Shakeup at GE Lighting

20160208-NEWS--1-NAT-CCI-CL_-- 2/5/2016 3:45 PM Page 1

VOL. 37, NO. 6 FEBRUARY 8 - 14, 2016

MANUFACTURING: Outlook Business of Life It’s a mixed bag for industry in 2016 P. 6 Ice wine How frozen grapes SPORTS: Arena football become a sweet drink Cleveland is rare AFL success story P. 20-21 P. 8 The List FOCUS: Middle Market CLEVELAND BUSINESS Heinen’s downtown move paying off NEO’s largest software developers P. 15 P. 27 A to Z podcast making a mark

BY KEVIN KLEPS frequent inquiries led to a partnership that really helped the podcast [email protected] take off. @KevinKleps

Zac Jackson casually tells a re- Here to stay porter that he didn’t get an iPhone “I bugged them for a long time,” “until like a year ago.” said Grzegorek, the editor-in-chief of Andre Knott, his best friend and a pair of alternative weeklies, Cleve- podcast partner, immediately land Scene and the Detroit Metro chimes in, “And he still doesn’t know Times. how to use it.” Grzegorek said he would call Jack- The scene was a Panera’s in North son “at least once a month” and ask Olmsted, but it might as well have him if “it was time for us to have a se- been one of the undisclosed loca- rious conversation.” A display of tions (Jackson and Knott prefer to Late last summer, Scene made an LED technology keep their audience wondering) at offer — it would pay Jackson and at GE Lighting’s which the two record their increas- Knott a fee for the podcast, which ingly popular A to Z podcast. would be streamed on the publica- Nela Park They like to say they’re “just two tion’s website (in addition to iTunes campus in 2015 fat kids from Akron,” but that’s more and the hosts’ atozpodcast.com), of a self-deprecating bit than it is an and they would share the revenue REBECCA R. MARKOVITZ accurate description of their appear- from any podcast sponsorships. ance. It’s all part of the fun that is A Jackson and Knott committed to to Z — two 30-somethings with full- producing a couple podcasts per time jobs who decided to turn their week, and Scene’s sales team got to all-the-over-place conversations work on selling the podcast after its into what might be the most popular late-September relaunch. By Janu- Cleveland-centric sports podcast. ary, the podcast’s downloads had Jackson, a writer for Pro Football Shakeup at jumped 50% and three sponsors, in- Talk, and Knott, the Indians on-field cluding a presenting sponsor and a reporter for SportsTime Ohio, be- social media sponsor, had come came friends while working for the aboard. Cleveland Browns for the majority of “In a very short time, it’s turning a the 2000s — Knott as the sideline re- profit,” Grzegorek said. porter for the team’s radio network Jackson said the hosts have rein- and Jackson as a writer for the vested all of the money they’ve made GE Lighting Browns’ website. from the podcast into recording “We’re out boozing one night with equipment, their new website and our friend, just being ourselves,” such expenses as paying a designer Jackson says of a night he estimates (another friend of Jackson’s) to illus- Unit gets new CEO, igniting more sale rumors was in 2005, “and our friend says, trate a logo for the show. ‘When are you guys going to get a “We’re in this for the long haul,” BY CHUCK SODER Boston, and some will continue show?’ He says, ‘We already got the Jackson said. “Some day, this is what working from GE Lighting’s head- name, A to Z.’ ” we’d like to do. In the meantime, we [email protected] quarters in East Cleveland, according In 2014, after a couple of failed tri- are having fun with it.” @ChuckSoder to a statement from the company, al attempts, the A to Z podcast de- The often-hilarious nature of the which wouldn’t say how many people buted at 603brown.com, a website podcast — Knott once played parade GE Lighting is undergoing major work for Current or GE Lighting. run by Mike Burgermeister, a friend music while Jackson went on a rant changes — just like the rest of the The company also wouldn’t com- of Jackson’s. After a year of doing the about Browns fans celebrating little lighting industry. ment on a recent Bloomberg article podcast basically just for fun (there victories such as on-field progress by General Electric cut the business stating that GE is open to the idea of were no sponsors), Jackson, 36, and Johnny Manziel — has contributed into two parts last fall, which sparked selling its retail lighting business. Knott, 37, took a brief break from the to its growing appeal. Another key a shakeup at GE Lighting and reignit- The article cited “a person famil- podcast prior to the 2015 football factor for two guys who still work ed rumors that it might be sold. iar with the company’s thinking.” season. part-time at a pair of Cleveland radio For one, it has a new CEO. But one GE executive — Lacey’s It was then that Vince Grzegorek’s SEE PODCAST, PAGE 23 Bill Lacey, who previously served new boss — did reveal some of her as chief financial officer, has re- thinking in that Bloomberg article. Entire contents © 2016 by Crain Communications Inc. placed Maryrose Sylvester. She re- From Bloomberg: “The lighting cently moved to Boston to lead Cur- industry has become somewhat rent, the new business unit that GE commoditized,” said Beth Com- carved out back in October — a unit stock, vice chair and head of the tasked with commercializing some business innovations unit that in- of GE Lighting’s biggest ideas. cludes lighting. Bill Lacey, CEO, GE Lighting And she’s not the only GE Lighting “We like where we are, but the fo- employee who has joined Current. cus on our future really is on the lighting and the sale of incandescent On LinkedIn, it’s not hard to find smart, connected, commercial space bulbs and other traditional light former GE Lighting employees who for lighting.” sources. now say they work for Current. Some GE Lighting is in charge of the oth- Two of three industry insiders of those employees will move to er part of the business: Consumer SEE GE, PAGE 26 20160208-NEWS--2-NAT-CCI-CL_-- 2/5/2016 8:53 AM Page 1 20160208-NEWS--3-NAT-CCI-CL_-- 2/5/2016 2:18 PM Page 1

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PAGE 4 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS SOLD Employers could foot bill If HB 394 passes, companies’ unemployment taxes would increase 1111 EUCLID AVENUE CLEVELAND, OHIO BY JAY MILLER The key cut would be a reduction in employee base rate, according to a the maximum number of weeks an calculation by Cohen & Co., a Cleve- [email protected] individual can receive unemploy- land accounting firm. @millerjh ment benefits from 26 weeks to a A debt of $775 million to the fed- range of 12 to 20 weeks, depending eral system remains. As long as In an effort to right the finances of on circumstances. some portion of the debt is out- the state unemployment trust fund, Federal and state taxes support the standing, the federal government the Ohio House of Representatives is unemployment insurance system raises the amount employers pay for considering a bill that would reduce with the federal system also acting as the federal share of unemployment benefits to unemployed workers and a financial backstop to the state pro- insurance until the debt, with inter- temporarily raise the unemploy- grams. The federal government also est, is repaid. While the raising of the Newmark Grubb Knight Frank ment insurance tax on employers. can extend benefits nationwide, at a state tax rate to employers would be is pleased to announce the HB 394 is being pushed to solve a cost to the federal government, in temporary, the bill currently being $6,000,000 sale of 1111 Euclid Ave., Visit long-standing problem — the times of high unemployment. discussed in the House Insurance TerryCoyne.com amount employers pay in taxes isn’t State Rep. Barbara Sears, a Re- Committee would permanently cut a 315-space parking garage. Or Call Terry at sufficient to build up a large-enough publican from suburban Toledo, in- into the payouts to unemployed Terry Coyne and Richard Sheehan 216.453.3001 reserve to cover the payout in bene- troduced HB 394 in November. workers. That brought employee ad- fits during a recession, when unem- “We need to have solvency before vocates to the state capitol to argue represented the buyer, ployment rises. we go into another recession” she against the benefit cuts at hearings Hudson Holdings. The bill would boost the amount told Crain’s in a phone interview. in November and January before the employers pay in unemployment The issue became critical when Insurance Committee. 1350 Euclid Ave., Suite 300 taxes by requiring employers to pay Cleveland, Ohio 44115 the Great Recession hit and unem- Zach Schiller, research director of state unemployment taxes on the ployment — and unemployment Policy Matters Ohio, a nonprofit eco- first $11,000 of each employee’s compensation payments to unem- nomic policy think tank, told the salary, up from $9,000 at present. ployed workers — soared. The state committee that by reducing benefits, That increase would last only until had to borrow from the federal gov- the bill misdiagnoses the problem, the state unemployment fund reach- ernment to keep the unemployment arguing that reducing benefits to a es a minimum safe level — probably trust fund afloat. Without advances maximum of 12 weeks would put two to three years — and the state from the federal unemployment sys- Ohio at the bottom of state programs. pays off a $775 million debt to the tem that the Ohio Department of Job In a December survey, the Wash- federal government. After that, the and Family Service reports totaled ington, D.C.-based Center on Bud- cost to employers would fall back to $2.6 billion, the Ohio Unemploy- get and Policy Priorities found only the $9,000 threshold, though the cost ment Compensation Fund would eight states that offer fewer than 26 to employers could fall further if the not have been able to pay monthly weeks of regular unemployment. PREMIER SERVICES fund remains financially strong. benefits to out-of-work Ohioans. Rep. Sears said she hopes the bill According to an analysis by the Since that time, employers have moves out of committee and is Commercial Real Estate Financing Construction Loans Ohio Legislative Service Commis- paid more than $960 million in in- passed by the House so the Senate sion (LSC), the nonpartisan adviser creased federal unemployment tax- can consider it after the March 15 SBA Loans - 7(a), 504, 7(a) Express Business Lines of Credit to the Ohio General Assembly, the es, and the state unemployment sys- Ohio primary. She acknowledged bill would reduce employer contri- tems has paid back the federal that the Senate and Gov. John Ka- Machinery & Equipment Loans 5ȞQDQFLQJ2SWLRQV butions by $313 million annually be- system $1.55 billion, including inter- sich may have their own ideas, tween 2018 and 2025. est. That has meant that, in 2014 for though she said members of the At the same time, it would cut example, Ohio employers paid fed- governor’s policy staff told her they benefits by about $475 million a eral unemployment taxes of $126 agreed with the need to bolster the Contact Jonathan Mokri today to discuss what our Credit year, according to the LSC analysis. per employee, $84 above the $42 per system’s finances. 8QLRQVFDQGRIRU\RX$VNXVDERXWRXǓ[HGUDWHSURJUDP

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PAGE 6 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS

For Sale - 22,748 SF Industrial Bldg. Investor / User Opportunity Outlook for manufacturing PRICE REDUCED headed in multiple directions

BY RACHEL ABBEY MCCAFFERTY sales, about 7% lower than 2014, or vides services like consulting, engi- about 2% lower if currency factors neering and prototyping through its [email protected] are discounted. And executive vice family of companies. It looks to be @ramccafferty president and CFO Philip Fracassa an expert in different areas, like 3-D said he is expecting 2016 to be “chal- printing through rp+m and medical Manufacturing is a bit of a mixed lenging,” as well. The company is ex- regulatory systems through Jalex bag right now. pecting revenue to be down 4% to Medical. Last year, Hlavin said the On one hand, there’s the booming 5% in 2016 due to currency factors company did some reorganizing af- automotive business, where con- and decreased sales in both its mo- ter significant sales growth from sumers are continuing to buy new bile industries and process indus- 2010 to 2014, and he’s expecting to 10700 Broadway Avenue, Garfi eld Hts., OH cars at record levels. On the other, tries segments. Timken serves a di- see growth in 2016. The company’s there’s the struggling steel industry, verse set of industrial markets but pipeline is promising, he said, and • 22,748 SF on 2.847 Acres • Buss Ducts which has taken a hit from a strong many, aside from automotive and Thogus may even have to expand or • Built in 1941/Addition 2000 • (2) 5 Ton Cranes dollar and an influx of imports. wind energy, are flat or struggling, invest in new equipment and tech- • (2) 12’ x 14’ Drive-In Doors • Fenced-in Property “2016 is going to be really two Fracassa said. nology if some of those opportuni- • (1) 10’ x 10’ Drive-In Door • Clean Phase II Environmental tracks for manufacturing,” said Teshome said diverse companies ties in the pipeline come to fruition. • 14’ - 16’ Ceiling Height Report June 2014 Mekael Teshome, an economist will be able to best weather this soft And Thogus isn’t the only compa- • 200AMP/240V/3-Phase Electric • Off ered for Sale at: $525,000 with Pittsburgh-based PNC Finan- patch, a point Wimmer also made. It ny taking that approach. cial Services Group. will still show in their results, Wim- A. Schulman continues to invest Joseph J. Martanovic There will be strong segments, mer said, but the smaller, more-fo- in research and development and in 216.861.5434 like automotive and housing, as well cused companies will suffer more. new products and new plants, Rzep- ka said. At Timken, the company is [email protected] HannaCRE.com as weak ones tied to the energy industry. Markets with global expo- Trying something different focused on “operational excellence,” sure, like steel, are struggling be- That need for diversification is which in this business climate tends cause of currency issues and cheap something with which Fairlawn- to mean cost reductions, Fracassa Upcoming Editorial Feature imports. Teshome expects auto sales based plastic compound and resin said. And it’s trying to outgrow its to be even better in 2016 than in the supplier A. Schulman Inc. is familiar. current markets and expand market already strong 2015, and for housing The company embarked on an M&A share. He said the company thinks it to see slow growth. Overall, he’s ex- strategy to add more specialty busi- is well positioned for when markets MEETING pecting 2016 to look a lot like 2015 nesses in 2010, said CEO and presi- do turn around. for manufacturing, and he’s not an- dent Bernard Rzepka. Before that, it Nothing wrong with flat AND ticipating a turnaround until 2017. was a more commodities-based Chris Wimmer, vice president and company. T.J. Monico, director of KeyBanc senior credit officer for New York And the oil and gas and com- Capital Markets in Cleveland, said EVENT PLANNER City-based Moody’s Investors Ser- modities markets are struggling, there’s uncertainty in the industry, vice, has a slightly gloomier outlook Rzepka said, and the whole market but the firm’s clients are “oppor- on the sector. is “diverse and challenging.” But de- tunistic.” It gives them a chance to Issue date: March 21 • Ad close: March 10 Moody’s took its rating outlook mand is strong in the automotive, “play offense,” he said — launching for industrial manufacturing, which household and electronics markets, new products and investing in re- excludes consumer products, from which A. Shulman supplies. Net search and development. Compa- stable to negative in October. The sales for the first quarter of 2016 nies also are looking to supplement slowdown in the energy sector, were up about 5.6% to $649.2 mil- their organic growth, which may be along with the strong dollar and lion (though the company noted lagging, with mergers and acquisi- pain in the agriculture and mining that discounting negative currency tions, he said. sectors, pointed to something nega- impacts and revenue from its Overall, Monico said he is expect- tive and meaningful, Wimmer said. Citadel acquisition, net sales would ing the broader industrial base to be Additionally, the slowing economy have declined about 2.4%.) flat this year, because some markets in China has a strong secondary ef- Injection molder Thogus in Avon are up while others are down. He’s fect, as it means the country then in- Lake also works with customers in a looking for companies to invest in vests less in oil and gas and com- wide variety of markets — from their business and their people. modities. healthcare and hunting supplies to Matthew Nipper, KeyBank’s com- The low commodity prices, strong automotive and small appliances. mercial team lead for Northeast U.S. dollar and weakness in emerg- “When you’re tied to one market, Ohio, said companies have the Advertising information: ing markets made for a tough 2015 you’re subject to the ebb and flow of chance to broaden and diversify Nicole Mastrangelo • 216.771.5158 • [email protected] for North Canton-based Timken Co. that. But we’re diversified,” said their manufacturing base when con- The full-year results for the maker CEO Matt Hlavin. ditions slow down a little. of bearing, transmissions and other Instead of just operating as a con- “Flat isn’t necessarily a bad products included $2.9 billion in tract manufacturer, Thogus pro- thing,” Nipper said.

