SPECIAL SECTION: Notable Northeast Ohio LGBTQ executives. PAGES 13-20
WORKFORCE: Training inmates for jobs. PAGE 11
CRAINSCLEVELAND.COM I AUGUST 24, 2020
SMALL BUSINESS
COVID’S OTHER VICTIMS
Hundreds of local small businesses have closed since March. Many more are floundering.
Cat Zurchin, left, and Laura Bosse closed their downtown Cleveland jewelry store at the end of May, after a six-year run. Now they’re trying to generate income by hosting jewelry parties and small shopping events at their Midtown studio. MICHELLE JARBOE/CRAIN’S
BY MICHELLE JARBOE
Laura Bosse and Cat Zurchin opened a pop-up jewelry shop in downtown Cleveland in mid-2014, just before the Gay Games. When the athletes went home, the two artists stayed, selling handmade baubles to business travelers, eventgoers and tourists. Late last year, the business partners paid off the last of their debt. They greeted 2020 with optimism. Just five months in, though, they walked away from their small storefront at the historic Arcade. The coronavirus swiftly made Prosperity Jew-
elry’s retail outpost unsustainable. “It wasn’t a stellar living, but it was nothing to scoff at,” said Bosse, 62, of the shop. “I’ll tell you, I miss it now.” See COVID-19 on Page 24
Pandemic is throttling independent restaurants and bars in Northeast Ohio BY JEREMY NOBILE
Nestled in the shadow of office towers, Zaytoon Lebanese Kitchen had grown into a popular lunchtime destination on Huron Road for downtown Cleveland’s white-collar crowd. Sales were steady and reliable, said co-owner David Ina, who also operates longtime family business
Al’s Deli with his parents, Ghada and Albert. Zaytoon was positioned to leap over the three-year hump that often determines what restaurants live or die in a saturated, high-risk, low-margin industry. With its catering business taking off, this was to be Zaytoon’s best summer yet. Ina was “starting to see the light at the end of the tunnel,” he said.
Then the coronavirus changed everything. Much of the restaurant industry is composed of small enterprises, most of whom may not survive long in this climate. The smallest operators have little in the way of cash reserves to make it through a prolonged downturn. Many live on margins of about 3%. See RESTAURANTS on Page 24
ECONOMY
GCP not supporting county library levy frustrates some backers NEWSPAPER
VOL. 41, NO. 31 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
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BY JAY MILLER
A decision by the Greater Cleveland Partnership to withhold its support of a Cuyahoga County Public Library tax levy increase appears to be the first step in a controversial effort to keep the lid on local tax increases. It was spurred by a 2019 study that argued that because the Cleveland area’s tax burden was higher and growing at a faster rate than a group
of 11 peer communities, it is harder for Greater Cleveland to compete with those cities — ranging from Kansas City to Milwaukee to Nashville to Pittsburgh — for business growth. Said Edward “Ned” Hill, professor of economic development at Ohio State University and a former dean of Cleveland State University’s Levin College of Urban Affairs who has participated in some of GCP’s policy dis-
cussions: “I think that GCP took a hostage so that those who issue levies will take the business community’s concerns about cost, efficiency and performance measurement seriously.” The thumbs-down decision on the library has, not surprisingly, ruffled some feathers, most behind the scenes. See GCP on Page 26
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HEALTH CARE
Cleveland Clinic takes ‘the leap,’ grows its research capacity
New centers will study the impact of viruses and bacteria, along with the immune system’s response BY LYDIA COUTRÉ
Nearly five years ago, Cleveland Clinic began building a structure within its Lerner Research Institute to focus on microbes (viruses, bacteria, fungi, any simple unicellular organism), which control human health in many different ways. “Whether or not that microbe was beneficial to your health or a pathogen — meaning the microbe was detrimental to your health — it depended upon both the microbe and equally, your immune response,” said Dr. Serpil Erzurum, chair of the Clinic’s Lerner Research Institute. “So that meant that we started to investigate not just the person, the human being, but what was coming into their living system, their body.” As part of this effort, the Clinic in April established two new centers after more than a year of planning: the Center for Immunotherapy and Precision Immuno-Oncology and the Center for Global and Emerging Pathogens Research. “We took the leap here, but it’s turned out that ... the timing, unfortunately or fortunately, was good,” Erzurum said. COVID-19 is just the first of what’s expected to be many opportunities for cross-functional collaboration between the two centers. This summer, the Clinic opened its 107,000-square-foot Florida Research and Innovation Center in Port St. Lucie, Fla., which will collaborate
“WHAT IS BRINGING THE WORLD TO A STANDSTILL NOW? IT’S A BIOLOGICAL QUESTION. ... IT’S REALLY CLEAR THAT HUMAN HEALTH AND DISEASE AND SPECIFICALLY TRANSLATIONAL IMMUNOLOGY IS VERY, VERY IMPORTANT.” — Dr. Timothy Chan, director of the Clinic’s Center for Immunotherapy and Precision Immuno-Oncology
CLEVELAND CLININ
Erzurum
closely with the centers in Cleveland. Jae Jung was recently named director of the Center for Global and Emerging Pathogens Research as well as chair of Lerner Research Institute’s Department of Cancer Biology. He joins the system from the University of Southern California. Cancers and viruses behave quite similarly, attacking and using a host sys-
Jung
tem to grow, he said. Because of these similar properties, he will be working closely with Dr. Timothy Chan, an immuno-oncology and cancer genomics expert, who was recruited from Memorial Sloan Kettering Cancer Center and Weill Cornell School of Medicine to serve as the director of the Clinic’s Center for Immunotherapy and Precision Immuno-Oncology. 2020 has highlighted the importance of biology, said Chan, noting that the National Institutes of Health’s budget is a fraction of what is allocated to the U.S. Department of Defense. “And yet what is bringing the world to a standstill now? It’s a biological question,” Chan said. Whether it’s cancer, infectious disease or other biological challenges, “it’s really clear that human health and disease and specifically translational immunology is very, very important,” Chan said. Essentially, Jung’s work and Chan’s work are two sides of the same coin. While Jung studies how a virus gets into a cell and takes over function, Chan is focused on the host and immune response, Erzurum said. The Clinic began its focus on microbes’ impact on health by establishing the Center for Microbiome and Human Health a couple of years ago, where researchers have examined how what people eat changes their gut microbiome, impacting susceptibility to vascular diseases,
stroke, heart attack and more. Other moves in recent years to grow the Clinic’s research efforts include the Center for Therapeutics Discovery — created in 2018 to bridge the gap between translational research and clinical drug trials — and the biorepository building currently under construction at the corner of East 100th Street and Cedar Avenue. The Clinic is talking to local health systems about how to partner to allow them access to the new facility, which will at least double the Clinic’s capacity to hold and study tissue and materials from patients for researchers to study. Microbes cause a lot of illnesses, and while there are antibiotics to treat some, “one of the things we were lacking was a really strong defense for viruses,” Erzurum said. When the body recognizes something foreign, whether it’s a pathogenic microbe or cancer, it launches an immune response, she said. Researchers began to study this and recognized an intersection in how they might think differently in treating cancers using a patient’s own immune system and how to be more effective in fighting against emerging pathogens that were coming to the United States — Severe Acute Respiratory Syndrome (SARS), Middle East Respiratory Syndrome (MERS), Zika virus, Ebola virus disease and now, COVID-19. See CLINIC on Page 5
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2 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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MANUFACTURING
Nidec engineers new building to better serve its employees Team NEO says Japanese company’s $12M expansion in Brooklyn Heights is a significant development for the region BY RACHEL ABBEY MCCAFFERTY
Nidec Industrial Solutions aims to create products that are efficient. There’s no need for anything “superfluous,” said Tom J. Aloor, the company’s managing director for the Americas. So when the company set out to build a new facility in Northeast Ohio, that’s the spirit it brought to the table. “It’s tight,” Aloor said. “It’s not tight in the sense of being crowded or compact, but tight in that it just meets the requirements perfectly.” Nidec makes control systems for large industrial equipment, as well as sensors and encoders that measure the speed and position of equipment in settings like mills and mines, Aloor said. As part of its control systems segment, the unit has a growing business in battery energy storage systems for the renewable market. “We’re in pretty exciting spaces,” Aloor said. Nidec Industrial Solutions, which is based in Italy, is part of the larger Nidec Corp. in Japan. In addition to its new building in Brooklyn Heights, it has other sites in Northeast Ohio in other business units. For the new building on Tuxedo Avenue in Brooklyn Heights, the company invested about $12 million, a news release stated. In total, it has about 67,000 square feet of office and manufacturing space and brings to-
Nidec Industrial Solutions invested about $12 million to build its new 67,000-square-foot office and manufacturing facility in Brooklyn Heights. | CONTRIBUTED
gether about 130 employees from three facilities. And, Aloor said, the company is hiring more. The company is investing heavily in technology and personnel for its energy storage systems products, as Aloor said Nidec expects double-digit growth for at least the next five to 10 years in that space. And there’s a lot of growth opportunities in encoders, too, as the world becomes more automated. The larger industrial systems is more of a “mixed bag,” Aloor said. For example, Nidec serves the oil and gas market, which is weak at the moment. But even in that space, Aloor sees opportunity as customers look to operate more efficiently.
Aloor said growth — and projected future growth — in the battery storage systems business in particular was one of the driving factors for the new building. Another was the desire for easier collaboration in the region. Nidec often has grown through acquisition and, in Northeast Ohio, that meant the Industrial Solutions segment was spread across three buildings in Independence and Valley View. Before picking a location for the new building, Nidec created a “heat map” with its employees’ residences, Aloor said. The goal was to find a spot in the center so that the time employees would have to spend commuting didn’t change by more than six minutes. The company’s expertise is in its
people, not its machinery, so that was important. That left Nidec looking in Valley View, Independence and Brooklyn Heights. The company found its new home at 243 Tuxedo Avenue in Brooklyn Heights and got to work. The project moved quickly. The company broke ground on the new building in June of 2019. By March of 2020, everyone had moved in. Of course, the COVID-19 pandemic caused some complications. The company, which serves the defense and medical markets, didn’t have to stop production, but a number of employees had to work from home instead of in the new office. At this time, Nidec has begun to bring office workers back, but on a rotating basis so fewer people are in the facility on any given day. The building itself drew on Nidec’s “engineering heart,” Aloor said, and was designed to exactly fit the needs of the work being done inside. “No more, no less,” he said. The roof has three tiers. The lowest height is for the offices. The company wanted them to be airy and bright, but the ceiling didn’t need to be more than 16 feet, Aloor said. The next step up is for warehousing and assembly, and the third is for building the company’s larger control systems. That last space needs to be able to accommodate cranes, so its roof is the highest at 32 feet. And the building is set up so that it
would be relatively simple for the company to expand. The building is set on at least 9 acres of land, and Aloor said the west wall of the facility is made of a steel-clad material that’s designed to be easy to remove. It’s significant for a global company to choose to expand in Northeast Ohio, because it shows they value the workforce here, said Mindy McLaughlin, managing director of global business development at Team NEO. McLaughlin said Team NEO has long sought to strengthen relationships with the Japanese companies in the region, as the country is the top foreign investor in the state. Christine Nelson, vice president at Team NEO, said it’s significant not only that Nidec chose to stay in Ohio for this consolidation and expansion, but that it wanted to stay within driving distance for its current employees. “I think that’s the biggest testament to our work ethic and our workforce here in Northeast Ohio,” Nelson said. “And that goes a long way as we attract new companies in, as we’re talking to other Japanese headquarters that are looking for locations, or even other companies around the world. It’s again reinforcing the strength of the workforce here that a company with all the options in the world really focused on retaining their employees as they were growing.” Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com
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AUGUST 24, 2020 | CRAIN’S CLEVELAND BUSINESS | 3
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EMPLOYMENT
Workforce Connect moves to adjust to COVID-19 forces local skills development initiative to conduct programs in new ways
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In the early days of the COVID-19 outbreak, an employer-directed skills development program created by the Workforce Connect partnership was just getting underway. The pilot program, “ACCESS to Manufacturing Careers,” which involved formerly incarcerated adults, was designed to provide hands-on manufacturing training in things like quality systems, shop floor math and soft-skill training in work readiness, but had not been designed for the public health and safety requirements brought on by the COVID-19 pandemic. “The program was just getting launched as Ohio was shut down,” said Peter Accorti, president of Talan Products Inc., a Cleveland metal stamping and manufacturing company that participated in the employer-led training program. The students were set to go on plant tours, do in-person interviews and hands-on training, 80% of which had to be moved online. “All the students received Chromebooks and (internet) hot spots. The training center at MAGNET was made into a virtual training center, and when things had to be taught in person, spaces were retrofitted,” Accorti said. The Workforce Connect Manufacturing Sector Partnership represents one of three industries — health care and IT are the others — selected to be the focus of a collaboration of employers, nonprofits, funders and educational institutions working to address workforce deficiencies in Cuyahoga County. The manufacturing partnership, initiated in 2018 and backed by the Cleveland Foundation, Deaconess Foundation, Fund for Our Economic Future, George Gund Foundation, Greater Cleveland Partnership, Team NEO and United Way of Greater Cleveland, was the first industry sector to roll out. In a time when Northeast Ohio is grappling with record unemployment, and significant swaths of the economy remain shuttered or are operating at reduced levels, Workforce Connect, as an employer-led work skills development initiative, has had to make a considerable pivot in the way it conducts programs. “After the shutdown, without the ability to meet for training, we saw a fairly significant impact on people not being able to virtually participate,” said Adam Snyder, MAGNET managing partner for the Workforce Connect Manufacturing Sector Partnership. “There were those who could not wait for training and took whatever immediate jobs they could.” He said another group of possible participants faced a steep digital literacy gap and were not able to join the program even when computers and Wi-Fi were provided. A January 2020 MAGNET survey found about 8,000 open manufacturing jobs in Northeast Ohio, which employers said inhibits their business expansion, Snyder said. Of those
Talan Products Inc., a Cleveland-based metal stamping and aluminum manufacturer, continued its relationship with the Workforce Connect program, despite the challenges presented by COVID-19 protocols. | WOODIE ANDERSON
“WE HAVE A VERY SPECIFIC FOCUS ON REACHING OUT TO AFRICAN AMERICANS, WOMEN, THE RE-ENTRY POPULATION AND OTHER MINORITY CANDIDATES BECAUSE, WHILE THE UNEMPLOYMENT NUMBERS ARE GOING DOWN FOR THE STATE POPULATION AS A WHOLE, THERE ARE STILL CHALLENGES IN OUR MINORITY COMMUNITIES.” — Shana Marbury, senior vice president of education and workforce at the Greater Cleveland Partnership
open manufacturing jobs, about 1,500 to 2,000 are in Cuyahoga County, where nearly 3,000 people are released from prison on average each year. Because most of the manufacturing sector was considered essential and was not shut down due to COVID-19, traditional perceptions of the industry as unpredictable because of layoffs and furloughs have faded, Snyder said, making it more attractive to younger workers. More than 80 candidates applied for the four-week Access program created by Talan, Elsons International and Alloy Engineering, Towards Employment and the Precision Metalforming Association and supported by 13 manufacturing companies that committed to interviewing the eventual nine graduates for jobs.
4 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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lenges in our minority communities,” Marbury said. Looking at the sector partnerships “with an eye to equity and inclusion” is critical when moving forward with the health care and IT sectors, she added. Both the health care and IT sector partnerships have made significant announcements regarding planning, funding and leadership during the COVID-19 outbreak. Even with the severe disruption on the health care industry that has been brought on by the pandemic, Cuyahoga Community College, the lead organization for the Workforce Connect Healthcare Sector Partnership, this month announced the appointment of Susan Krejci, operations manager at Better Health Partnership, as executive director. And RITE, the tech talent arm of GCP, last month was selected to use $2.5 million in funding and lead the newest Workforce Connect Information Technology Sector Partnership. The three sectors were selected as important aspects of the region’s economy, but Marbury said she expects the groups — which overlap as tech is integrated in manufacturing, and health and safety are key concerns for both manufacturing and IT — will share resources while “weaving in the inclusion and equity” into all the programs. “One of the pieces of work that we are most excited about is the synergy that we believe can be created between all three of these industry sectors,” Marbury said. “With these sector partnerships working together, it can deepen outcomes.”
