Issuu

Look Back: Hopkins’ expansion PAGE 23

Hall of Fame Village confident in plan. PAGE 3

CRAINSCLEVELAND.COM I AUGUST 3, 2020

HEALTH CARE

Important medicine for combating COVID-19 Local health systems work to offer accurate advice, best practices BY LYDIA COUTRÉ

REAL ESTATE

TAXING SITUATIONS

Residential abatements remain a fraught, and complicated, topic in Cleveland

Carla and Ronald Calhoun sit on the front porch of their home in Cleveland’s Hough neighborhood. The couple built their house in the early 1990s and took advantage of the city’s long-running tax abatement program. | MICHELLE JARBOE/CRAIN’S

| BY MICHELLE JARBOE

Ronald and Carla Calhoun were pioneers in Cleveland’s Hough neighborhood in the early 1990s, when they built a new home as part of a wave of residential construction. Their property tax abatement, through a city program meant to lure new residents and spur investments in housing, ended more than a decade ago. Yet the Calhouns haven’t moved. And they don’t plan to, though they’re worried that some of their longtime neighbors might be forced out by rising tax bills.

Just west of downtown, Tom and Anita Cook are settling into their new home on Duck Island — their second residence to carry 15 years of abatement. Late last year, they sold a four-level house in Tremont in favor of a built-from-scratch project that will let them age in place. See ABATEMENT on Page 21

GOVERNMENT

Energy Harbor’s buyback plan could come back to bite HB 6 Company had $300 million increase in stock buyback authorization after securing subsidies BY DAN SHINGLER

Energy Harbor, the principal recipient of the $150 million in annual subsidies awarded by 2019’s now-tainted House Bill 6, might have inadvertently given those who now want to repeal that law some potent ammunition.

The company’s $300 million increase in its stock buyback authorization in May now has Columbus politicians rankled — and using it to support repeal. “I reject the whole premise of a bailout at this point. After we handed FirstEnergy a billion-dollar-plus bailout … they want to spend $300 million on a stock buyback?” said state

NEWSPAPER

Rep. Casey Weinstein, D-Hudson, one of the lawmakers now on a death stalk of the law. HB 6 was enacted to prop up Ohio’s two nuclear power plants, Davis-Besse near Toledo and the Perry Nuclear Power Plant in Lake County. See HB 6 on Page 20

“AFTER WE HANDED FIRSTENERGY A BILLIONDOLLAR-PLUS BAILOUT … THEY WANT TO SPEND $300 MILLION ON A STOCK BUYBACK?” — State Rep. Casey Weinstein, D-Hudson

Hearing a need among community members for clear information about best practices to mitigate risks of COVID-19, University Hospitals in early May launched a toolkit to help businesses navigate returning to work. First the system heard from leaders of essential services, then more and more businesses and community members asked for help understanding safety practices: masking, distancing, cleaning protocols and more. As the requests grew, UH wanted to get information to a broader audience than just those who had reached out. “I think we quickly realized that this needed to be content that stood up so it was available to everyone in the community, not just the people we were able to work with one-on-one,” said Dr. Joan Zoltanski, UH’s chief experience officer who has been leading the system’s Healthy Restart efforts. In the past three months, the UH Healthy Restart Playbooks — free online, up-to-date resources for employers and schools — have been downloaded thousands of times. Cleveland Clinic was hearing similar requests for information from the community and launched its own support system for businesses shortly after UH. The Clinic’s AtWork program offers COVID-19 response resources, including webinars, industry-specific guides and a hotline for advice. “The top three things that people are asking of us that we’re working for and working with is interpretation, clarification and translation,” said Dr. James Merlino, the Clinic’s chief clinical transformation officer. See COVID-19 on Page 22

CRAIN’S

EXCELLENCE IN HR 2020

Profiles of this year’s award winners | PAGES 8-15

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SPORTS BUSINESS

Hall of Fame Village remains confident in $900 million plan CEO with Disney ties and recent merger are key cogs expected to get Canton project rolling BBY KEVIN KLEPS

Money matters

Stuart Lichter’s biggest concern about the Hall of Fame Village project wasn’t securing financing for a massive mixed-use development that is expected to approach $1 billion. Sure, the starts and stops because of funding issues were a problem. But Lichter, whose Industrial Realty Group is the developer of the Canton project, fretted more about building “a world-class staff” that could manage everything the Village was supposed to be. “I knew we didn’t have the talent beyond the real estate aspects. And you can’t finance the real estate aspects without the staffing in place,” the IRG chairman said. “So the team we put together is essential.” The key hire was Michael Crawford, a former Disney and Four Seasons executive who was named CEO of Johnson Controls Hall of Fame Village in late 2018. Crawford’s 24-year run at Disney included directing the development of Shanghai Disneyland. “To get someone of that talent to come to Canton to lead this project should be inspiring to any investor,” Lichter said. As an outsider, Crawford viewed the project, which was announced in 2015 and would build around the Pro Football Hall of Fame, as so many others did. He was excited about what was possible, especially with the ultra-powerful NFL brand as a major draw.

By 2025, the Hall of Fame Resort & Entertainment Company expects to generate $147 million in revenues. The sources of income, according to an investor presentation, are as follows: ``Waterpark: 25% ``Tom Benson Hall of Fame Stadium: 17% ``Sponsorships: 17% ``Hotels: 16% ``Hall of Fame Media: 9% ``Youth sports complex: 5% ``Fieldhouse and convention center: 3% ``Center for Excellence: 2% ``Retail center: 1% ``Other: 5% The management teams hopes the second phase of the Hall of Fame Village project will be completed in 2023. | CONTRIBUTED RENDERING

“When I came in, one of the first things I did was appreciate the vision, look forward to it, but really break it apart and say, ‘What are the things that are going to create a destination for us now?’ ” Crawford said. “And we’re fortunate in the fact that we have lots of land that we can work with.” What Crawford and his team had to figure out: “What’s achievable and what’s financeable?” Financing a project that originally was unveiled with an estimated $476 million price tag and doubled in projected costs within a few years

brought its share of obstacles. And while Hall of Fame Village remains a long way from the end zone, its management team believes the July 1 merger with Gordon Pointe Acquisition Corp. is what will get the ball moving once again.

Piece by piece The deal with Gordon Pointe, a Pittsburgh-based special purpose acquisition company, was valued at $390 million. It produced a combined entity, Hall of Fame Resort & Entertainment

Co., whose common stock and warrants are being traded on the Nasdaq exchange. It also brought an infusion of capital — more than $30 million, Crawford said six days after the merger was finalized, plus another $40 million in public equity that the group expects to raise. Tax increment financing is expected to produce at least $60 million, funding from Constellation’s Efficiency Made Easy program will generate another $30 million, and Crawford expects a construction loan of at least $200 million to be in place this fall.

All told, that’s expected to be more than enough to finance Phase II of the project, which calls for an indoor waterpark, two premium hotels, a center for excellence with office and dining options, a performance center featuring a fieldhouse and convention center, and a retail promenade. The $300 million second phase, which Crawford hopes will be capped by the completion of the waterpark in the third quarter of 2023, follows an initial $250 million investment that was highlighted by the renovation of Tom Benson Hall of Fame Stadium and the construction of the National Youth Football and Sports Complex. See HALL OF FAME on Page 19

In a hot summer, an ice rink forms in Warrensville Heights Mayfield Curling Club is raising funds as it converts 18,000-square-foot space into a new headquarters BBY STAN BULLARD

The Mayfield Curling Club is installing a new ice rink at leased space in Warrensville Heights, but with its move to the new suburb late this year, its name is unlikely to change, as the outfit has a history dating back to 1962. Moreover, the Mayfield name comes not from the east suburban village or city, but from Mayfield Sand Ridge Country Club, which is in South Euclid. The nonprofit supported by more than 100 dues-paying members is swept up in the million-dollar undertaking for multiple reasons. Sue Frankel, the club’s interim president, is doing double duty for the pastime at this point. She is putting her professional experience as an owner’s representative on building projects to work overseeing a novel job: converting 18,000 square feet of a flexible office-industrial building at 23103 Miles Ave. to a new facility that will provide the club with four sheets of ice for curling, up from its current three. It also will have expanded locker rooms and a lounge whose bar gives members a chance to discuss the outcome of their games — and provides extra cash for the enterprise. Henry Chisholm, a longtime club member, said the after-game camaraderie is a huge part of the sport, which involves sweeping ice to clear a way for a granite cylinder to make a goal. “We call the action sweeping the ice, which pre-melts the ice to help the rock

Sue Frankel, shown with her husband, Mitch (right), is overseeing the Mayfield Curling Club’s move to a new space in Warrensville Heights. | CONTRIBUTED PHOTO

“WE DON’T THINK MANY PEOPLE WOULD WANT TO CURL IN JULY WHEN IT’S 100 DEGREES OUTSIDE.” ——Sue Frankel, Mayfield Curling Club’s interim president

move,” Chisholm said. “After the game, you stack your broom to go get a drink.” Even though the new rink, like its predecessor, is indoors, the curling season typically runs from Nov. 1 to April 1. “We don’t think many people would want to curl in July when it’s 100 degrees outside,” Frankel said. And its association as a winter sport is a big part of its allure. Courtney Schmidt, a club member since 2003, remembers hearing from a

member during the season she and her husband learned to curl that “it makes the winters go by quickly. Nothing makes the winters go by quickly in Cleveland, I thought, but it did.” Now Schmidt and her husband, Daniel, are such devoted curlers that she is the chair of the U.S. Curling Association, which represents the sport nationally, and chairs the Mayfield club’s fundraising committee. The club so far has raised $600,000 in donations and hopes to come up with another $200,000 to be able to open in time for this year’s season. “We could get a loan,” Schmidt said, but the club hopes it does not have to do so. The COVID-19 pandemic, which shortened the club’s last season, has made fundraising more cumbersome.

But the greater challenge has been figuring out how to accommodate the socialization component so important to the club beyond simply playing wearing the pandemic-prevalent masks. “We’re figuring out how to live together and work together in this,” Schmidt said, “so we’ll learn how to curl together, too.” Some coronavirus accommodations came easily. The club will designate one door for entry and another for exiting, aside from the building code-mandated emergency exits. Members will have to sign in, and sanitizing stations were added to the plans, Frankel said. The club also plans to have groups begin playing from opposite sides to provide more social distancing. One of the club’s 14 committees is composed of members who work in health care, said Frankel, who created its COVID-19 preventive practices. Most of the time on the ice goes to intramural couples, men’s and women’s leagues. The club also operates what it calls a “juniors” program for prospective players from first grade to age 21 to learn and play the game. Putting in the additional ice sheet may mean a lot for the club’s future growth as well. Another rink means the club could accommodate as many as 60 more members than it has currently. Frankel said the additional rink time will allow the club to pursue providing

opportunities for people in wheelchairs or other disabilities to play. The new clubhouse will be ADA-compliant, she said, while the former club would have needed to add provisions to accommodate wheelchairs. Constructing the new rink is not simply adding an ice rink. Curling uses rinks that are not as smooth as typical ice rinks, which are more suited to the core of the game, which is fighting friction to score. “There is as much strategy in curling as there is in chess,” Chisholm said, due to knowing how to position the rocks to launch the game. “The single most important part of any curling club is the quality of the ice,” Chisholm said of the curling rink the club is installing. “It is hard to believe, but excellent ice provides excellent curling. That and the camaraderie of the membership makes for the best curling facility.” Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

Clarification ``A July 27, Page One article described Public Utilities Commission of Ohio chairman Sam Randazzo as a former FirstEnergy attorney. Randazzo was not an attorney on staff at FirstEnergy but represented its former subsidiary, FirstEnergy Solutions, as an outside lawyer, along with many other clients.

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it “heavily discourages” loans to small businesses. Michael Obi, who oversees the Urban League of Greater Cleveland’s entrepreneurship center, agrees with Farahi. “The banks, they knew the money was going to run out. So they scrambled to get to their larger customers. And most larger enterprises are white businesses,” Obi said. “The larger companies got that first chunk of money, and that’s why it ran out so fast. If banks got a fixed amount, we would have seen a different result.” The PPP’s initial pot of money ran out in just 13 days. The money for the second phase, which began April 27, has lasted since. An extension allows loan applications to be submitted through Aug. 8. As of July 24, there was $130 billion left. Concerns raised by advocates like CRL and the Urban League helped influence reforms that were made amid the second funding round that did enable greater minority participation, Obi said, such as greater minority outreach and the creation of borrower guidelines for funding sole proprietors. The SBA was slow to pro-

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Brokerages are positioning for listings as companies weigh slashing space BY STAN BULLARD

The owner of a 10-person business based in downtown Cleveland describes himself as “a guy that goes to the office. That’s the way business is done.” However, after finding during the state-ordered shutdown that the company’s staffers worked effectively from home, he decided to offer its gorgeous skyscraper suite for sublease. Primarily the move is to ensure employees remain safe during the pandemic, but he acknowledged potential savings are attractive. However, he declined to be identified because he felt readers would question the firm’s fiscal strength, which is quite positive, and other factors. Those concerns reflect the historic view that subleases expose a tinge of uncertainty about the tenant’s health. However, the company is on the cutting edge of an anticipated rise in sublease offerings. Subleases offer companies quick exits compared to waiting years, literally, for leases to expire. Although subleases in the Cleveland-Akron area are on the upswing, they pale compared with the buzz the concept is getting among the region’s office brokers. A Newmark Knight Frank study of new subleases in the region shows how rapidly the outlook is changing. NKF identified seven new subleases in the first quarter and 10 more added in the second quarter. All told, 17

new subleases have become available so far in this pandemic-roiled year. The amount of sublease space offered increased 65%, from 103,000 square feet in the first quarter to 170,000 in the second quarter. Small numerically, it is a dramatic difference in Northeast Ohio’s slow-shifting office market since 2000. Another way of looking at it is this: The amount of available space in three months grew as much as adding to the market a 1980s-era suburban multitenant office building that would take two years to construct. Kristy Hull, a Newmark Knight Frank managing director who works in the office market, said, “It’s a huge difference in one quarter. And with the way offices recently have been set up, with bench seating or hoteling, there could be a lot of change coming in the way offices are put together. With the increase in (COVID-19) cases here, people are nervous about coming back to the office downtown. Time will tell how this shakes out.” But the buzz about office subleasing is growing in intensity, if only among real estate brokerages positioning to get the listings as companies decide if they want to slash office space — and real estate costs — if working remotely proves durable. Some companies may wait to see how productivity trends pan out over some years, and others may move more quickly. Keeping staffers at home for now is potentially a compa-

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ny’s safest bet, even with new-breed COVID-19 “sign-in-and-take-yourtemperature” practices in place. David Browning, managing director of the CBRE brokerage’s Cleveland office, characterizes the rise in subleases so far as “a slight uptick,” but the brokerage expects it to become huge. “From our perspective, we are preparing and expect there to be more on the market,” he said.