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 7 THE DISH Something special is brewing in city’s coffee scene Brendan Walton first discovered the idea, and they worked out a deal other local food businesses, plus a coffee in the late 1980s when he was to donate 10% of the proceeds to All new streetscape in the works, Wal- booking and managing The Janglers, Faiths Pantry. ton decided to go for it. a popular Cleveland rock band. Walton is also gearing up to give Getting to this point wasn’t easy. “I remember talking to my buddy Cleveland Coffee Co. a storefront The building had sat empty for at and I said, ‘This morning stuff, bro, presence in a building he owns at least a decade when Walton agreed it’s rough,’ ” Walton recalled. “He West 58th and Lorain Avenue in to buy it from the previous owner. said, ‘You ever tried coffee?’ The rest Cleveland’s Detroit-Shoreway neigh- When the two buildings on either is history.” borhood. side of it deteriorated, the city tore He explains the appeal of his cof- them down, leaving behind grassy fee, which is made from high-grown vacant lots. Lee Chilcote Arabica beans he roasts himself, this “It’s like the little urban house on way: “It’s fresh. When we start the prairie,” Walton joked. Chilcote is a rolling, it could be on a shelf within In the past few years, some neigh- freelance writer 24 hours.” borhood leaders wanted to tear it and editor who Cleveland Coffee is one of a grow- down, but he insisted that the prop- has written for ing number of artisan roasters in erty was worth renovating. Vanity Fair, Next Cleveland. While purveyors like The slender storefront may be the City, Belt and Phoenix Coffee Co., Caruso’s Coffee last standing wooden A-frame build- other publications. He is the founder of and Red Cedar Coffee Co. have been ing in the Lorain Avenue Historic Lit Cleveland. around for some time, newer small District, he noted. batch roasters like Rising Star, Six Recently, Walton installed all new Soon he began working as a Shooter and Duck-Rabbit are grow- wooden lap siding on the exterior. barista and roasting his own coffee ing rapidly and opening new store- He has a mechanical permit and on the side. fronts. aims to start renovating the interior Years later, he set his sights on “It’s a really exciting time, actual- soon, with the goal of opening be- opening his own coffee shop and ly,” said Peter Brown, founder of Six fore the Republican National Con- launched A.J. Rocco’s in the Gate- Shooter Coffee, which is opening a vention in July. way District in September 2001. 900-square-foot café in the Waterloo The 850-square-foot storefront Brendan Walton’s Cleveland Coffee Company is one of a growing Around the same time, he also Arts District later this month. will include a small counter area, in- started Cleveland Coffee Company, “I think our culinary scene has number of artisan roasters in the city. (Lee Chilcote) door seating and possibly open air a small batch roaster whose coffee is been on point for a while, and our windows. Walton would also like to now available at more than 40 retail- brewing scene is great, but the miss- while managing A.J. Rocco’s. He also Walton, who has made several ap- build a back patio. He plans to finish ers and restaurants across Northeast ing ingredient has been coffee. does ground fractional packaging pearances on local television and ra- the interior with reclaimed wood Ohio. There’s going to be an explosion in for restaurants. dio stations. “It’s a darker roast, finishes, and to offer baked goods Recently, Walton inked a deal the next couple of years.” So far, he has received a very pos- which he enjoys, and he liked the for sale. with Cleveland Cavaliers star “There’s room for everyone,” he itive response to the G’Day Mate fact that there was a charitable com- “I really feel like it’s going to be a Matthew “Delly” Dellavedova to in- added. “I think that more customers blend, which was released on Jan. ponent.” good cornerstone on Lorain,” he troduce G’Day Mate, a custom will appreciate the product once 25, which also happens to be Aus- Walton has been fixing up the said. blend of specialty-grade Peruvian they’ve been educated about it.” tralia Day. Sales have been strong building where he plans to put his “Between 50th and 58th, there’s and Sumatra coffees. Cleveland Coffee currently has ever since Dellavedova posted about new café for years. In that time, he’s nothing. I want to kick-start Lorain.” Walton approached Dellavedova four employees. the product on social media to his been waiting for the right moment after learning that he drinks coffee Walton has deliberately kept 200,000-plus Facebook followers. to launch his new venture. With Lo- To contact Chilcote, send an email to during Cavs games. The Australian- things small because he wanted to “(Dellavedova) enjoyed the idea rain Avenue on the rise thanks to [email protected]. You also can born basketball player was keen on focus on whole bean packaging and got a chuckle out of it,” said Platform Beer Co., Jack Flaps and follow him on Twitter @leechilcote.

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PAGE 8 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS ‘Biting the bullet,’ AFL downsizes

BY KEVIN KLEPS cus on the numbers.” withal.” Financial problems aren’t new to Ostrowski, Cavs CEO Len Ko- [email protected] the league, which is entering its 29th moroski and president of business @KevinKleps season. operations Kerry Bubolz serve on The AFL, which reportedly owed the AFL board of directors. Ko- When the Arena Football League $14 million to its creditors at the moroski and Bubolz are also on the season kicks off in April, there will be time, suspended operations in 2009 AFL strategic planning committee, no defending champion, since the and adopted a single-entity model and Ostrowski is a member of the San Jose SaberCats’ owners decided when it returned in 2010. All players competition committee. last fall that they would “no longer and coaches are league employees, Ostrowski said owners with “mul- continue as members” of what is with investors then purchasing tiple properties” — ones with an now an eight-team league. shares in the league. NBA or NHL team, plus a minor- In 2008, the Gladiators’ first sea- “When the owners can’t pay their league club that shares an arena — son at Quicken Loans Arena after bills, in the single-entity model that are ideal. then-owner Jim Ferraro moved the the AFL is, it puts a strain on the oth- “Those are the types of owners we franchise from Las Vegas to Cleve- er owners,” said Mike Ostrowski, a need in this league,” he said. “We land, the AFL had 17 teams. As re- Cavaliers vice president who serves can still have other types of owners, cently as 2014, there were 14 clubs. as the chief operating officer of the but that’s who we’re trying to attract The league’s current total, with all Gladiators and Lake Erie Monsters. to this league. When the league was eight teams guaranteed to make the The Gladiators, who joined Dan at its peak, those are the types of postseason in 2016, is its lowest Gilbert’s family of companies when owners we had.” franchise count since 1991. the billionaire purchased the team The AFL has certainly had its “We probably don’t want to be in 2012, have been one of the AFL’s share of valleys, but Butera, who less than that,” said Scott Butera, a few business standouts. added to his reputation as a casino gaming industry veteran who was Cleveland drew more than 10,000 turnaround specialist after helping named AFL commissioner following fans for eight of its nine home games The Gladiators averaged 11,558 fans per game in 2015. (John Saraya) Foxwoods trim its debt from $2.3 the 2014 season. in 2015, tying Orlando for the league billion to $1.7 billion in his four-year “We’ll probably add two to six lead. The Gladiators’ average atten- tenure, believes brighter days are (teams) in the following year.” dance of 11,558 was second in the ahead. During Butera’s debut season, the AFL and was a 9% jump from a Roll up your sleeves year,” Ostrowski said. “When you see a team go away, I “On the business side, we’re do- AFL had to take control of two strug- 10,609 norm that ranked third in The Glads, however, have what think people don’t quite know how ing well. We expect to continue to gling franchises, the Las Vegas Out- 2014. The Gladiators tripled their many former AFL franchises do not to interpret the news. ‘What’s that grow it.” laws and New Orleans VooDoo, that season-ticket base in 2015, and — Gilbert’s strong financial backing, about? What is going on?’ ” he said. later folded. group sales doubled year-over-year. combined with the powerful mar- Butera believes the league even- “But everything we’re doing is going The Spokane Shock, as the Iowa The numbers are on pace to in- keting and cross-promotional arms tually will grow, too. But the AFL according to plan. It always takes Barnstormers did the year before, crease again this year, Ostrowski of The Q’s other two inhabitants, the won’t add teams as indiscriminate- more time than everybody hopes. left for the 8-year-old Indoor Foot- said. star-studded Cavs and the American ly as it might have in the past. We spent a good, solid year biting ball League. “The Gladiators really are the Hockey League’s Lake Erie Mon- “There’s a lot more to running a the bullet and getting the platform “The first step was to get the plat- standard for what we want to be — sters. football team than hosting some correct.” form straightened out, get the fi- great owner, good personnel, good Cleveland’s AFL franchise has people and having a couple drinks And in true creative marketing nances secure and get a good core people,” Butera said. what Ostrowski calls a “dedicated” in a luxury box,” Butera said. fashion, the AFL commissioner said group of owners,” said Butera, a for- “They put on a good show, and team that focuses its year-round “It’s hard, roll-up-the-sleeves type the scaled-down league should pro- mer CEO of Foxwoods Resort Casi- what they’ve done with the arena, sales, marketing and promotional work. It’s marketing, promotions, duce better games. no in Connecticut. “I think some the scoreboard and the whole expe- efforts on the Gladiators. and investing in your teams and “I think what we’ll find,” Butera people in the past came in focused rience is the standard. When we talk “During the 2015 season, in June, players. It’s got to be somebody that said, “the one hidden gem in all this, on growth, but it’s more important to new teams, we have them talk to July and August, we had already really understands that. That’s as is with eight teams the quality (of to have the right group and not fo- the Gladiators quite a bit.” moved the (sales) calendar to next important as their financial where- play) is going to be terrific.”

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 9

CLEVELAND BUSINESS

The Week 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-11230; Phone: (216) 522-11383; www.crainscleveland.com Acting publisher/editor Elizabeth McIntyre Events manager Jessica Rasmussen CRAIN COMMUNICATIONS INC. Managing editor Events coordinator Scott Suttell Kim Hill Chairman Keith E. Crain Sections editor Integrated THE BIG STORY FOLLOW THE MONEY Tim Magaw President Rance Crain Associate editor/Akron marketing manager Michelle Sustar Sue Walton Treasurer Mary Kay Crain Cleveland Mayor Frank Jackson The Greater Cleveland Partnership Managing editor, custom Assistant editor Kevin Kleps CIO Anthony DiPonio and special projects Amy Ann Stoessel proposed a raise in the city’s income says its top priority in the upcoming Senior reporter Stan Bullard CFO Thomas Stevens Advertising director tax from 2% to as much as 2.5%. He state capital budget is securing $8.5 Real estate/construction Nicole Mastrangelo Group publisher Mary Kramer Senior account exec. said an increase to 2.5% would raise million in funding for the pedestrian Reporters Jay Miller, Government Dawn Donegan Exec. VP/operations William A. Morrow Account executives Chuck Soder Lindsie Bowman Exec. VP/director of an additional $83 million annually. bridge that will connect downtown John Banks Technology strategic operations Chris Crain The mayor said any increase would Cleveland to the lakefront. GCP de- Laura Kulber Mintz Dan Shingler Exec. VP/director Office coordinator Denise Donaldson be put to the voters either in scribed 10 other projects, with price Energy/steel/auto of corporate November or in a special election in tags totally $39.6 million, that it will * * * operations KC Crain Rachel McCafferty Web editor Damon Sims VP of production early 2017. See editorial, Page 10. push the Kasich administration and Manufacturing/energy Digital and manufacturing Dave Kamis the state Legislature to include in Jeremy Nobile, Finance strategy/audience development director Nancy Hanus G.D. Crain Jr., Founder (1885-1973) GOING SOUTH? their 2016-2017 capital plan. Among Lydia Coutré, Mrs. G.D. Crain Jr., Chairman (1911-1996) Production director Craig L. Mackey the other projects were seven GCP Health care Columbus officials asked the state Production assistant/ * * * Reprints: 212-210-0750 categorized as “Tier 1,” or higher pri- Research editor Deborah W. Hillyer video editor Steven Bennett to kick in $5 million to help the Krista Bora [email protected], ority projects. They include $1 million Art director Rebecca R. Markovitz Cleveland Browns move their Billing Lana Semaan Customer service and subscriptions Cartoonist Rich Williams training camp to Columbus. The for a bridge that would improve ac- Credit Todd Masura 877-824-9373 documents submitted to the state cess to Wendy Park on the lakefront. request $5 million in funding from the biennial capital improvement bill for what it calls an “athletic practice and training facility.” The request has angered some — most notably State Rep. Mike Dovilla, R-Berea, who said that moving the team’s training camp from Berea to Columbus is an “absurd idea.” The team, though, has entertained the idea of a training camp move for several years.

