20140414-NEWS--1-NAT-CCI-CL_-- 4/11/2014 2:55 PM Page 1

$2.00/APRIL 14 - 20 2014

Cabbies driven to stall Uber, Lyft authority over taxi-cab services. In- Ride services steered by smart phone apps say it’s sour grapes stead, Cleveland — at least at the EDITORIAL: Critics of Uber and Lyft moment — considers them limou- need to pump the brakes. Page 10 By TIMOTHY MAGAW last week, but a handful of local cab trance into the market and the is- sine services, which are regulated [email protected] operators hope the city puts the sues that, at least in their opinion, by the state. year, Keenan said his company brakes on the controversial services. could rear their head. Because of That creates an unfair advantage, spent almost $14,000 in licensing Two popular ride-hailing smart Local cabbies say they’ve warned the way the tech companies are according to Patrick Keenan, gen- fees on his roughly 90 cabs in the phone apps — Uber and Lyft — city officials for more than a year structured, they appear to fall eral manager of Americab Trans- city. launched in the Cleveland market about Uber and Lyft’s likely en- largely outside the city’s regulatory portation Inc. in Cleveland. Last See CABBIES Page 19 HE ISN’T DIFFICULT TO FIND Only now, Hanlin’s popular golf shows will be available across the country By KEVIN KLEPS [email protected]

or golf fans in Northeast Ohio, Jimmy Hanlin is as ubiquitous as Cleveland Browns draft chatter, Chief FWahoo debates or pleas for LeBron James to return home. Soon, Hanlin really will be every- where — or at least in 31 states and more than 50 million homes. Fox Sports Ohio, which purchased SportsTime Ohio from the Cleveland Indians in December 2012, is re- branding Hanlin’s popular “Tee It Up” show as “18 Holes With Jimmy Hanlin.” That program, along with “Swing Clinic,” the 30-minute show on which Hanlin gives golf tips, will be televised this spring and summer on 10 Fox Sports regional networks. JANET CENTURY See HANLIN Page 20 Jimmy Hanlin hosts three shows on SportsTime Ohio, along with a weekly golf program on WKNR-AM, 850.

15 SPECIAL SECTION 7 SMALL BUSINESS

NEWSPAPER Bainbridge Township company grows by changing Entire contents © 2014

74470 83781 focus to food manufacturing ■ Pages 15-18 by Crain Communications Inc. Vol. 35, No. 15 0 PLUS: MENTOR’S INTERNATIONAL REACH ■ TAX TIPS ■ & MORE 20140414-NEWS--2-NAT-CCI-CL_-- 4/11/2014 2:56 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

Upcoming Editorial Feature

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

MANUFACTURING BUILDING FOR SALE OR LEASE Board will advise Crain’s 3,1(&21('5,9( MENTOR, OHIO on minority-based issues

By SCOTT SUTTELL custom injection molder serving the reached out to [email protected] automotive, medical and industrial Campanelli “ex- markets, contacted Crain’s publish- pressing my Crain’s Cleveland Business has er/editorial director John Campan- concern and of- formed a minority advisory board elli in the wake of a Jan. 13 column fering to assist to provide objective, constructive by Campanelli headlined, “Predic- the publication input on minority-based issues — a tion: We’ll do better at diversity.” with closing this historic weakness in Crain’s cover- The column noted that in a fea- gap.” One part age and a recent flashpoint due to ture the previous week asking 32 of Crain’s effort McNair For more the lack of minority representation notable community leaders to to close that gap information contact in a high-profile January feature in make predictions about the econo- is with the launch of the 11-mem- ‡6)ZLWK6)RIÀFH our licensed real ‡%XVVGXFWFRPSUHVVHGDLU estate salesperson: the newspaper. my, health care, education and ber advisory board, comprising Terry Coyne The impetus for the council came more for 2014, none were African- men and women representing the  DQGDLUFRQGLWLRQHG after Darrell L. McNair, president American or Asian-American, and African-American, Indian, Hispan- - 216.453.3001 ‡6LWXDWHGRQDFUHV H[SDQGDEOH [email protected] and CEO of MVP Plastics Inc. of only one was Hispanic. ic and Asian communities. ‡(DV\KLJKZD\DFFHVV Newton Falls, a certified-minority McNair said he immediately See BOARD Page 9

Visit 1350 Euclid Ave, Ste. 300 TerryCoyne.com Cleveland, Ohio 44115 Vorys law firm will move downtown headquarters to 200 Public Square

Attn: Manufacturers & Warehouses By STAN BULLARD Tired of costly electric bills [email protected] After almost 30 years at One Cleveland Center in and a poorly lit facility? downtown Cleveland, the Vorys, Sater, Seymour and Pease LLP law firm plans to move to two floors of 200 Join FirstEnergy & ROI Energy to learn how you Public Square by Nov. 1. Anthony O’Malley, managing partner of the Vorys can get a rebate for upgrading your lighting Cleveland office, said the firm landed at the 45-story building — the one many Clevelanders still think of as • 50% Energy Savings BP Tower — because it wants to reconfigure its office layout to accommodate modern law firm operations • FirstEnergy Rebates and its busy mediation and arbitration practice. “It’s not a lawyer sitting in his or her office anymore,” • Fast Payback O’Malley said. “We want to add collaborative work • Brighter lighting space, reconfigure to suit our practices as they are today and accommodate the special needs of the mediation • Replace HID high bays and arbitration practice for flexible meeting rooms.” The firm also gained room to grow in the future, • Upgrade T-12 fixtures which is important because no additional downtown of- fice buildings are under construction. Although Vorys Independence, Ohio Thurs., May 15, 9-11:30 a.m. obtained future expansion rights for the balance of the Registration limited to first 40 15th floor from building owner Harbor Group of Norfolk, Va., it initially will occupy the 14th floor and half of the $69.00/person 15th floor. The firm has leased 42,000 square feet, about as much space as it occupies at One Cleveland Center, CALL TODAY! Don't miss out! STAN BULLARD 1375 East Ninth St. Register at www.ROI-Energy.com/seminar or call 330-931-3905 The Vorys, Sater, Seymour and Pease LLP law firm soon Adding the Cleveland office of the nationally recog- will occupy two floors at 200 Public Square. nized law firm, which has seven offices in the United States, including in Cincinnati, where it was founded in office by November. The Vocon architecture firm is de- 1909, was important to the building’s owner. signing the new office to take advantage of the windows Jim Vallos, a Harbor Group managing director, said and give the firm a look with a blend of traditional and Vorys is the “ideal type of tenant for the building. They contemporary features so, O’Malley said, “it won’t be were looking for first-class office space. They have a na- stuffy or stodgy.” tional presence and want to attract the best employees. The Vorys space will emphasize flexibility, in part be- Thank you to our generous We have excellent views for them at a building where we cause of the variable nature of its busy mediation and are continuing to improve the package.” arbitration practice led by James McMonagle, a former Mahalo supporters of the 2014 Beech Ball Brian Hurtuk, founding principal of the Cleveland Cuyahoga County Court of Common Pleas judge. Co-chairs Colliers International office, said the building won the The design will include panels that will allow the firm lease because its floor plate matched the law firm’s to create a larger conference room and several smaller Tracy & David Crandall needs. The lease means 200 Public Square now is home ones which allow clients and opposing counsel to meet Colleen & Philip Dawson to about a half-dozen major law firms. privately if they need to do so. At the same time, Mc- Signature Sponsor Supporting Sponsors Underwriters Harbor Group shifted a tenant subleasing part of the Monagle may have multiple cases in arbitration at one th Kathy & Jim Pender and Airport Infiniti Adjer Industries 14 floor to another floor to open up space for Vorys. time and shuttle between them. The Michael Pender BakerHostetler DeGrandis + DeGrandis The shift allows the law firm to use an existing stairwell “Some days we’ll have one conference room and oth- Memorial Fund of the George M. and Pamela S. CPAs between the floors that had been covered up through ers three,” O’Malley said. “One day we may have six and Cleveland Foundation Humphrey Fund Jones Day the years as other tenants downsized and moved with- another day nine. We did not move exclusively for that, Premier Sponsor McGladrey Trend Consulting in the building, Hurtuk said. but will take advantage of the move to add this flexibil- Glenmede RPM International Inc. Services, Inc. Including Vorys, the building with 1.2 million square ity.” feet of office and retail space is 86% leased, Hurtuk said. Harbor Group is continuing to refine designs for up- Elite Sponsors Contributing Sponsors Corporate Tables Altus Capital Inc. & O’Malley said Allegro Realty Advisors LLC of Cleve- dates to the building’s eight-floor atrium that it an- Calfee, Halter & BNY Mellon Wealth land, which represented the firm as a tenant rep, nounced last year, Vallos said. Efforts to add some new Griswold LLP Management St. Clair Advisors, LLC showed it properties throughout downtown before it tenants to empty space on the first floor have slowed Fairmount Minerals Chubb Group of Insurance ForTec Medical Companies Huntington National Bank settled on 200 Public Square. The firm expects to move construction of the atrium updates, he said, but he de- KeyBank ■ Falls Communications Littler Mendelson its 40 attorneys and 20 non-attorney staffers to its new clined to identify the prospects. Donna & Norman Harbert McDonald Hopkins LLC Sandy & Harry Holmes Taft Stettinius & HW&Co. Hollister LLP Volume 35, Number 15 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 Oswald Companies cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for Bringing Hope to Children St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns The Stuelpe Family send correspondence to Audience Development Department, Crain’s and Families Since 1852 Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- Thompson Hine LLP $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- www.beechbrook.org 9911, or email to [email protected], or call 877- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- REPRINT INFORMATION: 800-290-5460 Ext. 136 tions), or fax 313-446-6777. 20140414-NEWS--5-NAT-CCI-CL_-- 4/11/2014 2:58 PM Page 1

APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 INSIGHT OSHA proposal causing a bit of a dustup Administration says silica regulations are outdated, but some businesses disagree

By RACHEL ABBEY McCAFFERTY [email protected]

The U.S. Occupational Safety and Health Administration is looking to update its 43-year-old regulations on how much of a particular type of dangerous dust employees can be exposed to in a traditional workday. But opponents, including some in Ohio, are raising concerns about the cost any changes would add for companies to carry out the proposal and whether there’s even a need for stricter standards at all. OSHA says respirable crystalline silica — created when products like metal-casting molds are grinded or roadways are cut — can lead to lung diseases such as silicosis, lung can- cer and chronic obstructive pul- monary disease. In a fact sheet about the proposal, OSHA says the current regulations are outdated, difficult to understand and inconsistent across industries. The proposal, which first was introduced in August 2013, would lower the allow- able levels of crystalline silica across the board, standardize the calculation and require medical monitoring for employees exposed to high levels. The amount employees are subject- ed to can be mitigated by measures such as increasing ventilation or using water while cutting materials. OSHA estimates the new regulations would prevent 688 deaths and 1,585 silica-re- lated illnesses every year. But not everyone agrees with OSHA’s assertion — or that the cur- rent levels are even problematic.

Clearing the air Russ Murray, executive director of the Columbus-based Ohio Cast Met- als Association, said his industry has spent “tens of millions of dollars clean- ing up foundries” since the 1960s. See DUSTUP Page 22 REBECCA R. MARKOVITZ Developing an ideal exit plan chitecture at the University of Michi- Volpe transitions ownership of Cleveland gan. The youngest is Alex Pesta, 36, who joined City Architecture after Architecture to three longtime colleagues working there as a co-op student while getting his architecture degree By STAN BULLARD continue.” at the University of Cincinnati. [email protected] The new owners “I (interned) at four firms. After the are longtime asso- summer here, I knew this was the one Paul Volpe is 62, in good health and ciates that Volpe I wanted to join,” Pesta said. “That looking forward to continuing to work wants to see con- was due to the energy at this firm and for years as a planner and architect. tinue City Archi- its blend of residential and commer- However, he has just completed a tecture and its cial work.” CONTRIBUTED PHOTO transition in the ownership of his City work. Although all four men said they all City Architecture renovated the Park Lane Villa apartments in Architecture firm that most members “I didn’t look for Volpe pitch in when something requires all Cleveland. To view a photo gallery of some of the firm’s best of his profession leave to fate. a buyer of the busi- hands on deck, they have different work, go to www.crainscleveland.com/cityarchitecture. He has transferred shares of the 20- ness,” he said. “I want these people to skills. person Midtown Cleveland architec- own this business, and I want to re- “It’s one big studio,” Pesta said. ture firm to three long-term associates main a part of it.” Fluker handles construction docu- who now run the show. The oldest of the new principals is ments, assigning staff and meeting CORRECTION “They’re the age I was when I start- August Fluker, 50, who joined City Ar- deadlines. Wagner is the most focused ed this firm 25 years ago,” Volpe said. chitecture 19 years ago after working on building issues as an architectural ■ An April 7 CIO of the Year finalist profile of Rob Sable misstated the “It’s their time to be doing this. When for other firms in town. John Wagner, designer. Pesta works on planning and amount of money Sable saved Alliance Solutions Group in a year. He the time comes for me to leave — and 40, joined the firm a dozen years ago residential design. saved the company more than $100,000 in the year. it’s not anytime soon — this firm will fresh from a master’s program in ar- See PLAN Page 21 20140414-NEWS--6-NAT-CCI-CL_-- 4/11/2014 2:59 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014 McIntyre is new editor of Crain’s 8687 TYLER BLVD., MENTOR By JAY MILLER who are extraordinary journalists, Green State University, spent 20 Available for Sale or Lease [email protected] and to partner with John Campan- years at The Plain Dealer, starting as elli, who I greatly admire as a jour- a copy editor in 1990. Over the next Elizabeth McIntyre is the new ed- nalist and a person.” two decades, she took on added re- itor of Crain’s Cleveland Business. Campanelli and McIntyre sponsibilities in the newsroom. She replaces Mark Dodosh, who worked together at The Plain Deal- She served as graphics and de- joined Crain’s as managing editor er for more than a decade. sign editor and assistant managing in June 1985 and was named editor Campanelli said he and McIntyre editor before being named deputy in October 1988. will be reshaping Crain’s into a 24- managing editor in 2007. In that “Anyone who hour-a-day operation and “a brand role, she directed the news opera- has worked along- that will provide information and tions of the Metro, Business, Sports side Elizabeth news over all media.” and Features departments. knows she is a For McIntyre, it’s a return to a pro- She left The Plain Dealer in No- fountain of ideas, fession that represents “the way I di- vember 2010 and joined the Cleve- a brilliant editor rected myself from second grade on.” land Foundation as public relations and a leader who “It was a once-in-a-lifetime op- officer, overseeing the foundation’s inspires a staff like portunity to get back into journal- website, advertising and donor McIntyre • 49,240 Total SF • 22’ Ceiling Height no one I know,” ism,” she said. “The very thought of communications programs before • 44,440 SF Warehouse • Wet Sprinklered said John Campanelli, Crain’s pub- being back in a news operation and joining the college stores associa- • 2.73 Acres • 480/3 Phase Power lisher and editorial director. newsroom again is where I belong; tion in 2013. • 1 Truck Door • Fully Air Conditioned McIntyre, who starts today, April it’s where my heart is.” McIntyre started her career in • 4 Drive-In Doors • 3 - 5 Ton Cranes 14, had been vice president of com- Campanelli praised Dodosh and journalism as a copy editor at The munications and public relations at the key role he played in making Morning Journal in Lorain. seventy-fifth 75 anniversary Gregory B. West | Christopher J. Hondlik, SIOR the National Association of College Crain’s what he said was the leader A Youngstown native, McIntyre 216.861.7200 | www.ostendorf-morris.com Stores in Oberlin. She said she is in business and economic news in is married to Plain Dealer colum- global commercial real estate services looking forward to returning to a Northeast Ohio. nist Mike McIntyre, who also hosts newsroom. “Soon after Crain’s started and “The Sound of Ideas” on 90.3 “I finally realized that I still have until today, the reason Crain’s has WCPN. The McIntyres met at The ink running through my veins,” she been a success is due in large part Morning Journal and married in said in a telephone interview. to Mark’s leadership, journalism 1991 after both had moved to The “When this opportunity presented talent and skills,” Campanelli said. Plain Dealer. They live in Rocky itself, it was such a fabulous oppor- “We owe him a lot.” River with their son, Aidan, age 16, tunity to work with a staff at Crain’s, McIntyre, a graduate of Bowling and daughter, Maura, age 13. ■ Crain’s like you’ve never seen it. NEW! Selman expands via acquisitions IN CRAIN’S By MICHELLE PARK LAZETTE it union and bank clients and grow- competitors,” he [email protected] ing its insurance premium under said. administration by nearly one-third.

