20151221-NEWS--1-NAT-CCI-CL_-- 12/18/2015 1:36 PM Page 1

DECEMBER 21-27, 2015 VOL. 36, NO. 51 CLEVELAND BUSINESS

Big-time planning dominated in 2015 Page 13

35 years of news Entire contents © 2015 by Crain Communications Inc. & newsmakers Pages 14-18 Lisa Lorek 20151221-NEWS--2-NAT-CCI-CL_-- 12/18/2015 11:29 AM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY

52 TIPS FOR YOUR BUSINESS Tip #52 - Source a Supply of Interns

There are a number of reasons your [OLYPNO[Z[HɈPUWSHJL/PYPUNPU[LYUZOPWZPZ business should place a high priority on PTWVY[HU[[VPKLU[PM`[OLYPNO[Z[HɈ[VILVU internships. Besides the fact that your the right bus and in the right seat. December 21 company is playing an integral part in training future employees, you are also Internship program structure developing your own pipeline of potential Internships are typically part-time By The Numbers future employees. According to a report throughout the year and are short-term from the Northeast Ohio Council on Higher assignments. Employers provide us with Education, 53% of employers increased feedback during our site visits and consistently their number of student interns in 2014, are seeking students with strong soft skills compared to just 35% who did so in 2013. and business acumen to work in a business 1;5L\ɈLY But what’s the best way to source environment. The technical knowledge is Cuyahoga Community College and utilize these students? First, in my important and they are willing to train students professional experiences as a former VU[OLPYWYVJLZZLZ[VILLɈLJ[P]L usually report to the owner or senior leader YLJY\P[LY [OL ILZ[ ^H` [V ÄUK H Z\WWS` VM Highly successful internship programs in the organization who will train and prep interns is through developing partnerships have a thorough job description that the student to make an immediate impact. with local colleges or universities. Contact includes productive work assignments Students seeking internships are encouraged your local career center to understand related to department and organizational to explore working for organizations that [OL WYVNYHTZ VɈLYLK HUK [OLPY WYVJLZZ [V goals. Students are eager to practice what can provide them an opportunity to learn identify interns. At Cuyahoga Community they have learned in the classroom and regardless of the size in organization. Our College, we are prepared to meet you at your apply it to their internship. students who have participated in a co- VɉJL [V \UKLYZ[HUK `V\Y [HSLU[ HJX\PZP[PVU Employers who create a learning op position routinely participate in College plans and how we can supply you with talent environment for students and provide the career center events in order to share their through our internship program with resumes opportunity to use their skills, knowledge experiences with other students and to 44% of students actively seeking internships. and abilities on projects creates a sense of advise them that they, too, can receive a The percentage of employers Hiring student interns should be similar ownership to make the internship experience Z\JJLZZM\SHUKX\HSP[`PU[LYUZOPWL_WLYPLUJL to the process and assessment of hiring a success. working for any size organization. using their internship program WYVMLZZPVUHSZ[HɈ[V`V\YVYNHUPaH[PVU4VZ[ According to the National Association The feedback we receive from our students as a proving ground for hiring LTWSV`LYZ PUJS\KL T\S[PWSL Z[HɈ TLTILYZ of Colleges and Employers’ 2015 Co-op has been overwhelmingly supportive of the potential future employees. from the department and cross-functional survey, most of an intern’s day will be spent on-boarding, guidance and relationships teams to help represent their area in the doing analytical/problem-solving followed, ^P[O [OLPY Z\WLY]PZVY :VTL LTWSV`LYZ VɈLY SOURCE: NORTHEAST OHIO COUNCIL selection process. Using this collaborative in order, by: a mentoring program to keep students ON HIGHER EDUCATION approach will provide a strong assessment ࠮ project management; engaged and identify areas of concern before of the student intern’s background and ࠮ communications; they become an issue. Other successful support from the department. Employers ࠮ logistics; experiences from our students indicate a high need to identify the technical and soft ࠮ clerical tasks; and level of support and commitment from the skills necessary to be successful in their ࠮ nonessential functions. team they worked with during the internship. Connection Calendar KLWHY[TLU[HUKOV^[OH[Z[\KLU[^V\SKÄ[ in their organizational culture. Jim Collins, Small business advantage -VYTVYLPUMVYTH[PVUJVU[HJ[1;5L\ɈLY A GLIMPSE INSIDE THE author of Good to Great, concludes before The advantage of being a small business Director, Employer Relations, 10,000 SMALL BUSINESSES an organization takes their performance can allow students to get more exposure ,HZ[LYU*HTW\ZH[QVUUL\ɈLY'[YPJLK\ PROGRAM to the next level to be truly great you need and experience in business operations. They VY   Interested in learning more about the Goldman Sachs 10,000 Small Businesses program or thinking about applying? This is an opportunity for you to get BIG IDEAS an inside peek at what the program is about. You will learn about the program, meet lead faculty member Larry Polena, participate in a mini session and 5 Ways to Boost Cybersecurity at Your Firm engage with a panel of local small business owners who graduated from the program. By Alicia Hoisington JANUARY 14, 2016 !(4¶74 According to Kaspersky Lab’s “Damage ࠮ Establish best practices for payment Tri-C Advanced Technology Control: The Cost of Security Breaches” report, cards: Work with banks or card 90% of businesses in 2015 experienced a processors to ensure you’re using trusted Training Center, Cleveland security incident, and 46% of businesses and validated tools as well as anti-fraud lost sensitive data because of an internal ZLY]PJLZ 0M `V\ OH]LU»[ THKL [OL ,4= or external security threat. According to the shift yet, get up to speed on what you DRIVING CASH FLOW FROM ENERGY EFFICIENCY report, small businesses spend an average of ULLK[VKV[V\WKH[L`V\YLX\PWTLU[ $38,000 in direct spend to recover from the PROJECTS WEBINAR attack. Indirect costs from a breach on a small ࠮ Back up important data and information: An increasing number of small businesses are implementing upgrades that improve energy business can cost an additional $8,000. Regularly back up data on all your LɉJPLUJ`YLK\JL^HZ[LHUKTPUPTPaL[OL “Small businesses are particularly computers. If possible, back up your data impact on the environment. Business owners vulnerable to cybersecurity threats and automatically or at least weekly. Store the know that lower energy use translates into crime,” says Gil Goldberg, district director JVWPLZLP[OLYVɈZP[LVYVU[OLJSV\K PTWYV]LKWYVÄ[HIPSP[`HUKJHZOÅV^HUK[OH[ of the Small Business Association Cleveland investments in energy conservation measures can +PZ[YPJ[6ɉJL¸.P]LU[OLPYYVSLPU[OLUH[PVU»Z ࠮ Protect against viruses, spyware ࠮ Control physical access to computers HKKZPNUPÄJHU[]HS\L[VI\ZPULZZHZZL[Z supply chain and economy, combined with and other malicious code: Each of and networks: For instance, laptops can Attend this webinar and learn how to evaluate your fewer resources than their larger counterparts your business’s computers should be be easy targets for theft, or can easily be facility, identify rebates and incentives, coordinate to secure their information, systems and LX\PWWLK ^P[O HU[P]PY\Z ZVM[^HYL HZ ^LSS lost. Ensure laptops are locked when not with the installer(s) and determine the right debt networks, small employers are an attractive as antispyware. These should be updated in use. ÄUHUJPUNVW[PVUMVY`V\YWYVQLJ[ target for cybercriminals.” regularly. JANUARY 27, 2016 Goldberg says now is the time to take stock 11-11:45 (4 of your business’s cybersecurity health by ࠮ Use strong passwords and change For more on this topic, securing your information, identifying risk and them often: Consider implementing ILVU[OLSVVRV\[MVY[OLYLMYLZOLK Cost: FREE learning best practices for guarding against T\S[PMHJ[VY H\[OLU[PJH[PVU [OH[ YLX\PYLZ ]LYZPVUVM[OL*6:,

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PAGE 4 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS FOR SALE Commercial docket’s 35,&(5('8&7,21 %$9$5,$3$5.:$<7:,16%85* backers keep up fight Specialty business court isn’t ‘dead,’ but its future is murky

BY JEREMY NOBILE Lawyers simply want to see the And it couldn’t actually be called a docket restored, and they’re pitch- commercial docket. [email protected] ing solutions they think judges could In that case, there would be no di- @JeremyNobile be open to. rect oversight by the chief justice. Meanwhile, exactly what judges It’s not an uncommon process, as Next month will mark a year since want from the docket remains that’s the way most other specialty ‡ 6)ZLWK6)ODERIÀFH Cuyahoga County Common Pleas murky at this point. Russo declined courts are operated, but it would be  VLWXDWHGRQDFUHV Visit TerryCoyne.com Court judges disbanded the general- to speak to what judges desire con- a special solution in this case. ly popular commercial docket, but sidering where the process current- Hamilton and Lucas counties are ‡ IRRWFOHDUZLWKGRFNV Or call Terry at 216.453.3001 the movement to restore the special- ly stands. the only ones in Ohio right now with ‡ ([SDQGDEOHE\6) ty business court continues. “We are still looking at what might true commercial dockets. “It may appear to be dormant, but be feasible and necessary,” Russo There are some potential down- ‡ (DV\DFFHVVWR,DQG, it’s not dead,” said Bruce Hearey, for- said. “We have some thoughts … sides to taking that alternative route, mer president of the Cleveland Met- But we are waiting to see what the particularly in terms of case flow. 1350 Euclid Ave., Suite 300 ropolitan Bar Association who has bar recommends.” Bret Crow, director of communi- Cleveland, Ohio 44115 been leading the committee of litiga- That proposal-writing process has cations for the Supreme Court of tors working to see the docket re- been slower than expected as mem- Ohio, explained that under the high stored. “People should not interpret bers of that subcommittee have been court’s commercial docket, a judge a lack of news as a lack of activity.” busy in court and because “there are on the docket assigned a commer- Attorneys are currently finishing a a lot of cooks in the kitchen,” said cial dispute moves another non- proposal for changes to the docket Phillip Ciano, principal at Ciano & business case to someone else to FREE GIFT FOR NEW CUSTOMERS they expect to submit to judges be- Goldwasser who is leading that pro- keep the total workload in check. fore year’s end, Hearey said. He de- posal subcommittee. The timeline for dispositive motions clined to speak to what changes The last 11 months have been a is also automatically reduced. Q Banners, Posters, Vehicle Wraps could be in there since the proposal quiet back-and-forth between The Supreme Court, naturally, Wall Graphics and other Signage isn’t completed yet. judges who seem to want more au- promotes its model to encourage Q Since 1999 Direct Mail Marketing A commercial docket’s intent is to tonomy over how the commercial uniformity across the state. So the Q Website Creation resolve business-to-business dis- docket would operate, including the court itself and Chief Justice Mau- putes faster and establish both con- or Enhancement selection of judges, and lawyers who reen O’Connor have been paying at- sistency in the legal process and ex- never wanted the docket to go away. tention to what happens next in Q Digital Publications pertise among judges who would Commercial litigators generally ap- Cleveland. The high court, however, “The Name Q Mobile Friendly Apps and hear those kinds of cases, which in- preciated everything the docket set declined to comment on its position Website Conversions clude liquidations, trade-secret dis- out to do, which is why they contin- regarding what the local common You Can Trust!” putes, noncompete contracts and ue to pursue the issue, Ciano said. pleas court does simply because it’s Q Free Online Company Store shareholder disagreements. “I think our main objective is to “premature,” Crow said. for Ordering of Business Cards “FLEXIBLE. ONE SOURCE. Hearey was president of the create a cooperative procedural Joe Roman, CEO of the Greater (25 employees or over) Cleveland bar when the docket was process that makes sense for the Cleveland Partnership, has praised UNLIMITED RESOURCES.” Q Promotional Products eliminated in January, a decision business owners in Cuyahoga Coun- the docket as a positive for the busi- Q Print Services that followed the disqualification of ty, that makes sense for practitioners ness community. Judge Cassandra Collier-Williams and makes sense for the judiciary,” And even though it’s been a year from the docket by the Ohio he said. without the commercial docket, Supreme Court’s Commercial Dock- which was formally adopted in Cuya- “Call Joe Thomas Group et Subcommittee, which affirms the hoga County in 2013 following a 440-268-0881 appointment of judges to the spe- Jumping through hoops three-year pilot program, Ciano said That’s me!” A Certified Minority-Owned Business, cialty court in a process unique to Ultimately, there are only three it’s not been enough time to deter- independently owned & operated the business court. possible outcomes. mine if it’s truly had a measurably Hearey intends to keep involved The first two are intuitive. Either negative impact on clients or busi- www.ProformaJoeThomasGroup.com | www.JoeThomasGroup.com with the initiative until the issue is the docket stays dead and all busi- ness for practitioners. settled. ness-to-business cases continue to But that doesn’t diminish the Proforma Joe Thomas Group is a franchisee of Proforma and is not affiliated with any other Proforma franchisees Judges will review potential solu- be assigned to the full bench of 34 lawyers’ efforts, he said. tions with the attorneys once the lat- attorneys, or it’s restored under the “We want to craft a compromise ter group submits its suggestions. parameters of the Supreme Court. that makes sense and works for The next steps will be considered The county court’s other option is everybody,” Ciano said. from there. to create what is essentially a special “Our hope would be (to resolve Administrative and presiding track for business cases. this) in 2016, but there will be sever- Judge John J. Russo said there’s no That technically wouldn’t be con- al hoops to jump through, and this is WEATHERHEAD EXECUTIVE EDUCATION hard timeline imposed anywhere in sidered a commercial docket as de- the first step to getting to something the process, though. fined by Ohio’s high court, though. we all agree on at a local level.”

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PAGE 6 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS

For Lease - Up to 8,000 SF Retail/Offi ce Space Vibrant Downtown/University Location LeBron James Family I PROMISE program looks to bolster education and, in doing

BY JENNIFER CONN see families who every day must dents on good test scores and other worry about just existing,” Lieberth achievements, or remind them to go [email protected] said. to class and do the work if they’ve “Many of these students don’t fallen behind. When the Cleveland Cavaliers have a caretaker at home to encour- A recent big announcement re- drafted LeBron James in 2003, he age them to succeed. Many of them vealed a partnership with the Uni- promised to never forget where he don’t have food at home.” versity of Akron, which guarantees a came from. And if you judge by his So, in 2011, the foundation’s four-year college scholarship to the foundation’s increasing involve- Bikeathon was replaced with Wheels university for every student in the ment in the community, it appears for Education, a robust program de- Akron I PROMISE Network, begin- 2020 Euclid Avenue, Cleveland, OH he’s honoring that promise. signed to keep kids in school, Camp- ning with those now in the seventh The LeBron James Family Foun- bell said. grade. • Up to 8,000 SF space with 40’ frontage • Adjacent to newly constructed dation has supported Akron’s most Taking away the financial barrier 100,000 SF health sciences building • District hosts 100,000 weekly visitors, underserved students since its in- is vital to this population’s success. including 17,000 college students and • On Health Line & CSU student ception in 2004 and now is increas- “Many times youngsters give up 19,000 employees transportation stop ing its scope with its recently on college very early in their acade- launched I PROMISE initiative. mic career because they just don’t Julie Sabroff or G.F. Coyle III, SIOR In 2004, James was only 19 years “Many times see it as a possibility,” said Lawrence 216.839.2029 old and still in his first year in the Burns, vice president of advance- HannaCRE.com NBA. youngsters ment at the University of Akron. “So The foundation started with the we are trying, with the foundation, basics: During the first Bikeathon in to erase that loss of hope.” 2005, the LJFF awarded new bicycles give up on An estimated 2,300 LJFF students to students who, alongside James, (1,100 current students plus the next rode the new bikes around Akron. college very four classes that enter the program) The fledgling foundation also are expected to receive the scholar- supported Akron’s after-school pro- early in their ships. Current tuition is about grams and athletics departments, $9,500 per year, which equates to a with James donating everything scholarship commitment of $38,000 from hot meals, laptop computers academic per student, or $87.4 million for and new uniforms, to a new arena at 2,300 students. his alma mater, St. Vincent-St. Mary career because According to Campbell, to qualify High School. for a scholarship, students must stay “He wholeheartedly believes he is in the I PROMISE Network and meet where he is today because of people they just don’t grade-point average requirements in this community,” said Michele and ACT scores, which are strict but Campbell, LJFF executive director. see it as a attainable. “His mother, his coaches and teach- They also must participate in ers, and the extended family that be- possibility. community service, which is heavily lieved in him when he was a child weighted as a requirement. helped him make right choices “This lets the kids know they have when he had options to make the So we are to work hard, but they can do it,” wrong choices. He’s never forgotten Campbell said. “The goal is for them that.” trying, with to eventually give back to this com- Even when James went to the Mi- munity.” ami Heat in 2010, the same year A scholarship fund has been cre- Campbell took the helm of the LJFF, the foundation, ated at the University of Akron for he remained engaged, she said. community contributions. Initia- “LeBron James never forgot and to erase that tives with the Cleveland Cavaliers never stopped giving to those chil- will help raise awareness for the dren and those families when he loss of hope.” fund throughout the Cavs season, went to Miami,” Campbell said. Burns said. “The local media just stopped re- The first class of Wheels for Edu- porting on it.” — Lawrence Burns cation students will graduate high VP of advancement, school in 2021. University of Akron In keeping with James’ belief in Earned, not given the power of community involve- Today, with James back in town ment, the LJFF has established part- just over a year, the foundation’s nerships with many area organiza- work has evolved and grown, and is tions. based on a long-game strategy that The LJFF touts the notion of re- One such entity is Akron-based reflects the belief in the power of wards being “earned, not given.” Power Media, which handles the community. Each year, educators select roughly foundation’s promotional and Through local partnerships, the 200 at-risk third-grade students branding materials. LJFF has developed a multitiered ed- who, along with a caregiver, must at- Power Media has designed every- ucation program designed to offer tend a two-week tech camp to qual- thing from signage for Michelle lasting benefits for Akron’s highest- ify for Wheels for Education. Obama’s recent appearance with risk students, their families and the Once accepted, students receive James at the University of Akron’s community. support and incentives as long as Rhodes Arena, to creating a 5-foot The foundation’s main focus is to they stay in the program and work copy of Dr. Seuss’s book “Oh the change Akron’s education numbers, toward graduation. Places You’ll Go!” that James read to which aren’t good. When they enter sixth grade, students. The company also deco- In Akron’s 2011-12 school year re- they’re moved into the “Akron I rated the tree the foundation has do- port card, the district’s four-year PROMISE Network,” which has nated for the past three years to graduation rate was 75.3% — well “cooler” interventions geared for Akron Children’s Hospital Holiday below Ohio’s 90% requirement. The older students to keep them moti- Tree Festival. district also fell below state require- vated through to graduation. Power Media president Jon Erisey ments in third-through-eighth grade Students in the program also are appreciates the trust that comes achievement levels in reading, math treated to fun events, which are with a LJFF partnership. and sciences. chaperoned by LJFF partners and “There are never orders to fol- According to retired Akron deputy advisory board members low,” he said. “There are visions to mayor Dave Lieberth, who serves on “Most kids would not have these share and plans to execute. They put one of three LJFF advisory boards, opportunities otherwise,” Lieberth their trust in us to make it happen, those scores are a result of Akron’s said. and it just changes the dynamic of poverty rate, which has been creep- Students also receive letters, video the relationship.” ing upward and today stands at messages and prerecorded calls of Power Media’s partnership with about 30%. support directly from James. the LJFF formed out of a competi- “It’s moving and heartrending to The robo calls congratulate stu- tor’s snafu. The night before the 20151221-NEWS--7-NAT-CCI-CL_-- 12/18/2015 11:23 AM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 7 Foundation sets long-term game plan