THE WAIT IS OVER A long-awaited downtown Cleveland hotel project is about to make its debut. Kimpton Hotels & Restau- rants of San Francisco announced Feb. 3 that it will open The Schofield Hotel in March. In the works since 2009, when it was proposed in the We’re up to speed, depths of the real estate credit crunch and Great Recession, the $50 million renovation of the former so you can go office building at 2000 E. Ninth St. will be Ohio’s first Kimpton. Kimpton is part of Cleveland-based developer full speed. CRM Cos.’ renovation of the 1902- vintage building as an apartment and hotel. The Kimpton part of the 14- story structure includes a 122-room hotel with six suites, 3,800 square SEE CHALLENGES BEFORE THEY’RE CHALLENGING. feet of banquet space, and Parker’s Downtown, a restaurant and bar. To make conﬁdent decisions about the future, middle market leaders need a diﬀerent kind of advisor. One who starts by CRAFTY MOVE understanding where you want to go and then brings the Craft retailer The Michaels Cos. said ideas and insights of an experienced global team to help it’s buying Strongsville-based get you there. Lamrite West Inc. — the company that runs Pat Catan’s arts and crafts Experience the power of being understood. stores — for $150 million. Irving, Experience RSM. Texas-based Michaels said Lamrite West “will maintain its team and rsm us.com facilities” in Strongsville and will “continue to operate as a distinct business within Michaels.” Michael Catanzarite, whose father founded the company in 1954, will continue to lead the team as CEO of Lamrite West and will serve on Michaels’ executive committee. Lamrite West operates 34 Pat Catan’s stores in Ohio, Pennsylvania, Michigan and West Virginia. Michaels said no stores will close and there will be no layoffs due to the ownership change.

THOUGHTFUL GIFT University of Akron alumni Dr. Gary B. and Pamela S. Williams pledged more than $10 million to the school. Univer- sity president Scott L. Scarborough this week will recommend to the board of directors the renaming of the school’s honors college as the Dr. Gary B. and Pamela S. Williams Honors College. The couple fund an endowed lecture series in biology and a scholar- ship for gifted students, and the additional gift will allow the university to establish the Dr. Gary B. and Pamela S. Williams Honors College RSM US LLP is the U.S. member ﬁrm of RSM International, a global network of independent audit, tax and consulting ﬁrms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. Endowment Fund, which will support a variety of academic programming. 20160208-NEWS--10-NAT-CCI-CL_-- 2/4/2016 4:33 PM Page 1

PAGE 10 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS Opinion

From the Editor How far have we really come?

The past few weeks have felt like a time warp for women in the workplace. z “She couldn’t possibly be qualified to the same level that a man could be qualified.” z “The gal that’s running against me is a 30-year-old, you know, mom, mother of two infants. … And I don’t know if anybody explained to her we’ve got to spend three nights a week in Columbus.” z “And this is the bimbo that’s asking presidential questions?” These are just three examples of public statements made about women in positions of power since mid-January. Trust me. There are more. Makes you wonder whether working women have made many strides these past few decades. A sobering thought, isn’t it, especially when you realize how casually these statements were made. You can thank Cleveland sports talk radio host Kevin Kiley for the first comment. Kiley took to the airwaves two weeks ago to denounce the Buf- falo Bills for making NFL history by naming Kathryn Smith as special teams quality control Elizabeth coach, the first woman appointed as a full-time McIntyre member of an NFL coaching staff. Editorial “There’s no place for a woman in professional sports, in football, coaching men,” Kiley said. “Men will not take to it.” Kiley ignores the fact that Smith has been part of the Nation- al Football League since 2003 and that many Bills players tweeted their support for her. Does Kiley believe “men will not take to” a woman in leadership at any level? What about one who runs a radio station? Shortly after Kiley’s nonsense, state Sen. Tom Patton of Make the case Strongsville, who is running for a House seat, questioned whether The city of Cleveland has been, on balance, a good stew- Jackson intends to present the tax increase to city council his opponent in the March primary could handle being away from ard of the money it collects from taxpayers. Unlike Detroit, in a few months, following completion of a study on the city’s home if she was elected to serve in the state legislature. Speaking on the Jan. 18 America’s Work Force radio show, Patton also referred to with its wrenching bankruptcy, and Chicago, with its crush- financial needs. It’s critical that the study be absolutely clear Jennifer Herold patronizingly as “sweetie” and “young gal.” He later about how additional money would be spent, and how that ing debts and pension mess, Cleveland has enjoyed relative apologized, saying his words “appear to have been misunderstood.” fiscal stability despite dealing with the same problems — a money would bolster city services significantly. That then brings us to Republican presidential candidate Donald shrinking industrial base, a still-sluggish economy and a stag- An increase of half the size proposed, to 2.25%, would raise Trump, who recently retweeted one of his supporters who called nant-to-declining population — that strain the budgets of enough to cover the projected deficit. That should be an op- Fox News anchor Megyn Kelly a “bimbo.” That really isn’t much of many older, Midwestern cities. tion if the administration cannot articulate a viable plan for a shock coming from a notorious sexist like Trump. What I found alarming was the misogynist vitriol that was hurtled at Kelly on Twit- Given that record of accomplishment, we’re inclined to of- spending additional funds — and explain how those funds would improve the quality of life for city residents and make ter after Trump announced he was backing out of the debate be- fer early support — with some conditions — for Mayor Frank cause Kelly was moderating it. A Vocactiv analysis looked at 80,000 it a better place in which to locate a business. Jackson’s proposal to raise Cleveland’s income tax to 2.5% tweets referencing Kelly’s Twitter account in the 24-hour period af- The normally reticent Jackson should be prepared to talk from the current 2% to help cover a budget deficit that’s pro- ter Trump announced he was skipping the debate. Among the on- frequently and forcefully about why a tax hike is needed to jected to top $42 million in 2017. slaught of insults aimed at Kelly, the word “bimbo” was used 404 keep Cleveland on solid financial ground. Beyond that, if a Jackson, who seeks to put the issue on the ballot either in times; “bitch” 423; and “whore” 88 times. tax hike is to have any chance of passing, Jackson will need I’m deeply saddened that we are still having this conversation in November or in early 2017, says that bumping the tax rate to to make the case that improvements in services like snow 2016, that women still face such hostility. And these are just the 2.5% would generate an additional $83.5 million a year for clearing and police response are every bit as important to the high-profile cases that get media coverage. What does it tell us about the city. Those funds would both cover the expected deficit city’s future as some of the investments in glittery downtown the sexism, both overt and hidden, that women still face in the and enable the city to spend more to improve existing ser- everyday workplace, where they make up 47% of the workforce? attractions. So, here’s my challenge to men, many of whom are champions of vices. He’s right to point out that policy changes at the state lev- Even though the city’s income tax hasn’t been raised since equality in the workplace and many who still need to evolve: Con- el — most notably cuts to the Local Government Fund that sider whether anything you do, in your thoughts or in your words, 1981, a 25% hike is a big ask. Cleveland gets a lot of attention Gov. John Kasich used to help balance Ohio’s budget — have denigrates women in any position in your workplace. for the comeback of its downtown, but citywide, it still strug- hit urban centers hard. Four years ago, Cleveland was receiv- If you find the answer is yes, change. Have you recently referred gles to attract companies and jobs, and an ill-conceived tax ing $52 million a year from the Local Government Fund. to your administrative assistant as your “girl?” Stop it. Have you hike could make that task even harder. Cleveland now receives about $25 million annually, a signif- evaluated your pay scale accordingly for experience and gender? If there’s an imbalance, fix it. Have you challenged misogyny and sex- There’s an inherent skepticism of the tax, too, since the city icant cut for a city with a budget of about $566 million. ism when it rears its head in the boardroom or the locker room? Si- estimates about 87% of its total income tax collections come There’s a price to the state’s budgetary shell game, and it’s lence is akin to encouragement. Have you considered the wealth from suburban residents who work in Cleveland. Those sub- now coming due for Cleveland. and workplace happiness that will surely come when you create an urbanites won’t have a vote on the matter, but many of them We’re open to the tax hike, but Jackson needs to step up in environment that truly values not only the work of women, but the do represent business interests that will need to be won over the coming months and offer a vision of a city that operates value of women? Maybe it’s time. to provide support that would lead to passage of a tax hike. more efficiently, for all its residents, than it does today. Because words matter. Actions matter. And equality matters.

ACTING PUBLISHER AND EDITOR: WRITE US: Crain’s welcomes responses from readers. Letters should be as brief SOUND OFF: Send a Person- Elizabeth McIntyre ([email protected]) as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 al View for the opinion page to West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing [email protected]. Please MANAGING EDITOR: [email protected]. Please include your complete name and city from which include a telephone number CLEVELAND BUSINESS Scott Suttell ([email protected]) you are writing, and a telephone number for fact-checking purposes. for verification purposes. 20160208-NEWS--11-NAT-CCI-CL_-- 2/4/2016 10:58 AM Page 1

CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 11

You worked hard.

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You planned for retirement. Web Talk Re: Browns paying those see that after 10 years, there are MANY political hurdles to former coaches deconstruction and reuse is overcome, not the least is the getting legs. Hopefully, it will be medical establishment isn’t at all BAD INVESTMENT ADVICE? The stupidity of guaranteed the standard soon. — Paula Wise aligned with the best way to contracts can only happen in the proceed. I’m not about to suggest • Lose more than $50,000? world of professional sports. A Re: Cleveland’s role that big pharmas have an agenda normal business could not survive • Bad Investment Advice from your Financial Advisor? in cancer moonshot to NOT cure cancer, but they it. If you want to guarantee some- certainly have a lot of vested inter- • Call Our Experienced Team of Securities Attorneys. thing, have it be performance and Well of COURSE landing on the est in maintaining the status quo as something far less for moon was easier (than curing to how we currently treat it. Trying non-performance (i.e., getting fired). cancer) — that was simply a to overcome that is beyond the TIME TO FILE IS LIMITED — Douglas Bosnik matter of technology, and most of power of a President, or even that technology was built on tried Congress. It’s a noble goal and, 1.800.ELK.OHIO I agree, but golden parachutes for and true principles we knew for just like the moon program, any CEOs are nothing different. centuries beforehand. But more efforts along these lines are likely elkandelk.com/FINRA — Stephen Jerome importantly, there was a political to pay dividends in ways we can’t will to do it. The problem with “cur- envision. But no one should hold Re: NASA Glenn’s work ing” cancer (or even just making out hope that we will come up with on a hybrid plane better inroads) is that we still don’t an all-inclusive solution in even our know 0.1% about the mechanisms children’s children’s lifetime. I don’t consider NASA exactly on of the biology involved. Worse, — Kelleytoons the forefront of airplane technology. Point A. It is a large, poorly and inefficiently run bureaucracy paid for, as usual, by us taxpayers. Leave it to the private, innovative firms like Boeing, Airbus or Lockheed to develop this technology on their own dime. This is just another excuse to keep public egghead workers employed. TAKING THE BUSINESS OUT — killdeer5 What happens if one jet engine fails OF BUSINESS BANKING and has to be shut down? Can it fly on thrust from the other engine and the electric power generated by its single generator? — Jim Wilday

Re: GE dumps CFL bulb Haha. I never bought one of those ugly, too-bright, unflattering-to-all- human-skin curly bulbs. Now I won’t Point B. have to! Of course, I still have a Get there your way. hoard of incandescent NORMAL lightbulbs. Reliable, safe, Classic Jet Charter. ARGUS Gold rated. — 207868 440-942-7092. ClassicJetCharter.com. Willoughby, OH. With our Business Mobile App, you can: AIRCRAFT MANAGEMENT | SALES AND ACQUISITIONS | CLEVELAND BASED Re: The greenest • Manage accounts and transfer funds building is the one already standing • Deposit checks by taking a picture of each check After reading Valerie Molinski’s Feb. • Review and approve ACH, Wire, and Positive Pay transactions 1 guest blog, I suggest there are several other very important com- (Treasury Management Customers only) ponents to be measured whether new or rehab. Going for LEED certification only solves a part of the problem. I would like to see The Talmer Bank Business Mobile App lets you securely building owners and others also focus on getting to carbon neutral access your business banking accounts from a mobile device. (not zero) over the next decade, which deals as much with operations Get back to where you want to be! Download the app as the building itself. (As those of us involved with Cleveland 2030 today and sign in with your Business Online Banking District are doing.) The other factor user ID. For more information, or to set up business is to move away from fossil fuel online banking, visit talmerbank.com/businessapp or consumption toward renewable en- call 855-336-9460. ergy, which is harder since the big utilities, especially here in Northeast Ohio, will do very little to help make that happen. I want to see more people get frustrated like me so we can work harder to make it happen. — Neil Dick

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PAGE 12 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS

SALT • SALT • SALT TAX LIENS The Internal Revenue Service filed tax Type: Unemployment, employer’s HAHN & POLLOCK LLC • Water Softener • Industrial • Food liens against the following businesses annual federal tax return 820 W Superior Ave., in the Cuyahoga County Recorder’s Amount: $212,363 Suite 510, Cleveland • Ice Melt • Sea Salt Office. The IRS files a tax lien to Date filed: Dec. 11, 2015 protect the interests of the federal PMI PRODUCTS LLC Type: Employer’s withholding, government. The lien is a public notice 21693 Drake Road, Strongsville unemployment Call For Pricing!! to creditors that the government has a Date filed: Dec. 11, 2015 Amount: $62,200 Minimum Delivery: 1Pallet claim against a company’s property. Type: Employer’s withholding Liens reported here are $5,000 and Amount: $111,927 WILL REPAIR INC. higher. Dates listed are the dates the 2901 E. 65 St., Cleveland documents were filed in the PRECIOUS MEDICAL Date filed: Dec. 11, 2015 Recorder’s Office. HEALTH SERVICES LLC Type: Employer’s withholding, 25000 Euclid Ave., Suite 200, Euclid unemployment Date filed: Dec. 11, 2015 Amount: $19,519 Type: Employer’s withholding LIENS FILED Amount: $87,951 JWT & A L L C, AN LLC 3615 Superior Ave., Suite 1J, Cleveland 20021 US ROUTE 19 LLC GOLDEN HARVEST MARKET LLC Date filed: Dec. 11, 2015 161 Crocker Park Blvd., Westlake 3038 Payne Ave., Cleveland Type: Employer’s withholding Date filed: Dec. 11, 2015 Date filed: Dec. 11, 2015 Amount: $19,013 Type: Partnership withholding tax Type: Employer’s withholding, Amount: $344,707 unemployment 6405 PEARL ROAD LLC Amount: $66,762 6405 Pearl Road, Parma Heights 7910 US ROUTE 30 EAST LLC Date filed: Dec. 11, 2015 161 Crocker Park Blvd., Westlake APPLAUSE INTERNATIONAL Type: Employer’s withholding Date filed: Dec. 11, 2015 MODEL AND TALENT Amount: $18,665 Type: Partnership withholding tax DEVELOPMENT INC. Amount: $307,133 30701 Lorain Road, ABLE COUNSELING & Suite B, North Olmsted ASSOCIATES INC. AMARA HOME CARE INC. Date filed: Dec. 11, 2015 14100 Cedar Road, Suite 300, 5285 Northfield Road, Bedford Type: Employer’s withholding, Cleveland Heights unemployment, failure to file Date filed: Dec. 1, 2015 Date filed: Dec. 11, 2016 complete return Type: Employer’s withholding Type: Employer’s withholding, Amount: $64,334 Amount: $15,506 unemployment Amount: $266,613 PAUL F SMITH JR. DDS INC. LITTLE MIRACLES CHILD CARE 20119 Farnsleigh Road, Shaker AND LEARNING CENTER INC. 1-800-547-1538 V-88 SHOP INC. Heights 22683 Euclid Ave., Euclid 560 Golden Oak Pkwy., Date filed: Dec. 11, 2015 Date filed: Dec, 11, 2015 Salt Distributors Since 1966 Oakwood Village Type: Employer’s withholding Type: Employer’s withholding Date filed: Dec. 11, 2015 Amount: $62,303 Amount: $13,925

