NE Ohio Opens up to World Business Leaders Taking Fresh Approaches to Make Region More Appealing to Immigrants

20130401-NEWS--1-NAT-CCI-CL_-- 3/29/2013 4:01 PM Page 1

Vol. 34, No. 13 $2.00/APRIL 1 - 7, 2013

SPECIAL REPORT NE Ohio opens up to world Business leaders taking fresh approaches to make region more appealing to immigrants

By JAY MILLER [email protected]

Not waiting for Washington politicians to tell them where federal immigration policy is going on big-pic- ture immigration subjects like border integrity citizenship issues, the business and civic leaders of Northeast Ohio are stepping up their efforts to make the region more attractive to immigrants and other newcomers. Among the initiatives: ■ This Tuesday, April 2, the Greater Cleveland Part- nership will host a forum titled “U.S. Immigration Policy and the Midwest Economy.” Carol Caruso, senior vice JASON MILLER president for government advocacy at the regional The $465 million convention center and medical mart project is nearing its completion. chamber of commerce, said about 80 business leaders are expected to discuss a report that analyzes the role of ■ Anticipation builds immigration in growing the Midwest economy, as well THE IMPACT OF THE GLOBAL as the importance of federal immigration policy reform. ■ Center as a selling point See UNITING Page 29 CENTER FOR HEALTH INNOVATION ■ Local impact ■ Maps and photos AND CONVENTION CENTER ■ Full coverage: Branches can’t www.crainscleveland.com/medmart PAGES S-1 to S-14 bank on future As many brick-and-mortar Housing market constructs hope here locations close, new ways of

struction and the rising doing business are a must Area manufacturers benefit from a rebound in sales of existing homes nationwide. By MICHELLE PARK home sales, look to hire employees to keep pace “Just yesterday, I was [email protected] in a client’s office and By DAN SHINGLER workers. we were looking at the The two banks with the most Northeast Ohio de- [email protected] But here in Northeast Ohio, where ABI, the Architectural posits are shuttering dozens, even hundreds, of homebuilding is only starting to recover Billings Index (a gauge branches this year across their footprints, and some The U.S. housing market finally is and certainly has not reached its pre-crash of construction activity) Peplin observers predict this is only the beginning for an bouncing back from its economy-busting levels, manufacturers say they are still get- and it was up nicely — industry that’s grappling with diminished customer crash of 2008, and experts credit it with ting big gains from what is a national there’s some good stuff going on out traffic, higher costs due to increased regulation and the benefits that range from boosting pickup trend. Local companies that produce con- there,” said Steve Peplin, president of ever-present need to turn a profit. truck sales to ringing the cash registers at struction materials, fixtures and home metal stamping company Talan Products PNC Bank announced in early March that it will close countless diners, barber shops and other repair products say they are benefiting in Cleveland. about 200 branches this year in 19 states, including small businesses that serve construction from increases in both new home con- See CONSTRUCTS Page 29 See BRANCHES Page 8 13 7 NEWSPAPER 74470 83781 0 20130401-NEWS--2-NAT-CCI-CL_-- 3/29/2013 2:40 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013 COMING NEXT WEEK A dividing line Private-industry employers spent an average of $28.89 per hour worked for total Business of art employee compensation in December 2012, though the figure was a lot higher for people in management, professional and related fields. Wages and salaries aver- Not all artists shun the idea aged $20.32 per hour worked and accounted for 70.3% of the costs, according 700 W. St. Clair Ave., Suite 310, to the U.S. Bureau of Labor Statistics. Benefits averaged $8.57 per hour worked Cleveland, OH 44113-1230 of making money. People and accounted for the remaining 29.7%. Here’s how the numbers break down for Phone: (216) 522-1383 like Jackie Adamany (right) cost per hour by occupational group: Fax: (216) 694-4264 help them figure out how to www.crainscleveland.com Publisher/editorial director: do it. Read about that and Occupation group Wages/salaries Benefits Total compensation Brian D. Tucker ([email protected]) more in next week’s Small Editor: Mark Dodosh ([email protected]) Business section. JENNIFER KEIRN Management/professional $35.85 $15.18 $51.03 Managing editor: Scott Suttell ([email protected]) Sections editor: REGULAR FEATURES Average of all workers $20.32 $8.57 $28.89 Amy Ann Stoessel ([email protected]) Assistant editor: Kevin Kleps ([email protected]) Best of the Blogs ...... 31 Letters ...... 10-11 Sales and office $16.13 $6.48 $22.61 Sports Bright Spots ...... 13 Publisher’s column...... 10 Senior reporter: Stan Bullard ([email protected]) Classified ...... 30 Reporter’s Notebook ...31 Service $10.67 $3.45 $14.12 Real estate and construction Reporters: Editorial ...... 10 Special Report: Convention Jay Miller ([email protected]) Going Places ...... 14 center/med mart..S-1-S-14 SOURCE: U.S. BUREAU OF LABOR STATISTICS Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Rachel McCafferty ([email protected]) Manufacturing and energy Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim ([email protected]) Events Manager/Operations & Logistics: Christian Hendricks ([email protected]) Events Manager/Promotions & Sponsor Relations: Jessica Snyder ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Senior account executive: Adam Mandell ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) John Banks ([email protected]) Sales and marketing assistant: Michelle Sustar ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Digital strategy and development manager: Stephen Herron ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Lauren M. Rafferty ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected])

Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher

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APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Summa is shifting its approach The govern- ing people healthy and out of the Akron-based health system is emphasizing population health ment and some emergency rooms. Summa said it commercial pay- needed an outside partner — one it By TIMOTHY MAGAW the system’s finances in the short ones that focus on keeping people ers slowly are eventually found in CHP — to ease [email protected] term, but also about giving Summa healthy and out of the hospital. instituting new that transition with an infusion of the financial wherewithal to trans- Given that hospitals largely are paid forms of pay- cash. For Summa Health System pres- form the way it delivers care. for the volume of services they pro- ment that swap “Fundamentally, we believe to ident and CEO Thomas Strauss, the Summa and its soon-to-be mi- vide, that transition has been a slow that fee-for-ser- our core that the way we are prac- plan to sell roughly one-third of the nority owner, the Cincinnati-based march, but it’s one the federal gov- Strauss vice model to ticing health care in our country is- $1.4 billion Akron-based enterprise Catholic Health Partners, both are ernment and health care observers ones intended to n’t sustainable,” Mr. Strauss said in he steers to a downstate health care attempting to shift their care deliv- insist systems must make if they reward hospital systems for high- an interview last week while seated behemoth isn’t only about buoying ery and operating models toward intend to remain afloat. quality care that focuses on keep- See SUMMA Page 30 INSIGHT They’re HYPE BUILDS raising OVER the bar Technology Recovery Group is expanding, BOARD gets added boost from Kent Displays amps up Cuyahoga County production of electronic By JAY MILLER writing tablet, which is [email protected] It has taken Technology Recovery produced almost 24/7 Group only 3½ years to outgrow the space it expected it to call home for a decade. So the Westlake firm is By CHUCK SODER moving just a few blocks from its [email protected] current Clemens Road home to make sure it can continue to grow. wo years ago, Kent Displays Inc. Cuyahoga County Council at its sold the Boogie Board electronic April 9 meeting is expected to writing tablet in about 300 stores. approve a $1.28 million loan from its Now it’s a lot harder to keep track. Western Reserve Fund to a Technol- T“It’s in the many, many thousands,” ogy Recovery Group affiliate. The said Albert Green, CEO of the company. county loan would complete a $3.2 “I can’t even tell you the store chains million financing package that will we’re in. … Every day there’s a new one.” enable the company to buy and move Kent Displays today sells the Boogie into a bigger building at 31390 Viking Board — which works like a white board Parkway in the western suburb. that lets you erase what you’ve written The 11-year-old company is in with the press of a button — through 32 what’s called the automatic identifi- retailers in North America, including 20 cation and data collection business. that sell it in stores, and several foreign It sells and maintains the barcode distributors. and quick-response code hardware Some huge retailers are selling the and software for retailers and manu- product line. Staples sells variations of facturers.. Bar codes are the ubiqui- the Boogie Board in all of its 1,500 stores. tous series of bars on most every- Bed Bath & Beyond also sells Boogie thing sold at retail. QR codes are the MCKINLEY WILEY Boards in stores all over the country. checkerboard-like black-and-white Kent Displays CEO Albert Green says the company’s Boogie Board is sold by 32 retailers in North squares that smart phones use to See BOARD Page 12 America and has several foreign distributors. connect users with websites. See BAR Page 12 THE WEEK IN QUOTES

“It (immigration “The fact that the “Right now, our greatest “I think it’s going to have a very reform) is becoming a residential sector has been competition is the lack of positive impact on the hotel industry. higher agenda item both on the uptick for about the knowledge about our city. … If … Cleveland hasn’t been in the for the business and civic last nine months, that you haven’t been to Cleveland convention market too much over the community here, and it’s bodes well for us. The in the last six months and past 10 years, and this new facility had the effect of getting overall trend is that there is you’re a meeting planner, you should allow us to get more more organizations momentum in the haven’t been to Cleveland.” aggressively into that market. They’re working together.” residential housing market.” — Mike Burns, senior vice president certainly going to need hotel rooms.” of convention sales and services for — Jose Feliciano, attorney and — Barry Slifstein, vice president of — David Sangree, president of the Hotel Positively Cleveland. Page S-1 chairman of the Hispanic investor relations, RPM Inc. Page One & Leisure Advisors consultancy, Lakewood. Roundtable. Page One Page S-6 20130401-NEWS--4-NAT-CCI-CL_-- 3/29/2013 3:23 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013 AVAILABLE 5000 VAN EPPS RD, CLEVELAND, OHIO Steelyard Commons lining up financing for its second phase

receive federal income tax credits ‘Large anchor’ tenants have been difficult for investing in new businesses or job-creating economic develop- 0HWLFXORXV&UDQH%XLOGLQJZdowntown Cleveland. developing the stores. Burlington will open in late spring The Lyndhurst-based develop- Cleveland City Council helped 2014. er’s original plan for a 200,000- First Interstate with that gap March Other tenants have also commit- square-foot second phase has been 18 when it adopted legislation that ted to this year’s project, but Mr. altered considerably. First Inter- authorizes the Jackson administra- Schneider declined to identify state now plans to construct a tion to recast the tax increment them. 90,000-square-foot building this financing (TIF) for the project in two Do not look for the last major year and follow it later — perhaps ways. In one case, the 19 acres that building project at Steelyard soon. not for at least six years — with a will go into the second phase was First Interstate told the administra- building of 107,000 square feet. separated from the original TIF used tion and Council that it wants to Although Mitchell Schneider, by Steelyard Commons and will get finish that one in 2019. First Interstate president, said mul- a 30-year TIF. In the other piece, the “We had to give outside time tiple sources of financing will be remainder of the original 20-year frames” to the city’s economic needed to cobble together enough TIF was extended by 10 years. development department for the money to build the immediate In Steelyard’s case, the two mea- balance of the second phase, Mr. addition to the big-box complex, sures would produce about Schneider said. “We are extremely the two-step expansion plan stems $400,000 annually in revenue that conservative about it.” from a different constraint: retail will help finance the center. The City documents supporting the demand. Cleveland TIFs use the nonschool TIF legislation estimate the current “The issue is that there are very portion of property tax to generate project will create 140 jobs, and the few large anchor tenants adding revenue to help fund development future phase will add 160. stores around the country. Those projects. Steelyard added 700,000 square that do are adding very few,” Mr. So now, Mr. Schneider said, feet of retail space in the middle of Schneider said, which means devel- “We’re looking for the rest of the the city when it opened in 2007, opers need to be more aggressive to funding.” including Cleveland’s only Walmart swing deals. Other likely sources for financing Super Center. In the years since, the A Burlington Coat Factory is set will include a convention bank loan only additions through the reces- to take 70,000 square feet of the and new market tax credits, which sion were freestanding restaurants 90,000 square feet in the current are loans that allow investors to and fast food operations. ■ Highland Heights plant is seeing clear growth by producing crystal

By RACHEL ABBEY McCAFFERTY company no longer uses it for crys- same, Mr. Fowler said. Some wanted [email protected] tal growth. Some other, smaller to see data or actual products from Cleveland-area sites also were relo- a few batches; others wanted to A Highland Heights plant that cated to the Highland Heights loca- audit the plant themselves. About grows crystals for use in laser man- tion. half of the plant’s customers made ufacturing and telecommunica- Four employees moved from the a trip to Highland Heights. tions expanded its production in California operations to the High- According to a news release, the the past year, bringing jobs and land Heights plant, and 10 more company added 30,000 square feet new customers to the area. were hired here, said Mr. Fowler, of manufacturing space in High- Gooch & Housego PLC, a UK- the CEO of Crystal Technology be- land Heights, bringing the grounds based optics and laser components fore the acquisition. to nearly 90,000 square feet. There manufacturer, began consolidating Before the relocation, the High- also were improvements to the its Palo Alto, Calif., and Highland land Heights location primarily was heating, ventilation, air condition- producing KDP and BBO crystals, Heights plants about a year ago and ing and electrical systems. All of the recently received final customer Mr. Fowler said. After the reloca- improvements cost Gooch & approval for the relocation. tion, the plant added lithium nio- Housego about $3 million. Mr. Jon Fowler, senior vice president bate and tellurium dioxide — two Fowler said that the company has- of acousto-optic and electro-optic types of crystals with entirely differ- n’t used all of the new space just products, said the company wanted ent growth methods. to be more efficient in terms of en- The crystals are used by busi- yet, leaving room for future growth. gineering and management. Six of nesses in the industrial and medical Mr. Fowler said small acquisi- Gooch & Housego’s eight manufac- laser manufacturing and telecom- tions have been a part of the com- turing sites are in the United States. munications industries, as well as pany’s history, and that Gooch & After the March 2011 acquisition in scientific research, Mr. Fowler Housego continues to look for addi- of a unit of a company called Crys- said. The telecommunications tional opportunities to expand. This tal Technology, Gooch & Housego industry is new to the Highland last acquisition allowed the compa- decided to vacate some space and Heights location because of the ny to be more self-reliant, as it uses put the crystal growth productions expanded products. some of the crystals internally. on the same site, Mr. Fowler said. Gooch & Housego had to get ap- Gooch & Housego’s company- Crystal growth had already been proval from its critical customers wide sales in 2012 were about $100 taking place at the Highland before it could truly move forward. million. The company does not Heights location for decades. The Customers wanted to make sure release sales figures for individual Palo Alto site remains open, but the that product quality would be the sites. ■

Volume 34, Number 13 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20130401-NEWS--5-NAT-CCI-CL_-- 3/28/2013 1:28 PM Page 1

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

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FOR MORE INFORMATION, CONTACT: Joseph J. Martanovic Senior Vice President 216-861-7200 COURTESY UNIVERSITY HOSPITALS www.ostendorf-morris.com This $17 million rehabilitation hospital in Beachwood is a joint venture between University Hospitals and Nashville-based Centerre Healthcare Corp. WHO TO WATCH UH finds strong partner for in Nonprofits freestanding rehab hospital one with that expertise,” said “But we are patient centered and Joint venture with Richard Hanson, president of Uni- not just trying to make a buck.” versity Hospitals’ community hos- Tonya Micheli, the new hospi- Nashville-based pitals and ambulatory network. tal’s director of business develop- “We didn’t have that expertise in ment, anticipates 75% of the hospi- ADVERTISE IN THE SECTION group adds muscle house, and we wanted to make sure tal’s referrals will come from AD CLOSE:$SULOMATERIALS DUE: April 16 we got the best seasoned team.” University Hospitals and its com- By TIMOTHY MAGAW As a result of the new hospital’s munity hospitals. The remaining CONTACT: Nicole Mastrangelo [email protected] opening, University Hospitals will 25% would be from the region’s shutter its 20-bed inpatient rehab other hospitals. [email protected] or 216-771-5158 The two-story, 53,000-square- facility at UH Case Medical Center The hospital is one of the few foot rehabilitation hospital that downtown, though plans haven’t freestanding rehab hospitals in quietly opened its doors last week yet been hatched for the space. Northeast Ohio and the only on on Harvard Road in Beachwood is Centerre Healthcare, meanwhile, Cleveland’s East Side. Summa expected to add significant clinical operates several freestanding rehab Health System in Akron, for in- muscle to University Hospitals’ hospitals throughout the country, all stance, maintains its own 60-bed enterprise without forcing the of which partner with larger health freestanding rehab hospital — a $25 health care juggernaut to make a systems. Modern Healthcare, a sister million joint venture with Pennsyl- sizable financial investment. publication of Crain’s Cleveland vania-based Vibra Healthcare that The $17 million facility, which Business, last year named Centerre as opened last year. The MetroHealth sits just down the road from Uni- one of the fastest-growing health System also opened a 67-bed reha- versity Hospitals’ Ahuja Medical care companies in the country; it has bilitation facility at its Old Brooklyn Center, is a joint venture between seen a staggering 388.1% growth in campus last year. University Hospitals and Nashville- revenue between 2006 and 2011. University Hospital and Cen- based Centerre Healthcare Corp., a A main reason for Centerre’s terre’s new rehab hospital offers for-profit company that specializes growth has been the growing need brain injury units, stroke recovery in freestanding rehabilitation for acute rehab services, given the programs and specialized gyms for hospitals. throng of aging baby boomers. brain injury patients. It also boasts Officials wouldn’t offer details on Also, rehab services are also only a specially designed bariatric rooms the financial arrangement of the small piece of many health systems’ for morbidly obese patients as well joint venture, but Richard Hanson, overall operations, and companies as outdoor training and recreation president of University Hospitals’ such as Centerre are helping fill that areas. Many of these features, ac- community hospitals and ambula- growing need. cording to Ms. Micheli, could only tory network, said it allows the sys- “In the end, we hope to have be housed in a freestanding facility. tem to grow its acute rehab services good patient outcomes and make a “We can be bigger,” Ms. Micheli without shouldering the full cost. little bit of money,” said Anthony said. “We can do a lot more being “We had to go out and get some- Felici, the new hospital’s controller. freestanding.” ■

