VOL. 37, NO. 50 DECEMBER 12 - 18, 2016

Business of Life Source Lunch Publications’ news is Andrew Brickman a big deal in a few local discusses real estate, neighborhoods. Page 19 Tinseltown. Page 20 BEACON BeachA       Cliff  B C | F Docket’s future CLEVELAND BUSINESS Specialty court isn’t dead yet. Page 7

A PHILLY NATIVE AND A REALCLEVELANDER DECIDEESTATE TO MAKE DEVELOPMENT ROCKY RIVER THEIR HOME. Get to know the Weinberger Forestfamily better on pages 32-33. City takes di cult, necessary step ‘Clawback’ By STAN BULLARD ing families the Millers and Shafrans point with investors for at least  ve have used to control the company years. It was an issue even before is sought [email protected] since it went public in 1961. Moreover, 2015 when Michael Bilerman, Citi @CrainRltywriter the national mega-developer of today REIT analyst, asked at the compa- is descended from a 96-year-old local ny’s annual REIT conference about on several Liken Ratner family consideration of company that is older than the iconic the dual share structure and called it giving up its minority shareholder con- symbol of the city which, at least for “a distraction” from the rest of the tax credits trol of Forest City Realty Trust to a yards- now, holds its headquarters. company’s story. And in the end, the wide crack erupting across dozens of Although Scopia Capital Manage- founding families acceded to the By JAY MILLER  oors on the outside of Terminal Tower. ment LP of New York, which holds weight of Wall Street.  e Class B Forest City leadership  at is how epic undertakings are at 17.9 million shares, some 7% of the shares held by members of the after Charles Ratner [email protected] Forest City Realty Trust as the Ratner company’s shares outstanding, took founding families have 10 votes for @millerjh family agreed Tuesday, Dec. 6, to ask the push publicly to update the each director compared to one for Who will take over when longtime shareholders to collapse the dual-share company’s governance to one share, each Class A shareholder. head Charles Ratner retires? We chart While most Northeast Ohio com- structure the Ratners and other found- one vote in August, it’s been a sore SEE RATNER , PAGE 22 the succession plan. Page 23 panies are meeting their commit- ments under financial incentive agreements with state and local agencies, a handful are failing to HEALTH CARE achieve the capital investment or job creation goals they agreed to, according to recently released re- ports. Government economic develop- ment agencies annually review the performance of their grantees and may reduce or rescind a tax credit or raise the interest rate on a loan if a company falls short of its commit- ments. UH and Metro  e most comprehensive report is one issued late last month by the of-  ce of Mike DeWine, the Ohio attor- feel e ects of ney general.  at report, the “2016 Report to the General Assembly on Compliance with State Awards for trauma center Economic Development,” reviewed 329 awards made by the Ohio Devel- opment Services Agency (ODSA) and found that companies were meeting Impact has been signifi cant their commitments in 84.8% of the awards. since UH added Level 1 unit  at report found that 11 North- east Ohio companies receiving in- iStock centive agreements were not meet- ing the goals of those agreements. By LYDIA COUTRÉ ing two Level 1 centers will be mea- ly surprised that the center, which said, referencing MetroHealth’s re- For example, AlSher Titania LLC, suring outcomes. Data for that won’t opened Dec. 1, 2015, will far surpass cently announced plan to replace its a Cleveland maker of titanium pig- [email protected] be available until early next year. that, having admitted nearly 1,500 pa- aging patient towers with a new hos- ments, received a $150,000 infra- @LydiaCoutre “My concern — and this needs to tients through October. pital and move forward with its cam- structure grant from ODSA in 2011. be seen — is what is the trauma mor- MetroHealth saw a 27% drop in pus transformation on its own credit. In accepting the grant, the com- About a year after University Hospi- tality rate?” MetroHealth president trauma activations, which Boutros  e trauma numbers have reached pany committed to hiring 201 peo- tals opened the region’s second Level 1 and CEO Dr. Akram Boutros said. said translated to a $35 million loss in a plateau and have been stable for ple. adult trauma center, the initial e ects “What’s happened to it in our region. revenue, much higher than the $20 the past six months, Boutros said. According to the attorney gener- on both UH and MetroHealth — previ- Did it get better?  at’s what the million it predicted. But he is quick to In January through October of this al’s report, the company created ously the only such trauma location — promise was.” note that the system has grown in year, MetroHealth had 4,188 trauma only one job. As a result, the state have been greater than expected. For a Level 1 designation, UH’s trau- other ways so the loss won’t hurt the activations — meaning people it saw agency is seeking the return of the UH was surprised by how many ma center needs to see a minimum of organization.  ough it’s not without and discharged from the emergency grant, called a “clawback” in the patients it saw, while MetroHealth 1,200 patients, which the system was its issues, the system can handle the department, or admitted — com- economic development world.  e took a greater hit to its  nances than con dent it could reach, said Dr. Mi- loss, he said. pared to 5,737 for the same time span report notes that the repayment is expected. chael R. Anderson, UH chief medical “We as a hospital can deal with the in 2015. due Dec. 15.  e true test of the success of hav- o cer. But he said they were pleasant- dollars — clearly we can,” Boutros SEE TRAUMA , PAGE 21 SEE TAX , PAGE 22

Entire contents © 2016 by Crain Communications Inc. Middle Market report Assistance funds aid workers during trying times. Page 15 Adviser, Tax Tips Page 16 Third Federal really buys into the act of giving back. Page 18 THANK YOU for a Great Season! See you in 2017

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ixcenter.com One I-X Center Drive IX CENTER 216.265.7000 Cleveland, OH 44135 CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 3 UH uses crowdfunding for hydration device By LYDIA COUTRÉ How the device works get it at the same rate as those in the couple of weeks, Rose expects. But it developing world, but kids here have still needs clinical trials, further mar- [email protected] People in need of non-oral hydration currently are given an IV, which requires a access to health care to get an IV to ket research and a commercial part- @LydiaCoutre trained medical professional. An individual with little to no medical training rehydrate. ner. would be able to use this device and help rehydrate children or adults. An increase in oral rehydration “We’re trying to identify the cor- Dr. Johnie Rose, assistant profes- solution in the world’s poorest set- rect commercial partner, because sor at Case Western Reserve Univer- 1. The device is placed on the tings has helped to decrease diar- there’s some different applications sity, believes the technology he’s de- back or abdomen and a silicone- rhea-related mortality in children besides the Third World,” said Ste- veloped could help people save the like material (A) covering the base under 5 from 4.6 million deaths in phen Behm, UH’s director of tech- lives of thousands of children around is adhered to the skin with an 1980 to 760,000 now, according to nology management. “We’re trying the world — once he can get it into adhesive. 2013 data from the World Health Or- to identify and get a better under- their hands. ganization. standing of the markets to identi- “Right now, we’re in a holding pat- e subset of the sickest children fy.” tern because there’s not the nanc- for various reasons aren’t helped by at could include rst respond- ing to do those trials,” said Rose, oral rehydration, but need parenteral ers, military, the elderly or even for who’s also the director of the Preven- or non-oral hydration, such as an IV. use within hospitals. tive Medicine Residency at CWRU e problem with that, of course, be- ere are a lot of situations with and University Hospitals Cleveland comes nding someone who can both kids and adults in the develop- Medical Center. place an IV — especially in very re- ing or developed world in which the So for the past few months, UH has A mote locations. need for an IV requires a higher level turned to the community in its rst Rose turned to subcutaneous re- of and more expensive care, Rose attempt at crowdfunding to support hydration, which means giving uids said. is device could help address research. through the skin. that. ough the eort has been under- 2. When the wings are pinched rough that, the individuals ad- For some of the domestic applica- way since September, the team just together, the devices pinches the ministering it can’t give uids as fast, tions, the device would probably recently renewed its push with a skin and sticks the patient with a but they don’t have to hit a vein. have more features, such as anes- more targeted eort to raise dollars needle (B) to be able to begin erefore, they don’t need to be a thetic on the adhesive. But the most to support Rose’s device, which indi- administering fluids. highly trained medical professional basic design of the device for the de- viduals with little or no clinical train- in order to help rehydrate these sick veloping world would cost just $10 to ing could use to rehydrate sick chil- children. $15 to make. dren. Besides, a lot of people don’t need If crowdfunding brought in about If the crowdfunding is successful, a large amount of uids really quick- $50,000, Rose could start on some of UH plans to roll out the strategy more ly. ey just need to get uids to re- the trials. Behm estimates they’d broadly to support other researchers lieve and sustain them. need a couple hundred thousand to and investigators, said Marla “So the idea then became, well, get it to market. Schmidt, a grant and contract spe- B can we go a step further and make In the rst few months, the cam- cialist for UH. this something that’s extremely easy paign hasn’t raised much, Schmidt In her primary role, she handles to use for people who are very mini- admits. But they’re learning. ey’re agreements with pharmaceutical mally trained, if at all,” Rose said. working to revamp the eort with companies and industry-funded through the long process of “It occurred to me that you’re vac- He has developed a small device more social media approaches and a clinical trials, but she does see some grant-writing that could delay their cinating a very large number of peo- that will come with easy-to-use in- more targeted strategy. investigator-initiated studies like work. ple to prevent death in a small num- structions and pictures. An individ- Schmidt said she doesn’t yet know Rose’s. People turn to crowdfunding for ber of people who really get serious ual can place the device on the ab- what this could mean for getting oth- ese researchers have great ideas independent movie projects, music Rotavirus,” he said. domen or back of a child and er devices to market. they want to develop, she said, but careers or charitable eorts. Why not at’s not to say the vaccines ar- simply press the release. It will si- “We just are kind of guring it out they spend a lot of time writing grants research? en’t worth it, Rose said. He just want- multaneously pinch up the skin as we go along,” she said. “We’re hop- and searching for funds. Rose initially got his idea while re- ed to nd a solution to the subset of and stick in a needle to begin deliv- ing it will be a great success. ... We She’d see them get small funds and searching vaccination programs for the sickest children who ultimately ering fluids. really feel like it could be very suc- pots of money, and began thinking of Rotavirus, a diarrhea-causing patho- die from a virus that doesn’t have to e prototype is developed and cessful as long as we get the right alternative means to help them gen. be fatal. Children in the United States should be receiving a patent within a strategy.”

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16NOP0175 Business Ad 6x6.indd 1 8/25/16 1:04 PM PAGE 4 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS LEASED!!! NEO groups are strongly 8037 BAVARIA ROAD TWINSBURG TOWNSHIP, OHIO against tool steel tari By RACHEL ABBEY McCAFFERTY hearing on this case on Nov. 30. Dan- In a letter to the trade commission, iel Mull, executive vice president for the two associations ask it to contin- rmca [email protected] sales and marketing of ArcelorMittal ue to treat tool steel and the tool steel @ramcca erty USA, spoke to the broader need for industry as separate from steel at these tari s. large — as it has for more than 35 It may feel counterintuitive for do- “While my company, and other years, the letter contends. mestic industry to lobby against gov- U.S. producers, manufacture tool It goes on to note that tool steel’s ernment tari s on imported goods. steel, X-70 and other specialized composition gives it “high wear resis- But that’s exactly what’s happen- types of plate products, please recog- tance, toughness, and hot/red hard- ing now in the trade case on carbon nize that the bulk of subject imports ness” and “relatively low ductility Newmark Grubb Knight Frank and alloy steel cut-to length plate are not these specialized products,” and weldability” compared to other is pleased to announce the signing from a variety of countries. It’s not Mull said in the testimony as written. steel plates, which is necessary for its that the Precision Metalforming As- “ArcelorMittal USA faces intense end use of cutting and shaping other of a lease for 60,000 SF of space sociation and the National Tooling competition every day in the U.S. metals. And it’s already more expen- Visit and Machining Association are an- market from all of the subject coun- sive than the other kinds of plate at 8037 Bavaria Road in Twinsburg. TerryCoyne.com ti-tari . ey just want what they re- tries in basic types of cut plate, like steel. Or call Terry at fer to as “tool steel” to be exempt carbon structural steel plate. We also e tooling industry knows that 216.453.3001 Kristy Hull represented the tenant. from this particular case. face intense import competition in when the cost of raw materials go up, Tool steel, they say, is highly spe- it makes U.S.-made tooling and dies cialized and low volume, and U.S. less competitive, Gaskin said. A lot of 1350 Euclid Ave., Suite 300 producers don’t make enough to A tari would just tooling is already being imported, Cleveland, Ohio 44115 meet their needs. A tari would just and he fears that this could lead to make the steel and, in turn, the tool- make the steel and, more imports. ing more expensive, which could Gaskin said this trade case is an ex- harm the companies making it. in turn, the tooling ample of how trade laws, while use- If that is indeed the case — though more expensive, ful, can cast too wide a net. e cur- the number of tool and die makers in rent implementation doesn’t allow the U.S. has fallen — there are still a which could harm small segments of business to be pro- lot of employees who would stand to tected in these extensive cases. be a ected, especially in Northeast the companies “We’re the drive-by shooting,” he Ohio. As of May 2015, the last avail- said. able data from the U.S. Bureau of La- making it. Gaskin isn’t optimistic that the bor Statistics, there were almost groups’ e orts to stop a tari on tool 75,000 tool and die makers in the steel will be successful. If it’s not, Til- KEEP YOUR REAL ESTATE country. Ohio has the second-high- some of the lower-volume special- stone said companies’ protability est number of tool and die makers ized grades, where we used to be able would be signicantly a ected, and employed, falling only behind Michi- to count on better prots. We have that some of the smaller ones would WARM WITH THE RIGHT LOAN gan, and the Cleveland-Elyria region been losing sales to lower-priced close altogether. ose companies is the third-highest-ranked metro- subject imports across all types of cut don’t have a lot of room for price in- CBS will fi nd the right loan structure for your real politan area in terms of employment plate.” creases, he said. estate investments with our team of credit unions. for these workers. Bob Insetta, director of specialty Steve Peplin, CEO of metal stamp- e U.S. Department of Commerce plate for ArcelorMittal USA, said in ing company Talan Products Inc. in has made armative preliminary de- the testimony the company makes Cleveland, said these tari s could in- terminations in most of the anti- almost every type of cut-to-length crease the cost of doing business in dumping (when a company is selling plate the market needs, including the U.S. beyond just the tool and die a product at less than fair value) and tool steel, and that they’re all “part of makers. While he’s not in the busi- countervailing (when it’s receiving a broad continuum of the same prod- ness of making tooling, he has to buy nancial assistance from a foreign uct.” it for jobs. And if the cost of the tools government) portions of the case. increases, he said he has less of a On the countervailing side, the Plenty to go around? chance of getting the job. at’s be- commerce department preliminary cause the tool cost is the rst factor in determined China was subsidizing But the Precision Metalforming determining a customer’s startup Contact Jonathan A. Mokri these products, while Korea was not. Association of Independence and the cost, and more expensive tooling 440.526.8700 • [email protected] Commerce preliminarily determined National Tooling and Machining As- makes domestic production less companies from Austria, Belgium, sociation of Cleveland don’t seem to competitive, Peplin said. And, if the www.cbscuso.com China, France, Germany, Italy, Ja- believe it’s enough. tari s raise the cost of imported tool The Power of Collaboration SM pan, Korea, Taiwan, Brazil, South Af- William Gaskin, president of the steel, but not the cost of imported rica and Turkey were all dumping Precision Metalforming Association, tooling, it could make foreign pro- goods in the U.S. said tool steel is getting caught up in ducers of tooling more competitive Final determinations from both this case because it has a similar overall. the commerce department and the chemistry to the other metals in- ese kinds of tari s could lead to International Trade Commission, volved. some pain in the near-term, but there which determines whether there is “But tool steel is not being dumped needs to be a level playing eld, said HERE injury to U.S. industry, for most are in the U.S. in the same way,” Gaskin Joe Tenebria Sr., president and owner expected in 2017, with dates for the said. of Myers Precision Grinding Inc. in nal determinations starting in Janu- In fact, he said, there’s a shortage Cleveland. Myers Precision serves a WE GO ary and running through May, ac- of tool steel in the U.S. Since it’s a wide variety of industries and makes cording to the commerce depart- low-volume product, domestic pro- products ranging from tooling to fas- ment. (e department was expected ducers aren’t making a lot of it, and teners to medical parts, so it doesn’t AGAIN. to make nal determinations in the the industry needs imports to sup- use much tool steel. cases against Brazil, South Africa and plement their supply. Tenebria Sr. doesn’t want to see his The health Turkey at the end of November, ac- Tool steel is already expensive, peer companies harmed, but these cording to a fact sheet. e commis- said Dave Tilstone, president of the kinds of measures could have been insurance sion was expected to rule on those National Tooling and Machining As- helpful decades ago when the U.S. countries in January.) sociation, and increased costs are was making more tool steel, he said. tides are e cases were brought by Arcelor- only going to get passed along to the He expects to see more tari s imple- changing Mittal USA LLC, Nucor Corp. and tool and die makers. And because it’s mented with the transition to a Re- SSAB Enterprises LLC. ArcelorMittal, not a commodity, it’s not easy to sub- publican president. once more. which has a substantial plant in stitute one material for another. e “Protectionism isn’t the best, but Cleveland, testied at the Interna- steel in this case is specically used there needs to be some kind of tional Trade Commission’s nal for dies and molds, he said. blend,” Tenebria said. PROTECTED? CALL US. 216 350 5052

