20150427-NEWS--1-NAT-CCI-CL_-- 4/24/20154:33PMPage1
0 74470 83781 7 17 [email protected] By CHUCKSODER still show potential Athersys stem cells [email protected] By JAYMILLER Cleveland dockyardto get $8 millioninupgrades -includinga isridingswellPort of prosperity substantially betterrecovery”than ceived MultiStemsooner“exhibited treatment options. stroke patients,whohaveveryfew placebo. cells andthosewhoreceiveda stroke patientswhoreceivedstem significant differencebetweenthe cent clinicaltrial:Therewasn’ta Stem therapytechnicallyfailedare- buster strokedrug. therapy couldturnintoablock- chance —thatAthersys’stemcell lion inimprovementsonthedocks, approved plansfornearly$8mil- port authority’sboardofdirectors and beyond. for abusiercargobusinessthisyear County PortAuthorityisgearingup —theCleveland-Cuyahoga season land inthefirsttwoweeksof have dockedatthePortofCleve- fast start—ninevesselsalready
NEWSPAPER A subgroupofpatientswhore- But it’snotthewholestory. That soundslikebadnewsfor The Clevelandcompany’sMulti- There’s stillachance—just Last Wednesday,April22,the With theshippingseasonofftoa Entire contents Vol. 36,No.17 © month bytheAmericanAssocia- nomic studyreleasedearlierthis Friedman toldtheboard. authority presidentandCEOWill we expectittokeepgrowing,”port as wehaveseeninmanyyears,and 2013. docks, andthatwasupfromfourin had beeninandoutofthelakefront and othersupportequipment. house andthepurchaseofcranes including constructionofaware- week highis$3.43. last Friday,April24.Thestock’s52- the trial—stoodat$1.282p.m. news releasecontainingdatafrom well beforethecompanyissueda stock price—whichstartedsliding during theweekofApril13.The sys’ sharepricefellbynearly55% the datalookpromising. alysts anddoctorstold MultiStem. Evenso,afewstockan- 27 ofthe65patientswhoreceived small: Thesubgroupincludedjust He ledtheclinicaltrial. Hess ofGeorgiaRegentsUniversity. presentation givenbyDr.David the placebogroup,accordingtoa 2015 byCrainCommunicationsInc. How Andy Simms went from student to owner of a sports firm thathandles40NFLplayersHow —P. AndySimmswent fromstudent to owner firm of asports 6 Fees sites fromonlinereservation have restaurant owners rethinking useof —P. bookingservices 5 Friedman quotedfromaneco- “Business attheportisasstrong Last yearatthistime,sevenships But dothoseinvestorsreallyun- Investors mustdisagree:Ather- Granted, thesamplesizewas See ATHERSYS, Crain’s page 30 that from ship-to-rail,ortruck-to-in- count onpredicablemovement al workstoppages,shipperscan’t traffic onthecoasts,andoccasion- cause oftheheavyvolumeship benefitting theClevelandport.Be- lantic andPacificoceans,whichis tion atthedocksonbothAt- ternational tradethough,isconges- growing internationaltrade. 43% since2007,areflectionof ed byallU.S.portshasincreased that theeconomicimpactgenerat- tion ofPortAuthoritiesthatfound A consequenceofthatrobustin- lar, timelycargoservicethrougha and beyondcouldcountonregu- parts andconsumergoodsinOhio importers andexportersofauto was thefirsttimeindecadesthat Group, aDutchshippingline.It gium, operatedbytheSpliethoff tween ClevelandandAntwerp,Bel- sidize regularcargoservicebe- The portagreedtofinanciallysub- the portauthoritytooklastyear. ly returnsofanentrepreneurialrisk from Friedmanisbasedontheear- land, destinations. Another partoftheoptimism warehouse - as cargo ship traffic increases cargoshiptraffic warehouse -as the trans-Atlanticrun. many asfourshipsmaybemaking pated increasedvolumeofcargoas expects thatbecauseofanantici- partures attheClevelandport,he viding bi-weeklydockingsandde- land-Europe Expressthisyear,pro- ships onwhatiscalledtheCleve- the initialplanhadbeentoputtwo board lastWednesdaythatwhile ethoff’s AmericaService,toldthe port ontheGreatLakes. “The marketisstrong,especially Bart Peters,themanagerofSpli- $2.00/APRIL 27-MAY3,2015 See PORT, page 28 20150427-NEWS--2-NAT-CCI-CL_-- 4/23/2015 2:47 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY Cheers to Small Business! Celebrating Small Business Week May 4-8 Join COSE as we celebrate the amazing small businesses in Northeast Ohio during Special thanks to our sponsors: National Small Business Week May 4-8, 2015. Our week-long campaign is jam-packed with promotional, networking and educational opportunities you won’t want to miss. April 27 Here is a sneak peak of a few of our favorite events planned for SBW. Check out all the exciting things happening next week at www.cose.org/sbw and come out and celebrate with us! By The Numbers 465+(@ ;<,:+(@ >,+5,:+(@ ;/<9:+(@ ;/<9:+(@ -90+(@ I ʔ Small Business Art 101 Tour and Small Business Tech Growth: Heights Hillcrest COSE Business Pitch :THSS)\ZPULZZ,TWSV`LLZHYL Campaign Cocktail Reception Bootcamp: Leveraging LinkedIn: Business Expo Finale .LULYHSS`/HWWPLY,TWSV`LLZ *6:,Z[HɈTLTILYZ at the Bonfoey Marketing and Prospecting, This unique B2B Cocktails, hors RPJRVɈ:THSS)\ZPULZZ Gallery Branding Connections and event will be a hot d’oeuvres and Week by hitting the Support small You’re not going More spot with hundreds $40,000! Participate streets for a fun social business and the to want to miss Get the inside scoop of entrepreneurs, in our live audience small business media campaign local art scene at marketing guru Sage from Jamie Nikosey, business pros, as we decide the employees spotlighting NEO this one-of-a-kind Lewis of SageRock as relationship manager educational and civic winners of this year’s overall full-time small businesses. art tour and cocktail he shares his online at LinkedIn Sales leaders, artists and Business Pitch U.S. employees Follow us on Twitter reception exclusively marketing passion Solutions, on how more. (2:30 – 7 p.m., Competition. ( 4:30- and Facebook for for business owners. and expertise. (5:30 - tech companies are 700 Beta Banquet 7:30 p.m., Music Hall owner interviews, (5:30 - 8 p.m.) 7:30 p.m. at Skylight growing revenues by and Conference at Public Auditorium.) pics, special deals Financial) unlocking the value Center) and more. Tweet us of LinkedIn. (7:30-10 @COSEsmallbiz and a.m., Cleveland and the team might just Akron locations) stop by your business! :H[PZÄLK^P[OQVI
SOURCE: SCORE 2015 STATE )0.0+,(: OF SMALL BUSINESS REPORT
The Toasted Oat: Taking the Granola Market by Storm Connection Calendar On May 5, COSE will announce the winners a lease on a kitchen space, purchased an oven of its 2015 Business Pitch Competition in and sink and made all the electrical and other *,64,,;<7>0;/ ^OPJO Ä]L ^VY[O` LU[YLWYLUL\YZ ^PSSZWSP[ upgrades required by the agriculture depart- 9(*/,3;(3;65 $40,000 in cash prizes. We recently checked ment. The COSE money was the catalyst.” 10,000 Small Business Alumnus Rachel in with previous winners to see what kind of Today the company has 15 employees, Talton, CEO of Synergy Marketing Strategy & impact winning or placing in the competition WS\ZÄ]L^OVKLTVOLYNYHUVSHPUZ[VYLZ)VSS can have on the early stages of a new intended The Toasted Oat for the gluten-free Research, tackles the topic of Passion Equity: business. For Erika Boll of The Toasted Oat market, but she found that most stores place Six Steps to Monetize Your Brand. LLC, winning the $10,000 second-place prize her granola on their regular cereal shelves. >,+5,:+(@4(@ in 2013 was the beginning of impressive “It’s become a cross-over product. Stores 8:30 – 10:30 AM growth for the company. have given us great support and our brand Tri-C Metro Campus When Boll entered the 2013 Business sells 200 to 300 percent above others in its Pitch Competition, six Columbus grocery category,” she said. Cost: Free stores sold the gluten-free granola made by What’s next: She has a laundry list of new Register at www.cose.org/events. The Toasted Oat, her three-month-old start- ÅH]VYZ[VL]LU[\HSS`HKK[VOLY;VHZ[LK6H[ up company. The month following her win, line and she’s aiming for national distribution. Heinen’s agreed to launch The Toasted Oat in Sounds like the Business Pitch Competition *6:,)<:05,::70;*/ HSSVMP[ZZ[VYLZ;VKH`[OLNYHUVSH»ZMV\YÅH]VYZ judges knew a good thing when they saw, *647,;0;065-05(3, are on the shelves of more than 200 grocers in um, tasted it! Get in on the action! Participate in our live Ohio, Kentucky, and the mid-Atlantic region. audience as COSE gives away $40,000 in Boll said the COSE prize money allowed i Join us as we announce the 2015 COSE JHZOWYPaLZHTVUN[OL[VWÄ]LJVTWL[P[VYZ her to move from a shared kitchen to a leased Business Pitch winners on Friday, May 8. ,YPRH)VSS -90+(@4(@ space. “It became obvious that we needed to See Small Business Week calendar above ;OL;VHZ[LK6H[33* move,” Boll said. “After the COSE win, I signed for details. 4:30 – 7:30 PM Music Hall at Public Auditorium, Cleveland
;07:-69@6<9)<:05,:: Cost: $25 COSE Members, $40 Non-Members #17: Go All In On Sustainable Business Practices Reserve your seat at www.cose.org/events.
While many small business owners think the and services and are increasingly searching and downstream, and reporting on these .9,(;3(2,:),,9:*/663 idea of sustainable business practices as cost- out eco-friendly companies with which to do practices on an annual basis,” says Margie Develop a good head for beer! This fun and prohibitive — or even just the mission of large business. Adopting sustainable business prac- Flynn, principal and co-founder of Brown corporations — many small business owners tices can give you a unique selling proposition, Flynn, a corporate responsibility and sustain- educational tour includes beer tasting, t-shirt, are quickly realizing that there are a number of OLSWPUN[VKPɈLYLU[PH[L`V\YJVTWHU`MYVT[OL HIPSP[` JVUZ\S[PUN ÄYT PU *SL]LSHUK ¸;OVZL tasting glass and light snack. ZPNUPÄJHU[ILULÄ[Z[VLTIYHJPUNZ\Z[HPUHIPSP[` competition. Small businesses are also grasp- companies that understand and anticipate ;/<9:+(@4(@ no matter the size of your business. ing the need to conform to sustainability poli- these increased expectations, and continue 6 – 8 PM Sustainability involves identifying opportu- cies of companies in their supply chains. to adopt sustainable practices as a result, will Great Lakes Brewing Company nities and systems that have a lesser impact The potential impact on your company’s be better positioned for success as a valued on the environment than previous methods. long-term success makes sustainability plain business partner.” Cost: $35 Recognizing the social impact of your busi- old good business sense. “Looking ahead, i The easiest way to “go green” is to adopt Reserve your spot at www.cose.org/events. ness actions and engaging in sustainability smaller companies will continue to face in- VWLYH[PVUHSLᄗJPLUJPLZPU`V\YI\ZPULZZ practices can help to reduce costs, improve creased pressure by large, publicly traded Check out www.cose.org/smallbizmatters WYVÄ[ZHUKVɈLYVWWVY[\UP[PLZMVYPUUV]H[PVU customers that are auditing the sustainability for 10 steps to make your business more Consumers today want greener products practices of their value chain, both upstream sustainable. Check out www.cose.org/events CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150427-NEWS--3-NAT-CCI-CL_-- 4/24/2015 1:25 PM Page 1
MAN IN WESTLAKE SHOPS FOR NEW CAR IN MENTOR. ON HIS PHONE.
Classic Ford & Lincoln Classic Toyota & Scion Classic Volkswagen Classic Cadillac Classic Chevrolet Classic Hyundai Classic Mazda 8540 Tyler Blvd. 8510 Tyler Blvd. 8465 Tyler Blvd. 8470 Tyler Blvd. 6877 Center St. 8460 Tyler Blvd. 6951 Center St. Mentor, OH 44060 Mentor, OH 44060 Mentor, OH 44060 Mentor, OH 44060 Mentor, OH 44060 Mentor, OH 44060 Mentor, OH 44060 (440) 266-3000 (440) 205-6300 (440) 205-6500 (440) 255-6955 (440) 255-5511 (440) 266-6777 (440) 205-6401
Shop Classic’s 9-brand Mentor Campus on your phone.
Now search Classic’s fifty acre Mentor Campus on your phone, at DriveClassic.com. You’ll find hundreds of new cars, including nine new car brands. And you can get a real price quote in 8 minutes. It’s so easy. Of course you’re always welcome to stop by anytime and stroll around the Campus. It’s getting really pretty this time of year.
Drive .com Now. Car shopping right in the palm of your hand. 20150427-NEWS--4-NAT-CCI-CL_-- 4/24/2015 4:31 PM Page 1
4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 SOLD 26350 BROAD OAK PARKWAY OAKWOOD VILLAGE, OHIO
Newmark Grubb Knight Frank is pleased to announce that Visit Terry Coyne and Mike Plaspohl TerryCoyne.com represented a Dallas-based private Or Call Terry at equity fund in the disposition of 216.453.3001 26350 Broad Oak Parkway for $4,375,000 ($58.33/SF).
1350 Euclid Ave., Suite 300 Cleveland, Ohio 44115 CONTRIBUTED PHOTO Ohio Technical College President and CEO Marc Brenner said the school has been making a number of upgrades around its campus, such as a neighborhood garden and a basketball court. The campus is shown here in July 2011. Attn: Manufacturers & Warehouses Tech school gains from ties “Our new lighting has brightened our production floor and our quality inspection By RACHEL ABBEY McCAFFERTY The college is quite a bit larger “We’re getting a different stu- [email protected] than it was when Brenner’s father dent,” Brenner said. areas. We are very pleased with the job set up shop as the Ohio Diesel Me- The college first broke away from Ohio Technical College has been chanics School in 1969. It will have the auto sector with its School of ROI Energy performed.” busy in recent years, by continuing about 1,300 students at its Cleve- Welding Technology, introduced in to grow its program offerings and land location and its PowerSport 2010. The school, which is spon- Bill Koach expanding its collaborations with Institute in North Randall this fall, sored by Lincoln Electric, helps the Nook Industries big names like Lincoln Electric Co. down a bit from its peak of 1,500 company leverage its position in and Edelbrock LLC. about five years ago, Brenner said. the market, said Carl Peters, its di- The programs with companies About 80% of the school’s stu- rector of technical training. Lincoln like Eaton, BMW and Cummins Inc. dents come from out of the county, Electric doesn’t want to be a com- CALL serve purposes both practical and Brenner said, and about 50% are petitor with schools offering weld- publicity-driven. They lend “instant from out of the state entirely, so it’s ing education — it wants to help Bob Taussig credibility” to Ohio Technical Col- imperative that Ohio Technical them become better at it, he said. lege, as potential students tend to College make a good impression. Peters said Lincoln Electric is in- ROI Energy know the companies that support “When good things happen to terested in working with schools Today! the school better than the school it- the city, good things happen to us,” that want to do it right, training self, said president and CEO Marc Brenner said, noting that the oppo- people to weld safely and produc- Brenner. site also holds true. tively. It’s not looking to work with 330-931-3905 But the programs also give the Today, the campus, with offices a “puppy mill of welding,” he said. www.ROI-Energy.com school access to equipment and cur- at 1374 East 51st St., is made up of And Peters praised Ohio Techni- Serving NE Ohio riculum from the major companies 16 buildings. The college’s School cal College for training in the latest in the industry, said Tom King, the of Classic Car Restoration Technol- techniques and philosophies, like college’s director of enrollment ogy, where students learn skills like the more comprehensive approach management. Some of the training woodwork and painting, as well as of teaching students to design, cut centers and academies the school how to completely disassemble and and weld, instead of skipping to the has added in recent years are used reassemble a car, take up a few last step. by the companies for external train- buildings. There’s the building for Andy Fiffick, president and CEO ing, but students at Ohio Technical the High Performance & Racing of Rad Air Complete Car Cares and College also benefit. The school has Technology School, as well as ad- Tire Centers, said he wishes the introduced three branded programs ministrative offices and spaces for school produced more local stu- at its main campus just since 2012, storage. dents to help grow the workforce and King said he expects more to One building will house the pool in the region. Currently, Rad come. School of Rod and Custom Tech- Air employs four of Ohio Technical “The goal is to put out the finest nology, where students will get to College’s graduates. technician in the industry,” King turn vehicles into “something un- The company doesn’t officially said. recognizable,” Brenner said. That sponsor any academic programs Ohio Technical College is a pri- program, a new one within the auto for Ohio Technical College, but it vate, postsecondary technical services sector, will begin this fall. does work closely with the school, school in Cleveland. The majority Brenner said he’s also looking to Fiffick said. Fiffick said he often vis- of the programs in areas like auto- expand the school’s program offer- its to speak to the students, and the motive technology, collision repair ings outside the auto sector, and college even brings students to Rad and diesel equipment run for 18 has two programs in the develop- Air’s Cleveland facility to check out months, and associate’s degrees are ment phase: HVAC, and industrial, the real-life working environment. offered in some programs. Brenner residential and commercial electri- The college has good equipment estimated that the college places cal. The plan is to get those under- and up-to-date training programs more than 90% of its graduating way in the next two years. If the in a variety of skills, he said. students in the field, a figure it has school wants to continue to grow, it “Whatever the student is seeking, to track for accreditation purposes. has to branch out, he said. they offer it,” Fiffick said.