so, the community A team of representatives from Power Media and the LeBron James Family Foundation worked on 2009 Bikeathon, the foundation’s assembling this year’s tree. They are (front, left West Coast partner discovered it had to right) Nick Lopez, Stephanie Myers Bussan, printed incorrect information on Michele Campbell, Scotty Wemmer, Erika Mayer, one of the event’s most prominent Jon Erisey, (back, left to right) Beth Milkovich, banners. Power Media stepped in to Mike West, Joe Caruso, Bobby Slabaugh help. The following year, the Akron and Konstantine Howley. company was asked to partner with the foundation again. Cedar Point’s partnership with the LJFF also had unusual origins, said Jason McClure, Cedar Point vice president and general manager. One of the foundation’s biggest annual events, the I PROMISE Family Re- union held each August, took place this year at Cedar Point. During James’ free agency, the park had tweeted it would name a coaster after him if he returned to Cleveland. When James came back to the Cavs, the amusement park was prepared to keep its promise, but the LJFF declined. It wanted a partnership instead. “One of the foundation’s goals is to give people experiences, and at Cedar Point that’s what we do better than anybody,” McClure said. So in August, 6,000 I PROMISE students and families rolled up to the gates of Cedar Point for a day of fun, including rides, a picnic and a presentation, in which James un- veiled the scholarship program. “The best part was seeing the looks on those kids’ faces and their families,” McClure said. This year, Cedar Point auctioned SPOTLIGHT: POWER MEDIA off first-ride seats on its newest You don’t see a Christmas tree like this every day. coaster, the Rougarou, which were More than 40 hours of work and 150 plastic Coke bottles went into the purchased by LJFF partners for the LeBron James Family Foundation tree at this year’s Akron Children’s Hospital students. A similar program next Tree Festival. year will offer seats for the new Val- The theme was “We Are Family.” The Coke bottles that adorned the Ravn coaster. motorized, illuminated tree featured customized labels and etched designs. “A lot of the kids had never ridden Four oversized acrylic bottle caps etched with phrases, such as “We Are a coaster before,” McClure said. Family” and “Share a Coke With Akron,” topped the tree. “The foundation does a really nice Each year, the LJFF comes up with the theme and concept, according to a job of connecting people where their foundation spokeswoman, and Akron-based Power Media works to make it a strengths are so it benefits the kids.” reality. This year’s process included 15 hours of design work, 15 hours of building and preparing the individual elements and 10 hours for assembly. Hackathons spur new technologies With Ohio home to JP Morgan Chase & Co.’s second largest em- ployee population in the U.S., Chase is a LJFF partner with a vested inter- est in retaining tech talent. Chase recently provided a team of technology professionals to develop software to track the academic progress of the I PROMISE Network students as they advance toward their scholarship goals, said Lois Backon, head of corporate partner marketing at JPMorgan Chase. Additionally, Chase held hackathon-style events, teaming up college students, Chase employees and LJFF students to develop code for tools I PROMISE students can use to track their own progress through the program. At least 10 solid proto- types were developed during the events, she said. “There is a subtle call to action that these kids not only get put on this pathway for success with jobs, but that they come back and they perform those jobs in Akron or in Ohio and that this talent doesn’t leave the state,” Backon said. “If the talent stays, they end up also helping their community.” And between Wheels for Educa- tion and the I PROMISE Network, that’s the cycle the LJFF is working to

develop. PHOTOS BY SHANE WYNN 20151221-NEWS--8-NAT-CCI-CL_-- 12/18/2015 1:25 PM Page 1

PAGE 8 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS Pop-up biz puts convention-goers at ease

BY JAY MILLER In Tampa in 2012, the reception itself every four years, to run the del- vention Strategies LLC, ran the De- her committee is aware of GOP Con- was held at the waterfront headquar- egation’s activities in Cleveland. mocratic convention in Charlotte, vention Strategies and is “excited that [email protected] ters of the Junior League of Tampa, “They just took all the headaches N.C., and has reappeared in Philadel- the convention is providing people @millerjh and the reception and all of the out of planning the excursion for our phia for 2016. It’s run by Democrat- with the opportunity to be part of the week’s events and logistics all came delegation, including dealing with lo- ic political operatives. event and grow their businesses.” The leadership of the Kentucky Re- off without a hitch in large part gistics to and from convention sites,” “We just figured a lot people Cox and Catlin Layton, GOP Con- publican delegation is looking forward thanks to GOP Convention Strategies Robertson said. “It’s just a really nice wouldn’t know what they were doing vention Strategies’ director of Cleve- to the Republican National Conven- LLC, said Steve Robertson, who in service.” in St. Paul and Minneapolis because land operations, have rented office tion here in July. In addition to the ac- November ended an eight-year run GOP Convention Strategies can they’d never been there,” he said in space in the Hanna Building in Play- tual convention sessions, its contin- as the state party’s chairman. best be described as a “pop-up” busi- an interview in Crain’s office earlier house Square and will be hiring tem- gent of 200 Kentuckians — 46 In a telephone interview, Robert- ness, and Cleveland next summer will this month. “So we figured we’d try porary staff. Renee Dabbs, the firm’s delegates, 43 alternates as well as son said the party was so pleased mark its third run. It’s a kind of high- it. We did St. Paul in ’08 and that chief operating officer, said they are spouses and other guests — will be at- with the work the firm, a sort of trav- level concierge service that has served worked out pretty well, so we did it inventorying available event spaces tending a number of events, including eling road show, did in Tampa that he state delegations, corporations and again in 2012 and now we’re doing it and figuring out clients’ venue and its traditional Bluegrass Reception. hired the company, which recreates trade associations at Republican con- again.” transportation needs. ventions in Minneapolis-St. Paul in The split Republican-Democratic The firm will be fulfilling the needs 2008 and Tampa in 2012. strategy works because many clients of state delegations and corporate “We basically say, ‘You let us do are corporations that want presences clients who will be sponsoring many everything and we will make sure you at both conventions. of the 1,200 events likely to occur have a good time,’ ” said Matt Cox, convention week. GOP Convention Strategies’ Ohio- Cottington said the California del- based partner. A helping hand egation will bring 1,000 people and “We handle housing, transporta- For now, the firm is lining up delegation or corporate events for tion, event planning, event execution, clients and surveying the venue and that many people might mean build- restaurant reservations, I mean the hospitality landscape. The firm also ing out vacant space for events. whole thing,” he said. “If the vice pres- is talking with representatives of ho- Dabbs said in Tampa they ended up ident of (a client company) comes into tels, restaurants and venues to help building a full catering kitchen on a town and wants to go to the Rock Hall them with convention-week pro- vacant office building floor to handle or a movie, we would manage that gramming and pricing. some events. also, if that’s what they want.” Though official committees are Kentucky’s Robertson, a longtime Cox lives in Avon. He has been and making plans on a macro level, indi- convention-goer, said he’s looking continues to be a Republican lobby- vidual convention goers or state forward to the Cleveland convention ist who is registered to represent John groups, like any other tourists, have in part because of GOP Convention Carroll University, the Harris Corp. (a to fend for themselves — unless they Strategies. And not just for throwing Florida defense contractor that was have the kind of help GOP Conven- parties like the Bluegrass Reception. Change the way you finance your commercial real estate. headquartered in Cleveland until tion Strategies is offering. “In the past, there’s been a low lev- 1978) and a handful of organizations The official Republican Committee el of satisfaction with the transporta- Let CBS help find the loan structure that works for you. in Columbus. The Cleveland conven- on Arrangements is running every- tion systems at conventions, and one tion is his first go-round with GOP thing inside the convention hall, and thing that GOP Convention Strate- Convention Strategies. the local Cleveland 2016 Host Com- gies has helped us do is secure our Jonathan A. Mokri Scott Cottington, though, is a con- mittee is raising the money needed to own buses so that our contingent Vice President vention veteran. A Republican politi- pull off the convention and getting from Kentucky knows what vehicles cal consultant in St. Paul, Minn., he hoteliers and transportation compa- they are riding in, they’re always on 440.526.8700 | [email protected] co-founded GOP Convention Strate- nies to make broad commitments to time and people don’t have to wait at www.cbscuso.com gies in 2008 with Washington political serve convention visitors during con- collection points and not be sure pro Darrel Henry in anticipation of the vention week. what bus they should get on,” he said. RNC convention in St. Paul. They ex- GOP Convention Strategies does- “For the overall convention expe- panded the business in 2012, serving rience, GOP Convention Strategies SM n’t work directly with those groups. Business Lending in Partnership with Area Credit Unions the Republican convention in Tampa. In an emailed statement, a spokes- has helped us deliver for our dele- A separate business, DEM Con- woman for the host committee said gates,” Robertson said.

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CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 9 Patent ruling gets technical Crackdown on software innovations is changing how some NEO companies protect their ideas

BY CHUCK SODER “How we do it is what’s unique. … heightened standard. tain whether it’s pushing more com- Trademark Office has not been kind It will be very hard to replicate,” he A Federal Circuit Court decision panies to go the trade secret route. to those so-called business method [email protected] said. at the end of 2014 narrowed things The decision, which was made in patents. @ChuckSoder down to some degree. Companies June 2014, must not have immedi- The America Invents Act of 2012 ately sent huge numbers of compa- created a new process for challeng- Data driven facing patent challenges are fre- It’s a scary time to be a software quently citing that case, DDR Hold- nies down that path: The number of ing them at the patent office. And patent. Although the Alice decision most- ings LLC v. Hotels.com L.P. The case patents granted that year increased Biernacki and other sources suggest Judges across the country are ly applies to software companies — — which has nothing to do with by 14%, continuing a five-year trend, that, post Alice, upwards of 90% of striking down software patents in Alice Corp. had patented an elec- DDR Corp., a real estate develop- according to the Pricewaterhouse patents that endure that process are the name of a U.S. Supreme Court tronic escrow system — at least one ment firm in Beachwood — states Coopers report. struck down. decision that is changing how some local judge has cited the decision in that software can be patented if it in- PNC Bank and U.S. Bank initiat- tech companies protect their ideas. a lawsuit that involved medical tech- vents a way to fix “a problem specif- ed one such challenge against a Last year, the Supreme Court an- nology. ically arising in the realm of comput- Processing the change Texas company called Secure Ax- gered patent trolls everywhere — as Last month, the Cleveland Clinic er networks.” Alice Corp.’s Still, Biernacki, of Jones Day, says cess LLC, which is “dedicated to well as some businesses that actual- and one of its spinoff companies, a electronic escrow patent would’ve more of his software clients are go- monetization and management of ly provide real products and services medical testing firm called Cleve- fallen short of that standard, given ing the trade secret route — espe- Internet security patents,” accord- — when it issued its decision in a land HeartLab, sued a company that escrow services were conduct- cially if the software is used to con- ing to its website. case called Alice Corp. v. CLS Bank called True Health Diagnostics for ed long before computers were in- trol a process as opposed to, say, a Secure Axcess was in the process International. One key takeaway allegedly using HeartLab’s flagship vented. piece of physical equipment, like a of suing the two banks and a long list from the decision: You can’t patent blood test, which is patented. Still, the lines remain blurry, ac- robotic arm. of other companies for allegedly vi- “an abstract idea implemented on a But the court refused to grant a re- cording to patent attorney Dan Mc- Patents designed to protect a fi- olating a patent on a technology de- generic computer.” straining order that would have Mullen of Calfee, Halter & Griswold, nancial product or process face a signed to verify the authenticity of As a result, at least two local com- stopped True Health from using the who is helping represent Datatrak. particularly high standard, he said. web pages. panies have had their patents inval- test during the course of the lawsuit. Future appeals court rulings should “There is a feeling that … moving In September, administrative idated while trying to stop other In her reasoning, U.S. District Court clarify things, he added. money around is something that the judges at the patent office struck companies from infringing on them. Judge Patricia Gaughan cited Alice McMullen said the Alice decision original patent laws aren’t designed down the patent, saying that it Both companies — Mayfield in an opinion that questioned is certainly having a big impact on to protect,” Biernacki said. “would have been obvious to a per- Heights-based Datatrak Internation- whether the patent would pass va- software companies, but he’s uncer- Indeed, the U.S. Patent and son of ordinary skill in the art.” al, which makes software used to lidity standards set by both Alice and manage clinical trials, and MacroP- a 2012 Supreme Court decision oint, a freight tracking software called Mayo Collaborative Services company in Independence — are v. Prometheus Laboratories Inc. appealing those decisions. However, the patent remains valid, Other businesses are thinking and the lawsuit is still underway. twice before they apply for software The same judge ruled on the patents, a few local attorneys said. Datatrak and MacroPoint cases. In And those that do have had to adapt. short, she ruled that the companies Now, in their patent applications, were using software do to things that From our Family they’re going out of their way to spell humans have done for ages: Data- out exactly why their technology is trak, she said, was organizing data; innovative, according to John Bier- MacroPoint was relaying it. to yours, nacki, an intellectual property attor- Datatrak CEO Laurence P. Birch ney and partner at Jones Day in noted in a news release that the Cleveland. company disagrees with the deci- “It’s definitely a concern to all of sion. The release also said the com- my software clients, both here in pany has other patents and will eval- Cleveland as well as West Coast, East uate its portfolio “with the benefit of May your Coast — everywhere,” Biernacki this decision and its reasoning.” said. MacroPoint put out a news re- Some companies also appear to lease, too. In it, president Bennett be thinking twice about filing law- Adelson said the Alice decision has suits against those who violate their hurt patent trolls — companies that Holidays patents. After skyrocketing over the make money only by putting legal past decade, the number of new pressure on businesses that might patent infringement lawsuits infringe on their patents. dropped by 13% in 2014, according But the decision also “has created to a report by PricewaterhouseC- confusion in the business communi- oopers. The report cited Alice as the ty and is now running the risk of not be Bright! cause. providing clarity of intellectual The Alice decision has influenced property rights for innovative com- Jack Hilton, too. Now, he and other panies like MacroPoint that are the mentors at The Bit Factory business original inventors of a credible and accelerator in Akron are suggesting viable product,” Adelson stated. that entrepreneurs be pickier about what they patent. He’s taking his own advice. A few Blurred lines years ago, he started a company Judges are invalidating patents in called Quixby with his brother, other cities, too, and that’s “kind of James, and their friend, Austin Ket- scary,” according to Christopher tner. They applied for a software Comiskey, a patent attorney at patent on the idea, which involved Thompson Hine, which is represent- using software to help people build- ing MacroPoint. ing custom computers find compat- Though he wouldn’t comment on ible parts. Today, however, Hilton that case, he noted that judges are admits that the idea behind that making decisions on patent validity patent probably wouldn’t pass the without citing outside evidence and myNYCB.com • (877) 786-6560 standard set by the Alice decision. expert testimony. That’s “disturb- Thus, they probably won’t apply ing,” given how much time and for a patent for their new startup. In- money companies put into getting stead, they’re taking another strate- those patents, Comiskey said. gy to prevent people from stealing He noted that there’s still some their idea: They’re not telling anyone ambiguity as to exactly what soft- about it. ware is considered patentable. Of course, once a product without “In anything we do, there’s some patent protection hits the market, abstract idea that you build on top of. So it’s a matter of, how much is people can try to create something ©2015 New York Community Bank similar. But Jack Hilton noted that the ‘something more’ that will get he’s not too worried. you over it?” he said, referring to the 20151221-NEWS--10-NAT-CCI-CL_-- 12/17/2015 4:30 PM Page 1

