolori dicta nem ligenda nditis quia volorehen volorehendam aut moloratem dicta nem ligenda nditis quia volorehendam aut endantiaesed quos doluptur nem moloratem cus net aperibus cus net aperibus dicta endantiaesed quos doluptur moloratem cus net aperibus sed sitatur eproviduste volende dicta nem ligenda nditis te volende ligenda nditis endantiae sitatur eprovidus expel ipicatenis ACCOUNTING dicta nem ligenda nditis quos doluptur CONSTRUCTION riatum verum INSURANCE endantiaesed LEGAL quos doluptur sitatur quam, riatum verum expel ipicatenis volupta volende nt te endantiaesed quos doluptur doluptatiu eprovidus riatum sitatur eproviduste volende i auda doluptatiunt volupta quam, sitatur eproviduste volende ommolup tatur? Quiaeper Jonexpel & Jonipicatenis Co. riatum verum ipicatenis Ground Up Agencyi auda verum expel Calla LLP quamus et tatur? Quiaeper ommolupMarble riatum verum expel ipicatenis pa cus in repudionem doluptatiunt volupta quam, nt volupta quam, m quamus et doluptatiuJenn Carol Strong hasIte i auda pa cus in repudione Stone hasIte doluptatiunt volupta quam, Tina Bond hasIte Bellavidelic aut velluptam Jonesieniet hasIte ommolup tatur? Quiaeper tatur? Quiaeperi auda i auda ommolupvolo videlic ieniet volo offictem quamus et audit aut velluptam offictem quamus et cus, ommolup tatur? Quiaeper vero volo officte volo hariam officte in repudione cus pa repudione et in quamus pa cus mpossitatint volut r cus, audit mpossitatint volut hariam vero em expla doluptatu pa cus in repudionem mpossitatint volut optatquatmpossitatint volut aut velluptam videlic ieniet videlic ieniet doluptatur velluptam aut ieniet expla em videlic fugiaec tibus, facepro ut optatquat fugiaec tibus, aut velluptam fugiaec tibus, fugiaec tibus, sumqui autatqui dolori hariam vero cus, audit cus, audit sumqui facepro hariam vero dolori uttemposa r sumqui temposa autatqui sumqui temposa ndianti hariam vero cus, audit temposa ndianti optatquatem expla doluptatu em expla doluptatur r ndianti onserrumende se et optatquat onserrumende se et optatquatem expla doluptatu ndianti onserrumende se et autatqui dolori ut facepro dolori ut facepro autatqui doles doles doles cus, quaeceres erro doles cus, quaeceres erro autatqui dolori ut facepro onserrumende se et doles doles doles doles cus, quaeceres erro quia volorehendam aut quia volorehendam aut cus, quaeceres erro quia quia volorehendam aut moloratem cus net aperibus moloratem cus net aperibus volorehendam aut moloratem moloratem cus net aperibus dicta nem ligenda nditis dicta nem ligenda nditis cus net aperibus dicta nem dicta nem ligenda nditis endantiaesed quos doluptur endantiaesed quos doluptur ligenda nditis endantiaesed endantiaesed quos doluptur sitatur eproviduste volende sitatur eproviduste volende quos doluptur sitatur sitatur eproviduste volende riatum verum expel ipicatenis riatum verum expel ipicatenis eproviduste volende riatum riatum verum expel ipicatenis doluptatiunt volupta quam, doluptatiunt volupta quam, verum expel ipicatenis doluptatiunt volupta quam, ommolup tatur? Quiaeperi auda ommolup tatur? Quiaeperi auda doluptatiunt volupta quam, ommolup tatur? Quiaeperi auda pa cus in repudionem quamus et pa cus in repudionem quamus et ommolup tatur? Quiaeperi auda pa cus in repudionem quamus et aut velluptam videlic ieniet aut velluptam videlic ieniet pa cus in repudionem quamus et aut velluptam videlic ieniet hariam vero cus, audit hariam vero cus, audit aut velluptam videlic ieniet hariam vero cus, audit optatquatem expla doluptatur optatquatem expla doluptatur hariam vero cus, audit optatquatem expla doluptatur autatqui dolori ut facepro autatqui dolori ut facepro optatquatem expla doluptatur autatqui dolori ut facepro autatqui dolori ut facepro TAX Planning Group
PEOPLE ON THE MOVE LEGAL
JOHNSON LLP John Smith hasIte volo officte mpossitatint volut fugiaec tibus, sumqui temposa ndianti onserrumende se et doles doles cus, quaeceres erro quia volorehendam aut moloratem cus net aperibus dicta nem ligenda nditis endantiaesed quos doluptur sitatur eproviduste volende riatum verum expel ipicatenis doluptatiunt volupta quam, ommolup tatur? Quiaeperi auda pa cus in repudionem quamus et aut velluptam videlic ieniet hariam vero cus, audit optatquatem expla doluptatur autatqui dolori ut facepro
LEGAL
George Group Peter Yan hasIte volo officte mpossitatint volut fugiaec tibus, sumqui temposa ndianti onserrumende se et doles doles cus, quaeceres erro quia volorehendam aut moloratem cus net aperibus dicta nem ligenda nditis endantiaesed quos doluptur sitatur eproviduste volende riatum verum expel ipicatenis doluptatiunt volupta quam, ommolup tatur? Quiaeperi auda pa cus in repudionem quamus et aut velluptam videlic ieniet hariam vero cus, audit optatquatem expla doluptatur autatqui dolori ut facepro
LEGAL
Singletree LLP Michael Banks hasIte volo officte mpossitatint volut fugiaec tibus, sumqui temposa ndianti onserrumende se et doles doles cus, quaeceres erro quia volorehendam aut moloratem cus net aperibus dicta nem ligenda nditis endantiaesed quos doluptur sitatur eproviduste volende riatum verum expel ipicatenis doluptatiunt volupta quam, ommolup tatur? Quiaeperi auda pa cus in repudionem quamus et aut velluptam videlic ieniet hariam vero cus, audit optatquatem expla doluptatur autatqui dolori ut facepro
Advertising Section
PEOPLE ON THE MOVE For more information, contact Debora Stein at dstein@crain.com
CrainsCleveland.com/People-On-The-Move
CL_031819_FP Template.indd 2
3/13/19 4:54 PM
PA G E 8
|
M A R C H 18 - 2 4 , 2 019 |
CRAIN’S CLEVELAND BUSINESS
Opinion From the Education Beat
Admissions scandal doesn’t define higher ed
Editorial
A question of scale If there was any doubt that Cleveland went all in to try to attract an Amazon headquarters, that was dispelled when, due to a lawsuit filed by WEWS reporter Sarah Buduson, the city was forced to release the full details of its bid. And what a bid it was, with a total of $3.5 billion in incentives, including $1.55 billion from the state and JobsOhio, $803 million from the city of Cleveland and $646 million from Cuyahoga County. Other goodies included a power “microgrid,” creation of an “Amazon University” and access to key real estate downtown. Whatever your view of government incentives — we’re skeptical, but open to persuasion in the right circumstances and at the right scale — this was a massive offer for a company that ran something of a con on a lot of cities, since New York (now abandoned) and Washington, D.C., were its preferred targets all along. The bid didn’t work, as Cleveland wasn’t even on the 20-city shortlist. A generous way to look at this is that the bid displayed an unusual amount of cooperation and focus among public- and private-sector players, and that it represented an aggressive play for a once-in-a-generation project. Cleveland was deficient in a lot of areas — workforce, housing, transit, etc. — of importance to Amazon, and pledging huge financial incentives would be the only way to stay in the game. But c’mon. The incentives offered were wildly over the top for a city and region that struggles to maintain basic services. If the collaborative process displayed here is part of the template for future pitches for big projects, great. But this financial package cannot set the bar for our approach to economic development. If we require this much of a giveaway to attract a company, it’s a sign we’re lacking in the basics of what makes a region appealing as a headquarters location. One other thing: Good for Buduson for being dogged in forcing disclosure of the bid. And shame on the entities that fought so hard to keep taxpayers in the dark about how they wanted to deploy public resources. The town’s lack of transparency is maddening.
Take a bow
Casting a lead role is hard. Playhouse Square got it right 28 years ago, when Art Falco became CEO of the nonprofit performing arts center, and it has done so again, in announcing that Gina Vernaci, Playhouse Square’s highly regarded president and chief operating officer, will take over the top job on July 1. Falco, who will continue as a senior adviser for special projects, mostly related to Playhouse Square’s real estate interests, has a significant record of achievement. He oversaw a doubling (to 11) of the number of performance spaces at Playhouse Square, and annual attendance has pushed above 1 million. Falco established Playhouse Square Real Estate Services, an active part of the organization with a high-profile project — The Lumen apartment tower — now rising near the theaters. And he was instrumental in creating downtown Cleveland’s first Business Improvement District, which has helped make the Playhouse Square area one of the liveliest and most appealing parts of downtown. It later was adopted citywide as Downtown Cleveland Alliance. That’s a hard act to follow. But with Vernaci at the helm, Playhouse Square is in good hands. She joined Playhouse Square in 1984, has been its executive producer since 2014 and COO since last October. Vernaci has held leadership positions in several influential arts groups, including the Broadway League. She has overseen a big expansion of the KeyBank Broadway Series, from eight to 24 performances for each engagement, which has helped pushed the season-ticket base to more than 45,000. (And if you’ve been to one of the Broadway Series launch events, you know she’s a lively, confident host in front of big crowds.) Transitions in large organizations aren’t easy. Give Playhouse Square some applause for making sure a key institution in town remains vibrant.
Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)
CLEVELAND BUSINESS
CLEVELAND BUSINESS P008_CL_20190318.indd 8
Managing Editor:
Scott Suttell (ssuttell@crain.com)
Contact Crain’s:
216-522-1383
Read Crain’s online: crainscleveland.com
As a higher education reporter in Northeast Ohio, I have lots of thoughts about the college admissions cheating scandal. The main one? It reminds me there’s a whole other world I don’t even think about most days. The scandal saw wealthy parents paying for better standardized test scores for their children or for fake athletic achievements to pave the way for admission to elite schools. The colleges I cover are concerned with rising costs and shrinking enrollments and whether the classes they teach align with the skills students need in the workplace. This isn’t to prop up these schools as more wholesome than the elites; it’s to say that they may as well be operating in completely different systems. Rachel Abbey This topic of the divide between elite McCafferty schools and those I cover was already spinning around in my brain when the scandal broke. Earlier in March, someone in charge of fellowships and internships at The New York Times tweeted about the schools that produce the most productive journalism graduates. There were some large public schools in there, but at the top of the list were exclusive, prestigious schools. It set off an uproar on media Twitter. My initial reaction was an eye-roll. I know a lot of people in journalism without such lauded degrees. I’m proud of my state school degree, and the practical experience I gained there. I’m not insinuating that this conversation is the same as the cheating scandal. But it illustrates the wide gulf between the national media and local media. Talent and luck can help some people leap across it, but that’s rare. The people who have access to national media jobs are, typically, the same ones who have access to elite universities, as that tweet demonstrated all too clearly. For how many sectors is this true? Probably all of them. People criticize the lack of racial and gender diversity, let alone class diversity, in journalism, in politics, in leadership. This is why it exists. We can’t expect people to vault over barbed-wire fences and crash through brick walls just to get the same consideration as someone who paid to bypass the barrier altogether. Our country is made up of so many different Americas. Class, race, gender, geography — all building on one another. I’ve been dealt more than my fair share of luck; lots of others haven’t. When news of the elite college admission cheating scandal broke, I was working on a story about the increase in partnerships between community colleges and four-year public universities in Northeast Ohio. Sure, the community colleges will benefit if more of their students complete degrees — state funding in Ohio is partially based on completion, after all. And sure, the four-year universities will benefit if students who wouldn’t have attended their schools end up enrolling. But the people I talked to seemed genuinely excited about making the education system more accessible and less expensive for students. And that happens a lot. I talk to schools about the ways they’re supporting first-generation students and students of color and students facing financial difficulties. It’s clear they think about these students. It’s clear they care about them. I’m glad I’m a reporter where I am, covering the institutions that I do. This scandal is not the defining story of higher education today. Colleges and universities are evolving and adapting, trying to find ways to deliver education less expensively for a rapidly changing world. Those are the stories that define education today, and I’m glad those are the stories I get to tell.
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 ClevEdit@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.
3/14/19 4:08 PM
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
|
PA G E 9
Big Law Firm Experience. Solo Success. Real Estate & Finance • Hotel & Hospitality • General Business Counsel
Celebrating 10 Years of Personalized Client Service
Personal View
Impact of childhood trauma affects entire community By Habeebah R. Grimes
We’ve long recognized that extreme stress can lead to mental health problems. We rightfully hold veterans in our hearts and sympathize with the life-altering effects of war. We are arguably open to the idea that intense stress in daily life increases our risks for heart attacks, strokes, high blood pressure and the like. We’ve acknowledged that modern-day stress is literally making us sick, but we’ve mostly accepted this as par for the course. We’re adults. We can take it, right? We now know the human body cannot take it. In fact, when stress is unrelenting, it Grimes affects our brains and bodies. That is especially the case for children. Extreme poverty, neighborhood violence, physical and sexual abuse, witnessing violence. These are just a few of the traumatic circumstances and events that are all too familiar for many children in Greater Cleveland. Research findings from neuroscience, developmental psychology and the seminal study by Adverse Childhood Experiences (ACEs) demonstrate that traumatic stress begins exacting its toll on mental and physical health early in life, leaving its mark on the body’s systems. It even impacts the expression of our genetic code. The earlier in life trauma occurs, the more persistent it is as a child grows up — the more profound the impact. Childhood trauma disturbs brain development so dramatically, it undercuts the foundations necessary for young people to learn and grow. For children in Cleveland, this means they are at tremendous risk for poor health, education and economic outcomes, including early death. Childhood trauma is rightfully described as a public health issue. Because of the impact trauma can have on educational attainment — without question the top public policy priority in Greater Cleveland — it’s also an economic development issue. Many of the children we serve at Positive Education Program (PEP) through our array of special education and mental health services have experienced several stressful or traumatic events. Many of these kids have
been exposed to unspeakable horror that manifests in severe mental health and behavioral issues. Many of their parents have suffered similarly. Each year, the needs of the children we serve intensify. At PEP, we have deeply invested in building a trauma-informed workforce. We’ve implemented a systems-oriented, trauma-informed framework, The Sanctuary Model, and forged a partnership with The ChildTrauma Academy, becoming a Phase 1 certified Neurosequential Model of Therapeutics (NMT) site. We are heartened by the local foundations, hospitals and universities investing in this work, but we must do more. Every institution in our city — funders, schools, nonprofits, economic development Helon Ad-3-11-Final.indd organizations, among others — must unite their efforts to understand the effect childhood trauma is having and respond. Our community’s commitment to improving education in the city of Cleveland is sincere — the Cleveland Plan for Transforming Schools and Say Yes to Education are evidence of that. Confronting the effects of childhood trauma should also be a cornerstone of discussions about how to improve the quality of life for our community’s kids. Cleveland has an incredible opportunity this week to hear from Dr. Nadine Burke Harris, one of the strongest voices regarding ACEs and their effects on long-term health. Burke Harris, a pediatrician who was recently named the first surgeon general of the state of California, will speak Thursday, March 21, at a City Club of Cleveland forum at the Global Center for Health Innovation. We are hopeful her address can propel this conversation further in Cleveland. Leaders in Columbus also appear increasingly open to understanding the impact of childhood trauma. In his State of the State address, Gov. Mike DeWine described helping children overcome the barriers and disadvantages of poverty and trauma as a “moral and economic imperative.” We couldn’t agree more.
J.D.
M.B.A.
www.helonlaw.com
www.helonlaw.com
216.978.7463
1
3/7/19 5:07 PM
Grimes is CEO of Positive Education Program, one of the state’s largest nonprofits committed to children.
Web Talk Re: Future of Carnegie Avenue After decades of planning and hard work, the MidTown Cleveland organization and the city of Cleveland’s planning and development departments have succeeded in working with key partners to revitalize and redevelop much of Euclid Avenue in the area between CSU and the Cleveland Clinic. Pierre’s Ice Cream was the first success, decades ago. More recently that success has been joined by many others, with new offices, new startup businesses, a UH clinic, new housing and the reuse of historic buildings for entertainment at the Agora and the Masonic Temple, plus the amazing new Children’s Museum. Congratulations to developers Fred Geis, Dick Pace, Gordon Priemer and others, along with businesses and organizations like Dealer Tire, the Center for Families and Children, Central Cadillac and Applied Industrial Technologies, who have been willing to take the risks to partner with the MidTown organization and the city government to bring back this key East Side district. Currently, the MidTown organization, along with the city government and City Council, have been working to link these successes to the neighborhoods to the north and south of MidTown, including Hough, Fairfax, Central, St. Clair-Superior and others. Now it makes sense to turn attention to long-neglected Carnegie, the most heavily traveled street in the MidTown district, where vacant property creates opportunity for significant
P009_CL_20190318.indd 9
new development and more success stories. Years ago, many Clevelanders had given up on MidTown. The area didn’t even have a name! Now the hard work of what began as a small group of optimists is paying off in tremendous dividends to local communities and to the region. — Robert Brown
Re: Development in Lakewood As a fellow Lakewood resident and design and planning professional, I read the March 11 Personal View by Nora McNamara, “Lakewood needs to take a hard look at development proposals,” and could not disagree more with the idea of a subdivision fronting the city’s main commercial corridor. I also fail to see how the proposed development is not in keeping with the historical context, or would have a negative impact on the character of the city. As someone who has also lived in other major metropolitan cities, I am baffled by the level of concern over congestion and parking in any neighborhood in Cleveland, especially Lakewood. Having grown up in a more suburban neighborhood of Cleveland, when I chose to return to the area I chose Lakewood because of its walkability, restaurants and shops, not single-family subdivisions, and that is why Lakewood’s property value has risen while so many others have declined. I agree that we should push for high-quality development that is a benefit to all members of the community, but not the “solutions” proposed by the author of this article. — +/-
3/14/19 2:23 PM
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
PA G E 11
|
TECHNOLOGY
Cloud services send Lakewood firm sky-high By Douglas J. Guth clbfreelancer@crain.com
System downtime is a proven company killer: According to data industry experts, 93% of businesses experiencing data-center shutdowns of 10 days or longer file for bankruptcy within a year. This frightening figure emphasizes the importance of having a data-recovery plan, one that Lakewood cloud computing and consulting service company Onix is ready to provide. Founded during the 1990s tech boom, Onix has grown from its roots in network hardware and software to the cutting edge of the cloud computing movement. A powerhouse in the business intelligence space, the company offers a suite of cloud services and products including cloud migration, backup and disaster recovery. Onix also has map- and location-based offerings for clients working in a cross-section of industries. Onix’s portfolio holds more than 100 Forbes Global 2000 companies as well as numerous organizations and nonprofits, with transportation, utilities, retail and logistics included in its expanding industry reach. Earlier this month, Onix launched a health and life sciences division geared to hospitals, academic medical centers and medical device manufacturers. The health care cloud computing market, driven by demand for regulatory compliance and the proliferation of high-speed internet, is forecast to reach $11 billion by 2022, per an August 2018 Market Research Engine report. Recognizing industry trends has helped Onix shift from the software stacks of 20 years ago to today’s realm of hyperefficient — not to
+
++
++ + +
+
Needles Onix’s headquarters in Lakewood (Contributed photo)
mention increasingly ubiquitous — cloud technology, said marketing director Bryan Kokish. “Many of those companies (from the ’90s) aren’t around now, but Onix recognized the marketplace and how technology was evolving,” he said. “We’ve survived and thrived by staying a step ahead of the competition and the technology.”