CORRECTION Due to a computer error, por- “Being in this network is not just utive director of Cleveland Clinic tions of the last paragraphs were something you do. You’re evaluat- Innovations. The paragraph read: dropped from two Page One stories ed.” “This is the perfect example of our in the April 20 edition. You can read the full Cleveland caregivers inventing something Volume 36, Number 17 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite The final paragraph of “Cleve- Clinic story here: around real health care needs,” he 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleve- land Clinic’s alliances are as hearty http://bit.ly/1bkiF3S said. land Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT as ever” was a quote from Dr. Ger- The final paragraph of “Explorys- You can read the full Explorys- INFORMATION: 212-210-0750. Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Devel- ald Sotsky, chair of cardiac services IBM deal is big for both parties” was IBM story here: opment Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscle- veland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. for Valley Medical Group. It read: a quote from Gary Fingerhut, exec- http://bit.ly/1Dt4krU 20150427-NEWS--5-NAT-CCI-CL_-- 4/24/2015 3:58 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5
The hidden cost of online reservations Fees that can tally in the thousands per month prompt some restaurants to rethink booking sites
By KATHY AMES CARR The monthly expense prompt- [email protected] ed Karen Small, chef/owner of Fly- ing Fig in Ohio City, to nix the service penTable has demonstrated its relevance in our in February after nearly 10 years of use. “The cost of one dollar per reservation modern insta-culture. O was getting out of control,” she says. “Those The online reservation service enables 16 million costs add up to a few thousand dollars a month. monthly users to make within seconds an e-reservation When you do the math over one year, that can 24 hours a day at participating restaurants, and incen- amount to another employee’s salary.” tivizes users with a rewards-based point system. Diners rely on OpenTable because it’s free, easy to use and You won’t find the indie-neighborhood eatery Momo- shaves off time from the old-fashioned dial-answer-let- cho on OpenTable, either. me-place-you-on-hold effort. “We’re always busy, so I didn’t feel it was a necessary But some local restaurant owners have their own reser- expense,” chef/owner Eric Williams says. “We actually en- vations about whether the service’s cost boosts their bot- joy speaking to our customers via the phone. Interperson- tom line. al communication skills are a lost art.” “It’s one of those love-hate relationships,” says Doug About 200 restaurants in and around Cleveland join the Katz, chef/owner of Fire Food and Drink in Shaker approximately 32,000 restaurants around the globe that Square. “It’s not good from a cost standpoint, but unfor- use the service. The average revenue per seated diner who tunately, it is an important part of my business.” made a reservation via OpenTable is $42.50, said Tiffany Katz estimates it costs $18,000 a year to use OpenTable, Fox, the company’s senior director of corporate commu- including a $1,200 annual fee for a front-of-the-house sys- nications. tem that manages reservations and tracks guests’ dining Other online reservation systems, such as Table8 and preferences. Resy, are trickling into the marketplace, attempting to un- He pays $1 for each customer who makes a reservation seat OpenTable’s dominance in the restaurant reserva- through OpenTable, and 25 cents per diner when that tion space. reservation is processed through Fire’s website. Many of those sites service only New York, San Francis- “It’s a major marketing cost,” Katz says. See FEES, page 29 ISTOCK RNC committee sets sights on rogue hotels
them guests. needs to make sure the offending She sees how it can happen They’ve got the beat By DAN SHINGLER Then, Cleveland won the event, hotels know that he’s serious about though. She herself gets offers all The big downtown hotels, like [email protected] and offers to rent rooms for higher taking them to court if they don’t the time from out-of-towners who the Marriott, the Wyndham and the and higher prices began coming in. live up to their agreements. want to attend the convention and Ritz-Carlton, also are looking for David Gilbert needs about 1,000 Some hotels apparently couldn’t “We absolutely have leverage — are willing to pay many times the long-term benefits. They’re work- hotel rooms that he says are being resist booking rooms at those rates. we have a written agreement. If it going rate to circumvent the RNC ing very cooperatively with the sold out from under him — and Gilbert said most area hotels are takes legal action, we’re prepared in the process. RNC, the local Host Committee and apart from efforts to coordinate the playing well with both the RNC and to do that,” Gilbert said. “Our hope “A hotel gets a dangle that some- each other to ensure the event goes 2016 Republican National Conven- each other, including honoring is it doesn’t come to that, but we’re one puts in front of them for a huge smoothly, said Brian Maloney, gen- tion. those commitments, which they prepared to go to court if we have rate for three weeks and they take eral manager for the Wyndham Ho- If he doesn’t get them, and soon, made last year and early in 2015. to.” it,” Goodnight said. “I get them all tel at Playhouse Square. he says he won’t hesitate to sue the But a group of about 10 hotels, all of the time . . . and they’ll give us a lot “The folks that I deal with down- out-of-state operators of about 10 them run by out-of-state manage- of money, but we have to say ‘no.’ ” town, we’re all marching to the Cleveland-area hotels. Gilbert says ment companies and mostly locat- ‘It’s just wrong’ Most of those offers have come same drum,” Maloney said. “The those operators are reneging on ed in the suburbs, have been reneg- The situation puts Cleveland in a from out-of-state media outlets, downtown hotels are all very unit- promises to provide rooms to the ing. possible position of not living up to she said — likely ones that don’t ed.” Republican National Convention He declined to name which ho- its promises to the RNC, potential- have a cozy enough relationship Gilbert agreed, and said he has when it comes to Cleveland in 2016. tels outside of downtown are creat- ly giving both the city and its hotel with the RNC to get rooms through had few if any problems with the More specifically, the operators are ing the problems, however. He and tourism industry a black eye in approved channels. big downtown hoteliers, who obvi- not providing the rooms to be as- might never name them, he said — the process. Goodnight and most other hote- ously have what will be the conven- signed by the Republican National or he might name them all in pub- “Those contracts were actually liers see the RNC not as a one-time tion’s choicest rooms. Committee that controls the con- lic court documents, soon. signed in the middle of last year, chance to fill their rooms at higher- Things might now be difficult to vention, as they previously com- Instead of holding their rooms somewhere around a year ago,” than-usual rates, but as a chance to unravel and reweave the way mitted to doing, he said. until the RNC assigns them and Gilbert said. “They went in with our build their brand and business over Gilbert hopes, too. There are likely Last year, Gilbert, who is CEO of sends guests their way, paying rates bid to win the convention.” the long term. Hotels downtown or hotels that have taken deposits and the Cleveland 2016 Host Commit- only a little higher than normal, Not only is Gilbert growing im- in the business-rich area along I- made commitments to provide tee — as well as head of the Greater those hotels have been accepting patient, but some local hoteliers — 271 near the Hotel Indigo are nor- guests with the same rooms that Cleveland Sports Commission and reservations from outsiders looking those that are working closely and mally full during the summer any- they’ve promised to the RNC. In the tourism agency Destination to book a room, often at much cooperatively with Gilbert and the way, they say. other words, they’ll either have to Cleveland — went to nearly every higher rates. RNC — are ticked off as well. “We look at it as more an invest- break their words with newly hotel within a 35-mile radius of “There are in the neighborhood “I don’t’ see how you can com- ment in Cleveland and a long-term booked guests, or risk Gilbert’s Cleveland. The committee needed of about 1,000 rooms (at hotels) mit to someone for their bid and commitment to the region,” said wrath and litigation. and found about 16,000 rooms that that voluntarily signed the agree- then go and contract around it with Goodnight, who added that the real Goodnight said she too hopes hotels said they would have and ments . . . either they’ve gone ahead someone else. … It’s just wrong,” payoff should be increased traffic that the situation can be resolved keep available if the city won the and given the rooms to other peo- said Brenda Goodnight, regional for all hotels in the months and without it getting ugly. But she’s 2016 Republican convention. Near- ple or they’ve said they’re going to director of sales and marketing for years after the convention. not particularly optimistic. ly every hotel signed a contract, do that,” Gilbert said. Twin Tier Hotels, which owns the Returning visitors and a bur- “I hate to see it come down to with most hotels promising to hold He doesn’t want to file suit to get 404-room Hotel Indigo in Beach- nished image of Greater Cleveland lawsuits, but I think that’s what’s 90% of their rooms for the event those rooms back under the RNC’s wood, along with four other subur- generally should help accomplish going to happen,” Goodnight said. and to allow the RNC to assign control, Gilbert said — but he also ban hotels in the area. that, she said. 20150427-NEWS--6-NAT-CCI-CL_-- 4/24/2015 2:06 PM Page 1
6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015
For Sale or Lease - 74,510 Industrial Bldg. On 8.3 Acres - 28’ to 32’ Clear Height THE MAN BEHIND THE PL How a Cleveland native built a successful business representing p
By KEVIN KLEPS [email protected]
Andy Simms was still a student at the Case Western Reserve Universi- ty School of Law when he signed his first NFL draft prospect. The player, former linebacker Chike Okeafor, was selected in the 8500 Hadden Rd., Twinsburg, OH third round of the 1999 draft, when Simms was a third-year law student. • 74,510 SF Total Area on 8.3 Acres • Ceiling Height 28’ to 32’ Clear It was a year before the Hawken • 7,360 SF Offi ce Area • Column Spacing 34’ x 50’ & 25’ x 34’ High School graduate — who says, • 67,150 SF Warehouse Area • 480V/1,200 AMP/3-Phase Power “I was that guy who had a cell phone • Six Docks w/Levelers & Seals (8’ x 10’) • 8” Floor Thickness in law school” — passed the bar • Two Drive-in Doors (12’ x 14’) • Fully Sprinklered (wet) exam. Sixteen years later, Simms is still • Metal & Masonry Construction • Expandable by 70,000 SF going strong in a business — repre- senting professional athletes — in David R. Stover, SIOR which it is almost as difficult to suc- 216.839.2012 ceed as it is for his clients to make it [email protected] HannaCRE.com in the most prominent of pro sports leagues. The firm Simms founded, Player- sRep Sports Management, now has six agents who live in four states and count about 40 NFL players among their clientele. Seven additional PlayersRep clients are projected as 2015 draft picks, and the firm has PLAN added four assistant coaches (two in . the NFL and two in college) to its growing stable. Simms, 40, has come a long way EXIT from the former law student who . will be “the first to admit I didn’t know a lot about what the job en- tailed other than watching ‘Jerry PLAY Maguire.’ ” . At the beginning, Simms wanted to get into the business so badly that he spent the summer after his sec- ond year of law school traveling to It takes 3-5 years for a plan to maximize minor league baseball games. He landed five baseball prospects in value. Begin today. Call us today. CONTRIBUTED PHOTO 1998 — and none of them ever NFL agent and Solon resident Andy Simms is shown at Super Bowl XLIX with two reached the big leagues. of his clients, New England Patriots safety Devin McCourty, left, and running back “What I realized is you can’t real- Stevan Ridley, who has since signed with the New York Jets. ly succeed in business with a bunch of minor league players who at their best might be four, five, six years sRep client to be selected in the first lineman Desmond Bryant and for- away from getting into the majors.” round of the NFL draft, agreed to a mer wide receiver Nate Burleson. He transitioned to football, and five-year, $47.5 million extension Simms said the standard is for the when Okeafor was chosen 89th over- with the Super Bowl champion New agent to get 3% of the players’ earn- Call our Certified Exit Planning Advisor, Ray Lampner: 330.572.8014 all by the San Francisco 49ers the England Patriots. The $28.5 million ings, which include their salaries, [email protected] • www.BCGLegacyAdvisors.com following April, Simms had estab- that is guaranteed in McCourty’s signing bonuses and any incentives lished a business — albeit a very deal is a record for a safety. that are included in their contracts. small one. “That was fun,” Simms said with If the McCourtys play out their “I had two draft picks in the year a smile as he was describing the five- and six-year contracts, that after that, which would’ve been the Devin McCourty negotiations, would be worth about $2.715 mil- 2000 draft,” he said. which didn’t involve Patriots coach lion to PlayersRep. “After they got drafted, I ripped Bill Belichick but Nick Caserio, a Other contracts — such as the up my résumés and didn’t apply for Lyndhurst native and New Eng- ones signed during the 2015 offsea- a single job in law. I just said, ‘I’m land’s director of player personnel. son by PlayersRep clients Ridley going to do this full-time,’ and then “We have great clients obviously,” (one year, $1.25 million), Sterling just kind of kept building from there Simms said. “This whole business is Moore (one year, $1.525 million) piece by piece.” about getting clients and keeping and Bradley Fletcher (one year, $1.5 them, but all that stuff is predicated million) are much smaller, and ob- on recruiting the right kind of guys. viously not nearly as lucrative to Double jackpot That’s the biggest thing I’ve learned Simms’ company. Simms, like any agent worth his over the years. We spent a lot of time “As a business, you know that’s license, makes a point of saying his getting into their character — who where your revenue is generated,” group doesn’t “work any harder” for we’re going to recruit, their work Simms said of the NFL’s free-agent their high-profile clients as they do ethic, what they’re like off the field, period. for “the guy that went undrafted and because that really determines who “These new contracts, guys that is trying to make a team.” makes it and who doesn’t.” are hitting free agency, you know But two players — twins Devin The McCourty twins, by all ac- how important that is not just for and Jason McCourty — have been counts, succeed across the board. business revenue, but for your own very good for business. The majority of the PlayersRep marketing.” Prior to the 2012 season, corner- stable isn’t as recognizable as the back Jason McCourty agreed to a brothers with contracts that are The players’ ‘voice’ six-year, $43 million deal with the worth a combined $90.5 million, but Tennessee Titans. The contract in- there are some notable names. Run- Usama Young said there were cluded a $9 million signing bonus ning back Stevan Ridley, who left “several” agents who approached and $17 million in guarantees. the Patriots for the Jets in free him about representing the safety On March 8, two days before the agency earlier this month, is a client, when he was a 2007 NFL draft start of the league’s free-agent peri- as are Lane Johnson, a tackle select- prospect out of Kent State. od, Devin McCourty, a 27-year-old ed by the Philadelphia Eagles fourth Young said he selected Player- who in 2010 became the first Player- overall in 2013, Browns defensive sRep because “it seemed like they 20150427-NEWS--7-NAT-CCI-CL_-- 4/24/2015 2:12 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7
THE NEXT WAVE TWIN HYPE PlayersRep Sports Management represents seven players who Twins Devin and Jason McCourty, who are PlayersRep clients, PLAYERS are projected to be selected in the 2015 NFL draft, which begins both have contracts worth a potential of at least $43 million. A Thursday, April 30. The projection listed is the best-case scenario breakdown of their deals, according to Spotrac.com: g professional athletes according to two draft sites — NFL.com and NFL Draft Scout. DEVIN MCCOURTY, JASON MCCOURTY, were genuine,” and because of PLAYER POSITION COLLEGE PROJECTION SAFETY, PATRIOTS CORNERBACK, TITANS Simms’ knowledge of “the system The deal: Five years, $47.5 million THE DEAL: Six years, and the process.” Lorenzo Doss CB Tulane Round 4 or 5 Young was selected in the third (2015-19); $15 million signing bonus; $43.04 million (2012-17); $9 million round by the New Orleans Saints Ben Koyack TE Notre Dame Round 4 $28.5 million guaranteed signing bonus; $17 million guaranteed that year, and he later landed con- 2015: $10 million signing bonus 2015: $6.8 million salary tracts worth a potential of $5.9 mil- Tony Lippett WR Michigan State Round 4 (remaining $5 million is due on March lion and $2.335 million with the POTENTIAL FOR PLAYERSREP: Casey Pierce TE Kent State Round 6 or 7 31, 2016), $2.5 million salary, Cleveland Browns (he played two If McCourty plays out the contract, the $500,000 roster bonus years of a three-year deal) and Oak- Tyrus Thompson OT Oklahoma Round 3 or 4 agency would get $1,291,200 (3%) land Raiders (he was released on Darren Waller WR Georgia Tech Round 3 or 4 POTENTIAL FOR PLAYERSREP: March 6 with one season remaining If McCourty plays out the contract, the on a two-year contract). Daryl Williams OT Oklahoma Round 3 agency would get $1.425 million (3%) The 29-year-old defensive back has had each of his last two seasons ended because of injuries, but he hopes to play in 2015 and has kept busy rehabbing and working for Be- lieve in U, his youth foundation. Young said Simms has lived up to his bargains over the years. “As my agent, he ends up being my voice a lot of times when it comes to contract negotiations,” Young said. “I’m not able to be on the phone with him or in the room when he’s meeting with GMs. He always com- municates with me and seems like he’s keeping it straight. He’s gen- uine. A lot of agents use jargon and the players don’t understand what they’re saying, and college athletes don’t know what they’re getting into.” Dave Lee, a Mayfield Village na- tive, joined PlayersRep as an agent in 2001, when he said the company had “five or six” clients. He said Simms has been his men- tor, as well as his “boss, my big brother, my teacher — everything in one. He’s been really good to me.” Simms and Lee are joined by Wes- ley Spencer, who co-founded Player- sRep with Simms, Ken Sarnoff, Sam Renaut and Cody Recchion. Simms — who lives with his wife (the former Katie Pollock, who was a Cleveland Indians reporter for Fox Sports Net in the early 2000s) and 6- and 8-year- old daughters, Jacey and Marley, in Solon — is the only one who lives in the area. Lee and Sarnoff are in Illi- nois, Spencer and Recchion are in North Carolina, and Renaut resides in Arizona. They travel a lot, especially during the NFL season, and today’s always- plugged-in society allows them to work out of their home offices when- ever possible. Solutions for every stage of your business Start Run Expand Transition PlayersRep’s approach — quality over quantity — and careful selec- tion of clients has, according to Simms, placed the company among the top 15 NFL agencies. And while Our business is helping the list of clients on their website, which numbers 41 if you include Burleson, isn’t overwhelming, it’s pretty significant when you consid- to grow your business. er that there were about 810 agents registered by the NFL Players Asso- With tailored solutions ranging from award-winning checking options to lending ciation at the start of the 2014 sea- +FSSZ"SDIBNCBVMU son. There are 1,696 roster spots (53 and payment solutions, our dedicated Business Bankers may provide you with #VTJOFTT#BOLJOH times the 32 teams), plus as many as the tools to help make your business dreams a reality. Call your local U.S. Bank 320 players who can be placed on Business Banker today, and let’s talk. the practice squad. That’s 2,016 jobs — or 2.5 per registered agent. “It can be a very difficult business, obviously,” Simms said. “We figured out what we’re good usbank.com/business | | at, and we figured out what we’re not good at. “We just try to find the right kind
of players who appreciate the kind of From MONEY magazine, November 2014 © 2014 Time Inc. MONEY is a registered trademark of Time Inc. and is used under license. MONEY and Time Inc. are not affiliated with, and do not endorse products or work that we deliver. That’s the for- EQUAL HOUSING services of, Licensee. Subject to normal credit approval and program guidelines. Some restrictions and fees may apply. Please see your banker for more information. Deposit products offered by U.S. Bank National mula that works.” Association. Member FDIC. ©2015 U.S. Bank 150388 4/15 20150427-NEWS--8-NAT-CCI-CL_-- 4/24/2015 2:05 PM Page 1
8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 PwC turns regional focus to market share
By JEREMY NOBILE reer in Cleveland with the firm’s au- this region, which we believe are cities, where the top 200 clients Beyond finances, Ross aims to [email protected] dit practice in 1987 and worked up strong, but the economical risks comprise about 95% of total rev- grow his market’s total staff, though through the ranks, achieving part- could represent an area of head- enue. In Northeast Ohio, PwC he would not discuss by how much. Mark Ross returned to his native ner in 1999. winds in the future,” Henderson serves 80% of the Fortune 1,000 The staff is heavily weighted with Cleveland this year with some aus- He eventually took leadership added. companies with a presence here in young people, bringing the average picious goals for Pricewaterhouse- roles in deals practices in Miami in at least one of its three service age of PwC employees to 27, Ross Coopers’ Lake Erie market. 2006, followed by San Francisco in lines. noted. And while turnover was Ross wants to double the audit, 2011, where he recently left to re- Opportunities ahead The consulting side offers some higher in California, where the firm tax and consulting company’s busi- turn to Cleveland. But other challenges exist with of the “largest” opportunities for competes against large and lucra- ness in this market — which com- “I knew I wasn’t going to retire in capturing market share for a com- us, Ross said, referencing the com- tive Silicon Valley companies, re- prises Cleveland, Pittsburgh, and California,” said Ross, 50. “This is a pany with an expansive existing pany’s bolstering of the practice tention in the Cleveland market is Buffalo and Rochester, N.Y. — by city I have an extreme amount of presence. with last April’s acquisition of New “extremely” strong. Ross attributes 2020. pride for, and it was time to come The only firm with a larger client York-headquartered global man- that to “Midwest cultures and val- But how does the world’s sec- home.” base and revenues in Ross’ region is agement consulting firm Booz & ues.” ond-largest professional services Ross grew up in Mentor and Ernst & Young, which also edges Co. that PwC has rebranded as One effort for drawing talented corporation continue such growth graduated from Miami University. past PwC globally as the top corpo- “Strategy&.” young people includes promoting at its already massive scale? He’s preparing to settle in his new ration in the Big Four. Some Strategy& execs are work- work-life balance and more com- It takes it from other companies. home in Cleveland’s Edgewater Privately held PwC does not dis- ing out of PwC’s Cleveland office, munity service opportunities. “We believe our opportunity to neighborhood. close specific regional finances. which added 10 partners from Booz “(Millennials), I think, get a tough take market share for audit clients “Mark has demonstrated a Globally, PwC had about $34 billion & Co. to bring the Cleveland partner rap,” Ross said. “There’s this idea is going to be a significant growth tremendous track record of success in gross revenues in fiscal year 2014, presence to 45 — a significant hike they don’t want to work as hard, but opportunity for us,” Ross said. in every role we’ve asked him to about $12.7 billion of which is gen- from the 25 partners here just five that’s not true. They just want to Consistent growth in PwC’s con- take on for the firm,” said Jay Hen- erated in the United States and the years ago. work differently. They want there to sulting and tax practices also derson, PwC vice chairman and Caribbean. “People think about PwC as an be more focus on purpose than bodes well for the company’s Midwest Region leader. “Because of The overall firm has achieved accounting and tax firm,” Ross aid, profit, to some extent. They want to goals. his success with transaction ser- about 9% annual growth over the “but over 30% of our revenue now feel like they’re associated with Ross took over as managing part- vices in Florida and San Francisco past five years, Ross said, with nationally is coming from consult- something that’s adding value to ner of the Lake Erie market in Janu- combined with his deep roots in about 8% annual growth logged in ing.” society.” ary, replacing Bob Saada, who now Cleveland, he’s the ideal candidate the Lake Erie market. PwC has set The audit and tax practices com- A PwC survey shows the compa- is PwC’s managing partner of the to take on the Lake Erie market go- the bar at about 10% annual growth prise about 42% and 27% of PwC’s ny expects its staff will consist 80% company’s New York Metro Deals ing forward.” firmwide. remaining revenue pie. Those two of millennials, or people born be- and Transaction Services practice. “There are continued opportuni- Ross oversees about 1,000 em- lines are growing between 5% and tween 1980 and 1995. A PwC lifer, Ross started his ca- ties for growth in the companies in ployees across his market’s four 10% annually, but the consulting “So our mindset has to change to business is growing at a clip of 15% be more responsive to that genera- to 20%, Ross said. tion in general,” Ross said. With Ross’ plan to double PwC’s Lake Erie market business in five Fighting for No. 1 years, he’s setting a trajectory to be The Cleveland office also recent- the region’s largest professional ser- ly added M&A tax capabilities with vice network — an auspicious goal the first of the year. for the London-headquartered cor- “We continue to see strong poration that Ross said is already ei- growth in the deals business, and ther first or second in every one of transaction activity is strong for our its 20 markets in the United States. private equity clients, too,” Ross “And five years from now,” he said. “That will continue to be a fac- said, “I want us to be the No. 1 tor in the Lake Erie market.” brand in this market.”
