Crain's Cleveland Business

LOOK BACK GLOBAL CENTER FOR HEALTH INNOVATION Born as a medical mart, the center continues its search for an identity. PAGE 27

CRAINSCLEVELAND.COM I AUGUST 17, 2020

LAW

Largest law firm in NEO? Stay tuned Smaller regionals gain on BigLaw peers BY JEREMY NOBILE

HEALTH CARE

DELAYS IN CARE WILL BE COSTLY The Cleveland Clinic, like other hospitals, has implemented a series of safety measures, including masking, increasing hand sanitizer, symptom screenings and temperature checks, for those entering its facilities. | CLEVELAND CLINIC

As hospitals’ volumes return, leaders are still urging patients to seek needed treatments BY LYDIA COUTRÉ | After significant drops in patient volumes in mid-March and April under a state mandate to postpone nonessential surgeries and procedures, health systems are working to help patients understand that it is safe and important that they return for care. The Cleveland Clinic’s patient volumes have climbed to about 85% of previous levels in January and February. University Hospitals reports that it’s pretty much back to its budgeted patient levels. And Summa Health is between 90% and 100% of its preCOVID-19 volumes across services.

As hospitals encourage patients to return, they’re seeing a concerning pattern of patients continuing to defer care or returning after delayed care with more severe issues. “That’s really what is going to be the much higher price than COVID in the long run,” said Dr. Beri Ridgeway, associate chief of staff for the Clinic. See PATIENTS on Page 26

“(DEFERRED CARE) IS REALLY WHAT IS GOING TO BE THE MUCH HIGHER PRICE THAN COVID IN THE LONG RUN.” — Dr. Beri Ridgeway, Cleveland Clinic associate chief of staff

SPORTS BUSINESS

Spire poised to capitalize on college timeouts Geneva complex’s new ownership is recruiting athletes whose seasons are paused BY KEVIN KLEPS

It was almost mid-August, and the only signs of the five dorms that would soon be located on the grounds of Spire Institute and Academy were foundations that had been laid and huge piles of dirt that had been dug behind the aquatics center. “We have a fair bit to do in the

next three weeks,” said Rich Odell, Spire’s co-managing director. Starting on Monday, Aug. 17, the five dorms — each 2,360 square feet and manufactured in Sugarcreek by Skyline Homes — will be delivered and installed in a matter of hours. By Aug. 18, three of the five buildings should be set and ready for inspections. That’s good, since students at Spire’s boarding

academy will begin to arrive on Aug. 28 and start school three days later. The blur of activity on the massive campus in Geneva has been a constant since Axxella, a Baltimore investment firm that’s a subsidiary of Blue Ocean, announced the acquisition of Spire in December. See SPIRE on Page 26

The foundations have been laid for new dorms that will be installed at Spire this week. | KEVIN KLEPS/CRAIN’S

VOL. 41, NO. 30 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

Global BigLaw firm Jones Day has grown into a dominating presence in the Cleveland legal market since its founding nearly 130 years ago, yet it’s ceding ground to smaller regionals growing bigger in the local market while it shrinks. To be fair, owning the title of the largest firm in any given market — especially those outside marquee regions like New York and Washington, D.C. — is not incredibly important to most firms. In a tech-enabled and interconnected business world, the location in which an attorney is based is less relevant than it was decades ago. And most firms don’t hire people exclusively for the sake of growth. Even if no one is overtly aspiring to be the largest firm in Cleveland, the patterns in firms growing or shrinking indicate there may soon be a new largest firm in town, which speaks to the evolving business of law. Jones Day remains the largest firm in Northeast Ohio in 2020 with 172 in-market lawyers, according to the Crain’s law firm list. It’s followed by BigLaw firm BakerHostetler (160 lawyers) and Cleveland-based regionals Benesch (146 lawyers) and Tucker Ellis LLP (142 lawyers). Jones Day’s Cleveland office has shed lawyers at a rate of about nine a year since 2010, when its in-market bench was 236 lawyers deep, a decrease since that peak of 26%. Firmwide, Jones Day reports more than 2,500 attorneys in total, the same it reported in 2010. Baker’s peak in Cleveland in the past decade was at 193 lawyers in 2012. It reports 978 firmwide attorneys today. Its local office has decreased 17% since that high-water mark, while its total attorneys has increased 49% during the same time. Benesch and Tucker report firmwide attorneys of 259 and 223, respectively. Both have grown in Cleveland more than 40% compared to their sizes 10 years ago. See LAW FIRMS on Page 25

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ECONOMY

Team NEO delves into region’s racial economic inequalities Report seeks to identify workforce participation disparities using economic, social metrics BBY KIM PALMER

Black workers in Northeast Ohio have historically suffered from higher unemployment and poverty rates, lower wages and receive less education compared to their white counterparts, according to a report from Team NEO. The report, titled “Misaligned Opportunities: How Racial Inequities Lead to Skills Gaps in Northeast Ohio,” was released Monday, Aug. 17. The supplemental publication is a play on the title of the economic development organization’s “Aligning Opportunities” annual report, which provides research into the regional talent gap. With the ‘“Misaligned” report, Team NEO is attempting to identify workforce participation disparities using the metrics of educational attainment, entrepreneurship and the proportion of minority representation in high-demand occupations. “Economic success has not been equitable, and opportunities have not been equal for all members of our community, particularly people of color,” Team NEO chief executive officer Bill Koehler said. “By looking at this data, we can try and better understand how racial inequities lead to talent gaps in Northeast Ohio, and facilitate solutions.” The “Misaligned” report says in Northeast Ohio people of color make up more than 20% of the total population — 77% are white — but experience higher relative rates of unemployment and poverty. For example, 35% of people of color versus 14% of white residents in Northeast Ohio live below the poverty line. Median household incomes, according to the research, are profoundly skewed in the region, with a more than $25,000 gap between the median $55,687 income for white households and the $30,403 for Black households. There is a more than $11,000 deficit for Hispanic households compared to white counterparts, according to the report, which is based on data from the U.S. Census Bureau, 2014-2018 American Community Survey (ACS). The data provides a backdrop to understanding multiple hurdles

Racial proportionality of in-demand jobs According to a Team NEO report on misaligned opportunities, 20 occupations that offer family-sustaining wages and a low chance of being replaced by automation are still filled with an overwhelmingly white workforce. White

Hispanic/Latino

Black/African American

Asian

Two or more races

SOFTWARE DEVELOPERS, APPLICATIONS 74%

2% 4% 19%

1%

COMPUTER OCCUPATIONS 77%

3%

12%

6%

2%

INFORMATION SECURITY ANALYSTS 79%

3%

12%

4% 2%

BUSINESS OPERATIONS SPECIALISTS 80%

3%

3% 1%

13%

OPERATIONS RESEARCH ANALYSTS 80%

2%

12%

5% 1%

TRAINING AND DEVELOPMENT SPECIALISTS 81%

3%

1% 1%

14%

DATABASE ADMINISTRATORS 82%

2%

7%

7%

2%

12%

2% 1%

2%

10%

4% 1%

1%

MEDICAL AND HEALTH SERVICES MANAGERS 83%

REGISTERED NURSES 84%

WEB DEVELOPERS 84%

4% 5% 4% 1%

FINANCIAL ANALYSTS 84%

2%

7%

6%

HUMAN RESOURCE MANAGERS 84%

2% 1%

4% 9%

MANAGEMENT ANALYSTS 85%

2%

3% 1%

9%

MANAGERS, EMERGING FIELDS 88%

6%

2% 1%

6%

2% 1%

1% 6%

2% 1%

3%

FINANCIAL MANAGERS 88%

2%

NURSE PRACTICTIONERS 90%

1%

PHYSICAL THERAPISTS 90%

1% 4% 4% 1%

MARKETING MANAGERS 91%

2%

4%

2% 1%

2%

5%

1% 1%

GENERAL AND OPERATIONS MANAGERS 91%

OCCUPATIONAL THERAPISTS

1% 1% 4% 1%

92%

0

50%

SOURCE: TEAM NEO REPORT ON MISALIGNED OPPORTUNITIES

100% CRAIN’S CLEVELAND BUSINESS GRAPHIC

communities of color — defined as 51% or more of the population are people of color — face when it comes to what Jacob W. Duritsky, vice president of strategy and research at Team NEO, refers to as having better integration into the economy. “Minorities, and particularly African Americans, make up a meaningful 20%-25% of our demographics, but there are obviously structural issues that are keeping these communities from fully participating in the economy,” Duritsky said. Actual workforce participation numbers mirror income inequality. Even before the COVID-19-related economic downtown, unemployment for white individuals in the region in 2019 on average for the year was 5%, while unemployment for Black individuals was at levels that were more than double (12%). Unemployment rates for Hispanic people, who make up 5% of the population in Cuyahoga County, were at 10%. Post-COVID-19 unemployment rates paint a bleaker picture: In the peak of unemployment in April, Black workers nationally saw a 16.7% rate, compared to 14.2% for whites. “The pandemic has exposed this equity disparity problem that already existed to a greater degree,” said Zach Schiller, research director at research organization Policy Matters Ohio. “This is data that people needed to see, although I don’t think it is a big surprise. But the facts here show that we have a serious problem.” Digging down into one of the factors related to employment, education or skills, the report found that only 23% of Black men and women in Northeast Ohio have a bachelor’s degree or above, compared with 35% of the white residents, another obstacle in pursuing “family-sustaining wages,” according to Duritsky. “The underrepresentation of minority groups in postsecondary degrees or certificates is stark,” he said. That’s even the case when people of color are better represented. For example, in the health care field, one of the region’s top three sectors, 82%

of bachelor’s degrees in higher-paying, registered nursing degrees were completed by white students, compared with less than 5% by Black students, who tend to be overrepresented in the lower-paying health care fields of practical and vocational nursing fields, Duritsky said. Minority proportionality in what Team NEO has deemed “20 in-demand occupations” for the region is skewed as those growing careers in the region remain majority white. Occupations in technology and IT, jobs that offer family-sustaining wages and a low chance of automation, con-

“ECONOMIC SUCCESS HAS NOT BEEN EQUITABLE, AND OPPORTUNITIES HAVE NOT BEEN EQUAL FOR ALL MEMBERS OF OUR COMMUNITY, PARTICULARLY PEOPLE OF COLOR.” ——Team NEO chief executive officer Bill Koehler

tinue to have only between 4% and 14% nonwhite, Asian or Hispanic workers, according to Team NEO findings. Hispanic representation in those same jobs hovers around 2%-4%. “In only one of the 20 sectors are African American workers proportionate to their population in the region,” Duritsky said. These jobs are projected to grow over the next five years, pay higher than average salaries and have significant demand that employers are having trouble filing, he said. “If we could get proportionate representation throughout the economy from minorities in the region overall, we could close our talent gap by about one-third. That is just how imperative it is to connect people to greater opportunities. It is not a silver bullet, but it would have a huge impact,” he said. Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive

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EDUCATION

Northeast Ohio’s faculty prepare for campus reopenings BBY RACHEL ABBEY MCCAFFERTY

Back in March, when the COVID-19 pandemic started forcing changes at the region’s colleges and universities, Case Western Reserve University made sure faculty were at the decision-making table. The university’s president and provost made it clear that they wanted as much input from the Faculty Senate as possible, said Joachim Voss, professor of nursing. Voss was vice chair of the senate at the time and took over as chair in May. The goal, Voss said, was to address issues on a structural level and to make sure everyone felt “safe, respected and heard.” “This was really an all-hands-ondeck effort,” Voss said. As college campuses across Northeast Ohio start to reopen for the fall, the spotlight is on the faculty who will be running classes, whether remotely or in person. And at least at institutions like Case Western Reserve, where educators have been directly involved in the planning process, faculty seem to feel ready for the challenge. Voss counted about 300 faculty and academic staff members who have been involved with the various committees set up to assist with Case Western Reserve’s reopening. Faculty spent the first half of the summer focused on how to best run different kinds of classes, from large lectures to small, and from laboratories to discussions to clinicals, setting up subcommittees centered on each, said Peter A. Shulman, associate professor of history and chair of the university’s Faculty Senate Committee on Undergraduate Education. His committee’s goal, and the goal of the administration, was “to involve as many regular faculty as possible in

this decision-making and planning process,” Shulman said. The faculty’s commitment has been “extraordinary,” Case Western Reserve president Barbara R. Snyder and provost Ben Vinson III said in an emailed statement. “They have worked tirelessly to adapt their courses for students here and/or remote, and made additional modifications after we reduced the number of students able to come to campus late last week,” the statement, sent on Aug. 13, read. “They are deeply dedicated to our students, and we are profoundly grateful.” The two noted that the relationships built through formal structures like the Faculty Senate gave the university a foundation for the work needed to adjust to remote learning last spring and to the online and in-person options planned for the fall. Shulman said the administration let schools and departments determine what kind of instruction would work best for them. And many departments left those individual decisions up to the faculty who will be teaching the courses. Shulman will be teaching one of his courses, a senior capstone project in history, remotely, while he plans to have students meet in person in another. In that latter class, an introductory writing seminar, he’ll take a hybrid approach. The plan will be for students to primarily meet online, but for small groups at a time to meet in person. He’ll hold those discussions outside when he can or socially distanced indoors. At Lorain County Community College, faculty will be holding as many classes remotely as possible this fall, said Hope M. Moon, professor of nursing and president of the college’s Faculty Senate. And anything that

needs face-to-face instruction, like lab work, will require small class sizes, mask-wearing and social distancing. That “conservative approach,” coupled with transparency and regular communication from the administration, means the faculty feels pretty good about the fall, Moon said. They might be frustrated they can’t meet for face-toface instruction or struggle a bit with the technology, but there’s a sense that they’re doing the best they can. At Kent State University, the decision was made — and shared — early on to let faculty choose the class delivery that was best for them, said associate professor of geography Jennifer Mapes. That meant faculty didn’t just get to choose what was best for them, but they were able to do that in June and then spend the rest of the summer planning. “I already teach online, maybe a little less than half the time, so I felt really confident that we could do a good job with it, but only if we have the time to prepare,” she said. Mapes, who will be teaching her classes remote or online this fall, took part in a weeklong workshop on remote teaching provided by the university. The workshop addressed ev-

erything from technical issues with online teaching to best practices for pedagogy. Faculty even received a stipend for their time. The “opt-in” policy Kent State is using for in-person teaching this fall means faculty don’t have to give a reason to take their classes remote for the semester, said Deborah Smith, professor of philosophy and president of Kent State’s American Association of University Professors. And those who have chosen in-person can make the switch later if they feel that’s necessary. Smith will be teaching remotely this fall. The university is providing some technology — it’s given her a tablet to help with grading — and faculty can request open classrooms to use university’s cameras and whiteboards during their course time, if need be. Kent State felt an inclusive approach, involving everyone from faculty and staff to students and community members, would lead to better outcomes overall, Melody Tankersley, interim senior vice president and provost, said in an emailed statement. “Our faculty leadership, in particular, has been guiding decisions that

directly affect faculty, instruction, student learning and learning spaces as they are the experts on how to create safe, vibrant and supportive learning environments and how to shape the policies and procedures that are the foundation for the work of teaching and learning,” she said. Kent State got the faculty union involved early, back in March, Smith said, and faculty have been involved in conversations about everything from bringing students back to the dorms to how to keep classrooms clean. The groups have tried to focus on large guiding principles as they make decisions. In the spring, that principle was “hold harmless,” Smith said. Now, she said, the ideas everyone is rallying behind are “reasonable, equitable and fair.” Tracy Laux, president of the fulltime, nontenure track bargaining unit for the union and senior lecturer of mathematics, said he hadn’t seen this level of collaboration in his 31 years at the university. Right now, everyone is working toward the “greater good,” Laux said. Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

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Pulte plants flag at former Geauga Lake amusement park

Atlanta-based builder plans 308 units of homes and townhouses BY STAN BULLARD

Memories of Geauga Lake amusement park will be evoked by national homebuilder PulteGroup Inc.’s plans for a massive residential community on the Aurora side of the site. Named “Renaissance Park” to play on the park’s long history, drawings show two of its streets will be named “Dipper Lane” and “River Run Road,” recalling, respectively, the park’s Big Dipper roller coaster and its Grizzly River Run water ride. Another street will be called “Memory Lane.” The names and project recently took a big step toward reality. The Atlanta-based builder shelled out $2 million to Cedar Fair LP of Sandusky for the 245-acre Aurora side of the park last month, according to the Portage County Auditor’s website. The county assigned it a market value of $2.5 million for property taxes in 2019. The sale is easily overlooked given how much public effort has gone into the next play at the beloved park, which Cedar Fair shut in 2006. Aurora City Council adopted legislation authorizing Pulte’s plans and the city’s planning commission signed off May 20 on the design of the townhouses. The measures capped a planning process that Pulte launched in January 2019. Aurora Mayor Ann Womer Benjamin said in a phone interview Friday, Aug. 14, that Pulte plans to hold a ceremony to launch its groundbreaking at the site on Thursday, Aug. 20. “The development of the remaining acreage is a very good use of the property,” Womer Benjamin said. Pulte could have constructed as many as 560 residential units on the vast site. But the final plan calls for 308 units of housing. She said Pulte never asked for maximum density on the site, knowing that kind of density would never fly.

