We're Feeling Hospitable

20141027-NEWS--1-NAT-CCI-CL_-- 10/24/2014 3:52 PM Page 1

$2.00/OCTOBER 27 - NOVEMBER 2, 2014

Cavs’ local TV home is also a hot ticket Fox Sports Ohio is heading into 2014-15 season having already sold all but 5% of its ad inventory

By KEVIN KLEPS [email protected]

Fox Sports Ohio isn’t joining the Cleveland Cava- liers in revamping its roster, but the NBA team’s local TV home since 1989 is rapidly running out of advertising inventory. Fox Sports Ohio is on pace to sell 95% of its ad inventory by the start of its first regular-season broadcast — the Cavs’ second game of the season, Friday, Oct. 31, at the Chicago Bulls. Francois McGillicuddy, the general manager and senior vice president of the Broadview Heights-based FOR MORE arm of Fox’s vast regional sports umbrella, told Crain’s RNC COVERAGE, the network is “way ahead” of its pace from previous SEE THE SPECIAL seasons. SECTION INSIDE “The demand for Cavs inventory started earlier than we’ve seen in the past,” McGillicuddy said. THIS ISSUE “There is a strong interest from a variety of categories — the auto industry, fast food, retail — and it’s a great Pages 21-25 combination of local and national (companies). We’ve never been at this sellout level this early.” The sellout theme is a common one for any product associated with the Cavs, who reached their self- imposed cap of a little more than 12,000 season tickets fewer than eight hours after LeBron James announced his return on July 11. WE’RE FEELING HOSPITABLE The Cavs, Las Vegas’ prohibitive choice to win the franchise’s first championship, open the season Thursday, Oct. 30, against the New York Knicks in a Local businesses are gearing up for potential windfall Opportunities knock for ... game that will be exclusively broadcast by TNT. The next night, Fox Sports Ohio gets into the act. By Caterers for food By JAY MILLER Republican National Committee and the then, almost every ad, including those associated with Event producers and media companies [email protected] road show it will bring with it when the for audiovisual equipment, lighting and pregame and postgame shows, and ancillary broad- convention comes to Cleveland in the staging casts such as “Cavaliers in the Paint,” will have been Dale Fellows is chairman of the Lake summer of 2016. Exhibit builders for convention booths sold. County Republican Party. He has been a “We’re hoping to help, whatever their and stages, event decor McGillicuddy said because James’ comeback is “a delegate to several recent printing needs, whether it is the RNC or Employment services for temporary help story that transcends sports,” the anticipation for the presidential nominating con- companies coming or the different state Entertainers and DJs to liven up events season has carried over to companies that want to be ventions. He’s been among delegations,” he said. “It really is a once- Florists for dressing events with plants associated with Cavs programming. the delegates on the floor wav- in-a-lifetime-type thing.” and floral displays and for gift baskets “That’s part of what’s driving this,” he said. “It ap- ing signs for their favorite can- From his experience at previous con- Lawyers for contract review peals to businesses of all kinds. Everyone can under- didates, seen the signs in the ventions, he’s figuring out the opportuni- Limousine services for transportation stand the pull of coming home.” stands and in the hands of the ties for his business, which is on the east- Meeting planners for one-stop service opposition outside the con- ern edge of downtown on Commerce Photographers to document events vention hall and at the hotels. Avenue. Printers for signs, placards, posters Ratings juggernaut “The placards for sure, the handheld It turns out he could have written those Rental companies for tents, tables, chairs The Cavaliers’ three preseason games at Quicken trips off as business intelligence gather- placards, we could easily print them on a and bunting Loans Arena all drew more than 19,000 fans, as did ing. quick turnaround and get them over to Telecommunications services for their sellout contest against the Chicago Bulls in You see, Fellows is the owner of Cleve- the convention center,” he said. “We feel temporary phone and networks services Columbus on Oct. 20. Those numbers are 3,000 to land’s Morgan Litho — “Big or small, we we’re perfectly suited logistics-wise and Valet parking services for events 4,000 ahead of the team’s attendance norms for the print it all,” the tagline goes — and he’s knowledge-wise.” Venues for special events eager to put his business to work for the See RNC, page 26 See TV, page 29 43

7 ALSO INSIDE: REAL ESTATE

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Bober Markey accounting firm makes a significant Cleveland addition By JEREMY NOBILE faster than organic growth alone can and client growth,” Fedorovich said. a totally integrated fashion.” Libman Goldstine because of the in- [email protected] provide, Fedorovich said. The con- “To do that, we need to offer a range As the operations of Libman Gold- stant expansion of its potential cus- verged firm will comprise more than of service and critical mass that will stine — founded in 1956 — join tomer reach. Cleveland accounting firm Lib- 100 employees and 47 CPAs. service their needs appropriately to- Bober Markey, an unspecified period “This will give (Libman Goldstine), man, Goldstine, Kopperman & Wolf “Cleveland is going through an day as well as five and 10 years in the of co-branding will continue during overnight, a lot of the resources to will merge with Bober, Markey, Fe- economic recovery and a renais- future.” the transition, said Karyn Sullivan, di- provide expanded services to existing dorovich on Nov. 1 in a deal that will sance in very many ways,” said Kei- Libman said it’s all about adding rector of business development at clients,” Koltin said. “It will also pro- help the latter expand its base in th Libman, a partner at Libman “more breadth and depth” for his Bober Markey. Libman, Goldstine’s vide them opportunities to target po- Northeast Ohio and leverage new Goldstine. “This combination for firm’s clients. He pointed out Bober downtown Cleveland office on Supe- tential clients that they may not have client and service opportunities for both Bober Markey and Libman Markey’s ties to PKF International, a rior Avenue will continue to exist and had an opportunity to reach with the each. Financial terms of the deal Goldstine will create a platform to global network of accountancy firms. joins Bober Markey’s locations in size that they were at.” were not disclosed. be part of that very exciting growth “We will be able to present to our Akron and Cleveland. Everything will The activity also underscores an Richard Fedorovich, managing going on in Greater Cleveland.” office and clients a degree of inter- eventually be branded exclusively “absolute merger frenzy” happening partner and CEO at Bober Markey, “There are absolutely no plans to national representation to assist under the Bober Markey name. among the top 500 accounting firms, said the merger aligns with the shrink anything,” Fedorovich em- them with the types of transactions Allan Koltin, CEO of Koltin Con- Koltin said. He said most of those are firm’s ongoing plans for expansion phasized. “Our plans are to grow our that are more and more important sulting Group Inc. in Chicago who rooted in succession planning as the into Greater Cleveland. Bober footprint (in Ohio) and our base.” — clients doing foreign acquisitions, advises CPA firms on mergers and aging leaders of many firms eye re- Markey was founded in Akron in The merger will expand the scope clients who both sell and source acquisitions, said he believes the tirement, but the Libman Goldstine 1959 and opened its Cleveland office of services for each company’s products from abroad, clients with merger is a “perfect” move for Bober merger is among about one-third of in November 2010. The merger is an clients as the two join forces. complicated tax needs,” he said. Markey because of its desire for those in the CPA realm driven in- effort to spur expansion efforts “We want to support our clients “We can now bring them together in growth and mutually beneficial for stead by strategic planning.

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

FOR SALE OR LEASE El Barrio’s workforce 5,&+021'52$' %(')25'+(,*+762+,2 program is doing the job With help of Reminger, prospective employees are prepared for opportunity By JEREMY NOBILE [email protected]

Lissette Reyes immigrated to 6)LQGXVWULDOEXLOGLQJ Cleveland early this year from Puer- 6)DYDLODEOHIRUOHDVH Visit to Rico, bringing with her gumption, an MBA and more than 20 years of TerryCoyne.com 6)RIÀFHDUHD experience as a legal secretary. Educated, motivated and fluent GULYHLQGRRUVGRFNV Or Call Terry at ·FOHDU in English, she planned to find work 216.453.3001 right away and contribute to the &RUQHUORW5LFKPRQGDQG)DUJR5RDGV household where she was now living with her two sons. But months passed. Interviews 1350 Euclid Ave, Suite 300 Cleveland, Ohio 44115 came and went. Despite a stellar resume, work simply didn’t come. Frustrations mounted as she sought jobs in customer service, but she re- CONTRIBUTED PHOTO From left, Cuyahoga County Common Pleas Court judge Eileen Gallagher, peatedly was told she was overqual- Reminger partner Michelle Sheehan and attorney Ronnie Garotoli conduct a ified. All she wanted was to work. mock interview with Ahlem M. Zaaeed on Sept. 15. “I couldn’t find anything,” Reyes said. “It was hard.” said. “And I think we all recognize A model to follow Reyes eventually enrolled in The we have been given certain advan- Attn: Manufacturers & Warehouses Reyes already had plenty of expe- Centers for Family and Children El tages and opportunities, and we rience, but what she learned was Barrio Workforce Development owe it to the community that we Center, which offers various levels of live and work in to help do what we how to better handle an American LAST CHANCE training and assistance to individu- can to help make them better.” interview. She also took away to capture rebate for upgrading your lighting! als facing barriers in finding employ- El Barrio’s training program pointers on updating her resume, ment. Some are on public assis- takes about a month and now in- references and cover letter. The No more FirstEnergy rebate for 2015 or 2016 tance, others aren’t. Some simply cludes the mock interviews, which face-to-face interaction also helped need general training, a refresher in are done at the Reminger offices on refine her English some. English, or help drafting a resume. the third Monday of the month over “It helped me a lot,” she said. • Brighter Lighting All Reyes really needed was a job. lunch with different attorneys who Reyes was underwhelmed with And a unique opportunity of- her first job she took as an on-call • 50% Energy Savings volunteer to participate. The poten- fered by El Barrio, she said, helped tial applicants get a unique feel for translator with Vocalink, largely be- • Fast Payback her achieve that. a real and often intimidating job in- cause of the hours coupled with the Through a special partnership, terview atmosphere that some may cost of traveling around Greater • FirstEnergy Rebate Cleveland law firm Reminger Co. never have been exposed to before. Cleveland, in light of the modest pay. offers mock job interviews to indi- The lawyers are paired together “That was a nightmare,” she said. • Replace HID high bays viduals seeking assistance finding — usually a veteran with a younger But today, after a little guidance from El Barrio, Reyes is a full-time • Upgrade T-12 fixtures work through El Barrio. Many come partner, Murray said — in what has from other countries. Some are on become known at the firm as Men- office manager at the Hispanic public assistance, are experiencing tor/Mentee Mondays. The goal is to Business Center. CALL TODAY before it’s too late! hardships or are just seeking a job help the attorneys, who might “It was a long time trying to get a that could improve their lives. rarely see one another during the job,” Reyes said. “But this was help- 330-931-3905 While many companies assist El work day, to collaborate on the ful. It’s hard, but not impossible.” [email protected] • www.ROI-Energy.com Barrio in different ways, including community service project. Reminger and El Barrio have offering actual job training in some Meanwhile, applicants await their made the partnership a core feature of their jobs program. The effort has TURN-KEY LIGHTING PROJECT - NO INTERRUPTION areas like customer service, it’s un- turn in the lobby, meet with intervie- common for a group to get involved wees in a bright conference room already expanded well beyond just as Reminger has. The monthly and conduct their mock interview involvement by members of the mock interviews began in May. followed by a debriefing where women’s initiative as male lawyers “We are possibly the only pro- everyone breaks character to discuss have joined in, too, and even Sher- gram in town that has more than 35 what worked and what may need win-Williams Co., with which different companies that partici- some tweaking, be it resumes or Reminger shares a building. pate in training for job seekers,” even the words a person uses to sell For Murray, “knowing we helped HOW BAD IS THAT LEAK? said El Barrio director Ingrid Angel. themselves. play some small part in helping “But it’s unique for a workforce de- For some, it may be their first in- someone reach their own goals is velopment program to have this terview in the United States. just awesome.” kind of corporate involvement.” “We are not only seeing more “Like so many things that turn The idea for the collaboration people getting hired, we’re seeing out in efforts to help other people, started with Reminger partners them come out better prepared,” you get back tenfold what you Michelle Sheehan, who volunteers Angel said. “Others are getting give,” she said on the government relations com- more second and third interviews While El Barrio values every par- mittee for the nonprofit Centers for at other places. ticipating organization, Angel said Family and Children, and Bethanie Since May, about 35 people have she’s grateful Reminger chose to get Murray, who co-chairs the firm’s completed the program that now involved the way they have. Women’s Initiative. That initiative includes the mock interviews, and “This should be a model for other was created in 2008 to help further at least 25 have found and kept new organizations to see that it’s not that the career of female attorneys. jobs — creating a roughly 70% difficult to sacrifice their time and “We really felt that helping other placement rate. invest in our community,” she said. Keep your assets safe by taking the time to ensure that problems people to develop their careers is in While just one component, Angel “They prove they can spend a lunch at the top of your building are not damaging your bottom line. line with what the Women’s Initia- said, “This has been a huge element hour and a little bit more and have a tive is doing internally,” Sheehan of success for our program.” huge impact on the community.” Carey Roofing Corp. has eliminated asset damage due to a leaking roof with practical solutions since 1946. Volume 35, Number 43 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 MEMBER: cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for 216 • 881 • 1999 St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s CAREY National Roofing Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: www.careyroofing.com Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- Roofing Corp. Contractors Association $2.00. 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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 TAPPING INTO HISTORY Magnet has Cleveland beer garden skilled approach from late 1800s is being to lead the way brought back to life as By RACHEL ABBEY McCAFFERTY Forest City Brewery [email protected] As manufacturers continue to look for ways to By STAN BULLARD close the skills gap and attract new employees to the [email protected] industry, Magnet’s Work-Based Learning program could serve as a possible model. Two types of equity — old-fashioned There’s a lot of information available on work- sweat equity familiar to the West Side based learning, but it’s unique to see a step-by-step and new-breed crowdfunding that uses guide to getting started like Magnet has put togeth- Above, the logo for the new brewery. Below, Jay Demagall, a partner in the brewery pro- an Internet platform to find investors — er, said Linda O’Connor, assistant director for ap- ject, sits in front a 1927 Chevy Woodie pickup truck, which will become a delivery vehicle. are going into a plan to resurrect a one- prenticeships under career-technical education for At bottom, a delivery vehicle from the original Forest City Brewery, open from 1839-1880. time beer garden as part of a brewery in the Ohio Department of Education. She said Cleve- Cleveland’s Duck Island. land-based Magnet’s working guide sets up a Originally, the partners planning to “seamless pathway” that outlines educator and open the Forest City Brewery and beer- company expectations. tasting pub wanted a different site, but The current version of the working guide includes Sammy Catania, a staffer at the Tremont a clear overview of the benefits to each party affect- West Development Corp. nonprofit, ed by the program, from students and their parents showed them a subdued gray commer- to teachers to the participating companies, and out- cial building on the southeast corner of lines individual responsibilities for each. It also Columbus Road and Freeman Avenue. boasts resources like a month-by-month timeline In 1915, the timber frame warehouse for implementing the program, a breakdown of legal and liability issues, and tips for students on had gone in atop a site that housed the meeting with employers. Silberberg Bros. Beer Garden from 1880 The Work-Based Learning program, now in its third to 1900. year, connects local schools and companies to put stu- Jay Demagall, a partner in the Forest dents between their junior and senior years into paid City Brewery venture, said the group was manufacturing internships. Magnet serves as the in- sold when it found that part of the beer termediary in the program, helping companies create garden — now a grassy yard — still ex- job descriptions, educating them on child labor laws ists. and providing a guide for the role of a mentor in the Demagall was interviewed recently workplace, said Judith Crocker, executive director for during a break from the physically de- work force and talent development for Magnet. manding work required to bring Forest The state Department of Education, which is do- City Brewery to life. He had just finished STAN BULLARD ing a “strong push” around manufacturing appren- painting a bench in the former open-air ticeships this year, plans to include Magnet’s work- beer garden. His next task was going in- ing guide as one of the resources on its recently side to perch atop a cherry picker to re- launched internship and apprenticeship webpage, sume vacuuming the timbers forming O’Connor said. the property’s ceiling. A 1927 Chevrolet And soon, such programs will be easier for Ohio truck and old wooden ice boxes also companies to take part in with the passage of a state have been wheeled in. Those and other law that will set aside funds to partially reimburse steps are the sweat equity tack, long fa- companies for taking on student interns, which is miliar in Tremont and Ohio City residen- expected to start this fall, and the implementation of tial restoration efforts. a pilot internship program to do the same through The other equity comes from not just the state’s Manufacturing Extension Partnerships. one, but two, crowdfunding campaigns. (Magnet is taking part in the pilot.) The first, through Kickstarter, raised Magnet received funding for the Work-Based $24,000 to buy brewery equipment. The Learning program in 2012, and student internships second — a plan to raise $250,000 for a at participating companies began in summer 2013. loan for improvements to the buildings Nearly 30 students participated in the program in interior — is underway in a campaign by each of the first two years, along with 16 companies Vestor, a Cleveland-based real estate in 2013 and 27 in 2014. The program primarily is crowdfunding platform to raise debt or funded by grants from the Martha Holden Jennings equity for property development pro- Foundation, the Nordson Corp. Foundation and the jects. Vestor is limited to accredited in- Fred A. Lennon Charitable Trust, which Magnet uses vestors under Securities and Exchange to help pay for the time its staff and the staff at the Commission laws. schools spend working on the program, as well as as- “We were starting to look for loans but sessment costs for industry certification for students. See FOREST CITY, page 27 CONTRIBUTED PHOTO See MAGNET, page 27

New hire thinks library donations are overdue A CLOSER LOOK:

