Issuu

SPECIAL REPORT: CORPORATE BOARDS Racial diversity in boardrooms remains woefully poor, but women make some gains. PAGES 8-12

LOOK BACK: Evolution

CRAINSCLEVELAND.COM I November 2, 2020

of the Cavs PAGE 31

REAL ESTATE

Industrial Commercial Properties buys Geauga Lake land Menards, more retail and multifamily housing planned for Bainbridge Township BBY STAN BULLARD

The time is here to say final goodbyes to remnants of Geauga Lake Park and Sea World. However, it’s also time to say hello to the Geauga Lake District. That’s the new name for 377 acres in Bainbridge Township that circle the namesake inland lake, and the name that the property’s new owner, an affiliate of Industrial Commercial Properties (ICP) of Solon, will use for it. ICP plans to play the role of master developer of the site, including installing elements that recall the original amusement park dating from 1887. The sale for an undisclosed amount on Friday, Oct. 30, to ICP ends the era of Sandusky-based Cedar Fair LP’s ownership of the last of the vast site, which includes the former Sea World property. It follows Cedar Fair’s sale of another whale of a site carved from the former amusement park in Aurora to PulteGroup of Atlanta. Chris Semarjian, the owner of ICP, said in an online interview, “We are a family here in Greater Cleveland. We want it to be something great and leave a legacy. Geauga Lake is a fairly large body of water, a spring-fed lake. There have not been too many developments like this in our market.” See ICP on Page 28

ICP developers, from left, Austin Semarjian; chief operating officer Chris Salata; and owner Christopher Semarjian are on location at Geauga Lake. | KEN BLAZE FOR CRAIN’S CLEVELAND

MANUFACTURING

New steelmaker is 173 years in the making BBY RACHEL ABBEY MCCAFFERTY

When Lourenco Goncalves took over the leadership of what’s now known as Cleveland-Cliffs Inc. in 2014, it was a global iron ore producer. Today, it’s well on its way to becoming a major U.S. steel company. That was always Goncalves’ goal for the 173-year-old company. Goncalves, who is chairman, president and CEO of Cleveland-Cliffs,

said he didn’t share that part of his vision publicly at first, because he wasn’t sure it would come to fruition. “I don’t promise what I can’t deliver,” he said.

Goncalves

See CLIFFS on Page 27

GOVERNMENT

Filling the pandemic gaps State will provide $10,000 in Small Business Relief Grants program BBY KIM PALMER

With about two months left to spend nearly $1 billion in federal Coronavirus Aid, Relief and Economic Security (CARES) Act funds, Ohio authorities passed a $419.5 million aid package. The bulk of it, $125 million, is going to help small businesses. Ohio’s Small Business Relief Grants (SBRG) of $10,000 will be available for businesses with no more than 25 employees to help

mitigate the financial damage from the COVID-19 outbreak and subsequent economic downturn. The state’s plan focuses on smaller businesses and is designed to be a “quick shot” to boost the economy as it contends with the pandemic, according to Lydia Mihalik, director of the Ohio Development Service Agency, which will distribute the funds. “We want to get the $125 million out to those who could most use $10,000 right now,” Mihalik said. “Businesses with 500 employees

cannot do as much with $10,000 as a smaller business would.” The program prioritizes distributing the grants to smaller businesses that may have missed other federal relief efforts such as the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL) initiative. It’s designed, as Mihalik puts it, “to make sure that there was some sense of regional distribution.” See RELIEF on Page 29

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Six Personal Considerations Before Selling a Business PRESENTED BY: JOE DIROCCO, Regional President, Northeast Ohio

usiness decisions are often intertwined with the impact they’ll have on the family, and business owners must understand the dynamics and value drivers of both—as well as how they overlap. It’s a strategic benefit to have a team of professionals who understand the valuation aspect of selling a business, in addition to having wealth expertise, during all stages of your business sale. This is especially true if you can find a team that can tailor its recommendations based on your goals and needs. There are several personal and professional questions you may consider prior to selling your business, including:

1. What do you need from the sale? Many business owners intend to fund retirement from the sale of their business, and they’re accustomed to cash flow from their day-to-day business activities. It may, therefore, be important to think about what aftertax proceeds are necessary to support your future needs. A key variable for this analysis is understanding what your business is worth. An M&A advisor who understands the market and your industry may be best suited to help understand your valuation along with helping to evaluate strategic alternatives for the business. A thirdparty valuation specialist (many accounting firms have these groups) may also provide a market valuation, and these types of reports are often used for wealth planning purposes ahead of a formal sale process.

2. How does the sale fit into your estate plan? Tax and estate planning can be important topics to think through, and wealth transfer strategies may provide opportunities to save on both income and estate taxes. Transferring ownership interest to family members, trusts or other entities before the sale may help you take advantage of allowable valuation discounts and can reduce transfer taxes later. Transfers such as these are commonly weighed against future needs

and often considered nine to twelve months before any sale of the business, if not two to three years prior. “In my experience, the most successful transitions occur when the planning starts, long before the owner has any serious intention of leaving the business,” says Troy Farmer, Regional Director, Wealth Planning at Fifth Third Bank. “Early strategic planning that coordinates both income tax planning as well as estate transfer tax planning can increase the eventual value of a business while minimizing tax impacts. It can help ensure that the owner can sell to their preferred buyers. And it can help them achieve their financial goals after the sale.”

3. What are your charitable intentions? If you have charitable intent, strategic charitable giving can provide additional opportunities for tax savings. For instance, a charitable tax deduction in the same year that you sell your business may help offset the gains you incur. Depending on the type of business entity and the individual’s tax and cash flow circumstances, business owners might consider donating shares of the business to a charity, donating cash from the sales of the business, establishing a charitable trust that provides a lifetime income stream, or creating a donor advised fund or a private foundation that can be used to distribute charitable contributions in the future.

4. What does the sale mean for you and your family? As a business owner, you may have devoted your life to the business—growing it into a successful organization. Are you ready for what will be a major change? Have you determined what the sale will mean for children who may have been involved or planned to be involved in the business? Will an increase in wealth affect the family’s values and governance? How does the business owner educate their descendants on handling wealth? You may consider how your dynamic may change and grow from the event.

5. Is your business handling any of your personal affairs?

Owners may have business expenses that were handled through the business, but that serve both business and personal purposes. Consider, for instance, a vehicle purchase. Once you sell the business, those expenses will fall to you again and the personal assistance will end—and these factors should be a part of the financial modeling for the sale. “Evaluating desired cash flow post-sale will provide an estimate of the assets the business owner will need to achieve his or her goals and the amount of proceeds needed from the sale,” says Farmer. “That cash flow should account for personal expenses previously paid by the business as well as future expenses such as travel, a vacation home, to account for the owner’s desired lifestyle in retirement.” Some business write-offs will become personal expenses. If your wealth is significant, you may want to consider a family office or other assistance with financial affairs.

6. Will you start another business? What will your life look like after the dust has settled from this business sale? Are you headed into retirement, or will you put the proceeds into your next venture? What will you do with your time? Some options include devoting your time to travel, or becoming an angel investor to help the future generation of entrepreneurs start their own enterprises. Creating an action plan can help you mentally make the transition from your current endeavor to the next stage. As you’re considering these essential points, it’s important to have the right professionals in the early stages. That may include investment bankers, lawyers and accountants. To assemble your core team, consider looking for financial institutions that can serve as a strategic fit and bring to the table a variety of professionals who can help you determine what’s best for you, your family and your business from both a business operation and a wealth planning standpoint. Now is a great time to evaluate your options for your business and your wealth planning needs. Fifth Third Bank can assist you with the future planning for your business and beyond by putting you in contact with team members qualified to support your specific needs.

Fifth Third Means Business™ 53.com/CommercialBank

This content is for informational purposes only and may have been derived, with permission, from a third party. While we believe it to be accurate as of the date of publication, it does not constitute the rendering of legal, accounting, tax, or investment advice or other professional services by Fifth Third Bank, National Association or any of its subsidiaries or affiliates, and it is being provided without any warranty whatsoever. Please consult with appropriate professionals related to your individual circumstances. Deposit and credit products provided by Fifth Third Bank, National Association. Member FDIC. Fifth Third Private Bank is a division of Fifth Third Bank, National Association, which is an indirect subsidiary of Fifth Third Bancorp. Banking, investment and insurance products and services are offered through or made available by one or more of Fifth Third Bancorp’s indirect subsidiaries. Investments, investment services, and insurance: Are Not a Deposit | Are Not FDIC Insured | Offer No Bank Guarantee | May Lose Value | Are Not Insured by Any Federal Government Agency CS4818109 Insurance Products made available through Fifth Third Insurance Agency, Inc.

HEALTH CARE

VOCA cuts occur during ‘perfect storm’ of hits to nonprofits Ohio organizations that support crime victims have had share of funds drop $49M since 2019 Ohio VOCA awards drop

BBY LYDIA COUTRÉ

After an influx of money for several years from a federal fund to help crime victims, nonprofits providing direct support for victims are facing dramatic cuts in funding. The organizations — serving victims of domestic violence, sexual assault, human trafficking and trauma in Northeast Ohio — are cutting staff, rethinking physical space, streamlining services and searching for more financial support as COVID-19 continues to stretch philanthropic capacity. The Victims of Crime Act (VOCA) of 1984 established the fund, which ebbs and flows with deposits from criminal fines, penalties and other fees collected by federal courts and the Federal Bureau of Prisons. The federal money is distributed to states’ attorneys general, who then award grants to agencies serving victims of crime. In just two years, Ohio’s portion of the fund was cut roughly in half to $55.5 million this year. The grants come in a year when the pandemic has skyrocketed needs for philanthropic support, significantly restricted fundraising abilities with the cancellation of in-person events and added costs for these nonprofits. “This is the perfect storm of crisis for nonprofits, and the VOCA cuts were just the icing on the cake,” said Terri Heckman, CEO of both the Battered Women’s Shelter and the Rape Crisis Center operating in Summit and Medina counties, which combined received $1.3 million. The total was a 45% cut to each of the affiliated nonprofits — far greater than the 15% to 20% cut for which they had braced. Domestic violence shelters, rape crisis centers, trauma recovery centers and others in Northeast Ohio have had to make fast adjustments since the cuts went into effect with the new grant cycle, which began Oct. 1. Nonprofits have long known VOCA funds would not remain at the heightened levels they’ve seen in recent years since Congress raised the cap on what could be distributed to the states, but the depth of the cuts this year were greater than anticipated. “We knew that we could not be over-reliant on VOCA forever; we knew eventually there would be cuts to VOCA,” said Sondra Miller, president and CEO of the Cleveland Rape Crisis Center. “We weren’t expecting such dramatic cuts this soon.” The Ohio Attorney General’s Office in 2017 used VOCA funding to create a network of Trauma Recovery Centers in the state, including one at Circle Health Services (now affiliated with The Centers for Families and Children), which focused on supporting Black victims of crime, particularly those who have experienced domestic violence and sexual assault. This year, Circle Health lost all of its VOCA funding for that center, which served 573 people in the last fiscal year. Without it, the nonprofit won’t be able to offer these services at all, other than some counseling services, said Eric Morse, president and CEO of the Centers and Circle Health. “People we’re currently serving,

VOCA dollars awarded in Ohio for fiscal year 2021 are down 46.8% from a recent high in 2019. $120M

$104.5M

$100M Beckman

$80M $55.6M

$60M $40M $20 0

The Cleveland Rape Crisis Center provides services to all survivors of rape and sexual abuse, including a crisis and support hotline, hospital support, victim assistance, counseling and more. | TODD H. CARLSON/CLEVELAND RAPE CRISIS CENTER

County by county: Northeast Ohio VOCA grants Due to changes in the federal pool of money that is distributed to support services for victims of crime, VOCA grants awarded to counties in Northeast Ohio — and across the state — have dropped precipitously from fiscal year 2019 to fiscal year 2021. The fiscal years begin in October. County

Percent change, FBY 2019 to FBY 2021

-30% to -39%

Lake

Lorain

Cuyahoga

-40% to -49% -50% to -59%

Medina

Geauga

Portage Summit

SOURCE: OHIO ATTORNEY GENERAL’S OFFICE

Cuyahoga Geauga Lake Lorain Medina Portage Summit OHIO

VOCA funds awarded FY 2021 % change FY 2019

$8,963,897 $664,824 $627,847 $1,136,175 $204,910 $1,270,070 $3,828,428 $55,565,622

-52.37% $18,818,248 -38.09% $1,073,776 -46.27% $1,168,430 -37.73% $1,824,510 -37.55% $328,127 -42.03% $2,190,995 -43.51% $6,777,651 -46.82% $104,489,793

CRAIN’S CLEVELAND BUSINESS GRAPHIC

“WE KNEW THAT WE COULD NOT BE OVER-RELIANT ON VOCA FOREVER; WE KNEW EVENTUALLY THERE WOULD BE CUTS TO VOCA. WE WEREN’T EXPECTING SUCH DRAMATIC CUTS THIS SOON.” ——Sondra Miller, president and CEO, Cleveland Rape Crisis Center

we’ll continue to provide some counseling to them, but our ability to respond on a 24/7 basis, our ability to provide transportation assistance and housing assistance is completely gone,” he said. They’re working to transition clients to adequate safe housing by the end of the month. This cut has ripple effects beyond Circle Health clients. MetroHealth’s Trauma Recovery Center, another VOCA recipient that saw a 39% cut this year, worked closely with Circle Health, which provided the bulk of emergency housing for the domestic violence and gun violence victims. Because the center is part of a large

health system that can fill gaps at least for now, the cuts aren’t as dire for the center. But Sarah Hendrickson, director of MetroHealth’s Trauma Recovery Center and its Center for Health Resilience, said while she’s hopeful and grateful for any cushion, she doesn’t want to rely on it, especially with financial pressures the pandemic has placed on health care providers. Cleveland Clinic also received grants totaling $192,000 this year (a 78% cut from 2019) and is in the process of determining the impact to services. University Hospitals received a total of $584,000, which is a 39% cut that will affect program expansion,

“PEOPLE WE’RE CURRENTLY SERVING, WE’LL CONTINUE TO PROVIDE SOME COUNSELING TO THEM, BUT OUR ABILITY TO RESPOND ON A 24/7 BASIS, OUR ABILITY TO PROVIDE TRANSPORTATION ASSISTANCE AND HOUSING ASSISTANCE IS COMPLETELY GONE.” ——Eric Morse, president and CEO of the Centers and Circle Health

’17

’18

’19

’20

’21

SOURCE: OHIO ATTORNEY GENERAL’S OFFICE

but the system will be able to continue to operate at full capacity.

Years of growing grants For several years, VOCA distributions grew substantially, which was transformational for some organizations, but some were hesitant to lean too heavily on the temporary boost. With the stream of cash it received from VOCA in the past few years, the Battered Women’s Shelter and the Rape Crisis Center operating in Summit and Medina counties were “able to help really transition lives and not just Band-Aid them,” by expanding services, raising staff salaries, adding wraparound services and improving infrastructure, including moving to a new shelter location without acquiring debt, Heckman said. The Journey Center for Safety and Healing (formerly the Domestic Violence and Child Advocacy Center of Cleveland) used the funds to help open the Canopy Child Advocacy Center, but avoided other expansions into new service lines, said CEO Melissa Graves. The Cleveland Rape Crisis Center’s VOCA grants ballooned as more funds were made available, climbing to more than $4.6 million in 2018 and $4.3 million in 2019. Miller said this allowed the organization to grow staff, services, locations and the number of people it served. Then came this year’s cuts.

‘Lost half of our projected revenue’ The Cleveland Rape Crisis Center took a 55% cut in its VOCA grant this year and lost funding from United Way of Greater Cleveland, which has in recent years retooled its approach to allocating grants. Add in fundraising limitations and “we lost half of our projected revenue in 120 days,” Miller said. “Almost like $3.4 million out of a $6.8 million budget this year.” In anticipation of VOCA cuts, Miller decided the center would leave its downtown office and sublease the space through the end of its lease in 2025 with no immediate plans to return downtown. This was possible in part due to the introduction of telehealth services during the pandemic and the center’s several satellite locations, including one that opened in September in Clark-Fulton and a drop-in center for survivors of human trafficking expected to open

Hendrickson

early next year. Journey Center also lost some of its United Way of Greater Cleveland funding. Between that and a 36% cut from VOCA, Graves had to cut $840,000 from its $4.5 million budget. The center eliminated or didn’t fill 11 FTEs. Meanwhile, she is facing rising costs of remote working technology for staff, cleaning supplies, PPE and shelter meals as it shifted away from the cost-saving approach of family style meals. Plus, the center had to reduce the number of people in shelter for the sake of social distancing and pay for alternative housing to continue to get people to safe places. Genesis House Shelter, the domestic violence shelter in Lorain County, received more than $300,000 in VOCA funding at its peak, a substantial influx of cash for the nonprofit’s roughly $1 million budget, said executive director Virginia Beckman. She focused the funds on one-time expenses that wouldn’t add annual costs, including making rooms wheelchair accessible and purchasing a new van. Still, this year’s 32% cut was greater than the 20% she budgeted and has meant letting a legal advocate go. She’s trying to access other funding that she knows might be a long shot, such as grants from national grocers that may be willing to fund groceries for her shelter. Cuts at the Battered Women’s Shelter and the Rape Crisis Center operating in Summit and Medina counties meant cutting 18 staff members this month. Heckman pulled all staff from the courthouse that helped people getting protection orders and dropped the minimum number of on-duty crisis intervention staff in the shelter from two to three. She also cut all eight staff on her outreach team, which during COVID-19 shifted from in-person community outreach (raising awareness, looking for volunteers and getting resources to victims) to helping in the shelter with new needs, including supporting kids’ homeschooling. On top of all of these losses, COVID hasn’t stopped victimization. Many worry that domestic violence, which crosses all demographic boundaries, is growing as people are isolated at home, facing financial stress and general uncertainty. Some victims may not be able to find privacy to call for help. Heckman said people have come to the shelter after months of being manipulated into thinking all shelters had COVID-19 outbreaks. Graves said she is hearing from survivors that abuse is escalating in frequency and severity. “This really is a very dangerous time when there is more need for child abuse, sexual assault, domestic violence (support services) and we’re experiencing a big decrease,” she said. Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre

November 2, 2020 | CRAIN’S CLEVELAND BUSINESS | 3

EDUCATION

Northeast Ohio private colleges’ challenges go beyond pandemic Enrollment declines are leading schools to examine new income streams and cost-cutting measures

