Something to Shout About

20130819-NEWS--21-NAT-CCI-CL_-- 8/16/2013 2:43 PM Page 1

FOTOLIA By MICHELLE PARK [email protected] SOMETHING TO t’s a ban that has kept them tight-lipped for decades. But, thanks to a vote last month, hedge funds, private equity SHOUT ABOUT Ifunds and other issuers of certain securities soon can advertise their fundraising efforts to the masses. Private equity firms soon can pitch away The ban lifts Sept. 23, and attorney Howard Bobrow expects some funds as ban on their advertising ends Sept. 23 to jump into action that very day. See SHOUT Page 9

“It’s as if the whole 20th century bypassed the fundraising industry. So now, it’s being brought into the present.” Charles Stack, CEO and founder, FlashStarts Inc.

33 SPECIAL SECTION 7 LEGAL AFFAIRS

74470 83781 seek to cut legal costs ■ Pages 11-17 by Crain Communications Inc. Vol. 34, No. 33 0 PLUS: ADVISER ■ WELLNESS PROGRAMS ■ & MORE 20130819-NEWS--22-NAT-CCI-CL_-- 8/16/2013 2:43 PM Page 1

$ ,

YOUR WEALTH IS ABOUT MORE THAN DOLLARS AND CENTS. IT’S ALSO ABOUT KEEPING THE FAMILY BUSINESS IN THE FAMILY.

That’s why Fifth Third Private Bank Advisors want to know about more than just your assets. Asking about your family, passions and the legacy you want to create helps us design a personalized plan speciﬁ cally tailored to accomplish your goals.

Put our more than 100 years of curiosity to work for you. And the family business. Learn more at 53.com/legacy.

Deposit and credit products provided by Fifth Third Bank. Member FDIC. Equal Housing Lender.

Fifth Third Private Bank is a division of Fifth Third Bank offering banking, investment and insurance products and services. Fifth Third Bancorp provides access to investments and investment services through various subsidiaries, including Fifth Third Securities. Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a registered broker-dealer and registered investment advisor. Registration does not imply a certain level of skill or training. Investments, investment services and insurance:

Are Not FDIC Insured - Offer No Bank Guarantee - May Lose Value Are Not Insured By Any Federal Government Agency - Are Not A Deposit

Insurance products made available through Fifth Third Insurance Agency, Inc. © Fifth Third Bank 2013. 20130819-NEWS--1-NAT-CCI-CL_-- 8/16/2013 2:39 PM Page 1

$2.00/AUGUST 19 - 25, 2013

Media outlets wage war vs. vulnerable PD start of its new e-edition have giv- TV, newspapers en other media organizations a chance to compete in new ways as see opportunity they cross over into each other’s traditional turf. in daily’s shift to It’s part of what the media industry calls “convergence,” or the digital strategy practice of presenting content that used to be found on a single By JAY MILLER delivery system — whether print, [email protected] broadcasting or digital — over multiple platforms, including They may only be small, early smart phones and social media. skirmishes, but Northeast Ohio Because of their greater interac- media are attacking the region’s tion with news consumers than dominant but evolving daily newspapers over the course of a newspaper on land, over the air day, television stations can use and online. their well-watched news shows to The shifting emphasis of Ad- drive viewers to beefed-up web- vance Publications Inc.’s Cleve- sites as they compete with cleveland operations — from the print- land.com, now Advance’s flag- ed and home-delivered Plain ship, for readers moving to online Dealer to electronic delivery via from print. cleveland.com — and the rocky See MEDIA Page 18 NFL deal opens door for more at Veritix “We’ve Digital ticketing all sort company’s pact of grown out of FOTOLIA with Lions lessens this By MICHELLE PARK Ticketmaster’s grip space.” [email protected] – Samuel By KEVIN KLEPS Gerace, CEO, Veritix, on the SOMETHING TO t’s a ban that has kept them [email protected] offices his company shares tight-lipped for decades. But, with Bizdom in the Chase thanks to a vote last month, In 2012, as it closed its fifth year Financial Tower hedge funds, private equity in business, the digital ticketing Ifunds and other issuers of certain se- platform of Cleveland-based Ver- was formed in 2008 after Flash SHOUT ABOUT Seats, an electronic ticketing curities soon can advertise their itix was used to sell 17 million tick- fundraising efforts to the masses. ets valued at $901 million. system launched by Cleveland Private equity firms soon can pitch away The ban lifts Sept. 23, and attorney In the eight months that fol- Cavaliers owner Dan Gilbert in Howard Bobrow expects some funds lowed, Veritix made history at the 2006, acquired Vertical Alliance — as ban on their advertising ends Sept. 23 to jump into action that very day. NCAA men’s Final Four basketball will leave its headquarters in See SHOUT Page 9 tournament and joined an even Chase Financial Tower in more exclusive group in the tick- downtown Cleveland for more eting world — a seller of tickets for space at an undetermined down- “It’s as if the whole 20th century bypassed the fundraising industry. So now, an NFL franchise. town location. it’s being brought into the present.” Charles Stack, CEO and founder, FlashStarts Inc. Soon, the company — which See VERITIX Page 6

ARCHITECTURE

33 SPECIAL SECTION 7 LEGAL AFFAIRS THE VIEW: BUSY

74470 83781 seek to cut legal costs ■ Pages 11-17 by Crain Communications Inc. plenty of work, but much of it is Vol. 34, No. 33 0 PLUS: ADVISER ■ WELLNESS PROGRAMS ■ & MORE outside the region ■ Page 3 20130819-NEWS--2-NAT-CCI-CL_-- 8/16/2013 1:41 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013 COMING NEXT WEEK A NATION OF QUITTERS More Americans are quitting their jobs — and that’s a good sign for the Plotting your next step economy. The government reports that in June, the ratio of “quits per layoffs Crain’s will publish its second and discharges” was 1.4. “Quits” are voluntary separations initiated by 700 W. St. Clair Ave., Suite 310, employees. They tend to rise with an improving economy — it illustrates Cleveland, OH 44113-1230 annual MBA Guide, which people are more confident they can find jobs — and fall with a faltering Phone: (216) 522-1383 breaks down the types of Master economy. Layoffs and discharges, by contrast, represent involuntary Fax: (216) 694-4264 of Business Administration separations. Here’s data on quits for the past six Junes: www.crainscleveland.com Publisher/editorial director: programs available in the Buckeye Month Quits Layoffs/discharges Ratio Brian D. Tucker ([email protected]) State, along with program Associate publisher/editorial: John Campanelli ([email protected]) highlights and contact information June 2013 2,160,000 1,537,000 1.4 Editor: Mark Dodosh ([email protected]) for the schools. June 2012 2,148,000 1,786,000 1.2 Managing editor: Scott Suttell ([email protected]) June 2011 1,864,000 1,774,000 1.1 Sections editor: REGULAR FEATURES Amy Ann Stoessel ([email protected]) June 2010 1,891,000 1,995,000 0.9 Assistant editor: Kevin Kleps ([email protected]) Big Issue ...... 8 Going Places ...... 10 June 2009 1,742,000 2,135,000 0.8 Sports Classified ...... 20 Reporters’ Notebook....21 Senior reporter: June 2008 2,645,000 2,009,000 1.3 Stan Bullard ([email protected]) Editorial ...... 8 The Week ...... 21 Real estate and construction From the Publisher ...... 8 What’s New...... 21 ■ Source: U.S. Bureau of Labor Statistics; www.bls.gov Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance 25 Rachel Abbey McCafferty ([email protected]) Manufacturing and energy Research editor: SEPT Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams AM PM Marketing director: 7:30 - 3:00 Lori Yannucci Grim ([email protected]) Executive Caterers Events Manager/Promotions & Sponsor our experts you Relations: Let help at Landerhaven Jessica Snyder ([email protected]) Advertising director: 6111 Landerhaven Dr. Nicole Mastrangelo ([email protected]) Senior account executive: Mayfield Heights Adam Mandell ([email protected]) make the right decisions… Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) PURCHASE John Banks ([email protected]) 7:30-8:00AM – Networking / Registration / Breakfast Sales and marketing assistant: Michelle Sustar ([email protected]) 8:00-9:00AM – Morning Keynote Address; J.B. Silvers, Ph.D. TICKETS Renowned health care finance expert and professor at Case Western Reserve University Office coordinator: CrainsCleveland.com/HCSummit Denise Donaldson ([email protected]) “Transitioning form an industrial to a consumer model of health care” Digital strategy and development manager: Presented by: Stephen Herron ([email protected]) 9:00AM -10:15AM - Panel 1 Web/Print production director: Craig L. Mackey ([email protected]) “Engagement strategies to combat uncertainty and encourage good health” Production assistant/video editor: t%S3POBME"EBNT Regional Chief of Internal Medicine, Kaiser Permanente Ohio Steven Bennett ([email protected]) Graphic designer: t4BOEZ$IPDIPMB Senior VP, Aon Hewitt, Health and Benefits Consulting Lauren M. Rafferty ([email protected]) t+PIO+FTTFS VP of Provider Engagement Strategy, WellPoint Inc. Premier sponsor: Billing: Susan Jaranowski, 313-446-6024 t.JLF.JUDIFMM VP of Business Development, Bravo Wellness ([email protected]) Credit: Todd Masura, 313-446-6097 10:15AM - 11:30AM- Panel 2 ([email protected]) “Reform 101: Changes your businesses must make now before the next wave hits” Crain Communications Inc. Keith E. Crain: Chairman t4UFQIFO1#POE Partner, Brouse McDowell Rance Crain: President t1BVM/BDIUXFZ Vice President, Todd Associates Moderator sponsor: Merrilee Crain: Secretary Mary Kay Crain: Treasurer t/BODZ1BUPO Chief Public Affairs Officer, Kaiser Permanente of Ohio William A. Morrow: Executive vice president/operations t+FòSFZ%4NJUI Partner, Fisher & Phillips Chris Crain: t+PIO5FFUFS Managing Director, KPMG, and former Acting Chief Information Officer Executive Vice President, Director of Strategic Operations for the U.S. Department of Health and Human Services Major sponsors: Brian D. Tucker: Vice president Paul Dalpiaz: Chief Information Officer Dave Kamis: 11:30AM-12 Noon – Break Vice president/production & manufacturing Mary Kramer: Group publisher

G.D. Crain Jr. 12:00-1:30PM – Luncheon & Keynote Address Founder (1885-1973) Mrs. G.D. Crain Jr. Ohio Lt. Governor Mary Taylor, Director of the Ohio Department of Insurance Chairman (1911-1996) “How the Affordable Care Act will impact Ohio businesses and consumers” Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For 1:30-2:45PM - Panel 3 subscription information and delivery concerns send correspondence to Audience Development Department, “Mission Impossible? Retain talent and contain healthcare costs” Supported by: Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- t1BVM/$BUBOJB Senior VP and Branch Manager, Oswald Cos. [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other t#PC$IFTT VP of HR at ACRT locations), or fax 313-446-6777. President, Employee Benefits International Inc. Reprints: Call 1-800-290-5460 Ext. 125 t+JN%VTUJO Audit Bureau t+BOFU,FOEBMM8IJUF Founder and President of Berkshire Group Inc. of Circulation

2:45-3:00PM – Closing Remarks 20130819-NEWS--3-NAT-CCI-CL_-- 8/16/2013 3:01 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Cleveland puts industrial land on block

Tracey sale, which it would split with the Cresco brokerage gets exclusive contract to deal Midland Nichols, Cleve- buyer’s broker, if the brokerage land director of generates a deal, and 7% if a deal and Trinity sites that have cost city millions to clean up economic de- results from a city-referred lead. velopment, said Besides the brokerage communi- By STAN BULLARD millions in government funds task is to find buyers for all or part the city selected ty’s ability to identify companies in [email protected] spent on brownfield cleanups. of the 23-acre former Midland Steel Cresco from the market for land, Ms. Nichols Mayor Frank Jackson’s econom- site, now dubbed Midland Com- three brokerage said the city outsourced the work Industrial and commercial land ic development department has merce Park, at 10615 Madison Ave., firms that vied Jackson because it wants to focus its staff on in two, new West Side industrial awarded exclusive sales listing as- and six acres at what’s called the for the work. closing deals with businesses rather parks in Cleveland is hitting the signments to the Cresco real estate Trinity Development Site at 9203 She said the city agreed to pay than hunting prospective buyers. market after a long odyssey and brokerage to sell the properties. Its Detroit Ave. Cresco a 10% commission on a See PARKS Page 5 INSIGHT New era soon will begin for Great Day Home improvement company’s big store in Broadview Hts. to serve as model By RACHEL ABBEY McCAFFERTY [email protected]

Great Day Improvements LLC plans to open a 28,000-square-foot store in Broadview Heights by next spring, which would continue the growth the diversified home improvement company has seen since it was formed three-and-a-half years ago. The company plans to revamp the former Andy Sims Buick dealership on Broadview Road in Broadview Heights. It will turn 6,000 square feet CONTRIBUTED PHOTO into a showroom that sells products Scott Maloney, president of mbi | k2m Architecture Inc., says his Cleveland firm had “an insane 2012.” including Stanek windows and Patio Enclosures sunrooms and the rest into a service center, said Steve White, managing director of Great Day. DRAWING FROM EVERYWHERE The new location will need 40 to 50 employees, Mr. White said, many By STAN BULLARD insane 2012,” Mr. Maloney said, and the firm has of whom come from the company’s Local architects are [email protected] grown to 24 employees in Cleveland as it added 10 in Macedonia plant and its Cuyahoga the last 18 months. Another 16 are spread throughout Heights store. The 4,000-square-foot keeping busy, but cott Maloney, president of mbi | k2m Architec- its Baltimore, Charlotte and Key West, Fla., offices. Cuyahoga Heights location, which ture Inc., recently moved six members of his in- Building a firm with 40 associates — about six of was a Stanek store, will close. The much of their work terior design staff into the last empty space in them registered architects with several preparing for new store will carry the Great Day a building his firm bought in 2009 in Cleve- exams this year — has its price. Mr. Maloney spends Improvements name, reflecting a re- is done outside of Sland’s Ohio City neighborhood. He worries he has just most of his time traveling as he mines for architec- branding effort the company has im- two empty seats available for more hires. ture-related work in different regions. plemented throughout its footprint. Northeast Ohio Billings at mbi | k2m’s rose dramatically during “an See DRAWING Page 20 See GREAT Page 18 THE WEEK IN QUOTES “When you find these “If you look at the big picture, I “The concept with mediation “I was working in a job inefficiencies that you are think you have an owner in Dan is, let’s get all of the that was physically, successfully exploiting … to the Gilbert who got into pro sports important players to the emotionally and benefit of your investors, it’s not and said, ‘Hey, why do I have to table at a much, much mentally exhausting. as though you want to work with Ticketmaster? Why earlier stage. The popularity … and I realized there broadcast what those can’t I do it myself?’ ” of it, I think, has become was no way I was inefficiencies are to the general — Jim Kahler, executive director of the greater because the cost of going to be able to do Center for Sports Administration at Ohio public so that others can University’s College of Business and former litigation has become greater.” what I was doing replicate what you’re doing.” Cleveland Cavaliers executive. Page One — Mark Wachter, chair of the when I was 40.” alternative dispute resolution section for — John Micklitsch, senior vice president and — Patricia Poole, a registered the Cleveland Metropolitan Bar director of the private client group of Ancora nurse who now is a partner Association. Page 11 Advisors LLC. Page One at BakerHostetler. Page 13 20130819-NEWS--4-NAT-CCI-CL_-- 8/16/2013 3:09 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013

