VOL. 38, NO. 11 MARCH 13 - 19, 2017

Source Lunch It’s a ‘crisis’ Center tries to fi nd way to tackle antibiotic resistance. Page 2

Yve e I u, president of The List Cleveland Development CLEVELAND BUSINESS NEO’s largest employee Advisors Page 23 benefi t fi rms Page 18

SMALL BUSINESS Walking 15 states in four15 states, months four months On his 3,600-mile walk across the United States, SmartShape Design founder Mike Maczuzak wore out four pairs of shoes and endured temperatures as high as 120 degrees in the Mojave Desert.

1 23 67 14 8 4 12 11 5 15 10 9 13

1. New York 9. Missouri 2. New Jersey 10. Kansas 3. Pennsylvania 11. Colorado 4. Maryland 12. Utah 5. West Virginia 13. Arizona 6. Ohio 14. Nevada 7. Indiana 15. California 8. Illinois Crain’s map, via VectorTemplates.com

SmartShape Design founder Mike Maczuzak stands on the rim of Bryce Canyon, Utah — the 12th state he walked through. Find the story and more pictures, Page 12. (Contributed photo)

REAL ESTATE SPORTS BUSINESS Who’s investing Retail vacancy rises, Private buyers were investing in ‘Legit’ BoxCast poised Cleveland metro commercial real estate at a much higher rate in 2016, for a breakout year but so does the rent compared to the national average and to the Cleveland market of 2015. By KEVIN KLEPS Gordon Daily believes the company By STAN BULLARD by oversupply and competition from User/Other Institutional is primed to really take  ight. the internet. [email protected]  at eventually could mean a Private Cross-border [email protected] CBRE estimates the region has Public listed/REITs @KevinKleps move from its airport headquarters, @CrainRltywriter 11.7% retail vacancy as of year-end but Daily is much more focused on 100% 2016 from 10.3% a year ago. Howev- In a back room reserved for Box- the months ahead, which will in- Following trends in national retail- er, regional asking rental rates Cast’s employee pingpong tourna- clude the unveiling of a new product, ing and its own market, CBRE Group climbed to $12.13 a square foot at ments, a sta er on a recent afternoon another fundraising round and addi- Inc. has started reporting downtown year-end 2016 from $12.02 a square 75% was on a sales call — taking advantage tional hires. Cleveland statistics as part of its foot a year ago. of what might have been the only quiet In late December, BoxCast reported just-completed annual retail survey In-demand retail locations are space in the company’s second- oor raising $1.43 million in a $2 million covering eight Northeast Ohio coun- able to command far higher rates 50% o ces at Burke Lakefront Airport. round that disclosed a notable new ties. than the regional ask, with taking When the startup, which delivers board member: Sam Gerace, the CEO CBRE reported downtown vacan- rates at some new retail centers high-de nition streaming services to of Veritix until it was acquired by AXS cy at 10.4% among the 1.6 million commanding rents of $40 a square 25% a wide array of businesses, teams and in 2015. Gerace, who has been an ad- square feet of selling space on the foot. Adding more downtown re- organizations, moved into the viser since BoxCast hired its  rst em- city’s broad thoroughfares and the tail specifics required the realty 3,600-square-foot spot in 2013, it had ployee, has been the founder and/or long-su ering enclosed malls  e brokerage to rejigger its approach only a handful of employees. Now, leader of  ve tech startups (most re- Avenue and Galleria. for a different selling environ- 2015 2016 2016 with 27 full-time employees, plus a cently LaunchVector, a 5-month-old Surprisingly, that’s not far from ment. Cleveland U.S. avg. collection of contractors and well- software company). areawide averages as retail gets roiled SEE CBRE , PAGE 19 Source: Real Capital Analytics heeled advisers, BoxCast co-founder SEE BOXCAST , PAGE 22

Entire contents © 2017 by Crain Communications Inc. Akron: New life for the Portage County Municipal Courthouse in Kent. Page 21 PAGE 2 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS Attempting to cure antibiotic resistance Case Western-Cleveland VA center aims to solve ‘one of the biggest threats to global health’ By LYDIA COUTRÉ “As a result of this escalating crisis, we’ve microbiology, molecular biology, biochemistry, pharmacology, pro- [email protected] been faced with challenges clinically. The teomics and bioinformatics. Over the @LydiaCoutre next few years, the goal is to bring challenges that the future holds (are) even about three new recruits to Cleve- In the 1990s, when Dr. Robert land to join the center with a focus on Bonomo began studying how bacte- more scary than the present. ... The junior people to mentor and develop ria became resistant to antibiotics, he over time, Chance said. had a limited view of the issue. antibiotics that we have now are not going “It’s part of the brain gain strategy At the time, he and his peers to be able to stop resistance. We have to of building high-quality programs thought resistance was just what they around the medical school, around could observe, but unfortunately, the think of other ways.” the university, leveraging the assets problem has escalated, said Bono- in Cleveland,” he said. mo, medical service chief at the Lou- — Dr. Robert Bonomo, medical service chief at the Louis Stokes Cleveland VA Cleveland can be a bit “pi- is Stokes Cleveland VA Medical Cen- Medical Center, and professor at the CWRU School of Medicine geon-holed” as a medical device ter. Today, the World Health town, Chance said, but it can become Organization calls antibiotic resis- equally successful in other biotech tance “one of the biggest threats to areas. Case VA CARES is a step to- global health, food security and de- ward that. velopment today.” “We’re already recognized for be- With this in mind, Case Western ing a great health care center,” said Reserve University School of Medi- Bonomo, who also is a member of the cine and the Cleveland VA have National Institutes of Health-funded teamed up to study and tackle antibi- a news release. Studies show antibi- ers are crucial, he said. work over his more than two decades Antimicrobial Resistance Leadership otic resistance through the establish- otic resistance adds as much as $20 Roughly a dozen physicians and of work, during which he published Group, which addresses priorities for ment of a new center. billion per year in excess direct scientists have been collaborating nearly 340 peer-reviewed manu- clinical research on antibiotic resis- Bonomo will be the director of the health care costs. with Bonomo for years and have scripts of original research in scien- tance. new Case VA CARES (CWRU-Cleve- “ e antibiotics that we have now published about 100 papers in total. tic journals. “I think this broadens the impact land VAMC Center for Antimicrobial are not going to be able to stop resis- Case VA CARES formalizes this Mark Chance, vice dean for re- of the health care delivery that Cleve- Resistance and Epidemiology), tance,” Bonomo said. “We have to work and is a timely partnership for a search at the CWRU School of Medi- land can bring and lead for the rest of which will include work ranging from think of other ways.” “critically important problem,” said cine, said the new center both recog- the world,” Bonomo said. basic science to drug discovery to Every year, at least 2 million people Dr. Murray Altose, chief of sta at the nizes Bonomo’s accomplishments Although the center is a partner- new treatment approaches. in the United States are infected with Cleveland VA. It provides a more sys- and gives him a foundation to ex- ship between CWRU and the VA, “As a result of this escalating crisis, antibiotic-resistant bacteria and at tematic, organized approach to coor- pand his work with new faculty and Chance said that medical aliations we’ve been faced with challenges least 23,000 die as a result, according dinating basic science, clinical sci- recruits, as well as the involvement of or appointments in other hospitals clinically,” said Bonomo, who also is to the Centers for Disease Control ence and patient care, he said. other departments. across the city will help make the ef- a professor at the CWRU School of and Prevention. Scientists and physicians with e loosely aliated group of re- fort Cleveland-wide. Medicine. “ e challenges that the e inappropriate use of antibiot- Case VA CARES will conduct new re- searchers that have studied antibiot- “We want to make sure the re- future holds (are) even more scary ics in humans and in livestock have search, modify existing antibiotics, ic resistance with Bonomo have searchers have the maximum oppor- than the present.” contributed to the growth in antibiot- work toward new ones and use de- many strengths, Chance said, but tunities for collaboration with other Increasingly, bacteria and other ic resistance, Bonomo said — plus coys to trick uncooperative bacteria. there are some gaps that the new researchers, that they have the best microorganisms are developing re- the “inevitable consequence of evo- e new center, one of only a center can help to ll as CWRU and equipment, and just sort of a level sistance to the antibiotics used to kill lution,” as bacteria ght to survive. handful of its kind in the country, is the VA pool resources. playing eld across the entire city them, both imperiling health and Because the problem is a moving likely to benet from Bonomo’s con- e center’s faculty members will where they can go wherever they adding to health care costs as doctors target, the center and a multidisci- nections to labs and scientists around come from both organizations and need to go to get things done,” try dierent medicines, according to plinary group of dedicated research- the world. He developed this net- have expertise in infectious diseases, Chance said.

What’s Your Competitive Advantage? STEPHEN F In business today, often the only advantage over your competition FORMER COO, LUBRIZOL is the talented people who work for you. At Nesco Resource, we TREASURER, put over 60 years of experience into our work with companies to CSU BOARD OF TRUSTEES understand their needs and find the right talent to meet their goals.

From tech startups to industrial giants, we’re matching talent with opportunity to grow business. And with some of the highest Take it from satisfaction ratings in the industry, Nesco Resource is working for someone who both the companies and talent we serve. earned his MBA there: Four out of Let Nesco Work For Yo u fi ve CSU graduates www.nescoresource.com/works stay in the region, providing the human capital that powers Northeast Ohio. A Nesco, Inc. Company

Nesco Resource is a wholly owned subsidiary of Nesco Inc., a privately held diversified holding company focused on sectors including manufacturing, human resource services, and real estate. CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 3 Security firm unlocks its growth potential Certified Security Solutions is part of crowded field, but sees ‘significant’ chance to expand By JAY MILLER internet-linked computer or device How PKI security of those devices, the eld has attract- German software rm behind only has the digital equivalent of a driver’s ed a lot of competition. “It’s a fairly Microsoft and Oracle on Forbes mag- [email protected] license, called a certicate, to identify keeps you safe competitive environment. ere’s a azine’s list of the world’s largest soft- @millerjh itself. When you log your computer on A PKI, or public key infrastructure, is lot of mom-and-pop players in the IoT ware rms, agreed to make CSS’s PKI to a bank’s or online seller’s website, the software that controls the security space,” von Keyserling said. certicate management software According to leaked emails, the the receiver can check your ID and security of many online transactions. “So it’s fairly fragmented, and over the available with SAP’s cloud platform CIA can listen in on conversations move you onto its secure server (you Here’s a simplified view of how it course of the next three to ve years, I for the Internet of ings. through a turned-o television set. see the lock on your address bar). But works: would expect a lot of consolidation.” e company is venture nanced, at revelation from WikiLeaks it isn’t yet able to see your purchase or CSS has been in business since von Keyserling said. Among its inves- shines a spotlight on the work of In- credit card information, you may not 1. Every internet-linked computer or 2003, starting as a security consul- tors are two Michigan rms. One, who dependence-based Certied Securi- realize, you’ve encrypted. device has a certificate to identify tancy. It moved to Independence in he declined to name, is in the automo- ty Solutions (CSS), which works in an Your bank or retailer then sends itself. Think of it as a digital equive- 2009, when von Keyserling was tive industry. e other is Plymouth important sector of the cybersecurity your message back to you with what’s lent of a driver’s license. named CEO. He was already living in Ventures of Ann Arbor, which invests business. Among its customers are called an encryption key. Now, your 2. When you log on to a business the area and wanted to stay here. in post-startup rms. It made an undis- corporations who need a secure way computer will send your credit card website to make a purchase, the e company has 100 employees, closed investment in CSS in 2015. to communicate with their custom- information. But since the business business’ computer verifies your ID and 60 of them in Independence, the oth- “CSS has developed a unique soft- ers. It also has begun to provide for its sent you one of their encryption keys moves you onto its secure server. But it ers scattered around the country. ware platform providing issuance, corporate clients secure communi- and applied its encryption to your isn’t yet able to see your purchase or “We’re growing faster than antici- management and reporting solutions cations links between their clients’ message, only the business can open credit card information, because that pated,” von Keyserling said. “We’ll dou- needed for nearly all companies who customers and the internet-linked the purchase information. information is encrypted. ble in size every year for three years.” wish to securely manage their identi- devices they’ve sold them. Seemingly, a simple system. But Some of those employees are com- cation and authentication needs, “at’s where our service comes your bank or retailer has to keep 3. The bank or retailer then sends ing from local universities, including Mark Horne, Plymouth Ventures CEO in,” said company president and CEO track of hundreds of thousands, even your message back to you with an through co-op programs with Case said at the time of the investment. Kevin von Keyserling. “It allows you millions, of those transactions. encryption key for their system. Western Reserve University and the “e software platform is the culmi- to essentially do what we think of as CSS software manages those en- 4. Your computer then sends your University of Akron. “We try to con- nation of nearly 13 years of experience the fundamentals of operating a PKI.” cryption keys and the rest of the se- credit card information. Because the vince them to become full-time em- setting up the most robust and secure A PKI, or public key infrastructure, curity involved in those transactions business sent you one of their ployees when they graduate, and infrastructures within some of the is the software that controls the locks on both corporate servers and on encryption keys and applied its that’s been working pretty well for largest corporations in the world.” on the doors of many transactions. computing clouds. It’s working in a encryption to your message, only they us,” von Keyserling said. “We’re get- As a venture nanced rm in a PKIs have been used for years by crowded eld, but the opportunities can open it, keeping your purchase ting some really great talent here.” eld where consolidation is likely, banks and e-commerce rms. In- are large as the IoT market explodes. information secure. CSS is privately held and does not von Keyserling acknowledges CSS creasingly, PKIs are used to secure “ere’s a signicant opportunity disclose nancial information. e could be a merger candidate down communications with devices — ev- for CSS to provide a software piece of billion devices connected to the in- CEO also would not disclose custom- the road. erything ranging from home security glue to help glue the security model ternet by 2020, up from 10 billion to- ers, though he said the CSS software “I would expect we would become systems to medical devices to auton- together,” von Keyserling said. “It’s day. Most of that growth will come platform is up and running at 100 of an attractive acquisition candidate as omous vehicles. e devices that going to grow exponentially over the from IoT devices and $6 trillion dol- the Fortune 500 companies, including we grow and prove out the model make up what is being called the In- next ve to seven years.” lars will be spent on IoT solutions in the automotive industry, helicopter and the recurring revenue grows,” he ternet of ings, or IoT. BI Intelligence, a research service, over the next ve years. and medical device industries. said. “Although, I’m having an awful PKI security works like this. Every estimated last August there will be 34 Since security will be critical to all Last year, the company and SAP, a lot of fun.”

NORTHEAST OHIO COMMERCIAL REAL ESTATE LEADERS INVESTMENTS, SALES, LEASING, MANAGEMENT AND ADVISORY

RECENTLY- COMPLETED TRANSACTIONS FEATURED LISTINGS

INVESTMENT SALE INVESTMENT SALE FOR LEASE FOR LEASE

800 Nave Road, Massillon, OH 1933 Highland Road, Twinsburg, OH Seller representation; 85,000 sq. ft. Seller representation; 62,200 sq. ft. 14720 Foltz Industrial Pkwy., Strongsville, OH 5821 Harper Road, Solon, OH Sold for $6,200,000 ($73.18/sq. ft.); 8.0% cap rate Sold for $2,520,000 ($40.51/sq. ft.); 10.5% cap rate 336,880 sq. ft. industrial spec warehouse/office Up to 40,000 sq. ft. available (flex, office, showroom)

INDUSTRIAL USER SALE INDUSTRIAL USER SALE FOR LEASE FOR LEASE

22720 Stelfast Parkway, Strongsville, OH 787 Renaissance Parkway, Painesville, OH Seller representation; 100,000 sq. ft. Seller representation; 110,669 sq. ft. Higbee Bldg., 100 Public Sq., Cleveland 17000 Rockside Road, Maple Heights, OH Sold for $5,000,000 ($50.00/sq. ft.) Sold for $4,200,000 ($37.95/sq. ft.) Up to 103,000 sq. ft. of office space 86,521 sq. ft. industrial building

INDUSTRIAL LEASE INDUSTRIAL LEASES FOR SALE/INVESMENT FOR SALE/INVESMENT

365 Victoria Road, Austintown, OH 8037 Bavaria Road, Twinsburg, OH Landlord representation Landlord representation 5180 Greenwich Road, Seville, OH 365-375 Victoria Road, Austintown, OH 207,160 sq. ft. lease 99,200 sq. ft. (between two tenants) 270,000 sq. ft.; 100%-occupied absolute net lease 866,627 sq. ft. industrial building; 92% occupied

For all property sale and lease TERRY COYNE, SIOR, CCIM availabilities, as well as Contact Terry today to discuss your VICE CHAIRMAN commercial real estate needs commercial real estate news 216.453.3001 Visit www.TerryCoyne.com [email protected] PAGE 4 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS Spicer’s comments put scare into pot business But Ohio activists say industry has no plans of slowing