THIS “The cost of WEEK WEBCAST Through a pair of acquisitions this Effective April 1, Selman & Co. technology and month, a Mayfield Heights-based closed acquisitions of the business compliance are REGISTER TODAY marketer and administrator of life and assets of Association & Society increasing in the at CrainsCleveland.com/Email and health insurance products is Insurance Corp., or ASI, out of insurance busi- breaking into serving military re- Rockville, Md., and of the life and ness,” he added. tirees, expanding its number of cred- accident insurance administration “So it’s more and Selman business of MAI Services Corp. in more difficult for Cuyahoga Falls. smaller businesses to make those in- Terms of the deals were not dis- vestments. We think that Selman has closed. been particularly well positioned by Selman & Co. issues policies, bills being large enough to act like a big and collects premiums, and performs company and small enough that ANATURALSETTINGFORSUCCESS customer service between insurance we’re not very bureaucratic.” companies such as Aetna or Hartford As for ASI, which basically sells and members of associations, cus- one product designed for retired tomers of financial institutions and military, joining Selman & Co. af- employees through employers. fords it more diversification, said The ASI deal nearly doubled Sel- Edward Singer, executive vice pres- man & Co.’s staff to 150 from 85. ident for ASI. Both acquisitions increased its in- “There is a tremendous opportu- surance premium under adminis- nity in being a niche, (but) there’s tration by nearly 30% to $155 mil- also a lot of downside to it,” he said. lion from $120 million. “If anything happens, you don’t Through its deal for ASI, also a have anything besides what you’re third-party administrator of insur- doing, so I think joining a company 22,000SqFtofMeetingSpace.OneExceptionalLocation. ance plans, Selman & Co. adds a that is much more diversified is a Washington, D.C.-area office and very good thing.” also can leverage the reputation and Via its other deal for a piece of the  Training,meetings&specialevents “well-established presence” ASI has business of MAI Services, Selman & in serving retired veterans and the Co. becomes the administrator for  271-roomWilsonLodgefeaturing59premiumrooms&The eligible dependents of veterans who roughly 60 credit union and 100 WestSpa are disabled or who died in the line bank clients with which it does not of duty, said David Selman, presi- already work, improving its position  Creativecuisineservedinbanquetroomsorcatered dent and CEO. in that market it serves, Selman throughouttheresort “They’re the largest player in the said. He estimated Selman & Co. niche,” he said. “(We) hope to learn works with 800 credit unions na-  Versatilemeetingspacetoaccommodateupto400 from them and make our business tionwide and said it also works with stronger. We’ve never operated two large banks, including KeyBank.  Legendarycustomerserviceandpersonalattention offices before, so this is exciting.” MAI continues to do business as All of ASI’s 65 employees have a broker of property and casualty  1,700acresofyear-roundrecreation been hired, according to Selman, Resort & Conference Center and life and health insurance pro- whose father bought a business and grams for credit unions and com- Wheeling, West Virginia renamed it Selman & Co. in 1980. munity banks and their members Call 800-972-1991 or email Selman said he casually ap- and customers. Selman & Co. now [email protected] proached the leaders of ASI about a will perform the back-room insur- potential deal roughly a year ago. ance administration MAI’s people “I felt that they occupied a space have done historically, Selman said. www.oglebay-resort.com similar to Selman in that they were The ASI and MAI transactions large enough to operate very profes- bring to 10 the number of acquisi- sionally and small enough to have tions Selman & Co. has closed in its An easy 3 hour drive from Cleveland! the flexibility, the ability, to be nim- 34-year history, Selman said. They ble and compete with much larger were its first since 2011. ■ 20140414-NEWS--7-NAT-CCI-CL_-- 4/10/2014 2:03 PM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014 Team NEO: Biomed sector’s hot, but job growth lags

By JAY MILLER by Team Northeast Ohio, the region- the Milken Institute in Santa Mon- this particular review highlights the Bo Carlsson, an economic pro- [email protected] al business attraction nonprofit. ica, Calif., where he focuses on job biomedical industry and says that fessor at Case Western Reserve If the region can grow employ- creation, health and access to cap- 700 biomedical companies in University, agrees with Team The biomedical industry has ment in the biomedical sector, ital access. Northeast Ohio now employ 33,000 NEO’s assessment of industry been the fastest-growing sector of most likely by improving produc- “A real competitive advantage of people — about the same number growth without jobs in recent the Northeast Ohio economy in the tion processes for medical devices Northeast Ohio is, given the exper- that were employed in the industry years. But he, too, believes that job 21st century, with the value of in ways that reduce the cost of tise in refining production process- in 2000, when the region had only growth will come. He sees young goods and services produced by manufacturing, at least one re- es and improving efficiencies, if 300 biomedical companies. medical device companies, which businesses in the sector growing by searcher believes that could create you can find a way to bring costs Jacob Duritsky, Team NEO’s may not yet have regulatory ap- 59%, and experts and observers be- a new wave of high-paying manu- down (on making medical de- managing director of research, said proval for the sale of their new de- lieve it has more room to grow. facturing jobs for Northeast Ohio vices),you’re talking about creating that lack of job growth is a result of vices, getting that approval and hir- The only thing holding back enthu- by keeping production work local. high-quality, middle-class jobs,” the increasing productivity in all ar- ing as they start production. siasm, however, is that so far the “The United States hasn’t reaped DeVol said. “Northeast Ohio has a eas of manufacturing, including the “We may see a different picture growth has come without any growth the benefits it should because so real opportunity there.” medical device sub-sector, which is going forward because there are so in biomedical jobs, according to the much of the production (of medical Team NEO’s quarterly economic a key part of the region’s biomed- many new applications coming for- most recent report on the regional devices) has moved offshore,” said review reports on basics such as job ical industry. ward,” he said. economy released Sunday, April 13, Ross DeVol, chief research officer at creation and unemployment, but That can change, though. See JOBS Page 19 Gas Natural makes adjustments accountants — enhancements to its In filing, company says there were differences talent “to provide timely, accurate, and transparent reporting to the with PUCO ‘in interpretation and understanding’ PUCO,” Osborne wrote in an email. By MICHELLE PARK LAZETTE Crain’s last week. And, in another move to ensure a [email protected] The most significant change Gas transparent relationship between Natural made, according to Os- its utilities and the PUCO, Gas Nat- Do you know your lender? In the months since the Public borne, was the halting of gas pur- ural retained Cox Consulting Group Cooperative Business Services and Community First Credit Utilities Commission of Ohio or- chases by its utilities through its af- LLC to provide it training on stan- dard regulatory filings and advice Union offer you dered an investigative audit of two filiated marketing company. ORFDOÀQDQFLQJ\RXFDQWUXVW subsidiaries of Gas Natural Inc. and “Inflated” fees paid to an affiliate for regulatory matters. “Some of the requirements in the Aggressive Financing up to $10,000,000! all affiliates, the Mentor-based com- company for natural gas purchases Jonathan Mokri ‡ were one concern raised in the Nov. PUCO order represented differ- Commercial Real Estate Financing pany has made changes to its proce- ‡ dures and internal controls, retained 13 opinion and order of the PUCO ences in interpretation and under- (Owner Occupied or Investment) 440.526.8700 a firm to consult it on regulatory involving two Gas Natural affiliates: standing between our utilities and [email protected] ‡ 3XUFKDVHRU5HÀQDQFHPDFKLQHU\ matters, made four hires to improve Northeast Ohio Natural Gas Corp. PUCO,” Osborne wrote. “We have equipment or other capital assets its reporting and underwent PUCO and Orwell Natural Gas Co., both lo- since made changes to our proce- www.cbscuso.com ‡ SBA 7(a) and SBA 504 loans (10% down) training. cal distribution companies that dures and internal controls to be in So said the company in its annual serve portions of Ohio. compliance with the PUCO order. report with the Securities and Ex- The PUCO regulates investor- “Gas Natural Inc. recognizes that change Commission, and Gregory owned utilities in the state. Its order growth does not consist solely of Osborne, who became Gas Natural’s several months ago followed what it adding customers and putting pipe president and chief operating officer termed an “unprecedented” recom- in the ground,” he added. “We Providing Commercial Loan Financing in Partnership with Area Credit Unions SM in November, in an interview with mendation by commission staff to need to be cognizant of our growing conduct an investigation of North- responsibilities to our regulatory east, Orwell and all affiliates, and agencies, financial partners, in- cited concerns about the compa- vestors, and, most importantly, our nies’ internal controls, the propriety customers. To achieve that balance, of their executive compensation we are enhancing our internal ac- system and alleged self-dealing by counting systems, strengthening management, which includes our control environment, and in- members of the well-known Os- creasing transparency with new We are pleased to welcome borne family of Mentor. leadership and a new culture that is Instead of purchasing through its transforming our delivery and re- affiliate, Osborne said “our utilities porting systems.” Lisa H. Michel, CTFA are now purchasing gas directly” from producers and gas marketing Competence examined Vice President, Wealth Advisor companies. That bypasses “possible related In related news, on April 2, the party mark-ups and fees on this Public Utilities Commission of Ohio gas,” according to the company’s issued a request for proposal to find 25825 Science Park Drive, Suite 110 filing in late March. Gas Natural also an auditor to conduct the investiga- Beachwood, OH 44122-7315 has adopted procedures that ensure tion of Northeast, Orwell and relat- 216.514.7862 that local production gas purchased ed companies. by its utilities must come from “un- The third-party auditor is to ex- [email protected] related, third-party pipelines at amine the corporate separation be- competitive prices and without tween the companies and affiliates, commission.” their systems for compensating Other steps prompted by the reg- their employees, the reporting of ulator’s order include Gas Natural’s transactions between them, their Glenmede is an independent investment and wealth management hiring of a new corporate controller, management structure and their in- firm founded with a mission to protect and grow client assets. Today, a new controller at the company’s ternal controls. with $25 billion in assets under management, we guide individuals, Ohio utilities and two new general See ADJUSTMENTS Page 21 families, endowments and foundations with consistently thoughtful advice and sophisticated investment management. Prime Location in Medina FOR SALE 6T)W‡4992 Foote Rd. OR LEASE

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APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Board: McNair hopes to help publication become more ‘inclusive’

continued from PAGE 4 The advisory board’s goal, Mc- Nair said, “will be to enlighten Crain’s on the contribution that mi- nority and women-owned busi- nesses deliver to Northeast Ohio.” He said the board “will look to en- gage with Crain’s on exposing the opportunities and challenges that Rucker Adams Cartagena Gautam Houser Kamat Maldonado Martinez-Giering Obi confront these businesses, thus po- sitioning Crain’s as a catalyst for Presidents’ Council Foundation. torial company serving medical ing Crain’s identify trends, people fostering an environment that is re- ■ Michael J. Houser, an education buildings, manufacturing facilities, and businesses in Northeast Ohio’s ceptive to inclusive activities in specialist with the Boys and Girls schools, retailers, financial institu- minority community that deserve Northeast Ohio.” Club of Greater Cleveland and a for- tions, restaurants, churches, gov- coverage, McNair said. Campanelli McNair is the immediate past mer campaign staffer for U.S. Sen. ernment agencies and more. said the board will help Crain’s re- chair of The Presidents’ Council, the Sherrod Brown. ■ Margaret Wong, founder of Mar- porters and editors do a better job largest African-American economic ■ Pradip Kamat, who founded In- garet W. Wong & Associates Co. of networking in the minority com- development organization in Cleve- dus International Inc. in 1992 to LPA, a firm nationally and interna- munity. land. Under his leadership, the or- help clients with business develop- tionally known for its expertise in McNair, a subscriber to Crain’s Vaughan Jr. Wong ganization helped secure equitable ment in India. He formerly held ex- immigration and nationality law. and two other Crain Communica- inclusion for minority businesses tions Inc. publications, said flatly ity-owned businesses and church- for projects including the Horse- ecutive positions with Swagelok Co., Keithley Instruments Inc. and that Crain’s Cleveland Business “is es in minority communities shoe Casino Cleveland, the Cleve- The cringe factor not a regularly read publication in Allen-Bradley. throughout Northeast Ohio. land Convention Center and vari- Campanelli said a look through the minority community due to the Campanelli said a more compre- ■ Adrian Maldonado, owner of ous expansions at University the pages of Crain’s reveals that lack of articles that appeal to that hensive approach to covering the Adrian Maldonado & Associates, an Hospitals. “the proportion of faces you see audience.” The publication, he region will improve the “quality, In addition to McNair, the MBE firm specializing in various doesn’t match the region or the said, “has taken a more traditional, scope and depth” of Crain’s weekly board’s members are as follows: fields of construction and construc- business community” in its racial corporate view” of economic life in print issue and its website. ■ Montrie Rucker Adams, president tion management. makeup. For instance, the lack of Northeast Ohio, and the board aims “Any business person of any back- and “chief visibility officer” of Visi- ■ Kimberly Martinez-Giering, a vet- racial diversity in the Jan. 6 predic- to advance the idea that “there’s ground should be able to look to bility Marketing Inc., a public rela- eran of the transportation industry tions section “was noted immedi- more to it than that.” Crain’s as their publication for busi- tions firm. who is president and owner of KLN ately, and (many readers) cringed.” About 2,500 additional copies of ness,” he said, adding that Crain’s ■ Luis Cartagena, business advis- Logistics Corp. (dba AIT World- The advisory board is a step to- this April 14 issue of Crain’s will be should be “a trusted source of infor- er/strategic planning for the MBDA wide) in Middleburg Heights. She ward addressing that issue by help- distributed, at no charge, to minor- mation, and a mirror, too.” ■ Business Center-Cleveland, which formed the company in 2005. assists minority-owned businesses ■ Michael Obi, chairman and CEO in gaining access to development of Spectrum Global Solutions, which opportunities, capital and financial helps companies improve perfor- management. mance and grow their revenue ■ Samir D. Gautam, a JPMorgan through operational excellence. banker who is a trustee and chair of ■ James Vaughan Jr., president and the Development Committee at The CEO of JDD Inc., a full-service jani- NOMINATIONS NOW OPEN Independence Square Presented by: is sold for $4.9 million