PAGE 10 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS Opinion

From the Group Publisher Focusing on the future during difficult times

Journalists are used to being the folks who tell the stories; it’s a humbling experience to be part of the story itself. But that’s the recent experience of the reporters, editors and entire team at Crain’s Cleveland Business, which was rocked by revelations that Publisher John Campanelli is fac- ing charges relating to two separate incidents of indecent ex- posure, both with female victims. When we first learned of the allegations, we posted a story on Crainscleveland.com, our website. As group publisher re- sponsible for our Cleveland operation, I placed John on administrative leave imme- diately. Other news media outlets have car- ried details of the allegations. Reading about your boss in such a public way can be demoralizing. The news was stunning, too, to many in the greater Cleve- land community who had come to know Mary John as Crain’s publisher — or who knew Kramer him in his earlier stint as a reporter, colum- Editorial nist and editor at The Plain Dealer. It is difficult to reconcile the John Cam- panelli all of us know with the person described in the police reports. There are many victims here, starting with the women al- legedly targeted in both incidents, which occurred days apart Time to heal in November. Next come Crain employees who feel a betrayal of trust Change is never easy. If you need proof of that, look no fur- wood Hospital Association would be faced with a decision to from a person who led them through a major leadership ther than Lakewood. Turmoil has infected the West Side sub- close as losses into the millions mounted. And that would change since being named publisher in 2013. urb since the city announced it would shutter Lakewood leave the city with an old, vacant and costly building. We are also concerned about John Campanelli himself. By Hospital in 2016. With this deal, Lakewood will still have a Clinic-run emer- his own account to police and his initial social media post, he On Dec. 21, Lakewood City Council will likely approve the gency room to deal with acute health issues. It won’t have a is a victim of a childhood trauma, and though under medical- closure of the 108-year-old hospital that has served sick citi- 223-bed inpatient hospital, but the need for that has been ly supervised care, he described the incidents as manifesta- zens at the corner of Belle and Detroit avenues in central steadily declining. Half the beds now are regularly empty and tions of that childhood experience. Lakewood for generations. there are other hospitals, four within 10 miles, with the ca- There is much we don’t know. The vote, however, is not a cure-all and it is not likely to pacity to handle patients who must be admitted. But here’s what we do know: First, John Campanelli is on an indefinite leave while the le- quiet a city divided since Jan. 15. That’s when the announce- It’s a reality that health care delivery continues to shift to gal process plays out and he receives professional counseling ment came that the 223-bed hospital owned by the city of outpatient care. We hear a lot these days about “population and therapy. Lakewood and run by the Cleveland Clinic since 1997 would health,” which basically means preventative and wellness Second, Elizabeth McIntyre, who joined Crain’s Cleveland close. The hospital would be razed and the Clinic has agreed care. Health systems now focus on keeping people healthy – Business as editor in 2014, has been named to the additional to erect a $34 million family health center and emergency de- especially those with chronic conditions like diabetes and heart disease – rather than waiting until they’re really sick, role of acting publisher, effective last Thursday, Dec. 17. Eliz- partment on part of the property. The rest of the land would which costs more to treat. abeth is well-known in Cleveland. A native of Youngstown, be open for development in a prime area of a business dis- Also, the shift to higher-deductible insurance policies she was an editor at The Plain Dealer for 20 years. trict in the midst of a renaissance. means consumers are looking for lower-cost alternatives to Nicole Mastrangelo continues to lead our sales and market- Neighborhood activists have fought diligently against the expensive hospital stays. ing team as she has since 2012. Nicole joined the publication closure, lining up Monday to urge City Council to vote no. This change gives Lakewood an opportunity to provide for nine years ago. They contend the deal benefits only the Clinic and say city the health needs of its aging, and shrinking, population. It We also know that our editors and reporters will continue officials should hold the Clinic to the terms of its lease, name- also gives the city a large tract of open land for development, to deliver the most up-to-date news and business analysis ly, running a full-fledged hospital there until 2026. A fully which is rare in this densely populated suburb of 51,000 peo- available in Northeast Ohio, in print and online. Our events functioning hospital is vital to the community, they argue, ple covering 6.7 square miles. That makes the deal good for team will continue to deliver the best content and attendee and say losses incurred by the Clinic are the result of the Clin- the health of the population and for the health of the local experience for the 13 major events we have planned in 2016. ic’s own actions. Some believe intentionally so. economy. Our sales and marketing teams will continue to deliver excel- Despite months of acrimony, the hospital’s fate was sealed Lakewood’s voters have spoken and its elected leaders are lent service, helping our clients connect with our readers. when voters rejected a measure that would have made it prepared to act, we believe, with the best interest of the com- Finally, as we come to the close of this publication’s 35th more difficult for the city to agree to a new deal with the Clin- munity in mind. “It is our job to deal with reality,” said Lake- anniversary year, we know this: The men and women of ic. Voters decided such a deal does not have to come sepa- wood Council President Mary Louise Madigan. Crain’s Cleveland Business will continue to serve our reader- rately to the ballot. Reality doesn’t bring with it a perfect prescription. The ship. So Lakewood’s elected leaders are going to do what they Clinic deal is not perfect. believe is best for Lakewood. And the fact is, this deal is best. But it’s time for the community to swallow this pill, how- Mary Kramer, vice president and group publisher, is based in If council were to reject the plan, the economic realities ever bitter to some, and look to the future. Detroit and has been an executive at Crain Communications would not change and it would still be possible that the Lake- Further discord would just be unhealthy. for 26 years.

ACTING PUBLISHER AND EDITOR: WRITE US: Crain’s welcomes responses from readers. Letters should be as brief SOUND OFF: Send a Personal Elizabeth McIntyre ([email protected]) as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 View for the opinion page to West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing [email protected]. Please MANAGING EDITOR: [email protected]. Please include your complete name and city from which include a telephone number for CLEVELAND BUSINESS Scott Suttell ([email protected]) you are writing, and a telephone number for fact-checking purposes. verification purposes. 20151221-NEWS--11-NAT-CCI-CL_-- 12/17/2015 2:56 PM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 11

Web Talk Re: Johnny Manziel Akron, will remain leaders and educated workers, capital and back at the helm evangalists in the entrepreneur- leadership to grow as strongly ship/accelerator space here in as other large states do. It means His master’s in professional NEO, at least in some form. We Ohio’s growth will stumble along football begins Sunday, Dec. 20, need to keep growing and pushing about equal to states like Montana. Our Community, against the Seattle Seahawks. Will forward the concept of seeding And Northeast Ohio’s growth rate he pass Prof. Sherman’s exam? a company here. It will ultimately will be half that of Cincinnati Our Priority. — hottlink lead to more talent in the region and Columbus. and more economic gains. Well — Tim Evanson Re: Growth at done, fellas! Hartland & Co. — Scott Moss Re: Study on connection of money, happiness Your Law Firm Growth of 50%+ is a great goal, Re: Economic but size eventually gets in the way. outlook for 2016 In his Editor’s Choice blog, The bigger you get, the more Scott Suttell writes that a paper difficult it becomes to add more “(M)oderate GDP growth and a by David Clingingsmith, an revenue without systems and stable unemployment rate close economics professor at Case processes. I don’t doubt the focus to 5% in 2016, with similar trends Western Reserve University’s on institutional clients will be a continuing through 2017,” the view Weatherhead School of boon toward quick growth as the from Mark Sniderman, an adjunct Management, “adds to the UNPARALLELED LUXURY HOME MARKETING company continues to expand. professor of economics at Case longstanding debate among A big congrats to all involved on Western Reserve University economists about whether money the team and its acquisition of the Weatherhead School of Manage- can buy happiness.” People who ACTIVE Lancaster Pollard Investment ment, is bullish??? You’ve got to be say that money can’t buy happi- Advisory Group. kidding. Sniderman said during the ness don’t know where to shop! — Nate Nead 42nd David A. Bowers Economic — Bob Fritz Forecast Luncheon, “What we’ve Selling Your $500,000+ Re: Startup accelerators seen in the past two years is Re: HealthSpan about what we’ll see in the next in Cleveland Physicians medical NE OHIO Home? two years. There won’t be a return http://www.cbhunter.com/3692903 Glad to hear that there is some to the high 5 or 6 percent a year group to dissolve optimism and people like growth that we saw prior to 2008.” It’s interesting that HealthSpan Flashstarts CEO Charles Stack, That’s hardly bullish. That’s an waited until after the end of the COLDWELL BANKER LaunchHouse CEO Todd Goldstein assessment that Northeast Ohio open enrollment period for WORLDWIDE LEADER in and Anthony Margida, president of lacks the transportation and transit Medicare. (Hurting) customers (is) LUXURY HOME MARKETING the Bit Factory accelerator in infrastructure, job training, not very Christian. — Stephen Over 21,000 sales over $1 Million Dollars closed last year.

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PAGE 12 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS THE DISH Startup steps up its platform Gypsy Brewing, a startup launched “How often do you see manufac- out like crazy.” last year by Justin Carson and Paul turing jobs coming back to Cleve- By spring of next year, the part- Benner of Platform Beer Co., is now land?” Carson said. He added, “Our ners said, Platform beer will be in set to move into its permanent home. objective is to make good beer and more Ohio markets. The company The partners are completing renova- as much beer as possible.” already self-distributes beer across tion work on a 10,000-square-foot “From the beginning, we’ve been Northeast Ohio, but they’re entering portion of the former Leisy Brewing giving back to the home brew com- Columbus and other cities soon. Co. on Cleveland’s West Side, where munity and creating a collaborative Self-distribution has been key to they’ll perform contract brewing for brand,” said Benner, citing partner- their success. “When we send some- other small brewers and expand their ships with B Spot, Melt Bar and one in, they’re representing just one own production. Grilled, and Cleveland Clothing Co. brand, and there’s a very high level “People are excited about that.” of customer service,” said Carson. The first startup brewery that has “Most of the time the demand is Lee Chilcote signed on to work with Gypsy is actu- so high that the beer is dropped off ally considered the oldest craft brew- the same day it’s brewed,” added Chilcote is a ery in the United States. New Albion Benner, citing the local beer’s fresh- freelance writer Brewing Company was only around ness as a competitive advantage. Justin Carson, left, and Paul Benner see Gypsy Brewing as and editor who from 1976-1982, but it had a big im- “We don’t have a huge warehouse of “a collaborative brand.” (Lauren Pacini) has written for pact on the craft beer industry. It was beer sitting around.” Vanity Fair, Next founded by Jack McAuliffe, whose Platform will offer four seasonal ties for expansion. They also liked the place had been picked clean. City, Belt and daughter Renee DeLuca decided to beers in addition to their year-round the poetic quality of brewing beer on “The scrappers had a field day with other publications.He is the cofounder revive the brand a few years ago to staples, the New Cleveland Palesner the site of what was once Cleveland’s this place,” Carson said. of Literary Cleveland. much fanfare. Gypsy will brew McAu- and Speed Merchant White IPA. The largest brewery. Leisy pumped out Yet the building survived looters, liffe’s original recipes and handle seasonals will include the Yamma 600,000 barrels of beer a year in its brutal winters and the wrecking ball The new space will allow Platform packaging and distribution. Carson Jamma Sweet Potato Ale in the fall, heyday, or three times the current because of its rock solid construction. to dramatically expand the amount and Benner are in talks with others the Lawlessness Porter in the winter, output of Great Lakes Brewing Co. “The first time we walked in here I of beer they’re making. Carson and about contract brewing, but are not and a to-be-named radler or shandy Founded by Isaac Leisy and two of was like, ‘Wow, there’s not a stick of Benner plan to brew up to 20,000 ready to announce any names yet. that will be brewed with Old City his brothers in 1873, Leisy Brewing wood in this place,’ ” said Benner. barrels here next year, a big jump “My father traveled in the Navy in Soda Co. in the summer. The spring Co. was forced to close during Prohi- Gypsy Brewing spent more than a from just 2,500 barrels in 2015. Gyp- the late ’60s, and for a while he was seasonal will be a collaboration with bition, but subsequently reopened million dollars renovating the place. sy’s contract brewing clients will in- stationed in Scotland, where he another rapidly expanding Ohio and continued to make beer until They added all new HVAC and me- clude brewers that don’t have their learned about brewing and these brewery and will also be announced 1959. The building was then occu- chanicals, replaced a portion of the own equipment and restaurants that great European ales,” DeLuca said. soon, said Benner. pied by Downing Exhibits, a compa- roof, and added new drain spouts, want to create private label beers. “Then he came back home and said, The company will also release a ny that makes trade show displays, among other improvements. The partners behind Gypsy bought ‘Gee, I can’t find these wonderful special fruit pale ale series called the before changing hands a number of Carson loves the idea of bringing the long-vacant, 90,000-square-foot beers I used to drink, so I guess I’ll Cherimoya project. They’ll be using times. The most recent owners were craft beer back to Cleveland, which Leisy building last year for $125,000. just have to make them myself.’ ” exotic fruits like bergamot oranges mostly interested in soaking up rev- was once home to more than 30 Over the next five years, they plan to New Albion set up shop in Sonoma on top of a base beer to create fresh enues from the billboard next to the breweries before Prohibition and is renovate more of the building and County, Calif., but when McAuliffe new concoctions. building. When Gypsy bought the now seeing a fresh wave of brewery create 100 new jobs. The project will found it difficult to get a loan to ex- The partners behind Gypsy building last year, they allowed the startups. “It really feels like it’s com- allow Platform the opportunity to ex- pand, he closed the business. DeLuca bought the behemoth Leisy proper- previous owner to retain ownership ing full circle,” he said. pand while helping other brewers, believes he was ahead of his time. ty, which is located at 3506 Vega Ave. of the lucrative billboard. too — a collaborative approach that “Still to this day, he has a very big just south of I-90, because its stout Carson and Benner say that when To contact Chilcote, send an email to has been at the heart of their busi- following,” she said. “Everything brick walls and concrete floors of- they first walked through it, every [email protected]. You also can ness model from the start. we’ve been doing has been selling fered almost unlimited opportuni- surface was covered with graffiti and follow him on Twitter @leechilcote. 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CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 13

How unfinished business has been the story of 2015

BY JAY MILLER “… when the Republican presidential nominating conven- tion begins in July.” Since the Republican National Committee selected Cleve- land to host its 2016 presidential nominating convention on July 8 last year, that phrase, or some variation of it, has been a large part of the region’s civic conversation. Not who will win the nomination or if the nominee will have a fighting chance to win a four-year stay in the White House. Not even about how the community will raise the $64 mil- lion it will cost to put on a political road show for 50,000 del- egates, politicians and media crews from July 18 to July 21. Or who will benefit from the upwards of $200 million-plus SEE RNC, NEXT PAGE Lisa Lorek 20151221-NEWS--14-NAT-CCI-CL_-- 12/17/2015 4:09 PM Page 1

PAGE 14 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS NEWSMAKERS RNC CONTINUED FROM PREVIOUS PAGE The host committee is the local organiza- number of hotels would hold 90% of their the road show will spend at hotels, restau- tion charged with raising money and prepar- “There are very rooms for the RNC. The RNC wants to be rants and elsewhere. After all, that’s 3% or 4% ing the city for the convention. Among its able to assign hotel rooms so that, for exam- to a region’s retail income. tasks have been lining up 16,200 hotel rooms few things that ple, state delegations are housed together in Rather, for the civic community, the week- and 60-plus venues for parties and other a single hotel. It also wanted price commit- long event is being seen as a chance to close gatherings. ments, typically around $150 a night in sub- the door on the old Cleveland — the rusted, To win the convention, the host commit- we can say, urban hotels, for example. So the host com- burning-river Cleveland. It’s a chance to tee pledged to raise about $64 million to pay mittee got signed agreements with hotels for make a game-changing impression on a na- for the convention, including supporting fi- ‘Hey, we’ve most of that 16,200 goal. tional stage. nancially and administratively the RNC’s But some of the hotels were approached The hope is that media will fill convention Committee on Arrangements. As one observ- by media companies willing to pay a premi- lulls with local vignettes showcasing how er described it, the committee on arrange- gotten it done, um, up to $230 a night, according to a source, long-term changes, such as the flowering of ments is responsible for everything in the and broke their contracts. But Gilbert said a downtown Cleveland residential commu- arena and the host committee, everything check the box most are now back in the fold. nity and a burgeoning medical and biotech- outside the arena. “There were a number that disregarded nical business complex stretching east from Both the host committee and the RNC’s and we’re on to that voluntarily signed agreement,” he said. downtown, have made Northeast Ohio an at- Committee on Arrangements were formed “But we’ve come to terms with nearly every- tractive place to live and do business. earlier this year. The host committee has a body. We’re not 100% there, but nearly.” And maybe those media reports will use as small staff under Gilbert, who continues as the next thing.’ The other center of convention activity in backdrops newly resurfaced streets, refur- president and CEO of the Greater Cleveland the months leading up to the convention is bished open spaces such as Public Square Sports Commission and Destination Cleve- You can get Cleveland City Hall. and lively entertainment districts like East land, which functions as the city’s conven- The city has taken on the role of ensuring Fourth Street and the Flats that will impress tion and tourism bureau. The host commit- that the major capital improvement projects television viewers enough to consider a visit tee leans on the staffs of those organizations largely the way — the streets, the airport and Public Square to the North Coast. for help. — are all ready on time. It also will be the Perhaps, too, easier to navigate places like In February, the RNC announced that Jeff there, but most center of activity for security funding, though a remodeled Cleveland Hopkins Internation- Larson would lead its committee as CEO. the Secret Service will be making key deci- al Airport, or new downtown trolleys, will Larson, a veteran of past Republican conven- of these things sions. send those 50,000 visitors home with a few tions, has set up shop and is building a staff “So far, so good,” said Valarie McCall, good things to say about Northeast Ohio and on the fourth floor of the Halle Building in Mayor Frank Jackson’s chief of government plans to return for a more leisurely visit. Playhouse Square. By the end of October, the don’t end until affairs and the city’s convention point per- All of these projects large and small were committee staff had grown to 14 people. son. “We’ve done a lot to prepare, but the going to happen with or without a political So far, Gilbert said, his group has commit- the convention closer you get to the convention, the more convention. The convention just allows them ments for $42.5 million, mostly from within the challenges come.” to be gift wrapped. Northeast Ohio, and he expects the remain- McCall said the security plan will be the But for the plan to work, all of this effort der to come from national corporate spon- happens.” most fluid part of the planning, but that has to be completed before the Republican sors who only now are finding the political means that the transportation plan — mov- visitors start arriving, and many will be here conventions on their radar. — David Gilbert ing people smoothly into and out of whatev- a week or two ahead of the formal start of the president and CEO, Cleveland er security perimeter the Secret Service cre- convention July 18. ates — must be well-planned and flexible. 2016 Host Committee So, how well is that planning going? It’s taking shape The city got the early Christmas present it David Gilbert, president and CEO of the The committee is also building an infra- was hoping for when Congress included se- Cleveland 2016 Host Committee, would like structure to make things move smoothly. curity grants of $50 million each for the pres- to be able to say he was halfway through his It’s seeking 5,000 volunteers who will be idential nominating conventions that will be checklist of things to accomplish before the assigned to downtown and suburban hotels, held in Cleveland and Philadelphia in the fis- Republicans arrive for their convention in the airport and other places visitors will gath- cal year 2016 appropriations bill passed be- July. er to offer assistance. fore Washington’s Christmas break. But it doesn’t work that way. It’s also created a vendor directory for The next big decision will be hiring a trans- Some things, though, are moving ahead. “There are very few things that we can say, businesses interested in serving the conven- portation coordinator to manage the fleet of City council and Cuyahoga County Council ‘Hey, we’ve gotten it done, check the box and tion crowd. At the beginning of December, buses to shuttle visitors around the region. have received assurances from the developers we’re on to the next thing,’ ” he said. 1,280 firms that do everything from catering The hotel room situation turned out to be of six under-construction hotels in Cuyahoga “You can get largely the way there, but and equipment rental to dentistry had the biggest hassle for Gilbert. As part of its County that their projects will be completed most of these things don’t end until the con- signed on at https://www.2016cle.com/be- bid for the convention, the Cleveland com- by the time the Republican presidential nom- vention happens.” come-a-supplier. mittee had to gather pledges that a certain inating convention begins in July.