These are all threats “we have Industrial Zoning with Many Allowable Conditional Uses no defenses against,” Erzurum said. “All these things tie together Prestigious High Visible Gateway Location Can Accommodate when you understand the biology up to 100,000 SF Building $550,000 $76,389/Acre of our immunity and the biology of a microbe.” Property Features As “very clever” viruses evade ● Priced to Sell and change themselves, Erzurum ● Last Two Available said she was fortunate to be able Parcels to focus these research efforts and recruit leaders who saw the ● Quick access to I-90 Lot 2R and Crocker Park same issue and wanted to join 7.226 Acre ● Enterprise Zone the Clinic. Parcel Both Chan and Jung will work ● Major Business Area closely with researchers in Florida, ● Stormwater Pond where the new research and innoInstalled vation center represents the Clin● Build to Suit Available ic’s first trans-United States reVIKING PARKWAY search endeavor. Though the system has long been part of naCONTACT US tional and international research Charles Marshall or Terry Noonan networks and has rented laborato330-659-2040 ry space elsewhere, this is the first 3457 Granger Road, Akron, OH 44333 time it has its own dedicated space for basic science research in the VISIT OUR WEBSITE United States outside of Cleveland. www.beaconmarshall.com The Clinic’s yearly research spend in 2019 was $307 million, including federal and nonfederal grants as well as internal and treasury funding. Erzurum said she expects this year’s research spend to be just overBeacon $300Marshall mil- Ad 3-4-Lot 2R-9-2.indd 1 lion. As the Florida Research and Innovation Center grows, she exCandor Logistics pects it to be $40 million to $50 million annually. is a true 3rd party Chan said getting to help build logistics company the Center for Immunotherapy and Precision Immuno-Oncology offering: is both a challenge and a unique ● Premium Warehouse opportunity. He wants to put together an integrated early phase Space immunotherapy development ● Local Cartage, program and is setting up a precibrokerage & supply sion oncology initiative to help translate discoveries into clinical chain fulfillment care quickly. ● Pick & Pack, “That will be a launching pad to expedite & basically prioritize and launch a de-vanning services new generation of early phase clinical trials at the Cleveland Certified to handle any Clinic involving immunotherapy,” product regardless of size, he said. field of industry or scope. Jung is looking to building on the Clinic’s global network (in Call now to discuss your Cleveland, Florida, Nevada, Toronto, Abu Dhabi, London, warehousing and logistics needs! Shanghai and beyond) to create a 216.378.7100 ● Bedford Hts, OH ● www.candorlogistics.com sort of “one-stop-shop” with data from all the system’s infectious disease studies from basic research to drugs/vaccines development to clinical trials. Although both Chan and Jung were recruited long Candor before the Logistics Ad-4-8 copy.indd 1 pandemic, they’re among the many researchers at the Clinic and around the country studying COVID-19. “I am looking at the COVID-19 area from the virus side and then Tim is looking from the host side and patient side,” Jung said. COVID-19 will one day pass, Chan said, and the collaborations they’re forming and things they’re learning now will help advance research far into the future. “Perhaps the silver lining is that we all really understand how important it is to be ready for biologic challenges, right?” Chan said. “And not just cancer, but the things that are sometimes unexpected. We both study human disease using complementary methods and approaches. It’s exCa u l e y Fe r ra r i o f D e t ro i t citing to be able to begin to set up 7 0 7 0 O rc h a rd L a k e R d. collaborations.” �e � t � l o o m � e l d� � � 4 8 3 2 2
Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive
Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre
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Access’ success, Accorti said, is because the Workforce Connect collaboration is so broad. “When as a group we are all sitting around a table, so to speak, we make up 20% of the manufacturers in the region,” he said. “With that size of a group, you understand what is going on and you can affect change.” Change is what Shana Marbury, senior vice president of education and workforce at the Greater Cleveland Partnership, wants to see. As manufacturing sector partner, she points out that even before COVID-19, there were thousands of underemployed and unemployed people of color in the region. According to the Bureau of Labor Statistics, Black workers in Ohio between mid-March and June made up 13.8% of unemployment claims, while representing only 11.9% of the state’s labor force. With the devastating economic downtown disproportionately hurting communities of color, coupled with the focus on racial injustice brought on by police brutality protests around the country, these issues are “running through all elements of the Workforce Connect groups,” Marbury said. One of the overarching goals of Workforce Connect is to develop career programs for some of the “high-potential populations,” including immigrant, veteran and re-entry individuals — all who have been historically underrepresented in Northeast Ohio’s manufacturing workforce. “We have a very specific focus on reaching out to African Americans, women, the re-entry population and other minority candidates because, while the unemployment numbers are going down for the state population as a whole, there are still chal-
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EDUCATION
Hiram College taught Lori Varlotta the ins and outs of change Outgoing president said she’ll miss the institution’s ‘resilience’ and willingness to get involved BY RACHEL ABBEY MCCAFFERTY
In the six years since Lori Varlotta stepped on campus, Hiram College has gone through some radical changes. It’s reorganized its academic programs into new schools, cutting some programs and adding others. It’s introduced a new tuition model and a comprehensive technology program. The Hiram Varlotta will be leaving this fall looks quite a bit different than the Hiram she joined in 2014. And she’s learned a lot about leadership and change in the years that have passed. Varlotta had never served as president of a higher education institution before her role at Hiram, but she quickly learned that it wasn’t about her. A strong relationship with the institution’s governing board is critical, as is a strong leadership team. And it’s all about the “good of the institution,” she said. “And while we take very seriously our leadership roles and the amount of effort that we must pour into these jobs, a good president really keeps his or her eyes on the common good,” Varlotta said. Take the creation of the “new liberal arts” model for example. The college went through a comprehensive process to update its academic offerings. The result was an overhaul that cut some programs — and jobs — and combined others. It also reorganized the college into five schools, bringing different majors and academic programs together. That process taught Varlotta just how complex and messy change can
“ANY LEADER THAT TALKS ABOUT CHANGE IN JUST A SIMPLE OR HARMONIOUS WAY, I THINK IS NOT BEING COMPLETELY HONEST WITH HIM OR HERSELF AND WITH THE COMMUNITY.” — Lori Varlotta, outgoing president of Hiram College
CONTRIBUTED
be. There are no platitudes to share to make people feel better; it’s better to be realistic and transparent, she said. Leaders need to accept that change is never fully complete — decisions get made on partial information and things will always need updated. If timelines need to change, leaders need to share that and be honest about why. And they need to put accountability measures in place and actually follow them. “We have to be the first to say we made a mistake here. We did not hit our goals. Here’s where things went
wrong. Any leader that talks about change in just a simple or harmonious way, I think is not being completely honest with him or herself and with the community,” Varlotta said. Varlotta grew up in Pittsburgh, but spent a large portion of her career in California. Her new role as president of California Lutheran University will allow her to rejoin her husband in the state. She sees a commonality between the two institutions, as both have strong missions with a focus on service.
From Hiram, Varlotta wants to take her success in listening to a wide range of voices and bringing the best ideas forward. At Hiram, she learned how to do just that, how to remain “centered” when opinions diverge and listen to them all, she said. But she also wants to find a different kind of balance in her next role. “I poured my heart and soul into this campus — and happily so — but it has consumed me. It has really consumed my life for six years,” she said. “So I’m hoping that I will be able to give Cal Lutheran my very best but carve out a little bit of time for myself and personal relationships that frankly, I hadn’t set aside for the last six years.” Varlotta will finish her contract at Hiram on Sept. 30, supporting interim president David P. Haney’s first month while simultaneously starting her role at California Lutheran. Varlotta said she’ll miss Hiram’s “resourcefulness” and “resilience.” And she’ll miss the willingness of the
college community, from the faculty and staff to the students, to get involved. There’s no sense of entitlement, she said, and everyone knows it’s on them to do the hard work. Varlotta said the Hiram community became more focused on change in her years on campus, recognizing the need for it and doing the work to achieve it. The campus also is more focused on shared governance now, she said, not just for faculty but also for students and staff. In her first year, the college established a staff assembly, giving staff a formal entity through which to share feedback. And the college leadership relies on student government for input on changes like its new tuition model, taking what had been more of a casual role and turning it into a formal one. Overall, Hiram has become more student-centered in the time since Varlotta took on a leadership role. When the college was working to update its curriculum, the work always came back to students, whether it was how a change would affect the graduation and retention of current students or the attraction of new ones. Varlotta has been a “transformational leader,” said senior vice president and dean of students Liz Okuma. “She gets faculty and staff and student opinions, and then, when it’s time for her, she makes the bold decisions that she feels needed to be made,” Okuma said. Amidst all this change, Varlotta led Hiram through record fundraising years, which she sees as evidence of support from donors and alumni for the transformations the college has made. She was also able to get unanimous support from the board of trustees on complicated issues, like curriculum changes and layoffs, said board chair Dean Scarborough. “The board never wavered,” he said. “They believed in her vision.” Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com
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REAL ESTATE
Rare Parma new-home project sells swiftly Ryan Homes subdivision signals demand in Ohio’s seventh-largest city BBY STAN BULLARD
To see how vigorous the home-building market is, consider the case of Mason Reserve, a just-developed home subdivision in Parma. The project includes 26 lots for homes that was created late last year. Cuyahoga County land records show all but two as of Thursday, Aug. 20, have been transferred to Ryan Homes, one of the trade names that publicly traded NVR Inc. of Reston, Va., uses for its operations. Those two lots must still be waiting for buyers to complete the documentation to buy the houses, or they may still be available, as they remain titled to Masich Highlands LLC, a Cleveland land development concern. Three calls to NVR’s Brecksville office were not returned by 5 p.m. last Thursday, Aug. 20. A longstanding practice for Ryan is to buy sites for homes from third-party land developers at a pace of one or two, as the case may be, or more, as it has buyers sign contracts for the tobe-built properties. The policy reduces risk for the homebuilder. It also provides a marketing-based building concern to acquire the empty home sites that land developers, who ply the fiscally riskiest aspect of the home-making business. There is no Parma development on the Ryan Homes website for multiple subdivisions throughout Northeast Ohio. It disappeared in June from the web, a sign the company was no longer marketing the parcels. It effectively had none left to sell there. Parma Mayor Tim DeGeeter said in a phone interview that he held his breath about the subdivision’s fate
Lots in the Mason Reserve development in Parma have sold quickly. | STAN BULLARD/ CRAIN’S CLEVELAND BUSINESS
when COVID-19 hit, the state required strict steps to attempt to control it, and the nation plummeted into a severe recession. “I was worried about how things would go,” the mayor said. “But it’s incredible how the housing market has kept going during the pandemic in Parma, both with these new homes and existing homes.” DeGeeter said Ryan executives told him several months ago that the subdivision was selling so quickly that it was effectively a sellout. The outcome, he said, shows demand for building new houses in Parma if the land is available for it. The city did not provide any subsidies for Ryan, he added, but is glad to have the additional income tax from the buyers and new housing product in the city. He said it has been encouraging to see houses sprout on the sites this year, which he attributes to proximity to both I-77 and the Jennings Freeway. Most of Parma was developed since World War II and activity waned the last few years as builders set their sights on land-rich suburbs nearby and further afield.
The land for the subdivision was acquired by Masich Highlands last year from the Slovak Evangelical Lutheran Holy Trinity Congregation, 6220 Broadview Road. DeGeeter said Bill Mason, former prosecutor in Cuyahoga County and now the county’s chief operating officer, had bought the unused land from the church and worked with an investment group to develop it. Mason formed Masich Highlands in 2016, according to state incorporation records. The same group developed a residential site in Seven Hills at that time, when Mason was in private law practice between his stints in public service. Mason did not return calls from Crain’s. Solon-based land developer and namesake salon operator Dino Palmieri is among Ryan’s vendors and knew how fast the Parma project was selling, although he is not involved in that subdivision. “They are a machine,” Palmieri said of Ryan in a phone interview. “They have marketing and price-control mechanisms that allow them to respond to the market as low interest rates prime demand.” Palmieri noted that projects in older suburbs where land is scarce also benefit from short commutes to workplaces and a built-in market of move-up buyers. However, Mayor DeGeeter has his own way of looking at the rapid build-and-sell experience with the Parma parcels. “It is one of the good things to happen in 2020,” DeGeeter said.
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August 24, 2020 | CRAIN’S CLEVELAND BUSINESS | 7
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PERSONAL VIEW
Leaders must step up to rebuild urban service sector
RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS
BBY JAMES M. TRUTKO
EDITORIAL
All of the above N
obody gets it right every time, and Ohio’s top election official, Secretary of State Frank LaRose, who generally has done good work in clearing a path for strong ballot access this fall, is a case in point. These are challenging days for people who run elections, in Ohio and everywhere, since an unpredictable pandemic leaves real questions about the ability to conduct full-scale, in-person voting for the general election on Nov. 3. President Donald Trump isn’t helping the matter by consistently sowing unfounded fears of vote-by-mail fraud, and, more recently, doing the same about an alternative, ballot drop boxes. But as the Associated Press pointed out, drop boxes “have been used with success for several years in states like Oregon, Washington and Colorado that rely largely or entirely on ballots that must be sent in.” Their use is being expanded, the AP said, “because of the coronavirus outbreak and, more recently, concerns about the post office’s ability to do its job.” But their use is controversial, as officials in some states argue that drop boxes are too costly, raise security concerns or ON ITS FACE, THE violate state laws. ONE-DROP-BOX-PERLaRose’s current approach on drop boxes is a COUNTY APPROACH IS compromise that satisfies SILLY. IT MIGHT WORK no one. The Republican plans to JUST FINE IN OHIO’S have one drop box in each SMALLER COUNTIES. of Ohio’s 88 counties. He says he would need legislaBUT IN BIG COUNTIES tive authority or clearance IT’S WHOLLY from state Attorney General Dave Yost to add more, and INADEQUATE. that it’s too late in the process to get such approval from Yost. On its face, the one-drop-box-per-county approach is silly. It might work just fine in Ohio’s smaller counties. But in big counties like Cuyahoga, where the sole drop box would be at the Cuyahoga County Board of Elections headquarters, it’s wholly inadequate. The AP notes that according to a memo
issued by federal authorities in response to the pandemic, it’s recommended that there’s one drop box for every 15,000 to 20,000 registered voters. It’s probably too late to match that ratio for Cuyahoga County, where more than 600,000 people voted in the 2016 presidential election, but surely LaRose knows that one isn’t enough if the drop box option is to be a realistic way for voters to cast their ballots this year. He should push the Republican-controlled state Legislature to provide the authority to place multiple drop boxes in larger counties — say, the 27 with populations above 100,000. To his credit, though, LaRose announced last week that he’s asking the Ohio Controlling Board for permission to use up to $3 million from a fund within his office to pay for the postage on mailed ballots for the general election. Approval of the request “will effectively be making every mailbox a drop box for millions of Ohioans, making it easier than ever to cast a ballot in a general election,” LaRose said in a statement. The money would come from the Business Services Division fund of the Secretary of State’s office. That fund is relatively flush these days because Ohioans are breaking records for new business filings. LaRose’s office reported last week that there were 18,483 new business filings in July, breaking (by 15%) the previous record of 16,047, which was set in June. Filings are up 65% from July 2019. This is the result, obviously, of people getting entrepreneurial after losing their jobs during the pandemic. The money is there, so the seven-member state Controlling Board, which provides legislative oversight over certain capital and operating expenditures by state agencies, should waste no time in approving LaRose’s request. The secretary of state noted that about 1.2 million Ohioans cast their ballot by mail in the 2016 general election, but he has told county boards of elections to prepare for that number to double, or perhaps increase by even more than that, given concerns about in-person voting due to the pandemic. Those who want to vote in person should by all means do so. But the state must make sure, in the extraordinary circumstances of 2020, that all who want to vote can do so safely and securely, by mail and at drop boxes.
