Interest Is Through Roof

20150608-NEWS--1-NAT-CCI-CL_-- 6/5/2015 3:20 PM Page 1

$2.00/JUNE 8 - 14, 2015

The importing of foreign steel to Ohio mills has become a big topic of debate in the industry — P. 3 The return of Cuyahoga County’s commercial docket is ‘happening,’ but likely will take a while — P. 3 Interest is through roof Plenty of grocers NBA Finals might be 70% city’s biggest-ever Year-over-year setting sales price media event and its increase for Cavs tickets hottest ticket since ’95 on Flash up shop Seats during By KEVIN KLEPS the regular Competition in area is [email protected] season Len Komoroski, the CEO of the Cleve- getting pretty intense land Cavaliers and Quicken Loans Arena, believes the NBA Finals is the biggest me- By STAN BULLARD dia event in the city’s history. [email protected] The NBA’s championship series, which features the Cavs for just the second time 750 Grocery retailers from Meijer Inc. to Whole Foods Market are starting in its 69-year history, is also producing Out-of-town what might be Northeast Ohio’s most to set the table for more competition coveted tickets in at least 20 years. media for consumers’ dollars in Northeast “It’s really strong — on par with the ’95 members Ohio. World Series,” Mark Klang, owner of The busiest retail sector — far sur- Mayfield Village-based Amazing Tickets expected passing apparel and electronics re- Inc., said of the market for Games 3, 4 and to be at The Q tailing — promises to get far busier as Grand Rapids, Mich.-based Mei- 6 in Cleveland. for Game 3 Numbers provided to Crain’s by sec- jer has acknowledged interest but ondary-market brokers, as well as the has not consummated deals to add tracking of sales on Flash Seats, the sec- its hypermarket stores in Avon, Bain- ondary marketplace operated by Dan bridge Township, Stow and North Gilbert-owned Veritix, back up Klang’s Canton. claim. Meantime, Phoenix-based Fresh SeatGeek content analyst Chris Leyden $5M Thyme Farmers Market has surfaced said the average sales price for Game 3 of as a potential tenant for Golden Gate the NBA Finals on Tuesday, June 9, at The Estimated Shopping Center in Mayfield Q was $1,196. The market for the NBA Fi- economic Heights after opening two stores downstate in the past year. nals openers at Golden State (Game 1 was impact of each producing an average sale of $1,325 on The competition will be intense as the eve of the June 4 tipoff of the series) NBA Finals Northeast Ohio is losing mouths to and Cleveland was stronger than any Fi- game held feed, not gaining them. nals game in at least the last five years, ac- The most recent population esti- cording to SeatGeek. in Cleveland mate by the U.S. Census Bureau TiqIQ — like SeatGeek, a New York- shows that Cuyahoga, Geauga, based broker — wasn’t tracking sales Lake, Lorain, Medina, Portage and prices as high as its competitor (an aver- Summit counties combined lost al- age sale of $947 for Game 1 and $937 for most 45,000 people in the last five Game 3), but the company said the ticket years. market for the 2015 Finals was better than P. 7 Although the Meijer stores are any since it started analyzing Finals data bound for outer-ring suburbs where in 2010. More facts home construction has gained some Amazing Tickets’ Klang, who sells his and figures, population from neighboring coun- vast collection of season tickets on his ties due to slow growth in housing website, said that once the Cavs-Warriors breaking down development, convenience only See INTEREST, page 6 the NBA Finals. See GROCERS, page 25 23

7 ALSO INSIDE: MIDDLE MARKET

74470 83781 producing quality products ■ Pages 17-23 by Crain Communications Inc. Vol. 36, No. 23 0 PLUS: ADVISER ■ TAX TIPS ■ CONTENT MARKETING ■ & MORE 20150608-NEWS--2-NAT-CCI-CL_-- 6/5/2015 11:26 AM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY

BIG IDEAS The Medici Effect Author Shares His Insights on Innovation and Success Frans Johansson, best-selling author of ;OL4LKPJP,ɈLJ[ and ;OL*SPJR4VTLU[, writes about what he is passionate about. And in writing his books, he has shattered assumptions about how great ideas happen and the idea that in business you can strategize, plan and analyze your way to success. Johansson will share his insights as the featured speaker at COSE’s next [OPURZWV[L]LU[>LYLJLU[SÒHK[OLVWWVY[\UP[`[VHZR Johansson a few questions about how he got his start, his advice for entrepreneurs and what to expect at his upcoming [OPURZWV[ appearance. June 8 What can the audience expect from your Luther King. How and why are think spot presentation? those combinations possible? Innovation will be the underlying theme of You would assume that they By The Numbers my talk. I will focus on how we come up with aren’t. But out of these seem- HNYLH[PKLHHUK[OLKPɈLYLU[HWWYVHJOLZ^L ingly random combinations have Small Business: Job Creators take in response to it – whether innovative or come groundbreaking ideas ordinary. Your best chance for groundbreaking that have created whole new Thursday, June 24, 2015 innovation is at the intersection where diverse industries. I discovered that the 5:30 - 8 pm Renaissance, Cleveland concepts, disciplines, cultures and industries unexpected outcomes in every collide. I’ll talk about ways you can tap into your life journey can have the biggest Register at Small businesses community and your life to make unique con- impact on the fortunes of others. www.cose.org/thinkspot have generated nections that can bring about breakthroughs. @V\JHUOH]L[OH[ZHTLLɈLJ[PU Frans Johansson more than your organization or business if Tell us a bit about ;OL 4LKPJP ,ɈLJ[ and `V\ JHU ÄN\YLV\[ H^H` [VIYPUNHIV\[ KP Z\JJLZZM\S¹ :\JJLZZ JVTLZ PU THU` KPɈLY The Click Moment. versity. 65% ent forms, but it virtually always comes from 4`ÄYZ[IVVR;OL4LKPJP,ɈLJ[, is named My next book, ;OL*SPJR4VTLU[, delves the unexpected. This book uncovers ways to of the net new jobs for the phenomenon that happened in Florence into how to harness serendipity to stand capitalize on those unexpected moments. since 1995. hundreds of years ago when diverse concepts, apart. It’s a study of randomness and luck. I cultures and disciplines intersected, leading to say that if a good idea is a light bulb going i 9LHKTVYLVMV\YPU[LY]PL^^P[O one of Europe’s most creative eras, the Renais- VɈV]LY`V\YOLHKH[Y\LJSPJRTVTLU[PZH 1VOHUZZVUHZOLKPZJ\ZZLZ[OLILZ[ SOURCE: U.S. CENSUS BUREAU sance. I started thinking about what happens if supernova exploding at 100 billion degrees. HK]PJLOLL]LYYLJLP]LKHUKVɈLYZ you combined architecture and termites, biki- There is no cheat sheet for life. No one can OPZVÛHK]PJLMVYLU[YLWYLUL\YZH[ nis and burkas, and techno music and Martin say, “Follow these three steps and you will be ^^^JVZLVYNUL^Z Connection Calendar ASK THE EXPERT COSE WEBED SERIES: ENGAGING YOUR EMPLOYEES: 6MMLYPUN>VYRWSHJL)HURPUNHZHU,TWSV`LL)LULÄ[ HOW TO GET YOUR STAFF TO CARE AS MUCH AS YOU DO Economic recovery can be a mixed bless- [OLT^P[OL]LY`[OPUNMYVTTHUHNPUNJHZOÅV^ Practical advice from Charlie Colon, global ing for small business owners. Certainly, and improving credit scores to retirement plan- channel manager for Employee Engagement for I\ZPULZZ VÛLYZ ^LSJVTL HUK ILULÄ[ MYVT ning. In addition, many workplace banking pro- Gallup, on how to change how leaders view their increased demand for services. At the same NYHTZ VɈLY YLK\JLK WYPJPUN VU IHURPUNZLY work, employees and customers. time, economic recovery can also create ad- vices. This may include checking accounts and JUNE 16 ditional stress for businesses. More business reduced rates on loans, including mortgages. 11 AM – NOON JHUTLHUPUJYLHZLKKLTHUKMVYX\HSPÄLKLT Many workplace banking programs are able Matthew Wyner, ployees, particularly those with experience in to complete account applications at the work Cost: FREE high-demand segments. Therefore, employee KeyBank site so employees don’t have to remember to Register at www.cose.org/events. recruitment and retention remains a top of enroll online from home or make a special trip to mind issue for most business owners. HWWYLJPH[L[OH[VÛLYZJHUVɈLY^P[OV\[HU` a bank branch. Typically, a small business own- Owners have numerous options to incent cost to them. er can expect a workplace banking program to and reward their employees. They can boost A recent MetLife survey showed 45 percent VɈLYHJJLZZ[VHSPJLUZLKPU]LZ[TLU[THUHNLY TECH GROWTH: wages, provide or improve health insurance of employers surveyed said it is important to HZ^LSSHZÄUHUJPHSLK\JH[PVUPUMVYTH[PVU LESSONS FROM THE DEAL ILULÄ[Z VY LZ[HISPZOYL[PYLTLU[ ILULÄ[Z [OLT[VWYV]PKLÄUHUJPHS LK\JH[PVU [V LT 0U]LZ[PUN PU LTWSV`LLZ I` VɈLYPUN[OLT Cleveland’s own OverDrive, Inc. recently sold for such as matching a percentage of employees’ WSV`LLZZVLTWSV`LLZJHUILJVTLÄUHUJPHSS` ^VYRWSHJLIHURPUNJHUWH`VɈIPNMVYTHU` more than $400 million, a fantastic success by 401Ks. These tactics are all valuable, but are secure. The study shows that employees who I\ZPULZZVÛLYZ(TVYLÄUHUJPHSS`ZLJ\YL any measure. CEO/Founder Steve Potash shares also expensive. HYLTVYLÄUHUJPHSS`Z[YLZZLK[OHU[OLPYWLLYZ HUKJVUÄKLU[LTWSV`LLPZVM[LUHTVYLSV`HS inside details on the company’s early days, growth and lessons learned from the very fruitful However, there are other ways for small believe they are less productive at work. and productive employee. selling of the company. I\ZPULZZ VÛLYZ [V VɈLY ]HS\LK LTWSV`LLZ >VYRWSHJL IHURPUNWYVNYHTZ ILULÄ[ LT MATTHEW WYNER, JUNE 18 HKKP[PVUHS ILULÄ[Z >VYRWSHJL IHURPUNWYV WSV`LLZPUZL]LYHS^H`Z)HURZVɈLYÄUHUJPHSLK Senior Vice President, Retail Banking, NYHTZHYLVULL_HTWSLVMHILULÄ[LTWSV`LLZ ucation to business clients’ employees, assisting East Ohio Region, KeyBank 11:30 AM - 1 PM Lockkeepers, Valley View

52 TIPS FOR YOUR BUSINESS Cost: OHTec and COSE members $25; non-members $40 #23: Keep the Cash Flowing Register today at www.cose.org/events.

*HZOÅV^THUHNLTLU[PZJY\JPHSPULɈLJ of money coming in. [P]LS`THUHNPUN`V\YI\ZPULZZÄUHUJLZ/H] ¸>OH[ VM[LU OHW RNC SUPPLIER FORUM PUNHWVZP[P]LJHZOÅV^ZOV^ZSLUKLYZPU]LZ pens is that a small Find out how to become a supplier for the tors and vendors that your business is in good business owner will estimated $100 million spend for the 2016 ÄUHUJPHSOLHS[O"HULNH[P]LJHZOÅV^W\[Z`V\Y focus too much on Republican National Convention. I\ZPULZZ PU ZLYPV\Z ÄUHUJPHSYPZR ;OLKPɈLY their checkbook JUNE 24 LUJLIL[^LLUWVZP[P]LHUKULNH[P]LJHZOÅV^ balance and not on who owes them money or of businesses have accounts that are greater 3:30 – 4:30 PM JHUTLHU[OLKPɈLYLUJLIL[^LLUHZ\JJLZZM\S ÔV[OL`TH`V^L¹ZH`Z9PVU:HÄLYVM9PVU than 60 days past due. Other contributing fac- year and bankruptcy. :HÄLY(JJV\U[PUN¸0[»ZPTWVY[HU[[VWHÌL[[LY tors include normal cyclicity or seasonality in Renaissance, Cleveland Creating prolonged periods of positive cash attention to the whole process of billing, col- business operations. If you can anticipate that Cost: Free ÅV^ NVLZ T\JOKLLWLY [OHU Q\Z[ YL]PL^PUN lecting and payments.” someday down the road you may fall short on Reserve your seat at www.cose.org/rnc. `V\YTVU[OSÌHURZ[H[LTLU[Z;Y\LJHZOÅV^ Most businesses at some point will experi- cash, arrange for a line of credit to cover op- management is a delicate balance, stemming LUJLULNH[P]LJHZOÅV^ I\[[OH[PZUV[ULJ erating expenses for when things get tight. If from your ability to hold onto your cash for as essarily a sign of failure. Accounts receivables you wait until that day arrives, chances are you long as possible while keeping a steady stream are almost always to blame – nearly 70 percent won’t get approved. Check out www.cose.org/events CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150608-NEWS--3-NAT-CCI-CL_-- 6/5/2015 2:58 PM Page 1

JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

DAN SHINGLER Deliveries of steel pipe are expected to keep the Port of Cleveland busy through November, port vice president of maritime and logistics Dave Gutheil said. Foreign imports weighing on some Workers at Ohio mills are protesting delivery of steel from overseas; proponents say reason is simple

By DAN SHINGLER northern West Virginia, and transport it to the oil and gas industry tends to brag about. and sent workers home, most notably in Lo- [email protected] other pipelines and end-users in Michigan Since the nation’s shale-drilling revolution rain, where U.S. Steel laid off more than 600 and Canada. began, if not before, the industry has boasted workers last year. Recently, steel pipe has been coming into The line is using big pipe — usually 36 about how it buoys American jobs by supply- The steel industry has been particularly the Port of Cleveland from Europe and then inches or 42 inches in diameter, and in sec- ing industry with cheap, homegrown energy, sensitive about foreign imports, and workers heading to a yard in Massillon, where union tions 40 feet long. It will take about 93,000 of and by using American labor and materials in have protested at Ohio mills, complaining workers are complaining that it’s being han- those sections to make up the entire line. its own work. about steel being “dumped” in the U.S. by dled by non-union, out-of-state companies. It’s keeping union longshoreman plenty The steel industry certainly saw some ben- other countries. Steelworkers at the nation’s Is the oil and gas industry turning its back busy in Cleveland, where it’s stacked up at the efits. When drilling picked up in Ohio around pipe mills might have particularly good rea- on U.S. workers and steel companies, or is it Port. 2009, it spurred hiring and investments at sons to gripe, too. While steel imports to the doing all it can to buy American? That de- “I think there’s a total of nine vessels bring- steel mills in Lorain and Canton. It even led United States were up only about 3% in May pends upon whom you ask. ing it in. This is the third one now,” said Dave to the construction of a mill in Youngstown from the like months of 2014, steel pipe im- The steel coming into Cleveland is from Gutheil, the port’s vice president of maritime by France’s V&M Star, which has spent near- ports were up a whopping 70%. Europe, and it ultimately will end up under- and logistics. ly $1 billion on its steel tube mill. ground in Ohio, Pennsylvania and Michigan The deliveries are expected to keep the port But when oil and gas prices collapsed — as part of the Rover Pipeline being built by busy through November, Gutheil said, when ironically, largely because of the success of Giving 100% to get to 76% Dallas-based Energy Transfer Partners. The the last of about 100,000 tons of steel pipe will the drilling industry here — steel felt the sting So why doesn’t an industry that is normal- $4.2 billion, 710-mile line will take gas from be offloaded and sent to Massillon. of the sword’s other side. ly very concerned about public relations — eastern Ohio, western Pennsylvania and The use of foreign steel is not something Mills that had been hiring slowed down See IMPORTS, page 26 ‘Hopeful’ signs for return of commercial docket