By JEREMY NOBILE whether an administration looking that would most likely go to the Su- unfavorably on marijuana — which preme Court. [email protected] remains a prohibited Schedule 1 “You have so many states where @JeremyNobile drug in the same class as heroin — in this is happening and the market has general could shape statewide poli- grown so much,” Murphy said. “It White House press secretary Sean cies on the substance. would be very, very dicult to put Spicer’s recent commentary suggest- Ohio, after all, is in the midst of - Pandora back in the box.” ing the federal government could nalizing a litany of rules for its medi- And besides that, the federal gov- crack down on states permitting rec- cal program. Rules for cultivators are ernment doesn’t have police power. reational use of marijuana exacer- to be adopted by May 6, and dead- Would that government send in the bated what tends to be mixed mes- lines for other rules stagger behind Army or federal agents to shut down saging on the treatment of an that through next September. small dispensaries? industry whose mere existence de- Garett Fortune, CEO of FunkSac, a Is it possible? Sure. It is it likely? es federal laws. Denver-headquartered company e consensus among most experts at sent chills down the spines of founded on Cleveland's West Side is no. businesspeople across the country that makes child-resistant, odor- But that doesn’t mean the fog of working in the myriad industries le- proof plastic bags for the pharma- uncertainty hanging over the indus- galized marijuana touches, from cul- ceutical industry and legal cannabis, try will lift anytime soon without fed- tivators, processors and dispensaries among other end-users, said the anx- eral laws being addressed. e same to their bevy of supporting opera- iety that washed over the industry risks persist. tions. And that included investors was relatively short-lived. e com- “Some will say the federal gov- and entrepreneurs in Ohio, where a pany, which does a lot of business ernment can’t really enforce this, medical marijuana program now six out West, still has manufacturing op- which I don’t necessarily agree months in development is to be up with,” said David Croft, a lawyer and running by September 2018. with Meyers Roman Friedberg & e initial reaction from most “As an attorney, we Lewis who also works with current THE KEY stakeholders and aspiring cannabis make sure clients and aspiring businesspeople and businesspeople was one of concern, investors in the cannabis industry. said Kevin Murphy, a Cleve- know that whether “As an attorney, we make sure cli- land-based lawyer at Walter | Haver- ents know that whether it’s medical TO YOUR eld LLP who works with marijuana it’s medical or or recreational, it’s still currently il- business owners and investors across legal federally. the country. recreational, it’s still “So folks outside the state are ei- NEXT DEAL Attorneys like Murphy spent a few ther up in arms, or where they were days after Spicer’s Feb. 23 press con- currently illegal before: wait and see. Ohio is kind of ference calming fretful clients. Can, in a wait-and-see mode. But every- or will, the government really go after federally.” one is still moving forward, especial- recreational marijuana? Could an ly in Ohio, where everyone has been — David Croft, a lawyer with Meyers administration’s anti-marijuana cautious because of the risks.” Roman Friedberg & Lewis platform bleed impact medical pro- Interestingly, though, risk is what grams? draws some investors to marijuana in Purchase and Refi nance How could all this aect an indus- erations based here and isn’t con- the rst place. Any business sur- Commercial Real Estate try supported by medical marijuana cerned that business will be nega- rounded in risk has potential to yield Loans up to $10,000,000.00 + programs in 21 states and recreation- tively aected or that a program in even bigger rewards. And because al use in another eight? Ohio would be thrown o course by the risk is out there, most large com- Contact Jonathan A. Mokri Spicer’s comments came in re- Washington. panies aren’t pursuing the cannabis sponse to a reporter’s question about “ose comments were made o- industry, which is creating openings 440.526.8700 recreational marijuana use. the-cu, and there was a quick reac- for smaller and medium-sized busi- [email protected] “I think that is a question for the tion. But now, everything is starting nesses to get involved. www.cbscuso.com Department of Justice,” he said. “I do to play out as normal,” Fortune said. When Fortune says he’s seeing ac- Providing Commercial Loan Financing in believe you'll see greater enforce- “I’m not seeing anything slow down. tivity increase, that’s where the mo- Partnership with Area Credit Unions SM ment of it. Because again there is a In fact, I’m seeing things increase.” mentum in the market is driving big dierence between the medical Fortune was referencing business from. use … that’s very dierent from the activity in states like Colorado, Neva- Nonetheless, the government’s recreational use, which is something da and California, where marijuana view of the marijuana industry is the Department of Justice will be fur- is treated and regulated similar to al- something that remains on every ther looking into.” cohol and tobacco. stakeholders’ mind, Croft said, be at statement briey shook the Even the industries there, serving that in states where the industry is a marijuana industry and spooked in- recreational and medical users few years old or those where laws and vestors — particularly in Ohio, where alike, have seen nerves calmed. Ex- medical programs are in develop- money is quietly building up to sup- perts and businesspeople tend to ment. port growers, cultivators and proces- recycle euphemisms like “the train e sentiment and prevailing sors the instant each can apply for li- has left the station” and the “genie trend in the industry is that medical censes. is out of the lamp.” And while Mur- programs usually give way to recre- “I think if you ask if people are phy, like any attorney, reminds cli- ational policies a few years later be- worried, yes. But if you look at the re- ents of federal prohibition and the cause states grow fond of the tax rev- marks, everything (federal ocials) inherent risk associated with the enue and the stigma with marijuana say, although it’s ambiguous or in- business, he said there’s something fades as people get comfortable with consistent, it’s about adult use,” Mur- to that. the plant’s use in their states. phy emphasized. “ey’re being very e industry is thoroughly in- at progression is something in- careful to draw a distinction between grained in places like Colorado, vestors and entrepreneurs in Ohio recreational and medical. In Ohio, where recreational laws were passed are, naturally, hopeful for in the fu- it’s very encouraging that they’re in 2012. ose states are used to their ture. treating them dierently.” surging in tax revenues — $131 mil- “I think that’s the plan, though I’m So the key distinction there is the lion last year in Colorado — and not so positive Ohio has that plan,” administration’s apparent disinterest won’t want to give that up. Any feder- Fortune said. “Overall, I think that’s in medical marijuana. al actions undermining state laws what will happen in three to ve Yet, a wider, plausible concern is would result in immediate lawsuits years.”

Volume 38, Number 11 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 © 2017 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 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 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 | MARCH 13 - 19, 2017 | PAGE 5 New Loveman Steel owner sees potential By RACHEL ABBEY McCAFFERTY rmcca [email protected] @ramcca erty

e employees of Bedford Heights- based Loveman Steel Corp. had no idea what was going to happen to the business when it went into receiver- ship in the summer of 2015. Robert Campbell, who has been with the company for more than two decades, said it was tough, since no one knew if they’d have a job day-to- day. But some employees stayed, and more than a year later, the steel ser- vice center is under new ownership that’s investing time and money in the plant and in its culture. Donald A. Kruschke, president and CEO of Solon-based Plastics Ma- chinery Group, had never been in charge of a manufacturer before now. Plastics Machinery Group doesn’t make products of its own, and instead buys and sells equip- ment for its customers. It also does work in mergers and acquisitions, plant liquidations and appraisals. e company has grown in recent Bedford Heights-based Loveman Steel Corp. was purchased by Donald A. Kruschke, owner of Plastics Machinery Group, in 2016. (Contributed photo) years, and Kruschke was looking for additional warehouse space when he their attitude, especially as long as new approach, and closed on the man said, and he hopes to see sustain- been as high as $52 million. His main came across Loveman Steel. they had been in the receivership.” deal at the end of last year. He de- able growth that allows the company to goal is to get the company protable, One of the company’s services is ough he hadn’t planned on clined to disclose the purchase price. pay its employees and serve custom- but he’d really like to see the sales making large, fabricated metal parts owning a manufacturer, he saw a Loveman Steel had been a fami- ers’ needs going forward. back to that high level again. for a variety of industries, from con- possibility in Loveman Steel, and an ly-owned business, started in the Loveman had dropped to nine em- e companies are being run sep- struction to steelmaking. opportunity to apply the sales and 1930s, said Rob Loveman. Loveman, ployees by the time of the sale, Krus- arately in terms of nancials, but “I saw all these pictures of these marketing model he uses at Plastics now a sales executive with the compa- chke said. Employment is now up to there’s a lot of potential overlap be- neat things that were gigantic,” Krus- Machinery Group. Kruschke began ny, said he had been a non-voting 11, and he’s looking to add to that. tween Plastics Machinery Group and chke said. “So that intrigued me. I managing the company in the sum- owner before the sale. Plastics Machin- Kruschke said Loveman’s sales were what’s now being called Loveman went back. I met the people there. mer, contacting the company’s cus- ery Group’s involvement has changed around $17 million in 2015. At one Steel and Fab. And I really took a liking to them and tomers from the start to share their the culture of the organization, Love- time, he said he was told they had SEE STEEL, PAGE 6

7KHULJKWEDQNIRUEXVLQHVV

At First Commonwealth, we work to build long-term relationships with the businesses we serve so that we’re DEOHWRSURYLGHERWKSHUVRQDODQGSURIHVVLRQDOÀQDQFLDOVXSSRUWDQGJXLGDQFH7KDW·VZK\ZHSURPLVHWRDOZD\V

‡7DNHWKHWLPHWRJHWWRNQRZ\RXSHUVRQDOO\DQGSURIHVVLRQDOO\ ‡:RUNZLWK\RXWRXQGHUVWDQGORQJDQGVKRUWWHUPQHHGV ‡ 'LVFXVV\RXUJRDOVDQGGHYHORSDSODQWRKHOS\RXDFKLHYHWKHP ‡ % XLOGDQRQJRLQJUHODWLRQVKLSWKDWSURYLGHVWKHRSSRUWXQLW\IRUJUHDWHUVXFFHVV RYHUWLPHWKURXJKUHJXODUFRQYHUVDWLRQVWRHQVXUHÀQDQFLDOQHHGVDUHEHLQJPHW

,I\RX·UHORRNLQJIRUDFRPSOHWHÀQDQFLDOSDUWQHUIRU\RXUEXVLQHVVJLYHRXUWHDPDFDOOWRGD\DW

EQUAL HOUSING OPPORTUNITY fcbanking.com Member FDIC PAGE 6 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS AUCTION New OHTec leader aims to APRIL 4, 2017 BUSINESS, COMMERCIAL & DEVELOPMENT OPPORTUNITIES connect the tech community ATTENTION BUSINESS OWNERS, BUILDERS AND INVESTORS! By CHUCK SODER First o, he had corporate tech ex- GHOST ALLEY LANES & MEMORIES EVENT CENTER perience. After earning a bachelor’s 20,000 SF, fully restored 10-Lane Bowling Alley, Bar, Restaurant, [email protected] in business management from Case Party/Event Center and Museum. Parking for over 150 vehicles, @ChuckSoder Western Reserve University in 1998, 1.35+/- acre lot. Full-service catering kitchen. 10,000 square foot event center. New pins, electronic scoring systems, †at screen Brainard spent the next four years televisions and monitors and bowling systems. D5 and D6 liquor e guy tasked with leading OHTec working as a tech consultant helping license. Annual Net Operating Income is over $55,000! into a new era has an unusual ré- major corporations set up their IT ONSITE INSPECTION DATES & TIMES: Thursdays, March 16, 23 & 30 from 10:00 AM to 11:30 AM sumé — which is a big reason why he systems. got the job. But he can relate to entrepreneurs 456 COLLEGE ST., WADSWORTH, OH 44281 OFFERED WITH THE PUBLISHED RESERVE PRICE OF ONLY: $150,000 On Oct. 31, Dean Brainard became as well. He and his wife Susan own ALSO OFFERED IN THIS AUCTION the tech-focused economic develop- Blind Perch, a Vermilion restaurant ment group’s executive director, a that serves Lake Erie walleye and +/ 12.33 ACRES OF PRIME +/ 116 ACRES IN 4 UNIT MIXED USE COMMERCIAL LAND WITH PORTAGE COUNTY, JUST INCOME PRODUCING position that had been empty since perch, as well as other locally grown FREESTANDING SOUTH OF GEAUGA & BUILDING. CURRENTLY Brad Nellis stepped down in Febru- food. He also has worked as an inde- BANK BUILDING WEST OF TRUMBULL CO. 50% OCCUPIED  $1,075/MONTH ary 2016. pendent consultant. INTERSECTION OF 25 MUMFORD ROAD Since joining OHTec, Brainard — He has experience in the nonprot NORTHFIELD & ROCKSIDE RD HIRAM TOWNSHIP 337 E. GARFIELD ROAD who has experience designing com- world, too. Brainard, who graduated BEDFORD, OH 44146 GARRETTSVILLE, OH 44281 AURORA, OH 44202 puter networks, building relation- from Midview High School in Graf- OFFERED WITH THE PUBLISHED RESERVE PRICE OF ONLY: OFFERED WITH THE PUBLISHED RESERVE PRICE OF ONLY: OFFERED WITH THE PUBLISHED RESERVE PRICE OF ONLY: ships with politicians and running a ton, has worked for both the Ohio $200,400 $370,000 $75,000 restaurant — has been working to Aerospace Institute and the CWRU implement a new vision for the orga- School of Medicine, helping them FOR ADDITIONAL INFORMATION ON THIS nization. “Historically, OHTec raise funding and build relationships AUCTION OR UPCOMING AUCTIONS, CALL: 216.861.7200 OHTec, for one, aims to put more in Congress. emphasis on helping members of the has been a group of And to top it all o, he’s a pilot, his local tech community make connec- smaller companies. plane of choice being the Beechcraft tions with their peers and anyone Bonanza. He enjoys testing out all else who can help them solve specic What we’d really like kinds of iPhone and iPad apps to problems, according to Brainard and plan his ights, monitor the weather Steve Millard, executive director of to focus on is and otherwise ensure that he has a the Council of Smaller Enterprises. safe trip. OHTec is run by COSE, a member- getting more middle He also has an anity for Power- “Risk management ship organization for small business- market and larger Point presentations, pointing to a is at the forefront of es throughout the region. slide he created to quickly show o Granted, OHTec isn’t making an companies OHTec’s top three goals: Connecting every organization’s enormous departure from the past: members with each other, forming strategy today, e group has been organizing net- involved.” partnerships with other tech organi- including ours. working events since it was founded zations doing work in areas like in 1998 as the Northeast Ohio Soft- — Dean Brainard, OHTec executive workforce development and raising That’s why ware Association. It’ll still organize director the visibility of the local tech com- Armada is our its best-known events: TechWeek munity. and the CIO Symposium. And it’ll Today, there are 550 companies trusted advisor.” still work to address tech workforce in the room, they’d probably keep who are considered part of OHTec, challenges and raise the prole of the themselves busy for an hour or two which includes all tech companies RANDY MYEROFF region’s information technology in- talking about the things they’re work- that are part of COSE and the Greater CEO, Cohen & Company dustry. ing on,” Millard said. Cleveland Partnership. at’s far be- But in the future, OHTec aims to COSE, which is part of the Greater low the 930 members it had seven organize more events like its CEO Cleveland Partnership, wasn’t sure years ago. e Aordable Care Act Roundtable. at small, invita- exactly what direction OHTec might helped cause that decline: e health LEARN MORE J www.armadarisk.us/Cohen tion-only gathering brings together go after Nellis stepped down. So last reform law gave individuals and CEOs of local software companies summer it organized a retreat for the small businesses more ways to buy and gives them a chance to hash out tech executives and entrepreneurs health insurance, which reduced de- their problems with peers who may who make up OHTec’s advisory mand for COSE’s insurance program. have faced similar challenges. board. During those conversations, a For years, that program had been the Similar gatherings could be orga- theme emerged: e board members organization’s most popular benet, We Protect. You Grow. nized for chief information ocers, wanted OHTec to focus primarily on because it allowed small businesses chief information security ocers or its role as a convener, Millard said. to buy insurance through a larger www.armadarisk.us X 216-350-5050 even tech-focused human resources And that’s when COSE started to group. directors, who face much dierent get the sense of the type of person Even so, Brainard sees opportunity hiring challenges than their peers in who should be in charge of OHTec. for OHTec to appeal to a broader other industries, Millard said. Events ey wanted someone who could range of companies. like those could help OHTec better both build relationships and under- “Historically, OHTec has been a serve the small members it has stand the needs of OHTec members, group of smaller companies,” Brain- worked with for years and the larger large and small, Millard said. ard said. “What we’d really like to fo- ones it has been working to recruit. Brainard’s eclectic background cus on is getting more middle market “Just put cocktails and appetizers made him a good t, Millard added. and larger companies involved.”