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
Economic and social conditions in Metro Cleveland are a long way from February 2020. In just five months from February to June 2020, nonfarm employment in Metro Cleveland decreased by 102,300 (-10%), wiping out nearly a decade of hard-fought post-recession employment gains. The pandemic erased Metro Cleveland’s employment gain of 88,000 jobs from 2010 to 2019 Trutko is an and its historically low unemployment for economist and many historically disadvantaged groups. market research The employment loss disproportion- professional. The ately affected the local private service lifelong sector, which represents over 70% of the Cuyahoga economy. This sector includes bars and County resident restaurants, cinemas and theaters, hotels lives in Rocky and airlines, gyms and salons and shop- River. ping centers. Metro Cleveland’s private service industry employment dropped by 87,700 (-12%) compared to a loss of 800 (-1%) for the goods-producing industries. The local leisure and hospitality industry was clobbered. Almost 30% of the area’s jobs in the industry — more than 30,000 — were lost. In 2019, Metro Cleveland had 54,400 business establishments with employees, only 600 more than in 2010. About 46,500 (86%) were classified as service providers. While it is im- THE URBAN SERVICE possible to estimate how many ECONOMY REQUIRES businesses will be left at the end of 2020, it is already clear that SPECIFIC CONDITIONS many thinly capitalized or mar- THAT HAVE BEEN ginally profitable businesses will close. Each lost business COMPROMISED BY THE represents about 15 jobs. CORONAVIRUS AND THE The question many are asking CIVIL DISTURBANCES. now is, “How long will it take for the economy to recover?” The economic development organization Team NEO is pessimistic, predicting that it will take until 2025 to recover to the 2019 employment level. The organization assumes the area will trail the national economy, which it typically does. However, Team NEO focuses heavily on the manufacturing sector, which depends on national markets, but represents only 9% of employment. As a result, the important steps and strategies required to restore the much larger service sector do not get enough attention. Several recent publications have predicted that the double whammy of the coronavirus and widespread civil unrest will change the public’s view of the safety and desirability of dense urban living in the nation’s cities. The urban service economy requires specific conditions that have been severely compromised by the coronavirus and the civil disturbances. Political and community leaders in Metro Cleveland will need to set the proper tone and take steps to reassure business owners that a safe, profitable business environment exists for service industries. Service industries often depend on close face-to-face interaction between the business and customer for their transactions. Those relationships require a level of civility, a feeling of normalcy and trust between the parties. Service industries are also clustered geographically within cities and derive a part of their appeal from the crowds they attract. Some of these factors have suffered great damage as result of the pandemic and protests.
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 TRUTKO on Page 9
Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.
8 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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OPINION
TRUTKO
From Page 8
Service industry owners are in a precarious position as they consider the future. The cost and risks of operating a service business have dramatically increased while customers and their disposable income have dropped. Lockdowns have reduced operating capital and margin for error. With staff and customers wearing masks, many business owners and customers feel stressed and uncomfortable, and a normal business environment does not exist. Some customers have returned , but many have stayed away, and owners do not know when or whether the customers will come back. To add even more uncertainty, many customers have found they do not need to go to stores to meet their everyday needs. If the region is to rebound and recover its economic vitality, local political and community leaders should prioritize preserving existing service businesses and restoring business confidence so that new entrepreneurs are willing to make investments that will create jobs. A shortage of service industry employers is looming, and it will create a shortage of jobs, particularly for low-skill workers. It is particularly important to develop a good strategy for Cuyahoga County, which represents 71% of employment and 66% of business establishments, if the region is to prosper. The county, and especially downtown Cleveland, needs to re-establish its desirability for service businesses. The area has some positive assets, but it has several long-standing factors working against it, including higher costs and taxes. It has added safety concerns and other conditions favoring the coronavirus. My fear is that political leaders simply do not understand the service sector’s problems. Political leaders are generally career politicians or attorneys who are unable to see the world through the eyes of a small business owner. They typically deal with other politicos and bureaucrats, leaders of nonprofits and managers of large businesses — people with safe and predictable incomes — and they undervalue the financial risk associated with investments by service sector entrepreneurs. Small service businesses are not an important politi-
cal constituency for local leaders, despite their importance as local employers. While popular with politicians in the abstract, small service businesses are frequently the targets of heavy-handed regulations or taxes. These business owners find it hard to speak with one “voice” because they have little time and their priorities differ by industry and geography. Policy decisions on safety and public services, community infrastructure and public education have largely been driven by strong unions that have an oversized role in formulating budgets and protecting public workers. If political leaders decide that now is the time for radical social agendas, redistributionist taxes or new regulatory burdens, and fail to shore up small service business employers, it will likely have a catastrophic effect on the local service sector and lead to high unemployment. Community leaders have a mixed record in speaking up for the local service industry. On the positive side, they have been strong and vocal boosters for downtown and local tourism. At the same time, most community economic development strategies have had an excessive focus on export sectors of manufacturing, biotech, health care, technology and financial services. These sectors are undoubtedly important for the economy, but they are not especially dependent on face-to-face interactions and they are not good job generators for lower-skilled workers. Even if leaders were willing and able to focus on restoring a vibrant local service sector, they face a challenging situation. Jump-starting any solutions will require a substantial investment, but the pandemic and social protests have destroyed a significant amount of community wealth. The public will be asked to pay for an extra layer of safety that they will not be able to measure. The bottom line is that Metro Cleveland faces a difficult challenge in restoring a safe and stable environment for job growth in the urban service sector. Without strong action, it is possible that outmigration from the region will accelerate and Cuyahoga County will lose 10% to 20% more population and businesses in the next 10 years. If this occurs, it will be impossible for the least advantaged to make progress in their lives. A bleak future awaits unless local political and community leaders step up their game and implement effective strategies to rebuild the local service sector.
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ADVISER Tips on how to manage your career during a global pandemic
WORKFORCE DEVELOPMENT
PAGE 12
ILLUSTRATION BY SORBETTO
KEY ADJUSTMENT
KeyBank adapts to the COVID-19 pandemic with a virtual summer internship program BBY DOUGLAS J. GUTH
P
andemic-spurred stay-athome orders and social distance mandates have changed the way companies train and attract talent — perhaps permanently. Although the new coronavirus forced some businesses to shut down internship programs this summer, KeyBank combined technology and creative networking solutions to provide students with a real-world experience in a fully online setting. Normally, Key’s enterprise program interns would spend their summer at Key Tower downtown. COVID-19 required a quick pivot into virtual learning for an initiative vital to ongoing hiring at Key, said leadership development manager Jennifer Cowles.
“WHILE COMPANIES WERE CANCELING THEIR INTERNSHIP PROGRAMS, WE THOUGHT IT WAS IMPORTANT TO MOVE FORWARD. WE MODIFIED (OUR LIVE INTERNSHIP) INTO A SEVEN-WEEK VIRTUAL PROGRAM. STUDENTS NOT ONLY DID THE WORK WE HAD PLANNED WHEN WE THOUGHT THEY WERE COMING IN PERSON, BUT WE ALSO HAD VIRTUAL ONBOARDING AND ORIENTATION.” ——Jennifer Cowles, KeyBank leadership development manager
“While companies were canceling their internship programs, we thought it was important to move forward,” Cowles said. “We modified (our live internship) into a seven-week virtual program. Students not only did the work we had planned when we thought they were coming in person, but we also had virtual onboarding and orientation.” Key brought in 160 interns for a virtual version of its enterprise program, leveraging the WebX meeting platform that participants accessed using company-supplied laptops. Meanwhile, the Cleveland-based financial services giant used Microsoft Teams for workplace chats between interns and various departments. Students interested in a banking or finance career developed client pitch books, engaged in risk modeling and analysis, and worked on process improvements and data analytics — namely, all the projects they would have their hands on in a traditional steel-and-glass setting. Key offered three pre-orientation training calls prior to their interns’ first day in the virtual office, sharing information about company operations and philosophy. “We offered a program that was meaningful and engaging and also conveyed our culture,” Cowles said. “We’re used to conveying
that face-to-face, and wanted to make sure it was felt in a virtual environment.” Project managers conversed daily with their young charges, mapping out assignments or connecting interns with veteran analysts who also served as mentors. Part of Key’s standard internship program involves participants meeting college-aged colleagues outside of their chosen departments. Virtual breakout rooms gave interns a socially distanced glimpse of crucial company functions, even if their career paths lead elsewhere. “An individual might go into an analyst program, but has opportunities in other departments of interest,” Cowles said. “It’s networking that’s reinforced through technology.”
‘A diverse talent pipeline’ A company going digital isn’t exactly novel, but Key’s size and scope mandated a “hyper-focus” on staying connected, Cowles said. Program leaders pulled together lists of would-be mentors that interns could contact from home, while executive-level officials were available to expound on core company values that an online experience can’t completely duplicate. See KEY on Page 12
10 | CRAIN’S CLEVELAND BUSINESS | August 24, 2020
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FOCUS | WORKFORCE DEVELOPMENT
Employer, local foundations link up for inmate job training
Twinsburg Township-based reLink builds on Dalton Foundation’s work with prison programs BY JUDY STRINGER
Ray Dalton often challenges guests of Twinsburg Township-based reLink Medical to pick out the handful of Grafton Correctional Center inmates among 20 or so employees fluttering around his warehouse on any given day. “No one can tell them apart,” he said. “When the inmates get here, they put on a reLink T-shirt. They look like us, they talk like us and they work like us. “And, if I’m really honest about it, productivity from this socioeconomic workforce is actually better. They call off less. They show up more. They work harder, and they don’t argue about what color socks they have to wear. They just want a job. They want a future.” Dalton co-founded reLink in 2015, bringing to the used medical equipment aggregator a decade-old re-entry employment partnership between his family charity, the Dalton Foundation, and prison programs at Cleveland-based True Freedom Ministries and Broken Chains Ministry in Akron. The program started at Dalton’s former company PartsSource Inc. and was ingrained into the management objectives at reLink, where today 30% of employees are former inmates. It was this history of being a “wellknown second-chance employer,” he said, that gave rise to ReLink’s current involvement as a job-training site for men approaching release from a prison in Grafton. “Basically our program expanded from full-time re-entry employees who were finished with their sentence,” Dalton said, “to people who were still serving their time and are brought
Inmates from Grafton Correctional Institute, Ohio Department of Rehabilitation and Correction employees, reLink medical employees and staff from True Freedom Enterprises are seen in the reLink warehouse. | CONTRIBUTED
“ALL OF THESE THINGS THAT WE OFTEN TAKE FOR GRANTED THAT EVERYONE KNOWS HOW TO DO. BUT WHEN PEOPLE GO INTO A PRISON AT 17 OR 18 YEARS OLD, THEY HAVE NOT LEARNED A LOT OF THOSE THINGS.” — Barbara Campbell, Dalton Foundation executive director
from the prison into our workforce.” ReLink, the Dalton Foundation, True Freedom Ministries and the Ohio Department of Rehabilitation and Corrections (ODRC) officially launched their Work Force Development Collaborative in early 2019. In this program, minimum security inmates from Grafton who are six months or less from their scheduled release are placed in an externship at the Enterprise Parkway warehouse. Dalton Foundation executive director Barbara Campbell said the inmates have to have graduated from one of True Freedom’s intensive programs,
completed a pre-release vocational program and be approved for “community approved statuses” by ODRC before being placed at the company. Along with vetting externs, ODRC trained reLink management and staff on safety and security protocols. ReLink’s role, Campbell said, is to provide job skills, such as certifications in Microsoft and on forklift, weighing and packaging machines. True Freedom provides transportation and ongoing “life skills” training, ranging from how to balance a checkbook and pay bills to how to dress for work and greet someone appropriately.
“All of these things that we often take for granted that everyone knows how to do,” she said. “But when people go into a prison at 17 or 18 years old, they have not learned a lot of those things.” Dalton said 19 Grafton inmates have been through the program to date. Only one man “bombed out,” because, Dalton said, he just didn’t want to put in the work. The inmates, like all reLink personnel, are expected to meet productivity goals and earn a free lunch when they do so. The company has hired three of the externs full time upon their release. Excluding the dropout, the others are employed in positions earning above minimum wage, according to Dalton. “Recidivism costs the state of Ohio about $38,000 per person per year,” he said. “If you think about the 18 men who have been through this program successfully, we already are saving the state hundreds of thou-
sands of dollars.” More importantly, Dalton added, are the lives that are changed. Getting individuals out of the prison system and gainfully employed has a positive impact not only on that one person but entire families and often generations that follow, he said. While six to eight Grafton inmates currently work at reLink daily, Dalton said the program could accommodate up to 12 a day. In addition, he is currently working with the Grafton officials on an extended opportunity in which reLink would set up a medical equipment harvesting site inside the prison. “We go through about 1 million pounds of scrap a year,” he said. “These are things that come in broken or can’t be repaired or reused, and because we have zero landfill policy with our clients, we tear these items down to the most natural environment. That is something we can train to be done offsite.” He estimated the harvesting operation would provide daily job training and work experience for another 18 to 20 inmates. Dalton ultimately hopes the success of programs like these will encourage CEOs and hiring managers around Northeast Ohio to draw from the pool of former inmates, where seven out of 10 are unemployed. “If every company could hire even just one person out of the re-entry marketplace, we could bend the curve and make some really meaningful changes to the way society views this population,” he said. Contact Judy Stringer: clbfreelancer@crain.com
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At the end of February 2020, the U.S. labor markets were at record low unemployment rates of just above 3%. One month later, boom! Unemployment skyrocketed to nearly 15% as a result of the COVID-19 pandemic. Millions of U.S. citizens and almost 100,000 Ohioans suddenly found themselves out of work. This added to the stress around health concerns as the news updates about the novel coronavirus came in practically every hour. At the same time, many had to shift their focus to care for their children who were relocated from the classroom to virtual learning at home. Phew. It was (and still is) a lot to handle, and effectively managing careers was not a priority. All of us were in survival mode. Five months later, the Cleveland workforce still faces many extraordinary challenges. We are seeing two large factions of working-age Northeast Ohioans: unemployed/underemployed and actively looking for work, or employed and cautiously considering their options. It is the most unique labor dichotomy in the U.S. in nearly 80 years. Many Clevelanders who worked in hospitality, travel or other ravished industries now find themselves actively looking for their next job, picking up work wherever they can or spending more time on their side hustle. If this sounds familiar, we suggest the following to rebound and get your career back on track. DEAL WITH THE LOSS: Make a concerted effort to deal with the loss you experienced when your career turned upside down. Many professionals neglect to deal with losing their job as a major life event. Consider individual counseling and/or getting help from
more than just a passion project on the side. For those employed, the stress is entirely different, as is the experience of searching for a new job while employed. With layoffs happening around them, people who ASK FOR HELP: Once you’ve are employed are feeling dealt with the loss, let every- Bernatovicz is quite fortunate but also one know you are looking for the founder of concerned about keeping work (be specific in what Willory, a Bath their job. On top of that, jobs you seek) and ask them Township firm they may be working longer to keep an eye out for poten- providing hours from home with no tial career opportunities. search, staff downtime, overdosing on Don’t be ashamed to spread augmentation video calls or at an office the word about your search and consulting with additional COVID-19 on social media, send out services in HR, safety protocols. For those personal emails and call payroll and HR currently employed, you friends or former colleagues. technology are in a unique position to Lean on your network to consider a job change with help make connections with contacts at organizations with job these points in mind. openings that are a fit for you. GO ON THE OFFENSIVE: High-quality BE SELECTIVE: When you can, be par- candidates are still very much in deticular in your search. Don’t apply to mand. Employers are using this time every position you find. By only ap- to be selective and pick the right canplying to jobs that truly match your didates that fit their needs and culexperience, pay and location, it will ture. Keep your eye out for positions minimize your frustration. Did you posted via online job boards and know that only one out six times can- connect with one or two local staffdidates will hear back from the jobs ing/search firms to let them know for which they apply? By being selec- you are open to hearing about the tive, you will play to your strengths right opportunities. and apply to jobs that are an excelUSE THE LEVERAGE: When you’re emlent fit for you. ployed, looking for a job feels drastiACT LIKE A SHARK: Consider a change of cally different than when out of work. career or start your own business. Those gainfully employed can lean Thousands of entrepreneurs have got- on their current position to bring ten their start while facing a personal more confidence to an interview proor financial hardship. Often, ingenuity cess and can be even more discernspurs from life-changing experiences ing as they currently have a job. The moral of the story is to accept that cause people to self-reflect. The Great Recession created the “gig” the stressful position (unemployed economy, and now COVID-19 has or employed) that you are in, ask for shifted many to the “hustle” econo- help and be true to yourself in findmy, where people are pouring their ing that next step in your career prohearts into side hustles that turn into gression. local career coaching organizations. Also, read John W. James and Russel Friedman’s “The Grief Recovery Handbook” for the meaningful action steps for helping you deal with your loss.
