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$2.00/NOVEMBER 10 - 16, 2014 FAST Find out who the fastest-growing businesses in Northeast Ohio Above, the Cleveland Clinic’s Richard E. Jacobs Health Center in Avon, which opened in 2011. See page 55 for are and how they a roundup of health care-related building projects, acquisitions and other activities in Lorain County. 50 made our list By JEREMY NOBILE [email protected] Healthy competition here competitors saw risk, Alego Health saw opportunity. W Jonathan Levoy, executive vice president at Alego Health, a health care IT solutions and service provider, said his company Lorain County is the latest battleground for Northeast Ohio’s largest flocked to those markets across the country that others simply “wouldn’t touch.” And whether it comes to leveraging market oppor- health care providers, who see it as ideal spot for more development tunities, implementing new services or investing in talent, the No. 1 company in the Crain’s Cleveland Fast 50 said one of the keys to its By TIMOTHY MAGAW earlier this year and forging a relationship with Mercy success is taking risks. [email protected] Health and its non-religious auxiliary, HealthSpan. Plus, “You need to take risks and you need to have courage and you UH recently announced plans in Avon to build its own need to go out there and try things that are really outside your com- Cleveland Clinic had only a modest presence in $17 million rehab hospital, a joint venture with Centerre, fort zone …,” said Jacqueline Forestall, Alego president and founder. Lorain County until late 2011, when it opened its another for-profit health care company. With revenue growth of 1,072% over the past five years, Alego sprawling, 190,000-square-foot Richard E. Jacobs “As a city, you always dream of having a niche,” Avon topped the list of fast-growing companies that was partially unveiled Health Center in Avon. With its iconic mirrored Mayor Bryan Jensen said. “It seems like the perfect area Wednesday at Crain’s inaugural Fast 50 event at the Western Reserve façade and high visibility from Interstate 90, it was a for all this to develop.” Historical Society. dramatic statement by the regional health care jug- What has transpired in Lorain County is something Data were crunched by accounting partner Apple Growth Partners gernaut — though only a hint of what was to come. all-too-familiar to Cuyahoga County residents: a spirit- to identify businesses achieving the most substantial margins of rev- Since then, the Clinic has continued its conquest ed war for their health care dollars. But now, with the enue growth between 2009 and 2013. Companies had to be at least in eastern Lorain County, having opened an emer- population surge in eastern Lorain County, local health five years old and have accrued a minimum of $5 million in revenue gency department, acquired a large independent systems are staking a claim. Take Avon, one of Greater at the end of 2013. medical practice and broken ground on a new rehab Cleveland’s fastest-growing communities, where the Crain’s publisher John Campanelli said the success of businesses hospital — a joint venture with Select Medical, a pub- population surged by 85% between 2000 and 2010. The being honored “prove there’s a transformation going on in Cleve- licly traded health care company. Also, the system re- Clinic’s Avon-based health center quickly has become land.” cently broke ground on a $143 million inpatient hos- the health system’s busiest family health center and “Like much of the Midwest, Northeast Ohio is steadily recovering pital in Avon — a first for the city — that will be built grown to average 42,000 patient visits each month. from the downturn of the last decade,” said Sean Richardson, presi- onto the north side of the Jacobs health center. “We focus on our mission, which is to provide health dent and CEO of the North Coast region for FirstMerit Bank, title At the same time, the Clinic’s chief rival — Univer- care throughout Northeast Ohio,” said Brian Donley, sponsor for this year’s Fast 50 program. sity Hospitals, a historically East Side-centric system president of the Clinic’s community hospitals and fam- Despite their industries, the top companies enjoying the — staked its own claim in the western county by ily health centers and the incoming chief of staff. “We’ve rolling EMH Healthcare in Elyria into its enterprise See HEALTHY, page 55 See FAST 50, page 12 THE TOP TEN: Voters aren’t about to pay more Ballot issues that asked for new money were most often rejected

By JAY MILLER willing to sign off on spending than they have been [email protected] since the recession hit in 2008. Also, school issues fared slightly better than munic- Despite their frustrations with the sluggish ipal tax issues, suggesting that more voters are believ- economy and national political leaders, ing that better education of children is increasingly Northeast Ohio voters last week generally important. were willing to support renewals of city and Jurisdictions in the seven counties of the metropol- school tax issues. But most of the region’s gov- itan area put 149 money issues before voters last ernmental bodies that sought additional money week. The issues ran from general income tax levies had a hard time convincing voters they needed the to levies for specific purposes such as road improve- increases to maintain the levels of service they be- ments, police and fire departments and school oper- lieved citizens want. ations and capital improvements. FULL The results from the money issues on the Nov. 4 Of those 149 issues, 108, or 72.5%, passed. Howev- ballot might have been better, one keen observer not- er, only one-third of the 57 issues that asked for new RANKINGS ed, had voter turnout been higher. (Turnout statewide money — 19 levies — passed. was about 40%, the lowest in even-year elections Of the school issues, 18 of 21 renewal issues passed, AND COMPANY since the Ohio Secretary of State’s office began track- while only six of 16 issues asking for additional PROFILES — PAGE 15 ing turnout in 1978.) Still, taxpayers appeared more See VOTERS, page 7 20141110-NEWS--2-NAT-CCI-CL_-- 11/7/2014 2:36 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014 A year of milestones for sports marketing firm Westlake company is finally able to bring in former IMG agents and has success with debut of tournament

By KEVIN KLEPS [email protected]

Milestone Sports Management was formed in 2012, but it didn’t become whole until two years later. The Westlake company, which, according to Ben Cooke, is a “niche sports marketing agency” that focuses solely on golf, was started by CONTRIBUTED PHOTO Cooke and Jon Wagner. The Cleveland Open will return to the Lakewood Country Club — but with a new name, the Rust-Oleum Championship — on June 11, 2015. Its first year was tumultuous. Two weeks after Wagner left IMG, where ner said of IMG’s lawsuit. “I didn’t the only member of Milestone’s tournament. dance on the Web.com Tour, and he was co-managing director of IMG realize we were that valuable. I five-employee firm who isn’t an surveys completed after the tourna- Golf’s North American business, in thought we could step away and no IMG alumnus. The company’s oth- Cleveland Open is rebranded ment showed a 93% spectator sat- April 2012, he was sued by the sports one would care that much. They er full-time employee is Cameron During Wagner’s 12 years at isfaction rating. management giant, which claimed obviously felt differently and did Marcus, a former IMG intern who IMG, which moved its headquar- The tournament, with a budget Wagner violated his employment the best they could to keep us out of manages the day-to-day logistics ters to New York in 2010 (50 years of “a little over $1 million,” was agreement by soliciting IMG clients the market. But the day came that for some of the 28 golfers Milestone after it was founded in Cleveland), “about a break-even proposition” and employees. At the same time, we were unencumbered.” represents. he said, “We realized we really did- in its first year, Cooke said. IMG went after former senior vice That day occurred this past Included among Milestone’s up- n’t do anything to give back to That should change in 2015, president Kevin Lynch and former spring, when Lynch and Stacy, after and-coming clients is Sam Saun- Cleveland.” thanks to a title sponsorship with player representative Jeff Stacy, who what Cooke calls a “pretty nasty lit- ders, a grandson of Arnold Palmer That opportunity was presented Rust-Oleum that Milestone and the bolted the company soon after Wag- igation” with IMG, were finally free who is a full-time member of the to Wagner’s new company after a Illinois-based company will formal- ner. to join Milestone. PGA Tour for the first time in 2014- year of discussions with the ly announce on Tuesday, Nov. 11. In August 2012, Wagner agreed to “It all came together at once,” 15, PGA regular Andrew Loupe and Web.com Tour — a professional Cooke said Rust-Oleum is paying “a pay IMG, whose golf division still has Wagner said. “In many ways, (the Harold Varner III, a 24-year-old circuit young golfers use as a significant fee” to be the title spon- its U.S. headquarters in Cleveland, court-induced delays) helped us. Akron native who was 30th on the springboard to the PGA Tour. Last sor of the tournament, which is be- an undisclosed sum to settle a We were able to do some things Web.com Tour money list in 2014. June, the Cleveland Open — hosted ing rebranded as the Rust-Oleum breach-of-contract lawsuit. Court fil- repping golfers and corporate Milestone also has four corpo- by the Greater Cleveland Sports Championship. Rust-Oleum is ings said Wagner resigned after his clients. But when it all came togeth- rate consulting clients and, though Commission and under the direc- owned by RPM International Inc., contract expired and the company er, since then it’s been a blast.” Wagner says they “aren’t in the tion of Milestone — drew more which is based in Medina. told him he would have to take a sig- Cooke, who left Jones Day to event business,” the company in than 11,000 spectators to Lakewood The move is a critical one for a nificant pay cut. form his own law practice, Cooke & 2014 made a successful debut as Country Club. Cooke said the event group that has lofty goals for 2015 “I was surprised, obviously,” Wag- Co. LPA (which he still operates), is the owners of a professional ranked among the top five in atten- See MILESTONE, page 55

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Flying Fig restaurant owner and 6)LQGXVWULDOIDFLOLW\ chef Karen Small knows all too well Visit the perils of posting job openings on )XOO\RFFXSLHGZLWKFUHGLWWHQDQW Craigslist or other websites. TerryCoyne.com DQGORQJWHUPOHDVH In many cases, those postings lead to a lot of interviewing and not much ·FOHDUKHLJKW Or Call Terry at hiring. %XLOWLQZLWKDQ 216.453.3001 “It’s kind of a nightmare to absorb DGGLWLRQLQ that kind of time and not get anything out of it,” said Small, whose modest eatery is nestled on Market 1350 Euclid Ave, Suite 300 Cleveland, Ohio 44115 Avenue in Cleveland’s Ohio City neighborhood. However, about a year ago, she got a call from the Society of St. Vincent de Paul Cleveland offering up a pre-screened worker and a promise to cover 50% of that person’s hourly wages during the Attn: Manufacturers & Warehouses training period. The offer was part of a pilot program the nonprofit launched to pro- LAST CHANCE vide more opportunities in the culinary industry for Northeast Ohio’s to capture rebate for upgrading your lighting! unemployed poor who want to work but lack experience or job-training No more FirstEnergy rebate for 2015 or 2016 accessibility. Now, the nonprofit is expanding the program into additional areas, • Brighter Lighting including nursing homes and hotels, • 50% Energy Savings to allow more businesses to find en- try-level, hourly workers who have • Fast Payback received some training and shown a willingness to work hard. At present, • FirstEnergy Rebate the nonprofit said it can afford to subsidize the wages of three to five • Replace HID high bays trainees simultaneously, though that • Upgrade T-12 fixtures number could increase as interest grows. GETTY IMAGES “As we get to know these people, CALL TODAY before it’s too late! we know they’re hardworking indi- ciety of St. Vincent de Paul Cleve- training program because if Rallings viduals who just need a break,” said land’s first foray into job training. didn’t work out, she could have the 330-931-3905 John Litten, executive director of the For almost 150 years, the nonprof- nonprofit feed them another [email protected] • www.ROI-Energy.com Society of St. Vincent de Paul Cleve- it has provided emergency assis- trainee. Thankfully, she said land. “We’ve been able to do this tance to those in need, so Litten Rallings turned out to be a great TURN-KEY LIGHTING PROJECT - NO INTERRUPTION with this small pilot program and said the job-training program was employee, and she’ll go back to the been able to connect people with a natural extension of the group’s nonprofit when she needs another employers and the training they mission. employee. need to give them that second Those participating in the pro- “He’s a great guy, and he comes chance.” gram must be motivated, physical- to work on time,” Davis-Noragon The program brought to Flying Fig ly and mentally capable of doing said. “He’s just so happy to have a Luisa Lopez — a native of Lorain the work, have some level of litera- job.” County who had worked as a home cy, not have a violent felony convic- The organization isn’t character- health aide but was looking for a cation and may not hold a college de- izing the job-training initiative as a reer change. gree. placement program or referral ser- Lopez had searched for a job for “There’s a need for someone to vice. Instead, the group’s leaders just less than a year before she was offer a hand and pull people up out say it is designed to pave the way for referred to the program. After being of the ditch,” Litten said. “This is a future employment for trainees screened, Lopez trained for 10 weeks way for us to look more systemic at who go through the program. Those at Small’s eatery. things. We can help teach a person who complete the program are Training can be an expensive to fish instead of just giving them awarded a certificate verifying process, and Small said she liked the fish.” they’ve earned real-life work expe- that the nonprofit covered half the Grovewood Tavern on the city’s rience. Still, that didn’t stop Lopez cost. She was impressed with East Side contacted the nonprofit from getting scooped up by Flying Lopez’s work ethic and ultimately after a dishwasher it had hired did- Fig. brought her on as a part-time em- n’t work out. The program brought “Within a week of finding out ployee working 30 to 35 hours a the restaurant Solomon Rallings, about the program, I was working week. whom Beth Davis-Noragon — the here and been working here ever “She became part of the family restaurant’s managing partner — since,” she said. Get the complete story. quite quickly,” Small said. said is always cheerful and does “It opened a door that wasn’t With more in-depth regional news coverage, along with Litten said the program is the So- whatever needs done. She liked the there.” the best of NPR national and world programming.

Volume 35, Number 45 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- 9911, or email to [email protected], or call 877- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- Kent State University, Kent State and KSU are registered trademarks and may not be used without permission. Kent State University, an equal opportunity, aﬃrmative action employer, is committed to attaining excellence through the recruitment and retention of a diverse workforce. 14-0049 REPRINT INFORMATION: 212-210-0750 tions), or fax 313-446-6777. 20141110-NEWS--5-NAT-CCI-CL_-- 11/7/2014 2:37 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 LIGHTING THE WAY WITH LEDs Energy Focus is using large Navy contracts to jump-start business and expand into D.C. area

By CHUCK SODER Schedule — which amounts to a contract ne- [email protected] gotiated in advance through the General Ser- vices Administration. So as of a few weeks After losing money for at least 15 years, En- ago, other government entities now can buy ergy Focus decided to focus its energy on a Energy Focus products through the GSA particularly powerful customer: The U.S. Schedule. Navy. So it’s no wonder why Energy Focus just Now the Navy is spending $15.6 million to opened an office with three employees in the replace some of its fluorescent tube lights Washington, D.C., area. with Intellitube LEDs made by the Solon- “The past few months definitely has been a based lighting technology company. breakthrough for us,” Tu said. They cost more than fluorescents, but The breakthrough could help Energy Focus they’re more efficient and they last longer — break a losing streak that Tu says has gone on important qualities when you’re in the mid- since 1999: During the current quarter, the dle of the ocean. publicly traded company projects that it will The first contract, worth $7.7 million, was finally produce positive EBITDA (earnings the biggest deal Energy Focus had ever closed. calculated before interest, taxes, depreciation That is, until it won the second contract, for and amortization are taken into account). $7.9 million. The growth should keep going, according Combined, they represent a big win for the to Tu, who would not say when he expects the company, which makes LED (light-emitting company to produce an actual profit. diode) products designed to replace fluores- Even after the two contracts are complete, cent tubes and other lights found in both of- the Navy will only be using Energy Focus fices and aircraft carriers. products in 10% of its light sockets, which The Navy started helping Energy Focus de- gives them room to buy more. velop and test the Intellitube in 2002, but for The Navy does like LEDs, judging from the most part it only installed them in small comments Navy secretary Ray Mabus made chunks. during an interview with the International That wasn’t good enough for James Tu, an Business Times this past May. investor who took over as Energy Focus’ exec- “If you change the light bulbs on a ship to utive chairman and CEO last year. He pushed LEDs, it saves 2 percent or 3 percent of total Energy Focus to get rid of a few other lines of energy on that ship,” Mabus was quoted as business and focus more on selling products saying. to the Navy officials who are making purchas- The Navy support also should help Energy ing decisions for each ship. Focus gain credibility and win more contracts Thus, the company, which has more than — with other branches of the military, with 60 employees, started working with more federal agencies and with commercial clients. than 40 new independent sales representa- Today, a lot of those companies buy LEDs tives tasked with selling to sailors. from bigger companies such as Philips and The strategy worked: Today, Energy Focus’ Cree. products are used on more than 160 Navy Seeing the Navy buy from Energy Focus will ships, up from 20 at the start of the year. show other customers that the company and The company’s work with the Navy also its products are reliable, according to Tu, who KATE LORD helped it land a spot on a so-called GSA See LIGHTING, page 8 James Tu, executive chairman and CEO of Energy Focus, holds a “frosted” LED tube. Garfield Heights building goes for $5 million

By STAN BULLARD property at more than $7 million for property tax [email protected] purposes. Pietro said the building can accommodate a Infinity Corporate Centre I, a blue-chip but tenant of 30,000 square feet in size in a single of- nearly half-empty office building in Garfield fice, which is valuable because the pace of office Heights, is in the hands of a Middleburg Heights- leasing picked up the past year. based investor group after it was sold for $5 mil- Moreover, the purchase includes a site for con- lion at an online auction conducted by Real Cap- struction of another building the same size, Pietro ital Analytics of New York. said, although the new owner’s first effort is to fill The buyer, CUA Holdings LLC, on Oct. 20 ac- the empty office space. All told, 40,000 square feet quired the building at 10500 Antenucci Blvd. from of space is empty in the building. C-III Asset Management LLC, an Irving, Texas- Garfield Heights-based developer Snyder-Can- based servicing agent handling disposition of a nata Interests developed the building near the loan referred to as JPM 2007-CIBC20, according to southeast corner of the I-480 interchange with Cuyahoga County land records. Transportation Boulevard in 2002, according to CUA Holdings is an investor group that was at- CoStar, a real estate data service. The lender’s rep- tracted by the property’s growth potential, said resentatives obtained the building through a fore- Rico Pietro, a Cushman & Wakefield Cresco bro- closure proceeding in U.S. District Court for the ker who represented CUA in its acquisition and Northern District of Ohio. will oversee re-leasing the building. Pietro de- The auction for the property was competitive, clined to identify the investor group beyond its le- according to Ira Krumholz, president of NAI Daus gal name. Management Co., who served as the receiver for CONTRIBUTED PHOTO The 93,000-square-foot building would cost the structure. There were “at least a half-dozen bidders” for Infinity Corporate Centre I, a Garfield Heights four times what the buyer paid if it were construct- “There were at least a half-dozen bidders,” office building that was sold for $5 million. ed today, Pietro said. Cuyahoga County valued the Krumholz said. 20141110-NEWS--6-NAT-CCI-CL_-- 11/7/2014 2:44 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

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Gregory B. West seventy-fifth 75 anniversary

David R. Horowitz PHOTO BY INGEMAR SVALA 216-861-7200 An MJM 40z glides past Moes Marine Service, a long-standing comapny in the area and now the home of MJM Yachts www.ostendorf-morris.com global commercial real estate services Vermilion. Below, a view of the company’s largest powerboat — the MJM 50z. Yacht business sets sail ARE YOU WORKING WITH A Vermilion will be home LOAN PROCESSOR OR A DEAL MAKER? base for company that Call the lender that can get your deal closed. is making a big move on the Great Lakes

By RACHEL ABBEY McCAFFERTY Jonathan Mokri [email protected] 440.526.8700 A new dealership in Vermilion is [email protected] looking to bring faster, more fuel-efficient boats to the Great Lakes. Lee Howley, a long-time boater, has been involved in business in Cleveland for decades. He built AGGRESSIVE telecommunication companies, including North Coast Cable of Cleve- BUSINESS FINANCING land. He also founded real estate brokerage Howley & Co. and Howley UP TO $10 MILLION Bread Group Ltd., which operates Panera Bakery-Cafes on the East Coast. Toll Free: 888.697.9555 | www.cbscuso.com Now, he’s helping to bring MJM MJM YACHTS Providing Commercial Loan Financing in Partnership with Area Credit Unions SMSM Yachts Vermilion, a dealership for Newport, R.I.-based MJM Yachts working at Boston BoatWorks LLC, for boats what Tesla is doing for LLC, to the city. Howley said the Ver- which builds the MJM boats, made cars: “pushing the envelope.” The milion operation will be MJM for an “ideal combination.” company is making yachts of its size Yachts’ only dealership on the Great The family behind the long- more accessible with features like a Lakes. Howley, who’s a principal for standing Moes Marine Service is joystick to dock with, and stabilizing MJM Yachts Vermilion, said he likes well-respected, said Vermilion may- technology, he said. ADVERTISEMENT challenges and believes in the area. or Eileen Bulan. “I think it’s in a class of its own,” Vermilion, which features both The announcement of a new Moes said. lake and riverfront property, is a company is “great news for Vermil- MJM’s new and pre-owned boats, great port for small boats, Howley ion,” Bulan said. which range from 29 to 50 feet, cost “Brian Tucker: said. It’s protected and not overrun While the city has companies that anywhere from $200,000 to $1.75 with industry. sell boats, the mayor couldn’t recall million, Moes said. He said they are Howley said in an email that he is the addition of a new one in the past hoping to bring five to 10 new and CLE Matters” a 50/50 partner in MJM Yachts Ver- 10 years. used MJM boats into the Great milion with Mike Moes, president of MJM Yachts Vermilion’s boat will Lakes per year. is a weekly blog sponsored by Moes Marine Service Inc., which has arrive in spring 2015, Moes said. But Gene Gooding, who was the been serving as a marina and boat the boat won’t be arriving on the manager of the Vermilion Yacht repair shop in Vermilion since 1938. back of a truck. Instead, it will leave Club this year, said he was glad to Howley provided the capital for MJM Boston, where MJM’s boats are see someone bringing boat retail Yachts Vermilion to buy a 50z mod- built, and take waterways like the back to the city. The 50-footer’s fuel el boat — MJM’s newest powerboat Hudson River on its way to Vermil- efficiency is ahead of the curve, said and its largest at 50 feet. ion. Howley said in the email that Gooding, who had worked in The dealership is based at Moes the boat will spend its time in har- wholesale boat sales for more than Marine. Moes, who is president of bors around the Great Lakes during 40 years. He doesn’t see boat sales Brian’s blog is delivered weekly in MJM Yachts Vermilion, is in the the summer. for the typical buyer coming back process of revamping one of Moes “We’re going to have a lot of fun,” until the economic climate im- Crain’s FREE Afternoon Report e-newsletter. Marine’s buildings to serve as a sales Howley said of the dealership. proves, but this is a high-end prod- office for the new dealership. Moes Howley has a 40z from MJM of uct with appeal in the market. Marine also is an authorized service his own — it’s fuel-efficient, strong Overall, Gooding said he’s glad to Register to get this blog delivered right to your inbox at center for MJM Yachts Vermilion. and fun to drive, he said. (He’ll be see anything that draws attention to Bob Johnstone, founder and CEO selling it to focus on driving and Vermilion. The city had been a hub CrainsCleveland.com/Email. of MJM Yachts LLC, said the long- promoting the dealership’s new for boat building in its early days. standing community ties of Moes 50z.) “There’s a lot of history here,” he Marine, plus Moes’ experience Moes said he thinks MJM is doing said. 20141110-NEWS--7-NAT-CCI-CL_-- 11/7/2014 2:58 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 VOTERS FitzGerald has ideas continued from page 1 They get it “Usually on a tax issue, money won voter approval. Burges said a key to a winning “That’s about what it’s been for you hope to start at 60% campaign, for a renewal or an infor casino tax revenue the last year, and that’s up a bit and hold on for dear life.” crease, is that “you’ve got to make since 2010,” said William Burges, of the case that a good school (or com- Euclid’s Burges & Burges, a cam- – Alan Melamed By JAY MILLER PlayhouseSquare streetscape. munity) is good for most people in paign consulting firm that ran tax owner, Melamed Communications [email protected] “Over the last four years, the Casi- the community, in terms of quality issue campaigns across the state. no Revenue Fund has played a criti- of life and people’s personal econo- cal role in reinvigorating Downtown “Things appear to be getting bet- takes a little more work educating Cuyahoga County Executive Ed my. I think people can get that.” Cleveland and strengthening all of ter.” voters when you’re asking for more FitzGerald wants to commit $8.8 Several countywide human ser- million from the county’s share of Cuyahoga County,” FitzGerald said School issues in particular might money. vices issues that sought increases casino tax revenue to loans for three in a written statement to Crain’s. have fared better if turnout had “If voters know what the levy is were able to hurdle that higher bar. downtown Cleveland projects that “The three projects we’re announc- been higher, he said. Burges said about and you can convince voters of the value, you can still get them There, five issues that pay for chil- he believes would improve residen- ing will allow us to build on our suc- that when turnout is as low as it was cess and continue attracting new passed,” he said, referring to work dren’s, seniors and mental services tial options. this year the median age of voters is On Monday, Nov. 10, he will rec- businesses and expanding our local his firm did on successful levy in- all passed. higher and includes fewer voters ommend to Cuyahoga County economy for years to come.” creases in Shaker Heights in May A tax increase for Cuyahoga Com- with school-age children. Council that the county make three By law, the county is restricted in and Sandusky last week. munity College also passed, 57% to Shifting the message 43%, as did a Lorain County commitments: a $4 million loan to its use of tax money for economic “In Shaker we did tele-town halls development loans, said Nathan Metroparks levy that included a re- Landmark-May LLC to convert the Increases had a particularly steep and we brought together coalitions May Co. building on Public Square Kelly, deputy chief of staff to newal and an increase. However, hill to climb this Election Day, since of people together to talk about to 350 apartments; a $3.3 million FitzGerald. two countywide tax increases for law the state Legislature last year ended what residents would get for the in- loan to Stark Enterprises for the first Fifty-one percent of the tax rev- two programs, the result of which crease,” Melamed said. enforcement services — a drug lab in phase of its nuCLEus project near enue generated by the state’s four will be an increase in property taxes That effort, he said, raised voter Lorain County and jail and police ra- Quicken Loans Arena; and a $1.5 casinos is divided up among the 88 for many homeowners. approval, according to polling, from dio upgrades in Summit County — million loan to the Historic Gateway counties, with shares based on each As part of Gov. John Kasich’s 46% at the start of the campaign to failed, each by margins of more than Neighborhood Corp. and the county’s population. While that rev- budget balancing strategy of ending 61.3% on Election Day. 12 percentage points. Downtown Cleveland Alliance to be enue has not lived up to early esti- state subsidies to local govern- “Usually on a tax issue, you hope The Summit tax issue would have put toward a $7 million makeover of mates, Cuyahoga County is getting ments, two changes were made. to start at 60% and hold on for dear raised the county’s portion of the the Gateway district. quarterly distributions of slightly The first was what’s been called a life,” Melamed said. sales tax from 0.5% to 0.75%. Even The county last year announced less than $2 million. Counties have tax rollback that had the state pay- As for tax renewals, the “it’s not a with the increase, the Summit Coun- it would use $7 million on three discretion in how they use the mon- ing 12.5% of a taxpayer’s property new tax” mantra is important. It ty sales tax would have been among similar projects — the Flats East ey, and FitzGerald and county tax. The state will continue its sub- worked, Melamed said, when the the lowest in Ohio at 6.75%. Cuya- Bank apartment complex; the Resi- council have agreed to use a large sidy on existing tax levies or their re- county sought to raise the sin tax hoga County tacks 2.25% on to the dences at 1717 in the former East portion of the revenue on econom- newal but will not extend it to new that pays for Cleveland’s sports state’s 5.75% state sales tax. Ohio Gas Co. Building; and the ic development. or added taxes. palaces. The Legislature also put an in- “If you look at the sin tax, the come limit on homestead exemp- conventional wisdom said that tion. campaign wasn’t going that well No longer will the state pay the until they shifted the messaging to, property tax on the first $25,000 of ‘It’s not a tax increase,’” Melamed Open for the value of the home of new senior said. or disabled citizens. No existing ex- That tagline was used successful- emptions are affected. ly this fall in Cleveland by the cam- Alan Melamed, whose Beach- paign to win approval by 63% of Business wood-based Melamed Communi- voters for a $200 million bond issue cations managed three successful for new school buildings that will be municipal tax increases this year in paid for at the same rate as an expir- May and November, said it just ing school construction levy. with Choices that Work. 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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014 Food becomes art at MOCA LIGHTING continued from page 5 tensive industry that tends to be a By KATHY AMES CARR said that he doesn’t know of one In- better fit for mom-and-pop busi- [email protected] tellitube that’s burned out. nesses, said Tu, who splits his time “Nobody wants to lose their job between Ohio and New York. The Museum of Contemporary because they changed the lighting,” Tu said big changes were neces- Art is featuring a chef’s work in its he said. sary, given how much money Ener- latest exhibit — a move that execu- Today, about 80% of the compa- gy Focus had lost. tive director Jill Snyder characterizes ny’s sales come from the military, “Investors didn’t trust the com- as a departure from the institution’s but that figure should go down as pany anymore,” he said. typical offering. Energy Focus starts going harder af- The company’s stock hovered “Ferran Adrià: Notes on Creativi- ter other markets. mostly between $6 and $8 per share ty” displays the drawings of the To do so, it shouldn’t need an during 2007, but it fell off a cliff in eponymous Spanish-born chef, who enormous sales team. It plans to sell 2008. It closed at 54 cents per share is widely held as one of the world’s most of its products through distrib- on July 14 of this year — two days most influential culinary luminaries. utors and energy services companies, before the company conducted a 1- The museum exhibit will be featured which help government agencies and for-10 reverse stock split. Every in- through Jan. 18, 2015. other organizations upgrade their vestor got 1 share for every 10 they “Featuring the work of a chef is an equipment to cut energy costs. previously owned, which immedi- unconventional move for the muse- ately pushed the price up to about $5. Shares were trading around um,” Snyder said. “The unconven- Rebuilding trust tionality is part of the appeal.” $6.25 last Wednesday, Nov. 5. Adrià uses art as a vehicle to un- Energy Focus needed to be com- The reverse stock split helped En- derstand creativity and to inspire in- pletely restructured, according to ergy Focus get back on the NASDAQ novation in the kitchen. Tu. The company had good tech- stock exchange. The company He is credited with bringing mol- nology and a solid relationship with raised another $5 million from in- ecular gastronomy to the forefront of the Navy, but it was unfocused vestors in August. modernist cuisine through a decon- when he took over for CEO Joseph The company projects that sales structivist approach that exposes Kaveski in May 2013. Tu is the will grow by 50% each year over the each ingredient’s texture, form, CONTRIBUTED PHOTO founder and former CEO of 5 Ele- next few years. The company pro- and/or temperature — forming the Ferran Adrià ments Global Advisors, an invest- duced $11.6 million in sales during basis of his “nothing is what it ment advisory and management the first half of 2014, which would- seems” philosophy. Adrià will visit Cleveland on Nov. “An important aspect of MOCA’s firm in New York. n’t include the new Navy contracts. He has filled hundreds of note- 16 and 17 to connect with local mission is to bring world-class cre- So he pushed the company to sell To get there, however, Energy Fo- books with drawings, ideas, collaged movers and shakers, including ative leaders to Cleveland,” Snyder off its original line of business, which cus can’t just rely on the Navy. photographs and loose sketches that award-winning author Michael said. made lighting products for pools and Commercial sales will have to grow, conceived his dishes at the shuttered Ruhlman and business leaders. He “Ferran Adrià’s work pulls in spas, in late 2013 for about $5 mil- Tu said. elBulli in Spain, which has earned will be the keynote at a sold-out Cleveland’s vibrant food scene, and lion. And the company also recently But he thinks the company can numerous times the designation as business innovation breakfast, affords growth opportunities for closed its Nashville office, which it get there. the world’s best restaurant by which is followed by a symposium fields as various as design, technol- acquired when it bought its own en- “One thing we’re very careful of Restaurant magazine and will re- on the history, science and technology and business.” ergy services company. Though En- is to make sure we don’t over open in 2015 as the elBullifounda- ogy of food.Tickets are still available For more information, visit ergy Focus works with so-called promise and under deliver,” he tion. for the symposium. www.MOCAcleveland.org. “ESCO” companies, it’s a labor-in- said. 20141110-NEWS--9-NAT-CCI-CL_-- 11/6/2014 2:13 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

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

M.C. REAL ESTATE: Anita Weaver, JOB CHANGES Linda Remington and Michele Filous to realtors; Paul Emerson ENGINEERING to realtor and auctioneer. PARSONS BRINCKERHOFF: Nick Hendrix to construction SERVICE engineer. FLEET RESPONSE: Allison Hendrix Quercioli Payne Ali Turosky McCarron Lanzilotta to executive vice FINANCIAL SERVICE president. D’AMORE TATMANGROUP LLC: FOUNDATION MANAGEMENT Nicholas R. Maderitz and Anthony SERVICES: Karen C. Zingale to staff accountants. Thompson-Sheehan to GRANT THORNTON LLP: associate/program officer. Karolyn Ladas to director, audit; SAFEGUARD PROPERTIES: Steve Srmag to director, tax. Amitha Rao to assistant vice president, client systems and data HEALTH CARE analytics; Rick Moran to assistant UNIVERSITY HOSPITALS GEAUGA vice president, application Baddeley Stewart Williams Shean Hout Lanzilotta MEDICAL CENTER: Jacquelyn architecture. Quercioli to medical director, Wound Healing and Limb STAFFING Preservation Program. LEGAL Robert M. Williams II to vice NONPROFIT president, strategic business DIRECT RECRUITERS INC.: BUCKLEY KING: Jeffrey CLEVELAND BALLET: Michael development. Kasey Fahey to payer practice INSURANCE Baddeley to partner. Krasnyansky to chairman. director, Health Plan/Payer Practice. MEDICAL MUTUAL OF OHIO: MARKETING KOINONIA HOMES INC.: Wendy Payne to director of risk MANUFACTURING Marty Bondy to chief business adjustment programs; Denise Ali EVOLVE CREATIVE GROUP: OLYMPIC STEEL INC.: Ty development officer. to manager of diversity and inclusion Malinda Shean to online marketing AWARDS Deinema to general manager and programs; Meredith Turosky to director. Aaron Nichol to purchasing REAL ESTATE manager of product and process POINT TO POINT: Jessica TOASTMASTERS INTERNATIONAL: manager, Winder Division. implementation; Bill McCarron to Endress and Jason Hoehnen to ALLEGRO REALTY ADVISORS Lisa Newburger (Beacon Financial sales and retention manager, SMITHERS-OASIS CO.: Anne account directors and vice LTD.: Bradd A. Hout to associate, Partners) received the District 10 Mutual Health Services. M. Stewart to general manager; presidents. transaction advisory services. Toastmaster of the Year Award.