By STAN BULLARD [email protected] Achievements in ON THE WEB Story from: Human Resources www.crainscleveland.com The sale of Independence Square Shopping Center, a neighborhood shopping center in the middle of In- Do you know someone who epitomizes what it means to be a beneath Mr. Coffee’s onetime dependence, marks the end of an- factory. other chapter in Northeast Ohio leader in NE Ohio’s human resources community? The elder Marotta is 90 and in real estate. When Solon-based Carnegie Cos. good health, Charles Marotta said. Nomination categories include: paid $4.9 million on April 1 for the The property also has expansion potential because of its location, 64,000-square-foot center, the sell- *New Category* er was Pepper Pike-based Marotta said Terry Coyne, executive manag- Corp, according to Cuyahoga Coun- ing director of Newmark Grubb - HR Executive of the Year - - Leadership in Diversity - ty land records. Before Vincent Knight Frank, who handled the sale Marotta and his business partner, with Newmark Grubb colleague the late Sam Glazer, became known David Hollister, a managing direc- as the developers of the Mr. Coffee tor. - Rising Star - - Lifetime Achievement - - Innovation - automatic drip coffee maker, they Coyne and Charles Marotta both built homes and shopping centers, said they had multiple bidders for among them Independence Square the property. Coyne noted there is in 1961. potential upside because the 80% TO NOMINATE VISIT Charles Marotta, the son of Vin- occupied shopping center at 6511 cent Marotta and a principal of the Brecksville Road is next to a 16-acre firm now known as Marotta Corp., parcel with a closed middle school CrainsCleveland.com/Archer said, “It’s really the last commercial on it that the city of Independence building the family owned. This has owns and hopes to see developed. been a great building for us, but it Independence Mayor Gregory Deadline: May 16 was time to turn the page. Other Kurtz said in an email that Carnegie than that, we still have land for sale has told the city that it is still devel- Premier Sponsor: Co-Presented by: Community Partner: Video Sponsor: on Miles Road in Bedford Heights.” oping its plans for the just-acquired Charles Marotta said his father property. The city has discussed the used the same crews to build Inde- middle school property with pendence Square that he used to Carnegie, Kurtz said. build other centers sold earlier For its part, Carnegie is evaluat- through the years, such as Village In Partnership with: ing its next steps at the property. Display Sponsor: Square Shopping Center in Beach- Paul Pesses, Carnegie president, wood, Richmond Square Mall in said in an email, “We are reviewing Richmond Heights and Great Lakes a number of options related to this Mall in Mentor. acquisition, but haven’t solidified The 36 acres that Marotta has for anything in particular at this sale in Bedford Heights was the land time.” ■ 20140414-NEWS--10-NAT-CCI-CL_-- 4/11/2014 9:43 AM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

PUBLISHER/EDITORIAL DIRECTOR: John Campanelli ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Need a lift? ber and Lyft, ride-sharing services we’ve heard about from the cool kids for months, finally pulled into Cleveland last U week. If their arrival here is like their entrances in other cities, they will have some folks trailing right behind, tailgating at an unsafe distance: city governments and an establishment unwilling to embrace a new sharing economy. Hours after Uber and Lyft announced their arrivals here, news broke that the city of Columbus had sued Uber, which launched in the state capital FROM THE PUBLISHER in February. The lawsuit claims the service is essen- tially an unlicensed jitney operation that’s putting public safety as risk because the city hasn’t inspect- ed Uber cars or licensed Uber drivers. (Uber and Startups can be strong right here Lyft do not own cars. Drivers use their own vehicles and work the hours they want, with the companies’ ly-over country, my JOHN $1.1 billion. this all the time — stop being our own mobile apps merely matching people who need patootie. CAMPANELLI Startups hatched and worst enemies. No more excuses and di- rides with drivers’ empty seats.) The fools on the based in our bucolic region of- minishing our area. ten have to pack the wagon Also crucial: We in the Midwest need The ride-sharing ventures are facing legal coasts, with their F$5,000-a-month mortgages, and go west or east to get the to revisit our mindset of “failure.” We challenges in a number of cities as established taxi three-hour traffic jams and cash they need to grow and view it as shame, ignominy, an “F” on companies see their territory invaded by (often) 11% state income taxes, are thrive. It’s a terrible cycle that the report card. In Cali, it’s different. cheaper, cleaner and cooler alternatives, and as law- beginning to wise up. pushes tomorrow’s employers Kvamme, who moved to Columbus from makers see their taxes and license fees threatened. Last week I had the honor of — and a staggering amount of Silicon Valley, spoke eloquently about potential jobs — away from how entrepreneurs out west wear their Like the parent of a 16-year-old, it’s as if the moderating a panel of venture capitalists at JumpStart’s An- the places that need them the failed ventures and dead businesses as establishment is pressing on an imaginary brake nual Northeast Ohio Entrepre- most. badges of honor. while riding shotgun, trying to stop a newbie from neur Expo. On stage were Jay Katarincic, But that was the story. Things are “You tried something,” he said. “You driving — and growing up — too fast. managing director of Draper Triangle changing. The great minds and deep went for it. … The first company I start- Problem is, the companies cannot be stopped. We Ventures; John McIlwraith, managing di- pockets on the panel are based in Ohio ed was an unmitigated disaster, but if are experiencing a sharing economy revolution. rector of Allos Ventures; Ray Leach, CEO and Pennsylvania, and their funds are you don’t take any risks, you don’t get dedicated to Midwestern startups. They any reward. Airbnb, a service that lets people rent their empty of JumpStart; and Mark Kvamme, co- founder of Drive Capital. Together, they realize that there are sensational oppor- “People in Silicon Valley in particular rooms, booked 6 million guests in 2013. TaskRabbit represent more than $1 billion in capital. tunities and ideas here. (The expo at- really focus more on growth, but with lets folks outsource household chores. (I had $11 in my wallet … and a validat- tracted more than 110 hungry local en- more growth comes more risk,” he StoreAtMyHouse allows people to rent their ed parking pass.) trepreneurs and more than 900 people in added. “You learn a lot more on the way basement or unused parking spot. DogVacay lets The topic was “Attracting Capital Be- total.) The cost of real estate, talent, busi- down than the way up. All the success I anyone become a dog sitter. There are scores of tween the Coasts.” ness services — all cheaper in the Mid- had after my company crashed was be- The sad reality is despite our great west. With the cloud ending the need for cause of the things I learned with my first examples, with more debuting all the time. ideas, hardy work ethic and Midwestern vast tech infrastructure, startups can failure.” This wave is empowering individuals, creating “mensch-iness,” venture capital contin- now be based anywhere. Why not here? Kvamme’s second company went jobs, boosting competition and lowering prices — ues to be funneled toward the coasts. Sil- But while we wait for the investors’ public. the fruits of open markets. icon Valley companies got more than cash to make the smart move and arrive, So unless your business is skydiving, In many ways, this new economy is like sprouting $11 billion in VC funding in 2013. Com- we need to change our thinking, too. failure is indeed an option. It also might First, the panel suggested — and we hear be a rite of passage. ■ grass. We see real potential for a sprawling lawn — panies located in the entire Midwest? lush and thick. So instead of stomping on or cutting the seedlings in a quest to tax and control, cities TALK ON THE WEB need to fight the urge to intervene. They must allow companies like Uber and Lyft to grow. In fact, we’d Re: Cleveland cleanup Reader responses to stories like to see local lawmakers embrace the likes of POLL POSITIONS needed for GOP in 2016 and blogs that appeared on: Uber and Lyft and work with them. ■ Before we get a big convention, are we www.crainscleveland.com What do you think Cleveland's One of the many beautiful things about these new ready? chances are for hosting the 2016 startups is that, unlike the jitney operations of old, The city is a dump, and it needs a good Re: Underwhelming Republican National Convention? they rely on online reviews and feedback to get cleaning! Take a ride from the airport on Strong customers. Drivers already are screened and the train to Tower City and then look at gambling returns insured, and their vehicles inspected. These days, the trash and dumpy buildings! ■ Gaming is a trash industry and every- 26.1% the companies cannot afford to do otherwise. Why doesn’t RTA use the Muni Lot as body but casino advocates knew it. a hub? Park there for $5 and take differ- Business groups like the Greater We’re not saying these ventures should remain ent buses to different venues, like a par- Cleveland Partnership that supported Fair stealthy forever. Once they are established, they ty bus to the Flats, or a wrapped bus for the statewide enabling ballot issue 40.9% must contribute to infrastructure and public PlayhouseSquare. should have known better. Independent services with taxes or, perhaps, a new licensing Plant lots of flowers along the bus studies by universities showed that gam- system that doesn’t cripple competition. routes. Check if the hotels are clean and ing has little long-term positive econom- Weak Finding a taxi in Cleveland, often a tricky the staff knowledgeable about Cleve- ic impact. — 174745 land. 33.0% endeavor, got easier last week. As the sharing We have great minds in Cleveland, ■ States should realize that the house al- economy grows and creates jobs, let’s have the and they are sitting idle! Everybody has ways wins. If they wanted bigger rev- vision and patience to not get left at the curb. to work together and not let greed in the enues they should have written clauses Vote in the poll each week at: way! — David Jesse See WEB Page 11 CrainsCleveland.com 20140414-NEWS--11-NAT-CCI-CL_-- 4/10/2014 2:04 PM Page 1

APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11

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CONTRIBUTED PHOTO MetroHealth CEO Akram Boutros says the hospital system needs to “work diligently to reduce and even eliminate the operational support from taxpayers.” Web: Horseshoe needs more winners continued from PAGE 10 the moniker “taxpayer subsidized” facilities. Operating these institu- into the contracts that the casinos does not tell the whole story. tions became totally outside the make bigger payouts and give bet- Crain’s health care reporter Tim- ability of counties to support them. ter odds to gamblers. Then it would othy Magaw is correct to report that I support the role of MetroHealth be a win-win for everyone — the MetroHealth’s finances are on sta- since it is the Level One Trauma NOMINATE TODAY casinos, the state and the gamblers. ble ground. However, did you know Center for Northeast Ohio and is — EscapedLorain that if MetroHealth had the same the health institute of “last resort” percentage of patients with com- for the uninsured. However, the ■ The Horseshoe and Caesar’s can- mercial insurance as the other ma- new health care law might impact CrainsCleveland.com/40u40 not expect the public to continue to jor academic medical centers in the that greatly. come back with no hope of win- region do, the annual operating in- The real question is where the ning, let alone breaking even. $10 come would reach $100 million? Or money will come from for a $400 free slot play and free buffets (with that if MetroHealth weren’t here, million to $500 million facilities two-hour wait times) just doesn’t the cost of healthcare in the region project. We need to get a task force cut it. Sorry. — 171783 would increase? to look at MetroHealth’s role in the These are just some of the rea- future of health care and how is it Re: MetroHealth’s sons that many feel that the term paid for. — Neil Dick county support “taxpayer subsidized” does not do justice to what MetroHealth does Re: Tressel’s chances Outdated lighting is ■ The taxpayers’ support of Metro- for or what it means to the region. for Akron presidency Health is not in question. We ap- — Akram Boutros (Boutros is pres- costing you a fortune. preciate and value every dollar we ident and CEO at The MetroHealth ■ What does “show cause” even receive. As a matter of fact, I firmly System.) mean? It’s kind of nonsensical, believe that as good stewards we when you think about it. need to work diligently to reduce ■ Over the last couple of decades, University of Akron: we have and even eliminate the operational counties all over the United States cause to hire him support from taxpayers. However, have sold off county owned medical NCAA: OK, go ahead. — rayy Smart Change. Simple Payback. GET DAILY NEWS ALERTS FROM CRAIN’S!