Volume 37, Number 50 Crain’s Cleveland Business Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside (ISSN 0197-2375) is published weekly at 700 West Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information St. Clair Ave., Suite 310, Cleveland, OH 44113- and delivery concerns send correspondence to Audience CLEVELAND BUSINESS 1230. Copyright © 2016 by Crain Communications Development Department, Crain’s Cleveland Business, 1155 Inc. Periodicals postage paid at Cleveland, Ohio, and Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to 700 W. St. Clair Ave., Suite 310, at additional mailing o ces. Price per copy: $2.00. [email protected], or call 877-824- 9373 (in the U.S. and Canada) or (313) 446-0450 (all other Cleveland, OH 44113 We Protect. You Grow. POSTMASTER: Send address changes to Crain’s locations), or fax 313-446-6777. Phone: 216-522-1383 Cleveland Business, Circulation Department, 1155 www.crainscleveland.com LEARN MORE J www.armadarisk.us Gratiot Avenue, Detroit, Michigan 48207-2912. Customer service and subscriptions: 1-877-824-9373. 877-824-9373 Reprint information: 212-210-0750 CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 5 Huge 3D printer is big get for Akron firm Additive Engineering Solutions is switching gears by buying machine that can print large parts

By RACHEL ABBEY McCAFFERTY manufacturing at Caterpillar, and facility maintenance, Bader said. Bader invited him to do a presenta- at’s allowing Additive Engineering rmcca [email protected] tion at OGS Industries, his family’s Solutions to run very lean. Ocially, @ramcca erty Akron-based metal stamping and the only employee outside of Bader fabrication company. OGS immedi- (who is also still working at OGS) and A new company in Akron wants to ately found an application for 3D Schmidt is senior process engineer bring 3D printing to the region in a printing in its shop, and Bader Clark Patterson. Tom Bader is serving big way. thought similar companies in the re- as chief nancial ocer when need- Literally. gion could use the same kind of in- ed. Additive Engineering Solutions formation. e two led the paper- e BAAM machine is expected to has been operating as a consulting work to start Additive Engineering arrive near the end of December. rm since August 2015 but is getting Solutions as a consulting business in Schmidt and Patterson have been ready to switch gears to production August 2015. But when Schmidt traveling to Cincinnati Inc. and Oak with the addition of a Big Area Addi- learned about the BAAM printer, the Schmidt Bader Ridge National Laboratory to make tive Manufacturing machine from two decided to look into it. sure they’re comfortable running the Cincinnati Inc. e machine is prob- at wasn’t always the goal for Ad- at a company like Additive Engineer- machine. ably best known for printing a driv- ditive Engineering Solutions. In fact, “Our goal is when it ing Solutions will be a good thing for “Our goal is when it drops, we’re able car at the International Manu- when the company got started, the drops, we’re ready Cincinnati, Ne said. e company ready to go,” Schmidt said. facturing Technology Show back in goal was explicitly “to not buy a gets “lots and lots of people” calling it Tim Fahey, vice president of in- 2014, said Austin Schmidt, partner printer,” Schmidt said. Additive man- to go.” to print parts, he said, a service it will dustry and innovation at Team NEO, and president of Additive Engineer- ufacturing is a competitive market, perform but not its main purpose. said Additive Engineering Solutions’ ing Solutions. he said, and it’s dicult to stand out. — Austin Schmidt, Additive at interest demonstrated a need addition of the BAAM machine will It’s much larger, and faster, than But the opportunity to have “ rst Engineering Solutions president to Bader. give the company a “unique ability,” any 3D printers on the market, mover advantage” was very attrac- “We kind of had these pre-estab- as 3D printed parts are usually limit- Schmidt said. And since most of the tive, Bader said. lished sales pipelines,” he said. ed in size. It also adds another addi- BAAM machines on the market ar- e two pitched the idea to Tom, supply chain, customers and jobs. Bader said there are already a few tive manufacturing capability to en’t easily accessible to companies, Bader’s uncle, and John, his father, Additive Engineering Solutions’ jobs lined up, though the company Northeast Ohio and enhances the Schmidt said he saw an opportunity who are, along with Bader and BAAM machine is the 11th one the declined to name any speci c cus- region’s reputation as a 3D printing for a contract manufacturer. e fo- Schmidt, partners in the business. company has sold, and the rst at a tomers. Additive Engineering Solu- hub. cus at Additive Engineering Solu- After Schmidt, Bader and his uncle service bureau, said Rick Ne, BAAM tions has also been busy setting up its Richard Lonardo, advanced man- tions will be 3D printing tools and visited Cincinnati Inc., the manufac- sales manager for Cincinnati Inc. e new facility at 990 Evans Ave. in Ak- ufacturing program manager at the molds for dierent industries, said turer of the machine, and Oak Ridge others are in universities, labs or ron, which it is renting from OGS. To- Youngstown Business Incubator, said Andrew Bader, one of the partners National Laboratory, which devel- large companies, he said, with the tal startup costs, including the BAAM the company’s focus on large-format who’s overseeing business develop- oped the technology, in May, the de- latter using the machines for their machine and supporting equipment tooling in particular will give it a ment. cision was basically made. own purposes. like a 5-axis CNC router, are about unique asset. ere’s a lot of tool Additive Engineering Solutions re- e company placed the order for Ne said typical 3D printers can $1.5 million, Schmidt said. manufacturing in the state, and peo- ally got its start in the summer of the machine in early July. In Septem- print parts that t in a shoebox. Additive Engineering Solutions is a ple are looking for ways to make 2015, when Schmidt and Bader met ber, Schmidt began working at Addi- BAAM can print parts that are 5 1/2 spino of OGS, but the new company those tools faster and more complex. at a young professionals event. tive Engineering Solutions full-time feet wide, 13 feet long and 6 feet tall. is using the more established one for “We think they’re going to be a big SchmidtLeonard wasHPM still Final_Layout working in 1 additive 12/5/2016 and9:52 started AM Page setting 1 up the company’s And having one of their machines functions like human resources and hit,” Lonardo said.

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e mourn the loss of our esteemed hospital systems and major league sports Wcolleague and friend, Irvin A. franchises. Moreover, Irv achieved Leonard, devoted family man, humanitarian additional kudos as Jones Day’s Chief and revered business leader. Financial Partner, chairing the Firm’s Irv was a man of faith, wisdom and conviction; Investment Committee, and leading the a student of history and a philosopher, who investment policies and strategies for man- taught others to live by simple principles: “do agement of the Firm’s sizeable benefit and the right thing” and “don’t be afraid to fail.” contribution plan assets, all with consistent He was a fierce advocate for equality, accept- outperformance of most others. Irv joined ance, and support for people in need and Emigrant Bank in 2008 and served as Senior these were the core of his philanthropic Advisor of Emigrant Bank and a Director of endeavors. These included his role as Past the New York Private Trust Company. President and Trustee for Life of the Jewish In addition, Irv co-founded HPM Partners Education Center of Cleveland, Executive and served as Managing Member, member of Committee of the Greater Cleveland Chapter the Investment Committee and Partner in the of the American Red Cross, and service to Cleveland office. He was a consummate numerous civic and community organizations manager, negotiator, leader, and advisor in Cleveland. and his legacy will also live on in the many colleagues he nurtured and mentored Irv was an accomplished lawyer, business- throughout his career. man and entrepreneur. He earned his B.A. from the University of Pittsburgh, Phi Beta We remember the intelligence, the warmth, Kappa, magna cum laude and Juris Doctor his infectious laugh and the humorist, who from New York University. Irv’s distin- shared his clever eye for the ironies of guished legal career included Law Clerk to politics and human behavior. the Judge, United States District Court We remember the loving husband, father and [southern District], New York, New York and grandfather and extend our condolences and a distinguished 38-year career at Jones, Day, appreciation for sharing Irv with us. IRVIN A. LEONARD Reavis & Pogue, Cleveland. Irv’s practice expertise included all aspects of corporate 1944-2016 and business law, representation of nonprofit “If we value the pursuit of knowledge, we must be New York Private Bank & Trust free to follow wherever the search may lead us.” HOOVERMILSTEIN Adlai Stevenson HPM Partners PAGE 6 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS

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By JEREMY NOBILE Nonetheless, Krieg expects private equity will play an even greater role in [email protected] their model moving forward, likely @JeremyNobile sourcing at least half the work in RI- BA’s mix. is is partly because of SOLD e relatively young bene ts con- what’s happening in the private equity sulting practice of Risk International market right now, which has been Services Inc., one of the largest risk drawing increased investor interest as management consulting businesses returns remain strong. As dry powder in the country, has found its footing builds and more dollars chase fewer in the Fairlawn-based company’s deals, Krieg anticipates a growing ap- business model. petite for bene ts consulting work. And with auspicious plans for Risk “ e deals are becoming more International Bene ts Advisors to competitive,” Krieg said. For all your Commercial Real Estate needs, please contact: double its own revenues in the com- “You have these compass sourcing Gregory B. West Nathan Osborne ing year alone, particularly by lever- groups that are charged with looking 216.861.5379 216.861.5792 aging some untapped opportunities at how they can improve the  nancial [email protected] [email protected] HannaCRE.com in the private equity sector — and operations of the business. With that, some business in its native Northeast whether through sourcing groups or Ohio — the greater Risk International “We are going to overall interest within the deal teams umbrella is well-poised to see a con- bringing better outcomes to major tinuation of its already consistently make more e ort to spends,” bene ts will be a high prior- strong performance. market ourselves in ity for most employers, Krieg said. He Eric Krieg, a former senior vice likened their work to that of forensic president at Oswald Cos., established both Ohio and accountants digging through balance the business commonly known inter- sheets looking for fat to trim. nally as RIBA in 2014. Northeast Ohio in Hiring consultants like RIBA is no While executives wouldn’t dis- new strategy in the for-pro t invest- close actual revenues, Krieg said that 2017.” ment sector. as RIBA closes out its  agship three- What’s emboldening RIBA’s out- year plan, the business is exceeding — Eric Krieg, RIBA founder look more is the fact that this three- its revenue targets by 75%, well out- year-old company hasn’t connected performing initial expectations. of risk management businesses, with as many  rms as it would like. e goal to double revenues in which helped lift overall revenues Risk International is a large U.S. 2017, and again in 2019, partly comes and support companywide growth as business with global connectivity from that energy carrying through the business bolstered its two inter- through its o ces in England and into the coming years. national o ces. Vietnam. Yet, surprisingly, Krieg said YOU’VE GOT A LITTLE “( ose projections) come from About 35% of Risk International’s the Northeast Ohio native business the momentum of a growing busi- overall growth this past year came currently has no relationships with SOMETHING STUCK IN YOUR TEETH. ness and the ability to take all the from RIBA, Krieg said. private equity  rms in this region. At Manchester RBG, we’re honest. We notice the small details, seeds that have been planted and see Private equity has been a major at’s why there’s a major focus for and we’re not afraid to tell our clients the truth to help them improve. them come to fruition,” Krieg said. source of business for the overall Risk the business to capitalize on un- Our full-service management advisory firm will work with you to RIBA currently comprises seven International operation — and the tapped opportunities in this region, improve business performance, tough fixes and all. people, but Krieg expects to add four consulting industry in general — as which has quite a strong private pres- more people in 2017 as the business  rms look to consulting businesses of ence of its own. expands. its sort to cut costs of portfolio compa- “Our business has grown signi - Call 216-302-4769 to learn more. Risk International itself has grown nies without adding headcount. cantly outside this area. Many of the Or visit www.manchesterrbg.com/crains about 300% in the past  ve years, a Having an independent structure large  rms we are doing business with period that has seen Dave O’Brien has been quite useful in establishing are in places like Washington D.C., join in 2012 as chairman with the business early on, Krieg said, and New York City and Boston,” Krieg said. goal of growing the brand. A couple seems to be helping their services reso- “We are going to make more e ort to years after O’Brien joined, the com- nate in the marketplace. Private equity market ourselves in both Ohio and pany made its  rst two acquisitions has helped source some work as well. Northeast Ohio in 2017.”