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 13

FOILTEK INC. FRC PROJECT LLC 1700 London Road, Cleveland 1902 Old Detroit Road, Rocky River LIENS RELEASED Date filed: Dec, 11, 2015 Date filed: Dec. 11, 2015 1701 E. 12 LLC Type: Employer’s withholding, Type: Employer’s withholding, 1701 E. 12 St., unemployment unemployment Cleveland Amount: $13,752 Amount: $10,276 Date filed: Jan. 8, 2010 Date released: Dec. 11, 2015 PIDALA ORNAMENTAL JOE & SON II INC. GAS & GO Type: Employer’s withholding IRON INC. 4322 Clark Ave., Cleveland Amount: $10,846 7600 Pleasant Hill Drive, Parma Date filed: Dec. 11, 2015 Date filed: Type: Dec. 11, 2015 Employer’s withholding, ACADEMY MUSIC CO. Type: Unemployment, failure to unemployment 1443 Warrensville Center Road, Amount: file complete return, $9,823 Cleveland Heights corporate income Date filed: April 14, 2008 Amount: $12,126 ABLE GRINDING CO. INC. Date released: Dec. 11, 2015 10015 Walford Ave., Cleveland Type: Employer’s withholding MENDREA CONSTRUCTION LLC Date filed: Dec. 11, 2015 Amount: $5,713 10225 Berea Road, Suite B., Type: Employer’s withholding Cleveland Amount: $9,800 AMERICAN LITHUANIAN Date filed: Dec. 11, 2015 CITIZENS CLUB Type: Employer’s withholding, ABLE COUNSELING & 877 E. 185 St., Cleveland unemployment ASSOCIATES INC. Date filed: Sept, 3, 2015 Amount: $11,607 14100 Cedar Road, Date released: Dec. 11, 2015 Suite 300, Cleveland Type: Employer’s withholding KOCON MASONRY & DESIGN LLC Date filed: Dec. 11, 2015 Amount: $21,375 558 Vineland Road, Bay Village Type: Failure to file complete Date filed: Dec. 11, 2015 return, corporate income ATLANTIS CO. Type: Employer’s withholding Amount: $9,765 105 Ken Mar Industrial Pkwy., Amount: $10,445 Broadview Heights AMERICORE EMPLOYMENT LLC Date filed: Oct. 13, 2009 CARS COLUMBUS LLC 5933 Mayfield Road, Date released: Dec. 11, 2015 8004 Lorain Ave., Cleveland Mayfield Heights Type: Employer’s withholding Date filed: Dec. 11, 2015 Date filed: Dec. 11, 2015 Amount: $162,071 Type: Employer’s withholding Type: Employer’s withholding Amount: $10,313 Amount: $9,222 ATLANTIS CO. 105 Ken Mar Industrial Pkwy., R ENGINEERING TEAM LLC CIVIL CONSTRUCTION SERVICES INC. Broadview Heights P.O. Box 91746, Cleveland 4500 Lee Road, Suite 230, Cleveland Date filed: Aug. 3, 2010 Date filed: Dec. 11, 2015 Date filed: Dec. 11, 2015 Date released: Dec. 11, 2015 Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding Amount: $10,304 Amount: $8,077 Amount: $68,895

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PAGE 14 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS Firms fighting rising health costs

BY RACHEL ABBEY MCCAFFERTY ance brokerage Hylant Group Inc. in Chip Gear. Both years started out in the dou- Health insurance plans are diffi- Independence. The prototyping and production ble digits, but the company was able cult for a company to plan for, Chip [email protected] Some have increased limits, while company, which HR/payroll man- to get this year’s increase reduced to Gear said, adding that his insurance @ramccafferty others have started offering more ager Nicki Gear said has about 76 7% or 8%. company has been good about choices of plans for employees. employees total and 55 on its health It makes a big impact, because it prepping him for changes. When Darrell McNair, president While there was fear that companies insurance plan, has been offering could add up to $10 off a paycheck. “Medical, we go in and it’s a wild and CEO of MVP Plastics Inc., went would stop offering insurance, that this since 2010. “That’s real money,” he said. card,” he said. to renew the company’s health care hasn’t borne out. Ligus said aside from these more Pipe, tube and roll form tooling But it’s also one of the most im- plan for 2016, he learned that the re- Companies have been moving to- familiar options, there’s been maker Roll-Kraft in Mentor took a portant things the company does to newal rate for an unchanged plan ward a model where employees act greater interest in self insurance, in creative approach to its insurance in keep employees, Gear said, though would mean an 11% increase. more like consumers when they go which an employer pays insurance 2015-2016 with a shared funding it does affect the company’s ability He had his provider look into what to the doctor, instead of just going claims as they come up, rather than it would be if he abandoned the plan ahead and getting a lot of tests done, trading premiums for assumption of and went to the Affordable Care Act said benefits consultant Dan Bilek of risk. Historically, this is something marketplace. McNair learned that Solon-based human capital man- companies with 100 to 150 employ- Companies have been moving toward a the best deal would still increase his agement firm CPI-HR. Northeast ees or more would start to explore. premium, as well as the co-pays and Ohio was a pretty early adopter of But that limit has “come down model where employees act more like deductibles for employees. some of the alternative plans, in- considerably,” Ligus said, and com- He decided to stick with his origi- cluding health savings accounts, or panies of all sizes are looking into it. consumers when they go to the doctor, nal plan, because he didn’t think the HSAs, he said. One of those companies was cus- alternative was good for workers. tom injection molder MVP Plastics instead of just going ahead and getting “I don’t like it,” McNair said. “It in Middlefield. unfairly burdens employers and em- Multiple options McNair said he started looking ployees.” At cutting toolmaker E.C. Kitzel & into it for this year, though he’s opt- a lot of tests done, said benefits It’s a familiar story for business Sons Inc. in Cleveland, the company ed to not make that change, as long owners, who have been struggling to offers employees a choice between as his company is grandfathered in. consultant Dan Bilek of Solon-based keep up with rising health insurance an HSA plan with lower premiums, But McNair said he would opt for a costs. And manufacturers in partic- a standard deductible plan and a self-insured model before going to human capital management firm CPI-HR. ular point to those increases as a higher deductible plan, said presi- the marketplace. The company has concern. dent Tom Schumann. about 70 insurance-eligible employ- The most recent outlook survey Employees on the lower de- ees, with about half who use it. plan, said president Sanjay Singh. to give pay raises. from the National Association of ductible plans pay the difference He referred to it as a quasi-self- Nicki Gear said the company Manufacturers listed rising health over 12 months, and the company insured plan, where they signed up wants to keep offering auxiliary ben- care-related costs as the second- makes a payment to employees who Something wild for high deductibles and lower pre- efits, but if prices continue to in- largest “primary” business chal- choose the HSA, because the premi- Self-insuring has become more miums. The coverage offered to the crease, they will have to look into lenge, behind only unfavorable ums are lower for Kitzel. realistic with the increases in health nearly 100 employees on the plan, as whether it’s worth offering options business conditions. But local com- Schumann said he’s looked into care, said Pradeep Saha, CEO of well as their rates and contributions, like dental. panies say offering health insurance ACA compliant plans a few times, Cleveland-based gear maker Hors- looks the same. Singh of Roll-Kraft said offering and other benefits gives them a but they’re substantially more. burgh & Scott. The company’s broker looked at benefits is critical for retention. competitive advantage when it The company, which has about 32 He has looked into it in the past Roll-Kraft’s claims and told them He said he recently received an comes to retaining employees, so employees, will be required to make and said he plans to research it again they were paying a lot in premiums, application from someone who was it’s a challenge they have to tackle. the switch in 2017, he said. in 2017. The company has about 160 Singh said. Under this plan, they looking to change jobs because his The rising cost of health care has The Technology House in Streets- hourly and salaried employees. took on some risk, but it worked out, employer decided to stop offering led companies to try a few different boro also offers multiple plans — Horsburgh & Scott has seen “sig- though he expects prices to rise in insurance. tactics, said Steve Ligus, vice presi- one in which rates increase and the nificant” increases the past two May because prescription prices “We’re a growing company,” Singh dent of employee benefits at insur- other with higher co-pays, said CEO years, Saha said. have been increasing. said. “We want to retain people.”

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 15 Focus

MIDDLE MARKET ECHO’S GROWTH - P. 16 z ADVISER - P. 17 z TAX TIPS - P. 19 Heinen’s catering to downtown markets Early success of East 9th Street store has added to amenities city has to offer, visitors say

BY DOUGLAS J. GUTH

[email protected]

It has been almost a year since Heinen’s opened its downtown supermarket in the historic Cleveland Trust Building. Tom Heinen, who owns the grocery chain along with his twin brother, Jeff, is happy with the impact his new store has had on both Cleveland’s image as well as the company’s bottom line, even if there’s still room for improvement. “It’s doing better than my worst fear and not as great as my greatest hope,” said Heinen, somewhat tongue-in- cheek. The 27,000-square-foot store on the corner of East 9th Street and Euclid Avenue, which welcomed its first shoppers on Feb. 25, 2015, is performing as projected in a downtown continuing to cultivate its residential base, Heinen said. “Urban stores by definition cater to smaller basket sizes, prepared foods and people looking for quick-meal solutions,” he said. “It’s a good location, even if we’re a little ahead of the population.”

Making a commitment Heinen’s has 18 Cleveland-area locations, with a 26,000- foot-store set to open in Chagrin Falls this fall. The $600 million company, a third-generation grocery business founded in 1929 by Joe Heinen, has four other stores in suburban Chicago. Although the downtown Cleveland store is the chain’s only urban location, its early success has helped re- inforce Heinen’s as the region’s longtime local grocer. “People want to get back to basics by supporting local food,” Tom Heinen said. “We made a commitment to the city and got some great publicity by going downtown.” A foray into the heart of Cleveland has come with a learning curve, he added. Apartments with limited kitchen facilities mean shoppers may need hints on how to prepare a steak or other items over an electric burner. Display cases in the store’s central rotunda packed with meat, fish and prepared foods can be great places for downtown’s young professionals to get cooking advice. “In the millennial lifestyle, there may not be as much cooking from raw ingredients,” Heinen said. “We’re

HEINEN’S GROCERY STORE SEE HEINEN’S, PAGE 18 20160208-NEWS--16-NAT-CCI-CL_-- 2/4/2016 2:20 PM Page 1

PAGE 16 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS MIDDLE MARKET ECHO Health’s sales grew 27-fold in five years Millennials, it’s