CRAIN’S BUSINESS DIVERSITY COUNCIL Earlier this year, Crain’s Cleveland Business formed an 11-member minority advisory board to provide objective, constructive input on minority-based issues for Crain’s. And you thought these The Crain’s Business Diversity Council has met regularly since April. Starting this week, we are profiling members of the council. LUIS CARTAGENA had a long shelf life. Strategic planning business adviser: Minority Business Development Agency Business Center

Luis Cartagena moved from Puerto Rico to Paterson, N.J., when he was 4. “I basically entered kindergarten only knowing Spanish,” he said. “It was trial by fire. There was no bilin- gual class. You better learn.” The 39-year-old Cartagena has done quite a bit of that. He’s one of He views his role on Crain’s Busi- the leaders for the Cleveland chap- ness Diversity Council as an oppor- ter of the Minority Business Devel- tunity, not yet another activity to di- opment Agency, a program of the vide his dwindling free time. Commission on Economic Inclu- “As a member, our job is to make sion and an arm of the Greater sure we’re making Crain’s staff aware Cleveland Partnership. And when of things going on in the minority he’s not spending time with his community and let them decide wife, Jessica, and three children, in- which stories to follow up on,” he said. cluding a son, Emilio, who was born “Sometimes it’s just an issue of not in September, he might be studying knowing what’s going on. We have an for a CPA license — part of his fu- opportunity to raise awareness.” ture dream of owning a tax practice. Cartagena, who moved to Cleve- Cartagena’s “skill set,” according to land when he was 16, said he remem- his boss, Raland Hatchett, executive bers “Ohio City before it was Ohio director of the Cleveland MBDA, pro- City.” It’s developments in neighbor- vides “great value” to an organization hoods such as Ohio City and Tremont that assists minority-owned firms that make him bullish on his adopted With nearly 4,000 contacts, across the state that have annual rev- hometown, even if he thinks the re- enues of at least $500,000. Hatchett gion can do so much more. also cited Cartagena’s ability to “listen “There are efforts to continue to both sides” in any discussion. growing neighborhoods,” Cartage- “Because of that, he’s open to na said. “There’s a big effort around CRAIN’S BOOK OF LISTS new relationships and he’s open to the West 25th Street Corridor. exploring new cultures,” the Cleve- There’s a big opportunity coming land MDBA executive director said. up through the lower East Side is referenced year-round. Diversity is a source of great pride there with Opportunity Corridor. for Cartagena, who says Northeast It’s good to see developments also Ohio still has “a long way to go to happening in the neighborhoods, some extent. instead of just downtown.” “Let’s take the example of senior He believes companies are “trying management,” he said. “When you’re to do a better job” with diversity. But Don’t miss out on this one time investment that will last you an entire year. trying to find diversity in senior man- he thinks they often need an added agement, it becomes difficult, espe- push. “It has to come from the top,” BOOK YOUR AD TODAY. cially among the Latino community. Cartagena said. “The decisions have We were trying to find Latinos in a se- to come from the C-level suites and nior management role two levels be- chief executive officers from these Contact Nicole Mastrangelo at 216-771-5158 or [email protected]. low the CEO. That was very difficult.” businesses.” — Kevin Kleps 20141110-NEWS--10-NAT-CCI-CL_-- 11/6/2014 4:06 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Feeling blue Rivalries matter. Just ask Ohio State football coach Urban Meyer. He’s been motivating his players to train harder and play smarter all season so they are at peak performance come Nov. 29, when the Buck- eyes take on That Team Up North in one of the college football’s most storied showdowns. But what happens to rivalries when things get too one-sided? The Buckeyes will enter “the game” with nine wins in the last 10 years. That kind of dominance diminishes the rivalry, lowers the passion and makes it difficult to motivate the players to excellence. FROM THE PUBLISHER It’s not much different in political rivalries. And right now, Ohio Democratic Party Chairman Chris Redfern is looking a lot like a clueless coach on the sidelines. He did nothing to adequately prepare — Crowdfunding and the future and in some cases vet — statewide Democratic can- didates for the blood bath that was Election Day last You probably remember Zack “Dan- (and there are lots of them), plenty of Over the summer, the Hard Rock Ho- week. It’s not that the Democrats didn’t win. They ger” Brown, and you probably still want people have their hands out online. Lit- tel in Palm Springs raised $1.5 million to punch him. erally thousands of people are, from 85 investors in what was believed to didn’t even show up, losing every statewide office by Brown is from Columbus, right now, asking the world to be a first-of-its-kind crowdfunding ef- double digits. And that matters. Unlike OSU-Michi- and on July 3, he posted a fund their vacations, wed- fort. gan football, this is not a game. modest crowdfunding request dings and rhinoplasty. The backers each received a minority In the aftermath, what’s clear is that Republicans on Kickstarter.com — $10 — A recent request on GoGet- equity stake in a major hotel for an aver- in Ohio need a challenge, the voters need a choice to pay for a batch of potato sal- Funding.com from a couple in age investment of less than $18,000. and the Democrats need a mirror — because party ad. Rochester, N.Y., asked for If Congress allows non-accredited in- leaders need to see they have only themselves to “Basically I’m just making money for a new septic system vestors to join in the fun (it’s in the blame for the embarrassing effort the party put forth potato salad,” he wrote in his (more than 60 people pledged works), anyone with an extra $1,000 or on Nov. 4. Democrats were swept for the fifth time in ask. “It might not be that good. $3,751 to the cause). even $100 could invest in a promising the past six elections for statewide offices. Perhaps a It’s my first potato salad.” The temptation might be to startup and potentially see the sort of ex- JOHN laugh off crowdfunding as a ponential returns that used to be re- wolverine should replace the donkey in Ohio. By the end of September, af- CAMPANELLI fad or a tactic reserved for served for entrepreneurs, early employ- The question Democrats need to ask themselves in ter his request somehow went viral, his project had received budding rock stars, documen- ees, venture capitalists and card the wake of this midterm election is pretty simple: an astonishing $55,492 in funding — tary filmmakers or school marching counters. What do we need to do to be competitive in enough to supply potato salad for every bands raising cash for a trip to Cedar And on the other side, startups would statewide races? church picnic from now until the Rap- Point. get to drink from an ocean of new capi- Fortunately, the Dems are being spared the first ture. Nearly 7,000 people in more than In truth, crowdfunding is the future, tal. step in moving forward. In a rare moment of self-re- 70 countries donated to his effort. the complete democratization of invest- The potential for our economy? Hard- flection, Redfern announced his resignation as the Because of absurd stories like these ing. ly small potatoes. state party boss. It’s not the only job Redfern will be leaving at the end of the year: He also lost his seat in the statehouse. He could not go quietly, though — blaming everyone but himself for the party’s pitiful TALK ON THE WEB performance — and taking credit for building “the ve cars an average of 1.2 miles further. strongest state party in the country.” He was serious. Re: Who to Watch in Re: Proposed hotel project Education profilees for Akron’s Greystone Hall Having examined her research care- The second step for the Democrats is to strengthen fully, I would go to the bank that Jevons their lineup. When the only legitimate candidate Robert Aguilar of Western Reserve This is an outstanding idea. I’ve Paradox holds for automobiles in the your party can put forth for governor is a long-shot Academy is a great teacher and an even known about this project for quite some U.S. today. Nobody to my knowledge from the moment he announces his candidacy, you better guy. Smart move by Crain’s to fea- time and am anxious to see this project has, however, thoroughly investigated ture him, and a well-deserved honor. come to life. The architectural render- must realize your bench is thin. whether or not (or to what extent) the — Tom_RedRight88 ings look rather promising. I look for- paradox holds for electric utilities. Thus, It’s not healthy to have one-party rule on any level ward to them breaking ground soon on of government. Not at the state level, where Republi- the observation that it might hold is a I am so very proud of my son, Kent this proposed idea. — Jon very good one. — Bill Bowen cans go essentially unchallenged, or at the local level, State University associate athletic direc- where, in Cuyahoga County for example, it’s been 20 tor Randale Richmond, for what he has Re: Why don’t utilities I don’t doubt that Jevons Paradox years and counting since a Republican won county- accomplished and what he’s about to ac- embrace efficiency steps? holds for electricity as well as for auto- complish. He was taught not to give up, wide office. Jack Schron, a Republican, was well-suit- Dr. Vinola Vincent-Munion, a recent mobiles, even if FirstEnergy Corp. does and at least to try … and that you could ed to become county executive. He lost to Democrat graduate from the Levin College of Ur- not believe it. But more importantly, the do all things through Christ, who Armond Budish, 59% to 41%. ban Affairs, wrote a doctoral dissertation issue is not about saving power or fuel. It strengthens you. I’m a very proud mom. Sometimes, even with a strong lineup and a solid titled “Vehicle Fuel Economy and Vehi- is about eliminating waste and growing — Oretha game plan, victory eludes, especially when compet- cle Miles Traveled: An Investigation of the economy. ing on the opponent’s turf, as any Republican must Re: New partner-in-charge Jevons Paradox.” More electricity use, like more auto- do in Cuyahoga County. But at the statewide level, at Thompson Hine’s (Jevons Paradox is the idea that as mobile driving, is not necessarily a bad where the political arena is ringed with equal num- Cleveland office technology progresses, improvements in thing — not if it means an improvement bers of voters wearing red and blue, there’s no ex- efficiency with which a resource is used in the quality of our lives. Hurrah for Robyn Minter Smyers, a tend to increase, rather than decrease, cuse for a shutout. And this is what Jevons Paradox really proven leader in the legal and civic com- the rate of consumption of the resource.) The Democrats had as their quarterback a guberna- tells us: Each time we implement energy munity. — Sharon Milligan She concluded, on the basis of records efficiency, we see an improvement in our torial candidate who fumbled early. Their head coach of nearly 100,000 vehicles from the Na- economy and our quality of life. That is failed to have his team ready. For Ohio’s sake, let’s Robyn, you are an inspiration to all tional Household Travel Survey, that as why consumption increases with effi- hope the party’s next leader brings a new playbook. women in the Cleveland area. vehicle gas mileage increases by one ciency. — Joyce Walker mile per gallon, all else equal, people dri- — Andrew Thomas 20141110-NEWS--11-NAT-CCI-CL_-- 11/6/2014 1:59 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW THE DELAWARE BUILDING Prime Office Space Available Getting Ohio up to speed 137 S. Main St., Akron, OH

By JACK KLEINHENZ investment.” Our study argues that Kleinhenz is CEO of Kleinhenz Ohio’s progress can be encouraged & Associates in Cleveland and What will Ohio’s future look like? by policies that ensure marketplace We don’t need a crystal ball to an- an adjunct professor of fairness and prioritize the goals of swer this question. economics at Case Western the new economy. Current facts and trends offer in- Reserve University. For example, currently in Ohio, dications about what can be ex- both consumer demand for high- pected when it comes to the econ- even increasing this rate of invest- speed broadband services and pri- omy, jobs and opportunities, and ment is essential for Ohio’s future vate sector investment in such ser- private sector investment. This economic growth, particularly be- vices are large. Our study contends much has become clear: Broad- cause this investment creates or that policymakers can encourage t 6OJRVF4QBDFT"WBJMBCMF t "DDFTTUP4LZXBML band investment is key to Ohio’s supports 15,000 to 30,000 Ohio jobs continued investment (and the re- SBOHJOHGSPN4'UP 4' $BTDBEF1BSLJOH economy, both now and in the fu- sulting economic benefits) by re- per year. t 0VUTUBOEJOH$#%-PDBUJPO t 0OTJUF1SPQFSUZ.BOBHFNFOU ture. Indeed, investment in broad- moving obsolete regulations and by Further investment and deploy- band infrastructure impacts more continuing to focus on policies that t -PDBUFEPOMZPOFCMPDLGSPNUIF t 3FOPWBUFE$PNNPO"SFBT ment will make the economy more than jobs. According to TechNet’s prioritize innovation and broad- 4VNNJU$PVOUZ$PVSUIPVTF 5IF 3FTUSPPNT flexible, adaptable and more attrac- 2012 State Broadband Index, band capacity. Such broadband ca- 0IJP#MEH (PWFSONFOU0óDFT tive for business investment and ex- “states actively investing in and uti- pacity impinges on other factors of pansion. After all, access to high- lizing broadband networks are see- growth. Ronald Midcap II speed Internet is increasingly ing stronger economic growth, bet- The investment Ohio businesses essential to the people and busi- ter connected communities, and are making in human capital, re- 330.671.7767 nesses in our state. enhanced quality of life.” search and development and tech- HannaChartwell.com According to the Ohio Telecom Widespread access to cutting- nology entrepreneurship is depen- Association, 71% of Ohio house- edge network infrastructure offers dent on having the latest holds subscribe to high-speed In- benefits and possibilities for us all: information and communications ternet service. And increasingly, access to higher education and ed- infrastructure. Ohio residents are using wireless ucational enrichment for students Because our economic outlook is phones, including smartphones, of all ages, opportunities for directly related to broadband infra- and changing out landlines in favor telecommuting jobs and online job structure, our tech leaders and pol- of advanced communications tech- training, increased access to conve- icymakers can work to place Ohio nologies that meet today’s needs. nient health care via telemedicine in a better position — one that al- Ohioans know that they can initiatives, and better options for lows us all to reap the benefits of HELP US achieve more, do more, learn more engaging our communities and the digital age. This is excellent and enjoy more with these ad- keeping in touch with one another. news, and it indicates we can pave vanced devices and lightning-fast Unfortunately, the TechNet State the way for future success by mak- RESTOCK networks. Broadband Index ranked Ohio 39th ing the right moves today. And in turn, this growing con- when it comes to three key mea- I’d like to rephrase my earlier THE PANTRY sumer demand is a market signal sures: broadband adoption, net- question. Perhaps the better ques- at St. Augustine Hunger Center for more private sector investment work quality and economic struction to ask is “What could Ohio’s fu- into broadband. ture. ture look like?” The answer really To that end, Technology for That puts the Buckeye State be- depends on the willingness of our TOP 10 NEEDED FOOD ITEMS Ohio’s Tomorrow commissioned low the national average, which policymakers to incent and encour- my firm, Kleinhenz & Associates, to means our state is not currently po- age key investments. Canned Soup Canned Tuna perform an in-depth study of this sitioned to take full advantage of By working with telecommunica- Peanut Butter Macaroni & Cheese topic. Titled “Gauging the Value of the digital economy. tions industry leaders and other Help us restockJelly theCanned pantry!Fruits Broadband Investment and its Ben- There is certainly room for im- stakeholders, Ohio’s policymakers efits,” our study revealed that provement, and indeed, the eco- can encourage private sector in- Canned Vegetables Hot and Cold Cereals Ohio’s telecom companies are in- nomic outlook of Ohio is far from vestment into this essential infra- Pasta Rice vesting heavily into the state’s net- bleak. TechNet researchers stated structure, encouraging innovation work infrastructure, at a rate of $1 that there is potential because of while expanding access and meet- billion per year. Maintaining and Ohio’s “stakeholder leadership and ing consumer demand.

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

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014 FAST 50 continued from page 1 most significant growth shared Williams Realty Greater Cleveland, common approaches to customer which placed 31st with 83% service and investment in person- growth, said finding the right nel — strategies each said are talent also was a key component of imperative for achieving viability in their overall success. the wake of the economic “It’s not only identifying top tal- downturn. ent from yesterday, but also people Ridley Watts, president of Panel who are willing to grow with the Master, a LaGrange company that market going forward,” he said, specializes in electrical and pneu- noting their number of practition- matic control engineering, said ers has doubled in two years. “If customer care drove their success. we identify people who have a His company, which placed 15th hunger to grow their own individ- with 165% growth, has been fo- ual businesses and utilize our own cused on faster delivery of prod- tools and resources, it’s a winning ucts, which was achieved through combination. And that’s what streamlined operations. we’ve done.” Justin Horton, a wealth adviser “Don’t do what’s convenient. at Stratos Wealth Partners, which And don’t just take the people who took second place with 941% are in arm’s length,” Phillips growth, said its key to growth was added. “Find the most talented investing in new talent as others people in your field and get into downsized. business with them, no matter He noted the firm was launched what it takes.” in February 2009 at the back end of At Alego, a local investment and the recession, but that “volatility” respect of employees has equally worked in their favor. resulted in success as much as a “In our industry, there were lots “granular” level of customer BARON PHOTOGRAPHY of layoffs at wire houses or big understanding, Levoy said. Clockwise from top left, representatives from nine of the 10 fastest-growing companies of 2014: Bernie Moreno shakeups at banks, so we provided Forestall said Alego prides itself of The Collection Auto Group, Neil Gloger of InterGroup International, Erin McGinty of Alliance Solutions Group, Ken an independent alternative for ad- on local investment and applies Applebaum of COTSWORKS, Jonathan Jones of Go2IT Group, Jim Pshock of Bravo Wellness, Danny Spitz of EVERSTAFF, visers to join our firm,” he said, the same strategy for work across Jim Lupica of Stratos Wealth Partners and Jon Levoy of Alego Health. noting that new advisers were the country, not just in Cleveland. incentivized by being able to run “We do our own training and their own practice as well as own a can provide those local resources, piece of Stratos. “And I think that so we’re able to reduce the was the catalyst to really jumpstart expense to our clients,” Forestall us.” said, noting she’s “proud” of “We wanted to create a firm investing in local talent pools. where advisers are in complete But passion, Levoy added, is control of their destiny,” he added. critical to any business flourishing. “But the No. 2 reason (for success) “You have to be passionate is the culture of the firm, and that’s about what you do,” he said. trickled down from our “Put yourself in it, because it’s leadership.” not just a job, it’s a part of who you Scott Phillips Jr., CEO of Keller are.”

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NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13

LEFT: Crain’s Fast 50 event was held at the Western Reserve Historical Society’s Crawford Auto Aviation Museum.

BOTTOM LEFT: Alego Health was deemed the fastest-growing company in Northeast Ohio. From left to right: Mike Zavadil of Alego Health, emcee Kabir Bhatia of WKSU, Jacqueline Forestall of Alego Health, Jon Levoy of Alego Health and Sean Richardson of presenting sponsor FirstMerit.

BOTTOM RIGHT: Jessica Morris, Tiffany Leckrone, Laura Knaak, Karla Ferguson and Melissa Nye, all with Integrity Staffing Services.

PHOTOS BY BARON PHOTOGRAPHY

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We are privileged to be among such an esteemed group of local companies that share our passion and entrepreneurial spirit.

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NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15

These businesses have exhibited entrepreneurial spirit, innovative business tactics and, most importantly, increasing revenue.

Presenting -- in order, based on their five-year growth rates -- the Crain’s Cleveland Business ...

THE PROCESS: To be eligible, Fast 50 companies could be either publicly traded or privately held, and they had to be at least five years old, have at least $5 million in 2013 revenues and be located in Northeast Ohio. Crain’s Cleveland Business worked with Apple Growth Partners, an independent accounting and business advisory firm with offices in Akron and Cleveland, to verify revenue numbers and to compute the revenue growth from 2009 to 2013. Apple Growth Partners collected additional financial information (tax returns or reviewed and compiled financial statements) for the purpose of verification and compu- tation of revenue and revenue growth. Percentage growth is based on revenue from 2009 to 2013. 20141110-NEWS--16-NAT-CCI-CL_-- 11/6/2014 1:17 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

1 Alego Health 2 Stratos Wealth Partners 3 Bravo Wellness Revenue 2013: $41.6 million Revenue 2013: $20.3 million Alego Health nearly closed its REVENUE 2013: $8.7 million Percentage change: 941% Percentage change: 652% PERCENTAGE CHANGE 2009-2013: 1,072% doors in 2009 when the need for temporary nurses dried up as many 3750 Park East Drive, Suite 200 20445 Emerald Parkway Drive SW, Suite 400 Beachwood 44122 Cleveland 44135, 877-662-7286 24651 Center Ridge Road, Suite 400 part-time nurses returned to the Westlake 44145 440-519-2500 www.bravowell.com 440-617-6516 work force full time to make extra www.stratoswealthpartners.com Corporate email: [email protected] www.alegohealth.com money during the Great Recession. Corporate email: [email protected] Twitter: @BravoWell Twitter: @Stratos_Wealth CORPORATE EMAIL: [email protected] However, determined to keep the business afloat, Alego’s leaders re- Year founded: 2008 Year founded: 2008 Number of FTE local employees YEAR FOUNDED: 2004 vamped the company from a sleepy NUMBER OF FTE LOCAL EMPLOYEES Number of FTE local employees as of Sept. 30, 2014: 147 staffing firm into one that helps hos- AS OF SEPT. 30, 2014: 72 as of Sept. 30, 2014: 136 Number of FTE employees pitals and other providers navigate Number of FTE employees worldwide as of Sept. 30, 2014: 152 NUMBER OF FTE EMPLOYEES the rapidly evolving world of health worldwide as of Sept. 30, 2014: 384 Top local executive: Jim Pshock, president, CEO WORLDWIDE AS OF SEPT. 30, 2014: 107 care information technology. Top local executive: Jeffrey Concepcion, TOP LOCAL EXECUTIVE: founder, CEO; Nancy Andrefsky, CFO; Business description: Bravo Wellness’ efforts Today, the firm, which generated Jacqueline Forestall, president Dan Jacoby, chief investment officer are focused in the wellness industry, specifically $8.7 million in revenue last year, in the wellness incentive space. It carefully de- BUSINESS DESCRIPTION: Alego Health is a specializes in providing clinical and Business description: Stratos Wealth signs compliant incentives, for which case stud- solutions provider of health care IT services and technical resources for hospitals, Partners is an independent, partner-owned ies prove and demonstrate sustained health im- consulting. Alego specializes in providing clinical and -operated financial services firm. provement and reduced claims spending. and technical resources to fulfill the health care physician offices and extended-care IT needs of hospitals, physician offices and facilities to meet their health care IT extended care facilities. needs. Alego’s business model re- volves around placing people with clinical backgrounds — RNs, LPNs and medical assistants, for instance — into IT set- 4 COTSWORKS LLC tings to assist with electronic medical record launches. It seems as if Alego’s formu- la has worked. From 2009 to 2013, for one, the company’s revenue ballooned by Revenue 2013: $6.7 million Business description: COTSWORKS manufac- 1,072% — putting it at the top of the list of the Crain’s Cleveland Business Fast 50. Percentage change: 506% tures rugged fiber optic components, including The company is led by Jacqueline Forestall, who held several high-profile human transceivers, cables and integration services resources gigs at local hospitals before launching Alego in 2004. Alego’s clients have 749 Miner Road for companies in the commercial aerospace, included some of the region’s largest health care providers, such as the Cleveland Highland Heights 44143 military and other industrial markets. Its metal Clinic, University Hospitals, Sisters of Charity Health System and Southwest Gener- 440-446-8800 housings are designed to perform in extreme www.cotsworks.com temperatures and noisy environments, such as al Health Center. aircraft flight decks, mobile ground radar links Alego employs 72 full-time equivalent employees locally and 107 worldwide. The Year founded: 2006 and underwater sonar systems. company also is a founding partner of the HIMSS Innovation Center, the health care Number of FTE local employees as of Sept. 30, exhibition and education center housed within the Global Center for Health Inno- 2014: 44 vation in downtown Cleveland. — Timothy Magaw Top local executive: Ken Applebaum, CEO

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NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17

5 InterGroup International Ltd. 10 Alliance Solutions Group LLC 11 ON Search Partners LLC

Revenue 2013: $17.4 million Number of FTE employees Revenue 2013: $42.3 million Revenue 2013: $9 million Percentage change: 447% worldwide as of Sept. 30, 2014: 95 Percentage change: 234% Percentage change: 188% Top local executive: Neil Gloger, CEO 1111 E. 200th St., Euclid 44117 4500 Rockside Road, Suite 210 6240 SOM Center Road, Suite 230 216-862-9289 Business description: InterGroup buys, Independence 44131 Solon 44139 www.intergroupinternational.com reprocesses and sells post-industrial 216-503-1690 440-318-1006 scrap plastic, with a special concen- www.alliancesolutionsgrp.com http://onpartners.com/ Year founded: 2006 tration on flexible packaging scrap. Corporate email: rsable@alliancesolutions- Corporate email: [email protected] Number of FTE local employees grp.com as of Sept. 30, 2014: 65 Twitter: @AllianceSolGrp Year founded: 2006

Year founded: 2001 Business description: ON Search Partners is a Number of FTE local employees as of Sept. global retained executive search firm that iden- 30, 2014: 75 tifies and recruits C suite, board and senior ex- Number of FTE employees worldwide as of ecutive talent, particularly in the technology, 6 EVERSTAFF International Sept. 30, 2014: 85 life sciences, industrial, clean tech and finan- Top local executive: Aaron Grossman, CEO cial services sectors. A member of the global search network, Signium International, the firm Revenue 2013: $23.9 million Number of FTE employees Business description: Alliance Solutions Group also has offices in Silicon Valley, Dallas, Min- Percentage change: 379% worldwide as of Sept. 30, 2014: 45 is a family of 10 specialized brands providing neapolis and the Baltimore/D.C. area. Top local executive: Danny Spitz, CEO temporary and contract staffing, direct-hire re- 6500 Rockside Road, Suite 385 cruitment and senior-level consultants. Its Independence 44131 Business description: EVERSTAFF spe- brands represent a variety of industries and 216-369-2566 cializes in the recruitment of profes- fields, such as office and administrative, ac- www.everstaff.com sionals and is a resource for providing counting and financial, health care, legal, sci- Corporate email: [email protected] qualified and skilled individuals to orga- entific, skilled manufacturing, light industrial, Twitter: @EVERSTAFFIntl nizations of all sizes. EVERSTAFF engineering and supply chain operations. strives to optimize efforts and re- Year founded: 2001 sources to exceed clients’ and candi- Number of FTE local employees dates’ expectations. as of Sept. 30, 2014: 28

7 ProSource Solutions LLC

Revenue 2013: $11.2 million Top local executive: Percentage change: 361% Lowell Messner, CEO

4199 Kinross Lakes Parkway, Business description: ProSource aims Suite 150, Richfield 44286 to help companies move quicker, > PERSONALIZED SERVICE 330-800-5111 grow faster, work more efficiently, for you. www.prosourcesolutionsllc.com thrive and prosper by leveraging tech- Corporate email: nology in a wide variety of disciplines [email protected] and applications to improve business > COMMERCIAL BANKING Twitter: @ProSourceLLC processes, collaboration and revenue- generating activities. for your bottom line. Year founded: 2009 Number of FTE local employees as of Sept. 30, 2014: 53

8 Collection Auto Group

Revenue 2013: $477.8 million Top local executive: Percentage change: 344% Bernie Moreno, president

28450 Lorain Road Business description: The Collection North Olmsted 44070 Auto Group was established in 2005 440-716-2700 by Bernie Moreno. Today, it says it is www.thecag.com the largest-volume dealer of luxury Twitter: @TheCollectionAG cars in the central United States comprised of 30 brands, 800 team mem- Year founded: 2005 bers and an ever-expanding territory Number of FTE local employees including Ohio, Kentucky, and soon, as of Sept. 30, 2014: 665 Massachusetts and Florida. Number of FTE employees worldwide as of Sept. 30, 2014: 800

We believe that banking is about more than expert ﬁnancial guidance and proven banking products. It’s also about collaboration, individualized service, 9 Go2IT Group and fostering economic growth in our community. We’re committed to it. And nearly 80 years of Revenue 2013: $9.2 million Number of FTE local employees community banking expertise supports it. Percentage change: 260% as of Sept. 30, 2014: 17 Number of FTE employees 26260 Center Ridge Road worldwide as of Sept. 30, 2014: 65 Westlake 44145 Top local executive: LET OUR TEAM HELP YOURS THRIVE. 440-471-8210 Beverly Sandvick, president Contact Kurt Raicevich at (216) 239-5908. www.go2itgroup.com Corporate email: Business description: The Go2IT [email protected] Group is a provider of cutting-edge Twitter: @Go2ITGroup technology and technical staffing solutions. Year founded: 1995 20141110-NEWS--18-NAT-CCI-CL_-- 11/5/2014 3:43 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

12 MFS Supply LLC 14 Magnus International Group

Revenue 2013: $37.3 million Revenue 2013: $46.9 million Top local executive: Eric Lofquist, Percentage change: 184% Percentage change: 168% president, CEO, owner; Scott Forster, vice president, COO, owner 31100 Solon Road, Solon 44139 16533 Chillicothe Road 800-607-0541, www.mfssupply.com Chagrin Falls 44023 Business description: Magnus manu- Corporate email: [email protected] 216-592-8355 factures and distributes natural animal Twitter: @mfssupply www.magnusig.com feed ingredients and oleochemicals, Corporate email: sforster@mag- including natural waxes and glycerin. It Year founded: 2006 nusig.com makes these renewable products by Number of full-time equivalent local employees as of Sept 30, 2014: 55 rescuing and converting reusable food Number of full-time equivalent worldwide employees as of Sept 30, 2014: 65 Year founded: 2007 industry raw materials such as veg- Top local executive: Mike Hajec Number of FTE local employees etable oils, cooking greases and ani- as of Sept. 30, 2014: 56 mal fats that may otherwise be landfill- Business description: MFS Supply is a source for security and property management products. Founded in 2006 by pro- bound. fessionals with more than 20 years of experience in the mortgage field servicing industry, the company says it understands the needs of real estate agents, REO and preservation contractors, and commercial and private property managers.