Precision Metalforming Association names board chair

Bill Adler, president of Stripmatic ON THE WEB Story from Stripmatic’s growth strategy over the Products Inc. in Cuyahoga Heights, www.crainscleveland.com years. was named chairman of the board of “PMA has been such a big help to directors of the Precision Metalforming Association for our company,” Mr. Adler said. 2013. When Mr. Adler and his wife, Liz Adler, bought Strip- As chairman, Mr. Adler wants to expand the group’s matic Products, he said he needed a “crash course” in networking and development opportunities and increase metal stamping, since his background was in steel. The its international focus. Precision Metalforming Association helped him find the The Precision Metalforming Association has nearly 900 best value for his investments, discover the newest member companies, including both manufacturers and technology and stay up to date on safety regulations, suppliers to the metalforming industry, according to a he said. news release. The organization serves companies across Mr. Adler said he wanted to give back to the associa- the globe, but its headquarters are in Independence. tion after all of its help. He’ll serve as chairman for one Mr. Adler has been a member of the association for year after having served as second and first vice chair about 20 years. He joined after buying Stripmatic Prod- for the past two years. ucts in 1992 and said the association was “integral” to — Rachel Abbey McCafferty 20130401-NEWS--7-NAT-CCI-CL_-- 3/29/2013 4:09 PM Page 1

APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Cleveland software Startup’s search engine wins praise

By CHUCK SODER Fund. Last year, he received company is doubling [email protected] $15,000 from Bizdom. The accelerator owns an 8% stake in Kevin Latchford makes no bones Queryly and provides Mr. Chen about it: He loves the website with a cubicle at its office in in two key aspects search engine developed by a tiny Tower City Center. Cleveland startup called Queryly Bizdom also connected Mr. LLC. Chen with mentors at Aztek, UrbanCode’s sales soared in 2012, and it So do his colleagues at Aztek, a which is based just a few blocks Cleveland web development firm. away on West 9th Street. has twice as many employees as it did in ’11 And some of his clients are excited Queryly’s technology floored to start using the search engine on Mr. Latchford and his colleagues their websites. because it was so fast, he said. By CHUCK SODER COURTESY QUERYLY LLC “Half the company was The software puts a big emphasis He has showed the software to [email protected] A screenshot of Queryly’s search engine hired in the last year.” on providing visually friendly eight existing Aztek clients and A threat to UrbanCode’s core – Maciej Zawadzki, CEO, search results, and it’s so fast that products on its website. Links are expects four or five to become business turned out to be good for UrbanCode Mr. Latchford, Aztek’s chief operat- displayed with photos whenever Queryly customers within the next the company — and for downtown ing officer, gets frustrated when he possible, and customers can two months. Cleveland. Pro’s features are meant to help conducts searches on websites that change the layout of the drop-down The software costs $99 per The fast-growing software devel- developers create software piece by don’t use the technology. box to suit their style. month for the first 100,000 search- “I’ll go looking for something, oper has signed a seven-year lease piece, UrbanCode’s new products “Nobody really wants to con- able items on a website. Sites with and it takes forever,” he said. more searchable items will pay on a much bigger office closer to the help companies manage each of sume content when it looks like a The year-old company has found more, but they’ll receive negotiated heart of downtown. those pieces as they are tested and pile of text,” said Mr. Chen, who last an ally in Aztek, which in January volume discounts, Mr. Chen said. In a few months, UrbanCode’s released. year moved from New York to became the first reseller of Query- He applied to Bizdom after read- 50-plus local employees will move “It’s really bridging that gap Cleveland to join Bizdom Cleve- ly’s software. ing about it on the tech news web- into a 14,000-square-foot office in between development and land, a business accelerator started Mr. Latchford expects to sell a lot by billionaire Dan Gilbert. site TechCrunch. Mr. Chen also ap- the Halle Building, which is in Cleve- operations,” Mr. Zawadzki said. of it: The software could become Queryly has landed five cus- plied to other business accelerators, land’s Theater District. The new Demand for products that serve standard in “the overwhelming ma- tomers and is running pilots with but he picked Bizdom because it headquarters will be more than the so-called “DevOps” market is jority” of the websites Aztek builds, about a dozen more, including the was the first to accept him. twice the size of the company’s exist- “insatiable,” especially at large he said. blog for Quicken Loans, which was “I wanted to find a reason to quit ing, 6,000-square-foot office on the companies that create and test lots “We believe in it. We’re drinking founded by Mr. Gilbert. my full-time job and get it started,” eastern edge of downtown. of software housed on huge banks of the Kool-Aid,” he said. “When people look at it, they get he said. UrbanCode — which makes soft- computer servers, Mr. Utstein said. To get a sense of how the soft- it. But how to get people to look at Paul Allen, who manages Biz- ware used to automate and manage Many of UrbanCode’s customers are ware works, visit FamilyTravel.com, it in the first place? That’s actually dom, said Mr. Chen has “tremen- the software development process big, he said, noting that the compa- one of Queryly’s first customers. If what I’m focused on more,” Mr. dous technical skills” and relevant — desperately needs more space, ny serves three of the four biggest you type the letters “col” in the Chen said. entrepreneurial experience: About said CEO Maciej Zawadzki. banks in the United States. search box, the software predicts The downtown Cleveland resi- eight years ago the Beijing native The company is hiring in every “The complexity grows based on that you’re looking for information dent remains Queryly’s sole started another search company in department but has almost nowhere the number of servers and the about traveling to Colorado. Almost employee, but he expects that to China. to put new employees at its current number of applications. And that’s immediately, a drop-down box ap- change soon. The company over Some big companies already Euclid Avenue headquarters, across where we come in,” he said. pears with links to blog posts about the next three months aims to raise have sophisticated search engines from Cleveland State University, Mr. The free software that threatened the state and photos of idyllic up to $500,000 from investors, on their websites, but a lot of small Zawadzki said. AnthillPro not only pushed the mountain vistas. which would allow Mr. Chen to hire and midsize companies don’t, Mr. That’s because the size of Urban- company to create its DevOps prod- Founder Xin Chen describes some help. Allen said. Code’s staff almost doubled last ucts — it’s helping build demand for Queryly as a visual search engine In February, he raised $25,000 “At the lower end, there’s really year. The company, which has near- those products, Mr. Zawadzki said. for news sites, blogs and any com- from the Lorain County Communi- nobody who’s dominating,” he ly 60 employees nationwide, em- The free software has made it eas- pany that has a large catalogue of ty College Foundation’s Innovation said. ■ ployed 29 people at its headquarters ier for more companies to adopt at the start of 2012. And that’s up “agile” software development prac- from 16 in January 2009, according tices, which are a group of tech- to a list of the region’s largest soft- niques companies use to develop ware developers that Crain’s software faster, by writing and publishes annually. testing code in small chunks. But “Half the company was hired in sometimes operations employees in Bring morale up. About thirty stories. the last year,” Mr. Zawadzki said, de- the company data center aren’t scribing how desks at UrbanCode ready for that constant stream of just keep getting smaller. code. The company’s sales doubled in “So guess what? This (free soft- 2011 and 2012, and they could do so ware) actually helped create the again this year, he said, declining to problem that our next tool solves,” Mr. Zawadzki said. release dollar figures. New in 2013 UrbanCode wanted to stay down- Hot commodity town to remain close to restaurants and other amenities — and to avoid UrbanCode is one of the few com- scaring away employees who other- panies that understands the needs of wise could’ve end up with a longer employees on the operations side of commute, said chief operating software development, said Jim officer Cliff Utstein, whose position Duggan, a vice president of research was created last August. at Gartner Inc. The Stamford, Conn.- “We can’t afford attrition right based technology research firm in now. We just can’t,” he said. 2011 named UrbanCode one of six “Cool Vendors” in the software Building a better Anthill release management space. The growth has been fueled by Big companies that create DevOps some popular new products that software — such as IBM, Hewlett- were inspired by a threat to the com- Packard, BMC Software and CA pany. Technologies — haven’t tailored Since 2001, UrbanCode has sold a their products to handle agile soft- product called AnthillPro, which is ware development, Mr. Duggan said. Thrills bring every group together. Experience the thrill of the record-breaking, high-ﬂying, So UrbanCode and companies like it designed to help speed up the new GateKeeper. The excitement of the water rides. Not to mention the funnel cakes. A corporate process of developing software. could become acquisition targets, he A few years ago, however, a seri- said. outing to Cedar Point is unlike any other, with something for everyone to enjoy. Learn more at “Many of those companies and ous threat to that product emerged: cedarpoint.com/group-sales/corporate-programs or call 1-800-448-2428 today. Free “open source” software tools products will be acquired,” he said. designed to do many of the same No one can be sure whether that things started cropping up online. actually will happen. But one thing is AnthillPro was becoming a com- certain, according to Mr. Zawadzki: modity, and UrbanCode knew it. UrbanCode has to keep innovating, Thus, the company started develop- because one day there will be anoth- ing new products designed to help er threat that turns its new product companies manage the operations line into a commodity. side of the software development “That’s just the way the industry Opens May 11 process: Whereas many of Anthill- works now,” he said. “I get it.” ■ 20130401-NEWS--8-NAT-CCI-CL_-- 3/29/2013 3:26 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

THE CLEVELAND ORCHESTRA Branches: Expenses are being slashed FRANZ WELSER-MÖ ST MUSIC DIRECTOR continued from PAGE 1 BRANCH AGGREGATES (AS OF MARCH 27) Ohio, and the District of Columbia Bank 2007 2008 2009 2010 2011 2012 Current — nearly 7% of the 3,018 branches Huntington 426 666 651 658 696 733 765 the bank operated as of March 27, KeyCorp 966 997 1,005 1,034 1,059 1,073 1,099 according to SNL Financial, a FirstMerit 160 159 158 209 209 208 414 provider of financial data and PNC Financial 1,122 1,189 2,760 2,603 2,621 3,047 3,018 analysis. Pittsburgh-based PNC Fifth Third 1,218 1,356 1,359 1,363 1,370 1,369 1,369 expects to open 40 to 50 branches U.S. total 97,592 99,527 99,868 98,802 98,431 97,605 97,049 in the same time period, which means 2013 should be the first year ■ Current branch count represents the number of branches, adjusted for since 2010 that its number of openings and closings and completed and announced mergers and acquisitions. branches drops. (FirstMerit's, for example, includes the branches that would be added in the bank's KeyBank, too, will record a net announced acquisition of Citizens Republic Bancorp Inc.) drop in 2013, predicted Lisa J. Oliv- ■ Total branches are based on the Federal Deposit Insurance Corp. Summary of 4 PERFORMANCES ONLY! clevelandorchestra.com er, president of the bank’s Greater Deposit survey compiled every June 30. Cleveland district. The Cleveland- SOURCE: SNL FINANCIAL APR 11 —14 216-231-1111 based bank revealed in its annual report filed with the Securities and Ex- will remain important in maintain- “This has happened in the past,” change Commission that it will close ing and gaining new relationships Mr. Young added. “We have gone 40 to 50 branches footprint-wide in and product sales. through a period, maybe 15 years 2013, most of them in the second One speaker, Brett King — au- ago, when large financial institu- quarter of the year. It closed 19 “un- thor of “Bank 3.0” — reported that tions were closing branches … as a derperforming branches” in 2012. customers made an average 26.5 means of cost savings, as a means to “We really are in a fundamental- visits to a branch per year in 1995 improve earnings per share. In the ly changing environment of what and 3.2 in 2012, Mr. Valerian republic world, quarterly earnings per ❒ Sell was to what is,” Ms. Oliver said. called. Mr. King also reportedly pre- share are huge. Community banks “We would be foolish as a bank to dicts that one-third of the country’s can take a much longer view.” think about where banking has roughly 100,000 branches will close come from and where it’s going in the next few years. Serve yourself ❒ Starve (and) continue to open branches at “There’s no way,” said Gary J. Market demographics, branch the pace we have historically.” Young, CEO of Young & Associates foot traffic and loan volume, and a Forty to 50 branches represent Inc., of that prediction. His com- location’s proximity to other loca- roughly 4% of the 1,099 locations munity bank consulting firm in tions, all factor into which branch- KeyBank had as of March 27, ac- Kent sells branch feasibility analy- es are closed, bank executives said. It’s your choice. cording to SNL. A net decrease in sis and branch opening services, And alongside changes in branch 2013 would be the bank’s first year- among others. number, banks also are right-sizing over-year drop in half a decade, as “Things don’t happen that quick- — or right-training — their branch SNL’s numbers show Key’s branch ly. … Every prediction I’ve heard staffs. FirstMerit last year laid off all count has increased each year since like that since I started in banking of its assistant branch managers as at least 2008. in 1967 has not come true,” Mr. part of its “efficiency initiative,” and Nationwide, the number of Young said. KeyBank, too, this year is consolidat- branches has fallen every year since Still, Mr. Young said current con- ing two teller positions into one with 2010, from 98,802 as of June 30 of ditions — the need to increase cap- the intention of cross-training tellers that year to 97,049 as of March 27, ital, profitability and shareholder and other staff to become “more SNL reported. value — make it likely that “a lot” of multi-functional,” Ms. Oliver said. CALL TODAY, 440 575-7000 It’s not clear whether Northeast branches will be closed and not as Hired in August by Cortland Ohio branches will be among those many new ones built, especially in Banks, Danielle Cantrell is revamp- WWW.SALESCONCEPTSINC.COM that go dark in either PNC or Key’s urban areas. ing the way Cortland bankers inter- SELL MORE. case. “Banks are flush with liquidity,” act with people who come inside. What is clear is that branch trans- he said. “They’ve got more deposits The retail banking manager is train- actions are down as more people than they can effectively lend. Even ing employees to ask open-ended choose to bank almost exclusively if they lose a bit of deposits (be- questions to identify financial via the Internet and smart phones. cause they close a location), they needs and offer solutions. With the drop in transactions basically lose nothing on the mar- Even though Ms. Cantrell says SALT • SALT • SALT comes a drop in branch profitabili- gin on those deposits.” she herself wouldn’t step inside a ty and an onus on banks to maxi- Increasing instead bank if she didn’t work for one, she mize those in-branch interactions noted, “I still see that customers, • Water Softener • Industrial • Food they do have and to get in front of Huntington National Bank exec- when they really want to get down customers in other ways. utives intend to buck the trend, at to the nitty-gritty of their financial • Ice Melt • Sea Salt “We’re dealing as an industry least this year. business, they tend to go into a with changing customer prefer- The Columbus-based bank, brick-and-mortar branch.” ences,” Ms. Oliver said. which as of Dec. 31 operated 77 KeyBank’s Ms. Oliver agrees. Call For Pricing!! branches in Northeast Ohio, in- ‘Dead’ or ‘Alive?’ “Branches won’t go away, not Minimum Delivery: 1Pallet cluding 26 in Giant Eagle stores, has certainly in our lifetime,” she said. But that’s been the case for years. plans to open more than two dozen “There’s enough complexity in fi- Why now are the closures coming? in-store and traditional branches nancial dialogues and financial re- A lot of challenges have come to this year across its six-state foot- lationships that you want to sit with a head in banking, says Bill Valer- print and about three dozen in somebody.” ian, president and CEO of Liberty 2014, spokeswoman Maureen Mor- Plus, Ms. Oliver added, “Virtual Bank in Beachwood. rissey Brown wrote in an email. banks (don’t) give people a lot of se- “There have been so many Although the bank didn’t reveal curity. There are a lot of people who changes, and banks still are re- how many branches it will close in want to knock on a marble column quired to make a profit,” Mr. Valer- 2013 and 2014, Ms. Brown said ex- and say, ‘Good. My bank is safe.’ ” ian said. “If you can’t increase the ecutives expect a net gain in While bankers aren’t forecasting revenue, you have to cut expenses.” branches in 2013 and a net neutral the extinction of branches, they are Financial reform, particularly that position in 2014. predicting, and in many cases, al- which has squeezed overdraft and Huntington posted record profits ready building, smaller bank debit card swipe fee revenues, has in 2012 while continuing to grow its branches with self-serve technolo- made profitability tougher to branch network, noted Daniel gy. In fact, electronic, self-serve achieve, Mr. Valerian said. Still, he Walsh, president of the bank’s teller kiosks already exist in 15 noted that Liberty has no plans to Greater Cleveland region. branches that pilot a smaller close any of its three branches, even “What customers continue to branch design for Cincinnati-based though he says they are unprofitable. want is convenience and choice of Fifth Third Bank. KeyBank and Akron-based First- products and channels,” he said. One such pilot branch is under Merit Corp., however, announced “An essential piece of that strategy construction in Slavic Village. in 2012 large, cost-cutting initia- is great branch coverage.” When asked what he’s hearing of tives. Community banks, too, won’t the branches of tomorrow, James The viability of bank branches likely close lots of branches because Thurston, spokesman for the Ohio was debated during a session at the they’re not in a position to leverage Bankers League, said that teller Consumer Bankers Association con- technology to build their franchise lines will be phased out in favor of ference that Mr. Valerian attended in like larger competitors, Mr. Young more relaxed settings, and there March in Phoenix. In a “Family said. will be more alignment with the Feud”-type session, the “Dead Fam- “Big regionals … people know electronic banking needs of the 1-800-547-1538 ily” argued branches aren’t needed who they are,” he said. “(Small modern customer. as more people are “pumping their banks) are going to have to build a “Think touch screen displays, Salt Distributors Since 1966 own gas,” and the “Alive Family” ar- location and put some boots on the Wi-Fi services and espresso gued that personal contact is and ground. machines,” he wrote. ■ 20130401-NEWS--9-NAT-CCI-CL_-- 3/28/2013 3:17 PM Page 1

APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Browns finalize unique radio rights deal

rights deals. We They did, and The Fan, like its Team’s games will air on three Cleveland wanted some- top competition, believes there is thing that was plenty of interest in the Browns to stations in 2013, including competitors progressive and go around. expansive for “Cleveland is an intense sports WKNR-AM, 850 and WKRK-FM, 92.3 our fans. We town,” Mr. Herschel said. “Airing the met with Clear games allows us to super-serve those By KEVIN KLEPS Channel, ESPN fans. When we launched The Fan a [email protected] ON THE WEB Story from Herschel Karmazin and CBS, and Scheiner couple years ago, we were truly www.crainscleveland.com we were pretty determined to be the voice of the The Cleveland Browns have Tom Herschel, has similar feelings. clear about what we wanted to fans in Cleveland. With all of the pro- brought the city’s two all-sports achieve.” gramming that the Browns can bring select shows during the week. The “We’re really, really happy about talk radio stations together for a The Browns believe they have — a weekly coach’s show, a compre- new deal will result in more than this,” Mr. Herschel said. long-term partnership that is that with this creative agreement. hensive draft show — we believe we 1,000 annual hours of team pro- The Browns circulated requests believed to be the first of its kind in Their new partners, meanwhile, are doing that with this deal.” gramming, an increase of at least for proposals to “interested parties” the NFL. have landed their first huge Cleve- Mr. Scheiner was hired by the 400 from 2012. for a radio deal last October. The team on Thursday morning land pro sports deal. Browns in December after eight WKNR will air an official four- Clear Channel, which has radio made it official that its games will Mr. Karmazin and ESPN Cleve- years with the Dallas Cowboys — hour Browns pregame show, and rights for the Cleveland Indians and be featured on three radio stations land general manager Keith the last five as the team’s senior The Fan will take over for two hours Cleveland Cavaliers, eventually this season — WKNR-AM, 850; Williams likened the new agree- vice president and general counsel. following the game. dropped out of the running. The WKRK-FM, 92.3; and WNCX-FM ment to the NCAA men’s basketball He played an instrumental role in “Cleveland Browns Daily,” host- Browns, who were eager to expand 98.5. The latter two are CBS Radio tournament, which has its games the fan experience aspect during ed by Browns senior editor Vic their programming, received inter- affiliates, and WKRK, known as televised by CBS, TNT, TBS and the building of the state-of-the-art Carucci, will remain on WKNR, but est from the two Cleveland stations “The Fan,” is the chief rival of truTV. Cowboys Stadium. will expand from one to two hours with nothing but time for sports on WKNR, an all-sports talk station “It is an extremely unique deal to With his new team, he has each weekday. In addition, Browns their airwaves. owned by Beaver Dam, Wisc.- radio,” Mr. Karmazin said. “With the brought some creativity to the coach Rob Chudzinski will host a “We’re pretty excited about this,” based Good Karma Broadcasting. Mr. Scheiner said. “I think it is very NCAA tournament going on right radio contract. The Browns had been radio part- weekly coach’s show that will air on unique. I don’t know of any other now, it is easy to look at Turner and “Interest is always a good thing,” ners with Clear Channel since re- both all-sports talk stations. teams that have a radio partnership CBS working together, and realize Mr. Scheiner said of the Browns’ turning to the NFL in 1999, but the Jim Donovan and Doug Dieken with two all-sports stations in the what is possible. When I placed the fans. “We have to get good enough contract recently expired. When will continue in their play-by-play same city. call to CBS, I said, ‘If you guys and on the business side that we give the team sent out feelers for its and analyst roles, respectively, and “There was a certain objective we Turner can work together, we can them what they want. Now it’s our radio rights deal last fall, it was Jamir Howerton will return as the wanted to achieve with the radio definitely do something like this.’ ” job to deliver.” ■ approached with a unique idea by sideline reporter. In a phone inter- a pair of competitors. view with Crain’s, Mr. Scheiner said “It was their idea to come togeth- the composition of the pregame er,” Browns president Alec Schein- and postgame broadcast crews will er said of WKNR and The Fan. be announced at a later date. The “They have been seamless and ter- Browns will work with their new rific partners. Since we didn’t push partners in deciding the on-air tal- for this, we see no issues with this ent for both programs. going forward.” “I’m really excited,” Good Karma The Fan debuted in Cleveland on Broadcasting president and CEO Aug. 29, 2011, and immediately be- Craig Karmazin said in an interview came a primary challenger to with Crain’s. “It’s been a long time WKNR in sports talk. coming, so it’s really exciting that it Nineteen months later, the rivals will be a reality.” will be under the same umbrella on His FM competitor, and now Browns game days, in addition to partner, WKRK market manager Tucker Ellis continues to grow at rapid rate & ,

By MICHELLE PARK Mr. Healy, who also is now chair [email protected] of the mass tort and product liability $MFWFMBOE$POWFOUJPO$FOUFSt$MFWFMBOE 0) practice group, will oversee the www.GreatLakesTruckExpo.com Tucker Ellis LLP is marking its firm’s impending move of its largest 10th year in business this year with office in mid-June. a new Cleveland office and the pro- Tucker Ellis is one of the anchor motion of two attorneys who now tenants of the new Flats East Bank are tasked with steering growth in office tower and will move some 250 Ohio and California. employees there. Though its new Jeff Healy fills the newly created square footage will equal roughly position of partner-in-charge for the 108,000 it occupies at the old Ohio, where the law firm has offices Huntington building in downtown in Cleveland and Columbus, and Cleveland, the firm is decreasing the Bart Kessel is partner-in-charge for size of its library, in favor of digital California, where it has offices in resources, and is building every San Francisco and Los Angeles. office to be the same size, which will “We have grown so much,” said open up room for more attorney Joe Morford, firm-wide managing offices. partner. “They’re simply going to That’s necessary because Tucker Expo Program continue us on this path. I don’t Ellis has outgrown its current space, think our growth is going to slow. In said Mr. Morford, who declined to order for us to take advantage of the reveal the cost of the move. The Publisher opportunities … we need more of firm’s summer associates will start our strong people out there helping their summer in cubicles, not to accomplish the things that need offices, because space is so tight, GLTE will feature the latest advancements in the shale to get done.” Mr. Healy added. Tucker Ellis since its founding in “We just don’t have anywhere to play in Ohio as well as CNG and LNG technology. July 2003 has nearly doubled its put them,” he said. number of attorneys in Ohio to Tucker Ellis also has an office in roughly 120, according to firm exec- Denver that’s growing soon to sev- utives. In addition, its Los Angeles en lawyers from five, but that mar- office has grown to 29 lawyers from ket is not large enough to necessi- 11, and its San Francisco number tate a state partner-in-charge, Mr. Call Beth Trnka at 216-848-6526 or [email protected] stands at 14, up from 12 in 2003. Morford said. ■ 20130401-NEWS--10-NAT-CCI-CL_-- 3/29/2013 1:31 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION School daze ohn Kasich never will be known as the education governor. If anything, he has done more to damage primary and secondary education in J Ohio than any governor in recent memory. The pain Gov. Kasich has inflicted on school districts across Ohio began two years ago. That’s when he dealt with the $8 billion deficit the state faced in its next two-year general fund budget by shoving a big chunk of the problem down to the local level. The governor reduced the amount of money the FROM THE PUBLISHER state sent to local governments and school districts. Because of that tactic, he could proclaim that he didn’t raise taxes to pull off his magic act. But cities and schools statewide were sent scrambling to cut Truth gets in way of fracking furor staffs, reduce services and/or raise taxes in order to fill holes created in their own budgets by the loss of arry Goldwater rankled folks ter and that fracking waste has contam- I know that the truth is that state money. when he uttered these words inated and ruined drinking water in thousands of new jobs are The second blow came when the governor and when accepting the 1964 communities “all across the country.” Because we are publishing a being created, in Ohio and his colleagues in the Republican-controlled Legisla- Republican nomina- Btion to run for president: magazine, Shale, dedicated to other shale-rich states. BRIAN ture overreached in crafting Senate Bill 5 — their “Extremism in the defense of this new energy industry in attempt at limiting the power of public employee TUCKER Last month, a group of oil companies liberty is no vice. Moderation in Ohio, I’ve read a lot about this and environmental groups gathered in unions in contract negotiations with their members’ the pursuit of justice is no topic. I know it’s controversial, Pittsburgh and set 15 specific standards to school and government employers. virtue.” and that accidents have hap- protect the air and water, while shale oil Gov. Kasich touted the bill as a way to offset the Sometimes it seems we could pened — although in small pro- and gas continues to be found, drilled and damage caused by state budget cuts. He reasoned paraphrase those words to say portion to the amount of recovered. The certification standards go that putting caps on the benefits schools and cities that deception in defense of drilling being done. I know that beyond what current regulations call for, one’s own notions is perfectly safety is important to the could pay under their collective bargaining agree- and will apply to operations in Ohio, West fine. Especially if it means drillers, who have no interest in ments would save them money. And he may have Virginia and Pennsylvania, the areas of bringing in more donations. causing any problems for them the Utica and Marcellus shales. been right, though we’ll never know. There I was, driving to our offices last or their industry. It is a voluntary set of standards, and will That’s because Republicans in Columbus didn’t week and listening to “Potus,” the poli- I also know that unbiased climate put in place a certification process similar stop at focusing SB 5 on the benefits issue. Instead, tics channel on satellite radio. The host researchers have found that the discov- to that overseen by the Underwriters Lab- it became an all-out assault on labor that needlessly was talking with a young woman who ery of such cheap sources of natural gas oratories (UL) for electrical appliances. Ex- got into such minutiae as workplace rules. Outraged identified herself as the executive direc- has helped reduce noxious levels in our ecutives of Royal Dutch Shell, Chevron and atmosphere because so many electric unions revolted; so did voters, who decisively rejected tor of some clean energy group opposed Consol — all of whom were participants in to hydraulic fracturing. utilities are shifting from coal to cleaner SB 5 in a November 2011 referendum. the process along with environmental The host was ill prepared, and because gas as a power source. groups — applauded the unique “coming The governor and Legislature have been afraid to of that allowed this woman to say some I know that the truth is that thousands together” to help advance the economy take up the collective bargaining issue since, which outlandish things, like hydraulic fractur- of new jobs are being created, in Ohio while protecting the environmental assets has left schools and cities to fend for themselves in ing — often referred to as “fracking” — and other shale-rich states. This woman of Appalachia. contract talks. But that’s not the worst of their has been around only three or four years, claimed that only a few landowners were The next day, of course, the Sierra inaction. that the drilling goes down “three or four benefitting from this newfound energy Club denounced the process because it Two years ago, we urged Gov. Kasich and hundred feet,” that fracturing waste- source. Not so, and she should be is voluntary. I wonder how much that water is being dumped into drinking wa- ridiculed for such erroneous claims. goosed donations. ■ lawmakers to follow the recommendaton of a valuable study released in 2010 by the Brookings Institution and the Greater Ohio Policy Center. The study, “Restoring Prosperity: Transforming Ohio’s LETTERS Communities for the Next Economy,” said the governor and Legislature should appoint an education reorganization commission with two tasks: 1.) Warehouse District will be looking up to study the current costs of K-through-12 administration and to propose ways individual districts can ■ I am writing on behalf of the Historic WRITE TO US this year through several initiatives, Warehouse District Development Corp. including a $650,000 streetscape on the reduce those costs; and 2.) to develop a plan to Send your letters to: Mark Dodosh, editor, with regard to publisher Brian Tucker’s north end of West Sixth Street to be com- reduce by at least one-third the number of school Crain’s Cleveland Business, 700 W. St. column in the March 18-24 edition of pleted by mid-July; public art that will tell districts in Ohio from 611. Clair Ave., Suite 310, Cleveland, OH Crain’s Cleveland Business. the history of the Warehouse District; a Well, the idea has gone nowhere, with Ohio still 44113-1230 At the end of the piece, Mr. Tucker e-mail: [email protected] new banner program; and more flowers. awash in school districts. Meanwhile, tons of money wrote about the Warehouse District as a This is our way of rolling out the that could be going into the classroom continues to “marquee” neighborhood and the excit- investing approximately $2 million in welcome mat to our new neighbors in cover administrative costs. ing momentum that downtown is expe- roadway improvements to complement the Ernst & Young Tower and the visitors Gov. Kasich’s contribution to education is a riencing. We agree wholeheartedly! the investment in the Flats East Bank pro- to the Global Center for Health Innova- school financing plan that would cut state aid to We want to address the point that ject. By early May, the bricks along Main tion and Convention Center. puzzled Mr. Tucker and bring to light Avenue will be completely refurbished, David B. Hartt nearly half the districts as he plows more money that indeed the mess that is West Ninth and West Ninth Street will be repaved Board chair into charter schools. Street today is a part of downtown’s from Front Street to Superior Avenue. Historic Warehouse District Develop- Great. progress. Additionally, the Warehouse District’s ment Corp. The City of Cleveland is in the midst of sense of place will be further improved See LETTERS Page 11 20130401-NEWS--11-NAT-CCI-CL_-- 3/28/2013 3:46 PM Page 1

APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

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JOHNNY TSOU CAROLE HAYES CHOUKRI KHOUILI KIM PLATTEN Accelerating Aurora Parma Heights Parma Hinckley (a civil I hope it will bring more I think it’s going to affect I think it’s going to be a engineer for the success. visitors here and maybe parking. (But) it will be good idea, because we Global Center for bring some business good. … It will be good need that in Cleveland. … Health Innovation) for the small retail for the casino. Sometimes We have the Cleveland I lived in Chicago for seven businesses. I hope so. I wonder if that’s why they Clinic, which is one of the years before I moved put up the casino where top 10 in the United here. … It will make they did. States, and an idea like Cleveland a destination, the medical mart and similar to the Chicagos of convention center is a the world. very, very good idea for Cleveland and for the tourism in Cleveland.

➤➤ Watch more people weigh in by visiting the Multimedia section at www.CrainsCleveland.com.

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“Words in many domain names Amherst company sues Bedford Heights can and do communicate information as to the source or sponsor of competitor over purchase of domain names the website,” Amerisafe asserted in the lawsuit. “In fact, customers who By MICHELLE PARK agreement. CPA’s and Business Advisors do not know a domain name will [email protected] “SCT was vexatious in its prose- often guess that the domain name cution of the litigation, despite the is the same as the company’s name Amerisafe Services Inc. in fact that the subject-employee was or trademark. …SCT makes no Amherst has sued a Bedford Heights a close relative of the principals of attempt to disavow its relationship competitor, alleging that Safety Con- Amerisafe,” the lawsuit states. with Amerisafe, and intentionally trols Technology Inc. bought 11 do- The parties, which both provide main names that are “identical and safety training and consulting seeks to lure consumers away from confusingly similar” to Amerisafe’s services, ultimately settled. Amerisafe using the infringing trade name and has plastered its Then, upon researching addition- domain names to obtain a compet- own marketing materials on those al domain names in anticipation of itive advantage, albeit unfairly.” websites to deceive consumers and expanding and enhancing its online In its suit, Amerisafe alleges trade to harm Amerisafe’s profitability and presence, Amerisafe this year dis- name infringement, unfair compe- goodwill. covered that Safety Controls Tech- tition and cyberpiracy, and seeks This isn’t the first time one of the nology had purchased several inter- damages for economic loss it says it companies has sued the other. net domain addresses — among has suffered, as well as orders According to the lawsuit, filed them, amerisafeservices.com, requiring SCT to transfer the in- March 21 in U.S. District Court in amerisafeservices.net and fringing domain names to Cleveland, “Amerisafe’s relation- amerisafe.biz — on which SCT dis- Amerisafe immediately and direct- ship with (Safety Controls Technol- played its own marketing materials, ing the company to immediately ogy) has been strained from the the lawsuit says. discontinue all unlawful infringe- inception of Amerisafe, first culmi- “SCT does not redirect visitors to ment of Amerisafe’s trade name. nating in a lawsuit filed by SCT these sites to its own website, but Vince Ruffa, an attorney who against Amerisafe in January 2011 rather compounds the confusion in represents Safety Controls Technol- alleging that Amerisafe had the mind of the consumer by pur- ogy, said last Thursday, March 28, ‘poached’ an SCT employee who porting to be related to Amerisafe in that he hadn’t yet seen the suit and was bound by a non-compete some fashion,” Amerisafe alleges. therefore couldn’t respond. ■ What do Letters: Petition is on White House website You Value? continued from PAGE 10 amnesty program. That, in turn, al- gration. (Read the story here: Maybe it’s advice from accounting Solving Cleveland’s lowed my father to become a U.S. tinyurl.com/a37zhoo) citizen, a condition that also bene- In short, Messrs. Cellucci and and tax professionals to help your immigration problem fitted me: I went from being a per- Kelly argue that updating the NAF- ■ I wanted to comment on publish- manent resident in 1996 to becom- TA to allow citizens of the United business grow and thrive. er Brian Tucker’s March 25-31 col- ing a U.S. citizen in 2002. States, Canada and Mexico to work umn, “Mayor is behind the times As an Ohio resident, I applaud freely across borders would go a on immigration” about recent com- your bold and civic statements long way to solve our own immigra- ments by Cleveland Mayor Frank about immigration and the Global tion problems. I was so enthused Jackson. Cleveland initiative. In the spirit of with this idea that I created a peti- We Value that too. Common sense tells me that Mr. generating common ground, I tion in the White House website Tucker is right on the money. My would refer readers to a March 10 and invited others to do so: father, who came to New York City article penned by Argeo Paul Cel- http://1.usa.gov/YoOSwx 216.241.3272 or www.meadenmoore.com in the early 1980s, benefitted from lucci and Stephen R. Kelly in The Mario Chávez President Ronald Reagan’s 1986 Wall Street Journal regarding immi- Westlake 20130401-NEWS--12-NAT-CCI-CL_-- 3/28/2013 3:02 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