BY CHUCK SODER care payments industry, so Davis of- time to meet fered them a deal: The companies [email protected] could keep the $1 million in cash @ChuckSoder that remained on the joint venture’s Generation Z balance sheet if he could keep the These days, a lot of startup com- intellectual property. BY DOUGLAS J. GUTH panies focus on building a “mini- Though it turned out to be a fan- mum viable product” — the sim- tastic bargain for Davis, times were [email protected] plest version of a product that a tough in the early years. Like many customer might actually buy. entrepreneurs, he had to rely heavily When college graduate Rachel Bill Davis didn’t do that. on credit cards and his personal sav- Nicholson joined brand develop- And that’s one reason why ECHO ings. But in the early 2000s, ECHO ment firm Studio Graphique as a Health didn’t fall to pieces as sales Health started winning more and full-time design consultant last June, grew from $2.4 million to $66 mil- more customers, since it allowed she heard all the jokes about fetch- lion in just five years. them to spend less time and money ing coffee and the other less-than- The Westlake company was able you know, you’re going to be pro- money would be delivered via a vir- printing physical checks, shipping fulfilling tasks those new to the to process $10 billion in health care cessing $100 billion,’ ” Davis said. tual card, an electronic check or a them and managing the process. workforce have to endure. claims last year partly because of a But it didn’t really start needing printed check. HealthSCOPE Benefits came on as However, like many of her con- decision Davis made when he start- massive scalability until 2010. That’s “We were breaking ground then. a client about five or six years ago, af- temporaries in Generation Z — clas- ed developing the technology back when ECHO Health released a tech- No one was doing anything like ter ECHO Health had started expand- sified by many as those born in the in the 1990s: He wanted the software nology that gave its clients an easy this,” Davis said, noting that ECHO ing its capabilities. HealthSCOPE mid-to-late 1990s, on the cusp of the to be able to process billions upon way to take advantage of a new pay- Health offers even more payment CEO Joe Edwards said the Westlake so-called millennial generation — billions of dollars — if needed. ment option in the health care in- options today. company’s technology gave him con- Nicholson desired meaningful work Granted, unlike other entrepre- dustry: The virtual card, which al- The company got two major fidence that he would know “where in an atmosphere that supported her neurs, he didn’t have to build a se- lows health care providers to accept clients to start using the waterfall every dollar was going.” The Little talents as well as her opinions. ries of cheap prototypes in an effort Rock, Ark.-based company gets daily payments via payment card net- technology in 2010, and “the volume Nicholson, 22, said she has re- to figure out what customers would works run by companies like Visa just exploded from there,” according records confirming the location of ceived all she could want and more actually buy. Davis had an advan- and MasterCard. to Kristopher Kern, vice president those dollars. in her eight months with the design tage, though. He originally designed The growing number of payment and chief financial officer. “The money is taken care of. There company based out of Shaker the software for one customer and options presented an opportunity The result: ECHO Health’s rev- are no loose ends,” he said. Square. Among her recent assign- one customer only — a joint venture for ECHO Health. Not only did it enue was more than 27 times higher He also lauded the system’s scala- ments was creation of signage for the formed by Chase Manhattan Bank start processing virtual card pay- in 2015 than it was in 2010. The size bility. latest Progressive Field renovations. and Tandem Computers. ments, but it developed a system of its staff has grown, too. It employs Davis is really hoping to see just So he knew exactly what they that would allow its clients — the 44 people today, up from 13 in 2010. how scalable the system is. By the “I immediately felt like a team wanted: A system that would allow third-party administrators who Notice that the revenue is growing end of 2016, ECHO Health expects to member that had a part in what the them to take lots of payments head- manage corporate health plans — to faster than the staff. That speaks to be processing claims at a run-rate of company was doing,” said Nichol- ed to the same health care provider automatically select the best pay- the scalability of the company’s soft- $18 billion per year. And in 10 years, son, who also interned with Studio and combine them into a single ment option, taking into account ware and its business model, ac- the company aims to hit that dollar Graphique in summer 2014. “I’m not check. It had to work perfectly, and their preferences and the prefer- cording to Davis. figure Davis has been preparing for just taking orders and producing it had to be extremely scalable from ences of the health care provider. He formed ECHO Health in 1997, since the ’90s: $100 billion in claims someone else’s work.” the beginning. In other words, the so-called “wa- after both Chase Manhattan Bank processed per year. The University Heights native’s “We were dealing with very big terfall” system would consolidate and Tandem Computers were ac- “We’re not even close to that now, workplace wishes are echoed by guys who said, ‘Oh, you’re going to payments going to a single provider quired by other companies. The new but we could do that $100 billion if other newly minted grads ready to want to design it this way, because, and then determine whether the owners had no interest in the health we had to,” he said. SEE GENERATION Z, PAGE 19

CONGRATULATIONS

Newly Elected Officers and Board Members of Cleveland Plumbing Contractors’ Association

Daniel Miller, Vice President Miller Plumbing and Heating Co.

Terry Bumgarner, Treasurer Coleman Spohn Corp.

John Marotta Chairman of the Board Ridge Plumbing Inc.

Jeffrey Epstein, Board Member Commerce Plumbing

Michael J. Gallagher Board Member John F. Gallagher Co.

James J. Roddy, Jr. James E. Jones, Board Member President of CPCA Jones Technologies Enterprises, Inc. President of Northern Ohio Plumbing Co., Inc. Layne Kendig, Board Member Relmec Mechanical, LLC

Timothy Lavelle Board Member Gorman-Lavelle Corp.

Scott Wallenstein Board Member THE CLEVELAND PLUMBING CONTRACTORS’ ASSOCIATION, INC. Neptune Plumbing and Heating Co.

950 Keynote Circle Keith Willkomm Suite 40 Board Member Cleveland, OH 44131 United Mechanical Contractors, Inc. Phone: 216.459.0770 Thomas Wanner www.mapic.org/members/cpca Executive Director 20160208-NEWS--17-NAT-CCI-CL_-- 2/4/2016 2:32 PM Page 1

CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 17 “EasyOur customers to say we’rework … with” ADVISER: Julie Boland

Build a relationship with a cooperative bank. The Middlefield Banking Company Asking the right questions has been supporting local business since 1901. Our technology has changed, but our philosophy hasn’t. We’re still Dedicated to Your Future with: Momentum is on Cleveland’s side. We’re experiencing an uptick in economic and cultural growth. Our city • Commercial Lines of Credit • Real Estate Loans hosted the 2013 National Senior Games and the 2014 Gay Games, we’ve seen new jobs created in the • Merchant Capture through • Cash Management health care and technology industries, and we’ll be welcoming the Re- publican National Convention this summer. Cleveland, let’s embrace these changes. Let’s prove every day — de- The Middlefield spite the naysayers — that we are and will remain a center of industry and Banking Company culture in the region, the country and Boland is the Cleveland office the world. 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PAGE 18 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS MIDDLE MARKET HEINEN’S CONTINUED FROM PAGE 15 A unique destination also serve as an anchor for a popula- adapting to what our customers are tion expected to balloon to 18,000 Heinen’s has no current plans to telling us.” within the next two years, said expand into other urban centers, ac- Andrew Zelman, 33, visits the Michael Deemer, executive vice cording to its owners. Instead, the president of business development downtown Heinen’s a couple of company will take additional steps days a week for lunch or to grab an with the Downtown Cleveland Al- in making its downtown store a liance. easily prepared meal. unique destination. For Zelman, it’s a matter of conve- More than 300 apartment units A second-floor mezzanine, for ex- came online in 2015 alone, with nience, as his office at the Euclid ample, will continue to be a wine- Media Group is nearby, while his mixed-use residential projects in- and beer-tasting area with cafe ta- cluding the 925 Building on Euclid residence at the Ivory on Euclid is bles and banquets. next door to the bank-turned-gro- Avenue currently in the works. While traditional grocery shelves Retail development like a new fur- cery. and aisles draw the everyday shop- niture store on East Ninth Street and “There was such a big hole on that per, area office workers can enjoy a 4,200-square-foot clothing and ac- corner,” Zelman said. lunch under a stained glass-topped tivewear store next to Heinen’s can “Now it’s both a grocery store and ceiling as live music drifts down be viewed as spinoffs of the urban an attraction.” from above. supermarket, Deemer maintained. Zelman, who has lived downtown Cleveland resident Cory Johnson, “The store’s presence is becoming with his wife, Shannon, for three 26, made his first trip to the new fa- a key piece to the amenity package years, previously shopped at the cility on a Saturday afternoon in late Cleveland offers,” he said. West Side Market or Constantino’s January. Preserving the building’s historic Market in the Warehouse District. Johnson came to buy groceries nature and charming design does A centrally situated, full-service but stayed to enjoy a glass of wine not mean the Heinens have lost shopping experience is critical for a while gazing at the store’s distinctive sight of the bigger picture, howev- metro aiming to increase its popula- architecture and artwork. er. tion to 25,000 within 10 years, he be- “This is bringing a culture and so- “We’re still a grocery store,” Tom *U.S. News & World Report Ranking lieves. phistication downtown,” Johnson Heinen said. “This store is another checkmark said of the refurbished 1908 Cleve- “You can’t develop downtown liv- that Cleveland didn’t have previous- land landmark. ing without the basics. We’re very ly,” Zelman said. The $10 million-plus store can excited to be here.”

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 19

FIG. 4-B Nice house

Successful in business TAX TIPS: Carl Grassi Family person Consider classifying as an S corporation Congress’ year-end legislative native to dividends. bonus to business owners in the form The most significant tax issue for a of the Protecting Americans from Tax C corporation is when the business is Hikes Act of 2015 included the per- sold in a transaction structured as an Par golfer manent enactment of several benefi- asset sale. In these transactions, the cial tax provisions that previously C corporation pays tax on the gain at Makes a diff erence had only been extended from year to ordinary income rates, and a second in the world year. The permanent enactment of level of tax is paid by the sharehold- G o o d one such provision — the reduction ers on the distribution of the sales neighbor in the built-in gains (commonly proceeds. Assume the assets of a C known as BIG) recognition period — corporation (with no basis in its as- should cause C corporation business sets) are sold for $10 million. The tax What’s better than a well-balanced portfolio? owners to consider an S corporation on the sale would likely be close to election for 2016. $3.5 million for the C Corporation. A well-balanced life. The shareholders would in most cas- Grassi is president of McDonald C corporations can be tax efficient At Akron Community Foundation, we can help simplify giving to your in years that dividends are not paid. es pay another 23.8% tax on the after- Hopkins LLC. In fact, tax rates for C corporations are tax proceeds from the sale, for an ad- favorite nonprofits — leaving you more time to focus on what matters. in most cases lower than the rates for ditional tax of nearly $1.55 million lar business, the amount of gain sub- A Donor-Advised Fund off ers significant tax advantages and no start-up and a total tax bill of more than $5 S corporations. This tax efficiency for ject to the BIG tax is limited to the costs. What’s more, we handle all the paperwork and off er important C corporations is lost, however, if div- million — more than half of the sales gain built into the assets at the time idends are paid by the C corporation, price for federal taxes alone. Com- of the S election. data on local nonprofits, helping you make informed giving decisions. because dividends will generate a sec- pare this to a probable total federal When the company sells its assets It’s a balanced approach to giving, so you can lead a balanced life. ond level of tax to be paid by the tax of $2.38 million if the business for $10 million in 2020 (prior to the shareholders at rates as high as 23.8%. was taxed as an S corporation. If the expiration of the five-year BIG recog- In the early years of a business owners are active in the business, the nition period), the BIG tax is only ap- PHILANTHROPY where profits are put back into the tax bill would be even lower. plicable to the $3 million in “built-in FOR THE BUSINESS SAVVY. business, C corporation status may A common reason for not making gain” that existed in 2016. The $7 make sense. When the business ma- an S election is exposure to the BIG million balance of the gain is taxed tures and profits are available for dis- tax that S corporations pay if assets only once at the lower individual cap- Download our free Guide to Donor-Advised Funds at tribution, the second level of tax on that were held when the business was ital gains rates, even when the pro- www.akroncf.org/life. Or, call us at 330-436-5610. dividends makes C corporations very a C corporation are sold during a pe- ceeds from the sale are distributed to inefficient from a tax standpoint. This riod of time, historically 10 years, fol- the shareholders. might cause the business owner to lowing the S election. While Congress Of course, there are very specific hold the cash in the corporation to has made changes to the 10-year requirements that must be satisfied avoid the double tax, but if a C corpo- waiting period from time to time over for a business to qualify to make an S

35th Anniversary

ration accumulates too much cash, the last decade, often these changes election, but many closely held busi- 35th Anniversary

VOL. 36, NO. 47 35th Anniversary the Internal Revenue Service will as- were made at the very end of the year, VOL. 36, NO. 47 nesses will satisfy these require- CLEVELAND BUSINESS PROMOTE. VOL. 36, NO. 47 NOVEMBER 23 - NOVEMBER 29, 2015

ALLYSON O’KEEFE, 37 Partner; Porter Wright

Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been pro- when it was much too late to do any moted to real estate partner. sert a penalty for accumulating earn- “Young professionals who live downtown are so excited about the city,” said O’Keefe, a ments. An S corporation election for Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t take it for granted.” When O’Keefe is not working or spending time with her husband and two children, she can be found volunteering on the boards of nonprofit organizations and watching college football.

WHAT INSPIRES YOU ABOUT YOUR WORK? Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obviously a lot of excitement around real estate development. I started in 2004 when we were crazy busy with development. That was sort of the boom from ’04 through ’08. I saw it go through Why not? the downturn, then I saw it rise again, even stronger than before locally.

MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS THAT AN AREA OF EXPERTISE? Yes, definitely. Real estate is extremely interesting because every deal is differ- tax planning. The 2015 Act, however, ent. You can never get bored because there’s so much variety there, from tax ings beyond the needs of the busi- credits to historic renovations, from ground-up development to rehab, from 2016 is due March 15. Because of the mixed-use to residential.

HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? I definitely believe in leading by example. I expect the people with whom I work, my associates, to work hard, and they see me working very hard. For me, it’s all about working hard and doing good work.

WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON THE FLATS EAST BANK PROJECT? “Allyson is extremely bright and quick witted, but what truly distinguishes her from most successful attorneys is her exceptional people skills. She has an uncanny ability to encourage the ‘adversaries’ in her negotiations to work in concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project. ness. Other methods of taking profits permanently reduces the waiting pe- reduction in the BIG recognition pe- — Lee Chilcote Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved. For more information contact Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040 out of a C corporation, such as riod to five years. riod, this is a good time to review Krista Bora, Reprint Account Executive salaries to shareholders/employees, Even if the five-year timeframe is those requirements and consider or [email protected] • tel 212.210.0750 are not an effective long-term alter- too long for the exit plan of a particu- reconsider the S election.

