VOL. 40, NO. 26
JULY 1 - 7, 2019
Source Lunch
Akron
Doug Weintraub, CEO, Bounce Innovation Hub
The 797 Residence building is set to open in Middlebury Page 24
Page 27
The List
CLEVELAND BUSINESS
Employee Benefit Services Firms Page 23
FROM THE EDITOR
OHIO FARMING’S WASHOUT
I
in Wooster in a territory that ranges f you think you’re having a from Lake Erie to southern Ashland tough day at the office, considCounty. He talks to a lot of others er the life of the Ohio farmer. who sit in the tractor seat. This year, The early hours, the hard labor they all say, has been like no other. and the cruelties that can be in“There are some 80-year-old flicted by weather patterns and farmers who told me this is by far, trade policy. with no question, the worst year Medina County farmer Tyler Arthey’ve ever seen,” Arters said. ters told me he was driving a tractor Ohio and the other 17 corn-pro“as soon as I could reach the pedals.” Elizabeth ducing states in the Midwest and He still works the 1,200 acres of McIntyre the Great Plains have been inunhis family’s land in Chatham Towndated with heavy rains this spring that have ship with his father and brother. When Arters is not farming, he’s selling delayed or prevented plantings. How bad is it? John Deere equipment for Ag-Pro Companies Domestic plantings by mid-June were at the
slowest pace in more than 40 years, according to a U.S. Department of Agriculture report. Ohio has been particularly hard hit by the extreme weather and has lagged behind every corn- and soybean-growing state in the country the entire planting season, said Ty Higgins, spokesman for the Ohio Farm Bureau. “You ask someone’s dad or grandpa who’s been on that farm for 50, 60 years if they’ve seen anything like this and they’ll say not even close. It’s unprecedented,” he said. This isn’t idle chatter with Grandpa about the weather. It’s not a curious fact to be logged into the almanac and forgotten. This is a natural disaster that came a few inches at
a time and now presents an existential threat to those who feed us. Agriculture is one of Ohio’s major industries, contributing more than $10 billion to the state’s economy annually, with the vast majority coming from corn and soybean crops. No area of Ohio has been harder hit than the northwest part of the state. I recently drove to Detroit and was shocked seeing the underwater fields along the Ohio Turnpike in Ottawa, Wood and Lucas counties. Fields that should be knee-high by the Fourth of July with corn were knee-deep in water or weeds. SEE MCINTYRE, PAGE 25
Ohio farmers traditionally plant in April or early May. Heavy, persistent rain this year has delayed planting into June, if at all. (Ohio Farm Bureau)
REAL ESTATE
GOVERNMENT
Columbus-based developers join fray
HIMSS departure opens a gap at Global Center
Cleveland-area demand for housing options finally lures firms north By Stan Bullard
The sight is becoming alwood to Pepper Pike. most commonplace as “We see a need in all the multifamily real estate demetro areas of Ohio for new sbullard@crain.com velopment continues to housing options,” said Kol@CrainRltyWriter pick up in the region. Howby Turnock, a vice president of Casto’s Casto ComConstruction workers have ever, the $18 million-plus munities unit, in a June 25 scraped down to the dirt on the project in Ohio City is Cophone interview. “In northwest corner of Cleveland’s lumbus-based Casto’s first (Ohio’s) vibrant urban Franklin Circle. With a massive undertaking in Cleveland. neighborhoods there is a crane, they are pounding in metal Casto is also one of four Turnock lot of pent-up demand, but bulkheads to form part of the foun- companies from the state dation for a 116-suite apartment capital that have projects taking not a lot of new product. We’ve covshape in Northeast Ohio, from Lake- ered the spectrum of multifamily debuilding that will rise five floors. velopment (in Columbus), including infill development, where we’ve had Entire contents © 2019 by Crain Communications Inc. some success. The new waves of millennials and empty-nesters interested in city neighborhoods have driven our focus to areas with those characteristics.” The appearance of the Columbus crowd is notable because the relative proximity of the two big cities should have made Cleveland a target long ago. SEE COLUMBUS, PAGE 25
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By Jay Miller jmiller@crain.com @millerjh
With the departure of the Healthcare Information and Management Systems Society (HIMSS) Innovation and Conference Center, its lead tenant, the building that once was called the Medical Mart and now is the Global Center for Health Innovation remains a work in progress six years after its opening. On June 25, Crain’s reported that the Chicago-based health information nonprofit would wind down its operations at the Global Center over the next six to 12 months. Landing HIMSS had been a major win for the Cuyahoga County-owned building. It has been the building’s largest tenant, occupying 22,700 square feet there since the building opened in 2013, and in
October 2018 it signed a three-year extension of its lease. HIMSS promoted its Innovation Center as the only testing, exhibition and conference facility to offer real-time demonstrations of the latest in health care technologies. Among the several dozen firms that showcased products there were local companies such as Hyland Software Inc. and MCPc Inc., as well as international companies including CDW Healthcare, Dell Technologies Inc. and Fujitsu Ltd. Karen Groppe, HIMSS senior director of strategic communications, told Crain’s that the organization still will have a presence in Cleveland. “We’re still going to be in Cleveland. We’re not abandoning Cleveland,” she said. “We’re beginning to phase out the Innovation Center we have in Cleveland.” SEE HIMSS, PAGE 26
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Lead-safe law would be costly for landlords By Jay Miller jmiller@crain.com @millerjh
Legislation moving through Cleveland City Council to require Cleveland landlords to ensure all rental units built before 1978 are certified as lead-safe is, not surprisingly, getting a mixed response from landlords, who will shoulder much of the burden to meet its terms. The law is designed to reduce the hazards of lead paint to the health of young children and includes new costs for landlords. City Council has been working since early this year with a newly formed group, the Lead Safe Cleveland Coalition, to craft the legislation. The coalition was created in January 2019 to significantly reduce the number of Cleveland children with lead in their bloodstream. The group includes hospitals, foundations and other civic groups, including United Way of Greater Cleveland. It put together a package of 33 recommendation to City Council, many of which went into the legislation. Legislation of this type may eventually move to Cleveland’s inner-ring suburbs, where much of the housing stock was built before 1978. Scott Kroehle, who owns and manages 16 rental units on Cleveland’s West Side, participated in the Lead Safe coalition meetings, supports the lead-safe initiative and plans to help flesh out the legislation. “I think we’re going to have a lot of work cut out for us, to figure out how
Cleveland City Council is considering legislation to require landlords to ensure all rental units built before 1978 are certified as lead-safe. (Doug Cannell/Getty Images)
to do it,” he said. “Some of the concerns landlords have about cost are valid.” With little appreciation in the valuations of Cleveland residential property and low rental rates, repair costs can strain landlords financially. Seth Task, a rental property owner, supports the principle behind the legislation, if not every word in it. “We absolutely have to work towards lead-safe housing in Northeast Ohio,” said Task, who is treasurer of Ohio Realtors Inc. and is affiliated with Berkshire Hathaway Home Services. “It’s unfortunate it’s taken so long.” A key part of the legislation would require that all residential units in the city built before 1978 be certified
by a third-party inspector as “leadsafe,” meaning the housing unit is free of peeling paint inside and outside and free of lead dust, which can be created when painted doors and windows are opened and closed. Lead-based paint was banned by federal law in 1978. The costs include an inspection of each rental unit, which could run upward from $250, and an increase — from $35 to $70 — in the fee landlords pay to the city to register rental units. At the same time, the Lead Safe coalition has pledged to create a “Lead Safe Home Fund” that will offer landlords loans or grants to help cover the cost of making rental housing safe for children.
Lead poisoning is considered a significant environmental health threat by the medical community, particularly for low-income and minority children. Research has found that exposure to even small amounts of lead can lead to permanent learning and behavior problems, hypertension, osteoporosis and kidney disease. Lead-based paints, which still can be found peeling inside and outside homes, and lead dust are considered primary sources of lead contamination, though lead also is found in water and some consumer products. At a meeting of Cleveland City Council’s Health and Human Services committee, held June 21 in conjunction with a conference organized by United Way of Greater Cleveland and the Lead Safe coalition, Cleveland’s director of building and housing, Ayonna Blue Donald, told committee members that about 90% of Cleveland’s housing was built before 1978 and the city has 13,000 rental housing units that may be hazardous to children. The legislation still must be heard by at least one more council committee. Because council meets only monthly over the summer, passage is not expected until August or September. In the meantime, Councilman Blaine Griffin, the committee chairman, said he and other council members will continue to talk to landlords and community groups to refine the legislation. “We have had significant outreach to property owners and to the Realtors,” he said. “My colleague Councilman (Anthony) Brancatelli (who
chairs the development, planning and sustainability committee) is also holding another hearing on July 23. We’ve tried to make sure we’ve reached out to everybody.” Griffin said the legislation was originally to go into effect in March 2020, but landlords convinced him to move back implementation by a year. The legislation would require the owners of all residential rental units in the city constructed before Jan. 1, 1978, to provide the building and housing department with one of two types of certification — what the industry calls a “lead clearance examination report” or a “lead-risk assessment”— as evidence that no lead hazards were identified in the unit. That will require an inspection by a licensed inspector and, if necessary, remediation by a certified lead contractor. The program would begin March 1, 2021, and all units would need to be certified by March 1, 2023. “I think the legislation is a great start and now it needs to be implemented; the key is implementation,” said Kevin Nowak, executive director of CHN Housing Partners, which develops and manages affordable housing. “Our market, which oftentimes has artificially low rents, makes it difficult to finance improvements, so in order for us to effect these outcomes we need alternative ways to finance them. It could be grants or low-cost loans. It requires us to come up with creative solutions.” CHN manages about 250 pre-1978 units in Cleveland and all have been inspected and certified as lead-safe. SEE LEAD, PAGE 5
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Cleveland is ready for its All-Star closeup By Kevin Kleps
munities that compete for major sports events. The Ohio Senate’s state budget bill includes $5 million for sports events grants. That amount, should it get the necessary approvals, would cover the remaining funds needed for the last two events (the 2022 NBA AllStar Game and 2024 Women’s Final Four), Gilbert said. “We’ve made really good progress on a lot of stuff,” the sports commission president and CEO said. Also crucial, Gilbert added, is keeping expenses in line. “We estimate what we believe the community obligations are. Some are very firm. Others are good estimates,” he said.
kkleps@crain.com @KevinKleps
The MLB All-Star Game on July 9 will produce a packed house at Progressive Field and give Cleveland another chance to showcase itself before a national audience. The Home Run Derby on July 8 promises to be fun, and J.R. Smith playing in the celebrity softball game the day before seems promising. But it’s other, less-celebrated events that best exemplify what the Greater Cleveland Sports Commission is hoping to do during the region’s historic run of landing big-time sports events. On July 8, the FirstEnergy Foundation is giving 1,000 kids the chance to attend Play Ball Park — the massive fan festival at the Huntington Convention Center of Cleveland. The group will be admitted free, receive a boxed lunch and take home a T-shirt from the Cleveland Baseball Day event. Four days later, Billy Bean, the only openly gay current or former major-leaguer, will talk about building respect and acceptance in the workplace. The event, which is sold out, will be part of an annual speaker series at the City Club of Cleveland that will focus on diversity in sports. “There are things we’re looking to do with this in terms of high-level community engagement,” said David Gilbert, the sports commission’s president and CEO. “That’s already started and is coming together very well. It will be spread across all five years. These are the kinds of things
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The MLB All-Star Game is expected to produce a string of sold-out nights for hotels such as the Hilton Cleveland Downtown. (David Kordalski)
that keep these events coming back to Cleveland. It makes this event more meaningful.” Such initiatives are replicable, which is noteworthy because the MLB All-Star festivities have some company on the region’s schedule of major events. The NFL draft, a first for Cleveland, will follow in 2021, and Rocket Mortgage FieldHouse will host the NBA All-Star Game and NCAA Women’s Final Four in 2022 and ’24, respectively.
Fundraising goal in reach The four events are projected to have a combined economic impact in the $285 million to $315 million range. Gilbert has estimated that the cost
to host the quartet will be about $14.5 million. The sports commission and its team of leaders from the business community are hoping to raise $5.5 million of that. The effort, dubbed Velocity, is already about 85% of the way toward its goal and should be at or near the benchmark by the end of the year, Gilbert said. Destination Cleveland, the region’s convention and visitors bureau, is contributing about $1.8 million, via funds that its board of trustees has set aside for big-time events, and $1 million will come from the donation of facilities and services. The remaining $6.2 million is expected to come from a law, passed late last year, that increases the amount of financial incentives available to com-
Breaking through ‘the noise’ While economic impact numbers are often questioned by economists, a quality indicator of an event’s success is the out-of-town visitors it produces. The MLB All-Star Game is tracking well in that regard, with Teri Agosta, the general manager of the 600-room Hilton Cleveland Downtown, recently telling Crain’s that the city’s hotel market is sold out for the baseball showcase. Gilbert said the Midsummer Classic should produce 40,000 to 50,000 room nights at local hotels — at rates that are considerably higher than a typical weekday or weekend in July. The Republican National Convention, for example, helped to produce an average daily room rate of $188.40 for the then-7,054-room ClevelandIndependence hotel market in July 2016. The daily norm was 53.3%
ahead of the $122.92 average for July 2015, according to STR, and still well ahead of the respective $133.40 and $142.82 norms for July 2017 and ’18. “That’s really significant revenue,” Gilbert said of the combination of a sold-out hotel market and pumpedup room rates for All-Star week. The MLB All-Star festivities are also expected to bring more than 2,000 members of the media to downtown Cleveland. Fox Sports, which will broadcast the July 9 game between the American League and National League, will have “hundreds” in town for the event, a company spokesperson said. Brad Zager, Fox Sports’ executive vice president of production and operations, told Crain’s that the network, in addition to celebrating baseball, makes a point of showing off the host city. “We feel that sharing what makes each individual city unique — whether that’s a short feature or sweeping visuals of the area — is also important for our viewers to feel directly connected to the event,” Zager said. Glamour shots were a June tradition for Cleveland the previous four years, when the Cavs made annual runs to the NBA Finals. You could say the head of Destination Cleveland and the sports commission is looking forward to the buzz. “That’s another piece of it,” Gilbert said. “These are the kinds of events, for a city like Cleveland that needs to work really hard to shore up its national narrative, these are the rare opportunities to break through the noise and clutter.”
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CRAIN’S CLEVELAND BUSINESS
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Congress is considering proposals — one of which is co-sponsored by U.S. Sen. Sherrod Brown, D-Cleveland — to act to protect small businesses from predatory lenders who seize their assets without warning using a legal instrument called a confession of judgment. “By ending confessions of judgment in commercial lending, we can stop some of the abuses that are crippling honest small business owners,” said U.S. Rep. Nydia Velazquez, a Democrat from New York, at a House Small Business Committee hearing in Washington, D.C., on Wednesday, June 26. “I find it appalling that New York state law has made our state a magnet for dishonest lenders.” Velazquez, chairwoman of the committee, and Roger Marshall, a Republican from Kansas, have introduced a bill in the House that would ban confessions of judgment in business loans. Brown and Florida Republican Marco Rubio have made a similar proposal in the Senate. On June 25, Brown said in a tweet that the Small Business Lending Fairness Act that he and Rubio have reintroduced "would codify the FTC’s 1985 ban on confessions of judgment in law in consumer loan contracts." Bloomberg News articles last year highlighted abuses by unregulated companies offering a form of financing called a merchant cash advance that can cost as much as 400% annualized. Some lenders require customers to sign such confessions to get loans. By signing, borrowers forfeit their right to defend themselves in court. In recent years, lenders have used confessions to win more than 32,000 judgments in New York courts, mostly against small, out-of-state businesses.
U.S. Sen. Sherrod Brown, D-Cleveland, is shown here during a Senate Finance Committee hearing in March. (Anna Moneymaker/Bloomberg)
Armed with a confession, lenders can accuse borrowers of not paying and legally seize their assets before they know what’s happened. The Bloomberg articles described forged or materially altered confessions falsely accusing borrowers of missing payments and overstating the balance due. “My clients are very good at what they do. They know how to fix a boat. They know how to install a sink,” said Shane Heskin, a lawyer at White & Williams LLP in Philadelphia who represents small business borrowers. “But that doesn’t mean they know how to read a contract in 8-point font. It doesn’t mean they know the legal ramifications of signing a confession of judgment.” Federal regulators banned the use of confessions for consumer loans in 1985. The proposed Small Business Lending Fairness Act would extend the ban to commercial transactions. Last week, New York lawmakers approved a bill that prohibits the use of confessions of judgment against individuals and businesses located outside of the state. Some other
states, including Pennsylvania and California, allow confessions but have more protections for borrowers. Hosea Harvey, a law professor at Temple University, said the line between consumers and small businesses has blurred. Many freelancers, such as car-service drivers, are classified as business owners. Congress should consider extending consumer protections, such as a ban on confessions, to apply to small businesses, he said. “Contractual provisions that deny due process can punish small businesses and serve no compelling purpose,” Harvey said. “The proposed solution is neither partisan nor anti-business.” Jerry Bush, a plumbing contractor from Roanoke, Va., who was interviewed for one of the Bloomberg News articles, also testified at the House hearing. He described how he attempted suicide after he lost his business to predatory lenders and said he didn’t understand the consequences of signing a confession. “Nobody explained what all they could do if they want to,” Bush said.