“ We are out of town investors who acquired an Steel market cools empty 700,000 square foot warehouse. Terry found “Shipments are expected dustry to see significant growth un- Timken, U.S. Steel, to increase to support til 2014. Mr. Mian said he expects every tenant and leased the steel industry to improve in the entire building for us. others contend with anticipated drilling coming quarters, “but not material- activity and average ly.” We would recommend weakening demand realized prices are Phil Gibbs, an equity research him to anyone with a analyst at KeyBanc Capital Markets By RACHEL ABBEY McCAFFERTY projected to be Inc., also mentioned the lagging challenging assignment. ” [email protected] comparable.” commercial construction industry as a big problem for the steel indus- It hasn’t been a hot market for – John Surma, chairman and Bruce Levine CEO, U.S. Steel try. It’s one of the one of the most Equity Industrial Properties steelmakers so far this year, and an- important markets and the one that alysts don’t expect the story to be forecast by 1%, citing a weak start to has been lagging the most in terms much different in the second half of the year and government cuts. It of improvement, he said. 17000 ROCKSIDE ROAD 2013 amid sluggish demand in key also cited weaker steel consump- Mr. Gibbs also said while steel end markets and steelmaking over- MAPLE HEIGHTS, OH Visit tion growth due to caution from demand indicates the market is im- TerryCoyne.com capacity worldwide. distributors and softness in the en- proving a bit, there is still a global 700,000 square feet. Fully leased to four tenants Steelmakers with local ties ergy and manufacturing markets, excess steelmaking capacity, espe- Or Call Terry at haven’t had anything to shout all found by Newmark Grubb Knight Frank. 216.453.3001 due in part to lower export demand. cially in China and Europe, which about to this point. For example, Justin Dammel, an equity re- gives investors pause. He said the Canton-based Timken Co.’s overall 1350 Euclid Ave., Suite 300 search analyst for Fifth Third Bank, second half of the year is typically Cleveland, Ohio 44115 sales declined 16% in the second said analyst expectations for 2013 weaker for steel, but he expects a quarter compared with the like pe- have been steadily dropping since slight improvement this year. Many riod last year, and its steel sales fell the year began. There was a down- in the supply chain drew from their 29%. The company blamed reward trend on pricing due to a gen- inventory in the first half of 2013 duced shipments to the industrial erally sluggish economy and a drop rather than buy steel, and their in- and oil and gas markets for the lat- in demand in the Chinese market, ventory levels are becoming low, ter decline. he said. The automotive and oil and Mr. Gibbs said. Pittsburgh-based U.S. Steel gas industries did well, and some Andrew Lane, an equity analyst Corp., with operations in Lorain, companies expected improvement at Morningstar Inc., said he didn’t posted a loss of $78 million in the in nonresidential construction, too. see a strong “near-term catalyst” second quarter compared to net in- “But strong growth just has not that would affect steel sales, but he come of $101 million in the second materialized,” Mr. Dammel said. did note one possible trend worth quarter of 2012. And Luxembourg- And that’s significant, because watching. Some domestic steel based ArcelorMittal, which oper- the residential and nonresidential companies have signed a petition ates a Cleveland plant, reported a construction industries make up a to keep foreign companies from il- second-quarter loss of $780 million “decent chunk” of the end-use steel legally dumping tubular goods, a versus a profit of $1.02 billion in last market — about 40%, Mr. Dammel practice that dramatically drives year’s second quarter and has low- said. down prices. ered its earnings guidance for the Sheraz Mian, director of research Also, in the case of U.S. Steel, full year because of weak demand at Zacks Investment Research, said chairman and CEO John Surma and lower-than-expected raw ma- the nonresidential construction said last month the company ex- terial prices. market has been the topic of con- pects third-quarter results for its Representatives of U.S. Steel and versation on analyst calls. Mr. Mian Tubular segment to improve com- Timken wouldn’t comment on the tracks the performance of S&P 500 pared to the second quarter. That’s results. A representative of Arcelor- companies, which includes four in a positive indication for the compa- Mittal sent brief comments by the steel industry: Nucor Corp., ny’s two pipe mills in Lorain that email, noting that for the United Cliffs Natural Resources, U.S. Steel supply the oil and gas market. States, the automotive industry is and Allegheny Technologies Inc. “Shipments are expected to in- “robust” and that the construction Mr. Mian said the consensus ex- crease to support anticipated industry, especially residential con- pectation is that the nonresidential drilling activity and average real- struction, was improving. The com- construction market will improve, ized prices are projected to be com- http://training.hurricanelabs.com/check-point-training/ pany did lower its demand growth but he doesn’t expect the steel in- parable,” Mr. Surma said. ■ NE Ohio grows as base for HQs

“Good old John D. was one of the Team NEO report finds region outpaces first, when he started buying up re- fineries,” Mr. Waltermire said. “All nation in attracting corporate outposts of a sudden he had far-flung operations and he had to figure out how By JAY MILLER The growth in the number of the to run that from Cleveland.” [email protected] region’s workers who manage busi- Looking at the performance of ness and other enterprise is valu- the region’s economy, Team NEO is Though Northeast Ohio has lost able to the region. While manage- reporting a slowdown in economic many of its marquee corporations, ment workers represent only 3% of growth. the region continues to be an at- the region’s work force, they ac- AIR CHARTER SERVICE Total employment in the region tractive place from which to run a count for 6% of all wages paid. AIRCRAFT MANAGEMENT rose by only 3,000 jobs from the spread-out business. Jenny Febbo, Team NEO’s vice second quarter of 2012 to the like A review by Team NEO, the re- president for marketing and com- gional business attraction nonprof- munications, said those operations quarter in 2013, though the unem- it, found employment at corporate, sustain “a lot of great support ser- ployment rate, at 7.1%, was un- divisional and administrative head- vices here. The financial services changed from second quarter of quarters in 18 counties in Northeast and the accounting firms and the 2012. Ohio has grown by nearly 160% legal firms have grown up around Team NEO’s economic consul- from 1990 to 2013, compared with a the headquarters we have here.” tant, Moody’s economy.com, pro- national average of 22% growth. Tom Waltermire, CEO of Team jects the gross regional product of That analysis was a part of Team NEO, noted that John D. Rocke- Northeast Ohio to grow by 0.9% in NEO’s second-quarter economic feller, through his Cleveland-based 2013. review, which reported only mod- Standard Oil Co., was one of the Jacob Duritsky, Team NEO’s Cleveland’s Premier Air Charter Service est growth in economic activity in first of great business accumulators managing director of research, not- the April-through-June period of and helped create the need for ed that the region has seen 12 con- Serving Northeast Ohio with four Beechjets and a Hawker ■ 2013. management talent. secutive quarters of growth.

Volume 34, Number 33 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth www.FlySkyQuest.com • 216-362-9904 week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20130819-NEWS--5-NAT-CCI-CL_-- 8/16/2013 2:34 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Parks: City spent more than $7.7 million cleaning up the sites

continued from PAGE 3 An intermediary also lets the city avoid spending time with parties that might not have the funds to pay for the sites or fit the city’s preferred uses for the land. George Pofok, a Cresco senior vice president, said he and Cresco principal Kevin Kel- ly will run the assignment, but they will com- bine their efforts with other brokers at the firm, which derives more than 60% of its revenue from industrial property transactions. Cresco also will promote the sites through its network affiliation with the huge Cushman & Wakefield brokerage. Mr. Pofok expects the firm will find its buyers in the industrial areas of surrounding neighborhoods, which are areas Cresco knows well. Asked how large or how many buildings the sites might accommodate, Ms. Nichols said the important thing is identifying what buyers want. She said she believes the timing is right to market the property after the economic downturn because industrial vacancy in the region is just 10%, and manufacturers once again are developing a taste for building. Ms. Nichols said she sees the Midland site The 23-acre as a potential mix of light industrial users with former warehouses, while Trinity’s small size will Midland Steel constrain large-truck access. site, located Mr. Pofok said most of the likely prospects at 10615 are manufacturers that need smaller build- Madison Ave. ings rather than the largest ones the sites in Cleveland, could accommodate. In the case of the larger has been put Midland site, it could accommodate a up for sale by 200,000-square-foot user, but Mr. Pofok said the city. a combination of users that need buildings of STAN BULLARD 10,000 to 50,000 square feet is more likely. heavily residential and commercial area. $70,000 an acre, which is low for urban or in- The city spent more than $5.3 million in Essential interventions Mr. Pofok acknowledged that a quasi-retail dustrial land and does not reflect the vast city, state and federal grants cleaning up en- One outspoken industrial expert, Terry or commercial use may be the strongest op- sums spent on cleaning up the properties. vironmental hazards at the Midland site and Coyne, an executive managing director at the tion for the Trinity site due to its size and res- The city of Cleveland gained control of the more than $2.4 million on Trinity, Ms. Cleveland office of Newmark Grubb Knight idential neighbors. However, he said the city properties years ago. In late 2012, it received Nichols said. Frank brokerage, likes the offerings. He said wants both sites to land job-rich buyers. letters from the Ohio Environmental Protec- Asked how long it would have taken to get the Midland site will be particularly compet- “They don’t want someone to build a tion Agency clearing the sites for industrial or the properties ready to market as sites with- itive because it is in a strong industrial district 5,000-square-foot building and use the rest of commercial reuse. The sites were approved out the city-led clean-ups and, in Trinity’s and is close to Interstate 90. The Trinity site, the land for outside storage,” he said. for commercial and industrial use but are not case, demolition of a building, Mr. Pofok said he said, is not as well-located and is in a more The asking price for the properties is available for housing, Ms. Nichols said. with no hesitation, “Decades.” ■

SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt Call For Pricing!! Minimum Delivery: 1Pallet

1-800-547-1538 Salt Distributors Since 1966 20130819-NEWS--6-NAT-CCI-CL_-- 8/16/2013 1:53 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013

East Cleveland Town Center Managed, Leased & Sold by Ostendorf-Morris We welcome the opportunity to assist you with all your real esate needs.

• 31,328 Sq. Ft. Retail Center managed by Ostendorf-Morris • Andy Chess handled the leasing of the Center • Andy Chess represented Seller and Buyer in the sale transaction

Andrew H. Chess GETTY IMAGES CRG/Ostendorf-Morris Company 216-861-7200 Veritix is the primary ticket provider for Detroit Lions games at Ford Field and will serve as the secondary marketplace www.ostendorf-morris.com for all non-football events at the facility. Veritix: Final Four was historic event continued from PAGE 1 crowd of 60,000-plus that fills the That’s the ticket “We’ve all sort of grown out of seats on game day. Veritix, an NCAA partner since this space,” said Veritix CEO “It is in the engagement aspect, 2009, took its platform to new Samuel Gerace of the offices his the ability for us to collect data and heights last April, when the men’s company shares with Bizdom, an understand who is buying our tick- Business Lending Using The Final Four became the largest digi- accelerator for startup businesses ets and using our tickets” that are tal ticketing event in history. also backed by Mr. Gilbert. perks of Veritix’s system, Mr. Perez Power Of Collaboration More than 60,000 fans entered “Is there a vibrant place to go to- said. the Georgia Dome in Atlanta for the gether? We’re doing the evaluation “For example, now when I sell Final Four and national champi- now,” Mr. Gerace said. you a hard ticket, I don’t know onship game via Flash Seats, and, It’s no surprise Veritix would be where that ticket ends up. I don’t according to Mr. Gerace, many fans sizing up a move in the weeks fol- know who’s there and what they’re took advantage of the system’s abil- lowing its multiyear contract with doing,” Mr. Perez said. “This gives ity to transfer tickets easily to an- the Detroit Lions. our fans a much better experience other user. Some seats changed The deal is the first NFL agree- in procuring and using our tickets, hands as many as 12 times prior to ment for Veritix. It will let the Lions and it gives us a much better knowl- the event. use Flash Seats’ paperless system to edge base and data around who is “I think this is very telling — 98% sell individual game tickets, and using our tickets.” of the fans who had tickets through will allow Veritix to handle sec- Calling his company a “full retail ondary-market ticket sales for all platform,” Mr. Gerace said infor- Flash Seats were at the event,” Mr. non-football events at Ford Field, mation gleaned from Veritix’s sys- Gerace said of the Final Four. “That where the Lions play. tem will be used in the Lions’ adver- is what every venue and team wants Veritix’s contract with the Lions tising and marketing efforts, as well — every seat occupied once a tick- coincides with the start of Ticket- as in the development of mobile et has been purchased.” master’s new five-year, $200 mil- apps. Veritix’s NCAA partnership includes all sanctioned champi- Local Business Financing with Local Credit Unions lion deal to be the official home of the NFL’s secondary market. Foot in the door onship events, including the Col- /RDQVXSWR /RZÀ[HGUDWHV \HDUDPRUWL]DWLRQ The Los Angeles-based ticketing Mr. Gerace’s hope is that as word lege World Series for baseball and giant’s dominant relationship with of Veritix’s value to the Lions softball. MPRNUL#FEVFXVRFRP the league extends to the primary spreads, Ticketmaster’s grip on the The company also has agree- Jonathan Mokri marketplace as well. Prior to Veri- league will lessen over time. ments with four NBA teams (the Cavs, in addition to the Denver ZZZFEVFXVRFRP tix’s deal with the Lions, which was “The Lions aren’t the only team announced July 29, all 32 NFL that wants to make sure they are in- Nuggets, Houston Rockets and teams also used Ticketmaster as creasing their fan engagement,” Utah Jazz), the NHL’s Colorado their primary provider of ticketing Mr. Gerace said. He said Veritix is Avalanche, two Major League Soc- services. “aggressively pursuing every NFL cer clubs (Real Salt Lake and the Ticketmaster’s reign over NFL team,” one of which, the Cleveland Colorado Rapids) and four colle- ticketing showed its first sign of Browns, plays its games less than a giate athletic departments (Texas weakening when Veritix made entry mile away from Veritix at FirstEner- A&M, Boise State, Duquesne and into the exclusive club. gy Stadium. the University of Texas at Arling- “I think Ticketmaster has been “Like as with any league, it’s ton). the big dog for many years,” said helpful for teams to have an exam- In 2010, the Veritix system was Jim Kahler, executive director of the ple of a team with a partner it used to sell 11 million tickets valued Center for Sports Administration at trusts,” he said. “We think this is go- at $585 million. Two years later, Ohio University’s College of Busi- ing to accelerate that possibility.” those numbers grew by 54.5% and ness and a former Cavs executive Mr. Kahler — who during almost 54%, respectively. pre-Mr. Gilbert. “But if you look at 11 years as the Cavs’ senior vice It’s no wonder, then, that the the big picture, I think you have an president of sales and marketing company is searching for new digs. owner in Dan Gilbert who got into was responsible for corporate, tick- Mr. Gerace said 20 of the compa- pro sports and said, ‘Hey, why do I et and broadcast sales — agrees ny’s 73 full-time employees are have to work with Ticketmaster? that Veritix is a legitimate threat to based in Cleveland, and “two more Why can’t I do it myself?’ ” industry behemoth Ticketmaster. are about to report” to work. That head count doesn’t include Veritix’s Lion in wait Mr. Kahler said Veritix’s contract with the Lions “falls under two cat- call center in Dallas, which varies Once the Lions’ contract with egories — technology and the eco- from “a few to 120 or more” em- Ticketmaster expired, the door nomics of the deal.” ployees during the basketball sea- opened for Flash Seats’ digital tick- “From the technology stand- son. eting system — which allows ticket point, they can match or exceed When Mr. Gerace spoke to buyers to get into events by swiping Ticketmaster’s capabilities,” Mr. Crain’s in the summer of 2011, the an ID such as a credit card or dri- Kahler said. “Economically, cer- company had a dozen full-timers in ver’s license — to be used at Ford tainly they can compete there, too.” Cleveland. Soon, there will be 22, Field for a host of events. Asked if he thinks other NFL which includes a sales force that Luis Perez, the Lions’ senior vice teams soon will follow Detroit’s was recently created to concentrate president and chief financial offi- lead and finally make the break solely on the colleges. cer, said one of Veritix’s biggest ad- from Ticketmaster, Mr. Perez, the “I think you’ll see us be at 30 full- vantages is its ability to provide its Lions’ CFO, said, “I absolutely be- timers in the next 12 months — clients with a better profile of the lieve that.” maybe more,” Mr. Gerace said. ■ 20130819-NEWS--7-NAT-CCI-CL_-- 8/15/2013 2:38 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Magnet is finding an approach that sticks “Manufacturing is not community, but the targeted com- Manufacturing advocacy group has shifted its focus to the long panies are just the kind of growth- only in our past. It’s very oriented businesses the college term; Prism establishes relationships and grows with business much in our future. It’s in wants its students to do internships our DNA.” with, she said. By RACHEL ABBEY McCAFFERTY [email protected] – Brad Whitehead, president, Follow the money Fund for Our Economic Future Shilpa Kedar, the program direc- The focus of manufacturing ad- tor for economic development at vocacy group Magnet traditionally Prism program also need to have the Cleveland Foundation, said has been on helping area manufac- an idea for a strategy for achieving turers solve specific problems, of- double-digit percentage sales programs like Prism can help drive ten on a short-term basis. But as growth, he said. innovation at small to midsize Magnet has come to recognize the Brad Whitehead, president of the companies. long-term potential of its Partner- Fund for Our Economic Future, Larger companies have those ca- ship for Regional Innovation Ser- one of Prism’s original funders, pabilities in-house, but smaller vices to Manufacturers, or Prism, wants to see the manufacturing companies need the shared capa- its leaders have started to look to- sector and its existing companies bilities that Prism can offer, she ward a new approach. enjoy the kind of success often en- said. The Cleveland Foundation be- Prism was created in 2011 with joyed by entrepreneurs. He said the gan supporting Magnet directly the goal of creating a cohesive net- Prism program’s goal is to help three years ago, Ms. Kedar said, in work of manufacturing resources in these companies grow by creating large part because the Prism pro- Northeast Ohio. The program aims new products and enter new mar- gram was starting and was becom- to connect small to midsize manu- kets. The Fund’s board approved a ing a priority. In each of the last two facturers with resources, such as one-year, $400,000 grant for Prism years, the foundation has given universities and economic devel- in June. Magnet a $400,000 grant. opment agencies, that could help “Manufacturing is not only in In the next few years, Mr. Berry CONTRIBUTED PHOTO our past,” Mr. Whitehead said. “It’s said Magnet wants to increase the companies grow. Manufacturers attend an information workshop during a Jobs for Veterans very much in our future. It’s in our Prism’s $1.7 million annual budget Before, Magnet focused on sell- Program at Magnet. ing its consulting services to busi- DNA.” to $2 million. Currently, about 70% nesses to help them solve specific Prism network could help it move a the next two years. The program’s leaders have a of the program’s budget comes issues. Now, its intention is to work product to market, Mr. Broer said. Currently, Magnet has four em- lofty goal regarding jobs: They want from grants, and about 30% comes with CEOs and create long-term re- “That’s a pretty profound transi- ployees working full-time on Prism to see Prism create 20,000 of them from program fees to businesses. lationships that grow with the com- tion for Magnet, as well,” he added. and another working on its projects by 2020, Mr. Berry said. This pro- Mr. Berry said the goal is to flip that panies. Magnet also is looking into The goal is to integrate Prism part-time. Magnet has a total of 35 gram fills a job-creation niche in ratio in upcoming years. offering a fee schedule that would into the community and make it employees. Mr. Berry said he in- Mr. Broer’s eyes. He said much at- Felix Brueck, director emeritus at let companies pay as they grow. part of how people do business in tends to hire at least two more em- tention goes to big companies and global management consulting The focus is on creating relation- Northeast Ohio. If a company sees ployees in the next few months to to startups, but “there’s an awful lot firm McKinsey & Co. and Magnet ships and helping with “the kinds Prism as the way to get access to work exclusively on Prism. that’s missed in the middle.” board member, said Magnet is of things that move a company for- that network, “it’s going to keep Tracy Green, vice president for ‘DNA’ test looking into different potential fee ward,” said Peter Broer, president coming back to the well,” Mr. Broer strategic and institutional develop- models. of Strongsville-based lighting man- said. Prism works with companies ment for Lorain County Communi- One proposal would help small- ufacturer Lumitex Inc. and a Mag- Magnet president Daniel Berry with annual sales of between $10 ty College, said there is “absolute- er companies, allowing them to for- net board member. said expansion of the Prism pro- million and $500 million in the 18- ly” value in the program. The go upfront payment and instead For instance, instead of helping a gram is a long-term priority for county Northeast Ohio region, Mr. college was one of the first to part- pay as certain growth milestones company implement a cost-savings Magnet. There are 19 companies in Berry said. He estimated there are ner with Prism in 2012. are met. Models like that could help program on the plant floor with tra- Prism’s portfolio today; Mr. Berry 1,000 companies that fit the bill. Not only does Prism connect Prism become more self-sufficient, ditional Magnet consulting, the wants that number to grow to 50 in Companies that become part of the companies with resources in the he said. ■

