Crain's Cleveland Business

LOOK BACK The mid-1990s ushered in NEO’s biotechnology sector to complement the already strong hospital and health care industry. PAGE 27

CRAINSCLEVELAND.COM I NOVEMBER 16, 2020

REAL ESTATE

Still looking for a fit

Richman Brothers Co. factory, a long-vacant Cleveland landmark, hits the market BY MICHELLE JARBOE

A mammoth piece of Cleveland history is up for grabs — if you’ve got $3.5 million handy. The former Richman Brothers Co. complex on East 55th Street hit the market at the end of October after a decade of unrealized redevelopment plans spanning everything from indoor fish farming to mixed-income housing. At 638,000 square feet, the onetime garment factory is a behemoth — one that has challenged potential developers, ensnared global owners and captured the imagination of planners during nearly three decades of vacancy. Built in 1915, the building served as the headquarters, manufacturing and distribution hub for a venerable men’s clothier. The Richman Brothers Co. put down roots in Cleveland in 1879 and expanded from wholesaling into retail and direct mail. The company — known for progressive policies including paid vacations, sick benefits and childbirth benefits — once employed more than 2,500 workers on East 55th, a short walk south of Superior Avenue. By 1945, Richman's original, E-shaped factory had grown to the size of 11 football fields. The 6-acre Richman Brothers site is surrounded by fencing, with padlocks to ward off trespassers and vandals. |

See RICHMAN on Page 25

MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

LEGAL AFFAIRS

Election controversies roil turbulent waters for law firms

Jones Day, Porter Wright face backlash over representing Trump, GOP in highly publicized, heated cases BY JEREMY NOBILE

Prominent Ohio law firms Jones Day and Porter Wright Morris & Arthur are dealing with dissension in their ranks for representing President Donald Trump or related GOP lawsuits, including those challenging components of an election that some Republicans have claimed without evidence could be rife with fraud. The backlash may have prompted Porter to abruptly withdraw from a

case in Pennsylvania alleging voting “irregularities” at boards of election across the state. The firm filed that case in Pennsylvania Middle District Court Monday, Nov. 9, but said in a Thursday, Nov. 12, filing it is pulling out. By the very nature of the profession, law firms will at times represent controversial people and topics. This may have polarizing effects among lawyers struggling to square their firm’s work with their own morals and convictions. It’s not uncommon

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Related story  How a Biden administration might affect the banking industry Page 6

for such situations to rankle attorneys, many of whom will more often than not swallow their personal beliefs, especially when it comes to a lucrative client. But today’s world is anything but common. According to reporting by The New York Times, unease with some cur-

rent or former lawyers at Jones Day and Porter has led to questions internally at those firms about the appropriateness of representing Trump or working on cases related to him and the GOP, particularly as it relates to recent lawsuits some critics view as undermining the democratic process. At least one lawyer quit in protest a few months back. An ex-Jones Day lawyer, who spoke with Crain’s on the condition of anonymity, said the fact Jones Day represents controversial clients is some-

thing all attorneys know going in and something partners literally buy into. The lawyer quit a few years ago, bristling at the firm’s efforts defending tobacco companies, battling the Affordable Care Act and supporting payday lenders, among many other things. The lawyer is somewhat incredulous to other attorneys raising a fuss now, especially those who are doing so while continuing to collect a paycheck from the firm. See JONES DAY on Page 22

FOCUS  Pandemic perseverance: How 10 small businesses are combating COVID-19 challenges. PAGES 12-18

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EDUCATION

NEO private colleges eye growing graduate programs Offerings can be an additional revenue stream as undergraduate enrollment drops BY AMY MORONA

While undergraduate enrollment dropped at colleges and universities this fall amid the coronavirus pandemic, recent data shows graduate programs are seeing a 2.9% increase nationwide, with private, nonprofit colleges reporting a 1.4% increase compared with fall 2019. One of those new students is Jeff Snowden. After moving from Maryland a few years ago, the U.S. Navy veteran said he didn’t have a strong professional network in Cleveland and often heard during his job search that he was competing against people who had advanced degrees. He got close to locking in a job advising other veterans at a local college earlier this year. The gig looked good, he said, until the pandemic began and the position’s funding dried up. “So I said, ‘OK, Roger that,’ ” said Snowden, who is 58. “And then I thought to myself, ‘All right, I haven’t got the job I want yet. I might as well continue my education.’ ” He’s now enrolled in Notre Dame College’s new MBA program. And he may not be alone in using this time to pivot to graduate programs. Enrollment at higher education institutions can be countercyclical during an economic downturn as people navigate a job loss or look to learn new skills in an attempt to boost wages.

Notre Dame is one of several small colleges in the area that launched a new graduate program this fall. | NOTRE DAME COLLEGE

Census data between 2000 and 2015 shows graduate school enrollment peaked in 2010 after the Great Recession, and education consulting company EAB forecast that a more educated workforce could lend itself to an upswing of people beginning graduate classes this year. In Northeast Ohio, several small private colleges are working to launch new graduate offerings even as the impact of the pandemic continues to level economic uncertainty. When it comes to these programs,

“AND THEN I THOUGHT TO MYSELF, ‘ALL RIGHT, I HAVEN’T GOT THE JOB I WANT YET. I MIGHT AS WELL CONTINUE MY EDUCATION.’ ” — Jeff Snowden, 58, on why he recently enrolled in Notre Dame College’s new MBA program

college consultant Susan Baldridge said, large research institutions typically eye profits and losses closely, making sure those programs cover

costs at a minimum. While that’s not always the case for smaller schools, she said administrators on those campuses who are looking for an additional revenue stream may find a natural fit by leveraging their current undergraduate programming. “They often go in the direction of thinking about whether there are some graduate program opportunities, usually at the master’s level, not the Ph.D. level,” she said. “Especially if those master’s programs can be professionally oriented where they

think they might be able to get enough net revenue to really contribute to the bottom line.” Not all master’s offerings are created equal when it comes to how much revenue they generate. But when just talking about revenue implications, programs that cost less to produce and draw in more payments from students can be the ones with the largest profit margins. For students, earning an advanced degree is an investment. And it’s getting pricier. A report from The Urban Institute think tank found the net price students actually paid between 1996 and 2016 rose at a far quicker rate for master’s degrees compared with bachelor’s degrees. Snowden said he’s using benefits from the GI Bill to fund the bulk of his education. For his classmates, the cost for Notre Dame’s MBA program is $500 per credit hour, or $15,000 for the program. Alumni receive a 10% discount, and the program does accept up to six transfer credits. Many graduate programs don’t offer additional institutional financial aid. That’s the case at Lake Erie College. Education graduate classes cost $499 per credit hour, MBA courses are $730 per credit hour, and a physician assistant program is $775 per credit hour. See GRADUATE on Page 21

Lake Erie is Ohio’s Most Precious Resource But the of fshore wind turbine project known as Icebreaker is threatening to alter Lake Erie forever.

Visually Disruptive

Environmentally Damaging

Financially Excessive

A potential 1,500 wind turbine field would take up 75 square miles of space

The lasting impact on f ish and migratory birds may forever change nature’s balance

This project includes excessive construction and longterm costs to consumers

We’re not against harnessing the power of wind energy, we’re just against wind turbines being built in our great lake.

1.) Learn more about Icebreaker at LakeErieFoundation.org/icebreaker

Get involved and see how you can help: 2.) Demand action by calling your state and federal representatives LakeErieFoundation.org

3.) Support our work by visiting LakeErieFoundation.org/donate

2 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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REAL ESTATE

Premier Development Partners puts local portfolio on block Real estate development firm’s growth plan includes ‘quietly’ attempting to sell NEO properties BY STAN BULLARD

Premier Development Partners, a real estate development and ownership firm, has quietly listed for sale its massive Northeast Ohio portfolio and made a high-profile staff addition in a quest to expand significantly beyond its regional roots. Spencer Pisczak, president and founding member of the Cleveland-based company, said its principals plan to use the capital from potential sales to pursue larger projects in the region and to buy land for real estate developments throughout the Midwest and the Southeast. “We’ve been doing this quietly for some time and have some sites lined up in St. Louis and Nashville,” Pisczak said. “We plan to realign our portfolio and pursue larger projects here and outside the region. Our typical development deals have been between $10 million and $20 million (in cost). In the future, we want to be in the $30 million to $50 million range per project.” The Premier Cleveland Industrial Portfolio, as it has been called, is being offered for sale by a Chicago-based CBRE team led by Michael Caprile, a vice chairman with a track record for massive industrial investment sales whom Pisczak knows from his days heading Indianapolis-based Duke Realty Corp.’s industrial unit here. The portfolio, which has been offered for sale confidentially, totals about 4 million square feet of industrial space in more than 20 buildings throughout the region. Pisczak declined to identify specific structures that Premier is marketing. However, the best known of that group is the Arhaus furniture chain’s headquarters and warehouse, a more than 700,000-square-foot property in Boston Heights that Premier developed in 2015. Premier’s portfolio ranges from other Class A warehouse properties to older, repurposed industrial buildings in suburbs including Brooklyn, Eastlake, Glenwillow, Hudson, Solon and Streetsboro. There is a prospective buyer inter-

ested in the portfolio, Pisczak said. Regardless of how that goes, the company is likely to close on sales of 2 million to 4 million square feet of properties, he said. The other move was that Premier’s staff has added Mark Hill, previously a vice president in business development in New York City for Gilbane Building Co., the global construction company with its main office in Providence, R.I. Hill retired recently from Gilbane, closing out a more than 30-year career that ended with five years in New York City as well as stops in Chicago, Columbus and others. “He will help fuel the growth,” Pisczak said. “We have been prodding him to join us. He has similar skills but a different type of rainmaking than we do.” Hill said he isn’t “ready to sit on the beach in retirement. Spencer (Pisczak) and Kevin (Callahan, a Premier principal) told me they might not be able to afford me. But I said, ‘You might. I’m retired.’ ” Hill started his career with Gilbane in Cleveland, served two long stints here, and considers Cleveland home. Hill brings big-league third-party building experience to the firm and a contact list to go with it. He’ll also support Premier’s established construction unit and may help bring in more third-party work. He noted his experience differs from that of Pisczak and Callahan in real estate, but there is a common thread: “I like to say I specialize in the art of the deal.” In seeking to spread its reach beyond Northeast Ohio, Premier follows a path trod by generations of Northeast Ohio real estate developers past and present. Terry Coyne, vice chairman at the Cleveland Newmark office, said he was slightly surprised Premier would pursue such a strategy because Pisczak and his partners know Northeast Ohio so well. However, given demand for industrial properties by investors and rising sale prices for leased properties, he said it’s “undoubtedly a good time to sell.” The big question posed by outsid-

Callahan

Pisczak

ers is how much out-of-town investors would prize the older buildings that Premier has repurposed for new users throughout the region in what could become a $600 million deal. For most of the nation today, industrial real estate means the massive warehouses that Amazon and other distributors are rushing to build across the country to meet growing online delivery needs and logistics changes by businesses. However, Cleveland and Akron remain manufacturing hotbeds. That produces manufacturing-focused projects that Premier and others have executed the past few years, as well as new, giant warehouses.

For Premier’s part, Callahan countered, “The advantage of a manufacturer moving to your building is that they will remain there longer. Distribution users tend to move around much more frequently.” Bob Garber, a principal at the Cushman & Wakefield Cresco real estate brokerage in Independence, said Premier is looking outside Northeast Ohio because of changes in this marketplace. “There used to be a local market in Northeast Ohio, with a group of local buyers who would build or buy buildings and hold them,” Garber said, but that’s over. “The values are escalating. There is more competition, so it’s harder to get land to get in front of national players for big deals. They may find other entry points elsewhere.” CBRE’s Caprile did not return calls from Crain’s about the portfolio. However, David Browning, the head of CBRE’s Cleveland and Akron offices, said Premier could not pick a better time to redeploy assets or a better team to expose it to prospects. Besides its growth, the industrial

market is benefiting from the disruption in the retail and office markets, Browning said, as it means there is a larger pool of prospective buyers. Although Premier has a sizable land portfolio, Pisczak said part of the attraction of the other markets is Northeast Ohio is land-shy compared with faster-growing markets such as Charlotte, N.C., and Nashville, Tenn., where greater population growth opens new areas for development. Premier’s staff numbers 25 and ownership is shared by multiple principals who together have built more than 100 buildings in a dozen business parks. It’s a big switch from the organization that grew after Pisczak exited Duke to remain in his hometown. Ideally, Pisczak said, Premier can “hitch its wagon” with another industrial real estate concern new to the area that lacks properties in the region and is looking to grow nationally. Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

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ENTREPRENEURSHIP

Election muddle and a business boost are buoying Bernie Moreno Entrepreneur’s family of companies is gaining momentum BY JAY MILLER

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It’s been a good autumn so far for entrepreneur Bernie Moreno. The muddle over the presidential election may boost one of his startups over the long term, while another of his young tech businesses has kicked off a promising product line. Moreno built and then sold off a collection of auto dealerships to focus on building businesses around blockchain, the digital technology that manages transactions securely. One of those businesses, Votem, is developing ways to better manage elections, accounting for his optimism after this past election “I think people saw what happened with the (recent presidential ) election and said, ‘Wow, there should be a better way to do this,’ ” he said. “I’ve gotten more messages about voting in the last two weeks than I had in the last two years.” Moreno doesn’t expect that business to have busy Novembers any time soon. Instead, Votem so far has focused on selling its services to labor and nonprofit organizations that run elections. But Moreno is always thinking big. The other business, CHAMPtitles, may have found a solid niche that it can use to build its business digitizing auto titles. While Moreno envisions state vehicle bureau operations eventually buying his platform to transfer their vehicle titles, CHAMPtitles has just signed several auto insurance companies that take possession of vehicles totaled in accidents as clients. “We turned our product in at the very end of August, early September with our first insurance clients,” said CHAMPtitles CEO Shane Bigelow. “We process titles for insurance carriers when they have a total loss transaction.” When a car is totaled, the owner gets a payout from the insurance company for the vehicle’s fair market value, and the insurance company takes possession of the vehicle. But before it can sell the vehicle for parts or to a junk yard, the insurance com-