An infrastructural necessity Partnerships with technology leaders such as Google Cloud and Amazon Web Services (AWS) have cemented Onix’s foothold in a demanding sector, Kokish said. After becoming a Google partner in 2002 — at the time, one of the first companies to enjoy that distinction — Onix began deploying Google’s cloud computing tools across its client portfolio. Additionally, the business resells, implements and manages Google’s location-based applications for businesses in industries needing to track a fleet of vehicles. Via the Google cloud platform, organizations are also learning about data backup and cyber-liability risk management. Onix’s team-up with Amazon, an-
+ + + ++ +
nounced at the beginning of 2018, is similar to its Google alliance. As an AWS partner, Onix helps clients manage and secure their workloads and applications onto the cloud, which Kokish said is no longer simply a framework for storage, but an infrastructural necessity supporting any modern business strategy. “Both Google and Amazon know the future is in the cloud,” he said. “What we communicate to small, medium and large businesses is that they’re going to need to utilize the cloud.” For corporations with a long history, cloud computing is a means of storing and organizing decades of information into an easily searchable repository. Onix recently provided this service to Whirlpool, a global home appliance manufacturer boasting more than a century of rich history. “Companies may lose institutional knowledge as baby boomers start to retire,” noted Kokish. Onix can help prevent the need to go back to square one.
protocols used to govern connection of online computer systems. The company’s profits have ballooned in conjunction with its reach into the business intelligence space. Over the past five years, Onix has focused on generating a 20% to 25% uptick in year-over-year sales. “With the public cloud services market forecast to grow 17.3% in 2019, Onix is poised for even stronger growth this year,” Needles said in an email. “We fully expect an increase in annual revenues of more than 25% in 2019.” Expected dramatic growth in cloud usage has necessitated more products to handle the load. For example, Budget Dumpster, a Westlake provider of affordable trash container rentals, uses Onix’s OnSpend billing analytics tool to manage its budget in association with an existing Google cloud platform. Director of web development Joe
Swislocki said the tool tracks company spending across all accounts, alerting officials to projects at risk of budget overrun. He likened using OnSpend to having another employee in-house dedicated to crunching numbers. “It’s not something we can always monitor ourselves; I don’t know who else would even do it,” Swislocki said. “It gives us peace of mind to have this monitoring our spend on a full-time basis.” Success has allowed Onix to introduce new products into its cloud computing lineup as well as maintain a strong presence in the U.S. and Canada. Staying competitive will require the same creativity that lifted the company from its humble beginnings. “If you look at our history, we’ve evolved with technology and the needs of organizations,” said Kokish. “We want to continue the digital transformation that started in the ’90s.”
Looking for a corner Office with Lake views? Finished space available on the 7th floor of Ernst & Young Tower from 6,000SF to 13,000SF
More money, more products In 1993, president and CEO Tim Needles started Onix with two other entrepreneurs, concentrating mostly on TCP/IP, a suite of communication
CONTACT US: Steve Ross | +1 216 363 6423
+
CYBERSECURITY IS SERIOUS BUSINESS.
Is your company ready to implement Agile methodology?
If you think hackers are not after your data, think again. If your data is breached, will your customers trust you again? Maloney + Novotny can help you achieve a cybersecurity program that current and future customers can depend on to protect their important data.
Rapid changes in competition, demand, technology and regulations mean organizations must be able to respond and adapt quickly.
Cuyahoga Community College (Tri-C®) can help train your employees in Agile methodology.
Business Advisors and Certified Public Accountants
• Introduction to Agile Project Management • PMI® Agile Certified Practitioner (PMI-ACP)® • Professional Scrum Master® (PSM) Transform your organization. Get started today!
tri-c.edu/projectmanagement or 216-987-4770
maloneynovotny.com 19-0240
P011_CL_20190318.indd 11
3/14/19 1:25 PM
PA G E 12
|
M A R C H 18 - 2 4 , 2 019 |
CRAIN’S CLEVELAND BUSINESS
TECHNOLOGY
Growth by Design
Northeast Ohio’s economic development engine at work
OHTec takes a larger role in growing regional tech By Judy Stringer clbfreelancer@crain.com
THE WIN In 2018, Spray Products Corporation, a leading manufacturer of aerosol and liquid consumer products based in Pennsylvania, bought a 270,000-square-foot facility in Medina.
ECONOMIC IMPACT The new location for Spray Products is at the former site of The Valspar Corporation’s subsidiary Plasti-Kote Co. Inc., also an aerosol manufacturer. Valspar ended operations at the site in 2016 and the building had since remained vacant. In addition to filling the largest vacant building in the city, Spray Products committed to creating 40 new positions — with the goal of reaching 100 in the near future — and it will be a part of the City’s rail consortium.
LOCAL ECONOMIC DEVELOPMENT PARTNERS A variety of city, county and state partners worked together, including the Medina County Economic Development Corporation, City of Medina, Team NEO/JobsOhio, Development Finance Authority of Summit County, Medina County Port Authority, and the Ohio Rail Commission.
www.CrainsCleveland.com/TeamNEO
YOUR STORY. YOUR STAGE. SPONSOR AN EVENT TODAY: Lisa Rudy • lrudy@crain.com
On Monday, April 8, Scott McKinney will get about 30 minutes to do what would take him months, or maybe even years, to do on his own. The connecTel shareholder will lay out his Pittsburgh-based company’s sales pitch to a handful of Northeast Ohio’s top technology decision-makers. He’s not after contracts — at least not right away. And this isn’t about investments or cash awards like conventional "Shark Tank"-style events. The prize for connecTel, and a half-dozen other tech providers participating in OHTec’s inaugural Tech Tank event, is advice. “We see this as an excellent opportunity not only to let people know who we are, but really to learn what drives the technology decisions in the region,” said McKinney, who is overseeing connecTel’s expansion into Greater Cleveland. “To have someone in a nonadversarial or nonfail setting say, ‘This is what I would change’ or ‘This is how I would approach this differently,’ I don’t know how else I would get that information.” Kicking off Tech Week 2019, Tech Tank is one of several new initiatives for the 21-year-old OHTec, which is taking a larger role in regional technology development. Douglas Wenger, a former chief information officer at Beachwood-based Omnova Solutions Inc. and a 40-year industry veteran, came on board as OHTec’s executive-in-residence last September. He said a “listening tour” that involved conversations with more than 100 area technology
and economic development leaders during the first few months of his tenure provided the backdrop for a “reimagination” of the organization. “For a long time," Wenger Wenger said, "OHTec has focused mostly on small tech companies and entrepreneurs, but we felt this was a point in time when we needed to say, ‘Couldn’t we and shouldn’t we play a larger role of growing the tech sector in Northeast Ohio?’ — which involves a lot of efforts and initiatives that we had not previously spent a lot of our time on.” If Wenger’s listening tour is the backdrop for the new and improved OHTec, then its recently launched CIO Forum is the backbone. Leveraging the resources of the Greater Cleveland Partnership, its parent organization, OHTec has compiled a registry of more than 100 chief information officers and IT leaders from Northeast Ohio’s biggest companies. According to Wenger, many of those executives are meeting monthly and providing essential support for OHTec’s elevation. Take economic development. While OHTec has not traditionally been at the table when companies are considering relocation to Northeast Ohio or expansion here, today it's being call upon “to help paint the picture of what the technology buyer looks like in our region,” he said. A market study based on the CIO registry suggests locally based companies
invest about $5.6 million a year in information technology. “Now, for the first time, we have this number that we can provide to the economic development teams to help them frame and shape their messaging and outreach,” Wenger said. Having the registry in hand also allows development teams to come to OHTec for referrals and introductions between tech companies and their prospective clients when providers are considering Cleveland, Akron or one of the many suburbs as a potential location. Closer to home, he views the CIO Forum as a way to increase accessibility to IT decision-makers among local suppliers. Tech Tank was an outgrowth of the latter. “It gives the tech companies an opportunity to meet with CIOs, who otherwise they might have trouble even getting on the calendar of, and talk about their products, their markets and their services,” Wenger said. “And the CIOs will give them a kind of voiceof-the-customer feedback, a sense of the capabilities that are needed to go from selling to, say, a $500 million customer to a $3 billion customer.” OHTec also relaunched a sales and marketing interest group where members can network and share best practices. Response to the new initiatives has been positive. The six slots for Tech Tank, for example, were filled nearly as soon as he booked boardrooms for it. To date, eight CIOs have agreed to help technology suppliers better understand their needs. “They are looking at it from the standpoint of ‘If I can help the tech sector grow here, the whole community does better,’ ” Wenger said.