KEY
From Page 10
“Interns reached out to executives for a ‘virtual coffee,’ ” Cowles said. “We were more than happy to answer questions and spend time with them. Interns were thrown into the middle of massive projects, so there was always going to be questions.” Key partnered with 40 colleges and universities for this year’s program, which included in-person retail training within the company’s vast banking network. Some enterprise interns met virtually with clients, replicating as closely as possible the tasks they might perform as a fulltime employee. Internships have a long history of impacting a student’s employability and salary. A 2019 study by the National Association of Colleges and Employers (NACE) showed that 66.4% of graduates with paid internships received a job offer. Key’s internship program acts as a talent base for the company, drawing knowledgeable, skilled workers able to evolve alongside client needs. “All of our businesses have at least one intern — and sometimes multiple interns — supporting business opportunities like client pitches,”
KeyBank enterprise intern Andrew Sedmonk worked from home this summer. | CONTRIBUTED
Cowles said. “A diverse talent pipeline is critical for us. We’re ensuring we have a strong analyst pool that will grow in the company.” Venture capitalist and entrepreneur Michael Goldberg, who currently serves as an associate professor at Case Western Reserve University’s Weatherhead School of Management, said internships are a means for employers to evaluate a student’s talent and culture fit. COVID-19 put a crimp in that all-important engagement piece, considering the best assessment opportunities often come from seeing how interns engage with teams in nonwork settings. Adapting to internship programs scotched by the virus crisis, CWRU
placed 70% of 120 students into remote openings with local startups and small businesses. “I found employers to be really accommodating,” Goldberg said. “Much of the learning and networking that comes with traditional internships was not happening in a traditional way. There was lots of focus on mentoring.” One ambitious future professional enjoyed an online internship for a firm in Hong Kong. Goldberg admits that many of the rapid-fire matches the university made probably would not have happened in a pre-pandemic world. “There’s no substitute for real business and technology challenges in a work environment,” Goldberg said. “We saw new opportunities emerge.” At Key, more than 70% of its 2019 interns integrated into an analyst program designed for early-career individuals. Cowles said COVID-19 has ushered in a new era of digitization that could transform how companies approach their internship efforts going forward. “We’ll continue to leverage social collaboration and virtual meetings to stimulate personal connections,” Cowles said. Contact Douglas J. Guth: clbfreelancer@crain.com
12 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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SPECIAL SECTION Crain’s Cleveland Business is celebrating the professionals who have an impact on Northeast Ohio in their business and in advocacy work in the LGBTQ community — as members, allies and supporters. Our profiles of 21 professionals, written based on nomination forms submitted to Crain’s, honor their business, civic and philanthropic achievements while highlighting their work on LGBTQ equality and inclusion.
Nickie Antonio Title: Senator, Ohio General Assembly Last degree earned: Master of public administration, Cleveland State University
Sen. Nickie Antonio became the first openly gay member of the Ohio General Assembly in 2011, when she took a seat in the House of Representatives. Since then, she’s advocated for equality, anti-discrimination laws, public health efforts and workers’ rights, among other causes. She’s also won over unlikely allies. “She comes from a blue pond in what often feels like a red sea. But she gets stuff done,” said John Corlett, a longtime colleague who now leads the Center for Community Solutions, a nonpartisan think tank focused on health, social and economic issues. Antonio, a 65-year-old Democrat, was the first member of her family to graduate from college. Her professional background spans education and nonprofit administration. Her career in public office began on Lakewood City Council, where she held an at-large seat before joining the state Legislature. When she bumped up against a term limit in the House in 2018, voters elevated Antonio to the Senate. She now represents a swath of the West Side, including parts of Cleveland and close-lying western suburbs. She and her wife, Jean Kosmac, live in Lakewood. This year, in the midst of the pandemic, Antonio has argued for a statewide freeze on evictions and foreclosures, with exceptions for cases involving domestic violence. She continues to push for the Ohio Fairness Act, which would prohibit discrimination in housing, workplaces and other circumstances based on sexual orientation and gender identity or expression. Corlett said Antonio has the ability to put people at ease, to navigate partisan divides and balance lofty goals with political pragmatism. “Just by being there, Sen. Antonio changed the Ohio General Assembly,” he said. “Because anyone who said that they didn’t know an LGBT person couldn’t say that anymore. And I think that’s how you change hearts and minds. I believe she’s done that, just by her mere presence.” — Michelle Jarboe
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``Nickie Antonio, Ohio General Assembly ``Joshua Berggrun, McCarthy Lebit Crystal & Liffman PAGE 14
``John Corlett, the Center for Community Solutions ``Jane Daroff, PFLAG Cleveland ``David deBardelaben-Phillips, Energetic Awakenings; Health Action Council ``Amy Delp, MetroHealth System ``Diane Feigi, Bonezzi Switzer Polito & Hupp Co. ``James Graham, Cleveland-Cliffs Inc. PAGE 15
``Monica Gustin, Greater Cleveland Sports Commission ``Marty Kanan, King Nut Companies ``Rick Krochka, Triad PAGE 16
``Gregg Levine, Ratliff & Taylor ``Jim Mahon, Akron/Summit Convention & Visitors Bureau PAGE 17
``Joe Matuszewski, EY PAGE 18
``Nancy Mendez, United Way of Greater Cleveland ``Phillip Montgomery, Department of Job and Family Services in Summit County PAGE 19
``Bill Podojil, Avery Dennison Corp. ``Jes Sellers, PFLAG Cleveland ``Bob Sferra, Culinary Occasions
ANASTASIIA DMITRIEVA
NOTABLE LGBTQ EXECUTIVES Joshua Berggrun Title: Associate, McCarthy Lebit Crystal & Liffman Last degree earned: Juris doctor, Elon University School of Law
The same passion Joshua Berggrun brings to his real estate practice at McCarthy Lebit Crystal & Liffman, where he works on large transactions and investments across the country, also follows him into the community. It has helped him in his career as a dealmaker, but more importantly, it has helped those around him. To be sure, in just a few years as a practicing attorney, Berggrun has made an impact in his field, working on multimillion- and multibillion-dollar deals and convening other professionals in the real estate, investment banking, private equity and finance industries, according to the nomination. But it’s not just business where Berggrun’s apparent charm and propensity to bring people together shine. If not working, Berggrun might be mentoring college students interning at Cleveland Hillel or other young professional, volunteering with the Jewish Federation of Cleveland, rallying his teammates at Stonewall Sports, which offers leagues for LGBTQ+ individuals and allies, or supporting the Plexus LGBT & Allied Chamber of Commerce. Eager to donate his spare time, Berggrun is quite active in other Jewish organizations, including the local chapters for BBYO and Moishe House, and legal aid clinics. His mentoring includes the North Coast Angel Fund, where he lends support to young startup companies. Berggrun also serves as a supervising attorney to new law clerks at his firm. “He is a genuine and kind person,” according to the nomination, “can work a room and is a confidant for those he works with and represents.” — Jeremy Nobile
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``Patrick Shepherd, Cleveland International Film Festival ``Michelle Tomallo, FIT Technologies
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FOCUS | NOTABLE LGBTQ EXECUTIVES
John Corlett
Jane Daroff
David deBardelaben-Phillips
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Title: President and executive director, the Center for Community Solutions
Title: Co-founder, PFLAG Cleveland
Title: Founder and president, Energetic Awakenings; operations and special projects leader, Health Action Council
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Last degree earned: Master of Science in social administration, Case Western Reserve University
Last title earned: Master’s in education, Cleveland State University
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John Corlett has spent decades serving as a champion for marginalized populations, from children to senior citizens to those in the LGBTQ community. From his early work at Planned Parenthood to his current role leading the Center for Community Solutions — a local nonpartisan think tank focused on health, social and economic issues — Corlett is a fierce advocate for “those without a voice in the halls of power,” said Marcia Egbert, program director at the Gund Foundation who’s known Corlett for 30 years. Corlett also has served as state Medicaid director and vice president of government relations and community affairs at MetroHealth. “He’s always been a dogged advocate wrapped in this very warm and gentle exterior,” Egbert said. LGBTQ advocacy has been an undercurrent of Corlett’s career, starting as a student at Ohio University, where the head of the campus ministry asked him to join a group that successfully asked the school to add sexual orientation to its nondiscrimination statement. This month, the center is hosting a webinar to examine poverty in the LGBTQ community during COVID-19. His path between those two efforts is dotted with decades of sometimes quiet but always important activism: securing firsttime state funding for an HIV drug assistance program while at a local nonprofit; becoming a founding member of the Cleveland Stonewall Democrats; and establishing a scholarship at Ohio University to support LGBTQ student travel in honor of a college friend who died from HIV/AIDS. Today, his work at the center allows him to independently make policy evaluations and recommendations based on evidence, research and data. He combines deep knowledge and an engaging presence that allows people across the political spectrum to connect with him, Egbert said. “The average Clevelander isn’t going to know what he’s doing on a daily basis,” she said. “And yet, in his own unsung way, he’s touching literally tens of thousands of lives with his work.” — Lydia Coutré
Thirty-five years ago, Jane Daroff, along with Jes Sellers, founded PFLAG Cleveland to help fill an unmet need in the community. Since then, the two have created a 20-member advisory board, ran a monthly support group and carried out community educational programs. Long an ally of the LGBTQ community, Daroff has been a member of that advisory board since its formation and has been instrumental in advancing workplace equality at companies in Northeast Ohio as a PFLAG education and training initiative leader over the years. “Jane has led by doing, taking action when it was needed and sustaining this unquestioned commitment over decades, much to the betterment of her community,” the nomination said. In addition to her work at PFLAG Cleveland, Daroff had a long career at Case Western Reserve University as a social worker in its counseling center. She also served on a provost’s committee that helped create an LGBT Center at the university and started an informal annual mixer at her home for incoming LGBTQ students. She has also been actively involved with advocacy group the Human Rights Campaign over the years, ultimately being named one of the original members of its emeritus council. “Jane has an incredible ability to welcome and embrace people who are new to her, to bring them together and to facilitate the power of personal storytelling,” the nomination said. “Over its 35-year history, PFLAG has served thousands of members of the LGBTQ community in Northeast Ohio and their family members. For many, Jane was the face of the organization when they made their first call to PFLAG for support or when they attended their first support group meeting. Jane’s warm smile and encouraging words have allowed many to find the strength and comfort to open up and share their stories with others.” — Rachel Abbey McCafferty
It took David deBardelaben-Phillips three years while working at the Council of Smaller Enterprises (COSE), but he successfully advocated for Medical Mutual to change its policy and provide domestic partner benefits for LGBTQ families. He did this for the nation’s largest small business health insurance program in 2009, more than six years before marriage equality became the rule of the land. He was then called upon to help create the curriculum used to train businesses about LGBTQ sensitivity in preparation for the 2014 Gay Games. In his private practice and as the founder and president of Energetic Awakenings, deBardelaben-Phillips employs his skills as a health practitioner, educator and life coach, working with clients “to identify blocks and negative patterns of behavior that prohibit them from living their life to its fullest,” according to the company’s website. As the vice president of the board of Plexus, an LGBTQ-focused business organization in Northeast Ohio, deBardelaben-Phillips conducts corporate inclusion training around the region and was a key player in helping fund and hire the National LGBT Chamber of Commerce affiliate’s first executive director. His dedication to equality and inclusion includes working as a racial justice facilitator at the Cleveland chapter of the YWCA, and as a member of the Pastoral Relations Committee at the Pilgrim United Church of Christ, where he provides insights and support to the largely LGBTQ congregation. In his work as a faculty member at the Institute of Core Energetics based in New York City, one of his major initiatives is to update the text book on how to explore biases and be more inclusive. One client said about his work, “David allowed me the safe space and support to let these emotions out and begin to live fully in the present, tall and proud, and to reconnect with my authentic self. I will forever be grateful to this kind, intuitive, beautiful healer,” the nomination stated. — Kim Palmer
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Amy Delp
Diane Feigi
James Graham
Title: Executive director, Population Health Innovation Institute, MetroHealth System
Title: Shareholder, Bonezzi Switzer Polito & Hupp Co.
Title: Executive vice president, chief legal officer and secretary, Cleveland-Cliffs Inc.