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By JEREMY NOBILE business-friendly by giving those of the commercial docket, or com- years, which would “unnecessarily cases priority. “The judges on the mercial track as we suggested, that (limit) a large pool of potentially [email protected] A special docket also would help local court are in a could be reinstated in Cuyahoga qualied candidates,” they argued. @JeremyNobile build experience for sitting judges County.” Paul Harris, co-chair of the busi- and foster more predictability for at- better position to ose who commented on the ness litigation practice group at Ul- Cuyahoga County’s commercial torneys working cases. proposed changes generally sup- mer & Berne LLP, was among the docket may be dead, but it won’t lie In general, judges seem to want assess the qualities ported the bulk of them, including many who voiced personal support down. more autonomy over how the docket members of the Lucas County Com- for the changes, conveying a senti- Nearly two years have passed since operates, including the selection of and abilities of the mon Pleas Court, which is one of the ment that attorneys simply want to Cuyahoga County Common Pleas judges. Attorneys, meanwhile, just courts that participated in a pilot see the docket restored in some form. Court judges disbanded the com- want what they saw as a useful tool judges to take on program for the docket (like “My understanding is that the new mercial docket, yet it remains un- back at their disposal. Cuyahoga County) and continues to proposed rules are meant, at least in clear whether the tool universally e high court highlighted some of the challenge of operate a commercial docket today. part, to address some of the concerns appreciated by commercial litigators, the proposed changes when it re- “ e proposal to allow the local that led to the suspension of the and their business clients, could be quested public commentary. the commercial court to make the selection of the commercial docket in Cuyahoga restored in some form. One key proposed amendment commercial docket judges is the big- County,” he wrote. “ … I’ve heard fa- More developments could come in would give local judges more discre- docket.” gest, and most welcomed, change to vorable opinions of and experiences early 2017, though. tion over what actually constitutes an the rules,” wrote Lucas County ad- with the commercial docket in e review process is in the hands appropriate commercial case. — Lucas County administrative judge ministrative judge Gary Cook. “ e Cuyahoga County, and I was person- of the Ohio Supreme Court, which Another would shift the responsi- Gary Cook judges on the local court are in a bet- ally disappointed to see it go.” oversees the state’s specialty courts. bility of appointing sitting judges at ter position to assess the qualities Ciano said it’s hard to say whether Any changes would aect how the each common pleas court from the and abilities of the judges to take on fewer cases have actually been led court operates in any Ohio common chief justice to the general division “It’s not surprising that the pro- the challenge of the commercial since the local docket dissolved. pleas court that wants one. common pleas court judges. cess, which is quasi-legislative, is go- docket.” “And I wouldn’t say it’s more di- e fate of the docket in Cleveland at's signicant considering the ing to take its due course to run,” Cia- Members of the Cincinnati law cult to practice without more pre- has been in question since it was motivation for dissolving the docket no said. “But I’m encouraged to rm Keating Muething & Klekamp dictability of a commercial docket,” eliminated in January 2015. in Cleveland came in January 2015 know that at least it will be reviewed PLL, for example, wrote to oppose a he said. “But I would say that having e most recent developments with the rejection of Judge Cassandra when the new term starts in January.” change in how judges on a docket are a commercial docket makes for a transpired over the summer, when Collier-Williams from the specialty He added that the subcommittee considered that would limit candi- more predictable and eective litiga- the Ohio Supreme Court, which court by the Supreme Court’s Com- he leads is “ready and willing to pro- dates to judges with at least three tion process for businesses. at’s oversees the state’s specialty dockets, mercial Docket Subcommittee, vide whatever support and feedback consecutive years of service on a the primary reason we’d like to see it requested public commentary on whose chairman said Collier-Wil- we can provide to see if there’s a form general division court in the past six back in some form or fashion.” some proposed rule changes, many liams was not qualied for the posi- of which were posited by a team of tion — a move that seemed to mi Cleveland attorneys and judges. Cleveland judges. Some of those proposals include Phillip Ciano, principal at Ciano & changes in how judges are selected. Goldwasser and a leader of that local Other give more discretion to local team, said he’s heard of no updates judges on how and what commercial from the Supreme Court since com- May the Warmth of the Season cases are assigned to the specialty mentary on the changes was solicited court, which is designed to expedite this summer. complex business-to-business cases However, a spokesman for the Su- such as liquidations, trade-secret dis- preme Court told Crain’s last week putes, noncompete contracts and the issue will be revisited after two Light Your Way shareholder disagreements. new justices ocially join the court A tool like that makes the court in the new year. and the region it serves seem more at was welcomed news to Ciano. Throughout the Year. SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt Call For Pricing!! 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1-800-547-1538 Salt Distributors Since 1966 ©2016 New York Community Bank PAGE 8 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS Cli s CEO says Trump will keep the good times rolling BLOOMBERG curtailed shipments from China and other countries. Goncalves said the Obama administration’s eorts on e head of Cleveland-based Clis imports cases resulted in a “very Natural Resources Inc. was preparing well-rounded situation.” for a “worst-case scenario” next year. “Everything that came since Mr. Instead, he got Donald Trump. Trump became president-elect is all Clis, the world’s best-performing good, and adds to what we had be- raw materials producer this year, will fore,” Goncalves said. “So, even probably generate “a lot” of cash, though I was not planning for that, I with which it will pay down debt, was planning for what I believe at this CEO Lourenco Goncalves said. He point was a worst-case scenario. So assigned President-elect Trump’s fo- Trump is the best-case scenario.” cus on infrastructure building and a Iron ore delivered to Qingdao China crackdown on unfair trade as reasons is up 87% this year, surprising analysts his company and the steel industry who repeatedly forecast a pullback are poised for more good times. amid the expectation of rising global Shares of the company almost supply and dwindling demand in Chi- quadrupled this year through early na, the world’s biggest consumer. November amid signs of improving “ e commodities desks of the big demand and successful U.S. trade nancial institutions have been beat- cases against steel imports, which “If Mr. Trump ing the drum that iron ore prices helped boost domestic steel prices. would go down, would collapse, With Trump pledging to spend $1 implements a portion would go down to numbers that are trillion on infrastructure and to fur- of what he is totally crazy,” Goncalves said. ther clamp down on trade cases He said where prices go from here against countries including China, promising ... all depends on the three biggest iron GIVING n · Y o O the shares have surged an additional ore producers — Rio Tinto Group, i U t R a

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m everything — of what he is promis- the United States will from the industry’s decade-long strat- ing, not only will the country be a lot egy to keep pumping ever-expanding better after these things are imple- benefit very much.” supply onto the global market. We’re Akron Community mented, but businesses like Clis Paying down debt will continue to Foundation. You help charitable and all steel mills in the United States — Lourenco Goncalves, Cli s CEO be the most important use of pro- will benet very much,” Goncalves ceeds of any cash that they generate, people achieve their nancial said in an interview ursday, Dec. 8. companies in the bond market this Goncalves said. He said he has no e stock fell 0.2% to $10.37 in New year, with a return of 153%. at’s al- plans to raise equity at this point be- goals, and we help them support York on ursday. Shares have most ve times the average gain. e cause he doesn’t want to dilute the the causes they love. Our Donor- surged 556% this year, the best per- yield on its notes due 2040, which be- shares. formance on the Bloomberg World gan the year at about 35%, is now “We are going to generate a lot of Advised Funds oer clients the Iron/Steel Index of 75 companies down to 8.4%. prots. We are going to generate a lot and the 455-member Bloomberg Domestic steel producers, which of jobs,” Goncalves said. “And we are maximum tax bene t and an World Basic Materials Index. are Clis’ customers, have beneted going to generate a much better in- easy way to engage in everyday Clis is also the biggest gainer over the past year from anti-dumping frastructure that is very, very much among major mining and metal and countervailing duties that have needed in this country.” philanthropy. Our Planned Giving options are exible, so you and your client can cra a tax-smart legacy of giving. Our Everything you need experienced sta is always here for you with charitable options, for a great meeting is local insight and expert service.

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Sports Business -- Real Estate -- Health Care -- Manufacturing Submit An RFP at This isCLEveland.com/Meeting | #Meet i CLE Small Business -- People on the Move -- Middle Market CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 9 Five-team Arena league says it’s in good place By KEVIN KLEPS ‘A huge problem’ has a subscription-based network that will broadcast his AFL teams’ [email protected] Robert Licopoli — who ran the games. @KevinKleps North American Football League, a Finding more owners with similar 100-plus-team semipro circuit, from clout and assets — i.e., arenas and Since the Arena Football League 1999 to 2008 — said he was part of a management teams already in place season concluded with the Philadel- group that twice looked into buying — will be key, and likely dicult. phia Soul winning their second the Orlando Predators. But that was “is league has suered in the championship on Aug. 26, the before Butera’s arrival, a time in past from starts and stops,” Butera 29-year-old indoor football circuit which Licopoli said the “state of the said. “We’d get an owner, and the has had ve of its eight teams fold op- league was so bad.” next year he’s done. at doesn’t help erations or move to a rival league. e biggest problems Licopoli, the league. You can’t develop your e AFL — which includes the now the founder and CEO of New league that way. We need people Cleveland Gladiators and had 14 teams York-based 360 Sports Agency, and 100% committed to the long term. as recently as 2014 — rebounded some his partners had with the AFL’s setup We don’t want them to fail.” with the addition of two franchises, were the hefty league dues, high fa- e Gladiators ranked third in the Baltimore and Washington, that are cility rental fees and a structure in AFL with an average attendance of backed by billionaire Ted Leonsis. But which “owners start in a deep nan- 11,046 for their eight home games in if no other teams are added before the cial hole from Day 1.” When the Jack- 2016. With three consecutive years in start of the 2017 season in April, the sonville Sharks folded in October, the top three in attendance, Cleve- AFL’s current ve-club setup would be owner Je Bouchy complained about land is a rare AFL success story. its lowest franchise count since 1989, The Cleveland Gladiators averaged 11,046 fans for their eight home “constantly growing league expenses e Gladiators are proceeding as when the league dropped from six to games in 2016. (Contributed photo) and the lack of league revenue,” they would under normal condi- ve teams for its third season. which he said “led to crippling oper- tions, with three-game holiday Franchise turnover is nothing new league built around experienced, on the topic since, though it does re- ational costs.” packages available on the fran- for the topsy-turvy league, which wealthy owners whose AFL team can main committed to the AFL. Under the AFL’s single-entity mod- chise’s website. skipped the 2009 season after ling play in an arena in which another Butera, the CEO of Foxwoods Resort el, when owners don’t or can’t pay Butera said the AFL is “working fu- for bankruptcy. major sports team already resides. Casino in Connecticut prior to his AFL their bills, the costs are passed on to riously” toward its goal of having “12 e changes this time are by de- e Gladiators, who were purchased appointment, is gambling that the the remaining owners. to 16 teams in the next few years.” sign, however, AFL commissioner by Gilbert in 2012, are the league’s league can survive with fewer owners, “at’s a huge problem,” Butera But quality will always come be- Scott Butera told Crain’s. model franchise. provided they t the Gilbert-Leonsis said. “You gotta support the league. If fore quantity, the commissioner “We and the better owners always In October — when the AFL’s fu- model. And yes, the league will play a somebody bails on you, you gotta stressed. wanted this to be a really well-run, ture was in question because of the ve-team season if it’s determined that pick up the tab. at’s a hard pill to “We essentially turned around excellent sports league,” said Butera, departures of the Jacksonville Sharks is best for the long haul. swallow.” years and years of mismanagement,” who became the league’s seventh (who joined the edging National “If we just had to go with what we All of which is why the AFL com- Butera said. “Major restructurings commissioner in September 2014. Arena League) and Arizona Rattlers have, we’d be OK with that,” Butera missioner believes the addition of take a great deal of time. A lot of dam- “We had a number of owners, and (now part of the Indoor Football said. “We are completely out of the Leonsis is vital. e founder of the age was done that had to be un- obviously we’re fortunate in Cleve- League), and the shutdowns of the mode of what do we have to do to be Baltimore and Washington franchis- wound. We thought it was important land to have a really strong one (in Orlando Predators, Portland Steel OK tomorrow? We don’t want to sit es owns the NBA’s Washington Wiz- to keep the product showing well Dan Gilbert), who can make that and Los Angeles Kiss — a Cavs source here and say we have to add two ards, the NHL’s Washington Capitals, while we xed the other issues. We happen and share that vision. And told Crain’s that it was “business as teams to have a better process in the WNBA’s Washington Mystics and always had excellent football. We just we had others that didn’t.” usual” for the Gladiators. e organi- 2017. We’re going to get the right the Verizon Center. Leonsis’ Monu- have not had excellent manage- e vision, Butera said, is to have a zation hasn’t said much of anything people, no matter how long it takes.” mental Sports & Entertainment also ment.”