4 | CRAIN’S CLEVELAND BUSINESS | AUGUST 3, 2020

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Daven Primm applied online for a $20,000 forgivable Paycheck Protection Program loan through U.S. Bank for his State Farm insurance agency in Warrensville Heights on the program’s first day, April 3. He didn’t receive funding until a month later, after the first pool of money ran dry, and from a different company. “I just felt like U.S. Bank left me with the feeling of not being important,” said Primm, who has both personal and business accounts there. “Of course, that wasn’t their intent. But I felt lost. And I didn’t like it.” Despite the positives the Small Business Administration program provided — almost $520 billion over 5 million loans supporting roughly 2 million U.S. jobs — Primm’s frustrating experience underscores some of its shortcomings in supporting the businesses it was crafted to protect, particularly the smallest enterprises that also compose the bulk of minority-owned firms. While Primm, who is Black, received a loan in the second PPP round through First Federal Lake-

wood, where he now intends to migrate his banking accounts, the worry among lending advocates is there may be a number of minority-owned businesses that weren’t as fortunate because of how the program was designed. And a lack of complete SBA data makes that impossible to verify. The Center for Responsible Lending (CRL), a nonprofit that advocates for fair and inclusive lending practices, predicted as much as 90% of minority-owned business could be shut out of the PPP due to such flaws during the first phase. One issue, said CRL senior policy counsel Yasmin Farahi, is the feebased system that provides lenders more income on larger loans, which max out at $10 million and are largely based on the size of payrolls. This incentivizes lenders to prioritize larger customers, she said, which is why the CRL advocates for a flat fee in lieu of one based on a percentage of the loan to eliminate the potential for favoritism. Lenders feel the current fees are appropriate with more earned on larger loans as they take more work to process. But Farahi said

7/31/2020 3:51:25 PM

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am come through for minorities? “THE BANKS, THEY KNEW THE MONEY WAS GOING TO RUN OUT. SO THEY SCRAMBLED TO GET TO THEIR LARGER CUSTOMERS. AND MOST LARGER ENTERPRISES ARE WHITE BUSINESSES.”

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vide guidance on loans for sole proprietors, which compose a large number of Black-owned businesses, leading to delays in their receiving loans. Because of improvements that have been made, it’s possible minority participation in the PPP was greater than the CRL originally feared. But there’s not actually a way to know for sure at this point because of the incomplete data collected by SBA. That lack of transparency, Farahi said, is a problem. “When this was rolled out, we were alarmed, worried about things that might make it hard for businesses of color to get their fair share. We are concerned about the potential to further widen an already gaping wealth gap,” she said. “Then the data comes out, and it’s incomplete. So we really can’t measure (racial equity). But this is taxpayer money, and we have every right to know where it’s going.”

Incomplete data Rob Scott, regional administrator for the SBA’s Great Lakes region, said he feels the PPP was successful in supporting minority-owned businesses. He noted how his agency conducted outreach at various ethnic chambers of commerce and in multiple languages promoting both the PPP and Economic Injury and Disaster Loans. “We really actively tried to get in front of anyone and everyone we could in (minority) communities,” he said. This is impossible to verify with incomplete data, however. Ethnicity was unanswered in 78% of PPP loans provided in Ohio. Gender was not listed in 68% of loans. Of those who did list ethnicity in Ohio (22% of all loans), 89% were white-owned businesses. And of those who listed gender (32%), 75%

were men. So 11% of PPP loans went to minority-owned and 25% went to women-owned businesses. Approximately 13% of small businesses in Ohio were minority-owned in 2015, and nearly 38% were women-owned in 2012, according to the most recent SBA data. Comparing those figures suggests minority- and women-owned businesses were decently represented in PPP loans in the state relative to their makeup of the business sector. But the limitations of SBA’s data mean those figures just don’t prove anything. There were 143,211 PPP loans made in Ohio as of July 24. And there were 965,576 small businesses in the state as of the early stages of the pandemic this year, according to the SBA. Therefore, less than 15% of all small businesses in the state have received PPP loans. The availability of data on details like race is important to understanding racial equity in a program like the PPP, Farahi said. Collecting that information should be required through legislation, she added, similar to how racial demographics are collected on neighborhoods via the Home Mortgage Disclosure Act.

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Office buildings that shape downtown Cleveland’s skyline may be in for a big change inside as office experts expect a surge of subleases as COVID-19 and the recession throw a curve into the gradually improving market. | STAN BULLARD/CRAIN’S CLEVELAND BUSINESS

Not only is the global brokerage pitching for potential sublease assignments, it is trying to identify what are called “shadow offices,” or spaces that companies lease but may be only partially using, if at all. It’s likely to be a significant number, Browning said, and valuable because it is a way for brokers to interest a company in making its space available if it has an interested prospect. As with much of the pandemic’s impact on business and the economy, the health crisis is likely to speed up trends already shaping the office market, which has been on a gradual decline as the idea of home offices has taken hold, but still reflected a small part of the workforce before March. The shedding of office space,

Browning said, may be offset by companies leasing more space per employee in order to accommodate social distancing practices. “It’s a very fluid situation,” he said. Subleases also have a special allure for prospective tenants. They allow them to quickly get into new offices, often saving big bucks on furniture and decorating expenses, or reach for landing a bargain space in a newer building than they might otherwise obtain, brokers say. Firms offering sublease space are just trying to cut their cash outlay. Dyann Davison, a senior vice president in Hanna Commercial’s Cleveland office unit, puts it simply: “Overnight, the stay-at-home order made Northeast Ohio a tenant’s market,”

she said, referring to a market where tenants can wrest better deals from landlords because the available office space overshadows demand. “This is going to force landlords to lower their rent rates and give additional concessions,” Davison said. While the Northeast Ohio office market had been substantially improving over the past several years, it’s lackluster compared with many around the country. As of June 30, the JLL Inc. brokerage estimates there is 18% vacancy in the region that’s directly available from building owners. Of that, downtown and Midtown Cleveland have a vacancy rate of 22%, and the suburbs as a whole have 15%. The largest factor shaping the market the past decade has been conversion of obsolete office buildings to apartments and hotels, slashing 5 million square feet from a downtown and Midtown market that has a total of 15 million square feet, JLL reports. The brokerage also estimates that leasing action in the region fell 48% as the pandemic took hold. With many companies allowing employees to continue to work remotely, Browning said CBRE puts downtown occupancy at below 15% and the suburbs, 30%, a figure others agree with. That shows the potential impact could be huge, but it’s just part of the picture. Damon Taseff, a principal at Allegro Real Estate Brokers and Advisors of Cleveland, calls what has happened “the big play in the office market the next few years. The question will be whether anyone is interested in taking on that office space.” Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

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AUGUST 3, 2020 | CRAIN’S CLEVELAND BUSINESS | 5

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PERSONAL VIEW

In Cuyahoga County, free speech comes to a crossroads

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

BBY JOHANNES WIDMALM-DELPHONSE

EDITORIAL

We’re back A

lot of Republican politicians — including, and maybe particularly, President Donald Trump — must be thinking to themselves these days, “We’ll always have Cleveland.” August is typically the most boring and least newsy month of the year, but it was to have gotten a jolt in 2020 from the political parties’ conventions. If you were in Cleveland during summer 2016, when the Republican National Convention came to town, you remember the energy the event created and the national attention it generated for the city and the organizers who handled it so deftly. But this year is like no other, and Cleveland’s big convention four years ago might mark the end of an era. The coronavirus has scrambled everything, including the plans of Democrats to gather in Milwaukee on Aug. 17-20, and Republicans to go to Charlotte (later switched to Jacksonville, a venue change that was scratched) on Aug. 24-27. There still will be something labeled a “convention” for both parties, but events will be virtual. The filled bars and restaurants, active street vendors, peaceful protests and more that marked the Cleveland convention will not exist this time CLEVELAND’S BIG around. CONVENTION FOUR It’s entirely possible this upsetting of political tradiYEARS AGO MIGHT MARK tion will serve the country THE END OF AN ERA. well. Perhaps streamlined, online-only convention events will put an emphasis on what the country needs — a focus on our significant economic, social and health problems — rather than on political figures. Companies have learned to get creative on Zoom and other platforms to change the way they work and become more efficient. Can political parties do the same? Cleveland, meanwhile, gets a place in the spotlight again when Case Western Reserve University and the Cleveland Clinic host the first debate between Trump and the Democrats’ presumed nominee, Joe Biden, on Sept. 29 on their Health Education Campus. Hosting duties were to have been handled by the University of Notre Dame, which bowed out. It’s unlikely there will be an audience at the debate, and

given the speed at which the virus situation is changing, Case and the Clinic will need to be nimble to handle health matters on top of the normal logistical concerns of a high-stakes political forum. One thing is certain: People will watch. Organizers expect at least 100 million to tune in for the event. And as in 2016, the eyes of the nation will be on Cleveland.

Play on? B

aseball’s back, and the Indians through last Thursday, July 30, were off to a 5-2 start, mostly due to a stellar rotation of young starting pitchers. After months of being inside, or at least limited in our movements, is this the one nice thing 2020 will allow us to have? Maybe not. Already, a big COVID-19 outbreak among players and staff of the Miami Marlins forced cancellations of some of their games, creating a cascade of teams affected by the fallout of positive tests. And on Friday morning, July 31, the St. Louis Cardinals had two of their players test positive, resulting in Major League Baseball postponing that afternoon’s game at the Milwaukee Brewers. The Cardinals had last played Wednesday, July 29, at the Minnesota Twins — the Indians’ weekend opponent and presumed strongest rival in the AL Central. Baseball’s curtailed season was supposed to feature each team playing 60 games, but that goal, just a week into the season, looks almost impossible to achieve. You don’t have to be deeply attached to “national pastime” nostalgia to appreciate the tiny bit of normalcy baseball brings back to cities, even with empty stadiums. Turning on the TV or the radio for the game is deeply pleasurable. It’s particularly so for Indians fans eager to see a World Series winner — and with a team that plausibly could do it. Perhaps baseball will be able to figure out a way to complete a safe season. We hope so. But so far, it’s another case of the realities of 2020 continuing to upend normal life. And reminding us, in the escapist realm of professional sports rather than in the more serious context of 150,000-plus lives lost, of the country’s failure to contain the virus.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

More and more people are sounding the alarm over our society becoming less tolerant of free thought and free speech. Take a few of the most recent examples: Law professor Jonathan Turley compared the now-trendy dismantling of statues to mob-inspired book burnings. A now-infamous Harper’s letter mourned the deteriorating respect for open debate in favor of “ideological conformity.” WidmalmAnd then came Bari Weiss’ resignation Delphonse is letter from The New York Times, which legal counsel described a “new McCarthyism” at the with Alliance newspaper, where only those who sub- Defending Freedom, which scribe to the “new orthodoxy” are safe. These concerns have triggered a fa- represents Kristi miliar retort: You have a right to free Stokes and her speech, not to be free from criticism. business, Touché. The government can’t stop you Covenant from speaking your mind, but it also Weddings. can’t protect you from the Twitter mob. But what happens when the government asserts that it can punish you for your speech? That is the reality in some places today. Government officials are playing favorites — protecting speakers with preferred views, while punishing those who promote different ones — hoping the Constitution doesn’t catch up to them. Consider Cuyahoga Coun- GOVERNMENT ty. In 2018, the county adopted an amendment to a law, OFFICIALS ARE PLAYING which officials have used to FAVORITES — present some local business owners with a terrible choice: PROTECTING SPEAKERS Change your speech, change WITH PREFERRED your profession or face government punishment. Which VIEWS, WHILE business owners face this di- PUNISHING THOSE WHO lemma? You guessed it — those who cannot in good PROMOTE DIFFERENT conscience promote the gov- ONES — HOPING THE ernment’s preferred message. Enter Kristi Stokes. She is a CONSTITUTION DOESN’T licensed minister who officiCATCH UP TO THEM. ates weddings and who also writes custom homilies, vows and prayers for her clients’ ceremonies. As a Christian, she can only celebrate and participate in weddings consistent with her belief that marriage is a sacred union between one man and one woman. This means Stokes cannot celebrate or participate in same-sex weddings, weddings honoring open marriages, or ceremonies honoring polygamy. Yet Cuyahoga County forbids Stokes from living out her faith this way. Local officials believe that if Stokes celebrates any weddings, she cannot decline to perform weddings that violate these religious beliefs. And if Stokes sticks to her convictions and declines to promote messages that go against them, she faces fines, fees and other penalties that could bankrupt her. This infringes on Stokes’ constitutional rights. Ministers should have the right to choose the weddings they officiate and the ceremonies they celebrate. And this right does not disappear just because Stokes runs a business. The First Amendment protects everyone’s freedom of mind, and the government cannot condition the ability to earn a living on promoting the state’s orthodoxy.

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.

See FREE SPEECH on Page 7

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

6 | CRAIN’S CLEVELAND BUSINESS | AUGUST 3, 2020

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OPINION

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BY ROB ROE

This far into the pandemic, many employees are now used to working from home. Technologies like Zoom, “Will the office become obsolete?” Microsoft Teams and Slack have imThis is the question on both occupiers’ and owners’ proved teams’ abilities to align and minds as the COVID-19 pandemic shifts the traditional connect from afar. way of working from 8-to-5 in the office to remote, flexiAnd or those who are slowly reble arrangements in the interest of health and safety. turning in phases or are on rotating In the short term, many companies may realize the schedules, the distancing of desks work-from-home setup isn’t so bad. Employees can be and increased sanitization among trusted to get their work done and may even see boosts Roe is the other safety measures will allow for of productivity from minimized distractions and no managing some immediate in-person conneccommute. director of the tivity. Long term, the impacts of the pandemic have pre- Cleveland office Still, a strict work-from-home forsented a unique, valuable opportunity for companies to of JLL. mat won’t be a permanent solution evaluate their office space and find new, efficient ways for the long haul. of working, making employees’ presence in the office A JLL survey of 3,000 office users sheds light on what more purposeful. employees are missing most about the office, and it Demand for different space types will vary boils down to face-to-face collaboration. Human SVNinterAd-Liverpool-8-3-Auto Repair.indd action and socializing with coworkers are missed beneCleveland has seen tremendous growth at its urban fits of the workplace, with 44% of respondents ranking it core. And while urbanization has been temporarily in- first. This is followed closely by accessibility to a profesterrupted, history points to cities remaining a key con- sional environment and collective face-to-face work. Split teams or rotational scheduling, and work-fromsideration for companies when configuring their real home setups will lessen the need for dedicated individestate strategies. To improve resiliency in the face of economic down- ual desks, putting more focus on spaces that are used for face-to-face collaboration and turn, companies may turn to a varimeetings. Think: pods, training and ety of solutions, including satellite LONG TERM, THE IMPACTS conference facilities, whiteboard offices or regional hubs, and flexible rooms and more that spur and enand remote work options, all to OF THE PANDEMIC HAVE hance dialogue and ideation among spread out employees while also PRESENTED A UNIQUE, teams. providing the productive workspacGetting back into the office is crues. Companies could potentially set VALUABLE OPPORTUNITY cial for companies’ ability to attract up satellite offices where a concenFOR COMPANIES TO and retain talent and maintain an trated number of employees reside, impactful culture that generates betreducing commute times for those EVALUATE THEIR OFFICE ter team building and happiness at outside the central business district. SPACE AND FIND NEW, work. Rather than a complete redesign, signs point to companies reworking EFFICIENT WAYS OF their spaces with an eye on the wanFocus on safety and ing of the pandemic once a safe vac- WORKING, MAKING experience cine is widely available. In the short EMPLOYEES’ PRESENCE term, most companies are putting Much of the conversation around real estate decisions on hold until IN THE OFFICE MORE workplace experience focused on the market sees more signs of stabil- PURPOSEFUL. nice-to-have amenities in the past ity. However, companies that can — tenant lounges, onsite cafes and make decisions now, whether acting through renewals, event space. And while many amenities will still have extensions or even new space will be at an economic ad- their place in office buildings, companies are placing vantage as landlords look for their next deal. greater emphasis on elements that restore confidence in returning to the office, and lead with an intentional design to facilitate collaboration and innovation. Traditional office setup will change Precautionary upgrades like efficient HVAC systems, While many offices have been shifting to dense, open-of- outdoor space and touchless technology are even highfice plans over the last decade, COVID-19 has disrupted this er on the list of priorities for companies following trend, with many companies looking toward solutions that COVID-19. Without feeling safe at work, there’s little positive or productive experience to be had. provide greater safety measures and de-densification.