“We also have some confidence that Pulte will do an excellent job on this project,” Womer Benjamin said. “And believe me, the city will be monitoring it closely. It’s an important development for Pulte and for Aurora.” A big feature of the future use of the lakeside part of the property remains to be defined. A 90-acre area has been set aside for a future park, but who will own it remains to be worked out, she said. “We do know it is going to be a public access area,” she added. A webpage for Renaissance Park is already posted on Pulte’s website. It shows the layout of a first phase of the site on the southeast side of the namesake lake near Squires and Treat roads. Not all the land will be going to housing. All told, a nature preserve, walking trails and pocket parks will occupy about half the property. Pulte is also offering to sell a 28acre parcel with frontage on U.S. 43 zoned for commercial use to other real estate developers. The table was set for these steps in 2014, when Aurora voters changed the zoning of the park to mixed-use development from industrial. Experts said at the time that selling the parcel would have been even more difficult with industrial zoning because potential buyers would have no certainty of obtaining zoning from the city that suited their plans. Current plans call for Pulte to put three types of housing on the bulk of the property: single-family colonial homes, ranches and townhouses. Pricing is not yet available. Designs show 64 single-family homes and 75 townhouses in a first phase. Cedar Fair bought Geauga Lake park from New York-based Six Flags Entertainment Corp. in 2004. Six Flags previously combined the former Geauga Lake and adjoining Sea World parks into a single operation it

called Six Flags Worlds of Adventure. Cedar Fair brought back the original Geauga Lake park name. The Wildwater Kingdom water park operated on part of the property until 2016. The park traced its history to operation as a lakefront picnic park in 1887. Cedar Fair consummated the sale as it navigates financial challenges associated with COVID-19. However, for a company its size, the sale is immaterial. The transaction did not merit a mention when Cedar Fair announced its second-quarter results Aug. 5. It also was not mentioned on the conference call with analysts and investors the same day, although Richard Zimmerman, Cedar Fair CEO, disclosed the company has a “cash burn” rate of more than $30 million monthly due to truncated operations in its peak summer season, according to a Seeking Alpha transcript of the conference call. Aurora also holds only part of the final chapters of the Geauga Lake park story. Another 200 acres is located on the other side of the lake in Geauga County’s Bainbridge Township. Womer Benjamin said the city of Aurora has been in talks with a prospective buyer for the Bainbridge land about the prospects for a joint economic development district to aid development of that parcel. The city of Aurora controls utilities that would be needed to build on the Bainbridge parcel. When pressed, Womer Benjamin said the prospective buyer of the other part of the property is Industrial Commercial Properties of Solon. ICP surfaced as a potential buyer of the Bainbridge land in January, when the township rejected a request for a variance for the site. Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

Group pays $1.76M for Statler Garage BY STAN BULLARD

Private, out-of-court settlements aren’t the final word where property is concerned. Instead, Cuyahoga County land records show part of how Indiana, Pa.based First Commonwealth Bank’s case has been resolved against HH Cleveland Statler LP, the former owner of the Statler Garage on the 900 East block of Euclid Avenue. The garage, constructed on the rear of what was once the Stillman Theatre, is now owned by a new ownership group, Euclid Avenue Garage LLC. The company, based in Boca Raton, Fla., shelled out $1.76 million for the six-story garage. The 150-car garage was transferred to the new owner last month, according to Cuyahoga County land records, weeks after the Cuyahoga County Common Pleas Court case was settled out of court and dismissed. The bank had been pursuing the remaining $3.9 million it was owed on a mortgage it issued to the prior owner, HH Cleveland Statler LLC, in 2016 to buy the structure for an un-

disclosed price. The bank has terminated its loan on the property, according to land records. The transfer marks the exit of Delray Beach, Fla.-based Hudson Holdings from the downtown Cleveland real estate market. Through HH Cleveland Huntington, an investor group led by Hudson had bought and later sold the millionsquare-foot Union Trust Building, 925 Euclid Ave., to Cleveland-based apartment and Key Plaza owner Frank Sinito. Hudson Holdings later bought the garage to provide needed parking for the proposed conversion of the empty office building to new uses. When it sold the office building to Sinito, the Hudson Holdings affiliate retained the garage through a separate company. Two sources familiar with the situation, who spoke on grounds they not be identified, said Euclid Avenue Garage is led by a former investor with Hudson Holdings in the Cleveland projects. Tax bills for Euclid Avenue Garage are directed to the address of Burton English eShop, a provider of language instruction software. A phone message left for Zevi Aber, president

of Burton, was not returned. The Euclid garage group holds what was likely a valuable piece of property in downtown Cleveland — at least before the pandemic took most office occupants home since March and Euclid storefronts were destroyed during civil unrest May 30. Sinito — who still is pursuing the conversion of Union Trust, best known as the former Huntington Building, to residential and other uses — owns the massive building to the west. He also owns The Statler, an apartment and retail building at 1215 Euclid Ave. east of the garage. The Statler gives the garage its name and even has control over a shared wall on the garage’s east side. Apartments are being installed immediately east of the building in the Euclid Grand project, 1001 Euclid. Apartments also opened last year in The Athlon, a residential conversion of the former Cleveland Athletic Club, at 1118 Euclid Ave. across the street. All might be likely suitors should the garage go up for sale. Or it may serve area resident tenants whose parking requirements might enrich the new owner.

4 | CRAIN’S CLEVELAND BUSINESS | AUGUST 17, 2020

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EDITORIAL

Dark days A

t a time when many citizens need, or soon will need, Ohio’s government to be at its best, the state Legislature is at a low point in perceptions of its integrity. It doesn’t have to stay that way, though, if lawmakers are willing to embrace some sensible measures to reduce the influence in Ohio of “dark money” groups, which aren’t required to disclose their donors, in political campaigns. The recent arrest of former Ohio House Speaker Larry Householder and others in the House Bill 6 scandal is prompting consideration in Columbus about how to eliminate the unethical funneling of money to lawmakers that allegedly greased the way for bad legislative sausage-making. As federal prosecutors tell it, “Company A,” thought to be FirstEnergy and related entities, used a 501(c)(4) called Generation Now to direct more than $60 million to political WITHOUT KNOWING that HouseWHERE THE BACKING OF organizations holder controlled, with the prize being passage of a $1 GROUPS COMES FROM, billion-plus nuclear bailout IT’S IMPOSSIBLE FOR bill. As Cleveland.com reported, “FirstEnergy’s VOTERS TO EVALUATE funding — which was spent THEIR MESSAGES on buying political ads and hiring consultants and DURING A POLITICAL campaign staff — was obCAMPAIGN. scured by routing it through various political organizations and business entities with vague names and lax disclosure rules,” practices made possible by dark money. U.S. Energy News, in its analysis of how dark money was used in the passage of HB 6, added that the independent expenditures “often escape reporting requirements, even when attack ads against a candidate’s opponent clearly aim to influence the outcome of a campaign. Likewise, issue-focused ads also escape reporting requirements unless they relate to a specific ballot proposal, as opposed to general warnings against plant closures, foreign influence or certain types of energy.” Without knowing where the backing of groups like Generation Now and others comes from, it’s impossible for voters to

evaluate their messages during a political campaign. Whatever comes next in energy reform in Ohio cannot be tainted by the financial maneuverings that led to HB 6. State Reps. Gayle Manning, a Republican from North Ridgeville, and Jessica Miranda, a Democrat from Forest Park, are co-sponsoring HB 737, a campaign-finance reform bill that would require mandatory donor disclosures for all political spending in Ohio, even if a group is organized as a nonprofit. Cleveland.com noted that Manning and Miranda “also want to require more frequent disclosures — once every other month, instead of the common practice of quarterly reports — and to give the Secretary of State’s Office subpoena power to force organizations to share records if they don’t file them willingly.” Ohio Secretary of State Frank LaRose appeared earlier this month with Reps. Manning and Miranda in a show of support for the measure. “We cannot continue down the path of what is, but should aspire to pursue what should be when it comes to campaign finance reform,” Manning said in a statement. After the HB 6 mess we’ve just seen, could anyone really oppose this move toward transparency? We hope not. But it’s worth noting that the new bill is modeled on one sponsored a decade ago by now Lt. Gov. Jon Husted, when he was a member of the Legislature. It didn’t pass then, and legislators in Ohio and elsewhere have made a habit of saying the right things about campaign reform measures — and then backing off when the public’s attention turns elsewhere. Husted in a statement said that had the 2010 measure passed, “Ohio would be in a much better place today. Perhaps enough lessons have been learned to get it passed this time.” Campaign financing can be a wonky subject that seems theoretical and disconnected from voters’ everyday lives. But HB 6 is a real example in which the loopholes built into the system led to the passage of compromised legislation. We hope our elected state legislators understand the urgent need to restore faith in the process and shine some light on the money trail, so the next big piece of legislation isn’t viewed as being bought and paid for by forces cloaking their true agendas.

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

In the wake of the killing of George Floyd, we have been heartened by Greater Cleveland’s interest in supporting Black business owners. Partners have asked for lists of minority-owned businesses to publicize, how they might help them grow, and which inclusive practices might suit their workplace as business restarts. While publicly committing to racial equity is a critical first step, companies can Hall, senior vice stand in solidarity with minority business president of the owners more tangibly by purchasing Greater their products and services. The broader Cleveland story of COVID-19 is that corporations Partnership, have significantly reduced their discre- wrote this on tionary spending, which often involves behalf of GCP’s Equity & cuts on contracts to minority suppliers. Many companies have decided to Inclusion Team. consolidate their vendor pool, which has added to the pain minority-owned suppliers already feel. To understand their challenges and direct Minority Business Enterprises (MBEs) to resources that could help them, Greater Cleveland Partnership’s Equity & Inclusion division contacted some of the registered businesses in the Inclusion Marketplace, an online network we created to connect minority-owned businesses and large corporate buyers. Forty registered suppliers CORPORATIONS HAVE discussed the health of their businesses, and the observa- SIGNIFICANTLY tions of note include: REDUCED THEIR ``Many secured future projects have been canceled by DISCRETIONARY corporate buyers indefinitely. ``Apart from the businesses SPENDING, WHICH that have over $1 million in OFTEN INVOLVES revenue, most MBEs are facing immediate cash flow is- CUTS ON CONTRACTS sues and applied for federal TO MINORITY Paycheck Protection (PPP) and Economic Injury Disaster SUPPLIERS. Loans (EIDL) loans. ``Most sole proprietorships or businesses generating less than $500,000 have not received PPP or EIDL responses. `Business ` owners we spoke with who were approved for PPP or EIDL generate $500,000, and explained that their previous banking relationships assured their ability to access the aid. ``Numerous companies have attempted to pivot and leverage e-commerce for traditional retail. COVID-19 did not create the economic disparity between minority-owned business suppliers and their counterparts: It has only magnified it. We are witnessing the cumulative impact of structural racism on wealth inequality and low reserves of social and financial capital. The fact that minority businesses have historically faced challenges in establishing strong relationships with corporate buyers and financial institutions is only a symptom of deeper societal challenges like redlining. As corporations strategize on how to operate in the “new normal,” we have a distinct opportunity to get it right. Some of the activities we would ask you to consider include: 1. Use resources such as the Inclusion Marketplace to connect with minority-owned businesses and support them by posting potential business opportunities.

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 HALL 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 17, 2020

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OPINION

PERSONAL VIEW

How government should change in a post-quarantine America BY SHANE MCRANN BIGELOW

Everyone has a prediction about life in a post-quarantine world. The COVID-19 pandemic has taught Americans a lot, and there are further learnings to come. Two things we have learned: We are grateful for all that can be done online, and so aware of that which remains stubbornly anchored in the physical world, dependent on personal interactions. Many routine tasks we used to carry out in person were ripe for migration into the digital realm — grocery shopping is one example, virtual doctor visits another. Some of these changes may become permanent. However, there are many tasks that can still be completed only in-person and that often involve personal administrative work — tasks that rely on paper, pen and another person present. Examples are those where we need to visit a government department or other local authority: a visit to the department of motor vehicles, a passport application, a home purchase, the execution of a will. Of course, it is precisely these crucial administrative tasks that have been most disrupted by the pandemic as

services. We will expect all services — private and public — to be responsive. Of all the post-pandemic predictions offered these days, those with the greatest likelihood of materializing fall into two categories: those trends already underway before the pandemic and which have accelerated during it, and those trends proBigelow is CEO pelled by strong financial incentives. of Ownum, a For example, it is reasonable to technology imagine that working remotely will holding continue to be a feature of profescompany that sional life long after COVID-19, bemanufactures cause it promises real estate savings vehicle title for employers and saves commuting software. costs for employees. The digitization of administrative processes and transactions, such as those carried out at the DMV, is another candidate for permanent change. Digitization has swept through innumerable industries and is accelerating. With clear financial incentives in place for taxpayers, consumers, government and private enterprise, we should welcome this evolution. Numerous state governments, agencies and businesses are embracing the digitization of critical records and paper processes currently responsible for much cost, time and inconvenience. Perhaps one day before long, your car title will no longer be filed away in a safety deposit box, or worse, exist as a crumpled piece of paper in your glove compartment, but will instead be a secure online record — always available to you, and always current, without a trip to the DMV. Digitization of vital records can help securely and safely reopen the American economy. The more day-today business can be executed instantly, securely and without long lines, signatures, copy machines, mail and face-to-face interactions, the more resilient our economy will be. The good news is that investment in new ways of recording, storing and sharing data is accelerating due to the stress on legacy systems and the growing awareness of the opportunity. We should demand from government the service level we expect from the private sector. As a technology and business community, we must continue to develop and implement secure, scalable and efficient information systems that can win the trust of government and private enterprise. The prize is clear, and within reach: a world where taxing but vital offline processes are migrated into the digital world, unlocking vast efficiencies and benefits both predictable and unforeseeable.

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IN NEARLY ALL OF THE UNITED STATES, YOU CANNOT COMPLETE A DRIVING LICENSE APPLICATION, ID APPLICATION OR CAR RETITLING ONLINE TODAY. NOR IS IT POSSIBLE TO DESIGNATE SOMEONE TO VISIT THE DMV ON YOUR BEHALF. offices have been closed, employees sent home, and no secure digital alternative exists. To elaborate on one example, in nearly all of the United States, you cannot complete a driving license application, ID application or car retitling online today. Nor is it possible to designate someone to visit the DMV on your behalf. A car trip cannot be replaced by a video-call transaction with a DMV representative. If a driver needs to register a newly purchased car with the local DMV, there is no alternative to traveling to the office, waiting in line, presenting ID and signing on the dotted line. It is clear to see how such a visit unnecessarily risks public health and safety. And since the DMV issues IDs, as well as licenses, many who travel on public transit to reach these local offices are disproportionately affected by not being able to access these government services. Unfortunately, the poorest in our communities are the most hurt. Even after public health and safety concerns fade, Americans will have become accustomed to shopping, communicating and conducting business online. In the wake of COVID-19, society will have become even more expectant of paperless, online, secure and always-open

HALL

From Page 6

IF WE FAIL TO ADDRESS THE NEEDS OF OUR DIVERSE SUPPLIERS, OUR REGION’S PROGRESS WILL BE GREATLY DIMINISHED.

2. Constantly review your procurement processes to ensure they remain inclusive and open. 3. Find at least one MBE to compete for all opportunities. 4. Coordinate or participate in outreach events to meet minority suppliers. 5. Develop mentoring programs to assist minority suppliers to grow and develop by leveraging the relationship with your Tier 1 and Tier 2 vendors and have them train MBE’s in the areas they may need additional development. 6. Deliver procurement workshops to educate minority suppliers on “how to do business” with your company. 7. Provide each department with vendor diversity goals. Equity and inclusion is not a luxury good to be cut in

rounds of corporate austerity. If we fail to address the needs of our diverse suppliers, our region’s progress will be greatly diminished. Supplier diversity can help the economy recover. In a recent Forbes article, Geri Stengel writes that the benefits to the Fortune 1000 are that diverse small businesses produce innovative products, become more agile, increase competition and more. “It is a mutually beneficial relationship between small and big businesses. Large corporations buy the goods and services from 1.1 million small supplier businesses, many of which are owned by minorities, women, LGBTQ+, individuals with disabilities and veterans,” she states. “These diverse businesses are what Hello Alice (a predictive technology platform) calls the ‘New Majority.’ ”

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CRAIN’S ANNIVERSARY SPECIAL

NE

M o

NEWSMAKERS | 1980S

FORTY YEARS OF NEWSMAKERS

A look at NEO’s movers and shakers of the past four decades To mark our 40th anniversary, Crain’s Cleveland Business is recognizing eight Newsmakers, two from each decade — people and events that have made headlines since we first published in 1980. Narrowing 40 years of news down to eight Newsmakers was no easy task. While some choices were obvious — landing the 2016 RNC, Cleveland winning the Rock Hall — others were harder to land on. But our task became easier when we framed it in terms of people and events that are still shaping our region, culture and economy: the revival of city neighborhoods, the return of a beloved sports franchise, working to build our economy, the redevelopment of downtown. Because when you think of history, its most important aspect isn’t about what happened in the past, but how the past shapes the future.

THE 1980S

``Community development organizations opens the door to neighborhood revival. PAGE 8 ``Mike Benz pulls Cleveland leaders together to win the Rock & Roll Hall of Fame. PAGE 9

THE 1990S

``Tom Chema earns arrows and accolades as the guiding force for building Gateway. PAGE 10 ``High-profile attorney Fred Nance helps lead the Browns’ return to Cleveland. PAGE 10

THE 2000S

``After merger mania in the 1990s, hospital rivalries are still healthy. PAGE 12

``Business and civic leaders embrace the challenge of improving NEO’s economy. PAGE 14

THE 2010S

``David Gilbert leads the charge to land the 2016 Republican National Convention. PAGE 15

``The merger that keeps Cleveland on the regional banking map. PAGE 15

HOW TO REGISTER FOR THE VIRTUAL NEWSMAKERS EVENT In honor of Crain’s Cleveland Business’ 40th anniversary, we are virtually celebrating four decades of newsworthy leaders. The virtual event — at 11 a.m. Wednesday, Sept. 2 — will recognize our Crain’s Newsmaker Award winners. Go to CrainsCleveland.com to register.

8 | CRAIN’S CLEVELAND BUSINESS | August 17, 2020

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Making a mark in the place they call home

BBY T

W

``BY STAN BULLARD | Mill Creek in Cleveland’s Slavic Village. Beacon Place in Fairfax. Tillman Park in the

Detroit-Shoreway Neighborhood. Those and other real estate developments in the 1980s and ’90s share more than roofing, bricks, bedrooms and Cleveland addresses. All were conceived by community development corporations that were focused on improving life on the city’s neighborhood level. Each served a time as land owners before builders undertook the multimillion-dollar projects, such as Zaremba Cleveland in the first two cases. At Tillman, the Detroit Shoreway Community Development Corp. did the job itself. Mark McDermott — a vice president and Ohio manager for the Columbia, Md.-based Enterprise Community Partners Inc., which focuses on affordable housing — said each of those multimillion-dollar projects played a part in reviving the city’s stagnant residential development after Mayor Michael White took office in 1990. “They had to be big to show what kind of impact housing could have in the city,” McDermott said, “to create environments to show what was possible and attract investments from the city. The important thing about CDCs is their laserlike focus on the neighborhoods they serve.” The other reason for the rise of those big projects was that there was so little new housing being built in the city. The year before White made housing a city focus in 1991, there were just 59 home permits issued. Today, single townhouse projects incorporate that many units, and the latest apartment buildings downtown have four times that many. Jeff Ramsey, former executive director of Detroit Shoreway, said the CDC had to build the project itself because it could find no developers willing to undertake a townhouse project at West 41st Street overlooking the Shoreway with Lake Erie and downtown views.