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post-event coverage • crainscleveland.com/mpower2016 PAGE 10 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS Opinion

Personal View Five areas for entrepreneurs to evaluate post-election By TOM SUDOW

Admittedly, most of the crystal balls used to prognosticate the 2016 election are sadly in need of repair or replacement. So attempts to dust o those crystal balls to peer into the future, as it relates to the next few years, have an analogous chance of ac- curacy. So what signs should entrepreneurs and innovators be looking for with the change in administrations? e ve areas that will have the greatest impact are as fol- lows:

Taxes

It appears that attempts will be made to simplify the tax code. is could include reductions in the numbers of individual tax brackets; the lowering of rates across all brackets; increases in standard deductions; lowering of the corporate tax rate to 15%; Editorial and a 10% rate on repatriation of foreign prots with the goal of bringing corporate “headquarters” back to the United States. is lowering of taxes has the challenge of increasing the fed- eral decit, unless cuts in expenses can be found and/or there's an increase in tax collections from more sources, like repatriat- ed corporations and increases in wealth. Metro’s big bite For the entrepreneur, will these tax breaks and simplication of the tax code allow for individuals and corporations to invest At last, MetroHealth recently announced more details of its new hospital is expected to go live in 2022. more money on innovation or with entrepreneurs? Will tax ambitious and long-talked-about plan to overhaul its deterio- It’s no secret that a major reason for MetroHealth’s nancial breaks continue for investors? And what, if anything, will hap- rating main campus o West 25th Street in Cleveland. In short, turnaround was the Medicaid expansion made possible rst pen to the capital gains tax? e theory remains that a lower system ocials say the $855 million overhaul calls for a new through an experimental waiver program and ultimately the capital gains tax promotes investment. Further, if more money nine-story hospital that will o er numerous opportunities for A ordable Care Act. And while Medicaid hardly covers the cost is available, will that encourage more investment? added eciency and improved outcomes. of care, it brought in new revenue to o set the millions dollars From what we’ve seen of the plans so far coupled with Metro- worth of charity care the hospital system provided. Immigration Health’s recent track record building stunning new outpatient But with Donald Trump in the Oval Oce and a Republican health centers, Cuyahoga County taxpayers have all the reason Congress gnawing to undo the ACA, the uncertainty blanketing Immigrants have contributed signicantly to the knowl- to be thrilled about the future of the hospital system they’ve the health care industry is as su ocating as ever. Still, in a meet- edge-based economy. subsidized, albeit marginally in relation to its overall budget, for ing with Crain’s editors, Boutros wasn’t fazed by the prospect of Many immigrants also are entrepreneurs; what is more en- so many years. an ACA pullback and vowed to press forward with the project. trepreneurial than taking the risk to leaving your home and re- What’s most impressive at this stage, however, isn’t the ren- Given these challenges and the sheer size of the project, settle in a new country? derings of the buildings poised to rise, but MetroHealth’s deci- it’d be easy to characterize Boutros as naive when it comes to Will a new immigration plan have exceptions for high-skilled sion to nance the entire project on its own credit. e move to his vision of reinventing MetroHealth. This too, after all, is immigration? Will that new plan have any provisions for immi- go to the bond market, ocials say, provides MetroHealth an an enterprise that before his arrival couldn’t keep its books grants who invest in the United States and can help grow the opportunity to be more cost e ective and faster than if it had straight and its administrators from piquing the interest of economy? What impact could new immigration legislation sought out other sources of funding. the FBI. have on the importing of innovation that has helped to stimu- It’s worth noting this is the same health system that ve years However, Boutros has proven to be a leader who can be trust- late the U.S. economy? What e ect could it have on investment ago laid o several hundred employees just to climb out of the ed by county taxpayers. He stresses that he isn’t using this proj- from international sources into U.S. entrepreneurs? red and even recently has faced nancial pressures due to Uni- ect as a resume builder. And frankly, he told us that he plans to versity Hospitals’ e orts to capture some of the region’s lucra- see the project to completion and one day retire from Metro- A ordable Care Act tive trauma business. We expect the bond market will be recep- Health. tive to MetroHealth’s plans, given the system’s impressive Over the last few years, MetroHealth hasn’t given us any e repeal of the A ordable Care Act had been at the fore- nancial turnaround over the last ve years under the leader- reason to doubt the direction in which it’s headed. Its new front of the campaign. If it is repealed (or changed), what re- ship of CEO Dr. Akram Boutros. outpatient health centers, particularly the one in Middleburg places it? at said, the project certainly carries risk. One is the $855 Heights, and its transformation of former HealthSpot urgent Donald Trump, during the campaign, called for a more million price tag. By comparison, the Cleveland Clinic’s Sydell care centers into Metro emergency departments have shown free-market system. How will this impact businesses and their and Arnold Miller Family Pavilion and Glickman Tower — a the system can expand its mission and reach on time and cost employees? project that opened in 2008 and transformed the main campus’ e ectively. Further, for those in biomedical innovations, will that add entry point for many patients — cost just north of $500 million. This $855 buildout is the final piece of the transformation- money to health systems, or restrict it even more? is could University Hospitals’ state-of-the-art Ahuja Medical Center and al journey MetroHealth has undertaken during Boutros’ ten- encourage or discourage the adoption of new innovations and Seidman Cancer Center cost $298 million and $260 million, re- ure. This part of the journey most certainly will have its new products. If fewer people have access to health insurance, spectively. twists and turns. But if the health system can pull it off, will that mean less revenue for the health care organizations MetroHealth’s project dwarfs all of those. After all, this is a Cuyahoga County and the health of its residents will be bet- and thus a further tightening of their budgets, and what e ect complete rebuild of the health system’s core infrastructure. e ter off. SEE SUDOW, PAGE 12

Publisher and Editor: Elizabeth McIntyre ([email protected]) Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Managing Editor: Scott Suttell ([email protected]) Cleveland, OH 44113, or by emailing [email protected]. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sections editor: Timothy Magaw ([email protected]) CLEVELAND BUSINESS Sound o : Send a Personal View for the opinion page to [email protected]. CLEVELAND BUSINESS Contact Crain’s : (216) 522-1383 Please include a telephone number for verification purposes. CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 11

Personal View President-elect is trumpeting growth, but can he deliver? By DAVID McCLOUGH tion can count up 25 million jobs many ways. With a Republican-controlled House and Senate Lost in the blusterous personal attacks and for- and Trump presumably beholden to few interest eign policy and immigration rhetoric of the 2016 groups, I hope to witness one of the few laborato- presidential election is a fairly familiar economic ry-type experiments of economic policy. e fate of plan touted to create 25 million jobs in the next de- supply-side advocates and the ideology may hang in Every shot blocked by the Cavs earns a $100 donation cade. the balance. from Elk & Elk to the Cleveland Clinic Children’s Hospital President-elect Donald Trump’s economic plan is Doubling growth is the more intriguing claim. quintessential supply-side economics built on the Growth has stalled in recent decades, with some ar- 1.800.ELK.OHIO | elkandelk.com/weakstuff expectation that tax cuts and deregulation stimulate guing that the immensity of the U.S. economy neces- production that creates employment with the in- sarily limits faster growth. come used for consumption needed to perpetuate If Congress enacts the plan quickly, and Trump the virtuous cycle. makes it clear that the government is no longer the Trump’s plan includes stalwarts like tax cuts for trough from which rms feed, we may see an alloca- households and rms as part of broader tax reform, tion of resources away from lobbying seeking privi- deregulation, infrastructure spending, cuts to dis- lege and toward innovation and production. cretionary spending, renegotiating trade deals, and Investment in research and development leads to tax relief intended to encourage repatriation of for- new products, services and technology that defuse eign earnings. through the economy fairly quickly, generating Trump predicts that economic growth will double growth and the accompanying employment. and create 25 million jobs. Opponents claim the tax Welcoming repatriated pro ts, estimated at more cuts will contribute to a larger national debt. than $2 trillion, represents an enormous source of eoretically and intuitively, what Trump claims capital to expand production and fund research and is possible. Growth rates have been anemic, so dou- development. Lower business taxes represent an bling growth is not prohibitive, and the administra- SEE MCCLOUGH, PAGE 12

Web Talk Re: Democrats Actually, education of individuals is not enough. opposing Trump That's not how basic social influence works, and social media users like the man who runs the The Democrat vermin have no teeth now. The disinformation site DenverGuardian.com know that. Republicans have the Harry Reid nuclear option So do the other young men like him operating out now! of their bedrooms in Eastern Europe, and so do The election of Donald Trump wasn't just a Putin and his surrogates. victory for a political party; this is a revolution. We are all naturally susceptible to believing only We have the power to wipe out all the evil the information that confirms our belief systems. Democrats have done since Woodrow Wilson. These “entrepreneurs” understand that people These Democrat vermin can't stop us. with a particular worldview are susceptible to — John Jett these kinds of stories and prey on them. Media and government will have to do more than educate our Sherrod Brown, you are now irrelevant! Thank Harry population. Reid and his nuclear option! We know that lies repeated over and over again You have earned it. You are an obstructionist to seep into our beliefs, even for those of us who liberty serving as a progressive communist in the know they are lies. We as a society need to find Obama Democratic Party of jihad deplorables. ways to make it unprofitable for these people to — 216265 engage in their businesses. — Lisa P. Ganyier

The liberals (progressives) hate the wealthy and I agree that educating our youth is important in successful people in general. It's possibly why they separating electronic fact from fiction, but am 575 JOBS. THAT’S WHY. lost the election. The American people are tired of concerned by the clearly liberal bias of our the do-nothing politicians like Sen. Sherrod Brown. educators. WE ARE ECONOMIC He hopes Trump will fail, even at the expense of Will they be truly focusing on “facts” or will it be DEVELOPMENT EXPERTS. the country. Shameful. — Allan Wood facts through a liberal lens? One only needs to look at Plain Dealer headlines and New York Times A recent inSITE project preserved Re: Fake news stories to see that the line between reporting and 450 jobs and created 125 more editorializing have been banished from the front for the City of Cleveland. It is refreshing to see news editors tackling this pages. — James Wert topic, as Crain's publisher/editor Elizabeth McIntyre did in her Dec. 5 column. Re: Ohio as a fuel cell leader Fake media and biased spinning on actual stories frustrates me, because instead of getting closer to Hydrogen fuel cells make more sense than both resolutions, there are just more angles to look at solar and wind, especially considering that until it spirals so far out of control that no one can hydrogen is the most common element in the tackle the original issue. universe where there is endless supply. Education needs to include subjective and If all the money wasted by the federal government on objective thinking classes again instead of just solar and electric powered cars had been spent in a standardized testing on school subjects. It is smart way, the U.S. could already have a nationwide great if students can ace classes, but if they can't distribution system in place for less money. Electric form an opinion on what is in the world around cars still pollute, since they get their power from them, they are not being fully educated. existing power plants that mostly burn fossil fuels — Wendy Fitos emitting carbon dioxide. — Walt Oshinsky Call today to learn more 330.338.4926 www.insiteadvisorygroup.com PAGE 12 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS

activity creates more employment per. Reality — and politics — tend meaningful entitlement reform. opportunities that fuel expansion to interfere. Unfortunately, there is no one in MCCLOUGH of the process. Ideally or idealisti- e principle threats to economic Congress who is not beholden to CONTINUED FROM PAGE 11 cally, the expansion of the economy success are almost entirely political. some special interest that will fight will generate more tax revenue de- First, the Affordable Care Act reform at all cost. Entitlement re- incentive for firms that retain more spite lower marginal tax rates, along with entitlements will contin- form likely demands that all lose in of the reward associated with in- which can contribute to a budget ue to demand the lion’s share of the order to win, which is a tough sell to vestment of all kinds. Lower per- surplus that reduces the national federal budget. Deficit reduction the American electorate, but then sonal income taxes create dispos- debt. can only occur with entitlement re- again maybe this electorate is dif- able income to buy goods and What Trump proposes is possi- form. The president-elect will have ferent? services. The increase in economic ble, but so is communism, on pa- to work with Congress to affect Second, the United States is in a state of perpetual war that reported- ly adds more than $1 billion each day to the national debt. While a to- tal withdraw of troops from around /C[QT/GTNG5)QTFGP the world is nearly impossible and 'EQPQOKE&GXGNQROGPV&KTGEVQT,KO&QWVV irresponsible, a Trump administra- ,COGU&QWVV"$GCEJYQQF1JKQEQO tion may be well-suited to insist that 999$'#%*911&1*+1%1/ bene ciaries incur a greater propor- Trump predicts that tion of the burden. Recall that the collapse of the So- economic growth viet Union was, in part, due to Mos- cow’s inability to subsidize the inef- will double and ciencies inherent in the system while ghting Afghan warlords for a 5KPEGOQTGVJCP create 25 million decade. Sound familiar? jobs. Opponents What Trump proposes is possible, but neither the president-elect nor /+..+10 claim the tax cuts the U.S. government or military will have anywhere near the control over will contribute to a political events at home or abroad JCUDGGPKPXGUVGFD[ that is needed to usher a successful larger national debt. implementation of the entire eco- nomic plan. $GCEJYQQF$WUKPGUUGU Theoretically and We will have to wait to see what intuitively, what happens. Trump claims is McClough is an associate professor of economics at Ohio Northern possible. University. 7HEN YOURE IN "EACHWOOD YOU HAVE ARRIVED
SUDOW What signs should entrepreneurs and CONTINUED FROM PAGE 10 innovators be will that have on the adoption of new products? Would new legislation in- looking for with the clude wellness and remote digital WINE health care? If yes, this could open up change in opportunities for innovation? administrations? DOWN Trade The five areas that e trade issue reverberated in the will have the Midwest and may have been a cata- WEDNESDAYS lyst for the election result. greatest impact are How will restrictions on trade im- pact U.S. products in the global mar- as follows: Every Wednesday, enjoy half-priced ketplace? And how will it restrict n Taxes bottled wine with the purchase of any high-quality innovation from entering this country? Could there be a back- n Immigration entrée at Kosar's Wood-Fired Grill. lash against U.S. companies trying to achieve a global market? Could a new n Aordable Care Act Some exclusions apply. trade policy restrict innovation from entering the United States? What im- n Trade See your host or server for details. pact could it have on collaboration between U.S. entrepreneurs and their n Regulation counterparts around the globe? and years will begin to be answered. Regulation As entrepreneurs and innovators, it is incumbent to stay on top of e new administration has made a these issues and to understand how point during the campaign of suggest- change aects your business. Addi- ing the streamlining of federal regula- tionally, staying agile will be an im- tions on business. portant quality to have as you work is could open up opportunities to understand and adapt to change. for innovations, and it makes bringing A change in administration brings innovation to the market simpler and uncertain and opportunity — two less costly, depending on what areas words that true entrepreneurs thrive the regulation reform is targeted. It will on. be important to track these changes VEGAS EXPERIENCE. OHIO ADDRESS. and to understand how they impact, if Sudow is the director of the Burton D. 10777 Northfield Road | Northfield, Ohio 44067 | 330.908.7602 | hrrnp.com at all, your business. Morgan Center for Entrepreneurial For free, confidential help 24/7, call the Ohio Problem Gambling Helpline at 1.800.589.9966. Being a few weeks removed from Studies at Ashland University and an the election leaves us with many adviser to eHealth Ventures and to SCI, questions that during the next months a Chinese investment group. CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 13 ANALYSIS Parker Hannifin is hot in Cleveland with smart deal BLOOMBERG GADFLY mostly tiny deals over the past de- before interest, taxes, depreciation EBITDA, while Rockwell Collins Inc.’s generating a ton of cash and its $1.1 cade. But back in October during the and amortization). at was way $8.3 billion oer for B/E Aerospace billion of net debt as of the latest company’s rst-quarter earnings down from more than $65 a share, or Inc. implies a similar multiple. quarter was less than its trailing Rare M&A participant Parker Han- call, CEO omas Williams hinted 15 times EBITDA, in late 2014. However, unlike some other deals 12-month EBITDA. ni n Corp. is striking while the iron’s that something was brewing. While Clarcor had bounced back that came about in the M&A boom of Since the post-election rally in in- hot. “What historically the last couple in recent months, Parker Hanni n’s the past couple years, Parker Hanni- dustrial stocks in particular, Parker e May eld Heights-based man- of years has slowed us down as far as $83-a-share oer still looks pretty n’s bid price looks to be sound and Hanni n shares have blown past an- ufacturer of motion-control tech- converting more acquisitions has good. It’s a decent 24% premium to strategically, it’s a sensible move. alysts’ estimates. It also recently gave nology announced Dec. 1 that it’s been the price/valuation gap,” he Clarcor’s average closing price over Parker Hanni n says Clarcor com- updated sales and earnings guidance acquiring Franklin, Tenn.-based said. “And what we’re seeing now — the past 20 days, but also 42% higher plements its own ltration oerings for the year that was better than ex- Clarcor Inc., which makes air and and I would hope over the next cou- than its average price this year. and bolsters its presence in a “grow- pected. And on Dec. 1, following the liquid ltration products used in ev- ple of years we’ll continue to see this e all-cash transaction also val- ing and resilient business.” Pollution deal announcement, Parker Hanni- erything from bus engines to oil even more — is I think sellers’ expec- ues Clarcor at 18 times trailing control and air puri cation seem like n traded at a record high. drills as well as at manufacturing tations coming closer to reality.” 12-month EBITDA, notably higher industrial needs that probably aren’t Its careful growth planning and plants. At a total value of $4.3 billion, is is evident in Clarcor’s share than a couple other recent deals for going away. e company projects balance sheet discipline is turning including net debt, this is by far price and valuation over the past two U.S. industrial manufacturers of sim- annual cost savings of about $140 this longtime Northeast Ohio manu- 99-year-old Parker Hanni n’s larg- years. Clarcor had sold o to as low ilar size. Berkshire Hathaway Inc.’s million starting from three years after facturer into a new investor favorite. est acquisition. as $44.29 a share in January, giving it $37 billion acquisition of Precision the deal closes and the businesses In a time of otherwise rash M&A de- Despite its own $19 billion market an enterprise value equal to 10 times Castparts valued the aerospace-com- consolidate their supply chains. cision-making, Parker Hanni n cap, Parker Hanni n has stuck with trailing 12-month EBITDA (earnings ponents maker at about 14 times Parker Hanni n also has been stands out.