Lawyer of the Year Buckingham, Doolittle & Burroughs, LLP congratulates Managing Partner John P. Slagter for being named Best Lawyers® 2013 Lawyer of the Year in the Cleveland area for Litigation – Real Estate. John P. Slagter

Litigation – Real Estate – Cleveland John has also been widely recognized by his peers in the following areas: 7KH%HVW/DZ\HUVLQ$PHULFD®, 2007-2013 2KLR·V6XSHU/DZ\HUV®, 2004-2013 2KLR·V7RS6XSHU/DZ\HUV®, 2012 &OHYHODQG·V7RS6XSHU/DZ\HUV®, 2012 0DUWLQGDOH+XEEHOO3HHU5HYLHZ5DWLQJ RI$9® Preeminent

For all of your legal needs, put the experience of our knowledgeable attorneys to work for you today.

&HOHEUDWLQJ

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) ASSOCIATE PUBLISHER/EDITORIAL: John Campanelli [email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Big bucks t’s discouraging to think that, in a democracy, the outcome of an election that won’t be held until November 2014 has been determined by August 2013. However, if John Kasich doesn’t Iwin re-election as Ohio’s governor next year and Ar- mond Budish doesn’t emerge as the successor to Ed FitzGerald as Cuyahoga County executive, we will be in minor shock. Gov. Kasich and Mr. Budish, a state representa- FROM THE PUBLISHER tive who formerly was Ohio House minority leader, are popular figures, though it isn’t their voter appeal that makes them clear front-runners in their respec- Special tribute to two special people tive races. Rather, it is the significant stashes of campaign cash the two men already have piled up Charlie Wood doubtless will go on, tire- and us. As I watched his memorial video that give them big head starts on their rivals. his is a tale of two people we lost recently. It’s likely you don’t lessly overseeing the golf operations at and saw the pictures of him and his According to campaign finance reports filed late know them, nor will Mayfield and Sand Ridge golf brother, in their uniforms with their last month, Gov. Kasich’s campaign war chest al- you read a news story BRIAN clubs, and he’ll do it with his mix mother, I thought about how extraordi- ready holds more than $4.4 million. By contrast, the Tabout their passing. of Southern gentility, class and nary their selfless service was, and what TUCKER Republican’s sole Democratic opponent, Mr. But their loss deserves our at- caring. His friends will know of it meant to the world. FitzGerald, had $544,000 in his campaign kitty. tention. his sadness, but his members And if the adjective “selfless” applied to An even more striking disparity in campaign fi- Patty Wood, the quiet, and students probably won’t, any man I’ve known, it was Jim Clancy. Pious Irish Catholic. Devoted husband nance muscle is seen among candidates who’ve an- charming, caring wife of long- because, well, that’s just how he is. And that’s exactly how Patty and father. Hard working and self-reliant, nounced their desire to fill the void Mr. FitzGerald time local golf professional Charlie Wood, passed away af- would want it. nearly to the end. When he no longer will leave by not running for a second term as coun- ter a long battle with cancer. For * * * * * worked for a paycheck, he was a tireless ty executive. Rep. Budish as of late last month had those of us long associated with Last week, I lost a man who volunteer, often at Conneaut’s railroad $345,000 in campaign money. The combined cam- the local Ronald McDonald was as close to a second father museum in our town’s former depot. paign stashes of his rivals, all Democrats like Rep. House, Patty was special and, paired as I’ve ever had. Jim Clancy, my last liv- This fall, when his beloved Ohio State Budish, was less than 5% of that total. with her husband, helped the House in ing uncle, was a testament to all that was football team begins playing, I’ll think of Shirley Smith, a state senator from Cleveland who so many ways, always without the recog- great about The Greatest Generation. He Uncle Jim and how he loved to spar with is running for the county’s top job, tried to put a nition they deserved. was one of countless teenage boys who my bride, a native Michigander who’ll al- left small towns across America to fight ways love her Wolverines. When last we good face on the situation. If Charlie is the consummate club professional — and he is — then Patty was in World War II, never thinking about saw him, in hospice care, Janet brought “Money is not the key to running the race,” Sen. the embodiment of the club pro’s spouse themselves or the risks they would face a welcome return of that mischievous Smith recently told The Plain Dealer. “The people and partner, willing to endure long hours once they got “over there.” Irish grin when she entered his room are the decision makers, not the dollar bills.” and ready to help in any way. As I stood by his graveside and lis- singing the Michigan fight song. Sen. Smith is a fine legislator, and we would not Patty, like Charlie, always was more tened to the 21-gun salute, I thought Most of the world won’t know of Jim expect her to walk away from a campaign fight be- interested in you and what was going on about him and my dad (an Army Air Clancy’s passing, as he joins his former fore it has begun. She also is correct in saying that in your life. How’s the job? How’s the Corps signalman in North Africa) and comrades. But we, his family, will never voters are the ultimate decision makers in the elec- family? How’s the golf game? (P.S., hers how they all enlisted to fight the good forget. And as for me, I just want to be tion process. But the ability of dollar bills to influ- was usually better than yours, but you fight for freedom. like him as much as I possibly can. The wouldn’t know it unless you were lucky Uncle Jim was a Navy guy, and had the world would be far better if we had more ence the way voters cast their ballots is undeniable, enough to play with her and Charlie.) requisite forearm tattoos to remind him, men like Jim Clancy. ■ and candidates who can outspend their competi- tors by vast amounts tend to enjoy a distinct advantage in their runs for office. THE BIG ISSUE Campaign reform laws have done nothing to take money out of elections. In many ways, because of Do you think downtown could support a full-fledged grocery store, like a Heinen’s or Whole Foods? the emergence of faceless but powerful political action committees, they’ve made the process worse. The situation calls for voters to cut through the campaign noise by doing their due diligence about the candidates and issues before them. Unfortu- nately, many don’t invest the time and effort required to inform themselves, which gives the campaigns with the biggest megaphones an edge over those that are limited financially in how often they JIM JOHNSON SAMIRA KARIM CONOR COAKLEY MICHELE DULL can shout their message. Cleveland (night Cleveland Elyria So, how are preordained election outcomes pre- South Euclid manager at I would think they could, from Of course. There’s enough No. I don’t think that people vented? One step would be to stop letting politicians Constantino’s) take leftover cash from previous campaigns and use what I understand about the residential, and there’s would be interested in going it as seed money in future campaigns for new of- number of people that live No, I don’t think so. There’s enough momentum in the into a big chain like that. It downtown and the amount of office market where a fices. Mandate the money go to charity, or to school not too many people takes longer to go in and get housing that’s going to be downtown. It’s not like the full-service grocery store is out. districts in the county where a candidate resides, opening up. These people suburbs. almost a necessity to keep and let campaign donors take a proportional chari- have to get their food the momentum. I think the table writeoff. But don’t let politicians treat those somewhere … and May Co. would be a great funds as their personal campaign starter kits. Constantino’s isn’t what I’d spot. It’s right in the middle. call a full grocery store. 20130819-NEWS--9-NAT-CCI-CL_-- 8/15/2013 1:58 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Shout: Funds will be careful not to divulge any key strategies continued from PAGE 1 plan or investor presentation. But tions with journalists.” “There’s a lot of money in the world and “Maybe not a commercial for a then I think you will see things that Those who violate the longtime venture capital fund or a private eq- are off the wall, that are funny, that prohibition on general solicitation a lot of great ideas, and this will uity fund, (but) I do think we will see are attention-grabbing.” and advertising face a range of dramatically encourage their ability webinars or things on the Internet John M. Mueller, who founded penalties for doing so, according to to get together.” that you could not have done before his own private equity fund, Part- Mr. Bobrow. They include a manda- – Charles Stack, founder and CEO, FlashStarts Inc., go live on that date as if a starting ners Private Equity LLC, earlier this tory suspension of fundraising; los- on the securities advertising ban being lifted Sept. 23 gun went off,” said Mr. Bobrow, a year, seems to reflect what Mr. Bo- ing the exemption that allows the business and finance practice part- brow expects early on. Mr. Mueller raising of a fund that’s unregistered ner in the Cleveland office of the Taft wrote in an email, “… A profession- with the SEC (which effectively ter- For its part, Cleveland Capital come before you can trade securi- law firm. al, understated advertising cam- minates the fundraising); and civil Management after Sept. 23 plans to ties.” “There are people who are very in- paign could make sense to reach and criminal penalties. augment the information on its The raised bar for verifying interested in being first,” he said. (investors) in our fundraising ef- website, which offers little more vestors’ qualifications, Mr. Bobrow One of them is Charles Stack, CEO forts.” Minuses with the pluses than contact information now, Mr. said, may drive a “whole new stand- and founder of Cleveland startup Still, not everyone accustomed to Though there are potential bene- Massad said. He expects to provide alone industry.” FlashStarts’ Mr. business accelerator FlashStarts Inc. raising money privately expects to fits to general advertising by private a more detailed description of the Stack sure hopes so. One of the star- “I’ve been chipper since the 10th,” spread the word. equity and hedge funds, there also firm’s investment process and in- tups he’s incubating, Crowdentials, Mr. Stack said, referring to the July A spokesman with the region’s are risks and limitations, local fund vestment examples. is in the business of certifying investors’ accredited status. 10 vote by the Securities and Ex- most prolific dealmaker, The River- managers and advisers say. Shouts from the valley change Commission to lift the prohi- side Co., says the Cleveland private One is accepting so-called “hot “We’re sitting pretty, with one of bition against general solicitation equity firm has no plans to advertise money” from investors who are chas- The lifting of the ban on general our companies that’s perfectly and general advertising in certain of- to the masses, in large part because ing the performance a firm may have solicitation and advertising does poised to benefit from this change,” ferings. its press releases and participation advertised but who might remove not affect other securities laws. Mr. Stack said. FlashStarts raises money to invest in industry conferences are aimed their money if it doesn’t happen. Those who want to conduct offer- The ban’s end, advisers predict, in the startups it incubates, and at finding investment opportuni- Another downside is exposing to ings without the use of general so- will produce job opportunities for upon seeing the SEC’s decision ties, not investors. too many eyes the strategies that licitation and advertising may con- branding experts, who might be moved the date of its “demo day” — “Our model is predicated on ap- differentiate a fund. tinue to do so and are not subject to hired to freshen logos and related at which 10 startups will make pre- proaching large pension funds, en- “It’s not like you want to be out a new rule to take “reasonable” materials before firms go to market, sentations about their products and dowments, funds of funds, in an ef- there barking at the moon what steps to verify that investors are ac- and web developers, whom compa- businesses — to Sept. 23 from Aug. fort to attract many millions of your secret is,” said John Micklitsch, credited investors, or those with a nies might hire to spruce up web- 27. That way, Mr. Stack said, Flash- dollars,” Graham Hearns said. senior vice president and director of certain net worth or income. sites that, until now, stored most of Starts can expand the audience of “(We’re) not necessarily looking to the private client group of Ancora That verification requirement has their investment information be- customers and investors to whom its appeal to individual prospective in- Advisors LLC, a Beachwood regis- riled the Angel Capital Association, hind firewalls. startups can make their pitches. vestors who might be looking to tered investment adviser with more which argued in a July 16 statement Mr. Stack said he believes the Companies seeking to raise mon- commit a few thousand dollars.” than $150 million under manage- that it will result in many angel inability to solicit and advertise gen- ey through the sale of securities have Riverside’s position doesn’t sur- ment in three hedge funds. vestors refusing to invest, hurting erally is particularly significant for had two choices: register their offer- prise Mr. Bobrow. He expects funds “When you find these inefficien- startups’ access to capital. Ohio and Cleveland. ings with the SEC, or rely on an ex- that raise their capital from high- cies that you are successfully ex- “Not a single angel I have spoken “It’s probably oddly much less emption from registration. Most ex- net-worth individuals and wealthy ploiting … to the benefit of your in- with is willing to provide personal significant to Silicon Valley than it is emptions prohibit companies from families to advertise the most. He vestors, it’s not as though you want financial information to an issuer to Cuyahoga Valley,” Mr. Stack said. engaging in general solicitation or also predicts smaller, younger funds to broadcast what those inefficien- who is asking them for investment,” The capital flowing into this region, general advertising related to their and established operating compa- cies are to the general public so that said the organization’s executive di- he said, “should increase dramati- offerings. nies in need of cash to use advertis- others can replicate what you’re do- rector, Marianne Hudson. “This vi- cally as companies are able to solic- That prohibition has meant those ing to cast a wider net. ing and, over time, remove those in- olation of privacy is untenable … it investment as far as they can raising money in an unregistered of- That’s not to say Mr. Hearns efficiencies from the market,” Mr. This would be like having your bank shout.” fering have had to do business the doesn’t see any benefit in the ban’s Micklitsch said. demand to know your net worth be- “There’s a lot of money in the “old-fashioned” way — asking end for Riverside, which raises Fund managers say general ad- fore you could open a bank account world and a lot of great ideas, and someone to introduce you to some- funds ranging from $200 million to vertising also opens the possibility to put money in, or the stock mar- this will dramatically encourage ■ one he or she knows who might want more than $1 billion. that less sophisticated investors will ket demanding to know your net in- their ability to get together.” to hear about your investment op- “I think the lifting of the ban al- end up investing in opportunities portunity, said David St. Pierre, co- lows groups like Riverside and other that are far more risky and illiquid founder and president of real estate private equity firms in Northeast than they knew. private equity firm Legacy Capital Ohio and across the country to sleep “Who verifies them (investors)? Partners in Lyndhurst. a little bit easier at night,” he said. It’s the managers’ job to verify Following a directive of the feder- “We’ve always run the risk of one of them,” said Wade Massad, co-man- al Jumpstart Our Business Startups our colleagues accidently saying aging partner of Cleveland Capital Act, or the JOBS Act passed in April something on some panel at some Management, a hedge fund in 2012, the SEC last month in a 4-1 conference in some part of the world Rocky River. “You could see less so- vote eliminated the ban on promot- on the topic of fundraising that could phisticated investors getting infor- ing these investment opportunities. jeopardize our entire fundraising cy- mation on the web or through ad- From Mr. Stack’s perspective, it’s cle. The flexibility in the rules now al- vertising that may be from funds or a positive change. lows us to take a deeper breath in guys who are raising capital who “It is going to be great for capital- participation at panels, in interac- have very speculative investments.” ism because it allows the money to flow as smoothly as information has been recapitalized by does today,” he said. “While money can be wired at the speed of light, getting investments in any way (oth- There are thousands of law ﬁrms. er) than manually, in smoky rooms, Choices But many accomplished attorneys was left behind. It’s as if the whole have chosen McDonald Hopkins. 20th century bypassed the fundraising industry. So now, it’s being brought into the present.” Law firms show the way Many startup companies attempt- ing to raise capital had pushed for this change, arguing the ban on gen- 7KHXQGHUVLJQHGDFWHGDVH[FOXVLYHÀQDQFLDODGYLVRUWR eral advertising impinged on their )LUH'H[//&LQWKLVWUDQVDFWLRQ ability to access capital, Mr. Bobrow said. Richard Blake Edward Kraus Richik Sarkar He expects change to unfold in the way attorney advertising did following a 1977 U.S. Supreme Court case that made it legal for lawyers to advertise. Today, he said, there’s “an Mergers & Acquisitions . Capital Raising . Financial Opinions & Valuations . Restructuring & Bankruptcy onslaught of advertising by lawyers.” McDonald Hopkins LLC “I think we are going to see things 600 Superior Avenue East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 For more information, please call (216) 589-0900 we have never seen before,” Mr. Bo- or visit www.wesrespartners.com brow said. “We’ll start out seeing Jennifer Blaga, Director of Legal Recruiting buttoned-down and conservative advertisements, talking about per- Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach formance, talking about traditional $SURXGPHPEHURI WKHSUHPLHULQWHUQDWLRQDODOOLDQFHRI LQYHVWPHQWEDQNLQJÀUPV mcdonaldhopkins.com Carl J. Grassi, President things you would see in a business 20130819-NEWS--10-NAT-CCI-CL_-- 8/15/2013 2:58 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013

