A CONVENTION Style” Is the Reason Why TCP Now See TCP, Page 17 How a Local Firm Took Action to Ensure the RNC Chose Cleveland by JOHN CAMPANELLI

20150309-NEWS--1-NAT-CCI-CL_-- 3/6/2015 2:56 PM Page 1

$2.00/MARCH 9 - 15, 2015

Trinity Cathedral has proven to be a unique — and magical — setting for concert series — P. 5 State’s new tax proposal for e-cigarettes could put some local companies out of business — P. 6 TCP’s minority shareholders have options Lawsuits can put pressure on board, but unseating Yan as CEO will be very difficult

By CHUCK SODER has 7,000 employees worldwide and [email protected] $400 million in sales. And to some degree, he can do A lawsuit against TCP CEO Ellis things his way: He and his family Yan portrays him as a guy who runs own 70% of TCP’s shares, and the roughshod over his management family has agreed to let Yan choose team and, in the process, minority who gets elected to the company’s shareholders. As a guy who acts like board. he owns the place. Some board members apparent- Technically, he does not own the ly do want Yan to make changes: place. Technically. The lawsuit states that TCP’s audit But he still has a huge amount of committee told Yan he needs to control over the Aurora-based com- “promptly and substantially” pany — a major player in the light- change the way he runs the compa- ing products industry. ny. But it’s unclear if the entire So if you’re a minority sharehold- board will force Yan to do so, given er who agrees with the claims made that he sits on the board and de- in the lawsuit, know this: You have cides who sits next to him. options, but it might be hard to re- Even so, minority shareholders place Yan as CEO or make other big who want a company to make changes at the company. changes do have some options, ac- Two weeks ago, TCP general cording to local lawyers who aren’t GEIS COMPANIES counsel Laura Hauser filed a lawsuit affiliated with TCP. against Yan and the company itself. For instance, they could file more FROM THE PUBLISHER The suit alleges that Yan “physical- lawsuits. That’s already happening ly assaulted” her, threatened her in TCP’s case, though the share- and pressured managers to release holders aren’t leading the charge: mislabeled products. It also claims Law firms have filed at least seven class action lawsuits claiming that THE PLAN THAT SOLD that Yan barks orders, ignores company policies and makes big deci- TCP misled investors about its sions without consulting other product certifications and other is- managers. sues. None of them had announced Yan issued a statement saying the a lead plaintiff as of last Thursday, lawsuit is “meritless,” but he argues March 5. that his “results-oriented leadership Or they could file a shareholder A CONVENTION style” is the reason why TCP now See TCP, page 17 How a local firm took action to ensure the RNC chose Cleveland BY JOHN CAMPANELLI

You’d think the proposal would have made Greg media center or if they’ll choose the Convention Center Geis — or any developer — run away. option. That decision will be made by the party in the Vol. 36, No. 10 Design a temporary conversion of the Gateway next few months. But both are included in the bid. And Entire contents © 2015 by Crain Communications Inc. East parking garage into a 300,000-square-foot if a complete conversion of the garage is the choice, a de- office building to serve as the media center for the tailed plan exists on how to do it. 2016 Republican National Convention. How that plan was created is one of the best behind-

10 Do it without the benefit of specifications or the-scenes stories of Cleveland’s victorious bid to land

7 blueprints. the convention. It’s also an inspiring example of the kind Do it in 10 days. of collaboration that is fueling Cleveland’s rebirth. And, oh yeah, do it all for free. It took less than two minutes for Geis to agree. * * * After Cleveland’s unsuccessful bid to host the 2008 * * * GOP convention, Jon Pinney, the Kohrman Jackson & NEWSPAPER We don’t know whether the Republican National Krantz attorney who wrote the city’s bid, was chatting 74470 83781 Committee will end up using the garage, which sits next with party leader Bill Harris on an outdoor terrace at the

0 to Progressive Field and Quicken Loans Arena, as the See CONVENTION, page 22 20150309-NEWS--2-NAT-CCI-CL_-- 3/5/2015 2:43 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY

52 TIPS FOR YOUR BUSINESS #10: Be Proactive to Ensure Workplace Safety

Employees are the most important asset ¸7YL]LU[PVU PZ KLÄUP[LS` March 9 in any business, and owners have a the key to avoiding costly OWNER RESOURCES fundamental responsibility to provide a claims,” says Young. safe work environment. The best “And there are a lot of COSE Workers’ Comp Program way to safeguard your workplace great resources available and Safety Plus By The Numbers is to be proactive in developing to help businesses estab- www.cose.org/workerscomp and maintaining safety lish safe workplaces.” Do you expect to increase programs. “Taking steps to One such resource is Safe Cleveland (Safety Training) employee compensation over the prevent accidents and COSE’s Safety Plus pro- http://safecleveland.org next 12 months? illness should be on gram, which provides every employer’s safety audits, OSHA Northeast Ohio Safety Council mind,” says John inspection consulta- Young, Owner of Speed tions and assistance O[[W!^^^ULVZHML[`JV\UJPSVYN Exterminating in Cleveland and former chair in developing workplace safety policies. Safety of COSE’s Workers’ Compensation Product Plus is free to participants in the COSE Work- Occupational Safety & Health Committee. ers’ Comp Program. For more helpful work- Association Ensuring a safe workplace can help to avoid place safety tips and tools, see the Owner Re- https://www.osha.gov costly workers’ compensation claims, cut down sources on this page. YES on lost-work hours, and improve employee mo- i 0M`V\^HU[[VÄUKV\[OV^T\JO*6:, Ohio Bureau of Workers’ rale. Implementing proactive safety programs JHUZH]L`V\VU^VYRLYZ»JVTWWYLTP\TZ Compensation can also have a huge impact on workers’ com- YLX\LZ[HX\V[LI`JHSSPUN https://www.bwc.ohio.gov 55% WLUZH[PVU JVZ[Z HUK OLSW V^ULYZ H]VPK ÄULZ VY]PZP[^^^JVZLVYNJVTWX\V[L0[VUS` for safety violations. [HRLZHTPU\[LHUKP[PZMYLL

Up 15% from July 2013

SOURCE: NATIONAL SMALL BUSINESS ASSOCIATION Have a Teen Who’s Into Tech? 2014 YEAR-END ECONOMIC REPORT

CoolTech Challenge, a design compe- Since 2008, OHTec (formerly NEO- tition intended to spark interest among SA) and its partners, have awarded more Connection Calendar high school students to pursue careers in than $65,000 to area high school student the Northeast Ohio tech sector, is actively participants through the CoolTech Chal- 1 MILLION CUPS CLEVELAND recruiting students and teams for its 2015 lenge. Prizes include scholarship funds, contest. If you have a high school-age fam- t-shirts, gift cards and more. New this year -LH[\YLK)\ZPULZZ!.PNÄUP[` ily member or friend interested in technol- are project mentors and fundraising activi- WEDNESDAY, MARCH 18 ogy or are active as a mentor or alumnus of ties for school use. Teams can register now 9 AM, FREE a local high school, help spread the word at www.cooltechchallenge.org. Submissions i -VSSV^[OL*VVS;LJO*OHSSLUNL*VU[LZ[VU RED Space at HotCards about this fun and challenging opportunity. are due March 27. ;^P[[LY'JVVS[LJORPKZ SMALL BUSINESS BOOT CAMP #1 “MONEY MATTERS” WHAT’S HOT Featured Speaker: Claude Booker, :PTWS`:V\[OLYU:PKLZ WEDNESDAY, MARCH 11 BoxCast HD-Quality Live Streaming 11:30 AM – 1:30 PM Crop Bistro Dubbed a “TV station in a box,” Box- Cost: $25 COSE Members, Cast is a breakthrough technology that TIP $40 Non-Members, Lunch Included offers a simple and reliable way to deliver live, HD-quality streaming video to the For more ideas how 1 TECHFUTURES: PROMINENT masses. “There is nothing more compel- TECH TRENDS ling than live video,” says Gordon Daily, BoxCast technology might THURSDAY, MARCH 12 President and Co-Founder of BoxCast. work for your business, “BoxCast allows anyone with a camera, 11:30 AM – 1:30 PM power source and an internet connection log on to www.boxcast.com. LockKeepers, Valley View to easily broadcast an event to an unlim- 2 Cost: OHTec Member $20, Non-Member $40 ited audience. events, creating a new revenue stream. Can’t make it to LockKeepers? The event will Viewers can watch live or review ar- From townhall meetings to sales or train- also be streamed live at the Burntwood Tavern chive content on-demand via a perfect- ing events, to sporting or church events, in Cuyahoga Falls. ly-sized picture on any device, including you can broaden your audience by bring- smartphone, tablet or computer.” ing your message or event directly to 3 Register for the live or streaming event at Pre-scheduled broadcasts, seamless where your customers and spectators are www.cose.org/events. viewing with no buffering or ads to dis- – either online or at another venue. tract from your content, and easy to man- Launched in Cleveland in May 2013, GOLDMAN SACHS 10,000 SMALL age archives are just a few of the game- BoxCast technology is now being em- BUSINESSES INFORMATION changing features of BoxCast. “It’s also braced by large corporations, colleges, SESSION - WEBINAR completely affordable,” says Daily. “For and churches, and small businesses Learn about the program and get less than the cost of a monthly cellphone are starting to catch on, too. “Every or- personal questions answered live. bill, you can stream unlimited events to ganization needs to be digitally rel- THURSDAY, MARCH 19 unlimited viewers and archive content in- evant today,” says Daily. “Live video 3 – 3:30 PM definitely.” makes that happen. Schools, church- Register at [email protected] or call Another slick feature of BoxCast is es and businesses can now engage a 216.987.3220 the ability to charge admission for your broader audience than ever before.” a smarter way to stream Check out www.cose.org/events

CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150309-NEWS--3-NAT-CCI-CL_-- 3/6/2015 1:24 PM Page 1

Works against gravity. Works with gravity.

2015 ATS 2.5 TURBO/AWD * CLASSIC CADILLAC MONTHLY LEASE $349 39 Month lease requiring $3,344 Cash orTrade due at signing. 10,000 miles per year and 25¢ charge per mile over. Plus tax, title, license and doc. fee (MSRP: $39,155 - ST#W11837) Save an extra $1,000 with GM OWNER LOYALTY - Trade-in not required Must show proof of ‘99 or newer GM Lease/ownership. Please call for complete program details. No Security Deposit Required.

Work with your wallet. CADILLAC CADILLAC AWD CADILLAC 2015 SRX FWD 2015 CTS LUX/ 2.0T 2015 XTS FWD MONTHLY LEASE $359 MONTHLY LEASE $479 MONTHLY LEASE $499 39 Month lease requiring $1,830 Cash or Trade due 39 Month lease requiring $2,599 Cash or Trade due 39 Month lease requiring $3,890 Cash or Trade due at signing. 10,000 miles per year and 25¢ charge per at signing. 10,000 miles per year and 25¢ charge per at signing. 10,000 miles per year and 25¢ charge per mile over. Plus tax, title, license and doc. fee (MSRP: mile over. Plus tax, title, license and doc. fee (MSRP: mile over. Plus tax, title, license and doc. fee (MSRP: $38,600 - ST#W11714) No Security dep. required. $54,405 - ST#W11812) No Security dep. required. $50,490 - ST#W11808) No Security dep. required. Save an extra $1,000 with GM OWNER LOYALTY - Trade-in not required Save an extra $1,000 with GM OWNER LOYALTY - Trade-in not required Save an extra $1,000 with GM OWNER LOYALTY - Trade-in not required Must show proof of ‘99 or newer GM Lease/ownership. Please call for complete Must show proof of ‘99 or newer GM Lease/ownership. Please call for complete Must show proof of ‘99 or newer GM Lease/ownership. Please call for complete program details. No Security Deposit Required. program details. No Security Deposit Required. program details. No Security Deposit Required. BMW BMW BMW 2015 328i xDrive 2015 528i xDrive 2015 X3 xDrive28i MONTHLY LEASE $339 MONTHLY LEASE $489 MONTHLY LEASE $479 36 Month lease requiring $3,995 Cash or Trade 36 Month lease requiring $3,995 Cash 36 Month lease requiring $3,995 Cash due at signing. 10,000 miles per year and 20¢ or Trade due at signing. 10,000 miles or Trade due at signing. 10,000 miles charge per mile over. Plus tax, title, license and per year and 20¢ charge per mile over. per year and 20¢ charge per mile over. doc. fee. Additional charge for certain ext. colors. Plus tax, title, license and doc. fee Plus tax, title, license and doc. fee LEXUS LEXUS LEXUS 2015 Lexus GS350 AWD 2015 Lexus NX200T 2015 Lexus RC350 AWD “Sparkling performance, superb ALL NEW FOR 2015! ALL NEW FOR 2015! handling and the Lexus tradition of Stylish Small Crossover! Smooth Operator! Eminently Cool excellence in ﬁ t, ﬁ nish & reliability.” High Tech Interior! Under Pressure - Car and Driver - Kelley Blue Book

CADILLAC BMW LEXUS CLASSIC MENTOR 440 255 6955 WILLOUGHBY HILLS 888 439 8833 WILLOUGHBY HILLS 800 525 7594 DRIVECLASSIC.COM Offers end 3/15/2015 20150309-NEWS--4-NAT-CCI-CL_-- 3/6/2015 1:25 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 FOR LEASE RTA saves $1.1M by cutting %(7$'5,9( MAYFIELD VILLAGE, OHIO its Work Access Program 15-year-old initiative provided van rides to and from jobs