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[email protected] Z160117BR1 3/16 Customer service and subscriptions 877-824-9373 PAGE 14 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS The Dish: Susan Condon Love Local brewers ensure holiday gifts aren’t returned Beer drinkers’ love of holiday to produce is informed by past sales, brews, a market pioneered locally by Susan Condon industry trends and consumer con- Great Lakes Brewing Co. in 1992 with Love is a dence.” its Christmas Ale, is in its full glory freelance But Great Lakes ocials aren’t this month as consumers happily writer who was worried about having Christmas Ale clear shelves of their favorite winter an editor and on shelves past Christmas. beers. writer at The “We’re more concerned with mak- But as they enjoy such o erings as Plain Dealer, ing sure beer within the freshness the 12 Dogs of Christmas and Festi- The Las Vegas Review-Journal, date printed on the side of the bottle vus Holiday Ale, consumers may the Savannah (Ga.) Morning is being sold above anything else,” vaguely remember their annoyance News and The Annapolis Capital. said Boor, who added that some as “seasonal creep” brought some fall batches have dates going well into brews to stores as early as August. February. With the holiday sales window so creep in beer is very much missing Matt Cole, co-owner of Fat Head’s small and the craft beer market so lu- the point,” said Sam McNulty, Brewery and Saloon, agreed that the crative — 2015 saw a 12.8% increase co-founder of Market Garden Brew- pressure to “be the rst” and stand in production nationally — is it smart ery and Bier Markt, among others. out from the other seasonal brews for companies to roll out seasonals Market Garden produces Franklin can be intense. early to take advantage of consumer Caste Pumpkin Spiced Ale and Festi- “We would rather be short than interest? But if they do, by the time vus Holiday Ale in fall and near the long,” said Cole, who estimates that December rolls around, have the holidays. seasonals comprise about 25% of Fat beers passed their peak? “When pumpkin ales are out in Head’s current production of 28,000 “Last year, I think there was a prob- June, it really misses the mark on true barrels a year. lem with … overproduction, intro- seasonality of ingredients,” McNulty Fat Head’s, too, consulted with its ducing seasonal too early and left- said. “Fresh craft beer always tastes distributors and studied last year’s overs,” said Bart Watson, chief best, and if a pumpkin ale hits retail sales to decide the timing and quan- economist with the Brewers Associa- shelves in the middle of summer and tity of its holiday releases. e release tion. “We have seen an adjustment is still around in the fall, it is not go- date of its Holly Jolly Spiced Ale was this year to avoid those problems. ing to be fresh.” Seasonal beers account for 30% of the Thirsty Dog Brewing Company’s at the start of November, and if all Brewers are talking more to their dis- Market Garden introduced this production. (Contributed photo) goes as planned, the brewery expects tributors and paying attention to the year’s seasonals on the same sched- to be sold out by January. numbers.” ule as 2015: September for its Frank- what of a sales growth slowdown the are now pretty much sold out,” he “eir sales really help our third- Northeast Ohio brewers did, in- lin Caste Pumpkin Spiced Ale and past two years, according to the said. “We’ve gotten some new orders and fourth-quarter earnings,” he deed, feel pressure to provide the October for its Festivus Holiday Ale. Brewers Association. and we cannot ll them.” said. “It forces us to be strategic, holiday beers early, but some only “Happily, we’re faced with the “We (worked) with distributors to Great Lakes, which distributes its without sacricing our core beers pushed the schedules up slightly. good problem of not having enough see their projected numbers for (hol- beers in 13 states and brews more (production).” Others, including Great Lakes Brew- capacity to keep up with demand for iday) brews, as well as our projected than 160,000 barrels annually, uses a Great Lakes stands by its historical ery and Market Brewery, did not our seasonal beers,” McNulty said. numbers,” said John Najeway, similar strategy in that it works with release schedule. move up production of their holiday “In fact, at some point this week co-owner of the irsty Dog Brewing distributors to forecast demand. “We have our rst pour tradition at o erings at all. (week of Dec. 5), we’re going to run Co., where seasonals represent 30% “e goal is to meet consumer de- the pub, which we typically celebrate e temptation to roll out earlier is out of Festivus Holiday Ale despite of its production. “is year, we went mand without having a seasonal lin- in late October, then release Christ- understandable. Nationally, the craft having brewed what we thought with less than the distributor’s num- gering in the market beyond its time,” mas Ale in our markets within a week beer market’s sales were $22.3 billion would take us through the holidays bers and more than our number — said Bill Boor, Great Lakes’ CEO, who or so,” Boor said. in 2015. On average, seasonals ac- and into late January.” somewhere in the middle.” added that there is pressure to come He added, “It’s tempting to chase count for about 20% of all craft beers e overowing craft beer market Najeway said the brewery, which out early to grab premium placement the sales, particularly when we know in Ohio, Watson said. has forced brewers to be strategic makes the 12 Dogs of Christmas Ale, in stores and on tap handles. “Find- others are competing with us ... but “We’ve seen season creep in nearly about seasonals, which have seen doesn’t want a holiday glut. ing the sweet spot can be tricky, but we stayed the course this year. Christ- every aspect of retail, but season some market saturation and some- “e good and bad news is that we ultimately our decision on how much mas Ale, after, is all about tradition.”

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When making sure they swim is the only option

iStock Assistance funds ease worker worries amid personal hardships

By DOUGLAS J. GUTH anks to an employee-funded tance Foundation, or EAF, which An emergency response emergency assistance program cre- helps corporations in creating crisis [email protected] ated by Hyland, Holmes was able to grants for employees, onboards six to While there are numerous employ- defray part of the cost for the pricey eight new companies each month. ee hardship programs, most are de- When it comes to hardship, Hyland therapy, getting Andrew ten weeks of e EAF has fostered 52 funds for 167 signed as nonpro t entities that re- Software employee Nick Holmes’ much-needed treatment that would companies worldwide, covering ceive contributions and disburse family has endured its share. have been  nancially unsustainable about 1 million workers, with anoth- grants to impacted sta members. Holmes, a professional development otherwise. er 600,000 scheduled to plug into the Contributions are tax deductible, and specialist with the Westlake-based “My son is doing so much better,” system in January. employees are not subject to a tax hit company known for its OnBase prod- said Holmes, 31. “He used to be ag- “ ese funds are hugely increasing on the money they acquire. Typically, uct, has two young sons diagnosed with gressive at school, and this therapy in popularity,” said Doug Stockham, a fund’s co ers are  lled by the em- autism spectrum disorder, requiring ex- has really helped him.” the foundation’s executive vice presi- ployees themselves, Stockham said. pensive services and therapy not cov- Holmes’ story is not uncommon as dent. “Four or  ve years ago they Once established, programs respond ered by Hyland’s insurance. A clinically more companies nationwide use em- were big with large companies, but to emergencies of all types, from tor- proven treatment for his 7-year-old son, ployee assistance funds to ease some after Hurricane Sandy and other di- nadoes to unforeseen sicknesses that Andrew, costs upwards of $30,000 out- of the burden of those undergoing sasters, more companies wanted to cause unusual medical expenses. of-pocket annually. emergencies. e Emergency Assis- jump on the bandwagon.” SEE HELP , PAGE 17

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Adviser: Brendan J. McCarthy Tax Tips: Carl Grassi Four unexpected ways Tax benefits to charitable giving you might feel the heat could change in coming years after closing an M&A deal Standard year-end tax advice the taxpayer can generally take the As a potential buyer of a target along the lines of “be sure to make Carl Grassi is fair market value of the securities as company in an M&A transaction, it Brendan J. your charitable contributions be- chairman of a charitable deduction. So a contri- can sometimes be easy to “over McCarthy is a fore year-end” has been a staple of McDonald bution of stock with a basis of $10 promise” on a timeline to closing in Cleve- basic tax planning for decades. Giv- Hopkins LLC. and a value of $1,000 can give you a your indication of interest or letter of land-based en the results of the presidential $1,000 charitable contribution de- intent, especially in an auction pro- partner in election and proposals for tax re- duction without having to recog- cess with possibly many bidders. You Thompson forms from other legislators, this nize the $990 gain. This very bene- want the deal, and you are willing to Hine’s advice may be particularly appro- ficial rule has been the target of tax move quickly in order to secure ex- Corporate priate this year. plan for reductions in tax rates. Other reform advocates over the years. clusivity. Transactions & Securities e rst reason why a charitable tax reform plans from Republican While short on details, Trump’s tax However, moving too quickly in practice group. He focuses his contribution in 2016 may provide a legislators, such as House Speaker plan includes a proposal to limit conducting due diligence and nego- practice on mergers and bigger bene t than in future years is Paul Ryan, have also called for a sim- the benefit of this planning tech- tiating the transaction documents acquisitions and commercial the possibility of a reduction in over- pli cation of tax rates, including an nique for contributions made to a could result in granular due diligence transactions. all tax rates. Unlike a tax credit, which overall reduction in the highest rates. private foundation. points being overlooked or glossed is a dollar-for-dollar reduction of the e second reason to consider a While many taxpayers might be re- over or provisions in the purchase amount of tax owed regardless of a charitable contribution this year is luctant to make a signi cant contri- agreement being accepted “out of own the business. If this is a real pos- taxpayer’s marginal tax rate, a tax de- that the itemized deduction for bution this year and reduce or elimi- hand” with little to no negotiation. sibility, consider negotiating with the duction, such as a charitable deduc- charitable contributions may be re- nate contributions in later years, one M&A transactions can and should seller for a representation or a line tion, reduces taxable income. e duced or eliminated next year. solution is a contribution to a do- move swiftly and eciently, but do item indemnity to cover it. Keep in value of the bene t of a deduction Trump’s proposal includes limiting nor-advised fund. A donor-advised not let the haste to sign the purchase mind that representations are highly therefore depends on the taxpayer’s itemized deductions to $200,000 for fund is a separate account or fund agreement result in you getting likely to be subject to survival peri- tax bracket. married couples ling joint returns. that is maintained by a public chari- burned following closing. e follow- ods as well as baskets and caps, so a For example, for a taxpayer in the Currently, the cap on chartable con- ty. Often described as a “charitable ing describes four unexpected ways line item indemnity may be the pre- 25% tax bracket, a $1,000 tax deduc- tributions is 50% of adjusted gross savings account,” a donor-advised you might feel the heat after closing ferred method to deal with this type tion reduces taxes by $250. But if a income for contributions to most fund allows a taxpayer to contribute the transaction to acquire your tar- of potential loss. taxpayer is in the 35% tax bracket, the charities, and 30% of adjusted gross cash or appreciated assets in the cur- get. same $1,000 tax deduction would re- income for contributions to private rent year to receive a tax bene t in Scrapes duce taxes by $350. e value of a de- foundations. A taxpayer with an ad- that year and then advise the fund on Retroactive insurance duction therefore decreases as tax justed gross income of $1 million grants to be made to speci c chari- premium adjustments You will no doubt accept some sort rates decrease. would therefore be able to contrib- ties in later years. of basket on your ability to recover Under President-elect Donald ute $500,000 to most charities this As with any tax strategy, it is im- In a stock deal, the buyer takes the for breaches of representations and Trump’s tax plan, the highest individ- year, but (under the proposed plan) portant to consult with quali ed pro- target with all of its liabilities, subject warranties. You should consider ual tax rate would be reduced from would be limited to $200,000 for all fessionals and consider the impact of to claims based on breaches of repre- reading out or “scraping” the materi- 39.6% to 33%, a reduction of almost deductions including charitable the strategy on other aspects of your sentations made by the seller and ality quali ers from the seller’s repre- 17%. If this reduction comes to pass, contributions, interest, medical ex- tax planning. is could be an inter- line item indemnities. ere is the sentations and warranties for indem- the bene t of a charitable contribu- penses and taxes. e limits under esting opportunity for many charita- potential for retroactive insurance ni cation purposes so your ability to tion will be decreased by this same the Trump proposal would therefore bly-inclined taxpayers because the premium adjustments with respect recover is not subject to two percentage for those in the top tax signi cantly impair the ability of Trump and the Ryan proposals both to periods during which you did not SEE ADVISER, PAGE 18 bracket. Trump’s plan is not the only high-income taxpayers to take ad- provide income tax rate decreases vantage of the tax savings that in- and restrictions on the ability to take centivize charitable giving. a deduction for charitable contribu- Another part of Trump’s proposal tions in future years. would limit a very effective tax It is dicult to predict whether planning technique: contributing and when the proposed changes will appreciated property (usually occur, but in light of these proposals, stock) to charitable organizations. taxpayers who give to charity, partic- Although subject to myriad rules, ularly those who are considering securities with long-term unreal- substantial charitable contributions, ized gains may be donated to chari- should factor the possibility of these Corporate College® ty without paying capital gains tax changes into their planning for con- Your Training on the unrealized gain. In addition, tributions in 2016. Partner