“AT THE TIME THERE WERE NO PROJECTS TO SHOW BANKS AND BUILDERS THE SUPPORT FOR LIVING IN THE CITY.” Jeff Ramsey, former executive director of Detroit Shoreway

“We had a study by Tom Bier (a population and housing expert at Cleveland State University) showing that enough suburbanites were interested in living in the city to support thousands of units of high-end housing,” Ramsey recalled. “But at the time, there were no projects to show banks and builders the support for living in the city.” The 16 townhouses finished in 1998 were designed to sell for $159,000. But the average selling price turned out to be $200,000 due to buyer-ordered upgrades. Townhomes there now sell for $300,000. Recent projects at and near Battery Park overlooking the Shoreway near West 73rd Street boast townhouses in 2020 selling for more than $500,000. The complexity of the projects also required

an intermediary. When the predecessor of Slavic Village Development Corp., the Broadway Area Housing Corp., acquired the 111acre site of a former state psychiatric hospital, it found it had to excavate an impromptu landfill of old hospital beds, pipes and other equipment. However, the organization found a suburban builder willing to undertake the project itself, the late Nathan Zaremba. All told, 200 market-rate homes went into the neighborhood along with a small park. On the East Side, Zaremba played a similar role at Beacon Place at East 82nd Street and Euclid Avenue. The project planted market-rate houses within walking distance of the Cleveland Clinic Foundation and University Circle. The CDCs also went through transformations. Early efforts by CHN, formerly Cleveland Housing Network, and Famicos of Cleveland had focused on rehabilitating houses on little-known streets, but their expertise guided other CDCs and helped shape the city’s new housing policy. Cleveland Neighborhood Progress, a foundation and corporate-backed intermediary, also helped CDCs gain capacity and winnowed out weak CDCs, to 29 in 2020 from 40 in the 1990s.

ILLUSTRATIONS FOR CRAIN’S BY CHLOE CUSHMAN

8/13/2020 12:43:00 PM

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NEWSMAKERS | 1980S

Commercial Real Estate Property Management Facility Management Construction Services

Mike Benz chases ‘the one and only’ Rock Hall BY TIMOTHY MAGAW

W

hen the nebulous idea of a rock ’n’ roll museum first piqued Mike Benz’s interest in the mid-1980s, Cleveland’s civic and government leaders were grasping for something — anything — to add some sheen to the city. Cleveland had been ravaged by a steady exodus of major employers and was still feeling the sting of being the only city since the Great Depression to default on its financial obligations. A Rock & Roll Hall of Fame — “the one and only,” Benz still beams, referencing a key phrase from the movie “Miracle on 34th Street” — was just what the city needed. “What is rock ’n’ roll? It’s a snapshot of how we grew up, and something that keeps evolving,” said Benz, who in the mid-1980s was a top official with the Greater Cleveland Growth Association, the precursor to today’s Greater Cleveland Partnership. “There was excitement about something world-class for our community at a time when we really needed it.” So, Benz went to work, with one caveat from his boss, Bill Bryant: “Don’t spend too much money.” The pitch? Cleveland simply deserved the Rock Hall. Cleveland radio personality Alan Freed is credited by many with coining the term “rock ’n’ roll,” and his Moondog Coronation Ball is widely recognized as the first rock concert. Add Hank LoConti’s legendary Agora concert club, WMMS and the homegrown Belkin Productions powerhouse to the mix, and that’s as solid a rock ’n’ roll résumé as you’ll find. The contingent of Cleveland government, civic and business leaders corralled by Benz readied to make a pitch. However, the industry moguls who had formed the Rock & Roll Hall of Fame Foundation were planning a more modest museum at a donated brownstone in New York City. When Norm N. Nite, a legendary disc jockey and rock historian, approached Ahmet Ertegun about entertaining Cleveland as a possibility, the Atlantic Records founder said, “Absolutely not.” “I could have gotten up, shook his hand and walked out, but I saw a window of opportunity,” recalled Nite, who went on to recite his hometown’s rock pedigree. Something struck a chord with Ertegun, who agreed to meet with the Cleveland collective. Knowing a formal growth association pitch wouldn’t cut it — this was rock ’n’ roll, after all — the committee got to work on a video showcasing Cleveland’s credentials. The video opened with Freed and narration by Ernie Anderson — Ghoulardi, as Clevelanders know him — who had become the official voice of ABC Television. Again, something clicked. During the meeting, a note was passed to foundation brass Suzan Evans: “Pack your bags. We’re going to Cleveland.” What had been a hushed lobbying effort, though, soon spilled into the mainstream. A news release announcing the first induction ceremo-

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ny stated that Cleveland was interested in being home to the Rock Hall. “And suddenly the country went crazy,” Benz said. Soon, dozens of cities — Philadelphia, Detroit, Nashville and Memphis, among others — were vying for the prize. “We were in a world war,” Benz said. “Our strategy changed: How do we not only get their attention in New York, but how do we win?” Shortly after, foundation officials arrived in Cleveland for their wooing session and tour. About 660,000 people signed petitions advocating for the hall to be in Cleveland, but

“WE WERE IN A WORLD WAR. OUR STRATEGY CHANGED: HOW DO WE NOT ONLY GET THEIR ATTENTION IN NEW YORK, BUT HOW DO WE WIN?” Mike Benz

the lobbying effort didn’t stop there. The Cleveland contingent rounded up enough money to score tables at the first induction ceremony in New York that honored Elvis, Chuck Berry, James Brown, Little Richard and others, hoping that might endear the city further. At one point, Benz’s group learned that USA Today had sponsored a national poll to determine which city deserved the museum. Again, the team mobilized its network. With every local rock station promoting the poll, Cleveland pummeled the competition. And despite pleas from the foundation, Cleveland didn’t take its foot off

the gas. At Nite’s suggestion, they staged a series of concerts throughout the city on the anniversary of the Moondog Coronation Ball — a move that again elicited calls from foundation brass in New York to settle down or risk losing the opportunity. That spring, Benz finally got the call: “Mike, it’s Suzan Evans. Wink wink.” Then she hung up. That was the signal. “I started crying,” Benz recalled. It would be years before shovels would hit the earth. Costs ballooned from the $26 million first floated to more than $90 million — $65 million of which were public dollars. But Cleveland ultimately crossed the finish line, and the ribbon was cut on Sept. 1, 1995. “Cleveland had the determination,” said Nite, whose book about the quest to land the Rock Hall, “The House That Rock Built,” will publish in September. “The people here in Cleveland worked diligently to make this happen.” As the Rock Hall has matured, so has the city. No longer viewed as a beacon of hope for a city fallen on hard times, the Rock Hall symbolizes what is possible in Cleveland. Today, the Rock Hall is eyeing a multimillion-dollar physical expansion and now hosts the induction ceremonies here every other year. In many ways, according to current CEO Greg Harris, the Rock Hall spent its first 25 years justifying the rock ’n’ roll art form as worthy of a museum — and justify it, it has. Since 1995, the Rock Hall has welcomed nearly 13 million visitors and generated $2 billion for the Northeast Ohio region. “The power of rock ’n’ roll is key,” Harris said. “We can’t just be good. We have to be powerful and great.” And, as Benz said, “the one and only.”

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NEWSMAKERS | 1990S

Tom Chema opens Cleveland’s Gateway ``BY JAY MILLER | Controversy over the cost and extent of public financing of the Gate-

way sports complex has never died. Though the tax on alcohol and tobacco — the sin tax — to pay for construction was put successfully before voters in 1990, earlier this month came news that the Cuyahoga County, through Gateway Development Corp., which acts as landlord for Progressive Field and Rocket Mortgage FieldHouse, will pay $3.5 million for improvements to Progressive Field. The Cleveland Indians already have completed and paid contractors for the work, for which the county is obligated to pay. It’s no longer his problem, but for the early years of Gateway, Thomas Chema was at the eye of the storm, serving as Gateway’s executive director from 1990 to 1995. Chema grew up in East Liverpool, along the Ohio River in southeast Ohio. He is a 1968 graduate of the University of Notre Dame and a 1971 graduate of Harvard Law School. He began his career with the Cleveland-based law firm of Arter & Hadden in 1971. Politics was always on his mind, though, he said in a recent interview. He became an ally of Democratic Ohio Gov. Richard Celeste, who served from 1983 to 1991. Celeste appointed Chema executive director of the Ohio Lottery Commission in 1983 and chairman of the Ohio Public Utilities Commission in 1985, before the governor then put Chema’s name forward to lead the Gateway project. When the sin tax passed, it was designed to cover half of the $344 million cost of the complex, with the sports teams to come up with the other half. The initial cost estimate was $344 million. But because of changes, delays and rising costs, the final tab would be in the neighborhood of $425 million. The teams, Chema said, paid for upgrades they wanted but

the public picked up the tab for the excess. When he left in 1995, a year after the buildings had opened, Gateway still faced finding a way to cover a $28 million construction deficit. And so Chema left to mixed reviews. “The project died a thousand deaths,” said David Abbott, in a 2004 article in a Reuters publication on the state’s top lawyers. “Tom has a way of methodically hanging in there. He has good strategic vision and nuts-and-bolts operational understanding. Some people have one or the other; he has both.” Abbott, now executive director of The George Gund Foundation, was the Cuyahoga County administrator during the building of Gateway. But Cleveland Scene writer Frank Lewis criticized Chema in 2010, when Chema, who by then was president of Hiram College, considered a run for Cuyahoga County executive. Lewis trashed Chema, alleging he’d led a group of civic and business leaders who “duped Cuyahoga County voters into supporting the Gateway project, which created Cleveland’s professional baseball and basketball stadiums and, ultimately, corporate welfare for Cleveland’s wealthy professional team owners.” Crain’s publisher at the time, Brian Tucker, responded to Lewis’ criticism, saying that Chema deserved the region’s gratitude for his work on Gateway and that “20 years from now, I believe urban historians will mark the construction of Gateway as a linchpin in our city’s reconstruction.” Chema survived his Gateway experience. When he left, he went into business as The Gateway Group, con-

sulting on the development and construction of stadiums and arenas, conference centers and other civic and academic facilities. Then, in 2003, he was named president of Hiram College after serving for more than a decade on the Portage County liberal arts college’s board of directors. There, he dug the school out of a financial deficit, grew undergraduate enrollment by 40% and raised money for a $50 million overhaul of the campus. He retired from Hiram in 2014 and returned to his Gateway Group work. Looking back on his experience

“UNTIL YOU DESIGN A BUILDING ON A SITE, YOU REALLY DO NOT KNOW WHAT THAT BUILDING IS GOING TO COST.” Tom Chema

consulting on more than 40 civic developments, Chema defended how the cost of Gateway ballooned. “Until you design a building on a site, you really do not know what that building is going to cost,” he said. “You can take a look at what other people have done and do a per-seat count or something, (but) they’re all different.” He added that few sports facilities are expected to make money. See CHEMA on Page 13

Fred Nance battles to bring the Browns home BBY DOUGLAS J. GUTH

during law school, making the situation with the Browns particularly compelling, he noted. Modell had been campaigning for refurbishments for the aging Municipal Stadium, the team’s longtime home. Nance’s lease had plans for a $175 million renovation, though the Browns owner did not want that money coming from residents. In a June 1995 letter that Nance now has framed in his den, Modell called for a moratorium on further negotiations until the end of the 1995 season. Nance and the city spent the ensuing months gathering public support for stadium renovations, including addition of a sin tax to that November’s ballot. A few days before the scheduled vote, Nance and White were working in the mayor’s office when Modell appeared on a muted television newscast. Turning up the sound revealed an announcement that left many Clevelanders stunned and angered: Modell said he was moving their cherished NFL team to Baltimore. “It was shock and utter disbelief,” Nance said. “After the moratorium, we got a little nervous, but we never knew what to expect.” Nance and the mayor flew to New

L

ike most Clevelanders of a certain age, attorney Fred Nance grew up a Browns fan. On Thanksgiving Day 1970, a teenage Nance played in the city championship for St. Ignatius High School on the very field where the Browns had won the NFL championship six years prior. “It was a thrill of a lifetime to be in the same stadium where our heroes played,” Nance said. “It’s a memory I will always cherish.” Even for a kid who grew up in the blue-collar Kinsman neighborhood on Cleveland's East Side, Nance’s connection to the franchise has a somewhat different meaning today. The high-profile attorney — now global managing partner at Squire Patton Boggs — helped lead litigation that returned the Browns to Cleveland after owner Art Modell relocated his football team to Baltimore in 1995. Nance negotiated for the city in a lease dispute with Modell at the request of Mayor Michael R. White, who he'd previously represented on Squire’s behalf in a 1991 grand jury investigation. Nance didn’t have much experience with leases other than signing an apartment lease

10 | CRAIN’S CLEVELAND BUSINESS | August 17, 2020

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York the next night to meet NFL commissioner Paul Tagliabue. White and Tagliabue quickly formed a bond, with the commissioner promising to “do right by Cleveland.” At the same time, Nance filed a lawsuit at the city’s request in Cuyahoga County Common Pleas Court, accusing the Browns of con-

“I SAW A BOYHOOD FRIEND AND HE ASKED WHAT IT WAS LIKE TO HAVE ALL OF CLEVELAND RIDING ON YOUR BACK.” Fred Nance

spiring to violate their lease with the city. The NFL interceded, freeing the team from further litigation while promising Cleveland a new team, one that would retain the name and colors that fans had been cheering on for decades. See NANCE on Page 13

ILLUSTRATIONS FOR CRAIN’S BY CHLOE CUSHMAN

8/13/2020 12:44:43 PM

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NEWSMAKERS | 2000S

Acquisition-hungry hospital giants alter health care landscape in Northeast Ohio BY LYDIA COUTRÉ | Hospital consolidation has been a consistent theme of Northeast Ohio’s health care industry for decades.

After a merger mania in the 1990s among hospitals in the region, the hospitals arms race heated up once again, with both Cleveland Clinic and University Hospitals bringing more independent hospitals into their networks. Hospital leaders are quick to highlight what regions gain in hospital consolidations, including potentially preventing independent hospitals from being forced to cut back service lines or even shut their doors. Through consolidation, systems may add service lines, physicians and clinical expertise to more communities, where patients benefit from the system’s technology resources, including access to more integrated electronic health records. On the other hand, industry observers point to what is potentially lost as regions that were once home to a slew of independent hospitals become dominated by massive health care systems. An often cited concern is costs as insurance companies that negotiate with health care providers lose leverage when hospitals consolidate. “Over the last 40 years, there’s just been so much activity up there in that Northeast (Ohio) area,” said John Palmer, Ohio Hospital Association spokesman. “It’s definitely been one of the more active areas when it comes to health care delivery service changes.” An ultimately unsuccessful mid1990s effort by a for-profit hospital chain to build a broad base of operations in the region was the catalyst for Cleveland Clinic and University Hospitals to bring more community hospitals into their health systems. Columbia/HCA Healthcare entered Northeast Ohio in 1995 by agreeing to buy half the assets of the then four-hospital Sisters of Charity of St. Augustine Health System. UH, the Clinic and community hospitals in the area were “very concerned,” said Tom Campanella, health care executive in residence and professor of health economics (retired), at Baldwin Wallace University. A community hospital at the time might have been visited by an executive

DURING DR. DELOS “TOBY” COSGROVE’S TENURE, THE CLEVELAND CLINIC MORE THAN DOUBLED ITS REVENUES, TOTAL VISITS AND RESEARCH FUNDING, OPENED NEW BUILDINGS AND ACQUIRED HOSPITALS AND SYSTEMS. from the Clinic in the morning, a leader from UH in the afternoon and the regional CEO of Columbia at some point during the day, he said. “The common message from all three of these was more than likely you can’t stand alone and you either need to come with one of us or you’re not going to be able to survive,” Campanella said. Columbia/HCA exited the market in 1999, but not before it sparked a whirlwind of consolidation. Meridia Health System merged with the Clinic in 1997. Today, these are the Clinic’s Euclid, South Pointe and Hillcrest hospitals. The Clinic also ac-

quired Fairview, Lutheran and Lakewood hospitals during that time. Also in the 1990s, UH brought into its family Geauga, Bedford, Conneaut, Geneva and Richmond community hospitals. In the early 2000s, both UH and the Clinic gained new leaders. The longest-serving leader of Cleveland’s powerhouse health systems, Thomas F. Zenty III, joined UH as CEO in 2003 and is poised to retire in January 2021. In 2014 and 2015, UH acquired five hospitals: UH Elyria, Parma, Portage, Samaritan and St. John medical centers. By the end of 2015, the moves helped grow UH’s market share to 32%, from 20% in 2010.