By JEREMY NOBILE simply want the docket back, said happening.” preciate the docket, Hearey said, “There was a perception, and it’s [email protected] Cleveland Metropolitan Bar Associ- The docket was officially — and “I’m not aware of them.” not an illegitimate philosophy, but ation president Bruce Hearey. He supposedly permanently — adopt- Joe Roman, CEO of the Greater there was a perception among If you’re hoping to see a com- said that what’s promising for ed in Cuyahoga County in 2013 fol- Cleveland Partnership, has lauded some of the judges about what’s so mercial docket restored in Cuya- lawyers is that the dialogue is ongo- lowing a three-year pilot program. the docket as a positive for busi- special about businesses that we’re hoga County Common Pleas Court, ing, adding he’s “hopeful” for a But the court dissolved it in late nesses. creating a special group of judges don’t give up just yet. “satisfactory resolution.” January following the rejection of “Anything that can reduce regu- for them when we don’t do some- Several judges and attorneys He described the April meeting, Judge Cassandra Collier-Williams lations, that can speed up permit- thing similar for say indigent plain- convened April 28 to discuss the which drew 13 judges and at least from the docket by the Supreme ting, make lawsuits and the time tiffs of criminal defendants or that pros and cons of the commercial 15 lawyers, as civil, but said it’s Court’s Commercial Docket Sub- surrounding them more efficient kind of thing,” he said. docket designed to be dedicated to clear some judges were adamantly committee, whose chairman said and effective, all those things re- Burt W. Griffin, a retired Cuya- the streamlined resolution of often against the docket as much as some Collier-Williams was not qualified duce the costs of doing business,” hoga County Common Pleas judge complex business-to-business law- lawyers were passionately in favor for the position. Roman told Crain’s in February. who served on the bench between suits like trade secret disputes, of it. Since then, the legal and busi- “For a community who can do this, 1975-2004, has said he believes the noncompete contracts and share- “I think the message is people ness community has implored the it’s an advantage.” docket was disbanded largely be- holder disagreements. should not interpret silence as a court to restore it. Litigators say Hearey said he’s learned that cause judges wanted to show sup- Judges, generally, want to see sign of the demise of the commer- they appreciate the predictability some judges are simply philosoph- port for Collier-Williams when she some changes to how the docket is cial docket,” Hearey said. “There created by a small group of dedicat- ically against the docket itself — was rejected as a judge for it. managed, said administrative and are efforts going on to restore it. It’s ed judges on the docket and fast something Common Pleas Court But beyond the way judges are presiding Judge John J. Russo. not happening as quickly as case turnover. If there are any Judge John Sutula voiced to Crain’s selected, Russo said judges don’t Corporate lawyers, meanwhile, attorneys would like, but it’s Cleveland attorneys who didn’t ap- in March. See DOCKET, page 26 20150608-NEWS--4-NAT-CCI-CL_-- 6/5/2015 3:55 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 )25/($6( Regulations strengthen &/$66$)/(;63$&( '$5,&(3$5.:$<67521*69,//(2+,2 biz at Twinsburg company Technoform Glass thinks stricter energy-efficiency codes will provide boost

By RACHEL ABBEY McCAFFERTY mance criteria for fenestration [email protected] products; California Energy Codes Title 24, U.S. DOE’s Zero Energy Some companies complain Ready Home, Passive House, Inter- about regulations. Not Technoform national Energy Conservation Glass Insulation North America Inc. Code, and LEED, just to name a 6)DYDLODEOH For more information, contact our As energy-efficiency codes get few.” licensed real estate salespersons: 6)RIÀFH more stringent, Technoform Glass Terry Coyne, SIOR, CCIM expects to grow. At its plant in 6)ZDUHKRXVH 216.453.3001 Twinsburg, the company makes System processing 'LYLVLEOHWR6) [email protected] rigid warm edge spacers for win- It’s not just that codes are getting GRFNVGULYHLQGRRUV Kristy Hull, CCIM dows, designed to decrease the en- stricter, said Kerry Haglund, execu- 216.453.3055 ergy lost more efficiently than tradi- tive director of the Efficient Win- ·FOHDU [email protected] tional aluminum or pure stainless dows Collaborative in Minneapolis. steel spacers. Technoform’s prod- It’s that consumers are starting to uct is made of co-extruded ask for more energy-efficient prod- Visit 1350 Euclid Avenue, Suite 300 TerryCoyne.com Cleveland, Ohio 44115 polypropylene and stainless steel, ucts in commercial and residential and it’s resistant to condensation, settings. mold and corrosion. Bill Yanek, executive vice presi- Technoform Glass Insulation is dent of the Glass Association of the North American branch of a North America in Topeka, noted Complimentary In-flight Wi-Fi German company, Technoform CONTRIBUTED PHOTO such products are important for Group. Technoform Glass started Technoform Glass Insulation North new construction and retrofitting about 15 years ago and opened its America Inc. manufacturing engineer projects. current U.S. site about nine years Jason McIntire sets up the roll-forming Overall, Haglund said, compo- ago, said manufacturing engineer station at the Twinsburg company. nents like the spacers made by Jason McIntire. The company Technoform are just part of a larger wanted to be closer to its North But domestic codes, like the Energy product, along with frames and AIR CHARTER SERVICE American customers, McIntire said, Star standard, are beginning to glass, that need to work together to AIRCRAFT MANAGEMENT and Ohio’s proximity to the major catch up to European standards, be successful. glass makers and the state’s base in McIntire said. “It all has to work together as a steel, plastics and tooling manufac- And as states that have upped system,” Haglund said. turing made it a good fit. their energy efficiency standards McIntire recognizes this. One of “The support was there,” McIn- start to attract more businesses, the the goals he mentions when talking tire said. ones lagging behind likely will be about the company’s growth is ex- Today, the Twinsburg operation, motivated to follow suit to stay tending its product lifespan. He which Technoform Glass shares competitive, he said. wants to be able to approach cus- with its sister company, Technoform Technoform “has become a ma- tomers and tell them Technoform’s Bautec, remains the company’s only jor player in the commercial win- product can help extend the war- U.S. manufacturing site. dow spacer market in the U.S.,” in ranty of their window. Product manager Laura Woods the years since the company start- The U.S. plant offers customers claims it’s the only company making ed here, said Rich Walker, president more customization than its Euro- rigid warm edge spacers domestical- and CEO of the Schaumburg, Ill.- pean counterparts, giving con- Northern Ohio’s Premier Air Charter Service ly. There are 26 Technoform Glass based American Architectural Man- sumers choices between sizes and employees in the United States, a ufacturers Association, in an colors of its spacers. Serving the area with 10 Jets number that’s been steadily increas- emailed statement. “We want to be the one-stop ing since its founding. While the construction industry shop,” McIntire said. • 24-HOUR JET CARD NOW AVAILABLE • Recently, the company was listed is still recovering from the recession To help with that goal, Techno- in the ARCOM MasterSpec, a re- and the harsh weather earlier this form Glass in Twinsburg started www.FlySkyQuest.com • 216-362-9904 source for architects. Both the spac- year, Walker said he sees stronger working with a local company to [email protected] er category for insulating glass and energy efficiency regulations on the create its own punch-cutting, or Technoform Glass were first listed rise. shear-cutting, machinery, which this spring. “Increasingly stringent energy- McIntire said will allow the compa- And Technoform Glass officials efficient codes are certainly on the ny to make rapid changes. The sound optimistic the trend will con- horizon for windows, doors and companies have been working on tinue, though they declined to skylights,” Walker said. the equipment for about a year- share sales figures. “With Energy Star version 4 near- and-a-half, he said, and he expects While the company is established ly fully implemented (except in the first machine to arrive by Sep- globally, McIntire said it seemed to the northern U.S. climate zone), the tember. set up shop in the United States a development of version 6 is already Going forward, the company has few years too early, as demand for underway. In addition to Energy plans to renovate its existing office energy-efficient products was more Star, many programs are driving and to open distribution sites developed in the European market. tighter energy-efficiency perfor- around the country and Canada.

CORRECTIONS A May 25, Page 3 story about entrepreneurial An incorrect photo appeared with the initiatives in Akron provided incomplete infor- June 1 adviser column written by Thomas mation about the creation of The Bit Factory R. Crookes, a partner in the Akron office business accelerator. Three entrepreneurs — of Vorys and a member of the firm’s labor James and Jack Hilton, as well as Austin Kettner and employment group. This is the photo — worked with the city of Akron and the Akron that should have accompanied the article, Global Business Accelerator to create the pro- “Prep for, but don’t ban politics talk.” The gram. The program is owned by the nonprofit full article can be found here: Akron Development Corp. bit.ly/1Q6LByB.

Volume 36, Number 23 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Com- - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspon- munications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price dence to Audience Development Department, Crain’s Cleveland Business, per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circu- 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- lation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. [email protected], or call 877-824-9373 (in the U.S. and Cana- REPRINT INFORMATION: 212-210-0750 da) or (313) 446-0450 (all other locations), or fax 313-446-6777. 20150608-NEWS--5-NAT-CCI-CL_-- 6/5/2015 2:41 PM Page 1

JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Don’t know where to eat? Ask Wheedle By CHUCK SODER process,” Weston said. cally is slow at 5 p.m. on Tuesdays, pose, like a corporate event or a [email protected] “Why isn’t there somewhere I it could tell the app to automatical- bachelor party. can go where people say, ‘Hey, I ly send offers to anyone who says “Eventually, we want to be the If Wheedle can convince Cleve- want to go out. What can you do for they want to go out in Cleveland for eHarmony of reservations,” Stein landers to use the app it’s about to me?’ ” he said. a happy hour on a Tuesday. said. launch, the chic restaurant Lago fi- Barley House also was among the For now, there’s only one loca- nally will have a way to target those establishments that tested the ear- tion you can choose: Cleveland. people who sit around debating ly version of the software, which is “Eventually, we want However, Wheedle plans to expand where they want to go for dinner. still available at WheedleApp.com. to be the eHarmony into Chicago next, using the money The Cleveland-based startup However, the company aims to of reservations.” it already raised. company is in the process of recruit- retrain all of them on how to use the And eventually it plans to broad- ing restaurants, bars and other en- new mobile app, which will contain – Brian Stein, en its services. For instance, maybe cofounder and president, Wheedle tertainment venues that want to use features such as “Auto Wheedling” people could one day use Wheedle the new app, which works like — which will allow establishments to shop for a hair salon or a tailor, Groupon, but in reverse: Instead of to automatically send offers to any- The software also asks how many Stein said. getting a steady stream of daily one who makes a particular type of people will attend, how much they “I could say, ‘Here are my mea- deals, people type in what they want request. each plan to spend and whether surements. I want a custom suit,’ ” to eat or do, then establishments of- For instance, if a local bar typi- they’re visiting for a specific pur- he said. fer them deals and perks in an effort to win their business. The establishment would then pay Wheedle a fee for each person who shows up. Lago, an Italian restaurant on the east bank of the Flats, and about 30 other local establishments signed up to try out an early version of the software during a three-week test run last October. Over the course of a few days, WATCH EVENT Lago sent Wheedle offers to roughly 10 people and groups. Two of them ended up making reservations, according to Andrew Czarzasty, chief SATURDAY, JUNE 13 | 10AM-5PM operating officer of the Salerno Group Restaurants. During this one-day watch event, meet with representatives from each brand. If Wheedle can get enough people We will be showcasing limited edition watches as well as previewing new collections. to use the new version of the app — which is scheduled to launch on July 9 — it could become a powerful marketing tool, according to Czarzasty. His reasoning: Why wouldn’t a restaurant like Lago want to make special offers to people who explicit- ly state that they’re planning to spend more than $30 per person on a random Tuesday night? “You’re going to say, ‘Yes, come eat here, please,’ ” he said. Wheedle aims to have at least 75 local restaurants on board when its new app launches, according to Bri- an Stein, Wheedle cofounder and president. At the same time, however, the company also needs to convince people to download and use the app TEST DRIVE A WATCH AND — which Stein said could be the company’s biggest challenge. TAKE A TESLA MODEL S FOR A RIDE “We need to grow those curves in The Tesla Model S is the world’s ﬁrst premium electric lockstep,” he said. sedan and sets the standard for 21st century performance. Wheedle plans to spend about $100,000 to market the app in con- Take one for a ride at the Alson watch event. junction with the launch. For instance, the company will be sending out “street teams” to promote the app in places like the Ware- 216 BISTRO FOOD TRUCK house District, Ohio City and Tremont. 11:30AM-2:30PM They can afford it: The company Enjoy complimentary lunch from 216 Bistro during the event. recently raised $550,000 from an individual investor and a family investment group, both of whom have experience owning restaurants. • 12 MONTHS INTEREST FREE FINANCING AVAILABLE Wheedle has restaurant experience, too. The company’s CEO, J.P. Weston, came up with the idea while • FREE WATCH WINDER with any automatic watch purchase. doing marketing for Corporate Man- agement Group, which owns restaurants like the Barley House, Town Hall and Willoughby Brewing Co. He often used social media to hunt for people having a birthday or planning to go out. He offered dis- counts, free party bus transportation and even told people they could meet the DJ. But it was hard to talk to people who didn’t already follow Barley 28149 Chagrin Blvd | 216.464.6767 | alsonjewelers.com House on sites like Facebook and Twitter. And it was “a lengthy 20150608-NEWS--6-NAT-CCI-CL_-- 6/5/2015 3:19 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015