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mediate needs like tardy utility ser- vice bills or a stolen car. Launched in Fast food breakfast war? HELP 2009 in response to an unstable CONTINUED FROM PAGE 15 economy, the fund was initially real- ized as a one-time campaign, giving Julius Dorsey was lovin’ it Hyland partnered with EAF on $491,000 in assistance to more than “Hylanders for Hylanders,” a work- 700 company “caregivers.” By MARK OPREA McDonald’s ad ey pulled what may have been his er-paid endeavor launched in April e venture returned on an annual department, re- greatest trick to date: deceiving tes- that provides nancial relief to col- basis in 2011 for all sta regardless of [email protected] membered Dors- ters into believing that Wendy’s leagues in need. length of service or employment status, ey’s hire when breakfast had national potential. An Full-time employees who meet said Christine Bessmer, a total rewards In e Art of War, the military the company it- early-on ad, with a doo-wop quartet program criteria apply on an internal bene t administrator at the Clinic. strategist Sun Tzu wrote that, “If you self was chang- of cartoon eggs singing “Wendy’s! website, with requests reviewed by Awards top out at $300 in response know your enemy and know yourself, ing, as Bergold Only you!” showed promise for Mc- EAF ocials. Eligible events the fund to any number of scenarios: For ex- you need not fear the result of a hun- said, “beyond Donald’s rival. But Dorsey’s strategy covers include results from military ample, when an employee had a vehi- dred battles.” From his role as hobby- just that of a worked. Wendy’s was doomed before actions and funeral expenses for a cle stolen on Clinic property, that in- ist hunter, gridiron star, or marketer, Dorsey cheeseburger.” yolks even touched grill. family member. dividual received assistance after Julius Dorsey’s life seems to be com- “If you were “We thought that if we fooled Wen- “e goal is to approve 100% of producing a police report document- prised of many battles, those often good, you got a raise. Bad, you were dy’s into thinking that their breakfast grants,” said Lisa Jackman, Hyland’s ing the theft. Another caregiver won with the right knowledge. At red,” he said. “A bright guy like Ju- is a smash hit, when they roll it out to team lead of employee engagement. missed work to care for a sick loved least that’s how he may see it. lius, back in 1976? He was young, but other markets, we could crush them,” About 250 Hyland workers donate one, a situation already covered by the At 64, Dorsey is one of Cleveland’s he was smart. And that’s exactly what Dorsey said. “Instead of cutting mar- to the eort via payroll deductions, Family and Medical Leave Act. At the top competitive strategists with his McDonald’s was looking for.” keting back, we heavied it up. We money bolstered by outside dollars insistence of the caregiver’s depart- own rm, Dorsey & Co., which has an Dorsey’s genius couldn’t have ar- went way ahead what we’d been do- and seed funding from the rm’s ex- ment, the employee garnered addi- impeccable resume — from consult- rived at the Golden Arches at a more ing. And their product never took ecutive team. Individual grants can- tional aid from the fund. ing KeyBank to Case Western Re- bustling time in fast food history. Just hold. ey had to try and ght not exceed $5,000. Roughly 6,000 Clinic employees serve University — and a pinpoint as Bergold, Dorsey and crew were through all this advertising.” “People feel like they’re caring for have used the fund since its incep- methodology that revolves mostly, guring out how to sell their new Mc- Dorsey was right. In 1985, omas their fellow employees in need when tion. While peak usage was in 2011, for his clients, around a carefully Mun, Americans were beginning to release a statement to the public, they wouldn’t have been able to pre- workers are currently able to reach wrought takedown of competitors via spend upward of $7 billion dollars on mentioning that after a year of testing viously,” Jackman said. out to the program through a part- a bullet-point list of maneuvers, from fast food annually. Fast food was be- and consumer surveys, Wendy’s Holmes, who works out of Hyland’s nering employee assistance service. budgeting to research. ginning to shape social trends en wouldn’t then be joining the break- Lincoln, Neb., oce, paid $8,000 to “Although the economy has im- is is not just drafting a mission masse — and breakfast had yet to fast wars. Why? “A service problem.” provide his son with a shortened ver- proved over the last few years, there’s statement or taking out space on a catch on. Nowadays, at Dorsey’s own rm, sion of the costly behavior analysis still a lot going on for our caregivers billboard. No, Dorsey said, “you must It’s around this fact where the team he works alongside 56 consultants treatment. Using positive reinforce- at a personal level,” Bessmer said. think of this as warfare.” persuaded then-McDonald’s head with universities, banks and even ment to improve behaviors of those Employee hardship funds are ex- Fresh out of college at Michigan Ed Ramsey to create a full-out break- nds inventors the sure path to pat- diagnosed with autism, the 10 weeks pensive to run — the average compa- State University, where he was quar- fast menu, open at 6:30 a.m. instead enting — all with a highly re ned of therapy cost $13,000 prior to ny spends $600,000 to $700,000 on terback for the Spartans, Dorsey was of 11 a.m., as to subtly create an alter- Dorsey-esque view on competition Holmes applying for the fund. grant applications alone — but bene- drafted by the star ad rms of native to the slowly fading American One that deals with, as he said, a “se- “Without this I don’t know what ts like reducing worker turnover 1970s-era Chicago, including J. Wal- diner, or as Dorsey saw them, anoth- ries of factors that give businesses the we would have done,” Holmes said. and increasing a workplace’s familial ter ompson. But it was after work- er potential competitor. upper advantage,” and leaving others “rough the program I’m making a atmosphere outweigh the costs, said ing for Burell, where Dorsey was de- Yet, they weren’t alone in the mar- “confused, and in a state of limbo.” deal with my fellow Hylanders: Even Stockham of EAF. veloping strategy for McDonald’s ket. Hence, the so-called Breakfast “I think I just like to compete,” he if I don’t know you, I want to help if I “When a company starts a fund, are expanding the black consumer mar- Wars of the 1980s, when the top ad said, laughing. “Although I can’t play can. I’m just thankful to work for a they doing it to help employees in need ket when the precocious marketer’s reps at McDonald’s, like Dorsey, football anymore, I suppose that’s company able to help out my family or to make themselves look better?” career began to really pick up. were competing against other fast sort of my job now. But in reality the and make our quality of life better.” Stockham said. “It’s not just about In 1976, he was recruited by Mc- fooders like Burger King and Wen- quarterback is not the player who Cleveland Clinic’s employee hard- checking a box. Tell your employees Donald’s advertising department dy’s. It’s where one’s competitive makes the play work. No, it’s actually ship program is fully funded by the why they should donate, and have the and moved enthusiastically to its strategy is weighing the outcome of the eort of the whole team.” hospital system, oering relief for im- program grow and be successful.” headquarters in Oak Brook, Ill. It’s millions of dollars. there, over roughly eight years, that In the early 1980s, Wendy’s began Dorsey would help create, market to create the roots of their own break- and sell some of the fast food chain’s fast campaign. In 1982, Dorsey and most iconic products— the McRib, his team examined closely each of Egg McMun, Filet-O-Fish — with the test markets that, for example, the help of, on average, about a doz- Wendy’s was using to try out what en market researchers. He took on would be their contender (mostly nearly hundreds of commercials, their omelet), and see how it ap- made McDonald’s USDA-friendly, peased franchisees. and one time saved the Chicken Noticing that Dave omas, Wen- McNugget from near extinction. dy’s CEO, was testing breakfast solely Roy Bergold, who spent 32 years in in its Columbus headquarters, Dors-

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By JEREMY NOBILE way for us to engage them. And it seems to be working pretty well.” [email protected] Derrick Fulton, executive director @JeremyNobile of nonpro t University Settlement, a neighborhood center that provides Many corporate foundations focus social services to residents in the attention to their local school systems, Broadway-Slavic Village neighbor- but the charitable arm of Cleveland’s hood, applauded the eorts of the ird Federal Savings & Loan is set- bank and its Foundation, saying they ting a standard for others to follow. set an example for others to follow. It’s certainly a sign of the midsize “A lot of employees come from bank’s commitment to its native suburbs like these and in work in our Slavic Village, where the institution communities. I think we need more was founded by president and CEO commitment like this,” Fulton said. Marc Stefanski’s grandparents in the “ey didn’t even have to build their late-1930s. headquarters here. We need to rein- e bank has been quite active in vest in the city and not leave it be- the restoration of Slavic Village over hind. at’s what they’re doing.” the years through loans and grants e foundation is serving as a con- supporting real estate development nector of other organizations to bring in one of Cleveland’s poorest neigh- Third Federal CEO Marc Stefanski and his children get ready to serve Christmas Eve meals to residents of those programs to reality, too. And borhoods — and a community dev- Slavic Village. (Contributed photo) while there’s been movement in recent astated by the last housing crisis. e years with more groups joining forces, $12.6 billion asset bank’s own head- Foundation. “You have to do it Cooperative of Greater Cleveland, have the skills to do it.” it’s that role which helps serve as a cat- quarters, a $30 million campus built through education and through peo- said 47% of adults in the region read One of many innovative programs alyst to neighborhood revitalization. on the site of the original building, is ple. And that’s our mission.” at a 7th grade level or less. at’s a spun out of the foundation involves With the foundation marking its 10- a testament to that all its own. Nearly $24 million in grants have “literacy emergency” he said. e MetroHealth System’s Broadway year anniversary next year, the goal is But the ird Federal Foundation been made through the foundation “at’s like half of the working pop- Health Center. to continue much of the same work was established to invest in people and in the past decade. Karakul says an ulation who don’t have skills to do the Well visits at the oce — which of- the group has been engaged with and, programs, particularly those promot- average of about $3.5 million is given jobs that are required right now,” he ten lead to a shortened school day for it’s hoped, those eorts will lead to ing childhood literacy, in a wider eort away through it nearly every year said. “If you’re in manufacturing, you kids and their siblings as working long-term impact in the community. to ght systemic issues contributing to (some of it goes toward programs in operated a computer that operates parents shuttle their kids to appoint- After all, it’s an area this bank is clear- neighborhood blight and poverty. communities where the bank does three or four machines. If you have a ment — were a target for reading pro- ly devoted to seeing thrive. Stefanski’s e starting capital establishing business in Florida). 7th grade reading level, you simply grams. With support from the foun- grandfather, in fact, was a teamster who the foundation came from proceeds But about $1.5 million annually can’t operate that computer.” dation and other partners, like would put homes on Fleet Avenue on of an initial public oering by TFS Fi- has been supporting one of the foun- Besides helping children pass their ideastream, the lobby of that oce stilts and hand dig the basements to nancial Corp., ird Federal’s parent dation’s most innovative programs: third-grade reading exams, promot- has been converted into a reading drop them on a new foundation. company, in 2006. A combined $5 its Broadway P-16 initiative (refer- ing education should help ll local room. During average 40-minute But investing in the local commu- million in cash and $50 million in encing pre-birth through college ed- jobs. People will earn more. And an waits, volunteers cart in books and nity is also simply the right thing to TFS stock from that brought the ucation, or 16 years), a public-private educated population should see a oer to read to kids while talking with do, Stefanski said. foundation to reality in 2007. partnership with the Cleveland Met- decrease in crime. parents about neighborhood reading “We don’t always measure things “e idea of the foundation was to ropolitan School District designed to “at’s why we’re trying to make a programs and the importance of in terms of return. We don’t exist just invest in human capital because if take a birth-to-career vision for pro- long-term impact on education,” reading within the family. for the sake of being pro table,” he you’re going to invest in a communi- moting success in young people. Karakul said. “It’s critical to keeping “In an urban community, it can be said. “It’s like breathing air. We, as ty, you can’t do it through just bricks A major tenet of that program is the economy competitive. We have hard to engage the parents because humans, breathe air, but it’s not our and mortar,” said Kurt Karakul, exec- the promotion of literacy. Karakul, thousands of jobs in this region that they’re working all the time. ey’re sole purpose in life to breathe air. utive director of the ird Federal who sits on the nonpro t Literacy we can’t ll because people don’t busy,” Karakul said. “is was one ere’s more to it.”

recover for breaches you knew about may boil down to the governing law, ADVISER so do your due diligence when it is be- CONTINUED FROM PAGE 16 ing selected.

threshold limitations: the level of Control of materiality included in the represen- third-party claims tation or warranty itself and the ver- sion of the basket you accepted. As a e customers of the business are buyer, you’ll want to “scrape” materi- an immensely important part of why ality quali ers for both the determi- you are making the acquisition. If a nation of whether there has been a customer makes a claim or les a breach and the calculation of the lawsuit against the business you ac- amount of losses resulting from the quired with respect to the pre-closing breach. Otherwise, you might not re- period, you may very well have a cover as often or as much as you claim against the seller for indemni- might expect to from the seller. cation under the purchase agree- ment. As is often the case, the seller Sandbagging retains the ability to assume control of the defense of third-party claims, Your ability to recover for breaches putting the seller in the position of of representations made by the seller negotiating or litigating with what that you knew about or, perhaps more may be one of your best customers. accurately, that can be proven you e seller is motivated to minimize knew about prior to closing often de- its exposure to you under the pur- pends on the law the parties choose to chase agreement and is not neces- govern the purchase agreement. Not sarily concerned with the ongoing surprisingly, the parties often choose business relationship. erefore, you to be silent on the issue of sandbag- should consider carving out certain ging in the purchase agreement, third-party claims, such as claims by thereby subjecting the buyer’s ability major customers, from provisions in to recover from the seller to the make- the purchase agreement related to up of a breach of contract claim under assuming control of the defense of state law, and, in particular, whether third-party claims. reliance is a component of such a ese are just a few of the many claim. Some jurisdictions view it from ways your transaction can go side- a “contract” perspective — the parties ways following the closing. Keep negotiated the representations, and them in mind as you hurtle through the seller must stand behind them. the due diligence and negotiation Others require the buyer to demon- phases of the transaction toward the strate that it relied on the representa- signing of the purchase agreement — tions. And some take a hybrid ap- otherwise, you might nd yourself proach. As a buyer, whether you can burned. CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 19 Business of Life