By JAY MILLER In Cuyahoga County, it provided and Northfield; and Swagelok, [email protected] people from the inner-ring suburbs which has employees using the ser- 81'(51(: and the city of Cleveland with vice in Highland Heights. RTA is eliminating a transit pro- transportation to a job particularly “We are concerned about the im- 2:1(56+,3 gram that helped get people with- during early morning and late- pact it will have on our team mem- Visit out cars to jobs. night hours, or on weekends when bers who need reliable transporta- 6)GLYLVLEOHWR6) TerryCoyne.com The 15-year-old Work Access regular bus and rail services weren’t tion to and from work,” said Mark /RFDWHGRQDFUHV Program costs the Greater Cleve- available. Birtha, president of the Hard Rock &OHDUKHLJKW· Or Call Terry at land Regional Transit Service $1.1 Rocksino in an emailed statement. 216.453.3001 million a year. Until two years ago, “Our human resources depart- 8QGHUJRLQJH[WHQVLYHUHQRYDWLRQV it was funded by the federal govern- “We are concerned ment is working closely with affect- ,H[SRVXUH ment. But then Congressional about the impact it will ed team members to help identify $WWKH:LOVRQ0LOOV5RDGH[LW transportation priorities changed. have on our team alternative methods of reliable Joe Calabrese, in a meeting with members who need transportation,” he said. “We are 1350 Euclid Ave, Suite 300 Crain’s Cleveland Business staffers actively reaching out to other trans- Cleveland, Ohio 44115 on Feb. 25, said RTA picked up the reliable transportation portation vendors, encouraging car cost when the federal money dried to and from work.” pools, and posting ride boards.” up, but it no longer can afford the The typical RTA passenger pays a expense. Employers have been no- – Mark Birtha $2.25 fare, though the farebox cov- president, Hard Rock Rocksino tified that the service will end ers less than 20% of RTA’s operating March 30. costs. Its 1% sales tax and various The program provided more In some cases, the employees grants cover the rest of the transit than 200 Cuyahoga County workers could get to a second-shift job by service’s operating costs. The cost with van rides to or from work, bus but had no way home at mid- of a Work Access trip, comparable Attn: Manufacturers & Warehouses about 2,500 trips monthly. night, Calabrese said. to a taxi fare, was especially high, “We feel our mission of getting The service was contracted out to about $35. “We are extremely pleased with our brighter ware- people to work is pretty primary,” Provide A Ride Inc. of Warrensville The original federal grant also house, while realizing a significant reduction in our Calabrese said. Heights, which provides specialized helped finance extending regular “I feel bad, but we’re in a financial transportation services to doctors’ bus service to employment centers. energy cost. Bob’s crew installed our 105 high bay situation where to continue some- offices, hospitals and schools in That bus service will continue, said fixtures without disrupting our operation. The thing that’s (no longer federally Northeast Ohio. RTA spokeswoman Linda Krecic. amount of time I spent on our lighting upgrade was funded), I’ve got to take service out Letters have been sent to the em- Those lines are the Route 15 to minimal. I wish all my contractors were as easy to of somewhere else and put it there.” ployers, notifying them of the loss the Richmond and Emery roads; The Job Access and Reverse of service. Among the employers Route 19 service to the Richmond- deal with as ROI Energy.” Commute program was established notified were Heinen’s in Mayfield Miles Road area; Route 41F to jobs to help welfare recipients and low- Heights; the Ohio Turnpike Great in Solon and Glenwillow; Route 81 Mike Hendershot, North Coast Bearings, Avon income people reach jobs in the Lakes Plaza; Parma Community service to Steelyard Commons; and outer suburbs and for complex trips Hospital; Safeguard Properties in the Route 94 service extension to that required reaching childcare fa- Valley View; the Hard Rock Rocksi- the Chagrin-Richmond and Har- CALL cilities or other services. no on the border of Walton Hills vard-Richmond areas. Bob Taussig ROI Energy Today! 2014 was busy even by their standards 330-931-3905 Riverside completed a record 61 deals in landmark year for firm www.ROI-Energy.com Serving NE Ohio By JEREMY NOBILE wise choices in terms of how we in- gins.” [email protected] vested in that period.” The company declined to dis- If the recession were a stress test close specific figures on revenues or The Riverside Co. has a reputa- for private equity, Riverside passed rates of return. But the firm’s over- tion for doing things its own way. with flying colors. all profitability is up 21%, Kohl said, When the economy began to Riverside, a global private equity and revenues are up 6% as compa- sour in 2008, for instance, deals in firm headquartered in Cleveland ny valuations continue to rise. All the private equity sector lost some with about $5 billion in total assets, that drove 11% earnings growth sweetness. Capital began drying up, achieved a landmark year in 2014. and a 24% appreciation in the EMPLOYEE ASSISTANCE PROGRAM sellers pulled companies from the The firm completed a record 61 Riverside portfolio. market and investors held on tight deals last year, comprising 42 new Riverside currently has 78 com- to protect their portfolio compa- investments and a record 19 exits. panies in its global portfolio, four Maximize Your nies. According to PitchBook Re- The year also featured what River- fund families and a staff of 230 on search, deal volume tanked, and to- side executives called their most four continents including Asia, the tal dollars invested by private profitable exits to date, including market poised for the most growth, Workplace equity funds sank more than 88% the sale of AERCO International Kohl said. between 2007 and 2009, from $495 Inc., a New York-based manufac- The firm focuses on expanding billion to $57 billion. turer of high-efficiency commercial middle market companies with rev- We’ve provided EAP services for 30+ years. But Riverside made unique in- boilers and water heaters — an in- enues up to $250 million and has an vestments and maintained a steady vestment made amidst the waves of investment period in line with in- Every $1 invested in EAP services saves deal flow — calculated risks that the recession. dustry standards at five to seven employers $5-$16 in reduced costs and made 2014 the firm’s busiest annu- “We saw how that industry was years. Its specialty areas cover eight al period in its 27-year history. verticals including the software, turnover.* transitioning to new boilers, and “We’re an overnight success after that’s the kind of thing we seek: health care, consumer goods, retail Your employees’ success is our business. many years of hard work,” joked specialness,” said Stephen Dyke, a and energy industries. Call 216-421-4131 Riverside co-CEO Stewart Kohl. Cleveland partner with Riverside’s Riverside’s size and scale is “We’re pleased to be delivering Capital Appreciation Fund. “When unique, said Alan Peyrat, a partner *DOL these returns to our investors, you have those things, they lead to with the Micro-Cap Fund. Riverside demonstrating that I think we made higher rates of growth, higher mar- See RIVERSIDE, page 17

Volume 36, Number 10 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Com- year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for munications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, 195560 YEARS 2015 Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 9911, or email to [email protected], or call 877- www.recres.org REPRINT INFORMATION: 212-210-0750 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20150309-NEWS--5-NAT-CCI-CL_-- 3/6/2015 2:30 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Project is gaining traction, but it’s no ‘success’ UH’s $250 million drug development plan has good start, but leader is cautious

By TIMOTHY MAGAW [email protected]

When University Hospitals announced its $250 million drug development initiative — The Harrington Project for Discovery & Develop- ment — three years ago last month, its leaders, admittedly, had a difficult time describing exactly how it was going to solve the problems that kill so many promising drugs in their in- fancies. The highly touted project was designed to advance drugs past the so- called “valley of death,” or the middle stages of development where many fail to attract enough funding to move toward commercialization. Sure, it sounded like a noble cause, but what about UH’s model would solve that problem? And while Northeast Ohio’s reputation as a hub for biomedical innovation was growing, its presence in the pharmaceutical business was sparse at best. THE ELEVATION GROUP Today, that vision is much clearer, Glen Hansard performed in front of a sold-out crowd at Trinity Cathedral on Feb. 12. and the highly touted project has gained significant traction. The region’s pharmaceutical industry has- n’t suddenly gone gangbusters, but the effort’s leaders say there’s growing evidence that their model works, given that 2014 was a year of many milestones for the Harrington Pro- It’s music to their eyes ject. For one, the venture’s nonprofit arm — The Harrington Discovery In- stitute — attracted $54 million in fi- Elevation Group’s Cathedral Concerts series provides unique, majestic setting nancial backing from government, foundation and individual sources. Total support for the institute now By TIMOTHY MAGAW land-based agency The Elevation Group — says al in scope. At current, Cleveland’s WVIZ/PBS stands at $150 million since it [email protected] aren’t possible in other venues. ideastream is recording the shows to air locally launched in 2012. Inspired by performances at historic cathe- and across the state starting sometime later this Plus, the effort attracted the atten- Blanketed in warm candlelight with medieval drals in Ireland and England and his familiarity year. tion of the pharmaceutical industry, ambiance as his backdrop, Irish troubadour Glen with Trinity from a previous project, Denny Young said he’d like to see it grow into some- Hansard hypnotized a crowd of about 500 peo- Young, one of Elevation’s founders and presi- thing similar to the nationally acclaimed and and its Shaker Heights-based for- ple with a two-plus hour performance last month dent, said the series was designed to allow fans to broadcast Austin City Limits concert series. profit arm — BioMotiv — continued at Trinity Cathedral — a majestic, 100-plus-year- experience some of their favorite artists in an un- Young said he’d also like to stage shows in his- to spin out companies. old church on Euclid Avenue in Cleveland’s cam- paralleled and intimate setting. toric cathedrals in other markets, though the To date, BioMotiv has announced pus district. “I don’t think there’s a concert venue remote- concerts would only be filmed in Cleveland. five spinoffs — three that are based The acoustics weren’t forgiving of the occa- ly as unique, different and unusual as Trinity “We’ve always set out to grow this organically, in Ohio — and hopes to add three or sional clang of an empty beer bottle, but the set- Cathedral,” said Young, whose company bills it- Young said. four more to the mix this year. The ting was a unique one in a city with no shortage self as a sponsorship marketing, event produc- “We want this to be a national concert series effort also struck a deal last year with of concert halls. While Trinity is an active church, tion and communications company. that emanates from Cleveland.” the Maryland-based Foundation religion, for the most part, was left at the door Elevation publicly launched the series in De- Fighting Blindness, which is chaired that night. Still, the notion of being part of some- cember with a sold-out performance from Red by former Cleveland Cavaliers own- thing special — something bigger, perhaps — Wanting Blue, a Columbus-based rock group Something completely different er Gordon Gund, to jointly pump $50 was all too present. that makes regular stops in Northeast Ohio. Up- Trinity Cathedral’s makeup is perfect for a million into efforts to fight the dis- “These rooms were built to impress,” Hansard coming acts include indie-rockers The Airborne concert series, Young added. ease. said early in the show. “They were built to awe Toxic Event, ’80s legend Howard Jones, For starters, it’s equipped — and willing — to Still, its leaders are no fans of the and to inspire.” songstress Mary Chapin Carpenter, folk singer sell alcohol. A little more than a decade ago, the word “success.” Launched late last year, the Cathedral Con- Marc Cohn and singer and keyboardist Bruce church added new facilities behind the cathedral, “We are not successful,” said Dr. certs series, of which Hansard’s sold-out Feb. 12 Hornsby. including space for dressing rooms and Jonathan Stamler, director of the performance was a part, has captivated Cleve- And while the series is headquartered in restrooms. It could be a challenge finding Harrington Discovery Institute, land concertgoers in ways its organizer — Cleve- Cleveland, Young envisions it becoming nation- See MUSIC, page 21 See PROJECT, page 20 20150309-NEWS--6-NAT-CCI-CL_-- 3/6/2015 3:05 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015

Medina County’s Most Prominent Retail Property For Sale! Industry is smoking mad over proposed e-cig tax Cost of products would more than triple, which could crush biz

By DAN SHINGLER [email protected]

2803 Center Road, Brunswick, OH Jill Adams says that Gov. John Ka- sich will put her new store out of • Over 36,000 SF of retail and including retail, car dealerships, offi ce, business if his new tax proposal be- warehouse space medical, restaurants, religious & more • Situated on 6.85+/1 AC of prime land • One of the largest available tracts of comes law. • Zoned GW-C: Gateway Commercial commercial property in the city. It’s not the oil and gas severance • Can be divided to permit various • Seconds from I-71 interchange. tax or even the proposed increase in outparcels Minutes from I-271, SR 3, SR 18 & the the state sales tax that has her con- • Ideal for many commercial uses OH Turnpike cerned, though. It’s a proposed new tax on e-cigarettes and, in the eyes of Mark S. Abood folks like Adams, it’s a death sen- 216.839.2027 tence. [email protected] HannaCRE.com The governor is proposing to tax e-cigarettes or, more specifically, the liquid that makes them work, the way cigarettes are taxed. He’s also proposing an increase in the tax on cigarettes, but while the cigarette tax would go up by 60%, under the Ka- sich proposal the cost of their products would more than triple. Are you ready “My $7 bottle of liquid (15 ml), if for April this passes, will be $24.82. My 30ml bottle, which is $15.95 now, will go showers and up to $49.75,” Adams said. May flowers? Meanwhile, vapers could buy their liquid from online retailers for much less. Popular liquids such as Johnson CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS! Creek sell for about $17 per 30ml bottle and even expensive premium brands, such as Five Pawns general-

Providing Commercial & Multi-Family Landscaping Service Since 1995 ly sell for less than $30. FOTOLIA The new tax would be more than just a burden on her Palm Beach Va- Altsmoke is probably the biggest ars and loose tobacco to 60% of pors store in North Ridgeville, which e-cigarette retailer in Ohio, with a wholesale price,” the association just opened in February and has en- national presence online as well. said in a statement last month. joyed strong sales so far, she said. It But it’s not the only one. It remains to be seen if legislators would shut her down. Rick Dice, owner of a chain called will line up behind the governor to “The closest (other e-cigarette) E-Cignificance, says his stores in snuff out e-cigarettes in Ohio. store to me is about five and a half Parma, Mayfield Heights, Canton, Schwiebert said most legislators, in- Landscape Maintenance miles away, so I don’t have a whole Alliance and Massillon employ cluding his boss, still are studying Lawn Fertilization • Mowing • Trimming & Edging lot of competition around me, but more than 20 people so far and esti- the issue, in part because e-ciga- this tax would put me out of busi- mates there are probably 200 or rettes are still a relatively new phe- Innovative Design • Landscape Construction • Mulching ness,” Adams said. “I’m handing out more people working at his stores nomenon. pamphlets to everyone who walks in and other chains. Adams said about half of her cus- Tucker Landscaping Inc. • 986 Broadway Avenue • Bedford, Ohio • 44146 here to tell them to go out and op- “Everyone in Ohio is just going to tomers have told her that they’ll (440) 786-9840 • Tuckerlandscaping.net pose this tax.” buy their liquid out of state,” if the simply go back to cigarettes, which She’s not alone, as the Ways and new tax becomes a reality, predicts she contends are far more danger- Means Committee of the Ohio Dice. ous, if e-cigarettes become too ex- House of Representatives found out Dice also thinks the new tax, if pensive. Currently, e-cigarette mak- last Wednesday, March 4, when it passed, will kill his business. ers market their products as costing held a public hearing on the issue. Not only would he have to charge about the same, or a little less, than The topic drew plenty of opposi- customers at his five Ohio stores the smoking regular cigarettes, but the tion, most of whom remained in the tax, but he would also have to apply costs varies depending upon the gallery while three speakers voiced the tax to his larger online business, hardware that users buy to produce the concerns of the “vaping” com- he said. Meanwhile, Ohio “vapers,” vapor from the liquid. munity, said Adam Schwiebert, leg- as they’re known, likely would buy Cahall predicts Ohioans will sim- islative aid to Upper Sandusky Re- their supplies from out-of-state ply either drive across state lines or publican Jeff McClain, who heads vendors that don’t charge the tax, buy e-cigarette supplies online if the Ways and Means Committee. he said. the tax is enacted. One of those speakers was Frank “There is no question about this,” Cahall, head of operations for Ohio- Cahall told the committee. “Why based Altsmoke.com, which has re- Waiting to exhale would savvy consumers pay double tail stores in New Philadelphia, The topic is heating up among e- for a product if they know they can Columbus, Cincinnati, Canton, cigarette users and vendors. The make a short trip across the border Springfield, Gahanna and South Eu- American Vaping Association, an or buy online where the tax is not clid. Like Adams, Cahall said the gov- industry trade group, accused the enforced? This proposed tax will not ernor’s proposed tax would put his governor of attempting to prevent curb usage, but it will curb sales in company’s stores out of business. Ohioans from quitting smoking. It Ohio and repercussions will be felt “We employ roughly 100 Ohioans claims the taxes on e-cigarettes are at the local level, severely affecting in good-paying, full- and part-time being raised more than the taxes on store owners and their employees.” jobs. All of our positions begin above cigarettes, under the governor’s One thing’s for sure: The fight is minimum wage,” Cahall told the proposal. not over. The measure is part of committee. “In the simplest of “Gov. Kasich’s plan to enact sin Ohio’s general operating budget, terms, if the governor’s proposed tax taxes on the sale of smoke-free va- contained in House Bill 64. That bill increase on tobacco, and specifical- por products is far worse than orig- also has other contentious issues ly the inclusion of vapor products in inally feared. … This tax would ac- being debated in Columbus, such as that tax, becomes law, you will be tually amount to well over 150% of an increase on the severance tax for closing Altsmoke stores and will be retail price. Meanwhile, Gov. Kasich oil and gas drilling, and lawmakers sending our employees back to the is only seeking to increase the tax on have until the start of the next fiscal unemployment line.” smoked tobacco products like cig- year on July 1 to vote on it. 20150309-NEWS--7-NAT-CCI-CL_-- 3/6/2015 3:36 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Corporate Circle office City’s small loan can go long way