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Some experts predicted the economic hit the coronavirus continues to level would shutter small colleges across the country. While that hasn’t happened in sweeping degrees, early data shows undergraduate enrollment at private, nonprofit four-year institutions reportedly is down 2% nationwide this fall compared with 2019. That’s slightly worse than public universities, which have seen a 1.4% decline. The pandemic has laid bare challenges that tuition-dependent private colleges in Northeast Ohio and their peers across the country already were facing, forcing many to think about new income streams and other cost-cutting measures as they navigate the future. A big reality of the present is that small colleges are continuing to deal with a dwindling amount of local first-time freshmen to recruit. Roughly 137,100 students graduated from Ohio’s high schools in 2011, according to data compiled by the Western Interstate Commission for Higher Education. The group estimates that number will continue to decline, eventually dropping to about 109,600 graduates by 2032. That makes even more vital the students — and their tuition dollars — who ultimately do choose to stay and enroll at one of these regional institutions, especially in the current landscape. Many may be drawn to the sense of community, personal attention or extracurricular opportunities that enrolling at one of these campuses can provide. Crafting that same environment has been challenging during the pandemic, given the reliance of online

learning for those who didn’t return to campus or the need for social distancing measures for the ones who did. “I think that’s clearly one of the areas where we see smaller colleges really being impacted, because the sentiment that we all have is what we do best has been taken from us,” Ashland University president Carlos Campo said. Six years after Moody’s gave Ashland University a junk bond rating, this past spring brought what Campo said were COVID-induced salary cuts and a reduction in hours for many faculty and staff. He added that money from the CARES Act and donations have helped to ease the hit the school took from lost auxiliary fees after the pivot to online learning. Room and board can be an important additional income stream for small campuses. The university also “sunset” several offerings in July, working to phase out undergrad programs in areas such as geology and economics. Ashland’s faculty senate president, Dan McDonald, said the way administrators communicated decisions surrounding that process and a “breach of trust” helped trigger a no-confidence vote in Campo earlier this year. “The faculty were convinced, and remain convinced, by all the data that there really is no money to be saved in sunsetting those programs,” he said. “All of those were revenue-generating programs.” But Campo said the days of colleges having a restaurant-style menu of program options probably doesn’t make sense. “I think one of the things that many schools like Ashland are realizing is that you have to be great at

what you’re great at,” he said. Campo added, “I don’t know how many schools can afford to have a four-year German language program long-term.” Other schools in the region are making similar moves. Over the past few years, Ursuline College in Pepper Pike has “braided” some separate programs together, such as history and political science, officials said. Total enrollment rose 5.3% this fall compared with the like period in 2019. The impact of either an uptick or a downturn can be amplified on a campus’ bottom line when its population is small, though Ursuline’s president, Sister Christine De Vinne, said there is one benefit of having just roughly 1,100 students on-campus in the time of a pandemic. “Our faculty can track each student, and if they’re having difficulty, we know it almost instantaneously,” De Vinne said. Nearly half of first-time students at Ursuline receive a Pell Grant, according to figures compiled by Edmit, a service that aims to help families navigate the financial aid process. That’s higher than Ashland’s reported rate of 35%, the national average at 31%, or John Carroll University’s 20%. De Vinne also pointed to the strength of the college’s nursing offerings, saying that about half of the undergraduate students are enrolled in that program. She added that an accelerated nursing program for those who already have a bachelor’s degree is doing well. Expanding health programs is an option leaders at John Carroll are looking at for growth as well. President Michael Johnson highlighted the University

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Call it a skills gap, a talent gap or an interest gap — the phrasing doesn’t much matter. The bottom line is that workforce development is a critical issue for manufacturers today. A new project being led by nonprofit consulting group MAGNET in Cleveland aims to bring its peers together around that issue. MAGNET, the Manufacturing Advocacy and Growth Network, is part of the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). Recently, MAGNET was part of a group that received funding for a project called America Works, which aims to create a database of workforce development initiatives at the centers across the country. America Works will be led by Matthew Fieldman, who was previously

the vice president of external affairs at MAGNET. Fieldman, who now is the executive director of America Works, is still with MAGNET, and the America Works initiative is based there in Cleveland. Fieldman has been thinking about the idea behind America Works since his first year at MAGNET in 2015. As MAGNET was launching its own workforce development programs, he was hearing about other interesting programs at national conferences. “And there was no formal way to communicate best practices, lessons learned, mistakes made and failures that we’ve experienced and learned from,” Fieldman said. He thought there should be. That idea grew into America Works. The project recently received funding from the institute’s Competitive Awards Program. According to a news release, this most recent round

of funding is going toward 12 gifts totaling about $11 million. That includes the America Works project and an advanced technology-related program being led by the Ohio Manufacturing Extension Partnership. America Works received a $1 million, three-year grant. The project is technically being overseen by Missouri Enterprise, that state’s MEP center. In addition to MAGNET, partners include MEP centers in Iowa, Indiana and New Jersey. The Competitive Awards Program focuses on projects that will help the entire network of MEP centers, said Mary Ann Pacelli, division chief of network learning and strategic competitions at the institute and former assistant director of workforce development at MAGNET. That includes projects focused on creating new materials or programing. In the past, NIST MEP used to do that kind of

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Heights campus’ proximity to the “medical mecca” of the Cleveland Clinic. Ultimately, though, these colleges’ biggest incentive may just be to do what it takes to increase net tuition and fee revenue by enrolling more people. A recent Moody’s sector outlook found that nearly 75% of private institutions surveyed are anticipating net tuition revenue to fall as enrollment declines and tuition discount rates increase. The report said private campuses “are also facing fierce competition from lower-priced public alternatives as student preferences shift amid the pandemic.” At John Carroll, where total fulltime equivalent enrollment dropped 5.75% from the previous fall, the university is doubling down on marketing efforts, Johnson said. “Those who know John Carroll love John Carroll, but not enough people know John Carroll,” he said. He said the university is spending “significantly” more money on the push, zeroing in on both reputational and digital marketing campaigns. That includes highlighting success stories of alumni, too, drawing on a strong base that has alum chapters in

“I THINK IN SOME WAYS, IT’S REALLY HELPFUL TO MOVE THAT EPICENTER OF MANUFACTURING EDUCATION AND MANUFACTURING KNOWLEDGE OUT OF D.C., OUT OF THE FEDERAL GOVERNMENT, INTO THE MEP SYSTEM AS A WHOLE, WHERE WE’RE REALLY GETTING OUR HANDS DIRTY AND WE’RE REALLY DOING THE WORK.”

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about 20 cities nationwide. Johnson said alumni members of the college’s board of trustees pledged to double their personal contributions this year. The board collectively allowed a one-time dip into its endowment, valued at $228.7 million as of June 30, to help with pandemic-related expenses. “We have never been worried about the longevity of the university because we’re in a stronger position than other institutions,” Johnson said. “But we are dealing with a lot of historical problems that other institutions also have.” Rick Staisloff, founder and senior partner at college consulting firm RPK Group, agrees that the challenges schools now face existed prior to this year. “Institutions are really waking up to this idea that they’re not going to be able to just sort of wait out the impacts from COVID,” he said. “They’re going to have to start looking at some more significant kinds of changes in the years ahead.” He expects some of the moves may include things like aligning programming to what students really want, creating more cost-effective delivery,

——Matthew Fieldman, executive director of America Works

development at the federal level, but it’s faster and more efficient to have that innovation happen at the center level, Pacelli said. The America Works project fills a need, Pacelli said, allowing the network to share workforce development solutions and to identify gaps in that space. “It’s the elephant in the room for every company right now,” she said. This type of knowledge sharing took place on an informal basis in the past, but in recent years, NIST MEP has worked to create more of a “true network” of centers, she said. America Works will create a national survey to gauge what workforce development efforts are already happening at MEP centers across the country, and what participants want

to learn in that space, Fieldman said. Those efforts will then be collected into a searchable national database. From there, the centers will be able to reach out to their peers to learn more. “So that’s what the vision is: every program just a few clicks away,” Fieldman said. In addition to the centers themselves, Fieldman will work to draw on resources available from outside partners. Webinars and conferences are also part of the planned programming. MAGNET is trying to innovate at all levels right now, Fieldman said, through programs like America Works and through the plans for its new headquarters. MAGNET plans to purchase and renovate a former Cleveland Metropolitan School District building to serve as its new headquar-

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or regional colleges strengthening consortial relationships to streamline offerings or administrative tasks. In a recent plea to congressional leaders for more federal help, the American Council on Education’s president wrote that additional furloughs and layoffs are 11-2-SVN planned at Ad-Nicole-Ground Lease.indd 1 universities of all sizes nationwide. Let your goals be your guide The letter pointed out that many institutions are the largest employer in their communities, something that’s Modesto “Moe” Ruggiero Ruggiero especially true for small colleges in Managing Director– Wealth Management more rural locales. Wealth Management UBS Financial Services Inc. Earlier this month, New York Senior Portfolio Manager 600 Superior Avenue East State’s Ithaca College announced it Wealth Advisor 27th Floor would slash about 130 faculty jobs because of enrollment drops. Cleveland, OH 44114 “For the first time, colleges aren’t modesto.ruggiero@ubs.com 216-736-8317 going to be able to play around the edges to make the revenue and expense equation work,” Staisloff said. “It’s going to impact not just staff positions, but, I project, increasingly ubs.com/team/ruggiero faculty positions.” He forecasts any big shifts will see a slow rollout, but some could begin As a firm providing wealth management services to clients, UBS Financial Services Inc. next fall. offers investment advisory services in its capacity as an SEC-registered investment adviser

Your future. Our focus.

Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

ters and prototype lab. The district approved the sale in late October. Beyond the benefit to the MEP centers, America Works’ connection to Cleveland will be an important one, Feldman said. MAGNET’s existing initiatives in workforce development — like its Early College, Early Career program that connects high school students to local manufacturers — gives it a strong foundation to share with the network. And that could help further build the city’s reputation as the nation’s “manufacturing education capital,” Fieldman said. “I think in some ways, it’s really helpful to move that epicenter of manufacturing education and manufacturing knowledge out of D.C., out of the federal government, into the MEP system as a whole, where we’re really getting our hands dirty and we’re really doing the work,” Fieldman said. “We’re not talking at the 20,000-foot level all the time. We’re saying, ‘Hey, we’ve done really good work in reentry. Here’s the curricula. Here’s how we engaged employers.’ ”

10/23/20 12:55 PM

and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/relationshipsummary. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. CJ-UBS-2031105874_4 Exp.: 10/31/2021

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FROM THE PUBLISHER

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

Our promise: We’ll keep you informed

EDITORIAL

BWC at work F

ast, aggressive and decisive. Those aren’t necessarily words that apply to our state government, but they’re apt when it comes to a request made by Gov. Mike DeWine to the Ohio Bureau of Workers’ Compensation to send up to $5 billion in dividends to Ohio employers to ease the heavy financial impact of the COVID-19 pandemic. DeWine made the request on Wednesday, Oct. 28, and by Friday morning, Oct. 30, the audit committee of BWC’s board met to give the proposal a first reading. The committee will meet again on Monday, Nov. 2, for a second reading, and then the full board will vote on — and by all indications, will approve — the measure. That would get the rebates in employers’ hands before Christmas. Private and public employers in Cuyahoga County are in line to receive a collective $528 million. BWC has done this a lot in recent years, including twice already in 2020, with a $1.54 billion rebate in April and $1.34 billion in October. But this new rebate would be the largest ever from BWC, and it would represent about four times the total premiums the agency collected from employer members in the 2019 policy year. THIS NEW REBATE WOULD It would bring total dividends for employers this REPRESENT ABOUT FOUR year to nearly $8 billion. TIMES THE TOTAL (As an aside, we wish the state had been as expansive PREMIUMS THE AGENCY when it came to Secretary of COLLECTED FROM State Frank LaRose’s request for $3 million that would EMPLOYER MEMBERS IN have paid for postage on all THE 2019 POLICY YEAR. returned absentee ballots for the election, a proposal shot down in September by Republicans on the state Controlling Board. We get it — different agency, different circumstances. But it says a lot about priorities.) BWC’s distribution is possible because a still-strong stock market has produced ample investment returns for the agency, which also is benefiting from declining annual claims. Keep making those workplaces safer, everyone. The distribution is entirely appropriate in the face of the precarious situation businesses still face. We got some welcome news last week when gross domestic product grew 7.4%

in the third quarter, a quarterly gain that equals a record annualized pace of 33.1%. But don’t kid yourself. Hiring is improving, but at a slower rate than before. More federal government stimulus isn’t on the way. COVID cases are surging. This help via BWC for Ohio employers is vital. We’d caution, though, that it might not be so easy to go back to the BWC well in 2021, particularly if a stock slump curtails investment returns. Embrace it for now — but be on the lookout for the state to be more creative next year.

I hope this note finds you and your loved ones safe and well. In early October, I enthusiastically took on the role of publisher of Crain’s Cleveland Business. I am reaching out today to introduce myself, but also to thank you for being loyal readers and advocates for our brand. As I immerse myself in the details of the Crain’s business, I am increasingly Mike impressed by the relationship we have SCHOENBRUN with you, our readers — from business up-and-comers to our market’s most influential leaders — regularly consuming our content online, in print or in-person (Zoom for now). We realize you have many choices on how you will access your business news. Our goal is to ensure that we remain your go-to source for Northeast Ohio business news and informa- OUR GOAL IS TO tion, and we will continue to in- ENSURE THAT WE vest in the brand to that end. As we look ahead to 2021, REMAIN YOUR GO-TO we realize many of you will be SOURCE FOR facing challenges, whether you are a subscriber, advertis- NORTHEAST OHIO er or both. Please note that we BUSINESS NEWS AND are your partner. We value your business, and we are INFORMATION. ready to collaborate with you to keep our businesses community connected, strong and informed. Should you have any questions, please feel free to reach out to me at mike.schoenbrun@crain.com or 216-771-5174. In the meantime, please stay safe and happy reading!

Mike Schoenbrun Publisher, Crain’s Cleveland Business

PERSONAL VIEW

Doing their research Anti-competition hurts C

ase Western Reserve University sent a strong message about the value of innovation and research/industry collaborations with its selection last week of Eric W. Kaler as the institution’s next president. Kaler will start next July, so he’ll have plenty of time to gear up for the CWRU gig. (He won’t have to make any adjustment for Cleveland winters, since he’s the former president of the University of Minnesota.) CWRU’s incoming leader is a chemical engineer by training, which makes him a good fit for the research-focused university. During his tenure as Minnesota’s president from 2011 to 2019, CWRU noted, he boosted research expenditures substantially, from $749.1 million to $1.013 billion — an increase of 35%. In that same period, CWRU said, “business and industry research funding climbed from $55.2 million to $81.6 million,” about 48%. Some of the research growth stemmed from a program Kaler pushed called MnDRIVE, for Minnesota Discovery, Research and InnoVation Economy, that helped direct state funding to University of Minnesota research in “areas that aligned with industry needs and statewide challenges,” CWRU said. Those areas included robotics and advanced manufacturing, and treatments for brain conditions and cancer — all of which are critical to further developing a tech-focused, growth-oriented economy in Cleveland. Kaler told the Minneapolis Star-Tribune that his “strong belief in the power of research” drew him to the CWRU job. We look forward to what the focus brings when Kaler gets to Cleveland.

Executive 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

payments security BBY RON GRAFF JR.

It’s been seven months since COVID-19 forced Ohio’s 950,000 small businesses to quickly adapt and innovate. Curbside pickup for retailers, contactless carryout for restaurants, and even virtual test drives for car dealers are now not only necessary, but expected. But convenience is not the only thing that should be top of mind for Ohioans. Payments security is key, given our Graff is vice current economic climate. Over 644,000 president of Ohioans have filed for unemployment operations for since March — now would not be a great Columbiana time for them to be a victim of card Foods and past fraud. But the U.S. leads the world as the chairman of the most credit-fraud-prone country. And Ohio Grocers the problem is getting worse — fraud Association. cases doubled from 2017 to 2019. One processor shared that May 2020 was a record-setting month for card fraud attempts — they saw attempts jump 32% month over month.

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 GRAFF on Page 7

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

6 | CRAIN’S CLEVELAND BUSINESS | November 2, 2020

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OPINION

GRAFF

From Page 6

Making payments more secure isn’t as simple as deploying the latest and greatest technology. EMVCo, the payments standards setting body run by card companies like Visa and Mastercard, stands in security’s way. This duopoly is putting their profits over payment card security. It’s also putting the survival of Ohio’s 7,000 retailers, and the 1.5 million jobs they provide, at risk. Innovations to make payments more secure exist, but EMVCo is hampering their deployment. One example is “tokenization.” The concept is simple: During checkout, your credit or debit card’s account number is replaced by a more secure “token” number. Open, proven tokenization standards exist, but EMVCo rejected those and launched their own proprietary specifications protecting Visa and Mastercard’s dominance. Another example is “end-to-end encryption.” This keeps your data safe from the time your card is dipped or tapped to the time it reaches the intended recipient. But EMVCo’s encryption standards were developed without any input from merchants or consumer protection groups, again benefiting Visa and Mastercard. One innovation is especially relevant in the COVID-19 environment: “near-field communications,” or NFC payments. NFC is the technology that lets you “tap” a card or phone to pay at checkout. Unsurprisingly, usage of “contactless” payments like tapping an NFC-enabled card have surged in the U.S., increasing by 150% since March 2019. But while NFC may be more convenient for customers, it can be a headache for merchants. It can be unwieldy and expensive, especially for mobile payments. Worst of all, it was forced onto merchants by EMVCo — helping Visa and Mastercard, rather than letting the market decide what next-generation payments type was most secure.

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This behavior is unfortunately nothing new. EMVCo has routinely sacrificed payment security to increase • Property Management Visa and Mastercard’s transaction volume. About five years ago, “chip” cards began replacing the incredibly • Real Estate Brokerage outdated “magnetic strip” cards. (That’s nearly 20 years • Facilities Management after “chip” was introduced, if you’re curious.) Rather than implementing the more-secure “chip-and-PIN” • Construction Management authentication standard that’s reduced card fraud across the globe, EMVCo insisted on “chip-and-signa• In-house Legal Counsel ture,” all to protect Visa and Mastercard’s market share. The way EMVCo rolled out “chip” cards here in the U.S. also hampered competition in the payments space. Debit networks facilitate payments made between card-using customers and merchants. U.S. debit networks compete for both bank and merchant business. This competition has driven innovation and greater security throughout the industry. However, yet again, EMVCo chose profits over security and allowed Visa and Mastercard to essentially block merchant access to any of the competitive debit networks. It took the Federal Reserve and Federal Trade Commission stepping in before Visa and Mastercard changed their practices to acwww.naipvc.com tually compete in the open market for business and allow a retailer to pick the debit network that offered the greatest level of security to run transactions. René Pelegero, president and managing Director of the Retail Payments Global Consulting Group, argues, “EMVCo’s ownership by the credit card companies has put profits ahead of security ... and has left the United States with a fraud-prone payments card system even as fraud has been reduced in the rest of the world.” We agree — and we deserve better. When given a choice, Visa and Mastercard have picked profits over security innovation every time. We need open standards — EMVCo must allow businesses to meaningfully contribute in standards setting so the U.S. payments ecosystem can adapt to the COVID-19 environment and keep payments secure.