For Sale - 23,607 SF Offi ce Building 9,000 SF also Available for Lease INTEREST continued from page 1 matchup was set, the demand for tickets was double the market for the 2007 Finals between the Cavs and San Antonio Spurs. Klang said the demand was helped by the eight- day layoff between the Warriors winning the Western Conference and the start of the NBA Finals. That gave fans additional time to book travel and schedule days off work, he said. “We’ve had quite a bit of out-of- state action,” Klang said. 225 Heritage Woods Dr., Copley, OH 44321 Scott Merk, who operates Merk’s Tickets in Brook Park, said he’s • 23,607 SF Offi ce Bldg. for Sale • Great Access to I-77 & Rt 18 been selling seats for between $400 and $7,500 for Games 3 and 4, and • 9,000 SF Available for Lease • Generous Parking he thinks there’s one way it can get • Beautiful Park-like Setting • Minutes from Restaurants, even better. If the Cavs return to Cleveland GETTY IMAGES • Open Floor Plan Hotels, and Shopping with a 3-2 series lead for Game 6 on June 16, Merk expects the price THE ‘OTHER’ CLEVELAND-OAKLAND PLAYOFF BATTLE range to be between $600 and You might remember the last The Browns played another Jack W. Drescher, CPA, SIOR $10,000. time a Cleveland team played a team from the Bay Area — the 216.861.5049 Klang agreed. club from Oakland in the postsea- San Francisco 49ers — for the [email protected] HannaCRE.com If the Cavs are up 3-2, demand for son. If not, three words — OK, All-America Football Conference the potential title-clincher, and two and a number — will refresh championship on Dec. 17, 1949. Cleveland drought-breaker, will be your memory: Red Right 88. Cleveland, led by quarterback Otto “through the roof,” he said. The Oakland Raiders defeated Graham and running back Marion the Browns 14-12 in an AFC Motley, defeated the 49ers 21-7 divisional playoff game on Jan. 4, for their fifth consecutive title. Sellers’ market 1981, thanks to Mike Davis’ The Indians have never played For some Cavs season-ticket end-zone interception of Brian Sipe the Oakland Athletics, nor the San holders, the pent-up championship in the final minute. The Raiders Francisco Giants, in the demand is a way to recoup a chunk went on to win the Super Bowl that postseason, and the Cavs’ first of the cash they spent throughout year, and the Browns suffered one playoff matchup against a team the season. of the most infamous losses in from the Bay Area is their current And because any digital ticket ex- their history. NBA Finals opponent, the Golden change has to happen via Flash It’s not all bad, though. State Warriors. — Kevin Kleps Seats, even those sales that occur on other secondary markets, the vast majority of the sales occur on the really speaks to the interest in this nator for Destination Cleveland, team-operated marketplace. series in particular.” Cuyahoga County’s convention That’s meant millions in addi- One particular sale showed how and visitors’ bureau, said the eco- Working Together to Improve tional business for Gilbert, whose crazy the hype was. nomic impact of the NBA Finals is Flash Seats charges a 23% fee to the Four Game 3 seats in the second expected to be $5 million for each the Health Care System buyer for every ticket that is resold, row of Section 109, near midcourt, game that is played in the city. plus a 5% fee to the seller if he or she went for $2,900 each on Flash The estimated impact of the first is not a Cavaliers season-ticket Seats. Once the 23% fees are fac- three rounds of the postseason was Helping employers get high-quality, holder. tored in, that’s a sale of about $3.6 million per game, which for accountable health care at a lower cost. During the regular season, the av- $14,268. Cleveland would be roughly $25 erage sales price for a ticket sold on A Cavs season-ticket holder who million. Flash Seats increased 70% year- asked to remain anonymous told “The great thing about the over-year, and there was a whop- Crain’s he sold Game 3 tickets in games being during the week (the Join us on the journey. ping 350% jump in year-over-year Loudville for a profit of $275 each Cleveland games are scheduled for sales volume for Cavs games on the — proceeds that covered what he a Tuesday, Thursday and Tuesday) Better care, better health, lower costs. market. had spent on the seats for the Cavs’ is our downtown businesses and And last week, the market previous seven playoff games at attractions should see a big spike in seemed to be as lucrative as ever. The Q. business,” Spencer said. www.betterhealthpartnership.org • [email protected] By mid-afternoon on Wednesday, That’s an area of great interest to Komoroski, who seems to champi- June 3, fewer than 51 hours after the ‘Unprecedented’ showcase Flash Seats market opened for on the merits of downtown as Games 3 and 4 at The Q, more than League sources told Crain’s that much as anyone. 100 upper-level seats for Game 3 about half of all ticket revenue “You’ll see the city showcased as had been sold for $399 and up. from the NBA playoffs goes to the they come in and out of the (ABC) About 12% of the sales for seats in league’s playoff pool, which in broadcast,” the Cavs’ CEO said. the 200 level were going for $500 or 2015 will total $14 million. “Beauty shots — all those great more. That prize money is divided things. The thing about it is the In the 100 level, almost 58% of among the players, via per-team sports teams end up being the win- the sales for Game 3 were generat- bonuses that range from $94,684 dow to the world for our cities being prices of $800 or more, and a (for the sixth seed in each confer- cause of the international media quarter of the transfers of seats in ence) to $2,479,327 (to the NBA coverage. the 100 sections were for at least champs). If the Cavs claim the “The landscape,” Komoroski $1,500. city’s first championship since added, “is going to play to hun- Club seats, which overlook the 1964, the players will divide a com- dreds and hundreds of millions of length of the court on both ends, bined $3,631,684. (If they lose, people (all over the world). In a lot were being sold for between $500 they’ll have to settle for of respects, you can say it’s an un- and $1,430, and courtside and VIP $2,795,220.) precedented level of media in our tickets had been sold for $5,000, Various estimates peg the per- marketplace for any event in Cleve- $10,000 and $15,000. home-date profit margin of NBA land’s history.” Wine & Gold United members, playoff games at more than $1 mil- The Cavs are expecting about who paid NBA Finals prices ranging lion. 750 out-of-town media members, from $25 to $100 for seats in Sec- “There’s a different set of eco- and another 150 international re- tions 200 and 212, were selling some nomics with playoff games,” the porters, for Game 3. Game 3 tickets for $490 or more. Cavs’ Komoroski said. “They’re “This is at a different dimension,” Asked about the demand for tick- played at our buildings, but these Komoroski said when asked the dif- ets on Flash Seats the day before the are NBA events. There’s a greater ference in the level of interest be- series started, Komoroski said, “I level of control, scrutiny and in- tween the 2007 and 2015 Finals. would think that would only contin- volvement than what you typically The ticket brokers concur. ue to evolve here. As we start play- see during the regular season.” And they can’t help but think ing games, the drama will continue Jackie Spencer, the public rela- about what could happen if there’s to build. It will be fun to watch. It tions and communications coordi- a Game 6. 20150608-NEWS--7-NAT-CCI-CL_-- 6/5/2015 3:28 PM Page 1

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SALT • SALT • SALT Virginia Marti changing course By TIMOTHY MAGAW years and building the foundation ready had their master’s who • Water Softener • Industrial • Food [email protected] for a future graduate school. wanted to fill gaps so they could Also, the school has been slow to get a job.” • Ice Melt • Sea Salt Bold changes are underway at embrace online learning, and Milasinovic, who is still com- the Virginia Marti College of Art within five years, Milasinovic ex- muting from New York, is plotting Call For Pricing!! and Design, including a shift in pects 60% of the school’s enroll- a complete rebranding of the ownership from the Lakewood- ment to be online. school in time for its 50th anniver- Minimum Delivery: 1Pallet based institution’s namesake and “My vision for Virginia Marti sary next year, though its name — longtime proprietor. comes from who I am, where fash- Virginia Marti College of Art and Virginia Marti Veith, now 86, has ion, business, art and design con- Design, or VMCAD for short — will sold a minority stake of the school verge,” said Milasinovic, who remain. she has operated since 1966 to Mi- served as dean of graduate studies He’s not expecting a sizable in- lan Milasinovic, an experienced at the London-based European vestment in the rebranding, given fashion industry executive who School of Economics before his that the school has so much in- most recently served as vice presi- stint at LIM College. house expertise with its faculty and dent for academic affairs and chief Milasinovic’s transformation of students. academic officer at New York the school won’t come easy. He also expects the school will City’s LIM College, a for-profit Virginia Marti’s enrollment has stay at the 20,000-square-foot school focused on the business fallen from its peak of about 300 home it owns on Detroit Avenue in side of the fashion industry. students a little less than a decade Lakewood given the current real Terms of the sale were not dis- ago to about 150 students today. estate climate, although he’d love closed. Veith will be active on the Part of the reason for that de- for the campus to be located in college’s board of directors, but cline, Veith said, has been stu- downtown Cleveland one day. complete ownership is expected to dents’ and their parents’ prefer- With his arrival in February, Mi- transfer to Milasinovic — now the ence for four-year degrees rather lasinovic also vacated the building school’s president — over the next than the two-year programs Vir- the school leased next door in or- two years. ginia Marti has pushed for years. der to consolidate the campus and Milasinovic’s vision for the Also, the public’s embrace of the cut costs. school is especially ambitious. for-profit education sector has As for Veith, she’s on board with For instance, he hopes to extend waned in recent years as the feder- Milasinovic’s plan to remake the the small college’s reach globally al government and accrediting school she’s operated for nearly by opening small offices abroad — bodies questioned whether these half a century. Milan first, with Paris and London types of schools were preparing She plans to stay busy, though, to follow — and launching ex- students to get jobs. and hopes to open a third orphan- change programs. “We’ve always run a good school age in Kenya. She opened two oth- 1-800-547-1538 Historically, the college has only and worked very hard to try to get ers with her late husband, Herb. granted associate degrees, but Mi- every graduate a job,” Veith said. “I really believe this is what was Salt Distributors Since 1966 lasinovic said the school is working “That I’ll tell you is what kept us meant to be,” she said. toward offering bachelor degrees going.” “Everything happens for a rea- that can be completed in three “We had people come in who alson.”

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Akron tire companies share space, resources

Steelastic and RMS, along with manufacturing capacity. It will pro- RMS’ strength lies in its extrusion Steelastic and RMS, both owned by Heico, Rome, N.Y.-based Bartell Machin- vide newer manufacturing tools and single roll roller die technology, ery Systems L.L.C., form the Heico and flow that generate greater effi- he said. “The SRRD technology is Tire and Rubber Group of Heico ciencies, he said, adding “we will something that RMS invented years are in a new, 100,000-square-foot facility Cos. Steelastic was purchased by also have a new fully functioning ago and still provides for the best Heico in April 1992, and not long af- lab that will house our latest tech- and most precise products of any By MIKE McNULTY pacity along with superior research ter that, Heico acquired RMS and nologies. system on the market.” Rubber & Plastics News and development facilities and Bartell to create the tire and rubber “The lab area will allow us the Massary noted that the two com- tools with the move, according to group. opportunity to accelerate our re- panies were known as industry in- Steelastic Co. and RMS Equip- Armand Massary, president of the Together, RMS and Steelastic search and development process novators in the past and are work- ment LLC are now operating under Akron-based companies. supply machinery for the tire com- and work closer with customers to ing hard to return to that status. one roof. ponent prep sector of the tire mar- develop manufacturing and tire “The size and capabilities of our After producing machinery in ket. Steelastic makes radial belt and Combining resources technologies,” Massary said. technical staff have and will contin- separate but adjacent buildings for body ply systems, bead apexing sys- ue to grow, and we are very focused years, the two companies have Bringing Steelastic and RMS to- tems, cap strip systems and inspec- Solid growth at this time on becoming more in- moved to a much larger plant in gether under one roof facilitates tion systems. RMS produces extru- novative,” he said. Akron. combining various resources — in- sion systems, roller die head Growth of the two companies That is why the companies are Manufacturers of automated ma- cluding sales, engineering, produc- technology, air spring building sys- has been rapid during the last sev- investing so heavily in the business- chining systems for the global tire tion and others — to make them tems and hose building systems. eral years, Massary said, and the es, Massary said. industry, the companies have set up “more efficient from both a sales They primarily serve the passen- move was needed to support the The focus of the businesses is to their operations in a new 100,000- and marketing perspective as well ger radial, truck and bus radial, off- companies’ business strategy and “own the component prep sector,” square-foot facility that features a as project execution,” he said. the-road tire, aircraft track, indus- growth plans. he said. state-of-the-art laboratory along They moved from much smaller trial hose, air spring and conveyor He said Steelastic has a long his- It has a detailed strategy plan in with a research and development sites in Akron and their combined belt industries. tory of being a business that works place that is being executed to po- operation and office space that workforce of about 100 was not im- “We sell to every major tire man- hard for, and with, customers. “We sition the companies’ products and spans about 15,000 square feet. pacted. ufacturer and have equipment in supply high-quality products that technologies to be the best across Steelastic and RMS completed “We are fortunate to be able to 60-plus countries around the are reliable and provide great value the globe, Massary said. the move on March 1, but the com- bring our resources together to pro- world,” Massary said. “In total, we to our customers, and we have for panies won’t have a ribbon cutting vide our customers with the top- have sold more than 800 machines years. We are known as the industry McNulty is a senior reporter for ceremony and open house until level services they have come to ex- in our 40 years of doing business.” standard for our belt systems and Rubber & Plastics News, a sister June 19. pect from Steelastic and RMS,” He said the move to larger quar- have the best bead apexing systems publication of Crain’s Cleveland They gained more production ca- Massary said. ters will afford the company more in the world.” Business.