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WHAT’S YOUR COMPANY’S NEXT MOVE?

FREE SPEECH

From Page 6

If the government can dictate what Stokes must celebrate, it can also dictate the speech of every hired writer or artist. Must a Muslim painter create murals promoting a Hindu temple just because he creates mosaics promoting a mosque? Must a graphic designer create pro-life flyers for a Christian organization just because she creates pamphlets for Planned Parenthood? If the First Amendment protects these creative professionals, it must protect Stokes, too. In all three cases, the government intrudes on a person’s freedom of mind, forcing them to promote ideas against their will. It’s sadly ironic that one of the things Stokes loves most about the Cleveland area is its diversity of people and viewpoints. She once ran a mobile ministry, preaching in the streets and meeting people from all different walks of life. It gave her an appreciation for the breadth

IT’S SADLY IRONIC THAT ONE OF THE THINGS STOKES LOVES MOST ABOUT THE CLEVELAND AREA IS ITS DIVERSITY OF PEOPLE AND VIEWPOINTS. of different cultures in the area. And even though many people from different faiths and backgrounds share Stokes’ beliefs, Cuyahoga County wants to throw them out of the marketplace. Rather than sit and wait under the threat of lawsuits, Stokes decided it was better to stand up for herself and others like her. So, through her attorneys with Alliance Defending Freedom, she filed a federal lawsuit challenging this unjust application of the county’s law and asking the court to vindicate her First Amendment rights. Stokes knows that freedom’s future depends on our commitment to preserving it today — for everyone. “I support everyone’s right to speak freely,” Stokes says, “I just want the same freedom for myself.”

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FIN

Se Hu Cle

PEOPLE TAKING CARE OF PEOPLE CRAIN’S EXCELLENCE IN HR 2020 As the historic COVID-19 pandemic broke out across the country, endangering people’s health and turning upside down the way many companies do business, human resources professionals stepped up to meet challenges unlike any they’ve seen before. HR professionals had to mobilize entire staffs to remote work, a feat of coordination that included shifting technology to homes and establishing vital links of communication. They set up COVID-19 protocols and had aid at the ready so workers could get the time and resources they needed should they fall ill. And they looked at more than just the numbers and processes, and instead saw the people, setting up counseling and wellness services that many employees needed to cope during an uncertain time. And that’s on top of the full course of employee-related efforts already in progress. This year’s Crain’s Excellence in HR Awards are designed to honor and highlight the full scope of work done by Northeast Ohio’s HR professionals, from companies large and small, and from all sectors, including the nonprofit realm. Honorees were selected by a panel of outside judges, all of whom have been honored by Crain’s in the past for their HR accomplishments: Trey Arney, Locus Fermentation Solutions; Kerry Bohac, The Centers for Families and Children; Amy McMullen, Lincoln Electric; and Thomas Hopkins, senior vice president, human resources, retired, Sherwin-Williams. Honorees will be recognized, and winners announced in all categories, during the virtual Excellence in HR event at 11 a.m. Wednesday, Aug. 19. Keynote presenter Peggy Zone Fisher, president and CEO at The Diversity Center of Northeast Ohio, will lead a discussion on inclusion and diversity in the workplace.

ADA YOKOTA

OVERALL EXCELLENCE, INDIVIDUAL NONPROFIT/GOVERNMENT FINALISTS PAGE 9

 Tamatha Belton, Senior Director of Human Resources, Cleveland Institute of Music  Monica K. Brown, Vice President, Human Resources and Administration, Cleveland Foundation  Jason Welsh, Director, Human Resources, Cleveland Clinic Edwin Shaw Rehabilitation Hospital

OVERALL EXCELLENCE, INDIVIDUAL SMALL PRIVATE WINNER PAGE 10

 Christine Peters, Director of People Operations, Willory

OVERALL EXCELLENCE, INDIVIDUAL MEDIUM-LARGE PRIVATE FINALISTS PAGE 10

 Lesa Evans, Chief Human Resources Officer, MAI Capital Management  Mary E. Miles, Chief People Officer, Brennan, Manna & Diamond  Mike Nikolaus, Chief Human Resources Officer, Cleveland Browns

OVERALL EXCELLENCE, TEAM PUBLIC WINNER PAGE 11

 TravelCenters of America

EMPLOYEE ADVOCACY, INDIVIDUAL WINNER PAGE 12

Lake eling &

h Assistance WStaff  Robert L. Smith, Director, Medical Programs, The MetroHealth System EMPLOYEE ADVOCACY, TEAM WINNER PAGE 12

 Earnest Machine Culture and Talent Development Department

OVERALL EXCELLENCE, TEAM NONPROFIT/GOVERNMENT FINALISTS PAGE 12

 Cuyahoga Metropolitan Housing Authority Human Resources Department  Federal Reserve Bank of Cleveland, People and Culture Department  The MetroHealth System

ACCIDENTAL HR, NONPROFIT WINNER PAGE 14

 Diana Rosa, Chief Quality Officer, Koinonia Homes Inc.

ACCIDENTAL HR, PRIVATE WINNER PAGE 14

 Evelyn Bruce, Chief Innovation Officer, Bonnie Speed Delivery

RISING STAR WINNER PAGE 15

 Hailee Houston, Business Partner, Human Resources, The MetroHealth System

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EXCELLENCE IN HR 2020 OVERALL EXCELLENCE, INDIVIDUAL, NONPROFIT/GOVERNMENT

FINALIST

Tamatha Belton

Monica K. Brown

Jason Welsh

Senior Director of Human Resources, Cleveland Institute of Music

Vice President, Human Resources and Administration, Cleveland Foundation

Director, Human Resources, Cleveland Clinic Edwin Shaw Rehabilitation Hospital

Over just two years, Tamatha Belton is credited with elevating the human resources department at the Cleveland Institute of Music. How? According to the nomination, she’s embraced the conservatory’s mission — “to empower the world’s most talented classical music students to fulfill their dreams and potential” — and ensured a safe and productive working environment for students, faculty and staff. Over that short time, much-needed changes took place in the school’s policies and procedures, moves she brought with “grace and sensitivity,” according to the nomination. “The role of the chief human resources officer in any organization is a complicated one, but so much more delicate and complicated is that role in the rarified air of one of America’s most celebrated BELTON HAS EMBRACED and legendary classical muTHE CONSERVATORY’S sic conservatories,” CIM MISSION — “TO president and CEO Paul W. EMPOWER THE Hogle said in the nominaWORLD’S MOST tion. TALENTED CLASSICAL He added, “Tammie MUSIC STUDENTS TO Belton joined the Cleveland FULFILL THEIR DREAMS Institute of Music team two AND POTENTIAL.” years ago and quickly established herself as a subject matter expert, executive confidant and wonderfully curious about her new field of practice.” Belton also serves as the Title IX coordinator, a critical and at times complicated role given the ever-changing legal landscape in higher education. Belton is also co-chair of the diversity, equity and inclusion task force, a group tasked with ensuring the culture at CIM is both welcoming and respectful. “Despite the current pandemic, CIM continues to thrive in large part because Tammie oversees our employees,” the nomination said. “As the institute navigates difficult decisions in the coming months, Tammie always places the health and well-being of our employees front and center.” —Timothy Magaw

In February, weeks before the first reports of COVID-19 cases surfaced in Ohio, Monica Brown was working on a plan. By March 2, she laid out a phased strategy for navigating the coronavirus pandemic for leaders at the Cleveland Foundation, where she’s served as vice president of human resources and administration since 2015. Brown sorted through the logistics of transitioning employees to remote work. She and her team orchestrated personal check-ins, virtual well-being sessions and financial wellness meetings, along with changes to benefits and leave options, the nomination said. “The pandemic response is just the latest example of the way Monica has built trust among staff by working with integrity, and in their best interest, for 13 years,” Michael Murphy, the foundation’s BROWN SORTED chief marketing officer, THROUGH THE wrote in nominating her for LOGISTICS OF this award. “She has been a TRANSITIONING voice of strength, realism, EMPLOYEES TO REMOTE empathy, positivity and WORK, ORCHESTRATING hope in a very difficult PERSONAL CHECK-INS, time.” VIRTUAL WELL-BEING Brown joined the foundaSESSIONS AND tion, a nonprofit organization with $2.6 billion in asFINANCIAL WELLNESS sets, as a human resources MEETINGS. manager in early 2007. Before that, the Kent State University graduate, who also holds a master’s degree in her field from Cleveland State University, worked in human resources for the Western Reserve Historical Society and played consulting roles with a range of nonprofit and arts-industry clients. In recent years, she’s had a hand in major initiatives, including the foundation’s planned move from downtown Cleveland to new headquarters in the city’s Midtown neighborhood. “Monica’s North Star has always been the well-being of her community — whether that’s our community of colleagues within the foundation or the broader community outside the walls of our office,” Murphy wrote in the nomination. “She has been a steadfast advocate for the foundation’s staff at every turn and in every major decision we’ve made.” — Michelle Jarboe

Health care facilities have enacted no-visitor policies during the pandemic to maintain the safety of patients and staff, but that also has created hiring challenges. Jason Welsh, director of HR at Cleveland Clinic’s Edwin Shaw Rehabilitation Hospital, took the discontinuation of in-person job recruiting events and interviews as an opportunity to create a virtual job fair for Edwin Shaw, which provides inpatient physical medicine and rehabilitation to people with disabling conditions including brain injury, stroke, orthopedic care and spinal cord injuries. With less than a week to make the transition, Welsh “personally contacted more than 20 candidates scheduled for in-person interviews and set up virtual job interviews with our leadership team,” according to the nomination. As a result, using only phone and video interviews, he “stayed ahead of our hospital’s recruitment needs WELSH FACILITATED THE and has successfully hired reCROSS-TRAINING OF spiratory therapists, nurses STAFF INTO SEVERAL and other key personnel DIFFERENT without any disruption to our DEPARTMENTS TO hospital’s operations.” ENSURE THEY RUN “From his communication SAFELY AND EFFECTIVELY to employees about being DURING THE PANDEMIC. designated as essential personnel/emergency staffing plans and the safe return to work following COVID self-quarantine, Jason was the model for excellence in employee experience and human resource engagement,” the nomination stated. Welsh also has facilitated the cross-training of staff into several different departments to ensure they run safely and effectively during the pandemic, and has coordinated with divisional leadership to employ furloughed staff from outpatient services. This coordination between outpatient and inpatient service lines helped move employee resources to areas most in need, the nomination stated. “Jason’s actions significantly improved the hospital’s ability to serve patients and the greater community during the COVID pandemic,” said David Stalnaker, director of rehabilitation at Edwin Shaw. Prior to the COVID-19 outbreak, Welsh regularly planned fundraising events to support local nonprofits, including Autism Society of Greater Akron, American Heart Association, American Cancer Society and the Brain Injury Foundation of Northeast Ohio. — Scott Suttell

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EXCELLENCE IN HR 2020 OVERALL EXCELLENCE, INDIVIDUAL, SMALL PRIVATE WINNER

Christine Peters Director of People Operations, Willory Christine Peters is one of those people you immediately trust, according to the nomination. For example, in February 2015, Peters introduced herself to Willory founder John Bernatovicz after a speech. Within six weeks, he created a role for her — one that has steadily grown over the past five years. In February 2019, she assumed the staffing and consulting firm’s HR leadership role. Today, she manages the firm’s people operations team, which includes office operations, finances and human resources. To put it simply, she is known as someone who wants to en-

Peters also has an integral role in the creation of a new prodsure things work better. According to the nomination, in just one year she uct for Willory dubbed “How’s My HR?” It’s an assessment deoverhauled Willory’s talent developveloped to help HR professionals improve all facets of their HR functions, according to the ment process — an endeavor that innomination. volved working with each manager to TO PUT IT SIMPLY, “No matter if it is internal or external work, create accountability and growth for SHE IS KNOWN AS Christine professionally represents Willory their employees, the nomination said. SOMEONE WHO while giving her all to ensure a high level of supPeters also transitioned the firm to a WANTS TO ENSURE single project-management platform, port and expertise in everything she does,” the THINGS WORK a move that “led to a gain in efficiency nomination said. “She is diligent in her preBETTER. by creating a single source of truth for informaparedness in her internal and client work.” —Timothy Magaw tion,” according to the nomination.

OVERALL EXCELLENCE, INDIVIDUAL, MEDIUM-LARGE PRIVATE FINALIST

FINALIST

Lesa Evans

Mary E. Miles

Mike Nikolaus

Chief Human Resources Officer, MAI Capital Management

Chief People Officer, Brennan, Manna & Diamond

Chief Human Resources Officer, Cleveland Browns

Lesa Evans brought 30 years of HR experience to MAI Capital Management when she joined the firm in June 2019 — but she only needed one to make an indelible impact at the business. Evans joined MAI from KeyBank at a pivotal time for the Cleveland-based RIA, which set the ambitious goal in 2017 to become one of the largest firms of its kind in the country. MAI has been on an acquisition streak since then, rolling up firms across the country in the wake of a partnership and investment from Wealth Partners AMID THE COVID-19 Capital Group of Florida. OUTBREAK, EVANS In 2019 alone, MAI comIMPLEMENTED A pleted five deals enabling regional expansions in SYSTEM THAT ALLOWS Ohio, Virginia and New 90% OF EMPLOYEES TO York. WORK REMOTELY AT Besides integrating ANY POINT WITH THE new employees at such a REMAINING 10% rapid clip and overseeing COMING INTO OFFICES eight regional offices, EvON A ROTATIONAL ans developed career BASIS. paths for each employee, setting goals and expectations relative to earnings, according to the nomination. She streamlined work flow processes in payroll and benefits, led the automation of benefits administration for the growing company and, sensing a need, formed MAI’s first Women’s Initiative group. Amid the COVID-19 outbreak, Evans implemented a system that allows 90% of employees to work remotely at any point with the remaining 10% coming into offices on a rotational basis. She even arranged for the delivery of care packages, complete with masks and sanitizer for those, working on-site. “Lesa has successfully navigated MAI through this pandemic while ensuring that MAI followed its strategic path, including acquiring a business in May and managing the recruiting of over 20 employees,” according to her nomination by MAI chief financial officer Jim Kacic. “Many employees have openly acknowledged Lesa’s tremendous leadership through this historical time in our lives.” — Jeremy Nobile

Mary E. Miles embraces the idea that communication can be one of the simplest, yet strongest, tools in performing at a high level. Miles is the Brennan, Manna & Diamond law firm’s first human resources executive. She not only used constant communication to steer the company’s 125 employees — across six locations in two states — during the pandemic, she also uses constant messaging and coaching to help instill the company culture into team members, according to her nomination. Described as a teacher and a mentor, Miles “has DESCRIBED AS A the unique ability to TEACHER AND A meet each employee MENTOR, MILES “HAS where they are and look for solutions that are THE UNIQUE ABILITY TO successful for the emMEET EACH EMPLOYEE ployee and the firm,” the WHERE THEY ARE AND nomination states. She LOOK FOR SOLUTIONS helps entry-level emTHAT ARE SUCCESSFUL ployees learn profesFOR THE EMPLOYEE sionalism and workplace AND THE FIRM.” skills, identifies employees in need and offers support, and has coordinated with workforce development companies for individuals with developmental disabilities. Miles, too, looks to develop individuals where she sees potential by promoting them to new positions. “Mary has a very unique combination of emotional intelligence, strategic thinking and sharp financial acuity,” BMD chief financial officer William Wolf said in the nomination. When shutdowns from the COVID-19 pandemic hit, the trust Miles had built among employees helped bring anxiety levels down. Add to that her constant communication: She called or visited each employee multiple times during the switch to remote work, identified IT needs, offered assistance to those with pandemic-induced anxiety, and successfully communicated that to meet BMD’s goal of avoiding layoffs, each team member had to be as productive as possible, according to Matthew Heinle, BMD president. “She wears her empathy on her sleeve for individuals while balancing the needs of the entire organization,” Heinle said in the nomination. — Sue Walton