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LETTERS TO THE EDITOR

Proper funding needed for long-term care facilities Ohio’s long-term care facilities provide safe, high-quality care for more than 400,000 of the state’s most frail, elderly citizens. While the COVID-19 pandemic may be unprecedented, the industry’s commitment to providing compassionate, resident-centered care is unwavering. But this critical work requires adequate resources. Eliza Bryant Village, a nonprofit incorporated in 1896, is the oldest African-American-founded long-term care facility that remains in operation in the country. Through our skilled nursing, adult day care, home care, affordable housing and elder abuse services, we care for more than 1,000 seniors each year. However, inadequate public funding severely hinders our long-term capacity to meet the needs our predominantly Medicaid-eligible residents require and deserve. Many media stories have rightly focused on COVID-19’s impact, but far fewer address the obstacles long-term care facilities face. Nonprofit nursing homes need fair financial reimbursement from government sources and less restrictive support from foundation and other private funders. Recent research reported on in the Chronicle of Philanthropy documented that nonprofits led by minorities and focused on minority issues, such as Eliza Bryant, are typically awarded less funding, with more strings, than their majority-led counterparts. This too needs to change. COVID-19 has shined a light on many deficiencies in our elder care systems, which need to be addressed. However, one way we can all ensure older adults are properly cared for when they need it most is to substitute for that nameless, impoverished senior, the face of someone we love. Danny Williams President and CEO of Eliza Bryant Village

Media spreads panic over COVID (In response to Elizabeth McIntyre’s Oct. 19 column on Sokolowski’s University Inn being put up for sale): Why is it that people in media continue to try to spread panic over the COVID crisis? It is a terrible, highly contagious disease that is not nearly as deadly as the media portrays. First, we were told that we needed to stop the spread to stop hospitals from being overrun. When that never materialized, you focused instead on number of cases — and said that wearing a mask will prevent the spread. Yet,

since all of Ohio has been under a mask-wearing mandate, the number of cases has continued to rise. Why? Because the disease is extremely contagious. BUT not deadly as the media tries to propagate. Your own quoted statistics say that more people have died of this than from the Korean and Vietnam wars combined. That is simply a scare fact. How many during those combined 10 years of war as compared to coronavirus is meant simply to scare. That more than 5,000 Ohioans have died is very, very sad. But how many of those are over 70 and had pre-existing conditions? Now don’t go running out with, “He doesn’t care about our Ohio citizens over 70.” That, too, is the lie you folks promote when you disagree with our position. Many of my friends and I are in the at-risk category, and so we take precautions. But look at the real numbers. Let’s round up to 250,000 people die from COVID. (The number isn’t that high, but let’s use it.) How about a spin that says, of all the residents in the U.S., only 0.0007% have died from COVID — considering the U.S. population is about 330 million. This means, and should be stated, as there is almost no chance you will die from COVID — and your chances jump by nearly three times if you have a pre-existing condition and are over 70. Two things on that. For those under 70, your chances are one-third of that number. Just as importantly, even for those over 70, tripling the number doesn’t get you to anything but a 0.002% chance of death. There is enough negative information out there every day. Don’t look at how bad things are. How about a look toward something positive for a change. This kind of reporting is why Sokolowski’s has failed, like many small businesses, due to COVID. It is the warped COVID reporting that caused them and many other small businesses to fail. Even today, there have been 8.8 million cases of the virus in the U.S. Out of 330 million residents, that works out to be 0.002% of the U.S. population tested positive. That is NOT how many actually showed symptoms. That is tested positive. Now go ahead, and tear these numbers apart and show the negative: It is what you and the media do best. Because it doesn’t fit the narrative. So very, very sad. Dan Traci Westlake

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MORE IN THIS SPECIAL REPORT ``Q&A with C-Suite executives on the need for and benefits of board diversity. PAGE 9

``40% of new board members in NEO in the past two years are women. PAGE 10

CORPORATE BOARD DIVERSITY

A seat at the table, but barely

ELLEN WEINSTEIN FOR CRAIN’S CLEVELAND BUSINESS

Racial diversity in board rooms remains woefully poor ``BY JEREMY NOBILE | While both women and racial minorities continue to be underrepresented in corporate board rooms, it’s the latter that continues to be left out the most, with women of color faring the worst. It’s a trend apparent in both Northeast Ohio and the country as a whole. Without more thoughtful and intentional approaches to diversity, equity and inclusion, it’s an issue that will continue to go unaddressed to the potential detriment of company bottom lines and marginalized groups seeking equity in society. “Our ability to continue to make progress on inclusion, diversity and equity is central to our success. We know that  an inclusive environment and diverse organization

strengthens our company by helping us to build a sense of shared culture to attract top talent to enable every employee to reach their full potential,” said Jill Penrose,

chief people and administrative officer for The J.M. Smucker Co., acknowledging these efforts must incorporate the board of directors. Most companies seem to outwardly endorse a similar perspective. Yet there remains a long road to achieving racial equity in the board room with seemingly little change made over the years. Among 60 public companies in Northeast Ohio, there is an average of two women per board of directors. But there are just 1.8 minorities on average among 27 of these 60 that provided details for racial representation on their boards when asked by Crain’s.

NEO trails US in board diversity, but both are low ``The Cleveland-Elyria MSA, which accounts for 36 Russell 3000 Index companies: Directors:

230 white / 29 diverse

= 11.2% diverse

Directorships: 238 white / 29 diverse

= 10.9% diverse

``All Russell 3000 Index companies across the US: Directors:

17,578 white / 2,515 diverse = 12.5% diverse

Directorships: 21, 776 white / 3,270 diverse = 13% diverse SOURCE: ISS ESG HEAD OF DATA SOLUTIONS BRETT MILLER

For Fred Nance, global managing partner with Squire Patton Boggs and a director on the board at RPM International Inc., an adverse inference can be made in the

absence of data from more than half the local companies surveyed by Crain’s. See DIVERSITY on Page 11

8 | CRAIN’S CLEVELAND BUSINESS | November 2, 2020

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FOCUS | CORPORATE BOARD DIVERSITY | Q&A

Plotting a purposeful course toward diversity Greg Jones of KeyBank, Jerry Grisko of CBIZ discuss equity, inclusion and efforts to increase representation Increasing diversity and inclusion on corporate boards, and overall within a company, doesn’t just happen. It’s a very deliberate process. That idea was a common thread in a recent conversation Crain’s hosted with Greg Jones and Jerry Grisko. Jones joined KeyBank in April as its chief diversity, equity and inclusion officer, and Grisko is president and CEO of business services company CBIZ Inc., which recently signed the CEO Action for Diversity & Inclusion Pledge. Jones and Grisko talked about the importance of diversity on boards and some of issues surrounding efforts to increase it. And while there still is a long way to go, there are some bright spots, particularly in recent years. This conversation has been edited for length and clarity. — Sue Walton ``Let’s start with the big question: Why is it so important, especially with corporate boards, that we embrace diversity and inclusion efforts? Jones: At its core, the diversity, and what goes along with it from a gender and a race and ethnicity perspective, brings diverse experience, diversity of thought, which should bring another view to board discussions and ultimately to the organization’s strategy. There’s a lot of research out there that speaks to diversity. Companies in the top quartile from a gender diversity perspective are 25% more likely to experience above average profitability than their peers in the fourth quartile. Organizations in the top quartile of ethnic and cultural diversity outperform their peer companies by 36%. And it’s really not diversity for the sake of diversity, but you want the individuals that happen to be diverse to bring themselves to the table. That’s really important.

Grisko: The board has to be reflective of the priorities and the values of the company. If diversity and inclusion are important to the company, then the board needs to reflect that. If you look at the board and they are not diverse, you ask whether you’re having the right discussions at the board, whether

“As a professional services organization, we look at our communities. And if our communities today across the country are 40% non-Caucasian, you would say does your workforce and your board reflect that?”

they have the right experiences, perspectives, etc. As a professional services organization, we look at our communities. And if our communities today across the country are 40% nonCaucasian, you would say does your workforce and your board reflect that? Or is it at least on a path to begin to reflect that? `Even ` though there is a lot of work to be done, there has been some significant movement recently. Can you address that? Jones: The landscape has changed, and I would say over the last few years. There have been very deliberate attempts with a lot of organizations in pushing this whole notion of diversity on boards. When I think about the evolution of equity and inclusion in general, this is sort of that

next frontier, even though everything else still needs to have work done. But it’s become clear over the last few years that the influence of the board, the decision-making power of the board, especially around strategy, plays to how we’re going to look in the future and so that push has been very real by some organizations. Grisko: State Street, International Shareholders Services, BlackRock ...

“If I think about the Fortune 500 specifically, 37% of them don’t have African Americans on their boards. Are we where we should be? No. But I think there’s a lot of work around this that is moving us forward.” ——Greg Jones, chief diversity, equity and inclusion officer, KeyBank

Jones: They’re all participating in this. Absolutely. And there’s the Executive Leadership Council. So, in the past couple of years, it’s been a big push. Now, there’s still a long way to go. If I think about the Fortune 500 specifically, 37% of them don’t have African Americans on their boards. Are we where we should be? No. But I think there’s a lot of work around this that is moving us forward. Grisko: I think those organizations are really helping to advance in these areas, and they’re bringing the conversation to the board. We mentioned some of the organizations — BlackRock, State Street, CalPERS, ISS — all of which have this on their agenda and are making a point to comment on it. I think it’s healthy. Jones: Over the years, as we talk about diversity, equity and inclusion, organizations and some individuals in influential positions were waiting for it to happen organically. And it just hasn’t happened organically. So you have these organizations that are a bit of an influencer and are helping these companies begin to think about it. If you’re not deliberate about it, it’s just not going to happen. ``It’s not just about building diverse boards, but a diverse community within your company. How does that affect the leadership and the boards?

——Jerry Grisko, president and CEO of business services company CBIZ Inc.

See BOARD Q&A on Page 12

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FOCUS | CORPORATE BOARD DIVERSITY

Female representation gains momentum 40% of new board members in Northeast Ohio in the past two years are women In the past four years, the percentage of women appointed to boards at 53 Northeast Ohio public companies is up, but especially since the start of 2019:  % of new board members who are women, by the year they joined their board:  Pre-2016 Women: 44 Total new board members: 294 % of total: 15.0%  From 2016 to 2020, through mid-October Women: 62 Total new board members: 202 % of total: 30.7%  2016 Women: 4 Total new board members: 26 % of total: 15.4%  2017 Women: 8 Total new board members: 34 % of total: 23.5%  2018 Women: 14 Total new board members: 52 % of total: 26.9%  2019 Women: 22 Total new board members: 55 % of total: 40%  2020, through mid October Women: 14 Total new board members: 35 % of total: 40% SOURCE: CRAIN’S RESEARCH

BY DAN SHINGLER

The number of women on the boards of directors of area public companies has risen in recent years, but companies that have taken proactive steps to increase their boards’ gender diversity say there’s still progress to be made. When Crain’s looked at female board participation in 2015, only 14% of the 443 board members of the public companies we track were women — with 62 female board members then in place. Today, there are more directors and more of them are women. An examination of 2020 proxy data showed that women now make up 21.4% of local boards of directors, occupying 106 out of 496 total seats. Momentum seems to be picking up, too. Women made up 62 of the 202 new board members added by area companies between 2016 and 2020, or 30.7% of the total. In both 2019 and 2020, 40% of new directors at area companies were women. This isn't happening by chance. “We have been absolutely intentional about making sure we have increased diversity in our board room,” said April Miller Boise, executive vice president and general counsel of Eaton Corp. Her company has increased its number of female board members from three to four since 2015, even while it decreased the size of its total board from 13 members to 12. The issue is important to the company and its CEO, Craig Arnold — as well as to the Business Roundtable, an organization of CEOs that promotes

“WE HAVE BEEN ABSOLUTELY INTENTIONAL ABOUT MAKING SURE WE HAVE INCREASED DIVERSITY IN OUR BOARD ROOM.” — April Miller Boise, Eaton general counsel

LAURA WATILO BLAKE/EATON CORP.

corporate diversity and in which Arnold is heavily involved, Boise said. Other companies say they've also been proactively working on the issue. “There was a real effort to increase female participation on our board,”

EXPECT MORE.

said Invacare general counsel and chief administrative officer Anthony LaPlaca, whose company now has four women board members, including half of its independent directors. The effort, both LaPlaca and Boise said, includes hiring search firms to find female board candidates. Invacare and Eaton both instruct their recruiters to focus on finding more diverse board members. Other companies that have successfully increased the number of women on their boards, such as Parker Hannifin say they do the same. “This was reflected in our most recently completed director search, in which we strengthened the composi-

tion and diversity of our board with the appointment of Laura K. Thompson,” said Aidan Gormley, Parker Hannifin director of global communications and branding. “As with all new elections, Ms. Thompson’s appointment was the culmination of a global search that focused on three key criteria — diversity, culture and values — and alignment with a broad list of key skills and requirements.” But that doesn’t mean that qualified female directors are rare. Big companies routinely use search firms to fill board and executive positions and are merely applying the tools they’ve always used to become more diverse. There are many, qualified female candidates available, experts say. “When organizations are looking for what makes a best director, there are a lot of skills and experiences that are important to us … but I don’t believe there is a pipeline problem in terms of looking for people with those skill sets,” Boise said. Finding the best women candidates can be made easier with new ways of thinking though, she said. “Historically, there was a practice of only looking at CEOs as directors,” she said. “Now, though, it’s more, 'What’s the experience someone brings to the organization?' rather than just 'What’s the title they held in their last role,’ ” she added, noting that such a change in thinking brings more women into the universe of potential board candidates. What it will take to attract more qualified women into board seats, Boise said, is more leadership from CEOs and existing board members who genuinely want to see change and who drive their companies’ entire culture accordingly. It’s no mere coincidence that companies like Eaton don’t just have diverse boards, but diverse executive ranks as well, she said. “People want to go to organizations that are walking the talk,” Boise said. See FEMALE on Page 12

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DIVERSITY

“IT’S EMBARRASSING. IT’S UNFORTUNATE. AND IT NEEDS TO CHANGE.”

From Page 8

In other words, it’s reasonable to assume the stats look relatively bad (or not representative of diversity, in this case), otherwise the figures may have been supplied. Therefore, the average of 1.8 racial minorities per company board is likely more generous than reality across the full group. Nance called both the reluctance among companies to disclose their racial makeups, and the figures derived from those that did, equally disappointing. “It’s embarrassing. It’s unfortunate. And it needs to change,” he said. Women of color are the least represented group in the board room. But it’s not due to a dearth of qualified candidates, said Cassandra Chandler, founder and CEO of Vigeo Alliance, a group that advises companies on corporate efforts related to D&I. “It’s because they are not looking,” said Chandler, who sits on the board of trustees for Loyola University, New Orleans. “These people are out there. They’re just not always being targeted or trained up to the next role.” Companies, executives and search committees often rely on their own networks for identifying board members, a myopic approach that intrinsically limits a pool of candidates, said Diana Bilimoria, KeyBank professor and chair of the Department of Organizational Behavior at the Weatherhead School of Management. This is why board diversity needs to be approached more intentionally, she said, and one reason why advances there have been so slow. Meanwhile, women of color tend to be expected to jump through additional hoops than white, male counterparts, like securing a pricey board training certificate from a university, Chandler said. This reflects the “twice as good” concept and contributes to hurdles some diverse people face in the corporate world. “We have to be more deliberate, more thoughtful in matters of D&I and ask, ‘Are the things we are doing sustainable?’” Chandler said. “Or will we wake up another 10, 15 years from now and see the same problems we’ve been having for a lifetime?”

What’s the issue here? According to an analysis by Brett Miller, head of data solutions for Institutional Shareholder Services ESG division, across the Russell 3000 Index, about 12% of directors and 13% of directorships are racially diverse. The latter figure refers to board seats and is higher because of some diverse directors sitting on multiple boards. Among 36 Russell 3000 companies in the Cleveland-Elyria MSA, 11.2% of directors and 10.9% of directorships are diverse. Though representation among both groups remains dismal on corporate boards, the stats show that gender diversity has been prioritized more than racial parity in recent years. A lack of board diversity is the fault of companies and how they go about seeking board candidates, experts say, which goes back to how the status quo tends to work against modern diversity initiatives. Smucker’s has been working in recent years to improve racial diversity and equity in both the workforce and the board room. Penrose said this is a company value, yet one that has become an elevated priority following a listening tour across the company

— Fred Nance, global managing partner with Squire Patton Boggs and a director on the board at RPM International Inc.

CONTRIBUTED

that centered on promoting a culture of diversity and inclusion. Following that, Smucker’s has since joined the Stop Hate for Profit campaign, made Juneteenth a paid holiday and mandated unconscious bias training. Events like the Black Lives Matter movement and the surrounding protests in 2020 have brought a finer point to why racial equity among directors is important. “Certainly with given events more recently, there is an increased focus on this,” Penrose said. “But we have become more intentional, as many companies have, and I think that will have positive outcomes for individuals and the organization.” The Smucker’s board of 12 directors includes five women and three minorities (one is a Black woman). That’s about the high-water mark for companies based in Northeast Ohio. In terms of building a diverse board, Penrose said the company intends to do even more. Smucker’s has been trending this way in recognition that a more diverse company is a better company, Penrose said. This is backed up by a litany of studies over the years. For the board, an age limit of 72 was established for directors to support turnover and create opportunities to fill seats with diverse hires. Investors are looking for diverse companies, too, said Jeannette Knudsen, chief legal and compliance officer and secretary for Smucker’s, and are increasingly pressuring large companies to disclose that information. That’s something mandated in California following Gov. Gavin Newsom’s signing in September of a law requiring public companies based there have diverse boards by January 2023. Considering the political landscape in the traditionally red Buckeye State, Nance is skeptical anything like that will be legislated in Ohio anytime soon. However, forward-thinking companies recognize that what’s playing out in the Golden State could set an example others follow. Marcia Moreno, president of AmMore Consulting in Cleveland, helps businesses build more diverse and inclusive companies with the Latinx workforce in mind and advocates for Hispanic representation on company boards. Companies will ignore this to their peril, she said. According to ISS ESG, U.S. Latinos composed just 2.2% of board seats for companies in the Russell 3000 and less than 4% of seats in the Fortune 500. Yet Hispanics are on track to represent 25% of U.S. residents by 2045, when whites are projected to fall below a 50% majority of the population.