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Xellia plans to move drug production to Bedford By Kim Palmer kpalmer@crain.com
Copenhagen-based Xellia Pharmaceuticals plans to move production of drugs used to treat critically ill patients from a North Carolina manufacturing facility to the former Ben Venue Laboratories site in Bedford. Xellia, which employs about 1,600 people in Europe, Asia and the United States, specializes in the production of anti-infective drugs used by hospitals in the treatment of life-threatening bacterial and fungal infections. Ben Venue Laboratories, bought by the German pharmaceutical company Boehringer Ingelheim in 1997, was the suburb’s largest employer before drug production ceased in 2013 and more than 1,000 employees lost their jobs. The company, which had been in Bedford since 1941, was under increasing federal and international scrutiny for several quality control issues dating back to 2011. Xellia took over the former Ohio drug manufacturing facility in 2015 after receiving a tax credit under Ohio’s Job Creation Tax Credit program. The Danish company bought the Ohio property as part of an expansion of its North American presence, which included establishing commercial headquarters in the Chicago area last year. Xellia representatives would not comment on the exact amount in-
vested to redevelop the facility, but did say the company “expects to continue to grow and expand production capabilities at the Bedford site to match its growing portfolio of products.” The company has, to date, only used the Bedford location as a packaging and distribution hub. Bedford Mayor Stan Koci, who began his term the same week Ben Venue closed its doors, welcomes the international company’s expansion at the site that once was responsible for one-fifth of the city’s revenue. “It has been huge for what it means to our small community,” Koci said. A spokeswoman for Xellia said the company also will add employees in multiple areas including manufacturing, maintenance mechanics, supply chain, distribution, quality and engi-
Copenhagenbased Xellia Pharmaceuticals will begin producing drugs in the former Ben Venue labs in Bedford. (Contributed photo)
neering, but would not commit to an exact number. The Bedford site currently has about 200 employees. The pharmaceutical company also announced the Bedford laboratory will begin manufacturing two intravenous antibiotics — Vancomycin and Daptomycin — in partnership
with Civica Rx, a hospital-affiliated, not-for-profit company. Civica, according to a statement about the collaboration, will distribute two generic antibiotics, produced at the Bedford facility, to the group’s 800 member hospitals as part of a long-term plan that will eventually
include a dozen more generic drugs. According to a Civica statement, the two generic antibiotics belong to a class of lifesaving drugs prone to severe shortages resulting from a combination of pharmaceutical consolidation, frequent manufacturing problems and an uptick in demand because of an increase in natural disasters. “These drugs are in short supply,” Koci said of the company bringing jobs back to his city. ”They (Xellia) want to be successful and we all have the same goal in mind.” If the company receives final U.S. Food and Drug Administration approval process this year, as expected, manufacturing operations will commence with full-scale commercial production beginning sometime in 2020.
LEAD
CONTINUED FROM PAGE 2
The Lead Safe coalition is working to create a public-private “Lead Safe Home Fund,” to help landlords and homeowners who lack the resources to make homes lead-safe. “This will require investments from all sectors, and we will leave no stone unturned in finding the resources to make it happen,” the coalition said in its report to council. “We’re doing our best to bring resources to the table,” emphasized Mark McDermott, chair of the coalition’s policy committee and vice president and Ohio market leader for Enterprise Community Partners Inc., a nonprofit that develops affordable housing. “It’s the intention of the coalition to raise dollars to have grants to help pay for part of the testing (landlords) will have to get done.” Benjamin Rosolowski, who has about a dozen occupied pre-1978 units in Cleveland, said he believes landlords are being unfairly targeted by the new legislation. “Why are we putting this on the backs of landlords?” he asked. “Council is using this (heightened concern) as a money grab” by doubling the rental unit registration fee. Rosolowski, an engineer and member of the Association of Energy Engineers, said that children can be exposed to lead dust or particles from water lines and at daycare centers, schools and anywhere they travel. “You see how many different sources of lead these kids tested for lead (are exposed to)?” he said. “What was the source? We need to do more investigation and understanding of this before we turn around and create big government.” Rosolowski also questioned why owner-occupied housing is not covered by the legislation. Task, the Realtor association treasurer, also is concerned about the expense. “If this passes I’m going to start a lead inspection company,” he said. “I’ll make a lot of money.”
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Carver Financial invests in human capital By Jeremy Nobile jnobile@crain.com @JeremyNobile
As the financial planning industry increasingly embraces new technology, particularly more automated services like robo-advising, count Randy Carver among the holdouts more interested in human capital than software and computer-generated algorithms, despite the scale and efficiencies those could offer. While robo-advising, and the broader fintech sector in general, are disrupting the modern wealth management business — according to a report by Statista, global assets under management (AUM) by robo-advisers has surpassed $980 million in 2019 with a projected compound annual growth rate of 27% through 2023 — the founder and president of Carver Financial Services (a top-producing branch of Raymond James Financial Services) is seeing plenty of growth with a business model exclusively focused on human advisers. With annualized revenue growth of 14% over the past decade, and a series of accolades from Barron’s, Forbes and the Financial Times, he must be doing something right. “I think I’ve agreed with the trends,” Carver said, “but I’ve not been worried about them because we’re different.” Today, Carver’s business is building out the latest addition to its Mentor headquarters, which will practically double it to 21,000 square feet. There are some two-dozen employ-
“I don’t doubt that you can do a lot of things with automation, but there will always be people who want to talk to a person.” — Randy Carver, founder and president of Carver Financial Services
ees there today and potential for adding more. The surrounding investment, and that new space, adds more room for advisers to meet with clients in person. “The trend in the industry is to move toward automation,” Carver said. “Major brokerage firms, including Raymond James, are looking for
various robo-solutions, if you will, whereas I believe there is something to be said for personal contact. As that becomes more prevalent, having that face-to-face, actually talking to a person, that becomes a positive differentiator as a value-add.” From more niche services to lower-cost options, tech-enabled services removing human interaction from financial planning may appeal more to a smartphone-loving millennial crowd that companies like Wealthfront and Betterment tend to attract and that many advisers want in their ranks as wealth passes through generations. But 55-year-old Carver — who lost part of his lungs and spleen to cancer as a teenager and has since survived a plane crash and a heart attack — doesn’t even have a voicemail system at his office. He detests the automated prompts. “I don’t doubt that you can do a lot of things with automation,” Carver allowed, “but there will always be people who want to talk to a person.” Carver’s firm advises on more than $1.5 billion in assets today, with much of that money rolled over from retirement plans. There’s a flat fee charged on accounts and no commissions. Every adviser, including Carver himself, earns a salary. Profits at the end of the year are divvied out equally, if not otherwise invested back into a retreat for clients. Carver Financial clients don’t belong to any specific advisers, but to the company overall. Its business model calls for building a unique investment strategy or-
ganically on a case-by-case basis for each customer. The firm doesn’t have any discretion over the assets themselves. There are zero algorithms or predetermined fund mixes offered. It’s less efficient than having models to plug clients into, but Carver doesn’t care about that. “We want to create an experience to make people happy,” he said. “And that has nothing to do with investing or investments.” Although he’s certainly not the only financial planner running that kind of strategy, it’s an increasingly rare focus as many firms look to technology to trim costs or add new services. And with stellar growth in assets and revenue, Carver sees little reason to divert from his chosen path. There is some indication that robo-advisers could see a loss of business in the coming years when the market inevitably turns down. Those advisers, which have come to prominence in recent years as the markets have enjoyed a steady expansion, have generally performed well by putting investors in high-performing, low-cost exchange-traded funds (ETFs). Betterment, specifically, has acknowledged that a prolonged stock decline could drive people away from automated services. That could mean more business for traditional financial planners, a trend that could further support groups like Carver’s if clients opt for customized advice offered by actual humans. It’s a much different strategy than larger wealth managers and financial
advisers gaining breadth and depth through acquisitions, such as the comparable operation of Stratos Wealth Network. That large network of companies and registered investment advisers includes Beachwood subsidiaries Stratos Wealth Advisors and Stratos Wealth Partners. The latter is a hybrid RIA and Super OSJ (office of supervisory jurisdiction) that’s part of the LPL Financial broker-dealer network. The company hired a new president in Fidelity veteran Lou Camacho last summer to accelerate its rollup of other firms. Stratos CEO Jeff Concepcion told RIABiz last fall the firm intends to pursue “multiple acquisitions annually” and has built up a war chest to do just that as the company looks to a previously stated goal of growing total client assets to $20 billion by 2021. Carver is obviously much smaller as a financial planner and running a different business. Yet both companies, facing potential disruption from fintech-driven services like robo-advising, are looking to manage that — just in different ways. Carver said his company is growing at a meaningful clip without pursuing acquisitions or a heavy focus on tech. That’s less efficient than a tech-enabled strategy, but still resonates with a significant piece of the market. Carver expects that to continue. “We’re not trying to get bigger,” he said. “We like being a smaller, concierge practice. And there is no way we would’ve had the success we have today without the whole team.”
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Crain’s Health Care Heroes is the celebratory portion of Crain’s Health Care Summit. These awards will recognize those who are providing exceptional service and dedication to Northeast Ohio’s health care sector.
• Nurse • Physician/Dentist • Allied Health • Volunteer • Public Health • Workplace Wellness • Innovation • Trustee/Board Member
HEROES
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Generator Works bundles health care startups By Lydia Coutré lcoutre@crain.com @LydiaCoutre
As serial entrepreneur Blake Squires was selling one of his pioneering companies, DoctorsOrders, to a major medical device supplier in 2018, he was already looking toward his next endeavor. That same year, the Northeast Ohio native teamed up with Joel Tompkins and Dr. Brian Woods to form Generator Works, an Akron portfolio of seven companies, all in the health care space. Squires already had experience in the industry: He founded population health solution Movable, which was acquired by DHS Group in 2015, and DoctorsOrders, which brought electronic order entry to the durable medical equipment space. Considering the region’s resources, continuing his entrepreneurship in the health care industry just made sense, Squires said.
Squires
Tompkins
“Besides wanting to really, truly change outcomes for people, when you think about an industry like health care, there’s a lot of talent and people in this region in our back yard that are into it,” he said. “So it was a) a logical evolution from those other two companies, but then b) you know, if I’m going to invest my capital and time into something, I want to pick an industry that’s really embraced by our region. And health care is.” Squires, Tompkins and Woods are all invested in and operate six companies day to day: OnPoint Diagnostics,
RelyOn Health, GetOn Health, MedXKiosk, Aimable Health and DoctorsOrders (though DoctorsOrders exited, it remains a Generator Works entity for product support while an undisclosed major medical supplier owns the asset). The three have invested in a seventh company, PhyTech, in which they are operationally involved but don’t operate it day to day. All but Aimable are software health care solutions. And all the companies in the portfolio complement one another quite well, Tompkins said. Synergies between the companies “help us to be able to kind of manage our time and get them all up and running at the same time,” he said. Across all seven entities, each of which is its own operating company, there are roughly a dozen employed staff members, plus more contracted workers to help scale up teams as needed and bring in the right developers for whatever the task may be. The goal, Squires said, is to stay nimble. “We’re investing capital into these
companies, but rather than invest in just one entity, we share the resources and we invest across these entities,” he explained. “So our thesis is not all startups succeed. So if we hedge our bets and we have multiple platforms under our watch, then one or more have a chance to grow and succeed.” So far, Squires, Tompkins and Woods are the sole investors in most of these companies. Only RelyOn has drawn capital investment (Generator Works is not disclosing the amount). RelyOn “brings consumerism to health care” by telling patients up front what they will pay, Squires said. The company currently has about a half dozen clients and is talking to a large hospital system. Within the next 45 days or so, Squires said they plan to launch a round of investment. Generator Works doesn’t have immediate plans to look for outside funding for the remaining companies. “They’re all tracking and trending well and starting to get into revenue
generation," Squires said, "so hopefully we can just keep building it more in like a bootstrapped, you know, organic nature. But it’s possible to raise external capital." For now, the team is focused on growing the companies they already have in the Generator Works portfolio. Squires said he measures their success by creating jobs for the region, building up staffing and, ultimately, exiting the businesses. “As you can see from my background, (I’ve) founded and built and exited quite a few companies,” he said. “I like to get it to a certain point and then find a better home and/or better leadership for the businesses. So that’s success. Some of these, like RelyOn, we’re really on a mission to improve health care, to bring consumerism to health care. And so success doesn’t need to be in an exit. If we’re changing lives and helping patients and it’s a thriving business, we may decide to hold on to it and continue to run it.”
THE COMPANIES: 1. Within a 45-minute period of time, a nasal swab can be tested for a range of bugs, such as the flu. In partnership with a Texas company, OnPoint Diagnostics offers the ability to distribute such hardware. It also brings to the table clinical trials and studies that will help push the technology into the marketplace.
2. RelyOn Health is a patient transparency and pricing tool that allows physicians and patients to understand costs prior to the date of service and even at the time the service is scheduled. This has become incredibly important, Joel Tompkins said, as patients' exposure to health care costs has skyrocketed.
3. GetOn Health is a telehealth platform that’s been deployed in Canada, where there are pilots ongoing in some large family and internal medicine practices. It’s a phone-based application physicians can use to schedule and follow up with patients who would otherwise have to drive hours to see their doctor.
4. MedXKiosk is a tablet-based kiosk solution that allows for a range of things, from patient registration to durable medical equipment ordering. It will allow the patient to look at durable medical equipment options before walking into the office, then help make the process of ordering such equipment go more smoothly.
5. The only nonsoftware solution within Generator Works, Aimable Health is a digital marketing entity that does marketing for its sister companies as well as for its own book of clients outside of Generator Works.
6. For pharmacy orders, doctors have computerized physician order entry, which allows them to send treatment instructions — such as medication, laboratory and radiology orders — via computer. DoctorsOrders essentially mimics this capability for the durable medical equipment industry.
7. Though Generator Works doesn’t operate the day-to-day operations of PhyTech, a medical billing company, the team has made an investment and is operationally involved. The target market for PhyTech is physicians.
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Opinion Personal View
Finding safety and happiness in Cuyahoga County By James M. Trutko
Editorial
Stay strong Cuyahoga County is counting on outsiders to help pay for upgrades to the big-ticket items we’re committed to but struggle to pay for. The county last week proposed raising the bed tax on hotel stays from 5.5% to 6.5%, beginning in January. If approved, the increase would generate an additional $4.6 million per year. (The tax produced $25.9 million in 2018.) As Crain’s government reporter Jay Miller wrote that the additional money would be used to pay for and operate the Huntington Convention Center of Cleveland and the Global Center for Health Innovation; to create a fund for capital improvements at Rocket Mortgage FieldHouse and for future improvements at Progressive Field; and to fund the Rock & Roll Hall of Fame, primarily to support Hall of Fame induction ceremonies held in Cleveland every other year. It also would restore some funding to Destination Cleveland, a highly effective force in bringing big events to town and improving the tourism climate. The county is on the hook for improvements to the sports facilities, according to its leases, and sin taxes to pay for capital improvements no longer are keeping pace. As far as these things go, the bed tax increase is a decent option. The financial commitments for these facilities are real, and this beats placing a further tax burden on county residents. As Destination Cleveland CEO David Gilbert noted, more than 95% of the bed tax is paid by visitors from outside Cuyahoga County. The hike would put Cuyahoga County’s bed tax considerably above the rates in surrounding counties. Guests don’t generally make decisions about where to stay based on bed taxes, but it’s worth looking closely at the impact of the hike on hotels, particularly in suburban areas, and whether a phased-in increase might mitigate any loss of business for them. The county, with Cleveland as its main attraction, has made big strides as a destination for visitors. Let’s make sure paying for improvements to attractions doesn’t hurt the places those visitors stay.
Status quo
A big U.S. Supreme Court decision last week has immediate ramifications for Ohio, and for the confidence (or lack of it) voters have in the fairness of elections. The court ruled it has no constitutional authority to throw out state voting maps for being too partisan. As a result, state legislatures effectively are free to draw districts to maximize the majority party’s political advantages. The 5-4 decision divided along ideological lines, with Republican-appointed justices in the affirmative. It upheld disputed congressional maps drawn by Maryland Democrats and North Carolina Republicans, “while dooming similar challenges being pressed against Republican-made maps in Ohio and Michigan,” Bloomberg noted. Gerrymandering historically is a bipartisan debasement of democracy, though of late, Republicans are the more frequent beneficiaries, since victories in 2010 let them draw many of the current state maps. The Supreme Court’s decision means Ohio voters likely will go to the polls next year in an election with the gerrymandered congressional map in place since 2012. A three-judge federal panel had ruled that Ohio’s congressional map is unconstitutional and ordered the drawing of a new one for 2020. The Supreme Court, though, put that order on hold as it worked to resolve the North Carolina and Maryland cases; Ohio’s case now is expected to be dismissed. Ohio voters in 2018 passed a ballot measure overhauling how the state draws congressional districts. The process outlined is an improvement, but it still leaves significant power in the hands of the majority party in the Legislature. As Ohio Speaker Larry Householder said in the wake of the Supreme Court’s decision, “This is not a question for the court but a political question that is properly left to the states.” Of late, though, there’s little reason to expect the state is capable of introducing real balance to the drawing of Ohio’s political map.
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The Fourth of July is a time when we celebrate one of the great documents of human history: the Declaration of Independence. In just 1,458 words, the document defines man’s fundamental rights and the nature of legitimate government. We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. — The Declaration of Independence Most people are familiar with the famous line in the Declaration of Independence that reads all men are created equal and endowed with unalienable rights to “Life, Liberty and the pursuit of Happiness.” Many readers probably skim over the balance of the paragraph, which describes government as the means to secure man’s God-given rights and derives the “just powers of government from the consent of the governed.” At the end of the paragraph, the Declaration of Independence declares the right of people to create a new form of government to “effect their Safety and Happiness.” “Safety and Happiness” is a wonderfully simple formulation of the goals of government in terms that everyone can understand. One doesn’t need to have a doctorate or understand the nuances of various economic and social policies to understand the Declaration of Independence said the purpose of government was to create safe conditions for individuals to freely pursue their own personal goals, the things that would make them happy. While we tend to think of the Declaration of Independence in a national context, local governments can also be judged in terms of their effectiveness in promoting two simple metrics: “Safety and Happiness.” Let’s evaluate the county government according to these criteria. Has the government of Cuyahoga County created safe conditions that allow our entire community to freely pursue our individual goals of happiness? Or are large areas of Cuyahoga County largely off-limits to productive activity because they are unsafe? Has the government of Cuyahoga County provided public services at reasonable cost and created an environment that fosters the growth of businesses and allows all persons to pursue economic opportunity, good-paying jobs and their dreams of happiness? Or have local government officials — like the king of England — run government primarily for the benefit of themselves, bureaucrats and employees with little regard for the services they provide to the public? An honest assessment of Cuyahoga County government is that it has failed to “effect the Safety and Happiness” of county residents. Ten years ago, voters attempted to reform county government and were partially successful. At the time, it was thought that eliminating corruption at the top and focusing accountability in a single chief executive, with county council oversight, would lead to honest and more effective government. However, the reforms did not restore accountability or lead to competent leadership because the subsequent elections were noncompetitive. Moreover, the reforms did not eliminate corruption because large sums of money continue to be hidden in a bureaucratic labyrinth out of public view. SEE TRUTKO, PAGE 9
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.