Register for free email alerts and receive: Contact Us To Schedule Your ■ The Morning Roundup Facility Audit Consultation ■ Breaking news alerts ■ Daily headlines 440.829.4299 [email protected] ■ Dealmaker Alert: Published f in Wednesday. ■ Health Care Report: Energy Savings Up To 70% Published Tuesday. Maintenance Free Benefi ts ■ Manufacturing Report: FirstEnergy Rebates Published every other Sustainable Solutions Wednesday. Complete Turnkey Process ■ Real Estate Report: Published Monday. ■ Small Business Report: MIDWEST Published Thursday. LIGHTING ■ Shale and Energy Report: Published Friday. GROUP Cleveland’s Premier Lighting Solution SIGN UP NOW AT: www.midwestlightinggroup.com CrainsCleveland.com/register 20140414-NEWS--12-NAT-CCI-CL_-- 4/10/2014 3:39 PM Page 1

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GOING PLACES JOB CHANGES ARCHITECTURE CITY ARCHITECTURE: August Fluker, Alex Pesta and John Wagner to owners. Paul Volpe to senior principal. Brandle Wright Seifried Mossor Favor Mickey Nose Kazi CONSTRUCTION Seifried to senior project consultant KOKOSING GROUP: Lee Schloss CONSULTING to president, Kokosing Materials and director of strategic accounts. Inc. 3-D BUSINESS ACCELERATOR: OXFORD GLOBAL RESOURCES: Rob Johnston to partner. METIS CONSTRUCTION SERVICES Amy Karpowicz to vice president, LLC: Julie Brandle to president; BDEWEES CONSULTING: Rob local operations. Katie Wright to vice president, Johnston to partner. RICHTER HEALTHCARE human resources. BURIC GLOBAL LLC: Mark M. CONSULTANTS: Tammy Mossor to manager, home health and hospice Sack Ninneman services. Stocker Hickle investment adviser representative. EDUCATION MARKETING SPERO-SMITH INVESTMENT AGNON SCHOOL: Kimberly Favor ADVISERS INC.: Jeffrey N. ADCOM GROUP: Morgan Mitchell to middle school director. Malbasa to president, COO; Robert to account executive; Stewart Ryan C. Smith to chairman, CEO. to producer; Scott Carpenter and ENGINEERING Sarah Sanborn to senior account WELLS FARGO ADVISORS: John MS CONSULTANTS INC.: David executives; Sara Naggar to senior Blaha to wealth insurance specialist, manager, social influence. Mickey to architect. Northeast Ohio. BROKAW: Renee Alexander FINANCE HEALTH CARE to director, digital and social media strategy. LORAIN NATIONAL BANK: David HOME CARE ASSISTANCE OF Nose and Angie Kazi to vice CLEVELAND: Stephanie Hatala C.TRAC INC.: Lauren Jacenty president, commercial banking group. to client care manager. to account coordinator. We Solve Problems. STEVENS STRATEGIC FINANCIAL SERVICE HOSPITALITY COMMUNICATIONS: Chris Cugini to content specialist. Effectively. Efficiently. Consistently. APPLE GROWTH PARTNERS: RITZ-CARLTON CLEVELAND: Harold Gaar to CEO. Elizabeth Lipstreu to business BOBER MARKEY FEDOROVICH: travel sales manager. MEDIA John E. Jenkins to senior manager, WKYC-TV3: Micki Byrnes to vice 36 South Franklin Street tax services; Jonathan C. Stocker to INSURANCE president, station manager. Chagrin Falls manager, business development. ALEX N. SILL CO.: Michael S. 440-571-7777 CORNERSTONE ASSET Hickle to manager, adjusting NONPROFIT MANAGEMENT SERVICES INC.: department. ASM INTERNATIONAL: Christina We are a different kind of business law firm. Stephanie Anastasakis to partner METLIFE PREMIER CLIENT Sandoval to exhibition planner. Learn about us at and director of marketing; Joe Mallo GROUP: Michael Connole to www.gertsburglaw.com, or to vice president, business managing director. AWARDS call us to discuss your legal matter. development and national sales KENT STATE UNIVERSITY: manager; Mitchell DeVan to LEGAL Constance D. Harper (Call & Post) received the 2014 Diversity in Media MEYERS Distinguished Leadership Award. ROMAN: Rachel Lerner, Mark J. ST. PAUL AFRICAN METHODIST Sack and EPISCOPAL CHURCH OF AKRON: Andrew R. Iris E. Harvey (Kent State University) Thomas to received the 2014 Harold K. Stubbs of counsel. Humanitarian Award in Education; Vir- ginia Albanese (Kent State University) TUCKER ELLIS received the 2014 Harold K. Stubbs LLP: Sheila Ina Humanitarian Award in Business. Ninneman to associate. WESTON HURD LLP: Rema A. Ina Send information for Going Places to associate. to [email protected].

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APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 Anchor Industries is growing

By DAN SHINGLER the same site, 30775 Solon Industri- ing in Solon with a 144,00-square- [email protected] al Parkway, they said. Anchor did foot building, and cosmetics maker not receive any special tax incen- Cosmax USA has purchased and Anchor Industries is expanding in tives or other subsidies for its ex- will take over a 338,000-square-foot Solon, where it has received ap- pansion, Dorfman said. manufacturing building formerly proval to construct a 50,000-square- As for the construction of the new owned and operated by L’Oreal foot manufacturing and warehouse building, a date has not been set, USA. building, according to city zoning of- but city officials think it will begin Economic development activity ficials. fairly soon. “comes and it goes, but actually this Anchor produces aftermarket en- “Usually if someone has a site year has been a little on the busy gine and transmission mounts, as plan approval the project follows in side” Dorfman said. “The Nestle well as support bearings, strut short order,” Dorfman said. product technology center is well The project is just the latest de- under way and Cosmax should CONTRIBUTED PHOTO mounts and other products for both older and late-model cars. It sup- velopment in a busy period for the be moving in sometime later this BurkleHagen Photography will be located on the fourth floor of the old Milk city and Dorfman. Nestle is expand- year.” ■ Factory Building in Cleveland’s MidTown neighborhood. ports a full line of automobiles, in- cluding most brands made in the United States, Asia and Europe. An Anchor official said the compa- New photography studio ny was not yet prepared to discuss the details of the project or its ulti- mate end use. could be attractive site Solon economic development di- rector Peggy Weil Dorfman an- nounced in her April newsletter to residents that the city had approved for local food businesses the project. The plan was approved AIR CHARTER SERVICE at the end of last year, she said. Doc- AIRCRAFT MANAGEMENT By KATHY AMES CARR Two, 4-foot-by-10-foot former uments with the city’s zoning de- [email protected] bowling alley floorboards function partment indicate the building will as the kitchen’s islands. A wooden be used for manufacturing, ware- Two food photographers with a floor supported by a spongy base housing and distribution. combined 32 years of experience makes it easier for stylists and pho- Though Ms. Dorfman said she did are launching a 6,000-square-foot tographers to be on their feet during not have details on Anchor’s specif- boutique studio dedicated solely to long days of shooting. ic plans for the building, she noted commercial food photography for Reclaimed material, from tables that the company already is a signif- local and national food-related to doors, comes from Old School icant contributor to the city’s econ- businesses. Architectural Salvage in Cleveland’s omy and that she is glad to see it David Hagen and Andrew Burkle Flats neighborhood. Three sets of 8- grow there. have formed BurkleHagen Photog- foot-by-12-foot windows face west “That’s a sizable facility,” Dorf- raphy, located at 3500 Payne Ave., toward downtown, providing natur- Northern Ohio's Largest man said of the proposed new con- on the fourth floor of the old Milk al night and a full vista of the city’s struction. “It’s very good to see a Air Charter Service Factory Building in Cleveland’s skyline. Solon business doing well and grow- MidTown neighborhood. The duo “We love this neighborhood be- Serving the area with 4 Beechjets and 2 Hawkers ing.” — who will be working with local cause it’s surrounded by such great • In-flight Wi-Fi Now Available • Zoning officials say the project will food stylists — are retrofitting the restaurants and food businesses, be built by Geis Cos. Geis in 2012 space to accommodate a commer- and we have this incredible view,” www.FlySkyQuest.com • 216-362-9904 constructed a similar, 50,000- cial kitchen, walk-in-pantry, six Hagen said. square-foot building for Anchor on shooting stages, a shower, client The studio currently is in conver- seating, conference room, offices sations with some local food indus- and a custom-built prop area. try giants and local chefs, Hagen “Unlike self-contained studios in said. A May 3 open house is Chicago and New York, which have planned. limited space and often have to rent Both Hagen and Burkle indepen- props, we’re able to store a whole dently have worked for some of the range of items, like dishes and glass- nation’s largest brands and notable When morale is high, ware,” Burkle said. chefs, including J.M. Smucker Co., everybody gets to ride. The commercial kitchen features Nestle, Vitamix, the National Pork two double farm sinks; two five- Board and Kellogg’s. Hagen is a for- burner stoves; two double-wall mer photographer for Cleveland- ovens; two commercial-grade refrig- based Kalman & Pabst Photo Thrills bring every group together. erators and freezers; a microwave; Group. Burkle most recently owned Experience the thrill of our two new rides, and black granite countertops. his own studio in Chicago. ■ Pipe Scream and Lake Erie Eagles. The excitement of the water rides. And not to mention the hot dogs. With something for everyone to enjoy, take your next group outing to the Best Amusement Park in the World and experience thrills they’ll never forget. Learn more at cedarpoint.com/ group-sales/corporate-programs, or call 1-800-448-2428.

Opens May 10 20140414-NEWS--14-NAT-CCI-CL_-- 4/10/2014 3:21 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

We are pleased to welcome: Edwins Leadership and Restaurant David H. Gunning II Institute grads go to head of class The distinguished real estate attorney has joined our here’s a certain amount of Business Department. pomp and circumstance that is due the first graduat- David H. Gunning II ing class of Edwins Leader- Tship and Restaurant Institute. t
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West Palm Beach month classroom and training pro- gram can be credited for bolstering NDEPOBMEIPQLJOTDPN monthly sales to an average of $130,000 beyond the original fore- cast of $100,000 at the nonprofit’s Shaker Square French eatery. The students are landing jobs in the kitchens and at the front of the house at venerable local eateries, such as Greenhouse Tavern, Red The Steakhouse, Moxie, Wil- leyville, Hodge’s, Melt Bar & Grilled and so on. Two students re- cently returned from Chicago, where they completed apprentice- CONTRIBUTED PHOTOS ships at award-winning restaurants James Gaines (top) and Dylan Wilkins are part of the inaugural graduating class GT Fish & Oyster, and Grace. of Edwins Leadership and Restaurant Institute. But the real success is the turn- around these former prisoners have nonprofit is delivering on its social annual craft beer output by increas- made in their lives, said founder mission. ing from 13,000 to about 20,000 the WKSU listeners are 88% more likely to Brandon Chrostowski. The operation’s eatery is trend- number of barrels of beer it pro- spend up to $5,000 annually “I’m extremely proud of these in- ing toward $1.5 million in sales by duces. Plans call for another 28, dividuals. We started with this the end of its first year, surpassing 170-barrel tanks over the next four on landscaping. wrecking ball mentality to get this Chrostowski’s initial projection of years, which would nearly triple project off the ground, and in the about $1 million. current production capacity to Grow your audience with our listeners. middle of it all are these huge trans- “I always under-project and about 34,000 barrels. Contact us for a media kit. formations these people have over-deliver, but we’ve just been The brewery has a strong pres- wksu.org/support/corporatesponsorship or 330-672-3114 made,” Chrostowski said. “It’s killing it,” he said, noting that de- ence in Northeast Ohio, though working. It shows there is hope af- spite healthy sales, the restaurant’s supplies in limited amounts its craft ter prison or jail, and it’s radiating labor costs are higher than at for- beer to markets in Indiana, western now on a larger scale.” profit peers. Pennsylvania and Florida. The inaugural graduating class of “Labor usually represents 25% of “Our distributor is saying we’re Edwins — a hospitality center train- our costs, but here, it accounts for not supplying enough beer in the ing ground for individuals seeking the mid-30s because we have seven pipeline, and we need to get more successful re-entry into the profes- or eight times the average amount beer out to people,” brewer and co- sional world — have spent 30-plus of staff” with about 50 employees, owner Matt Cole said. “We’re grow- 14-0041 hours a week since Nov. 1 learning including the students and seven ing really fast.” Fat Head’s also is through coursework and hands-on managers. planning later this year to open a experience all aspects of running a “I’ve been going seven days, 110 brewpub in Portland, Ore., and has restaurant, from prep work and hours a week,” he said. “I was just plans to penetrate markets along pastry to hosting and management. able to give some of my managers the West Coast. But, as with any startup, there’s a some days off.” ■ St. Vincent Charity Medical Cen- learning curve and period of adjust- Edwins’ restaurant sales subsi- ter is providing a $10,000 sponsor- ment. dize the nonprofit’s mission. ship for the Downtown Farmers Edwins’ initial class size was clos- The nonprofit prior to its launch Market’s 2014-15 season to bolster Murray & Murray er to 60 students, though a dimin- raised $300,000 through a combi- its visibility. ished count was expected. Still, nation of various entities, including Chrostowski is recalibrating several Cleveland Foundation, RPM Inter- The farmers market will be rolling Lawyers who mean business. aspects of the program, including national and Fairmount Minerals out a new branding and marketing screening program candidates as well as individual donations. campaign that will focus on its pro- more carefully, to improve student Chrostowski said he plans to con- ducers and farmers, including Serving businesses and individuals retention. tinue fundraising for more specific Melissa Khoury of Saucisson, a bou- “We projected 50% to 60% attri- initiatives, such as hiring addition- tique butchery, and Hunter Harlor since 1931. tion, but we want to reduce that to al instructors and helping subsidize of milk maker forty.one. closer to 30%,” he said. “We’ll be students’ apprenticeships abroad. “This partnership will allow us to grinding them during the interview “This has just been an incredible connect more people to farm-fresh to make sure they’re committed to experience for everyone involved,” food and continue doing our part to this program. We want to get down he said. grow a regional food economy and Business & Commercial Dispute Resolution to the core of who they are and a healthier Cleveland,” said Ashley Shaw, market manager. make sure they want it.” Local news He also plans to enroll eight stu- The market operates from 11 dents on a rotating monthly basis, ■ Fat Head’s Brewery is making a.m. to 2 p.m. every Friday at the instead of beginning with one larg- sure the remaining empty space in 5th Street Arcades. Its summer sea- er class all at once, to connect more its 22,000-square-foot production son begins June 13 at Public Square. intimately with students in the facility in Middleburg Heights does- ■ Chris Hodgson nabbed Food and classroom. n’t go to waste. Wine’s award for the People’s Best (DVW6KRUHOLQH'ULYH‡6DQGXVN\2+ If sales at the restaurant — which The North Olmsted-based brew- New Chef of the Great Lakes region. has quickly gained a foothold as a er is purchasing seven, 170-barrel Hodgson is a pioneer of the local ‡ZZZPXUUD\DQGPXUUD\FRP key player in Cleveland’s culinary fermentation tanks, which will food truck movement and a scene for its top-notch service and bring to 23 its total tank count. The chef/consulting partner with Drift- cuisine — are any indication, the additional equipment will beef up wood Restaurants. ■ 20140414-NEWS--15-NAT-CCI-CL_-- 4/10/2014 4:25 PM Page 1

APRIL 14 - 20, 2014 CRAIN’S CLEVELAND BUSINESS 15

INSIDE

17 ESOPS SHOULD BE PART OF SUCCESSION DISCUSSIONS SMALL BUSINESS Hunger to grow

■ How do you define a startup? “I define a startup as someone who’s got an idea and they’re trying to run with it …I felt like a startup for probably a feeds new focus good three to four years. Then, when we started another product it made me feel like a startup all over again. Where Entrepreneur’s appetite for challenges takes we are with the manufacturing, I don’t feel like a startup anymore,” said Dianna her from catering to food manufacturing Dunlevy-Seufer.