EXCLUSIVE BRANDING EXECUTIVE Because we understand your business… OPPORTUNITIES FITNESS CENTER Business CHANGE YOUR VIEW Radically redesigned and updated, 1111 Superior Avenue sets the new standard for premium downtown office space. Litigation Looking for an exciting new downtown location that inspires? Check out the new 1111 Superior Avenue. Employment & Labor
NOW LEASING Real Estate & Construction Contact Myrna Previte to schedule your tour today. Health & Medicine [email protected] | 216-514-1400 Kowit & Company Real Estate Group Trust & Estates
NEWLY RENOVATED CONFERENCE ... you thrive & EVENT CENTER LOBBY WITH LED WALL Your business is more than just a job; it is your livelihood, your passion, your calling – we get it. We also understand that at the heart of every business lies someone who will go to great lengths to protect it. That’s where we step in.
Buckingham, Doolittle & Burroughs, LLC Akron • Canton • Cleveland bdblaw.com 20150427-NEWS--9-NAT-CCI-CL_-- 4/23/2015 4:30 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Biz is always on the move, constantly growing The number of companies using Movable’s activity trackers has increased seven-fold in two years, and a new version is on the way
By CHUCK SODER said, again citing the company’s ef- [email protected] fort to serve more large customers. Movable competes partly on Sure, the size of Movable’s cus- price, but it also aims to win over tomer base has exploded over the businesses and schools by giving past two years, but we can’t de- them software designed to help scribe it as “untethered” growth. them manage fitness-related pro- Roughly 900 companies and grams and analyze the data collect- school districts have distributed ed by their Movbands — and any Movable’s wrist-worn activity other activity trackers they use. trackers to their employees and “Movable is really a data compa- students. ny,” he said. That’s up from about 130 two Administrators can use the soft- years ago — a seven-fold increase. ware to build challenges and send Not bad. But if anything has re- CONTRIBUTED PHOTOS messages to participants. For in- At left, Movable employees have a stricted the company’s growth, it’s stance, if someone wearing a “stand-up” meeting at the company’s all those darn USB cords. Movband has been sitting still for headquarters in Brecksville. Above, Next month, however, Movable too long, the administrator could the Movband 2 (left) and Movband 3 will release a version of the program the system to send them a are shown side-by-side. Movband that doesn’t need them: text message reminding them to get The Movband 3 will be able to sync moving. with a computer wirelessly. And it Or if the employee is wearing the should help the Brecksville-based many other activity trackers. manpower in other ways, too. The was one of the first employees at Movband 3, the software can tell it company win more large cus- “It was really built to capture company employs nearly 30 people Findaway World, a digital audio to vibrate. tomers, according to CEO Blake more of an enterprise environ- today, up from about a dozen a technology company that Squires Eventually, Movable will focus Squires. ment,” Squires said. year ago. And in December, it hired helped start in 2004. more on selling to doctors’ offices Major corporations are often Thus, Movable is gearing up to two other executives who have Movable also hired chief tech- and hospitals. Some doctors al- willing to spend more money for a go after those large companies. helped it accelerate the develop- nology officer Adam Hutcheson. ready are asking their patients to better product. The Movband 3 That’s one reason why the com- ment of the Movband 3. He previously held that title at wear Movbands, Squires said, not- should fit the bill, Squires said. In pany hired Jeff Scott at the end of Squires brought on one of his Mongoose Metrics, a local market- ing that doctors can track how addition to the wireless capability, March. Scott, who spent more than former colleagues, Mike Belsito, to ing analytics firm that was acquired much exercise patients are doing it’s also “thinner and sleeker” than a decade working for KeyBank, is lead product development and last year. through the software. its predecessor, he said. Thus, it Movable’s chief financial officer, strategy. Belsito is best known for Movable needed a CTO. In addi- “The data will become more costs $60 — twice as much as the but he’s also tasked with helping helping start a now-defunct funer- tion to developing the Movband 3, valuable as the Affordable Care Act $30 Movband 2, but still less expen- the company sell to large clients. al home comparison shopping the company also has been beefing … becomes more outcomes- sive than the standard Fitbit and Movable has been adding more website called eFuneral. He also up the software behind it, Squires based,” he said.
It’s been a busy eighteen months for Global Principal Partners…
Mississippi Silicon BlueOak Arkansas Big River Steel $200 million $35 million $1.6 billion Global Principal Partners Global Principal Partners Global Principal Partners structured the transaction and structured the transaction and structured the transaction and raised $200 million of debt and raised $35 million of debt and raised $1.6 billion of debt and equity for this new company equity for this new company equity for this new company January 2014 April 2014 June 2014 Global Principal Partners Global Principal Partners Global Principal Partners
Big River Steel Mid-River Terminals Arkansas Steel Processing BlueOak Arkansas $175 million $35 million $32 million $18 million Global Principal Partners raised Global Principal Partners Global Principal Partners Global Principal Partners $175 million of receivable & structured the transaction and structured and raised new structured the transaction and consignment financing for raised $35 million of debt and market tax credit financing for raised $17.5 million of expansion this new company equity for this new company this strategic expansion project and growth capital June 2014 November 2014 March 2015 April 2015 Global Principal Partners Global Principal Partners Global Principal Partners Global Principal Partners
Since its founding eleven years ago, Global Principal Partners has structured and raised in excess of $6 billion of capital for its clients. During this same period, Global Principal Partners’ transactions resulted in the formation of ten new companies and the creation of thousands of high-paying industrial jobs. We are extremely proud of these accomplisments. For more information about Global Principal Partners’ continuing presence in Cleveland, Ohio, please contact Dave Stickler, senior managing director, at (216) 577-0645; Ahab Garas, managing director, at (216) 392-6431; Ari Levy, managing director, at (216) 577-7804; or Julie Payne, vice president, at (330) 908-0813. www.globalprincipal.com 20150427-NEWS--10-NAT-CCI-CL_-- 4/23/2015 4:04 PM Page 1
10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015
PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Same side Gone are the days when working a summer job during your teen years could earn you enough cash to cover the cost of college. Nowadays, working a summer job from birth wouldn’t even make a dent in the ever-escalating expense of higher education. You only need to look at these stats from the College Board. As a student entering college today, you can expect to pay, on average, for tuition and fees: $3,347 a year at a public two-year college, up 150% from $1,337 in 1984-85 (in 2014 dollars) $9,139 a year for an in-state, public four-year FROM THE PUBLISHER institution, compared to $2,810, a 225% increase from 30 years ago $31,231 a year for a private four-year school — an increase of 146% from $12,716 in 1984-85 Cleveland needs a thicker skin That doesn’t include boarding and meals, which add Last week, Boston Globe columnist Dan statement reminding Shaughnessy that, collective inferiority complex made the many thousands more on to the tab. Shaughnessy, in town for the Cavs-Celtics among other things, “our city is tough.” opinion of others so important. The des- The debate rages as to why college prices have series, turned his watch back 40 years and How embarrassing. peration in our reaction, to point out our increased at such a rapid pace. Cuts in state funding. wrote a column bashing Cleveland. You An attention-hungry columnist cob- wonderful assets, to correct the record, to Bloated administrations and salaries. Skyrocketing might have heard about it. bles together some tripe about Cleveland be viewed as a big-league town — it was student fees. Overbuilt campuses designed to attract “Downtown Cleveland is a — probably minutes before the exact opposite of big league. more students with amenities rather than academics sad space with many vacant his deadline — and suddenly Enough of the wounded and insecure buildings and boarded-up our top political leaders are act. (Look at our private dorm rooms! Our new recreation stores.” scrambling to respond? How about a different reaction? How center! Our athletic facilities!) “It feels like the local econo- As our region ascends into about no reaction at all? Gov. John Kasich recognizes the need to rein in these my runs on lottery tickets.” “new Cleveland” — vibrant, Twenty-five years ago when I was at stratospheric costs. In February, he challenged Ohio’s “Horseshoe Casino … it’s exciting, growing — we’re go- Ohio State, a preacher named Brother college and university leaders to lower costs by creating not Ocean’s Eleven. It’s more ing to need to shed some of Jed would set up shop on the Oval on an affordability and efficiency task force. like Atlantic City-on-the- our “old Cleveland” habits. sunny spring days and shout at sinner The University of Akron heeded Kasich’s call and Cuyahoga.” We’re doing a pretty good students as they walked past. Sometimes recently presented a plan to offer reduced-price general All that was missing was a JOHN job reversing the negativity. A a kid would stop and try to debate the education courses. Akron’s “GenEd Core” program will rehash of the “what’s the dif- recent survey shows that 54% guy, but it was pointless. feature a dozen introductory courses taught primarily ference between Cleveland CAMPANELLI of Cuyahoga County residents “Never argue with a fool,” Mark Twain online. Tuition for these courses would be $49 per and the Titanic?” joke. (An- would recommend Cleveland famously said. “Onlookers may not be swer: Cleveland’s orchestra is better.) as a tourist destination, up a whopping able to tell the difference.” credit hour instead of Akron’s usual $359 per credit After reading the piece, I felt sick. 20 percentage points from just three Shaughnessy is not much different hour – which the university says is half the cost at area It wasn’t the column that caused the years ago. than that apocalyptic preacher, although community colleges. nausea. A lazy journalist parroting an Our thin skin is a different story. Brother Jed was probably a better Northeast Ohio community college leaders raised a outdated narrative about Cleveland isn’t When Johnny Carson cracked jokes columnist. skeptical eyebrow and issued a statement: “While we worth the wasted bile. It was the reaction about Cleveland in the 1970s, we jammed New Cleveland is about more than ho- applaud the University of Akron’s efforts to provide a to the column that sickened me. the NBC switchboard and flooded Rock- tels, development, restaurants, conven- more affordable educational experience for students, … Local media outlets fumed. Sports talk efeller Center with letters. When Cincin- tions, neighborhoods and downtown liv- the idea conveyed by the university ... that this represents radio erupted. Online commenters nati Bengals coach Sam Wyche dissed ing. It’s about a different attitude, a quiet the most affordable rate in the region can be confusing leaned on the caps-lock button. “Dan Cleveland in 1989, you could grill muni- confidence that we all know is the truth: for both students and their families. When comparing Shaughnessy” began trending on Twit- lot bratwurst with the fury. This is a dynamite place. tuition and fees, the community colleges provide the ter. And, unbelievably, Cuyahoga Coun- Old Cleveland took insults personally, Budish is right that we are a tough city. ty Executive Armond Budish released a with hurt and anger. That’s because our Let’s stop bruising so easily. greater value and financial advantage for the students pursuing credentials, associate and bachelor degrees.” This is a fine example of the challenges Kasich’s task force faces in getting the parties involved — from state lawmakers to school administrators — to start working TALK ON THE WEB together to solve this problem. Community colleges are clearly part of the solution Re: After the Garfield else — including tornadoes, earth- was amazing. and have much to offer, including generally lower Building mess quakes, nuclear accidents, etc. While I’m happy Cleveland got to have — ClevelandBill the show this year, I’m not happy about tuitions. But it’s not community colleges vs. four-year The city of Cleveland uses housing in- universities. the way it’s covered. spectors as a political tool to extract con- All other award shows are broadcast All higher education players must cooperate, The practice of requiring inspections cessions and donations from any honest of homes and businesses is typically re- on one of the major networks so all the coordinate and embrace new ideas like Akron’s GenEd business that tells the city it’s building or garded as against the law and an inva- people that either purchase the music or Core. Cleveland State University had another good idea expanding. sion of privacy. buy a ticket to a movie get to see their fa- last year when it created a tuition-and-books credit Instead, why not inspect the buildings But the real issue is that the city does vorites shine in the spotlight (until the program for students who have at least a 30-hour where the GREATEST DANGER could not have adequate resources (cash and music tells them to move along). course load and maintain a 2.0 grade point average. It arise, like evacuating the Key Tower or qualified inspectors), and raising taxes But this award show “sold out” to encourages a faster, and therefore cheaper, path to this place falling apart. Instead, small and/or enacting more fees on business- HBO, and only the people that sub- graduation. businesses are treated by Father Cleve- es is (hopefully) a nonstarter. scribe to it will get to see it sometime in land as its little children to be watched Efforts to rein in tuition with legislation — the Ohio — dick kocuba May. over and certainly not trusted to build Seems the artists always have an legislature is currently hammering that out — will only things right. Re: A memorable Rock Hall opinion — I wonder how they feel go so far. We need more good ideas, and we need a Maybe it’s because the big buildings about the fans being snubbed for the higher education community willing to embrace them. come with big lawyers, and the city is induction, but … HBO money? more afraid of lawyers than anything Everything I read says the award show — Tom 20150427-NEWS--11-NAT-CCI-CL_-- 4/23/2015 1:12 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW Broadening our potential By JACK KLEINHENZ Perhaps the most important, Kleinhenz is CEO of Kleinhenz & however, is our broadband ranking. Northeast Ohio’s economy has Associates in Cleveland and an Two separate reports, TechNet’s gone through a renaissance, but we adjunct professor of economics at 2012 State Broadband Index and must continue our hard work to Case Western Reserve University. the State New Economy Index keep our region booming. ranked Ohio as 39th in broadband In this effort, there is no “silver In that research — derived from adoption and economic structure. bullet” to continuing the growth we the Ewing Marion Kauffman Foun- The question is: Why do I believe desire. dation, TechNet, the U.S. Depart- that broadband access is vital to the Instead, as we all work toward ment of Education, TechAmerica growth of our economy? economic prosperity, we must en- and other groups — I found that the The answer is clear — the invest- courage our elected officials to underpinnings of economic growth ment the state is making in human adopt an array of pro-growth poli- capital, research and development are multifaceted, and center on PROUD SPONSOR OF RACE FOR THE PLACE cies. four key areas: access to a reason- and technology entrepreneurship is For example, removing barriers able quality of life, development of interdependent on having the latest that do not prioritize innovation is STEM education, resources to ac- information and communications a critical priority to maintain and quire early-stage business funding, infrastructure. build upon a robust business cli- and access to high-speed Internet, Investment in Ohio’s networks Sunday, June 7 mate. or broadband. creates jobs, but also provides bet- BEACHWOOD PLACE Gov. John Kasich agrees and in- This year, I revisited my study ter and faster broadband services to REGISTRATION AT 7:30AM troduced language in the proposed and made some important updates. more businesses, consumers, state operating budget (House Bill Through my research, I found schools, farms, health care facili- 64) that will encourage the expan- Ohio ranks in the middle of the 50 ties, manufacturing companies and elkandelk.com/racefortheplace sion of high-speed Internet access states on multiple factors for eco- various other essential engines of — or broadband — to more areas of nomic growth with many crucial in- our economy. Ohio. With this important tool, our dicators lagging behind other We all want to see the continued local businesses and consumers states. growth of our economy, and pas- have the opportunity to flourish. In the key area of entrepreneurial sage of the House Bill 64 provisions In 2014, I published a study that activity, I found that Ohio fell from that reduce impediments and allow HOW BAD IS THAT LEAK? examined where Ohio fell in vari- 34th to 39th since my last study. Ad- for market-driven incentives to ous national rankings — reflecting ditionally, Ohio fell from 12th to guide private investment in the the policies that need to be promot- 15th in the PricewaterhouseCoop- Buckeye State Broadband networks ed or restructured to encourage ers Money Tree Venture Capital will provide a continued boost to economic growth. rankings in the most recent quarter. our economy in Ohio.
TALK ON THE WEB (CONTINUED) Re: Armond Budish’s changed by the digital revolution to vatives to go if they feel traumatized State of the County many-to-many. by this liberal agenda? address This means that dialog in social Or does that only apply when media confounds control of the conservative voices want to be Keep your assets safe by taking the time to ensure that problems It is refreshing to hear the upbeat message by traditional mainstream heard? and frank discussion in Mr. Bud- media because it cannot control it. — Writerjeff at the top of your building are not damaging your bottom line. ish’s State of the County presenta- The same can be said for the main- tion. stream models of corporate and Re: Toronto looks to I am particularly intrigued by the government public relations. learn from Cleveland Carey Roofing Corp. has eliminated asset damage due concept of a Silicon Valley in health Media organizations, and those care right here in one of the heavi- that rely on the traditional model, Seeing a very diverse city like to a leaking roof with practical solutions since 1946. est concentration of modern health which remain committed to the Toronto following Cleveland’s lead care centers in the country. broadcast model of one-to-many should send a message to all the lo- 216 • 881 • 1999 MEMBER: Recognizing the stark realities of will continue to lose ground regard- cal doubters. CAREY poverty is one thing, but identifying less of whether they are print or TV. Having spent time in Toronto www.careyroofing.com National Roofing discrete and tangible solutions is Innovation in engagement of read- some years ago and being back in Roofing Corp. Contractors Association another, and Mr. Budish appears to ers with the news via social media Cleveland for the last 20 years, I am founded in 1946 be going in the right direction. will increase market share, espe- excited about playing a more active — Eli Santiago cially with target audiences related role in continuing to keep Cleve- to the content offered to them. land in this leadership position. Re: The future of media That’s why it is called “social — Neil Dick media.” — Daniel Yurman It should not be news to a busi- Re: New Team NEO board ness paper as sophisticated as Walk Away Wealthy: Crain’s that the outbound media Re: Michelle Obama to chair speak at Oberlin College model of one-to-many, which has Jim Clay will help the idea of re- The Entrepreneur’s Exit-Planning been typical of the media’s rela- So, is this a “trigger event,” and gionalism for certain. tionship with its readers, has been will there be a safe place for conser- — Richard B. Playbook
Debunk the misconceptions, steer clear of common mistakes and walk away with maximum wealth in this GET DAILY NEWS ALERTS FROM CRAIN’S essential guide to selling your business.
REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: “Walk Away Wealthy is loaded with practical ideas you can use to maximize THE MORNING ROUNDUP: in the health care industry. Published Tuesday. the value of your business—to yourself and to the person you sell to.” The day’s business news from Ohio’s daily papers MANUFACTURING REPORT: A weekly guide to —Brian Tracy, Author of Now, Build A Great Business BREAKING NEWS ALERTS Northeast Ohio’s manufacturing sector. Published every other Wednesday. DAILY HEADLINES: Crain’s-produced news and blog “Launching a company without an exit plan is like building a car with no brakes. items from the day SMALL BUSINESS REPORT: A weekly guide to Walk Away Wealthy is a must-read for small business news. Published Thursday. anyone who is starting or has started REAL ESTATE REPORT: A weekly guide to real estate a business.” news. Published Monday. SHALE AND ENERGY REPORT: A weekly guide to —Marshall Goldsmith, Author of The New York Times and What Got You Here Won’t Get You There HEALTH CARE REPORT: A weekly guide of changes the energy industry. Published Friday. Download your FREE chapter from the book now by visiting: www.walkawaywealthy.com CRAINSCLEVELAND.COM/REGISTER 20150427-NEWS--12-NAT-CCI-CL_-- 4/23/2015 3:45 PM Page 1
12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015
Region’s job slump continues in March By JAY MILLER I’m not a matchmaker. [email protected] Although the March hit was negligible I’m an — a loss of 215 jobs — employment in Northeast Ohio continues a slump that began in January, according to the Ahola Crain’s Employment report “This month’s report shows a attorney slowdown in hiring and reflects that the and a region along with the nation have relationship experienced a soft patch in first-quarter growth,” wrote Jack Kleinhenz, the Cleveland Heights economist who builder. created the ACE model. Total employment dropped to 1,160,156 on a seasonally adjusted I know what it takes to grow a business. basis, from 1,160,371 working people It’s a melding of ambition and opportunity. in February, according to the regional A process of carefully matching potential employment model. Despite the sluggish employment with the resources to realize it. numbers, there is optimism that It’s about cultivating relationships. business is improving. For instance, the All while representing interests April economic outlook from PNC Financial Services Group Inc. reports and managing expectations. on a survey of Ohio small and middle I work with companies market business owners and shows at all stages of growth. them in an upbeat mood. The survey shows that 82% of business owners And represent funds and portfolio companies are optimistic or very optimistic about in their quest to invest. their businesses’ prospects, and 85% are either optimistic or very optimistic After years of leading our firm’s expansion, about their local economies. I’m acutely aware of the risks and rewards. “Ohio’s economy will pick up more So if you’re ready to grow, momentum in 2015,” PNC economist Mekael Teshome reported. or ready to invest, “Manufacturing will remain a primary I’m ready to do the deal. growth driver.” Hiring, however, is a different story. I’m IRA KAPLAN. Only 10% of survey respondents plan to add full-time employees in the I’m on your team. foreseeable future, and 56% haven’t increased staffing for at least 12 months. MY BENESCH MY TEAM But another indicator appears to be telling a more optimistic story. Simply Hired, an employment website that aggregates job listings from across the web, reported last week that the number of job openings > Managing Partner; Corporate & Securities Practice Group; in the Cleveland-Akron metropolitan Private Equity Practice Group area rose 1.98% in March. The site reported 48,161 job > Representing public and privately held growth companies; openings in March. private equity, subordinated debt and venture funds; portfolio “It’s been a little rocky in Cleveland companies. and Akron since October,” said Simply > Legal Services Include: Mergers and Acquisitions; Public and Hired marketing director Susan Private Debt and Equity Financings; Business Counseling. Martindill. “But it’s trending upward over the last couple months. What we see is > 216.363.4567 | [email protected] a bit of a leading indicator because it shows not just the availability of jobs but also a desire of companies to actively hire.” The ACE employment numbers are based on payroll data compiled by The Ahola Corp., a Brecksville payroll and www.beneschlaw.com human capital management firm. The figures come from 3,000 employers who use Ahola’s payroll processing service. 20150427-NEWS--13-NAT-CCI-CL_-- 4/23/2015 1:11 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13
Canton plant closing scrutinized SALT • SALT • SALT By DAN SHINGLER coworkers lost both their jobs and meet four criteria, Bixenstine said. It [email protected] health insurance on the same day. must be activity seeking capital, it • Water Softener • Industrial • Food Up until then, Dye said, employ- must have a realistic opportunity of The Worker Adjustment and Re- ees had been told by management obtaining it, it must seek capital suf- • Ice Melt • Sea Salt training Notification Act of 1988 was that the company was being sold to ficient to avoid or postpone a shut- passed to make sure employees Lyon LLC, which like Republic down and, finally, the employer were not blindsided when an em- makes storage lockers for schools, must act in good faith when it says Call For Pricing!! ployer laid off more than 50 people. industrial sites and other uses — and that disclosing the shutdown would Minimum Delivery: 1Pallet It requires an employer that is that Lyon intended to keep Republic have hurt its efforts to raise capital, closing a plant or laying off more and its employees in Canton work- he said. than 50 people to give the affected ing. Whether all of that happened workers advance notice of at least 60 Calls to the number left with would have to be determined with a days. In Ohio, that means filing a no- ODJFS in Republic’s filing went into thorough examination, presumably tice with the Department of Job and a voicemail that indicated it was full by the USW. But the situation points Family Services. and could not accept messages. out how the law and its exceptions But that’s not how things worked But the company’s letter to the can represent a sort of Catch-22 for out in Canton recently, when 270 state of Ohio indicates that it is like- employers and workers alike. employees of Republic Storage Sys- ly relying on a portion of the WARN “You see the dilemma here,” Bix- tems in Canton learned on April 10 Act that carves out an exception for enstine said. “The exception is basi- that they no longer had jobs. That a “faltering company,” said Bart Bix- cally there because companies that was the same day that the company enstine, a Cleveland labor lawyer are on the precipice and fighting to filed its notice with ODJFS that it was and partner at the Vorys law firm. survive can’t really tell employees closing the company. Employees Although he was not familiar with that (they are about to close) — be- found out when they went to work the Republic case specifically, Bixen- cause everyone will head toward the that they had no work to go to. stine said some of the company’s door.” Now, employees and their union, letter to the state of Ohio closely fol- But now, even if the company is the United Steelworkers, are trying lows what is in the law in terms of found to have violated the act, it ap- to figure out if Republic and its pri- faltering companies. pears the jobs are gone forever. Lyon vate equity owner, Philadelphia- The letter stated that the compa- went ahead and bought not the based Versa Capital Management, ny was trying to seek additional cap- company, but most of its equip- followed the law. ital or financing, which it needed be- ment, and moved it to Illinois, where “The International (Steelworkers cause of “business circumstances it now will make lockers under the Union) is investigating it,” said Chris that were not foreseeable and out- Republic name. Dye said she sus- Dye, recording secretary for USW side of the company’s control.” pects that was the plan all along, Local 2345 in Canton, which repre- “This letter is intended to meet though she said she probably can’t sented most of the plant’s workers. any notice requirements under the complain too much. Dye, who said she went to work federal WARN Act or similar state or “I think they wanted to buy us, for the company straight out of high local laws but the company does not shut it down and move out to Illi- school 40 years ago, already was on admit by giving this letter that notice nois — because we were going to do 1-800-547-1538 layoff from January. But on April 10, is required,” the letter also stated. the same thing to them when they Salt Distributors Since 1966 she found out that her layoff would To close without giving 60 days went bankrupt in 2013,” Dye said. be permanent, as she and her notice, a “faltering company” must “It’s bad karma, man.”
Solutions Realized Whether your business has plans to grow from within, make acquisitions, or recapitalize, one thing is clear: it’s critical to have a knowledgeable banking partner in your corner. That’s why businesses depend on FirstMerit Bank’s expertise in Business Credit and Sponsor Finance to help turn their plans into success. As a preferred capital provider for private equity groups, we’re here to listen, to learn, and to understand your business and your goals. Let us show you why these great companies chose FirstMerit Bank.
A portfolio company of: A portfolio company of: A portfolio company of: $62,500,000 $7,500,000 Undisclosed Amount Senior Secured Credit Facilities $8,000,000 Senior Secured Credit Facilities Senior Secured Credit Facilities Sole Lead Arranger, Senior Secured Credit Facilities Sole Lead Arranger & Sole Lead Arranger & Sole Bookrunner & Sole Lead Arranger & Administrative Agent Administrative Agent Administrative Agent Administrative Agent November 2014 November 2014 December 2014 January 2015
Leading Ohio-based Fluid Power Distributor A portfolio company of: A portfolio company of: A portfolio company of: A portfolio company of:
Undisclosed Amount $17,000,000 $22,500,000 Undisclosed Amount Senior Secured Credit Facilities Senior Secured Credit Facilities Senior Secured Credit Facilities Senior Secured Credit Facilities Sole Lead Arranger & Sole Lead Arranger & Sole Lead Arranger & Sole Lead Arranger & Administrative Agent Administrative Agent Administrative Agent Administrative Agent January 2015 March 2015 March 2015 March 2015
TO LEARN MORE, CONTACT: Doug Winget, President, FirstMerit Bank Business Credit, at 330-384-7448 or doug.winget@firstmerit.com. Brett Johnson, Managing Director, Sponsor Finance Group, at 330-996-8026 or brett.johnson@firstmerit.com.
Member FDIC firstmerit.com 4194_FM15 20150427-NEWS--14-NAT-CCI-CL_-- 4/23/2015 3:54 PM Page 1
14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015
PCS CONTAINER SALES LLC • (330) 696-6458 GOING PLACES Send information for Going Places to [email protected]
20’ One Way Units Container Box Store FOR SALE JOB CHANGES 20’ Used Containers FOR SALE ARCHITECTURE 40’ Used Containers BOSTWICK DESIGN PARTNERSHIP: David A. Brennan to director, Erie FOR SALE office; Vincent J. Antkiewicz to 40’ Used High Cube MANY USES interior designer; Charles E. Collings Containers FOR SALE Farm, Industrial, to architect; Emily E. Carr to Nitowsky Qiu Neate Sherwood Professional, Construction, CALL CAROL PACK graduate intern architect. School, On-Site Ground FOR PRICING CONSTRUCTION WESTFIELD INSURANCE: Kristine Level Storage Serving Northeast Ohio, West Virginia & Pennsylvania SIMON ROOFING: Rob Magada to Neate to national underwriting office regional sales manager. leader. CONSULTING LEGAL RISK INTERNATIONAL: Todd Miller TAFT STETTINIUS & HOLLISTER to chief growth officer. LLP: Addisah Sherwood to associate. DISTRIBUTION WALTER | HAVERFIELD LLP: Calta Kuykendall LEFF ELECTRIC: Dan Nitowsky to Diane A. Calta to associate. Avison Young president; Bruce Leff to CEO. WELTMAN, WEINBERG & REIS CO. point man; Jen Jurgelis and is pleased to FINANCIAL SERVICE LPA: Sharon Parker to Anthony Ruff to infrastructure welcome: DYKE YAXLEY LLC: Xiping Qiu to associate director, client operations. support engineers. tax senior. MANUFACTURING SKODA MINOTTI: Mark Thomas to TECHNOLOGY FRONTLINE INTERNATIONAL INC.: SHAKER: Rosemary Sirna to Jonathan E. Elson senior state and local tax consultant; Zachary Palazzo to sales manager. Megan Williams to senior HR manager, client services. Senior Associate – generalist; Robert Oriti to marketing MARKETING TRANSPORTATION coordinator. Tenant Advisory Group INNIS MAGGIORE: Brian ALL PRO FREIGHT SYSTEMS INC.: INSURANCE Trautman to web developer Scottie Roberts to dedicated accounts dispatcher; Chad Szychowicz to FEDELI GOUP: Jim DeLuca to NONPROFIT director, claims management; Leo brokerage dispatcher; Shelma Duval to data analyst; Megan Ewing, KOINONIA: Keith Poynter to Bockey to safety/compliance. Jackie Smith and Lisa Trnian to ac- program manager, waiver services. count managers; Matthew Garito to CFO and chief administrative officer; REAL ESTATE BOARDS CBRE INC.: Kevin Moss to Keith Hartzell to account executive; BRITISH AMERICAN CHAMBER OF Melissa Kulbago to benefit analyst. associate, retail services group. COMMERCE OHIO: Rob Whittall NEWMARK GRUBB KNIGHT HYLANT: Connie Semanco and Sue (Dyke Yaxley LLC) to president. Nisoff to senior client service FRANK: Dionne Kuykendall to senior administrative assistant. Avison Young is the fastest growing real estate services company in the world managers; Jennifer Dukuslow to client service manager; Jacqui TRANSACTION REALTY: Anne AWARDS 600 Superior Ave., East, Suite 910 Kleinpeter to client service specialist; Marie Rath to sales associate. Cleveland, Ohio 44114 216.609.0303 Andrea Stegmaier to senior client JEWISH FEDERATION OF avisonyoung.com service specialist; Diana Wallace to SERVICE CLEVELAND: Harley I. Gross client service assistant. LAZORPOINT: Andy Calori to received the Charles Eisenman Award.
INDEPENDENCE BEGINS WITH A CAPITAL “G”. Meet 6LQFH RXU IRXQGLQJ E\ WKH 3HZ IDPLO\ LQ ZH·YH UHPDLQHG FOLHQWIRFXVHG ÀQDQFLDOO\ sound, and proudly independent. As a privately-held trust company with $29 billion under management, we’re in a position of strength and we never struggle with competing priorities. ,QVWHDG RXU WHDP RI H[SHUWV FUDIWV D ORQJWHUP YLHZ RI \RXU ÀQDQFLDO IXWXUH DQG PHDVXUHV Brett! success solely by how well we manage wealth, from one generation to the next. The Wizard of Magical Custom Network Solutions & our President
Ethernet Internet Data Center Fiber Engineering & Consulting
Brett knows the importance of delivering best-in-class network solutions while providing a steadfast commitment to customer service that is unrivaled within the industry. There’s more to your Network than just wires.
See how Brett and the rest of the Everstream™ team can transform your business. visit everstream.net or call 216-923-2300
www.glenmede.com Glenmede’s services are best suited for those with $5 million or more to invest. To learn more, please contact Linda Olejko at 216-514-7876 or [email protected]
CLEVELAND • MORRISTOWN • NEW YORK PHILADELPHIA • PRINCETON • WASHINGTON, DC • WILMINGTON 20150427-NEWS--15-NAT-CCI-CL_-- 4/23/2015 1:08 PM Page 1
JOIN US AND SAVE WITHOUT SETTLING GET A $150 ACCOUNT CREDIT FOR YOUR BUSINESS for each smartphone line. New 2-yr activation on a $34.99 or higher plan req’d.
Get the coverage, speed and reliability your business needs with America’s Most Reliable Network. Experience why more small businesses choose Verizon than any other wireless carrier.*
AMERICA’S LARGEST AND MOST RELIABLE 4G LTE NETWORK
CALL: 1.800.VZW.4BIZ | CLICK: vzw.com/business-bill-credit | VISIT: vzw.com/storelocator
*Results based on third-party study. Account credit applied within 2-3 billing cycles. Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Offer expires 5/17/2015. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. © 2015 Verizon Wireless. I5423 20150427-NEWS--16-NAT-CCI-CL_-- 4/23/2015 3:48 PM Page 1
16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 Independence firm sets sights on aging advisers By JEREMY NOBILE books of other smaller money man- tions as similar groups across the In the late 2000s, Dawson as envisioned. [email protected] agers to grow his latest business. country also set sights on aging ad- Wealth Management, cofounded Mark Bonhard, a 72-year-old fi- Cirrus today has a staff of five visers mapping their way into re- by Heider in 1992, was planning nancial adviser at Cirrus who first Joseph Heider isn’t just expect- collectively advising on about $300 tirement. an accelerated growth path. began working with Heider at Daw- ing wealth advisers to retire in com- million for 300 clients, and the Nonetheless, Heider plans to The company was in talks with son and followed him to Rehmann, ing years. business is laying the groundwork grow Cirrus to $10 million in annu- private equity groups, Heider said. said Rehmann operated “more like a He’s banking on it. to begin acquisitions early next alized revenue in three to four But as those talks fizzled, Rehmann bank.” Heider in January founded Cirrus year. years, anticipating “we will need to entered the picture looking to repli- The outfit wasn’t suitable for pro- Wealth Management in Indepen- Heider said he is in talks with bring in six to seven adviser groups cate in Michigan and Ohio the ducing rainmaking advisers. Most dence after demerging his Dawson three groups around Cleveland and to do that.” mergers Heider’s team had already business referrals were coming di- Wealth Management firm in Rocky western Pennsylvania that each completed or had on the radar. The rectly from CPAs. represent about $250 million in as- Meanwhile, Rehmann never River from Rehmann, a Michigan- Better off alone two merged in 2010. Heider joined based financial services company. sets. as a partner. found a CPA partner in Cleveland as At age 60, Heider has no immedi- At 2015’s close, Heider expects A licensed pilot and self-de- “The whole idea was we’d lead expected, Bonhard said. Mergers, for ate plans to retire. Instead, he plans Cirrus will make at least $2 million scribed adrenaline junkie who the way in accounting firm mergers “various reasons,” just didn’t hap- to use the graying of the wealth man- in revenue. bungee jumped for his past birth- and look at wealth management ac- pen, Heider added. And the pay agement sector’s financial advisers Cirrus will face strong competi- day, Heider named Cirrus after quisitions,” Heider said. structure wasn’t preferred for the to his advantage by acquiring the tion in growing through acquisi- clouds suitable for smooth flight. But that relationship didn’t mesh former Dawson team — top-produc- ing advisers had income capped in- side the CPA firm. “The elements of the cultural mis- match were there,” Bonhard said. “It was an excellent firm. It just wasn’t a good fit.”
Searching for advisers TOP FIVE SIGNS YOUR EMPLOYEES MIGHT HAVE INFERIOR DENTAL COVERAGE : Cirrus is looking for advisers gen- erating at least $500,000 and above in revenue who are considering re- tirement.
“We’re looking for the THEY ONLY GET ONE CLEANING PER DECADE, PER HOUSEHOLD. adviser who still has a passion for the business, but would like to slow down.” – Joseph Heider founder, Cirrus Wealth Management THE DENTAL PLAN’S CUSTOMER SERVICE IS A 900 NUMBER. The firm wants to help those peo- ple craft succession plans for graying money managers looking to gradual- ly work their way into retirement. “We’re looking for the adviser who still has a passion for the business,” THEIR DENTIST THINKS ROOT CANAL IS LOCATED IN VENICE. Heider said, “but … would like to slow down.” Indeed, the pool of possible acqui- sitions is deep. According to 2014 research by Boston-based Cerulli Associates, which specializes in global asset MOLARS ARE CLASSIFIED AS “OPTIONAL.” management and distribution ana- lytics, almost one-third of advisers plan to retire within the next decade while an estimated 200,000 advisers may retire by 2022. The average age of advisers is about 50, while 43% of all advisers are 55 or older. Many wealth managers are taking a similar approach, creating stiff competition for acquisitions. “As advisers begin to retire, a larg- er number of sellers will enter the market,” said Kenton Shirk, associ- ate director at Cerulli, in an October 2014 report. THEY DON’T HAVE DELTA DENTAL. “Practices that are heavily weight- ed with older clients are less desir- able because they have less potential to generate future cash flow. Retired clients are also inclined to deplete asset balances as they withdraw money for living expenses.” Give your employees access to two large networks of Shirk also notes a trend that advis- ers in many cases are asking for contracted dentists and award-winning customer service. triple the value of revenue generated by their books. deltadentaloh.com/dentaldonebetter Heider is not dismayed by the Learn more at . challenges. “I’m still competitive, I still enjoy the game, and I still love this busi- ness,” Heider said. “I get a thrill out of working with clients directly and running the busi- ness. And I think if you still have the drive at whatever level you’re oper- ating at and are still enthused by it, then age certainly has a role, but I don’t look at it as a limitation at this point and time.” 20150427-NEWS--17-NAT-CCI-CL_-- 4/23/2015 4:21 PM Page 1
APRIL 27 - MAY 3, 2015 CRAIN’S CLEVELAND BUSINESS 17 ILLUSTRATIONS BY JEAN TUTTLE 20150427-NEWS--18-NAT-CCI-CL_-- 4/23/2015 4:22 PM Page 1
18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 FAIRS & FESTIVALS WHERE TO SIT RACHEL ABBEY MCCAFFERTY, MANUFACTURING REPORTER STAN BULLARD, SENIOR REPORTER, REAL ESTATE It just doesn’t feel the upkeep of the 117-acre fairgrounds, Traci said. No matter how sizzling the heat gets in the summer in Cleveland, like summer in Ohio This year’s fair will be held from Aug. 10 to 16 and it’s great to go out for lunch downtown. until I get one of those will feature a lot of familiar attractions, including No, I don’t mean the terrific restaurants with ubiquitous patios. Nor sticky-sweet lemon the demolition derby, live music and more than do I mean patronizing trendy food trucks. They’re great, but I am refer- shake-ups to carry 100 food stations. And as always, there will be ring to grabbing a sandwich packed at home or quickly buying one. around the fair. thousands of animals on display — I’m personally a Use those minutes to enjoy the city and soak up what sun this often Any fair will do. fan of the baby goats and the bunnies. cloudy place gets. When summer hits, I And the fair doesn’t have to just serve as enter- Each district downtown has a sound and temperament all its own. want nothing more tainment. For families, it can be an educational ex- After years of working downtown, I’ve still got a few good ones to ex- than to be outside, which makes whatever’s in town perience, too. Traci mentioned that a lot of people plore. However, I have some favorites. Most are a short walk from a great option. There’s usually live music or some like to bring their children to the fair to see where anywhere downtown. other kind of entertainment, cool arts and crafts to their food comes from before it gets to the gro- For an experience somewhat like lunching atop a mountain, try the peruse and a seemingly endless amount of food to cery store. (A word of warning to parents, though: grounds of Carl B. Stokes U.S. Courthouse, 801 W. Superior Ave., choose from — the options at most festivals have if your kids don’t like what they learn, you may end next to the Cuyahoga River valley. expanded so much in recent years that even a up with a preschool vegetarian on your hands. I Landscaped terraces line the slope between Huron Road and Canal longtime vegetarian like myself has no problem know from experience.) Road. Benches are located on various levels. The panorama ranges finding something for lunch. One of the other big events at the Cuyahoga from construction of the Innerbelt Bridge to Lake Erie, with river traf- I have to trace this fondness back to my home- County fairgrounds this year is Berea’s National Rib fic to spice things up. Chances are you will dine alone, although the town’s annual festival, which, for three days every Cook-Off from May 22 to 25. And I’d check cuy- U.S. Marshals Service strolls through. summer, gave my friends and me somewhere to fair.com for updates on what’s happening at the In the Flats, there’s the east end of the Superior Viaduct, a stub of wander that wasn’t the mall. Thanks, Cortland fairgrounds in Berea throughout the spring and an old bridge that serves as a park. On the East Bank, there’s Set- Street Fair. summer. The Marc’s Great American Rib Cook-Off tlers Landing on Old River Road. The riverfront site where the city’s Seriously, though, in Cuyahoga County, there’s a & Music Festival also is being held from May 22 to namesake, Moses Cleaveland, came ashore in 1796 is a terrific, grassy park. A close-up look at a passing ship as tall as an office fair for everyone, from those celebrating a particu- 25, but it’s at Jacobs Pavilion at Nautica. building is the kind of thing people travel for — yet it can be part of a lar cultural heritage to the home days celebrations There are also a variety of cultural fairs and festi- Cleveland work day. in the suburbs to the competitive rib burnoffs. vals throughout Cuyahoga County this summer, in- Even before the Cleveland Convention Center was finished in 2013, And no list like this would be complete without cluding the Cleveland Asian Festival (May 16 to the downtown Cleveland Mall was great. Now it’s even better. High mentioning the Cuyahoga County Fair, which will 17), the Tremont Greek Festival (May 22 to 25), quality tables and benches replaced the old wood ones. Giving the re- celebrate its 119th year this summer. The fair has Cinco de Mayo Cleveland (May 29 to 31), the Ital- built convention center a Lakeside Avenue entrance also gave the mall been a near annual tradition since 1893, missing ian American Summer Festival (June 26 to 28) and a grassy slope that produced a promontory overlooking the lakefront only three years in that time: 1932 because of the the Cleveland Irish Cultural Festival (July 24 to 26). and skyline. Planes landing and taking off at Burke Lakefront Airport Great Depression, and 1942 and 1943 because of More information can be found on all of these fairs and passing ships keep the view changing. Although it seems more World War II, said public relations and media am- on their respective websites. popular than ever, the mall still has lots of elbow room at lunchtime. bassador Candyce Traci. I have to admit that I’ve never been to the Ohio Among all these appetizing locations, the dessert is Eastman Reading The fair is the signature event for the Cuyahoga State Fair, but for anyone up for a road trip, that Garden. Tucked between the two buildings of Cleveland Public Library’s County Agricultural Society and raises money for will be July 29 to Aug. 9 in Columbus. main branch, 325 Superior Ave., it’s a serene spot that is closed in the winter. Step inside in the summer and enjoy public art and landscaping. Go early or late, though: seats are scarce at noon weekdays. There are some drawbacks. Sea birds near the lake or river may eye your sandwich or worse. Sitting near a foun- tain, a brisk wind may give you a show- er. Otherwise, the only thing that damp- ens this summer fun is a downpour. Even if the temperature spikes too high, remember that winter will return too soon.