Last degree earned: Master’s degree in nursing, Kent State University
Last degree earned: Juris doctor, Cleveland Marshall College of Law, Cleveland State University
Last earned degree: Juris doctor, Case Western Reserve University
When asked by Trans Ohio if MetroHealth would provide space for a transgender job fair, Amy Delp, then vice president for quality and inclusion, was eager to help make the hospital the eventual perpetual host of the event. “Finding a job when you’re a transgender worker can be tough, let alone finding a job where you can feel safe, valued and welcomed,” said Delp, who is now the executive director of population health at MetroHealth Systems. The job fair provides a host of offerings, including interview coaching, dressing for success, opportunities for professional headshots and help with things like creating and updating LinkedIn accounts, she said. The event that matches job seekers with employers who value inclusion and diversity began in 2015 and has consistently attracted more than three dozen companies and community organizations, including large employers such as KeyBank, Cleveland Metroparks, Starbucks, Amazon and Progressive. “It is a horrible thing when people have to live a lie in their workplace,” Delp said. “That is why these issues are so important and it is also important to help others ... to understand these issues.” Delp has been a longtime advocate for the advancement of LGBTQ equality issues at MetroHealth and in health care in general. She is part of W.A.M. (Women At Metro), an employee resource group that is a volunteer, employee-managed group formed to promote an area of interest and add value to MetroHealth’s organizational initiatives, mission and vision. “We need to do more in the community to support transgender people who are under a harsh criticism and the political pressure,” she said. — Kim Palmer
A culture of diversity and inclusion has never been stronger at Cleveland’s Bonezzi Switzer Polito & Hupp Co., thanks to Diane Feigi. Feigi joined the firm a bit less than four years ago after a 14-year trek with BakerHostetler. Now a shareholder in BSPH’s Cleveland office, Feigi’s practice primarily focuses on the defense of nursing homes and other health care professionals facing lawsuits over professional negligence, with some work on toxic tort matters sprinkled in. Besides making an impact with colleagues, clients and opposing counsel in her career — she conducts investigations and leads the team of nurses, paralegals and associates in developing rapport with the staff of clients, “often, a complicated and unrewarding endeavor,” according to the nomination — Feigi has also adopted the mantle of a leader in D&I. Her “cando” attitude is contagious and inspires colleagues and mentees alike. In her few years since joining BSPH, Feigi has instituted a diversity committee, which she serves as its de facto leader, and works with a novel quality of life committee that raises awareness about the needs for balanced and equitable lives. “She is a role model for both gender equality and LGBTQ involvement in the community of lawyers,” according to her nomination. “Inside the firm, she has seen to it that LGBTQ staff, attorneys, clients, etc., enjoy a smooth and all-inclusive opportunity to work for or with the law firm.” Feigi has also been simultaneously developing a special program the firm will support centered on gender equality — something that my be delayed until next spring due to COVID-19 but will be pursued nonetheless. — Jeremy Nobile
As his way of challenging and changing perceptions, James Graham leads by example. From his multifaceted role with Cleveland-Cliffs, his position as president of the Cleveland-Cliffs Foundation and his work on several boards, including Playhouse Square and the American Red Cross, to his service to the LGBTQ community, it’s a wonder he finds time to mentor LGBTQ students and attorneys through his relationship with organizations like the Human Rights Campaign, a leading LGBTQ rights group. Cleveland-Cliffs is a major supplier of iron ore pellets and steel products with pro forma 2019 revenues of $7.8 billion. Graham, who joined the company in 2007, provides integrated legal services to Cliffs’ operating units, its corporate functions and board of directors. In 2012, he became Cliffs’ vice president, general counsel, global operations, and in 2013 became chief legal officer. “James is an asset to Cleveland-Cliffs, and we are very proud of the recognition of his service to the LGBTQ community,” said Lourenco Goncalves, Cliffs’ chairman, president and CEO. “In my 35-year career, few professionals have stood out as much as James Graham as the best general counsel I have had the opportunity to work with.” According to the nomination, Graham considers it a privilege and a responsibility as an LGBTQ executive to lead by example as an out gay man at work, in volunteer activities and in his personal life. Graham is an active fundraiser for several cultural institutions, including the LGBT Center of Greater Cleveland. He’s also on the Hiram College Board of Trustees, the CWRU School of Law Visiting Board and the board of Verb Ballets. He is a cabinet member for the Legal Aid Society of Cleveland’s $10 million capital campaign, a member of the Society of Benchers at CWRU School of Law and in 2018 he received an alumni lifetime achievement award from Hiram College. — Allison Carey
14 | CRAIN’S CLEVELAND BUSINESS | August 24, 2020
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Monica Gustin
Marty Kanan
Rick Krochka
Title: Director of business operations, Greater Cleveland Sports Commission
Title: President and chief executive officer, King Nut Companies
Title: Founder and president, Triad
Last degree earned: Bachelor of Arts in sports management, Baldwin Wallace University
Last degree earned: Bachelor of Arts in communication, Michigan State University
Last degree earned: Bachelor’s degree from Kent State University
As the person responsible for coordinating and submitting the bid proposals for the Greater Cleveland Sports Commission, Monica Gustin has played a major role in one of the most significant periods in the organization’s history. In a three-year span beginning in 2021, the sports commission is scheduled to host the NFL draft, the NBA All-Star Game and the NCAA Women’s Final Four. The productive stretch follows Cleveland being selected to host the 2018 NCAA Division I Wrestling Championships and the 2019 MLB All-Star Game. Combined, the five events have a projected economic impact of $300 million. Gustin, who has been with the sports commission since 2012, also recruited the Stonewall Sports Tournament & Summit to Northeast Ohio. The three-day event, which welcomes all LGBTQ and ally athletes, had been scheduled for July, but was canceled because of the pandemic. Gustin, a board member of the LGBT Community Center of Greater Cleveland, “works tirelessly to advocate on behalf of the LGBT community,” the nomination said. She also plays a key role in planning and leading the annual Pride in the CLE event. “Monica Gustin is a star,” sports commission president and CEO David Gilbert said. “She has grown to be an integral leader for the sports commission in both business development and leading our internal operations transformation.” Gilbert added that Gustin is “a leader in the LGBTQ community” who “helps add to the consciousness of inclusion in all that we do.” When the Women’s Final Four comes to Rocket Mortgage FieldHouse in 2024, Gustin will serve as the executive director of the local organizing committee. The event is a key platform for the NCAA as it promotes equality, diversity and inclusion. — Kevin Kleps
King Nut had 30 employees when Marty Kanan joined the company in 1991. He became president and CEO in 2003 and through his confidence, pride and strong communication skills has earned the company an LGBTQ minority supplier designation. He’s grown the business to one of the nation’s leading suppliers of roasted nuts and snacks with almost 400 employees. If you’ve eaten a packet of nuts on a flight to just about anywhere, they likely came from King Nut, which was purchased in 1989 by Kanan’s father, Michael Kanan. Today, according to the nomination, King Nut, located in Solon, supplies snack products to about 750 million consumers annually. Kanan takes his role as an LGBTQ business owner seriously by creating a safe, positive environment that promotes equality and tolerates no form of harassment. He mentors employees and has promoted several into leadership positions. Kanan worked in the automotive supply industry before joining King Nut. His communication skills have served him well. “Marty is the most charming leader I have ever met,” said Keith Yaugher, senior vice president of purchasing for Marc’s stores. “His way of listening and almost interviewing you like he was a talk show host and you were his guest is an amazing quality that makes him someone everyone wants to follow.” For the past 18 years, Kanan has supported the Human Rights Campaign, a leading national LGBTQ advocacy group, and has donated to the LGBT Center of Greater Cleveland and the AIDS Task Force of Greater Cleveland. He’s served on Cleveland Clinic’s Wellness Board and has participated in fundraising efforts for Cleveland Clinic and University Hospitals. He’s also been a member of the finance committee for the FEST, a local outdoor Christian festival. — Allison Carey
Rick Krochka loves attention so much, he makes a living out of getting it — for others. The founder of Triad in Cuyahoga Falls, Krochka has spent the last 26 years building his marketing and communications firm and its reputation for doing good work — and good works. He and his staff of 10 have won numerous awards for their creative advertising work. Triad also provides pro-bono services to area nonprofits though its Design4Good program to the tune of about $40,000 worth of work a year. The program has granted area nonprofits more than $750,000 worth of work in total to date. In 2019, Triad became a certified LGBT Business Enterprise by the National LGBT Chamber of Commerce. Triad is also a member of Plexus, a Northeast Ohio LGBT organization focused on economic and professional development. Krochka was a founding advisory board member of the Gay Community Endowment Fund of the Akron Community Foundation, for which he now serves in an emeritus role. You can credit Krochka with keeping some local history alive, too. In 2016 he and his firm completed the restoration of the 1928 Falls Stamping & Welding Building in downtown Cuyahoga Falls to serve as Triad’s home. “Rick is a revered community leader who has dedicated his personal and professional life to leaving a lasting impact on our entire region through his time serving on nonprofit boards, philanthropic efforts and mentorship of so many,” Cuyahoga Falls Mayor Don Walters said in the nomination. “Rick’s work on redeveloping and restoring his historic commercial building in downtown Cuyahoga Falls catalyzed revitalization efforts that have transformed our downtown historic district.” — Dan Shingler
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Embracing diversity takes two hands: one of ours and one of yours. At EY, we applaud Joe Matuszewski and all other honorees in Crain’s Cleveland Business first ever Notable LGBTQ Leaders and Executives because we believe the foundation for global success starts with building an inclusive environment.
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Open hearts and open minds will open doors.
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FOCUS | NOTABLE LGBTQ EXECUTIVES
Gregg Levine Title: Senior career consultant, Ratliff & Taylor Last degree earned: MBA, Cleveland State University
DIANE L. FEIGI, ESQ. SELECTED NOTABLE LGBTQ
EXECUTIVE BY CRAINS CLEVELAND
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Guiding people in their careers and protecting human rights have been the focus of Gregg Levine’s life. Currently senior consultant at Ratliff & Taylor, a talent management firm in Independence, Levine provides guidance to executives and other professionals with career transitions. Outside the job, he is active in the Human Rights Campaign and chairs the community relations committee of the Cleveland Jewish Federation(CJF). “Gregg is a leader in every sense of the word,” said Debbie Klein, the Jewish federation’s managing director for community relations, in the nomination. “He listens intently, he feels the pain of those who are disenfranchised and responds with action, and he brings people along. Gregg is an incredible asset to the organizations fortunate enough to call him a lay leader and volunteer.” Levine spent 33 years at BP America, starting, according to the nomination, as a “gas jockey” when it was the Standard Oil Co. (Ohio) and rising through a succession of marketing and human resources jobs. After retiring from BP, he earned an executive coaching certificate from Case Western Reserve University and began a second career at Ratliff and Taylor. While at BP, he worked in London for much of 2012, promoting the company’s sponsorship of the 2012 Olympic Games there. That led to a role on the executive committee of the Gay Games that were held in Cleveland in 2014. According to nominator Michael Jacobson, a longtime marketing executive who is now president of MHJ Consulting Group, Levine’s greatest contribution to other members of the LGBTQ community is his active, open lifestyle. “By being open and speaking out about his struggles and lifestyle changes, Gregg continues to lead by example,” Jacobson wrote. “His story of his struggles lets others know they are not alone or the only ones seeking answers.” In that role, Levine leads discussions at several local Jewish synagogues to help young people and their families who are working to come out. — Jay Miller
Jim Mahon Title: Vice president of marketing and brand management, Akron/Summit Convention & Visitors Bureau Last degree earned: Master of Arts in communication, Michigan State University
Throughout his robust career in hospitality and tourism, Jim Mahon has recognized the importance of acknowledging our differences. In his work for the Akron/Summit Convention & Visitors Bureau and his other affiliations, he’s highlighted a need to better serve Ohio’s LGBTQ community. Mahon joined the Akron/Summit CVB in 1999, took on his current role in 2014 and today he and his team lead a staff of 24 across the bureau and its three other units: the John S. Knight Center, Greystone Hall and Sports Alliance of Greater Akron. “Jim’s strong work ethic, commitment to excellence and respect for others have enabled him to become a highly regarded local and state tourism industry leader,” said Gregg M. Mervis, president & CEO of the Akron/Summit CVB. “Having worked side by side with him for more than two decades, I appreciate his openness, integrity and compassion towards others.” Mahon convinced the organizers of the 2019 LGBTQ Travel Forum to host a panel discussion on transgender tourism marketing in which he premiered a new marketing campaign called “TransAkron: Engage. Inspire. Embrace.” He also played a role in attracting Gay Games IX to Northeast Ohio in 2014. According to the nomination, Mahon easily shares some of his personal story to highlight the importance of equality and respect in the workplace and in the community. Mahon volunteers at the Akron-Canton Regional Food Bank, Family Promise, Akron Rotary Camp, Summit Artspace and High Arts Festival. He regularly engages area high school and college students via presentations, internships and other programs. Education also plays a major role in the mission of the Ohio Travel Association, where Mahon serves as president of the board of directors. He also created the annual Zenith Awards and Hospitality Scholarship Golf Tournament and created the bureau’s LGBTQ outreach initiatives. — Allison Carey 16 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
Joe Matuszewski Title: Partner, assurance services, EY Last degree earned: MBA in accounting, Baldwin Wallace University
Joe Matuszewski has made the pursuit of equality a significant part of his 16-year tenure at accounting giant EY. He became a partner in July 2015 and since has taken on additional responsibilities within the firm, including advancing from engagement partner to coordinating partner, leading campus recruiting initiatives and taking on the role of assurance leader quality liaison. Matuszewski also has supported LGBTQ initiatives within EY locally and nationally. For instance, the nomination stated that he “has been a member of the global LGBT partner/principal steering committee; co-leader of the Americas Unity LBGT+ professional network and executive sponsor of the Northeast Ohio Unity network; and is a representative on the Americas Inclusiveness Advisory Council and Americas Professional Networks Council.” He also “leveraged his experiences in navigating the challenges of surrogacy and fatherhood to increase his impact to others’ challenges in this area,” according to the nomination. The nomination stated that Matuszewski was “a member of the core team” that revamped the Pathways to Parenthood benefits, which provides benefits to cover expenses related to infertility, surrogacy and adoption. He and his husband also were filmed with their daughters in a video called “Pathways to Parenthood: How EY Helps Take Some of the Stress Out of The Parenting Journey.” Through his involvement with Equality Ohio, Matuszewski has promoted Ohio Business Competes, a nonpartisan coalition of businesses committed to achieving nondiscrimination policies at the state level to attract the best talent and to grow Ohio’s economy. He also was “instrumental in working with a small group of residents over an 18-month period that culminated with the passage by the Medina City Council of a fully inclusive LGBTQ nondiscrimination ordinance” in July 2019, the nomination said. Matuszewski “is an exceptional client-serving partner, and his advocacy for equitable treatment for all people has been an inspiring force contributing to our diversity and inclusion efforts locally and nationally,” said Aaron Swartz, EY’s U.S.-Central regions audit network leader, in a statement. — Scott Suttell
Congratulations, Bill Podojil! Crain’s 2020 Notable LGBTQ Executive Vice President of Sales, Label & Packaging Materials, North America
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FOCUS | NOTABLE LGBTQ EXECUTIVES
The MetroHealth System congratulates our very own Notable LGBTQ Leader, Amy Delp, Executive Director, Population Health Innovation Institute. Amy, you live MetroHealth’s values every day through your outstanding leadership and commitment to improving the lives of our patients and our community.
YOUR STORY. YOUR STAGE.
Nancy Mendez
Bi
Title: Vice president of community impact, United Way of Greater Cleveland
Title Ame
Last degree earned: Bachelor of Arts in history, Williams College
Last
For more than a decade, Nancy Mendez has worked for people in need across Greater Cleveland. Her vast experience in nonprofits and her understanding of people’s basic necessities where health, education and financial stability converge, along with her own life experience as a queer woman of color, add to her positive impact on the community. In 2015, through her passion and a strong work ethic, Mendez was promoted to her current role as VP of community impact from her position as director of health. She has hired, trained, promoted and protected LGBTQ professionals for her own team and across departments, according to the nomination. Her mentoring has helped many people advance in their own careers. “Nancy was always my go-to person when having to navigate difficult situations in the workplace,” said Heather Light, manager of corporate and foundation relations for Youth Opportunities Unlimited. “From mentorship and guidance on navigating difficult conversations with a superior or advice on how to be out in the workplace, Nancy was always there to listen and guide.” Mendez’s efforts during the COVID-19 pandemic have been life-changing for many in Cleveland’s LGBTQ community. Through her leadership role with the Greater Cleveland COVID-19 Rapid Response Fund, she’s helped area nonprofits, including the LGBT Community Center of Greater Cleveland and B. Riley Sober House, receive the funds needed for them to provide life-saving programs. Mendez has been recognized by many organizations, including the Ohio Latin Affairs Commission, American Society on Aging and Leadership Cleveland. She has also served on the board of trustees for many groups, including her current role as vice president of the board of Cuyahoga Arts and Culture. In the past, she’s served organizations including the Cleveland Lesbian & Gay Community Service Center, Nueva Luz Urban Resource Center, Hispanic Alliance Inc. and the Cleveland Rape Crisis Center. — Allison Carey
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Phillip Montgomery Title: Chief financial officer, Department of Job and Family Services in Summit County Latest degree earned: MBA, Ohio Dominican University
Phillip Montgomery has spent his career — both professionally and civically — working to lead. As chief financial officer for the Department of Job and Family Services in Summit County, Montgomery is responsible for the management of a $47 million operating budget for the agency. Montgomery “encourages others to be the best version of themselves and brings others along with him,” according to the nomination. That encouragement goes far beyond his staff of six at Summit County and into his work with the LGBTQ community and beyond. While working at accounting and advisory firm BDO earlier in his career, Montgomery was a founding member of the BDO Pride Initiative for LGBTQ staff members and advocates. In that role, he encouraged people to become advocates for diversity and inclusion in the accounting profession. His advocacy work didn’t stop there. Today, Montgomery is the chair of the Gay Community Endowment Fund and has worked to grow the fund to make a larger impact on the Greater Akron Community. He is chair of GCEF’s major fundraiser, the Sugar Plum Tour. He’s also on the steering committee for the Akron Pride Festival and Equality March, which drew more than 20,000 participants in 2019. Montgomery also has long been active in the Akron’s Torchbearers group and serves as a mentor to young professionals. “As a dedicated community advocate, Mr. Montgomery continues to strengthen our local community and support progress to LGBTQ equality,” Summit County Executive Ilene Shapiro said in the nomination. — Sue Walton
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turn grou lead the U D&I gen tran a cr “B son mos to L ronm orie acro and ersh A ery in N 2019 ing serv of G for c
Bill Podojil
Jes Sellers
Bob Sferra
Title: Vice president, sales, label and graphic materials North America, Avery Dennison Corp.