Are you an individual with $10 million or more seeking advice? Advice and insight across generations Today, backed by the expansive global resources of UBS and its 150-year tradition of serving some of the world’s wealthiest families, our team has never been better positioned to serve our affluent clients and their families. From complex multigenerational planning to wealth preservation strategies and transfer, we are your source of financial stewardship and advice. Cleveland Wealth Management Team William G. Murphy, CIMA® Senior Vice President– Wealth Management Private Wealth Advisor
Owen C. McBride, CFP®, CLU Senior Vice President– Wealth Management Private Wealth Advisor
Chad Arthur Hartup, CFP®, CRPC®, CLU Senior Wealth Strategy Associate
UBS Financial Services Inc. 600 Superior Ave East, 27th Fl Cleveland, OH 44114 216-736-2807 Cybersecurity Data Center Cloud
ubs.com/team/cwmt Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified finanCial Planner™ in the U.S. CIMA® is a registered certification mark of the Investment Management Consultants Association® in the United States of America and worldwide. Chartered Retirement Planning CounselorSM and CRPC® are registered service marks of the College for Financial Planning®. As a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. These services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. For more information on the distinctions between our brokerage and investment advisory services, please speak with your Financial Advisor or visit our website at ubs.com/workingwithus. ©UBS 2017. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. CJ-UBS-1195171386
P012_CL_20190318.indd 12
Realize Your Vision
Female-Owned
SD WAN Collaboration Mobility
Managed Services
Proudly Celebrating 40 Years
www.tec4it.com
3/14/19 9:26 AM
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
|
PA G E 13
TECHNOLOGY
Rockwell recruits by raising brand awareness By Rachel Abbey McCafferty rmccafferty@crain.com @ramccafferty
Rockwell Automation Inc. has long helped manufacturers operate more efficiently. But as the industrial Internet of Things grows, the company needs to grow its software engineering talent base. “The software play for us is exciting,” said Shane Driggers, vice president of global talent for Rockwell. “As we position ourselves and our promises around expanding human possibilities, that resonates with candidates that are coming from traditional software companies: the ability for them to come into our organization and take the skills that they’ve developed and the experiences that they have and be able to apply them to Industry 4.0 and be a part of this next evolution of technology and manufacturing.” According to information provided by the company, Rockwell is looking to hire about 150 software engineers just in Mayfield Heights in fiscal 2019 — a 300% year-over-year increase. Companies in all industries are hiring software engineers right now, Driggers said. To stand out, Rockwell is trying to share its story and grow its recognition outside of its traditional industrial automation market. Rockwell Automation makes everything from products to monitor the condition of equipment to industrial sensors to conveyor systems. The company has had a lot of success, Driggers said, but has tended to be modest about it. Driggers came aboard almost two years ago from a big-box software company to help align Rockwell’s recruitment strategy with the companies from which it’s trying to recruit. For example, he works remotely in the Denver area, while most of the executive team is in Milwaukee. The company is changing some of its practices, such as hiring remote workers, to accommodate what employees in hightech fields are used to. Culture is as important as salary to candidates today, Driggers said. He
VR
CONTINUED FROM PAGE 10
After a chance meeting in Silicon Valley four years ago, Fiore said traditional Midwestern business values such as “responsiveness and honesty” convinced a VR leader like Oculus to choose his lens coater in Mentor rather than one in California. Experiencing 28% growth since 2014, and three Fast Track 50 awards, Fiore said there must be something in the water. He even joined CLEVR to dip into the XR talent pool. “I think it’s an appreciation for good service, the willingness to actually work with customers,” Fiore suggested. “I always give (Silicon Valley heads) a firm handshake and be honest. And they’ll say, ‘What part of the Midwest were you from again?’ ”
More than just gaming Although Zabala asserts he’s not the XR Belt’s self-proclaimed leader, he’s
P013_CL_20190318.indd 13
Azim Shaik, a member of Deep Rock, and his team finished second in the hackathon at Rockwell’s Mayfield Heights office. (Contributed photo)
Brown
Driggers
points to Rockwell’s commitment to diversity in areas like race and gender as selling points to candidates. “We know that diversity of thought, the diversity of experiences that people bring, is what makes this place and this company special, and is going to help us be able to build and create and innovate in ways that make us more competitive,” Driggers said. In February, Rockwell held a hackathon in Mayfield Heights, its first in North America. The company gave the 30 to 40 participants access to fictitious data, based on data from one of Rockwell’s manufacturing sites, to present them with a “semi-realworld problem” to work on, explained Marzell Brown. Brown has been at Rockwell in Mayfield Heights for about 20 years, mostly working in software quality. Thirteen years ago, when Rockwell was struggling to find the talent it needed, he started a high school internship program. definitely done a lot to encourage forays into the VR world beyond simply, as he put it, “gaming, gaming, gaming.” Just last year, after a self-published State of the Ecosystem report that officially aligned new Cleveland startups, Zabala began to vigorously promote other facets of the industry, such as his Channel XR, one of the first authorized resellers of headsets and downloadable software. He’s also working to orchestrate a conference with 20-some speakers downstairs, below his Agora office space, where he hopes to draw reps from HTC, Microsoft and Oculus. In line with his incubation shtick, Za-
“If you can get them earlier, you have a better chance of keeping them long-term,” Brown said. Now, having transitioned a couple years ago to a talent management role, he works to familiarize students at colleges and local high schools with Rockwell’s brand. That goes beyond career fairs to include guest lectures and lab development. Brown said Rockwell already does a great job hiring candidates right out of college, but it’s more difficult to attract mid-level workers. The target audience for the hackathon was individuals who had been out of college for three to five years, though participants weren’t limited to that. When Rockwell talks to students on campus, it gives them the chance to enter their data into a database. Rockwell uses that data to find potential hires in the future, Brown said. It also used it to reach out to potential participants for the hackathon. The company also did outreach on social media. Students and recent graduates often don’t have a good sense of what Rockwell does, Brown noted. For the most part, Rockwell has been a business-to-business company that operates behind the scenes, he added. Events like hackathons and open houses help grow recognition of the company, Brown said, as does increased engagement on college campuses.
LAND FOR SALE: Beacon West, Westlake
Prestigious Westlake Location! » Industrial Zoning with Many Allowable Conditional Uses » Prestigious High Visible Gateway Location » Can Accommodate up to 100,000 SF Building » $450,000 » $62,327/Acre Property Features Priced to Sell Last Two Available Parcels ● Quick access to I-90 and Crocker Park ● Enterprise Zone ● Major Business and Retail Area ● Stormwater Pond Installed ● Build to Suit Available ● ●
Lot 2R 7.226 Acre Parcel
VIKING PARKWAY
CONTACT US Charles Marshall or Terry Noonan 330-659-2040 3457 Granger Road, Akron, OH 44333
VISIT OUR NEW PROPERTY WEBSITE www.beaconmarshallproperties.com
bala is calling the event Harvest XR. Beacon Marshall Ad 3-4-Lot 2R.indd 1 “I just think all we need is a stronger community to prop each other up in the long run,” he said. “Sure, it’s already strong will the smaller companies. But we need to showcase this across the board. It’s all about tying groups together for the highest benefit.” At the end of that Friday afternoon, • Machine Learning Zabala drove 15 minutes to the Davis • ArtiƧcial Intelligence Aerospace & Maritime High School to demonstrate to faculty, retired pi• Business Intelligence lots and a classroom of kids the effec• Big Data tiveness of using VR in flight simulation. With headsets, wires, controllers and sensors stuck to the wall, it looked as if Zabala was some kind of mad scientist. But as the students walked in, their eyes lit up. After the demonstration, when the kids had left, someone commented, “I’ve never seen something like that in my life.” But to Zabala, it’s all business as usual. “Imagine in 25 years, 50,” he said. “I mean, where is the ceiling anyway? Once all this catches on, who knows where we’ll be?”
2/26/19 11:13 AM
Embrace
Data-morphosis
N�� �ɔ�Ǘ ɨǾǗ�Ǘ �� ��ư��̈́ Our data scientists solve and simplify complex business challenges, transforming your bottom line with a fresh competitive advantage.