“This is where Latinos are not being taken fully advantage of. This is an important voice that’s being left off the table,” Moreno said. “Sooner or later, this is going to impact the bottom line.” Yet many companies can’t get out of their own way. Despite a lot of lip service paid to diversity and inclusion, PwC’s 2020 Annual Corporate Directors Survey found that just 34% of male directors “strongly agreed” that diversity enhanced board performance (down from 40% in 2018), compared with 80% of women (up from 73% in 2018). Of course, the overwhelming majority of male directors are white. “When you ask the question why is it taking so long for corporate boards to become more diverse,” Nance said, “there’s most of the answer.” Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

“Create a pipeline for people to join boards as part of these corporate efforts. Offer training programs for Latinos or others who want to sit on corporate boards so they understand how to grow into these opportunities or what training they might be missing, or whatever else it is they can do personally and professionally to advance. Then do some succession planning.” — Marcia Moreno, president, AmMore Consulting

“Having diverse perspectives on our board of directors supports our commitment to continuous improvement and evolving to meet the needs of all constituents. In addition to enhancing our decision-making, the diversity of our board helps us to have greater cultural awareness and appreciation for how we can continue to strengthen our commitments to important environmental, social and governance objectives.” — Jeannette Knudsen, chief legal and compliance officer and secretary, The J.M. Smucker Co.

“I would like to see corporations, banks and other organizations take a look at their boards with a real commitment to making change. But it has to start with you, individually, wanting to make a change. It can’t be all rhetoric, or a policy or another box to check off, or there will never be any real action.” — Cassandra Chandler, CEO, Vigeo Alliance

“I don’t think we should be focusing on diversity and equity and inclusion because we are going to make more money or because there is a business case. I don’t think you have to make a case for companies to be more diverse today unless you’re a dinosaur, in which case you’re not going to survive or thrive or be as much help to your communities in the future.” — Jana Litsey, senior executive vice president/general counsel, Huntington Bank

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FOCUS | CORPORATE BOARD DIVERSITY

FEMALE

“WE’VE FOUND BY HIGHLIGHTING THE DIVERSITY OF OUR BOARD, WE’VE GOTTEN GREAT FEEDBACK FROM SHAREHOLDERS.”

From Page 10

Bringing gender diversity to a board is also something that builds upon itself, LaPlaca said. “Once you have a diverse board, it becomes easier to recruit other top-quality people,” he said. “Success kind of builds on success.” And gender diversity also begins to show its real value as the number of women board members increases, he said. While the first woman on a corporate board might feel like a pioneer, as others join, their jobs become easier and their roles become larger. see more gender diversity on the “By the time we brought on the third boards of their investment compawoman, you could see the discussions nies. That’s helped drive their comof the board broaden and become panies to become more diverse, and more collaborative. … I sit through ev- the process works best when the diery board and committee meeting, and rection comes from the top. the level of collaboration and congeni“That tone at the top, from our CEO ality you get when you have a diverse and board, is very important and abboard is heartening and fosters great solutely sets the direction,” Boise said, discussions,” LaPlaca said. noting that Arnold has pushed hard Boise agrees. for Eaton to make both its board and “It is refreshing, not being the only executive ranks more diverse. person in the room who looks differBut there’s still much to be done ent,” she said. when it comes to gender diversity in Eaton too has benefited from in- the board room, Boise said. creased collaboration and better de“In 2019, the last year for which we cision-making, Boise added. had complete data, 45% of new direc“Anytime you have people who tors (among U.S. corporations) were have different experiences and dif- women, so that’s a significant numferent backgrounds, they’re just go- ber. But still only about 19% of total ing to bring a different perspective to directors were women,” Boise said. decision-making. … We think we get Boise’s pleased, but not content. better decisions, there’s better delib“I think a lot of progress has been eration and you don’t get that group made in the last five years or more, think,” Boise said. particularly on gender diversity, but I But while corporations that have think there’s a lot of work still to be brought more gender diversity to their done. We have to push ourselves as board say it has helped their business, corporate leaders to make sure the they also concede that corporate changes don’t happen more slowly,” America still needs urging to do more. she said. Both LaPlaca and Boise said their companies have heard from institu- Dan Shingler: dshingler@crain.com, tional investors who say they want to1 10/13/20 (216) 771-5290, OH_PPS_2020_Crains.qxp_Layout 10:48 AM@DanShingler Page 1

—Anthony LaPlaca, Invacare general counsel

KEITH BERR/INVACARE

“Aligned with the way we view our business and our people globally, we believe that diversity is an important attribute of a well-functioning board and enhances our ability to achieve our business goals and drive strong returns for our shareholders. Among other things, we require that each search for qualified director candidates include individuals with diverse backgrounds in terms of gender, ethnicity and race.” — Aidan Gormley, director of global communications and branding, Parker Hannifin Corp.

“We just can’t let up on this — it’s just too important.” — April Miller Boise, Eaton general counsel

BOARD Q&A

From Page 9

Jones: There’s a lot to be said for having diversity on the board and employees within the organization and within the communities seeing that diversity. And it’s another thing for the diverse board members to make sure that the visibility and priority of diversity, and how we respond to communities, is there as well. There is a value that is emotional and engaging. Grisko: For us, it’s top-down and bottom-up. From the top down, many of us signed the CEO pledge for diversity and inclusion recently. And I think we’d all agree that we are really only as successful as the talent we’re able to attract to the organization. More and more today, that talent is looking up and down the ranks, from the board all the way down through the organization, and they’re asking whether the organization looks like them. And whether it looks like their communities. Jones: When you talk to young people who are looking to invest their careers, they are looking for that. And so the examination is not only the job that may exist in the organization, but from a culture perspective, they want to know if they’re going to a place that has their values. So they do look up and down the organization — senior talent, midlevel talent, junior talent, as well as the board — and they’re making decisions based on that. If you want to get some of the best and the brightest, you have to have a strong diversity brand.  What are the biggest challenges organizations face in creating board diversity? Grisko: One of the big challenges is that board seats simply don’t turn over that often. I think there’s an awareness of that and some movement afoot to have more active board refreshment.

Then the criteria that you use to vet board members are different today than they may have been 10 or 20 years ago. Oftentimes, board members were vetted through, “Did they have CEO experience? Or C-level experience?” Or networks of other board members. And if you listened to those things, you’re going to have a very limited pipeline, because oftentimes a nondiverse candidate didn’t have those opportunities. You need to think about the criteria differently. Jones: I think that’s probably one of the biggest hurdles, and it’s truly because of history. People haven’t had those opportunities, as Jerry said. Looking less at the job title and more at the skills or the things that they bring to the table, I think, will broaden the possibility of board talent.  Closing thoughts? Jones: The ability to engage in the dialogue around these things and to really have the conversations, and peel back in discussions, with diverse individuals, the value proposition for the receiver of the information is big. The ability to step outside of what you’re comfortable with and engage with people who are diverse — the value proposition is huge for the individuals who are doing it. Grisko: I think about awareness. There’s a lot being done today around unconscious bias training. If you’re going to be effective leaders, and committed to diversity and inclusion, it starts with ourselves and the way we view others. And starting with the fact that we all have some level of unconscious bias. When you have that awareness, then you can lead differently, manage differently, act differently. And have different results. If I had one recommendation for organizations to start down this path, really effective unconscious bias training would be a good start.

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SPONSORED CONTENT

November 2, 2020 S1

ESTATE PLANNING

The best time for estate tax planning? Now. By JON W. GROZA, The MetroHealth Foundation

s unpredictable as the future is, an election year can bring much more uncertainty. This is especially true regarding existing tax policy, and proposals that might affect it. The estate tax exemption, often considered a political hot potato, is the highest ever this year at $11.58 million for an individual (or $23.16 million for a married couple). The Tax Cuts and Jobs Act (TCJA) enacted in 2017 raised the exemption on a yearly

basis. If nothing is done to extend it and the law sunsets as planned, the TCJA will expire in 2025, and the estate tax exemption will return to a pre-2018 level of approximately $5.5 million for an individual (or $11 million for a married couple). The estate tax could see a reduction as well, should new laws be enacted. Regardless of when and how the change happens, it is very likely that the estate tax exemption has reached its highest point until 2021. From

You may want to consider revisiting your estate plan and, if necessary, transferring assets out of your estate by Dec. 31. an estate tax planning perspective, acting now may be as good as it gets. You may want to consider revisiting your estate plan and, if necessary, transferring assets out of your estate by Dec. 31. Transferring assets now with lower valuations – the result of the COVID-19 pandemic — allows you to shift more value out of your estate to maximize your exemption. The combination of low asset values and low interest rates also allows you to transfer assets to your beneficiaries at a much lower cost. In such an uncertain environment, some of the most common and effective planning techniques include:

1. Family loans to take advantage of historically low interest rates. 2. Gifts to family members or to irrevocable trusts to use some or all of your $11.58 million (individual) exclusion.

7. Charitable Lead Annuity Trusts (CLATs) that provide charitable gifts for years with the remainder passing to beneficiaries.

3. Gifts to an Intentionally Defective Grantor Trust that allows gifts to grow tax-free for your beneficiaries – typically children or grandchildren – while the grantor pays income tax on any income generated. 4. Gifts to family members in excess of $11.58 million at a gift tax rate of 40%. 5. Spousal Limited Access Trusts (SLATs) that provide income to your spouse from assets gifted to the SLAT. 6. Grantor Retained Annuity Trusts (GRATs) that provide an income stream from assets likely to appreciate over time.

GROZA

Jon W. Groza is a partner at Kohrman, Jackson, and Krantz LLP. Jon is a member of The MetroHealth Foundation board of directors. Contact him at the foundation at 216-778-5665. Erika Flynn Apelis, also a partner at Kohrman, Jackson, and Krantz LLP, contributed to the article.

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Ending the Year Well:

Ideas for Year-End Giving Your gift to the Jewish Federation of Cleveland provides meaningful support to those in need. YEAR-END CHARITABLE GIVING • Support Jews in Cleveland and around the world • May provide tax savings • Simplify your giving This material is presented for informative purposes only and should not be construed as legal, tax, or financial advice. When considering gift planning strategies and year-end gift opportunities, you should always consult with your own legal, tax, or financial advisors.

For more information, please contact Carol F. Wolf at cwolf@jcfcleve.org or 216-593-2805.

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

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SPONSORED CONTENT

S2 November 2, 2020

SPO

ESTATE PLANNING

Family Limited Partnerships afford broad utility By VANESSA MAVEC KING, Ancora

amily Limited Partnerships, or FLPs, are a powerful estate planning tool, the structure of which allows for the transfer of ownership of an asset to the next generation without losing any control of the asset. They can

be utilized to hold family business, real estate or other assets with a business purpose. FLPs enable tax planning, succession planning and creditor protection while reducing income and estate tax and providing liability protection to the owners.

When establishing a FLP, an individual (or entity owned by the individual) acts as the General Partner (GP) who controls the management of the partnership and its assets. The GP then gifts limited partnership units (LP

units) to family members or to trusts for their benefit. The gift of LP units will use the GP’s lifetime gift tax exemption. The family members who own the LP units have economic interest in

Because of this lack of control that the LP units possess, the business units may be transferred at a discount to their fair market value. The amount of discount available depends on the assets held and must be appraised and disclosed to the IRS on the gift tax return. It is important to utilize a qualified appraiser for the LP units so that the appropriate discount is applied.

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Typically, the FLP is set up so that the GP owns a very small percentage and the LP units own the vast majority. Because of that structure, both the future income

FLPs enable tax planning, succession planning and creditor protection while reducing income and estate tax and providing liability protection to the owners. and the future appreciation of the assets in the partnership are removed from the GP’s taxable estate. Both GP and LP units will be taxed on pass-through income, but oftentimes the FLPs transfer out enough income to cover the tax liability for the owners.

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When the GP wants to implement a successor, they can determine who receives their GP interests in the partnership. This can be a family member or an outside party. This flexibility is key since oftentimes partnerships are created prior to succession plans being finalized.

Glenmede’s services are best suited to those with $5 million or more to invest. glenmede.com

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the partnership but lack the ability to control, direct or influence operation of the partnership, which is part of what makes FLPs incredibly attractive in certain situations. Essentially, the GP is the operator while the LP units create passive ownership for the other family members.

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Vanessa Mavec King is vice president, financial planner at Ancora. Contact her at 216-825-4000 or vking@ancora.net. 9/15/20 4:52 PM

10/29/2020 2:18:10 PM

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SPONSORED CONTENT

November 2, 2020 S3

ESTATE PLANNING

Retirement plan assets: an obvious choice, often overlooked By CAROL F. WOLF, Jewish Federation of Cleveland

Charitable gifts using retirement assets are becoming more popular because of their ease and flexibility.

s a planned giving officer, I have observed that many people do not remember who they have designated as beneficiaries of retirement plan assets. It is important to check these designations annually and at the time of significant life cycle changes. Often, a survivor who assumes he or she is the beneficiary discovers that the official form names someone else.

Again, the key is to make sure that the designation form is updated frequently. There are many benefits for individuals who make IRA distributions to charities while living, but when one names a charity as a beneficiary to receive an IRA or other retirement assets upon a person’s death, the benefits may be even greater. Donors may be able to support causes they care about with much

larger gifts than they may have been able to give while alive. Because charities do not pay income tax, the full amount of the retirement account directly benefits the charity. Once the designated beneficiary forms are in place, the retirement assets will generally pass directly to beneficiaries (including charities) without going through probate. Another incentive for donating IRA assets to a charity is that non-spouse beneficiaries must now withdraw all funds in the

It is common for people to be unaware that retirement assets are an easy, effective vehicle for bequests. It is as easy as completing a beneficiary form and can be changed at any time.

inherited IRA within 10 years from the death of the original account owner (applies to IRAs inherited after Dec. 31, 2019). If the donor is married, the spouse may be required to consent to the charitable beneficiary. If required but not done, this could result in a disqualification of the charity as your beneficiary. As always, it is important for donors to consult with and express their wishes to spouses, lawyers and financial advisors to make sure all the documentation is correct. If the donors are amenable, it is helpful for them to inform charities of planned bequests. Most charities want to show their gratitude, thank them while they are alive, and ensure that the donor’s wishes for the bequest are noted. These conversations should include a discussion about recognition vs. anonymity.

Charitable gifts using retirement assets are becoming more popular because of their ease and flexibility. Every donor’s situation is unique, and these decisions should be made with professional consultation.

WOLF Carol F. Wolf, CFRE, is assistant vice president of Planned Giving and Endowments at Jewish Federation of Cleveland. Contact her at 216-593-2805 or cwolf@jcfcleve.org.

“We make a living by what we get, but we make a life by what we give.”

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Reduce your taxable estate through charitable giving

Get more with Ancora. With proprietary investment strategies, wealth planning and retirement plan solutions - we help you get more out of life. 216-825-4000 / www.ancora.net

By LIA JONES The University of Akron

ith the federal estate tax threshold at an all-time high of $11.58 million for individual filers, now is the time for philanthropists to consider reducing their taxable estates through charitable giving. Making outright gifts or establishing an irrevocable trust with a charitable beneficiary are great options to consider. Both yield charitable tax deductions while removing the gifted assets from the donorâ€™s estate, ensuring they are not subject to federal estate taxes. Under current law, individuals will owe a 40% flat rate in taxes on the value of their assets over the federal estate tax threshold. Donors who

Charitable giving is a wonderful way to reduce your taxable estate, while making an important impact on organizations you care about. make a gift or establish a charitable trust before Dec. 31, 2020, will ensure the current law applies, even if the estate tax threshold decreases in the future. Outright gifts help charitable organizations serve our community and care for immediate needs. Your favorite charity can talk with you about various gift opportunities, including those that will ensure your legacy continues in perpetuity, like a named endowment supporting student scholarships or other impactful initiatives. The CARES Act, established in response to the COVID-19 pandemic, has created unique charitable giving opportunities. Among them is the option for individuals to withdraw all or part of their retirement assets without penalty, and gift the withdrawn amount to charity. A great deal of wealth is held in retirement assets, so this is an attractive opportunity to permanently remove them from taxable estates. The amount withdrawn will count toward

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the individualâ€™s annual gross income and may be deducted as a charitable contribution, offsetting income tax liability.

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Charitable trusts are also attractive options because they enable donors to support both loved ones and a favorite charity through a single gift. Charitable remainder trusts irrevocably remove assets from the estate, while providing an income stream for one or more beneficiaries during life with the remainder of the trust principal going to charity. Similarly, charitable lead trusts direct an established percentage to charity for a term of years, with the remainder going to named individual beneficiaries. Estate taxes may also be offset by naming a charitable beneficiary of a bequest or beneficiary designation of retirement assets. Charitable giving is a wonderful way to reduce your taxable estate, while making an important impact on organizations you care about. Consult with your advisors to determine strategies that make the most sense for you.

JONES Lia Jones is director of the Center for Gift and Estate Planning at The University of Akron. Contact her at 330-972-2819 or LiaJones@uakron.edu

10/29/2020 2:18:47 PM

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SPONSORED CONTENT

November 2, 2020 S5

ESTATE PLANNING

Trusts: who’s really in control? By KAYLEIGH COWSER Clearstead

Whether you have determined a fixed trust, discretionary trust, or a hybrid trust is best for your estate planning goals, it is necessary to remember that a focus needs to be on the assets funding the trust.

hen deciding to create a trust as part of your estate plan, there are many decisions you will have to make. Will you create a revocable or irrevocable trust? Who will be the trustee? Who will be the beneficiary or beneficiaries? For how long will the trust be in existence? The answers to these questions are crucial as they are used to create the dispositive provisions of the trust,

which govern the distribution of the trust assets to the beneficiaries. Regardless of whether the trust is revocable or irrevocable, the dispositive provisions create what is known as a “fixed trust” or “discretionary trust”; additionally, there is the potential for a hybrid trust of the two. The person responsible for the administration of the trust and distribution of the trust assets is the trustee. The dispositive provisions control how much flexibility the trustee has over the trust assets. A fixed trust means the beneficiaries of the trust, the amount of trust assets to be distributed, and when the trust assets should be distributed are defined. A discretionary trust means the beneficiaries of the trust are defined, but the trustee uses their discretion in determining amount of trust assets to distribute and when to distribute such assets.