By JAY MILLER Ave., and is in the process of hiring upcoming trial of its Magellan bio- buildings change hands [email protected] two more. With the loan, the compa- bandage technology, which enrich- ny pledges to create at least 10 jobs es blood plasma to improve the By STAN BULLARD out an $11.5 million mortgage on The city of Cleveland is extending in Cleveland over the next five years. treatment of burn wounds. [email protected] the properties with Thrivent for a $150,000 loan to the local research The deal was passed by city coun- “The loan, the line of credit, Lutherans and on the same day center of a Massachusetts biomed- cil’s Development, Planning and would help us with some of the Commercial real estate broker recorded an affidavit saying ical company that is developing Sustainability Committee and is ex- startup costs because those are not and investor Joseph Greenberg Gotham King Fee’s interests had stem cell- and tissue engineering- pected to get final council approval funded,” he said. “It will give us a lit- heads an investor group that liked been released to it. based wound care products. in the coming weeks. tle more flexibility with our cash the Corporate Circle I and II office The transfers do not disclose a Arteriocyte Inc. will use the loan Day said the loan will support an flow.” buildings in Pepper Pike so much purchase price for the properties for working capital as it expands its that it purchased the mortgage on beyond $10 — yes, 10 dollars — and local operation. them to buy the properties. an “undisclosed amount of consid- Although the loan is small for a YOU CAN WATCH US, TOO At least, that’s what Cuyahoga eration” the 30050-linked compa- company that has raised millions of County land records say. Green- nies referred to indirectly in the dollars in venture capital and feder- Look for Crain’s Weekly Report webcast, which will hit your inbox Friday berg, managing member of 30050 documents. al research grants, Cleveland eco- afternoon. To sign up, go to: crainscleveland.com/register. Chagrin Boulevard LLC, declined Greenberg also is a broker with nomic development director Tracey comment when asked about the the national Lee & Associates bro- Nichols told a city council commit- properties. kerage, which now lists suite 120 at tee last Tuesday, March 3, that this The ownership change is the lat- 30050 Chagrin as its office address. kind of loan helps anchor companies est twist for the 1983-vintage build- Greenberg also would not comment to the city. ings that were part of a portfolio of on Lee & Associates, which was Arum Nerpouni, president and Classic Jet Center 14 office buildings in the eastern launched last summer, setting up CEO of BioEnterprise, lauded the suburbs that Duke Realty Inc. in shop at Corporate Circle. city’s strategy and pointed out that, Aircraft Charter Service 2007 sold to a partnership led by Steve Egar, president of the Egar while the amount may be small, it New York-based Gotham Properties Associates brokerage in Beach- can be important to early-stage Aircraft Management that was dubbed Gotham King Fee wood, described the buildings as companies. Owner LLC. Gotham in 2013 sur- “Class A” because they have sub- “The capital that Arteriocyte has rendered the keys to the buildings stantial amenities — from under- attracted both from investors as well to the special service for its lender. ground parking to a top-floor con- as a lot of federal grants, all of those A series of transactions on Feb. 9, ference room — as well as a tenant funds have specific uses and restric- documented in Cuyahoga County roster including multiple stock bro- tions,” Nerpouni said. 440-942-7092 land records, show how 30050 Cha- kerages. “So often times, you can have a .com grin came to possess the Georgian- The new owner also doesn’t have company that is cash-rich in one classicjetcharter style buildings with a blue-chip ten- to do a lot to improve the financial particular area but in another partic- Willoughby, Oh 44094 ant roster, although they don’t footing of the two three-story prop- ular area they don’t have the flexibil- disclose a purchase price for the erties. ity to do the basic blocking and tack- properties. CoStar, an online real estate data ling,” he said. “The city coming in as That’s because 30050 Chagrin, service, reports there’s 20,000 partner to make sure a company has through various corporate names, square feet of empty space in the the capacity to continue growing in had acquired the outstanding mort- two buildings, which have a total of Cleveland is incredibly important gage on the properties from Dallas- 120,000 square feet of office space. and valuable to the company.” LEAR 31A based Lone Star Funds and merged They are outperforming the east Kolby Day, Arteriocyte’s vice pres- the limited liability corporation that suburban market as a whole, with a ident and general manager of re- n*>ÃÃi}iÀÊÊUÊÊx£xÊ« ÊÊ bought the mortgage with itself on 5% vacancy rate that is half the va- search and development, told the Feb. 9. cancy rate of the east suburban committee the company has 21 em- Cessna Chancellor 414A The 30050 Chagrin group took market, according to CoStar. ployees at its facility at 7100 Euclid x*>ÃÃi}iÀÊÊUÊÊÓÎäÊ«

ExactCare Pharmacy’s Prescription has sold its Guiding Systems Business to for Success:

WORKING WITH ADP.

a portfolio company of ExactCare Pharmacy, a revolutionary pharmacy solution for individuals challenged with taking multiple medications, rapidly grew beyond the startup when they began to notice some unwanted side-effects. Payroll and Human Resource challenges were holding them back from focusing on their team, strategy and growth. The cure was working with ADP.

7KHXQGHUVLJQHGDFWHGDVH[FOXVLYHÀQDQFLDODGYLVRUWR This story is quite common for growing companies. If you ﬁnd yourself bogged Fives North American Combustion, Inc. in this transaction down in administration when you really should be focused on strategy, visit Beyond The Startup—a website dedicated to helping companies like yours ﬁnd business advice, ideas and insights.

beyondthestartup.com/exactcare

Mergers & Acquisitions . Capital Raising . Financial Opinions & Valuations . Restructuring & Bankruptcy

For more information, please call (216) 589-0900 or visit www.wesrespartners.com

ADP and the ADP logo are registered trademarks of ADP, LLC. Copyright ©2015 ADP, LLC $SURXGPHPEHURI WKHSUHPLHULQWHUQDWLRQDODOOLDQFHRI LQYHVWPHQWEDQNLQJÀUPV 20150309-NEWS--8-NAT-CCI-CL_-- 3/6/2015 3:17 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 Robotics program Buying power is as mighty as ever Corporate United continues to grow, is coming off record year is extending reach By JEREMY NOBILE not be long before the company out- purchasing temp labor, office sup- [email protected] grows its Westlake space. plies, forklifts and moving services. To achieve that, the company is Clairfield said she had a quota to After 18 years in the group-pur- investing millions not only in people achieve savings in spending, and Advanced manufacturing education chasing business, Corporate United and technology, but even marketing Corporate United helped her has amassed a clientele featuring — something the company has nev- achieve that faster. nearly every Fortune 1000 company er formally pursued in its life until “The key thing is their analysis,” initiative will have nine centers in state in Cleveland. recently — promoting itself to po- Clairfield said. “It’s unique in the So when will a business that has tential new members as an organi- ability to not only identify baselines By RACHEL ABBEY McCAFFERTY to a network of nine centers across placed among Inc.’s 5000 fastest- zation where they could enjoy the and savings, but they’re continually [email protected] the state, including at the Cuyahoga growing private companies for the buying power of a massive corpora- monitoring prices to make sure Valley Career Center in Brecksville past seven years by drawing mas- tion like Walmart. they’re not going up.” A program to help better prepare and the Portage Lakes Career Cen- sive corporate members and sup- “I may even down the road be Clairfield, who said she has not high school and adult students for ter in Uniontown. pliers run out of new wells to tap? able to go after small businesses to been “a fan” of other group-pur- careers in robotics and other ad- The Ramtec program was attrac- It doesn’t, said founder and CEO say … enjoy the buying power of chasing organizations in the past, vanced manufacturing careers is ex- tive to the Straight A Fund because Gregg Mylett. It just drills deeper — Sherwin-Williams, Eaton, Parker appreciated that Corporate United’s panding into Northeast Ohio. it’s a customizable approach, said and more creatively. Hannifin,” Mylett said. “I do think all contract doesn’t include taking a cut The statewide Robotics & Ad- Susan Tave Zelman, executive di- Corporate United hit several land- these big companies would love to of the savings. vanced Manufacturing Technology rector of the fund for the Ohio De- marks in 2014. The company, which help out the smaller guys, especially “They’re funded differently than Education Collaborative, or partment of Education. Participants Mylett said saw revenues top $10 those right in their backyard.” others, and there’s a shift with more Ramtec, got its start about three can build local partnerships and million in 2014, has seen com- people doing that,” she said. years ago at the Tri-Rivers Career take local needs into account, she pounded year-over-year growth of Beyond cutting costs and a unique Change ‘at the doorstep’ business model, the future for the Center in Marion, Ohio. Superin- said. The department is hoping to more than 15% throughout the last decade. It now buys in 36 categories procurement businesses is in collab- tendent Charles Speelman said em- see it expand beyond the nine cen- Corporate United’s efforts over — from office products and car oration with suppliers and members, ployers in that region had been say- ters into other geographic areas and the years have pushed prices from rentals to temporary staffing and its big suppliers like OfficeMax and said senior vice president David Cle- ing not enough people were going industries. prescription drugs — from more CVS Caremark down as low as they venger, to help the company identify into the skilled trades, especially than 20 suppliers. Corporate United can go, with deals hitting a plateau products and innovations resulting in manufacturing, so the career center has more than 260 members repre- and products running as cheap as smarter spend management that set out to see what those businesses Plans in motion senting $1 trillion in combined rev- they can go without removing prof- benefit the broader organization. needed from their graduates. Portage Lakes Career Center put enues and 3 million employees. itability entirely. Meanwhile, Cor- “We realize a change is at the Now, the students at Tri-Rivers’ this program on the fast track and All those assets reflect the buying porate United’s own fees, despite doorstep,” he said. “We see it hap- Ramtec program are getting trained hopes to be able to certify some stu- power of a virtual company more growth in size and revenue, have pening now. The future is requiring and certified on the same machines dents before they graduate this than 2.5 times the size of Walmart, remained steady. suppliers to be more consultative used in the field — before, the cen- year, said superintendent Benjamin Mylett points out. But the true value Mandy Masters Clairfield, direc- and focus less on delivery. The days ter would train students on a more Moore. The center had been look- for members comes from managing tor of procurement for Rexel Hold- of dropping a box of material on the generic system, Speelman said, and ing for a way to better train students costs for goods and supplies within ings USA — the Texas-headquar- dock and leaving — it’s just not that leave the certification up to future for careers in manufacturing when its myriad categories for them. tered American component of its way anymore.” employers. The program has been the program came about. To maintain its growth pace, Cor- French parent company specializing Beyond its own company board, officially underway for about a year Moore said the program will porate United plans to court more in electrical distribution with about Corporate United’s members have and a half, and he said the feedback serve high school and adult stu- middle market companies, with $4.5 billion in revenue — said a re- their own board where that dialogue from business has been “remark- dents, and he’s been working with staffs lower than 2,500 people. Mylett cent analysis by Corporate United is taking place. able.” post-secondary partners at the Uni- has laid out goals of pushing mem- helped the company realize $1 mil- “This is all about greater utilization Now, a nearly $15 million Straight versity of Akron and Stark State Col- bership to 300 while growing the lion of annual savings in indirect of the model,” Clevenger said. “This A grant from the state this summer lege. The center is renovating some company’s own 35-person staff by at spending categories, which carry a is purely organic growth in the truest is helping the Ramtec program ex- existing space from the end of least an additional 20% to manage $210 million budget. Rexel works sense. And I think this is absolutely vi- pand from a single center in Marion See ROBOTICS, page 20 increased activity. At that rate, it may with Corporate United in categories able for the foreseeable future.” BUSINESS Building our bank one quality relationship at a time

MEET OUR RESIDENTIAL LENDING TEAM: Left to Right: Darla Stefaniak, Jay Valerian (SVP/Relationship Sales Mgr.) Katie McNair, & Adam Cook (SVP/Chief Administration Officer) Try Liberty for your HOME LOAN Our personalized service is second to none Great interest rates & most current terms are available, subject to credit approval & program terms LOW RATES • LOW COSTS • SUPERIOR SERVICE 216.359.5597 20150309-NEWS--9-NAT-CCI-CL_-- 3/5/2015 1:18 PM Page 1

THE 2015 SPRINTER

ToT mmaximizeaxximi ize yoyourur eeffiffi ciency,ciency,y youyouu needneee d to minimize your vehicle’s downtime, including stops at the gas pump. With the superior fuel effi ciency of its 2-stage turbocharged diesel engine, service intervals extended to 20,000 miles1 and legendary durability, the 2015 Sprinter will help keep your business ahead of the rest. Plus, new standard Crosswind Assist2 helps stabilize your Sprinter in strong, gusting crosswinds. The 2015 Sprinter—your hardest worker. www.freightlinersprinterusa.com

1 Driver is responsible for monitoring ﬂ uid levels and tire pressure between service visits. See Maintenance Booklet for details. 2 Crosswind Assist engages automatically when sensing dangerous wind gusts at highway speeds exceeding 50 mph. Performance is limited by wind severity and available traction, which snow, ice and other conditions can aff ect. Feature not available on 3500 models. ©2014 Daimler Vans USA LLC. All rights reserved.