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Letters to the Editor Schools that support protesters will pay dearly I suspect the “chilling effect” argument concerning the First Amendment rights of college students that is being made by Oberlin College, as described in your recent article: “Oberlin verdict could have ‘chilling effect’ on college free-speech policies,” will not hold sway in appellate courts. The reason: There apparently is ample evidence that Oberlin College enabled this student protest. In my day, when we protested the Vietnam War, not a school on Earth would help us. To organize, we had to meet off campus. We paid for our own printing. And the idea of a college administrator babysitting our protest, which appears to be Oberlin College’s claim, is ludicrous. Other accounts state that the school provided free copy services to produce their flier, which condemned a small business of racism; provided mittens to the protesters outside in January; that course credit was given for protesting; and the dean of students was out there with the students marshaling them along with a megaphone. This is the claim of Gibson’s Bakery, the plaintiff in this case. One must remember these protests quickly followed a shoplifting incident on Nov. 9, 2016, when one of the Gibson family members working at the store tackled a shoplifter outside the store. The Oberlin police showed up and arrested three people: the shoplifter and two individuals who tried to pull the shopkeeper from restraining the shoplifter. Somehow, the officials at Oberlin College either did not check with the Oberlin police department or Gibson’s to learn their side of the story, or the college ignored it. There is something deeper here. The December 2017 issue of The Grape, “Oberlin student cultural magazine,” published a story titled “A Culture of Theft,” about how some Oberlin students are compelled to steal from local merchants as a “right of passage.” Silly me. I thought that college students would be expelled for being convicted of shoplifting from local merchants. Eventually, these three students pleaded guilty to charges related to this incident and made a written statement to the court saying that this incident was not the result of racism on the part of Gibson’s. This was many months after the protests. I suspect these three students didn’t initially admit to what happened to their comrades in the student body. It is more heroic to be busted because of racism than a simple shoplifting charge. And the honchos at Oberlin College were dumb enough to buy this. I think the all-but-inevitable final verdict will determine that a school shouldn’t support its student protesters, and if a school does, they’ll pay dearly. We managed to protest back in the day without a school’s help. If the school doesn’t get involved with a protest, and tells the students to pay for their copies from a private printer, and holds off on other forms of support, then a college is less likely to be the target of a lawsuit. Lee Batdorff, Cleveland Heights
TRUTKO
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To change the situation, the public must change their attitude and realize, like the colonists, that citizens have a right to good, uncorrupt government that provides key services competently at reasonable cost. It’s not enough to hope that government will change without pressure or to beg the government to bestow good services. If Cuyahoga County residents continue to have low expectations and tolerate poor performance, county government will live down to that low expectation. In addition, significant additional charter reforms are needed to foster change of leadership, encourage competitive elections and gradually bring county government under control of the people. First, there needs to be a two-term limit for the county executive and council, and a three-term limit for judges, to discourage lifetime politicians and bring about new leadership.
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Fix public transit to attract users I’m writing in support of the “Mobility works” editorial in the June 24-30 edition. As a 50-something who has worked in downtown Cleveland most of my adult life, I wholeheartedly agree that public transportation is a key to economic development. I use RTA 90% of the time to get to and from work. However, it has become increasingly inconvenient to do so due to reduction in schedules and the traffic patterns the buses are forced to follow in the downtown area. I often have to wait 20 minutes for a bus in the evening and then it may take another 45 minutes to get to my home in Parma, with a large amount of that time spent just getting out of downtown due to the circuitous route the bus must follow. The morning commute isn’t as long. However, my workday with commute can be as much as 10 hours. This is why several people I talk to won’t use public transit — it’s just not convenient for their lifestyle. If more people used public transit, services could be improved, but services need to be improved before people will use public transit. SVN Ad-Liverpool-6-24.indd GCRTA has been taking surveys and is discussing these issues, but I believe they need to rethink their process. Rush-hour commuters from the suburbs should be given different options than the off-peak riders. More flyers should be created for the southern suburbs or commuters should be able to park their cars along the route instead of seeing “No Bus Parking” signs in a strip mall that has more parking spaces than it can fill. If buses must go through the city, less stops after certain major intersections would be helpful. Rushhour commuters don’t get special rates and we don’t get discount cards like students or seniors do. All this being said, I’ve opted to drive to work for the summer as road construction near my home has added an additional 20 minutes to the commute. Donna Kamp, Parma
App-friendly meters unwanted The article on the city’s decision to study the (manufactured, since no one is asking for them except the cash-strapped city) need for app-friendly parking meters was well-written. (“Cleveland study may lead to end of mechanical parking meters”: June 24-30 issue) I especially liked the section that outlined why the (cash-strapped) city is considering app-friendly meters: to raise the price of parking during special events; to track areas of the city with high meter usage (prime targets for higher rates during non-events); and for surveillance of overparked vehicles (so those “law-breakers” can be ticketed). No one wants the app-friendly meters EXCEPT those who make the apps, those who make the app-friendly meters and the cash-strapped city of Cleveland, so it amazes me that the city has authorized a $300,000 study, which will — miraculously — indicate that there is a need for them (by the city, not by the city’s residents or those from the ’burbs who must drive into the city for their work, schooling or entertainment). Eileen Beal, Cleveland Heights
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Second, there should be nonpartisan primaries to ensure competitive elections of the two best candidates. In the last county election, there were virtually no competitive contests. Without a meaningful choice of alternative candidates with different platforms, it’s not possible to determine public preferences and obtain “consent of the governed.” Third, the voters and taxpayers should vote to approve the county budget after approval by the county executive and county council. A public vote on the budget will make the priorities of county government more transparent and provide a real test to obtain the “consent of the governed.” Only by making political leadership more accountable to voter input will Cuyahoga County government improve to make citizens feel safer and more able to pursue their individual goals and happiness. Trutko is an economist and market research professional. The lifelong Cuyahoga County resident lives in Rocky River.
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“O mar hist ing ter o sity’ whe crea they than sugg less S den ing slow rece bea is ge “Th in U econ expa we g said Th may els mid part gest Stew ent othe Ta
Fluttering confidence A survey of 1,000 CEOs, CFOs and other C-suite executives of America’s middle market companies shows that though confidence levels in the local, national and global economies are trending down, middle market leaders remain most confident in their local economies. Respondents have confidence in the... Global economy: 70% National economy: 80% Local economy: 88% Source: National Center for the Middle Market first-quarter survey conducted in last two weeks of March
MIDDLE MARKET
As the economy keeps growing, so do doubts A national survey finds that although midmarket revenue and employment growth are strong, confidence is starting to flag. By Judy Stringer clbfreelancer@crain.com
Across the country, middle market companies continue to bask in the sunlight of a historically long economic expansion. First-quarter revenue swelled by an average of 8.7%, according to a survey conducted by the National Center for the Middle Market. That's the second-highest year-over-year growth in the quarterly survey’s eight-year history, and executive director Tom Stewart said raw second-quarter data suggest revenue growth remained strong heading into summer. Companies reported employment gains, too. After falling at the end of 2018, the rate of employment growth among the midmarket respondents inched back up slightly to 5.6% in the first three months of the year. Still, Stewart noted, clouds may be rolling in — at least psychologically. Survey respondents’ projected growth rates for both revenue and employment over the next 12 months — as well as the number of firms indicating that revenue and the size of the workforce will increase in the year ahead — were down from late 2018. More telling, economic confidence levels slipped for the third straight quarter and, for the first time in several years, the proportion of leaders saying they would save an extra dollar as opposed to investing it rose significantly. SEE SURVEY, PAGE 11
Illustration for Crain’s by Andrea Ucini
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SURVEY
“This is now the longest expansion in U.S. economic history, and most economists expect it to continue to expand but perhaps more slowly as we get into 2020, 2021 and 2022.”
CONTINUED FROM PAGE 10
“Overall confidence among midmarket executives is still high from a historical perspective, but it is trending down,” said Stewart, whose center operates out of Ohio State University’s Fisher College of Business, “and when you combine that with an increasing number of people saying they would sit on an extra buck rather than putting it right to work, it does suggest to me that they are becoming less bullish.” Some of the softening in confidence undoubtedly reflects escalating concerns about an economic slowdown. Stewart said that while a recession is not expected, the drumbeat about impending sluggishness is getting louder. “This is now the longest expansion in U.S. economic history, and most economists expect it to continue to expand but perhaps more slowly as we get into 2020, 2021 and 2022,” he said. The lingering labor shortage also may factor into lower confidence levels among these businesses. The middle market is the fastest-growing part of the economy and has the biggest appetite for talent, according to Stewart, meaning “they feel the talent crunch more acutely than any other sector.” Tariffs and trade policy is another
— Tom Stewart, National Center for the Middle Market
“I do think people are starting to look at broader signals around economic health and markets and are thinking it just feels like we may be coming to that inflection point.” — Jacob Duritsky, vice president of strategy and research at Team NEO
area that generates uncertainty, if not skepticism. Jacob Duritsky, vice president of strategy and research at Team NEO, the regional partner of the nonprofit state economic engine JobsOhio, said that it is too soon to ferret out precisely how well Northeast Ohio’s middle market is performing this year. However, he does report early signs that “we are continuing the trend of adding jobs year after year.” Confidence levels are an even tougher question. Given the region’s hefty manufacturing base, Duritsky
said one possible indicator would be an annual survey conducted by the Manufacturing Advocacy & Growth Network. Slightly more than a third (35%) of the executives surveyed by MAGNET between November 2018 and January said they expected an economic expansion during 2019, compared to more than half of respondents in each of the two previous years (58% and 56%, respectively). As for their own performance, 78% of manufacturers expect their company revenue to grow in 2019 versus 86% when they were projecting into 2018.
“If you look at the latest survey, overall optimism about future growth is still pretty high,” Duritsky said, “but lesser so than you saw a year ago. … I do think people are starting to look at broader signals around economic health and markets and are thinking it just feels like we may be coming to that inflection point.” Timothy Burke, KeyBank’s Northeast Ohio market president, has gotten pretty similar feedback from the bank’s middle market clients. Most remain very positive about growth in the short term, he said, but “are start-
ing to prepare for some type of slowdown 12 to 24 months out.” Still, despite a softening of longer-term confidence, Burke said he hasn't seen a significant portion of the bank’s midmarket clients pull back from planned expansions or investments. Growth in the health care sector in particular continues to be very strong regionally, driven by demand for care by an aging population. Outside of health care, he said M&A activity in the region will get a push from “a shortage of transition strategies” among small and middle market companies currently owned by baby boomers who are ready to retire. In the manufacturing space, Duritsky noted that more and more companies are making investments — or at least evaluating investments — in technologies such as the Internet of Things and additive manufacturing to increase productivity and make them competitive even in a slowing economy. “Unified efforts” to make the region a leader in blockchain and fintech, he added, also suggest long-term economic pessimism isn't sideling current investments in innovation. “Even there, however, it is a little too early for us to say with a great deal of confidence if R&D spending will increase this year or not,” Duritsky said. “We will have a much better sense of where we stand after we get through the next few months.”
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Electronic medical records drive growth at Hyland By Lydia Coutré lcoutre@crain.com @LydiaCoutre
The growing ubiquity of electronic medical records (EMR) has helped propel Hyland Software Inc.’s growth in recent years. The Westlake-based company first dipped its toes into the health care industry about two decades ago. Since then, health care has grown to be the biggest industry Hyland supports today, accounting for 45% of its business. “We actually started in financial services when Hyland first became a company, and I think that served us well because, as you can imagine, in banking business, its high transactions and security is critical,” said Susan deCathelineau, Hyland’s senior vice president of global health care sales and services. “Well, that’s important for health care, too, right? Many transactions, and security is key in protecting that patient information.” Hyland entered the health care arena with revenue-cycle work, automating claims processing and providing electronic explanations of benefits. In 2009, the Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted as part of the American Recovery and Reinvestment Act of 2009, was signed into law to promote the adoption and meaningful use of health information technology. Though Hyland was already in the health care space, deCathelineau said that EMR mandates “helped us further propel what we were doing”
deCathelineau Clinicians utilize mobile and desktop devices to access health care technology systems. (Blend Images LLC via Hyland Healthcare)
as the company began moving into the clinical space and leveraging its OnBase solution to further expand the capabilities of EMRs. As organizations began implementing EMRs, they soon realized that more than 65% of the content related to a patient resides outside of that technology. Hyland saw an opportunity to integrate its OnBase technology as a content management system that could bring all of those other records into the EMR. “When an end user accesses a patient record, they not only see the discrete data that’s captured in the EMR but they can access all the other types of content that support the patient record, whether it’s a scanned document, a digital photo, an EKG result, a
surgical video — all of the content that is not captured as part of that electronic medical record needs to be part of that patient record,” deCathelineau said. “And that’s where our OnBase content management solutions, integrated with electronic medical records, (comes in) to support that strategy for health care organizations and to have access for their clinician to view that information.” According to the Office of the National Coordinator for Health Information Technology, in 2004, 20.8% of office-based physicians had electronic health record systems. As of 2017, that number was 85.9%. In 2015, more than four out of five of all nonfederal acute-care hospitals had adopted a basic electronic health
record with clinician notes, and 96% of nonfederal acute-care hospitals possessed an EHR certified by the U.S. Department of Health and Human Services — a number that held through 2017, according to the office. (The HITECH law calls the technology electronic health records while much of the industry calls them electronic medical records.) It’s taken time for providers to transition to EMRs, especially small organizations, deCathelineau noted, because it’s a sizable investment and financial commitment. “But that is also an opportunity for Hyland, in that some organizations use OnBase to be able to digitize their paper medical record,” she said. “So, in some cases, we are the bridge to the
electronic medical record. We can digitize that paper documentation and store all of this information in OnBase and the clinician can view that directly through our OnBase solution. Or they can then integrate it to their EMR when they’re ready to make that investment and move to electronic medical record technology.” At Hyland, this EHR/EMR adoption growth has translated to a 303% growth in its health care customer count in the last decade. Hyland’s acquisition of Perceptive a couple of years ago enabled it to manage medical images and integrate them into EMR. Historically, medical imaging was stored in numerous formats through different systems. The next step for Hyland is expanding into areas such as artificial intelligence, machine learning and other ways to take the data captured as part of the patient record and leveraging it through advanced technology. Some of that work is already in place. For instance, anonymous data can be used to identify trends, conduct studies and determine different types of treatments and protocols. “We’ve seen, definitely, growth in adoption of our solution integrated with EMRs as more and more organizations are adopting that technology, and that has impacted the growth of our health care business,” deCathelineau said. “Specifically to Hyland, health care is the biggest part of our overall business. And it’s where we continue to invest to further innovate our solutions and continue to expand our team members and expertise in supporting our customers.”
Adviser: Adam Sonnhalter and Jack Mencini
The mindset that leaves so many businesses stuck Do you ever wonder why some businesses seem to take off like a rocket while others simply bump along year-over-year? Chances are, it comes down to the owner. More specifically, the owner’s mindset. As owner, do you have more of an “investment” mindset or a “scarcity” mindset? Put more simply, do you spend money in your business when you need to or are you always cheap, no matter what? And don’t confuse cheap with frugal, because you can work with frugal, but cheap just sucks the life out of your business. So how do you know where you fit — investment or scarcity? Odds are, it won’t be that black or white. If you’re like most business owners, you’ll find that you have an investment mindset in certain parts of your business and then a scarcity mindset in other areas. Here are some common characteristics of someone with an investment mindset: JJYou’re not all about the money. (Hint: You can still be frugal here; just spend wisely.) JJYou think longer-term, usually in years or decades. JJYou find reasons “to do” vs. “not to do” things. JJYou listen with the intent to understand. JJYou live in the present and future. Conversely, folks with the scarcity mindset tend to approach things in the opposite way:
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JJYou’re all about the money. (If you’re cheap, you won’t spend at all.) JJYou think short-term, typically in days, weeks or perhaps months. JJYou find reasons “not to do” vs. “to do” things. JJYou listen with the intent to dismiss. JJYou live in the past.
From a big-picture standpoint, the investment mentality starts with everything being possible. That doesn’t mean you have all the answers yet, but it does mean you stay open to possibilities. The scarcity mindset often misses solutions because the owner is focused more on what can’t be done vs. what can be done. Try adding the word “yet” to the end of whatever statement you are making to help transition your mentality from being scarcity-focused to being investment-focused. For instance, when it comes to the product or service side of your business, are you always finding reasons not to invest in a piece of equipment or machinery? Or, on the marketing front, are you dismissing tactics that could help get the word out about your business because there is no guarantee it will work? How about the people front? Are you holding on to folks you know you should be parting ways with because they are “affordable” or do you not hire someone because they’re asking for a salary vs. an hourly wage? If your go-to phrase for any of these situations is “We don’t have
Mencini (left) and Sonnhalter are partners in the business coaching firm Maximum Value Partners.
money for that,” try adding the word “yet” to the end of that statement and see if it doesn’t help change your mindset a bit. That one word frees you and your team to become problem-solvers. Again, chances are you might have a mixture of these investment and scarcity mindsets. We find it’s easier to get most business owners to have an investment mindset when it comes to the production side of their business, whether that’s purchasing or leasing a new piece of equipment or hiring a new resource to service your customers. Most owners quickly connect the dots that they can’t increase their sales unless they have the equipment and/or people to produce the product or service. Some owners even get over the scarcity mindset when it comes to making investments in their marketing and sales efforts. This could in-
clude everything from revamping a website to sponsoring a local sports team to hiring a salesperson. Similar to production, the owner can usually connect the dots to see how that website or salesperson should drive additional sales for the business to cover those increased costs. The part of a business that usually takes the longest to convert to the investment mindset has to do with the administrative side. This tends to be the least understood and least liked part of the business for owners. Some view it as one of the necessary “costs” of doing business and therefore the investment should be minimized. The biggest components of the administrative side of the business include people, numbers, systems, leadership and planning. In smaller businesses, if you look into the majority of those that are stuck being small, they will often have an office manager handling all this stuff. Even for the most investment-minded owners, putting resources into the administrative side of the business can be the most difficult investment to make. The biggest reason is that the owner often is unable to connect how a well-administered business can lead to increased profits. This was the case for a body shop that had about $250,000 in sales when the owner purchased it and had since grown to more than $10 million in sales in less than a decade. The owner’s investment mentality has been a key to the business’s success.