By TIMOTHY MAGAW powerhouse that raises at least five times Foundation, Anshe Chesed Fairmount Jason Jaffery [email protected] that amount for the Cleveland library, Temple, Free Medical Clinic of Greater HOMETOWN: which has 27 branches throughout the Cleveland and Case Western Reserve Beachwood, Ohio Jason Jaffery might be working on be- city and a downtown branch on Superi- University. half of the Cleveland Public Library, but or Avenue. “It’s an incentive,” he said. “As my col- EDUCATION: he certainly has no plans to keep quiet. It won’t be easy, Jaffery agrees, but he leagues around the city pick up and New York University In fact, he’s being paid to be as loud as believes Clevelanders have the where- phone and meet with generous donors, Film School possible. withal to funnel more of their philan- it’s incumbent on me to do the same and CURRENT TITLE: Jaffery recently took over as the first thropic dollars into the library like they tell the story of the library and help peo- Executive director, executive director of the Friends of the do the city’s other cultural, education ple understand the needs the library Friends of the Cleveland Public Library, a separate, 60- and health care institutions — many of has.” year-old nonprofit that quietly raises be- which already are knee-deep in their Since 2009, the library has seen its Cleveland Public Library tween $150,000 and $200,000 each year own ambitious fundraising campaigns. funding from a property levy and the PAST FUNDRAISING EXPERIENCE: to support the library’s operations. But “The fact there are other organizations state plummet by almost 30%. The prop- ACLU of Ohio Foundation, Anshe Chesed Fairmount given the funding crunch plaguing li- raising significant dollars should not and erty levy, which voters reauthorized last Temple, the Free Medical Clinic of Greater Cleveland, braries, Jaffery has been tasked with cannot be an obstacle to our efforts,” year, continues to be a challenge to col- turning up the volume and transforming said Jaffery, who previously served in lect given the still-lukewarm economy. Case Western Reserve University School of Medicine the sleepy nonprofit into a fundraising fundraising roles at the ACLU of Ohio See LIBRARY, page 30 20141027-NEWS--6-NAT-CCI-CL_-- 10/24/2014 2:23 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Ebola concerns are causing Another Receivership Property Prospect Park 4616 Prospect Avenue companies to seek legal advice Cleveland By JEREMY NOBILE [email protected]

Americans are terrified of the Ebo- la virus. And while the country has yet to see any true outbreak, fear of the dis- ease has skyrocketed since the first confirmed reports of the virus in North America. Citizens now rank Ebola among the biggest problems facing the United States, ahead of poverty and terrorism, according to a recent Gallup poll. In Ohio, there have been no confirmed Ebola cas- SOLD es, a couple quarantines, and about 160 reports of an individual coming Gregory B. West seventy-fifth 75 anniversary in contact with an infected person, David R. Horowitz according to data from the Ohio 216.861.7200 | www.ostendorf-morris.com Emergency Management Agency. global commercial real estate services But Ebola concerns are raising a litany of legal questions as well, from how companies should treat employees possibly exposed to the virus or an infected person to whether quarantines infringe on an individual’s own civil liberties. Victor Geraci, a labor and employ- McDonald Hopkins BUSINESS HOUR ment attorney at Fisher & Phillips, said many employers are looking for help “digesting” laws and information already out there to evaluate Antitrust their liability, particularly those in health care fields or where interna- Do’s and Don’ts tional travel is a part of the job. “There is confusion, and because Staying out of the line of fire there is a group of people who would normally look to law firms on work- Wednesday, November 5, 2014 place safety issues or protection of employee safety, they’re doing so Noon to 1:00 p.m. EST now,” Geraci said, adding that he’s Scan to register McDonald Hopkins quick to remind clients “this is not a

600 Superior Ave., Suite 2100, Downtown Cleveland crisis at the moment.” GETTY IMAGES Register at mcdonaldhopkins.com or call: 216.348.5400. “It’s not an outbreak, it’s a scare,” said Joe Gross, a partner at Benesch If that employee is not being had Ebola-related symptoms. The specializing in labor and employ- paid, Van Tassel thinks not. person was seeking advice on how ment law. “And because it’s a scare, In contrast, the law provides for to be fair not only to the individual, people are reacting.” other similar situations where a per- but to other employees possibly Gross said he’s fielding questions son could miss work, like if some- fearing exposure, regardless of the McDonald Hopkins LLC from supervisors and employers one were called upon for jury duty, likelihood. 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)t across numerous fields who are or even to serve in the National Gross said he encourages employ- Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member seeking similar counsel. Many wor- Guard. In both cases, the govern- ers to consider drafting their own $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI ries center on labor laws, he said, as ment is asking a person to miss policies for dealing with the poten- employers aim to protect their own work to benefit the greater good, tial effects of Ebola and the compli- mcdonaldhopkins.com companies from the potentially in- Van Tassel said, but the individual is cations arising from it to establish fected by encouraging people to stay protected in those cases from losing protocols that can be applied equal- home, even if they were just briefly pay or otherwise being retaliated ly. If a person is being asked to stay in the same room as an infected per- against. She argues the same pro- home for any reason against their son. tections need to be created in pub- will, Gross suggests drafting an But a thin line separates proper lic health law not only for potential- agreement allowing the person to procedure and potential workplace ly ill Ebola victims, but to address continue earning pay to avoid any discrimination. future issues that could stem from possible legal ramifications. the appearance of an infectious dis- “Some employers may want to Out of date ease on American soil. be in front of the issue, many oth- Similar fears have arisen before ers would not,” Gross said. Katharine Van Tassel, director of with the threats of severe acute res- “But if they deal with it once, the Public Health Law and Science piratory syndrome (SARS), Avian in- they should deal with it in a policy Center and Health Law Program at fluenza (bird flu), even decades ago sense so they treat everyone the the University of Akron, says part of with the spread of AIDS in the same.” HELP YOUR ACHING JOINTS the issue stems from America’s anti- 1980s. All are diseases that once be- Meanwhile, Van Tassel said the quated health laws, written in 1953, longed solely to animals and found federal government could take HEAL THEMSELVES that don’t outline protocols for deal- their way to humans, Van Tassel some similar advice. ing with a potential pandemic like notes. And similar issues are bound “We want to have a plan in place Ebola. Those laws create the power to happen again. so that people trust the govern- to impose quarantines. “We need a process in place that ment and choose to cooperate,” Regenerative Orthopedic The lack of clarity creates un- says you don’t lose your personal Van Tassel said. Therapies Include: knowns, which begets fear. Van Tas- rights because you’re in quarantine,” “If people do not trust the gov- sel calls it “emotional epidemiolo- Van Tassel said. “It just boggles my ernment, they may not come for- • Platelet Rich Plasma gy.” mind that if we ask these people to ward and report that they have (PRP) Injections How to treat an employee who sacrifice for the community … that been exposed to an infected per- • Stem Cell Treatment for may have only been near an infected we’re not handing them a brochure son, and then they could spread Arthritis and Back Pain person is a significant gray area, Van saying, ‘These are your rights.’’ the virus further,” she added. Tassel said. If an employee with no “It is imperative that lawyers, healthcare providers and public diagnosis of Ebola and questionable Balancing act symptoms was forced to stay home health officials come together to Find out if you’re a candidate. by the government or their boss, Gross said one employer was ask- update Ohio law to properly bal- 844.786.2355 have they been unfairly labeled as ing how to treat an employee who ance the protection of public regenorthopedics.com disabled? Would such actions hold lived with someone who had con- health with the constitutional up if challenged in court? tact with a person who “may” have rights of its citizens. ” 20141027-NEWS--7-NAT-CCI-CL_-- 10/23/2014 11:39 AM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

Region loses 527 jobs in September

By SCOTT SUTTELL [email protected]

Northeast Ohio shed 527 jobs in September from August, the new Ahola Crain’s Employment Report finds. It’s a barely perceptible figure in a region with a work force of about 1.16 million people. Jack Kleinhenz, the Cleveland Heights economist who created the ACE Report model, points to another, much larger number — 60,790 — as telling a more meaningful story about the state of the Cleveland- Akron area’s economy. That’s the number of jobs the region added from September 2013 to September 2014, according to the ACE Report, which is based on payroll data from about 3,000 employers that is gathered by The Ahola Corp., a Brecksville payroll and human services firm. “We’re gaining jobs. There’s no doubt about it,” Kleinhenz said. “It’s Kleinhenz said the year-over-year not great, but relative to a year ago, data show that “we’re progressing at a we’re gaining some traction here.” decent fashion.” However, he added, The seasonally adjusted data show “If you compare the three-month Northeast Ohio’s work force totaled (seasonally adjusted) trend to the six- 1,159,330 in September, down .05% month trend, it appears that our pace from 1,159,857 in August. Small firms of growth has probably softened.” — those with between one and 49 The September ACE Report repre- employees — shed 226 jobs in Sep- sents something of a leveling of the tember from August, while firms with see-saw pattern of the report’s previ- 50 or more employees lost 301 jobs. ous two months. In August, the sev- Our strength is in our numbers. Over the last year, though, small en-county Cleveland-Akron metro- firms have added about 24,600 jobs, politan area showed a gain of 4,372 to 475,561 positions in Northeast jobs in the private nonfarm sector We provide the building blocks to get commercial deals done: Ohio in September, according to the from July. The July report, though, One of the area’s largest real estate practice groups ACE Report. Companies with 50 or found a loss of 6,776 jobs from June. more employees have added about Kleinhenz said positive state and na- Unmatched level of experience Breadth of services 36,100 jobs, to 683,769 positions in tional trends are likely to bolster North- Depth of resources September, the report finds. east Ohio’s job market going forward.

Charles Riehl Nowacki Asset Management LLC Kevin Murphy Nathan Felker Josh Hurtuk

Megan Todd Nick Hunt Catanzarite Zaidan Heather Baldwin Carl Dyczek Vlasuk Sophia Deseran Geoffrey Goss

Jack Waldeck

Tyler Bobes

Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period Management (NET) Million Return Million May 2011 - Year End -7.46% $925,400 -6.37% $936,300 2012 29.99% $1,202,927 16.00% $1,086,108 2013 51.76% $1,825,563 32.39% $1,437,898 8/31/2014 21.27% $2,213,931 9.88% $1,519,283

Note: Returns are shown in U.S. dollars after fees. Date of inception for Nowacki Asset Management is May 2nd, 2011.

Nowacki Asset Management (NAM) is a registered investment advisory firm specializing in value-oriented investment management. All client assets are included in one composite and invested using a value-oriented strategy. NAM claims compliance with the Global Investment Performance Standards (GIPS®). Results as of 8/31/2014 The Real Estate Attorneys of are still subject to final verification by an independent third-party. NAM only uses short-term margin or leverage to buy securities after a client commits to deposit funds and the funds are in the process of being transferred, but the money has not yet completed the transfer process. To receive a list of composite descriptions of NAM and/or a presentation that complies with the GIPS standards, contact Michael T. Cleveland | 216.781.1212 | www.walterhav.com Nowacki at (440) 488-6936 or write Nowacki Asset Management, 29525 Chagrin Blvd. Suite 301, Pepper Pike, Ohio 44122, or [email protected]. www.nowackiassetmgmt.com 20141027-NEWS--9-NAT-CCI-CL_-- 10/23/2014 3:42 PM Page 1

OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Cousins weren’t scared to take haunted house to the next level

By JUDY STRINGER [email protected]

Eighteen nights. That is all the time haunted house owners and operators have to reap a profit by scaring the living daylights out of people. A few “off” nights — be it bad weather, long waits or competing fright-filled venues — can lay ruin to the entire season. Even retailers that count on the four weeks between Thanksgiving and Christmas

to pad their profit margins would MCKINLEY WILEY shudder at those kinds of odds. In 2012, cousins Max Simon, left, and Nick Francis moved The Fear But, Nick Francis and Max Simon Experience Haunted House to a more permanent home — the former do not scare easily. The cousins in Value City Furniture building in Parma. 2008 created their first haunted attraction, which they named Hell’s CONTRIBUTED PHOTOS Gate, in Francis’ backyard after ABOVE AND RIGHT: Scenes from The THERE’S A LOT TO LIKE hearing about a $25,000 contest for Fear Experience Haunted House in the best home haunt on “Good Parma. Since many haunt owners do not share attendance figures, sites trying to Morning America.” At the time, they happily turned set design over rank them rely on less empirical data. Funtober.com uses Facebook “likes,” Francis, formerly of Toledo, was 16 to an artistic team, hired managers according to the site’s CFO, Wayne Melton. and Strongsville native Simon was to help out with the operations and, Last year, Fear Experience had 57,000 “likes,” which gave it the top spot 14. particularly this season, have fo- in Ohio. It looks to rank high again this year, now having culled more than Their monstrous creation did not cused more closely on the market- 77,500 “likes.” — Judy Stringer win. It did, however, attract 500 hor- ing side of the business. ror hounds (despite a ban on advertising set forth by neighbors in the Toledo suburb) and, more impor- Spreading the fear tantly, it proved the teens had a tal- Recognizing customers still in- ent for terror. side their building are marketing “We saw the 500 people and gold, The Fear Experience owners knew there was a business there,” dole out logo bracelets to anyone said Simon, co-owner of The Fear praising the haunted attraction on Experience Haunted House in Par- social media before leaving. They ma. “We decided that night after we even created a red-carpet inspired closed to make an operation out of photo backdrop where a staffer this.” snaps photo of a guest, often along- Over the course of six years, small side a monster, to post immediate- haunted houses grew into bigger ly. ones. They erected creepy configu- They also rolled out ticket sales at rations on indoor soccer fields and Costco and launched a program to in strip malls each September and target bar crowds by partnering tore them down in November. with Cleveland Whiskey. Fear Expe- Everything was handmade, cour- rience monsters and ghouls hit local tesy of websites, how-to videos and bars, where Cleveland Whiskey of- trade shows. fers special shots. It is all part of cre- “We didn’t have any money,” Looking for oil and gas executives? ating a buzz. Francis said. “We didn’t go buy “Now you have people here post- props. We learned how to build ing pictures and then other people We know 33,000 of them. them. We learned how to build a website. We taught ourselves every at a bar posting pictures with the aspect of the business.” same monster,” Simon said. In 2012, Francis and Simon, who These newer enhancements are are now 22 and 20 years old respec- additions to a marketing strategy tively, signed a lease on the former that already included high-quality BUSINESS DIRECTORY AND Value City Furniture in Parma and commercials pushed through Face- moved into their first year-around book and over-the-top imagery. SUPPLY CHAIN ISSUE home. The 90,000-square-foot facil- The grisly zombie featured on the ity, at Tiedeman and Brookpark website and print material spent 10 roads, features four haunted hous- hours in a makeup chair before be- The winter 2014 issue of SHALE Magazine will feature es under one roof. For $22, brave coming the face of Fear Experience. patrons wind their way through The cousins also have found cre- an expanded business directory. This edition will show large and elaborate sets from a ative ways to use their facility outside readers how Ohio companies have found new sources of haunted estate to a chilling circus. of the Halloween season. Mush- In one room, guests float in a roomhead shot a music video there, revenues and earned their place in the shale-gas supply ghoulish soup created by laser while aspiring zombie hunters shot chain -- while still other companies have come to Ohio to paintballs at the undead. beams cast over manufactured carve out their own niche in the oil and gas sector. smog. In another, blood spattered Francis will not disclose ticket “body bags” put off gory scents. sales. Nor will he reveal how many Throughout the four gruesome people meander through the haunt- mazes, motion sensors trigger ed houses on an average night, but ISSUE DATE: AD CLOSE: MATERIALS DUE: screams, fire crackers and air blasts, said that number is “in the thou- and sturdy sets allow actors to sands.” On one recent Saturday, the December 15 November 6 November 13 stomp, climb and leap around help- 680 parking spots out front were less victims. full. It is rare for anyone to come to Many of the Fear Experience a haunted house alone. Often cus- components are the same ones the tomers come by the carload. duo has used for years, but “taken “This really has been the year to the next level,” Francis said, by when everything has come togeth- the likes of Richard Thomas, aka er, especially on the marketing Stitch of the band Mushroomhead, end,” Simon said. “We’ve always and other local artists. had a lot of ideas, but we are always Francis and Simon, who is a so busy getting the houses ready to sophomore at Case Western Re- go, we’d run out of time to try all of BOOK YOUR AD TODAY. serve University, no longer do our ideas. This year, we knew it Contact Nicole Mastrangelo at 216-771-5158 or [email protected]. everything on their own. In fact, needed to be top priority.” 20141027-NEWS--10-NAT-CCI-CL_-- 10/23/2014 4:11 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Cleveland’s comeback Back in July, Forbes magazine tossed this out: Who’s the more powerful person in Cleveland — LeBron James or Toby Cosgrove? It’s an interesting question to ponder, especially this past summer, when the NBA superstar and the Cleveland Clinic CEO were occupying national FROM THE PUBLISHER headlines. Would free agent James stay with the Miami Heat or return to his hometown Cleveland Cavaliers? Would Cosgrove leave the Clinic to take Welcome visitors, not fleece them over the embattled Department of Veterans Affairs? We all know how that turned out: James is back There’s at least one local hotel, a mod- in two weeks to fund a retirement. study here. playing with the Cavaliers, and Cosgrove withdrew est place next to the highway in the east- For most of us, the convention won’t It’s been more than a dozen years his name from consideration for the federal post and ern suburbs, that apparently sees the create any immediate benefit. And for since the world was introduced to Salt 2016 RNC Convention as an ATM. those of us working downtown, the traf- Lake City at the 2002 Winter Olympics. remains at the Clinic’s helm. A national media organiza- fic and security are going to The Games weren’t perfect — there was It’s a win-win for Cleveland and for business here. tion scouting for rooms was combine into a weeklong a bribery scandal before the event and a Turns out both James and Cosgrove are MVPs in quoted a price of $500 a night headache. figure skating judging scandal during — Northeast Ohio, representing institutions that (about five times the typical It’s crucial for all of us — but for visitors and viewers, the city not rate) with an eight-room, those who might make some only delivered, it dazzled. provide huge economic benefit, good public eight-night minimum. That’s coin on the convention and The long-term effects? Since 2002, Salt relations and real hope for a region that needs them a bill of $32,000 before taxes, those who won’t — to remem- Lake City’s convention business has all in equal measure. taxis and mini bar. ber why this event is so impor- doubled. Tourism is up more than 40% Proof of that will be on full display this week. I’ve heard from others that tant. and tourism spending is up almost 70%. On Monday, Oct. 27, the Cleveland Clinic kicks off this is happening at other local Tens of thousands of dele- Billions have been spent in additional hotels, too, with prices much gates and attendees and about downtown development. The airport is its 12th annual Medical Innovation Summit at the higher than $500. JOHN 15,000 members of the media undergoing a $1.8 billion facelift. The Cleveland Convention Center. More than 1,500 of This week’s issue of Crain’s CAMPANELLI are coming to town. The vast cultural, arts, dining and bar scenes are the top minds in health care, CEOs of major features special coverage of majority will have never been thriving. corporations, government leaders and big-time the convention’s effect on lo- here and would have never “The Olympics have moved our com- cal business. Included among the arti- come without this convention. These are munity 10 to 20 years ahead in our effort investors will come together in downtown Cleveland cles is advice for companies, service men and women with wealth, power, in- to become a great American city,” Salt to discuss the future of cancer treatment and providers and vendors on how to get a fluence and audience. Lake City Mayor Ralph Becker has said. personalized medicine. share of the roughly $200 million that We need to knock their argyle socks The Games also completely trans- The summit will be capped off with the unveiling will be spent before and during the off. formed the city’s image. event. Priority No. 1 needs to be the visitor We don’t have snowcapped moun- of the Clinic’s list of top 10 medical innovations that It’s valuable information. And some experience. Priority No. 2 is not short- tains to show a world audience, but we will have the biggest clinical and societal impact in local businesses — like those in con- term, shortsighted price gouging. In fact, know we have tons to offer visitors and 2015. struction, event production and, of there is no priority No. 2. future conventions and conferences. Ideas. Investment. International acclaim for being course, accommodations — are going to That $200 million spend is great, but So let’s all play the long game, work to a region that leads in medical innovation. All of those do very well come July 2016. it’s just the first installment if our visitors get this right and step away from the But there is a difference between “do- fall in love with Cleveland and share that ATM. go into Northeast Ohio’s win column. ing well” and fleecing visitors. love with the world. Who knows, a Brink’s truck might pull And on Thursday, Oct. 30, the Cleveland Cavaliers No business is going to make enough This is not just talk. There’s a case up instead. will tip off their season against the New York Knicks at Quicken Loans Arena, putting the city back in the chase for a championship that Clevelanders have craved since the Browns last won one a half-century ago. TALK ON THE WEB More importantly, the Cavs will add to the Re: Indians and dynamic ball and ludicrous for the Indians in par- Re: Admissions taxes momentum of Cleveland’s downtown renaissance ticket pricing ticular. on the web and the spinoff economic value that it brings for the These days, they might sell out two or Dynamic ticketing would only work if three games per year. Thus the demand A friend sold exhibition game tickets region. there was no minimum bottom set to basically never exceeds the supply. And at a loss and was still charged an admis- The Clinic and the Cavs — and the many other prices. it is an insulting and offensive way to sions tax. major players on Team Northeast Ohio — continue Right now, you know the minimum is treat the historically blue collar ethos of While I don’t agree with the city’s abil- to cast our comeback in an ever more favorable light. going to be what season ticket holders the fanbase. — Lisa Matsuda ity to charge an admission tax on what is pay. — John D. Beyond the direct dollars these businesses generate, really a capital gain on a sale of an asset, There are hundreds of dynamic pric- clearly there should be no charge for their success can only help in attracting more Dynamic pricing is offensive in princi- ing schemes. Some are offensive, some tickets sold at a loss. — Donald Sinko visitors, more energy, more profile and more ple. are not. investment on a global scale. I can’t imagine sitting through a bas- But the most common software prod- Re: New CEO for Things ketball game for free, never mind lining We can continue to dream of an NBA title and a ucts are made by people who do not un- the pockets of profiteers and obscenely derstand its principles and therefore its Remembered cure for cancer. But we’re already winners. wealthy owners, principals and players. products never reach the managers ob- Congratulations to the retailer’s new But dynamic pricing is criminal for base- jectives. — Carlos Pronsato CEO, Lisa Gavales! 20141027-NEWS--11-NAT-CCI-CL_-- 10/23/2014 11:39 AM Page 1

OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

PERSONAL VIEW AVAILABLE FOR SALE 12,000 SF Truck Facility & Yard on 6.55 AC The business case for pro bono 2040 Sandusky St., Plymouth, OH 44865 By JOAN SYNENBERG Pro bono representation is not Synenberg is a judge for the Cuyahoga and PATRICK HAGGERTY just about building a company’s County Common Pleas Court and philanthropic profile. The business Cleveland stands as a pioneer in chairs the Eighth District Ohio State community also benefits with unin- communitywide charitable giving. Bar Association Pro Bono Task Force. tended gains from their involve- The nation’s first community Haggerty is a partner at the law firm ment. foundation, the Cleveland Founda- Frantz Ward. It is no secret that social issues — tion, was established in 1914 by from poverty to health care — are Frederick Goff, a contemporary of have a true democracy all segments increasingly impinging on corpo- John D. Rockefeller. Last year, the of our society must have a place at rate agendas. United Way marked a centennial the table of justice. Volunteer attorneys often reflect anniversary. It traces its roots to the The American Bar Association that by helping their less-fortunate • 12,000 SF total area • 16’ clear height in warehouse area Community Chest fundraising dri- nationally recognizes volunteer at- fellow citizens, they are better able • 1,600 SF office area • Built in 1996 & 2001 ves, which began raising money for torneys with its annual “Pro Bono to navigate life’s hurdles and help • 10,400 SF warehouse area • Air compressor and air lines health and social services in Cleve- Week” each October. Here in their employers anticipate and • Ample parking for cars and trucks • Oil & Water separator for floor drains land in 1913. Northeast Ohio, we just finished the manage problems. • (6) 14’x14’ overhead doors • Convenient access to the Ohio Our region also boasts an im- celebration — and used the oppor- Attorneys tell us that through • (2) 10’x10’ dock doors Turnpike & Rt. 30 pressive legacy in the legal arena: tunity to recognize attorneys with a their pro bono work and engaging specifically, in ensuring that those variety of events to thank them for with judges and nonprofit board David R. Stover, SIOR who cannot afford a lawyer, and their pro bono service — of service members they have enjoyed expe- there are many, have access to jus- that may profoundly change and riences that are otherwise not in 216.839.2012 tice. improve the life of someone in our their ordinary course of business. HannaChartwell.com Unlike criminal cases, where the community. Ultimately, lawyers find the experi- accused are constitutionally enti- Over the years, our community ence helps them become better ad- tled to counsel, there is no right to and the Legal Aid Society of Cleve- vocates and corporate problem- counsel in the United States in civ- land have benefited from the vol- solvers. il matters. People with low or no in- unteer efforts of locally based attor- Consumer sentiment, media come, who have issues that may re- neys from big firms and small, sole coverage and government regulato- late to housing, child custody, practitioners and government ry pressures are increasingly dri- domestic relations or consumer lawyers. One particular group of ving business in the direction of law, need the help of a zealous ad- lawyers — in-house attorneys, who more sustainable practices, paying vocate on their behalf. work as general counsel in corpora- attention not only to the financial Without proper legal representa- tions and other enterprises — have bottom line, but also the environ- tion, hundreds of thousands of cit- adopted Legal Aid as their “pet pro- ment and the health of the local izens in this region would not enjoy ject.” Their professional group, the community. the most basic human rights: shel- Northeast Ohio Association of Cor- Contributing pro bono legal ser- We want to make sure you and your little goblins ter, safety and health care. porate Counsel (NEOACC), gener- vices adds value to the vibrancy of a have a safe and fun holiday. Please follow these Our community is blessed to ously organizes clinics for Legal Aid corporation’s community, which in tips to keep them safe while Trick-or Treating. have the nationally recognized Le- four times a year to do their part to turn drives greater profitability. A gal Aid Society of Cleveland, which ensure appropriate legal represen- corporate culture that includes vol- has provided nearly 110 years of tation in the civil justice system to unteerism can be a form of enlight- Add reflective tape to costumes for greater visibility service to the community. Every those in need. ened organizational self-interest. year, Legal Aid and its capable full- These attorneys serve as shining The recent national observation time staff processes 17,000 applica- examples of the business commu- of Pro Bono Week causes us to Never cross between parked cars or out driveways tions for help from people who are nity stepping up to assist those who pause and reflect on the benefits of low-income and have cases of legal may otherwise be denied civil jus- volunteerism and public service merit. Of those, Legal Aid only has tice. As John D. Moran, the general throughout the year. Carry a flashlight, stay on well-lit streets and always use sidewalks the resources to help 43% of those counsel of GrafTech International Lawyers protect people, defend people. Consequently, the impor- and a member of NEOACC, stated, the poor and serve as advocates for tant role of the pro bono (volun- “By participating in the Legal Aid those who have no voice. With Na- teer) lawyer cannot be overstated. clinics the corporate counsel do get tional Pro Bono Week now behind Thousands of Northeast Ohio at- out of their comfort zone. But it us, please take time to reflect on torneys respond to the justice gap helps us get more grounded and these principles and carry forward by donating their professional ser- connected to the community, to Cleveland’s long-standing tradition 1.800.ELK.OHIO vices to those in need. Lawyers rec- what’s really happening at the of philanthropy by helping those in elkandelk.com ognize, more than most, that to street level.” need.

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Omnova Solutions’ growth includes new digs Company, which recently moved from Fairlawn to Beachwood, aims to rebound from ‘disappointing’ third quarter via specialty businesses By RACHEL ABBEY McCAFFERTY ranging from masonry to metals to from its Akron plant, which will still announced — but said the “share In with the new [email protected] garage floors also is strong, as is the be used as a finishing facility, to the price decline is overdone as trends The company’s Oct. 13 head- engineered surfaces business. The converted Mogadore location. In going forward appear to have stabi- quarters move from Fairlawn to The recent move to new head- company is a big player in the all, the changes are expected to lized.” Beachwood will encourage more quarters in Beachwood will repre- kitchen cabinet market, McMullen save the company $4 million each And though Deutsche Bank ex- teamwork and collaboration sent a fresh start for Omnova Solu- said, and it sees growing opportu- year. pressed concerns about the pricing among employees, McMullen said. tions Inc., says the company’s nities in retail display. Omnova is adding capacity in pressure Omnova faces in its The location features open floor chairman, president and CEO, McMullen also expects Omno- the growing Asian market, includ- styrene-butadiene business, it said plans with few offices, which is in- Kevin McMullen. va’s nonwovens business to grow, ing at its plant in Caojing, China, restructuring initiatives, including tended to promote community and The maker of specialty chemical though it underperformed in the which has been running since 2011. “manufacturing rationalization, as- transparency, along with informal and emulsion polymers could use third quarter. The company pro- The plant gives the company the set repurposing and cost reduction gathering spaces and technology to it, as the company is forging ahead vides a binder that’s used in towels, opportunity to support customers actions” are helping to offset that. better communicate with employ- with a number of growth initiatives wipes and diapers. locally. Omnova also has plants in Overall, it gave the stock a “buy” ees around the globe. Additionally, after what McMullen called a “dis- He expects growth in the diaper China, India and Thailand. rating. the operating costs for the new site appointing” third quarter, in which and adult incontinence product “That’s a big opportunity for us,” KeyBanc Capital Markets contin- will be lower, and the company will the company posted net income of markets: emerging markets with McMullen said. ued to give Omnova’s stock a eventually own the building, unlike $1.8 million, or 4 cents per diluted growing middle classes have a “hold” rating in a Sept. 30 analyst leasing which it does now, Mc- share, compared with earnings of greater need for diapers, while ar- report, due to some “near-term Silver linings Mullen said. $9 million, or 19 cents per diluted eas without large birth rates have a headwinds” that look to be out of Omnova has also had some share, in the like period a year ago. growing need for the adult prod- Jennifer Klein, president of the the company’s control and general changes at the top recently, with McMullen said the biggest driver ucts. And the company plans to Ohio Chemistry Technology Coun- uncertainty around earnings. chief financial officer Paul DeSan- of the 80% drop in net income was watch for medical and filtration op- cil, said the chemical industry has KeyBanc said it was disappoint- tis joining the company in June and the company’s legacy, core busi- portunities in this segment in the seen growth in the past decade, ed that Omnova “failed to meet Anne Noonan being hired as presi- ness — paper coatings. future. though she didn’t speak specifically consensus expectations for the dent of its performance chemicals Demand for paper coatings is Omnova also is investing in its about member company Omnova. third quarter in a row” but that segment last month. dropping as the trend moves to- plants, repurposing those making A lot of the growth has come Omnova remains well positioned “Fresh perspectives are always ward electronic media. Omnova less successful products to support from capital investment, Klein said, in the long term as it puts a “focus good,” McMullen said. doesn’t report paper coatings sep- areas of growth. In the company’s pointing to the expansion of com- on growing its specialty applica- Noonan especially will be critical arately, but sales in the Perfor- North American coated business, panies in Northeast Ohio like PPG tions, works toward rebuilding its going forward, McMullen said, as mance Materials product line, McMullen said there is an overca- Industries Inc. or Ashta Chemicals margin profile and rationalizes ex- she comes to the company with which also includes carpet latex, pacity of styrene butadiene, which Inc. Currently driving growth is the cess capacity.” plenty of experience in M&A, turn- made up about 25% of the compa- is used in a variety of the compa- affordable, abundant feedstock for In addition to its focus on growth arounds and new product develop- ny’s sales in the quarter, the com- ny’s businesses to help with quali- the industry made possible by shale markets, Omnova has been fine- pany said in an email. ties like binding, water resistance gas drilling, she said. tuning its strategic marketing strat- ment. But, McMullen noted in a con- and gloss. Deutsche Bank took a relatively egy. McMullen said the company DeSantis noted that while the versation with Crain’s, the compa- For instance, the company is positive look at Omnova in its Sept. now has a stronger focus on gain- most recent quarter was challeng- ny is seeing growth in some of its converting excess styrene butadi- 26 analyst report, released shortly ing deeper insights into customer ing for the company, Omnova end- specialty businesses, and it’s look- ene capacity at its plant in Mo- after the company’s third-quarter needs, leading to the development ed the quarter with more cash on ing to grow those segments at a gadore to hollow plastic pigment, results were announced. of new products. its balance sheet than the previous faster rate in the future. which an email from the company The report noted the drop in McMullen said the company also quarter — about $13 million more, Those product lines include noted is being used for specialty share price after the “disappoint- trained its marketing team on how the company said. Overall, Mc- chemicals for oil and gas drilling, a paper and packaging applications, ing” quarter — it had fallen to $5.25 to better assess the market and dis- Mullen is optimistic about the pos- relatively new segment for Omno- markets with more stability than at the end of the day on Oct. 9, cover what makes Omnova’s prod- sibilities for growth. va. McMullen said the specialty publication papers. The company down from $7.01 on Sept. 24, be- ucts stand out versus the competi- “I think there are lots of opportu- coatings business for products also is moving some operations fore the third quarter results were tion. nities for this company,” he said.