Bernie Moreno sold his chain of auto dealerships to concentrate his efforts on Ownum LLC. | JAY MILLER

pany has to wait until the car title is processed. That, Bigelow said, can take insurance companies weeks. Josh Thompson, vice president of claims and risk engineering with State Auto Insurance Co. of Columbus, said in an email that the current process requires emailing or mailing the paperwork to the customer, who then completes the paperwork, including getting a power of attorney notarized. They then mail the paperwork to a salvage seller, who processes the title transfer with the proper state bureau of motor vehicles to allow the salvage to be sold. “CHAMP is processing title transfers for us in minutes or hours versus days and weeks,” he said. “From the insurance company perspective, paying our total loss claims faster makes the customer happier, helps us reduce costs associated with claims remaining open, and allows the salvage to sell faster, potentially increasing salvage returns.” Votem and CHAMPtitles are parts of Ownum LLC, a company Moreno created in 2018. Moreno had built his Collection Auto Group of dealerships to 30 vehicle brands in four states before sell-

ing all of them to concentrate on incubating blockchain-based startups under Ownum. Earlier this year, he bought back a 50% interest in a dealership in North Olmsted, Bentley Cleveland. Blockchain technology is good at verifying, securing and sharing data using cryptography. It was created to track the cryptocurrency bitcoin. Moreno’s businesses are designed to track paperwork transactions such as auto titles, votes and, in the case of another Ownum business, Vital Chain, birth and death certificates. In March, Ownum announced that Medici Ventures, the blockchain subsidiary of internet retailer Overstock. com, will acquire an undisclosed equity stake in Vital Chain and assist Vital Chain with product development. Moreno has been a strong believer that Northeast Ohio can, and should, become a hub for technology businesses. In a presentation in 2018, he spoke about his plans for a blockchain conference to attract techies from across the country and his hope that Cleveland could be a center of this emerging blockchain technology. “We want to make certain that when we do it right here in Cleveland, that we integrate technology into the fabric of the community,” he said. “It’s a fullblown community effort of the willing.” That presentation came four months before Moreno spearheaded the first Blockland Solutions Conference at the Huntington Convention Center of Cleveland. It drew 1,700 people. The second conference, in December 2019, drew 1,500 people. Because of the COVID-19 pandemic, the 2020 conference has been canceled. “The whole point of Blockland is to bring Cleveland to the greater tech community — all over the country, the world — to bring them here,” Moreno said in a telephone interview on Nov. 10. “And you can’t do that now. So I’ll do it next year. I think next year, life we’ll be back to normal.” Jay Miller: jmiller@crain.com, (216) 771-5362, @millerjh

“Any way you slice it, Beachwood is the best location.”

Mayor Martin S. Horwitz •Mayor@BeachwoodOhio.com •216.292.1901

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4 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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FINANCE

Banks brace for adjustments by a Biden-led administration Divided legislature ‘could act as a firewall’ that halts big changes BY JEREMY NOBILE

Coupled with what is looking like a still-politically-divided legislature, a moderate Joe Biden administration is unlikely to make many sweeping, jarring changes impacting the financial services industry, at least not early on. Change is always a worry for banks, especially when trading a Republican administration with a Democratic one. While Biden may represent more of the moderate, political status quo, he’s connected to a party of progressives that tend to seek in-

dustry regulation that favors consumer rights over bank margins. To be sure, the next four years will bring a different environment from what banks have grown used to under President Donald Trump, where a preference for deregulation helped boost bank profitability to new levels in recent years before the global health crisis shocked the economy. The question on minds at banks and credit unions today is what will these changes look like? At this point, much of that remains to be seen and is largely unknown. But here are some key ques-

tions financial industry stakeholders are thinking about heading into 2021.

Who will lead regulatory agencies? Biden has said some of his top priorities as president will be addressing coronavirus, the economy, climate change and matters of racial and social equity. While Democrats tend to prefer more regulation over less, the financial services industry isn’t an immediate target of the incoming administration’s focus.

Meanwhile, a blue wave didn’t wash over Congress as predicted, so a scenario where Dems could push through policies unchecked has been avoided. “There’s a divided government with the GOP winning the Senate, which could act as a firewall to prevent anything too far out there in terms of harmful legislation for banks,” said James Thurston, spokesman for the Ohio Bankers League trade group. The status quo tends to benefit the banking sector that prefers predictability to change. But in terms of a general regulatory outlook, a major unknown is who will lead key agencies that could make an impact.

The Cleveland Heritage Medal Salutes Its 2020 Honorees

This could potentially bring some dramatic changes depending on who is appointed to lead the Treasury, Office of the Comptroller of the Currency and Consumer Finance Protection Bureau, for example. Bankers seem to bristle at the notion of Barack Obama appointee Janet Yellen leading the Treasury, while some CFPB candidates have ties to Sen. Elizabeth Warren, who championed its inception. The CFPB was largely dormant through Trump’s administration. A more active CFPB is something banks worry about. But Biden’s appointments would need to be confirmed by a GOP-led Senate, if Republicans win at least one of two runoff elections in Georgia, meaning a more moderate leader will be installed compared with anyone too radical or progressive from a conservative banker’s point of view. Any new change in regulatory regimes causes an amount of “angst,” said Emily Leite, head of advocacy for the Ohio Credit Union League trade group, which is closely following who might head the National Credit Union Administration. “What might new leadership bring to the table? Could it result in more expenses? A different way of doing business? Will there be some things we can’t do in the future? What are the impacts and opportunities, and what does it mean for us? Any new regulation comes with action and expense and time for credit unions,” Leite said.

What’s the outlook for COVID-19 and stimulus?

Jeanette Grasselli Brown

Bracy E. Lewis

A. Malachi Mixon III

A special Cleveland Heritage Medal tribute video celebrating these recipients will debut Tuesday, November 17. Go to heritagemedal.com for more details. Thank you to the following individuals and organizations for their role in honoring the 2020 Cleveland Heritage Medal Recipients Joanie and Thomas W. Adler* Sally and Robert D. Gries* Carole F. Hoover* Richard W. Pogue* Barbara S. Robinson* *Past Cleveland Heritage Medal Recipients

Case Western Reserve University Cleveland Clinic Cleveland Foundation Cleveland Institute of Music Cleveland Restoration Society Cleveland State University

Eliza Bryant Village Holden Forest & Gardens KeyBank Martha Holden Jennings Foundation MCM Capital Partners The MetroHealth System

The NRP Group PNC Enid Rosenberg RPM Steris

2020 Cleveland Heritage Medal Committee Chairs:

Akram Boutros, M.D., FACHE President and CEO The MetroHealth System

Alex Johnson, Ph.D. President Cuyahoga Community College

The Honorable Frank G. Jackson Mayor City of Cleveland

While bankers are closely watching regulatory agencies, all financial institutions are lobbying for additional rounds of government stimulus, such as more Paycheck Protection Program loans or individual stimulus checks. These programs are credited with helping banks collect deposits amid the COVID-19 economic downturn and protecting credit quality, as fewer loans have soured than what would typically be expected amid a recession. However, bank executives such as Bill Demchak of PNC Financial Services Group note the impact of this year’s stimulus programs has waned. Many businesses and consumer remain in tenuous financial positions. While credit quality remains generally good today, there are some institutions waiting for the shoe to drop, said Bob Palmer, president and CEO of the Community Bankers Association of Ohio trade group. Without more meaningful stimulus, defaults could pile up next year. This leaves banks in a tough position, Palmer said. Capital levels are elevated with increased deposits, but with no sense of how sticky those funds are, banks are reluctant to use them. This lowers the ceiling on profitability. Bank earnings, and their stock values, would get a boost from additional rounds of government stimulus that would further protect asset quality and possibly allow companies to release capital held in buckets like loan loss reserves. This all points to the X-factor of how coronavirus is handled in the coming year, as bank health is intrinsically tied to the health of the economy at large. The availability of an effective vaccine to bring the health crisis under control will be critical to the banking outlook. See BIDEN on Page 21

6 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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MANUFACTURING

LaunchHouse co-founder aims to hit sweet spot Todd Goldstein brings production of Whoa Dough’s reformulated cookie dough bar to Northeast Ohio BY RACHEL ABBEY MCCAFFERTY

Todd Goldstein has worked with entrepreneurs and startups for years as the co-founder and CEO of coworking organization LaunchHouse. He’s helped launch startups himself, and he’s served as an owner or investor in companies. But Whoa Dough is the first time he’s really taken a product from idea to store shelves. Whoa Dough is an edible cookie dough bar that Goldstein first introduced to the market in late summer 2019. The product comes in a range of flavors, from sugar cookie to peanut butter chocolate chip. The bars can be eaten as is, or they can be baked or chilled. And now, the company, which is based at LaunchHouse in Highland Heights, is in the midst of a relaunch. Goldstein was diagnosed with gluten intolerance in 2011. His sons, who were born in 2015 and 2017, also have been diagnosed with gluten intolerance. That all set Goldstein on the path toward Whoa Dough. He started looking for a treat that could fit in the gluten-free market and noticed that edible cookie dough was starting to take off as a trend. “It’s something that everyone loves,” he said. “It’s nostalgic.” He decided to pursue a cookie dough bar that could be eaten on the go. Ultimately, it took 19 iterations to get to the company’s first product for public release. That took place in 2019, with grocers such as Heinen’s and Miles Farmers Market agreeing to carry the bars. Goldstein quickly started to face some of the same challenges he’s seen other entrepreneurs face. “It’s been really, I want to say, a roller coaster ever since,” he said. The big problem was that the product he created wasn’t really what he wanted to be selling. Goldstein said he had been aiming for a “healthy indulgence,” not a protein bar. But what he was selling was much closer to a protein bar than cookie dough. Early on, Goldstein had worked to tweak the formula, changing the ingredients slightly to avoid a sour aftertaste. “But, ultimately, it didn’t matter what one ingredient I switched, we had completely missed the mark,” Goldstein said. And customers weren’t wowed with the taste. Goldstein said the company’s Amazon reviews should have led him to reformulate almost immediately. Goldstein went back to the drawing board, working with a food scientist to completely redevelop the bars. The result is a new formula that goes back to Goldstein’s “healthy indulgence” idea that’s in the process of hitting store shelves. In November, local shoppers will be able to find the new bars at Heinen’s, Miles Market and Dave’s Markets locations. The new bars also will be available on Amazon in mid-November. Whole Foods shoppers will still see the old formula through at least the end of 2020. One of Whoa Dough’s partners throughout this process has been Cleveland-based brand design agency Twist. One of Twist’s areas of focus is “innovative, somewhat-natural” food or

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Founder Todd Goldstein was in Youngstown to see the first manufacturing run of Whoa Dough’s new formula. | WHOA DOUGH LLC

home goods products, said CEO and chief creative officer Michael Ozan. Whoa Dough was a good fit. Through the product reformulation, Whoa Dough’s logo has stayed the same, but the packaging and messaging has been updated to put a stronger focus on the new ingredients. Ozan said he views everything up to the relaunch an “experiment.” “This formula will be the real product,” he said. The new formula aims to taste more like real cookie dough instead of a protein bar. It’s lower calorie than the previous iteration and less protein-focused. And it’s been reformulated to be vegan in addition to being gluten free. It also aims to be allergy friendly, though the peanut butter flavors obviously include that common allergen. Part of the relaunch also included moving production to a new manufacturer in Youngstown. Manufacturing had started at a company in California, which meant Goldstein couldn’t always get to and from the plant for product testing. And the costs at the former manufacturer didn’t leave much room for profit. The new manufacturer’s prices were better, and setting up production close by meant Goldstein could get more directly involved. And with his years of experience at LaunchHouse, getting to give work to a local company is something of a “dream come true,” Goldstein said. “To me, starting LaunchHouse was a way to bring people together to allow them to start businesses,” he said. “But I think I had always imagined that, whether it was through investing or creating my own businesses, I would be able to have a larger impact here.” Admittedly, the company is still just getting its start. Currently, there are four employees, in addition to Goldstein. He hopes that reaches 20 in the next five years. And last year, Whoa Dough saw gross sales of about $45,000, Goldstein said. So far this year, sales are a bit above $50,000. He’s transparent about those figures, because he wants other entrepreneurs to understand the process. “You don’t go to a million dollars overnight,” he said.

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Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com NOVEMBER 16, 2020 | CRAIN’S CLEVELAND BUSINESS | 7

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SPORTS BUSINESS

With industry on rebound, some golf course owners look to cash out Recent sale of Rolling Acres could be first of a few in months ahead “IT’S SUCCESSION PLANNING. THEIR KIDS ARE GONE AND THESE DUDES ARE 75, 80 YEARS OLD RUNNING THESE GOLF COURSES, GOING, ‘I DON’T HAVE ANOTHER FIGHT IN ME AFTER THIS.’ ”

BY KEVIN KLEPS

Dick Kiko Jr. estimates that his family’s auction and real estate companies have sold at least a dozen current or former golf courses in the last couple of decades. “It’s succession planning,” said Kiko, the CEO of KIKO Auctioneers, a fourth-generation Canton company that says it hosts more than 1,100 auctions per year. “Their kids are gone and these dudes are 75, 80 years old running these golf courses, going, ‘I don’t have another fight in me after this.’ ” In late September, a KIKO auction resulted in a 146-acre property that includes Rolling Acres Golf Club in Nova selling to multiple buyers for a total of more than $1.3 million. The land was divided into nine parcels, and an unidentified buyer purchased three parcels that includes the golf course, a bar and a three-bedroom home. The seller, Mark Taylor, operates Rolling Acres Golf Club LLC, which, according to Ashland County land records, purchased the property at 63 State Route 511 for $1.25 million in 2004. Kiko expects the deals to close in late November or early December. The plan for now, he said, is to con-

— Dick Kiko Jr., CEO of KIKO Auctioneers

vert Rolling Acres into a nine-hole golf course with a neighboring home development. The 75-year-old, family-owned company he runs has three more golf-related auctions on tap in the next month. First up was a Nov. 12 auction of more than 30 acres in Columbiana. The property includes Whispering Pines, a nine-hole golf course that closed in 2016 after more than 50 years in business. On Nov. 25, KIKO will be selling items from the Barberton Brookside Country Club in Norton. The golf course is slated to be the future site of a $98.9 million, 490-home development. Then on Dec. 5, KIKO will travel to Tuscarawas County to auction off a 280-acre, eight-parcel property in New Philadelphia. There, the auction house will sell Oak Shadows, a scenic

golf course that has been in operation since 1995. Sure, it’s been a really good year for the Northeast Ohio golf industry, which has seen increases in rounds played and revenues in the 20% range at many facilities. But, Kiko points out, the industry was down for quite a while, as evidenced by the dozens of courses that have closed in the area in the last few years. “They made more money,” he said of golf course operators in 2020. “But they still don’t make a lot of money. I don’t care what you say.” Kiko said he knows of two operators who plan to sell their courses but first want to “make as much money as they can” during a productive 2020, then put their courses on the market in the spring. “Because they’re tired,” Kiko said. “They’re tired of the run.”