It started with an investment in equipment. As you’ve probably noticed, modern vehicles have essentially become computers on wheels. If you want to continue fixing cars, it requires a substantial investment in equipment to make sure all this technology is working correctly. Combine that with the shift from steel to aluminum for some vehicles and many current body shop owners would rather milk what they have or sell than invest in their business. This owner also invested a lot of time and effort in systematizing everything his team does from the time they secure the keys to the time the vehicle is returned to the owner. The very last area where this body shop owner made significant investments was on the administrative side. Those included hiring some outside advisers to invest in his development as a leader, as well as hiring a controller. The owner was surprised to discover how quickly the controller paid for himself. The return on that investment included everything from improved cash flow to increased margins to tax savings. About three months after hiring the controller, the owner joked, “Hey, why didn’t you guys make me hire this guy sooner?” So how about you? Are you more heavily weighted to an investment or a scarcity mindset? Until you find a way to adopt the investment mindset for your entire business, your growth opportunities will remain limited.
6/27/19 11:17 AM
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Marijuana industry faces tax issues amid web of state, fed laws There is a growing interest in the cannabis industry and a sense that it holds real business opportunities. Earlier this year, the first medical marijuana dispensaries in Ohio opened their doors. As of early June, there were 18 dispensaries operating in Ohio and another 38 had obtained state licenses but were not yet open for business. Nationwide, 33 states and the District of Columbia have legalized medicinal marijuana. However, there remain serious headwinds for operators and investors. Marijuana remains a Schedule 1 controlled substance under the Controlled Substances Act, which means it's a federal crime to be involved in the business, including the production, sale and distribution of marijuana products. These crimes carry hefty monetary penalties and even long prison sentences. Federal law enforcement has acknowledged the inconsistencies between federal law and the laws of many states, but no clear safe harbor has been offered. The message from the Justice Department has been mixed, and there is no assurance that compliance with state law will insulate people involved in a marijuana enterprise from federal prosecution. There are also challenges with finding legal representation and financial services. The Ohio Supreme Court now permits attorneys to counsel clients on compliance with Ohio law regarding medical marijuana, but attorneys are also required to explain the implications of such activities under federal law. Federal banking laws contain numerous requirements that banks report criminal activity to federal authorities. This has made it nearly impossible for marijuana businesses to obtain banking services, and there are obvious limitations and security concerns with operating a cash business.
Higher effective tax rate Added to all this is the adverse treatment of marijuana businesses under the tax law. Marijuana businesses are effectively subject to a higher income tax rate than other for-profit businesses because they cannot deduct expenses other than costs of good sold (COGS). The starting point for federal income tax under the Internal Revenue Code is that all gross income must be reported from whatever source derived. Familiar income tax deductions for ordinary and necessary business expenses include wages, rent and others. But marijuana businesses may not claim most deductions due to Code Section 280E, which disallows deductions for businesses carrying on a trade or business that “traffics” in Schedule I and II controlled substances under federal law. Because marijuana is a Schedule I controlled substance, Section 280E bars marijuana businesses from taking most business deductions and effectively raises their tax rate.
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Grassi is chairman of McDonald Hopkins LLC.
Management companies Some marijuana businesses have turned to separate management companies to perform their business functions. These management companies may take responsibility for hiring employees, managing human resources and making payments for expenses such as wages, advertising and rent. The separate management companies may have access to payment and banking systems that marijuana businesses cannot otherwise access. However, one recent U.S. Tax Court case, Alternative Health Care Advocates v. Commissioner, serves as a cautionary tale for the management company structure. Management companies can create “phantom income” if the management company is itself deemed to be trafficking in marijuana. Suppose a marijuana dispensary generates $2 million in revenue and incurs $1 million in expenses that are nondeductible due to Section 280E. The owners of the dispensary decide to organize a management company to contract with the dispensary to perform business functions and incur and pay the $1 million in various expenses associated with the dispensary business. In turn, the dispensary pays $1 million to the management company for its services. Ordinarily, these transactions would be a wash relative to the situation where there is no management company. But if the management company is found to be trafficking in marijuana, then it has nondeductible expenses as well and must recognize $1 million in income that would not exist had the dispensary acted alone. Under similar facts to this example, the Tax Court in Alternative Health Care Advocates found, in essence, that the management company created income because it was indeed trafficking in marijuana and unable to deduct its expenses.
Plan ahead Careful planning can help navigate the legal environment for the marijuana industry and mitigate disadvantages. Marijuana businesses should thoughtfully consider their options and risks when it comes to performing basic business functions such as payroll. If a management company structure is appropriate under the circumstances, proper tax reporting can avoid costly penalties. As the marijuana industry evolves, keep in mind that we can expect still more legal developments in the courts and the halls of Congress.
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NOTABLE WOMEN IN EDUCATION
T
he women profiled here are dedicated to creating and expanding learning opportunities for Northeast Ohioans of all ages, at all levels and in a host of fields. Their leadership, devotion and example are helping to shape a better future for our region and its people.
Find the profiles on Pages 15-22
Illustration by zonadearte/iStock
Christine Alexander-Rager
Kelly Brucker
Marisol Burgos
Title: Chair, Department of Family Medicine, The MetroHealth System, Cleveland Most recent education: Doctor of Medicine, The Ohio State University
Title: Pathway program director and lead, Tech Elevator, Cleveland; Most recent education: B.A. in broadcast journalism and public relations, Baldwin Wallace University
Title: Head principal, Thomas Jefferson International Newcomers Academy, Cleveland Metropolitan School District; Most recent education: Master of Education in curriculum and instruction and educational specialist, Cleveland State University
When Dr. Christine Alexander-Rager joined MetroHealth System 22 years ago, her performance earned her promotion to director of obstetrical education, a program that was struggling and on probation. Within a year, Alexander-Rager had restored the program’s reputation. “She is a clinical leader in family medicine who has held education of the next generation of providers at the core of her focus,” said Dr. Brian Mercer, department chair, obstetrics and gynecology, for The MetroHealth System. Alexander-Rager works to not only ensure that students learn the scientific, technical and diagnostic skills of medical professionals, but also enables them to acquire necessary skills in empathy, listening and understanding by taking them to patients in the community. She does this through a MetroHealth program that allows Cleveland public school students to receive medical care at school. Students in the School Health Program have better attendance rates and score higher grades. In addition, the medical students and residents training with the program providers gain an education not available in traditional medical settings. Medical students and residents also learn by treating homeless individuals through the Doctors on the Streets program and through a pilot program in which Cleveland-area residents can get medical screenings at libraries. “Because of (Alexander-Rager’s) work developing other leaders in the organization, her positive influence on learners at all stages travels well beyond the borders of Cleveland,” said Dr. Amy Crawford-Faucher, program director of the Forbes Family Medicine Residency Program
In her two years at Tech Elevator, Kelly Brucker has designed and delivered dozens of workshops and one-on-one career coaching sessions on creating personal brands and building and enhancing the soft skills necessary to conduct effective searches for entry- and junior-level software developer jobs. “I have never met someone who cared so much about helping students achieve their career goals,” said Tyler Teran, a junior software developer at Elite Business Solutions and Tech Elevator alumni. Relentless and encouraging, Brucker also helped launch a new Cleveland chapter of Get Women in Technology (GetWitIT), which held its first Women in Technology Conference in November 2018, with hundreds of female software developers and leaders in attendance. “I met Kelly when my husband went through the Tech Elevator program,” said Danielle Karaplis, product strategist and manager at FormFire and treasurer for Cleveland GetWitIT. “Kelly’s unwavering commitment to elevating people in the entire tech community of Cleveland is inspiring. She brings a passion to the role that I admire and it has been a joy working with her. She leads with that passion and calmly and quickly overcomes any obstacle as we plan our conference. “Due to her leadership, the national president of GetWitIT recently commended our chapter’s organization and dedication to GetWitIT and our conference. Kelly is changing the lives of so many in the Cleveland tech community.”
Thomas Jefferson International Newcomers Program serves students new to the U.S., including immigrants and refugees with little to no English skills or formal schooling. Many of them are overaged or traumatized or both. Marisol Burgos develops collaborations with community organizations such as MetroHealth Trauma Care and Catholic Charities Response to address this unique student body’s academic, social and emotional needs. “(Ms. Burgos is) a very caring person, dedicated to the children and the staff as well as the parents whose children come here,” said Yusef Abdallah, a high school ESL instructor at Thomas Jefferson International. Burgos also cares for her more than 80 staff members and is a mentor to new employees, ensuring they have everything necessary to become excellent teachers and school leaders. In addition, she serves as a secretary and teacher at CBIDS Bible Institute in Cleveland. With her assistance, the institute was able to add a Chaplain College in 2018. “One of the first things that I noticed upon meeting Marisol was her tireless energy,” said Andres Mercado, CBIDS Bible Institute assistant director. “She is fair-minded. She does not show partiality, nor does she expect it. She is conscientious, dependable, well-organized and dedicated to the causes that she becomes involved with. Marisol is able to make clear-cut decisions and accepts responsibility for the decisions she makes.”
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NOTABLE WOMEN IN EDUCATION
Leanne Chrisman-Khawam
Anne Christo-Baker
Mary Ann Corrigan-Davis
Courtney DeMayo Pugno
Pa
Title: Director, Transformative Care Continuum, and assistant professor, social medicine, Ohio University Heritage College of Osteopathic Medicine; Most recent education: Master of Education in medical education, John Carroll University
Title: Professor and chair of the Department of Business, University of Mount Union, Alliance; Most recent education: Doctor of Education in leadership studies, Bowling Green State University
Title: President, St. Joseph Academy, Cleveland; Most recent education: Master of Science in management, Case Western Reserve University
Title: Associate professor of history, Heidelberg University, Tiffin; Most recent education: Doctor of philosophy in history, University of Houston
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Leanne Chrisman-Khawam is fundamentally changing the way physicians are trained. Holding a medical degree and yellow-belt Lean Six certification, she has helped launch solutions to problems in medical education. “As soon as she arrived at the Heritage College, she hit the ground running at rocket speed,” said Isaac Kirstein, dean of the Heritage College of Osteopathic Medicine, Cleveland campus. “She developed an innovative educational pathway and partnered with two Cleveland Clinic family medicine residency programs eager to benefit from this new way of training.” One Transformative Care Continuum program enables students committed to practicing family medicine to graduate in three, rather than four, years, as they begin working as part of clinical teams in their first year of medical school and remain members of the team while in residency. This creates a seamless transition between undergraduate and graduate medical education. The six-year program focuses on system improvements and population health to reform the care model, address individual patient needs and impact outcomes by addressing larger communities. Chrisman-Khawam, a Family Systems Educator fellow with the Society of Teachers of Family Medicine Behavioral Science, is the founding physician and medical director for Doctors on the Street, a medical outreach program for the homeless in Cleveland. “No matter the setting, Leanne has a legacy of innovative program design and implementation, ultimately leaving each with a stronger education foundation as a result of her work,” said Christine Alexander-Rager, chair of the Department of Family Medicine at MetroHealth.
Recognizing that Anne Christo-Baker is consistently cognizant of big-picture issues, the University of Mount Union hired her to lead the university in a Master of Business Administration degree that stands out from the many other MBAs offered in the region. “In her first year at Mount Union, she has partnered on a feasibility study for the exploration of an MBA degree here and has worked to implement the Business Department’s new accreditation with Accreditation Council for Business Schools and Programs,” said Jeffrey Breese, vice president for academic affairs at Mount Union. During her short tenure there, Christo-Baker also has been instrumental in developing the university’s new risk management and insurance degree major and helping to integrate its sports business program into the Department of Business. In addition, Christo-Baker, an active recruiter of young women into Mount Union’s business department, is a member of the Africa Academy of Management, the Academy of Management, the Midwest Academy of Management, the Society for Human Resource Management and the International Leadership Association. She also serves on the boards of the Alliance YWCA and the Chicagoland Immigrant Welcome Network.
Visionary Mary Ann Corrigan-Davis continually transforms her alma mater, St. Joseph Academy, into a more inclusive and impactful educational institution. Corrigan-Davis has been the key driver for the doubling of the private girls school’s operating budget, increasing the school’s endowment 278% and implementing $10 million in capital improvements. She also was integral to boosting tuition assistance to $2 million from $500,000. “Whether it has been providing shadowing opportunities with Cleveland leaders, offering trips to various places around the country and the world, Mary Ann has widened the horizons for all of the students in her care,” said Diane Downing, executive director of SayYes to Education. “Many of them receive scholarships to attend the academy, provided with funds that Mary Ann has raised.” More students are being better prepared for college and the outside world under Corrigan-Davis’ leadership. The school has quadrupled its number of advanced-placement offerings and introduced a health and sciences honors program and engineering and design initiatives, as well as developing a women’s leadership symposium. “Without my experiences at St. Joseph Academy and Mrs. Corrigan-Davis’ encouragement, I never would have had the courage to work as hard as I have and apply to get accepted into Berklee College of Music, where I will be going next year on a considerable merit scholarship,” said 2019 SJA graduate Olivia Martinez. “Every student at SJA has individual interests, and Mrs. Corrigan-Davis makes an effort to provide as much support and guidance as she can for each and every one.”
A passionate teacher of history, Courtney DeMayo Pugno does double duty at Heidelberg University, where she is also founding director of the school’s Center for Teaching Excellence, which provides faculty members an opportunity to participate in teaching consultations, technology workshops and other cohort programs, workshops and online training. “Our institutional mission is to prepare our students to lead lives of purpose with distinction. Dr. DeMayo Pugno inspires all of us to fulfill our shared mission more passionately, thoughtfully and successfully,” said Heidelberg University president Robert Huntington. High-impact programs include faculty orientation and mentoring programs; a faculty learning community, where professors from different disciplines collaborate to revise courses with innovative strategies; and a roleplaying course in which faculty members learn what it’s like to be an online student. The program, under DeMayo Pugno’s leadership, works to improve student engagement, retention and pass-fail and graduation rates. In addition, she was one of the authors of HYPE Career Ready, a co-curricular program that helps students connect classroom learning with life and career skills. DeMayo Pugno also co-chairs the planning committee of the Lichtman-Behm Genocide Lecture Series, which features themes of genocide, such as the Holocaust, and brings a survivor and other guests to enlighten the campus community, eighth- through 12th-graders and other members of the wider community. DeMayo Pugno is also an affiliated faculty member at The Ohio State University Center for Medieval and Renaissance Studies.
“S pers of p CPH “Cle tion beca In train und riers lem skill chil D are n resu sour sup cure cati den Rem prov liter stud maal an “E rece tion chil mor rect
Congratulations Mary Beth Zeni, ScD on your well-deserved recognition as one of Crain’s Notable Women in Education.
ursuline.edu
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Pamela DiPasquale
Tricia Dirker
Betsy Ekey
Bonnie Entler
Title: Director of education, Cleveland Play House; Most recent education: Master of Arts in theater education, Emerson College
Title: Technology education manager, S3 Technologies, Akron; Most recent education: B.A. in psychology, The College of Wooster
Title: Program director and associate professor, physician assistant studies, University of Mount Union, Alliance; Most recent education: Master of Science in physician assistant studies, Alderson-Broaddus College
Title: Executive director, Seeds of Literacy, Cleveland; Most recent education: Master’s in nonprofit organization administration, Case Western Reserve University
Pamela DiPasquale manages a $2.7 million budget directing the educational programming for the 104-year-old Cleveland Play House (CPH), which serves more than 40,000 youth and adults. “She’s a passionate, intelligent and driven person whose efforts have improved the lives of people of all ages and all walks of life,” said CPH managing director Kevin Moore. “Cleveland Play House is a better organization and our community a better place to live because of Pamela DiPasquale.” In 2017, she launched year-round theater training classes for all ages. Other programs under her leadership aim to break down barriers to learning through creative problem-solving, providing workforce and lifeskill development, especially for underserved children, during and after school. DiPasquale knows significant resources are necessary to make all of this happen. As a result, she provides leadership in identifying sources, writing proposals and securing the support needed. In 2014 and 2018, she secured $2 million in U.S. Department of Education grants to develop an artist-in-residence program, called Compassionate Arts Remaking Education. CARE strives to improve social/emotional learning skills and literacy, as well as English and arts skills, for students at 16 area schools and provide trauma-informed care to students with emotional and behavioral disorders. “Every first-grader in the Lorain schools receives the CARE program for socio-emotional learning. The teachers love it and the children benefit from it. Who could ask for more?” said Cecilia H. Render, executive director of the Nordson Corp. Foundation.
Tricia Dirker uses her “Let’s try it” attitude to enhance S3 Technologies’ ed-tech vertical, which, in part, helps schools engage their students. She employed S3’s Technology Integration Model (TIM), which measures how teachers engage technology and integrate it into their methods of instruction, to help the company better consult with schools. Whether tech inspires a new or a seasoned educator, Dirker helps them come up with creative ways to improve the student experience. Dirker also implemented TechU, a forum for local schools that offers more than continuing-education credits for teachers and tech coordinators. It also allows them to meet quarterly and share best practices, learn about new and innovative ways to provide technology in their schools and participate in hands-on learning opportunities. “Tricia is an exceptional leader in the education world,” said S3 Technologies owner and president Nancy Larker. “She is viewed by teachers and staff in schools as a knowledgeable resource. She is enthusiastic about her job and genuinely cares about transforming the way technology is used in the classrooms to simplify the teachers’ lessons and enhance the students’ learning experience.”
“Betsy Ekey directs the No. 1-ranked Ohio graduate program in physician assistant studies and finds ways to partner the program with other units and organizations — such as the Cleveland Clinic and Northeast Ohio Medical University — making her a most valuable member of the Mount Union team,” said Jeffrey Breese, the university’s vice president for academic affairs. Ekey’s team-building efforts and collaborative management style make every member of the school’s faculty and staff feel as if they have a voice and complete ownership of the physician assistant studies program. Her team brought the program through a successful reaccreditation effort that led to an increase in cohort size and the addition of faculty positions. She also directed a thorough study of the program’s curriculum, which resulted in enhancements, and the establishment of predictive testing procedures that led to students receiving higher scores on the certifying exam. In addition, Ekey is active in the Ohio Physician Assistant Education Collaborative and is completing her fellowship in primary care training enhancement at the Northeast Ohio Medical University. She served on the Rotation Exam Review Committee, Internal Medicine/Family Medicine of the Physician Assistant Education Association, for two terms and as a volunteer for Alliance Community Hospital’s annual Community Health Fair and Heart Health Month event.