What is your greatest Board: Sales have grown 40% per year continued from PAGE 3 times as many Boogie Board dis- short notes or drawing. Now Kent Displays is getting plays as the existing machine, and it “This is a tool now. It really is business challenge? ready to make its first shipment to could be tweaked to run even faster, designed to replace your note- Walgreens, Dr. Green said. If the he said. The plastic cases that house book,” Dr. Green said. We have the back-to-school season goes well, the the displays are made in China. The existing Boogie Boards are team for that. chain could buy more for the holi- The new machine will help Kent among the most popular items in days, which is a big deal, considering Displays handle the peak holiday the toy and technology segment at Our client teams are focused that Walgreens runs about 8,000 and back-to-school sales seasons. gift retailer Brookstone, said Pauline on providing insight for your drugstores in the United States. Now, to meet those peaks, the com- Collins, the chain’s public relations greatest business and legal That trial and several others in pany has to make more Boogie manager. Brookstone, which was the works should go well, based on Board displays in advance, which the first chain to sell the Boogie challenges along with foresight the product line’s past perfor- ties up cash, Dr. Green said. He Board in stores, also sells variations for the issues on the horizon. mance, Dr. Green said. If shoppers added that the company — where of the products through Staples. can see the product, many will pick employment increases from 100 to “Not many people can walk by a it up, try it and buy it, he said. 125 as it prepares for the holidays — Boogie Board without drawing “We know the metrics. The prod- got some orders last fall that it something,” she said via email. uct sells. It’s very difficult for me to could fill because it didn’t have point to a trial that was not success- enough Boogie Boards on hand. A ‘conversation starter’ ful,” he said. The new machine should help pre- The growth of Kent Displays McDonald Hopkins LLC Now that Kent Displays has built vent that problem. could have rippled effects in North- 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 relationships with so many retail- “We definitely turned down east Ohio, said Byron Clayton, vice ers, Dr. Green said the company is business last year,” Dr. Green said. president of cluster acceleration at Carl J. Grassi, Shawn M. Riley President , Cleveland Managing Member preparing for a big 2013. NorTech, a nonprofit that works to Sales have grown an average of Watch out, notebooks help local technology companies Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach 40% per year since 2009, Dr. Green Another factor should help drive grow. mcdonaldhopkins.com said. He would not provide revenue increased sales next year: Kent Dis- One of Dr. Clayton’s tasks is to figures or say whether the company plays in August plans to release a build a cluster of flexible electron- is profitable. However, in an August smaller Boogie Board that costs less ics companies in the region. Kent 2011 story by the Bloomberg news than $20, which Dr. Green de- Displays not only helps NorTech service, Dr. Green projected that scribed as a “magic price point” strategize, but the company also sales for that year would reach $21 where the product becomes an lends a hand when it can, he said. million, up from $9 million in 2010, impulse buy. For instance, Kent Displays helped Local Real Estate when the Boogie Board first A month later, the company a Cleveland startup called LorkTech appeared in stores. expects to release the $99 Boogie create a prototype of an electronic To keep up with demand, the Board Sync, which allows you to shelf display designed to give roll-to-roll machine that prints the save your work and wirelessly send retailers an easier way to alter Financing product line’s flexible liquid crystal it to a computer, a smart phone or a prices listed in their aisles. display runs nearly 24 hours a day. tablet. The Sync will replace the And Kent Displays’ reputation Kent Displays is about to expand Rip, which had to be plugged into a helps NorTech make connections that capacity. Over the next month computer to transfer saved files. in the flexible electronics industry, or so, the company plans to install a That wireless capability, com- Dr. Clayton said. second machine at its 40,000- bined with the Sync’s larger display, “It’s a conversation starter. It square-foot headquarters just south will give it a broader range of uses opens the door to talk about the of Kent, Dr. Green said. That than the original $30 Boogie Board, other capabilities that we have machine will be able to print four which typically is used for writing here,” he said. ■

ATTRHSSMWH¥O\OGMOT\W\M=\E=HDO\==UZIHSDKMOWHSUPHOURH\=HSU\UH Bar: Company pledges to add workers DOU\GU&DO\UN\OKDRPDRHMOKDRP\UMDOu continued from PAGE 3 Mr. Kennedy told a county council The company will freshen up and Jonathan Mokri The company also is moving into committee last Tuesday, March 26, lease out its existing building. 440.526.8700 the more advanced radio frequency that the company has been experi- The council committee favorably identification end of the business. encing growth at between 20% and recommended a loan with a [email protected] XXX GESGVSD GDP Its customers run the gamut and 30% annually and has been hiring 15-year term at a 2% interest rate. include Fortune 100 and 500 com- steadily for the last several years. The The primary lender on the expan- SM panies, said company president expansion is a response to the growth sion is Charter One Bank. ,RDWMFMOT DPPHRGM\=(D\O"MO\OGMOTMO,\RUOHRSNMIXMUNRH\ RHFMU1OMDOS Sean Kennedy. of automated inventory tracking, and The Western Reserve Fund is For instance, Technology Recov- particularly to customers who want Cuyahoga County’s $100 million ery Group provided Lord & Taylor to extend the useful life of their scan- economic development pool that — a department store chain with 49 ning equipment to seven to 10 years seeds 11 loan programs, from mod- HALEMAGAZINE.COM stores largely in the northeast Unit- — well beyond the three to five years est microloans to million-dollar- ed States — with refurbished hand- of their computer equipment. plus capital expansion lending. News, insight and analysis of shale drilling in Ohio held barcode scanners for its distri- The company currently employs Technology Recovery Group’s loan bution center. It also is providing 55 people. Mr. Kennedy has is called an accelerated-growth S maintenance and repair services for pledged to the county as part of the loan, designed for small and mid- off-warranty scanners of Parker loan agreement that the company size businesses in targeted indus- Hannifin Corp., a Cleveland-area will add 15 to 20 people a year for tries with high-growth potential. manufacturer, extending the useful the next three years. Larry Benders, the county’s life of older technology from a vari- Sales have more than tripled director of development, said he ety of equipment manufacturers. from $4.5 million in 2008. wants growth-oriented businesses “Anything that scans, reads or Most of the new hires will be not to worry about the details of the prints bar codes, or mobile devices repair technicians, but Mr. Kennedy fund but to come to his department that capture (information),” Mr. said he also will hire account execu- and let his staff figure out the best Kennedy said, describing the busi- tives and warehouse workers. Mr. way to help them. ness in a nutshell. “We’re more into Kennedy said the jobs will pay “The fund is the primary invest- the industrial grade environment, $25,000 to $45,000 annually. ment tool we have to get deals warehousing, and now we’re get- With the new building, the com- done,” Mr. Benders said. “Just tell ting into iPad- and iPhone (-based pany’s footprint will grow to 65,000 us what you need. We have lots of equipment).” square feet from 25,000 square feet. tools.” ■

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APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13

WHAT IGNITES YOU? EDUCATING PHYSICIANS, PHARMACISTS AND HEALTH CARE RESEARCHERS

Nordson Corp. has provided $40,000 in scholarship support to the 2012-13 annual campaign of The Ohio Foundation of Independent Colleges. COURTESY NORDSON CORP. neomed.edu BRIGHT SPOTS

Bright Spots is a period feature in Ackerman Ackerman & Dynkows- Corporate America Pageant. Crain’s highlighting positive business ki, a condemnation and eminent The honor is given annually to a #CRAINSCIO developments in the region. domain law firm that represents woman who excels in achieving a Presented by To submit information, email Scott landowners exclusively, is expand- balance between raising a family Suttell at [email protected]. ing into Ohio with the opening of and building a business. an office in Cleveland. “Being named Ms. Mompreneur ■ Resilience Capital Partners of Darius Dynkowski, a partner gives me the incredible opportuni- Cleveland was a winner in the with the firm, has become licensed ty to take the message to women Co-Presented by: seventh annual Turnaround to practice law in Ohio and will across the country that they can fol- Awards, sponsored by The work from the Cleveland of- low their dreams while following 7XHVGD\$SULOSP M&A Advisor and given fice. their hearts,” Ms. Martinez said in a earlier last month in “Eminent domain statement. /D&HQWUH:HVWODNH Palm Beach, Fla. has emerged as a She received the award at the The February 2012 prominent issue for Rosen Centre Hotel in Orlando, Fla. *DODDQGILQDOLVWLQIRUPDWLRQ acquisition of Vista business owners in Bonitas International this year is ZZZ&UDLQV&OHYHODQGFRPFLRWL[ Pro’s Heavy Duty Di- Ohio, particularly gas celebrating its 10th year in business. vision by Thermal So- storage properties and ■ Cocktail Reception Sponsor: Social Media Sponsor: Sponsored by: lutions Manufactur- farm owners,” the Nordson Corp. said it provided ing, an affiliate of Resilience, firm said in a statement. $40,000 in scholarship support to was named a winner in two “We made a strategic deci- the 2012-2013 annual campaign of categories: “Divestiture Deal of the sion to open our Cleveland office, The Ohio Foundation of Indepen- Year” and “Industrial Manufactur- where we can serve as a resource to dent Colleges. ing and Distribution Deal of the those facing eminent domain.” Cumulative giving to the OFIC by Year” (between $10 million and $50 Ackerman’s new Cleveland office Nordson — the Westlake-based million. is located in the Fifth Third build- maker of precision dispensing Resilience Capital was chosen ing at 600 E. Superior Ave., Suite equipment for applying industrial from more than 120 nominations 1300. liquid and powder coatings, adhe- and more than 300 participating sives and sealants during manufac- ■ COSO Media, an Internet mar- companies to receive the award, turing operations — now exceeds keting, social media, web develop- according to David Fergusson, $800,000 during the past 25 years. ment and search engine optimiza- senior managing director of The The company has designated its tion company in Hudson, said it M&A Advisor. support specifically to provide has expanded by adding Artemis The awards event was held in scholarships to students from Creative Group, a print design and conjunction with the 2013 Dis- northern Ohio majoring in math, direct marketing agency. tressed Investing Symposium that science, engineering or a business- featured more than 150 profession- Terms of the combination were related area. It currently providing als participating in forums led by not disclosed. scholarships to 34 students enrolled more than 40 turnaround, media, COSO Media said that in the past in OFIC-member colleges and uni- academic and political guests. few years, its has received an increase in print design requests versities. ■ National Interstate Insurance from existing clients. OFIC is the primary corporate Corp. of Richfield, a provider of “We base this company off of the and foundation solicitation organi- passenger transportation insur- needs of our clients, and by not zation for 34 Ohio independent ance, said it has partnered with colleges and universities. Transit & Paratransit Co. of Hud- offering print design we weren’t ful- ■ son to offer its customers a compre- ly meeting those needs,” said Global Lighting Technologies, hensive driver training course. Matthew DeWees, president of which makes products for LED- Transit & Paratransit, known as COSO Media, in a statement. “So based systems that illuminate flat TAPTCO, will offer the course to many of our current clients were panel displays, keyboards and oth- National Interstate customers at requesting print materials that it er electric equipment, has retrofit- “preferred pricing,” the Richfield did not make sense not to hire a ted its North American sales and company said. full-time print designer.” engineering headquarters in TAPTCO developed the training The firm said it then approached Brecksville with LED ceiling lights. program, which includes transit Andrea Kiger, founder of Artemis. The company said in a news re- and paratransit operator develop- The addition of Artemis to COSO lease that in addition to providing ment courses as well as a trainer Media “was a no-brainer,” accord- its employees with more attractive certification process, to ensure that ing to Mr. DeWees, because the lighting that has less glare, it is drivers “are fully prepared to pro- companies already had a business “starting to reap the energy-saving vide the safest and most efficient relationship through collaboration benefits that LED lighting pro- services,” according to National on several projects. vides.” Interstate. ■ Kimberly Martinez, CEO of Global Lighting Technologies Since 2003, National Interstate Bonitas International, a Geauga said that on average, the new light has marketed insurance for public County company that produces fixtures — which incorporate the transit and paratransit operators and distributes fashion ID jewelry company’s edge-lit light guide tech- through its Community & Medical such as the BooJeeBeads brand of nology — use 65% less power than Transportation unit in Mechanics- beaded lanyards and badge reels, the units they have replaced, signif- burg, Pa. was named “Ms. Mompreneur icantly reducing the power con- ■ Bloomfield Hills, Mich.-based 2013,” a division of the Ms./Mrs. sumption of the entire facility. ■ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

20130401-NEWS--14-NAT-CCI-CL_-- 3/28/2013 1:40 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

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JASON MILLER The Global Center for Health Innovation, shown in the foreground, is expected to officially open Oct. 14, coinciding with the start of the 11th annual Cleveland Clinic Medical Innovation Summit. An investment in Cleveland’s health Anticipation builds as $465 million project on city’s Mall nears completion

By JAY MILLER INSIDE: A look inside the Global Center for Health schedule to be ready in July for the 2013 [email protected] Innovation and the convention center. Pages S4-5; National Senior Games, and the Global Cen- The potential impact on various types of local ter’s grand opening is slated to correspond ooking out the window of his office at businesses. Pages S6-9; Are convention centers with its hosting Oct. 14 to 16 of the 11th annual City Hall, Cleveland Mayor Frank really economic drivers? Page S10 Cleveland Clinic Medical Innovation Summit. Jackson described the impact he hopes Years beyond the opening blitz of the facili- the new Cleveland Convention Center Mall. “And then, this is the key — the lakefront. ties, though, it may be difficult to assess the Land adjacent Global Center for Health “A developer will look at this here, and tangible impact of the largely underground Innovation will have on his city’s downtown. then you’ll see some retail and entertainment tradeshow complex and the accompanying “It will move people to the restaurants of the down there,” he said, referring to the undevel- Global Center. That’s because, like sports Warehouse District and East Fourth Street be- oped waterfront behind City Hall to the north. arenas, no hard and fast metrics exist to cause people will be there,” he said pointing to The convention center portion of the county quantify their success. the exhibit hall taking root under the sod on the sales-tax funded $465 million project is on See HEALTH Page S-12 Center can be big selling point for city

“And she just looked at me and said, Leaders are spreading word about new kid on block ‘Cleveland — who knew?’ ” Exactly his point. By MICHELLE PARK seen some hotels. As one of the people working to sell [email protected] It was Mike Burns’ job to show Carrie Aber- Cleveland to shows and conferences that nathy the city of Cleveland, and he was curious. haven’t had reason to consider the city for hey’d toured the convention center, “I said, ‘So, what do you think?’ ” Mr. Burns, years, even before its old convention center JASON MILLER eaten lunch at The Greenhouse the senior vice president of convention sales closed, Mr. Burns is confident that the tallest The convention center is slated to open in July. Tavern, indulged in baseball-sized and services for Positively Cleveland, recalled hurdle the city must clear isn’t the need for Signage already is starting to be installed. T dessert at Colossal Cupcakes and of last year’s tour. See CENTER Page S-2

ON THE WEB: For expanded coverage, including photo slideshows, maps and video interviews, visit www.crainscleveland.com/medmart 20130401-NEWS--16-NAT-CCI-CL_-- 3/28/2013 3:16 PM Page 1