2016. e company relies on custom- ing to quotes for products like plat- STEEL er relationships. forms. CONTINUED FROM PAGE 5 “Everything I preach to these guys “And I wasn’t even expecting that,” is relationship and quality of the Kruschke said. Plastics Machinery Group grew equipment and quality of the deal,” Kruschke said he also plans to run out of Stopol, which was started by Kruschke said. And he wants to bring Loveman Steel more eciently, Kruschke, his brother and his father that business model to Loveman which will allow Plastics Machinery in the ’90s. e recession was tough Steel. Plastics Machinery Group is in Group to do some of the additional on Stopol, though, and in 2009, Krus- “constant communication” with its warehousing it needed at that loca- chke ended up buying two of the customers, Kruschke said. e com- tion. And he’s upgrading the building company’s four divisions from his pany also makes strong use of data, from top to bottom. brother: thermoforming and keeping track of its plastics custom- Long-term employee Campbell, blow-molding. e other divisions ers’ lines of business, their preferred who Kruschke made Loveman’s chief were sold, and Kruschke decided to brands of machinery, the type of ma- operating ocer, said the upgrades rename his portion. Since then, Plas- terial they run and more. at means to the plant — new lighting, new tics Machinery Group has added oth- the company has a “nger on the paint, soon-to-be-new oors — er equipment segments, like injec- heartbeat, on the pulse” of its cus- make for a better environment for the tion molding. tomers, Kruschke said, and knows employees. Today, Plastics Machinery Group just when its customers will need e company also is investing in a has 13 employees, plus one in En- something. He thinks that model can completely renovated oce on the gland (which technically counts as a apply to Loveman Steel, too. Loveman site, where both Loveman separate business). Kruschke Plus, he already has seen new op- and Plastic Machinery Group will be wouldn’t get specic on sales for portunities arise as he has brought located. In total, Kruschke said he’s Plastics Machinery Group, but he the plastics-related customers investing more than $1 million in the said they were above $20 million in through Loveman Steel’s plant, lead- plant and oce renovations. CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 7 Clinic study focuses on non-clinical leadership By LYDIA COUTRE that,” Porter said. the importance of teamwork, Stoller ic is to act as a unit, and that’s not Leadership development is not a Porter worked with co-authors Dr. built team-building into the leader- conned to physicians, I can assure new concept, Stoller notes. It has [email protected] James K. Stoller, chairman of the edu- ship development course he began you,” Stoller said. been an important activity in sectors @LydiaCoutre cation institute at the Cleveland Clin- working on about 15 years ago: Lead- As a physician-led organization, outside of health care for decades. In ic, and Scott J. Allen, associate profes- ing in Health Care. he said, the Clinic needs to have a his view, health care has been “rela- While a growing body of research sor of management at John Carroll e case study, which was submit- pipeline of physicians who can take tively slow” in the uptake of these supports the importance of team- University’s Boler School of Business. ted to the Academy of Management on leadership roles. tactics, but the Clinic is among the based care for clinical outcomes, less Many studies have explored the conference, looked at this course with In the 1990s, physicians developed head of the class, he said. is known about the e ect of physi- importance of this teamwork and a specic focus on its team training. a program called the Executive Pro- Allen agreed that the Clinic is a cian-led teams in administration, ac- collaboration in a clinical context. Leadership development is espe- gram in Practice Management at the leader in the industry for physician cording to a case study examining “e kind of outcomes that we all cially important in organizations like Clinic. Prior to that, physicians were leadership training. leadership training at the Cleveland aspire to for our patients’ wellbeing the Clinic where physicians take on encouraged to attend outside or uni- “e Clinic’s serious about tapping Clinic. are directly proportional to how well leadership roles, Allen said. Often, versity-based programming to learn these groups of very smart people to Physicians may clearly understand teams of not just doctors, but doc- organizations promote experts or the business of health care. In the ear- think in new ways,” he said. their role within an operating room, tors, nurses, allied health providers good workers into a leadership role, ly 2000s, Leading in Health Care took Although the small qualitative sam- for example, where they clearly are in of various sorts — how well they all but don’t necessarily train them for shape. It built upon its predecessor, ple means that the authors can’t infer charge, said Tracy Porter, assistant interact,” Stoller said. that job. Leading a department and which focused on business concepts general applications to other organi- professor in Cleveland State Univer- e study instead focused on the conducting surgery are “two totally rather than leadership development. zations, the hope is that the report will sity’s Monte Ahuja College of Busi- importance of clinicians working to- di erent worlds,” he said. And so teams and leadership be- spur further studies to examine the ness and an author of the study. gether in administrative roles or Stoller said the importance of came a core part of the program, full impact of team development “If it’s interdisciplinary or some- non-clinical spaces. e Cleveland teams in non-clinical spaces is very which ran for 13 years and has since among physician leaders. thing outside of that medical scope, a Clinic has had leadership training in much recognized in the Clinic. been rolled into other leadership de- “Other sectors have been doing this lot of them have a hard time with various forms for years. Recognizing “e mantra of the Cleveland Clin- velopment programs. for a long time,” Stoller said. Indie bookstores want to kick corporate chains o campus BLOOMBERG Robert Walton, CEO of NACS. prots, Walton said. But the same vate-sector partners. nies. Schools can also outsource store A spokeswoman for Barnes & No- technology that upended the book Walton’s solution is a two-pronged management to the NACS consortium, e ranks of independent book- ble Education, which operates 770 business in the past may help an in- plan to take stores back from the cor- much in the way that they would lease stores in the United States have campus stores and spun out of the dependent bookstore compete with porate chains. Schools that want to op- a store to a corporate chain. grown steadily over the past decade, big-box bookseller in 2015, declined its larger rivals. Better software has erate their own stores can pay for a la Attracting members to the new as small shop owners regained their to comment. Follett, which manages also made running a retail business carte services, including software, store consortium will be a tall order. About footing in a publishing industry 1,200 campus stores, didn't respond easier, Walton said, decreasing the design, wholesale pricing on text- 90 university-owned stores turn oper- transformed by the rise (and fall) of to an email seeking comment. need for universities to rely on pri- books, and deals with e-book compa- ations over to big chains every year. the big-box stores and the emer- Walton has argued that the cam- gence of Amazon. Now the indie pus bookstore has failed to adapt to movement is heading back to school. the modern marketplace. e Oberlin-based National Asso- In the 1980s, when colleges began NOMINATIONS ciation of College Stores (NACS) on to outsource store management, March 4 announced the launch of a leasing out a campus bookstore in re- consortium of university-owned turn for a share of prots allowed NOW OPEN stores during an industry conference. university administrators to elimi- 2017 e goal is to push the two corporate nate day-to-day headaches, like hir- giants in college bookstores, Follett ing sta and managing inventory. Corp. and Barnes & Noble Education e ability of these corporate stores Inc., o campus. e group would to negotiate better deals with pub- TWENTY IN THEIR 20s pool buying power and management lishers and other vendors often expertise in a bid to boost prots and meant more prots, and leasing reve- Crain’s will single out 20 up-and-coming professionals who lower costs for students. nue gave schools extra money to haven’t turned 30 yet, but are already making a mark on “Every ve years, $1 billion in prot spend on core functions. Northeast Ohio. that used to stay in higher education is Now the corporations take “too NOMINATION DEADLINE: MARCH 13 - LAST CALL! now going to private companies,” said much money out of the system” in

ARCHER AWARDS

CLEVELAND BUSINESS A tribute to Northeast Ohio’s leading human resources professionals who are building companies with the best 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 | www.crainscleveland.com | @CrainsCleveland people, talent, development and culture. Publisher/editor Elizabeth McIntyre * * * NOMINATION DEADLINE: APRIL 1 Managing editor Scott Suttell Events manager Ashley Ramsey Sections editor Tim Magaw Events coordinator Megan Lemke Creative director David Kordalski Integrated Web editor Damon Sims marketing manager Michelle Sustar Associate editor/Akron Sue Walton Managing editor Assistant editor Kevin Kleps custom/special projects Amy Ann Stoessel Senior reporter Stan Bullard Advertising director Nicole Mastrangelo Real estate/ FORTY UNDER 40 construction Senior account exec. Dawn Donegan Reporters Jay Miller, Account executives Lindsie Bowman A tribute to the next generation of rising stars who have Government John Banks taken a leading role in our business community. Dan Shingler Laura Kulber Mintz Energy/steel/auto NOMINATION DEADLINE: JUNE 27 O ce coordinator Denise Donaldson Rachel McCa erty Manufacturing/ * * * energy Digital strategy/ Jeremy Nobile, audience development Finance director Nancy Hanus Lydia Coutré, Health care Production director Craig L. Mackey Data editor Chuck Soder Billing Peter Iseppi C-SUITE GALA - NEW FOR 2017! Cartoonist Rich Williams Credit Rod Warmsby Northeast Ohio’s top executives are honored for their CRAIN COMMUNICATIONS INC. contributions, community commitments and outstanding

Chairman Keith E. Crain VP of production professional performances. President Rance Crain and manufacturing Dave Kamis NOMINATION DEADLINE: JULY 8 Treasurer Mary Kay Crain * * * CIO Anthony DiPonio G.D. Crain Jr., Founder (1885-1973) CFO Bob Recchia Mrs. G.D. Crain Jr., Chairman (1911-1996) Group publisher Mary Kramer * * * Senior Executive VP William A. Morrow Reprints: 212-210-0750 Exec. VP/director of Krista Bora NOMINATE TODAY: strategic operations Chris Crain [email protected] Exec. VP/director of Customer service corporate operations KC Crain and subscriptions 877-824-9373 CRAINSCLEVELAND.COM/NOMINATIONS PAGE 8 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS Opinion

From the Editor Stand tall, dream big She’s all of 8 years old, I’d guess. Her hands are planted rmly on her hips, high-top heels dug in and chin pointed upward as the wind whips back her hair and skirt. On the receiving end of that de ant stare? A 7,100-pound bull charging directly at this little wisp of can-do spirit. “I got this,” her expression says. “Bring it.” is half-pint heroine happens to be a bronze statue temporarily installed last week in front of the iconic Wall Street bull in downtown Manhattan. State Street Global Advisors, a $2.5 trillion asset manager, com- missioned the piece to bring attention to the lack of women in corporate boardrooms. “A key contributor to eective indepen- dent board leadership is diversity of thought, Elizabeth which requires directors with dierent skills, McIntyre backgrounds and expertise,” State Street president and CEO Ron O’Hanley said in a news release. “Today, we are calling on companies to take con- crete steps to increase gender diversity on their boards and have issued clear guidance to help them begin to take action.” About a quarter of companies that make up the Russell 3000 index have no female representation, according to State Street. e inscription at the base of “e Fearless Girl” statue reads: Editorial “Know the power of women in leadership. She makes a dierence.” Seeing news coverage last week of the statue’s installation on the eve of International Women’s Day, I was reminded of a re- cent event involving female entrepreneurs that I attended at Laurel School in Shaker Heights. e young women at Laurel know the power of female lead- Akronites wanted ership because it’s front and center in the school’s mission to inspire girls to ful ll their promise and better the world. To be Akron mayor Dan Horrigan is bold. Perhaps not in the same once-forgotten neighborhoods. Just look to Tremont or Ohio living, breathing “Fearless Girls.” fashion as his re-breathing predecessor, Don Plusquellic — City, for example. It’s what prompted the school to launch its Capstone Experi- and thankfully so. But only a year into his term, Horrigan has e sheen of the suburbs doesn’t quite have the appeal it ence program last year, which gives students the chance to ex- already put forth how he’d like his legacy to be perceived. once did, and Akron — and particularly Horrigan — are right to plore real-world issues while further developing their leadership And it won’t be easy. seize on that opportunity. It’s time to get to work. skills in one of four areas: civic engagement, entrepreneurship, “I want to be the mayor that grows Akron’s population again,” global studies and STEAM (a twist on STEM, “science, technolo- Horrigan said last month when he outlined his vision for re- gy, engineering and mathematics”, that adds “arts” to the mix.) versing the population decline that has hamstrung many Mid- Inspired by a documentary called “Dream, Girl,” which western cities amid the seismic shift in the manufacturing in- None of your biz showcases female entrepreneurs, students in the school’s en- dustry. In Akron, the drop has been especially steep, as the city Strengthening the bonds between the business community trepreneurship Capstone Experience hosted a panel discussion has gone from more than 290,000 residents in the early 1960s to and our public schools is something we whole heartedly sup- last month featuring local female business trailblazers. fewer than 200,000 today. port, but an approach simmering in the Ohio Legislature is ter- Panelists Heather Ettinger, managing partner at Fairport Asset Growing the population, of course, isn’t necessarily a bold ribly misguided. Management; Stephanie Silverman, publisher and owner of Your idea, but Horrigan staking his legacy on that very dicult task In particular, Gov. John Kasich’s administration has proposed Teen Media; Nichelle McCall, CEO of Bold Startups; and Laura is. At the core of that plan is revitalizing Akron’s poor housing a requirement that teachers take part in some sort of “on-site Bennett, COO and co-founder of Embrace Pet Insurance shared stock — and not just in the Rubber City’s downtown area but work experience” with a business or chamber of commerce be- their experiences in creating and running their own businesses. many of its neighborhoods as well. For the last several years, fore renewing their teaching licenses. More facetime with the e messages shared that evening were inspiring: Horrigan said the city has been tearing down more houses than local business community is something worth exploring, but “Persistence is one of the most valuable things.” it builds. this proposal simply adds another unnecessary layer in the al- “Shatter stereotypes whenever you can.” Akron’s downtown revitalization seems to be going smooth- ready-cumbersome teacher certi cation process. “Who you are at your core is where you will nd the most ly. As we reported recently, residential demand is far outpacing Instead, the state should be working to encourage partnerships meaning and relevance in your life.” the supply downtown, and developers like Tony Troppe are like many of those already taking place in Cleveland. More impor- “Don’t think of choices you make now as your destiny … just seizing on the opportunity. at said, a city’s success should not tantly, the focus should be on getting more students on-site work get started and you’ll nd the place you ought to be.” only be pinned on that of its downtown. experience, not the teachers. We should be opening the eyes of our “Surround yourself with other people who’ve been down that e citywide approach that Horrigan’s administration has young people about what is possible if they work hard. road.” put forth to reinvigorate the city’s housing stock is a sound one. Take the Lincoln-West School of Science & Health that com- When I saw “e Fearless Girl,” she reminded me of those Some of the immediate recommendations include developing bines a traditional high school curriculum with hands-on, in- students at Laurel and those panelists who have been down a citywide property tax abatement program to spur develop- teractive learning with professionals at MetroHealth. Or the that road, circling back to make sure more are coming, and in ment; developing neighborhood-based plans to create nodes MC2 STEM High School where classes are held at locations like greater numbers. of activity and increased walkability; increasing the city’s use of the Great Lakes Science Center in the ninth grade or General I thought of all those young women, stronger than a bronze the Summit County Land Bank to acquire property; and stream- Electric’s Nela Park campus. On the private school front, Saint casting, lled with con dence, inspired by mentors, armed lining zoning and permitting processes. Martin de Porres High School has deep ties with organizations with education. Despite the championship glow and convention high, Cleve- like Sherwin-Williams Co., Jones Day and the Cleveland Clinic. And I thought of the symbolism of the statue’s placement on land, of course, still has its blemishes, but one thing it’s proven At the same time, especially if the state isn’t oering any help, Wall Street, of the bull these young women are likely to face as is that there is a demand for urban living, particularly among we as a business community should develop more opportuni- they make their way to the top. And I came away thinking I’d the younger subsets. And not just downtown, but in many of its ties for our region’s students within our walls. put my money on those young woman any day.

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 | MARCH 13 - 19, 2017 | PAGE 9

Transforming Environmental Liabilities into Thriving Assets

Personal View Web Talk Re: Payday lending Don’t dim a good problems

Short-term lending satisfies an After unfortunate but very real need. It source of city’s used to be provided by small Before credit unions or even less-formal organizations, centered around economic power churches, fraternal organizations or unions, where social pressure By JOE ROMAN 330.854.5300 got the loans repaid. Now that www.bjaam.com support is gone, and the Renewable energy is an appropriately much-discussed topic in successor lenders charge usurious various circles today. Often, the sources of this amazing kind of en- Email us at rates because of their high ergy are harder to realize than they are to theorize. [email protected] percentage of bad loans. If you One de nition explains it this way: Renewable energy comes for more information want to eliminate the realistic but from a source that is not depleted when used, such as wind or solar high rates, you need to invent a power. If that is indeed the case, then Cleveland has realized and better way of filling the need. enjoyed a successful and powerful form of renewable economic — Robert Salmon energy for 23 years through Quicken Loans Arena (e Q) and the broader Gateway project. They either have to create or e Q is a steady and dependable economic driver that enhanc- incentivize better credit options, es our scal resources and improves our business environment. or they have to help raise wages. It’s a fact that e Q is an economic powerhouse that bene ts People aren’t making enough everybody in Cuyahoga County — including those who never at- income if they need payday tended any of the more than 200 annual events held at the facility. advances. There are some e venue creates a wide array of positive economic conditions. fundamental issues in play here. Last year alone, e Q was responsible for producing $44 million Payday loans are a cosmetic fix. in taxes. And since it opened in 1994, it has generated a total of — I Byrne $500 million in taxes. Much of those revenues go directly to Cuyahoga County and the city of Cleveland to provide public ser- Re: FirstEnergy’s vices for all of us who live, work and play in Greater Cleveland. challenges e proposed $140 million upgrade of the publicly owned Q would come from the Cavaliers, Cuyahoga County, the city of Cleveland and What is it about nuclear power Destination Cleveland’s public funds. It requires no new taxes. that causes people (including Utilizing admissions taxes and bed taxes for the public portion Crain's) to all the sudden lose their of this project is — to a signi cant degree — a renewable source of ability to think, objectively and funding. If e Q wasn’t here, those sources of revenue simply rationally? The fifth paragraph would not exist in the same capacity. Many of the patrons who at- from the bottom of your March 6 tend events at e Q do not live in Cuyahoga County, yet they are editorial, "Power play," is a beauty. paying taxes here. Due to provisions in Ohio law, it’s very dicult Subsidies to non-polluting nuclear to gain tax support from residents of neighboring counties who en- are not serving Ohio residents, joy e Q except through these kinds of consumption taxes. whereas much larger subsidies Failing to properly invest in e Q would result in a net decrease and/or outright mandates for of these taxes and would negatively impact the other institutions (also non-polluting) renewables and businesses that thrive based on all of the events that are held are? Since when was it a matter of at this well-utilized venue. "old" generation vs. "new?" I ere are many businesses and jobs that depend on e Q’s thought it was about clean vs. source of economic power: hotels, restaurants, taxi and valet com- dirty, and how all non-polluting panies, caterers, construction workers and much more. sources get appropriate credit for e Q and the nearby ballpark were two of the catalysts that trig- their benefit, and get to compete gered downtown Cleveland’s ongoing multibillion-dollar renais- on a level playing field. — jimhopf sance. at stunning revitalization has attracted private investment and resulted in job creation. e resulting tax revenues and jobs The generation business in Ohio is have provided economic juice for our county’s neighborhoods. very much unregulated and not a Owning an arena, as the public does, is a competitive business. monopoly. The problem isn’t with Staying current and ahead of the competition — like any business FirstEnergy’s management. It is — is vital. When the RNC was looking for a location for its 2016 with the competitive system in convention, it had originally considered Cincinnati. But that good place to bid for and secure energy city was ruled out because its arena was deemed to be inadequate. generation. There is zero e average life of any NBA arena is 22 years. e Q, which opened consideration given to the in 1994, is one of the oldest arenas in the NBA. Today, it would cost importance of fuel diversity. The $500 million or more to build a new arena. massive growth of the natural gas is arrangement with e Q will also extend the lease with the industry in the U.S. making the Cavaliers through 2034, thus making it one of the longest tenures of fuel very cheap, combined with any professional sports team in the same facility. By investing $70 the lower complexity of running a million now — with another $70 million coming from the Cavaliers gas plant, has bottomed out (who, by the way, have already spent more than $400 million on op- prices in the market making coal erating, maintaining and improving e Q) — we will make the are- and nuclear uncompetitive. If na more fan-friendly and competitive. We can prolong the build- these plants shut down and we ing’s life by many years, thus negating the need for a new arena. are relying solely on gas and An old but reliable business maxim holds that “You have to renewables, then gas will truly be spend money to make money.” a monopoly and customers’ bills at indeed is the case here. We’re already “making money” for our have a much higher risk of going entire community from e Q in terms of job creation, tax generation and up in the long run. ... Also, have so much more. By investing in this unique public asset, we will assure that you looked at the short-term bond our entire community will continue to realize these economic bene ts. yields for FirstEnergy’s e Q helps to light Cleveland up, literally and guratively. It boosts competitive segment? There are our city’s marketability and image, and it feeds our economic “energy very clear warnings there that this grid” with jobs, tax revenues and so much more. We need to approve part of their business will very this proposal for the future of Cleveland and all of Cuyahoga County. likely go bankrupt, so that is most definitely not a blu. — G Roman is president and CEO of the Greater Cleveland Partnership, the region’s metro chamber of commerce. REGISTER NOW!