A mix of pictures from the Beach Cli Beacon, East Hudson Living and Living (from Kingsbury Trace in Copley). (Barb Stitzer Photography, top and bottom right, and contributed photos) Neighborhood news: Social magazines help readers get to know the people down the street

By CHUCK SODER neighborhood magazines in this re- As for readers, the magazines give Monticello Living, which focuses on magazine, Living, which has focused gion.  e North Carolina-based com- them a window into the lives of their the Monticello neighborhood in on Copley’s Kingsbury Trace neigh- [email protected] pany helps independent publishers neighbors. Most stories are written North Canton. borhood. He also has published For- @ChuckSoder produce more than a thousand simi- about residents, by residents. A typi- As an example, Schuller described est Living in Rich eld’s Glencairn lar magazines nationwide. cal issue might include a feature on a a feature story about a man whose Forest neighborhood since July 2014.  ere is signi cant demand for family who just moved to the neigh- family recently moved to Hudson Notice that the neighborhoods Jason Pattee feels like he knows the these types of publications from both borhood, a Q&A with a high-achiev- from China. have speci c names.  e best com- people who live in Rocky River’s advertisers and readers, said Pattee, ing student athlete and a story about “After we ran a story about what it’s munities for N2 publications tend to Beach Cli One neighborhood. Even who in February 2015 launched a a resident giving their time to a char- like living in China versus what it’s be recognizable, which makes it easi- though he lives in Avon. second magazine called Straight to ity.  e magazines also organize like living in Hudson, Ohio, people er to get the attention of advertisers, How?  ree years ago, he founded the Pointe in Avon Lake’s Legacy neighborhood events, which often now come up to him and engage him he noted. the Beach Cli Beacon — a glossy Pointe neighborhood. are hosted by sponsors. in conversation.  ey feel like they It also helps if a neighborhood has a monthly magazine that focuses 100% Flip through one of his magazines  e magazines and events help have a sense of ... who he is,” Schuller welcoming home owners association, on the residents of Beach Cli One. and you’ll see ads on roughly every readers get to know their neighbors said. Pattee noted. He added that the resi- So he has spent the past three other page. Ads for plumbers, hair sa- on a deeper level, according to both Jerry Emich Jr. said he has readers dents of Beach Cli and Legacy Pointe years reading about their kids, their lons, home remodeling companies Pattee and Brian Schuller, who pub- “who have  led away every single have been extremely welcoming. vacations, their pets and their homes. and local stores — companies interest- lishes three N2 magazines: East Hud- publication.” “People in both neighborhoods  us, he gets it when readers tell him ed in reaching people in nearby, a u- son Living, North Hudson Living and In January 2011, Emich launched have been trying to recruit me for that the magazine helps them build ent neighborhoods, said Pattee, who the  rst local N2 years,” he said with a laugh. relationships with their neighbors. also serves as N2’s sales director for the “I hear stories all the time of resi- state of Michigan. dents, they’re walking their dogs out in the neighbor- hood and they see someone BeachA                         BCliff    C     | BEACON and say ‘Oh, I saw you on BEACON A P R I L 2 0 1 6 the front of the Beacon,’ ” BeachA       Cliff  B C | J ULY 2 0 1 6 said Pattee, who runs the publication with the help of D     Christine Bowen, a part- time editor who lives in the A S M E     R    K  T neighborhood. Over the past six years, Pat- tee and other entrepreneurs a liated with N2 Publishing have launched a total of 22 ivin PAGE 20 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch

With edgy, modern designs, Andrew Brickman of Cleveland-based Brickhaus Partners has put a distinctive, risky imprint on the region’s for-sale residential market. Brickman has built and is pursuing a total of $100 million in real estate projects on sites ranging from Cleveland Heights and Little Italy to western suburbs ringing the Rocky River valley. However, there’s another side to Brickman: the insatiable world traveler. He just got back from a 10-day trip with his two brothers originally designed to reach the base camp of Mt. Everest. Since one brother was delayed, they changed their plans to hike through four mountains of the Annapurna circuit in Nepal. “We had three Sherpas. We saw no other Western tourists,” Brickman said. “We ate rice and lentils the entire time, which is what the locals eat. We are so spoiled here in America compared to other parts of the world.” All told, Brickman has visited 49 countries to “see new places, experience new cultures and learn Andrew Brickman new ideas.” This year he’s also been to Prague, Abu REAL ESTATE Dhabi. Why consider Mt. Everest? He’d seen it on an earlier trip to a Buddhist monastery in Bhutan. — Stan Bullard

You’re listed as executive “Existing suburban two oce buildings to apartments producer on four independent downtown that became 1020 Huron Five Things: films. How did that happen? homes are so and The Osborne. I don’t have an I’m friends with author Scott Lax and ownership interest in either one, but I SINGER JIM BRICKMAN? got to know a lot of talented people inexpensive here. You learned a lot. Ken was a great He’s my cousin. I get asked while living in Los Angeles with a can find a house for mentor for me. that question five times a girlfriend who wanted to be an month. actress. When I see a script I like, I $75 a square foot. In What’s next on the project front? get behind it and help raise money. Is there anything we’ve not FIRST JOB, AND FIRST REAL The films include “Kings of Summer,” Washington, D.C., it covered? ESTATE JOB? and, most recently, “My Blind costs $1,000 a square I’m about to do a townhouse Right out of college I worked, Brother,” which had theatrical development in Beachwood I’ve been or maybe I interned, with the release in 21 cities. I was surprised it foot.” working on for three years. I’m also Council of Smaller Enterprises. didn’t do better. trying to do a lakefront development I’d majored in architecture and what it does everywhere else, but in Rocky River. I own two houses real estate but wanted to Lunch Spot Make any money in the movies? it’s hard to get the price to support across the street from The know what dierent You don’t do it expecting to get rich. quality. We push it all the time. Normandy. It’s designed as single- businesses are like. That Lockkeeper's I’ve been lucky to be successful in story living, which is what aging baby showed me. I started my 8001 Rockside Road my business. I like film and I like to What do you think of boomers want. It’s four stories tall brokerage career with King Valley View support new talent. If you buy an President-elect Donald Trump? but only looks like it’s two stories tall Group in Beachwood. 216-524-9404 Andy Warhol painting, you know Well, I didn’t support him. But he’s from Lake Road. There will be 30 what you have. Finding a new artist going to be our president. I hope he units of 1,500 to 3,000 square feet. WANT TO DO A The meal is much more interesting. can bring our country together. I’m They’ll start at $500,000. There are DOWNTOWN CLEVELAND Both had mixed greens sick of all the divisiveness. He’s also two dilapidated houses on it that are DEAL? called Frank’s Salad and Why did you move into home a real estate developer, so maybe going down. I need support from four I’m always looking for diet Cokes. One had building from oce leasing? he’ll be good for the development council people to get the zoning for opportunities. We’ve tomato-basil-artichoke I still do real estate (oce) business. it. There’s some opposition. But if it demolished 30 homes to start soup and chicken consulting with existing clients. I doesn’t pass, I won’t quit. I’ll keep One Seventeen in Ohio City on scallopini. The other: wanted to do housing styles that will Where did you grow up? talking to people until I find a way to the west end of Hope seared yellow-fin tuna. keep the best and the brightest in I lived in Warrensville Heights until I do it. Memorial Bridge. Cleveland and attract them here, was 7. Then we moved to Shaker especially in the city and inner-ring Heights. Where do you live now? WHAT’S YOUR FAVORITE The vibe suburbs. They’re walkable, have more I live in Hunting Valley. I rent a house. MUSIC IN THE CAR? It was a happy lunch character and you have more impact. Where did you go to college and I want to live at the project in Rocky I talk on the phone in the car. crowd. One table topped Plus, at the time, no one was doing what did you study? River. All the units will have views of o their meal with it. Now a lot of people are. I studied environmental design at the Lake Erie. DO ANY PROJECTS champagne. Next to the University of Colorado’s architecture OUTSIDE NORTHEAST Ohio & Erie Canalway, the What’s the hardest thing about program. However, I received a BS in How do you spend your free time OHIO? sophisticated interior has developing real estate in finance. besides traveling? I have some things in Florida photos and tasteful Northeast Ohio? I love to read. I’m reading a couple and Kiela Villas in Mexico. I paintings toasting the Existing suburban homes are so You had to learn residential business books. One is "Good to looked for something in Tulum canal era. inexpensive here. You can find a development somewhere. Where Great." I’m also reading "The Snow because it’s the most house for $75 a square foot. In was that? Leopard." I also do power yoga. I don’t beautiful beach in the world. Washington, D.C., it costs $1,000 a I worked with (real estate developer have the knees anymore for The bill $78.34 with tip square foot. Construction here costs and owner) Ken Simon on converting basketball and tennis. CRAIN’S CLEVELAND BUSINESS | DECEMBER 12 - 18, 2016 | PAGE 21

UH’s announcement in May 2015 ere have been some meetings to the East Side, it would be out of ser- years in overall health care delivery that it planned to open its own Level 1 outline a new regional trauma orga- vice and another would have to cover in the community. e most recent TRAUMA trauma center stirred communi- nization, Anderson said. He declined the area where it had been stationed. visible e ort being coordinating CONTINUED FROM PAGE 1 ty-wide debate. e plan was em- to provide detail other than to say, “I When UH came online, it lessened preparation for the Republican Na- braced by public o cials, particularly think as 2017 begins we’re going to the out-of-service times for EMS. tional Convention over the summer. Also within those months, UH ad- those on the East Side who felt there have some pretty good news.” ere wasn’t much of an e ect on re- Anderson said the ultimate measure mitted 1,450 patients with a trauma had been a void in the area for such Edward Eckart, assistant director sponse time, Eckart said, because of the success of two Level 1 trauma diagnosis and treated and discharged care since the Cleveland Clinic shut- of public safety for the city of Cleve- trauma accounts for only a couple centers will be improved outcomes. or transferred 604 patients with a tered Huron Hospital in East Cleve- land and member of the NOTS Advi- thousand of the roughly 75,000 peo- “ at same collaborative spirit that trauma diagnosis. land. Opponents, including Metro- sory board, would like to see UH at ple transported in a year. we felt preparing for and then being a e American College of Surgeons Health and the Northern Ohio Trauma the NOTS table, which he said is a If UH were to become a member of part of the RNC, how do we continue will visit UH in February to review its System, argued that the move was  - necessity in order for the group to NOTS, he said the shared data would to move that forward?” said Ander-  rst year and determine whether the nancially driven and that a competing reach its full potential. For EMS work, help give a full picture of what the son, who is leaving UH at the end of center will become a fully designated center could negatively a ect care. the addition of a second Level 1 cen- East Side Level 1 trauma center has the year to become president of the Level 1 adult trauma center. is e Northern Ohio Trauma Sys- ter has meant revamping protocols to meant. University of California San Francis- would be an addition to its Level 1 tem, or NOTS, is a regional trauma accommodate the decision-making “It’s a big piece of the pie that’s co Benio Children’s Hospital. “How Pediatric Trauma Center, which ad- network that brings together various process that now takes place on a missing from the overall picture of do people get rapid access to trauma mitted 669 patients from January entities involved in trauma work — scene to choose the appropriate hos- trauma within Northeast Ohio,” Eck- care? How does that trauma care through October this year. be it at Level 1, 2 or 3 centers — to pital, said Eckart, who oversees EMS art said. “It would be nice to see this continue to decrease mortality? ough the designation is an import- share data and protocols and review and  re for the city. loop  nally closed so that we’re all Quite frankly, how do we continue to ant milestone for UH and would shift outcomes and processes. ey’ve also had to make some op- functioning under the same guide- improve trauma prevention?” the adult trauma center from provision- As of now, UH is not a member, erational adjustments, he said. Previ- lines, same protocols.” If trauma outcomes are positive, al to full status, it doesn’t change capa- which Anderson said was a sore spot ously, when an ambulance was trans- Eckart commends the hospitals for then great, Boutros said. But if not, bility or operations, Anderson said. for many. porting a patient to MetroHealth from their collaboration in the past several “We’ve gotta  x it, because that’s lives.”