Now in his 14th season with the Cleveland Browns, Mike Nikolaus is one of the team’s longest-tenured executives. Nikolaus has led the club’s HR efforts for eight years, and in 2018 was elevated to senior vice president. He also has overseen human resources for the Columbus Crew SC since the Haslam Sports Group started operating the Major League Soccer franchise in 2019. Nikolaus was a key resource during overhauls of the Browns’ coaching staff in back-to-back years, as well as the welcoming of new general manager Andrew NIKOLAUS WAS A KEY Berry. The Browns also RESOURCE DURING added a pair of seOVERHAULS OF THE nior-level executives on the business side in that BROWNS’ COACHING span. STAFF IN BACK-TOThroughout each proBACK YEARS, AS WELL cess, Nikolaus made AS THE WELCOMING OF himself available for oneNEW GENERAL on-one discussions to MANAGER ANDREW ensure that each employBERRY. ee “had all resources available to them,” the nomination said. Peter John-Baptiste, the Browns’ senior vice president of communications, said Nikolaus “has consistently proven to be an exceptional leader and resource for our entire staff, both as the head of all of our human resources operations and as a key member of our executive team.” The veteran executive, according to the nomination, “is one of the most respected people throughout the building.” Prior to joining the Browns, Nikolaus, a Baldwin Wallace University graduate, spent four years as a manager of human resources with Grant Thornton LLP. He’s also a former audit operations manager for Arthur Anderson. — Kevin Kleps

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EXCELLENCE IN HR 2020 OVERALL EXCELLENCE, TEAM, PUBLIC WINNER

TravelCenters of America Inc. Karen Kaminski and the HR team she leads at TravelCenters of America Inc. went into overdrive when the coronavirus pandemic hit. Westlake-based TravelCenters, the nation’s largest publicly traded full-service travel center network, didn’t have a culture of remote work among headquarters employees. When Gov. Mike DeWine announced the closure of the state’s schools, Kaminski’s team “immediately jumped into action, thinking of all the parents who did not have child care options,” according to the nomination. “By that same evening, corporate employees received a memo from Karen: Those who could successfully do their jobs from home were permitted to do so. Many items had to come together for this quickly, from IT coordination, to creating rules for the new office normal.” But working from home wasn’t an option for more than 20,000 employees at the company’s 265 truck stop locations. Working with senior executives, the HR team “designed an Employee Incentive Plan for those who continued working in

WHEN GOV. MIKE DEWINE ANNOUNCED THE CLOSURE OF THE STATE’S SCHOOLS, KAREN KAMINSKI’S TEAM “IMMEDIATELY JUMPED INTO ACTION, THINKING OF ALL THE PARENTS WHO DID NOT HAVE CHILD CARE OPTIONS.”

the field,” the nomination stated. The plan included guaranteed bonuses for all location managers, even if they did not hit their first-quarter performance targets; a one-time cash bonus for all location workers; free meals for everyone who worked a shift of six hours or more; and up to 80 hours of paid sick time for anyone diagnosed with COVID-19. As a result of the employee incentive plan, 17,349 employees received a lump-sum bonus in April. Simultaneously, Kaminski and the HR team were in the midst of implementing a companywide reorganization plan, announced May 1. As a result of the pandemic’s disruptions to full-service restaurants, the team had to handle the furloughs of nearly 3,000 employees. “Karen’s calm demeanor and professionalism carried us through some of the toughest times this company has ever had,” CEO Jon Pertchick said in the nomination. “She balances employee advocacy, business operations and change management with perfection and attention to every detail.” — Scott Suttell

JOIN US VIRTUALLY AS WE CELEBRATE THE 2020 EXCELLENCE IN HR FINALISTS AND WINNERS IN THIS TRIBUTE TO NORTHEAST OHIO’S LEADING HUMAN RESOURCES PROFESSIONALS.

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EXCELLENCE IN HR 2020 EMPLOYEE ADVOCACY, INDIVIDUAL

EMPLOYEE ADVOCACY, TEAM

WINNER

Robert L. Smith

Earnest Machine, Culture and Talent Development

Director, Medical Staff Assistance Programs, The MetroHealth System As the medical staff assistance programs director for MetroHealth, Dr. Robert L. Smith is in charge of caring for the caregivers. His job, to safeguard the health of MetroHealth’s doctors and make sure they are not bringing patients’ trauma home, was critical with the onset of the COVID-19 outbreak, according to the nomination. Smith began his work at MetroHealth 40 years ago during the height of the AIDS crisis, so this was not his first pandemic, the nomination said. “When this hit, I knew what everyone was afraid of,” Smith said, according to the nomination. “I knew what the concerns were, knew how to support the staff, knew what to do. … Let’s follow the science. And let’s get to work.”

“Dr. Bob,” as colleagues call Smith, immediately went into action, meeting one-on-one with more than 170 providers, residents and fellows in need of counseling and providing 30-minute sessions to help them deal with COVID-related emotions of sadness, grief, frustration and social isolation. His message to his staff was simple. “Yes, it's serious. But if we do the right things, we’ll be OK,” Smith said, according to the nomination. He helped craft a care plan for nearly 8,000 employees that included procuring a medita-

tion and wellness phone app and providing an online “daily dose” of coping advice. All of these crucial coronavirus-focused efforts were on top of Smith’s day-to-day work, which includes going to each department to investigate the stressors and causes of provider burnout. “He has an extraordinary ability to connect, deeply and authentically, with everyone he meets,” the nomination said. “Dr. Bob is equal parts supportive, calming, emboldening and inspiring.” — Kim Palmer

SMITH’S MESSAGE TO HIS STAFF WAS SIMPLE: “YES, IT’S SERIOUS. BUT IF WE DO THE RIGHT THINGS, WE’LL BE OK.”

For Earnest Machine in Rocky River, a strong company culture is not built with pool tables or happy hours, it’s understanding that successfully retaining employees is, in part, rooted in helping them beyond the workplace, according to the nomination. In 2019, for example, the global distributor and manufacturer launched a wellness initiative, one that goes well beyond fitness and includes financial and personal wellness. According to the nomination, Elise Bastian, the HR team’s lead, teamed up with Earnest chief financial officer Brian Mamich to offer confidential, one-on-one meetings with anyone in the company to discuss anything related to finances, including navigating student

loan 401( tian ploy othe sear D ed, d

A C T E R B

OVERALL EXCELLENCE, TEAM, NONPROFIT/GOVERNMENT FINALIST

FIN

Cuyahoga Metropolitan Housing Authority, Human Resources Department

Federal Reserve Bank of Cleveland, People and Culture Department

During these uncertain times, every organization’s human resources are under great stress. The ones that rise above are those that provide what employees desire most — compassion, responsiveness and information. Under the leadership of Betsy McCafferty, that’s just what the Cuyahoga Metropolitan Housing Authority’s did, according to CEO Jeffery K. Patterson. “Whether it was ensuring that staff had the proper PPE necessary to ensure their safety, making sure staff was aware of their rights, responsibilities and benefits during these uncertain times, or coordinating small group sessions with staff focusing on how to cope with the effects of the pandemic both personally or professionally, our HR team has fully engaged our staff in a compassionate, informative THE CUYAHOGA METROPOLITAN and responsive manner which has resulted in our HOUSING AUTHORITY HR TEAM team successfully being able to provide critical services to our residents and clients during this pandemFULLY ENGAGED THE STAFF IN A ic,” Patterson wrote in the nomination. COMPASSIONATE, INFORMATIVE Beyond the pandemic, over the past year, the HR AND RESPONSIVE MANNER team focused on several efforts relating to training and WHICH RESULTED IN THE TEAM development throughout the organization. Some of SUCCESSFULLY BEING ABLE TO the initiatives included a six-month new employee onPROVIDE CRITICAL SERVICES TO boarding training program and a new manager trainCMHA RESIDENTS AND CLIENTS ing series. The team also delivered an interactive trainDURING THIS PANDEMIC. ing series about managing stress, dealing with challenging interpersonal relationships and conflict de-escalation, among other topics. The training has helped boost employee skills, resulting in a 6.42% employee promotion rate, the nomination said, and contributed to the reduction of employee turnover by about 4% in 2019 compared with 2018. “In my 25 years in the human resources field, this is one of the most engaging, knowledgeable and compassionate teams I have worked with,” Patterson wrote. — Timothy Magaw

RON ANTONELLI/BLOOMBERG

FINALIST

During the past year, the human resources department at the Federal Reserve Bank of Cleveland has undergone a small but meaningful change: It’s no longer known as the HR department. It’s the People and Culture Department. It’s a recognition that “each individual is an important thread in the fabric of the bank’s culture,” according to the nomination. Most importantly, the team followed the name change with action. When the COVID-19 pandemic hit, the team — under the leadership of Margie Wright-McGowan — took time to understand the needs of all employees and lead with emotional intelligence to provide the help they needed, according to the nomination. According to the nomination, all employees were given access to additional health care support, crisis care, online fitness classes, extensions on various benefits, telehealth services and free COVID-19 testing. Also, essential employees were provided with free meals and free parking, as well as premium pay as a recognition of the sacrifices they were making. Other employees were provided a much more flexible work environment. All the while, the bank didn’t lay off or furlough a single employee due to the pandemic. ALL EMPLOYEES WERE GIVEN ACCESS TO “Through their coordinated efforts, the PeoADDITIONAL HEALTH CARE SUPPORT, ple and Culture team demonstrated great agility and resilience in providing additional beneCRISIS CARE, ONLINE FITNESS CLASSES, fits for these unique circumstances, broadening EXTENSIONS ON VARIOUS BENEFITS, their touchpoints with employees throughout TELEHEALTH SERVICES AND FREE the bank, introducing new learning opportuniCOVID-19 TESTING. ALSO, ESSENTIAL ties, adjusting to virtual recruiting and onEMPLOYEES WERE PROVIDED WITH FREE boarding, and sustaining a positive focus on MEALS AND FREE PARKING, AS WELL AS what matters most — our people,” wrote GregPREMIUM PAY AS A RECOGNITION OF ory L. Stefani, the bank’s chief operating officer, THE SACRIFICES THEY WERE MAKING. in the nomination. — Timothy Magaw

12 | CRAIN’S CLEVELAND BUSINESS | August 3, 2020

P012_P013_CL_20200803.indd 12

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loans, refinancing mortgages, 401(k)s, taxes and budgeting. Bastian also has counseled several employees’ spouses and significant others on resume building and job searches. Demand for this help, as expected, deepened during the COVID-19

A STRONG COMPANY CULTURE COMES FROM UNDERSTANDING THAT SUCCESSFULLY RETAINING EMPLOYEES IS, IN PART, ROOTED IN HELPING THEM BEYOND THE WORKPLACE.

pandemic. For example, when an employee approached about adding a spouse who had been laid off to Earnest’s health insurance, Bastian was eager to help in any way she could, the nomination said. “The work our human resources department has done created an environment where our employees feel cared for, because they are,” Earnest Machine CEO Kirk Zehnder wrote in the nomination. “I want my employees to do their best work, and their best work comes when they know they have a place to turn to when they have tough questions regarding finances, or their spouse or significant other has experienced a hardship with their own job. We want to help and we will continue to help long after this crisis is behind us.” — Timothy Magaw

FINALIST

The MetroHealth System

Congratulations to MAI Capital’s

Lesa Evans

and all of Crain’s Excellence in HR finalists

MAI Capital Management, LLC 1360 East 9th Street, Suite 1100, Cleveland, OH 44114 216.920.4800 | www.mai.capital

MEET YOUR TARGET AUDIENCE WITHOUT EVER LEAVING THE OFFICE. FOR MORE INFORMATION: scott.carlson@crain.com

When the COVID-19 storm arrived, the MetroHealth System’s human resources team stepped up to face it, according to nominator Akram Boutros, MetroHealth president and CEO. In addition to confronting the hurdles that other HR teams faced with stay-at-home orders and the shift to remote work, “the team had to compassionately support thousands of clinical staff members who were placing themselves in potential peril by providing compassionate care on the front lines of the crisis,” the nomination said. The team seamlessly moved the entire 70-person HR staff and over 1,000 of the system’s administrative and support staff to remote work, and temporarily redeployed employees affected by location closures and the suspension of nonurgent procedures, the nomination said. THE TEAM SEAMLESSLY MOVED But the team also stepped up its service for the overall well-being of THE ENTIRE 70-PERSON HR its workers and their families. It STAFF AND OVER 1,000 OF THE created the “All In” care plan, which SYSTEM’S ADMINISTRATIVE supported front-line workers with AND SUPPORT STAFF TO things like food delivery, free onREMOTE WORK, AND site massages and live music. The TEMPORARILY REDEPLOYED team expanded its employee assisEMPLOYEES AFFECTED BY tance program to offer telehealth LOCATION CLOSURES AND THE counseling for workers dealing SUSPENSION OF NONURGENT with the emotional toll of the panPROCEDURES. demic and quickly created reliable daycare for essential employees. During all of this, the team helped roll out a wage increase for more than 4,000 staff members when other hospitals and health systems were furloughing, laying off or cutting the pay of workers. When the coronavirus pandemic is behind us, people no doubt will remember the work of the heroic front-line workers. “Our hope is that they don’t leave out the people, like the MetroHealth Human Resources team, who rose to meet the moment and provide the heroes with the support they needed to serve our community,” Boutros said in the nomination. — Sue Walton

A business is only as good as its people. Mary Miles joined the BMD Business Family as its Chief People Officer in 2018 and has shown the firm how to elevate a good culture to greatness. Congratulations, Mary, on your selection as an Excellence in HR finalist.

AUGUST 3, 2020 | CRAIN’S CLEVELAND BUSINESS | 13

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EXCELLENCE IN HR 2020 ACCIDENTAL HUMAN RESOURCES LEADER, NONPROFIT

ACCIDENTAL HUMAN RESOURCES LEADER, PRIVATE

RIS

WINNER

WIN

Diana Rosa

Evelyn Bruce

Chief Quality Officer, Koinonia Homes Inc.