Title: Co-founder, PFLAG Cleveland
Title: Owner, Culinary Occasions
Last degree earned: Doctorate, University of Florida
Last degree earned: Grand diploma in pastry arts, French Culinary Institute
Last degree earned: MBA, Cleveland State University
Bill Podojil stepped into his current role with Avery Dennison in March 2020 after decades of hard work within the company he joined in 1995. It is also his principles of empowerment, inclusion and diverse thinking that have earned him the role as president of Avery Dennison’s North America Diversity & Inclusion Council. Podojil engaged those principles and turned the Graphics Solutions division from a low-growth group into a profitable business. He was then promoted to lead the North America Label and Packaging division, one of the company’s largest, using the same principles. Under Podojil’s leadership, Avery Denison’s North America D&I Council has raised awareness of LGBTQ issues by adding gender identity to the company’s nondiscrimination policies, transgender health benefits for 2021 and LGBTQ inclusivity as a criteria when choosing outside suppliers. “Bill is a valued force for positive change at Avery Dennison,” said Mitch Butier, CEO of Avery Dennison. “He has almost single-handedly increased the visibility of and sensitivity to LGBT+ issues in our workplace, helping to cultivate an environment where all people, regardless of sex, gender, sexual orientation or gender identity, are included and engaged across all parts of our company. ... Our company, our industry and our teams are fortunate to benefit from his passion, leadership and especially his warm and engaging sense of humor.” Among his accomplishments, Podojil founded UNITE, Avery Dennison’s LGBTQ employee resource group that started in North America and now is active in Europe and Asia. In 2019, he started Education Lunch and Learns and other training on LGBTQ issues in the workplace. From 2014-2017, he served as vice president of development for the LGBT Center of Greater Cleveland, where he helped raise over $1.5 million for construction of the center’s new facility. — Allison Carey
Jes Sellers, along with Jane Daroff, founded PFLAG Cleveland 35 years ago, creating an advisory board, a monthly support group and community educational programs. He has served on the advisory board ever since. He has also done a lot of work to advance workplace equality in that time, as well as to encourage new supports for the Latinx and Black communities. Looking toward improvement, Sellers designed and implemented a survey to gauge satisfaction with PFLAG Cleveland’s services. And in recent months, Sellers worked with a committee to create a plan for the group’s 35th anniversary. “He has been involved in every facet of service delivery and instrumental in fostering understanding and support within families and changing hearts and minds throughout Northeast Ohio,” the nomination said. He has also worked as a psychologist for 38 years and long served as director of Case Western Reserve University’s University Counseling Services. While at Case Western Reserve, Sellers also served on a provost’s committee that was foundational to the creation of its LGBT Center. “Jes’ greatest strength is in leading groups. PFLAG Cleveland has served thousands over its 35-year history,” the nomination said. “As co-facilitator of the monthly support group, Jes introduces the meeting, welcomes new participants and facilitates the discussion. This is a confidential group and can be a very emotional experience for those attending for the first time. Jes’ kind, gentle and genuine manner, combined with his professional training, raises the comfort level of new attendees, allowing them to open up and share their story. ... Within the PFLAG community nationally, Jes is recognized as a model for effective leadership.” — Rachel Abbey McCafferty
For some people, making a go of it in the demanding catering business for a dozen years would be enough to fill their plate. But for Culinary Occasions founder and executive chef Bob Sferra, it helps set the table for a host of activities. Sferra has served two terms as chair of the LGBT Center of Greater Cleveland and has been a member of its board since 2009. His first role with the center began a year earlier, when he volunteered for its culinary program for disadvantaged and atrisk youth. As a board member, he helped steer the center through the challenging years after the Great Recession. Most recently, he personally oversaw the setup of the kitchen at the new center, and he and his partner donated $50,000 to it. He also established the Sferra Legacy Fund, intended for future youth programming. Over the years, through several food-oriented fundraisers, he raised more than $350,000 for the center and a variety of community groups. The firm donated more than 2,000 meals to volunteers at the Gay Games in 2014 in Cleveland. Sferra also had the courage to change career directions. The 1996 graduate of John Carroll University with a degree in marketing left what he felt was a promising business career to follow his self-described cooking obsession. In the 1990s, he apprenticed with Cleveland restaurateur Parker Bosley, later studied cooking out of town and served as the chef at several restaurants. Culinary Occasions also has a broad menu of offerings. Besides catering events, it operates a South Euclid pastry shop, offers culinary classes and has run culinary tours, in different years, to France, Italy and Spain. He and Matt Walsh, his partner of 21 years, live in Cleveland Heights, where they are active in the community. — Stan Bullard
Congratulations! James Graham Executive Vice President, Chief Legal Officer & Secretary Cleveland-Cliffs Inc.
for being selected
2020 Notable LGBTQ Executive
The recognition is well deserved. Your colleagues at
August 24, 2020 | CRAIN’S CLEVELAND BUSINESS | 19
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FOCUS | NOTABLE LGBTQ EXECUTIVES
Congratulations
Joshua G. Berggrun
McCarthy, Lebit, Crystal & Liffman congratulates Joshua Berggrun on receiving the Crain’s Cleveland Business inaugural Notable LGBTQ Executives award. Joshua is an associate attorney at McCarthy Lebit who specializes in Real Estate & Construction, Banking & Finance and Mergers & Acquisitions. He provides an important perspective to our firm that greatly benefits our office culture as well as our clients. Way to go, Josh!
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Patrick Shepherd Title: Associate director, Cleveland International Film Festival Last degree earned: Bachelor of Arts, Bowling Green State University
Seen any good movies lately? OK, how about last year? If you saw the really good ones, chances are you were at the Cleveland International Film Festival, in which case you can thank Patrick Shepherd. Shepherd has spent the past 22 years working at the festival, where he now serves as associate director and helps manage fundraising and community engagement. He’s a huge part of the success (in normal times) of the annual event, which has seen annual attendance triple to more than 100,000 attendees since he arrived. His boss and colleague, CIFF executive director Marcie Goodman, credits Shepherd with helping the festival succeed, and much more, with his attitude and energy. “He is everyone’s go-to guy for everything. He is my partner in all things CIFF. He is my moral compass (which I desperately need). And he is an extraordinary human being. At the CIFF, all of our lives are made better because of Patrick,” Goodman said in email correspondence. Shepherd is well known in political circles for co-founding the Cleveland Stonewall Democrats, an organization he led as president from 2000 to 2007. In 2005, he and Stonewall volunteers were instrumental in electing the first three out-LGBTQ elected officials in the history of Cuyahoga County. The following year, Shepherd worked with Ohio Democratic Party chair Chris Redfern to form one of America’s first statewide Democratic Party LGBT caucuses. In 2013, Shepherd was honored for his hard work when he received the Advocacy Award at the LGBTQ+ Heritage Days Awards in Cleveland. Shepherd also was co-chair for Gay Games opening ceremonies in the years leading up to the 2014 event in Cleveland and Akron. Aside from family and friends, Shepherd's passions include off-roading (in Jeeps, of course), traveling Ohio’s 88 counties and the annual Country Concert in Fort Loramie. — Dan Shingler
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Michelle Tomallo Title: Chief people officer, co-founder, FIT Technologies Last degree earned: Bachelor of Science in business administration, Miami University
Michelle Tomallo has used her exceptional people skills to not only build a successful women-founded technology company, but to make real change in the community. Under the guidance of Tomallo and co-founder Micki Tubbs, FIT Technologies, which provides managed IT services, has grown into a thriving business — now an ESOP — with nearly 100 employees. As chief people officer, Tomallo sets the strategic direction of recruiting and retaining diverse talent, especially important in the technology field, where women, people of color and LGBTQ individuals are underrepresented. But Tomallo — described as an intuitive and reflective leader in one of her three nominations for this recognition — takes her people and advocacy skills far past FIT and into the community, where she serves several organizations. Tomallo is board president of Plexus, Cleveland’s LGBT & Allied Chamber of Commerce, where she also previously volunteered as executive director. Under her leadership, Plexus has expanded its reach, impact, community partnership and advocacy work. Tomallo and Plexus have been instrumental to bring to fruition Ohio Business Competes, a nonpartisan coalition of businesses committed to achieving nondiscrimination policies to attract talent and grow Ohio’s economy. She also was on the executive committee for the 2014 Gay Games in Cleveland and was instrumental in getting the games to commit to spending with diverse businesses. As a board member of Engage! Cleveland, she mentors young professionals and works to advance LGBTQ inclusion. She’s also part of the Greater Cleveland Partnership Equity and Inclusion Committee, advocating and building awareness of LGBTQ business owners’ needs. “Michelle is the kind of leaders we need more of — a fearless and friendly advocate who is also an exceptionally successful business owner and a caring mentor to those she supports,” said Dan Moulthrop, CEO of the City Club of Cleveland. — Sue Walton 20 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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AKRON MANUFACTURING
Fairlawn manufacturing firm is treading into new ownership ProFusion Industries, recently acquired by Texas-based group of investors, is ‘re-energized’ BY JUDY STRINGER
Biding time through the COVID-fueled manufacturing downturn may be the final growing pain for ProFusion Industries, a Fairlawn company that has spent the last several years securing its footing as a free-standing operation. ProFusion makes vinyl flooring and step treads for buses and transit systems, industrial matting products, and thermoplastic sheeting and films that are used in a variety of applications. The product line originally was part of B.F. Goodrich Co., but it has changed hands three times over its 70-year history, most recently falling into the grasp of “a combination/ partnership between management and private investors in Texas,” according to CEO Alex Williamson. Terms of the June acquisition were not disclosed. “This is a group of private investors that knew the business though some other transactions, knew (former owner) Peak Rock Capital and felt the time was right to do this deal now,” Williamson said. Peak Rock, an Austin, Texas-based private equity firm, formed ProFusion shortly after its 2014 acquisition of RJF International Corp., a fabricated polymers company started by late
B.F. Goodrich Co. employee Richard Fasenmyer. Williamson said Peak Rock carved RFJ International into two businesses: ProFusion, on the industrial products side, and Koroseal Interior Products, which is “more of a pure play on the commercial wall covering side.” In late 2016, Peak Rock sold Koroseal to Sangetsu USA Inc., a subsidiary of Sangetsu Corp. of Japan. Less than two years later, it recruited Williamson, a Myers Industries executive and 25-year industrial manufacturing veteran, to propel ProFusion forward. Williamson said “substantial operational improvements” aimed at increasing efficiency and safety at the company’s Marietta manufacturing plant was one of two big initiatives his team undertook. “There were some capital upgrades that we made that allowed us to run the equipment more efficiently, but there were also cultural elements to that, challenging paradigms, particularly in terms of, ‘This is the way we’ve always done things,’ ” he said. The other big initiative involved market diversification. ProFusion focused on diving deeper into existing markets while also expanding into new markets.
“WE HAVE SOME STRONG AMBITIONS FOR THE FUTURE.” — Alex Williamson, ProFusion Industries CEO
Williams said the tent and awning market is an example of the latter. The company now supplies a film used in tenting fabrics. It also “re-entered” the general trade matting market, he said, where ProFusion manufactures safety mats and anti-fatigue mats for retail and manufacturing applications. “All of these tend to be niche markets,” Williamson said. “Historically, the business had been fairly customer focused, and we’re creating a bit more of a market focus, so there are new opportunities that we were able to take advantage of because of more expansive commercial efforts in the field.” The changes had begun to pay off, just before the pandemic reared its disruptive head. While Williamson declined to provide specific revenue figures, he said the company saw double-digit gains in the first quarter of 2020 over the same period last year. “That was really the outcome of the hard work we did in 2019 to improve our operational efficiencies and also plant a lot of seeds on the commercial front with respect to diversifying our business.”
Megan Kessler, vice president of finance at ProFusion, said the company’s June sale itself is another indicator that “the key initiatives the team is working on” are moving it in the right direction. “We have some exciting new projects in the pipeline on the sales side and the operation side,” she said, “and we are re-energized with this new transaction in place to work on those projects.” Pre-COVID, ProFusion had roughly 150 employees. Williamson said some of those jobs have been temporarily furloughed as the company, like so many of its peers, has had to “pare capacity to demand.” But he remains optimistic that once the coronavirus crisis lifts, his team will be able to pick up where it left off. “We have some strong ambitions for the future,” Williamson said. “We’ve continued to diversify our business throughout this period, because although this is a tough time, we also view it as an opportunity to level set ourselves so when the base business recovers, we are that much stronger coming out of this.” Contact Judy Stringer: clbfreelancer@crain.com
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AKRON EDUCATION
University of Akron instructor looks to level the playing field Cressman is doing her part to increase presence of women and minorities in engineering BBY ANDREW SCHUNK RUBBER & PLASTICS NEWS
When Heidi Cressman’s daughter received the prestigious Gold Award in Girl Scouts, she told the presenter she wished to pursue a professional career in medicine — to which the presenter replied, “Nursing is a great field!” For young women and minorities, aspirations toward a career in engineering can carry the same stigma as does the pursuit of a medical career: the perception that the field is too intellectually stringent, or that somehow women (specifically) cannot handle the work-life balance that such a career demands. The hard reality, Cressman said, is that pursuing a career in male-dominated fields narrows the perceived opportunities for young women. “The perception for a young woman in medicine is that they will gravitate toward a field in nursing, not as a doctor,” said Cressman, an instructor at the University of Akron and director of the school’s Women in Engineering (WIE) program. “This is societal, and it starts very young: Do you want a pink blanket or a blue blanket? The perception is that women can’t handle the emotional pressure of medicine, and engineering is in just that same mindset.”
Heidi Cressman directs the University of Akron’s Women in Engineering and Increasing Diversity in Engineering Academics programs. | CONTRIBUTED
Women in Engineering was started in 1993 in the College of Engineering by two professors who wished to combat the gender imbalance in the industry. Cressman has directed both the WIE and the Increasing Diversity in Engineering Academics (IDEA) programs since 2007. Both are under the auspices of Diversity and Inclusion in the newly restructured College of Engineering and
Polymer Science, Cressman said. The graduation rates for women in engineering are trending in the right direction, however. When Cressman graduated as a Zip in 1988 with a bachelor’s degree in mechanical engineering (her second bachelor’s degree, with another coming in 1986 in applied mathematics), only 5% of the engineering degrees went to females. When Cressman took over the WIE
and diversity programs in 2007, that percentage had risen to almost 13% for graduating engineers. And imbalances in the academic stage continue in the professional realm, as women are paid less and have fewer executive positions than their male counterparts, Cressman said. The goal of the WIE program is to push the number of women in engineering from the current one-third in the industry to near 50%. “It’s not a quick fix for women or minorities,” she said. “You can’t just snap your fingers. But we’re moving in the right direction. I think the best ideas are generated by the most diverse teams, as everyone brings their professional life experiences. It seems more companies are getting behind these philosophies, and we are seeing that companies with more diverse executive boards are more successful. Women are earning a seat at the table.”