FAMILY CRAIN’S FAMILY BUSINESS BUSINESS FORUM FORUM TITLE SPONSOR MAY 3, 2017 Cleveland Metroparks Zoo

MAJOR SPONSORS

JUST ADDED! Keynote speaker: Jane Grote Abell, chairwoman of the board, founding family member, Donatos Pizza.

SUPPORTING SPONSORS Keep checking www.crainscleveland.com/FamilyBiz for more details and to register!

Sponsorship Opportunities: Nicole Mastrangelo at 216-771-5158 or [email protected] Event/Registration Questions: Megan Lemke at 216-771-5182 or [email protected]

CRAIN CONTENT STUDIO Cleveland #CrainsFamBiz CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 11 Focus SMALL BUSINESS CROSS-COUNTRY JOURNEY - Page 12 | TAX TIPS - Page 14 | ADVISER - Page 15

Striking a pose is what KP does best

KP Photo’s sunlight-soaked front studio — part of a 100-year-old, 18,000-square-foot space — o ers perfect lighting for commercial shoots. (Contributed photos) Thirty years later, business is brighter than ever at Kalman & Pabst Photo Group’s sprawling studio

By MARK OPREA set stylist Sharon Hynes reviews the White Lily Yeast Rolls they’ve shot that [email protected] morning. In one of three kitchens close by sits the actual prop, half-gone. It was James Popovic’s 53rd birth- “Food is denitely not the easiest day at Kalman & Pabst, and all 14 thing to photograph,” said Westmey- sta members sat around their cop- er, nodding to a photoshopped im- per long table dead center of the age of the now 13-by-9 pan. “Every warehouse. Most if not everyone was subject has its own challenge. Let- giddy, ready to sing. Others had tuce wilts. And this?” She nodded to a heads turned. Someone was missing. layered cream pastry inches from But it had been a smooth ursday, two DSLRs with macro lenses. “Not so far, at the two-story studio on East your regular cupcake.” 40th and Perkins, in Midtown’s pho- Upstairs, on the gallery oor, de- tography mecca. Blazer-wearing reps signers and CGI artists touched-up from Smuckers and General Electric, digital pizzas and onion rings in a two weathered KP clients, have wholly dark oce space, as an on-site stopped in to oversee eventual print culinary intern cut pork tenderloins in ads, chat with food stylists reorganizing a four-cooler kitchen below their feet. faux kitchen sets, talk peanut butter A voice over the PA called for lunch, spread recipes with in-house bakers. and everyone, including shop-Terrier In the front, a photographer in a pana- Nina, convened for plates of baked ma hat named Clarissa Westmeyer A sample of the studio’s work for salmon and sliced grapefruit. KP Photo’s studio also boasts a commercial kitchen. prepped the lens on her Canon 5DS, as Nestlé Toll House. SEE KP, PAGE 16 PAGE 12 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS SmartShape’s founder just felt like walking

By TIMOTHY MAGAW ried about walking through the des- ert where temperatures stretched [email protected] well above 100 degrees. Using some @timmagaw patches and their corresponding smartphone app — developed by a Mike Maczuzak’s reason for walk- Cleveland-area company, TempTraq ing across the country was quite — Maczuzak was able to monitor his simple. ere wasn’t a deeper rea- body heat. Also, ever the engineer son like nding religion, rediscover- and problem solver, he fashioned ing himself or weathering a mid-life ule Chariot stroller to carry up to crisis. e now 54-year-old just felt six gallons of water to keep him hy- like walking, and the condence he drated through the desert. He donat- had in his sta at SmartShape De- Mike Maczuzak started his journey ed the stroller to the St. John’s Health sign made it possible for him to step across the country at the shore at Center Child and Family Develop- away, at least physically, for a few Coney Island. (Contributed photos) ment Center in Santa Monica at the months. end of his journey. “ ere’s a common desire to move was perfect for me.” “I was seriously worried about the your business forward so that it is Along the way, he was snowed in desert,” Maczuzak said. “It was some- self-sustaining and doesn’t depend while climbing over the Continental thing that intimidated me. I ran into a on any one person,” said Maczuzak, Divide, camped under the stars in re- woman walking through Utah who an industrial designer whose compa- mote areas of Colorado and Utah and asked me where I was going. I told ny focuses on product development recharged in nearly 100 hotels and her from Las Vegas to Los Angeles, and innovation for clients. “My per- motels of varying quality. and she told me I would die. I was sonal life and business are so inter- Some days, Maczuzak walked as worried about overheating, so wear- Top: Maczuzak crossed into twined, but I realized that with the many as 75 miles, going through ing those patches really helped me Arizona through the Mojave team I have now, I could actually do four pairs of New Balance Fresh o u t .” Desert after walking all night this.” Foam 1080s (at about 900 miles per He added, “Most of my fear is un- from St. George, Utah. Maczuzak’s reasoning sounds a lit- pair) even wearing holes into the warranted. I can’t let that deter me tle like Forrest Gump when he de- bottom. from doing things.” Middle: Maczuzak reports count- scribes why he took the four-month All the while, during the journey Along the way, he met several less spectacular views like this journey on foot from Coney Island, that touched 15 states March 17 characters — some even oered the near Escalante, Utah. He walked through the industrial Midwest, the through July 20 of last year, Maczuzak road-weary businessman cash, as- for four hours to reach this view. Appalachians, the Rocky Mountains, continued to fulll his role as Smart- suming he was homeless. the Mojave Desert and ultimately the Shape’s top executive and stayed in As he was nearing the Mississippi Far right: He crossed the Mason Santa Monica Pier where he dove contact with his colleagues and fami- River in Illinois, he saw a man run- Dixon line twice during his into the Pacic Ocean 25-plus ly. ning the opposite direction. It was four-month journey across the pounds lighter than when he started He even donned an arsenal of Jason Romero, a legally blind endur- United States. his journey. wearable technology — tness track- ance runner. His mother was follow- “I tend to like to walk more than ers, smart watches, health monitors ing him in a van with food and water most people,” Maczuzak said quite — some of which his company was and drove him to hotels at night. matter-of-factly. “I like to walk working on for clients. e pair kept in touch, and as around and think, so I gured this Of note, he was particularly wor- Maczuzak was walking through Den- SALT• SALT • SALT •Water Softener • Industrial • Food • Ice Melt • Sea Salt Corporate Call For Pricing!! Training and Minimum Delivery:1Pallet Performance Solutions

Corporate College® provides professional training and development customized for your organization.

ORGANIZATIONAL DEVELOPMENT TRAINING SOLUTIONS •Business Communication •Management/Leadership •Sales •Change Management •Professional Services •Supervisor Development •Customer/Patient Experience and Consulting •Teambuilding

corporatecollege.com 1-800-547-1538 216-987-0234 Salt Distributors Since 1966 17-0035 CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 13 SMALL BUSINESS

ver, where Romero lives, he was treated to a pasta dinner. “I looked like a homeless guy, but there were some people who were curious about me,” Maczuzak said. “I admired the people who were curi- ous about my trip. I wanted to be like those people. I wanted to learn more about people.” In many ways, Maczuzak said the trip made him a better communica- tor because it forced him to schedule times to talk with his colleagues. Even when you’re in the o ce, he said, it’s easy to get distracted and not set aside time to talk with those you work alongside. Mark Cartellone, SmartShape’s di- Top: He met rector of engineering, was one of those. plenty along the “He’s a very driven guy,” Carterl- way, including lone said about Maczuzak. “ere Jason Romero. were times when I would talk to him while he was still walking, and it’d be Middle: He late at night. He pretty much lives his encountered work in some ways.” some snow in As a bachelor, Maczuzak didn’t Pennsylvania. have any family holding him back from taking the trip. His mother, of Bottom: He course, was terried, and she didn’t completed his learn of the journey until a few weeks trek at the Santa before he left. Monica Pier. Maczuzak, meanwhile, will be sharing details of his trip during a March 14 presentation at the South by Southwest in Austin. One night during his trip, he had a dream he would continue his jour- ney up through Alaska. At the time, he thought his cross-country journey satised his itch. “When I nished, I felt like I could do anything,” he said. But later this month, Maczuzak is packing his bags for another walk — a much less ambitious one, though, a least by his standards. He plans to y into Tokyo, and walk across Japan through Kyoto — a journey that will take about a week through the peak of cherry blossom season.

Are you an individual with $10 million or more seeking advice? Advice and insight across generations

5PEBZ
CBDLFE
CZ
UIF
FYQBOTJWF
HMPCBM
SFTPVSDFT
PG
6#4
BOE
JUT
ZFBS
USBEJUJPO
PG
TFSWJOH
TPNF
PG
UIF
XPSMEÁT
XFBMUIJFTU
GBNJMJFT
PVS
UFBN
IBT
OFWFS
CFFO
CFUUFS
QPTJUJPOFE
UP
TFSWF
PVS
BGGMVFOU
DMJFOUT
BOE
UIFJS
GBNJMJFT
'SPN
DPNQMFY
NVMUJHFOFSBUJPOBM
QMBOOJOH
UP
XFBMUI
QSFTFSWBUJPO
TUSBUFHJFT
BOE
USBOTGFS
XF
BSF
ZPVS
USVTUFE
TPVSDF
PG
GJOBODJBM
TUFXBSETIJQ
BOE
BEWJDF

Cleveland Wealth Management Team

William G. Murphy, CIMA® Owen C. McBride, CFP®, CLU 4FOJPS
7JDF
1SFTJEFOU¾
4FOJPS
7JDF
1SFTJEFOU¾ 8FBMUI
.BOBHFNFOU
8FBMUI
.BOBHFNFOU ! 1SJWBUF
8FBMUI
"EWJTPS
1SJWBUF
8FBMUI
"EWJTPS LET’S GO CRAZY ALL OF YOUR FAVORITE ROCKSINO PRIZES ROLLED UP INTO ONE MONTH! Chad Arthur Hartup, UBS Financial Services Inc. SWIPE & WIN 3/25 9 11 CFP®, CRPC®, CLU 
4VQFSJPS
"WF
&BTU
UI
'M every Thursday, Friday & Saturday through from AM - PM to win GUARANTEED FREE PLAY! 4FOJPS
8FBMUI
$MFWFMBOE
0)
 4USBUFHZ
"TTPDJBUF  $100,000 GOLDEN TICKET PRIZE DRAWINGS at 3PM and 6PM every Sunday to win loads of Free Play and a 2017 HONDA ACCORD! Receive a FREE Golden Ticket EVERY DAY from February 27th through March 26th at 5pm! ubs.com/team/cwmt DOUBLE POINT PALOOZA! Your Rock Star Rewards Points are worth double the value at the Rock Shop and every restaurant all day, every day during March! $FSUJŖFE
'JOBODJBM
1MBOOFS
#PBSE
PG
4UBOEBSET
*OD
PXOT
UIF
DFSUJŖDBUJPO
NBSLT
$'1® and CERTIFIED FINANCIAL PLANNERÍ
JO
UIF
64
$*."®
JT
B
SFHJTUFSFE
DFSUJGJDBUJPO
NBSL
PG
UIF
*OWFTUNFOU
With so much to win, why play anywhere else! .BOBHFNFOU
$POTVMUBOUT
"TTPDJBUJPO®
JO
UIF
6OJUFE
4UBUFT
PG
"NFSJDB
BOE
XPSMEXJEF
$IBSUFSFE
3FUJSFNFOU
1MBOOJOH
$PVOTFMPS4.
BOE
$31$®
BSF
SFHJTUFSFE
TFSWJDF
NBSLT
PG
UIF
$PMMFHF
GPS
'JOBODJBM
1MBOOJOH®
"T
B
GJSN
QSPWJEJOH
XFBMUI
NBOBHFNFOU
TFSWJDFT
UP
DMJFOUT
XF
VEGAS EXPERIENCE. OHIO ADDRESS. HRRNP.COM • 330.908.7625 PGGFS
CPUI
JOWFTUNFOU
BEWJTPSZ
BOE
CSPLFSBHF
TFSWJDFT
5IFTF
TFSWJDFT
BSF
TFQBSBUF
BOE
EJTUJODU
Must be 21 years of age or older. Non-transferable and non-negotiable. Hard Rock Rocksino Northfield Park Management reserves the right EJGGFS
JO
NBUFSJBM
XBZT
BOE
BSF
HPWFSOFE
CZ
EJGGFSFOU
MBXT
BOE
TFQBSBUF
DPOUSBDUT
'PS
NPSF
to void any entry, and/or alter, cancel or modify this promotion at any time with prior notice and Ohio Lottery Approval. Other restrictions JOGPSNBUJPO
PO
UIF
EJTUJODUJPOT
CFUXFFO
PVS
CSPLFSBHF
BOE
JOWFTUNFOU
BEWJTPSZ
TFSWJDFT
QMFBTF
may apply. See Players Club for details. For free, confidential help 24/7, call the Ohio Responsible Gaming Helpline at 1.800.589.9966. TQFBL
XJUI
ZPVS
'JOBODJBM
"EWJTPS
PS
WJTJU
PVS
XFCTJUF
BU
ubs.com/workingwithus
h6#4
©2016 Hard Rock International (USA), Inc. All rights reserved. 
"MM`SJHIUT
SFTFSWFE
6#4
'JOBODJBM
4FSWJDFT
*OD
JT
B
TVCTJEJBSZ
PG
6#4
"(
.FNCFS
'*/3" 4*1$
@"E@Y@-%@.D#0
*4
&YQ
 PAGE 14 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS Tax Tips: Peter A. DeMarco Wedding vendors Assessed penalties by the IRS? tie their own knots