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Crain’s People on the Move promotional feature showcases Northeast Ohio job changes, promotions and board appointments. Guaranteed placement in print, online and in a weekly e-newsletter can be purchased at www.crainscleveland.com/peopleonthemove. NONPROFITS PROFESSIONAL SERVICES LAW LAW Nathan L. Weidemann Michael L. Snyder Of Counsel Partner and Chair, Energy Benesch Practice Group Benesch Nathan is of counsel in Benesch’s Commercial Finance & Banking Michael L. Snyder is a partner in Practice Group. He represents Benesch’s Litigation Practice, Chair nancial institutions, funds, public traded and of Benesch’s Energy Practice and a member of privately held companies, non-pro t and government Benesch’s Executive Committee. He has signi cant organizations, and individuals in connection with experience in product liability cases and manages Eric Pelander Pallavi Verma nance, real estate, and general business multi-state product liability cases (including wrongful transactions. death cases), as lead counsel for multiple clients. OhioGuidestone Board Chair Senior Managing Director Michael also serves as lead counsel for a number of OhioGuidestone U.S. Midwest companies involved in various aspects of shale Accenture exploration, drilling and extraction. Eric Pelander has been unanimously voted as Addisah Sherwood board chair of OhioGuidestone, a 152-year-old Pallavi Verma, senior managing director-U.S. Associate nonpro t headquartered in Berea that serves Midwest, will lead Accenture’s business in 12 Benesch Steven T. Golden 27,000 people in nine Ohio counties. Mr. states: Illinois, Indiana, Iowa, Kansas, Michigan, Associate Pelander, who has served on the 35-member Minnesota, Missouri, Nebraska, North Dakota, Addisah focuses her practice on all Board for several years, is founder and managing Ohio, South Dakota and Wisconsin. Based in aspects of the acquisition, Benesch director at Waterstone Management Group, LLC. Chicago, she will focus on bringing innovation to nancing, development, leasing, Mr. Pelander holds a Master’s degree in Business clients, attracting top talent and strengthening management, exchange, and disposition of Steve is an associate in Benesch’s Administration from Harvard University and a the company’s impact in its local communities. commercial, industrial and residential properties. Corporate & Securities Practice Bachelor’s degree in Business Administration She also counsels clients on real estate investment Group. He has a wide range of from the College of William and Mary. transactions and entity formation. corporate and business experience, including INSURANCE mergers and acquisitions, debt and equity FINANCIAL SERVICES issuances, business formations, stockholder Farnaz Ansari Berna arrangements and fairness opinions. He has Stewart Rea Vice President, Marketing Jerome W. Cook counseled clients on U.S. and cross-border Senior Vice President, and Sales Partner transactions involving a variety of deal structures. Investment Real Estate Banker Insurance Board Benesch He has also counseled clients on matters relating to First National Bank corporate governance and securities compliance. Farnaz joins the IB after a long Jerome Cook is a partner in Rea works closely with clients in the career at PNC Bank where she was Benesch’s Litigation Practice Group. Akron and Canton markets in Ohio VP, Wealth Management Relationship Strategist. In He has signi cant experience For more information or questions to develop real estate nancing solutions to support her new role, Farnaz will enhance the IB’s relation- resolving client disputes involving residential and regarding advertising in this their ongoing capital needs, including construction ships with its distribution partners to further growth. commercial real estate and construction matters. He and redevelopment loans and other growth-oriented She sits on the Cleveland Metropolitan Bar has over 10 years of experience in the specialized section, please call Lynn Calcaterra transactions. Rea has more than 28 years of Foundation’s board of trustees, and is a member of representation of natural gas pipeline utilities at 216-771-5276 banking experience in Northeast Ohio, including the Lorain County Bar Association’s Ethics & Grievance including right of way protection, eminent domain last ve years as a Senior Vice President of Committee as well as Vice Chair of the Community right of acquisition, FERC certi cate holder represen- or email: Commercial Real Estate for FirstMerit Bank in Akron. Foundation of Lorain County. Farnaz is a graduate of tation and relocation reimbursement litigation. [email protected] Kent State University. PAGE 22 | DECEMBER 12 - 18, 2016 | CRAIN’S CLEVELAND BUSINESS

states,” according to the organiza- a particular industry, only partial nato said, “become very fed up with tion’s Accountable USA report. clawbacks or changes in agreement all the impairments. In my surmis- TAX ODSA, Goodman said, does not terms were sought, not a cancellation RATNER ing, that is when the family called CONTINUED FROM PAGE 1 expect to reach 100% compliance. of the incentive. CONTINUED FROM PAGE 1 their advisers and said they would “We realize we’re taking risks when In a presentation late last month to look closer at the proposal.” Even so, Leon Polott, president of AlSher we invest state dollars in job creation Cleveland City Council, Mayor Frank e families manage the Class B the gain in Forest City stock after the Titania and its Cleveland-based par- and the capital investment plans of Jackson’s economic development di- shares as a group through RMS Ltd., proposed pact went public allowed it ent, 5iTech LLC, said his company’s these companies,” he said. “But we’re rector Tracey Nichols reported that a partnership that holds and admin- to regain ground to where it was be- growths plans have stalled because it doing a better job of identifying good 12 of 19 loans reviewed were in com- isters Class B stock contributed to it fore the third-quarter nancial re- has been hit hard by the dip in the oil investments.” pliance and the seven that were not by members of the founding fami- sults were released. and gas industry. “ e clawback is Goodman credited JobsOhio, the in full compliance were considered lies whose initials form RMS. Grap- Although Scopia management, just a bump in the road,” he said of state business attraction nonprot, making signicant enough progress pling with governance nally moved Forest City’s third-largest investor, the loss of the state grant money. and its network of regional economic to justify not canceling all or part of to the fore after a multitude of di- jointly announced with the company at kind of swing and a miss is development agencies with provid- the nancing extended. cult moves since 2011. Exiting the support for the proposed plan, an- unusual. But it’s not uncommon for a ing ODSA good projects to invest in. One loan, to Arbor Park Place LLC, land development business, selling other long-term, major investor in company to achieve 90% of its target, He also said that while some compa- was continued even though it had its cash-rich military housing busi- Forest City played a behind-the- or, for that matter to exceed the goal nies didn’t deliver on their job cre- created only 63% of the anticipated ness and this year’s dramatic con- scenes role in the events. Moreover, by 10% or more. So agencies give ation promises, overall, businesses in jobs. e developer made 100% of version to a real estate investment the change in Forest City holdings by companies some leeway before can- ODSA programs in 2015 actually the agreed-upon nancial invest- trust have not adequately boosted ird Avenue Management, a multi- celing a tax credit or seeking a return added 119% of the jobs agreed to in ment and keeping the Arbor Park the rm’s languishing share price billion-dollar investment fund, epit- of a grant. their incentive agreements. Place shopping center open, which is with respect to the value of its prop- omize Forest City’s woes with inves- “It’s not an exact science,” said anchored by a Dave’s supermarket, is erty holdings. tors. Peggy Weil Dorfman, Solon’s eco- Staying in line considered an important neighbor- While the rm has some things left On Oct. 4, 2011, ird Avenue sug- nomic development manager. hood asset. to do to improve its currency with gested in an SEC ling that Forest ODSA director David Goodman, JobsOhio began oering incen- Similarly, all 125 awards reviewed Wall Street, the proposed pact to re- City consider a long list of steps to told Crain’s compliance with the tives in 2014 and made its rst pass at by 16 Cuyahoga communities, Sum- place the founding families Class B improve operations and consider un- goals set in nancial incentive evaluating its programs in its recently mit County and the city of Akron shares with 1.31 shares of Class A folding the dual share structure — at agreements is improving and the at- released “2015 Metric Evaluation.” were determined to be compliant shares is likely the biggest, or bitter- the time, almost 20 million shares of torney general’s reporting, which JobsOhio found that the 31 compa- with the terms of their awards. est, step to take. Forest City stock, or 13.3% of the began in 2011, backs that up. In nies whose incentive programs were One exception is Solon, which in shares. Now ird Avenue is Forest 2011, the compliance rate was 59.1% evaluated created 558 jobs and xed September rescinded job creation The market responds City’s 12th-largest shareholder, ac- and has been rising annually to this asset investments of $117 million. In grants to two companies, Techtron cording to its most recent SEC ling year’s 84.8%. both cases, those achievements ex- Systems and Valtronic Technologies, e stock market certainly liked the on Sept. 30, with 5 million shares. Typically, a company is consid- ceeded the original commitments after they failed to meet job or payroll idea: Forest City stock climbed almost Moreover, ird Avenue sold 371,000 ered to be falling short if it creates the companies made, creating 117% creations goals for three consecutive 9% between the opening price of shares in the prior quarter, the ling less than 75% of the jobs promised or of the jobs expected and 133% of the years. $19.80 a share Tuesday, Dec. 6, when said. the investment made. Depending on capital investment. “Most of the companies we work the pact was proposed and the close A ird Avenue Management me- the specics of how a company is But JobsOhio, a private nonprot with are generally compliant,” said at $21.18 on ursday, Dec. 8. dia contact, Dan Gagnier, said its falling short, ODSA or another agen- corporation that benets from the Dorfman. “We try to accommodate Paul Adornato, senior REIT ana- management declined to comment cy may reduce a six-year tax credit to prots of the state’s liquor monopoly, the fact that things can change and lyst at BMO Capital Markets in on its sentiment about the company perhaps three years or raise a loan does not disclose details about its in- we try to give companies some lee- New York City, said in a phone in- accepting its long-ago dual share interest rate one or two percentage ternal operations, so its evaluation w a y .” terview he had thought the stock idea. points. report does not identify how individ- Solon expects a company to meet would tank after the announce- However, in an Oct. 30 report to Good Jobs First, a nonprot watch- ual companies performed. 75% of its goal. If it misses that target ment in October by the indepen- investors, Third Avenue said it dog group based in Washington, e economic development agen- in a single year, the tax credit will be dent directors that RMS could not likes Forest City and two other D.C., that is generally critical of gov- cies of Northeast Ohio cities and lost for that year, but it would be rein- strike a deal. Instead, it fell after property companies, Brookfield ernment incentive programs and the counties have a longer history of stated for the following year. Meeting Forest City announced Nov. 3 in its Asset Management of Toronto and way incentives are monitored, be- monitoring nancial incentives. In 85% of the goal would mean a reduc- third-quarter financial results it Vornado Realty Trust of New York, lieves Ohio’s current disclosure prac- fact, all agencies contacted reported tion in the credit. But if the goal is was taking a $300 million impair- because they have substantial tices do not provide suciently de- 100% “substantial compliance” with missed for three consecutive years, ment charge on its Pacific Park de- holdings in major cities that can tailed information, “but are useful nancial incentive goals. at means the credit is withdrawn. velopment in Brooklyn, a joint benefit from growing urbanization tools nonetheless. Ohio’s economic that while some goals may not be ful- Executives from Techtron and Val- venture with The Greenland Group and the rising popularity of city development spending is substantial ly achieved because of changes in the tronic did not return email requests of China. apartments. PAGEbut 22more μ DECEMBER transparent 12, 2016 than μ in CRAIN'S most CLEVELANDbusiness climate BUSINESS or the conditions in for comment by press time. “Investors had, in my mind,” Ador- CONTINUES ON NEXT PAGE REAL ESTATE CLASSIFIED Phone: (216) 771-5276 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Lynn Calcaterra E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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Here to stay eration, the largest concentration of City chairman, stressed the decision Almost all in the Ratner family Forest City properties. advances the company’s evolution. Even with the proposed changes, Agreeing to give up the dual share “After carefully reviewing the com- Charles Ratner, Forest City chairman of the board, RMS will still play a big role at Forest City structure is perhaps more signi cant for pany’s options to further enhance val- former CEO if shareholders approve the plan to give the company than another big move, ue for shareholders, we determined At year’s end, will retire and leave the board after 50 years holders of Class B shares 1.31 shares of the naming ve years ago of LaRue as that now is the right time to collapse with the company. Credited with launching multiple Class A shares. Between those and an- the rst non-Ratner to serve as CEO. the dual-class structure,” Charles Rat- measures to modernize Forest City operations. other 7.4 million Class A shares it al- Charles Schulman, president of ner said Dec. 7. “Today’s announce- ready holds, RMS would own 30 million Beachwood-based Carlyle Manage- ment will strengthen the Company’s shares of Forest City, or 11% of the stock. ment real estate rm, grew up know- corporate governance pro le by align- James Ratner, executive vice president of RMS would be the second-largest share- ing the Ratners because his father did ing voting rights with the economic in- development holder, only behind mutual fund power- business with Forest City, including terests of all our shareholders. We are Will be appointed to the board as executive chairman. house Vanguard, based on current SEC heading the company that sold Ter- pleased to have reached an agreement When that occurs, he will relinquish management lings. In other words, it would be a ma- minal Tower to Forest City. He sees and are con dent that Forest City is responsibilities at the company as executive vice jor shareholder rather than a minority the founding families relaxing their well-positioned for the future.” president of development. He has been with the company shareholder with voting control. grip on the company as a major move. If adopted, the change also signals for 40 years. Moreover, under the agreement, “It’s a courageous move on their the end of the unique family atmo- Brian Ratner and Deborah Ratner Sal- part,” Schulman said in an interview sphere that surfaced at Forest City’s zberg or other RMS appointees would Dec. 8. “It changes the way they (family annual meetings. Brian Ratner, Forest City executive vice president, remain board members through 2020 members) are perceived around town.” When Charles Ratner began his heads its Texas o ce as long as RMS continues to hold a Schulman is certain the proposed 16-year tenure as president and CEO He is a 20-year veteran of the company and board certain percentage of shares. Both are change is yet another long-planned, in 1995, Sam Miller, now co-chair- member since 2001. He is one of three Ratner family adult children of longtime former much-studied move by RMS. “ey’re man emeritus, remembered taking members able to continue to hold board seats if the share CEO Albert Ratner, now co-chairman not the kind of operators who ever his nephew on a trip to downtown pact is approved. emeritus. ey run major out-of-town jumped into anything,” Schulman said. Cleveland as a lad dressed by his operations for Forest City in markets Until, in this case, when they were mother “in a sailor suit.” the company plans to continue focus- pushed after many other draconian e change also will turn the page Deborah Ratner Salzberg, president of Forest City ing on. Brian Ratner runs Forest City’s steps failed to produce results. on a generation that took Forest City Washington, D.C. Dallas oce and Salzberg its Wash- Previously, LaRue and Robert from a big regional developer to a na- A former justice department attorney, she has worked ington, D.C., oce. O’Brien, chief nancial ocer, had tional one. e spirit of the change also at Forest City since 1985 and has been a board member e proposed agreement also calls said on conference calls the company follows the company’s sale of its most since 1995. for James Ratner to become executive would consider the dual-share struc- high-pro le property here, with K&D chairman. He replaces former CEO ture after steps to improve its books Group of Willoughby buying Terminal Charles Ratner as chairman after he re- and operations if the stock did not rise. Tower and aliates of Cavaliers owner David LaRue, CEO and president tires at the end of this month. Charles BMO’s Adornato estimates the Dan Gilbert buying e Avenue. Has worked at the company since 1986. He became a Ratner’s director’s seat will be one of company should be worth $31.40 a e late Max Ratner, at an annual director when he was named CEO in 2011. two held by new independent directors. share if its underlying real estate port- meeting of stockholders in the 1980s, at shift also ts CEO David folio is properly valued. at is a long remarked on the company’s growth LaRue’s streamlined reorganization of way from the current share price. by recalling how as a boy he helped the company. e move would leave “is opens up the situation so that unload lumber from rail cars for the Ron Ratner, executive vice president of development Ronald Ratner as head of its develop- investors, both current and future, can family’s new garage-building busi- ment unit, a post originally shared take a better look at Forest City opera- ness. And the company since went Will become the executive vice president in charge of with James Ratner. Board member tions,” Adornato said. “We don’t have from garages to a lumber yard with a Forest City’s development unit when James Ratner, who Bruce Ratner will also step down from to focus on this very big negative.” chain of do-it-yourself stores and, - shares the same job, leaves management. Ron Ratner has the board by year-end, though he will In the news release announcing the nally, to solely real estate, but with been a director since 1985. continue working at its New York op- agreements, Charles Ratner, Forest properties spanning the nation.

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