Expanding horizons Women in Engineering is a seminar and discussion course, open to all freshman students. The course traditionally draws between 20 and 30 students per class. The IDEA
course — the second course taught by Cressman with a focus on minority inclusion — is in “temporary hiatus” as it is evaluated, Cressman said, though she does expect it to return. Cressman added she does provide four weeks in the fall semester for minority students, so that they might better adjust to engineering studies. The issue for WIE is retaining the female students who take the course as freshmen, as only about 40% of women who take the WIE class actually graduate with an engineering degree (based on a six-year track). Other schools tout a higher retention rate, Cressman said. “We get kids who aren’t sure if engineering is right for them and we try to make a connection,” she said. “Having that personal connection helps retention. Older students help with mentoring younger students, and that certainly allows us to have a bigger spread of influence.” The kickstarter class, which focuses on study skills and creative thinking as much as smashing the proverbial glass ceiling, also brings in industry executives — and engineering professionals in just their first year out of college — to speak to students. See ENGINEERING on Page 25
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FROM PAGE 1 | SMALL BUSINESS STRUGGLES
COVID-19
From Page 1
Small businesses across Northeast Ohio and the nation are struggling to stay afloat in the face of steep declines in foot traffic and sales. Many are clinging to short-term lifelines in the form of public and private grants and loans. With no certainty about how long the virus will linger — and when consumer confidence will rebound — some entrepreneurs are reluctant to assume debt they might not be able to repay. Others are unable to navigate the paperwork, and the bureaucracy, of seeking aid. More than 360 Cleveland-area businesses have folded since March 1, according to Yelp, an advertising platform used by small enterprises ranging from restaurants to retailers, fitness studios and barber shops. Another 277 local businesses remained temporarily closed as of early July, based on Yelp’s most recent research. Those numbers likely underestimate the casualties, since small businesses are tough to track and often fail with little fanfare. As the pandemic drags on, more retailers and restaurants that pressed pause in March and April are likely to close for good, chipping away at the fabric of urban neighborhoods, suburban business districts and rural Main Streets alike. That’s a worrisome prospect, said Roger Geiger, executive director of the Ohio chapter of the National Federation of Independent Business, a trade association. “It’s pretty darn important about what’s happening to the small business community,” he said, noting that small businesses account for about 50% of private employment in Ohio. “If we get a lot of these companies failing, it’s certainly going to have a huge impact on the economy
of this state and the jobs in this state.” There’s no single definition of a small business. The U.S. Small Business Administration focuses on companies with fewer than 500 employees, but the majority of those employers are much more modest in size. In Ohio, two-thirds of small businesses are single-person shops. The bulk of small companies have no more than 25 employees, Geiger said. Prosperity Jewelry is a two-woman operation with a longtime studio in Midtown, where Zurchin and Bosse now are trying to generate some income by hosting private jewelry par-
“I LOVE CLEVELAND. I WOULD LOVE TO COME BACK TO CLEVELAND. BUT I WANT TO WAIT UNTIL EVERYTHING IS RIGHT HEALTH-WISE.” — Darnell Johnson, owner of Chicago’s Home of Chicken & Waffles
ties and small shopping events. The duo started the business in 1989 and, for 25 years, focused on wholesale clients including galleries, shops and museums. For the last six years, though, the shop at the Arcade was their livelihood. The store first closed in midMarch, when the state ordered some businesses to shut down to slow the virus’ spread. When Prosperity reopened in May, downtown was hushed. Tens of thousands of white-collar workers weren’t coming to their offices. Corporate travel and tourism had dried up. Bosse and Zurchin didn’t see a path forward — even with government loans. “The dollars aren’t there to spend, and people are really afraid of spend-
RESTAURANTS
Ohio restaurant survey
According to surveys by the Ohio Restaurant Association (ORA) between the end of July and early August, if current conditions persist — including bars and restaurants operating at 50% of capacity on average due to physical distancing and having to stop alcohol sales at 10 p.m. per a state mandate — 54% of restaurants said they expect to close in the next nine months. Only 30% said they could make it through a full year, an issue due in large part to reduced capacity alone, which doesn’t even factor in to what extent consumers have the money or confidence to eat and drink out and about. Zaytoon’s business vaporized as former regulars began working from home amid a global pandemic. Shows and events were canceled. Playhouse Square closed. Offices and hotels emptied. Ina feels all of it. Coupled with a state-mandated shutdown in the spring and a riot, downtown foot traffic slowed to a trickle in otherwise peak summer months. A Paycheck Protection Program loan helped Ina pay staff, but that was a bandage never expected to help recoup weeks of losses, let alone survive a newly slow summer. Some days, Zaytoon’s once-thriving lunch rush was bringing in less than $200. “When we reopened for May and June, there were days we’d have a good lunch and I’d feel OK. Then literally the next day it was crickets, nothing,” Ina said. “Any predictability
83%
From Page 1
A recent survey of 107 Ohio restaurateurs found that:
say they do not anticipate breaking even in 2020.
54%
say they will close within nine months at current capacity.
17%
do not anticiapte opening dine-in seating at this time.
52%
report seeing their year-over-year sales declining 20% to more than 70%. SOURCE: OHIO RESTAURANT ASSOCIATION
had gone out the window.” Ina was eating rising expenses on everything from personal protective equipment and hand sanitizer to brisket, all while bringing in less. The business quickly became unsustainable, and Ina made the emotional decision in July to close Zaytoon. He’s considering plans for reopening in the space at some point with a similar concept, retaining fan favorite menu items and serving the office crowds — whenever offices fill up again. In the meantime, his family is circling the wagons around Al’s. “It’s moms and pops who are literally running these types of restaurants,” Ina said. “We just don’t have
ing them,” Bosse said. “That leaves us little guys in the tank. And I wish it wasn’t that way.” Declining sales weren’t the death knell for Chicago’s Home of Chicken & Waffles, which in July closed its 3-year-old location near Playhouse Square. Customers kept the restaurant hopping with carryout orders and, once state restrictions eased in May, limited indoor dining. But owner Darnell Johnson couldn’t be sure that his employees, and patrons, were being safe. Johnson, who is 60 and has lost close friends and cousins to COVID-19, used cameras to monitor the downtown Cleveland restaurant from his Chicago home. After seeing mask slip-ups and missed temperature checks, he decided to shut the doors and put the building up for sale. “I love Cleveland. I would love to come back to Cleveland,” said Johnson, who owns and operates two restaurants in Chicago. “But I want to wait until everything is right health-wise.” Across the country, active business ownership fell 22% from February to April, according to the National Bureau of Economic Research, a nonpartisan, nonprofit group. Black-owned businesses took an outsize hit, with the number of active owners plummeting by 41% — or 440,000 people. Most of those enterprises are small businesses, according to a June report. In Cleveland, one community development professional expressed fear that more than 40% of small businesses in the city could be casualties by the time the pandemic ends. That’s a possibility that keeps neighborhood advocates sleepless at night — and busy at all hours, helping businesses apply for grants and loans, catch up on bills and brainstorm ways to adapt. In Glenville, on the city’s East Side, the pandemic revealed that many deep pockets to sustain long-term.” Pre-pandemic, there were 585,000 bar and restaurant jobs in Ohio alone, according to the ORA, making the sector one of the state’s largest employers. The Ohio industry included more than 23,000 establishments and $25 billion in annual sales. TeamNEO estimates year-over-year gross domestic product in the restaurant business (within its 18-county coverage area) at midyear had already dipped at least 9%, with jobs in the sector down about 20%. Businesses that operate primarily as bars were estimated to be down in those categories about 11% and 25%, respectively. “There may be a lot of closures coming. People who’ve been in the business a long time can’t survive,” said ORA CEO John Barker. “And we don’t know if the industry can get back to (its previous) size when this is all over. Some might bounce back. But some of these patterns might stick.”
Chicago’s Home of Chicken & Waffles on Prospect Avenue in downtown Cleveland shut its doors because of the owner’s concerns about safety risks and coronavirus-related liabilities. Employees and customers weren’t being consistent about mask-wearing and temperature checks. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS
small business owners don’t have computers, printers, websites or email accounts. The neighborhood is one of three places in Cleveland where businesses have received grants not only for rent relief but also for technical help. Cleveland Development Advisors provided the money, which flowed through neighborhood nonprofit organizations like the Famicos Foundation. “I have not had, thank you Jesus,
any businesses close,” said Carolyn Smith, who handles business development for Famicos. “One of the things that has sustained Glenville, we don’t have those high-end businesses that you see on the West Side. It’s a lot of mom-and-pop barber shops, beauty shops, convenience stores that sell alcohol.” But, she said, businesses are frustrated with the slow rollout and red tape surrounding a city working capital
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Soaring costs There are pockets of exceptions to those in the direst situations. Pizza chains like Domino’s and Papa John’s have reported monthly sales increases amid the pandemic of 20% to 30%, for example. Michael LaMarca, owner and CEO for Master Pizza Franchise Group, said while sales have been good, they’ve been bumpy, dropping about 15%25% at the forefront of the shutdown before picking back up. Now, they are starting to slow down again. LaMarca feels that is due to the weekly $600 federal unemployment bonus going away.
24 | CRAIN’S CLEVELAND BUSINESS | AUGUST 24, 2020
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loan program unveiled in May. And Smith is particularly worried about the ability of stores and restaurants at GlenVillage, a city-backed business incubator that opened in late January on East 105th Street, to survive. Without additional government intervention, more small employers are guaranteed to shrink and fail, Geiger said. He noted that it’s challenging to craft aid programs for those businesses, since the landscape of entrepreneurs and companies is so diverse. There’s no one-size-fits-all fix. At Dubick Fixture & Supply Inc. in Midtown, for example, co-owner Any gains are being partly offset by higher costs. Cheese and pepperoni are both up 50%, he said. Disposable gloves are up 500%. “Candidly, this has been the hardest year of my life professionally because of just the constant download of information every day on what’s new, what’s coming next,” LaMarca said. “It’s always changing.” Challenges with safety and higher costs impact fine dining equally, if not more, due to the focus on the in-person experience. Cleveland restaurateur Zack Bruell is adamant about following costly safety protocols, which raises costs. To not do so might not just help spread the virus, but cause worry for those venturing out looking for a safe experience, hurting chances for repeat customers. “The problem that’s been going on since the start since restaurants have been permitted to open up is a lot of people aren’t playing by the rules, and they’re screwing things up for everybody,” Bruell said. “You can’t order a cocktail after 10 p.m. in a bar or restaurant now, and that’s because of these bad actors.” Bruell, whose Cowell & Hubbard is closed in line with Playhouse Square, said his properties, which are broadly down about 50%, will be able to absorb the losses for a while. Just breaking even for the year is the goal, he said, adding that he’s not collecting a salary right now or taking any money out of the business. Those who are over-leveraged or in bad leases could be in trouble, though. The key to surviving prolonged uncertainty will be finding creative ways of
John Cipriani said his biggest challenge is filling openings on his 20-person staff. Few people are expressing interest in the jobs, and applicants aren’t showing up for interviews. The longtime supplier of commercial kitchen equipment and restaurant furnishings continues to see steady demand from nursing homes and other institutional clients. Dining is much more tenuous, particularly downtown. “We don’t need loans,” Cipriani said. “We need customers. We need income.” In the Detroit Shoreway neighborhood, on Cleveland’s West Side, a handful of small businesses have closed. But new tenants including a burrito joint and a tattoo shop are planning to open in and near the Gordon Square Arts District. Some existing retailers are shifting their business models to survive. Superelectric Pinball Parlor, for example, hasn’t reopened. But the arcade and bar’s owners recently began booking private parties. They’ve also sold off the occasional pinball machine to raise cash. A crowdfunding campaign in the neighborhood has amassed more than $27,000 for small business grants. Anonymous donors are willing to match up to $50,000 in contributions. The grants already have helped more than a dozen restaurants, artists and stores catch up on rent and pay backlogged bills, filling holes that loans wouldn’t necessarily plug. “The businesses that are willing and can take on debt, and who have the capacity to provide all the documents the financers need in order to get a loan might be able to make it,” said Jessica Trivisonno, economic development director for the nonprofit Detroit Shoreway Community Development Organization. “But bringing in revenue, he said, while trying to control soaring costs. “If we make money this year,” Bruell said, “that would be a miracle.”
Sobering times After nearly 38 years in operation, traffic was trending down at Akron nightclub Thursday’s Lounge, possibly due to evolving tastes among a younger, often-alternative crowd it was known to draw with bands, booze and bar food. Margins are “nowhere near their heyday” of the ’90s, said owner Mario Nemr, who shut Thursday’s this month. Nemr also owns Mr. Zub’s Deli and The Matinee at Highland Square. But he’d worked nearly three decades at Thursday’s and had become attached. He could’ve “toughed it out” a few more years, he said. But the pandemic was the last straw. “With (COVID-19), it’s just like, this is so much out of our hands. There’s so much uncertainty right now. It’s frustrating. I’m owning this business and having no say in what the future is,” Nemr said. “We can’t have a large crowd. Can’t have shows. You can’t even have karaoke.” He said Gov. Mike DeWine’s order to halt alcohol sales at 10 p.m. only made matters worse. He now closes his stores at 11 p.m., eliminating an entire night shift that used to work until 3 to 4 a.m. serving revelers, night owls and second-shift workers. “The neighborhood likes to party,” he said. “I’m losing that whole crowd.” Mr. Zub’s will be OK for now, Nemr said. And he’s hopeful a tenant he’s
that’s not a lot of small businesses.” In July, sisters-in-law Izzy and Amy Gingerich opted to shutter their Detroit Avenue yoga studio rather than go into debt. They’d opened Forest City Yoga in mid-January, after a year of preparations. Barely two months later, the state forced them to close. As weeks stretched into months, the outlook was increasingly bleak. Virtual classes weren’t going to pay the bills. And the fledgling company didn’t meet the requirements for various aid programs. The studio reopened in late May,
“WE DON’T NEED LOANS. WE NEED CUSTOMERS. WE NEED INCOME.” ——john Cipriani, co-owner of Dubick Fixture & Supply Inc.
but coronavirus restrictions combined with consumer anxiety to cast a pall over a business that had barely taken root. The Gingerichs, who never quit their day jobs, watched coronavirus cases spike and feared another shutdown. On July 26, the 34-year-old entrepreneurs closed the doors on their dream. “We don’t know if we would have succeeded,” Izzy Gingerich said. “We weren’t open long enough. … We didn’t even have the opportunity to fail. It would almost be different if we knew we did something to make this happen.” Staff reporter Jeremy Nobile contributed to this article. Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe leasing the former Thursday’s space to will be successful with a hookah bar he intends to put in. But the future of The Matinee, he said, is “up in the air.” Alex Budin, owner of Ohio City bar JukeBox, said he has tried to be as creative as possible amid the pandemic, but sales still are down 85%. Though it’s effectively been closed to the public, Budin has been running Jukebox as a one-man show since March. Like many, he pivoted to curbside pickup, selling orders of beer and wine, even cases of La Croix and bundles of his handmade, frozen pierogies. (He wants to get those into stores.) But Budin is spending more to make less, and it’s not just food costs. Coolers he bought to store pierogies have doubled in price. The plexiglass barriers he’s installing inside — he’s only reopening the patio for now and has a system to take walk-up orders — has tripled since June. Reopening for outdoor seating feels like starting a new business from scratch, Budin said. In many ways, that’s exactly what it is. “I’ve described it as resetting to zero,” he said. “The foundation was seven days a week, evenings, late nights. We’d do 60% of business for the entire week in three days. But we don’t have the ability to go late anymore. We can’t put the amount of people in here we used to.” He said he’s making plans to survive into 2021 but will have to re-evaluate in the coming months. “I do think we’ll make it into next year one way or another,” Budin said. “But it’s not going to be the same.”
ENGINEERING
From Page 23
“They talk about their experiences. If you want to go to the top, you need to know it’s not going to be a straight climb,” Cressman said. “You have to do a bit of jungle gym maneuvering.” Students journey into the field as well, with tours of engineering, rubber and plastics facilities, and summer camps that focus on such “real-world” applications. “We’re working with Marathon right now and Goodyear wants to do tours with both younger and college-level students, and we are always open to what’s available locally,” Cressman said. As students learn that virtually everything in engineering has constraints — time, the availability of materials or money — they learn to accept that no design will be perfect, another tenet of engineering. “That’s what makes engineering fun,” Cressman said. “There is an importance on quality and safety. How do we improve the quality of life and the community’s quality of life?” An eight-week project that spans much of the WIE semester introduces the creativity often required in engineering to circumvent these constraints. Last year, Cressman gave her class a bubble blower machine, a fishing reel and a fidget spinner. Students were charged with taking these items apart and creating something useful with them. “The goal is to get them to think creatively,” Cressman said. “They don’t always know the answer, there’s not always an empirical conclusion, but they look at how things go together and try to come up with a solution. It’s open-ended. But by the end, they all build something and present it — and this can help them overcome their fears and challenges.”