‘Time to move on’ Renny Wolfson doesn’t sound like a beaten-down golf course owner. Rather, the 71-year-old and Mark Tiefel, his 68-year-old business part-

ner, say it’s time to move on from their 12-season tenure as the owners of The Historic Tanglewood Club in Chagrin Falls. Wolfson and Tiefel have had the 130-acre golf course on the market

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for m imp posh an e ly bo Ta

With The Historic Tanglewood Club restored to its former glory, the next step is finding a buyer. | CONTRIBUTED PHOTOS

back up in August, Wolfson said, and its golf revenues have soared 30% during a year in which more people have worked

Tanglewood owners Mark Tiefel, left, and Renny Wolfson have put the golf club up for sale, but there’s no rush, says Wolfson.

that relationship with them.” Several of Tanglewood’s local competitors — a group that includes Berkshire Hills Golf Course in Chesterland, Wicked Woods Golf Course in Newbury Township, Auburn Springs Country Club in Chagrin Falls and Aurora Golf Club — have closed during the ownership of Wolfson and Tiefel. “There’s certainly been a culling over the last few years,” Wolfson said. Now, golf is on the rebound. Courses have posted gains in rounds played in consecutive years, and op-

erators have called 2020 the best year for the industry since the Tiger Woods-inspired boom in the early to mid-2000s. Factor in a real estate industry that’s been boosted by low interest rates and demand that’s exceeded supply in many locations, and Kiko believes now could be the time for some operators to put their courses on the market. “It’s shifting from golf courses are dead to, ‘Hey, there are some that are left that are worth keeping alive,’ ” he said. Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

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from home and have looked to golf as a safe form of recreation. Tanglewood general manager Tom Scheetz said the club’s golf revenues are at their highest point in a decade, helped in part by “being the only game in town” during the shutdown. A few days before the first weekend in November, Tanglewood already had 164 golfers lined up to play on a Saturday in which the weather was expected to top 60 degrees. “It’s just been amazing,” Wolfson said. Then why sell? When Wolfson and Tiefel purchased Tanglewood, it was two years removed from going into foreclosure. The course had deteriorated, and the owners have put almost $1 million into renovations that included an extensive makeover of the clubhouse. “Once you hit a bad spot like that, it takes a while to get the public to re-embrace you,” Wolfson said. Restoring the facilities, along with what the owner describes as marketing methods that are “a little more sophisticated” than a typical golf course, have gotten Tanglewood back on track. The next step is finding a buyer, though Wolfson stresses there is no rush. Tiefel lives in the Tanglewood Lake development that surrounds the course, and the owners want to be certain that their replacement is a quality fit. “It’s time to move on,” Wolfson said. “We have a great partnership with the homeowners, and we want to take some time so that we can make sure that our successor also has

NOVEMBER 16, 2020 | CRAIN’S CLEVELAND BUSINESS | 9

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FROM THE EDITOR

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

COVID’s worrying impact on working women

EDITORIAL

Same as it ever was T

hey’re back. Maybe. The “they” here is shutdowns of part of Ohio’s economy — bars, restaurants and fitness centers — that could come soon if the state can’t get its frightening spike of new coronavirus cases under control. Gov. Mike DeWine said in an address last week that he’ll make a decision on closures by this Thursday, Nov. 19, based on whether “the current trend continues and cases keep increasing.” DeWine said he was “well aware of the burden this will place on employees and owners, but these are places where it is difficult or impossible to maintain mask-wearing, which we know now is the chief way of slowing this virus.” Also part of the governor’s message: a strengthened statewide mask order, featuring a new compliance unit with agents led by the Ohio Bureau of Workers’ Compensation who will inspect venues and have the authority to close stores for up to 24 hours after a second violation, and new restrictions on social activities such as banquets, wedding receptions and post-funeral gatherings. Sound harsh? It is, but it’s not as harsh as the third SOUND HARSH? IT IS, coronavirus wave now lapBUT IT’S NOT AS HARSH ping over the state. Ohio on Tuesday, Nov. 10, posted its AS THE THIRD worst day of new cases, at CORONAVIRUS WAVE 6,508. A day later, new cases were down to 5,874 — but NOW LAPPING OVER that was the second-worst THE STATE. day on record. The prospect of another shutdown is daunting for bar and restaurant owners. Most are struggling financially and, even if they stay open, are looking at a tough winter, when outdoor dining options are limited. Although there is evidence that restaurants, bars and gyms play a disproportionate role in the spread of COVID-19 infections, so do churches and hotels — two categories not mentioned in DeWine’s address. If we had our way, there would be another federal stimulus bill that would give special attention to bars, restaurants, arts organizations and others that are particularly threatened by

the inability to serve large groups of people indoors. Given the state of things in Washington, though, that’s exceedingly unlikely. Restrictions, if they return, will be economically and socially painful. But the COVID numbers justify them. Ohio’s not alone here. On Wednesday, new cases nationwide surpassed 140,000. That day, there were 65,368 people hospitalized across the country with COVID-19, and 17 states set hospitalization records, straining health care systems and draining health care workers. DeWine said he understood that Ohioans were “tired and weary” after months of pandemic living. But you know what’s really exhausting? That so many people still are not able to grasp the implications of what it means to have 140,000 new cases nationwide of a virus that grows exponentially. We’re at the most dangerous point yet with the virus, which is ironic, because last week brought hope, via Pfizer, that a COVID-19 vaccine is on the way soon. That makes it particularly important to get these numbers down, fast, to minimize damage this winter. Thanksgiving is coming up, and Christmas is around the corner, but holiday plans must be limited. Keep your bubble tight, wish your extended families well and hope to have exuberant celebrations in 2021. Everyone needs to commit completely to wearing masks, social distancing and minimizing exposure risks. Companies that brought back staffs should encourage them to work from home again if possible. DeWine tried to reclaim some of the confidence he earned in the pandemic’s early days but then lost as he lost his nerve. He didn’t help his case with the recent appointment of Stephanie McCloud to lead the Ohio Department of Health. That position had been filled on an interim basis since Dr. Amy Acton stepped down in June after being harassed personally and ridiculed as an alarmist for suggesting that daily caseloads could reach into the 6,000s. McCloud has done a fine job running the Ohio Bureau of Workers’ Compensation, but she has no significant background in public health. We hope her administrative skills lead her to prioritize the roles of health care experts in this critical time.

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

COVID cases are once again spiking. Many schools are switching back to remote learning. Businesses that welcomed workers back to the office are recommending a return to work from home. I fear it’s going to be a long winter. And it may be even longer for women in the workforce, who disproportionately bear the brunt of this pandemic. The effects on Elizabeth corporate America may be profound. McINTYRE Among the many casualties the coronavirus can claim are the gains women have made in the workforce. COVID has forced droves of working women to reduce their hours or quit their jobs as homeschooling and child care demands have increased in recent months. In some cases, it has led to burnout and mental health issues. The National Women’s Law Center recently reported that nearly 2.2 million women have left the labor force between February and October. And the management consulting firm McKinsey says one in four women are considering downscaling their careers or leaving the workforce because of the pandemic. Crain’s recently updated a re- COVID HAS FORCED port we did back in 2015 on the composition of Northeast Ohio DROVES OF WORKING corporate boards of directors. WOMEN TO REDUCE The number of women on boards of area public compa- THEIR HOURS OR nies has risen in the last six QUIT THEIR JOBS AS years, but there’s still plenty of progress to be made. Our re- HOMESCHOOLING porting showed that women AND CHILD CARE continue to be underrepresentDEMANDS HAVE ed in corporate board rooms. Our reporting mirrored INCREASED IN what McKinsey has found in studying women in the work- RECENT MONTHS. place since 2015. In six years, women in senior vice president roles grew from 23% to 28%. In the C-suite, the increase was from 17% to 21%. These certainly are not huge increases. Still, it’s forward progress for professional women. What happens, though, when fewer women are in the labor pipeline because of the pandemic? They lose out on opportunities for promotions and wage growth. And if they ever decide to return to the labor force, it would be almost impossible to return to the same career path. Those gains we saw since 2015? Don’t expect them to be sustained. Over the past month, the Crain’s newsroom has been working hard to prepare our Power 150 list for the Book of Lists, which will publish on Dec. 28. For those unfamiliar with this list, it’s a snapshot of those leading some of Northeast Ohio’s most influential organizations. It’s a listing of people who are in a position to move our region forward, from CEOs and politicians to philanthropists and entrepreneurs. Crain’s has produced the list periodically over the years, last publishing one in 2014. And this year’s list has me encouraged. The amount of female and minority representation in the 2020 list is double the number from seven years ago. Sadly, I must admit that no matter what lens we use to view the list, women and people of color are still woefully underrepresented in power positions in Northeast Ohio. This year’s list shows progress. Normally, I’d see that as a good sign. But this pandemic has me fearing what I might see in the list in 2025 or 2030. I’m worried that diversity in our region’s leadership may be among the casualties of the pandemic.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

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

10 | CRAIN’S CLEVELAND BUSINESS | November 16, 2020

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OPINION

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PERSONAL VIEW

How business leaders are reacting to the economic rebound BY ELAD GRANOT

From government-enforced shutdowns and quarantines to the worst economic recession since 1920, there is no debate that 2020 has been a trying year for the grand majority of organizations worldwide. Once state and local governments lifted strict COVID-19 regulations, the economy began its recovery. Although the pandemic caused sudden, unparalleled economic challenges, many businesses value the resulting forced learning experiences. Some organizations strategically used the downtime provided by the pandemic to make decisive changes to their business’ operations and processes. Now is not the time to pretend as if a historical crisis never occurred. There is no “going back to normal,” but rather a return to the old abnormal. If you have not begun restructuring your business, what are you waiting for?

Learn from your mistakes The first step businesses can take to renew their organization is to learn from their mistakes. What would you do differently from your organization’s response to the unforeseen crisis? Or if you knew this was going to occur, how would you have prepared ahead of time? Identify what did not work for your business and staff, and how you were unprepared. The struggles that occurred prepare business leaders to become stronger on the other side. Business leaders should not be looking to recover their organization to how it was before the pandemic struck. Reset priorities, adjust business and operation plans, and redirect resources to the departments that need them most.

Cut costs Although the economy is picking up, some parts of it

Granot is dean of the College of Business and Economics at Ashland University.

are still not at pre-COVID levels. Reviewing your business’ costs will allow you to prioritize your business needs. Consider your organization’s work-from-home situation or the brand presence of your products or services. Many people’s priorities have shifted throughout the year, so it is important to also modify your sales strategy. Review the marketing of core products on digital platforms and remove redundant services.

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11/3/20 2:45 PM

Invest in yourself The economy is predicted to take many twists and turns until it exceeds pre-COVID levels, making this the time to invest in yourself. The time for business improvements is now, and it begins with you and your ambition. Take a class, learn a new skill or deepen your portfolio. In order to become a successful business leader, you must think and perform like one.

LETTER TO THE EDITOR

Time to slow down apartment development Might we be overbuilding apartments in and ple working from home and perhaps liking the idea of around downtown Cleveland? The Nov. 9 issue of downtown apartment living in the center city, low inCrain’s Cleveland Business, “Determination builds”, terest rates, opportunity zones, possible tax credits tells the story that developers are still looking to build and abatements, and construction companies vying more ground-up apartments within the core of our to keep their employees working. I think the developers would be better off with marcity. I congratulate their enthusiasm, but I am just ket-rate condominiums instead of wondering if this is the right time to We then would get a be adding to the inventory? I THINK THE DEVELOPERS apartments. commitment from buyers that I have been working downtown would lead to a more stable downreal estate for over 30 years and WOULD BE BETTER OFF town. If the developers must build have seen tremendous developWITH MARKET-RATE apartments, scale down their viment. The Downtown Cleveland Alliance says there are over 20,000 CONDOMINIUMS INSTEAD sion, and start with a smaller project and number of units with possiresidents living downtown and ble expansion to build additional 105,000 office workers — but can OF APARTMENTS. WE units in the future. that hold up? THEN WOULD GET A I am not saying don’t build. I am We have the pandemic causing a saying be cautious and be patient. glut of unused office space and, be- COMMITMENT FROM We do not need or want any more cause of the pandemic, more peo- BUYERS THAT WOULD foreclosures. We should be proud ple are buying near downtown and of what Cleveland has accomthe suburbs: i.e., Lakewood, Ohio LEAD TO A MORE STABLE plished over the last 10 years with City, Gordon Square, Cleveland DOWNTOWN. the resurgence of our downtown Heights and more. They want to get away from the density of city buildings — thus, these housing market. It just seems that we are putting a lot of new apartareas have become a “sellers’ market”. Then to continue: the new school board tax increase, more vacan- ments on the market, and I am not seeing the decies in existing apartment properties offering big in- mand. I could be wrong, but I have seen it in the office centives for new tenants, a possible recession, and a market and am now seeing it in the retail market. population that is dwindling in our metropolitan Let’s be smart, Cleveland! We will get there … just not Cleveland area, which all add up to less demand for so fast! Take it slow. Francis M. (Sandy) Coakley apartments. Principal, Coakley Real Estate Company LLC I see what the developers are thinking. More peo-

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SMALL BUSINESS

PANDEMIC PERSEVERANCE

Still fighting the good fight

In the spring and early summer, as the COVID-19 pandemic hit and stunned the world, Crain’s checked in with some local small businesses to see how they were battling through amid shutdowns and the resulting economic downturn. We called the series Pandemic Perseverance. Some companies, as expected, faced massive challenges, yet others found an unexpected upswing in business or looked at innovative ways to pivot their models. As the pandemic drags on, we decided to check in on the featured businesses to see if they are still, indeed, persevering.