set and dining etiquette. “We’re building a relationship with How close is your business to GENERATION Z students while educating them about our brand and the value of working our 100% owned and operated CONTINUED FROM PAGE 16 eration,” said Cary Chaitoff, director here,” Matuszewski said. tackle their first job. Compared to of marketing at Skoda Minotti, a cer- Explorys, a downtown health care KLJKVSHHG²EHUQHWZRUN" the current crop of millennials, re- tified public accounting and consult- intelligence cloud company formed search shows that members of Gen ing firm headquartered in Highland out of the Cleveland Clinic in 2009, Z choose opportunities for career Heights with offices in Akron and hosts an annual recruiting event to growth and work-life balance over Tampa, Fla. “They want to be heard draw mission-oriented software engi- salary when selecting a business to and have their voices be acted on.” neers more interested in improving work for. In addition, this demo- The company engages in an exten- quality of life than selling a product. graphic prefers in-person communi- sive college recruitment effort that in- “Being on the leading edge of tech- cations with managers as opposed to cludes internships for juniors and se- nology is exciting for them,” said CEO emailing or instant messaging. niors. Skoda Minotti’s operational Steven McHale. “This is an environ- While Cleveland-area employers transparency, promoted with respect ment where these kids can thrive.” are still hiring older millennials, the to the millennial craving for instant Members of Generation Z are ex- opportunity to catch the next wave of info via social media, has helped re- pected to be even more entrepre- workers means responding to their sult in an 80% retention rate over the neurial, loyal and realistic in their ap- aspirations in some important areas, last two years from internship to full- proach to careers when matched up observers said. time work. Chaitoff expects that to millennials. Entering the working world post- trend to continue moving forward. Ernst & Young offers new employ- recession has made Generation Z “This (Generation Z) grew up with ees continued education via “EY and more career-oriented and better pre- information at their fingertips,” he you (EYU),” said Matuszewski. The pared for life after college, according said. “They want to understand the program teaches general business to a recent study from research firm culture they’re going to be growing skills along with career development, Millennial Branding, which queried into.” Contrary to the assumption with counselors available on-site for Find out by searching for your building about 1,000 individuals ages 16 to 32 that younger workers want constant instant feedback and assistance. across 10 countries. About one-third connection to technology, 51% of “On campus, we’re mentoring fu- on our Network Availability Map at of Generation Z respondents (34%) Generation Z participants in the Mil- ture professionals,” Matuszewski said they were most motivated by op- lennial Branding report said they pre- said. “But when they join us, EYU is a HYHUVWUHDPQHWRXUQHWZRUN portunities for advancement, fol- fer face-to-face interactions over the framework that’s front and center lowed by more money (27%) and less-than-personal electronic variety. throughout their careers.” meaningful work (23%). This com- Accounting giant Ernst & Young Ultimately, employers have an op- pares with 38% of Generation Y par- provides those connections as early portunity to build retention by ad- ticipants — those commonly referred as a prospective employee’s fresh- dressing the factors that motivate a to as millennials, typically born be- man year of college, said Joe Ma- new generation to work hard and stay tween the 1980s and the year 2000 — tuszewski, an assurance partner and on board. Nicholson of Studio who cited money as their top incen- recruiting leader for the company’s Graphique felt welcomed at her firm tive. Gen Z also has a slightly stronger Northeast Ohio offices. After identify- right from the jump, and has no desire for managers to listen to their ing a potential staff member, the firm plans on leaving any time soon. ideas (61%) over Gen Y (56%). maintains that rapport through cam- “People are very nurturing here,” “Owning their career and control- pus-based workshops on resume she said. “I knew this would be an 216.923.2280 everstream.net ling their fate is relevant to this gen- writing, thinking with a global mind- environment where I could grow.” 20160208-NEWS--20-NAT-CCI-CL_-- 2/4/2016 3:25 PM Page 1

PAGE 20 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS Business of Life A wine built by winter BY JEREMY NOBILE

he traditionally harsh winters in Northeast Ohio are A pour is usually only a couple ounces for a couple reasons. Once frozen, the dehydrated grapes as hard as marbles are warmly welcomed by at least a handful of people: Those The taste can be intense, and it’s inherently more expensive. smashed using a special, wood basket press, releasing an ex- T who see the season’s first deep freeze as a harbinger of It’s generally not a wine most will be quaffing by the glass ceptionally sweet, syrupy, concentrated juice. the ice wine season. during that relaxing summer afternoon on the deck. There’s also no cellar process with ice wine, which is what The sweet libation can be enjoyed year-round, of course, de- Gene Sigel, owner of South River Vineyard in Geneva, has creates the unique features of other wines. The juice is simply spite being most suited for special occasions and particular been producing ice wine since 2001. He said that around here aged until fermented and bottled. palates. bottles may go for $28 to $50. In Canada, where ice wine is even A small but devoted following for the wine has materialized Ultimately, though, it’s because of the unique climate in more popular compared to the United States, they’re more like here since a variety of Northeast Ohio wineries began produc- places like the Great Lakes that ice wine even exists. Northeast $75-$100 each. Some of the most expensive wines hail from ing it within the past 15 years or so. That’s when interest in ice Ohio is among only a couple regions in the country, and even Germany. The naturally occurring frost is the key to the process. wine began to trickle down from Canada, Sigel said. the world, where grapes can be harvested in a fashion true to That’s why ice wines aren’t coming from California. Farmers At Sigel’s winery, only a tiny sliver of all the grapes grown are the ice wine style. typically harvest all their grapes lest they die in the frost, but collected in winter for ice wine. But he estimates ice wine sales Roughly twice as sweet as an average sweet red, ice wine is wineries in areas where winters come fast and cold, like North- still make up about 10% of all retail sales — he doesn’t ship out the epitome of the narrowly defined dessert wine category. east Ohio, may leave some grapes on the vine to use for ice wine their ice wines and only sells the wineries two ice wine varieties Considering that, Donniella Winchell, executive director of because they’ll freeze quickly and without spoiling. from the Geneva store. the Ohio Wine Producers Association, suggests that ice wine is Sigel harvested ice wine grapes in January — a function of the Interest has definitely grown over time, Sigel said. the dessert. uncharacteristically mild winter we’ve had so far that actually For example, in 2003, Northeast Ohio wineries joined togeth- However, ice wine, which is particularly fruity and aromat- caused some farmers to lose some, if not all, of their fruit this er for the first Grand River Valley Ice Wine Festival. The event ic, is generally paired with similarly sweet treats like chocolate season to spoilage. has grown from just one Saturday afternoon in March to three. almonds or cheesecake, for example. It might also be enjoyed Grapes with tough skin are best suited to withstand the shock This year’s festival will be held from noon to 5 p.m. on three with other rich dishes, like foie gras, Winchell said. of the temperature swing. Sigel uses Vidal Blanc or even Con- Saturdays next month — March 5, 12 and 19. The taste is unique and may be off-putting to some, but even cord. The former has been the most popular, he said. The lat- “The festival was started as a way to get people out to the fans tend to drink only a little at a time. It’s thicker compared ter, by comparison, has a more jam-like taste compared to the wineries in the off months,” Sigel said. to other wines and usually served cold. former and a less-dry sweetness. “It’s definitely a specialty for our region.”

We don’t just see people for who they are; we see 20160208-NEWS--21-NAT-CCI-CL_-- 2/4/2016 3:27 PM Page 1

CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 21

Above, the vines that are used for growing the ice wine grapes at South River Vineyard in Geneva, just a few weeks after harvest. Below, owner Gene Sigel stands in front of the special presses used for making the ice wine. (Rebecca R. Markovitz photos) In the past nine months, 98% of kids participating in United Way-funded literacy programs are now reading at grade level.

them for who they can become. 20160208-NEWS--22-NAT-CCI-CL_-- 2/5/2016 11:05 AM Page 1

PAGE 22 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch

The same sense of altruism that led Thomas Campanella to serve as a Cleveland City Councilman years ago drove him to a 35-year career in health care. Campanella, now the director of the health care MBA program at Baldwin Wallace, said politics turned out not to be for him, but consulting work gave him experience and a start in health care, which he calls the best of both worlds — alturism and business. His health care experience ranges from legal to insurance to financial to education. Though he stepped back from formally teaching at Thomas Campanella Baldwin Wallace last semester, he remains involved in the classroom. There, and in his role as director, he continues to help train leaders and future leaders in health HEALTH CARE care. — Lydia Coutre

What has changed the most What are the biggest issues Any advice for people in the in your 35 years in the they’re trying to address in the health care field who are FIVE THINGS: health care industry? classroom and in the industry? considering stepping into the It has become a business with Well, everything’s different, but I administrative, management or WHAT FICTIONAL winners and losers from an think the cost side of the business side of health care? CHARACTER DO YOU organizational standpoint, but it equation is a major part of it. As they look at our program or IDENTIFY WITH? also has advanced tremendously, Because if you’re a health insur- any of the others that are out LUNCH SPOT Peter Pan. I don’t want to and I think the speed of it has ance company, for example, and there, a couple of things. One, as Cornerstone been just phenomenal in different you work there, you know the you can see from the stock grow up. I don’t want to give up. Brewing Company ways to be able to address the cost side because employers market and what it’s going 58 Front St., Berea big three of health care: costs, have to pay for it. … If you’re a through right now, investing in the cornerstonebrewing.com access to care and quality. hospital or a physician group, you market can be a real challenge. WHAT BOOK ARE 440-239-9820 know funding for health care for But I think over time, based on Is there a specific set of experi- Medicare employers and that long-term returns, investing in YOU READING? ences or goals that make peo- there’s a big strain in regards to yourself is the most important “The Quest” by Nelson The meal ple a good fit for the program? how much money is available to thing, and so I think that’s really DeMille. (He reads two or Bourbon-glazed salmon fund it. There’s not unlimited critical. One form of investment All of our students work in the three at once. One on tape with wild rice, sauteed dollars, so you need to find a way obviously is education. There’s health care industry, first of all, so in his car, another on his vegetables and a decaf to do it better. And then within different ways to do that. I think we don’t have kids right out of coffee; spicy black bean that context, the quality side of it as you evaluate the different nightstand and one on his college that don’t have a job in the veggie burger with where now that we’re finally programs, one of the key things Kindle while he’s on the industry. Diversity is probably our coleslaw and an iced tea. biggest value … . We’ll have people changing the way we pay and you need to do is get an treadmill.) with strong clinical backgrounds, trying to focus more on value and understanding of the students sales, marketing, health insurance, health and wellness, there’s a that are in the program. Because WHAT DID YOU THINK The vibe focus of hey, if we can keep your fellow students really set pharmaceuticals, pharmacists, YOU’D GROW UP TO BE? The small brewpub fits in people in public policy, government people healthy, it’s a classic win- the stage overall for the quality win. of the program. … And I think it’s A history professor maybe well with a small college relations — all different town. The restaurant, backgrounds. And we sort of get important to talk to alumni and at a high school level. Where do you hope to see current students to get their which has a second loca- them in the classroom where tion in Madison, was pret- basically they’re bouncing off of this program progress? feedback, especially the alumni as to what they were able to do. MORNING ROUTINE? ty quiet during a weekday each other, which really makes it We’re evaluating — I’m not saying I lunch with a couple of even that much more interesting. want to do this — online and That’s one area we’re really proud I work out in the morning. of is our alumni are in leadership patrons nursing drinks at About 50% of the work is team- hybrid over and above what we That’s how I start my day. the bar and several based, so you’re with people with were doing. The classroom experi- positions throughout health care in Northeast Ohio and outside of (Three days a week he seated for lunch. different backgrounds. We’re ence has been so rich and in plays full-court basketball Cornerstone’s menu really breaking down the silos of getting feedback from alumni, Northeast Ohio, and I think that’s an important thing to be aware of. at 6 a.m.) offers a decent selection, healthcare. People that normally they really don’t want to water from pizza and burgers to wouldn’t interact with each other that down. So we’re very sensitive some seafood and a cou- in health care are now interacting, about doing that. SKILLS OR HOBBIES? ple of vegetarian options. so I think it even adds to that Basketball and tennis are much more excitement, not just in my sports. And then ge- the classroom but for what these The bill people can do after they graduate. nealogy, which I really love. $28.05, plus tip 20160208-NEWS--23-NAT-CCI-CL_-- 2/5/2016 3:46 PM Page 1

CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 23

it’s done is killed the personality of Goldhammer said. “I don’t see it as radio.” a threat. We don’t see ourselves as PODCAST To which Jackson quickly added, traditional radio, either. Most of the “They train these guys to say, ‘Hey, people who listen to us aren’t listen- CONTINUED FROM PAGE 1 what do you think? Call!’ No! We ing on traditional radio anyway.” stations is the podcast lets them say could have a live phone line (during What Jackson and Knott bring to things they couldn’t in a more tradi- podcast recordings). We’d never an- their podcasts is so nontraditional, tional format. swer it.” however, that Lyndall and others be- “The one thing about the podcast, I lieve A to Z could eventually gain a would have buddies who have known national following. In some ways, me my whole life and they’d hear me No ‘threat’ to radio? they already do — Jackson said 16 on the radio and be like, ‘Yeah, that’s Anthony Lima, a 92.3 personality people in Hawaii listened to their cool, but that’s not you,’ ” Knott said. who has made a couple appearances breakdown of the Golden State War- “They hear one podcast and they go, on the A to Z podcast, works in the riors’ destruction of the Cavs on Jan. ‘Oh my God. That’s you.’ It’s helped medium his friends often criticize. He 18. What’s more certain is Jackson because people get to know us.” doesn’t view independent podcasts and Knott are going to keep trying to as a threat to traditional talk radio. increase their audience and acquire Bulking up its audience “If anything, it can be a supple- more sponsors. ment to what’s already out there,” The current partners are on six- By day, Craig Lyndall works in the he said. “Our shows (on The Fan) are and 12-month trials, Jackson said. family business, Lyndall Insurance in night. By Tuesday morning, Knott is for Knott, who got his start in the podcasts now. We’ve evolved.” A bulked-up website, with a writer Chargin Falls. At night, he is the first busy retweeting and responding to business. Knott still works occasion- Aaron Goldhammer, ESPN Cleve- or two, could be a possibility. And recipient of the latest A to Z podcast. podcast reactions from some of his ally for WTAM-AM, 1100, and Jack- land’s program director and a late- now that they’re “making real mon- “That’s half the fun for me,” said 28,600-plus Twitter followers. son is part of the Browns’ pregame afternoon co-host of the Golden ey,” they soon will sign paperwork to Lyndall, who has hosted more than Lyndall said the monthly listeners crew on WKRK-FM, 92.3, but they Boyz on WKNR-AM, 850, rattled off start a podcast LLC. 450 podcasts for Cleveland sports are already in the “tens of thou- look at podcasts as a medium at a list of podcasts he listens to that “That’s a little bit scary for us,” website Waiting for Next Year and sands.” which they can do and say what they was large enough to fill almost every Jackson said. “But we’re very much has a music-centric Scene podcast. “I “I hope it goes national at some want. hour in the day. He said he’s an A to open to this thing being big. The feel like I get to listen to them first.” point,” Lyndall said. “I think it’s great. “It’s not fun the way the business Z fan, and, like Lima, he takes a door is open for nontraditional me- Once Lyndall is sent the latest A to They’re building an audience. They is set up right now,” Knott said. “I’m there’s-enough-room-for-everyone dia, for podcasts.” Z episode, he checks the audio levels, know how to do radio, but they’re not blaming anybody. It is what it is. approach to podcasts and talk radio. How big it gets, they have no idea. “tunes them up” and posts the show building reps in the podcast world.” You have three companies that own “There’s such an insatiable thirst They just know it will be on their on iTunes. That’s often on Monday Radio is a bit of a sensitive subject every freaking radio station. What for sports content in Cleveland,” terms, and in their voices. 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JENNINGS INDUSTRIAL EXCHANGE 11AM-3PM DUE DILIGENCE INVESTIGATIONS 36 LOTS ON RILEY, RUNDLE, LIVE ONLINE AUCTION AT Global Expansion Consulting WAREHOUSE/STORAGE HENDRIX AND WALCOTT. (800) 690-9409 .5 AC 1950'S APPROX 14,280 SF Construction • Acquisitions PP#11121071. Tax $3,233 yr. Homes starting in the $180-200's Exporting • Financing TH 1052 E. 134 St., Cleveland 613 US Grant St., La Grange 9413 Hamilton Rd., Mentor BUSINESSES (855) 707-1944 SEE WEBSITE FOR MORE DETAILS, PHOTOS AND TERMS OF SALE FOR SALE 216-990-1831 WWW.BIDROSEN.COM BUSINESSES FOR SALE Crain’s Executive Recruiter Real Estate Auction E-MAIL US YOUR AD: Fulfillment Company Opportunity Sales $711,373 Ask $120,000 [email protected] Mailing Company Saturday February 20, 2016, Very Profitable Job Opening: AIA Cleveland Executive Director 10:00 A.M. OFFICE/WAREHOUSE COMMERCIAL Sales $1,082,720 Ask $750,000 The Board of the Cleveland Chapter of the American Institute of Architects is seeking a qualified candidate to fill an immediate open- 2.36 acre industrial lot, Roofing Company Strongsville, Ohio SPACE PROPERTY ing for Executive Director. Our ED is the media-relation face of the Very Profitable chapter locally and the day-to-day manager of active volunteers to The corner of Rt. 82, and Foltz Office/Warehouse Downtown Sales $6.7M Ask $1.8M ensure that AIA Cleveland professionally fulfills its mission. For more Parkway www.empirebusinesses.com information, please visit our website: www.aiacleveland.com/ 4500 sq ft. East 30th & Superior 4800 sq ft office building for sale. See details and pictures at Near Justice Center, Playhouse Square, 440-461-2202 executivedirector. We invite strong candidates to apply by 5pm on jeffbubauction.com Clean, modern space w/ 3 of- freeways. Ideal for law firm, owner Sunday, February 28, 2016 by sending their resume and references Keller Williams fices, conf room, restrooms, occupant. Possible residential use. to [email protected]. Please no phone calls. Questions 18' ceilings, drive-in door, park- $154,900. 2103 St. Clair Ave. B2B SERVICE CO to same email address. Greater Cleveland West ing. $2,200/mo. Jeff Bub Auctioneer www.StClairOffice.com $1.1 M sales. 216-544-6729 216-789-4491 216.235.2597 $275K owner’s income. PUBLIC NOTICE Price - $625K. SW Cuyahoga County. BUSINESS Jim @513-621-0004 or Application has been made to the Federal Communications Commission List your Auction, commercial, [email protected] (FCC) for a new communications structure along railroad right of way near OPPORTUNITY Mile Post B 185.40, Cleveland, OH 44113. The FCC Form 854 file number is A0996643. The structure type is an non-lighted monopole with industrial, luxury home a total height including antenna of 63 feet to tip. Interested persons may DON’T review the application by going to www.fcc.gov/asr/applications and or Retail Space Here! entering the Form 854 File Number. Interested persons may raise FORGET: environmental concerns about the proposed structure by filing a Request Crain’s Cleveland Business for Environmental Review with the FCC. The FCC strongly encourages Crain’s Cleveland Business’ classifieds will help on-line @ you fill that space. interested parties to file online any Requests for Environmental Review; CrainsCleveland.com instructions for making such filings can be found at www.fcc.gov/asr/ For all the latest business environmentalrequest , or by paper copy to FCC Requests for Environ- Contact Denise Donaldson at 216.522-1383 news...online mental Review, Attn: Ramon Williams, 445 12th Street SW, Washington, DC 20554. 20160208-NEWS--24-NAT-CCI-CL_-- 2/5/2016 8:56 AM Page 1

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ENGINEERING & CONSULTING LAW LAW Erik Reynolds, E.I. and Paul Clawson, PMP, RCDD, OSP, Kathleen M. Vlasek Mark D. Weller CWNA Associate Of Counsel Manager of Healthcare & Technology Engineering Manager Benesch Benesch Osborn Engineering Kathleen M. Vlasek is an associate Mark D. Weller is of counsel and Erik Reynolds, E.I. - Manager of Healthcare: While new to the Osborn in Benesch's Real Estate & Environ- brings over 30 years of in-house Engineering Family, Erik brings with him over 20+ years of extensive mental Practice Group. She has corporate and commercial law expe- experience in Healthcare, Science & Laboratory design to manage the healthcare practice. He has experience drafting, negotiating, and reviewing rience as a former in-house General Counsel of inter- successfully filled the roles & responsibilities of PC/PM,Marketing, BD & Director of Healthcare for small retail leases up to 10,000 square feet and national companies where his legal practice included complex projects to $100 million projects in the Healthcare/Lab markets. Erik also brings over 15 years amendments, assignments, extensions, and other all facets of legal representation for his clients in with the Florida Agency for Health Care Administration (AHCA) Office of Plans and Construction. Paul related documents for tenants of all sizes, including North America and at times in South America also. Clawson, PMP, RCDD, OSP, CWNA - Technology Engineering Manager: Paul will be tasked with building assisting with due diligence for and drafting anchor Aaron S. Evenchik the Technology practice, increasing the portfolio of Technology service offerings and expanding the tenant documents related to big box leases with customer base for Osborn Engineering. Previously he spent 1 year with Zenith Systems and 5 Years with national tenants. Partner Beacon Solutions in Cincinnati. Paul has a BA in Finance from the University of Pittsburgh along with Frantz Ward LLP several industry credentials. Robert E. Haffke Frantz Ward LLP is pleased to Associate ACCOUNTING FINANCIAL SERVICES announce that Aaron S. Evenchik Benesch has been named Partner of the firm. Richard O'Callaghan, CISA, Sara A. O'Neil Aaron is an experienced transactional and litigation Robert E. Haffke is an associate in CIPT attorney in the firm's Construction Law Group and Sr. Registered Associate Benesch's Litigation Practice Real Estate Group. His experience includes assert- IS Assurance Senior Manager Group. His practice is concentrated Carver Financial Services, Inc ing lien and bond claims, defending and prosecuting in complex civil litigation involving product liability, BDO USA, LLP claims for and against contractors and subcon- Carver Financial Services, Inc. business tort, and commercial matters. He has tractors, land development deals, as well as Mr. O’Callaghan has over 20 years announces that Sara A. O'Neil has experience in all aspects of discovery and trial significant zoning litigation experience. of professional services and recently joined the firm as a Sr. preparation, evidentiary and privilege issues, leadership experience in IS Audit and Assurance Registered Associate. Sara has 15 years of briefing and motion practice, and appellate practice Todd A. Broski roles. Mr. O’Callaghan has focused throughout financial industry experience and holds Series 7, in state and federal courts. his career on IT governance, risk and compliance 66, and life, health and annuity insurance licenses. Partner and has extensive background assessing, Prior to joining Carver, Sara was a Senior Technical Joel R. Pentz Frantz Ward LLP recommending, implementing, and improving Specialist at Key Investment Services. Carver Of Counsel both IT and business processes and controls. Financial Services is an independent firm.Securities Todd A. Broski has been named a Partner in Frantz Ward's Corporate offered through Raymond James Financial Service, Benesch EDUCATION Inc. Member FINRA/SIPC. and Banking Practice Group. Todd's Joel R. Pentz is of counsel in practice focuses on corporate and business law. He Shawna Whitlock Rebecca Cook Benesch's Real Estate & Environ- has significant transactional experience in complex Vice President for Institutional mental Practice Group and business mergers, acquisitions and divestitures Advancement Senior Human Resource Transportation & Logistics Practice Group, with his representing buyers, sellers and investors in Business Partner practice centered on commercial real estate mat- transactions involving both privately and publicly Notre Dame College Fifth Third Bank, ters, including general development, acquisition, held companies. He provides counsel to companies Whitlock brings 25 years of senior- Northeastern Ohio divestiture, leasing, financing and joint venture dealing with capital formation, corporate organiza- level experience in fundraising, execution, and an emphasis on industrial, logistics, tion, and joint ventures and strategic alliances. Cook is responsible for providing corporate relations, alumni relations and events intermodal and infrastructure assets. strategic and tactical Human Capital initiatives David A. Wolfe management to Notre Dame College from The including strategic planning, consulting, coaching, Cleveland Clinic, where she most recently was Jonathan Todd Shareholder change management, work force planning, talent Senior Director of Development at the Lerner management and employee relations for Fifth Third Of Counsel Weltman, Weinberg & Reis Co., Research Institute. At Notre Dame, she is Bank in Northeastern Ohio. Prior to joining Fifth LPA responsible for the College's efforts in fundraising Benesch Third, she spent seventeen years with KeyCorp, and alumni relations. She reports to President Weltman, Weinberg & Reis Co., LPA where she held a variety of human resource Jonathan Todd is of counsel in Thomas G. Kruczek. is proud to announce the election of positions of increasing responsibility. Benesch's Transportation & Logis- tics Practice Group. Jonathan was David A. Wolfe. Mr. Wolfe, who serves as the firm's FINANCE previously Senior Corporate Counsel with a Trans- Office Managing Attorney for its Michigan office, han- dles commercial collection matters and also works Daniel Luketic LAW port Topics Top 20 motor carrier where he served closely with credit unions across the state. He is a Jeffrey Niemczura the company's domestic motor carriage, domestic Director and international forwarding, customs brokerage frequent lecturer on topics affecting financial institu- eDiscovery Attorney tions. Licensed in Michigan and Oregon, Mr. Wolfe is North Coast Angel Fund and global mobility business lines. His experience admitted to practice before the U.S. District Court Benesch includes a broad range of corporate, transactional, Daniel Luketic has joined North regulatory compliance, international trade, IP, busi- for the Eastern and Western Districts of Michigan. Coast Angel Fund, the US's 5th Jeffrey Niemczura is an eDiscovery ness operations, and strategic planning matters. David S. Brown largest angel fund. Formed in 2006, attorney in Benesch's Litigation NCAF includes three contributed capital funds with Practice Group. With a practice Isaac J. Eddington Shareholder 200+ members. The Funds focus on technology- focused on complex litigation, Jeff has represented Weltman, Weinberg & Reis Co., Of Counsel enabled early-stage and growth equity ventures, clients in a wide array of matters in state and LPA primarily in software and life sciences, and have federal courts, arbitration's, and government Benesch invested in 40 companies. Daniel will be working investigations. He is responsible for analyzing, Weltman, Weinberg & Reis Co., LPA with the NCAF team and a number of the region's advising, and coordinating all aspects of electronic Isaac J. Eddington is of counsel is proud to announce the election of leading investors, entrepreneurs, and business discovery, and has vast experience in developing in Benesch's Litigation Practice David S. Brown. Mr. Brown focuses his practice on leaders who are dedicated to accelerating strategy, controlling cost, and managing discovery Group. He practices in a variety of commercial banking, business-to-business credit, early-stage ventures. and electronic evidence through the life of a case. litigation areas, including complex commercial complex collections and commercial/agency litigation, employment disputes, and banking and matters, and has been recognized by his peers For more information or questions regarding advertising in financial institution litigation. He has also been an and the national legal media with his inclusion in the effective participant in securities law cases and 2012-16 editions of Ohio Rising Stars. Based in the this section, please call Lynn Calcaterra at 313-446-6086 other disputes involving financial institutions, and firm's Cleveland office, Mr. Brown is licensed in or email: [email protected] has participated in the defense of multiple Ohio and admitted to practice before the U.S. consumer class actions and public law cases. District Court (N. District of OH). 20160208-NEWS--25-NAT-CCI-CL_-- 2/5/2016 11:25 AM Page 1

CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 25

LAW MANUFACTURING MANUFACTURING MANUFACTURING Ted M. Traut Ward J. Dumm Nick N. Ezzone Matthew P. LoPiccolo

Shareholder Vice President, Continuous Vice President, Global Sourcing Vice President, Customer Improvement and Quality and Logistics Service and Supply Chain Weltman, Weinberg & Reis Co., LPA Swagelok Company Swagelok Company Swagelok Company

Weltman, Weinberg & Reis Co., LPA Swagelok Company announces the Nick N. Ezzone has assumed the Matthew P. LoPiccolo has assumed is proud to announce the election promotion of Ward J. Dumm to vice newly created role of vice presi- the role of vice president, customer of Ted M. Traut. Mr. Traut focuses his practice on president, continuous improvement and quality. He dent, global sourcing and logistics, Swagelok service and supply chain at Swagelok Company. general consumer collection matters with a is responsible for managing continuous improve- Company. In this role, Ezzone is responsible for He is responsible for leading the areas of customer particular emphasis on insurance subrogation ment efforts, new technology, safety, and sustain- all global procurement responsibilities including and technical service, supply chain planning, services. A member of the National Association ability. Dumm joined Swagelok in 1991 and has held component, raw material, and expense purchasing, forecasting, inventory, and product data manage- of Subrogation Professionals, he is a Certified leadership positions in engineering and operations as well as supplier development and scheduling. He ment. LoPiccolo served as vice president of infor- Subrogation Recovery Professional. Mr. Traut is management. Most recently, he served as director also leads the corporate warehouse and logistics mation services and Chief Information Officer from licensed in Ohio and Pennsylvania and admitted to of manufacturing strategies and engineering teams. Most recently, Ezzone served as vice 2007 to 2015 and successfully led the company's practice before the U.S. District Court (N. District systems. president, customer service and supply chain. recent business systems transformation. of OH) and the Sixth Circuit Court of Appeals. David E. Krabill NONPROFITS REAL ESTATE MANUFACTURING Vice President of Information Bridget DeLeon Mike Corcoran Timothy G Rosengarten Services and Chief Information Grants Manager Certified Property Manager Vice President, Operations Officer The Char and Chuck Fowler Playhouse Square Real Estate Swagelok Company Swagelok Company Family Foundation Services