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PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION A level field Last week, online retail juggernaut Amazon began collecting sales taxes from Ohio customers. The decision was part of an announcement that the Seattle-based company would invest $1 billion in three data centers in the Columbus suburbs, creating more than 1,000 jobs in the state over the next few years. Getting Amazon to collect sales taxes in Ohio is a big deal, but there are thousands of other FROM THE PUBLISHER e-commerce sites that still skirt sales-tax collection here, including third-party sellers who use Amazon to peddle their wares. When excitement becomes obsession Our tax system badly needs updating to level the Wile E. Coyote caught the Road Run- session to a disorder. teenagers’ first kiss: terrific but terres- playing field between bricks-and-mortar stores and ner once. Forget about an elephant in the trial. online retailers. It happened in “Soup or Sonic,” an room, the years of close calls, disap- It might be a week before we do, but animated short made in 1980, years af- pointment and heartbreak now take up we’re still going to have to get up for Certainly there is room for online commerce in the ter Warner Brothers’ best work. a stadium section in our psyche. work or school. Still going to have to realm of retail, but local stores should be able to At the end of the cartoon, Coyote You cannot go to an Indians, Browns clean our bathrooms and scoop the lit- compete for business. And that is hard to do when bear-hugs the leg of Road or Cavaliers game without ter. Our identity as a hard-luck sports your online competitor offers what amounts to a Runner, who had grown to feeling the weight of 51 years town is an easy and comfortable role to about 10 times his original in the air. play. We’ve performed it brilliantly for steep discount for the same goods by failing to size moments earlier. Coyote I am worried that we have decades. But that’s going to need to collect taxes. If mom-and-pop stores and even puts on a bib and grabs a become Wile E. Coyote, and end. Changing something that’s be- big-box retailers have to close, imagine what would knife and fork. that we somehow now define come so rote might not be easy. become of your town. Imagine what would become After the two rivals ex- ourselves — and have been When the drought ends, we’ll have a change a glance, he then defined — by the fruitless great opportunity to wash ourselves of the tax base and the services it funds. looks toward the audience chase and the fruitless chase clean of defeatism, of gloom, of inferi- When you buy something in a physical store, the and holds up two signs. alone. ority. To put our collective psyche on retailer is legally required to collect sales taxes as part “Okay, wise guys, you al- JOHN When that chase ends and the same soaring trajectory as the city of the transaction. Buy the same item online, though, ways wanted me to catch our city finally wins, hopeful- itself. him.” CAMPANELLI ly before we turn our calen- That’s what a championship can do. and the burden shifts from retailers to consumers, “Now what do I do?” dars to July, will we cheer and It’s what so many of us have wanted who are now responsible to report and pay the sales Then the credits roll. party and parade … and then, some- to be our whole lives: champions. It will tax to their state department of taxation. It’s such an awkward moment, and it time in July, hold up a sign: “Now what be time to act like one to, embracing it And let’s be honest. Only a small fraction of people feels completely wrong. do we do?” and looking ahead. It will be time to get The fun built up over decades of car- I’m actually not worried that will off the sports psychiatrist’s couch and voluntarily pony up the sales tax owed on online toon chases is simply … ruined. happen. Instead of being like that do something else besides wallow and purchases when they file their returns. According to I’ve been thinking about that scene dreadful cartoon, the end of our chase grumble. the National Conference of State Legislatures, Ohio over the past two weeks, and I’m a bit is going to be great, but it will probably First thing? We’ll be able to answer lost more than $300 million in uncollected sales worried — worried that over the past not live up 51 years of buildup. I’m not that sign. five decades, Cleveland’s championship going to go as far as to use the word “an- “Now what do we do?” taxes from e-commerce sales in 2012. drought has gone from a chase to an ob- ticlimactic,” but it may be like many Win another. In the wake of the deal with Amazon brokered by JobsOhio, the state’s privatized business development agency, officials declined to estimate the potential sales tax windfall for Ohio. But Paul TALK ON THE WEB Misener, vice president of global public policy for Re: Kasich as No. 2? Nah consulting firms are filling their swim- vacate the property and move on to the Amazon, did. He said Ohio could see $150 million to ming pools. next town. Then guess what? You have Any “political scientists here in the — Jennifer another vacant eyesore. $300 million in sales taxes added to its coffers if a Buckeye State” who see John Kasich as How about tearing up the remains of national requirement for all online retail purchases veep are woefully poor practitioners of the old Geauga Lake and letting nature their trade. Re: Meijer sizes up was established. take it over? Not everyone wants to see — Peter Jensen Geauga Lake land And that’s what needs to happen. Congress needs the countryside get turned into a city. to get serious about finally passing the Marketplace Not everyone wants to see shopping — Robert Bailey Re: Lakewood activists center after shopping center, especially Fairness Act, which would create an equitable tax sue Cleveland Clinic when a block down the road you have a Re: Getting ready system among the 45 states with a sales tax. The MFA bunch of vacant stores within the Tar- would allow states to force remote retailers to collect $400 million. get/Walmart/Home Depot shopping for the GOP in 2016 Ouch, that hurts, Toby, doesn’t it? a sales tax even if they have no physical presence in area. Talk about sad. There are two things I wish would be — CCF juggernaut I live just down the road from there, done. that state. and the last thing Aurora and Re- First, because many visitors will take The time has come to take away the unfair Re: Growth of minderville needs is more urbanization, the rapid, it would nice if the trash along advantage that online retailers have enjoyed for far Gabriel Partners more traffic congestion, and more crap the tracks would be cleaned up. too long over traditional sellers. It’s time to allow from the inner city moving into the Second, the North Marginal Road Anti-money laundering work = area. must be resurfaced. It is not drivable them to compete fairly on price. $$$$$$. Will it bring in more tax revenue? Sure now. Banks are hemorrhaging money, and for about 10 years, until they decide to — David Oloughlin 20150608-NEWS--11-NAT-CCI-CL_-- 6/4/2015 3:20 PM Page 1

JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 LETTER TO THE EDITOR I am responding to Dave Black’s and discuss possible amendments history of the Republic. “scary” concerns regarding the at any time, without fear of a No such convention has ever Convention of States project in his “runaway” because of the 3/4 been called because there has nev- Personal View, “Amendments can states rule. er been an application from two- be a scary step,” in the May 11 is- Article V of the Constitution thirds of the states for a single sub- sue of Crain’s. gives all 4,000 state legislators ject. His assessment of how Article V equal authority with the 535 “elit- The “subject” in all state appli- actually works is disjointed at best. ist” members of Congress. cations for the Convention of First of all, there is zero possibil- Either group can propose States must be “limited to propos- ity of a “runaway” Constitutional amendments, but only the states ing amendments to the Constitu- Convention. can ratify. tion of the United States that im- A convention can only propose Black’s “claim” that there is no pose fiscal restraints on the federal amendments and any that are legal precedent for requiring 3/4 of government, limit the power and adopted must be approved by 38 states to ratify is wrong because jurisdiction of the federal govern- states. Article V plainly states that amend- ment, and limit the terms of office There have been several thou- ments can be adopted “when rati- for its officials and for members of sand amendments proposed in fied by the legislatures of three Congress.” Congress since 1789, and only a fourths of the several states.” The separation of powers has PROUD SPONSOR OF RELAY FOR LIFE fraction of a percentage of those Currently, Ohio is one of 38 been severely damaged in the last received enough support to actual- states that have begun the process 50 to 100 years. ly go through the constitutional of passing “applications” for an Ar- The federal bureaucracy is out of ratification process. ticle V convention. control and must be reined in to Saturday, June 20 Adopting new amendments to There are four states that have give back the power to the citizens the Constitution is not supposed completed their applications — through their state governments. 12:00PM-12:00AM to be an easy process. Georgia, Florida, Alaska and Alaba- You can get full information on MAYFIELD HIGH SCHOOL That’s why only 17 amendments ma. the Convention of States project at have been ratified since the origi- There have been more than 400 www.conventionofstates.com. nal 10 in the Bill of Rights. applications from state legislatures — Jim Petsche elkandelk.com/relayforlife Members of Congress can meet for an Article V convention in the Macedonia

TALK ON THE WEB (CONTINUED) Re: Trauma drama Timothy Magaw’s June 1 article, over Northeast Ohio to extract trau- BE WHERE “A tale of two trauma centers,” was ma victims. The Northern Ohio Trauma Sys- very well-written — the most clear Remember that NOTS involves tem, or NOTS, started five years to date by a reporter. all the CCF system, which exceeds YOU WANT ago, and UH was invited four years I hope the media will watch for the size of the UH system, and ago. UH was grumpy to not be UH attempting to “cherry pick” or Metro picks up from many small, brought in on a new, possibly TO BE limit their trauma care to desired unaffiliated centers all over NEO. about-to-fail system? (No one knew clientele. — UH disbeliver if NOTS would succeed at first, I am They suggest a broad reach for sure). their level 1 trauma scope (i.e., MVA Re: The rise of Quit your belly-achin’ UH. You victims far from UH), but neglect to are all about the $$$$$. You are do- mention the “knife and gun club” Merwin’s Wharf ing this for revenue, not the better- members that live next to UH. Will LOVE this concept and implement of mankind! their doors swing wide to accept mentation! Let us help you get there. We help business owners Now Cleveland’s people need to Psst, UH, trauma is an expensive those as well? That is their premise plan for and implement a successful exit strategy. business — be ready to shell out big for a trauma center on the East reward the effort with food and bucks. Side, after all. recreation dollars. Increase Value. Minimize Taxes. Protect Assets. — Friendlier By the way, Metro’s copters fly all — Dan Morgan

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015

GOING PLACES Send information for Going Places to [email protected] Join the leadership JOB CHANGES CONSTRUCTION that is PCS: Debbie Coakley to director transforming of business development. ENGINEERING health care. Coakley Yannucci Boyson Klein AUSTIN CO.: Mark Hamilton to senior electrical engineer; Aleks Daukss to senior estimator; Biljana Radic to mechanical engineer; Bianca Holtier to purchasing agent; Eric Spitzer to architectural The challenges facing health care today designer. can only be met by strong leadership, FINANCE collaboration across disciplines and FIRST FEDERAL LAKEWOOD: Roddy Norris Valponi Molten creative thinking. Anthony Yannucci to vice president, commercial real estate loan officer. LEGAL The Cleveland Clinic-Weatherhead Executive MBA at BOARDS FINANCIAL SERVICE Case Western Reserve University combines Weatherhead’s RENNER, OTTO, BOISSELLE CORRIGAN KRAUSE CPAS: & SKLAR LLP: Bonnie Smith breakthrough business concepts of leadership in man- RAINBOW BABIES & CHILDREN’S Christine M. Eichmuller to associate patent attorney. FOUNDATION: Jill Goubeaux agement with Cleveland Clinic’s innovation in health care to manager, tax services; Lisa Clark to president; Terri A. to make this program the premier option for experienced Satonick to human resources NONPROFIT Kennedy to vice president/ professionals in health care. manager; Susan G. Johnson ELIZA JENNINGS: Richard M. treasurer; Jocelyne K. Linsalata to bookkeeper. Boyson Jr. to president and CEO. to vice president/secretary; NACM GREAT LAKES REGION: Robin L. Baum, Stacey L. Hanna, INSURANCE Michelle L. Snyder and Stephanie Application deadline is June 15, 2015. Jim Hugo to membership consultant, DAWSON COS.: Laura Park Greater Cleveland and Northern Ohio. Antunez to vice presidents; Dinah Learn more and apply today at weatherhead.case.edu. to rating specialist. Kolesar to immediate past president. REAL ESTATE MANUFACTURING ALLEGRO REALTY ADVISORS AWARDS BABCOX MEDIA: Michael Madej LTD.: Ben Klein to associate, to director, digital media. strategic advisory services. GREATER CLEVELAND COMMUNITY SHARES: Betsie MARKETING STAFFING Norris (Adoption Network Cleveland) FALLS COMMUNICATIONS: Allison ANCHOR MEDICAL STAFFING: received the Eleanor R. Gerson Baker to account supervisor; Elaine T. Hollo to vice president; Leadership in Social Justice Award. Katherine Cameron and Ansley Katie Drdek to director of OHIO ASSOCIATION OF CHILD Fairport Asset Management Gogol to assistant account staffing/sales; Bridgette Coljohn CARING AGENCIES: Betsie Norris executives; Erin Foster to art to staffing coordinator/recruiter; (Adoption Network Cleveland) is pleased to announce director; Samantha Gasco and Wendy Rosado to office received the Virginia Colson Award Dawn Kaczynski to account assistant/compliance. for Service to Families and Children. executives; Melissa Gutschmidt DIRECT RECRUITERS INC.: Brian that Rachel A. Margulis, to senior account executive; Linda ST. EDWARD HIGH SCHOOL: Mark Roddy to project manager, public J. Valponi (Taft, Stettinius & Hollister Rodriguez to accounting manager; safety and government practice. Aaron S. Nuti and Jordan Testerman to senior account LLP) received the 2015 Legal Eagles supervisor. Man of the Year Award. Joyce A. Zak have been Rachel A. Margulis, CPA/PFS TECHNOLOGY UNIVERSITY SCHOOL: Donald C. STEVENS STRATEGIC OECONNECTION: Michael Molten Jr. (University School) promoted to Advisors COMMUNICATIONS: Meredith Crowdes to product manager, received the 2015 Alumni Graduate Traxler to office manager. ecommerce solutions. Award. at the ﬁrm. STAY CONNECTED WITH CRAIN’S

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 Juventas drug misses goal, still has promise By CHUCK SODER other, more objective tests that fering from different degrees of icantly better than those who re- Juventas, however, planned from [email protected] measure the size of a patient’s heart heart failure. ceived a placebo. the start to conduct a separate and how much blood it expels on The results were informative, That’s a larger subgroup than the analysis on the most severe heart Juventas founder Marc Penn did- each squeeze. Aras said. one Juventas is relying on. Howev- failure patients. n’t sound too concerned about the But the 10 patients who received “We’re happy with them. We’ve er, Juventas’ data is cleaner in one The idea of conducting a follow- fact that the company’s experimen- the largest dose of the drug, JVS- learned a lot,” he said. respect, according to Dr. David on Phase II study that focuses on tal drug failed to achieve its prima- 100, continued to improve by “clin- Granted, it obviously isn’t good Hooper, the senior scientific advis- severe heart failure patients “looks ry goal during a recent Phase II clin- ically meaningful” margins, Penn for a clinical trial to miss its prima- er at Clinical Research Manage- reasonable,” Hooper said, after ical trial. stated. Patients who received a ry endpoints. ment, a Hinckley-based company checking out publicly available Sure, heart failure patients who re- smaller dose showed slight im- For instance, another Cleveland that helps researchers conduct data from the trial. ceived the drug didn’t do all that provement as well. company, Athersys, saw its stock clinical trials. It make sense that the drug much better than those who re- Both Penn and CEO Rahul Aras price plummet in April, after its Hooper thought Athersys’ sub- would have a bigger impact on pa- ceived a placebo. downplayed the importance of stem cell therapy missed its prima- group data was interesting. Howev- tients with severe heart problems, But several data points suggest missing the primary endpoints. ry endpoints during a Phase II trial er, he noted that Athersys defined Penn said, citing data from previ- that the drug might be able to help They both described the trial as targeting stroke patients. its subgroup after the company re- ous studies conducted by Juven- patients whose hearts are in particu- “exploratory.” The stock fell despite the fact that ceived data from the trial, which tas. larly bad shape. It was designed to test different a subgroup of 27 patients who re- leaves room for bias to creep into “We actually predicted that That data — which came from a doses of the drug on patients suf- ceived treatment earlier did signif- the data. would be the case,” he said. group of 10 patients — has con- vinced the Cleveland company to start designing a second Phase II clinical trial that aims to enroll up to 200 patients in the high-risk heart failure category, Penn said. Juventas and its investors believe that there’s “every reason” to conduct a follow-up trial, said Penn, who also is director of cardiovascu- lar research at Summa Health Sys- tem in Akron. So why did the drug — which tells the body to send stem cells to the site It pays to tend of an injury — fail to hit its primary goal? For the most part, patients who received the drug showed significant improvement 12 months after re- ceiving treatment. to your fl ock. But so did patients who received a placebo. In both groups, most patients were able to walk further in six minutes one year later, and they filled out surveys suggesting that they are enjoying a higher quality of life. Over the past 5 years, employee However, placebo patients with out-of-pocket expenses have more severe heart problems didn’t 1 improve much on those two mea- risen nearly 40%. sures — the trial’s “primary endpoints.” And they actually deteriorated on Afl ac can help protect your employees with cash to cover their bills in the event of a covered Crain’s 2015 sickness or injury. And now employees’ claims can get paid in a day with Afl ac’s One Day PaySM program when they submit online.2 nominations Nominations are now open for all Small businesses like how easy it is to add of Crain’s Cleveland Business’ voluntary coverage to their benefi ts at no 2015 programs. Deadlines for direct cost. Especially when it is from Afl ac, each of the programs are: the number one provider of worksite/voluntary insurance sales for 13 consecutive years.3 Afl ac ■ Crain’s 52 — may even be a pre-tax deduction, so when we Nomination deadline: June 22 say it pays to tend to your fl ock, it just might. ■ CFO of the Year Awards — Nomination deadline: July 10 Call your local agent and visit afl ac.com/smallbiz ■ General & In-House Counsel Awards — Nomination deadline: Aug. 21