Ask for a first-time waiver By MICHELLE PARK LAZETTE this before, only for a smaller slice of the industry: Her business, Wed/Al- Despite our best eorts to stay or- contact the IRS through its “practi- [email protected] tered, oers free and paid consulting ganized and timely in managing Peter A. tioner priority service” line to request via webinars and individual coaching business and personal tasks, some- DeMarco is the waiver. An IRS agent might be e Northeast Ohio vendors who sessions to independent bridal gown times things fall through the cracks. vice president able to grant the waiver over the make weddings happen soon will designers. Moon and Back opened Whether it’s missing a payment by and director of phone. have the option of entering into a three years ago as a showroom for a due date or failing to le an im- tax services at If the penalty is high, it may not union of their own. those designers, but it has since ex- portant document on time, some- Meaden & be so simple for an agent to settle In the works — thanks to a wedding panded to show and sell the gowns of times life just gets in the way. It hap- Moore. over the phone. In that case, the tax gown shop owner and a photographer non-Wed/Altered clients, too. pens to the best of us. It’s especially preparer would have to submit the — is a wedding vendor collective of- (Schneider started as a wedding true for harried business owners request in writing. And even when fering networking opportunities, dress designer, and knowing rsthand who are juggling many commit- er must have led all required re- it’s settled over the phone, it’s wise business development training, and the need to sell gowns and to show at ments and obligations on a daily ba- turns, or have led valid extensions. to document the phone call in a let- bridal shows and conferences to in- large shows, she started the collective. sis. ere can be no outstanding request ter to the IRS to assure the conver- dustry businesspeople. It’s set to kick As it turned out, Wed/Altered took o Historically, the Internal Revenue for a return from the IRS involving sation is reflected in the tax obliga- o in a few months. faster than her dresses did.) Service has given no leeway for those the taxpayer. tion. Such a joining of minds is particu- Vanessa Zangardi, who owns Zan- little moments of absent-minded- All tax due must be paid up, or ar- Tax preparers can forego phone larly useful for the wedding industry, gardi Photo with her husband, is ness when it comes to meeting tax rangements must be in place to pay calls and the long wait times they said one co-creator, Christen Schnei- helping to launch the as-yet-un- obligations. Penalties for tardiness all tax due. If taxes are being paid un- normally entail by writing to the IRS der. For one, the industry has its named collective. She envisions pro- are often assessed automatically. der an installment agreement, pay- directly. e letter will need to be share of young businesses, in many gramming on nancial and legal is- Deadlines and due dates are rm, ments must be current. As the name highly specic in order for the IRS to cases started by a bride or groom sues, among other topics. right down to the time stamp on the of the abatement waiver suggests, re- act on it, with the taxpayer’s identi- who couldn’t nd a product or ser- “We kind of muddled through postmark. lief will only be considered for rst- cation number, details of the penalty vice they wanted for their big day. that,” she said of her husband’s and Or so it seems to most taxpayers. time penalties for the preceding type and amount as well as the tax “It’s an industry, too, where cou- her launch of the photography busi- In truth, the IRS has had a provision three years, except in the case of an year and form for which the penalty ples are trying to shop local; that ness. “It would have been great to in place for waiving certain rst- estimated tax penalty. was assessed. opens the gates for a lot of small busi- have a resource.” time penalties, but taxpayers rarely If a taxpayer has been granted re- The letter will also need to ex- ness owners to make a living,” said Given how frequently wedding take advantage of it. Maybe that’s lief in the past due to “reasonable plain all the ways in which the tax- Schneider, who owns Moon and vendors nd prospective clients on because they don’t know it was cause,” they can still qualify for the payer qualifies under the criteria Back, a bridal gown boutique in social media, informational sessions available to them, or maybe because rst-time penalty waiver. Reasonable for the first-time waiver, and it Lakewood. “ e service-based in- about using Instagram and running the IRS hasn’t gone out of its way to cause for missing a ling or payment doesn’t hurt to include relevant dustry in Cleveland is growing (and successful Facebook ad campaigns oer it. deadline might include a re or other documentation to show all of that those businesses) need resources. make sense, too, Zangardi said. Now the IRS is becoming a little natural disaster, a death or serious compliance. “It’s far easier to start a small busi- “We don’t always have time to more forthright, making information illness, or some reasonable inability Business owners caught up in the ness now than it was 10 years ago be- meet brides face to face, so knowing on its “rst-time penalty abatement” to obtain records. day-to-day complexities of running cause of social media and the web,” how to meet them via social media waiver more widely available. e Taxpayers who nd themselves in a business might inadvertently nd Schneider continued. “And weddings tools is very important,” she added. administrative waiver allows the IRS the occasional “uh oh!” moment themselves on the wrong side of a in particular tend to be a good place to Increased referrals are a top bene- to grant penalty relief to taxpayers where they realize they failed to drop tax deadline. It should be comfort- start; with weddings, a lot of times t the collective should aord ven- who fail to le, pay, or deposit on an item in the mail on time can re- ing to know those slip-ups can be there’s not as much overhead. You get dors, noted both Zangardi and Cora time, of course only if they meet quest a waiver in a few dierent ways. corrected with a little eort in apply- booked and paid before you do some- Mercer of SewCora, which sells luxu- some specic criteria. First, they can contact their tax pre- ing for a rst-time penalty abate- thing so you can aord to start up.” ry alterations and redesign of bridal To qualify for the waiver, a taxpay- parer or tax practitioner, who can ment waiver. Schneider has done something like gowns through two locations in

NETWORKING LUNCHEON LAKEFRONT COLLABORATION: EXCITING PROJECTS THAT ARE UNDER DEVELOPMENT

MONDAY, MARCH 20, 2017 Jon Stahl, LeanDog • An overall update on the lakefront development • Lakefront Collaborative, Barge 225/LeanDog, Cleveland Skylift • Why developing the lakefront is good for Cleveland

Windows on the River 2000 Sycamore, Cleveland, Ohio, 44113 11:30 a.m. Networking • 12 Noon Luncheon • 1:15 p.m. Adjourn SME Cleveland members $30, Guests $45 R.S.V.P. at 216-767-5951 or online at www.smecleveland.com

SPONSORED BY:

RIDE RTA TO TOWER CITY CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 15 SMALL BUSINESS

Adviser: Joe Mosbrook Small businesses shouldn’t try to hide who they are “Fake it ‘til you make it.” thentic voice that resonates with its at’s the working mantra for Joe Mosbrook audience. It should be honest and many small businesses overwhelmed is managing sincere — something prospects don’t by larger, more established competi- partner of feel compelled to question. tors. It’s a mindset that spawns bom- Acclaim Focusing on a niche can take the bastic marketing claims of all things Communica- same shape. Bruce Hennes of to all people. But to a skeptical con- tions LLC, a Hennes Communications decided sumer, it never quite adds up. full-service years ago that his PR rm would fo- ere was a time when universal marketing cus only on crisis communications, marketing worked. e problem now agency in Cleveland that and the strategy continues to reso- is that prospects are blinded by a employs only senior-level nate throughout the region. blizzard of messaging they rarely be- account executives, designers As an unintended consequence, lieve. Fake news, post-truth politics and web developers. the crisis rm receives countless re- and marketing hype have eroded the quests for traditional marketing — a Moon and Back’s Christen Schneider is partnering with a photographer public’s trust in small businesses service Hennes does not promote. to launch a wedding vendor collective. (Michelle Park Lazette for Crain’s) struggling to be known. caption that read “our work is just as is is an important point because But many customers don’t always good at home as it was in a high-rise many small businesses fear that nar- Cleveland and Columbus. she said. It’d pack quite the market- want the biggest and best. ey often oce.” rowing their marketing message pre- “Photographers, marketing peo- ing power, too. just want a vendor that ts — ts It’s a big step for a small rm to vents other revenue opportunities. ple, sometimes they see the brides “If I have an appointment meeting their needs, their culture and their narrow its focus and communicate Ironically, the opposite often oc- before we do,” said Mercer, who has me,” Schneider begins, “that bride is service expectations. ey want a unique value in excruciatingly blunt curs. Companies well known for a been coached by Schneider through going to see others. Everybody’s mar- hardworking company that’s honest language. ey not only admitted specialty unintentionally invite addi- Wed/Altered. “ ey could say, ‘Hey, keting works for the whole group. e about who they are and what they do. who they were, they owned it. ey tional lines of business. e thought check out this designer. Check out co-working space allows people to Some prospects even seek out small- tapered a pompous elevator speech is that if the company is perceived as this bridal shop.’ ” multiply their reach, have a mailing er vendors hoping they’ll work hard- right down to an uncomfortable pair an expert in one area, they must be A coworking space for vendors is address, not sit in Starbucks for four er for the business. of skinny jeans. great in others. is is how Porsche also an aim, though less of a certainty hours to meet with people.” A few years ago, a handful of suc- Billings doubled in the second inexplicably completes with Range until the right space is found. Schnei- Helping other small business own- cessful attorneys in Toronto split o year. e next year they tripled. A few Rover in the luxury SUV market. der said the collective creators would ers make a living and create jobs is from their large-rm jobs to start their years later the rm was acquired in e challenge is rst becoming like it to be between Lakewood and one motivation for launching the col- own. Most worked from home on cell an eight-digit deal that made the eq- known in an area and controlling downtown Cleveland. lective. Helping the community via phones and laptops. eir web site uity employees rich. roughout that market. Once a company estab- “Wedding business owners, a lot of philanthropy is another. highlighted denim-clad employees in their rise, they remained condent in lishes a leadership role, opportuni- those businesses (lend) to working “Being involved in the small busi- a communal oce that better resem- their abilities. eir marketing resist- ties emerge beyond the specialty and from home,” she said. “(But owners) ness sector allows you to make those bled a Starbucks than a law rm. ed tired accolades that lull readers become far more attainable. still need to meet with prospective dierences; a lot of them do really eir web site resisted superlative into a coma. For their clients, those If you don’t think your company clients.” cool stu,” Schneider said, citing one headlines. Instead, they focused on things were understood. Overstating has a unique and believable value A coworking space would aord local jeweler, Bombay Taxi, that do- the proposition of reducing fees by them would appear desperate. proposition, create one. Yes, that’s vendors a professional and dedicat- nates 10% of its net revenue to charity. stripping out the pomp and circum- It’s dicult to look past catchall easier said than done, but it doesn’t ed place for meeting clients and also “It’s building that community base stance. eir web site said: “Our fees marketing when every garage-band require retooling the company. It just networking with fellow vendors at that allows a lot of people to serve a lot are lower because we don’t wear startup claims to be the next great changes the way you take your exist- the lower cost of shared overhead, of causes that I couldn’t do by myself.” $1,500 suits.” Another image held the thing. A good business needs an au- ing business to market.

Overdose takes more lives than traffic accidents, suicide, and HIV combined.

OVERDOSE IS IMMINENT UNLESS YOU STOP

“Luna Living’s treatment program for addiction combines evidence based standards of care with the added novel approach of NAD infusion therapy, which effectively neutralizes withdraw- al symptoms to such a dramatic extent that most clients can be successfully managed as outpatients from Day 1 of their enrollment in the program.”

Dariush Saghafi, MD Chief Neurologist - Parma Neurology Director - Headache Clinic - VA Medical Center

A Comforting Ambience Non-judgmental Acceptance A Sustainable Lifestyle /XQD/LYLQJ Alcohol and Drug 440-703-0940 Recovery Center www.lunaliving.org PAGE 16 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS You’ve got better things to do with your time. Avoid the fuss and expense of batteries!

Phonak Audeo B-R Rechargeable Hearing Aid.

Cleveland Hearing & Speech Center is the premier provider of audiology products and services. We help you connect to the people and activities most important to you!

Call for an appointment today! University Circle 216-231-8787 South Euclid 216-382-4520 Broadview Heights 440-838-1477 www.chsc.org/hearing MS049400

success IS easy to find...

This image won a National ADDY Award in the digitally enhanced photography category. (Contributed photos)

fully when he and Kalman added as- KP sistants like Brown in 1992. And all CONTINUED FROM PAGE 11 work trickled down from this DIY mentality. Rental equipment was es- Afterward, they sang for artist chewed for brand new equipment. If Popovic, save for art director Craig a shower scene needed to be con- Brown, who was busy tinkering with structed, they’d do it in-house. the right lighting for a “real” pineap- e same goes for Kalman’s prop ple. He rushed over in his sneakers. “I room — a sizable space with thought it sounded pretty good from two-thousand pieces of kitchen ware, we know back here,” he said, and at last every- all color-sorted — which could be the one was together. largest in the Midwest, save for like irty years after Kalman & Pabst studios in Chicago. Pabst and Kal- where to look. snapped its rst shot, business inside man’s relaxed, familial schtick, de- the 18,000-square-foot studio seems picted in their very own American to be brighter than ever. In the last Gothic simulacrum hanging by the three years, KP has continued to replace, has birthed what many vet- grow into one of the most protable eran KP workers still call today a award-winning photo studios in “utopic experience.” And for a tting Northeast Ohio, with nine ongoing reason. ey’ve won national awards commercial clients and even more annually since Brown and Wasser- Call 216-302-4769 or visit manchesterrbg.com/crains advertising agencies, a showman- man took over. ship awarded last February with six “ e thing is we could teach just ADDYs from the American Advertis- A sample of KP’s work for Da Vinci about anyone what we needed to do,” ing Foundation. Work not just from Wines. One of KP’s specialties is Pabst, now 69, and living in Wake- newbies or greenhorns. e average food and beverage styling. man, Ohio, recalled. “But the most KP employee has been with the stu- important thing to me was a person’s Oce/Warehouse Building dio for, on average, nearly a decade. ness guru with a jogger’s build, butt- character. I think we hired more folks FOR Although the studio’s vast array of ed in. just because they were solid people. I 2241 Pinnacle Parkway, Twinsburg, OH 44087 work speaks volumes for its liveli- “You see how some corporations mean, when someone feels a part of a SALE hood — a lightly-edited shot of an are treating their employees,” he said. team, or family, they will work harder OWNER USER OR INVESTMENT OPPORTUNITY knife-wielding octopus, for one — it’s “And you see how much cash — liter- for a goal. Absolutely. It’s just com- not KP’s top-notch artistry, said its ally cash they have on hand at the mon sense.” sta, that’s solely responsible for bank. And that phrase, ‘It’s just busi- Although Pabst no longer photo- $1,200,000 their praise. ness?’ It’s just a choice. ey use that graphs professionally at the Studio Before co-owners Mike Wasser- as an excuse. ey choose to run a on Perkins, his name, along with Kal- man and Craig Brown, who took over business that way. Choose to put man’s, is still spoken of in sweet re- the studio in 2014, hire their next prots above everything else. We gard by their inheritors, mostly owed commercial-style Man Ray, they pre- have a very small group, but in this to Pabst’s retirement-era skill set — fer to skip resumé-obsessing in place little universe we can at least treat knife collecting, landscape painting of scouting new “personalities” who people ethically. To us, that’s what it — that has earned him, somewhat ˆ‰,Š‹‹ t well in the KP Photo matrix. Not comes down to. We don’t want to run jocularly, the title “Most Interesting SQ FT just beer buddies, but sta deemed a business any other way.” Man in the World” from KP’s current indispensable. Or, as they say, those Started in 1987 by two former employees. A legend, of sorts. with unmatched “emotional intelli- American Greetings employees Minding that Pabst initially aimed gence.” named Bob Pabst and Jan Kalman, to run KP well into his 70s, the found- “It’s never, ‘Oh hurry up before we KP Photo — as says a four-foot sign in er now happily looks upon his “wake get this person, or we’re gonna lose the dining space — began as a up call” decision to hand his busi- them,’” Brown said calmly, rushing team-driven enterprise in retaliation ness o not so long after Kalman SVN SUMMIT COMMERCIAL on set to make an end-of-day dead- to a cutthroat age of loud-mouthed passed away from breast cancer in REAL ESTATE GROUP, LLC line for GE. In his loose button-down, art directors and ego-driven camera 2012. Of course, Pabst isn’t a stranger. CONTACT he appears rather on a beach vaca- artistes. No one at KP, even distant freelanc- Jerry Fiume, SIOR, CCIM tion. “But have we learned who that Pabst, a former Vietnam-era mili- ers from Michigan, ever seems to be. Managing Director 3045 Smith Road, Suite 200 person is? I mean, if everybody’s not tary photographer, said that though “I go back once a mouth to just get 330-416 0501 Akron, OH 44333 working together, it’s frustrating for KP’s team-driven ethos was rooted in lunch and hugs from everyone,” he [email protected] (234) 231-0200 somebody.” his experience at Irving Stone-era said. “I couldn’t be more pleased Wasserman, a curly haired busi- American Greetings, it blossomed with what they’re doing.” CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 17 TAX LIENS The Internal Revenue Service fi led Biskind Contract Avon Pizza LLC (Coleone’s Date fi led: Feb. 9, 2017 Type: Employer’s withholding tax liens against the following Cleaning LLC Pizza and Subs) Type: Employer’s withholding Amount: $5,757 businesses in the Cuyahoga County 6777 Engle Road, Suite 1, 375 Lear Road, Avon Lake Amount: $13,659 LIENS RELEASED Recorder’s O ce. Liens reported Cleveland Date fi led: Jan. 6, 2017 here are $5,000 and higher. Date fi led: Jan. 6, 2017 Type: Employer’s withholding, Mathews Appliance Service LLC Elite Custom Contractors 5539 Ridge Road, Parma LIENS FILED Type: Employer’s withholding, partnership 1672 Algeris Drive, Mayfi eld Heights partnership Amount: $16,314 Date fi led: Feb. 9, 2017 Date fi led: Nov. 12, 2015 Lifeline Home Health Services LLC Amount: $114,721 Type: Employer’s withholding Date released: Feb. 9, 2017 12200 Fairhill Road, Suite C 438/440, Foiltek Inc. Amount: $13,533 Type: Employer’s withholding, Cleveland Intriex Inc. 1700 London Road, Suite 2A, unemployment Date fi led: Jan. 3, 2017 5650 Mayfi eld Road, Lyndhurst Cleveland Extasis Salon & Spa LLC Amount: $10,391 Type: NA Date fi led: Jan. 6, 2017 Date fi led: Jan. 6, 2017 11277 State Road, Suite B, Amount: $3,436,876 Type: Corporate income Type: Failure to fi le complete return, North Royalton Parma Pre-School Inc. Amount: $38,506 corporate income Date fi led: Jan. 6, 2017 5280 Broadview Road, Parma Blink Marketing Inc. Amount: $15,691 Type: Employer’s withholding Date fi led: May 11, 2010 (oldest of Litwin Paints & Supplies LLC 1925 St. Clair Ave. NE, Cleveland Amount: $12,837 four liens) Global Management & Date fi led: Feb. 9, 2017 845 South Ave., Youngstown Date released: Jan. 6, 2017 Consulting Services Type: Corporate income, employer’s Date fi led: Feb. 9, 2017 Accurate Instrument Service Co. Type: Employer’s withholding withholding Type: Employer’s withholding 9885 Rockside Road, Suite 160, 4228 W. 130th St., Cleveland Valley View Amount: $40,066 (four liens Amount: $390,784 Amount: $26,535 Date fi led: Jan. 6, 2017 released)

ADVERTISING

Weatherhead Executive MBA Develop transformational leadership skills for immediate growth in your career and life. Now offering a healthcare track in affiliation with the Cleveland Clinic.

The space you The power you need to learn. need to lead.

Learn more at weatherhead.case.edu/emba.