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AND PECORA: John D. Wheeler to JOB CHANGES of counsel. RATHBONE GROUP LLC: Joel ENERGY Rathbone to managing partner; AMERICAN ENERGY PARTNERS Kimberly Rathbone and Jason LP: John K. Reinhart to chief Sullivan to partners. operating officer, American WALTER HAVERFIELD LLP: Energy-Utica LLC and American Benjamin G. Chojnacki to Lee Fritz DiCarro Sejka Browning Holland Energy-Marcellus LLC. associate. FINANCE MANUFACTURING FIFTH THIRD BANK, OURPET’S CO.: Kathleen NORTHEASTERN OHIO: Mike Lee Peters-Homyock to vice president, to senior vice president, large strategic planning and new business corporate treasury management development. officer. MEDIA FINANCIAL SERVICE BABCOX MEDIA: Jennifer Hazen Fogarty Chojnacki Hazen Wynveen Delguyd Pinto CANDLEWOOD PARTNERS: Marc to regional sales manager. Fritz to managing director, real estate. MEDICAL EQUIPMENT Anthony J. Delguyd to senior vice FINKLER & CO. CPAS: Tom CLASSIC DIAGNOSTIC IMAGING: president, corporate services group. AWARDS RETIREMENTS DiCarro to manager, client services. Melanie Eckstein to sales and PASSOV REAL ESTATE GROUP: WELLS FARGO ADVISORS: Michael sourcing manager. Ann Ertle to sales associate. PHILANTHROPY OHIO: DAVEY TREE: Gordon Ober (vice Sejka to branch manager, Center Denise San Antonio Zeman president, personnel recruiting and Ridge Road. NONPROFIT TECHNOLOGY (retired, Saint Luke’s Foundation) development) retired after 39 years of service. BURTON D. MORGAN BOXCAST: Josh Clemence to sup- received the Ohio Philanthropy WESTERN RESERVE HEALTH CARE FOUNDATION: Emily Bean to port analyst. Award; Andrea Timan (GE Lighting) COUNSELING SERVICE INC.: program officer. received the Emerging Philanthropist HEALTHSPAN: Felicia Browning to OECONNECTION: Mike Folk to Award. Vince Pinto (executive director) vice president, finance; Rebecca COMMUNITY ASSESSMENT manager, applications. retired after 37 years of service. Holland to vice president, general & TREATMENT SERVICES: John counsel; David Fogarty to Scalish to chief operating officer. compliance officer; Donna Crowe RAYMOND JOHN WEAN Send information for Going Places to [email protected] and Jeff Lewis to senior benefit FOUNDATION: Eres McKee to consultants; Brad Petrella and program officer for resident Danielle Hotschild to senior account engagement. managers. REAL ESTATE LEGAL Congratulations to law firms achieving BASS OHIO REAL ESTATE: KAUFMAN & CO. PLLC: Brent S. Elizabeth Laureano to sales Silverman to member. associate. 100% alumni participation MCDONALD HOPKINS LLC: NEWMARK GRUBB KNIGHT Jennifer Dowdell Armstrong to FRANK: Nathan Wynveen to in the 2013 -2014 Law Firm Giving Challenge member. associate. O’TOOLE, MCLAUGHLIN, DOOLEY OSTENDORF-MORRIS CO.: FIRM: ALUMNI COORDINATORS: Buckingham, Doolittle & Burroughs, LLP Allan P. Sweet ‘09 Buckley King Harry W. Greenfield ‘70 Cavitch Familo & Durkin Co., LPA James S. Aussem ‘75 Fay Sharpe LLP Sandra M. Koenig ‘87 Giffen & Kaminski LLC Lauren Tompkins ‘11 Lowe Eklund Wakefield & Mulvihill Co., LPA James A. Lowe ‘72 Gregory S. Scott ‘96 McCarthy, Lebit, Crystal & Liffman Co., L.P.A. Kenneth B. Liffman ‘79 Meyers, Roman, Friedberg & Lewis Barbara K. Roman ‘77 Nager, Romaine & Schneiberg Co., L.P.A. David E. Nager ‘90 Nurenberg, Paris, Heller & McCarthy David M. Paris ‘78 Reminger David A. Valent ‘08 We are an electrical and Spangenberg Shibley & Liber LLP Dennis R. Lansdowne ‘81 Taft Stettinius & Hollister LLP Missia H. Vaselaney ‘84 general contracting company Thompson Hine Diane S. Leung ‘92 Andrew L. Turscak, Jr. ’01 providing quality service to Tucker Ellis LLP Thomas W. Baker ‘98 commercial and industrial Weltman, Weinberg & Reis Co., LPA Donald A. Mausar ‘95 Cleveland-Marshall Alumni form an exceptional network of professionals, ever businesses throughout committed to the law school, the profession, and the community as a whole. Northeast Ohio. We are proud of all that you have achieved with your legal education, and grateful that you give back. WWW.DOUBLEENTERPRISES.COM Double Enterprises LTD, North Royalton, Ohio, USA Dean Craig M. Boise, the faculty, staff and students of Cleveland-Marshall Phone: (440) 230-9000 sincerely thank you. 20141027-NEWS--14-NAT-CCI-CL_-- 10/23/2014 11:40 AM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Akron chemical company has a familiar transition

By JENNIFER KARPUS sion that needs to be made in the and needed a load by the next Rubber & Plastics News area in which they participate. morning, a Sunday. “When you work for bigger com- He called Hull, and the company Michael Beck Jr. founded Poly- panies, you get involved with that was able to get the product into a mer Valley Chemicals in 1986 and Monday morning meeting or that truck loaded and to the plant by 7 loosened the reins this year. Friday afternoon meeting or when- the next morning. He said that is His son, Michael R. Beck III, took ever it happens to be … there’s al- why he thinks the company is suc- over as president of the Akron- ways a time to talk about stuff,” he cessful, as larger companies may based mineral filler provider in Jan- said, “(but) we’re always talking not have even gotten the message uary, while Michael Beck Jr. re- about it. We don’t necessarily have until Monday morning. mains as CEO. to wait until Thursday to talk about Polymer Valley Chemicals has “Michael’s been with me since something. It’s kind of nice.” been working on implementing the day he got out of college,” Beck Beck Jr. said the staff tries to as- some innovations as well. Beck Jr. Jr. said about his son. “He has a resemble for lunch often because it is predicts there will be a carbon ally good grasp of what we do and a good time to speak about busi- black shortage in 2015 and 2016. how we do it. ... He’s seen every- ness. “We’ve seized the opportunity to thing evolve … from just me to “I guess our biggest challenge is, put in what is called ‘carbon black where we are today.” as it always has been, how to re- transloading’ by putting an adden- Beck III has been full-time with main competitive against some dum to our facility in Georgia,” he the company for almost 18 years, very large companies,” Beck III said. but he began working part-time JENNIFER KARPUS said. The addendum allows container while he was still attending Miami Michael R. Beck III, left, succeeded his father as the president of Akron-based Polymer Valley Chemicals re- loads of carbon black coming in University. Beck III is not the only Polymer Valley Chemicals in January. mains competitive by maintaining bulk sacks to be transloaded from member of the second generation the highest quality of products, he super sacks to bulk trucks in a con- in the business, as Sean Beck, an da, he is wired into the business gether and with us, not for us,” said, as well as offering great cus- taminant-free environment. account representative, and Kristin and literally can answer the office Beck Jr. said. “I think that’s a key.” tomer service. “(It’s) a service we provide for (Beck) Clark, the director of pur- phone, which he likes. His father added that Polymer our customers who bring carbon “We still enjoy having him here, chasing and human resources, also Staying competitive Valley Chemicals is a niche player black in from overseas and need it have found their way into the fam- and we still need him,” Beck III in the market, and people respect transferred into bulk hopper ily business. said, but now Beck Jr. feels more Sean Beck explained the man- the company. trucks,” Beck III said. “It’s really nice for me,” Beck Jr. comfortable knowing he does not agement team in the company’s “You actually can talk to a person “We have a good location for the said. have to be there every day. production and warehousing facil- when you call us. I think that’s im- Southeast part of the country be- It is always a father’s hope to be Having a younger generation at ity in Macon, Ga., has been in place portant,” Beck Jr. said. “We’re not cause it’s convenient to the large able to pass on the business, he the helm brings a different way of for about 20 years. into the push-button stuff yet. I ports of Charleston and Savannah,” said, and so far things have been looking at things, Beck Jr. said. “I’m Beck Jr. said Harry Hull, Polymer don’t like that. And you can get a he said. going very well. still a dinosaur when it comes to Valley Chemicals’ vice president of hold of us on the weekend if there The company has some new “In fact, I’m working harder now some of the ways you do business manufacturing operations, who is is an emergency for delivery.” products rolling out, including for Michael than I probably did for and some of the technology,” he based out of the Macon facility, has some saline treated products such said. done a superb job for the company. myself. He keeps me busy,” Beck Jr. Going the extra mile as saline-treated silicas and a car- said. “I don’t think you ever feel total- “Now I’m 39, and (system facili- bon black saline concentrate, Beck Although he has given up the ly prepared to be named presi- tator) P.R. (Rainbow-Hull) still calls Beck Jr. said he will get called on III said, which Polymer Valley presidency, he has no desire to re- dent,” the younger Beck said, but me Mikey,” Beck III joked. the weekends once in a while. Chemicals makes a 50/50 blend. tire anytime soon. he has grown into the position and The company’s leaders say one One time, he was called on the “We’re also introducing a carbon “I jokingly say they’re going to said he has a great team. aspect that has worked well for weekend — he transfers the work black oil concentrate, which is an have to wheel me out,” Beck Jr. His father shared a similar senti- them is that none of them are mi- line to his home line on the week- old product that people used … said. ment. cromanagers. Beck Jr. said they give ends — and one of the tire compa- and people have been asking us If he travels to his home in Flori- “I consider everyone working to- everyone the ability to make a deci- nies had miscalculated its usage about it, and we can do it,” he said.

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OCTOBER 27 - NOVEMBER 2, 2014 CRAIN’S CLEVELAND BUSINESS 15 REAL ESTATE Cream rises to top in Tremont Area’s latest industrial rehab project at former Fairmont Creamery will open with full occupancy

By KATHY AMES CARR [email protected]

The $15 million Fairmont Cream- ery rehab represents one of Cleve- land’s latest creative reuses of an abandoned industrial building rich in history. The five-story brick structure — constructed in 1930 as a national distribution hub for dairy products — has been repurposed from its recent largely abandoned state into a 106,000-square-foot, mixed-used project featuring residential and commercial space, and parking. “Our building is a celebration of the industrial canvas we’re working from,” said Naomi Sabel, a founder of Sustainable Community Associ- ates, the project’s developer. The creamery rehab’s completion is targeted for November. Each of the six office spaces and 30 apartments are spoken for, illustrating the latest example of the pent-up demand for contemporary industrial housing and workspace in and around the city. The building overlooks an industrial valley in Tremont and provides dramatic views of the city skyline JANET CENTURY PHOTOS (TOP AND BOTTOM LEFT); and neighboring Ohio City. But the CONTRIBUTED PHOTOS (ABOVE) project also offers a different per- ABOVE LEFT: Naomi Sabel (left), Josh Rosen and Ben spective. Ezinga (not pictured) are the Fairmont Creamery The developers — Sabel, Josh project’s developers. LEFT: The rehab is expected to be Rosen and Ben Ezinga, all in their completed in November. ABOVE: The five-story structure mid-30s — view the facility not only was built in 1930 and was a national distribution hub for as a sustainable restoration project, dairy products. but as a potentially larger stimulus See CREAM, page 17 ON THE WEB: For a photo gallery of the Fairmont Creamery project, visit www.crainscleveland.com Developers are padding portfolios at rapid rate

properties — in the years before national trends. In this case, the icant figure, but are far below typi- Downtown market is in midst of an acquisition and after the Great Recession. stars have lined up to create the cal periods downtown. The transaction volume is note- most robust time in downtown The best example of that is the round that might outpace the early 1990s boom worthy. David Browning, managing Cleveland in my tenure here.” purchase of 1111 Superior Ave., the director of CBRE Group’s Cleveland Although there is a welter of multitenant office building that un- By STAN BULLARD board game, who wins and loses or office for the past 30 years, said the transactions, no one is gloating til last year housed Eaton Corp.’s [email protected] by how much will not be known for pace is quicker and involves more about the prices being paid, which headquarters, by Chicago-based a long time. However, in this case, it property types than the last really is the case in many other parts of American Landmark Properties. LeBron James. Johnny Manziel. may be years. big round of acquisition action. In the country, especially on the Alec Pacella, a specialist in real The Republican National Conven- More than $130 million went into the late 1980s and early 1990s, real coasts. estate investment properties and tion for the 2016 presidential con- more than a dozen deals for down- estate developers snapped up old managing partner of the NAI Daus test. hotels, commercial buildings and brokerage in Beachwood, estimates town Cleveland apartments, office Dollar-menu deals Amid those big-league develop- buildings, hotels and parking facili- parking lots to construct six down- the 28-story building sold for about ments, others played out this year: ties through Oct. 1 this year. The town office buildings. With the exception of the sales of $35 million, about half the $71 mil- the resurgence of acquisition action frenzy may not be over: Insiders ex- “This is happening broadly the Hampton Inn at 1460 East lion that Superior Cleveland LLC, in downtown Cleveland with build- pect more properties to trade by across the downtown market,” Ninth St. and the Residence Inn at an investor group that includes ings and sites selling at a pace rival- year’s end. The figure is all the more Browning said. “It’s just a great Colonial Marketplace, 527 Prospect Sovereign Partners of New York ing the first round of a Monopoly staggering because it played out af- time for our city. It’s the culmina- Ave., most of the deals are triggered City, said it paid for it in 2007. board game. ter years of just a few downtown tion of a lot of hard work that’s gone by potential property develop- The reason? American Landmark Like the classic property-based transactions — often distressed on downtown and favorable ments. The sale prices total a signif- See DEVELOPERS, page 18 20141027-NEWS--16-NAT-CCI-CL_-- 10/23/2014 2:28 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Brown Gibbons Lang expanding its offerings By STAN BULLARD type of professional, the middle- them with something,” Gibbons said was a big step. Realty agents are lic market or restructure the com- [email protected] market investment banker Brown in an interview at BGL’s new One compensated on a commission pany. Gibbons Lang & Co. Cleveland Center offices done in a structure, which is different from “We are not committed to As Warrensville Heights-based For BGL and Michael Gibbons, stark white design (think Progressive compensation for investment finding a transaction at the lowest Weston Inc. prepares its plans for the Cleveland-based founding part- Corp.’s Flo’s surroundings white). bankers who follow the Wall Street cost. We are committed to doing installing apartments in parts of the ner of the company that also has of- “Now we can.” pattern: They earn a salary and a what’s best,” for the property or recently purchased Standard Build- fices in Chicago, Newport Beach, However, that is not to say that bonus based on firm profits. But company, Gibbons said. If a devel- ing in downtown Cleveland, the real San Antonio and Tampa, it is a Gibbons and BGL have not done Gibbons said it is worth the effort. oper is going to suddenly do a deal estate ownership and management chance to put their growing nation- some interesting, and substantial, “Often our assignments may lead with his brother-in-law, we’re out firm has added a surprising mem- al real estate advisory practice, realty work along the way. to a sale of a property or a sale- of there.” ber to its development team. which typically works on huge deals BGL helped both Beachwood- leaseback,” Gibbons said. Besides the accountants, archi- out of town, to work a few blocks based DDR Corp. and Richmond “We watched significant com- tects and lawyers on every multimil- from their Cleveland office. Heights-based Associated Estates missions being earned for less work ‘We don’t want to be Realty One’ lion-dollar real estate development “For years, developers whose fa- Realty Corp. as an adviser before than we were doing. We were leav- In Weston’s case, it has real estate project, Weston has brought in for thers I may have worked with have they went public in the 1990s. Gib- ing money on the table.” and construction expertise, but the Standard Building a different called and asked if we can help bons also serves as a board member In a nutshell, the real estate advi- faces a complicated proposition at Associated Estates. with a project such as the Standard Gibbons’ interest in real estate Building. dates more than 30 years when he “For years, developers Such office-to-apartment conver- bought duplex rentals as invest- whose fathers I may have sions often involve multiple layers ments and later moved into apart- worked with have called of financing from different sources, Every project needs a ments as a sideline to his financial more equity than in the past and se- career. and asked if we can help curing state and federal historic tax In the early days he met a lot of them with something. Now credits. ƐŽůŝĚĨŽƵŶĚĂƟŽŶ͘ real estate developers as he traveled we can.” “These are very complicated cap- the countryside in his first job selling ital projects,” Gibbons said. “We’re – Michael Gibbons industrial bonds for real estate trans- excited about the Standard Build- Our team of experts strategically aligns founding partner, actions. The offspring of those devel- Brown Gibbons Lang & Co. ing. It’s our first project of this type ŽƵƌƐĞƌǀŝĐĞƐĂŶĚƌĞůĂƟŽŶƐŚŝƉƐƚŽŚĞůƉǇŽƵ opers are the ones BGL now hopes to in our hometown.” in all aspects of your business including risk advise. Ed Asher, a member of the Asher analysis, succession planning, internal controls, “I like the stability of cash flow in sory business amounts to applying family that owns Weston, said it en- real estate,” Gibbons said, noting he the same analysis and financial gaged BGL to seek equity invest- ĞŵƉůŽǇĞĞďĞŶĞĮƚƐĂŶĚƐƉĞĐŝĂůƚǇƐŽŌǁĂƌĞĂƉƉůŝĐĂƟŽŶƐ͘ has owned “a good bit” of real estate structuring skills that investment ments on its behalf for the Standard although he would not disclose de- bankers use to increase profits or Building. tails of his holdings. reduce losses at businesses, recapi- “They were referred to us by Let us help you talize or sell them. some folks who had positive experi- “If you have an apartment build- ences with them,” Asher said. He build yours. What’s different ing, you can benefit from the same added that beyond the tax credits, BGL in 2008 started building a real things we do for a business,” Gib- the project may also entail finding estate advisory practice and it re- bons said as an example. some junior debt as well as the typ- John K. Forbes, CPA, PFS, CCIFP, CCA cently expanded beyond analysts to “You could not find the sources ical first mortgage. WƌŝŶĐŝƉĂůΘŝƌĞĐƚŽƌ͕,tŽŶƐƚƌƵĐƟŽŶ'ƌŽƵƉ include asset management and even of capital on a national and inter- Anthony Delfre, managing direc- [email protected] | 440.951.1777 real estate agents who market prop- national basis we deal with regu- tor for BGL’s real estate advisory erties. BGL now has a total of 10 such larly.” practice, said BGL adds synergies to Brandon R. Miller, CPA Gibbons also rattles off a series of the typical real estate deal. For ex- Principal & Director, Business Development agents in California, Florida and business analyses the firm may un- ample, a developer might raise eq- Cleveland | Columbus | Mentor [email protected] | 216.378.7224 Texas, with one here. Adding agents over the past year dertake, such as studying the net uity with some asset sales as well as present value of the property, future tapping the capital markets for income and comparing different in- funds. vestments. For the time being, Gibbons de- David Browning, managing di- scribes the real estate practice as a rector of CBRE Group’s Cleveland “pretty small” part of the firm’s rev- Exposure • Expertise • Results office, said realty brokerages and enues. service providers typically deal with However, as developers need single property transactions at the more help raising cash than in the local level. past, he said, BGL expects to grow Investment bankers operate in the practice at a high rate. capital markets and execute trans- Although BGL is adding real es- Creating and Preserving Wealth for Our Clients, actions for real estate developers tate financial experts its focus re- and companies based on their bal- mains on its broad mergers and ac- One Transaction at a Time ance sheets and advise on whether quisitions practice, saying, “We to use debt, raise money in the pub- don’t want to be Realty One.” Below is a Sampling of Our Recent Closings