S-2 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 Center: 76 conventions, trade shows and meetings are booked continued from PAGE S-1 ON THE WEB square-foot grand ballroom and “It’s hard to get in and out of apart, Mr. Gahl said, is its adjoining more hotel rooms or its frigid win- 35 meeting rooms. the car when you have elaborate Global Center for Health Innova- ter weather. For smart phone “The hot trend in the conven- costumes on,” Mr. Collins said. tion, which will cater to and attract “Right now, our greatest com- users, scan this QR, tion industry right now is meeting “Now that Cleveland has a new the more lucrative subset of med- petition is the lack of knowledge or “quick response” rooms,” Mr. Johnson said. “Every- facility that appears to meet a lot ical meetings and conventions. about our city,” he said. “If you code, with any QR one wants breakout space.” of our criteria, we’re interested,” “Attendees tend to be doctors, haven’t been to Cleveland in the code reader to view With the convention center set to he added. physicians and surgeons, there- last six months and you’re a meet- a video tour of the convention space open in July for the National Senior fore (they) have a greater dispos- ing planner, you haven’t been to and Global Center. Games, its sales team is touring the Haves and have nots able income,” he said. Cleveland.” facility multiple times a week with In the same conversation, Chris The inn thing Following her tour, Ms. Aber- prospective clients. As of mid- Gahl points out reasons why Cleve- nathy, director of education, train- would say Cleveland is in a position March, it had booked 76 conven- When asked what they perceive to pull business from competing land’s new center cannot compete ing and events for Practice Green- tions, trade shows and meetings. with the one he sells, and he identi- their city to lack, Cleveland con- health, a Virginia nonprofit cities, among them Columbus, Pitts- Beyond the convention center’s vention center and visitors bureau burgh and Milwaukee. But other ob- fies ways in which other centers organization of hospitals and four walls, there are other, new cannot compete with Cleveland’s. executives say there’s a need for a medical suppliers seeking to be- servers — including a man paid to selling points — a vibrant restau- new, large hotel. The convention promote another Midwestern city For one, Cleveland doesn’t have come more sustainable, booked rant row on East 4th Street, the the space for certain, larger shows center’s Mr. Thompson also noted and event planners — say it, too. Horseshoe Casino Cleveland, the Cleveland for the group’s 2014 that the Indiana Convention Center that one detractor for certain local For one, this convention center aquarium — plus the mainstays, events is limited parking. CleanMed event. It will be the & Lucas Oil Stadium can host in its th is the new kid on the block. including three major sports With roughly 4,000 hotel rooms event’s 11 year and its first in 566,000 square feet of contiguous “The thing that meeting profes- teams and PlayhouseSquare. between downtown and Universi- Cleveland, and should draw exhibit space, said Mr. Gahl, sionals ask us is, ‘What’s new? What The number of hotels and ty Circle, the convention center roughly 1,000 attendees. spokesman for Visit Indy, the sales is neat out there that we haven’t ex- restaurants within walking dis- usually can count on 1,500 to “I was just so awestruck by the and marketing arm for Indianapo- city,” Ms. Abernathy said. “It’s not perienced before?’ ” said Dave tance of the center helped con- 1,800 rooms for its use, Positively lis. And no other convention center known as a destination city, and it Scypinski, senior vice president for vince Ms. Abernathy to bring Cleveland’s Mr. Burns said. The in the nation, he asserted, has more really is. It’s an experience, and ConferenceDirect, a Los Angeles- CleanMed 2014 to Cleveland, as ideal new hotel, officials say, hotel rooms connected via climate- it’s an experience that I wanted based firm that sources and plans did the city’s affordability. would be one that adds 800 or controlled walkway. my attendees to have.” meetings for some 1,200 corpora- Kelly Collins also cited Cleve- more rooms and is connected to After years of being out of the tions and associations. land’s affordability, plus accessibili- But, he noted, “building a LEED- the convention center. running for events that draw hun- During a tour of the convention ty (namely, the proximity of the air- certified facility certainly will catch “The bigger the group is, the dreds and thousands of people to center in early March, against the port), as reasons why the city is an the eyes of meeting decision makers. sooner they notice the lack of a large other cities annually, downtown soundtrack of whirring tools and attractive candidate for an event. “When you bring in a conven- convention hotel,” Mr. Burns said. Cleveland has a hand to play beeping vehicles, center Mr. Collins also is interested in the tion or meeting … you’re impact- That’s why he and others have a again, and the people leading spokesman Dave Johnson delin- number of haunted houses in North- ing a destination, and many meet- keen eye trained on the pending tours through the city and its eated the amenities that might not east Ohio. As president of Colum- ing planners want to make sure sale of the Cleveland Metropolitan soon-to-open convention center pop out to the uninitiated. bus-based MidOhio Productions, he their footprint is eco-friendly and School District headquarters across believe it’s a strong one. The exhibit hall, which mea- would be: The group hosts the annu- carbon-neutral and sustainable,” from the convention center. “We’re finally in a position to sures 230,000 square feet, has ceil- al Midwest Haunters Convention for he continued. Drury Hotels of St. Louis sub- compete,” said Craig Thompson, ings that are high enough and thousands who own, operate or par- The Indiana Convention Center mitted the top bid for the property director of convention sales for columns separated by enough ticipate in haunted attractions. is not LEED (Leadership in Energy and has plans for a Drury Plaza the Cleveland Convention Center. space to allow for sporting events His organization in past years and Environmental Design)-certi- Hotel there. The school board is such as volleyball. Tractor-trailers had considered and decided fied, nor actually is Cleveland’s, New kid on the block expected to vote to accept or re- can turn around in and use 17 against the I-X Center, namely be- yet, though it’s pursuing LEED sil- ject the company’s $4.8 million It’s predictable that people paid loading docks. There’s an on-site, cause of the lack of hotels within ver certification. bid on April 9, a district spokes- to sell the new convention center state-of-the-art kitchen, a 32,000- walking distance, he said. Also setting Cleveland’s center woman said. ■ 20130401-NEWS--17-NAT-CCI-CL_-- 3/28/2013 1:30 PM Page 1

APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-3 THE KEY EVENTS WHAT THEY’RE SAYING TIM HAGAN ON THE WEB ■ The former Cuyahoga County commissioner was involved For smart phone users, Complex has been scan these QR, or “quick in talks about a new convention center as early as 1982. response” codes, with “In the ’80s there was a concern that in order to be a any QR code reader to first-class city, a major league city, you had to have view video interviews with long in the making major league sports and major league convention the following: facilities in order to compete. By JAY MILLER MORE ONLINE TIM HAGAN [email protected] For a full timeline of major milestones JIM BENNETT he idea for a showroom for in the project, go to: ■ Mr. Bennett signed on as MMPI’s senior vice president in medical technology, first www.crainscleveland.com/timeline April 2012 when the project was in a sort of turnaround. Now, called a medical merchan- he believes, the project is on the right track, though it may Northeast Ohio was with a mart dise mart, had been gestat- still lack a key component. that brought together the latest Ting for decades when in 2005 Cleve- and greatest technology in health land Clinic CEO Toby Cosgrove put “I think if we have a convention center hotel where care,” he recalled recently. in a call to Chris Kennedy, then the county administration now is we will have cured our JIM BENNETT His call brought Mr. Kennedy to president of Merchandise Mart principal product deficiency. That’ll be a very big step.” Properties Inc., the operator of Cleveland twice in 2005 with Chicago’s Merchandise Mart, a Cuyahoga County Commissioner massive building designed with Tim Hagan, a friend of Mr. ED FITZGERALD Kennedy’s very political family, permanent showrooms for vendors ■ Mr. FitzGerald inherited the convention center project joining the second meeting. “Tim of furniture and home furnishings. when he became Cuyahoga County’s first executive, taking Hagan really picked up the ball Dr. Cosgrove had first heard the over the reins of county government from Tim Hagan and his and ran with it,” Dr. Cosgrove said. term “medical mart” when he was colleagues on the county commission. in Saudi Arabia more than four At the time, one more study ED FITZGERALD years earlier, though the idea had group, called the Convention “I believed that Cleveland did need a new convention floated around Cleveland since the Facilities Authority, was trying to center; I liked the idea that there was going to be a early 1980s. In Dubai, Dr. Cosgrove find a way to build and finance a medically based facility because I thought that that played to our met a businessman who said he new convention center. strengths in terms of the portion of our economy that was growing, which was considering a development in Over the years, various mayors, our medical sector certainly has been.” Dubai that would include a hotel county commissioners and indepen- attached to a building where he dent panels proposed new conven- could show off his firm’s medical tion centers at various places along DR. TOBY COSGROVE and health care products. the lakefront, behind Tower City ■ The CEO of the Cleveland Clinic was one of the early DR. TOBY COSGROVE But it wasn’t until 2004, when he Center and on the Mall site of the boosters of linking a health care focus to the project. was being interviewed for the job underground Cleveland Convention as the Clinic’s CEO, that Dr. Center that had been built in 1964. “Building in health care right now is going on all over Cosgrove gave the idea its first The rest is history, so to speak, the world. The industry is in a state of constant building public exposure. with these movements setting the and refurbishing. So I think there is a big opportunity “I suggested that one of the ways stage for the eventual ground- (for the Global Center) to begin to attract medical we could stimulate the economy of breaking of the complex in 2011. ■ related industries.”

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S-4 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 A look inside the Convention Center and Global Center for Health Innovation

Global Center for Grand Ballroom Health Innovation Concourse Meeting Rooms Meeting Rooms Exhibit Hall C Junior Ballroom Exhibit Hall A Exhibit Hall B

A work in progress From lifting a portion of Lakeside Avenuenue by less than half an inch to completing a 6,000-cubic-00-cubic- yard concrete placement for the medicaldical mamartrt over an almost 24-hour period, the buildingbuildingildif of the Global Center and convention hhallall has been For more construction no easy task. Still, steps were takenn to makmakee images, sure construction was completedd scan this in the most efficient way possible,le, QR code. such as by using computer modeling,deling, or building information modelingling (BIM)(BIM),, along the way, according to John DeWine of Turner Construction Company. Construction started January 2011, and it is slated to be completedmpleted by June 1 -- three months ahead of schedule. Atrium & Global Center for Health Innovation Convention Center All levels shown

Exhibit Hall A Convention Center events 52,941 square feet A detailed list of events planned at Loading Dock Kitchen the center can be found at

Ballrooms www.crainscleveland.com/convention.

A B C As of last week, 76 events were booked at the new 10,513 10,958 10,722 Exhibit Hall B square square square Cleveland Convention Center, which is slated to Exhibit Hall C feet feet feet 88,369 square feet 84,618 square feet officially open with the start of the National Senior Games in July. The 750,000-square-foot convention center includes 225,000 gross square feet of Class A exhibit space, which means 90-foot spacing between columns and 30-foot ceilings. It is divisible into three exhibit halls, one measuring more than 50,000 square feet and two larger exhibit halls All levels shown measuring more than 80,000 square feet apiece. It also features 17 truck bays and more than 30 = Concourse Level = Exhibit Level = Ballroom Level = Prefunction area meeting rooms. Meeting Rooms Meeting Rooms Meeting Rooms

= Public Restrooms Layout by Lauren Rafferty Photos by Jason Miller Space renderings courtesy Vocon Inc. 20130401-NEWS--19-NAT-CCI-CL_-- 3/28/2013 3:00 PM Page 1

APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-5 Global Center for Health Innovation

Floor 2: Proposed GE Healthcare space (above, below) GE Healthcare plans to use its space at the Global Center to take visitors on a journey through the eyes of a patient. Displays will aim to show how technology affects patients across the care continuum. Atrium (right) Each floor of the Global Center follows the same general layout (as seen below) with an open atrium space in the middle. The center’s windows look out to the Mall and convention center.

Floor 1: Proposed ‘Home of the Future’ (right) Officials hope to set up a ‘Home of the Future’ on the first For more floor, featuring a proposed variety of vendors renderings, in settings such as a scan this bedroom, bathroom QR code. and kitchen.

Global Center tenants

More detail on the tenants, along with their plans for the space, can be found at www.crainscleveland.com/tenants.

Each floor of the 235,000-square-foot Global Center for Health Innovation has a specific theme: Health and Home, first floor; People, Patients and Caregivers, second floor; Clinical Spaces, third floor; and Health Care IT, fourth floor. As of last week, project spokesman Dave Johnson said the Global Center was 80% occupied. The announced spaceholders to date at the center are GE Healthcare, the Cleveland Clinic, Johnson Controls, Philips Healthcare and the Healthcare Information and Management Systems Society. Mr. Johnson referred to the Global Center during a recent tour as the ‘Epcot of health care,’ noting that ‘there will be something of interest for everyone to see.’ 20130401-NEWS--20-NAT-CCI-CL_-- 3/28/2013 2:35 PM Page 1

S-6 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 LOCAL IMPACT Many businesses may benefit HOTELS AND HOSPITALITY By TIMOTHY MAGAW ADDING IT UP fueled by the expectation of a need [email protected] for rooms once the complex ■ 17: Full-size truck bays that opens. ith the new convention service the convention center The former Crowne Plaza hotel center and medical on St. Clair Avenue, for instance, is mart slated to open To that end, a throng of Cleve- undergoing a $70 million conver- their doors this year, land-area institutions in the hospi- sion to a Westin and is slated to Cleveland’sW visitors will need more tality industry are hoping to take open in 2014. JASON MILLER than just a place to rub elbows advantage of the surge in out-of- Also, the Cleveland Metropoli- The Cleveland Metropolitan School District headquarters could become a hotel with their peers. town traffic that will likely accom- tan School District headquarters after Drury Hotels was the winning bidder in a recent auction. They’ll need places to sleep and pany the Global Center for Health building, which is a stone’s throw eat. Just ask said Dave Scypinski, Innovation and convention center from the new convention center, senior vice president for complex. stands to become a hotel after ConferenceDirect, a Los Angeles- “I think it’s going to have a very Drury Hotels of St. Louis was Proud to have performed the concrete work at based firm that sources and plans positive impact on the hotel deemed the winning bidder in a meetings for some 1,200 corpora- industry,” said David Sangree, recent $4.5 million auction for the The Medical Mart with Turner Construction tions and associations. president of the Hotel & Leisure building. “A city is only as good as three Advisors consultancy in Lake- Already-established downtown things,” he said. First, a convention wood. “Cleveland hasn’t been in hotels also appear to be bracing center of some size; second, the convention market too much for the convention center opening. supporting hotel rooms; and third, over the past 10 years, and this The Ritz-Carlton has bolstered its attractions. new facility should allow us to get its staffing in anticipation of the “It’s a chicken and the egg kind more aggressively into that convention center’s opening and of thing,” he said. “If the center is market. They’re certainly going to the other development occurring too small, the hotels don’t help need hotel rooms.” in the city, though Lynn Coletto, because you can’t fit the group in, There are a handful of hotel the hotel’s director of sales and or if the center has enough (space) construction projects already in marketing, declined to provide a but you don’t have enough hotel the works, and Mr. Sangree said figure. rooms, you suffer the other way.” much of that activity is likely See HOSPITALITY Page S-9 • On-Time Performance • Quality Workmanship AUDIO/VIDEO, LIGHTING AND EVENT SERVICES • Customer Satisfaction By CHUCK SODER will turn to when it needs a particu- [email protected] ADDING IT UP lar service, said Ron Willner, direc- ■ 1,700: People who can dine at tor of event services for the facility. ob Leon had little time to round tables in the ballroom He’s looking for good taxi drivers, 216-642-1114 talk when contacted for limo drivers, valet services, security www.northcoastconcrete.com this story two weeks ago. new convention center complex. companies and general service That’s what can happen Colortone Staging and Rentals contractors, who help oversee the 6061 Carey Dr., Valley View, OH 44125 Bwhen your company is selected as of Solon will be the complex’s pre- management of events. a preferred vendor at Cleveland’s ferred vendor for managing light- A few vendors have exclusive ing and audio/visual equipment, contracts. Colortone will be the making it one of many local ser- complex’s only preferred A/V ven- vice providers that will get a sales dor, though companies that hold boost from the new facility. events at the complex — which in- Winning the preferred vendor cludes the Global Center for status will have “a tremendous im- Health Innovation — may pick an- pact” on Colortone, said Mr. Leon, other company, Mr. Willner said. who owns the company. Three out-of-state companies “We are hiring. We are spending that have exclusive contracts will money,” he said before hopping hire full-time employees locally, onto another call. he said. Levy Restaurants of Chica- Other local businesses will reap go will serve food; Edlen Electrical benefits, too. The convention cen- of Las Vegas will provide tempo- ter complex is compiling lists of rary utility services; and Aramark preferred vendors that the complex See SERVICES Page S-9

Together, the sky’s the limit for Cleveland. Cleveland Hopkins International Airport is proud to be Cleveland’s gateway to The Global Center for Health Innovation. With more ﬂights and non-stop destinations than any airport in the region, CLE is your portal to the world. Plus, CLE provides easy highway access and direct rail service from the terminal to downtown. Together, we will welcome the world to Cleveland.

www.clevelandairport.com 20130401-NEWS--21-NAT-CCI-CL_-- 3/28/2013 2:35 PM Page 1

APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-7

LOCAL IMPACT See Pages S-8 and S-9 for more businesses affected MARKETING AND TOURISM

By TIMOTHY MAGAW “At the end ADDING IT UP [email protected] of the day, ■ 76: Events booked at the hen the Global Center we are about convention center for Health Innovation advancing an and convention center industry.” And here’s an opportunity for complex opens for local entrepreneurs: The region business,W a number of local tourist – David Gilbert has a lack of destination Host an event your guests will never forget! destinations also are looking to president and management companies, which take advantage of what they CEO, Positively Cleveland help travelers get from one place MAKE YOUR RESERVATION TODAY! expect will be a hefty surge in to another and find things to do in out-of-town traffic. and the other investments in the area, said Michele Clark, downtown, we’re in a strong posi- Positively Cleveland, the city’s program manager for the Shlensky tion to build on each other’s prod- convention and visitors bureau, is Institute for Event and Meeting uct and bring more visitors, more expected to lead the charge and Planning at Corporate College. events and more economic impact serve as the liaison between the “They’re coming to this confer- to Cleveland.” city’s guests and its anchor tourist ence, but they also want to go to Moreover, Positively Cleveland institutions, including the Rock the Rock Hall. They may also want Want to treat your staff to a tour? is growing its enterprise both in and Roll Hall of Fame and to go horseback riding,” she said Special rates and packages available Museum, the Cleveland Indians, terms of staffing and its role in the for groups of 20 or more. city as it braces for the complex’s Lynde Vespoli recently the Greater Cleveland Aquarium launched Discover My Cleveland, and its other destinations. opening and the surge of other which she bills as a “one-stop The idea is to use Positively development already happening shop for event planners, meeting Cleveland to point Cleveland’s in the city. The organization, for planners, group leaders that are visitors to the city’s attractions. one, is in the midst of a re-brand- bringing people to a city that they “We’re kind of viewing each ing effort, which will be “geared to don’t know anything about.” In other as partners,” said Positively the potential traveler and getting addition to tours, Ms. Vespoli Cleveland president and CEO them to Cleveland,” according to David Gilbert. “At the end of the Mr. Gilbert. helps with travel logistics. day, we are about advancing an “It is just more than having a “I have the experience, and I industry. There are a lot of those good experience at the convention have the contacts,” she said. “I folks who directly benefit by center,” he said. have relationships with vendors growing the travel and tourism The organization also has and the attractions. I can get them industry. There’s very much a beefed up its sales staff focused on the tickets they need. My goal is to rising tide that raises all boats.” bringing major conventions and bring people to Cleveland and Rock Hall president and CEO meetings to town. The new when they’re here and show them ■ Greg Harris had similar senti- convention center, Mr. Gilbert how wonderful the city is.” Call: 216-515-8420 ments, noting that “between the said, gives Positively Cleveland Visit: rockhall.com/rent-the-rock Global Center for Health Innova- an “enormous amount of Chuck Soder contributed to this tion, the new convention center ammunition” for its pitch. story.