35 YEARS OF NEWS & NEWSMAKERS he excitement in Cleveland is palpa- In the grip of its post-default era, Cleveland’s outlook is generally T ble. The Republican National Con- bleak. Mayor George Voinovich haggles with six banks that hold 1982 vention is coming to town, millions of 1980 $10.5 million in city debt. Truck maker White Motor Corp. seeks Chap- dollars worth of construction projects ter 11 protection from its own creditors. Renegade CEO Harry Figgie Jr. packs up his conglomerate, A-T-O Inc., and lights out for Richmond, are coming online, downtown residential Va. Over at the Cleveland Press, new publisher Joseph Cole tries to fig- occupancy is almost at capacity and the ure out how to save the city’s struggling afternoon newspaper. In this inhospitable city has seemingly escaped its label as environment, a new kid emerges on the block: Crain’s Cleveland Business publish- the mistake on the lake. es its first issue in March. Meanwhile, another “kid,” not quite so young, is on the As Crain’s Cleveland Business cele- rise, and Cleveland plays a starring role in his ascent. Public Hall is the stage for brates its 35th anniversary, we thought an October debate between Republican nominee Ronald Reagan and President it would be an opportune time to dig Jimmy Carter, the man he will defeat the following week. The Cleveland Press Collection (4) through our archives and remind you — Like dominoes, a series of iconic Cleveland institutions fall, our loyal readers — how this narrative The legendary “Red Right 88” kicks off the new year, abruptly ending starting with the venerable Halle Bros. on Euclid Avenue, one unfolded. the Cleveland Browns’ season on the threshold of the Super Bowl of 16 Halle’s department stores (pictured below) shuttered 1981 and extending the city’s sports title drought, which persists to this by a new owner. On Lakeside Avenue, the Cleveland Press fi- Over the last 35 years, we’ve seen day. Failure on the gridiron is a metaphor for the economic woes of nally folds. “We gave it our best,” publisher Joe Cole writes in companies come and go, political scan- a recession-plagued Rust Belt town. Local suppliers feel the sting of a page one column above a headline all the more striking for dals unfold and our sports teams contin- a slumping auto industry, while Crain’s reports that area lenders will fore- its simplicity: “Press Halts Publication.” To the east, General ually disappoint. At the same time, close on more home mortgages in 1981 than in any year since the Great Depres- Motors’ Fisher Body plant on Coit Road closes after a 60-year Northeast Ohio’s residents and business sion. (Sound familiar?) The Plain Dealer’s purple-tinged attempt to rebrand the run, idling 1,300 hourly and 400 salaried workers. Fisher Foods owners showed impressive resilience. city — “New York’s the Big Apple, but Cleveland’s a Plum” — goes bust. But a few announces plans to close 17 Fazio’s stores in 1984. All this Just chalk it up to a little Midwestern entrepreneurial types row against the tide. Cleveland Cavaliers owner Ted Stepi- economic wreckage finds a dramatic visual in the October im- en starts Nationwide Cable Advertising to sell a regional all-sports channel to ad- plosion of the eight-story Cuyahoga and 16-story Williamson grit. vertisers and cable companies. And Tecmar Inc. founder Marty Alpert gets a rous- buildings on Public Square. At least their demise signifies Join us on a trip through the last 35 ing reception at a Las Vegas computer trade show for his Beachwood company’s progress; they are razed to make room for Standard Oil Co.’s years of Crain’s headlines, won’t you? add-on devices for IBM’s newest product, the personal computer. $200 million headquarters tower. 20151221-NEWS--15-NAT-CCI-CL_-- 12/17/2015 3:55 PM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 15

35 YEARS OF NEWS & NEWSMAKERS: 1983-1989

It’s a good year for Cleveland’s Jackie Presser, the eighth- grade dropout elected president of the International Broth- 1983 erhood of Teamsters. In fact, it marks the pinnacle of his career. At his death five years later, he is awaiting trial on federal racketeering and embezzlement charges stemming from alleged ties to organized crime. Things work out much better for two other Clevelanders, brothers George and Gordon Gund, who buy the foundering Cleveland Cavaliers from Ted Stepien for $20 million — possibly rescuing pro basketball in their hometown — and own the franchise for the next 22 years. Another Cleveland native who scores big in 1983 is world-renowned architect Philip Johnson, design- er of the Cleveland Play House’s expanded theater com- plex, which opens on East 86th Street and serves for the next 28 years as home to the country’s oldest profession- al resident theater company. Johnson endures, too, pass- ing away in 2005 at age 98.

Local business executives make power plays Throughout downtown Cleveland, new capital — and news. Carl Fazio, ousted CEO of Fisher projects take shape. Architect I.M. Pei unveils 1984 Foods, plots a comeback at the company 1988 plans for a $25 million, 18-story “glittering through a proxy fight. CEO Ralph Schey tries glass tent” for the Rock and Roll Hall of Fame to buy Scott & Fetzer for $50 a share, but is re- and Museum, intended as part of the emerging buffed: The next year, Warren Buffett’s Berkshire Tower City complex. That project firms up anoth- Hathaway Inc. acquires the company behind an eclectic er piece: a Ritz-Carlton hotel. On Public Square, brothers product mix including World Book encyclopedias and Kirby Richard and David Jacobs break ground for their 57-story vacuum cleaners. In the public sector, Mayor George Society Center and 400-room Marriott hotel. Down Euclid Voinovich pulls the plug on another kind of power play that Avenue at Playhouse Square, the curtain rises on the re- would have given Cleveland Electric Illuminating Co. all the stored Palace Theatre, one of the crown jewels in the na- 16 VISITS. city’s residential business and left only the municipal build- tion’s second-largest performing arts center. Down on the ings to Cleveland Public Power. David Hoag becomes pres- lakefront, a Coast Guard boat carrying Gov. Richard Celeste ident of LTV Steel Co. en route to the top power position and Mayor George Voinovich cruises into the newly devel- as CEO. Not to be outdone, voters flex their own muscle by oped North Coast Harbor. Alas, an old, albeit less imposing, 21 MONTHS. trouncing a Cuyahoga County property tax levy to fund a lakefront landmark will soon face demolition: Captain domed stadium downtown. Frank’s files for bankruptcy after serving its final seafood platter. Also on its last legs: the Force, Cleveland’s pro in- LEADERSHIP On course toward a shutdown in 1986, trou- door soccer team, which the Wolstein family folds, citing a bled Wright Air Lines cuts flights from Burke poor financial outlook. 1985 Lakefront Airport. The debate continues to this day over whether Burke is the best use What’s in a name? BP America retires the fa- REDEFINED. of that prime real estate. However, former miliar red, white and blue “Sohio” signs at gas Cleveland ad man Eddie Spizel floats an idea that 1989 stations throughout the region in favor of WEATHERHEAD EXECUTIVE MBA PROGRAM will eventually help transform another key piece of the the BP green and gold. Also consigned to the city’s shoreline: Push for Cleveland to become home to the scrap heap is the “Forest City” name on a chain future Rock and Roll Hall of Fame and Museum. Ohio Gov. of lumber and do-it-yourself stores. With a new Groundbreaking leadership concepts Richard Celeste is down with that quixotic vision and will owner, they will operate under the “Handy Andy” banner lobby for it but, in early 1985, he has a more urgent issue until that chain expires in 1996. Step2 Co. is the name of for the business of a better world. on his hands: depositor runs on state-insured S&Ls, trig- the new company started by plastic toy maven Thomas gered by fraud and mismanagement at Home State Sav- Murdough, who founded Hudson’s Little Tikes Co. in a barn APPLY TODAY AT WEATHERHEAD.CASE.EDU/EMBA ings Bank in Cincinnati. In response, the governor invokes in 1970, but departed amid differences with parent com- a five-day thrift holiday at 71 Ohio S&Ls. In Cleveland, an- pany Rubbermaid. The “Ameritrust Center” name will nev- other S&L is the target of a federal probe as the govern- er catch on because, although City Council votes $122 mil- ment sues to recover more than $9 million in payment for lion in tax breaks for the 60-story tower proposed by the delinquent commercial loans owed to the defunct Cleve- Jacobs brothers, the Public Square project will later evap- land Community Savings Co. orate along with its prime tenant, the bank holding com- pany Ameritrust. Over at Cleveland City Hall, the new Cleveland appears to be awakening from a name is Michael White, the state senator who surges from long economic swoon — and suddenly, we’re obscurity to victory, beating City Council president George 1986 popular! In addition to landing the Rock Hall, Forbes to become mayor. the city makes a positive impression on Unit- ed Church of Christ officials, who choose Cleve- land over four other cities as home to their 300- person headquarters. Plus, the scent of new development is in the air: Forest City Enterprises secures $59 million in pri- vate financing to move forward with The Avenue at Tower City Center, a 120-store shopping complex at Terminal Tow- er. And developer Jeff Jacobs reveals plans for Nautica, a restaurant/office/retail complex in the Flats. At Eaton Corp., CEO and Chairman E. Mandell DeWindt retires, ending a 17-year run. Gov. Richard Celeste’s Statehouse run, though extended four years by re-election, is engulfed in scandal surrounding a job he proposed creating in England for a woman who serves his wife as press secretary.

Curses! Foiled again … The year begins with The Drive, which again bars the Browns from the Super Bowl, followed by the cockamamie Sports Illustrated pre- 1987 diction that the Cleveland Indians will finish first in the American League East. (They’re last.) But Clevelanders hang tough. Just look at Jacob Sapirstein, founder of American Greetings Corp., who notches 102 years before his death in June. Indeed, toughness is the order of the day as a spate of bad business news hits home: 250 jobs gone as Sherwin-Williams Co. sells its Gray Drug Fair unit to Rite Aid Corp.; 115 jobs eliminated as Durkee Famous Foods Inc. moves its headquarters to New Jersey; 4,500 people out of work with the closing of 63 Fisher Foods stores. And the one that deflates Akron: After 87 years there, some 450 jobs lost when Firestone Tire & Rubber Co. heads for Chicago, which just hap- pens to be the hometown of CEO John Nevin. Akron gets a consolation prize of sorts when it is selected as the new home of the National Inventors Hall of Fame, but the hall sputters financially and finally relocates again, this time to Virginia. 20151221-NEWS--16-NAT-CCI-CL_-- 12/17/2015 3:56 PM Page 1