PLAN YOUR WORKPLACE RETREAT Common Ground corporate BECAUSE THERE IS NOTHING retreats combine challenging SMALL ABOUT YOU. ŽƵƚĚŽŽƌ ĂĐƟǀŝƟĞƐ͕ ƉƌŽĨĞƐƐŝŽŶĂů growth programs and team- ďƵŝůĚŝŶŐ ĞdžĞƌĐŝƐĞƐ ƚŽ ĚĞǀĞůŽƉ National Small Business Week your associates’ leadership skills is May 4th — May 8th. ĂŶĚƉŽƚĞŶƟĂů͘ #SBW2015 “Combining the Canopy Tour with CoxBlue.com a half-day Leadership Retreat at Common Ground was the best retreat I’ve had with my team!” X Allison M. Boersma, &K͕KKZŝĚĚĞůů
© 2015 Cox Communications, Inc. All rights reserved. www.commongroundcenter.org or (440) 707-2044 20150427-NEWS--19-NAT-CCI-CL_-- 4/23/2015 3:19 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 MUSIC TIMOTHY MAGAW, HEALTH CARE REPORTER
Some of the summer’s biggest tours — The Rolling Stones, most notably — might be skipping Cleveland this summer, but that doesn’t mean there’s a shortage of fine performances coming through the birthplace of rock ‘n’ roll, particularly at some of Northeast Ohio’s more eclectic venues. I suppose the One Direction performance at FirstEnergy Stadium (Aug. 27) was poised to be the must-see show of the summer, but now that Zayn has left the band, why even bother? I’m being facetious, of course. This is a city built on serious music, and as Crain’s resident music snob, I can say that there’s plenty to take in this summer. First off, the Beachland Ballroom — the city’s best venue, in my opinion — has some solid acts coming through over the next sev- eral months, most notably indie-rockers Ba- hamas (June 17) and The Antlers (May 15). If you’re looking to take in some good jams and the region’s (hopefully) great summer weather, look no farther than Cain Park, which boasts a quaint amphitheatre (think of it as a smaller Blossom with more character) in Cleveland Heights. I’ve seen Fiona Apple there twice — both unforgettable performances on beautiful summer nights. DINING AL FRESCO This summer, the venue has secured Bela ELIZABETH MCINTYRE, EDITOR Fleck with Abigail Washburn (June 26) and Southside Johnny (Aug. 15). Don’t forget Patio weather is finally here, so let’s do lunch. your mosquito repellant, as it can get a little One of my favorite things to do when the weather warms up is to dine al fresco. We’ve got five buggy. Skip the Beach Boys (Aug. 1), glorious months to eat outdoors in Northeast Ohio and dozens of open-air eating options. So get though. Seeing a Mike Love-led “Beach out there for lunch, dinner or drinks and enjoy a warm breeze while talking business — or just Boys” (the quotation marks are meant to shooting the breeze. Here are 10 of my favorite warm-weather, open-air dine-and-drink spots in cast sarcasm) lineup is like opting for drink- the NEO, some downtown, some east and west: ing mud out of the Cuyahoga River instead of one of Great Lakes Brewing Company’s ELEMENTS L’ALBATROS exquisite libations. 2300 Euclid Ave., Cleveland, 216-802-3131 11401 Bellflower Road, Cleveland, 216-791-7880 Speaking of the river, Jacobs Pavilion at [email protected] albatrosbrasserie.com Nestled on the campus of Cleveland State University, the Elements patio One of University Circle’s gems, L’Albatros features a patio perfect for a Nautica in the Flats is still a fine place to see manages to feel secluded and urban at the same time. sublime dining experience or a casual cocktail hour with friends. a show in the summer. GREENHOUSE TAVERN NIGHTTOWN Some of this year’s notable acts include 2038 East Fourth St., Cleveland, 216-443-0511 12387 Cedar Road, Cleveland Heights, 216-795-0550 The Avett Brothers (Aug. 20) and Jackson thegreenhousetavern.com nighttowncleveland.com Browne (Sept. 8). Whether dining on the rooftop deck or the street-side patio, you’re in for The venerable Cleveland Heights restaurant and concert venue features Less notable acts, but likely well-attended some of the best people watching in downtown Cleveland at Green- two partially enclosed outdoor patios, one with a waterfall and the other, house Tavern. a fireplace. events, include Third Eye Blind with Dash- board Confessional (May 29) and Weird Al THE HARP STONE MAD 4408 Detroit Ave., Cleveland, 216-939-0200 1306 W. 65th St., Cleveland, 216-281-6500 Yankovic (May 30). Plus, the performers are the-harp.com Stone Mad’s beautifully crafted stone patio features a towering fireplace usually taken aback by the giant barges that This is the Midwest at its finest — gritty with a side of pretty. Sit on the and outdoor furniture made from sandstone. You also have to love an coast down the river directly behind the deck at this Irish pub and take in Lake Erie, the industrial Flats, down- Irish pub that sports a bocce court, a salute to the establishment’s past stage, which makes for good stage banter. town Cleveland and the West Shoreway while enjoying lunch a short as an Italian social club. drive from downtown. For the last few years, the Rock and Roll PIER W Hall of Fame had hosted a superb free con- HOULIHAN’S WESTLAKE 12700 Lake Ave., Lakewood, 216-228-2250 25651 Detroit Road, Westlake, 440-808-9090 selectrestaurants.com/pier cert series outside the museum in the sum- houlihans.com/my-houlihans/Westlake Hands down, Pier W has the best views of downtown Cleveland, Lake Erie mer, but it has recently morphed into its Son- Twenty minutes from downtown, Houlihan’s Westlake offers a suburban and the glorious sunsets on the North Coast. The rooftop patio, which ic Sessions program — for which tickets will escape with an expansive patio tucked away in a grotto-like setting. opened in 2013, is the latest addition for the 50-year-old restaurant. cost $5.50. HODGE’S PLAYERS ON MADISON But if you’re still on the prowl for free 668 Euclid Ave., Cleveland, 216-771-4000 14523 Madison Ave., Lakewood, 216-226-5200 shows, check out Wade Oval Wednesdays, a thedriftwoodgroup.com/restaurants/hodges playersonmadison.com With an outdoor bar that stretches the length of the restaurant, Hodge’s The patio doesn’t look like much when you pull into the parking lot, but free evening concert series that kicks off large patio sits back from Euclid Avenue and is the perfect gathering once you sit down, you’ll discover a secret garden retreat, albeit a tiny June 17 in the heart of University Circle. spot for diners looking to meet somewhere in central downtown. one, in the center of Lakewood. 20150427-NEWS--20-NAT-CCI-CL_-- 4/23/2015 4:12 PM Page 1
20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 BASEBALL KEVIN KLEPS, ASSISTANT EDITOR, SPORTS It was only April 12, and the weather app on my phone said it was just a couple degrees north of 60, but it felt like July. I took my 6-year-old daughter to her first Cleveland Indians game of the season, and she couldn’t have cared less that the Detroit Tigers completed a three- game sweep of the Tribe that day. She was more con- cerned with a different type of competition — the Tribe Tracker, which is located in the concourse outside the renovated Kids Clubhouse. It allows youngsters to race against a moving red light that represents the person or mascot (in her case, Ketchup) of their choice. Field’s five neighborhoods. There’s Great Lakes Brewing, league affiliates within a short drive of downtown. The Inside the Kids Clubhouse, there’s a slide that takes up Barrio, Melt, Dynomite Burgers and — my daughter’s fa- Lake County Captains play at the beautiful Classic Park in both stories of the renovated space, along with interactive vorite — Sweet Moses. The renovated ballpark is ideal Eastlake. This year, three of the Indians’ top 10 games (the digital locker, a touchscreen display that lets for kids, it has social areas that cater to millennials and, prospects opened the season with Lake County. The ball- kids pick an item and watch as their favorite Indians play- for the old-school types who keep score by pencil and park, in its 13th year, has a terrific promotional calendar, er describes what they’re seeing, is very cool) and plenty not by staring at their phones, there’s still plenty of great which is highlighted by Christmas in July Weekend on July of Step2 toys for the toddlers who have grown tired of spots to watch a baseball game. If you’re in the latter 18 and 19, and the seventh annual Cleveland Sports His- watching David Price take 30 seconds between pitches. group, we suggest sitting in one of the three rows of tory Night on Aug. 1. The Akron RubberDucks have one For the adults, The Corner, the new two-story bar in the seats that are in front of the new bullpens in center field. of the best nicknames and logos in all of minor league Right Field District, is an excellent spot to watch the game The view of the field is perfect, and you’ll be able to heck- baseball, and the 18-year-old Canal Park now features in a setting that’s unlike almost any other in the area. le every Tigers reliever whose turn it is to warm up. Jobu’s Craft Beers (a 24-plus brew selection in the con- If you’d rather sample some Northeast Ohio staples, a If you, like me, can’t get enough baseball in the sum- course behind home plate) and White Castle sliders. few feet outside of The Corner entrance are Progressive mer, we’re also fortunate to have two Indians minor- Take in a game or 10, and experience so much more.
WHISKEY ISLAND JAY MILLER, GOVERNMENT REPORTER It was crowded for a weekday. The sun was on its way down, and boaters, friends and friend wannabes had found their way to Whiskey Island from their offices, peeled off the jackets and pocketed the neckties, or else they were decked out casual-sloppy … Whiskey Island isn’t an island at all; it’s a peninsula, bounded on two sides Collective Experience. by the Cuyahoga River and Lake Erie and connected to Cleveland at West 54th Street … and got its name way back in the 1830s when a distillery Collaborative Culture. sprang up there. — From “Whiskey Island” by Les Roberts Creative Solutions. The distillery, of course, is long gone. In its place, though, is Wendy Park and the Whiskey Island Marina. The 70-acre spot of green tucked between an ore boat dock Beyond Legal Advice… and the mouth of the Cuyahoga River have been operated in recent years by several owners under a policy of benign neglect, Real Business Solutions with ragged gravel roads, unlined parking areas and the occasional rusting hulk. Still, it drew crowds of Clevelanders looking for a place to dock a boat, bask in the summer sun, maybe play a little beach volleyball and — some things never change — get a drink. Q Q Oil and Gas Q Tax Consulting and Arbitration and This year, though, the park and marina at Whiskey Island will be un- Mediation Structuring for Real der new, more skilled, management. Q Public Finance Estate Investments Q Construction Law The Cleveland Metroparks on Jan. 1 took over operation of Wendy Q Real Estate Transactions Park from Cuyahoga County. Long term, the park system is working Q Title Insurance Litigation Q Environmental Law on a master plan to guide a $6 million renovation of the park.
Q Real Property Tax Q Q Insurance Recovery Zoning and Land Use For this season, operations will continue as they have in the last few Actions for Policyholders Valuation Complaints Planning years with just a bit of sprucing up. The volleyball courts will be open and the park will be available for rent for special events. What had been the Sunset Grille, a super casual bar and restaurant, For more information, contact Tom Gatt ozzi or Jim Dixon at 216.830.6830. will become the Whiskey Island Still and Eatery under a new operator. Metroparks spokesman Joe Yachanin said that the restaurant and the marina will be operated by FDL Marina, though no opening date has Cleveland Q Akron Q Lorain County Q www.brouse.com been set. But work is underway to upgrade the property. “The initial focus will be on bringing the levels of safety and security 600 Superior Ave. East, Suite 1600, Cleveland, Ohio 44114 up to the standards of the rest of the (Metroparks) properties,” Yachanin said in an email. “The Park District is also planning to repair Phone: 216.830.6830 Fax: 216.830.6807 the potholes on the gravel service road that runs toward the river along the south border of the property.” 20150427-NEWS--21-NAT-CCI-CL_-- 4/23/2015 3:19 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21
and a couple of blueberry pancakes, take a walk and — if opt to visit Starbucks or Yogurt Vi for a treat, cop a EASY LIVING back and knees are permitting — shoot some baskets at squat on a nearby bench and listen to a few tunes. the Metroparks Euclid Creek Reservation. Sunday If I’m with friends, we grab a patio table at one of the DAMON SIMS, WEB EDITOR evenings are reserved for checking out the latest block- restaurants — Brio, California Pizza Kitchen, Bar Louie buster in theaters. “The Avengers: Age of Ultron” and “Max or Stir Crazy — order a few appetizers, a few beverages I prefer to keep it simple Max: Fury Road” are already marked on my calendar. and enjoy the scene. As for the music, it is about what during the summer months. Saturday evenings are spent at Legacy Village in Lynd- you would expect at a free neighborhood concert. The season should be hurst. The routine rarely changes. You won’t find any of the bands playing here on Bill- soothing and relaxing. The ef- Legacy Village has plenty of family events throughout board’s Hot 100, but they are talented and play a familiar fort to enjoy yourself should the summer — 5K races, art walks, food truck days — mix of pop, rock, Motown, blues, swing and jazz. The not feel like a second job. but my favorite no-fuss summer activity is to check out musical selections are songs that we all know, and we Fridays after work I enjoy the small Legacy Live music sets. can’t resist tapping our feet, clapping our hands and eating sushi and sipping Hon- This summer the shows are every Friday and Saturday singing along. Think of it as listening to a good to great ey and Hendricks at Sasa on from May 22 through Sept. 26, 6:30 to 9:30 p.m. The wedding band, minus the wedding. Shaker Square. If you choose to visit there, try the Fire Roll setting is very informal. The shows are free, parking is The best part is the flexibility. If you don’t like the mu- and the vanilla, chocolate and green tea crème brulee trio, free, and seating on the lawn in front of the stage area is sic, it’s not the end of the world. You can still do a little you won’t regret it. On Sundays, after briefly working in the on a first-come, first-serve and bring-your-own-chair basis. shopping, get a decent walk in around the complex and mornings, I head to Yours Truly, have a Palermo omelet I normally skip the lawn altogether. If flying solo I often still have the rest of the night free.