Why gender imbalance? Cressman said that after 13 years with the program, she thought “she might have worked herself out of a job,” thinking perhaps that the gender gap and its associated stigmas would be archaic thoughts by now. That is not yet the case, and Cressman said it is important to keep up the momentum. “Like-minded groups produce like-minded results, which can limit profits for companies,” she said. “Women sometimes shy away from intellectual pursuits, and we need to encourage kids who are interested in high-level academics.” For women in engineering, imbalances are evident in salary and the number of influential role models, and there is a tendency of teachers to push women into stereotypical fields. Cressman noted that though women and men are offered equal pay in their initial job offers, at some point the salaries bifurcate to a 7% difference. “With salary we are not quite there yet,” she said. “Men and women get the same offers, but as it moves forward, a 7% difference shows up.” In addition, women sometimes are not given as “rigorous” or impactful projects in the working world, and as a consequence young women have fewer role models from which to draw their own leadership styles. And even though women tend to be better at mathematics than men,
Cressman said teachers tend to push women into fields that offer fewer opportunities — such as biomedical as opposed to mechanical engineering, or biology rather than physics. “All engineering helps people,” she said. “At a career fair they may see three biomed opportunities and choose those, when there are many more opportunities in a mechanical engineering field. They say they don’t want to work on mechanical stuff, and this is both a function of society and the industry — how they were brought up to think.”
Pandemic forces cuts It is no secret that UA is going through tough financial times due to the coronavirus pandemic, with one trustee describing the recent loss of 178 jobs and $65 million in cuts as “a bloodbath.” Fortunately for WIE, there have not been any personnel cuts, but the situation “is far from ideal,” Cressman said, and reductions in daily operations are likely. The Diversity and Inclusion Department always has operated on a shoestring budget, she said, a margin made more dire by the pandemic. “We are in desperate need of scholarship money for students whose parents lost their jobs and other financial difficulties,” Cressman said. “I have been down this road before and it requires some creativity, but it will be OK. Our outreach programming and scholarships have always relied on money from grants, foundations and private donors, so our efforts to find these sources will remain steadfast and our development officers work very hard to help the program succeed in this regard.” Cressman said the department has many “wonderful” industry partners, private donors and alumni who already have reached out to support diversity programming. “Our current president, Gary Miller, and interim dean Craig Menzemer also are both extremely supportive of diversity and inclusion efforts, and so we do not expect to see any decrease in personnel,” she said. Opportunities for “real-world” learning have been affected as well, as many outreach programs like summer camps and research work with the prestigious Polymer Science Institute at UA have ceased, and companies have canceled their tours. Even dorm space has been at a premium, with UA hosting frontline hospital workers who could not return to their homes. Cressman said WIE will be back in the fall, practicing social distancing guidelines and mask-wearing. There also will be an online component to the class for students who get sick or require quarantine. “This program has always been one that is built on helping students to succeed,” Cressman said. “That will not change. My office will still be open, students will still be able to discuss the challenges that they face or share their successes with me, and it will be done in a way that keeps them safe and comfortable. “Day-to-day interactions,” she added, “may have to go virtual at times and so will the hugs, but I will be there for my students come hell or high water.” Rubber & Plastic News is a sister publication of Crain’s Cleveland Business.
August 24, 2020 | CRAIN’S CLEVELAND BUSINESS | 25
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CRAIN’S CLEVELAND BUSINESS
Advertising Section
PEOPLE ON THE MOVE
To place your listing, visit www.crainscleveland.com/peopleon-the-move or, for more information, contact Debora Stein at (917) 226-5470 / dstein@crain.com
CONSTRUCTION
INSURANCE
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Westfield
The Mechanical and Plumbing Industry Council proudly announces two new presidents to their respective non-profit Hattenbach construction trade association boards. Cathy Hattenbach was elected President of the Mechanical Contractors Association of Cleveland, Inc. (MCA). Currently, she is the President of Hattenbach Co. MCA represents over 85 mechanical contractors, all of whom are signatory to Pipefitters Local 120. Dan Miller was elected President of the Cleveland Plumbing Contractors Miller Association (CPCA). He is currently the President of Miller Plumbing and Heating Co. CPCA represents 45 plumbing contractors, all of whom are signatory to Plumbers Local 55.
FINANCIAL SERVICES
Ancora We are very happy to announce that Michael Bradac has joined Ancora as an Assistant Vice President in Investment Operations. Michael will assist the Operations group, specifically with investment operations through the various software utilized for portfolio accounting, customer relationship management and client portal access. He previously served as an intern for the firm and earned a Bachelor of Science degree in Finance with minors in Economics and Statistics from John Carroll University.
Jennifer Palmieri joins Westfield as Chief People Officer. In this new leadership role, Jennifer will advocate for employees and the company, ensuring employees are supported & empowered to make a positive difference in the lives of customers. With 20+ years of human resources leadership experience, Palmieri leads Westfield’s talent management strategy, people related practices, and the HR team with a strong focus on building diversity across the workforce and ensuring an inclusive culture.
LAW
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From Page 1
“CCPL is consistently highly rated among all libraries serving the United States,” said one health professional and election watcher. “It has the lowest tax rate among all of our county libraries, including those independently serving both the individual communities and the Cleveland system,” she said. “The levy initiative appears well-justified by the facts I have accumulated.” The November ballot will include a levy that proposes a 1-mill increase to the continuing 2.5-mill levy that supports 27 branch libraries that serve 47 Cuyahoga County communities. The proposed 1-mill tax increase would add to the continuing levy that funds 70% of the library’s operations. The increased millage would add about $35 a year to the tax bill on a $100,000 house. Residents in seven communities, including Cleveland, Euclid and Westlake, do not vote on, or pay for, the county library system. They have their own libraries, which are paid for through their own local tax levies. Libraries in those communities, like in most communities, receive strong support from voters. GCP’s decision carries weight, especially because another important group, the League of Women Voters of Greater Cleveland, will not make its levy endorsements until September. In announcing its decision to withhold support to the library levy, GCP said it opposed what it saw as a permanent 40% increase in the library’s tax revenue in what it viewed as an “increasingly uncompetitive tax environment” but that it would have considered a short-term increase if CCPL “leads discussions among peers around aggressive restructuring” — in other words, the merging of library systems. Marty McGann, GCP’s executive vice president for government advocacy and strategic initiatives, said GCP considered this a substantial increase. It’s also what’s called a permanent increase, meaning the county library does not have to go back to voters at any time for renewal. The decision, McGann said, reflects “the sentiment of our members who have seen the growth (in levies) and — granted, we’ve supported a number of them — have questioned that growth.” At the same time GCP gave CCPL the thumbs-down, it announced its support for a levy placed on the No-
The Cuyahoga County Public Library is seeking a 1-mill tax increase that would support 27 library branches. | CUYAHOGA COUNTY PUBLIC LIBRARY
vember ballot by the Cleveland Metropolitan School District (CMSD). In July, the district’s board of education unanimously approved putting a renewal of a 15-mill levy and 5-mill increase on the Nov. 3 ballot. The levy would come up for renewal in 10 years. GCP said in a news release that, “Due to the importance of the CMSD levy for future generations, and an increased level of accountability
IN ANNOUNCING ITS DECISION TO WITHHOLD SUPPORT TO THE LIBRARY LEVY, GCP SAID IT OPPOSED WHAT IT SAW AS A PERMANENT 40% INCREASE IN THE LIBRARY’S TAX REVENUE IN WHAT IT VIEWED AS AN “INCREASINGLY UNCOMPETITIVE TAX ENVIRONMENT.” through a 10-year term, the GCP’s Board of Directors moved to support the November CMSD levy increase because the initiative addresses a severe and urgent societal need.” For its part, the library system declined to discuss the GCP decision. However, Hallie Rich, CCPL’s communications and external relations director, said in an email that CCPL has discussed mergers with the East Cleveland and Shaker Heights libraries in recent years, but in both cases, the libraries declined to consider a merger. She also pointed to state law, which does not allow county libraries to initiate mergers. “Cuyahoga County Public Library has been responsive to exploratory efforts” by communities in recent years,” she said. “We are not in a posi-
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tion to force any library to join CCPL because inclusion must be initiated by the local community.” Rich also noted that CCPL is ranked No. 1 among large library systems around the county by the trade publication Library Journal. In the Library Journal’s 2019 Index of Public Library Service, CCPL placed first among libraries with budgets above $30 million a year. The Cleveland Public Library placed third. In its survey of more than 6,000 libraries, only 261 earned Library Journal’s top honor in various classes. Jose Feliciano, a member of GCP’s Government Affairs Council, which reviews tax levies, disagreed with the decision not to support the library levy. “They are operating under the presumption that Cleveland is taxed higher than comparable cities,” said Feliciano, a retired partner at the Baker Hostetler law firm and chairman of the Hispanic Roundtable, who reviewed an EY tax study commissioned by GCP. “It might be more expensive, but I don’t know that I would call it materially more expensive.” A management consultant who has advised corporations on business expansion decisions pointed to a Brookings Institution study on the impact of taxes on site-selection decisions. “Tax rates are considered after the more basic location analysis — and then only to rule out places that are ‘out of line’ on key factors such as corporate income taxes, personal income taxes, unemployment tax and workers compensation,” the report stated. “The only other time taxes figure heavily into the equation is when a company is choosing among sites within a metropolitan area, where all the other factors are equal.” Another GCP policy council member, who would only speak anonymously, said the system, where each organization makes its own pitch for tax levy support, puts organizations like GCP in a difficult position. “None of the levy beneficiaries is unworthy,” he said. “However, you have a system that (requires) votes on each levy separately. It would be good if we went the other way: Decide how much tax burden is sustainable and then allocate it among the various claimants. So being an organization that may have to say ‘stop,’ means you have to decline to support things that might be worthwhile.” Hill agreed, saying he believes there is an increasing level of exhaustion among organizations that are asked to support and pay for ballot levies in Cuyahoga County, and that those organizations see too many levy requests that don’t have a high enough level of cost control and outcome measures. “I see this as more of a shot across the bow of those organizations who go to the ballot,” he said. Jay Miller: jmiller@crain.com, (216) 771-5362, @millerjh
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CRAIN’S CLEVELAND LOOK BACK | THE DEMISE OF THE CLEVELAND PRESS
Cleveland presses on as a one-newspaper city Cleveland became a one-newspaper town on June 17, 1982, when Joseph Cole, owner of the afternoon daily, The Cleveland Press, announced the paper had printed its last edition, ending a 103-year run and costing 900 people their jobs. It left Greater Cleveland with only one major daily newspaper, the morning Plain Dealer. At the time, the six-day-a-week Press had a circulation of about 316,000, while the PD had a daily circulation of 405,800, and nearly 100,000 more on Sunday, when it was the only paper delivered. When he announced the closing, Cole, who had purchased the newspaper less than two years earlier from the Scripps-Howard chain, said the failure was the result of hard economic times and insufficient advertising, at a time when advertising typically covered 80% of a newspaper’s revenue. — Jay Miller
``THE HISTORY
``IN THEIR OWN WORDS
The Penny Press hit the streets of Cleveland on Nov. 2, 1878. Detroiter Edward Wyllis Scripps and a cousin had raised $10,000 and moved to Cleveland. His plan was to create a newspaper selling for one penny to attract a broader audience than its competitors — two-penny newspapers that attracted an elite audience. Within three years, it had more circulation than all of its competitors combined. The Press called itself “the newspaper that serves its readers.” Others called it a crusading newspaper, fighting for the underdog. When it hit its 50th birthday in 1928, Roy Howard, who then led a chain of 25 Scripps-Howard newspapers, named Louis B. Seltzer editor of the flagship paper in Cleveland. Over the next 38 years, Seltzer raised the profile of the paper, favoring the hiring of people who grew up in, and cared about, Cleveland. Along the way, Seltzer built a reputation as a political kingmaker. Then came the murder of Marilyn Sheppard, the wife of Bay Village doctor Sam Sheppard, in the early morning hours of July 4, 1954. She was bludgeoned to death by a weapon that was never found. The Press pinned the murder on Dr. Sheppard and made a crusade of it. It even ran a series of Page One editorials beginning days after the murder — one, written by Seltzer, was headlined, “Somebody Is Getting Away With Murder.” The paper’s coverage of the trial would eventually play a significant role in a Supreme Court decision that set a new, higher standard, for pre-trial publicity. Time magazine ranked the Press among the country’s top 10 newspapers in 1964. But soon it would lose its place at the top of the local news heap, eclipsed by the morning Cleveland Plain Dealer. In 1980, Scripps-Howard sold the paper to local businessman Cole, who extended the Press’ life by nearly two years.
“It is with great sorrow and disappointment that I must announce that, as a result of continuing and significant losses, we are ceasing publication with today’s final edition. Our decision to cease publication is not because of lack of desire, spirit or effort. The times were simply against us.” ——Joseph Cole, owner of The Cleveland Press, on June 17, 1982
New Publisher Joseph E. Cole walks in front of the Cleveland Press building in 1980, shortly after he bought the paper. | THE CLEVELAND PRESS COLLECTION/CLEVELAND MEMORY PROJECT
``WHY IT MATTERS TODAY Television was in its infancy at the time of the Sheppard murder trial, but its evening news reports would soon threaten newspapers, especially afternoon newspapers like the Press, for the attention of news consumers and advertisers. Cleveland was one of five cities to lose its afternoon newspaper to television news over a 13-month period in 1981 and 1982. The other papers to close were the Buffalo Courier-Express, The Philadelphia Bulletin, The Minneapolis Star and The Washington Star. As the internet bloomed in the 1990s, websites such as Craigslist, Facebook and Google began drawing away news readers and advertisers. While several newspapers with national audiences, notably The New York Times and The Wall Street Journal, continue to thrive, local news is withering. A series of studies by the University of North Carolina, under the umbrella title, “The Expanding News Desert,” has chronicled the decline of print news.
“It is a fact of life in the newspaper business these days that only one newspaper will survive in most, if not all, major metropolitan regions and, with few exceptions, the survivor will be published in the morning. ... The Plain Dealer has had a majority of the local advertising, and that tilt has been getting stronger.” ——Editorial in The Plain Dealer, June 18, 1982
The Press published its last edition on June 17, 1982. | JAY MILLER/CRAIN’S
Since 2004, the United States has lost one-fourth — about 2,100 — of its newspapers. This includes 70 dailies and more than 2,000 weeklies or nondailies.
“I always concluded that Louis Seltzer was the last newspaper person in this town who could singlehandedly elect or unelect people, especially mayors. He was the last truly influential power broker.” ——Brent Larkin, former journalist for The Cleveland Press and The Plain Dealer, on WKSU-FM, June 2012
THE WEEK ROUND AND ROUND: President Donald Trump called for a boycott of Akron-based Goodyear after an image circulated on social media that listed “acceptable” and “unacceptable” workplace attire and messaging — with MAGA hats in the unacceptable camp. Goodyear said the visual in question “was not created or distributed by Goodyear corporate,” though it didn’t specify the image’s source. The tiremaker said it asks employees to “refrain from workplace expressions in support of political campaigning for any candidate or political party, as well as other similar forms of advocacy that fall outside the scope of equity issues.” TEAMING UP: The Cleveland Clinic and Aetna will offer new plans that
Excellence program to Aetna plan sponsors. In 2017, the Clinic announced a co-branded insurance plan with Oscar Health, the health system’s first big play in the insurance business.
President Donald Trump called for a boycott of Goodyear tires after the company told employees that political messaging apparel like this “Make America Great Again” hat are unacceptable attire for work. | MARK WILSON/GETTY IMAGES
aim to reduce health care costs for participating employers and expand Aetna members’ access to Clinic providers. Their collaboration includes launching a co-branded in-
surance plan, an expanded relationship nationwide, the formation of an Accountable Care Organization model and the deployment of the Cleveland Clinic’s Cardiac Center of
BIO TEST: Two biorobotics pioneers at Case Western Reserve University will lead a five-year, $8 million National Science Foundation project to further explore challenges scientists face in making more lifelike and responsive robots. The project is part of a $50 million endeavor enlisting 70 researchers from four countries to investigate how brains work and interact with their environment. The CWRU project will examine how the nervous system in animals coordinates and controls environmental interactions.
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