PAGE 16 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS NEWSMAKERS

Civic Vision 2000, an update of Cleveland’s master 35 YEARS OF NEWS & NEWSMAKERS: 1990-2001 plan, calls for major waterfront projects, including a 1997 convention center, aquarium, visitors center and the Euclid Beach carousel at North Coast Harbor, as Proponents of the planned Gateway arena/ballpark With President Bill Clinton in attendance, the Indians well as a revamped Shoreway in the mold of Chicago’s complex eke out a narrow win at the ballot box in open their new ballpark, Jacobs Field, on a sun- Lakeshore Drive. The wish list doesn’t mention a World 1990 May, with voters approving a sin tax on alcohol and 1994 splashed April day that banishes memories of the Series title, but the Indians come close before dropping Game 7 tobacco to fund the project. Gateway will rise on the previous January, when the thermometer plunged in extra innings. With that, veteran Tribe announcer Herb Score old Central Market site, but doubts fester about the to 20 degrees below zero — still the coldest day in signs off for the last time. Baseball writers get plenty of Cleve- future location of the Rock and Roll Hall of Fame and recorded weather history in Cleveland. In October, the land exposure as the city also hosts the All-Star Game, where Museum, which threatens to pull out of the Tower City neighbor- Cavaliers officially relocate downtown with the opening of Gund hometown hero Sandy Alomar Jr. is named MVP. Over at Gund Are- hood in a dispute over plans for a huge record store at the mall. Arena, the second piece of the $425 million Gateway project. But na, the Cleveland Rockers debut, bringing women’s professional In Middleburg Heights, CEO Robert Edgell pulls out of the compa- shiny new venues can’t hide the fact that Cuyahoga County is basketball to Cleveland. But it’s not all fun and games. Ford plans ny that bears his name. He will commit suicide on New Year’s Day cash strapped, in part because of faulty investment practices that to cut 1,800 jobs at its Lorain plant when the automaker decides 1991. Another shakeup occurs at underperforming Ameritrust drain the SAFE investment fund run by Treasurer Frank Gaul. to discontinue production of the Ford Thunderbird and Mercury Corp., where chairman and CEO Jerry Jarrett resigns in the wake There’s turmoil, too, at the Council of Smaller Enterprises, where Cougar models. At Playhouse Square, Ray Shepardson, the cata- of an announcement of 780 layoffs. There’s more downsizing at executive director John Polk suddenly resigns, one week after Ca- lyst behind the area’s redevelopment, fails in his attempt to re- BP America, where more than 500 corporate headquarters staff role Hoover is installed as head of COSE’s parent, the Greater vive the Hanna Theatre with a cabaret. positions are axed. However, one large company sees potential Cleveland Growth Association. But it’s all smiles in Beachwood, in the Cleveland market. Crain’s reports the pending entry of the where Seattle-based Nordstrom plans to enter the market as the Comings and goings: Mayor White taps New York nation’s No. 3 retailer: Hello, Walmart. anchor of an expansion at posh Beachwood Place mall. City schools administrator Barbara Byrd-Bennett 1998 to lead the Cleveland public schools. With the Two men, each a local legend in his own right, pass The economy is booming, with vacant industrial pending arrival of a new Browns franchise, MBNA from the scene: Ben Stefanski Sr., founder of Third space at a premium and factories reporting their Corp.’s Al Lerner emerges as the owner, agreeing 1991 Federal Savings and Loan Association, and Paul 1995 biggest job gains in five years. Civic spirits are high, to pony up $530 million for the team. A new public Brown, founding coach of the Browns and the with the Indians playing to sold-out crowds as they company debuts as owner Dick Jacobs offers shares in Cleveland Cincinnati Bengals. But a new face appears at streak to their first World Series appearance in 41 Indians Baseball Co. Cleveland suffers losses, too, with the deaths Browns’ headquarters when owner Art Modell an- years. The good times roll as more than 10,000 people of billionaire Swagelok Co. founder Fred Lennon, 92, who started nounces the signing of rookie head coach Bill Belichick. As the flock to North Coast Harbor for the September dedication of the the supplier of industrial valves and fittings with $500 from his team struggles to rebound from a dismal season, Higbee Co. grap- Rock and Roll Hall of Fame and Museum. Ohio Gov. George wife’s uncle, and polka legend Frankie Yankovic, 83. The British bid ples with its own issues, prompting President H. Gene Nau to Voinovich and Mayor Michael White join a celebrity throng that in- Cleveland “ta-ta” as BP’s purchase of Amoco shifts the company’s meet with staff to deny rumors that the chain will be sold or re- cludes John Lennon’s widow, Yoko Ono. The next night, Bruce U.S. headquarters to Chicago, with a loss of roughly 1,000 local named Dillard’s after its 50% owner, Dillard Department Stores. Springsteen and Chuck Berry kick off a celebratory concert at jobs. Then, the redcoats double down by closing the U.K. con- Higbee’s maintains a Public Square presence for the moment, but Cleveland Municipal Stadium. What’s to become of the obsolete sulate here. And newly formed FirstEnergy concludes a workforce fast-growing auto insurer Progressive Corp. dashes hopes of a arena after the music fades? Local architects Thomas Zung and review by slashing 1,300 jobs. move downtown. Its CEO, Peter Lewis, abandons his dream of a Richard Bowen envision a combined stadium/outlet sports mart. $400 million lakefront headquarters designed by architect Frank Meanwhile, a Wisconsin-based real estate developer plans to ren- The Browns are back after a four-year hiatus, but Gehry and opts to expand in suburban Mayfield Village. The out- ovate the National Terminals building near the Warehouse District fans at new Cleveland Browns Stadium find little to look is brighter for a new federal courthouse, but it will be more for apartments. It’s such a feel-good era that nobody sees the 1999 cheer as the team posts a 2-14 record in its first than a decade before the Carl B. Stokes U.S. Courthouse opens blow coming in November: Art Modell will move the Browns to Bal- season. To the south, another arena reaches the on West Superior Ave. timore. Happy Thanksgiving. end of the line: The Coliseum, site of the 1976 Cava- liers’ playoff run known as the “Miracle of Richfield,” is razed. Also doomed is the decade-old Cleveland Health Quality Build it and they will come? Not so Choice Program, which folds when nine Cleveland Clinic hospitals fast. Yes, Cleveland will house the refuse to submit data intended to document their quality of care. 1992 future Rock and Roll Hall of Fame and Churn persists in the local health care market as University Hos- Museum, but that doesn’t mean we’ll pitals buys a half-interest in four Catholic hospitals owned by Co- host the annual induction cere- lumbia/HCA Healthcare, which then exits Cleveland. Another monies. Still, there’s hope when New looming transaction has people talking: Dick Jacobs, whose Indi- York’s hammerlock on the event is ans went to two World Series, puts the team up for sale. Investors broken. The next year, it will be in … led by local attorney Larry Dolan will purchase the ballclub the fol- Los Angeles. Controversy stirs at the lowing year. Yet another deal sets off municipal fireworks as municipal level, too, when Brook Park Cleveland, with future airport expansion in mind, agrees to pur- Mayor Thomas Coyne attacks the chase the I-X Center from Park Corp. Brook Park responds by go- proposed $500 million expansion of ing to court. Cleveland Hopkins International Air- port, claiming it will hurt nearby de- The nation’s Y2K jitters quickly vanishas people re- velopment and endanger the adja- alize the world will not end after all. The Cleveland cent I-X Center. BP America’s 3,500 2000 Orchestra reopens its renovated home, Severance Cleveland area employees are feel- Hall, showcasing a concert hall worthy of one of ing pretty endangered themselves the world’s great musical ensembles. Cleveland when they learn that 600 local jobs State University’s Convocation Center is the setting for will be cut and that Robert Horton, March Madness as the NCAA men’s basketball tournament former CEO of the U.S. unit, has re- comes to town for the first time. On a somber note, cash flow signed as head of parent BP. Across problems force Mt. Sinai Medical Center to close its doors after Euclid Avenue from the BP building, nearly a century of service. East 9th Street sinks, too, as 25 mil- the landmark May Co. building goes lion gallons of water from a broken main gush onto the major on the block at a $40 million asking downtown artery and surrounding streets, just in time for price, but the store will soon close, evening rush hour. City crews, laboring in the January cold, will following Halle Bros. and other down- need four days to make repairs and shore up East 9th. In West- town department stores into the his- lake, real estate developer Robert Stark and partner John Car- tory books. ney look to be on shaky ground as a mostly hostile audience cri- The Cleveland Press Collection tiques their plans for the mixed-use Crocker Park. But the development goes forward, opening in phases, and it stands as “Consolidation” is the new buzzword in health care, Cleveland’s year-long bicentennial celebration culmi- the suburb’s centerpiece today. where Cleveland Clinic takes its first step toward nates in a three-day bash that draws more than 1 1993 forming a hospital network, signing an affiliation 1996 million people to the Flats. Moses Cleaveland and “We’ll never be the same because of this.” Jim agreement with the two-hospital Health Cleveland his surveying party couldn’t help but notice a few Clark, managing partner of a local security man- system that comprises Fairview General Hospital and changes if they made a return visit to the town they 2001 agement firm, makes that accurate prophecy as Lutheran Medical Center. It’s much the same story in laid out 200 years earlier. True to form, change is the Cleveland businesses react to the Sept. 11 terror- banking, where Cleveland’s Society Corp. enters a so-called only constant. Take area codes, which were once sacrosanct. ist attacks. Companies schedule more evacuation “merger of equals” with KeyCorp of Albany, N.Y. Society Chairman Now, as electronic gizmos like cellphones and fax machines gob- drills and reassess videoconferencing versus travel, Robert Gillespie emerges as head of KeyCorp, the nation’s 10th ble up telephone numbers, Northeast Ohio’s 216 area code is while investors seek safe havens for their money. Even before largest bank, which will now make its home in Cleveland. In other cleaved with the creation of 330 for points south. Merger, not the disaster, the burst of the dot-com bubble has venture capi- industries, notably manufacturing, a growing shortage of skilled separation, is the name of the game in the electric utility field, talists and other tech investors tightening their purse strings. workers threatens to hamper production, despite a regional un- where giants Ohio Edison and Centerior Energy unite in a $1.5 bil- Cleveland’s bubble, too, seems to be deflating. Census figures employment rate of 7%, as Crain’s documents. The skills gap be- lion deal to create FirstEnergy Corp. When the Federal Trade show the city’s population dropping below 500,000. Albert Rat- comes a cause célèbre in local sports, with Browns head coach Commission refuses to approve the proposed merger of drug- ner, co-chairman of Forest City Enterprises Inc., voices a grow- Bill Belichick citing “diminishing skills” as his reason for sacking store heavyweights Rite Aid Corp. and Revco, Rite Aid walks and ing sentiment that the vaunted Cleveland comeback of the popular quarterback Bernie Kosar. We’ll never know the full ex- Revco flies to the arms of CVS Corp. Meanwhile, federal Judge 1990s is losing steam. Ditto the Indians’ sellout streak, which tent of promising Indians pitcher Steve Olin’s skills. He and pitch- Robert Krupansky ends two decades of court-enforced busing comes to an end April 4 after 455 consecutive games, then a er Tim Crews are killed in a March boating accident near the to desegregate the Cleveland public schools. major-league record. Despite the nationwide angst, the machin- team’s spring training home in Winter Haven, Fla. ery of government grinds on, and Jane Campbell defeats Ray- mond Pierce to become Cleveland’s first female mayor. 20151221-NEWS--17-NAT-CCI-CL_-- 12/18/2015 11:23 AM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 17

After a decade at the helm, University Hospitals Seeing through the smoke screen of a rival ballot is- PNC Financial Services Group Inc. of Pittsburgh wins Health System president and CEO Farah Walters an- sue that would have guaranteed the right to smoke the fire sale for Cleveland’s once-proud National City 2002 nounces her unexpected retirement, prompting 2006 in some public places, Ohio voters pass a statewide 2008 Corp. As the world financial system teeters on the civic soul-searching about the dearth of women in public smoking ban by a healthy margin. Almost 60% brink, National City — unable to surmount a recent high-profile leadership positions. As Walters begins support the measure, which affects every workplace history of toxic subprime loans — yields to its fate. packing, Dr. Edward Hundert arrives to assume the pres- in the state. Locally, there’s an airing-out in many a C- The merged bank will go forward without National City idency of Case Western Reserve University. His tenure will end suite. At Case Western Reserve University, the revolving door to CEO Peter Raskind, who will later try to right another foundering less than four years later. The president who succeeds Claire Van the president’s office spins again as Dr. Edward Hundert resigns ship: the Cleveland schools. Two other newsmakers have a very Ummersen at Cleveland State University is both new and famil- less than two weeks after losing a no-confidence vote by the fac- trying year. County Commissioner Jimmy Dimora and Auditor iar: Michael Schwartz led Kent State University for nine years be- ulty of the College of Arts and Sciences. Stability will come in 2007 Frank Russo emerge as primary targets of federal investigators, fore trading the Flashes’ blue and gold for the Vikings’ green and with the hiring of Ohio State University provost Barbara Snyder. who swam county offices and officials’ homes in a massive pub- white. Off campus, proponents push for a new convention center The beleaguered Cleveland public schools tap Toledo schools su- lic corruption probe. Ultimately, both men will wind up behind bars. for Cleveland. There’s more progress in University Circle, where a perintendent Eugene Sanders as the new CEO. He succeeds Bar- Conversely, two local pols leave positive legacies: Cleveland City coalition led by former Steris Corp. chairman and CEO Bill Sanford bara Byrd-Bennett. There’s turnover, too, in economic develop- Council’s Fannie Lewis, the heroine of Hough, and U.S. Rep. is driving creation of BioEnterprise Corp. to grow area health care ment ranks: Tom Waltermire takes the helm at Team NEO and Stephanie Tubbs Jones pass away. It’s not all gloom and doom, companies and commercialize bioscience technologies. At Cleve- Frederick Nance steps up as chairman of the Greater Cleveland though. The Greater Cleveland Regional Transit Authority’s $200 land Hopkins International Airport, the long-awaited second run- Partnership. Amid all these leadership shuffles, it’s refreshing to million HealthLine begins running on Euclid Avenue, fanning hopes way finally opens. The extreme-sports Gravity Games bring more honor a paragon of consistency — and longevity. Cleveland artist of a brighter future for the neighborhoods that line its route from high flyers to North Coast Harbor, with a $25 million economic im- and industrial designer Viktor Schreckengost turns 100 in June, Public Square to University Circle. The Cleveland Museum of Art pact. Games officials are so thrilled with their reception, they an- and more than 120 venues across the country salute him by reopens its renovated 1916 building, marking the end of the first nounce the event will return in 2003. showcasing his work. phase of its ambitious $350 million expansion and renovation pro- ject. A week after the museum’s new East Wing opens a year lat- er, Director Timothy Rub will resign to lead the Philadelphia Muse- um of Art. A long drama ends as biopharmaceutical darling Athersys Inc. — pursued at one time by three out-of-state suitors — As the economic downturn drags on, a wave of lay- 2003 opts to stay in Cleveland. In the “old” economy, Internation- offs and pay cuts sweeps through local workplaces. al Steel Group, buyer of the idled steelmaking assets of 2009 Another hangover, this one from the ongoing coun- bankrupt LTV Corp., is creating jobs and producing steel in a ty corruption investigation, prompts voters to ap- remarkable turnaround. The Northeast Ohio business and prove a government reform issue touted by the busi- civic leaders who launch Team NEO aim for additional suc- ness community. Greater Cleveland Partnership cess stories, though their goal of economic development president and CEO Joe Roman is among the most vocal advocates through regional cooperation has always been a tough sell of the proposal to replace the three commissioners with an elect- locally. The organization names as its first president Robert ed county executive and an 11-member county council. Cavaliers Farley, former executive vice president of the Forth Worth owner Dan Gilbert also scores at the ballot box as voters adopt a Chamber of Commerce. Civic boosters are powerless to help constitutional amendment that will allow him and his partner, when an Aug. 14 blackout darkens parts of the Northeast, Penn National Gaming Inc., to develop a casino in Cleveland. De- Midwest and Ontario, Canada, prompting questions about spite the glut of discouraging headlines, talented people see op- FirstEnergy Corp.’s reliability and its apparent role in the his- portunity here: Ronald Berkman, a high-ranking administrator at toric outage. On a brighter note, newcomers take the reins Florida International University, is named president of Cleveland at two local anchors: Thomas Zenty III, president and CEO of State University. And a national search culminates in the choice University Hospitals Health System, and Ronn Richard, suc- of Pennsylvania economic development official Rebecca Bagley cessor to Steven Minter in the top job at the Cleveland Foun- as president of the technology advocacy organization NorTech. dation. But a recent high school graduate from Akron steals Even President Obama drops by, albeit not for long. He’s here to the show: LeBron James, the No. 1 pick in the NBA draft, is laud the Cleveland Clinic model as the fight for health care reform

Marc Golub now a Cleveland Cavalier. gears up.

Can you say “image problem”? In what one columnist With a presidential election looming, Cleveland again A subprime mortgage meltdown begets a wave of calls “the Rushmore of basketball hubris and narcis- takes center stage. The October “Race at Case” foreclosures that radiates from Cleveland to tony 2010 sism,” LeBron James announces in an ESPN special 2004 pits incumbent Dick Cheney against Sen. John Ed- 2007 suburbs like Solon. The resulting credit crunch that he will leave the Cavaliers and join the Miami wards in the campaign’s only vice presidential de- spreads from residential to commercial real estate. Heat. All will be forgiven when the region’s prodigal bate, hosted by Case Western Reserve University. But Beachwood real estate developer Chris Semarjian son humbly returns home in 2014. Going the opposite There’s no debate that Cleveland Clinic heart surgeon and his partner, Stuart Lichter, chairman of California- way is Ed FitzGerald, who wins election as Cuyahoga County’s first Delos (Toby) Cosgrove is a worthy successor to the Clinic’s retir- based Industrial Realty Group, find plenty of demand for industrial executive, only to crash and burn in 2014 when, amid a welter of ing chairman and CEO, Dr. Floyd Loop. In philanthropy, the void spaces like the vacant Ford Motor Co. Assembly Plant in Lorain, one unsavory allegations, he loses the governor’s race to incumbent left by the death of developer Bart Wolstein is filled by his wid- of several properties they purchase and redevelop for leasing. An- John Kasich. With the LeBron free agency drama ended, Cleveland ow, Iris, with a $6.25 million gift to Cleveland State University. other dynamo is new Ohio Attorney General Marc Dann, who earns has a new source of angst in the planned union of its dominant Just as people come and go, so, too, do organizations. The national headlines for, among other things, filing lawsuits related airline, Continental, with United Airlines. Mayor Frank Jackson Greater Cleveland Growth Association, Cleveland Tomorrow and to the subprime mortgage imbroglio. Dann will resign in 2008 after vows to protect the city’s interests, but there’s not much he, the Greater Cleveland Roundtable merge under the banner of the just 17 scandal-plagued months in office. In county government, business community or frequent fliers can do four years later new Greater Cleveland Partnership, to be headed by Eaton Corp. the commissioners vote 2-1 to hike the county’s sales tax from when the merged airline de-hubs Cleveland. Over on the lakefront, chairman and CEO Alexander Cutler. And the new Fund for Our 7.50% to 7.75% to pay for a new convention center — even as that William Friedman is tapped as the new head of the Cleveland- Economic Future debuts, pooling money and expertise from 56 vision expands to incorporate a medical mart. No medicine can Cuyahoga County Port Authority. He succeeds Adam Wasserman, corporations and philanthropic organizations intent on improv- ease fans’ pain as the San Antonio Spurs sweep all four games to who resigned under a cloud of concerns about the authority’s fi- ing the regional economy. Of course, there are a million other sto- spoil the Cavaliers’ first appearance in the NBA Finals and the Indi- nancing and expansion plans. Retiring CEO Robert Keegan makes ries in the naked city, and one of them unfolds in June, when ans fall one game short of a World Series appearance. Small won- a smoother exit in Akron, where he’s credited with reviving some 2,800 people answer the call to pose au naturel in photog- der that liquor sales in Ohio have increased for eight straight years. Goodyear Tire & Rubber Co. during his seven years in the top job. rapher Spencer Tunick’s large-scale nude shoot at the East 9th Street Pier. Is it art? That’s debatable.

In Brook Park, Dr. Julius Earls announces he’ll retire as director of NASA Glenn Research Center, which is 2005 temporarily threatened with the loss of 700 jobs. There’s better news at another federal agency: With a huge assist from U.S. Rep. Steve LaTourette, who doesn’t even represent Cleveland, a commission revers- es a Defense Department decision to close the Defense Finance and Accounting Service’s downtown office. Not only are 1,100 jobs saved; the DFAS office is scheduled to add jobs by the end of 2008. Other big-time winners include Cleveland City Council president Frank Jackson, who unseats one-term Mayor Jane Campbell, and Quicken Loans founder and chairman Dan Gilbert, who buys the Cavaliers from Gordon Gund and promptly reveals he’ll rename Gund Arena. Cue The Q! Two developers score big, too: Mitchell Schneider, CEO of First Interstate Properties Ltd., overcomes strident opposition to a planned Walmart supercenter to rescue his proposed Steelyard Commons shopping center pro- ject. And Scott Wolstein moves forward with his $230 million res- idential/office/retail project to restore life to the dormant East Bank of the Flats. Meanwhile, the father-and-son team of Rick and Ari Maron, having transformed once-moribund East 4th Street with restaurants, clubs and housing, trains its sights on a few ramshackle buildings around the corner on Euclid Avenue. Getty Images 20151221-NEWS--18-NAT-CCI-CL_-- 12/18/2015 11:24 AM Page 1

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First there are eight, then six, then four, then two. 35 YEARS OF NEWS & NEWSMAKERS: 2011-2015 Ultimately, Cleveland is the sole survivor in the mul- 2014 ticity frenzy to land the 2016 Republican National Convention. The July announcement sparks a race With ground broken on the Mall for Cleveland’s con- Affirming that The Plain Dealer has seen the future against the clock as civic planners scramble to com- vention center/medical merchandise mart, Mayor and it is digital, publisher Terrence Egger announces plete ambitious projects such as the redesign of Public 2011 Frank Jackson tells Crain’s the benefits from such 2013 the newspaper will scale back home delivery and Square and construction of the Hilton Cleveland Downtown be- projects will be short-lived if the community fails to drive readers to its online edition. New Browns own- fore an estimated 50,000 convention goers descend. More imme- deal with its struggling school systems. In the Cleve- er Jimmy Haslam reclaims his job as CEO of his fami- diately, Cleveland and Akron jointly host Gay Games 9. Thomas land schools, there’s turnover at the top again as CEO ly’s Knoxville, Tenn.-based business, Pilot Flying J. He may Nobbe, Cleveland-based executive director for the event, is Eugene Sanders announces his retirement. The district names its have second thoughts when the FBI raids the truck stop chain on thrilled by the bottom line: 20,000 visitors, a $52 million econom- chief academic officer, Eric Gordon, its new CEO. In the private tips it defrauded commercial customers of rebates. Other exec- ic impact and an invaluable amount of goodwill. In Brownstown, sector, the corner office at KeyCorp passes from Henry Meyer III utives have a better year. At Cuyahoga Community College, Dr. Johnny Manziel mania rekindles hopes and fills cash registers, but to Beth Mooney, the first woman CEO of a top-20 U.S. bank. For- Jerry Sue Thornton’s retirement caps 21 years at the helm; Dr. the rookie quarterback has a baptism by fire both on and off the est City Enterprises Inc. also departs from tradition, elevating Alex Johnson, former head of the college’s Metropolitan Campus, field. Still, Cuyahoga County voters extend the sin tax for 20 years David LaRue to president and CEO; he’s the first non-member of succeeds her. In its quest for a CEO to replace Mark Moran, the to pay for renovations and upkeep at Cleveland’s three pro sports its founding family to head the company. East of those downtown MetroHealth System stumbles out of the gate, announcing a suc- palaces. Not to be overshadowed, the Playhouse Square Founda- C-suites, Cleveland Clinic’s decision to shutter Huron Hospital trig- cessor who then backs out. The hospital system regroups with tion fires up the world’s largest permanent outdoor chandelier gers condemnation from U.S. Rep. Marcia Fudge and other local the appointment of Dr. Akram Boutros, who plunges head first above East 14th Street and Euclid Avenue. Beyond the footlights, politicians. To the west, American Greetings Corp. announces that into the job with ideas for an overhaul of MetroHealth’s aging main Armond Budish is elected Cuyahoga County executive. And San- Westlake is the winner in the derby for the company’s world head- campus. And the spanking-new Cleveland Convention Center and dra Pianalto retires as president of the Federal Reserve Bank of quarters, to be built at Crocker Park. Send a sympathy card to adjacent Global Center for Health Innovation — quite a mouthful, Cleveland and is succeeded by Loretta Mester from the Philadel- Brooklyn, AG’s corporate home for 50 years. that new name for the medical mart — opens. phia Fed.