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher: John Campanelli ([email protected]) Editor: Elizabeth McIntyre ([email protected]) Managing editor: Scott Suttell ([email protected]) Sections editor: Amy Ann Stoessel ([email protected]) Associate Editor/Akron: Sue Walton ([email protected]) Assistant editor: Kevin Kleps ([email protected]) Sports Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Rachel McCafferty ([email protected]) Manufacturing and energy Jeremy Nobile ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Art director: Rebecca R. Markovitz ([email protected]) Events manager: Jessica Rasmussen ([email protected]) Special events coordinator: Kim Hill ([email protected]) Marketing strategist : Michelle Sustar ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Senior account executive: Dawn Donegan ([email protected]) Account executives: Lindsie Bowman ([email protected]) John Banks ([email protected]) Laura Kulber Mintz ([email protected]) Rob Divine ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Web Editor: Damon Sims ([email protected]) Digital strategy director: Nancy Hanus ([email protected]) Audience development director: Eric Cedo ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Billing: Lana Semaan, 313-446-6091 ([email protected] ) Credit: Todd Masura, 313-446-6097 ([email protected]) Customer service/subscriptions 877-824-9373 Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Chris Crain: Executive Vice President, Director of Strategic Operations KC Crain: Executive Vice President, Director of Corporate Operations Dave Kamis: Vice president/production & manufacturing Anthony DiPonio: Chief Information Officer Thomas Stevens : Chief financial Officer Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20150427-NEWS--22-NAT-CCI-CL_-- 4/23/2015 3:28 PM Page 1
22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 AMUSEMENT PARKS AMY ANN STOESSEL, SECTIONS EDITOR There’s a video my husband took a few years ago of my daughter and me rid- ing the Little Dipper roller coaster at Memphis Kiddie Park. I’m a big enough person to admit that it wasn’t my then-4-year-old daughter causing the ear-piercing ruckus you hear when you watch that footage. It was me. Memphis Kiddie Park in Brooklyn has been a favorite of Northeast Ohio families since 1952. It features a concession stand, miniature golf course and 11 amuse- ment rides for children, including the Little Dipper, which is considered to be the oldest steel kiddie coaster in North America, according to the park’s website. In my defense, while I used to love going to Cedar Point, the old Geauga Lake and, yes, at one time Memphis Kiddie Park, it had been many moons since I had been on an amusement ride, even if it was one designed for the toddler set. So when we visited Memphis Kiddie Park a few years ago, it served as both a walk down memory lane and as a reintroduction to the thrill of roller coasters and other spinny, twisty attractions. Of course, Memphis Kiddie Park not only gave me a renewed taste for the fun of amusement parks, it also whet the appetite of my thrill-seeking daughter. So, for her 6th birthday last summer, my husband and I decided to give Cedar Point a try. It had been almost 16 years since I had been to the “roller coaster capital of the world.” The last time I was there, the park had yet to see the likes of Millennium Force (2000); Wicked Twister (2002); Top Thrill Dragster (2003); maXair (2005); Skyhawk (2006); Maverick (2007); WindSeeker (2011); and GateKeeper (2013). Needless to say, I found things had changed a bit from the last time I was there. While Cedar Point offers four children’s areas — Planet Snoopy, Kiddy Kingdom, Camp Snoopy and the Gemini Midway Area — my daughter set her sights a little higher after squeaking by the more re- strictive height limit. As a result, she was able to ride some of the big- ger rides, which meant I was able to ride some of the bigger rides, too. Not the really big ones — thank goodness — but just enough to get me screaming again. With summer on the horizon, she’s already talking about going back to Cedar Point, and I’ve already started thinking about how much she has grown. Not be- cause I’m getting nostalgic, but because soon enough she’ll be pushing up against meeting the next height requirement. I sincerely doubt we’ll be able to take in this year’s newest Cedar Point attrac- tion, Rougarou (it’s floorless!!), but it won’t be long until we can. So here’s some advice: This summer, if you have little kids, do yourself a favor and visit Memphis Kiddie Park. It opens for the season May 2. But, if you really want to get into the action and feel like a kid again, you may want to head over to Sandusky and take in a day at Cedar Point. It opens for the season May 9. You might even get a chance to hear me shrieking. Because with every inch that my daughter grows, the closer I get to those really big rides again. ICE CREAM CHUCK SODER, TECHNOLOGY REPORTER I eat roughly 13 times as much ice cream as I did 10 based chain that now has several Northeast Ohio loca- ful vintage décor. years ago. tions. I go there for their cinnamon bun flavor. Be sure to Next, I’m being told I need to visit Honey Hut. Their first What changed? I met my wife — and her father. put cream cheese frosting on it. (Side note: Don’t mix store in Cleveland’s Old Brooklyn neighborhood used to I once overheard an employee at the Lakewood chocolate flavors with fruit flavors. I have done that. It is be a shoe repair shop. I’m sure it smells much nicer to- Menchie’s tell another customer about some guy who had nasty.) day. Only then will I be a true expert on West Side ice racked up a ridiculous amount of “mySmileage” points. You already know that Mitchell’s Ice Cream produces a cream parlors. That was almost certainly him (he has $85 worth!). quality product. But if you haven’t visited their store on However, I will throw a bone to the East Side. Colum- We join him for countless trips to get ice cream. Or he West 25th Street in Cleveland, it’s worth checking out. bus-based Jeni’s Splendid Ice Creams makes some drops it off at our house, without warning. Behind the counter, you can see the kitchen where tasty, creative flavors. And their only Northeast Ohio Thus, I am uniquely qualified to tell you that you need Mitchell’s makes ice cream and other food for all of its store is in Chagrin Falls. to get a chocolate “concrete” with peanut butter sauce eight locations. To their credit, it was immaculate when I Last but not least, I’ll give from East Coast Original Frozen Custard. Over the past stopped by in January. (Yes, I eat ice cream in the dead a shout out to one Akron ice six years, I’ve probably eaten 48 of them, all from East of winter.) cream parlor: Stricklands Coast’s Fairview Park store. Most of them were reason- If you like Belgian chocolate and vanilla from Madagas- Frozen Custard. Our health ably sized “minis.” Some were the “regular” size — car, try Sweet Moses in Cleveland’s Gordon Square Arts care reporter, Tim Magaw, which means huge. District. Personally, I don’t care for fancy foreign ingredi- worked there back in high Custard ice cream contains egg yolk. Not great for ents. I just know that Sweet Moses convinces me to eat school. He recommends your diet. Frozen yogurt is (somewhat) healthier. But large quantities of ice cream, piled atop a brownie. I two flavors: Banana and that’s not why I like Menchie’s — an 8-year-old California- would hate myself, if I wasn’t surrounded by such beauti- Reese’s Peanut Butter Cup. 20150427-NEWS--23-NAT-CCI-CL_-- 4/23/2015 3:27 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 MOVIES SCOTT SUTTELL, MANAGING EDITOR
The sun. The beach. The movies somehow seemed better at the drive-in, You can bring food, but as a notice on the drive-in’s Temperatures in the 90s. too. My favorite drive-in movie was the 1973 sci-fi dra- website says, “Theaters make little money on the admis- We’re supposed to love ma “Westworld,” about a futuristic theme park where sion cost because a large percentage has to be re- summer for all these paying guests can pretend to be gunslingers in an artifi- turned to the film distributors. The drive-in’s main source things. I dissent. Who cial Wild West populated by androids. of income is its concession sales. Keep your drive-in in needs three months of What I’m sure was a cheesy movie thrilled and terrified business; visit the snack bar often!” sunburns, sand in weird me, watching while packed into the car with my siblings. West Siders might be more partial to North places and sweat pouring (I’ll bet “Paul Blart: Mall Cop 2” is more tolerable with a Ridgeville’s Aut-O-Rama Drive-in, built in 1965 by the into the eyes? car full of family or friends.) Sherman family and still owned and operated by third- Summer fun to me as a kid, and now as a pushing-50 The economics of the movie business haven’t been generation family members. It has two screens, so adult, could be found in two places where the sun does- too kind to drive-ins, but there are still plenty of options, there are lots of choices. There’s no outside food or n’t shine — air-conditioned movie theaters during the most of which operate April through sometime in Octo- beverages allowed, so you’ll need to be prepared to hit day, and drive-ins at night. ber. the snack bar. Drive-in movies, in particular, thrilled me as a child. It I went to high school in Geauga County, so I’m partial The best movies at drive-ins tend to be loud, with lots felt a little transgressive, being out so late, waiting for to the Mayfield Road Drive-In, a single-screen theater of action and explosions. Hollywood, you will not be sur- the sun to go down so the movie could start. open on the weekends in the spring, then seven nights a prised to know, has lots of those movies for you this There was an element of chance, too, in whether week once summer hits. You can get there at 7:30 p.m. summer. you’d pick a pole that had a good soundbox to attach to to pick your spot, and there’s room to throw a Frisbee Among your best options: “Avengers: Age of Ultron” the car window, or if you’d wind up with one that was or football before the movies start, if that’s your kind of (May 1); “Mad Max: Fury Road” (May 15); “Jurassic scratchy all night. And it was such a deal — two movies! thing. It’s still a deal — $20 a carload. And those World” (June 12); “Ant-Man” (July 17); “Mission: Impossi- (If you could stay awake all the way to the end of the scratchy soundboxes have been replaced with clear au- ble — Rogue Nation” (July 31); and “The Fantastic Four” second one.) dio offered via FM radio. (Aug. 7).
DID YOU 256> Nesco Resource software engineers helped develop the systems behind Q many of America’s cashless toll roads?
Nesco Resource is the answer for matching excitingg talenttalent with great opportunities, making us the largest nationalonal staffing firm headquartered in Northeast Ohio. To findnd the talent you need, or your next opportunity visit: www.nescoresource.com
(5LZJV0UJ*VTWHU` Best of Staffing awardA winners four years in a row. THE BOLER PROFESSIONAL MBA
For more than 40 years, John Carroll University’s MBA
program has empowered the region’s business professionals
to generate and implement innovative business ideas.
From day one, you’ll gain skills and strategies that you can immediately
use in your job. You’ll partner with the region’s best companies and business
leaders to solve real-world challenges they face. You’ll learn to lead ethically
and with integrity.
Learn more and apply at go.jcu.edu/mba phone: 216.298.9131s email: [email protected] s view: zackbruellevents.com 20150427-NEWS--24-NAT-CCI-CL_-- 4/23/2015 3:31 PM Page 1
24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 ANTIQUING REBECCA R. MARKOVITZ, ART DIRECTOR As someone who loves road trips and traveling, tion that brings everyone together,” Racin said. one thing is a constant. No matter where I end up Another event I was excited to check out last on vacation, I try to schedule in time to find an an- summer was the ever-growing Cleveland Flea, a tique store or flea market to browse. So when I well-organized and curated “monthly urban treasure moved to Cleveland a little over a year ago, I felt hunt,” as it is described on the website (www.the- like I had hit the jackpot. clevelandflea.com). While driving around trying to get my bearings, Founded in 2013, the Flea is next scheduled for one of the first things I was struck by was how May 9. It will boast more than 95 handmade and many vintage shops line the streets, and how dan- vintage vendors, and an impressive lineup of more gerous that could be for my wallet. In Lakewood, than 40 food and drink vendors. The Cleveland where I am calling home these days, Flea runs from 9 a.m. to 4 p.m. and the shops along Detroit Avenue, from tends to be very busy, so try to go Roycroft to Edwards, are the perfect early. place to spend a Saturday afternoon The mix of vintage finds and well- hunting for treasures. made crafts make for a diverse mar- I’ve found antique teacups, vintage ket; I’ve bought jewelry fashioned earrings and well-loved cookware that from bullet shells and an antique all had to come home with me while afghan in the same day. And while, combing through the stores that line being a transplant, my city pride those blocks. Another favorite on my doesn’t sit squarely with Cleveland list is Flower Child on Clifton Boule- yet, for everyone else there was an vard, where I can easily spend an hour after work abundance of city-themed merchandise, from walking through the store and admiring the beauti- etched glasses to clothing, which almost had me fully styled vintage displays. What I love most is that wishing I rooted for local teams. (Almost.) the helpful staff wraps your purchases in festive pa- There are enough craft shows sprinkled through- per and bags. (My mom has received a few out the area during the summer to keep the most adorably wrapped sets of salt-and-pepper shakers avid shopper happy. And thanks to technology, it is for her collection from there over the past year!) getting easier to plan for them. While the abundance of great antique stores One of the sites I use to find these events is would have given me endless hours of shopping www.artscraftsshowbusiness.com. I’m also a fan of fun on their own, the list of craft festivals, street the free iPhone app “Yard Sale Treasure Map,” which fairs and events make summer an even more excit- lets you put in a date and a travel radius and then it ing time for a shopaholic like me. plots sales in the area on an interactive map. One of my favorite weekends last year was Lake- When my family heads to Geneva-on-the-Lake woodAlive’s Citywide Street Sale. Browsing neigh- each year for a long weekend, it’s tradition that Sat- borhood shops, meeting people who live in the urday morning the shoppers among us make our same community and scoring some really interest- way through the area armed with a local paper list- ing buys — along with drinking a lot of lemonade ing the garage sales. Last year, we tested out the made by young entrepreneurs — was a pleasant app for the first time and it led us to some new lo- way to spend part of a beautiful weekend. Tamara cations we had never shopped before (I scored a Racin, a Lakewood business owner and Lake- dining room set on this annual pilgrimage, at a sale woodAlive volunteer who has helped with the street in a barn in the middle of nowhere!). sale for five years, said it started in 2010 and last Being new to the area, I know I have probably year more than 30 businesses and 170 residents been missing out on a lot of great places, so participated. Racin said this year’s event is sched- please feel free to point me to some of your fa- uled for June 25-27 and is growing. vorite shops via twitter (@becaroze) or email “Businesses have sidewalk sales, residents have ([email protected]). And for the fellow antique- garage sales, the community comes together as a loving, junk-hoarding and vintage shopping Cleve- whole to make a fun and festive atmosphere. And landers out there, may your summer be filled with it’s not just along Detroit, it is truly a citywide func- good deals and great finds!
What will be you be doing this summer? Snap a photo and send it to us for our Summer in the City photo contest! Starting July 1 and running through Labor Day, MAY 7, readers are invited to send us photos WKSU PRESENTSHOST 2015 THE TAKEAWAY A DAY WITH of their favorite Northeast Ohio JOHN HOCKENBERRY summer sights and activities. Visit: www.wksu.org/hockenberry The Takeaway Live broadcast of or call 330-672-3114 Winners will be selected weekly, at Kent State University
Gold Circle reception at two of whom will receive grand prizes Greystone Hall in downtown Akron at the end of the contest. John Hockenberry on stage at Actors’ Summit Theater in Greystone Hall Watch in print, online and on social media for more details. Kent State University, Kent State and KSU are registered trademarks and may not be used without permission. Kent State University is committed to attaining excellence through the recruitment and retention of a diverse student body and workforce. 15-UR-00125-021 20150427-NEWS--25-NAT-CCI-CL_-- 4/24/2015 1:35 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25 CAMPING JEREMY NOBILE, FINANCE/LEGAL REPORTER Unlike my woods. The site overlooks the 70-foot- vice and electric hookups. The improve- stomping high bluffs, providing a cool breeze off PARKS WITH PUBLIC CAMPING ments underscore an initiative by the grounds in the water in hot summer months and a Baker Road Park, Leroy Township state to draw more casual campers to the rural view that appeals to curious storm watch- Hidden Lake, Leroy Township the outdoors. Ohio Valley, ers, Palagyi said. Girdled Road Reservation, Chardon “Today’s campers want flush toilets and camping Baker Road Park in Leroy Township, River Road Park, Madison Township full-service campsites,” said Lyons. “With around meanwhile, would likely appeal to more Riverview Park, Madison Township our $88.5 million capital improvements Cleveland adventuresome types. The site can be Lake Erie Bluffs, Perry coming to Ohio State Parks, I think we will generally is- reached by either a good hike or a nearly Penitentiary Glen Reservation, Willoughby see an upswing in our camping numbers n’t as easy as grabbing your tent and 7-mile canoe trip, depending on how far Punderson State Park, Newbury because we will be able to provide the pack and trudging into the nearby woods. away you want to set up camp. Portage Lakes State Park, New Franklin types of facilities our customers want But within as much time as it takes to While all are primitive sites, each is Findley State Park, Wellington when they go camping.” get to Cedar Point, you can find a bevy of stocked with some firewood by the parks West Branch State Park, Ravenna If you’re looking for a more casual parks around Northeast Ohio to enjoy and a small toolbox with tinder and a first Geneva State Park, Geneva camping experience, state campsites some overnight stays in the great out- aid kit. Mosquito Lake State Park, Cortland should be on your map. doors. When reserving a site at a large, busy East Harbor State Park, There are six parks with general camp- The Lake Metroparks in Lake County park, you’re likely going to share your Lakeside Marblehead ing open to the public within an hour’s dri- opened five rather scenic and secluded grounds with some neighbors — a peeve Mohican State Park, Loudonville ve of Cleveland: Punderson State Park; Beaver Creek State Park, East Liverpool sites in 2013, expanding that to seven of the outdoorsman seeking isolation. But Portage Lakes State Park; Findley State last year because of their popularity. Lake Metroparks’ sites offer some inher- Park; West Branch State Park; Geneva The Metroparks have logged nearly ent privacy by limiting each to one party. Lake County residents and $20 for non- State Park; and Mosquito Lake State 560 reservations in its first two years of You’ll probably encounter raccoons. You residents. Park. offering camping, said Lake Metroparks may even spot a black bear. But you’re Ohio State Parks, on the other hand, of- Other options slightly farther away (be- executive director Paul Palagyi. And num- less likely to encounter random human fer a variety of both primitive sites (no tween 70 and 100 miles of Cleveland) in- bers are expected to continue an upward passersby in your site or hear traffic on sewer or electricity) and those with more clude East Harbor State Park; Mohican climb this year, especially with a couple roads or trails. amenities. State Park; and Beaver Creek State Park. year-round sites on the table for winter “You’ll be camping here feeling like Doug Lyons, Northeast Ohio district Nightly costs vary from $24 to $45 a campers. you’re in the middle of nowhere, having it manager, said upgrades are on tap for night depending on the park and if your Lake Erie Bluffs in Perry Township of- quiet and peaceful,” Palagyi said. several sites, including such accommoda- site has amenities, like electricity or flush- fers a vista of the lake wrapped by Nightly site rentals there are $10 for tions as new shower houses, Wi-Fi ser- ing toilets.