pandata.co 3/14/19 1:29 PM
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
|
PA G E 15
THE LIST
Local Software Developers Ranked by full-time local employees
LOCAL FULL-TIME EMPLOYEES THIS YEAR COMPANY
TOTAL TOTAL CODERS 1-1-2019 1-1-2018 1-1-2019 INDUSTRY FOCUS
SOFTWARE PRODUCTS
MAIN LANGUAGES
YEAR FOUNDED TOP LOCAL EXECUTIVE
1
Hyland 28500 Clemens Road, Westlake (440) 788-4988/hyland.com
1,893
1,745
306
Health care, higher education, government, finance, insurance, manufacturing
OnBase enterprise content management software suite
C#, C++, C
1991
Bill Priemer, president, CEO
2
Quadax Inc. 7500 Old Oak Blvd., Middleburg Heights (440) 777-6300/quadax.com
772
769
84
Software development for health care revenue cycle management
HARP, PAS, Xpeditor
.NET Framework
1973
John Leskiw, president
3
MRI Software LLC 28925 Fountain Parkway, Solon (800) 321-8770/mrisoftware.com
421
420
141
Property management and accounting for the real estate industry
Residential Management, Commercial Management, Investment Solutions, Facilities Management
VB.NET, C#, Java
1971
Patrick Ghilani, CEO
4
OverDrive Inc. One OverDrive Way, Garfield Heights (216) 573-6886/overdrive.com
325
NA
80
Institutions (libraries, schools)
Libby, Sora, OverDrive
.NET Framework, C#, ASP.net
1986
Steve Potash, founder, CEO
5
OEC 4205 Highlander Parkway, Richfield (330) 523-1800/oeconnection.com
255
242
70
OEM distribution networks, serving dealership and repair customers
D2DLink, CollisionLink, RepairLink, ConsumerLink, MyPriceLink, Performance Coaching, Athoris, Service Menus
.NET Framework
2000
Charles Rotuno, chairman, CEO
6
Trimble Transportation (formerly TMW Systems) 6085 Parkland Blvd., Mayfield Heights (440) 721-2020/trimble.com
252
280
55
Transportation logistics software provider
TMWSuite, TruckMate, Innovative, TL2000, TMT Fleet Maintenance, TMT Service Center
C#, .NET Framework, Java
1983
Ray West, general manager
7
Foundation Software 17999 Foltz Industrial Parkway, Strongsville (800) 246-0800/foundationsoft.com
227
210
49
Accounting software for the construction industry
Foundation, Foundation mobile, Foundation Service Dispatch mobile
PowerBuilder, Delphi, C#, JavaScript
1985
Fred J. Ode, CEO, chairman, founder Mike Ode, president
8
BrandMuscle 1100 Superior Ave., Suite 500, Cleveland (216) 464-4342/brandmuscle.com
211
237
22
Local marketing software and services
BrandMuscle Integrated Local Marketing Platform
C#, SQL, JavaScript
2000
Mike Marchetti, EVP, Consumer Brands
9
MIM Software Inc. 25800 Science Park Drive, Suite 180, Beachwood (216) 455-0600/mimsoftware.com
132
111
33
Medical imaging
MIM, Mobile MIM, MIMcloud, MIM Symphony, MIM Encore, MIM Maestro
Java, Ruby on Rails, C++, Matlab
1999
Andrew Nelson, CEO
10
Patriot Software 4883 Dressler Road N.W., Suite 301, Canton (877) 968-7147/patriotsoftware.com
115
NA
21
Small businesses
Payroll, Accounting, HR, Time & Attendance, Recruiting
C#
1986
Michael J. Kappel, founder, CEO
11
n2y LLC P.O. Box 550, Huron (419) 433-9800/n2y.com
114
100
10
Special education online instructional materials
Unique Learning System, News2You, SymbolStix Prime, L3Skills, Positivity
.NET Framework
1997
Chrissy Wostmann, CEO
12
1 EDI Source Inc. 31875 Solon Road, Solon (440) 519-7800/1edisource.com
80
80
10
Electronic data interchange software and managed solutions
HQXchange, EDI HeadQuarters, ManagedXchange, PartnerXchange, IntelligentXchange, AS2 Complete
C# using .NET Framework
1989
John Onysko, founder, chairman, CEO
13
Keyfactor 6050 Oak Tree Blvd., Suite 450, Independence (216) 785-2990/keyfactor.com
70
NA
20
Cybersecurity for health care, finance, retail, automotive
Keyfactor Command, Keyfactor Control
C#
2001
Kevin von Keyserling, CEO, cofounder
14
New Innovations Inc. 3540 Forest Lake Drive, Uniontown (330) 899-9954/new-innov.com
68
60
18
Medical
Residency Management Suite, Undergraduate Management Suite
C#, Angular
1995
Steve C. Reed, CEO
15
FeneTech Inc. 260 Campus Drive, Aurora (330) 995-2830/fenetech.com
60
55
24
ERP solutions
FeneVision, Q2S, FENml
.NET Framework
1996
Ronald W. Crowl, president, CEO
16
Banyan Technology 31011 Viking Parkway, Westlake (844) 462-2269/banyantechnology.com
55
55
15
Freight management and live carrier connectivity
Banyan
C#, MVC4/5, SQL, JavaScript, XML
2001
Lance Healy, chief innovation officer
17
Binary Defense 600 Alpha Parkway, Stow (800) 246-2792/binarydefense.com
53
NA
12
Cybersecurity
Vision by Binary Defense, Threat Watch Overview
F#, Python, Go, JavaScript, C/ C++
2014
Mike Valentine, CEO, cofounder
17
e2b teknologies Inc. 521 Fifth Ave., Chardon (440) 352-4700/e2btek.com
53
47
5
Accounts receivable credit and collections software
Anytime Collect
ASP, .NET Framework, Java
2001
Bill Henslee, CEO, co-owner Lynne Henslee, president, coowner
19
7Signal 6155 Rockside Road, Independence (216) 777-2900/7signal.com
50
NA
30
Wireless network monitoring
Sapphire Eye, Mobile Eye
NA
2007
Tom Barrett, CEO
19
BuyerQuest Inc. 343 W. Bagley Road, Suite 300, Berea (866) 937-0670/buyerquest.com
50
50
25
Corporate purchasing
BuyerQuest eProcurement, BuyerQuest Marketplace, BuyerQuest Procure-to-Pay
PHP, JavaScript, Java, SQL, CSS/ SASS
2010
Jack Mulloy, CEO
19
HCL UrbanCode 1228 Euclid Ave., Cleveland (330) 554-2202/developer.ibm.com/urbancode
50
45
40
Software/technology
IBM UrbanCode Deploy, IBM UrbanCode Release, IBM UrbanCode Build, IBM UrbanCode Velocity
Java, JavaScript, node.js
1997
Brian J. Muskoff, director, UrbanCode Product Development
22
Tribute Inc. 1696-F Georgetown Road, Hudson (330) 656-3006/tribute.com
48
59
14
Industrial distribution, fluid power, fluid handling, hose, conveyor belt, gaskets, seals
Tribute Software, TrulinX Software
.NET Framework
1983
Timothy M. Reynolds, president, CEO
23
Main Sequence Technology Inc. 4420 Sherwin Road, Hamilton Hall, Willoughby (440) 946-5214/pcrecruiter.com
47
47
10
HR applicant tracking, recruiting CRM, staffing software
PCRecruiter, PCRecruiter Job Board, PCRecruiter Outlook Portal
Microsoft stack
1998
Martin H. Snyder, president Gretchen A. Kubicek, CFO
24
Pointe Blank Solutions Ltd. 30400 Detroit Road, Suite 400, Westlake (440) 243-5100/pointeblank.net
45
45
25
Health care, government
CasePointe, MatrixPointe Software
C#
2000
Thomas J. Coury, chairman, chief software architect
25
Data-Basics Inc. 600 Broadway Ave., Bedford (216) 663-5600/databasics.com
43
43
20
Construction, field service management and accounting
Sam Pro Enterprise, TechAnywhere for Android, DBAnalytics, CRMAnywhere, FMAnywhere
SmallTalk, Android, HTML, DBFrameWork
1974
Arthur K. Divell, CEO
26
Squirrels LLC 121 Wilbur Drive N.E., North Canton (855) 207-0927/airsquirrels.com
42 (1)
35
7
Education, business
Ditto, ClassHub, Reflector 3, Reflector Teacher, AirParrot 2, DropStream
C, C#, ObjectiveC, JavaScript
2012
Andrew Gould, CEO
27
FormFire LLC 1100 Superior Ave., Suite 1650, Cleveland (866) 448-2302/formfire.com
40
40
3
Health insurance
FormFire
.NET Framework
2006
Colin Ingram, CEO, cofounder
RESEARCHED BY CHUCK SODER (CSODER@CRAIN.COM)
Get all 49 companies, more executives and up to 10 years of data. Become a Data Member: CrainsCleveland.com/data Information is supplied by the companies. Send all feedback to Chuck Soder: csoder@crain.com.
(1) On March 13, Squirrels LLC announced it had split off its blockchain hardware sister company, Squirrels Research Labs, which has 11 employees. Its employees are included in the numbers listed here.
P015_CL_20190318.indd 15
3/15/19 11:03 AM
C RPA A IGNE’ S16C L E EA LA B U- S2I4N, E2S019 S | | SCERP A T EI N M’BSE C R L3E-V9E, L2A018 PA | VM R CNHD 18 N D B| U S I NGEE S17 S
AKRON
Barberton excited to see Lichter’s take on B&W site By Dan Shingler
Massages Facials Manicures/Pedicures
dshingler@crain.com @DanShingler
Body Wraps Eucalyptus Steam Room
Located on the 3rd Floor of the Cleveland Marriott Downtown at Key Tower 216.302.7426 | trilogycle.com
7.5 Acres of Land ZONED FOR OFFICE/RETAIL
SW Corner of Memphis Ave. at Tiedeman Road, Brooklyn, OH
New plans likely will be unveiled this fall for the roughly 25-acre complex that Babcock & Wilcox will vacate in Barberton sometime around July. The Barberton site has a buyer in a subsidiary of Stuart Lichter’s Industrial Realty Group of California. Lichter is one of the nation’s largest developers and developed B&W’s soon-to-be new home in Akron’s East End Development. Both Lichter and Barberton Mayor William Judge said the developer is moving ahead with plans to buy and redevelop the property. Lichter agreed to buy the property from B&W as part of the company’s move to Akron’s East End Development, the site of Goodyear’s former headquarters. The move was announced in September, when B&W — an energy and environmental technologies company — said it would move its Charlotte headquarters and its 600-person Barberton operation to Akron. “We’ve been taking his team through the site recently,” Judge said. Lichter is known for buying old in-
Development Incentives Available
By Dan Shingler
Contact City of Brooklyn, OH Office of Economic Development
216.635.4289 audris@brooklynohio.gov
Advertising Section
CLASSIFIEDS To place your listing, contact Katie Rozek at 313-446-0485 or email krozek@crain.com
Retail Space Here
BUSINESS FOR SALE
Thinking of Selling?
