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CLEVELAND BUSINESS the Region’S Highest-Paid Foundation Page 39 Cfos Page 34 VOL. 39, NO. 34 AUGUST 20 - 26, 2018 Source Lunch Real estate Union Trust building could be home to condos. Page 2 Greg Malkin, fellow, The List Burton D. Morgan CLEVELAND BUSINESS The region’s highest-paid Foundation Page 39 CFOs Page 34 AT THE TABLE GOVERNMENT JobsOhio SIZZLING OUTDOOR SPACES likely will survive election But the group could soon get new leader By JAY MILLER [email protected] @millerjh It looks likely that JobsOhio,, the private-sector economic develop- ment nonprofit created by outgoing Gov. John Kasich, will survive in 2019, regardless of whether Demo- crat Richard Cordray or Republican Mike DeWine becomes the next gov- ernor. Both candidates issued statements indicating that they intend to keep the state's principal business attrac- tion organization outside of state government. The only question may be who will get to choose the nonprofit’s next leader: the current, nine-member The screened-in, outdoor kitchen at the Fredericks’ home in North Ridgeville includes a TV screen over the fireplace and a conversation pit, with a board, all named by Kasich, or the ceiling fan and heating units to temper air flow. (Peggy Turbett for Crain’s) board that will lead the organization after the new governor fills five seats Backyard cooking has gone high-end, and that have four-year terms that expire in July 2019? business for outdoor kitchens is booming John Minor, who became Jobs- Ohio’s president and chief invest- By JOE CREA with an electronic system to raise ment officer in July 2012, told Crain’s and lower screens if the flying pests he plans to leave the job, but he is [email protected] are too pesky. There’s a bar, TV vague about details. screens, a conversation pit, and both “I plan to leave JobsOhio at some Like legions of Clevelanders, Kevin ceiling fans and heating units to point, but I do not have a set time- and Mary Frederick call themselves maintain just the right degree of frame or a specific date,” he said in a foodies. They dote on fine dining, -en comfort. telephone interview. “The board and joy discovering new restaurants, love But that’s just where the fun be- I have had ongoing discussions about to cook at home and even have taken gins, at least for a cooking couple like succession planning relative to my cooking classes with Michael Symon. the Fredericks. role as leader of JobsOhio.” But like an increasing number of Their outdoor kitchen is fitted with Asked whether the board would Americans, the Fredericks take their a sophisticated Wolf range specifical- wait to appoint a successor until the hobby up another notch. They’ve in- ly outfitted for outdoor use. The setup new governor filled board seats with vested big time in the luxury of a includes a grill, an oven and a side directors of his choosing, Minor said sprawling outdoor kitchen. gas burner. Oh, and a brick pizza that has come up in the succession Just a few steps from their house, oven. conversations the board is having but the North Ridgeville couple has So, seriously, why? he would not be more specific about erected a storm-resistant pavilion “Well, we love to entertain. And to The Fredericks’ outdoor kitchen features a wall of cooking appliances, when he would leave and when the that serves as an open patio fitted SEE KITCHENS, PAGE 33 including a pizza oven, a Wolf oven and main grill, and side gas burner. SEE SURVIVE, PAGE 35 Entire contents © 2018 by Crain Communications Inc. Inside Banks are looking to bolster offerings with help We visit Kent from fintech startups. to chat about Page 11 small-town banking in M&A market forces the modern tweaks in PE dealings. era. Page 15 Page 14 P001_CL_20180820.indd 1 8/17/18 4:09 PM PAGE 2 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS For-sale suites eyed for Union Trust space By STAN BULLARD developer, the late Nathan Zaremba, to lose presales on units as the hous- 41 [email protected] ing market soured in 2008. A welter of Condominium and townhouse units @CrainRltywriter lawsuits resulted that were consoli- that were listed for sale in the 44113 dated into a single case. Zaremba and 44114 zip codes on Realtor.com, In the hunt for uses to occupy the Management Co., a company then as of Thursday, Aug. 16. massive Union Trust office building headed by the late brother, Timothy at 925 Euclid Ave., real estate owner Zaremba, one of Nathan Zaremba’s lenders since the housing market and developer Frank Sinito’s Millen- siblings, led an investor group that started to recover in 2011 have pre- nia Cos. is contemplating a run at the bought the remaining 57 unsold ferred townhouse units which allow missing link in downtown Cleve- units