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S-8 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 LOCAL IMPACT SMALL BUSINESSES FACILITIES AND MEETING PLANNERS By RACHEL ABBEY McCAFFERTY ADDING IT UP By CHUCK SODER ADDING IT UP [email protected] [email protected] ■ 58: First-time SBE subcontractors ■ 4: Number of football fields that orking on the Global working with prime contractors ndependent meeting planners would fit on the convention center floor Center for Health might have reason to get “All we need is that one chance Innovation helped excited about the opening of In the same vein, Tony Prusak, to show what we can do,” she said. Gertrudis (Trudy) the new convention center senior director of convention sales RamosW and Jose L. Ramos Jr. get Michael Ballard, president of Icomplex this July, but owners of at the new facility, said luring into RWJ Wiring Inc., said the project their company off the ground. other local facilities that host town those groups that bring with got his 3-year-old Euclid company In fact, after the Ramoses signed events do not, according to some them new out-of-town money is “a lot of exposure.” that first contract with Bedford in the event planning industry. the aim, not cannibalizing shows After meeting with Zenith at a Heights-based electrical and The complex — which includes from the nearby I-X Center. technology contracting company networking event designed to the Global Center for Health Inno- “They fly into our hub,” Mr. Zenith Systems LLC to provide introduce prime contractors to Prusak said. “They take a taxi or rent prospective small businesses, Mr. vation — will replace a convention temporary power and lighting to SUBMITTED PHOTO a car. They stay in a hotel. They eat Ballard received a $150,000 sub- center that was eclipsed by the center, they quit their full-time Jose L. Ramos Jr. is seen working at and drink in our restaurants and our contract for exterior lighting. Since facilities in other cities long ago. jobs and began to focus solely on the Global Center. His business, Alter- bars. They buy gifts for their kids. At then, RWJ Wiring already has Being able to market a big new Alternalite Electric Inc. nalite Electric got a boost from work- the end of the day, it’s all about About two years later, the North contracted with Zenith on two facility could lead to a 25% sales ing on the project. selling more cheeseburgers.” Olmsted business is going strong. other unrelated projects. boost for GhostLight Productions LLC, said Deb Hermann, CEO of They have three full-time employ- year, are new, minority- or Arlene Anderson, president and the event production company in ees, two part-time employees and a woman-owned or have been chief executive officer of Minority “Now we have a sexy, new, Shaker Heights. variety of opportunities in the works. discriminated against in some way Business Solutions Inc., said she large space to sell to our “I don’t know how else we in the past, Mr. Johnson said. was pleased to see so many new re- She loves that the convention clients.” would have done it,” said Mrs. The businesses also must be lationships come out of the project. center will have “a big beautiful Ramos, president and chief located in Cuyahoga County and Minority Business Solutions is ballroom” that overlooks Lake – Deb Hermann CEO, Ghost Light Productions LLC executive officer. have been in existence for at least one of two diversity consultant Erie. Many of her clients are inter- Alternalite is one of 169 small a year, according to the county’s companies that partnered with ested in having events in the business enterprises that have website. Turner Construction Company center, she said. Convention centers in other worked on the medical mart and About 34% of the project’s part- and Merchandise Mart Properties “Now we have a sexy, new, large nearby cities could lose business, convention center project since its nerships were the first between the to oversee the project. Along with space to sell to our clients,” she said. too, said Dave Lutz, managing di- inception, an important statistic to prime contractors — the main North Coast Minority Media LLC, Other local meeting planners are rector of Velvet Chainsaw Consult- Dave Johnson, the project’s director company working on that part of the group put together the events excited about the complex, too, ing, an event consulting business of public relations and marketing. the contract — and the subcontrac- that connected small businesses said Michele Clark, program man- in Aurora. He described how the Close to 32% of the companies tors. Mr. Johnson said the prime and prime contractors. ager for the Shlensky Institute for Ohio Music Education Association that have worked on the complex contractors were encouraged to get After the construction part of Event and Meeting Planning at will hold its annual conference at are small business enterprises, out of their comfort zones and the project was set, Merchandise Corporate College. the complex in 2015, 2017 and well above the contracted goal of work with companies with which Mart Properties still turned to “It’s what everyone is talking 2019. Columbus and Cincinnati 25% between the county, the city they had never partnered. This Minority Business Solutions for about,” she said. will host the group on the off years. and Merchandise Mart Properties, opened up more opportunities to local referrals on other jobs, such Experient Inc. of Twinsburg Cleveland State University’s the Chicago firm that oversaw the the small businesses. as cleaning services. plans relatively few events in Wolstein Center, meanwhile, project, Mr. Johnson said. “We’ve created so many new Ms. Anderson said that she Northeast Ohio today, partly focuses more on sporting events Many of the businesses that relationships,” Mr. Johnson said. thought getting small business because of the city’s outdated and concerts, so it won’t often qualify for Cuyahoga County’s Mrs. Ramos said that the differ- owners involved in such a large convention center. compete with the convention center, said Ron Willner, who small business distinction, which ent accreditations for minority- project would create a sense of That is likely to change once the managed the university’s event depends on the total number of owned businesses and women- pride throughout the community. convention center opens, said Ken facilities before becoming event employees a business has or the owned businesses help small “You put a little bit of yourself in Sien and Michael Guerriero of gross revenue it brings in each companies like hers get their start. that project,” she said. ■ services director at the convention Experient. center complex in November. While the complex will benefit Older facilities might have trou- Experient, it likely will lure ble competing with the brand new business away from other area convention center, Mr. Willner said. facilities, Mr. Sien said. Cleveland State was “bombarded The John S. Knight Center in with calls” when its new student Akron could lose a few smaller center opened in 2010, and the Independence Excavating, Inc. events, but the I-X Center “is going same thing is happening at the to take a pretty hard hit,” he said. convention center now, he said. Proud Contributor of Cleveland’s Growth However, I-X Center president “Everyone wants to be a part of Brad Gentille says that the facilities this facility. People flock to Since 1956. serve different markets. The I-X newness,” he said. ■ Center focuses on trade shows and consumer events that come to the Michelle Park contributed to this Cleveland Medical Mart & Convention Center Project 2011-2013 facility for its “sheer size,” he said. story.

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APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-9 HOSPITALITY: continued from PAGE S-6 center’s launch. Jonathan Bennett, vice president In addition, she said the hotel Join us at the Convention Center prides itself in being able to and executive of Red Restaurant THANK YOU TO THE CONVENTION CENTER accommodate the international Group, the steakhouse’s parent FOR OPENING THEIR DOORS TO CLEVELAND this summer to be part of an company, said he was “hopeful travelers who likely will frequent AND THE NATIONAL SENIOR GAMES. event with more competitors than the medical mart portion of the that the medical mart will greatly the Olympics! complex given that its staff is contribute to business at our fluent in about 20 languages. upcoming downtown location.” Restaurateurs also are poised to Unlike the Beachwood location, Sponsored by: take advantage of the business trav- the downtown steakhouse will be eler. Red, The Steakhouse, which open for lunch and dinner and will already has locations in Beachwood boast facilities for private meetings

COUNTY GA O ■ O F H O A H Y and luncheons. I U O

and another two in Florida, plans to C

O U

F O

A Y

T C N O

open a new downtown spot at East U 4th Street and Prospect Avenue Michelle Park contributed to this around the time of the convention story. SERVICES: continued from PAGE S-6 The Beachwood-based media of Philadelphia will provide room production and staging business conversion and cleaning services. expects to help set up a permanent The number of people they hire display for a tenant in the Global could be significant. For instance, Center for Health Innovation. Aramark plans to have about 50 The display will include a employees on site when the hologram-style illusion based on complex opens, said spokesman the same technology used to make David Freireich. it look like the late Tupac Shakur Other event services companies was rapping on stage at last year’s July 19 – August 1 will reap benefits even if they’re Coachella music festival. not on a preferred list. “When people see what we did Cleveland2013.com The complex will have at least for this tenant, they’re going to “some impact” on EventWorks want to know who did it,” Mr. Inc., said owner Joel Solloway. Solloway said. ■ SeniorGames1

@SeniorGames1 ON THE WEB For expanded online coverage, including photo slideshows, maps, video interviews, event schedules and a list of tenants, go to: www.crainscleveland.com/medmart 20130401-NEWS--24-NAT-CCI-CL_-- 3/28/2013 1:31 PM Page 1

S-10 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 Convention centers don’t always meet city’s needs “Rely on the By SCOTT SUTTELL 35% from 2000 to 2011 as new strength of your [email protected] centers rose in cities including ” Hartford, Conn.; Pittsburgh; and co-workers he opening of a new Raleigh. convention center in any At the same time, though, atten- city — let alone Cleveland, dance at trade shows was down where the event has been a nearly 2%. (The time period does Tlong time coming — is a big deal. include two huge events — the Join over 100 companies in the Ohio Savings Bank Tug-of-War tournament at the But is it a good deal, economically Sept. 11, 2001, terrorist attacks and 2013 Cleveland Corporate Challenge! speaking? The case isn’t completely the 2008 economic collapse — that For information, call Hermes Sports & Events at clear. depressed business travel generally 216-623-9933 or visit www.hermescleveland.com Cities build convention centers and might not necessarily be in large part because they offer illustrative of long-term trade opportunities for economic gain by show trends.) attracting visitors to town to spend Professor Sanders said that money in stores, hotels, restaurants, “virtually every city of any size "If you need time, I sell it". casinos and anywhere else that builds and later expands conven- convention visitors choose to pass tion centers, but the level of Everything from Personal errands for you and your their time. Big shows provide an business they’re doing is” about the same as 20 years ago. employees to corporate event planning immediate economic return to COURTESY GREATER RALEIGH CONVENTION businesses around the convention AND VISITORS BUREAU In Charlotte, N.C., for example, center. The convention center in Raleigh, which built a convention center in • Corporate and individual • Over 15 years experience 1995, backers had forecast the cen- contract concierge service For instance, according to the N.C., has made an annual impact of at Greater Raleigh (N.C.) Convention least $30 million, and likely more, ter would produce more than • For executives and since it opened in 2008. 525,000 hotel-room bed nights a • Highly recommended employee incentives and Visitors Bureau, the organization estimates convention and year. Yet a Charlotte Observer 52 organizations, discounts totaling trade show groups have provided at analysis found that in fiscal year almost $569,000, with the average least a $30 million annual economic 2011, it produced just 142,000 "Christy does a great job handling all of my executive being 54% off the list price of impact to Raleigh since the opening room nights, and its exhibition arrangements. I can always count on perfection from VIP" (Raleigh Convention Center) of that city’s center in 2008. halls were used less than 40% of rooms.” the time. Al Scott, Principal, The NRP group The number is likely higher when The practice is used, they note, Mr. Ducate said the business factoring in non-convention or because there is heavy competition trade show attendees who use the model for convention centers in the convention center industry remains based on the facilities INSURED AND BONDED center. nationwide, and the center needs But it’s not without a cost. In a functioning as “loss leaders,” in to offer the discounts to fill its which local government bonds are Please visit report for the John Locke Founda- space. tion called “Raleigh Convention paid off primarily by hotel-occu- http://vippass.us The Raleigh center, the report pancy taxes generated by higher Center: Throwing Good Money found, thus highlights a central after Bad,” co-authors Michael San- room occupancy. dilemma in the industry. That often can work for commu- Or call Christy at era and Kevin Munger argued that, “The glut of convention center for instance, in a period from July nities in the short term. But a 877-772-8984 space has forced each city to make recent Brookings Institution report to December 2011, the convention a choice: provide even more center “awarded discounts to 40 of noted that the overall convention taxpayer-funded discounts and marketplace is “declining in a subsidies to organizations to use manner that suggests that a recov- its convention center or risk ery or turnaround is unlikely to having an empty one,” Dr. Sanera yield much increased business for and Mr. Munger conclude. any given community.” Start the competition Changing times Douglas L. Ducate, president Professor Sanders agreed that and CEO of the Dallas-based the challenge for the industry, and Center for Exhibition Industry by extension for cities hoping to Research, said the convention boost their economies with new business is “more competitive convention centers, is that the field today” than at virtually any point has “an uncertain future” due to since he entered the industry — technology and trends in business more than four decades ago. in which budget-conscious Deborah Sexton, president and companies and associations aren’t CEO of the Chicago-based Profes- holding as many conventions or sional Convention Management sending as many employees or Association, agreed that the com- members to them. petition is fierce, but cities that In a survey of nearly 400 aren’t keeping up in the conven- corporate meeting planners last tion center game “find themselves November, trade journal Successful losing big pieces of business that Meetings found that “association they miss when it leaves.” meetings, trade shows (and) Cleveland — with a new center consumer/marketing events” all that is attracting attention in the showed more companies planning industry and booking events at a reductions than increases in the fast clip — currently benefits from number of events for 2013. being fresh in convention bookers’ For instance, 16.4% of respon- minds and from having up-to-the- dents said they were planning minute space conducive to the more trade shows this year needs of modern trade shows. compared with 2012, but 22% said Ultimately, observers say, all they were planning fewer such convention centers face a events, and 61.6% said there was challenge of supply and demand, no change. in which the supply of new exhibit Similarly, 14.4% of respondents hall space in convention centers is said they were planning more outpacing the demand for such association meetings in 2013, space. while 20.5% were planning fewer Heywood Sanders, a professor of and 65.1% reported no change. public administration at the The big area of growth? Virtual University of Texas at San Antonio, meetings. Nearly 53% of meeting and a well-known skeptic about planners said they were planning the economic value of convention more of those for this year, centers, estimates that convention compared with just 8.4% who were center exhibit hall space increased planning fewer. ■ 20130401-NEWS--25-NAT-CCI-CL_-- 3/29/2013 1:27 PM Page 1

APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-11

Moniker was changed in BUILDERS GLASS & PANEL, LTD

Glass • Storefronts the name of innovation Windows • Doors Architectural Aluminum Products Global Center was convincing choice “The name requires us to Curtain Walls • Composite Panels behave in a certain way MBE/SBE Certified in survey sent to a variety of groups and run the center in a By RACHEL ABBEY McCAFFERTY ADDING IT UP certain way.” [email protected] ■ 324: Windows on the medical – Jim Bennett Proud mart building senior vice president, Merchandise he Global Center for Mart Properties Inc. Health Innovation is more ■ 515: Precast façade pieces on than just a name: It About 600 survey requests were Contributor the medical mart exterior reflects the standards that sent in February to a variety of Tits tenants are supposed to strive the center. groups, such as prospective toward. It more brought the idea of a tenants, Cleveland Clinic of the Those at the center will have an shopping center to mind, he said, physicians and the Cuyahoga “obligation” to stay fresh, to live than a collaborative health care County advisory panel, which up to its title, said Jim Bennett, space. included the leaders of local health Medical Mart senior vice president at Merchan- The center wants its work to care systems, area civic leaders dise Mart Properties Inc. “Global” make a difference across the and county council members. represents the reach the center’s globe, and the medical community More than one-third of the surveys work will have, and “innovation” didn’t respond well to the came back, and the results were Project describes what tenants will be “diminishing” or “commercial” clear. doing. Each part of the name was medical mart name, he said. The full name — Global Center the result of months of conversa- Merchandise Mart Properties, for Health Innovation — received 5620 Broadway Ave. #301 tions, and each part was carefully the Chicago-based property about 65% of the vote, Mr. thought out. developer and management com- Johnson said, and each word was Cleveland, OH 44127 “The name requires us to pany behind the project, worked the clear winner in each of its behave in a certain way and run with Cleveland-based public individual categories. Phone: 216/261-4980 the center in a certain way,” Mr. relations firm Dix & Eaton to There was no consensus on Bennett said. create and send out a detailed what the tagline should be, so that Fax: 216/261-8172 Mr. Bennett joined the project online survey about the name is still a work in progress. It will almost a year ago and quickly change, said Dave Johnson, recognize the center’s location by Website: buildersglassandpanel.com realized that the medical mart spokesman for medical mart and including the word “Cleveland,” name didn’t capture the plans for convention center. Mr. Johnson said. ■