ENGINEERING & CONSULTING HEALTH CARE ENGINEERING & CONSULTING REAL ESTATE Jim Rowell Adam Wolinetz Chief Operations Of cer Vice President Nook Industries JLL

In this position, Rowell will be Adam Wolinetz joins JLL as Vice responsible for overseeing Nook’s President, Integrated Portfolio leadership initiatives, driving Solutions. He comes to JLL after operational strategy and supporting employee more than ve years as a Manager with Allegro development. Rowell has more than 25 years of Realty Advisors. Adam is an accomplished industry experience. Prior to joining Nook, he held international portfolio manager with extensive Robert D. MacArthur Giovanni Spadaro roles in Parker Hanni n’s Fluid Connectors and experience managing diverse assets throughout ve Executive Vice President of Chief Financial Of cer Automations groups as territory manager, product continents. He has managed large portfolios for manager, business unit manager, manufacturing mid-cap and Fortune 1000 companies with a Strategic Initiatives NOMS Healthcare manager, general manager and vice president of combined portfolio of more than 200 locations. operations. Adam is a graduate of The University of Kansas. Predictive Service NOMS Healthcare promotes Giovanni Spadaro, BSBA, MBA, to CFO. Known for savvy budgeting, TECHNOLOGY LAW Robert D. MacArthur has been named Executive cash  ow analysis and asset management, Vice President of Strategic Initiatives for all of Spadaro is deeply committed to NOMS’ focus on Terry Cummins Brent S. Silverman Predictive Services enterprise asset manage- providing the region with top quality healthcare at EVP, Sales Principal ment operations. MacArthur is responsible for lowest possible patient costs. With his expertise, OEC Ciano & Goldwasser L.L.P. developing overall business relationships with NOMS is setting the standard for scal ef ciency key account and strategic initiatives for business in healthcare. Spadaro is a member of the Terry Cummins has joined OEC as Ciano & Goldwasser L.L.P. is growth. Prior to joining Predictive Service, Cleveland Chapter of The Association of MacArthur was a senior executive with ABS EVP, Sales. Terry will manage the pleased to announce that Brent S. Accountants and Financial Professionals in Direct Sales team and is responsi- Silverman has joined the rm as a Group serving as Vice President of Asset Business. Visit NomsHealthCare.com. Optimization Services and later as Senior Vice ble for driving increased sales through automotive principal. He focuses his practice on high stakes President. dealers and dealer groups. Previously, Terry served business litigation matters including shareholder/ as VP, Sales for Dealer-FX Group, spent 17 years partnership disputes, business tort liability, trade with Reynolds & Reynolds and led numerous product secret and non-competition agreement disputes, launches around the globe. professional and duciary liability, real estate FINANCIAL SERVICES FINANCIAL SERVICES litigation, and investor claims. He has signi cant Jill A. Branthoover Patrick J. Rollins MANUFACTURING experience in all aspects of litigation in federal and state courts throughout the country. Wealth Planner Certi ed Private Wealth Advisor Diane Popovich RSM US Wealth Management Morgan Stanley VP Operations LLC Solon Manufacturing Company Morgan Stanley announces that Jill Branthoover has joined the RSM Patrick Rollins, a First Vice Solon Manufacturing Co., located in Crain’s People on the Move promotional Wealth Management team in President and Financial Advisor in Chardon, is pleased to announce feature showcases Northeast Ohio the Firm’s Wealth Management of ce in Cleveland, Cleveland. Having earned the respected Certi ed Diane Popovich as VP of Operations job changes, promotions and board Financial Planner designation and broad industry has earned the Certi ed Private Wealth Advisor and the rst female executive in company history. appointments. Guaranteed placement in experience with prior roles over the last 2 decades designation awarded by the IMCA, intended for Popovich joined Solon in 2015 as the Sales & at Merrill Lynch, Fifth Third Bank and most recently Financial Advisors who work with high-net-worth Marketing Director and has over 20 years of print, online and in a weekly e-newsletter UBS, Jill’s knowledge of wealth planning and clients. In 2015, Patrick earned Morgan Stanley’s experience serving the manufacturing industry. As can be purchased at Family Wealth Director designation following a investments will enhance the delivery of RSM’s VP of Operations, Popovich will oversee all www.crainscleveland.com/peopleonthemove. Wealth Management strategy. Jill will develop rigorous accreditation program. He has been a operational processes within the organization with a personalized nancial plans for clients while helping member of the nancial services industry for 22 key focus on identifying and developing best deliver “The power of being understood.” years. practices for process improvements. PAGE 18 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS


 2514<++
+3+,/8
+6:/)+7
/627 '30+*
(<
8.+
392(+6
4,
'6+'
564,+77/43'17  


     
   
  
    %  #    % 
 ! ! " 

$! "

7;'1*
47     00>
.:884>>4:9> 8;7:D00
-09014?>
>?=,?024.
.:9>@7?492
2=:@;
-09014?> &:-0=?

7:96 
'@;0=4:=
A0
70A07,9/
  -=:60=,20
49?02=,?0/
30,7?3
,9/
B07790>>
8,9,20809? $  
 BBB:>B,7/.:8;,940>.:8 =0?4=0809?
;7,9
.:9>@7?492

#/11/7
4;+67
#'8743   # # 09014?>
>?=,?02D
/0>429
,9/
;=4.492
;3,=8,.D
-09014? 49,
,>3@6 
!,60>4/0
A0
'@4?0
 
70A07,9/
  8,9,20809?
.:9>@7?492
-09014?>
,/8494>?=,?4:9
,9/ 8,9,2492
.:9>@7?,9?  
  BBBB4774>?:B0=>B,?>:9.:8 0C.3,920
.:88@94.,?4:9
,9/
.3,920
8,9,20809?

+12'3

4  00>
,9/ /8494>?=,?4:9
:1
7410
,9/
30,7?3
49>@=,9.0
;=:2=,8>
1:= ,A4/
!
'078,9  
%,=67,9/
7A/
",D1407/
0423?>
  .:884>>4:9> 08;7:D0=>
149,9.4,7
49>?4?@?4:9>
,11494?D
2=:@;>
,9/ ;=0>4/09?
$  
   BBB>078,9.:.:8 49>@=,9.0
.:8;,9D
;,=?90=>

&
3)    4C0/
100> =:@;
30,7?3
-09014?>
.:9>@7?492
,9/
,/8494>?=,?4:9 "4.3,07
%
:@E07:>   
$,6
(=00
7A/
':@?3
'@4?0
 
9/0;09/09.0
 .:884>>4:9> =0?4=0809?
;7,9
>:7@?4:9>
;,D=:77
$&
170C
;=:;0=?D ;=0>4/09?
09014?>

9>@=,9.0  
 BBB.-4E.:8 ,9/
.,>@,7?D
7410
49>@=,9.0
,9/
&
.:9>@7?492

+6)+6 # D
;=:50.? &0?4=0809?
,9/
=4>6
8,9,20809?
30,7?3
,9/
B071,=0 '.:??
4;0=
70A07,9/ %4??>-@=23 
%@-74.
'<@,=0
'@4?0

70A07,9/
  .:884>>4:9>
14C0/ -09014?>
49A0>?809?
.:9>@7?492
,9/
8,9,20809?
?,709? :114.0
70,/0=
!,==D
'.30=0=  
  BBB80=.0=.:8 100>
3:@=7D
=,?0> >?=,?0240>
,9/
8,9,20809? =0?4=0809?
:114.0
70,/0=

'11'-.+6
+3+,/8
+6:/)+7
3)    00>
,9/ =:60=,20
,9/
.:9>@7?492
49
30,7?3
,9/
B071,=0 ",=6

7/0= 
'@;0=4:=
A0
'@4?0
 
70A07,9/
  .:884>>4:9> =0?4=0809?
B07790>>
3@8,9
=0>:@=.0>
.:8;09>,?4:9 ,=0,
;=0>4/09?  
   BBB,52.:8 30,7?3
.,=0
,9,7D?4.>
-09014?>
.:8;74,9.0

/3*1+<
':/+7
3)     001:=>0=A4.0 0,7?3
,9/
2=:@;
-09014?>
=0?4=0809?
.:9>@7?492 &:-
&:20=>


?3
'?
'@4?0
 
70A07,9/
  -,>0/
:9
3:@=7D ,.?@,=4,7
>0=A4.0>
/01490/
.:9?=4-@?4:9
;7,9 ;=49.4;,7  
  BBB149/70D/,A40>.:8 =,?0> =0.:=/600;492
/01490/
-09014?
;7,9
,/8494>?=,?4:9

7796+*
'683+67
4
';743     :884>>4:9>
14C0/ 9/@>?=D>;0.414.
>:7@?4:9>
?3,?
09,-70
-@>490>>
:B90=>
?: D;
!
&:>> 
49=:>>
!,60>
%,=6B,D
&4.31407/
  100> ,??=,.?
,9/
=0?,49
08;7:D00>
B3470
2=:B492
?304=
-@>490>> =024:9,7
;=0>4/09?  
 BBB/,B>:9.:8;,940>.:8

.+
+*+1/
6495     D
>0=A4.0 8;7:D00
-09014?
;7,9
/0>429
49.7@/492
.:9>@7?492 )8-0=?:
%
0/074  
&:.6>4/0
&:,/
141?3
17::=
9/0;09/09.0
 .:884>>4:9>
14C0/ .:8;74,9.0
B07790>>
>071
1@9/492
,9/
/,?,
,9,7D?4.> $  
  BBB?3010/0742=:@;.:8 100> A:7@9?,=D
,9/
0C0.@?4A0
-09014?>
2=:@;
;@=.3,>492

15.'
6495
-+3)<
3)     :884>>4:9> &'
,9/
$!
.:8;74,9.0

,/A4>:=D
B07790>> :39
+,49
8,9,2492
;,=?90=
48  
&:.6>4/0
&:,/
9/0;09/09.0
 >?,?0240>
:97490
,/8494>?=,?4:9
,9/
09=:77809?
& '.3,/0
/=40990
*4.3477
0A49  
  BBB?30,7;3,2,.:8 >@;;:=? ",.6,D
=4,9
';0,=
;=49.4;,7>

6/3/8<
+37/43
437918'387   &0?,490=
14C0/
100> .?@,=4,7
.:9>@7?492
,/8494>?=,?4:9
;7,9
/0>429
;7,9 9?3:9D

+,==09 
":9?=:>0
+0>?
A0
'@4?0
 
:;70D
 -D
;=:50.? /:.@809?> ;=49.4;,7  
  BBB?=494?D;09>4:9.:8

   :9>@7?492
100> @8,9
.,;4?,7
8,9,20809?
14=8
.:8-49492
.:9>@7?492 48
:;649>  
:.3=,9
&:,/
':7:9
  .:884>>4:9> -=:60=,20
,9/
,/8494>?=,?4:9
1:=
@94<@0
.7409?
:@?.:80> ;=0>4/09? 
 
 
3??; .;43=.:8 ,/8494>?=,?4:9
100> 4736@--
-5-.1;
"-9=1+-:
194: !)52-,
*@
;0-
5<4*-9
6.
)9-)
796.-::165)3:   YOUR BUSINESS IS OUR BUSINESS

 
#" ! ! "" " # #
˜—ŠŒȱŠĴ‘Ž ȱŠ•˜—Ž¢ȱƸȱ#" ––Š•˜—Ž¢ȓ–Š•˜—Ž¢—˜Ÿ˜—¢ǯŒ˜–ȱƸȱŘŗŜǯřŜřǯŖŗŖŖ #"  
!""  
   "#  (!  &"#     (" 
 "#!$#$! "!%" #
 
'$#%

65
->1;;   " " /+6>2
+8.
,/8/03>=
3
+8.
38@/=>7/8>
>+6/8> %C+8
6+-5
:+<>8/<
7+<5/>   
%9-5=3./
%9+.
&?3>/

8./:/8./8-/
 +8.
398=
=/<@3-/= 6/+./<
>-97 /+6>2

/8/03>=
$<+->3-/
/+./<

      //=
-9773==398= /+6>2
-+381
-9<:9<+>/
A/668/==
 5
+8. 37
?=>38  
%9-5=3./
%9+.
&?3>/
 
8./:/8./8-/
 3
:6+88381
A9<5=3>/
7+<5/>381
+8.
:<9:/<>C
+8. <3+8
3<=-2  
   AAA80:-97 -+=?+6>C 7+8+1381
.39<=

"26,)
156;;1     C
:<94/-> /8/03>=
-97:/8=+>398
 5
009<.+,6/
+ +
<3@/
!+C03/6.
)366+1/
  -9773==398=
03B/. :6+88381
+8.
-97:63+8-/
,/8/03>
:6+8
+?.3>=
3 -2+3<7+8  
 AAA=59.+7389>>3-97 0//=
29?<6C
+38/< :6+8
./=318
+8.
+.7383=><+>398
A/60+381

91;;65
)33)/0-9     9773==398=
0//= &><+>/13-
,/8/03>=
:6+8
2/+6>2
-+2
&>
6/@/6+8.
  ./8>+6
+8.
630/
2/+6>2
8/<
:
7:69C//  

AAA,<3>>981+66+12/<-97 :<91<+7=
+8.
/7:69C//
38-/8>3@/
:<91<+7=
>/6/7/.3-38/ /8/03>=

0)74)5

0)74)5
5+    9773==398=
0//= 7:69C//
,/8/03>=
=><+>/13-
-98=?6>381
,/8/03>= *+6>/<

2+:7+8  

?<9<+
%9+.
&?3>/
 
'A38=,?<1
  ,<95/<+1/
38-6?.381
@96?8>+/
3 #  

AAA-2+:7+8+8.-2+:7+8-97 :6+8
-98=?6>381
/B/-?>3@/
,/8/03>=

#6,,
::6+1);-:
5+   9773==398=
03B/. /+6>2
38=?<+8-/
.3=+,363>C
38=?<+8-/
./8>+6
38=?<+8-/ .A+<.

C6+8.
<   
977/<-/
$+<5
&?3>/

/+-2A99.
 0//=
:<94/->
,+=/. @3=398
38=?<+8-/
630/
38=?<+8-/
/B/-?>3@/
-97:/8=+>398 :  
  AAA>9..+==9-3+>/=-97 +8.
,/8/03>=
=/->398

:6+8=
A/668/==
:<91<+7=

65,<-5;     C
:<94/-> /+6>2
+8.
:<9.?->3@3>C
3
-977?83-+>398= ?./

8./:/8./8-/
 -9773==398=
03B/. -97:/8=+>398
,/8/03>
+?.3>=
,/8/03>
9?>=9?<-381 -98=?6>381
+->?+-97 0//=
29?<6C
<+>/=

   3B/.
0//= %/-9<.5//:381
'$
+.7383=><+>398
3
:6+8 %9,/<>
!
3>>7+8  
&9698
%9+.
&9698
  0?8.381
7/.3-+6
:6+8
./=318 -98=?6>381
.3=-<3738+>398 #239
7+8+1381
:+<>8/<  
 AAA,.9-97 >/=>381
19@/<87/8>
036381=
%&
-97:63+8-/

3;0)5:
5:<9)5+-
/-5+@
5+     9773==398=
0//= %3=5
-98=?6>381
+8.
7+8+1/7/8>
:6+8
./=318
+8. +7/=

6>2+8=  

*+=2381>98
&>
2+1<38
+66=
 -97:63+8-/
1<9?:
7/.3-+6
.3=+,363>C
./8>+6
630/
+8. :
#  
 AAA+6>2+8=38=?<+8-/-97 @3=398
38=?<+8-/


15)5+1)3
96<7
5+     //=
:/<-/8>
90 $<9@3./
3
:6+8
-98=?6>381
=/<@3-/=
38
>2/
09< $/>/
+:6+8
:   
%+@/88+
%9+.
(83>

'A38=,?<1
  +==/>=
7+8+1/. :<903>
+8.
89>09<:<903>
=:+-/ <3+8
$/><9=
#  
   AAA:5038+8-3+61<9?:-97 -9773==398=

$"
5:<9)5+-     9773==398=
9< 7:69C//
,/8/03>=
=><+>/13-
-98=?6>381
1<9?:
,/8/03>= +>/
!
+81   
#+5
'/

8./:/8./8-/
 03B/.
0//= ,<95/<+1/
:9:?6+>398
2/+6>2
7+8+1/7/8>
3 :
7:69C//
/8/03>=  
   AAA?=3-97 :6+8
-98=?6>381

9->:;-9

9->:;-9
5+    3B/.
0//= $6+8
./=318
+8.
+.738=><+>398
09<
 5
+8.
-+=2 988+
/<  
6+-5,<995
%9+.
$+38/=@366/
  ,+6+8-/ ./038/.
,/8/03>
:6+8=
3
:6+8
/<  
  AAA,/<+8.,/<-97 9A8/<=

!"!
(
$
" !