SORBETTO/ISTOCK

Crain’s revisits 10 small businesses to see how they’re faring against COVID-19 THE TEN  CarloMoni Hair Care Products: New product offers hope. PAGE 14

 Great Lakes Futsal: Still in the game. PAGE 16

 Gervasi Vineyard: Winery invests in pivoting. PAGE 14

 Phoenix Enterprise Solutions: Having a busy year. PAGE 17

 The Chef’s Garden: You can’t shut down a farm. PAGE 15

 Sit Means Sit Dog Training: Bouncing back. PAGE 17

 Die-Cut Products Co.: A switch to face shields. PAGE 15

 Specialty Fitness Equipment: Staying in financial shape. PAGE 18

 Rite Aid Cleveland Marathon: Hoping to run in 2021. PAGE 16

 Beachland Ballroom & Tavern: Managing to play on. PAGE 18

12 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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Cautiously optimistic, winery invests in pivoting

S

 Last check-in: Monica Slayton in June was starting to welcome customers back to her salon, Monicarlos Hair Creations in Akron. And she was working on new products to add to her hair care line, CarloMoni Hair Care Products.

 Last check-in: Canton’s Gervasi Vineyard saw 90% of its revenue vaporize the day after closing amid the COVID-19 lockdown in midMarch and laid off 300 employees soon after. The shock to the business came during its 10year anniversary and one year after a $10 million expansion was completed.

But business is moving forward on the hair care product side. Slayton recently launched a new hair growth oil through CarloMoni. This was a product she had wanted to launch for some time, but she was concerned the pandemic — and the way it slowed supply chains — would hold up its release. She’s grateful it did not, and that she’s been able to enjoy some good news amid the year’s struggles. — Rachel Abbey McCafferty

“THE MAJORITY OF PEOPLE I KNOW HAVE INDEPENDENT CONTRACTORS IN THEIR SALONS. THEY DO NOT HAVE W2 EMPLOYEES. SO WHERE DOES THAT LEAVE US?” — Monica Slayton, on being left out of large grant opportunities because she uses independent contractors in her salon

 To Prod B and said stru Th Prod CONTRIBUTED

 Today: Scott Swaldo, co-owner of GV Destinations, the parent company of Gervasi and sister restaurant The Twisted Olive, is leery of what the future holds, yet much more upbeat than in the spring. With some financial reserves to work with, Gervasi was never really at much risk of closing. Yet pivoting to a pandemic-era business model has been a costly endeavor of hundreds of thousands of dollars in what will still be a down year. Some of the pricier investments include industrial outdoor heaters — which required running new underground gas lines — and an expansion of The Piazza outdoor dining space that’s getting underway. New commercial filtration systems have been installed in the restaurant and events center, too. “Our expenses have never been higher,” Swaldo said. “But it’s the right thing to do. Things are going to be OK, but we’re investing to make it happen.” Working to Gervasi’s benefit is its 55-acre estate. The outdoor space helped draw customers. Weddings continued to be held and booked over the summer once permitted by the state, and the hotel stayed active with guests staycationing or road-tripping from nearby states. With reduced indoor dining capacity, Gervasi will feel a bit more of a squeeze this winter.

CONTRIBUTED

 Today: It’s still slow-going at the salon. Slayton said not all of her clients have returned, and those who have tend to visit less frequently. To maintain appropriate social distancing, she can’t serve as many clients at once as she normally would. It’s been a “challenge,” she said. And Slayton has been left out of most of the large grant opportunities because she uses independent contractors instead of full-time employees. And that means she doesn’t meet the W2 requirements many of the grant opportunities have required. That frustrates her. She’s still a small business owner paying taxes, she said, and barbers and stylists play a big role in the Black community. “The majority of people — and I know a lot of barbers and stylists — the majority of people I know have independent contractors in their salons. They do not have W2 employees. So where does that leave us?” she said.

 La land spac was by m

“OUR EXPENSES HAVE NEVER BEEN HIGHER. BUT IT’S THE RIGHT THING TO DO. THINGS ARE GOING TO BE OK, BUT WE’RE INVESTING TO MAKE IT HAPPEN.” — Scott Swaldo, co-owner of GV Destinations, the parent company of Gervasi, on what the future holds

But Swaldo is feeling pretty good about prospects in the spring and summer, barring a turn for the worse with the pandemic. “We obviously don’t know what tomorrow holds or what the winter holds,” Swaldo said. “But we are hopeful that people continue to come.” — Jeremy Nobile

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FOCUS | SMALL BUSINESS | PANDEMIC PERSEVERANCE DIE-CUT PRODUCTS CO.

Switch to face shields helps keep fabricator busy ``Last check-in: Die-Cut Products Co. in Cleveland was seeing orders decline from its aerospace customers, but president Ari Jay Comet was hoping the company could help fill the gap by making face shields.

“[MAKING FACE SHIELDS] DEFINITELY HELPED BOLSTER US FROM THEN UNTIL NOW.” ——Ari Jay Comet, Die-Cut Products Co. president

CONTRIBUTED

``Today: Not much has changed for Die-Cut Products since the spring, Comet said. Business has been in decline in recent months, and gross sales are down by about 25% to 30%, he said. The aerospace market in particular is still struggling as fewer people travel and fly. The face shield production kept Die-Cut Products busy in the spring and early summer,

Comet said. In total, the metal and nonmetal fabricator made close to 1 million face shields. “That definitely helped bolster us from then until now,” he said. Die-Cut Products began a push to make clear face shields to combat the COVID-19 crisis. | CONTRIBUTED

THE CHEF’S GARDEN

You can’t shut down a farm `Last ` check-in: When the pandemic first hit, it cost The Chef’s Garden, a 300-acre vegetable farm in Huron, 85% of its business. The farm, a so-called farm-to-table supplier, provided produce to highend restaurants across the country. Fortunately, the business had just begun selling 12-pound boxes of herbs and specialty vegetables directly to consumers around the country at $89 a box. After a rough March and April, the busi`Today: ` ness of selling to restaurants had revived somewhat but fell off recently as COVID-19 cases began to rise again and restaurants in parts of the country curtailed dining-in, said co-owner and CEO Bob Jones Jr. The home delivery side grew quickly in March and April then fell off in the summer months when the warm weather attract-

ed shoppers to outdoor farmers markets. Now, that business is starting to return. “We got past Labor Day, and it started going back up again. And November and December look to be strong,” said Jones, who runs the company with his father, Bob Sr.,pop0poppopop and brother Lee. “A lot of folks are actually buying boxes for themselves and gifting a box.” Chef’s Garden has developed a link to Second Harvest of North Central Ohio to distribute the gifted boxes. Overall, Jones said, business is now at about 40% of its pre-pandemic level. The farm was also an early participant in the federal Farmers to Families Food Box program, an emergency food assistance program an- Co-owner Lee Jones is shown at The Chef’s Garden’s T:10.25" nounced by the U.S. Department of Agriculture farm in Huron. | CONTRIBUTED

Once that business slowed, Die-Cut Products sought and received a PPP loan to help close the gap. That funding has now been spent, and Comet said he expects to apply for the forgiveness program. Comet said the company has started to “feel the effects” of the pandemic, though he hasn’t had to lay anyone off or cut anyone’s hours. He is expecting the fourth quarter to be slow, particularly in a presidential election year. He’s hoping the start of 2021 will be the beginning of a rebound, but said he’s no more than “cautiously optimistic.” — Rachel Abbey McCafferty

“WE GOT PAST LABOR DAY, AND IT STARTED GOING BACK UP AGAIN. AND NOVEMBER AND DECEMBER LOOK TO BE STRONG.” ——Bob Jones Jr., co-owner and CEO of The Chef’s Garden

that has been supplying dairy, meat and produce to food banks across the country. However, Jones said it lost its contracts when the federal government required suppliers to include all food varieties — meat, dairy and produce — in each box. Still, he’s optimistic, though the business has had to furlough employees. “We’re going to be here; we’re going to make it,” Jones said. “We’re very, very excited about Thanksgiving and Christmas for the holiday season — this is a great year not to send a box of chocolates.” — Jay Miller

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CONTRIBUTED

Because our employees live in and deeply understand the communities they serve, they’re empowered to make decisions at the local level–finding unique solutions for the people they know best.  Last check-in: The marathon, hoping to again draw 15,000 people for its annual weekend of events, went virtual for the first time. During a five-week period last spring, runners could log and submit their miles, at the time and location of their choice.  Today: The virtual race drew about 3,000 participants. One highlight: A teacher devised a marathon “WE’RE route that went by all of her students’ homes at a time when schools LOOKING FOR were closed because of the pan- SOMETHING demic. POSITIVE TO “All things considered, I thought it was very successful,” Jack Staph, HAPPEN. the Rite Aid Cleveland Marathon’s THIS BRINGS executive director and owner, told IN $15 Crain’s in September. The Cleveland marathon also set MILLION OF up virtual exhibits with a pair of Ohio races that were scheduled for Sep- ECONOMIC tember. The Cleveland marathon’s IMPACT FOR virtual booths on the websites of the Dayton and Akron marathons gave THE CITY.” runners incentives to register for the — Jack Staph, 2021 Rite Aid Cleveland Marathon, Rite Aid Cleveland plus links to purchase gear. Marathon’s Staph believes the virtual exhibits executive will continue to improve, and mara- director and thons will keep some virtual ele- owner ments when in-person races return. The marathon’s executive director is hoping and planning as if that will be the case in 2021. The 44th Cleveland marathon is scheduled for May 15 and 16. “We’re looking for something positive to happen,” Staph said. “This brings in $15 million of economic impact for the city. And that’s something that you have to keep in mind also. We feel obligated to a lot of different people.” — Kevin Kleps

CONTRIBUTED

O U R P EO P L E MAKE US

FOCUS | SMALL BUSINESS | PANDEMIC PERSEVERANCE

 Last check-in: In June, Akron-based Great Lakes Futsal league, which plays a form of indoor soccer, was feeling the impact of not being able to gather with players the way it usually does. Founder Otto Orf was able to complete an abbreviated playoff schedule but was concerned he wouldd not be able to hold the camps he uses each year to identify talent for higher levels of competition, not to mention worried about having a 2021 season.  Today: Things have not gotten “WE’RE NOT easier for Orf, who said he was only able to have one identification camp QUITTING this year and had to do most of his ANYTHING work with national players via weekly Zoom calls. He’s also lost ac- UNTIL WE’RE cess to most of the local school gyms FORCED TO.” he normally uses, meaning he’s been limited to working with play- — Otto Orf, above center, ers at Goodyear Hall in Akron and Great Lakes keeping things socially distant. Futsal founder That’s a challenge, Orf said, because some of the young players he works with have difficulty getting to Goodyear Hall or can’t get there at all. He’s not quitting, though. Orf said he still plans to hold a training academy and to play next season. He’s just not yet sure what that will look like. “Our leagues are going to be 50% of what they were, and I don’t know if our tournaments are going to work out. … We’re going to have to really cut our numbers,” he said. He vows to continue, though, hopefully until the pandemic lets up and he can return the league to its past form. “We’re not quitting anything until we’re forced to,” Orf said. — Dan Shingler

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Virus-killing technology keeps software firm growing

Puppy boom aids recovery

CONTRIBUTED

``Last check-in: In May, Phoenix Enterprise Solutions was the rare company getting a boost from the COVID-19 pandemic. The Canton firm offers software to help users manage contractors doing restoration and recovery work after natural disasters and other mishaps, and many of the more than 600 contractors it works with were already certified in sterilization methods.

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``Today: Business continues to be brisk, said Phoenix chief operating officer Christopher Cutter. Contractors working through the company, many of whom use a virus-killing technology called SteraMist, are keeping Phoenix very busy, he said. In the meantime, Phoenix has been able to capitalize on that business by cross-selling more traditional services, Cutter said. The company has hired two more people since we last checked in, bringing its payroll to 12, Cutter said. It plans to hire three more in the first quarter of next year, he added. “Things are great. When it comes to this, we understand and appreciate the fact that the impact of coronavirus looks to be multiyear or even

``Last check-in: Owner Mike Homan had to furlough one trainer, and his office manager became a volunteer as he coped with a decline in demand during the lockdown. He also had to suspend popular group training sessions and trim the number of dogs he could bring in for intense board-and-train sessions. ``Today: People getting dogs, especially puppies, while stuck at home during the pandemic and shutdowns by other dog trainers have bought inquiries back to pre-COVID-19 levels. Some

A contractor disenfects a client site using the SteraMist system. | CONTRIBUTED

permanent … and we help people understand how to respond to coronavirus,” Cutter said. Cutter thinks that when the pandemic does lift, Phoenix will have more customers for its traditional services because people got to know the company during the crisis. — Dan Shingler

”THINGS ARE BACK TO NORMAL. THIS IS OUR NEW NORMAL.” ——Mike Homan, Sit Means Sit Dog Training owner

offerings have also changed. The puppy training sessions are limited to five, down from eight, because it’s hard to keep social distancing in place with young pups. Popular group sessions for older dogs also require advance registration for 10 owners and their pets; previously as many as 20 would show up. Advance bookings for board-and-train sessions are even longer than in the past. Homan again has two trainers on staff and even expanded his support staff. Homan believes his nursing background has helped the business respond to pandemic requirements quickly. He continues to work full time at a Lorain County nursing home as a registered nurse and has no after-effects from his own bout with COVID-19. “Things are back to normal,” Homan said. “This is our new normal.” — Stan Bullard

“THINGS ARE GREAT. WHEN IT COMES TO THIS, WE UNDERSTAND AND APPRECIATE THE FACT THAT THE IMPACT OF CORONAVIRUS LOOKS TO BE MULTIYEAR OR EVEN PERMANENT … AND WE HELP PEOPLE UNDERSTAND HOW TO RESPOND TO CORONAVIRUS.”