Chief Innovation Officer, Bonnie Speed Delivery

Diana Rosa joined Koinonia Homes Inc. in December of 2018 as the first chief quality officer for the nonprofit. In less than two years, she has already made an impact on the organization’s culture and values and worked to improve employee recruitment and retention. Koinonia in Independence provides residential, adult day and career services for more than 600 people with intellectual and developmental disabilities in the region. Last year, Rosa spearheaded an internal study focused on the turnover and retention of direct support professionals. Recruitment and retention of these professionals is an ongoing challenge for Koinonia that has only been heightened in a time of low unemployment. A survey found

Evelyn Bruce has seemingly done it all in her decade at Bonnie Speed, a Cleveland-based logistics company. When the need arose for a leader in HR, Bruce quickly went to work to provide consistency, collaboration and efficiency in this critical support area, according to the nomination. For one, she quickly created metrics and reporting that tied into attendance, professionalism and service, the nomination said. The metrics were used to reward employees for their performance. The move has proven beneficial, according to the nomination, as turnover decreased 11%. In addition, she strengthened the company’s training and development process, including building out an online training portfolio that can be customized for each department, the nomination said. She also created the company’s first “employee-driven innovation process,” a move that has resulted in team members seeing “a clear path where their voices will be heard, ideas considered and (that) they will be actively involved and engaged in the process.” Bruce has taken on other roles beyond HR at Bonnie Speed, though it remains under her purview because of her level of success and

Hu Th

IN LESS THAN TWO YEARS, ROSA HAS ALREADY MADE AN IMPACT ON THE ORGANIZATION’S CULTURE AND VALUES AND WORKED TO IMPROVE EMPLOYEE RECRUITMENT AND RETENTION.

that respondents had a positive view of the job, but that factors like low wages, isolation and burnout led to turnover. The project produced an action plan designed to better engage these employees through measures like stay bonuses and increased communication and training. In 2019, Rosa also led an initiative to better define the organization’s culture and philosophy, launching a program to help employees learn about the approach known as “The Koinonia Way,” as well as one to encourage staff members to share feedback about their work experience. “Through her use and understanding of data, combined with her strategic vision, Diana has played a key role in Koinonia’s journey to be an employer of choice so that we are equipped to advance our organizational mission in current times,” the nomination said. Outside of work, Rosa volunteers as a mentor with College Now and leads financial management workshops. — Rachel Abbey McCafferty

achievement, the nomination said. In particular, she has taken on a critical leadership role during the pandemic to adjust the company’s protocols to ensure safety and flexibility for its staff. “Evelyn has always had a heart for people,” Bonnie Speed CEO Kenya Guess wrote in the nomination. “She is an extremely thoughtful, humble, graceful and positive individual. Her oversight of innovation for the company is a layer of glue that helps to promote growth and structure to the organization.” — Timothy Magaw

BRUCE HAS TAKEN ON OTHER ROLES BEYOND HR AT BONNIE SPEED, THOUGH IT REMAINS UNDER HER PURVIEW BECAUSE OF HER LEVEL OF SUCCESS AND ACHIEVEMENT. IN PARTICULAR, SHE HAS TAKEN ON A CRITICAL LEADERSHIP ROLE DURING THE PANDEMIC TO ADJUST THE COMPANY’S PROTOCOLS TO ENSURE SAFETY AND FLEXIBILITY FOR ITS STAFF.

14 | CRAIN’S CLEVELAND BUSINESS | August 3, 2020

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CMHA PROUDLY SUPPORTS

RISING STAR

CRAIN’S CLEVELAND BUSINESS

WINNER

VIRTUAL EXCELLENCE IN HR EVENT

Hailee Houston Human Resources Business Partner, The MetroHealth System After Hailee Houston helped a MetroHealth employee facing a cancer diagnosis understand her benefits, the two became quick friends, chatting on the phone often to go over paperwork or just to talk about life. When they eventually met in person, the two embraced and cried. The employee, now in remission, said she didn’t know what she’d have done without Houston. This is why Houston goes above and beyond. Less than two years into her full-time HR career, she has made her mark at MetroHealth as a creative, engaged and tireless teammate, according to her nomination. In her time with the A SELF-PROCLAIMED system, she led a group that created “PLANT LADY” WHO an HR-request ticketing system, LOVES COOKING helped craft and communicate an updated dress policy and, most recently, FROM SCRATCH, led a monumental effort to track how HOUSTON HAS the pandemic affected staffing by usVOLUNTEERED FOR ing the system’s timekeeper data to VOICES FOR reassign employees in jeopardy of losCHILDREN, THE OPEN ing hours — an effort that helped conTABLE INITIATIVE tain costs and avoid layoffs or furAND METROHEALTH loughs, according to the nomination. EFFORTS, INCLUDING A self-proclaimed “plant lady” who DELIVERING FOOD TO loves cooking from scratch, Houston FRONT-LINE has volunteered for Voices for Children, the Open Table initiative and WORKERS OFF THE MetroHealth efforts, including delivCLOCK. ering food to front-line workers off the clock, according to the nomination. Houston “exemplifies the mission of the hospital,” Donna Ortiz, manager of the HR Business Partner Network at MetroHealth, said in the nomination. “In addition to her outstanding work as an HR Business Partner, Hailee has volunteered her time to work at the monthly bank food distribution on campus,” Ortiz said. “Her quick wit, attention to detail and desire to help others have endeared her to colleagues throughout the system.” — Lydia Coutré

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YOUR STORY. YOUR STAGE.

SPONSOR AN EVENT TODAY • Learn More: scott.carlson@crain.com

The MetroHealth System congratulates our outstanding Human Resources staff winners and finalists: Robert L. Smith, Ph.D. - Employee Advocacy Hailee Houston - Rising Star The MetroHealth HR Team - Overall Excellence Your commitment to excellence makes a difference every day for our employees! We salute all of the nominees and winners in the 2020 Crain’s Excellence in HR awards.

SPONSORED CONTENT

August 3, 2020

SPONSORED CONTENT plays in the organization,” she said. “HR leaders who are not already trusted advisers to their executive team have the opportunity to step into that role now.” These times call for HR leaders to provide people data and recommend courses of action that will position the organization to survive and thrive. The “lead from the front” strategy includes creating new communication, accountability and support systems to ensure connectivity, productivity and retention, she said. To that extent, Keefe added, some of the key initiatives and priorities HR leaders will face during the second half of the year and beyond include: • Making sure you have the right people in the right seats. There is more talent available today versus earlier this year. • Creating safe physical workspaces • Developing a recovery plan • Ensuring compliance with everchanging guidelines and regulations • Building a strategy for virtual talent acquisition and onboarding • Elevating employee engagement • Developing leaders to effectively manage remote workforces • Focusing and educating on financial, mental and physical wellness • Building organizational resilience • Deciding if pay adjustments will be made for 2021 • Ensuring HR has lifelines to partners who can answer their questions, provide them with data, and fulfill any short- (or long-) term needs they have.

WORKPLACE PROTECTION GUIDELINES The coronavirus pandemic has raised numerous questions relating to workplace health, safety and best practices. The spread of COVID-19, however, is an omnipresent concern for both employees and employers. The U.S. Equal Employment Opportunity Commission addressed workplace protections and rules during the previous H1N1 outbreak. This year, the EEOC updated its Preparedness in the Workplace and the Americans with Disabilities Act with information that can help guide employers in developing strategies on workplace protections amid the age of COVID-19. The guidelines include information on: • Disability-related exams and medical inquiries

P016_P017_CL_20200803.indd 17

• Confidentiality of medical information • Hiring, onboarding and making reasonable accommodations • Workplace harassment • Furloughs and layoffs • Returning to work • Caregivers/family responsibilities/ pregnancy

EMPLOYEE ENGAGEMENT IN THE AGE OF THE CORONAVIRUS

HELPING NORTHEAST OHIO GET BACK TO WORK SAFELY

Human Resources Today, an HR content aggregator, has identified some key trends that can help employees feel fulfilled in their roles as they work during a global pandemic. 1. Flexibility is the new norm. The pandemic has accentuated the rising trend of work-life integration and flexibility. Many industries do not require the physical presence of an employee from 9-5, five days a week. Employers should expect that a blend of a virtual and physical work environment is not a temporary circumstance but the new norm. 2. Re-create the employee experience. Perks that encourage employee well-being, such as gym memberships or group-based entertainment activities, may not be applicable in the age of a pandemic. HR leaders should consider how to redefine the well-being experience during these unique times.

COVID-19 poses a unique problem for companies that are hiring or bringing employees back to work. Traditional onboarding, where new hires sit with HR, isn’t appropriate with social distancing guidelines. We can help with HR software that sends new hire paperwork electronically, so employees can get started with their onboarding from the comfort of their own home.

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3. Connect with compassion and encourage feedback. High-performing leaders must demonstrate compassion and empathy. This is an opportunity to develop meaningful relationships with your workforce. Fostering an interactive relationship that encourages feedback is especially useful as a company or organization grows and develops. 4. Prioritize talent development. Staying flexible and nimble will be key to long-term employee engagement. Consider reconfiguring your company’s organizational chart, from a traditional hierarchy to a more customized structure that meets workplace needs.

SOURCES: Society for Human Resource Management, Human Resources Today, U.S. Bureau of Labor Statistics, U.S. Equal Employment Opportunity Commission

7/30/2020 1:39:13 PM

CRAIN'S LIST | PUBLIC COMPANIES, OHIO Ranked by 2019 revenue RANK

COMPANY

2019 REVENUE (MILLIONS) % CHG (2018)

PRIMARY INDUSTRY

TOP LOCAL EXECUTIVE

RANK

COMPANY

2019 REVENUE (MILLIONS) % CHG (2018)

PRIMARY INDUSTRY

TOP LOCAL EXECUTIVE

CARDINAL HEALTH INC./CAH 7000 Cardinal Place, Dublin 614-757-5000/cardinalhealth.com

$145,534 6.4%

Health care

Mike Kaufmann, CEO

RPM INTERNATIONAL INC./RPM 2628 Pearl Road, Medina 330-273-5090/rpminc.com

$5,565 4.6%

Manufacturing

Frank Sullivan, chairman, president, CEO

MARATHON PETROLEUM CORP./MPC 539 S. Main St., Findlay 419-422-2121/marathonpetroleum.com

$124,112 28.3%

Mining and natural resources

Michael Hennigan, president, CEO

BIG LOTS INC./BIG 4900 E. Dublin-Granville Road, Columbus 614-278-6800/biglots.com

$5,238 -0.5%

Retail

Bruce Thorn, president, CEO

THE KROGER CO./KR 1014 Vine St., Cincinnati 513-762-4000/thekrogerco.com

$121,852 -1.2%

Retail

W. Rodney McMullen, chairman, CEO

TRANSDIGM GROUP INC./TDG 1301 E. 9th St., Suite 3000, Cleveland 216-706-2960/transdigm.com

$5,223 37.1%

Manufacturing

Kevin Stein, president, CEO

PROCTER & GAMBLE CO./PG One Procter & Gamble Plaza, Cincinnati 513-983-1100/pg.com

$67,684 1.3%

Consumer products and services

David Taylor, chairman, president, CEO

WELLTOWER INC./WELL 4500 Dorr St., Toledo 419-247-2800/welltower.com

$5,121 9.2%

Real estate

Thomas DeRosa, chairman, CEO

PROGRESSIVE CORP./PGR 6300 Wilson Mills Road, Mayfield Village 440-461-5000/progressive.com

$38,998 22%

Insurance

S. Tricia Griffith, president, CEO

GREIF INC./GEF 425 Winter Road, Delaware 740-549-6000/greif.com

$4,595 18.6%

Manufacturing

Peter Watson, president, CEO

EATON/ETN 1000 Eaton Blvd., Beachwood 440-523-5000/eaton.com

$21,390 -1%

Manufacturing

Craig Arnold, chairman, CEO

VERTIV HOLDINGS CO./VRT 1050 Dearborn Drive, Columbus 614-888-0246/vertiv.com

$4,431 3.4%

Tech and telecom

Rob Johnson, CEO

SHERWIN-WILLIAMS CO./SHW 101 W. Prospect Ave., Cleveland 216-566-2000/sherwin.com

$17,901 2.1%

Manufacturing

John Morikis, chairman, CEO

DIEBOLD NIXDORF INC./DBD 5995 Mayfair Road, North Canton 330-490-4000/dieboldnixdorf.com

$4,409 -3.7%

Manufacturing

Gerrard Schmid, president, CEO

AMERICAN ELECTRIC POWER CO./AEP 1 Riverside Plaza, Columbus 614-716-1000/aep.com

$15,561 -3.9%

Utilities

Nicholas Akins, chairman, president, CEO

HUNTINGTON BANCSHARES/HBAN 41 S. High St., Columbus 614-480-2265/huntington.com

$4,390 2.7%

Financial services

Stephen Steinour, chairman, president, CEO

GOODYEAR TIRE & RUBBER CO./GT 200 Innovation Way, Akron 330-796-2121/goodyear.com

$14,745 -4.7%

Manufacturing

Richard Kramer, chairman, president, CEO

THE TIMKEN CO./TKR 4500 Mount Pleasant St., North Canton 234-262-3000/timken.com

$3,790 5.8%

Manufacturing

Richard Kyle, president, CEO

Manufacturing

Thomas Williams, chairman, CEO

2019 REVENUE $3,760 WORTHINGTON INDUSTRIES/WOR (MILLIONS) 5% 200 Old Wilson Bridge Road, Columbus % CHG (2018) PRIMARY INDUSTRY 614-438-3210/worthingtonindustries.com

Manufacturing

John McConnell, chairman, CEO;

Retail

Andrew Meslow, CEO

$3,760 $3,590 ABERCROMBIE & FITCH CO./ANF Manufacturing 5% Fitch Path, New Albany 2.8% 6301 614-283-6500/abercrombie.com

chairman,CEO CEO; RetailJohn McConnell, Fran Horowitz, Andy Rose, president 1

Utilities

Charles Jones, CEO

Mining and natural resources

Michael Hennigan, chairman, president, CEO

Manufacturing

James Kamsickas, chairman, CEO

Wholesale and distribution

Patrick Bowe, president, CEO

Insurance

S. Craig Lindner; Carl Lindner, co-CEOs

Insurance

Steven Johnston, president, CEO

$3,590 INDUSTRIAL Retail Fran Horowitz, $3,473 Wholesale and Neil CEO Schrimsher, APPLIED 2.8% 13% distribution president, CEO TECHNOLOGIES INC./AIT 1 Applied Plaza, Cleveland 216-426-4000/applied.com $3,473 Wholesale and distribution Neil Schrimsher, president, CEO 13% $3,292 Manufacturing Alfred Rankin, HYSTER-YALE MATERIALS 3.5% chairman, president, HANDLING INC./HY CEO 5875 Landerbrook Drive, Mayfield Hts. $3,292 Manufacturing Alfred Rankin, chairman, president, 440-449-9600/hyster-yale.com 3.5% CEO $3,178 Retail Roger Rawlins, CEO DESIGNER BRANDS INC./DBI 13.3% 810 DSW Drive, Columbus $3,178 Retail Roger Rawlins, CEO 614-237-7100/designerbrands.com 13.3% $3,156 Consumer Jim Hagedorn, SCOTTS MIRACLE-GRO CO./SMG 18.5% products and chairman, CEO 14111 Scottslawn Road, Marysville $3,156 Consumer products and services Jim Hagedorn, chairman, CEO 937-644-0011/scottsmiraclegro.com 18.5% services $3,009 Manufacturing Olivier Filliol, CEO METTLER-TOLEDO 2.5% INTERNATIONAL INC./MTD $3,009 Manufacturing Olivier Filliol, CEO 1900 Polaris Parkway, Columbus 2.5% 614-438-4511/mt.com