GOING PLACES JOB CHANGES Hurtuk Watts to senior associate. lead. MCPC INC.: Bill L’Esperance to EDUCATION SERVICE vice president, strategic accounts. NORTHEAST OHIO MEDICAL ERC: Sue Bailey to senior OECONNECTION: Dave Speck to UNIVERSITY: Penny R. Smith to consultant, compensation and manager, applications. benefits, HR consulting practice. executive director, academic PARAGON CONSULTING: Kamran services. PRICE FOR PROFIT: Jennifer Azam to staff developer; James Shook-Penick to recruiter: Michael Crosby Sarkar Nassif Tipton Kiel to senior developer; Stacey Zur ENGINEERING Brenner to consultant; Kairat to account development director. Kasymaliev to associate; Zachary STREAMLINK SOFTWARE: Sarah CT CONSULTANTS INC.: Ian A. Morell to analyst; Pete MANUFACTURING MEDIA Yeager to sales associate; Jeff Garfoli to porject manager. Rollenhagen to business analyst; Sobieraj to strategic sales manager. DELTA SYSTEMS INC.: Mark J. BABCOX MEDIA INC.: Jason Scott Sonnenwald to developer; FINANCE Fechtel to chief operating officer; Morgan to managing editor, Fleet Terry Oblander and Jonathan Equipment. AWARDS FEDERAL RESERVE BANK OF Michael R. Jeziorski to senior vice Konkoly to directors; Justin Bailey CLEVELAND: Jenni Frazer to president; William D. Michaels to and Steve Klein to managers; AMERICAN ACADEMY OF assistant vice president, Supervision vice president, sales and marketing. NONPROFIT Cedric Crucke, Benjamin NURSING: Margaret O’Bryan and Regulation Department. DIEBOLD INC.: Stefan E. Merz to CENTERS FOR FAMILIES AND Dussault, Partha Adhikary, Ankur Doheny (Kent senior vice president, strategic CHILDREN: Elizabeth Newman to Deora and Heather Monaco to con- State University FINANCIAL SERVICE projects. chief operating officer. sultants. College of HEIGHTS LIBRARIES: Jana Nassif Nursing) to Fellow. MCMANUS, DOSEN & CO.: April GOODYEAR TIRE & RUBBER CO.: to finance manager. STAFFING HUMAN RIGHTS M. Herner to senior accountant. Tom Kaczynski to vice president, investor relations. HOPEWELL: Peggy Barnes DIRECT CONSULTING CAMPAIGN: Henry Ng, LEGAL RPM INTERNATIONAL INC.: Terri Szpatura to director of development. ASSOCIATES: Andrew Tipton to project manager, health care IT M.D., Wallace to director, global treasury; MUSIC SETTLEMENT: Tim BUCKLEY KING: Elizabeth A. practice. MetroHealth Karin Owen to director, corporate Kastelic to vice president, finance; Crosby to partner, labor and System) received Doheny secretarial and legal services; Lynn B. Johnson to director of employment practice. TECHNOLOGY the 2013 Michael Matchinga to director, marketing and communications; Leadership Award. DWORKEN & BERNSTEIN CO. human resources information Patricia Camacho Hughes to BRITESKIES: Robert Baird and LPA: Frank Bartela to associate. systems; Jason Pinizzotto to manager of annual giving. Michael Cesen to project RETIREMENT MCDONALD HOPKINS LLC: Richik manager, corporate accounting. managers; Michelle Kowalski to REAL ESTATE UI/UX designer. VALLEY ART CENTER: Ann Sarkar to member, litigation WALLOVER OIL CO.: Mark Csikos Chaney (executive director), department. to regional sales manager. COLLIERS INTERNATIONAL: Katie INFORCE TECHNOLOGIES LLC: effective in September. Maria Stevens to director, business development and strategic alliances; Jeff Burlinghaus to senior software Send information for Going Places to engineer; Luz Ruiz to billing software [email protected].

Stem cell trial stalled by patient recruitment

Recruiting prob- ON THE WEB Story from enrollment by this lems have slowed www.crainscleveland.com summer. That dead- down the first study line already had designed to test been pushed back once: Their origi- whether Athersys Inc.’s adult stem nal goal was to complete recruit- cell therapy works in humans. ment by the end of 2012. The Cleveland company, working While discussing the company’s with pharmaceutical giant Pfizer, second-quarter results with ana- has had trouble recruiting patients lysts, Athersys CEO Gil Van Bokke- for the Phase II clinical trial, which len said “the recruiting landscape is will test whether Athersys’ Multi- pretty complex at the moment.” Stem treatment works on patients That’s partly because other tradi- with ulcerative colitis, a form of in- tional drugs targeting ulcerative col- flammatory bowel disease. The itis patients are going through clini- “The Only Must-Attend Content Marketing Event on the Planet” companies plan to complete patient cal trials and competing for the Todd Wheatland, Global Head of Marketing, Kelly Services enrollment before the end of the same patients, he said. He added year and produce results from the the summer tends to be a harder trial in early 2014. time to recruit patients, especially in September 9-11, 2013 | Cleveland They previously planned to finish Europe. — Chuck Soder Cleveland Convention Center • Cleveland, OH FUSE BOX

CLEVELAND OH This is not a skyline. This is a human interchange of ideas, dreams and productivity. And it is connected through technology, infrastructure and relationships. At Colliers, Learn Proven Content Marketing Tactics and Strategies From: our commercial real estate team is wired for opportunities in every pocket of the planet. So no matter where you do Coca-Cola • Intel • Caterpillar • SAP • Avaya • TD Ameritrade • The Four Seasons business, Colliers’ insights and expertise are there, lighting Forbes.com • Tellabs • Cisco Systems • Johns Hopkins • The Hershey Company the way to new opportunity in commercial real estate. colliers.com/ohio SPECIAL SUMMITS 5 Summits, on Thursday, September 12th, dedicated to the Financial, Health, Manufacturing, Tech and Small Business industries.

AUGUST 19 - 25, 2013 CRAIN’S CLEVELAND BUSINESS 11

INSIDE 14 ADVISER: WHEN BEING FRIENDS GETS COMPLICATED. LEGAL AFFAIRS Wellness programs often are rewarding Regulations that take effect Jan. 1 have employers reassessing plans By CHRISSY KADLECK [email protected]

ather than tie its wellness program to premium dis- counts, excluding those who might not take part in Rits insurance benefits, Great Lakes Brewing Co. offers employees their own pathway to improved health through a reward-based virtual program called Vitality. Nearly 65% of Great Lakes’ full- and part-time employees took part during the first year of the formal programming, which ended in April, said Michelle Belviso, human resources manager for the local brewer. “It’s a really well-rounded program. They make sure that everything is verified so we’re not getting any health results or having to worry about information that is coming through the HR department that maybe shouldn’t,” she said about Vitality, the featured product from Wellness IQ, a wellness company based in Independence. “If we would have tried to roll something out in house, it would have been very difficult for us to create a program that could have MARC GOLUB been customized to the individual Ron Isroff spent 45 years with Cleveland law firm Ulmer & Berne LLP before opening Isroff Mediation Services LLC in level like this is,” she said. Beachwood. The company launched June 1. Not only that, Vitality also han- dles all of the administrative de- mands and keeps the company compliant with all regulations, including the new rules announced in June by the U.S. Department of La- NO DISPUTING THIS bor, Health & Human Services and the IRS that take effect Jan. 1, said INSIDE: Commercial court is here Mary Bencze, director of operations As companies attempt to curb their legal to stay. Page 12; for Wellness IQ. Practice of mediation gains traction. The new regulations governing costs, mediation becomes a popular tool Page 16 employer-sponsored programs to By MICHELLE PARK through which he does work for promote health and disease preven- [email protected] clients as a partner at Hermann, mediation was not as widespread. tion have companies either waist- Cahn & Schneider LLP in Cleveland. “There’s no doubt about it: It deep in plan redesign or backing off fter 45 years with Cleve- A year earlier, Porter Wright will sustain itself,” predicted Ms. plans to roll out more aggressive land law firm Ulmer & added mediation as an official ser- Foley Jones, who chairs the alter- wellness programs with their 2014 Berne LLP, Ron Isroff has vice on its website, though its peo- native dispute resolution practice benefits packages, according to well- hung his proverbial shin- ple had offered it previously. at Cleveland-based law firm, Giff- ness and legal professionals. gleA as a mediator — and he’s got And others, too, are working to en & Kaminski. “It’s just growing “It’s top of mind for everybody,” company. enter the profession, according to by leaps and bounds. Corpora- said Andy Carr, health manage- Isroff Mediation Services LLC Peggy Foley Jones, who began of- tions are trying to save money.” ment services product leader at officially opened for business June fering mediation after 12 years of Mediation joins disputing parties Cleveland-based Oswald Compa- 1 in Beachwood. working as a trial judge with Cuya- with a mediator, who commonly is nies, an insurance brokerage that In 2011, another litigator, Peter J. hoga County. paid by both sides and facilitates regularly assists companies in de- Krembs, launched a mediation “It is taking off,” Ms. Foley Jones discussions between them. veloping wellness plans. website, resolveandmoveon.com, said. “When I was still on the bench, See DISPUTING Page 16 See WELLNESS Page 17 20130819-NEWS--12-NAT-CCI-CL_-- 8/15/2013 2:10 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS LEGAL AFFAIRS AUGUST 19 - 25, 2013 Commercial court is here for good

best perspective, Mr. Sundahl said, Proponents say the on its impact and that the court is moving in the right direction. docket will be good “The quick resolution of disputes and the ability of a business for business, serve to have confidence in the consis- tent and fair application of the law as attraction tool allows for businesses to operate in an environment of certainty and By KIMBERLY BONVISSUTO predictability,” he said. “All of this [email protected] lowers the cost of doing business and increases the profit margin.” three-and-a-half-year pi- Cuyahoga County Common lot of a commercial court Pleas Court judges voted this sum- in Cuyahoga County has mer in favor of making the com- earned a permanent pres- mercial docket a permanent pres- enceA in the Common Pleas Court ence, prior to which the Cleveland YOU WANT A LAW FIRM THAT’S General Division, much to the ap- Metropolitan Bar Association had proval of some local attorneys, formed a subcommittee to express judges and business entities. its interest in continuing the com- AS DEDICATED TO YOUR So what will this ultimately mercial docket and to be a re- mean for Northeast Ohio and source to the courts on how to pro- those doing business here? ceed in the future. BUSINESS AS YOU ARE. Proponents of the commercial Tim Collins, a partner at Collins court say the venue acts as a busi- & Scanlon LLP, a business law firm ness expansion tool, attracting We share your desire to seize opportunities, reduce risk and deliver exceptional in Cleveland, and an active mem- companies looking for an efficient, ber of the CMBA Litigation Sec- value. From business law, corporate fi nance, tax and employee benefi ts, to labor and sophisticated way of handling tion, said he believes the commer- employment, intellectual property and commercial litigation, Ice Miller LLP offers all complex business disputes. cial court will continue to be a of the legal services and counsel you need to succeed. The courts are relatively new, positive venue for the region’s gaining traction within the last 10 business community. years, and in Ohio only those “The overwhelming majority of Chicago ∙ Cleveland ∙ Columbus ∙ DuPage County, Ill. ∙ Indianapolis ∙ Washington, D.C. counties with a population of more attorneys that had experience with www.icemiller.com than 300,000 and six or more com- the commercial docket found it mon pleas judges can establish a very positive,” Mr. Collins said, commercial docket. adding that the Ohio Supreme Regardless of whether a case in- Court requirement that commer- volves complaints about antitrust cial court judges publish their claims, business creation, liquida- opinions provides guidance to at- tion, contract violations, fraud, in- torneys and businesses. surance coverage, liability, non- “Everyone likes some pre- compete agreements, shareholder dictability. If you have some direc- lawsuits or trade secrets, the new tion to give to businesses, written permanent court will streamline by commercial docket judges, it’s business-oriented litigation in more predictable.” Cuyahoga County. The purpose of a commercial Creating a permanent fixture docket, said Andrew S. Pollis, an as- Commercial dockets have been sistant professor in the Milton A. operating in Cuyahoga, Franklin, Kramer Law Clinic Center at the Hamilton and Lucas county com- Case Western Reserve University mon pleas courts since January School of Law, is to create an av- 2009. Locally, the court had been Porter Wright is among enue for judicial resolution of com- under the sole jurisdiction of mercial disputes that doesn’t get Judges Richard McMonagle and clogged up with all the other things John P. O’Donnell. WKHÀUVW$&&9DOXH on the general docket, including In the coming months, the criminal cases and civil disputes. Cuyahoga County Common Pleas &KDPSLRQVLQWKHZRUOG Not only that, an Ohio Supreme Court will create a local rule to ad- Court rule regarding the commer- dress operational details, but the cial dockets sets a timeline of no permanent court will include some Innovative legal KRQRUHGE\WKH$VVRFLDWLRQ longer than 18 months for dispute tweaks from the pilot, said Judge project management resolution. The typical timeline for John J. Russo of the Cuyahoga common pleas court cases is two County Common Pleas Court. RI&RUSRUDWH&RXQVHO concepts and alternative years. ■ The number of judges will in- fee arrangements “It really is a way of creating an crease from two to four; Judges efficient mechanism to resolve McMonagle and O’Donnell will re- were critical to being business disputes to permit the tain their duties, with additional honored as a 2012 parties to go back to what they judges added by January 2015; want to do, which is business,” Mr. ■ Judges will serve three-year ACC Value Champion. Pollis said. terms instead of having indefinite Decreased costs, appointments; ■ The Cuyahoga County Com- higher profit margin mon Pleas Court will make recom- Mark J. Sundahl, an associate mendations to the Ohio Supreme professor and associate dean for Court on judges to be considered administration at Cleveland-Mar- for open seats on the commercial shall College of Law at Cleveland court. State University, said the end re- Judge Russo said there are 34 sult of the commercial docket ex- judges on the Common Pleas periment should be reduced costs Court bench representing a wealth for companies due to expertise, ef- of talent, and many are qualified to ficiency and consistency. handle commercial cases. He said He added that a commercial the bench also wanted to have a docket is another attraction that say in appointing judges to the may lure companies from outside commercial docket without giving We earn our stripes. of the county — or state — to that decision up to a task force in Cuyahoga County. Columbus. porterwright.com Indeed, the support of the com- “We wanted to say we know our mercial docket by the Association judges better than you do,” Judge of Corporate Counsel — whose Russo said. “With that input we’ll be Cincinnati | Cleveland | Columbus | Dayton | Naples | Washington D.C. members serve as in-house coun- able to share our list of judges quali- sel to local corporations — is the fied to go and run the docket.” ■ 20130819-NEWS--13-NAT-CCI-CL_-- 8/15/2013 1:57 PM Page 1