The terms of a fixed trust define a percentage or specific amount of income and/or principal that must be distributed to a beneficiary. The terms also may define specific reasons that additional principal must be distributed when requested by a beneficiary. The terms of a discretionary trust give the trustee the power to use their sole discretion to determine what amount of income and principal to distribute to a beneficiary and when.

the trust. If a trust is incorrectly funded or you do not understand the potential growth of the trust assets, your goals of creating the trust may simply be unsuccessful.

in understanding the assets of their estate to determine which trust structure and type of trust is the best option to achieve their estate planning goals.

Additionally, it is important to understand which assets from your estate are best to fund the type of trust you have chosen. Clearstead assists clients regularly

Whether you have determined a fixed trust, discretionary trust, or a hybrid trust is best for your estate planning goals, it is necessary to remember that a focus needs to be on the assets funding

COWSER

Kayleigh Cowser, Esq., is trust & estate planning counsel at Clearstead. Contact her at 216-621-1090 or kcowser@clearstead.com.

encouraging faithful philanthropy WE ENRICH DONORS’ LIVES BY CONNECTING THEIR SUPPORT WITH THE MINISTRIES AND SERVICES OF THE DIOCESE OF CLEVELAND TO CONTINUE JESUS’ MISSION ON EARTH. Since its inception in 2000, the Catholic Community Foundation has raised more than $503 million to provide for the spiritual, educational and charitable needs of people throughout Northeast Ohio.

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SPONSORED CONTENT

S6 November 2, 2020

SPO

ESTATE PLANNING

Supporting institutions you love through the pandemic and beyond Dispelling common myths about creating your legacy By KATIE SHAMES The Cleveland Orchestra

inston Churchill is famously quoted as saying, “We make a living by what we get, but we make a life by what we give.” These words succinctly express the opportunity for all of us – regardless of economic situation or circumstances – to preserve the institutions and causes that mean the most to us. Perhaps you didn’t expect the word “opportunity” to appear in an article about the pandemic, but there has

never been a more opportune time to express your commitment to the places and people you deeply value. This is the time to preserve the causes that mean the most to you, and the institutions that make Cleveland a world leader in so many areas. While the effects of this pandemic continue to unfold on our economy and our personal finances, the challenges to the institutions and causes we value most have never been greater. I know many of us are asking ask ourselves, “How do I

support the institutions I love during this unprecedented time?” I hope to answer that for you today by dispelling some common misconceptions about charitable giving. Myth #1: You need to be wealthy to make a bequest. Everyone can create a legacy, even today. Estate planning is a form of best practice for all households regardless of income, and is an act of consideration for your heirs.

Planning your estate early preserves time, assets and family harmony. Bequests both large and small are welcomed and valued by the institutions they support. Moreover, your heirs can honor you, even after death, by their continued support of these same institutions. And that’s an immediate legacy. Myth #2: Bequests are the only way to leave your legacy. When people hear “legacy giving” or “planned giving,” they often assume this refers only to bequests. In actuality, there are many ways to leave a thoughtful legacy that can benefit both your family and your community. For instance, you can designate an institution as a beneficiary for your life insurance policy, or endow and name a fund for a program that is meaningful to you. Myth #3: It’s too complicated.

What is Your Legacy to Impact Vision for Generations to Come?

FUTUR E PL AN N I N G Bequest Charitable Gift Annuity Life Insurance Policy Charitable Remainder Trust Charitable Lead Trust Your gift today can impact the sight and lives of others for generations to come.

PLEASE CONSIDER LEAVING A LEGACY. Contact debbie@cleyebankfoundation.org

Leaving a meaningful legacy doesn’t have to be intimidating. For some people, it’s as simple as adding one line into your will. Others may pursue vehicles that require a deeper knowledge of tax and estate law – that’s where planned giving professionals come in. It’s our job to welcome and guide you through the process of making decisions that meet YOUR goals, not ours. It’s deeply rewarding to help you express what matters most to you in your charitable giving! We are here to serve you and explain in easily digestible terms the ins and outs of various giving vehicles. We can work with you and your family members individually, or with your advisors to achieve your vision.

provide tax advantages and targeted giving that benefit heirs and institutions consecutively. In the case of Charitable Lead Trusts, there is also a chance to experience the joy of seeing the funds used during your lifetime. What a great opportunity!

This is the time to preserve the causes that mean the most to you, and the institutions that make Cleveland a world leader in so many areas.

Myth #5: It’s not the right time to plan your legacy. As these stressful months of the pandemic have demonstrated, there is nothing we should take for granted. Life can change dramatically, very quickly. Planning is always a good idea, but the events of 2020 have underscored both the challenges and opportunities that individuals have in expressing their love and support for cherished causes and institutions. It is never too early to plan your legacy.

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Here is the simple but profound truth: Future generations will benefit tomorrow from your thoughtfulness today. Your gifts make your own life and legacy, as Winston Churchill wisely advised us. Now is the time.

Myth #4: You can’t provide for both your heirs and the institutions you love. Planned giving is not an either/ or proposition! In fact, planned giving through Charitable Trusts provides advantageous vehicles that do double duty: one contribution benefitting both family and institution. Charitable Lead Trusts and Charitable Remainder Trusts

SHAMES Katie Shames, JD, is planned giving and major gift officer at The Cleveland Orchestra. Contact her at 216-231-8006 or legacygiving@ clevelandorchestra.com

CLEYEBANKFOUNDATION.ORG

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The inside scoop on choosing an estate planning lawyer By JENNIFER A. SAVAGE and M. ELIZABETH MONIHAN Schneider Smeltz Spieth Bell

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ou need to do estate planning, but like visiting the dentist, it is not expected to be pleasurable. Good estate planners provide peace of mind, help achieve tax savings, and serve as a trusted advisor for your family. Here is advice on selecting a skilled attorney: • Ask friends and professional advisors about their experiences. The best referrals come from happy clients. If friends describe their lawyer as smart, trustworthy, a proactive and clear communicator, and with their best interests at heart, consider this lawyer. Financial advisors and accountants also work with estate planners. If you trust your other advisors, you can feel confident about their recommendations. • A good lawyer should be a good listener. You need to share personal

information for a lawyer to give you sound advice. If a lawyer makes you feel uncomfortable or unintelligent, keep looking. You may need to interview several before you find a good fit. If you are married, both spouses should feel equally comfortable asking questions. Otherwise, when a spouse dies, an uneasy survivor may lack a trusted advisor when needed most. • Everything in estate planning can be explained in sufficiently plain language to enable you to feel good about your decisions. You may not be able to explain technical tax details, but you should feel confident that you made a good plan and have rules to live by. • Cleveland has many competent estate planning lawyers. You want one who knows the tax rules, writes

clearly, communicates plainly, and works well with your other advisors. Go with your gut to pick a good fit for your family. • Lawyers’ billing practices vary. It is fair to ask questions and understand process. But a capable lawyer may not be able to provide an accurate cost estimate until they understand your circumstances and assess your needs. Estate planners often start with forms, but most thoughtful plans are customized for the client’s needs. All clients have different circumstances and priorities and make different choices about their needs. Good lawyers expect and price for personal attention. • Skilled estate planning lawyers provide more than just legal advice and documents. They advise families about issues, approaches and

choices. They understand family dynamics and concerns, work well with advisors, and share experiences of how proposed designs can be effective or problematic. They help you implement the plan. We hope these tips lead to a pleasant (or at least tolerable) estate planning experience.

SAVAGE

Jennifer A. Savage, Esq., is a partner at Schneider Smeltz Spieth Bell. Contact her at 216-696-4200 or jsavage@sssblaw.com. M. Elizabeth Monihan, Esq., is a partner at Schneider Smeltz Spieth Bell.Contact her at 216-696-4200 or memonihan@sssb-law.com

MONIHAN

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An estate needs a plan like a house needs a foundation.

We help families and businesses create a solid base for achieving their long-term goals. us.

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For families, our estate plans are tailored to their specific needs, including the special needs of beneficiaries, asset protection, and tax planning. We also provide advice on family goals and governance, and establish and represent charitable trusts, private foundations, and donor advised funds within public charities. For business owners, we advise on business succession matters, including transitioning a business, recruiting, developing and retaining managerial talent, and owner exit strategies, including the formation of ESOPs and the sale of stock to ESPOPs. Contact one of our Estate Planning attorneys today.

Mia Garcia

David Weibel – (216) 515-1072 – dweibel@frantzward.com Jeffrey Perlmuter – (216) 515-1654 – jperlmuter@frantzward.com Margaret Metzinger – (216) 515-1075 – mmetzinger@frantzward.com Matthew Kadish – (216) 515-1078 – mkadish@frantzward.com Mia Garcia – (216) 515-1625 – mgarcia@frantzward.com

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Ralph Higgins – (216) 515-1617 – rhiggins@frantzward.com William Duncan

William Duncan – (216) 515-1073 – wduncan@frantzward.com

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Tax advantages to estate planning Establishing a legacy to impact vision for generations to come

By DEBBIE MAY-JOHNSON, Cleveland Eye Bank Foundation

ifts to foundations can have an impact on the lives of others today and for generations to come. In the case of the Cleveland Eye Bank Foundation, gifts can have far-reaching impacts, as we work with local physicians and researchers to advance treatments and cures for blinding eye diseases. Planned giving is a great way to give and accomplish your financial, tax or estate planning goals while leaving a lasting legacy in support of vision. It is important to work with you and your advisors to provide assistance to ensure you choose the best approach for your charitable goals. FUTURE PLANNING Bequest. A bequest is the simplest way to provide a future gift. Please be sure specific bequest language is included in your will or trust. Charitable Gift Annuity. A charitable gift annuity is an irrevocable gift that returns an income stream to the donor or another beneficiary, based on the recipient’s age at the time of the gift. The donor qualifies for a

charitable tax deduction for part of the gift, while the payments may receive favorable tax treatment. Most importantly, the gift annuity will substantially help meet the needs of your designated charity or foundation. Life insurance policy. Unused life insurance policies make excellent charitable gifts. Charitable Remainder Trust. Charitable remainder trusts enable a donor to make gifts using payment options that best meet their needs. Additionally, remainder trusts are flexible enough to permit the use of a variety of assets, including cash securities and real property and can provide tax advantages. Donors qualify for a charitable deduction for part of the gift, and trust beneficiaries receive a percentage of the trust annually. Charitable Lead Trust. Donors can support the needs of their designated foundation or charity now, and the remaining assets can be transferred to other individuals

or even themselves at a future date with possible tax advantages. Assets in the lead trust would benefit the foundation or charity for a fixed number of years or over a donor’s lifetime. Indeed, your gift today can impact the lives of others for generations to come.

By RYAN T. FULMER, Beese Fulmer Private Wealth Management

uccessful business owners share one common characteristic — a large portion of their net-worth is illiquid, challenging to transition and requires significant time and planning to turn into cash. A common misstep in succession and pre-sale planning is to focus entirely on taxes and company valuation while ignoring the impact of the deal structure and the risk to your long-term ability to maintain your lifestyle and wealth.

MAY-JOHNSON

Debbie May-Johnson is executive director at the Cleveland Eye Bank Foundation. Contact her at 216-232-EYES (3937) or debbie@cleyebankfoundation.org.

Leave a legacy that shapes futures. Invest in student success with a tax-wise gift this year or by including The University of Akron Foundation in your estate plans.

Lia Jones Director, Center for Gift and Estate Planning LiaJones@uakron.edu n 330-972-2819 uakron.edu/RiseTogether The University of Akron is an Equal Education and Employment Institution. ©2020 by The University of Akron – uakron.edu/eeo

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Critical wealth planning steps for business succession

Early in succession or pre-sale planning, it is critical to complete a detailed cash flow and wealth projection analysis. This analysis should review the timing of proposed pay-outs and the impact

You will only have one chance at transitioning your business, and devoting the appropriate time and resources with experienced professionals will increase your odds of success. structures is to discount future payment streams with a discount rate similar to your investment portfolio’s expected rate of return, making evaluating different deal structures comparable. Questions addressed from this analysis might include: • How sensitive are your wealth goals to various EBITDA multiples and pay-out structures? • How much risk can you afford to take with seller notes and earnouts, and still achieve your goals? • Does advanced estate planning need to occur before a transition to reduce your federally taxable estate?

on your ability to maintain your lifestyle post-transition and achieve generational wealth goals. The analysis starts by estimating incoming and outgoing cash flows until age 90, considering large cash outflows such as: purchasing a second home, paying for grandchildren’s education or other large gifts. Forecasts incorporate proposed company valuations, deal structures, other investments, and net cash flows, to show your ability to achieve your goals under different deal structures and investment environments. As an example, let us assume you are comparing an all-cash offer to an offer that has half cash upfront, but a considerable portion of the sale price contingent on achieving profitability targets. Stress test analyses on earn-outs can demonstrate how sensitive your goals are to achieving the profitability targets. Another approach to reviewing contingent deal

Start preparing at least five years prior to when you think a liquidity event may occur, as the process will likely reveal other areas needing attention. You will only have one chance at transitioning your business, and devoting the appropriate time and resources with experienced professionals will increase your odds of success.

FULMER

Ryan T. Fulmer is president and portfolio manager at Beese Fulmer Private Wealth Management. Contact him at 330-454-6555 or rfulmer@ beesefulmer.com.

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ESTATE PLANNING

The CARES Act: Affording charitable giving options for everyone By NELSON J. WITTENMYER JR., Cleveland Clinic Philanthropy Institute

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The package includes several new charitable provisions, which are set to expire on Dec. 31, 2020: NEW ABOVE-THE-LINE STANDARD DEDUCTION Up to $300 deduction per tax return for annual charitable contributions is available for those who take the standard deduction. It is an “abovethe-line” adjustment that will reduce a donor’s adjusted gross income (AGI), and thereby reduce taxable income. If you have made a cash gift this year, it counts toward the $300 cap. Stock gifts are not eligible for this above-the-line deduction, and this benefit does not apply to gifts made to donor-advised funds. INCREASED CHARITABLE DEDUCTION LIMITS Individuals who itemize can deduct much greater amounts of their cash contributions. This year, they can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). This benefit is only for cash gifts that go to a public charity, such as Cleveland Clinic. Gifts of stock (held more than one year) remain deductible for up to only 30% of AGI. REQUIRED MINIMUM DISTRIBUTIONS WAIVED IN 2020 (FOR MOST PEOPLE) Required minimum distributions (RMDs) for individuals over age

72 (who would have been required to start receiving RMDs in 2020) do not have to begin until 2021. While they have been waived for 2020, RMDs remain attractive for individuals who would like to make a significant charitable gift directly from an IRA to a charity through a qualified charitable distribution (QCD). Such transfers are not subject to income taxes. It’s important to keep in mind that donors may have more IRA dollars available for charitable giving. Directing a QCD to a charity this year (of up to $100,000 per individual of age 70 ½ and older) will still reduce the taxable IRA balance. These options allow all taxpayers – itemizers and non-itemizers – to direct gifts to charities in a taxefficient manner.

Estate planning, life insurance and business solutions

Protecting Your Family. Preserving Your Legacy.

WITTENMYER

Nelson J.Wittenmyer Jr., Esq., is vice chair at the Cleveland Clinic Philanthropy Institute. Contact him at 216-444-1245 or giftplanning@ccf.org.

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he Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted as an economic stimulus package designed to provide immediate relief for individuals and businesses, including nonprofits, in an effort to enable recovery during the COVID-19 pandemic.

Jeffrey Wasserman 216-367-5990 jwasserman@oswaldcompanies.com

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Choosing your executor or trustee Consider long-term obligations as you consider the right person to fulfill your wishes By MARY EILEEN VITALE HW&Co.

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our estate plan isn’t complete without appointing someone to carry out your wishes. The important decision of your executor or trustee includes considering the time involved in assuming either role, the scope of duties and the burden that both roles may impose. EXECUTOR Under the supervision of the probate

court, an executor manages and distributes the estate according to the decedent’s will or, in the absence of a will, according to state laws of intestacy. Without a will, the court appoints an executor. When deciding on an executor, keep in mind the potential conflicts of interest that could disrupt family harmony. Your heirs should regard

your choice as someone who has common sense and is fair. You can appoint a family member, friend or a third party. BE SURE THAT YOUR CHOICE IS WILLING TO SERVE Settling an estate is time consuming. Even if your choice is willing and able to take on the job today, he or

YOUR TEAM FOR TRUSTS & ESTATES Charles F. Adler

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she may not be able to continue in the future. Always name a successor in your will. TRUSTEE You might consider a revocable trust if your goals include factors such as controlling distributions of assets to heirs, professional management or creditor protection. In establishing a trust, you will also appoint a trustee. A trustee manages the assets in your trust for the benefit of your beneficiaries according to the instructions provided in your trust document. A trustee has duties similar to those of an executor; a trustee’s decisions can have longlasting consequences. Thus some people rely on the professional services of a trust company. Important considerations when choosing a trustee: • Competence. A good trustee understands the trust document and his or her duties. The trustee can seek expert advice on legal, tax or investment issues when needed.

• Impartial. Your trustee understands that they have an obligation to consider the needs of all beneficiaries and not favor one over another. • Maturity. The ideal trustee should have the family’s/beneficiary’s respect.

A good trustee understands the trust document and his or her duties. The trustee can seek expert advice on legal, tax or investment issues when needed. • Astute. Your choice should have a history of making good financial and personal decisions. Naming your executor and trustee(s) is an important piece of completing your estate plan. He/she will represent you after you have passed.

• Willing and able. A trustee should be able to devote the time necessary.

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• Insight. A good trustee understands what you, the grantor, had in mind and is close enough to beneficiaries to understand their needs.

VITALE

Mary Eileen Vitale, CPA, CFP, AEP, is a principal at HW&Co., CPAs & Advisors. Contact her at 216-378-7210 or vitale@hwco.com.

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Charitable giving: life insurance and your legacy By JEFFREY WASSERMAN

TOGETHER, WE CAN HELP YOU LEAVE YOUR MARK ON CLEVELAND.