“First and foremost, I think if you always put patients first, then .... any number of elements that became part of these hospitals joining us were beneficial to the patients,” Zenty said. Dr. Delos “Toby” Cosgrove was named president and CEO of the Clinic a year after Zenty took the helm at UH. Cosgrove, who led the Clinic from 2004 through 2017, ushered in a new era for the health system, propelling it from a regional provider to an international name. In addition to his work elevating the status of Cleveland Clinic, colleagues credit Cosgrove for changing the national narrative on health and health

care. During his tenure, the Clinic more than doubled its revenues, total visits and research funding. The system opened new buildings and acquired hospitals and systems. Union Hospital in Dover became a full member of the Clinic in 2018, an effort that began under Cosgrove’s leadership. Cosgrove was also leading the system when it took on full ownership of the Akron General Health System in 2015. Hospital consolidation is, of course, not limited to UH and the Clinic. The Aultman Foundation of Canton took over a struggling hospital in Wayne County in 2012. Out-of-state players have also been looking at Northeast Ohio. Michigan-based Beaumont Health System’s had planned to acquire Summa Health, but Beaumont ultimately ended that plan this spring amid the pandemic. Today, Northeast Ohio has few remaining independent hospitals, and partnership activity is ongoing. Last year under the leadership of Dr. Tom Mihaljevic, Cleveland Clinic’s current CEO and president, the Clinic and Sisters of Charity Health System signed a letter of intent to explore the possibility of Mercy Medical Center in Canton joining the Clinic. Lake Health System announced in March that it would begin a search for a strategic partner. Future changes in how health care is paid for and delivered may prompt more community hospitals and even smaller health systems to look for partners. How much the ongoing pandemic will add pressure to some of those challenges remains to be seen, but COVID-19 has been a major blow to finances at health systems across the region, state and country. But even without the upheaval of recent months, various forms of hospital consolidation are likely to continue.

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ILLUSTRATION FOR CRAIN’S BY CHLOE CUSHMAN

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“As an economic proposition, the buildings, per se, do not pay for themselves — they just don’t,” he said. “I know of only one Major League Baseball stadium that has paid for itself — that’s the Los Angeles Dodgers’ Chavez Ravine building. And I know of only a couple of arenas that paid for themselves: the United Center in Chicago, Staples Center in Los Angeles, and there’s a building in Worcester, Mass., and a building in Davenport, Iowa. No football stadium ever will.” Still, he defends spending public money for buildings used by privately owned sports teams. “I think there is a plus that the public owns them and I understand that people don’t like being taxed and spending money on venues. The people playing in those venues are millionaires and the owners of the teams may be billionaires, so you get that sort of visceral reaction,” he said. “But if you want that quality of life that having sports teams provides, you have to subsidize it, and it’s better to subsidize the venue than to subsidize the teams. And then you get the economic development discussion.” Chema said he thinks the Gateway stadium and arena have had a positive impact on downtown Cleveland and possibly beyond, though he knows “every academic economist who has ever lived and written about the subject (concludes) that these are not economic development generators.” He admitted that if you were to judge the impact on the state’s economy of Gateway, FirstEnergy Stadium and Paul Brown Stadium in Cincinnati, where he served as an adviser, “you’re not going to see much of an impact,” he said. “On the other hand, if you want to narrow your focus and take a look at what we now call the Historic Gateway Neighborhood downtown and take a look at the economic impact in that neighborhood, the argument that they’re not a good economic development generator goes away.”

The next months and years were a whirlwind of congressional visits, press conferences and meetings with prospective ownership groups. Death threats against Modell forced Nance to take a deposition from the vilified businessman at a secret location. Meanwhile, fans brought power tools to the stadium during the original Browns’ last games there, aiming to bring pieces of their beloved franchise home. Finally, the Browns got a new owner and erected a new stadium. Through his work for the city, Nance found himself thrust into the spotlight. “I saw a boyhood friend and he asked what it was like to have all of Cleveland riding on your back,” Nance recalled. “Some people thought we didn’t do enough — they were angry about losing the team. I knew what we did or didn’t do was going to impact the region indefinitely and change the course of Cleveland’s culture. It was a tremendous amount of responsibility.” The experience led to Nance becoming a finalist for NFL commissioner in 2006, alongside a stint as Browns’ general counsel and managing the maneuvers of NBA star LeBron James. Nance’s prominent cases included releasing Cleveland schools from years of court-ordered busing and spearheading talks to develop a new convention center and medical merchandise mart in downtown Cleveland. He'd had designs on becoming an attorney since age 12, never guessing the depth of the impact he’d eventually have on his hometown. “Like most people of color, I became a lawyer for social justice reasons,” Nance said. “I wanted to make a difference for the people of the neighborhood where I grew up. I’ve been able to do well personally and do well in the community.”

WE SOLVE PROBLEMS BETTER –

together. thefundneo.org For more than a decade, the Fund for Our Economic Future has envisioned a Northeast Ohio with good jobs and rising incomes for everyone. It is our honor to be among the 2020 Newsmakers, and we congratulate all those recognized for their contributions over the last four decades to bring this vision closer to every home in the region.

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NEWSMAKERS | 2000S

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Building a better regional economy ``BY JAY MILLER | On June 8, 2018, Jon Pinney, managing partner of the Kohrman Jackson & Krantz law firm, told a City Club of Cleveland audience

that the region’s efforts to boost the economy weren’t working. “We’re getting our butts kicked. We’re dead last or near the bottom in most economic metrics,” he said. “Our population continues to decline at an alarming rate (and) our economy has not evolved into an innovation economy quickly enough.” Pinney, who got his first taste of economic development when he was general counsel for the push to attract and then plan for the 2016 Republican National Convention, cited data, including Forbes’ “Best Cities for Jobs” survey, which ranked Cleveland last out of 71 major metro areas. Pinney, of course, was not the first business or civic leader to worry about a stagnant Northeast Ohio economy. Since the global recession of the early 1970s, Northeast Ohio, like most metropolitan areas of the Midwest, saw key industries — auto- and steelmakers and other manufacturers — reduce their presence and their labor forces by opening factories outside the United States or automating their production. Population stagnation, while other parts of the country were growing, followed. In addition, Northeast Ohio had its own obstacles with which to grapple. Since Cleveland in 1978 became the first city since the Great Depression to default on municipal loans, not to mention the burning of the polluted Cuyahoga River in 1969, the city became known as the “mistake on the lake.” Over the past 40 years, a succession of business and civic leaders have taken on the challenge of leading efforts to improve the region’s economy. In 1980, a group of eight Cleveland business leaders commissioned a study to restore the community’s reputation and better understand the regional economy. “It was an extension of my role as CEO of a major corporation to recognize that we had to

do something about the environment in which we lived,” E. Mandell deWindt, the CEO of Eaton Corp. and a leader of Cleve-

“FIRST, WE’D LOST A LOT OF MAJOR COMPANIES, AND SECOND, (THE CEOS) KNEW IF THE REGION DIDN’T IMPROVE, THEY WERE GOING TO HAVE DIFFICULTY GETTING EMPLOYEES. SO THE CEOS REALLY FOCUSED ON COMMUNITY DEVELOPMENT, ON FIXING THE QUALITY OF PLACE TO HELP IMPROVE THEIR LABOR MARKETS, BUT ALSO THERE WAS A LOT OF PRIDE IN DOING GOOD FOR YOUR TOWN.” Edward “Ned” Hill, professor of economic development at Ohio State University

land Tomorrow, told Fortune magazine in 1989. That study found, not surprisingly, that the region had lost its competitive position in the world economy. In response, Cleveland Tomorrow, which would eventually have 50 corporate CEOs as members, was created to offer a new role for business to play in economic development. Over the next two decades, Cleveland Tomorrow and its corporate leaders raised millions of dollars to fund physical improvements, such as the redevelopment of Playhouse Square, and to create a pool of venture capital to encourage the growth of new businesses. The corporate leaders of the time saw that for their companies to continue to thrive, the region needed to change, said Edward “Ned” Hill, professor of economic development at Ohio State University and former dean of the Maxine Goodman Levin College of Urban Affairs at Cleveland State University, in an interview. “First, we’d lost a lot of major companies, and second, (the CEOs) knew if the region didn’t improve, they were going to have difficulty getting employees,” Hill said. “So the CEOs really focused on community development, on fixing the quality of place to help im-

prove their labor markets, but also there was a lot of pride in doing good for your town.” However, by 2003, the group was losing steam. Founded as a CEO-only group, its members needed to turn their attention back to their corporations. Also, they admitted, the group had not succeeded as well as hoped. “I don’t think any of us feels we’ve been as effective as we could be,” David Daberko, the group’s chairman and chair of National City Corp., told The Plain Dealer in December 2003, when it was announced that Cleveland Tomorrow would combine with the Greater Cleveland Growth Association, the regional chamber of commerce, and the Greater Cleveland Roundtable, a group that focused on expanding opportunities for minorities, to form a group called the Greater Cleveland Partnership (GCP). GCP would continue Cleveland Tomorrow’s role as an investor in the region. But also in 2003, a new group — Team NEO — had been formed to take up the cause of economic development, not just in the Cleveland metropolitan area but in 14 — later 18 — counties of Northeast Ohio, an area that included the Akron and Youngstown areas. See ECONOMY on Page 16

14 | CRAIN’S CLEVELAND BUSINESS | August 17, 2020

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NEWSMAKERS | 2010S

Merger keeps Cleveland on the banking map BY JEREMY NOBILE | In reshaping the face of the Northeast Ohio banking industry, consolidation has also distilled

the number of regional banks headquartered in this market to just one: KeyBank. Though KeyCorp, KeyBank’s parent company, has adopted roots here tracing back to the mid-19th century, the lone large bank based in Cleveland today technically isn’t even a firm native to this market. Had it not been for amenities the region offered over Key’s original headquarters in Albany, N.Y., decades ago, there may not be a super-regional, locally based banking services company here at all in 2020. Today’s KeyCorp is the result of the combination between Cleveland’s Society Corp. and then-Albany-based Key in 1994. Key stockholders retained 52% of the new company to Society’s 48% in the deal, which was valued at $7.8 billion and described as a veritable merger of equals with no company paying a premium over the other (though Key retained Society’s stock history). The combined company retained the Key name but brought headquarters to Cleveland — where a giant red Key logo now adorns its headquarters on the tallest building in the state. Key then-chairman Victor Riley, a “curmudgeonly” sort and “outspoken critic” of Albany’s airport management, preferred the more central location, lower state taxes and better airport services in Northeast Ohio, according to The New York Times — ironic considering, nearly 30 years later, the lack of flight options into and out of the city is a common criticism of Cleveland Hopkins International Airport. The deal was of national news interest. It was viewed as a harbinger of a new era for out-of-market bank M&A as in-market deals, with their inherent value for cost-cutting synergies, were becoming harder to come by. With separate footprints and outof-market deals rare at the time, the two seemed to make an odd couple.

KEY SPENT YEARS UNDER THE LEADERSHIP OF BETH MOONEY, A REPEAT WINNER OF AMERICAN BANKER’S “MOST POWERFUL WOMAN IN BANKING” TITLE.

Nonetheless, Key inherited a century of banking history in Cleveland through Society and the responsibilities that come with it. Society took over the troubled AmeriTrust Corp., which was founded in 1894 as Cleveland Trust Co., just two years before agreeing to merge with Key. Howard Boyle, chairman with Hometown Bank in Kent who’s been with the company since the 1970s, said Cleveland Trust was “God’s gift to banking” in the Cleveland area before they overstretched and fell into financial troubles, not a company anyone would’ve expected to dissolve into another company due to hard time. If it had not been determined that Key would develop its business from a Cleveland foothold following the Society deal, the business community would be worse for wear economically. “Everyone is used to competing. We all have our customer bases, our boards of directors. We’re all trying to outdo the other: Who can do more for the community? You lose that when you don’t have the C-suite downtown. And that’s detrimental to the community,” Boyle said. “Key, I’m sure, is very, very good to Cleveland.” Key has drawn its share of criticisms. Despite being the only regional bank based in Cleveland, and one of the largest banks in the country,

Key has a worse track record for mortgage lending in Cuyahoga County’s poorer neighborhoods than many other nonlocal lenders. Improved lending in low- or moderate-income (LMI) communities is something the company was pressured to do as part of winning a county banking services contract awarded earlier this year. Those shortcomings in mind, Key’s

“WE’RE ALL TRYING TO OUTDO THE OTHER: WHO CAN DO MORE FOR THE COMMUNITY? YOU LOSE THAT WHEN YOU DON’T HAVE THE C-SUITE DOWNTOWN. KEY, I’M SURE, IS VERY, VERY GOOD TO CLEVELAND.” Howard Boyle, chairman with Hometown Bank

presence in the market can’t be understated. From financing local deals to supporting charitable causes and corporate sponsorships to being one of the market’s largest employers — KeyCorp provides nearly 5,700 jobs in Northeast Ohio — Key’s attention to Cleveland is unquestionably a partial byproduct of its inherited connections here. See KEY on Page 16

Gilbert gets the world watching Cleveland’s RNC BY DAN SHINGLER

long after about a dozen other contenders had been working on their bids. But it caught up quickly, thanks to an extraordinary coordinated effort on the part of virtually all local officials. Gilbert said that cooperative spirit, as much as anything — even new hotels and a revamped downtown — is what won over the RNC. “Certainly, in the minds of everybody outside of Cleveland, we were a long shot — from the other cities we competed with to, probably in the beginning, even the leadership of the RNC. But the approach we took was just so coordinated. … It was a beautiful thing to see,” Gilbert said. Federal officials, who worked closely with their local counterparts on security for the event, estimate 70,000 people were in town for the convention. Hotel rooms were full in downtown Cleveland, across town and in many of the city’s surrounding suburbs, with some guests staying as far away as Canton. Among the visitors were countless reporters and news crews from outlets across the country and the world — all needing access to high-speed internet, places to work and the other infrastructure and services the news business requires. Cleveland delivered. All of it went on against a backdrop

I

f it wasn’t the moment that Cleveland became a new city, it was at least the event that threw back the curtain so the world could see its transformation. The 2016 Republican National Convention brought more visitors, cameras and news crews to town than any other event in living memory. That was, after all, the reason backers, including David Gilbert, had been pushing for the event since 2013. Gilbert, best known as president and CEO of Destination Cleveland and the Greater Cleveland Sports Commission, back then was also president and CEO of the host committee that planned and coordinated the event locally. “It was the best way to take advantage of where Cleveland was at the time,” Gilbert said in an interview, recalling when he and a few others first began seeking support for holding the convention in Cleveland. “Some of us knew what an incredible opportunity it would be for Cleveland, and a lot of us thought, from the very beginning, that it was just the right time for Cleveland to do this,” he added. The city got a late start, though. Cleveland began chasing the event

ILLUSTRATIONS FOR CRAIN’S BY CHLOE CUSHMAN

P014_015_CL_20200817.indd 15

of political turmoil, too, as the Republican Party prepared to nominate perhaps its most contentious candidate ever — Donald Trump — and numer-

“IN THE MINDS OF EVERYBODY OUTSIDE OF CLEVELAND, WE WERE A LONG SHOT ... BUT THE APPROACH WE TOOK WAS JUST SO COORDINATED. … IT WAS A BEAUTIFUL THING TO SEE.” David Gilbert

ous groups were planning big protests. That may have helped Cleveland gain visibility, though. The ratings firm Nielsen reported that more than 32 million people watched the event’s final night on July 21, when it said 10 networks aired live coverage from about 10 p.m. until nearly midnight. See GILBERT on Page 16

AUGUST 17, 2020 | CRAIN’S CLEVELAND BUSINESS | 15

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FOCUS | FORTY YEARS OF NEWSMAKERS

GILBERT

From Page 15

Nielsen also reported that on social media, nearly a half-million people sent out 2 million tweets that final night. Even though the event fell short of generating the $200 million in direct spending that backers had hoped for — it only pried about $110 million from attendees’ pockets — Gilbert and others today consider it a success because of its public relations value for the city. “In terms of the city’s reputation, yeah, I think it proved to the world that Cleveland was capable of successfully hosting large-scale events,” said Joe Mosbrook, managing partner of Acclaim Communications in Cleveland. Since the RNC, the city has had an easier time drawing other major events, such as the NFL draft and the MLB All-Star Game, Mosbrook said, because it’s proven it can handle and entertain large crowds. There were few real problems and really none that put the city in a bad light before a national audience

KEY

From Page 15

Some of that is required, like lending as required by the Community Reinvestment Act. But the headquarters here are important. Having local executive and directors in the market should mean local decisionmaking that is more tuned in to the business community. And being headquartered here means having a greater connection with the Federal Reserve Bank of Cleveland — meaning a Cleveland

during the RNC, Gilbert said. Protests were smaller than feared — there were actually more arrests at that year’s Democratic National Convention in Philadelphia — and Cleveland performed almost flawlessly, he said. “I’ve just never seen anything where so much of the community worked so hard on the same thing and absolutely rowed in the same direction," Gilbert said. "And it really paid off.” None of it would have likely happened without Gilbert, who has long been known as one of Cleveland’s top cheerleaders. Mosbrook, who's known Gilbert casually since high school in Cleveland Heights, said Gilbert has a reputation for boundless energy. “He shows up at the office at like 4:30 in the morning, does some work and then goes running. He’s still in the office working before everyone else when he gets back,” Mosbrook said. Gilbert remembers the RNC as a milestone in a golden era for Cleveland, joking that perhaps winning the convention even provided some confidence that helped the Cavaliers win the NBA title that same year. That said, he concedes now that

he actually didn’t get to see much of the convention itself. He and his team were too busy making sure it went off well. “We weren’t there to enjoy the convention. When it was here, it was running very early in the morning to late the next morning that we were up and working on issues. … It was basically 24-7 for a while,” Gilbert said. What he did get to enjoy was seeing his city shine, he said, recalling a moment from the convention’s second night. “I remember walking up Fourth Street and getting to Fourth and Euclid, and there was just so much activity and excitement. It was like the crazy train stopped in Cleveland and dropped everyone off for four days,” Gilbert said. The event didn’t do anything for Gilbert’s reputation but boost it higher, Mosbrook said. “That’s why they kept giving him more jobs to do,” he added with a laugh. “David Gilbert has done a spectacular job of promoting Cleveland to a much larger national audience generally, too.”

bank gets to help participate in what shapes Fed policy. Headlines Key has drawn in recent years have also set a positive tone for the company. Key has a stable business today despite an economy-wrecking pandemic, one that some investors think may be undervalued in the stock market. That positioned Key’s latest CEO, Chris Gorman, to officially step into his new role earlier this year at a company in relatively good shape. The transition was made easier thanks to years of direction under Beth Mooney, a repeat winner of the title

of “Most Powerful Woman in Banking,” as deemed by American Banker. Understanding what makes Key a newsmaker comes down to understanding what the city would be missing without it. No Key would mean less competition for loans, mortgages, deposits and other services and gradually less focus on the region itself. In that sense, the market is worse off today than decades past by virtue of the consolidation that has played out industry-wide over the decades. But for the past 26 years, Key has been a constant in the market. And for now, at least, that’s unlikely to change.