FTL_CrainsCleveland_Fleet_10.875x14.5in_2015.indd 1 11/10/14 12:25 PM 20150309-NEWS--10-NAT-CCI-CL_-- 3/5/2015 4:11 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Makes sense You couldn’t have picked a better name for the Common Sense Initiative, a state program that reviews — and, if necessary, tweaks or eliminates — Ohio’s rules and regulations. Creating a friendly regulatory environment just makes good sense because it allows businesses in general, and small businesses in particular, to succeed and create more jobs in our state. FROM THE EDITOR The administration of Gov. John Kasich started CSI to help cut through the government red tape that stymies many business owners. The move was one of Don’t take the trolley for granted Kasich’s first actions as governor after he and his running mate, Mary Taylor, had gotten an earful on On a recent frigid workday, I had a place around here to grab lunch?” it’s important to appreciate our assets. the campaign trail about Ohio’s regulatory climate. lunch meeting downtown. I can’t re- I turned to see two middle-aged men, The trolley service is one of them. It’s “In 2010, we heard regulations were killing member whether it was last Wednesday with two pre-teen boys at their sides, all a testament to the collaborative spirit or two weeks ago Tuesday because the clad in Yankees apparel. I suppressed necessary to build a truly great city. businesses,” explained Lt. Gov. Taylor during a visit days this winter are frozen to- my desire to send them chas- When the need to expand the trolley to Crain’s Cleveland Business a few months ago. gether. ing after the long-closed Cap- service to include weeknights and Since then, 5,500 rules that affect business to some Coat on. Gloves. Hat — out tain Frank’s at the end of East weekends became apparent several the door. But not before say- 9th Street. After all, Yankees years ago, RTA worked closely with the degree have been reviewed – and more than half ing a silent prayer. fans are tourists, too, and we Northeast Ohio Areawide Coordinating have been changed in some way. Last year alone, the Please let the trolley be need as many of them as we Agency and downtown businesses to six-person CSI office reviewed 2,476 rules and there. can get. secure the necessary funding. I rounded the corner, and After rattling off a few near- Federal transit money covered 80% of changed or revoked 1,398 of them. there it was. Sitting. Waiting. by options, I suggested they the cost through 2015, while the Down- As Jay Miller reports this week in our Small Warmth on wheels. jump on the trolley with me. town Cleveland Alliance headed up the Business special section, a range of businesses have For those of us who work “I’m headed to E. 4th. You fundraising effort to cover the remain- downtown, we’ve come to ap- ELIZABETH can look around there and ing 20%. been helped by the initiative “from tattoo parlors preciate the convenience of MCINTYRE see what looks good.” What’s also necessary to build a truly that were being subject to new health regulations, to the free ride down Euclid, Su- As we waited to board, one great city is a convenient, reliable tran- practitioners of Eastern medicine and perior and Lakeside avenues and points of the Yankees fans leaned closer, “How sit system in the core city. Greater acupuncturists who were being required to take an in between that the Greater Cleveland much does this cost?” Clevelanders in many ways have been Regional Transit Authority provides His jaw dropped when I told him it slow to warm to transit. The trolleys English test.” with its downtown trolley service. was free. “You’re kidding, right?” he help us to take baby steps to embracing What the CSI review process has added for We appreciate it even more when the asked. Nope, I explained. The trolley it more fully. And as more people Michael Canty, president and CEO of Alloy Bellows North Coast turns arctic or — and I runs seven days a week, free of charge, choose to not only work but live in know this is hard to imagine now — with regular stops every 10 minutes on downtown Cleveland, its importance is & Precision Welding Inc. in Highland Heights and a when the summer humidity brings most routes. becoming even more apparent. member of the CSI’s Small Business Advisory sweat to every step. RTA’s slogan for its trolley service is The same can be said as more visi- Council, is a sense of accountability. He told Jay Last year, more than 1.6 million rid- “Smile and Ride Free.” That’s what the tors, yes, even those clad in pinstripes ers hopped on and off the trolleys, Yankees fans did and that’s exactly what or Steelers’ black and gold, choose to Miller, “It appears to me that after three-and-a-half which — let’s face it — are just gussied we should be doing. spend their tourism dollars here. years a lot of these regulations are getting a lot more up buses pretending to be trolleys. So often, we take for granted the good The next time you see the distinctive balanced because (the agencies) now have got to go Since the trolley service began in 2006, in Cleveland. There’s plenty we can green trolley rolling through downtown ridership has grown from 800 over an point to that doesn’t measure up. Cleveland, take it up on the offer flash- through this process.” entire month to more than 6,000 on Certainly RTA has its challenges, as ing above its windshield. Smile and ride The key to CSI’s success, as we see it, lies in the just one average workday. Clearly, I’m this winter has proven. Buses and trains free. Hop off at your meeting spot. Pop decision to house the effort under the watchful eye not the only one praying for it to be have been delayed. Routes are changed in to the bank. Take a moment to enjoy there. or services are cut, as Jay Miller points lunch or, with the extended hours, din- of the Lieutenant Governor’s office. This is what sets And it’s not just downtown workers out elsewhere in this week’s issue. ner. Ohio’s regulatory monitoring apart from other states who benefit from RTA’s trolleys. Sometimes, though, it takes seeing But be warned. If you go all out and with similar programs. And this should not just be a Last July, I was sitting in front of RTA our city through an outsider’s eyes to devour the pig’s head at the Green- headquarters, waiting for the Euclid change our perceptions about what is house Tavern on East 4th, you might Kasich initiative. We hope the next administration trolley line to take me to another meet- truly good. As we prepare to welcome want to skip the trolley for your return that governs our state realizes the value of the CSI ing: “Excuse me, do you know a good more visitors as Cleveland’s star rises, trip. You’re gonna have to walk that off. program and continues to support it with executive level oversight. Ohio has managed to sprinkle common sense into the bureaucracy of government, something that WOMEN OF NOTE DEADLINE often is in short supply, while hacking away at the Do you know an outstanding The deadline to submit nominations for this year’s Crain’s overgrowth of red tape. woman doing remarkable things Cleveland Business Women of Note program is Monday, March 30. Michael Baach, president and CEO of Philpott in Northeast Ohio? If so, time is Nominations should be submitted online and require a 300-word or less description as to why the person should be considered Rubber in Brunswick, describes it best in Miller’s running out to get her the story: “A raving success.” for Women of Note honors. Forms are available at recognition that she deserves. www.CrainsCleveland.com/ WON_ Nomination. 20150309-NEWS--11-NAT-CCI-CL_-- 3/5/2015 2:24 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 TALK ON THE WEB Re: Browns an ing the blame! Re: The Foundry embarrassment to city? Increasing prices to the loyal fans development in the Flats for “upgrades” on the stadium is an I don’t know if there is ANY team incredibly irresponsible tactic by the I don’t understand why this devel- in the NFL that has shown worse on- Browns’ owner. oper doesn’t join forces with the field performance. Compound that Put your own money in some tal- current core volunteer group that with the fact that the owner is an in- ent that hasn’t been trained to lie, runs the Cleveland Rowing Founda- competent football man, the draft cheat and steal to get what they tion now? has been a laughingstock in the want. Doesn’t combining the existing league and the players’ off-the-field — sickofbrowns well-used organization with funding shenanigans have been almost un- that would expand it seem like a per- equaled and you have a joke — on fect marriage? us, the fans. Re: Layoffs — Abby at TimkenSteel To anyone who buys tickets to JOIN US AS WE SPONSOR THE next year’s fiasco I offer you the fol- Crain’s article about the layoffs Now if they could just clean the lowing quote: “A fool and his money does not educate readers as to what river so it doesn’t have a slimy layer Fur-Get-Me-Not Telethon are soon parted.” energy products and services of grease, gasoline and oil. ... That and help our furry friends in need And by the way, Johnny Manziel would be progress! Timken had been producing that … AM PM and a 35-year-old journeyman QB became uneconomic to continue — Hummer61 Friday, March 20 from 5 to 7:30 with no TE and WRs to throw to will under low natural gas and oil prices. ON CHANNEL 3 WKYC not end well. Just in case the fans — That makes it pretty difficult for Re: Cleveland Clinic, there may be a few of them left — readers to put the move into proper don’t get the message. context. VA team on electronic — Bill Ridenour Regardless, our economic system medical records has never promised job security to I wonder if this is a sign of things PROUD SUPPORTER OF THE CLEVELAND APL When they say “it can’t get any anyone. In its pure sense, jobs are to come? worse,” I’m here to break the bad available where profit opportunity The VA is scheduled to make an For more information and to help, visit elkandelk.com/APL news that it can, and in the Browns’ exists and workers create or enhance announcement this summer on the case, will get worse. that opportunity. In the big picture, selection of a replacement enter- They hire an offensive coordina- there is much value across the na- prise solution for most of their orga- tor who has never held that job be- tion in lower energy prices, increas- nization. fore, and a QB coach who has no ing the number of dollars left over in — Dave Newman NFL background. The GM has made both consumers’ and producers’ awful draft choices and got caught pockets. Re: Tony Rizzo’s contract breaking rules, and the head coach While these layoffs are unfortu- dispute with Good Karma is hiring friends instead of well-qual- nate, they are usually made up for in “The New” ified individuals. the benefits to everyone of lower en- Like Tony Rizzo has any leverage Batten down the hatches. The ergy costs across the board. At least here? Please! The best thing they ship is sinking, and Shanahan Timken did not come to our state could do is take him off the radio. jumped overboard with the only life and federal lawmakers with their Next man up … who will be better! preserver. Glub, glub. hand out to try to perpetuate an un- — CLE Sports Nut — Jim Daniloff competitive business. — Tom Stacy Since he doesn’t want to leave Maybe the Browns hire the inex- Cleveland, he has no leverage. If the perienced (and those nobody else issue is real, the amount of ad sales wants) because no one with any cre- Re: Lawsuit against he brings in is what would dictate dentials in the football business is TCP and CEO Ellis Yan his compensation, not what his au- willing to come on board a sinking Most of what I learned about run- dience thinks of him. LISTING OR BUYING, COLDWELL BANKER IS ship with a dysfunctional crew. ning my business came from seeing — Donald Sinko — Jerome Prugar how NOT to do it from people who AMERICA’S LEADING REAL ESTATE BROKER. were unethical and bullies. Don’t forget the embarrassment If nothing else, this should be a Re: Goodyear’s caused by the “new” owner before wakeup call that your employees new BHO3 tire we even knew he was — his compa- demand more of you than a pay- I like the triple tire. ny “hiding” benefits due customers. check. Is there a setting for potholes? Then he has lowly salespeople tak- — Margy Judd — Robert Salmon www.CBHunter.com

Now member of Coldwell Banker Schmidt Family of Companies www.SchmidtFamilyofCompanies.com

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com

Publisher: John Campanelli Events manager: Jessica Rasmussen Billing: Michele Ulman, 313-446-0353 ([email protected]) ([email protected]) ([email protected]) Editor: Elizabeth McIntyre Special events coordinator: Kim Hill Credit: Todd Masura, 313-446-6097 ([email protected]) ([email protected]) ([email protected]) Managing editor: Scott Suttell Customer service/subscriptions: Marketing strategist: Michelle Sustar ([email protected]) ([email protected]) 877-824-9373 Sections editor: Amy Ann Stoessel ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Assistant editor: Kevin Kleps Crain Communications Inc. ([email protected]) Sports Account executives: Dawn Donegan ([email protected]) Senior reporter: Stan Bullard Keith E. Crain: Chairman ([email protected]) Real estate and construction Lindsie Bowman ([email protected]) Rance Crain: President John Banks ([email protected]) Reporters: Mary Kay Crain: Treasurer Laura Kulber Mintz ([email protected]) Jay Miller ([email protected]) Government William A. Morrow: Executive vice Rob Divine ([email protected]) Chuck Soder ([email protected]) Technology president/operations Office coordinator: Denise Donaldson Dan Shingler ([email protected]) Chris Crain: Executive Vice President, ([email protected]) Energy, steel and automotive Director of Strategic Operations Tim Magaw ([email protected]) Web Editor: Damon Sims KC Crain: Executive Vice President, Health care and education ([email protected]) Director of Corporate Operations Rachel McCafferty ([email protected]) Dave Kamis: Vice president/production Digital strategy director: Nancy Hanus & manufacturing Manufacturing and energy ([email protected]) Jeremy Nobile ([email protected]) Finance Anthony DiPonio: Chief Information Audience development director: Officer Research editor: Deborah W. Hillyer Eric Cedo ([email protected]) Thomas Stevens: Chief financial Officer ([email protected]) Mary Kramer: Group publisher Web/Print production director: Art director: Rebecca R. Markovitz Craig L. Mackey ([email protected]) ([email protected]) Production assistant/video editor: G.D. Crain Jr. Founder (1885-1973) Cartoonist/illustrator: Rich Williams Steven Bennett ([email protected]) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20150309-NEWS--12-NAT-CCI-CL_-- 3/5/2015 2:46 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015

GOING PLACES Send information for Going Places to [email protected]

Jensen to sales associate. JOB CHANGES SERVICE ENGINEERING HUGHIE’S EVENT PRODUCTION DUFFY+DUFFY COST SERVICES: Sammy Free to SEGREGATION SERVICES INC.: production consultant, sales; Julie Craig Miller to president. Felder to director of marketing and special events; Mark Sanvido to FINANCE Shiplett Hlavaty Milota Stiffler Molnar New inside sales, customer service; Brad CITIZENS COMMERCIAL BANKING: Manheim to customer service; Michael P. Shiplett to senior vice Jason Cooklin, Stephen Arnold president, relationship manager and and Stephanie Kugli to lighting market leader, Citizens Financial Group. technicians; Daniel Stobie to video technician; Garrett Beck to audio FIFTH THIRD PRIVATE BANK: technician; Bee New to accounts James J. Hlavaty to vice president, receivable manager. wealth management adviser. KEYBANK: Rob Milota to vice TECHNOLOGY president and relationship manager Christ Morris Jones Stringer Apelis Brown PARK PLACE TECHNOLOGIES: and Adam Stiffler to Northeast Ohio Kelly Greene to director of human vice president and relationship resources. manager, Great Lakes region, NATIONAL ASSOCIATES INC.: INSURANCE Michael Trivisonno to associate. KeyBank Dealer Services. Aubrey Christ to president. WELLS FARGO INSURANCE: GALLAGHER SHARP: Markus E. KEYCORP: Terry Jenkins WESTERN RESERVE PARTNERS: Gloria I. Jones to sales executive, Apelis to partner. BOARDS to president, Key Private Bank. Charles P. Trouba to analyst. employee benefits. MCDONALD HOPKINS LLC: Molly Z. Brown to member and chair, FIRST TEE OF CLEVELAND: Ann FINANCIAL SERVICE HEALTH CARE LEGAL securities practice. Harlan (Harlan Peterson Partners) to chairman; Trent Meyerhoefer to AXA ADVISORS: Jennifer Molnar SUMMA HEALTH SYSTEM: BUCKINGHAM, DOOLITTLE & BUR- RANALLO & AVENI LLC: Joshua chair elect; Sarah Taylor to treasurer; to recruiting manager; Toni New to Tammy Scarborough to vice ROUGHS LLC: Matthew R. Duncan, T. Morrow to litigation practice lead. Erica McGregor to secretary; Craig marketing manager; Julia Cirignano president for ambulatory services Amy K. Friedmann, Richard B. Fry REMINGER CO. LPA: Brian T. Donnan to chair emeritus. to compliance manager. and Summa Physicians Inc. III and Jon R. Stefanik to partners. Gannon to co-chair, health care law. CARITAS FINANCIAL SERVICES: UNIVERSITY HOSPITALS ELYRIA CALFEE, HALTER & GRISWOLD THOMPSON HINE LLP: Brian J. Samir Gautam to managing director, MEDICAL CENTER: Heidi A. Morris, LLP: Gregory Fernengel and Lamb to litigation practice group leader. AWARDS wealth management. D.O. to family practice physician. Anthony Stringer to senior counsel; THRASHER, DINSMORE & DOLAN LPA: Mary Jane Trapp AMERICAN PHYSICAL SOCIETY: to equity partner. Declan Keane and Jonathan TUCKER ELLIS LLP: Ann Selinger (Kent State University) Caresani, Patrick Clunk and named as Fellows. Carl Muller to counsel. NATIONAL COUNCIL OF JEWISH MANUFACTURING WOMEN/CLEVELAND: Barbara Shane and Wendie Forman POLYONE CORP.: John A Business Midea to senior vice president, received Emerging Leader Awards. global operations and process OHIO MINORITY SUPPLIER improvement. DEVELOPMENT COUNCIL: Veronica Cook-Euell (Kent State Banking Solution REAL ESTATE University) received the Advocate TRANSACTION REALTY: Bob of the Year Award. that works for you.

Business Solutions Checking with Interest )HDWXUHVDQGEHQHÀWVRIRXU Business Solutions Checking Meet with Interest account: Brett! • 250 free items (checks and deposited items) per month1 • Free Executive 50 check package or 30% credit The Wizard of Magical Custom Network Solutions 2 towards any other check package & our President • Online banking and bill pay • Free ATM/Visa® check card • Telephone Banking • Detailed statements – go paperless with Ethernet Internet Data Center Fiber Engineering & e-Statements Consulting Brett knows the importance of delivering best-in-class network solutions while providing a steadfast commitment Ask about our enhanced Business Solutions Relationship Banking program. to customer service that is unrivaled within the industry. There’s more to your Network than just wires.

myNYCB.com • (877) 786-6560 See how Brett and the rest of the Everstream™ team can transform your business. visit everstream.net or call 216-923-2300

1Applies to Business Solutions Checking and Business Solutions Checking with Interest only. For Business Solutions Analysis Checking and Business Solutions Analysis Checking with Interest fees may be offset with an earnings credit. 230% credit does not apply to Business Value Pack. Offer may be withdrawn at the discretion of the bank at any time. The bank is not responsible for typographical errors. 20150309-NEWS--13-NAT-CCI-CL_-- 3/5/2015 3:45 PM Page 1

MARCH 9 - 15, 2015 CRAIN’S CLEVELAND BUSINESS 13 SMALL BUSINESS Specialty work propels company to prominence Lifelong love of boating inspires Twinsburg engineering firm

By SHARON SCHNALL for your normal weekend boater, County’s Columbia Station. [email protected] your everyday guy, your river-run “ … The propeller is certainly guy who likes winding turns and where the rubber meets the road. Thom Bucknell spent his youth currents, your high-performance That’s where you translate every- boating. His family belonged to the boat racers, drag racers, offshore thing else — horsepower, hull form Mentor Harbor Yachting Club; his racers — guys that run top-end and maneuverability — into move- father owned a 40-foot cabin cruis- numbers in their own boats, the go- ment and speed,” Mueller said. er. fast crowd,” said Brent Holbrook, a As a child, Bucknell said he To pique the three Bucknell chil- wholesale factory representative for plagued his dad with questions dren’s interests, the elder Bucknell the furniture industry, who lives in about propellers. bought them an 8-foot dinghy. Plantation, Fla., outside Fort Laud- “I am a physician. Why don’t With that dinghy, Thom explored erdale. you go to engineering school and the adjacent lagoons, marshes and Holbrook owns 12 to 15 Hydro- let me know the answers to your swamps, and, at age 12, he entered motive propellers — props, as users questions?” his father responded. a regatta. refer to them. Like Bucknell, he Good advice. Bucknell earned an “I discovered if I tied a broom- likes speed. undergraduate degree in mechani- stick handle to the tiller and sat up “High performance means more cal engineering in 1967, and two front, it would go fast,” Bucknell speed and there’s different takes on years later, an MBA — both from said. “It was just in me: I liked go- speed; it’s preference,” he said. Case Western Reserve University. ing fast in boats.” “For some people that means over He spent hours in the university’s Bucknell’s love of speed contin- 50 miles per hour, for others that prototype machine shop, well be- ued with his 1967 entry into profes- means 70 miles per hour. For me, it yond course requirements. sional racing through the American starts at 100 miles per hour.” Professionally, he excelled as a Power Boat Association; these days, sales application engineer, listening he races two company boats with to customers’ needs and helping his son, Todd Bucknell, and Todd’s Making it go translate those needs into engi- 16-year-old son. Speed is but one function im- neering specifications, as he li- And, he owns Hydromotive Engi- pacted by the propeller. aisoned between sales and engineering LLC of Twinsburg. “It is the propeller that makes the neering. His former employers Hydromotive, founded in 1983 vessel go. None of the horsepower included the Fawick Airflex division by Bucknell, designs and manufac- means anything until I translate it of Eaton Corp., which manufac- tures boat propellers and offers re- into forward and backward move- tured hydraulic brakes and clutch- pair and modification services. ment and that’s done with the pro- es, and Sciaky Inc., now a sub- Four full-time employees, includ- peller,” said Richard Mueller, own- sidiary of Phillips Service Industries ing Thom and Todd Bucknell, are er of Netsco Inc., a naval of Chicago, Ill., which designed and based in Twinsburg. architecture and marine engineer- built electron beam and laser weld- SHARON SCHNALL “They have such a diversified line ing firm headquartered in Lorain See HYDROMOTIVE, page 15 Thom Bucknell is owner and founder of Hydromotive Engineering of Twinsburg. Program aims to stop red tape from sticking to biz owners