13 PIRHL 15 Panel Master LLC Revenue 2013: $21.3 million Revenue 2013: $6.2 million Year founded: 1985 Percentage change: 175% Percentage change: 165% Number of FTE local employees as of Sept. 30, 2014: 39 4949 Galaxy Parkway, Suite S, Warrensville Heights 44128 191 Commerce Drive Top local executive: Ridley Watts, CEO 216-378-9690, www.pirhl.com LaGrange 44050 Corporate email: [email protected] 440-355-4442 Business description: Designers and www.panelmaster.com manufacturers of industrial controls. Year founded: 2004 Corporate email: Top local executive: John Tarnowski, chief operating officer/chief financial officer; David Uram, principal; David Burg, principal [email protected] Business description: PIRHL is a developer, contractor and owner of real estate committed to developing thoughtful, sustainable communities. With a presence in seven states, the company’s process is built on thorough analysis, transparency and strong public-private partnerships.

16 KLN Logistics Corp.

Revenue 2013: $7.3 million Top local executive: Percentage change: 165% Kim Martinez-Giering

6749 Eastland Road, Suite C Business description: KLN is a Middleburg Heights 44130 full-service freight forwarder also 440-816-1505 specializing in cartage, warehousing www.klnlogistics.com and logistics consulting. It serves Corporate email: multiple industries including but not HzW Environmental Consultants, LLC [email protected] limited to manufacturing, medical Twitter: @KLNlogistics equipment, pharmaceuticals, perish- ables, energy, government, home Year founded: 2005 deliveries, electronics and retail. Number of FTE local employees Our staff includes geologists, biologists, chemists, industrial as of Sept 30, 2014: 35 hygienists, environmental specialists, safety specialists and support staff with the technical expertise and experience to address a wide range of environmental needs: 17 Integrity Staffing Services

• environmental compliance • geological services Revenue 2013: $11.7 million Top local executive: Percentage change: 145% Dan Barnett, president, owner • industrial hygiene services • voluntary action program 2132 Case Parkway North, Unit J Business description: Since 1992, Twinsburg 44087 Integrity Staffing Services has worked • wetlands/ecological services 330-963-3700 to help businesses navigate staffing www.integritystaff.com and human resource needs.

Year founded: 1992 Number of FTE local employees as of Sept. 30, 2014: 13 www.hzwenv.com ph 440.357.1260 • fx 440.357.1510 6105 Heisley Road • Mentor, Ohio 44060 18 Katherine’s Collection

Revenue 2013: $11.4 million Top local executive: Gary Giller, CEO Percentage change: 144% Business description: Katherine’s A proud member of 370 Falls Commerce Parkway Collection designs, manufactures Cuyahoga Falls 44224 and sells branded and private label 330-572-2780 seasonal giftware and decorative Crain's 2014 Fast 50 Class! www.katherinescollection.com items for luxury department stores Corporate email: [email protected] and retail gift stores worldwide.

Year founded: 1991 Number of FTE local employees AKRON ∙ CANTON ∙ MENTOR ∙ EUCLID as of Sept. 30, 2014: 28 Number of FTE employees worldwide as of Sept. 30, 2014: 170 20141110-NEWS--19-NAT-CCI-CL_-- 11/5/2014 3:43 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

19 Olympic Steel Inc. 20 Olympic Forest Products Co. 21 BackTrack Inc. 22 Safeguard Properties LLC

Revenue 2013: $1.3 billion Revenue 2013: $83.5 million Revenue 2013: $7.9 million Revenue 2013: $1.3 billion Percentage change: 141% Percentage change: 138% Percentage change: 128% Percentage change: 123%

22901 Millcreek Blvd. 2200 Carnegie Ave. 8850 Tyler Blvd 7887 Safeguard Circle Highland Hills 44122 Cleveland 44115 Mentor 44060 Valley View 44125 216-292-3800 216-421-2775 440-205-2035 216-739-2900 www.olysteel.com www.olyforest.com www.backtracker.com www.safeguardproperties.com Corporate email: [email protected] Corporate email: [email protected] Twitter: @safeguardprop Twitter: @Olympic_Steel Twitter: @askolympic Year founded: 1994 Number of FTE local employees Year founded: 1990 Year founded: 1954 Year founded: 1981 as of Sept. 30, 2014: 81 Number of FTE local employees Number of FTE local employees Number of FTE local employees Top local executive: as of Sept. 30, 2014: 1,565 as of Sept. 30, 2014: 270 as of Sept. 30, 2014: 15 Robert Gandee, president/CEO Number of FTE employees worldwide Number of FTE employees worldwide as of Number of FTE employees as of Sept. 30, 2014: 1,750 Sept. 30, 2014: 1,790 worldwide as of Sept. 30, 2014: 20 Business description: BackTrack Top local executive: Alan Jaffa, CEO Top local executive: Top local executive: provides background screening and Michael D. Siegal, chairman, CEO Daniel John Andrews, president executive search services to companies Business description: Safeguard worldwide. Properties is a mortgage field Business description: Founded in 1954, Business description: Olympic provides services company, providing services in Olympic Steel is a U.S. metals service center pallets and pallet management services. all 50 states, the Virgin Islands, Guam focused on the direct sale and distribution of With local roots and national coverage, it and Puerto Rico. Headquartered in Val- large volumes of processed carbon, coated serves single and multi-plant operations ley View, the company inspects and and stainless flat-rolled sheet, coil and plate in diverse industries. Olympic can deliver maintains defaulted and steel and aluminum products. The company’s tailored programs that are innovative, foreclosed properties for mortgage ser- CTI subsidiary is a distributor of steel tubing, cost-effective and sustainable. vicers, lenders and financial bar, pipe, valves and fittings, and it fabricates institutions. pressure parts for the electric utility industry. Headquartered in Cleveland, Olympic Steel operates from 34 facilities in North America.

23 Fathom

Revenue 2013: $15.4 million Number of FTE employees worldwide Percentage change: 123% as of Sept. 30, 2014: 150 Top local executive: Scot Lowry, 8200 Sweet Valley Drive president, CEO Suite 100, Valley View 44125 216-369-2220 Business description: Fathom is a full- www.fathomdelivers.com service digital marketing and analytics Corporate email: slowry@fathomdeliv- firm that delivers revenue for its ers.com clients across multiple digital touch Twitter: @FathomOnline points. The company works across multiple industries including manufac- Year founded: 1997 turing, technology, education, health Number of FTE local employees care and retail. as of Sept. 30, 2014: 123

24 Hyland, creator of OnBase

Revenue 2013: $274.8 million Top local executive: Bill Priemer, presi- Percentage change: 106% dent and CEO, Hyland, creator of On- Base 28500 Clemens Road Westlake 44145 Business description: For more than 1-888-495-2638 20 years, Hyland, creator of OnBase, www.onbase.com has helped more than 13,000 lifetime Twitter: @OnBase customers by providing real-world solutions to everyday business chal- Year founded: 1991 lenges. Hyland aims to develop the Number of FTE local employees as of most flexible and comprehensive en- Sept. 30, 2014: 1,330 (Westlake) terprise content management solu- Number of FTE employees worldwide tions available. as of Sept. 30, 2014: 1,755

25 ThenDesign Architecture Ltd.

Revenue 2013: $5.9 million Top local executive: Robert A. Fiala, Percentage change: 106% managing partner

4135 Erie St., Willoughby 44094 Business description: With offices in 440-269-2266 Cleveland and Pittsburgh, ThenDesign www.thendesign.com Architecture is celebrating its 25th Corporate email: janderle@thende- year of providing planning, architec- sign.com ture and interior design services. In Twitter: @ThenDesignArch addition to recognition for its educational buildings and sports/recreation Year founded: 1989 facility designs, TDA supports the hos- Number of FTE local employees pitality, senior living and commercial as of Sept. 30, 2014: 31 markets. Number of FTE employees worldwide as of Sept. 30, 2014: 35 20141110-NEWS--20-NAT-CCI-CL_-- 11/5/2014 3:44 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

26 Chart Industries Inc. and subsidiaries 27 WTWH Media LLC (Design World LLC) 28 National Interstate Corp.

Revenue 2013: $1.2 billion Revenue 2013: $6.7 million Revenue 2013: $569 million Percentage change: 97% Percentage change: 90% Percentage change: 87%

One Infinity Corporate Centre Drive, Suite 300 6555 Carnegie Ave., Suite 300 3250 Interstate Drive Garfield Heights 44125-5370 Cleveland 44103 Richfield 44286-9000 440-753-1490 888-543-2447 800-929-1500 www.chartindustries.com www.wtwhmedia.com www.natl.com Corporate email: [email protected] Twitter: @wtwh_media Corporate email: [email protected] Twitter: @ChartInd Twitter: @NATLCareers Year founded: 2006 Year founded: 1986 Number of FTE local employees as of Sept. 30, 2014: 25 Year founded: 1989 Number of FTE local employees Number of FTE employees worldwide Number of FTE local employees as of Sept. 30, 2014: 74 as of Sept. 30, 2014: 39 as of Sept. 30, 2014: 455 Number of FTE employees worldwide as of Sept. 30, 2014: 5,293 Top local executive: Number of FTE employees worldwide Top local executive: Samuel F. Thomas, chairman, president, CEO Scott McCafferty, managing partner, co-founder as of Sept. 30, 2014: 628 Top local executive: Business description: Independent global manufacturer of highly engi- Business description: WTWH Media LLC is a business-to- David W. Michelson, president, CEO neered equipment and systems for the energy, industrial gas and bio- business media company serving the design engineering medical industries. Chart’s equipment is used in the production, stor- and renewable energy markets with more than 40 technol- Business description: Provider of specialty age, distribution and end-use of industrial and hydrocarbon gases, ogy web sites, four print publications, events and social property and casualty insurance with a including natural gas. media services. focus on the transportation industry.

29 GMS 30 PolyOne Corp.

Revenue 2013: $37.3 million Revenue 2013: $3.8 billion Percentage change: 83% Percentage change: 83%

3296 Columbia Road 33587 Walker Road, Avon Lake 44012 Richfield 44286 440-930-1000, www.polyone.com, Twitter: @PolyOne 330-659-0100 www.groupmgmt.com Year founded: 2000 Number of FTE local employees as of Dec. 31, 2013: 760 (approximately) Year founded: 1996 Number of FTE employees worldwide as of Dec. 31, 2013: 7,000 (approximately) Top local executive: Mike Kahoe, president Top local executive: Robert M. Patterson, president, CEO

Business description: GMS is a professional employer organization that works with small- to Business description: PolyOne Corp. is a provider of specialized polymer materials, services and midsize employers managing administrative functions that include payroll, human resources, solutions. The company serves global customers in diverse industries, working to create value risk management and benefits administration. through collaboration, innovation and a commitment to excellence.

Congratulations BackTrack/RSI for winning awards, Crain’s Fast 50, Weatherhead 100 and Lake-Geauga Fast Track 50

As the founders of BackTrack/Recruiter Solutions International, we want to thank Crain's Cleveland Business for the Crain's Fast 50 Award, Weatherhead School of Management for the Weatherhead 100 Award, and Fast Track 50 for the Lake-Geauga Fast Track 50 Award -- all exceptional, prestigious awards in our industry.

We are immensely proud of our employees, who deserve the credit for these awards, for their extraordinary work and the dedication they continually exhibit. The results of their solid work ethic have brought honor to BackTrack and RSI through these premier awards recognizing innovative business tactics, our rapid business growth in Northeast Ohio, and an outstanding entrepreneurial spirit.

These awards also would not be possible without our loyal customers, with whom we share this great distinction.

Many thanks,

Bob Gandee Linda Gandee President/CEO Executive VP

RSI Recruiter Solutions International Employment Screening Specialists Executive Search Consultants 800-991-9694 • www.backtracker.com 800-992-3875 • www.rsipeople.com 20141110-NEWS--21-NAT-CCI-CL_-- 11/5/2014 3:44 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

31 Keller Williams Realty of Greater Cleveland 32 Foundation Software 33 Park-Ohio Holdings Corp.

Revenue 2013: $6.3 million Revenue 2013: $12.4 million Revenue 2013: $1.2 billion Percentage change: 83% Percentage change: 72% Percentage change: 72%

29225 Chagrin Blvd #105 17999 Foltz Industrial Parkway 6065 Parkland Blvd. Cleveland 44122 Strongsville 44149 Cleveland 44124 216-839-5500 800-246-0800 440-947-2000 www.KWCleveland.com www.foundationsoft.com http://pkoh.com Corporate email: [email protected] Corporate email: [email protected] Twitter: @KWGreaterCLE Twitter: @foundationsoft Year founded: 1902 Number of FTE employees worldwide as of Year founded: 2002 (locally) Year founded: 1985 Sept. 30, 2014: 5,359 Number of FTE local employees as of Sept. 30, 2014: 223 in Pepper Number of FTE local employees as of Sept. 30, 2014: Top local executive: Edward Francis Crawford, Pike, Rocky River and Cleveland Heights only 121 chairman, CEO Top local executive: Scott Phillips Jr., CEO Number of FTE employees worldwide as of Sept. 30, 2014: 126 Business description: Global, diversified industri- Business description: Keller Williams Realty of Greater Cleveland (Mur- Top local executive: Fred J. Ode, founder, CEO, chairman al holding company providing integrated supply wood Real Estate Group LLC) specializes in residential real estate sales. chain management services and highly engi- With a focus on being the best business environment for real estate Business description: Foundation Software is the neered products. agents to grow their businesses, KW has grown by over 600% locally in author/developer of FOUNDATION construction accounting the past 10 years. software.

34 MCPc 35 The Reserves Network

Revenue 2013: $286.8 million Top local executive: Mike Trebilcock, CEO Revenue 2013: $97.1 million Top local executive: Neil Stallard, CEO Percentage change: 70% Percentage change: 67% Business description: MCPc delivers an Business description: The Reserves Network 1801 Superior Ave., Suite 300 anyplace workspace — helping clients 22021 Brookpark Road offers flexible staffing services, including Cleveland 44114 empower employees to work from anywhere Fairview Park 44126 temporary, temp-to-hire and direct hire 800-777-7178 and on any device. MCPc is partnered with 866-876-2020 placements within the office, industrial, www.mcpc.com leading technology manufacturers. www.trnstaffing.com professional and technical markets. TRN is Corporate email: [email protected] Headquartered in Cleveland, with locations Corporate email: [email protected] a veteran- and family-owned, privately held Twitter: @mcpcinc across the United States, MCPc maintains Twitter: @trnstaffing staffing company, which strives to meet practices in data center, virtualization, specific needs for thousands of clients and Year founded: 1965 networks, collaboration, personal systems Year founded: 1984 job seekers. Number of FTE local employees and professional services. Number of FTE local employees as of Sept. 30, 2014: 460 as of Sept. 30, 2014: 75 Number of FTE employees worldwide Number of FTE employees worldwide as of Sept. 30, 2014: 275 as of Sept. 30, 2014: 200 20141110-NEWS--22-NAT-CCI-CL_-- 11/5/2014 3:45 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

36 Briteskies 37 Thorson Baker & Associates Inc. 38 SecureState Consulting LLC

Revenue 2013: $5.9 million Revenue 2013: $15.6 million Revenue 2013: $7.8 million Percentage change: 66% Percentage change: 62% Percentage change: 61%

6155 Rockside Road, Suite 110 3030 W. Streetsboro Road 23340 Miles Road, Bedford Heights 44128 Independence 44131 Richfield 44286 216-927-8225 216-369-3600 330-659-6688 www.securestate.com www.briteskies.com www.thorsonbaker.com Corporate email: [email protected] Corporate email: [email protected] Twitter: @SecureState Twitter: @nobrowncow Year founded: 1993 Number of FTE local employees as of Sept. 30, 2014: 12 Year founded: 2001 Year founded: 2000 Number of FTE employees worldwide as of Sept. 30, Number of FTE local employees Number of FTE local employees as of Sept. 30, 2014: 25 2014: 134 as of Sept. 30, 2014: 50 Top local executive: William Onion, Michael Berlin Top local executive: Michael G. Thorson Number of FTE employees worldwide as of Sept. 30, 2014: 51 Business description: Briteskies is a full-service solution compa- Business description: Thorson Baker & Associates pro- Top local executive: Ken Stasiak, CEO ny for ecommerce, enterprise software and the integration of vides engineering services for the building construction in- these systems. It helps customers bring brands, products and dustry and offers structural, mechanical, commissioning, Business description: SecureState is a management services to the online marketplace. Briteskies is a Magento Sil- electrical and technology engineering services nationwide, consulting company specializing in information secu- ver Solution Partner, an Oracle/JD Edwards Gold Partner and an and professional registration in 49 states, the District of rity. It partners with clients to solve complex busi- IBM Premier Business Partner with expertise in both the Web- Columbia, Puerto Rico, British Columbia and Alberta, Cana- ness problems by using technical security and risk Sphere family of products and iSeries-based applications. da. Civil engineering and landscape architecture services services to facilitate strategic thinking and improve are offered throughout the Midwest. an organization’s overall security risk posture.

39 Corrigan Krause CPAs 40 Turning Technologies LLC

Revenue 2013: $5.3 million Revenue 2013: $48.9 million Percentage change: 60% Percentage change: 45%

2055 Crocker Road, Suite 300 255 W. Federal St., Youngstown 44503 Westlake 44145 866-746-3015 440-471-0800 www.turningtechnologies.com www.corrigankrause.com Corporate email: [email protected] Twitter: @TurningTech Year founded: 1989 Number of FTE local employees as of Sept. 30, 2014: 42 Year founded: 2002 Top local executive: Thomas L. Harrison, managing director Number of FTE local employees as of Sept. 30, 2014: 158 Number of FTE employees worldwide as of Sept. 30, 2014: 287 Business description: Corrigan Krause is a midsize CPA firm in Westlake, Top local executive: Michael Broderick, CEO specializing in closely-held businesses. It provides various accounting, tax and consulting functions to companies and their owners, as well as value-added Business description: Turning Technologies is a global partner for learning engagement and assessment services services beyond the typical compliance services most businesses need. focused on improving teaching and learner success. Its solutions, including student response technology, manage, enhance and deliver instructional and assessment content to improve educational outcomes while collecting critical data for use in meaningful ways.

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3250 Interstate Drive | Richfield, Ohio 44286 | 800-929-1500 | www.natl.com Central Ohio Region Ofﬁces in: Dublin • Westerville 20141110-NEWS--23-NAT-CCI-CL_-- 11/5/2014 3:57 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23

41 Alpha Imaging 46 Kaman’s Art Shoppes Inc.

Revenue 2013: $66.0 million Number of FTE employees Revenue 2013: $35.3 million Percentage change: 43% worldwide as of Sept. 30, 2014: 85 Percentage change: 29% Top local executive: 4455 Glenbrook Road Michael Perrico, CEO 16838 Park Circle Drive Willoughby 44094 Chagrin Falls 44023 440-953-3800 Business description: An independent 440-708-1909 www.alpha-imaging.com sales and service provider of ad- www.kamansart.com Corporate email: vanced medical imaging equipment. Corporate email: [email protected] [email protected] With 28 years in the imaging industry, Alpha Imaging partners with global Year founded: 1971 Year founded: 1986 manufacturers to deliver products and Number of FTE local employees as of Sept. 30, 2014: 30 Number of FTE local employees services that meet the clinical, opera- Number of FTE employees worldwide as of Sept. 30, 2014: 1,200 as of Sept. 30, 2014: 15 tional and economic needs of the U.S. Top local executive: Tricia Kaman, president, co-founder health care market. Business description: Art and photo retail concessions for amusement parks and zoos.

42 Osborn Engineering

Revenue 2013: $9.1 million Top local executive: Percentage change: 42% Lee V. Hooper, CEO

1100 Superior Ave., Suite 300 Business description: Osborn, an Cleveland 44114 employee-owned firm, is a fully 216-861-2020 integrated, multidisciplined design firm www.osborn-eng.com that uses a specialized team approach Corporate email: to engineering projects. With special- [email protected] ists in civil, structural, electrical, Twitter: @Osborn_Eng mechanical and technology engineering, it aims to provide a Year founded: 1892 turnkey design solution. Number of FTE local employees as of Sept. 30, 2014: 90

43 PartnerShip LLC

Revenue 2013: $23.7 million Top local executive: John J. Finucane, Percentage change: 33% president, chief operating officer

29077 Clemens Road Business description: PartnerShip LLC Cleveland 44145 is a shipping solutions provider to more 800-599-2902 than 17,000 businesses across North www.partnership.com America. It aims to help customers Corporate email: save time and money in all facets of [email protected] shipping and logistics, including LTL freight, truckload, tradeshow, expedit- Year founded: 1989 ed and small package shipping. Number of FTE local employees as of Sept. 30, 2014: 45

44 Farmers National Bank

Revenue 2013: $48.5 million Number of FTE local employees as of Percentage change: 33% Sept. 30, 2014: 327 Top local executive: Kevin Helmick, 20 S. Broad St. president, CEO Canfield 44406 888-988-3276 Business description: Based in Can- www.farmersbankgroup.com field, Farmers offers 19 locations and Corporate email: two trust offices throughout customersupport@farmers- Columbiana, Mahoning, Trumbull, bankgroup.com Stark and Cuyahoga counties. Farm- Twitter: @farmersbnkgroup ers also offers an array of wealth management services, including invest- Year founded: 1887 ments, insurance and private client services.

45 Talan Products Inc.

Revenue 2013: $24.3 million Number of FTE local employees Percentage change: 32% as of Sept. 30, 2014: 70 Top local executive: Steve Peplin, CEO 18800 Cochran Ave., Cleveland 44110 216-458-0170 Business description: Talan is a www.talanproducts.com provider of contract manufacturing Corporate email: sales@talanprod- services, specializing in progressive ucts.com die metal stamping, aluminum extru- Twitter: @TalanProducts sions supply and fab and assembly.

Year founded: 1986 20141110-NEWS--24-NAT-CCI-CL_-- 11/5/2014 3:45 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELANDp.COM NOVEMBER 10 - 16, 2014

47 e2b teknologies Inc. 48 Herschman Architects Inc.

Revenue 2013: $5.9 million Business description: e2b Revenue 2013: $11.1 million Top local executive: Mike Crislip, president Percentage change: 29% teknologies is a Microsoft-man- Percentage change: 24% aged partner providing cloud- Business description: Herschman Architects specializes in 521 Fifth Ave., Chardon 44024 based business software applica- 25001 Emery Road, Suite 400, Cleveland 44128 architecture, engineering and interior design. Project 440-352-4700 tions and services. The company 216-223-3200, www.herschmanarchitects.com types include: retail stores, shopping centers, www.e2btek.com develops custom cloud-based Corporate email: [email protected] salons/spas, restaurants, industrial/warehouse, office Corporate email: business applications and is the buildings, corporate and medical offices, religious facili- [email protected] publisher of Anytime Collect A/R Year founded: 1974 ties and residential. The firm celebrates its 40th anniver- Twitter: @e2bteknologies management software, Anytime Number of FTE local employees as of Sept. 30, 2014: 66 sary in 2014; offices are located in Tucson, Los Angeles Supply Chain, Anytime Commerce Number of FTE employees worldwide and Cleveland. Year founded: 2001 and related products. e2b as of Sept. 30, 2014: 75 Number of FTE local employees teknologies also resells leading as of Sept. 30, 2014: 44 ERP & CRM software including Top local executive: Bill Henslee, Sage 100, Sage 500, Sage ERP CEO X3, Epicor ERP, Sage CRM and SugarCRM. 49 The Millcraft Paper Co.

Revenue 2013: $140 million Business description Founded in 1920, The Millcraft Pa- Percentage change: 23% per Company is an independent, fourth-generation distributor of printing and office papers, envelopes, packaging, 6800 Grant Ave., Cleveland 44105 and graphic design products. The Millcraft service plat- 216-441-5500, www.millcraft.com form has 17 sales and retail distribution locations in 14 Corporate email: [email protected] Midwest cities in Ohio, Kentucky, Indianapolis, Michigan, Twitter: @MillcraftPaper New York and Pennsylvania. Millcraft is nationally and locally certified as a woman-owned diversity business. Mill- Year founded: 1920 craft paper and product lines are environmentally certified Number of FTE local employees as of Sept. 30, 2014: 71 by the Forest Stewardship Council and the Sustainable Number of FTE employees worldwide Forestry Initiative. as of Sept. 30, 2014: 224 Top local executive: Travis M. Mlakar, president & Sell 50 HzW Environmental Consultants LLC

Revenue 2013: $5.1 million Business description: HzW is a provider of environmental Percentage change: 18% consulting services in Ohio. HzW is recognized as a DBE EVERYTHING! by ODOT, an Ohio EDGE firm, a FBE by Cleveland and a 6105 Heisley Road, Mentor 44060, 440-357-1260 DBE and SBE with Cuyahoga County. HzW has been in www.hzwenv.com, Corporate email: [email protected] continuous operation since 1987. It has offices in Mentor, T Tools Akron, Canton and Euclid. HzW’s professional services in- Year founded: 1987 clude: geological services, including brownfield investiga- Number of FTE local employees as of Sept. 30, 2014: 28 tions and environmental site assessment services; industri- Top local executive: Barbara L. Knecht, CEO al hygiene and safety services, including asbestos services, lead-based paint investigations and safety ser- HGR Industrial Surplus, 20001 Euclid Ave., Euclid (216) 200-4110 vices; wetlands and ecological services; industrial environmental compliance services, (air permitting, SARA report- www.hgrinc.com ing, hazardous waste compliance).

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E-2 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement TABLEOFCONTENTS PRESIDENT’S LETTER Business climate Trusts Now is the Make sure your trustee is some- Whether you’re contemplating one who will carry out your your estate portfolio, or looking wishes. E-12 to E-15 to fine-tune your existing plan, time to tackle there are a variety of resources Arts and collectibles available to help you achieve Legitimate appraisals will help estate planning your goals. E-3 to E-4 you determine value and whether JENNIFER SAVAGE those who are members of the it’s appropriate to sell or keep Estate Planning Council, can help Gifts to family, these coveted items. E-15 to E-16 n concert with Crain’s Cleve- you evaluate how your personal land Business, the Estate financial goals have been affected Asset protection IPlanning Council of Cleveland by market and legislative changes Insurance is pleased to present our in the United States as From conversions to Roth IRAs, annual Estate Planning well as events on the Different products protect you world stage. If necessary, inherited IRAs and family phi- section. and your assets. E-24 to E-27 The purpose of this they can assist you in lanthropy, these subsets of estate section is to provide the the establishment of new goals in order to enhance planning warrant careful consid- community with valuable Business Planning information and resources the effectiveness of your eration. E-4 to E-10 regarding financial, insur- financial plan. Specifically, Your business is a key part of ance, business succession, they are equipped to help your long-term goals. E-28 and estate and charitable you with the methods, planning mat- SAVAGE techniques and Charitable giving ters. The articles documents that We hope that you will will enable you to Philanthropic contributions of- that follow — written by some find (this section) to attain your goals, fer financial benefits, and per- of the region’s whether they most experienced be an indispensable include taking haps more importantly, enhance professionals in care of a loved your legacy. E-11, E-16 to E-23 these fields — resource as you work one with special may answer some with your advisors to needs, transi- of your questions tioning a family- or, perhaps, help plan a sound financial owned business, you to formulate fulfilling a questions that future. commitment to a you may wish to address with your charitable organi- financial advisor. zation, planning for retirement, or Estate planning is an often over- establishing a legacy. looked aspect of personal financial Founded in the 1930s, the Estate management. Millions of Americans Planning Council of Cleveland, with do not have an up-to-date estate more than 430 members, has grown plan and/or medical directives, leav- to become the sixth largest such or- ing them vulnerable in the event of ganization in the country. Among its illness, accident or untimely death. members are attorneys, accountants, Each year, this results in the ex- financial planners, investment advi- penditure of wasted dollars and the sors, bankers and trust officers, in- creation of unnecessary hardship for surance representatives, appraisers National firm expertise… families, loved ones and businesses, and people engaged in the operation all of which could be avoided or at of charitable organizations. From local attention. least softened with the foresight of personal experience, I can assure you advance planning. that our members are committed to We have entered a more stable their clients and their community Our team of specialists brings an unequaled period, at least in the transfer tax and are here to provide you with the arena. This relative certainty pres- assistance you will need to safeguard combination of experience and commitment to ents us with some tools and oppor- your financial future. Our website, provide you with value-added accounting and tunities to plan for and capitalize www.epccleveland.org, is a valuable on the economic, financial, other resource that can help you to identify business advisory services. tax, and political changes that we the professionals you will need to do continue to face both at home handle your unique situation. and abroad. Lower interest rates On behalf of the Estate Planning and volatile markets can provide Council, I am pleased to provide you opportunities to leverage transfer with this special section in Crain’s tax benefits. It remains imperative Cleveland Business, which contains that people preserve and protect important insights and commentary on a variety of estate planning is- Cleveland 216.363.0100 the assets that they have built over the years — not only for them- sues. We hope that you will find it to Canton 330.966.9400 selves, but also for their family be an indispensable resource as you Elyria 440.323.3200 members, heirs and favorite chari- work with your advisors to plan a Delaware 740.362.9031 table organizations. In order to sound financial future. maloneynovotny.com do this, it is wise to rely upon the services of experienced profession- Jennifer Savage is a partner in the als who are familiar with income, Tax & Wealth Management Sec- gift and estate tax laws and who tion at Walter Haverfield LLP and are current in their knowledge of president of the Estate Planning the financial and investment world. Council. Contact her at 216-928- These professionals, such as 2971 or [email protected].