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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17

THE BREAKDOWN Apartments Tremont Athletic Club Kelly-Buck Co. Abundant natural light characterizes Nick White’s plan for a fitness center The engineering and consulting firm CREAM Here’s a closer look at the each space, with some offering a in Tremont emerged about four years didn’t have plans to uproot from its apartments, and four of the six layered panoramic view of railroad ago. White, a fitness buff and former offices at Lemko Hall — a former continued from page 15 businesses that are moving later this tracks, treetops, downtown skyline and commercial litigator for Cleveland- Eastern European social hall and for an underutilized pocket of the year into the building (two companies the West Side Market tower, just 0.6 based BakerHostetler, felt his neighbor- saloon in Tremont. But when the land- Tremont neighborhood. Located have yet to formerly announce their miles away. hood lacked the type of full-scale gym lord announced last summer he was on Willey Avenue, this area be- plans, while other potential tenants Each of the 30 apartments has a that would appeal to a large number of selling the building’s condos, the tween Tremont and Ohio City is previously discussed for the spaces unique design and layout, and square his fellow residents in Tremont and company decided to look for new digs. teeming with potential for further altered plans): footage ranges between 400 to 1,800 “We had been a subcontractor for the economic development. neighboring Ohio City. When he learned square feet. Fairmont Creamery developers’ East Col- “This is a great transitional of the Fairmont Creamery project, he Twist Creative Inc. The unit prices begin at $700 a lege Street project in Oberlin,” said pres- space between Ohio City and seized the opportunity. The move from Ohio City to Tremont month for a studio and top out at “The creamery is the only feasible lo- ident Michael Lyden, referring to Sustain- Tremont,” Sabel said. “We’re will be somewhat bittersweet for the $1,850 for a two-bedroom penthouse. cation around. It has open space and able Community Associates’ nationally hoping this project spurs addi- Twist Creative staff. The agency has Developers aimed to preserve as much ample parking,” White said. Further, the recognized rehab of a car dealership tional investment along this been entrenched for 12 years in the ar- of the building’s historic character as 14,000-square-foot Tremont Athletic into a blended eco-friendly development. area.” tisan neighborhood, and even created possible, exposing elements such as Club will be able to offer sunrise yoga “I ran into Josh on the street while I To close on this brownfield the design and branding for Ohio City the chiseled yellow brick and support on the rooftop (weather permitting) was jogging in Tremont one night and project, the developers cobbled and the West Side Market centennial. columns as thick as trees, while beyond its core offerings, which will told him we wanted to move,” Lyden together several layers of financ- “The Ohio City space feels like our blending in upscale features such as include group classes, free weights, said. Kelly-Buck expects to relocate its ing, including federal New Mar- house,” said Michael Ozan, president granite countertops and stainless steel strength training and cardio equipment. four employees later this year into a kets Tax Credits, state and feder- and chief creative officer. appliances. White plans to open the gym in early 1,100-square-foot space. Southern-fac- al historic preservation tax But the new 3,800-square-foot, “This building is a reminder that December, and offer annual ing windows will be especially pleasing credits, a JobsOhio grant, city va- one-floor space at Fairmont Creamery people make stuff in this city, and we memberships to businesses and sur- in winter, Lyden said. cant property initiative funds, enables the agency to work more want to expose the building’s original rounding residents. “I give the developers a lot of credit,” about $1.2 million in private eq- efficiently. “We were on four floors in features, rather than hide them,” Rosen “I can’t wait,” he said. “The creamery he said. “They took this dark and uity investment and a Goldman Ohio City,” Ozan said. said. was once a linchpin to Cleveland, and scary-looking building and created this Sachs construction loan. “This allows us to be more creative, Ceiling heights of 13 feet to 18 feet now we’ll be a linchpin to the community.” beautiful multifunctional space.” “We were working up until plus we outgrew the former location,” naturally enlarge each unit, as do sky- New Year’s Eve, with 50 people which was 2,500 square feet, Ozan said. lights in spare bedrooms. The 3,500- Good to Go Café on phone calls to close this deal,” The space is separated into zones for square-foot rooftop deck offers a place Rosen said. client meetings, creative work and con- to lounge and garden. An offshoot of Anna Harouvis’ popular café in downtown Cleveland’s IMG ferences. Sliding office barn doors, At the building’s front entrance, a Building, this 400-square-foot healthy foods spot will serve an essential role in the paned store glass and natural light facili- pocket of picnic seating and raised Fairmont Creamery building. It is the only onsite café, so building occupants likely tate creativity. “And we’ll be able to offer beds for more gardening create will be core customers. these amazing benefits,” he said. additional community gathering space. “This is a grab-and-go space, offering all GMO (genetically modified organism)-free “Every employee will have a The Fairmont Creamery, in Rosen’s items,” Harouvis said. “We’ll have our cold-pressed juices, cold-pressed membership to the gym, we’ll be able opinion, is its own neighborhood. coffees, quinoa bowls and a small retail space where any local producer who to have meetings outside on the “We wanted to create a space where makes GMO-free products can sell them at our café.” rooftop, and we’ll save a ton of money you can go to the gym, grab a solid This new concept, which is targeting a November opening, will offer something on parking. Our employees can come to-go lunch or coffee, socialize, live and her flagship that has been opened since 2001 does not — bison burgers and in at 5 a.m., go up to the rooftop and work,” he said. other dishes made with bison. do some yoga, grab a juice from Anna Each of the apartments has been “I realize not everyone eats the raw, vegan diet I do,” she said. “And with the (Harouvis’ Good to Go Café), then pop rented, and a “huge” waiting list Tremont Athletic Club there, people are going to want a healthier animal protein into work,” Ozan said. accompanies the units, Rosen said. option.”

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18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 DEVELOPERS continued from page 15 the Leader Building, 530 Superior is undertaking the challenge and Ave., which it bought for $5.4 mil- risk of filling a half-empty sky- lion in August. However, that scraper. means New York City-based Carlyle Such transactions show the mar- Group reaped just $1.4 million ket has reawakened and properties more than it paid for the building in are fetching more than the pennies 2004, even with limited success in on the dollar that marked the last hiking its occupancy. few years. However, it is not typical investor activity, Pacella said. Developing the ‘undevelopable’ “This year certainly has good deal velocity but pales when compared to Doug Price, K&D Group CEO, the real go-go years,” Pacella said of said the price K&D paid for Leader the volume of downtown sales. reflects the market’s evolution. “These have a different texture be- “People realize now there is value cause they are based on the upside in these buildings,” Price said. “The of repositioning or development. days of getting them for next to The big-ticket deals just aren’t there. nothing are gone.” K&D also bought (200 Public Square) alone sold for the building to control it for future $140 million, North Point Tower was redevelopment. sold for $114 million. One Cleveland Also increasing the price devel- Center sold for $86 million. This is opers must pay to play is that the kind of like going to McDonald’s but next crop of apartments will mostly only ordering off the dollar menu. go into buildings that still have of- This is like buying a stock at a low fice tenants in them, and in some other second-tier downtowns also helped answer the concerns avenues or even East Ninth Street price with a hope of a higher return.” cases they may remain in part of the around the country. about security and cleanliness of will prove how palpable the revital- However, real estate investors and properties. That is a sea change Bill West, chairman of Ostendorf- downtown,” West said. “It’s not one ization it is — the development na- developers deploying assets to buy from buying an empty building Morris Co., said changing work pat- thing but all these things.” ture of most recent deals distin- downtown properties can be market where the only occupants for years terns and lifestyle preferences are guishes them from coupon-clipper were roosting pigeons. investments. — and community — changing. setting up the transformation. A long time coming Most of the office sales took place Tom Yablonsky, executive vice “It’s a composite of a whole lot of Browning said he worries about among properties with less banka- president of Downtown Cleveland things,” West said. “People are us- Although it seemed sudden, the developers vying for a limited num- bility than 1111 Superior. They are Alliance and executive director of ing less office space and sharing changes were a long time coming. ber of state historic preservation tax reawakening the city’s long-suffer- the Historic Gateway and Ware- more space. They’re even sharing Terry Coyne, an executive manag- credits will create a backlog of pro- ing, huge inventory of older, low- house District local development cubicles. The old buildings such as ing director at Newmark Grubb jects awaiting funding. Office and rent office properties that normally corporations, has spent a career (920 Euclid Ave.) are filled with pri- Knight Frank, sees it as a case of apartment rents are up, but they’re do not change hands. They histori- persuading investors to undertake vate offices that are too expensive catching up. still too low to garner development cally garnered little new investment projects at dilapidated office build- to operate. At the same time, you “The national trend toward ur- financing without subsidies. because office rents in lesser prop- ings, primarily converting them to have young people and empty ban living has been going on for a “Don’t think this is all over,” erties are so low. Four of the office apartments. nesters who do not want to live in few years,” Coyne said. “It has final- Browning said. “There are going to sales were acquisitions by apart- “We’ve had sales of a lot of prop- single-family homes and cut the ly come to Cleveland. And when it be winners and losers.” ment developers who plan to con- erties this year that people viewed grass every week. They want to be came, it came quickly.” He noted These sales are not an end, but vert at least part of the structure to as dormant or undevelopable,” near the action.” that each property transfer helps perhaps a beginning of a more dy- apartments to capitalize on the Yablonsky said. “It’s a signal of how In the meantime, developers can the situation because it is a new in- namic downtown realty market. strong demand for downtown living hot downtown Cleveland is.” benefit from low interest rates and vestment, and a new price for com- “You have a downtown that has and rising apartment rents. The transformation of old office may use historic tax credits to cre- parisons, in town. reached a tipping point,” Yablonsky That means K&D Group of buildings to apartments is part of ate an alternative to high-cost con- For as much as has been accom- said. “You have (developers) who are Willoughby, for example, needs to bigger trends that are starting to re- struction projects. plished in downtown Cleveland — looking at not just one building but spend millions to reposition parts of shape downtown Cleveland and “Downtown Cleveland Alliance a walk on lower Euclid or Prospect the next and the next and the next.”

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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 Peak Resorts seeks to raise $100M Missouri company that owns local ski lodges refiles initial public offering

By SCOTT SUTTELL [email protected]

The Missouri company that owns the Alpine Valley, Boston Mills and Brandywine ski resorts in Northeast Ohio has refiled for an initial public offering to raise up to $100 million. Peak Resorts Inc. of Wildwood, Mo., near St. Louis, filed a registra- Alpine Valley in Chesterland drew 36,000 visits in 2013-2014. tion statement with the Securities and Exchange Commission on $105.2 million, up 5.5% from $99.7 Columbus, generated $7.8 million Monday, Oct. 20. The company in million in fiscal 2013. Combined, its in revenue and drew 180,000 visits. April 2011 filed with the SEC for an resorts generated about 1.8 million The company said in the filing IPO of up to $103 million, but it for- visits in the 2013/2014 ski season, that the U.S. ski industry “is highly mally withdrew that offering in late an increase of 4% from the prior ski fragmented, with less than 13% of September in a letter to the SEC. season, according to the filing. the 470 ski resorts being owned by STAN BULLARD In Monday’s filing, Peak Resorts The filing broke down revenues companies with four or more ski re- One of several buildings on the site of the proposed Breakwater Bluffs said it applied to list its stock on the and visits for each resort. Here are sorts. We believe that our proven apartments in Cleveland peeks over a weed-covered fence on the site. NASDAQ Global Market under the the numbers for Peak Resorts’ four ability to efficiently operate multi- symbol “SKIS.” The company did Ohio properties: ple resorts and our track record of not provide a range for the IPO’s ■ Alpine Valley, in Chesterland, successful acquisitions have creat- price per share. Peak Resorts said it generated $1.3 million in revenue ed our reputation in the market- NRP Group affiliate buys plans to use about $80 million in and drew 36,000 visits. place as a preferred buyer. “We believe that our extensive proceeds from the IPO to repay ■ Boston Mills, in Brecksville, gen- experience in acquiring ski resorts debt. Other funds will be used to erated $4.5 million in revenue and buy land and for working capital and investing in snowmaking, lifts drew 117,500 visits. spots for apartments and general corporate purposes. and other skier services, as well as ■ Peak Resorts operates 13 ski re- Brandywine, also in Brecksville, the synergies we create by operat- By STAN BULLARD houses. The developer also secured sorts primarily in the Northeast and generated $4.8 million in revenue ing multiple resorts, drives in- [email protected] a rezoning from industrial to allow Midwest, 12 of which are company- and drew 132,100 visits. creased revenues and profitability,” apartments on the property last owned. Revenue in fiscal 2014 was ■ Mad River, in Zanesfield, near the Peak Resorts filing stated. An affiliate of apartment develop- summer. er NRP Group has purchased prop- Part of the site faces Edgewater erties in Cleveland’s Detroit-Shore- Park and adjoins the pedestrian way neighborhood that form the tunnel underneath train tracks to site of its proposed Breakwater reach the lakefront. The West 58th Cleveland Bluffs apartment complex overlook- Street end of the site faces down- 600 Superior Ave. East Suite 1600 ing Lake Erie and downtown Cleve- town’s skyline. Cleveland, Ohio 44114 land. Land records show Breakwater Cuyahoga County land records Bluffs LLC paid $1.38 million to Phone: 216.830.6830 Fax: 216.830.6807 show that through Breakwater Foundry Sales & Equipment for the Bluffs LLC, the Garfield Heights- largest property with multiple based multifamily developer on buildings at 1201 W. 65th St. Deeds Oct. 8 paid a total of $3 million for also show Breakwater paid $875,000 properties that give it control of to Pck & Njk Corp. for 1240 W. 58th much of the block on the north side St. and $775,000 to Breakwater of Breakwater Avenue between Properties Inc. for a building at 1230 Collective Experience. West 58th Street and West 65th W. 58th St. The site contains weed- Street. covered one-time parking lots and In an email, NRP spokeswoman multiple industrial buildings, in- Collaborative Culture. Diane Richey declined comment on cluding some that NRP has said it the acquisitions and the developer’s plans to at least initially maintain. next steps. A huge building on the north end Creative Solutions. Plans that NRP executives shep- of West 58th Street that once served herded through Cleveland Planning as a Westinghouse Electric Corp. Commission and design review warehouse — and gives its name to boards earlier this year call for con- the sharp Shoreway curve adjoining struction of 248 suites in a series of it — was not included in the trans- three-story buildings and town- fers and remains for sale. Beyond Legal Advice… Real Business Solutions

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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

ADVISER KEVIN PATRICK MURPHY Marijuana-based investing can have highs, lows

As of this month, 35 states and and regulated with differing state borrow at interest rates often as regulations. the District of Columbia permit and federal laws. high as 18% to 20%. some form of marijuana consump- And marijuana use has been illegal For individuals and businesses ■ Have a backup plan — if the ten- tion for medical or adult use pur- under federal law since 1970, when with cash to invest, a tolerance for ant goes out of business, the facility poses. Congress passed the Controlled Sub- greater risk and a desire for higher- will need to be converted to accom- Given the increasing number of stances Act. Currently, there is little than-normal returns, here a few modate another use. Cannabis cul- states where marijuana is legalized, concern of federal intervention in pointers for real estate investments tivation facilities require a tremen- decriminalized or on the ballot this those states that permit some form of in the cannabis industry: dous amount of power and security, November, it’s entirely possible marijuana consumption. as well as extremely high ceilings ■ Talk to established business own- that there will be potential opportu- President Obama has publicly and a large operating floor, so target ers and industry consultants to be- nities in Ohio within the next few stated that it is not a federal priori- replacement tenants with similar come more familiar with specific years. ty to prosecute cannabis business- requirements. challenges and opportunities. In Colorado, where cannabis is es that operate in accordance with ■ legal for adults older than the age of state law and adhere to the federal Keep in mind that a replacement ■ Target geographic regions where 21, cannabis sales from January guidelines established by the De- tenant would most likely be paying there are already successful through May of 2014 brought the significantly less rent than a tenant partment of Justice. cannabis-based operations. West- state about $23.6 million in revenue operating a cannabis-based busi- In exchange for the inherent risks ern states such as Colorado, Neva- from taxes, licenses and fees. ness. that are present in the cannabis in- da and Washington have an estab- Experts in the industry project dustry comes the potential of lished infrastructure that is ■ Always involve experienced legal that the national cannabis market Murphy is a partner in the tremendous financial returns. favorable to cannabis-based busi- counsel to assist with investment will exceed $10 billion by 2018. It’s corporate transactions group Landlords routinely charge rents nesses. advice and negotiation of the legal not difficult to recognize that the and real estate practice group as high as four times the average documents. Since this is a relatively regulated cannabis industry is a of Cleveland-based Walter | market value and dictate highly fa- ■ Perform due diligence to make new industry, there are very few at- new niche for real estate specialists. Haverfield LLP. vorable lease terms. sure the tenant has a proven, credi- torneys in Ohio with experience ne- Simply take a look at what’s hap- Although traditional forms of fi- ble track record in the business. gotiating these unique transactions. pening in western states like Col- That’s not to say the opportuni- nancing, such as loans from the na- orado, Washington and Nevada to tion’s largest banks, are not readily ■ ties are not without risks and signif- Negotiate contract terms that Your attorney must understand see that the demand for property available for most cannabis busi- icant challenges. Remember that cover the unexpected. This is still a the unique and inherent risks in or- for cannabis-based operations is nesses, alternative financing is this is still an industry in its infancy nascent industry subject to market der to provide smart legal and busi- readily available if one is willing to staggering. and one that is highly scrutinized fluctuations and rapidly changing ness advice.