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Turning Passion Into Purpose WITH THE CLEVELAND FOUNDATION

THE HIGLEY FAMILY Building for Cleveland’s Future $23 MILLION GIFT IS THE THIRD-LARGEST IN CLEVELAND FOUNDATION HISTORY AND HONORS BEVERLY AND ALBERT M. HIGLEY JR.’S WISHES OF SUPPORTING THE COMMUNITY IN PERPETUITY

or nearly two decades, the Higley Fund “Our parents believed in this community and be- of the Cleveland Foundation has granted lieved in the value of giving back to create oppor- more than $8.1 million to 175 nonprof- tunities for others,” said Bruce G. Higley, Chair- F it organizations throughout Greater man of The Albert M. Higley Co. and president of Cleveland with a focus on basic needs The Higley Fund. “Their legacy as true champions like food, clothing, shelter of the people and places that and medical care. Now, with make Cleveland a great home a recent $23 million estate gift will now endure permanently from Beverly and Albert M. through the Cleveland Founda- Higley Jr.,– the third-largest gift tion so future generations can in the foundation’s 101-year EHQHÀW IURP WKHLU SDVVLRQ IRU history – the fund will sub- our community.” stantially increase its capacity to serve those in need and $QG MXVW DV +LJOH\ EXLOGLQJV become the single largest have a sense of permanence and supporting organization of stature among the academic the Cleveland Foundation. campuses, medical centers and corporate parkways they an- The Albert M. Higley Co. was chor, The Higley Fund is a con- founded in Cleveland’s roaring crete representation of the pur- twenties and has been chaired pose-driven lives of the family. by three generations of Hig- leys for 90 years. It’s one of “Al and Beverly’s philanthropy the most respected family-led was guided by their humility, businesses in the region, and compassion and unwavering Northeast Ohio’s landscape is belief in what is right,” said Ronn Richard, President & ÀOOHG ZLWK FRQVWUXFWLRQ SURM- Albert M. Higley, Jr. and his wife, Beverly, dedicated their fund to serving those in CEO of the Cleveland Foun- HFWVFRPSOHWHGE\WKHÀUPDW need in the Cleveland community. With dation. “We are honored to some of the area’s most ven- this record-setting gift their legacy will erable commercial centers and continue to assist future generations. work with The Higley Fund institutional campuses. With a to ensure that this legacy of kindness and humanity lives SRUWIROLRRIPRUHWKDQFRPSOHWHGSURMHFWV it would be rare if someone living and working on through impactful grantmaking that meets the in Northeast Ohio had not set foot in a building needs of our community.” touched by the Higley Company. Among the publi- The Higley Fund, established by the couple in 1994, cized ground breakings and celebrated ribbon cut- has contributed to organizations ranging from the tings, however, has been a family with strong val- Greater Cleveland Chapter of the American Red ues working diligently to support another essential Cross and The Salvation Army of Greater Cleve- framework: the social safety net.

June 8, 2015 WWW.CLEVELANDFOUNDATION.ORG/PURPOSE 20150608-NEWS--15-NAT-CCI-CL_-- 6/4/2015 8:34 AM Page 1

The Higley Family. (Far left:) Clockwise from bottom left, Sharon Higley Watts, Brian Higley, Bruce Higley, Beverly Higley, and Albert Higley, Jr. (Top right:) Albert M. Higley, Sr. (Bottom right:) His wife, Mildred Higley

land to the Cleveland Sight Center and the Greater need it most, the example of a man who lives hon- Cleveland Food Bank, through which the fund has estly, and mercifully, and sincerely.” provided more than 800,000 meals. The fund also The same words could be used to describe Al Hig- supports a scholarship program through the Mandel ley, Jr., who followed in his father’s footsteps, both in School of Applied Social Sciences at Case Western business, and in his commitment to the community. Reserve University and recently awarded $1 million to the school to establish the After attending Denison Albert and Beverly Higley University and serving in Research Commons. “AL AND BEVERLY’S WKH.RUHDQ:DUKHMRLQHG The Albert M. Higley Co. The Higley family has been PHILANTHROPY WAS where he served as chair- an integral part of the Cleve- man and CEO from 1971 land community for more GUIDED BY THEIR to 1998. He, too, served on than 150 years. Its legacy of HUMILITY, COMPASSION the board of the Red Cross giving began with Al’s father, AND UNWAVERING BELIEF and Rotary Club of Cleve- “Ab,” who founded The Al- land as well as The Salvation bert M. Higley Co. in 1925 IN WHAT IS RIGHT” Army of Greater Cleveland, and went on to serve on and Cuyahoga County Children chair numerous civic and and Family Services and the community boards includ- United Way of Greater Cleveland. Seeking a philan- ing the Cleveland Chamber of Commerce, the Great- thropic partner, Albert and his wife, Beverly, estab- er Cleveland Chapter of the American Red Cross, and lished a fund with the Cleveland Foundation. Togeth- the Shaker Heights School Board. HUWKH\VSHQW\HDUVHQMR\LQJFKDULWDEOHJUDQWPDNLQJ In 1946 Louis Seltzer, editor of the Cleveland Press, DQGSOD\LQJDQDFWLYHUROHLQQRQSURÀWRUJDQL]DWLRQV described his life as the “story of a builder, but not and causes throughout the community. Al passed a builder of bricks and mortar alone… Ab Higley away in 2012, and Beverly in 2014. has built character and leadership, and sympathetic “For our family, giving began at home – with our consideration for his fellow men, a compassion for parents and in our community,” said Sharon Hig- those who need the ministrations and understand- ley Watts, First Vice President of The Higley Fund. ing of others. He has built himself, and in the doing “We are proud to continue our partnership with the RIWKDWKHKDVKHOSHGKLVFLW\LQÀQLWHO\PRUHWKDQ Cleveland Foundation to ensure that everyone has all of the other buildings he has put up, because access to services and opportunities that can create he is giving to his family, to his community, to his a better life.” friends, to his associates, at the very time all of us

FACEBOOK: THE CLEVELAND FOUNDATION | TWITTER: @CLEVEFOUNDATION Crain’s Cleveland Business 20150608-NEWS--16-NAT-CCI-CL_-- 6/4/2015 3:56 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 TAX LIENS Are you ready The Internal Revenue Service filed tax A to Z Auto Service Inc. Fountain Anti Aging LLC liens against the following businesses 13747 State Road, North Royalton 29111 Center Ridge Road, Westlake for April in the Cuyahoga County Recorder’s ID: 13-4271845 ID: 20-5109466 showers and Office. The IRS files a tax lien to Date filed: April 15, 2015 Date filed: Aug, 19, 2014 protect the interests of the federal Type: Employer’s withholding Date released: April 7, 2015 May flowers? government. The lien is a public Amount: $8,507 Type: Employer’s withholding, notice to creditors that the unemployment government has a claim against a Dogtopia Ltd. Amount: $11,974 CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS! company’s property. Liens reported 480 S. Green Road, South Euclid here are $5,000 and higher. Dates ID: 42-1620555 Great Northern Management Inc. listed are the dates the documents Date filed: April 7, 2015 6430 Eastland Road, Cleveland were filed in the Recorder’s Office. Type: Employer’s withholding ID: 34-1317120 Providing Commercial & Multi-Family Landscaping Service Since 1995 Amount: $6,515 Date filed: Dec. 3, 2014 Date released: April 15, 2015 LIENS FILED Northern Interiors Ltd Type: Employer’s withholding 22082 Lorain Road, Fairview Park Amount: $20,514 ID: 34-1938614 Aorp Corp. 1-800-Radiator Date filed: April 21, 2015 J Schrader Co. & AC of Ohio Type: Employer’s withholding 4603 Fenwick Ave., Cleveland 25975 Emery Road, Suite G., Amount: $6,218 ID: 34-0207795 Cleveland Date filed: Nov. 29, 2011 ID: 45-3848471 Ezzat Inc. Unity Food Market Date released: April 15, 2015 Landscape Maintenance Date filed: April 24, 2015 10221 Union Ave., Cleveland Type: Employer’s withholding Type: Employer’s withholding, ID: 55-0916244 Amount: $19,477 Lawn Fertilization • Mowing • Trimming & Edging unemployment, corporate income Date filed: April 15, 2015 Innovative Design • Landscape Construction • Mulching Amount: $14,344 Type: Employer’s withholding, Mars Group Inc. Action failure to file complete return Pest Control R Engineering Team LLC Amount: $6,009 P.O. Box 18721, Cleveland Tucker Landscaping Inc. • 986 Broadway Avenue • Bedford, Ohio • 44146 P.O. Box 91746, Cleveland (440) 786-9840 • Tuckerlandscaping.net ID: 34-1756832 ID: 26-3681922 Date filed: Feb. 5, 2015 Date filed: April 15, 2015 LIENS RELEASED Date released: April 7, 2015 Type: Employer’s withholding Type: Employer’s withholding Amount: $15,124 Alert Door & Operator Co. Amount: $10,733 5534 Pearl Road, Parma Fortune Galore Inc. ID: 34-10059766 Miega Inc. Bo Loong Restaurant Date filed: Feb. 5, 2015 3820 Superior Ave. E, Cleveland 3922 Saint Clair Ave. NE, Cleveland Date released: April 7, 2015 ID: 90-0676858 ID: 34-1788514 Type: Employer’s withholding Date filed: Dec. 30, 2014 Date filed: April 15, 2015 Amount: $26.586 Date released: April 21, 2015 Type: Employer’s withholding, Type: Corporate income unemployment Berry Insulation Co. Amount: $8,753 Amount: $14,892 1600 E. 25 St., Cleveland ID: 36-4628732 National City Chiropractic Center Date filed: July 18, 2014 Mortgage Services Inc. of Solon Inc. Date released: April 21, 2015 4100 W. 150 St., Cleveland 33414 Bainbridge Road, Solon Type: Employer’s withholding, ID: 26-2783255 ID: 34-1257924 unemployment Date filed: Nov. 16, 2012 Date filed: April 15, 2015 Amount: $73,866 Date released: April 21, 2015 Type: Employer’s withholding Type: CIVP Amount: $14,532 Berry Insulation Co. Amount: $499,887 1600 E. 25 St., Cleveland RSD Landscaping LLC ID: 36-4628732 Pro Surplus Inc. DeWeese Landscaping Date filed: Nov. 30, 2011 21425 Aurora Road, Bedford 185 Willow Lane, Chagrin Falls Date released: April 21, 2015 ID: 27-1803119 ID: 32-0277111 Type: Employer’s withholding, Date filed: Jan. 22, 2014 Date filed: April 24, 2015 unemployment Date released: April 7, 2015 Type: Partnership income, Amount: $15,579 Type: Employer’s withholding failure to file complete return Amount: $19,797 Amount: $14,068 Berry Insulation Co. 1600 E. 25 St., Cleveland Ran-Dan Transport Inc. Greenwich Partners LLC ID: 36-4628732 2506 Grovewood Ave., Parma 1109 Carnegie Ave., Cleveland Date filed: Feb. 9, 2012 ID: 92-0184993 ID: 27-2941122 Date released: April 21, 2015 Date filed: Oct. 29, 2010 Date filed: April 15, 2015 Type: Employer’s withholding Date released: April 24, 2015 Type: Employer’s withholding, Amount: $10,193 Type: Employer’s withholding partnership income Amount: $23,116 Amount: $11,694 Blue Tee Golfer Inc. 8304 Dogwood Lane, Parma Sunshine Flowers Inc. Action General Services Inc. ID: 34-1739015 6230 Stumph Road, 20600 Chagrin Blvd., Suite 350, Date filed: Oct. 17, 2014 Parma Heights Cleveland Date released: April 15, 2015 ID: 20-0648677 ID: 42-1750591 Type: Employer’s withholding, Date filed: July 3, 2007 Date filed: April 24, 2015 failure to file complete return Date released: April 15, 2015 Type: Employer’s withholding Amount: $9,489 Type: Employer’s withholding Amount: $11,534 Amount: $9,852 D & O Leasing Inc. Care the Wrightway Inc. 883 Addison Road, Cleveland United Towing Services Inc. 756 E. 185 St., Cleveland ID: 34-1297801 3929 Superior Ave. E., Cleveland ID: 45-4740431 Date filed: Nov. 22, 2013 ID: 34-1873545 Date filed: April 7, 2015 Date released: April 7, 2015 Date filed: March 13, 2015 Type: Employer’s withholding Type: Employer’s withholding Date released: April 15, 2015 Amount: $11,144 Amount: $23,364 Type: Employer’s withholding Amount: $14,147 Sky Mobil Inc. Sky Mobil Dzugan Method-Ohio LLC Plus Urban Care 29111 Center Ridge Road, Westlake Wanton-Horne Chapel of 11100 Lorain Ave., Cleveland ID: 27-1973663 Peace Funeral Home Inc. ID: 20-3553891 Date filed: Sept. 22, 2014 12519 Buckeye Road, Cleveland Date filed: April 15, 2015 Date released: April 24, 2015 ID: 34-1725612 Type: Employer’s withholding, Type: Employer’s withholding, Date filed: Aug. 6, 2013 employer’s annual federal tax return unemployment Date released: April 24, 2015 Amount: $8,844 Amount: $5,498 Type: Employer’s withholding Amount: $10,555 Suburban Veterinary Hospital Inc. Etcetera Services Inc. Houswork 5257 Warrensville Center Road, Etc and Unpacking Etc. Wonder Go Inc. Maple Heights P.O. Box 40041, Bay Village 6442 Metro Court, Suite K, Bedford ID: 26-0352008 ID: 34-1816713 ID: 34-1761991 Date filed: April 7, 2015 Date filed: Aug. 10, 2010 Date filed: Oct. 5, 2005 Type: Unemployment, Date released: April 21, 2015 Date released: April 15, 2015 corporate income Type: Employer’s withholding Type: Employer’s withholding Amount: $8,623 Amount: $15,597 Amount: $9,650 20150608-NEWS--17-NAT-CCI-CL_-- 6/4/20152:27PMPage1 CRAIN’S MIDDLE MARKET Jakprints: Cleveland-based folder printingat The supplychainfor Jakprints: at fufillment for T-shirt order The supplychain T R OFINISH TO START How companieslike Jakprintscontrolthequality of theirproductsevery stepoftheway ILLUSTRATION BYCHIBIRMINGHAM; INFORMATIONCOMPILEDBYRACHEL ABBEYMCCAFFERTY E ETPAGE SEE NEXT 20150608-NEWS--18-NAT-CCI-CL_-- 6/4/2015 2:27 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 KEEPING WATCH DOWN THE LINE Supply chain management is an important process that can’t be overlooked by middle market firms