Disclaimer The material presented in this special section is of a general nature and does not constitute investment, legal, tax or accounting advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions expressed herein are subject to change without notice. Seek the advice of an investment professional to tailor an estate plan to your needs.

Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-3

BUSINESS CLIMATE Estate planning? It’s all about control the following people get- ent types of trusts, you can BY HOWARD J. KASS fairly? They may not mean the same ting your money? control not only what your thing. Once you know who is getting ince 2010, when Congress n Your spouse’s next love heirs may receive from your what, your advisor can begin to craft allowed the repeal of the interest estate but also how quickly a strategy to protect and control S estate tax to briefly take ef- n Your children’s exes or slowly they receive it, and your assets well beyond your grave. fect and then reinstated it with a n Your family’s creditors you can prevent unintended Still not convinced? Don’t worry. combination of unheard-of exemp- Do you worry about your parties from receiving ben- If you don’t create an estate plan, tion amounts and spousal portabil- family’s ability to efits from your estate. the state of Ohio has one for you. Preparation, ity, we have been functioning in manage their money? You just won’t like it! a very low-tax or, in many cases, If you do no estate plan- KASS Where to begin a no-tax estate planning environ- ning, you make all these outcomes The first step is to sit down with Howard Kass, CPA, AEP, is a Tax focus key to ment. The result? Many people possible, yet they are preventable. your estate planning advisors to Partner with Zinner & Co. LLP. believe that estate planning is no By creating a comprehensive es- identify and write down your goals Contact him at 216-831-0733 or longer necessary, but nothing could tate plan, you can put safeguards in for your estate. Who should get [email protected]. Learn more productive be further from the truth. place to prevent all these outcomes. what, and when? Are all of your about the company’s financial and investment Are you concerned about any of Through the judicious use of differ- children to be treated equally or consulting services at zinnerco.com. portfolio checkup

BY JOHN P. MICKLITSCH HOW CAN SOMEONE HAVE ike a trip to the doctor’s ALL YOUR ANSWERS BEFORE office, a productive per- L sonal investment checkup requires pre-planning and focus. THEY ASK ANY QUESTIONS? In the days and weeks leading up to your investment checkup, it is important for you to establish Clairvoyance isn’t one of our skills. your goals for the meeting and But curiosity is. to communicate them with your advisor in It’s what leads us to listen to you. advance so that MICKLITSCH he or she can To think about what you’re telling us. prepare accord- ingly. You might, for example, And then ask thoughtful questions. want to communicate what personal circumstances have changed in It’s the only way to crack the puzzle. your life since your last checkup or email specific questions you have about your portfolio. Because the answers don’t just jump out. On the day of your meeting you should arrive on time, fed and well You have to dig. Subordinated debentures, rested so that you can communicate and process what you are equity infusions and other solutions are hearing at your highest potential level. During the meeting, it is all well and good, but when is the right important to review your personal goals and objectives and have your time to use them? financial advisor reinforce why the portfolio you own is a reflection And why? of those needs. In addition, you might want to ask what investment opportunities exist that you Shouldn’t your bank want to ﬁnd out? are not currently taking advantage of and then weigh their applicabil- We do. ity to your personal situation. Lastly, the time is yours and you should not feel rushed in any way Learn more at 53.com/Commercial during your investment checkup. An experienced financial advisor will take the time to answer We’re Fifth Third Bank. all of your questions and explain the ones he or she will have to research in order to answer properly. You should leave the checkup feeling reassured that your investments are reflective of your The curious bank.® goals and objectives and that you understand what you own in the portfolio and why you own it. You might even leave feeling a little tired because an investment portfolio checkup can be hard work. Like most things in life, you will get out of it what you put into it.

John P. Micklitsch, CFA, CAIA, is Deposit and credit products provided through Fifth Third Bank. Member FDIC. Equal Housing Lender. Chief Investment Officer for An- Lending is subject to credit review and approval. cora Advisors, LLC. Contact him at 216-825-4000 or johnmick@ ancora.net. Crain’s Cleveland Business Custom Publishing E-4 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

Estate planning is not just about the tax bill. BUSINESS CLIMATE It’s About Control. Estate planning is more than tax planning; Jackpot! Contending it ensures that you control what happens to your assets after you’re gone. The estate planning experts at Zinner & Co. can help you to identify specic needs and then craft strategic plans. with sudden wealth Seeking the advice of a financial BY CHARLES J. AVARELLO Establishing a revocable trust planner to help you quantify your while you are alive is the easiest ongratulations! You’ve just goals and quarterback the team way to control how assets should of service providers you now need be distributed after you are gone. The right ideas had the good fortune of coming into a large should be your first step. Do you have enough liability The right results C windfall of money. Maybe From there, the planner insurance if someone falls on your Achieved with the right firm you won the lottery or sold will be able to help you property or if you are in an ac- the family business. Maybe evaluate the immediate cident? Do you now have too much 3201 Enterprise Parkway, Suite 410 Beachwood, OH 44122 a long-lost relative passed tax implications of the (or not enough) life insurance? 216.831.0733 [email protected] away and named you as the wealth event and help you Protecting this asset also means beneficiary of his or her es- formulate a sound strategy evaluating with your planner tate, or you received a lump for preserving the money whether you have the appropriate sum payout after working at throughout your lifetime – levels of insurance coverage. AVARELLO your company for 30 years. if that is your goal. Finally, salesmen will be coming Whatever the cause of the out of the woodwork looking to windfall, the inevitable question that convince you that you need their “I want to ensure that comes next is: “What do I do now?” Review your estate plan financial products. An experienced there is a solid future Most people’s kneejerk reaction Part of that strategy discussion planner will help you put on the is figuring out how to spend their should include bringing in an attor- brakes, navigate through the noise, for increased capacity newfound wealth. Let’s take that ney to update your current estate and enable you to be an informed expensive vacation. Let’s pay off the plan, ensuring that the money buyer making rational decisions. for ideastream news house or maybe look at upgrading to passes on according to your wishes. reporting staff. The a bigger home. Let’s buy a fancy new Contrary to popular belief, now Charles J. Avarello, CPA, CFP, is a car or jewelry. What often gets lost in that you have significant wealth senior manager for Fairway Wealth need for local and the shuffle is how to protect this new doesn’t necessarily mean that your Management. Contact him at 216- asset and make it last. estate plan has to be complicated. 573-7200 or [email protected]. regional news stories is now more important I BELIEVE IN than ever.” GIFTS TO FAMILY | ASSET PROTECTION - Patrick Shepherd Strategic thinking around giving

Find out more at as funding needs increase ideastream.org/support fund, but at least you made the deci- BY HEIDI JARK our giving. Many people are afraid of sion knowing what lies ahead. There saying “no” and fear that the organi- ur jobs as donors, grant will still be surprises and unplanned zation will be disappointed in them makers or “philanthropists” needs along the way, but there will or will think less of them because of Ohave never been as simple be less of them and you’ll feel more in the decline. The truth of the matter as we make the description sound. control. is that charities appreciate We make decisions that impact Mission statement. Have knowing a decision has been lives every day. Our job seems to you taken the time to think made one way or the other, ANCORA be getting tougher though as we about your mission? If not, because it allows them to move forward in the days ahead. take some time as a group move forward with other av- We have always stood ready for the and put it down on paper. enues of support. Instead of Because your goals are counting on you.™ challenges before us, but it seems It may take some time but just saying “no,” add clarity that leaders at the local, state, and it is well worth the effort. to the decision by letting the national level are looking to the A mission statement tells organization know what led the world who you are and you to that decision. If the not-for-profit world, and foundations JARK and wealthy families in particular, to what your focus areas will organization can come back carry more weight than our shoul- be, even if it just tells them at a later date, be clear in Ancora Advisors ders can possibly handle. We can do the geographic area you’ll serve. It the timing of that future request. No our best to fill the gap, but we know helps you to be laser focused in your matter what decision you make, the it won’t likely be enough. work and, when communicated on a charity should respect your decision. So what can we do to prepare regular basis, will alert charities as If they don’t, that sends a message to ourselves for these uncertain days to whether you are a viable prospect you about your future involvement Your Estate Planning ahead? Are there steps we can take for funding. with them. to make the path of giving clearer Investment Strategy. It’s important Sometimes we are overwhelmed now and in the future? Here are to review your investments with advi- with requests and become frustrated four recommendations we’ve put sors regularly and make sure that that we can’t do more. Bringing focus into practice in our work that have board members understand what’s and structure to your gifting can help Investment Partner helped to make our giving more in the portfolio and why it’s there. If relieve some of that stress. In the impactful: you don’t have a written investment end, sometimes all we can do is believe in the words that the songstress Budgeting. Instead of thinking of policy, put it at the top of the agenda what’s ahead for the year, start to for your next meeting. This will not Catie Curtis sings so eloquently, “If think in terms of a two- to three- only help your money manager do I can’t change the world, I’ll change Asset Allocation . Fixed Income year window. Many organizations their job, but it helps the board focus the world within my reach.” Hope- plan capital campaigns a year or on their jobs as fiduciaries and good fully that will be enough. Equities . Alternatives two before they start. Encourage stewards of those funds. organizations to talk with you in Learning to Say “No.” The hardest Heidi B. Jark is Managing Direc- the early stages of ideas rather than part of our jobs is saying “no” to a tor, Foundation Office, Fifth Third at the end. You still may decide to request; but it’s an absolute neces- Bank. Contact her at 513-534- 6060 PARKLAND BOULEVARD, SUITE 200 wait until the end of the campaign to sity if we want to have real impact in 4397 or [email protected].

CLEVELAND, OH 44124 Opinions are provided by Fifth Third Bank and may not actually come accountant, tax advisor or attorney for advice pertinent to your per- 216.825.4000 . 216.825.4001 (FAX) to pass. This information is current as of the date of this commentary sonal situation. Fifth Third Bancorp provides access to investments and is subject to change at any time, based on market conditions and and investment services through various subsidiaries. Investments WWW.ANCORA.NET other events. This commentary is intended for educational purposes and Investment Services: Are Not FDIC Insured, Offer No Bank only and does not constitute the rendering of tax or legal advice or Guarantee, May Lose Value, Are Not Insured By Any Federal Govern- a specific recommendation on estate or financial planning activities. ment Agency, Are Not A Deposit. Insurance products made available Fifth Third does not provide tax or legal advice. Please contact your through Fifth Third Insurance Agency, Inc.

Crain’s Cleveland Business Custom Publishing THE ESTATE PLANNING COUNCIL OF CLEVELAND

PRESIDENT VICE-PRESIDENT SECRETARY TREASURER PROGRAM CHAIR IMMEDIATE PAST PRESIDENT Jennifer A. Savage Michael T. Novak Michael W. Matile Emily Shacklett Julie A. Fischer Beth M. Korth

Tanzie D. Adams Howard B. Edelstein Matthew A. Kali Hoyt C. Murray N. Lindsey Smith Charles F. Adler, III Elaine B. Eisner Joseph W. Kampman Norman T. Musial Cristin Snodgrass Thomas D. Anderson Michael E. Ernewein Karen J. Kannenberg Christine A. Myers Arthur K. Sobczak, III Graham T. Andrews Heather R. Ettinger Lori L. Kaplan Raymond C. Nash Sondra L. Sofranko Gordon A. Anhold Christina D. Evans William E. Karnatz, Sr. Jodi Marie Nead James Spallino, Jr. Gary S. Archdeacon Susan M. Evans William E. Karnatz, Jr. Lisa Wheeler Neely Richard T. Spotz, Jr. Kemper D. Arnold Darren A. Ewaska Bernard L. Karr Chad J. Neifer William L. Spring James S. Aussem Frank Fantozzi Howard Kass Robert Nemeth Laura B. Springer P. Thomas Austin Charles E. Federanich John D. Kedzior Michael H. Novak Timothy H. Stallings Charles J. Avarello Timothy Allan Ferris Lesley Keller Anthony J. Nuccio M. Randal Stancik Molly Balunek J. Paul Fidler Veena Khanna Eric A. Nye Stacey Staub Peter Balunek Julie E. Firestone William J. Kimball Kevin J. O’Brien Kimberly Stein Kimberly J. Baranovich Mary Kay Flaherty Woods King, III Michael J. O’Brien Laurie G. Steiner Albert J. Barnabei Linda Fousek Amy I. Kinkaid Lacie L. O’Daire Saul Stephens Lawrence C. Barrett Kenneth J. Francis-Sable Richard B. Kiplinger Linda M. Olejko E. Roger Stewart Ronald E. Bates Maryann C. Fremion Andrew W. Kirkpatrick Matthew S. Olver Beverly A. Stiegele Stephen Baumgarten Patricia L. Fries Paul S. Klug Leslie A. O’Malley Diane M. Strachan Maureen K. Beaver Naomi D. Ganoe Victor G. Kmetich Charles J. O’Toole Thomas B. Strauchon Edward J. Bell Stephen H. Gariepy Daniel R. Kohler Richard M. Packer John E. Sullivan, III Steven Berman Rao K. Garuda James R. Komos Donesha L. Peak Linda DelaCourt Summers H. William Beseth, III James E. Gaydosh Harvey Kotler Jodi L. Penwell Scott E. Swartz Gina Marie Bevack-Ciani Kyle B. Gee Roy A. Krall Michael D. Pepe Joseph N. Swiderski Mohammed J. Bidar Christopher Geiss Frank C. Krasovec, Jr. Dominic V. Perry Yeshwant K. Tamaskar Gary B. Bilchik Thomas M. Genco Thomas W. Krause Craig S. Petti Susan P. Taylor Michelle M. Bizily Arthur E. Gibbs, III James B. Krost Marla K. Petti Mark M. Tepper Alane Boa Thomas C. Gilchrist Deviani Kuhar Thomas Pillari Barbara Theolos Tami M. Bolder Catherine Klima Gletherow Craig A. Kukla Timothy J. Pillari Donna Thrane Daniel L. Bonder Ronald J. Gogul Anthony C. Kure Jennifer N. Pinkerton Eric Tolbert Aileen P. Bost Scott A. Gohn Louis D. LaJoe Douglas A. Piper G. Maxwell Toole Christ Boukis James A. Goldsmith Gary E. Lanzen Candace M. Pollock Floyd A. Trouten, III Jill A. Branthoover Susan S. Goldstein Steven P. Larson Mary Ellen Potter Mark A. Trubiano Herbert L. Braverman Tom S. Goodman Donald Laubacher Douglas Price Patrick J. Tulley Christopher Paul Bray Laura Joyce Gorretta Daniel J. Lauletta Rebecca Yingst Price Thomas M. Turner James R. Bright Lawrence I. Gould Paul J. Lehman Matthew M. Pullar Diann Vajskop Don P. Brown David A. Grano David M. Lenz Maria E. Quinn Robert A. Valente Kenneth B. Brown Alexandra G. Gray Herbert B. Levine Susan Racey Jaclyn L.M. Vary C. Richard Brubaker Karen L. Greco Wendy S. Lewis Uma M. Rajeshwar Missia H. Vaselaney Robert M. Brucken Sally Gries Keith M. Lichtcsien Jerey H. Reitzes Joseph Frank Verciglio Bethany J. Bryant Anne Marie Grith Miranda C. Licursi Linda M. Rich Catherine Veres Martin J. Burke, Jr. Alan M. Gross Dennis A. Linden R. Andrew Richner Anthony Viola Eileen M. Burkhart James P. Gruber James Lineweaver Radd L. Riebe Mary Eileen Vitale J. Donald Cairns Ellen E. Halfon David F. Long Elton H. Riemer Michael A. Walczak Carl Camillo Jennifer R. Hallos Ted S. Lorenzen Kathleen K. Riley Kimberly A. K. Walrod William G. Caster Patrick A. Hammer Amy R. Lorius Frank M. Rizzo Kittie Warshawsky Jennifer Chess Sarah Hannibal Janet Lowder Lisa Roberts-Mamone Robert W. Wasacz James R. Chriszt Ronald F. Hanson Edward C. Lowe David A. Robertson Neil R. Waxman Trevor R. Chuna Dana G. Hastings Robert M. Lustig Kenneth L. Rogat Ronald F. Wayne Mark A. Ciulla Douglas R. Hastings James M. Mackey Carrie A. Rosko Julie A. Weagra R. Michael Cole Lawrence H. Hatch Stanley J. Majkrzak Philip B. Rosplock Michael L. Wear Warren Coleman Thomas I. Hausman Chad Makuch Debbie Rothschild Wade T. Weber Katherine E. Collin Janet W. Havener Laura J. Malone Larry Rothstein Stephen D. Webster Jerey P. Consolo Albert G. Hehr, III Karen T. Manning Rennie C. Rutman David G. Weibel James I. W. Corcoran Jennifer Heimlich Wentworth J. Marshall, Jr. Patrick J. Saccogna Jery L. Weiler Heather A. Cornell Theodore N. Hellmuth Donald C. May Elizabeth W. Salisbury Richard Weinberg Barbara J. Cottrell James M. Henretta Nancy McCann Fran Mitchell Schaul Katherine E. Wensink Greg S. Cowan Mark W. Hicks Karen M. McCarthy Ronald S. Schickler Elizabeth Wettach-Ganocy Steven Cox Jean M. Hillman Larry E. McCoy Bradley Schlang Marcia J. Wexberg Thomas H. Craft Mark L. Homan Robert F. McDowell, Jr. Mark C. Schulman Terrence B. Whalen M. Patricia Culler Doris Hogan Erica E. McGregor Dennis F. Schwartz Andrew Whitehair Cheryl A. D’Amico Ronald D. Holman Daniel J. McGuire June A. Seech Frederick N. Widen William T. Davis Harold L. Hom Joseph M. Mentrek John S. Seich Erica K. Williams Dana Marie DeCapite Robert S. Horbaly Lisa H. Michel Doris A. Seifert-Day Georey B.C. Williams Thomas A. DeWerth Brent R. Horvath Mark A. Mihalik Marc J. Servodio Scott A. Williams Carina S. Diamond Michael J. Horvitz Lawrence Mihevic Andrea M. Shea J. Mark Wipper David S. Dickenson, II Stuart M. Horwitz Charles M. Miller Stanley E. Shearer Teresa M. Wisniewski James G. Dickinson Douglas Ingold William M. Mills John F. Shelley Nelson J. Wittenmyer Nick DiSanto Lynnette Jackson Daniel F. Miltner Lea R. Sheptak Matthew D. Wojtowicz Mary Ann Doherty George A. Jacobs Wayne D. Minich Nick Shofar Carol F. Wolf Lynda Doland Paula Jagelewski Ginger F. Mlakar Douglas E. Shostek Brenda L. Wol Terry Ann Donner Christopher P. Jakyma Marie L. Monago Roger L. Shumaker Alan E. Yanowitz Timothy Doyle Barbara Bellin Janovitz M. Elizabeth Monihan Gary M. Sigman James D. Yurman Emily A. Drake Theodore T. Jones Michael J. Monroe Matthew J. Silla Jerey M. Zabor Therese Sweeney Drake James O. Judd Robert C. Moore Judith C. Singer David M. Zolt Jill Dugovics Matthew F. Kadish Philip G. Moshier Mary Jean Skutt Jack Zugay William A. Duncan Stephen L. Kadish Joseph L. Motta Mark A. Skvoretz Gary A. Zwick Carl J. Dyczek Ronald L. Kahn Susan C. Murphy John M. Slivka Donald F. Zwilling E-6 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

GIFTS TO FAMILY | ASSET PROTECTION Ohio Legacy Trust protects part of charity’s unrestricted endowment

BY FRAN MITCHELL SCHAUL, The charity would name an MARCIA J. WEXBERG AND independent trustee — preferably CHERYL A. D’AMICO an institutional trustee, but in to permit the organization to use any event not the organization or property owned by the trust — a he Ohio Legacy Trust statute members of its board — to admin- useful provision for an organization went into effect 18 months ister the trust. with creditor challenges. T ago. Since then, individuals The trust instrument would The organization can — and have been able to transfer some authorize the trustee to make probably should — retain control of their assets to an Ohio Legacy distributions to the organization of the trust investments, either Trust, name themselves as a trust SCHAUL WEXBERG D’AMICO for purposes that further its directly or by the appointment of beneficiary and protect the trust charitable mission. These an Investment Committee com- assets from their own future credi- purchase of significant amounts restricted”) endowment funds, purposes are typically spelled prised of members selected by the tors. This represents a significant of liability insurance. Yet certain which can comprise a significant out in the charity’s articles of organization. change in Ohio law and an exciting types of risks may not be able to portion of an organization’s endow- incorporation or other governing The trust instrument is required opportunity for those who are seek- be covered by liability insurance, ment — and which are generally instrument(s). The timing and to be in writing and irrevocable, ing ways to protect some of their and those that are may have lim- preferred by a charity because of amount of these distributions the organization must remain assets from judgment creditors, di- its or exclusions, including limits the programming flexibility they would be at the discretion of the “solvent” after transferring assets vorcing spouses and others in this imposed by the kind of shared afford — do not have this protec- trustee (or an independent Distri- to the trust, and the transfer of as- era of runaway juries and “jackpot coverage arrangement employed tion. butions Committee named by the sets to the trust must be made by justice.” by many charitable organizations. As a result, an uninsured or board). the organization without any Though relatively new, the Ohio Moreover, at some point the pur- underinsured claim or judgment In addition, the organization intent to defraud existing or Legacy Trust is considered one chase of additional liability insur- may expose the charity to the risk could retain the right to receive reasonably foreseeable creditors. of the nation’s best statutes of its ance may become quite costly. All of a catastrophic loss that may some or all of the trust income In addition, the organization kind. The Ohio draftspersons took of these factors contribute to the necessitate a reduction or even ces- each year, and/or the right to would follow certain technical the best of what other states had risk profile and exposure of the sation of services provided by the withdraw up to 5% of the trust procedures designed to assure enacted and improved upon it. organization. organization. principal each year. This may the retention of its exempt status This article focuses upon a We have all heard stories about be appropriate if the organiza- and the tax-exempt nature of the lesser-known but equally valuable charitable (including educational) tion wants to be sure that it will Trust’s income. use for the Ohio Legacy Trust: the institutions that have lost a signifi- Protection from receive distributions equal to the This is a valuable tool that protection of some portion of a cant portion of their endowment as future claims annual spending policy established should be of interest to everyone charitable endowment. a result of large, unexpected judg- The good news is that by trans- by the board. The decision to re- involved with a charitable board. It is a given that the members ments. Significantly, a charitable ferring some of its unrestricted en- tain these rights would need to be of the board of a charitable orga- organization’s endowment funds dowment funds to an Ohio Legacy weighed against the consideration Fran Mitchell Schaul, Marcia J. nization have a fiduciary duty to are not protected from the claims Trust a charitable organization that mandatory distributions and Wexberg and Cheryl A. D’Amico protect the organization’s endow- of the organization’s creditors should be able to protect those assets the organization is permit- are members of the Estate and ment and to manage foreseeable unless the use of those funds has assets from the claims of future ted to withdraw will generally Succession Planning practice risks. This is a task that chari- been permanently restricted by the creditors. The provisions of such a be available to the organization’s group at Calfee, Halter & Griswold table boards take very seriously, organization’s donors. Unrestricted trust might look something like the creditors. LLP. For more information, please and it is often addressed by the (sometimes referred to as “board following: The trustee could be authorized visit Calfee.com.

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GIFTS TO FAMILY | ASSET PROTECTION Roth IRA benefits may be worth tax hit be deferred until death. Distribu- reduces the owner’s taxable tions are required from a regular estate. This might not Carefully weigh your options IRA to an individual upon reaching seem like the best way age 70½. The distribution is taxed to reduce estate taxes, before initiating a conversion when made and the funds leave but with a regular IRA conversion. the very valuable IRA environ- not only is the value BY CHRISTOPHER P. BRAY Conventional planning wisdom ment where they were formerly of the IRA subject to growing tax-free. No distributions estate tax, but the in- oth IRAs have become in- tells us that it’s better to pay tax are required from a Roth IRA heritors also get stuck creasingly popular because tomorrow than today. However, while the owner is living. Why not with the income tax li- of the twofold ben- conversion often has significant R keep the funds growing tax-free if ability related to the IRA. efit of tax-free compound- advantages for individuals they aren’t needed to fund living This is not the case with a ing of investment income who have non-IRA funds to expenses? Roth IRA. combined with tax-free pay taxes related to conver- The decision to distributions. The quickest sion, who won’t need the convert requires way to establish a sizable funds to provide for living Tax-free distributions to ben- If structured properly, consideration of Roth IRA is to “convert” expenses in retirement, eficiaries. the Roth IRA can continue build- multiple variables a regular IRA into a Roth and who will be subject to ing tax-free for the benefit of the and should not be IRA. Large IRAs usually the federal estate tax. In owner’s family after the owner undertaken lightly. arise when someone “rolls” this case it may make more dies. Although Roth IRA distribu- Consider seeking an employer retirement BRAY financial sense to pay taxes tions are required after the owner’s help from a qualified savings into a regular IRA now related to converting a death, they can be stretched over planning professional. upon leaving an employer. Most regular IRA to a Roth IRA. many years and the distributions people, however, haven’t con- are tax-free. Christopher P. Bray, JD, CPA, is verted their regular IRA to a Roth Benefits of Roth IRAs IRA. Why not? Because the cost managing director for Ariel of conversion is current payment Taxable estate reductions. Capital Advisors, LLC. Contact When the owner pays income taxes 239-451-6008 or of income tax that would have Deferred distribution un- him at Unlike regular IRAs, upon conversion, the tax payment otherwise been deferred without til death. [email protected]. distributions from Roth IRAs can

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GIFTS TO FAMILY | ASSET PROTECTION How to plan for, preserve your legacy Wealth Advisors and a partner with BCG Legacy Advisors. BY RAY LAMPNER certain degree. Through strategic tax BCG Legacy Advisors, says, “It’s According to statistics, there is a AND DOUG MATHEY planning in conjunction with asset much more complicated than adding 70% chance that a company will tran- protection strategies, wealth can ften, looming retirement up account balances to see if clients sition ownership in the next 10-15 be preserved and protected for the can feel like standing on the have reached a magic number. To years. If you are a key stakeholder, or benefit of heirs and possibly even a Ohigh-dive board at the pool. begin with, there are many factors business owner, your concern for this charitable legacy if you desire. You’ve just exerted everything you that may be trickier to quantify.” circumstance will be even greater. have climbing the ladder to reach The top three legacy planning Yet, when the majority of business Preserving your legacy the board. Your knees wobble a bit factors from our clients are: owners are asked, only about 14% LAMPNER MATHEY A vast majority of clients are on your approach to the edge. When n How much is my business worth? have a succession plan in place. concerned first and foremost with you look down, your destination n How much will I have after preserving the wealth they accu- seems far away and indefinite. You taxes? objectives. Intricate business valu- mulate so that their families may have to time it right so that you feel n Will I have enough to take ations, strategies and diversified Protecting your wealth benefit. Ensuring that there are ready, and when you finally make care of my family and myself? planning are going to be critical to … after taxes enough assets to reach personal your move, you need to be positioned Defining a legacy is as simple as a legacy’s success. When the tax man cometh, it and financial goals is the critical correctly when you hit the water — stating what you envision for the can be quite a hit on your legacy first step in retirement planning. or else, you will feel the strain. And, long term. How you foresee your Understanding the plan. For many, income taxes are But don’t undermine the assess- right before you leap, you take your retirement, things you wish your the single greatest expenditure on ment of business and personal last, big breath of fresh air … hoping family to have, and the ability to value of your business an individual’s personal income risks. You will need to implement it won’t be too long before you can plan for potential health care prob- The business valuation in legacy statement. strategies to avoid these risks. An breathe freely once more. lems or other unforeseen emergen- planning is not as easy as giving It’s very important to enlist a advisor that has experience in the So what will happen when you cies that won’t burden anyone. you a number based on assets. The trusted advisor that can tap your diversified steps of legacy planning resurface? Did you time it right? Achieving a desired level of a worth of your business is depen- assets in the right order to mini- with businesses can help execute Timing and positioning are criti- legacy plan is more complex. The dent upon knowing exactly how, mize your tax bill. strategies that can secure a safe cal to success in legacy planning company’s objectives, strategy and when and to whom ownership A good advisor will be able to: financial retirement. and retirement. capabilities must be measured and will be transferred. This is the So, the cautionary tale has always Doug Mathey, president of BCG aligned with the business owner’s simplest way to maximize returns. n Manage investments to maxi- been to look before you leap. Creating a business legacy, as mize after-tax returns. Time is ticking. The water is well as planning for your personal n Work within a multi-dimen- warm. It’s never too early to create a legacy, is a complex, yet critical sional tax system and coordinate a legacy plan so that one day you will task. strategy to contemplate for regular be able to dive head-first into retire- “The majority of business owners tax, alternative minimum. ment knowing that everything is put it off thinking that they have n Create a strategy for fund with- going to be alright. How to protect time. But it’s important to create drawal to keep taxes low, projecting a long-term plan and incorporate income and bracket management, your legacy plan into part of your and use investment vehicles that Ray Lampner is a Partner with BCG overall business strategy. Position- minimize income taxes (i.e., tax- Legacy Advisors. Contact him at inherited IRAs ing your business and making the managed mutual funds). 330-572-8014 or Raymond.lampner@ BY SUSAN RACEY AND PETER IGEL right moves now can drastically While investors can’t control the bcgcompany.com. Doug Mathey is increase the value of your business direction and returns of the mar- President of BCG Wealth Advisors. he U.S. Supreme Court’s and legacy in the long term,” ket, they should be able to control Contact him at 330-572-8050 or Doug. recent decision in Clark v. states Ray Lampner, partner with for risk, expenses and taxes to a [email protected]. TRameker has given individuals with IRAs a new reason to

consider the use of trusts as IRA ©

beneficiaries. The decision made 2014. Oswald Companies. All rights reserved. OC2014_AD003 clear that inherited IRAs do not RACEY IGEL receive bankruptcy protection under federal law. many debtors will look to state law for protection. Fortunately for Federal exemption debtors, Ohio offers protection for The Bankruptcy Code allows inherited IRAs. debtors to retain certain property Still, reliance on state exemp- to help start over. Most retirement tions for planning purposes is not assets, including traditional IRAs, always dependable in our mobile Protecting Your Company. are protected. society. For example, if a person Until recently, it was unclear funding an IRA lived in Ohio but whether an IRA inherited by a one or more of the beneficiaries beneficiary would be protected. The reside in another state that does Court concluded that bankruptcy not protect inherited IRAs, the IRA law does not exempt inherited would not be protected in bank- Preserving Your Vision. IRAs. ruptcy. In Clark v. Rameker, a woman established a traditional IRA. Upon her death, her daughter in- Trust alternative herited the IRA. When the daugh- Instead of relying on Ohio’s ter later filed for bankruptcy, she exemption, IRA owners may attempted to exempt the IRA. The protect the IRA by naming a trust court denied the exemption due as the beneficiary. In the event of to differences between traditional the beneficiary’s bankruptcy, the IRAs, which are funded for retire- trust can protect the inherited IRA ment, and inherited IRAs, which regardless of the individual’s state are received as a result of the IRA of residence. owner’s death. Also, the same trust can protect These differences persuaded the the IRA against other creditors court that inherited IRAs should outside of bankruptcy and in the Estate planning, life insurance and business solutions. not receive the bankruptcy protec- event of a divorce. tion intended for assets set aside www.oswaldcompanies.com for retirement. Susan Racey is a Partner of the Tucker Ellis Estates, Trusts & Probate Group. Contact her State exemption at 216-696-3651 or susan.racey Because bankrupt debtors may @tuckerellis.com. Peter Igel is a opt to apply state exemptions Partner in the Tax Group. Contact Jeffrey Wasserman | 216.367.5990 | [email protected] instead of the federal exemption him at 216-696-5084 or addressed in Clark v. Rameker, [email protected].