CONTRIBUTED

e

PHOENIX ENTERPRISE SOLUTIONS

——Christopher Cutter, Phoenix Enterprise Solutions chief operating officer

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FOCUS | SMALL BUSINESS | PANDEMIC PERSEVERANCE BEACHLAND BALLROOM & TAVERN

Doing the heavy lifting to stay in financial shape

Despite several sour notes, music manages to play on

``Last check-in: During the shutdown, Specialty Fitness Equipment’s business shifted dramatically from supplying fitness equipment to mostly commercial clients to serving all residential clients. Though the company, a direct distributor for manufacturers, typically doesn’t keep much inventory on hand, owner Chuck Herman in March invested hundreds of thousands of dollars into building an inventory to stay ahead of strain on the supply chain.

``Last check-in: Instead of celebrating its 20th anniversary, the Beachland Ballroom & Tavern effectively closed down March 16 amid COVID-19 lockdowns. The venue pooled government stimulus funds with credit and donations to keep going while using the downtime for renovations — from replacing the roof and HVAC system to revamping the kitchen — in hopes of operating in the future of some kind of modified normal allowing for physically distanced shows and dining.

“WE’RE MAKING SURE THAT WE’RE DOING A BALANCING ACT LIKE EVERYONE ELSE. EVERYONE’S WORKING HARDER TO STAY AFLOAT AND CONTINUE TO DO WHAT THEY DO.” ——Chuck Herman, Specialty Fitness Equipment owner

quickly despite waiting for months to receive some orders from suppliers. “We’ve weathered the storm so far, thank God,” Herman said. “We’re making sure that we’re doing a balancing act like everyone else. Everyone’s working harder to stay afloat and continue to do what they do.” — Lydia Coutré

“We are trying to find ways to stay relevant,” she said. But indoor events are still a puzzle. With physical distancing, the Beachland might operate at 13% of typical capacity, or roughly 64 guests. Turning a profit at that size is not guaranteed. A lifeline could come from the Save our Stages Act. The bipartisan congressional bill, spurred by the National Independent Venue Association, would allocate $10 billion to struggling venues, potentially providing individual grants `Today: ` Beachland co-ownbetween $50,000 and $100,000. But the bill’s moer Cindy Barber loses sleep fretting about the future of mentum has stalled with the political gridlock holdher space, the Waterloo Arts District and her fellow indie ing back another stimulus venues. “WE ARE TRYING TO FIND bill. The Beachland is scrapTimes are bleak, but Baring by, selling merchan- WAYS TO STAY RELEVANT.” ber continues to hold out dise and hosting some ——Cindy Barber, Beachland hope. livestream events. Barber Ballroom & Tavern co-owner “I’m a good juggler. I started the Beachland on is hopeful the kitchen revamp could make the venue more of a food six credit cards,” she said. “But I’m counting on destination. And there’s talk of hosting edu- trying to figure out some kind of state, county cational programming, like interviews with or federal support for the long haul.” — Jeremy Nobile musicians. CONTRIBUTED

``Today: The commercial clients, which historically accounted for 85% of business, began returning in late May and are now back at normal volumes. On top of that, the residential orders that helped Specialty Fitness Equipment through the initial months of the pandemic continue to stream in as people are hesitant to return to shared fitness centers. Residential revenue has more than doubled, but commercial sales continue to take up the bulk of business now that they’re back, Herman said. By the end of October, Specialty Fitness Equipment had surpassed its total revenue for 2019. “The business is very busy, but we’re working so much harder,” Herman said. Selling a treadmill to a residential client visiting the showroom takes more time than filling a bulk order from a commercial client, typically handled over Zoom or a conference call. Plus, Herman’s continuing to balance his finances with ordering large quantities to stay ahead of continued large supply chain delays. Herman’s initial gamble of building an inventory has allowed him to serve customers

CONTRIBUTED

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FOCUS | SMALL BUSINESS | ADVISER

Consumers have changed how they shop, work; now marketing must change BY LAURA SHERIDAN

 Question 3: What do you need to ask? The third step in developing a successful research study is identifying the optimal questions to elicit the responses you have to hear. The questions you ask need to be tailored to your target audience. Word choice and phrasing matter. Use terminology that resonates with each segment, and don’t ask leading questions.  Question 4: How can you gain access to the insights? The fourth step is selecting the appropriate research channel. Which channel will secure authentic, actionable input? Options include focus groups, one-on-one interviews, observational research and online surveys. Once you’ve answered those four questions, you’re ready to conduct robust research. Don’t forget: Research also includes analyzing industry data and trends in addition to your own primary research. Staying relevant to your customers

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also requires you to look inward. What “job” is your product doing for your customers? Do you have the right people and resources to develop and implement targeted marketing strategies?

COVID-19 has changed consumer behavior. At-home working, athome entertainment and at-home dining have necessitated a change in shopping and buying that many analysts predict will remain for the Your product long term. Maintaining the same Is your product doing marketing strategies that the job that your customer worked prior to the panneeds today? People’s demic likely won’t yield the shopping and buying besame results going forward. haviors have changed. We If you’re committed to have different expectations building long-term relaof the products we buy and tionships with your custhe job they’re doing for us. tomers, then you must One example is Justin’s pause and ask: What can Laura Sheridan Nut Butters. The Colorawe do to ensure our brand is president of do-based small business stays relevant to our cus- Viva La Brand, sells single-serve squeeze tomers? packets of peanut and ala Clevelandmond butter at grocers. It based brand also sells its nut butters in and marketing Conduct research glass jars, but it’s the strategy, squeeze packs that cataConducting research research, and pulted the company’s sucthat results in insights to agency search cess. That all changed help guide your marketing firm. with COVID-19. Consumefforts involves answering ers no longer stock up on four key questions: squeeze packs to take to  Question 1: Why are you conducting work or to social outings. The job consumers are looking for Justin’s research? Research from last year is obsolete. to do for them has changed. Instead It’s time to check back in with your of single-serve squeeze packs, concustomers. How have their daily rou- sumers need family-sized jars for tines changed? How have their prior- home use. That change in consumities changed? How has the way they er behavior necessitated changes to interact with your products or service Justin’s manufacturing, merchanchanged? What must you know dising and marketing. Is your product aligned with the about your customers to develop a targeted, effective marketing pro- job your customers are hiring it to do? gram?  Question 2: Who needs to be part of your research study? The second step is identifying from whom you need to learn. Which customer segments do you need to hear from? Current customers you’re at risk of losing? Your oldest customers? Loyal customers? New customers? Future customers you haven’t yet convinced to try your offerings?

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Your people Do you have the right team in place? Numerous studies highlight the flight to digital. Stuck at home, consumers are conducting their lives on their digital devices. Does your team have the skill and knowledge to execute a digital-first marketing program? Now’s the time to assess your people. It starts with your business goals. What support do your sales and business development talent need to achieve those goals? That’s marketing’s job. It’s not about producing star-studded ad campaigns that garner a lot of attention. It is about supporting sales and business development. Once your goals are clearly articulated and you know the skills and experience it takes to achieve them, it’s time to assess your team. Do you have the skills and experience you need? Are the right people in the right roles to leverage their passion and expertise to support your business? The same questions need to be asked of your external partners from ad agencies to graphic designers to digital marketers. Do your partners bring creative, on-brand ideas and passion to leverage digital marketing opportunities to promote your brand? COVID-19 has changed how we shop, work and live. Is your company making the changes necessary to stay relevant?

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CRAIN'S LIST | BANKS Ranked by Northeast Ohio deposits as of June 30, 2020 NORTHEAST OHIO DEPOSITS (MILLIONS) RANK

COMPANY MAIN LOCAL OFFICE

6-30-2020

6-30-2019

% CHANGE

LOCAL OFFICES

EMPLOYEES WORLDWIDE (FTE) 6-30-2020

HOLDING COMPANY

TOP LOCAL EXECUTIVE

1

KEYBANK NA 127 Public Square, Cleveland 44114 216-689-3000; key.com

$34,777.9

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112

16,913

KeyCorp Cleveland

Christopher M. Gorman, chairman, president CEO

2

HUNTINGTON NATIONAL BANK 200 Public Square, Cleveland 44114 800-480-2265; huntington.com

$23,614.9

$20,503.2

15.2%

200

15,790

Huntington Bancshares Columbus

Sean P. Richardson, Cleveland regional president

3

PNC BANK 1900 E. 9th St., Cleveland 44114 888-762-2265; pnc.com

$17,100.9

$13,697.3

24.8%

114

52,146

PNC Financial Services Group Inc. Pittsburgh, Pennsylvania

Pat Pastore, regional president

4

CITIZENS BANK 1215 Superior Ave., Cleveland 44114 216-277-5326; citizensbank.com

$12,484

$10,756.2

16.1%

79

18,165

Citizens Financial Group Inc. Providence, Rhode Island

James M. Malz, president

5

JPMORGAN CHASE BANK NA 1300 E. 9th St., Cleveland 44114 800-935-9935; chase.com

$10,526.3

$8,711.2

20.8%

85

200,025

JPMorgan Chase & Co. Cleveland

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

6

FIFTH THIRD BANK 600 Superior Ave. E., Cleveland 44114 216-274-5533; 53.com

$6,959.1

$5,567

25%

70

21,064

Fifth Third Bancorp Cincinnati

Joseph D. DiRocco, regional president, Northern Ohio

7

THIRD FEDERAL SAVINGS AND LOAN 7007 Broadway Ave., Cleveland 44105 800-844-7333; thirdfederal.com

$6,545.7

$6,088.6

7.5%

21

998

TFS Financial Corp. Cleveland

Marc A. Stefanski, chairman, president, CEO

8

U.S. BANK 1350 Euclid Ave., Cleveland 44115 216-623-9300; usbank.com

$3,631.5

$2,726

33.2%

67

69,626

U.S. Bancorp Minneapolis, Minnesota

Alan Zang, regional president, Northeast and Central Ohio markets

9

OHIO SAVINGS BANK (A DIVISION OF NEW YORK COMMUNITY BANK) 1801 E. 9th St., Cleveland 44114 216-736-3480; mynycb.com

$2,498.7

$2,341.2

6.7%

28

2,763

New York Community Bancorp Inc. Westbury, New York

Anthony Donatelli, executive vice president

10

PREMIER BANK (FORMERLY HOME SAVINGS BANK AND FIRST FEDERAL BANK OF THE MIDWEST )1 275 W. Federal St., Youngstown 44503 330-742-0500; yourpremierbank.com

$2,312.7

$1,897.1

21.9%

26

1,077

Premier Financial Corp. Defiance

Donald P. Hileman, CEO; Gary M. Small, president

11

DOLLAR BANK FSB 1301 E. 9th St., Cleveland 44114 216-736-8934; dollar.bank

$2,259.4

$1,961.5

15.2%

29

1,398

—

William M. Elliott Jr., executive vice president, regional lending director

12

FARMERS NATIONAL BANK OF CANFIELD 20 S. Broad St., Canfield 44406 888-988-3276; farmersbankgroup.com

$2,138.6

$1,705.3

25.4%

32

412

Farmers National Banc Corp. Canfield

Kevin J. Helmick, president, CEO

13

FIRST NATIONAL BANK OF PENNSYLVANIA 55 Public Square, Cleveland 44113 800-555-5455; fnb-online.com

$1,703.9

$1,360.4

25.2%

26

3,963

F.N.B. Corp. Pittsburgh, Pennsylvania

Jeffrey S. Bechtel, regional market executive; president, Cleveland region

14

FIRST FEDERAL LAKEWOOD 14806 Detroit Ave., Lakewood 44107 216-529-2700; ffl.net

$1,612.7

$1,618.4

-0.4%

19

393

First Mutual Holding Co. Lakewood

Timothy E. Phillips, president, CEO

15

TCF NATIONAL BANK (FORMERLY CHEMICAL BANK) 3900 Park East Drive, Suite 300, Beachwood 44122 216-706-3709; tcfbank.com

$1,555.5

$1,313.5

18.4%

24

6,855

TCF Financial Corp. Detroit, Michigan

Jamie R. Lynch Jr., regional president, Ohio

16

WESTFIELD BANK FSB Two Park Circle, Westfield Center 44251 800-368-8930; westfield-bank.com

$1,512.9

$1,194

26.7%

7

182

—

Jon W. Park, chairman, CEO

17

MIDDLEFIELD BANKING CO. 15985 E. High St., Middlefield 44062 440-632-1666; middlefieldbank.bank

$1,031.9

$963.9

7.1%

11

198

Middlefield Banc Corp. Middlefield

Thomas G. Caldwell, president, CEO

18

NORTHWEST BANK 457 Broadway Ave., Lorain 44052 440-244-8014; northwest.com

$992.3

$886.3

12%

21

2,519

Northwest Bancshares Inc. Warren, Pennsylvania

Kevin Nelson, president, Ohio region

19

CIVISTA BANK 100 E. Water St., Sandusky 44870 419-625-4121; civista.bank

$977.6

$770.8

26.8%

13

456

Civista Bancshares Inc. Sandusky

Dennis G. Shaffer, president, CEO

20

FIRST COMMONWEALTH BANK 1100 Superior Ave., Suite 1365, Cleveland 44114 800-711-2265; fcbanking.com

$836.5

$713

17.3%

13

1,465

First Commonwealth Financial Corp. Indiana, Pennsylvania

Jane Grebenc, president; George Moy, senior vice president, regional president for northern Ohio

21

CORTLAND SAVINGS AND BANKING CO. 194 W. Main St., Cortland 44410 330-637-8040; cortlandbank.com

$648.6

$577

12.4%

13

153

Cortland Bancorp Cortland

James M. Gasior, president, CEO

22

WAYNE SAVINGS COMMUNITY BANK 151 N. Market St., Wooster 44691 330-264-5767; waynesavings.com

$415.1

$379.3

9.4%

10

96

Wayne Savings Bancshares Inc. Wooster

James R. "Jay" VanSickle II, president, CEO

23

ANDOVER BANK 600 E. Main St., Andover 44003 440-293-7256; andoverbankohio.com

$364.2

$311.5

16.9%

7

81

Andover Bancorp Inc. Andover

Stephen E. Varckette, president, CEO

24

PORTAGE COMMUNITY BANK 1311 E. Main St., Ravenna 44266 330-296-8090; pcbbank.com

$344.6

$280.3

23%

3

74

Portage Bancshares Inc. Ravenna

Richard J. Coe, CEO

25

FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF LORAIN 3721 Oberlin Ave., Lorain 44053 440-282-6188; fflorain.bank

$338.6

$315

7.5%

6

96

—

Michael E. Brosky, president

Researched by Chuck Soder: csoder@crain.com | Financial data comes from fdic.gov. This list excludes banks registered as savings institutions. It includes deposits in 15 counties: Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne. NOTES: 1. Home Savings and First Federal Bank of the Midwest became known as Premier Bank in June 2020 following the merger of their parent companies in January.