By JAY MILLER store activity, estimates the dollar created a well-documented restau- spond to business complaints. The vidualized sterilization of needles [email protected] amount of dine-in food sales being rant compliance system and Non- CSI program also takes a look at ex- and other equipment. But the in- treated as untaxed carryout sales namaker and Subway changed isting regulations as they come up dustry uses pre-sterilized dispos- Getting tangled in government and levies an additional tax. Non- their point-of-sale system to better for a statutory five-year review, to able needles and business owners red tape is a common fear among namaker, a certified public accoun- ensure employees collect tax. see if any changes are warranted. argued that the rule would increase business owners. tant, doesn’t object to paying fair “I think it’s improved the sys- “I call it a raving success because, costs and reduced the safety of nee- The administration of Gov. John sales taxes. But he believed that he tem,” Nonnamaker said. “I think it if nothing else, it’s created a com- dle handling. Working with the Kasich has stepped up efforts to and other franchise operators were will be easier for full compliance.” munications link between govern- health department, the CSI office make Ohio’s Administrative Code a being blindsided by the audit ment, legislators, rule makers and introduced a legislative amend- little less sticky. process. businesses,” said Michael Baach, ment to solve the problem in a way, Soon after Kasich took office, the “It was not statistically valid,” he Making an impact president and CEO of Philpott Rub- the annual report said, that re- Legislature approved SB 2, creating said. “They were using a limited Though CSI is only an advisory ber Co. of Brunswick, a member of duced costs and improved safety. the Common Sense Initiative pro- sample that was not representative, body, it has pushed rule-making CSI’s Small Business Advisory The acupuncturists complained gram, or CSI, to review rules and so I went to CSI.” agencies to take a closer look at Council. “This is a collaborative about a statute that required them regulations proposed by state After a year of meetings that in- thousands of proposed rules for thing.” to pass an English proficiency test agencies for their potential impact volved CSI, the tax department, the their adverse impact on businesses. The program’s recently released even if they were born and raised in on businesses. Ohio Restaurant Association and CSI set up shop on Jan. 1, 2012, in annual report outlined relief pro- the United States and English is It’s a process that has worked for Nonnamaker, the Subway operator the office of Lt. Gov. Mary Taylor. vided to a range of businesses, from their first language. Again, CSI was Joe Nonnamaker, president of J&K believes they have a good solution. “It’s not about deregulation, it’s tattoo parlors that were being sub- able to get amended legislation to Subway Inc., a Subway sandwich “What came out of it was that the not about no regulation,” explained ject to new health regulations, to solve the problem. shop franchisee in Canton. Nonna- department of taxation agreed to Taylor at a meeting in Crain’s practitioners of Eastern medicine “It appears to me that after maker’s stores got hit with a sales look for another way to do the au- Cleveland Business’ office in De- and acupuncturists who were be- three-and-a-half years a lot of these tax audit that, he believed, unfairly dit,” he said. “CSI was the conduit cember. “It’s about regulation that ing required to take an English test. regulations are getting a lot more increased the amount of sales tax with the tax department to begin makes sense.” The tattoo parlors won relief balanced because (the agencies) he had to remit to the Ohio Depart- the conversations and were part of The goal, Taylor said, is to make from a Department of Health rule now have got to go through this ment of Taxation. the meetings.” sure new rules are necessary, not that, following statutory require- process,” said Michael Canty, pres- The audit basically observes In the end, the tax department unduly burdensome and to re- ments, would have required indi- See PROGRAM, page 14 20150309-NEWS--14-NAT-CCI-CL_-- 3/5/2015 3:45 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 TAX TIPS PETER A. DEMARCO PROGRAM Appreciate depreciation rules to maximize deductions continued from page 13 the annual report said. ident and CEO of Alloy Bel- The process asks agen- In an annual rite of spring, scores of exceed $2 million. lows & Precision Welding cies to explain why the rule small business owners soon will be kick- Passenger cars qualify for bonus de- Inc. of Highland Heights, is necessary and how it im- ing tires at vehicle dealerships as they preciation if they are used more than another advisory commit- pacts businesses. It also consider trading in their winter-worn 50% for business and the taxpayer did tee member. must lay out for the CSI of- wheels. not otherwise elect out of bonus depre- “(The CSI review) adds a fice how the rule was devel- Small businesses commonly own one ciation. They also qualify for Sec. 179 de- sense of accountability to oped, with input from or more vehicles for use in the business, ductions. These provisions, however, are make sure (regulations) are stakeholders and how the so they are subject to tax rules around limited and only raise the depreciation balanced, they make sense purpose of the regulation how to claim the expenses associated allowance by $8,000 for the first year. and that (the agency has) justifies the impact it has on with owning and operating such vehi- So assuming a business owner pur- some clue as to what the businesses. cles for business purposes. The rules chased a vehicle in 2014 for $28,000 and cost is.” CSI then can recommend around depreciation are particularly used it 100% for business purposes, the ways to soften the impact or tricky and sometimes are overlooked, in depreciation calculation could look No more wine-ing even suggest the agency part because portions of the rules are something like this: Under either the start from scratch. oddly named. bonus depreciation or Sec. 179 rules, the One notable victory While CSI recommenda- The U.S. Tax Code allows, under most maximum amount deductible is $8,000. helped cut costs for an Avon tions are only advisory, it is circumstances, for business owners to Then, using the standard depreciation company in CSI’s early a part of the governor’s of- deduct from their taxable income the calculations for luxury autos under Sec. days. Peter A. DeMarco is vice president and fice, so it’s not surprising full purchase price of qualifying equip- 280F, the taxpayer can claim a standard Custom Culinary makes that the office reports that director of tax services for the regional ment put into service in a given tax year. depreciation amount of $3,160. Those sauces, soups and gravies 100% of its recommenda- accounting and business consulting firm However, it also sets limits on the numbers would combine to allow first- for the food service indus- tions were adopted in 2014 amounts that can be expensed immedi- of Meaden & Moore, headquartered in year depreciation of $11,160. try. Some of those products — no agencies have refused ately, as well as limits on depreciation Cleveland. Given the different limitations for light are flavored with wine, to adopt CSI recommenda- for passenger vehicles. In the earliest trucks and vans, the numbers would which the company had to tions. days of such limits, the vehicle depreci- tos placed into service in 2014 begin at work out somewhat differently for those buy at retail, by the bottle, In addition, none of its ation limits became known as limits for $3,160 for the first tax year and increase vehicles. Treatment also will be different because of state liquor laws. recommendations were re- “luxury automobiles.” to $5,100 for the second year, then fall to for sport utility vehicles, which some- But after a CSI investigation, jected by the Joint Commit- As vehicle pricing has changed over the $3,050 for the third year and level off at times are considered passenger vehicles state Sen. Gayle Manning of tee on Agency Rule Review years, the scope of the rule has swept in $1,875 for each year thereafter. For light and sometimes not. North Ridgeville in 2012 (the legislative committee an increasing range of vehicle types and trucks and vans, the figures are a little dif- Trucks, vans and SUVs that do not pushed through legislation that can nullify any rule sizes so that it applies to far more vehicles ferent, beginning at $3,460, peaking at meet the criteria for passenger vehicles in that amended state law to that exceeds legislative in- than those considered “luxury” by most $5,500 and tapering to $1,975. These the tax code are not subject to the same allow food manufacturers to tent). consumers’ standards. In 2014, for exam- rules are commonly referred to as the depreciation limits. The gross vehicle purchase alcohol at whole- “The CSI Office contin- ple, the rules apply to any passenger au- Sec. 280F limits. weight will determine whether a higher sale. ued to improve in 2014,” tomobile that costs more than $15,800; On top of regular deduction rules and dollar limitation applies or the limitations In all, the CSI office in Taylor said in a follow-up for trucks and vans that also serve as pas- depreciation limits for vehicles, bonus are not applicable at all. Further, if the ve- 2014 reviewed 2,476 rules, email to Crain’s after the senger vehicles, the limits apply to vehi- depreciation and Sec. 179 expense de- hicle is used less than 100% for business, 38% of which were about li- annual report was released. cles that cost more than $17,300. ductions add another layer of complexi- then the depreciation deductions, includ- censing board regulations. “There is no question Shoppers who scanned the window ty. Under bonus depreciation generally, ing any bonus depreciation or Sec. 179 Another 17% were health that the Common Sense stickers of most new vehicles in 2014 no which is in effect for 2014, a taxpayer can deduction, will be reduced accordingly. agency regulations. Of those Initiative has helped make doubt found plenty of makes and models take an additional 50% deduction for Despite the complexity, depreciation regulations that were re- Ohio a better place to do that exceeded these price limits. That qualifying property in the first year it is rules have given business owners great viewed, agencies amended business and is a key part of means there’s a good chance that the typ- placed into service. The Sec. 179 expens- incentives in recent years to accelerate 1,274 and rescinded 124. this administration’s efforts ical small business owner’s vehicle is sub- ing deduction allows the write-off of up vehicle purchases. It’s difficult, howev- That number is up from the that have led to more jobs, ject to the depreciation limits, even if the to $500,000 of the cost of otherwise qual- er, to overstate the importance of wad- program’s first two years, less unemployment and in- vehicle might not be considered “luxury.” ified capital expenditures, with phase- ing into the depreciation rules to opti- when the office reviewed creased opportunity for Depreciation limits for passenger au- out rules applying when total purchases mize the deduction. approximately 1,500 a year, Ohioans.”

COX BUSINESS INTERNETSM 15 NEXT DAY INSTALL WITH EVENING APPOINTMENTS AVAILABLE

ADD COX BUSINESS $ 99 99 INTERNET GATEWAY 7 * $ a month mo* INTERNET PACKAGE OPTIONS WITH GET THE FASTEST WIFI AVAILABLE PROTECT YOUR BUSINESS WITH 69 MAXIMUM DOWNLOAD SPEEDS WHEN YOU ADD OUR NEW 5 SECURITY SUITE LICENSES FROM 10 MBPS TO 10 GBPS WIRELESS GATEWAY AND 5 GB OF ONLINE BACKUP For 12 months with a 2-year agreement*

CALL 866-791-2688 | VISIT COXBUSINESS.COM

*Offer ends 5/3/15. Available to new commercial subscribers of Cox Business InternetSM 15 (max.15/5 Mbps). Prices based on 2-year service term. Monthly service fee increases to $74.99 in month 13. Next day install subject to availability and may require expedite fees. DOCSIS 3.0 modem may be required for optimal performance. Prices exclude equipment, installation, taxes, and fees, unless indicated. Fastest WiFi based on available 802.11ac equipment, available at additional charge. Speeds not guaranteed. Actual speeds vary. Rates and bandwidth options vary and are subject to change. Discounts are not valid in combination with or in addition to other promotions and cannot be applied to any other Cox account. Services not available in all areas. Other restrictions apply. ©2015 Cox Communications, Inc. All rights reserved. 20150309-NEWS--15-NAT-CCI-CL_-- 3/5/2015 3:43 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 HYDROMOTIVE continued from page 13 ing, distribution, customization and operated a new boat every 10 ing equipment. shipping take place at the Twinsburg months, when he competed as a After hours, he launched Hydro- headquarters, a commercial condo- professional bass tournament fish- motive from his Twinsburg home’s minium space purchased by Buck- erman. basement, designing a boat nell, in 1992, at 2,000 square feet and “The manufacturers have to have nosecone sold via trade magazine then doubled, in 1993, to 4,000 a prop that generally works OK on advertisements. The platypus bill- square feet. Prop customization all different boats, so you may not shaped nosecone improved water ranges anywhere from $100 to $600 get exactly what you need on your flow, ultimately enhancing proper prop, and can include thinning boat,” Scalish said. peller efficiency, speed, acceleration and sharpening blades, repitching “It’s not the fault of the manufac- and maneuverability. (twisting) blades and drilling vent turer. They cannot make a prop Increasing order volume and, lat- holes. Bucknell said about 75% of the with so many minute differences. SHARON SCHNALL er, a proposed job relocation to At- props purchased are subsequently Their inventory would be astro- Among Hydromotive’s long-term goals is to focus on new propeller designs. lanta, were primary factors that — customized. nomical. They have to build to the middle of the road. But are you go- pun intended — propelled him ex- Hydromotive props for 35 years, props per year. clusively toward business owner- ing to be at the maximum perfor- Everybody knows mance of your boat? More than since age 19. When recreationally “When you win a race, everybody ship, along with his wife telling him, fishing, he purchases one prop knows whose prop you’re running,” “Pursue your dream.” Just ask Frank Scalish about cus- likely, no.” tomization. From 2002 to 2011, the Now an independent fishing lure every two years; when profession- Scalish said. “Guys will hide their Cleveland Heights resident said he designer, Scalish has purchased ally racing, he bought up to three props, but everybody knows.” Racing ahead The nosecones, which accounted for $80,000 or 100% of the company’s first-year gross sales, reflect less than 1% of last year’s $600,000 gross sales. The locally manufactured nosecone served an aftermarket wanting upgrades, but is now standard with many of today’s high-performance boats. Hydromotive’s first propeller, also designed by Bucknell, was introduced around 1984. Today, the company offers 17 different prop styles across the three- to six-blade config- urations — three-blade propellers retail for $450-$500; six-bladers for $1,400-$1,500. International trade represents 65% of unit sales. Bucknell said company goals for 2015 will include “expanding our overseas markets, increasing our market share in the fishing arena and anticipating a moderate come- back of the sport boat market due to the reduction in fuel costs.” Long-term goals, he said, will focus on adding “new propeller designs to accommodate the changing markets” and ultimately a transition in leadership and ownership of the business from father to son and perhaps, someday, to grandson. In the meantime, the stainless steel propellers are cast and finished in an Indianapolis foundry. Sales, market-

GET DAILY NEWS ALERTS FROM CRAIN’S

REGISTER FOR FREE EMAIL ALERTS AND RECEIVE: THE MORNING ROUNDUP: The day’s business news from Ohio’s daily papers BREAKING NEWS ALERTS DAILY HEADLINES: News and blog items from the day SS&G has joined BDO REAL ESTATE REPORT: The people you know at SS&G, one of the Midwest’s top accounting ﬁ rms, have combined their dedicated professionals Published Monday. and staff with BDO. With both local knowledge and expanded resources, we look forward to delivering the same HEALTH CARE REPORT: A weekly guide to keep readers exceptional client service to entrepreneurial and growing businesses across the Midwest – and all over the world. on top of changes in the health care industry. Published Tuesday. BDO Akron BDO Cleveland BDO Downtown Cleveland DEALMAKER ALERT: A weekly guide on M&A trends 301 Springside Drive 32125 Solon Road Hanna Building, 1422 Euclid Avenue, Suite 1500 and recent transactions in Ohio. Akron, OH 44333 Cleveland, OH 44139 Cleveland, OH 44115 Published Wednesday. 330 668 9696 440 248 8787 216 325 1700 MANUFACTURING REPORT: A weekly guide to Northeast Ohio’s manufacturing sector. Published every other Wednesday. Accountants and Consultants www.bdo.com