AUGUST 19 - 25, 2013 LEGAL AFFAIRS CRAIN’S CLEVELAND BUSINESS 13 Nurse-lawyers bring rare skill, perspective to legal field Organizations value knowledge of health system, patient care issues “Whether we are dealing with a ments the school had in the 1980s legal or business issue, they bring a and 1990s) and only one at Case By EILEEN BEAL medical malpractice, that’s what very unique perspective — a patient Western Reserve University School [email protected] she did, until she joined the Cleve- “Nurses (who get law care perspective — to the table,” of Law. land Clinic’s legal team in early degrees) don’t leave said Janet L. Miller, chief legal Cleveland State’s Ms. Lewis, ack in the mid-1980s, when 2011. officer at University Hospitals. who keeps her thumb on the she was working in the She now works in the areas of nursing, they just take it to Browne C. Lewis, director of the pulse of health care law, anticipates medical oncology unit at medical defense and civil litigation, another level.” Center for Health Law and Policy growth in the field. and an associate professor at Fairview Hospital, Patricia focusing on hospital, physician, – Browne C. Lewis, One reason is law firms and BPoole, a registered nurse, had what’s nursing and health care personnel Cleveland State University’s Cleve- other organizations will be looking Cleveland-Marshall College of Law, land-Marshall law school, put it called, in health care, a sentinel claims. Cleveland State University to hire people with health care moment. “It (a law degree) wasn’t my this way: “Nurses (who get law de- experience. Another is that she “I was working in a job that was original plan,” she said, “but I love And not just because these grees) don’t leave nursing, they just expects more law schools will be take it to another level.” physically, emotionally and mentally what I’m doing.” lawyers know how the health care recruiting nurses and more health exhausting,” said Ms. Poole, who Lawyers like Ms. Poole and Ms. system — especially the local sys- Hitting the ground running care institutions will be sending now is a partner at BakerHostetler, O’Brien are considered second- tem — works. And how to mine nurses back to school for “and I realized there was no way I career lawyers, and most who hire medical records, charts and docu- Currently, only two nurses are in-counsel expertise. was going to be able to do what I them are glad to have had them ments for relevant information. enrolled at Cleveland-Marshall (as “They (nurses) will hit the was doing when I was 40.” transition into the legal profession. And speak fluent medicalese. opposed to the double-digit enroll- ground running,” she said. ■ She thought about getting a master’s degree — an advanced nursing degree that would have prepared her to become a clinical nursing specialist or nurse educator or go into research or administration. However, she decided that a law degree ultimately would allow her to have a broader impact on health care. After her first year at Cleveland- Marshall College of Law, she quit her My Benesch My Team full-time job at Fairview and went to work in the litigation department at BakerHostetler, where her first project was reviewing the medical records of asbestos claimants. “Everything we were learning in law school was so theoretical,” she said, “so I thought getting a job in a law firm would give me the chance to put all that theory I was getting to practice.” “BENESCH “And,” she added, “the hours helped me take the were better, too.” In Ohio, where there are nine law schools and 115 schools of nursing, nurse-lawyers are hard to find. next step.” According to The American Associ- “ If I see value in it, Benesch ation of Nurse Attorneys, five prac- supports it. The firm invests significant tice in the Cleveland-Akron area resources in associate development and a total of 21 are practicing in the state. and giving me the tools I need to be With general enrollment trending successful now, and also to get to downward at law schools, and the next step in my career. Benesch movement for nurses to seek career advancement in other — and has consistently demonstrated its increasingly entrepreneurial — commitment to my continued success.” areas, those numbers aren’t necessarily on track to grow. However, health care reform and DANIEL O’BRIEN the federal and state policy, regula- Associate, Health Care Practice Group tory and compliance issues that will Cleveland Office come with it may change that pic- [email protected] ture, according to some observers. Lateral hire in 2011 “The support structure and the range and depth of experience in my practice The right prescription group and throughout the firm let you take As for Ms. Poole, after graduating on in-depth, complicated matters and in 1991, she moved up the ladder at address them quickly, with the flexibility to BakerHostetler, and she currently works in the areas of occupational move work between people efficiently. It’s safety and health, federal and state a really good combination—a close-knit regulatory compliance and class group with broad reach.” action litigation. “I go out into the trenches and investigate things,” she said, “so I’ve got a hard hat and CLIFFORD MULL steel-toed boots and a respirator in Associate, Health Care Practice Group the trunk of my car.” Cleveland Office For Cheryl O’Brien, an MD had [email protected] been her goal from the moment she Lateral hire in 2011 started nursing school at what is now Ursuline College’s Breen School of Nursing. “It was going to be my spring- board to a medical degree,” she explained. “But as I looked around at the interns and residents and their long hours and inability to balance home and work, and heard all the talk about medical law and Want to be part of the Benesch team? Contact JEANNE HAMMERSTROM, Chief Marketing/Recruiting Officer, at (216) 363-4180 or legal issues, I decided to go to law ® school, become a trial lawyer and [email protected], or download Benesch’s recruiting app, Apportunity, from the iTunes store (keyword: Benesch). practice in Cleveland.” So, after graduating from law Cleveland • Columbus • Indianapolis • Philadelphia • Shanghai • White Plains • Wilmington • www.beneschlaw.com school in 1988, and specializing in 20130819-NEWS--14-NAT-CCI-CL_-- 8/15/2013 1:41 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS LEGAL AFFAIRS AUGUST 19 - 25, 2013 LOOKING FOR A SILK Being Facebook STOCKING LAW FIRM? ‘friends’ often {Well, you’re not going to find one here.} is complicated We are more like a steel toe work boot firm. ALEXGERTSBURG Reminger has the resources to provide whatever it takes when Supervisors might you are confronted with challenges requiring legal expertise. be forced to report We work hard to keep your budget in mind and your business at heart. an employee who From contract negotiations to litigation, succession planning to labor and employment law, Reminger provides experienced is violating policy counsel that achieve results. amaraderie in the work- ADVISER RESULTS. PERIOD. It’s more than just our motto, it’s our passion. place makes for a more To learn more, contact Managing Partner Stephen Walters. pleasant and often more productive work environ- employee on Facebook — say be- Cment. cause the friendship existed before When supervisors attempt to the employment relationship be- build this camaraderie by “friend- gan — here are some tips for the ing” their employees on Facebook, supervisor that may mitigate some potentially negative consequences: however, personal and legal risks ■ may outweigh any advantages. As the supervisor is in a posi- Here are some areas of concern: tion of authority over the employ- ■ From a personal perspective, ee, the supervisor should avoid ini- Results. Period. if a supervisor “friends” an em- tiating the friend request because the employee may feel obligated to Reminger.com - 216.687.1311 ployee and learns from a Facebook post that the employee is violating accept. ■ a company policy, the supervisor, If the employee does make Akron | Cincinnati | Cleveland | Columbus | Sandusky | Toledo | Youngstown | Ft. Mitchell | Lexington | Louisville | Indianapolis who is now also the employee’s the request, the supervisor should “friend,” may find herself in the talk candidly with the employee uncomfortable position of needing about the potential implications of to report a friend to another man- accepting, including the fact that ager or to take disciplinary action the supervisor owes obligations to on her own. the company and may have to re- ■ From a legal perspective, if a port malfeasance. ■ supervisor “friends” an employee, The supervisor should main- he may acquire access to the tain appropriate boundaries, tak- employee’s personal posts and ing care to refrain from making online discussions. any comments on Facebook that Such access can lead to legal lia- could possibly be construed as in- bility if an employee claims the appropriate, unprofessional, dis- discovery led to her discipline or criminatory or harassing, even discharge. Employees could, for during non-working hours. instance, claim the adverse action Many say that social networking was discriminatory, possibly be- has completely altered the legal cause of a disability of which the landscape of employer-employee supervisor became aware from the relations. Others say that it has employee’s Facebook posts. simply created more channels for Similarly, an employee could the same types of communica- claim any adverse employment ac- tions, and therefore simply prolif- tion is based on a right protected erated that which already existed. by the National Labor Relations Whichever philosophy is true, Act, a law that prohibits employer folks should be aware of the new retaliation for employees’ discus- applications of old avenues of sions about the terms and condi- liability. ■ tions of their employment. Supervisors are therefore well Alex Gertsburg has been in private advised to refrain from “friending” practice for more than a decade, their employees to avoid uncom- serving as both in-house general fortable personal situations and counsel and outside counsel to THE ART OF PROBLEM SOLVING legal liability. business clients. His firm, The If a supervisor nonetheless feels Gertsburg Law Firm, is in Chagrin Providing creative legal solutions the need to be “friends” with an Falls.

GET DAILY NEWS ALERTS FROM CRAIN’S!

Register for free email alerts and ■ Real Estate Report: A weekly receive: guide to real estate news. Published Monday. ■ The Morning Roundup: The ■ day’s business news from Ohio’s Small Business Report: A daily papers weekly guide to small business news. Published Thursday. ■ Breaking news alerts ■ Shale and Energy Report: A ■ Daily headlines: Crain’s-produced weekly guide to the energy industry. news and blog items from the day Published Friday. ■ Dealmaker Alert: A weekly guide ■ Business Services | Education Law | Health Care Law | Work Force Report: A weekly on M&A trends and recent guide to help companies attract and Labor & Employment | Litigation Services | transactions in Ohio. Published retain the best talent. Published Wednesday. Cleveland | 216.781.1212 | walterhav.com Public Law | Real Estate | Tax & Wealth Management Tuesday. SIGN UP NOW AT: CrainsCleveland.com/register 20130819-NEWS--15-NAT-CCI-CL_-- 8/16/2013 10:22 AM Page 1

AUGUST 19 - 25, 2013 LEGAL AFFAIRS CRAIN’S CLEVELAND BUSINESS 15 BEST OF THE BLOGS

The following column appeared ment premi- in one of Crain’s free daily ums. In addi- It is now even more e-newsletters. To subscribe, go to tion, it is antici- important to cooperate tinyurl.com/ojjskm4. pated that the SharedWork with (the Ohio Department n July 11, Gov. John Ka- plan will cost of Job and Family sich signed into law a bill less for employ- Services) and provide the Join us at the 2013 Ingenuity Fest! modifying unemploy- ers due to reim- necessary information in a ment compensation Weisberg bursements Opractices and procedures. Two of from the federal timely manner. In some The 2013 Festival will take place on these changes will impact the way government until 2015. situations, it will be more September 20 – 22 at the docks on the lakefront north of employers in Ohio manage the un- During the two-year period, the prudent to consult with FirstEnergy (Browns) Stadium. employment application process. federal government will reimburse legal counsel as to how Ohio for SharedWork benefit pay- Nesco Resource is a proud corporate sponsor SharedWork Ohio ments. These benefit payments and when to respond to The first change allows employ- will, therefore, not be charged to these requests. of this celebration of ers to reduce workers’ hours while employer’s accounts. Cleveland’s Art and Technology community. permitting the workers to collect It’s important to note that the Now, if an employer engages in unemployment compensation program will not occur automati- a pattern of failing to timely or ad- Nesco Resource is Cleveland’s largest national staffing benefits. Twenty-five other states cally. Employers must take affir- equately respond to these re- have already adopted similar pro- mative steps to participate in quests, the employer’s account firm. Our award winning services can help you improve grams. SharedWork Ohio plan. will not be credited if OJDFS de- your overall staffing experience and your bottom line. Under SharedWork Ohio, an cides that it erroneously paid un- New penalty for employer’s employee can continue working employment benefits to a www.nescoresource.com www.talentalley.com with reduced hours rather than failure to cooperate claimant. being laid off and also collect un- with ODJFS As a result, in general, it is now employment benefits to make up The new law allowing for the even more important to cooperate the difference for the hours that SharedWork Ohio plan makes oth- with ODJFS and provide the nec- were cut. This benefit allows the er changes to Ohio’s unemploy- essary information in a timely potential for employees to main- ment laws. One of the significant manner. In some situations, it will tain their existing health care and changes is that Ohio law will now be more prudent to consult with The retirement benefits. require an employer’s account to legal counsel as to how and when To qualify, participating em- be charged in the event the em- to respond to these requests. ployers must submit a plan to the ployer engages in a pattern of fail- If there are other issues and director of the Ohio Department ing to timely or adequately re- special circumstances giving rise of Job and Family Services spond to requests for information to the employee’s separation from NEO DealmakerDealmaker (ODJFS). The plan must be in lieu regarding a claim, thus resulting in employment, legal counsel should of layoffs and cannot exceed the an improper overpayment. be sought before taking any other ■ total unemployment cost of a tra- In the past, for various reasons, action. ditional layoff. many employers opted not to pro- SPECIALSP EDITORIAL FEATURE Legislators who support this vide information to an initial or Patricia F. Weisberg is a partner at measure believe that the program subsequent request from ODJFS Walter & Haverfield LLP in Issue date: September 2 will be less costly for employers. regarding a former employee’s Cleveland. Her areas of practice They argue that traditional layoffs application for unemployment include employment and labor Ad close: August 22 often result in higher unemploy- benefits. law, and litigation services.

ON THE WEB: To view a photo gallery from last week’s HR Leaders awards gala, go to tinyurl.com/qzvjztr COMING UP Crain’s seeks nominations for 2013 General Success Depends on Navigating Complexities & In-House Counsel Awards

Crain’s Cleveland Business is ■ Privately held company seeking the best legal minds ■ Nonprofit organization representing Northeast Ohio’s ■ Government entity public, private, nonprofit and ■ Rising Star government organizations. Consideration will be given to the Nominations are open for the following factors: leadership; 2013 General & In-House Counsel business strategy achievement; Awards. The nomination deadline is protection of company interests; 5 p.m. on Friday, Sept. 13. governance/compliance; notable Awards will be presented to legal achievements; and individuals serving small, medium community/volunteer efforts. and large enterprises in the Refer nomination questions to following capacities: Michelle Sustar at 216-771-5371 ■ Publicly held company or [email protected].