Get 51 banks and historical deposit data in Excel. Become a Data Member: CrainsCleveland.com/data 20 | CRAIN’S CLEVELAND BUSINESS | November 16, 2020

P020_CL_20201116.indd 20

11/12/2020 3:50:59 PM

BIDEN

GRADUATE

From Page 6

From Page 2

Will progressive ideas get a boost? While Biden is viewed as a moderate, progressive ideas percolating in the Democratic Party get a boost in this new administration. Housing finance reform, including possibly expanding the Community Reinvestment Act, is likely to be looked at. This could extend CRA requirements to nonbank institutions that are not presently subject to its lending guidelines. There has been talk of offering financial services through post offices to address issues with unbanked and underbanked populations. This has been an issue in low- to moderate-income areas, like Cleveland’s East Side. How that could work is far from being remotely clear, but it’s something banks would likely impose because it could take away current or potential customers. Reducing abilities to collect overdraft fees, capping credit card rates and breaking up large financial institutions are other progressive ideas that could get attention in the new administration. Any changes like these could further squeeze bank margins in an already low-interest-rate environment that makes banks focus on controlling expenses and bolstering fee-generating businesses to support income. Trump gave banks a significant boost during his presidency by trimming the corporate tax rate to 21% from 35%. Taxes likely will need to be increased at some point to offset government spending, particularly in the

Progressive ideas should get a boost in Joe Biden’s administration, but such initiatives likely will face partisan gridlock. | JOE RAEDLE/GETTY IMAGES

wake of coronavirus stimulus efforts. But with the political makeup on Capitol Hill, the odds of a major tax increase are low, said Fred Cummings, president of Elizabeth Park Capital Management, a bank hedge fund in Pepper Pike. “It seems very unlikely to go from 21% to say, 28%. Maybe it’s up to 25%,” Cummings said. “Republicans will fight against any tax increase and will negotiate it down. That would be a win for banks and all businesses. Whether we even get a tax increase at all is a fair question.”

Will uncertainty prevail? Kevin Jacques, a former bank regulator and current Boynton D. Murch Chair in Finance at Baldwin Wallace University, suspects tougher sledding than not for most liberal or progressive initiatives. “I really think there is going to be

more gridlock than people are anticipating for the next two years,” he said. “I think it is going to be very difficult for the Biden administration to advance some proposals he otherwise would have.” Banks typically have strategic plans in place governing their activity over periods of roughly three to five years. With more uncertain than certain at this time, Palmer said most of those plans are “on the shelf gathering dust.” “The pandemic won’t magically end on Dec. 31,” he said. “And the impacts carry easily into 2022. A lot depends on if there’s a vaccine, if it’s successful, if people take it. It is likely 2021 will be somewhat similar to 2020 in terms of banking activity. By 2022, we may start seeing some kind of cloud clearing to where you can say, ‘I now know where we’re headed.’ ” Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

Business school dean Jennifer Kinnaird said students that are paying non-discounted rates does help to offset undergraduate enrollment losses on the Painesville campus. “We’re looking at where is the market?” she said. “Undergraduate programs are not going to go away. There’s always going to be a need for them, but we know there’s ebb and flow in demand and what students’ ideas and future plans are. So as we look at that, how do we make sure that we can remain viable at both program levels? There’s growth opportunity in the graduate area.” Twenty-three percent of Lake Erie College’s roughly 1,000 students comprise its graduate enrollment, higher than its other similarly sized peers in the region. The campus wants to expand on that as it works on a new online masters of professional studies degree expected to launch in August. The credit-hour cost is the same as its MBA offering. Roughly 60 miles away in Alliance, the University of Mount Union recently earned approval for its new fully online MBA program from its accreditor. The 36-credit program is set to begin next May. Credits are listed at $695 per hour, with discounts available for alumni, too. Kristine Still, founding dean of the College of Applied and Social Sciences, said the university is working to build its graduate culture on its campus of about 1,900 students. “We’re kind of on a newer fron-

tier with graduate education here,” she said. “But we just want to make sure that the values of the institution remain intact.” Many new graduate offerings are online-only or have a digital option. Some schools across the country use what are known as online program managers (OPM) to help facilitate and run these programs. Agreements vary from place to place, but OPMs have been estimated by some to receive as much as 40% to 60% of a program’s tuition revenue. Notre Dame College uses a company called Wiley Education Services. Officials declined to share financial details of the college’s arrangement but sung the company’s praises for the range of services it provides. “We’ve certainly received many, many benefits,” said Florentine Hoelker, dean of online and graduate programs “They pay for all the marketing for online and graduate programs. They’ve helped us. Because we’re a small liberal arts college, we don’t have a lot of resources.” The campus currently offers degrees in education, national security and nursing in addition to its new MBA degree. Like its peers across the region, Notre Dame is considering increasing master’s degrees as part of its short- and long-term plans, Hoelker said. That growth is already happening. Hoelker said numbers for some spring 2021 graduate programs are already seeing a “surge” compared with the previous spring. Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

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November 16, 2020 | CRAIN’S CLEVELAND BUSINESS | 21

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11/13/2020 2:32:15 PM

JONES DAY

From Page 1

Of course, leaving may be harder for some than others because of the challenges that brings for securing another job. Attorneys can be leery of doing this lest they be branded as difficult, which can negatively impact their careers. But years of controversies surrounding Trump and the recent election lawsuits may be adding up to a tipping point for some otherwise quiet dissenters. “We have an election with no evidence of voter fraud, and it’s being contested,” the ex-Jones Day lawyer said. “The current administration is not really agreeing to a full transfer of power. You have a complete affront to democracy, and people are willing to stand up in court and defend this?” According to the Times, some senior attorneys at the Cleveland-founded firm are expressing comparable concerns today. Columbus-based Porter has held internal meetings about the firm’s recent work for Trump and the Republican party. At least one lawyer is known to have quit in protest. Even unpopular people and cases deserve the best legal representation they can get, said Mary Amos Augsburger, CEO for the Ohio State Bar Association. She said Jones Day and Porter are “well-respected firms with outstanding lawyers who take seriously their professional responsibility.” Porter touched on these professional obligations in a statement provided via email on Wednesday, Nov. 11: “Porter Wright is bound by our legal ethical obligations to keep relationships and work

President Donald Trump speaks in the briefing room at the White House on Nov. 5. At the time, Trump was in a close race against Democratic presidential nominee Joe Biden, but the race has since been called for Biden. | CHIP SOMODEVILLA/GETTY IMAGES

with both current and former clients confidential. Porter Wright has a long history of election law work, during which we have represented Democratic, Republican and independent campaigns and issues. At times, this calls for us to take on controversial cases. We expect criticism in such instances, and we affirm the right of all individuals to express concern and disagreement.” While it’s more common to keep personal gripes to oneself in the legal world, especially in a BigLaw environment, Patricia Oliver, a senior attorney with Tucker Ellis, one of the largest firms in Cleveland, said it appears as though a boiling point is being reached. “I think it is an interesting time in American history with how highly politicized these issues have become,”

she said, “and younger people in particular are speaking up about them.” The Lincoln Project, a political action committee that features former Republicans who’ve put out ads opposing Trump, recently targeted Jones Day and Porter, encouraging employees there to “resign in protest.” While some lawyers are speaking up, and some may even quit, it’s unlikely either firm sees a true exodus of attorneys, said Chris Sagers, the James A. Thomas distinguished professor of law at Cleveland-Marshall College of Law. Meanwhile, according to campaign finance reports cited by the Times, Jones Day has collected at least $20 million in fees from Trump since 2015, while Porter has earned at least $727,000 this year from Trump and

the Republican National Committee. Ditching such lucrative clients — who also, in Jones Day’s case, have appointed prominent partners to positions such as White House counsel and solicitor general — is improbable. “I don’t think either of these firms will just dump the Trump campaign or stop this work because liberal members of the firm are unhappy,” Sagers said. “I also have to believe that for every liberal lawyer in these firms unhappy with these cases, there is at least one conservative lawyer who believes in the cases with their whole soul and hopes that they’ll win and Trump will be reelected.” Sagers shared this perspective prior to Nov. 12. That’s when, to the surprise of observers, Porter filed a motion to withdraw from the very case in Pennsylvania it filed earlier in the week alleging “irregularities” in voting across the state. Per that filing: “Plaintiffs and Porter Wright have reached a mutual agreement that Plaintiffs will be best served if Porter Wright withdraws, and current co-counsel and such other counsel as Plaintiffs may choose to engage represent Plaintiffs in this case. Plaintiffs are in the process of retaining and causing other counsel to enter an appearance herein. Such counsel will be aware of the schedule set by the Court in this matter and will be prepared to proceed according to that schedule. In addition, Porter Wright’s co-counsel, Ms. (Linda) Kerns, will continue as counsel in this matter.” Asked about the motion to withdraw, Porter provided this statement on Friday, Nov. 13: “We can confirm that the firm has filed a motion to withdraw from the Pennsylvania Federal District Court case of Trump

for President, Inc. vs. Boockvar. We’ve committed to the court to fulfill our obligations as required to ensure transition to substitute counsel, and so as not to cause material adverse effect on the client’s interest. We will have no further comment.” Jones Day did not respond to a request for comment about the Times story or any reported backlash among attorneys in relation to election lawsuits. The firm did post a statement regarding election litigation on its website, however, noting it has no plans to withdraw from representation in cases in Pennsylvania while also seeking to clarify that it’s not representing a sitting president. Per that statement, the firm said: Jones Day is not representing President Trump, his campaign, or any affiliated party in any litigation alleging voter fraud. Jones Day also is not representing any entity in any litigation challenging or contesting the results of the 2020 general election. Media reports to the contrary are false. Jones Day is representing the Pennsylvania GOP in pending litigation brought by private parties in April 2020 and the Pennsylvania Democratic Party in August 2020. In that litigation, the Pennsylvania Supreme Court issued an order extending the statutory deadline to return mail-in ballots established by the Pennsylvania General Assembly. According to Federal Election Commission records cited by the Times, Jones Day has received more than $4 million in fees from Trump, political groups supporting him and the RNC this year. Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

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391 West Washington Street, Painesville, Ohio 44077 22 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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11/13/2020 2:43:12 PM

SPONSORED CONTENT

S1 October 19, 2020

THOUGHT LEADER FORUM

IMPACT INVESTING THE WORLD OF IMPACT INVESTING Over the past decade, impact investing has made significant inroads into global investment strategies, as more investors prioritize positive social and environmental impacts alongside financial gains. The momentum of impact investing remains strong during the pandemic, and it is expected to build in the forthcoming years, according to stakeholders in the impact investment industry.

THE MOTIVATIONS OF IMPACT INVESTORS Investors who care about social and environmental well-being and positive financial returns make “impact investments” into organizations, companies and funds with the goal of generating a measurable and beneficial impact on a social cause and the environment, in addition to financial returns. Impact investors represent both individual and institutional investors, including fund managers, development financial institutions, banks, private foundations, and pension funds and insurance companies.

MARKET VALUE At the end of 2019, an estimated 1,720 organizations managed $715 billion in impact investing Assets Under Management, according to the Global Impact Investing Network. The majority of these organizations’ headquarters are located in the U.S. and Canada (58%); followed by Western, Northern and Southern Europe (21%); Africa (6%); Latin America and the Caribbean (4%), with smaller percentages in the Middle East, Eastern Europe and Russia, Asia, and Australia.

IMPACT INVESTOR PROFILES

PROSPECTS FOR FURTHER GROWTH

Women and millennials — who are on the cusp of managing the majority of the nation’s wealth — comprise powerful cohorts in the impact investing industry. Millennials are more than twice as likely to make a sustainable investment than the average investor. Women comprise a powerful constituency, with about 63% of women compared with 41% of men saying that social, political and environmental concerns are important to their investment decisions, and 76% of women wanting their investments to align with social and environmental values.

The GIIN’s 2020 survey notes that global impact investing has remained strong during the global pandemic. “Over the past decade, we have seen incredible growth and increased sophistication in impact investing,” said Amit Bouri, co-founder and CEO of GIIN, in a statement. “Despite challenges or perhaps because of them, many investors have, and will continue to turn to impact investing to contribute to social and environmental solutions. Investment capital has an important role to play in driving positive impact for our communities and planet, and I believe we’ll see even greater possibilities for what impact investing can achieve, in this moment, as well as in the years ahead.”

SOURCES: Global Impact Investing Network, Ohio University, Pensions & Investments, SRI Conference & Community

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

The importance of due diligence in impact investing BRANDON FREDERICKS CPA, principal, AGP Advisory Apple Growth Partners bfredericks@applegrowth.com 216-674-3737 With eight years of experience in public accounting, Fredericks specializes in financial statement audits, advisory accounting projects, data analytics, risk management and assessment, and project management. Fredericks is principal of Apple Growth Partners’ new advisory services, which can help investors navigate the impact investing process with detailed due diligence checklists compiled over years of experience in the investment arena. Our world is in a constant state of change. This holds true for how businesses see their role in the world with the ever-changing ecosystem we live and work in every day. Whether as a business owner or eager investor, the mission and purpose behind a business is much more complex than just the bottom line. Nowhere is this more evident than in the space of impact investing.