Free Market Analysis No Upfront Fees mike@empirebusinesses.com www.empirebusinesses.com 440-461-2202
www.craincleveland.com/classifieds
P016_017_CL_20190318.indd 16
dustrial properties such as Goodyear’s former site, the former Hoover Co. campus in North Canton and what was once B.F. Goodrich’s tire plant in Akron. The last spot on that list claims more than 2.5 million square feet of
One of UA’s heavy hitters in polymer research is leaving
FOR SALE
List Your
Stuart Lichter, whose Industrial Realty Group transformed the former Goodyear headquarters into East End, now will tackle the Babcock & Wilcox site in Barberton. (Contributed photo)
leased space as Canal Place. Lichter said he’s already talking to prospective tenants and is eager to get started. “We’re equally excited about it and hopefully we’ll have similar luck filling those buildings. … We think we will be able to repopulate them and bring a bunch of jobs back to Barberton. We haven’t closed on it yet, but we will,” he said. First, B&W has to move. After that, Lichter plans to purchase the site and announce a development plan for it in the autumn, he said. Judge said Lichter is about the best buyer Barberton could have hoped to get. “He knows the game. He knows what the state can give in incentives. He knows brownfield stuff. We’re not dealing with an amateur, by any means,” Judge said. In fact, Barberton might end up shedding a diminishing component of its tax and employment base for a component that grows, Judge said, noting that B&W has been shrinking for decades. The company went from 3,000 to 5,000 employees in town in the 1970s and ’80s to about 1,400 five years ago and only about 600 today. B&W has
dshingler@crain.com @DanShingler
The University of Akron’s polymer program is losing a big-league researcher and his staff to Duke University, but officials vowed to continue investing in the school’s College of Polymer Science and Polymer Engineering. Dr. Matthew Becker announced March 5 on Twitter that he’s moving to Duke, along with his lab and 13 staff members. “I am excited to let you all know that the Becker Lab @MLBeckerGroup will move to Duke University @DukeU starting August 1, 2019! We are excited for the future and humbled by the opportunity to work with new colleagues in @DukeChemistry, @DukeMEMS and @DukeOrtho!” Becker wrote in a tweet now pinned to his lab’s Twitter page. Becker has been a standout researcher at UA, a vocal supporter of the polymer college and a critic of losses in faculty and polymer researchers in 2017 and 2018. He declined to be interviewed about the specific reasons for his departure, saying only in two brief emails that he’s taking his lab staff, mostly graduate and doctoral students, with him to the North Carolina school because “I have decided the best path forward for me and my research team.” Becker and his group, who have been working on medical technologies such as a polymer-based delivery system to administer low doses of
3/13/19 1:12 PM
painkillers at the surgical site during operations, will work with Duke in the areas of chemistry, mechanical engineering, material science and orthopedic sur- Becker gery, he said. Becker brought both recognition and funding to Akron. At the end of 2017, he was awarded a $2 million grant from Ohio’s Third Frontier program, its largest grant to a university at that time, according to the University of Akron’s website. Administrators said they’re disappointed to see Becker and his team leave but happy that they are going to a prestigious school like Duke, which reflects positively on UA. “It’s always sad to lose a good colleague, particularly a colleague of high stature in his career like Becker,” interim university president Dr. John Green said. “But people have to do what’s best for their career and family, and he’s been offered an incredible position — and a position he deserves.” Green continued, “Even though it’s sad, it reflects positively on us that we have a person that a school like Duke wants to hire. And we remain strongly committed to the polymer department.” Polymer college interim dean Dr. Ali Dhinojwala said he, too, was saddened by Becker’s departure but added that he’s optimistic about the future of the college in light of recent investments by the university.
Dhinojwala said he’s been able to hire three new doctorate faculty members in recent months and is in the process of hiring a fourth. They each will run their own labs and perform research at Akron. “Three of them have already accepted and are going to join in the fall,” Dhinojwala said. “We’ve put in all the investment that will be necessary for them to start here. … The fourth person is also very close to accepting, and we are finalizing the offer this week.” Green said that although the university continues to go through a restructuring — it recently put a reorganization plan on a temporary hold — it remains committed to funding its polymer college. “When we finished our program review last summer, there was a lot of focus on the programs we decided to phase out, but I think an even more important part was that we designated areas for investments,” Green said. “And the polymer science and engineering colleges were both targeted for investments. … We really have to build on our strengths, and these are areas of strength. So supporting these colleges is certainly a priority.” In addition to hiring the new faculty members, the polymer college also received funding to hire five technical staff members, all doctorates, who will help faculty and researchers with labs and equipment, Dhinojwala said. “We were successful in hiring all five of them, and the last one will be joining us in April,” Dhinojwala said.
3/15/19 2:30 PM
Bab tran mov
gon city’ five A likel are add B Nor grow whi erat com expa note Je SVN
03-07John S Grimm.qxp
CRAIN’S CLEVELAND BUSINESS
AKRON
e
g to r to
and fillwe and berbut
hat, and or it
best d to
ows ves. not any
up nent or a aid, king
0 to 970s ago has
2/23/2016
Babcock & Wilcox’s complex on Van Buren Avenue in Barberton will be transformed into office and light industrial space after the company moves its headquarters to Akron. (CoStar)
gone from representing 20% of the city’s tax base to just 10% in the past five years, the mayor said. Any companies Lichter brings in likely will be in growth mode or likely are moving into town — or both, he added. Barberton already got one of the Northeast Ohio operations of B&W’s growing nuclear power subsidiary, which spun off in 2015 and now operates as BWX Technologies Inc. The company is investing $80 million to expand in Barberton this year, Judge noted. Jerry Fiume, managing partner of SVN Summit Commercial Real Estate
n g
Group in Akron, said the project will be a challenge but Lichter is likely to deliver. “Barberton is going to love that,” Fiume said when told of Lichter’s intentions. “If he can bring in another out-of-town user, like he did bringing B&W back from Charlotte, that net job growth would be critical. And he’s the guy who could pull that off.” Don’t expect fancy loft apartments, restaurants and retail, though. Lichter said the Barberton site doesn’t lend itself to that. Instead, he plans to mostly keep the property office space with some industrial space, as it is now, but with
significant redevelopment and improvements. Lichter declined to say what he expects to pay for the property. What level of investment will be required is yet to be determined, but he said it will be significant. In the meantime, however, Judge said the city is taking a top-to-bottom look at all of its operations to find cost savings and ensure efficiency. In addition to losing more than $1 million a year in B&W-related tax receipts during the past five years, the city also lost $1.5 million in annual funding from Ohio’s Local Government Fund and about $450,000 per year to the estate-tax cut. Judge said he’s been a bit let down by the lack of assistance the city has received from the state following the announcement that B&W would move. To Barberton, that’s about as bad as losing the GM plant is to Lordstown, with the saving grace being that at least workers won’t have to move to work in Akron, Judge said. “They’ve all been very nice,” he said of state officials, “but this hit the news in September of ’18 and after that I had no communications and no one from JobsOhio or anyone else reached out to help. … I was hoping for some more proactiveness from the state,” Judge said. However, he said he’s met with Gov. Mike DeWine and that Barberton now is getting more attention from the state that Judge hopes will lead to help in terms of development and bringing jobs to the city.
|
10:43 AM
Page 1
M A R C H 18 - 2 4 , 2 019
|
PA G E 17
SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt
Call For Pricing!! Minimum Delivery:1Pallet
1-800-547-1538 Salt Distributors Since 1966
CBIZ Is Growing
e to ulty s in They per-
acthe ut in cesThe ace of-
unia reeorhold ding
We are pleased to welcome the Institutional Services Practice of Sequoia Financial Group to CBIZ Retirement Plan Services and CBIZ Investment Advisory Services.
ram a lot ded ven we nts,”
DEFINED CONTRIBUTION SERVICES | ACTUARIAL SERVICES CORPORATE INVESTMENT SERVICES | PENSION PLAN ADMINISTRATION
and tarally and uply a
culalso hniates, hers wa-
g all l be aid.
6050 Oak Tree Blvd., Suite 500 | Cleveland, OH 44131 216.447.9000 | www.cbiz.com/retirement CBIZ Retirement Plan Services is a trade name under which certain subsidiaries of CBIZ, Inc. (NYSE Listed: CBZ) market investment advisory, investment management, third party administration, actuarial and other retirement plan services. Investments, investment advisory and investment management services offered through CBIZ Financial Solutions, Inc., Member FINRA, SIPC and SEC Registered Investment Adviser, dba CBIZ Retirement Plan Advisory Services. Investment advisory and investment management services may also be offered through CBIZ Investment Advisory Services, LLC, SEC Registered Investment Adviser. Third party administration, actuarial and other consulting services offered through CBIZ Benefits & Insurance Services, Inc. Investment management services to individuals, corporations, trusts, endowments and foundations offered through CBIZ Investment Advisory Services, LLC, SEC Registered Investment Adviser. Investment management services to governmental and/or municipal defined benefit plans, 457 plans and related individuals provided by CBIZ Investment Advisory Services, LLC, dba CBIZ InR and dba CBIZ Retirement Plan Services. © Copyright 2019. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved.