By SHARON SCHNALL In 2000, the catering business’s ■ What have been your growing [email protected] gross sales were about $100,000, Dun- pains? “For us, first and foremost, is levy-Seufer said. surrounding yourself with the right ianna Dunlevy-Seufer never While declining to discuss specif- people whether they be employees or wanted status quo. Other- ic 2013 gross sales, she indicated contracting with vendors. I need the D wise, she might still be a that the food manufacturing busi- right team in place. If you don’t have the home-based caterer serving a North- ness sold 220,000 units up from right people in place then it causes so east Ohio market. 7,000 units during 2004’s first many issues. The biggest growing pain Instead she chose, in 2004, to ex- full year of manufacturing. Last is getting the right people at the right pand the then 4-year-old catering year’s gross sales, she said, re- time in the right place.” business named d’marie Inc. to in- flect a 495% increase in growth clude wholesale food manufacturing. from 2004. ■ What are the building blocks for “I love the energy of the startup. It’s business growth? “… Listening to the unknown,” she said. “I can’t sit SUBMITTED PHOTO A beginning foodie your customers. That is key and why we still. It’s ‘so, OK, we got this all figured stay involved in the field and hear what’s out. What’s my next challenge?’” Clearly, Dunlevy-Seufer was a food going on, so we can continue to build Dunlevy-Seufer closed the d’marie trade neophyte when she launched upon what we’ve started. We try to be catering business in 2011. However, the catering business in 2000. That very good listeners — to our cus- the d’marie name — a play on the business start followed years of selling tomers, employees and representatives founder’s first and middle names — WebMD portal subscriptions to — and be open. And, the beauty of continues with food manufacturing as physician practices, pitches that com- being a small company is we can act on the primary focus. bined catered meals and sales presen- it.” Today, the Bainbridge Township tations. Over time, she jokes, her business produces frappe vino mix, medical audience was “more interest- ■ What is the next big challenge? triangle chips, dip mixes, bacon sea- ed in lunch” than her message. “… Success is progression and always sonings, pancake and waffle mix and Following a WebMD merger with growing. I want to keep growing. I want event-themed food bags — in all, 18 another vendor and her eventual lay- to keep challenging myself. I’m looking products ranging from $5 to $25. A off, Dunlevy-Seufer explored business at different opportunities. There’s so national customer base is served ownership, one that would support much we can do I just need to decide through 500 direct-to-consumer food personal life changes including a re- which (opportunity) we go after.” shows and special events each year, cent divorce and a desire to be with in addition to wholesale channels and her then 7-year-old daughter. She en- This year, Crain’s Cleveland Business online sales; export opportunities are joyed cooking and recalled the meals is focusing on small businesses and their being considered. that pharmaceutical company repre- second-stage journeys. The stories focus on Frappe vino, a frozen wine and sentatives — her future clientele — smaller entities that have moved beyond — or are trying to move beyond — the startup cocktail slush mix, the company’s top had used to market physician prac- phase. If you have a suggestion for a business seller, is sold locally at The Winery at tices. or topic related to second-stage growth, Spring Hill of Geneva, Olympia Candy Using funds from her severance contact Amy Ann Stoessel at of Strongsville and Mustard Seed package, she spent $2,500 to start the SHARON SCHNALL [email protected]. Market & Café of Solon. See HUNGER Page 16 Dianna Dunlevy-Seufer, owner of d’marie Inc. Mentor aims to open up a whole new world

Her job is to make sure that never happens ty, covering six counties in the region. City hires international again within the city limits of Mentor. Though she has worked with companies in The city hired Holizna as its first interna- Mentor before, now she can give them all her trade administrator to tional trade administrator back in December. time and attention. Those two resources are Since then she’s been on a mission to meet critical: Getting the owner of a small compa- help its companies sell with “each and every business” in Mentor ny to the point where he or she is comfortable that might have an exportable product. And doing business overseas can involve a lot of more products globally there could be a lot of them: There are more hand holding, according to Holizna, who also than 200 manufacturers in the city. spent several years at Day-Glo Color Corp., a By CHUCK SODER Some are small companies that have nev- Cleveland company that sells fluorescent pig- [email protected] er sold a product outside the United States. ments all over the world. But even midsize manufacturers often need “You’ve got to slowly get into these compa- lasphemy! help getting certification for products sold in nies one by one,” she said. Kim Holizna has spoken to a few com- the European Union, forming joint ventures She’s also working with somewhat larger B panies in Mentor that have turned in China or navigating the tax system in companies that have done some exporting. Today, Holizna is helping Buyers Products away people who have contacted them out of Brazil. One of them is Buyers Products Co., which fo- approach foreign markets in a more sophis- the blue, wanting to buy their products. Holizna has experience with such matters. cuses mainly on making parts and acces- ticated way. For instance, the company al- The reason? Those hot sales leads came She has spent almost 20 years helping other sories for trucks and trailers. ready works with distributors in several coun- from other countries. companies do business in other countries. That company, based at 9049 Tyler Blvd., tries, but Doerr said he doesn’t “know if, in “People have come up and flat out told me, Most recently, she served as director of the has seen its international sales “grow consis- every case, we found the best distributor.” ‘I gave those away.’ What? They gave business International Trade Assistance Center’s tently, year after year,” according to Dan Do- The company ended up in those relation- away,” she said. Northeast Ohio office at Kent State Universi- err, director of new product development. See MENTOR Page 17 20140414-NEWS--16-NAT-CCI-CL_-- 4/10/2014 4:12 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS APRIL 14 - 20, 2014 Hunger: Coach plays key role

continued from PAGE 15 Meanwhile, d’marie’s food Moving sooner than later catering business; one full-time manufacturing endeavors contin- From experience, Dunlevy- employee was hired. ued to grow: more offerings had Seufer advises other growing food Meals were prepared from a been added to the product portfo- businesses to acknowledge when shared, rented space at a nearby lio and the company’s reach had relocation is necessary. She had commercial kitchen housed in a extended across the country. Ulti- been “too close to the business” to Bainbridge Township church; mately, by 2011, the focus was see that remaining in the original other operations were handled transitioned entirely to food man- location was inefficient. A proper elsewhere. ufacturing and the catering busi- facility allows for storage, parcel “Your warehouse is your ness was closed. pickup and selling the product not dining room. Your office is “She was going through a big only in quantity but easily from a your car. It’s chaotic to jug- shift. She realized the catering loading dock. gle it all, but when you’re business was going away,” said Deb “Everybody is afraid to pay rent, small, you do it,” Dunlevy-Seufer Mazzaferro, a specialty food indus- but once you do it, you see how said. try coach and consultant based in much easier everything becomes,” Early on, she created seasoned Sarasota, Fla. “She was going away she said. “… You can buy supplies triangles to accompany the from being the caterer to being this bigger and more cheaply. You catered sandwiches, salads and wholesale direct business. She was don’t run out of supplies during an wraps. re-creating the business … Diana order. You don’t realize you’re “It’s not quite a chip and it’s not transitioned into something rele- wasting your time.” quite a cracker,” she said, describ- vant. She was insightful.” The latest space accommodates ing the triangle’s consistency as Mazzaferro has provided coach- larger, more complex equipment, but also reflects a learning curve, akin to layers of pie crust or phyllo ing and consulting services to d’- with new suppliers and vendors dough. marie since 2007. Prior to estab- and training regarding the quirks Soon, physicians’ spouses and lishing her consulting practice, in of specialty equipment. National- secretaries were contacting her 2001, Mazzaferro had more than ly, 15 food dealers sell the product with triangle orders for showers 20 years of direct sales and mar- at shows and to regional accounts. and graduations. keting experience in the food in- Locally, 12 employees, including dustry. Relocation and consolidation Dunlevy-Seufer, work year-round Dunlevy-Seufer credits coach- became necessary not once, but at company headquarters and are twice. ing as critical toward stewarding joined by another eight prior to business growth — literally so. the holiday season. When, for this latest move, from Mark Seufer, who is married to One door closes, Bedford to Bainbridge Township, another opens the company’s founder, joined the she targeted a 7,500-square-foot- business full time in 2007, and In 2005, d’marie moved to a space, coaching led to considering manages sales and operations as leased 4,000-square-foot space in a 10,000 or greater square foot well as equipment maintenance Bedford; the $100,000 relocation space to avoid prematurely out- and employee training. For her cost was self-funded. growing that next space. part, Dunlevy-Seufer focuses on vi- By 2008, the catering business In 2011, d’marie landed in the sion, social media initiatives, creat- was not thriving, Dunlevy-Seufer current 14,000-square-foot leased ing new products and branding said, because of the recession, location; 10% of the space is allo- and sales. And by temperament pharmaceutical company budget cated to Chagrin Valley Kitchen, a she will seek out more “growth and cuts and regulatory and in-house cooperative kitchen she estab- getting to the next level.” restrictions on physicians receiv- lished. The move, cost about “I need to look for the next chal- ing catered meals from pharma- $200,000, and was, again, self- lenge,” she said. “I need some- ceutical companies. funded. thing to stir the pot a little bit.” „

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APRIL 14 - 20, 2014 SMALL BUSINESS CRAIN’S CLEVELAND BUSINESS 17 ESOPs can be part of succession strategy

n the six-year period ending in There are many benefits to using Selling shareholders can transfer back the stock upon termination of 2012, taxpayers were reluctant CARLGRASSI an ESOP to acquire shares in a the qualified replacement property employment. to structure transactions to de- closely-held company. First, the by gift or upon death without trig- An ESOP can eliminate many of fer taxes because tax rates were ESOP essentially creates a market gering the deferred gain. these concerns because, like other Ivery low (especially on capital for a minority interest in the com- This allows a business owner to types of qualified plans, ESOPs pro- gains). pany. While many ESOPs are diversify his or her investment in vide the employees with a benefi- Why defer taxes if rates are only formed to purchase at least a 30% the closely-held business without cial ownership interest in the equi- going to increase? As of last year, interest in the sponsoring compa- triggering any gain, and complete- ty of the company but generally the highest tax rate on most capital ny to take advantage of the tax de- ly eliminating the gain if the quali- without the voting and other rights gains rose to 23.8% (which includes ferral described below, there is no fied replacement property is held of a shareholder. the additional tax on investment TAX TIPS minimum percentage that the until the shareholder’s death. An ESOP will not work in every income). ESOP can purchase. There are also benefits to the situation. Having a sufficient num- This rate is more than 50% high- plan. It is similar in many ways to Selling a minority interest in the company. From a tax standpoint, ber of employees with relatively er than rates were in 2012. Many a 401(k) or profit sharing plan, ex- company to an ESOP can allow the the company will get a tax deduc- low turnover is important. Most observers think it is very unlikely cept that its primary asset is stock current shareholders to maintain tion for the interest paid to the companies implement an ESOP that these rates will be going up of the sponsoring company. control of the business and remain lender and for an amount equal to with borrowed money, meaning anytime soon. This may, therefore, The ESOP contracts to purchase employed by the company. the principal payments, generally the company needs to have suffi- be a good time to once again con- stock of the company from one or There can also be significant tax not in excess of 25% of the eligible cient capacity for additional debt. sider techniques for deferring tax- more selling shareholders at a price benefits to the shareholders. If the compensation of ESOP participants. Also, the costs of setting up and es, especially on significant trans- determined by a qualified ap- company is a C corporation, as long Another reason to consider an maintaining an ESOP are not in- actions such as the sale of a praisal. In order to effectuate the as the ESOP owns 30% or more of ESOP is to create a stock-based re- significant, and an experienced company. purchase, the company often will the company shares after the ac- tirement plan for employees to re- team of legal and financial profes- Driven in part by the current tax borrow the necessary funds from a quisition, the selling shareholders place or supplement existing plans. sionals is critical to the successful rate structure, many business own- qualified lender (i.e., a bank or oth- can generally defer the income tax Many business owners like the adoption and operation of an ers are considering employee stock er lending institution). on the gain from the sale of the idea of employees thinking of ESOP. Despite these concerns, an ownership plans (ESOPs) as part of This is called a “leveraged” ESOP. stock. themselves as owners of the com- ESOP should be a part of the dis- their succession plan. The company immediately lends Provided the proceeds received pany, but do not like the idea of giv- cussion for any business owner The basic mechanics of an ESOP this money to the ESOP, and the by the selling shareholders are ing employees voting rights, hold- considering succession planning. ■ are relatively straightforward. The ESOP uses the money to pay the rolled over into “qualified replace- ing shareholder meetings, and company forms an ESOP, which is purchase price to the shareholders ment property,” no tax is due on entering into shareholder agree- Grassi is president of McDonald essentially a qualified retirement for the acquired shares. the sale of the shares to the ESOP. ments with the employees to buy Hopkins LLC. Mentor: Attracting foreign investment to city also a focus ships through happenstance: ers Products with a consultant week a Brazilian lawyer who of- who have gone abroad,” Doerr one with a focus on internation- Those distributors were the ones who is scheduled to meet with ten works with Baker Hostetler said. al trade because manufacturers who reached out to Buyers Prod- the company later this month to in Cleveland talked to about a Holizna, who receives help form “the heart” of the Mentor ucts. Now the Mentor company talk about the process of getting dozen Mentor-area executives from her colleagues in the city’s economy, according to city aims to find the best distributors products certified in the Euro- interested in doing business in economic development depart- manager Ken Filipiak. They who truly understand the com- pean Union. that country. ment, also is tasked with helping make a lot of high-tech, high- plexities of doing business in a She also organizes events The event also was a great attract more foreign investment value machines and medical de- particular country, Doerr said. about topics related to interna- chance “to rub elbows with to Mentor. vices that “are ideal for export,” Holizna Holizna also connected Buy- tional trade. For instance, last other companies in the area The city wanted to hire some- he said. ■