Impact Investing Network). But just like any business investment, completing financial due diligence will ensure your objective of a strong double bottom line is achieved.

Defined as investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return, this new wave of investing has seen tremendous growth with the overall market reaching an estimated $715 billion (Global

When it comes to impact investing, financial due diligence is more important than ever.

There are three key focal areas to keep top of mind to ensure these investing opportunities turn out successful.

As we think about the businesses that focus on more than just the bottom line, this can create additional challenges when evaluating a

potential “impact” opportunity. The investor is trying to balance not only the social impact these businesses are making to our world, but the overall strength of the business today and into the future. The due diligence process can really help assess the business and financial side independently of the social impact. Being able to evaluate these independently will help provide key insights into making a great investment. The role of the adviser should be critical in the overall investment opportunity. Though the market data and trends are positive for impact investing, it does not come without challenges. The top three common challenges noted from a recent Global Impact Investing Network survey were: • Appropriate capital across the risk and return spectrum • Common understanding of definition and segmentation of impact investing market

Stay the course on financial due diligence strategies. The key with any due diligence is ensuring the scope and objectives are clear and executed upon — regardless of the investment. Therefore, as these opportunities come up, approach the financial due diligence process with the same vigor and intensity as a conventional investment. As we educate within the marketplace, our role as financial due diligence experts is to: • Help you, the investor, better understand the business from a financial perspective • Identify and articulate the current and potential financial risks • Assess the earning quality and financial results. Impact investing is the opportunity to create a positive change, while utilizing financial due diligence to ensure success.

• Suitable exit options Building a strong team of advisers on the front end and investing in the due diligence process at large will help to mitigate these factors prior to any type of investment.

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.

P023_CCL_20201116.indd 23

11/12/2020 8:39:27 AM

AKRON REAL ESTATE

Akron to weigh $40 million development in Merriman Valley Petros Homes looks to build nearly 200 townhomes on former golf course site BY DAN SHINGLER

Akron’s top planning official is recommending the approval of a conditional-use permit that would pave the way for development of the former Riverwood Golf Course site in the Merriman Valley. Developer Sam Petros, CEO of Petros Homes in Broadview Heights, said he plans to build 197 housing units on the site, most of them townhomes for lease, at a cost of about $40 million. Petros said he is partnering with Medina-based Pride One Construction for the project, with Petros as managing partner. They expect to close on a purchase of the land, located at 1870 Akron-Peninsula Road, the week of Nov. 16, he said. The developers need the conditional-use permit to build housing on the site, which is zoned for commercial use. The proposed project would be built in clusters of four, six and eight townhomes, each between about 1,300 square feet and 1,600 square feet in size, Petros said, with 28 units offered for sale and 169 leased. For-sale units likely would be offered at between $230,000 and $260,000, while rents on the others would be between $1,400 and $2,000 per month, he added. That would only use up a portion of the parcel, though. The rest would be preserved and open to the public, including access to the Cuyahoga River that winds along the western side of the site. Petros said he would deed the portion of the land he doesn’t use to the West Creek Conservancy, an orga-

Merriman Valley supporters Brett and Melissa Safran joined a Nov. 7 rally to preserve green space in the area until a master plan for development is completed. The rally took place before news of the proposed Riverwood project broke. | CAROLYN SPIVAK COLBOW

nization in Parma that works to protect wetland and other natural areas around Greater Cleveland. “It’s 78 acres in total, 48 of them are going to be open space, plus another 9 that’s green space around the units. … We’ll have 6,750 feet of riverfront, and it’s all going to be conserved with them at West Creek,” Petros said. Jason Segedy, Akron’s planning and urban development director, said he’ll recommend that the city’s planning commission and council approve the conditional use, which comes before the commission on Nov. 20. “We (the planning department) are recommending the planning commis-

sion and council ultimately approve it,” Segedy said. “We think it’s a better land use than electroplating or some of other things that could go there.” An approval of the project would be to the consternation of at least some residents of Akron and Cuyahoga Falls. The two cities share a zig-zag border in the scenic Merriman Valley, which is dotted with parks and is seen by many as the gateway to the nearby Cuyahoga Valley National Park. Residents have been organizing rallies to halt development in the area until Akron and Cuyahoga Falls complete a promised master plan for the Merriman Valley that’s slated to be done next year.

Some residents, such as Drew Holland — who said he has an Akron address but lives in Cuyahoga Falls’ taxation area — say they’re not prepared to stop their efforts. While Holland said the provisions Petros is making to preserve green space are nice, he still wants to halt development until the master plan is complete. “What we’re going to do as a citizen group is voice our opposition to rezoning and development prior to having a master plan,” Holland said. “Why are we going to go through a master plan if Akron has already made decisions on the two largest developments? Are they serious

about (the master plan)? I think not — and if they’re going to move ahead with developing the two largest parcels, I think that’s a problem.” Holland also has taken issue with Akron’s recent efforts to market 45 acres the city owns on Theiss Road in the valley for residential development. Voices like Holland’s might be having an impact. The city is considering selling the Theiss Road property to the Western Reserve Land Conservancy, which would preserve the mostly wooded site. Akron is still considering proposals to develop that site with new homes as well, Segedy said, but on Nov. 10 officials said they plan to put out an RFP for other conservation bids because the city is interested in further exploring that option. But Riverwood is another matter, according to Segedy, because it’s not city-owned land, and the city can’t simply dictate what a property owner can and cannot build as long as projects adhere to existing zoning codes. If the city doesn’t get a residential project in on the Riverwood site, it risks allowing other types of development that Segedy said probably are not suited for the area but which would be allowed by old zoning codes still in place. “It allows things like car repair shops, even light manufacturing and wholesaling,” he said of the code. “Our position is that that kind of zoning is kind of outdated there. … Residential is actually a better fit for the valley than some of those other uses.” See MERRIMAN on Page 25

FOOD & RESTAURANTS

COVID’s takeout trend helps propel Romeo’s franchise expansion

With sales skyrocketing, Medina pizza company hopes to have 250 stores in the next five years BY JUDY STRINGER

Election night was the latest round of proof that pizza is the ultimate comfort food for many of us. Media outlets from Los Angeles to Detroit reported Americans ordered pizza to self-sooth more so than any other food as they anxiously awaited results. For the local Romeo’s Pizza chain, election night sales “were the highest in company history for a Tuesday,” said chief brand officer David McCafferty. “We also run a BOGO deal on Tuesdays. So, we have had some big nights before, but this was the highest,” he said. Romeo’s, in fact, has been having a lot of big nights lately. While the restaurant industry overall continues to reel from COVID-related losses, the Medina-based pizza maker is thriving. Systemwide sales for Romeo’s were up 23.1% in the first six months of 2020, compared with the first half of 2019, and the company opened six new locations during the pandemic, bringing its store count to 45. CEO Ryan Rose said three more locations are under construction and due to open in the next 60 to 90 days. In addition, Romeo’s recently closed area development agreements that will debut the brand in Colorado, Texas and Nigeria. It currently has

Medina-based Romeo’s Pizza has big expansion plans to bring hundreds of its stores to new areas in the next five years. The Brunswick store is seen here. | CONTRIBUTED

locations in Ohio, North and South Carolina, Indiana, Florida and Saudi Arabia. Much of Romeo’s recent growth, Rose said, can be attributed to the pandemic. Demand for pizza delivery and takeout is surging as people eat more meals at home. Through June, Romeo’s same-store sales jumped 18.4% over that period last year. Those gains fall in line with the industry’s heaviest hitters. Same-store sales at Domino’s Pizza, which has 17,000 locations worldwide, were up 16% during the second quarter compared to Q2 2019. Papa John’s Pizza (5,300 locations) saw a 28% samestore sales bump in the second quarter, while Pizza Hut (17,800 locations)

generated a 16% same-store sales growth for Q2. Unlike the latter two competitors and the pizza industry overall, however, Romeo’s went into 2020 as a growing company. In 2018, systemwide sales increased nearly 5.7% over 2017 for a company record of $23 million, according to McCafferty. Romeo’s doubled the 2018 sales growth in 2019, ending the year with $25 million in sales, a 12.3% increase. “In 2019, we hit over one billion orders for the very first time,” said Rose, who purchased his first Romeo’s franchise in 2013 with partner Michael Rao, and bought the business outright in 2016. “In January and February, we were

growing at a pace similar to 2019, which was very good, but then when March 16 hit, it really accelerated. We had one week where we were up over 52% year over year.” Even before the pandemic, Rose and his team had set a course for expansion, buoyed primarily by shifting market dynamics. Restaurants, Rose explained, were gaining ground on grocery stores as the main source of meals for Americans toward the later part of the 2010s. And, he added, Romeo’s strong digital ordering and delivery backbone made it a major contender among investors interested in entering the pizza delivery space. “The reason a Papa John’s or a Domino’s can’t add a ton of new locations is because they already have a ton of locations,” he said. “With an emerging brand like Romeo’s, we have markets that are available for development.” The company also benefits from an area development model that focuses on selling geographical territories to investors rather than single franchise units. Rose said area developers typically agree to establish a minimum of 20 stores, either by opening locations themselves or by franchising to others. “They still have some of the franchisor’s responsibility to manage

their market if they decide to sell to a franchisee and build out their market faster, and for that they get to participate in royalty collection,” he said. The area development strategy has helped to expedite expansion, according to Rose, “and really position us for exponential growth.” Romeo’s will have 60 franchise locations by the end of 2021, if all goes as planned, with a goal of 250 total stores over the next five years. Rao, who is chief strategy officer at the chain, said the area development approach also has helped Romeo’s better align with management teams that can adhere to the company’s strict product standards. “When we execute our product at the highest level, it’s better than the competition, so we just need to make sure the partners that we are selecting are the ones who will deliver the product at that level,” he said. Given those tailwinds, Rose said Romeo’s is uniquely positioned to take advantage of the added COVID pizza push. “It takes 90 days to permanently change a lifestyle,” he said. “So, we have now gone through two cycles that could impact consumer behavior for the foreseeable future.” Contact Judy Stringer: clbfreelancer@crain.com

24 | CRAIN’S CLEVELAND BUSINESS | NOVEMBER 16, 2020

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11/13/2020 3:35:02 PM

RICHMAN

A restoration project easily could cost more than $60 million. Demolition would be a multimillion-dollar endeavor — and a controversial one, since the building is protected as a city landmark and has been listed on the National Register of Historic Places since 2012. That national register listing makes the complex eligible for federal and state tax credits for historic preservation. The site also sits just inside the boundaries of an Opportunity Zone, a federally designated area that offers tax deferment and potential tax breaks to investors.

From Page 1

F.W. Woolworth Co. bought the company in 1969 and closed the Cleveland plant, and the brand’s remaining stores, in 1992. Since then, the headquarters complex has languished in a neighborhood hard hit by population loss, foreclosures and blight. The current owner, a company helmed by immigrant entrepreneur Derek Ng, acquired the property in 2009. Early on, Ng promoted his vision for a mixed-use makeover of the plant. He pitched Chinese investors on Cleveland through a series of online videos. In news stories, he talked about trying to raise funds through the federal EB-5 visa program, which offers U.S. residency to foreign investors who put money into job-creating projects. But Ng’s plans never panned out. He declined to comment for this article. A listing for the 6-acre site popped up online Oct. 29 through the Newmark real estate brokerage. Terry Coyne, a Newmark vice chairman, said Ng decided to put the complex up for sale after sustaining a back injury and being urged by his wife, a doctor, to slow down. So far, Coyne and colleague Richard Sheehan have fielded inquiries from manufacturers and apartment developers, including an out-of-state company whose deals involve low-income housing tax credits. The building, with roughly 2 acres that once served as parking, also might be a good candidate for government uses, Coyne said. “It would be a great location to move county and city offices from downtown,” he said, noting ongoing discussions about the future of Cuyahoga County’s aging Justice Center complex on Ontario Street.

Preservation or demolition

The Richman signage stills hangs above the front entrance to the former factory building, a 638,000-square-foot complex that looms over East 55th Street south of Superior Avenue. | PHOTOGRAPHS BY MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS The columns in the Richman Brothers Co. complex, built in 1915 and expanded in waves into the 1940s, are thickest on the lower floors. They narrow as the building rises to five and six stories.

A Herculean effort Taking on such an enormous building, in a downtrodden stretch of the Goodrich-Kirtland Park neighborhood, would be no small task. The old factory, just over a mile from Lake Erie, anchors a forgotten block flanked by churches, fast food restaurants and discount retail. Across East 55th, the Cleveland Metropolitan School District’s yellow-brick Willson school building has been moldering, vacant and vandalized, for years. Cleveland’s Board of Education is scheduled to vote Tuesday, Nov. 17, on offering the property for sale to charter schools. If there aren’t any takers, the district could appeal to a broader pool of potential buyers. An August appraisal limited its scope to the land, valued at $175,000, indicating that the former school likely isn’t salvageable. By contrast, Ng has managed to keep the Richman building largely secure, with chains and padlocks on the front doors and perimeter fencing. Still, there are signs of break-ins:

MERRIMAN

From Page 24

Segedy and Petros both maintain that building on the Riverwood site would be less disruptive than developing most other places in the valley. That’s because trees were cleared for the golf course long ago, they said, and Petros plans to build mostly on that land and to leave forested portions of the site intact. Segedy also said Petros was cooperative when the city asked him for

A legless armchair sits, covered with dust, on an otherwise empty floor.