Crain’s Cleveland Business Custom Publishing 129(0%(5 www.ClevelandFoundation.org/Purpose $'9(57,6(0(17 Turning Passion Into Purpose WITH THE CLEVELAND FOUNDATION

ROBERT P. MADISON Establishing a legacy of giving today and tomorrow Giving is a deeply personal decision he established with his late wife, WKHVWDWHRI 2KLR,WZDV/HDWULFH inspired by a lifetime of experi- Leatrice, to help African-American working as a school teacher, who pro- ences, passions and motivation to DUFKLWHFWXUHVWXGHQWVÀQDQFHWKHLU YLGHGWKHVHHGPRQH\IRUWKHÀUP help solve community problems. postsecondary education. For one iconic Cleveland native, The company Madison founded has giving to present priorities and “My concern is helping a person SDUWLFLSDWHGLQDQXPEHURIGHÀQ- investing in the future has been a who wants to study architecture, but ing Cleveland projects, including the purposeful and rewarding blend of may not have the money to attend a Rock and Roll Hall of Fame and philanthropy. XQLYHUVLW\WRHQWHUWKLVÀHOGLIKHRU Museum, Quicken Loans Arena, she chooses,” Madison said. “Being FirstEnergy Stadium and the Great Through careful design and exem- VHOHFWHGLVDOVRDEHQHÀWWRVWXGHQWV· Lakes Science Center, as well as of- plary generosity, Robert P. Madison, egos: They can see that someone ÀFHEXLOGLQJVDQGFROOHJHFDPSXV founder of the Cleveland architec- believes in them.” SURMHFWV0RUHUHFHQWO\WKHÀUPGH- WXUDOÀUP5REHUW30DGLVRQ,QWHU- signed the stations on the Regional national, aims to help generations For most of his early life, Madison Transit Authority HealthLine and RI &OHYHODQGHUVDQGWKXVGHÀQH found success by believing in him- worked on the Cleveland Conven- his legacy. self. He grew up in Cleveland and tion Center and the Global Center VWXGLHGEULHÁ\DW+RZDUG8QLYHUVL- IRU+HDOWK,QQRYDWLRQ ´,KDYHDOZD\VEHHQFRQFHUQHGIRU ty before leaving to serve in World those who do not have the same :DU ,, DQG HDUQLQJ WKH 3XUSOH “Success in a profession is one opportunities as others,” Madison Heart, three combat ribbons and thing, but when you couple that said. “All of our lives are checkered the combat infantry badge. success with the ability to be help- ZLWKWULDOV DQG WULEXODWLRQV EXW, ful to others, it becomes far more believe that we have the ability to 8SRQKLVUHWXUQKHUHFHLYHGDEDFK- meaningful,” Madison said. overcome them and see beyond.” elor’s degree from Western Reserve 8QLYHUVLW\LQ²WKHÀUVW$IUL- 7RGDWHVWXGHQWVKDYHEHQHÀWHG Robert P. Madison: architect, pioneer and philanthropist. The company Madison founded has Madison selected the Cleveland can-American student to graduate from his scholarship fund, which participated in the development of many Cleveland landmarks including the Rock and Roll Hall of Fame and Museum and Great Lakes Science Center, but his philanthropic partnership Foundation as his philanthropic from the School of Architecture. KDVDZDUGHGVFKRODUVKLSVRYHU with the Cleveland Foundation will leave its mark in the next century and beyond. partner more than a decade ago, and WKHODVW\HDUV he has worked with the foundation’s He went on to attain a Master of will be carried out to the full extent.” career, and we are honored to have Advancement team of professionals $UFKLWHFWXUHIURPWKH+DUYDUG8QL- Madison is already part of Cleve- been his partner on this journey.” to ensure that his passion for archi- versity Graduate School of Design, land history, but he knows that one )RUWKHLUVHOÁHVVGRQDWLRQVWRWKH WHFWXUH DQG VRFLDO MXVWLFH ÀQGV D where he studied under Bauhaus of his biggest contributions to the FRPPXQLW\ ² SDVW SUHVHQW DQG Madison also gives his time, serving philanthropic outlet close to home. IRXQGHU:DOWHU*URSLXV,QKH community is yet to come. Madi- IXWXUH²WKH&OHYHODQG)RXQGDWLRQ the community as an honorary co- went abroad as a Fulbright Scholar son is securing his legacy through a presented the Madisons with the chair of the Cleveland Foundation’s “The people there are wonderful to the Paris École des Beaux-Arts. planned estate gift with the Cleve- Frederick Harris Goff Philanthropic African-American Philanthropy and sensitive, and they understand land Foundation that will leave Service Award, named for the orga- Committee. the intention of those who want to :KHQKHUHWXUQHGWRWKH8QLWHG a lasting impact, benefiting the QL]DWLRQ·VIRXQGHULQ participate in the foundation,” said States, however, he experienced a causes he cares about most after ´%\JLYLQJLQP\OLIHWLPH,·YHEHHQ Madison, who jokes that he is just much different set of “trials and he passes away. “Bob Madison has generously em- able to see and enjoy how the con- nine years younger than the Cleve- WULEXODWLRQVµ,QWKHFRORURI braced lifetime giving and planned tributions are helping the commu- land Foundation, which is celebrat- his skin precluded him from secur- ´,WZDVLPSRUWDQWIRUPHWRSODQ JLYLQJµVDLG.D\H5LGROÀVHQLRU QLW\µKHVDLG´,IHHOUHVSRQVLEOH ing its centennial year. ing job interviews and bank loans, now so that others won’t have to vice president for Advancement to help build a better society now so Madison set out on his own and GRLWDIWHU,DPJRQHµKHVDLG´, at the Cleveland Foundation. “His ZKLOH,DPDOLYHDQGWRFRQWLQXH Madison’s primary philanthropy EHFDPHWKHÀUVW$IULFDQ$PHULFDQ feel very safe and secure with the philanthropy has been an encore WKDWDIWHU,DPJRQHµ has been a scholarship fund that WRUHJLVWHUDQDUFKLWHFWXUDOÀUPLQ IRXQGDWLRQDQG,NQRZP\ZLVKHV to his groundbreaking architectural

To learn more about giving through the Cleveland Foundation, please call 877-554-5054.

*52:,1*:,7+385326()25<($56 (VWDEOLVKHGLQDVWKHZRUOG·VÀUVWFRPPXQLW\IRXQGDWLRQWKH )RUPRUHLQIRUPDWLRQRQWKH&OHYHODQG)RXQGDWLRQSOHDVH &OHYHODQG)RXQGDWLRQFHOHEUDWHVDFHQWXU\RIWXUQLQJSDVVLRQLQWR visit ZZZ&OHYHODQG)RXQGDWLRQRUJ3XUSRVH DQGIROORZXVDW SXUSRVHWKLV\HDU7KHIRXQGDWLRQLV2KLR·VODUJHVWJUDQWPDNHU )DFHERRNFRP&OHYHODQG)RXQGDWLRQ or#&OHYH)RXQGDWLRQ DQGRQHRIWKHODUJHVWFRPPXQLW\IRXQGDWLRQVLQWKHFRXQWU\ZLWK on Twitter. DVVHWVRIELOOLRQDQGJUDQWVRIPLOOLRQ E-10 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

GIFTS TO FAMILY | ASSET PROTECTION Family philanthropy preserves your values for the next generation

table activities. Older children BY PATRICIA FRIES and young adults enjoy impacting You may want to mart financial and estate social causes through social media. encourage and planning ensures that your As time goes on, you may want S assets will be handled and to encourage and enhance the enhance the impact protected in accordance impact of financial support with your wishes. But how from the younger genera- of financial support SERVING OLDER ADULTS AND do you preserve and grow tion by offering to match from the younger the family values that you their gifts with gifts of THEIR CAREGIVERS THROUGH: hold so dear? How can you your own. Involving the generation. next generation in philan- z home care z mental health services z social work ensure that future generations of your family will thropy exposes them to the the family philanthropy. z adult day services z partial hospitalization continue to be guided by amazing feeling of helping Donor-advised funds, private others and making a differ- foundations, supporting organi- z meals for homebound seniors z congregate meals these values? One of the best ways to ence in the world. This is zations or perpetual trusts are z low-income housing z advocacy pass on your values is to FRIES the power of philanthropy alternative vehicles for support- to transform lives. Family ing charitable causes. Contact z education and training engage in philanthropy as a family. At charitable organiza- philanthropy can also provide a fo- your attorney to discuss these z social and recreational programming tions, development professionals rum for talking about money man- options. These giving vehicles are available to help achieve your agement, which is not considered vary in complexity and flexibility philanthropic goals and suggest nearly enough in today’s world. and your advisors can help ensure To learn how your charitable gift various creative ways to involve Strategic giving vehicles can be alignment with your financial and can impact our mission, your family. an important part of your family philanthropic goals. Family philanthropy is an op- philanthropy and provide income, Engaging with your family in call Institutional Advancement at 216.791.8000 portunity to live and breathe your gift and estate tax benefits. Estab- philanthropy helps preserve your family values while establishing a lishing a current use or endowed values for the next generation. legacy for the next generation. It fund at a particular charitable It all begins with a conversation. www.benrose.org/donate starts with a conversation about organization is one of the most Talk with your family today. what causes are important to you straightforward options for family and what this has meant for your philanthropy. Many charitable Patricia Fries, Esq., MBA, is family. Engaging the younger gen- organizations provide engagement the Director of Gift Planning at eration can be as simple as holiday opportunities for families and University Hospitals. Contact her gift shopping for sick children or bring the family together to learn at 216-844-0430 or Patricia.Fries volunteering as a family at chari- more about the use and impact of @UHhospitals.org.

It’s Your Legacy, Our Specialty. Private foundation considerations Innovative life insurance solutions for affluent BY MARY EILEEN VITALE solely be internal? This may change over time. Continuation is families & business owners. AND MICHAEL G. DUFFY generally a concern of founders. onsidering starting a private Early on, the private foundation Access to exclusive proprietary life insurance foundation? Establishing one is typically run by the founder’s family. Who will be involved products that are generally lower in cost than Callows the most control of your philanthropic assets, versus after their passing? Planning and retail products. donating to a supporting organiza- thought are important to this question. Early involvement of tion or a donor advised fund. The VITALE DUFFY choice will be influenced by future new family members is important in order to allow those that follow Proud to serve Northeast family involvement and cost. Once How Financial management. to be the decision makers. To keep instituted, administration and will the assets be invested and Ohio and the long-term family involved as time passes, continuation are key. distributed? These functions can allowing for limited and/or higher needs of our clients and Management can be by either be handled by hired professionals time commitment at different professionals or family members, or family members, depending on the advisory community. periods may be a solution. Partici- or a combination. Many begin with skill and interest. Private foun- pating individuals may be able to the founders doing all. They may dations have minimum distribu- donate more or less time as their also involve their children and tion requirements based on asset situations permit. The foundation grandchildren. Professionals can values each year per the IRS Tax should allow for this. Foundation be hired; however, this can be cost- Code. Additionally, there is an bylaws are important to provide ly. Professionals are recommended excise tax ranging from 1% to 2% guidance to future generations. to manage the foundation’s assets, of the net investment income. Both LIFE INSURANCE ACQUISITIONS • LIFE INSURANCE AUDITS • BUSINESS INSURANCE STRATEGIES legal, tax and accounting issues. are recorded and tested on the an- ǁǁǁ͘ĐŽƌŶĞƌƐƚŽŶĞĐŽŶƐƵůƟŶŐŐƌŽƵƉ͘ŶĞƚ At the outset, the founders need nual tax filing. Mary Eileen Vitale, CPA, CFP, AEP to determine its focus. These can 3421 Ridgewood Road, Suite 225 308 N. 21st Street, Suite 650 is Principal with HW&Co. Contact be diverse or narrow, providing Fairlawn, OH 44333 St. Louis, MO 63103 Administrative management. her at 216-378-7210 or vitale@ financial assistance alone or broad Who will make decisions? What Phone (330) 665-2376 Phone (314) 667-4978 hwco.com. Michael G. Duffy, CPA, support. processes will be used? Will the is Senior Tax Manager. Contact ^ĞĐƵƌŝƟĞƐŽīĞƌĞĚƚŚƌŽƵŐŚD,ŽůĚŝŶŐƐ^ĞĐƵƌŝƟĞƐ͕/ŶĐ͘ZĞŐŝƐƚĞƌĞĚƌŽŬĞƌͬĞĂůĞƌ͕DĞŵďĞƌ&/EZͬ^/W͘ Two critical areas include financial foundation accept grant applica- ŽƌŶĞƌƐƚŽŶĞŽŶƐƵůƟŶŐ'ƌŽƵƉ͕>>ŝƐŝŶĚĞƉĞŶĚĞŶƚůǇŽǁŶĞĚĂŶĚŽƉĞƌĂƚĞĚ͘ him at 216-378-7291 or duffy@ and administrative management. tions or will funding decisions hwco.com.

Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-11

CHARITABLE GIVING Supporting organizations: family philanthropy at its best

BY ANN GARSON or trustees into a particular field Charitable gifts offer tax benefits and invaluable impact of interest or about a particular supporting organization, minimum distribution requirement grantee. Causes may be researched often called a supporting of 5% of the investment assets as and proposals may be anonymously A foundation, is a wonderful there are for private foundations. solicited with conditions. Best due philanthropic vehicle that com- For purposes of deductibility, gifts diligence practices are used with bines thoughtful philanthropic to the supporting foundation are all proposed grantees. The founda- planning with treated more favorably than those tion manager prepares all of the family engage- to the private foundation. minutes and agendas for meetings ment, taking Because a private foundation and keeps track of grant payments, into account is an independent entity, it reporting, and records. financial objec- must engage its own attorneys A family establishing a support- tives and donor and investment managers, tax ing foundation may focus all of values. Many specialists to make IRS and state their attention on the change they families choose filings and administrators to keep want to make in the world without the supporting grant, payment, and corporate bearing the burden of day-to-day foundation as records. operational responsibilities. GARSON the preferred Someone must conduct due A supporting foundation provides vehicle for their diligence on grantees. The family a vehicle for financial and tax plan- participatory philanthropy. Par- that establishes a supporting foun- ning as well as a meaningful vehicle ticipatory philanthropy vehicles dation does not have to address for family members to actively en- are those that allow for engage- any of these concerns because the gage with each other in a collabora- ment of donors with each other Federation assumes responsibility tive philanthropic enterprise. in grantmaking. Other examples for all of these functions. foundation manager may facilitate actualization of those values of participatory vehicles are donor Another benefit that a support- these conversations and help a through the supporting founda- Ann Garson is Assistant Managing advised funds and private founda- ing foundation has compared to a family to articulate philanthropic tion’s grantmaking. Director of Funds and Foundations tions. private foundation is the participa- goals based on shared values. Additionally, the foundation for the Jewish Federation of Cleve- The supporting foundation tion of the non-family appointed Then, the foundation manager manager may be responsive to land. Contact her at 216-593-2814 may be the recipient of lifetime trustees. The family-appointed may help the family tackle the requests for research from the family or [email protected]. and testamentary charitable gifts trustees and the non-family ap- designed to achieve tax reduction pointed trustees work together. objectives. The family may then The non-family appointed trustees work together across generations are not strangers to the family and with non-family trustees to support they are all very involved in the causes that benefit the community community. by making grants consistent with These trustees contribute to the the family’s values and charitable family discussion by sharing in- interests. spiration, experience, and insights A supporting foundation is a about philanthropy and grantees. charitable organization that quali- They validate the impact that the fies as a public charity because of family is having with grantmaking its control by a public charity. It as well as reinforce and encourage is administered by its own board the transfer of philanthropic values of trustees with a majority of the across generations where there is trustees appointed by the control- a multigenerational board. This ling public charity and a minority kind of multigenerational involve- of the trustees, generally family ment is a fulfilling family endeavor members, appointed by the where each member honors the family. other and a shared vision can be In some cases, only individuals made a reality. from the older generation serve as family-appointed trustees. In other cases, there may be a multigenera- Foundation manager tional board. The Jewish Federa- assistance tion of Cleveland has 50 affiliated Each supporting foundation has supporting foundations, which a staff member who acts as the collectively made grants last year foundation manager and whose of more than $90 million. Trust- focus is on facilitating the family’s ees meet at least once per year to philanthropy. The foundation man- decide on grantmaking and invest- ager adds value in several ways. ment matters, as well as other The foundation manager helps the issues of policy and operations. family develop a mission statement for the supporting foundation, Supporting foundation reflecting the family’s values and history. differences Families of wealth often have Be conﬁdent with your team. The supporting foundation is dif- not been offered an emotional ferent from a private foundation in “safe” space or meaningful process several ways. in which to tackle the complex There are no excise taxes on family dynamics that emerge in The Cleveland law ﬁrm with the most investment income and there is no the context of grantmaking. The Trusts and Estates and Tax lawyers listed in © Estate Planning The Best Lawyers in America . Can I protect my assets without What will my kids paying premiums have le if I pay every year? nursing home? Protection

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Should I tell my kids what Business Protection I own?

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Crain’s Cleveland Business Custom Publishing E-12 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

TRUSTS Weigh all your options when selecting a trustee as your trustee sees fit is a lot of BY AARON REBER responsibility and can create chal- Selecting a trustee aming a trustee to be respon- lenges especially when there are is an important sible for protecting your legacy multiple beneficiaries. Complex assets, like closely held business in- decision that could Ndemands thoughtful consider- Minimizing taxes through ation and an open-minded examina- terests or real estate, may require significantly impact tion of available options. Should a trustee with specialized business you choose an individual trustee and financial skills. your family and discretionary trust distributions or corporate trustee as part of your When considering an individual estate plan. wealth transfer strategy? What to serve as trustee, such as a fam- BY JOSEPH VERCIGLIO for 2014). As a practical matter, questions should you ask when ily member or trusted advisor, ask individual trustee. most trusts will have adjusted seeking the ideal candidate? Where yourself essential questions: Does Keep in mind that selecting a discretionary distribution gross income comprised entirely do you begin? he or she have the time, expertise, corporate trustee does not exclude of income (and, potentially, of net investment income, and Before you start, recognize that experience and desire to take on this your family from being involved: A capital gains) from a non- thus all undistributed income your situation is unique. What responsibility? Will changes in the n You can appoint a family grantor irrevocable trust to one or (including capital gains) in excess proved a successful strat- trustee’s life, such as retire- member as co-trustee to serve with more of its beneficiaries of the threshold generally egy for your neighbor may ment or a move to another a corporate trustee. can minimize taxes — spe- would be subject to the not be a suitable approach location, affect his or her n You can give your beneficiaries cifically the 3.8% Medicare surtax. based on your needs. Se- ability to continue serving the power to remove and replace surtax on net investment For individuals, the lecting a trustee is an im- in this capacity? Will he or the corporate trustee. income, and the tax on applicable threshold portant decision that could she be comfortable putting n You can name a family member long-term capital gains and is based on modified significantly impact your personal assets at risk for as a trust advisor for the trust, to be qualified dividends. adjusted gross income, family and estate plan, so decisions made regarding consulted on investment decisions, A non-grantor irrevo- which includes an do your research to make the trust? distributions to beneficiaries, or both. cable trust reaches the individual’s salary, and If you have reservations Whatever path is ultimately threshold levels of income is $250,000 for a mar- an informed choice. REBER VERCIGLIO Take the time to grasp about naming an indi- taken, many people find that that result in the imposi- ried couple filing jointly, what you will be asking vidual as trustee, you may consulting an experienced trust tion of the surtax and the $200,000 for a single filer, your trustee to do. Specific respon- want to explore naming a corporate advisor puts the selection process highest tax rate for long-term or $125,000 for a married person sibilities include taking custody of trustee. Corporate trustees have on solid footing. capital gains and qualified divi- filing separately. and safeguarding assets, making extensive experience handling I invite you to visit with a FirstMerit dends at much lower levels than With respect to the tax on long- appropriate investment deci- ordinary and complex fiduciary PrivateBank trust advisor to learn individuals. The trustee of such term capital gains and qualified sions, understanding and react- tasks. Knowing that many years of how we can provide you with an ob- a trust should consider making dividends, the maximum tax rate ing to changes in applicable laws, experience have been drawn on to jective perspective on your circum- discretionary distributions to the of 20% applies to a trust’s long- making discretionary distribution develop consistent approaches to stances and help you select a trustee trust’s beneficiaries to carry out term capital gains and qualified decisions, communicating with ben- decision-making may provide you that will achieve the objectives of the trust income (and, potentially, dividends when a trust’s taxable eficiaries, preparing trust account- a certain level of comfort. Families your legacy plan. capital gains) to them (which such income (which includes capital ings, and handling tax matters. can also benefit from having the beneficiaries would report on their gains) exceeds $12,150 (for 2014). The complexity of your plan and same corporate trustee provide un- Aaron Reber is Head of Trust, personal income tax returns) if Whereas, for individuals, in 2014 assets also factor into what you are interrupted service for successive Senior Vice President for FirstMerit the higher individual thresholds the maximum tax rate of 20% asking your trustee to do. Absolute generations, eliminating mortality PrivateBank. Contact him at would reduce the overall surtax applies when an individual has discretion to make distributions issues that come with opting for an [email protected]. and tax on long-term capital more than $406,750 of taxable gains and qualified dividends. An income or a married couple filing overarching consideration for the jointly has more than $457,600 of trustee is that any such distribu- taxable income. tion must be consistent with the Trustees should, therefore, terms of the trust. consider the potential tax savings For such a trust, the surtax is associated with permissible dis- imposed on the lesser of (i) undis- cretionary distributions of income tributed net investment income, (and, possibly, capital gains) to the which includes capital gains, and trust’s beneficiaries. (ii) the excess of adjusted gross income over the applicable thresh- Joseph Verciglio is a Partner with old (i.e., the amount at which BakerHostetler. Contact him at the highest trust/estate income 216-861-7713 or jverciglio@ bracket begins, which is $12,150 bakerlaw.com. LEADING THE WAY TO A HEALTHIER COMMUNITY ONE GIFT AT A TIME

Join all of those who are helping MetroHealth transform its campus and the health of the community. Visit metrohealth.org/foundation or call 216-778-5004.

The MetroHealth Foundation, 2500 MetroHealth Drive, Cleveland, OH 44109

Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-13

TRUSTS You’re the named trustee – now what? tion, and a listing of trust assets delegate his duties, as long as he adding an experienced advisor to New responsibility and their respective market values. exercises reasonable care, skill your team can help manage the Investment Duties: While Ohio and caution in: 1) selecting an complexities that may arise along requires careful law gives a trustee broad latitude agent to manage the trust; 2) the way. concerning investments, it also establishing the scope and terms consideration of requires prudent diversification in of the delegation; and 3) peri- Andrew Whitehair, CPA/PFS, most cases. A trustee must exercise odically reviewing the agent’s is Director, Tax at Cohen & Co. several factors reasonable care, skill and caution performance. Contact him at 216-774-1121 or when managing the trust assets, The above list merely scratches WHITEHAIR LAUBACHER [email protected]. Don and must consider its purposes, the surface of a trustee’s role. Laubacher, CFP, CPA, is Executive BY ANDY WHITEHAIR terms and distribution require- Many feel they can, or should, AND DON LAUBACHER Vice President, Wealth Planning liabilities, receipts and disburse- ments. take on the responsibilities by for Sequoia Financial Group. ments — including the source and Delegation of Duties: Ohio themselves. While it’s certainly Contact him at 330-225-2130 or amount of the trustee’s compensa- law provides that a trustee may possible in some situations, “My brother passed away a [email protected]. few weeks ago. He had created three trusts —one for each of his young adult children — and named me as his successor trustee. I know a bit about investing and taxes, but what are my duties and responsibilities as trustee? Can I delegate some of my tasks?”

t’s common for newly tapped trustees, many of whom have I little experience in trust matters, to feel an overwhelming sense of anxiety regarding the uncer- tainty of their new role. And right- fully so, since there are potential risks and liabilities that must be handled appropriately to protect both themselves and the trust. The good news for new trustees? You’re not alone. Below are some initial considerations to help you get started.

Basic Understanding: Begin with the understanding that a trustee’s duties are to administer the trust in good faith, pursuant to the terms and purposes of the trust, and according to applicable state law. Duty of Loyalty: The trustee must manage the trust solely in the interests of the beneficiaries and remain impartial between each. This can become complicated when there are multiple beneficiaries, mixed marriages and feuding family members. Legacy Recordkeeping Duties: Trustees often fall short in this area. Proper * recordkeeping means that: 1) William trust assets are not commingled with the trustee’s assets; 2) benefi- Family is a top priority for us. Which is why we want to know that the ciary requests for information are decisions we make now will ensure a bright future for us, our children promptly responded to; 3) trust tax returns are accurate and timely; and our grandchildren. Our FirstMerit Client Advisor understands our and 4) reports to beneficiaries are aspirations and helped us develop a long-term investment plan. He also provided at least annually and include a report of trust property, helps us manage our day-to-day banking needs so we can focus on what’s important. We have peace of mind knowing our legacy will live on.