By RACHEL ABBEY McCAFFERTY Relationship building [email protected] Globalization has made it so Supply chain management is companies have to really do their about more than just cutting costs due diligence when selecting a sup- and verifying quality — it’s an im- plier that aligns with the behaviors portant step toward making sure a they expect, said Oya Tukel, chair company’s suppliers are paying fair of the operations and supply chain wages, following safety regulations management department at Cleve- and behaving ethically overall. land State University’s Monte Ahu- Middle market companies may ja College of Business. hold less sway over suppliers than “Lot of times, suppliers over- larger corporations, experts say, promise and under-deliver,” she but being clear with expectations said. and creating long-term relation- Creating long-term relationships ships can go a long way. with suppliers can help address When establishing supplier rela- that. Those types of suppliers un- tionships, it’s important to have a derstand their customers’ beliefs supply chain strategy that clearly and can act accordingly, Tukel said. outlines your company’s vision, Jakprints Inc. in Cleveland has a philosophy and expectations, said relationship-driven supply chain, James Domingo, president of The said CEO Nick DeTomaso. Domingo Group LLC in Twins- Suppliers have to align with the burg, which aims to help industri- printer’s strong ecological values, al manufacturers grow. he said, which has led to the com- Domingo had a long career at pany using mostly domestically Swagelok Co. before starting his sourced, responsibly forested pa- own business. per for that part of its business. Price is an important factor when The company’s product develop- selecting a supplier, but “capabili- ment team reviews potential sup- ties and reliability” are often even pliers to make sure their business more critical, Domingo said. ethos matches Jakprints’, DeToma- Domingo suggests having a dards to suppliers. requests for comment. Employee Code of Ethics to asking so said. “checklist” of points on which to Companies can say that they’d The company’s supply chain was suppliers to phase out tail docking But as a printer, Jakprints — assess potential suppliers, includ- like to see certain safety practices brought into question after evi- by 2018 when possible. which has grown from annual rev- ing product quality, attention to implemented at a business in order dence of animal cruelty surfaced at “Willful mistreatment or cruelty enues of about $5.5 million in 2005 health and safety and approach to to use them as a supplier. one of its suppliers in November to animals will not be tolerated,” to $25 million last year — is also fa- environmental issues. “With good conscience, we can 2014. the company said as part of its ani- miliar with being part of another By outlining your company’s demand and expect that of suppli- In March, the company updated mal welfare policy on its website. company’s supply chain. principles, it becomes clear who is ers,” Domingo said. its animal welfare policy. The poli- “High quality dairy products be- Overall, communication is criti- and who is not a good fit. And, he A local example can be found at cy clearly outlines expectations for gin with high quality milk from cal, DeTomaso said, especially said, it’s important to have a way to Great Lakes Cheese in Hiram, suppliers, from requiring dairy well-cared for and humanely-treat- when Jakprints becomes a larger clearly communicate those stan- which did not respond to repeated farm employees to sign an annual ed animals.” See SUPPLY, page 20 20150608-NEWS--19-NAT-CCI-CL_-- 6/4/2015 2:37 PM Page 1

JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

TAX TIPS CARL GRASSI Dividends are a key planning item

There are many reasons corpora- An audit on the accumulated prospectively because S corpora- this issue has varied over the years. tions decide to not pay dividends to earnings issue can be time consum- tions are not subject to the accu- This was a significant issue in prior shareholders. Uncertain economic ing and expensive, and because the mulated earnings tax, although the years when capital gains were taxed conditions have led many business- issue of “reasonable needs” is sub- corporation would remain subject at a rate that was lower (and in es to conserve cash over the last jective, it is better to avoid this issue to audit for prior years’ accumula- some cases much lower) than divi- decade. in the first place. tions. dend rates. Beginning in 2013, dividend rates A solid history of paying signifi- Because of the many factors that It seems as though the IRS was increased by almost 60% for some cant dividends can help avoid this go into the analysis, it is important less likely to focus on this issue in taxpayers, from an all-time low of issue. Loans to shareholders should to have a comprehensive plan that more recent years when dividend 15% to the current 20% (23.8% for be very carefully considered (or takes into account (and docu- rates were very low. With the re- those taxpayers subject to the net in- avoided altogether) because they ments) the needs of the business, cent increase in dividend rates, this vestment income tax). may be viewed as a non-taxable sub- from both a working capital and a issue will be coming up more fre- This increase provided an addi- stitute for paying taxable dividends. future needs basis, along with es- quently in audits and should there- Grassi is president of McDonald tional incentive for corporations to Finally, an S corporation election tablishing a dividend paying policy. fore again be an important plan- Hopkins LLC. hold on to cash, because a distribu- will provide complete relief The amount of IRS attention to ning item for corporations. tion of earnings via a dividend is not deductible by the corporation and therefore represents the classic “double tax” scenario to which C corporations are subject. The IRS, however, does not like it when corporations hold onto their cash, and can impose a penalty tax for doing so. Many business owners are sur- prised to learn that the IRS can effec- tively compel them to make nonde- ductible dividend distributions. If a determination is made that the business is accumulating earnings to avoid the tax payable on dividends, the IRS can impose an “accumulated earnings tax” on the corporation, at the same rate imposed on dividend income. This is a penalty and is not reported by the taxpayer; it only comes up on audit when the IRS examiner de- termines that the corporation has accumulated more than a reasonable amount of earnings for the corporation’s business needs. Once the IRS examiner asserts that there is an unreasonable accumulation of earnings, the burden is generally on the taxpayer to show that such accumulation was reasonable given the needs of the business. The tax can be avoided if the corporation can show that the accumulation is not to avoid paying dividends, but to prepare and provide for legitimate business reasons such as the expansion of a facility, acquisition of another business or debt retirement, among other reasons. It is necessary for the business needs to have been in existence at the end of the year under audit; the corporation cannot “create” needs once the audit comes up and assert that these needs were present in the year under audit. It is therefore important to docu- ment these needs each year, ideally in the minutes of the shareholders’ or directors’ meeting. It is much SS&G has joined BDO more convincing to show an examiner minutes of a year-end meeting The people you know at SS&G, one of the Midwest’s top accounting ﬁ rms, have combined their dedicated professionals during which it was resolved to set and staff with BDO. With both local knowledge and expanded resources, we look forward to delivering the same aside funds for the eventual redemp- tion of a significant shareholder (for exceptional client service to entrepreneurial and growing businesses across the Midwest – and all over the world. instance) than it is to convince the examiner during an audit several years later that this was the reason BDO Akron BDO Cleveland BDO Downtown Cleveland for the accumulation. 301 Springside Drive 32125 Solon Road Hanna Building, 1422 Euclid Avenue, Suite 1500 The company is also allowed to re- Akron, OH 44333 Cleveland, OH 44139 Cleveland, OH 44115 tain a sufficient amount of earnings to provide working capital to the 330 668 9696 440 248 8787 216 325 1700 business. Many years ago, the U.S. Tax Court established a formula known Accountants and Consultants www.bdo.com as the Bardahl formula, for deter- mining the amount of working capi- © 2015 BDO USA, LLP. All rights reserved. tal needed for this purpose. This formula takes into account the capital needed for the business by looking at the business operating cycle and the cash needed to operate the business for a taxable year. 20150608-NEWS--20-NAT-CCI-CL_-- 6/4/2015 2:28 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 SUPPLY

continued from page 18 Middle market companies face part of another company’s supply the same supply chain challenges as chain. The company will fly em- larger ones, but they have less lever- ployees out to the customer, even age than a corporation the size of keeping a person on site if need be. Apple Inc., said Mahesh Srinivasan, Relationships are especially im- associate professor and program portant in what DeTomaso calls the coordinator for supply chain at the company’s virtual inventory fulfill- University of Akron. ment, which allows Jakprints to If a smaller company goes to one print products by the order for enti- of its suppliers and asks them to pay Expertise Pays Off ties like Viacom Inc. and Sony Mu- employees fair wages, suppliers sic Entertainment, instead of keep- For more than 80 years, we have helped middle may not have reason to listen, he ing items stocked in a physical said. THYRL[JVTWHUPLZHJOPL]LÄUHUJPHSZ\JJLZZ warehouse. Ultimately, Srinivasan said, the DeTomaso said Jakprints sepa- driving force behind corporate so- -PUHUJPHS[H_0;HUKVYNHUPaH[PVUHSK\LKPSPNLUJL rated the virtual inventory part of its cial responsibility practices is cus- 7\YJOHZLHJJV\U[PUNJVUZ\S[H[PVU business from its legacy business so tomer demands. ;H_Z[Y\J[\YPUN that it could curate its customers Srinivasan has been studying + Risk assessment/risk mitigation and choose those who work as true such practices, looking at factors (\KP[[H_HUKHK]PZVY`ZLY]PJLZ partners. such as whether members of a supply chain are following laws or pay- 3L[V\YRUV^SLKNLL_WLYPLUJLHUKL_WLY[PZLILHU Size matters ing fair wages. And while there are companies HZZL[[V`V\YJVTWHU`»ZVWLYH[PVUZTHUHNLTLU[ Companies with ethical supply that truly care about the issues, HUKZOHYLOVSKLYZ chains are those that not only trust these practices can hurt competi- their suppliers, but also make sure tiveness, he said, driving up prices to verify that everything’s happen- and tightening margins. ing as planned, said Michael Gras- Working to make sure suppliers ka, president and owner of supply are acting ethically isn’t a new con- chain and logistics company cern for companies, but as supply IGSCM Group LLC in Brecksville. chains have become increasingly It’s also important to make sure ex- global, companies have to address Cleveland | 216.363.0100 pectations on price, delivery and new cultural and logistical issues, Canton | 330.966.9400 ethics are clear to suppliers, a ne- said Steve Ash, professor and chair Delaware | 740.362.9031 cessity that may be easier for small- of the department of management Elyria | 440.323.3200 er companies with fewer suppliers. at the University of Akron. Smaller Business Advisors and Certified Public Accountants maloneynovotny.com “As you grow larger, as you ex- companies may have to even rely pand, as you go from small to medi- on intermediaries to manage those um, you sometimes have a harder relationships. time being clear with your expecta- “That distance creates a lot of tions,” Graska said. different barriers,” Ash said.

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

ADVISER GREGORY J. SKODA Are you ready for an acquisition? One of the first questions to ask ternal skill sets and the time you are Do team members have a vol- external team members to make it before pursuing a business acquisi- willing to invest internally to allow ume of experience (not just one or happen. tion is why do you want to acquire a you to make the most of your op- a few times a year) in assisting oth- The best teams have a collection business? portunities. ers in locating, evaluating, negotiat- of experience both internally and You may have a long list of rea- More often than not, most of ing, closing and executing in areas externally, and your team needs a sons, such as: your internal team has “day jobs” such as accounting, tax, legal trans- leader who will see that there is a that absorb most, if not all, of their actions, intellectual property, fi- unified goal and a clearly defined More potential income from uti- time. nance, labor law, insurance and path. Each team member must un- lizing unused capacity more rapidly An acquisition can be a large in- others that may apply? derstand what success looks like. than organic growth might allow; vestment of all of your resources, Growing by way of acquisition Are you ready to assemble your An increase in the depth or qual- from time and money to your can be an exciting, all-consuming teams? Are you ready to build your Gregory J. Skoda is a CPA and chair- ity of existing products or services; brand, and it needs full time atten- time if you allow it to be. playbook? Are you ready to define man of Skoda Minotti, a national CPA, tion. It is important to understand success? Are you ready to activate financial and business advisory firm An expansion in services or prod- Has your external team had the why your organization wants to your plans? ucts to existing customers; with offices in Cleveland, Akron and experience of locating, buying, op- evolve this way and then determine You can change the evolution of Tampa. New customers in volume; erating and evolving businesses? if you have the right internal and your company forever. The addition of significant talent and an increase in the employee base at all levels, including potential management, leadership and maybe even future owners of the business; Geographic expansion, which could help in recruiting and retain- ing employees, or allow you to serve existing or future customers at levels Commercial development is my practice. and in ways you are currently unable to do. That’s a If you think you want to acquire a business for these purposes or have your own list of reasons, one thing is legal for certain: Your business is going to change in a big way. Are you ready? foundation Now that you’ve determined you you can build on. are ready to build your organization by way of acquisition, much like constructing a new building you will need to architect, engineer and design what it is you hope to achieve. I grew up around commercial Begin by evaluating your existing construction in New York City. internal and external team members. You may have valued members But my law practice has that consensus- of your organization who are great in building Midwestern style. their existing roles. I’m the Chair of our Real Estate & If you are about to embark on a path to change your organization, Environmental Practice Group. will each of your key players be able Serving developers and lenders nationwide, to add value in locating, evaluating both new construction and redevelopment. and eventually operating these potential additions to your organiza- We work with landowners, investors, tenants tion? and municipalities. Does your team have experience On everything from land acquisition to zoning. either in growing businesses by ac- And we help raise equity—public and private. quisition or working in larger organizations that will prove beneficial? Today, mixed-use developments are the rage. Will they thrive in organizations with But good-old service never goes out of style. more direct reports and with addi- It’s attention to detail that gets the deal done. tional leaders with different leadership styles? And your project off the ground. It is important to assess what your current and future organization I’m JEFF WILD. charts and roles will look like. I’m on your team. This is just the beginning of laying the foundation on which you will build the next generation of your business. MY BENESCH MY TEAM Does your company have the capacity to absorb new roles, will you need to hire or are you expecting to acquire the people you’ll need to get > Chair, Real Estate & Environmental Practice Group to the next level in each of your busi- > Representing developers, lenders, property owners, ness units? You’ll need to consider investors and tenants. IT, marketing, administration, ac- > Legal Services Include: Commercial Financing, Joint Venture counting and finance, operations, Formation, Single-Asset or Portfolio Acquisitions and sales, production, customer service Dispositions, and Commercial Development. and perhaps others. > 216.363.4544 | [email protected] In addition to your internal team, do you have the right external team in place to help you define, execute and more than achieve your goals? The hard dollars and soft costs you’re about to incur in making your acquisition investments come in many different forms. These costs can vary by as much as five or 10 times depending on your external team and how you uti- lize those resources. It is imperative you have an exter- Cleveland • Columbus • Indianapolis • Philadelphia • Shanghai • White Plains • Wilmington • www.beneschlaw.com nal team that complements your in- 20150608-NEWS--22-NAT-CCI-CL_-- 6/5/2015 2:36 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 Marketing in the information age Many middle market firms place an emphasis on offering up valuable content to attract new customers