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18 CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS APRIL 14 - 20, 2014 A helpful push to get your head in the game

he said. chologist for a number of years,” he ing different athletic teams and Specialized field of psychology helping Lang, who also works as a figure said. “I wanted to be cautious. I sports. skating professional, including wanted to have substantial creden- “You have to go to the people if athletes overcome performance anxieties coaching and choreography, said tials before I used that name.” you want to attract them,” Fender- sport psychology helped him go Lesyk is the author of “Develop- Scarr said. By SHARON SCHNALL Today, the Association for Ap- from being anxiety-ridden [email protected] plied Sport Psychology, a 1,900- ing Sport Psychology to highly competitive. member international association within Your Clinical Prac- “(Sport psychology) Understanding the ittle did psychologist Dr. Jack founded in 1986, lists 10 Ohioans, tice: A Practical Guide for turned (it) completely athletic culture J. Lesyk know that when he four from Northeast Ohio, as certi- Mental Health Profes- around,” he said. “It was An athletic background is not an was contacted by the mother fied consultants. sionals.” He recalls in the L taking those (anxious) mo- early 1980s, “maybe 10” absolute prerequisite to being a of a figure skater who was experi- Lesyk, who is a past president of ments and not being wor- successful sport psychologist but it encing anxiety during competition, the association, has witnessed his sport psychology books ried but being excited. ... I certainly helps. it would open up a specialized field sport psychology-based client pop- written by professionals loved to skate but I couldn’t “It’s someone who has a good of practice to him. ulation increase from 40% of his to- Lesyk for professionals — hard- figure out why I had the understanding of the (sport) culture The year was 1981, and the then- tal in 1994 to 75% in 2000. So much ly household vernacular. anxiety. It was just like conquering — the distinct pressures athletes ex- teenaged skater was Mark Lang. so, he finalized a decision last year “It was hard to get established,” the problem.” perience,” said Darla Sedlacek, a “If you’re training to your optimal to stop accepting clinical referrals said Lisa Fender-Scarr, an owner of psychologist since 2001, specializ- level and achieving your practice reflecting general concerns and in- Summit Therapy Group of Akron. ing in sport and performance psy- goals, if there’s a drop-off (at com- stead concentrate on sport and per- “There weren’t academic pro- Pathway to practicing chology and owner of Transform petitions), you know there’s anxi- formance clients. grams to become a sport psycholo- Practitioners, like Lesyk, arrive to Sport and Fitness Services of Lake- ety,” said Lang, a former Ice Ca- His Beachwood practice, the gist. Now there are some programs this specialized arena via different wood. pades performer and now a Keller Ohio Center for Sport Psychology, but they are limited ... you have to pathways. In addition to serving a client Williams real estate agent working recently expanded beyond the ath- develop it yourself. You have to go Lesyk, who previously worked as a population that is two-thirds athlet- out of the Crocker Park-Greater letic community to serve other out and seek your training whereas clinical psychologist, first at state ic concerns, Sedlacek also is a certi- Cleveland West office. clientele — including musicians in a regular psychology program, psychiatric hospitals in Northeast fied personal trainer. Lang ended up being Lesyk’s first and executives — who are dealing those internships are already plant- Ohio and then as a private practi- ed in the community.” A fitness studio is on the premis- sport psychology client — and the with performance issues unique to es of her practice’s headquarters. tioner, first was exposed to sport Fender-Scarr’s 1998 University of start of the psychologist’s 30-plus their professional environments. A lifelong athlete and avid run- psychology training during a 1983 Akron doctorate is in counselor ed- years in a field that has been grow- An estimated 90% of the athletes ner, she participates in ultradis- conference offered by the U.S. ucation and supervision; now a ing in both interest and under- who see him “want to learn how to tance marathon events — her next Olympic Committee. clinical counselor, 25% of her prac- standing. relax in high-pressure situations,” event will be a 100-mile summer “I did not use the term sport psy- tice represents athletic concerns. trail run. Other pastimes include She designed her way into the spe- martial arts training, strength train- cialty, around 1986, after taking an ing and yoga. undergraduate physical education Presented by One “tool” she teaches is “self- course called “The Psychology of talk.” Athletes need to become Coaching.” aware of the “thoughts and chatter” That Kent State University occurring in their heads. “The task course, she said, helped address her is to observe it, recognize it and let own emotions regarding sustaining it go; the emphasis is not to turn it Supported by a sport injury and terminating a into the positive but make it a neu- gymnastics career; the course also tral,” she said. took her education and career in an Lesyk — who developed a pas- unintended direction. sion for sports through running and “It was so new; you could create marathon participation — teaches yourself to be an expert in the field,” clients such techniques as how to Join us in honoring their dedication, she said. relax under pressure; mental visual- Client referrals now come from ization; progressive relaxation innovation and leadership university faculty, coaches at gyms biofeedback; and how to self-mon- and an online Psychology Today list- itor. ing. Mindfulness, he said, leads to Her sport psychology practice controlling attitude and effort, mak- LIFETIME ACHIEVEMENT HONOREE segment has a primary focus on ing better choices and ultimately gymnasts, but also serves runners, experiencing pride regarding an wrestlers, football, baseball and outcome. soccer players, swimmers and most “A lot of what we practice in recently, a riflery client. sports psychology goes beyond “To sustain your business you sports and helps them to optimally have to go out and seek the athletic function in other areas of their lives environments. ... It’s about pursu- as a whole,” Sedlacek said. ■

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APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 Jobs: Slow and steady could work well for the industry continued from PAGE 8 “From the producer side, it means a great business opportunity; that’s where Northeast Ohio comes in,” Carlsson continued.

Sustainable businesses The biomedical industry has two other sub-sectors: research and de- velopment and the pharmaceutical business. But the medical device sub-sector is biggest. “As a share of the total, medical device manufacturing, in terms of output, has grown the most out of those three elements of the biomed- ical industry,” Duritsky said. “That makes sense because a lot of the R&D work and lab work is spun out of the hospitals and med device manufacturing is benefiting a lot from that research.” Among the major firms in the bio- medical sector are Elyria’s Invacare Corp. and Philips Healthcare in REBECCA R. MARKOVITZ Highland Heights, both of which A view of the Uber app on an iPhone as someone waits for a driver to complete a pickup. make medical devices, and Steris Corp. of Mentor, which makes infec- tion prevention systems. The Team NEO review estimates Cabbies: Ride services are focusing on tech the biomedical sector of the gross re- gional product, or GRP, has grown continued from PAGE 1 take a hard look at. We have been, University medical and dental stu- Asked about his thoughts on the from $3.5 billion in 2000 to $5.6 bil- He doesn’t have an issue with the but now we’ll take a closer look … If dents, a U.S. postal worker and a companies, Brian McBride, whose lion in 2014. GRP is a measure of the city’s regulatory oversight, but he it’s apparent there is some non- chef all looking for extra cash. company operates Yellow Cab, market value of all final goods and said it also should apply to Uber compliance, absolutely the city has Cleveland is Lyft’s 31st market. Zone Cab and Westlake Cab in the services produced in an area in a and Lyft. to take action,” Keane said. “It’s “I know a couple of people who Cleveland area, pointed to a wrong- particular year. Moody’s “It’s an expense we can’t afford very important for the city, to the use Lyft or driven with it in different ful death lawsuit filed in California economy.com provides Team NEO to take if our competition doesn’t visitors and those who use these cities, and they had nothing bad to by the family of a 6-year-old girl with the data for its quarterly reviews have to,” Keenan said. “We’ve al- services to be treated with respect.” say about it,” Gagliardi said. “I saw killed by an Uber driver on New of the economy in 18 counties in ways embraced competition, but ads that it was coming to Cleveland, Year’s Eve in San Francisco. Northeast Ohio. and I knew I’d love to have second McBride also suggested the dri- Importantly, the industry largely it’s always been a level playing field Mustache love until lately.” job but didn’t always have time be- vers often don’t carry the proper in- has avoided the ups and downs of Company officials for Uber and Lyft and Uber characterize them- cause I’m a teacher.” surance. other sectors of the regional econo- Lyft chalk up concerns like selves as tech companies rather “This is all going to shake out, my. than transportation companies, as but the problem is getting people “This is a sustainable industry Keenan’s to nothing more than Safeguards in place? sour grapes. James Ondrey, a they don’t own the cars or employ excited ahead of time to lay the here that has grown the right way,” Cleveland native and Uber Ohio’s the drivers. The drivers are inde- Both companies say drivers con- framework to protect the public,” Duritsky said. “It hasn’t been boom- general manager, said the taxi in- pendent contractors looking for ex- nected through their apps undergo said McBride, chairman of Cleve- bust. It’s been really smart, thought- dustry is “failing consumers” and tra income. extensive background and driving land’s United Garage and Service ful, incremental decisions that have his service will “alleviate all of the With both apps, riders don’t have history checks. Still, those safe- Corp. grown it.” pain points we hear people talking to physically flag down a cab or guards haven’t exactly satisfied all McBride admits any potential about,” such as cabs’ cleanliness, fumble with cash given that their of Lyft’s and Uber’s critics. pushback by the city could result in 2.1% growth forecast for 2014 timeliness and overall conve- credit card information is already an immediate backlash via social nience. on file. Instead, with a few taps of a media from the apps’ fervent fan More generally, the quarterly re- That said, ride-hailing apps like button, a ride is reserved and a car MORE ONLINE base. port pegs total employment in the Lyft and Uber haven’t come with- should arrive in a matter of min- “Every time this happens, a virtu- region at 1.89 million at the end of Last Thursday, reporter Timothy out criticism. Some have ques- utes. al mob appears and pummels the the third quarter of 2013, the latest tioned their safety and accused In Uber’s case, it’s typically a lux- Magaw took an Uber ride from politicians,” McBride said. data available. That marked the 13th them of price gouging during times ury black sedan or SUV steered by Crain’s downtown Cleveland of- consecutive quarter of growth, fices on West St. Clair to Cleve- though jobs increased by only 9,900 of high traffic and inclement full-time livery drivers with com- Get a move on it weather. Last Wednesday — the mercial drivers’ licenses looking for land Pickle on Euclid Avenue to positions between the third quarter day Uber went live in Cleveland — extra cash when their schedules are grab lunch. Lyft and Uber no doubt of 2012 and 2013. the city of Columbus sued the com- free. The company also boasts its After a few taps to his iPhone’s drummed up a significant amount Given that modest growth, unem- pany, claiming the service is an un- lower-cost, more casual uberX ser- screen and a brief, 10-minute wait, of buzz on social media when they ployment held steady, at 7.1%, only licensed operation that’s putting vice, whose drivers use their own the sleek Lincoln Town Car arrived launched. slightly lower than the national rate people at risk because the city has- vehicle — think Honda Accord or in style. His driver, Tariq Fares, Uber’s Ondrey said Northeast of 7.3%. n’t inspected Uber cars or licensed Toyota Prius — to cart folks around opened the door and was courte- Ohioans have been clamoring for Moody’s expects the regional Uber drivers. Uber, which operates town. ous as can be. Of course, Magaw the service on social networks and economy to grow by 2.1%, to almost in more than 85 cities worldwide, Lyft’s service more so resembles chose the more luxurious Uber of- downloaded the app well before $200 billion, in 2014. That gets the launched in Columbus late last the uberX option, but its drivers’ fering for his quick ride to grab a the service was available in the GRP to within about $2 billion of its year. cars don fuzzy pink mustaches on sandwich. area. pre-recession high of 2005. Moody’s Cleveland City Councilman Mar- their grilles. In Angelica Gagliardi’s The cost of the roughly one-mile “With the continued desire of reports the regional economy grew tin Keane, chairman of the coun- case, that mustache dresses a sea trip? $12, but Uber picked up the folks to return to the urban core in only 0.4% in 2013, lagging the broad- cil’s aviation and transportation foam green Hyundai Tucson. tab because of an introductory Cleveland and all the fun things er U.S. economy, but Duritsky con- committee, said the city has been Gagliardi is one the founding dri- offer. that they can do around the city siders that an early estimate that will studying the issue for some time. vers of Lyft’s Cleveland operation. For more on Crain’s maiden and surrounding neighborhood, be revised upward as data estimates But now that the services have gone By day, the Parma resident is a Uber voyage, check out Uber will make it easier to do become more solid. live, he expects the city to take a fourth-grade teacher in Cleveland CrainsCleveland.com for a video those,” he said. “It’s going to The report also notes employment closer look. city schools. Lyft’s other local dri- explaining the app. change the way Clevelanders move growth in the service, manufacturing “It’s just something we have to vers include Case Western Reserve around their city.” ■ and construction sectors. ■ 20140414-NEWS--20-NAT-CCI-CL_-- 4/11/2014 2:59 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