Though related entities, Sequoia Financial Group, LLC and its affiliates, and Cohen & Company, Ltd. are separate companies with common, but not identical ownership. Investment advisory services offered through Sequoia Financial Advisors, TO LEARN MORE ABOUT LLC, an SEC Registered Investment Advi- sor. Certain third–party money management FIRSTMERIT PRIVATEBANK, CONTACT: offered through ValMark Advisers. Inc., an Tom Anderson, Senior Vice President, SEC Registered Investment Advisor. Secu- at 216-694-5678 or tom.anderson@firstmerit.com. rities offered through ValMark Securities, Inc. Member FINRA, SIPC. 3500 Embassy Parkway, Akron, OH 44333, 330-375-9480. Follow the latest market trends Certain insurance products offered though @firstmerit_mkt Sequoia Financial Insurance Agency, LLC. Sequoia Financial Group, LLC and related *William reflects a composite of clients with whom we’ve worked; he does not represent any one person. entities are separate entities from ValMark Securities, Inc. and ValMark Advisers, Inc. Non-deposit trust products are not insured by the FDIC; are not deposits or obligations of FirstMerit Bank, N.A, or any of its affiliates; are not Member FDIC Cohen & Company, Ltd and related entities guaranteed by FirstMerit Bank, N.A or any of its affiliates; and are subject to investment risk, including possible loss of principal invested. 2798_FM14 are separate entities from ValMark Securi- ties, Inc. and ValMark Advisers, Inc. Crain’s Cleveland Business Custom Publishing E-14 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

TRUSTS Is AB Trust planning a notion of the past? BY DANA DECAPITE Trust, and incorporating the ability accomplish an OBIT involves the use to achieve a second step-up in tax of a Delaware Tax Trap technique, rior to the American Tax Payer basis upon the death of the surviving under which a limited power of ap- Relief Act of 2012 (ATRA), the spouse. An OBIT is similar to an AB pointment is granted to the surviving P use of a Marital Trust (Trust A) Trust in that the surviving spouse’s spouse. The surviving spouse can and a Credit Shelter Trust (Trust B), access to the assets is limited — how- then appoint appreciated assets into commonly referred to collectively as ever, these limitations exist for asset an additional trust that allows for an an “AB Trust” was considered stan- protection purposes instead of estate exercisable general power of appoint- dard procedure in estate planning tax planning purposes. ment. This technique creates the for wealthy married couples. Based on current tax law, an same tax advantage wherein appreci- ATRA established changes that OBIT functions as follows: ated assets are stepped up, depreci- brought a much-desired federal estate Upon the death of the first spouse, ated assets are not stepped down and tax permanence by setting $5.34 million in assets (less asset protection is achieved. How- the amount of any unified ever, there are a number of complex The non-tax the unified credit amount at $5 million indexed for infla- credit used during lifetime) planning considerations in determin- tion ($5.34 million in 2014) is directed to the Credit ing which technique is best, such as: and introduced the concept Shelter Trust (Trust B) for gift tax considerations, access by the of portability. Prior to the the benefit of the surviving powerholder’s estate creditors, ease of benefits of trusts concept of portability, if a spouse. Similar to an AB disclaiming/decanting and the hassle BY LINDA DELACOURT The planner should follow up that spouse’s unified credit was Trust, this amount will pass of future documentation and upkeep SUMMERS concept with many associated not used at death, the unified tax-free pursuant to the use upon the death of the first spouse. questions. For example, do you credit was lost. After porta- DECAPITE of the deceased spouse’s $5.34 Regardless of the drafting approach, n the past, the estate planning have minor children or any chil- bility, the surviving spouse million exemption. it is clear that the planning techniques discussion between attorney dren from a first marriage? Is there is able to use a deceased spouse’s un- In an OBIT, Trust B is have taken a dramatic shift since Iand client regarding the use a possibility that a child might get used exemption amount by electing carefully drafted to include a testa- the implementation of ATRA. While of trusts was often centered on divorced or declare bankruptcy? Is portability on the federal estate tax mentary general power to appoint the necessity for estate planning has the way a trust may be able to getting a large lump sum of money return. As a result of this decrease in appreciated trust assets, thereby not diminished, tax incentives have help save on estate taxes. How- in the best interests of your child, estate tax exposure, the use of an AB allowing for the appointed assets shifted clients from traditional estate ever, with the federal exemption or might that deter them from find- Trust has become much less useful in to be includable in the surviving tax planning to a new focus on income for estate taxes currently being ing their professional and economic tax planning, as a bypass trust is not spouse’s estate for federal estate tax planning. These techniques are $5,340,000 per person and the way on their own? What if your necessary to preserve the deceased tax purposes. The general power particularly attractive to high-income repeal of the Ohio estate tax, plan- surviving spouse remarries and, if spouse’s exemption amount. While of appointment is granted only if it taxpayers who wish to utilize strate- ners are often asked by clients “Do they do, would you care if your as- the AB Trust remains functional in will not cause the appreciated gies to minimize income tax liability I really need a trust?” The sets are available for that the estate planning arena, there are assets to incur estate tax liability. while also preserving asset protection answer generally is that new spouse and family? other forms of trust planning that can Upon the surviving spouse’s death, for beneficiaries. As a result, the tradi- while you may not need Generally few, if any, be used to achieve complex income this arrangement provides for an tional AB Trust has become less useful a trust to save on estate clients can answer no to tax planning strategies. additional step-up on assets that have in certain contexts, and complex trusts taxes, you might want a all of the questions raised appreciated in value from the date of similar to the OBIT are now being trust for a variety of other above. If he or she can, death of the first spouse to the date used to maximize income tax savings reasons. then trusts may not be OBIT as an option of death of the surviving spouse, and at death. A funded trust provides for them. If any of the The Optimal Basis Increase Trust prevents a step-down on assets that privacy and avoids the answers are yes, then the (OBIT) allows for income tax planning have decreased in value. Without the Dana DeCapite is an Associate in the probate process. A funded DELACOURT options of how a trust can strategies that are notably absent in OBIT provisions, a traditional AB firm’s Business Succession Planning/ trust streamlines asset SUMMERS assist them in their situa- the traditional AB Trust structure. Trust would only guarantee a step-up Wealth Management Practice Group. management and distribution should be explored. The OBIT takes a hybrid approach in basis upon the first spouse’s death. Contact her at 216-383-4443 or tions upon the incompe- A trust still might not by combining the benefits of an AB Another drafting approach used to [email protected]. tency and/or death of the creator of be the correct, or only, estate the trust and names a succession planning vehicle for that client, of trustees, presumably, ready to but at least the option should be serve. Most notably, however, is discussed and the planner and cli- that a funded trust allows you to ent can delve into the client’s own maintain control of your assets unique personal situation – instead while you are alive and dictate how of just discussing tax savings. they are to be used and for whom The non-tax benefits of trusts after your death. have always been there, they just Many times, when a planner were not in the spotlight as they asks a client what should happen are now. with their assets upon their death, the client replies that their assets Linda DelaCourt Summers is should be distributed to their counsel for Ulmer & Berne LLP. spouse, if there is one; otherwise, Contact her at 216-583-7212 or in equal shares to their children. [email protected] THE ART OF PROBLEM SOLVING

Providing creative legal solutions for tax & wealth matters

Your Personal CFO… Enriching your lifestyle, The Tax & Wealth Attorneys of Estate and Wealth Management Planning | legacy, and peace of mind. Business and Individual Taxation | Counseling and Succession Planning for Closely Owned Businesses |

Asset Protection Planning | Retirement Plan Contact Dan Gaugler or Jennifer R. Hallos, Robert S. Horbaly, Mark Weiskind for an introduction. Implementation and Compliance | Probate and Trust James A. Mackey, Lacie L. O’Daire, Administration | IRS and Tax Court Controversies (216) 573-7200 Jennifer A. Savage, Scott E. Swartz, fairwaywealth.com Gary A. Zwick Cleveland | 216.781.1212 | walterhav.com

Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-15

TRUSTS ARTS AND COLLECTIBLES Using charitable trusts A primer to the proper appraisal of art, collectibles BY LORIE HART an appraisal are for resale, charitable in your retirement planning donation and equitable distribution. for the value of the trust property, BY LINCOLN FINANCIAL ADVISORS/ transfer a small amount of income- o you or your clients own Values used could be resale, liquida- which the charity will eventually SAGEMARK CONSULTING producing investments or cash to be high value art or collect- tion or fair market value. receive (within tax law limits). invested. The trust could hold the Dibles? If so, then you have n The appraisal process itself im and Angela are land “rich” A CRT can be structured either land, paying them income from their probably been through the art is painless. The appraiser will and cash “poor.” They live as an annuity trust or a unitrust. If investments until Jim and Angela appraisal process. However, if you typically inspect the items where Jcomfortably on their profes- Angela chooses a charitable remain- are ready to retire. Then, the trustee or your clients are new to collecting they are located. The inspection sional incomes, but as they near der annuity trust (CRAT), she and could sell the appreciated land and or have just inherited a significant includes taking photographs and retirement age, they are looking Jim receive annual payments of a set invest in securities that would pro- piece of artwork, this process measurements and assessing for ways to supplement the income percentage of the trust’s initial fair duce income for their retirement. can be mystifying. Following the condition. Any receipts, expected from their retirement plans. market value (between 5% and 50%). If the investment income exceeds are the basics of appraising documentation and past The largest asset they own is a tract A charitable remainder unitrust the fixed percentage for their CRUT, artwork and collectibles. appraisals will assist the of land inherited from Angela’s (CRUT) would pay Jim and Angela the makeup provision would require n A personal property appraiser in determining parents, which has increased in an annual income based on the fair the trustee to pay the excess to Jim appraisal is a formal written value. It is important to value over the years, but provides no market value of the trust property, and Angela to compensate for the document that provides a remember that appraisers current income. revalued each year. Again, the earlier years of low income. value for an item based on are not authenticators and Angela could sell the land and percentage must be between 5% Complex legal requirements must research, past sales and a specialist may need to be invest the proceeds in income- and 50%. If the trust investments be met to secure many of a CRTs current market trends in HART consulted to determine the producing investments. But, a perform well, the income increases. benefits. So, you’ll want to consult the market where the item is typically authenticity of an item. substantial portion of the prop- Some prefer CRUTs because they with your advisor before deciding to sold. A formal appraisal is also written n Finally, be aware that personal erty’s appreciation would be lost to can provide a hedge against infla- use one and consider using an expe- according to the Uniform Standards property appraisers are not licensed. capital gains tax. tion and can accept additional gifts. rienced professional trustee (bank or of Professional Appraisal Practice A qualified appraiser is a member in A better strategy might be estab- CRUTs also limit the annual pay- charity) to administer your trust. (USPAP). This assures that your ap- good standing of one of the three U.S. lishing a charitable remainder trust ments to the trust’s income when praisal is written properly and meets appraisal societies — the Interna- (CRT), where Angela transfers the it is less than the fixed percentage For more information, contact IRS guidelines. tional Society of Appraisers, the land to an irrevocable trust cre- amount (a net-income CRUT or 216-765-7400. n The value used in an appraisal Appraisers Association of America and ated to provide lifetime payments NICRUT) and includes a “makeup” depends on the client’s needs. The the American Society of Appraisers. to her and Jim. At the death of the provision (a net-income makeup Securities offered through Lincoln Finan- most common value is for insurance Membership in these organizations surviving spouse, the trust property CRUT or NIMCRUT) requiring the cial Advisors Corp., a broker/dealer (member coverage. High value art and col- requires formal testing and education transfers to the charitable organiza- trustee to make higher payments SIPC). Investment advisory service through lectibles, including wine collections, along with USPAP compliance. tion of Angela’s choice. in years the trust income exceeds Lincoln Financial Advisors Corp. or Sagemark often require a special rider on a With a CRT, the trustee can sell the fixed percentage amount, to the Consulting, a division of Lincoln Financial Advisors Corp., a registered investment homeowner’s policy. An appraisal will Lorie Hart, ISA AM, is co-owner of the property and reinvest the pro- extent that payments in prior years advisor. Insurance offered through Lincoln be required to determine the replace- L&L Estate Liquidation & Appraisal were less than the fixed percentage. ceeds without paying any immediate affiliates and other fine companies. It is not ment cost value of the items. This Services, LLC in Solon. Contact tax on the gain and can claim a cur- With a CRUT, Angela could our position to offer legal or tax advice. CRN- value is usually the highest value an her at 216-470-7002 or rent income-tax charitable deduction transfer the land and Jim could 1028833-100614 item will have. Other reasons to have [email protected].

Marcia Wexberg CherylCheryl D’Amico James A. Singler Jean Hillman Fran MitMitchellchell Schaul Maureen Beaver 216.622.8858 216.622.8555 513.693.4875 216.622.8298 216.622.8351 216.622.8322 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

The attorneys of Calfee’s Estate and Succession Planning practice can help you make some of the most important decisions of your life. We provide experienced counsel for high net worth individuals and families:

• Sophisticated estate, gift and generation-skipping planning • Comprehensive estate and trust administration • Business succession planning strategies Calfee, Halter & Griswold LLP • Probate litigation • Asset protection planning, including the Ohio Legacy Trust

The Calfee Building 1405 East Sixth Street, Cleveland, Ohio 44114 Calfee.com

Crain’s Cleveland Business Custom Publishing E-16 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

ARTS AND COLLECTIBLES CHARITABLE GIVING How estate planning can help you reach philanthropic goals

BY STELLA DILIK By arranging a hat kind of donor are you? donation now, your One who wants to see W your assets put to good charity of choice use during the course of your life- To Sell or Not to Sell? time? Or one who wants to make benefits from your Art and collectibles in the estate planning process an impact with your estate? kindness immediately Leaving a legacy defined by and also after you houses are required to preserve charitable giving is an important BY SERENA HARRAGIN AND mum value by reaching the most valuations, which conform to life goal. An estate that is not prop- ALEX BUDDEN number of potential buyers glob- have passed away. Uniform Standards of Professional ally, to have it insured throughout erly structured can be stressful Appraisal Practice (USPAP), on the selling process, and to receive and expensive for beneficiaries. For ersonal collections of fine art, ate charitable income tax deduc- file for a minimum of seven years. the settlement within an agreed philanthropic individuals and their antiques and decorative art tion, eliminate long-term capital Another added bonus is that when time period, all of which are as- heirs, there are several unique P comprise a vitally important ways to leave a charitable legacy as gains tax on appreciated securities, it comes to deciding whether or sured when an auctioneer licensed but often overlooked asset in a remove assets from your estate, not to sell the advice of a by a state authority is engaged. part of an estate plan. client’s total asset makeup. pass assets to your grandchildren trusted, licensed auction- Just like the financial markets Planned gifts As the estate plan is free of estate taxes or use real eer is invaluable. for equities and fixed income provide creative formulated, an up-to-date estate or other tangible assets to The decision to sell is instruments, the selling of fine art and flexible strat- valuation of the collection create a stream of income for you predicated on a number of and collectibles requires detailed egies for donors is critical in identifying or your family. different circumstances, planning informed by trusted, to pursue both the correct fair market Through creative planned giving but most usually the death licensed professionals from the fine charitable and values, followed by a plan you can secure your own financial of the collector. However, art and collectibles auction indus- financial goals. for the eventual dispersal future as well as the charity’s fu- any change of circumstanc- try. Knowing the value of what you Estate planning of the collection either by ture of your choice. In fact planned es — the decision to down- or your client has and understand- is a tremendous bequest, donation or by gifts can provide the resources for HARRAGIN size, the desire to liquidate ing the market trends is critical in benefit to ben- sale. Valuations need to DILIK extraordinary opportunities and funds, the need to resolve planning how, where and when to eficiaries as well be updated at least every transformational giving. a dispute as to the disposition of sell. as to charitable five years to make sure they are as If you find yourself thinking an item or the whole collection, or organizations. Oftentimes, fees accurate as they can be. about your future a lot more than the desire to take advantage of an and taxes can be avoided with Using a reputable, licensed Serena Harragin is CEO of Gray’s you used to — along with the fu- upturn in market conditions — can some simple planning and many auction house for the initial valu- Auctioneers & Appraisers, LLC. ture of your children, your grand- lead to a desire to sell. There are people don’t realize the tremendous ation will ensure the accuracy of Contact her at 216-458-7695 or children and your favorite charity significant advantages to using a income tax benefits available now values assigned, together with a email serena@graysauctioneers. — then it’s time to assess your licensed and globally recognized against current income for their full explanation of current compa- com. Alex Budden is Director of personal budget and your long- auctioneer for the sale of a collec- future commitment to charity. rables, and will allow values to be Trusts & Estates. Contact him at term legacy goals to determine an tion, or even a single item. Namely By arranging a donation now, updated quickly with a minimum 216-458-7695 or appraisals appropriate amount for giving and to achieve the collection’s maxi- your charity of choice benefits of expenditure. Licensed auction @graysauctioneers.com. from your kindness immediately the estate plan that will fulfill your and also after you have passed wishes. away. Planned gifts can include Best of all, estate planning bequests, gifts of life insurance allows you to make a gift that is policies, donations of charitable likely far larger than you could gift annuities, charitable lead have anticipated with an outright Making a Difference in Students Lives trusts, charitable remainder trusts cash donation. and numerous other estate planning vehicles. Stella Dilik is Executive Director of Takes More Than Quality Education Some of these gifts provide Foundation and System Philan- lifetime income for you, a family thropy for the MetroHealth Sys- member or friend; some allow you tem. Contact her at 216-778-5004 to enjoy the benefits of an immedi- or [email protected].

Wealth Management and Estate Planning Group

Through meaningful client relationship, we provide comprehensive and strategic estate planning, business and tax services uniquely tailored to individuals, businesses and fiduciaries. With decades of combined experience, we counsel Through a unique partnership with OhioGuidestone, Stepstone clients in navigating current circumstances, accomplishing Academy students and families have immediate access to a full personal, business and charitable goals, optimizing wealth spectrum of treatment, skill building and prevention services that transfer against tax impact, and in anticipating and preparing for future circumstances. can meet the needs of the entire family. No wait list or being sent all around town – just high-quality education and support For more information, please contact our provided in one location, by caring and trustworthy professionals. Wealth Management and Estate Planning Group.

Thomas M. Turner, Esq. Sandra J. Brantley, Esq. Want to learn more? Contact Dana Ness at 440.263.2874 Julie A. Fischer, Esq. Julie E. Firestone, Esq.

or [email protected] to support us today! Cleveland Office ǀ North Point Tower ǀ 1001 Lakeside Ave., Suite 1400 ǀ Cleveland, Ohio 44114 Chagrin Office ǀ 100 Park Place, Suite 150 ǀ 527 East Washington Street ǀ Chagrin Falls, Ohio 44022 www.StepstoneAcademy.org p. 216.523.1500 f. 216.523.1705 w. mggmlpa.com

Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-17

CHARITABLE GIVING CUSTOM PUBLISHING SECTION Charitable giving strategies for women Issue date: Jan 19 | Ad close: Dec 4 | Materials due: Dec 18 Setting a target of investment Be prepared to be ACG CLEVELAND returns to give away each year inundated with is another successful strategy. CORPORATE GROWTH AND M&A myriad requests Women should determine The Association for Corporate Growth Cleveland chapter partners with Crain’s on a custom section BY ANNE-MARIE E. CONNORS what percentage falls within focusing on the latest trends in M&A. ccording to the Women’s CONNORS their comfort level. Philanthropy Institute A at Indiana University, of $10,000 per year,” Drake says, with which you are comfortable.” HAVE YOUR VOICE HEARD IN CRAIN’S! women in the Boomer generation “would you feel comfortable giving and older are significantly more away 50% or $5,000 to charities in Anne-Marie E. Connors is Vice Book an ad and submit an article! likely to give to charitable causes any given year? You will still have President of Development, Ben- than their male counterparts. $5,000 to reinvest in your portfolio jamin Rose Institute on Aging. For more information, contact Nicole Mastrangelo Fund-raisers know this and are and increase its value. The key is Contact her at 216-373-1608 or likely to reach out to women, deciding in advance the percentage [email protected]. at 216-771-5158 or [email protected]. especially women of means, as potential donors, volunteers and board members. Women can avoid being overwhelmed by solicitations and in- vitations by developing a strategy for charitable giving. Benjamin Rose Institute on Ag- ing Board Member Emily Drake, Partner with Fairport Asset Management, offers several tips for her peers. She suggests setting up criteria for charitable giving that par- allels personal priorities and values. Some things to consider include the mission of the organization, the percentage of funding that goes directly to the targeted population, transparency in the use of the funds, and clearly stated short- and long-term organizational goals. Women should set a strategy at the beginning of each year, she says. “How much will you give this year and to what types of organizations? You might think about giving more to fewer orga- Securing nizations, rather than many small gifts to different organizations. This will make you feel much better about the impact you are having to affect change in your Your Future. key areas of interest.” With a strategy in place, donors should evaluate the list of donations they have made in the past and develop a “quit list.” “As you Positioning your business and making the right moves review your gifts, what made you feel good and what did not?” Drake says. “Quit giving out of now can drastically increase the value of your business guilt and give because you care.” Having a clear strategy for charitable giving also makes it and legacy in the long term. easier to say no to well-meaning friends and colleagues who solicit donations for their causes. BCG Legacy Advisors - entrusted with futures for more than 25 years. “If an organization does not meet the profile you’ve developed, turn them down in a courteous way by t Intricate business valuations telling them quite simply what your priorities are,” Drake suggests. t Risk assessment and control After deciding which organizations or causes make the cut, women t Strategic tax minimization should consider how they want to maximize their giving potential. t Wealth protection Using highly appreciated stock or investments can prove to be a suc- t Diversi ed Succession and Legacy planning cessful strategy. A donor can achieve tax savings on these appreciated securities by not having to pay capital gains tax, while at the same time enabling a larger gift because it reflects the before-tax dollar amount. Setting a target of investment CARING PEOPLE. SHAPING FUTURES. returns to give away each year is another successful strategy. Women should determine what percentage falls within their comfort level. “For example, if your invest- bcgcompany.com ment portfolio is achieving a return Crain’s Cleveland Business Custom Publishing E-18 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

CHARITABLE GIVING Beyond the pledge Evaluating charities drive … leaving a using the Internet BY ALEX PETRUS BBB Wise Giving Alliance www.give.org ow can you make sure that Collects and distributes infor- the nonprofit charity you mation on nonprofit organizations meaningful legacy Hwant to support will use that solicit nationally or have your gift wisely and is a national or international Considerations involved in making well-run organization? program services. Here are a few things to appropriate planned giving decision consider, as well as Inter- BBB Wise Giving generation of tax-wise, financially net resources that may be Northeast Ohio BY MARY GRACE HERRINGTON savvy donors whose giving prac- certificate of deposits, real estate, helpful: www.bbb.org/ tices are based on business acumen vehicles, art and jewelry. Such What percentage of your cleveland lanned giving is simply gift will go directly to the finding the best method of as well as philanthropic concern. gifts may even provide tax savings. Collects and distributes The financial needs, interest, and n Name your favorite charitable programs and services of information on Northeast Pmaking a gift. The distinction the non-profit organiza- between planned gifts and expectations of the 75-year- organization as the beneficiary of PETRUS Ohio nonprofit organiza- old are not the same as your IRA or pension plan. tion? You should expect at tions that solicit charitable other giving is that most least 75% of their bud- charitable giving is income- those of the 45- or 50-year- n Buy a new life insurance support. If the nonprofit is old donors that are forming policy naming your favorite char- get to go toward programs and accredited by the BBB it receives oriented while planned services. The nonprofit charity giving is asset-oriented. the new donor prospect ity as the beneficiary. the BBB Accredited Charity Seal. pool. In a nutshell, donors n Name your favorite charity as should be upfront and transpar- Planned gifts can be ent in providing this percentage considered once-in-a- are looking for ease, choice, the beneficiary of an existing life Ohio Attorney General and expertise. insurance policy. for you. www.ohioattorneygeneral. lifetime gifts. Most often Does the nonprofit charity have planned gifts are made by A frequent “go-to” list n Remember deceased loved ones gov includes the following ways with memorial gifts to charities. an active and engaged board of All nonprofit organizations individuals who have given HERRINGTON directors overseeing its manage- regularly every year to to give a planned gift: n Encourage family members soliciting charitable support in Ohio n Prepare a will. With- and friends to leave gifts to chari- ment? are required to register and be in an organization’s annual Does the nonprofit charity have operating fund. The size of the an- out a will, you lose control of the ties in their wills. good standing with the Ohio Attor- possessions you worked a lifetime As with any significant financial a current independent audit with ney General’s Office. nual gift is less important than the a clean opinion and no qualifica- constancy of the commitment. to acquire. decision, it is recommended that do- n Leave a gift in your will for nors seek counsel from their trusted tions? An independent audit will Guidestar As organizations compete for confirm that controls and safe- available dollars, planning and the charitable organizations that advisors on timing, amounts, and www.guidestar.org made a difference in your life. type of asset to donate to maximize guards are in place in the handling This site allows you to broad fundraising efforts assume of money, to follow the donor’s greater importance. Today’s legacy Consider simple language such as I their charitable giving deductions access a database evaluating give _____ [the sum, percentage, or and philanthropic impact. designation of gifts, and to ensure more than 620,000 nonprofit organiza- donors are more sophisticated, the financial statements accurately they request more information, and description of property] to [charity tions in the United States. name] in [city, state] to be used for represent the operation of the non- they are younger. Their interests, Mary Grace Herrington is chief profit organization. needs, and expectations reflect the its general tax-exempt purposes, but development officer at WVIZ/PBS, Charity Navigator without other restriction as to use. The Better Business Bureau www.charitynavigator.org motivations and values of their 90.3 WCPN, and WCLV 104.9 has developed a rigorous volun- generations. Similarly, emerging n Consider using assets for your ideastream. Contact her at 216- This site provides ratings charitable gift. These can include, tary program in which nonprofit of more than 5,000 charities demographic and economic circum- 916-6270 or marygrace.herrington organizations can be rated on stances are giving rise to a new but aren’t limited to, stocks, bonds, @ideastream.org. based on their financial perfor- 20 best practice standards. If a mance. Charity summaries provide nonprofit organization meets these such information as overall rating, standards, they are listed as an ac- organizational efficiency, revenue, LOOKING FOR ESTATE PLANNING EXPERTISE? credited BBB charity and are able expenses, and mission statement. Look No Further…. to use the BBB Accredited Charity Seal on its materials to provide Alex Petrus, CFRE is Vice Lincoln Financial Advisors is an industry confidence to donors that they President of Advancement with are a high-performing nonprofit leader in Financial Planning and advice. We OhioGuidestone, a BBB Accred- organization. ited charity. He has been with develop advanced strategies to preserve, protect The following websites can be the charity for 20 of his 30 years helpful in evaluating whether a and grow our client’s assets. of fundraising in Northeast Ohio. nonprofit charity is worthy of your Contact him at 440-260-8341 or charitable contribution: [email protected].

James Schaffer, Jr., Brent Besinger, Joel Jensen, Thomas Craft, Our Financial Planners specialize in innovative AIF®, CRPC® Top of Council CRPC® CPA®, PFS, AEP® Top of Council President’s Cabinet President’s Cabinet wealth creation techniques, investment planning, estate and business succession planning. We will make ourselves available for a confidential initial consultation to discuss your financial and estate planning needs.

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Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-19

CHARITABLE GIVING Tips to selecting right donor advised fund

BY LAURA MALONE Contributions Succession ver the last decade, the What types of assets are How flexible are the growth of donor advised eligible for contribution (e.g. provisions for succession Ofunds (DAFs) has been 2 cash, marketable securities, 5 upon the donor’s death? Is increasing at a rapid rate. Their closely held securities, real estate, and involvement limited to the donor simplicity to set up, flexibility life insurance)? How quickly do these and their spouse or can unlimited and tax-saving capabilities have assets have to be sold or rebalanced? successor advisors be named? proven to be an excellent tool in estate planning and business exit strategies. Investments Online access However, choosing the best What investment Does the program offer the DAF for a donor’s circum- choices are avail- ease of secure online access stances can be as varied as 3 able? Are contribu- 6 to your account? the different charities that tions pooled (i.e. dollars they choose to support. donated are pooled with other donors for investment The following is a list of MALONE purposes) or can the dollars Costs questions that a potential be separately managed in Are there set-up or termi- donor and their advisor their own investment account by the nation fees? What is the need to consider when determining 7 annual administrative fee? Are donor’s existing financial advisor? which DAF may be best for them there minimum account level charg- your funds held permanently by the and enjoyable as possible. and their interests: es? Does the organization require a initial administrator? certain portion of the fund to be set Laura J. Malone, CAP®, CEPA®, Grant distributions aside for its own purposes? Most im- Thinking through these seven is director of gift planning at Are there restrictions on portantly, will the organization allow tips before opening a DAF will give American Endowment Foundation. Affiliations grant distributions (e.g. you to transfer the fund in the future the insight needed to make chari- Is the organization that Contact her at 877-599-8903 or 4 geographic, religious, etc.)? to another DAF administrator, or are table giving as tax-smart, flexible, email [email protected]. sponsors a DAF affiliated Is there a minimum annual distri- 1 with another entity (for-profit bution requirement that the donor or non-profit)? How might these must give, or a maximum annual affiliations help or hinder the donor’s limit that restricts how much can use of a fund now or in the future? be given away? WorkWork withwith us.us. Congratulations to Consider joining Western Reserve Land Radd L. Riebe Conservancy’s corporate partnership program. Stout Risius Ross, Inc. For more information, contact Jon Logue at on receiving the 440.528.4150 or [email protected]. 2014 Distinguished Estate Planner Award from THE ESTATE PLANNING COUNCIL OF CLEVELAND

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Crain’s Cleveland Business Custom Publishing E-20 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

CHARITABLE GIVING Designating contributions for a personal cause in carrying out its mission. BY MICHAEL D. GOLER I encourage everyone, regardless f you have a passion for a cause, of his or her age or family situa- you are more likely to support tion, to have an estate plan (which Ithat cause financially. You may could be just a will but may also attend fundraising events, drop a include one or more trusts if appro- donation in the mail, or purchase priate), and to consider a philan- goods that contribute a percentage thropic gift as part of that will or trust. Inclusion of a philanthropic Turning passion into impact of the purchase price back to the gift in your will or trust is giving. The best choice will depend organization. And if you BY LINDA M. OLEJKO individuals and organizations with have a personal connection easy to do and offers these on the client’s objectives, resources, complementary missions. to a cause, you are much main benefits: ike entrepreneurs who trans- tax planning needs and desire for Clients can further diversify more likely to want to con- Simplicity: Just a late a passion into a family involvement. their giving by incorporating phil- tinue to support that cause sentence in your will is all L successful business, One couple spoke to anthropic goals into their portfo- far into the future. that is needed. For exam- great philanthropists take us about wanting to pass lios. A growing trend is to employ For example, as an at- ple: “I give and bequeath inspiration from their life their values from genera- impact investing, an investment torney, I am keenly aware the (sum or description) of experiences and apply it tion to generation, but was style that blends financial perfor- of the importance of com- my estate to (charity name, to their giving. Today’s uncertain what form their mance with a measurable social location) a not-for-profit efforts should take. After benefit. These vehicles allow inves- munication. Having dealt GOLER philanthropists want to with stuttering since third corporation, for its general channel their desire “to do considering their financial tors to align market participation grade, I found my way charitable purposes.” something” into purpose- and nonfinancial objec- with their philanthropic mission to Cleveland Hearing & Speech Flexibility: Because the gift ful and strategic action. OLEJKO tives, we recommended a and objectives, often without sacri- Center (CHSC) soon after my son is not received until the end of More than writing a check, private foundation. Once ficing returns. was born. your lifetime, you can change it as donors frequently want to their attorney established Those with the resources and in- I worked for many months with many times as you wish. You can invest in the people and programs the legal structure, we facilitated clinations to pursue a hands-on ap- a speech therapist and learned increase or decrease the gift that can make a measurable differ- educational sessions with the proach to philanthropy undertake techniques I still use today to according to changes in your ence. We believe effective philan- family to help them develop their a deeply personal journey. Putting manage my stutter. In the process, situation. thropy begins with a sound plan mission and establish grant guide- philanthropic intentions into effec- I gained a passion for a very spe- Versatility: You can structure that clearly defines objectives and lines and procedures. Importantly, tive practice is best navigated with cial organization — CHSC. your will to leave a certain amount areas of focus. From there, the plan we remain available to guide the the help of an experienced advisor, I have turned that passion into or a percentage of your estate. builds with relevant procedures family as new issues arise and implemented through a team of service and support so that others Tax relief: If your estate is and guidelines that are structured needs evolve. When donors feel specialists and supported by family could benefit from various services subject to estate taxes, your gift and sustainable, yet flexible for secure that all the right pieces are members. By turning vision into offered by the same wonderful may be entitled to an estate tax changing times. in place, they can focus on fulfilling action, donors can make a signifi- agency that helped me. Over time charitable deduction for the gift’s One of the most challenging their philanthropic intentions. cant impact and leave the world a I realized I wanted to make certain full value. steps is selecting an appropri- Like an investment portfolio, better place. that support would also continue ate giving vehicle for the desired philanthropic plans can benefit long after I’m gone. Therefore, I Michael D. Goler is a corporate, outcome. Some of the many pos- from diverse strategies. In addition Linda M. Olejko, CFP® is a made a personal commitment in real estate, finance and probate sibilities we recommend to clients to financial support, many philan- Managing Director of Glenmede. the form of a planned gift. The gift attorney at Miller Goler Faeges include private foundations, thropists wish to donate their time Please contact her at 216-514- is unrestricted and is to be used to Lapine. Contact him at 216-696- charitable trusts, giving circles, and professional resources. Others 7876 or Linda.Olejko@glenmede. support and strengthen the agency 3666 or [email protected]. donor-advised funds and personal may leverage connections among com.