■ Crain’s on Twitter: @CrainsCleveland ■ Crain’s on Facebook: Facebook.com/CrainsCleveland ■ Crain’s on LinkedIn: linkedin.com/company/crain’s-cleveland-business ■ Crain’s daily e-newsletters: CrainsCleveland.com/register

Member If your business needs up to I ,* ) Taft attorneys develop innovative solutions to help our clients reach their goals, $250,000 even in the most complex situations. Ask about our MATRIX EXPRESS loan*

216.359.5597 200 Public Square / Suite 3500 / Cleveland, OH 44114 *Great interest rates & most current terms are available, subject to credit approval & program terms (216) 241-2838 / www.taftlaw.com 20130819-NEWS--16-NAT-CCI-CL_-- 8/16/2013 10:17 AM Page 1

16 CRAIN’S CLEVELAND BUSINESS LEGAL AFFAIRS AUGUST 19 - 25, 2013 EARNING ‘A GOOD NAME’ Disputing: Mediation aids relationships Mediation is not new. Its populari- creates happy litigants, and happy continued from PAGE 11 years, local mediators and attor- the Cleveland bar’s alternative dis- ty has ebbed and flowed throughout litigants are great for attorneys. I neys say, and mediation’s empha- pute resolution section became an the years, according to the Ohio Me- think, in a community sense, it’s Unlike arbitration, in which an sis on parties coming to their own actual section rather than a com- diation Association’s James Petas, wonderful when you can resolve a arbitrator or panel doles out a bind- agreement is attractive to compa- mittee, Mr. Wachter noted. and there are pioneers who can be problem and change the energy of a ing ruling, mediation does not en- nies that are locked in discord with Nationwide, the American Bar credited with giving the process its conflict between people. I think that tail a mediator dictating what the someone they don’t want to alien- Association’s Dispute Resolution “good name,” said Peter J. Krembs, resonates.” sides must do. Instead, if the parties ate completely. Section, which boasts 18,000 a Cleveland-area litigator-turned-me- Plus, others noted, mediation of- reach no agreement, they still may “Businessmen don’t like to sue members, has been one of the diator. ten involves counsel. pursue litigation. their suppliers or their customers,” fastest-growing sections of the as- “Lawyers like myself who have had “I hope to serve them (litigators),” “The concept with mediation is, said Mr. Krembs, who has litigated sociation, said David Moora, the 30 to 40 years of an advocacy prac- said Ron Isroff, who observed in his let’s get all of the important players for nearly 40 years and has found section’s director who noted, “We tice, where they’ve been an adver- final years of litigating that media- to the table at a much, much earlier the mediation marketplace quite do continue to see a large interest sary on one side of the dispute or an- tion was suggested in “virtually stage,” said Mark Wachter, chair of competitive since launching the in the increased use of mediation.” other and, like me, have taken every case. Those are the people the alternative dispute resolution Resolve and Move On mediation And the leader of the Ohio Medi- advantage of mediation ... they’ve who, in all likelihood, will call upon section for the Cleveland Metropol- services website with a partner. ation Association said he sees found that it is successful,” he said. me to act as a mediator in disputes itan Bar Association and member of “It (mediation) is a better way ... anecdotal evidence statewide of a “There are a lot of lawyers in Cleve- for which they are representing their the Pepper Pike law firm, Wachter to maintain control and relation- more recent uptick, both in a new land now that have established a clients.” Kurant LLC. “The popularity of it, I ships,” he added. “They’re not sit- court-connected mediation pro- meaningful mediation practice, which Two months into doing business think, has become greater because ting there letting someone else gram in Oregon, Ohio, and a re- is my goal. It just takes time. You as a one-man shop, Mr. Isroff has a the cost of litigation has become make the decision for them.” cently launched law firm in Toledo have to get your name out there.” mediation scheduled, another tenta- greater.” An increased number of busi- that specializes in mediation only. To that end, he’s upgrading his tively scheduled and one in discus- Cost of doing business ness contracts are being written to Association president James website and seeking to market him- sion stage, he said. Like Mr. Krem- require companies to mediate be- Petas expects the number of medi- self through organized talks with bs, he’s working to spread the word One reason for that escalating ex- fore litigating, too, and more ation practices to continue to trade associations. among lawyers that his business is pense is the amount of information judges — under pressure by the grow, driven by more awareness of Some attorneys distrust media- up and mediating. available electronically, Mr. Wachter Ohio Supreme Court to reduce the the process itself, and by judges. tion, maybe because they’re con- said. Discovery and the costs associ- “I think, overall, mediators are size of their dockets — are sending “Our cases are driven by the cerned that the more people who ated with it have climbed because getting better,” Mr. Isroff said. “I’ve cases to mediation, according to bench,” he said. “If somebody is use it, the fewer people who use liti- “no attorney wants to be caught off attended a few training courses and local attorneys. elected, and they believe in media- gators, Mr. Petas said. But, he guard,” Mr. Wachter explained. sessions in the past few months ... “More and more, you are seeing tion, we’re in great shape. thinks its growth is a positive for at- They “want to see every piece of pa- and the level of, the art of, media- these contracts that have these me- “The process kind of sells itself,” torneys and mediators alike. per, talk to every witness.” tion has increased. I think mediation diation provisions,” said Richik Mr. Petas added. “It sounds kind of “When you have a mediation, the The cost of mediation, which of- is more effective today than it was Sarkar, a member of McDonald touchy-feely, but it (mediation) is mediation agreement usually ends ten lasts a day or two, pales in com- years ago because people are bet- Hopkins LLC in the law firm’s Cleve- just a safe place to talk. That is ex- up in a resolution,” he said. “That ter at it.” — Michelle Park parison to the cost of litigation, which can languish for months or land office. “It’s an obligation that tremely rare in the legal system.” the parties have already agreed to. That’s one of the reasons lawyers “(In the) last two or three years, cite for the expansion of it: Unlike for sure, it’s been growing,” Mr. court proceedings, which are pub- Sarkar added. “People are looking lic, mediation is confidential. to minimize their legal costs. I’m “Anything that is said during the Cleveland seeing it in almost all of my cases. course of mediation cannot later 600 Superior Ave. East Before things even get started, we be used in litigation unless all par- try to figure out: Can we mediate ties agree that it can be used sub- 1600 Suite this dispute?” sequently,” Mr. Krembs said. Cleveland, Ohio 44114 “They (the parties) go into it Mediation movement Phone: 216.830.6830 with no fear that what they say is going to come back and bite them Fax: 216.830.6807 The escalating popularity of mediation is evident not only in the in the fanny,” he added. number of professionals offering Another plus for mediating, ac- it, but also in the increased mar- cording to Mr. Krembs, is having keting of it, the number of groups the power to choose a mediator organized around it and more law who has some expertise in a par- school curricula that teaches it, ticular type of dispute. To the con- mediators and attorneys say. trary, litigants can be assigned a Collective Experience. “There was a perception in the judge who’s unfamiliar with legal business community (that it) was- statutes relevant to their case, he n’t really very good for big busi- asserted. Collaborative Culture. ness, that all arbitrators and medi- And even if mediation fails, par- ators did was come to simple ties tend to emerge from it with a compromises,” said the local bar’s better feel for what the core of the Creative Solutions. Mr. Wachter. “It’s taken some dispute is, he noted. time, but many of these industries “Even though you don’t settle it, are starting to recognize that that’s you know what you’re up against,” not the case.” Mr. Krembs said. “To learn that early It was only in recent years that in litigation is as valuable as gold.” ■ Beyond legal advice – it’s about business solutions. We understand our clients’ goals and challenges

and recognize the important details and nuances Regional Philanthropic Opportunitiess that infl uence business and legal outcomes. Crain’s 1st annual Giving Guide, a special advertising supplement to Crain’s Cleveland Business, will debut in the Dec. 2 issue. SPONSORED BY:

Q Business, Corporate Q Estate, Succession Q Labor & & Securities Planning & Probate Employment Reach the Right Audience

Q Administration Business Q Litigation · 150,000+ business executives in print and online Restructuring, Q Health Care Bankruptcy & Q Real Estate · The average net worth of a Crain’s reader is $1.41 million Q Insurance Recovery Commercial Law Q Tax - Business & · 92% donate and/or volunteer Q Environmental Q Intellectual Property Corporate Contact Nicole Mastrangelo at 216.771.5158 or [email protected] for more information Cleveland Q Akron Q Avon Q www.brouse.com 20130819-NEWS--17-NAT-CCI-CL_-- 8/16/2013 10:15 AM Page 1

AUGUST 19 - 25, 2013 LEGAL AFFAIRS CRAIN’S CLEVELAND BUSINESS 17 Wellness: Biggest changes involve incentives, reasonable alternatives

continued from PAGE 11 For instance, in activity-only prove their health can earn re- Jim Pshock, CEO and founder of programs, employees might be wards even if they aren’t quite Bravo Wellness in Cleveland, asked to participate in a walking “there” yet. which designs, coordinates and program but they don’t have to “What we are seeing being administers wellness programs for achieve a specific goal. In an out- adopted as the best practice is to close to 300 companies, said he come-based program, employees set progress goals or improvement has very few clients who are able to may be rewarded for keeping their goals instead of just straight pass- renew their 2014 wellness plans total cholesterol number under or-fail metrics,” Mr. Pshock said. with no changes. 200. “Our standard client who two “We are completely entrenched Julia Ann Love, also a partner in years ago may have said you can in changing employee communi- the employee benefits and execu- earn $50 per paycheck if your BMI cations now and making sure tive compensation practice group is under 30, are now saying you screenings are done consistently at Thompson Hine, said there are can earn $50 per paycheck if your and that everyone is given ade- several things a wellness plan BMI is under 30 or if it’s two points quate notice of their rights to an al- needs to do in order to satisfy the less than last year.” ternative if a company is saying its new regulations, but the two most Messrs. Carr and Pshock said premium contributions are going significant changes involve incen- the companies they work with that to vary based on (an employee’s) tive amounts and reasonable alter- already have committed to out- blood pressure, cholesterol, BMI natives. come-based incentives are staying and tobacco use,” he said. Currently, an employee’s reward on their current wellness course. CONTRIBUTED PHOTO for satisfying a wellness program “The overall intent of these Alternative arrangements The Great Lakes Brewing Co. encourages its staff to participate in wellness pro- cannot exceed a 20% discount off regulations, when you boil it grams. Here, employees are shown at the 2013 Ohio City Run & Crawl. The new rules have clarified the premium cost of coverage. down and what the government what employers can do to lower That percentage discount was participatory wellness programs individual doesn’t) satisfy the al- has really said is they want to health insurance costs and set increased to 30% under the Afford- — discounted gym memberships, ternative until halfway through the make sure that individuals forth significant changes, the first able Care Act, except for tobacco health fairs and health education year, the employer has to go back weren’t necessarily just being risk of which outlines three distinct cessation programs, which can re- — that they offer to all employees and apply incentives retroactively rated so we weren’t just shifting categories of wellness programs: ceive an incentive up to 50%, Ms. because they can easily satisfy the if they achieve their goals within more premium to somebody participatory; health-contingent Love said. If certain circumstances federal regulations and not worry the plan year,” she said. because they had a higher BMI or activity-only; and health-contin- make it unreasonably difficult or about wellness compliance issues. Indeed, the new rules do adopt a higher blood pressure,” Mr. gent outcome based, said Karen D. inadvisable for individuals to com- “Because one of the things that more of a journey rather than des- Carr said. “They wanted individu- Youngstrom, partner in the em- plete the program, an employer is causing a lot of concern in the tination approach to wellness, es- als to also be rewarded if they must provide a reasonable alterna- ployee benefits and executive employer community is the final tablishing a structure in which were working toward a health tive to earn a reward. compensation practice group at regulations make it clear that if (an employees who take steps to im- status.” ■ Thompson Hine. “So you can’t make a pregnant “There is some confusion out woman do a walking program if there because a lot of employers that would be dangerous for her in don’t understand exactly what her condition or you can’t make a type of wellness program they hemophiliac take a blood draw to have, such as a participatory ver- determine their blood cholesterol sus health contingent,” she said. “I level,” she said, adding that em- have heard a lot of employers say ployers also must publicize that CREATING VALUE that they have a participatory plan reasonable alternatives are avail- (open to all employees), but actu- able. ally it is health contingent because All about the journey SO YOU CAN you have to achieve an outcome. The terminology isn’t really well The issue of reasonable alterna- understood.” tives has many employers who GROW TO A participatory wellness pro- were considering implementing gram is open to all employees re- more aggressive wellness plans gardless. This program has the shelving the idea for another year NEW HEIGHTS least amount of legal risk for an or two, Mr. Carr said. employer but also nets the least “In the past we’ve had great suc- Clients demand value. amount of return in terms of em- cess with our clients in the out- Your bottom line matters, and ployee wellness, Ms. Youngstrom come-based incentives around we strive to provide the best possible services for your said. biometrics (blood pressure, cho- The new terminology splits lesterol, BMI). We have seen fewer money. Watch your business thrive and grow to new health-contingent wellness plans groups that want to take that on into activity-only programs and now because of the complexity heights when you invest in our experienced team. outcome-based programs that in- around this. The alternatives have volve an employee earning a re- been their main concern,” he said. ward or incentive if he or she satis- Ms. Love agreed, saying that fies a particular health standard. more companies are staying with

1375 East Ninth Street One Cleveland Center, 9th Floor Cleveland, OH 44114 216.623.0150

CHICAGO · WASHINGTON, D.C. · CLEVELAND · TOLEDO · AKRON · COLUMBUS · CINCINNATI ORLANDO · FORT MYERS · NAPLES · FORT LAUDERDALE · TALLAHASSEE · NEW YORK

RALAW.COM ROETZEL & ANDRESS, A LEGAL PROFESSIONAL ASSOCIATION 20130819-NEWS--18-NAT-CCI-CL_-- 8/16/2013 1:41 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013