“WE (THE PLANNING DEPARTMENT) ARE RECOMMENDING THE PLANNING COMMISSION AND COUNCIL ULTIMATELY APPROVE IT.” ——Jason Segedy, Akron director of planning and urban development, about the proposed Petros development

“hundreds of person hours” worth of design changes on the project, dramatically changing the look and the size of the project to satisfy the city. Petros said his original proposal called for 800 units, but at the city’s

request he scaled it back to fewer than 200. He also contends the project would preserve far more green space than most developments would set aside. “It’s a total of 73% green space.

graffiti on the occasional wall, debris in the overgrown courtyards. On the fifth floor, where Key Tower is visible through broken windowpanes, water stains some of the walls and pools around the base of thick support columns. Light streams into the space, where seamstresses and tailors once cut fabric and pieced together trousers, vests and coats. Public records don’t show what Ng paid for the property 11 years ago. His $3.5 million asking price is raising eyebrows, though, particularly in the middle of a pandemic that’s upending parts of the real estate industry and prompting some developers and lenders to pull back. The Cuyahoga County Fiscal Office estimates the value of the real estate at $451,000. That’s a ton,” he said. “I would challenge you to find one anywhere near that. … Multifamily is generally 15 to 25 units per acre, and our density is 2.6 (units per acre),” Petros said. If he gets the green light, Petros said he would begin work in the middle of next year. “We’d start next summer, and it would take two years before we were done. … If I started in June, I’d have units available by Christmas,” he said. Petros said he’s confident the city will approve his plans. He’ll begin to see if that plays out Friday, Nov. 20,

At least two developers have taken quiet runs at Richman in recent years. Cleveland Neighborhood Progress had a memorandum of understanding with Ng and worked through preliminary planning and analysis for a project, said Linda Warren, the nonprofit group’s senior vice president of placemaking and president of New Village Corp., its real estate subsidiary. Those talks involved low-income and market-rate housing, a charter school, nonprofit offices and other, creative uses. But the discussions stalled about two years ago, Warren said, when another, unidentified suitor popped up. “We were imagining it was a company,” she said. “I just might be naïve, but I really thought I could see some large company moving into that space and building it out. ... The top of that building, you can see the lake. It’s just exquisite. And the views of downtown, we thought it had some potential.” That mysterious buyer was Carnegie Management & Development Corp., a Westlake-based developer that tied up the site for a large, national tenant. But the plan was for demolition and new construction, not rehabilitation. Dr. Rustom Khouri, Carnegie’s president and CEO, confirmed that he had a contract to buy Richman. That deal dissolved this year, he said, when the tenant’s timeline changed. Carnegie isn’t likely to reconsider a purchase. “The most effective way to get value out of that property is to create an adaptive reuse of the existing facility,” said Khouri, who focuses on groundup projects. “If you are able to do that, then you have good value there.” Warren said the timing isn’t right for Cleveland Neighborhood Progress to jump back in. She hopes a preservation-minded buyer will emerge. Razing such a significant remnant of the city’s industrial past would be a tragedy, she said. “To me, it’s one of those projects where, if you lose it, you lose some of the architectural history of a city,” Warren said. “You change the complexion of a place.” Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe when the Akron Planning Commission hears from Segedy and gives the matter its first public hearing at 9 a.m. The event will be livestreamed for observers, and the city asks that those interested in participating in the video conference contact the city at agregg@akronohio.gov with their name, address, email and telephone number, as well as the address of the affected property at 1870 Akron-Peninsula Road. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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CRAIN’S CLEVELAND BUSINESS

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 ADVERTISING / MARKETING

LAW

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Falls

Meyers, Roman, Friedberg & Lewis

Meyers, Roman, Friedberg & Lewis

With an extensive professional background in both law and business, Nicholas C. York joins Meyers Roman as a Partner in the Business & Corporate Group. A successful entrepreneur in a broad portfolio of industries, Nick’s experience provides him with a unique perspective from which to counsel business clients. He has taken on leadership roles throughout his law career as well as board positions in industry, educational organizations and non-profits.

Joseph M. Saponaro joins the Real Estate Group at Meyers, Roman, Friedberg & Lewis as a Partner. Joe brings nearly two decades of legal experience and leadership managing complex regional and national real estate transactions including acquiring, selling, leasing, financing and developing commercial real estate at large national/ international law firms and as in-house counsel for a national real estate development firm.

Kevin Ament joins Falls as Senior Integrated Strategist from Progressive Insurance where he held a variety of leadership roles, most recently leading all marketing and communications for its independent agent business. Other notable roles include: VP of Brand Strategy and Editor-InChief at an Atlanta consulting firm, Davis Brand Capital; Supporting Panera Bread’s early national expansion; and high school literature teacher. Kevin earned his bachelor’s degree from the University of Missouri.

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PA G E 2 5

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

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9 miles to I-76

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Elios Financial

OFFERED INDIVIDUALLY Group OR TOGETHER

Having worked at both law firms and as in-house counsel, Joni Todd brings to the Litigation Group at Meyers, Roman, Friedberg & Lewis an extensive background representing retail companies, title insurance companies, lending institutions, corporate entities and individuals. Most recently, Joni served as Director of Litigation and Assistant General Counsel of a publicly traded company with more than 20,000 employees in the U.S., Canada and the U.K.

COMMERCIAL REAL ESTATE

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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 12 & 19 from 2-3:30PM EST OUT OF STATE INVESTOR ORDERS THE IMMEDIATE SALE! PARCEL 1:

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9 miles to I-76

Mark S. Abood: OH Auctioneer OH RE Salesperson

NEW GIG?

COMMERCIAL REAL ESTATE

AUCTION C O N TAC T

4100 Orange Pl, Orange Village, OH44122 Laura Picariello Inspection: Thursday, November 19 from 2-3:30PM EST Reprints Sales Manager OUT OF STATE INVESTOR ORDERS THE IMMEDIATE SALE! lpicariello@crain.com

32125 SOLON RD,(732) SOLON, OH 44139 723-0569

THE SOLON MARQUIS - 43,000± SF 26 | CRAIN’S CLEVELAND BUSINESS | November 16, 2020 CLASS A OFFICE BUILDING

HIGHLY PROMINENT & VISIBLE LOCATION!

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 Bidding to Commence at $1,500,000 rooms, + MUCH MORE! Access to I-480, I-271 and U.S. Route

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

CRANE CREEK, SR-44, SHALERSVILLE, OH 44255

Portage County Regional Airport

10% Buyer’s Premium

32125 SOLON RD, SOLON, OH 44139

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

PARCEL 2:

I-1 industrial zoned, flat, cleared land in Shalersville Twp., Portage County, OH

Elios Financial Group is proud to announce the promotion of www.colliers.com Ryan M. Dobroka to For Due Diligence Package HTTP://COLLIERSAUCTION.LISTINGLAB.COM/NOV24OHEAST Wealth Advisor and 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,his and dimensions are approximate. This offering may be withdrawn, modified, or canceled without notice at any time. Each property is subject congratulate to prior sale. This is not a solicitation or offering to residents of any state or jurisdiction where prohibited by law. successful passing of the CFP® examination. The Crain’sCFP™ Cleveland Business, 2x5, certification requires a Oct. 26, Nov. 2 vigorous process of candidates to satisfy educational and experience-based metrics in all aspects of financial planning. Preserve your career change for years to come. Ryan works with personal clients using a holistic view of wealth management to provide analysis Plaques • Crystal keepsakes and recommendation on Frames • Other Promotional retirement, investment, and tax NOVEMBER 24, 2020, 11AM | REGISTRATION AT 10AM ESTItems planning. Location: Drury Inn & Suites Cleveland Beachwood

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DeWees Real Estate Group DeWees Real Estate Group, a full-service commercial real estate firm, welcomes Regional Manager, Josh Zeiger, to their brokerage firm. Zeiger has over 14 years of experience in commercial real estate. Most recently, he worked as a commercial lender for several prominent banks in the Canton area. Prior to his career in commercial lending, Zeiger was a District Manager for Starbucks and managed 10 locations from Canton to Cleveland.

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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.

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CRAIN’S CLEVELAND LOOK BACK | NORTHEAST OHIO’S BIOTECH GROWTH

Nurturing Cleveland’s biotech ecosystem

crainscleveland.com

Though Northeast Ohio hospital and health care industry was well established, in the mid-1990s the region had very little in the way of a biotechnology industry. The area’s base of biomedical research didn’t have a clear local way to push discoveries down the path toward commercialization. Leaders came together to change that, ultimately establishing BioEnterprise, the nonprofit health care and bioscience business accelerator. Since it was founded by Cleveland Clinic, University Hospitals and Case Western Reserve University in 2002, BioEnterprise’s client companies have received more than $3 billion in funding. — Lydia Coutré

``THE HISTORY

``IN THEIR OWN WORDS

Though the region fostered plenty of great ideas, they were often taken elsewhere for further development. Mentor-based Steris Corp.,the sterilization and medical device company, was the exception to this pattern. In the 1980s, Bill Sanford helped launch, oversee and grow Steris into a global enterprise. He went on to be one of the founders of BioEnterprise, which has served as a neutral organization bringing together competing players from the region’s health care sector to collaborate. The creation of BioEnterprise was just one of many steps toward building the region’s biotechnology community. Cleveland Clinic Innovations, which works to turn the health system’s medical breakthrough inventions into products and companies, was founded in 2000 and has since launched more than 80 startup companies. Case Western Reserve University also put a bigger focus on turning their existing research into companies and products. And the Ohio Third Frontier Program, since it was created in 2002, has been funneling money into research efforts and tech companies across the state. The region has continued to leverage and grow the ecosystem it created to support biotechnology. The Harrington Project for Discovery & Development, launched in 2012, includes the Harrington Discovery Institute at University Hospitals and BioMotiv, a mission-aligned commercial development company. BioMotiv and the institute collaborate to support physician-scientists and accelerate the discovery and development of medical breakthroughs. In 2017, the Clinic created Cleveland Clinic Ventures to complement the work of its Innovations arm and make investments in emerging health care companies. University Hospitals launched UH Ventures in 2017 as a new arm to develop business models leveraging existing capabilities and develop new revenue for the organization.

“The institutions wanted to get together and work together. That was the first thing everybody was excited about, and they wanted to figure out could we build an industry? And there’s no cookbook at that point for building a biomedical industry, but we thought maybe we could do this.”

REPORTERS

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits. (216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter. (216) 771-5437 or michelle.jarboe@crain.com 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

GET MASTHEAD FROM LIBRARY

——Dorothy Banauch, founding president of the Edison BioTechnology Center (founded in 1987 and now known as BioOhio), said in a 2018 documentary, “Disruptors in Believeland”

“It’s really important to have science and technology advance to help humankind.” BioEnterprise’s client companies have received more than $3 billion in funding. The nonprofit, though, is being investigated for its spending practices. | FILE PHOTO

``WHY IT MATTERS TODAY BioEnterprise began cutting back operations this summer, citing operational and financial considerations during the pandemic and economic uncertainty. BioEnterprise president Aram Nerpouni and 14 other employees left at the end of May. The organization has faced investigations by Cuyahoga County regarding questionable spending in its management of the Global Center for Health Innovation. It ended its role managing the center last year. JumpStart Inc., a nonprofit that supports a range of entrepreneurs, is taking over a significant portion of BioEnterprise’s work as its future remains uncertain. The work of local institutions in recent decades has helped keep companies local and pave the path for several Northeast Ohio biotech suc-

cess stories seen in the past few years. When Cleveland biotechnology company Athersys Inc. first came to the region in the mid-1990s, its founders initially planned to move operations to California. But the burgeoning support for the industry and the ecosystem developed since then ultimately helped Athersys stay in Northeast Ohio. CardioInsight of Cleveland was acquired by Medtronic in 2015 in a deal valued at $93 million. That same year, IBM announced it had acquired Explorys Inc., a Cleveland Clinic spinoff. In 2017, Quest Diagnostics closed a deal to buy Cleveland HeartLab for $94 million. And after 25 years in Cleveland, Athersys is currently taking steps to be ready for possible commercialization in anticipation of potential approval of its MultiStem stem cell therapy.

ADVERTISING

——Bill Sanford, founder of Steris Corp. and co-founder of BioEnterprise, told Crain’s in 2010

“If we didn’t capture that innovation and nurture it with the additional capital, and entrepreneurship and support that we had as a community, then we weren’t capitalizing on assets that we were cultivating within our region. Effectively, we were planting all the right seeds, but we were letting the crop be harvested by others.” ——Baiju Shah, who led BioEnterprise from 2002 to 2012, said in the documentary, “Disruptors in Believeland”

THE WEEK PUBLIC DEBUT: Sotera Health, a Broadview Heights company that provides lab services to the medical device and pharmaceutical industries, plans to raise more than $1 billion in an initial public offering. The company plans to sell 46.6 million shares priced between $20 and $23 each, which, at the top of that range, would raise $1.07 billion and value the company at nearly $6.4 billion. Sotera plans to list on the Nasdaq stock market under the symbol “SHC.” The IPO is expected to price during the week of Nov. 16. NEW AND OLD: A local development team hopes to construct a 167-unit apartment building and a 130-room hotel at the western terminus of Cleveland’s Detroit-Superior Bridge, in a project that will blend ground-

Superior Viaduct, to a joint venture formed by Graham Veysey, Marika Shioiri-Clark and Michael Panzica. That $4.15 million land sale hasn’t occurred yet but is scheduled to close by March 31.

A 2-acre site at the western end of the Detroit-Superior Bridge is earmarked for a 167-unit apartment building and a 130-room hotel, as part of a project that will marry new construction with historic preservation. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

up construction with historic preservation. Documents submitted to the city offer an early look at Bridgeworks, a mixed-use redevelopment

of a 2-acre site owned by Cuyahoga County. The county last year agreed to sell the property, off West 25th Street between the bridge and the

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

ON THE DOUBLE: Park Place Technologies, a Mayfield Heights-based data center hardware maintenance company, made a deal that doubles the size of the company. It acquired Curvature Inc., an IT support, products and services company in Charlotte, N.C. Park Place said the acquisition makes it the world’s largest third-party data center maintenance company, adding about 4,500 customers to Park Place’s existing base of about 17,000, doubling the employee count to 2,300 and adding four more international markets.

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

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Crain’s Cleveland Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain President KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Editorial & Business Offices 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 (216) 522-1383 Volume 41, Number 42 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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