Despite the challenges faced by nonprofits, Bonnie Entler, whose motto is “We do it for the students,” has been integral to the continued growth Seeds of Literacy is experiencing. “Bonnie has raised a strong nonprofit organization during a time when peer agencies disappeared,” said Mark Yanochko, founder of Mark Yanochko Technical Services Inc. “Since Seeds began in 1997, the number of state-funded adult basic education programs decreased by more than 65%. Seeds grew from serving 200 students to nearly 1,000, with a staff of 250 volunteer tutors, making it larger than the average high school.” Entler guided Seeds of Literacy’s transition from a ministry of the Sisters of St. Joseph to a 501(c)3 nonprofit and spearheaded its national accreditation by ProLiteracy. She led a redesign of its curricula, wrote a digital literacy curriculum based on third-party certification and incorporated computers, work that outpaced peer agencies statewide and nationally. Under Entler’s leadership, Seeds opened an East Side location to serve an area where nearly 95% of residents are considered functionally illiterate. The program is unusual in that it offers open enrollment, weekly registration and no waiting lists. Seeds is open 12 hours a day and students can attend as often as three times daily, four days a week and 49 weeks of the year. Further, it provides instruction for beginning readers as well as those seeking GED prep. Seeds also provides one-on-one tutoring in Spanish to the community’s Latino population.
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Cleveland State University Congratulates Our Women of Note in Education • GINA HUFFMAN, Assistant Director of Admissions Cleveland-Marshall College of Law • ANNE NELSON, Assistant Dean, Student Services Monte Ahuja College of Business • CRYSTAL WEYMAN, Professor and Chair Department of Biological, Geological and Environmental Sciences College of Sciences and Health Professions
On behalf of the CSU community, we applaud your achievements. 19417
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NOTABLE WOMEN IN EDUCATION
Rachel Hosler
Gina Huffman
Pamela Jankowski
Sarah Johnston
He
Title: Associate dean for experiential learning, Walsh University, North Canton; Most recent education: M.A. in counseling and human development, Walsh University
Title: Assistant director, office of admissions, Cleveland-Marshall School of Law, Cleveland State University; Most recent education: Master of Public Administration, Cleveland State University
Title: Director of literacy and learning, Cuyahoga County Public Library, Parma; Most recent education: Master of Library and Information Science, Kent State University
Title: Head of school, Old Trail School, Bath; Most recent education: M.A. in private school leadership, Columbia University
Title Con High tion educ
Rachel Hosler conceived and launched Walsh University’s Office of Experiential Learning because she knows that being able to apply education in real-world settings reinforces students’ learning and better prepares them for postgraduation employment. “I have learned — and continue to learn — so much from (Rachel). She leads not only by example … but also by unflagging support,” said Elizabeth Angerman, education-abroad specialist at the Office of International Affairs at Ohio State University. “She is quick to grasp the big picture and its many implications.” Experiential offerings under Hosler’s leadership include academic programs in Latin America, a Peace Corps prep program, a Leaders in Social Justice program, and a scholars learning community for underrepresented students. In 2017-2018, students performed 40,000 hours of community-based service and learning, 170 Walsh students studied abroad, more than 600 students had for-credit internships and more than 200 participated in learning communities. Hosler also trains faculty and staff. “As a new manager, she has coached me through techniques about how to lead my team more effectively,” said Abigail Poeske, director of career and experiential learning at Walsh. “In addition to daily responsibilities, Rachel has provided me with a space to talk about big ideas and innovation in higher education, allowing me to understand what we are doing in a larger context and in a way that makes me feel part of a greater movement.”
Prior to her current role, Gina Huffman was an academic adviser and assistant director of Cleveland State’s McNair Scholars Program. Although the McNair students were working toward their doctoral degrees, she partnered with JumpStart to develop a STEM career forum featuring a panel of professionals to help students understand how their science degrees could translate into entrepreneurial career opportunities in STEM. Huffman later earned her current position at the Cleveland-Marshall School of Law thanks to her ability to identify opportunities to attract prospective students and develop unique programs, such as “The Ultimate Plan A.” Instrumental in developing new initiatives for creating innovative recruiting strategies, Huffman participates in CSU’s Diversity Strategic Plan to engage students from racial and ethnic backgrounds underrepresented in law. In addition, Huffman is a member of the Legal Advisory Committee at Ursuline College, where she earned her undergraduate degree. “As we have worked on programming to our undergraduate students, Gina is responsive, enthusiastic and always professional. When we begin talking about an idea, I know that it will come to fruition because of Gina’s tremendous follow-up,” said Anne Murphy Brown, director and associate professor of legal studies at Ursuline. In partnership with Ursuline, Huffman hosts a “Women in the Law” panel to talk about some of the challenges, triumphs and progress made in establishing the place women have in the legal market. Student participants have gone on to become successful in their college and professional careers.
From idea generation to implementation, Pamela Jankowski brings impactful programming to Cuyahoga County Public Library patrons. The Baby and Kindergarten club programs focus on family learning and develop a support group for parents and caregivers who don’t yet have the supportive environment that comes with a school community. Kindergarten through eighth-graders receive a snack and free homework tutoring and mentoring after school. During summers, the library offers more than 80 free camps to help youth develop skills that prevent any summer learning slide. “Pam has recognized that library-based learning removes barriers to formal and informal education and ensures equitable access to all,” said Sari Feldman, executive director of the Cuyahoga County Public Library. After-school literacy intervention helps students at risk of not meeting third-grade reading goals. The library system also provides ACT and GED prep classes for youth, according to their needs. “Pam has worked with MyCom to introduce new and innovative educational programs to our youth of Greater Cleveland, while building strong partnerships within the communities she serves to do the same,” said Kasey Morgan, network director of MyCom Youth Development Initiative of Greater Cleveland. The programs Jankowski and her team developed aid more than just young people. The library system provides opportunities for older adults to gain skills for post-retirement careers and for adult learners to take combined English for Speakers of Other Languages and technology certification courses.
Sarah Johnston is writing the next chapter at Old Trail, a private school serving nearly 500 students. Prior to her relatively recent arrival there, Johnston was director of admission and financial aid and then associate head for enrollment management at Hathaway Brown School, where she created new programs, increased enrollment and financial aid and helped restructure the upper-school adviser program. “Sarah played an instrumental role in transforming Hathaway Brown into the incredible school it is today; one that transforms the lives of girls,” said Bill Christ, former head of Hathaway Brown. At Old Trail, Johnston is responsible for a $10 million operating budget and $9 million endowment. In her two years at the school so far, she’s written a new strategic plan, added new programs and is overseeing construction of an outdoor classroom that will connect children to the natural world. In addition, Johnston sits on the board of directors and the governance committee of the Akron Art Museum and is an active participant in the Global Education Benchmark Group.
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Ann Klotz
Luling Li
Joelle Magyar
Title: Mandarin teacher and director, Shaker Heights High School Confucius Classroom, Shaker Heights; Most recent education: Master of Education in curriculum and instruction, Cleveland State University
Title: Superintendent, Brecksville-Broadview Heights School District, Brecksville; Most recent education: Master of Education in school administration, Cleveland State University
Heather Kama-Starr started as curriculum and instruction specialist for Max S. Hayes High School but was promoted within a year to assistant principal for her competence and enthusiasm. Kama-Starr perceives the value of learning inside and outside of the classroom and makes both experiences a priority for students through creative programming. She helped organize professional development opportunities and guidance for students and teachers to promote cross-curricular lesson plans and experiences, such as incorporating core learning objectives (English, math, etc.) into trade classes such as welding and machining. She has been integral to the high school obtaining a grant to expand Advanced Placement course offerings, partnering with Cuyahoga Community College to offer a college-level robotics class and helping launch a machining pre-apprenticeship program that already has resulted in five students graduating with pre-apprentice credentials. “Principal Heather Kama-Starr has not only inspired me to be a better educator, but her altruistic acts toward students, families and faculty have left a significant impact on our entire school community,” said Cynthia Dalveren, head guidance counselor at the school. “Heather’s compassion and genuine concern for the overall education and welfare of Cleveland’s youth can be felt by everyone she comes into contact with.” Kama-Starr is a member of the Cleveland Council of Administrators and Supervisors, the Dyslexia Foundation, the Campus International School Parent Caring Organization and numerous other groups. She plans to return to her early childhood education roots in the fall as assistant principal at Riverside Elementary School.
Every program Ann Klotz develops for Laurel School, a private all-girls K-12 school, embodies her dedication to knowing how girls learn, think and feel. She understands that a rich curriculum addresses not just their academic needs but their social and emotional well-being as well. Besides innovative coursework, Klotz founded Laurel’s Center for Research on Girls, which integrates research on how girls learn and grow into each student’s education. Curriculum reflects research on the power of growth mindset, the importance of educating girls about stereotype threats and proven approaches for engaging and retaining girls in STEM fields. “Ann is a visionary leader in the girls school community, having started or led programs that make an impact worldwide,” said Brad Rathgeber, head of school and CEO of One Schoolhouse, a supplemental educational organization. “At Laurel School, she founded Laurel’s Center for Research on Girls that informs best practice and strong pedagogy for the entire community of girls educators. She also helped found the world’s first online school designed specifically for girls (now One Schoolhouse) to expand access to programs, ideas and opportunities for more girls.” Laurel was one of the first schools to partner with One Schoolhouse. Now, more than 100 schools have done so. Students like those at Laurel have taken numerous Advanced Placement courses through the online program. In addition to running the school of 640 students, Klotz teaches drama in Laurel’s primary school and English in the upper school.
Luling Li shows exceptional prowess at bringing together cultures through educational programming. In 2006, the Ohio Education Department selected Li to spearhead and implement the Chinese program at Shaker Heights City School, where she started as a visiting volunteer teacher. Under her direction, the program grew from one teacher to six, instructing more than 2,000 students. In 2011, Li was promoted to director of the school’s Confucius Classroom. “Luling Li is a leader in Chinese language and cultural instruction in Shaker Heights City School District. She is redefining Chinese instruction as a team effort to improve cultural awareness and understanding of the Chinese people and their communities. She is a model of the International Baccalaureate spirit of inquiry, global perspective and academic excellence,” said Stephen Wilkins, interim superintendent of Shaker Schools. Li also seeks opportunities for youth to travel to culturally diverse settings near and far and continuously looks for ways to enhance programming. A respected leader in the community, Li was coordinator for the Ohio Association of Teachers’ of Chinese northeast region and has been a mentor to 24 of the 26 Chinese teachers in the region. She also served on the Curriculum Committee of the Global Ambassador Language Academy, the first and only Mandarin Immersion school in Ohio.
In the past three years, Joelle Magyar successfully negotiated four labor contracts, created a new five-year strategic plan, secured a 5.99-mill levy for emergency operating expenses and a $44.5 million bond issue to build a new district elementary school. “Superintendent Magyar is a passionate leader for the Brecksville-Broadview Heights City Schools, who blends a potent combination of big-picture thinking and action, along with an educatorlike, student-oriented focus with the ultimate intent of always helping our children grow into tomorrow’s leaders,” said district human resources director Brian Wycuff. The Buckeye Association of School Administrators (BASA) selected Magyar to represent the group at a summer 2019 leadership conference in Davos, Switzerland. “She is willing to share her experiences and expertise by presenting at state and regional conferences and regularly participates in professional learning experiences which challenge her as a leader and provide insight into issues beyond her borders,” said Cynthia J. Walker, director of member development, BASA Ohio Superintendent’s Association. BASA also awarded Magyar its Barney Dunnan Award for the Ohio superintendent and school district with the highest Value-Added Gain Index. Magyar’s Student Advisory Committee, comprising students from elementary, middle and high school, empowers students by allowing them to routinely meet with her and share insights from the student body. Moreover, she played a leadership role in implementing a districtwide mental health action plan that will identify and address self-esteem, communication and relationship issues and provide solutions.
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Title: Head of school, Laurel School, Shaker Heights; Most recent education: Master of arts in drama, New York University
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NOTABLE WOMEN IN EDUCATION
Edna McCulloh
Joyce Needham
Anne Nelson
Leah Pusateri
Me
Title: Associate vice president for academic affairs, Walsh University, North Canton; Most recent education: Doctor of Education in higher education leadership, Walden University
Title: Intervention specialist, retired principal, McKeon Education Group, Diocese of Cleveland, Northfield; Most recent education: Master of Education in educational administration, Cleveland State University
Title: Assistant dean of student services, College of Business, Cleveland State University; Most recent education: Master of Education in adult learning and development, Cleveland State University
Title: Community education manager, Ohio Center for Sex Education, Planned Parenthood of Greater Ohio, Bedford Heights
Titl Amb Clev Mas The
The Lee Noel-Randi Levitz Retention Excellence Awards program presented Edna McCulloh with its Gold Award in 2017. “She has learned that the status quo will not suffice if retention and graduation outcomes are to be improved,” said Tim Culver, vice president for student success at nonprofit consulting firm Ruffalo Noel Levitz. “She has learned that when she wishes to innovate student success strategies at Walsh, she must ask two critical questions: How will this benefit students? Will our students care? She knows when she puts students first she can’t go wrong.” Walsh promoted McCulloh to dean of academic services in 2016 and then again two years later to her current position. Under her guidance, Walsh University increased freshman retention to 83% from 74%, multicultural student retention to 77% from 67% and at-risk student retention to 75.9% from 57.8%. She also was key to the school providing 100% online student tutorial support for distance-learning students. In addition, McCulloh co-designed a retention database, developed an integration program to improve the campus connection and engagement of veteran students and created a collaboration to support international students. She also co-created the university’s new Sr. Thea Bowman Scholars Community, designed to help African American students achieve success, and served as an instructor for at-risk students, leading them on a global learning experience to Italy.
Joyce Needham worked for 24 years as a principal at area Catholic schools, where she improved curriculum, developed a strong science department, a kindergarten learning center and an enrichment tutoring program. She worked with local high schools on a robotics program and received the National Blue Ribbon of School Excellence Award, a U.S. government award that honors schools that reach high levels of student achievement and demonstrate progress toward closing gaps between students of differing backgrounds. “Joyce is a giant in Catholic education,” said Sister Erin Zubal, assistant principal at Cleveland Central Catholic High School. “She has always and continues to be a champion for educating children, especially children on the margins of society who experience poverty and have special learning needs.” Needham is a member of the Association of Supervision and Curriculum and Development, National Catholic Education Association, Catholic Elementary Principal Association, National Council of Teachers of Mathematics and National Elementary Principal Association. Retired as a principal, Needham is now a consultant at McKeon Education Group, where she supervises intervention specialists to help ensure that all students can learn. She also is a mentor to new teachers and principals in the Diocese of Cleveland, assisting them in reaching their full potential by sending them to workshops, co-teaching and encouraging them to pursue higher degrees in administration or other specialties
Tim DeGroot, a professor in the department of management at the Monte Ahuja College of Business at Cleveland State University, said he is “amazed” at the amount of quality work Anne Nelson accomplishes at CSU. “Anne is a very intelligent woman who will excel in everything she does. She works very well with all faculty members, and this is a testament to her ‘smarts,’ since we are an eclectic group,” he said. With support from Cleveland-area business leaders, the high-profile student engagement events Nelson developed for business students resulted in graduate enrollment growth of 11.5% from May 2018 to May 2019, as well as undergraduate enrollment growth over the past five years. The engagement events Nelson launched include internship, co-op and career expos; a banking industry and workforce development symposium; a business major to career connection series; a career readiness community learning program; Women in Business: Today and Tomorrow; and Diverse Professors: From the boardroom to the classroom. Nelson looks for solutions to common but unnecessary problems. She addressed long waits and overcrowded advising services by creating CSU’s Quick Biz Advising by Appointment Program. She also made it easier for working adults to attain business degrees by developing the college’s online Bachelor of Business Administration program and improved efficiency of petition and scholarship applications by creating online processes.
Leah Pusateri earned two promotions in 2018 alone for passionately striving to cultivate positive change in underserved communities. “She reaches out daily to young people, in their neighborhoods, to expand their access to accurate and complete information about reproductive health care,” said Iris Harvey, president and CEO of Planned Parenthood of Greater Ohio. Pusateri developed and implemented training programs for educators and youthserving professionals on topics such as creating an inclusive classroom environment and how to be an “askable” adult. She and her staff have provided comprehensive sexual health curricula to adult learners and more than 1,000 students in Cleveland Public High Schools. Her team uses a fee-for-service model to provide classes to private institutions at cost and to subsidize schools and community-based organizations that cannot pay. In addition to her work for Planned Parenthood, Pusateri is a consultant program coordinator for the Center for Community Solutions, where she guides area youth in advocating and encouraging others in their health and wellness goals. “Leah handles the topic of sex education — including the puberty basics and integral information about consent, healthy relationships and decision-making — gracefully with our local teens. As a parent, I am grateful to have her in our community, because our kids need trusted resources for these sensitive and important conversations,” said Melissa Federman, Treuhaft chair for Health Planning at the Center for Community Solutions.
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Meran Rogers
Shelly Saltzman
Roxanne Sorrick
Susan Stocker
Title: Executive director, Global Ambassadors Language Academy, Cleveland; Most recent education: Master of Business Administration, The Ohio State University
Title: Founder and model education leader, Citizens Leadership Academy schools, Cleveland; Most recent education: Master of Education in elementary education and teaching, John Carroll University
Title: Head of teacher education, Education Department chair, professor and college director of assessment, Hiram College, Hiram; Most recent education: Doctor of Education in teacher leadership, Walden University
Title: Dean and chief administrative officer, Ashtabula Campus, Kent State University; Most recent education: Doctor of Philosophy in curriculum and instruction, Kent State University
Since Crain’s named Meran Rogers to its list of Who to Watch in Education in 2014, the founder of Global Ambassadors Language Academy (GALA), a Mandarin and Spanish immersion elementary school, has raised more $2.5 million in federal funding. Rogers recognizes that people who speak more than one language show improved memory, problem-solving and critical-thinking skills; enhanced concentration; better ability to multitask; and better listening skills. “Meran’s vision for education, with an emphasis on global learning, is so inspiring to me,” said GALA student enrichment administrator Jeanette Garcia. “Her passion for families, especially children, regenerates my faith in academic leadership.” Rogers understands that, in addition to a challenging school-day curriculum, students need engagement and care before and after school. GALA’s out-of-school programs give parents flexibility and provide opportunities for students in art, reading, homework help, chess, dance and music, STEM and more. Named Educational Administrator of the Year in 2019 by the Southern Christian Leadership Conference, Rogers also is a member of the Visiting Committee for the Office for Inclusion, Diversity and Equal Opportunity (OIDEO) at Case Western Reserve University. “Meran … knows what it’s like to be a minority on campus. That experience, combined with her work in K-12 education and involvement in the community, provides a critical perspective to the work of the Visiting Committee of the Office of Inclusion, Diversity and Equal Opportunity,” said Marilyn Sanders Mobley, vice president of OIDEO.