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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 RNC 2016 TALES FROM TWO CITIES Convention can be boost for some bottom lines, but businesses are best to focus efforts early FOTOLIA (2) TAMPA MINNEAPOLIS-ST. PAUL When the Republican National Convention convened in Tampa, Fla., during the last pres- Minneapolis and St. Paul, Minn., made history in 2008 for it being the first time two cities idential election, area firms did an estimated $404 million in business by housing, hosting, had ever hosted the Republican National Convention. feeding, shuttling and connecting the more than 50,000 attendees from around the world. Home to 20 Fortune 500 companies, this dual-city region recruited 10,000 volunteers and Now, Northeast Ohio businesses will have the same chance to capitalize when the Repub- rolled out the red carpet to 45,000 visitors who were treated to the sights, sounds and culture lican convention comes to Cleveland. of Minneapolis-St. Paul. (Organizers worked hard to drop the moniker “Twin Cities” leading “It’s a shot in the arm,” said Greater Tampa Chamber of Commerce president and CEO Bob up to and during the convention.) Rohrlack. The gargantuan effort was funded by the nonpartisan and nonprofit Minneapolis St. Paul The 2012 convention generated more than $214 million in direct spending in Tampa Bay, Host Committee, which surpassed its fundraising goal of $58 million. A fundraising surplus according to a University of Tampa economic impact study. of almost $7 million was donated to three foundations after the event. A majority — about 59% — of that spending went to infrastructure improvements, includ- The event netted the region $170 million in new spending, including $153 million directly ing telecommunications upgrades, the study showed. Security expenditures represented and more than $15 million indirectly, according to an impact report prepared by the host nearly 18% of direct spending, and another nearly 11% went to convention activities and ad- committee following the four-day convention. ministration. More than 8% of directly spent dollars went to hotels and accommodations. The report detailed that major new revenue was generated through security, hotels and ac- Overall, the Tampa Bay area saw its taxable sales increase by $363 million during the month commodations, retail and services, host committee activities and the convention complex. of the convention, an increase of 3.2% over the same time a year earlier, according to the Uni- In addition, significant money was collected through income, sales, lodging, entertainment versity of Tampa study. and gas taxes. But the effect was not uniformly positive across industries. Other significant impacts included technology and telecommunications, transportation, Indeed, the economic impact study showed that while some Tampa Bay area industries convention production and entertainment. saw their taxable sales numbers soar during the month of the convention, others were appar- There were about 2,800 jobs and $100 million in wages that came to the area in conjunc- ently hurt by the RNC’s arrival. tion with the convention. A total of 12,000 hotel rooms were booked in 100 hotels in Min- Seafood dealers and pawn shops were among the biggest winners. Their taxable sales more neapolis, St. Paul, Bloomington and the surrounding suburbs, and on average, convention than doubled in August 2012 compared to the same month a year earlier. But bars and restau- visitors stayed in the area for six days and spent $1,600 on lodging, food, transportation and rants that serve alcohol saw their sales dip (down 14%) as downtown employees worked from activities. home during the convention, according to the study. “The businesses that did well were the special event and destination restaurants and ho- What gave companies an edge was their participation in the convention planning network, tels that were hosting private parties,” said Ellen Muller, economic development manager for said Rohrlack. the city of St. Paul. “People loved it when they came in because it’s a very old city and very “Businesses that ... put a sign up and say, ‘We’re open,’ are going to be very disappointed,” European feeling, and we have a lot of historic buildings, yet we are a city of neighborhoods.” he said. “If you want to benefit, register, get involved in the committee network.” Fifteen-thousand national and international media came to the area and earned Min- Cleveland can expect positive effects of hosting the convention that extend beyond the cash neapolis-St. Paul more than 10 billion media impressions — the equivalent of a $407 million register, according to Rohrlack. advertising campaign or 150 Super Bowl ads. (Ironically, Minneapolis-St. Paul will host the “You can say, ‘We did this. We hosted something second only to the Olympics (in scope). Super Bowl in 2016.) We‘re that kind of town,’ ” he said. — Stephanie Czekalinski “The convention helped put St. Paul on the map,” Muller said. — Chrissy Kadleck 20141027-NEWS--22-NAT-CCI-CL_-- 10/23/2014 12:14 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 Event doesn’t always serve up opportunity Restaurants sometimes can suffer from ‘crowding-out effect’ By KATHY AMES CARR earlier, according to a business im- committee when they first came in, [email protected] pact study conducted in 2013 by Bri- so we’ve already formed some rela- an Kench, chairman of the econom- tionships,” said Kuhn, owner of It would seem that with 40,000 ics department at the University of Driftwood Restaurant Group. delegates, journalists, party officials Tampa. Some area restaurants re- While the anticipated 1,200 con- and other visitors expected in Cleve- ported much higher losses, accord- vention-related activities represent a land during the Republican Nation- ing to media reports. great opportunity for local restau- al Convention, restaurants and bars Matheson — who studies the eco- rants to grab some candy from the should expect a windfall in sales. nomic impact of major sporting and piñata, downtown restaurants and But history suggests otherwise. In- other events in cities — references their respective neighborhood lead- deed, the real effect may be quite the other conventions as similar illustra- ers should be working cohesively to opposite. tions of that lackluster outlook. appropriate the right space for each Armed military and police patrol “Two of the primary interstates event, Kuhn said. streets. Major thoroughfares close. were shut down in Boston during the “So even restaurants that don’t Convention-goers rarely leave the Democratic National Convention in have the best spaces can piggyback venues, and eat onsite. Meanwhile, 2004. Attendance was down 20% at on what their neighborhood or dis- downtown office workers and Broadway shows in New York City trict is doing,” and benefit from restaurant regulars stay away. during that year’s RNC. Traffic on spillover activity, he said. “I would not be particularly opti- the opening day of the 2008 Democ- Securing parking will be another mistic,” said Victor Matheson, an ratic convention in Denver was issue. Jonathan Gross, chief financial economics professor at Holy Cross light,” Matheson said. officer of Red Restaurant Group, said in Massachusetts. “The majority of he expects Red, which is near the the restaurants and bars in the East Fourth Street restaurant district, downtown area will be negatively Setting up for a repeat to be located within a tighter securi- impacted, primarily because the in- A similar scenario no doubt could ty zone that may block access to credibly tight security makes it a real crimp the downtown dining sector. parking lots. If that’s the case, he said hassle to get anywhere near the con- But local restaurant owners also the restaurant will scout additional vention. And the convention-goers have the opportunity to either miti- parking for customers, and inform are on such a tight schedule, it does- gate their anticipated losses or even them through social media of those n’t leave time for them to get out and capitalize on the event with proper alternative parking solutions. discover the area.” planning, those in the industry say. But, “it’s still unclear at this point” This “crowding-out effect” dis- “Restaurants that are hosting spe- as to how specifically Red and its rupts normal patterns at businesses cial events tied to the convention will neighboring eateries will be affected surrounding the convention. benefit,” Matheson acknowledged. overall, he said. Restaurants on East Fourth Street, Political groups are currently ex- Dominic Fanelli, owner of Choco- the Gateway District and others or- ploring restaurant spaces for din- late Bar, has some early thoughts biting the convention’s primary ners, concerts and cocktail parties. about how to attract new and exist- venue, Quicken Loans Arena, will Restaurateur Scott Kuhn is making ing customers. Free shoe shines, likely be particularly impacted. sure those groups are aware that his politician book signings and even a During the 2012 Republican Na- downtown eateries — Hodge’s, celebrity politician bartending night tional Convention in Tampa, sales at Cibreo and Bin 216 — can accom- come to mind. bars and restaurants were down 14% modate their needs, he said. But more importantly, he hopes to compared with the like period a year “We catered the (site selection) see coordinated communication be- CONTRIBUTED PHOTO tween the city and businesses about which streets are closed and which Rick Drury (pictured) alternative routes are available in or- Precinct Pizza SM der to attract business. Tampa, Fla. “The city doesn’t always let busi- From Rick Drury’s perspective, downtown Tampa during the 2012 nesses know when they’re shutting Republican National Convention looked like Beirut. Six-foot metal gates barri- down roads, and the police don’t al- caded the restaurants and other businesses surrounding the Tampa Bay ways know how to most efficiently Times Forum, where the convention was held. Streets were shut down. Cus- redirect traffic,” Fanelli said, refer- tomers and downtown office workers stayed away during the four-day event. encing his experience during other “I couldn’t really blame them because they would’ve seen tanks and guys large downtown events. “People will carrying M-16s if they would’ve tried to come in to eat during that week,” want to be downtown to experience A New Hotel said Drury, co-owner of Precinct Pizza. “No one wants to deal with tear gas this vibe.” launches during protests. I lost half my business. It was terrible for the Landscape restaurants.” The big picture The only business activity he experienced — which he said saved his business from a complete sales loss during that week — were supporters of Even if restaurants’ sales numbers former Republican congressman Ron Paul. They walked out of the nearby deflate during the four-day event, convention in protest of an RNC ruling that weakened their delegate count some say the bigger economic pic- and effectively stopped their state — Maine — from submitting Paul’s name ture leading up to summer 2016 for the presidential nomination. points to a boon for the hospitality “Thank goodness they crowded in. Otherwise, I would’ve been down 90% industry. in business,” Drury said. “I couldn’t deliver the pizzas, and my dine-in “Look at all the construction, de- business suffered because of the road closures.” velopment and streetscape projects. I’m seeing the city do things I’ve never seen before,” Gross said. Mark Ferguson Cuyahoga County officials Ferg’s Sports Bar and Grill With the increase in meetings and agreed last month that the county conventions drawing more visitors into will clear the Cleveland Convention St. Petersburg, Fla. downtown Cleveland, the hotel scene is Center and the Global Center for Even across town in St. Petersburg, at which various events were held busy growing to meet demand. Health Innovation for up to six including a kickoff party at Tropicana Field, restaurants experienced a similar scenario, said Mark Ferguson, owner of Ferg’s Sports Bar and Grill. Six new hotels are under construction in weeks for convention preparations, “We were down 50%,” said Ferguson, whose bar is located just a couple the downtown core, including the new according to previous Crain’s re- 600-room Hilton Cleveland Downtown. ports. Major media networks and hundred feet from Tropicana Field. “Restaurants within a one-mile perimeter curious visitors alike will flood of the convention said they did terribly.” By 2016, downtown Cleveland will offer downtown in the weeks leading up Patrons avoided the area because of heavy police presence, protests and nearly 5,000 hotel rooms which will help to to the convention. road closures, he said. attract even more meetings to Cleveland. “And imagine if the Cleveland Ferguson’s advice to Cleveland restaurants that will face similar Cavaliers go to the NBA Finals that circumstances? year,” Gross said. “I’m looking at the “Tell locals through social media that you’re open and to please come Join in at This isCLEveland.com next two years and the time leading down and patronize your restaurant,” he said. “Tell them how to get into your up to the convention as a plus-plus restaurant if certain roads are closed, offer to pay for their parking and offer #This isCLE for restaurants and bars, versus fo- really good specials. Anything helps.” cusing on just the impact of a few — Kathy Ames Carr days.” 20141027-NEWS--23-NAT-CCI-CL_-- 10/23/2014 2:12 PM Page 1

OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23

mer, we went to Paris and London.” land-based Hodgson Events, an event marketing and management Rental rates will go through roof Seizing the opportunity company. “We don’t have nearly Airbnb.com has 209 properties enough places to rent on Airbnb.” listed for rent in Cleveland, ranging Brahler and Scheve say that it’s By LEE CHILCOTE repair person is on call 24/7 to address convention, but he was only able to from one bedroom in a West Side necessary for property owners to de- any maintenance issues that arise. [email protected] rent out about 10 of them. Most home for $55 per night to a house in velop a good lease, make sure they If recent history is any indication, were larger properties that fetched Ohio City for $1,000 a night. By way have the right insurance coverage Michele Sommerfelt, a preschool Brahler may be right. Andrew Hud- $5,000 to $10,000 per week. of contrast, the site lists 561 proper- and require a hefty security deposit. teacher who owns a single-family son, a marketer who is based in Homeowners who have been ties for rent in Minneapolis and There may also be some demand home in the Detroit Shoreway Denver, rented his one-bedroom through the experience know that it more than 1,000 in Seattle. for office rentals when the RNC con- neighborhood of Cleveland, rents condo for $3,500 per week during can be a hassle. For example, Shak- In other words, the so-called “shar- vention rolls around. It’s rumored out her one-bedroom, third-floor the 2008 DNC convention. “It was a er Heights residents Laura and Brad ing economy” is growing in Cleveland, that some downtown companies will apartment to students. However, 10-minute walk to the Pepsi Center, Wheeler rented their house to ac- yet it’s still lagging behind many oth- close up shop for a week or more and when the Republican National Con- and they didn’t need a parking tress Jennifer Garner and her fami- er cities. That may present an oppor- rent out their offices, yet it’s a bit ear- vention comes to town in 2016, she space,” he says of the transaction, ly when they came into town to film tunity for savvy property owners to get ly to determine the level of demand. is considering asking her tenant to which he brokered through a friend. “Draft Day.” The family of four out in front of the demand curve for Positively Cleveland, the organiza- move out for the entire month. Yet others say the stories of a moved to a furnished apartment in rentals during the convention. tion that will serve as a clearinghouse That’s because Sommerfelt and her modern-day gold rush are a bit ex- Beachwood for seven weeks. “There’s absolutely going to be a for hotel inquiries, does not anticipate husband Rob believe they might be aggerated. Matthew Tringali, presi- “We told the kids we’d take a re- market (for individual property becoming involved in office or indi- able to rent the room for a much high- dent of Group 15 Real Estate in ally nice vacation with the money,” rentals), and I don’t think we’re going vidual property rentals. “We’ll let the er amount during the convention. “If I Charlotte, N.C., listed 70 to 80 prop- says Laura Wheeler, who adds that to fill it very well,” says Anya Ley- market take care of it,” says president earned $1,000, that would cover my erties for rent during the 2012 DNC she wouldn’t do it again. “This sum- bovich Hodgson, president of Cleve- and CEO Dave Gilbert. mortgage,” she says. “That’s what I’d look for to inconvenience myself.” Yet others might say Sommerfelt may actually be undervaluing the apartment and should set her sights higher. Katy Dix Brahler, an agent with Re/Max Real Estate Group — her MY BENESCH MY TEAM tagline is “Katy can, Katy will, Katy did … call Katy” — believes strong demand during the convention could push up single-family rental rates to $5,000 to $10,000 per week. “I think there will be demand,” she says, citing the fact there only will be 5,000 downtown hotel rooms available and some visitors may prefer staying in a house, condo or apartment. The surge in demand for weekly rentals may drive a veritable gold rush of sorts. Brahler recently listed a prominent home on West 54th Street along the Shoreway for $40,000 a week during convention time. Zillow lists this home as an “urban villa” that offers 4,000 square feet of living space, including three bedrooms, four-and-a- half baths, an elevator and views of downtown. Although no studies have been done, it’s clear that with only 5,000 downtown hotel rooms and the growth of sites like Airbnb, a sizable market will exist. “If I was assigned to a hotel in San- dusky and instead could rent in Lake- wood and take the bus instead of driving an hour each way, I’d choose convenience,” says David Sangree, president of Hotel & Leisure Advisors, We Are All in This Together! a consulting firm in Lakewood. Which properties qualify REPUBLICANS, DEMOCRATS AND INDEPENDENTS Before you start planning that Euro- pean vacation, however, it’s important are all excited to welcome the Republican National Convention to Cleveland in 2016. to know that not every property is suit- able. Re/Max agent Roger Scheve, who The bi-partisan professionals of Benesch’s Public Law Group have been giving our clients a strong voice lives in Ohio City, said many property owners may believe their houses sud- in legislative, regulatory and economic development matters for decades. Our team knows the players and denly are made of gold, but it’s likely issues and can help government work for you. that only a select number of homes will have the right set of amenities. “People need to have a nice house that’s close to transit and downtown,” he says, arguing that properties within walking distance or a five- to 10-minute transit ride will go first. “The rank and file majority of people probably don’t have a house that’s conducive.” Brahler agrees that homes in Shaker Heights or Ohio City close to the Red Line may rent easily, but Featured Attorneys (left-right): says there also may be demand for James M. Friedman, Martha J. Sweterlitsch, Melvin R. Daniel, Mark. D. Tucker, Peter N. Kirsanow, N. Victor Goodman, Robert A. Zimmerman, Rachel Winder* lakefront homes. Even if a property *Non-attorney is farther away from the downtown core, some may prefer the privacy and anonymity. She also argues that even modest homes in Tremont may command $5,000 to $7,000 per week because they’re close to downtown. These homes don’t have to be luxurious, she Cleveland • Columbus • Indianapolis • Philadelphia • Shanghai • White Plains • Wilmington • www.beneschlaw.com argues, just clean and well-maintained. The owner must also ensure that a 20141027-NEWS--24-NAT-CCI-CL_-- 10/23/2014 2:28 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