in Cuyahoga County communities WCPN-FM, 90.3, which is part of such as Bay Village, Euclid and West- ideastream, to operate multiple Media: TV has big advantage in video lake that border the traditional cover- over-the-air channels. So, they can age areas of his two newspapers. broadcast separate channels for continued from PAGE 1 and sophisticated than a website over the last six months in anticipa- Mr. Sudbrook said last week the music and educational program- “Our bread and butter is video such cleveland.com that is grounded tion of the growing battle with The papers have been running in-paper ming, leaving more time available and the digital platforms are be- in text and still photography. WEWS, Plain Dealer and cleveland.com for promotions that say, “Yes, we’re still on their prime channels for news coming more and more video-cen- for example, also streams video live online readers, said Bill Applegate, home delivered seven days a week” and public affairs. tric,” said Greg Easterly, general across its digital platforms. Ms. vice president and general manag- and has received calls asking about Ideastream recently merged with manager of WJW-TV, Channel 8. Manuel said the live stream of the er of the two stations. home delivery. However, he couldn’t Civic Commons, a regional online “That plays to our advantage if we sentencing of kidnapper Ariel Castro “We will compete just as when say how many of the net increase of public affairs forum. Civic Commons’ do our job well.” had more than 500,000 views. they were hard print,” said Mr. Ap- 150 subscribers at each newspaper move to ideastream’s home at the Jill Manuel, news director at Television stations also can plegate, who started his media ca- in just the first week of August were Idea Center in downtown Cleveland WEWS-TV, Channel 5, said her sta- cross-promote their content better reer as a newspaper reporter in Ft. conversions of PD readers. will expand the broadcaster’s online tion’s owner has invested heavily in than newspapers. Not only do they Wayne, Ind. “It just shifts to differ- The two newspapers also are im- news and public affairs footprint. building digital platforms, includ- have larger audiences than news- ent platforms, online and mobile.” proving their websites with more Jerry Wareham, president and CEO ing mobile apps for news, weather papers, they can use their broad- Fit to print video and additional reporting, Mr. of ideastream, said the move to com- and traffic. WEWS is owned by E.W. casts to tout their websites to view- Sudbrook said. bine with Civic Commons was not re- Scripps Co., which has a long histo- ers, especially those multitaskers Other daily newspapers are ad- “We’re trying to give (readers) new lated to the changes at The PD, but he ry owning both newspapers, in- who watch television news and surf vancing into PD territory by adding reasons to come to our websites,” he recognizes his organization must cluding the former Cleveland Press, the web at the same time. coverage and subscribers where said. “We’re all trying to drive more adapt to compete for the attention of and television stations. “That’s the strength of what we their traditional territories meet. traffic and more unique visitors.” public affairs consumers.“What we’re In addition to broadcast re- do,” Mr. Easterly said. “We’re trying Suburban dailies are competing The Akron Beacon Journal also is trying to do here is aggregate pro- porters and videographers who to be available when and where online as well, but they also com- moving onto the PD’s turf. In July, it grams that apply technology to edu- contribute online, the station has consumers need us, and that’s a pete more directly in print because, said it would begin seven-day home cation and public service in a way six staffers focused solely on digital great opportunity for businesses unlike The PD, they still will deliver delivery to Brecksville, Broadview they can share resources and do a platforms; that team includes a so- who want to advertise.” a newspaper to subscribers’ homes Heights, Brunswick, Hinckley, North better job for the community,” Mr. cial media producer. WJW also has added a 4 p.m. seven days a week. On Aug. 5, The Royalton and Strongsville. Editor Wareham said. “Broadcast channels are still the newscast to its broadcast schedule PD stopped home delivery on Mon- Bruce Winges referred a reporter to At WKSU, classical music was re- primary source of revenue for tele- to beef up its news offerings. days, Tuesdays and Thursdays. publisher Andrea Mathewson, who moved from the weekday schedule vision stations,” Ms. Manuel said. The combined news operation Those days, the paper is available did not return three telephone calls in favor of several new hours of “But digital is a growing piece of the that serves television stations WOIO only at news boxes and retailers. by Crain’s deadline last week. news and talk programming. revenue picture. We know you’ve and WUAB — Channels 19 and 43, Jeff Sudbrook, president and pub- News in the public space “There is a strong demand for got to create products for people respectively — has been running lisher of The Morning Journal in Lo- news in the public radio space and wherever they are.” spots reminding viewers of the rain and The News-Herald in Lake Even the area’s public broadcast- we wanted to respond to that,” said changes at The PD and inviting them County, said both papers have picked Big self-promoters ers are getting in on the competi- Dan Skinner, the station’s executive to do choose 19actionnews.com up a modest number of subscribers tion. Although station executives director, who described his news Another advantage for television over cleveland.com. in Cuyahoga County in recent weeks. said the timing was coincidental, operation’s use of text, audio and stations in the digital realm is their More substantively, it has added In April, he told Crain’s the newspa- both WKSU-FM, 88.7, in Kent and video online as a convergence. use of video, which is more extensive at least five online news producers pers were bolstering news coverage ideastream in Cleveland have “We’re not just a radio station in bulked up their news and public af- terms of the way we distribute our fairs offerings. product,” Mr. Skinner said. “We’re Changes in the way radio is shipping it out in all the ways it broadcast allow both WKSU and makes sense.” ■ Great: Biz keeps growing

Jacobs Real Estate Services LLC, continued from PAGE 3 risen 32% this year from 2012 levels, as owner’s representative, is pleased to announce the transfer of “We are thrilled to have them and overall store sales are up about coming to town,” said David 25%. While Mr. White declined to Schroedel, director of economic de- share the company’s revenue, he said velopment for Broadview Heights. Great Day as of June 10 of this year al- Great Day plans to shrink the park- ready had matched 2012 revenue. ing lot, plant trees and grass, and The hard sell better align the entrance and exit with the traffic light leading into a The company has about 500 em- 31 additional acres shopping plaza across the street, ployees, with about 60 at Central Mr. Schroedel said. Aluminum, 135 in the Cleveland at This is just the latest expansion area and the rest at the 23 compa- for Great Day, which has been buy- ny-owned stores from Detroit to ing up Ohio manufacturers since Baltimore. Mr. White expects Great Avon Crossing East February 2010, starting with alu- Day to continue to grow. He said the minum extruder Central Aluminum company always is looking to acquire to the Co. in Columbus. more businesses, especially those Mr. White said the original plan with products in home improvement was to buy distressed companies to that can be made in the 150,000- turn around through its parent square-foot plant in Macedonia. company, GDIC Group LLC. After Bill Goddard, the company’s vice the second deal, though, a different president of sales, said Great Day plan fell into place. Great Day has a focus on “quality and value, bought Patio Enclosures in January rather than price.” Products are 2011, setting its sights on becoming custom-made at the plant in Mace- a home improvement company and donia per customers’ specifications. changing its name from GDIC Man- Mr. White said while Great Day of- agement Services LLC to Great Day fers Stanek, Patio Enclosures and Improvements. SoftWall products, it also contracts The purchase of SoftWall Finish- with other companies to offer coming Systems, a producer of interior plementary services, such as concrete finishing, followed in fall 2011, with work. Those arrangements allow the the acquisition of the Stanek Win- company to be a one-stop shop for dows product line coming last Jan- home improvements, he said. uary. The manufacturing lines, Mr. Goddard said the individual aside from the aluminum business, brands come first for Great Day in were consolidated in Macedonia, its marketing. A local marketing pres- and many of the Stanek and Patio ence is important, and Mr. Goddard Enclosures employees were re- said local branch managers have con- tained.In the past two years, Great trol over the advertising in their re- For information on additional land available, call Day has more than doubled the gions. Mr. White said the approach of number of company-owned stores giving local managers more autono- Joe Stewart or Scott Fatzinger at 440-871-4800 to 23 from 10 by acquiring some my over advertising has been an evo- franchisees and reopening stores lution over time, but there’s a big push that had been closed by the previ- for it this year at the company. www.JRESgroup.com ous companies, Mr. White said. The There are even incentives for any new Broadview Heights store will be employee who brings in a sale, regardless of their job title. JRES is a fully integrated third-party commercial real estate ﬁ rm providing: Great Day’s largest yet, and will serve as a model for future stores in “It doesn’t matter what your job property management • leasing • development and planning • brokerage services • construction management other markets, Mr. White said. is: you’re a salesman in our compa- He said sales for sunrooms have ny,” Mr. Goddard said. ■ 20130819-NEWS--19-NAT-CCI-CL_-- 8/16/2013 1:42 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 Value Place will build $6 million inn at Emerald Corporate Park By STAN BULLARD properties in Northeast Ohio. and the hotel will charge about $239 last Friday, Aug. 16, with a single pro- hotel’s opening for January if it be- [email protected] Luke White, a real estate analyst for a one-week stay. Some of its lo- viso. As Value Place has changed its gins work soon. at Wichita-based Value Place, said cations go for as little as $169 a week. exterior finishes and colors since the Mr. White said Value Place is ex- Value Place, a deep discounter the company is excited about the The chain is known for a one- city’s Far West Design Review Com- panding again nationally after re- among national extended-stay ho- two-acre site near Grayton Road price policy: Customers pay for a mittee approved the plan, the com- ceiving a $100 million private equi- tel chains, plans to build a 124-unit because it has visibility from Inter- week even if they want to stay for a mission told the hotel operator’s ty investment by Lindsay Goldberg inn at Emerald Corporate Park on state 480 and is near Cleveland single night in order to keep its fo- consultants they can proceed with LLC of New York. Under its recent- the far West Side of Cleveland at a Hopkins International Airport. cus on long-term customers. the plan if the Far West committee ly updated designs, Value Place cost of more than $6 million. The four-story building will be Cleveland City Planning Commis- approves the new exterior design. added flat- screen TVs, wood-look The chain also may build more corporate-owned, Mr. White said, sion approved Value Place’s plans The company is projecting the flooring and better beds. ■ HIGHEST PAID PROFESSIONAL ATHLETES RANKED BY SALARY AS OF CURRENT OR MOST COMPLETE SEASON

Contract length Years - in Rank Name, age Team Salary Contract terms (years) Position league College 1 Nick Swisher, 32 Cleveland Indians $11,000,000 $56,000,000 4 first baseman 9 Ohio State 2 Joe Thomas, 29 Cleveland Browns $10,000,000 $80,500,000 8 tackle 7 Wisconsin 3 Anderson Varejao, 30 Cleveland Cavaliers $8,368,182 $48,300,000 6 center 9 N/A 4 Chris Perez, 27 Cleveland Indians $7,300,000 $7,300,000 1 pitcher 5 University of Miami 5 Michael Bourn, 30 Cleveland Indians $7,000,000 $48,000,000 4 center fielder 7 Houston 5 Brett Myers, 32 Cleveland Indians $7,000,000 $7,000,000 1 pitcher 10 N/A 7 Joe Haden, 24 Cleveland Browns $6,936,429 $42,737,166 5 defensive back 3 Florida 8 Asdrubal Cabrera, 27 Cleveland Indians $6,500,000 $16,500,000 2 shortstop 6 N/A 9 Luke Walton(1), 33 Cleveland Cavaliers $6,091,363 $30,291,363 6 forward 10 University of Arizona 10 Ahtyba Rubin, 27 Cleveland Browns $6,000,000 $26,500,000 4 defensive tackle 6 Iowa State 11 Ubaldo Jimenez, 29 Cleveland Indians $5,750,000 $10,000,000 4 pitcher 7 N/A 12 Justin Masterson, 28 Cleveland Indians $5,678,500 $5,678,500 1 pitcher 5 San Diego State 13 Kyrie Irving, 21 Cleveland Cavaliers $5,375,760 $16,127,280 3 guard 2 Duke 14 Daniel Gibson(1), 27 Cleveland Cavaliers $4,792,332 $21,000,000 5 guard 7 Texas 15 Marreese Speights(1), 26 Cleveland Cavaliers $4,200,000 $11,896,095 5 forward 5 University of Florida 16 Tristan Thompson, 22 Cleveland Cavaliers $3,894,240 $11,682,840 3 center 2 Texas 17 Alex Mack, 27 Cleveland Browns $3,732,000 $14,600,000 5 center 5 University of California 18 Dion Waiters, 21 Cleveland Cavaliers $3,726,600 $7,620,840 2 guard 2 Syracuse 19 D'Qwell Jackson, 29 Cleveland Browns $3,600,000 $42,500,000 5 linebacker 8 Maryland 20 Alonzo Gee, 26 Cleveland Cavaliers $3,500,000 $9,750,000 3 forward 3 Alabama 21 Joe Smith, 29 Cleveland Indians $3,150,000 $3,150,000 1 pitcher 6 Wright State 22 Drew Stubbs, 28 Cleveland Indians $2,825,000 $2,825,000 1 outfielder 4 Texas 23 Davone Bess, 27 Cleveland Browns $2,633,334 N/A 3 wide receiver 6 Hawaii 24 Omri Casspi(1), 25 Cleveland Cavaliers $2,277,306 $6,040,746 4 forward 4 N/A 25 CJ Miles, 26 Cleveland Cavaliers $2,225,000 $4,450,000 2 guard 2 N/A

Wayne Ellington(1) University of North 26 , 25 Cleveland Cavaliers $2,083,042 $5,319,442 4 guard 4 Carolina 27 Desmond Bryant, 27 Cleveland Browns $2,000,000 $34,000,000 5 defensive end 5 Harvard University 28 Mike Aviles, 32 Cleveland Indians $1,750,000 $6,000,000 2 infielder 5 Concordia

Matt Albers San Jacinto Community 28 , 30 Cleveland Indians $1,750,000 $1,750,000 1 pitcher 7 College 30 Tyler Zeller, 23 Cleveland Cavaliers $1,563,120 $3,196,560 2 center-forward 2 North Carolina 31 Jason Campbell, 31 Cleveland Browns $1,500,000 $3,750,000 2 quarterback 9 Auburn 32 Shawn Lauvao, 25 Cleveland Browns $1,323,000 $3,300,000 4 guard 4 Arizona State 33 Trent Richardson, 23 Cleveland Browns $1,321,354 $20,489,796 4 running back 2 Alabama 34 Phil Taylor, 25 Cleveland Browns $1,110,750 $8,093,250 4 defensive tackle 3 Baylor 35 Marc Rzepczynski, 27 Cleveland Indians $1,100,000 $1,100,000 1 pitcher 3 California-Riverside 36 Lou Marson, 27 Cleveland Indians $1,000,000 $1,000,000 1 catcher 5 N/A 36 Rich Hill, 33 Cleveland Indians $1,000,000 $1,000,000 1 pitcher 4 University of Michigan 36 Scott Kazmir, 29 Cleveland Indians $1,000,000 $1,000,000 1 pitcher 8 N/A 36 Chris Owens, 26 Cleveland Browns $1,000,000 $1,000,000 1 cornerback 5 San Jose State

Ryan Raburn South Florida Community 36 , 32 Cleveland Indians $1,000,000 $1,000,000 1 outfielder 5 College Source: Information from www.nba.com, www.espn.com, www.clevelandbrowns.com, cleveland.indians.mlb.com, www.baseballprospectus.com, www.spotrac.com, RESEARCHED BY Crain's staff. www.hoopshype.com. Crain's Cleveland Business does not independently verify the information and there is no guarantee these 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. (1) Not on the 2013-2014 roster. 20130819-NEWS--20-NAT-CCI-CL_-- 8/16/2013 2:02 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 19 - 25, 2013 Drawing: RDL Architects estimates 75% of its work is national