LEARN HOW TO 4637*7&, 5)3*7& AND (0#&:0/% TUESDAY, JUNE 16, 2015 t".ű1.t53*ű$$03103"5&$0--&(&
+PJO$SBJOT$MFWFMBOE#VTJOFTTGPSBTFSJFTPGDPOWFSTBUJPOTBOEMFBSOJOHTFTTJPOTGPSGBNJMZCVTJOFTTFT %JTDVTTJPOTXJMMDFOUFSPOQSFTTJOHGBNJMZJTTVFTUIBUDBOBòFDUFNQMPZFFT GBNJMJFTBOEUIFCPUUPNMJOF
#SFBLPVU - Pave the Way - Chart the course and manage the transition/succession to step up or step out FAMILY BUSINESS FORUM #SFBLPVU- Communication and Ground Rules – Enhance the family dynamic
PRESENTED BY #SFBLPVU - Generational Leadership – Prepare for the next generation for leadership transition #SFBLPVU - Key Players – Non-family members who can help strengthen and grow your company
Confirmed Speakers & Panelists
t+Fò"IPMB, CEO, The Ahola Corporation t3PC%VSIBN, President & Managing Partner, HKM t-JOEB#MVTP, Advisor and Consultant, Generational Direct Market Communications ."+03410/4034 Leadership Training t4UBDZ'FJOFS, PsyD, Family Business Consultant, BDO t1FUFS#SPTTF Partner, Meyers, Roman, Friedberg & Lewis t,SJTUJO5VMM, President, PRADCO t"OESFX$POOPST, Partner & Sr. Advisor, Fairport t#SZO5VUUMFTUPDL, Co-President, Spencer Products Asset Management t$ISJT8BHOFS, Director of Transaction Advisory, t+JN%JDLJOTPO, Attorney, Cavitch, Familio & Durkin Strategic Wealth Partners
For agenda information and tickets, visit $SBJOT$MFWFMBOEDPN'BNJMZ#J[ or contact Kim Hill at [email protected] or 216-771-5182 4611035&%#: 4QPOTPSTIJQPQQPSUVOJUJFTBWBJMBCMF Contact Nicole Mastrangelo at 216-771-5158 or [email protected] 20150427-NEWS--26-NAT-CCI-CL_-- 4/23/2015 1:13 PM Page 1
26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 OHIO PRIVATE EQUITY AND VENTURE CAPITAL FIRMS LISTED ALPHABETICALLY
Name Minimum Preferred project Capital under Name Minimum Preferred project Capital under Address investment investment management Address investment investment management Phone/Website (thousands) (thousands) (millions) Phone/Website (thousands) (thousands) (millions)
Allos Ventures Linsalata Capital Partners 4(5 #%63 3, 6!3 ((5; !% !%% 3! 5;5 5 ;;; 4 ;;; 1 ;;; < *AA ) 3 3++& 30 8 0 : A ? ' %"#84 !!,:! , AAA :A AAA$9 AAA 66:0A * (4+ 1 (;;(2888, ##'/7 %36. /, '$ .!!A/ 6 !$,!AA7===0'%)4 ' 8 -%8 '0 +(
Athenian Venture Partners Max-Ventures LLC 4 ; , 3 3 3, 6!3 (40 <3 %/ 0;( ;; ( ;;; ;;; 4,5 9A5** %) 83 + ;%8 !: ' < ' ) !!,:! : AAA AAA$,A AAA B *1( + 41; (( 2888, 3 %! %7), '$ .!!A/ 5:*$,9! 7===0( >$< )8;3 40 +(
Austin Capital Partners MCM Capital Partners ( 55 6 #! <7 , 6!3 ( 4; # 7 # % (( ;; ( ;;; ;;; < : :A, # "3%) '< 0 ;%8 96A #=++ !!,:: ! AAA AAA$ AAA ,AA0A *5(1+ 0 55 2888, 6/3!% )!3 #) .3% ./, '$ .:,6/ ,!$, !A7===0( ( -%8 '0 +(
Blue Point Capital Partners Morgenthaler (50 6 #! -6 . 6!3 (;; # 7 # % (( (; ;;; 5; ;;; 1&,; % 8# #%3 )8 3 6AA ;- 3%+3 B< 0 0 ;%8 : AA ,A AAA ;- 8+ A AAA B *5(1+ 4 0;;2888, #6 )'!%3 )!3 #, '$ ' < ' ) !!,,! .:,6/ !,6$5 AA7===0(+3" )8# ' 30 +(
Bridge Investment Fund LP ((;;; . <7 , 6!3 (;; # 7 # % (;1 5 ; 5 ; ( ;;; < Mutual Capital Partners Funds *5(1+ 1 0;2888, .! 6% ## , '$ ,:*A 44 88 + ;%8 5 ' < ' ) !!,! , AAA 9 AAA$,A AAA !,0A .!!A/ 96A$5 6A7===0(;8; ' -%8 '- 38) 340 +(
Canal Holdings LLC North Coast Angel Fund ; '$$'%/ '6# 7 . 6!3 (4; 8!%/ 6. ; 0 5 ;;; 4 ;;; ;;; 4 ,; 5 ) 3 3++& 3%< ;%8 ::A ? ' %"#84 *44;+ 5 (55 2888, % #$ ::, '$ !!,:! AA AA$: AAA ,!0A . AA/ *5 $ !67===0)+38# + 48 )" ' ;) 0 +(
CapitalWorks LLC North Coast Venture Fund 4;;; <6 6.% .!7 6!3 4; 8'' (55 4 ;;; ;;; & ;;; < 5 ) 3 3++& 3%< ;%8 ::A ? ' %"#84 *5(1+ 0 ( 45442888, )!3 #8'."/,% 3 !!,:! : A AA 0A .:,6/ :6:$A!5 Cleveland International Fund (5 ; 6.'% ' , 3 , 5; # 7 # % (( (; ;;; 4; ;;; 5;4, Ohio TechAngels *5(1+ 5 ;1;12888, # 7 # % !%3 .% 3!'% # 6% , '$ ,:5 %)) 3 + +';( ;4 !9:,: 9: 9: :A09 .6,!/ ! 5$95AA7===0+#%+8 # )" '40 +( CoreNetwork 4( , 6$$!3 3, 6!3 5;; '# ' 41; (;; 5 ; ;; < Peppertree Capital Management Inc. * (&+ 1&0 &1&12888, '. % 38'." 6% , '$ 6 48 80 # "3%) ''4 !!A:: : AAA , AAA AA0A .!!A/ : $A9997===0- -- 383 -%8 '0 +( Cyprium Investment Partners LLC 5;; 6 #! -6 . 6!3 5;5; # 7 # % (( (; ;;; ( ;;; 1; ;;; ( ;;;,; PNC Erieview Capital *5(1+ 4 ;;2888, 9).!6$, '$ ,*AA 0 %)8# 80 ,58# ++3 ' < ' ) !!,,! AAA AAA$!A AAA , AAA0A .:,6/ :::$:!*,7===0-) 3% <% =0 +( Desco Capital 00& #3'% ."8 9 6!3 (0 8 <# %9 4; 5 ;;; ;;; ( ;;; < Primus Capital Funds *1( + 2888, / ' )!3 #, '$ *AA ) 3 3++& 3%< ;%8 :AA ' < ' ) !!,:! , AAA B 66506 .!!A/ 6 !$59AA7===0-3%(;4 -%8 '0 +( Draper Triangle Ventures 5( , 3 3 3, 6!3 55;; '#6$ 6/ 45( ;; 5 ;;; 5;;,; *1( + ; 5 2888, . ) .3.! % # , '$ Queen City Angels ! & +3 48 3%< ;%8 6 A %) %)) 8% ! :!: :AA B ! 0A . ,9/ 959$6*5:7===01 0 +( Drive Capital 15& , ! 3, 13 ''. '#6$ 6/ 45( (;; (;; ; ;;; 5 ;,; <2 33) 22 .!7 )!3 #, '$ Reservoir Venture Partners 59 3 (% ' ;%8 ,:A 48 3<%'' !9A , AA , AAA 6A0A .6,!/ !6$5:!,7===03 4 3<+%3<-0 +( Early Stage Partners LP ( ;( , !%3 3, # 7 # % (( ;; ( ;;; 1,; *5(1+ 0 ( 1;;2888, /)#), '$ Resilience Capital Partners : ,A, # "3%) '< 0 ;%8 9 A ' < ' ) !!,:: AAA , AAA 6: 0A .:,6/ :*:$A:AA7===03 4%'% ) -%8 '0 +( East Central Ohio Tech Angel Fund ! / 6!# !% (& <3 %/ 4; (;; ;; 5, *1( + ( ; 5 2888, '3 ,% 3 River Cities Capital Funds ::, 0 +;38# 80 ;%8 :!AA %) %)) 8% ! :A: AAA AAA$, AAA !AA0A . ,9/ 6:,$*5AA7===03 0 +( Edgewater Capital Partners ;; ' "/! ' 6!3 ; % ) % % (4( ( ;;; 1 ;;; (( ,; *5(1+ 5&5 4 4 2888, 8 3 . )!3 #, '$ The Riverside Co. A ; '% 1; 3 :*8# ++3 ' < ' ) !!,,9 , AAA , AAA$9AA AAA ! !AA0A .:,6/ 9!!$,A!A7===03%< 34% +(- )?0 +( Edison Partners ((;;; . <7 , 6!3 (;; # 7 # % (;1 ;;; ;;; (; ;;; &5 ,; *5(1+ 1 4&1 2888, !/'%) .3% ./, '$ RiverVest Venture Partners ,,AAA 3 B< 0 ;%8 ,AA ' < ' ) !!,A6 AA AA$6 AAA :*A0 .:,6/ 6 $9* :7===03%< 3< 480 +( Evolution Capital Partners LLC 4444 ! $'% ' 6!3 ; 8'' (55 4 ;;; 4 ;;; ;;; 0 ,; *5(1+ &4 ; ;52888, 7'#63!'% ), '$ Rockwood Equity Partners LLC 9:A, )8 3-3%4 &=?0 ;%8 95A #=++ !!,:: : AAA 9 AAA$,A AAA B .:,6/ 9!:$,5*A7===03+ &=++ 1;%8?0 +( Fletcher Spaght Ventures ( ; , .' 3, 6!3 (; '#6$ 6/ 45( ;; 5 ;;; 1 ;;; (4;,& *1( + 5& 5412888, 3 ./) 3, '$ Signet Enterprises LLC ,* 0 %"# 80 B&3+) !!9A : AA B 9!60A .99A/ 56:$*,A:7===04%") 8$ )8 3-3%4 40 +( Fort Washington Capital Partners Group 4;4 .' 8 9 6!3 (5;; !% !%% 3! 5;5 < < 0 &;;,; * (4+ 41( 01;;2888, 8 )!3 #, '$ Sunbridge Partners 96 * 3 ) + ;%8 ,AA #=++ !!,:: , AAA B B Gates Group Capital Partners .:,6/ 96A$A, ,7===04 -< 0 +( 1(5; ."# % #7 , 6!3 5;5 9 # ! 3/ (5 ( ;;; ;;; ( ;;; 4;;,; * ;+ 1 &&;;2888, 3 / .'6) ), '$ Triathlon Medical Ventures 9AA $ ;4%) 44 ? ;%8 :AA %) %)) 8% ! :!, : A B B Glengary LLC . ,9/ :!5$6,::7===08(<-0 +( 5 5;; .!% #7 , 6!3 4;; 8'' (55 (;; ;; ( ,; *5(1+ 40 &5;;2888, # % .9## , '$ Zapis Capital Group LLC :6:A: 83+%8 + ;%8 9AA 48' & !!,! A B B Impact Angel Fund .!!A/ 5,$,9AA7===0@ -%4 -%8 '0 +( ((1 # 7 # % <7 , %3'% 0;5 ; 5 ; 5,; *44;+ 454 ( 5& +;3 ) +3( 8%+) %4 4;--'% ? 8# +(- )% 4 ;)' 44 ++8)+8 0 3 %)24 ' < ' ) B ;4%) 44 + 4 )+8 %) - ) )8'? < 3% ? 8# %) +3( 8%+) ) 8# 3 %4 )+ "; 3 )8 8# 4 +3 # 0 %''? 3 Kirtland Capital Partners '%48%)"4 3 +(-' 8 +3 ;3 8 0 = ' +( '' 3 4-+)4 4 8+ +;3 '%484 ) =%'' 45;( %3 .).!/ "89, 6!3 5;; 8'' (55 ( ;;; 5 ;;; (; ;;; ( ;,; %) '; +(%88 %) +3( 8%+) +3 ' 3% 8%+)4 %) +(%)" %44; 40 ) %<% ; ' '%484 ) # *5(1+ &4 ;(;;2888,"!.3# % )!3 #, '$ ++& + %484 3 < %' ' 8+ -;3 # 4 8 ===0 3 %)4 ' < ' ) 0 +(0 20150427-NEWS--27-NAT-CCI-CL_-- 4/24/2015 1:35 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27
HIKING DAN SHINGLER, ENERGY/MANUFACTURING REPORTER Some people love running — to pedal instead of walk. Just will also get you into 200 other ing, photography or some other but I’m not one of them. I’m mid- pick one of the 50 trailheads and gardens around the country, in- activity that involves walking. dle-aged and don’t like to get all get going. cluding the Cleveland Botanical The woods of Northeast Ohio sweaty-red-faced and out of Then there is Cuyahoga Valley Gardens. are full of interesting things to breath. Besides, if you run, you National Park itself — perhaps So, take a hike. And don’t just see, hear and do. It’d be a miss the mushrooms! the greatest gem in Cleveland’s think of it as hiking either. Think shame not to get out there and What I do like to do, along with Emerald Necklace. of it as birdwatching, mushroom enjoy them. my two dogs and significant oth- Located in southern Cuyahoga hunting, geo-caching, leaf peep- Happy trails! er, is hike. Boy, did I pick a great and northern Summit counties, place to live. the park has more than 125 I don’t pretend that I’ve discov- miles of trails. They range from ered all of the great hikes that the easy and wheelchair-accessi- can be had within a short drive ble Brandywine Falls trail in of Downtown Cleveland. I proba- Boston Heights, which is only bly have yet to traverse half of about an eighth of a mile long, to them, truth be told. But I’ve been more challenging trails that will down enough paths in Northeast work out both your lungs and Ohio to know that we have a your calf muscles. wealth of outstanding trails on There are also the Cleveland which to stretch your legs and Metroparks themselves — they clear your mind. all have trails to hike and bike, You can find one challenging but my favorite is probably South enough to leave you sore or one Chagrin Reservation out near that is just a relaxing stroll on Solon and Chagrin Falls. level ground — and, of course, Last, but certainly not least, you can always pick your own there is the Holden Arboretum. speed to determine how much This place is 3,600 acres of cardio you get. Heck, you can mostly pristine forest, with some Experience the Power even run if you want. outstanding gardens mixed in. So, where to go? There is, of There are more than 20 miles of course, the Towpath Trail, which trails, too — not that you need ® winds from Tuscarawas County, to stay on the trails — says of Being Understood through Stark County and the Holden’s public relations manag- Cuyahoga Valley National Park er Vicki McDonald. and almost (and someday entire- There is a $10 charge to get ly) to Lake Erie. It’s got 85 miles in, but for $50 you can join and of trail along the old towpath of go anytime you want — they’ll the Ohio Erie Canal and is devel- even give you the secret gate oped enough that you don’t even code to get in at night for need a mountain bike if you’d like stargazing! That membership
LEVEL OF LEADERSHIP SPOTLIGHT
SELF TEAM ORGANIZATION SOCIETY
“I used a lot of the materials that I put together for this project from a global perspective...[the When you trust the advice you’re getting, you know program] allowed me to take your next move is the right one. some random thoughts, apply market patterns and trends to That’s what you can expect from McGladrey: a team those thoughts, and develop that can help middle-market executives navigate the really good, solid action items that we have been able to make opportunities and challenges they encounter here progress on to improve and build in Ohio, across the country or around the world. a bright future for the business.” In other words, anywhere their businesses take them. Mike Walasinki That’s the power of being understood. General Manager Parker Hannifin Corporation Aircraft Wheel & Brake Division Class of 2014 To learn more about how McGladrey can help your See Mike’s video at organization, call our Cleveland office at216.523.1900 . bit.ly/WeatherheadEMBA Or go to www.mcgladrey.com/growingohio.
Groundbreaking leadership concepts for the business of a better world.
The Executive MBA © 2015 McGladrey LLP. All Rights Reserved. 20150427-NEWS--28-NAT-CCI-CL_-- 4/24/2015 3:52 PM Page 1
28 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 Complimentary In-flight Wi-Fi PORT continued from page 1 and compressors. Siemens decided at the foot of West Third Street — the European side,” he told the it makes financial sense to ship typically used by daily public park- board. “Ships on the way (to Cleve- generators manufactured in France ers and Sunday Cleveland Browns land) are fully booked.” to Mt. Vernon where they will be fit- fans — for pipe storage. AIR CHARTER SERVICE ted with a driver to power the ma- To support the anticipated in- AIRCRAFT MANAGEMENT chines and then shipped to cus- crease in cargo traffic, the port au- Inland empire tomers in the Middle East, where thority has gathered $7.9 million in In its first year in 2014, the port they are used to generate power. funding to purchase two mobile authority was fully subsidizing the Shipping on water is consider- harbor cranes and a new ware- service Spliethoff was operating — able cheaper and often faster than house and related equipment pri- one roundtrip a month — to the by train or truck, especially for large marily to shelter cargo moving on tune of $5 million. But this year, pieces of equipment like these gen- the Cleveland-Europe Express that Spliethoff will cover the cost of sail- erators, which can weigh 300,000 builds up and moves out in stages. ings beyond that one monthly sail- pounds or more. Having a storage facility on the ing and will share some of that rev- “Cleveland provides an excellent docks allows importers to avoid the enue with the port authority. centralized logistics point for in- expense of moving inbound cargo to Peters added that the company is bound oversized and standard car- an offsite warehouse before final hiring a marketing person who will go,” said a Siemens spokesman. shipment to customers, especially be based in Cleveland to drum up “The primary advantage is that important for just-in-time auto parts. Northern Ohio’s Premier Air Charter Service Cleveland-to-Europe business. shipments through Cleveland — The Port Authority won a $4.9 In addition, David Gutheil, the both to and from Siemens Mount million federal Congestion Mitiga- Serving the area with 10 Jets port authority’s vice president for Vernon — reach their final destina- tion and Air Quality grant that will • 24-HOUR JET CARD NOW AVAILABLE • maritime and logistics services, said tion more quickly.” cover most of the cost of the cranes, he expects the volume of project which will replace cumbersome, www.FlySkyQuest.com • 216-362-9904 cargo, large pieces of machinery less energy efficient cranes that and other, specialized high-value Piping up date to the 1970s. They are expect- [email protected] goods, to grow. Part of that predic- Another new customer is a Euro- ed to be available for use before the tion is based on two new cus- pean shipper that is bringing in reg- end of the 2015 shipping season. tomers, for whom an inland port ular, large shipments of European The joint city-county agency also makes financial and logistic sense. steel pipe. The port authority did not won a forgivable $3 million logistics One is Siemens AG, a German disclose the identify of the shipper. and distribution stimulus loan from conglomerate that late last year Gutheil said the pipe will be used the state of Ohio that will pay for purchased the Rolls-Royce plc en- to build a natural gas pipeline that construction of the new warehouse Does your parking lot ergy products business, which in- will begin in the Utica shale coun- and for part of the new cranes. Con- cludes a plant in Mt. Vernon, Ohio, try in eastern Ohio. The port au- struction of the warehouse is expect- look like this? that builds gas turbine generators thority has reclaimed a parking lot ed to be completed later this year. Then it’s time to make a call to: In search of ‘Who to Watch in Technology’ candidates The second “Who to Watch” sec- Stoessel, [email protected], or candidate needs to exhibit the kind of tion of 2015, “Who to Watch in Tech- call 216-771-5155. potential that makes him or her 800.PAVE.NOW nology,” is scheduled for publication Send your suggestions no later someone to watch in the technology June 22. It will highlight up-and-com- than noon on Monday, May 11. sector. ers and innovators in technology. If Please include the person’s name, Keep an eye out later this year for you think you know who will be position and a paragraph explaining more of these sections: Who to among those leading the Northeast why he or she stands out. Watch in Manufacturing, Sept. 28; Ohio tech sector of the future, drop There are no hard and fast require- and Who to Watch in Marketing and an email to sections editor Amy Ann ments for this section, other than the Creativity, Dec. 7.
Quality and Excellence in Asphalt Paving Since 1939
• Asphalt Paving • Pavement Milling 2%'5,!4)/. /6%2 ()'(%2 %$5#!4)/. • Pavement Marking • Hot Mix Production Facility • Concrete and Excavating Services HOW MUCH IS ENOUGH? PRESENTED BY
www.RonyakPaving.com IDEAS AT DAWN
*OIN #RAINS #LEVELAND "USINESS AND OUR PARTNERS AT THE .ORTHEAST /HIO #OUNCIL ON (IGHER %DUCATION AS WE EXPLORE HOW RED TAPE IS SUFFOCATING OUR Are you ready INSTITUTIONS OF HIGHER LEARNING AND WHAT THAT MEANS FOR TOMORROWS WORKFORCE for April showers and +%9./4% .% /()/ 5.)6%23)49 May flowers? ,%!$%2 0!.%,
CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS!
Feat. Providing Commercial & Multi-Family Landscaping Service Since 1995 4HOMAS 6 #HEMA 2ONALD - "ERKMAN President Emeritus, President, Hiram College Cleveland State University
4UESDAY -AY s AM s4RI # #ORPORATE #OLLEGE %AST Landscape Maintenance For tickets, visit #RAINS#LEVELANDCOM"REAKFAST or contact Kim Hill at 216-771-5182 or [email protected] Lawn Fertilization • Mowing • Trimming & Edging Innovative Design • Landscape Construction • Mulching
Tucker Landscaping Inc. • 986 Broadway Avenue • Bedford, Ohio • 44146 (440) 786-9840 • Tuckerlandscaping.net 20150427-NEWS--29-NAT-CCI-CL_-- 4/24/2015 3:53 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 29
FEES GET DAILY NEWS ALERTS FROM CRAIN’S continued from page 5 REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: co and other cosmopolitan cities. THE MORNING ROUNDUP: MANUFACTURING REPORT: Reserve, a six-month-old startup The day’s business news from A guide to Northeast Ohio’s available in five major cities, Ohio’s daily papers manufacturing sector. charges diners $5 for the “personal Published every other concierge service” that allows for BREAKING NEWS ALERTS Wednesday. more interaction during the reser- DAILY HEADLINES: vation process. Crain’s-produced news and SMALL BUSINESS REPORT: That operation plans to expand its blog items from the day A weekly guide to small city coverage, but did not return a re- business news. REAL ESTATE REPORT: A weekly quest from Crain’s Cleveland Busi- Published Thursday. guide to real estate news. Published ness about whether its foray into new Monday. SHALE AND ENERGY REPORT: markets includes Cleveland. A weekly guide to the energy Downtown Cleveland restaurants HEALTH CARE REPORT: A weekly guide of changes in the industry. like Pura Vida no doubt will be keep- Published Friday. ing their eye on emerging reserva- health care industry. Published tion technologies that can help drive Tuesday. mobile-savvy out-of-town guests to their establishment. Similarly, Hospitality Restau- a.m. while they’re on their way to SIGN UP NOW AT: CRAINSCLEVELAND.COM/REGISTER For now, chef-owner Brandt rants, which operates downtown work, but no one is at restaurant at Evans will continue to process on- Cleveland’s Blue Point Grille, Del- that time to take the call. More than TWITTER: @CrainsCleveland line reservations through monico’s Steakhouse in Indepen- 50% of our reservations are booked FACEBOOK: Facebook.com/CrainsCleveland OpenTable, an expense of which he dence and five other area concepts, and confirmed when we are not feels is worth the value of driving says the service’s primary return on open.” LINKEDIN: linkedin.com/company/crain’s-cleveland-business tourists and business travelers to his investment is being able to accept Only about 20% of its e-reserva- INSTAGRAM: instagram.com/crainscleveland convenient Public Square location. reservations 24 hours a day. tions are made through the Open He estimates that between 25% and “The benefit is tremendous,” said Table website. The remaining Open 30% of his OpenTable reservations Chris Oppewall, director of opera- Table reservations are secured YOU CAN WATCH US, TOO are out-of-town guests. tions, who notes that OpenTable through Blue Point Grille’s site. “It’s also a great tool to help us bookings represent about one-third “Truthfully, when our bill (from Look for Crain’s Weekly Report webcast, which will hit your inboxes Friday recognize our regulars and rally per- of overall reservations. “Someone Open Table) arrives, the bigger it is, afternoons. To sign up, go to: crainscleveland.com/register. sonalized guest experience,” he says. may want to make a reservation at 8 the better for us,” Oppewall said.
Cleveland Commercial Group COMMERCIAL REAL ESTATE BROKERAGE ARTHUR LAWRENCE The Solon Select is a distinguished group We are pleased to have of more than 800 businesses that have represented the Buyer in the chosen to locate in SOLD!!! purchase of this 30,000 s.f. When It Gets the City of Solon. office building located at 6505 Rockside Road. Down to Business… 30559 Pinetree Rd., Suite 218 Cleveland, Ohio 44124 440.449.2050 Solon Gets It! www.ClevelandCommercialGroup.com The City of Solon welcomes these new businesses: AMG Marketing Resources Retail/Office Buildings Bradley Stone Industries Land/Sites - Shopping Centers Burgers 2 Beer Sales • Property Acquisition • Leasing Chicago Realty Group Consolidated Electrical Distributors Contact Art for your commercial real estate needs! Diamond Nails & Spa, Inc. DynaInfotech e-Smart Marketing Solutions Janda Insurance Agency Misco Refractometer 2015 LEADERSHIP Nature’s Way Bird Products DEEP DIVE “Leadership Deep Dive made an ProNine Sports enormous impact on me, giving VitaMix Factory Store me a deeper understanding of how to truly motivate and inspire And thanks these real estate professionals for others. I apply these principles and bringing new business to Solon: techniques in my work every day, Jeffrey Calig – NAI Daus whether I’m in a room with five Simon Caplan – CRESCO Real Estate managers or leading a conference David Hexter – NAI Daus Eliot Kijewski – CRESCO Real Estate call with 500 store managers Rob Namy – Weston, Inc. across the United States.”