P016_017_CL_20190318.indd 17
3/15/19 2:29 PM
PA G E 18
|
M A R C H 18 - 2 4 , 2 019 |
AMAZON
CONTINUED FROM PAGE 1
“Our clients always seem confused by the Cleveland-area economic development network,” one economic development pro with a national practice said in an email at the time. “In most other places, you might deal with the state economic development agency, a regional group and a municipality. But regardless of who you call first, the project will be handled the same. In Northeast Ohio, who you contact first will dictate how the project is handled and what assistance (financial and otherwise) is provided.” If there was disunity, it didn’t last long. For this proposal, more than 20 organizations and over 90 individuals from throughout the community came together. The result, the city of Cleveland said when it recently released the full report, was “a strong, compelling case” to present to Ama-
CRAIN’S CLEVELAND BUSINESS
zon for coming to Cleveland. The city had sought to keep the report confidential, but it was made public after a public records request pursued by WEWS-TV forced public disclosure. The disclosed document showed that within six weeks, the organizations produced one well-designed, 220-page bid — a main report of 19 color pages plus 201 pages of appendix — that offered $3.5 billion in financial incentives and a number of new ideas that, the organizations hoped, would catch the eye of Amazon’s site-selection team. The document included letters of
support from the Northeast Ohio congressional delegation, the region’s state legislators and, importantly, the mayor of Akron and the Summit County executive, even though the bid anchored Amazon in downtown Cleveland. It also included letters signed by executives of three major downtown property owners — Doug Price, CEO of the K&D Group; Doug Miller, then president and CEO of Jacobs Real Estate Services; and T.J. Asher, president of Weston Inc. In their letters, the trio pledged to make a total of 9 acres they owned available for the first stages of
Amazon’s 10- to 15-year build-out. The properties they represent included 877,000 square feet of office space — radiating from Terminal Tower and the Post Office Plaza — and room for an additional 4.7 million square feet of space nearby and in the Flats. Among the key participants in preparing the bid, besides Cleveland, were Cuyahoga County, the Downtown Cleveland Alliance, the Greater Cleveland Partnership (GCP), JobsOhio, the Northeast Ohio Areawide Coordinating Agency, Team Northeast Ohio, Cleveland State University and Dix & Eaton Inc., a Cleveland marketing firm that put together the four-color document. Key project leaders were Deb Janik, senior vice president of real estate and business development at GCP, and Mary Cierebiej, a senior director for project management, site selection and talent at Team NEO, the regional economic development nonprofit linked to JobsOhio, the state development nonprofit. Valarie J.
Advertising Section
PEOPLE ON THE MOVE To place your listing, visit www.crainscleveland.com/people-on-the-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com. ACCOUNTING
LAW
LAW
NONPROFITS
BDO
Tarolli, Sundheim, Covell & Tummino LLP
Schneider Smeltz Spieth Bell LLP
Koinonia Homes
Tarolli, Sundheim, Covell & Tummino LLP is pleased to welcome Samantha R. Smart to the firm’s partnership. Ms. Smart focuses her practice on patent and trademark preparation and prosecution, as well as proceedings before both the Patent and the Trademark Trial and Appeal Boards. She counsels clients through many intellectual property (IP) issues, including IP strategy, licensing, and infringement actions. She also has experience in obtaining foreign and international patent (PCT) protection.
David M. Lenz was elected to serve on Schneider Smeltz Spieth Bell’s Executive Committee. He has been instrumental in spearheading several important operational initiatives at the firm, is an active leader in the Estate Planning Section of the Cleveland Metropolitan Bar Association, and has achieved national recognition as a speaker on Digital Assets in Estate Planning. David is certified by the Ohio State Bar Association as a Specialist in Estate Planning, Trust, and Probate Law.
BDO USA, LLP, one of the nation’s leading professional services firms, has announced that Gary Isakov has been appointed to co-lead the firm’s Canada and Israel international desks. In this role, Mr. Isakov will help organizations grow and deepen their international footprint, advising on crossborder accounting, auditing, tax, and advisory services. He will act as a liaison between BDO in Canada, Israel, and the United States.
Diana Rosa has joined Koinonia as Chief Quality Officer. Rosa brings career-long quality and performance improvement management experience to the newly created position and leads a cross-functional team in the Department of Quality and Organizational Learning. Tapping her more than 30 years of experience, Rosa brings to the position the ability to streamline processes and enhance performance through the use of data-informed management and evidencebased practices.
LAW
PEOPLE ON THE MOVE
Gallagher Sharp LLP LAW
Schneider Smeltz Spieth Bell LLP
Schneider Smeltz Spieth Bell LLP
James R. Bright has been elected to the newly formed Executive Committee (EC) at Schneider Smeltz Spieth Bell LLP. The EC will work in collaboration with James D. Vail, Managing Partner, to lead the firm and its operations. Mr. Bright focuses his practice on estate planning and trust administration, in addition to offering tax advice to individuals and families. He is extensively involved in charitable activities and is a Fellow in The American College of Trust and Estate Counsel (ACTEC).
Jennifer A. Savage is now a member of the newly formed Executive Committee (EC) at Schneider Smeltz Spieth Bell LLP. Ms. Savage will work with the EC to identify and pursue mid and long term strategic initiatives to position the firm to continue to provide excellent service to clients. She advises primarily high net worth families in estate planning and is a past President of the Estate Planning Council of Cleveland and a Fellow in the American College of Trust and Estate Counsel (ACTEC).
P018_CL_20190318.indd 18
Gallagher Sharp LLP is pleased to announce that Iva M. Cindric has joined the firm as an Associate. Ms. Cindric is a member of the firm’s Appellate and General Litigation Practice Groups. She joined Gallagher Sharp after serving as a Judicial Attorney to the Honorable Timothy P. Cannon, Court of Appeals, Eleventh Appellate District in Warren, Ohio. Prior to her legal career, Ms. Cindric was a Registered Nurse at a Cleveland hospital. For more information, see www. gallaghersharp.com.
NEW GIG? Preserve your career change for years to come.
Plaques • Crystal keepsakes Frames • Other Promotional Items
C O N TA C T
LAW
Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569
McCall, Cleveland’s chief of communications, government and international affairs, coordinated the bid, which was submitted by the city. Cuyahoga County Executive Armond Budish and others emphasized that the scope of the project and the six-week deadline brought a higher level of teamwork than usual. “We learned to work collaboratively on a short time frame,” he said. “Now, we have the expertise of coming together on an important project. Next time we’ll be more ready.” Janik said people cleared their calendars for six weeks. “It was a tremendous collaboration,” she said. “It was exciting to see the mobilization and response from everyone who came to the table.” The deal they put together offered a package worth nearly $3.5 billion, mostly in future taxes foregone, in exchange for Amazon investing $5 billion (though much of that would come from the taxes it wouldn’t be paying) and bringing more than 40,000 jobs. If fully built on the timetable Amazon laid out in its proposal, as much as $803.4 million in payroll and property taxes would have been foregone by the city of Cleveland and as much as $646.4 million would have been redirected to Amazon from Cuyahoga County sales taxes created by the new headquarters and its workers. JobsOhio, the nonprofit that uses the state’s liquor profits to support economic development, offered $250 million, including $200 million that Amazon could use as capital for fixed investments and employee relocation expenses. The state of Ohio offered up to $1.35 billion, including as much as $960 million for a Job Creation Tax Credit. “A couple of things that were different about this one was the public scale with which it was done,” said Christine Nelson, vice president of projects, sites and talent at Team NEO. “That brought in a lot of other parties in a really short period of time. It was great having them so intimately involved at such a high level, and we learned a lot from them. A lot of times we’ll reach out and get feedback, but it’s not that same real working group concept that we had here, which was good.” The outcome of Amazon’s very public process — which ended with the company deciding to locate some of HQ2 in Northern Virginia and a rejection of a planned co-location in Long Island City, N.Y. — has escalated the debate over the value of throwing millions, even billions, of dollars in financial incentives at companies that may be using an open site-selection process as leverage to extract a better deal from a preferred location. Edward Rybka, Cleveland’s chief of regional development, said cities don’t set the rules of the process. “We might prefer not to offer financial incentives to attract economic development, but that is the reality of life,” he said. “If we want to compete, it’s what we’re going to have to do.” For David Ebersole, director of economic development for the city of Cleveland, the bid brought into focus what the community has to sell to businesses scouting new locations or existing businesses that are deciding whether to grow in Northeast Ohio or elsewhere. “When we put everything on the table at once and you see it all out there comprehensively, it really tells a great story,” he said in a phone interview. “You tell this story day-today, but when you actually sit down and put it all together and spell it out, you see really see how many assets we have in this community.”
3/15/19 3:03 PM
es?
CRAIN’S CLEVELAND BUSINESS
|
M A R C H 18 - 2 4 , 2 019
|
PA G E 19
SOURCE LUNCH
Thomas Caldwell
CLEVELAND BUSINESS
President and CEO, Middlefield Banc Corp. A Shalersville native who has devoted nearly 45 years to community banking in Northeast Ohio, Thomas Caldwell worked his way up from bank teller to top executive at the $1.2 billion-in-assets Middlefield Banc Corp., the parent organization of the Middlefield Banking Co. Experience, coupled with lifelong work in Ohio and an outspoken personality, have steered him to a number of industry trade groups throughout his career, from the Independent Community Bankers of America (ICBA), where he is a former state delegate, to the Community Bankers Association of Ohio (CBAO), which he currently serves as director at-large. Crain’s sat down with Caldwell to discuss his views on the market today, the challenges facing smaller community banks and what objectives are top of mind at some of those trade groups. Our conversation was edited for length and clarity. — Jeremy Nobile
The Caldwell file First job? Selling shoes at Fisher’s Big Wheel in Streetsboro
If not in banking, what would you be doing? Not sure what, but something in working with the public.
If you could have a drink with anyone alive or dead? My father, Dale Caldwell, who died when I was 18.
Something people may not know about you? I love cooking and baking.
Lunch spot Welshfield Inn 14001 Main Market Road, Burton 440-834-0190
The meal One had the blackened salmon with legumes, sweet corn, teardrop peppers, feta and honey-lime vinaigrette. The other had the sweet Vidalia salad.
The vibe Nestled in a more rural area of Geauga County, the restaurant captures a quaint yet upscale feel at its manor-like venue.