ECONOMY

Kasich appointed Mark Kvamme, a Silicon Valley venture capitalist, to lead JobsOhio. In a telephone interview with Crain’s when he took on the post, Kvamme said he hoped the organization would offer new financing options to young companies because Ohio had a critical shortage of venture capital. “Access to capital is very difficult” for young Ohio companies, Kvamme said. “There was not that much money available.” At about the same time that Team NEO was forming, Steven Minter, president of the Cleveland Foundation, convened a meeting of foundation heads from across the region to discuss how they might play a greater role in economic development. From that meeting in 2004 came the Fund for Our Economic Future. More than 70 foundations committed $30 million over three years to frame a regional economic development agenda “that can lead to long-term economic transformation,” track overall regional progress and financially support highly promising initiatives. Since that time, the fund, led by president Bradley Whitehead until he recently stepped down, has championed efforts to get local officials to broaden their horizons and work together toward improving Northeast Ohio’s future. Most recently, in its 2018 report, “The Two Tomorrows,” the organization laid out a challenge for the next generation of civic leaders. “On a fundamental level, we are clinging to average, and average is not good enough,” the report stated. “We are not innovating and investing to the level needed to drive and sustain global competitiveness.”

From Page 14

“The key to Team NEO’s success as a driver of economic development will be our ability to go beyond traditional boundaries and thinking as we work to stimulate growth in Northeast Ohio,” Peter Burg, the chairman of FirstEnergy Corp. and a driving force behind Team NEO, told Crain’s when its first board members were announced. “This board reflects the economic and geographic diversity of our region, as well as the skill sets that we need to further identify and leverage development opportunities.” Burg died in 2004 of complications from leukemia treatment, but the organization he championed continues to this day, with even more muscle than Burg anticipated. That’s because in 2011, then-Ohio Gov. John Kasich created JobsOhio, a nonprofit that would become the leading economic development organization in the state. It was funded by the state’s liquor profits. “We are now creating an independent operation called JobsOhio, which is going to take private-sector people working aggressively to work with businesspeople to help them or to remove barriers, or to help them find financing,” Kasich told Real Clear Politics. Since then, JobsOhio has poured millions of dollars into Team NEO and five similar organizations around the state that have been able to create jobs by offering loans, grants and other incentives to businesses that choose to move to or expand in the state.

Congratulations to all the Newsmaker Award winners. Your vision and determination paved the way for businesses and leaders in Northeast Ohio.

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16 | CRAIN’S CLEVELAND BUSINESS | August 17, 2020

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CRAIN'S LIST | 100 LARGEST NORTHEAST OHIO EMPLOYERS Ranked by full-time equivalent employees in Northeast Ohio FULL-TIME EQUIVALENT EMPLOYEES RANK

ORGANIZATIONSTATE

LOCAL % CHANGE FROM 2019

WORLD

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

1

CLEVELAND CLINIC, Cleveland 216-444-2200/clevelandclinic.org

45,991 1.2%

56,592

Health care provider

Tomislav "Tom" Mihaljevic, president, CEO

2

UNIVERSITY HOSPITALS, Cleveland 216-844-1000/uhhospitals.org

22,760 0.7%

—

Health care provider

Thomas F. Zenty III, CEO

3

MINUTE MEN COS., Cleveland 216-426-9675/minutemenhr.com

21,447 1 1.5%

—

Staffing and employment services firm

Jay Lucarelli, CEO

4

GROUP MANAGEMENT SERVICES INC., Richfield 330-659-0100/groupmgmt.com

19,614 1 -9.7%

29,285 1

Staffing and employment services firm

Michael Kahoe, president

5

U.S. OFFICE OF PERSONNEL MANAGEMENT, Washington, D.C. 202-606-1800/opm.gov

15,287 2 0.2%

2,028,065 2

Federal government

Michael Rigas, director

6

WALMART, Bentonville, Arkansas 501-273-4000/walmart.com

12,345 3 —

2,200,000 4

Operator of retail supercenters, groceries and warehouse club stores

Jay Cordray, regional manager

7

PROGRESSIVE CORP., Mayfield Village 440-461-5000/progressive.com

11,942 -0%

42,567

Insurance company

S. Tricia Griffith, president, CEO

8

GIANT EAGLE INC., Bedford Heights 412-967-4551/gianteagle.com

9,070 8.5%

34,000

Multi-format food, fuel and pharmacy retailer

Brian Ferrier Sr., VP, regional retail operations

9

CUYAHOGA COUNTY, Cleveland 216-443-7220/cuyahogacounty.us

7,586 3%

7,586

County government

Armond Budish, county executive

10

STATE OF OHIO, Columbus 614-466-2000/ohio.gov

7,422 -8%

51,072

State government

Mike DeWine, governor

11

CITY OF CLEVELAND, Cleveland 216-664-2406/city.cleveland.oh.us

7,006 5 0.1%

7,006 5

Municipal government

Frank G. Jackson, mayor

12

THE METROHEALTH SYSTEM, Cleveland 216-778-7800/metrohealth.org

6,978 -0.1%

6,978

Health care provider

Akram Boutros, president, CEO

13

MERCY HEALTH, Cincinnati 513-952-5000/mercy.com

6,600 0%

—

Health care provider

Edwin M. Oley, market president, Mercy Health Lorain; John Luellen, market president, Mercy Health Youngstown

14

SUMMA HEALTH, Akron 330-375-3000/summahealth.org

6,303 4%

—

Health care provider

Cliff Deveny, president, CEO

15

CLEVELAND METROPOLITAN SCHOOL DISTRICT, Cleveland 216-838-0000/clevelandmetroschools.org

6,100 -2.5%

6,100

Public school district

Eric S. Gordon, CEO

16

AULTMAN HEALTH FOUNDATION, Canton 330-452-9911/aultman.org

5,680 2.2%

—

Health care provider

Edward J. Roth III, president, CEO

17

KEYCORP, Cleveland 216-689-6300/key.com

5,679 8.7%

17,307

Banking and financial services company

Christopher M. Gorman, chairman, president, CEO

18

AKRON CHILDREN'S HOSPITAL, Akron 330-543-1000/akronchildrens.org

5,290 4.6%

5,384

Pediatric health care provider

Grace Wakulchik, president, CEO

19

KENT STATE UNIVERSITY, Kent 330-672-3000/kent.edu

4,815 -0.2%

5,126

Public university

Todd Diacon, president

20

THE SHERWIN-WILLIAMS CO., Cleveland 216-566-2000/sherwin.com

4,627 -0.4%

53,416

Manufacturer of paint, coatings and related products

John G. Morikis, chairman, CEO

21

AMAZON, North Randall 206-266-1000/amazon.com

4,559 6 —

Online retailer

—

22

CASE WESTERN RESERVE UNIVERSITY, Cleveland 216-368-2000/case.edu

4,458 -0.3%

4,458

Private university

Barbara R. Snyder, president

23

SWAGELOK CO., Solon 440-248-4600/swagelok.com

4,276 0.1%

5,480

Manufacturer of industrial fluid system products and assemblies

Thomas F. Lozick, chairman, president, CEO

24

FIRSTENERGY CORP., Akron 800-736-3402/firstenergycorp.com

4,006 -0.5%

11,866

Electric utility holding company

Charles E. Jones Jr., CEO

25

AKRON PUBLIC SCHOOLS, Akron 330-761-1661/akronschools.com

3,583 5.6%

3,583

Public school district

David W. James, superintendent

26

FORD MOTOR CO., Brook Park 800-392-3673/ford.com

3,517 7 -0.9%

188,000 7

Automobile manufacturer

Kevin Heck, plant manager, Cleveland Engine Plant; Jason Moore, plant manager, Ohio Assembly Plant

27

HUNTINGTON NATIONAL BANK, Cleveland 800-480-2265/huntington.com

3,252 -5.7%

15,790

Banking and financial services company

Sean P. Richardson, Cleveland regional president

28

LINCOLN ELECTRIC HOLDINGS, Euclid 216-481-8100/lincolnelectric.com

2,872 -7.2%

11,000

Manufacturer of arc welding, cutting and robotic products

Christopher L. Mapes, chairman, president, CEO

29

GOODYEAR TIRE & RUBBER CO., Akron 330-796-2121/goodyear.com

2,864 2.1%

57,857

Tire manufacturer

Richard J. Kramer, chairman, president, CEO

30

SUMMIT COUNTY, Akron 330-643-2893/co.summit.oh.us

2,756 -10.7%

—

County government

Ilene Shapiro, county executive

—

NOTES: 1. This is a staffing firm; the vast majority of these employees work on behalf of other companies. 2. As of December 2019, the most recent data available. 3. Crain's estimate 4. This figure is from Walmart.com and represents total employment, not full-time equivalent employment. 5. Full time only 6. Crain's estimate for facilities in North Randall, Euclid and Twinsburg; excludes Whole Foods 7. This figure is from Ford.com and represents total employment, not full-time equivalent employment; thus, the number is higher than it otherwise would have been.

August 17, 2020 | CRAIN’S CLEVELAND BUSINESS | 17

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CRAIN'S LIST | 100 LARGEST NORTHEAST OHIO EMPLOYERS Ranked by full-time equivalent employees in Northeast Ohio FULL-TIME EQUIVALENT EMPLOYEES RANK

ORGANIZATIONSTATE

LOCAL % CHANGE FROM 2019

WORLD

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

31

DISCOUNT DRUG MART INC., Medina 330-725-2340/discount-drugmart.com

2,453 3%

—

Regional drug store chain

Don Boodjeh, CEO

32

SIGNET JEWELERS, Akron 330-668-5000/signetjewelers.com

2,419 4.4%

—

Jewelry retailer

Virginia C. Drosos, CEO

33

MEDICAL MUTUAL OF OHIO, Cleveland 216-687-7000/medmutual.com

2,358 9.8%

2,858

Health insurance company

Rick A. Chiricosta, chairman, president, CEO

34

THE LUBRIZOL CORP., Wickliffe 440-943-4200/lubrizol.com

2,162 -1.5%

8,598

Specialty chemical company

Eric R. Schnur, chairman, president, CEO

35

GANLEY AUTO GROUP, Brecksville 440-584-8202/ganleyauto.com

2,147 16.8%

—

Auto dealership group

Kenneth G. Ganley, president, CEO

36

HYLAND, Westlake 440-788-4988/hyland.com

2,124 5.1%

3,629

Content services software developer

Bill Priemer, president, CEO

37

LAKE HEALTH, Concord Township 440-375-8100/lakehealth.org

2,117 -5.4%

2,117

Health care provider

Cynthia Moore-Hardy, president, CEO

38

MERCY MEDICAL CENTER, Canton 330-489-1000/cantonmercy.org

2,094 -1.9%

—

Health care provider

Thomas J. Strauss, interim CEO

39

GREATER CLEVELAND RTA, Cleveland 216-621-9500/riderta.com

2,079 7.8%

—

Public transit agency

India Birdsong, general manager, CEO

40

THE J.M. SMUCKER CO., Orrville 330-682-3000/jmsmucker.com

2,013 -7.4%

7,395

Packaged food, coffee and pet food manufacturer

Mark T. Smucker, president, CEO

41

ARCELORMITTAL, Cleveland 216-429-6000/usa.arcelormittal.com

2,002 -4.4%

—

Steel manufacturer

Mike Madar, VP, general manager

42

SCHAEFFLER GROUP USA, Wooster 330-264-4383/schaeffler.us

2,000 0%

—

Manufacturer of transmission system components, electric mobility products

Marc L. McGrath, CEO, Americas

43

TIMKENSTEEL CORP., Canton 330-471-7000/timkensteel.com

1,988 -23.1%

2,141

Customized alloy steel products and services provider

Terry L. Dunlap, interim president and CEO

44

STERIS, Mentor 440-354-2600/steris.com

1,937 3.5%

13,000

Provider of sterilization and procedural products/services to the health care industry

Walter M. Rosebrough Jr., president, CEO

45

UNIVERSITY OF AKRON, Akron 330-972-7111/uakron.edu

1,922 -2.1%

—

Public university

Gary L. Miller, president

46

SOUTHWEST GENERAL, Middleburg Heights 440-816-8000/swgeneral.com

1,896 0%

1,897

Health care provider

William A. Young Jr., president, CEO

47

ROCKWELL AUTOMATION INC., Mayfield Heights 440-646-5000/rockwellautomation.com

1,880 -3.2%

23,000

Provider of industrial automation control and information solutions

Frank Kulaszewicz, senior VP, Control Products & Solutions

48

HOWMET AEROSPACE (FORMERLY ARCONIC INC.), Cleveland 1 216-641-3600/howmet.com

1,857 -29.1%

—

Engineered metal manufacturing company for aerospace and transportation

Merrick Murphy, president, Howmet Structure and Wheel Systems; Randall Scheps, president, Howmet Wheel Systems

49

CITY OF AKRON, Akron 330-375-2316/akronohio.gov

1,826 1.8%

1,826

Municipal government

Daniel Horrigan, mayor

50

PARKER HANNIFIN CORP., Mayfield Heights 216-896-3000/parker.com

1,800 0%

50,520

Provider of fluid power systems and electromechanical controls

Thomas L. Williams, chairman, CEO

51

GOJO INDUSTRIES INC., Akron 330-255-6000/gojo.com

1,768 2.5%

2,332

Manufacturer of skin health and hygiene products

Carey Jaros, president, CEO; Marcella Kanfer Rolnick, executive chair

52

HEINEN'S INC., Warrensville Heights 216-475-2300/heinens.com

1,682 —

—

Grocery store chain

Jeffrey Heinen; Tom Heinen, co-presidents

53

WESTFIELD, Westfield Center 330-887-0101/westfieldinsurance.com

1,676 -4.1%

2,334

Insurance, banking and financial services company

Edward Largent, president, CEO, board chair

54

DOMINION ENERGY OHIO, Cleveland 800-362-7557/dominionenergy.com

1,538 0.4%

—

Natural gas distributor

Jim E. Eck, VP, GM, Ohio & West Virginia Distribution

55

JO-ANN STORES LLC, Hudson 330-656-2600/joann.com

1,500 0%

—

Craft and fabric retailer

Wade Miquelon, president, CEO

56

PPG, Cleveland 412-434-3131/ppg.com

1,489 —

47,000

Paint, coatings and specialty materials company

James Priddy, plant manager

57

CLEVELAND STATE UNIVERSITY, Cleveland 216-687-2000/csuohio.edu

1,462 -2.3%

—

Public university

Harlan M. Sands, president

58

AVERY DENNISON, Mentor 440-534-6000/averydennison.com

1,452 -8.2%

—

Materials science company specializing in labeling/functional materials

Jeroen Diderich, VP and GM, Label and Graphic Materials North America

59

LAKE COUNTY, Painesville 440-350-2745/lakecountyohio.org

1,443 -1.5%

1,443

County government

Ron Young; Jerry Cirino; John Hamercheck, commissioners

60

CUYAHOGA COMMUNITY COLLEGE, Cleveland 216-987-6000/tri-c.edu

1,422 -1%

1,422

Community college

Alex Johnson, president

61

EATON, Beachwood 440-523-5000/eaton.com

1,400 -1%

93,000

Manufacturer of electrical, aerospace, hydraulic and vehicle products

Craig Arnold, chairman, CEO

NOTES: 1. Arconic Inc. split into two companies, Arconic Corp. and Howmet, on April 1, 2020. 18 | CRAIN’S CLEVELAND BUSINESS | August 17, 2020

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FULL-TIME EQUIVALENT EMPLOYEES RANK

ORGANIZATIONSTATE

LOCAL % CHANGE FROM 2019

WORLD

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

Diversified manufacturer

Bob McBride, president, CEO

Tire manufacturer

Nizar Trigui, chief technology officer, Bridgestone Americas; VP, Bridgestone Corp.