Horseshoe Casino Cleveland general manager Mar- Buckeye State voters didn’t like the idea of limiting the cultivation of legal marijuana to 10 growers, so they soundly reject- cus Glover reports that nearly 500,000 guests ed Issue 3, which would have legalized the growing and sale of marijuana for medicinal and recreational uses. On the na- 2012 came through the doors in the new venue’s first 2015 tional front, the country mourns the passing of an icon as former U.S. Rep. Louis Stokes dies at 90. Almost two weeks be- month. Ironworkers top off the Ernst & Young Tow- fore Stokes’ passing, Cleveland warms up for next year’s Republican National Convention by hosting the first GOP presidential er on the Flats East Bank. The Greater Cleveland candidates’ debate. Among the 10 hopefuls onstage at Quicken Loans Arena is Gov. John Kasich, a late enlistee in this cav- Aquarium opens in the Powerhouse on the West Bank. alry charge. The city shines, though deplorable road conditions and orange barrels worry locals. The Jackson administration fast- The former county commissioners’ fishy purchase of the Amer- tracks road improvements, but there’s no chance of completing the planned pedestrian bridge from the Mall to the lakefront in time for itrust complex in 2005 has County Executive Ed FitzGerald eager the big GOP fest. Still, the move to the waterfront continues, led by diverse elements such as the rowing community and the Cleveland to sell the white elephant, as well as other properties, and con- Metroparks. On terra firma, brothers Jeff and Tom Heinen deviate from their suburban pattern to open their much-anticipated grocery solidate scattered county offices in a single location. The new store in the rotunda of the historic building at East 9th Street and Euclid Avenue that once housed Cleveland Trust Co. The new Heinen’s county administrative headquarters, developed by Geis Cos., will is part of a flashy hotel and apartment complex, The 9, developed by another brother duo: Fred and Greg Geis. The resurgent LeBron open at Euclid and Prospect avenues in 2014. Less flashy, but James-led Cavaliers don’t fare quite as well. Decimated by injuries, they lose the NBA Finals to the Golden State Warriors. even more significant, is Cleveland Mayor Frank Jackson’s plan to transform the city’s schools, in part by expanding the number of high-performing district and charter schools, closing failing schools, and loosening inflexible rules on teacher tenure and se- niority. GOP Gov. John Kasich embraces the Democratic mayor’s plan and, with an assist from the Greater Cleveland Partnership, the General Assembly passes enabling legislation. Cleveland Teachers Union president David Quolke buys in and voters ap- prove a 15-mill school levy in November.

TIMELINE RESEARCHED AND WRITTEN BY TERRY PEDERSON Getty Images

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CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 19

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THE BIG STORY CREDIT IS DUE A BRIGHTER JUMP TO IT AIR CHARTER SERVICE FUTURE Security funding for the The Ohio Development JumpStart Inc. once again AIRCRAFT MANAGEMENT Republican and Services Agency awarded Congress is poised to pass has money to invest in Democratic presidential $37.8 million in Ohio a major spending bill that high-tech startup nominating conventions — Historic Preservation Tax would include full funding companies. With $12.5 $50 million each — will be Credits to 34 applicants for a NASA program that million in fresh state included in the fiscal year planning to rehabilitate 55 funds major programs at funding, the nonprofit is 2016 appropriations bill historic buildings. Among NASA Glenn Research bringing back its original expected to clear Con- projects under the Center. The Senate version investment fund, which gress and to be signed by $5 million cap for tax of the bill had targeted has been out of cash for a President Barack Obama credits, four Cleveland that program for significant few years now. It’s also before Washington’s projects received state cuts. If those provisions ready to launch another Christmas break. The OKs. Among them was the had passed, NASA Glenn fund that will target tech federal funds help the Cleveland Athletic Club, could have faced a $60 startups led by women host communities cover which earned $5 million million budget cut — which and minorities throughout the cost of additional in tax credits for a would have amounted to Ohio — as well as those Northern Ohio’s Premier Air Charter Service security hardware and rehabilitation into 175 about 10% of its annual willing to move to the overtime pay for local law apartments over a budget. The Senate version state. Those funds both Serving the area with 10 Jets enforcement that will be first-floor restaurant. of the omnibus spending will receive $5 million • 25-HOUR JET CARD NOW AVAILABLE • required to protect the Downtown’s Union Trust bill would have cut NASA’s through the Ohio Third gatherings of politicians Building at 925 Euclid won Space Technology program Frontier economic www.FlySkyQuest.com • 216-362-9904 and the delegates. a tax credit aimed at to fund another NASA development program. Congress has awarded the “catalytic” projects, program based in Maryland. The Third Frontier [email protected] grants to the conventions earning $25 million. Had the Space Technology Commission also awarded since the Sept. 11, 2001, program been cut, Glenn $2.5 million to help terrorist attacks. would have had to scale JumpStart launch a new back its Solar Electric for-profit investment fund Propulsion program, which that will target more has been a major focus for mature tech startups. Glenn in recent years. JustCommercial Got Banking Easier Meet John Solich. Whether you operate a commercial business or have owner-occupied and investment real estate needs, John can help you accomplish your financial goals. He has 17 years banking experience in Cuyahoga, Geauga and Lake Counties. His experience, education and local decision making capabilities will prove to be the winning combination to meet your needs Custom Publishing Section as your company moves into 2016. DECISIONS Contact John directly in our Chardon office at 440-632-8142. TACKLING THE TOUGH CHOICES OF CARING FOR YOUR AGING LOVED ONE See what a difference John can make to your bottom line! This custom publishing section will serve as a resource and examine all the issues that come with becoming a caregiver. ISSUE DATE: March 28 | AD CLOSE: January 28

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PAGE 20 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS Business of Life

TRANSITIONS: Jeff and Lori Kolenich Crain’s occasional look at people who are forging a new path. Tell us about your story: [email protected] Getting up to speed on being their own boss

BY CHUCK SODER

They weren’t graphic designers. And they’d never started a business before. But Jeff and Lori Kolenich took the plunge anyway. After all, what did they have to lose? Well, OK, they did put their retirement savings on the line when they opened the Westlake branch of SpeedPro Imaging — a company that makes giant graphics. You know, like the huge slot machine image that adorns the Horseshoe Casino Cleveland parking garage (which is right across from the Le- Bron James mural). But the opportunity cost of starting a business started drop- ping dramatically after the stock market crashed in 2008. In De- cember of that year, Lori was laid off from a project manage- ment position at American Greetings. She got another job, but within a year she fell victim to another round of staff cuts. Jeff knows her pain. He was laid off from a marketing posi- tion at American Greetings in January 2011. Sure, they could’ve kept looking for new jobs, but potential employers suggested that they’d probably have to take a pay cut to get them. So why not become one of those employers? Jeff had been interested in starting a company since his days at Bowling Green State University. He was one of the first employees at a long-standing cheese steak restaurant called Mr. Spots, and he originally wanted to open another Mr. Spots location in the Cleveland area after graduating in 1987. But he had bills to pay. So he got a job. Lori said that she and Jeff liked the idea of being their own bosses and building something that was their own. A few of their former colleagues had started franchises, which seemed like a smart way to go for a couple with no expe- rience starting businesses. So they met with a franchise consul- tant from FranNet who introduced them to SpeedPro Imaging. SpeedPro, which is based in the Denver area, didn’t care that they weren’t graphic designers, but the company liked the fact that they both had relevant business experience. In turn, Jeff said the idea of “bringing people’s brands to life in a large way” sounded like fun. And SpeedPro would train them and provide all the necessary equipment to get started — including their office furniture. Above, Jeff and So, the Koleniches, who are in their 50s, took a chance. Lori Kolenich. With money from their 401(k) plans, they started the compa- At right and ny in April 2011. “The business is now our retirement account,” Jeff said. above right, two “We’re banking on ourselves if you will.” of the projects So far, things have gone pretty well. They’ve hired three em- that Jeff and ployees, including two graphic designers, and they’ve regular- Lori have taken ly exceeded their sales goals. Of course, it helped that they were on through able to quickly land a few big clients, like the casino and the SpeedPro Greater Cleveland Aquarium (if you’ve seen the mural of the Imaging. squid-like Kraken sea monster, you’ve seen their work). It may be a while before they’re bringing home as much (Contributed photos) money as they used to. They’re still paying off the costs in- volved in starting the business, and they’re reinvesting their profits. But they’re OK with being patient, Jeff said. “It’s got to be a different mindset than when you’re in the corporate world,” he said. EMPOWERING NORTHEAST OHIO BU 20151221-NEWS--21-NAT-CCI-CL_-- 12/18/2015 11:27 AM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 21

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FACEBOOK.COM /CRAINSCLEVELAND TWITTER.COM “The business is now our /CRAINSCLEVELAND retirement account. We’re banking on ourselves if you will.” INSTAGRAM.COM — Jeff Kolenich /CRAINSCLEVELAND USINESS FOR MORE THAN 35 YEARS. 20151221-NEWS--22-NAT-CCI-CL_-- 12/18/2015 1:04 PM Page 1

PAGE 22 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch

Anne Owings Ford is a veteran of the legal industry.

Her résumé includes time with major law firms including McDonald Hopkins and Jones Day, in addition to work as a judicial law clerk at both state appellate and federal trial levels. Today, Ford serves as president of the Cleveland Metropolitan Bar Association, a position she was elected to by the nonprofit group in June. She spends much of her time assisting fellow lawyers and furthering goals of the bar association, which includes nearly 6,000 members. Considering her leadership role with the bar during a continued period of flux and general consolidation in the overall legal industry — and the fact she’s no longer beholden to a specific firm — I decided to meet with Ford to discuss changes in the field and some of the challenges facing both law firms and young attorneys in today’s competitive market. — Jeremy Nobile Anne Owings Ford LAW

Companies have dialed back Speaking of having enough Considering the challenges fac- legal budgets in the long wake work, how can the industry ing recent grads, what other ad- of the recession. Is there a new better prepare tomorrow’s vice do you give young lawyers model for how corporate clients lawyers at a time in which firms trying to gain experience? approach legal services? aren’t hiring new grads like they Get experience in your field — LUNCH The vibe The meal used to? Corporate clients are already even though that isn’t easy SPOT Quintessential Ameri- Filet croissant and rice; purchasing legal services in very Providing real-world training to because so many law firms are can-inspired casual Chicken cordon bleu different ways from the law firm recent law school graduates is paring back on the number of new The Courtyard Café café with very fast croissant and fries billable hour model of the past going to require creativity and lawyers they hire. Take on pro 7600 Chippewa Road, service regardless of few decades, and in-house legal substantial effort. Law schools, bono representations, if only so Brecksville the busy midday departments are increasingly bar associations and legal that you can truthfully say you’ve The bill (440) 526-9292 crowd. Large portions, growing to include niche employers must work together to appeared in court or drafted great lunch spot. $29.54 + tip specialists the company might provide either real world, pro bono incorporation documents. It does- have a need for. Another model legal services or drills using a n’t have to be full-time. Between I’ve seen involves the distribution hypothetical case, so that new the Cleveland bar association and of legal projects to small firm or graduates can experience the the Legal Aid Society of Cleveland, solo practitioners who complete practical skills of the law. The you have a good chance of Voice of similar work at a substantially (Cleveland Metropolitan Bar identifying a pro bono opportunity Reason lower cost. There is no question Association’s) New Lawyer Boot that will be relevant for you. FIG. 6-C that larger law firms, particularly Camp is a major step in this direc- those that increase their billing tion. It seems clear that adding Hero flexibility and work to provide practical skills to today’s law It sounds like pro bono work is unusual value for clients’ money, school curriculum is impracticable, something you advocate all Problem will have plenty of work to do. But because the Ohio bar examination lawyers seeking out then, yes? Solver the diversity of options that tests substantive knowledge of Yes. We must sometimes practice companies and even individuals the law. We will have to develop a law on behalf of those who can’t are now exercising is fresh, new program to provide practical and pay for it lest we become the and exciting for many. procedural training shortly after antithesis of this country’s ideal: a licensure, or risk losing an entire profession whose services are generation of lawyers. available only to the rich. If that ever happens, we must give up Golf our monopoly on the law. In Partner Tax Law Although hiring has been scaled back, diversity has been a Cleveland, between the CMBA and Expert longstanding issue in the legal industry. What can be done to realize Legal Aid, lawyers have numerous more diversity in the ranks? opportunities to serve the needy Start earlier. We have seen that vying to offer positions to diverse in our community. Whether a candidates upon graduation from law school is a “too little, too late” lawyer wants to provide incorpo- Consultant proposition. The proportion of students who are not “typical” lawyer ration advice to a nonprofit, material entering law school and passing the bar is far too small, and represent a tenant in housing legal employers are fighting one another over these candidates in an court or help with expungement Who says you can’t be all things to all clients? effort to demonstrate their commitment to diversity. The CMBA has of an eligible offense, there is an You’re good: on the financial front and on the back nine. But sometimes opportunity to do precisely that addressed this problem by pushing the recruiting effort back all the way a client’s charitable giving issue is both urgent and complex. We can help. into middle school. The goal is to increase the total number of diverse and more. Further, stretching students with a vision of themselves in higher education, and then in a one’s legal wings to work in an We’re Akron Community Foundation, and we have all the charitable career in law, by nurturing and supporting these students along the way. unfamiliar field can be energizing. resources you need — cost free — before your 3:45 appointment. From CRUTs to IRAs, we’ll keep you looking good in front of even the most demanding client. So be a hero and call us. Your client — and the community — will thank you. THREE THINGS: WHAT ARE YOU ANY MUSICAL DO YOU PLAY ANY PHILANTHROPY FOR READING? PREFERENCES? INSTRUMENTS? THE BUSINESS SAVVY. The second book in Patricia Primarily baroque. Favorite Oboe and piano, though Download our free guide at akroncf.org/hero. Cornwell’s Dr. Kay Scarpetta composers include Bach, I mostly play piano Or, call 330-436-5610. series, “Body of Evidence.” Mozart and Marcello. nowadays. 20151221-NEWS--23-NAT-CCI-CL_-- 12/18/2015 11:28 AM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE 23

ADVERTISING Crain’s has moved its complete list of appointments and promotions to www.crainscleveland.com/peopleonthemove.

Showcasing Northeast Ohio job changes and board appointments. These paid People on the Move listings, publication is guaranteed in print, online and in a weekly e-newsletter.

ACCOUNTING Paul Weisinger, CPA/ABV, CVA Kathryn Stiwald, CPA, QuickBooks ProAdvisor Executive Board Member/Treasurer, Board of Directors, Easter Seals Northern Ohio Autism Society of Greater Cleveland Walthall CPAs Walthall CPAs Easter Seals helps individuals with disabilities and special needs, and their "We are thrilled to have Paul as part of the Executive Board,” stated Eileen families, live better lives. Stiwald will help develop policies and goals for the Hawkins, president of ASGC. “Having dedicated people like Paul will contin- organization, as well as be active in the programs, performance, and ue to help us grow and serve the autism community,” she concluded. A fundraising. A graduate of Kent State University, Stiwald earned a BBA. She graduate of Cleveland State University, Weisinger is a member of the AICPA, is a member of the AICPA and The OSCPA. Stiwald also belongs to Main The OSCPA, and the National Association for Certified Valuator and Analysts. He belongs to The Street Amherst, the Lorain County Chamber of Commerce, and the Mercy Foundation of Lorain Union Club of Cleveland and sits on the Advisory Board of the Academic Support Center for Stu- County Planned Giving Advisory Council. She also serves as the chairperson for the Amherst Ro- dents with Learning Differences at Notre Dame College. He heads Walthall’s business valuation tary Club?s Youth Exchange Program. niche. Judith Mondry, CPA, CVA ARCHITECTURE Chapter Director - Community Outreach Committee, Anne M. Hartman, RA CREW Cleveland Director of Operations, Cleveland Walthall CPAs Moody Nolan As community outreach director, Mondry will be responsible for fostering good relations within the Greater Cleveland Community, promoting further Moody Nolan welcomes Anne Hartman as the new Director of Operations name recognition for CREW Cleveland, creating fundraising and hands on for the Moody Nolan Cleveland office. In addition to her new leadership role learning experiences for community service and scholarship, and mentoring in Cleveland, Anne will continue to oversee numerous education projects young women interested in careers in the commercial real estate field. Mondry is a certified valu- throughout Northeast Ohio, including the New JFK High School and Charles ation analyst and heads Walthall?s real estate niche. She also belongs to the AICPA, The OSCPA, Eliot K-8 School, the Cleveland Heights-University Heights City School and the U.S. Green Building Council. Mondry earned her BSBA from John Carroll University. District, the Monticello and Roxboro Middle Schools and the new Cleveland School of the Arts. 20151221-NEWS--24-NAT-CCI-CL_-- 12/18/2015 11:29 AM Page 1

We make it our business to know your business. That’s why these local organizations recently chose FirstMerit.