STORIES FROM TAMPA A MEDIA MARKETING For A Media Marketing based in Tampa, Fla., the 2012 Republican National Convention brought international attention, increased visibility and local recognition. The convention also had a positive effect on the firm’s bottom line, said Victoria Jorgensen, president of the 45-year-old company. “It gave a 10 percent boost to the company’s gross for the year,” Jorgensen said. A Media Marketing did video production for the 2012 convention, including the video that welcomed the more than 50,000 convention attendees to Tampa Bay. That piece later won a Telly Award, she said. The work with the RNC brought additional benefits, according to Jorgensen. “It pumped us up with local clients because we got a new level of respect,” she said. The company also benefited from the global attention the conference garners, she added. A Media Marketing was featured on several local and national news networks during the four-day convention. Jorgensen’s company landed the convention work after she registered on the Tampa Bay Host Committee’s online business services website and was invited to an information session and a meeting to get to know the organizers, she said. “One of the host committee representatives called a few days later to request a video production quote after discovering the company also provided that service,” Jorgensen wrote in an email. Jorgensen submitted a proposal and A Media Marketing became one of two video firms chosen to provide production services. Jorgensen said that the host committee was organized and easy to work with and the bid process was fair. “I’m not a Republican, but they in no way let any politics interfere with who they chose,” she said. “The host committee was wonderful to work with.” While the convention does provide opportunities to local businesses, pursuing convention business isn’t without risk. Lots of businesses pursued convention-related work, said Jorgensen. Some “spent a lot of money, and it didn’t work out,” she said. “Some even lost their businesses.” Jorgensen recommends that Cleveland firms hoping to capitalize on the Republican National Convention in 2016 get involved early with the planning committee. “If you say, ‘Hey, I’m going to put up a stand and make money,’ you’re not likely to succeed,” she said. Her advice to marketing companies interested in Cleveland 2016: “Look at (work done for) previous conventions and try to build on that.” — Stephanie Czekalinski

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MJM ELECTRIC INC. Fifty employees of MJM Electric Inc. worked for eight weeks to set up the electrical system that provided voice, data, video and power connections at the 2012 Republican National Convention in Tampa Bay. Then those same 50 workers spent three more weeks tearing down. “We hired an extra 30 (workers) for the convention,” said Mark Mazur, owner and president of the 28-year-old union electrical contractor. Those additional workers “got a really good job with a lot of overtime for two months,” he said. The convention was good for those workers, and it was good for MJM, which PANELIST PANELIST PANELIST normally employs about 100 full-time workers. The company did about $3 million Teresa McFarland Bob Rohrlack Joe Roman of work for the convention, according to Mazur. “For a $15 million company that’s Founder, President and CEO, President and CEO, a 20 percent bump,” he said. McFarland Communications Greater Tampa Chamber of Commerce Greater Cleveland Partnership The convention spurred work for Mazur’s company and others in the construction trades. New cell towers went up. There were security upgrades at the airport. Suites at the hockey stadium were converted into newsrooms and then converted back into suites. The city also got a facelift. Buildings were painted and roads paved, Mazur said. Landscapers were busy. Listen as we discuss how businesses in other RNC cities “Every median for a 5-mile radius of downtown of any significance got new palm trees and fancy flowers,” he said. took advantage of the convention, its long-term effects and MJM got involved in the convention through the traditional bidding process, said Mazur. But he said local connections helped him develop a relationship with what Cleveland might learn from their experiences. Dallas-based Freeman Cos. — a company that has had a long-term relationship in handling installation and production for the GOP. Mazur said the convention will be good for Cleveland businesses and for the November 12 | 11:00 am - Noon city’s national profile. The convention will also bring the opportunity for local individuals and companies to participate in government itself. REGISTER TODAY: www.CrainsCleveland.com/Webinars “It will give your city a better idea of how government works,” said Mazur. “I think that’s pretty valuable.” — Stephanie Czekalinski 20141027-NEWS--25-NAT-CCI-CL_-- 10/23/2014 2:11 PM Page 1

OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25

STORIES FROM MINNEAPOLIS-ST. PAUL THE FUN SISTERS In August 2008, Fun Sisters committed to open a pop-up boutique in the USBancorp Building in St. Paul’s Skyway System during the two weeks surrounding the RNC. The women’s boutique was among 19 companies that signed short-term leases as part of the city’s Red Carpet Retail Initia- tive to fill visible storefronts with retailers who would do business before, during and after the convention. “They were trying to make it look as cool and full of life as possible for all these people for the convention. We agreed to the special rate for two weeks and we were busier than all get out,” said Dawna Johnson, district manager for Fun Sisters, who added that most of the people who shopped during that time were local workers in the area not convention goers. “It was phenomenal. Once the RNC was over we decided we should stay here,” Johnson said. The building management wanted to keep the activity and offered flexible and affordable terms to keep the boutique operating in the space that had been vacant for more than four years, she said. Fun Sisters adjusted its hours to capture the work crowd. Six years later, Fun Sisters continues to thrive in this downtown location with a loyal and enthusiastic customer following. It’s the only remaining business from the retail initiative, and the sixth Minneapolis-area location for Fun Sisters. Up until this year, the clothing boutique was only open five days a month – the third Monday through Friday of the month. Now it is open three days a week but only from 10 a.m. to 3 p.m. to service the downtown workers. “We have a prime location and everyone hits us up on their lunch hour,” she said. “People down here are religious… they put it on their calendar and they are excited about it. The people support us because they want us to stay there. We want to make it better and take it to the next level.” — Chrissy Kadleck

MCFARLAND COMMUNICATIONS Teresa McFarland lived, breathed and messaged everything associated with the Minneapolis-St. Paul Republican National Convention for a nonstop, stress-filled eight months. She effectively took a professional leave from her public relations firm, McFar- land Cahill Communications, to seize the unique opportunity of being communications director for the Minneapolis-St. Paul 2008 Host Committee. McFarland had been recruited to apply for the position based on her resume of ® working with independent-minded Minnesota politicians, such as Gov. Jesse Ventu- OF TRI-C ra, Congressman Tim Penny and Gov. Rudy Perpich. It also didn’t hurt that she had GRADS also been the director of public relations for the Mall of America — one of the most well-known attributes of the region. “There was a lot of political pressure around the convention because clearly the Republicans wanted to have a successful convention and two cities with Democrat- LIVE & ic mayors wanted to put their best foot forward and showcase the cities,” she said. “We had a team of people who came together from all sides of the aisle politi- WORK IN cally to put on a big show and to really showcase everything we had to offer in the Minneapolis-St. Paul area.” She said her company was supportive, especially since she basically was onsite with the host committee for eight months. Her team covered her with her other NORTHEAST OHIO clients and also would come in occasionally and assist when the convention needed help. The logistics were challenging. The convention and voting activities were held in St. Paul and many of the events were held in Minneapolis. “When I look back on it, MORE THAN it’s really hard work and it’s really stressful but I think it’s important to have some fun with it too,” she said. “Overall this is such a positive thing to host a convention like this. It’s so good for the city to really shine and get as many people involved as NEARLY you can because these types of events don’t come around that often.” TRI-C LOCAL COMPANIES McFarland said the lasting benefits for her firm center around relationships that STUDENTS were established and are still strong six years after the event. HAVE HIRED TRI-C “From a visibility standpoint it was a very big deal for our company and it estab- SUCCESSFULLY STUDENTS lished us as being able to work in very high pressure,” said McFarland, who started her own firm, McFarland Communications in 2012. “When you go through an expe- TRANSFERRED STUDENTS OR CONTRACTED rience like this that is so intense, the relationships that you make are that much to 4-year universities ATTEND TRI-C stronger because you have gone through battle and come out on the other side. A WITH TRI-C TO TRAIN convention is kind of like that. You make lifelong friends who will always have your in the past ﬁve years back.” EACH YEAR THEIR WORKERS — Chrissy Kadleck

WANT TO LEARN MORE? What Are You Waiting For? The right college education can boost your lifetime earning Hear Teresa McFarland and others discuss the GOP power by hundreds of thousands of dollars. convention on Nov. 12 during a Crain’s webinar. tri-c.edu Register here: www.crainscleveland.com/webinars Where futures beginSM 216-987-6000 14-4507 20141027-NEWS--26-NAT-CCI-CL_-- 10/24/2014 2:03 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014

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REBECCA R. MARKOVITZ After formally announcing on July 8 that Cleveland had been selected to host the 2016 RNC convention, Cleveland Mayor Frank Jackson said, “What this means is that whenever we come together as a community, we are successful.” Family Governance & Wealth Planning RNC continued from page 1 “A lot of the folks who will be volved. A big chunk of the money — at coming in already have people who Members of the Lake County Vis- least $90 million based on studies of are already scouring for vendors, itors Bureau have been meeting previous conventions — spent by they are scouring online and else- with the area chambers of com- the 40,000 conventioneers, media where,” said Rick Turner, manager merce, staff at Lakeland Communi- crews, lobbyists and who knows of new business development at ty College and others to brainstorm who else coming to town will go to Colortone Staging and Rentals. ways to get on the radar of Republi- the city’s hospitality industry. “They knew who to call in New cans and others coming to town. Joe Roman, president and CEO of York; they know who to call in Los “Much of the downtown Cleve- Oct. 29 | 7AM - 9:30AM the Greater Cleveland Partnership, Angeles and Dallas. But for Cleve- land area will be cordoned off and Wyndham Cleveland Playhouse Square said wining, dining and hobnob- land, it’s a brave new world for hard to move around,” said Lake bing by Republicans and the com- them. We really have to put a spit County Visitors Bureau executive panies and associations that come shine on everything we’re doing.” director Bob Ulas. “The challenge CrainsCleveland.com/Breakfast to town to influence convention- Colortone is a company that cre- for us is to reach out, for example, goers will be the core of spending ates tradeshow booths and pro- to restaurants that are amenable to that local companies should be able duces business events. Turner also keeping staff late, and we’re also to tap into, along with the costs of is one of the producers of the Event looking for entertainment venues.” getting Quicken Loans Arena ready Expo, an annual trade show for the Ulas said he’s already lining up for the convention and the home- Northeast Ohio meeting and con- locations such as Classic Park, the land security investment. vention business. Holden Arboretum, golf courses “And we know those dollars will Making contact with leaders of and even bowling alleys in Lake get further turned over in the econ- the local Republican Party won’t County that might host events omy,” he said. hurt, Turner said, but they will be around the convention. So everyone from balloon makers more outward facing, concerned Another avenue for making con- to florists to golf club operators are more with working with the nation- nections is through organizations thinking about their opportunities. al party then working on local such as the Meeting Planners Inter- Fellows’ strong Republican ties events. national Ohio Chapter or ISES may give him direct entry to a Turner said that any organization Cleveland, the local chapter of the chunk of printing business. But coming to a new town for a trade International Special Events Society. other businesses are figuring out show or convention often wants to “All the businesses involved in how they get on the list or lists of find a single firm to be its liaison to ISES have been talking about 2016,” preferred vendors for the conven- the vendor community — a kind of said Rachael Fuller, president of the tion season. contractor who leads a group of local chapter and special events A key place to start will be Posi- subcontractors. manager of the Cleveland Zoologi- tively Cleveland. Its convention and So, he said, it makes sense to get cal Society. “Our main focus is to visitors services department is the in front of meeting planners and get people in their small businesses place where meeting and confer- hotel event managers. to come together to network on ence planners go for help. The con- “You want to mount a campaign how to get noticed and how to show vention and visitors bureau isn’t of awareness,” he said. “You want off what you have to offer.” quite ready to handle the onslaught everyone to know you are the best And there will be no shortage of of convention vendors yet but it will and you’re going to exceed their ex- competition for the work. be ready soon, according to spokes- pectations.” Lynde Vespoli, director of desti- woman Jennifer Kramer. nation management for Discover Kramer added that the Cleveland Everyone wants a My Cleveland, which provides tours RNC Host Committee will also be a piece of the pie of the city, attended Event Expo touchstone for vendors once it’s earlier this month. staffed up in the coming months. While ground zero of convention “There must have been 150 to Of course, it’s not too early for a week will be downtown Cleveland, 200 people in the event industry in business to start polishing its image even far-flung areas are trying to Cleveland all in one place,” she and finding ways to get its name out. figure out how they can get in- said. 20141027-NEWS--27-NAT-CCI-CL_-- 10/24/2014 4:28 PM Page 1

OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 FOREST CITY continued from page 5 (then) learned about Vestor,” Demagall said. “Part of our concept is to work with local companies in every aspect of our business. Working with Vestor allows us the freedom to work with other local entrepreneurs raising capital through local investors.” The project requires about $1 million to get off the ground, which comes, in part, from yet another, more traditional, type of equity: the group’s own cash. Demagall said he and his three partners have substantial investments of their own in the project, though he declined to say how much. “We decided to put the money to work locally rather than a mutual fund somewhere,” Demagall said. Besides the indoor beer tasting area, microbrewery and 20-seat outdoor beer garden, plans call for the building to be decorated to resemble a 19th century beer garden. It also would house two other startups as tenants — one a coffee maker and a mead maker. Demagall said his investor group, known as CBGC LLC, plans to close on the purchase of the building by month’s end. Cory Riordan, Tremont West executive director, said the property is zoned to allow the beer garden and brewery concept. He said Duck Island neighbors accepted the plan as preferable to having the building sit largely empty. Another bonus is that a derelict wood-frame house dating from 1880 on Freeman next to the beer garden space will be demolished. “The house has been discussed as a problem at more block club meetings than we can count,” Riordan said. “The Duck Island master plan also calls for more density on Columbus and Abbey Avenue than on interior streets. This taps into the story of what is happening (nearby) with breweries on West 25th Street. We still have fewer breweries than we had before Prohibition.” Demagall said his partners also plan to make the most of the frame house that will be razed. The wooden joists that form the house’s walls will be repurposed into chairs and tables for the operation. Plans call for Forest City Brewery, which takes its name from a brewery STAN BULLARD that once operated on the Huron Road side of what is now the Tower City Jay Demagall stands on the site of the original beer garden, behind the brewery, which is to be restored. Center complex, to open next March, Demagall said. MAGNET continued from page 5 Previously, students were being In September, Magnet received a brought into the company in their se- $40,000 grant from the Raymond nior year through early placement, John Wean Foundation in Warren said Doug Miller, director of commu- to expand the Work-Based Learning nity outreach at Polaris. The Magnet program in Mahoning County. program helped give students a Crocker said the group also has had chance to get real-world experience requests from other schools, with before their senior year began. which it has shared information, “It’s a really great opportunity for and that it has a proposal out now them to explore the career and see if to grow to Summit County. it’s a good fit for them,” Miller said. The program is a “win-win-win,” The students coming out of the said Jim Jaye, Nordson’s director of program are better prepared for a corporate communications. It gives career in machining and manufac- students the chance to grow, helps turing, said Troy Dunlap, manager companies attract qualified candi- of hourly work force development dates and raises awareness of manu- at Swagelok. And that helps create a facturing in the community, he said. stronger talent pipeline. Crocker said she hopes that in a Becky Kemp, director of organiza- few years, these types of programs tional development and talent man- are “routine.” Manufacturers still agement at machining company aren’t finding the employees they EMC Precision in Elyria, said the need, she said, and many say it’s company is looking to build its time to look at the European model bench and bring on young people of apprenticeship training, which who want to stay beyond the sum- gets students involved at a younger mer. The goal was to help them grow age and involves more significant into the technical aspects of the job, company investments. but it also helped EMC keep up with William Bogan, pre-engineering production demands when its regu- instructor for Lorain High School, lar staff was going on vacation. said it’s difficult for students to get Nicholas Szabados, a senior at hands-on experience in manufac- Lorain High School, said he had turing and pre-engineering because wanted to gain “experience and of safety laws and called the oppor- knowledge” of the field during his tunity for young students to take internship at EMC Precision last part in paid internships “fantastic.” summer. He said he plans to earn a At Lorain County JVS in Oberlin, degree in electrical engineering af- the Work-Based Learning program ter graduation and now is working helped open new doors for students. part-time at EMC after school. Career services coordinator Bill El- Grant O’Bryon, a Strongsville se- liott said the school already had been nior in the Polaris precision ma- getting students placed in Westlake- chining program, said he gained based Nordson Corp.’s office, but personal job skills, like the impor- the program with Magnet made the tance of being prepared, as well as machining side of the business avail- technical ones, while working at able when Nordson joined in 2014. Swagelok last summer. The Work-Based Learning pro- O’Bryon recently started to work gram also helped to grow the rela- at Swagelok again part time, and he tionship between Polaris Career said he’d be interested in pursuing Center in Middleburg Heights, a career there after graduation. He which signed on in 2013, and Solon- said he was drawn to the creative based fluid system component aspects of CNC programs. maker Swagelok Co., which joined “I’ve always wanted to know how the program in 2014. things work,” O’Bryon said. 20141027-NEWS--28-NAT-CCI-CL_-- 10/24/2014 8:43 AM Page 1

28 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 27 - NOVEMBER 2, 2014 LARGEST ACCOUNTING FIRMS FFF