'2/
0?66
63=>
-98>+38=

-97:+83/=
+8.
3=
+@+36+,6/
09<
:?<-2+=/
+>
AAA-<+38=-6/@/6+8.-97
809<7+>398
3=
=?::63/.
,C
>2/
-97:+83/=
<+38=
.9/=
89>
38./:/8./8>6C
@/<30C
>2/
3809<7+>398
+8.
>2///
>2/=/ 63=>381=
+/
9<
+--?<+>/
*/
A/6-97/
+66
0//.,+-5
+8.
A366
38-6?./
973>>/.
3809<7+>398
9<
-6+<303-+>398=
38
-97381
3==?/=   &0-5
;1-:
6++<9
.194:
)9-
9)52-,
*@
;6;)3
36+)3
-4736@--:   
)+8<19-,
4736@--
-5-.1;: 5;-95);165)3
15
<3@

1;
),67;-,
;0-

5)4-
15
):
256>5
):
<+2
65:<3;)5;:
)
'-96?
647)5@
<5;13
'-96?
:731;
1;:-3.
15;6
;>6
:-7)9);-
+647)51-:
15
)5<)9@
 CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 19 CBRE Retail realty’s hits and misses CONTINUED FROM PAGE 1 CBRE Group Inc. surveyed about 400 shopping centers and 1.9 million square feet of selling space for its annual retail report. The brokerage localizes the data by reporting it as trade areas. The trade areas are typically based either on the largest center in each or the city with the most retail space in a given area. Brandon Isner, CBRE research an- Trade area Vacancy rate (%) Asking rate ($/SF) Trade area Vacancy rate (%) Asking rate ($/SF) alyst, and two other sta ers had to 2015 2016 2015 2016 2015 2016 2015 2016 physically canvass the storefronts to Akron South 6.0 4.3 $11.30 $11.30 Independence–Rockside 3.9 3.9 $19.18 $21.00 produce the gure. e national bro- kerage also had to report street retail Alliance 17.2 10.3 $11.00 $10.53 Lake County East 15.6 15.6 $3.00 $5.91 for the rst time, a big switch from its traditional way of surveying about Aurora-Streetsboro 5.8 5.8 $15.27 $15.69 Lorain–Amherst 10.9 11.3 $11.61 $11.55 400 shopping centers above 50,000 Beachwood 3.2 3.4 $24.77 $25.88 Macedonia 2.8 3.6 $12.96 $12.54 square feet in size in eight Northeast Ohio counties. Isner said additional Bedford 33.0 33.2 $12.67 $13.06 Massillon–Canton Center 13.3 12.3 $7.00 $10.27 downtown retail data is a natural re- Belden Village–The Strip 5.4 5.9 $10.42 $11.92 Mayfield Heights 3.4 3.4 $18.03 $18.03 sponse to increasing urbanization in the U.S. Boston Heights–Hudson 1.1 1.1 $10.50 $10.50 Middleburg Heights 11.3 14.8 $10.45 $9.91 Keith Hamulak, CBRE vice presi- Broadview Heights–Brecksville 2.4 4.7 $14.18 $14.30 MidwayMall–Elyria/Sheeld 18.0 26.1 $8.46 $7.74 dent, said the rm is getting in- creased queries about downtown re- Brooklyn–Brook Park 12.7 13.5 $13.15 $13.26 Parma 16.2 17.1 $11.71 $11.00 tail space as well as neighborhoods Richmond Town Square 22.4 18.6 $17.41 $14.55 such as Tremont and Ohio City. Brunswick–Medina 18.6 22.3 $12.67 $12.83 “is is so we can drill down our Canton–City 11.1 25.4 $7.27 $5.59 Rocky River–Fairview 3.8 5.3 $17.84 $17.48 data properly,” Hamulak said. “In the past, there was little demand from Chapel Hill 14.3 14.9 $16.06 $15.21 Severance–South Euclid 33.4 33.4 $9.85 $10.72 national retailers about downtown Cleveland–Downtown 10.4 10.4 $16.12 $16.04 Solon–Bainbridge 17.4 14.0 $15.86 $14.89 space. Now, national retailers want to know about downtown and Main Cleveland East–Euclid 12.0 10.2 $10.82 $10.40 South Park Mall–Strongsville 2.1 1.8 $16.46 $13.97 Street retail locations.” Cleveland West–Lakewood 5.4 7.4 $11.60 $10.69 Stow–Kent 10.2 9.6 $10.02 $9.76 Moreover, the market is changing between proposed downtown de- Cleveland South 11.0 10.1 $15.07 $15.73 Summit Mall–Fairlawn 0.7 1.2 $18.78 $22.45 velopments such as Stark Enterpris- Crocker Park–Westlake/Avon 6.5 4.4 $18.66 $16.39 Tallmadge–Brimfield 5.8 4.7 N/A N/A es of Cleveland’s 48-oor nuCLEus project in the Gateway District, Geauga 7.8 7.8 $7.49 $7.49 Tallmadge–Mogadore 9.6 11.2 $12.01 $12.21 which has 150,000 square feet of Wadsworth 6.2 6.2 $18.56 $18.56 proposed retail space, and develop- Great Lakes Mall–Mentor 5.4 5.3 $11.57 $11.97 ers converting oce buildings to Great Northern–North Olmsted 2.6 1.8 $15.66 $14.43 Willoughby 32.5 38.8 $11.75 $11.68 apartments also want to revitalize their rst-oor spaces with new re- Green–South Arlington Road 3.8 4.1 $9.91 $9.71 Market total 11.1 11.7 $12.47 $12.12 tailers. All told, CBRE estimates 550,000 square feet of retail is pro- and demographics are only getting posed downtown. better. e Summit Mall-Fairlawn Michael Deemer, executive vice area has a vacancy rate of just 1.2%. president of business development e area surrounding Great North- at Downtown Cleveland Alliance, ern Mall in North Olmsted and South said having a national brokerage rm Park Mall in Strongsville both have produce such information will be 1.8% vacancy. helpful as he is getting increasing re- e Beachwood area near Beach- quests for it. wood Place has 3.4% vacancy. Deemer said he personally esti- At the other end of the spectrum, mated the gure at about 10%, but he business prospects in some long-suf- believes many building and business fering mall-dominated areas are owners he works with peg it at a worsening as retailers launch a big much higher level. round of store closings. “For a lot of folks in the market- Richmond Town Square in Rich- place, that will be a real surprise,” mond Heights has 18.6% vacancy Deemer said. “In a lot of ways, I wish now, but CBRE estimates availability we had an earlier benchmark. As the in that area at 24.5%, a gure that downtown residential market has takes into account planned store taken o , we could show how much closings such as Sears and LaSalle the market has improved.” furniture at the mall. e report is also useful given the Likewise, at the Chapel Hill Mall leading role that chefs and quick- area in Akron, CBRE estimates avail- serve restaurants are playing in the ability at 23% after the Sears store retail sector. closes, while it is currently 14.9% va- Stephen Taylor, a CBRE vice presi- cant. dent who focuses on restaurants, Weak areas also are a drag on the said that when he works with chefs in area’s average asking rents. Cleveland or other parts of the state, Asking rates in the Beachwood they actively seek sites in revitalizing and Summit Mall-Fairlawn area are neighborhoods. $25.88 and $22.45, respectively. “It’s the walkability of the envi- Meantime, space near Midway Mall ronment that is drawing them. in Elyria carries just a $7.74 asking Breweries are also serving as a cata- rate per square foot, reecting its 26% lyst for neighborhoods,” Taylor said. vacancy rate. “It’s the attraction of storefront retail at rent pattern also shows de- that was popular from the 1920s to mand for the best locations is in- the 1940s.” creasing while lesser ones cascade in terms of rent and occupancy. Changing fortunes omas Flynn, a senior vice presi- dent in CBRE’s Akron oce, said re- Ironically, the 1950 and 1960-vin- tailers are responding to their chal- tage shopping centers and some of lenges by insisting on the best the early enclosed malls that devas- locations in the best markets. tated downtown retail are su ering “In the past, they would take a now. (lesser) location in an A market, but For example, the highest vacancy now they want the A location in the A rate in the region is 38.8% in an area market,” Flynn said. “It’s just getting that CBRE denes as the Willoughby harder.” area, which includes everything from David Browning, managing direc- Shoregate shopping center in Wick- tor of CBRE’s Cleveland oce, ex- li e to the much newer Shoppes at pects more of the same bifurcated Willoughby Hills. retail market in the coming year, es- Also ailing is the Bedford trade pecially with legacy retailers shutting area, which includes Meadow- stores. brook Market Square in Bedford “e best located centers in the and Southland USA in Maple best markets will do well,” he said. Heights. “ose that are not well-located will Meantime, areas with strong malls do worse.” PAGE 20 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS AKRON Prisons to plastics:

Southwest Orthopaedics Finding ex-inmates manufacturing jobs

By DAN SHINGLER fore, and it’s a signi cant challenge, Miller said. Truly physician-led. [email protected] Nonetheless, Miller said the em- Truly physician-owned. @DanShingler ployers she works with usually return to her for more workers, because At any given time in recent years, they’re happy with the reformed citi- Ohio has had about 50,000 citizens zens they’ve already hired. locked in its prisons. Each year, it re- “ey’re humble, gung-ho and leases about 20,000, but too often they want to work,” Miller said. they nd no jobs and little support on “We’ve seen several moved into su- the outside and end up back behind pervisory roles already.” bars after reoending. While Miller is all about getting Meanwhile, former inmates back to work, helping the state has over area manufacturers and reducing the 1,000 companies state’s recidivism rate, it’s still a busi- in the plastics ness, she said. TAPP is a for-pro t and polymers in- company, and employers pay to use dustry, including it — $4,200 for each employee they seven Global 500 hire. Employers pay half that amount companies. e at the time of the hire, and the rest af- industry has a ter the employee has completed their particularly job coaching and become estab- strong presence Miller lished in their new job. in Northeast However, Miller said, the employ- Ohio, anchored by companies in ers don’t have to bear the cost them- Greater Akron, but the segment rou- selves. ey can get federal tax cred- tinely complains that it can’t nd and its and help from the state to oset keep the dedicated workers it needs. the cost of the program and even “You can see the potential,” Vickie some of the wages they initially pay Miller said. to the reformed citizens they hire. Miller is not a plastics expert; she’s She said TAPP does the paperwork a corrections and rehabilitations ex- necessary for the employer to claim pert. She spent 17 years teaching in- between $2,400 and $9,600 in federal 35th Anniversary mates at the Ohio Reformatory for tax credits, and up to $8,000 in wage 35th Anniversary CLEVELAND BUSINESS

VOL. 36, NO. 47 NOVEMBER 23 - NOVEMBER 29, 2015 35th Anniversary ALLYSON O’KEEFE, 37 PROMOTE. Partner; PoCLEVELANDrter Wright BUSINESS Women in Marysville before striking reimbursement from Ohio’s “You VOL. 36, NO. 47 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completingNOVEMBERa sum-23 - NOVEMBER 29, 2015 mer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been pro- moted to real estateALL partnerYSON. O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,” said O’Keefe, a Columbus native whoPartner; lived downtownPoCLEVELANDrterforW10rightyears before moving to Rocky BUSINESS River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t take it for granted.” VOL. 36, NO. 47 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completingNOVEMBERa sum-23 - NOVEMBER 29, 2015 When O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been pro- WHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate partner. Just seeing what Cleveland has gone throughALLY inSON the time O’KEEFE, that I’ve 37been here, there’s obvious- “Young professionals who live downtown are so excited about the city,” said O’Keefe, a ly a lot of excitement around real estate development. I started in 2004 when we were crazy Columbus native whoPartner; lived downtownPorterforW10rightyears before moving to Rocky River. “The ones on a new venture in 2015. Hire, You Train, We Pay” program. busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.” Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sum- When O’Keefe is not working or spending time with her husband and two children, she can MANY OF THE PROJECTS YOmerU WO internshipRKED ON therAREeMIasXEaD-USCaseEWeURsternBAN PROJReservECeTSUniversity. IS law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. THAT AN AREA OF EXPERTISwE?orked on many significant deals across Cleveland, including Flats East Bank, The Yes, definitely. Real estate isMetropolitanextremely inte at theresting 9, Uptown because inev Universityery deal Ciisrc differ-le and Steelyard Commons, and has been pro- WHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get boremotedd because to re there’sal estate so partner much va. riety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious- credits to historic renovations,“Young from profground-upessionalsdevewholopment live downtown to rehab, ar frome so excited about the city,” said O’Keefe, a ly a lot of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones Let the Custom Reprint Department help you leverage this great press. busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. Why not? HOW WOULD YOU DESCRIBEelse,YOyURou LEADERdon’t taSHke IPit foSTYr granted.LE? ” I definitely believe in leadingWhenby exa O’Keefmple.eI exis notpectwo therking people or spendingwith whom timeI wowithrk, her husband and two children, she can MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS my associates, to work haberd,fandound thvoeylunteering see me wo onrking theve boardsry hard of. nonprofitFor me, it’s organizations all and watching college football. THAT AN AREA OF EXPERTISE? about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differ- WHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get bored because there’s so much variety there, from tax WHAT OTHERS ARE SAYIJustNG: WH seeingAT WA whatS IT Cl LIeveKE landTO WOhasRKgoneWITH throughO’KEEFE inON the time that I’ve been here, there’s obvious- Miller joined other reform-mind- “So, in the end, the employers credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECly a lotT? of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. “Allyson is extremely brightbusy and with quickdevewlopment.itted, but That whatw trulasy sortdistinguishes of the boom he fromr ’04 through ’08. I saw it go through from most successful attornthe downturn,eys is her ex thenceptionalI saw it people rise again, skills.eve Shen strongerhas an than before locally. HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, concert with her to achieve win/winMA solutionsNY OF TH toE difficultPROJECTS problems YOU WO,” saiRKdED ON ARE MIXED-USE UR my associates, to work hard, and they see me working very hard. For me, it’s all Scott Wolstein, CEO of Starwood RetailTHATPartnersAN AR andEA OFco-dEXPEeveloperRTISE? of the about working hard and doing good work. Flats East Bank project. Yes, definitely. Real estate is extremely interesting because every deal is differ- ent. You can never get bore—dLeebecause Chilcot there’se so much variety there, from tax WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECT? mixed-use to residential. “Allyson is extremely bright and quick witted, but what truly distinguishes her from most successful attorneys is her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain CommunicationsHOW Inc.WO AllUL RightsD YO reserved.U DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visit www.crainscleveland.com.I definite #CC15040ly believe in leading by example. I expect the people with whom I work, concert with her to achieve win/win solutions to difficult problems,” said my associates, to work hard, and they see me working very hard.For me, it’s all Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work. ed people familiar with the challenge make money,” Miller said. Flats East Bank project. — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK W THE FLATS EAST BANK PROJECT? For more information contact “Allyson is extremely bright and quick witted, but what truly distinguishes her Reprinted with permission from the Crain's Cleveland Business. © 2015from Crain most Communicationssuccessful Inc.attorn All Rightseys is reseherrvexced. eptional people skills. She has an Further duplication without permission is prohibited. Visituncann www.crainscleveland.com.y ability to encourag #CC15040e the ‘adversaries’ in her negotiations to work in concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project.

Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved. Krista Bora, Reprint Account Executive Furtherduplication without permission isprohibited. Visit www.crainscleveland.com.#CC15040 of nding jobs for former inmates to Ohio taxpayers might bene t, too. [email protected] • tel 212.210.0750 form the Training Assessment Place- Since about 2000, Ohio’s three-year ment Project, or TAPP, which she recidivism rate has fallen from al- now heads up as project director. most 40% to below 30%, a trend Mill- e Ohio Department of Rehabili- er and others credit to proactive ef- tation and Corrections and the man- forts to employ former inmates and ufacturing services arm of trade help them adjust to life on the out- group PolymerOhio partners with side. TAPP is just one part of a larger Miller in the endeavor. eort in that regard, Miller said. So far, she’s been working in cen- But every success means that a tral Ohio, mostly with plastics com- prisoner goes from costing the state panies in and around Columbus. tens of thousands of dollars a year for Now, she said, she’s spreading the incarceration costs to becoming a program to Northeast Ohio as well. taxpayer themselves, Miller said. “We currently have 21 companies And the jobs are good, she said. under contract, and we beat our goal “None of my positions are for less of placing 20 folks last year. Our goal than $12.50 an hour, and some are this year is to place between 75 and more than $30,” she said. 100,” Miller said. Industry supports her eorts as If that sounds like a slow pace rela- well, which is why PolymerOhio says tive to the number of prisoners re- it began promoting TAPP in North- leased each year, it is — and that’s by east Ohio this year. design, Miller said. It takes time to “I’ve been here three years, and ev- prescreen and conduct extensive ery time we would go see a manufac- background checks on applicants. turer we would not escape the room en more time is needed to coach without talking about workplace them so that they are successful in challenges,” said PolymerOhio exec- their new jobs. But it’s important, be- utive director Bruce Fawcett. “So we cause even a single failure could hurt started to think about what novel ap- her program with an employer or proaches could we take? Because the with industry in general, she said. standard approaches weren’t work- “e program is not something ing out for folks.” that’s quick. A lot of people think that Fawcett said he’s already found at once you get a restored citizen to least three Northeast Ohio plastics work, everything’s OK. at’s a myth. companies interested in learning at’s actually when things often go about the program. Because of the wrong in their world,” Miller said. nature of it, participating companies “at rst month or month and a half usually remain anonymous, he said. is just a very crucial time in their life.” Miller said she hopes TAPP does Former prisoners often have a well enough for her to hire a full-time short honeymoon period, where they associate to manage it in Northeast stay with family and friends, with all Ohio. In the meantime, she said she’s their needs taken care of. After that, more con dent than ever that the they often have to quickly take on program is gaining traction and will challenges such as housing, child meet its goals for 2017. care, transportation and other criti- “I think we’ll place a lot more than cal needs. Add to that the fact that 25 people this year. I just signed ve many of them have not held jobs be- last week,” she said. CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 21 AKRON Former Kent courthouse to get new life By RICHARD WEINER [email protected]