Timothy G. Rosengarten has been Swagelok announces the promotion of David E. The Char and Chuck Fowler Family Playhouse Square Real Estate named vice president of operations Krabill to vice president of information services Foundation announces Bridget De Services is pleased to announce with responsibility for Swagelok and Chief Information Officer. He is responsible for Leon as the Foundation’s Grants Manager. She will that Mike Corcoran has achieved the Certified Company's general industrial manufacturing leading all functions within information services and manage the grant-making program, work on Property Manager (CPM) designation through the activities. Since joining Swagelok in 2006, he has optimizing the company's new enterprise resource specialinitiatives, and represent the foundation in Institute of Real Estate Management (IREM), consid- held leadership roles in the organization's fitting ser- planning business system. He joined Swagelok in collaborations with grantees and other foundations. ered to be among the industry's premier real estate vices and valve services groups. Most recently, he 1992 and has held leadership positions in key Ms. De Leon most recently served as the Grants management credentials. Corcoran has more than served as vice president, continuous improvement areas, including human resources and customer Managerat the Saint Luke’s Foundation. Previous 15 years of experience of management and real and quality, where he established consistent metrics service. Most recently, he served as director of experience includes grant-making roles at the estate experience. He joined Playhouse Square Real across the organization and continued the develop- information services strategy, governance, and Mandel Foundation and the Morris and Gwendolyn Estate Services in 2011 and currently manages five ment of Swagelok quality methodology. architecture. Cafritz Foundation in Washington, DC. properties. playhousesquarerealestate.com

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PAGE 26 z FEBRUARY 8 - 14, 2016 z CRAIN’S CLEVELAND BUSINESS GE CONTINUED FROM PAGE 1 commercial customers transform lators scuttled the deal. who spoke with Crain’s said they be- how they use energy. Could GE also find a buyer in Chi- lieve GE is trying to sell its lighting Current is commercializing what na? Maybe one that wanted the GE unit, echoing comments that have GE Lighting previously held up as brand? been made by stock analysts. some of its promising technologies. Maybe, but China’s economy is Why? For instance, GE is starting to help slowing, Reid said. Still, he noted For one, GE is trying to get out of cities install LED streetlamps that that GE distribution channels might other consumer-focused businesses. could be used for all sorts of purpos- be valuable to other companies in It sold NBC and GE Finance, and last es, such as monitoring traffic, meas- the lighting business. month it struck a deal to sell its ap- uring snowfall and even identifying Lighting industry veteran Bill At- pliances unit to a Chinese company the location of gunshots. Current tardi said GE probably is asking itself called Haier. also aims to help retail stores use whether it can be a player in the ef- Plus, the rising popularity of LED light to send Morse Code-style mes- fort to digitize lighting without GE lamps is disrupting a business mod- sages to the smartphones of cus- Lighting — the company with the el that the industry has relied on tomers as they walk through the hardware expertise. He thinks the since Thomas Edison invented the store. answer is yes: They could do it by light bulb. GE is doing some innovative partnering with other companies. The problem: Most light-emitting things on the consumer side as well, “They can cut deals with any- diodes won’t burn out for decades. however. For instance, it has already body,” said Attardi, who runs Attar- So pretty soon, there won’t be much released a line of bulbs that you can di Marketing, an energy manage- of a market for replacement bulbs. control with a smartphone, and it ment firm in New Jersey. has developed bulbs that emit light Terry McGowan believes that GE specifically designed to help you does place significant value on its

Intelligent design wake up in the morning and fall GETTY IMAGES Nela Park operation. McGowan is a But LEDs do have other advan- asleep at night. former GE Lighting employee who tages that could give GE other ways GE Lighting also is “creating intel- candescent bulbs, according to could work with Current to develop now serves as director of engineer- to make money. They’re essentially ligent LEDs for homes that can Randy Reid, who runs a lighting new products for commercial cus- ing and technology for the American computer chips that emit light, so sense and hear” — bulbs that will industry website, www.edisonre- tomers. Lighting Association. it’s easier to monitor them, control turn homes into “smart homes,” ac- port.net. Plus, GE might have a hard time He said that the company has them and connect them to sensors cording to a statement from compa- Reid expects that many of GE selling the lighting business for a de- turned Northeast Ohio into a world- and other electronic equipment. ny officials. Lighting’s “best and brightest” em- cent price, given the challenges that class “lighting hub” and would be Thus, the Current business unit ployees will join Current. the business faces, Reid said. reluctant to give up such an asset. He believes GE wants to sell the Other big companies — including He described how he gets lunch will use those capabilities to turn Seeing the light? lighting into a service business. The business, but a few factors could Philips and Osram — already are twice a month with groups of local goal of that unit — which includes Even so, it will be hard for GE stop it from doing so. For one, Nela trying to sell their lighting units. Chi- GE retirees and lighting technicians. GE’s solar, energy storage and elec- Lighting to replace the cash flow Park houses GE’s LED research and nese investors had prepared to buy “How many other cities can you tric vehicle operations — is to help generated by the constant sale of in- development team. So that team Philips’ lighting unit, but U.S. regu- do that in?” he said.

Volume 37, Number 6 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow © 2015 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other 1-877-824-9373. REPRINT INFORMATION: 212-2210-00750 locations), or fax 313-446-6777. Get a Life!

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CRAIN’S CLEVELAND BUSINESS z FEBRUARY 8 - 14, 2016 z PAGE 27 LOCAL SOFTWARE DEVELOPERS The List Ranked by full-time local employees

NUMBER OF LOCAL FULL-TIME NAME EMPLOYEES THIS ADDRESS FT LOCAL YEAR TOP LOCAL EXECUTIVE YEAR PHONE/WEB SITE 1-1-2016 1-1-2015 PROGRAMMERS INDUSTRY SPECIALIZATION SOFTWARE PRODUCTS FOUNDED TITLE

Hyland, creator of OnBase 1,515 1,339 172 Health care, higher education, OnBase, enterprise content management 1991 Bill Priemer 1 28500 Clemens Road, Westlake 44145 government, financial services, software suite president, CEO (440) 788-5000/www.hyland.com insurance, manufacturing

MRI Software LLC 345 334 102 Property and investment Version X, MRI Commercial Management, 1971 Patrick Ghilani 2 28925 Fountain Parkway, Solon 44139 management solutions for the MRI Investment Management, MRI CEO (800) 321-8770/www.mrisoftware.com global real estate industry Residential Management

TMW Systems Inc. 310 300 116 Transportation management TMWSuite, TL2000, TruckMate, Innovative, 1983 David W. Wangler 3 6085 Parkland Blvd., Mayfield Heights 44124 and logistics software, fleet TMW Business Intelligence, Netwise, president (216) 831-6606/www.tmwsystems.com maintenance management ExpertFuel, TMT Fleet Maintenance

Snap-on Business Solutions Inc. 245 245 80 Global electronic parts Global EPC 2006 John A. Wolf 4 4025 Kinross Lakes Parkway, Richfield 44286 catalogs president, OEM Solutions (330) 659-1600/www.sbs.snapon.com

OEC 218 210 63 OEM distribution networks, D2DLink, CollisionLink, RepairLink, 2000 Charles Rotuno 5 4205 Highlander Parkway, Richfield 44286 serving dealership and repair ConsumerLink, MyPriceLink president, CEO (330) 523-1800/www.oeconnection.com customers

Brandmuscle 208 176 NA Local marketing software and BrandBuilder, Instant Impact, 2000 Clarke Smith 6 1100 Superior Ave., Suite 500, Cleveland 44114 services DesignTracker chief strategy officer (216) 464-4342/www.brandmuscle.com

Explorys, an IBM Co. 200 140 43 Health care data analytics Explorys Platform, EPM: Explore, EPM: 2009 Charlie Lougheed, president, chief 7 8501 Carnegie Ave., Suite 200, Cleveland 44106 Measure, EPM: Registry, EPM: Engage strategy officer; Stephen McHale, (216) 767-4700/www.explorys.com CEO; Anil Jain, M.D., chief medical officer

Fleetmatics USA LLC 157 150 NA Delivery and service, cable and Fleetmatics REVEAL, Fleetmatics WORK 2004 Matt Brett 8 31500 Bainbridge Road, Solon 44139 telecommunications, HVAC and vice president, global customer care (216) 896-7243/www.fleetmatics.com plumbing, construction

Turning Technologies 143 132 58 Instructional, assessment TurningPoint, TurningPoint Cloud, 2002 Mike Broderick, CEO, co-founder; 9 255 W. Federal St., Youngstown 44503 delivery and data collection TurningPoint Lite, TurningPoint Lite Plus, Greg Simmons, sr. v.p., chief sales (330) 746-3015/www.turningtechnologies.com solutions ExamView Assessment Suite officer; Dave Kauer, president, COO

Foundation Software 129 113 25 Job cost accounting software FOUNDATION construction accounting 1985 Fred J. Ode 10 17999 Foltz Industrial Parkway, Strongsville 44149 for the construction industry software, FOUNDATION mobile, CEO, chairman, founder (800) 246-0800/www.foundationsoft.com FOUNDATION SaaS, ThinkHR

1 EDI Source Inc. 82 72 7 Software development Electronic Data Interchange (EDI) software 1989 John Onysko 11 31875 Solon Road, Solon 44139 includes EDI/PX, EDI/HQ managed or SaaS CEO (440) 519-7800/www.1edisource.com

MIM Software Inc. 78 70 NA Medical imaging MIM, Mobile MIM, MIMcloud, MIM Symphony, 1999 Andrew Nelson 12 25800 Science Park Drive, Suite 180, Cleveland 44122 MIM Encore, MIM Maestro CEO (216) 455-0600/www.mimsoftware.com

Software Answers Inc. 58 58 21 Web-based K-12 student, ProgressBook Suite: GradeBook, 1994 Paul Chaffee 13 6770 W. Snowville Road, Suite 200, Brecksville 44141 classroom, school and district ParentAccess, StudentInformation (SIS), CEO (440) 526-0095/www.progressbook.com management software SpecialServices, DataMap, VendorLink

Tribute Inc. 54 49 15 Industrial distribution, fluid Tribute Software, TrulinX Software 1981 Timothy Reynolds 14 1696-F Georgetown Road, Hudson 44236 power, fluid handling, hose, president, CEO (330) 656-3006/www.tribute.com conveyor belt, gaskets, seals

Dakota Software 50 40 17 Environment, health and safety ProActivity Suite, Dakota Profiler, Dakota 1988 Reg Shiverick 15 1375 Euclid Ave., Suite 500, Cleveland 44115 Auditor, Dakota Tracer, Dakota Scout, president (216) 765-7100/www.dakotasoft.com Dakota Metrics

New Innovations Inc. 49 48 13 Medical Residency Management Suite 1995 Steve Reed 16 3540 Forest Lake Drive, Uniontown 44685 CEO (330) 899-9954/www.new-innov.com

BuyerQuest Inc. 48 25 NA NA NA 2010 Jack Mulloy 17 343 W. Bagley Road, Suite 300, Cleveland 44017 CEO (866) 937-0670/www.buyerquest.com

FeneTech Inc. 48 45 18 Fenestration ERP, sales FeneVision 1996 Ronald W. Crowl 17 260 Campus Drive, Aurora 44202 automation president, CEO (330) 995-2830/www.fenetech.com

Main Sequence Technology Inc. 47 46 10 HR applicant tracking, PCRecruiter, PCRecruiter Resume Inhaler, 1998 Martin H. Snyder, president 19 4420 Sherwin Road, Hamilton Hall, Willoughby 44094 recruiting CRM, staffing PCRecruiter Outlook Portal Gretchen A. Kubicek, CFO (440) 946-5214/www.pcrecruiter.com software

e2b teknologies Inc. 44 37 12 Accounts receivable credit and Anytime Collect by e2b teknologies; 2001 Bill Henslee, CEO 20 521 Fifth Ave., Chardon 44024 collections software, custom development for Sage 100 ERP, Lynne Henslee, president (440) 352-4700/www.e2btek.com enterprise resource planning Sage ERP X3, Sage 500 ERP and Epicor ERP

Data-Basics Inc. 43 43 15 Service management and Sam Pro Enterprise, TechAnywhere for 1974 Arthur K. Divell 21 600 Broadway Ave., Cleveland 44146 accounting Android, DBAnalytics, CRMAnywhere CEO (216) 663-5600/www.databasics.com

StreamLink Software 43 37 9 Software AmpliFund, BoardMax 2008 Adam Roth 21 812 Huron Road, Suite 350, Cleveland 44115 CEO (216) 377-5500 /www.streamlinksoftware.com

Segmint Inc. 41 27 25 Financial services, retail, SegmintOne campaign management 2007 Russel R. Heiser II 23 One Cascade Plaza, Suite 1800, Akron 44308 insurance, health care system, SegmintEngage, SegmintReach, president, CEO, co-founder (888) 734-6468/www.segmint.com SegmintConnect, SegmintExplore

Pointe Blank Solutions Ltd. 40 35 20 Health care, government CasePointe, MatrixPointe Software 2000 Thomas J. Coury 24 30400 Detroit Road, Suite 400, Westlake 44145 chairman, chief software architect (440) 243-5100/www.pointeblank.net

Squirrels 36 22 7 Education AirParrot 2, Reflector 2, ScreenToss, 2012 David Stanfill 25 121 Wilbur Drive NE, North Canton 44720 Reflector Director, Reflector Student CEO, founder (855) 207-0927/www.airsquirrels.com

Onosys, a LivingSocial Company 27 28 12 Ecommerce, SaaS (Software as Onosys Online Ordering 2005 Adam Heintz 26 1220 W. Sixth St., Suite 200, Cleveland 44113 a Service) president (216) 426-0000/www.onosys.com

ID Networks Inc. 26 36 NA Software solutions for law Jail Management, Records Management, 1991 Douglas G. Blenman Sr. 27 7720 Jefferson Road, Ashtabula 44004 enforcement agencies ImageNet, FingerRoll Livescans, CAD and president (440) 992-0062/www.idnetworks.com Mobile Systems

RESEARCHED BY DEBORAH W. HILLYER

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. 20160208-NEWS--28-NAT-CCI-CL_-- 2/5/2016 8:57 AM Page 1

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