CRAINSCLEVELAND.COM/REGISTER 20150309-NEWS--16-NAT-CCI-CL_-- 3/5/2015 3:54 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 Innovation is name of the game for marker maker

By RACHEL ABBEY McCAFFERTY golf tee markers, started with the to prepare fields for play. [email protected] creation of a plastic-injection mold- And Hlavin quickly realized the ed ground socket anchor for golf company had a lot of opportunities When the snow from this partic- courses. to grow. ularly brutal winter finally melts, In the ’80s, courses often used “We knew we needed to start do- golfers, baseball players and the like painted wooden stakes to mark haz- ing a lot more than just this small may have Markers Inc. products to ard and out-of-bounds areas, Hlavin niche of product,” Hlavin said. CONTRIBUTED PHOTO thank for helping their local course said, but that meant those areas Markers Inc.’s MarkSmart athletic products line includes the outfield fence kit. or field get into playing shape could shift when workers moved the More than a hole in one The idea for the ground sockets and poles in the kit evolved from the original quickly. stakes to mow the course. Markers’ products made for the golf industry. Markers Inc., a small athletic anchor is driven into the ground and Hlavin had what he called a “light equipment company in Avon Lake, sits flush with the surface, so just the bulb” moment when he saw a flag- for different sports. The company lege alumni associations. It even wants to help its customers, from removable stake portion is taken out pole fly out of the ground and hit a then put together basic lining pack- has printed flags for a wedding athletic directors to golf course su- for maintenance. The anchor re- child in the jaw at a youth soccer ages for different sports and began adorned with photos of the bride perintendents, “do their job more mains in its designated spot. match. He realized the company adding products such as corner and groom, Hlavin said. efficiently,” said president Dale When the company began, Hlavin could make a product, similar to the flags for soccer and field hockey. Hlavin. was teaching and coaching in Rocky golf ground anchor, to denote where Today, the eight-person compa- Markers was started by Hlavin’s River, but he had invested in the the lines on the field should go. All ny that got its start in golf makes just The path less traveled father-in-law Jack Thompson and family-run business and started coaches would have to do is connect about 20% of its sales from the Stone Ridge Golf Club in Bowling Dick Rybak in the mid ’80s as an off- working there in the summers. the dots — and Markers made the sport. Products for other athletics Green learned of Markers four or five shoot of Thompson’s main compa- In 1988, he decided to leave edu- product out of a more flexible plas- make up the bulk of the rest, with years ago and began buying the com- ny, plastic injection molder Thogus. cation and join Markers full time, tic, like a rubberized gym floor, so about 10% coming from garden or pany’s sponsorship flags. Tony Czer- Today, Hlavin’s son, Matt Hlavin, and his experience as a coach and an athletes wouldn’t get hurt. yard products, though Hlavin de- niakowski, director of golf and sales, runs Thogus and its other associat- athlete — primarily in wrestling and Markers started offering that clined to share specific sales figures. said it’s a “clever way” to sell golf ed companies, such as rp+m, while football — as well as his degree in product in 1990, Hlavin said, Its customers range from college sponsorship rights instead of just cre- the elder Hlavin runs Markers. health and physical education from adding color caps like white for programs to intramural leagues, like ating a sign. It’s an instant memento Markers, which sells a variety of Baldwin-Wallace College, gave him football or yellow for soccer so cus- the Westlake Soccer Association. for the sponsor, and the product is a products, including ground field and plenty of experience in what it takes tomers could mark the same fields Tom Werling, president of the as- well-priced, nice quality one. sociation, said Markers’ products Going forward, Hlavin said he’d make the process of laying out a like to put a stronger focus on two soccer field less time consuming. package offerings that serve non- UPCOMING EDITORIAL FEATURE Werling has known Hlavin for years, profits or charities, in addition to as Hlavin was his wrestling coach. raising awareness of the company’s The soccer association uses 10 recycled tire-based products for fields, which it lays out twice a year, baseball and other athletic fields. and about half of them can constant- The first package is a customiz- Cleveland is a sports town, ly stay marked using the Markers able flag and tee marker set that sockets. The association, which in- groups could use to sell sponsor- and that means big business. cludes about 1,000 children from 3- ships at golf charity events. The sec- year-olds through eighth grade, no ond is the company’s line of light- longer has to start from scratch each weight, easy-to-install flagpole This section will look at the teams, time it lays out a field, Werling said. products that work well for groups Markers currently makes about 75 honoring the troops. He said he the players and what it all means to the region. to 80 products of its own, from ath- likes to help people solve problems. letic and golf products to fence prod- The company has continued to ucts and flagpoles, using Thogus ex- innovate and add new products pertise, and working with companies since its start. like Humphrys-CoverSports in A lot of the company’s innova- Philadelphia to offer others. tions over the years have come from The company is small enough to customer suggestions, Hlavin said, be flexible, Hlavin said, and it does specifically noting the flag products try to meet unique requests from which had been born of homeown- customers. Markers offers custom er requests. SPORTS flags for events such as charity golf “We’re constantly tweaking, outings, but it can also make flags adding, trying to find the path less BUSINESS for personalized gifts, like for col- traveled,” Hlavin said.

Issue date: March 23 Ad close: March 12

Book your ad today. Contact Nicole Mastrangelo at 216-771-5158 or [email protected]. 20150309-NEWS--17-NAT-CCI-CL_-- 3/6/2015 1:25 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 TCP continued from page 1 vestors who can’t afford to duke it is a key link to the company’s mul- derivative lawsuit — a tool share- out in court have other tools at their tiple manufacturing plants in that holders can use to sue third parties disposal. Like free speech. country. His brother Solomon has on behalf of the company itself. Shareholders can sometimes ef- been president of the company’s The Leadership Lab Those third parties can be compa- fect change by going public with Chinese subsidiaries since 1995. ny executives and directors be- their complaints, according to Of course, no matter how much for Women in STEM lieved to be harming the company. Scott Lewis, administrative partner control a large shareholder has, WEATHERHEAD EXECUTIVE EDUCATION at Meyers, Roman, Friedberg & they do have at least one incentive 2015 PROGRAMS Lewis. to please smaller ones. Getting religion Sure, a good argument might If minority shareholders don’t Before they can file a derivative sway company leaders to make like a stock, they will sell it, which action, however, they have to peti- changes. But “the power to embar- drives down the value of everyone’s It’s time to make the most of your career in STEM. tion the board to make changes. rass is another potential weapon,” shares. The Leadership Lab for Women in STEM provides professional and leadership And sometimes that alone will Lewis said. And that’s what TCP sharehold- development for women in technology-driven, male-dominated professions. Guided prompt a board to make changes, But what if shareholders at a ers have been doing. When the by expert faculty through three sessions and one-on-one coaching, participants will according to attorney Christopher company like TCP wanted to re- company went public in June of last overcome barriers to success by building skills and gaining practical knowledge. Hubbard, who leads the corporate place the CEO, who happens to year, its stock initially sold for $11 securities group at Kohrman Jack- own a supermajority of the compa- per share, but the price dropped SESSION 1 | April 28-30 SESSION 2 | June 17-19 SESSION 3 | July 29-30 son & Krantz of Cleveland. ny’s stock? How could they do that several times over the next two “Sometimes the threat of a deriv- if he alone has the power to elect months and hovered in the $6 to $7 Women in STEM: High-impact Skills and Strategies ative action can give the board board members? range in the months before Hauser Bias, Barriers and Leadership for for Leading the Way more religion than they had,” Hub- Two lawyers who asked not to be filed her lawsuit. The suit caused Opportunities Women in STEM Forward in STEM bard said. named said that would be particu- the price to drop by more than 50%; Lawsuits also can be good tools larly hard. it was trading at $2.72 on the after- for larger minority shareholders noon of Thursday, March 5. For more information or to register, visit http://bit.ly/STEMleadershiplab who want to change the makeup of In TCP’s case, the board still a company’s board. Maybe they He’s the man might make changes. The company don’t control enough shares to And in TCP’s case, removing Yan — which technically is called TCP sway who gets elected, but they can would come with additional com- International Holdings Ltd. — said use lawsuits to put pressure on plications. The company is “partic- in a statement that the claims board members who may not want ularly dependent” on Yan, accord- against the business are “without to go to court — or give a deposition ing to the registration statement merit.” However, it did not com- under oath, according to a local se- TCP filed with the U.S. Securities & ment on the claims against Yan. Scott Repie curities lawyer who did not wish to Exchange Commission last year, The statement said the audit com- tel 330 535 2661 be named. when it was preparing to go public. mittee is still investigating Hauser’s Cummins www.naicummins.com Even so, lawsuits against board “Ellis Yan has major responsibil- claims. Commercial Real Estate Services, Worldwide. members sometimes don’t inflict as ities with respect to sales, product And according to the lawsuit, the much pain as one might think: development and overall corporate committee had scolded Yan before FOR SALE - CONFIDENTIAL LISTING They typically are provided with in- administration. We do not have a the suit was filed. According to surance that will compensate them formal succession plan in place for Hubbard, “that may be indicative if they lose a lawsuit. Ellis Yan,” the document stated. that the board is trying to do the However, even small minority in- Plus, Yan, who grew up in China, right thing.” RIVERSIDE continued from page 4 From Smyers’ perspective, what That’s part of the many factors enjoys the scale of a larger firm, but makes Riverside special from oth- that have created a brand name for North Canton Daycare Near I-77 focuses on those middle market ers is its management approach, in- Riverside, Smyers said — some- specialty areas “where we’ve done vesting strategies within industry thing less common outside of mega Real estate & daycare business for sale - $1,296,000. more deals than almost any firm,” specializations — which allows it to private equity funds like Goldman Peyrat said. “see good companies a little bit ear- Sachs. And that positive reputation Can be sold separately. Riverside’s investors are primar- lier than everyone else” — and preceding the Riverside name helps 11,000+sq ft. building with 1.6 acres. ily institutional groups like insur- depth of research both before and foster and maintain critical rap- ance companies, university endow- after a transaction. ports, which are essential to identi- Scott Repie [email protected] ments and governmental pension “It’s the commitment to the dili- fying new investments, said associ- Contact at funds, like the Ohio Police and Fire gence that I think really is unique. I ate director Cheryl Strom, whose IRUFRQÛGHQWLDOLW\DJUHHPHQWDQGPRUHLQIR Pension Fund in Columbus. And don’t know many other firms that duties include finding Riverside’s about 5% of its investable capital do that,” Smyers said. “Others will next big stake. comes from Riverside employees talk about it, but Riverside does it.” Looking to the future, Dyke said themselves. And when the recession hit, Smy- Riverside will eye the software, ers said Riverside appeared to in- business-to-business services and Walk the talk vest more confidently, contrary to energy sectors this year for some of the more generally conservative its more potentially lucrative in- But what seems to set Riverside private equity sector at the time. vestments. apart in the industry is its business Beyond spotting profitable in- Kohl said the plan is for “more of and investing strategies. vestments, post-deal company the same” throughout 2015. Sales “They put their money where management is something River- may be a bit slower because of the their mouth is,” said Bert Smyers, side prides itself in. The company is volume of exits last year, but the founder of New Heights Research known for replacing financial offi- company expects some major LLC, a Cleveland company that cers after a transition, and has a transactions to come to fruition. conducts pre- and post-investment group of experts in-house to as- “And five years from now, we ex- market research and due diligence sume executive leadership roles in pect another great payday like for private equity groups. newly acquired businesses. 2014,” Kohl said.

Crain’s 2015 program nominations

Nominations are now open for all of Crain’s Cleveland Business’ 2015 programs. Deadlines for each program:

■ Women of Note ■ Forty Under 40 ■ General & In-House Counsel Awards Nomination deadline: March 30 Nomination deadline: June 1 Nomination deadline: Aug. 21 ■ Archer Awards ■ Crain’s 52 ■ Who to Watch in Manufacturing Nomination deadline: May 1 Nomination deadline: June 22 Nomination deadline: Aug. 24 ■ Who to Watch in Technology ■ CFO of the Year Awards ■ Who to Watch in Marketing/ Nomination deadline: May 18 (noon) Nomination deadline: July 10 Creativity Nomination deadline: Oct. 26 For more information on how to submit your recommendations for each of the programs, go to: www.crainscleveland.com/nominations. 20150309-NEWS--18-NAT-CCI-CL_-- 3/6/2015 1:26 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 LARGEST 2014 RESIDENTIAL SALES

D(1)

Address Square feet Rank County Sale price Buyer Seller Year built Sale date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age 1

Hunting Valley $5,950,000 One of the most remarkable and truly spectacular estates in Northeast Ohio located in the heart of Hunting Valley with breathtaking views and Chagrin River frontage! Extraordinary Adam Sells The amenities including an indoor sports complex with pool, ten- Most ExpensiveHomes nis court/basketball court, full kitchen, exercise room, guest suite, spa and more! in Cleveland!

Aurora--$3,499,000 Kirtland--$2,995,000 Waite Hill--$2,500,000 Rocky River--$2,490,000 Absolutely remarkable home sited on a nearly 3 A Landmark Estate--Playmore is a truly one of a Historic hilltop home with unmatched views that You won't think you are in Cleveland. Absolutely acre breathtaking site overlooking the 13th fair- kind property with sweeping views of the valley all overlook a four hundred acre nature preserve. The breathtaking state of the art home sited on the way offering sweeping views and remarkable pri- the way to Lake Erie! A long private winding drive glass-walled sunroom and dining room oversees most magnificent lakefront lot with incredible ter- vacy! Built with the finest of everything including leads to this stone English Country Manor built in the patio and pool with breathtaking views in all raced walkway to private dock with 2 boat lifts state of the art technology, luxury amenities sec- 1929 and renovated/expanded by present owner directions. The craftsmanship as well as the set- and beach! Exquisitely finished with every imagi- ond to none, and the most fabulous floor plan for to perfection! Indescribable carved woods and ting is incomparable. The property includes a nable luxury and detail including state of the art grand scale entertaining! imported marble floors throughout. three-bedroom guesthouse! systems and custom flooring.

Bratenahl--$2,295,000 Russell--$2,099,000 Moreland Hills--$1,995,000 Chagrin Falls--$1,975,000 Absolutely extraordinary custom built contempo- Quite simply the most elegant and outstanding Luxury and attention to detail beyond compari- One of the most notable historic homes in the vil- rary in private gated enclave offering unobstructed traditional property sited on a spectacular lake son, this one of a kind home has multi million lage of Chagrin Falls sited on the most spectacu- Lake views! The finest quality materials through- front lot with breathtaking views in all directions! dollar improvements and additions! Exquisitely lar lot with breathtaking views of the river and wa- out, including state of the art electronics, lighting, This home defies description and offers the most designed for today's living featuring state of the terfalls! The present owner has invested over $1.5 and incredible use of woods and granite. Dramatic outstanding quality finishes, every luxury and art systems and natural materials throughout. million in improvements including a magnificent 2 story great room with walls of windows and the amenity! A grand marble reception hall opens into Breathtaking grounds with pool, stone patios, and master suite addition,and an absolutely extraordi- most spectacular 2 story granite fireplace. the spectacular formal main rooms. an outdoor kitchen! nary guest cottage!

Hunting Valley--$1,795,000 Hudson--$1,750,000 Moreland Hills--$1,695,000 Pepper Pike--$1,650,000 Absolutely incredible home and magnificent set- Truly remarkable, this one of a kind home is a Absolutely spectacular home! Exceptional design Builders own remarkable and truly spectacular ting! One of a kind with a French country flair fea- showplace both inside and out! Sited on over 5 and decor throughout! A grand entrance opens home! Exquisite French Country stone and cedar turing 17th century hand carved paneled walls in breathtaking acres with the most incredible land- into the magnificent 2 story living rm and banquet manor built with the finest materials and every the breathtaking great room imported from scaping, pond, and cascading water features! De- size dining rm. The kitchen is truly state of the art luxury amenity! Extraordinary floor plan high- France, the most exquisite library which was in signed for grand scale entertaining and offering offering every amenity for the true gourmet chef lighted by the most gorgeous kitchen opening the original Dodge mansion and a kitchen/hearth every imaginable luxury and amenity. Lower level and opening onto a fabulous, 2 story glass walled into a hearth room with fireplace and glass walled room 2nd to none! offers a full swing golf simulator! octagonal eating area and hearth room! sun room also with fireplace!