Shelly Saltzman is redefining middle-school education in Cleveland through her three Citizen Leadership Academy (CLA) charter schools. A fourth school is coming to the Lee-Harvard neighborhood. Saltzman selected the EL Education model, which she continually refines to make learning active and applicable, to close achievement and opportunity gaps for Cleveland students who often have limited educational opportunities. Students at her schools do not passively listen to lectures or complete workshops. They interview community leaders, plan protests, develop lessons to teach each other and sit at tables to work together in groups, much as adults do when they tackle an issue on the job. Further addressing what works over what’s traditionally been done, Saltzman moved her schools to a reparative restorative justice model from traditional punitive discipline. In 2018, Verizon selected CLA as an Innovative Learning School and provided its students with iPads with data plans so they could complete homework and other projects. CLA also developed a partnership with the Lerner Research Institute to expose students to STEM careers, which has allowed students to write successful grant applications, publish books and present social-justice and climate-change proposals at City Hall. Additionally, Saltzman serves on the advisory board of Facing History and Ourselves, Cleveland, where she supports the mission of combating bigotry, hatred and antisemitism through education. “Shelly believes in the creative spirit of students and has ensured that their voice and their agency is at the center of each school in which she has been a leader,” said Mark Swaim-Fox, executive director of Facing History and Ourselves, Cleveland.
Roxanne Sorrick has received the Paul E. Martin Award three times during her tenure, for both her faculty teaching models and for introducing diversity to educational life at Hiram College. She designed a system for internally and externally analyzing each program within the college and worked with a colleague to acquire feedback from faculty, staff and students to better implement the New Liberal Arts initiative. Sorrick and others observed that some Hiram students wished to pursue museum education, outdoor education and other nontraditional educational programs the school did not offer. Consequently, she took a leadership role in developing an educational studies program that enables students to not only take coursework in foundational areas of education but also to design individualized areas of concentration. Sorrick was also integral to implementing a mobile technology program for education students that led to the college’s Tech and Trek program, where colleagues held sessions focused on teaching and learning with technology. Sorrick looks to enhance education outside of Hiram College as well as a member of the Education Advisory Council for United Way of Portage County as it transitioned to a major new funding model. “She provided expertise as we evaluated data on critical education needs in our county and recommended best practices for their improvement,” said Kathryn Craig, former director of the Career Center at Hiram. “As one of only a few educators on the Advisory Council, her commitment contributed to the successful creation of a new model to meet critical needs of community residents.”
Under Susan Stocker’s leadership, the Ashtabula campus of Kent State University has experienced unprecedented growth. “Dr. Susan Stocker’s leadership and strategic thinking have poised our campus to grow and develop programs that support our community and the individual careers of students that we serve to educate,” said Julie Senita, senior program director for nursing and allied health at Kent State Ashtabula. “Her passion for excellence and scholarship is evident in everything she is involved with, and this motivates all of us to want to excel in what we do here on campus.” The campus raised more than $6 million to construct the Robert S. Morrison Hall of Health and Sciences, set record enrollment numbers and added nearly 20 new degree programs. These include viticulture and enology degrees in collaboration with the region’s growing wine, hospitality and tourism industry; a Registered Nurse-to-Bachelor of Science in nursing program; and the nation’s first physical therapist assistant accelerated program for certified athletic trainers. Additionally, Stocker developed a Rising Scholars program pairing at-risk junior high school students in the Ashtabula school district with mentors who can help guide them through high school graduation and on to college. Besides creating programs that enhance student learning, Stocker serves on the steering committee for Kent State’s Mothers, Mentors and Muses program, which recognizes female-identifying faculty and staff who made a significant difference in the life of students or colleagues.
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NOTABLE WOMEN IN EDUCATION
Kathleen Sullivan
Crystal Weyman
Mary Beth Zeni
Title: Independent consultant, instructor with University of California, Irvine; former director of organizational development at PRADCO; Most recent education: M.A. in organizational management, University of Phoenix
Title: Professor and chair of biological, geological and environmental sciences, Cleveland State University; Most recent education: Doctor of Philosophy in medicinal chemistry, Purdue University
Title: Associate professor of graduate nursing, Breen School of Nursing, Ursuline College, Pepper Pike; Most recent education: Doctor of Science in hygiene, University of Pittsburgh
Kathleen Sullivan creates comprehensive development programs that facilitate learning and behavioral change, resulting in improved performance to the organization. For the University of California Irvine, Sullivan teaches Organizational Design and Development and Leading Successful Organizational Change, creating curricula that engage students in learning and provoke higher-level thinking. While at PRADCO, Sullivan designed a manager development program that focused on newer managers and incorporated the use of assessments, individual coaching and group development workshops, and engaged the participant’s manager to ensure each person’s goals were met. “Kathy understood our business model and objectives and contributed to our development and implementation of both business and HR strategies that aligned with those objectives,” said Omid Aslani, head of business and digital transformation at HireRight. “She helped drive informed decision-making through data to identify trends, determine root causes of issues and develop effective solutions ranging from employee retention to HR process improvements.” In addition, Sullivan gives back to the community by chairing the Dream It, Be It program with Soroptimist International of Cleveland, a global volunteer organization that economically empowers women and girls by providing access to education. She is responsible for overseeing the planning, execution, curriculum delivery and evaluation of the program conference that will mentor and develop girls between the ages of 14-18.
According to one former student, Crystal Weyman’s impeccable integrity and passion for science make her one of most honorable and admirable human beings. As a mentor to undergraduate researchers, Weyman provides intensive, individualized training that enables students to become truly capable scientists. She has been a mentor to junior women faculty with the College of Sciences and Health Professions (COSHP) and strives to increase the number of women of various backgrounds as faculty members. Weyman also strives to make CSU more efficient, advocating elimination of under-enrolling programs, facilitating a contract to save the COSHP 27% on service contracts, and collaborating to coordinate a $6 million renovation of the undergraduate teaching labs and a $7 million renovation of a common equipment facility and several graduate teaching/ research laboratories. On top of that, she established a research collaboration between CSU students and the Cleveland Clinic’s Lerner Research Institute. “She was able to establish and keep at CSU an impressive research program, while providing exceptional service to our faculty and students that also took her to several prominent leading positions at the university,” said Anton Komar, professor in the Department of Biological Geological and Environmental Science and director of the Center for Gene Regulation in Health and Disease at CSU. Weyman’s efforts as a board member and CSU site chairwoman have been instrumental to the success of the Northeastern Ohio Science and Engineering Fair, which allows middle and high school students to delve into the world of science and engineering research and compete to advance to national competitions.
Mary Beth Zeni’s innovative and successful curriculum development strategies led the associate dean of graduate nursing at Ursuline to request that she advise other faculty members on their curricula. In response to market demand, Zeni developed hybrid teaching methods that sometimes combine classroom and online instruction. And although adult learners requested daylong Saturday classes, she recognized she would need to employ interactive and collaborative teaching strategies to keep them engaged. “Dr. Mary Beth Zeni inspires leadership and inquiry in graduate nursing students through an inclusive classroom environment that motivates students to pursue their academic interest through her creative curriculum design and innovative use of technology,” said Janet Baker, associate dean of graduate nursing programs for Ursuline College. “She mentors students and colleagues to confidently prepare for presentations at national conferences and supports them in developing manuscripts for publications.” Additionally, Zeni uses her decades of experience in analyzing population health data as a member of the Cuyahoga County Board of Health Opioid Taskforce (CCTOF) and the Ohio Injury Prevention Partnership’s Prescription Drug Abuse Action Group of the Ohio Department of Health (OIPP/ PDAAG). “She jumped right into a leadership role for our policy subcommittee, taking on the role to create a school survey around implementation of Naloxone in a school setting. This survey will inform the white paper that she has also volunteered to spearhead,” said April Vince, policy chair of OIPP/PDAAG, cochair of (CCTOF) and program manager of the Cuyahoga County Board of Health.
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THE LIST
Employee Benefit Services Firms Ranked by number of full time local professionals
THIS YEAR
COMPANY
LOCAL BENEFITS PROFESSIONALS TOTAL NE CLIENTS IN NE COMPENSATION OHIO EMPLOYEES OHIO (%) STRUCTURE 2019 2018
SERVICES
TOP LOCAL EXECUTIVE
1
Oswald Cos. 1100 Superior Ave., Cleveland 44114 (216) 367-8787/oswaldcompanies.com
156
145
337
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Employee benefits strategic consulting, group benefits brokerage, human capital strategies, health and wellness management, retirement plan consulting
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134
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138
5
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Administration of life and health insurance programs for employers, financial institutions, affinity groups and insurance company partners
David L. Selman, president, CEO
3
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120
120
155
NA
Project, commissions, fixed fees, hourly, retainer
Benefits strategy, design and pricing; pharmacy benefit management consulting; benefits administration and exchange; communication and change management
Gina Kashuk, senior director, office leader, Cleveland
4
CBIZ Inc. 6050 Oak Tree Blvd. S., Suite 500, Independence 44131 (216) 447-9000/cbiz.com
107
110
268
NA
Fixed fees, commissions
Group health benefits consulting and administration, retirement plan solutions, payroll, COBRA, flex, property and casualty, life insurance and HR consulting
Michael P. Kouzelos, president, benefits and insurance
5
Arthur J. Gallagher & Co. 1111 Superior Ave., Suite 1601, Cleveland 44114 (216) 623-2600/ajg.com
88
84
89
85
Fees, commissions
Brokerage and consulting in health and welfare, retirement, wellness, human resources, compensation, health care analytics, benefits compliance
David D. Kempton, Ohio president
6
Findley 1660 W. 2nd St., Suite 900, Cleveland 44113 (216) 875-1900/findley.com
87
80
87
80
Fee-for-service based on hourly rates
Health and group benefits, retirement consulting, actuarial services, defined contribution plan recordkeeping, defined benefit plan administration
Nancy Pokorny, principal
7
OneDigital Health and Benefits (formerly Alpha Group) (1) 4200 Rockside Road, Independence 44131 (216) 520-3300/onedigital.com/team/cleveland-oh
59
58
64
90
Commissions, fixed fees
Strategic advisory services, analytics, compliance support, HR capital management tools, comprehensive insurance offerings
John Wain, managing partner, Jim Schade, Adrienne Vichill, Kevin Mackay, Blair Larrance, principals
8
Mercer 200 Public Square, Suite 3760, Cleveland 44114 (216) 830-8000/mercer.com
53
53
53
NA
By project, commissions, fixed fees, hourly rates
Retirement and risk management, health and welfare benefits, investment consulting and management, talent strategies and management
Jessica Kachur, wealth office leader (2)
9
The Fedeli Group 5005 Rockside Road, fifth floor, Independence 44131 (216) 328-8080/thefedeligroup.com
50
55
92
80
By service, commissions, fixed fees
Employee benefit plan design including consulting, compliance, wellness, self funding and data analytics, voluntary and executive benefits, group purchasing
Umberto P. Fedeli, CEO
10
NFP 4700 Rockside Road, Suite 540, Independence 44131 (216) 264-2707/nfp.com
36 (3)
25
49
80
Fees, commissions
Corporate benefits, property and casualty, private client group, HR technology solutions and retirement
Jim Dustin, managing director
11
Skoda Minotti 6685 Beta Drive, Mayfield Village 44143 (440) 449-6800/skodaminotti.com
35
28
196
69
By project, commissions, fixed fees, hourly, retainer
Benefits, compensation, 401(k), Affordable Care Act planning and compliance, benefit plan audits, retirement plan design and administration
Gregory J. Skoda, chairman
12
USI Insurance Services LLC 1301 E. 9th St., Suite 3800, Cleveland 44114 (216) 591-0088/usi.com
30
27
42
80
Commissions, fixed fees
Employee benefits strategic consulting, group benefits brokerage, population health management, retirement plan consulting
Matt Baird, president, Employee Benefits
13
Trinity Pension Consultants 202 Montrose West Ave., Suite 310, Copley 44321 (330) 668-3747/trinitypension.com
30
24
35
70
Retainer, fixed fees, by project
Actuarial consulting, administration, plan design, plan documents
Anthony J. Warren, principal
14
CPI-HR 6830 Cochran Road, Solon 44139 (440) 542-7800 /cpihr.com
30
30
32
80
Consulting fees, commissions, administration fees
Human capital management firm combining consulting, brokerage and administration
Jim Hopkins, president
15
Huntington Insurance Inc. 200 Public Square, Cleveland 44114 (888) 576-7900/huntington.com
27
26
52
40
Commissions, fees
Consulting and strategic planning in population risk management, on-site clinics, data analytics and predictive modeling, results-based wellness and health care reform
Craig Mottice, executive vice president, managing director, Northeast Ohio
16
BDO 32125 Solon Road, Solon 44139 (440) 248-8787/bdo.com
26
20
98
90
Fixed fees
Recordkeeping, TPA administration, retirement plan funding, medical plan design/consulting, discrimination testing, government filings, ERISA compliance
Robert M. Littman, Ohio managing partner
17
Chapman & Chapman Inc. 2307 E. Aurora Road, Suite B13, Twinsburg 44087 (440) 287-7600 /chapmanandchapman.com
25
25
31
93
Commissions, fees
Employee benefits strategic consulting, benefits brokerage including voluntary and worksite, retirement plan consulting, executive benefits
Walter K. Chapman, CEO
18
Todd Associates Inc. 23825 Commerce Park, Suite A, Beachwood 44122 (440) 461-1101/toddassociates.com
24
23
62
80
Commissions, fixed fees, project based
Health insurance, disability insurance, dental insurance, vision insurance, life insurance, executive compensation/ benefits, section 125 plans, wellness programs
Edward J. Hyland Jr., president
19
Buck Global LLC (formerly Conduent) (4) 6000 Freedom Square, Suite 100, Independence 44131 (216) 642-4254/buck.com
23
24
24
80
By project, commissions, fixed fees, hourly rates
Health and productivity, retirement, communications, compensation, benefit audits, benefit outsourcing
Audrey Cervas, director
20
Althans Insurance Agency Inc. 543 E. Washington St., Chagrin Falls 44022 (440) 247-6422/althansinsurance.com
20
20
55
80
Commissions, fees
Risk consulting and management, plan design and compliance, group medical, disability, dental, life and vision insurance
James C. Althans, president, CEO
21
Vantage Benefit Advisors Inc. 6200 Rockside Road, Independence 44131 (216) 642-7878/vanfinbenefits.com
17
13
68
95
Commissions, fees
Insurance, compliance, human resources and technology, flex benefits, retirement plans, Medicare supplements
William McCormick, CEO
22
PK Financial Group Inc. 9261 Ravenna Road, Unit B4, Twinsburg 44087 (216) 393-8182/pkfinancialgroup.com
17
17
24
70
Fees (percent of assets managed); commissions
Retirement plan consulting services for the for-profit and not-for-profit sectors
Pete Kaplan, president Brian Petros, CEO
23
Noble-Davis Consulting Inc. 6190 Cochran Road, Suite D, Solon 44139 (440) 498-8408/nobledavis.com
16
16
22
95
Fixed fees plus hourly rates for special projects
Retirement plan consulting, plan design and administration, welfare plan documents and filing
Jan L. Davis, president
24
DS Benefits Group 3555 Reserve Commons Drive, Medina 44256 (330) 725-0501/dsbenefitsgroup.com
14
13
16
97
Fixed fees, commissions
Customized insurance brokerage services, including government regulations and compliance, strategic planning, benefit design and financial analysis.
Dino Sciulli, president
25
Brewster & Brewster Inc. 370 Blackbrook Road, Painesville 44077 (440) 951-8889/brewsterandbrewster.com
13
13
18
90
Fixed fees
Plan design and adminstration for 401(k) and cash balance/defined benefit plans; retirement plan repair shop
Donna Brewster Jane Brewster, owners
26
Stellar Benefits Group 30775 Bainbridge Road, Suite 100, Solon 44139 (440) 893-9882/stellarbenefitsgroup.com
13
13
13
85
Commissions
Employee benefits brokerage and consulting firm
Ron Rafal Alan Greenberg, principals
RESEARCHED BY CHUCK SODER (CSODER@CRAIN.COM)
Get all 35 firms and more executive names in Excel format. Become a Data Member: CrainsCleveland.com/data When ties occur, firms are ranked by total local employees. Information is supplied by the companies. Send feedback to Chuck Soder: csoder@crain.com.
(1) Atlanta-based OneDigital announced in January 2019 that it acquired Alpha Group Agency Inc.; Alpha Group’s Westlake division was not part of the deal. (2) Kachur is based in Pittsburgh but oversees Mercer's Cleveland office. (3) NFP's employment numbers increased because in December 2018 the company acquired BD Capital, which has two local offices, and River Financial Benefits of Rocky River. (4) Conduent sold Buck Consultants in May 2018 to
H.I.G. Capital.