Hawken School The Elyria Manufacturing Corporation Stafast Products, Inc. 118 Development, LLC Bank Qualified Bond Financing Acquisition and Debt Working Capital Financing Multi-Family Construction Financing and Revolving Line of Credit Recapitalization Financing

The American Eagle Mortgage Co., LLC Arrow Tru-Line, Inc. Bentley Reserve One, LLC Oberlin College Working Capital and Senior Secured Credit Facility; Multi-Family Construction; Debt Recapitalization Financing Recapitalization Financing Term Financing Taxable Term Loan Financing

SP Franklin, LLC Reddy Equipment, Inc. T&K Logistics, Inc. Cascade Management Services, Inc. Multi-Family Redevelopment Equipment Financing and Debt Financing Construction Financing Working Capital and Equipment Financing Working Capital and Real Estate Financing

Space Comfort Co.

Resource Material Handling and Recycling, Inc. Space Comfort Co. Secure ITADS, LLC Lakeland Management Systems, Inc. Real Estate, Equipment and Working Capital and Debt Real Estate Financing Working Capital and Real Estate Financing Working Capital Financing Recapitalization Financing

Libertytown Residential, LLC

Libertytown Residential, LLC Prestwick Ridge One, LLC Montville Plastics & Rubber, LLC Winar Connection, Inc. Apartment-Retail Lifestyle Center; Multi-Family Construction; Acquisition, Working Capital FirstMerit-led Syndicated Construction Working Capital, Equipment Term Financing and Equipment Financing Financing and Real Estate Financing

D. Todd Russell, DDS and Tanne Morgan Warehouse Apartments, LLC/ Investments, LLC National Terminal Warehouse Apartments Cotsworks, LLC Beckett Gas, Inc. Tanne Investments, LLC Multi-Family Acquisition, Working Capital, Equipment and FirstMerit-led Syndicated Working Capital and Real Estate Financing and Term Loan Financing Construction Financing Equipment Lease Financing

Nerone & Sons, Inc.

S & V Industries, Inc. WXZ Retail Group/ Kent Summit, LLC Nerone & Sons, Inc. Ashland, LLC; Canton RA, LLC Senior Secured Credit Facility; Student Housing Construction Financing Refinancing Working Capital Financing Retail Construction Financing

Allfasteners USA, LLC Mount Vernon Gateway, LTD Crescent View Apartments VA, LLC Burton Scot Contractors, LLC Working Capital, Equipment Retail Construction Financing Multi-Family Acquisition Financing and Real Estate Financing Working Capital and Equipment Financing

TO LEARN MORE, CONTACT: Sean Richardson, President and CEO, FirstMerit NorthCoast Region, at 216-802-6565 or sean.richardson@firstmerit.com.

Member FDIC 4954_FM15 firstmerit.com 20151221-NEWS--9-RG1-CCI-CL_-- 12/18/2015 1:35 PM Page 1

VOL. 36, NO. 51 DECEMBER 21-27, 2015

Philanthropy THE AKRON EDITION Business of Life LeBron James Family Foundation investing in Akron’s young students Career transitions P. 6 Husband and wife are betting on themselves Arts ArtsNow is boosting Akron’s culture scene P. 20-21 P. A1 Voices Technology Entrepreneurship is not Squawqr is making some noise a solo endeavor P. A3 CLEVELAND BUSINESS P. A6

East End Residencies might be tip of iceberg More buildings await reinvention at former Goodyear complex

BY STAN BULLARD

[email protected] @CrainRltyWriter

The lights are back on at the former Goodyear Hall in Akron — and may even snap on and off more at night than in the past. That’s because people are living in the six-story building at 1220 East Market St., which has been repurposed from former offices to the East End Residences. The apartment building is the second project in Downey, Calif.-based Industrial Realty Group’s massive remake of the former corporate headquarters of Goodyear Tire & Rub- ber Co. The first addition was a Hilton Garden Inn that opened in 2014 on East Market, a year after IRG finished a new global headquarters for the tire maker at 200 Innovation Way. Although both the apartments and hotel are multimil- lion-dollar projects, they are the appetizers before the main course. On the south side of East Market from Goodyear Hall are four more buildings with a total of 1.4 million square feet of space that is waiting to be reinvented and repopulated in what is forecast as a $167 million development. However, the residential aspect of the development is the most trailblazing part of the project. Goodyear’s stomp- ing grounds for the past century are primarily a business environment for the rubber maker and others. Big-time planning Single-family homes in the nearby Goodyear Heights neighborhood were developed to house workers at the company’s former tire and rubber plants. There’s been no dominated in 2015 residential project of scale there in decades. The plethora of student housing and construction the Page 13 past half-decade in downtown Akron are blocks away in the SEE GOODYEAR, PAGE A4

Entire contents © 2015 by Crain Communications Inc. 35 years of news & newsmakers Pages 14-18 Lisa Lorek 20151221-NEWS--1-RG1-CCI-CL_-- 12/16/2015 2:30 PM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE A1

New ArtsNow group is helping Turning steer the city’s cultural revival

Rubber City? ident Christine Mayer. “But there was little in the way How about Art Town? of cohesiveness, coordination or communications Because while Akron doesn’t have many people with broad audiences.” Akron into making tires these days, it’s sure got artists. And late- Or as the foundations put it in their report: “There’s ly, at least, it’s also got its arts organizations working a disconnect between arts and culture sector percep- hard to engage more residents. tions of itself and the public’s perception. ... Providers While no one thinks the arts will ever replace the of arts and culture see offerings as deep and varied, but tire industry’s historic employment, backers are hop- the market doesn’t necessarily agree. African Ameri- ing a strong arts and culture scene will retain and at- cans don’t see what’s there for them, and many poten- tract talent and bolster economic development. tial consumers don’t participate, both high income The city’s in an artistic renaissance that started two ‘power types’ and the population at large. Outsiders to Art Town years ago, when Akron’s GAR and John S. and James the sector see it as disorganized and not unified — that L. Knight foundations took stock of the city’s arts and is, not a sector but rather distinct organizations. The cultural assets and how they were working. sector does not seem to have great awareness of its They found an arts scene in need of work and, own ‘big picture.’ ” more importantly, leadership. Their January 2014 re- “We found out that things weren’t quite as good as port was both a wake-up call and a launch party for we were hoping,” said Nicole Mullet, who at the time BY DAN SHINGLER Akron arts, even though the report described a city of the report was an educator working at the Univer- with plenty of art, artists and individual institutions. sity of Akron. “The community as a whole was not re- [email protected] “In our research, we counted 608 artist and arts- ally aware of what we had . . . We know that we have @DanShingler oriented organizations,” said GAR Foundation pres- SEE ARTS, PAGE A8 20151221-NEWS--2-RG1-CCI-CL_-- 12/16/2015 2:31 PM Page 1

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CONFUSED ABOUT YOUR INVESTMENTS? Sewer project could bring -Disappointed by your returns? -Heard from your financial advisor lately? vibrant neighborhoods - Concerned about these volatile stock markets? BY DAN SHINGLER

[email protected] @DanShingler If these issues are troubling you call us for a free consultation and learn about our time tested solutions. Dig this: In the not-too-distant fu- ture, Akron will no longer dump its toilets into the rivers that bless the city — the Cuyahoga and smaller, aptly named Little Cuyahoga. Michael Karder That’s what has typically taken (330) 990-7066 place when there was a hard rain [email protected] that strained the city’s antiquated 10409 Wisner Road, Bldg. A combined sewer system. Kirtland,Ohio 44094-9594 And dig this, too: That will not only help clean up the rivers as they send their waters winding their way to Lake Erie, but it will also clean up some waterways of Akron neighbor- hoods, some of which are beautiful- ly situated along the Towpath Trail and a short walk from downtown. Akron officials hope those areas will become some of the city’s best neighborhoods in the future. Today, they’re fairly undeveloped, Akron officials break ground on work for the city’s massive tunnel. relative to the surrounding area. (Contributed photo) But before anyone can dig any of that, the city has some work to do — ceptor Tunnel will be dug by a huge and smaller separation facilities. the construction of more than a bil- machine that will more or less eat its That would leave more green lion dollars’ worth of new pipes, sep- way from a bluff near Howard Street space and more of the river valley aration racks, basins and tunnels. and the Towpath Trail to an access available for living space once it’s Much of it is built or well under in the middle of downtown. Like a cleaned up, Moore said. construction — and Akron’s sewer giant bug – a system similar to the “You’ve got land that has huge po- rates have gone up by 269% over the one used to dig the famous Chunnel tential, in my mind, for future devel- past decade. But to finish the job the between Britain and France – the opment,” he said. city has to drill one heck of a hole. machine will turn a giant drill bit “Having a large basin in the mid- It’s probably the biggest and most and slowly grind through dirt, rock dle of development is not the great- impressive hole ever dug in Ohio, and pretty much anything else that est thing, so by doing sewer separa- unless you count the canal that first gets in its way. tion and a green alternative, we made Akron into a major city. At one point, beneath Exchange wouldn’t have to build that. At a cost of more than $300 mil- Street, the tunnel will be 160 feet un- “So we’d have acres of land that lion, the milelong tunnel construc- derground, and all along its route, it can be developed with new housing tion project is Akron’s biggest ever, will be well beneath the city’s exist- or mixed use that’s right along the by at least a factor of five or six, said ing infrastructure. river. www.felberpr.com | 330.963.3664 city public service director John “Most people won’t even know “It’s a beautiful area … you see Moore. it’s going on,” Moore predicted. deer all the time and you’re half a It and the rest of Akron’s compre- The city has not yet signed a con- mile from downtown Akron. At hensive sewer overhaul stems from a tract for the machine to drill the tun- some point in time, it’s going to be federal mandate that Akron clean up nel, but once it does, it will take an incredible neighborhood.” the overflows into the Cuyahoga and about a year for it to be built specif- But in terms of major disruptions Little Cuyahoga rivers. The cost is still ically for the conditions it will find this year, or when the tunnel is actu- not firm because work will go on for beneath Akron, said city spokes- ally dug in 2017, city engineer many years. woman Michelle DiFiore. Patrick Gsellman said there won’t be Also, the city is hoping the U.S. En- A joint venture of Illinois-based much – especially considering the vironmental Protection Agency will Kenny Construction Co. and Tokyo- amount of work that will take place. DO THE allow it to replace some expensive based Obayashi Corp. will head up In fact, he said, the past year was portions of the project with less-ex- the work on the tunnel. probably far more disruptive in pensive alternatives that could On Nov. 6, the city broke ground terms of sewer projects. GOOD amount to some smaller savings. But at the site on the banks of the Little “We just completed 260 sewer re- the whole project is ultimately ex- Cuyahoga to begin the prep work. pair projects that we completed in a pected to cost up to $1.4 billion. Once the drill is built, it will bore year, so people have been seeing our YOU WANT The EPA recently gave the city into a bluff near Hickory Street by signs everywhere,” Gsellman said. some hope. On Dec. 14, the feds ap- the intersection of the Little Cuya- The city previously spent money TO DO proved three alternative wastewater hoga River and the Ohio Canal be- on other projects that would have the separation facilities that are part of fore plunging beneath the city to an biggest impact – and corrected a lot the city’s “integrated plan.” If ap- exit shaft downtown, right near the of its problems with about $20 mil- proved in its entirety, the plan would Canal Park stadium. lion in fixes over the past seven years Let us help you get there. We help business owners knock about $300 million off the or so, said mayor-elect Dan Horrigan. plan for and implement a successful exit strategy. project’s total cost and bring it down The current fixes, though they’ll to about $1.1 billion, city officials New life for area be expensive and increase residents’ Increase Value. Minimize Taxes. Protect Assets. said. The EPA has not done that, but It will likely mean some noise and sewer bills, will still be beneficial, ac- talks between it and the city contin- commotion on Hickory, but it will cording to Horrigan. ue. And the changes the EPA has ap- leave behind a neighborhood along “It’s a project we need to get done. proved will save the city millions of the river free of toilet paper and oth- We have to, but there are also long- dollars, said Moore. er signs of sewage, Moore said. term effects,” he said. Akron has never addressed its It’s a neighborhood Moore thinks He agreed with Moore that once sewer problem before, largely be- will take off once the sewage prob- the work is done, the city will have cause of the cost. At $1.4 billion, the lem is solved – especially if the city some vital new neighborhoods ripe project’s price tag amounts to more can get the EPA to sign off on some for development. than $7,000 for every man, woman changes to the current plans. “There could be a few spots like Call our Certifi ed Exit Planning Advisor, Ray Lampner: 330.572.8014 and child in the city of just under The city would like to replace five that along that river – water is at- [email protected] • www.BCGLegacyAdvisors.com 200,000 people. basins called for in the current plan tractive and people like that,” Hor- The 27-feet-wide Ohio Canal In- with green solutions like wetlands rigan said. 20151221-NEWS--3-RG1-CCI-CL_-- 12/16/2015 3:01 PM Page 1

CRAIN’S CLEVELAND BUSINESS z DECEMBER 21 - 27, 2015 z PAGE A3

Squawqr cloud apps see big growth

BY BETH THOMAS HERTZ point of exclusivity,” Kemmer ad- “There’s no content management The ease of updating the app im- hands within two to three weeks in- vised. system. If they can edit a Word doc- proves quality, Kemmer said, be- stead of, say, two to three months,” As a veteran marketer, Sue Squawqr’s technology platform is ument, they can edit their own con- cause it allows the person who is Grabowski said. Grabowski knows that businesses patent-pending. While others are tent, and they can do it from their closest to the content to be the one want to get information to their cus- building apps that reside in the phones,” Grabowski said. updating it. Diverse uses tomers where and how they want to cloud, Squawqr’s tabular structure The apps also facilitate shared Squawqr’s standard slate of fea- receive it. Digital communication is, makes it unique, Grabowski said. content management. For example, tures — which include spreadsheets, Grabowski said she and Kemmer of course, a crucial part of that, but if one person is responsible for a text, videos, contact information, have found themselves developing schedule and another person is re- blogs and links to social media — apps for a wide variety of uses. websites can be costly to build and Ease of use, cost difficult to update. sponsible for a directory, they can start at about $2,500, plus an annual For example, Aultman Medical The use of apps has grown in re- Squawqr app content is managed both have access to those docu- hosting fee. Group uses a Squawqr app for a cent years, but apps can eat up valu- via Google Docs, so clients own the ments. “That is way less than what I could physician directory. able storage space on a phone and content and they can make changes “There doesn’t have to be one build a traditional website for, and Brittany White, director of prac- require the user to regularly down- to it instantly. point person or IT person,” she said. our clients can have them in their SEE SQUAWQR, PAGE A7 load updates. While the payoff can be complex functionality, such as gaming, Grabowski finds most of her clients just want a mobile way to share information that is affordable and can be easily updated. About two years ago, a colleague showed her some mobile technolo- gy he was developing, and she knew she had found a solution to her clients’ problems. Rob Kemmer is now her partner in a business ven- ture they started in January and have named Squawqr. Uniontown-based Squawqr cre- ates apps that are based in the cloud. They appear on any device but re- trieve data only when needed, there- fore they don’t take up storage space or require updates. “They are designed primarily for the way we use mobile, which is dif- ferent than the way we use a com- puter,” Grabowski said. “We use our thumbs. We like vertical formats. We like action. We like to be able to thumb-tap and call someone or thumb-tap and get to a map. We don’t want to have to use our forefin- ger and thumb to zoom in on things we cannot read.” The apps are accessible from a URL or a QR code. In fact, QR codes are such an important aspect of the app that the letters are incorporated into the company’s name. “I believe QR codes were very mis- used early on,” Grabowski said. “People put them on things thinking they were cool, but when you scanned them in, you didn’t land somewhere that brought you the in- formation that you wanted. When you are actually using them the way that they should be used, they’re in- credibly powerful.” Squawqr lets users change QR code on the fly. For example, when a salesperson shares a catalog with a client, he or she can give them a unique QR code. Anytime the code is used to search the directory, the user obtains valuable marketing metrics. Origins Kemmer said he first became in- terested in mobile technology in 2005 when he was with a Fortune 500 company. “It was a wide-open field that was only being addressed by native apps,” he said. “I felt that a web- based solution would meet busi- nesses’ needs better by offering a more consistent presentation across multiple platforms.” He has since seen “mobile first” technology move to “mobile only.” He asks business owners that if 90% of customers are reaching them on mobile devices, why are they spend- ing a lot of money developing web- sites as a primary access point? “Attack mobile first – almost to the 20151221-NEWS--4-RG1-CCI-CL_-- 12/16/2015 3:02 PM Page 1