Oswald Specialty Life Oswald Companies

eople donate to charities for many reasons – to support a cause they are passionate about, to help the less fortunate or to honor a loved one. And while most donations are made through one time or annual contributions, planned giving provides donors with the opportunity to make a more significant gift. For those looking to make a major impact, donating a life insurance policy can be a very effective way to leverage charitable giving. For example: A couple in their 60s can establish a $5 million life insurance policy owned by a charity. Each year they make a donation equal to the annual premium of $45,000. Because their annual donation is deductible, the net cost at life expectancy is only $882,000. The leverage provided by the life insurance policy created an ultimate gift that was five times greater than their cash contribution. While this example is the most common approach, several factors can impact the ownership and source of funds. For families who have donor-advised funds or private foundations, life insurance can be a way to diversify assets and provide long-term sustainability to continue the family’s mission. Life insurance provides a guaranteed payout and is not correlated to financial markets, making it a great complementary asset to the fund or foundation’s other investments. Another consideration is the source of funds. If there is no need for an income tax deduction, the donation of highly appreciated stock or IRA assets is common. Individuals who are over 70½ may donate up to $100,000 per year to charities directly from their IRA. The amount donated is excluded from income and counts toward required minimum distributions. A 72-year-old couple could leverage a $100,000 qualified charitable distribution to create a $5 million life insurance policy. Bank financing is another source of funding that may be available, especially for life insurance

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policies greater than $10 million. Borrowing funds from a commercial bank can create even more leverage and generate returns of 15% or more at death.

For families who have donor-advised funds or private foundations, life insurance can be a way to diversify assets and provide long-term sustainability to continue the family’s mission.

MetroHealth is changing how health care is delivered in Northeast Ohio. We are making an investment in a vision for a healthy community. We are a catalyst for change – for our health, for our neighborhood, for our economy and for our future. Join us.

To learn more, contact Kate Brown, Chief Development Officer, at 216-778-5665 or kbrown@metrohealth.org. The MetroHealth Foundation 2500 MetroHealth Drive Cleveland, OH 44109

Finally, for families who want to see the impact of their donations during life, it may not be appropriate to structure life insurance for the benefit of the charity. Instead, it may be appropriate to structure life insurance for the benefit of their heirs to replace the assets donated to charity. Regardless of how it is structured, it is important to remember that life insurance provides a death benefit several times larger than the premiums paid, making it a great tool to help families satisfy both their charitable and estate planning objectives.

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WASSERMAN Jeffrey Wasserman is executive vice president and managing director of Oswald Specialty Life Oswald Companies. Contact him at jwasserman@oswaldcompanies.com.

PRIVATE WEALTH MANAGEMENT INSTITUTIONAL INVESTMENT CONSULTING 401(K) & RETIREMENT PLAN CONSULTING OCIO / DISCRETIONARY VISIT CLEARSTEAD.COM TO LEARN MORE

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2020 year-end tax planning with Glenmede: constructing a comprehensive strategy By LINDA OLEJKO Glenmede Income tax planning Work with your tax preparer to understand the consequences of accelerating income, particularly capital gains, into 2020 if higher taxes are on the horizon. Independent of election-related planning, consideration of the following should be revisited annually:

not considered taxable gifts and therefore do not consume any of the payer’s lifetime gift and estate tax exemption. Complete large gifts: Independent of who wins the presidential election, the current estate tax exemption amount is slated to revert to $5 million (increased by inflation) in 2026. Individuals who can afford to make gifts to use up this exemption would be well served to do so.

• Tax-loss harvesting • Tax-efficient trust distributions • Implications of the kiddie tax The election: uncertainty in the mix

olicy approaches to tax rates, deductions and exemptions differ significantly between the presidential candidates. Whereas President Trump’s tax policy would make permanent the 2017 Tax Cuts and Jobs Act (TCJA) and proposes a further middle-class tax cut, former Vice President Biden seeks to roll back the TCJA, revert

to 2016 rates and exemptions, and implement select tax increases and expanded deductions. Further, it is possible either administration could raise taxes in response to mounting budgetary concerns and national debt. What actions should we take now in anticipation of tax increases? How imminent are they? A Democratic sweep would enable Democrats to

take action immediately, but it is also quite possible a new administration would prioritize the economy over immediate tax changes. In all cases, the nature, extent and timing of any tax modifications are unpredictable. Regardless of the election outcome, the possibility of higher future taxes and lower exemptions suggests it would be prudent to plan now for actions that can be implemented after the election.

• Capital gains bracket management • Fully funding your IRA or 401(k) • Converting a traditional IRA to a Roth IRA • Making annual exclusion gifts • Funding 529 plans Tax-efficient ways to make charitable gifts • Making a qualified charitable distribution from an IRA • Bunching charitable gifts • Defer tax on capital gains with a charitable remainder trust Estate and gift tax planning The aggregate amount exempt from estate and gift tax per individual in 2020 is $11.58 million. This amount reverts to half that amount ($5 million increased for inflation) on January 1, 2026, and may also be reduced sooner by the possible tax law changes previously discussed. The starting point for all estate and gift tax planning should be to understand your goals-based wealth plan. Before you make any asset transfer, understand whether your assets are sufficient, within a reasonable degree of certainty, to be likely to achieve your personal goals. Annual exclusion gifts: Annual exclusion gifts of $15,000 per recipient accumulate over time to reduce a taxable estate. Any assets removed from your estate through non-taxable gifts avoid the potential 40% tax at your death. Tuition and medical expenses: Medical expenses paid directly to the provider and tuition paid directly to an educational institution are

Even if you do not make any large gifts, it’s possible to use techniques to remove future appreciation from your estate so the appreciation is not subject to the 40% estate tax at your death. Grantor retained annuity trusts (GRAT), a loan to an irrevocable trust for your children and other similar techniques, work well in this low-interest-rate environment. These techniques preserve your access to the underlying capital should you need it and minimize any taxable gifts that consume your estate tax exemption.

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To read the full version of this article, view the elements of both President Trump’s and former Vice President Biden’s tax policy and read more comprehensive planning points and techniques, visit our website: https:// go.glenmede.com/2020-tax-strategy. This material is intended to be a review of issues or topics of possible interest to Glenmede Trust Company clients and friends and does not provide investment, estate planning, tax or legal advice.When provided, investment advice is based on a client’s applicable circumstances. This material may contain Glenmede’s opinions or expectations, which may change without notice after date of publication. Information gathered from third-party sources is assumed reliable but is not guaranteed.

OLEJKO Linda Olejko is business development director of The Glenmede Trust, N.A. Contact her at 216-514-7876.

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The necessity of advance directives By MARGARET M. METZINGER, Frantz Ward LLP

veryone needs an estate plan, and every estate plan should include advance directives.

Nobody wants to think about the end of life. We don’t want to tempt the fates or acknowledge our mortality. But advance directives are vital tools in our estate planning arsenal and really are one of the greatest gifts we can leave our families and loved ones. Advance directives are written statements of your intentions regarding your future medical needs that you prepare while you are healthy and which may be used in the event you become so ill that you are unable to communicate with your medical providers. The information contained in advance directives arms your family and loved ones with the information they will need to make difficult decisions for you when you can’t speak for yourself. That’s why it is so important to have these discussions while you are healthy and can fully explain your decisions to them.You should talk to your family

and loved ones about your advance directives and end-of-life decisions, and then set it all aside and get back to your regularly scheduled life. Ohio recognizes advance directives in the form of the living will and durable power of attorney for health care. These documents work together to provide notice of your end-of-life wishes and allow another person to make medical decisions for you if you are in a terminal condition or in a permanently unconscious state, as long as two physicians agree that there is little to no chance for your recovery. The living will is a written expression of your wishes about future health care decisions so that if you are unable to make such decisions, your family, loved ones and your medical providers understand what your end-of-life expectations are. The living will specifies the type of medical treatment you want and under what circumstances extraordinary measures to prolong your life should be started or stopped.

You can also use the living will to direct whether you want a “do not resuscitate” order (DNR). If you have a DNR and you stop breathing or your heart stops, nothing will be done to try to keep you alive. If you do not have a DNR designation, you will be resuscitated and your medical team will take measures to re-start your heart and breathing using methods such as CPR, a ventilator or a defibrillator. Typically, your family and loved ones will know that you are in a medically fragile condition, but in addition to expressing your end-of-life decisions, the living will enables you to identify two or three people who should receive notice about your medical state. In a durable power of attorney for health care, you designate an agent who will make your health care decisions for you if you are terminally ill or in a permanently unconscious state and are otherwise unable to express your wishes. This document allows your agent to confer with your

medical providers to determine the best course of treatment which may include the use or discontinuation of life-saving equipment like ventilators or dialysis machines.Your agent can also request a DNR order. Likewise, your agent can request that you are provided comfort care or a treatment plan that eases pain and other symptoms and provides or discontinues artificial nutrition or hydration. Similar to the living will, in order for your agent to act under a durable power of attorney for health care, two physicians must agree that you will not likely recover. The selection of your agent is one of the most important estate planning decisions you will make. First, keep in mind that your agent will be asked to make decisions for you during what will almost certainly be an emotional time. Next, your agent has to be able to make difficult decisions in accordance with your wishes, regardless of his or her feelings or emotional state. Finally, your agent should also be comfortable conferring with your doctors regarding your treatment plan and advocating on your behalf. In your durable power of attorney

for health care, you have the ability to identify a primary agent and up to two additional agents who can make medical decisions for you. Your “back up” agents can step in if your primary agent is unable or unwilling to act on your behalf. Talk to your physicians about your medical options. Talk to you family about your wishes. Having these difficult discussions while you are healthy can help everyone understand your decisions and guide them through a very difficult time.

METZINGER Margaret M. Metzinger is a partner at Frantz Ward LLP. Contact her at 216-515-1075 or mmetzinger@frantzward.com.

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Legacy

Our donors’ generosity puts big ideas to work on discoveries and innovations, so even the smallest, most treasured moments in life are possible. That’s the legacy that donors leave here.

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CRAIN'S LIST | COLLEGES AND UNIVERSITIES Ranked by full-time equivalent enrollment on Northeast Ohio campuses LOCAL FTE ENROLLMENT RANK

COLLEGE/UNIVERSITY

FALL 2020/ 2019

% CHANGE

STUDENT: TEACHER RATIO

TUITION/ ROOM AND BOARD

% ENROLLMENT UNDERGRAD/ GRADUATE

TYPE OF INSTITUTION/ AFFILIATION

OPERATING BUDGET (MILLIONS)

ENDOWMENT (MILLIONS) 6-30-2020

TOP LOCAL EXECUTIVE

KENT STATE UNIVERSITY 800 E. Summit St., Kent 44242 330-672-3000/kent.edu

27,332 28,329

-4%

19:1

$11,587 $12,084

83.7% 16.3%

4 year public

$595.2

$138.1

Todd Diacon president

UNIVERSITY OF AKRON 302 Buchtel Common, Akron 44325 330-972-7111/uakron.edu

13,988 15,128

-8%

18:1

$9,600 $12,800

86.3% 13.7%

4 year public

$303

$235.3

Gary L. Miller president

CLEVELAND STATE UNIVERSITY 2121 Euclid Ave., Cleveland 44115 216-687-2000/csuohio.edu

12,112 12,310

-2%

16:1

$11,185 $11,834

73.3% 26.7%

4 year public

$293.8

$90.3

Harlan M. Sands president

CASE WESTERN RESERVE UNIVERSITY 10900 Euclid Ave., Cleveland 44106 216-368-2000/case.edu

10,792 11,076

-3%

11:1

$52,448 $16,080

47% 53%

4 year private

$1100

$1851

Scott Cowan interim president 1

CUYAHOGA COMMUNITY COLLEGE 700 Carnegie Ave., Cleveland 44115 216-987-6000/tri-c.edu

9,868 12,169

-19%

14:1

$3,436 —

100% 0%

2 year public

$202

$80.9

Alex Johnson president

YOUNGSTOWN STATE UNIVERSITY One University Plaza, Youngstown 44555 330-941-3000/ysu.edu

9,739 10,185

-4%

14:1

$8,414 $9,700

89% 11%

4 year public

$157.9

—

James Tressel president

STARK STATE COLLEGE 6200 Frank Ave. N.W., Canton 44720 330-494-6170/starkstate.edu

5,548 5,942

-7%

20:1

$4,310 $5,356

100% 0%

2 year public

$60.7

Para M. Jones president

LORAIN COUNTY COMMUNITY COLLEGE 1005 N. Abbe Road, Elyria 44035 800-995-5222/lorainccc.edu

5,302 5,648

-6%

15:1

$3,615 —

100% 0%

2 year public

$64.7

$51.4

Marcia J. Ballinger president

ASHLAND UNIVERSITY 401 College Ave., Ashland 44805 419-289-4142/ashland.edu

3,325 3,302

13:1

$21,480 $10,640

74% 26%

4 year private

$106.5

$47.6

Carlos Campo president

JOHN CARROLL UNIVERSITY 1 John Carroll Blvd., University Heights 44118 216-397-1886/jcu.edu

3,199 3,394

-6%

13:1

$44,406 $12,560

85% 15%

4 year private

$83

$228.7

Michael D. Johnson president

BALDWIN WALLACE UNIVERSITY 275 Eastland Road, Berea 44017 440-826-2900/bw.edu

3,137 3,233

-3%

11:1

$34,504 $11,946

84% 16%

4 year private

$129.6

$178

Robert C. Helmer president

LAKELAND COMMUNITY COLLEGE 7700 Clocktower Drive, Kirtland 44094 440-525-7000/lakelandcc.edu

2,850 3,497

-19%

13:1

$3,033 —

100% 0%

2 year public

—

Morris W. Beverage Jr. president

HIGHER EDUCATION SOLUTIONS maloneynovotny.com + 216.363.0100

OBERLIN COLLEGE 38 E. College St., Oberlin 44074 440-775-8460/oberlin.edu

2,195 2 2,833

WALSH UNIVERSITY 2020 E. Maple St. N.W., North Canton 44720 330-490-7090/walsh.edu

-23%

9:1

$57,654 $17,334

99% 1%

4 year private

$151.1

$936.3

Carmen Ambar president

2,024 1,895

12:1

$29,910 $5,570

70% 30%

4 year private

$77.9

$29.3

Timothy J. Collins president

THE COLLEGE OF WOOSTER 1189 Beall Ave., Wooster 44691 330-263-2000/wooster.edu

2,008 1,937

10:1

$54,000 $12,750

100% 0%

4 year private

$84.1

$330.5

Sarah Bolton president

UNIVERSITY OF MOUNT UNION 1972 Clark Ave., Alliance 44601 800-992-6682/mountunion.edu

1,936 2,008

-4%

12:1

$32,200 $10,700

90% 10%

4 year private

—

Thomas J. Botzman president

MALONE UNIVERSITY 2600 Cleveland Ave. N.W., Canton 44709 330-471-8100/malone.edu

1,216 1,330

-9%

13.2:1

$31,416 $9,900

76% 24%

4 year private

$28.7

$21.1

David A. King president

NOTRE DAME COLLEGE 4545 College Road, South Euclid 44121 216-381-1680/notredamecollege.edu

1,215 1,396

-13%

13:1

$30,050 $10,130

92% 8%

4 year private

$23.1

$10.6

Mike Pressimone president

LAKE ERIE COLLEGE 391 W. Washington St., Painesville 44077 440-296-1856/lec.edu

1,051 1,138

-8%

14:1

$31,736 $10,160

77% 23%

4 year private

$21.1

$32.4

Brian D. Posler president

NORTHEAST OHIO MEDICAL UNIVERSITY 4209 State Route 44, Rootstown 44272 330-325-2511/neomed.edu

983 958

10.6

$39,470 3 —

0% 100%

4 year public

$63.7

$22.7

John T. Langell president

HIRAM COLLEGE 11715 Garfield Road, Hiram 44234 330-569-3211/hiram.edu

910 4 967

-6%

12:1

$24,500 $10,290

98.3% 1.7%

4 year private

$29

$72.7

David P. Haney president

URSULINE COLLEGE 2550 Lander Road, Pepper Pike 44124 440-449-4200/ursuline.edu

866 817

8.5:1

$34,290 $11,232

61.5% 38.5%

4 year private

$30

$47

Christine De Vinne president

CLEVELAND INSTITUTE OF ART 11610 Euclid Ave., Cleveland 44106 216-421-7000/cia.edu

593 645

-8%

10:1

$41,490 —

100% 0%

4 year private

—

Grafton J. Nunes president, CEO

Researched by Chuck Soder: csoder@crain.com | Information is supplied by the schools. NOTES: 1. Eric Kaler is scheduled to become president of Case Western on July 1, 2021. 2. Oberlin's fall enrollment was impacted by the college's switch

from two semesters to three. The switch was made to limit the spread of COVID-19 by reducing the number of students on campus. 3. $22,620 for the College of Pharmacy; $583 per credit hour for the College of Graduate Studies 4. This figure excludes many dual enrollment high school students who did not start classes until after Hiram calculated its official enrollment figure due to the coronavirus pandemic. With those students, Hiram’s 2020 enrollment would have been roughly flat year over year.