62

THE SCOTT FETZER CO., Westlake 440-892-3000/scottfetzer.com

1,354 2%

2,159

63

BRIDGESTONE AMERICAS INC., Akron 330-379-7000/bridgestoneamericas.com

1,320 0%

—

64

CHARLES RIVER LABORATORIES, Ashland 419-289-8700/criver.com

1,306 3.4%

16,482

Contract research organization

Andy Vick, corporate VP, regional general manager

65

YRC WORLDWIDE INC., Akron 800-610-6500/yrcw.com

1,274 4.9%

30,000

Less than truckload freight transportation provider

Scott McCormick, distribution center manager, YRC Freight

66

UNITEDHEALTHCARE, Cleveland 800-468-5001/uhc.com

1,250 25%

325,000

Health insurance provider

Neal Grode, executive director, Northern Ohio

67

BWX TECHNOLOGIES INC., Euclid 216-912-3000/bwxt.com

1,240 6.9%

—

Pressure vessels, steam generators and electro-mechanical parts provider

Dave Broussard, GM, BWXT Nuclear Operations Group Barberton; Chris Rhodes, GM, BWXT Nuclear Operations Group Euclid

68

SHEARER'S FOODS LLC, Massillon 330-834-4030/shearers.com

1,185 -2.1%

4,470

Manufacturer of snack foods

Bill Nictakis, chairman, CEO

69

SPRENGER HEALTH CARE SYSTEMS, Lorain 440-989-5200/sprengerhealthcare.com

1,180 1 -3.3%

—

Senior housing and care continuum services provider

Nicole Sprenger, CEO; Michael Sprenger, COO

70

DIEBOLD NIXDORF INC., North Canton 330-490-4000/dieboldnixdorf.com

1,170 -14.2%

22,000

Financial, retail self-service technology and services provider

Gerrard B. Schmid, president, CEO

71

JPMORGAN CHASE & CO., Cleveland 800-935-9935/chase.com

1,084 —

250,000

Banking and financial services company

Rudy Bentlage, executive director, commercial banking and market executive, Northeast Ohio

72

YOUNGSTOWN STATE UNIVERSITY, Youngstown 330-941-3000/ysu.edu

1,065 0%

1,065

Public university

James Tressel, president

73

INFOCISION, Akron 330-668-1400/infocision.com

1,046 -5.8%

2,636

Telemarketing/direct marketing firm

Craig Taylor, CEO; Karen Taylor, board chair

74

MEDINA COUNTY, Medina 330-723-3641/medinaco.org

1,028 0.4%

—

County government

Patricia G. Geissman; Colleen M. Swedyk; William Hutson, commissioners

75

ASSOCIATED MATERIALS INC., Cuyahoga Falls 330-929-1811/associatedmaterials.com

1,021 0%

—

Manufacturer of exterior building products

Brian C. Strauss, president, CEO

76

THE TIMKEN CO., North Canton 234-262-3000/timken.com

1,014 -7.9%

18,000

Manufacturer of engineered bearings and mechanical power transmission products

Richard G. Kyle, president, CEO

77

MEIJER, Grand Rapids, Michigan 877-363-4537/meijer.com

1,000 2 —

—

Retail supercenter chain operator

Tom Wilson, regional vice president

77

SPITZER MANAGEMENT INC., Elyria 440-323-4671/spitzer.com

1,000 1 —

—

Automotive retail, real estate development, golf course and marina management

Alan Spitzer, chairman, CEO

77

UNITED AIRLINES HOLDINGS INC., Cleveland 216-501-5170/united.com

1,000 —

—

Airline

Drew Domitrovits, general manager

80

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

994 -6.4%

14,155

Provider of specialty coatings, sealants and building materials

Frank C. Sullivan, chairman, president, CEO

81

GENERAL MOTORS CO., Parma 216-265-5000/gm.com

978 -9.1%

—

Automobile manufacturer

Mark L. Pervine, Parma plant director

82

PORTAGE COUNTY, Ravenna 330-297-3600/co.portage.oh.us

973 0.4%

973

County government

Kathleen Clyde; Vicki A. Kline; Sabrina Christian-Bennett, commissioners

83

NORDSON CORP., Westlake 440-892-1580/nordson.com

964 2.8%

7,557

Industrial technology manufacturer

Sundaram Nagarajan, president, CEO

84

OBERLIN COLLEGE, Oberlin 440-775-8460/oberlin.edu

957 -4.9%

—

Private college

Carmen Ambar, president

85

ENERGY HARBOR, Akron 888-254-6359/energyharbor.com

924 —

2,540

Power producer and retail energy provider

John W. Judge, president, CEO

85

SAINT-GOBAIN CORP., Solon 440-836-6900/saint-gobain-northamerica.com

924 -12.5%

—

Building materials company

Jean Angus, CEO, life sciences

87

DAVE'S SUPERMARKETS, Bedford Heights 216-763-3200/davesmarkets.com

884 2.9%

933

Supermarket operator

Daniel Saltzman, president

88

MGM NORTHFIELD PARK, Northfield 330-908-7625/mgmnorthfieldpark.com

878 -10.4%

80,000

Gaming, dining and entertainment destination

Matt Buckley, senior VP, marketing and operations

88

NOMS HEALTHCARE, Sandusky 419-626-6161/nomshealthcare.com

878 -1.3%

—

Independent multi-specialty physician group

Joshua G. Frederick, CEO

90

SHAKER HEIGHTS CITY SCHOOL DISTRICT, Shaker Heights 216-295-1400/shaker.org

847 1.2%

847

Public school district

David Glasner, superintendent

91

ST. VINCENT CHARITY MEDICAL CENTER, Cleveland 216-861-6200/stvincentcharity.com

835 -3%

835

Health care provider

Janice G. Murphy, president, CEO

92

THIRD FEDERAL SAVINGS & LOAN, Cleveland 800-844-7333/thirdfederal.com

825 -6.6%

998

Savings and loan

Marc A. Stefanski, chairman, president, CEO

NOTES: 1. As of March 1 2. Crain's estimate

August 17, 2020 | CRAIN’S CLEVELAND BUSINESS | 19

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CRAIN'S LIST | 100 LARGEST NORTHEAST OHIO EMPLOYERS Ranked by full-time equivalent employees in Northeast Ohio FULL-TIME EQUIVALENT EMPLOYEES RANK

LOCAL % CHANGE FROM 2019

ORGANIZATIONSTATE

WORLD

TYPE OF BUSINESS

TOP LOCAL EXECUTIVE

797

Health care provider

Robert A. Kent, president, CEO

795 1

Senior community providing a continuum of care

Jim Newbrough, president, CEO

93

WESTERN RESERVE HOSPITAL, Cuyahoga Falls 330-971-7000/westernreservehospital.org

94

MENORAH PARK, Beachwood 216-831-6500/menorahpark.org

95

MEDINA CITY SCHOOLS, Medina 330-725-8831/medinabees.org

778 0.5%

778

Public school district

Aaron Sable, superintendent

96

NORTHEAST OHIO REGIONAL SEWER DISTRICT, Cleveland 216-881-6600/neorsd.org

758 -2.8%

758

Wastewater and stormwater management utility serving 62 communities

Kyle Dreyfuss-Wells, CEO

97

HOSPICE OF THE WESTERN RESERVE INC., Cleveland 800-707-8922/hospicewr.org

740 -8.3%

—

Hospice and palliative care organization

William E. Finn, president, CEO

98

GREAT LAKES CHEESE, Hiram 440-834-2500/greatlakescheese.com

739 7.3%

3,188

Packager and manufacturer of natural and processed cheese

Dan Zagzebski, president, CEO

99

LAKEWOOD CITY SCHOOL DISTRICT, Lakewood 216-529-4000/lakewoodcityschools.org

730 -2.5%

730

Public school district

Michael J. Barnes, superintendent

STEP2 DISCOVERY, Streetsboro 330-656-0440/step2.com

724 -11.2%

1,000

Manufacturer of toys; rotational molder of plastics

Anthony M. Ciepiel, CEO

100

797 2.3% 795 1 -13.6%

Researched by Chuck Soder: csoder@crain.com | Information is supplied by the employers unless otherwise noted. Listed cities in most cases represent the location of the organization's primary local office, though a few organizations headquartered elsewhere list cities outside Northeast Ohio. NOTES: 1. Does not include Montefiore, which merged with Menorah Park on July 1.

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THE FUTURE OF WORK THE ECONOMIC VALUE OF FOREIGN EMPLOYEES, IMMIGRANTS The COVID-19 pandemic dramatically has impacted the ability of foreign nationals to travel to the U.S. Foreign workers supply reinforcement in the U.S. labor market, particularly in the STEM (Science, Technology, Engineering and Math) fields.

COLLECTIVE RESPONSE Citing threats due to rising domestic unemployment rates, U.S. President Donald Trump on June 22 signed an executive order restricting foreign nationals from outside the U.S. from using certain temporary employment-based visas through the end of the year, as well as extending a green card ban from April through Dec. 31. “The entry of additional workers through the H-1B, H-2B, J, and L nonimmigrant visa programs, therefore, presents a significant threat to employment opportunities for Americans affected by the extraordinary economic disruptions caused by the COVID-19 outbreak,” according to a statement issued that day by the White House. Organizations such as the Society for Human Resource Management and the U.S. Chamber of Commerce were disappointed, saying the restrictions could hinder essential recruiting and hiring and hamper business growth.

COMPLEMENTARY CONTRIBUTIONS H-1B workers are integral to expanding the U.S. knowledgebased innovation economy. Research conducted by the American Immigration Council shows that unemployment rates between 2014 to 2019 were low for occupations that use large numbers of H-1B visa workers. The research also indicates that an increase in H-1B visas could create an estimated 1.3 million new jobs and add about $158 billion to gross domestic product in the U.S. by 2045.

SOURCES: American Immigration Council, Society for Human Resource Management, U.S. Department of State

THE VALUE OF IMMIGRANTS IN OHIO About 5% of Ohio residents are immigrants, while another 5% of residents are native-born and have at least one immigrant parent. Ohio’s immigrant population is active in the economy: one out of seven Ohioans working in computer sciences is an immigrant. Immigrants account for one out of eight workers in life, physical and social sciences. Immigrants in Ohio tend to be college-educated. About 42% of adult immigrants in 2018 had a college degree or higher, while 17% had less than a high school diploma.

TIP OF THE CAP The H-1B visa is the most commonly sought visa for professional workers. The annual cap for H-1B visas falls short of the current demand for high-skilled workers. Between FY 2008 to FY 2020, the annual H-1B cap was reached within the first five business days during eight separate occasions.

Compiled by Kathy Ames Carr, Crain’s Content Studio-Cleveland

Retaining foreign employees in the age of immigration bans WERONIKA K. COSTAS The Costas Network Law Center LLC weronika@costas-network.com 216-577-7612 Weronika K. Costas is the founder and principal attorney of The Costas Network Law Center LLC. While her firm is based in the Greater Cleveland area, she represents clients before immigration courts, U.S. Citizenship and Immigration Services and asylum offices across the United States.

“What does this new suspension mean for us,” a corporate client emailed me in June. The email, filled with apprehension, came shortly after June 22 when President Trump issued Proclamation 10052, titled “Proclamation Suspending Entry of Aliens Who Present a Risk to the U.S. Labor Market Following the Coronavirus Outbreak.” Making the unsubstantiated claim that “admission of workers within several nonimmigrant visa categories … poses a risk of displacing and disadvantaging (U.S.) workers during the current (economic) recovery,” the proclamation suspended the entry into the U.S. of most foreigners coming in on immigrant visas (colloquially known as green cards). It also affected those seeking to enter on certain work visas:

• H-1B visa (specialty occupation) • H-2B visa (guest worker/seasonal worker) • J visa (intern, trainee, teacher, camp counselor, au pair, summer work travel program) • L visa (executive, manager or employee with specialized knowledge intracompany transferee). The suspension is effective through Dec. 31, but it might be extended further. The client, a landscaping and groundskeeping company with nearly 100 employees, had reason to worry after hearing of the proclamation. For years, the company has supplemented its workforce during its peak season with foreign

workers through the H-2B seasonal guest worker program. Actually, getting H-2B visas is difficult in itself, due in part to the relatively small number of these visas made available each year (66,000 total). Due to this, the company also has started the green card sponsorship process for a number of its most valuable employees. The benefit of a green card sponsorship is that, while it does take substantially longer, the employer does it just once, after which the beneficiary employee is able to remain in the U.S. on a permanent basis with work authorization. When the proclamation was issued, the client had approximately 20 workers abroad -- some waiting for their H-2B visas, others well into their immigrant visa/ green card application process. Unfortunately, now these workers are barred from entering the U.S. for the rest of this year, leaving their U.S. employer shortstaffed and struggling to meet customer demands.

Nor does it bar foreign workers already in the U.S. from applying to change from one visa status to another. With the current entry restriction on foreign workers, and the possibility of it being extended well into 2021 as the pandemic continues, employers wishing to retain foreign talent may need to look beyond the “typical” path they take with foreign employees. For those employing H-1B or H-2B employees, investing into the Adjustment of Status process early while the employees still are in the U.S. may be the answer. For others, it may mean the employees having to transfer to a different position or even to a different employer temporarily in order to change visa categories and remain in the U.S. to avoid facing a re-entry ban. Training and retaining foreign employees is an investment, and it brings talent and much-needed skills to our labor force. Notwithstanding the current restrictions on work visa entries, there are still options available to not let this investment go to waste.

Notably, Proclamation 10052 only restricts the entry of foreign workers into the U.S. It does not bar foreign workers who already are in the U.S. from applying for green cards from within the U.S. through a process called Adjustment of Status.

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

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THOUGHT LEADER FORUM

THE FUTURE OF WORK NOW’S THE TIME TO UPSKILL YOUR WORKFORCE The McKinsey Global Institute in 2017 estimated that 14% of the global workforce would need to switch occupations or acquire new skills by 2030 because of automation and artificial intelligence. Before the onset of the COVID-10 pandemic, a McKinsey Global study revealed that 87% of respondents said they were experiencing skills gaps or were expecting them in the coming years. Fewer than half of respondents knew how they were going to address this challenge. The World Economic Forum, meanwhile, estimates that by 2022, 54% of all employees will require significant upskilling.

INCENTIVE FOR OHIO EMPLOYERS SKILLS THAT CAN SEAL THE DEAL The OhioMeansJobs Readiness Seal is a formal designation a student can earn by demonstrating 15 professional skills that Ohio businesses deem as required for workplace success. Those skills include: a commitment to being drug-free, reliability, strong work ethic, punctuality, discipline, desire to collaborate, professionalism, learning agility, critical thinking, leadership, creativity, oral and written communication, command of digital technology, global/ intercultural fluency and a self-advocate for career management.

Ohio’s TechCred Program offers employers an incentive for upskilling current and future employees. Any Ohio-registered employer that employs Ohio resident W-2 employees is eligible to apply. Employers who submit successful applications will be reimbursed up to $2,000 per credential when current or prospective employees complete technology-focused credentials, according to program guidelines as of August 2020. For more information, visit techcred.ohio.gov/wps/portal/gov/techcred/home.

STEP UP McKinsey and Co. suggests six steps for upskilling: • Quickly identify the skills your organization will require in your business model post-recovery. • Focus on developing four kinds of skills: digital, higher cognitive, social and emotional, and adapatability and resilience. • Re-create in-person learning through live video sessions or social sharing tools to address training needs and skills gaps. • Start reskilling now. • Act like a small company to have a big impact. • Protect employee training budgets.

SOURCES: Deloitte, McKinsey & Co., Ohio Department of Education, Ohio’s TechCred Program, World Economic Forum

THE POWER OF AI In the past two years, the amount of data in the world has catapulted 900%, fueling powerful machine-learning tools. Meanwhile, the cost of AI, cognitive computing and robotics has decreased over the past decade. What cost $500,000 in 2008 is now just $22,000. Harness the power of AI in your upskilling strategic plan.

Compiled by Kathy Ames Carr, Crain’s Content Studio-Cleveland

Where exactly is the real skills gap in the age of COVID-19? DR. TERRENCE S. ROBINSON Success Pathways Alliance terrence@successpathways.org 440-290-9121 Dr. Terrence S. Robinson is vice president, workforce systems design at Success Pathways Alliance, an organization dedicated to re-engineering the talent ecosystem. As the economy has begun to reopen and businesses are operating under the new normal, undoubtedly you have heard the terms reskilling and/or upskilling as being the biggest opportunity for business to prepare their workforce for the future. With many businesses being forced to switch to a virtual work environment, COVID-19 pointed a spotlight on the digital skills gap and thus digital skills have become the skill set synonymous with reskilling and/or upskilling. However, if workforce training providers focus solely on providing jobseekers with digital skills and credentials, they will have missed the real opportunity to close the skills gap. Reskilling and upskilling workers to expand their digital skill set makes sense, after all COVID-19 has forced communities to address the digital divide, increased the number of employees working in a virtual environment,

and has shown the need for becoming a more digitally literate society. Unfortunately, the challenge with trying to address the digital skills gap is that it is inexact to generalize which digital competencies or credentials are necessary for jobseekers or the underemployed to obtain. According to the author Ryan Craig, in his March 2019 white paper titled “America’s Skills Gap: Why It’s Real, And Why It Matters,” the “digital skills gap actually consists of thousands of micro-level or tactical digital skills gaps … employers are seeking skills like Pardot (marketing), Marketo (digital marketing), Google Adwords (digital marketing), ZenDesk Plus (customer service), NetSuite (finance), Financial Force (finance), Workday (HR) and the customer relationship management (CRM) platform, Salesforce … every industry has its own SaaS platforms for specific functions.”

Once you deep dive into what it would really take to close the digital skills gap, you begin to understand the complicated challenge facing workforce development practitioners in reskilling/upskilling to address the digital skills gap. Therefore, workforce development practitioners must focus on job seekers and the underemployed when developing or enhancing their essential skills. The coronavirus pandemic birthed the term “essential workers,” this term was used to describe those men and women whose jobs were deemed so critical to the infrastructure of the economy that they were asked to continue to work, while the rest of the state was asked to quarantine. In a similar fashion, COVID-19 has increased the need to focus on developing and enhancing essential skills (or soft/professional skills). The No. 1 skill set that a person needed during the onset of the COVID-19 quarantine was their ability to be agile or show adaptability to a changing environment. Adaptability and agility is an essential skill, not a technical skill! Far too often essential skills are minimized because many workforce practitioners (and educators) believe that these skills are only needed for entry level job seekers and fail to understand that throughout a person’s career they will constantly use their essential skills. Most employers will tell you that having a

technical skill may get a person an interview and even a job, but it is their ability to work in a team environment, critically think, problem solve and show leadership that will help that person keep the job and advance their career. As the economy continues its recovery, many states are focusing on the competencies, credentials and skills necessary for their workforce in this “new normal.” These states are seeking to identify skills (both soft and technical) or competencies that are valued across their in-demand industry sectors. In Ohio, this work was done back in 2017 through the Ohio Governor’s Office of Workforce Transformation (OWT). The OWT in collaboration with the Ohio Department of Education and OhioMeansJobs identified 15 essential (professional) skills that demonstrated a person’s career readiness and workforce preparedness. These 15 essential skills were vetted and endorsed by both employers and educators and are collectively known as the OhioMeansJobs Readiness Seal. As workforce practitioners, educators and institutions of higher education move rapidly to reskill/upskill jobseekers, they should also incorporate the OhioMeansJobs Readiness Seal 15 essential skills into their training and development.

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

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SPONSORED CONTENT

August 17, 2020

S3

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THOUGHT LEADER FORUM

THE FUTURE OF WORK THE SKY’S THE LIMIT It’s no wonder the term “cloud computing” was designated to describe the vast, external delivery of computer services beyond the realm of hardware, software and onsite data services. Cloud computing frees up cumbersome and costly data storage challenges by enabling servers, storage, databases, networking, software, analytics and intelligence to be delivered over the internet or “cloud.” There are three ways to engage cloud services: public cloud, private cloud or hybrid clouds.

PUBLIC, PRIVATE AND HYBRID SECURITY RISKS Despite the benefits of cloud computing, security still remains a challenge, according to a Statista global survey of technical executives, managers and practitioners of cloud technologies. Eighty-three percent of respondents said security was either a significant challenge or somewhat of a challenge. Other challenges include managing cloud spend, governance and a lack of resources or expertise.