in 2012 to resolve the litigation. buyers to own the ground under- land’s revival: condominiums. They've remained rentals since. neath their units. A proposal to include 60 luxury Another potential hurdle for con- The eR altor.com website shows condominiums is included in an in- dos at 925 Euclid Ave. might be less how little is underway in the condo vestment summary that Millennia daunting than generally thought. category, at least in downtown Cleve- Housing Capital Ltd., Sinito’s fi- Projects such as Union Trust, a land. The market last Thursday, Aug. nance-raising subsidiary, is sharing property better known by its former 16, offered just 41 condominium and with prospective investors for the name as the Huntington Building, townhouse units for sale in the 44113 proposed $350 million project. generally require using state and fed- and 44114 zip codes, but just one The investment outline, which in- eral tax credits, which are not appli- new construction offering, town- cludes potential costs and sources of cable to for-sale projects. They need houses at the low-rise portion of Za- funds for the mammoth project was to be rented for five years under fed- remba’s Avenue District. If down- obtained by Crain’s Cleveland Busi- eral law. town does not offer condominiums, ness from a third party on grounds he However, experts say it might be it risks losing buyers to city neighbor- not to be identified because he is not Cleveland-based Millennia Cos. may put luxury condominiums into the possible to include for-sale units be- hoods that are offering townhouses part of Millennia’s staff or the project former Huntington Building as part of its $350 million plan to resurrect cause they are technically air rights for sale with prices from $260,000 to team. the mostly empty property for contemporary use. (Stan Bullard) within the walls of a structure reno- almost $1 million. Or such well- Co-working space, a trendy open vated with the credits. heeled prospects might buy high- office-sharing plan serving multiple spirit that drove Sinito, in partner- lenders dislike the property type after Clevelanders already have demon- priced suburban townhouses. tenants in one suite, also is a compo- ship with his wife Malisse, to build a suffering huge losses on them na- strated an appetite for condos in a True to form, Sinito’s Millennia nent of the office portion of the plan hospitality company with multiple tionally in the housing bust. They can historic property, however. Public has talent in even the condo arena. if a third-party provider such as We- restaurants, a more than 20,000-suite also provide a source of continued Square also is home to the Park Michael Friedman, for the past Work or Regus will lease space for apartment empire and the 2016 pur- development when real estate devel- Building, a 140 Public Square land- three years president of Millennia such an operation. However, other chase of Key Center and its 57-floor opers overbuild the rental apartment mark that was converted to condo- Housing Capital, sold distressed con- potential uses have been aired pub- Key Tower centerpiece. market, but that’s not yet on the hori- miniums in the housing boom. The dos and townhouses throughout the licly since Millennia bought the Condominiums are often dis- zon. residential conversion met historic nation for lenders and developers in property for $40 million last spring, cussed downtown because they pro- Thel ast major downtown condo guidelines but did not use the credits, the early 2000s. Friedman declined including market and affordable vide a way to introduce home owner- construction project sank during the which allowed the suites to be sold. to comment for this story on the in- apartments, a restaurant and a luxu- ship to the city center where land housing bust as the 10-story Avenue Suites have recently been resold for clusion of condos in the 925 Euclid ry car showroom. costs are high. However, condo proj- Tower, 1211 St. Clair Ave., which had upward of $400,000 according to plan. Taking a run at for-sale condo- ects are only now starting to surface 62 suites, failed. Cuyahoga County land records. For his part, Sinito, via his assis- miniums reflects the entrepreneurial and rise because, developers say, A construction setback caused the Since condos use air rights, local tant, declined comment. “OEC IS INVESTED IN MY TECH CAREER.” Does your company care about your career path? Learn more at OEConnection.com/Christina P002_CL_20180820.indd 2 8/17/18 1:21 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 3 State’s business gateway has roadblocks By JAY MILLER means a delay of a month in getting “Several businesses about not getting their withholding payment.
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