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S-12 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013 Health: Global Center a key part of project

continued from PAGE S-1 Locally, the Cleveland Clinic and local supporters will argue, goes Even so, the mayor is not the University Hospitals also have pub- beyond the building itself, to its only person who is tying his or her licly committed to space in the fa- positive impact on downtown and hopes to the 1 million-square-foot cility. As of last week, there were six the community. complex taking shape on announced Global Center tenants; The business people — and doc- Cleveland’s Mall. officials report there are more than tors and hospital executives, if 80 other prospects, half of which are everything goes as planned — who A World Class City... The medical mart prescription from outside Northeast Ohio. attend conventions and visit the Part of the reason for officials’ Many in Northeast Ohio believe Global Center will inject millions A World Class Facility... confidence in the overall project is the Global Center has the potential of dollars into the local economy the Global Center for Health Inno- to impact the region far beyond by occupying hotel rooms, eating vation — which still often is even the most expansive economic in restaurants and buying “made World Class People. referred to by its original name, development role usually attrib- in Cleveland” knickknacks for the the medical mart. uted to convention centers. folks back home. The first of its kind, the facility is Dr. Toby Cosgrove, CEO of And it’s considered profitable Micro Systems Management is proud to be intended to serve as a magnet for Cleveland Clinic and an experi- because the community doesn’t health care professionals and meet- enced hand at building and outfit- have to use that money to build a part of the Technology Support Team for the ings, ultimately helping to support ting hospital buildings, has been a the streets where convention-go- its convention center neighbor. driving force behind its creation. ers live or educate their children. Global Center for Health Innovation and The Global Center itself is a He believes that once the high- County Executive Ed FitzGerald four-story complex designed to tech hospital vendors — like com- said he will be looking for signs Convention Center. display the future of health care mitted tenants GE Healthcare and that the new convention center is through participating partners Philips Healthcare — invest in bringing a burst of energy to with global reach and reputation. showcasing their products at the downtown and the broader region. The themes of each floor are: Global Center, it will become a “Have you seen spinoff busi- www.msmctech.com 440.892.9997 Health and Home (first); People, magnet for professionals who de- nesses develop around the con- Patients and Caregivers (second); sign and build health care facilities. vention center? Have you seen Clinical Spaces (third); and “I can imagine the day you rental prices go up in any way as a Healthcare IT (fourth). could attract hospital architects result of this new project?” he The largest of the announced around here,” he said. “You think asked rhetorically. “Is the number tenants to date, in terms of space, about everything that goes into of individuals coming downtown is Chicago-based Healthcare building a hospital, one-third of and filling it up on a daily basis Information and Management the cost is tables, chairs, filing cab- and on weekends growing?” System Society, which initially will inets, window treatments, sinks. Not without critics occupy 25,000 square feet on the “I would hope that someday, There are hard-core critics na- building’s fourth floor. instead of doing what I’ve had to do — go to Germany to look at tionally who question investments equipment, go to Alabama to look in convention centers, pointing to at equipment, go to Michigan to the viability of the overall meetings look at equipment — that it would industry. They say with convention be in one location here and you attendance down, price-cutting is could get a tremendous amount of common, making it impossible to stimulus around that,” he said. meet financial projections. Let’s work together to bring more Still, other analysts put conven- A whole new ball game tion centers in a broader context As for the convention center and are more optimistic. portion, David Gilbert of Positively Adam Jones, director of the meetings to Cleveland. Cleveland, the regional conven- hospitality and leisure practice of tion and visitors’ bureau, says the PricewaterhouseCoopers LLC, is average conventioneer who flies one of those. He sees a generally into Cleveland will put $1,200 into positive result for a community if ith $2 billion in visitor- the local economy during a three- its convention center brings to night stay. town for a business meeting people related infrastructure MMPI Inc., the Chicago-based who leave with a good impression Wdevelopment, firm that will manage the complex, of the city and might return for a Cleveland is becoming a is predicting it will attract 300,000 family vacation or other reason. visitors annually to 60 conventions “Most communities choose to dynamic meeting destination. and 100 smaller health care meet- look at (their convention center) ings a year, amounting to $330 from a broader point of view,” he Joe Pulizzi, Founder of Content million in spending. said. “What is the activity generat- “For a decade and a half we ing for greater community in Marketing Institute, will showcase have functionally been out of the terms of fiscal and economic im- Cleveland by bringing his large convention business,” Mr. pact on the tourism industry and Gilbert said. “It was largely small company’s 2013 national what is it doing in terms of percep- groups that could fit into a hotel. tion, for future leisure tourism or meeting home. And, Positively Now it’s a whole new ball game.” corporate travel and even corpo- Cleveland is here to help. However, the overall value, its rate relocation?” ■

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APRIL 1-7, 2013 SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS S-13

This aerial view looks south over the Mall. In the foreground is Mall C with Lakeside Avenue to the south. In the middle is Mall B, which is bordered by St. Clair Avenue to the south. Public Auditorium is to the east of Mall B, and the Global Center is to the west. A convention center entrance is at the north end of Mall B. The Cleveland Metropolitan School District HQ is to the east of Mall A.

COURTESY TURNER CONSTRUCTION COMPANY Mall location presented challenges, opportunities Nesco Resource is the largest national staffing firm By STAN BULLARD ADDING IT UP people will cut across the Mall. headquartered in North East Ohio. Call today to see [email protected] “They’ll be able to cross the ■ 12.5: Acres of Green space Mall without having to walk on how we can help you improve your staffing experience. vast green field has taken on Malls B & C wet turf,” Mrs. Nichol said. form in downtown ■ 111: Trees on the promenade “We were brought in to format Cleveland the past two those big bones and the mall and Nesco has been awarded Inavero’s Best of Staffing for years as the Global Center protrudes where no building decide how to integrate the pop up forA Health Innovation and of the convention center to the both Client and Talent for 2013. This is the second year should be, and effectively usurps Cleveland Convention Center public space for private use.” Mall,” she added. “This is the first in a row that Nesco has received this award and it is a recast two-thirds of the city’s Mark Reddington, a partner at layer and the community can add open-spaced Mall. LMN Architects of Seattle who led to it over time.” testament to our quality driven processes. First conceived in 1903 as part design on the project, said the Anthony Coyne, chairman of the of the Group Plan spearheaded by result aims to marry the current Cleveland City Planning Commis- Daniel Burnham, the Mall essen- project’s needs and technology sion and the newly-selected Group tially is a long park running with the public space. Plan Commission formed to im- through the city’s core surrounded “The question of standing in prove the Mall and Public Square, by public buildings. the middle of the Mall and seeing salivates over that opportunity. For Shannon Nichol, the found- the lake has been a problem since “We have the base layer,” Mr. ing partner of GGN of Seattle, which the (1903) plan was made,” Mr. Coyne said. “It’s a starting point.” www.nescoresource.com www.talentalley.com served as landscape architect for Reddington said. The city of Cleveland-formed the project, “It was such a draw for To add the Lakeside entrance, Group Plan Commission hopes to us to have a second chance at this builders erected a bridge-like span soon form a nonprofit corporation really important landscape to the on Mall B’s north side, with grass to undertake fundraising from city and the world.” atop it and glass walls below it to multiple sources for more than The second chance part comes form the convention center’s main $90 million of improvements to about because she saw it as a entry. the Mall, bridges connecting it to chance to fix what time had done “You get to connect the activity the lakefront and a more people- to the property. in the building and the public friendly Public Square. “When I first went to Cleveland realm in a way which is better for That will be the mechanism for and asked how to get to the Mall, everyone,” Mr. Reddington said. enhancing the Mall with children’s people said, ‘What mall? What Robert Brown, Cleveland city playgrounds, volleyball and shopping mall?’ I found people planning director, said he had basketball courts and “urban referred to it as Mall A or Mall B or hoped children could sled on the rooms,” which will divide portions Mall C,” Mrs. Nichol said. new decline, but it’s not quite that of the Mall avenues to make them “It was a tragedy it was no steep. However, planners imagine friendlier. longer seen as one mall because it youngsters enjoying a sideways Piping was installed underneath had been so divided,” she said. roll down the hill. the Mall to accommodate future additions, including a potential Uphill battle Just the start water feature on Mall C. However, the complex pattern In place of that clear middle What would Burnham think? Proud to be the of marrying an enlarged conven- view, Mrs. Nichol said the project tion center underneath Malls B used the new convention center Mr. Coyne downplays the instal- and C forced an epic change in the roof — which really is an expanse lation of the arch on Mall B, noting supplier of middle of the Mall. Putting the of grass — to correct the way that it was not criticized at public main entrance to the convention East and West Mall drives had meetings. He looks forward to the Plumbing & HVAC center on Lakeside Avenue’s south been chopped up over time. For Mall becoming a people place side meant lifting the sloping example, a pedestrian connector again. He believes the redo can be Mall B 20 feet above street level. had been built over East Mall catalytic for the city’s economic Material A substantial hill now stands on Drive to reach Public Auditorium. development like similar parks in the north end of Mall B, certain to Now, they provide clear views of Chicago and New York City. be a lightning rod catching civic the lake to the north and of the city Would Daniel Burnham, the For controversy for years to come. to the south, and both streets are world-renowned architect and city Consider how it’s sized up by framed by rows of London plane planner who helped craft the The Medical Mart Carol Poh, a historic consultant trees. The idea is that the area now Group Plan, be proud of this redo? whose straight-shooting critiques is more pedestrian friendly, and a Ms. Poh said, “Daniel Burnham have led to changes in several major location for activity and people to famously asserted, ‘A noble, logi- downtown projects over the years. gather. cal plan will never die.’ He was Lakeside Supply Company “As seen from the south, the new “Then you go out on the field to mistaken. Did The Cleveland City convention center has despoiled enjoy a game of Frisbee,” she said. Planning Commission really sign Wholesalers of Plumbing, Heating, & Industrial Suppliers the Mall with a Chinese wall — an “Before, the crosswalk was in the off on this?” insuperable barrier that obliterates middle of the block on St. Clair. Mr. Coyne disagrees. He be- once-expansive views. From the Now two crosswalks will be lieves Mr. Burnham, whose bust north (along Lakeside), seeing the aligned with the Mall drives.” graces the window shelf of his 1-800-537-1234 project for the first time caused my Two concrete sidewalks criss- 22nd-floor law office, would in- Cleveland, Ohio heart to sink. That banal hodge- cross grassy Mall B at angles, stead be smiling down on the new podge of ramps, glass and steel placed where planners believe Mall. ■ 20130401-NEWS--28-NAT-CCI-CL_-- 3/29/2013 1:30 PM Page 1

S-14 CRAIN’S CLEVELAND BUSINESS SPECIAL REPORT APRIL 1-7, 2013

A LOOK BEHIND THE SCENES WHAT ABOUT ...

JASON MILLER

■ A point of popular curiosity is the understated, box-like design of the four-story medical mart, erected on the northeast corner of On- tario Street and St. Clair Avenue next to Mall B. The structure is clad in precast concrete with a splash of windows on its southern and western sides. A vast wall- sized glass arcade on its east side looks at the Mall. Mark Reddington, a partner at LMN Architects of Seattle, said the off-white precast is designed to fit with the sandstone on old public buildings surrounding the Mall. On the west side of the medical mart JASON MILLER PHOTOS building, he said, the structural Workers are shown in mid-March working at the convention center and medical mart complex. Plans call for the Global Center space to be design limited the number of win- turned over to tenants today, April 1. dows that could be installed, so windows went in only where interi- or uses required outside light. That meant the windows have a wave-like rather than the typical look of a straight line of windows. Shannon Nichol, the founding partner of GGN of Seattle, notes the area on the east side of the medical mart is designed to complement the adjoining Mall by serving as an open space for installing tents and holding receptions when the weather is suitable — further engaging visitors with the public space.

The main ballroom at the convention center is 32,000 square feet.

The convention center’s exhibit space, seen here, can be divided into three halls: one measuring more than 50,000 square feet; and two larger halls measuring more than 80,000 square feet apiece. COURTESY TURNER CONSTRUCTION

■ One of the design’s most quizzical parts is a grove of black mirrored-glass obelisks near Pub- lic Hall. Mr. Reddington said those are designed to meet contemporary code requirements to provide fresh air from a location above potential car exhaust fumes that were not in place during the Mall’s last redo. More than 324 windows were used for the Global Center. The trapezoidal shapes are technically shrouds that cover shafts and ventilating equipment drawing fresh air into the convention center. ON THE WEB The look is modern, but Robert For smart phone users, scan this Brown, Cleveland city planning di- QR, or “quick response” code, with rector, notes they reflect the clas- any QR code reader to view more sical buildings forming the Group current photos of the project. Plan. — Stan Bullard The convention center entrance rises at the north end of Mall B, on Lakeside Avenue. 20130401-NEWS--29-NAT-CCI-CL_-- 3/29/2013 1:30 PM Page 1

APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 29 Constructs: Remodeling Uniting: Area economy could get boost continued from PAGE 1 “It is becoming a higher and probably couldn’t work with a ■ work drives many sales Since the beginning of the year, agenda item both for the staff of only four full-time people. Global Cleveland, a 2-year-old non- So the organization is evolving. profit created to attract immigrants businesses and civic “It’s a restart,” Ms. Roller said. continued from PAGE 1 openings for positions ranging from and former residents to Northeast community here, and it’s Instead, the organization has Mr. Peplin said his construction- a manufacturing engineer to a Ohio, has been adjusting its focus had the effect of getting found that people would rather related sales are up by more than financial controller. under new president Joy Roller. connect online than come down- 10% in the last six months due to Likewise, North Olmsted-based ■ Over the last several weeks, more organizations town so it will soon go live with a increased construction activity. The Moen Inc. is hiring as well, though GCP officials have been meeting working together.” new, more robust online portal. It’s vast majority of Talan’s products it also did not respond to requests with elected members of Congress – Jose Feliciano, chairman, also connecting with locate organi- are linked to the construction mar- to discuss the matter. Moen’s web- and their staffs in Washington to Hispanic Roundtable zations in fields like software and ket, Mr. Peplin said. That includes site lists 63 job openings, ranging promote a pilot program that healthcare to put on virtual job fairs items such as brackets and other from plant mangers and product would demonstrate the boost a The task force report argues that to attract people to the region. parts used in the actual construc- engineers to positions in corporate greater flow of immigrants can have immigrants are key to economic re- At the same time, GCP has been tion of homes and commercial administration. The big manufac- on a regional economy. vitalization in the Midwest and it talking to politicians about an idea buildings, as well as parts for solar turer of faucets and other plumbing All of these groups are anticipat- supports increasing the number of it has struggled to move forward for panels that are, more often than fixtures also is highly dependent ing some kind of change on the fed- visas available as well as defining several years, something called a not, linked to a construction upon new home starts and other eral level during this congressional new paths to citizenship. “high-skilled immigration zone.” project. construction for much of its sales. session. They want the region pre- He said the meeting will kick off “It’s just an idea that is out there as a start for some people who are So when data show that con- pared to react, in particular, to be an effort to get 500 business people The fix is in not ready to embrace the broad- struction in the United States is on more welcoming to immigrant to endorse the report’s conclusions. based and sweeping (immigration) the way up, that’s a good indicator Some companies, including entrepreneurs and young profes- reform measures,” Ms. Caruso said. that Mr. Peplin’s business also will Sherwin-Williams, don’t depend so sionals and to new college gradu- Pushing the reset button be on the rise, he said. Lately, he has much on home construction as on ates in high-tech fields. Along with the Hispanic Round- A shining example seen signs of strength from more the health of the housing market “It is becoming a higher agenda table and the Chicago Council on item both for the business and civic Last year, the U.S. House of Rep- than just the ABI. For instance, the generally, since remodeling work Global Affairs, Global Cleveland is a resentatives considered, but did not community here, and it’s had the U.S. Department of Commerce also drives their sales. Included in co-sponsor of that meeting and, at pass, legislation that would have effect of getting more organizations reported on March 19 that housing that group is Medina-based RPM the same time, is repositioning its made thousands of visas available working together,” said attorney starts for February were at 917,000 Inc., whose subsidiaries make role in growing the region’s talent to highly skilled foreign-born grad- Jose Feliciano, who is chairman of nationally — up 10% from the sealants, paints, primers, caulk and pool. Ms. Roller, who joined the uates in science, technology, engi- the Hispanic Roundtable, a non- month before and at their highest other products often used to repair group Jan. 1, said her organization neering and math. The legislation levels since the recession brought existing homes. profit promoting the role of His- is re-evaluating its role in attracting failed in part because it reduced hammering to a halt. When homebuying activity is panics in the political and econom- people to the region. visa quotas in other areas. high, more people are sprucing up ic life of Northeast Ohio. The organization was launched in What GCP is promoting, along Feeling good houses to sell or remodeling homes Mr. Feliciano was a member of 2011 with a goal of attracting 100,000 with other chambers of commerce Jerry Zeitler, president of Cleve- that they just purchased. Both of an independent task force that pro- new residents over a decade. At the in the Great Lakes region is a pilot land’s Die-Matic Corp., another those activities drive sales for RPM, duced the report. The 53-member heart of the organization’s program- visa expansion program in metro- metal stamper, said he’s experienc- said Barry Slifstein, the company’s task force was formed under the ming was a downtown welcome politan areas in the region. umbrella of the Chicago Council on ing a similar uptick in his construc- vice president of investor relations. center, which opened in February “It’s a way to increase the amount Global Affairs to unite metropolitan tion-related businesses. That’s true no matter what’s hap- 2012. Its function was to be a place of visas in the zone and do some areas in the Midwest on immigra- Like Talan, Die-Matic makes pening in the home construction for immigrants and so-called serious tracking of what jobs are cre- tion reform. Mr. Feliciano and items that go directly into construc- market, though construction and “boomerangers” — former Cleve- ated, what the retention is and what Frank Douglas, president and CEO tion, as well as construction-affect- existing home sales often move landers looking to return — to learn the economic impact is, so we’ll have of the Austen BioInnovation Insti- ed products like parts for plumbing together, he said. about the community and its neigh- a real opportunity to dispute the tute in Akron, represented North- fears that this is not good for local job fixtures, garage door openers or “The fact that the residential borhoods, help skilled workers con- east Ohio on the task force. production,” Ms. Caruso said. other items that often find their way sector has been on the uptick for nect with employers and immi- Mr. Feliciano will present the re- She added, “It would be great if into new homes. about the last nine months, that grants hook up with their cultural port’s findings to the business lead- Cleveland could become the shin- “We’re definitely feeling it,” said bodes well for us,” Mr. Slifstein said. communities. ers at Tuesday’s meeting at GCP. But that role hasn’t worked — ing example, of ‘Look, it works!” ■ Mr. Zeitler, who noted his sales He added that sales of residential have been up in recent months due consumer products are up by “dou- to increased homebuilding across ble digits” compared with this time the country. last year, on a percentage basis. Chris Connor, the CEO of Cleve- “The overall trend is that there is land-based paint and coatings giant momentum in the residential hous- Sherwin-Williams Co., told analysts ing market,” he said. on March 8 that his company CELEBRATE Fingers crossed expects to book record profits this YOUR BUSINESS year, based in part on sales growth The uptick is welcome, but a AT THE NEW MOCA that “will come almost entirely from question remains: Can it continue? volume” increases, rather than Sales of existing homes were Host your next business event price increases. down slightly in February, accord- at Cleveland’s newest icon in the “Clearly we’re most optimistic ing to government data, and while city’s emerging urban neighborhood. about the U.S. architectural market, data for March is not yet available, and we do believe that residential it might be a softer month than Feb- Your event at MOCA Cleveland will probably be the strongest driver ruary, some area manufacturers puts your guests amidst the art of that market,” Mr. Connor said. say. and ideas of our time. Show clients Meanwhile, Sherwin-Williams Mr. Peplin said he has seen some and colleagues your commitment spokesman Mike Conway said the slowing in March. But he’s not wor- professional paint contractors that to creativity and new ideas. ried, he said, in large part because the company works with are report- March was a particularly bad Combining the cutting-edge art ing that they are booking more jobs month for weather, with about half of our time with the creative and hiring additional crew mem- of the nation still blanketed in snow bers to keep up with demand. as of March 25 and many construc- cuisine of Marigold Catering Even companies that aren’t tion projects either halted or slowed turns your next meeting, retreat, talking show signs of growth. because of the conditions. reception, or holiday party into Solon-based Erico International “It sure seems to me like every- an unforgettable experience. produces electrical boxes, fasteners, thing is coming back,” he said. “I conduit and other products that go think April will have pent-up MULTI-USE PACKAGES directly into construction projects. demand. I sure hope it’s not like last It pays to plan ahead. The company did not respond to year, when we had a good January MOCA’s multi-use packages calls seeking comment, but that and February and then March let you conﬁrm several events might be because workers there are through October just (stalled). … and save on rental fees. too busy to talk. Erico, which has But I’m optimistic that won’t be the Call for details. about 500 employees, lists 10 job case.” ■