A public cloud is owned and operated by a third-party cloud service provider and uses a virtual machine to provide computing resources, such as processing power, memory and storage to clients. A private cloud uses cloud computing services only for a single company or organization. Hybrid cloud technology enables the integration of both public and private cloud computing services.

PUBLIC BENEFITS Public cloud computing services afford organizations the opportunity to reduce IT costs and increase technology flexibility and scalability.

Compiled by Kathy Ames Carr, Crain’s Content Studio-Cleveland

CLOUD USE BUILDS The COVID-19 pandemic has accelerated the momentum behind cloud investment and data migration. Cloud spend has increased by nearly 50% in 2020, and optimizing cloud use remains a top priority for companies for the fourth year in a row, according to respondents of the 2020 State of the Cloud Report conducted by Flexera, an Illinois-based software company. A majority of enterprises expect to increase cloud usage due to COVID-19. Meanwhile, organizations have exceeded their cloud spend by an average of 23% and expect cloud spend to increase by 47% in 2021.

MARKET SIZE GROWTH The global public cloud market size was valued at $211.5 billion in 2019 and is expected to continue a healthy compound annual growth rate of about 14.6% between 2020 and 2027. The primary drivers of this market growth include the continual digital transformation among industries, the ubiquitous use of mobile devices and the internet, and the proliferation of big data consumption.

SOURCES: Flexera’s “Cloud Computing Trends: State of the Cloud 2020,” Grand View Research, Statista

Achieve cloud success with a community of excellence NICK COLYER AHEAD Nick.Colyer@thinkahead.com Nick Colyer helps enterprises access the value of cloud technologies through education and strategic solutions. His expertise includes developing cloud adoption frameworks, assisting enterprises in transitioning to the public cloud, DevOps and automation approaches to drive cost savings and efficiency. Headquartered in Chicago, AHEAD has regional offices across the U.S., including in Northeast Ohio.

Technology drives the future of work and public cloud is one of the most popular ways to get there. However, cloud success requires not only a shift in technology, but also in people and processes. To truly unlock the value of public cloud, organizations know they must modernize operations and break down silos. Many get there by establishing a Cloud Center of Excellence, but there is a deeper approach that reaches every corner of the business — a Cloud Community of Excellence. The distinction may seem small, but it’s infinitely important. The center approach

transformation project like a transition to public cloud. A community focus, on the other hand, may begin as a smaller tiger team, but is designed to expand, diffusing information, skills and best practices throughout the organization. This can only happen if the community first acts as a sponge, understanding the needs of each business unit and building them into the cloud strategy. A well-designed community provides value back to its business in three key areas: culture, cost savings and security.

A good cloud community understands the organization’s security needs and ensures they are met with well-designed processes and the right tools.

CULTURE SHIFTS Cloud success is only achieved through cloud adoption, and cloud adoption is driven by cultural change. A collaborative, supportive community encourages learning and provides consumable resources that educate and enable the organization.

inadvertently creates an environment of “haves and have nots” by sticking too narrowly to only roles at the top of the org chart. This results in a concentration of strategy input, skills, processes and knowledge within a small, insulated group — leaving the rest of the organization to guess at how to effectively use the cloud. This is exactly the opposite approach required when it comes to a digital

REDUCED COSTS Greater control of spend is one of the top reasons that businesses move to the public cloud. But a failed cloud adoption can have costs greater than the expected savings. The community’s greatest responsibility is to ensure overall success, including the cross-sharing of ideas, modern architectures and assistance with the enterprise architecture

team’s establishment of a roadmap and strategy. All these steps are critical to cloud success and help reduce costs in the long run. STRONGER SECURITY Security is everyone’s responsibility. A good cloud community understands the organization’s security needs and ensures they are met with well-designed processes and the right tools. They work to educate each employee on appropriate cloud usage and how to not only establish, but also maintain, a secure cloud environment. Remember that when building this community, skills and education are at its heart. Fuel your community of excellence by leveraging existing domain experts to educate others and implement best practices across their specialties. Training plans and education keep the cloud adoption wheel turning, give IT teams confidence, and help guide the rest of your organization toward getting the most from the cloud.

thinkahead.com

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

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AKRON REAL ESTATE

Akron puts 45 acres of scenic Merriman Valley up for sale City hopes to attract homebuilders to develop land, but some want more thoughtful planning “I THINK THERE ARE PEOPLE WITHIN THE CITY ... THAT ARE LOOKING FOR THE RIGHT KIND OF DEVELOPMENT. BUT THE TRUST COULD BE GREATER IF THERE WAS A COMPREHENSIVE PLAN ON THE PART OF CUYAHOGA FALLS AND AKRON, SO WE’LL HAVE SOMETHING WE’LL BE PROUD OF IN 50 YEARS … LIKE THE NATIONAL PARK AND BLOSSOM.”

BBY DAN SHINGLER

Akron is putting some of its most prime real estate up for sale — 45 acres in the scenic Merriman Valley that’s a largely forested tract just a stone’s throw from Cuyahoga Valley National Park. The city hopes it can attract one or more homebuilders to buy and develop the land. But proponents of the valley say they want a planned development that will enhance the area and not suburban sprawl. “We’re looking for statements of interest from qualified housing developers to see what their general site plan would be,” Akron Planning and Urban Development Director Jason Segedy said. “Hopefully we’ll get a number of them so we can compare and contrast them with one another. We’re looking for an innovative development proposal that will best utilize the site … and we’re selling the land, so we’re also looking for the best price we can get.” The city put out a request for proposals from potential developers on Aug. 3 for the site, which is bordered on the north and west by Theiss Road, on the east by Northampton Road and by Hardy Road to the south. Officials hope Akron’s 15-year tax abatement on residential development helps, but they have also put in place requirements developers must meet, including that 30% of the site be maintained as “green space.” Proposals are due Sept. 10 and will be reviewed by the city’s Office of Integrated Development, which will make its recommendation to Mayor Dan Horrigan, the Akron City Planning Commission and Akron City Council, the city reported. “The right developer will be able to create an attractive, new residential

——Dallas Aleman, owner of Towpath Tennis Center in the valley

development on this property that complements the surrounding land uses and takes advantage of the unique parklike setting,” said James Hardy, deputy mayor for integrated development, in announcing the RFP. The effort, like the abatement, is part of Horrigan’s plan to rebuild Akron’s population via new housing across the city. That’s well and good, say some who work in and represent the Merriman Valley — as long as thoughtful planning dictates the city’s decision making. Dallas Aleman, who owns and has run the Towpath Tennis Center in the valley for more than 50 years, said the city should look to things like the national park and nearby Blossom Music Center for cues. He said he trusts officials like Segedy, but would like to see more planning, including collaboration with neighborhood residents and businesses — and with Cuyahoga

Falls, which also borders the valley and uses it for access to the national park, other nearby parks and the Towpath Trail. “I think there are people within the city, and Jason is probably one, that are looking for the right kind of development. But the trust could be greater if there was a comprehensive plan on the part of Cuyahoga Falls and Akron, so we’ll have something we’ll be proud of in 50 years … like the national park and Blossom,” Aleman said. Aleman said housing would probably help his business over the short term but suggested other things could be built to complement the park and existing neighborhood. “I’ve got mixed feelings. It’s good in the sense that it brings more customers to me, but it’s bad in the sense that we need more planning,” he said. “The valley is becoming a destination, with a lot of other people coming here to recreate. … So maybe

it needs things like a winery, or bed and breakfasts, versus just another bedroom community.” His call for good planning is echoed by Akron Ward 8 City Councilman Shammas Malik, who represents much of the valley and would have a say in the matter if council is asked to vote on a sale of the land. “There’s nothing in (the RFP) that strikes me as totally out of line, but we’ll have to see what proposals come in and also what happens elsewhere in the valley, both in Akron and Cuyahoga Falls,” Malik said. “We all want to grow the population. How we do it has to be thought about carefully. The Merriman Valley is shared by Akron and Cuyahoga Falls, so the development has to be done in concert. One of the things we’ve talked about over the last year was having a joint, valley planning committee.” Segedy said the city is sensitive to the fact that the valley is a special place and wants to keep it that way. He said he also agrees that planning and collaboration are needed, but that more is already underway than most realize. “The planning is important, and we are absolutely talking to Cuyahoga Falls” about the valley, Segedy said. “We probably will be engaging in a more coordinated planning effort, probably involving a consulting firm to do a more strategic plan for the entire area,” he added. But Akron is competing with other, outlying areas offering desirable greenfield sites. “In a perfect world, the city — and I think we are and have done this — would prioritize more development in the core of the city. … But residential development around the county is pretty competitive, and there are other places, like Green, Stow or Bath, that are going to offer places like this,

too. … (Marketing the valley site) does give us the ability to compete for that type of buyer,” Segedy said. But, he promised, the city will not entertain offers that would adversely affect the Cuyahoga River’s watershed, or lack other environmental protections. “Just because Party A offers more than Party B, we might go with the developer offering slightly less money if we think they have a better plan. We wouldn’t have to go with the highest bidder,” Segedy said. But the land is desirable and the city’s not asking much for it. Segedy said the city will consider bids above $300,000 for the entire site — or about $6,667 per acre. “That’s a farmer’s price,” said Jerry Fiume, managing director of SVN Summit Commercial Real Estate in Fairlawn, noting that farmland in the area often sells for around that price. In the current economy, it’s tough to judge how much appetite big homebuilders have for such sites, which sell for less money because developers have to put in things like water and sewer lines, as Akron is asking bidders to do in the valley. But Fiume said it’s a location with a lot of potential for homebuilders. Like Segedy, Aleman and Malik, he thinks the valley needs development to give it an economic boost. Fiume thinks residential development is the best use of the land. “The whole valley has to go through a transformation, I think, and residential is the key. … The highest and best use for the valley is, for me, residential and neighborhood support services. It’s not industrial buildings, and it’s not office buildings,” Fiume said. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

TECHNOLOGY

LoveSync brings couples romance into high-tech era

Creators of intimacy app featured on ‘Shark Tank’ are getting help from Bounce Innovation Hub BBY KAREN FARKAS

Do you want to know if your partner shares your desire to be amorous? There’s an app — or a button — for that. LoveSync, created by Ryan and Jenn Cmich, is a sex and intimacy communication app for couples that recently launched on Apple and Android. It’s bedroom talk for the high-tech era: A person lets a partner know he or she is in the mood for sex by tapping a button on a smartphone. If the partner also taps their button, both are notified. The notification only occurs if both are interested in intimacy. Since the free app launched in May, it has been downloaded more than 4,500 times. For those who don’t want the app on their phone, they can buy two sleek buttons, which can be plugged into outlets at either side of a bed and used to signal amorous intent. The Cmichs, who have invested $100,000 in LoveSync since developing the product three years ago, are pas-

The couple, encouraged by the downloads and button sales, plan to expand the app. “There has always been enough interest in this to keep us going,” Jenn said.

The idea for an app

Ryan and Jenn Cmich invented LoveSync, an app and button that couples can use to indicate to each other that they’re in the mood for romance. The couple is working with an adviser at the Bounce Innovation Hub on accelerating their business. | CONTRIBUTED

sionate about it and have persevered despite facing taunting and criticism on social media for creating a “Sex Button” and being grilled and rejected by the investors on “Shark Tank.”

“It’s been hard for me, but in the end it gets people talking,” Jenn said. “It is a decent opportunity to get our perspective out there that this is a new idea and not shocking.”

The couple met in high school and married in 2002. They live in Medina County and have two children. Ryan said he came up with the idea in 2017 after lying in bed one weekday night and unsure about asking his wife, who had had a stressful day, if she wanted to have sex. He didn’t ask but began to think of creating a way to communicate in a way without facing rejection. “I Googled it and did patent searches and was shocked that no one had invented it,” he said about a communication app. The couple’s expertise in their careers helped launch LoveSync, which they have trademarked and patented. Ryan is chief product engineer at MTD Products in Valley City and has invented several products for the

lawn and garden products company. He has a mechanical engineering degree from the University of Akron. Jenn has a marketing degree from the University of Akron and is operations manager at the Avenues of Counseling and Mediation in Fairlawn. Ryan created the basic prototype for the two buttons, which sell for about $72, in the winter of 2017. After development and testing, they launched a Kickstarter campaign in February 2019. Their goal of $7,500 was exceeded as 442 backers pledged a total of $21,600.

Pitching on ‘Shark Tank’ Shortly after launching the Kickstarter campaign, which included a clever video, a producer from “Shark Tank,” a pitch competition show, called. The Cmichs had beaten long odds. According to USA Today, about 40,000 companies apply to the show each season. In 2019, the show filmed 158 pitches and aired 88. See LOVESYNC on Page 25

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With some exceptions, the trend with BigLaw firms is to slightly withdraw from Cleveland over the years. In terms of in-market lawyers, Squire Patton Boggs (104 Cleveland lawyers) has shrunk by 30%. Benesch and Tucker are on track to become the largest firms in the region as they grow and Jones Day shrinks. It’s a tacit endorsement, they say, of growing demand for their work. Both firms have been growing steadily outside of Cleveland as well, but Northeast Ohio remains each of their largest hubs. Benesch managing partner Gregg Eisenberg said the retraction of the Cleveland legal market is mostly a reflection of the economy itself. “If Northeast Ohio grows,” he said, “that allows a lot more lawyers to be here to support those clients.” In that sense, he added, the overall attorney market dwindling over the years is somewhat “tragic,” but not a surprise.

The couple flew to Los Angeles in September 2019. Ryan said the “Shark Tank” panel is not told what products will be presented, and the cameras kept rolling during the entire pitch, which lasted nearly an hour but was edited down to 11 minutes for the show. On the show, they asked for $100,000 for 10% of their company and initially pitched the button. They also spoke about an app, which was under development. The sharks said they didn’t like using an app to request intimacy, the cost of the button was too high and the couple did a poor job presenting. Ryan said his presentation of a business plan was derailed because it had aligned around the app, which had been rejected. The Cmichs had to keep mum about their experience until the show aired on Jan. 20. Still, their website got a lot of hits after the episode, and the couple said they don’t regret the experience.

Growth strategies With Cleveland losing some prominence as a business region over the decades with a slow-drip exodus of Fortune 500 companies, law firms founded here that see themselves as national players are moving toward developing themselves in major U.S. and international legal markets. To be sure, most have succeeded in doing that. Unless they had prior Cleveland roots — like Squire global managing partner and prominent Cleveland attorney Fred Nance — national and global-minded firms typically plant their top executives not in their home market headquarters, but in regions like Washington, D.C. (i.e. Jones Day, Baker). This doesn’t mean those firms have any plans to leave Cleveland or to completely disengage from the civic scene, though their diminishing presences may create more opportunities for competing firms. In a statement, a Jones Day spokesman said, “Size is simply not a focus for the office” because of its “One Firm Worldwide” strategy, but that the firm remains “deeply engaged” in the city and isn’t “going anywhere.” Jones Day’s office has mostly reduced through attrition and with some once-Cleveland lawyers relocating to other markets. It’s not uncommon for some top lawyers to join practice teams that take them away from the city, particularly at BigLaw firms. Baker declined to comment on its Cleveland market hiring trends, but

The North Point Office Building and Tower on Lakeside Ave. in downtown is the home of national powerhouse law firm Jones Day. The firm has been growing outside of Cleveland even as its presence in Northeast Ohio shrinks. | DAVID KORDALSKI/CRAIN’S

Cleveland office managing partner Matt Tenerowicz emphasized the firm’s commitment to the city, which is its hometown and home to its largest location. Tucker Ellis managing partner Joseph Morford said he’s “proud” of what’s been accomplished in Cleveland, noting that’s come predominantly through one-off lateral hires. While regionals like Benesch and Tucker do work in other larger legal markets than Cleveland, their strategies are clearly to win business in more midsize markets, like those throughout the Midwest.

Industry outlook Amid the COVID-19 pandemic, reductions in the legal market raise questions of the possibility for layoffs that could shrink the market further. Firms are cutting costs in various, deliberate ways — not just enjoying the savings that come with a steep dropoff in lawyer travel — due to a general economic downturn. Efforts vary throughout the industry but range from re-evaluating use and cost of real estate, to adjusting compensation, to furloughing support staff and freezing hiring or canceling intern programs. Barring some exceptions, most attorneys are not being laid off. After all, firm revenue depends wholly on them. But those lawyers may be sharing a secretary’s help with more colleagues now. As for most industries, things could change if the economy gets worse. But for legal service providers, business is already looking better today than a few months ago. Securing millions of dollars in Paycheck Protection Program loans certainly helped many firms, including Ben-

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esch and Tucker. Firms are reporting a gradual increase in demand for work in recent weeks, though. Early on in the pandemic, large law firms were projecting dire losses for 2020. Budgeting models were once predicting firm profitability taking hits this year in the 25% to 30% range, said Tom Clay, a principal with law firm consultancy Altman Weil. Most firms won’t hit budget this year, but the situation is not as dire as it once seemed. Courts are opening back up to the benefit of litigators. Transaction work is poised to benefit from pent-up demand. Those fighting or defending insurance companies have their hands full. And like the Great Recession, bankruptcy practices will be busy for a long time. There’s little worry of “lawyers becoming homeless,” Clay said. “In large, the legal community responded quick (to the pandemic),” he said. “And their economics are looking much better.” Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

LoveSync launches Despite selling 300 sets of the button online — and another 400 going to Kickstarter backers — the Cmichs are not pushing that product. Instead, they are focusing on the app with the guidance of James Hilton, an adviser for Akron’s Bounce Innovation Hub, where the couple sought help with their product. Hilton, a self-described serial entrepreneur, thinks LoveSync has a great future. “I am someone who is not married, who does not have kids and I don’t fit that perfect demographic,” he said. “But the more I spent time with them and explored the prod-

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uct, the conclusion I arrived at is technology, for better or worse, is inundating almost every aspect of our lives. So if buttons help with romance …” Hilton said technology has simplified dating to swiping left and right, so why can’t people in a relationship find a new way to initiate a conversation about intimacy. The app, which currently is drawing people age 25 to 35, is free and being promoted through Facebook ads, blogs, podcasts and the media. And they are trying to counter negative comments. “There is a phrase that all press is good press, but the biggest challenge is they need to make clear it is not just a sex button,” Hilton said. “There is more to this, and that’s the reason they thought of this. Look at the market size. From time immemorial, people in relationships have sex and that will always continue.” Hilton is working with the Cmichs to expand the app. “Ultimately our goal is to become a couples app not just for inviting intimacy, but for all types of communication to enhance a relationship,” Jenn said. “There are plenty of apps for singles but nothing to support them when they are in longterm dating.” The app could provide alternative ways of communicating and would not replace counseling, but could have a therapist log-in option, the Cmichs said. They are also looking at ways to monetize the app to generate revenue, which could include advertising or in-app purchases. When the time is right, they said they will seek investors. “We haven’t asked anyone since ‘Shark Tank,’ ” Ryan said with a smile.