By DOUGLAS GUTH gy around their plan. created by the company. ical, as is knowing how they want sion. [email protected] While some midrange compa- One recent post on the West- to consume content,” Mencin However, Tremco has widened nies use social media as an exten- lake-based firm’s OnBase Blog re- said. “Our content puts our culture its digital footprint over the last Modern consumers have shut sion of their brand, there often is layed how technology can in- and personality out there.” decade, expanding beyond its off the traditional world of mar- not enough thought behind how crease student success. Szarka Financial’s ideal clientele website into email, social media, keting, said Joe Pulizzi, founder of that Facebook page or Twitter feed The narrative-style post is told is comprised of folks saving for re- video presentations and a blog. the Cleveland-based Content Mar- will develop an audience. Only through the experience of a Hy- tirement, said marketing director YouTube has been an especially keting Institute. about 30% of middle market lead- land employee who also happens Kelley Drumm. robust content distributor in an They fast-forward through com- ers Pulizzi has interacted with to be the mother of a middle- To reach them, the North Olm- era where easily digestible infor- mercials on their DVR, ignore have a long-term consumer at- schooler, and concludes with a sted company crafts relevant sub- mation is of the utmost impor- magazine ads and use content-fil- traction plan, he said. friendly reminder to email the ject matter across a variety of plat- tance for a burgeoning enterprise. tering extensions such as AdBlock forms, including YouTube and Tremco’s marketing leaders even to prevent advertisements from Internet radio, where Szarka advis- prefer video content over spoken being displayed on their web “We’re creating stories over ads, based on the limited ers cover such topics as Social Se- presentations at trade association browsers. time people have to read content. We’re selling stories curity and how to care for an elder- meetings or other settings where Reaching prospective cus- that drive action in an emotional way.” ly parent. clients and businesses are being tomers through the noise (and “Content marketing is a way of addressed. – Mickey Mencin their annoyance) means commu- reaching clients without selling to corporate communications director, Hyland “Video gets our message across nicating without selling, Pulizzi them,” Drumm said. “It allows us in a more fresh and engaging way,” believes. to deliver info that helps people be said Buckley. “It makes a bigger Companies must deliver consis- Providing a steady stream of writer for more details. more intelligent about financial impact than a dry presentation.” tent, ongoing and valuable infor- quality content, be it in text, audio “We’re creating stories over ads, planning.” Northeast Ohio’s middle market mation that positions them as ex- or video form, should be part of a based on the limited time people firms must continue to find perts in their field, with the end have to read content,” said Mick- middle market firm’s strategy Making an impression unique ways to separate them- goal of attracting the business and whether its intended target is ey Mencin, who leads a team of 25 selves from the pack as the buying loyalty of new buyers. comprised of consumers or other content marketing specialists as Tremco Inc., a supplier of roof- public turns away from the tsuna- The idea of content marketing is businesses, Pulizzi said. director of corporate communica- ing and waterproofing solutions mi of marketing messages, said of special significance to the mid- “A company will publish a blog tions at Hyland. “We’re selling sto- headquartered in Beachwood, has Pulizzi of CMI. dle market, where businesses over a week and expect results,” he ries that drive action in an emo- always marketed content via tradi- “Content marketing is becom- straddling the line between small- said. “These projects are happen- tional way.” tional presentations, case studies ing the de facto term for the indus- er firms and billion-dollar behe- ing in a bubble and aren’t being in- The content push is part of a and white papers, said John Buck- try,” he said. “The hard part is the moths are aiming to reach the next tegrated into the organiztion.” year-old rebranding that put the ley, manager of the business’s strategy, but publishing (content) plateau of success, Pulizzi said. name of Hyland’s flagship product sealants and waterproofing divi- is doable.” “Consumers will ignore you if front and center. you’re not giving them something On the right track Over the last 12 months, the helpful,” he said. “The majority of However, there are some local company has had a 37% increase the buying process is often over businesses getting it right, noted in traffic on its blog, as well as an- for them even before they contact Pulizzi. Hyland Software, for one, other 52% uptick on its LinkedIn Crain’s 2015 program a company.” directs its near daily blog posts at page, which directs visitors to The first objective of middle- specific demographics interested blogs and other social media nomination deadlines: ground content curators should in OnBase, an enterprise content channels. Nominations are now open for all of Crain’s Cleveland Business’ be to create a documented strate- management software product “Knowing your audience is crit- 2015 programs. Deadlines for each of the programs are:

■ Crain’s 52 ■ Who to Watch in Manufacturing Nomination deadline: June 22 Nomination deadline: Aug. 24

■ CFO of the Year Awards ■ Who to Watch in Nomination deadline: July 10 Marketing/Creativity Nomination deadline: Oct. 26 MANAGE YOUR ■ General & In-House Counsel Awards Nomination deadline: Aug. 21 BUSINESS, NOT For more information on how to submit your recommendations for YOUR TECHNOLOGY. each of the programs, go to: www.crainscleveland.com/nominations.

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 Every message has a messenger The willingness to impart knowl- advisers on researching and crafting “Kelley has a good sense of how videotaped advice segments that Drumm, particularly as she watches edge upon a client should be in the a message meant to reach niche au- to build messages and deliver them now appear on television. the firm grow along with her efforts. DNA of any good businessperson, diences. For example, if a planner in an attractive way.” “A (medium) is not necessarily “It feels good to help people get believes Kelley Drumm. has expertise in how retirees can Higher levels of success may re- good or bad,” said Drumm. “Some- to a place where they can have a Information is a particularly valu- create a budget, Drumm will help quire a willingness to change direc- times it’s just a matter of what successful retirement,” she said. able currency in the financial realm, him explore and edit a blog post or tion and move onto something new, works best in the timing of your “Clients should be coming to us where decisions about real-life legal newsletter on the topic. Drumm said. business.” saying, ‘I want to work with that guy tender can impact people for “We’re taking a rifle approach over For example, Szarka ran radio Integrating education into cus- because he knows what he’s talking decades. a shotgun,” she said. “It’s a very fo- ads for three years until switching to tomer outreach is exciting for about.’” — Douglas Guth As marketing director for Szarka cused effort.” Financial, a North Olmsted firm pro- For Szarka, financial wisdom also viding professional services primari- comes in book form. ly for customers nearing retirement, Drumm and five advisers are com- Drumm assists a team of financial pleting a volume on basic financial planners in taking advantage of the planning that will publish in Novem- power of knowledge. ber, adding to a company library Drumm, who joined Szarka in that includes “Money Brain,” a book 2007, oversees all of the family- on behavioral finance written by CEO owned firm’s marketing communica- Les Szarka. tions, PR, advertising, events and “When you share a book with business development. clients instead of a business card, She not only works to keep the you’re sharing knowledge even be- company’s website and social media fore doing business with them,” channels current, she works with the Drumm said. firm’s financial advisers to create in- This kind of storytelling is critical formation-rich podcasts and video for an industry where referrals rev segments for release to the public. the economic engine, said company “It’s about refining our story — president Mike Perry. As reaching telling people who we are and what’s potential clients means cutting our brand message,” said Drumm, a through the noise of half a hundred 20-year industry veteran whose advertising conduits, Perry is happy background includes marketing and to have someone on board who un- Experience the Power sales with Vitamix and American derstands the importance of relay- Greetings. ing engaging content to discerning It’s also about being seen as an clients beyond traditional marketing ® expert in the field, regardless of techniques.”You can have a great of Being Understood more traditional advertising and pro- message, but if nobody’s reading it motion avenues. then you’re wasting your time,” Per- Drumm works directly with firm ry said.

When you trust the advice you’re getting, you know your next move is the right one.

That’s what you can expect from McGladrey: a team that can help middle-market executives navigate the opportunities and challenges they encounter here in Ohio, across the country or around the world.

In other words, anywhere their businesses take them. That’s the power of being understood.

To learn more about how McGladrey can help your organization, call our Cleveland office at216.523.1900 . Or go to www.mcgladrey.com/growingohio.

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 LARGEST PRIVATELY HELD COMPANIES IIAH2&

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25 GROCERS Because we understand your business… continued from page 1 rationale for pushing into the the west end of the center to expand goes so far in keeping stores afloat. region. from an inline store. More organic specialty stores also Meantime, Heinen’s and several local operators stand to also get com- Business are poised to expand. Whole Foods Hungry for more Market is completing construction petition from the expansion of Whole of its first store in the west suburbs in Foods or advent of Fresh Thyme. Part of the buzz over grocers Litigation Rocky River, in addition to stores it Jim Rego, the operator of Rego comes from the lack of energy in already operates in South Euclid and Brothers Lake Road Market in other retail sectors as consumers Employment & Labor Woodmere Village. Rocky River, is skeptical about what stay price-conscious in the wake of In addition, a real estate develop- Whole Foods will bring that’s new the Great Recession. Real Estate & Construction er shows a Lucky’s — a fast-growing to the western suburb. Rich Moore, a Solon-based real organic and natural foods chain — “We’ve got what they’ve got,” estate analyst for RBC Capital Mar- Health & Medicine going into a proposed Cleveland Rego said, noting that he has long kets, said at the recent Internation- shopping center at Clifton Avenue offered organic foods and specialty al Conference of Shopping Centers Trust & Estates and West 117th Street. The Niwot, foods. “We had quinoa for years. trade show in Las Vegas, realty de- Colo.-based grocer declined to con- Now everyone has it.” velopers who have centers with gro- firm the location but said it is inter- He noted there are subtleties to cery stores or such shopping cen- ested in setting up shop in the re- the market, such as being busier ters in the planning phase are gion. during the holiday season and sum- excited about the movement as new Fresh Thyme, which announced mer than the winter months. The grocery concepts hunt space or old its second store in Dayton last year, reason: the high population of snow ones retool. ... you thrive surfaced as a potential tenant when birds who exit ritzy nearby neigh- “As the economy picks up,” Golden Gate Shopping Center co- borhoods for the winter. Moore said, momentum will go owner Hornig Real Estate of New In a sign of how competitive the back to discretionary items. Your business is more than just a job; it is your livelihood, York requested, but did not receive, region is, consider Greensboro, Livingston added, “The grocery your passion, your calling – we get it. We also understand that approval for a sign for Fresh Thyme N.C.-based Earth Fare, which oper- business is always good. If not, you at the heart of every business lies someone who will go to at the property. Daren Hornig, a ates stores in Fairlawn and Fairview just have a bad operator.” principal, declined to comment on Park but shut its Solon store last Rego notes he occupies a seclud- great lengths to protect it. That’s where we step in. whether Fresh Thyme is a prospect year after only a year of operations. ed location near Lake Erie and be- for the center but said his plan for it Conversely, the Trader Joe’s in Eton lieves his clientele is loyal enough to calls for a high-end grocer. Collection in Woodmere Village is return. “We’re ready,” Rego said. Fresh Thyme’s corporate office heading for a freestanding store at “Bring it on.” and ad agencies did not respond to three emails and two phone calls by Crain’s deadline last week. Fresh Thyme also has two stores open in Buckingham, Doolittle & Burroughs, LLC Cincinnati, one that opened last year Akron • Canton • Cleveland and another planned to open this year. bdblaw.com

Rugged competition If Fresh Thyme commits to North- east Ohio, its format the size of Of- ficeMax stores could produce multiple opportunities. Keith Hamulak, a CBRE Group Inc. vice president and retail specialist, said a store of such size could find many more opportunities to set up shop in empty space in existing shopping centers. By con- trast, the 200,000-square-foot Meijer stores require as much ground as a small farm to open a store — and that is scarce in populated Northeast Ohio markets. In such a situation, new entrants must take away market share from existing operators, said David Liv- ingston, managing partner of Mil- waukee-based grocery site consul- tancy DJL LLC. In this case, it’s either Giant Eagle, which dominates the region with multiple stores, or Marc’s. He said Marc’s penchant for low prices makes it less a target than Gi- ant Eagle. HOW BAD IS THAT LEAK? Meijer has long operated in Ohio but eschewed the state’s northeast corner. Giant Eagle had tried entering the Toledo market, where both Meijer and Kroger operate, but shut its two stores there last year. Howev- er, Livingston said Meijer might have a tough time taking on Giant Eagle in Northeast Ohio. “Giant Eagle actually runs pretty good stores,” Livingston said. “It’s not like they are an easy company to compete with. What is the com- pelling reason to shop at Meijer? It does not have anything that Giant Keep your assets safe by taking the time to ensure that problems Eagle does not.” On that basis, Meijer marching on at the top of your building are not damaging your bottom line. Northeast Ohio makes geographic sense — it surrounds Northeast Carey Roofing Corp. has eliminated asset damage due Ohio, with its closest store in San- dusky. However, Livingston said, “It to a leaking roof with practical solutions since 1946. does not make sense strategically.” He believes Warrensville Heights- 216 • 881 • 1999 MEMBER: based Heinen’s Fine Foods will be CAREY clear of the fray as an upscale opera- www.careyroofing.com National Roofing tor. Meijer did not respond to two Roofing Corp. founded in 1946 Contractors Association emails and phone calls about its 20150608-NEWS--26-NAT-CCI-CL_-- 6/5/2015 2:58 PM Page 1

26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JUNE 8 - 14, 2015 IMPORTS DOCKET continued from page 3 sure there are no delays. in Massillon where the pipe is be- and other unions definitely will get continued from page 3 the oil and gas industry — use more The bigger the pipe they need, ing handled, he said, because non- more work from the pipeline, always like which cases were as- U.S. pipe for projects like the Rover the fewer mills there are that pro- union workers from a company in Granado said. signed to the docket. Debt collec- pipeline? duce it, he said. Louisiana are unloading half of it. “We have committed to using tion suits, for example, that Simple, industry representatives At 42 inches, the Rover line is Granado said that’s not a deci- 100% union labor for the construc- “weren’t so needy of time for a say: In an era of massive U.S. one of the biggest. sion that Energy Transfer made. tion of this pipeline,” she said. judge and hands on, which is what pipeline development, there isn’t “You’re going to go to your local Rather, the matter was handled by “We’ve said that from day one and the docket was purported to be,” enough of it to go around. suppliers first, but a lot of these one of its contractors from Texas. that has not changed.” shouldn’t be commercial cases, he “We’ve sourced about 76% of projects have very tight turn- But Bertolone isn’t satisfied with That means members of the op- said. the steel from the U.S.,” said Vicki around times,” Bennett said. that explanation. erators union will be digging 700 “If there is an opportunity to have Granado, spokeswoman for Ener- “With tight turn-around times, miles of trench to put the line in, the docket still here in Cuyahoga once you exhaust your local man- moving pipe into it so that the gy Transfer Partners, the company “We’ve sourced about 76% County,” Russo said, “I want to be building the Rover line. “We got as ufacturers, you have to go else- Pipeliners union can assemble it, able to develop what it looks like close as we could to 100%.” where. … I think that’s what you’re of the steel from the U.S. and filling in and remediating the and have input at that time from the seeing with ET Rover.” site once the line is installed. Granado said her company We got as close as we bar association … on what looks would like to have used exclusive- As for the making of the steel it- good or bad.” self, the steel for Rover already has ly U.S. steel to build the pipeline. Qualified support could to 100%.” Depending on what changes are The reason it’s using foreign been ordered, so there’s little made and how drastically the dock- But the controversy also doesn’t – Vicki Granado chance that U.S. mills will make steel for about a quarter of the pro- spokeswoman, et is altered, the court may or may ject, she said, is not because of end with who makes the steel. Energy Transfer Partners more than the 76% of the line’s not have to get approval from the price, but because U.S. mills that There also are issues over who steel that’s planned for. Ohio Supreme Court before restor- make pipe suitable for the pipeline handles it. In the meantime, Ohio is one ing it. — high quality and large diameter In the case of the Rover line, the “We’ve been to every open state that is taking steps to ensure But Russo emphasized the pipe — could not make it fast steel is being handled by a variety house, every scoping meeting,” that, regardless of whether U.S. Supreme Court is “not driving the enough. of union and non-union workers. Bertolone said. steel is used by the oil and gas in- discussion,” although Chief Justice “We’re looking at more than 700 The dockworkers who take it “We’ve done everything we dustry, people will know exactly Maureen O’Connor has been inter- miles,” she said. from the ships in Cleveland are could to get this thing approved. where the industry’s steel comes ested of what comes of the discus- “To buy that amount of pipe, to unionized, but in Massillon, only Now they say, ‘Well it’s not us.’ … from. sions. find U.S. steel mills that can pro- some of the workers who unload It’s aggravating to do all this “Starting next year, what you’re There’s no strict timeline set to duce it, in the time that we need it steel that comes are union — ground work for them and then get going to see are steel reporting settle the debate, Russo said. Judges … there just wasn’t enough avail- members of Operators Union Lo- the door slammed in our face.” laws in Ohio, so you’ll see where will meet again this month, but able in our timeframe to be able to cal 18, to be specific. The Operators Union continues these companies are getting their those regular meetings go on hiatus use it at 100%.” The Operators Union is glad for to support the project, Bertolone pipe,” OOGA’s Bennett said. for the summer. Such a scenario didn’t surprise the work but is disappointed not to said, but unless it’s guaranteed That might be of particular in- The goal is to revisit the discus- Shawn Bennett, executive vice be getting more of it, said Michael more work, it won’t be sending terest to workers at Ohio’s mills, sions and the next steps formally in president of the Ohio Oil and Gas Bertolone, a trustee for Local 18. him or union members to appear which tend to produce more steel September. Association (OOGA) and one of the That’s especially true since in public on behalf of the project for use by drillers than for large “To be fair, we’re not rushing it,” industry’s chief spokespeople in Bertolone and his union staunchly like it’s done in the past. pipelines. Russo said. “There’s no set timeline. the state. supported the Rover project, testi- The state is following others, in- But I do want to continue to move fying at governmental hearings Pipelines are built on tight Consider the source cluding Pennsylvania, in requiring forward so we’re letting the com- schedules, he said, so they need to and public meetings in support of that oil and gas companies dis- munity, bar association, chief jus- line up all of their materials well in its development, he said. Aside from handling pipe in the close where they buy their steel, tice and my bench know what we’re advance of construction to make Local 18 is picketing the rail yard yard, though, the Operators Union Bennett said. doing.” REAL ESTATE CLASSIFIED