Financial services

Greg Carmichael, chairman, president, CEO

Food and beverage

Mark Smucker, president, CEO

Manufacturing

Brian Chambers, chairman, CEO

RANK

11 12 13 14 15 16 17 18 19 20 21 22 23

$14,320 PARKER HANNIFIN CORP./PH COMPANYBlvd., Mayfield Heights 0.1% 6035 Parkland 216-896-3000/parker.com WORTHINGTON INDUSTRIES/WOR 200 Old Wilson Bridge Road, Columbus $13,237 L BRANDS INC./LB 614-438-3210/worthingtonindustries.com 4.8% Three Limited Parkway, Columbus 614-415-7000/lb.com ABERCROMBIE & FITCH CO./ANF 6301 Fitch Path, New Albany $10,844 FIRSTENERGY CORP./FE 614-283-6500/abercrombie.com -2% 76 S. Main St., Akron 800-736-3402/firstenergycorp.com APPLIED INDUSTRIAL TECHNOLOGIES INC./AIT 1 Applied Plaza, Cleveland $8,745 MPLX LP/MPLX 216-426-4000/applied.com 29.3% 200 E. Hardin St., Findlay 419-421-2414/mplx.com HYSTER-YALE MATERIALS HANDLING INC./HY 5875 Landerbrook Drive, Suite 300, Mayfield Heights $8,620 DANA INC./DAN 440-449-9600/hyster-yale.com 5.9% 3939 Technology Drive, Maumee 419-887-3000/dana.com DESIGNER BRANDS INC./DBI 810 DSW Drive, Columbus $8,170 THE ANDERSONS INC./ANDE 614-237-7100/designerbrands.com 168.3% 480 W. Dussel Drive, Maumee 419-893-5050/andersonsinc.com SCOTTS MIRACLE-GRO CO./SMG 14111FINANCIAL Scottslawn Road, Marysville $8,017 AMERICAN 15.5% GROUP937-644-0011/scottsmiraclegro.com INC./AFG 301 E. Fourth St., Cincinnati METTLER-TOLEDO INTERNATIONAL INC./MTD 513-579-2121/afginc.com 1900 Polaris Parkway, Columbus 614-438-4511/mt.com $7,924 CINCINNATI FINANCIAL CORP./CINF 46.6% 6200 S. Gilmore Road, Fairfield LINCOLN ELECTRIC HOLDINGS/LECO 513-870-2000/cinfin.com 22801 St. Clair Ave., Euclid 216-481-8100/lincolnelectric.com $7,893 FIFTH THIRD BANCORP/FITB 16.6% 38 Fountain Square Plaza, Cincinnati 2 AVIENT CORP./AVNT 800-972-3030/53.com 33587 Walker Road, Avon Lake 440-930-1000/avient.com $7,838 THE J.M. SMUCKER CO./SJM 6.5% One Strawberry Lane, Orrville STERIS/STE 330-682-3000/jmsmucker.com 5960 Heisley Road, Mentor $7,160 OWENS440-354-2600/steris.com CORNING/OC 1.5% One Owens Corning Parkway, Toledo COOPER TIRE & RUBBER CO./CTB 419-248-8000/owenscorning.com 701 Lima Ave., Findlay $6,892 CINTAS419-423-1321/coopertire.com CORP./CTAS 6.4% 6800 Cintas Blvd., Cincinnati M/I HOMES INC./MHO 513-459-1200/cintas.com 4132 Worth Ave., Suite 500, Columbus 614-418-8000/mihomes.com $6,691 O-I GLASS INC./OI -2.7% One Michael Owens Way, Perrysburg VERSO CORP./VRS 567-336-5000/o-i.com 8540 Gander Creek Drive, Miamisburg 877-855-7243/versoco.com $6,117 TRAVELCENTERS OF -1.8% AMERICA INC./TA NORDSON 24601 Center RidgeCORP./NDSN Road, Westlake 28601 Clemens Road, Westlake 440-808-9100/ta-petro.com 440-892-1580/nordson.com $5,923 KEYCORP/KEY EXPRESS -4.1% 127 Public Square,INC./EXPR Cleveland 1 Express Drive, Columbus 216-689-6300/key.com 614-474-4001/express.com $5,581 ALLIANCE DATA CLEVELAND-CLIFFS INC./CLF -1.5% SYSTEMS CORP./ADS 200 Public Suite 3300, Cleveland 3075 Loyalty Circle,Square, Columbus 216-694-5700/clevelandcliffs.com 614-729-4000/alliancedata.com

37 38 39 40 41 42 43 44 45 46 47

Business services

Scott Farmer, chairman, CEO

Manufacturing

Andres Lopez, CEO

Retail

24 49 25 50

Jonathan Pertchik, CEO

Financial services

Christopher Gorman, chairman, president, CEO

Financial services

Ralph Andretta, president, CEO

38 39 40 41

TOP LOCAL EXECUTIVE Andy Rose, president 1

LINCOLN ELECTRIC $3,003 HOLDINGS INC./LECO -0.8%St. Clair Ave., Euclid 22801 216-481-8100/lincolnelectric.com

$3,003 Manufacturing -0.8%

Manufacturing Christopher Mapes, Christopherchairman, Mapes, chairman, president, president, CEO CEO

$2,863 CORP./AVNT 2 AVIENT -0.6%Walker Road, Avon Lake 33587 440-930-1000/avient.com

Manufacturing $2,863 -0.6%

Robert Patterson, Manufacturing Robert chairman, Patterson, president, CEO chairman, president, CEO

$2,782 STERIS/STE 6.2% 5960 Heisley Road, Mentor 440-354-2600/steris.com

Manufacturing $2,782 6.2%

Walter Rosebrough, president, Manufacturing Walter Rosebrough, CEO president, CEO

$2,753 TIRE & RUBBER CO./CTB Manufacturing $2,753 COOPER -2% -2% 701 Lima Ave., Findlay 419-423-1321/coopertire.com

$2,500 Construction, architecture Robert Schottenstein, chairman, $2,500 Construction, Robert Schottenstein, M/I HOMES INC./MHO 9.4% president, CEO 9.4% architecture, chairman, president, 4132 Worth Ave., Suite 500, Columbusand engineering engineering CEO 614-418-8000/mihomes.com

$2,444CORP./VRS Manufacturing $2,444 VERSO -8.9% -8.9% 8540 Gander Creek Drive, Miamisburg 877-855-7243/versoco.com

Adam St. John, president, Manufacturing Adam St. John,CEO president, CEO

$2,194 CORP./NDSN NORDSON -2.7%Clemens Road, Westlake 28601 440-892-1580/nordson.com

Manufacturing $2,194 -2.7%

Sundaram Nagarajan, president, Manufacturing Sundaram Nagarajan, CEO president, CEO

$2,116 INC./EXPR EXPRESS -2% 1 Express Drive, Columbus 614-474-4001/express.com

Retail

CEOBaxter, CEO RetailTimothy Baxter, Timothy

$1,990 Mining and natural $1,990 CLEVELAND-CLIFFS INC./CLF -14.7% resources-14.7% 200 Public Square, Suite 3300, Cleveland 216-694-5700/clevelandcliffs.com

$2,116 -2%

Brad Hughes, president, Manufacturing Brad Hughes,CEO president, CEO

C.and LourencoC.Goncalves, Mining Lourenco chairman, president, CEO natural Goncalves, chairman, resources president, CEO

Researched by Chuck Soder: csoder@crain.com | Numerical data provided by S&P Global Market Intelligence, Marketintelligence.spglobal.com. Send feedbackCEO to Chuck Soder: csoder@crain.com. 1. Roseexecutive is scheduled to become CEO NOTES: 1. Rose is scheduled to become on Sept. 1, 2020; McConnell will NOTES: then become chairman. 2. PolyOne on Sept. 1, 2020; McConnell will then become executive chairman. 2. PolyOne changed its name to Avient on July 1, 2020, when itchanged closed the deal totobuy the color masterbatch businesses Clariant Chemicals India businesses Ltd. its name Avient on July 1, 2020, when it closedofthe deal toand buyClariant the color masterbatch of Clariant and Clariant Chemicals India Ltd.

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18 | CRAINâ€™S CLEVELAND BUSINESS | August 3, 2020

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ANALYSIS

Reranked by revenue, Ohio Public Companies list changes dramatically BY CHUCK SODER

This year’s edition of our Ohio Public Companies list looks nothing like the one published last year. The rankings have been completely rearranged for one reason: This year, we ranked the list by revenue instead of market capitalization in an effort to help distinguish this statewide list from our Northeast Ohio Public Companies list, which is still ranked by market cap. The results show just how big of a difference there can be between company size and company value. Case in point: The company in the No. 19 spot on last year’s list, Cardinal Health of Columbus, pole vaulted into the No. 1 spot this year. The Columbus-based health care services company dislodged longtime chart-topper Procter & Gamble, which would still be in the No. 1 spot — by a long shot — if we still ranked the list by market cap. As of April 30, the Cincinnati-based consumer products giant was more than six times more valuable than the second most valuable company on the list, Progressive Corp. of Mayfield Village, according to market cap figures available in the full

Excel version of the Ohio Public Companies list. Now Procter & Gamble is No. 4 and Progressive is No. 5. They also were surpassed by Marathon Petroleum Corp. of Findlay, which jumped from No. 5 last year to No. 2 this year, and The Kroger Co. of Cincinnati, which leapt from No. 17 to No. 3. The changes were so large that many companies that didn’t even make the list last year did so easily this year. Among them are The Andersons Inc. of Maumee, No. 15; Westlake-based TravelCenters of America, No. 23; and Big Lots Inc. of Columbus, No. 27. Another big difference between this year’s list and last year’s: The full Excel version now contains a hundred companies, up from 56 last year. It also contains names and titles for more than 850 executives as well as revenue and net income figures for both 2018 and 2019. Combined revenue for the 100 companies on the full list grew by 7.7% in 2019. But as we stated, company size doesn’t always equate to value: Net income for the group fell by 8.9%. Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

HALL OF FAME

From Page 3

Phase III, conservatively pegged at $300 million, would include an experiential component with virtual and augmented reality, a luxury hotel with retail space, housing and an assisted living center for former NFL players, coaches and officials. Ideally, that work would begin within a year or two of the completion of Phase II and be completed a couple years later, Crawford said. “I would anticipate more phases after that, and frankly, coming back and re-engineering or reconceptualizing some things,” said Crawford, who is the combined company’s chairman of the board. “You want to keep everything fresh.” That, like Hall of Fame Village’s early pronouncements, might sound like too much, but Crawford believes a pieceby-piece approach, with each phase open to adjustments based on current trends and technological advancements, will mitigate some of the risks. “You never build a church for Easter Sunday,” he said. “You always build a master plan to add new things, exciting new elements. Cedar Point does this really well.”

COVID-19 complications Another example Crawford cited was Disney, whose 500-acre California resort, he pointed out, is 100 acres fewer than the potential for the sprawling Hall of Fame campus in Canton. All that hope could be overshadowed by the pandemic, which has brought the tourism industry to a near-standstill and

ANNOUNCING

THE NEW AND IMPROVED

forced Hall of Fame Village to push back the launch of its public offering to early July. As of Thursday, July 30, the stock price had dropped in half, to a closing price of $5.30 per share, since its debut. The Hall of Fame’s annual enshrinement ceremony, along with the NFL’s preseason opener between the Dallas Cowboys and Pittsburgh Steelers, were moved to 2021. “COVID is complicating everything,” Lichter said. Crawford, though, is thankful that the Village hadn’t begun to build any of the Phase II elements before the pandemic hit, “because I think we would have been closing things as quickly as we would have been opening them.” Instead, the approach is more cautious. The next step is the completion of a $21 million renovation of the former McKinley Grand Hotel in Canton, which Hall of Fame Village purchased for $3.8 million last year and is being rebranded as a Doubletree by Hilton. That should be completed by early October, Crawford said, and plans call for an onsite hotel, a Hilton Tapestry, to follow. The goal is to capitalize on the popularity of the Pro Football Hall of Fame, mix in a youth sports business that is already profitable and eventually incorporate gaming, fantasy sports, esports and plenty of other attractions. “There was no real length of stay here,” Crawford said. “We have a vision of taking an opportunity to create a destination for people to have fun in, stay in and eat in.”

Finding a way

al Chamber of Commerce, said it was expected that a project of the Village’s magnitude would experience some “starts and stops and hurdles along the way.” Crawford’s appointment and the Gordon Pointe merger, however, have made Saunier more hopeful than ever that the Village’s grand plans will come to fruition. “Those are indicators that the project is alive and well and moving forward,” the veteran of 40 years with the Canton chamber said. So if the assumption is that the development will come to fruition and the U.S. will return to some semblance of normal in 2021, the next hurdle is the Village becoming profitable. The new company’s investor presentation estimates that Phase II can bring in $147 million in revenues and produce earnings before interest, taxes, depreciation and amortization of $47 million by 2025. A quarter of the revenue is projected to come from the waterpark, and sponsorships, events at the stadium and the hotels are estimated to account for another 50%. Should Ohio legalize sports betting, Crawford sees huge potential in that space, and would welcome the Village becoming “a test site” for the state. It’s that type of thinking that has Lichter, who is the largest owner of the combined entity, confident that the Village will follow through on its many promises. “Maybe this was personal arrogance, but I always thought we’d find a way to get it done,” the IRG chairman said.

Dennis Saunier, the longtime president and CEO of the Canton Region-

Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

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AKRON MANUFACTURING

Mars Electric outlasts competitor and expands in Akron Electrical supply distributor bounces back after COVID-19 downturn BBY DAN SHINGLER

Mayfield-based Mars Electric is expanding in Akron and has plans to grow further in Northeast Ohio now that it’s survived a COVID-19 downturn and apparently outlasted its major competitor, Cleveland’s Leff Electric. It wasn’t a health scare that slowed Mars down this spring, it was a construction slump. The electrical supply distributor, like other companies, says it saw its business take a hit in the early days of the crisis, with sales down as much as 30%. But when its biggest competitor shut down in April, Mars picked up market share and resumed its growth plans, starting with an expansion in Akron, said Mars vice president of sales Michael Mammone. In June, Mars opened a 12,000-square-foot branch at 190 Opportunity Parkway in the southwest part of downtown Akron. “We relocated our facility that we had in Tallmadge, which was around 8,500 square feet. So, it’s a larger facility with a more central location,” Mammone said. The location puts Mars not only in a prime location with easy access, but also near a lot of new construction going on in and around downtown Akron, ranging from new residential developments to health care facility expansions and other commercial and industrial projects. That

HB 6

From Page 1

It also gives some support to a coal-fired plant in Ohio and another in Indiana that were part of FirstEnergy Solutions before it separated from FirstEnergy Corp. via bankruptcy in February of this year, but far and away most of the subsidies go to the nuclear plants. FirstEnergy Solutions, FirstEnergy’s then-subsidiary, came out of that bankruptcy as the standalone independent company Energy Harbor, with ownership of the affected plants. At the time, their subsides seemed secure. Less than two months later, Energy Harbor made headlines when it increased its own authorization to buy back shares from investors by $300 million — from $500 million to $800 million. That had eyes rolling in the shaking heads of longtime opponents of HB 6 and others, who saw it as evidence the company never really needed the $150 million in subsidies, even though FirstEnergy Solutions had said it would have to shutter the nuclear plants without the bill’s extra support, paid for by electricity users statewide. But with disgraced former GOP House Speaker Larry Householder indicted in what federal prosecutors say was a $60 million scam in which he and others solicited bribes from FirstEnergy to pass HB 6, the move to increase the buyback authorization appears to have become unpalatable to a broad swathe of Columbus lawmakers, including Republicans who are now supporting the repeal of HB 6. One is Rep. Mark Romanchuk, R-Ontario, who sent an email to his House colleagues on July 27 with the

new construction represents Mars’ biggest end market, Mammone said. “We’re very close to downtown Akron, so we can better serve some of the facilities down there,” he said. “Our largest market is the electrical contractors; they make up the largest portion of our business. But we also sell directly to people like hospitals and facility managers.” The new facility is both a showroom for the products Mars sells and a full-service supply shop for contractors. It offers “express will call,” Mammone said, so contractors can quickly make and pick up orders. “It’s similar to what you’d see at a Panera or a Chipotle. You can call your order in ahead of time and when you come in your order is ready and waiting on some shelving. You can just grab it and go,” Mammone said. It’s also, for the time being at least, still offering curbside service for customers who don’t want to come in at all during the COVID-19 pandemic. “Some customers have adopted that and still want to continue it, so we’re still offering that curbside service even though we now allow customers in our buildings,” Mammone said. It wasn’t long ago though, that Mars was more concerned with business generally than with expanding. The early months of the crisis were tough, as some building projects slowed and new construction projects were put header “To all policy makers who supported or voted for HB 6.” Romanchuk declined to comment, but Crain’s obtained a copy of his email, which went to all House members. In it, he makes two arguments in support of a repeal. Romanchuk wrote to his colleagues: “First is the announcement on May 12, 2020, that Energy Harbor would be using excess cash to buy back an additional $300 million worth of stock. In simple terms, it would appear that if they did need a bailout, then the one provided by Ohio was at least $300 million more than they required. This was a direct payment back to the corporate owners of Energy Harbor stock. This is something that opponents (of HB 6) testified might occur. Again, I am not saying they didn’t need the money. But it appears they didn’t need as much as they said they did — if they needed any at all.” Romanchuk then referenced an investigation of FirstEnergy by the Milwaukee law firm Ademi & O’Reilly, which specializes in securities law and said the company may have “issued false and misleading statements regarding its business practices” with regard to its support of Householder. “Specifically, FirstEnergy allegedly spent approximately $2.9 million on Larry Householder’s 2017 campaign.