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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 29 TV

continued from page 1 tive director of research for Joyce with Time Warner Cable is worth a last three regular seasons. Julius & Associates, an Ann Arbor, reported $200 million per year, are The enthusiasm was every bit as Mich.-based company that mea- the only NBA team with a local TV evident on local TV. sures the impact of corporate spon- contract that exceeds $45 million an- The first six Cavaliers preseason sorships, said he assumes Fox Sports nually. Two spots ahead of the Cavs broadcasts on Fox Sports Ohio and Ohio raised its advertising rates, “so at No. 5 on Forbes’ list of the richest SportsTime Ohio averaged a 3.33 things are going pretty well.” local contracts are the Detroit Pis- rating, which is 84% ahead of the McGillicuddy wouldn’t comment tons, who have a 10-year contract norm for the 2013 preseason. The on the network’s rates, but said with Fox Sports Detroit that report- figure doesn’t include a 2.0 rating “with increased demand comes in- edly is worth $350 million. for the broadcast of the Cavs’ pre- creased pricing.” Does that mean the Cavs will be season finale on Wednesday, Oct. able to fetch at least $10 million 22, but even that game — with more per season in their next con- James resting up for the regular sea- ‘Everyone is willing to pay’ tract with Fox Sports Ohio or anoth- son and ESPN pulling more than When Forbes analyzed the NBA’s er provider? 40% of the viewers away from Fox largest local TV deals in January, the McGillicuddy wouldn’t comment Sports Ohio with its broadcast of magazine reported that the Cavs on the network’s contract with the the contest — had a larger audience had the league’s seventh-richest Cavs, and the team would only say on Fox Sports Ohio than a typical contract, with Fox Sports Ohio pay- that it has a “multiyear partnership in place” and Fox Sports Ohio “has preseason event. ing the team a reported $27 million JAMIE SABAU/GETTY IMAGES Two Cavs preseason broadcasts per year. The 10-year contract, been and continues to be a great LeBron James and the Cleveland Cavaliers drew a sellout crowd, along broadcast partner.” generated ratings of 4.1 or higher on which started with the season in with a huge local TV rating, for an Oct. 20 game in Columbus. Fox Sports Ohio and SportsTime which James led the Cavs to their Wright said he doesn’t have Ohio. Last season, when the Cavs first NBA Finals (2006-07), runs enough data to venture a guess on were 33-49 and again wound up as through the 2015-16 campaign. what the Cavs’ next TV contract could OFF TO A GOOD START bring. What is certain, he said, is that prominent players in the NBA lot- Assuming James, as he has re- The Cavs’ have had two preseason games draw a rating of 4.1 or better the Cavs and Fox Sports Ohio are op- tery, their broadcasts on Fox Sports peatedly stated, is here for the long in 2014 — Fox Sports Ohio’s 4.31 rating for a game against the Chicago erating from a position of power. Ohio ranked seventh in the league haul, the Cavs would seem to be Bulls on Oct. 20, and SportsTime Ohio’s 4.1 rating for a matchup against “If it’s the hot item, everyone in with an average rating of 2.79. able to command much more in the Dallas Mavericks on Oct. 17. the sponsorship game wants to be McGillicuddy said the robust their next TV negotiations. But Those ratings are 54.5% and 47% ahead of the average rating for the preaseason ratings “bode very well” Joyce Julius’ Wright said “there is a there, and everyone is willing to pay,” Wright said. “They feel like Cavs’ regular-season broadcasts on Fox Sports Ohio in 2013-14. Those for the type of audience the network cap” to the amount of money teams games had a ratings norm of 2.79, which was the NBA’s seventh-best. will attract for its regular-season can receive in local TV deals — a they’re going to get a bang for their broadcasts. rule that doesn’t seem to apply to buck that way.” Using James’ first tenure with the the national TV contracts that have organization as a barometer, the soared into the billions. Cavs’ local TV ratings could at least Earlier this month, the NBA triple this season. agreed to a nine-year extension In 2008-09 and 2009-10, the two with ESPN and Turner Sports that seasons preceding James’ free- will begin in 2016-17 and raise the Open for agent exit, the Cavs’ local TV ratings average annual value of the com- were the best in the league, and it bined contract from $930 million to wasn’t close. The 2008-09 campaign $2.66 billion. According to Forbes, produced a record 8.79 ratings the NBA’s 30 teams collected a Business norm — 40% ahead of the average combined $628 million from re- for the San Antonio Spurs, whose gional sports networks in 2012-13, ratings were the NBA’s second-best. accounting for only 33% of the The following season, the Cavs’ lo- league’s $1.9 billion in media rev- with Choices that Work. cal TV broadcasts topped No. 2 San enue. Antonio by 27%. The national TV revenue soon McGillicuddy said it wouldn’t will be almost three times as great BUSINESS SOLUTIONS PLATINUM surprise him if the Cavs’ ratings this as the current contract, but that season “end up back there again.” doesn’t necessarily mean the local The skyrocketing viewership — deals will follow in the same man- MONEY MARKET CHECKING James’ final five seasons in Cleve- ner. land produced ratings that were be- “Each market is unique as to tween 45% and 215% ahead of Fox what the local brands can pay,” Sports Ohio’s norm for the 2013-14 Wright said. “Cleveland is not New % % season — comes with an increased York and not some other markets cost for anyone who wants to do that might be able to pay a larger business with the team and its local number like that.” 1.04 0.75 1 TV affiliate. 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LIBRARY CRAIN’S BLOGS GET THE LATEST FROM OUR EDITORS continued from page 5 cording to Doug Evans, the executive di- vant with the proliferation of information AND REPORTERS, INCLUDING: Plus, the state’s current library funding rector of the Ohio Library Council, a on the Internet, and part of Jaffery’s job hovers at the same level it did in 1996. statewide advocacy group based in with the Friends group will be to sort EDITOR’S CHOICE: Managing editor Scott Suttell As such, over the last five years, the li- Columbus. through that noise. rounds up news and views about business, and stories brary trimmed its work force from almost Evans said about 70% of the state’s li- “There’s no doubt libraries are a big of interest in Northeast Ohio. Weekdays 950 people to fewer than 700 today and brary systems rely on local levy money to part of what communities need, but SPORTS BIZ: Assistant editor Kevin Kleps writes about cut back its hours of operation, including support their operations in addition to there’s that mindset out there we have to the Browns, Cavaliers, Indians and much more. closing on Sundays, according to library their state support. But given the limita- work through,” Thomas said. Weekdays director Felton Thomas. Those changes tions of both those revenue sources, more Later this year, the Friends group will allowed the library to maintain its opera- are looking to prop up their books with launch a fundraising campaign, which Jaf- HEALTH CARE: Reporter Timothy Magaw breaks tions, though Thomas said it needs a sig- philanthropic dollars. fery said is more focused on “expanding down the latest news about the region’s hospitals. nificant funding jolt if it wants to expand If anything, Thomas said the Cleveland communication with the donor base” Tuesdays upon its mission of improving literacy library is behind the curve when it comes than raising a significant amount of dol- WHAT’S COOKING: Twice per month, freelance throughout the city. to fundraising given that others, particu- lars. reporter Kathy Ames Carr has morsels on the local Library fundraising isn’t necessarily a larly large library systems, have founda- “It’s not that we need only private or restaurant scene. new phenomenon, but it is something tions — something he said Cleveland’s is public support, we need the entire com- that more libraries are paying attention to, working toward. He said there’s still a per- munity to come together to support the li- CRAINSCLEVELAND.COM/SECTION/BLOGS especially given their funding issues, ac- ception that libraries are becoming irrele- brary,” Jaffery said.

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OCTOBER 27 - NOVEMBER 2, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 31 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Local hospitals step up tions, the team president. OCTOBER 20 - 26 The third, and most obvious, explanation as leaders on LGBT issues for the added noise: The Browns have Northeast Ohio’s hospitals are increas- played better at home, winning two of their The big story: Philips Healthcare once again ingly friendly to the lesbian, gay, bisexual first three games at FirstEnergy Stadium is making medical imaging machines in High- and transgender community, according to a heading into a matchup against the Oakland land Heights. The company voluntarily shut pro- recent survey from the Human Rights Cam- Raiders on Sunday, Oct. 26. duction at the factory in early 2014, soon after paign Foundation, the educational arm of “I think fans feel like they can affect the federal regulators identified quality control prob- the country’s largest LGBT civil rights group. outcome of the game,” Scheiner said last lems. But the shutdown ended in the third quar- The foundation’s Healthcare Equality In- week. “Fans know this team can play well at ter: Several CT scanners are “on the line right dex 2014 identified 15 Northeast Ohio hospi- home. — Kevin Kleps now,” and should be shipped to customers dur- tals as leaders in LGBT health care equality. ing the fourth quarter, according to Frans van To earn the recognition, hospitals must Kids go wild for a chance Houten, CEO of Royal Philips. “Cleveland man- meet the four criteria for LGBT patient-cen- ufacturing is ramping up as we speak,” he said in tered care, which includes patient and em- GREGORY SHAMUS/GETTY IMAGES to set a world record an Oct. 20 conference call. The plant is produc- ployee non-discrimination policies that FirstEnergy Stadium has been noticeably On Thursday morning, Oct. 30, about ing small numbers of medical imaging machines specifically outline sexual orientation and louder this season. 4,000 children from 37 cities, 15 states and — “10s of units,” as van Houten described it — gender identity, a guarantee of equal visita- Washington, D.C. — including about 175 but each one is an expensive piece of equipment. tion for same-sex partners and parents, and Now hear this: FirstEnergy preschool children served by Catholic Char- LGBT health education for staff. ities and Council for Economic Opportuni- Gone too soon: Frank Northeast Ohio’s honorees are Summa Stadium is getting loud ties in Greater Cleveland — will descend on Samuel, a fixture in North- Health System, UH Ahuja Medical Center, The first phase of the two-year, $120 mil- Cleveland’s Rock and Roll Hall of Fame and east Ohio’s economic devel- UH Bedford Medical Center, UH Geauga lion renovation to FirstEnergy Stadium has Museum in an attempt to earn a Guinness opment community, died in Medical Center, Cleveland Clinic’s main brought with it some “wow” elements — World Records title for the world’s largest si- an Oct. 20 car crash in Geau- campus, MetroHealth Medical Center, UH mainly the 6,900-square-foot video boards multaneous vocabulary lesson. ga County. Samuel was pres- Case Medical Center, UH MacDonald in each end zone that are the fourth-largest The event will feature a reading of Calde- ident of VentureOhio, which Women’s Hospital, UH Rainbow Babies and in the NFL. cott Medal honoree Peter Brown’s “Mr. has been pushing for the state Children’s Hospital, UH Seidman Cancer The work has also produced another ben- Tiger Goes Wild.” Samuel of Ohio to renew the Ohio Center, VA Louis Stokes Cleveland Medical efit — a much more noticeable home-field The program will be hosted by PNC Bank Capital Fund or provide Center, UH Elyria Medical Center, UH advantage for the Cleveland Browns’ lake- as part of its “Grow up Great” initiative — a some other funding source for startups. Samuel Geneva Medical Center, UH Parma Medical front stadium. $350 million, multiyear, bilingual program founded the Geauga Growth Partnership in 2010 Center and UH Richmond Medical Center. “Phase 1 was really impactful,” Browns launched in 2004 that aims to help young and served as its president until November 2013, In all, 26 organizations in Ohio were president Alec Scheiner said. “I think our children up to age 5 with reading to better when he stepped down to lead VentureOhio. He named leaders. The only states with more stadium is louder, and it’s different.” prepare them for school and life with a fo- also helped create the Ohio Third Frontier Pro- recognized institutions are California with Scheiner believes there are three reasons cus on the underserved. ject and served as the governor’s science and 65 and New York with 47. Florida tied Ohio for the amped-up noise at the stadium. PNC has donated more than $6 million in technology adviser from 2000 to 2007. with 26. Countrywide, 426 of the survey’s Increasing the seating capacity in the low- grants to Cleveland organizations and local 507 respondents were named leaders in er bowls and filling in quite a bit of the open kindergarten readiness initiatives, including Summa shakeup: Three longtime Summa LGBT health care equality — a 100% in- space with the massive new scoreboards has the Rock Hall for its Toddler Rock program, Health System executives, including the head of crease over last year’s numbers. helped, as has the increased fan engage- Catholic Charities and the Council for Eco- the SummaCare insurance company, are depart- — Timothy Magaw ment that has resulted from the renova- nomic Opportunities. — Jeremy Nobile ing the Akron-based health system. Marty Hauser, SummaCare’s CEO and the health system’s chief government relations officer, will leave at year’s end after about 35 years with the WHAT’S NEW BEST OF THE BLOGS organization. Bill Powel, Summa’s senior vice president, general counsel and secretary, and Excerpts from recent blog entries on Obama “contained a blunt warning for De- Patrice Lange, Summa’s senior vice president for CrainsCleveland.com. mocrats” and predicted “crushing Democ- planning and corporate support, will leave ratic losses across the country” if the party Nov. 3. did not do more to get black voters to the Up to the challenge? polls. Successful shopping trip: A joint venture Jerry Jordan, a former president of the “African-American surge voters came out of Beachwood-based DDR Corp. of Beachwood Federal Reserve Bank of Cleveland, is part in force in 2008 and 2012, but they are not and Blackstone Real Estate Partners acquired 71 of a Cato Institute effort to take on the Fed- well positioned to do so again in 2014,” Cor- shopping centers owned by American Realty eral Reserve. nell Belcher, the pollster, wrote in the Capital Properties Inc. for $1.93 billion. The The Wall Street Journal reported that memo, dated Oct. 1. “In fact, over half aren’t portfolio primarily consists of power centers lo- Cato, a libertarian think tank, launched the even sure when the midterm elections are cated in Atlanta, Chicago, Denver, Houston, Los Center for Monetary and Financial Alterna- taking place.” Angeles, Phoenix and Washington, D.C., that are tives to “challenge the central bank’s poli- Fudge, who chairs the Congressional occupied by retailers including Costco, Bed Bath COMPANY: Buyers Products, cies and explore alternative ways to manage Black Caucus, seemed to agree with that as- & Beyond, Kohl’s, Target and Trader Joe’s. The Cleveland the U.S. money supply, including but not sessment. average base rent per square foot of the portfolio limited to a return to the gold standard.” “Anybody who looks at the data realizes “is 6% below DDR’s current prime average, rep- PRODUCT: SaltDogg TGS02 The paper said the new center “boasts that if the black vote, and the brown vote, some heavy hitters in the economics world. doesn’t turn out, we can’t win. It’s just that resenting a unique opportunity to drive future tailgate spreader growth,” the company said. Its academic advisers include two Nobel simple,” she said, referring to African-Amer- The company says its new tailgate laureates, New York University’s Thomas J. ican and Latino voters. “If we don’t turn out, Sargent and Chapman University’s Vernon we cannot hold the Senate.” Net results: Medical Mutual of Ohio will pro- spreader is designed for both residential L. Smith, as well as Stanford University vide $1.4 million to Cleveland State University to and commercial application of ice melt and economist John B. Taylor and others.” install a dome over the university’s six tennis bagged salt. Stick to your principles Two former Fed policy makers are in- courts located at the intersection of East 21st Buyers Product’s three-cubic-foot capac- volved, too: former St. Louis Fed president A Chronicle of Higher Education story on Street and Chester Avenue. In recognition of the ity tailgate spreader features a frame to fit William Poole will be a senior fellow, and how Catholic colleges “are promoting their gift, the facility, which will be outfitted with me- into a two-inch, Class 4 hitch, which does former Cleveland Fed president Jordan will missions in an increasingly secular society” not require truck bed rail drilling. It is ideal chanical systems that provide heat, air and insu- be an adjunct scholar. included some insight from Walsh Univer- for use on half-ton to 1-ton trucks and SUVs. lation for year-round play, will be named the Cato has raised about $9 million from “a sity in North Canton. The new SaltDogg TGS02 tailgate spread- Medical Mutual Tennis Pavilion. The facility will number of independent contributors” for “When Richard Jusseaume became pres- er features a horizontal-auger feeder design be open to Cleveland State’s men’s and women’s the center, enough to fund it for five years, ident in 2002, one of his first goals was to that gives contractors the flexibility to easi- varsity tennis teams, the university community said the institute’s president, John Allison. make Walsh more explicitly Catholic,” the ly spread ice melt and bagged salt, accord- and the public. The center’s work will cover monetary and story noted. “His reasoning: the stronger the ing to Buyers Products. An optional vibrator regulatory policy. mission, the stronger the college.” can be added for mixing salt and sand. Made the cut: Akron is one of eight U.S. cities “The Fed has amazingly good credibility He had a prayer garden built, taught in- The unit weighs 64 pounds. Dave Zelis, that will get “artist development day labs” over based on its amazingly weak performance,” coming faculty about the college’s traditions, the next three years from the Sundance Institute, director of sales and marketing at Buyers Allison said. “We want to challenge that opened a campus near Rome and “focused the arts nonprofit founded by Robert Redford, as Products, said it has a 1/3 horsepower, 12- credibility.” on programs that fit Walsh’s emphasis on a result of $1 million in new funding from the volt DC dual-shaft gear motor and offers service, such as education, nursing and John S. and James L. Knight Foundation. Work- spread widths from three feet to 20 feet that counseling,” according to the story. shops, panels and labs will take place in Akron are “practical for both residential and com- It’s ‘just that simple’ Enrollment has nearly doubled, to 3,000 and the other cities. Over three years, 12 film- mercial use.” U.S. Rep. Marcia Fudge, D-Cleveland, from 1,650. A recent student-government makers from eight cities will be named Sundance SaltDogg offers a product line of 12 tail- was quoted in a New York Times story that president was a Muslim from Afghanistan | Knight Fellows and will participate in special gate spreaders. The company says each looked at Democrats’ efforts to get more “A few people advised me to take it easy screenings, panels and professional develop- spreader is constructed from polyethylene, black voters to the polls for the midterm with the Catholic stuff,” Jusseaume said. ment opportunities at the Sundance Film Festi- steel and stainless steel for top perfor- elections. “It’s almost as if it’s not cool to identify val in Park City, Utah. mance, durability and longer product life. The story noted that a confidential memo yourself too much. I’m saying identify your- Visit SaltDogg.com for information. from a former pollster for President Barack self and welcome everyone.” 20141027-NEWS--32-NAT-CCI-CL_-- 10/23/2014 12:18 PM Page 1