Kent attorney John Flynn, who helped save the old Kent train station in the early 1980s, has purchased an- other landmark building in the city. e old Portage County Municipal Courthouse on South Water Street, which was originally the Kent post oce building, will be converted into oce space, Flynn said. “ is is a beautiful, iconic build- ing, the centerpiece of Kent, and I didn’t want to see it torn down or turned into something it shouldn’t be,” he said. e city of Kent had called for devel- opment proposals for the building after it was abandoned two years ago, when Kent attorney John Flynn the new courthouse, housing the Kent purchased the courthouse and will branch of the Portage County Munici- move his firm’s o ces to the pal Court, opened on Main Street. building after it’s renovated. e city acquired the Water Street building as a part of a land swap with son Memorial Hospital Foundation Portage County in a deal for the new Built in the 1930s, the old courthouse building in Kent initially was a post o ce. (Shane Wynn for Crain’s) for over two decades, Flynn is happy site. to play his part in the current revital- Another proposal for the site came “It’s very good news ization of downtown Kent. from Fairmount Properties, accord- “Downtown Kent prides itself on ing to Kent economic development for downtown Kent smaller ‘mom and pop’ business director Tom Wilke. owners who are chasing their at proposal involved purchasing that we’ve got a dreams, which is exactly how Mr. Fly- the courthouse for Flynn’s rm in ex- nn built his law business,” said Ruller. change for land Flynn owned on the path forward to get “We’re delighted to see that he’s same block, where Fairmount wanted not done yet and is looking to make to construct a mixed-use building. the historic court yet another contribution to the eco- Council turned down that propos- property back in nomic vitality of his hometown.” al, Wilke said, because of a lower pur- As Kent continues to transform, chase price for the courthouse and business.” Flynn likes what he sees in his old concerns over parking at the pro- hometown. posed mixed-use site. — David Ruller, Kent city manager “Kent always had potential, but Several others also expressed in- very few people recognized what to terest in the site to the city but e city will clean out the building, do about it,” he said. “From the 1980s stopped short of making a formal of- then the walls that were put up when on, gradually, people started to real- fer, he added. the post oce was converted to the ize the potential and now they are en Flynn decided a couple of courthouse will come down, leaving The interior of the courthouse will be made into o ces. running with it.” months ago to put in an oer and whatever original interior is left. is plan for the property. includes a secret catwalk that the e purchase price of the building postmaster used to walk along to was $435,000, Flynn said, and he esti- watch his workers, Flynn said. mates that he will put in upward of After that, Flynn said that he will $700,000 to renovate it into an oce have to see what needs to be done to Find a bank you feel good about building. make the building into oce space. While a contractor has yet to be is is the third development proj- chosen, Flynn said DS Architecture ect in downtown Kent for Flynn. A switch for the will be working on the project, which Kent native whose father owned a gas he hopes to begin sometime this station on South Water Street, Flynn & right reasons. summer. has been dedicated to the preserva- “It’s very good news for downtown tion of downtown Kent. Kent that we’ve got a path forward to He built his current building in get the historic court property back 1980, saying that it was the “rst new $ * in business,” said Kent city manager building built in downtown Kent in Get 200 when you David Ruller. 25 years.” “Mr. Flynn has the kind of track re- e following year, Flynn helped open a new checking account. cord for quality redevelopment that with the old Kent train station, which (city) council was hoping for when had fallen into disrepair. en a board they asked us to put the property up member of the Kent Historical Soci- Visit your local Akron branch or for sale, so it should be a great t.” ety, Flynn and several other investors Flynn said that about half of the worked to attract a developer and call 330.664.2911 to learn more. new space — the courthouse has then purchased the former station for *This offer is available to new checking account households opened in person at our Akron S&T Bank office located at 491 North Cleveland Massillon about 6,000 square feet on the main the historical society for $24,000. Road Akron, OH 44333 and limited to one per household. Offer applies to new consumer checking accounts (Checking & Simple, Checking & More, level and 5,000 square feet on the It was converted into the Puer- Checking & More with Interest and Checking & Four Stars only). Offer cannot be combined with any other checking offer and is subject to change or termination without notice. basement level — will go to his rm, belly Restaurant in 1981. ( e Puer- To qualify for the offer, the new checking account must be opened with a minimum opening balance of $50 between 2/1/2017 and 4/28/2017 and the Flynn, Keith & Flynn, currently locat- belly closed at the start of the year following conditions must be met by June 30, 2017: (a) qualifying Direct Deposit(s) must be received and (b) at least 10 S&T Bank Visa Debit card ed down the street at 250 S. Water and the building was just sold, but a purchases (posted and cleared) must be made. Your checking account must remain open and in good standing (balance greater than $5) in order to receive the incentive, which will be credited to the eligible account 7/15/2017. Once all conditions have been met the credit will be identified as "$200" on Street in a building built and owned new restaurant is coming in). your monthly statement. by the rm. Flynn’s history with the city was A qualifying Direct Deposit is defined as a recurring Direct Deposit of a paycheck, pension, Social Security or other regular monthly income Flynn and his partner will keep certainly a part of his winning bid for electronically deposited by an employer or an outside agency into the specific account you opened between 2/1-4/28/2017. The total amount of all that building, where other tenants the old courthouse. qualifying Direct Deposits credited to your checking account must be at least $500. Credit card cash advance transfers, transfers from one account to will remain. e rest of the restored “John’s prior experience with the another or deposits made at a branch or ATM do not qualify as Qualifying Direct Deposits. courthouse building will be open for Kent Historical Society in obtaining A qualifying debit card purchase is defined as any debit card purchase made at point of sale using your signature or PIN, or a purchase made oce rental. and preserving the train station that electronically or online using your debit card number, including recurring payments. “We believe that John’s plans to re- became the Puerbelly Restaurant New account will not be eligible for offer if any signer has signing authority on an existing S&T Bank consumer checking account or has closed an account within the past 12 months, or has been paid a promotional premium in the past 12 months. If multiple accounts are opened with the same develop the building as Class A oce will serve him well as he begins to signers, only one account will be eligible for the premium. For this offer, signing authority will be defined by the customer name(s) and social security space is the highest and best use for the plan the rehabilitation and resto- number(s) registered on the account. Offer may be extended, modified or discontinued at any time and may vary by market. The value of the reward may be reported on Internal Revenue Service (IRS) Form 1099, and may be considered taxable income to you. Please consult your tax advisor regarding building,” said Wilke, “and we will wel- ration of the building that was origi- your specific situation. come the additional professionals that nally constructed in the 1930s as a Checking & More with Interest account rate is accurate as of 2/1/2017. Annual Percentage Yield (APY) for this interest bearing account is 0.15% will be attracted to our downtown.” post oce,” said Wilke. APY. Rates and APYs may vary and may change after account opening. Fees could reduce earnings. To determine if these rates have changed, call 800.325.2265. Rates on variable rate accounts may change after account opening. Refer to S&T’s Deposit Account & Agreement Disclosures for other Flynn said that he will seek state And as a long time “city father,” important terms and conditions. and federal historic tax credits to help having served on both the school MEMBER FDIC pay for the restoration of the building. board and as a trustee of the Robin- MARCH 13, 2017 PAGE 17 PAGE 22 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS CRAIN'S CLEVELAND BUSINESS μ μ

As it was with churches, Daily be- BOXCAST lieves BoxCast is ahead of the curve CONTINUED FROM PAGE 1 when it comes to working with mu- nicipalities. Local governments such “ eir purpose was to monetize as Avon Lake and Brook Park use the onsite experience,” Daily said of BoxCast for their live streams. Brook Veritix, a digital ticketing company Park, Daily said, draws an audience that got its start as the Dan Gil- of more than 1,000. bert-owned Flash Seats in 2006. “We have literally thousands of “What is it that BoxCast does? We those little boxes out there in the monetize the osite experience. marketplace,” he added. ere are so many interconnects.” One is at MRI Software, a real es- Gerace said when he talks to entre- tate software company in Solon. preneurs such as Daily, he gives them Terry Keller, MRI Software’s se- a couple options. nior director of information tech- “I say, ‘You have a choice. If I’m nology, said the company started not an investor, but a mentor, I can using BoxCast’s services in 2016, advise you on anything. But if I’m when it streamed its annual inter- an investor, you can’t come to me national user convention. The for advice on how to deal with the broadcast was available on MRI’s board and investors, because I have company intranet, where its 700- the rights and obligations of an in- plus employees could watch it live vestor,’ ” Gerace said. or see it on demand after it con- So for now, he’s an adviser with cluded. “incentive equity” as part of his board And when a client couldn’t make membership. But Gerace said he’ll it to a big product management look to invest in BoxCast’s next - meeting, MRI Software streamed nancing round. the gathering so everyone was in- Steve Biegacki — the president cluded. and CEO of Kramer Electronics USA, “ ey took something that’s com- and a longtime former Rockwell Au- plicated, broadcasting live events, tomation executive — is another in- BoxCast’s plug-and-play device can hook up to video cameras and iOS devices. (Contributed photo) and made it extremely easy to do,” triguing addition to BoxCast’s board Keller said. “I love them. I keep try- of directors. In a way, the company has already e TeleProductions department’s ing to nd more ways to utilize The prominent executives are arrived. most popular BoxCast broadcast is them.” lending a hand as BoxCast contin- Daily estimates that BoxCast’s graduation, which Forbes says draws Live broadcasts — thanks to Face- ues to own a chunk of the church equipment is used in about 13% of a live audience in the hundreds. e book Live, Periscope and other plat- market, a segment that was the site the college athletics market, and that Kent State School of Podiatry even forms — have never been easier, and of the company’s first online the company’s technology is used for broadcasts its lectures on the plat- cheaper. at’s a good thing, believe broadcast in 2008. BoxCast also is “10 times as many” live broadcasts as form. it or not, Daily said. strengthening its position in ESPN. “It’s very, very easy to use,” “Everyone has this idea that sports, especially with colleges ose, of course, are on a much Forbes said of the BoxCaster, a box (Facebook Live is) just gonna eat and universities, and sees a huge smaller scale, though the dollars still about the size of smart phone that BoxCast’s lunch because that’s a free opportunity in selling its stream- add up. Daily said more than 1,000 hooks up to a video camera and al- product, but it’s just the opposite. ing services to municipalities and fans signed up — at $9.95 a pop — for lows users to stream big games — It’s created such a market for what businesses. recent live broadcasts of the East or in the case of a reporter’s mid- we do. It’s just accelerating people’s BoxCast, in the words of Daily, its Coast Athletic Conference hockey week visit to BoxCast, a Kent State interest in really thinking this is pos- president, is “legit, bringing in real tournament. lecture on feet. sible, and these brands can’t leave it money and real customers.” BoxCast has deals with Baldwin to Facebook.” “Everyone has this Wallace, Case Western Reserve (the ‘Accelerating’ interest Daily said BoxCast has better ‘Easy to use’ alma mater of Daily and co-founders equipment and enhanced support, idea that (Facebook Justin Hartman, Ron Harper and Joel Daily says the college sports mar- which has helped it raise more than Late next month, BoxCast will un- Live is) going to Helbling) and John Carroll universi- ket is getting “largely saturated,” and $4 million since its start. And more veil its latest product at the National ties, plus Ursuline College, seven of that his company was “actually late to funding is on the way — a substantial Association of Broadcasters’ four- eat BoxCast’s lunch the 10 members of the Ohio Athletic the game” in that area. amount, he said. day show in Las Vegas. Daily said he Conference and Kent State. Still, BoxCast has done well in the “I still contend that 90% of the can’t yet reveal what the new tech- because that’s a e latter’s TeleProductions de- eld. population isn’t streaming any- nology will be, though he hints to a partment used BoxCast’s platform e company has fared even better thing,” Daily said. visitor that it will be signicantly free product, but to stream last fall’s Mid-American with churches, a business segment “ ese are brands that have the more powerful than the company’s Conference eld hockey tourna- that — nine years after Daily and his most to gain from it, and they’re not current collection of plug-and-play it’s just the ment, and engineer Jason Forbes buddies provided the equipment for even doing it. But once they get a devices, streaming platforms and opposite.” said the athletic department will a live broadcast of a Westlake funeral load of how easy this is, how possi- apps. join the rest of the university in us- home service — is “in the middle of ble it is and how much they get from “It’s a nice coming-out party for — Gordon Daily, BoxCast president ing BoxCast’s equipment in full the growth stage,” the company pres- it, it’s a foregone conclusion they’ll us,” Daily said. and co-founder force this fall. ident said. try it.” 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

AUCTIONS BUSINESS SERVICES BUSINESSES FOR SALE List your commercial, C.W. JENNINGS INDUSTRIAL EXCHANGE THINKING OF SELLING? Global Industrial Consulting FREE MARKET ANALYSIS executive property, Construction • Acquisitions No Upfront Fees Exporting • Financing See our listings at: www.empirebusinesses.com (855) 707-1944 [email protected] industrial or retail space here! 440-461-2202 INVESTMENT Crain’s Cleveland Business’ OPPORTUNITIES FLYNN For daily on-line updates, classi eds will help INVESTMENT OPPORTUNITY ENVIRONMENTAL sign up at An exciting new web site for Baby UST REMOVALS • REMEDIATION you ll that space. Boomers providing pertinent DUE DILIGENCE INVESTIGATIONS CrainsCleveland.com/Daily information on a wide range of (800) 690-9409 Boomer interests. $20-25K range. THE LIST For more information Contact Lynn Calcaterra at 216-771-5276 Employee Benefit Firm Send us your ad via e-mail... [email protected] Please call 330-536-1470 CRAIN’S CLEVELAND BUSINESS | MARCH 13 - 19, 2017 | PAGE 23 Source Lunch Yvette Ittu President, Cleveland Development Advisors sider Yve e I u is the long-serving president of Cleveland Development Advisors, a small organization with a big mission and nimble checkbook that is a key enabler of intel Cleveland’s rebirth. CDA, as Cleveland Development inMARKETING, ADVERTISING & EVENTS INSIGHTS. Advisors shortens its name, was launched in 1989 to raise funds from corporate sources to invest in catalytic economic real estate development projects that traditional lenders eschewed, like pioneering in downtown housing. The projects this aliate of Greater Cleveland Partnership helps have grown in size along with CDA, as has its mission to embrace education and job Today’s Tip: creation. CDA has invested more than $320 million in 120 projects, resulting in 6 million A webinar is the perfect square feet of commercial space and 5,300 new housing units. Its eorts have leveraged way to get your voice heard, $2.9 billion in development. — Stan Bullard share your knowledge and Five things What is your elevator speech for housing but retail and other CDA? community amenities, including a network, without leaving How do you kick back? CDA provides a capital source that new home for the Music Last year, I started rowing with the is really unique around the Settlement. the comfort of your office. Western Reserve Rowing Association country. CDA has been able to in the Flats. It’s a great way to get capitalize local private sector What do you see as the next outdoors and enjoy the Cuyahoga funds and combine them with challenge in Cleveland’s River. other private and public sector economic development? funds to fill the gap in ground- Our community has embraced the What is your favorite place in breaking real estate projects that notion of the public-private Northeast Ohio? might otherwise not be completed partnership to get a lot of real The Cleveland Metroparks — any with traditional financial sources. estate development done in part of it. For CDA, a catalytic project is one Cleveland. Cleveland projects often that, upon completion, is likely to use multiple layers of funding, Do you have the desire to reach a large What was the destination of attract additional development including federal and state tax your last trip? and/or improve the general credits, local financing programs, as audience, but don’t necessarily want The United Arab Emirates. We visited character and vitality of Greater well as CDA direct lending, to close to put together an event? A webinar is a friend who lives in Abu Dhabi. Cleveland. CDA can’t do anything the gap. We can’t take those alone. But the sources of funding financing tools for granted. It’s not the perfect solution. The online vehicle What are you reading? it brings to the table can easy to do real estate development also can serve as a great form of lead I like to read about things associated sometimes make the difference in a legacy community like with what I’m doing. There’s Rags to between a project being done and Cleveland. We need to make sure generation since attendees register Riches about Abu Dhabi, and The not done. These projects can these sources continue to be made and share contact information. Boys in the Boat about the American include developer initiated available to communities like crew team at the 1936 Berlin projects, business development Cleveland. Olympics. projects as well as nonprofit- sponsored real estate projects. How have you seen real estate What is your favorite movie? development change here while “It’s a Wonderful Life” Where does CDA invest its funds? you have been at CDA? Our original charge was to create an What’s excited me is that we are Michelle Sustar investment fund with support from starting to see some real estate Greater Cleveland corporations to development without all these Integrated Marketing Manager serve as patient capital to help spur layers of financing. We’re starting to Crain’s Cleveland Business catalytic real estate developments see some downtown oce building in the city of Cleveland. No other renovations and conversion to community has done it quite this apartments and housing in Tremont way. With the advent of allocations and Ohio City get completed with of Federal New Markets Tax Credits, financing solely from traditional we have been able to expand our sources. We still need to work on scope beyond the City of Cleveland funding for larger scale projects, as to qualified areas of Cuyahoga well as neighborhood projects, but How Crain’s can work for you: County. For example, CDA recently we are starting to see the benefits invested in the Lincoln Electric from working on catalytic Welding Technology Center under development projects. CRAIN’S WEBINAR PARTNERSHIP construction in Euclid. The center will focus on training welding What career path positions you educators. for a job running a nonprofit that Crain’s not only will work with your Lunch spot is a funder of last resort for company to develop topics and promotions Yours Truly Cleveland What are a few of the more challenging realty projects? that attract your desired audience, but it Playhouse Square recognizable projects that CDA After graduating from college and Halle Building, 1228 Euclid Avenue has invested in over the past becoming a certified public will moderate the presentation and Q&A. year? accountant, my goal was to be The meal CDA has made investments in two bond counsel. I was working on Through this opportunity, Crain’s will One had The Envelope, a pita filled of the largest new construction bond transactions at Calfee, Halter provide a high-impact package, including with spinach, tomato, cucumber, housing developments in recent & Griswold when this opportunity muenster and hummus. The other: history — the One University Circle came up. How can you refuse a print and online advertising and email Bualo chicken wrap with sweet project, which will bring a 20-story, chance to make an impact like this blasts. potato fries. Drinks: one soda and 280-unit high rise apartment on your hometown? This position one cranberry juice. building to University Circle; and incorporates several aspects of Interested in booking your webinar today? the Edison at Gordon Square, which my background. My public sector The vibe will bring over 300 units of housing experience in finance and Email advertising director Nicole Comfort food for downtown workers to the Detroit Shoreway accounting at the city of Mastrangelo at [email protected]. dining with colleagues. Relics of the neighborhood. CDA also made a Cleveland, as well as serving as old department store give it significant investment in the finance director for the city of authenticity. project known as W25D, the Lakewood, also helped me mixed-use project currently under understand the public sector The bill construction on 25th and Detroit perspective relative to economic $ 26.57 with tip Avenue that will bring not only development. watch more here BDBLAW.COM/reimagine