Get +150 school officials and historical data in Excel format. Become a Data Member: CrainsCleveland.com/data 26 | CRAIN’S CLEVELAND BUSINESS | November 2, 2020

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CLIFFS

the expansion will depend on dejust one part of a larger, integrated mand in the steel industry. Additionsteelmaker. ally, buying older facilities could “I think, frankly, it’s a shrewd From Page 1 mean Cleveland-Cliffs will have to move,” Kenyon said. He said he thinks the acquisitions Goncalves came to Cleve- spend to upgrade them down the will improve the cost positions for land-Cliffs as part of a proxy fight line. And the company will have adthe steelmaking assets and reduce launched by activist shareholder ditional pension and post-retirement Cleveland-Cliffs’ exposure to the Casablanca Capital LP. From the liabilities that it didn’t previously have, Gibbs said. merchant pellet business. It also distart, he was upTyler Kenyon, versifies the end markets the compafront about his vice president ny serves and strengthens its posiplans to reverse and equity retion in the automotive supply chain. the mistakes he search analyst at To that end, Cleveland-Cliffs is althought the comCowen, said the ready more than an iron ore supplier pany had made North American and steelmaker. Through what had in expanding. In — Lourenco Goncalves, chairman, blast furnace been an AK Steel subsidiary, it even the years that fol- president and CEO of Cleveland-Cliffs market, which makes automotive components in an lowed, Clevehad been Cleveautomated plant. land-Cliffs exited “This is the future,” Goncalves said. operations in Canada and Australia, land-Cliffs’ core business, is under “This is where things are going.” focusing its business in the U.S. (It “significant stress.” Goncalves took also changed its name from Cliffs the low-cost pellet-making operaRachel Abbey McCafferty: (216) Natural Resources Inc. back to Cleve- tions that had been serving those Cleveland-Cliffs subsidiary Precision Partners makes automotive body and structure customers and instead made them components using robotic-operated equipment. | CLEVELAND-CLIFFS 771-5379, rmccafferty@crain.com land-Cliffs Inc.) Those assets outside the U.S. had not contributed to the company’s profitability, Goncalves said. Cleveland-Cliffs was making money in the U.S. and spending it on operations outside of the country, in the hopes that they might someday turn a profit. The U.S. business was the company’s core. Once the work of divesting was done, Cleveland-Cliffs started to reinvest and expand. This time, the goal was to turn it into a domestic integrated steel company. The first step toward that goal was to establish a new hot briquetted iron plant in Toledo, which will serve electric arc furnaces. That will be up and running by the end of 2020, Goncalves said. Goncalves said his initial reticence around sharing his vision of Cleveland-Cliffs as a steel producer was in part because he wasn’t sure the steel mills would be willing to sell. That has not turned out to be a problem. In March of this year, Cleveland-Cliffs acquired flat-rolled carbon, stainless and electrical steel product maker AK Steel Holding Corp. Six months later, in September, it announced plans to also acquire ArcelorMittal USA LLC and its subsidiaries in a $1.4 billion deal. That The John Carroll University oronavirus, record acquisition is expected to close in the grad has been with the Greater unemployment, and a fourth quarter of 2020. Both acquisitions have the same Cleveland Food Bank for 20 huge dip in volunteering goal, Goncalves said: to grow the years and was named one of meant more Clevelanders company and to support U.S. manuCrain’s 2020 Women of Note. in need of help, and fewer facturing. The steel Cleveland-Cliffs JCU solidified her lifetime people able to give it. But is and will be producing supports industries as varied as automotive, passion for volunteering for the Greater Cleveland HVAC and health care. Goncalves when she discovered the Food Bank, new challenges wants to be in spaces where the difference she could make. just meant they needed new products have a high-value add to consumers; he’s not interested in She didn’t realize it would solutions. And with proactive commodity products. shape her future. community partnerships, In 2019, the Greater Cleveland He’s also not interested in making touchless food pickups, and Food Bank served more than big cuts at the companies Cleveland-Cliffs has acquired. From Gonthe hard work of dedicated 350,000 people in Northeast “I HAD NO IDEA I calves’ perspective, the company Clevelanders, they were able Ohio. Without the Food Bank, COULD TURN IT INTO isn’t buying them to downsize or to support more people than and without Kristin, many A CAREER,” she said. shut them down. He wants to intethey even expected. Clevelanders wouldn’t know grate them into Cleveland-Cliffs’ operations. For a plant like ArcelorMitwhere to turn. Warzocha said her education tal’s Cleveland facility, that means For Kristin Warzocha, prepared her to serve and the raw material it used to buy from President and CEO of the lead—a powerful combination Cleveland-Cliffs will now be an inhouse product. Greater Cleveland Food Bank, that has allowed her to make Cleveland-Cliffs has adapted to giving up wasn’t an option. a huge impact on Cleveland; Find her story and others at become a steelmaker, as opposed to working, advocating, and jcu.edu/humanimpact a raw material supplier, said Phil Gibbs, senior equity analyst at Keyfighting for those whose “IT WAS NEVER A Banc Capital Markets. voices often go unheard. MATTER OF IF, BUT That could “defensively ensure HOW,” Warzocha said. their survival,” Gibbs said. The recent acquisitions have seen CleveBRAVE land-Cliffs buying their customers YOUR and controlling more of the iron ore QUEST and steel supply, which could allow the company to cut costs. There are also risks to the recent acquisitions, he noted. The success of

“THIS IS THE FUTURE. THIS IS WHERE THINGS ARE GOING.”

SHE LEADS SOME OF

NORTHEAST OHIO’S MOST

WORKERS. C

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NOVEMBER 2, 2020 | CRAIN’S CLEVELAND BUSINESS | 27 8/25/20 10:53 AM

10/30/2020 3:05:17 PM

AKRON REAL ESTATE

Home values in Akron are on a 10-year rise

Strong demand, low inventory and even lower interest rates combine for a steady increase in hom BBY DAN SHINGLER

If you bought a house in Akron in 2010, it’s likely worth a good deal more today than what you paid for it. The median home price in the city has gone from $55,000 in 2010 to $97,000 today, for an increase of just over 75%, according to data from the Akron Cleveland Association of Realtors. If you purchased a house in 2011, you might be even further ahead, as the median sales price for that year dipped to $39,700, the association’s data shows. Though observers think that was an anomaly that reflected a very slow market as a result of the Great Recession. There’s no denying that Akron home prices have been increasing, though, and the median sales price has steadily gone up each year since 2011. So what’s driving the increase? It’s not an influx of new high-end homes. Most of Akron’s residential construction in recent years has been for apartments, not houses. It’s not confined to the city’s best neighborhoods, either. Akron has seen a solid increase in the value of most of its housing across all neighborhoods, with older homes rising in value, too, said Jason Segedy, Akron’s director of planning and urban development. “When I look at listings across the city, even in areas where our values are pretty low, they appear to be up significantly from where they were several years ago,” he said. “Neighborhoods where houses are going for $60,000 or $70,000 had prices in the $30s or $40s (thousands) a few years ago. In my neighborhood (Wallhaven), they were scraping down near $100K, now they’re back to $160K or so.”

Low inventory and low interest rates are driving up home prices in Akron. And it’s not just prices for new houses. Homes prices across all neighborhoods — Cascade Valley is seen here — are increasing. | CRAIN’S FILE PHOTO

Median home prices rise Aside from an early dip that real estate observers attribute to leftover effects from the Great Recession, home prices in Akron have been on a steady climb for the last 10 years as a shortage of houses for sale, an influx of buyers and low interest rates converged. $100,000

$97,000

$80,000 $55,025 $60,000 $40,000 $20,000 0

’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20

SOURCE: Akron Cleveland Association of Realtors

What’s happening, real estate professionals say, is a perfect storm of conditions that have created the strongest seller’s market and the shortest supply of homes they’ve seen in decades. It’s a combination of low interest rates, increasing demand for homes, a very short supply of inventory and relatively few places for homebuilders to put up new subdivisions, they said. “Ultimately, the economy is still good, consumer confidence is high, there’s affordable housing and with the national average interest rate being 2.75%, it’s unbelievable,” said Beth Rodgers, president-elect for the Akron Cleveland Association of Realtors, of the current market. Those low interest rates are a huge driver of higher prices, Rodgers and others said. Even seasoned real estate brokers said rates are the lowest they’ve ever seen. “Howard Hannah did approve quite a few people at 2.5% for a 30-

ICP

From Page 1

Underscoring the family connection, Austin Semarjian, the owner’s son and a vice president at ICP, found the opportunity that the firm is undertaking. He was talking to home improvements retailer Menards for a different site ICP controls and learned it wanted to do a store on some of the Geauga Lake land. That caused ICP to focus on the sprawling site for the first time. The Cedar Fair sale literally sets potential construction on the site in motion. A land sale to Menards for one of the Eau Claire, Wis.-based chain’s home improvement stores fronting on state Route 43 took place simultaneously with the larger deal. How did Austin Semarjian interest his father in undertaking a variation from its core business and such a leviathan in terms of property development? “Once we found some prospective users, he was interested,” the younger Semarjian said. “He’s a deal junkie.” The site will include additional retail locations, a proposed mixed-use restaurant and entertainment district, and a residential office district near the lake, as well as multifamily residential and institutional sites.

Industrial Commercial Properties of Solon envisions the former Geauga Lake amusement park site as a mix of large retail buildings, multifamily properties and a mix of office, restaurant and related uses. | RDL ARCHITECTS RENDERING

Although ICP’s name is synonymous with industrial real estate projects, its 140-property portfolio in Ohio and Michigan also includes office and commercial uses that total 42 million square feet. There will be no industrial property at Geauga Lake. “It’s too far from the highway” to be competitive for industrial use, Chris Semarjian said. He noted the company has retail properties in its holdings, as well as ICP staffers, from both the former Forest City Realty

Trust Inc. and SITE Centers, which have land development and retail expertise. Moreover, he said ICP has vast experience with land from buying former stores, offices and massive industrial buildings and converting them to new use. However, ICP will not plan to do every project at the Geauga Lake District alone. For example, the firm is entertaining offers from developers of multifamily properties to develop the 300-

year fixed (mortgage rate). I just can’t get over these interest rates. I’m in my 32nd year, and I’m amazed by this,” Rodgers said. Luxury apartments that developers keep building in Akron might be having an effect, too, because they’re part of a trend of rising rents in town. That began when the 2009 recession forced many out of their homes and into apartments, said Jim Fox, vice president of sales and operations manager for Berkshire Hathaway HomeServices Stouffer Realty in Fairlawn. “The other thing that’s pushed people into buying homes and created this huge wave of buyers is increasing rents. … The rental (sector) has actually priced itself out of the market,” Fox said. Meanwhile, he said, there are not enough homebuilders or enough vacant land. “The homebuilding market is anemic,” he said. “That part of the mortgage meltdown really has not recovered, the new construction realm. A lot of mom-and-pop builders are out of business, and land is really scarce in a lot of areas.” That shortage of land for new subdivisions is likely one reason there’s been intense interest in Merriman Valley, where the city of Akron recently requested and received proposals to develop 45 acres it owns there on Theiss Road, Fox said. Plus, homes that have been built in Akron tend to be middle-market houses, selling for $200,000 to $300,000. That doesn’t produce home sales the way the construction of more expensive homes does, Fox said. That’s because, he said, when a $500,000 home is built, the buyer often vacates a $350,000 home to move.

Then when someone buys their old house for $350,000, that buyer vacates a $250,000 home, and so on. “With one lost build, you lose three, sometimes four buyers. … That hurts the economy and the housing market drastically” in terms of available supply, Fox said. Much of the upward trend in home prices in recent years also is from the growing national and local economies, Fox and Rodgers said. But if that’s the case, why hasn’t demand for homes gone down this year as people lost jobs? Two reasons, they said. One, according to Fox, is that a lot of the people who lost jobs in the pandemic were renters — often young people who weren’t yet at the stage in life when they would buy a home. Another reason, cited by Fox and Rodgers, is that the pandemic actually is driving people into the market as buyers. “A lot of the buyers are currently doing their work from home, and they’re finding that they either need more room or less room. A lot of my clients are changing homes because of that,” Rodgers said. All of this is good for the city, Segedy said, because when it comes to housing, success begets success. Higher home prices incentivize absentee landlords to invest in their properties and enable homeowners to access equity to improve their houses. Plus, when one house on a street is improved, it increases the chances that neighboring homeowners will follow suit, he said. Segedy also credited the city’s push for residential investment, which includes a 15-year property tax abatement on new construction and increased home values from home improvements.

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some apartments that would go on multifamily-zoned parcels. And Menards may not be alone among retailers to build and own their own structures on the site. Moreover, ICP may entertain joint ventures, particularly in segments such as office or even office-residential use. “We have asked everyone we work with to focus on architecture,” Chris Semarjian said. “Its not about selling land. I’d rather leave a little room on the negotiating table for architecture. We have structured this so we will be able to maintain design control.” One reason for exerting such design control is that it was necessary to do so to obtain support from Bainbridge Township trustees for ICP’s plans, particularly the desire to pay homage to the old landmark with elements of the new project. To that end, the proposed street that will provide access to sites on the lake’s west side will be called Geauga Lake Boulevard. An element of public art recalling the Big Dipper, a famous wooden roller coaster at Geauga Lake Park, is included in designs for the entrance of the new development. Some large land developments don’t have names, but this one will have signage for itself as the Geauga Lake District. Some old roller coaster cars also may find their way to be displayed in the district, according to Chris Salata,

ICP’s chief operating officer. “A lot of us grew up in Northeast Ohio and remember visiting this park while we were growing up,” Salata said. “It was very important to see that history remembered. That nostalgia is important to public officials and the public. We’ll also have a significant amount of green space and connectivity (such as conservation areas and walking trails) to give it connectivity and create a lifestyle environment.” For Jeff Markley, a landscape architect and longtime Bainbridge Township trustee, ICP’s willingness to accept that vision was not negotiable, a sentiment shared by the other trustees. The other proviso is that all of the lakefront surrounding the 50acre body of water has to remain available for public use, which ICP agreed to do. Bainbridge also had to work around the limitations of Ohio law because it’s a township, Markley said. Bainbridge Township could not authorize a development agreement such as cities often do. The solution: a Geauga County lawsuit so the judge could tell the parties to negotiate a settlement or the court would do it. The court settlement was timed to go into effect simultaneously with the closing of the property sale. ICP publicly set the basis for that agreement — and the court case —

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28 | CRAIN’S CLEVELAND BUSINESS | November 2, 2020

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Dan (216

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“That might manifest itself in the prices,” he said. “The mayor’s been very vocal about rebuilding the city’s population and building housing, and I think a lot of people have confidence the mayor’s not going to just let Akron go gently into the night.” As for increasing the inventory of homes for sale, there are new houses coming online, Segedy said, including more than 80 homes planned on the site of the old Perkins Middle School on Mull Avenue. But those homes and others are mostly still in the planning stages. Meanwhile, residential real estate agents are getting nervous that they may soon have nothing to sell. “In almost all of Summit County, you have less than three weeks of inventory and then you’re completely out of business. … In other words, if no more homes come on the market, there would be no homes to buy in three weeks,” Fox said. That’s a stark difference from previous times. “We used to say that anytime you had four or five months of inventory, it was a balanced market. Anything over that was a buyer’s market, and anything under that was a seller’s market,” Fox said. But even sellers have a challenge ahead of them in this market, he said. “You look at who’s in charge of the market, and by far — by far — it’s the seller. But if you sell a house now, you can’t buy a house,” because you likely can’t find one, he said. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler with the township zoning board’s rejection of an initial proposal last January. However, a more difficult arrangement had to be engineered to ensure the delivery of sewer and water lines to the site from Aurora. The lack of utilities was a factor in the demise of a prior plan for big retailer Meier to take a 50-acre chunk of the township land. Trustees had fruitlessly explored multiple options for utilities. The only solution: a Joint Economic Development District (JEDD) under state law, which eluded the city and township since 2013. Tony Visconsi, a managing director who headed a Hanna Commercial team handling the offering for Cedar Fair since 2017, said the need for the JEDD, along with costs for demolishing or redeveloping structures left over from the park, torpedoed about 50 prospects from pursuing the township land. “ICP was familiar with JEDDs,” Visconsi said in an interview. “It wasn’t easy getting the (township and city) together, especially with money involved. The key was the ability of ICP to broker a deal between Aurora and Bainbridge to secure utilities. ICP did a masterful job helping the parties come together.” The JEDD, adopted in September, became effective just prior to the property sale. In addition to Aurora

Under the SBRG program, $500,000 (representing 50 grants) will be dedicated specifically to each of Ohio’s 88 counties until Nov. 23. If all those funds, which total $44 million, are not spent, the money will be added to the $81 million available to any business in the state, regardless of location, on a first-come, first-served basis until all $125 million is awarded. With more than 950,000 companies falling under the small business designation in Ohio, Mihalik said she’s confident the grants will be in high demand. But that anticipated high demand, coming months into the pandemic, has some people questioning if the program provides too little help, too late. “Families and businesses have been suffering for some time now,” said state Rep. Terrence Upchurch, a Democrat representing District 10, which includes Cleveland. “Businesses in my district and districts all over the state of Ohio have already closed their doors permanently.” Upchurch, along with other members of his party, criticized Republican Gov. Mike DeWine for waiting so long to release the federal funds, which if not spent by the end of the year are slated to revert to the federal government. He’s also concerned by what he sees as the state’s insular process, which was not done legislatively, in creating the program, and he worries that businesses most affected by the pandemic still will be left behind. The Beachland Ballroom & Tavern, Upchurch points out, has been looking for economic relief to supplement truncated cash flow coming only from occasional food sales, online merchandise sales or hosting of socially distanced, outdoor or livestreamed shows. Beachland’s Cindy Barber, who has lost the majority of her normal concert season revenue and operates at a margin as thin as 1% during a normal year, has been holding out hope for receiving fees for providing utilities, the JEDD divides proceeds from the 2% municipal income tax levied on occupants of the site; 25% goes to both the city and township, 25% to Aurora utility department for operations, and 25% to the JEDD needs of the district. “I’m excited and optimistic for it all to begin,” Markley said. “We would not let the lake be privatized. I’m hoping a future phase will include a museum to house artifacts from the site collecting dust in people’s basements.” Anne Womer Benjamin, Aurora’s mayor, said in a phone interview, “I’m pleased there is an interested partner willing to undertake that redevelopment. I think it will be beneficial to Bainbridge and Aurora and all of Northeast Ohio for the site to be productive once more.” Semarjian said that in addition to the initial Menards store, prospects from apartment developers to restaurateurs are in talks for sites. “It’s our hope that with utilities and proper zoning there will be strong demand ... for high-end aesthetics and quality construction,” Salata said. “This is a multiyear development project, and we will see how quickly it develops.” Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

passage of the federal Save our Stages Act, which would allocate millions in stimulus funds for indie music concert venues across the country. Barber received some assistance this year in the form of PPP and EIDL, but she’s now using credit and donations to cover other gaps. Barber said she plans to apply for the $10,000 small business grant from the state. But the reality is the money, if she gets it, will be a drop in a deep bucket in the context of her financial needs. “To me, right now, $10,000 is like, one payroll and a couple bills. That maybe gets me another 15 days,” Barber said. “Proportionally, that is not going to save the Beachland.” According to an Oct. 23-26 survey conducted by the National Federation of Independent Business (NFIB) Research Center, 90% of PPP recipients have spent the funds and are ready to apply for loan forgiveness. In Ohio, 88% of NFIB members who spent their PPP funds used it mainly on wages, utilities and rent or lease costs. About 75% of small businesses nationwide said they would apply for a second PPP loan, and 52% of owners anticipate needing additional financial support over the next 12 months. Michael Obi, who oversees the entrepreneurship center for the Urban League of Cleveland, is appreciative of the SBRG program but worries it will not be enough for a county as large as Cuyahoga. “Fifty grants per county for Cuyahoga County is a drop in the bucket, and you can imagine the money will be gone within 48 hours after it opens up,” Obi said. Cuyahoga County, according to 2018 U.S. Census data, has 32,254 total “employer establishments,” or