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Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-21

CHARITABLE GIVING The power and simplicity of endowed giving

BY BRIAN FREDERICK distributed as grants, an endowment allows you to give more over magine making one gift to your time, far more than a one-time gift favorite charity or cause that would be worth. Ikeeps on giving forever. Imag- An endowment can be personal- ine having an everlasting impact ized to fulfill any charitable goal or on your community. Now, imagine passion. An endowment can also be that you can make a gift during created in your name or your fam- Protection and wealth transfer solutions for the very affluent your lifetime that would allow you ily’s name, in memory or honor of and your family to bear witness to a loved one, or to benefit a specific Access to institutionally priced insurance products through the change in the charitable organization. M Financial Group community you The endowment can be estab- helped make. lished now or at the time of pass- 20 year history of world class service after the sale This is the power ing. All funds held at a community of endowed foundation are public funds; any- Work exclusively through preferred introductions giving, and it’s one can donate to any fund at any from trusted advisors within reach for time. By starting your fund before everyone. your passing you can encourage Consultative and collaborative business model To get friends and family to support its started, donors growth. With a donor advised fund, FREDERICK donors are involved in recommend- simply make 6100 Oak Tree Blvd., a permanent, ing what grants their fund makes. tax-deductible donation to a com- An endowment is unlike any South Park Center munity foundation or charity. The other gift because it has perma- Plaza I, Suite 420 amount varies, but it can be as nence. Your gift will continue to Independence, OH 44131 little as $10,000 deposited over grow, make grants annually in a five-year period, as is the case your name, and have a lasting im- 216-328-5534 at the Community Foundation of pact on your community forever. www.theIDGteam.com Lorain County. The principal is invested wisely and the income is Brian Frederick is President and used to provide ongoing, sustain- Securities offered through LPL Financial. Member FINRA/SIPC. Investment products and services available to residents of the following CEO of the Community Founda- states: OH. Insurance Design Group is a division of Ownership Advisors, Inc., an M Financial Member firm of M Financial Group. able funding for causes or organi- tion of Lorain County. Contact him Insurance Design Group, Ownership Advisors, Inc., and M Financial. M Financial is not affiliated with nor endorsed by LPL Financial. zations. Because only a percentage at 440-984-7390 or bfrederick@ of the investment earnings are peoplewhocare.org.

MY BENESCH MY TEAM Live for today. Plan for tomorrow.

Deviani M. Kuhar, Partner For all the time and effort you’ve put into building your wealth, you deserve peace of mind in return. Chair, Business Succession Planning & The kind that comes from knowing your assets are protected, your wealth will be distributed as you Wealth Management wish, and your future is as secure as you can make it. Practice Licensed to practice law Whether you need to build an estate plan from scratch, or ensure your current plan is in sync with in Ohio today’s rapidly changing laws, our attorneys can help. We have the specialized knowledge and experience to manage all aspects of your estate. Gary B. Bilchik, Partner Have you considered how taxes will impact your wealth? Do you have a business succession plan Business Succession in place? Are you sure that your assets have been aligned properly with your estate plan? Have you Planning & Wealth Management Practice planned for charitable gifts…long-term care…incapacity? Licensed to practice law in Ohio and Florida We can assist in these areas and help you manage your assets in ways that will minimize the probate administration process. Live for today…plan for tomorrow. Dana Marie DeCapite, Talk to us about how to get started. Associate Business Succession Planning & Wealth Management Practice Licensed to practice law in Ohio and Florida

BFCA_EstatePlanningAd4c_10.25x7.indd 1 10/28/14 3:12 PM Crain’s Cleveland Business Custom Publishing E-22 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

CHARITABLE GIVING Why do people donate to charity? Individuals motivated by variety of reasons, incentives their image; people want to be BY JOSEPH P. KOVALCHECK JR. viewed as charitable. Tax Deductions There are numerous reasons Research discovered Individuals who donate to why people donate to charitable that gifts given charity may deduct con- organizations: anonymously tributions on their federal tended to be tax return (with certain smaller, but gifts limitations). In addition, Religion that were publi- these donations reduce their Many religions advocate that cized were much bigger. taxable estate, thus reducing people should give to charity as Thus, a main incentive their federal estate tax. Also, a spiritual requirement. Major for giving is positive personal decedents who donate to charity religions empha- publicity. at death reduce their taxable size that giving to estate. charity is a main virtue. In many Personal religious worship experience Choosing the charity services, some Donors often give to charity Finally, choosing the proper type of offering is when there is a personal experi- Before giving, investigate charity is most important. Experts collected for the ence connected to medical or have advised not to impulsively church or for the health issues. For example, people respond to “crisis” or “emergency” the organization’s donor KOVALCHECK poor. Religions who have cancer or know someone appeals. Instead, if you are sym- also promote tith- who has cancer often participate in pathetic with a cause, research ing, which comes from an ancient Cancer Society fundraising activi- stewardship effort the charity and discover how word for tenth (as in 10%). ties. Through donating, people are your donation impacts the social non-ask events are great communi- able to contribute to a cause that BY NANCY MCCANN problem the charity seeks to solve. cation avenues. has affected them personally. Feeling good Remember that legitimate chari- t its core, donor stewardship Donors tend to stay connected Research has shown that people ties provide transparency in their is about progressively build- with organizations that engage donate because it provides them Good example financial undertaking and account- Aing deeper relationships their minds, hearts and bodies in with a good feeling. Scientific ability online. with those who provide addition to their wal- research results showed that the for children financial contributions to lets. Does the organization Parents may choose to donate pleasure centers of the brain were charitable organizations. encourage its donors to to charities to teach their children Joseph P. Kovalcheck Jr., CPA, activated by the process of giving. That means having a volunteer, serve on com- the concept of giving. By involv- CFP, is Chief Operating Officer Charitable giving greatly enhances plan for thanking, com- mittees or even join the ing their children in the process & Account Manager for M+N personal happiness and improves municating and interacting board? of giving, children experience the Advisory Services (a subsidiary Do they ask what you the world. of Maloney + Novotny LLC). with donors in ways that joys of philanthropy at a young solidify their support over think? Solid organizations age. Parents who pass down these Contact him at 216-363-6489 or engage their donors and [email protected]. time. A major survey shed Image positive values to their children light on the donor retention MCCANN ask for suggestions on how Another research study deter- are encouraging them to continue problem for nonprofits: It it could be doing better. mined one of the main reasons demonstrating this generosity showed that for every 100 donors There are no “one-sized people give to charity is to enhance through their lives. that were acquired, about 107 were fits all” solutions for effective donor lost. stewardship. I’ve listed some of the For far too many busy nonprof- basics that you certainly need to its, donor stewardship is an after- keep in mind, but beyond that it’s thought. As you build your estate really up to you. plan, look carefully at the organiza- And that’s a good thing, because tions you are considering support- you know best which organiza- ing to ensure they are working to tions will not only take care of your build a relationship beyond simply contribution but also care for its BUSINESS lasting relationship with you. cashing your checks. Building our bank one quality relationship at a time Communication is the essential ingredient of donor stewardship. Nancy McCann is Chief Develop- How well does the organiza- ment Officer for the Western Re- tion communicate? Newsletters, serve Land Conservancy. Contact emails, videos, podcasts, websites, her at 440-528-4153 or nmccann Facebook, Twitter, Pinterest and @wrlandconservancy.org.

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Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-23

CHARITABLE GIVING

DAILY NEWS Flexible deferred charitable gift annuities: ALERTS FROM CRAIN’S you decide when the time is right Register for free set to begin during a range of dates e-mail alerts and BY DONESHA PEAK between five and seven years from receive: uring National Estate Plan- now, he will receive a charitable ning Awareness week in deduction based on the earliest start date of year five. By making a gift The Morning Roundup: DOctober, Americans were The day’s business news today and allowing additional time encouraged to update their estate from Ohio’s daily papers plans. As a result, many individu- for growth, Tom can secure a larger als are beginning to think more charitable income tax deduction for Breaking news alerts broadly about including their use now when his salary may be at favorite charities its highest and later decide when his Daily headlines: Crain’s- as part of their annuity payments will begin. produced news and blog long-term finan- Taxation of annuity income de- items from the day cial planning. pends on the type of asset contrib- Real Estate Report: A Establishing a uted. When cash is used to fund an weekly guide to real flexible deferred annuity, a portion of the payment estate news. Published charitable gift is return of principal, and the rest Monday. annuity is a good is taxed as ordinary income. When option for those an appreciated asset like stock Health Care Report: A who want to is used, payments will consist weekly guide of changes PEAK make a chari- of three parts: ordinary income, in the health care indus- table impact since it allows one capital gain income as a result try. Published Tuesday. of appreciation, and return of to make a contribution to char- Dealmaker Alert: A ity, receive the highest income in principal. Furthermore, removing the funding asset from one’s estate weekly guide on M&A return when needed, and obtain a trends and recent larger charitable deduction to save may help to reduce estate taxes and probate costs in the future. transactions in Ohio. taxes now. Published Wednesday. A traditional charitable gift annu- In addition to planning for retire- ity is an agreement in which a char- A flexible deferred charitable gift which are included in the annuity ment, the annuity income may also Manufacturing Report: A ity, in exchange for an irrevocable annuity builds upon the benefits of agreement. The longer the payments be a good fall-back option should weekly guide to Northeast gift of an asset, promises to pay a a traditional annuity. An annuity of are deferred, the higher the annuity market investments not perform as Ohio’s manufacturing fixed income to one or two donors for this type rewards the donor for wait- payment, charitable deduction, and anticipated, or if the donor has unex- sector. Published every their lifetime. The payout rate of the ing to begin payments by offering charitable contribution. pected costs or expenses. No matter other Wednesday. fixed annuity income is determined a larger charitable deduction and For example, Tom wants to make what the circumstance, establishing by the age of the donor(s) at the time annuity payments when income is a gift of $250,000 to his favorite a flexible deferred gift annuity is the Small Business Report: the gift is made, and most charities deferred for a period of years. charity to establish a flexible de- right choice as it affords the comfort A weekly guide to small follow the rates suggested by the A flexible deferred gift annuity is ferred gift annuity. He is currently of income when the time is right business news. Published American Council on Gift Annuities. especially beneficial when a donor 65 years old and runs his family while maximizing charitable impact. Thursday. The older the donor at the time of would like to secure a larger amount business. He is considering retire- Shale and Energy the gift, the higher the payout rate of income in the future but isn’t sure ment in the next five years but is Donesha Peak, JD, MBA, is As- Report: A weekly guide will be. With a traditional gift annu- of the exact date. Payments can be unsure of the exact date. If Tom sistant Director of Gift Planning at to the energy industry. ity, payments begin as soon as the “turned on” during a range of elec- establishes a flexible deferred chari- Cleveland Clinic. Contact her at Published Friday. agreement is established. tive start dates chosen by the donor, table gift annuity, with payments 216-442-5358 or [email protected]. PRESERVE PROTECT RESOLVE

Angela G. Karen A. Jerrold L. Gary W. Eugene A. Carlin Davey Goldstein Johnson Kratus

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Crain’s Cleveland Business Custom Publishing E-24 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

INSURANCE The disappearing agent and the reappearing premium

BY RICHARD TANNER and assigns them to a new agent with a sales quota to meet. After ife insurance is a complex three years the chance of this financial asset that many agent remaining in the business L affluent families own as part is about 11%. In other words, it’s of a comprehensive family wealth likely that the only time someone plan. Whether held personally, in calls is when a rookie is trying to trust or by their companies, life sell a new policy. Since world class insurance is often a misunderstood service requires specialized experi- asset. Advisors who serve the ence and staff support, we rarely very affluent are often concerned see it done consistently well. about the disappearing agent and When evaluating insurance the reappearing premium. Over needs for the very affluent, it’s the past 10 years there have been important to seek advisors with three important trends that have the ability to analyze complex contributed to this problem: insurance strategies through a n Seasoned agents are retiring consultative process. Find an agent and dying who specializes in large, messy n Young talented professionals insurance placements with an are moving toward wealth manage- independent business model and ment and investment banking and unbiased product capacity. Look away from the insurance industry for a proven history of great service n Historically low interest rates and ask for a sample of their have negatively impacted the annual review process and refer- returns earned by life insurance ences from other advisors. We find companies, leading to a vast pool of most clients appreciate including underperforming policies. their trusted advisors in an annual As seasoned agents retire, die insurance review process where or leave the business, most do new planning opportunities are not have a succession plan that often uncovered. ensures quality service after the policy has been sold i.e. , the disap- Richard Tanner is President of pearing agent. If the agent is gone, Insurance Design Group, a division the insurance company places the of Ownership Advisors Inc. policies into the “orphan” category Contact him at 216-328-5534.

Through the generosity of our donors, the Jewish Federation of Cleveland is one of Ohio’s largest TOGETHER, grantmaking organizations. Last year, through its funds, we can change foundations, and annual Campaign, the Federation granted close to $150 million to social service, the world. educational, and humanitarian organizations. Grants support Cleveland’s Jewish and general communities, as well as those in more than 70 countries around the world.

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Find out how your generosity can enrich lives and provide a brighter future for families in Greater Cleveland and around the world by contacting Carol Wolf at 216-593-2805 or [email protected].

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Crain’s Cleveland Business Custom Publishing Advertisement ESTATE PLANNING NOVEMBER 10-16, 2014 E-25

taxes, whereas, if you donate the INSURANCE whole life policy you may deduct the Families must determine what changes they can make premium and the cash value of the to satisfy their overall goals and objectives. policy. By choosing this option, you purchase a policy with the intent of Your naming the charity as the owner and beneficiary after the purchase, making a larger impact for the organiza- Estate tax reform may force tion than imagined. greatest For example, a healthy 50-year- old purchases a policy in her name then subsequently names the life insurance reassessment charity as the owner at the time asset: of transfer. The donor commits to amount, but this may be agreement. There also may BY LARRY ROTHSTEIN giving $5,000 annually toward the restricted depending on the be other sources of pre- premium payments for 10 years, rior to recent estate tax re- type of policy and the insur- mium dollars available that allowing the total $50,000 gift to form measures, many fami- ance carrier. had not been previously you considered. For example, grow in excess of $300,000 toward P lies secured life insurance to taking annual distributions BY DIANE TOMER the benefit of the organization. provide liquidity for estate taxes. Restructuring the Policy. Once the charity is named the pro- With the estate exemption now at Although estate tax liquid- from an IRA may produce ou are passionate about prietor of the policy, the donor agrees $5,340,000 per person ($10,680,000 ity may no longer be a pri- funding for the insurance to make the annual donation to the per married couple), many estates mary goal, the policy may that will ultimately pay the helping an or- ROTHSTEIN ganization grow organization to cover the fall below this threshold. Fami- be restructured to provide IRD tax due. Secondly, a and increase its premium. The organization lies must consider whether they a different type of benefit Split Dollar arrangement Y uses this to pay the premium wish to continue making annual configuration. Many newer life between the insured’s business programs, services, and care. You donate annu- so that it is not a burden on premium gifts, or determine what insurance policies offer Long-Term- and an ILIT may provide premium ally with gifts of various the operational budget and changes they can make to satisfy Care (LTC) riders, which can pro- funding to maintain the coverage sizes and have a desire to the donor is allowed to use their overall goals and objectives. vide coverage for LTC expenses as with little out-of-pocket funding from make a greater impact to the annual tax-deductible well as provide life insurance. Most the insured directly. older policies do not contain these the organization’s mission donation to achieve their Annual Premium Gifting. If a The key is to redefine the family’s than what your current charitable desires. policy is owned by an irrevocable provisions. The cash values of an goals and objectives to see how the capacity allows. When TOMER Life insurance can be a life insurance trust (ILIT), the older policy may be transferred to life insurance now fits into their considering multiple self-completing gift. For a grantor does not have access to pol- a new policy with LTC benefits on overall plan. An experienced life gifting vehicles and your personal donor committed to making annual icy cash values. Policy surrender or a tax-free basis (Section 1035) as insurance professional can provide portfolio, you may want to consider gifts, a portion of the annual gift can a life settlement will only serve to long as the insured can qualify in the technical support and guidance your own insurability. be directed to this giving vehicle, leave cash values in the ILIT with underwriting and an ILIT can do necessary to review various options As a donor, you may use an exist- guaranteeing the continuation of the loss of the future death benefit. this by loaning the LTC benefit and make an informed decision. ing policy that is no longer needed, impact in perpetuity. Suspending annual gifts may likely payments to the insured. name the charity as the beneficiary be problematic since many life in- Larry Rothstein, CLU, AEP, is a and owner, and deduct the premium Diane Tomer is Director of Devel- surance policies are “underfunded” New Uses and Premium Sources. Senior Advisor with Cornerstone for tax purposes. If you should de- opment for Recovery Resources. due to the long-term decline in The policy may be used for other Consulting Group, LLC. Contact cide to donate a term life policy you Contact her at 216-431-4131, general interest rates. There may purposes such as funding for estate him at 330-665-2376 or lrothstein may deduct the premium from your ext. 2501 or [email protected]. be opportunities to reduce the face equalization, IRD taxes, or a buy/sell @cornerstoneconsultinggroup.net.

Together we can make a difference. Today we honor our prestigious Allied Partners in Philanthropy society. Your support helps maintain Cleveland Clinic as a world leader in healthcare.

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Crain’s Cleveland Business Custom Publishing E-26 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

INSURANCE Plan for final years now with long-term care insurance

BY RICK KLUCHIN and a discount is given. Inflation riders are available at a high cost. very American has heard Universal Life Insurance Policy about The Affordable Care with a Long-Term Nursing Care E Act. But did you know that Rider. This provides a pool of your highest cost expense money for long-term care Will you outlive your might be in the final years in lieu of a death benefit if of your life? Today, the you meet two of six activi- high cost of long-term ties of daily living. nursing care ranges from Single Premium Whole life insurance policy? $200 to $350 per day de- Life. A new option where pending on where you live. a pool of dollars already new mortality tables in In other words, if you pur- Based on 3% to 5% infla- invested at low rates can be The effects of 2001 that had not been chase a policy to age 100, it tion, the expected costs in transferred to a single-premi- updated since 1980. Many remains guaranteed to age 20 years could be as high KLUCHIN um whole life policy, which low interest rates insurance carriers adopted 100 regardless of interest as $500 to $1,000 per day. allows access to the death the new table in 2003, rate fluctuation. The average stay at a nurs- benefit for qualifying long- and increased life which, for the most part If you own permanent ing home is 2.5 years. term care expenses. A well-known resulted in lower insurance insurance of any kind, you Long-Term Care can be defined insurance company gives a guarantee expectancies costs. should have it reviewed by simply as care provided by another of principal and a death benefit, which What does this mean an insurance professional WASSERMAN party for the benefit of someone who if never needed allows for a long-term BY JEFFREY M. WASSERMAN to you, the policyholder? on a regular basis. Like is unable to care for themselves due conservative investment pool. Simply put, if you pur- any asset, life insurance to aging, illness or disability. There The challenge becomes protect- f you look over the past 20 chased life insurance before 2003, needs to be managed and moni- are several ways to pay for the high ing your assets while maintaining years of declining interest rates you are likely paying too much. tored to ensure that the policy is cost of Long-Term Care: your current lifestyle. This is an I (more than 4% decrease at this Couple that with the low interest performing as expected and that it Government Funded/Medicaid. opportune time to consider the value point in history according to the rate environment and you may is competitive relative to current You must spend down virtually all of long-term care insurance so you U.S. Department of the Treasury), be overpaying for a policy that is product. of your assets prior to becoming can feel safe and secure knowing you combined with the increased life underperforming. You owe it to yourself and to eligible and you may not be able have some control over the cost of expectancies of the U.S. popula- One possible solution is Guar- your family to take a fresh look at to receive services at the facility of long-term care expenses. tion, you’ll see that you may outlive anteed Universal Life Insurance. your life insurance. your choice. your insurance policy. A “perma- Developed in the early 2000s, these Traditional Long-Term Care In- Rick Kluchin is president of Encore nent life” policy may not even last products have an interest rate Jeffrey M. Wasserman is surance. The annual premium for Wealth Planning. Contact him at 216- until death without your premiums component that could potentially Managing Director & Executive a 55-year-old ranges from $3,000 to 313-9322 or rkluchin@encorewealth- significantly increasing. increase in favor of the policy- Vice President of Oswald Specialty $5,000 depending on the daily ben- planning.com. For more information In response to increased longev- holder but offer protection against Life. Contact him at 216-367-5990 efit and length of stay. Most plans visit www.partnershipforlongtermcare. ity, the National Association of a declining interest rate and reduc- or jwasserman@oswaldcompanies. offer a pool of benefits for a couple com/ohio-partnership/index.html Insurance Commissioners adopted tion in the duration of the policy. com.

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INSURANCE BUSINESS PLANNING Here are important Life settlements provide steps to follow n Identify the managerial positions an ideal option for for which you will potentially need a successor n Identify the talents and competen- insurance management cies of your employees n Involve senior leaders in the process BY JOSEPH POTELICKI would result by doing a life settlement transaction. n Analyze external sources for poten- life settlement is a financial A third option would be to tial talent for continuity and efficient transaction in which a policy engage in a life settlement transac- succession planning A owner possessing an un- tion and receive a payout greater n Commit to internal talent develop- needed or unwanted life insurance than surrendering the policy back ment through further qualification and policy sells the policy to a third to the insurance company. mentoring Life settlements offer a rational and party. The platform for the life n Choose relevant measuring metrics profitable exit strategy that addresses Focus on details key settlement industry was created in and turn performance evaluation into a the financial objectives of the policy- 1911 by virtue of Grigsby v. Rus- long-term process holder. The sale of a life insurance sell. In this seminal case, the U.S. n Supreme Court declared insurance policy is a taxable event. You should in succession planning Establish strategies to recruit and policies to be personal property and consult your tax advisor based on your well-communicated succession retain talented employees BY JOSEPH M. MENTREK freely assignable, thereby granting own particular circumstances. planning process signifies that n Implement strategies to maintain a policyholder the right to transfer Receiving an offer doesn’t obligate hange is inevitable. Even the current leadership is interested in commitment and senior level loyalty ownership to others. you to sell your policy. You can most seasoned and experi- the long-term development of the Most successful business owners enced business leaders must business. Investing the time and C are familiar with the grim statistics face the fact that at some point, effort in the process enables the Life settlements are a wonderful surrounding the success (or more the torch must be passed to the smoothest possible transition, giv- commonly, the lack thereof) of the solution to consider for funding next generation. ing employees peace of mind, and transition of a business from one Business succession is a multi- offers workplace stability. generation of owners and managers long-term care because the policy faceted and complex process that A well conceived plan will also to the next. Identifying and cultivat- must simultaneously focus inspire confidence in cus- can be settled in approximately ing the talent necessary to lead the on ownership succession, tomers, clients, suppliers, business into the future will certainly six to eight weeks. management succession, vendors and the commu- give you an edge. And while succes- POTELICKI strategic planning for nity-at- large — knowing sion planning is not an exact science, the business, estate and that the company will a process-oriented approach utilizing The policy is sold for more than always decide to keep the policy. financial planning for the continue functioning even the skills of your allied team of pro- the cash value offered by the life Furthermore, Ohio has a statutory retiring owner, as well as after the departure of the fessional advisors will undoubtedly insurance company but for less than 15-day rescission period after receiv- the attendant tax conse- current leader or leader- improve your chances of a successful the death benefit. The purchaser ing payment for your policy. quences facing both the ship team. transition, and are worth the time, becomes the new beneficiary of the Life settlements are a wonderful business and the owner. Whether your succession solution to consider for funding long- MENTREK effort and investment. policy and is responsible for all of the Changes in managerial plan involves a transition term care because the policy can be subsequent premium payments. You teams can often result in to family members, key settled in approximately six to eight should not have to pay a fee for a life major shocks to employees, as employees, or a sale to an unrelat- weeks. There are no long-term care Joseph M. Mentrek is Vice President settlement evaluation or transaction. well as the stakeholders in the ed third party, developing superior medical requirements to qualify for, And The Director Of The Wealth The purchasers can be large banks, supply and distribution chain of employees for managerial and no costs involved in applying for a life Center At Meaden & Moore. Contact hedge funds and pension funds. Each the goods or services a business other key positions is an essential settlement, no requirements to be ter- him at 216-928-5343 or jmentrek provides a higher degree of consumer offers. Embracing a formal and element of succession planning. @meadenmoore.com. protection with regard to privacy and minally ill, and there are no more pre- confidentiality. mium payments. Once the money is There are many scenarios that received from the life settlement, that might encourage a policy owner to money can then be directed to pay for sell a life insurance policy. One senior housing and long-term care. such scenario may be a key man Always check with the Ohio policy that is no longer relevant af- Department of Insurance to verify ter the sale or closure of a business Ohio licensure status of life settle- or if the insured is retiring. Taking ment brokers and providers before the policy back to the insurance engaging their services. company, will result in two choices: Let the policy lapse and the Joseph Potelicki is a Viatical/Life policy owner receives no money Settlement Broker for Living Cov- Surrender the policy and receive enant, LLC. Contact him at 330-342- less money for the policy than 3237 or [email protected]. Trust & Planning

Together we provide duciary guidance, administrative support and tax consulting for business owners, executives and trustees.

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To make a gift today, contact Diane Tomer at 216-431-4131 x2501. Though related entities, Sequoia Financial Group, LLC and its aliates, and Cohen & Company, Ltd. are separate companies with common, but not identical ownership. Investment advisory services oered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Certain third–party money management oered through ValMark Advisers. Inc., an SEC Registered Investment Helping people triumph over Advisor. Securities oered through ValMark Securities, Inc. Member FINRA, SIPC. 3500 Embassy Parkway, Akron, OH 44333, 330-375- 1955 60 YEARS 2015 mental illness, alcoholism, drug 9480. Certain insurance products oered though Sequoia Financial Insurance Agency, LLC. Sequoia Financial Group, LLC and related entities are separate entities from ValMark Securities, Inc. and ValMark Advisers, Inc. Cohen & Company, Ltd and related entities are and other addictions. www.recres.org separate entities from ValMark Securities, Inc. and ValMark Advisers, Inc

Crain’s Cleveland Business Custom Publishing E-28 NOVEMBER 10-16, 2014 ESTATE PLANNING Advertisement

BUSINESS PLANNING Selling a business? Think about charitable planning Here are a few examples of how BY KAYE M. RIDOLFI stream for your lifetime or a fixed it can work: period. The remainder can benefit n hen selling a business, Donor-advised funds have one or more charities. what is your “IPO” become popular because they All of these vehicles allow for strategy? Not initial provide donors an immediate and income tax benefits and, depending W full income tax deduction at the public offering; rather, what is on structure, may also allow for your initial philanthropic outset. When you are busy estate or gift tax benefits. opportunity? A smart IPO with the many details of assessment can pay divi- organizing your sale, setting More than a tax strategy dends if you decide to add up a donor-advised fund can be the simplest part of your Many former business owners What legacy will you leave behind? a charitable component to jump into philanthropy like they did the plan. transaction. Then, after the big event has come and gone, when running a company — full go! The Sound for the Centennial Campaign provides When working with you can make ongoing chari- Philanthropy becomes their encore an opportunity for each and every member of this your team – your accoun- table grant recommenda- career as they work on a mission for tant, attorney and wealth ĐŽŵŵƵŶŝƚǇƚŽŵĂŬĞĂůĂƐƟŶŐŝŵƉĂĐƚŽŶdŚĞůĞǀĞůĂŶĚ tions benefiting your favorite their fund and involve others as advi- management professional RIDOLFI sors, much like a corporate board. Orchestra’s success. nonprofit organizations, both – consider including a locally and nationally. Many of our donors say that ǇƌĞŵĞŵďĞƌŝŶŐƚŚĞKƌĐŚĞƐƚƌĂŝŶǇŽƵƌĞƐƚĂƚĞƉůĂŶƐ͕ philanthropic specialist. n Supporting organizations are participating in philanthropy at a ǇŽƵǁŝůůŚĞůƉĞŶƐƵƌĞƚŚĂƚǇŽƵ͕ǇŽƵƌĐŚŝůĚƌĞŶ͕ĂŶĚǇŽƵƌ Philanthropic specialists can more structured in format. If you higher level has been one of their children’s children always have access to an orchestra work with your professional want the formality of a private greatest joys in life. advisers before the sale transaction At the foundation, our greatest ŽĨƐƚƌĞŶŐƚŚĂŶĚĚŝƐƟŶĐƟŽŶ͘ foundation and the tax advantages to identify tax-saving strategies of a public charity, this approach joy is helping our donors turn their &ŽƌŵŽƌĞŝŶĨŽƌŵĂƟŽŶĂďŽƵƚƐƵƉƉŽƌƟŶŐƚŚĞĂŵƉĂŝŐŶ that will also create a pot of dollars may be for you. Supporting organi- passion into purposeful giving. ƚŚƌŽƵŐŚĂŶĞƐƚĂƚĞŐŝŌ͕ĐŽŶƚĂĐƚƌŝĚŐĞƚDƵŶĚǇ͕ you can use for your philanthropy. zations provide all the back-office >ĞŐĂĐǇ'ŝǀŝŶŐKĸĐĞƌ͕ďǇĐĂůůŝŶŐϮϭϲͲϮϯϭͲϴϬϬϲŽƌ One such strategy might be support and leave the joy of grant- Kaye M. Ridolfi is Senior Vice donating unique assets, such as ĞŵĂŝůŝŶŐďŵƵŶĚǇΛĐůĞǀĞůĂŶĚŽƌĐŚĞƐƚƌĂ͘ĐŽŵ͘ making to you and your family. President of Advancement for the closely held business units or pub- n Charitable remainder trusts Cleveland Foundation. licly traded stock, with or without provide you an immediate income Contact her at 216-615-7168 restrictions. tax benefit as well as an income or [email protected].

When You Need to Know The Right Value

Personal Property Appraisals & Estate SalesSales Personal Property Appraisersrs Equitable Distribution Charitable Donation Insurance - Estate Sales Auction Coordination IRS Compliant Appraisals

With one call to L&L, Now trending? Series LLCs you get experts that have over two decades of experience in art, collections can simplify asset management and home contents. series holds its ute, but Series LLCs organized in L&L offers a full range of services from BY JULIE FIRESTONE assets and op- permitting states can register as a professional appraisal report to an estate sale to a full clean-out of a home. efore 1996, only separate erations separate foreign limited liability companies Our services are customized to meet your entities could protect assets and distinct from with the Ohio secretary of state. individual needs with expert knowledge Bof one business, operation or every other series To date, jurisdictions permitting and care. property from liabilities of another, and from the Series LLCs include: Delaware, which also meant separate books, master. Benefits District of Columbia, Illinois, Iowa, records, banking and separate may include: Kansas, Minnesota, Montana, (i) cost savings Nevada, North Dakota, Oklahoma, state registrations and annual fil- FIRESTONE ings (if applicable) for each, even if with a single Tennessee, Texas, Utah, and Wis- wholly owned by another. state registra- consin. Now, some states allow for the tion; (ii) one series’ liabilities not “Series LLC” where a new, “mas- enforceable against assets or prof- Julie E. Firestone is an attorney in its of another; and (iii) new series Lisa K. Lowy ISA AM 440.773.4664 - Lorie Hart ISA AM 216.470.7002 ter” LLC is formed that acts as the Mansour Gavin LPA’s Corporate master entity for each separately added merely by amending the www.llestateliquidation.com Members of the International Society of Appraisers and Business Services Group. identified business, operation or master LLC’s operating agreement. Contact her at 216-523-1500 or property, as sub or “series.” Each Ohio has no Series LLC stat- [email protected].