LET’S START PLANNING FOLLOW ALONG: Contact 216.658.6934 or [email protected] More information at to schedule a tour or start planning your event. ■ Crain’s on Twitter: @CrainsCleveland www.MOCAcleveland.org. ■ Crain’s on Facebook: Facebook.com/CrainsCleveland 11400 Euclid Avenue, Cleveland Ohio 44106 Photography by Dean Kaufman, Robert Muller, and Tess Smith 20130401-NEWS--30-NAT-CCI-CL_-- 3/29/2013 2:42 PM Page 1

30 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 1 - 7, 2013

Summa: Clinic, UH have also made push ON THE WEB Story from www.crainscleveland.com

continued from PAGE 3 “Even without any advantage on the commercial payers reshape how health next to his new business partner, CHP payment side, the ACO approach begins care is reimbursed. Asked whether there Local investments president and CEO Michael Connelly. to capture a patient base, and potential- was risk in putting all its eggs in one bas- “Our belief is that we’re going to be all ly retain it within that health system,” he ket, he said ignoring this pending trans- in with this transfor- said. “Even without health care reim- formation would be irresponsible. bring medical device mation of health care bursement changes, it’s a market share “If we don’t create more value in the to population play.” delivery of health care, we’re in trouble,” health,” Mr. Strauss Summa’s initial ACO pilot program, Mr. Connelly said. “I don’t think popu- company to region added. “The invest- which launched in early 2011, served lation health is a fad. I think population ment they’re going to about 12,000 patients enrolled in its in- health is essential to keeping our coun- JumpStart Inc., the nonprofit venture development make in Summa will surance arm’s Medicare Advantage try competitive.” organization in Cleveland, has committed to invest help us both by product, a benefits offering that permits University Hospitals, meanwhile, has $250,000 in a medical device company that just bridging the gap be- Summa to coordinate the care of also launched a number of ACOs that, in moved to Akron from Kentucky. tween these two Connelly Medicare enrollees and thus better con- all, encompass more than 130,000 indi- The company receiving the money, OrthoData Inc., is worlds.” trol costs. That Medicare Advantage viduals, according to Dr. Eric Bieber, the developing a diagnostic system for spine surgeons. Most major health care systems are product offered by SummaCare, the health system’s chief medical officer. JumpStart said OrthoData’s implantable microelectronic migrating toward this notion of popula- health system’s insurance arm, was par- Like Summa, University Hospitals spine fusion sensor, known as the IntelliRod system, tion health management to varying de- ticularly attractive to CHP, Mr. Connel- was selected to participate in the enables surgeons to assess the success of spinal fusion grees. In addition to Summa, the rely said, and it is looking to expand that Medicare Shared Savings program, an procedures without exploratory surgery. gion’s other health care giants — the product to markets where CHP has a experimental program run by the feder- Last Wednesday, March 27, the Akron Development Cleveland Clinic and University Hospi- presence. al government that will reward doctors Corp., through its Akron BioInvestment Funds LLC, tals — have made investments in the “Having a Medicare Advantage prod- and hospitals for providing quality, yet announced that OrthoData was moving to Akron from arena. But while each system’s ap- uct that we can grow is a huge strategic low-cost, care to Medicare patients. Louisville, Ky. proach has been different, there appears advantage because it will promote pop- Dr. Bieber agreed that all the invest- Akron BioInvestment Funds provided financing of an to be broad agreement that population ulation health,” he said. “It ties into a ments the system has made in terms of unspecified amount to OrthoData. A news release health is more than the latest buzzword. strategy around ACOs, and those sort of ACOs can be difficult to rationalize, giv- stated that the Akron BioInvestment funding “has enabled feed each other.” en the constraints of the fee-for-service OrthoData to attract additional backing from various The rise of the ACO The idea, according to Messrs. Strauss model on which the entire health care private sources throughout the country, totaling $1.1 A big component of the health sys- and Connelly, is to take those models of sector is built. Still, he noted, “We do be- million.” tems’ play in the population health are- care that have been honed under Sum- lieve the current situation isn’t sustain- In return for the funding, the release stated, OrthoData na has been the launch of so-called ac- ma’s and CHP’s ACOs — with the added able, and we do think this is where the moved to the White Pond Crossing Development in Akron. countable-care organizations, or ACOs muscle of the SummaCare insurance puck is going.” Ric Navarro, OrthoData’s president and CEO, said in a — a still amorphous piece of health care arm — to the region’s employers as they The Cleveland Clinic, however, has statement issued through JumpStart that up to 30% of reform designed to band together med- grapple with rising health care costs, been more measured in its approach to post-operative spine patients experience continuing pain. ical providers, such as primary care doc- particularly those that are self-insured. ACOs, according to Dr. David Long- He said the IntelliRod system “allows surgeons to track tors and specialists, and to reward them Both organizations also have ACOs en- worth, chairman of the Clinic’s medi- the outcome of the initial fusion surgery without invasive with financial incentives for providing compassing their employees and their cine institute. procedures and with less radiation exposure” to the quality care for a defined group of peo- dependents. The Clinic, for one, chose not to a take patient. ple at a controlled cost. “Just think about the economic viabil- part in the Medicare Shared Savings “OrthoData’s technology has the potential to transform Bill Ryan, president of the Center for ity this would generate in each of our program and instead rolled out minia- the postoperative management of spine implant patients,” Health Affairs, an advocacy group for lo- communities if employers could start ture versions of ACOs and population said Michael Lang, a JumpStart venture partner, in a cal hospitals, characterized the surge of having health care inflation be less than management programs at three of its statement. “By providing early indication if the spine is or ACOs as evidence that local health care actual inflation,” Mr. Connelly said. “We primary care practice sites. is not fusing, surgeons can intervene with alternative systems are looking to position them- think all these tools, skills and systems The idea, he said, is to learn “compe- therapies sooner.” selves at the front-end of payment re- will make that happen.” tencies around population health man- The company will have four employees in Akron “but form, as the government and commer- plans to expand as needed,” according to the Akron De- Too much, too soon? agement” rather than “jump right in” cial payers transition from a like other health systems in the region. velopment Corp. release. fee-for-service model to one that rewards By making such a momentous shift “Our caution has been around taking OrthoData was founded by spine surgeon Dr. Rolando value. Moreover, ACOs also are designed toward population health, Mr. Connelly unnecessary risk before we could M. Puno and professors from the University of Louisville. to prevent patient leakages to other said Summa and CHP will have added manage performance,” Dr. Longworth — Scott Suttell health systems, Mr. Ryan suggested. influence as the federal government and said. ■ REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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APRIL 1 - 7, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 31 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Work flows back home Office building site ready developer, NRP has built more than 21,000 MARCH 25 - 31 units across the country since its founding for maker of non-spill cups for revival as apartments in 1993. — Stan Bullard The big story: Hyland Software Inc. is the ■ A small Seven Hills company is bringing ■ Look for construction workers to appear new owner of the Five Seasons Family Sports the “reshoring” movement close to home by soon on the vast, empty southeast corner of So far, so good in big Club property at 28105 Clemens Road in West- moving production to North Royalton from Chagrin Boulevard and Green Road in lake. Cuyahoga County land records show that China. Beachwood as Commerce Park Place apart- Summa, CHP combination Hyland paid $11.14 million for the luxury sports Reflo Ltd., which pro- ments get cued up to go after more than a ■ At this point, the proposed deal by which club building and acreage. The company plans duces non-spill cups year of preparations. Cincinnati-based Catholic Health Partners to expand the existing club building on the 21- and bills itself as an The project received a total of $64 million plans to purchase a minority stake of Summa acre property for a new technology center for its alternative to “sippy in mezzanine and mortgage debt through Health System in Akron is nearly complete, research and technology team. The project will cups” for children, HCF Holdings LLC from Heitman Capital with both organizations’ boards aiming to replace a previously announced plan to add a moved its overseas Management, a huge Chicago-based private sign off on the deal by the end of June. 100,000-square-foot building next to Nordson production to Cardinal equity and debt origination firm, according “We pretty much have the main deal Corp.’s former headquarters, which Hyland Products Inc. in North to records filed last Thursday, March 28, points done,” Summa president and CEO refers to as its building two. The sports club will Royalton at the end of with Cuyahoga County. Thomas Strauss said in a recent interview close May 31. January, said Reflo The same day, Commerce Park Place with Crain’s Cleveland Business. owner Pete Draganic, Holdings LLC — the name the NRP Group “It’s just going through the due diligence Filling up: Add Northwestern Mutual to the who also is an inventor of Garfield Heights is using for the project — — both sides going through the diligence — list of tenants at Ernst & Young Tower in the and local politician . filed with the county a notice to contractors to make sure all the things we said were Flats East Bank Neighborhood in downtown Mr. Draganic is a member that it intends to start issuing contracts for correct,” he said. Cleveland. The national financial services firm of Seven Hills City Council; he has run for the 348-unit building after today, April 1. CHP president and CEO Mike Connelly announced it has leased 17,000 square feet in governor and Cuyahoga County Council in Beachwood’s building department also is said his enterprise was looking to purchase tower. That amounts to almost all of the new the past. He also owns Central Diversified reviewing construction drawings, which a stake that represented “about a third” of building’s sixth floor. Northwestern Mutual will Contracting, a construction company that have to be approved before the city issues Summa’s value, though he couldn’t provide relocate from the Ohio Savings Bank Building works primarily on commercial projects. building permits. an exact dollar figure. As part of the deal, on East Ninth Street. The firm’s 100 financial Reflo was created in late 2010, and Mr. Both J. David Heller, an NRP principal, CHP would have control of five of Summa’s advisers and staffers plan to occupy the new Draganic said it produced about 30,000 and Diane Christy-Richey, its marketing 16 board seats. space in November. units last year. director, were out of office last Friday and Catholic Health Partners, which employs The cups were made in Indiana and the did not return a phone call and email to more than 32,000, has a modest presence in Making history: The Cleveland Foundation inserts that control the flow of the liquid each of them by deadline. Alan Scott, the northern Ohio, with community hospitals in awarded the Cleveland Orchestra a $10 million were made in China. Mr. Draganic said he NRP principal who oversees construction, Lorain, Lima, Toledo, Warren and grant to support its ongoing efforts to cultivate wanted to have all of the production in the also was out of office Friday morning. Youngstown. Combined, Summa and CHP new and broader audiences and to build a strong United States all along, but it was too expen- The four-story building will rise on the would boast the largest market share in Ohio. endowment. The grant was the largest to an arts sive when he was getting started. site of the former Commerce Park I, II and Summa announced last July that it was organization in the foundation’s 99-year history. Mr. Draganic declined to disclose the III office buildings, which were demolished looking to sell a stake in itself to a “like- The orchestra already has launched several efforts company’s revenues. — Rachel Abbey last year. minded” nonprofit health system. — Timothy aimed at renewing interest in the community, McCafferty A market-rate and affordable housing Magaw including its Center for Future Audiences, an effort to spur interest among younger people. That venture began in 2010 after receiving a $20 million commitment from the Milton and WHAT’S NEW BEST OF THE BLOGS Tamar Maltz Family Foundation. Excerpts from recent blog entries on ratios; amount of “revolving” A solid foundation: Foundation Software CrainsCleveland.com. (credit card) debt adjusted nearly tripled its office space as it moved to for cost of living; total Strongsville from Brunswick. The company, Downtowns are central debt-to-median home which makes software for construction busi- price ratio; com- nesses, moved into what used to be the head- to cities’ development plans bined bankruptcy and foreclosure quarters of another software company. The ■ Forbes.com included Cleveland in a rates; and non- 48,600-square-foot building on Foltz Industrial COMPANY: Sifco Applied Surface feature/slideshow about 15 U.S. cities that Parkway — which CSC Group built shortly before housing costs Concepts, Independence are revitalizing their central business adjusted for cost filing for bankruptcy — dwarfs Foundation Soft- districts to lure young professionals. ware’s previous 17,000-square-foot headquarters. of living, relative PRODUCT: The Classic Power “Today, more than $3.5 billion is currently to average area Packs invested in furthering the area’s redevelop- incomes. Wait ’til next year: The Cleveland Air Show ment,” the website said of downtown for this summer was canceled, the result of The country’s best budgeters Technology used in plating rectifiers, Cleveland. “The Global Center for Health are in Boston. sequestration. Because of the federal spending Innovation and a 750,000 square foot conven- restraints, none of the military equipment that is known as “power packs,” has improved sig- Cleveland was No. 5 on the nificantly over the years, Sifco Applied Sur- tion center will open this summer, totaling ‘worst budgeters’ list, behind normally a major draw to the Labor Day week- $465 million.” (You can read all about that end event on the lakefront would have been face Concepts says. Its new line of econom- Orlando, Tampa, Cincinnati and Atlanta. ical power packs, which carries on that in our special section this week.) According to CardHub, the best bud- available this year. The show has been a fixture Downtown’s population “nearly doubled on Cleveland’s lakefront since 1964. tradition of improvement, is known simply as geters “make the most of what they have “The Classic Series.” in the two decades ending in 2010, according by adhering to a well-crafted spending Sifco Applied Surface Concepts says the to Census data, and the area welcomed the plan that accounts for the unexpected while Classic Power Packs feature “rapid-adjust- biggest percentage increase in population leaving little room for frivolity. The best ment dials for voltage and amperage growth of any district in the greater city as a budgeters know the difference between changes, as well as a three position switch whole,” Forbes.com noted. luxury and necessity.” to change the polarity.” The lightweight, The website added that from the fourth portable units are equipped with a digital dis- quarter of 2011 through the fourth quarter Bubba Baker has excelled play for quick and accurate control, accord- of 2012, the number of housing units grew ing to the company. They are manufactured about 13%, according to the Downtown at tackling a new career Cash in hand: PolyOne Corp. agreed to sell its Cleveland Alliance. An additional 715 units using high-quality components and have two- ■ USA Today rounded up what it considers vinyl dispersion, blending and suspension resin are expected to come online in 2013, the site year manufacturer’s warranty, Sifco Applied the country’s 20 best athlete-owned restau- assets to Mexichem S.A.B. of Mexico City for stated. $250 million in cash. PolyOne’s resin assets are Surface Products says. rants, and one of them belongs to a former part of its Performance Products and Solutions Classic Power Packs are available in 15-, member of the Cleveland Browns. business segment. They generated revenues of 30- and 60-amps models and either 115V or We all could spend At No. 8 on the list was Bubba’s Q, the $147 million in 2012, PolyOne said. 230V configurations. more time on budgeting barbeque joint in Avon owned by Al “Bubba” Sifco Applied Surface Concepts provides Baker. Little things mean a lot: A German chemical products to improve part performance with ■ A new report from CardHub.com, cited in After retiring from professional football in company is working with Case Western Reserve surface enhancements. It also offers selec- a Wall Street Journal story, says that more 1990, Mr. Baker, a defensive lineman, and University to develop a way to make semicon- tive plating products and job-shop plating ser- than 50% of U.S. consumers “don’t keep a his wife, Sabrina, opened a catering busi- ductors that are smaller than any on the market vices on-site and at all of its locations world- budget — and more than one in five don’t ness featuring “Southern-style barbecue today. Atotech Deutschland GmbH of Berlin will wide. have a good idea of their spending.” cuisine.” spend more than $1 million annually for at least For information, visit www.sifcoasc.com. And Clevelanders are among the worst The story noted that Bubba’s Q “has since the next five years to help researchers at Case offenders. done pretty well,” earning honors from, Western Reserve study a new way of placing cop- Send information about new products The Journal reported that CardHub among others, Cleveland Magazine for “Best per wire networks on semiconductors. to managing editor Scott Suttell ranked the 30 biggest metro areas based on Ribs” and “Best Barbecue Restaurant” from at [email protected]. six factors: credit scores; debt-to-income 2009 to 2011. 20130401-NEWS--32-NAT-CCI-CL_-- 3/28/2013 1:29 PM Page 1

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