The bill $29.87, plus tip
CSU
CONTINUED FROM PAGE 1
The year before, the tally was 85%, and CSU’s $114,648 in ticket sales in 2016-17 marked a drop of nearly $341,000 in a five-year span. “The other part of it,” Sands said of the AD position, “which is also important to a university like Cleveland State at our part in our evolution, is how athletics is a window on the university to the folks who have not been exposed to who we are and what we are and where we’re going. That has value to us. Athletics can be an incredible way for us to show our campus to those who don’t normally get access to it.” At CSU, that starts with a men’s basketball program that is best known for a run to the Sweet 16 of the NCAA tournament in 1986. In the 33 seasons since, however, the Vikings have played in just one NCAA tournament — 2009, when they advanced
P019_CL_20190318.indd 19
You got involved with the banking associations back in the early 1990s. How are those groups useful today? Do they do more than just lobby? The trade association provides banks access to products and services that might be too costly to develop within. The trade group does due diligence, which we will still do ourselves if we move forward with something as an individual bank, but it’s a base to start from. There’s also great education on issues, career-track education. And then there’s the advocacy, which is more on the political side. As someone plugged in with banks across the state and beyond, how would you describe the state of the banking industry today from your perspective? Obviously, all banks benefited from the new tax law, so everybody had really good years last year, including us. We had a 31% increase in net income, half of which was related to tax and the other was organic. Overall, for community banks, it’s very stable right now with a lot of opportunities out there. I wouldn’t say it’s huge growth, but steady, planned growth, which I always prefer over the peaks and valleys. I like it steady. There are some 200 banks in Ohio today, yet there are a lot of small community banks with one or two offices tucked away in small communities, usually ones bigger banks have ignored. Community banking has always been near and dear to me because I think they can be the lifeblood of a community. We always say the success of the bank is dependent on the success of the communities we serve. But overall, banking in Ohio right now is very stable.
to the second round — and their attendance at the Wolstein Center has been a small fraction of the arena’s 13,610-seat capacity.
‘A sleeping giant’ CSU — after a surprising run to the Horizon League championship game in 2018, Dennis Felton’s first season as the head coach — was 10-21 and didn’t qualify for the conference tournament this past season. The Vikings drew an average of 1,115 fans per game in ’18-19 — a norm that is the worst in the history of the Wolstein Center and the school’s lowest since at least 1977-78, the last year in which the NCAA has per-school data for college hoops. The three worst attendance norms in the Wolstein Center era have occurred in the last three seasons. “Am I happy with the wins and losses on the scoreboard? No,” Sands said. “Do I see progress? Yes.”
Are you feeling any more or less optimistic about the banking environment in 2019? I would say I’m cautiously optimistic, but I’m not an economics guru. You hear these warnings signs about how much longer the economy can grow. The markets have had their ups and downs, so how much will that impact business? When I look at Middlefield, we have a lot of great opportunities. But community banks across the state have a preponderance of commercial real estate loans in loan portfolios. That’s an area where we’re starting to hear more from regulators, so we want to be careful there. But the risk there is more dependent on underwriting standards and how much risk you’re willing to take and the analysis you do on those loans before you take them.
seeing as much of that in the last month or two as we maybe saw a year ago.
Are banks loosening their underwriting nowadays? The old adage in banking is banks make their best loans when times are bad, and they make their worst loans when times are good. I think the time period between those times is getting shorter. There are a lot banks out there who are kind of scrambling and fighting for the same loans. And we have seen — not with everybody, or all commercial banks, but some larger regional banks — some loosening of underwriting standards. But I don’t want to paint a broad picture of all of them. It really depends on the risk tolerance at your bank. But what we’ve seen is some personal guarantees have gone away, perhaps the amortization is being stretched out a bit longer. The debt-service coverage is perhaps a bit lower. But I’m not
As far as those trade groups go, like the CBAO and ICBA, what’re some topics on their to-do lists in 2019? ICBA, they want to continue looking for regulatory relief and regulations that are tiered for community banks versus larger banks. We’re also looking at the competitive landscape. There are a lot of fintech companies out there now and a lot of lending services that don’t fall under the same regulations we fall under, so how is that fair? And I don’t want to beat up on credit unions, but when you look at some of the big national ones out there, and they continue to get expanded powers, plus they’re not paying taxes — how is that fair? The big banks won’t care because it’s not competition to them, but it is for us. So that’s one thing we try to advocate.
Len Komoroski, the CEO of the Cavaliers and Quicken Loans Arena, is the chair of Cleveland State’s athletics committee and is on the search committee for the director of athletics position. He said “there’s no reason why” the Vikings can’t be a strong midmajor program, pointing to the successes of Butler, a former member of the Horizon League, and Gonzaga universities. Komoroski said he believes CSU’s hoops program is “a sleeping giant” — an assessment that’s shared by Mike Alden, who retired in 2015 after 17 years as the AD at the University of Missouri and currently is a senior adviser to Sands. Alden is serving as an athletics consultant as the Vikings search for a permanent AD — a job the 60-year-old Missouri resident, teacher and parttime consultant said he has no interest in filling. Alden said the men’s basketball program is the athletic department’s “biggest asset,” and getting the
most out of it “is critical” to CSU. A handful of visits to Cleveland State in the last three months have left quite a few positive impressions — most notably the athletics department’s staffers and “a beautiful campus in a city that’s on a renaissance,” Alden said. What the veteran AD has also noticed is a leadership gap, and a significant need for a director of athletics to make greater inroads with the Northeast Ohio community. “I think there’s been somewhat of a lack of focus on determining what are our priorities, what are our resources and how do we dedicate resources to those priorities?” Alden said. “I think there’s been a lack of understanding and inclusion on those particular priorities.” For the next AD, the first two years will be “a grind,” during which the new hire will need to focus on staff development and building partnerships inside and outside CSU, Alden said.
Everyone is fighting for deposits nowadays, right? Is that a challenge? It is because that’s what we use to fund loan growth. We’re seeing a lot of specials out there because everyone is trying to grow core deposits, offering a lot of high-rate CDs, and that puts pressure on margins. So how do you stabilize that margin? I see that as a challenge going forward. It’s really competitive out there. I like to say this is a great market for the consumer because they can find some great opportunities in CDs that pay better than 2%. It’s been a number of years since you could earn 2% on a CD.
700 W. St. Clair Ave., Suite 310 Cleveland, OH 44113-1230 Phone: (216) 522-1383 www.crainscleveland.com Twitter: @CrainsCleveland Publisher/editor Elizabeth McIntyre Group publisher Mary Kramer Managing editor Scott Suttell Sections editor Michael von Glahn Creative director David Kordalski Web editor Damon Sims Associate editor/Akron Sue Walton Assistant editor Kevin Kleps Senior reporter Stan Bullard, Real estate/construction Reporters Jay Miller, Government Dan Shingler, Energy/steel/auto/Akron Rachel McCafferty, Manufacturing/ energy/education Jeremy Nobile, Finance Lydia Coutré, Health care/nonprofits Senior data editor Chuck Soder Cartoonist Rich Williams Events manager Ashley Ramsey Marketing coordinator Megan Lemke Integrated marketing manager Michelle Sustar Managing editor custom/special projects Amy Ann Stoessel Associate publisher/Director of advertising sales Lisa Rudy Senior account executives Dawn Donegan, John Petty Account executives Laura Kulber Mintz, Loren Breen People on the Move manager Debora Stein Office coordinator Denise Donaldson Pre-press and digital production Craig L. Mackey Media services manager Nicole Spell Billing YahNica Crawford Credit Thomas Hanovich Crain’s Cleveland Business is published by Crain Communications Inc.
Chairman Keith E. Crain Vice chairman Mary Kay Crain President KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong CFO Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Reprints: Laura Picariello, 732-723-0569 or lpicariello@crain.com Customer service and subscriptions: 877-824-9373 Volume 40, Number 11 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the last week of December, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2019 by Crain Communications Inc. Periodicals postage paid at Cleveland, OH, and at additional mailing offices. Price per copy: $2.00. Postmaster: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. 1-877-824-9373. 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, MI, 48207-9911, or email to customerservice@crainscleveland.com, or call 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
Sands, who is doing just that in his first year on the job, is looking for a similar mindset in the next director of athletics. “I gotta have somebody who’s built something and is like our students, like me: scrappy,” the Cleveland State president said. “Yeah, we’ll build it, we’ll invest in it, but you gotta paint a vision. There are people who have done this at places that are small.” Sands mentioned George Mason — a Fairfax, Va., university from which he has a law degree. After the Patriots advanced to the NCAA men’s Final Four in 2006, admissions inquiries increased 350% and out-of-state applications jumped 40%. That might seem unrealistic for CSU, which has won a total of 20 conference games in the last four years, but the university president said he believes otherwise. “It takes a couple of runs, but I also think a way to get there is if we build a consistent winner,” Sands said.
3/15/19 3:09 PM
The News Over Brews event series will bring editorial topics to life. Join us for the first happy hour discussion that will delve into NEO’s film industry. Nolan Gallagher, CEO, Gravitas Ventures (distributors of the true-crime documentary “Abducted in Plain Sight” and many more) Patrick Shepherd, associate director, Cleveland International Film Festival
MARCH 25 • 5 PM METROPOLITAN AT THE 9
Scott Suttell, managing editor, Crain’s Cleveland Business Mike Wendt, local filmmaker and producer, “Julie of the Jury” (screening March 28 at the Cleveland International Film Festival)
MORE INFORMATION: CRAINSCLEVELAND.COM/NEWS/BREWS SPONSORSHIP OPPORTUNITIES: Lisa Rudy • LRudy@crain.com EVENT/REGISTRATION QUESTIONS: Email • CLEvents@crain.com
CL_031819_FP Template.indd 3
3/13/19 4:54 PM