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797 Residence set to open in Middlebury By Dan Shingler dshingler@crain.com @DanShingler
Businessman-turned-developer Nick Pamboukis has something not many others can tout. Not only did he just convert a former senior living center at 797 E. Market St. in Akron into high-end, market-rate apartments and a restaurant, he has a project that will be done on time. It was almost exactly a year from Pamboukis unveiling his plans and a projected 12-month timeline to him signing his first tenant earlier this month. “We did it mostly ourselves with a crew of about 15 guys,” Pamboukis said, grinning while giving a tour of the building, now dubbed 797 Residence. He’s trying to bring an upscale addition to one of Akron’s oldest neighborhoods, Middlebury. There, a mix of empty lots and dilapidated homes slowly are giving way to redevelopment efforts by organizations such as The Well, a community development corporation; billionaire Stuart Lichter’s Industrial Realty group, which is developing the nearby East End from the bones of former Goodyear facilities; and now Pamboukis. Pamboukis is probably best known for his primary business, Heritage Industrial Finishing, an industrial coating and finishing company in Akron that he purchased in 2007. He’s invested in other apartments before, but this is his largest and most involved project. He was drawn to it because it was his grandmother’s residence when he was 7 or 8 and he visited nearly daily. He purchased the former three-story senior living center, vacant and in mild disrepair, a little more than a year ago for $350,000, he said. Since then, he’s put more than $2 million in improvements into it and created 42 apartments on the second and third floors, along with a with a first-floor restaurant called Alexander Pierce — named after Pamboukis’ sons. He said the eatery should be open before the end of summer, as
The 797 Residence brings upscale apartments to Akron’s Middlebury neighborhood. Here is an inside look at one of the units in the building, which will have a ground-floor restaurant. (Contributed photo)
soon as its liquor license is approved. Pamboukis said he's preparing to list the units and begin showing them, but already has signed a first tenant: a loPamboukis cal aerospace engineer who took a corner unit. He still has another 18 units, a gym and some other amenities, such as storage units, to build on the first floor. He’s going after fairly high rents, at least by Akron standards. The building has 680-square-foot, one-bedroom units at $975 a month and two-bedroom units at $1,150 a month to $1,550 a month. The twobedroom apartments range in size from about 1,100 square feet to 1,340 square feet, and have either one and a half or two baths. Some units have corner views. Jason Segedy, Akron’s director of planning and urban development, said the median rent in Akron is $682 a month, according to the U.S. Cen-
sus Bureau’s most recent American Community Survey. But that includes all sorts of rentals, including a lot of single-family homes, and close to half of the housing units in the city are renter occupied, Segedy noted via email. As for apartments, recent rents have been coming in at just more than $800 per month, said Brian Gage, executive director of the Akron Metropolitan Housing Authority (AMHA), which he said uses more recent data than are available to federal statisticians. Gage also noted he’s looking at average figures, and that newly rehabbed luxury units fetch significantly more. Rents have been on the rise in Akron in recent years, and are up about 9% in the past decade, despite the city and region losing population, Gage said, adding he thinks the city overbuilt its student housing when it expected the University of Akron to grow. Much of that housing is not useful for families, so there’s still a shortage of nonstudent, multifamily developments. Gage said that’s one reason he’s glad to see new housing like Pambou-
kis’ project appear. Although it’s too pricey for the subsidized housing with which AMHA normally works, it increases the general stock and creates opportunities elsewhere, he said. To get those rents — which Pamboukis said he hopes to increase once the building is partially leased and fully built out with the restaurant open — the building will offer some high-end amenities. Utilities are included and room service will be available from the restaurant, he said. Later, he plans to offer full meal packages and housecleaning services for residents who want them. Cable, high-speed internet and Wi-Fi will be included, too. In addition, security includes a facial-recognition system at the building’s main entrance, and live video so occupants can see who they’re buzzing in. Each floor has its own free laundry facilities, and residents will have access to a fully equipped gym downstairs, which is now under construction, Pamboukis said. As for the restaurant, it’s nearly ready, said chef Frank Hill, who lists stints at Alliance Country Club and the Canton Club among his past
kitchen duties. Hill said he’ll offer an upscale mix of American and Italian-influenced dishes with a menu centered on steaks, seafood and pasta. He said he likes the size of the 84seat space and the opportunity to work with residents who hopefully will become regular patrons. The restaurant will be open to nonresidents, too. “It’s the right size. You can really focus on the quality,” Hill said. And while rents at 797 Residence might be higher than average, they aren’t unheard of in Akron or even in the Middlebury neighborhood itself. At the East End development, rents are listed at between $820 and $2,800 a month, and Lichter said he’s had no trouble leasing apartments. “We’re still doing more units — you probably know that — because we still think there’s more demand,” Lichter said. “We have about 106 now and we’re doing about another 70.” He noted that the original units are fully occupied. While one could argue the two projects might compete with each other, there’s also an argument — favored by Lichter and Pamboukis — that they will work together, along with other developments and renovations, to create a critical mass of people to support a social scene in Middlebury. Like the Bowery and other downtown Akron projects, these in Middlebury are hoping to create a community and level of activity that ensures their own success. So Lichter said he hopes Pamboukis succeeds and inspires others to follow suit. “We view anything like that as a huge positive,” Lichter said. “We were hoping people would come in and fill in, especially the space between us and downtown. … The more the merrier. We think East End is going to continue to grow. We’re continuing to sign office tenants and the restaurant is opening in the next month or two.” Lichter also said there’s room in the market for the building, which, notably, is beating some downtown projects to market. “He should do just fine,” Lichter said of Pamboukis and his project.
Region’s toy companies find life after Toys R Us By Judy Stringer clbfreelancer@crain.com
What a difference a year makes. Last summer, local toymakers were reeling from the loss of Toys R Us. The mega-retailer’s late 2017 bankruptcy was a shock to toy vendors around the world, but locally it sent a wave of uncertainly through northern Summit and Portage counties where three companies — all founded by Hudson resident Tom Murdough — employ more than 1,000 workers who make, market, package and ship rotational-molded plastic playhouses, kitchens, cars, water tables and an assortment of other home and play equipment. Twelve months later, executives from Little Tikes Co., Step2 Co. and Simplay3 say the business slump brought on by the closing of the Toys R Us chain's 800 stores is largely a thing of the past.
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Larian
Ciepiel
In fact, Step2 and Simplay3, both based in Streetsboro, are seeing growth in their toy revenue. Even hard-hit Little Tikes of Hudson — the largest U.S toy factory — is ramping up production lines after manufacturing capacity dipped below 25% last year, according to Isaac Larian, CEO of privately held MGA Entertainment, which owns Little Tikes. And Toys R Us itself announced plans to open about a half-dozen smaller-format U.S. stores and an e-commerce site by the holiday season, Bloomberg reported last week.
McDonald
“It is slowing coming back,” Larian said. “We think we are going to get back to about 45% to 50% (capacity) by the end of year because the (Little Tikes) brand is performing so
well.” The road to recovery, however, has been bumpy. Toys R Us sales accounted for 40% of Little Tikes’ sales, Larian said, and MGA’s bottom line took a 12% hit in 2018 as a result of the toy chain’s demise. Shifting Little Tikes business to other brick-andmortar stores was one of the biggest challenges. “Don’t forget, Toys R Us was an $11 billion business just in toys, and other retailers typically do not have the kind of space they had for these large plastic toys,” he noted.
Step2 CEO Tony Ciepiel said the first half of 2018 was especially troublesome. Not only did the company lose a significant channel when the Toys R US bankruptcy hit — about 25% of Step2’s toy sales filtered through Toys R Us — but “we literally had a couple of aisles of product at each of its stores, millions of dollars of product,” he said. “Over a four- to five-month period when they were selling their stock off, we were competing on price with them, and they were selling on discount products that they never paid us for,” Ciepiel said. “It was the worst of all worlds.” Brian McDonald, vice president of sales and marketing at Simplay3, said that by virtue of its size, the 3-yearold company was less affected by the Toys R Us closure than its older, more established siblings. Still, the impact was not negligible. “We did have a program that we had started to ship to Toys R Us, so we
had product out the door and planned to ramp up our business based on the success we had seen there,” McDonald said. “In the end, it was a significant six-figure loss for us.” All three executives claim growth in digital sales is filling much of the gap Toys R Us left behind. According to Ciepiel, Step2 had “spent the previous 10 years building a very strong direct-to-consumer shipping capability.” Thus, he said, the company was able to quickly shift its top sellers at Toys R Us to online channels such as Amazon, as well as the online stores of popular brick-and-mortar retailers like Kohl’s, Target and Walmart. Today, the Ciepiel said, 75% of Step2 toys — of all sizes — are sold through digital channels, including its own online store. That's up from less than 60% two years ago and outpacing the industry average, which is more like 65%. SEE TOYS, PAGE 25
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Higgins saw the same damage when he recently visited Northwest Ohio. “I drove for miles and miles, and I could count on one hand how many fields I saw planted,” he said.
All wet, all year Farming has always been a gamble, and this year no one is winning. There are so many decisions for farmers to make: when to plant, what to plant, how much to plant, when to buy and sell. One thing, though, is pretty certain in Ohio: If you are going to plant, the crops need to be in the ground by the first week in July. That hasn’t happened on many Ohio farms. “Trust me, every single farmer in Ohio wants to plant a crop,” Higgins said. “Once you get into the first full week of July, you might as well say you’re not able to get it done. You get closer to a frost date in the fall and those crops simply won’t endure the cold weather that’s coming.” Compounding issues, the wet spring is part of a larger saturation trend. The period from June 1, 2018, to May 31, 2019, is the wettest yearlong span in Ohio since 1895. Average rainfall across the state totaled 52 inches, about 10 inches above the
COLUMBUS CONTINUED FROM PAGE 1
Although Cleveland-area builders and developers often pursue deals to the south, the reverse has not been the case. The prior primary example of a real estate development by a Columbus developer here was Joseph Skilken & Co., which constructed three buildings at South Hills Office Park in Broadview Heights during the 1990s office boom. After two urban projects in Columbus, The Julian and The Barrett, Turnock said Casto considered where it might find similar contexts. “It was a natural to look within a two-hour drive,” he said. In 2017, it opened Baldwin, partially in an old piano factory, in Cincinnati, and then competed for the former Lakewood Hospital redevelopment. After the city of Lakewood opted for Westlake-based Carnegie Development, Casto considered other sites. “We like places that have a distinct identity, a neighborhood feel,” Turnock said. “For us, Ohio City was a no-brainer.” Yaromir Steiner, founder and CEO of Columbus-based Steiner + Associates, is likely one of the best-known contemporary developers in the nation following projects such as Easton Town Center and others, including one near Ohio State University. His firm is part of a team with Axiom Development of Beachwood
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its” for the toy business and anticipates “double-digit growth” collectively among Step2’s three business units. The company also makes children’s furniture and home and garden products such as mailboxes and trash bins. Simplay3’s McDonald credits the Toys R Us meltdown for keeping the startup from falling into what he called the “old-school toy model,” where manufacturers ramp up production and send truckloads of product to sit in retail distribution centers or on store shelves. “It forced us to see the value in staying lean and nimble,” he said.
“So, nearly from the beginning we Us disruption, he said. Revenue for There were no layoffs in 2018 when Advertising Section were focused on building our inven- the 80-person company grew by the Hudson plant lost capacity, actory to almost a just-in-time method 500% last year, and McDonald antici- cording to Larian, and he does not To place your in Crain’s Cleveland Classifieds, expect to downsize this year. MGA of shipping out product directly to listing pates a similar return in 2019. the consumer via the Suzanne dot-com.” Janik at also is piloting production of a plastic Larian is less bullish or about Little sjanik@crain.com contact 313-446-0455 email At the same time, McDonald add- Tikes’ comeback, but far from pessi- pink carrying case for its popular ed, Simplay3 paid special attention mistic. Like his peers at Step2 and L.O.L Surprise dolls at the Hudson to servicing small mom-and-pop toy Simplay3, he said retailers were ea- plant. The case was previously manushops and midsize regional chains. ger to scoop up some of the $11 bil- factured in China, he said, and if the The stores had previously been ne- lion market Toys R Us left behind, pilot is successful, it could usher in glected by the big plastic toymakers, with many quickly integrating Little more L.O.L. manufacturing at Little according to McDonald, because Tikes products online when shelf Tikes. In addition, he hopes to build on space was not available. He is particthey didn’t have the floor space. Overseas sales and nontoy offer- ularly thankful to Target, which re- the plant’s contract manufacturing ings — “home helpers” such as step- cently introduced mini-Little Tikes business to help fill the gap. “We still have a lot of room for stools and wheelbarrows — also pro- showrooms into its brick-and-mortar plastic manufacturing,” he said. pelled Simplay3 despite the Toys R stores.
mean for the past decade, according to Aaron Wilson, climate specialist for Ohio State University’s College of Food, Agricultural and Environmental Studies. Many problems Ohio farmers face this year started in fall 2018, Arters said. “We had a good start to harvest, then come November it started raining a bunch then it got cold,” he said. “It’s really tough to harvest in the mud, but you’ve got to do it, because you got to get the crops off ... when you do that, you rut up your fields.” Those ruts remained until the spring on land farmers were unable to till because of the wet fall. “So we got ruts and tillage that was never done last fall because it got wet,” Arters said. “That compounds and then we had a wet spring but we had double the tillage we needed to do because that tillage should have been done in the fall.”
crops expected based on the farm’s averages, insurance kicks in, with a typical plan covering 80%. But the weather has even affected the yield on insurance because many farmers were unable to plant by the June 5 full-coverage insurance deadline for corn, or the June 20 deadline for soybeans. Every day past those deadlines, coverage drops 1%. If a farmer cannot plant, as Arters couldn’t with 100 of his acres, the coverage for the “prevented plant” falls to 55% to 60%, depending on the crop.
CLASSIFIEDS
“When you consider the company does not make any product smaller than a large cooler, it is pretty amazing that 75% of our sales are being shipped direct to consumers,” he said. “We are essentially an e-commerce company.” Largely because of those online sales, Step2’s toy business is up “a couple of percent” in the first half of 2019, Ciepiel said, “while the industry is down 4% to 5%.” He expects to end the year in the “high single dig-
|
Farm aid
Arters is grateful he was able to plant 80% of his acreage this year. For the 100 acres he was unable to plant, he will claim the “prevented plant” provision of his crop insurance, he said. “If there was any year on record that proves the value and worth of crop insurance, it’s going to be 2019,” Higgins said. Here’s how crop insurance works: If a farmer is hampered by deadlines for planting and doesn’t yield the
U.S. Sen. Rob Portman, R-Cincinnati, and U.S. Sen. Sherrod Brown, D-Cleveland, on June 21 urged U.S. Secretary of Agriculture Sonny Perdue to provide disaster relief for Ohio. They were right to call for it and the federal government should send the cavalry immediately. “According to the National Agricultural Statistics Service (NASS), as of June 16, 2019, only 68 percent of Ohio’s corn and 46 percent of Ohio’s soybeans have been planted, compared to this time last year when Ohio corn and soybean planting rates were at 100 percent and 94 percent, respectively,” they wrote. “Farmers in the wettest counties are now faced with the reality that many acres will likely go unplanted.” Ohio Gov. Mike DeWine in mid-
pursuing a mixed-use redevelopment of the 65-acre Beech Brook site in Pepper Pike. Steiner himself spoke to the City Council there on April 24. Steiner said in a phone interview on June 20 that his company is participating because it cooperates with people planning projects that meet its goals to work on place-making projects that improve communities. However, Steiner reflected on the attractions of Cleveland for Columbus developers as a group, even though Northeast Ohio lacks the population growth of Columbus. “The (population and business) growth in Columbus is significant,” Steiner noted, “and that attracts a lot of developers. In Columbus, there is NIMBYism (Not In My Back Yard). If you already have five or six projects in Columbus, why not look at Cleveland with your well-oiled machine?” Rob Vogt, a partner at the housing consultancy Vogt Strategic Insights of Columbus, estimated that the pace of housing activity in Columbus is twice that of the Cleveland-Elyria-Mentor MSA. However, Vogt said real estate developers are now focusing on what he calls “micro-neighborhoods” such as Tremont, Ohio City and Lakewood, where there is a population demanding additional housing, in large part because of the feel of the neighborhood or, in Lakewood’s case, the strength of its school system. The other factor attracting central staters is the run-up of rents in newly opened projects in or near down-
town Cleveland. Vogt said enough projects in Cleveland have been successful to attract other developers. The region’s decades-old rep as a low-rent, multifamily market now has a very big asterisk beside it, despite the region continuing to be seen as a cellar dweller in many realty rankings. RealPage, a Richardson, Texasbased apartment management software provider, ranked downtown Cleveland as having the fifth-highest premium for living downtown in the nation. RealPage reported the city’s “urban core average” rent of $1,376 monthly is 53% more than the $900 monthly average. Turnock said he has not been able to “get his head around” why Cleveland-area landlords are better able to push rents than those in Columbus. Part of the answer is likely competition. Marcus & Millichap, the global realty investment brokerage, estimates 4,100 units will be completed in the Columbus MSA this year compared to 5,200 in 2018. By contrast, it forecast 1,600 completions this year in the Cleveland area and 2,000 last year. No wonder downstate developers will give Cleveland a whirl. Joseph McCabe, a vice president at Woda Cooper Cos., is a native of Buffalo, N.Y., who spent a decade working for Cleveland architecture and development firms before joining the Columbus company. His firm is currently completing Prospect Yard, the conversion of an old commercial
Crop insurance assurance
June visited devastated farmers in Northwest Ohio and requested a U.S. Department of Agriculture disaster designation so that assistance can be made available for Ohio farmers. That, too, is a no-brainer. While farmers still await word on those federal-level disaster designation requests, Higgins of the Ohio Farm Bureau is hopeful the state will see financial aid coming from a disaster relief bill recently passed by Congress and signed by President Donald Trump on June 6. The legislation provides $3 billion for the Agriculture Department for flooding that happened earlier this spring in the Midwest. “If there’s any funds left over in the $3 billion going to those earlier states, it will go to other states like Ohio that have seen this difficulty getting plantings in,” Higgins said.
Rain isn’t the only problem. The uncertainty from extreme weather, as well as U.S. trade disputes with China, Mexico and other countries, is taking a toll on the farming community, Higgins said. Lower yields when farmers are unable to plant means lower income. While some of the losses brought on by the trade wars have been offset by federal aid, it often means that farmers only break even. “We had great trade all over the
world, but that has gone away over the past year and a half and farmers are suffering because of it,” Higgins said. “So they are not going to turn away those checks, but they would rather have trade than aid at this point. “You hear all the time in the business world how great our economy is doing and how wonderful America is doing with our bottom line, but in agriculture it’s been just the opposite,” he said, adding that since 2012, agricultural income has been on the decline. Some people will stop farming after this year, he fears. “There are so many things that are compounding the issue, and farmers have been hanging on by a thread for the last couple of years. Those that were hoping for a successful 2019 to get that black pen out and put that red pen away — obviously that’s not going to happen this year, and they will not be able to farm next year.” Worse, Higgins worries about the impact on a profession that has one of the highest rates of suicide in the country. “Farmers need to realize that even though they are alone in the tractor wondering what they could have done better to be more successful this year, what’s happened to them is out of their control,” he said. “And they have the full support of all the Ohio community with what’s going on. They need to realize they are not alone and that their crop is not any more valuable than their life.”
building at 1937 Prospect Ave. in Cleveland, to 43 affordable apartments in a $10 million project. “I drove around Cleveland for years thinking of the opportunities there,” McCabe said. “Woda came to Cleveland to fill a hole in its territory. Now, eyes are opening to the idea it’s more than a place to visit the Rock & Roll Hall of Fame and Museum.” Vogt said he thinks part of the change is generational. Older devel-
opers often built garden-style apartments, generally with hundreds of units. They weren’t open to other apartment building types or pintsized urban sites. Another factor is that with continued low interest rates, builders are going to look for more places to build. “The old joke is that developers build if they can get the money. Now, they can get the money and they have a market,” Vogt said.