This photo illustration shows Mars Electric’s new Akron branch on Opportunity Parkway on the July 4 holiday. | PHOTO ILLUSTRATION BY NICO CREATIVE

on hold, Mammone said. The company, which has sales of more than $100 million annually, saw its business plummet early in the year. Then, Leff Electric suddenly ceased operations in April. Leff’s website since has been taken down, but The Electrical Distributor Magazine reported it had posted a notice that it was no longer paying vendors or taking new orders. “The COVID-19 crisis and resulting restrictions placed on businesses in Ohio caused Leff Electric to suspend Householder became Ohio House Speaker in 2019 and allegedly returned the favor by enacting laws to support FirstEnergy’s nuclear plants as well as a pair of coal plants. In total, political donations and bribes by

its regular business operations on April 10, 2020,” the magazine reported, citing Leff’s website. “At this time, Leff has suspended payments to vendors and is not placing new orders from suppliers or receiving any new deliveries of products,” it continued. While bad for Leff, that was apparently a boon for Mars. “Before they closed, we were seeing sales dropping between 20% and 30%. It was scary, but that has since stabilized,” Mammone said. Now, after several years of record

parency with regard to the plants’ and the company’s financial position. Many legislators were bitter that they could not see such information when HB 6 was passed, and are only more so now. “We don’t even know what the numbers were. We kept saying, ‘Show us “WE DON’T EVEN KNOW WHAT THE your bottom line, NUMBERS WERE. WE KEPT SAYING, show us the num’ And we just ‘SHOW US YOUR BOTTOM LINE, SHOW US bers. weren’t getting that,” THE NUMBERS.’ AND WE JUST WEREN’T said Sen. Nickie Antonio, D-Lakewood. GETTING THAT.” That’s still large——Sen. Nickie Antonio, D-Lakewood. ly the case. Lawmakers don’t even FirstEnergy and other parties involved know if the company ever did buy may have totaled as much as $60 mil- back $800 million worth of its stock, lion,” the firm said shortly after and Energy Harbor isn’t saying. “We have nothing further to disHouseholder was arrested on July 22. “In short, it is being argued that close at this time,” was the only statethey provided false or misleading in- ment Energy Harbor would release formation that could impact stock when asked about the matter. prices or people’s decision to invest Meanwhile, support to repeal HB 6 in the company. If this is being pur- seems to be growing, and many predict sued, should we not also be looking it’s headed to the bin. What’s being arinto that data? Isn’t HB 6 just another gued now, legislators say, is whether to do a clean repeal that wipes out the “IN SIMPLE TERMS, IT WOULD APPEAR bill in its entirety, or THAT IF (ENERGY HARBOR) DID NEED A one that would effectively just elimiBAILOUT, THEN THE ONE PROVIDED BY nate the bill’s taintOHIO WAS AT LEAST $300 MILLION MORE ed subsidies. That’s a big stakes THAN THEY REQUIRED.” game, because a ——Rep. Mark Romanchuk, R-Ontario clean and total repeal would replace form of ‘investment’ in that compa- the nuclear and coal subsidies with the state’s former subsidies for renewable ny?” Romanchuk wrote. Others are also latching onto the rea- energies, which HB 6 removed. Memsoning that Energy Harbor doesn’t need bers of the two parties are already putsubsidies for its plants if it’s planning a ting out competing and conflicting inbuyback — and they’re also resurrect- formation about which, if either, sort of ing complaints about the lack of trans- subsidies are needed, and which costs

growth, Mars is happy just to be on track to keep up with the sales level of 2019 instead of seeing the big decrease it was expecting just a few moths back. “We’re projecting to be flat to last year, which is phenomenal,” Mammone said. Mars actually had its new Akron branch, which opened in an existing building, ready to go in May but delayed opening until mid-June due to the pandemic, Mammone said. Now, the company, which has 12 branches and 165 employees in Northeast Ohio, is planning to resume its former expansion plans. “We have a goal of three additional locations in the next five years … all within Northeast Ohio.” Mammone said. Electricians in the region are busy, whether it’s for new construction or service and repair at both residential and commercial facilities, said Pat Graham, owner and president of GCS Electric in Sheffield and Elyria. “Everyone is very busy. We do primarily service and repairs, and we’re booked two weeks out sometimes just to get repairs in. … People are being forced to wait weeks to get lights on just because everyone is so busy,” Graham said. Graham said he’s had some difficulty getting some parts — certain breaker switches have been hard to come by, he said — but the situation has been improving. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler ratepayers more. Given the chance, many Democrats also want to change laws pertaining to things like wind-energy setback requirements, which they and renewable energy advocates have said killed many wind projects that would otherwise be built in Ohio. “Our future is in renewable energy,” Antonio said. “There could be a plan to evolve those jobs from nuclear today to renewable energy tomorrow. Why aren’t we addressing that in this bill as well?” Some Republicans are pushing for a partial repeal, while Democrats want more. “Democrats, and I can certainly speak for myself, want a clean-slate repeal now,” Weinstein said. That would be followed by the chance to rewrite the state’s energy policies later with a replacement bill after the 2020 election, he and Antonio said. The partisan strategies should surprise no one, since Republicans hold a strong majority in the statehouse now and Democrats are hoping to whittle away at it in November — possibly with added momentum from the Householder scandal. Expect to see that fight over the coming weeks, legislators said. Antonio, who is a co-sponsor of legislation along with, at last count, 33 other state legislators, said she’s backing an effort toward a clean repeal that she thinks will get passed. “This is the bipartisan bill,” Antonio said. “I think we have an equal number of Democrats and Republicans co-sponsoring this bill, and that’s very unusual.” Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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CRAIN’S CLEVELAND BUSINESS

ABATEMENT

From Page 1

“This will be the last house for us, our dream house,” said Tom Cook, who is 64. As Cleveland contemplates changes to its long-running abatement program, recipients like the Cooks and Calhouns see room for refinement. Keep offering abatement, they said, but adjust the terms with an eye on fairness and affordability. That’s what the city set out to do last year, when it hired a group of consultants to conduct research and interviews on the topic. But a report released late last month makes clear that Cleveland’s housing market needs more help — not less. The consultants did propose modest adjustments to the program, such as a cap on abatement for new single-family homes. They tempered those recommendations with caution, though, indicating that the city isn’t as far along in its recovery as it might seem based on cranes in the sky and construction crews on the ground in a handful of neighborhoods.

Sensitive subject Abatement is a touchy topic in a city with an abundance of aging houses, deep income disparities and a for-sale market that’s still feeling the effects of a housing bust that wiped out wealth and stymied investment more than 10 years ago. Cleveland residents aren’t necessarily opposed to incentives for new housing, but they want to see more help for longtime homeowners struggling to maintain older homes and grappling with escalating tax bills that, in some cases, cost more than their mortgages. Builders, meanwhile, say abatement is critical for landing buyers and competing against suburbs that increasingly offer their own tax breaks for residential projects. Cleveland provides 15 years of abatement on new real estate value created by ground-up construction and certain renovation projects. The city has offered some form of abatement since the 1980s. Apartment developers and lenders are blunt in their views. “Not one unit would have been built in Cleveland in the last 30 years without abatement, and not one unit would be built in the next 30 years without abatement,” said Scott Wolstein, whose Flats East Bank project includes an apartment building on the Cuyahoga River. It’s too early to say whether, or when, the city will follow up on recommendations from the abatement report, produced by the Philadelphia-based Reinvestment Fund and a series of other organizations. The abatement program isn’t up for renewal until mid-2022. Cleveland City Council, which held its first hearing on the report last week, could take up some matters quickly, such as the possibility of capping abatement for new houses. It seems likely that other modifications won’t happen until the city wraps up a broader study to produce a 10-year housing and investment strategy — a process that’s just getting started. Community development leaders describe abatement as one piece of a large, complex puzzle — a tool that has helped prop up parts of the housing market but that can’t solve bigger real estate problems, from rising property taxes to demand for more

Anita and Tom Cook sit on the front steps of their new home in Cleveland’s Duck Island neighborhood, just outside of downtown. They previously lived in Tremont, in a newly constructed home that also carried tax abatement. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

affordable, safe housing. “Our hope that we could use tax abatement to encourage equitable development still stands,” Tania Menesse, the city’s community development director, told council members last week. “But the data really showed us that we’re going to need to bring other tools to bear.”

Debate over abatement cap Lawrence Apple’s Elmhurst Homes is a small shop, a Beachwood-based company that might build a few houses each year on Cleveland’s West Side. His typical, three-bedroom home sells for $350,000 to $420,000. Some buyers are new to Cleveland. Others are Northeast Ohio natives returning to the region or suburbanites migrating into the city. All of them receive tax abatement. The number of abatements in Cleveland — and the share of them going to single-family homes — has plummeted in the 26 years since the Calhouns arrived in Hough. The recent study shows that new abatements plunged after 2006, as the housing market bubble popped. The program, used for both subsidized and market-rate housing, doesn’t touch as much of the city as it once did. Abatements have become more concentrated in a few neighborhoods, including Ohio City, Tremont, Detroit Shoreway and University Circle, where builders can attract buyers and make the numbers work. Homebuilders say it’s increasingly difficult to construct a quality house in Cleveland for less than $300,000 — the figure that researchers suggested as the cutoff point for abatement. It can cost 25% more to build in the city than in the suburbs due to Cleveland’s antiquated zoning code, old infrastructure, permitting complications and often-lengthy approval process, builders said. Oddly shaped lots and theft from construction sites also are challenges. Without abatement, Apple said, “it’s not workable. And it’s not worth it.” The program actually adds to the upfront costs of homes, since the city’s green-building requirements go beyond the state building code. Cleveland tied those mandates to abatement in 2010, and the green

specifications constantly evolve based on national ratings systems. Builders say meeting those hurdles isn’t easy, but they result in better houses and lower energy bills for residents. Matt Berges, who built the Cooks’ new home on Duck Island, said the caliber of projects built with abatement has improved dramatically in the last decade. Bo Knez, president of Painesville-based Knez Homes, believes that limiting the amount of abatement available for single-family construction will hamper sales. His company, with projects scattered from West Park to downtown to Fairfax and Glenville on the East Side, just raised its base price for a new house in the city to $289,000. “I don’t know why you would even propose a cap,” he said. “Why would you limit higher earners or make yourself less attractive to people that may want a more expensive home?” Proponents of a cap argue that abatement isn’t a deciding factor for purchasers of more expensive properties. “Nobody building homes for $400,000 needs to be receiving the full tax abatement for that,” said Tom McNair, executive director of the Ohio City Inc. nonprofit group. He and other neighborhood leaders hope that such a ceiling might encourage builders to construct more moderately priced homes in parts of Cleveland where demand is steady and real estate values are rising — areas where abatement has become an object of scorn for some longtime homeowners and, in turn, a hot-button political issue. Tom Cook favors an abatement cap, which he described as a “luxury tax,” of sorts. He and his wife paid nearly $400,000 for a newly built house in Tremont in 2006, when they moved into the city from Solon with the younger of their two sons. On Duck Island, their new home certainly cost at least that much to construct. “I didn’t move here to turn Duck Island into another Solon,” said Cook, who retired from the insurance business two years ago. “I like the diversity of housing. I like the diversity of people that live here,” he said. “And I think that we have to come up with some solutions for affordable housing for folks, or for people to stay in their homes, if they

want to.”

‘Does not work’ without tax break Real estate developers and homebuilders don’t disagree with that sentiment. But they say the abatement program is being unfairly targeted because of problems that point to a need for broader government intervention in the market. Limiting property tax increases on longtime homeowners, for example, would require state action. Older homes in many Cleveland neighborhoods are cheap and could be a solution to housing affordability challenges, builders said, but there needs to be a bigger pool of money for renovations and home repairs — a topic that’s sure to be featured in the city’s long-term housing and investment study, which is likely to be completed next spring. “I have a strong and favorable opinion on the benefits being realized from the tax abatement program,” Berges, the Duck Island builder, wrote in an email. “But I would give it up in a second if I thought it would solve our equity and affordability problems (which it would not, of course).” In the apartment market, which has accounted for a growing share of

S E P T E M B E R 3 - 9 , 2 018

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abatements over the last decade, the tax break is essential, developers say. Even for high-end new construction, rents in Cleveland haven’t climbed enough to cover the cost of building and operating projects. “Without tax abatement, it does not work at all — any of our projects,” said Doug Price, CEO of the K&D Group, which has converted six historic downtown buildings into apartments. He and other landlords worry about what will happen as abatements approved 10 to 14 years ago begin to roll off. Some major projects also carry 30 years of tax increment financing, which means they’ll still get a property tax break — but a much smaller one — once the 15year abatement window ends. Smaller projects, including low-income apartments built or renovated with abatement, don’t have that partial cushion. Some of them already are underwater. The recent study doesn’t suggest many changes for apartment projects. The consultants recommended that the city seek additional documentation that abatement is a makeor-break incentive for large deals. And they raised the prospect of community benefit agreements in hot neighborhoods, where developers of market-rate projects that receive abatement might need to contribute to a fund that, perhaps, could support home repair or investments in green space. At this point, those possibilities are ideas, a framework that’s far from fleshed out. In Hough, Ronald Calhoun hasn’t seen much development over the last decade. He and his wife, who share their house with their daughter and 10-year-old grandson, are skeptical about the need for incentives for commercial development. For homeowners, he believes that the abatement program should be income-based, not broadly available. A retired Cleveland Clinic systems analyst who grew up in the city, he noted that it takes much more than tax breaks to make people want to move to, and stay in, a neighborhood. “This street has never been paved,” said Calhoun, who publishes a newspaper called the Ward 7 Observer. “The sidewalk has never been fixed. We’ve never had curbs on our street. … If the city were to do their thing correctly, the abatement process and all these other things would fall into place.” Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

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We are pleased to announce that Anita Fox has been promoted to Director. She provides senior Program and Project Management services across a wide variety of application, package, and infrastructure solutions on numerous platforms for both the Public and Commercial Sector. Anita joined RSM 2½ years ago, after spending over 20 years at a very large IT Services firm.