Crain’s Cleveland Business Custom Publishing 20141110-NEWS--53-NAT-CCI-CL_-- 11/7/2014 2:58 PM Page 1

NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 53 TAX LIENS

The Internal Revenue Service filed unemployment Date filed: Sept. 11, 2014 Amount: $11,049 KLE Construction Co. tax liens against the following Amount: $37,842 Type: Employer’s withholding 55 Erieview Plaza, Suite 400F, A&J 6395 Inc. businesses in the Cuyahoga County Amount: $22,197 Cleveland First Fruits Child Development 187 Center Road, Bedford Recorder’s Office. The IRS files a tax ID: 34-1822147 21877 Euclid Ave., Euclid Agez and Stagez Inc. ID: 20-0453073 lien to protect the interests of the Date filed: Sept. 22, 2014 ID: 45-3304729 350 Columbus St., Bedford Date filed: Sept. 11, 2014 federal government. The lien is a Type: Employer’s withholding, Date filed: Sept. 23, 2014 ID: 33-1167642 Type: Employer’s withholding, unemployment, public notice to creditors that the Type: Employer’s withholding, Date filed: Sept. 23, 2014 unemployment, failure to file Amount: $6,234 government has a claim against a unemployment Type: Employer’s withholding complete return company’s property. Liens reported Amount: $31,693 Amount: $20,095 Amount: $9,538 B & M Bar-B-Q Inc. here are $5,000 and higher. Dates 15116 Lake Shore Blvd., listed are the dates the documents Picciones Jewelers Inc. Diversified Enterprises Inc. Thomas A Rak Landscaping Inc. Cleveland were filed in the Recorder’s Office. 24659 Cedar Road, Lyndhurst 7023 Edgecliff Road, Parma 17703 Rauland Drive, Walton Hills ID: 34-1772519 ID: 34-0772251 ID: 34-1747399 ID: 34-1142864 Date filed: Sept. 22, 2014 Date filed: Sept. 22, 2014 Date filed: Sept. 23, 2014 Date filed: Sept. 11, 2014 Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Amount: $6,208 Amount: $31,411 Amount: $17,978 LIENS FILED Amount: $8,977 Spectrum Home Pollock Financial Group LLC CDIS Inc. Health Care LLC Dogtopia Ltd. 28601 Chagrin Blvd., Suite 550, 4805 Pearl Road, Cleveland 12395 McCracken Road, First Fruits Child Development 2624 Noble Road, Cleveland Heights Cleveland ID: 30-0137404 Suite B., Garfield Heights 21877 Euclid Ave., Euclid ID: 42-1620555 ID: 27-0974418 Date filed: Sept. 11, 2014 ID: 20-8667298 ID: 45-3304729 Date filed: Sept. 11, 2014 Date filed: Sept. 11, 2014 Type: Unemployment Date filed: Sept. 23, 2014 Date filed: Sept. 23, 2014 Type: Employer’s withholding Type: Employer’s withholding Amount: $15,007 Type: Unemployment Type: Employer’s withholding, Amount: $8,088 Amount: $27,075 Amount: $6,156 unemployment B & M Motors Inc. Amount: $214,749 Shaker Produce Inc. 5111 Richmond Road, Range of Change Enrichment Dzugan Method-Ohio LLC The Final Cut Bedford Heights Center 29111 Center Ridge Road, Cleveland Offset Press Co. 8630 Evins Ave., Cleveland ID: 34-1638040 12200 Fairhill Road, Cleveland Westlake 1378 E. 17 St., Cleveland ID: 34-1595918 Date filed: Sept. 11, 2014 ID: 27-3762563 ID: 27-1973663 ID: 34-1498683 Date filed: Sept. 11, 2014 Type: Employer’s withholding, Date filed: Sept. 23, 2014 Date filed: Sept. 22, 2014 Date filed: Sept. 11, 2014 Type: Employer’s withholding, corporate income Type: Employer’s withholding, Type: Employer’s withholding, Type: Employer’s withholding, unemployment Amount: $14,146 partnership income unemployment unemployment Amount: $25,684 Amount: $7,853 Amount: $5,498 Amount: $110,724 E-Z Electric Motor Service Inc. Sun Masters LLC TA 23440 Miles Road, Care Store Inc. American Legion 315 Cavalry Staffing LLC Western Reserve General Awning Co. Bedford Heights 5270 Warrensville Center Road, 5400 Transportation Blvd., 769 E. 105 St., Cleveland 1350 E. Granger Road, ID: 34-1051853 Cleveland Suite 12B, Garfield Heights ID: 34-6607516 Brooklyn Heights Date filed: Sept. 11, 2014 ID: 27-0953831 ID: 26-2123291 Date filed: Sept. 11, 2014 ID: 37-1660486 Type: Employer’s withholding, Date filed: Sept. 11, 2014 Date filed: Sept. 23, 2014 Type: Employer’s withholding, Date filed: Sept. 23, 2014 unemployment, corporate income Type: Employer’s withholding, Type: Unemployment unemployment Type: Employer’s withholding, Amount: $14,109 unemployment Amount: $82,990 Amount: $5,473 unemployment Amount: $7,084 P S & Assoc Inc. Trusted Home Healthcare LLC Amount: $24,504 Camelot Landscaping Inc. 3368 E. 113 St., Cleveland 10810 Pasadena Ave., Cleveland Cultural Academy LLC 615 Fair St., Berea Konstanzer Masonry Inc. ID: 34-1765316 ID: 57-1186419 11411 Lake Ave., Cleveland ID: 34-1733390 514 Dover Center Road, Date filed: Sept. 22, 2014 Date filed: Sept. 23, 2014 ID: 27-1244375 Date filed: Sept. 23, 2014 Bay Village Type: Employer’s withholding, Type: Employer’s withholding Date filed: Sept. 22, 2014 Type: Employer’s withholding, ID: 34-0967162 unemployment Amount: $76,459 Type: Employer’s withholding unemployment, corporate income Date filed: Sept. 11, 2014 Amount: $13,793 Amount: $6,919 Amount: $5,339 Room to Grow Type: Employer’s withholding, Rheumatologists LLC Learning Center Inc. unemployment 29099 Health Campus Drive, 87A Northfield Road, Bedford Amount: $22,360 Westlake ID: 76-0807542 Lynda V. Butler D.D.S. ID: 20-8890434 Date filed: Sept. 11, 2014 14100 Cedar Road, Date filed: Sept. 11, 2014 Nowacki Asset Management LLC Type: Employer’s withholding, Suite 210, Cleveland Type: Employer’s withholding unemployment ID: 34-1834802 Amount: $12,109 Amount: $63,734 Date filed: Sept. 11, 2014 Day & Night Transport Inc. Carbone Properties of Type: Employer’s withholding 24091 Detroit Road, Westlake Cave Creek LLC Amount: $22,274 ID: 34-1909846 5885 Landerbrook Drive, Carmax Auto Place LLC Date filed: Sept. 22, 2014 110, Cleveland Type: Employer’s withholding, ID: 34-1906826N 12626 Lorain Ave., Cleveland unemployment, corporate income Date filed: Sept. 11, 2014 ID: 20-4574860 Type: Employer’s withholding Amount: $53,329 CNR Trucking Inc. 83 Justin St., Bedford ID: 27-4863010 Date filed: Sept. 11, 2014 Type: Employer’s withholding Amount: $49,567 Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period Red Fitness 24 7 Broadview Management (NET) Million Return Million Heights May 2011 - Year End -7.46% $925,400 -6.37% $936,300 18605 Detroit Ave., Lakewood 2012 29.99% $1,202,927 16.00% $1,086,108 ID: 46-1653396 2013 51.76% $1,825,563 32.39% $1,437,898 Date filed: Sept. 22, 2014 Type: Unemployment, 10/31/2014 21.59% $2,219,459 10.99% $1,595,988 employer’s annual federal tax return Amount: $43,395 Note: Returns are shown in U.S. dollars after fees. Date of inception for Nowacki Asset Management is May 2nd, 2011. Commercial Maintenance & Plumbing Inc. 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 21350 Libby Road, Maple Heights invested using a value-oriented strategy. NAM claims compliance with the Global Investment ID: 31-1526837 Performance Standards (GIPS®). The S&P 500 Total Return index is subject to volatility and Date filed: Sept. 22, 2014 the NAM composite may or may not be more volatile than the index. Past performance is not Type: Employer’s withholding aguarantee of future performance. Investments carry risks and the potential for loss. Results as Amount: $39,470 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 Mic Ray Metal Products Inc. 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 9016 Manor Ave., Cleveland with the GIPS standards, contact Michael T. Nowacki at (440) 488-6936 or write Nowacki Asset ID: 34-0699197 Management, 29525 Chagrin Blvd. Suite 301, Pepper Pike, Ohio 44122, or Date filed: Sept. 22, 2014 [email protected]. Type: Employer’s withholding, 20141110-NEWS--54-NAT-CCI-CL_-- 11/7/2014 12:23 PM Page 1

54 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014 HIGHEST PAID NONPROFIT EXECUTIVES GG

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Comben Jr. ??>/5$$='=5 24 28 9) .= , A ,.%%1F>3?1;4%>1(:!FF >1/%F! ?/?:!; F F 1/%/? :1>F 1//:>%%? 0=)0., ?F1? 0=)0.,@). 8A) 9 BBB5A&9*0508& 8 '),)==)0. Rebecca O. Bagley :>:0,)A80@)= 1FFF 25 28 9) .= , A ,.%%11$3?1;4>;>(;!!> >1??;/ ?;;/:; ?;?$F F $!/F 1>1$> ?$??:1! 0.0-) ?F1? 08 ' BBB5.08= '508& A ,02- .= Shareefah T. Sabur 1:!:;=5,)8GA 5 26 ') "6@,)=D. @=)0.0"# 8 , A ,.%%11F3!FF4:F:(!/?? >F!/%> 1?1:11 ?$F 1;>$;: %/;; 1!%%/ !:$$1!%! 092) ?F1? 092) 0"=' 9= 8. 9 8A BBB5'092) B8508& Robert E. Eckardt 1%??@,)GA 5@)= 1>FF 27 C @=)A A) 28 9) .= , A ,.%%11$3?1;4!;1(>!1F >F?F/> ?%>;$F F %F;% >F;?/ ?>:$F 1$//?>;!%! 0--@.)=D ?F1? , A ,.0@.=)0. BBB5, A ,."0@.=)0.508& "0@.=)0. James J. Carnovale ?1!1G-, 9) 8)A 28 9 .)08A) 28 9) .= , A ,.%%1F;3?1;4:?1(1?>% ?//!$1 ?F>/F% ;$FFF ;%?; 1>F1> 11$F! >::$>1/1 .)089 8A) 9 ?F1? @90. BBB5*@90.9-8=,)A).&508& August A. Napoli Jr. 111$F9=,A5 29 2@=D)8 =08') "A. - .=0"# 8 , A ,.%%1F;3?1;4%?1(:>%F ?/;$;/ ?;>1?? F F 1?:>F ?F:1: 1F!!1/?/;$ @9 @- ?F1? 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NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 55 HEALTHY

continued from page 1 tals in Lorain and Elyria to bring health systems’ aggressive building seen that the demand is large in that more big employers into their re- campaigns are one of the leading area. We want to provide compre- spective systems. As Kaiser, the in- factors for rising health care costs, hensive care to the patients who surance company traditionally fo- although UH and Clinic officials say want to come to the Cleveland Clin- cused on fully insured populations. they’re simply responding to the ic. It’s important for us to be in that The pitch has been so crucial to needs of the market. That said, the market.” HealthSpan’s business that she’s Clinic and UH’s new rehab hospi- He added, “The demand has been joined on sales calls by Ed tals, which based on available de- been greater than we even project- Oley, president and CEO of Mercy tails will be similar facilities, will sit ed, and this is a response to what Lorain, and Don Sheldon, president a mere 3 miles from each other. the community needed.” of UH Elyria Medical Center, or “We’re only looking out for out what was formerly EMH. Last week, patients’ care,” said Richard Han- HealthSpan, UH and Mercy hosted son, president of UH’s community Building a network a meeting for insurance brokers hospitals and ambulatory network. While the Clinic has been on a and Lorain County employers to “From our standpoint, we’re just building spree in Avon, other tout what the collective can offer. trying to provide the services our providers in the area are melding a “This is a clinical sale. This is not patients need. We want to make network designed to compete head your typical insurance carrier sale,” sure we have that continuity of on with the regional health care gi- Horvath said. “We’ve put together a care.” ant. Now that UH is entrenched in high-performing, low-cost network. Also, the Clinic’s inpatient hospi- Lorain County, for instance, the We’re meeting with brokers and tal is a particularly bold project health system has cozied up to those top employers out there. considering inpatient volumes Mercy Health and its insurance We’re creating this clinical network across the country are dwindling. arm, HealthSpan. HealthSpan last that provides access to the right The Clinic itself closed Huron Hos- year acquired Kaiser Permanente care at the right time.” pital in 2011 for that reason. Ohio — an organization that had Much of the UH, Mercy and However, Donley said the Clinic used the Clinic as its acute-care and HealthSpan sales pitch is rooted in has designed the new hospital so surgery provider for its members. what they believe is their ability to it’s not a drain on the rest of the sys- But after the acquisition, that busi- manage chronic health conditions tem, and the high volume of pa- ness shifted to UH. such as hypertension and type 2 di- tients at the health center demon- But since the acquisition, abetes. strated there’s a need for the HealthSpan has homed in on Lorain “Health care changed dramati- facility. County as its “number one” sales cally over the last two years,” Oley Food, laundry and other services priority, according to Patricia Hor- said. “As we move to an environ- at the hospital will be shared with vath, HealthSpan’s vice president of ment of population health manage- Clinic’s other West Side outposts to sales and business development. ment, it’s created a tremendous save money. This summer, HealthSpan launched amount of change. I think what “This is the first time we’ve built a self-funded insurance product you’re seeing is a response to that.” a hospital that’s supported by the along with UH and Mercy’s hospi- Some critics have argued that whole system,” Donley said.

do more things relating to the fan Cleveland being “an awesome by good people, marketable and, of experience onsite (one such up- place.” course, able to win golf tourna- MILESTONE grade for 2015: a B Spot pavilion on It also could serve as a showcase ments. the 18th green),” Wagner said. “The event for some of the company’s “We want to be surrounded by continued from page 2 generates about $850,000 for chari- look, tone and feel of the tourna- clients. winners,” Wagner said. “We don’t and ’16 (the duration of Milestone’s ty each year. ment improves immediately be- Milestone signed five golfers out have an interest in just managing three-year contract with the “That is what we hope to do,” he cause you are able to do things that of college in 2014, and the firm sets everyone.” Web.com Tour). The tournament’s said. “We didn’t do that in the first you’re not able to do otherwise. It its sights on representing “young And while Milestone wants its proceeds support Cleveland Clinic year. That is the hope in the second affords you the opportunity to have players that are going to graduate golfers to capture plenty of champi- Children’s Hospital, which was the year — that we make a real dramat- a bigger impact on charity and their way up to the PGA Tour,” onships, the company doesn’t have recipient of a $10,000 donation ic impact to charity.” worthwhile causes in the commu- Cooke said. titles for its employees. from the event in 2014. The enhanced partnership with nity.” “The more of those guys that “I believe our culture should be The Bridgestone Invitational, Rust-Oleum, which was one of the make it, business is better,” he said. developed with everyone willing to held at Firestone Country Club in Cleveland Open’s biggest sponsors Titles are for golfers, Wagner said the company is very do whatever is necessary to deliver Akron, annually donates about $1 in 2014, can help make Milestone’s selective when it chooses clients to tangible results for our clients,” million to Northeast Ohio charities. lofty goals for the event possible, not Milestone represent, and it outlines five crite- Wagner said. Cooke said the Web.com event in Wagner said. Wagner called the Rust-Oleum ria a golfer has to meet in order to “I also think titles get in the way Columbus, the Nationwide Chil- “It’s critical from the standpoint Championship a chance for Mile- form a partnership — a good per- sometimes. I’ve seen it too many dren’s Hospital Championship, that a title sponsor enables you to stone to “tell the story” about son who is intelligent, surrounded times in the past.”

McDonald Hopkins BUSINESS HOUR CHANDLER CONVERSE, Employment Law Risk Management Series SCOTT HALLORAN How to say “you’re fired!” & RYAN JEFFERS Avoiding mistakes in are proud to have represented terminating employees Thursday, November 13, 2014 Noon to 1:15 p.m. EST – Business Hour McDonald Hopkins This program in the leasing of 600 Superior Ave., Suite 2100 has been submitted to the 45,806 SF Scan to register Downtown Cleveland HR Certification Register at mcdonaldhopkins.com Institute at 200 Public Square, or call: 216.348.5400. for review . Cleveland, OH

McDonald Hopkins LLC 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)t CBRE, Inc. | Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member 950 Main Avenue, Suite 200 $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI Cleveland, OH 44113 T +1 216 687 1800 | @TenantRepCLE mcdonaldhopkins.com 20141110-NEWS--56-NAT-CCI-CL_-- 11/7/2014 12:24 PM Page 1

56 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 10 - 16, 2014

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I turned $1 million of my own LIBOR LOAN NORTHEAST OHIO PREMIER Land AUCTION money in to $60 million in 10 16+ Ac on 422 years by investing in real estate WRONGED BY YOUR BANK? REAL ESTATE AUCTION • DEC 11 but divorce has ruined me. I can WRONGFUL FORECLOSURE? Warrensville Hts. do the same for you. Employ me, or retain me. We sue banks on COMMERCIAL, INVESTMENT, DEVELOPMENT & RESIDENTIAL OPPORTUNITIES contingency. OUTSTANDING INVESTMENT OPPORTUNITY OFFERED WITH A MIN Bid only $275k* Val Sklarov R. E. Expert 68,000 SF OFFICE BUILDING RESERVE PRICE OF ONLY 847-987-0527 BoutiqueBankLaw.com $850,000 Thurs Nov 13 @ 11 7123 Pearl Rd., Middleburg Hts., OH 44130 Auction location: Currently 70% occupied with over $655,000 in Gross Annual Income Keller Williams G.C. & $225,000 in Net Operating Income (26+% Cap Rate at the published INVESTMENT COMMERCIAL reserve price of $850,000). Terrific Value-Added Opportunity! This landmark 29225 Chagrin Bl. PROPERTY PROPERTY 4 story bldg. with 2 elevators is on a 3.65 Acre site with parking for over Property on 422 near 300 cars! Current rent rates average $10-12 per square foot. Most tenants Brainard are insurance agencies, financial and service providers and general office 18% Cap Akron FOR SALE OR LEASE users. There is a food service operation on the ground floor with several * + buyer premium Retail Investment other retail opportunities available. Located minutes from all major freeways 1947 W. Market St. BEDFORD HTS. (I-77, I-71, I-480, I-80, OH turnpike) in the heart of Middleburg Heights. OHAuctions.net 96% Leased 20,000 SQUARE FEET On-Site Inspection Dates: Tuesdays, Nov 18, 25 & Dec 2 from 10:00 A.M. to 12:00 Noon. 13,000 SQUARE FEET Call Tom Fox for details 10,000 SQUARE FEET INDUSTRIAL WAREHOUSE / LOFT RE-DEVELOPMENT OPPORTUNITY OFFERED WITH A (216) 469-7081 NAI Cummins 330-535-2661 RESERVE PRICE OF ONLY 65,864 SF INDUSTRIAL WAREHOUSE BLDG. $64,500 Thomas Seaman, auctioneer [email protected] 440-232-2243 2165 E. 31st Street, Cleveland, OH 44115 (Less than $1/SF) 65,864 SF Industrial Warehouse bldg. on 1.4 Acres currently zoned C-1, Semi-Industry. Two-story, solid constructed all-brick bldg. with 15’-17’ ceilings, 5 drive-in doors, heavy power and fully sprinklered. Well located minutes from CSU, Cleveland Clinic and Cleveland’s CBD. On-Site Inspections: Wednesdays, 2:00 P.M. to 4:00 P.M., Nov. 12, 19 & Dec. 3.

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NOVEMBER 10 - 16, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 57 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Spero-Smith CEO is on watch party for Armond Budish at the Dou- ter yet, it was up 19.6% from the month’s NOVEMBER 3 - 9 bleTree Hilton Hotel Cleveland. Budish was long-term average. Detroit’s financial case the winner in the race for county executive, That means that steel mills and power With the city of Detroit ready to emerge the job that replaced the county commis- generators, among others, have been bring- The big story: Cuyahoga from bankruptcy, one of its major pension sion on which Jones served. ing in more ore, coal and other raw materi- County’s heavily Democratic funds is looking to Northeast Ohio for finan- But Jones, a Shaker Heights resident, was- als. registration helped state Rep. cial advice. n’t there for politicking. His only political It also means more business for those that Armond Budish win Tues- The city and the city’s emergency manag- role this season, he said, was doing serve the shipping industry, such as Cleve- day’s election for County Ex- er appointed by bankruptcy court have rec- voiceovers for Budish commercials. He was land’s Samsel Supply, which delivers rope, ecutive over his Republican ommended that Robert Smith, chairman just there to wish his friend Budish well. wire lines, tools and other supplies to ships opponent, County Council- and CEO of Spero-Smith Investment Advis- And he was telling all who came around at Lake Erie’s major ports. Business is brisk, man Jack Schron. Budish will ers Inc. of Beachwood, sit on the nine-mem- to check him out on Sunday night, Nov. 9, at reports Samsel president Kathy Petrick. Budish succeed Ed FitzGerald to be- ber investment committee of the Detroit Po- the Atlas Cinema Lakeshore in Euclid, where — Dan Shingler come the county’s second lice and Fire Retirement System, one of the he can be seen in the feature film, “The Um- County Executive. Cuyahoga County stood out as pension plans that is restructuring as a part brella Man,” a drama with allusions to the a sole bright spot for Ohio Democrats in what of the city’s return to solvency. Kennedy assassination. At least somebody’s was a big night for Republicans. Gov. John Ka- He would be one of five independent in- Although he has kept up his license to excited about voting practice law, acting has been Jones’ profes- sich crushed FitzGerald, winning 64% to 33%. In vestment advisers on the committee along Last Tuesday, Nov. 4, was a big day for addition to Kasich, state attorney general Mike with union and city representatives. sional focus since leaving office when the new county government replaced the old Gary Hanson — and not just because that’s DeWine, auditor Dave Yost, secretary of state Jon Judge Gerald Rosen was expected to ap- the day the executive director of the Cleve- Husted and treasurer Josh Mandel all scored big prove the city’s reorganization plan Friday, commission form of government. He has acted at Karamu House locally land Orchestra announced he would retire victories over Democratic opponents who were Nov. 7. from the post in October 2015. burdened by the weak FitzGerald at the top of the Pension fund adviser is a familiar role for and has made it to the silver screen. His movie parts so far have been modest — his Hanson, 61, has been executive director ticket. Smith, whose firm manages hundreds of of the orchestra since 2004. When he retires millions of dollars for individual and institu- character in “The Umbrella Man” is identified as “Conference Panelist #1” — but his next fall, he will have worked there for 28 Howdy, partner: BDO USA LLP, a national tional investors. He currently is a member of page at iMDB.com lists 16 credits for Jones years. He will continue to live in and be part accounting firm headquartered in Chicago and the board of trustees of the Ohio Public Em- since he left the political life in 2010. of Cleveland, “a city that I love,” Hanson one of the country’s largest professional service ployees Retirement System and is a former said. — Jay Miller organizations, will establish a foothold in Ohio member of the board of directors of the While he’s active in organizations includ- following a merger with Northeast Ohio-based Ohio Bureau of Workers Compensation. ing University Circle Inc. and Global Cleve- SS&G Inc. and its SS&G Parkland subsidiary. — Jay Miller A rising business tide land, and has spent nearly half his life in The transaction is expected to take effect Jan. 1. lifts Great Lakes boats Cleveland, the Toronto native had never SS&G partners and employees are based in the taken part in one major part of civic life here Great Lakes freighters are carrying more Cleveland, Akron, Columbus, Cincinnati and After exiting political stage, — voting. cargo than usual. A lot more. Chicago markets. SS&G will add 375 staff, includ- Jones finds voice in acting But that changed last Tuesday, as the nat- According to the Cleveland-based Lake ing 36 partners, to BDO. SS&G’s other business- uralized American citizen cast his first bal- Former Cuyahoga County commissioner Carriers’ Association, the October float, as es — SS&G Wealth Management, SS&G Health- lot in a U.S. election. Peter Lawson Jones made an appearance shipping tonnage is called, was up 14.7% in care and Paytime Integrated Payroll Services — “I was proud to get the sticker,” he said. last Tuesday night, Nov. 4, at the election October from the like month last year. Bet- are not part of the merger and will continue to — Scott Suttell operate independently of BDO.

Go for cover: CoverMyMeds, a health care information technology company in Twinsburg, WHAT’S NEW BEST OF THE BLOGS received what it called “a growth investment” by Excerpts from recent blog entries on affordable option for workers.” Francisco Partners, a California private equity CrainsCleveland.com. In the latest sign of a possible shift, The firm focused on investments in technology and Journal reported, WellPoint Inc. said its technology-enabled services businesses. The ‘Zombie’ apocalypse small business-plan membership is shrink- companies didn’t disclose the size of the investing faster than expected and it has lost ment. Francisco Partners says it pursues “invest- It’s kind of refreshing to read a story about 300,000 people since the start of the ments with transaction values ranging from $50 about so-called “zombie foreclosures” and year, leaving a total of 1.56 million in small- million to over $2 billion across a wide range of find that Cleveland is cited as part of the an- group coverage. The insurer had projected transaction types.” CoverMyMeds produces soft- swer to the problem, rather than a main a five-year migration to “significantly re- ware that automates the medication benefit contributor to it. duce” small-employer membership, but it process to reduce administrative waste. A zombie foreclosure occurs when the now thinks the dropoff will be compressed owner leaves the property, but the bank has into two years. He’s sticking around: The Cleveland Indi- COMPANY: yet to take possession of it. The Journal said Cleveland-based Med- ans signed manager Terry Francona to a con- Diebold Inc., North Canton MarketWatch.com reported “there were ical Mutual “is seeing the strongest shift tract extension. The deal is for the 2017 and 2018 117,298 owner-vacated foreclosures nation- away from offering health benefits among seasons, and includes club options for 2019 and PRODUCT: wide in the third quarter of 2014, represent- the smallest employers with just two to four 2020. Financial terms weren’t disclosed. Fran- ing 18% of total properties in foreclosure, workers.” The company “is working to ease cona, 55, was hired by the Tribe on Oct. 8, 2012, Responsive Banking platform down from 141,406 in the second quarter of the transition for companies that want to 2014 (17% of all foreclosures) and down and has led the Indians to their first consecutive Diebold says it’s blending “branch trans- move from a group plan to individual cov- 152,033 (23% of foreclosures) in the same winning seasons since 2000 and ’01. The Tribe is formation and omni-channel experience” erage.” period last year,” according to data released 177-147 since 2013, a .546 winning percentage with the Responsive Banking concept, “That’s the best way to maintain the Oct. 30 by RealtyTrac. that ranks fifth in franchise history for a manag- which the company rolled out last week at membership,” Dan Polk, a vice president Contrary to this national trend, Market- er’s first two seasons. Money20/20, a trade show in Las Vegas. who oversees small-group business, told Watch.com reported, “there were increases The concept is a standalone banking plat- The Journal. He noted that Medical Mutual in owner-vacated foreclosure in the third form with four connected “experience is retaining “a very high percentage” of On the way: University Hospitals broke quarter in 16 states, including New Jersey, zones” that are “meant to inspire future dig- those whose employers are dropping plans. ground last Wednesday, Nov. 5, on a $28 million where zombie foreclosures surged 75% outpatient health center and freestanding emer- ital-to-physical convergence banking capabilities,” according to the company. year-over-year, North Carolina (up 65%), gency department in Broadview Heights. The fa- Oklahoma (up 37%), and New York (up Zero-waste facility cility — plans for which were announced in June For the platform, Diebold says its R&D In- cubation team created features that include: 30%) and Alabama (up 29%).” The New York Times routinely gets to de- — is expected to be completed by fall 2016. The Touch surfaces and sensing devices: Daren Blomquist, vice president at Real- clare trends that are invisible to most of us. 51,000-square-foot health center and emergency Meant to attract passersby, “smart” glass tyTrac, told MarketWatch.com that a “short One recent exhibit was do-it-yourself taxi- department will sit on more than 6 acres visible and video tower walls “feature dynamic and efficient” foreclosure process prevents dermy, and the paper found a Clevelander, from Interstate 77 and can be accessed from the content management, use near-field com- zombies. Cities could learn from Cleveland, Mickey Alice Kwapis, 23, to provide an ex- state Route 82 interchange. munications, location-based proximity sen- he noted. ample. sors and motion detection to securely iden- “The best antidote for a zombie foreclo- Kwapis holds classes in unlikely places Just for fund: Cleveland-based private equi- tify consumers, monitor traffic and sure infestation is a pro-active land bank like tattoo parlors and restaurants. “As long ty firm Blue Point Capital Partners closed its personalize marketing content.” program like that in Cleveland and, more as you clean up afterward, there’s nothing third fund, at $425 million. The fund, Blue Point Queue management: Consumers “have recently, Chicago designed to aggressively to say you can’t hold a taxidermy class any- Capital Partners III L.P., is part of more than $1.2 the ability to ‘get in line’ for a session with a take possession of vacant foreclosures or where,” she told The Times. “After all, a rab- billion raised in capital across three institutional virtual teller, remote teller or to withdraw demolish them,” he said. bit has less bacteria than a chicken.” funds. Blue Point originally targeted $400 million ‘fast cash’ all from their mobile device or the In addition to teaching her students how for the fund, consistent with the size of its two concept’s exterior touch screen panels.” To market they will go to stuff the animals, Kwapis instructs them previous funds. Blue Point invests in manufac- Virtual tellers: An avatar “provides virtual on how to prepare the meat for eating. turing, distribution and service businesses with teller services for customers needing to con- A Medical Mutual of Ohio executive was Then this part gets kind of gross: “She also quoted in a Wall Street Journal story that between $20 million and $220 million in revenue. duct more complex transactions by employ- shows them how to preserve the organs in said small companies “are starting to turn The fund will continue to focus on investments ing natural language recognition, intelligent jars (if that aesthetic appeals to them) and away from offering health plans as they seek in the lower middle market. assistant, directional audio and advanced how to clean the bones to make jewelry or cash-in/cash-out technologies.” to reduce costs and increasingly view the grind them up for fertilizer. ‘Nothing goes to For information, visit www.diebold.com. health law’s marketplaces as an inviting and waste,’ she said.” 20141110-NEWS--58-NAT-CCI-CL_-- 11/5/2014 3:07 PM Page 1

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