When buying or selling your home.

Just ASK Check out Adam S. Kaufman all of Adam’s 216.831.7370 listings at Company Top Producer www.justaskadam.com 2002-2014 3550 Lander Road, Pepper Pike, OH 44124 20150309-NEWS--20-NAT-CCI-CL_-- 3/6/2015 3:16 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 PROJECT continued from page 5 eases. Shah said those are the com- The big picture rather bluntly. panies that show the most promise The Harrington Project, however, “We’ve got a lot of traction and in turning the state, and particular- isn’t focusing its efforts only in are much further along than we had ly Northeast Ohio, into a hub for the expected, but we are not successful. pharmaceutical industry much like Northeast Ohio. Period.” Boston or the San Francisco bay Last year, the Harrington Discov- area. ery Institute formed a partnership with the University of Oxford to sup- A magnet of innovation One recent example of such a company is OptiKira, a Cleveland port physician-scientists and their Last summer, the state of Ohio company based on intellectual drug development efforts. Moreover, gave a strong vote of confidence in property licensed from the Univer- just recently, one of BioMotiv’s the effort through a grant worth up sity of California, San Francisco, British spinoffs — Orca Pharmaceu- to $25 million, which was the and the University of Washington ticals — announced it could receive largest awarded given through the that BioMotiv spun out last earlier up to $122.5 million from pharma- state’s Third Frontier economic de- this year. The company plans to de- ceutical giant AstraZeneca if it meets velopment program in nearly eight velop new therapeutics that can certain milestones in developing years. The full funding, of course, is prevent cell deaths — a medical new anti-inflammatory drugs over contingent on the project meeting scenario often associated with dis- the next three years. certain milestones, largely based on eases such as diabetes and amy- While 2014 was a year of rapid its ability to create jobs, spin out otrophic lateral sclerosis, or ALS. growth for the Harrington efforts, companies and garner national Two of the three scientific the effort’s leaders say 2015 will be recognition for the efforts. founders of the project — Dr. Scott a year focused on refining the pro- At the time, an independent eval- Oakes and Dr. Feroz Papa, both of ject. The discovery institute recent- uator, YourEncore, gave the project the University of California, San ly hired two new directors — one in a glowing review, but noted there’s Francisco — are members of the operations and another focused on no guarantee the physician-scien- first class of Harrington Scholar-In- strategic initiatives — to handle the tists or companies they create novators, an annual grant competi- growth. This year, they hope to hire would remain in Ohio over the tion from the Harrington Project to a third director to oversee its Inno- long-term given the state’s relative- support promising science. vation Support Center, which pro- ly weak position in the pharmaceu- “We’re bringing great science vides mentoring and other business tical industry. here, great innovations here and services to the physician-scientists However, Baiju Shah — BioMo- forming something that will be at- being funded by the project. Business Succession Planning Series tiv’s CEO — said Harrington’s tak- tractive to the pharmaceutical in- “I don’t know if anybody could en a particular interest in platform dustry partners who want to form have predicted this, but it’s enor- Family companies, or ones whose technol- larger operations around that hub,” mously gratifying,” said Dr. Mukesh r5SBOTGFSUPOFYU ogy could apply to different dis- Shah said. Jain, the institute’s scientific director. Transfers and HFOFSBUJPO r%JWJEFOESFDBQ Recapitalization r&TUBUFQMBOOJOH Wednesday, March 11, 2015 ROBOTICS Noon to 1:00 p.m. continued from page 8 McDonald Hopkins LLC March through the end of May. Fifth Third Center, 600 Superior Ave., East, Suite 2100, Downtown Cleveland At the Cuyahoga Valley Career Cen- ter, the program will allow the school Register at mcdonaldhopkins.com or call: 216.348.5400. to bring in “equipment, training and certification programs” from big names in manufacturing, such as Fanuc, said executive director Joseph Dannemiller. Being part of a statewide consortium gives the center a stronger voice, Dannemiller said. McDonald Hopkins LLC An expansion at the Cuyahoga 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)r Valley Career Center will double the Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member center’s current manufacturing foot- $IJDBHPr$MFWFMBOEr$PMVNCVTr%FUSPJUr.JBNJr8FTU1BMN#FBDI print, Dannemiller said, adding GPD GROUP about 3,200 square feet to the exist- A rendering of the Ramtec addition at the Cuyahoga Valley Career Center. mcdonaldhopkins.com ing 3,500 square feet available for manufacturing now. citing” program will especially draw on making sure graduates are pre- According to a news release, the in high school students. That’s im- pared to take a job after school or to bulk of its approximately $1.5 mil- portant in terms of closing the so- further advance their education in a lion portion of the grant will be used called skills gap in manufacturing, field. The Ramtec program includes to buy equipment for training in “ro- because a big part of the problem is partnerships with manufacturers botic controls, mechatronics, and in- getting enough people into the and post-secondary education or- dustrial maintenance,” with $50,000 pipeline, he said. ganizations. going toward training and certifica- The partnerships with industry tion for instructors. Filling a need are important, as the last thing the The career center’s board of edu- educators want to do is produce cation in September approved a The program is “definitely need- graduates who don’t align with in- $700,000 transfer from its general ed,” said Kathleen Sawyer, execu- dustry needs, Gratz said. He wants fund to its permanent improvement tive vice president of Esterle Mold businesses to view those partner- fund for the expansion, as just and Machine Co. Inc. in Stow, as ships as investments, not philan- $250,000 of the grant is going toward manufacturers need more people to thropy. facility renovations. enter the industry. She also high- The robotics and automation The groundbreaking for the pro- lighted the training possibilities the jobs for which students are training ject will be March 31, and it’s expect- program will have available to com- are “pivotal” ones as companies ed to be completed by January 2016. panies, too. move toward a stronger focus on The project will be done in phases, “They’re definitely listening to automated processes, Gratz said. though, and the existing lab should the manufacturing companies’ They need people to maintain the be refurbished and ready this fall, voices,” Sawyer said. equipment, because “when this Dannemiller said. This program really helps to build stuff breaks down, production The additional space means the a “career pathway” for manufactur- stops,” he said. center should be able to offer classes ing, which Steve Gratz, senior exec- Speelman of the Tri-Rivers Ca- for adults and high school students utive director for the Center for Stu- reer Center said he thinks the concurrently, instead of having to dent Support and Education Ramtec program will help to make only offer adult classes in the Options at the Ohio Department of communities more attractive to evening. The adult training will be Education said has been an increas- businesses — everyone has tax available to individuals who want to ing focus for career centers in re- abatements to offer, he said, but the attend on their own, in addition to cent years. Instead of just preparing communities that can boast a any contract training companies students for a single job like they strong workforce will stand out. might offer. did in the ’70s, today’s career-tech- “That’s the community that’s go- But he thinks the “flashy and ex- nical education centers focus more ing to be successful,” he said. 20150309-NEWS--21-NAT-CCI-CL_-- 3/6/2015 2:30 PM Page 1

JANUARY 5 - 11, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

Strategic Wealth Partners is pleased to host: Strategic Insight Webinar SETTING UP AN EMPLOYER SPONSORED RETIREMENT PLAN

Thursday, March 26, 2015 Webinar will start promptly at Noon and last approximately 60 minutes THE ELEVATION GROUP The band Red Wanting Blue kicked off the Cathedral Concerts series with a performance last December. Strategic Wealth Partners • 5005 Rockside Road, Suite 1200 • Independence, Ohio Register at [email protected] MUSIC CLE AND CPE CREDIT APPLIED FOR continued from page 5 the series is producing only one or from October through May, the cathedrals with similar amenities as two concerts a month, it isn’t com- cathedral puts on free classical and Elevation explores the possibility of peting on a nightly basis with, say, jazz concerts for downtown work- hosting concerts in other markets, the House of Blues or the Beach- ers and residents as part of its Young said. land Ballroom. In many cases, he Brownbag Concerts series. said artists who frequent the same If anything, the Cathedral Con- Although Northeast Ohio’s pop- SUMMIT AWARDS ulation has remained stagnant, a cities are “looking for a different certs series is exposing the cathe- PRESENTED BY PRESENTED BY slate of new concert venues have look” to give their fans a new expe- dral and its Episcopal congregation opened shop in recent years, all of rience. Take Red Wanting Blue, to new audiences, said Trinity which are, to an extent, fighting for who performed at the cathedral in Cathedral’s dean, The Very Rev. their share of the region’s limited December and is returning for an- Tracey Lind. entertainment dollars. other sold-out show at the House of “For us, it’s an opportunity to The Music Box supper club, for Blues this Saturday, March 14. welcome 500 people to a concert one, opened in The Flats last year “I think that we have an opportu- and have them see the beauty of the MARCH 30 JULY 23 with success, and the Hard Rock nity to garner attention for the shows space, hear great music and feel a Women of Note Rocksino in Northfield has done an that wouldn’t be the same if we were sense of hospitality,” said Lind. Deadline for nominations admirable job in attracting some big- doing them at a normal, traditional “What can be better? For us, we’re Summit & Awards ticket acts since opening in late 2013. concert venue,” Young said. “Every just hoping some people will realize However, Young said Cathedral show we’ve done has sold out.” this is a cool place and will want to CrainCleveland.com/WON Concerts isn’t designed to compete Trinity Cathedral, of course, is no learn more. We’re hoping to have a with those other venues. Given that stranger to music. Each Wednesday long partnership with Elevation.”

Nowacki Asset Management LLC

Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period Management (NET) Million Return Million May 2011 - Year End -7.46% $925,400 -6.37% $936,300 2012 29.99% $1,202,927 16.00% $1,086,108 2013 51.76% $1,825,563 32.39% $1,437,898 10/31/2014 21.59% $2,219,459 10.99% $1,595,988

Note: Returns are shown in U.S. dollars after fees. Date of inception for Nowacki Asset Management is May 2nd, 2011.

Nowacki Asset Management (NAM) is a registered investment advisory firm specializing in value-oriented investment management. All client assets are included in one composite and invested using a value-oriented strategy. NAM claims compliance with the Global Investment Performance Standards (GIPS®). The S&P 500 Total Return index is subject to volatility and the NAM composite may or may not be more volatile than the index. Past performance is not aguarantee of future performance. Investments carry risks and the potential for loss. Results as of 10/31/2014 are still subject to final verification by an independent third-party. NAM only uses short-term margin or leverage to buy securities after a client commits to deposit funds and the funds are in the process of being transferred, but the money has not yet completed the transfer process. To receive a list of composite descriptions of NAM and/or a presentation that complies with the GIPS standards, contact Michael T. Nowacki at (440) 488-6936 or write Nowacki Asset Management, 29525 Chagrin Blvd. Suite 301, Pepper Pike, Ohio 44122, or [email protected]. RIDE RTA TO TOWER CITY 20150309-NEWS--22-NAT-CCI-CL_-- 3/6/2015 3:31 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 9 - 15, 2015 CONVENTION continued from page 1 walked him through the details, “We’re uniquely qualified be- the plan and thumb drives to the done, I knew that box was home of Ohio Republican Chair- and it was literally that simple. He cause we’re design builders. We small audience. Many members of checked.” man Bob Bennett. was like, ‘OK, we got it.’” have to sit in a customer’s shoes all the Cleveland host committee saw How important was it in Cleve- Pinney remembers Harris telling Geis — already in a cauldron of the time,” Geis says. the finished product for the first land’s eventual victory? him, “If you ever bid again, you construction work with The 9 and “Google is a wonderful thing. time during that presentation. “Without the presentation, I may want to consider converting the new county headquarters — About six of us hit Google and tried Geis senior designer Brandon don’t know if we win,” says Pinney, that parking garage into the media may have said that, but when asked to figure out what media centers Kline spoke during much of the ses- who’s now managing partner at center.” what he was truly thinking, he gives looked like in the past. It’s kind of sion, and he remembers clearly Kohrman Jackson & Krantz. A media center is crucial to any a different answer. shocking how little information what happened when things He says he’s not comfortable major political convention. And the “‘How in the f—- are we going to there is about past media centers wrapped up. putting a price tag on the cost of a closer it can be to the main conven- put this together?’ That’s the hon- on the web.” garage conversion, only that it tion arena, the better — fewer bus- est answer,” Geis says, laughing. There was also the tiny detail would be “several million dollars.” es, better security and happier jour- “Then we just started to figure out that the convention would be tak- “We’ve always waited for And Geis refuses to put an esti- nalists. The Gateway East garage is how to get there. One bite at a time. ing place in the summer, with the someone to come in out of mate on how many hours were put as close as you can get. If you try to eat an entire apple in parking lot being used often for In- Chicago or New York to into the project or how much the Pinney filed away the conversa- one bite, you’re going to choke on dians games. show us how to do pro bono work was worth. tion. When he was called on again it, so we started to take bites of the “We had to essentially build a “I don’t want to frame it in that to prepare a bid for the 2016 con- apple. Where is the security zone? couple-hundred-thousand-square- something. Clevelanders regard. I never paid attention to vention, he made sure to include a What do we know about past con- foot office building inside of a park- need to do for Cleveland what it would cost.” retrofit of Gateway East as a media ventions? One bite at a time.” ing garage, build it, have the con- what Cleveland needs. ... Geis does say why he did the pro- center option. The first bites didn’t taste so vention and then tear it down in If we don’t pull ourselves ject for free. “We didn’t have, at the time, any good. less than a 30-day period,” says “We’ve always waited for some- feasibility analyses done,” Pinney As Geis scrambled his team, he Geis. up by our own bootstraps one to come in out of Chicago or says. “It was an idea, a proposal.” asked for detailed computer-aided The four-level building would — and we are — nobody is New York to show us how to do Then came April 2014. With design (CAD) drawings of the need to be completely enclosed going to do it for us.” something. Clevelanders need to do Cleveland one of five remaining garage. Pinney didn’t have any, and temperature controlled. It for Cleveland what Cleveland needs. cities in the running, Pinney learned only “barely legible” blueprints would need carpet, drapery and – Greg Geis No one is going to come and do it for co-owner, Geis Companies that the party’s site selection techni- from when the structure was built new lighting. It would need triple us. There is a team of people within cal team would be making a visit in two decades before. redundant power with generators the city that get that. It’s not about less than two weeks and that they “There were no original draw- on the roof. It would need a lounge. “We ended the presentation and how much money I can make or if I wanted to see specifics: details, ren- ings,” says Geis. “I sent a team of It would need world-class technol- the first question was, ‘How are you am guaranteed a contract. If we derings and drawings. people over to survey the property. ogy and connectivity. It would need going to handle the light levels in don’t pull ourselves up by our own Problem was, there weren’t any. We went and had to redraw the en- restrooms. this space?’ It was at that moment, bootstraps — and we are — nobody Pinney remembers about a tire structure.” Geis credits Zenith Systems for I looked at our electrical engineer is going to do it for us.” dozen people on the convention Then there were the specs for the doing much of the technology who helped put this together, and I Geis says he’s noticed a change team discussing the situation. project. Described in a single para- work. The rest fell on a core group said to myself, ‘If that’s the ques- in culture in the city since the “A couple of names were thrown graph, there were only two, accord- of seven people at Geis who worked tions we’re getting, we must have county corruption scandal. He says out as people we could consult,” ing to Pinney: The party needs “24 hours a day” to design a com- sold them on everything else.’” it’s the reason Geis Companies Pinney says. “But there’s really only 300,000 square feet and that the prehensive center that could serve Pinney remembers the moment moved offices into the city. one company in town that can put space “needs to serve the media.” all the needs of the media, from a the same way. “You’ve got a Democratic coun- something like this together so “The paragraph set us back a rooftop lounge to work stations to “The reaction was universal ty and a Democratic city that quickly. The question was whether bit,” admits Geis. “There was a briefing areas. across the board: They believed worked harmoniously to get the they were crazy enough to take it complete lack of detail associated that we could do it. It was probably Republican National Convention on.” with it.” * * * the most competent and advanced here. Nobody looked at it whether The challenge for Geis and his On the day of the RNC tech presentation they’d seen at this it was Democrats or Republicans. * * * team of engineers and designers be- team’s visit, a section of the parking stage. … Nobody’s ever converted They looked at what was right for Pinney sent an email to Geis ask- came to not only create a plan to garage was staged with red carpet, a garage into a media center. the city. They throw politics out the ing for help. temporary retrofit a parking garage lights, drapes and a huge television “This was one of those boxes I window. “Within two minutes, he replied, and to do it in 10 days but to do it by for the presentation. had not been able to check in 2008. “That would have never hap- ‘Call me,’” remembers Pinney. “I assuming what the party wanted. Geis distributed bound copies of As soon as their presentation was pened 15 years ago.” REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