Richard C. Fedorovich, CPA, managing partner/ CEO of Bober Markey Fedorovich, assumed two new positions with leading associations in the region. He was named chair of Cleveland Leadership Center board and was appointed to the board of Ohio Society of Certified Public Accountants. “I am excited to work with the boards of these two outstanding organizations to make an impact on the region’s civic and economic health, as well as making contributions to advancing the accounting profession,” he said.

ACCOUNTING

RSM US LLP RSM is pleased to announce that Justine Laning has been promoted to Tax Senior Manager. Justine started her career with RSM approximately 9 years ago. She provides professional services and business advice to a wide range of clientele with a primary focus on consumer and industrial products and real estate companies. She specializes in privately held companies that are family or private equity-owned. Justine is aligned with the tax practice in Ohio.

FINANCIAL SERVICES

Johnson Investment Counsel Johnson Investment Counsel is pleased to announce that Anthony C. Kure, CFP® is now a shareholder and Principal of the firm. Tony joined Johnson Investment Counsel in 2017 and is a Director of the Northeastern Ohio Market and a Senior Portfolio Manager. Johnson Investment Counsel serves clients in 48 states and has six offices across Ohio and Michigan including Cincinnati, Cincinnati-Kenwood, ClevelandAkron, Columbus, Dayton, and Metro Detroit.

ACCOUNTING

RSM US LLP We are pleased to announce Matt Shaw has been promoted to Tax Senior Manager. Matt has nearly twelve years of experience in public accounting providing professional services and business advice to a diversified client base across the business and professional services, MWD and consumer and industrial products industries. Matt consults clients regarding nexus considerations, sales & use tax compliance and minimizing state tax exposures and liabilities as part of RSM’s national SALT practice.

FINANCIAL SERVICES

Johnson Investment Counsel Johnson Investment Counsel is pleased to announce that Joseph K. Radigan, CFP® is now a shareholder and Principal of the firm. Joe joined Johnson Investment Counsel in 2017 and is a Director of the Northeastern Ohio Market as well as a Senior Portfolio Manager. Johnson Investment Counsel serves clients in 48 states and has six offices across Ohio and Michigan including Cincinnati, Cincinnati-Kenwood, Cleveland-Akron, Columbus, Dayton, and Metro Detroit.

COVID-19

From Page 1

Though the health systems may have offered advice here and there, consulting at this scale is new for them. The science behind mitigating risk of spreading disease, of course, is not. Hospitals have been masking and cleaning for infectious disease and viruses long before COVID-19. Pivoting the expertise that they implement in their own facilities to community education made sense, Zoltanski said. In the absence of a vaccine or antiviral medication, the Cuyahoga County Board of Health is working with five tenants of non-pharmaceutical interventions, said Kevin Brennan, communications officer for the board. These are handwashing, social distancing, mask wearing, cleaning and disinfecting of commonly touched surfaces and health screenings. Because health systems and the board of health can reach different audiences, hospitals amplifying the messaging about such practices is helpful, he said. While the health systems have been able to provide some level of proactive, individualized guidance to businesses, the board’s business response is complaint-driven education. “I think we can’t be everywhere we want to be; we can’t be everything to everyone,” Brennan said. “So we’re glad that an authority such as a hospital would be willing to step up and fill that void. We feel like there’s reliability in the fact that they have expertise given the composition of their staff members and their history, so I think we’re pleased to see that.” Summa Health has proactively reached out to local businesses to offer resources, such as webinars and Q&A sessions. MetroHealth has worked on protocols with Cleveland Public Library,

PPP

From Page 4

The ultimate goal is racial equity at a time when minorities have suffered an outsized impact from the COVID-19 pandemic. A recent study by the Stanford Institute for Economic Policy Research found that active businesses in the U.S. dropped 22% between February and April. However, Black businesses experienced a drop of 41%, Latinx businesses dropped by 32%, and Asian businesses decreased by 26%. “These findings of early stage losses to small businesses have important policy implications and may portend longer-term ramifications for job losses and economic inequality,” according to the report.

Damage already done? Primm, who has three employees, received electronic updates from U.S. Bank, the largest bank in Ohio, as his PPP loan application was processed. One update said his loan moved back a step in the stages to approval. Meanwhile, Primm’s friends, fellow insurance agents, received loans from different lenders. Eventually, the first round of PPP funds were gone. With no loan, and without getting clear answers from the bank, Primm said he felt ignored. Over the same time frame, a dozen of the largest law firms in Northeast Ohio received several millions of dollars in PPP loans, as did other larger companies. Primm’s experience with U.S. Bank was likely the result of a glitch, which likely impacted other prospective borrowers.

Destination Cleveland and area schools, but the system isn’t making direct consulting with businesses a big part of their response. Rather, its work as an essential hospital has been more in health equity and access during this pandemic, like ensuring essential workers get tested and know how to protect themselves, said Dr. Brook Watts, MetroHealth’s vice president and chief quality officer. The Clinic is working with nearly 150 entities around the world to help them think about and implement best practices. Some of these have taken the form of a more public relationship. For instance, Clorox Co. and the Clinic announced in mid-July a partnership they would collaborate to develop a free online guide for employers to help them train personnel, select effective products and develop robust cleaning and disinfection processes. Some of the Clinic’s partnerships support individual businesses, while others help push information to the public more broadly, such as working with Jones Day to help with webinars for clients or collaborating with the Adventure Travel Trade Association — a network of travel agencies around the world — to develop free guidelines for travelers. UH, whose outreach focuses on Northeast Ohio, has also worked with convener organizations, like chambers of commerce or groups of mayors, to give them more information, answer specific questions and help them best communicate that. Although the Clinic doesn’t yet have an answer, it’s starting to look at what the free services and these new relationships might mean in the future. But for now, the focus is on the reality communities and businesses are facing for at least the near future: living with COVID-19. UH’s playbooks and all data published online are available for free. When businesses are looking for a deep

dive or would like an expert to review their back-to-work plans with an infectious disease doctor or specialist, UH has charged a bit to cover costs. The system doesn’t see it as a money-making operation but a mission-driven effort to slow the spread, Zoltanski said. “Our infectious disease, our clinicians were very motivated to get behind this,” she said. “As you can fully well imagine, they couldn’t possibly be busier than they are right now, but when I said to them, ‘Hey, we want to help businesses,’ they showed up on Saturday mornings to work through content in the little time off they had because we said we want to help the community, and that was really the why of this for us.” The Clinic’s “powerful brand” around the world is part of why organizations have reached out, Merlino said. Leveraging that brand could help to combat some of the misinformation, and in some ways mistrust, among members of the public. Merlino said the Clinic is working alongside UH and MetroHealth on how to educate and reinforce the message. “We’re starting to have these conversations. We need to be able to do more, to really conquer that,” he said. Though some parts of pandemic response are political, Zoltanski said UH sticks to the medicine, the science and the trusted partnership it has developed with the community. Beyond sharing the best medically sound advice, it’s important to also be transparent, honest and admit what remains unknown, she said. Merlino recognizes that there may always be people who don’t accept or follow the basic guidelines agreed upon by the scientific and medical communities, but it’s important to continue reinforcing their importance.

The bank ranks as the eighth-largest lender of PPP loans in the country by dollars, according to the SBA, and the sixth-largest lender by volume in Ohio. The bank also bested nearly all other banks in this market in terms of small loans provided, i.e. those less than $150,000. The first stage of PPP was rife with issues due to the unprecedented nature of the program. Fits and starts were bound to happen. “The response to the first phase of the PPP program was overwhelming and we, along with all of the other participating banks, had applications that they were not able to process before the funding was depleted,” said U.S. Bank in a statement. “In anticipation of the program reopening, our team never stopped working with our customers who submitted applications during the initial round to complete all processing and have them ready to send to the SBA as soon as the program reopened.” It was several days into the second program when a city official connected Primm with First Federal Lakewood, which closed his loan May 6. The process took about two days. Connecting minority-owned businesses that either weren’t aware of the PPP or who struggled to connect with a lender is something groups like the Urban League have helped with. The reasons why some may have been left out are nuanced, though. Obi points out that the smallest of small businesses sometimes don’t keep robust payroll records, something larger companies tend to have a better handle on. That also gives them a leg up when applying for PPP funds. Several large banks also worked only with established clients on PPP, putting smaller businesses without

the same deep relationships at a disadvantage. “These issues have a little less to do with ethnicity than size. And that leads back to the question of why do minorities have such small businesses? This is why minority businesses continue to stay down because systemic programs seem to help the businesses that have it all together,” Obi said. “If anything, this was eye opening for a lot of small businesses for the importance of having good payroll reports. Some small businesses were not staying on top of that.” Obi said the situation speaks to the significance of advocacy and public pressure, which led to shaming of some larger companies that maybe didn’t need PPP funds and ended up returning them. Without all that, it’s unlikely the improvements that were made with the program instilling some amount of racial equity would’ve been made. “I give credit to the banks for having conscience,” Obi said. “They began to say, we really have to help the smaller guys. And I give credit to public policy people for extending the deadline.” Short term, advocates continue to push for streamlined loan forgiveness applications for smaller businesses as those roll out in August, Farahi said, as well as continued focus on small businesses that didn’t receive loans as talks swirl of a second PPP loan for those who already got one. Some businesses have already shuttered that may have survived if they were able to access the PPP earlier. “We are concerned a lot of damage has already been done,” Farahi said.

Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre

Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

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CRAIN’S CLEVELAND LOOK BACK | UPS AND DOWNS AT AIRPORTS

Hopkins loses hub after expansion battle Named after two popular mayors, Cleveland Hopkins International and Burke Lakefront airports have seen a lot of ups and downs. Hopkins, the first municipally owned airport, grew so much as air travel became more popular after World War II that Burke, created in 1947 to service both land and amphibious planes, was designed to relieve the overflow traffic. But as the region’s economy declined, Burke followed. Hopkins’ trajectory was a bit different, with city leaders pushing for a major expansion of the facility in the early and mid-’90s, but the 2008 Great Recession, the merger of United and Continental airlines, and an eventual hub pullout upended the airport for years. — Kim Palmer

``THE HISTORY Built on more than 1,000 acres in 1925 to facilitate air mail delivery, Cleveland Municipal airport, renamed Hopkins in 1951, represented the gold standard in transportation innovation. There were ups and downs. United Airlines’ hub closure in the mid-’80s led to Continental Airlines’ expansion and a bitter battle in the mid-’90s between then-Cleveland Mayor Mike White and Brook Park Mayor Tom Coyne about the ownership and usage of the land surrounding Hopkins. White was eager to spend $50 million in municipal funds for facility and runway upgrades in 1992, and another $80 million in new construction seven years later to build a Concourse D and set the airport up to become an international hub for Continental. The expansion was projected to generate $5.1 billion in revenue and create 9,000 jobs, plus 30,000 airport-related jobs. One small problem, though: The land needed for a third runway already was occupied by Brook Park’s I-X Center. After years of court battles, the 2008 recession and, for Hopkins, an ill-timed merger of United and Continental in 2010, the I-X issue was moot. The two airlines combined to create one of the largest in the world at the time, with hubs in Denver, Houston, Los Angeles, Newark, San Francisco, Washington and Chicago, and the writing was on the wall for Hopkins’ hub status. The new United eviscerated Hopkins’ flight schedule in 2014, slashing the nearly 200 departures to around 70, closing the relatively new Concourse D and cutting about 470 jobs. The airline is still required to pay the airport more than $1 million a month in rent until 2027, but the facility after six years has fallen into disrepair. Burke Lakefront Airport, has experienced dwindling yearly numbers, with a little more than 30,000 annual flights taking off and landing in 2018, down from more than 100,000 in 2000.

``IN THEIR OWN WORDS “Our hub in Cleveland hasn’t been profitable for over a decade and has generated tens of millions of dollars of annual losses in recent years. We simply cannot continue to bear these losses.” ——United Airlines CEO Jeff Smisek, in a letter announcing that Cleveland would no longer be a hub.

This is a 2006 aerial photo of Hopkins International Airport. The 2008 recession, followed by the merger of United and Continental airlines, severely impacted the airport’s flight schedule. | CONTRIBUTED PHOTOS

``WHY IT MATTERS TODAY In 2019, as annual passenger numbers at Hopkins rose past 10 million from a low in 2014 of about 7.6 million, Cleveland officials embarked on a new airport master plan that’s scheduled to be completed in 2021. The plan aims to look at comprehensive changes to the airfield, the terminal and air space, as well as parking, ride share and hotel facilities. Before the COVID-19 pandemic, Hopkins had experienced a healthy increase in passenger numbers, and the proliferation of smaller carriers coupled with new longrange, smaller-plane designs were re-invigorating the airport. Meanwhile, Burke is losing more than $1 million annually, and it has become a target of criticism from some city leaders and urban designers looking to reclaim its 3-plus miles of lakefront access. Prospec-

“We are the largest one-runway airport in the country. It is a distinction that I look forward to relinquishing. Every day that we delay, they’re burning up the runways in Detroit, Pittsburgh and Columbus.” ——Former Cleveland Mayor Mike White, in 1992

tive designs of the lakefront without Burke envision replacing the boutique airport with restaurants, housing and/or park land. The airport’s supporters, though, question the viability of large-scale development on 450-acres made up entirely of dredged landfill.

Burke Lakefront Airport’s flight tally dropped to 30,000 in 2018.

“This is a small step for Hopkins and a big step for the region.” ——Dennis Eckart, president of the Greater Cleveland Growth Association, at the groundbreaking for the new runway in 2001.

THE WEEK IN THE SPOTLIGHT: Case Western Reserve University and the Cleveland Clinic will host the first 2020 presidential debate this fall at the Health Education Campus, a joint project between the two organizations. The debate, scheduled for Tuesday, Sept. 29, will be held in HEC’s Sheila and Eric Samson Pavilion. The Commission on Presidential Debates, a nonpartisan nonprofit, announced the new location for the debate on July 27 — the same day the original debate host, the University of Notre Dame, withdrew, citing pandemic concerns. AROUND DOWNTOWN: The former May Co. department store in Cleveland passed a milestone last week, securing its first resident after an apartment revamp that cost an estimated

nearby Beacon tower and Playhouse Square’s high-rise Lumen project, which welcomed its first tenants this month, the May could be a bellwether for the apartment market.

A rendering of the sixth-floor atrium of the redeveloped May Co. building. The space will be accessible only to tenants of the apartment project. | BEDROCK RENDERING

$140 million. Leasing at the 307-unit project started in July, and the first renter signed a lease on a penthouse July 27. The building’s landlord, De-

troit-based Bedrock, expects moveins to begin on three floors in mid-August. Another wave of arrivals is set for October. Along with the

IPO NEARLY A GO: Rocket Companies Inc., the Detroit-based mortgage company founded by billionaire Dan Gilbert, plans to raise up to almost $3.8 billion in its pending initial public offering. While the company has not announced a date for the IPO, an updated regulatory filing July 28 outlined a proposed offering price of $22 a share, selling 172.5 million shares for a total proposed IPO value of $3.795 billion. Rocket said the proposed price per share is in flux and likely will land between $20 and $22. The stock is expected to price Aug. 5.

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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 Chief Financial Officer Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Editorial & Business Offices 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 (216) 522-1383 Volume 41, Number 28 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the first issue in January, July and September, the last issue in May and the fourth issue in November, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2020 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 (877) 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax (313) 446-6777.

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