Canyon Golf Club in Fountain Hills. campaign that year for STO,” “They drove like an hour and 15 Roche said. Hanlin: New shows begin next month minutes to come down and do a Last year, “Swing Clinic” aired show — I kind of told them it was for the first time, and this year its continued from PAGE 1 time production partners, Willough- The shoots, which used to take 45 minutes,” Hanlin said of Kipnis seven episodes also will be shown The total reach of the 10 Fox by-based BMA Media Group, would one or two days, have turned into and Pestano. in more than 50 million homes. Sports affiliates — which include play a course and show some of the three-, four- and five-day trips. The good-natured Indians play- the New York-based YES Network, nearby area’s best attractions, was To accommodate the show’s ers matched Hanlin’s signature Fox Sports San Diego, Fox Sports expanded in 2013. broader focus, “Tee It Up” changed flashy wardrobe piece for piece. Helping hands Arizona and Sun Sports (Fox’s re- Roche said the show was “tested” its format in 2013. In past years, the Pestano wore a sweater vest over Hanlin’s third SportsTime Ohio gional network in Florida) — spans on four Fox Sports regional net- show would focus on Hanlin and a short-sleeved golf shirt, complete program, “The Golf Zone With Jim- 135 designated market areas. “18 works last year — Sun Sports, Sports co-host Carling Nolan — a 2010 with a bow tie and plaid pants. Kip- my Hanlin,” a Sunday night viewer Holes” and “Swing Clinic” will air South, Arizona and San Diego. The winner of the Golf Channel’s “Big nis was more understated — with a call-in show, will expand from one in 13 of the nation’s 25 largest des- response was so positive that Fox Break” who joined “Tee It Up” in white collared shirt and light plaid to two hours on April 20. His ESPN ignated market areas. elected to more than double the 2011 — playing a golf course’s sig- pants. Cleveland radio show is also two “When Fox bought STO, I was re- program’s reach in 2014 — and give nature hole and feature footage of “They were hilarious,” Hanlin hours, making it difficult to find a ally nervous,” said Hanlin, who also it a jazzed-up new name. the rest of the course. said. “They tried to outdress me.” day during the spring and summer owns three golf courses in Ohio, co- Hanlin said he has been working “Now, we actually show all 18 Hanlin’s attire sometimes over- in which he isn’t on the air. hosts a Saturday morning show on with the “same six or seven guys” — holes of the golf course,” Hanlin shadows what Roche describes as a “And at some point, I have to WKNR-AM, 850, and is the men’s his team, as he calls them — since said. “A lot of the places we’re going down-to-earth personality who show up at my golf courses,” he and women’s golf coach at Notre “Tee It Up” debuted on SportsTime to are large resorts with a lot more won’t hesitate to give a golf tip to said. Dame College in South Euclid. Ohio in 2006. The group, which to shoot than a Little Mountain or a anyone — anywhere. With his schedule even more Hanlin’s worry turned to excite- works on a freelance basis for Fox public golf course in Ohio. These “One thing I don’t think people hectic, Hanlin said he will focus on ment when Mike Roche, director of Sports Ohio, includes friend Dean places have spas and tennis courts understand about Jimmy is how the day-to-day management of Lit- programming for Fox Sports Ohio Cummings, the show’s producer and huge hotels.” good of a teacher he is,” said Roche, tle Mountain, and let the general and SportsTime Ohio, sent a sam- and editor. “When we go to these places,” the Fox Sports Ohio and Sport- managers at StoneWater and Cum- ple of Hanlin’s “Tee It Up” show to Hanlin — in case he wasn’t busy Hanlin said, “we’re really trying to sTime Ohio programming director. berland Trail Golf Club (located in Tim Ivy, director of programming enough — coordinates the travel show the whole experience.” “It’s one thing that he’s on air and Pataskala, 20 miles east of Colum- at Sun Sports. plans, which are much more exten- does things like that, but he hasn’t bus) manage those facilities. “Tim Ivy would ask me to pick up sive than past trips around the Indians get into the swing forgotten where he came from.” When he’s not filming a show, one of his high school football Buckeye State. The owner of Little Said Hanlin, laughing: “I give taking calls on ESPN Cleveland or games,” Roche said of the program- Mountain Country Club in Con- “18 Holes” will debut on Sport- more free golf lessons than any hu- managing one of his courses, Han- ming that is often shared by Fox’s cord and StoneWater Golf Club in sTime Ohio on Wednesday, May 7, man being in the entire world.” lin is spending time with his 9- and regional networks. “So we would do Highland Heights said his goal is to following the station’s broadcast of Roche turned that Hanlin trait 6-year-old sons. Their names — that and I would say, ‘Hey, we have eventually shoot an “18 Holes” the Indians’ 7:05 p.m. game against into yet another program. Hogan and Palmer — are fitting for this golf show.’ ” episode at a golf course in proxim- the Minnesota Twins. The first During the early days of Sport- a father who devotes so much of his Ivy’s reaction, according to ity to each Fox Sports regional net- episode of 2014 will feature Indians sTime Ohio, Roche, in an effort to time to promoting the game and Roche: “Wow, this is really good.” work on which his show appears. All-Star second baseman Jason Kip- promote “Tee It Up,” would take the courses on which it’s played. That probably won’t happen this nis and recently demoted relief Hanlin to a local golf course and “The freelancers (his production New name, more road trips year, Hanlin said, but he and his pitcher Vinnie Pestano, who last ask him to give a brief pointer on team) are great. They do a lot of the crew will be all over the country for month drove from the Tribe’s camera. work,” Hanlin said. “And the same “Tee It Up,” once an all-Ohio pro- the program’s 13-episode run in spring training home in Goodyear, “He had 26 seconds to do a quick for the guys at my golf courses — or gram on which Hanlin and his long- 2014. Ariz., to meet Hanlin at SunRidge golf tip, and that was the promo I’d be in trouble.” ■ COMMERCIAL CONTRACTORS RANKED BY 2013 REVENUE

FTE employees as Company Local revenue New local # of local New corporate # of corporate of 4/1/2014 Address 2013 contracts 2013 projects started contracts 2013 projects started Local Year Rank Phone/Website (millions) (millions) 2013 (millions) 2013 Corporate founded Top local executive

Gilbane Building Co. 1 950 Main Ave., Suite 1410, Cleveland 44113 $304.2 $123.2 7 $3,318.7 319 51 1873 Scott Orr (216) 535-3000/www.gilbaneco.com 2,527 vice president Cleveland Construction Inc. 2 8620 Tyler Blvd., Mentor 44060 $270.2 $39.9 6 $219.2 42 90 1980 Jon D. Small (440) 255-8000/www.clevelandconstruction.com 890 president Turner Construction Co. 3 1422 Euclid Ave., Suite 1400, Cleveland 44115 $229.0 $389.0 78 $9,500.0 1,350 90 1902 Jason Jones (216) 522-1180/www.turnerconstruction.com/cleveland 5,298 general manager Donley's Inc. 4 5430 Warner Road, Cleveland 44125 $204.2 $140.0 33 $188.0 57 70 1892 Malcolm M. Donley (216) 524-6800/www.donleyinc.com 150 president, CEO The Ruhlin Co. 5 6931 Ridge Road, Sharon Center 44274 $199.5 $114.0 20 $168.5 36 180 1915 James L. Ruhlin (330) 239-2800/www.ruhlin.com 370 president, CEO The Austin Co. 6 6095 Parkland Blvd., Cleveland 44124 $137.5 $97.4 6 $201.3 11 72 1878 Michael G. Pierce (440) 544-2600/www.theaustin.com 160 president Geis Construction 7 10020 Aurora Hudson Road, Streetsboro 44241 $127.6 $179.6 82 $229.5 106 77 1967 Gregory Geis (330) 528-3500/www.geis.us 80 CEO Fortney & Weygandt Inc. 8 31269 Bradley Road, North Olmsted 44070 $82.5 $18.0 48 $72.9 156 79 1978 Robert L. Fortney (440) 716-4000/www.fortneyweygandt.com 120 president Shook Construction Co. 9 10245 Brecksville Road, Brecksville 44141 $76.0 $48.5 5 $184.4 43 46 1926 Chris Halapy (440) 838-5400/www.shookconstruction.com 205 executive vice president Panzica Construction Co. 10 739 Beta Drive, Mayfield Village 44143 $57.6 $105.1 28 $105.1 28 75 1956 Anthony M. Panzica (440) 442-4300/www.panzica.com 75 owner, president, CEO Infinity Construction Co. 11 18440 Cranwood Pkwy., Warrensville Heights 44128 $57.6 $37.6 39 $37.6 39 48 1997 Charles A. Izzo (216) 663-3777/www.infinityconstruction.com 48 president Continental Building Systems 12 23240 Chagrin Blvd., Suite 400, Beachwood 44122 $39.0 $24.3 8 $196.1 58 12 1984 Rick Adante (216) 454-2500/www.continental-buildingsystems.com 114 project executive C.T. Taylor 13 5802 Akron-Cleveland Road, Hudson 44236 $31.0 $41.0 36 $41.0 36 25 1971 John Hitchcock (330) 656-9353/www.cttaylor.com 25 president John G. Johnson Construction Co. Marty Weber, president, 14 8360 E. Washington St., Chagrin Falls 44023 $22.0 $22.0 23 $22.0 23 22 1943 owner; Mike Weber, vice (440) 543-9856/www.johngjohnson.com 22 president, owner Drake Construction Co. 15 1545 E. 18th St., Cleveland 44114 $20.3 $25.5 59 $25.5 59 47 1954 Steve Ciuni (216) 664-6500/www.drakeconstructionco.com 47 president Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these RESEARCHED BY Deborah W. Hillyer listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. 20140414-NEWS--21-NAT-CCI-CL_-- 4/11/2014 3:47 PM Page 1

APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 Adjustments: Plan: Firm expects 2014 revenues to exceed last year’s $4.3M continued from PAGE 5 Board forms It takes time Volpe likes to emphasize the continuity of the committee firm, and that its focus on rebuilding the city is the same today as in the past. However, things are very different from 1990 to investigate when he launched the firm with a name similar to his now-prior job, that of “city architect” in the continued from PAGE 8 George Voinovich administration. Proposals are due by May 7, the He used his savings and retirement nest egg suggested start of the audit is June from the Public Employees Retirement System to 2014, the investigation and report launch the business. The first office was in a Vic- preparation are scheduled for June torian home-turned-offices on Prospect Avenue, through December, and the audit re- where Volpe and his associates painted the walls port is due Jan. 5, 2015. themselves. Per the RFP, the PUCO will select The firm did not yet have its first assignment and direct the work of the auditor. The when it opened. Last year, it booked $4.3 million companies will bear the costs of the in gross revenues, a number it expects to exceed audit, bids for which “shall not exceed this year. $200,000,” including cost of travel. This City Architecture is on the third floor of a The commission expects the audit contemporary office building it designed a report to contain the auditor’s opin- decade ago at 3636 Euclid Ave., just a few blocks ion as to the competence, capability from its first and second offices. and autonomy of the management of It just finished construction drawings for a the companies, including their board proposed $36 million expansion of Lubrizol of directors, to operate the public util- Corp. in Eastlake that will add, if it gets final cor- ities in accordance with acceptable porate approval, 90,000 square feet to the chem- JANET CENTURY Paul Volpe, second left, completed a transition in the ownership of his City Architecture firm to, from left, business practices, commission rules, ical and oil-related products company’s head- August Fluker, Alex Pesta and John Wagner. orders and Ohio statutory require- quarters. City Architecture has won more than 200 local and national architecture and other ments, according to the RFP. he said, and it has in its portfolio projects that seek transitions and consulting arrangements “…The companies and affiliates professional awards. It also is overseeing a streetscape project on helped turn around areas as varied as the Coven- because the architecture business was so un- shall provide any and all documents try commercial district in Cleveland Heights. steady for so long. He considers it a change in the or information requested,” the com- Main Street in Painesville and has done a design for the transient marina that the city of Cleveland “We also did a plan that took Detroit Avenue way practitioners approach their business, al- mission stated. “The auditor shall th soon will start building at downtown’s North and West 65 Street,” Pesta said. “After it was though most will continue producing designs as immediately notify staff if there are Coast Harbor. The short-term marina is part of a repositioned as an arts district it became the Gor- long as age allows them to do so. During the any delays in obtaining requested in- lakefront master plan City Architecture did for don Square area.” downturn, senior practitioners frequently set up formation.” the city of Cleveland during the administration Incredible as it sounds today, City Architecture shop on their own because finances were too If any delay is determined to be of former Mayor Jane Campbell. The firm also is started designing townhouses when the feeling tight to plan transitions, he said. unwarranted or unjustified, the working on a planned Marriott Corp. hotel at was that they would not go in Cleveland and in- “This is really the way to do it,” Reder said. “One companies and/or affiliates may be North Park Plaza in Akron next to the 10-year-old ner-ring suburbs. key is to transfer the goodwill of the founder to the subject to legal action, it stated. North Plaza Lofts. “We designed 10,000 housing units. Seventy successors. Another key is to give successors time “This is not like a shopping center where you percent of them were built,” Volpe said. Howev- to develop face time with key clients.” “All I can say ... is that we build it overnight. We do a plan and see it come er, success breeds its own problem: Volpe often Lillian Kuri, director of architecture, urban de- together piece by piece over time, Volpe said. “It says the residential work outshines its work de- sign and sustainable development at the Cleve- are working diligently to takes 10 years. Sometimes 15.” signing office buildings and even factories. land Foundation, said City Architecture’s focus resolve the issues at hand and investment in remaking the city of Cleveland and put them behind us.” distinguishes the firm. Public, private side ‘It’s all of us’ “It’s an important institution and not just a – Gregory Osborne City Architecture has a 50-50 balance of pub- Although it would be easy to paint Volpe’s firm involved in the region,” Kuri said. “What I president and COO, Gas Natural Inc. lic and private work it maintained since the out- ownership transition plans as a case of the baby love about the thought of this is that it’s really im- set. boomers starting to make way for the next gen- portant for Cleveland business as a strategy to re- Moving forward “We didn’t go after public work in 2008 when eration of architects and planners, experts see tain young people and jobs. It’s cool (Volpe) is the commercial market dried up,” Volpe said. that starting to occur for a different reason than providing a runway for them to be successful.” Also revealed in Gas Natural’s an- “We’ve always gone through the process of ap- the principal or principals’ ages. Volpe said making it through the downturn did nual filing is that the board of direc- plying, interviewing and presenting plans to be Hank Reder, an architect-turned-lawyer in shape his desire to plan for the future of the firm. tors on March 26 formed a special hired. It’s very different from the private side Chesterland who focuses on construction litiga- “People may say it’s a Paul Volpe design. The committee comprised of three inde- where someone says, ‘I like your work. You are tion and is a past president of the Cleveland and reality is that it’s all of us,” Volpe said. “They’ll pendent directors to investigate alle- hired.’ We have both.” Ohio chapters of the American Institute of Archi- have the responsibility. I want to work with gations contained in a letter received Pesta said, “We stayed flexible. We see urban tects professional group, said the downturn left clients and do designs.” from one of its shareholders. design as the thread that ties the city together. some senior architects out of work or their nest Asked who calls the shots in case of a business The letter demands that the board The people and how they live are what is impor- egg dwindling because they used it to keep their dispute, all four men answered simultaneously: take legal action to remedy alleged tant to us.” firms afloat. “All of us.” Then Wagner added, “One vote for breaches of fiduciary duties by the A mainstay of the firm is designing streetscapes, Now, he said, there is more of a tendency to everyone.” ■ board and certain of Gas Natural’s ex- ecutive officers in connection with the order and opinion issued by the PUCO on Nov. 13, the company stated. The special committee is to inves- tigate, evaluate and determine the position Gas Natural will take with respect to the letter. Osborne said company executives are precluded from answering ques- tions — among them, who sent the let- ter and what legal action is demanded — given the ongoing investigation. “All I can say … is that we are working diligently to resolve the is- sues at hand and put them behind us,” Osborne wrote. In the meantime, Gas Natural is executing its growth strategy, which includes a targeted growth of its cus- tomer base of 4% to 5% a year. With less than 30% natural gas penetra- tion, Maine and North Carolina are considered Gas Natural’s two emerging markets, Osborne said. He also noted that the company has been investing in its Spelman Pipeline in Ohio to strengthen its foothold in the Utica shale region, and continues to seek acquisitions, including smaller utilities it could help to expand. ■ 20140414-NEWS--22-NAT-CCI-CL_-- 4/11/2014 3:19 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 14 - 20, 2014