LAND BUSINESS SERVICES

Vermilion Prime Multi-Family Land C. W. JENNINGS INDUSTRIAL EXCHANGE 4acres 150 ft. frontage zoned comm. $275,000.00, 8 acres 280 ft. frontage SW Cleveland Suburbs FLYNN Global Expansion Consulting zoned comm. $345,000.00, 125 acres 900ft. frontage with 1500 ft. frontage 200-500 Units, Mixed-use, ENVIRONMENTAL Construction • Acquisitions exposure to Rt. 2. $3,300,000.00, PUD zoning available. Possible owner fi- 5 Stories Entitled nancing all parcels. Location Vermilion Twp. Rt2 & Rt 60 interchange area. All UST REMOVALS • REMEDIATION Exporting • Financing parcels have sewer, water, gas and electric. Broker owner of 4 acre parcel. Principals Only DUE DILIGENCE INVESTIGATIONS Winterstein Realty 440-225-8553 [email protected] 216-389-2244 (800) 690-9409 (855) 707-1944

www.FixedIncomeSpecialties.com For daily on-line BUSINESSES DON’T The one stop shop local Bond List your Commercial, Trading! updates, sign up @ FOR SALE FORGET: Michael K. Dougherty, Bond CrainsCleveland.com/Daily Industrial,Investment Crain’s Cleveland Business Consultant Steel Erection & on-line @ INVESTMENT CrainsCleveland.com 216-338-2446 Fabrication Property, Luxury Property OPPORTUNITY Sales 3.6M Asking $550,000 or Retail Space Here! WAREHOUSE FOR SALE Investors www.empirebusinesses.com 440-461-2202 SPACE We have used forklifts, all makes, CASH NEEDED Crain’s Cleveland L.P., electric. 32” Minute Man Expand remodel reduce debt. $3,300 Scrubber. 17” Hyko busy east side restaurant. Business’ classifieds will help you fill that space. LEASE: Scrubber, $1,500. 27” Concrete Selling a Business? Industrial/Warehouse L.P. Polisher, $2,700. great location. We also have Tenants. Send interest card to Ohio Business Brokers Assoc. Contact 85,000 SF. 3rd floor. 216-641-7897 P.O. Box 826 WWW.OBBA.ORG Denise Donaldson at 216.522-1383 $1.25+/SF/Yr, net. Willoughby Ohio 44096 Just east of CSU & close to interstates. We also have USED MEZZANINE. Find hundreds of businesses. [email protected] WE HAVE STRETCH WRAPS Show name, phone, best time Find a good broker to help. Ross 216.431.6633 YOU CAN AFFORD. to call. Ownership interest [email protected] It’s Stys Inc. since 1962. available...... Buying a Business? 20150309-NEWS--23-NAT-CCI-CL_-- 3/6/2015 3:04 PM Page 1

MARCH 9 - 15, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS We won’t ask if he stopped making tires for bicycles. Until water-based growing process that requires MARCH 2 - 8 now, sort of. no soil. has seen the movie Goodyear bicycle tires will be available Greg Malone, who manages the college’s Even Dr. Toby Cosgrove can crack a joke again soon, thanks to New Jersey-based plant science and landscape technology The big story: A vital piece of funding for the about his not-so-secret fondness for the Kent International, which signed a license program, said the goal was to show how en- renewal of Public Square fell into place on Fri- sleek, white aesthetic characteristic of many agreement to make tires under the trepreneurs can launch hydroponics-based day, March 6, with the announcement of an of Cleveland Clinic’s buildings. Goodyear brand, to go along with a new bi- farms to yield produce throughout the year agreement that as much as $7.5 million of prop- “I love the look — 50 Shades of White,” cycle-manufacturing plant it’s building in and fit into the region’s growing farm-to- erty tax money intended for improvements to the the Clinic CEO cracked after welcoming at- South Carolina. table unit. The equipment to setup the op- Higbee Building instead will be used for the plan tendees to last week’s State of the Clinic ad- But you won’t have to buy a Kent bike to eration inside Tri-C’s greenhouse cost less to unify the four quadrants of Public Square into dress at the InterContinental Hotel near the roll on Goodyear tires. They’ll also be avail- than $3,000. a public park and gathering place. Cuyahoga health system’s sprawling main campus. able at retailers Walmart and Dunham’s this Tri-C said the harvested produce will be County Executive Armond Budish said he will The Clinic’s muted color palette, for in- spring. used at Café 4250 — the student-run restau- ask county council to pass legislation authoriz- stance, is a far cry from that of its regional ri- So why is Goodyear getting back into the rant on Tri-C’s Eastern Campus. ing the county to issue bonds backed by the tax val, University Hospitals. While the Clinic’s bicycle tire business? Turns out some of its — Timothy Magaw that will put the Group Plan Commission over new facilities are typically strewn with old customers have grown up and have the top of its initial $32 million goal for the whites, grays and hints of blue — think Ap- again embraced bicycling, as have their own These aren’t restoration. ple Store — UH’s often boast reds and kids. beiges. “This agreement was born out of con- statistics to savor sumer demand and serves as a natural ex- Revving up: Ford Motor Of course, the Clinic’s walls aren’t barren. Cleveland and Toledo are among the tension of our core tire business,” said Nan- Co.’s plant in Brook Park is The health system boasts an impressive, worst cities in America to save money based cy Ray, Goodyear’s director of Licensed producing yet another en- multi-million dollar art collection, which on statistics like low median household in- Products. “We couldn’t ignore the statistics gine. The company said the Cosgrove described in his book “The Cleve- comes and low average savings accounts land Clinic Way” as being designed to on the growth and popularity of cycling.” plant now is making its rates, according to a report by GOBank- “enhance, enliven, and inspire patients, — Dan Shingler new twin-scroll 2.0 liter ingRates. caregivers and the community — and ulti- and 2.3 liter EcoBoost en- GOBankingRates ranked the 100 most mately, to make the spaces more inviting gines. This is the first time Planting the seeds populated cities in America on five key fac- and uplifting.” — Timothy Magaw these engines are being tors including unemployment rates, sales of learning at Tri-C tax, median household income, median built in the United States. Ford’s Cleveland En- home price and each city’s average savings gine Plant, which employs more than 1,300 peo- What goes around comes In just a few weeks, Cuyahoga Communi- ty College will harvest leafy heads of lettuce account rate. Cleveland and Toledo share ple, already builds other EcoBoost engines, as around for Goodyear and a horde of plump tomatoes and peppers. 72nd place on the 2015 list. Columbus and well as a 3.7-liter V6 engine. Ford said the new, If you were a kid in or before the 1970s, Yes, in frigid and ice-covered Northeast Cincinnati, however, placed at the 26th and smaller turbocharged engines will give the com- chances are good you owned a bicycle and Ohio. 48th spots, respectively. pany and its customers more options. you rode on tires made by Goodyear. They This semester, the college added a hydro- The five best cities for saving money are were actually one of the company’s first ponics unit to its plant production classes to Atlanta; Jacksonville, Fla.; Honolulu; Hous- A place in history: The Cleveland Museum products, when it was founded in 1898 — showcase the region’s potential for year- ton; and Anchorage, Alaska. The five worst: of Art received a $19 million campaign challenge before there was an automotive market for round agriculture. The plants are grown in a Mesa, Ariz.; Riverside, Calif.; Long Beach, gift from Dealer Tire CEO Scott Mueller that larger, more expensive tires. greenhouse at the college’s Eastern Campus Calif.; Stockton, Calif.; North Las Vegas, Nev. nearly completes the institution’s decade-long By 1976, however, the company had in Highland Hills using hydroponics — a — Jeremy Nobile capital fundraising effort. Combined with Mueller’s past gifts to the museum, he now has contributed more than $23 million. That ranks him among the top donors in the museum’s his- WHAT’S NEW BEST OF THE BLOGS tory. The museum will acknowledge Mueller’s contributions by naming the suite of contempo- Excerpts from recent blog entries time in the gym, according to a study from rary galleries and East pavilion in his family’s on CrainsCleveland.com. medical blog BetterDoctor. honor. The blog ranked 85 U.S. cities on criteria including expenditures on parks per resi- Let it grow: University Hospitals plans to ex- Picture of health dent; the number of park acres per 1,000 pand its statewide footprint aggressively by There’s a lot of eye candy in a new rank- people; the percentage of residents at a bringing Samaritan Regional Health System in ing of the 50 most beautiful medical school healthy weight; and the percentage of resi- Ashland County into its growing enterprise. UH campuses in the United States, which puts dents who have exercised in the past 30 announced it is entering into the process of sign- the Case Western Reserve University School days. ing a letter of intent to integrate Samaritan Re- of Medicine at No. 16. Ohio’s best-ranked city was Cincinnati, gional, which is anchored by a 55-bed inpatient Online Masters in Public Health evaluat- and it was only No. 41 on the list. Cleveland hospital, into the health system. The evaluation ed “hundreds of medical schools” to come was No. 59, and Columbus was No. 73. process for the integration is expected to take ENTREPRENEUR: Chef Dante up with the final 50. The list “features med- The five most active cities in the country, several months. Officials expect a deal to be final- ical schools with amazing architecture, according to the ranking, are Aurora, Colo.; ized by mid-year. Boccuzzi structural prowess, campus integration, San Francisco; Oakland, Calif.; Albu- technological superiority and many other querque, N.M.; and Seattle. Least active? Two under 40: DDR Corp. filled out its new PRODUCT: Three new jarred sauces factors that were considered.” Laredo, Texas; Memphis, Tenn.; Birming- management team with the appointment of Boccuzzi, the owner of five Northeast Here’s how it describes the Case medical ham, Ala.; Detroit; and Lubbock, Texas. Luke J. Petherbridge as chief financial officer, ef- Ohio restaurants, brings a taste of his Italian school’s campus, which was established in fective immediately. Petherbridge, 35, takes the cooking to home kitchens with three new 1843 but hardly looks its age: Debt weight CFO role that previously belonged to David jarred sauces. Like a picture out of the Jetsons, the Case Oakes, 36, who on Feb. 11 was named president The sauces —Simple Marinara, Spicy Western Reserve School of Medicine is a A Cleveland woman provided the lead and CEO of the Beachwood-based real estate in- Sausage and Truffle Crèma — debuted com- space-age, stunning campus that boasts ge- anecdote in a Reuters story about the rise of vestment trust. mercially on Feb. 25 at the new Heinen’s nius design and gorgeous landscaping. Stu- heavily indebted seniors. grocery store in downtown Cleveland, and dents can enjoy the beautiful surroundings “When Wanda Simpson reached retire- Big in Japan: Cleveland biotech company now is available at other Heinen’s locations. at a lunch in the garden food court or on a ment a couple of years ago, the Cleveland Athersys Inc. is partnering with Chugai Pharma- They’re also available at danteboccuzzi.com leisurely stroll through the eye-catching mom had an unwelcome companion: ceutical Co. to develop and commercialize and in all five of Boccuzzi’s restaurants. parks. … Around $25,000 in debt,” the news service Athersys’ MultiStem cell therapy for ischemic “This has been one of my passions for a Case Western Reserve is the alma mater of noted. stroke in Japan. Chugai will be responsible for couple of years when people started to ask several illustrious developers: Paul Buchheit, The former municipal administrator the development and commercialization of Mul- me if I would ever sell them,” Boccuzzi said creator of Gmail; Craig Newmark, master- “wrestled with a combination of a second tiStem in Japan, and Athersys will have responsi- in a statement. “The partnership with mind of craigslist.org; and Peter Tippett, mortgage and credit-card bills that she bility for product supply. Athersys will receive an Heinen’s makes it the perfect match to bring originator of Norton AntiVirus. In 2002, the racked up thanks to health problems and a up-front cash payment of $10 million from these sauces to the public. Case Western Reserve School of Medicine be- generous tendency to help out family mem- Chugai. It is eligible to receive milestone pay- All three sauces originally started at Boc- came only the third college ever to receive the bers,” according to the story. ments of up to $45 million if it reaches certain de- cuzzi’s signature restaurant, DANTE, and top review possible from the Liaison Com- “I was very worried, and there were a lot velopment, regulatory and sales milestones. are currently in menu items in at least one mittee on Medical Education, the organiza- of sleepless nights,” said Simpson, 68. “I of all five of his restaurants: DANTE, Ginko tion that grants accreditation to U.S. med- didn’t want to be a burden on my children, Eat up: The Cleveland Indians are once again and Next Door (all in Tremont), D.C. Pasta ical degree programs. or pass away and leave a lot of debt behind.” picking up their food game at Progressive Field. Co. in Strongsville and DBA in Akron. There’s only one other Ohio medical Reuters reports that many people are in a The team announced that Great Lakes Brewing The sauces “are all natural and ready to school on the list: the University of Cincin- similar position Co. and Dynomite Burgers will serve their food use with no preservatives,” Boccuzzi says. nati Academic Health Center, which ranks “Among families headed by those 55 or and drinks at the ballpark this season. They’ll They retail for $6.99 for the Marinara and 22nd. older, 65.4 percent are still carrying debt join three other big names in the local food scene Sausage flavors, and $7.99 for the Truffle Topping the list is the Duke University loads, according to the Washington, D.C.- — Melt, Barrio and Sweet Moses — that were an- Crema. School of Medicine. based Employee Benefit Research Insti- nounced in January for Progressive Field’s new tute,” the news service said. “That is up Right Field District, a major renovation of the Send information about new products Fit? Just a bit more than 10 percentage points from 1992, ballpark aimed at improving fan experience. to managing editor Scott Suttell when only 53.8 percent of such families at [email protected]. Ohioans could stand to spend some more grappled with debt.” 20150309-NEWS--24-NAT-CCI-CL_-- 3/5/2015 1:19 PM Page 1

JOIN US AND SAVE WITHOUT SETTLING GET $150 ACCOUNT CREDIT FOR YOUR BUSINESS for each smartphone line. Credit available for each port-in-eligible number brought to Verizon & activated on new 4G LTE smartphones. Requires new 2-yr. activation on $34.99+ plans. Offer expires 3/31/15.

Be unstoppable. Enjoy up to 48 hours of battery life,1 and get up to 8 hours of battery life in just 15 minutes† with Turbo Charger. $14999 (32 GB)

New 2-yr. activation on $24.99+ plan required. Offer expires 3/31/15.

Get the coverage, speed and reliability your business needs with America’s Most Reliable Network. Experience why more small businesses choose Verizon than any other wireless carrier.*

AMERICA’S LARGEST AND MOST RELIABLE 4G LTE NETWORK

CALL: 1.800.VZW.4BIZ | CLICK: vzw.com/business-bill-credit | VISIT: vzw.com/storelocator

1Based on an average user profile that includes both usage and standby. Actual battery performance will vary and depends on signal strength, network configuration, features selected and voice, data and other application usage patterns. †Charging speeds vary based on battery emptiness; usage based on average user profile and may vary based on network signal, configuration and usage patterns. * Results based on third-party study. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan & credit approval. Up to $350 early termination fee/line. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. © 2015 Verizon Wireless. I4250