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JUNE 8 - 14, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS They’re all in for a fans are going to work really hard as well to Leiden Cabinet’s talking JUNE 1 - 7 help us raise money and fight hunger in truly meaningful cause Northeast Ohio.” — Timothy Magaw about generational change A battle is unfolding to see whether the Leiden Cabinet Co. of Twinsburg has Cleveland The big story: Cleveland Cavaliers or the Golden State been sold, but employees shouldn’t expect economic development orga- Here’s a fellow with Warriors are the better basketball team, but any big changes. nization Team NEO has a another spirited competition is emerging an impressive career The new owners? The company’s former new CEO — banking veteran between the Rust Belt and the San Francis- Falls Communications executive Keith vice president and CFO, Melissa Hale, and William R. Koehler. Koehler co Bay area. Mabee is entering some rarified air as a NIRI vice president of operations, Mike Hopp. will start June 15. He suc- Nonprofits from Cleveland and the Bay Fellow, the highest industry recognition giv- Hale and Hopp have been “instrumental” ceeds Thomas A. Waltermire, area are squaring off to see whose fans are en by the National Investor Relations Insti- in growing the cabinetry and store fixtures who retired as CEO of Team more generous. For one, the Society of St. tute. maker in recent years, said former president NEO on Dec. 31, 2014. Team Koehler Vincent de Paul Cleveland and the St. Vin- Mabee, the Cleveland firm’s group presi- and CEO Tom Leiden. Leiden, who was a NEO chairman James R. Clay cent de Paul Society of Alameda County are dent of corporate communications and in- third-generation owner, will continue to said Koehler’s “vast leadership experience and going head-to-head to see who can raise the vestor relations, will receive his Fellow work with the company as a consultant. business acumen make him perfectly suited to most cash through their websites to benefit recognition on Tuesday, June 16, in Chica- Hale and Hopp have helped develop the take on this critical leadership role at Team their respective community’s most vulnera- go. NIRI, which launched the program in culture at Leiden Cabinet, Leiden said, and NEO.” Koehler has more than two decades of ex- ble populations. The executive director of 2013, elects no more than five Fellows each discussions about the transition began perience in corporate banking. Most recently, he the organization that raises fewer dollars year. Mabee is one of only 20 executives to about five years ago. led KeyBank’s Community Bank as president. has agreed to wear the opposing team’s jer- receive the honor to date, and he’s the first “I consider them the fourth generation,” He has also held positions with J.P. Morgan & sey and post a congratulatory video on to be named from Northeast Ohio. Leiden said. Co. and Oxford Venture Corp. Facebook. “Keith is the rarest of professionals who is Both Hale and Hopp said they came to Moreover, the Greater Cleveland Food not only superb at his craft but also has the company after years of experience in the The right chemistry: OM Group Inc., a met- Bank has been challenged by Alameda turned being a trusted advisor to C-suite ex- industry and saw opportunity for growth at al-based chemistry firm in Cleveland, agreed to be County Community Food Bank to see which ecutives into a true art form,” said Rob Falls, Leiden Cabinet. And it certainly has grown. acquired by funds managed by affiliates of New organization can raise the most funds. As of In 2004, there were 35 employees, Hopp York-based Apollo Global Management for $34 president and CEO of Falls Communica- Friday morning, June 5, the Alameda food said. per share in cash, in a deal that values the compa- tions, in a statement. “We are thrilled that bank had raised just more than $7,000 and Today, there are 130 to 140. The company at just over $1 billion. In turn, OM Group said NIRI has recognized his many contributions the Cleveland food bank had raised just shy ny has two locations in Twinsburg and one Platform Specialty Products of West Palm Beach, to the field by including him in this elite of $650. Donations, too, can be made on the in Strasburg, Ohio. Fla., will acquire OM’s Electronic Chemicals and group.” organizations’ websites. The leadership transition was announced Photomasks businesses from the Apollo funds for NIRI says its Fellows Recognition Pro- “As LeBron James will tell you, in North- to employees on Tuesday, June 2, Hale said. a total of $365 million in cash. Following the trans- gram honors living organization members east Ohio, everything is earned, nothing is Hopp and Hale now share the title of presi- actions, the Apollo funds will own OM Group’s “who epitomize the leadership, integrity, in- given,” Cleveland food bank president and dent and owner. Terms of the acquisition Magnetic Technologies, Battery Technologies volvement and contributions of investor re- CEO Kristin Warzocha said in a video ac- were not disclosed. and Advanced Organics businesses. lations professionals. These individuals cepting the challenge. “We work hard for have made significant contributions to the Going forward, Hopp said the company is what we have. LeBron accepted the chal- looking to grow modestly and find ways to Interest from California: A private equity betterment of the profession and NIRI lenge and he came home, and our team has operate more efficiently. firm agreed to buy MRI Software — one of the throughout their careers.” worked incredibly hard. You know the Cavs — Rachel Abbey McCafferty biggest software companies in Northeast Ohio. — Scott Suttell GI Partners of San Francisco plans to acquire the Solon-based real estate software company from Vista Equity Partners. MRI has grown a lot under WHAT’S NEW BEST OF THE BLOGS Vista’s watch. The company has added about 130 positions in Northeast Ohio since 2010, when Excerpts from recent blog entries research from the Federal Reserve Bank of Vista bought it from Intuit, a Silicon Valley soft- COMPANY: Post-Up Stand, Maple on CrainsCleveland.com. Cleveland. ware firm. MRI employed 334 people in North- Heights In response to the deep recession and fi- east Ohio as of Jan. 1, making it the second- Quite the groomsman nancial crisis in 2007-09, The Wall Street largest software company in the region, in terms PRODUCT: Line of sidewalk and Journal noted, “the Fed cut short-term in- of local employment. yard signs Cleveland Browns linebacker Karlos terest rates to near zero and undertook three The large- Dansby’s talents extend well beyond the programs of large-scale purchases of mort- Quite some support: The Cleveland Foun- format printing gridiron. gage and Treasury bonds,” known as quan- dation secured a $23 million gift — the third- company, CNNMoney.com profiled Dansby, 34, titative easing. largest in its 101-year history — from the estate which special- and business partner Chris Butler, 35, who “Such measures caused an unprecedent- of Beverly and Al Higley Jr. The gift will become izes in trade “want to corner the market for men’s high- ed increase in the Fed’s balance sheet and part of the Higley Fund at foundation. With this show displays end grooming products and services.” led some to fear that high inflation would financial commitment, the Higley Fund’s assets and promo- From the story: soon follow,” wrote economist Mehmet now hover at more than $35 million, making it tional signage, Together they invested $250,000 and Pasaogullari in the Cleveland Fed’s latest the largest supporting organization at the foun- is going small launched a men’s-only salon — Butler’s Economic Commentary. “Historical data for dation. Supporting organizations are separate with its latest Grooming Club — in their hometown of various measures of expected inflation did nonprofits that operate in conjunction with the product. Birmingham, Ala., in 2009. not provide any support for those fears. In foundation. Post-Up The idea was to create a “man cave where addition, a look at the past six years shows Stand recently guys can get away and be comfortable that these fears have not materialized.” The lease they can do: Westlake-based unveiled a side- among their own,” said Dansby. “They can The central bank’s balance sheet now to- TravelCenters of America LLC signed agree- walk and yard relax, drink, play pool and get a haircut, tals about $4.5 trillion, more than five times ments with Hospitality Properties Trust for sale signs line to augment its outdoor display of- shave, manicure, facial, even get waxed.” its pre-recession levels, according to The leaseback transactions for 30 travel centers total- ferings. The company, founded in 2004, said Today the salon takes walk-in customers Journal. ing about $397 million. Under the agreements, the custom-printed signs enable it to expand and also has 300 members who pay $90 a “Yet U.S. inflation has remained stub- TravelCenters also will buy from Newton, Mass.- its reach to other fields to include political month for grooming packages and unlimit- bornly below the Fed’s 2% target for just based Hospitality Properties five travel centers campaigns and the real estate industry. ed shoe shines. about three years, frustrating officials who now leased by TravelCenters and subleased to The new display stands consist of double- Like a lot of successful entrepreneurs, believed consumer prices would firm up TA franchisees, for about $45 million. TravelCen- sided sidewalk signs, including what it calls Dansby and Butler sought to identify an more as the labor market improves,” the pa- ters’ net proceeds of about $352 million are ex- a “Signicade” design, as well as yard signs opening in the market. When Butler floated per said. pected to produce gains on sales for financial re- with an H-stake frame style. The displays the idea of a men’s grooming salon, “I knew porting purposes of about $137 million. Proceeds can be updated with the purchase of re- he was on to something,” Dansby told Now hear this “are expected to be used to fund TA’s on-going placement signs — a feature catering to in- CNNMoney.com. expansion program,” TravelCenters said. dustries such as restaurants and retail stores Since the opening of the salon, they part- Laura Kepley, artistic director of the that regularly change their promotional nered with Saks Fifth Avenue to open a But- Cleveland Play House, the winner of this OnBase strategy: Hyland Software is about message. ler Grooming inside of the Saks store in year’s regional Tony Award, is a special to receive nearly $900 million in fresh capital. The sidewalk and yard signs use materi- Birmingham. Late last year, they launched guest on the bi-weekly Offscript podcast, a The private equity firm that controls Hyland als including corrugated plastic, aluminum a line of men’s products called Montez discussion led by editors of American The- plans to invest another $715 million into the and PVC. Post-Up Stand said the products Renault. atre. company, and they’re pushing it to take on an- were made possible by the company’s new- “Football is my passion, but so is skin- Here’s how the podcast — quite effective- other $180 million in debt — increasing its debt ly acquired HP Scitex FB700 printer, which care,” Dansby said. “I’m making time for ly — teased the interview: load to record levels. In the process, Hyland tech- “incorporates UV lights and a multiple me- both.” She describes how she reacted when she nically will get a new owner: Thoma Bravo plans dia load into the printing process to provide heard the announcement (hint: it involves a to move the company out of an old fund and into a consistent printed output.” Fear strikes out burrito), the sticky subject of theatrical suc- a new one. That could be a sign that Thoma Bra- For information, visit cession, why Cleveland is the next big arts vo wants to hold onto the Westlake-based com- www.postupstand.com. Remember when some people worried town and where to find a good craft beer in pany — which makes an enterprise content that the Federal Reserve’s bond buys would Cleveland — helpful advice given that our management software product called OnBase — Send information about new products to lead to runaway inflation? TCG (Theatre Communications Group) con- for the foreseeable future. managing editor Scott Suttell at Those fears were “misguided and have ference will be held there in a few weeks. [email protected]. proven incorrect,” according to new How can you not take a listen to that? 20150608-NEWS--28-NAT-CCI-CL_-- 6/5/2015 11:26 AM Page 1

SUMMIT PRESENTED BY AWARDS PRESENTED BY VIDEO SPONSOR

WOMEN OF NOTE SUMMIT & AWARDS COMMUNITY PARTNER

THURSDAY, JULY 23 t".1. CLEVELAND CONVENTION CENTER

This event is not about being “talked at.” It’s about talking together. EVENT EMCEE Join us for the inaugural Women of Note Summit presented by the Cleveland Dee Perry, Foundation– a can’t miss morning of cross-generational learning, sharing experiences, ideastream and creating new ideas through interactive table facilitation and dialogue with women from all over Greater Cleveland. Our unique Ignite conversations will ignite new ways of thinking about the future for women in our community. IGNITE SPEAKERS

1 “Supporting Women in Entrepreneurship” 4 “Giving Back & Engaging with Your Community” Jodi Berg Margot Copeland CEO, Vitamix EVP, Director of Corporate Diversity & Philanthropy, KeyBank

Reka Barabas Ashley Basile Oeken Director, Bad Girl Ventures Executive Director, Engage! Cleveland

2 “Navigating a Male-Dominated Work Environment” 5 “Leadership and the Next Generation” Geri Presti Robyn Minter Smyers EVP, General Counsel, Secretary, Partner-In-Charge, Forest City Enterprises Thompson Hine LLP

Mel McGee Nichelle McCall Founder & CEO, We Can Code It, CEO, Bold Guidance Founder, imageNation

“Can You Have It All? “Equal Say. Equal Rights. Equal Pay.” 3 The Reality of Women in the Working World” 6 Sally Gries Teresa Metcalf Beasley Chairperson & CEO, Gries Financial LLC Partner, Calfee Halter & Griswold

ShelBy Beasley Michelle Park Lazette Freshman, DePaul University Writer, Federal Reserve Bank of Cleveland ShelLynn Beasley Junior, The Laurel School

Following the Summit, join us in the afternoon as we celebrate our 2015 Women of Note honorees at an awards luncheon presented by CBIZ.

Tiered ticket pricing is available for both programs at CrainsCleveland.com/WON *GZPVIBWFRVFTUJPOTSFHBSEJOHQVSDIBTJOHUJDLFUT DPOUBDU,JN)JMMBULFIJMM!DSBJODPNt