PAGE A4 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS AKRON GOODYEAR CONTINUED FROM PAGE A4 well said the couple has houses in city’s traditional business district. other locations but wanted some- Stuart Lichter, IRG CEO, said the thing easier to maintain than anoth- lack of new housing was striking as er single-family home. his team studied the area. Her daughter found East End Res- “You have all these people working idences for them on the Internet. there, but no one has built residen- “It’s new. And it’s convenient,” tially there for years. So do it,” Lichter Caldwell said, and noted she likes said in a recent phone interview. the cleanliness of the fitness center The idea has evolved so the East — all 3,000 square feet of it. End — the all-encompassing name The couple wanted to be close to for the Goodyear complex makeover the hospital, especially for the win- — incorporates the almost-com- ter, because her husband gets called monplace mantra nationally for re- out at night frequently in his work as development: a place to live, work a maternal and fetal specialist. and play. The former Goodyear headquar- A combination of factors led to ters may also spawn additional making Goodyear Hall, which dates housing. from 1918, into the residential com- Lichter said portions of at least ponent. another two of five buildings in the Lichter said the floors were the complex may be converted to apart- right size to create a hallway lined ments. with apartments. Smith said one of the buildings on The building also incorporates el- the opposite side of East Market ements that will allow the structure could accommodate housing on two to become a mixed-use project in its upper floors and another building own right. south of East Market could go resi- A white-columned former bank at dential. At the East End Residencies at one end of the building may serve as A key building across East Market the former Goodyear complex, a restaurant. Facilities that once is dedicated to office use because it elements of the past remain, such served plant workers can be repur- has massive floors of 1.5 acres in as the rooftop Goodyear sign. The posed into amenities for tenants and size. Smith said floors of such size units, right, come in one-, two and house businesses serving the com- are desirable for large tenants who three-bedroom layouts. A main lobby, munity, from retailers to a 1,500-seat want to be on one floor. Similarly, below left, greets residents as they she said, such floors are too large to theater. enter, and amenities such as a large efficiently repurpose as apartment Walk through the four floors of gym, below right, and a 1,500-seat apartments, and there is no clue suites. theater, bottom, are part of the they were formerly office space. Long-term, Smith said, IRG hopes complex. Carol Smith, IRG vice president, the complex can be catalytic in get- said the floors were “cubicles wall to ting other former industrial build- (SHANE WYNN PHOTOS) wall,” so they gave IRG a blank slate ings in the neighborhood converted with which to work. to housing. Inside the suites, the massive win- dows offer wide views of the city. A plan for place-making There are 30 different designs of suites arranged in one-, two- and Completing the menu at three-bedroom formats. Goodyear Hall alone, however, will The apartments, which opened in take some other property types be- April, are 74% rented, Smith said, sides multifamily. and one-bedrooms have leased A second floor is being retained faster than the larger, more expen- for office use. First-floor space in the sive two- and three-bedroom units. building will be offered for retail use, If the project were being re- such as a coffee shop. designed today, the developer would Plans call for the width of East boost the number of one-bedrooms, Market to be reduced through the she said. East End project to add more on- street parking and create an envi- ronment friendlier to pedestrians A diverse mix and retailers. However, when East End was in The former headquarters complex the planning stages, residents of the is sprawling — some 400 acres in all Goodyear Heights neighborhood — so it also includes an 80-acre par- worried about East End Residences cel that could house build-to-suite becoming additional housing for structures for additional companies. University of Akron students. IRG’s long-term plan for place- As a solution, IRG added many making suits the city plan for the two- and three-bedrooms to the area, said Samuel DeShazior, Akron mix. deputy mayor for economic devel- Today, the building has a handful opment. of students, according to Jacqueline “East End lends itself to creative Vari, East End property manager, living spaces,” DeShazior said. but is primarily home to people “If you create a market for yourself working at nearby hospitals, busi- (with housing), other things will oc- nesses and Goodyear. cur, such as grocers and entertain- “We wound up with a wide range ment and services so people don’t of age groups and backgrounds,” she have to leave the area on a daily ba- said, “with residents who are 20, and sis.” the oldest is 70.” When Vari started managing East She said the diversity of tenants End Residences three months ago, has enriched her culinary experi- she worried about how she would ence; residents have shared with her meet the many residents who had everything from Middle Eastern tea already moved in. cakes to Turkish tea. Her solution: She makes it a point Among the tenants are Dannette to be near the entrances at the end Cardwell and her husband, Dr. of the day. Michael Cardwell, who moved in Many of the residents work near- last summer from Bloomington, Ill., by, she said, so close they walk to when he took a job nearby at Sum- and from work, including at ma Health System. Dannette Card- Goodyear’s current headquarters. 20151221-NEWS--5-RG1-CCI-CL_-- 12/16/2015 3:03 PM Page 1

Wherever I go, I always talk about being from Akron. Without those five letters, I wouldn’t be who I am today.

That’s why the LeBron James Family Foundation has partnered with The University of Akron to give everyone who

graduates from our program the chance to get a full scholarship to attend UA.

That’s our dream.

Whatever your dream is, whatever your passion is, you can accomplish it.

But it’s earned. Not given.

Every day can’t be a bed of roses. You’re going to have ups and downs. Keep getting back up.

At The University of Akron, you can be sure you’re not by yourself on this journey.

Are you out there?

Join us. 20151221-NEWS--6-RG1-CCI-CL_-- 12/16/2015 3:23 PM Page 1

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ENTREPRENEURSHIP: Tobin Buckner Achieving success with a startup is a team sport I have spent the majority of my life game I believe to be the greatest asked to take their training and de- “see the possible,” because as entre- participating in athletics. One of my team sport of them all. liver the desired outcomes of their preneurs, network members already greatest joys has been learning about It’s not because the sport is so coaches. have “traversed the tundra” or trav- how I interact with and lead others physically (and mentally) demand- There is an intrinsic and direct eled through the wilderness in which to complete a particular task that re- ing, or a necessary rite of passage – correlation between football and en- you now find yourself stuck. quires mental and physical prepara- or even because there is glory to be trepreneurship in that a team ap- And, like the 11 members of a tion and, ultimately, execution. had. It’s because 11 individuals are proach is often necessary for suc- football team, talented employees As a youngster, I played it all, from asked to do several different jobs or cess. Mentors can be the difference are the ultimate key to success in Tobin Buckner is JumpStart’s tennis and volleyball to wrestling tasks on any given play in order to between running in sand and run- business. No matter how skilled you Akron entrepreneurial and soccer. I had a natural aptitude achieve a desired outcome. Whether ning on concrete – they can get you are as an individual, you will not win community manager and con- for athletics, so I enjoyed at least it’s scoring a touchdown or blocking to where you are going faster than without others who are willing to tributes a monthly blog about some success in most sports. But I a field goal, 11 individuals – with dif- you could alone. Peer networks can help block and tackle. Look for the entrepreneurship in the region. found my true calling in football, the ferent skill sets and body types – are help galvanize ideas and help you to best talent possible – attorneys, ac- countants, salespeople and others that will represent your brand and your standard of excellence through everything they do. And, remember, raw talent is nothing without heart and desire. Character comes first; the rest is teachable. With the right support structure, you can stop worrying about doing every single job that needs to be done and focus on taking your own game to the next level to help your team win. “Your goal as a leader is really to design yourself out of a job – to build a team that’s so good they don’t need you,” said Jeff Hoffman, found- ing executive director of the Experi- ential Learning Center for Entrepre- neurship & Civic Engagement at the University of Akron. “But that doesn’t mean you go home or retire. It means you’re free again. To dream. To envision. To plan the future of the company and steer the ship.” Remember, you cannot clap with just one hand. No one does this thing called entrepreneurship alone. Teams, strong teams, win the day.

Davey Tree launches WE HELP worker scholarships Expert tree care requires more than just knowing how to use a chain saw. That’s why Kent-based Davey Tree Expert Co. wants its employees to go to college to learn about envi- BUSINESS ronmental management – and it’s paying most of the cost of that edu- cation at Kent State University. AT THE HIGHEST LEVEL. “The Davey Foundation will pay 80 percent of the tuition cost each time an employee registers and is ac- cepted into Kent State’s online pro- gram. Employees who continue When a company has a problem that gets kicked upstairs, upstairs kicks it to us. working for Davey two years upon graduation qualify to receive the ad- ditional 20 percent of tuition reim- bursement from the Foundation,” the company announced Dec. 16. As one of the oldest tree-care companies in the world, Davey knows a thing or two about how to care for trees. It worked with Kent to develop the university’s two-year as- sociate degree program in environ- mental management in 2009. The program includes 34 credit hours of For more information, visit vorys.com. online classes through Kent State and 27 credit hours of documented Vorys, Sater, Seymour and Pease LLP on-the-job training. To complete the 106 South Main Street, Suite 1100, Akron, Ohio 44308 latter, Davey employees can partici- pate in the company’s month-long 200 Public Square, Suite 1400, Cleveland, Ohio 44114 Davey Institute of Tree Sciences. For Kent State, the arrangement aligns it with a major employer, Columbus Washington Cleveland Cincinnati Akron Houston Pittsburgh along with the scholarship program. One of the region’s largest employ- ers, Davey Tree employs more than 8,000 people in the U.S. and Canada. 20151221-NEWS--7-RG1-CCI-CL_-- 12/16/2015 3:16 PM Page 1

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SQUAWKR CONTINUED FROM PAGE A3 Not only was the trial a success — Kemmer and Grabowski — but it “I think it’s going to be an amazing but it also offered a valuable lesson. has authorized a number of resellers year of growth for us in 2016. We tice support, said the group needs Analytics showed that about 90% of of the technology, including in New have big plans, and we are talking to often to update the list of doctors to the traffic that night came from mo- England, Cleveland, Columbus and some very big players that also want whom other providers can refer pa- bile devices, but of that, 50% came Arizona. to do mobile smart, and that’s what tients and printed directories are out via Wi-Fi, which typically means Grabowski expects that number to we’re attempting to do. We welcome of date almost as soon as they are there are computers in the same lo- grow. folks who want to sell and who are published. While getting the most cations. “We expect to be hiring next year,” interested in becoming developers current information, users can see “The fact that people chose to use she said. for us.” photos of the physicians, learn what their mobile device instead of their Since January, the company has Kemmer also is excited about services they provide, verify that they computer was very interesting and created about 125 apps and has Squawqr’s success but said it is a lit- are accepting new patients and ac- shows that we were giving them in- many more in the queue. tle overwhelming. cess contact information. formation where and how they “We continue to add functionality “We have gotten eye-poppingly White said the ease of access alone wanted to receive it,” Grabowski and features, but most clients are big,” he said. “We need to decide

has made the cost worthwhile. said. pleased with the baseline features whether to pursue venture capital to SHANE WYNN “Everyone is on their phones any- For now, Squawqr is a staff of two that we have now,” she said. help it expand even more.” Sue Grabowski way, so it’s a great way to reach our members,” she said. Tim Bryan, vice president of mar- keting and communications and chief of staff at Malone University, became interested in Squawqr be- cause he wanted a better way to reach parents, as emails and regular mail often get overlooked. Now, the app (maloneparents.squawqr.com) is the go-to place for parents to find campus news, schedules, care pack- age options, social media links and more. Believe in a better you. “We fill it with content we are cre- ating anyway and meeting parents’ communications needs at the same time,” Bryan says. The first app was such a success that Malone created another one that Bryan calls “even more excit- ing.” It is an overview of all the ma- jors the university offers, with short stories highlighting what a Malone graduate is doing with each degree. The idea behind the app (malone- majors.squawqr.com) is that anyone discussing Malone with a prospec- tive student, such as a coach, has ac- curate “talking points” about aca- demics readily available. Malone has created several other apps with Squawqr. “They let everyone be on the same page at a cost that is much lower than many other marketing expens- es we face,” Bryan said. Robin Doerschuk, founder of the Women’s Leadership Conference of Northeast Ohio, used a Squawqr app (www.wlcneo.com) to help keep the 330 attendees, 22 exhibitors and 12 speakers at her debut meeting in Oc- tober informed about schedule changes, room assignments and ac- tivities. “Squawqr did what no website could,” she said. “I could make changes on it in seconds.” The app allowed participants to rate each session very quickly, great- ly increasing the amount of feedback from the rates seen when people have to do it afterward with pen and paper, Doerschuk said.

Test run A big recent success for Squawqr occurred in November on Election Night at the Stark County Board of Elections when it set out to do a “proof of concept” for sharing elec- tion results. The board typically releases re- sults on a PDF on its website and has an “Interactive Results Page.” The Get the personal attention you deserve plan was for Squawqr to be a third vehicle of information, but on elec- from your health insurance partner. tion night, the server went down at the board of elections. Because the Contact your independent insurance agent or Squawqr app was not tied to that server, it became the only source visit www.summacare.com. available for real-time data. 20151221-NEWS--8-RG1-CCI-CL_-- 12/16/2015 3:03 PM Page 1

PAGE A8 z DECEMBER 21 - 27, 2015 z CRAIN’S CLEVELAND BUSINESS AKRON ARTS CONTINUED FROM PAGE A1 a ton going on in Summit County, but if we’re not telling that story, we’re missing an opportunity.” Mullet is now one of the people making sure that story gets told. She’s executive director of ArtsNow, an organization that started in July specifically because of the GAR/Knight report, and is aimed at addressing some of the shortcom- ings the report found. Initial funding for ArtsNow is coming from the GAR, Knight, Akron Community, Burton D. Morgan, and Mary S. and David C. Corbin founda- tions. One of Mullet’s first initiatives, launched in October, is already the talk of Art Town. Summit Live 365 (summitlive365.com) has quickly become a sort of Craigslist and Face- book of Arts-in-Akron. It’s a site where anyone can announce just about anything in terms of an arts event. “From a hip-hop artist to anything The Akron Art Museum -- with its various spaces, else – we have one guy who is mak- including a performance area and atrium, and programs, ing things out of (shipping) pallets. such as Inside | Out, below right -- has seen a 20% rise Anyone making anything can be on in attendance in the past year. The museum also saw the site, and it’s completely free,” a bump in first-time visitors. (Contributed photos) Mullet said. “As of yesterday, I think we had over 400 events!” And yes, she really is excited. The website is also a tool for Art- sNow’s larger effort – broadening the arts community by connecting more artists with each other and, more im- portantly, connecting residents with the arts scene as a whole. That some- times means getting artists to be- come more broadly involved with other aspects of the community, in- cluding business groups, to broaden their audiences. That approach seems to work, too, said Benjamin Rexroad, who with partner Kyle Joza is behind the two- man theater troupe Wandering Aes- thetics – which, of course, you can find on Summit Live 365. “I’m a member of the Young Pro- fessionals of Akron, and I just recent- ly got accepted into the Torchbear- ers class of 2016. So I have business affiliations, and I’m one of the few what can arts and culture do to sup- economic success overall? Not likely artists really involved in these orga- port the community.” because of the arts alone. But Masuo- nizations,” Rexroad said. “So the Even the big boys are in on the act. ka said he certainly believes his mu- business community has been sup- The Akron Art Museum took its art, seum plays a big role in making portive in terms of coming out to our or at least replicas of 30 of its best Akron a more attractive place for pro- events. In fact, sometimes more sup- works, and installed them in various fessionals, along with everyone else, portive than other artists. They’ve neighborhoods around the city in to live. Parr said he knows that when been very supportive about promot- 2015, said museum executive direc- the town’s big hospitals recruit doc- ing what we do, encouraging people tor Mark Masuoka. The Inside | Out tors, they show them the Civic and to come see us and helping us dis- program worked well enough that the clouds wafting over the ceiling of cover sources.” this year the museum will up that its starlit main auditorium, along number to 40. with other local arts attractions. An expanding arts scene “Everyone deserves a quality art Akron’s mayor-elect, Dan Horrig- Other aspects of the arts scene are experience – everyone,” said Masuo- an, is also a believer – both in the opening up to more Akronites as ka. “We’re going from six communi- positive impact of the arts on the city well. The town’s vaunted and much- ties to eight communities and and new energy represented by Arts- loved Akron Civic Theatre, for exam- adding 10 new works.” Now and other efforts. ple, taps local acts and performers Masuoka said he’s already seen “The ArtsNow effort is fantastic,” for about 85% of its programming, the efforts pay off. The outside ex- said Horrigan, who said the city pro- said executive director Howard Parr. hibits, along with “Free Thursdays” vides the arts community with at It’s a trend the Civic started even be- at the museum – thanks to a spon- least a million dollars a year in fore ArtsNow existed. sorship from the Orrville-based J.M. grants, performance and exhibit Parr, who will soon be raising Smucker Co. – already has resulted spaces, and other services. He said about $4 million to finish the 1929 in a lot more people coming to the doing so is a good investment, be- theater’s restoration, said he sees a museum, according to Masuoka. cause it helps improve the local big resurgence of energy around the “We’ve seen a rise in attendance at quality of life and that helps attract arts in Akron, and he’s glad. the museum – over 20% in one year. and retain residents. “What’s going on with ArtsNow is We’re seeing a huge rise in our audi- “That’s low hanging fruit – those really a game-changer,” Parr said. ence, especially on Thursdays, of are easy things to support and get “What has come out of this whole first-time visitors,” he said. “And I’m behind,” Horrigan said. “You want process and what ArtsNow is all not talking about first time to Akron. the arts to be in the neighborhoods about is — for the first time in the 20 I’m talking about it’s the first time and in the communities where they years that I’ve been here — instead they’ve ever been in any art muse- don’t get to experience it as much … of what can the community do to um.” it makes for a better community and support arts and culture, now it’s Does it all mean the city will enjoy a more well-rounded person.”