Tough times for farmers
Advertising Section
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HIMSS
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Groppe said HIMSS will continue to put on events at the Global Center, including the Patient Empathy and Innovation Summit, an annual program it co-presents with Cleveland Clinic that draws 2,000 people, and the IHE Connectathon, a health care technology testing event. Groppe could not say what will happen to the space for the remainder of HIMSS' lease. “We are having discussions with our partners that are not finalized,” she said. In a statement, BioEnterprise Corp., the nonprofit health care and bioscience business accelerator that runs the Global Center, confirmed that HIMSS will continue its relationship with the center. But Aram Nerpouni, president and CEO of BioEnterprise, said that HIMSS, under a new CEO, is changing its approach. He told Crain’s that
instead of bringing health industry information technology professionals to a brick-and-mortar center in Cleveland to learn about the latest in health IT, the organization is moving to a virtual system. “HIMSS has been a great partner during their stay at the Global Center, and the good news is we will continue to have the benefit of their global network and they will continue to hold events here,” Nerpouni said. “Overall, this in no way, shape or form hinders the promising direction of the Global Center or the strategy we are implementing.” BioEnterprise took over management of the Global Center in December 2017 and began moving 25 of its staff from its University Circle headquarters to downtown. At the time, BioEnterprise described its vision of the building as “part incubator, part accelerator, part think tank, a place where industry, investors and innovators gather to solve critical health care problems that no one entity can attack on its own.”
In a statement, BioEnterprise said it has a pipeline of firms interested in taking space at the Global Center and it has an “active schedule” of events and meetings on its calendar. BioEnterprise, the latest in a line of managers hired to put life into the building, has seen some success. When BioEnterprise came to the Global Center in early 2018, only five employees were working day-to-day in the building. For many tenants, it was nothing more than a convenient meeting site. Today, the Global Center headcount stands at 75 and, BioEnterprise said that's growing with new tenants, including TPA Stream, a health insurance administration software company with 4,500 square feet in the Global Center, and Gleeson Construction, a Chagrin Fall builder of health care laboratories, which has an office on the third floor. Other recently added tenants include the North Coast Angel Fund and startups CavoGene LifeSciences, Global Health Metrics and Public Insight.
But the departure of HIMSS will leave a big gap. Too many of the tenants take small spaces and don’t bring full-time employees. They also use the building as a downtown outpost for meetings rather than for their headquarters. Currently, 71% of the 89,986 square feet of leaseable office and laboratory space in the building is occupied. When HIMSS winds down its operations, that will drop to about 46% if no new tenants arrive. That would be a gloomy occupancy rate if the building on Cleveland’s Mall were a typical 6-year-old office building. But that’s not what it is. When conceived, the Medical Mart was supposed to attract doctors and hospital administrators who would come and shop year-round in the showrooms of medical equipment makers to purchase products ranging from mechanized hospital beds to the latest imaging devices and implantable cardiac defibrillators. Supporters hoped the building and its permanent displays of hospital equipment would
make the adjacent, connected convention center, now the Huntington Convention Center of Cleveland, a magnet for medical and health care conventions. As Cuyahoga County leaders contemplated a financing plan for the convention center and medical mart, they were competing with Nashville and New York City to be the first city to open a medical mart. HIMSS was headed for the planned Nashville medical mart before that project died, and it was considered a big win when HIMSS shifted its Innovation Center to the under-construction building in Cleveland. But the idea of being a place filled with showrooms for medical equipment sellers — the Medical Mart — never was able to attract tenants, and the building struggled to find a successful reason for its existence. Former Cuyahoga County executive Ed FitzGerald decided to make it a health science “innovation center” and changed the name to match. As a result, it’s still working to establish an identity.
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PEOPLE ON THE MOVE
To place your listing, visit www.crainscleveland.com/people-on-the-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com.
FINANCIAL SERVICES
HEALTH CARE
LAW
LAW
MANUFACTURING
Ancora
Sisters of Charity Health System
Ziegler Metzger LLP
Nicola, Gudbranson & Cooper, LLC
Kichler Lighting
We are happy to announce that Ms. Candy Wnek has joined Ancora to serve as the main Receptionist for Ancora and our neighboring tenants within the building. Candy will greet and help direct all guests of the building while facilitating deliveries and routing incoming calls. Candy brings many years of experience in office reception to Ancora along with prior experience in accounts payable, billing and collections. We are happy to have Candy join our team and we look forward to working with her.
Adnan Tahir, M.D., joins Sisters of Charity Health System as Vice President of the Primary Care Institute. He will work to build strategic collaborations with adult, family, and internal medicine primary care doctors; enhance physician engagement; develop population-driven models of care; and work with physicians to focus on the social determinants of health. Dr. Tahir will also work to strengthen behavioral health care coordination with primary care and addiction medicine.
Susan Friedman has joined Ziegler Metzger LLP as an attorney in the Estate Planning and Probate group. She represents clients in estate planning, probate, estate and trust administration, elder law, guardianships, special needs planning and charitable planning matters. She has served clients and families throughout Cleveland for over 20 years. She earned her B.A. from Washington University, her master’s in social service administration from CWRU Mandel School, and her J.D. from CWRU Law.
Nicola, Gudbranson & Cooper is pleased to announce Nataly Mualem joined the firm as an associate. Nataly brings with her experience in immigration law and will be joining the firm’s school law practice group. Nataly will advise clients on charter school law and nonprofit governance, immigration and employment law. Nataly received her B.S. from Baldwin Wallace University, her M.S. from Cleveland State University and her J.D. from Ohio Northern University, Claude W. Pettit School of Law.
Jason Johnson joins Kichler Lighting as vice president of eCommerce. Prior to joining Kichler, Jason established and led the eCommerce team at Pacific Cycle (Schwinn and Mongoose). Raised in Indiana, he earned a Bachelor of Business Administration from Boise State University and an MBA from Anderson University. Jason has an appreciation for mountain biking, hiking and spending time outdoors with his wife and sons.
LAW
S&T Bank Ben Bates has been promoted to assistant vice president, commercial banker serving the northeast Ohio region. In this role, Ben’s primary responsibility will be building relationships with existing and prospective customers in the commercial, industrial, and commercial real estate businesses. Ben began his banking career in 2005 and joined S&T Bank in 2015 as a credit analyst. Ben has extensive knowledge of the financial services industry and a keen understanding of the business community.
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LAW
Benesch Tim Flanagan has joined Benesch as the Chief Financial Officer. Tim is an accomplished senior finance executive and CPA, and has two decades of experience leading and advising large global corporations through complex business issues, capital market transactions and domestic and international expansion. Additionally, he has extensive boardroom experience and in-depth knowledge of all aspects of corporate finance.
Nicola, Gudbranson & Cooper, LLC
LAW
Nicola, Gudbranson and Cooper is pleased to announce Matthew M. Stanley has joined the firm as an associate and will be a member of the corporate and estate planning practice groups. Matt advises clients on matters concerning general corporate law, banking, finance, commercial real estate, and estate & business succession planning. Matt received his B.A. from Miami University, his M.B.A. from Indiana University’s Kelley School of Business, and his J.D. from Cleveland-Marshall College of Law.
Seeley, Savidge, Ebert & Gourash Co., LPA Todd Masuda joins SSEG as an attorney in our Business Law Practice. Masuda will continue to serve businesses, owners and nonprofit organizations, with a focus on employment law, commercial contracts, and corporate transactions.
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SOURCE LUNCH
Doug Weintraub CEO, Bounce Innovation Hub
Doug Weintraub has come a long way from the scrapyard to become one of Northeast Ohio’s angel investors and entrepreneurial leaders. ¶ The kid who grew up separating the ferrous from the nonferrous at his father’s scrap metal business in Barberton could have been a fine accountant like his father wanted, but it seemed being his own boss was in Weintraub’s blood. ¶ He figures he’s been involved with a dozen or so startups in the region, beginning with his own Brunswick Integrated Computer Solutions, which he launched in 1986 and sold in 2000, repurchased and then sold again in 2010. ¶ He’s a founding member of JumpStart Inc. and served as its chairman from 2009 to 2012. ¶ Currently, as the CEO of Akron’s Bounce Innovation Hub, he’s charged with growing the city’s business incubator and helping to nurture its clients to success. The job combines two of the things he loves best – entrepreneurialism and Akron – with a slight downside of increasing his golf handicap for lack of practice, he said. ¶ A lifelong area resident, except for a few years when he went to school and lived in Columbus, Weintraub said Akron has all that he’s ever needed to succeed. — Dan Shingler
The Weintraub file Weekend pastime: Weintraub loves grandkids, hiking and golf.
Watch this: He’s a fan of fine watches. They were celebratory purchases when he’s closed a big deal. For food: His favorite place is Ken Stewart’s Lodge, although he still has a soft spot for chicken from Belgrade Gardens in Barberton.
Read for fun: John Grisham
Your father, who eventually went into real estate, ran a business in Barberton, but you grew up in Akron? Yes — born in Akron on the west side, West Akron. Went to Case (elementary), Litchfield (middle school) and Firestone (high school). … Now it’s all changed, though, because the schools have all been rebuilt. How about college? The Ohio State University. I had a degree in computer science and accounting. My major was business, but my focus was computer science and accounting. I’m a CPA. Not many people know that … as a CPA I worked for Coopers & Lybrand. How old are you? I’m 59.
Lunch spot Rubber City’s Remarkable Coffee & Cafe — Bounce Innovation Hub 526 S. Main St., Akron (234) 901-4334
The meal Each had a turkey sandwich with cheese, a side of chips and water.
The vibe A cross between a very good college cafeteria and a Starbucks, Rubber City’s Remarkable is an anchor for the first floor of the Bounce Innovation Hub.
The bill $19.03 at the counter
So you remember computer punch cards and Fortran? Ha! PL/1, Fortran. That’s how I learned. Those punch cards are what we used to use, and some of those applications are still used today on mainframes. … I never used a PC to do any kind of programming. When I did it at Ohio State, there was no business path on the computer side; it was strictly on the scientific side. You left to start a business; your dad owned a business. Did you inherit the gene where you don’t want to work for someone else? Yes. I started in the scrap business very early. When I was young, I would go out and work at the scrapyard, separating the ferrous from the nonferrous with a magnet. … But I wanted to control my own destiny. As I told my father when I left it, I can always be an accountant.
Did he want you to stay an accountant? Absolutely, but he knew I would take a chance and start a business. What was your first business? It was selling automated accounting systems. It was packaged software, so we were what you’d call a value-added reseller. It wasn’t stuff that we wrote. It was stuff that we sold and helped with. ... It was called Brunswick Integrated Computer Solutions, and it was formed in 1986. I stayed with it over the years until I sold it the final time in 2010. You sold it more than once? I sold it, bought it back and owned it a couple times. You’ve done more than one startup. How many do you think? I’ve done probably about a dozen. … I’ve been called an angel investor, a serial entrepreneur — each situation is different. Would you do another? I don’t think so. I continue to invest in businesses, whether it’s real estate or some entrepreneurial businesses. But going it alone, I don’t think so anymore. You’re kind of at a startup now, no? This is startups within a startup, no doubt. And it’s not a simple business. There are a lot of moving parts. How’s work on Bounce’s renovation going? I like to roll up my sleeves and get involved in such projects, and this building is one of them. … I envisioned the first floor based on my experience with other facilities and
capabilities, but it always turns out a little different than you thought. It’s going well, though. We’re trying to integrate it into the community as a community resource to make sure people feel comfortable coming here with their businesses, and so they feel comfortable asking for help — especially with the whole nontech, diverse population that could come here and find help and work with a nontech executive-in-residence to help them with their business. Still got some space left for new tenants? We’re at about 55% now. It’s 300,000 square feet. It’s a huge building ... sizewise, compared to most other buildings out there it dwarfs them — they’re the size of the first floor here. … We’re nine floors. Who talked you into taking this job? I had conversations with (Echogen co-founder) Phil Brennan, that was my initial conversation. Then with (Burton D. Morgan Foundation president) Deb Hoover. Was it a hard sell? No. I think it was just perfect timing, because I was looking to be able to work with entrepreneurs and I wanted an opportunity to work in Akron. I think it just fit as a real estate project, as an entrepreneurial-type project, as a way of working in a field where I have developed this expertise and, again, just working with people. It was perfect timing. Akron needed the assistance on this project, because it’s a major undertaking. I was able to meet with the mayor and have a conversation, and we really hit it off.
CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310 Cleveland, OH 44113-1230 Phone: (216) 522-1383 www.crainscleveland.com Twitter: @CrainsCleveland Publisher/editor Elizabeth McIntyre Group publisher Mary Kramer Managing editor Scott Suttell Sections editor Michael von Glahn Creative director David Kordalski Web editor Damon Sims Associate editor/Akron Sue Walton Assistant editor Kevin Kleps Senior reporter Stan Bullard, Real estate/construction Reporters Jay Miller, Government Rachel McCafferty, Manufacturing/ energy/education Jeremy Nobile, Finance Kim Palmer, Government Dan Shingler, Energy/steel/auto/Akron Lydia Coutré, Health care/nonprofits Senior data editor Chuck Soder Cartoonist Rich Williams Local sales manager Megan Lemke Integrated marketing manager Michelle Sustar Managing editor custom/special projects Amy Ann Stoessel Associate publisher/Director of advertising sales Lisa Rudy Senior account executives Dawn Donegan, John Petty Account executives Laura Kulber Mintz, Loren Breen People on the Move manager Debora Stein Office coordinator Denise Donaldson Pre-press and digital production Craig L. Mackey Media services manager Nicole Spell Billing YahNica Crawford Credit Thomas Hanovich 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 CFO Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Reprints: Laura Picariello, 732-723-0569 or lpicariello@crain.com Customer service and subscriptions: 877-824-9373 Volume 40, Number 26 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the last week of December, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2019 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 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
THE WEEK In with the new
Out the door
Renovations of the former Medusa Cement Co. headquarters in Cleveland Heights and the former Tinnerman Steel Range Building in Ohio City were among five Northeast Ohio real estate development projects to win Ohio State Historic Preservation Tax Credits last week. The largest of the local projects is the $22 million conversion of the former Medusa corporate headquarters building, 3008 Monticello Blvd., into 13 apartments. The state awarded it $1.25 million in tax credits. The state also awarded $1.7 million in tax credits to a proposed $17 million project at the Tinnerman building, 2048 Fulton Road, which would convert the complex to 53 apartments. Two proposed Akron projects and another Cleveland project also won awards.
The Healthcare Information and Management Systems Society Innovation Center is winding down operations at the Global Center for Health Innovation. Karen Groppe, HIMSS senior director of strategic communications, said the drawdown of the nonprofit at the 6-year-old building will take place over six to 12 months. HIMSS has been Global Center's anchor tenant since its opening, occupying 30,000 square feet there, the entire top floor of the four-story building.
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On the grow A plan to add apartments to the former headquarters of Medusa Cement Co. in Cleveland Heights has won an allocation of state historic preservation tax credits. Prior efforts to reuse the property have come to naught, and the structure, designed to show the benefits of products using cement, clearly has seen better days. (Loopnet)
Skoda Minotti, the Mayfield Village-based business advisory firm, is opening an office in downtown Cleveland with the help of a state Job Creation Tax Credit. The firm employs
about 250 people in Northeast Ohio, including 70 certified public accountants. Skoda Minotti plans to move about 30 existing staff to the eighth floor of the Fifth Third Center at 600 Superior Ave. The Ohio Tax Credit Authority said Skoda Minotti received a six-year, 1.2% tax credit for the expansion. The firm pledged to create 20 full-time positions, generating $1 million in new annual payroll.
Ballot issue Cuyahoga Community College is putting a 1.9-mill renewal levy on the ballot in November. The proposed levy would come with a 0.4mill increase. If passed, the levy would cost an additional $1.17 per month on a $100,000 home. Collection would begin in 2020 and run for 10 years.
6/28/19 2:36 PM
NOW ANNOUNCING THE
2019
Join us as we recognize Northeast Ohio’s human resources professionals and honor the individuals and teams who are making an impact. This year’s event also will feature roundtable discussions designed to spark conversation about best HR practices and the employee experience. Don’t miss this chance to network, celebrate and learn with NEO’s leading HR execs!
WINNERS AND FINALISTS! WINNERS
FINALISTS
"Accidental" HR Leader: Trey Arney, Locus Fermentation Solutions LLC
OVERALL EXCELLENCE, INDIVIDUAL: David Feinerman, Cuyahoga County Kelli Michaud, Wingspan Care Group
Compensation and Benefits: Keith A. Feicks, Covia
Veronica Oubayan, ExactCare Pharmacy OVERALL EXCELLENCE, TEAM/ORGANIZATION:
Diversity & Inclusion, Individual: Donald Rice, City of Akron
Great Lakes Cheese HR Team
Diversity & Inclusion, Team/Organization: FirstEnergy Corp. Employee Advocacy: Liz Gillmore, Benesch, Friedlander, Coplan & Aronoff LLP
Pepperl+Fuchs Inc. HR Team The Centers for Families & Children and Circle Health Services HR Team RISING STAR Amanda Sipes, Providence House Inc. Amy McMullen, Lincoln Electric
Employee Experience, Nonprofit: Gina Cronin, Cleveland Clinic
Chris Nagel, Cleveland Clinic
Employee Experience, Private Company: Earnest Machine HR Department
TALENT Hiring Optics KeyBank Campus Recruiting Team
Employee Experience, Public Company: KeyBank Benefits team
Northeast Ohio Regional Sewer District, Human Resources
TUESDAY
* Winners of these categories will be announced at event.
AUG. 6
Hilton Cleveland, Downtown
REGISTER TODAY: CrainsCleveland.com/Crains-Events FOR SPONSORSHIP INFORMATION, contact Megan Lemke at mlemke@crain.com
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