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PATIENTS

From Page 1

During COVID-19, the Clinic saw “far fewer” heart attacks, strokes and other emergency conditions, she said, adding that these were still happening, but people weren’t receiving care as fear of COVID-19 outweighed willingness to come in for things like chest pain or one-sided weakness. Dr. Daniel Simon, UH’s chief clinical and scientific officer and president of the UH Cleveland Medical Center, said that as a practicing cardiologist, he saw a burst of patients at the end of May and June who were having ongoing heart issues and admitted they hadn’t felt comfortable calling because they knew that if they did so, he would have told them to go to seek immediate care. The system saw this across all specialties, he said. Beyond acute emergency needs, patients also delayed preventative care. Ridgeway said she and others are very worried about the longer term impacts of patients delaying routine screenings or visits to manage chronic conditions. “This will have consequences for years to come,” she said. “We really worked hard to manage chronic conditions either in person or over a virtual visit, but there’s also some reticence for others, and others who may not prioritize that health condition as much as it should be, given their fears of COVID.” In April, UH’s discharges were down 32% to budget and total surgeries were down 73%. Volumes have since been climbing, and in July, discharges were at budget and surgery was only down 7%, Simon said. Outpatient levels, which were down to about 30,000 a week in April, have also bounced back to budgeted levels of around 65,000 a week this month.

Summa Health has posted social distance signage in its various buildings, including floor markings to help maintain 6 feet of physical distance during check-in. | SUMMA HEALTH

Summa’s patient volumes also dropped precipitously in March and April, said Dr. David Custodio, Summa’s senior vice president and president of the system’s Akron & St. Thomas campuses. Surgeries have returned to around 98% of preCOVID-19 levels and most all other services are between 90% and 100% of previous patient volumes, he said. Summa, like others, has implemented safety measures for returning patients to adhere to social distancing, hand hygiene and universal masking guidelines. They changed lobby setups and shifted some registration processes to have patients wait in their car. Some of these changes — such as extra cleaning between patients, staggered office starts or not having

patients sitting ready in a packed waiting room — have slowed the process of moving patients through. “We don’t mind doing it,” Custodio said. “It doesn’t make us as quick as we were before, but obviously, patient safety is the key.” In March and April, the Clinic’s surgical services dropped by about 75%. Outpatient volumes saw a similar drop. In asking different cohorts of patients why they were deferring care, the Clinic learned that the great majority are doing so because of their personal preferences. A number of others reported child care issues with limited day care and schooling options. A small portion of patients cited financial challenges — losing or chang-

SPIRE

and train at Spire, with time set aside each day for them to complete their online classwork. The participants can come for “the week or the month or the whole semester,” said Odell, who created the Pendleton School at IMG Academy in 1999.

Axxella’s late-2019 purchase, coupled with the pandemic, has meant Spire has had only a few months to recruit academy students. And it shows, since the current enrollment is in the 35 to 50 range, Orloff said. In December, Meekma told Crain’s that the new owners’ goal is to grow the academy’s enrollment to at least 250 to 300 in the next five years. Still, Odell and Orloff have been pleased by a summer camp schedule that, even with the challenges brought by the pandemic (from social distancing to reduced sizes and a plethora of extra precautions), has consistently sold out. That, Orloff said, hadn’t been the case since Spire debuted in 2009. “Eventually, we’ll get to where we own those events rather than simply rent out space for them, because the way that you stay financially viable with an operation like this is when you own the event, not when you rent it out to somebody else,” Odell said.

Recruiting season

‘Really vibrant’

The best-case scenario for a boarding school that’s revamping its operations, Odell said, is an 18-month period to ramp up marketing efforts, set up operations and establish a base of summer camps. A significant portion of a boarding academy’s full-time enrollment should come from students who were recruited at camps over the summer, the Spire co-managing director said. If 6,000 students participated in camps at IMG in a given summer, Odell said the expectation was 200 would commit to the boarding academy.

First, though, will be the completion of Spire Village, which features the dorms that can each house 12 students (two in each of the six bedrooms) and contain a house parent suite. Five additional dorms will arrive and be installed in October, bringing the potential student occupancy to 120. For large camps, the number could reach 240 with the addition of bunk beds, Orloff said. Spire’s south building soon will be home to a 22,000-square-foot academic center that includes classrooms, labs, an esports suite, a student lounge and administrative offices.

From Page 1

Spire was rebranded as Spire IA in May, when mechatronics (drones, robotics, artificial intelligence and emerging technology) and esports were added to the stable of programs offered at the academy. In July, plans for an 89-unit TownePlace Suites by Marriott were unveiled. The latest additions are a trio of programs that are geared toward high school and college students whose sports seasons and training have been upended by the pandemic. Spire, like almost every business, was hit hard by cancellations last spring. But its new leadership team, with the help of longtime chief operating officer Jeff Orloff, used the time to position itself to capitalize once things began to open up. With the Mid-American and Big Ten conferences among the leagues pushing back the start of their fall sports seasons to the spring, Spire thinks it’s poised to start utilizing a lot more of its huge property, which now tops 300 acres.

Time to capitalize Spire’s College Time Out Program is being offered to athletes in basketball, swimming, and track and field whose seasons are in question or on hold because of the COVID-19 crisis. The athletes will reside on Spire’s campus, where they’ll train and, assuming enough come on board, take part in competitions. Odell — a consultant with strong IMG ties who, along with Ted Meek-

Spire’s south building is home to a 22,000-square-foot academic center that will be ready for the start of the school year. | KEVIN KLEPS/CRAIN’S CLEVELAND BUSINESS

ma, was hired by Axxella to turn around a facility that had a plethora of financial problems — said the College Time Out program could be expanded to other sports. Odell said he recently received a call asking if a college football team could come to Spire for a month to train and, ideally, scrimmage against other clubs. “They’re all looking and seeing what’s available,” Odell said. Another offering, dubbed the 44 Hour program, is aimed at high school students interested in one of the academy’s five programs (the two recent additions, plus basketball, swimming and track and field). The teenagers will spend a weekend at Spire, arriving early Friday night and departing by 1 p.m. on Sunday, and get 10 hours of training, six meals and other activities. A third, yet-to-be-named program is for students whose high schools are only offering remote classes this fall, Odell said. The students will live

ing their insurance, employment issues, etc. — as the reason they haven’t returned. Ridgeway said this group is actually smaller than she would have predicted, but she expects it will continue to grow. The Clinic is working with these patients to help them through these challenges. The Clinic was able to significantly increase its volume for surgical services in May, but then hit a plateau in June and July and it remains around 85% of its previous volumes for surgical appointments. Outpatient services were a little bit slower to recover but have also leveled off in August and remain between 80% and 85% of their previous levels, Ridgeway said. Ridgeway notes that August is a tough month to judge, though, be-

cause families tend to have a lot going on, such as vacations. “We’re interested to see what will happen in the fall as we continue to reach out to our patients and stress the importance of coming back for care,” she said. As fall approaches, and with it flu season, hospitals are monitoring their capacity and the availability of personal protective equipment (PPE) — two major factors that contributed to the mid-March postponement of nonessential surgeries and procedures. Simon said he feels confident about the PPE on hand at UH, which now has 300 to 500 days’ worth of these supplies, compared to an average of roughly 100 days they maintained before the pandemic. It has also worked to develop connections with U.S. companies that produce PPE. Hospital capacity is a bit harder to predict, as it will depend a lot on the severity of this year’s flu season. Infectious disease doctors hope the practices implemented to slow the spread of COVID-19 will help to significantly lessen the severity of the flu this year. Also important in managing flu season: vaccinations. Ridgeway points to recent data that suggests those who have been up-todate on vaccines, including influenza vaccinations, fare much better with COVID-19. She stressed that it is both safe and important that patients resume their care. “This isn’t just something that’s going to affect them this month or the next,” she said. “COVID will definitely be with us for a while, and we can’t stop tending to our normal health. That’s going to be critical to have the best outcomes for each individual.” Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre A second phase calls for a 200-person dorm, new sports offerings and the potential additions of majors in TV and video production, culinary arts and some health care fields, Odell said. It’s critical, the co-managing director said, that Spire line up partnerships with companies, schools and nonprofits that can help academy students expand their studies and find internships. Spire has a partnership with Grand River Academy that, once all of the necessary approvals are in order, will make Spire a satellite campus of the Austinburg prep school and boarding academy. Odell also has had conversations with Bob Sopko, the director of Case Western Reserve University LaunchNet, about Spire’s mechatronics students being able to use the Sears think[box] space at Case for special projects. Sopko told Crain’s the pandemic has produced a busier-than-usual start to the school year, which has put the talks on hold for a couple months. “They are putting together an amazing facility and program,” Sopko said of Spire. This week, the expansive space at Spire will have dorms. Not far from the new houses are two large piles of dirt that will be transformed into hills for sledding and tubing. Cross country and ropes courses also are on the lengthy list of things to do. Yes, it’s a lot. But that’s the point. “We want this to be really vibrant,” Orloff said. “We want you to pull up and see stuff going on.” Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

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CRAIN’S CLEVELAND LOOK BACK | GLOBAL CENTER FOR HEALTH INNOVATION

Center continues its search for an identity

The idea of opening a medical mart in Cleveland was first proposed in the 1980s but was ultimately curtailed due to concerns that the economic climate couldn’t support it. Decades later, the idea bounced around community leaders once again and was soon tied to a new convention center that Cleveland sorely needed. This time, the idea stuck. By the time the medical mart opened in 2013, it had already been through a name and concept change. Rather than a building of health care business showrooms, the facility would be an innovation center called the Global Center for Health Innovation. — Lydia Coutré

``THE HISTORY In the early 1980s, a task force considered developing the health care equivalent of the Merchandise Mart in Chicago, according to Cleveland Historical, developed by the Center for Public History + Digital Humanities at Cleveland State University. The project was ultimately halted after market studies showed that a shopping mall for health care products wouldn’t be supported by the economic climate at the time. It would be decades before a subsequent attempt brought Cleveland its medical mart. On a trip to the Middle East, Cleveland Clinic CEO Dr. Toby Cosgrove had met a businessman considering a similar medical mart concept. By the mid-2000s, Cosgrove decided it was time to revive the idea in Cleveland. Cosgrove and Chris Kennedy (then president of MMPI, the company managing Chicago’s Merchandise Mart and other industrial showrooms across the country) met with city leadership at the time. The leaders supported the idea. Cuyahoga County commissioners levied a 0.25% county sales tax to raise funds to construct the medical mart and rebuild the Cleveland Convention Center. With MMPI serving as the developer, construction of the massive complex officially began in early 2011. By the time the $465 million project officially opened in 2013, the medical mart had shifted from a showroom concept to an innovation center and had been renamed The Global Center for Health Innovation. Since then, the center has struggled to find an identity. It has been reimagined several times and has attracted and lost many tenants, including its anchor tenant: Healthcare Information and Management Systems Society (HIMSS), which last year announced it would wind down operations there.

``IN THEIR OWN WORDS “We’re turning the page and starting a new chapter in Cleveland history. This will be a catalyst for economic and community improvement.” ——Former Cuyahoga County Executive Ed FitzGerald, at the 2013 official opening of the Global Center for Health Innovation

REPORTERS

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits. (216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter. (216) 771-5437 or michelle.jarboe@crain.com Rachel Abbey McCafferty, Manufacturing/energy/ education. (216) 771-5379 or rmccafferty@crain.com Jay Miller, Government. (216) 771-5362 or jmiller@crain.com Jeremy Nobile, Finance/legal/beer/cannabis. (216) 771-5255 or jnobile@crain.com Kim Palmer, Government. (216) 771-5384 or kpalmer@crain.com Dan Shingler, Energy/steel/auto/Akron. (216) 771-5290 or dshingler@crain.com ADVERTISING

The Global Center for Health Innovation recently lost its anchor tenant and has struggled to find an identity since debuting in 2013. | DAVID KORDALSKI/CRAIN’S CLEVELAND BUSINESS

``WHY IT MATTERS TODAY Leaders had high hopes for the complex. Kennedy of MMPI (which the county parted ways with in 2013) said the project would transform Cleveland into a “Disney World for doctors.” In 2013, ahead of the complex’s opening, local tourist destinations looked for ways to take advantage of what they expected to be a hefty surge in out-of-town traffic. But ultimately, the center has had difficulty finding its niche. The mid-2000s idea of a place for individuals to shop as they outfitted a hospital didn’t ultimately resonate in the marketplace. As leasing wasn’t living up to expectations in 2013, leaders began rethinking the concept. Rather than a collection of showrooms for sellers of medical and health care equipment, the plan was to offer a space where, collaboratively or independently, health care companies, hospital administrators, physicians and other providers could see products in a working environment. In 2017, BioEnterprise Corp., the nonprofit health care and bioscience business accelera-

tor, took control of the Global Center for Health Innovation. In the years since, the Global Center secured new startup tenants and initially extended the lease of HIMSS, but ultimately lost the anchor tenant. County Executive Armond Budish said in 2017 that the takeover was designed to turn around a building that floundered as it searched for a successful identity that would complement the Huntington Convention Center of Cleveland. But BioEnterprise ended its role as manager of the center last year. Following the departure of HIMSS and BioEnterprise, the development corporation overseeing Global Center operations announced in November it would solicit proposals for the “best and highest use” of the space going forward, cleveland.com reported. In May, George Hillow, executive director of the Convention Facilities Development Corp., told cleveland.com that a preliminary review by consultants concluded at least some space at the taxpayer-funded Global Center should serve as an extension of the convention center, but the pandemic has changed considerations for its future.

“The convention center is well run and doing well; SMG is doing a very good job. But the Global Center has struggled to meet the public’s expectations and my expectations.” ——Cuyahoga County Executive Armond Budish, in 2017

THE WEEK AIRPORT HOTEL REBRANDED: Northeast Ohio has lost one of its Marriott flags as the new owner of the landmark Marriott Cleveland Airport, 4277 W. 150th St., has rebranded it as a Wyndham. Sameer Ailawadi, who takes the title of hotelier at AIL Hospitality LLC, said the company thinks the Wyndham flag better fits efforts to increase marketing of the hotel for leisure travelers than the business-oriented Marriott brand. Through 4277 W. 150th St. LLC, AIL Hospitality bought the 372-room hotel for $5.93 million on Aug. 7, according to online records of the Cuyahoga County Fiscal Office. AIL was the winner at an auction in February that the CBRE brokerage conducted with the RealInsite auction site. AIL owns 12 hotels and was launched in 2012.

crainscleveland.com

Publisher/editor Elizabeth McIntyre (216) 771-5358 or emcintyre@crain.com Group publisher Mary Kramer (313) 446-0399 or mkramer@crain.com Managing editor Scott Suttell (216) 771-5227 or ssuttell@crain.com Assistant managing editor Sue Walton (330) 802-4615 or swalton@crain.com Creative director David Kordalski (216) 771-5169 or dkordalski@crain.com Web editor Damon Sims (216) 771-5279 or dasims@crain.com Assistant editor Kevin Kleps (216) 771-5256 or kkleps@crain.com Senior data editor Chuck Soder (216) 771-5374 or csoder@crain.com Editorial researcher William Lucey (216) 771-5243 or wlucey@crain.com Cartoonist Rich Williams

ship stations. It also means more than 1,000 annual hours of team-branded content will continue to air on The Fan and ESPN Cleveland.

The new owner of the Marriott Cleveland Airport is a Rockville, Md., hotel chain that has dropped the Marriott name and replaced it with Wyndham. | STAN BULLARD/CRAIN’S

BROWNS EXTEND RADIO RIGHTS: The Cleveland Browns, Entercom Communications and Good Karma Brands are extending their radio rights partnership through the 2023 season. The previous deal — a unique agreement that created the

NFL’s first game-day triplecast — expired after the 2019 season. The new agreement, a source familiar with the deal said, was for four seasons. The contract keeps WKRKFM/92.3, WNCX-FM/98.5 and WKNR-AM/850 as the Browns’ flag-

CASE WESTERN RESERVE UNIVERSITY, ARMY TO COLLABORATE: Case Western Reserve University researchers will lead a team looking to make “lightweight and high-performance polymeric materials.” The U.S. Army has committed $5.4 million for five years — with the potential for up to $11 million — for this work. Case Western Reserve is leading the project. A subcontract will be granted to Valley View-based PolymerPlus LLC. Researchers will work with the U.S. Army Combat Capabilities Development Command Army Research Laboratory on the design of the materials and advanced manufacturing approaches.

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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 30 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.

AUGUST 17, 2020 | CRAIN’S CLEVELAND BUSINESS | 27

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Celebrating Four Decades of the Biggest Names in News Crain’s Cleveland Business is celebrating its 40th anniversary this year. As part of that, Crain’s Newsmaker Awards will recognize some of the top Newsmakers in Cleveland who have paved the way for businesses and leaders. Please join us virtually as we honor and share stories from some of the top newsmakers in Cleveland’s recent history.

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1980s ROCK & ROLL HALL OF FAME // Mike Benz COMMUNITY DEVELOPMENT // Hunter Morrison

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2000s CLEVELAND’S RISE // Bill Koehler and Bethia Burke GROWTH OF THE CLEVELAND CLINIC // Toby Cosgrove

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