continued from PAGE 3 a reawakened hotel market. For ex- Architectural firm owners also He isn’t alone. As the architecture ample, it is at work on big-ticket note unemployment among build- business has revived and several renovation projects ranging from ing designers remains high. GPD firms have resumed hiring in a sig- the Embassy Suites in Beachwood Group’s Mr. Kotecki said last year nificant way this year, many North- to a 50,000-square-foot ballroom at he received 75 resumes for any ar- east Ohio firms are finding much of the Dallas Renaissance Hotel and a chitecture opening; he now has 50 their work outside the region. substantial renovation of the 500- for one in Columbus. room Hyatt Regency Cincinnati. It’s a situation that had Paul On the homefront … Voinovich, a principal in the Vocon After the megaprojects Inc. architecture firm in Cleveland, The improving — but still-slim returning last week from a business On the flip side, completion of — prospects for future work in trip to London, where he worked downtown Cleveland megaprojects Northeast Ohio are such that many with a design partner on landing such as the Global Center for local architects again are critical of commissions across the pond. Health Innovation and Cleveland major local commissions going to Paul Westlake, managing princi- Convention Center is impacting lo- out-of-town firms for clients crav- pal of Westlake Reed Leskosky in cal firms that won pieces of those ing celebrity. Cleveland, oversees a firm that just plum assignments. RDL Architects’ Mr. Lloyd freely added to projects in China its first At the Cleveland office of con- discusses the problem, which project in Africa. That job is an as- CONTRIBUTED PHOTO struction and engineering giant many local architects only air in signment from global contractor A look at a conference room at mbi | k2m’s Cleveland headquarters. URS Corp., which served as the private. Bechtel Corp. to build a $40 million construction architect for the con- “I’m really disappointed in insti- public plaza, banquet and confer- In Shaker Heights, architect Akron-based GPD Group, which vention center and designed the tutions that feel they have to go to ence center in Liberville, Gabon, for Ronald Lloyd estimates 75% of the does architectural, engineering and new, 23-story Ernst & Young Tower Uruguay for architectural services,” the 2015 meeting of the African Na- work at his RDL Architects Inc. is planning work, said the regional in Cleveland’s Flats, its design staff Mr. Lloyd said. “There is great tal- tional Congress. national. RDL added five people market is changing, and not all for has dropped with four departures, ent here, wonderful architects. You Northeast Ohio architects eager to this year to bring its staff to 25, with the best. He said spending on including the are starting to see a little of it in the grow after the long real estate down- about half the hires holding archi- school work, which maintained long-planned work they are getting elsewhere.” turn generally do so with a big slice tecture licenses. many firms through the downturn, exit Aug. 9 of Favoritism for the outside expert of work from out of town on top of “If you’re a local outfit that wants is starting to slow. creative director factors into Mr. Diehl’s decision as their diet of local assignments. With to survive on local activity, you “But we’re seeing an uptick, pri- Christopher well. the local construction market con- might have challenges, although marily from the private side of the Diehl by mutual “There is less opportunity for strained by a lack of population and things are picking up here,” said business,” Mr. Kotecki said. “There agreement. someone like me in the region,” Mr. business growth, they seek more ro- Mr. Lloyd, the firm’s president and is a lot of private money out there Dana Diehl said. “We hire a lot of outside founder. “We have several projects now. It is really just business re- Mitchell, the firms as our design help. I applaud bust building environments in Diehl which to apply their specialties, con- in Texas and Virginia.” sponding to a better economy.” Cleveland-based that in the right situation. It’s a fun- nections and design talent. As RDL weathered the recession Mr. Kotecki noted the big hits re- office manager of URS’ Akron, ny thing: to know we have quality, Debbie Donley, founding princi- and kept its staff intact with a tailers sustained in the recession Cleveland and Toledo offices, said we go shopping for it elsewhere. pal of Vocon, said her firm would be plethora of multifamily low-in- created a “double whammy” for his company is chasing a proposed, There is a feeling that if you buy lo- “much smaller” if it based its busi- come housing projects in multiple designers who did commercial 600-plus room hotel tied to the cal, you get what you get. We need ness plan on local work. Instead, Vo- states, it also positioned itself for work for individual retail chains as Cleveland convention center “for to buy local and demand a lot.” con targets work for large compa- work in the commercial, residential well as shopping center owners. sure, but I see the market slowing Vocon’s Ms. Donley dismisses nies that want to align their physical and senior-living sectors to immu- The rebound in retail is particular- down a little.” such concerns as “sour grapes.” operations with their strategic busi- nize itself from future downturns. ly noticeable, he said, as GPD is Mr. Diehl, who has taught as well She noted her firm learns when it ness needs, she said. As a result, it Now, to Mr. Lloyd’s pleasant sur- seeing more construction projects as practiced architecture, said he partners with larger firms, and she works across all 50 states. prise, all three practices are busy. for big-box and smaller retailers; knew the market would soften in and her brother, Paul Voinovich, Ms. Donley estimates 60% of Vo- “In the last three months, com- renovation work from filling empty the region after the convention take losing to an out-of-towner as a con’s revenues are in town and 40% mercial has really picked up,” Mr. stores first surfaced last year. center was built, and that his exit message to work harder. across the nation. She said Vocon Lloyd said. He said part of that in- Other contributors to the im- “would help URS and help me.” Mr. Maloney of mbi | k2m sees it “very cautiously” added six people, crease is from a rise of apartment proved prospects for architects are Mr. Diehl said that at 51 he wants pragmatically. He used the real es- three of them registered architects, projects as demand for rental prop- designs for new corporate head- to “bite into big and interesting tate downturn to build business re- in the last 90 days to take its staff to erties surges across the nation, quarters, plans for new hospitals in work” and is interviewing in Chicago, lationships in Northeast Ohio and 100. Vocon’s quest to grow outside though renewed activity by shop- the region, a rejuvenated office Dallas and San Francisco for what he beyond for the moment when the the region meant it added 20 regis- ping center developers and retail- leasing market, and more senior calls his “next great chapter.” He ac- spigot for construction spending tered architects with the acquisi- ers also helps. housing projects. knowledged, “It’s the wrong econo- opened again. He said his persever- tion of Conant Architects of New So long, double whammy In mbi | k2m’s case, it benefits my to pursue the dream of every ar- ance is easily explained, noting, “I York City in a transaction it an- from renewed high-end home chitect and hang out your own never wanted to do anything else nounced last week. Darrin Kotecki, president of building in Key West and feasts on shingle to stay in Cleveland.” but run an architecture firm.” ■ 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

AUCTION LAND COMMERCIAL BUSINESS SERVICES PROPERTY Sept 7 @ 12:00 NOON Brecksville Save $ on out-of-state How Safe Are Your Forklift Tires? Want to Buy or Sell a Business 832 E 200 St Cleveland 2.6 acres zoned business travel! We can install new cushion, Free Seller Market Analysis Sept 14 @ 12:00 NOON motorist-retail by I-77 BANKRUPTCY SALE non-marking & pneumatic tires 29250 29106 LakeShore Blvd Interchange and Miller Rd. Subject to Bankruptcy Court Approval Former Cle native and at your place of business. See our listings at Willowick Used forklifts, all makes. Central to proposed major Offers now being considered Sales Pro wants to www.empirebusinesses.com All Buildings used as Child development project. work with Cle-\Based Co. 216-641-STYS 5 Industrial Properties www.stysinc.com 440-461-2202 Care/Multi Use. Call for Terms Ideal for hotel, drug store, gas/ For Sale in w/territories for new Reilly Auctions convenience store, fast foods. OH, NJ, NY, GA & Canada or existing business in FL, 216-650-0886 (440) 539-5317 Carolinas. BUSINESS SERVICE OWNERS! E-mail for details [email protected] $895,000.00 Specialties Incl.mfg,Industrial, Submit your business card to promote your service and dental, trade show ops, more. receive a SUBSTANTIAL DISCOUNT off your ad price.

List your Auction, Industrial, 620 East Smith Rd, Medina, OH Steve – 941-276-2707, To find out more, contact Denise Donaldson at [email protected] 216.522.1383 Commercial, Luxury Property or Retail 93,884 sq.ft. on 5.83 acres s¬4REMENDOUS¬POTENTIAL¬ Space Here! s¬¬3TRATEGICALLY¬POSITIONED¬LOCATIONS¬¬ s¬¬2EADY¬FOR¬IMMEDIATE¬OCCUPANCY To place your Crain’s Cleveland Business’ classifieds will help s¬¬!DDL¬PROPERTIES¬AVAILABLE¬TO¬BE¬ you fill that space. SOLD¬INDIVIDUALLY¬OR¬AS¬A¬PACKAGE Crain’s Cleveland Business MUST SELL! Last Remaining Assets of Debtor! Contact Executive Recruiter ad GA Keen Realty Advisors Denise Donaldson at 216.522-1383 ¬s¬greatamerican.com/KEEN Call Denise Donaldson at 216-522-1383 20130819-NEWS--23-NAT-CCI-CL_-- 8/16/2013 1:57 PM Page 1

AUGUST 19 - 25, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS The beat goes on, bleachers in left field. Thomas Selden blasted MetroHealth last AUGUST 12 - 18 Mr. Adams knows not every fan likes what month for building in his hospital’s back- 40 years later he does. What he doesn’t get is all the atten- yard. ■ John Adams, believe it or not, has interests tion he has received. At the time, Mr. Selden told Crain’s, “I’m ir- The big story: Omnova Solutions Inc. may “I appreciate that someone would take ritated by the fact that this country’s cost of be exiting Fairlawn for Beachwood. The produc- that don’t involve the Cleveland Indians and his bass drum. the time to say hello,” he said. “But I’m just health care is being driven by overbuilding er of emulsion polymers and specialty chemicals Mr. Adams is a senior a guy cheering the team on. I never set out and construction. This is not McDonald’s said it’s considering building a headquarters in special technical archi- to do this for 40 years.” — Kevin Kleps versus Burger King, where you have McDon- Beachwood after two years of extensive analysis. tect for AT&T. He builds ald’s on one corner, then Burger King build- “Because our plans remain subject to various ing on the other.” — Timothy Magaw websites, he instructs a Build it, and they approvals at the local level, however, we contin- class (for which he does- ue to consider other possible locations in North- definitely will come Survey seeks to reveal n’t get paid) at Cleveland east Ohio,” Omnova said. The company said it ■ MetroHealth had hoped its new, $23 mil- State University on pathways to success would not provide details on the possible move lion health center in Middleburg Heights teaching behavior modi- ■ until it has a final agreement. Omnova said its would see, on average, about 250 patients A Shaker Heights research firm wants to fication and motor de- per day by the end of its first year in busi- find out what it takes for manufacturers to lease at 175 Ghent Road expires in late 2014. Adams velopment to the dis- ness. be successful — and to tell companies how abled, and he is By the numbers: Fifty-seven Park View Well, it didn’t quite take that long. While they compare to others. president of the Cleveland Blues Society. Federal Savings Bank employees will lose their its doors have been open a little more than The MPI Group, along with the American He’s busy, but he always — or almost al- jobs in layoffs that will begin Oct. 11, according a month, its November Family Health Cen- Small Manufacturers Coalition and the Asso- ways — finds time for the Tribe. to a letter sent to the state of Ohio by the Penn- ter in the southwest suburb is seeing about ciation for Manufacturing Excellence, is con- On Saturday, Aug. 24, Mr. Adams, 61, will sylvania company that’s acquiring the Solon- 400 patients a day. ducting its biennial Next Generation Manu- be honored prior to the Indians’ 7:05 p.m. facturing survey this month. The survey aims based bank’s parent. That number represents The unexpected — but welcome — surge game against the Minnesota Twins at Pro- to “take the temperature of U.S. manufactur- 30% of the 188 full-time-equivalent employees in activity isn’t necessarily because of curi- gressive Field. The occasion: His 40th year of ing” and identify paths to improvement from reported by PVF Capital Corp. as of the first ous patients looking to check out the neigh- banging his 26-inch bass drum during Tribe which others can learn, said John Brandt, quarter. The deal by F.N.B. Corp. of Hermitage, borhood’s latest health care digs, according games — a tenure in which he has been pre- CEO of MPI. He said they hope to get about Pa., to buy PVF is expected to close in October. to Dr. Akram Boutros, MetroHealth’s CEO. sent for all but 38 games. Instead, he suggested the rapid influx of pa- 1,000 to 1,500 participants. F.N.B. owns First National Bank, which sent the The Indians will have video tributes and a tients is evidence of pent-up demand for The survey covers six areas of interest, layoff notice to Ohio’s Office of Workforce pregame ceremony for Mr. Adams. He in- more health care services in the southwest- from human resources to supply chain Development. sisted on a twist for the latter. ern tip of Cuyahoga County. management. It gauges how aware manu- “The only thing I know (about the tribute) “There’s this notion by other providers in facturers are of trends and how successful Long-term helper: Torrey Pines Investment is they said, ‘Do you want to do anything on the area that we didn’t need to be there,” Dr. their efforts are. The aggregate results are in San Diego agreed to invest alongside Cleve- the field?’ I said, ‘Yeah.’ I told them I want- Boutros said. “Well, patients speak for published, like many surveys, but there is a land-based BioMotiv LLC for the next seven ed to get the first hit of the game, like I did themselves. If we didn’t need to be there, twist — participants also can receive a cus- years. Together, BioMotiv and Torrey Pines plan for my 3,000th game (in 2011). There’s a mil- why would they come?” tom report that compares their results to to finance the development of medicines that lion people who get to throw the first pitch. The “other providers” to which Dr. that of other companies. have yet to be tested in humans. Torrey Pines I want to get the first hit.” Boutros refers is Southwest General, the “It’s hard to get that kind of data any- committed to investing up to $20 million in pro- After he takes his cut in the batter’s box, dominant health care force in that part of where else,” Mr. Brandt said. jects financed by BioMotiv, though it wouldn’t he’ll assume his regular spot at the top of the the county. Southwest General’s CEO — Rachel Abbey McCafferty be obliged to join BioMotiv in any particular investment. BioMotiv recently raised $25 million from Nationwide Mutual Insurance Co. and several individual investors WHAT’S NEW BEST OF THE BLOGS Excerpts from recent blog entries on For the third straight year, the firm earned a Freeze!: A federal district judge froze the assets CrainsCleveland.com. spot on the publication’s list of “Best Law Firms of a Richfield hedge fund and its manager on for Women.” Aug. 13 — the same day the Securities and Ex- Numbers never lie Working Mother described the firms on the list change Commission sued for a temporary re- as those that are “leading the way in attracting, ■ straining order and other emergency relief, al- It’s a data-mad world, and more compa- retaining and promoting women lawyers.” leging that Anthony J. Davian misappropriated nies are expanding the C-suite with the ad- The magazine said 31% of Thompson Hine’s more than $1 million in investor money. Mr. Da- ditions of chief analytics officers, a position lawyers are women. The firm has an 18% rate of vian promoted Davian Capital Advisors LLC as Forbes.com says “transcends business female equity partners and a 28% rate of female a successful investment management firm man- groups and divisions.” nonequity partners. aging a portfolio of profitable hedge funds, “but One big player in the CAO movement is “Mentoring circles, professional development KeyBank. Davian Capital is nothing more than Davian’s COMPANY: Impact Armor programs and a business-leader luncheon series personal piggy bank,” the SEC alleged. Assets to “The bank had steadily increased its use help female associates advance here (this year, be frozen are those in at least 24 accounts listed Technologies, Cleveland of analytics over the course of several years, 25% of all new equity partners are women),” with teams embedded in various depart- in the order signed by U.S. District Judge David PRODUCT: Line of bulletproof Working Mother said. “New moms get 14 paid D. Dowd Jr. ments,” Forbes.com noted. “In 2012, the weeks off, plus special career guidance.” school safety products president of the Community Bank division Shopping spree: A DDR Corp. joint venture This is surely a sign of the times. decided to centralize the function in order The state of things formed with an affiliate of Blackstone Real Es- to institutionalize data-driven decision Impact Armor, which began in 2006 ■ Fortune profiled Mark making, and brought on David Bonalle as tate Partners VII L.P. closed on a deal to acquire as a producer of high-purity alumina ce- Kvamme — the California head of a centralized Client Insights func- for $332 million a portfolio of seven shopping ramics for use as strike faces in heavy venture capitalist-turned- tion.” centers totaling 2.4 million square feet. Beach- armor, for years has made products JobsOhio head-turned Ohio Mr. Bonalle’s role “started with leading wood-based DDR, a real estate investment trust that protect police officers and soldiers. venture capitalist — and his an Insights group that teams with all Com- that specializes in shopping centers, said the as- Now it’s using the technology to protect Drive Capital partner, Cincin- munity Bank departments including Risk,” sets are in Cincinnati, Los Angeles, Portland, San teachers and students, too. nati native Chris Olsen, who according to the story. The marketing team Diego and Washington, D.C. The purchase price The company says its new school have big plans in the Mid- also reports to Mr. Bonalle and “sits side- includes assumed debt of $207 million and $28 safety line includes a bulletproof desk- west. by-side with the Insights team.” Kvamme million of new mortgage debt. Blackstone owns top calendar, whiteboard and backpack Drive Capital, which This year, Mr. Bonalle’s responsibility ex- 95% of the common equity of the joint venture; insert “that can stop a bullet at point- recently announced investments in companies panded to include supporting the Corpo- a DDR affiliate owns the rest. blank range.” Products come in stan- from Columbus and Cincinnati, “already has rate Bank division, Forbes.com reported. dard sizes or can be custom-made, Im- raised $181 million for a debut fund that is He told the website that before KeyBank On notice: Canton-based Republic Steel was pact Armor says. targeting a total of $300 million,” Fortune cited by the U.S. Department of Labor’s All products are made of the same centralized analytics, it used to make a lot reported. Occupational Safety and Health Administration material as the company’s bulletproof of decisions by committee, with less focus The plan is to invest that money in tech star- for 24 safety violations that carry fines of $1.14 clipboards that police officers use to on the numbers. Now, everything is num- tups based in Ohio and other Midwestern states. million, the department announced in a protect themselves on the streets, as bers-based. “At the beginning I was working four days a statement that alleges the company has a “long well as Impact Armor door inserts that “People have to make their case in data week in Ohio and then flying back to San Fran- history” of violations. Fifteen willful violations of soldiers use for protection on the battle- terms,” he said. “We use analytics to force cisco, and had never considered starting some- OSHA’s fall protection standards were found at field against IED roadside explosive de- discipline in how to think about the right thing permanent here,” Mr. Kvamme told the the company’s Canton steel manufacturing vices, Impact Armor says. answers for our customers and for the bank. magazine. plant. Among them were lack of fall protection For information, visit: The data doesn’t lie.” “But it became clear that there were so many while working on runway girders that were 66 impactarmortech.com. great young companies here — particularly with feet above the ground, and falls of 30 feet due to Family ties the fundamental shift to the cloud — but once missing and damaged guardrails. Send information about new products to ■ Cleveland law firm Thompson Hine once they begin to grow they almost are required to managing editor Scott Suttell at ssut- again earned kudos from Working Mother find funding on the coasts,” he said. “We are [email protected]. magazine. coming into a very underserved market.” 20130819-NEWS--24-NAT-CCI-CL_-- 8/16/2013 3:40 PM Page 1