ers, the 1,120 dental laboratory tech- haven’t shown us there’s any magic the council, said OSHA has a lot of received on the docket. Public com- nicians and the 2,930 brickmasons to the 50,’” he said. He said he thinks standards, but they seem to only go menting closed in February, and Dustup and blockmasons listed. it will be difficult for employers to after the biggest contractors. If a mea- OSHA wrapped up public hearings The proposal would lower the reach those levels, that the costs sure is going to impose a lot of costs on the proposal on April 4 after continued from PAGE 5 permissible exposure limits, mea- have been “grossly underestimated” onto work sites, it needs to be en- about two and a half weeks of He thinks most meet the current sured in micrograms of silica per cu- and that the science behind the lev- forced across the board, he said. scheduled hearings. levels, but they have to work hard at it. bic meter of air (μg/m3), for crys- el hasn’t been made clear. And some employers think that OSHA is still accepting final com- He’s concerned the proposed regula- talline silica in construction, cost could be significant. ments from those who signed up to tions could devastate foundries finan- maritime and general industries. Focus on enforcement Bradley Belden, director of support testify at the hearings. Typically, OSHA cially, as the plan puts an emphasis on Currently, the limit for quartz, Joseph Brennan, an associate attor- services at the Belden Brick Co. in Can- will then analyze the written com- engineered solutions — such as ven- which OSHA calls the most com- ney with Fisher & Phillips LLP’s Cleve- ton, estimates that the proposed regu- ments and testimony, update its pro- tilation systems — over the use of per- mon type of crystalline silica, is set land office, said that overall, people lations would cost the 425-employee posal and get any necessary govern- sonal safety equipment. In areas at the equivalent of 250 μg/m3 for are asking why the proposal is coming company hundreds of thousands of ment approvals. A timeline for this where respirable crystalline silica cre- the construction and shipyard in- up now. Since 1968, the rate of lung dollars to meet the new regulations. proposal was not available on OSHA’s ation is most prevalent in foundries, dustries and 100 μg/m3 for general diseases related to silica has dropped The company already takes care to re- website, but information on its rule- like a cleaning room where workers industry in an eight-hour work day. by 90%, he said. He questioned duce the levels of crystalline silica em- making process suggests a final deci- are grinding a mold, companies turn Two other types of silica, cristo- whether a stronger standard would ployees are exposed to, using dust col- sion would be at least two years out. to products like respirators, he said. balite and tridymite, have limits that help with the remaining cases or if lection methods to keep its plants in While OSHA estimates that the “It’s not pristine,” Murray said of are half of that. The proposed rule stronger enforcement of the current Sugarcreek clean and by having em- cost could be significant overall at the foundry industry, “and it never drastically would cut the allowable standard is what’s needed. ployees use dust masks in the areas $637 million annually, the majority will be.” limit to 50 μg/m3 for all of the above The enforcement question is crit- where the methods can’t be used. of which would be incurred by con- Crystalline silica can be found in groups and materials, averaged across ical. Ken Kudela, director for the “We just don’t think it’s going to struction-related companies, it ex- processes used in a variety of indus- an eight-hour day. That’s the lowest Ohio-Kentucky Administrative Dis- be a cost-effective solution to a pects that average employers would tries, from construction to metal level that OSHA believes is technolog- trict Council of Bricklayers and Al- problem we don’t even think exists,” spend just about $1,242 each year to casting to concrete, brick and glass ically feasible. Companies would be lied Craftworkers in Hudson, be- Belden said. meet the regulations. production, all of which would be required to begin monitoring the lev- lieves a stricter standard is When the dust settles Murray of the Ohio Cast Metal As- subject to the proposal. els once they reached 25 μg/m3. necessary. He knows it will add ex- sociation doesn’t agree with those es- According to a Bureau of Labor Vincent Norwillo, a partner with tra costs or burdens to contractors, Both the Ohio Cast Metals Associ- timates. While he declined to name Statistics report from May 2013, Gonzalez, Saggio & Harlan LLP in but said something needs to be ation and Belden Brick submitted the company, he shared that a large, Ohio had 161,190 construction em- Cleveland, said OSHA and employ- done to stem the deaths from dis- formal comments to the federal gov- local foundry had spent about $1 mil- ployees and 485,370 production ers and contractors want to protect eases like silicosis. ernment sharing their concerns on lion to meet the current guidelines. workers, although not all would be workers, but he’s heard concerns But even Kudela notes that en- the proposal. “This thousand dollar number is affected. Some that could be are the about the proposed levels. forcement of the levels is the key. Fred They’re not alone. As of April 9, infuriating because it’s so absurd,” 1,790 foundry mold and coremak- “Employers are saying, ‘You Hubbard Sr., secretary treasurer for there were close to 2,000 comments he said. ■ REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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APRIL 14 - 20, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Investor relations vet Mabee more corporate work,” Falls said. “They would and that the program gives the students APRIL 7 - 13 like more in-depth strategy and somebody making the kits real-world experience in the is definitely back in the game who has been on the corporate side and manufacturing industry. The big story: University Circle Inc. said it’s ■ Last July, Keith Mabee retired from Dix & understands what it’s like. So Keith … is a — Rachel Abbey McCafferty working with prominent Cleveland-area devel- Eaton. “It was just time to write the next tremendous, tremendous gain for us.” opers Mitchell Schneider and Sam Petros to chapter,” he said. Also last week, Falls Communications Dollar Bank invests in build a $130 million residential high-rise on a site Mabee started penning that chapter last signed a lease that adds 5,000 square feet to occupied partially by the Children’s Museum of week: He’s now group president for corporate its existing 21,000, Falls said. educated homebuyers Cleveland. The project is dubbed “One Univer- communications and investor relations for — Michelle Park Lazette ■ In its 15th year, a Dollar Bank workshop sity Circle.” Preliminary plans call for a building Falls Communications in Cleveland. that aims to inform mothers who seek mort- of 25 to 28 stories with about 280 units ranging Mabee had worked for Kids use kits to help gages drew its largest crowd in Cleveland in size from 720 square feet to a 4,200 square foot Dix & Eaton since 1997. this March, Dollar Bank executives reported penthouse. Work is expected to begin in summer Prior to that, he did advance 3D printing last week. 2015 on the project. University Circle Inc. is communications and/or ■ Applied Systems & Technology Transfer Some 300 people signed up for the Mort- working with the museum to identify another investor relations for a LLC in Youngstown, which calls itself AST2, gages for Mothers program at the Wolstein site for the institution. trio of companies over a wants schools to be able to have access to Center at Cleveland State University on 15-year span. affordable, easy-to-fix 3D printers. March 29, said Dorothy E. Curtis, assistant Around the block: Downtown Cleveland’s It’s particularly inter- Enter the INVENT3D printer, a kit that vice president for community development esting to deliver such students can assemble on their own. for Dollar Bank. The event is offered annu- 14-floor Hampton Inn changed hands on April 7 Mabee for $19.8 million, according to Cuyahoga County services today, he said. According to the company’s news release ally in both Cleveland and Pittsburgh, where land records. The buyer is an investor group “At the board level, stocks are valued more about the new product, the assembled the mutual bank is headquartered. called “Black Sapphire C Cleveland 2014 Inc.” and more on how a company’s governed printers are designed to work with AST2’s At this year’s workshop, Curtis said 176 that was incorporated Jan. 9 in Wilmington, Del. and how they execute not only business but STEM education program. participants enrolled in Dollar Bank’s Credit The seller was 1460 Ninth Street Associates Lim- their relationships with all stakeholders,” he Jack Scott, president of AST2, said the first Enhancement Program, a free service that ited Partnership, an affiliate of Raleigh, N.C.- said. “Shareholder activism is picking up kits are slated for use in summer camps in analyzes first-time homebuyers’ credit and based Concord Hospitality Enterprises Inc., a again. I think it’s going to be a heady two or Texas and Pennsylvania. sets up a strategy for improving their credit. hotel development, ownership and manage- three years now. But it’s not just the students getting their “We are trying to make sure that we ment firm that was based in Cleveland until “It’s an exciting time for somebody like hands on such a kit who are learning from secure the communities in which we serve 2003. The 194-room hotel is on the northwest me to hopefully become a trusted adviser to the experience. The kits themselves are being with well-educated homebuyers,” Curtis corner of Superior Avenue and East Ninth Street. boards and senior management teams that made by students in an after-school program said. “The program is not just to get an indi- are going to have to face into this environ- at Choffin Career & Technical Center in the vidual in a home. We want to make sure that Sharing expertise: The Cleveland Clinic’s ment,” Mabee added. Youngstown city school district. Scott said they stay in the home.” Bariatric and Metabolic Institute will lend its Mabee was president of Dix & Eaton for four students are using 3D printers, CNC The workshop also is not just for mothers, expertise to Doctors Hospital at Renaissance, a more than a decade, then vice chairman machines and laser-cutting machines to Curtis noted. A part of Dollar Bank’s Com- 530-bed physician-owned health system in and finally a consultant through July 2013. It make the parts in the kits and are getting munity Reinvestment Act programming, the Edinburg, Texas. The affiliation is the first for was Rob Falls, president and CEO of Falls paid $13.50 an hour for their work. seminar is open to men and women. It’s tar- the Clinic’s bariatric program. The Clinic’s Communications, who approached him Joe Meranto, director of career technical geted to single mothers because “we find renowned heart and vascular program has affil- about returning to full-time work. and adult education at Choffin, said the that … they are the ones who buy homes the iated with 22 programs across the country, with “Our clients really are wanting more and collaboration has been a “good marriage” least,” Curtis said. — Michelle Park Lazette the most recent being Susquehanna Health, a four-hospital system in north central Pennsylva- nia. In these arrangements, the Clinic works as a WHAT’S NEW BEST OF THE BLOGS consultant of sorts and collaborates with part- of a selected group of people with all others nering institutions on complex medical cases COMPANY: Surgical Theater LLC, Excerpts from recent blog entries on and shares its research, care protocols and other CrainsCleveland.com. in that location. The more evenly distributed tools. Cleveland the wealthy are across tracts compared to the PRODCUT: Surgical Navigation Do tell rest of the population, the lower the level of Quite a jump: It turns out the Maltz family segregation (the Dissimilarity Index ranges Advanced Platform ■ Big-data companies know a lot about was more generous than originally believed. from 0 to 1, where 0 reflects no segregation customers, but they’d like to know even Milton Maltz and his wife, Tamar, announced Surgical Theater LLC and 1 reflects complete segregation).” more. That’s the thrust of a Wall Street Jour- April 9 that they and their family’s foundation says the Surgical Tables in the analysis show the 10 large nal story that included information from a contributed $30 million in total toward Case Navigation Advanced metro areas — those with 1 million or more Platform, or SNAP, Cleveland Clinic spinoff, Explorys. people — where the wealthy (defined as Western Reserve University’s $64 million per- The Journal said big-data firms nation- forming arts center project. The Maltz Founda- “integrates with oper- households with annual income of $200,000 ating room technology wide “already collect loads of information or more) are the most and least segregated tion originally agreed to commit only $12 million about their customers and suppliers — but toward the project of transforming the historic to provide advanced 3D from other economic groups. capabilities and augmented that has only whet their appetites for even Cleveland-Elyria-Mentor ranked No. 5 on Temple-Tifereth Israel off University Circle into more. Some retailers want to see what cus- reality, allowing surgeons the list of most geographically segregated a state-of-the art performing arts space. tomers buy from other stores, for instance, to enhance their surgery metros, with a Dissimilarity Index of 0.56. while health providers want a real-time performance.” No. 1 on that list is Memphis, at 0.582. Look- Next in line: Progressive Corp. said chief rundown on their patients’ vital stats to get financial officer Brian Domeck intends to retire SNAP provides neurosur- ing at all the United States’ 350-plus metros, geons “unique virtual-reality an early warning about potential health after the company’s annual meeting May 2015 Cleveland is No. 13 overall in income isola- guidance to determine the problems.” and will be succeeded by John Sauerland, who tion, and Akron is No. 18. safest and most efficient The section on Explorys, which creates currently is president of the auto insurer’s pathway to remove cerebral tumors and treat software for health care companies to store, Real progress Personal Lines Group. Domeck will continue to access and make sense of their data, was vascular anomalies,” according to Surgical ■ serve as CFO through early 2015, when the May- headlined, “Taking Patients’ Pulse.” The number of premature births and chil- Theater. dren’s hospital visits for asthma “dropped field Village-based company’s 2014 financial The product, currently being considered statements will be completed and certified. significantly in parts of the United States, for Food and Drug Administration clearance, Canada, and Europe barely a year after they was on display for the first time last week at th enacted smoking bans,” The New York On your radar screen: The 39 Cleveland the American Association of Neurological Times reported in a story that quoted a International Film Festival presented by Dollar Surgeons’ annual meeting in San Francisco. Bank will be held March 18 -29, 2015, at Tower SNAP enables surgeons to “execute their Explorys “holds a huge trove of clinical, MetroHealth doctor. City Cinemas and select neighborhood screen- surgery plan while in the operating room financial and operational information — An analysis reported in The Lancet “com- ing locations. The film festival has grown by utilizing a patient’s CT/MRI scans, allowing but would like access to data about patients bined the results of 11 studies encompass- 178% since 2003, and it welcomed 97,804 film enhanced accuracy and efficiency,” according at home, such as their current blood-sugar ing more than 2.5 million births and nearly enthusiasts this year. More than 350 films origi- to the company. It also provides features that and oxygen levels, weight, heart rates and 250,000 asthma attacks,” The Times said. nating from more than 60 countries are show- allow surgeons to see behind arteries and respiratory health,” according to the story. “Experts called it the best evidence to date cased during the annual spring arts tradition. other critical structures. Set apart that legislation creating smoke-free public This is the festival’s 38th year. Clearance by the FDA is expected mid- places and workplaces improves children’s year, Surgical Theater says. ■ Cleveland and Akron are among the U.S. health, even in the womb.” Talk about it: Case Western Reserve Univer- Dr. Joshua Bederson, chairman of the cities where “the rich are most segregated The results are “very impressive,” said Dr. sity announced it will assume management of neurosurgery department at Mount Sinai from everyone else,” according to an analysis Brian Mercer, chairman of obstetrics and Town Hall of Cleveland, which bills itself as the Hospital in New York City, who was involved on TheAtlanticCities.com. gynecology at MetroHealth Medical Center, nation’s longest consecutive-running speaker in SNAP’s design, said its augmented reality Richard Florida wrote the piece based on who noted that half a million American series. The programming will move from Play- features “allow for accuracy to be maintained his Martin Prosperity Institute colleague babies are born prematurely each year. houseSquare to Case Western Reserve’s new throughout the procedure and for simulation Charlotta Mellander’s use of an “index of “If you could prevent 10 percent, you’d Tinkham Veale University Center, which opens of all phases of complex surgeries. dissimilarity” developed by sociologists prevent nearly 50,000 premature babies in in August. For information, visit Douglas Massey and Nancy Denton. The the U.S. alone each year,” said Mercer, who www.surgicaltheater.net. index, he wrote, “compares the distribution was not involved in the study. 20140414-NEWS--24-NAT-CCI-CL_-- 4/10/2014 2:03 PM Page 1