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

business locations, with a corresponding 667,707 employees. By contrast, neighboring Lake County has 5,908 employer establishments and 85,772 in total employment. Overall, though, the SBRG program is a positive for the region’s struggling business owners, Obi said. “Every little bit helps, because it is $10,000, and that is a lot of money if you’re trying to survive, when you are trying to pay rent and make payroll or just trying to keep the doors open on a restaurant or operating at 50% capacity if you have a barber shop,” he said. Obi said the region needs targeted grants for those companies he knows are hurting badly, rather than creating a first-come, first-served system requiring online capabilities to sign up. He also worries the program’s W-2 wage requirement may be too restrictive. Tony Jones, the owner of T.J.’s Barbershop on Cleveland’s East Side, plans to apply for one of the $10,000 grants when the state’s portal opens Nov. 1. Under the program’s terms, though, it appears that he will not qualify. The other barber in Jones’ shop is an independent contractor. He does not have any W-2 employees. “The grant would pay my rent for a year, and my utilities, and allow me to take whatever I get out of here and add to the contribution at home — which has been minimal, because people are slow to come back because of the virus,” he said. Jones, who has been a barber for three decades and a business owner for 11 years, was forced to close his shop on East 105th Street from midMarch to mid-May during a statewide shutdown. He struggled to get unemployment, even after the state began accepting applications under

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an expanded program that covered self-employed workers. Many of his customers are elderly. They’re still afraid to come in. And the financial strain on his patrons, who live nearby or have roots in the neighborhood, has increased. “We missed out on so much during the shutdown,” Jones said. “And with the schools not going back to school, we missed out on back-to-school haircuts. Proms. Graduations.” He has been looking for additional grant and loan programs that might help him sustain his small business and support his family. With the state putting money on the table, Jones said, he will at least try to compete. There are significant complexities in setting up a grant program to deal with economic hardship of this magnitude in the state, Mihalik said. Nonetheless, she said she’s confident the SBRG program will help Ohio businesses. “We have gone through a process in developing these programs and seeing what the need is out there and we pinpointed different areas where we really thought we could make an impact,” she said. But in light of the NFIB’s finding that 20% of small business owners expect to have to close their doors if current economic conditions do not improve over the next six months, Mihalik stresses the importance of these grants going out as soon as possible. “The total economic impact is not going to be totally understood for quite some time, but we are going to continue to keep our eyes open and ear to the ground and get these dollars out the door,” she said. Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive

Advertising Section

CLASSIFIEDS To place your listing in Crain’s Cleveland Classifieds, contact Suzanne Janik at 313-446-0455 or email sjanik@crain.com BUSINESS OPPORTUNITY

AUCTIONS

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NOVEMBER 24, 2020, 11AM | REGISTRATION AT 10AM EST Location: Drury Inn & Suites Cleveland Beachwood 4100 Orange Pl, Orange Village, OH44122 Inspection: Thursdays, November 5, 12 & 19 from 2-3:30PM EST OUT OF STATE INVESTOR ORDERS THE IMMEDIATE SALE! PARCEL 1:

32125 SOLON RD, SOLON, OH 44139

THE SOLON MARQUIS - 43,000± SF CLASS A OFFICE BUILDING

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3 miles to I-80 10.4± AC

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Two-story, glass & block structure built in 2000 w/ 160 parking spaces on 4.29± Ac. includes nearly 50 remodeled offices, open collaboration areas, a 60-person auditorium, numerous conference rooms, + MUCH MORE! Access to I-480, I-271 and U.S. Route 422 & just 30 min. from Cleveland & Akron, just two hours from Pittsburgh and Columbus, Zoned I-2 Industrial. 6% Buyer’s Premium

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Broker: Colliers International OH RE Salespersons Scott Repie & Joe Bauhof

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For Due Diligence Package HTTP://COLLIERSAUCTION.LISTINGLAB.COM/NOV24OHEAST DISCLAIMER: The information contained herein is subject to independent inspection and veriﬁcation by all parties relying on it. No liability for its inaccuracy, errors or omissions is assumed by the sellers or broker/auctioneer. All acreage, square footage, and dimensions are approximate. This offering may be withdrawn, modiﬁed, or canceled without notice at any time. Each property is subject to prior sale. This is not a solicitation or offering to residents of any state or jurisdiction where prohibited by law.

November 2, 2020 | CRAIN’S CLEVELAND BUSINESS | 29

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PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainscleveland.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ARCHITECTURE

FINANCIAL SERVICES

MANUFACTURING

REAL ESTATE

SERVICES

ThenDesign Architecture (TDA)

Ancora

ShotStop Ballistics Technologies, LLC

SVN Summit Commercial Real Estate Group, LLC

Leaf Home Solutions

ShotStop is excited to welcome Regina Larkin as Director of Business Development. Regina is focused on executing the strategy to meet increased customer demand and fast-track new innovative products to commercialization, while simultaneously identifying and engaging private equity investment partners. She is able to utilize her expertise in strategy, growth, business development, product, sales and capital raising. Regina will be instrumental in ShotStop’s continued rapid growth trajectory.

The SVN Summit Commercial Real Estate Group, LLC team is welcoming Jenna Blanchfield as a new Associate Advisor. Jenna, a current member of the SVN Office Council, specializes in investment properties, land development, office spaces, and sales and leasing on the SVN team. With a background in title insurance and strong relationship building skills, she brings a wealth of knowledge in business operations and integrated technology solutions.

TDA welcomes Rhonda Franklin, NCIDQ, WELL AP, LEED AP ID+C to the firm as a Senior Interior Designer. With a background in educational design, she brings over 19 years of experience creating dynamic, functional and appropriate environments for clients. She will leverage her talents to serve the firm’s education projects and enhance designs and processes. Outside of the office, Rhonda spends her time as a ceramic artist and with family exploring the Cleveland Metroparks.

We are very excited to announce that Jagger Makhecha has joined Ancora as an Assistant Vice President and Financial Analyst. Jagger will assist the finance group in their cross-departmental support of the firm to deliver insights and actionable analyses with the goal of improving business performance. Jagger earned a Finance - Bachelor of Science in Business degree from Miami University Farmer School of Business with a minor in International Business and a China Business Program Certificate.

CONSULTING

Radcom, Inc. Radcom is pleased to announce that Jamie Davies has joined the firm as Business Relationship Manager. He brings more than Davies 15 years of experience in business development, account management and administration, strategic sales and marketing, business process optimization, organizational leadership, and customer service to the Radcom team. Radcom is also pleased to announce that Kate Graham has joined the firm as Associate Operations Manager. She draws upon a decade of experience Graham in the learning and development industry to provide learner experience and instructional design, technical writing, editing, and project management support to clients, helping them achieve higher levels of individual and organizational performance.

INSURANCE / FINANCIAL SERVICES

NONPROFITS

Sill

American Cancer Society

REAL ESTATE

William Mangelluzzi brings over 30 years of experience to Sill. Prior to joining Sill as a licensed public adjuster, he owned a premier restoration company specializing in commercial properties. He has been a claims advocate, disaster contractor, consultant and independent adjuster and holds numerous industry certifications including Fire, Water, Smoke & Mold. He has also worked hurricane loss claims for leading insurance companies. He attended John Carroll and Ohio Universities.

The American Cancer Society, North Central Region is pleased to welcome Lenora Oeters as the Executive Director for Ohio, Northern Kentucky and West Virginia. She most recently served as Strategic Director of Distinguished Partners Events at the American Cancer Society’s Global Headquarters in Atlanta, Georgia. Oeters will be managing and growing leadership boards, leading the states’ staff and volunteer teams and driving regional strategic growth priorities for mission, revenue and advocacy.

SVN Summit Commercial Real Estate Group, LLC

SHARE YOUR COMPANY’S JOURNEY Feature your latest milestones, launches, partnerships, awards and more in Crain’s

For more information, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSCLEVELAND.COM/COTM

30 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 2, 2020

The SVN Summit Commercial Real Estate Group, LLC team is welcoming Brad Weidman as a new Associate Advisor. Brad is a member of the SVN Hospitality Council and specializes in sectors including hospitality, retail, office, industrial, land, investments, sales and leasing at SVN. As a former sales manager of a large prestigious media co., he brings a background in marketing strategies, win-win negotiations, and a collaborative approach to partnering with property owners, buyers, and the SVN team.

Leaf Home Solutions (LHS) is pleased to announce the appointment of Matt Barresi as the new President of Leaf Home Enhancements (LHE) and Head of Product Marketing of Leaf Home Solutions. Barresi brings to LHE more than a quarter-century of experience and brand-building expertise. Prior to joining the LHS team, Barresi served as CEO of G3 Marketing, an experiential and content company that serves Fortune 500 Brands. Previously he spent over 20 years at Procter & Gamble including more than a decade at the Vice President level. Leaf Home Enhancements, a new vertical of Leaf Home Solutions, launched in 2020 and Barresi will be responsible for leading the strategic direction & growth for the company.

SERVICES

Leaf Home Solutions Leaf Home Solutions (LHS) is excited to welcome Tim Castree as its Chief Growth Officer, a newly created role. In this role, Castree will oversee all marketing and call center operations for LHS and its subsidiary brands, LeafFilter Gutter Protection and Leaf Home Safety Solutions. Castree is an advertising industry veteran who has held a variety of leadership roles in advertising, media, and ad-tech companies. Most recently, Castree was the Digital Director for Mike Bloomberg’s 2020 Presidential campaign and he serves as a Senior Advisor to Hawkfish, the Bloomberg-backed digital and data marketing firm. Castree looks forward to guiding the growth and expansion of LHS into new categories and geographies.

CRAIN’S CLEVELAND LOOK BACK | EVOLUTION OF THE CAVS

Cavs leap from laughingstock to champions

crainscleveland.com

Thirty-six years before the Cleveland Cavaliers ended the city’s championship drought, there was Ted Stepien. Long before the Cavs became the first team to overcome a 3-1 deficit in the NBA Finals, there was an ownership tenure that was so incompetent the league had to intervene. Yes, the Cavs certainly have come a long way. And in some respects, they still have a ways to go, as they must prove they can be title contenders when LeBron James isn’t carrying much of the burden. — Kevin Kleps

``THE HISTORY During a fouryear period to start the 1970s, Nick Mileti strung together deals that would lead to controlling interests in the Cavs, Indians and Richfield Coliseum. The 1975-76 Stepien Cavs, in their sixth year of operation, advanced to the Eastern Conference finals, thanks to a scintillating first-round win over the Washington Bullets that was dubbed the “Miracle of Richfield.” The Cavs, though, were said to be losing millions, and things got so out of hand that the organization, in a span of a few months in 1980, changed hands three times — from Mileti to Louis Mitchell to Joseph Zingale (Mileti’s cousin) to Stepien. Stepien was a successful Cleveland businessman who became known for a hands-on approach that included terrible trades (hence the “Stepien Rule,” which prevents NBA teams from making deals that leave them without first-round draft picks in consecutive years), regime changes (five men served as head coach in Stepien’s three seasons as owner), and odd promotions and game-day experiences. Mercifully, the Cavs were sold again in 1983, this time to brothers Gordon and George Gund. The Gunds brought some stability — and eventually, a plethora of playoff appearances. In an 11-year stretch under coaches Lenny Wilkens and Mike Fratello, the Cavs made nine postseason trips. Quicken Loans founder Dan Gilbert purchased a controlling interest in the Cavs for $375 million in 2005. (Gordon Gund still maintains a 15% stake in the team.) At the time of Gilbert’s purchase, the Cavs were in the second season of the first LeBron era. That one ended badly, via “The Decision” and “The Letter,” but James’ triumphant return in 2014, while not without drama, produced four straight Finals appearances and the franchise’s first championship.

``IN THEIR OWN WORDS “The fact is, I took over a club from Nick Mileti that was going down. He couldn’t pay his bills.” ——Ted Stepien, to the New York Times, on the situation he entered upon purchasing the Cavs in 1980

“You realize in high school, ‘Most likely I’m not going to be a professional athlete. So one day, I’ll buy a team.’ ” ——Cavs owner Dan Gilbert, to Cleveland Scene in 2006

Cavs owner Dan Gilbert handed off the Larry O’Brien trophy to LeBron James after the Cavs defeated the Golden State Warriors in Game 7 of the NBA Finals on June 19, 2016. | BECK DIEFENBACH/AFP VIA GETTY IMAGES

``WHY IT MATTERS TODAY Gilbert has brought financial clout, plus a “whatever it takes” mentality, to Cleveland’s NBA franchise. The entrepreneur with extensive Detroit and Cleveland real estate holdings brought his mortgage business public as Rocket Companies Inc. in August. His net worth has since soared from $6.5 billion to $42.5 billion in less than a year, according to Forbes. Gilbert hasn’t been as visible since suffering a stroke in 2019, but his imprint continues to be all over his family of companies. The Cavs recently completed a $185 million renovation ($70 million of which was publicly financed) of the since-renamed Rocket Mortgage FieldHouse. They’ve competed in six conference finals and five NBA Finals in the last 14 seasons.

What they haven’t done of late is have success without James. The Cavs are a combined 38-109 since James left for the Los Angeles Lakers in 2018. In their 50-year history, they are 218 games above .500 with James on the roster (560-342 in the regular season) and 519 games below .500 when he isn’t (1,307-1,826). Cleveland’s latest post-LeBron rebuild is being led by a pair of lottery picks in Collin Sexton and Darius Garland, a promising second-year player in Kevin Porter Jr., forward Larry Nance Jr. and a notable championship holdover in five-time All-Star Kevin Love. They have the fifth pick in the 2020 NBA draft, plus a favorable salary-cap situation. Things could be looking up, though serious playoff aspirations likely will require the addition of a star or two in the coming seasons.

“LeBron is different because he’s such a special athlete. He gives Cleveland a global brand presence that is more valuable than the orchestra.” ——Economist Ned Hill, to Crain’s, on James’ return to the Cavs in 2014

“I came back for a reason. I came back to bring a championship to our city.”

BIG BOOST: A $10 million gift from the Howley Foundation will help Cleveland Clinic expand its ASPIRE Nursing Scholars Program in partnership with Ursuline College. The Clinic es-

tablished ASPIRE, a high school and college program, with support from the foundation and in collaboration with Cuyahoga Community College

in an effort to increase diversity in health care, address opportunity gaps and reduce health disparities. The new funding and partnership

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits. (216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter. (216) 771-5437 or michelle.jarboe@crain.com Amy Morona, Higher education. (216) 771-5229 or amy.morona@crain.com Rachel Abbey McCafferty, Manufacturing, K-12 education/ technology. (216) 771-5379 or rmccafferty@crain.com Jay Miller, Government. (216) 771-5362 or jmiller@crain.com Jeremy Nobile, Finance/legal/beer/cannabis. (216) 771-5255 or jnobile@crain.com Kim Palmer, Government. (216) 771-5384 or kpalmer@crain.com Dan Shingler, Energy/steel/auto/Akron. (216) 771-5290 or dshingler@crain.com

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Local sales manager Megan Norman, (216) 771-5182 or mnorman@crain.com Events manager Erin Bechler, (216) 771-5388 or ebechler@crain.com Integrated marketing manager Michelle Sustar, (216) 771-5371 or msustar@crain.com Managing editor custom/special projects Amy Ann Stoessel (216) 771-5155 or astoessel@crain.com Associate publisher Lisa Rudy Senior account executive John Petty Account executives Laura Kulber Mintz, Loren Breen, Mara Broderick People on the Move manager Debora Stein, (917) 226-5470, dstein@crain.com Pre-press and digital production Craig L. Mackey Office coordinator Karen Friedman Media services manager Nicole Spell Billing YahNica Crawford Credit Thomas Hanovich CUSTOMER SERVICE

Customer service and subscriptions: (877) 824-9373 or customerservice@crainscleveland.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com

——James, after the Cavs clinched the 2016 title

with Ursuline will offer seniors who return to the program the chance to participate in a clinical nursing experience and an opportunity to earn a scholarship to pursue a bachelor’s degree from Ursuline’s Breen School of Nursing and Health Professions.

Students in the ASPIRE Nurse Scholars Program see what it would be like to be a nurse in an operating room. | CLEVELAND CLINIC

REPORTERS

ADVERTISING

THE WEEK COMING NEXT SUMMER: Case Western Reserve University’s board selected the university’s next president. Former University of Minnesota president Eric Kaler will assume the role beginning July 1, 2021. In introducing Kaler, CWRU officials highlighted what they called “unprecedented” growth in the areas of fundraising, research and graduation rates at Minnesota. Kaler will succeed current interim president Scott Cowen, who took over the role when Barbara Snyder left earlier this year to lead the Association of American Universities.

Publisher Mike Schoenbrun (216) 771-5174 or mike.schoenbrun@crain.com Executive editor Elizabeth McIntyre (216) 771-5358 or emcintyre@crain.com Group publisher Mary Kramer (313) 446-0399 or mkramer@crain.com Managing editor Scott Suttell (216) 771-5227 or ssuttell@crain.com Assistant managing editor Sue Walton (330) 802-4615 or swalton@crain.com Creative director David Kordalski (216) 771-5169 or dkordalski@crain.com Web editor Damon Sims (216) 771-5279 or dasims@crain.com Assistant editor Kevin Kleps (216) 771-5256 or kkleps@crain.com Senior data editor Chuck Soder (216) 771-5374 or csoder@crain.com Editorial researcher William Lucey (216) 771-5243 or wlucey@crain.com Cartoonist Rich Williams

AND THE WINNER IS: A Northeast Ohio restaurant operator submitted the winning bid of $1 million at an Oct. 29 auction for the 100th Bomb Group Restaurant near Cleveland Hopkins International Airport. Naser Zayed, head of a family-led group, bested another bidder for the restaurant, which closed this summer. The Zayed group plans to continue to operate the restaurant and banquet center at 20920 Brookpark Road. The winning bidder has until Jan. 4 to close the transaction.

Crain’s Cleveland Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain President KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Editorial & Business Offices 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 (216) 522-1383 Volume 41, Number 40 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the first issue in January, July and September, the last issue in May and the fourth issue in November, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2020 by Crain Communications Inc. Periodicals postage paid at Cleveland, OH, and at additional mailing offices. Price per copy: $2.00. Postmaster: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. 1 (877) 824-9373. Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, MI, 48207-9911, or email to customerservice@crainscleveland.com, or call (877) 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax (313) 446-6777.

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WEBCAST SERIES

F R E E

TUESDAY

W E B C A S T

NOV. 10 10-11 A.M.

Residential Real Estate

OUTLOOK

Join us as we discuss the impact the COVID-19 crisis will have on residential real estate in Northeast Ohio. MODERATOR: Michelle Jarboe

Enterprise Reporter - Real Estate and Economic Development, Crain's Cleveland Business

PANELISTS: Joe Rath