MARY KAY O’CONNOR-WENTE
Senior Vice President of Stores and Operations at Charlotte Russe Solon’s Got It! Prime industrial, office and retail sites at www.solonohio.org Visit weatherhead.case.edu/deepdive for more registration, pricing and discount information. City of Solon • 34200 Bainbridge Road • Solon, Ohio 44139 • 440.337.1313 Peggy Weil Dorfman, Economic Development Manager • [email protected] 20150427-NEWS--30-NAT-CCI-CL_-- 4/24/2015 3:59 PM Page 1
30 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 27 - MAY 3, 2015 ATHERSYS continued from page 1 ments back in February in a re- derstand the data? Jason Kolbert search report about Athersys. The doesn’t think so. investment banking firm had been Kolbert, a biotechnology stock telling the company’s sales force analyst for Maxim Group in New that the clinical trial had a 75% York City, still is telling investors to chance of missing its target, ac- buy Athersys stock. cording to Ted Tenthoff, a senior Sure, there were only 27 patients research analyst at Piper Jaffray. who received MultiStem early. Still, the firm recommended the Alone, that wouldn’t make for a stock then, and it still recommends large clinical trial. But they recov- it now. However, Piper Jaffray did ered well, compared to the placebo lower its 12-month price target for group: The subgroup generally per- the stock from $4 to $2. Given that formed 15% to 20% better on three the clinical trial missed its main standard stroke tests used during goals, Athersys will probably have the trial. to conduct a follow-up Phase II The most impressive statistic: study, which means it will probably 18.5% of those patients achieved take longer for the stroke therapy to particularly high scores on all three get to market — maybe an extra tests — up from 2% in the placebo two years, according to Piper Jaf- group. fray. Kolbert doesn’t think that’s luck. The company might be able to He thinks that Athersys could run a relatively small follow-up run another trial that would repli- study in Japan, Tenthoff noted. 24 hours after the stroke. Why not ing that many Phase II stroke trials data. (Van Bokkelen noted that cate the results they achieved with There, regulators have eased re- treat them as soon as possible? Do- have produced positive data that those patients were removed from the 27-patient subgroup, all of strictions on stem cell therapies ing so during a clinical trial could couldn’t be replicated in larger the MultiStem subgroup and the whom received MultiStem between that have proven to be safe, and make it harder to screen out people Phase III trials. That study was pub- placebo group because there was a 24 and 36 hours after suffering an MultiStem hasn’t shown any safety who immediately recover from a lished by Experimental & Transla- cluster of those patients in the post- ischemic stroke — a common form issues. Plus, Athersys already has stroke or crash dramatically, Van tional Stroke Medicine in February 36 hour placebo group — and they of stroke caused by a blood clot. an ally in Japan who could help Bokkelen said. 2014. performed exceptionally well. It makes sense that patients who fund such a study: It struck a licens- Some doctors have told him that “The bottom line is that the Without them, the post-36 hour received MultiStem later wouldn’t ing agreement with Chugai Phar- they see potential in MultiStem, (Athersys stroke) trial did not placebo group looked almost iden- do as well, according to Kolbert and maceutical Co. earlier this year. given the new data and its overall achieve any of its primary or com- tical to the pre-36 hour placebo others who spoke to Crain’s. Stroke Athersys has had “very construc- safety profile. A few have even said ponent secondary endpoints,” group.) patients are harder to treat as time tive conversations” with Chugai they’d want to be treated with it, he Goldstein wrote. Overall, however, Hooper said goes by, they said. Consider tPA, since the data was released, ac- noted. Dr. David Hooper was more pos- the data look “somewhat promis- the only drug that’s proven to help cording to Athersys CEO Gil Van itive. Hooper, the senior scientific ing.” ischemic stroke patients: It only Bokkelen. The Cleveland company adviser at Clinical Research Man- Dr. Stanley Turhim had a similar works if patients get it within three also could conduct a larger Japan- Data driven agement, a Hinckley-based compa- take. The director of the Stroke to five hours after the stroke. ese study or an international study, Dr. Larry Goldstein probably ny that helps researchers conduct Center at Mount Sinai Hospital in Thus, Kolbert thinks Athersys set he said. First, however, Athersys wasn’t one of those doctors. The di- clinical trials, wanted to see more New York City noted that the sam- itself up for failure when it set up will need to get feedback from reg- rector of the Duke Stroke Center at data than what Athersys published. ple size was small and could be the trial, which treated patients 24 ulators, he noted. Duke University Medical Center And he noted that the company’s producing “a chance finding.” to 48 hours after they’ve had a Any new study would focus on took a look at the publicly available follow-up analysis excluded pa- But the results seem “plausible,” stroke. patients treated within the first 36 data and sent Crain’s an email re- tients who had been treated with and Athersys might be able to repli- “That made the goals of the trial hours after the stroke — which sponse. both tPA and a clot-removal cate them in a follow-up study, he an uphill battle,” he said. would still dramatically expand the The subgroup data is “interest- process called mechanical reperfu- said while speaking to investors window for treating patients, Van ing,” but a lot of Phase II stroke tri- sion. during a Piper Jaffray conference Bokkelen said. He wouldn’t say Ready for feedback als produce interesting data, Gold- That move “seems reasonable,” call last week. whether the company would con- stein wrote. but Hooper said such adjustments “It would be a shame not to ex- Piper Jaffray made similar com- sider treating patients earlier than He then pointed to a study stat- leave room for bias to creep into plore that further,” he said. REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card
COMMERCIAL SPACE FOR SALE INDUSTRIAL SPACE
Western Lake County FOR SALE Private Retreat PearlWind C. W. JENNINGS INDUSTRIAL EXCHANGE Chase Bank There has never been a better time Approximately 24,000 ft light Ground Lease Near I-271. Lakehouse 40 A for solar. Your one-stop source for Global Expansion Consulting industrial partially subdivided. 5 Years Remaining – Lorain, OH fenced. 2 barns, gas well. solar development and LED lighting. Construction • Acquisitions Ideal for growing business Price: $667,000 Bass Lake 216-591-9463 Exporting • Financing owner-occupant. Excess space Myrl Roberts – [email protected] now rented until additional Brad Teitelbaum 312-275-3116 330-468-5238 Jon Kaplan – [email protected] (855) 707-1944 business space needed. [email protected] Approximately 15 years old. Excellent condition! E-MAIL US YOUR AD... 440-742-0359 [email protected] BUSINESS SERVICE OWNERS! FLYNNENVIRONMENTAL Submit your business card to promote your service. UST REMOVALS • REMEDIATION DUE DILIGENCE INVESTIGATIONS To find out more, contact Denise Donaldson at List your auction, commercial, (800) 690-9409 216.522.1383 industrial or Retail Space Here! DON’T Crain’s Executive Recruiter Crain’s Cleveland Business’ classifieds will help you fill that space. FORGET: Salesman Part-time To place your Contact Denise Donaldson at Crain’s Cleveland Business on-line @ Need a person to call Crain’s Cleveland 216.522-1383 CrainsCleveland.com businesses from their home. Business Ideally 15 to 25 hours a week. Executive For all the latest business Paid hourly. Recruiter ad Email you ad to [email protected] news...online 440-461-2202 Call 216-522-1383 20150427-NEWS--31-NAT-CCI-CL_-- 4/24/2015 3:48 PM Page 1
APRIL 27 - MAY 3, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 31 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Two-year wait on drinking Everything comes up APRIL 20 - 26 bill is pause that refreshes Roses at retail site The big story: A push for change at Associ- Shaker Heights may be a key beneficiary The big hole left in Cleveland’s Slavic Vil- ated Estates Realty Corp. led to the biggest of changes to a bill that will allow cities to lage by the closing of its Silverman’s store change of all — a sale of the Richmond create districts where open containers of al- earlier this year has just been filled by a Ros- Heights-based real estate investment trust. As- coholic beverages will be allowed. In other es Express, a junior department store con- sociated Estates on April 22 said its board of di- words, people can carry a beer from a bar or cept of Henderson, N.C.-based Variety rectors approved a deal to be acquired by carryout and mingle with other revelers in a Wholesalers Inc. that is new to Northeast Toronto-based Brookfield Asset Management park or other public space. Ohio. for about $2.5 billion, including the assump- The bill that passed the Ohio House of Roses Express stores are 25,000 square tion of debt. Brookfield will acquire all Associ- Representatives would have allowed only feet in size, while Variety’s other four Roses ated Estates shares outstanding for $28.75 per cities with a population of 35,000 or more to discount stores in the region are more than STAN BULLARD twice its size, said Wilson Sawyer, chief op- share. Last year, Stamford, Conn.-based Land have these entertainment districts. The Residences at 1717 building. and Buildings launched a campaign to change But the Ohio Senate would extend re- erating officer of the privately owned chain. freshment areas to communities of 25,000 to Merchandise is the same, he said, although the composition of the Associated Estates old East Ohio Gas building — is scheduled 35,000 two years after the legislation is most of its departments, except for house- board. to move in this week. signed into law. wares, are smaller. Sawyer said his compa- Moreover, the 223-suite project named Shaker Heights Mayor Earl Leiken had ny decided to open in Slavic Village because Clash of the titans: The U.S. Department after its East Ninth Street address has a 70- testified in favor of the bill in the House, of the area’s population density and a void of Justice sued Quicken Loans Inc., alleging person waiting list for when suites become hoping for the lower population threshold. of similar retailers. Variety sized up the Sil- the Detroit-based mortgage lender founded by available, according to Doug Price, CEO of He told Crain’s Cleveland Business that he verman’s store for one of its brands before Cleveland Cavaliers owner Dan Gilbert im- building owner K&D Group. The $60 million would like to be able to make the under-re- Silverman’s shut, he said. properly originated and underwrote federally project opened in July 2014. construction Van Aken District into what “We really liked their stores. They had a insured mortgage loans. The government al- The tight central city apartment market — the legislation formally calls an “Outdoor great concept in neighborhood retailing,” leges that Quicken originated hundreds of Fed- 98% occupied, according to Downtown Sawyer said. Refreshment Area.” eral Housing Administration-insured loans Cleveland Alliance — is starting to change No other Roses Express stores are With several years of roadwork and con- between September 2007 and December 2011 the way some prospective tenants seek planned for Northeast Ohio, but the compa- struction ahead, the two-year wait isn’t a that were not eligible for the federal program. suites, Price said. ny continues to look at opportunities here. problem for Leiken and his city of 27,935. The lawsuit came a week after Quicken sued “We’re seeing people looking for apart- Variety’s first Roses store here was opened — Jay Miller the DOJ and the U.S. Department of Housing ments nine months to a year ahead,” Price in North Randall three years ago; it now has and Urban Development. Quicken said it was said. four in the region. The company does not left no choice after “the DOJ demanded Quick- “They understand the situation.” build new stores he said; it only occupies ex- en Loans make public admissions that were Start looking early for Among K&D’s four downtown apartment isting retail space. blatantly false, as well as pay an inexplicable that apartment downtown buildings, Price said, it has 25 units left to Although Variety will celebrate the open- penalty or face legal action.” rent over the next three months. ing of the Roses Express at 6601 Harvard The rapid pace that new apartment devel- However, other developers have more Ave. with fanfare at 9 a.m. Thursday, April It’s getting reel: Avon landed a big fish in opments in downtown Cleveland fill is suites on the way, such as the Flats At East 30, the shop has been open since April 16. So far, he said, the Slavic Village store’s sales the sporting goods retail world — Cabela’s Inc. showing no sign of slowing. Bank Apartments that Iris and Scott Wol- have pleased the firm and exceeded its ex- The company, which bills itself as “the world’s The last tenant at Residences at 1717 — stein and Fairmount Properties will open in pectations. — Stan Bullard foremost outfitter of hunting, fishing and out- the 2014 conversion to apartments of the July. — Stan Bullard door gear,” said it expects construction on the 81,000-square-foot Avon store to begin later this year, and it anticipates a fall 2016 opening. It will be the first Cabela’s in Northeast Ohio. MILESTONE BEST OF THE BLOGS The store will be off Exit 153 of Interstate 90 near Chester Road. Jacobs Real Estate Services Excerpts from recent blog entries ing company TCP. LLC is the developer. Cabela’s expects to em- on CrainsCleveland.com. A February lawsuit by the company’s gen- ploy about 225 full-time, part-time and season- eral counsel led to CEO Ellis Yan announc- al employees at the store. It will be the fourth Hail competition ing April 16 that he would leave that post af- Cabela’s store in Ohio. ter his contract expires on June 30. Ohio is just about the best state in the Now, TheStreet.com crunched some country if you’re looking for cheap auto in- numbers on the five worst IPO performers Bet on it: ThistleDown Racino began con- surance. of the last 12 months, and TCP was there, at struction on a $70 million upgrade. Included in Insure.com reported that it costs, on aver- No. 5. The $79 million IPO last June was of- those new amenities are a 1,000-space parking COMPANY: Kastner Westman & age, $843 per year to insure a car in Ohio. fered at $11 per share. The first day close garage; a high-limit gaming and VIP lounge; Wilkins LLC, Fairlawn That’s the nation’s second-lowest rate, best- was $10.43, and the close on April 15 was the addition of 250 Video Lottery Terminals to ed only by Maine’s $805 average. (The site $3.04 — a 72.4% decline since the company the existing 1,283; a 150-seat restaurant; and a OCCASION: Its 15th anniversary compiled rates from six large insurance car- went public. new lobby that will connect the gaming floor riers in 10 ZIP codes in every state. The rates with the parking garage. Construction is ex- The boutique labor and employment law were for the same full-coverage policy for the same driver — a 40-year-old man with a Growth industry pected to be completed by April 2016. Thistle- firm, which represents management exclu- clean driving record and good credit.) One more reason to be in favor of mari- Down will remain open 24 hours a day sively, celebrated its 15-year milestone by By contrast, in neighboring Michigan, the juana legalization: It fosters innovation in throughout construction. unveiling a new logo and moving into the average cost for auto insurance is more the lighting industry, including at a Cleve- renovated first floor of the former A. Schul- than three times higher, $2,662, according land company called iGROW. In transition: Economic development orga- man corporate headquarters in Fairlawn. to Insure.com. “With new greenhouses and growing nization Team Northeast Ohio has a new The new office, 3550 West Market Street, The reason for the Buckeye State’s great spaces come purchases of new grow-lights, chairman — Jim Clay, chairman and CEO of is about 13,500 square feet and “significant- rates? an essential tool for a robust cannabis crop, Westfield Group, an insurance and banking ly increases” the firm’s physical footprint, “Fierce competition leads to affordable and startup lighting companies are re- group of businesses headquartered in Medina according to Kastner Westman & Wilkins. rates in Ohio,” according to Insure.com. sponding to the need with innovative prod- County. Clay succeeds Ward J. “Tim” Timken The firm began operations in 2000 with The Ohio Insurance Institute says 671 auto ucts,” Forbes.com said. New companies de- Jr., the chairman, president and CEO of six founding partners. It has since grown to insurance carriers do business in the state veloping alternative technologies “are TimkenSteel Corp., and David T. Abbott, exec- 12 attorneys, nine office staff and Of Coun- — more than in any other state except Illi- gunning for lower heat output, lower cost utive director of The George Gund Founda- sel affiliations with national firm FordHarri- nois. and best light spectrum emission. tion, who served as interim co-chairs during son LLP and Douglas B. Brown LLC. Kastner Jeannine Giesler, president of the Profes- Ari Seaman, an owner of iGROW, an agri- the organization’s transition to begin to imple- Westman & Wilkins said it represents orga- sional Independent Agents Association of cultural lighting manufacturer company ment a new regional economic development nizations “of all types and sizes around the Ohio, told the website, “It boils down to the that began operations in 2009, told strategy. state and beyond, from Fortune 500 compa- climate for insurance. Ohio continues to be Forbes.com, “The right light can make a cannabis crop mature ten days faster, and nies to smaller, regional businesses, institu- a strong advocate for its citizens and has a strong insurance department that stays on that means more money for growers who Get it started: The Flashstarts business ac- tions and public sector entities.” the forefront as times are changing. It’s pos- can get that investment sold faster.” celerator aims to create a $15 million venture Shareholder James P. Wilkins said in a sible to get from independent agents rates Forbes.com noted that iGROW agricul- statement that the new office “will accom- fund with help from one of LaunchHouse’s for- that are very competitive.” tural light “delivers the full spectrum of col- modate our projected, continued growth, as mer leaders. The Cleveland-based accelerator Insure.com said Ohio “has consistently ors of the sun, fine-tuned to the needs of has hired Shannon Lyons to lead the effort. She well as give us additional space to serve our ranked as one of the least expensive states cannabis plants.” previously was in charge of business develop- clients in new and better ways.” for car insurance since Insure.com began iGROW posted sales of $500,000 in 2012. ment at LaunchHouse and ran its business ac- Among the features of the new space is a conducting its annual state-by-state premi- This year, the company expects to sell $20 celerator program. The venture fund is de- human resources training center confer- um comparison. million worth of lights. Its customer base signed to complement Flashstarts’ StartMart ence room that the firm will use to host also has changed substantially. plan. The accelerator said it aims to convert monthly continuing education credit semi- “Eighty percent of our first-year sales one or more buildings in Cleveland into a nars for HR professionals. Nowhere to go but up were to non-marijuana growers,” Seaman “mixed-use Mecca for startups of all kinds.” For information, visit: There have been a few not-so-great de- told Forbes.com. Now more than half of all www.kwwlaborlaw.com. velopments of late for Aurora-based light- sales go to marijuana growers. 20150427-NEWS--32-NAT-CCI-CL_-- 4/23/2015 1:16 PM Page 1
When you buy from Sprinter of North Olmsted, you’re in good company.
Lake Erie Graphics offers their customers the right mix of skilled project management, experienced people and cutting-edge technology. And when they wanted a vehicle that could make their organization really shine, they chose Sprinter of North Olmsted.
“The main reasons that we chose the Mercedes-Benz Sprinter were the diesel engine, which offers great gas mileage, and the ability to carry very heavy loads. The van is a real workhorse. We have been extremely pleased with the lack of downtime and great service we have received from Sprinter of North Olmsted. We would definitely make the same decision again.”
– Jim Dietz, President, Lake Erie Graphics, Brook Park, Ohio
Starting at 2014 2500 Cargo Van 144”, $35,920** Low Roof, 4-Cylinder **Plus optional equipment. Not all options available in the U.S.
Sprinter of North Olmsted 28595 Lorain Road . 877-598-0726 . www.northolmstedsprinter.com of North Olmsted
new 2015 pure coupe
0% financing additional up to 60 months $1,000 off if you’re currently lease $ driving a Mercedes-Benz, 99 served in the Armed for only a month* Forces or lease/purchase in a company name.† Per month lease for 36 months with $1,393 due at signing
smart center of North Olmsted 28450 Lorain Rd, North Olmsted 877-250-7754 www.smartcenterofnortholmsted.com
* Offer expires 4/30/15. 2015 smart pure coupe $99/mo for 36 mos with $1,393 due at signing. Based off an MSRP of $14,330. U.S. Environmental Protection Agency; www.fueleconomy.org (1)Starting at price is based on 2015 smart fortwo pure coupe with air conditioning. 10,000 miles per year, 25¢ per mile thereafter. Prices and payments exclude tax, title, registration and documentary service charge. Pricing and offers may change at any time without notification and will vary in certain states and Puerto Rico. Lessee may be liable for wear and tear. Visit your smart center dealer for complete details, qualifications and restrictions. †Available for qualified customers only. 0% APR financing for up to 60 months at $99 per month, per $1,000 financed. Excludes leases and balloon contracts. No security deposit required. Available only at participating authorized smart dealers through Mercedes-Benz Financial Services. Must take delivery of vehicle by 4/30/15. Specific vehicles are subject to availability and may have to be ordered. Subject to credit approval by lender. Rate applies only to smart model vehicles listed. Not everyone will qualify. See your authorized smart dealer for complete details on this and other finance offers. See “smart Brand Communication Standards” for further details. © 2015 smart USA.